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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 11/13/2024BOARD OF DIRECTORS NOVEMBER 13, 2024 East Valley Water District was formed in 1954 and provides water and wastewater services to 108,000 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. GOVERNING BOARD EXECUTIVE MANAGEMENT James Morales, Jr. Chairman of the Board Michael Moore General Manager/CEO Ronald L. Coats Vice­Chairman Brian W. Tompkins Chief Financial Officer Chris Carrillo Governing Board Member Jeff Noelte Director of Engineering & Operations David E. Smith Governing Board Member Kerrie Bryan Director of Administrative Services Phillip R. Goodrich Governing Board Member Patrick Milroy  Operations Manager Manuel Moreno Water Reclamation Manager William Ringland Public Affairs/Conservation Manager Justine Hendricksen District Clerk Board of Directors Regular Meeting & Public Hearing November 13, 2024 ­ 5:30 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 PRESENTATIONS AND CEREMONIAL ITEMS Community Advisory Commission ­ Member Recognition American Society of Civil Engineers (ASCE) Award Presentation ­ Sterling Natural Resource Center 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. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.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. a.Approve the October 23, 2024 Regular Board Meeting Minutes b.Approve Directors' Fees and Expenses for October2024 c.Accept and File Investment Transaction Report for Month Ended October 31, 2024 d.Accept and File Financial Statements for July 2024 e.Accept and File Financial Statements for August 2024 f.Adopt Resolution 2024.16 ­ Amending the District's Conflict of Interest Code 3.INFORMATIONAL ITEMS a.Industry Benchmark Updates 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of the Annual Comprehensive Financial Report for Year Ended June 30, 2024 b.Consider Adoption of 2025­26 Legislative Platform c.Consider Adoption of Ordinance 406 ­ Updating East Valley Water District Rules and Regulations for Water Service, Public Hearing d.Consider Adoption of Ordinance 407 ­ Updating East Valley Water District Regulations for Sewer Service, Public Hearing e.Consider Adoption of Resolution 2024.12 ­ Updating the Schedule of Water and Wastewater Rates and Charges, Public Hearing f.Consider Ratification of Contract with Xylem Dewatering Solutions for the Sterling Natural Resource Center which was approved on an emergency basis g.Consider Approval of Environmental Mitigation Reimbursement Agreement with the San Bernardino Valley Municipal Water District h.Consider Approval of a Design­Build Contract Amendment and Associated Support Services Contract Amendments for Additional Sewer Lateral Construction and an Additional Membrane Bio­Reactor Train at the Sterling Natural Resource Center 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSNOVEMBER 13, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to108,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTJames Morales, Jr.Chairman of the Board Michael MooreGeneral Manager/CEORonald L. CoatsVice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesPhillip R. GoodrichGoverning Board Member Patrick Milroy Operations ManagerManuel MorenoWater Reclamation ManagerWilliam Ringland Public Affairs/Conservation Manager Justine Hendricksen District Clerk Board of Directors Regular Meeting & Public Hearing November 13, 2024 ­ 5:30 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 PRESENTATIONS AND CEREMONIAL ITEMS Community Advisory Commission ­ Member Recognition American Society of Civil Engineers (ASCE) Award Presentation ­ Sterling Natural Resource Center 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. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.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. a.Approve the October 23, 2024 Regular Board Meeting Minutes b.Approve Directors' Fees and Expenses for October2024 c.Accept and File Investment Transaction Report for Month Ended October 31, 2024 d.Accept and File Financial Statements for July 2024 e.Accept and File Financial Statements for August 2024 f.Adopt Resolution 2024.16 ­ Amending the District's Conflict of Interest Code 3.INFORMATIONAL ITEMS a.Industry Benchmark Updates 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of the Annual Comprehensive Financial Report for Year Ended June 30, 2024 b.Consider Adoption of 2025­26 Legislative Platform c.Consider Adoption of Ordinance 406 ­ Updating East Valley Water District Rules and Regulations for Water Service, Public Hearing d.Consider Adoption of Ordinance 407 ­ Updating East Valley Water District Regulations for Sewer Service, Public Hearing e.Consider Adoption of Resolution 2024.12 ­ Updating the Schedule of Water and Wastewater Rates and Charges, Public Hearing f.Consider Ratification of Contract with Xylem Dewatering Solutions for the Sterling Natural Resource Center which was approved on an emergency basis g.Consider Approval of Environmental Mitigation Reimbursement Agreement with the San Bernardino Valley Municipal Water District h.Consider Approval of a Design­Build Contract Amendment and Associated Support Services Contract Amendments for Additional Sewer Lateral Construction and an Additional Membrane Bio­Reactor Train at the Sterling Natural Resource Center 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSNOVEMBER 13, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to108,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTJames Morales, Jr.Chairman of the Board Michael MooreGeneral Manager/CEORonald L. CoatsVice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesPhillip R. GoodrichGoverning Board Member Patrick Milroy Operations ManagerManuel MorenoWater Reclamation ManagerWilliam RinglandPublic Affairs/Conservation ManagerJustine HendricksenDistrict ClerkBoard of Directors Regular Meeting & Public HearingNovember 13, 2024 ­ 5:30 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 PRESENTATIONS AND CEREMONIAL ITEMS Community Advisory Commission ­ Member Recognition American Society of Civil Engineers (ASCE) Award Presentation ­ Sterling Natural Resource Center 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. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.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. a.Approve the October 23, 2024 Regular Board Meeting Minutes b.Approve Directors' Fees and Expenses for October2024 c.Accept and File Investment Transaction Report for Month Ended October 31, 2024 d.Accept and File Financial Statements for July 2024 e.Accept and File Financial Statements for August 2024 f.Adopt Resolution 2024.16 ­ Amending the District's Conflict of Interest Code 3.INFORMATIONAL ITEMS a.Industry Benchmark Updates 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of the Annual Comprehensive Financial Report for Year Ended June 30, 2024 b.Consider Adoption of 2025­26 Legislative Platform c.Consider Adoption of Ordinance 406 ­ Updating East Valley Water District Rules and Regulations for Water Service, Public Hearing d.Consider Adoption of Ordinance 407 ­ Updating East Valley Water District Regulations for Sewer Service, Public Hearing e.Consider Adoption of Resolution 2024.12 ­ Updating the Schedule of Water and Wastewater Rates and Charges, Public Hearing f.Consider Ratification of Contract with Xylem Dewatering Solutions for the Sterling Natural Resource Center which was approved on an emergency basis g.Consider Approval of Environmental Mitigation Reimbursement Agreement with the San Bernardino Valley Municipal Water District h.Consider Approval of a Design­Build Contract Amendment and Associated Support Services Contract Amendments for Additional Sewer Lateral Construction and an Additional Membrane Bio­Reactor Train at the Sterling Natural Resource Center 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSNOVEMBER 13, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to108,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTJames Morales, Jr.Chairman of the Board Michael MooreGeneral Manager/CEORonald L. CoatsVice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesPhillip R. GoodrichGoverning Board Member Patrick Milroy Operations ManagerManuel MorenoWater Reclamation ManagerWilliam RinglandPublic Affairs/Conservation ManagerJustine HendricksenDistrict ClerkBoard of Directors Regular Meeting & Public HearingNovember 13, 2024 ­ 5:30 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 filedwith the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesdaymeeting not requiring departmental investigation, will be considered by the Board ofDirectors.CALL TO ORDERPLEDGE OF ALLEGIANCEPRESENTATIONS AND CEREMONIAL ITEMSCommunity Advisory Commission ­ Member RecognitionAmerican Society of Civil Engineers (ASCE) Award Presentation ­ Sterling NaturalResource CenterROLL CALL OF BOARD MEMBERSPUBLIC COMMENTSAny person wishing to speak to the Board of Directors is asked to complete a SpeakerCard and submit it to the District Clerk prior to the start of the meeting. Each speaker islimited to three (3) minutes, unless waived by the Chairman of the Board. Under the Stateof California Brown Act, the Board of Directors is prohibited from discussing or takingaction on any item not listed on the posted agenda. The matter will automatically bereferred to staff for an appropriate response or action and may appear on the agenda at afuture meeting.1.AGENDAThis agenda contains a brief general description of each item to be considered.Except as otherwise provided by law, no action shall be taken on any item notappearing on the following agenda unless the Board of Directors makes adetermination that an emergency exists or that a need to take immediate action onthe item came to the attention of the District subsequent to the posting of theagenda.a.Approval of Agenda2.APPROVAL OF CONSENT CALENDARAll matters listed under the Consent Calendar are considered by the Board ofDirectors to be routine and will be enacted in one motion. There will be nodiscussion of these items prior to the time the board considers the motion unlessmembers of the board, the administrative staff, or the public request specific itemsto be discussed and/or removed from the Consent Calendar. a.Approve the October 23, 2024 Regular Board Meeting Minutes b.Approve Directors' Fees and Expenses for October2024 c.Accept and File Investment Transaction Report for Month Ended October 31, 2024 d.Accept and File Financial Statements for July 2024 e.Accept and File Financial Statements for August 2024 f.Adopt Resolution 2024.16 ­ Amending the District's Conflict of Interest Code 3.INFORMATIONAL ITEMS a.Industry Benchmark Updates 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of the Annual Comprehensive Financial Report for Year Ended June 30, 2024 b.Consider Adoption of 2025­26 Legislative Platform c.Consider Adoption of Ordinance 406 ­ Updating East Valley Water District Rules and Regulations for Water Service, Public Hearing d.Consider Adoption of Ordinance 407 ­ Updating East Valley Water District Regulations for Sewer Service, Public Hearing e.Consider Adoption of Resolution 2024.12 ­ Updating the Schedule of Water and Wastewater Rates and Charges, Public Hearing f.Consider Ratification of Contract with Xylem Dewatering Solutions for the Sterling Natural Resource Center which was approved on an emergency basis g.Consider Approval of Environmental Mitigation Reimbursement Agreement with the San Bernardino Valley Municipal Water District h.Consider Approval of a Design­Build Contract Amendment and Associated Support Services Contract Amendments for Additional Sewer Lateral Construction and an Additional Membrane Bio­Reactor Train at the Sterling Natural Resource Center 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURNADJOURN Agenda Item #2a November 13, 20241 Meeting Date: November 13, 2024 Agenda Item #2a Consent Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve the October 23, 2024 Regular Board Meeting Minutes RECOMMENDATION That the Board of Directors approve the October 23, 2024 regular Board meeting minutes as submitted. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment to Sustainability, Transparency, and Accountability B. Utilize Effective Communication Methods REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS Draft October 23, 2024 Regular Board Meeting Minutes Regular Board Meeting Meeting Date: October 23, 2024 CALL TO ORDER The Chairman of the Board called the meeting to order at 5:30 p.m. PLEDGE OF ALLEGIANCE Director Goodrich led the flag salute. ROLL CALL OF BOARD MEMBERS PRESENT Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT None STAFF Michael Moore, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Kerrie Bryan, Director of Administrative Services; Patrick Milroy, Operations Manager; William Ringland, Public Affairs/Conservation Manager; Justine Hendricksen, District Clerk; Eileen Tafolla-Bateman, Human Resources Coordinator LEGAL COUNSEL Steve Elie GUESTS Members of the public PUBLIC COMMENTS Chairman Morales declared the public participation section of the meeting open at 5:31 p.m. There being no written or verbal comments, the public participation section was closed. Draft pending approval 1 8 8 6 1.APPROVAL OF AGENDA a.Approval of Agenda A motion was made by Director Smith, seconded by Vice Chairman Coats, that the Board approve the October 23, 2024 agenda as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None 2.APPROVAL OF CONSENT CALENDAR a.Approve the September 11, 2024 Regular Board Meeting Minutes b.Approve the October 9, 2024 Regular Board Meeting Minutes c.Approve September 2024 Disbursements: Accounts payable disbursements for the period include check numbers 263902 through 264094, bank drafts, and ACH payments in the amount of $4,252,671.34 and $543,707.05 for payroll d.Accept and File Investment Report for Quarter Ended September 30, 2024 A motion was made by Director Goodrich, seconded by Director Carrillo, that the Board approve the Consent Calendar items as submitted. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None 3.INFORMATIONAL ITEMS a. Educational Partnerships and Summer Internship Update The Director of Administrative Services provided an update on the District’s educational partnerships, pathway program, and this summer’s paid internship program. She stated that at the conclusion of the internship program, the students presented engaging and insightful PowerPoint presentations to the leadership team, school district staff, and Tomorrow’s Talent. Their presentations included an introduction of themselves, what they learned, their favorite aspect of the program, and takeaways for the future. Dr. Dale Marsden thanked Mr. Bryan for her leadership throughout this journey and the District for their vision and for continuing the program's legacy. He provided information on the success of the program and the partnership with Tomorrow’s Talent. He stated that this program has had a positive effect on other public agencies and the community and that agencies are modeling their programs after the District. He stated that this program has added immense value to the students in our 1 8 8 6 community and thanked the District for its partnership with Tomorrow’s Talen and its innovative leadership. For information only. a. Consider Approval of Water Efficiency Support Services Agreements The Public Affairs/Conservation Manager provided information on the water efficiency support agreements. He stated that this was a competitively bid Request for Proposal (RFP) that was posted, notifying 34 vendors throughout the process. The District received three submissions, and two are being recommended for approval this evening. The contract will be utilized to implement water efficiency programs, which include rebates, workshops, and direct install programs. Staff responded to several questions from the Board. A motion was made by Director Goodrich, seconded by Director Carrillo, that the Board of Directors approve agreements with WaterWise Consulting Inc. and GreenMedia Creations Inc. for a not-to-exceed amount of $625,000. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None b. Consider Approval of Construction Contract with Nor-Cal Pump & Well Drilling, Inc. and Adoption of Resolution 2024.15 - Adopting a Mitigated Negative Declaration and Mitigated Monitoring and Reporting Program for Well No. 129 Senior Engineer Carlson stated that groundwater wells produce 75-80 percent of the District’s water supply. A new well is needed due to the loss of three wells due to the Weaver Basin recycled water recharge project. The three wells accounted for 15 percent of the District’s groundwater supply. He stated that new wells are included in the drought contingency plan, which includes a vulnerability assessment that determines the critical drought-related vulnerabilities impacting the District’s water supply. He also stated that the District will implement mitigation actions to address potential risks and impacts of a drought and increase system resiliency. Staff responded to several questions from the Board. A motion was made by Director Goodrich, seconded by Director Carrillo, that the Board of Directors: 1 8 8 6 1. Authorize the General Manager/CEO to execute a construction agreement with Nor- Cal Pump & Well Drilling, Inc. for a not-to-exceed amount of $989,576, plus a 10% contingency; and 2. Adopt Resolution 2024.15 to adopt a Mitigated Negative Declaration and Mitigated Monitoring and Reporting Program for the Well No. 129 Project. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None c. Consider Adoption of Strategic Plan The General Manager/CEO provided an overview of the District’s Strategic Plan (Plan), which was presented to the Board on October 9, 2024. He stated that the Plan had been revised based on the Board's comments. A motion was made by Director Goodrich, seconded by Vice Chairman Coats, that the Board of Directors adopt and file the District’s Strategic Plan. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None d. Consider Voting Designee for the Association of California Water Agencies The General Manager/CEO stated that the Association of California Water Agencies is amending their by-laws, and in order for the District to cast a vote, the Board needs to designate a voting representative and alternate. A motion was made by Director Goodrich, seconded by Director Carrillo, that the Board of Directors designate James Morales, Jr. as the voting representative and Ron Coats as the alternate to represent East Valley Water District at the 2024 Association of California Water Agencies Fall Conference. The motion carried by the following: Ayes: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Absent: None 1 8 8 6 4.REPORTS a.Board of Directors’ Reports Director Goodrich reported on the following: October 15 he attended Yucaipa Valley Water District’s Board meeting where they discussed several projects; October 17 he met with the General Manager/CEO to discuss District business; October 21 he attended the Association of San Bernardino County Special District’s monthly meeting where they discussed a small water agency in Barstow; and October 22 he attended the Highland Chamber of Commerce meeting where they received updates on the Line Fire and how fire services work in the City from Fire Chief Liz Brown. Director Smith reported on the following: October 17 he met with the General Manager/CEO to discuss District business; October 21 he attended the Association of San Bernardino County Special District’s monthly meeting where Valley District discussed the importance the mental health of their employees; and October 22 he attended the Highland Chamber of Commerce meeting. Director Carrillo reported on the following: October 15 he attended the San Bernardino Valley Municipal Water District’s Board meeting via Zoom; and October 21 he met with the General Manager/CEO to discuss District business. Vice Chairman Coats reported the following: October 10 he attended the Legislative and Public Outreach Committee meeting; October 14 he attended the Association of San Bernardino County Special Districts Board meeting where they discussed Association business; October 15 he attended the Association of California Water Agencies (ACWA) Region 10 Board meeting and facilities tour at Yorba Linda Water District; October 16 he met with the General Manager/CEO to discuss District business; October 17 he met with the General Manager/CEO and Chairman to discuss District business and to review the upcoming agenda; October 21 he attended the Association of San Bernardino County Special Districts Membership meeting where guest speakers spoke on the topic titled Thinking Beyond the Pipes: Organizations Rooted in People; October 22 he attended the City of San Bernardino Board of Water Commissioners meeting where they approved multiple service contracts; October 22 he attended the Highland Chamber of Commerce meeting; and October 23 he attended the City of San Bernardino Water Department ribbon cutting ceremony for their hydro-electric project. Chairman Morales reported on the following: October 10 he attended the Legislative & Public Outreach committee meeting; October 15 he sat on a panel at the Water Revolution Symposium in Los Angeles and provided information on the Sterling Natural Resource Center; October 17 he met with the General Manager/CEO to discuss District business; October 21 he attended the Association of San Bernardino County Special Districts monthly meeting where Valley District discussed their partnership with the 1 8 8 6 California State University San Bernardino; and October 22 he attended ACWA’s Region 9 meeting in Temecula. For information only. b. General Manager/CEO Report The General Manager/CEO announced the following: •Tomorrow staff and I will be attending the American Concrete Institute SoCal Chapter Award Ceremony. The SNRC project has been selected to receive the 2024 Top Project Concrete Award in the Infrastructure Category. •The District is participating in Jefferson Hunt Elementary’s Trunk-or-Treat Parade on Thursday, October 31st. •The Splash into Conservation Festival has been rescheduled to Saturday, November 2, 2024. The festival will take place at the Sterling Natural Resource Center starting at 10:00 a.m. The free event will feature music, games, a trackless train, and more! To register for this free event, customers may visit eastvalley.org/ConservationFestival •The November 12th Finance and Human Resources Committee meeting has been rescheduled to November 4 @ 1:30 p.m. •In observance of Veteran’s Day, District offices and customer service lines will be closed on Monday, November 11. Customers may pay their bill online, by phone, or at any 7-Eleven store. •Reviewed the Water Supply Dashboard, the new District video, and the District’s participation in the California Great ShakeOut. For information only. c. Legal Counsel Report Nothing to report. d. Board of Directors’ Comments Vice Chairman Coats thanked everyone for attending the Board meeting. 1 8 8 6 Chairman Morales discussed his participation in California’s Great ShakeOut and thanked staff for working with the CalOES to mitigate current and future impacts of the Line Fire. For information only. ADJOURN Chairman Morales adjourned the meeting at 7:03 p.m. James Morales, Jr., Board President Michael Moore, Board Secretary Agenda Item #2b November 13, 20241 Meeting Date: November 13, 2024 Agenda Item #2b Consent Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve Directors' Fees and Expenses for October2024 RECOMMENDATION That the Board of Directors approve the Directors' Fees and Expenses for October 2024 as submitted. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment to Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT The fiscal impact associated with this agenda item is $11,448.21 which is included in the current fiscal year budget. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS October 2024 Director Expense Reports Name: Month / Year:2024 Meeting No.Stipend Written Oral 1 10 /02 248.06 2 10 /05 248.06 3 10 /08 248.06 4 10 /09 248.06 5 10 /15 248.06 6 10 /21 248.06 7 10 /23 248.06 8 10 /29 248.06 9 10 11 12 13 14 15 16 17 18 19 20 Meetings 0.67/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval $0.00 Mileage Miscellaneous Reimbursement Description Regular Board Meeting San Bernardino Valley MWD Meeting with General Manager/CEO or Designee Regular Board Meeting Inland Action Meeting Expense Type $1,984.48 $0.00 Reimbursement Administration Signature I certify that the above is correct and accurate to the best of my knowledge. Chris Carrillo Date Meeting / Event Description Date City of San Bernardino Council Meeting Highland Senior Center Re-Grand Opening Meeting with General Manager/CEO or Designee $1,984.48 Chris Carrillo October / 0.00 X 8 Report Provided Subtotal Meetings' Stipend Mileage DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2024 1 2 3 4 5 Chris Carrillo October / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Attended via Zoom San Bernardino City Council meeting. 10 / 2 / 2024 City of San Bernardino Council Meeting Brief Description of Meeting/Event Value to EVWD Meeting Date:10 / 5 / 2024 Event Description:Highland Senior Center Re-Grand Opening Brief Description of Meeting/Event Value to EVWD Meeting Date:10 / 8 / 2024 Event Description:Meeting with General Manager/CEO or Designee Attended Highland Senior Center Re-Grand Opening. Brief Description of Meeting/Event Value to EVWD Conference call with CEO Moore to dicuss district business and agenda review. Meeting Date:10 / 9 / 2024 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Attended regular board meeting. Meeting Date:10 / 15 / 2024 Event Description:San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD Attended via Zoom San Bernardino Valley MWD regular board meeting. DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2024 6 7 8 9 10 Meeting Date:10 / 21 / 2024 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Monthly meeting with CEO Moore to discuss district business. Meeting Date:10 / 23 / 2024 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Attended regular board meeting. Meeting Date:10 / 29 / 2024 Event Description:Inland Action Meeting Brief Description of Meeting/Event Value to EVWD Attended via Zoom Inland Action meeting. Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Chris Carrillo October / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2024 Meeting No.Stipend Written Oral 1 10 /01 248.06 2 10 /02 248.06 3 10 /03 248.06 4 10 /04 0.00 5 10 /09 248.06 6 10 /10 248.06 7 10 /14 0.00 8 10 /15 248.06 9 10 /16 0.00 10 10 /17 248.06 11 10 /21 248.06 12 10 /22 248.06 13 10 /22 0.00 14 10 /23 0.00 15 10 /23 248.06 16 17 18 19 20 Meetings 0.67/mi No. 1 10 /02 2 10 /03 3 10 /03 4 10 /03 5 10 /03 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval Ronald L. Coats October / 54.00 X 10 Report Provided Subtotal Meetings' Stipend Mileage San Bernardino Water Dept, Hydro Ribbon Cut Meeting with General Manager/CEO or Designee Administration Signature I certify that the above is correct and accurate to the best of my knowledge. Ronald L. Coats Date Meeting / Event Description Regular Board Meeting Date EVWD facilities tour Travel to Sacramento CSDA Committee Meetings $2,964.78 29.99 18.00 $2,480.60 $36.18 Reimbursement 34.72 Meals Lodging 30.10 335.19 Misc. - Other Parking Misc. - Other Mileage 27.00 27.00 Miscellaneous Reimbursement Description Agenda Review ASBCSD General Meeting San Bernardino Board of Water Commissioners Highland Chamber of Commerce Agenda Review Regular Board Meeting Legislative & Public Affairs Committee Meeting ASBCSD Board Meeting ACWA Event/Region 10 Meeting and Tour Expense Type $448.00 Lyft from Airport to Sacramento Breakfast Hotel Lyft from Sacramento to Airport Parking at ONT DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2024 1 2 3 4 5 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD See official board meeting minutes Brief Description of Meeting/Event Value to EVWD Attended Professional Development and Membership Services committee meetings in Sacramento Meeting Date:10 / 4 / 2024 Event Description:Agenda Review Brief Description of Meeting/Event Value to EVWD Met with Chairman Morales and CEO Moore to discuss the upcoming agenda and other district business Meeting Date:10 / 9 / 2024 Meeting Date:10 / 2 / 2024 Event Description:Travel to Sacramento Brief Description of Meeting/Event Value to EVWD Meeting Date:10 / 3 / 2024 Event Description:CSDA Committee Meetings Attended Professional Development and Membership Services committee meetings in Sacramento Ronald L. Coats October / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Pat Milroy, Operations Supervisor, took me to some EVWD facilities for information on each and operational and maintenance updates 10 / 1 / 2024 EVWD facilities tour Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2024 6 7 8 9 10 Ronald L. Coats October / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Met with the Michael Moore to discuss district business. Meeting Date:10 / 17 / 2024 Event Description:Agenda Review Brief Description of Meeting/Event Value to EVWD Met with Chairman Morales and CEO Moore to review tonight's agenda and other district business and updates. Event Description:ACWA Event/Region 10 Meeting and Tour Brief Description of Meeting/Event Value to EVWD Jason Wolfe from our engineering department and I, attended their quarterly meeting. They had a great discussion on PFAS in the water and took a tour of PFAS Treatment Plant at Yorba Linda Water District, and City of Anaheim Water District. Meeting Date:10 / 16 / 2024 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Chairman Morales and I received updates on Outreach, Water Reclamation, Awards received and submitted, Facility Rentals, Looking Forward, Citizens Advisory Committee, Making Conservation a Way of Life, and our revised Legislative Platform. Meeting Date:10 / 14 / 2024 Event Description:ASBCSD Board Meeting Brief Description of Meeting/Event Value to EVWD Attended our monthly board meeting to discuss association business and our upcoming general meeting. Meeting Date:10 / 15 / 2024 Meeting Date:10 / 10 / 2024 Event Description:Legislative & Public Affairs Committee Meeting Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2024 11 12 13 14 15 Ronald L. Coats October / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. See official board meeting minutes Event Description:San Bernardino Water Dept, Hydro Ribbon Cut Brief Description of Meeting/Event Value to EVWD Attended the ribbon cutting for their hydro-electric project that uses State Water Project water to generate electricity. Meeting Date:10 / 23 / 2024 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD They approved contracts for several maintenance issues; Liability Insurance for Crime Shield, Directors and Officers, Cyber Security and Underground Storage Tanks. Cyber Insurance went down 28%, all others had modest increases. Meeting Date:10 / 22 / 2024 Event Description:Highland Chamber of Commerce Brief Description of Meeting/Event Value to EVWD Attended their monthly meeting where the guest speaker was Liz Brown, Battalion Chief for the City of Highland Fire Department. Meeting Date:10 / 23 / 2024 Event Description:ASBCSD General Meeting Brief Description of Meeting/Event Value to EVWD Guest speakers Heather Dyer, from San Bernardino Valley Municipal Water District and Dr. Jennifer Alford, Director CSUSB Institute for Watershed Resiliency spoke on Thinking Beyond the Pipes: Organizations Rooted in People. Meeting Date:10 / 22 / 2024 Event Description:San Bernardino Board of Water Commissioners Brief Description of Meeting/Event Value to EVWD Meeting Date:10 / 21 / 2024 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 4 Name: Month / Year:2024 Meeting No.Stipend Written Oral 1 10 /05 248.06 2 10 /08 248.06 3 10 /09 248.06 4 10 /14 248.06 5 10 /17 248.06 6 10 /21 248.06 7 10 /22 248.06 8 10 /23 248.06 9 10 11 12 13 14 15 16 17 18 19 20 Meetings 0.67/mi No. 1 2 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval Phillip R. Goodrich October / 0.00 X 8 Report Provided Subtotal Meetings' Stipend Mileage Administration Signature I certify that the above is correct and accurate to the best of my knowledge. Phillip R. Goodrich Date Meeting / Event Description Date Highland Senior Center Grand Re-Opening City of Highland Council Meeting Regular Board Meeting $1,984.48 $1,984.48 $0.00 Reimbursement Mileage Miscellaneous Reimbursement Description Yucaipa Water Board Meeting Meeting with General Manager/CEO or Designee ASBCSD Chamber of Commerce Event Regular Board Meeting Expense Type $0.00 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2024 1 2 3 4 5 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD Attend Monthly meeting with CEO Moore Agenda review and District updates Brief Description of Meeting/Event Value to EVWD Attend Regular Board Meeting Ref. Mins This Day Meeting Date:10 / 14 / 2024 Event Description:Yucaipa Water Board Meeting Brief Description of Meeting/Event Value to EVWD Attend Yucaipa Valley Regular Board meeting as Board Rep. Meeting Date:10 / 17 / 2024 Meeting Date:10 / 8 / 2024 Event Description:City of Highland Council Meeting Brief Description of Meeting/Event Value to EVWD Meeting Date:10 / 9 / 2024 Event Description:Regular Board Meeting Attend Monthly City Council Meeting as Board Rep. Phillip R. Goodrich October / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Represent District at the Re-Opening of the Highland Senior Center 10 / 5 / 2024 Highland Senior Center Grand Re-Opening Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2024 6 7 8 9 10 Phillip R. Goodrich October / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Attend Regular board ref.mins. This day Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Attend Reg Board Meeting Ref. Mins. This day Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Attend Monthly Spl. Districts Meeting hosted by Valley District updates on Building staff vitality and water fellowship program Meeting Date:10 / 22 / 2024 Event Description:Chamber of Commerce Event Brief Description of Meeting/Event Value to EVWD Attend Monthly business lunch updates on Fire Dept. operations and current condition of Line Fire Meeting Date:10 / 23 / 2024 Meeting Date:10 / 21 / 2024 Event Description:ASBCSD Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2024 Meeting No.Stipend Written Oral 1 10 /01 0.00 2 10 /02 236.25 3 10 /03 236.25 4 10 /04 236.25 5 10 /09 236.25 6 10 /10 236.25 7 10 /15 236.25 8 10 /17 236.25 9 10 /21 236.25 10 10 /22 236.25 11 10 /23 236.25 12 13 14 15 16 17 18 19 20 Meetings 0.67/mi No. 1 10 /15 2 10 /14 3 4 5 6 7 8 9 10 Subtotal TOTAL PAYMENT Date of Approval James Morales, Jr.October / 278.00 X 10 114.00 Report Provided Subtotal Meetings' Stipend Mileage ASBCSD Administration Signature I certify that the above is correct and accurate to the best of my knowledge. James Morales, Jr. Date Meeting / Event Description Date Water Revolution Symposium 2024 San Bernardino Valley MWD San Bernardino Valley MWD $2,778.05 $2,362.50 $186.26 Reimbursement 196.73 Meals 32.56 Lodging Mileage 164.00 Miscellaneous Reimbursement Description ACWA Event Regular Board Meeting Meeting with General Manager/CEO or Designee Regular Board Meeting Legislative & Public Affairs Committee Meeting Water Revolution Symposium 2024 Meeting with General Manager/CEO or Designee Expense Type $229.29 Water Revolution Symposium Panelist Water Revolution Symposium Panelist DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET 1 Name: Month / Year:2024 1 2 3 4 5 Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Please refer to public agenda. Brief Description of Meeting/Event Value to EVWD Workshop Policy Administration. Reimbursement agreement, memorandum of understanding. Board report assignment. Meeting Date:10 / 4 / 2024 Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD District operations and update. Vice Chairman. Meeting Date:10 / 9 / 2024 Meeting Date:10 / 2 / 2024 Event Description:San Bernardino Valley MWD Brief Description of Meeting/Event Value to EVWD Meeting Date:10 / 3 / 2024 Event Description:San Bernardino Valley MWD Workshop. Directors handbook. Board report assignment. James Morales, Jr.October / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Meeting Date: Event Description: Panelist planning/strategy meeting with general managarger. No charge more than 10 per reporting period. 10 / 1 / 2024 Water Revolution Symposium 2024 Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 2 Name: Month / Year:2024 6 7 8 9 10 James Morales, Jr.October / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Monthly association meeting. SB Valley and CSUSB presenting on pathways program. Meeting Date:10 / 22 / 2024 Event Description:ACWA Event Brief Description of Meeting/Event Value to EVWD Region 9 board meeting. Educational workshop planning/discussion/topic/panelist for state conference. Event Description:Meeting with General Manager/CEO or Designee Brief Description of Meeting/Event Value to EVWD District operations and update. Vice Chairman. Meeting Date:10 / 21 / 2024 Event Description:ASBCSD Brief Description of Meeting/Event Value to EVWD Please refer to public agenda. Meeting Date:10 / 15 / 2024 Event Description:Water Revolution Symposium 2024 Brief Description of Meeting/Event Value to EVWD EVWD invited to present on panel discussion regarding experiences of completing recycled water project. Meeting Date:10 / 17 / 2024 Meeting Date:10 / 10 / 2024 Event Description:Legislative & Public Affairs Committee Meeting Brief Description of Meeting/Event Value to EVWD DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 3 Name: Month / Year:2024 11 12 13 14 15 James Morales, Jr.October / As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date: Event Description:Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Please refer to public agenda. Meeting Date: Event Description: Brief Description of Meeting/Event Value to EVWD Meeting Date:10 / 23 / 2024 DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM 4 Agenda Item #2c November 13, 20241 Meeting Date: November 13, 2024 Agenda Item #2c Consent Item 1 2 3 7 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Accept and File Investment Transaction Report for Month Ended October 31, 2024 RECOMMENDATION That the Board of Directors accept and file the attached Investment Transaction Report for the month ended October 31, 2024. BACKGROUND / ANALYSIS California Government Code §53607 requires the CFO/Treasurer of a public agency to submit a monthly investment transaction report to the Board of Directors (Board) when the Board has delegated to the CFO/Treasurer the authority to invest, reinvest, sell, or exchange securities held in the Agency’s investment portfolio. During October, there were no deposits to, or withdrawals from the LAIF account, but interest earned during the previous quarter of $203,598 was posted to the account during the month, increasing the account balance to $17,267,261 at month end. Investments held in the District’s U.S. Bank Custodial Account totaled $16,325,411 at the beginning of October. During the month, earnings added $89,333 to the U.S. Bank account, while fees reduced the balance by $1,000. In addition, the amortization of premiums and accretion of discounts on several different securities added $523 to the adjusted cost basis for the investments, resulting in an account balance at the end of October of $16,414,267. The U.S. Bank balance is split between a mutual fund balance of $424,588, and federal securities shown on the attached schedule with a total balance of $15,989,679. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management Agenda Item #2c November 13, 20242 Meeting Date: November 13, 2024 Agenda Item #2c Consent Item 1 2 3 7 REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS 1. Investment Transaction Report for Month Ended October 2024 2. LAIF Statement for October 2024 EAST VALLEY WATER DISTRICT Investment Activity Month Ended October 31, 2024 Activity (Book Value) Adjusted Purch Units /Maturity Prem Amortization/Adjusted Cost Matured /Cost Market Date Issuer CUSIP Yield Face Value Date 10/1/2024 Disc Accretion 10/1/2024 Purchases Called 10/31/2024 Value 10/18/21 US Treasury Note 91282CAZ4 0.375%500,000 11/30/25 497,727.09 164.84 497,891.93 497,891.93 479,315.00 03/31/21 US Treasury Note 91282CBT7 0.750%500,000 03/31/26 498,413.98 89.47 498,503.45 498,503.45 476,270.00 12/08/23 US Treasury Note 91282CJL6 4.875%500,000 11/30/25 500,773.10 (44.03)500,729.07 500,729.07 502,830.00 12/26/23 US Treasury Note 91282CJS1 4.250%500,000 12/31/25 499,761.48 17.23 499,778.71 499,778.71 499,690.00 12/27/23 US Treasury Note 91282CJP7 4.375%600,000 12/15/26 604,928.52 (175.03)604,753.49 604,753.49 602,646.00 04/22/24 US Treasury Note 91282CJC6 4.625%200,000 10/15/26 199,102.00 34.79 199,136.79 199,136.79 201,696.00 05/19/23 US Treasury Note 91282CGX3 3.875%300,000 04/30/25 299,360.02 98.25 299,458.27 299,458.27 299,139.00 04/05/24 US Treasury Note 91282CKH3 4.500%500,000 03/31/26 498,568.54 60.57 498,629.11 498,629.11 501,700.00 04/10/24 US Treasury Note 91282CJE2 5.000%400,000 10/31/25 399,859.05 25.74 399,884.79 399,884.79 402,564.00 4/10 & 4/11 US Treasury Note 91282CKJ9 4.500%800,000 04/15/27 795,221.78 147.55 795,369.33 795,369.33 806,688.00 09/23/24 US Treasury Note 91282CLL3 3.375%500,000 09/15/27 498,584.87 30.73 498,615.60 498,615.60 490,000.00 07/30/20 FHLMC MTN 3134HAGV9 4.000%500,000 08/27/27 496,482.97 86.54 496,569.51 496,569.51 496,530.00 08/05/20 FHLMC MTN 3134GWMY9 0.625%100,000 08/19/25 100,000.00 100,000.00 100,000.00 97,053.00 09/24/24 Federal Home Loan Bank 3130B2UW3 4.000%500,000 06/10/27 500,000.00 500,000.00 500,000.00 494,530.00 Federal Home Loan Bank 3130B2KW4 4.375%400,000 08/27/27 399,960.00 399,960.00 399,960.00 400,164.00 09/23/21 Federal Home Loan Bank 3130APAZ8 1.030%200,000 09/30/26 200,000.00 200,000.00 200,000.00 188,230.00 03/25/21 Federal Home Loan Bank 3130ALUF9 1.000%300,000 03/30/26 300,000.00 300,000.00 300,000.00 286,362.00 03/25/21 Federal Home Loan Bank 3130ALPB4 0.800%300,000 05/30/25 300,000.00 300,000.00 300,000.00 293,859.00 03/29/21 Federal Home Loan Bank 3130ALU93 0.750%200,000 06/30/25 200,000.00 200,000.00 200,000.00 195,244.00 09/17/21 Federal Home Loan Bank 3130AP6M2 1.020%400,000 09/30/26 400,000.00 400,000.00 400,000.00 376,388.00 12/27/23 Federal Home Loan Bank 3130AWLY4 5.125%400,000 06/13/25 401,804.22 (208.19)401,596.03 401,596.03 401,992.00 10/25/24 Federal Home Loan Bank 3130B3G72 4.250%300,000 10/22/27 --300,000.00 300,000.00 299,511.00 10/30/24 Federal Home Loan Bank 3130B3JC8 4.310%200,000 10/20/27 --200,000.00 200,000.00 200,000.00 10/15/21 Federal Home Loan Bank 3130AKC95 0.550%200,000 10/29/25 199,415.41 45.14 199,460.55 199,460.55 192,626.00 10/15/21 Federal Home Loan Bank 3130APJ55 1.250%300,000 10/26/26 299,998.33 0.30 299,998.63 299,998.63 282,738.00 10/28/21 Federal Home Loan Bank 3130APLB9 0.850%100,000 10/28/24 100,000.00 100,000.00 100,000.00 - 02/14/24 Federal Home Loan Bank 3130AYZV1 5.060%200,000 02/13/26 200,000.00 200,000.00 200,000.00 199,918.00 11/10/21 Federal Home Loan Bank 3130APUY9 1.000%200,000 02/28/25 200,000.00 200,000.00 200,000.00 197,628.00 11/29/21 Federal Home Loan Bank 3130AQ2H5 1.050%100,000 11/25/24 99,998.65 0.69 99,999.34 99,999.34 99,759.00 04/05/24 Federal Home Loan Bank 3130B0SH3 5.080%500,000 04/09/26 500,000.00 500,000.00 500,000.00 500,570.00 04/09/24 Federal Home Loan Bank 3130B0SU4 5.150%500,000 01/09/26 500,000.00 500,000.00 500,000.00 499,985.00 04/09/24 Federal Home Loan Bank 3130B0SP5 5.250%500,000 01/08/27 500,000.00 500,000.00 500,000.00 499,925.00 04/10/24 Federal Home Loan Bank 3130B0UQ0 5.000%500,000 04/15/27 500,000.00 500,000.00 500,000.00 502,850.00 04/16/24 Federal Home Loan Bank 3130B0YF0 5.250%300,000 04/22/26 300,000.00 300,000.00 300,000.00 300,954.00 04/22/24 Federal Home Loan Bank 3130B13F2 4.910%450,000 11/27/26 450,355.40 450,355.40 450,355.40 456,417.00 11/17/21 Federal Farm Credit Bank 3133ENEM8 1.430%200,000 11/23/26 200,000.00 200,000.00 200,000.00 188,970.00 12/27/23 Federal Farm Credit Bank 3133EPT21 4.625%400,000 01/27/25 399,855.89 19.74 399,875.63 399,875.63 400,084.00 12/12/23 Federal Home Loan Bank 3130AY5A0 5.140%300,000 12/18/25 300,000.00 300,000.00 300,000.00 300,081.00 12/14/23 Federal Home Loan Bank 3130AY5Z5 5.000%500,000 12/18/26 500,000.00 500,000.00 500,000.00 499,310.00 12/18/23 Federal Home Loan Bank 3130AY7M2 5.000%300,000 12/18/26 300,000.00 300,000.00 300,000.00 299,916.00 03/26/24 FNMA 3135GAQM6 5.150%500,000 03/26/27 500,000.00 500,000.00 500,000.00 500,475.00 04/11/24 FHLMC MTN 3134H1YX5 5.050%450,000 03/26/26 448,984.23 129.13 449,113.36 449,113.36 450,472.50 04/15/24 FHLMC MTN 3134H1E41 5.300%500,000 10/08/27 500,000.00 500,000.00 500,000.00 501,260.00 16,100,000.00 15,589,155.53 523.46 15,589,678.99 500,000.00 100,000.00 15,989,678.99 15,866,339.50 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 November 06, 2024 LAIF Home PMIA Average Monthly Yields EAST VALLEY WATER DISTRICT CHIEF FINANCIAL OFFICER P.O. BOX 3427 SAN BERNARDINO, CA 92413 Account Number: October 2024 Statement Tran Type Definitions Effective Date Transaction Date Tran Type Confirm Number Web Confirm Number Authorized Caller Amount 10/15/2024 10/14/2024 QRD 1761890 N/A SYSTEM 203,597.74 Account Summary Total Deposit:203,597.74 Beginning Balance:17,063,663.53 Total Withdrawal:0.00 Ending Balance:17,267,261.27 Agenda Item #2d November 13, 20241 Meeting Date: November 13, 2024 Agenda Item #2d Consent Item 1 2 4 0 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Accept and File Financial Statements for July 2024 RECOMMENDATION That the Board of Directors accept and file the attached financial statements as of, and for the period ended, July 31, 2024. BACKGROUND / ANALYSIS The East Valley Water District adopted an annual budget on June 26, 2024 for fiscal year 2024-25. In accordance with District Administrative Policy 7.7, the Chief Financial Officer provides regular budget updates to the Board of Directors (Board). Included herewith for the Board’s review is a summary of the District’s financial results, as of July 31, 2024. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer Agenda Item #2d November 13, 20242 Meeting Date: November 13, 2024 Agenda Item #2d Consent Item 1 2 4 0 ATTACHMENTS 1. July 2024 Financial Statement Monthly Review 2. July 2024 Financial Statements FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JULY 31, 2024 page | 1 The following is a highlight summary of the District’s financial results as of July 31, 2024. Please note all values presented are in millions (unless otherwise noted). Statement of Net Position Total assets at July 31, 2024 are $409.10 million. CLASSIFICATION WATER WASTEWATER RECLAMATION DISTRICT TOTAL Cash and Investments $ 24.65 $ 6.69 $ 4.16 $ 35.50 Utility Plant, Net 114.40 29.98 - 144.38 Other Assets 29.48 9.73 191.07 230.28 Current Liabilities 12.03 1.82 8.26 22.11 Long Term Liabilities 46.73 11.23 177.17 235.13 Beginning Net Position 108.97 33.00 9.60 151.57 Change in Equity 0.03 0.02 0.19 0.24 TOTAL NET $ 109.00 $ 33.02 $ 9.79 $ 151.81 Cash and Investments Cash and Investments are $35.50 million for the month of July, a decrease of $3.21 million from the prior month. In July the District paid $2.40 million in insurance to SDRMA for Property/Liability and Workers’ Comp Insurance for FY 2024-25 and $1.15 million to CALPERS for the FY 2024-25 Unfunded Accrued Liability Contribution. The District’s Due from Other Governments includes claims #31 and #32 to the State of California for the SRF Loan Proceeds as well as Retention Receivables from SBVMWD bringing the ending balance as of July 31, 2024 to $15.35 million. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JULY 31, 2024 page | 2 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 Mi l l i o n s CASH & INVESTMENTS Restricted Unrestricted Statement of Revenues & Expenses Total Revenues & Expenses through July 31, 2024 are summarized below (in millions): Column1 WATER WASTEWATER RECLAMATION DISTRICT TOTAL Revenue $ 2.99 $ 0.67 $ 1.18 $ 4.84 Expense 2.96 0.65 0.99 4.60 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JULY 31, 2024 page | 3 Water Sales by Tier Water Sales for the month ending July 31, 2024 were $1.8M; 58K over staff projections for the month. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Mi l l i o n s WATER SALES BY TIER Tier 1 Tier 2 Tier 3 FY 2023-24 Projection For a more detailed presentation, operating results are presented in three ways on pages 2 through 6 of the attached financial statements for the period ending July 31, 2024. First is a one-page summary with monthly and year-to-date totals for revenue and expenses, presented by Expense Category. Second is a one-page summary with monthly and year-to-date totals for Revenues and Expense by Program. Third is a Budget-to- Actual presentation of program expense detail. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JULY 31, 2024 page | 4 Water Sales by Customer Class The table below shows the District’s water sales for the month of July 2024 by customer class. The following icons are to compliment the graph below: positive change, no change, negative change when comparing actuals versus projections. CUSTOMER CLASS ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential 1,089,653$ 994,000$ 95,653$ 10% Multi-Family 259,957 362,000 (102,043) -28% Commercial 158,052 132,000 26,052 20% Irrigation 278,569 240,000 38,569 16% TOTAL $ 1,786,231 $ 1,728,000 $ 58,231 3% The following table displays customer class by tier for the month of July 2024: CUSTOMER CLASS TIER ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential Tier 1 366,713$ 274,000$ 92,713$ 34% Residential Tier 2 599,732 591,000 8,732 1% Residential Tier 3 123,208 129,000 (5,792) -4% Multi-Family Tier 1 141,537 149,000 (7,463) -5% Multi-Family Tier 2 75,846 124,000 (48,154) -39% Multi-Family Tier 3 42,574 89,000 (46,426) -52% Commercial Tier 1 91,139 99,000 (7,861) -8% Commercial Tier 2 12,258 8,000 4,258 53% Commercial Tier 3 54,655 25,000 29,655 119% Irrigation Tier 2 164,070 175,000 (10,930) -6% Irrigation Tier 3 114,499 65,000 49,499 76% TOTAL $ 1,786,231 $ 1,728,000 $ 58,231 3% Legend - Positive Change in Actuals - Neutral Change in Actuals - Negative Change in Actuals FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JULY 31, 2024 page | 5 The chart below is a comparative illustration of Water Revenue year-to-date compared to last year’s Water Revenue year-to-date as of July. As noted in the graph, Water Revenue experienced an increase over last year. Water consumption increased 27.55 million gallons (36.8K HCF) compared to July of 2023 and water sales were up $159K for all three tiers combined. $0 $1 $1 $2 $2 $3 $3 7/31/2023 7/31/2024 Mi l l i o n s COMPARATIVE MONTHLY WATER REVENUE (WATER SALES & METER CHARGES) Meter Tier 1 Tier 2 Tier 3 Total - $2,454,842 Total - $2,643,400 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JULY 31, 2024 page | 6 Water Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Fund operating cost centers for FY 2023-24 and FY 2024-25. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JULY 31, 2024 page | 7 Wastewater Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Wastewater Fund operating cost centers for FY 2023-24 and FY 2024-25. The -$5,509 Transmission and Distribution expense in 2024-25 is the result of the reversal of year end accruals from the prior year end. This negative amount goes away in August. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING JULY 31, 2024 page | 8 Water Reclamation Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Reclamation Fund operating cost centers for FY 2023-24 and FY 2024-25. WATER WASTEWATER RECLAMATION DISTRICT TOTAL Assets: Current Assets: 01 - Cash and Cash EquivalentsCash and Cash Equivalents 3,793,992.95$ 609,865.96$ 524,870.98$ 4,928,729.89$ 02 - InvestmentsInvestments 13,162,654.50 2,141,514.00 - 15,304,168.50 03 - Accounts Receivable, NetAccounts Receivable, Net 4,800,973.76 351,017.49 667,029.83 5,819,021.08 14*05 - Other ReceivablesOther Receivables 8,865,769.53 - - 8,865,769.53 07 - Due from Sewer FundDue from Sewer Fund 1,500,000.00 - - 1,500,000.00 07.1 - Due from Reclamation FundDue from Reclamation Fund - 3,765,282.22 - 3,765,282.22 06 - Due from other GovernmentsDue from Other Governments - - 15,349,600.92 15,349,600.92 08 - InventoryInventory 1,193,857.44 6,721.16 - 1,200,578.60 09 - Prepaid ExpensesPrepaid Expenses 721,355.65 42,012.11 - 763,367.76 34,038,603.83 6,916,412.94 16,541,501.73 57,496,518.50 Non-Current Assets: 10 - Restricted Cash and Cash EquivalentsRestricted Cash and Cash Equivalents 7,691,359.55 3,943,424.42 3,630,159.00 15,264,942.97 11 - Capital Assets not being DepreciatedCapital Assets not being Depreciated 6,019,167.74 2,806,505.53 175,053,346.74 183,879,020.01 13 - Capital Assets, NetCapital Assets, Net 114,396,157.95 29,984,535.08 - 144,380,693.03 128,106,685.24 36,734,465.03 178,683,505.74 343,524,656.01 Total Assets:162,145,289.07 43,650,877.97 195,225,007.47 401,021,174.51 Deferred Outflow Of Resources 24*Deferred Charge on Refunding 553,094.33 259,347.41 - 812,441.74 25 - Deferred Outflow - PensionsDeferred Outflows - Pensions 5,825,739.90 2,496,746.10 - 8,322,486.00 168,524,123.30 46,406,971.48 195,225,007.47 410,156,102.25 Current Liabilities: 22 - PayablesAccounts Payable and Accrued Expenses 8,410,021.36 30,904.88 - 8,440,926.24 29 - Due to Water FundDue to Water Fund - 1,500,000.00 - 1,500,000.00 29.1 - Due to Sewer FundDue to Sewer Fund - - 3,765,282.22 3,765,282.22 23 - Payroll LiabilitiesAccrued Payroll and Benefits - - 4,462,664.00 4,462,664.00 15 - Customer Service DepositsCustomer Service Deposits 1,453,338.97 - - 1,453,338.97 16 - Construction Advances and RetentionsConstruction Advances and Retentions 126,527.69 2,326.48 - 128,854.17 17 - Interest PayableAccrued Interest Payable 203,649.00 24,710.75 - 228,359.75 18 - Current Portion of Compensated AbsencesCurrent Portion of Compensated Absences 305,526.87 91,983.03 35,192.47 432,702.37 19 - Current Portion of Long-Term DebtCurrent Portion of Long-Term Debt 1,526,500.28 175,000.00 - 1,701,500.28 12,025,564.17 1,824,925.14 8,263,138.69 22,113,628.00 Non-Current Liabilities: 20 - Compensated Absences, less current portionCompensated Absences, less current portion 699,910.96 221,732.16 159,191.58 1,080,834.70 28 - Net Pension LiabilityNet Pension Liability 10,431,423.00 4,470,610.00 - 14,902,033.00 21 - Long Term DebtLong Term Debt, Less Current Portion 35,593,613.64 6,540,154.00 177,015,643.00 219,149,410.64 27 - Other LiabilitiesOther Liabilities 1,173.64 - - 1,173.64 46,726,121.24 11,232,496.16 177,174,834.58 235,133,451.98 Total Liabilities:58,751,685.41 13,057,421.30 185,437,973.27 257,247,079.98 Deferred Inflows Of Resources 26 - Deferred Inflows - PensionsDeferred Inflows - Pensions 765,208.10 327,945.90 - 1,093,154.00 59,516,893.51 13,385,367.20 185,437,973.27 258,340,233.98 31 - EquityEquity 108,974,894.95 33,004,352.07 9,596,288.16 151,575,535.18 108,974,894.95 33,004,352.07 9,596,288.16 151,575,535.18 Total RevenueTotal Revenue 2,991,446.20 668,998.35 1,184,528.66 4,844,973.21 Total ExpenseTotal Expense 2,959,111.36 651,746.14 993,782.62 4,604,640.12 32,334.84 17,252.21 190,746.04 240,333.09 109,007,229.79 33,021,604.28 9,787,034.20 151,815,868.27 168,524,123.30$ 46,406,971.48$ 195,225,007.47$ 410,156,102.25$ Unaudited As of July 31, 2024 Combining Schedule of Net Position Total Equity and Current Surplus (Deficit): Total Assets and Deferred Outflows of Resources: Total Current Assets: Total Non-Current Assets: Total Liabilities, Equity and Current Surplus (Deficit): Total Beginning Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Liabilities and Deferred Inflows of Resources: Total Non-Current Liabilities: Page 1 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 - Water SalesWater Sales 1,786,229.54$ 1,786,229.54$ 17,920,000.00$ -$ -$ -$ -$ -$ 1,072,000.00$ 18,992,000.00$ 17,205,770.46$ 42 - Meter ChargesMeter Charges 861,456.47 861,456.47 10,525,000.00 - - - - - - 10,525,000.00 9,663,543.53 43 - PenaltiesPenalties 48,874.89 48,874.89 416,000.00 6,727.60 6,727.60 110,000.00 - - 60,000.00 586,000.00 530,397.51 44 - Wastewater System ChargesWastewater System Charges - - - 553,448.43 553,448.43 6,515,000.00 - - - 6,515,000.00 5,961,551.57 45 - Wastewater Treatment ChargesWastewater Treatment Charges - - - - - - 1,051,899.00 1,051,899.00 12,233,000.00 12,233,000.00 11,181,101.00 46 - Other Operating RevenueOther Operating Revenue 294,885.30 294,885.30 115,000.00 108,822.32 108,822.32 5,000.00 132,629.66 132,629.66 2,058,000.00 2,178,000.00 1,641,662.72 47 - Non Operating RevenueNon Operating Revenue - - 520,000.00 - - 100,000.00 - - 280,000.00 900,000.00 900,000.00 48 - Gain or Loss on DispositionGain or Loss on Disposition - - - - - - - - - - - 56 - BenefitsBenefits 65.68 65.68 - - - - - - - - (65.68) 68 - DepreciationDepreciation - - - - - - - - - - - Revenue Total:2,991,511.88 2,991,511.88 29,496,000.00 668,998.35 668,998.35 6,730,000.00 1,184,528.66 1,184,528.66 15,703,000.00 51,929,000.00 47,083,961.11 - - - - - - - - Expense by Category 51 - LaborLabor 232,030.56 232,030.56 6,501,500.00 59,841.55 59,841.55 1,812,500.00 30,694.59 30,694.59 1,071,000.00 9,385,000.00 9,062,433.30 52 - Temporary LaborTemporary Labor 2,290.62 2,290.62 32,900.00 981.70 981.70 14,100.00 - - - 47,000.00 43,727.68 56 - BenefitsBenefits 875,900.27 875,900.27 3,017,900.00 213,012.41 213,012.41 809,100.00 123,931.63 123,931.63 481,000.00 4,308,000.00 3,095,090.01 63 - Contract ServicesContract Services 318,603.02 318,603.02 6,042,700.00 31,607.25 31,607.25 1,942,050.00 23,829.22 23,829.22 3,379,000.00 11,363,750.00 11,013,539.73 65 - Professional DevelopmentProfessional Development 15,488.10 15,488.10 316,000.00 5,805.16 5,805.16 116,000.00 - - 20,000.00 452,000.00 430,706.74 53 - OvertimeOvertime 19,689.38 19,689.38 417,400.00 1,627.94 1,627.94 26,600.00 11,408.28 11,408.28 125,000.00 569,000.00 536,274.40 62 - Materials and SuppliesMaterials and Supplies 185,368.69 185,368.69 1,847,500.00 19,179.01 19,179.01 173,750.00 13,973.51 13,973.51 787,000.00 2,808,250.00 2,589,728.79 64 - UtilitiesUtilities 15,779.70 15,779.70 4,101,900.00 2,478.45 2,478.45 301,100.00 - - 1,821,000.00 6,224,000.00 6,205,741.85 52 - Temporary LaborTemporary Labor 2,290.62 2,290.62 32,900.00 981.70 981.70 14,100.00 - - - 47,000.00 43,727.68 67 - OtherOther 1,279,757.57 1,279,757.57 1,939,300.00 316,128.75 316,128.75 794,700.00 770,457.21 770,457.21 - 2,734,000.00 343,827.25 54 - StandbyStandby 3,073.32 3,073.32 65,000.00 102.22 102.22 2,000.00 3,050.62 3,050.62 55,000.00 122,000.00 115,773.84 61 - Water SupplyWater Supply - - 833,000.00 - - - - - - 833,000.00 833,000.00 71 - Debt ServiceDebt Service - - 2,662,000.00 - - 482,000.00 - - 7,731,000.00 10,875,000.00 10,875,000.00 81 - Capital ImprovementCapital Improvement - - 558,000.00 - - - - - 150,000.00 708,000.00 708,000.00 82 - Capital OutlayCapital Outlay 8,839.51 8,839.51 1,128,000.00 - - 242,000.00 16,437.56 16,437.56 83,000.00 1,453,000.00 1,427,722.93 83 - Accounting Income Add backAccounting Income Add back - - - - - - - - - - - 88 - Transfer from ReservesTransfer to Reserves - - - - - - - - - - - 99 - 99Transfer from Reserves - - - - - - - - - - - Expense Total:2,959,111.36 2,959,111.36 29,496,000.00 651,746.14 651,746.14 6,730,000.00 993,782.62 993,782.62 15,703,000.00 51,929,000.00 47,324,294.20 Total Surplus (Deficit):32,400.52$ 32,400.52$ -$ 17,252.21$ 17,252.21$ -$ 190,746.04$ 190,746.04$ -$ -$ (240,333.09)$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended July 31, 2024 WATER WASTEWATER DISTRICT WIDERECLAMATION Page 2 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 - Water SalesWater Sales 1,786,229.54$ 1,786,229.54$ 17,920,000.00$ -$ -$ -$ -$ -$ 1,072,000.00$ 18,992,000.00$ 17,205,770.46$ 42 - Meter ChargesMeter Charges 861,456.47 861,456.47 10,525,000.00 - - - - - - 10,525,000.00 9,663,543.53 43 - PenaltiesPenalties 48,874.89 48,874.89 416,000.00 6,727.60 6,727.60 110,000.00 - - 60,000.00 586,000.00 530,397.51 44 - Wastewater System ChargesWastewater System Charges - - - 553,448.43 553,448.43 6,515,000.00 - - - 6,515,000.00 5,961,551.57 45 - Wastewater Treatment ChargesWastewater Treatment Charges - - - - - - 1,051,899.00 1,051,899.00 12,233,000.00 12,233,000.00 11,181,101.00 46 - Other Operating RevenueOther Operating Revenue 294,885.30 294,885.30 115,000.00 108,822.32 108,822.32 5,000.00 132,629.66 132,629.66 2,058,000.00 2,178,000.00 1,641,662.72 47 - Non Operating RevenueNon Operating Revenue - - 520,000.00 - - 100,000.00 - - 280,000.00 900,000.00 900,000.00 56 - BenefitsBenefits 65.68 65.68 - - - - - - - - (65.68) Revenue Total:2,991,511.88 2,991,511.88 29,496,000.00 668,998.35 668,998.35 6,730,000.00 1,184,528.66 1,184,528.66 15,703,000.00 51,929,000.00 47,083,961.11 Program: 1000 - Governing Board Total:1000 - Governing Board 11,729.03 11,729.03 228,200.00 4,999.76 4,999.76 97,800.00 - - - 326,000.00 309,271.21 Program: 2000 - General Administration Total:2000 - General Administration 54,309.59 54,309.59 911,400.00 23,275.51 23,275.51 390,600.00 - - - 1,302,000.00 1,224,414.90 Program: 2100 - Human Resources Total:2100 - Human Resources 1,376,644.17 1,376,644.17 2,530,500.00 356,242.98 356,242.98 1,084,500.00 794,286.43 794,286.43 - 3,615,000.00 1,087,826.42 Program: 2200 - Public Affairs Total:2200 - Public Affairs 43,189.55 43,189.55 1,059,100.00 18,287.65 18,287.65 453,900.00 - - - 1,513,000.00 1,451,522.80 Program: 2300 - Conservation Total:2300 - Conservation (39,326.58) (39,326.58) 651,000.00 - - - - - - 651,000.00 690,326.58 Program: 3000 - Finance Total:3000 - Finance & Accounting 152,138.40 152,138.40 978,250.00 65,193.62 65,193.62 419,250.00 - - - 1,397,500.00 1,180,167.98 Program: 3200 - Information Technology Total:3200 - Information Technology 138,801.05 138,801.05 1,323,700.00 59,486.11 59,486.11 567,300.00 - - - 1,891,000.00 1,692,712.84 Program: 3300 - Customer Service Total:3300 - Customer Service 170,509.67 170,509.67 1,548,400.00 72,671.52 72,671.52 663,600.00 - - - 2,212,000.00 1,968,818.81 Program: 3400 - Meter Services Total:3400 - Meter Services 32,773.22 32,773.22 304,000.00 - - - - - - 304,000.00 271,226.78 Program: 4000 - Engineering Surplus Total:4000 - Engineering 30,772.00 30,772.00 924,700.00 9,752.09 9,752.09 396,300.00 - - - 1,321,000.00 1,280,475.91 Program: 5000 - Water Production Total:5000 - Water Production 286,046.25 286,046.25 6,185,000.00 - - - - - - 6,185,000.00 5,898,953.75 Program: 5100 - Water Treatment Total:5100 - Water Treatment 167,188.33 167,188.33 1,629,000.00 - - - - - - 1,629,000.00 1,461,811.67 Program: 5200 - Water Quality Total:5200 - Water Quality 63,275.65 63,275.65 605,000.00 - - - - - - 605,000.00 541,724.35 Program: 6000 - Maintenance Administration Total:6000 - Maintenance Administration 43,085.60 43,085.60 396,900.00 5,132.81 5,132.81 44,100.00 - - - 441,000.00 392,781.59 Program: 6100 - Water Maintenance Total:6100 - Water Maintenance 334,651.03 334,651.03 3,711,250.00 - - - - - - 3,711,250.00 3,376,598.97 Program: 6200 - Wastewater Collection Total:6200 - Wastewater Collection - - - (5,508.76) (5,508.76) 962,250.00 - - - 962,250.00 967,758.76 Program: 6200 - Wastewater Collection Total:6300 - Water Reclamation - - - - - - 183,058.63 183,058.63 7,739,000.00 7,739,000.00 7,555,941.37 Program: 7000 - Facilities Maintenance Total:7000 - Facilities Maintenance 77,525.84 77,525.84 1,527,400.00 29,637.51 29,637.51 654,600.00 - - - 2,182,000.00 2,074,836.65 Program: 7100 - Fleet Maintenance Total:7100 - Fleet Maintenance 7,024.73 7,024.73 634,200.00 12,575.34 12,575.34 271,800.00 - - - 906,000.00 886,399.93 Program: 8000 - Capital Total:8000 - Capital 8,839.51 8,839.51 4,348,000.00 - - 724,000.00 16,437.56 16,437.56 7,964,000.00 13,036,000.00 13,010,722.93 Total Surplus (Deficit):32,334.84$ 32,334.84$ -$ 17,252.21$ 17,252.21$ -$ 190,746.04$ 190,746.04$ -$ -$ (240,333.09)$ . WATER WASTEWATER DISTRICT WIDE Revenue and Expense Budget-to-Actual by Program Month Ended July 31, 2024 Unaudited RECLAMATION Page 3 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 - Water SalesWater Sales 1,786,229.54$ 1,786,229.54$ 17,920,000.00$ -$ -$ -$ -$ -$ 1,072,000.00$ 18,992,000.00$ 17,205,770.46$ 42 - Meter ChargesMeter Charges 861,456.47 861,456.47 10,525,000.00 - - - - - - 10,525,000.00 9,663,543.53 43 - PenaltiesPenalties 48,874.89 48,874.89 416,000.00 6,727.60 6,727.60 110,000.00 - - 60,000.00 586,000.00 530,397.51 44 - Wastewater System ChargesWastewater System Charges - - - 553,448.43 553,448.43 6,515,000.00 - - - 6,515,000.00 5,961,551.57 45 - Wastewater Treatment ChargesWastewater Treatment Charges - - - - - - 1,051,899.00 1,051,899.00 12,233,000.00 12,233,000.00 11,181,101.00 46 - Other Operating RevenueOther Operating Revenue 294,885.30 294,885.30 115,000.00 108,822.32 108,822.32 5,000.00 132,629.66 132,629.66 2,058,000.00 2,178,000.00 1,641,662.72 47 - Non Operating RevenueNon Operating Revenue - - 520,000.00 - - 100,000.00 - - 280,000.00 900,000.00 900,000.00 48 - Gain or Loss on DispositionGain or Loss on Disposition - - - - - - - - - - - 56 - BenefitsBenefits 65.68 65.68 - - - - - - - - (65.68) 68 - DepreciationDepreciation - - - - - - - - - - - Revenue Total:2,991,511.88 2,991,511.88 29,496,000.00 668,998.35 668,998.35 6,730,000.00 1,184,528.66 1,184,528.66 15,703,000.00 51,929,000.00 47,083,961.11 - - - - - - - - Program: 1000 - Governing Board - - - - - 51 - LaborLabor 5,953.51$ 5,953.51$ 99,400.00$ 2,551.49$ 2,551.49$ 42,600.00$ -$ -$ -$ 142,000.00$ 133,495.00$ 56 - BenefitsBenefits 4,151.64 4,151.64 63,000.00 1,779.27 1,779.27 27,000.00 - - - 90,000.00 84,069.09 62 - Materials and SuppliesMaterials and Supplies - - 2,100.00 - - 900.00 - - - 3,000.00 3,000.00 63 - Contract ServicesContract Services 33.40 33.40 39,200.00 - - 16,800.00 - - - 56,000.00 55,966.60 65 - Professional DevelopmentProfessional Development 1,590.48 1,590.48 24,500.00 669.00 669.00 10,500.00 - - - 35,000.00 32,740.52 Program: 1000 - Governing Board Total:11,729.03 11,729.03 228,200.00 4,999.76 4,999.76 97,800.00 - - - 326,000.00 309,271.21 - - - - - - Program: 2000 - General Administration - - - - - 51 - LaborLabor 15,497.60 15,497.60 434,700.00 6,641.80 6,641.80 186,300.00 - - - 621,000.00 598,860.60 52 - Temporary LaborTemporary Labor 1,170.62 1,170.62 21,000.00 501.70 501.70 9,000.00 - - - 30,000.00 28,327.68 53 - OvertimeOvertime 108.05 108.05 2,800.00 46.30 46.30 1,200.00 - - - 4,000.00 3,845.65 56 - BenefitsBenefits 35,383.15 35,383.15 186,900.00 15,164.22 15,164.22 80,100.00 - - - 267,000.00 216,452.63 62 - Materials and SuppliesMaterials and Supplies 7.27 7.27 4,200.00 3.11 3.11 1,800.00 - - - 6,000.00 5,989.62 63 - Contract ServicesContract Services - - 151,200.00 - - 64,800.00 - - - 216,000.00 216,000.00 64 - UtilitiesUtilities - - 2,800.00 - - 1,200.00 - - - 4,000.00 4,000.00 65 - Professional DevelopmentProfessional Development 2,142.90 2,142.90 107,800.00 918.38 918.38 46,200.00 - - - 154,000.00 150,938.72 Program: 2000 - General Administration Total:54,309.59 54,309.59 911,400.00 23,275.51 23,275.51 390,600.00 - - - 1,302,000.00 1,224,414.90 - - - - - - Program: 2100 - Human Resources - - - - - - 51 - LaborLabor 8,956.14 8,956.14 247,100.00 3,838.34 3,838.34 105,900.00 - - - 353,000.00 340,205.52 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime - - 2,100.00 - - 900.00 - - - 3,000.00 3,000.00 56 - BenefitsBenefits 67,746.64 67,746.64 149,800.00 29,034.26 29,034.26 64,200.00 - - - 214,000.00 117,219.10 62 - Materials and SuppliesMaterials and Supplies - - 3,500.00 - - 1,500.00 - - - 5,000.00 5,000.00 63 - Contract ServicesContract Services 10,020.82 10,020.82 235,200.00 4,294.62 4,294.62 100,800.00 - - - 336,000.00 321,684.56 64 - UtilitiesUtilities - - 1,400.00 - - 600.00 - - - 2,000.00 2,000.00 65 - Professional DevelopmentProfessional Development 6,876.34 6,876.34 41,300.00 2,947.01 2,947.01 17,700.00 - - - 59,000.00 49,176.65 67 - OtherOther 1,283,044.23 1,283,044.23 1,850,100.00 316,128.75 316,128.75 792,900.00 794,286.43 794,286.43 - 2,643,000.00 249,540.59 Program: 2100 - Human Resources Total:1,376,644.17 1,376,644.17 2,530,500.00 356,242.98 356,242.98 1,084,500.00 794,286.43 794,286.43 - 3,615,000.00 1,087,826.42 - - - - - - Program: 2200 - Public Affairs - - - - - - 51 - LaborLabor 10,987.73 10,987.73 361,900.00 4,709.07 4,709.07 155,100.00 - - - 517,000.00 501,303.20 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime 60.08 60.08 11,900.00 25.75 25.75 5,100.00 - - - 17,000.00 16,914.17 56 - BenefitsBenefits 23,619.51 23,619.51 107,100.00 10,122.53 10,122.53 45,900.00 - - - 153,000.00 119,257.96 62 - Materials and SuppliesMaterials and Supplies 642.97 642.97 67,200.00 275.56 275.56 28,800.00 - - - 96,000.00 95,081.47 63 - Contract ServicesContract Services 7,707.07 7,707.07 443,100.00 3,080.94 3,080.94 189,900.00 - - - 633,000.00 622,211.99 64 - UtilitiesUtilities 95.20 95.20 24,500.00 40.80 40.80 10,500.00 - - - 35,000.00 34,864.00 65 - Professional DevelopmentProfessional Development 76.99 76.99 43,400.00 33.00 33.00 18,600.00 - - - 62,000.00 61,890.01 Program: 2200 - Public Affairs Total:43,189.55 43,189.55 1,059,100.00 18,287.65 18,287.65 453,900.00 - - - 1,513,000.00 1,451,522.80 - - - - - - Program: 2300 - Conservation - - - - - - 51 - LaborLabor 4,467.20 4,467.20 123,000.00 - - - - - - 123,000.00 118,532.80 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime - - 7,000.00 - - - - - - 7,000.00 7,000.00 56 - BenefitsBenefits 753.98 753.98 44,000.00 - - - - - - 44,000.00 43,246.02 62 - Materials and SuppliesMaterials and Supplies 287.50 287.50 63,000.00 - - - - - - 63,000.00 62,712.50 63 - Contract ServicesContract Services (44,835.26) (44,835.26) 291,000.00 - - - - - - 291,000.00 335,835.26 64 - UtilitiesUtilities - - 26,000.00 - - - - - - 26,000.00 26,000.00 65 - Professional DevelopmentProfessional Development - - 12,000.00 - - - - - - 12,000.00 12,000.00 67 - OtherOther - - 85,000.00 - - - - - - 85,000.00 85,000.00 Program: 2300 - Conservation Total:(39,326.58) (39,326.58) 651,000.00 - - - - - - 651,000.00 690,326.58 Program: 3000 - Finance & Accounting - - - - - - 51 - LaborLabor 20,807.09 20,807.09 576,100.00 8,917.31 8,917.31 246,900.00 - - - 823,000.00 793,275.60 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime 805.16 805.16 9,100.00 345.07 345.07 3,900.00 - - - 13,000.00 11,849.77 56 - BenefitsBenefits 91,852.54 91,852.54 268,100.00 39,365.39 39,365.39 114,900.00 - - - 383,000.00 251,782.07 62 - Materials and SuppliesMaterials and Supplies 72.05 72.05 4,200.00 30.88 30.88 1,800.00 - - - 6,000.00 5,897.07 63 - Contract ServicesContract Services 36,564.92 36,564.92 97,650.00 15,662.11 15,662.11 41,850.00 - - - 139,500.00 87,272.97 64 - UtilitiesUtilities 24.88 24.88 2,800.00 10.67 10.67 1,200.00 - - - 4,000.00 3,964.45 65 - Professional DevelopmentProfessional Development 2,011.76 2,011.76 20,300.00 862.19 862.19 8,700.00 - - - 29,000.00 26,126.05 67 - OtherOther - - - - - - - - - - - Program: 3000 - Finance & Accounting Total:152,138.40 152,138.40 978,250.00 65,193.62 65,193.62 419,250.00 - - - 1,397,500.00 1,180,167.98 - - - - - - Month Ended July 31, 2024 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Page 4 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended July 31, 2024 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Program: 3200 - Information Technology - - - - - - 51 - LaborLabor 11,567.35 11,567.35 340,900.00 4,957.45 4,957.45 146,100.00 - - - 487,000.00 470,475.20 52 - Temporary LaborTemporary Labor 1,120.00 1,120.00 11,900.00 480.00 480.00 5,100.00 - - - 17,000.00 15,400.00 53 - OvertimeOvertime - - - - - - - - - - - 56 - BenefitsBenefits 91,159.87 91,159.87 196,000.00 39,068.48 39,068.48 84,000.00 - - - 280,000.00 149,771.65 62 - Materials and SuppliesMaterials and Supplies 10,709.94 10,709.94 59,500.00 4,589.94 4,589.94 25,500.00 - - - 85,000.00 69,700.12 63 - Contract ServicesContract Services 24,243.89 24,243.89 703,500.00 10,390.24 10,390.24 301,500.00 - - - 1,005,000.00 970,365.87 64 - UtilitiesUtilities - - 8,400.00 - - 3,600.00 - - - 12,000.00 12,000.00 65 - Professional DevelopmentProfessional Development - - 3,500.00 - - 1,500.00 - - - 5,000.00 5,000.00 Program: 3200 - Information Technology Total:138,801.05 138,801.05 1,323,700.00 59,486.11 59,486.11 567,300.00 - - - 1,891,000.00 1,692,712.84 - - - - - - Program: 3300 - Customer Service - - - - - - 51 - LaborLabor 17,446.22 17,446.22 480,200.00 7,476.98 7,476.98 205,800.00 - - - 686,000.00 661,076.80 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime 80.04 80.04 4,900.00 34.30 34.30 2,100.00 - - - 7,000.00 6,885.66 56 - BenefitsBenefits 62,486.95 62,486.95 227,500.00 26,779.83 26,779.83 97,500.00 - - - 325,000.00 235,733.22 62 - Materials and SuppliesMaterials and Supplies 37.15 37.15 4,900.00 15.92 15.92 2,100.00 - - - 7,000.00 6,946.93 63 - Contract ServicesContract Services 89,517.12 89,517.12 702,800.00 38,364.49 38,364.49 301,200.00 - - - 1,004,000.00 876,118.39 64 - UtilitiesUtilities - - 112,700.00 - - 48,300.00 - - - 161,000.00 161,000.00 65 - Professional DevelopmentProfessional Development - - 11,200.00 - - 4,800.00 - - - 16,000.00 16,000.00 67 - OtherOther 942.19 942.19 4,200.00 - - 1,800.00 - - - 6,000.00 5,057.81 Program: 3300 - Customer Service Total:170,509.67 170,509.67 1,548,400.00 72,671.52 72,671.52 663,600.00 - - - 2,212,000.00 1,968,818.81 - - - - - - Program: 3400 - Meter Services - - - - - - 51 - LaborLabor 6,584.00 6,584.00 181,000.00 - - - - - - 181,000.00 174,416.00 53 - OvertimeOvertime - - 6,000.00 - - - - - - 6,000.00 6,000.00 56 - BenefitsBenefits 26,112.63 26,112.63 104,000.00 - - - - - - 104,000.00 77,887.37 62 - Materials and SuppliesMaterials and Supplies - - 4,000.00 - - - - - - 4,000.00 4,000.00 63 - Contract ServicesContract Services 76.59 76.59 7,000.00 - - - - - - 7,000.00 6,923.41 64 - UtilitiesUtilities - - 2,000.00 - - - - - - 2,000.00 2,000.00 65 - Professional DevelopmentProfessional Development - - - - - - - - - - - Program: 3400 - Meter Services Total:32,773.22 32,773.22 304,000.00 - - - - - - 304,000.00 271,226.78 - - - - - - Program: 4000 - Engineering - - - - - - 51 - LaborLabor 14,812.52 14,812.52 460,600.00 6,348.22 6,348.22 197,400.00 - - - 658,000.00 636,839.26 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime - - - - - - - - - - - 56 - BenefitsBenefits 2,878.24 2,878.24 107,800.00 1,233.49 1,233.49 46,200.00 - - - 154,000.00 149,888.27 62 - Materials and SuppliesMaterials and Supplies - - 4,200.00 - - 1,800.00 - - - 6,000.00 6,000.00 63 - Contract ServicesContract Services 8,056.00 8,056.00 275,100.00 1,824.00 1,824.00 117,900.00 - - - 393,000.00 383,120.00 64 - UtilitiesUtilities 4,217.00 4,217.00 68,600.00 - - 29,400.00 - - - 98,000.00 93,783.00 65 - Professional DevelopmentProfessional Development 808.24 808.24 8,400.00 346.38 346.38 3,600.00 - - - 12,000.00 10,845.38 Program: 4000 - Engineering Total:30,772.00 30,772.00 924,700.00 9,752.09 9,752.09 396,300.00 - - - 1,321,000.00 1,280,475.91 - - - - - - Program: 5000 - Water Production - - - - - - 51 - LaborLabor 32,058.22 32,058.22 884,000.00 - - - - - - 884,000.00 851,941.78 53 - OvertimeOvertime 767.77 767.77 92,000.00 - - - - - - 92,000.00 91,232.23 54 - StandbyStandby 1,434.28 1,434.28 47,000.00 - - - - - - 47,000.00 45,565.72 56 - BenefitsBenefits 122,893.25 122,893.25 396,000.00 - - - - - - 396,000.00 273,106.75 61 - Water SupplyWater Supply - - 833,000.00 - - - - - - 833,000.00 833,000.00 62 - Materials and SuppliesMaterials and Supplies 28,835.37 28,835.37 288,000.00 - - - - - - 288,000.00 259,164.63 63 - Contract ServicesContract Services 99,501.17 99,501.17 535,000.00 - - - - - - 535,000.00 435,498.83 64 - UtilitiesUtilities - - 3,099,000.00 - - - - - - 3,099,000.00 3,099,000.00 65 - Professional DevelopmentProfessional Development 556.19 556.19 11,000.00 - - - - - - 11,000.00 10,443.81 Program: 5000 - Water Production Total:286,046.25 286,046.25 6,185,000.00 - - - - - - 6,185,000.00 5,898,953.75 - - - - - - Program: 5100 - Water Treatment - - - - - - 51 - LaborLabor 11,006.40 11,006.40 304,000.00 - - - - - - 304,000.00 292,993.60 53 - OvertimeOvertime 3,092.72 3,092.72 39,000.00 - - - - - - 39,000.00 35,907.28 56 - BenefitsBenefits 85,604.48 85,604.48 179,000.00 - - - - - - 179,000.00 93,395.52 62 - Materials and SuppliesMaterials and Supplies 40,064.87 40,064.87 200,000.00 - - - - - - 200,000.00 159,935.13 63 - Contract ServicesContract Services 27,419.86 27,419.86 664,000.00 - - - - - - 664,000.00 636,580.14 64 - UtilitiesUtilities - - 243,000.00 - - - - - - 243,000.00 243,000.00 Program: 5100 - Water Treatment Total:167,188.33 167,188.33 1,629,000.00 - - - - - - 1,629,000.00 1,461,811.67 - - - - - - Program: 5200 - Water Quality - - - - - - 51 - LaborLabor 10,048.80 10,048.80 279,000.00 - - - - - - 279,000.00 268,951.20 53 - OvertimeOvertime 60.33 60.33 12,000.00 - - - - - - 12,000.00 11,939.67 56 - BenefitsBenefits 42,055.42 42,055.42 102,000.00 - - - - - - 102,000.00 59,944.58 62 - Materials and SuppliesMaterials and Supplies 2,476.19 2,476.19 25,000.00 - - - - - - 25,000.00 22,523.81 63 - Contract ServicesContract Services 8,067.58 8,067.58 178,000.00 - - - - - - 178,000.00 169,932.42 64 - UtilitiesUtilities 193.33 193.33 2,000.00 - - - - - - 2,000.00 1,806.67 65 - Professional DevelopmentProfessional Development 374.00 374.00 7,000.00 - - - - - - 7,000.00 6,626.00 Program: 5200 - Water Quality Total:63,275.65 63,275.65 605,000.00 - - - - - - 605,000.00 541,724.35 - - - - - - Page 5 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended July 31, 2024 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Program: 6000 - Maintenance Administration - - - - - - 51 - LaborLabor 7,397.82 7,397.82 196,200.00 821.98 821.98 21,800.00 - - - 218,000.00 209,780.20 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime - - 1,800.00 - - 200.00 - - - 2,000.00 2,000.00 54 - StandbyStandby 1,639.04 1,639.04 18,000.00 102.22 102.22 2,000.00 - - - 20,000.00 18,258.74 56 - BenefitsBenefits 36,932.09 36,932.09 118,800.00 4,099.22 4,099.22 13,200.00 - - - 132,000.00 90,968.69 62 - Materials and SuppliesMaterials and Supplies 145.38 145.38 2,700.00 - - 300.00 - - - 3,000.00 2,854.62 63 - Contract ServicesContract Services 720.78 720.78 1,800.00 80.09 80.09 200.00 - - - 2,000.00 1,199.13 64 - UtilitiesUtilities 0.89 0.89 36,900.00 0.10 0.10 4,100.00 - - - 41,000.00 40,999.01 65 - Professional DevelopmentProfessional Development 478.45 478.45 20,700.00 29.20 29.20 2,300.00 - - - 23,000.00 22,492.35 67 - OtherOther (4,228.85) (4,228.85) - - 4,228.85 Program: 6000 - Maintenance Administration Total:43,085.60 43,085.60 396,900.00 5,132.81 5,132.81 44,100.00 - - - 441,000.00 392,781.59 - - - - - - Program: 6100 - Water Maintenance - - - - - - 51 - LaborLabor 47,897.32 47,897.32 1,280,000.00 - - - - - - 1,280,000.00 1,232,102.68 53 - OvertimeOvertime 14,130.42 14,130.42 219,000.00 - - - - - - 219,000.00 204,869.58 56 - BenefitsBenefits 152,995.01 152,995.01 630,000.00 - - - - - - 630,000.00 477,004.99 62 - Materials and SuppliesMaterials and Supplies 92,257.92 92,257.92 947,000.00 - - - - - - 947,000.00 854,742.08 63 - Contract ServicesContract Services 24,652.20 24,652.20 635,250.00 - - - - - - 635,250.00 610,597.80 64 - UtilitiesUtilities 2,718.16 2,718.16 - - - - - - - - (2,718.16) Program: 6100 - Water Maintenance Total:334,651.03 334,651.03 3,711,250.00 - - - - - - 3,711,250.00 3,376,598.97 - - - - - - Program: 6200 - Wastewater Collection - - - - - - 51 - LaborLabor - - - 10,774.87 10,774.87 396,000.00 - - - 396,000.00 385,225.13 53 - OvertimeOvertime - - - 925.88 925.88 9,000.00 - - - 9,000.00 8,074.12 56 - BenefitsBenefits - - - 33,791.31 33,791.31 177,000.00 - - - 177,000.00 143,208.69 62 - Materials and SuppliesMaterials and Supplies - - - 10,098.42 10,098.42 37,250.00 - - - 37,250.00 27,151.58 Wastewater Treatment - - - - - 7,610,000.00 - - - 7,610,000.00 7,610,000.00 63 - Contract ServicesContract Services - - - (61,099.24) (61,099.24) (7,267,000.00) - - - (7,267,000.00) (7,205,900.76) Program: 6200 - Wastewater Collection Total:- - - (5,508.76) (5,508.76) 962,250.00 - - - 962,250.00 967,758.76 - - - - - - Program: 6300 - Water Reclamation - - - - - - 51 - LaborLabor - - - - - - 30,694.59 30,694.59 1,071,000.00 1,071,000.00 1,040,305.41 53 - OvertimeOvertime - - - - - - 11,408.28 11,408.28 125,000.00 125,000.00 113,591.72 54 - StandbyStandby - - - - - - 3,050.62 3,050.62 55,000.00 55,000.00 51,949.38 56 - BenefitsBenefits - - - - - - 123,931.63 123,931.63 481,000.00 481,000.00 357,068.37 62 - Materials and SuppliesMaterials and Supplies - - - - - - 13,973.51 13,973.51 787,000.00 787,000.00 773,026.49 63 - Contract ServicesContract Services - - - - - - - - 3,379,000.00 3,379,000.00 3,379,000.00 64 - UtilitiesUtilities - - - - - - - - 1,821,000.00 1,821,000.00 1,821,000.00 65 - Professional DevelopmentProfessional Development - - - - - - - - 20,000.00 20,000.00 20,000.00 Program: 6300 - Water Reclamation Total:- - - - - - 183,058.63 183,058.63 7,739,000.00 7,739,000.00 7,555,941.37 - - - - - - Program: 7000 - Facilities Maintenance - - - - - - 51 - LaborLabor 6,025.98 6,025.98 212,800.00 2,582.62 2,582.62 91,200.00 - - - 304,000.00 295,391.40 53 - OvertimeOvertime 137.40 137.40 9,800.00 58.89 58.89 4,200.00 - - - 14,000.00 13,803.71 56 - BenefitsBenefits 28,883.72 28,883.72 113,400.00 12,441.49 12,441.49 48,600.00 - - - 162,000.00 120,674.79 62 - Materials and SuppliesMaterials and Supplies 2,411.28 2,411.28 42,000.00 990.08 990.08 18,000.00 - - - 60,000.00 56,598.64 63 - Contract ServicesContract Services 34,507.74 34,507.74 872,200.00 12,656.08 12,656.08 373,800.00 - - - 1,246,000.00 1,198,836.18 64 - UtilitiesUtilities 4,986.97 4,986.97 275,100.00 908.35 908.35 117,900.00 - - - 393,000.00 387,104.68 65 - Professional DevelopmentProfessional Development 572.75 572.75 2,100.00 - - 900.00 - - - 3,000.00 2,427.25 Program: 7000 - Facilities Maintenance Total:77,525.84 77,525.84 1,527,400.00 29,637.51 29,637.51 654,600.00 - - - 2,182,000.00 2,074,836.65 - - - Program: 7100 - Fleet Maintenance - - - - - - 51 - LaborLabor 2,807.28 2,807.28 73,500.00 1,203.12 1,203.12 31,500.00 - - - 105,000.00 100,989.60 53 - OvertimeOvertime 447.41 447.41 2,100.00 191.75 191.75 900.00 - - - 3,000.00 2,360.84 56 - BenefitsBenefits 456.83 456.83 22,400.00 132.92 132.92 9,600.00 - - - 32,000.00 31,410.25 62 - Materials and SuppliesMaterials and Supplies 7,420.80 7,420.80 126,000.00 3,175.10 3,175.10 54,000.00 - - - 180,000.00 169,404.10 63 - Contract ServicesContract Services (7,650.86) (7,650.86) 210,700.00 6,353.92 6,353.92 90,300.00 - - - 301,000.00 302,296.94 64 - UtilitiesUtilities 3,543.27 3,543.27 196,700.00 1,518.53 1,518.53 84,300.00 - - - 281,000.00 275,938.20 65 - Professional DevelopmentProfessional Development - - 2,800.00 - - 1,200.00 - - - 4,000.00 4,000.00 Program: 7100 - Fleet Maintenance Total:7,024.73 7,024.73 634,200.00 12,575.34 12,575.34 271,800.00 - - - 906,000.00 886,399.93 - - - Program: 8000 - Capital - - - - - 11 - Capital Assets not being DepreciatedCapital Assets not being Depreciated - - - - - - - - - - - 71 - Debt ServiceDebt Service - - 2,662,000.00 - - 482,000.00 - - 7,731,000.00 10,875,000.00 10,875,000.00 81 - Capital ImprovementCapital Improvement - - 558,000.00 - - - - - 150,000.00 708,000.00 708,000.00 82 - Capital OutlayCapital Outlay 8,839.51 8,839.51 1,128,000.00 - - 242,000.00 16,437.56 16,437.56 83,000.00 1,453,000.00 1,427,722.93 83 - Accounting Income Add backAccounting Income Add back - - - - - - - - - - - 88 - Transfer from ReservesTransfer to Reserves - - - - - - - - - - - 99 - 99Transfer from Reserves - - - - - - - - - - - Program: 8000 - Capital Total:8,839.51 8,839.51 4,348,000.00 - - 724,000.00 16,437.56 16,437.56 7,964,000.00 13,036,000.00 13,010,722.93 Total Surplus (Deficit):32,334.84$ 32,334.84$ -$ 17,252.21$ 17,252.21$ -$ 190,746.04$ 190,746.04$ -$ -$ (240,333.09)$ Page 6 of 6 Agenda Item #2e November 13, 20241 Meeting Date: November 13, 2024 Agenda Item #2e Consent Item 1 2 4 2 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Accept and File Financial Statements for August 2024 RECOMMENDATION That the Board of Directors accept and file the attached financial statements as of, and for the period ended, August 31, 2024. BACKGROUND / ANALYSIS The East Valley Water District adopted an annual budget on June 26, 2024 for fiscal year 2024-25. In accordance with District Administrative Policy 7.7, the Chief Financial Officer provides regular budget updates to the Board of Directors (Board). Included herewith for the Board’s review is a summary of the District’s financial results, as of August 31, 2024. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer Agenda Item #2e November 13, 20242 Meeting Date: November 13, 2024 Agenda Item #2e Consent Item 1 2 4 2 ATTACHMENTS 1. August 2024 Financial Statement Monthly Review 2. August 2024 Financial Statements FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING AUGUST 31, 2024 page | 1 The following is a highlight summary of the District’s financial results as of August 31, 2024. Please note all values presented are in millions (unless otherwise noted). Statement of Net Position Total assets at August 31, 2024 are $409.11 million. CLASSIFICATION WATER WASTEWATER RECLAMATION DISTRICT TOTAL Cash and Investments $ 26.27 $ 6.68 $ 4.16 $ 37.11 Utility Plant, Net 114.40 29.98 - 144.38 Other Assets 28.68 8.40 190.54 227.62 Current Liabilities 11.03 0.32 6.93 18.28 Long Term Liabilities 46.66 11.22 177.17 235.05 Beginning Net Position 108.97 33.00 9.60 151.57 Change in Equity 1.92 0.19 0.99 3.10 TOTAL NET $ 110.89 $ 33.19 $ 10.59 $ 154.67 Cash and Investments Cash and Investments are $37.11 million for the month of August, an increase of $1.61 million from the prior month. In August the District received claim #31 in the amount of $473K. The District’s Due from Other Governments includes claim #32 to the State of California for the SRF Loan Proceeds as well as Retention Receivables from SBVMWD bringing the ending balance as of August 31, 2024 to $14.8 million. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING AUGUST 31, 2024 page | 2 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 Mi l l i o n s CASH & INVESTMENTS Restricted Unrestricted Statement of Revenues & Expenses Total Revenues & Expenses through August 31, 2024 are summarized below (in millions): Column1 WATER WASTEWATER RECLAMATION DISTRICT TOTAL Revenue $ 6.39 $ 1.25 $ 2.33 $ 9.97 Expense 4.46 1.06 1.35 6.87 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING AUGUST 31, 2024 page | 3 Water Sales by Tier Water Sales for the month ending August 31, 2024 were $2.6M; 585K over staff projections for the month. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Mi l l i o n s WATER SALES BY TIER Tier 1 Tier 2 Tier 3 FY 2023-24 Projection For a more detailed presentation, operating results are presented in three ways on pages 2 through 6 of the attached financial statements for the period ending August 31, 2024. First is a one-page summary with monthly and year-to-date totals for revenue and expenses, presented by Expense Category. Second is a one-page summary with monthly and year-to-date totals for Revenues and Expense by Program. Third is a Budget-to- Actual presentation of program expense detail. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING AUGUST 31, 2024 page | 4 Water Sales by Customer Class The table below shows the District’s water sales for the month of August 2024 by customer class. The following icons are to compliment the graph below: positive change, no change, negative change when comparing actuals versus projections. CUSTOMER CLASS ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential 1,534,186$ 1,215,000$ 319,186$ 26% Multi-Family 392,157 359,000 33,157 9% Commercial 223,751 176,000 47,751 27% Irrigation 437,526 253,000 184,526 73% TOTAL $ 2,587,620 $ 2,003,000 $ 584,620 29% The following table displays customer class by tier for the month of August 2024: CUSTOMER CLASS TIER ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential Tier 1 452,732$ 463,000$ (10,268)$ -2% Residential Tier 2 853,022 607,000 246,022 41% Residential Tier 3 228,432 145,000 83,432 58% Multi-Family Tier 1 182,576 149,000 33,576 23% Multi-Family Tier 2 123,247 107,000 16,247 15% Multi-Family Tier 3 86,334 103,000 (16,666) -16% Commercial Tier 1 109,349 106,000 3,349 3% Commercial Tier 2 15,298 12,000 3,298 27% Commercial Tier 3 99,104 58,000 41,104 71% Irrigation Tier 2 238,010 175,000 63,010 36% Irrigation Tier 3 199,516 78,000 121,516 156% TOTAL $ 2,587,620 $ 2,003,000 $ 584,620 29% Legend - Positive Change in Actuals - Neutral Change in Actuals - Negative Change in Actuals FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING AUGUST 31, 2024 page | 5 The chart below is a comparative illustration of Water Revenue year-to-date compared to last year’s Water Revenue year-to-date as of August. As noted in the graph, Water Revenue experienced an increase over last year. Water consumption increased 177.14 million gallons (236.8K HCF) compared to August of 2023 and water sales were up $753K for all three tiers combined. $0 $1 $2 $3 $4 $5 $6 $7 8/31/2023 8/31/2024 Mi l l i o n s COMPARATIVE MONTHLY WATER REVENUE (WATER SALES & METER CHARGES) Meter Tier 1 Tier 2 Tier 3 Total - $5,281,618 Total - $6,093,319 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING AUGUST 31, 2024 page | 6 Water Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Fund operating cost centers for FY 2023-24 and FY 2024-25. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING AUGUST 31, 2024 page | 7 Wastewater Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Wastewater Fund operating cost centers for FY 2023-24 and FY 2024-25. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING AUGUST 31, 2024 page | 8 Water Reclamation Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Reclamation Fund operating cost centers for FY 2023-24 and FY 2024-25. WATER WASTEWATER RECLAMATION DISTRICT TOTAL Assets: Current Assets: 01 - Cash and Cash EquivalentsCash and Cash Equivalents 5,417,925.98$ 597,923.30$ 524,870.98$ 6,540,720.26$ 02 - InvestmentsInvestments 13,162,654.50 2,141,514.00 - 15,304,168.50 03 - Accounts Receivable, NetAccounts Receivable, Net 5,527,715.95 351,017.49 667,029.83 6,545,763.27 14*05 - Other ReceivablesOther Receivables 8,599,886.85 - - 8,599,886.85 07.1 - Due from Reclamation FundDue from Reclamation Fund - 2,433,410.66 - 2,433,410.66 06 - Due from other GovernmentsDue from Other Governments - - 14,814,653.07 14,814,653.07 08 - InventoryInventory 1,355,248.15 6,721.16 - 1,361,969.31 09 - Prepaid ExpensesPrepaid Expenses 721,355.65 42,012.11 - 763,367.76 34,784,787.08 5,572,598.72 16,006,553.88 56,363,939.68 Non-Current Assets: 10 - Restricted Cash and Cash EquivalentsRestricted Cash and Cash Equivalents 7,692,339.89 3,943,424.42 3,630,159.00 15,265,923.31 11 - Capital Assets not being DepreciatedCapital Assets not being Depreciated 6,094,989.81 2,811,495.53 175,053,346.74 183,959,832.08 13 - Capital Assets, NetCapital Assets, Net 114,396,157.95 29,984,535.08 - 144,380,693.03 128,183,487.65 36,739,455.03 178,683,505.74 343,606,448.42 Total Assets:162,968,274.73 42,312,053.75 194,690,059.62 399,970,388.10 Deferred Outflow Of Resources 24*Deferred Charge on Refunding 553,094.33 259,347.41 - 812,441.74 25 - Deferred Outflow - PensionsDeferred Outflows - Pensions 5,825,739.90 2,496,746.10 - 8,322,486.00 169,347,108.96 45,068,147.26 194,690,059.62 409,105,315.84 Current Liabilities: 22 - PayablesAccounts Payable and Accrued Expenses 7,418,940.95 30,904.88 - 7,449,845.83 29 - Due to Water FundDue to Water Fund - - - - 29.1 - Due to Sewer FundDue to Sewer Fund - - 2,433,410.66 2,433,410.66 23 - Payroll LiabilitiesAccrued Payroll and Benefits (6,889.47) - 4,462,664.00 4,455,774.53 15 - Customer Service DepositsCustomer Service Deposits 1,454,210.51 - - 1,454,210.51 16 - Construction Advances and RetentionsConstruction Advances and Retentions 126,527.69 2,326.48 - 128,854.17 17 - Interest PayableAccrued Interest Payable 203,649.00 24,710.75 - 228,359.75 18 - Current Portion of Compensated AbsencesCurrent Portion of Compensated Absences 305,526.87 91,983.03 35,192.47 432,702.37 19 - Current Portion of Long-Term DebtCurrent Portion of Long-Term Debt 1,526,500.28 175,000.00 - 1,701,500.28 11,028,465.83 324,925.14 6,931,267.13 18,284,658.10 Non-Current Liabilities: 20 - Compensated Absences, less current portionCompensated Absences, less current portion 672,140.16 209,135.45 159,191.58 1,040,467.19 28 - Net Pension LiabilityNet Pension Liability 10,389,212.99 4,470,610.00 - 14,859,822.99 21 - Long Term DebtLong Term Debt, Less Current Portion 35,593,613.64 6,540,154.00 177,015,643.00 219,149,410.64 27 - Other LiabilitiesOther Liabilities 1,173.64 - - 1,173.64 46,656,140.43 11,219,899.45 177,174,834.58 235,050,874.46 Total Liabilities:57,684,606.26 11,544,824.59 184,106,101.71 253,335,532.56 Deferred Inflows Of Resources 26 - Deferred Inflows - PensionsDeferred Inflows - Pensions 765,208.10 327,945.90 - 1,093,154.00 58,449,814.36 11,872,770.49 184,106,101.71 254,428,686.56 31 - EquityEquity 108,974,894.95 33,004,352.07 9,596,288.16 151,575,535.18 108,974,894.95 33,004,352.07 9,596,288.16 151,575,535.18 Total RevenueTotal Revenue 6,386,482.58 1,254,094.50 2,334,179.44 9,974,756.52 Total ExpenseTotal Expense 4,464,082.93 1,063,069.80 1,346,509.69 6,873,662.42 1,922,399.65 191,024.70 987,669.75 3,101,094.10 110,897,294.60 33,195,376.77 10,583,957.91 154,676,629.28 169,347,108.96$ 45,068,147.26$ 194,690,059.62$ 409,105,315.84$ Unaudited As of August 31, 2024 Combining Schedule of Net Position Total Equity and Current Surplus (Deficit): Total Assets and Deferred Outflows of Resources: Total Current Assets: Total Non-Current Assets: Total Liabilities, Equity and Current Surplus (Deficit): Total Beginning Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Liabilities and Deferred Inflows of Resources: Total Non-Current Liabilities: Page 1 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 - Water SalesWater Sales 2,587,618.87$ 4,373,848.41$ 17,920,000.00$ -$ -$ -$ -$ -$ 1,072,000.00$ 18,992,000.00$ 14,618,151.59$ 42 - Meter ChargesMeter Charges 862,339.60 1,723,796.07 10,525,000.00 - - - - - - 10,525,000.00 8,801,203.93 43 - PenaltiesPenalties 45,172.17 94,047.06 416,000.00 4,837.45 11,565.05 110,000.00 - - 60,000.00 586,000.00 480,387.89 44 - Wastewater System ChargesWastewater System Charges - - - 572,832.53 1,126,280.96 6,515,000.00 - - - 6,515,000.00 5,388,719.04 45 - Wastewater Treatment ChargesWastewater Treatment Charges - - - - - - 1,126,036.02 2,177,935.02 12,233,000.00 12,233,000.00 10,055,064.98 46 - Other Operating RevenueOther Operating Revenue (105,439.80) 189,445.50 115,000.00 7,426.17 116,248.49 5,000.00 23,614.76 156,244.42 2,058,000.00 2,178,000.00 1,716,061.59 47 - Non Operating RevenueNon Operating Revenue 5,345.54 5,345.54 520,000.00 - - 100,000.00 - - 280,000.00 900,000.00 894,654.46 48 - Gain or Loss on DispositionGain or Loss on Disposition - - - - - - - - - - - 56 - BenefitsBenefits - 65.68 - - - - - - - - (65.68) 68 - DepreciationDepreciation - - - - - - - - - - - Revenue Total:3,395,036.38 6,386,548.26 29,496,000.00 585,096.15 1,254,094.50 6,730,000.00 1,149,650.78 2,334,179.44 15,703,000.00 51,929,000.00 41,954,177.80 - - - - - - - - Expense by Category 51 - LaborLabor 684,840.97 916,871.53 6,501,500.00 181,860.52 241,702.07 1,812,500.00 108,310.78 139,005.37 1,071,000.00 9,385,000.00 8,087,421.03 52 - Temporary LaborTemporary Labor 4,491.72 6,782.34 32,900.00 1,925.04 2,906.74 14,100.00 - - - 47,000.00 37,310.92 56 - BenefitsBenefits 186,138.80 1,062,104.75 3,017,900.00 46,504.64 259,517.05 809,100.00 29,982.05 153,913.68 481,000.00 4,308,000.00 2,832,464.52 63 - Contract ServicesContract Services 470,119.09 788,722.11 6,042,700.00 114,241.16 145,848.41 1,942,050.00 159,945.14 136,115.92 3,379,000.00 11,363,750.00 10,316,892.78 65 - Professional DevelopmentProfessional Development 7,642.47 23,130.57 316,000.00 2,136.00 7,941.16 116,000.00 - - 20,000.00 452,000.00 420,928.27 53 - OvertimeOvertime 73,419.42 93,108.80 417,400.00 2,126.90 3,754.84 26,600.00 34,522.65 45,930.93 125,000.00 569,000.00 426,205.43 62 - Materials and SuppliesMaterials and Supplies 92,065.65 277,434.34 1,847,500.00 19,371.00 38,550.01 173,750.00 16,570.99 30,544.50 787,000.00 2,808,250.00 2,461,721.15 64 - UtilitiesUtilities 81,438.90 97,218.60 4,101,900.00 11,228.49 13,706.94 301,100.00 18,952.84 18,952.84 1,821,000.00 6,224,000.00 6,094,121.62 52 - Temporary LaborTemporary Labor 4,491.72 6,782.34 32,900.00 1,925.04 2,906.74 14,100.00 - - - 47,000.00 37,310.92 67 - OtherOther (245,617.77) 1,034,139.80 1,939,300.00 3,319.83 319,448.58 794,700.00 (23,829.22) 794,286.43 - 2,734,000.00 562,295.97 54 - StandbyStandby 8,614.47 11,687.79 65,000.00 385.95 488.17 2,000.00 8,271.84 11,322.46 55,000.00 122,000.00 98,501.58 61 - Water SupplyWater Supply - - 833,000.00 - - - - - - 833,000.00 833,000.00 71 - Debt ServiceDebt Service - - 2,662,000.00 - - 482,000.00 - - 7,731,000.00 10,875,000.00 10,875,000.00 81 - Capital ImprovementCapital Improvement 18,340.33 18,340.33 558,000.00 - - - - - 150,000.00 708,000.00 689,659.67 82 - Capital OutlayCapital Outlay 137,326.13 146,165.64 1,128,000.00 26,299.09 26,299.09 242,000.00 - 16,437.56 83,000.00 1,453,000.00 1,264,097.71 83 - Accounting Income Add backAccounting Income Add back (18,340.33) (18,340.33) - - - - - - - - 18,340.33 88 - Transfer from ReservesTransfer to Reserves - - - - - - - - - - - 99 - 99Transfer from Reserves - - - - - - - - - - - Expense Total:1,504,971.57 4,464,148.61 29,496,000.00 411,323.66 1,063,069.80 6,730,000.00 352,727.07 1,346,509.69 15,703,000.00 51,929,000.00 45,055,271.90 Total Surplus (Deficit):1,890,064.81$ 1,922,399.65$ -$ 173,772.49$ 191,024.70$ -$ 796,923.71$ 987,669.75$ -$ -$ (3,101,094.10)$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended August 31, 2024 WATER WASTEWATER DISTRICT WIDERECLAMATION Page 2 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 - Water SalesWater Sales 2,587,618.87$ 4,373,848.41$ 17,920,000.00$ -$ -$ -$ -$ -$ 1,072,000.00$ 18,992,000.00$ 14,618,151.59$ 42 - Meter ChargesMeter Charges 862,339.60 1,723,796.07 10,525,000.00 - - - - - - 10,525,000.00 8,801,203.93 43 - PenaltiesPenalties 45,172.17 94,047.06 416,000.00 4,837.45 11,565.05 110,000.00 - - 60,000.00 586,000.00 480,387.89 44 - Wastewater System ChargesWastewater System Charges - - - 572,832.53 1,126,280.96 6,515,000.00 - - - 6,515,000.00 5,388,719.04 45 - Wastewater Treatment ChargesWastewater Treatment Charges - - - - - - 1,126,036.02 2,177,935.02 12,233,000.00 12,233,000.00 10,055,064.98 46 - Other Operating RevenueOther Operating Revenue (105,439.80) 189,445.50 115,000.00 7,426.17 116,248.49 5,000.00 23,614.76 156,244.42 2,058,000.00 2,178,000.00 1,716,061.59 47 - Non Operating RevenueNon Operating Revenue 5,345.54 5,345.54 520,000.00 - - 100,000.00 - - 280,000.00 900,000.00 894,654.46 56 - BenefitsBenefits - 65.68 - - - - - - - - (65.68) Revenue Total:3,395,036.38 6,386,548.26 29,496,000.00 585,096.15 1,254,094.50 6,730,000.00 1,149,650.78 2,334,179.44 15,703,000.00 51,929,000.00 41,954,177.80 Program: 1000 - Governing Board Total:1000 - Governing Board 11,123.78 22,852.81 228,200.00 4,744.41 9,744.17 97,800.00 - - - 326,000.00 293,403.02 Program: 2000 - General Administration Total:2000 - General Administration 73,532.55 127,842.14 911,400.00 30,458.31 53,733.82 390,600.00 - - - 1,302,000.00 1,120,424.04 Program: 2100 - Human Resources Total:2100 - Human Resources 43,555.45 1,420,199.62 2,530,500.00 18,634.54 374,877.52 1,084,500.00 - 818,115.65 - 3,615,000.00 1,001,807.21 Program: 2200 - Public Affairs Total:2200 - Public Affairs 72,377.83 115,567.38 1,059,100.00 20,959.08 39,246.73 453,900.00 - - - 1,513,000.00 1,358,185.89 Program: 2300 - Conservation Total:2300 - Conservation (171,493.41) (210,819.99) 651,000.00 - - - - - - 651,000.00 861,819.99 Program: 3000 - Finance Total:3000 - Finance & Accounting 78,909.27 231,047.67 978,250.00 35,335.76 100,529.38 419,250.00 - - - 1,397,500.00 1,065,922.95 Program: 3200 - Information Technology Total:3200 - Information Technology 168,343.45 307,144.50 1,323,700.00 72,147.19 131,633.30 567,300.00 - - - 1,891,000.00 1,452,222.20 Program: 3300 - Customer Service Total:3300 - Customer Service 116,928.09 287,437.76 1,548,400.00 49,744.82 122,416.34 663,600.00 - - - 2,212,000.00 1,802,145.90 Program: 3400 - Meter Services Total:3400 - Meter Services 27,104.25 59,877.47 304,000.00 - - - - - - 304,000.00 244,122.53 Program: 4000 - Engineering Surplus Total:4000 - Engineering 63,495.98 94,267.98 924,700.00 26,505.76 36,257.85 396,300.00 - - - 1,321,000.00 1,190,474.17 Program: 5000 - Water Production Total:5000 - Water Production 160,815.87 446,862.12 6,185,000.00 - - - - - - 6,185,000.00 5,738,137.88 Program: 5100 - Water Treatment Total:5100 - Water Treatment 61,148.35 228,336.68 1,629,000.00 - - - - - - 1,629,000.00 1,400,663.32 Program: 5200 - Water Quality Total:5200 - Water Quality 39,578.14 102,853.79 605,000.00 - - - - - - 605,000.00 502,146.21 Program: 6000 - Maintenance Administration Total:6000 - Maintenance Administration 36,905.52 79,991.12 396,900.00 3,973.33 9,106.14 44,100.00 - - - 441,000.00 351,902.74 Program: 6100 - Water Maintenance Total:6100 - Water Maintenance 376,031.16 710,682.19 3,711,250.00 - - - - - - 3,711,250.00 3,000,567.81 Program: 6200 - Wastewater Collection Total:6200 - Wastewater Collection - - - 58,616.04 53,107.28 962,250.00 - - - 962,250.00 909,142.72 Program: 6200 - Wastewater Collection Total:6300 - Water Reclamation - - - - - - 352,727.07 511,956.48 7,739,000.00 7,739,000.00 7,227,043.52 Program: 7000 - Facilities Maintenance Total:7000 - Facilities Maintenance 151,910.63 229,436.47 1,527,400.00 39,314.47 68,951.98 654,600.00 - - - 2,182,000.00 1,883,611.55 Program: 7100 - Fleet Maintenance Total:7100 - Fleet Maintenance 57,378.53 64,403.26 634,200.00 24,590.86 37,166.20 271,800.00 - - - 906,000.00 804,430.54 Program: 8000 - Capital Total:8000 - Capital 137,326.13 146,165.64 4,348,000.00 26,299.09 26,299.09 724,000.00 - 16,437.56 7,964,000.00 13,036,000.00 12,847,097.71 Total Surplus (Deficit):1,890,064.81$ 1,922,399.65$ -$ 173,772.49$ 191,024.70$ -$ 796,923.71$ 987,669.75$ -$ -$ (3,101,094.10)$ . WATER WASTEWATER DISTRICT WIDE Revenue and Expense Budget-to-Actual by Program Month Ended August 31, 2024 Unaudited RECLAMATION Page 3 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 - Water SalesWater Sales 2,587,618.87$ 4,373,848.41$ 17,920,000.00$ -$ -$ -$ -$ -$ 1,072,000.00$ 18,992,000.00$ 14,618,151.59$ 42 - Meter ChargesMeter Charges 862,339.60 1,723,796.07 10,525,000.00 - - - - - - 10,525,000.00 8,801,203.93 43 - PenaltiesPenalties 45,172.17 94,047.06 416,000.00 4,837.45 11,565.05 110,000.00 - - 60,000.00 586,000.00 480,387.89 44 - Wastewater System ChargesWastewater System Charges - - - 572,832.53 1,126,280.96 6,515,000.00 - - - 6,515,000.00 5,388,719.04 45 - Wastewater Treatment ChargesWastewater Treatment Charges - - - - - - 1,126,036.02 2,177,935.02 12,233,000.00 12,233,000.00 10,055,064.98 46 - Other Operating RevenueOther Operating Revenue (105,439.80) 189,445.50 115,000.00 7,426.17 116,248.49 5,000.00 23,614.76 156,244.42 2,058,000.00 2,178,000.00 1,716,061.59 47 - Non Operating RevenueNon Operating Revenue 5,345.54 5,345.54 520,000.00 - - 100,000.00 - - 280,000.00 900,000.00 894,654.46 48 - Gain or Loss on DispositionGain or Loss on Disposition - - - - - - - - - - - 56 - BenefitsBenefits - 65.68 - - - - - - - - (65.68) 68 - DepreciationDepreciation - - - - - - - - - - - Revenue Total:3,395,036.38 6,386,548.26 29,496,000.00 585,096.15 1,254,094.50 6,730,000.00 1,149,650.78 2,334,179.44 15,703,000.00 51,929,000.00 41,954,177.80 - - - - - - - - Program: 1000 - Governing Board - - - - - 51 - LaborLabor 6,772.04$ 12,725.55$ 99,400.00$ 2,902.30$ 5,453.79$ 42,600.00$ -$ -$ -$ 142,000.00$ 123,820.66$ 56 - BenefitsBenefits 4,214.27 8,365.91 63,000.00 1,806.11 3,585.38 27,000.00 - - - 90,000.00 78,048.71 62 - Materials and SuppliesMaterials and Supplies - - 2,100.00 - - 900.00 - - - 3,000.00 3,000.00 63 - Contract ServicesContract Services - 33.40 39,200.00 - - 16,800.00 - - - 56,000.00 55,966.60 65 - Professional DevelopmentProfessional Development 137.47 1,727.95 24,500.00 36.00 705.00 10,500.00 - - - 35,000.00 32,567.05 Program: 1000 - Governing Board Total:11,123.78 22,852.81 228,200.00 4,744.41 9,744.17 97,800.00 - - - 326,000.00 293,403.02 - - - - - - Program: 2000 - General Administration - - - - - 51 - LaborLabor 44,853.78 60,351.38 434,700.00 19,222.96 25,864.76 186,300.00 - - - 621,000.00 534,783.86 52 - Temporary LaborTemporary Labor 1,131.72 2,302.34 21,000.00 485.04 986.74 9,000.00 - - - 30,000.00 26,710.92 53 - OvertimeOvertime 243.10 351.15 2,800.00 104.19 150.49 1,200.00 - - - 4,000.00 3,498.36 56 - BenefitsBenefits 12,427.15 47,810.30 186,900.00 4,270.35 19,434.57 80,100.00 - - - 267,000.00 199,755.13 62 - Materials and SuppliesMaterials and Supplies - 7.27 4,200.00 - 3.11 1,800.00 - - - 6,000.00 5,989.62 63 - Contract ServicesContract Services 13,366.50 13,366.50 151,200.00 5,728.50 5,728.50 64,800.00 - - - 216,000.00 196,905.00 64 - UtilitiesUtilities 110.30 110.30 2,800.00 47.27 47.27 1,200.00 - - - 4,000.00 3,842.43 65 - Professional DevelopmentProfessional Development 1,400.00 3,542.90 107,800.00 600.00 1,518.38 46,200.00 - - - 154,000.00 148,938.72 Program: 2000 - General Administration Total:73,532.55 127,842.14 911,400.00 30,458.31 53,733.82 390,600.00 - - - 1,302,000.00 1,120,424.04 - - - - - - Program: 2100 - Human Resources - - - - - - 51 - LaborLabor 26,802.13 35,758.27 247,100.00 11,486.59 15,324.93 105,900.00 - - - 353,000.00 301,916.80 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime 165.94 165.94 2,100.00 71.12 71.12 900.00 - - - 3,000.00 2,762.94 56 - BenefitsBenefits 6,984.72 74,731.36 149,800.00 2,961.41 31,995.67 64,200.00 - - - 214,000.00 107,272.97 62 - Materials and SuppliesMaterials and Supplies 122.50 122.50 3,500.00 52.50 52.50 1,500.00 - - - 5,000.00 4,825.00 63 - Contract ServicesContract Services 1,678.06 11,698.88 235,200.00 719.18 5,013.80 100,800.00 - - - 336,000.00 319,287.32 64 - UtilitiesUtilities 55.78 55.78 1,400.00 23.91 23.91 600.00 - - - 2,000.00 1,920.31 65 - Professional DevelopmentProfessional Development - 6,876.34 41,300.00 - 2,947.01 17,700.00 - - - 59,000.00 49,176.65 67 - OtherOther 7,746.32 1,290,790.55 1,850,100.00 3,319.83 319,448.58 792,900.00 (23,829.22) 794,286.43 - 2,643,000.00 238,474.44 Program: 2100 - Human Resources Total:43,555.45 1,420,199.62 2,530,500.00 18,634.54 374,877.52 1,084,500.00 (23,829.22) 794,286.43 - 3,615,000.00 1,025,636.43 - - - - - - Program: 2200 - Public Affairs - - - - - - 51 - LaborLabor 32,963.26 43,950.99 361,900.00 14,127.14 18,836.21 155,100.00 - - - 517,000.00 454,212.80 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime 786.80 846.88 11,900.00 337.19 362.94 5,100.00 - - - 17,000.00 15,790.18 56 - BenefitsBenefits 6,314.47 29,933.98 107,100.00 2,705.81 12,828.34 45,900.00 - - - 153,000.00 110,237.68 62 - Materials and SuppliesMaterials and Supplies 1,369.18 2,012.15 67,200.00 586.79 862.35 28,800.00 - - - 96,000.00 93,125.50 63 - Contract ServicesContract Services 30,800.66 38,507.73 443,100.00 3,140.67 6,221.61 189,900.00 - - - 633,000.00 588,270.66 64 - UtilitiesUtilities 143.46 238.66 24,500.00 61.48 102.28 10,500.00 - - - 35,000.00 34,659.06 65 - Professional DevelopmentProfessional Development - 76.99 43,400.00 - 33.00 18,600.00 - - - 62,000.00 61,890.01 Program: 2200 - Public Affairs Total:72,377.83 115,567.38 1,059,100.00 20,959.08 39,246.73 453,900.00 - - - 1,513,000.00 1,358,185.89 - - - - - - Program: 2300 - Conservation - - - - - - 51 - LaborLabor 13,401.60 17,868.80 123,000.00 - - - - - - 123,000.00 105,131.20 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime 251.28 251.28 7,000.00 - - - - - - 7,000.00 6,748.72 56 - BenefitsBenefits 3,525.70 4,279.68 44,000.00 - - - - - - 44,000.00 39,720.32 62 - Materials and SuppliesMaterials and Supplies 369.37 656.87 63,000.00 - - - - - - 63,000.00 62,343.13 63 - Contract ServicesContract Services 54,964.69 10,129.43 291,000.00 - - - - - - 291,000.00 280,870.57 64 - UtilitiesUtilities 7,713.33 7,713.33 26,000.00 - - - - - - 26,000.00 18,286.67 65 - Professional DevelopmentProfessional Development 2,500.00 2,500.00 12,000.00 - - - - - - 12,000.00 9,500.00 67 - OtherOther (254,219.38) (254,219.38) 85,000.00 - - - - - - 85,000.00 339,219.38 Program: 2300 - Conservation Total:(171,493.41) (210,819.99) 651,000.00 - - - - - - 651,000.00 861,819.99 Program: 3000 - Finance & Accounting - - - - - - 51 - LaborLabor 62,204.24 83,011.33 576,100.00 26,658.97 35,576.28 246,900.00 - - - 823,000.00 704,412.39 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime 579.36 1,384.52 9,100.00 248.28 593.35 3,900.00 - - - 13,000.00 11,022.13 56 - BenefitsBenefits 13,326.98 105,179.52 268,100.00 7,229.07 46,594.46 114,900.00 - - - 383,000.00 231,226.02 62 - Materials and SuppliesMaterials and Supplies 299.20 371.25 4,200.00 128.22 159.10 1,800.00 - - - 6,000.00 5,469.65 63 - Contract ServicesContract Services 2,379.92 38,944.84 97,650.00 1,019.97 16,682.08 41,850.00 - - - 139,500.00 83,873.08 64 - UtilitiesUtilities 119.57 144.45 2,800.00 51.25 61.92 1,200.00 - - - 4,000.00 3,793.63 65 - Professional DevelopmentProfessional Development - 2,011.76 20,300.00 - 862.19 8,700.00 - - - 29,000.00 26,126.05 67 - OtherOther - - - - - - - - - - - Program: 3000 - Finance & Accounting Total:78,909.27 231,047.67 978,250.00 35,335.76 100,529.38 419,250.00 - - - 1,397,500.00 1,065,922.95 - - - - - - Month Ended August 31, 2024 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Page 4 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended August 31, 2024 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Program: 3200 - Information Technology - - - - - - 51 - LaborLabor 34,702.07 46,269.42 340,900.00 14,872.33 19,829.78 146,100.00 - - - 487,000.00 420,900.80 52 - Temporary LaborTemporary Labor 3,360.00 4,480.00 11,900.00 1,440.00 1,920.00 5,100.00 - - - 17,000.00 10,600.00 53 - OvertimeOvertime - - - - - - - - - - - 56 - BenefitsBenefits 11,078.89 102,238.76 196,000.00 4,748.07 43,816.55 84,000.00 - - - 280,000.00 133,944.69 62 - Materials and SuppliesMaterials and Supplies 2,152.17 12,862.11 59,500.00 922.35 5,512.29 25,500.00 - - - 85,000.00 66,625.60 63 - Contract ServicesContract Services 116,053.23 140,297.12 703,500.00 49,737.11 60,127.35 301,500.00 - - - 1,005,000.00 804,575.53 64 - UtilitiesUtilities 997.09 997.09 8,400.00 427.33 427.33 3,600.00 - - - 12,000.00 10,575.58 65 - Professional DevelopmentProfessional Development - - 3,500.00 - - 1,500.00 - - - 5,000.00 5,000.00 Program: 3200 - Information Technology Total:168,343.45 307,144.50 1,323,700.00 72,147.19 131,633.30 567,300.00 - - - 1,891,000.00 1,452,222.20 - - - - - - Program: 3300 - Customer Service - - - - - - 51 - LaborLabor 52,243.10 69,689.32 480,200.00 22,389.77 29,866.75 205,800.00 - - - 686,000.00 586,443.93 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime 377.66 457.70 4,900.00 161.85 196.15 2,100.00 - - - 7,000.00 6,346.15 56 - BenefitsBenefits 14,440.80 76,927.75 227,500.00 6,188.40 32,968.23 97,500.00 - - - 325,000.00 215,104.02 62 - Materials and SuppliesMaterials and Supplies 217.38 254.53 4,900.00 93.16 109.08 2,100.00 - - - 7,000.00 6,636.39 63 - Contract ServicesContract Services 40,218.76 129,735.88 702,800.00 17,236.60 55,601.09 301,200.00 - - - 1,004,000.00 818,663.03 64 - UtilitiesUtilities 8,575.10 8,575.10 112,700.00 3,675.04 3,675.04 48,300.00 - - - 161,000.00 148,749.86 65 - Professional DevelopmentProfessional Development - - 11,200.00 - - 4,800.00 - - - 16,000.00 16,000.00 67 - OtherOther 855.29 1,797.48 4,200.00 - - 1,800.00 - - - 6,000.00 4,202.52 Program: 3300 - Customer Service Total:116,928.09 287,437.76 1,548,400.00 49,744.82 122,416.34 663,600.00 - - - 2,212,000.00 1,802,145.90 - - - - - - Program: 3400 - Meter Services - - - - - - 51 - LaborLabor 19,752.01 26,336.01 181,000.00 - - - - - - 181,000.00 154,663.99 53 - OvertimeOvertime - - 6,000.00 - - - - - - 6,000.00 6,000.00 56 - BenefitsBenefits 6,445.02 32,557.65 104,000.00 - - - - - - 104,000.00 71,442.35 62 - Materials and SuppliesMaterials and Supplies - - 4,000.00 - - - - - - 4,000.00 4,000.00 63 - Contract ServicesContract Services 135.30 211.89 7,000.00 - - - - - - 7,000.00 6,788.11 64 - UtilitiesUtilities 771.92 771.92 2,000.00 - - - - - - 2,000.00 1,228.08 65 - Professional DevelopmentProfessional Development - - - - - - - - - - - Program: 3400 - Meter Services Total:27,104.25 59,877.47 304,000.00 - - - - - - 304,000.00 244,122.53 - - - - - - Program: 4000 - Engineering - - - - - - 51 - LaborLabor 48,636.55 63,449.07 460,600.00 20,844.25 27,192.47 197,400.00 - - - 658,000.00 567,358.46 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime - - - - - - - - - - - 56 - BenefitsBenefits 9,396.10 12,274.34 107,800.00 4,058.88 5,292.37 46,200.00 - - - 154,000.00 136,433.29 62 - Materials and SuppliesMaterials and Supplies 70.79 70.79 4,200.00 30.34 30.34 1,800.00 - - - 6,000.00 5,898.87 63 - Contract ServicesContract Services 94.54 8,150.54 275,100.00 10.50 1,834.50 117,900.00 - - - 393,000.00 383,014.96 64 - UtilitiesUtilities 1,798.00 6,015.00 68,600.00 61.79 61.79 29,400.00 - - - 98,000.00 91,923.21 65 - Professional DevelopmentProfessional Development 3,500.00 4,308.24 8,400.00 1,500.00 1,846.38 3,600.00 - - - 12,000.00 5,845.38 Program: 4000 - Engineering Total:63,495.98 94,267.98 924,700.00 26,505.76 36,257.85 396,300.00 - - - 1,321,000.00 1,190,474.17 - - - - - - Program: 5000 - Water Production - - - - - - 51 - LaborLabor 95,385.71 127,443.93 884,000.00 - - - - - - 884,000.00 756,556.07 53 - OvertimeOvertime 11,023.54 11,791.31 92,000.00 - - - - - - 92,000.00 80,208.69 54 - StandbyStandby 4,220.84 5,655.12 47,000.00 - - - - - - 47,000.00 41,344.88 56 - BenefitsBenefits 23,298.66 146,191.91 396,000.00 - - - - - - 396,000.00 249,808.09 61 - Water SupplyWater Supply - - 833,000.00 - - - - - - 833,000.00 833,000.00 62 - Materials and SuppliesMaterials and Supplies 14,975.38 43,810.75 288,000.00 - - - - - - 288,000.00 244,189.25 63 - Contract ServicesContract Services 10,958.77 110,459.94 535,000.00 - - - - - - 535,000.00 424,540.06 64 - UtilitiesUtilities 847.97 847.97 3,099,000.00 - - - - - - 3,099,000.00 3,098,152.03 65 - Professional DevelopmentProfessional Development 105.00 661.19 11,000.00 - - - - - - 11,000.00 10,338.81 Program: 5000 - Water Production Total:160,815.87 446,862.12 6,185,000.00 - - - - - - 6,185,000.00 5,738,137.88 - - - - - - Program: 5100 - Water Treatment - - - - - - 51 - LaborLabor 33,019.20 44,025.60 304,000.00 - - - - - - 304,000.00 259,974.40 53 - OvertimeOvertime 3,007.08 6,099.80 39,000.00 - - - - - - 39,000.00 32,900.20 56 - BenefitsBenefits 8,611.10 94,215.58 179,000.00 - - - - - - 179,000.00 84,784.42 62 - Materials and SuppliesMaterials and Supplies 13,152.54 53,217.41 200,000.00 - - - - - - 200,000.00 146,782.59 63 - Contract ServicesContract Services 2,642.47 30,062.33 664,000.00 - - - - - - 664,000.00 633,937.67 64 - UtilitiesUtilities 715.96 715.96 243,000.00 - - - - - - 243,000.00 242,284.04 Program: 5100 - Water Treatment Total:61,148.35 228,336.68 1,629,000.00 - - - - - - 1,629,000.00 1,400,663.32 - - - - - - Program: 5200 - Water Quality - - - - - - 51 - LaborLabor 29,596.40 39,645.20 279,000.00 - - - - - - 279,000.00 239,354.80 53 - OvertimeOvertime - 60.33 12,000.00 - - - - - - 12,000.00 11,939.67 56 - BenefitsBenefits 4,706.26 46,761.68 102,000.00 - - - - - - 102,000.00 55,238.32 62 - Materials and SuppliesMaterials and Supplies 1,754.48 4,230.67 25,000.00 - - - - - - 25,000.00 20,769.33 63 - Contract ServicesContract Services 3,521.00 11,588.58 178,000.00 - - - - - - 178,000.00 166,411.42 64 - UtilitiesUtilities - 193.33 2,000.00 - - - - - - 2,000.00 1,806.67 65 - Professional DevelopmentProfessional Development - 374.00 7,000.00 - - - - - - 7,000.00 6,626.00 Program: 5200 - Water Quality Total:39,578.14 102,853.79 605,000.00 - - - - - - 605,000.00 502,146.21 - - - - - - Page 5 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended August 31, 2024 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Program: 6000 - Maintenance Administration - - - - - - 51 - LaborLabor 22,193.47 29,591.29 196,200.00 2,465.93 3,287.91 21,800.00 - - - 218,000.00 185,120.80 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime - - 1,800.00 - - 200.00 - - - 2,000.00 2,000.00 54 - StandbyStandby 4,393.63 6,032.67 18,000.00 385.95 488.17 2,000.00 - - - 20,000.00 13,479.16 56 - BenefitsBenefits 7,342.85 44,274.94 118,800.00 790.82 4,890.04 13,200.00 - - - 132,000.00 82,835.02 62 - Materials and SuppliesMaterials and Supplies - 145.38 2,700.00 - - 300.00 - - - 3,000.00 2,854.62 63 - Contract ServicesContract Services 89.95 810.73 1,800.00 10.00 90.09 200.00 - - - 2,000.00 1,099.18 64 - UtilitiesUtilities 2,885.62 2,886.51 36,900.00 320.63 320.73 4,100.00 - - - 41,000.00 37,792.76 65 - Professional DevelopmentProfessional Development - 478.45 20,700.00 - 29.20 2,300.00 - - - 23,000.00 22,492.35 67 - OtherOther - (4,228.85) - - 4,228.85 Program: 6000 - Maintenance Administration Total:36,905.52 79,991.12 396,900.00 3,973.33 9,106.14 44,100.00 - - - 441,000.00 351,902.74 - - - - - - Program: 6100 - Water Maintenance - - - - - - 51 - LaborLabor 140,307.23 188,204.55 1,280,000.00 - - - - - - 1,280,000.00 1,091,795.45 53 - OvertimeOvertime 55,068.70 69,199.12 219,000.00 - - - - - - 219,000.00 149,800.88 56 - BenefitsBenefits 46,231.04 199,226.05 630,000.00 - - - - - - 630,000.00 430,773.95 62 - Materials and SuppliesMaterials and Supplies 45,068.86 137,326.78 947,000.00 - - - - - - 947,000.00 809,673.22 63 - Contract ServicesContract Services 89,355.33 114,007.53 635,250.00 - - - - - - 635,250.00 521,242.47 64 - UtilitiesUtilities - 2,718.16 - - - - - - - - (2,718.16) Program: 6100 - Water Maintenance Total:376,031.16 710,682.19 3,711,250.00 - - - - - - 3,711,250.00 3,000,567.81 - - - - - - Program: 6200 - Wastewater Collection - - - - - - 51 - LaborLabor - - - 37,458.21 48,233.08 396,000.00 - - - 396,000.00 347,766.92 53 - OvertimeOvertime - - - 383.16 1,309.04 9,000.00 - - - 9,000.00 7,690.96 56 - BenefitsBenefits - - - 8,405.14 42,196.45 177,000.00 - - - 177,000.00 134,803.55 62 - Materials and SuppliesMaterials and Supplies - - - 12,369.53 22,467.95 37,250.00 - - - 37,250.00 14,782.05 Wastewater Treatment - - - - - 7,610,000.00 - - - 7,610,000.00 7,610,000.00 63 - Contract ServicesContract Services - - - - (61,099.24) (7,267,000.00) - - - (7,267,000.00) (7,205,900.76) Program: 6200 - Wastewater Collection Total:- - - 58,616.04 53,107.28 962,250.00 - - - 962,250.00 909,142.72 - - - - - - Program: 6300 - Water Reclamation - - - - - - 51 - LaborLabor - - - - - - 108,310.78 139,005.37 1,071,000.00 1,071,000.00 931,994.63 53 - OvertimeOvertime - - - - - - 34,522.65 45,930.93 125,000.00 125,000.00 79,069.07 54 - StandbyStandby - - - - - - 8,271.84 11,322.46 55,000.00 55,000.00 43,677.54 56 - BenefitsBenefits - - - - - - 29,982.05 153,913.68 481,000.00 481,000.00 327,086.32 62 - Materials and SuppliesMaterials and Supplies - - - - - - 16,570.99 30,544.50 787,000.00 787,000.00 756,455.50 63 - Contract ServicesContract Services - - - - - - 159,945.14 136,115.92 3,379,000.00 3,379,000.00 3,242,884.08 64 - UtilitiesUtilities - - - - - - 18,952.84 18,952.84 1,821,000.00 1,821,000.00 1,802,047.16 65 - Professional DevelopmentProfessional Development - - - - - - - - 20,000.00 20,000.00 20,000.00 Program: 6300 - Water Reclamation Total:- - - - - - 376,556.29 535,785.70 7,739,000.00 7,739,000.00 7,203,214.30 - - - - - - Program: 7000 - Facilities Maintenance - - - - - - 51 - LaborLabor 18,078.06 24,104.04 212,800.00 7,747.75 10,330.37 91,200.00 - - - 304,000.00 269,565.59 53 - OvertimeOvertime 687.02 824.42 9,800.00 294.43 353.32 4,200.00 - - - 14,000.00 12,822.26 56 - BenefitsBenefits 5,302.62 34,186.34 113,400.00 2,272.52 14,714.01 48,600.00 - - - 162,000.00 113,099.65 62 - Materials and SuppliesMaterials and Supplies 4,349.89 6,761.17 42,000.00 1,689.31 2,679.39 18,000.00 - - - 60,000.00 50,559.44 63 - Contract ServicesContract Services 78,373.23 112,880.97 872,200.00 25,715.66 38,371.74 373,800.00 - - - 1,246,000.00 1,094,747.29 64 - UtilitiesUtilities 45,119.81 50,106.78 275,100.00 1,594.80 2,503.15 117,900.00 - - - 393,000.00 340,390.07 65 - Professional DevelopmentProfessional Development - 572.75 2,100.00 - - 900.00 - - - 3,000.00 2,427.25 Program: 7000 - Facilities Maintenance Total:151,910.63 229,436.47 1,527,400.00 39,314.47 68,951.98 654,600.00 - - - 2,182,000.00 1,883,611.55 - - - Program: 7100 - Fleet Maintenance - - - - - - 51 - LaborLabor 8,421.84 11,229.12 73,500.00 3,609.36 4,812.48 31,500.00 - - - 105,000.00 88,958.40 53 - OvertimeOvertime 1,394.88 1,842.29 2,100.00 597.80 789.55 900.00 - - - 3,000.00 368.16 56 - BenefitsBenefits 2,326.23 2,783.06 22,400.00 996.94 1,129.86 9,600.00 - - - 32,000.00 28,087.08 62 - Materials and SuppliesMaterials and Supplies 8,163.91 15,584.71 126,000.00 3,498.80 6,673.90 54,000.00 - - - 180,000.00 157,741.39 63 - Contract ServicesContract Services 25,486.68 17,835.82 210,700.00 10,922.97 17,276.89 90,300.00 - - - 301,000.00 265,887.29 64 - UtilitiesUtilities 11,584.99 15,128.26 196,700.00 4,964.99 6,483.52 84,300.00 - - - 281,000.00 259,388.22 65 - Professional DevelopmentProfessional Development - - 2,800.00 - - 1,200.00 - - - 4,000.00 4,000.00 Program: 7100 - Fleet Maintenance Total:57,378.53 64,403.26 634,200.00 24,590.86 37,166.20 271,800.00 - - - 906,000.00 804,430.54 - - - Program: 8000 - Capital - - - - - 11 - Capital Assets not being DepreciatedCapital Assets not being Depreciated - - - - - - - - - - - 71 - Debt ServiceDebt Service - - 2,662,000.00 - - 482,000.00 - - 7,731,000.00 10,875,000.00 10,875,000.00 81 - Capital ImprovementCapital Improvement 18,340.33 18,340.33 558,000.00 - - - - - 150,000.00 708,000.00 689,659.67 82 - Capital OutlayCapital Outlay 137,326.13 146,165.64 1,128,000.00 26,299.09 26,299.09 242,000.00 - 16,437.56 83,000.00 1,453,000.00 1,264,097.71 83 - Accounting Income Add backAccounting Income Add back (18,340.33) (18,340.33) - - - - - - - - 18,340.33 88 - Transfer from ReservesTransfer to Reserves - - - - - - - - - - - 99 - 99Transfer from Reserves - - - - - - - - - - - Program: 8000 - Capital Total:137,326.13 146,165.64 4,348,000.00 26,299.09 26,299.09 724,000.00 - 16,437.56 7,964,000.00 13,036,000.00 12,847,097.71 Total Surplus (Deficit):1,890,064.81$ 1,922,399.65$ -$ 173,772.49$ 191,024.70$ -$ 796,923.71$ 987,669.75$ -$ -$ (3,101,094.10)$ Page 6 of 6 Agenda Item #2f November 13, 20241 Meeting Date: November 13, 2024 Agenda Item #2f Consent Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Adopt Resolution 2024.16 - Amending the District's Conflict of Interest Code RECOMMENDATION That the Board of Directors approve the District’s amended Conflict of Interest Code and adopt Resolution 2024.16 BACKGROUND / ANALYSIS The Political Reform Act requires every local government agency to review its Conflict of Interest Code biennially. A conflict of interest code informs public officials, government employees, and consultants what financial interests they must disclose on their Statement of Economic Interests (Form 700). Each agency must submit to the County Board of Supervisors a notice indicating whether or not an amendment is necessary, no later than October 1 of each even- numbered year. The District notified the County Board accordingly and has 60 days to submit the Conflict of Interest Code. After reviewing the District’s Conflict of Interest Code, staff determined that due to the Fair Political Practices Commission's gift schedule increase, and organizational changes that have occurred at the District over the past two years, an amendment is necessary. Staff recommends that the Board of Directors approve the amended Conflict of Interest Code and adopt Resolution 2024.16. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Agenda Item #2f November 13, 20242 Meeting Date: November 13, 2024 Agenda Item #2f Consent Item Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS Resolution 2024.16 1 East Valley Water District Resolution 2024.16 Page 1 of 2 RESOLUTION NO. 2024.16 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ADOPTING A CONFLICT OF INTEREST CODE WHEREAS, the East Valley Water District (“the District”) is a county water district organized and operating pursuant to California Water Code Section 30000 et seq., and a local government agency subject to the requirements of the Political Reform Act of 1974 (“the Act”), California Government Code Section 81000 et seq.; WHEREAS, Section 87300 of the Act requires all local government agencies to adopt and promulgate conflict of interest codes pursuant to the provisions of the Act; WHEREAS, the Fair Political Practices Commission (“the FPPC”) has adopted a regulation, 2 Cal. Code of Regs. Section 18730, which contains the terms of a standard conflict of interest code which can be incorporated by reference, and which may be amended by the FPPC after public notice and hearings to conform to amendments in the Act; and WHEREAS, the District desires to comply with its statutory requirements under the Act and to provide a method to ensure that its Conflict of Interest Code is current and consistent with the prevailing provisions of the Act and the regulations of the FPPC. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the East Valley Water District as follows: Section 1. The terms of 2 Cal. Code of Regs. Section 18730, and any amendments to it duly adopted by the FPPC, are hereby incorporated herein by this reference and, along with the attached Appendix in which members and employees are designated and disclosure categories are set forth, shall constitute the District’s Conflict of Interest Code. In the event of any inconsistency between the attached Appendix and the prevailing provisions of the Act and/or the applicable regulations of the FPPC, the Act and the FPPC regulations shall control. Section 2. Designated officials shall file statements of economic interest with the District which will then be made available to the public for inspection and reproduction. Upon receipt of the statements from the District’s Board of Directors and General Manager/CEO, the District Clerk shall make and retain a copy and forward the original of said statements to the County Clerk of the County of San Bernardino. Statements for all other designated officials will be retained by the District Clerk. 2 East Valley Water District Resolution 2024.16 Page 2 of 2 Section 3. This Resolution supersedes Resolution No. 2022.17 adopted by the District’s Board of Directors on September 14, 2022 and shall take effect immediately upon its adoption. ADOPTED this 13th day of November 2024. Ayes: Noes: Abstain: Absent: ______________________________ James Morales Jr. Board President ATTEST: _____________________________ Michael Moore Secretary, Board of Directors November 13, 2024 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2024.16 adopted by the Board of Directors of East Valley Water District at its regular meeting held November 13, 2024. _________________________ Michael Moore Board Secretary 3 APPENDIX CONFLICT OF INTEREST AND DISCLOSURE CODE SECTION 100. Adoption of Code. The East Valley Water District (“the District”) in the County of San Bernardino hereby adopts this Conflict of Interest and Disclosure Code (“Code”). The provisions of this Code are additional to Government Code Section 87100 and other laws pertaining to conflicts of interest. Except as otherwise indicated, the definitions of said Act and regulations adopted pursuant thereto are incorporated herein and this Code shall be interpreted in a manner consistent therewith. SECTION 200. Designated Positions. The positions listed on Exhibit “B” are designated positions. Persons holding those positions are deemed to participate in the making of decisions which may foreseeably have a material effect on a financial interest. SECTION 300. Economic Disclosure Statements. Designated positions are assigned to one or more of the disclosure categories set forth on Exhibit “A” each person holding a designated position shall file a statement disclosing his/her interest in investments, business positions, real property, and income, designated as reportable under the category to which his/her position is assigned on Exhibit “B”. SECTION 400. Place and Time of Filing. A.Persons holding designated positions which are added to the District’s Code shall file an initial statement within 30 days after the effective date of the Code. B.Persons appointed, promoted, or transferred to designated positions shall file an assuming office statement with the District within 30 days after assuming the position. C.Annual statements shall be filed with the District by April 1st by all persons holding designated positions. Such statements shall cover the period of the preceding calendar year or from the date of the last statement filed. D.Leaving office statements shall be filed with the District within 30 days of leaving a designated position. Such statements shall cover the period from the closing date of the last statement filed to the date of leaving the position. E.An individual who resigns a designated position within 12 months following initial appointment or within 30 days of the date of a notice mailed by the filing officer of the individual’s filing obligation, whichever is earlier, is not deemed to assume or leave 4 office, provided that during the period between appointment and resignation, the individual does not make, participate in making, or use the position to influence any decision of the District, or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position. Within 30 days of the date of a notice mailed by the filing officer, the individual shall do both of the following: (1) File a written resignation with the appointing power. (2) File a written statement with the filing officer signed under the penalty of perjury stating that the individual, during the period between appointment and resignation, did not make, participate in the making or use the position to influence any decision of the District or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position. SECTION 500. Contents of Economic Disclosure Statements. Statements shall be made on forms supplied by the District, and shall contain the following information. A.When an investment, or an interest in real property, is required to be reported, the statement shall contain: (1) A statement of the nature of the investment or interest; (2) The name of the business entity in which each investment is held, and a general description of the business activity in which the business is engaged; (3) The address or other precise location and the use of the real property; (4) A statement whether the fair market value of the investment or interest in real property equals or exceeds two thousand dollars ($2,000) but does not exceed ten thousand dollars ($10,000), whether it exceeds ten thousand dollars ($10,000) but does not exceed one hundred thousand dollars ($100,000), whether it exceeds one hundred thousand dollars ($100,000) but does not exceed one million dollars ($1,000,000) or whether it exceeds one million dollars ($1,000,000); and (5) If any otherwise reportable investment or interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the date of acquisition or disposal shall be reported. B.When income is required to be reported, the statement shall contain: (1) The name and address of each source of income aggregating five hundred ninety dollars ($590) or more in value, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any of each source; 5 (2) A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was at least five hundred dollars ($500) but did not exceed one thousand dollars ($1,000), whether it was in excess of one thousand dollars ($1,000) but not greater than ten thousand dollars ($10,000), whether it was greater than ten thousand dollars ($10,000) but not greater than one hundred thousand dollars ($100,000), or whether it was greater than one hundred thousand dollars ($100,000); (3) A description of the consideration, if any, for which the income was received; (4) In the case of a gift, the amount or value and the date on which the gift was received and the name, address, and business activity, if any, of the intermediary or agent and the actual donor; (5) In case of a loan, the annual interest rate and security, if any, given for the loan; and (6) The first report filed by a person holding a designated position shall disclose any reportable investments, interests in real property, business positions, and income received during the previous 12 months. C.When the filer’s pro rata share of income to a business entity or trust, including income to a sole proprietorship, is required to be reported, the statement shall contain: (1) The name, address, and a general description of the business activity of the business entity; and (2) The name of every person from whom the business entity received payments if the filer’s pro rata share of gross receipts from such persons was equal to or greater than ten thousand dollars ($10,000) during a calendar year. D.When business positions are required to be reported, the statement shall contain: (1) The name, address, and a general description of the business entity; (2) The filer’s job title or position; and (3) A statement whether the position was held throughout the entire reporting period and the dates the position was commenced or terminated, if not held during the entire reporting period. SECTION 600. Disqualification. Persons holding designated positions shall disqualify themselves from making or participating in the making or in any way attempting to use their official position to influence a governmental decision when it is reasonably foreseeable that the decision will have a material financial effect, distinguishable from its effect on the public generally, on: 6 A.The financial status of the person holding a designated position or that of his or her spouse or dependent children; B.Any business entity located in, doing business in, owning real property in, or planning to do business in the jurisdiction of the person holding a designated position, in which said person, or his or her spouse or dependent child, has a reportable investment of $2,000 or more; C.Any real property located in the jurisdiction of the person holding a designated position and said person, or his or her spouse or dependent child, has a reportable interest of $2,000 or more in that real estate; D.Any person, business entity, or nonprofit entity located in, doing business in, owning real property in, or planning to do business in, the jurisdiction of the person holding a designated position, from which said person or his or her spouse has received reportable income, other than loans by a commercial lending institution in the regular course of business, aggregating five hundred fifty dollars ($500) or more in value within twelve months prior to the time the decision is made; E.Any person, business entity, or nonprofit entity from which the person holding a designated position has received a reportable gift aggregating five hundred ninety dollars ($590) or more in value within twelve months prior to the time the decision is made; and F.Any business entity, other than a nonprofit organization, in which the person holding a designated position is a director, officer, partner, trustee, employee, or holds any position of management. SECTION 700. Adoption by Incorporation. Adoption by incorporation by reference of the terms of this code along with the designation of employees and the formulation of disclosure categories in the Exhibits referred to above constitute the adoption and promulgation of a Conflict of Interest and Disclosure Code. 7 CONFLICT OF INTEREST AND DISCLOSURE CODE Exhibit A CATEGORY 1 Persons in this category shall disclose all interest in real property within the jurisdiction. Real property shall be deemed to be within the jurisdiction if the property or any part of it is located within or not more than two miles outside the boundaries of the jurisdiction or within two miles of any land owned or used by the District. CATEGORY 2 Persons in this category shall disclose all investments and business positions. The Political Reform Act defines investment as follows: “Investment” means any financial interest in or security issued by a business entity, including but not limited to common stock, preferred stock, rights, warrants, options, debt instruments, and any partnership or other ownership interest owned directly, indirectly, or beneficially by the public official, or other filer, or his or her immediate family, if the business entity or any parent, subsidiary, or otherwise related business entity has an interest in real property in the jurisdiction, or does business or plans to do business in the jurisdiction, or has done business within the jurisdiction at any time during the two years prior to the time any statement or other action is required under this title. No asset shall be deemed an investment unless its fair market value equals or exceeds two thousand dollars ($2,000). The term “investment” does not include a time or demand deposit in a financial institution, shares in a credit union, any insurance policy, interest in a diversified mutual fund registered with the Securities and Exchange Commission under the Investment Company Act of 1940 or a common trust fund which is created pursuant to Section 1564 of the Financial Code, or any bond or other debt instrument issued by any government or government agency. Investments of an individual include a pro rata share of investments of any business entity, mutual fund, or trust in which the individual or immediate family owns, directly, indirectly, or beneficially, a 10-percent interest or greater. According to the Political Reform Act, a business position is a position of director, officer, partner, trustee, employee, or any position of management in any organization or enterprise operated for profit, including but not limited to a proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation or association. 8 CATEGORY 3 Persons in this category shall disclose all income and business positions. The Political Reform Act defines income as follows: “Income” means a payment received, including but not limited to any salary, wage, advance, dividend, interest, rent, proceeds from any sale, gift, including any gift of food or beverage, loan, forgiveness or payment of indebtedness received by the filer, reimbursement for expenses, per diem, or contribution to an insurance or pension program paid by any person other than an employer, and including any community property interest in the income of a spouse. Income also includes any outstanding loans. Income of an individual also includes a pro rata share of any business entity or trust in which the individual or spouse owns, directly, indirectly or beneficially, a 10-percent interest or greater. CATEGORY 4 Persons in this category shall disclose all business positions, investments in, or income (including gifts and loans) received from business entities that manufacture, provide or sell service and/or supplies of a type utilized by the District and associated with the job assignment of designated positions assigned to this disclosure category. CATEGORY 5 Consultants who are not employed as full-time staff members of the District shall nonetheless be included as a designated employee and subject to the disclosure requirements herein. However, those consultants whose positions are marked with an asterisk (*) in Exhibit “B” of this Code, or any other consultants which may be hired, may not be required to fully comply with the disclosure requirements herein where the range of duties which they are hired to perform is limited in scope. Such determination shall be made in writing by the General Manager/CEO of the District and shall include a description of the consultant's duties and, based upon that description, a statement of the extent of the consultant’s disclosure requirements, if any. This determination is a public record and shall be retained for public inspection in the same manner and location as this Code. 9 CONFLICT OF INTEREST AND DISCLOSURE CODE Exhibit B DESIGNATED POSITIONS DISCLOSURE CATEGORIES Director 1-3 General Manager/CEO 1-3 Finance Supervisor 4 Controller/Chief Financial Officer 1-3 Operations Manager 4 Director of Engineering & Operations 4 District Clerk 4 Director of Administrative Services 4 Information Technology Manager 4 Director of Strategic Services 4 Public Affairs/Conservation Manager 4 Water Reclamation Manager 4 Consultant * 5 Agenda Item #3a November 13, 20241 Meeting Date: November 13, 2024 Agenda Item #3a Informational Item 1 9 2 4 Regular Board Meeting TO: Governing Board Members FROM: Chief Financial Officer SUBJECT: Industry Benchmark Updates RECOMMENDATION This agenda item is for informational purposes only, no action required. BACKGROUND / ANALYSIS East Valley Water District is committed to delivering world-class service to its community, customers, and stakeholders. As part of its continuous improvement efforts, the District has established Industry Benchmarks that offer valuable insights into its performance relative to others in the industry. By leveraging these benchmarks, the District can enhance its operations, foster trust and transparency with stakeholders, and ensure that it continues to invest resources in building a safe and reliable public utility. The set of Industry Benchmarks have been developed to provide both the Governing Board and stakeholders a resource to assess various District functions including: Finance: •Operating Fund Target Level – Fund intended to cover unanticipated operating expenses and support routine cash flow, with a funding target of at least 90 days of the District's budgeted total operating expenses. The Operating Fund reserves reduced to 120 days due to reserves funds being rebalanced after the Board adopted reserve policy in February 2024. •Capital Replacement Reserves – Amount allocated to replace capital assets at the end of their useful lives, with a target minimum of twice the five-year average of the District's annual Capital Improvement Plan budget. The Capital Replacement Reserve is below the new target which was implemented in February 2024 due to a decrease of $4.28M in unrestricted net position. Operations: •Miles of Sewer Cleaned – The percentage of the District’s wastewater collection system cleaned annually. The U.S. Environmental Protection Agency (EPA) Operation and Maintenance Fact Sheet recommends the minimal annual average cleaning of 30% of the total sewer collection system. The District’s Operations Department has a goal of at least 60% or more, this year Operations staff cleaned 84%. Agenda Item #3a November 13, 20242 Meeting Date: November 13, 2024 Agenda Item #3a Informational Item 1 9 2 4 •Main Line Leaks – Quantifies the condition of a water distribution system, expressed as the annual number of leaks per 100 miles of distribution piping. This is higher than the industry standard. A large part of the leaks is due to aging pipe material. District is increasing the main replacement capital improvement program. •Staffing Efficiencies – Provides a measure of employee efficiency as expressed by the total number of active accounts serviced by employees (as FTEs) per year. District neighboring agencies average 212 accounts per employee where the District handled 298 accounts per EVWD employee for FY 2023-24. Administration: •Water Affordability – Provides a measure of the affordability of water services as a percentage of local median household income (MHI) as reported by the District. The U.S. EPA recommends that an agency’s average cost of water not exceed 2.5% of MHI. The District continues to maintain an average of 1.13% over the past five years. Customer Engagement: •Average Customer Service Wait Time – Average time a caller must wait on hold before they can speak to an agent or CSR during the reporting period. For FY 2023-24 the average wait time dropped to 20 seconds from 37 seconds the prior year. Industry Benchmarks are incorporated in the annual budget document along with periodic presentations to the Governing Board. AGENCY GOALS AND OBJECTIVES IV - Promote Planning, Maintenance and Preservation of District Resources D. Enable Fact-Based Decision Making REVIEW BY OTHERS This agenda item has been reviewed by Finance Department. Agenda Item #3a November 13, 20243 Meeting Date: November 13, 2024 Agenda Item #3a Informational Item 1 9 2 4 FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS Presentation-Industry Benchmark Updates Rudy Guerrero, Finance Supervisor November 13, 2024 INDUSTRY BENCHMARKS 2 •Presented annually •Measures performance of strategic initiatives •Comparison data based on: • District Goals •Industry Guidelines •Neighboring Water/Wastewater Agencies INDUSTRY BENCHMARKS 3 FINANCE 4 OPERATING FUND - 20 40 60 80 100 120 140 160 2023-24 2022-23 2021-22 2020-21 2019-20 Da y s o f O p e r a t i o n Fiscal Year Target Level Minimum Target Level Maximum 5 $- $2 $4 $6 $8 $10 $12 $14 $16 2023-24 2022-23 2021-22 2020-21 2019-20 Mi l l i o n s Fiscal Year Target Reserve Balance CAPITAL REPLACEMENT RESERVE FUND 6 OPERATIONS 7 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2023-24 2022-23 2021-22 2020-21 2019-20 Pe r c e n t C l e a n e d Fiscal Year EPA Target SEWER PIPELINE MAINTENANCE 8 WATER MAIN LEAKS 0 10 20 30 40 50 60 2023-24 2022-23 2021-22 2020-21 2019-20 Ma i n L e a k s P e r 1 0 0 M i l e s Fiscal Year AWWA Target 9 STAFFING EFFICIENCIES - 50 100 150 200 250 300 350 2023-24 2022-23 2021-22 2020-21 2019-20 # o f A c c o u n t s P e r O n e E m p l o y e e Fiscal Year Neighboring Agencies Average Accounts Per Employee 10 WATER RATES 11 WATER AFFORDABILITY 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 2023-24 2022-23 2021-22 2020-21 2019-20Av g W a t e r B i l l / M e d i a n H o u s e h o l d In c o m e Fiscal Year EPA Max Target 12 CUSTOMER ENGAGEMENT 13 CALL WAIT TIME - 10 20 30 40 50 60 70 80 90 100 2023-24 2022-23 2021-22 2020-21 2019-20 Se c o n d s Fiscal Year AWWA Median Avg. Wait Time QUESTIONS Agenda Item #4a November 13, 20241 Meeting Date: November 13, 2024 Agenda Item #4a Discussion Item 1 2 3 8 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Approval of the Annual Comprehensive Financial Report for Year Ended June 30, 2024 RECOMMENDATION That the Board of Directors approve the attached draft Annual Comprehensive Financial Report and audit reports for fiscal year 2023-24. BACKGROUND / ANALYSIS The Finance and Human Resources Committee recommended, at their November 4, 2024 meeting, that the Board of Directors (Board) approve the attached draft Annual Comprehensive Financial Report and audit reports for fiscal year 2023-24. Each year, the District contracts with an external audit firm to conduct an annual audit of the District’s books and records for the current fiscal year in compliance with California Water Code §30540(b)(2). The audit is both an industry best practice and a requirement of the State Controller Minimum Audit Requirements for California Special Districts. On July 9, 2024, the audit partner from Rogers, Anderson, Malody & Scott, LLP (RAMS) met with the District’s Finance and Human Resources Committee to review the auditing services provided during the audit for fiscal year ended June 30, 2024. In addition, RAMS described the procedures that were to be used to perform their audit in accordance with generally accepted auditing standards (GAAS). Once the audit is complete, the final requirement under Statement of Auditing Standards 114 (SAS 114) is for the auditors to communicate to those charged with governance: •Their views about qualitative aspects of the entity's significant accounting practices, including accounting policies, accounting estimates, and financial statement disclosures; •Significant difficulties, if any, encountered during the audit; •Uncorrected misstatements, other than those the auditor believes are trivial, if any; •Disagreements with management, if any; and Agenda Item #4a November 13, 20242 Meeting Date: November 13, 2024 Agenda Item #4a Discussion Item 1 2 3 8 •Other findings or issues, if any, arising from the audit that are, in the auditor's professional judgement, significant and relevant to those charged with governance regarding their oversight of the financial reporting process. Attached is the draft 2023-24 Annual Comprehensive Financial Report (Annual Report) that was reviewed by the Finance & Human Resources Committee on November 4, 2024. The Annual Report includes the District’s annual financial statements with accompanying note disclosures, management discussion and analysis, and statistical information compiled by staff. The 2023-24 Annual Report received an unmodified opinion from RAMS. An unmodified opinion indicates the financial data of the District is presented fairly. RAMS conducted an audit in accordance with auditing standards generally accepted in the United States of America and guidelines established by the California State Controller for Special Districts. On July 10, 2024 the District received the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence award for the 12th consecutive year; and will once again apply for this prestigious award in December. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department and the Finance and Human Resources Committee. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer Agenda Item #4a November 13, 20243 Meeting Date: November 13, 2024 Agenda Item #4a Discussion Item 1 2 3 8 ATTACHMENTS 1. EVWD Presentation 2. Draft Annual Report for FY 2023-24 3. Internal Controls Report 4. SAS 114 5. Independent Auditors Report November 13, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT FY 2023-24 Brian Tompkins, Chief Financial Officer 2 •Current •$4.1 Million decrease in current assets •Cash and investments increased from $7.7 million to $23.5 •$6.5 Million decrease in current liabilities •Current assets - $41.3 million; current liabilities - $19.9 million •Ratio of 2.08 to 1 •Non-current •$12.9 Million increase in non-current assets •Includes $10.6 million increase in restricted amounts •Decrease of $2.3 million in depreciable assets, net •$20.5 million increase in non-current liabilities •Includes $19.8 million borrowed for the Sterling Natural Resource Center (SNRC) •Decrease of $3.4 million on other debt •Increase of $1.0 million in net pension liability REPORT HIGHLIGHTS: FINANCIAL CONDITION 3 •Net position •$2.6 Million decrease to $145.2 million •Investment in utility plant $835 thousand decrease to $112.0 million •Restricted - $2.55 million increase to $13.3 million •Unrestricted - $4.28 million decrease to $19.8 million REPORT HIGHLIGHTS: FINANCIAL CONDITION 4 FINANCIAL CONDITION: DAYS CASH ON HAND 178 152 170 159 232 0 50 100 150 200 250 2020 2021 2022 2023 2024 D A Y S FISCAL YEAR 5 FINANCIAL CONDITION: CURRENT RATIO 2.13 1.93 1.73 1.72 2.08 - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 2020 2021 2022 2023 2024 R A T I O FISCAL YEAR 6 OUTSTANDING DEBT $175,478,305 $12,780,000 $14,060,000 $5,192,635 SRF Loan - SNRC 2020B Refunding Bonds 2020A Refunding Bonds DWR Loans 7 FINANCIAL CONDITION: UNRESTRICTED RESERVES 21.1 20.2 16.4 18.4 15.4 13.1 3.3 2.3 2.5 0.5 8.7 0.8 6.0 $0 $5 $10 $15 $20 $25 2019 2020 2021 2022 2023 2024 MI L L I O N FISCAL YEAR Water Wastewater Reclamation 8 •Operating activities •$70 Thousand increase in operating income •$699 Thousand increase in water operating revenue •$344 Thousand increase in wastewater operating revenue •$1.08 Million increase in wastewater treatment charges •$2.05 Million increase in operating expenses •Non-operating activities •$30 Thousand decrease in gain on disposal of assets •$80 Thousand decrease in interest expense •$130 Thousand unrealized investment gain •$2.56 Million in capacity charges REPORT HIGHLIGHTS: CHANGES IN NET POSITION 9 PRIOR YEAR COMPARISON DESCRIPTION FY 2023-24 FY 2022-23 Operating Revenue 45,930,215$ 43,810,012$ Operating Expenses (44,565,339) (42,515,136) Operating Income 1,364,876 1,294,876 Non-Operating Revenue 1,306,102 431,811 Interest Expense (789,683) (869,397) Unrealized Investment Losses - (87,280) Grants / Developer Fees 2,556,388 1,922,052 Special Item (7,000,000) - Increase in Net Position (2,562,317)$ 2,692,062$ 10 FY 2023-24 EXPENDITURES 25% 41% 7% 27%Employee Services Payments to Suppliers Debt Service Payments Capital Assets 11 DEBT SERVICE COVERAGE 2.48 2.08 2.96 2.67 3.19 34.48 4.72 14.48 5.37 7.70 - 5 10 15 20 25 30 35 40 2020 2021 2022 2023 2024 CO V E R A G E R A T I O FISCAL YEAR Water Wastewater Bond Requirement QUESTIONS? i ii iii Annual Comprehensive Financial Report Fiscal Year Ended June 30, 2024 East Valley Water District Prepared by: Finance Department 31111 Greenspot Road Highland, CA 92346 Annual Comprehensive Financial Report Fiscal Year Ended June 30, 2024 Table of Contents 1 Page No. Introductory Section Letter of Transmittal ......................................................................................................... 5-8 Organizational Structure ...................................................................................................... 9 Principal Officials ............................................................................................................... 10 GFOA Certificate .............................................................................................................. 11 Financial Section Independent Auditors’ Report ....................................................................................... 13-16 Management’s Discussion and Analysis .......................................................................... 17-31 Basic Financial Statements Statement of Net Position .......................................................................................... 33-34 Statement of Revenues, Expenses, and Changes in Net Position ................................... 35-36 Statement of Cash Flows ........................................................................................... 37-38 Statement of Fiduciary Net Position ................................................................................. 39 Notes to the Basic Financial Statements ...................................................................... 40-70 Required Supplementary Information Schedule of District’s Proportionate Share of the Net Pension Liability ................................ 73 Schedule of District’s Contributions .................................................................................. 74 Schedule of Changes in the Net OPEB Liability ............................................................ 75-76 Schedule of OPEB Healthcare Contributions ..................................................................... 77 Notes to the Required Supplementary Information ........................................................... 78 Supplementary Information History and Organization ................................................................................................. 82 Combining Schedule of Net Position ............................................................................ 83-84 Combining Schedule of Revenues, Expenses, and Changes in Net Position .................... 85-87 Combining Schedule of Cash Flows ............................................................................. 89-90 Annual Comprehensive Financial Report Fiscal Year Ended June 30, 2024 Table of Contents 2 Page No. Statistical Information Section Financial Trends Changes in Net Position by Component – Last Ten Fiscal Years .................................... 95-96 Operating Revenue by Source – Last Ten Fiscal Years ...................................................... 97 Water Operating Expenses – Last Ten Fiscal Years ........................................................... 98 Wastewater Operating Expenses – Last Ten Fiscal Years................................................... 99 Water Reclamation Operating Expenses – Last Ten Fiscal Years ...................................... 100 100Revenue Capacity Water Sales and Production – Last Ten Fiscal Years ........................................................ 101 Revenue Rates for Water – Last Ten Fiscal Years ..................................................... 103-104 Revenue Rates for Wastewater – Last Ten Fiscal Years ............................................. 105-106 Active Services by Type – Last Ten Fiscal Years .............................................................. 107 Principal Customers – Current Fiscal Year and Nine Years Ago ........................................ 108 Debt Capacity Ratio of Outstanding Debt – Last Ten Fiscal Years .......................................................... 109 Debt Service Coverage – Last Ten Fiscal Years ............................................................... 110 Demographic Information Demographic and Economic Statistics – Last Ten Calendar / Fiscal Years ......................... 111 Operating Information Full-Time Equivalent Employees by Department – Last Ten Fiscal Years ........................... 112 Operating and Capacity Indicators for Water and Wastewater – Last Ten Fiscal Years ...... 113 Other Information Capacity Charge Funds .............................................................................................. 115-118 3 4 5 October 28, 2024 To the Board of Directors and Customers of East Valley Water District, We are pleased to submit the Annual Comprehensive Financial Report (Annual Report) for East Valley Water District for the year ended June 30, 2024. This report was prepared by District staff in accordance with standards established by the Governmental Accounting Standards Board (GASB). The District’s management is responsible for the presented data, and the completeness and fairness of the presentation, including the note disclosures. We believe that the report presented is accurate in all material respects, and that the financial statements and other information are presented in a manner that enables readers to gain a full understanding of the District’s financial activities for the year. Readers should also refer to the Management’s Discussion and Analysis in the Financial Section of the Annual Report for a detailed discussion regarding the District’s financial condition and results of operations. The Annual Report follows the guidelines recommended by the Government Finance Officers Association (GFOA) of the United States and Canada. In November 2024, the District will, again, submit the Annual Report to this organization for review and possible recognition for achievement in reporting excellence. Background East Valley Water District (the District) was formed on January 18, 1954, and since then, has provided retail water service to customers in an expanding service area which now covers 30.1 square miles. The District directly serves treated water to approximately 108,000 people in the City of Highland, the eastern portion of the City of San Bernardino, the San Manuel Band of Mission Indians, and portions of the County of San Bernardino. In 1964, the District began providing wastewater collection services to the same service area. As of June 30, 2024, the District had 21,780 water connections and 19,859 wastewater connections. Water Supply and Reliability The District’s water supply for the year ended June 30, 2024 includes groundwater (76.7 percent), surface water (3.9 percent), and imported water (19.3 percent). Groundwater is pumped from the Bunker Hill Basin, and surface water from the Santa Ana River is diverted based on rights acquired from the North Fork Water Company. 6 Local Economy East Valley Water District is located within San Bernardino County in a metropolitan area referred to as the “Inland Empire”. Since 2015, the District’s population has grown by more than 6 percent and currently, comprised of mostly residential and commercial customers, with no major industrial users. Large consumers remain consistent year to year with the San Bernardino City Unified School District, Patton State Hospital, San Manuel Indian Bingo & Casino, City of Highland, and San Manuel Mission Indians forming the list of top five users. In 2024, the average household income within the District’s service area was $56,514, approximately 22% lower than the County of San Bernardino. Customers who reside in the City of Highland account for approximately 65% of the District’s customer base. These customers had an average household income of $68,105, approximately 21% higher than the overall District average. Financial Management The District manages its resources conservatively to deliver safe and reliable services to its customers at a fair and cost-effective price. It focuses on establishing fair rates, cost containment, long-term planning, maintaining and upgrading infrastructure, and pursuing alternative source of funding. This approach has allowed the District to undertake substantial capital improvement projects during tough economic times, while passing a series of modest rate increases. The keys to the District’s successful financial management are the District’s Capital Improvement and Financial Plan (CIFP), comprehensive reviews of water and wastewater rates, and the annual budget process. The CIFP provides a comprehensive view of infrastructure investments necessary over a seven-year period to ensure that water resources are adequate, water quality is maintained, and the water and wastewater service needs of current and future customers are met. The CIFP is reviewed annually by the District’s Board of Directors (Board) during the budget process, at which time the highest priority projects are adopted and receive authorization for expenditure along with the District’s operating budget. The District’s financial planning also includes the establishment and funding of reserves, and the pursuit of alternative funding sources, both of which help reduce reliance on rates and rate increases. In recent years the District has been very successful in pursuing project funding from the State Revolving Fund and Federal Emergency Management Agency (FEMA) and have applied for water and energy efficiency project funding from the Bureau of Reclamation and Edison. 76.7% 3.9% 19.3% Water Supply Sources Groundwater Surface Water Imported 7 Internal Control District management is responsible for establishing a system of internal accounting controls designed to provide reasonable assurances that assets of the District are safeguarded against losses from unauthorized use or disposition, and theft. The District’s internal controls also ensure the proper recording of financial transactions, and the preparation of financial statements in accordance with Generally Accepted Accounting Principles (GAAP). The District’s internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management. Budgetary Control The District’s Board of Directors annually adopts a balanced operating and capital budget prior to the new fiscal year. The budget authorizes expenditures and provides a basis for accountability over the District’s enterprise operations and capital projects. Each quarter, management provides the Board with a quarterly budget review to allow Board assessment of staff’s progress in meeting goals and objectives, and budget adjustments, if necessary, are requested at the mid-year budget review in February. Debt Administration The District utilizes proceeds from long-term debt, along with reserves and contributions from the operating budget, to finance major construction projects. Current debt consists of Revenue Bonds and loans from the State Revolving Fund. The District received a credit rating of AA- from Standard and Poor’s and Fitch when the Revenue Bonds were issued in September 2020. Fitch affirmed this rating as the result of a review conducted in June 2024. Investment Policy The Board of Directors annually adopts an investment policy that conforms to California State Law, District ordinances and resolutions, and the prudent person standard. The objectives of the policy are safety, liquidity, and yield. District funds are normally invested in the State Treasurer’s Local Agency Investment Fund (LAIF), and Federal government Treasury notes or agency obligations. Audit and Financial Reporting State law requires the District to obtain an annual audit of its financial statements by an independent Certified Public Accountant. This year, the District’s Financial statements were audited by Rogers, Anderson, Malody & Scott, LLP from San Bernardino, California. Their audit opinion is included in the Basic Financial Statements section of this report. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023. This was the 12th year that the District has achieved this prestigious award. To be awarded a Certificate of Achievement, a governmental entity must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. 8 Acknowledgements Preparation of this report was accomplished by the efforts of District staff. We appreciate the dedication and professionalism that our staff bring to the District. We would also like to thank the members of the Board of Directors for their continued support in the planning and implementation of the financial affairs of the District. Respectfully submitted, Michael Moore General Manager/CEO Brian W. Tompkins Chief Financial Officer EAST VALLEY WATER DISTRICT Organizational Structure Year Ended June 30, 2024 9 EAST VALLEY WATER DISTRICT Principal Officials Year Ended June 30, 2024 10 Vision Enhance and preserve the quality of life for our community through innovative leadership and world class public service. Core Values Leadership: Motivating a group of people to act towards achieving a common goal or destination. Partnership: Developing relationships between a wide range of groups and individuals through collaboration and shared responsibility. Stewardship: Embracing the responsibility of enhancing and protecting resources considered worth caring for and preserving. East Valley Water District Governing Board Members as of June 30, 2024 Name Title Elected / Appointed Current Term James Morales, Jr. Chairman of the Board Elected 2022 - 2026 Ronald L. Coats Vice-Chairman of the Board Elected 2022 - 2026 David E. Smith Governing Board Member Elected 2020 - 2024 Ronald L. Coats Governing Board Member Elected 2022 - 2026 Chris Carrillo Governing Board Member Elected 2020 - 2024 Contact Information East Valley Water District Michael Moore, General Manager/CEO 31111 Greenspot Road Highland, CA 92346 (909) 889-9501 www.eastvalley.org EAST VALLEY WATER DISTRICT GFOA Certificate Year Ended June 30, 2023 11 12 EAST VALLEY WATER DISTRICT Independent Auditor’s Report Year Ended June 30, 2024 13 EAST VALLEY WATER DISTRICT Independent Auditor’s Report Year Ended June 30, 2024 14 EAST VALLEY WATER DISTRICT Independent Auditor’s Report Year Ended June 30, 2024 15 EAST VALLEY WATER DISTRICT Independent Auditor’s Report Year Ended June 30, 2024 16 EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 17 The District East Valley Water District (District) is a California Special District established under section 30000 et seq. of the California Water Code. The District is engaged in pumping, treating, and distributing water to its customers, as well as maintaining a collection system and a newly commissioned reclamation plant known as the Sterling Natural Resource Center (SNRC) for treatment of residential and commercial wastewater. The District serves the City of Highland and portions of the City and County of San Bernardino in California. The Basic Financial Statements East Valley Water District is a special-purpose government agency, engaged in activities that are supported exclusively by user charges. As such, the District’s financial statements are presented in the format prescribed for proprietary funds by the Governmental Accounting Standards Board (GASB). The following financial statements for the year ended June 30, 2024 (2023 for comparative purposes only) consist of three interrelated statements designed to provide the reader with relevant, understandable data about the District’s financial condition and operating results. They are the Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Net Position, and the Statement of Cash Flows. The Statement of Net Position presents financial information on the District’s assets, liabilities, and deferred inflow and outflows of resources, with the difference reported as net position as of the last day of the District’s fiscal year (FY). Over time, increases or decreases in net position can serve as a useful indicator of whether the financial position of the East Valley Water District is improving or deteriorating. The Statement of Revenues, Expenses, and Changes in Net Position presents information showing how the District’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. The Statement of Cash Flows (direct method) conveys to financial statement users how the District managed cash resources during the year. This statement converts the change in net position presented on the Statement of Revenues, Expenses, and Changes in Net Position into actual cash provided by or used for operations. The Statement of Cash Flows also details how the District obtains cash through financing and investing activities, and conversely, how cash is spent for these purposes. Fiduciary fund statements provide information about the fiduciary relationships, also known as custodial funds of the District, in which the District acts solely as a trustee or custodian for the benefit of others, to whom the resources in question belong. The fund is used to account for receipts and disbursements associated with Community Facilities District (CFD), which are administered by, but are not the liability of the District. Summary Financial Information and Analysis Financial Condition During the year ended June 30, 2024, the District’s total assets and deferred outflows increased by $10.5 million, to $395.6 million. The increase was the net result of a decrease to Current assets and an increase to Capital assets. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 18 Current assets decreased $4.1 million (9%) to $41.3 million. While the decrease is a net between increases and decreases of the various Current asset line items, one of the most notable changes is the $10 million shift to longer term Investments. With the completion of the very large reclamation plant project, the District had the opportunity to lock in higher yields over a longer term by expanding its portfolio of U.S. Treasury and Agency securities. Also significant was the $13.0 million decrease in Due From Other Governments, which recognizes outstanding reimbursement claims from the State Revolving Fund for loan eligible construction activity on the Sterling Natural Resource Center (SNRC). The receipt of some of the amounts included in the beginning balance, as well as reclassifying $7.8 million to restricted, contributed to the decrease in this balance. The reclassification to restricted earmarks this amount of cash to be received from the State for the debt service reserve required by the State Funding Agreement. Utility Accounts Receivable balances grew 2.7% to $6.1 million during FY 2023-24. Rate increases, which became effective in January 2024 could reasonably have resulted in a higher receivable balance at year end, however the District’s continued participation in the Low-Income Household Water Assistance Program (LIHWAP) which supplies federal funds to pay customer account balances if they are eligible, assisted customers with severely overdue balances through December 2023 when the program ended. Almost $40 thousand in LIHWAP funding was received and applied to customer balances between July and December 2023. Inventory balances increased 9.0% to $1.06 million during FY 2023-24, due simply to rising costs of materials. Restricted Asset balances increased from $12.4 to $23.0 million. The increase is the result of completion of the SNRC reclamation facility, and a requirement in the State Funding Agreement that the District set aside a restricted debt service reserve equal to one year’s debt service, approximately $7.8 million. 2024 2023 Current Assets 41.3$ 45.4$ Restricted Assets 23.0 12.4 Other Assets 0.3 0.3 Capital Assets - Net 322.0 319.7 Total Assets 386.6 377.8 Total Deferred Outflow of Resources 9.1 7.3 Current Liabilities 19.9 26.4 Non-Current Liabilities 228.4 207.9 Total Liabilities 248.3 234.3 Total Deferred Inflows of Resources 2.2 3.0 Net Position Net Investment in Capital Assets 112.1 112.9 Restricted 13.3 10.8 Unrestricted 19.8 24.1 Total Net Position 145.2$ 147.8$ Capital Assets increased by $2.3 million during FY 2023-24. For purposes of the table above, Capital Assets includes construction in progress (CIP), utility plant in service and related accumulated depreciation. Changes in Capital Assets included additions of $9.8 million, an annual depreciation charge of $7.6 million and an annual and expensing of capital projects totaling $0.2 million. Capital expenditures during the year were primarily Construction in Progress on the SNRC, and assets retired were completely depreciated with no remaining book value and so their retirement had no effect on the balance of fixed assets. A more detailed description of capital spending is in the Capital Assets EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 19 section of this analysis, and a more detailed schedule showing the changes to fixed assets during the fiscal year is included in Note 4 of the financial statements. Total Deferred Outflow of Resources consists of pension contributions made after the most recent pension plan actuarial valuation, as well as differences between projected and actual earnings on pension plan investments and changes in assumptions. Investment earnings of 5.8% on pension plan assets during the plan year ended June 2023, compared to actuarial assumptions that the assets would earn 6.8%, led to an increase in Deferred Outflows- Pensions for 2023-24 of $1.0 million. This amount was accompanied by an increase in Deferred Outflows related to Other Post Employment Benefits (OPEB) of $0.8 million. While Current assets decreased during the year, current liabilities also decreased by $6.5 million in FY 2023-24. This decrease is the result of partially paying the $12.0 million retention withheld during construction of the SNRC, and reclassifying the balance to accounts payable. The end of project construction also signaled the commencement of debt service on the SNRC construction loan, and accordingly, the amount payable within 12 months of $4.4 million on that loan has contributed to the increase of the Current Portion of Long-Term Debt by $3.6 million compared to the prior year. Other factors contributing to the change in current liabilities were a $2.1 million increase in accounts payable and accrued payroll, and a $0.2 million drop in the current portion of compensated absences. These decreases in the Current asset and Current liability balances explained above resulted in a slight improvement to the District’s current ratio from 1.7:1 to 2.1:1. Non-Current Liabilities increased $20.5 to $228.4 million. The large increase was the result of significant activity, most of it related to the SNRC. Following are the factors contributing to the increase in Non-Current Liabilities:  $19.7 million increase in SNRC State Revolving Fund loan due to final construction project invoices and capitalization of interest accumulated on State loan drawdowns during the SNRC construction.  $(0.9) million in advanced principal payments to extinguish a loan.  $(6.2) million for the current portion of Long-Term Debt amounts reclassified as Current Liabilities.  $0.4 million increase in Compensated Absences and Other Post-Employment Benefit obligations calculated in accordance with GASB statement 75 (retiree medical).  $1.1 million increase in unfunded pension benefit obligations due to earnings on pension plan assets not meeting earnings targets (5.8% versus 6.8%) for the year ended June 2023, the date of the valuation on which current obligations are calculated.  $6.3 million increase due to the accrual of a settlement obligation to the City of San Bernardino, payable $700 thousand per year for 10 years beginning in 2023-24. Pensions and OPEB (Other Post Employment Benefits) are further discussed in Notes 8 and 11 of the accompanying financial statements. Long-Term Debt and Compensated Absences are further explained in financial statement Notes 5 and 6, respectively. The settlement obligation payable to the City of San Bernardino was part of a critical agreement releasing the District from a 1957 wastewater treatment Joint Powers Authority and facilitating the Local Agency Formation Commission’s (LAFCO) granting of wastewater treatment authority to the District, and ultimately allowing the District’s water reclamation plant project (SNRC) to proceed. The total settlement cost has been expensed as a EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 20 special item, and the obligation is being paid by the Water and Wastewater funds, which were the funds in existence when the obligation was incurred. The District’s total Net Position was $145.2 million at the end of FY 2023-24, a $2.7 million decrease compared to the end of the previous fiscal year. Of the $145.2 million Net Position balance, $112.0 million is categorized as Net Investment in Capital Assets, $13.3 million is Restricted for Capital Expansion Projects, and $19.8 million is Unrestricted. The calculation of Net Investment in Capital Assets is included in Note 7 of the accompanying financial statements. Looking at longer term results, the District’s total Net Position has increased $9.3 million and $32.4 million over five- and ten-year periods, respectively. Results of Operations and Changes in Net Position Water Operations The District’s water enterprise fund continued to feel the strain from suppressed water sales and rising costs. Water sales for FY 2023-24 increased 2.6% to $17.5 million, the result of a rate adjustment effective January 2024, and a slight increase in water demand by customers from 15,341 acre-feet in 2022-23, to 15,420 acre-feet. This level of water usage was well below projections, and historical averages, and aligned with usage in the previous year, during which California experienced historic levels of snowfall and rain during the winter of 2023. Locally, the District’s weather station in Highland, California recorded 18.1 inches of rain from July 2023 to June 2024, compared to 24.03 inches recorded in 2022-23, and 10.4 inches in 2021-22, when California was struggling through a drought. The following tallies total rainfall and average daily high temperatures for each month during FY 2023-24 that were recorded by the District’s weather station: 07/23 08/23 09/23 10/23 11/23 12/23 01/24 02/24 03/24 04/24 05/24 06/24 0.87” 1.94” 1.00” 0.95” 0.62” 0.00” 1.24” 8.55” 2.30” 0.63” 0.00” 0.00” 99.1° 95.1° 84.9° 84.6° 75.0° 70.0° 65.1° 62.4° 65.1° 73.5° 76.8° 89.7° Following is the same information for FY 2021-22. In that year, rainfall was about 57% of the rainfall in 2023-24. The average daily high temperature was higher in each of the winter and spring months (January through June) and as a result, water usage by customers was 17% higher: 07/21 08/21 09/21 10/21 11/21 12/21 01/22 02/22 03/22 04/22 05/22 06/22 0.50” 0.00” 0.00” 0.73” 0.22” 5.09” 0.89” 0.33” 1.13” 0.78” 0.22” 0.49” 97.1° 94.4° 91.1° 78.8° 80.3° 63.2° 69.2° 71.1° 74.6° 77.2° 81.0° 93.4° Potable water sales of $17.5 million fell short of 2023-24 revised projections of $17.7 million. Projections are based on historical usage, and follow a predictable pattern, but again, higher than average rainfall throughout the winter months, and a hurricane in August, suppressed demand for water, especially water used for irrigation. Sales through irrigation meters increased by 3% after falling 21% in the previous year, while residential usage decreased by just EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 21 0.3%. Usage by commercial/business customers had the most significant decline in usage at 8%, after having fallen 5% in the previous year. Total water produced by the District during the year was 16,273 acre-feet, with the difference between water produced and water sold of 853 acre-feet (5.2%) being the result of District flushing programs, water use at District facilities, and system leaks. The District, like all California water agencies, participates in an annual water audit to identify and work to mitigate unidentified water losses from the District’s water distribution system. The other major water operating revenue collected by the District is Water System, or Meter Charge revenue. Meter Charge revenue grew by 3.2% to $10.1 million for FY 2023-24. The increase was due to a 3% rate increase that became effective in February of 2024, and to a lesser extent, new development. The District added approximately 20 new customers during the FY but received development impact fees for 153 Equivalent Dwelling Units (EDUs) for future development. $0 $5 $10 $15 $20 $25 $30 $35 2020 2021 2022 2023 2024 Mi l l i o n s Water Operating Revenue versus Expenses Revenue Expenses Water Operating expenses decreased 0.4% to $26.5 million for FY 2023-24. The decrease occurred despite a general increase in costs overall for two reasons. First, was the low customer demand for water, as described above, and how that effected costs directly tied to water production – particularly energy. Lower need for energy to produce water, combined with a spike in energy costs during the previous year, 2022-23, when Edison issued some substantial ‘catch-up’ bills resulting from billing errors, caused power costs to drop $713 thousand in FY 2023- 24. Aside from the anomalies in the last two years, the rising cost of energy has had a significant impact on water operations for several years. In addition to rate increases, Edison redefined daily ‘peak’ hours. Peak hours and the high rates associated with them, were shifted away from the period 1:00 p.m. to 5:00 p.m., hours during which demands on the electrical grid have fallen because many customers are generating their own solar energy during those hours, to 4:00 p.m. to 9:00 p.m. when customers returning home from work/school are using electrical appliances but cannot generate solar energy. The District was able to adjust to the shift in peak hours during weekdays, but another revision that added peak hour pricing to weekend days disrupted District operational strategies that avoided peak hour rates by filling all reservoirs during the weekend. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 22 Another reason for the drop in water operating expenses is related to the migration of several water production and field service workers to the new reclamation department. As these employees took jobs at the new SNRC water recycling facility, the time needed to backfill their positions led to lower labor costs in water operation. Other year-over-year variations in water operating costs are outlined below:  Purchased water costs increased as the District had to utilize more State Water Project, rather than Santa Ana River water, due to hurricane Hilary which passed through the region in August of 2023. That unusually powerful storm caused major flooding in local mountains, taking out bridges and roads, and a flume used by Edison to redirect river flows, coming out of the mountains, for hydroelectric power generation. Water in the flume bypassed an earthen dam, keeping it pristine, so that after its use for power generation, the District could divert it to its surface water treatment plant and then distribute it to customers. With the flume gone, and water behind the dam being very poor quality, the District had the choice of purchasing State Water Project or pumping groundwater. Wastewater Collection Operations Wastewater Collection operating revenues consists of System Charges and Other Operating Revenue. System Charge rates are set by the District to cover the cost of maintaining the District’s wastewater collection system and to cover a portion of administrative and general expenses. A rate adjustment implemented in January 2024 was primarily responsible for a 7.3% increase in System charge revenue to $6.1 million for 2023-24. Other Operating Revenue includes inspections, plan checking, and other development related fees; and periodic reimbursements from other public agencies or utilities for shared costs or participation in conservation programs. In FY 2023-24, Other Operating Revenue dropped significantly as fees related to infill development slowed due to rising interest rates. Wastewater Collection pipeline maintenance costs include video logging the condition of pipelines from the inside; utilizing a camera mounted on a robotic crawler; contracting for the repair of cracks in the pipelines noted on videos; and jetting pipelines with a Vactor to dislodge buildups of fats, oil and grease (FOG) before they can cause backups and spills. The collection system is entirely gravity flow, requiring no pumps and associated facilities. In FY 2023-24, wastewater collection maintenance costs increased by 5.3% compared to the prior year. This change is the effect of Cost of Living Adjustments (COLA) on salaries and benefits costs’, and an increase in contract services as the District contracted for the installation of sensors on manhole covers to help alert the District of rising wastewater levels and potential blockages. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 23 $0 $1 $2 $3 $4 $5 $6 $7 2020 2021 2022 2023 2024 Mi l l i o n s Wastewater Collections Operating Revenue versus Expenses Revenue Expenses Water Reclamation Operations The District entered FY 2023-24 expecting to commission its new Sterling Natural Resource Center (SNRC) water reclamation plant in early November 2023, and to ramp up to full operations by the end of the fiscal year. Revenues and expenses were budgeted accordingly. However, delays in completing construction on the recycled water pipeline, which delivers recycled water from the reclamation plant to groundwater recharge basins, delayed the commencement of plant operations for two months. This would lead to revenues falling short of projection, while the cost of having wastewater treated by an outside agency to exceed expectations. In January 2024, the District finally began a phased approach of redirecting wastewater flows to the SNRC, where the wastewater was treated and recycled water delivered to the recharge basins. By the end of March 2024, all District wastewater flows were being directed to the SNRC, and connections leading to the City of San Bernardino treatment plant were sealed off. The final step to full operations was the commencement of two digesters, that produced energy for on-site use from sludge and other waste materials. The digesters were producing gas and some energy by the end of June, but revenue from waste hauler tipping fees (explained below) and energy production to reduce reliance on power from Edison, did not materialize during FY 2023-24 as expected. Water Reclamation operating revenue consists primarily of wastewater treatment charges. The District has been collecting these charges since approximately 1957, but since the District now treats its own wastewater flows (since March 2024), the District no longer remits monthly payments to the City of San Bernardino Water Department (City) for treatment services. Treatment charges for FY 2023-24, which were based on rates established by the District in May 2021, were $10.7 million. This is a 6.3% increase over prior year revenue of $10.1 million, which is due primarily to a rate adjustment that went into effect on January 1, 2024. The second revenue stream in Reclamation is for the production and delivery of recycled water, which the District has reported as a type of Water Sales in the accompanying financial statements. The recharge basins where recycled water is delivered are owned by the San Bernardino Valley Municipal Water District (San Bernardino Valley), with which the District has an agreement under its Local Resource Investment Program (LRIP) to recharge all recycled water produced by the SNRC. In exchange the District receives a contribution from San Bernardino Valley of $173 per acre foot of water recharged. During FY 2023-24 the District recharged 2,540.18 acre-feet of recycled EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 24 water to earn a LRIP contribution of $439,451. This amount exceeded projections of $332,000 due to the quick cutover of flows to the SNRC, even though completion of the recycled water pipeline was delayed by two months. As mentioned above, a third Reclamation revenue stream will be tipping fees charged to food waste haulers who choose to discharge their waste at the SNRC. The waste will be added to sludge generated by plant treatment operations, converted to gas by anaerobic digesters, and then converted to energy for use in powering plant operations. Though the District anticipated generating approximately $0.5 million in tipping fees during FY 2023- 24, the digesters had not been fully commissioned by the end of the fiscal year and therefore no tipping fee revenue was realized. The graph below depicts the District’s revenue and expenses related to wastewater treatment and reclamation. Through FY 2024 the District used the City rates to bill its customers and then remit payment to the City at the end of each month. Under this relationship, treatment revenue collected was exactly equal to treatment fees paid to the City. In May 2022, the District established and implemented its own rates and began hiring operators and covering startup costs for commencement of operations at the SNRC. The District’s Wastewater Treatment rates were adopted with three phases. Phases 1 and 2 were implemented in May 2022 and January 2023, respectively, with phase 3 scheduled for implementation in January 2024. The District’s rate structure consists of fixed monthly charges for all residential customers, and for non-residential customers, a combination of fixed and variable charges, which are assessed based on water usage. For the year ended June 2024, Water Reclamation revenue was $11.2 million, compared to $10.1 million in the previous fiscal year. The increase was substantially due to the rate adjustment that became effective in prior year. $6 $7 $8 $9 $10 $11 $12 $13 2020 2021 2022 2023 2024 Mi l l i o n s Water Reclamation Operating Revenue versus Expenses Revenue Expenses Operating expenses recorded by the Reclamation fund (before depreciation) in FY 2023-24, the year in which it commenced operations, were $11.0 million compared to projections of $11.3 million. The two-month delay in commencing treatment operations resulted in the District having to pay the City an additional two months for treatment services, but at the same time energy costs, and material and supplies costs were lower due to delays. Salaries and benefits of $1.44 million, which were incurred for the entire year, exceeded budget by 14.5% due to unexpected overtime costs as staff worked to address issues such as clogged screens, odors, and leaking seals that arose during start-up. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 25 Upon completion of construction, the cost of the new plant was allocated to approximately 200 components (facilities and equipment) and capitalized, with useful lives ranging from 5 to 50 years. Most of the components had ‘placed in service’ dates that recorded depreciation for between one and four months for the year. In total, $1.05 million in depreciation was recorded for the SNRC for FY 2023-24. Reclamation operating expenses of $12.1 million, including depreciation, exceeded operating revenue of $11.2 million by $0.9 million. This result was without any revenue or energy savings contributions from the digesters, which were significant reasons for their addition to the project. The digesters should be fully operational early in FY 2024-25 and be able to contribute in both ways to the operating results of the Reclamation fund. Shared Customer Account & Administrative Costs Costs related to Customer Accounts are generated by the Customer Service and Meter Services departments. The burden for funding these costs is allocated between the Water and Wastewater Collection funds at roughly a 70%- 30% split; the Water Reclamation fund does not currently share in these costs and will not until the fund is more established and revenues are able to cover costs sufficiently. Customer account costs increased 6.0% in FY 2023-24 to $2,392,357. While there were nominal cost increases in many cost categories, including a 5% COLA negotiated with staff for the fiscal year, two costs had extraordinary increases as explained below:  The cost for printing and delivery of final notices to customers increased 12% to $304 thousand as the number of defaults and notices needed increased. State assistance programs to help with water bills, that were initiated during or shortly after the COVID pandemic, all ended by December 2023.  Banking services, which include credit card processing fees, increased 42% due to extremely excessive increases that were being implemented by one of the District’s primary processors. The District demanded that the fees be revised and has negotiated fees that are in line with industry standards. General and Administrative (G&A) costs decreased 3.4% to $12.8 million from $13.2 million in the previous fiscal year. These are G&A cost totals after posting significant negative expense adjustments related to Salaries and Benefits. Prior to the adjustments, cost totals for G&A were $14.6 million and $14.0 million in the current and prior years, respectively. The negative expense adjustments were the result of adjustments to Net Pension, and Other Post Employment Benefit (OPEB) obligations in accordance with GASB statements 68 and 75. The amounts of expense adjustments were ($1.8) million and ($0.8) million for fiscal years 2023-24, and 2022-23, respectively. Aside from these adjustments, the following factors affected some of the largest G&A cost line items: 1. Salaries & Benefits increased $0.2 million to $5.5 million, compared to $6.8 million incurred in the previous year. This increase is due to a 5% COLA negotiated with staff for FY 2023-24, that would have had a larger effect on G&A expenses, but a member of the Engineering team, whose salary was reported in G&A, was hired to fill the new Reclamation Manager position in the Reclamation department, where his salary is now reported in Treatment operations. The vacant position in Engineering has not been backfilled. 2. Contract Services in G&A decreased 13.8% to $3.3 million. There are two reasons for this, first as explained for salaries above, some contracts that were being reported as G&A have now been more appropriately reported under Reclamation Treatment operations. In addition, the District is actively bidding long-term EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 26 contracts and considering technology solutions where labor intensive contracts had been in place, to enhance efficiencies and cost savings. 3. Insurance costs continued to climb, by 53.0% to $1.8 million in FY 2023-24. The primary reason for the increase is removal of the water reclamation plant from the contractor’s insurance to the District’s insurance, upon completion of the SNRC. Non-Operating Activities The District’s non-operating revenue of $1.3 million includes investment income of $1.27 million (including unrealized gains/losses), and miscellaneous income of $39 thousand. Investment income is earned on the District’s portfolio of U.S. Treasury and Agency Bonds and deposits with the Local Agency Investment Fund (LAIF). During FY 2023-24, investment income rose 230% over the prior year’s earnings of $265 thousand. The increase was due, in part, to the District actively pursuing higher yields by moving an additional $10 million in cash reserves out of the liquid LAIF account and into direct purchase of U.S. and U.S. backed securities, which were offering rates of between 4.5% and 5.5%. An increasing interest rate paid by LAIF, from 3.15% to 4.55%, also helped boost the District’s investment earnings. Non-Operating expense includes interest paid on Long-Term Debt, which fell from $869 thousand in the prior year, to $790 thousand in FY 2023-24. The payoff of two loans during the year, one on its original payoff date, and one two years premature, contributed to the decrease in interest expense. Capital Contributions and Special Item Contributions received during FY 2023-24 included $2.6 million in developer capacity fees, across all funds, for approximately 156 EDUs (equivalent dwelling units). These fees represent ‘moderate’ continued development activity from the prior year when fees were received for 113 EDUs. Development is a mixture of both commercial and residential construction, mostly for Tract developments. Planning for Accessory Dwelling Units (ADUs) has slowed significantly due to high interest rates. The District recorded a one-time charge of $7 million as a settlement obligation payable to the City of San Bernardino. This was part of a critical agreement that released the District from a 1957 wastewater treatment Joint Powers Authority and facilitated the Local Agency Formation Commission’s (LAFCO) granting of wastewater treatment authority to the District, ultimately allowing the District’s water reclamation plant project (SNRC) to proceed. Further details are provided in Note 14 to the financial statements. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 27 East Valley Water District Changes in Net Position (in millions) 2024 2023 2022 Water Sales 17.9$ 17.0$ 18.5$ System Charges 16.2 15.5 14.0 Treatment Charges 10.7 10.1 9.8 Other Operating Rev 1.1 1.2 0.8 Supply & Pumping (5.0) (4.9) (4.3) Distribution / Collection (4.8) (5.1) (4.2) Treatment (12.0) (10.8) (10.1) Customer Accounts (2.4) (2.2) (1.7) General & Administrative (12.8) (13.2) (13.9) Depreciation (7.6) (6.3) (6.4) Non-Operating Revenues 1.3 0.4 1.3 Interest Expense (0.8) (0.9) (1.6) Income Before Contributions & Special Item 1.8 0.8 2.2 Developer Contributions 2.6 1.8 2.7 Grant Funds Contributed - 0.1 0.1 Special Item - Settlement Obligation (7.0) - - Change in Net Position (2.6) 2.7 5.0 Beginning Net Position, as Previously Reported 147.8 145.1 140.1 Ending Net Position 145.2$ 147.8$ 145.1 Components of Net Position The District is required to present its Net Position in three categories: Net Investment in Capital Assets, Restricted, and Unrestricted. Net Investment in Capital Assets The components comprising Net Investment in Capital Assets are presented in Note 7 of the accompanying financial statements. The balance at June 30, 2024 is $112.0 million, a decrease of $0.9 million compared to June 30, 2023. The decrease is the net result of the acquisition or construction of Capital assets for $9.7 million, offset by a $3.0 million increase in outstanding debt (includes associated deferred inflows/outflows), and depreciation of $7.6 million. Restricted Restricted Net Position consists of unexpended development impact fees which may only be appropriated for a project included in the District’s Capital Improvement Program. During FY 2023-24 the District received $2.6 million in capacity fees while no restricted funds were used to fund current projects. A summary of the accumulation and use of these funds is presented as ‘Other Information’ in this document. The District is developing plans to use water impact fees for a new well and use wastewater treatment impact fees for an additional train of treatment membranes. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 28 Unrestricted Unrestricted Net Position is the balance after amounts to be classified as Net Investment in Capital Assets or Restricted have been determined. Unrestricted Net Position decreased $4.3 million to $19.8 million in FY 2023-24. Capital Assets The District spent approximately $9.8 million for expansion or replacement of property, plant, and equipment during FY 2023-24. These amounts are reflected in Utility Plant, or as additions to Construction in Progress, in the accompanying financial statements. Placed in Service During FY 2023-24, District staff, consultants, and contractors completed work on the following:  Completed construction of the Granulated Activated Carbon treatment process and installation of replacing the final train of filter membranes at the surface water treatment plant.  Rehabilitated the well at Plant 120 which had been out of service for almost ten years.  Replaced and upsized to 6”, approximately 900’ of water main in Valaria Drive, Darren Place, and Tiffani Place with District crews.  Completed construction on a $191.5 million water reclamation plant, known as the Sterling Natural Resource Center (SNRC), capable of recycling 6.0 million gallons of wastewater each day.  Installed approximately 6,500 feet of interceptor pipeline, ranging in size from 18” to 48”, to redirect wastewater flows to the newly commissioned SNRC.  Completed two groundwater monitoring wells. Utility Plant in Service – June 30th (in millions) Department 2024 2023 Water Source of Supply 21.4$ 19.8$ Pumping 15.3 15.2 Transmission & Distribution 102.7 102.2 Treatment 33.5 29.3 Wastewater Collection Lines 39.4 27.9 Reclamation Plant 176.0 - General Plant & Equipment 44.7 32.6 Total 433.0$ 227.0$ EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 29 Construction in Progress (CIP) Construction in Progress decreased $196.2 million to $491 thousand (see Note 4) during FY 2023-24 as the District placed in service the largest facility it has ever built or acquired, the SNRC water reclamation plant. During the year, $3.9 million in cost was added to CIP, $200 million was removed as the SNRC and 8 other projects were capitalized and placed in service, and another $168 thousand related to several small projects was expensed, leaving a balance at June 30, 2024 of $491 thousand. Approximately 30 projects, most related to new development, remain in progress at year end. Future Capital Improvements - Water The District’s ability to meet water quality requirements, promote water conservation, and increase efficiencies in conducting District business are the driving forces by which District management develops long-term capital plans. To meet these objectives, the District’s Five-Year Capital Improvement Plan includes the following projects:  Rehabilitate and extend the useful lives of aging water storage tanks.  Replace aging water distribution pipelines that require frequent repair and are suspected of causing system water losses.  Drill and equip three new wells to meet the demands of new development, and to replace the capacity of three existing wells taken out of service due to their proximity to recycled water recharge basins.  Partner with developers to increase the capacity of new storage tanks they plan to build to serve their projects. The District has been awarded 10% match funding under the State’s Prepare California Match Program for a $6.8 million project to complete seismic retrofits on several water storage tanks. A FEMA Hazard Mitigation Grant Program (HMGP) grant has been awarded for the design phase (Phase 1) of the project and should facilitate an award for the construction phase (Phase 2) once the design is completed. The District has also been awarded Phase 1 FEMA funding of over $1.1 million for design of a significant water main replacement project. Once design is complete, the District will work to finalize Phase 2 funding to cover up to $40 million in replacement of pipelines which qualify for hazard mitigation assistance. Future Capital Improvements - Wastewater The District maintains a list of recommended wastewater main replacements/rehabilitations based on assessments of pipeline conditions noted during video logging of the collection system. Pipelines assessed at the highest risk of structural failure are prioritized on the District’s Five-Year Capital Improvement Plan (CIP). The District will also update its Wastewater Collection System Master Plan during FY 2024-25 to identify undersized main pipelines that are susceptible to surcharging during heavy rains. Undersized pipelines can impede new development and will be included in discussions with developers as necessary. Pipelines identified in the District’s Wastewater Collection System Master Plan will be built into models developed for an update to the District’s capacity fees. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 30 Future Capital Improvements - Reclamation The SNRC has realized higher than expected influent flows during the first six months of treatment operations which, if they continue, will cause the District to install a fifth train of treatment membranes much sooner than anticipated. The four trains currently installed were intended to support an operating plan where three are in service while the fourth is offline for cleaning or maintenance. Current flow patterns can sometimes require that all four trains be available for filtering, so addition of the fifth train to help ensure the District can take a train offline for maintenance may be required. Underground facilities were all oversized to support addition of the fifth train, so just the treatment train itself will be required at an estimated cost of $8.5 million. Long Term Debt / Credit The District’s long-term debt consists of Revenue Bonds and loans from the California State Water Resources Control Board State Revolving Fund. Loans from U.S. Bank and San Bernardino Valley were paid off during FY 2023-24. Outstanding balances as of June 30, 2024 were as follows: Revenue Bonds 2020A Refunding Bonds 14,060,000$ 2020B Refunding Bonds 12,780,000 SWRCB Loans AVAD Construction 43,954 EFAD Construction 247,307 Plant 134 Construction 4,901,374 SNRC Construction 175,478,305 Total 207,510,940$ The funding agreement with the State Water Resources Control Board for the SNRC construction consists of a $168.3 million loan at 1.8% and a $6.7 million grant. Upon project completion, interest accrued on District draws against the loan during construction, totaling $7.2 million, was added to the loan balance for a total loan balance of $175.5 million. The State Water Resources Control Board considered the project complete in December 2023, and according to terms of the State Funding Agreement, the first payment on the loan is due one year after completion. Therefore, annual payments of approximately $7.6 million will commence at the end of December 2024. All scheduled debt payments for FY 2023-24 were paid timely. See Note 5 to the accompanying financial statement notes for further discussion about Long-Term Debt. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2024 31 $0 $50 $100 $150 $200 $250 2020 2021 2022 2023 2024 Mi l l i o n s Outstanding Long-Term Debt June 30th 2020B Bonds 2020A Bonds SBVMWD Loan US Bank Loan SRF Loans-Other SRF Loan-SNRC Standard & Poor’s and Fitch rated the District’s 2020 Series A and B Revenue Bonds at AA- at the time of issuance. Fitch affirmed this rating after a review of the District’s financial plans in June 2024. Dun & Bradstreet (D&B), based on audited financial statements and creditor input, also rated the District. The rating given by D&B is currently 5A1 accompanied by a financial condition assessment of ‘strong’, which is no change from previous years. Rate Increases On May 15, 2024, the District adopted rate adjustments for all three of the District’s enterprise activities, to be implemented in three phases. Wastewater Collection and Reclamation rate adjustment phases will become effective on July 1 of the next three years, and water rate adjustments will become effective on January 1 of the next three years. Additional information about the District’s water and wastewater rates can be found on the District’s website at www.eastvalley.org. Contacting the District’s Financial Management This financial report is designed to give our customers/ratepayers, creditors, and investors a general overview of the District’s finances, and to demonstrate the District’s accountability for money it receives, and stewardship over facilities it maintains. If you have questions about this report, or need additional information, contact the District’s Finance Department at 31111 Greenspot Road, Highland, California 92346, or call (909) 381-6463. 32 EAST VALLEY WATER DISTRICT Statement of Net Position June 30, 2024 The accompanying notes are an integral part of this statement. 33 For Comparative Purposes Only 2024 2023 ASSETS Current Assets: Cash and Cash Equivalents 8,197,155$ 10,465,911$ Investments 15,304,169 5,329,245 Accounts Receivable, Net 6,107,689 5,940,839 Interest Receivable 341,051 73,545 Other Receivables 1,959,106 1,847,810 Due from Other Governments 7,553,848 20,552,300 Inventory 1,061,891 974,820 Prepaid Expenses 775,440 256,800 Total Current Assets 41,300,349 45,441,270 Non-Current Assets: Restricted Cash and Cash Equivalents 15,207,521 12,357,894 Restricted Due from Other Governments 7,800,000 - Assessments Receivable 246,083 263,478 Capital Assets not being Depreciated 7,574,139 203,751,889 Capital Assets, Net 314,384,669 115,951,753 Total Non-Current Assets 345,212,412 332,325,014 Total Assets 386,512,761 377,766,284 DEFERRED OUTFLOWS OF RESOURCES Deferred Charge on Refunding 812,441 854,647 Deferred Outflows - Pensions 6,318,359 5,317,071 Deferred Outflows - OPEB 2,004,127 1,184,326 Total Deferred Outflows Of Resources 9,134,927 7,356,044 Total Assets and Deferred Outflows of Resources 395,647,688$ 385,122,328$ (Continued) EAST VALLEY WATER DISTRICT Statement of Net Position - Continued June 30, 2024 The accompanying notes are an integral part of this statement. 34 For Comparative Purposes Only 2024 2023 LIABILITIES Current Liabilities: Accounts Payable and Accrued Expenses 10,449,146$ 8,423,138$ Accrued Payroll and Benefits 944,585 825,377 Customer Service Deposits 1,439,016 1,403,962 Construction Advances and Retentions 140,317 12,142,565 Accrued Interest Payable 228,360 263,778 Current Portion of Compensated Absences 432,702 652,177 Current Portion of Long-Term Debt 6,183,942 2,555,654 Due to Other Governments 76,452 135,523 Total Current Liabilities 19,894,520 26,402,174 Non-Current Liabilities: Compensated Absences, Less Current Portion 1,108,524 775,590 Net Pension Liability 14,902,033 13,855,136 Net OPEB Liability 2,067,180 1,986,360 Long-Term Debt, Less Current Portion 203,977,262 191,256,816 Due to Other Governments 6,300,000 - Total Non-Current Liabilities 228,354,999 207,873,902 Total Liabilities 248,249,519 234,276,076 DEFERRED INFLOWS OF RESOURCES Deferred Inflows - Refunding 1,076,449 1,128,796 Deferred Inflows - Pensions 543,111 1,600,501 Deferred Inflows - OPEB 550,043 326,072 Total Deferred Inflows Of Resources 2,169,603 3,055,369 Total Liabilities and Deferred Inflows Of Resources 250,419,122 237,331,445 NET POSITION Net Investment in Capital Assets 112,073,604 112,909,956 Restricted for: Future Capital Expansion Projects 13,314,565 10,761,677 Unrestricted 19,840,397 24,119,250 Total Net Position 145,228,566$ 147,790,883$ EAST VALLEY WATER DISTRICT Statement of Revenues, Expenses, and Changes in Net Position Year Ended June 30, 2024 The accompanying notes are an integral part of this statement. 35 For Comparative Purposes Only 2024 2023 OPERATING REVENUES Water Sales 17,900,515$ 17,004,576$ Wastewater Treatment Charges 10,746,724 10,108,850 System Charges 16,222,435 15,483,115 Other Charges 1,060,541 1,213,471 Total Operating Revenues 45,930,215 43,810,012 OPERATING EXPENSES Water Department: Source of Supply 4,079,366 3,890,634 Pumping 883,731 1,003,038 Treatment 1,592,368 1,212,646 Transmission and Distribution 4,012,276 4,311,606 Customer Accounts 1,757,943 1,653,739 Total Water Department 12,325,684 12,071,663 Wastewater Department: Wastewater Collection 792,350 752,489 Customer Accounts 634,414 604,006 Total Wastewater Department 1,426,764 1,356,495 Reclamation Department: Treatment 10,411,256 9,601,461 Total Reclamation Department 10,411,256 9,601,461 Administrative and General 12,776,969 13,221,140 Operating Expenses Before Depreciation 36,940,673 36,250,759 Depreciation 7,624,666 6,264,377 Total Operating Expenses 44,565,339 42,515,136 Operating Income 1,364,876$ 1,294,876$ (Continued) EAST VALLEY WATER DISTRICT Statement of Revenues, Expenses, and Changes in Net Position - Continued Year Ended June 30, 2024 The accompanying notes are an integral part of this statement. 36 For Comparative Purposes Only 2024 2023 NON-OPERATING REVENUES (EXPENSES) Investment Income 1,136,502$ 352,273$ Gain on Disposal - 30,134 Other Income 39,064 49,404 Interest Expense (789,683) (869,397) Unrealized Investment Gain 130,536 - Unrealized Investment Losses - (87,280) Total Non-Operating Revenues (Expenses) 516,419 (524,866) Income Before Contributions 1,881,295 770,010 CONTRIBUTIONS Capacity Charges 2,556,388 1,860,020 Operating Grants - 62,032 Total Contributions 2,556,388 1,922,052 SPECIAL ITEM Settlement Obligation - Wastewater Treatment Authority Disassociation (7,000,000) - CHANGE IN NET POSITION (2,562,317) 2,692,062 TOTAL NET POSITION, BEGINNING 147,790,883 145,098,821 TOTAL NET POSITION, ENDING 145,228,566$ 147,790,883$ EAST VALLEY WATER DISTRICT Statement of Cash Flows Year Ended June 30, 2024 The accompanying notes are an integral part of this statement. 37 For Comparative Purposes Only 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 45,687,123$ 45,004,610$ Cash Payments for Employees Services (13,812,566) (12,286,780) Cash Payments to Suppliers (22,969,278) (21,332,407) Cash to/(from) Other Sources 39,064 49,404 Net Cash Provided by Operating Activities 8,944,343 11,434,827 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Reimbursements Received 6,579,416 3,103,376 Grant Funds Received - 62,032 Proceeds from Sale of Capital Assets - 40,093 Developer Fees Received 2,556,388 1,860,020 Assessments Received 131,891 93,827 Proceeds/Draws from SRF Loan 8,813,935 2,705,185 Due (From) To Water Fund (2,655,077) - Due (From) To Reclamation Fund 5,661,647 - Due (From) To Other Agencies (623,548) - Principal Paid on Capital Debt (3,242,553) (2,336,691) Interest Paid on Capital Debt (998,343) (1,024,807) Acquisition of Capital Assets (15,497,342) (14,771,878) Net Cash Provided (Used) by Capital and Related Financing Activites 726,414 (10,268,843) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received from Investments 743,713 224,214 Acquisition of Investments (11,398,599) (1,139,837) Proceeds from Sale of Investments 1,565,000 299,203 Net Cash Provided (Used) by Investing Activities (9,089,886) (616,420) Net Increase (Decrease) in Cash and Cash Equivalents 580,871 549,564 Cash and Equivalents, Beginning of Year 22,823,805 22,274,241 Cash and Equivalents, End of Year 23,404,676$ 22,823,805$ RECONCILIATION TO STATEMENT OF NET POSITION Cash and Cash Equivalents 8,197,155$ 10,465,911$ Restricted Cash and Cash Equivalents 15,207,521 12,357,894 Total Cash and Cash Equivalents 23,404,676$ 22,823,805$ (Continued) EAST VALLEY WATER DISTRICT Statement of Cash Flows - Continued Year Ended June 30, 2024 The accompanying notes are an integral part of this statement. 38 For Comparative Purposes Only 2024 2023 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating Income 1,364,876$ 1,294,874$ Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation 7,624,666 6,264,377 Miscellaneous Income/(Expense) 39,064 49,404 CIP Projects Expensed 168,183 18,656 Change in Assets and Liabilities: (Increase) Decrease in Accounts Receivable (166,850) 1,412,339 (Increase) Decrease in Inventory (87,071) (30,281) (Increase) Decrease in Prepaids (518,642) 13,697 (Increase) in Deferred Outflows of Resources - Pensions (1,821,089) (3,682,347) Increase (Decrease) in Accounts Payable 1,890,483 3,274,023 Increase (Decrease) in Accrued Salaries and Benefits 119,209 52,612 Increase (Decrease) in Compensated Absences 113,459 140,139 Increase (Decrease) in Net Pension Liability 1,046,897 7,197,447 Increase in Net OPEB Liability 80,819 124,485 Decrease in Deferred Inflows of Resources (833,419) (4,477,032) Increase (Decrease) in Customer Deposits (111,296) (231,483) Increase (Decrease) in Developer Deposits 35,054 13,917 Total Cash Provided by Operating Activities 8,944,343$ 11,434,827$ NON-CASH INVESTING, CAPITAL, AND NON-CAPITAL FINANCING ACTIVITIES: Fair Value Adjustments to Investments 130,536$ 300,746$ Receivable Offset by Debt 8,616,385$ 13,349,674$ -$ 1,953,751$ Capital Assets Acquired by Assuming Liabilities, Including Retainage Payable EAST VALLEY WATER DISTRICT Statement of Fiduciary Net Position June 30, 2024 The accompanying notes are an integral part of this statement. 39 Custodial Funds ASSETS Current Assets: Due from Other Governments 76,662$ Restricted Cash and Cash Equivalents 3,773,219 Property Taxes and Assessment Receivable 5,590,375 Total Assets 9,440,256 LIABILITIES Current Liabilities: Accounts Payable and Accrued Expenses 5,854,503$ Customer Deposits, Retentions and Advances 3,585,753 Total Liabilities 9,440,256 NET POSITION Restricted for CFDs - Total Net Position -$ EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 40 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A) Reporting Entity The East Valley Water District is a special district that was formed in 1954, as a result of an election by local residents who desired water service by a public water agency. Later, as the population increased, a modern wastewater system was needed to replace the septic tanks used at the time. Citizens voted to give the District responsibility for that service. The District encompasses an area of approximately 30.1 square miles and provides water and wastewater service to the City of Highland, parts of the City of San Bernardino, and unincorporated parts of the County of San Bernardino, California. The East Valley Water District Financing Authority (Authority), and the North Fork Water Company (Company) are component units of the East Valley Water District. A component unit is an entity which is financially accountable to the primary government, either because the primary government appoints a voting majority of the component unit's Board, or because the component unit will provide a financial benefit or impose a financial burden on the primary government. The Authority, and Company are blended component units. Only North Fork Water Company prepares separate financial statements. The Authority was created in August 2010 by a joint exercise of powers agreement for the purpose of financing public capital improvements. It is governed by a Board of Directors comprised of the District's Board of Directors. The Authority issued debt in October 2010 which is secured solely from installment payments under an installment purchase agreement entered into by the District and the Authority. The Company was established in February 1885 to deliver water, taken from the Santa Ana River to its property owner /shareholders. The Company is governed by a Board of Directors comprised of, and elected by, Company shareholders. The District has purchased shares of Company stock as they become available to secure rights to the Santa Ana River water and have it delivered to the District's surface water treatment plant. At June 30, 2024, the District owned 7,147 of 7,156 outstanding Company shares. Due to the number of Company shares owned, the District is able to appoint a majority of the Company’s Governing Board and is therefore financially accountable for the Company. In addition, management and staff of the District have complete responsibility for the operations of the Company. As a result, the Company's financial statements have been included in the accompanying financial statements as a blended component unit. Copies of the Company's financial statements may be obtained from the District’s Finance Department at 31111 Greenspot Road, Highland, California 92346. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 41 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued The following condensed combining schedule shows how the District, and its component units are blended in the accompanying financial statements: Table 1-1 District NFWC Eliminations Total Statement of Net Position Current Assets 41,288,277$ 12,072$ -$ 41,300,349$ Capital Assets 321,418,733 2,606,306 (2,066,231) 321,958,808 Other Assets 23,112,511 141,093 - 23,253,604 Deferred Outflows 9,134,927 - 9,134,927 Total Assets & Deferred Outflows 394,954,448 2,759,471 (2,066,231) 395,647,688 Current Liabilities 19,853,193 41,327 - 19,894,520 Long-Term Liabilities 228,354,999 - - 228,354,999 Deferred Inflows 2,169,603 - - 2,169,603 Total Liabilities & Deferred Inflows 250,377,795 41,327 - 250,419,122 Net Investment in Capital Assets 105,199,386 2,640,449 (2,066,231) 105,773,604 Restricted Net Position 13,236,870 77,695 - 13,314,565 Unrestricted Net Position 26,140,397 - 26,140,397 Total Net Position 144,576,653$ 2,718,144$ (2,066,231)$ 145,228,566$ Statement of Changes in Net Position Sales and Services 44,869,674$ -$ -$ 44,869,674$ Other Operating Revenue 1,060,541 - 1,060,541 Operating Expenses 36,772,841 167,832 - 36,940,673 Depreciation 7,568,829 55,837 - 7,624,666 Operating Income 1,588,545 (223,669) - 1,364,876 Net Non-Operating Revenue (Expenses)401,923 114,496 - 516,419 Capital Contributions 2,556,388 - - 2,556,388 Special Items (7,000,000) - - (7,000,000) Change in Net Position (2,453,144) (109,173) - (2,562,317) Beginning Net Position 147,029,797 2,827,317 (2,066,231) 147,790,883 Ending Net Position 144,576,653$ 2,718,144$ (2,066,231)$ 145,228,566$ Net Cash from Operating Activities 9,076,282$ (131,939)$ -$ 8,944,343$ Net Cash from Capital and Related Financing Activities 610,527 115,887 - 726,414 Net Cash from Investing Activities (9,089,886) - (9,089,886) Beginning Cash and Equivalents 22,666,660 157,145 - 22,823,805 Ending Cash & Equivalents 23,263,583$ 141,093$ -$ 23,404,676$ B) Measurement Focus, Basis of Accounting and Financial Statement Presentation The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The District uses the economic resources measurement focus and the accrual basis of accounting. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 42 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Accordingly, revenues are recognized when they are earned, and expenses are recorded when the liability is incurred. Fiduciary fund financial statements include a statement of fiduciary net position. The District has one type of fiduciary fund presented: a custodial fund, which is used to account for Community Facilities District assessments, debt issuances, the financing of eligible public facilities, and debt service. All of the assets in this fund are matched by a liability to parties on whose behalf they are held. Accordingly, there is no balance for Net Position, and no Statement of Changes in Net Position. The custodial funds are used to report resources held by the District in a purely custodial capacity, which involves only the receipt, temporary investment and remittance of fiduciary resources to individuals, private organizations or other governments. Custodial funds use the economic resource measurement focus. C) Comparative Data Prior year data has been included where practical for comparison purposes only. The prior year data does not represent a complete presentation in accordance with accounting principles generally accepted in the United States of America. D) Inventory Valuation Inventories are valued at cost using the average-cost method. E) Capitalization and Depreciation Capital assets purchased or constructed by the District are recorded at cost. Donated capital assets are recorded at actual or estimated acquisition value as of the date received. The District has a capitalization threshold of $5,000. Depreciation is computed using the straight-line method over the estimated useful lives of the various assets. Water canals, water, and wastewater lines are depreciated over 25 to 50 years; office equipment and vehicles are depreciated over 5 years. Water stock and rights contributed to the District are recorded at the same value the District is currently paying for the purchase of similar stock. F) Restricted Assets Certain assets of the District are restricted in use by ordinance or debt covenant and accordingly are shown as restricted assets on the accompanying statement of net position. Unexpended Bond proceeds are set aside for capital improvements, District deposits into Bond trustee accounts are to be used for debt service, and utility deposits must be returned to the customers at their request after their account has been paid timely for 12 consecutive months, or when their account is closed. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 43 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued G) Cash and Cash Equivalents For the purposes of the statement of cash flows, cash and cash equivalents have been defined as demand deposits and highly liquid investments purchased with an original maturity of 3 months or less. The District invests funds with the Local Agency Investment Fund (LAIF) and Money Market Mutual Funds. Due to the high liquidity of these investments, these funds are classified as cash equivalents. H) Investments The District has adopted the provisions of GASB Statement No. 72, Fair Value Measurement and Application. The objective of this Statement is to enhance comparability of financial statements among governments by measurement of certain assets and liabilities at their fair value using a consistent and more detailed definition of fair value and accepted valuation techniques. The definition of fair value is the price that would be received to sell and asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Statement establishes a hierarchy of inputs to valuation techniques used to measure fair value. I) Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District has three items which qualify for reporting in this category: Deferred Outflows Charge on Refunding, Deferred Outflows Related to Pensions, and Deferred Outflows Related to OPEB. In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District has three items which qualify for reporting in this category: Deferred Inflows related to Pensions, Deferred Inflows related to OPEB, and Deferred Inflows related to Bond Refinancing. J) Compensated Absences The District has a policy whereby an employee can accumulate unused sick leave and vacation. Sick leave is to be used for extended periods of sickness; however, upon termination or retirement, a portion will be paid as additional benefits to the employee. At retirement or termination, employees who have accumulated over ten years of service will be paid between 50 to 70% of their unused sick leave (based upon their balance of unused sick leave) at their regular payroll rates in effect at the date of termination. Also, employees can cash out up to 300 hours of unused sick time, per calendar year, provided that a minimum of 160 hours is retained after said cash-out. The District has provided for these future costs by accruing a range of the earned and unused sick leave and 100% of the earned and unused vacation. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 44 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued K) Classification of Revenue As an enterprise (proprietary) fund, the District classifies its revenues into three classifications: operating revenue, non-operating revenue, and contributions. Operating revenues are defined as revenues realized by the District in exchange for providing its primary services of water distribution, wastewater collection, and water reclamation to its customers. Non-operating revenues are those derived from the investment of cash reserves and from the disposal of excess property, and include those resources received from entities other than customers, such as governmental agencies and developers, for purposes not related to capital improvement. Donated plant and cash received for capital improvement without the requirement that the District give resources in exchange are recorded as contributions. L) Use of Restricted Resources The District uses restricted resources, prior to using unrestricted resources, to pay expenses meeting the criteria imposed on the use of restricted resources by a third party. M) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. N) Pension For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used. Valuation Date June 30, 2022 Measurement Date June 30, 2023 Measurement Period July 1, 2022 to June 30, 2023 O) Postemployment Benefits Other Than Pensions (OPEB) For purposes of measuring the District’s OPEB liability related to the California Employer’s Retirement Benefits Trust (CERBT), deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the CERBT and additions to/deductions. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 45 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued from the CERBT fiduciary net position have been determined on the same basis as they are reported by the CERBT. For this purpose, the CERBT recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments and participating interest earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost. P) Future Accounting Pronouncements The applicable GASB Statements listed below will be implemented in future financial statements: Table 1-2 GASB Statement Description Effective Date Statement No. 101 Compensated Absences Updates the recognition and measurement guidance for compensated absences by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The statement is effective for fiscal years beginning after December 15, 2023. Statement No. 102 Certain Risk Disclosures Governments must disclose vulnerabilities related to significant concentrations or constraints that impact their financial stability. Concentrations refer to a lack of diversity in resource flows, while constraints are limitations on resource acquisition or spending. If these factors pose substantial risks, governments must disclose the nature of the risk, related events, and any actions taken to mitigate it in their financial statements. The statement is effective for fiscal years beginning after June 15, 2024. Statement No. 103 Financial Reporting Model Improvements Provides guidelines for the accounting and reporting of derivative instruments in governmental entities, focusing on their recognition, measurement, and disclosure. It distinguishes between hedging and investment derivatives, requiring different reporting for each, with all derivatives measured at fair value. The standard also mandates evaluating hedging effectiveness and requires detailed disclosures to enhance financial transparency. The statement is effective for fiscal years beginning after June 15, 2025. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 46 2) CASH AND INVESTMENTS Cash and Investments as of June 30, 2024 are classified in the accompanying financial statements as follows: Table 2-1 Cash and Cash Equivalents 8,197,155$ Restricted Cash and Cash Equivalents 15,207,521 Investments 15,304,169 Total 38,708,845$ Cash and investments as of June 30, 2024 consist of the following: Table 2-2 Cash on Hand 9,000$ Deposits with Financial Institutions 3,367,263 Money Market Accounts with Financial Institutions 683,021 Investments with Local Agency Investment Fund 19,345,392 Investment in Debt Securities 15,304,169 Total 38,708,845$ Investments Authorized by the California Government Code and the District’s Investment Policy The table below identifies the investment types that are authorized by the District's investment policy and in accordance with Section 52601 of the California Government Code. The table also identifies certain provisions of the District's investment policy that address interest rate risk and concentration of credit risk. Table 2-3 Authorized Investment Type Maximum Maturity Authorized Limit Required Rating Municipal Securities including EVWD Issues 5 years None None U.S. Treasury Bills, Notes, or Bonds 5 years None None State Registered Warrants, Notes, or Bonds 5 years None None Notes and Bonds of other Local California Agencies 5 years None None U.S. Agencies 5 years None None Placement Service Deposits 5 years 30% None Money Market Mutual Funds and Mutual Funds 5 years 15% 2 - AAA Collateralized Bank Deposits 5 years None None Commercial Papers 270 days 5% A Medium Term Notes 5 years 30% AA Local Government Investment Pools N/A 25% AA Local Agency Investment Fund (LAIF) N/A None None At June 30, 2024, the District had no investments in repurchase agreements and did not utilize this investment media during the reporting year. As a matter of investment policy, the District does not borrow funds with reverse repurchase agreements. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 47 2) CASH AND INVESTMENTS - Continued Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the District minimizes its exposure to this type of risk is by investing in investments with laddered maturity dates. As of June 30, 2024, the District had the following investments and maturities: Table 2-4 Investment Type Fair Value Average Maturity Fannie Mae 498,570$ 2.74 years Freddie Mac 1,042,049 2.05 years Federal Home Loan Bank 7,863,711 1.57 years Federal Farm Credit Bank 583,176 1.49 years US Treasury 5,018,274 1.48 years Tenn Valley Authority 298,389 0.21 years LAIF 19,345,392 N/A Money Market Mutual Funds 683,021 N/A 35,332,582$ Disclosures Relating to Credit Risk Generally, credit risk is the risk that the issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or the District’s investment policy, and the actual rating as of year-end for each investment type. Table 2-5 Investment Type Fair Value Minimum Legal Rating Exempt From Disclosure Rating at Year End AAA Not Rated Fannie Mae 498,570$ N/A -$ 498,570$ -$ Freddie Mac 1,042,049 N/A - 1,042,049 - Federal Home Loan Bank 7,863,711 N/A - 7,863,711 - Federal Farm Credit Bank 583,176 - 583,176 - US Treasury 5,018,274 N/A 5,018,274 - - Tenn Valley Authority 298,389 N/A - 298,389 - LAIF 19,345,392 N/A - - 19,345,392 Money Market Mutual Funds 683,021 N/A - 683,021 - 35,332,582$ 5,018,274$ 10,968,916$ 19,345,392$ EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 48 2) CASH AND INVESTMENTS - Continued Fair Value Measurements The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. These principles recognize a three-tiered fair value hierarchy, as follows:  Level 1: Investments reflect prices quoted in active markets;  Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered to be active; and  Level 3: Investments reflect prices based upon unobservable sources. Valuation Technique: Level 2 Investments use the Market Approach which uses prices generated for identical or similar assets or liabilities. The District has the following recurring fair value measurements as of June 30, 2024: Table 2-6 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Investments by Fair Value Level (Level 1)(Level 2)(Level 3)Total Debt Securities Fannie Mae 498,570$ -$ -$ 498,570$ Freddie Mac 1,042,049 - - 1,042,049 Federal Home Loan Bank 7,863,711 - - 7,863,711 Federal Farm Credit Bank 583,176 - - 583,176 US Treasury 5,018,274 - - 5,018,274 Tenn Valley Authority 298,389 - - 298,389 Total Investments Measured at Fair Value 15,304,169$ -$ -$ 15,304,169$ Investments Measured at Amortized Cost LAIF 19,345,392 Money Market Mutual Funds 683,021 Total Investments 35,332,582$ Fair Value Measurements Using Disclosure Related to Concentration of Credit Risk The District's policy places no limits on amounts invested in any given issuer beyond that stipulated by the California Government Code. At June 30, 2024, there were no investments (other than external pools, U.S. Government Securities and Money Market Mutual Funds) that exceeded 5% of the District's total investments. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 49 2) CASH AND INVESTMENTS - Continued Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code requires California banks and savings and loan associations to secure deposits by pledging government securities as collateral. Such collateralization of public funds is accomplished by pooling. As such, collateralized securities are held by the pledging financial institution's agent on behalf of the District. The fair value of the pledged securities must equal at least 110% of Districts deposits. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The District may waive collateral requirements for deposits which are fully insured by Federal depository insurance. As of June 30, 2024, the District had $2,422,821 deposited with financial institutions that were in excess of federal depository insurance limits. The federal deposit insurance limit is $250,000. Investment in State Investment Pool The management of the State of California Pooled Money Investment Account (generally referred to as LAIF) has reported to its participating agencies that, as of June 30, 2024, the carrying amount (at amortized cost) of the pool was $178,914,245,370 and the estimated fair value of the pool was $178,255,132,764. LAIF is regulated by the California Government Code under the oversight of the Treasurers of California. The District's proportionate share of the fair value (as determined by LAIF) as of June 30, 2023, was $19,345,392. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain State funds, and floating rate securities issued by federal agencies, government- sponsored enterprises, and corporations. Currently LAIF does not have an investment rating. LAIF has a minimum $5,000 transaction amount in increments of $1,000 with a maximum of 15 transactions (combination of deposits and withdrawals) per month. LAIF requires a one-day prior notice for deposits and withdrawals of $10 million or more. 3) RESTRICTED CASH AND CASH EQUIVALENTS Restricted cash and cash equivalents at June 30, 2024 are restricted as follows: Table 3-1 Held for Debt Service 3,912,101$ Capacity Fees from Developers 9,606,710 Customer Deposits 1,438,112 Construction Advances 109,500 North Fork Water Company 141,098 Total 15,207,521$ EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 50 4) CAPITAL ASSETS A summary of changes in capital assets for the year ended June 30, 2024 is as follows: Table 4-1 Beginning of End of Year Additions Deletions Adjustments Year Water Fund Non-Depreciable Assets Land and Easements 3,651,696$ -$ -$ -$ 3,651,696$ Water Rights 732,835 - - - 732,835 Construction in Progress 16,322,519 178,247 (16,159,664) - 341,102 Total Non-Depreciable Assets 20,707,050 178,247 (16,159,664) - 4,725,633 Depreciable Assets Source of Supply 19,814,229 1,569,534 - - 21,383,763 Pumping Plant 15,245,780 74,922 - - 15,320,702 Treatment Plant 29,348,773 4,195,133 - - 33,543,906 Transmission and Distribution Plant 102,198,997 525,620 - - 102,724,617 General Plant 22,561,909 11,774,603 (24,168) - 34,312,344 Total Depreciable Assets 189,169,688 18,139,812 (24,168) - 207,285,332 Accumulated Depreciation Source of Supply (9,770,671) (672,834) - - (10,443,505) Pumping Plant (8,494,490) (490,186) - - (8,984,676) Treatment Plant (14,485,771) (759,109) - - (15,244,880) Transmission and Distribution Plant (47,766,844) (2,529,737) - - (50,296,581) General Plant (9,697,208) (1,195,863) 24,168 - (10,868,903) Total Accumulated Depreciation (90,214,984) (5,647,729) 24,168 - (95,838,545) Water Fund Capital Assets, Net 119,661,754 12,670,330 (16,159,664) - 116,172,420 Wastewater Fund Non-Depreciable Assets Land and Easements 2,698,706 - - - 2,698,706 Construction in Progress 14,813,261 735,301 (15,398,762) - 149,800 Total Non-Depreciable Assets 17,511,967 735,301 (15,398,762) - 2,848,506 Depreciable Assets Wastewater Collection Plant 27,872,913 11,546,444 - - 39,419,357 General Plant 9,953,747 265,296 (14,620) - 10,204,423 Total Depreciable Assets 37,826,660 11,811,740 (14,620) - 49,623,780 Accumulated Depreciation Wastewater Collection Plant (16,428,368) (532,539) - - (16,960,907) General Plant (4,401,245) (391,713) 14,620 - (4,778,338) Total Accumulated Depreciation (20,829,613) (924,252) 14,620 - (21,739,245) Wastewater Fund Capital Assets, Net 34,509,014 11,622,789 (15,398,762) - 30,733,041 Water Reclamation Fund Non-Depreciable Assets Construction in Progress 165,532,873 1,319,042 (166,851,915) - - Total Non-Depreciable Assets 165,532,873 1,319,042 (166,851,915) - - Depreciable Assets Reclamation Plant - 175,990,516 - - 175,990,516 General Plant - 115,515 - - 115,515 Total Depreciable Assets - 176,106,031 - - 176,106,031 Accumulated Depreciation Reclamation Plant - (1,048,372) - - (1,048,372) General Plant - (4,312) - - (4,312) Total Accumulated Depreciation - (1,052,684) - - (1,052,684) Water Reclamation Fund Capital Assets 165,532,873 176,372,389 (166,851,915) - - Total Capital Assets, Net 319,703,641$ 200,665,508$ (198,410,341)$ -$ 321,958,808$ EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 51 5) LONG-TERM DEBT The schedule below summarizes changes in long-term debt during the year ended June 30, 2024: Table 5-1 Beginning of Year Additions Retirements/ Payments End of Year Current Portion Long-Term Portion Direct Placement: 2020A Refunding Bonds 15,050,000$ -$ (990,000)$ 14,060,000$ 1,030,000$ 13,030,000$ 2020A Unamortized Premium 2,813,365 - (163,101) 2,650,264 163,101 2,487,163 2020B Refunding Bonds 13,060,000 - (280,000) 12,780,000 275,000 12,505,000 Subtotal Direct Placement 30,923,365 - (1,433,101) 29,490,264 1,468,101 28,022,163 Direct Borrowing: U.S. Bank Lease Purchase 444,375$ -$ (444,375)$ -$ -$ -$ SBVMWD Loan 1,275,000 - (1,275,000) - - - DWR Contracts: AVAD Construction 50,716 - (6,762) 43,954 6,762 37,192 Plant 134 Construction 5,134,773 - (233,399) 4,901,374 233,399 4,667,975 EFAD Construction 260,323 - (13,016) 247,307 13,016 234,291 SNRC 155,723,918 19,754,387 - 175,478,305 4,462,664 171,015,641 Subtotal Direct Borrowing 162,889,105 19,754,387 (1,972,552) 180,670,939 4,715,841 175,955,098 Total 193,812,470$ 19,754,387$ (3,405,653)$ 210,161,203$ 6,183,942$ 203,977,261$ 2020 Revenue Bonds Series 2020A - On September 10, 2020, the District issued $16,885,000 of East Valley Water District Refunding Revenue Bonds, Series 2020A (2020A Bonds), to accomplish a current refunding of then outstanding 2010 Revenue Bonds ($21,635,000). The 2020A Bonds carry interest rates ranging from 3.00% to 5.00% and will be repaid in various principal increments with the final payment due on October 1, 2040. The refunded 2010 Bonds carried interest rates ranging from 4.00% to 5.00% and were due in various principal increments until October 1, 2040. The 2020A bonds were issued at a premium of $3,261,890, and after paying issuance costs of $161,885, net proceeds were $19,985,005. The net proceeds, combined with a $2,129,931 sinking fund for 2010 bond debt service, were sufficient to accomplish the refunding of the existing debt. All refunded debt has been retired. The refunding resulted in a difference between the reacquisition price and the carrying amount of the old debt of $259,548. This difference is included in the accompanying financial statements as a Deferred Outflows of Resources and is being charged to operations through the year 2040 using the straight-line method of amortization. The District completed the refunding to decrease total debt service over the next 20 years by $6,052,794, and to obtain an economic gain (difference between the present values of the old and new debt service payment) of $4,765,023. Series 2020B - Also on September 10, 2020, the District issued $13,615,000 of East Valley Water District Refunding Revenue Bonds, Series 2020B (2020B Bonds), to accomplish an advance refunding of then outstanding 2013 Revenue Bonds ($12,085,000). The 2020B Refunding Bonds carry interest rates from 0.42 % to 2.93 % (federally taxable) and will be repaid in various principal increments with the final payment due EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 52 5) LONG-TERM DEBT - Continued on October 1, 2043. The refunded 2013 Bonds carried interest rates ranging from 4.00% to 5.00% and were due in various principal increments until October 1, 2043. The 2020B bonds were issued at face value, and after paying issuance costs of $123,500, net proceeds were $13,491,500. The net proceeds, combined with a $292,563 sinking fund held for 2013 bond debt service, were used to purchase US Government securities which were deposited in an irrevocable trust with an escrow agent to provide debt service on the 2013 Bonds until October 1, 2023 on which date all outstanding bonds will be redeemed. The advance refunding met the requirements of an in-substance defeasance therefore; accordingly, the 2013 Revenue Bonds are no longer reflected as a liability on the accompanying financial statements. The refunding resulted in a difference between the reacquisition price and the carrying amount of the old debt of $259,548. This difference is included in the accompanying financial statements as a Deferred Outflows of Resources and is being charged to operations through the year 2043 using the straight-line method of amortization. The District completed the refunding to decrease total debt service over the next 23 years by $3,014,190, and to obtain an economic gain (difference between the present values of the old and new debt service payment) of $2,154,117. US Bank Lease Purchase On November 13, 2013 the District entered into a Lease Purchase Agreement with US Bancorp Government Leasing and Finance, Inc. (US Bank), to implement Energy Conservation Measures (ECM) identified in a comprehensive energy conservation and operational efficiency study prepared by Honeywell International, Inc. (Honeywell). Honeywell had been contracted to install the facilities necessary to achieve the energy savings identified in their study and has guaranteed that the savings will be sufficient to pay the debt service on the lease with US Bank. Project costs paid to Honeywell, and the amount borrowed from US Bank under the lease agreement was $3,998,560 with an interest rate of 2.38%. Semi-annual payments are $226,398, to commence in September 2014 through March 2024. As of June 30th, 2024, the District fully paid off its outstanding debt related to US Bank Lease Purchase, with no remaining obligations under the debt agreement. San Bernardino Valley Municipal Water District - City Creek Turnout and Plant 134 Hydroelectric Station Loan On January 20, 2015, the District entered into an agreement with the SBVMWD for the construction, financing, and maintenance of a turnout by which the District’s surface water treatment plant can receive State Project water. The total amount borrowed for construction of the project is $4,367,927 bearing interest at the State of California Local Agency Investment Fund (LAIF) apportionment rate, which is 0.75% at June 30, 2022. Debt service payments are to be made annually on February 1st over ten years. As of June 30th, 2024, the District fully paid off its outstanding debt related to City Creek Turnout and Plant 134 Hydroelectric Station Loan, with no remaining obligations under the debt agreement. Department of Water Resources Contract 00C412 - Arroyo Verde Assessment District (AVAD) On June 30, 2004, the District entered into a Funding Agreement for replacement of distribution pipelines in the section of the District's service area formerly served by the Arroyo Verde Water Company. The original loan EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 53 5) LONG-TERM DEBT - Continued amount was $169,052 with an annual interest rate of 0%. Semi-annual payments of $3,381 are due through January 2031 and are secured by annual assessments to property owners within the Arroyo Verde Assessment District. The indenture authorizes, upon default, the Trustee to declare immediate due and payable the total unpaid principal of the Bonds and accrued interest thereon. Department of Water Resources Contract 10CX110 - Plant 134 On December 21, 2010, the District entered into a Funding Agreement to upgrade treatment methods utilized by the District's surface water treatment plant (Plant 134). The amount borrowed under the agreement is $7,001,964 with an annual interest rate of 0%. Semi-annual payments of $116,699 are due through January 2045 and are secured by a pledge of net revenues of the District's water operating fund. The indenture authorizes, upon default, the State to declare immediate due and payable the total unpaid principal of the debt and accrued interest thereon. Department of Water Resources Contract 11CX101 - Eastwood Farms Assessment District (EFAD) On June 15, 2011 the District entered into a Funding Agreement for replacement of distribution pipelines in the section of the District's service area formerly serviced by the Eastwood Farms Water Users Association. The amount of the loan is $390,482 with an annual interest rate of 0%. Semi-annual payments of $6,508 are due for 30 years through January 2043. Repayment of the loan is secured by annual assessments to property owners within the Eastwood Farms Assessment District. The indenture authorizes, upon default, the Trustee to declare immediate due and payable the total unpaid principal of the Bonds and accrued interest thereon. California State Water Resources Control Board Contract C-06-8106-110 – Sterling Natural Resource Center On June 26, 2018, the District entered into a Funding Agreement with the State Water Resources Control Board for the construction of a 6 million gallon per day (mgd) water recycling plant known as the Sterling Natural Resource Center (SNRC). The initial agreement plus two amendments provides $175 million for the plant’s construction and includes a $6.7 million grant and a low interest (1.8%) loan for the balance of $168.3 million. During fiscal year 2023-24 the District completed construction on the SNRC, and all reimbursement requests totaling $175 million had been submitted to the state as required by the SWRCB funding agreement. At June 30, 2024, approximately $15.4 million of reimbursement requests were outstanding and are included in a receivable Due From Other Governments in the accompanying financial statements. As the SWRCB has not paid out all the loan funds, a final 30-year amortization schedule for the loan has not been produced. However, the first payment on the loan is due by the end of December 2024, so providing a repayment schedule for purposes of District financial reporting is essential. Accordingly, the District has produced a schedule based on the maximum loan amount of $168.3 million, plus construction period interest of $7.2 million accrued on loan draws that were taken during construction for a total amortizable balance of $175.5 million. This amount amortized over 30 years at an interest rate of 1.8% results in an annual payment of $7.6 million. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 54 5) LONG-TERM DEBT - Continued The District has pledged available water and wastewater revenue for the repayment of the loan, including the following new revenue streams:  Wastewater treatment charges (previously paid to the City of San Bernardino);  Sale of electrical energy produced by plant digesters (beyond energy used on site);  Local Resource Investment Program fees for recycled water delivered for groundwater recharge; and  Tipping fees from waste haulers. The aggregate debt service requirements to maturity for long-term debt as of June 30, 2024 are as follows (excludes unamortized premiums/discounts): Table 5-2 Year Ending June 30, Principal Interest Total 2025 6,020,841$ 4,044,047$ 10,064,888$ 2026 5,746,169 3,920,718 9,666,887 2027 5,867,943 3,805,237 9,673,180 2028 5,986,189 3,685,875 9,672,064 2029 6,105,933 3,562,542 9,668,475 2030-2034 32,466,523 15,838,016 48,304,539 2035-2039 35,940,843 12,367,079 48,307,922 2040-2044 39,962,426 8,553,537 48,515,963 2045-2049 33,282,036 5,057,732 38,339,768 2050-5054 36,132,037 1,974,332 38,106,369 207,510,940$ 62,809,115$ 270,320,055$ Security for debt is as follows: Table 5-3 Debt Security 2020A and 2020B Refunding Revenue Bonds and Department of Water Resources Construction Loans The District is required to maintain net revenues, as defined by the revenue bond trust agreements and State of California Department of Public Health Funding agreements of at least 120% of District's annual debt service (principal and interest). At June 30, 2024, net water revenues represented 323% of the annual water debt service and net wastewater revenues represented 770% of the annual wastewater debt service. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 55 6) COMPENSATED ABSENCES Compensated absences are comprised of unused vacation leave and a limited amount of sick leave which is accrued as earned in accordance with District policy. The District's liability for compensated absences is determined annually. Current portions are determined based on estimates of usage, amounts in excess of 196 hours that will be voluntarily cashed out and amounts that will be cashed out upon termination of employment. Table 6-1 Beginning of Year Additions Usage / Payments End of Year Current Portion Long-Term Portion Accrued Vacation Leave 702,543$ 685,482$ (588,030)$ 799,995$ 296,818$ 503,177$ Accrued Sick Leave 725,224 401,308 (385,301) 741,231 135,884 605,347 Total 1,427,767$ 1,086,790$ (973,331)$ 1,541,226$ 432,702$ 1,108,524$ 7) NET INVESTMENT IN CAPITAL ASSETS Net Investment in capital assets at June 30, 2024 consisted of the following: Table 7-1 Non-Depreciable Capital Assets 7,574,139$ Depreciable Capital Assets 433,015,143 Accumulated Depreciation (118,630,474) North Fork Water Company 540,008 Loans Payable (180,670,940) Bonds Payable (29,490,264) Deferred Inflows (1,076,449) Deferred Ouflows 812,441 Total 112,073,604$ 8) DEFINED BENEFIT PENSION PLAN (PERS) A) General Information about the Pension Plans Plan Description All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost- Sharing Multiple-Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The District participates in two rate plans (two miscellaneous). Benefit provisions under the Plan are established by State statute and District’s resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 56 8) DEFINED BENEFIT PENSION PLAN (PERS) - Continued Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2 W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board. The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows: Table 8-1 Prior to On or after Hire Date January 1, 2013 January 1, 2013 Benefit Formula 2.7% @55 2.0% @62 Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life Retirement Age 50 - 55 52 - 67 Monthly Benefits, as a % of Eligible Compensation 2.0% to 2.7%1.0% to 2.5% Required Employee Contribution Rates 8.0%8.0% Required Employer Contribution Rates 15.46%7.75% Miscellaneous Contributions Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The District is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 57 8) DEFINED BENEFIT PENSION PLAN (PERS) - Continued For the year ended June 30, 2024, the contributions recognized as part of pension expense for the Plans were as follows: Table 8-2 Miscellaneous Contributions - Employer $ 2,047,342 B) Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2024, the District reported net pension liabilities for its proportionate shares of the net pension liability of the Plans as follows: Table 8-3 Proportionate Share of Net Pension Liability Miscellaneous $ 14,902,033 The District’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows: Table 8-4 Proportion - June 30, 2023 0.29610% Proportion - June 30, 2024 0.29802% Change - Increase (Decrease)0.00192% Miscellaneous Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 58 8) DEFINED BENEFIT PENSION PLAN (PERS) - Continued The amortization period differs depending on the source of the gain or loss: Net difference between projected and actual earnings on pension plan investments 5-year straight-line amortization All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost- Sharing Multiple-Employer Plan (PERF C). The EARSL for PERF C for the measurement period ending June 30, 2023 is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members' probability of decrementing due to an event other than receiving a cash refund. For the year ended June 30, 2024, the District recognized pension credit of $109,943. At June 30, 2024, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Table 8-5 Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $ 761,276 118,092$ Changes in Assumptions 899,703 - Net differences between projected and actual earnings on plan investments 2,412,773 - Change in employer's proportion 63,510 331,226 Difference between the employer's contributions and the employer's proportionate share of contributions 133,755 93,793 Pension contributions subsequent to measurement date 2,047,342 - Total $ 6,318,359 $ 543,111 EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 59 8) DEFINED BENEFIT PENSION PLAN (PERS) - Continued Contributions subsequent to the measurement date of $2,047,342 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Table 8-6 Year Ended June 30, Amount 2025 $ 1,056,536 2026 733,142 2027 1,868,995 2028 69,232 $ 3,727,905 Actuarial Methods and Assumptions Used to Determine Total Pension Liability The collective total pension liability for the June 30, 2023 measurement period was determined by an actuarial valuation as of June 30, 2022, with updated procedures used to roll forward the total pension liability to June 30, 2023. The collective total pension liability was based on the following assumptions: Table 8-7 Miscellaneous Valuation Date June 30, 2022 Measurement Date June 30, 2023 Entry Age Normal in accordance with the requirements of GASB Fair Value of Assets 6.90% 2.30% Varies by Entry Age and Service Derived using CalPERS' membership data for all Funds The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter (1)The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website. Mortality Rate Table (1) Post Retirement Benefit Increase Actuarial Cost Method Asset Valuation Method Actuarial Assumptions: Discount Rate Inflation Salary Increases EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 60 8) DEFINED BENEFIT PENSION PLAN (PERS) - Continued Change of Assumptions There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014. Discount Rate The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Subsequent Events There were no subsequent events that would materially affect the results presented in this disclosure. Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long- term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 61 8) DEFINED BENEFIT PENSION PLAN (PERS) - Continued The table below reflects the long-term expected real rate of return by asset class. Table 8-8 Asset Class Assumed Asset Allocation Real Return (1)(2) Global Equity - cap weighted 30.0% 4.54% Global Equity - non-cap-weighted 12.0% 3.84% Private Equity 13.0% 7.28% Treasury 5.0% 0.27% Mortgage-backed securities 5.0% 0.50% Investment grade corporates 10.0% 1.56% High Yield 5.0% 2.27% Emerging market debt 5.0% 2.48% Private debt 5.0% 3.57% Real Assets 15.0% 3.21% Leverage -5.0% -0.59% Total 100.0% (1) An expected inflation of 2.30% used for this period (2) Figures are based on the 2021 Asset Liability Management Study C) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents East Valley Water District’s proportionate share of the net pension liability for the Plan, calculated using the current discount rate, as well as what the District’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one-percentage point lower or one-percentage point higher than the current rate: Table 8-9 Miscellaneous 1% Decrease 5.90% Net Pension Liability $ 22,897,538 Current Discount Rate 6.90% Net Pension Liability $ 14,902,033 1% Increase 7.90% Net Pension Liability $ 8,321,046 EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 62 8) DEFINED BENEFIT PENSION PLAN (PERS) - Continued D) Pension Plan Fiduciary Net Position Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. E) Payable to the Pension Plan At June 30, 2024, the District reported a payable of $0 for the outstanding number of contributions to the pension plan required for the year ended June 30, 2024. 9) COMMITMENTS AND CONTINGENCIES Grant Awards Grant funds received by the District are subject to audit by the grantor agencies. Such audit could lead to requests for reimbursements to the grantor agencies for expenditures disallowed under terms of the grant. Management of the District believes that such disallowances, if any, would not be significant. 10) RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omission; injuries to employees; and natural disasters. The District participates in a joint powers agreement (JPA) with the Special District Risk Management Authority (Authority). The Authority is a risk-pooling self-insurance authority created under the provisions of California Government Code Section 6500 et. sec. The Authority is governed by a Board consisting of 7 directors that are either a manager or Board member of a current member agency that were elected by members of SDRMA. The Board controls the operations of the Authority including selection of management and approval of operation budgets. The relationship between the District and the Authority is such that the Authority is not a component unit of the District for financial reporting purposes. Settled claims have been immaterial and claims liabilities have not been reported in these financial statements as of June 30, 2024, or in the previous two fiscal years. The purpose of the Authority is to arrange and administer programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 63 10) RISK MANAGEMENT - Continued At June 30, 2024, the District's participation in the self-insurance programs of the Authority was as follows: Table 10-1 Description Deductible Personal Injury and Property Damage Liability Coverage - General 10,000,000$ Per occurrence / aggregate where applicable $500 (property damage only) Personal Injury and Property Damage Liability Coverage - Auto 10,000,000$ Per accident None Public Officials and Employees Errors and Omissions Liability 10,000,000$ Per wrongful act / annual member aggregate None Employment Practices Liability 10,000,000$ Per wrongful employment practice / aggregate limits per member included with Public Officials and Employee Errors and Omissions Coverage None up to $10,000, 50% co-insurance from $10,000 to $50,000, none for amounts greater than $50,000 Employee Benefits Liability 10,000,000$ Per wrongful act / annual member aggregate None Employee Dishonesty Coverage 1,000,000$ Per loss None Public Officials Personal Liability 500,000$ Per occurrence / annual aggregate per Board Member $ 500 Automobile Physical Damage ACV Limits Replacement cost (stated value adjusted for depreciation on selected vehicles) $250/$500 or $500/$1,000 comprehensive / collision (as elected per vehicle) Uninsured Motorist Bodily Injury Coverage 750,000$ Per accident None Property Coverage 1,000,000,000$ Replacement cost for scheduled property if replaced (if not replaced within two years, actual cash value basis) $ 1,000 Boiler and Machinery 100,000,000$ Replacement cost $ 1,000 Limits EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 64 11) POST-EMPLOYMENT HEALTHCARE BENEFITS The District provides post-employment healthcare benefits for retired employees and eligible surviving spouses in accordance with the plan as established by the District. As of June 30, 2024, the District’s total liability for post-employment healthcare benefits and details of the plan are explained below: Table 11-1 OPEB Plan Net OPEB Liability Deferred Outflows of Resources Deferred Inflows of Resources OPEB Expense Retiree Benefits Plan 2,067,180$ 2,004,127$ 550,043$ 373,315$ Plan Description and Eligibility The District contributes to the retiree health coverage of eligible retirees and eligible surviving spouses. As of June 7, 2011, the District is part of the Public Agency portion of the California Employers’ Retiree Benefit Trust Fund (CERBT), an agent multiple-employer plan administered by California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as well as other requirements is established by State statute within the Public Employees’ Retirement Law. The District selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through District resolution. CalPERS issues an Annual Comprehensive Financial Report (Report). The Report is issued in aggregate and includes the sum of all CalPERS plans. Copies of the CalPERS Report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814. Membership in the health benefit plan consisted of the following as of June 30, 2024, the date of the latest actuarial valuation: Table 11-2 Participant Type 27 0 Active employees 75 102 Number of Participants Inactive participants currently receiving benefits Inactive participants entitled to but not yet receiving benefit Total Funding Policy The contribution requirements of plan members and the District are established and may be amended by the Board of Directors. At retirement, the District provides the minimum employer contribution under the CalPERS Health Program for eligible retirees and surviving spouses in receipt of a pension benefit from CalPERS. An employee is eligible for this employer contribution provided they are vested in their CalPERS pension benefit and commence payment of their pension benefit within 120 days of retirement with the District. Vesting requires at least five years of service. The surviving spouse of an eligible retiree who elected spouse coverage under CalPERS is eligible for the employer contribution upon death of the retiree. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 65 11) POST-EMPLOYMENT HEALTHCARE BENEFITS - Continued Employees retiring with at least 10 years of District service will receive an additional District contribution through attainment of Medicare eligibility age. The additional contribution is based on the negotiated dollar amount at retirement (currently $850 per month). The surviving spouse of an eligible retiree is eligible for the District's contribution upon the death of the retiree through the spouse's attainment of Medicare eligibility age. The District’s funding policy is to contribute the Annual Determined Contribution (ADC) to their account within the CERBT. For fiscal year ended June 30, 2023, the District paid $558,324 to the plan including the implicit rate subsidy. The District contributed $332,001 including the implicit rate subsidy for retiree health benefits to the Trust during the fiscal year ended June 30, 2024. Net OPEB Liability The table herein shows the components of the net OPEB liability of the District: Table 11-3 Balance June 30, 2024 Total OPEB Liability $ 4,036,052 Plan Fiduciary Net Position (1,968,872) District's Net OPEB Liability (Asset) $ 2,067,180 Investments As described above, at June 30, 2024, all Plan investments are held in the CERBT through CalPERS. Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2024, the District reported deferred outlflows of resources and deferred inflows of resources related to pensions from the sources as follows: Table 11-4 Deferred Outflows and Inflows of Resources Deferred Outflows of Resources Deferred Inflows of Resources Contributions subsequent to measurement date 662,002$ -$ Differences between expected and actuarial experience in 916,961 138,584 Changes of assumptions 272,117 411,459 Differences between projected and actual earnings on OPEB plan investments 153,047 - Total 2,004,127$ 550,043$ The deferred outflow of resources results from a change of assumptions and is amortized over the expected average remaining service life (EARSL) of the plan participants. Contributions submitted subsequent to the measurement date will be recognized in the following fiscal year. The EARSL for the OPEB plan for EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 66 11) POST-EMPLOYMENT HEALTHCARE BENEFITS - Continued June 30, 2024 is five years. The year of amortization is recognized in OPEB expense for the year the gain or loss occurs. The remaining amount is deferred and will be amortized over the remaining periods not to exceed four years. The deferred inflows of resources related to OPEB resulting from the net differences between projected and actual earnings on planned investments is amortized over a five-year period on a straight-line basis. One-fifth is recognized in pension expense during the measurement period and the remaining amount is deferred and will be amortized over the remaining four-year period. Deferred inflows and outflows will be amortized as follow: Table 11-5 Year Ending June 30, Amount 2025 $ 125,691 2026 121,837 2027 148,326 2028 91,453 2029 83,564 Thereafter 221,211 $ 792,082 Actuarial Methods and Assumptions The District’s net OPEB liability was measured as of June 30, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2023. Liabilities in this report were calculated as of the valuation date. The total OPEB liability was determined by an actuarial valuation as of June 30, 2023, using the actuarial assumptions shown herein, applied to all periods included in the measurement, unless otherwise specified. Table 11-6 Actuarial Methods and Assumptions Valuation Date June 30, 2023 Measurement Date June 30, 2023 Salary Increases 2.80% Investment Rate of Return 5.50% Health Care Trend Rate 8% HMO / 8% PPO Mortality rates were based upon the rates under the CalPERS pensions plan updated to reflect the most recent experience study. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 67 11) POST-EMPLOYMENT HEALTHCARE BENEFITS - Continued The long-term expected rate of return on Plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset allocation at June 30, 2023 are shown herein: Table 11-7 Asset Class Global Equity 34% N/A Fixed Income 41% N/A Treasury Inflation - Protected Securities 5% N/A Commodities 3% N/A Real Estate Investment Trusts 17% N/A Total 100% 5.50% Target Allocation L/T Expected Gross ROR The discount rate used to measure the total OPEB liability was 5.5 percent. The discount rate assumes the District continues to fully fund its retiree health benefits through the CERBT under its investment allocation strategy 2. The rate reflects the CERBT published median interest rate for strategy 2 with an additional margin for adverse deviation. Changes in the Net OPEB Liability Table 11-8 Total OPEB Liability (a) Plan Fiduciary Net Position (b) Net OPEB Liability (Asset) (a) Balances at June 30, 2023 $ 3,567,214 $ 1,580,854 $ 1,986,360 Changes for the year: Service Cost 145,701 - 145,701 Interest 198,070 - 198,070 Differences between expected and actual experience 644,957 - 644,957 Employer Contributions - 558,324 (558,324) Net Investment Income - 56,506 (56,506) Change of assumptions (293,567) - (293,567) Benefit Payments (226,323) (226,323) - Administrative Expenses - (489) 489 Other Expenses - - - Net Changes 468,838 388,018 80,820 Balances at June 30, 2024 $ 4,036,052 $ 1,968,872 $ 2,067,180 Increase (Decrease) EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 68 11) POST-EMPLOYMENT HEALTHCARE BENEFITS - Continued The following presents the District’s net OPEB liability calculated using the discount rate of 5.5 percent, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (4.5 percent) or 1-percentage-point higher (6.5 percent) than the current rate: Table 11-9 Discount Rate Net OPEB Liability (Asset) 2,457,412$ 2,067,180$ 1,727,579$ 1% Decrease (4.50%) Current Discount Rate (5.50%) 1% Increase (6.50%) The following presents the District’s net OPEB liability calculated using the current healthcare cost trend rate of 8.0 percent, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (7.0 percent) or 1-percentage-point higher (9.0 percent) than the current rate: Table 11-10 Healthcare Trend Rate Net OPEB Liability (Asset) 1% Decrease (7% HMO/7% PPO Decreasing to 3.50% HMO/3.50% PPO)1,642,082$ Current Healthcare Cost Trend Rates (8% HMO/8% PPO Decreasing to 4.50% HMO/4.50% PPO)2,067,180$ 1% Increase (9% HMO/9% PPO Decreasing to 5.50% HMO/5.50% PPO)2,578,002$ OPEB Expense For the year ended June 30, 2024, the District recognized OPEB expense of $373,315 and recorded deferred outflows of resources of $2,004,127 for contributions made during fiscal year 2024 after the measurement date. The deferred outflows will be recognized in OPEB expense for the period ending June 30, 2025. The District recorded $550,043 of deferred inflows of resources resulting from the differences between projected and actual earnings on OPEB plan investments for the period ending June 30, 2023. The deferred inflows of resources will be amortized and recognized in OPEB expense over three remaining periods ending June 30, 2027. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 69 12) CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS The District has five significant active construction project commitments as of June 30, 2024. The following contracts are related to infrastructure upgrades and the recycled water facility. Table 12-1 Contractual Commitments Spent to Date Remaining Commitment Reservoir Seismic Retrofit Project Ph. 1 24,821$ 487,550$ Plant 129 Well Development 36,816$ 238,184$ SNRC Laboratory Services 114,067$ 185,933$ Water Main Seismic Retrofit 475,254$ 708,746$ Design-Build Services of additional water storage in the District's Canal Pressure Zone 316,029$ 423,199$ 13)DEBT WITHOUT DISTRICT COMMITMENT The District authorized the formation of CFD 2021-1 Mediterra Project for purpose of the issuance of bonds under improvement acts of the State of California to finance eligible public facilities to serve residential, and/or mixed- use developments. Bonds issued by the CFD’s are secured by annual special tax levies or liens placed on properties within each CFD. The District are not liable for repayment and the District, acting as an agent on behalf of the CFD, is only responsible for levying and collecting the special tax assessments, forwarding the collections to the bond trustee on behalf of bondholders, and initiating foreclosure proceedings on faulted special tax payments when necessary. The bonds issued by the CFD are limited obligations and are payable solely from special tax assessments, specific bond reserves, and the proceeds from property foreclosures. Since these debts do not constitute an obligation of the District and the District is not obligated to make payments on the bonds, the CFD Bonds (whose terms are disclosed in Note 5) are not reported as long-term liabilities in the accompanying District financial statements. The activities related to the District Bond reserves, special assessment tax collection, remittance to the bond trustee, repayment of District Bonds and use of new bond proceeds for developer capital projects for infrastructure, are reported as a custodial fund As of June 30, 2024, debt without District commitment is as follows: Balance June 30, 2024 2023 Special Tax Bonds, IA No. 1 - 30 years 5,720,000$ EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2024 70 14)DEBT WITHOUT DISTRICT COMMITMENT During fiscal year 2023-24, the District recorded a settlement obligation of $7 million as part of an agreement with the City of San Bernardino. This settlement, a critical component in releasing the District from a 1957 wastewater treatment Joint Powers Authority (JPA), was necessary to facilitate the Local Agency Formation Commission’s (LAFCO) granting of wastewater treatment authority to the District. This release enabled the District to move forward with its water reclamation plant project, the Sterling Natural Resource Center (SNRC). The settlement obligation is payable in annual installments of $700,000 per year for 10 years, beginning in fiscal year 2023-24. The entire settlement obligation has been accrued and expensed as a special item in fiscal year 2023-24. The Water and Wastewater funds, which were the funds in existence when the obligation was incurred, are being charged for the settlement payments. The settlement expense is reflected as a one-time charge of $7 million in the accompanying financial statements. 71 72 East Valley Water District Schedule of District’s Proportionate Share of the Net Pension Liability Year Ended June 30, 2024 Last Ten Years The accompanying notes to required supplementary information are an integral part of this schedule. 73 Schedule of District’s Proportionate Share of the Net Pension Liability The schedule presents information on the District’s proportionate share of the net pension liability, the plans’ fiduciary net position and, when applicable, the proportionate share of the net pension liability associated with the District. 2024 2023 2022 2021 2020 Proportion of the Net Pension Liability 0.119452% 0.119950% 0.123102% 0.113169% 0.115205% Proportionate Share of the Net Pension Liability $ 14,902,033 $ 13,855,136 $ 6,657,689 $ 12,313,294 $ 11,805,140 Covered Payroll $ 7,393,654 $ 6,565,118 $ 6,197,060 $ 5,888,338 $ 5,658,626 Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 201.55% 211.04% 107.43% 209.11% 208.62% Plan's Fiduciary Net Position $ 44,216,314 $ 41,301,132 $ 44,006,462 $ 36,172,219 $ 34,016,773 Plan's Fiduciary Net Position as a Percentage of the Total Pension Liability 74.79% 74.88% 86.86% 77.71% 77.73% 2019 2018 2017 2016 2015 Proportion of the Net Pension Liability 0.28782% 0.11699% 0.11585% 0.11551% 0.10632% Proportionate Share of the Net Pension Liability $ 10,846,955 $ 11,601,798 $ 10,024,712 $ 7,928,173 $ 6,615,935 Covered Payroll $ 5,447,702 $ 4,489,575 $ 5,097,156 $ 4,715,712 $ 4,436,236 Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 199.11% 258.42% 196.67% 168.12% 149.13% Plan's Fiduciary Net Position $ 33,563,265 $ 27,706,747 $ 27,529,345 $ 28,045,198 $ 29,336,566 Plan's Fiduciary Net Position as a Percentage of the Total Pension Liability 77.69% 71.37% 74.06% 78.40% 79.82% East Valley Water District Schedule of District’s Contributions Year Ended June 30, 2024 Last Ten Years The accompanying notes to required supplementary information are an integral part of this schedule. 74 Schedule of District’s Contributions The schedule presents information on the District’s required contribution, the amounts actually contributed, and any excess or deficiency related to the required contribution. 2024 2023 2022 2021 2020 Contractually Required Contribution (Actuarially Determined)2,047,342$ 1,976,052$ 1,938,185$ 1,900,734$ 1,798,495$ Contributions in Relation to the Actuarially Determined Contributions 2,047,342$ 1,976,052$ 1,938,185$ 1,900,734$ 1,798,495$ Contribution Deficiency (Excess)-$ -$ -$ -$ -$ Covered Payroll $ 7,750,618 $ 7,393,654 $ 6,565,118 $ 6,197,060 $ 5,888,338 Contributions as a Percentage of Covered Payroll 26.42% 26.73% 29.52% 30.67% 30.54% 2019 2018 2017 2016 2015 Contractually Required Contribution (Actuarially Determined)1,228,277$ 1,579,268$ 1,035,102$ 895,822$ 742,546$ Contributions in Relation to the Actuarially Determined Contributions 1,228,277$ 1,579,268$ 1,035,102$ 895,822$ 742,546$ Contribution Deficiency (Excess)-$ -$ -$ -$ -$ Covered Payroll $ 5,658,626 $ 5,447,702 $ 4,489,575 $ 5,097,156 $ 4,715,712 Contributions as a Percentage of Covered Payroll 21.71% 28.99% 23.06% 17.57% 15.75% East Valley Water District Schedule of Changes in the Net OPEB Liability Year Ended June 30, 2024 Last Ten Years* The accompanying notes to required supplementary information are an integral part of this schedule. 75 Schedule of Changes in the Net OPEB Liability Accounting standards require presentation of 10 years of information. However, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule as future data becomes available. Total OPEB Liability 2024 2023 Service Cost 145,701$ 118,145$ Interest 198,070 213,973 Differences bewteen exptected and actual experience 644,957 (173,230) Changes of assumptions (293,567) 340,147 Benefit Payments, including refunds of member contributions (226,323) (207,859) Net Change in Total OPEB Liability 468,838 291,176 Total OPEB Liability - Beginning 3,567,214 3,276,038 Total OPEB Liability - Ending (a)4,036,052$ 3,567,214$ Plan Fiduciary Net Position 2024 2023 Contributions - Employer 558,324$ 556,222$ Net Investment Income 56,506 (181,313) Benefit Payments (226,323) (207,859) Administrative Expense (489) (359) Other Expense - - Net Change in Plan Fiduciary Net Position 388,018$ 166,691$ Plan Fiduciary Net Position - Beginning 1,580,854 1,414,163 Plan Fiduciary Net Position - Ending (b)1,968,872$ 1,580,854$ Net OPEB Liability (Asset) - Ending (a) - (b)2,067,180$ 1,986,360$ Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 48.78% 44.32% Covered Payroll 6,007,798$ 5,847,005$ Net OPEB Liability (Asset) as a Percentage of Covered-Employee Payroll 34.41% 33.97% (Continued) Note: Fiscal year 2018 was the first year of implementation, therefore only seven years are shown. East Valley Water District Schedule of Changes in the Net OPEB Liability Year Ended June 30, 2024 - Continued Last Ten Years The accompanying notes to required supplementary information are an integral part of this schedule. 76 Schedule of Changes in the Net OPEB Liability Accounting standards require presentation of 10 years of information. However, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule as future data becomes available. Total OPEB Liability 2022 2021 2020 2019 2018 Service Cost 122,441$ 122,428$ 106,297$ 103,452$ 97,138$ Interest 199,913 189,204 174,233 166,826 160,043 Differences bewteen exptected and actual experience 278,335 75,893 192,265 - - Changes of assumptions (163,361) - (65,796) - - Benefit Payments, including refunds of member contributions (225,321) (220,316) (168,787) (149,550) (168,724) Net Change in Total OPEB Liability 212,007 167,209 238,212 120,728 88,457 Total OPEB Liability - Beginning 3,064,031 2,896,822 2,658,610 2,537,882 2,449,425 Total OPEB Liability - Ending (a)3,276,038$ 3,064,031$ 2,896,822$ 2,658,610$ 2,537,882$ Plan Fiduciary Net Position 2022 2021 2020 2019 2018 Contributions - Employer 412,106$ 405,008$ 278,539$ 149,548$ 218,724$ Net Investment Income 204,887 38,644 48,769 37,365 36,877 Benefit Payments (225,321) (220,316) (168,787) (149,548) (168,724) Administrative Expense - - (330) - (261) Other Expense (563) (427) (240) (683) - Net Change in Plan Fiduciary Net Position 391,109$ 222,909$ 157,951$ 36,682$ 86,616$ Plan Fiduciary Net Position - Beginning 1,023,054 800,145 642,194 605,512 518,896 Plan Fiduciary Net Position - Ending (b)1,414,163$ 1,023,054$ 800,145$ 642,194$ 605,512$ Net OPEB Liability (Asset) - Ending (a) - (b)1,861,875$ 2,040,977$ 2,096,677$ 2,016,416$ 1,932,370$ Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 43.17% 33.39% 27.62% 24.16% 23.86% Covered Payroll 5,902,604$ 5,744,627$ 5,495,000$ 5,495,000$ 5,220,250$ Net OPEB Liability (Asset) as a Percentage of Covered-Employee Payroll 31.54% 35.53% 38.16% 36.70% 37.02% Note: Fiscal year 2018 was the first year of implementation, therefore only seven years are shown. East Valley Water District Schedule of OPEB Healthcare Contributions Year Ended June 30, 2024 Last Ten Years* The accompanying notes to required supplementary information are an integral part of this schedule. 77 Schedule of OPEB Healthcare Contributions Accounting standards require presentation of 10 years of information. However, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule as future data becomes available. OPEB Contributions 2024 2023 Actuarially Determined Contribution (ADC)662,002$ 332,001$ Contributions in Relation to the ADC (558,324) (556,222) Contribution Deficiency (Excess) 103,678$ (224,221)$ District's Covered Payroll 6,536,459$ 6,007,798$ Contributions as a Percentage of Covered-Employee Payroll 10.13% 5.53% OPEB Contributions 2022 2021 2020 2019 2018 Actuarially Determined Contribution (ADC)348,363$ 350,024$ 362,533$ 285,551$ 144,415$ Contributions in Relation to the ADC (412,106) (405,008) (278,539) (149,548) (218,724) Contribution Deficiency (Excess) (63,743)$ (54,984)$ 83,994$ 136,003$ (74,309)$ District's Covered Payroll 5,847,005$ 5,902,604$ 5,744,627$ 5,495,000$ 5,495,000$ Contributions as a Percentage of Covered-Employee Payroll 5.96% 5.93% 6.31% 5.20% 2.63% Note: Fiscal year 2018 was the first year of implementation, therefore only six years are shown. East Valley Water District Notes to the Required Supplementary Information Purpose of Schedules Year Ended June 30, 2024 78 Schedule of District’s Proportionate Share of the Net Pension Liability The schedule presents information on the District’s proportionate share of the net pension liability, the plans’ fiduciary net position and, when applicable, the State’s proportionate share of the net pension liability associated with the District. In the future, as data becomes available, 10 years of information will be presented. Schedule of District’s Contributions The schedule presents information on the District’s required contribution, the amounts actually contributed, and any excess or deficiency related to the required contribution. In the future, as data becomes available, 10 years of information will be presented. Schedule of Changes in Net OPEB Liability The schedule is intended to show the funded status of the District’s actuarially determined liability for postemployment benefits other than pensions. In the future, as data becomes available, 10 years of information will be presented. Schedule of OPEB Healthcare Contributions The schedule presents information on the District’s required contribution, the amounts actually contributed, and any excess or deficiency related to the required contribution. In the future, as data becomes available, 10 years of information will be presented. Pertinent valuation dates and methods and assumptions used to determine the OPEB liability and required contributions are as follows: Measurement Date June 30, 2023 Valuation Date June 30, 2023 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll Remaining Amortization Period 14 years Assets Valuation Method 5 Year Salary Increases 2.8% Annually Plus Merit Increases Based on 2021 Experience Study Investement Rate of Return 5.50% 79 80 81 East Valley Water District History and Organization Year Ended June 30, 2024 82 Formation of the District The Board of Supervisors of San Bernardino County approved a petition in writing for the formation of the East Valley Water District (formerly East San Bernardino County Water District) under Division 12 of the Water Code of the State of California and ordered an election held January 12, 1954. The formation of the District was voted for by the electors. The Board of Supervisors of San Bernardino County, by action on January 18, 1954, approved the formation of the District. Incorporation of the "East Valley Water District" was approved by the State of California on February 1, 1954. East Valley Water District Financing Authority The East Valley Water District Financing Authority (Authority) is a public body organized and existing under a Joint Exercise of Powers Agreement, and under the Constitution and laws of the State of California, between East Valley Water District and the California Municipal Finance Authority. The Authority was formed to assist in the financing and refinancing of capital improvement projects of the District for the use, benefit, and enjoyment of the public. Nature of Business The District has been engaged in the furnishing of water service and wastewater transmission services to its customers since inception. Location The District office is located at 31111 Greenspot Road, Highland, California. The office is situated within the District's boundaries which encompass an area of approximately 30.1 square miles within the County of San Bernardino, California. Directors James Morales, Jr. Chairman of the Board Ronald L. Coats Vice-Chairman of the Board David E. Smith Governing Board Member Ronald L. Coats Governing Board Member Chris Carrillo Governing Board Member East Valley Water District James Morales, Jr.President Ronald L. Coats Vice-President Michael Moore Secretary/Executive Director Brian W. Tompkins Director of Finance East Valley Water District Financing Authority Management Michael Moore General Manager/CEO Brian W. Tompkins Chief Financial Officer/Treasurer East Valley Water District District General Counsel Jean Cihigoyenetche JC Law Firm East Valley Water District East Valley Water District Combining Schedule of Net Position June 30, 2024 83 Water Wastewater Water Reclamation Eliminations Total ASSETS Current Assets: Cash and Cash Equivalents 1,784,281$ 783,879$ 5,628,995$ -$ 8,197,155$ Investments 13,162,655 2,141,514 - - 15,304,169 Accounts Receivable, Net 5,089,642 351,017 667,030 - 6,107,689 Interest Receivable 106,595 212,102 22,354 - 341,051 Other Receivables 1,959,106 - - - 1,959,106 Due From Other Fund 12,526,922 2,257,875 - (14,784,797) - Due from Other Governments - - 7,553,848 - 7,553,848 Inventory 1,055,170 6,721 - - 1,061,891 Prepaid Expenses 733,428 42,012 - - 775,440 Total Current Assets 36,417,799 5,795,120 13,872,227 (14,784,797) 41,300,349 Non-Current Assets: Restricted Cash and Cash Equivalents 7,817,138 3,760,224 3,630,159 - 15,207,521 Restricted Due from Other Governments - - 7,800,000 - 7,800,000 Assessments Receivable 246,083 - - - 246,083 Capital Assets not being Depreciated 4,725,633 2,848,506 - - 7,574,139 Capital Assets, Net (Note 4) 111,446,787 27,884,535 175,053,347 - 314,384,669 Total Non-Current Assets 124,235,641 34,493,265 186,483,506 - 345,212,412 Total Assets 160,653,440 40,288,385 200,355,733 (14,784,797) 386,512,761 DEFERRED OUTFLOWS OF RESOURCES Deferred Charge on Refunding 553,094 259,347 - - 812,441 Deferred Outflows - Pensions 4,422,851 1,895,508 - - 6,318,359 Deferred Outflows - OPEB 1,402,889 601,238 - - 2,004,127 Total Deferred Outflows 6,378,834 2,756,093 - - 9,134,927 Total Assets and Deferred Outflows of Resources 167,032,274$ 43,044,478$ 200,355,733$ (14,784,797)$ 395,647,688$ (Continued) East Valley Water District Combining Schedule of Net Position – Continued June 30, 2024 84 Water Wastewater Water Reclamation Eliminations Total LIABILITIES Current Liabilities: Accounts Payable and Accrued Expenses 10,144,621$ 107,606$ 196,919$ -$ 10,449,146$ Accrued Payroll and Benefits 669,610 169,937 105,038 - 944,585 Customer Service Deposits 1,439,016 - - - 1,439,016 Construction Advances and Retentions 136,817 3,500 - - 140,317 Accrued Interest Payable 203,649 24,711 - - 228,360 Current Portion of Compensated Absences 305,527 91,983 35,192 - 432,702 Current Portion of Long-Term Debt 1,546,278 175,000 4,462,664 - 6,183,942 Due To Other Fund - - 14,784,797 (14,784,797) - Due To Other Governments 76,452 - - - 76,452 Total Current Liabilities 14,521,970 572,737 19,584,610 (14,784,797) 19,894,520 Non-Current Liabilities: Compensated Absences, Less Current Portion 720,652 228,680 159,192 - 1,108,524 Net Pension Liability 10,431,423 4,470,610 - - 14,902,033 Net OPEB Liability 1,447,026 620,154 - - 2,067,180 Long-Term Debt, Less Current Portion 28,931,619 4,030,000 171,015,643 - 203,977,262 Due To Other Governments 4,410,000 1,890,000 - - 6,300,000 Total Non-Current Liabilities 45,940,720 11,239,444 171,174,835 - 228,354,999 Total Liabilities 60,462,690 11,812,181 190,759,445 (14,784,797) 248,249,519 DEFERRED INFLOWS OF RESOURCES Deferred Inflows - Refunding 1,076,449 - - - 1,076,449 Deferred Inflows - Pensions 380,178 162,933 - - 543,111 Deferred Inflows - OPEB 385,030 165,013 - - 550,043 Total Deferred Inflows 1,841,657 327,946 - - 2,169,603 Total Liabilities and Deferred Inflows of Resources 62,304,347 12,140,127 190,759,445 (14,784,797) 250,419,122 NET POSITION Net Investment in Capital Assets 85,711,174 26,362,430 - - 112,073,604 Restricted for: Future Capital Expansion Projects 5,927,682 3,756,724 3,630,159 - 13,314,565 Unrestricted 13,089,071 785,197 5,966,129 - 19,840,397 Total Net Position 104,727,927$ 30,904,351$ 9,596,288$ -$ 145,228,566$ East Valley Water District Combining Schedule of Revenues, Expenses, and Changes in Net Position Year Ended June 30, 2024 85 Water Wastewater Water Reclamation Eliminations Total OPERATING REVENUE Water Sales 17,461,064$ -$ 439,451$ -$ 17,900,515$ Wastewater Treatment Charges - - 10,746,724 - 10,746,724 System Charges 10,149,281 6,073,154 - - 16,222,435 Other Revenue 998,210 62,331 - - 1,060,541 Total Operating Revenue 28,608,555 6,135,485 11,186,175 - 45,930,215 OPERATING EXPENSES Source of Supply: Salary & Benefits 545,958 - - - 545,958 Contract Services 247,051 - - - 247,051 Utilities 2,007,023 - - - 2,007,023 Insurance 5,370 - - - 5,370 Materials & Supplies 46,081 - - - 46,081 Purchased Water 786,922 - - - 786,922 Water Assessments 286,053 - - - 286,053 Chemicals 130,988 - - - 130,988 Professional Development 185 - - 185 Taxes 23,735 - - - 23,735 Total Source of Supply 4,079,366 - - - 4,079,366 Pumping: Salary & Benefits 183,776 - - - 183,776 Contract Services 38,773 - - - 38,773 Utilities 644,245 - - - 644,245 Materials & Supplies 16,937 - - - 16,937 Total Pumping 883,731 - - - 883,731 Treatment: Salary & Benefits 511,638 - 1,441,357 - 1,952,995 Contract Services 567,629 - 7,359,999 - 7,927,628 Utilities 212,419 - 1,328,879 - 1,541,298 Materials & Supplies 82,088 - 83,931 - 166,019 Legal Services - - - - - Chemicals 218,594 - 180,377 - 398,971 Memberships & Dues - - 3,952 - 3,952 Tools - - 7,973 - 7,973 Printing & Publishing - - - - - Professional Development - - 4,788 - 4,788 Total Treatment 1,592,368 - 10,411,256 - 12,003,624 Transmission & Distribution: Salary & Benefits 2,635,539 - - - 2,635,539 Contract Services 591,111 - - - 591,111 Materials & Supplies 719,956 - - - 719,956 Chemicals 13,900 - - - 13,900 Permits - - - - - Tools 51,770 - - - 51,770 Total Transmission & Distribution 4,012,276$ -$ -$ -$ 4,012,276$ (Continued) East Valley Water District Combining Schedule of Revenues, Expenses, and Changes in Net Position - Continued Year Ended June 30, 2024 86 Water Wastewater Water Reclamation Eliminations Total OPERATING EXPENSES - Continued Wastewater Collection: Salary & Benefits -$ 541,055$ -$ -$ 541,055$ Contract Services - 209,913 - - 209,913 Materials & Supplies - 34,721 - - 34,721 Tools - 6,661 - - 6,661 Total Wastewater Collection - 792,350 - - 792,350 Customer Accounts: Salary & Benefits 920,792 284,533 - - 1,205,325 Contract Services 689,123 293,000 - - 982,123 Utilities 4,854 - - - 4,854 Materials & Supplies 1,589 45 - - 1,634 General Office Supplies 10,391 636 - - 11,027 Printing & Publishing 5,891 2,525 - - 8,416 Postage 123,707 53,017 - - 176,724 Professional Development 1,596 658 - - 2,254 Total Customer Accounts 1,757,943 634,414 - - 2,392,357 General & Administrative: Salary & Benefits 3,392,950 2,073,195 - - 5,466,145 Contract Services 2,385,595 883,292 - - 3,268,887 Conservation Rebates 23,133 - - - 23,133 Utilities 502,315 98,772 - - 601,087 Insurance 947,757 233,482 604,450 - 1,785,689 Materials & Supplies 679,801 159,721 - - 839,522 General Office Supplies 13,245 8,590 - - 21,835 Legal Services 103,620 44,319 - - 147,939 Permits 85,037 21,228 - - 106,265 Memberships & Dues 93,383 34,066 - - 127,449 Tools 23,923 4,347 - - 28,270 Printing & Publishing 87,781 40,615 - - 128,396 Professional Development 159,120 50,695 - - 209,815 Rents & Leases 15,770 6,767 - - 22,537 Total General & Administrative 8,513,430 3,659,089 604,450 - 12,776,969 OPERATING EXPENSES BEFORE DEPRECIATION 20,839,114 5,085,853 11,015,706 - 36,940,673 Depreciation 5,647,729 924,253 1,052,684 - 7,624,666 Total Operating Expenses 26,486,843 6,010,106 12,068,390 - 44,565,339 OPERATING INCOME (LOSS)2,121,712$ 125,379$ (882,215)$ -$ 1,364,876$ (Continued) East Valley Water District Combining Schedule of Revenues, Expenses, and Changes in Net Position - Continued Year Ended June 30, 2024 87 Water Wastewater Water Reclamation Eliminations Total NON-OPERATING REVENUES Investment Income 616,071$ 414,212$ 106,219$ -$ 1,136,502$ Unrealized Investment Gain 103,802 26,734 - 130,536 Other Income 39,064 - - - 39,064 Total Non-Operating Revenues 758,937 440,946 106,219 - 1,306,102 NON-OPERATING EXPENSES Interest Expense 677,936 111,747 - - 789,683 Other Non-Operating Expenses - - - - Total Non-Operating Expenses 677,936 111,747 - - 789,683 INCOME BEFORE CONTRIBUTIONS 2,202,713 454,578 (775,996) - 1,881,295 CONTRIBUTIONS: Capacity Charges 1,322,408 612,343 621,637 - 2,556,388 Total Contributions 1,322,408 612,343 621,637 - 2,556,388 SPECIAL ITEM: Settlement Obligation - Wastewater Treatment Authority Disassociation (4,900,000) (2,100,000) - - (7,000,000) CHANGE IN NET POSITION (1,374,879) (1,033,079) (154,359) - (2,562,317) TOTAL NET POSITION, BEGINNING 106,102,806 31,937,430 9,750,647 - 147,790,883 TOTAL NET POSITION, ENDING 104,727,927$ 30,904,351$ 9,596,288$ -$ 145,228,566$ 88 East Valley Water District Combining Schedule of Cash Flows Year Ended June 30, 2024 89 Water Wastewater Water Reclamation Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 28,523,629$ 6,095,940$ 11,067,554$ -$ 45,687,123$ Cash Payments for Employees Services (9,847,820) (2,566,387) (1,398,359) - (13,812,566) Cash Payments to Suppliers (11,304,249) (2,275,819) (9,389,210) - (22,969,278) Misc Income / (Expense) 39,064 - - - 39,064 Net Cash Provided by Operating Activities 7,410,624 1,253,734 279,985 - 8,944,343 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Assessments Received 131,891 - - - 131,891 Developer Fees Received 1,322,408 612,343 621,637 - 2,556,388 Reimbursements Received - - 6,579,416 - 6,579,416 Proceeds/Draws from SRF Loan - - 8,813,935 - 8,813,935 Due (From) To Water Fund (5,429,180) (2,655,077) 5,429,180 - (2,655,077) Due (From) To Reclamation Fund 5,661,647 5,655,612 (5,655,612) - 5,661,647 Principal Paid on Capital Debt (3,067,553) (175,000) - - (3,242,553) Interest Paid on Capital Debt (900,069) (98,274) - - (998,343) Due (From) To Other Agencies (413,548) (210,000) (623,548) Acquisition of Capital Assets (1,858,321) (4,008,968) (9,630,053) - (15,497,342) Net Cash Used for Capital and Related Financing Activities (4,552,725) (879,364) 6,158,503 - 726,414 CASH FLOWS FROM INVESTING ACTIVITIES Interest Received from Investments 507,750 152,098 83,865 - 743,713 Acquisition of Investment Securities (9,903,449) (1,495,150) - - (11,398,599) Proceeds from Sales of Investments 115,000 1,450,000 - - 1,565,000 Net Cash Provided (Used) by Investing Activities (9,280,699) 106,948 83,865 - (9,089,886) Net (Decrease) Increase in Cash and Cash Equivalents (6,422,800) 481,318 6,522,353 - 580,871 Cash and Equivalents: Beginning of Year 16,024,219 4,062,785 2,736,801 - 22,823,805 End of Year 9,601,419$ 4,544,103$ 9,259,154$ -$ 23,404,676$ RECONCILIATION TO STATEMENT OF NET POSITION Cash and Cash Equivalents 1,784,281$ 783,879$ 5,628,995$ -$ 8,197,155$ Restricted Cash and Cash Equivalents 7,817,138 3,760,224 3,630,159 - 15,207,521 Total Cash and Cash Equivalents 9,601,419$ 4,544,103$ 9,259,154$ -$ 23,404,676$ (Continued) East Valley Water District Combining Schedule of Cash Flows - Continued Year Ended June 30, 2024 90 Water Wastewater Water Reclamation Eliminations Total Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities Operating Income (Loss) 2,121,712$ 125,379$ (882,215)$ -$ 1,364,876$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities: Depreciation 5,647,729 924,253 1,052,684 - 7,624,666 Miscellaneous Income/(Expense) 39,064 - - - 39,064 CIP Projects Expensed 160,787 7,396 - - 168,183 Change in Assets and Liabilities: Customer Receivables (8,684) (39,545) (118,621) - (166,850) Inventory (87,071) - - - (87,071) Prepaids (508,708) (9,934) - - (518,642) Deferred Outflow of Resources (870,918) (950,171) - - (1,821,089) Accounts Payable - Supplier 1,791,555 (86,211) 185,139 - 1,890,483 Salaries & Benefits Payable 92,821 (4,662) 31,050 - 119,209 Compensated absences 46,040 55,471 11,948 - 113,459 Net Pension Liability (169,571) 1,216,468 - - 1,046,897 Net OPEB Liability 56,573 24,246 - - 80,819 Deferred Inflows of Resources (824,463) (8,956) - - (833,419) Other Receivables (111,296) - - - (111,296) Customer / Developer Deposits 35,054 - - - 35,054 Total Cash Provided by Operating Activities 7,410,624$ 1,253,734$ 279,985$ -$ 8,944,343$ NON-CASH INVESTING, CAPITAL, AND NON-CAPITAL FINANCING ACTIVITIES: Fair Value Adjustments to Investments 65,149$ 65,387$ -$ -$ 130,536$ -$ -$ 8,616,385$ -$ 8,616,385$ Receivable Offset by Debt 91 92 Annual Comprehensive Financial Report Fiscal Year Ended June 30, 2024 Table of Contents 93 Page No. Statistical Information Section Financial Trends ................................................................................................. 95-100 These schedules contain information to help the reader understand how the District’s financial performance and well-being have changed over time. Changes in Net Position by Component – Last Ten Fiscal Years .................................... 95-96 Operating Revenue by Source – Last Ten Fiscal Years ...................................................... 97 Water Operating Expenses – Last Ten Fiscal Years ........................................................... 98 Wastewater Operating Expenses – Last Ten Fiscal Years................................................... 99 Water Reclamation Operating Expenses – Last Ten Fiscal Years ...................................... 100 Revenue Capacity ............................................................................................. 101-108 These schedules contain information to help the reader assess the District’s most significant sources of revenue, water sales, meter charges, wastewater system charges, wastewater treatment charges, and other charges. Water Sales and Production – Last Ten Fiscal Years ........................................................ 101 Revenue Rates for Water – Last Ten Fiscal Years ..................................................... 103-104 Revenue Rates for Wastewater – Last Ten Fiscal Years ............................................. 105-106 Active Services by Type – Last Ten Fiscal Years .............................................................. 107 Principal Customers – Current Fiscal Year and Nine Years Ago ........................................ 108 Debt Capacity .................................................................................................. 109-110 These schedules present information to help the reader assess the affordability of the District’s current levels of outstanding debt and the District’s ability to issue additional debt in the future. Ratio of Outstanding Debt – Last Ten Fiscal Years .......................................................... 109 Debt Service Coverage – Last Ten Fiscal Years ............................................................... 110 Annual Comprehensive Financial Report Fiscal Year Ended June 30, 2024 Table of Contents 94 Page No. Statistical Information Section - Continued Demographic Information ....................................................................................... 111 These schedules offer demographic indicators to help the reader understand the environment within which the District’s financial activities take place. Demographic and Economic Statistics – Last Ten Calendar / Fiscal Years ......................... 111 Operating Information .................................................................................... 112-113 These schedules contain service and infrastructure data to help the reader understand how the information in the District’s financial report relates to the service provided by the District. Full-Time Equivalent Employees by Department – Last Ten Fiscal Years ........................... 112 Operating and Capacity Indicators for Water and Wastewater – Last Ten Fiscal Years ...... 113 EAST VALLEY WATER DISTRICT Changes in Net Position by Component Last Ten Fiscal Years 95 Year ended June 30, 2015 2016 2017 2018 2019 Change In Net Position Operating Revenue 30,743,445$ 33,024,082$ 37,448,549$ 40,291,125$ 39,309,298$ Operating Expenses 29,146,339 32,655,921 32,299,587 35,980,099 35,898,073 Operating Income (Loss) 1,597,106 368,161 5,148,962 4,311,026 3,411,225 Non-Operating Revenue (Expenses) Investment Income 100,830 146,874 69,237 221,359 571,549 Other Income 800,278 830,806 401,323 258,560 307,247 Interest Expense (1,980,062) (1,843,440) (1,776,684) (1,777,852) (1,684,986) Other Expense - - - - - Gain (Loss) on Disposal of Assets - - - - 705,285 Total Non-Operating Revenue (Expenses) (1,078,954) (865,760) (1,306,124) (1,297,933) (100,905) Special Item Abandoned Projects (2,413,478) - (1,615,241) - - Hazard Mitigation - - - (155,177) - Settlement Obligation - - - - - Capital Contributions 596,940 732,642 2,446,118 523,918 611,673 Change in Net Position (1,298,386) 235,043 4,673,715 3,537,011 3,921,993 Prior Period Adjustment (7,956,231) - - - - Cumulative Effect of Change in Accounting Principles - - - (1,711,803) - Net Position - Beginning 122,069,494 112,814,877 113,049,920 117,723,635 119,393,666 Net Position - Ending 112,814,877$ 113,049,920$ 117,723,635$ 119,548,843$ 123,315,659$ Net Position By Component Net Investment in Capital Assets 98,091,685$ 103,222,160$ 104,659,796$ 103,210,762$ 95,468,735$ Restricted 2,322,238 2,276,695 2,847,924 3,334,940 3,460,835 Unrestricted 12,400,954 7,551,065 10,215,915 12,847,964 24,386,089 112,814,877$ 113,049,920$ 117,723,635$ 119,393,666$ 123,315,659$ (Continued) SOURCE: East Valley Water District - Finance Department EAST VALLEY WATER DISTRICT Changes in Net Position by Component - Continued Last Ten Fiscal Years 96 Year ended June 30, 2020 2021 2022 2023 2024 Change In Net Position Operating Revenue 39,812,912$ 42,236,814$ 43,093,615$ 43,810,012$ 45,930,215$ Operating Expenses 36,249,650 36,496,064 40,578,341 42,515,136 44,565,339 Operating Income (Loss) 3,563,262 5,740,750 2,515,274 1,294,876 1,364,876 Non Operating Revenue (Expenses) Investment Income 524,675 167,499 165,989 352,273 1,136,502 Other Income 121,983 43,744 (269,768) (37,876) 169,600 Interest Expense (1,579,104) (1,387,113) (1,295,223) (869,397) (789,683) Other Expense - - - - - Gain (Loss) on Disposal of Assets - (1,236,600) 1,042,562 30,134 - Total Non-Operating Revenue (Expenses) (932,446) (2,412,470) (356,440) (524,866) 516,419 Special Item Abandoned Projects - - - - - Hazard Mitigation - - - - - Settlement Obligation - - - - (7,000,000) Capital Contributions 9,961,522 877,185 2,826,525 1,922,052 2,556,388 Change in Net Position 12,592,338 4,205,465 4,985,359 2,692,062 (2,562,317) Prior Period Adjustment - - - - - Cumulative Effect of Change in Accounting Principles - - - - - Net Position - Beginning 123,315,659 135,907,997 140,113,462 145,098,821 147,790,883 Net Position - Ending 135,907,997$ 140,113,462$ 145,098,821$ 147,790,883$ 145,228,566$ Net Position By Component Net Investment in Capital Assets 106,708,555$ 114,767,362$ 117,079,071$ 112,909,956$ 112,073,604$ Restricted 6,659,487 6,435,505 9,076,014 10,761,677 13,314,565 Unrestricted 22,539,955 18,910,595 18,943,736 24,119,250 19,840,397 135,907,997$ 140,113,462$ 145,098,821$ 147,790,883$ 145,228,566$ SOURCE: East Valley Water District - Finance Department EAST VALLEY WATER DISTRICT Operating Revenue by Source Last Ten Fiscal Years 97 Wastewater Wastewater Total Year Ended Water Meter System Treatment Other Operating June 30, Sales Charges Charges Charges Charges Revenue 2015 13,505,159$ 4,874,581$ 4,531,355$ 6,907,828$ 924,522$ 30,743,445$ 2016 11,927,523 8,063,077 4,286,594 7,165,655 1,581,233 33,024,082 2017 14,556,339 8,944,652 4,703,439 8,128,030 1,116,089 37,448,549 2018 17,063,891 8,999,756 4,668,923 8,697,671 860,884 40,291,125 2019 15,746,654 9,009,881 4,643,732 8,592,950 1,316,081 39,309,298 2020 16,902,370 9,023,267 4,647,347 8,496,012 743,916 39,812,912 2021 19,305,631 9,217,003 4,705,683 8,456,508 551,989 42,236,814 2022 18,472,876 9,192,297 4,828,526 9,764,357 835,559 43,093,615 2023 17,004,576 9,831,561 5,651,554 10,108,850 1,213,471 43,810,012 2024 17,900,515 10,149,281 6,073,154 10,746,724 1,060,541 45,930,215 SOURCE: East Valley Water District - Finance Department $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 Other Charges Wastewater Treatement Charges Wastewater System Charges Meter Charges Water Sales EAST VALLEY WATER DISTRICT Water Operating Expenses Last Ten Fiscal Years 98 Transmission Customer Accts,Total Year Ended Source of Water & General, & Water Oper June 30, Supply Pumping Treatment Distribution Admin Expenses 2015 3,025,714$ 615,147$ 743,099$ 2,120,374$ 6,785,909$ 13,290,243$ 2016 2,442,061 696,432 799,947 2,327,185 8,782,957 15,048,582 2017 3,401,062 646,940 750,052 2,222,953 7,696,211 14,717,218 2018 2,595,071 683,296 969,460 2,538,910 9,347,724 16,134,461 2019 2,975,348 585,585 840,623 2,819,288 9,393,555 16,614,399 2020 3,263,403 457,846 891,127 3,460,642 9,414,762 17,487,780 2021 3,617,788 596,586 1,008,129 3,253,175 9,208,176 17,683,854 2022 3,515,262 756,843 1,045,730 3,563,328 12,534,090 21,415,253 2023 3,890,634 1,003,038 1,212,646 4,311,606 10,744,909 21,162,833 2024 4,079,366 883,731 1,592,368 4,012,276 10,271,373 20,839,114 SOURCES: East Valley Water District - Customer Service, Finance, and Operations Departments $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 Source of Supply Pumping Water Treatment Transmission & Distribution Customer Accts, General, & Admin EAST VALLEY WATER DISTRICT Wastewater Operating Expenses Last Ten Fiscal Years 99 Customer Accts, Total Year Ended Wastewater General, & Wastewater Oper June 30, Collections Admin Expenses 2015 448,399$ 3,356,250$ 3,804,649$ 2016 407,913 2,752,779 3,160,692 2017 425,944 2,510,920 2,936,864 2018 753,000 3,367,091 4,120,091 2019 700,507 3,309,983 4,010,490 2020 767,448 2,922,949 3,690,397 2021 722,680 3,140,650 3,863,330 2022 587,128 3,113,309 3,700,437 2023 752,489 4,048,730 4,801,219 2024 792,350 4,293,503 5,085,853 SOURCES: East Valley Water District - Customer Service and Finance Departments $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Wastewater Collections Customer Accts, General, & Admin EAST VALLEY WATER DISTRICT Water Reclamation Operating Expenses Last Ten Fiscal Years 100 Customer Accts, Total Year Ended Wastewater General, & Water Recl Oper June 30, Treatment Admin Expenses 2015 6,907,828$ -$ 6,907,828$ 2016 7,302,389 - 7,302,389 2017 8,128,030 - 8,128,030 2018 8,697,671 - 8,697,671 2019 8,592,950 - 8,592,950 2020 8,496,012 - 8,496,012 2021 8,456,508 - 8,456,508 2022 9,084,061 - 9,084,061 2023 9,601,461 685,246 10,286,707 2024 10,411,256 604,450 11,015,706 SOURCES: East Valley Water District - Customer Service and Finance Departments $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 Wastewater Treatment Customer Accts, General, & Admin EAST VALLEY WATER DISTRICT Water Sales and Production Last Ten Fiscal Years 101 Year Ended Water Sales Water Produced June 30, (Acre Feet) (Acre Feet) 2015 17,431 18,494 2016 14,999 16,614 2017 16,223 17,922 2018 18,361 18,997 2019 16,167 17,397 2020 17,037 17,596 2021 18,429 18,784 2022 17,998 18,789 2023 15,341 16,408 2024 15,420 16,273 SOURCES: East Valley Water District - Finance and Operations Departments 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 Water Produced Water Sales 102 EAST VALLEY WATER DISTRICT Revenue Rates for Water Last Ten Fiscal Years 103 Water Consumption Rates Year ended June 30, 2015(1)2016 2017 2018 2019 Tier 1-$1.45 Tier 1-$1.45 Tier 1-$1.63 Tier 1-$1.73 Tier 1-$1.73 Tier 2-$2.07 Tier 2-$2.07 Tier 2-$2.32 Tier 2-$2.46 Tier 2-$2.46 Tier 3-$2.89 Tier 3-$2.89 Tier 3-$3.24 Tier 3-$3.44 Tier 3-$3.44 Water Monthly System Charges Year ended June 30, 2015 2016 2017 2018 2019 20.96$ 20.96$ 23.06$ 23.06$ 23.06$ 26.61 26.61 29.27 29.27 29.27 37.92 37.92 41.71 41.71 41.71 66.19 66.19 72.81 72.81 72.81 100.12 100.12 110.13 110.13 110.13 207.54 207.54 228.30 228.30 228.30 365.85 365.85 402.44 402.44 402.44 744.67 744.67 819.14 819.14 819.14 1,366.62 1,366.62 1,503.28 1,503.28 1,503.28 (Continued) NOTES: HCF = Hundred Cubic Feet = 748 gallons (1)On June 1, 2015 the District adopted Water Budget Based Rates. (2)On January 1, 2020 the District adopted New Water Rates. (3)On January 1, 2022 the District adopted New Water Rates. SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions 2 8 3 4 6 5/8 3/4 1 Meter Size Charge per HCF (inches) 1 1/2 EAST VALLEY WATER DISTRICT Revenue Rates for Water - Continued Last Ten Fiscal Years 104 Water Consumption Rates Year ended June 30, 2020(2)2021 2022(3)2023 2024 Tier 1-$1.83 Tier 1-$1.83 Tier 1-$1.98 Tier 1-$2.04 Tier 1-$2.11 Tier 2-$2.61 Tier 2-$2.61 Tier 2-$2.54 Tier 2-$2.62 Tier 2-$2.70 Tier 3-$3.64 Tier 3-$3.64 Tier 3-$3.93 Tier 3-$4.05 Tier 3-$4.18 Water Monthly System Charges Year ended June 30, 2020 2021 2022(3)2023 2024 23.06$ 23.06$ 24.01$ 24.74$ 25.49$ 29.27 29.27 30.85 31.78 32.74 41.71 41.71 44.52 45.86 47.24 72.81 72.81 78.69 81.06 83.50 110.13 110.13 119.70 123.30 127.00 228.30 228.30 229.05 235.93 243.01 402.44 402.44 352.07 362.64 373.52 819.14 819.14 693.79 714.61 736.05 1,503.28 1,503.28 1,923.98 1,981.70 2,041.16 2,041.16 2,041.16 NOTES: HCF = Hundred Cubic Feet = 748 gallons (1)On June 1, 2015 the District adopted Water Budget Based Rates. (2)On January 1, 2020 the District adopted New Water Rates. (3)On January 1, 2022 the District adopted New Water Rates. SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions 8 3 4 6 2 1 1/2 5/8 3/4 1 10 12 Charge per HCF Meter Size (inches) EAST VALLEY WATER DISTRICT Revenue Rates for Wastewater Last Ten Fiscal Years 105 Wastewater Maintenance Charges Year ended June 30, 2015(1)2016 2017 2018 2019 Single-Family Residential (1 to 3 units) Flat Monthly Charge (per unit) 15.36$ 15.36$ 15.36$ 15.36$ 15.36$ Multi-Family Residential (4 or more units) Flat Monthly Charge (per unit) 15.36$ 15.36$ 15.36 N/A N/A Commercial Non-Residential Flat Monthly Charge3.90 3.90 3.90 3.90 3.90 plus, Charge per HCF 0.55 0.55 0.55 0.55 0.55 Wastewater Treatment Charges Year ended June 30, 2015(1)2016 2017 2018 2019 Residential (Flat Monthly Charge) Flat Monthly Charge Residential (1 unit) 18.50$ 19.18$ 20.85$ 21.55$ 21.55$ Residential (2 units) N/A N/A N/A N/A N/A Residential (3 units) N/A N/A N/A N/A N/A Multi-Family (2 units) 37.00 38.37 41.72 43.10 43.10 Multi-Family (3 units) 55.50 57.55 62.58 64.64 64.64 Multi-Family (4 or more units) N/A N/A N/A N/A N/A Commercial Multi-Family (4+ units) 2.40 1.71 1.90 1.97 1.97 Non-Residential 2.40 3.18 3.42 3.52 3.52 plus, Charge per HCF: Multi-Family (4+ units) 1.25 1.36 1.48 1.53 1.53 Retail 2.10 2.28 2.47 2.55 2.55 Restaurants/Lounges 2.70 2.93 3.18 3.28 3.28 Schools/Churches 1.10 1.19 1.29 1.33 1.33 Governments/Municipal 1.50 1.63 1.77 1.83 1.83 Laundromats 1.50 1.63 1.77 1.83 1.83 Dry Cleaners 2.10 2.28 2.47 2.55 2.55 Convalescent Homes 1.35 1.46 1.58 1.63 1.63 Auto Repair/Svc Stations 1.30 1.41 1.53 1.58 1.58 Car Wash 1.30 1.41 1.53 1.58 1.58 Patton State Hospital N/A N/A N/A N/A N/A Hotels 2.70 2.93 3.18 3.28 3.28 Ofc Bldgs/Motels 1.50 1.63 1.77 1.83 1.83 Supermarkets 2.70 2.93 3.18 3.28 3.28 NOTES:(Continued) HCF = Hundred Cubic Feet = 748 gallons (1)On June 1, 2015 the District adopted Water Budget Based Rates. (2) SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions Starting in May 2022, the District transitioned from rates established by the City of San Bernardino to rates adopted as the result of a wastewater Cost of Service Analysis for the District's Sterling Natural Resource Center Water Reclamation Plant. EAST VALLEY WATER DISTRICT Revenue Rates for Wastewater - Continued Last Ten Fiscal Years 106 Wastewater Maintenance Charges Year ended June 30, 2020 2021 2022(2)2023 2024 Single-Family Residential (1 to 3 units) Flat Monthly Charge (per unit) 15.36$ 15.36$ 14.25$ 15.25$ 16.32$ Multi-Family Residential (4 or more units) Flat Monthly Charge (per unit) N/A N/A 13.46 14.41 15.42 Commercial Non-Residential Flat Monthly Charge3.90 3.90 10.33 11.06 11.84 plus, Charge per HCF 0.55 0.55 - - - Wastewater Treatment Charges Year ended June 30, 2020 2021 2022(2)2023 2024 Residential (Flat Monthly Charge) Flat Monthly Charge Residential (1 unit) 21.55$ 21.55$ 23.37$ 25.01$ 26.77$ Residential (2 units) N/A N/A 23.37 25.01 26.77 Residential (3 units) N/A N/A 23.37 25.01 26.77 Multi-Family (2 units) 43.10 43.10 20.86 22.33 23.90 Multi-Family (3 units) 64.64 64.64 20.86 22.33 23.90 Multi-Family (4 or more units) N/A N/A 20.86 22.33 23.90 Commercial Multi-Family (4+ units) 1.97 1.97 N/A N/A N/A Non-Residential 3.52 3.52 10.83 11.59 12.41 plus, Charge per HCF: Multi-Family (4+ units) 1.53 1.53 N/A N/A N/A Retail 2.55 2.55 1.31 1.41 1.52 Restaurants/Lounges 3.28 3.28 1.31 4.16 4.46 Schools/Churches 1.33 1.33 1.31 1.41 1.52 Governments/Municipal 1.83 1.83 1.31 1.41 1.52 Laundromats 1.83 1.83 1.99 2.14 2.30 Dry Cleaners 2.55 2.55 1.99 2.14 2.30 Convalescent Homes 1.63 1.63 1.99 2.14 2.30 Auto Repair/Svc Stations 1.58 1.58 1.99 2.14 2.30 Car Wash 1.58 1.58 1.99 1.41 1.52 Patton State Hospital N/A N/A 2.36 2.53 2.72 Hotels 3.28 3.28 3.88 4.16 4.46 Ofc Bldgs/Motels 1.83 1.83 3.88 1.41 1.52 Supermarkets 3.28 3.28 1.31 4.16 4.46 NOTES: HCF = Hundred Cubic Feet = 748 gallons (1)On June 1, 2015 the District adopted Water Budget Based Rates. (2) SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions Starting in May 2022, the District transitioned from rates established by the City of San Bernardino to rates adopted as the result of a wastewater Cost of Service Analysis for the District's Sterling Natural Resource Center Water Reclamation Plant. EAST VALLEY WATER DISTRICT Active Services by Type Last Ten Fiscal Years 107 Year Ended Residential Multi-Family Total June 30, (1 to 3 units) (4+ units) Commercial Irrigation Fire Svcs Service 2015 18,584 497 1,268 313 1,321 21,983 2016 19,500 463 949 275 1,330 22,517 2017 19,526 463 988 275 1,339 22,591 2018 19,526 463 988 275 361 21,613 2019 19,883 474 681 322 252 21,612 2020 19,526 463 988 275 255 21,507 2021 19,526 463 988 275 255 21,507 2022 19,853 463 988 275 255 21,834 2023 19,876 474 715 354 260 21,679 2024 19,966 479 710 360 265 21,780 SOURCES: East Valley Water District - Customer Service and Finance Departments 0 5,000 10,000 15,000 20,000 25,000 Residential Multi-Family Commercial Irrigation Fire Svcs EAST VALLEY WATER DISTRICT Principal Customers Current Fiscal Year and Nine Years Ago 108 Water Percentage Water Percentage Consumed of Total Consumed of Total Customer (AF) Rank (%) (AF) Rank (%) San Bernardino City Unified School District 603 1 3.71% 556 1 2.69% Patton State Hospital 354 2 2.18% 414 2 2.00% San Manuel Indian Bingo & Casino 324 3 1.99% 201 6 0.97% City of Highland 271 4 1.67% 295 4 1.43% San Manuel Band of Mission Indians 217 5 1.33% 268 5 1.30% East Highlands Ranch 155 6 0.95% 299 3 1.45% Amusement Industry 144 7 0.88% - - 0.00% Valencia Lea Mobile Home Park 107 8 0.66% 127 8 0.61% Village Lakes Homeowners Association 105 9 0.65% - - 0.00% Victoria Village Apartments 97 10 0.60% 108 9 0.52% Stubblefield Mobile Home Parks & Offices - 140 7 0.68% Woodman Realty Inc. 106 10 0.51% Total - Top 10 2,377 14.62% 2,514 12.16% Total - Water Produced 16,273 100.00% 20,665 100.00% SOURCES: East Valley Water District - Customer Service and IT Departments 20152024 EAST VALLEY WATER DISTRICT Ratio of Outstanding Debt Last Ten Fiscal Years 109 Fiscal Year Revenue Bonds DWR Loans Capital Lease and Loan Certificates of Participation Installment Note Outstanding Debt $ Per Capita As a Share of Personal Income 2015 40,930,000$ 7,071,964$ 3,671,849$ -$ -$ $ 51,673,813 $ 508 1.44% 2016 39,615,000 6,818,565 3,299,108 - - 49,732,673 476 1.31% 2017 38,235,000 6,565,166 7,278,478 - - 52,078,644 510 1.37% 2018 36,800,000 6,721,695 6,392,308 - - 49,914,003 489 1.27% 2019 35,300,000 31,947,551 5,131,238 - - 72,378,789 710 1.73% 2020 33,720,000 69,565,404 4,295,104 - - 107,580,508 1,044 2.27% 2021 33,261,998 132,399,838 3,449,724 - - 169,111,561 1,642 3.31% 2022 32,288,904 145,368,048 2,582,889 - - 180,239,841 1,750 3.55% 2023 30,923,365 161,169,730 1,719,375 - - 193,812,470 1,864 * 2024 29,490,264 180,670,939 - - - 210,161,203 1,946 * NOTE: * This data was not developed in the format required for this fiscal year. SOURCE: East Valley Water District - Finance Department $0 $25,000,000 $50,000,000 $75,000,000 $100,000,000 $125,000,000 $150,000,000 $175,000,000 $200,000,000 Revenue Bonds DWR Loans Capital Lease and Loan Certificates of Participation Installment Note EAST VALLEY WATER DISTRICT Debt Service Coverage Last Ten Fiscal Years 110 Water Department Gross Operating Net Available Revenue(1)Expenses(2)Revenue Principal(3)Interest Total 20,662,750$ 12,915,690$ 7,747,060$ 1,546,490$ 1,813,348$ 3,359,838$ 2.31 22,543,107 15,048,582 7,494,525 1,851,139 1,718,658 3,569,797 2.10 25,257,709 14,717,219 10,540,490 1,926,956 1,653,322 3,580,278 2.94 27,537,072 16,134,461 11,402,611 2,479,570 1,584,820 4,064,390 2.81 27,071,082 16,614,399 10,456,683 2,904,466 1,593,181 4,497,647 2.32 27,466,707 17,487,780 9,978,927 2,564,310 1,456,842 4,021,152 2.48 29,738,333 17,638,854 12,099,479 4,703,778 1,104,438 5,808,216 2.08 30,465,196 21,415,253 9,049,943 2,100,233 957,953 3,058,186 2.96 29,330,516 21,162,833 8,167,683 2,141,913 917,000 3,058,913 2.67 30,689,900 20,839,114 9,850,786 2,197,774 885,675 3,083,449 3.19 Wastewater Department Gross Operating Net Available Revenue(1)Expenses(2)Revenue Principal Interest Total 2015 11,578,742$ 10,606,751$ 971,991$ 85,000$ 229,725$ 314,725$ 3.09 2016 12,095,372 10,463,081 1,632,291 90,000 225,775 315,775 5.17 2017 13,134,564 11,064,894 2,069,670 95,000 221,625 316,625 6.54 2018 13,758,976 12,817,762 941,214 95,000 217,350 312,350 3.01 2019 14,433,970 12,603,440 1,830,530 100,000 212,475 312,475 5.86 2020 22,954,385 12,186,049 10,768,336 105,000 207,350 312,350 34.48 2021 13,586,909 12,319,838 1,267,071 110,000 158,476 268,476 4.72 2022 16,697,201 12,784,498 3,912,703 170,000 100,145 270,145 14.48 2023 6,274,931 4,801,219 1,473,712 175,000 99,316 274,316 5.37 2024 7,188,774 5,085,853 2,102,921 175,000 98,274 273,274 7.70 NOTES: (1) (2)Operating expenses, less depreciation, for the utility fund. (3)Excludes Debt Service for Assessment Districts' Arroyo Verde and Eastwood Farms. SOURCE: East Valley Water District - Finance Department 2024 Coverage 2015 2016 2017 2018 2019 2020 2023 Year Ended June 30, Debt Service 2021 2022 Year Ended Gross revenue includes all operating revenue, interest income, other non-operating revenue and connection fees from the utility fund. Coverage Debt Service June 30, EAST VALLEY WATER DISTRICT Demographics and Economic Statistics Last Ten Calendar / Fiscal Years 111 County of San Bernardino Personal Personal Income Income District Unemployment Population (thousands Per Capita Population(3)(4)Rate(1)(3)(2)+of dollars)(2)+(dollars)(2)+ 2015 101,733 7.2%2,110,852 74,258,677$ 35,179$ 2016 104,457 6.0%2,126,539 77,453,102 36,422 2017 102,208 5.5%2,144,961 80,031,472 37,311 2018 102,000 4.5%2,160,049 83,514,331 38,663 2019 102,000 4.0%2,170,992 89,182,422 41,079 2020 103,000 6.5%2,183,239 100,359,889 45,968 2021 103,000 9.3%2,192,882 108,700,135 49,570 2022 104,000 5.4%2,193,656 108,081,645 49,270 2023 104,000 4.2%*** 2024 108,000 5.0%*** NOTES: + This data was revised in 2023(2) * This data was not developed in the format required for this fiscal year. SOURCES: (1)U.S. Department of Labor, Bureau of Labor Statistics (BLS) Census Bureau midyear population estimates. (2)Bureau of Economic Analysis (BEA) Computed using midyear population estimates. (3)Fiscal Year ends on June 30 of the year that is shown. (4)East Valley Water District - Finance Department June 30, Year Ended EAST VALLEY WATER DISTRICT Full-Time Equivalent Employees by Department Last Ten Fiscal Years 112 District Engineering &Water Administration Maintenance Operations Reclamation(1)Total 27.5 28.5 11 0 67* 27 28 13 0 68* 27 29 12 0 68* 26.5 29 13 0 68.5* 27.5 32 11 0 70.5* 26 30 11 0 67 25 30 11 0 66 26 30 11 9 76 26 30 11 9 76 26 28 11 8 73 NOTES: * Includes Part-Time Employees (PTEs) (1)Water Reclamation program started in FY 2021-22 SOURCES: East Valley Water District - Finance and Human Resources Departments Year Ended June 30, 2020 2021 2024 2018 2015 2016 2017 2019 2022 2023 0 10 20 30 40 50 60 70 80 District Administration Engineering & Maintenance Operations Water Reclamation EAST VALLEY WATER DISTRICT Operating and Capacity Indicators for Water and Wastewater Last Ten Fiscal Years 113 Annual Average Miles of Number of Production Production Water Main Fire Hydrants (MG) (MGD) 2015 316 3,005 5,680 16 2016 316 3,005 4,887 13 2017 316 3,005 5,286 14 2018 300 3,018 5,983 16 2019 300 3,025 5,268 14 2020 300 3,025 5,552 15 2021 300 3,029 6,121 17 2022 300 3,043 6,122 17 2023 300 3,048 5,347 15 2024 300 3,078 5,303 15 Annual Daily Miles of Service Sewerage Sewerage Wastewater Connections (MG) (MGD) 2015 224 19,544 2,271.96 6.22 2016 224 19,572 2,167.71 5.94 2017 260 20,290 2,175.40 5.96 2018 225 20,581 2,149.85 5.89 2019 214 20,563 2,091.45 5.73 2020 214 19,679 2,220.61 6.08 2021 214 19,686 2,220.61 6.08 2022 220 19,766 2,448.97 6.71 2023 220 19,831 2,138.63 5.86 2024 230 19,859 2,121.03 5.81 SOURCE: East Valley Water District - Engineering and Finance Departments Water System Wastewater System Year Ended June 30, Year Ended June 30, 114 EAST VALLEY WATER DISTRICT Capacity Charge Funds Year Ended June 30, 2024 115 Capacity Charge Funds Government Code Section 66013 requires local agencies that collect capacity charges to deposit and account for these fees in a separate capital facilities fund. In addition, local agencies are required to annually provide the information in this report to the public upon request. Government Code Section 66013 (b) (3) defines "Capacity charge" means a charge for public facilities at the time the charge is imposed or charges for new public facilities to be acquired or constructed in the future that are of proportional benefit to the person or property being charged, including supply or capacity contracts for rights or entitlements, real property interests, and entitlements and other rights of the local agency involving capital expense related to its use of the use of existing or new public facilities. " Government Code Section 66013 (d) outlines the reporting requirements on the capital facilities funds and expenditures. Government Code Section 66013 (f) (2) exempts capacity charges that are used to pay existing debt service from the reporting requirements of Section 66013 (d). Two of the District's capacity charges are used to pay existing debt service; therefore, they are exempt from the reporting requirements. For the purpose of enhancing transparency, the District has provided the reporting information on its capacity charges that are exempt from Section 66013 (d). The District has the following capacity charge funds: Water Capacity Fee Fund. This fund collects System Capacity Charges for new water service connections to pay for proportionate shares of the District equipment replacements and facility improvements. Wastewater Capacity Fee Fund. This fund collects a fee for the capacity used by new wastewater connections and the funds are used to pay facilities and to help ensure the wastewater collection system can contain additional wastewater flows from new customers. Water Reclamation Capacity Fee Fund. This fund collects fees for the expansion of the Sterling Natural Resource Center to treat the flows generated by new development. EAST VALLEY WATER DISTRICT Capacity Charge Funds Year Ended June 30, 2024 116 A summary of changes in Water Fund Capacity Fees collected for the year ended June 30, 2024 is as follows: Beginning of End of Categories Year Contributions UsageYear Storage 359,751$ $ 138,325 $ - $ 498,076 Treatment 874,057 42,372 - 916,429 Supply 525,663 62,873 - 588,536 Trans & Distribution 1,777,825 570,680 - 2,348,505 General 214,894 37,510 - 252,404 East Treatment Plant 775,389 470,648 - 1,246,037 4,527,579$ 1,322,408$ -$ 5,849,987$ A summary of Projects Funded by Capacity Fees for the year ended June 30, 2024: Categories CIP Project* FY 2023-24 Expended % Funded by Capacity Total Capacity Fees Usage Storage -$ 0% -$ Treatment Supply Trans & Distribution General New Treatment Plant -$ -$ Note: * The District did not have any CIP projects utilizing Capacity Fee funds for the year ended June 30, 2024. EAST VALLEY WATER DISTRICT Capacity Charge Funds Year Ended June 30, 2024 117 A summary of changes in Wastewater Fund Capacity Fees collected for the year ended June 30, 2024 is as follows: Beginning of End of Categories Year Contributions UsageYear Collection $ 1,978,498 $ 217,240 $ - $ 2,195,738 General 304,138 31,621 - 335,759 Greenspot Main 575,557 242,755 - 818,312 5th Street Main 228,737 96,484 - 325,221 Lynwood Main 57,451 24,243 - 81,694 3,144,381$ 612,343$ -$ 3,756,724$ A summary Project Funded by Capacity Fees for the year ended June 30, 2024: Categories CIP Project FY 2023-24 Expended % Funded by Capacity Total Capacity Fees Usage Collection -$ 0% -$ Transmission - Recharge - Operations - -$ -$ EAST VALLEY WATER DISTRICT Capacity Charge Funds Year Ended June 30, 2024 118 A summary of changes in Water Reclamation Fund Capacity Fees collected for the year ended June 30, 2024 is as follows: Beginning of End of Categories Year Contributions UsageYear Treatment 3,008,522$ $ 621,637 $ - 3,630,159$ 3,008,522$ 621,637$ -$ 3,630,159$ A summary Project Funded by Capacity Fees for the year ended June 30, 2024: Categories CIP Project FY 2023-24 Expended % Funded by Capacity Total Capacity Fees Usage Treatment -$ 0% -$ -$ -$   -1- REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor’s Report To the Honorable Board of Directors East Valley Water District We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the East Valley Water District (the entity) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements, and have issued our report thereon dated October 28, 2024. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the entity’s internal control over financial reporting (internal control) as a basis for designing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we do not express an opinion on the effectiveness of the entity’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.   -2- Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the entity’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. San Bernardino, California October 28, 2024  -1- October 28, 2024 Board of Directors East Valley Water District Highland, California We have audited the financial statements of the East Valley Water District (the entity) as of and for the year ended June 30, 2024, and have issued our report thereon dated October 28, 2024. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated April 9, 2024, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of the system of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the system of internal control of the entity solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. -2- Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence. Significant Risks Identified We have identified the possibility of the following significant risks: Management's override of internal controls over financial reporting – Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy. Revenue recognition – Revenue recognition is a generally accepted accounting principle that refers to the conditions under which an entity can recognize a transaction as revenue. Auditing standards indicate that recognizing revenue is a presumed fraud risk and usually classified as a significant risk in most audits. These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters of management override of controls or deviations from generally accepted accounting principles which caused us to modify our audit procedures or any related matters which are required to be communicated to those charged with governance due to these identified risks. Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the entity is included in Note 1 to the financial statements. There have been no initial selection of accounting policies or their application during 2024. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates and Related Disclosures Accounting estimates and related disclosures are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. The most sensitive accounting estimates affecting the entity’s financial statements are: Management’s estimate of the net pension liability and related deferred inflows and outflows of resources are based on actuarial reports by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. -3- Management’s estimate of the liability for other post-employment benefits (OPEB) and related deferred inflows and outflows of resources are based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. Management’s estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments and determined that it is reasonable in relation to the basic financial statements taken as a whole. Management’s estimate of depreciation expense is based on the useful lives of acquired assets. We evaluated the key factors and assumptions used to develop depreciation expense in determining that it is reasonable in relation to the financial statements taken as a whole. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the entity’s financial statements relate to: The disclosure of fair value of investments in the basic financial statements represents amounts susceptible to market fluctuations. The disclosure of capital assets (and related accumulated depreciation) in the basic financial statements is based on historical information which could differ from actual useful lives of each capitalized item. The disclosure of net pension liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions. Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates. The disclosures of the other post-employment benefits (OPEB) liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions. Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates. The disclosure of leases and subscription liabilities, right-to-use assets, and asset amortization in the basic financial statements is based on certain terms and assumptions in the agreements which could differ from actual amounts. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. There were no uncorrected misstatements noted. -4- In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. There were no such misstatements. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the entity’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit. Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter dated October 28, 2024. Management’s Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the entity, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the entity’s auditors. Other Information Included in Annual Reports Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the entity’s annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have: Applied certain limited procedures to the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Schedule of the Plan’s Proportionate Share of the Plan’s Net Pension Liability and Related Ratios, the Schedule of Plan’s Contributions, the Schedule of Changes in the Net OPEB Liability and Related Ratios, and the Schedule of OPEB Plan Contributions which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were not engaged to report on introductory and statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. -5- Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements. This report is intended solely for the information and use of the Board of Directors and management of the entity and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, Independent Auditor’s Report Board of Directors East Valley Water District Report on the Audit of the Financial Statements Opinion We have audited the financial statements of East Valley Water District (the District), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the District, as of June 30, 2024, and the changes in financial position, and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Other Matter Report on Summarized Comparative Information We have previously audited the District’s 2023 financial statements, and we expressed an unmodified opinion on the respective financial statements in our report dated October 11, 2023. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2023, is consistent, in all material respects, with the audited financial statements from which it has been derived. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the District’s basic financial statements. The supplementary information is presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual comprehensive financial report (ACFR). The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinion on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 28, 2024 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering District’s internal control over financial reporting and compliance. San Bernardino, CA October 28, 2024 Agenda Item #4h November 13, 20241 Meeting Date: November 13, 2024 Agenda Item #4h Discussion Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Adoption of 2025-26 Legislative Platform RECOMMENDATION That the Board of Directors adopt the 2025-26 Legislative Platform. BACKGROUND / ANALYSIS East Valley Water District (District) is committed to being an active and engaged public agency that advocates for legislation on behalf of the community. This includes monitoring, advocating, and engaging both the Federal and State legislations. Each year, the California Legislature introduces thousands of new bills and regulations that could impact District operations and customers. Given this high volume of activity, it is important to establish clear priorities through a Legislative Platform. The Legislative Platform is updated with the start of each new legislative session, in this case 2025 and 2026. The Legislative Platform identifies different roles and responsibilities within the organization, including the Board of Directors (Board), General Manager/CEO, staff, and legislative advocates. It provides direction for activities that the District should consider supporting or opposing. On October 10, 2024, the Legislative and Public Outreach Committee recommended the updated Legislative Platform be brought to the Board of Directors for consideration. Legislative activities require clear direction and concise perspectives to allow staff and advocates the ability to respond quickly to legislative actions. The Legislative Platform allows the Board to establish policy priorities, thus providing staff with a tool to assess which bills and regulations to engage. Staff may request the Board take a position on proposed legislative actions that are not covered in the Legislative Platform. Maintaining an effective advocacy program consists of industry coalitions, legislative staff discussions, legislator engagement, and on-record positions. There are times where the District may not agree with the entire concept of a bill but may be willing to engage to negotiate the elements of concern. Legislative advocacy includes being part of discussions where staff can share how a bill could positively or negatively impact District customers. This is especially important in areas where there could be substantial unintended consequences of proposed legislation. The District anticipates multiple matters of interest will be considered in the 2025-26 Agenda Item #4h November 13, 20242 Meeting Date: November 13, 2024 Agenda Item #4h Discussion Item sessions. While it won’t become entirely clear until after the bill introduction deadline, low-income rate assistance programs, water conservation requirements, clean fleet mandates, and water quality standards are items of interest the District will be closely monitoring. Staff will provide periodic updates on the session activity and items of interest to the Board. AGENCY GOALS AND OBJECTIVES I - Implement Effective Solutions Through Visionary Leadership C. Strengthen Regional, State and National Partnerships REVIEW BY OTHERS This agenda item has been reviewed by Public Affairs and Administration. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ William Ringland Public Affairs/Conservation Manager ATTACHMENTS 2025-26 Draft Legislative Platform Presentation platformLEGISLATIVE The Legislative Platform reflects the priorities adopted by Board of Directors through the Strategic Plan, Five-Year Work Plan, annual budget, and other planning documents. It is designed to serve as a guide for East Valley Water District’s legislative advocacy efforts. 2 0 2 5 - 2 6 District Headquarters: 31111 Greenspot Road, Highland, California 92346 DRAFT Consider Supporting • Policies and funding opportunities that facilitate the implementation of alternative energy elements at District facilities to offset operational needs and or provide supplemental electricity to the larger energy grid. • State legislation that focuses on technologically and economically feasible residential and commercial water use efficiency. • Federal and State development of bond or general fund-supported funding programs for water supply development, including new surface and groundwater storage, water quality, recycled water, and conservation- related programs and efficient, fair implementation of such programs. • Federal and State legislation that provides a streamlined approach and funding opportunities to assist in the process of septic-to-sewer conversion efforts. • Policies limiting the use and manufacturing of per and polyfluoroalkyl (PFAS) substances commonly received in wastewater collection/recycling infrastructure. • Federal and State efforts that ease the path to development of recycled water resources. • Legislation that advocates mitigating operational costs to EVWD and/or its ratepayers, thereby enhancing water affordability. • Legislation and regulatory action that supports the successful construction of the Delta Conveyance, or successor project in a timely manner. • Policies and funding opportunities that assist disadvantaged communities with low-income rate assistance but do not undermine affordability for all ratepayers and Proposition 218 and/or impose administrative or communications burdens that are disproportionate to the potential benefit to low-income ratepayers. Legislative & Regulatory PlatformThe Legislative Platform summarizes the organizational policy position regarding legislative and regulatory matters of concern. The Governing Board provides direction through this Legislative Platform that allows for optimal engagement in the development and implementation of rules that impact the community. Maintaining this document allows for the timely response to issues identified as important and consistent with the District’s legislative priorities. Staff will seek the Board’s guidance on issues that are not addressed within the adopted Legislative Platform. Roles & Responsibilities BOARD OF DIRECTORS • Review, advise and adopt the Legislative Platform. • Participate in meetings with legislators, staff and other public officials, as needed. • Testify at legislative and regulatory hearings on behalf of the District, as needed. • Refrain from lobbying, advocating or taking a position contrary to the Board’s adopted position. Board Members may, as allowed by law, take positions as an individual citizen so long as the correspondence clearly identifies that it is the position of the individual rather than the District. GENERAL MANAGER / CEO & STAFF • Monitor, analyze and take positions on potential actions that could impact East Valley Water District. • Coordinate advocacy efforts with the Board of Directors to promote the interests of the District to decision makers at all levels of government. • Participate in meetings with legislators, legislative and administrative staff members, trade associations, coalitions, Board of Directors and other public officials, as needed. • Seek timely Board of Directors approval of positions as needed for complex issues of significant concern where deviation from the principles may be advisable for community benefit. • Update the Legislative Platform, as approved by the Board of Directors. • Work with Legislative Advocates and Consultants to maintain Legislative Platform, as needed. • The General Manager/CEO and designated staff may participate in legislative advocacy on behalf of the Board of Directors, so long as it is consistent with the Strategic Initiatives and Legislative Platform. • Provide an exceptional level of transparency, ethics, and customer service in representing the District’s interest to all State officials, staff, and agencies. LEGISLATIVE ADVOCATE • Monitor, review, and advise staff of State legislation, budget impacts, funding opportunities, and issues which may directly or indirectly impact the District. • Obtain and monitor all bills, resolutions, files, journals, histories, etc. and share with District as appropriate. • Communicate the District’s positions on key actions to Members of the State Legislature and staff, as well as Committee and State agencies (as appropriate) and other interest groups. • As necessary, attend hearings and provide testimony on behalf of the District. Where appropriate, arrange opportunities for the District to participate in hearing testimonies or submission of comments. • Actively establish a strong identity and presence in Sacramento on behalf of the District. This effort shall be reinforced by day-to-day involvement in the regulatory, and legislative actions on behalf of this organization. • Provide an exceptional level of transparency, ethics, and customer service in representing the District’s interest to all State officials, staff, and agencies. Consider Opposing • State legislation that seeks to limit or alter the authority and fiduciary role of the Board of Directors to manage the water and wastewater systems, impose unreasonable unfunded state mandated programs, or increase fees, property-related charges or taxes on District customers. • State legislation that would inappropriately assert the authority of the Legislature to alter or condition existing authority to construct, operate and maintain State Water Project facilities in order to convey water across the Sacramento-San Joaquin Delta. Additionally, those that would negatively impact voluntary agreements reached relating to this statewide effort. • State legislation that would hinder the exercise of existing District authority such as public contracts, procurement, rate and fee setting, financial administration, public records, and human resources. • State legislation that would result in the implementation of a requirement which is duplicative or inconsistent with current water/wastewater regulations. • Federal and State legislation and regulations that hinder the ability of the District to protect and secure critical infrastructure from cyber or physical threats and damages. • Federal and State legislation to establish Public Health Goals and Maximum Contaminant Levels outside of the procedures set forth in the Federal and California Safe Drinking Water Acts. • The expansion of broad/nonlocalized water conservation and water use efficiency program mandates that unreasonably constrain the Board of Directors to implement restrictions at the local level and therefore increase rates to customers. • State legislation that would establish a statewide or locally implemented fee or tax on water use. • Regulatory and legislative actions that would compromise the existing protections awarded to historical water rights. • Legislation that implements requirements based on developing technology and markets which lack a competitive bidding environment. 2025-26 Legislative Platform Consider Supporting • Policies and funding opportunities that facilitate the implementation of alternative energy elements at District facilities to offset operational needs and or provide supplemental electricity to the larger energy grid. • State legislation that focuses on technologically and economically feasible residential and commercial water use efficiency. • Federal and State development of bond or general fund-supported funding programs for water supply development, including new surface and groundwater storage, water quality, recycled water, and conservation- related programs and efficient, fair implementation of such programs. • Federal and State legislation that provides a streamlined approach and funding opportunities to assist in the process of septic-to-sewer conversion efforts. • Policies limiting the use and manufacturing of per and polyfluoroalkyl (PFAS) substances commonly received in wastewater collection/recycling infrastructure. • Federal and State efforts that ease the path to development of recycled water resources. • Legislation that advocates mitigating operational costs to EVWD and/or its ratepayers, thereby enhancing water affordability. • Legislation and regulatory action that supports the successful construction of the Delta Conveyance, or successor project in a timely manner. • Policies and funding opportunities that assist disadvantaged communities with low-income rate assistance but do not undermine affordability for all ratepayers and Proposition 218 and/or impose administrative or communications burdens that are disproportionate to the potential benefit to low-income ratepayers. Legislative & Regulatory PlatformThe Legislative Platform summarizes the organizational policy position regarding legislative and regulatory matters of concern. The Governing Board provides direction through this Legislative Platform that allows for optimal engagement in the development and implementation of rules that impact the community. Maintaining this document allows for the timely response to issues identified as important and consistent with the District’s legislative priorities. Staff will seek the Board’s guidance on issues that are not addressed within the adopted Legislative Platform. Roles & Responsibilities BOARD OF DIRECTORS • Review, advise and adopt the Legislative Platform. • Participate in meetings with legislators, staff and other public officials, as needed. • Testify at legislative and regulatory hearings on behalf of the District, as needed. • Refrain from lobbying, advocating or taking a position contrary to the Board’s adopted position. Board Members may, as allowed by law, take positions as an individual citizen so long as the correspondence clearly identifies that it is the position of the individual rather than the District. GENERAL MANAGER / CEO & STAFF • Monitor, analyze and take positions on potential actions that could impact East Valley Water District. • Coordinate advocacy efforts with the Board of Directors to promote the interests of the District to decision makers at all levels of government. • Participate in meetings with legislators, legislative and administrative staff members, trade associations, coalitions, Board of Directors and other public officials, as needed. • Seek timely Board of Directors approval of positions as needed for complex issues of significant concern where deviation from the principles may be advisable for community benefit. • Update the Legislative Platform, as approved by the Board of Directors. • Work with Legislative Advocates and Consultants to maintain Legislative Platform, as needed. • The General Manager/CEO and designated staff may participate in legislative advocacy on behalf of the Board of Directors, so long as it is consistent with the Strategic Initiatives and Legislative Platform. • Provide an exceptional level of transparency, ethics, and customer service in representing the District’s interest to all State officials, staff, and agencies. LEGISLATIVE ADVOCATE • Monitor, review, and advise staff of State legislation, budget impacts, funding opportunities, and issues which may directly or indirectly impact the District. • Obtain and monitor all bills, resolutions, files, journals, histories, etc. and share with District as appropriate. • Communicate the District’s positions on key actions to Members of the State Legislature and staff, as well as Committee and State agencies (as appropriate) and other interest groups. • As necessary, attend hearings and provide testimony on behalf of the District. Where appropriate, arrange opportunities for the District to participate in hearing testimonies or submission of comments. • Actively establish a strong identity and presence in Sacramento on behalf of the District. This effort shall be reinforced by day-to-day involvement in the regulatory, and legislative actions on behalf of this organization. • Provide an exceptional level of transparency, ethics, and customer service in representing the District’s interest to all State officials, staff, and agencies. Consider Opposing • State legislation that seeks to limit or alter the authority and fiduciary role of the Board of Directors to manage the water and wastewater systems, impose unreasonable unfunded state mandated programs, or increase fees, property-related charges or taxes on District customers. • State legislation that would inappropriately assert the authority of the Legislature to alter or condition existing authority to construct, operate and maintain State Water Project facilities in order to convey water across the Sacramento-San Joaquin Delta. Additionally, those that would negatively impact voluntary agreements reached relating to this statewide effort. • State legislation that would hinder the exercise of existing District authority such as public contracts, procurement, rate and fee setting, financial administration, public records, and human resources. • State legislation that would result in the implementation of a requirement which is duplicative or inconsistent with current water/wastewater regulations. • Federal and State legislation and regulations that hinder the ability of the District to protect and secure critical infrastructure from cyber or physical threats and damages. • Federal and State legislation to establish Public Health Goals and Maximum Contaminant Levels outside of the procedures set forth in the Federal and California Safe Drinking Water Acts. • The expansion of broad/nonlocalized water conservation and water use efficiency program mandates that unreasonably constrain the Board of Directors to implement restrictions at the local level and therefore increase rates to customers. • State legislation that would establish a statewide or locally implemented fee or tax on water use. • Regulatory and legislative actions that would compromise the existing protections awarded to historical water rights. • Legislation that implements requirements based on developing technology and markets which lack a competitive bidding environment. 2025-26 Legislative Platform platformLEGISLATIVE The Legislative Platform reflects the priorities adopted by Board of Directors through the Five-Year Work Plan, annual budget, and other planning documents. It is designed to serve as a guide for East Valley Water District’s legislative advocacy efforts. LE A D E R S H I P | P A R T N E R S H I P | S T E W A R D S H I P Positions Taking a public position can help advocate the District’s stance on a piece of legislation or regulation. The District may consider, but is not limited to, the following public positions: The support position is the District’s public display of agreement with the current piece of legislation. Any bill receiving this designation aligns with the current Legislative Platform and serves in the best interest of the District, Board of Directors and ultimately customers. SUPPORT The oppose position states the District’s strong concerns with how the legislation is currently drafted and the negative impacts to the District’s customers. Bills receiving this position will need to be significantly amended or altered to receive any adjustment or support from EVWD. OPPOSE The support if amended and oppose if amended positions allow the District to express concerns with the current text in a drafted piece of legislation but also demonstrates to the author a willingness to collaborate on correcting/altering the bill. SUPPORT/OPPOSE IF AMENDED A watch position will be applied to all water and wastewater pieces of legislation that the District is currently monitoring but has not taken a public stance on the bill. This position could be in place as the language of the bill is being drafted and the impacts to the District are either unknown or minor. WATCH Monitoring Tiers Due to the significant volume of legislation drafted ever year, the District has established a classification system to prioritize bills and the level of engagement required for each bill. This classification is determined by the General Manager/CEO and staff and is meant to provide clarity, flexibility, and a clear demonstration on priorities of the District. A bill’s tagged monitoring tier can be adjusted throughout the legislative session as language is added/deleted or other factors adjust the priority of a bill. These tiers include the following: This tier is the highest priority for the District and one where staff will express a public position for a bill. A description of the bill will be included in a weekly briefing to the Board of Directors along with any position or status changes. Public positions can be expressed via individual letters, coalition letters and/or legislative advocacy appropriate for the circumstance. Tier  This tier is a high priority for the District, without the District taking a public position on the legislation. These bills have the potential to have a high impact on the District and customers. Tier  This tier allows staff to monitor a bill that as currently written will have a low impact on the District and customers. Tier 2 0 2 5 - 2 6 District Headquarters: 31111 Greenspot Road, Highland, California 92346 ea s t v a l l e y . o r g William Ringland, Public Affairs/Conservation Manager November 13, 2024 Legislative Platform 2025-26 2 •Define roles and responsibilities •Board of Directors •General Manager/CEO •Legislative Advocate •Policies and legislation to consider supporting and opposing •Outlines public positions •Monitoring tiers/level of engagement LEGISLATIVE PLATFORM Board of Directors General Manager/CEO Staff Legislative Advocate 3 •Legislative advocacy throughout the three phases of a new initiative: •Discovery •Legislation •Regulations •Participation in: •Industry Coalition/Association Activities •Legislative and administration staff •Direct engagement with legislators •Formal positional statements DISTRICT ENGAGEMENT Discovery Legislation Regulations 4 •Allows for timely engagement •Provides perspective of the organizational and community impacts •Impact to disadvantaged community members •Cost of program implantation •Limitations of the District •General approach •Maintain ability to determine the best course of action at a local level •Discourage overgeneralized and arbitrary targets, requirements, and standards •Support water affordability, without the implementation of a water use tax BENEFITS OF MAINTAINING A LEGISLATIVE PLATFORM 5 •District engages throughout the process based upon the adopted Legislative Platform •Allows for timely engagement •Provides perspective of the District and community impacts UPCOMING LEGISLATIVE PRIORITIES East Valley Water District Alternative Energy PFAS Substance Regulation Low-income Rate Assistance Water Right Modernization QUESTIONS Agenda Item #4c November 13, 20241 Meeting Date: November 13, 2024 Agenda Item #4c Public Hearing 1 2 3 9 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Adoption of Ordinance 406 - Updating East Valley Water District Rules and Regulations for Water Service, Public Hearing RECOMMENDATION That the Board of Directors adopt Ordinance 406 - Updating East Valley Water District Rules and Regulations for Water Service. BACKGROUND / ANALYSIS The updated water and wastewater utility rates adopted by the District in May 2024 included changes in billing methodology for commercial customers, adjustments to indoor water allocations per state guidelines, and other adjustments that required changes to the District’s water regulations Ordinance before the new water rates take effect on January 1, 2025. As changes to the Ordinance require a public hearing and related public notifications, staff took this opportunity to conduct a brief review of the entire ordinance to identify any other minor revisions needed in order to ensure the language in the Ordinance is aligned with District procedures and vice versa. Several proposed changes were identified and are shown as changes in the attached mark-up of Ordinance 406 The most significant proposed changes to Ordinance 406 include: •Reduce indoor water allocation from 55 to 47 gallons per person per day •Define institutional water budgets for schools/Patton to a calculation based on student/patient populations •Define new flat rate billing methodology for commercial customers This agenda item requires a public hearing, and notices about this evening’s hearing have been posted in a locally circulated newspaper both 14 days and 7 days in advance of the hearing. In addition, updates to Ordinance 406 have been made available for public inspection, 10 days prior to the hearing. AGENCY GOALS AND OBJECTIVES IV - Promote Planning, Maintenance and Preservation of District Resources B. Enhance Planning Efforts that Respond to Future Demands Agenda Item #4c November 13, 20242 Meeting Date: November 13, 2024 Agenda Item #4c Public Hearing 1 2 3 9 C. Dedicate Efforts Toward System Maintenance and Modernization REVIEW BY OTHERS This agenda item has been reviewed by the Customer Service and Finance Departments. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS EVWD Ord 406 - Water Regulations Ordinance 406 1 ORDINANCE NO. 406 AN ORDINANCE OF THE EAST VALLEY WATER DISTRICT RESCINDING ORDINANCE NO. 403 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“ Be it ordained by the Board of Directors of the East Valley Water District, as follows, that Ordinance No. 403 is hereby rescinded, and this Ordinance 406 is enacted as follows: SECTION 1. INDEX Section 1 Index 1 Section 2 General Provisions 2 Section 3 Definitions 3 Section 4 Water Department 5 Section 5 General Rules 6 Section 6 Application for Water Service 9 Section 7 Temporary Service 12 Section 8 Fire Protection 13 Section 9 Cross-Connection Control 14 Section 10 Customer Billing Procedures 20 Section 11 Complaints and Disputed Bills 24 Section 12 Disconnection for Non-Payment 25 Section 13 Adding Delinquent Charges to Tax Roll 26 Section 14 Charges and Deposits 26 Section 15 Water Conservation 29 Section 16 Effective Date 37 Ordinance 406 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 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 Ordinance 406 3 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. 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 - Shall mean 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, 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. 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 with 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. Ordinance 406 4 3.11 District - Shall mean the East Valley Water District, San Bernardino County, California. 3.12 Director of Engineering and O perations - Shall be a Registered Civil Engineer of the State of California. 3.13 Engineering Services - The Engineering services provided by the District shall include technical and procedural guidance, professional consultant services, project coordination, and plan checking. 3.14 Financial Officer - Shall be the Treasurer appointed by the Board of Directors. 3.15 Fire Hvdrant - 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 - Shall mean the General Manager/Chief Executive Officer of the District. 3.17 Governing Body - Shall mean the Board of Directors of the East Valley Water District. 3.18 Inspector - Shall mean 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 the 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. 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 service with a building that serves as a single-family home, duplex or triplex, apartments, co-operatives, or townhouses. 3.28 Secretary -The Secretary to the Governing Body. Ordinance 406 5 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 Director of Engineering and Operations, 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. SECTION 4. WATER DEPARTMENT 4.01 Creation - A Water Department is hereby created comprised of the Directors, the General Manager, the Financial Officer, and Director of Engineering and Operations 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 Director of Engineering and Operations - The position of Director of Engineering and Operations is hereby created. The Director of Engineering and Operations 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 Director of Engineering and Operations 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 Director of Engineering and Operations 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 Director of Engineering and Operations may be performed by the General Manager or by an additional employee or employees as designated by the Director of Engineering and Operations 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 Ordinance 406 6 do whatever else is necessary or directed by the General Manager to set up and maintain an efficient and 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 Director of Engineering and Operations. 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 Director of Engineering and Operations, 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, 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 Non-Compliance 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 prov1s1ons 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 Ordinance 406 7 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 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 Director of Engineering and Operations. 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 Proper tv - 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 stops or valves, 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. 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 Ordinance 406 8 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. 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 tum 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, 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 Ordinance 406 9 installed location. 5.28 Curb Stop - Each service connection installed by the District shall be equipped with a curb stop, or wheel valve, on the inlet side of the meter. Such valve, or curb stop, is intended for the exclusive use of the District in controlling the water supply through the service connection pipe. If the curb stop, 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 tum on service until such time as the District 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 appear 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 -A property owner or his/her agent, designated in writing, shall make application for regular water service by personally signing a Service Agreement provided by the District and paying the required fees. The property owner will remain the primary account holder, or Customer of Record, with respect to District services for as long as they own the property. 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 Additional Customer of Record - If the Property owner rents the premises to a tenant, the tenant may have water and other services instituted in their name by completing an Owner Authorized Billing Agreement. The tenant and owner must both sign the agreement, and the District must be provided with a copy of an active 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 Owner Authorized Billing Agreement 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. 6.03 Pavment 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 residential, commercial or retail unit shall be deposited at Ordinance 406 10 the time application for 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 Exception - The 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 non-payment. 6.04.02 Security Deposit Refund -– Upon customer request, Refunds 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 Residential - The District shall refund each security deposit to a residential customer as follows: a. Where single-family residential 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, the customer may request a refund of the full deposit. 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 any time after being locked off for non- payment. b. Where multi-family residential customer deposits 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. c. 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. Ordinance 406 11 6.04.02.02 Non-Residential - The District shall refund the security deposit for commercial, retail, industrial, fire service and irrigation 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 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, curb stop, wheel valve, or coupling shall be maintained by the District. All pipes and fixtures extending or laying beyond the meter coupling 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 stop or the private Ordinance 406 12 shutoff. The District's jurisdiction and responsibility ends at the customer's connection to the meter. 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. 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 the District - Upon completion of such installation as approved by the District, the facilities shall be dedicated to and become property of the District. 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 Director of Engineering and Operations. 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 Ordinance 406 13 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 H ydrant - 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. 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 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 Ordinance 406 14 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 firefighting 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 Month) 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, 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 owner's 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: Ordinance 406 15 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 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 system 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 Ordinance 406 16 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. 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 Controlled Cross-Connections - 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, pollution (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 pollution 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. c. Pollution Hazard - The term "pollution 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 Ordinance 406 17 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 po1luted in a form or concentration which would constitute a health, system, pollution, 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 Potable Water - The term "potable water" shall mean any public/private water supply that has been investigated and approved for human consumption. 9.03.17 Non-Potable Water - The term "non-potable water" shall mean a water supply that has not been approved for human consumption. 9.03.18 Used Water - 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 because 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 Ordinance 406 18 be located at or near the property line of the Premises or immediately outside the building being 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 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-changer type that utilizes 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 have 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. Ordinance 406 19 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 Building RPP Cooling Towers RPP Fire Systems (not interconnected, interconnected) RPP, DC Hospitals - Medical Buildings, Mortuaries, Autopsy Facilities, Nursing, RPP Irrigation Systems - Premises having separate systems: Parks, 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 Steam Facilities RPP Public Swimming Pools, and Pools at Apartments, Condominiums, 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 Ordinance 406 20 District may refuse to restore such service to the Premises until the Cross-Connection is remedied and an Approved Backflow Prevention Device is installed and operated in accordance with this Section. 9.09 Administration - The District shall appoint at least one (I) person trained in Cross- Connection control to administer the provisions of this Section. SECTION 10. CUSTOMER BILLING PROCEDURES 10.01 Establish Rates and Charges - The Board of Directors shall from time to time establish rates and charges for water and other service provided by the East Valley Water District by Resolution. 10.02 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. 10.03 Tiered Water Use - The District charges a commodity charge for potable water use in three separate pricing tiers. Tier 1 is an allocation for indoor water use. Tier 2 is an allocation for efficient outdoor use. Tiers 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. 10.04 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, and 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/Single-Family, Multi- Family/Residential, and Irrigation, and Non-Residential. 10.05 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. 10.06 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 recreational areas of school yards. Ordinance 406 21 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 10.07 Residential Indoor Water Budget - A residential indoor water budget is calculated by multiplying the number of persons per household by 55 47 gallons for every day by the number of dwelling units by the Drought Factor in a billing periodin a billing period (42 gallons beginning January 1, 2030). For example, if there are 4 persons people in a single-unit residence, the daily water budget would be 220 188 gallons (4 persons people x 1 unit x 1 Drought Factor x 55 47 gallons). If there are 28 days in a billing period, the total indoor water budget would be 6,1605,264 gallons (220 188 gallons/day x 28 days = 6,1605,264 gallons) or 8.247.04 billing units (6,1605,264 gallons ÷ 748 gallons per billing unit). 10.08 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, 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.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). The drought factor can be used to further adjust the calculation during a drought emergency. Institutional Water Budgets - Indoor and Outdoor budgets will be calculated for Institutional customers (Schools, Patton) using the same methodology as used for residential indoor and outdoor water budgets. For Indoor budget purposes, a full-time patient will be allocated the same number of gallons per day as a residential occupant, while students will be allocated 5 gallons per day, during the billing period. Patient/Student population numbers established for billing purposes may be reviewed once every two years, upon request. For Outdoor budget purposes, irrigated turf used for recreation by institutional accounts may be considered special landscapes qualifying for Row B (above) plant factors, subject to staff review. 10.0810.09 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. 10.10 Non-Residential Mixed Use Water BudgetsCommercial Water Accounts - 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.Commercial mixed-use water accounts no longer have water budgets based on historical usage and a 90% Tier 1, 10% Tier 2 allocation. Beginning January 1, 2025 commercial customers will be billed a uniform rate for each unit of water used. The uniform rate will be based on commercial customers’ total usage and their fair share of total costs. Ordinance 406 22 10.11 Water Budget Drought Factor - Water budgets can be adjusted in times of threatened water supply availability 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. 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. 10.12 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 either of the District Headquartersservice counters. Rules pertaining to applicable water budget adjustments are outlined on the water budget adjustment form. 10.13 Liability for Water Service - The property owner shall be held liable for water service charges until such time as the District is notified in writing to transfer the account to another property owner. 10.14 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 the following conditions must be satisfied for a Leak Credit to be issued:  The customer's water use was more than 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; and  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 the customer's water use, including water use as a result of the 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. 10.15 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. 10.16 Owner Liability - The property owner remains responsible for all charges owed to the District whether or not the property owner lives on the premises or signs the application for water service. 10.17 Meter Reading, Billing Period, and Due Date - The billing will be based on the periodic meter readings which will normally range between 26 and 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, eight days after the meter readings. Current Ordinance 406 23 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. Accounts with one or more returned checks may be required to make future payments by cash, money order, or charge card only. 10.18 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 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. 10.19 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. 10.20 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. 10.21 Billing Period - The regular billing period will be monthly. 10.22 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 system charge. 10.23 Payment of Bills - Bills for water service shall be rendered at the end of each billing period and are due and payable upon presentation. If full payment is not received at the business office of the District on or before the final due date, the bill shall become past due and delinquent. 10.24 Delinquency Notice - A delinquency notice shall be mailed to customers whose accounts are delinquent, warning that service is subject to disconnection. The delinquency notice will contain all the following: • the name and address of the customer; • the amount of the delinquency; • the date by which payment arrangements must be made 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 Ordinance 406 24 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. See Section 12 of this Ordinance for Disconnection Procedures. 10.25 Removal of Delinquency - At the end ofOnce each calendar year, customers may request that the District remove one unpaid delinquency from the record of their account when one or more delinquencies have occurred during the previous 12 months. 10.26 Legal Action - All unpaid rates, charges and penalties herein provided may be collected by legal action or by a collection agency. 10.27 Costs - Defendant shall pay all costs of legal action in any judgment rendered in favor of the District, including reasonable attorney's fees. 10.28 Discontinuing Service - Customers desiring to discontinue service should notify the District prior to vacating the premises. Owners shall be liable for on-going charges between tenancy, and in the event of sale, up to the recording date of title to the property being 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 Clerk, 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 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. Ordinance 406 25 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 (6) 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 NON-PAYMENT 12.01 Disconnection for Non-Payment - Residential water service shall be discontinued if payment for water service is not made within sixty (60) calendar days of the date of mailing the delinquent notice. 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 may be discontinued if payment for service is not made within fifteen (15) calendar days. At no time shall the District discontinue water service at a time when the District offices are closed. 12.01.01 Tenant Occupied Property - If water and other services to an account, where the tenant is shown as the Customer of Record, are discontinued for non-payment, the account will be revised 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 consent 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 Pa)'y 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. 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 Ordinance 406 26 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, payment card, money order, or cashier's check. 12.06 Partial Pavments - 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 CHARGES 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 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 updated in the District' s Schedule of Water and Wastewater Rates and Charges and adopted by separate Board resolution. 14.02 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 security deposit shall be refunded to the customer as provided in Section 6.04.02 herein. 14.03 Service Initiation Charge - The service initiation charge is a non-refundable charge which covers the reasonable District costs for initiating water service. Ordinance 406 27 14.04 Water System Charge - The system charge is the monthly availability charge applicable to all metered services and shall apply whether premises served by the meter are occupied. This charge will vary based on the size of the meter. 14.05 Commodity Charge - The commodity charge is the charge per hundred cubic feet (HCF) of water registered by the District' s water meter. Commodity charges are assessed in three tiers with ascending rates, and the number of HCF billed in each tier is determined by a customer's water budget as explained in a previous section of this ordinance. 14.06 Delinquent Charge - 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. 14.07 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. 14.08 Service Reconnect Charge - The service 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. 14.09 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. 14.10 AMI Opt-Out Fee - The AMI opt-out fee will be assessed when a customer has made written request not to have an AMI meter installed at their property and covers the costs of staff and equipment in taking a manual read of the opt-out customer's meter. 14.11 Returned Payment Fee - The returned payment fee is a charge which covers the reasonable administrative cost and banking charges for processing a returned check , or to respond to a disputed charge where a payment card was fraudulently used to make payment on an account. 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. Accounts with one or more returned checks may be required to make future payments by cash, money order, or charge card only. 14.12 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. 14.13 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. 14.14 Fire Hydrant Installation Charge - The charge for installation of fire hydrants as may be required. 14.15 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. Ordinance 406 28 14.16 Backflow Device Installation Fee -This fee will be collected to cover the cost of the installation of a backflow device by District staff if the property owner requests that the District install the device. 14.17 Backflow Inspection Fee - The charge will cover the cost of inspecting a newly installed backflow prevention device where District staff has not performed the installation. 14.18 Backflow Compliance Testing Fees - The charge to cover costs of District staff conducting an initial compliance test of a customer device. If District staff will conduct annual compliance tests, customers may elect to pay for the annual test with a monthly charge billed to their water account. 14.19 Backflow Annual Administration Fee - This fee is an annual assessment to customers to cover the cost of administering a backflow compliance program. 14.20 Water 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. 14.21 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. 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. 14.22 Fire Service Connection Charge - The charge for installation of fire services as may be required. 14.23 Inspection Charge - Where a customer service connection or facility requires inspection by District personnel, the customer shall be charged for such inspection. 14.24 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 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. 14.25 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 14.27. 14.26 Water System Desi gn 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. 14.27 Engineering New Development Service Charges - The following Engineering/New Development Service charges will be established based on the calculated estimate of the District's time and effort spent on assisting- customers who have a requirement to construct water facilities: • Drafting of an Availability Letter • Construction Inspection • Drafting/preparing revisions to a Development Agreement Ordinance 406 29 • Development and Engineering Research • Development Meeting • Easement / Quitclaim Processing • Water/ Sewer Inquiry • New Construction Chlorination and Flushing • Water Quality Sampling • Plan Checking • Drafting a Will Serve Letter 14.28 Construction Water Charge - The charge for construction water will be calculated at the Tier 3 rate. 14.29 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. 14.30 Valve Can Deposit - The valve can deposit is a refundable charge that is used to ensure all valve cans and caps are constructed to final grade before a water system 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. 14.31 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 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 Permanent Water Conservation Measures - The District’s permanent water conservation measures are in effect at all times to protect and ensure a safe and reliable water supply. . 15.01.01 Excessive Irrigation and Related Waste - No property within the 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. 15.01.02 Run-off - The free flow of water away from a service address is prohibited and shall be presumptively considered excessive irrigation and waste. 15.01.03 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/CEO, except to maintain health and safety standards. 15.01.04 Vehicle Washing - The washing of cars, trucks or other vehicles must be conducted with a hose equipped with an automatic shut-off device, or at a commercial vehicle washing facility. 15.01.05 Decorative Water Features - Water fountains or other decorative water features must re- circulate water. 15.01.06 Irrigation After Measurable Rainfall - The application of potable water to outdoor landscape for irrigation purposes during or within 48 hours after at least ¼ inch of rainfall is prohibited. Ordinance 406 30 15.01.07 Drinking Water Provided by Restaurants - Restaurants are prohibited from serving drinking water to patrons unless requested. 15.01.08 Restaurants - All restaurants are required to use water conserving pre-rinse dish wash spray valves. 15.01.09 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. 15.01.10 Irrigation of Ornamental Turf on Medians and Parkways- Medians and bordering parkways located within the right-of-way are prohibited from using potable water to irrigate turf. Bordering parkways are considered the strips of non-functional ornamental turf adjacent to the street. The continued irrigation and preservation of trees is encouraged. 15.01.11 Recreational Water Features - Recreational water features, such as pools and spas, are encouraged to use evaporation resistant covers. 15.01.12 Leak Repair - All customers and service area residents are encouraged to repair leaks to reduce water waste in a timely manner. 15.01.13 Budget-Based Rates – The District will maintain a budget-based rate structure for all customers to encourage efficient use of water. 15.01.14 Metering – The District will utilize Advanced Metering Infrastructure (AMI) meters to minimize water loss, unbilled usage, and to provide more timely information on water use. 15.01.15 Water Use Evaluations - The District will provide water use evaluations at no charge to customers. The District may provide historical water use data to commercial and industrial facilities for use in developing water conservation plans for their facilities. 15.01.16 Indoor Rebate Programs - The District will implement programs to offer rebates to customers for indoor high efficiency appliances and fixtures. 15.01.17 Outdoor Rebate Programs - The District will implement programs to offer rebates to customers for high efficiency outdoor irrigation and other outdoor water use reduction measures. 15.01.18 Landscape Irrigation - The District will encourage efficient outdoor use and discourage everyday watering to achieve conservation. The District may determine that landscape irrigation shall be conducted only during specific hours and/or days and may impose other restrictions on the use of water for such irrigation. 15.02 Stage No. 1 - Water Shortage Warning: A Water Shortage Stage 1 – Water Shortage Warning shall be in effect when the District determines there is a water shortage supply, or threatened shortage, condition of up to 10%, or if directed by an executive order or regulation. The Board of Directors may then, by resolution, declare a water shortage condition to prevail, and authorize the General Manager/CEO to enact the following conservation measures in addition to the permanent water conservation measures. During these conditions, all water customers are advised to 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 Outreach and Education - The District will implement outreach and education programs encouraging outdoor and indoor water use efficiency. Ordinance 406 31 15.03 Stage No. 2 - Moderate Water Shortage: A Water Shortage Stage 2 – Moderate Water Shortage shall be in effect when the District determines there is a water supply shortage, or threatened water shortage, condition of up to 20%, or if directed by an executive order or regulation. The Board of Directors may then, by resolution, declare a water shortage condition to prevail, and authorize the General Manager/CEO to enact the following conservation measures in addition to the permanent water conservation measures and water conservation measures implemented in Stage No. 1. 15.03.01 Leak Repair – Customers are encouraged to repair water leaks within 72 hours of notification from the District. 15.03.02 Outreach and Education - The District will expand its public information campaign on the water supply conditions and encourage efficient water use indoors and outdoors. 15.04 Stage No. 3 – Significant Water Shortage: A Water Shortage Stage 3 – Significant Water Shortage shall be in effect when the District determines there is a water shortage supply, or threatened shortage, condition of up to 30%, or if directed by an executive order or regulation. The Board of Directors may then, by resolution, declare a water shortage condition to prevail, and authorize the General Manager/CEO to enact the following conservation measures may in addition to the permanent water conservation measures and conservation measures implemented in Stage No. 1 and Stage No. 2. 15.04.01 Decorative Water Features – Customers are encouraged to not empty, refill, or add water to decorative water features, including ponds, fountains, and artificial lakes. Exceptions may be made by the General Manager/CEO to sustain biological life, such as fish, or for municipally owned or operated ponds. 15.04.02 Recreational Water Features – Customers are encouraged to not empty, refill, or add water to recreational water features, such as pools or spas. Exceptions may be made by the General Manager/CEO for municipally owned or operated pools. 15.04.03 Non-recirculating Water Systems – Customers are encouraged to retrofit non-recirculating systems at car washes and commercial laundry facilities to install recirculation systems. 15.04.04 Leak Repair – Customers must repair leaks within 48 hours of notification from the District. 15.05 Stage No. 4 – Severe Water Shortage Emergency: A Water Shortage Stage 4 – Severe Water Shortage shall be in effect when the District determines there is a water shortage supply, or threatened shortage, condition of up to 40%, or if directed by an executive order or regulation. The Board of Directors may then, by resolution, declare a water shortage condition to prevail, and authorize the General Manager/CEO to enact the following conservation measures in addition to the permanent water conservation measures and conservation measures implemented in Stage No. 1, 2, and 3. 15.05.01 Vehicle Washing - The washing of cars, trucks or other vehicles is not permitted except at commercial vehicle washing facilities. 15.05.02 Decorative Water Features - Emptying, refilling, or adding water to decorative water features is prohibited. Exceptions may be made to sustain biological life, such as fish, or for municipally owned or operated ponds. Requests for variances in water budgets will not be accepted. 15.05.03 Recreational Water Features - Emptying, refilling, or adding water to recreational water features is prohibited. Exceptions may be made by the General Manager/CEO for municipally owned or operated pools. Requests for variances in water budgets will not be accepted. Ordinance 406 32 15.05.04 Leak Repair – Customers must repair leaks within 24 hours of notification from the District. 15.05.05 Indoor Rebate Programs - The District will expand its indoor rebate program to assist customers with mandatory conservation efforts. 15.05.06 Outdoor Rebate Programs - The District will expand its outdoor rebate program to assist customers with mandatory conservation efforts. 15.05.07 Outreach and Education – The District will expand targeted communications focusing on customers with tier 3 usage and provide educational opportunities, including workshops, classes, and other public-facing community events. 15.06 Stage No. 5 - Critical Water Shortage: A Water Shortage Stage 5 – Critical Water Shortage shall be in effect when the District determines there is a water supply shortage, or threatened shortage, condition of up to 50%, or if directed by an executive order or regulation . The Board of Directors may then, by resolution, declare a water shortage condition to prevail, and authorize the General Manager/CEO to enact the following conservation measures may in addition to the permanent water conservation measures and conservation measures implemented in Stage No. 1, 2, 3, and 4. 15.06.01 Decorative Water Features - Filling or adding potable water to decorative water features is prohibited except to sustain biological life. 15.06.02 Landscape Irrigation - Upon direction of the General Manager/CEO, all potable irrigation of turf is prohibited unless stated otherwise. These limitations do not apply to drought-tolerant landscapes, including trees and shrubs. 15.06.03 Construction Water – Upon direction of the General Manager/CEO, the use of potable water for construction site preparation purposes may be prohibited, other than to maintain necessary fire and safety standards. 15.06.04 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 determination by the General Manager/CEO, these persons may be required to prepare a plan within 30 days of request by the District describing their irrigation practices and equipment, including but not limited to, actions to be taken to improve water use efficiency or justification that water use on the property is the most efficient possible. The District will provide these facilities with information regarding the average monthly water use by the facility for the last two-year period and a free water use evaluation will be provided upon request. After review and approval by the General Manager/CEO, the plan shall be considered subject to inspection and enforcement by the District. 15.07 Stage No. 6 – Water Shortage Emergency - A Water Shortage Stage 6 –Water Shortage Emergency shall be in effect when the District determines there is a water shortage supply, or threatened water shortage, condition of over 50%, or if directed by an executive order or regulation. The Board of Directors may then, by resolution, declare a water shortage condition to prevail, and authorize the General Manager/CEO to enact the following conservation measures in addition to the permanent water conservation measures and conservation measures implemented in Stage No. 1, 2, 3, 4, and 5. 15.07.01 Non-recirculating Water Systems - Operation of non-recirculating systems at car washes and commercial laundry facilities are prohibited. Ordinance 406 33 15.07.02 Landscape Irrigation - Upon direction of the General Manager/CEO, all potable landscape irrigation is prohibited. 15.07.03 Construction Meters - No new construction meter permits shall be issued by the District. All existing construction meters shall be removed and/or locked, with the exception of critical infrastructure projects. 15.07.04 Parks, Schools, and Golf Courses - Upon direction of the General Manager/CEO, watering of parks, school grounds and golf courses is prohibited. 15.07.05 Commercial Nurseries and Livestock - Commercial nurseries shall discontinue all watering and irrigation to permanent crops that take >5 years to replace. Watering of livestock is permitted as necessary. 15.08 Implementation and Termination of Mandatory Compliance Stages - The General Manager/CEO of the District shall monitor the supply and demand for water on a regular basis to determine the level of conservation required by the implementation or termination of the Water Shortage Stages and shall notify the Board of Directors of the necessity for the implementation, or termination, of each stage. In the event of a water shortage condition or threatened water shortage which could affect the District's ability to provide water for ordinary domestic and commercial uses, the Board of Directors shall provide public notice and hold a public hearing at which customers shall have the opportunity to present their respective needs to the District. Each declaration of the Board of Directors implementing, or terminating, a water conservation stage shall be declared via resolution and 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 via resolution, as provided herein. 15.08.01 General Manager/CEO Emergency Authority – The Board of Directors authorizes the General Manager/CEO 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. 15.09 Exceptions - Application for Exception Permits - The General Manager/CEO may grant permits for uses of water otherwise prohibited under the provisions of this Ordinance if they find and determine that restrictions herein would either: 15.09.01 Hardship - Cause an unnecessary and undue hardship to the water user or the public; or 15.09.02 Emergency – Cause an emergency condition affecting the health, sanitation, fire protection or safety of the water use or of the public. 15.09.03 Exceptions Granted - Such exceptions may be granted only upon written request therefor. Upon granting such exception permit, the General Manager/CEO may impose any conditions they determine to be just and proper. 15.09.04 Enforcement and Inspection - Authorized employees of the District, after providing 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 right-of-ways. Ordinance 406 34 15.10 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. 15.11 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 below. Appeals for violation penalties may be granted as outlined in Section 15.13.01 of this Ordinance. 15.11.01 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 15.12 below. 15.11.02 Second Violation: $100 Surcharge - For a second violation of this Ordinance within a 12-month period, or failure to comply with the notice of violation within thirty (30) days after notice of imposition, a one-month penalty surcharge of $100 is hereby imposed for the meter through which the wasted water was supplied. 15.11.03 Third Violation: $300 Surcharge - For a third violation of this ordinance within a 12- month period, or for continued failure to comply within thirty (30) days after notice of an imposition of second violation sanctions, a one-month penalty surcharge in the amount of $300 is hereby imposed for the meter through which the wasted water was supplied. 15.11.04 Fourth Violation: $500 Surcharge - For a fourth violation of this ordinance within a 12- month period, or for continued failure to comply within thirty (30) days after notice of an imposition of third violation sanctions, a one-month penalty surcharge in the amount of $500 is hereby imposed for the meter through which the wasted water was supplied. 15.11.05 Fifth Violation: $500 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 thirty (30) days after notice of an imposition of fourth violation sanctions, a one-month penalty surcharge in the amount of $500. 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. The charge for removal of the flow- restricting device and restoration of normal service shall be based on the actual cost of removal. Such restoration of service shall not be made until the General Manager/CEO of the District has determined that the water user has provided reasonable assurances that future violations of this Ordinance by such user will not occur. 15.11.06 Subsequent Violations: Discontinuance of Service - For any subsequent violation of this Ordinance, while in Stage No. 6, within the twenty-four (24) calendar months after a first violation as provided in Section 15.11.01 hereof, the penalty surcharge provided in Section 15.11.02 through Section 15.11.05 hereof shall be imposed and the District may discontinue water service to that customer at the premises or to the meter where 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 Ordinance 406 35 be made until the General Manager / CEO 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. 15.12 Notice of Violation 15.12.01 First Violation - For a first violation, written notice shall be given to the customer and/or property owner personally or by regular mail. 15.12.02 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. 15.12.03 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. 15.12.04 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. 15.13 Community Advisory Commission - The District may establish a Community Advisory Commission (Commission) consisting of District customers appointed by the Board of Directors to serve in the capacity as herein described. The number of commissioners shall be determined by resolution of the Board of Directors. The Commission is authorized to hear appeals from enforcement decisions made by the General Manager/CEO 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. 15.13.01 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/CEO, with the right to appeal to the Commission. Within fifteen (15) days of the date of the alleged violation, the Appellant may submit a written request for a hearing to the District Clerk. The hearing shall be conducted by the General Manager/CEO within thirty (30) days from the date of the written request submitted to the District Clerk. The General Manager/CEO shall issue their ruling in writing. The Appellant may appeal the Ordinance 406 36 ruling of the General Manager/CEO within ten (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 their 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. Ordinance 406 37 SECTION 16. EFFECTIVE DATE This Ordinance shall take effect and replace Ordinance No. 403 upon adoption. Adopted this 13th day of November 2024. ROLL CALL: Ayes: Directors: Noes: Absent: Abstain: James Morales, Jr. Board President ATTEST: Michael Moore Secretary, Board of Directors November 13, 2024 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Ordinance No. 406 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held November 13, 2024. Michael Moore Secretary, Board of Directors Agenda Item #4d November 13, 20241 Meeting Date: November 13, 2024 Agenda Item #4d Public Hearing 1 2 4 3 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Adoption of Ordinance 407 - Updating East Valley Water District Regulations for Sewer Service, Public Hearing RECOMMENDATION That the Board of Directors adopt Ordinance 407 - Updating East Valley Water District Sewer Regulations for Sewer Service. BACKGROUND / ANALYSIS Revisions to the District’s water regulations ordinance were necessary to incorporate changes in the billing methodology for commercial customers adopted at the Prop. 218 hearing conducted in May of this year. Since a public hearing would be required to adopt changes to the water ordinance, staff took the opportunity to review the sewer regulations ordinance for any necessary revisions that could be addressed at the same public hearing. A few proposed changes, primarily minor corrections, were identified and are shown as changes in the attached mark-up of Ordinance 407. The most noteworthy of the proposed changes to Ordinance 407 include: •Add Classifications V and VI to the table of permit classifications for Industrial wastewater dischargers. The Reclamation Manager presented six classifications to the Board in his presentation at a hearing on May 24, 2023 presentation, but only four were included in the ordinance. This has been corrected. •A description of the calculation of capacity fees to be paid for Accessory Dwelling Units (ADUs) when they do not meet the State of California’s criteria for exemption. The noticing requirements for changes to the sewer regulations ordinance were met by creating a combined water/sewer notice. The notices about this evening’s hearing have been posted in a locally circulated newspaper both 14 days and 7 days before the hearing. In addition, updates to Ordinance 407 have been made available for public inspection, 10 days prior to the hearing. Agenda Item #4d November 13, 20242 Meeting Date: November 13, 2024 Agenda Item #4d Public Hearing 1 2 4 3 AGENCY GOALS AND OBJECTIVES IV - Promote Planning, Maintenance and Preservation of District Resources B. Enhance Planning Efforts that Respond to Future Demands C. Dedicate Efforts Toward System Maintenance and Modernization REVIEW BY OTHERS This agenda item has been reviewed by the Customer Service and Finance Departments. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS EVWD Ord 407 - Sewer Regulations Ordinance 407 1 ORDINANCE NO. 407 AN ORDINANCE OF THE EAST VALLEY WATER DISTRICT RESCINDING ORDINANCE 404 ENTITLED “AN ORDINANCE REGULATING THE USE OF PUBLIC SEWERS, THE INSTALLATION AND CONNECTION OF BUILDING AND LATERAL SEWERS, PUBLIC SEWER MAIN EXTENSIONS, ESTABLISHING A SEWER DEPARTMENT, PROVIDING PERMITS FOR THE INSTALLATION AND CONNECTION OF SANITARY SEWERS, PROVIDING SEWERS FOR ANNEXED AREAS AND SUBDIVISIONS, REGULATING THE DISCHARGE OF WATERS AND WASTES INTO THE PUBLIC SEWER SYSTEM, PROVIDING RELIEF FOR THE VIOLATION OF THE PROVISIONS THEREOF AND PROVIDING PROCEDURES FOR ENFORCEMENT”. Be it ordained by the Board of Directors of the East Valley Water District, as follows, that Ordinance No. 404 is hereby rescinded, and this Ordinance 407 is enacted as follows: SECTION 1. INDEX Section 1 Index 1 Section 2 General Provisions 2 Section 3 Definitions 4 Section 4 Sewer Department 13 Section 5 General Rules 13 Section 6 Required Use of Public Sewers 15 Section 7 Use of Public Sewers 17 Section 8 Application for Sewer Service 18 Section 9 General and Specific Prohibitions 22 Section 10 Specific Pollutant Limitations 25 Section 11 Industrial Wastewater Discharge Permits 29 Section 12 Pretreatment Facility Requirements 33 Section 13 Record Keeping and Reporting Requirements 41 Section 14 Inspection 45 Section 15 Enforcement 45 Section 16 Miscellaneous Provisions 46 Section 17 Customer Billing Procedures 47 Section 18 Complaints and Disputed Bills 48 Section 19 Disconnection for Non-Payment 49 Section 20 Adding Delinquent Charges to Tax Roll 50 Section 21 Charges and Deposits 50 Section 22 Effective Date 52 Ordinance 407 2 SECTION 2. GENERAL PROVISIONS 2.01 Short Title - This Ordinance may be cited as "East Valley Water District Sewer Regulations and Service Charge Ordinance". 2.02 Purpose - This Ordinance is intended to provide rules and regulations for the construction, repair and use of District sewerage facilities, to establish the rates and charges for such facilities and provide for their enforcement by providing penalties for the introduction of pollutant into the District’s publicly owned treatment works (POTW) that will pass through the POTW, inadequately treated, into groundwaters, atmosphere, or otherwise be incompatible with the system, resulting in adverse operations and/or violations of the Districts Permits. Specific pollutants and pretreatment considerations include addressing:  Fats, oils, and grease (FOG) in quantities that contribute to or cause sanitary sewer overflows (SSOs) through the development and implementation of a FOG Pretreatment Program.  Mercury-containing amalgams through the implementation of best management practices (BMPs) for amalgam separators.  General BMPs for reducing the amount of pollutants entering the District’s sewer system. The District shall seek the cooperation of the users of the collection system to ensure compliance with this Ordinance. Reasonable approaches shall be utilized to correct non-compliance when applying applicable regulations without compromising the intent, purpose and policies of this Ordinance; The District shall implement its most recent approved Sewer System Management Plan, to control and reduce the occurrence and impact of SSOs. The District shall adopt more stringent quality requirements on wastewater discharges regulated by 40 CFR, Chapter I, Subchapter N, Parts 405-471, if more stringent quality requirements are necessary to protect beneficial use of reclaimed water and municipal sludge or to meet other waste discharge requirements and/or Waste Discharge Requirements Limits. The District shall encourage conservation and pollution prevention through source control strategies, which reduce the amount of pollutants entering the environment, prior to recycling, pretreatment, or disposal. The District shall use the revenues derived from the application of this Ordinance to defray the cost of regulating sewer usage to include, but not be limited to, administration, monitoring, permitting, reporting, and enforcement. All fees associated with the implementation of this Ordinance and provisions of the Pretreatment Program shall be in amounts adopted by Resolution of the District’s Board of Directors, and any amendments thereto; The District shall adopt an Enforcement Response Plan (ERP) that utilizes progressive responses that escalate the level of enforcement for chronic and more severe violations of this Ordinance. The enforcement remedies provided in Section 15 herein represent the types of enforcement actions that may be taken in response to violations. A Resolution of the District’s Board shall be used to adopt the ERP; and Except as otherwise provided, the District’s General Manager, or his designee, shall administer, implement and enforce the provisions of this Ordinance. Any powers granted to, or imposed upon, the General Manager may be delegated by the General Manager to other persons or authorized agents acting in beneficial interest of or in the employ of the District. 2.03 Enabling Statutes - This Ordinance is adopted pursuant to the Article 2, Chapter 6, Part 1, Division 2, Title 5 of the Government Code and pursuant to Division 12 of the Water Code and pursuant to Article 4, chapter Ordinance 407 3 6, Part 3, Division 5 of the Health and Safety Code, California Government Code, Sections 54739-54740, et seq., The Clean Water Act (33 USC §§ et seq.) and the General Pretreatment Regulations (40 CFR 403). All permits and plans will be prepared pursuant to Section 13263.3 of the Water Code. The District’s authority includes, but is not limited to, the right to establish limitations, conditions, and prohibitions; to establish flow rates or prohibit flows discharged to the District sewerage facilities; to require the development of compliance schedules for the installation of equipment, systems, and materials by all users; and to take all actions necessary to enforce its authority, whether within or outside the District boundaries, including those users that are tributary to the District or within areas which the District has been contracted to provide sewerage services. To achieve these objectives, this Ordinance provides for regulation through issuance of Wastewater Discharge Permits to Industrial Users; authorizes inspection, monitoring and enforcement activities; provides for User reporting; and provides for the setting of fees for the equitable distribution of costs for implementing the various provisions of this Ordinance. 2.04 Application - This Ordinance shall apply to all sewer facilities constructed, maintained, and operated by the District. 2.05 Enterprise - District will furnish and/or make available, a system, plant, works, and undertaking used for and useful in, the collection, treatment and disposal of sanitary sewage and industrial waste for the District's service area, including all annexations thereto, and lands, easements, rights in land, contract rights, and franchise. 2.06 Separability - If any section, subsection, sentence, clause, or phrase of this Ordinance or the application thereof to any person or circumstances are for any reason held to be unconstitutional or invalid by a court of competent 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, subsection, sentence, clause, or phrase hereof irrespective of the fact that any one or more section, sub-section, 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 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. Ordinance 407 4 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 this Ordinance or other provisions of law applicable to the subject matter concerned. 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 Additional Definitions - For the purposes of this Ordinance, the following words and phrases are defined and shall be construed as hereinafter set out unless it shall be apparent from the context that they have a different meaning. Terms related to water quality shall be as adopted in the latest edition of Standard Methods for the Examination of Water and Wastewater, published by the American Public Health Association, the American Water Works Association, and the Water Environment Federation. The testing procedures for waste constituents and characteristics shall be as provided in 40 CFR 136 (Code of Federal Regulations; Title 40; Protection of Environment; Chapter I, Environmental Protection Agency; Part 136, Test Procedures for the Analyses of Pollutants), or as specified. Other terms used in this Ordinance shall be as defined in the latest edition of the International Association of Plumbing and Mechanical Officials, Uniform Plumbing Code or the International Conference of Building Officials, Uniform Building Code, except as specifically modified herein, or if inconsistent with the definitions contained herein or with the context thereof, or omitted there from, the following definitions shall prevail. Words used in this Ordinance in the singular may include the plural and the plural the singular. Use of masculine shall mean feminine and use of feminine shall mean masculine. 3.02 Amalgam Process Wastewater - Shall mean any wastewater generated and discharged by a dental discharger through the practice of dentistry that may contain amalgam. 3.03 Amalgam Separator - Shall mean a collection device designed to capture and remove dental amalgam from the amalgam process wastewater of a dental facility. 3.04 Applicant - Shall mean 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. 3.05 Approved Analytical Methods - Shall mean the sampling referred to in 40 CFR Part 403, Appendix E and analysis of these samples performed in accordance with the techniques prescribed in 40 CFR Part 136 and 40 CFR 403.12(g) and amendments thereto. Where 40 CFR Part 136 does not contain sampling or analytical techniques for the pollutant in question, or where the U.S. Environmental Protection Agency (EPA) determines that the Part 136 sampling and analytical techniques are inappropriate for the pollutant in question, sampling and analysis shall be performed using other applicable sampling and analytical procedures approved by the District and the EPA. 3.06 Authorized Representative of Industrial User - Shall mean: a. A responsible corporate officer, if the User submitting required reports is a corporation, of the level of president, secretary, treasurer, or vice president in charge of a principal business function, or any other person, if the authority to sign documents has been assigned or delegated in accordance with corporate procedures; b. A general partner or proprietor if the User submitting the required reports is a partnership or sole Ordinance 407 5 proprietorship respectively; c. The responsible person in charge, if the User is a governmental agency; d. An individual with the same authority as stated in a, b, and c if the individual is responsible for the overall operation of the facility from which the discharge originates and such authorization is confirmed in writing to the General Manager or designee by the individual described in a, b, and c. If authorization under item a of this section is no longer accurate because a different individual or position has responsibility for the overall operation of the facility, or overall responsibility for environmental matters for the company, a new authorization satisfying the requirements of item d of this definition must be submitted to the District prior to or together with any reports to be signed by an authorized representative. 3.07 Bathroom - Shall mean a room containing a toilet. 3.08 Best Management Practices (BMPs) - Shall mean the schedule of activities, prohibition of practices, maintenance procedures, and other management practices to prevent or reduce SSOs and the introduction of FOG to the sewer system and those which implement the prohibitions listed in 40 CFR 403.5 (a) (1) and (b). BMPs also include treatment requirements, operating procedures, and practices to control site runoff, spillage or leaks, sludge or waste disposal, or drainage of raw materials storage. 3.09 Biochemical Oxygen Demand (BOD) - Shall mean the quantity of dissolved oxygen required to biochemically oxidize the organic matter in a wastewater sample in five (5) days at 20°C expressed in terms of milligrams per liter (mg/l) and analyzed in accordance with Approved Analytical Methods. 3.10 Board - Shall mean the Board of Directors of the East Valley Water District. 3.11 Building - Shall mean any structure used for human habitation or a place of business, recreation, or other purpose. 3.12 Building Sewer - Shall mean that portion of any sewer beginning at the plumbing or drainage outlet of any building, industrial facility, or preliminary treatment facility, and running to the property line. 3.13 Categorical Industrial User - Shall mean an Industrial User who is subject to Categorical Standards. 3.14 Categorical Standards - Shall mean the Federal Categorical Pretreatment Standards specifying quantities or concentrations of pollutants or pollutant properties which may be discharged or introduced into the POTW by existing or new Industrial Users in specific industrial categories established as separate regulations under the appropriate subpart of 40 CFR Chapter I, Subchapter N, Parts 405-471, and as it may be amended. 3.15 Class I User - Shall mean an Industrial User subject to Categorical Pretreatment Standards under 40 CFR 403.6 and 40 CFR Chapter I, Sub-chapter N; or an Industrial User classified as a Significant Industrial User as specified in 40 CFR 403.3(t)(ii). 3.16 Class II User - Shall mean a Non-Significant Categorical Industrial User with an average discharge between ten thousand (10,000) and twenty-four thousand nine hundred ninety-nine (24,999) gallons per day of industrial wastewater to the POTW. 3.17 Class III User - Shall mean a Non-Significant Industrial User with an average discharge between one (1) and nine thousand nine hundred ninety-nine (9,999) gallons per day of industrial wastewater to the POTW and pretreatment is required to reduce the potential for adversely affecting the operation of the POTW or violating any pretreatment standard, prohibition, or requirement of Section 9. Ordinance 407 6 3.18 Class IV User - Shall mean a Temporary Industrial User that has a temporary need, less than 180 days, to discharge wastewater to the POTW. 3.19 Class V User - Shall mean an Industrial User that performs operations regulated by Federal Categorical Standards with no industrial wastewater discharged to the POTW from the Categorical process(es) (Dry Categorical). 3.20 Class VI User - Shall mean a discharger of trucked or hauled wastewater to the POTW Treatment Plant. 3.21 Collection System - Shall mean all pipes, sewers and conveyance systems carrying wastewater to the Water Reclamation Plant, owned and maintained by the District and/or by tributary Service Areas contracting with the District for sewer service, excluding lateral line connections. 3.22 Commercial - Shall be any discharge not covered by the residential description. This shall include, but not limited to, schools, stores and businesses and others not covered by the residential description. 3.23 Composite Sample - Shall mean a collection of individual samples obtained at selected time or flow-based increments from a wastewater discharge. A composite sample may be collected using automatic continuous or discrete sampling equipment, or by manually collecting a minimum of four grab samples. Where specified by the General Manager, composite samples shall be collected in a manner that is proportional to the flow rate of the discharge. 3.24 Contractor - Shall mean an individual, firm, corporation, partnership, or association duly licensed by the State of California to perform the type of work to be done under the permit. 3.25 Conventional Pollutant - Shall mean any pollutant or combination of pollutants listed as conventional in 40 CFR 401.16. 3.26 County - Shall mean the County of San Bernardino, California. 3.27 Customer - Any person (as defined) supplied with or entitled to be supplied with sewer service by the District. 3.28 Dental Discharger - Shall mean a facility where the practice of dentistry is performed, including, but not limited to, institutions, permanent or temporary offices, clinics, home offices, and facilities owned and operated by Federal, state or local governments, that discharges wastewater to a POTW. 3.29 Dilution - Shall mean the increase in use of water, wastewater, or any other means to dilute a Waste stream as a partial or complete substitute for adequate treatment to achieve discharge requirements. 3.30 Discharger - Shall mean any person who causes or contributes a discharge into the POTW as defined in 40 CFR 403.3(i). 3.31 District - Shall mean the East Valley Water District, San Bernardino County, California. 3.32 Director of Engineering and Operations - Shall be a Registered Civil Engineer of the State of California. 3.33 Dwelling Unit – Shall mean any residence, apartment, habitation, or other structure designed to be occupied by a person or family and requiring sewage disposal service. 3.34 Electrical Conductivity - Shall mean the ability of an aqueous solution to carry an electrical current, expressed in terms of micromhos per centimeter (µmhos/cm) at 25°C, and analyzed in accordance with Approved Analytical Methods. 3.35 Engineering Services - Engineering services provided by the District includes technical and procedural guidance, professional consultant services, project coordination, and plan checking. Ordinance 407 7 3.36 Equivalent Dwelling Unit (EDU) - Shall mean the standard measurement of flow based upon the average single-family residence. 3.37 Exchange-Type Water Conditioning Device - Shall mean a water conditioning device that is removed to a commercial regeneration facility for regeneration from the premises at which it is normally operated. 3.38 Fats, Oils, And Grease (FOG) - Shall mean fats, oils, and grease. Any substance such as a vegetable oil or animal product that is in, or is a byproduct of, cooking or food preparation processes, and that turns or may turn viscous or solidifies with a change in temperature or other condition is included in this definition. 3.39 Financial Officer - Shall be the Treasurer appointed by the Board of Directors. 3.40 Fixture - Shall mean any sink, tub, shower, water closet or other facility connected by drain to the sewer. 3.41 Food Service Establishment (FSE) - Shall mean any commercial, industrial, institutional, or food processing facility discharging kitchen or food preparation wastewaters including, but not limited to, restaurants, commercial kitchens, caterers, motels, hotels, cafeterias, correctional facilities, prisons or jails, cafeterias, care institutions, hospitals, schools, bars, churches, commissaries, and mobile food units. Any establishment engaged in preparing, serving or otherwise making food available for consumption by the public shall be included. Such establishments use one or more of the following preparation activities: cooking by frying (all methods), baking (all methods), grilling, sautéing, rotisserie cooking, broiling, boiling, blanching, roasting, toasting, or poaching. Also included are infrared heating, searing, barbequing, and other food preparation activity that produces a hot, non-drinkable food product in or on a receptacle that requires washing. 3.42 Garbage - Shall mean solid wastes from the preparation, cooking, dispensing of food and from the handling, storage, and sale of produce. 3.43 General Manager - Shall mean the General Manager/Chief Executive Officer of the District. 3.44 Governing Body - Shall mean the Board of Directors of the East Valley Water District. 3.45 Grab Sample - Shall mean a sample which is collected from a wastewater discharge over a period of time not exceeding fifteen (15) minutes. 3.46 Gravity Grease Interceptor (GGI) - Shall mean a plumbing appurtenance or appliance that is installed in a sanitary drainage system to intercept non-petroleum fats, oils, and grease (FOG) from a wastewater discharge and is identified by volume, baffle(s), not less than two compartments, and gravity separation. Gravity grease interceptors are installed outdoors. Approved designs shall be certified to the nationally recognized product standard IAPMO / ANSI Z1001 in accordance with the California Plumbing Code. 3.47 Grease Control Device (GCD) - Shall mean a device designed to remove FOG from wastewater discharges which include gravity grease interceptors, grease removal devices, and hydromechanical grease interceptors. 3.48 Grease Removal Device (GRD) - Shall mean a hydromechanical grease interceptor that automatically, mechanically removes non-petroleum FOG from the interceptor, the control of which are automatically initiated. Approved designs shall be certified to one of the nationally recognized product standards ASME A112.14.4 or CSA B481.5 in accordance with the California Plumbing Code. 3.49 Hydromechanical Grease Interceptor (HGI) - Shall mean a plumbing appurtenance or appliance that is installed in a sanitary drainage system to intercept nonpetroleum FOG from a wastewater discharge and is identified by flow rate, and separation and retention efficiency. Typical designs incorporate air entrainment, hydromechanical separation, interior baffling, and/or barriers in combination or separately, and one of the Ordinance 407 8 following: a. External flow control, with air intake (vent): directly connected. b. External flow control, without air intake (vent): directly connected. c. Without external flow control, directly connected. d. Without external flow control, indirectly connected. Approved designs shall be certified to one the nationally recognized product standards ASME A112.14.3, CSA B481.1, or PDI G101 in accordance with the California Plumbing Code. 3.50 Inspector - Shall mean the person who shall perform the work of inspecting sewerage facilities under the jurisdiction or control of the District. 3.51 Individual Sewage Disposal System - Shall mean a septic tank and on-site disposal system designed for a building to dispose of wastewater generated on the property. 3.52 Hazardous Substance (Hazardous Material) - Shall mean any substance which is toxic, explosive, corrosive, flammable or an irritant, or which generates pressure through heat or decomposition including, but not limited to, any substance determined to be a toxic or hazardous substance pursuant to Section 307 and 311(b)(2) of the Clean Water Act, 33 USC, Section 1251, et. seq., or its implementing regulations at 40 CFR Section 307 and 311 or any substance classified as a hazardous substance pursuant to California Water Code Section 13050(p) and any imminently hazardous chemical substance subject to regulation under the Toxic Mixtures or Substances Control Act, 15 USC, Section 2601, et seq. 3.53 Hazardous Waste - Shall mean any hazardous substance that is either the resultant and/or intermediate or final by-product of any process. 3.54 Industrial User (IU) - Shall mean any User, whether permitted or not, who discharges nondomestic wastewater into the POTW. Households and Private residences shall not be considered as Industrial Users. 3.55 Industrial Wastewater - Shall mean all liquid or water borne waste from industrial or commercial processes of whatever nature, except domestic sewage. 3.56 Interference - Shall mean a discharge which alone or in conjunction with discharge(s) from other sources, both: Inhibits or disrupts the POTW, its treatment processes or operations, or its sludge processes, use or disposal; and causes a violation of any requirement of the POTW's Waste Discharge Requirements permit (including an increase in the magnitude or duration of a violation) or of the prevention of sewage sludge use or disposal in compliance with the use or disposal in compliance with the following statutory provisions and regulations or permits issued there under (or more stringent State or local regulations): Section 405 of the Clean Water Act, the Solid Waste Disposal Act (SWDA) (including Title II, more commonly referred to as the Resource Conservation and Recovery Act, and including State regulations contained in any State sludge management plan prepared pursuant to Subtitle D of the SWDA), the Clean Air Act, the Toxic Substances Control Act, and the Marine Protection, Research and Sanctuaries Act. 3.57 Lateral Sewer Connection - Shall mean the pipes and appurtenance necessary to convey wastewater from a customer’s building to the District’s main sewer located within public right-of-way or easement. 3.58 Main Sewer - Shall mean publicly owned sewage collection and conveyance facilities designed to transport wastewater away from customer parcels to water reclamation facilities. 3.59 Manager of Water Reclamation – The Manager, or his authorized Representative, or any District officer who subsequently is empowered to assume or succeed to the duties of the Manager of the Publicly owned treatment works. Ordinance 407 9 3.60 Mass Emission Rate - Shall mean the mass of material discharged to the POTW during a given time interval. Unless otherwise specified, the mass emission rate shall be expressed in pounds per day of a particular constituent or a combination of constituents. 3.61 National Prohibitive Discharge Standard or Prohibitive Discharge Standard - Shall mean any regulation developed under the authority of Section 307(b) of the Act and 40 CFR 403.5. 3.62 Nondomestic Wastewater - Shall mean all wastewater except domestic wastewater and unpolluted water as defined herein. Nondomestic wastewater shall include, but not be limited to, wastewater resulting from industrial, commercial, producing, manufacturing, processing, institutional, governmental, and agricultural operations, and brine wastewater resulting from the regeneration of water conditioning devices. All liquid wastewater hauled by truck, rail, or another means shall also be considered as nondomestic wastewater, regardless of the original source of the wastes. Hauled domestic wastewater is included in the category of nondomestic wastewater. 3.63 Nondomestic Wastewater Discharge Permit - Shall mean the regulatory procedure established and enforced by the General Manager, to control the flow and quality of wastes discharged into the POTW. 3.64 Non-Significant Categorical Industrial User - Shall mean an Industrial User who would be subject to categorical pretreatment standards under 40 CFR 403.6 and 40 CFR chapter I, subchapter N but discharges less than 100 gallons per day of total categorical wastewater and meets other required conditions as contained in 40 CFR 403.3(v)(2) and (v)(3). 3.65 Non-Significant Industrial User - Shall mean any Industrial User which is not a Significant Industrial User. 3.66 Oil/Sand Separator - Shall mean a trap, interceptor, or other device designed, constructed, and intended to remove, hold, or otherwise prevent the passage of petroleum products, sand, sediment, sludge, grease, or similar substances in the wastewater discharged to the sanitary sewer. 3.67 Pass-Through - Shall mean any discharge which passes through the POTW into waters of the State in quantities or concentrations which, alone or in conjunction with other discharges, causes a violation of any requirement of the POTW's Waste Discharge Requirements permit (including an increase in the magnitude or duration of a violation). 3.68 Permit - Shall mean any written authorization required pursuant to this or any other regulation of the District. 3.69 Permittee - Shall mean any User who is issued a Nondomestic Wastewater Discharge Permit pursuant to Section 10 herein. 3.70 Person - Shall mean any human being, individual, firm, company, partnership, association and private or public or municipal corporation, the United States of America, the State of California, a district and any political subdivision or governmental agency. 3.71 Pollutant - Shall mean any dredged spoil, solid waste, incinerator residue, sewage, garbage, sewage sludge, munitions, chemical wastes, biological materials, radioactive materials, heat, wrecked or discharged equipment, rock, sand, cellar dirt, and industrial, municipal, and agricultural waste discharged into water. 3.72 POTW Treatment Plant - Shall mean the Sterling Natural Resource Center (SNRC), which is the portion of the POTW designed to provide treatment to wastewater. 3.73 Premises - Shall mean 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 Ordinance 407 10 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. 3.74 Pretreatment or Treatment - Shall mean the reduction of the amount of pollutants, elimination of pollutants, or the alteration of the nature of pollutant properties in wastewater to a less harmful state prior to or in lieu of discharging or otherwise introducing such pollutants into the POTW. The reduction or alteration may be obtained by physical, chemical, or biological processes, process changes, or other means, except as prohibited by 40 CFR 403.6 (d). 3.75 Pretreatment Requirement - Shall mean any substantive or procedural requirement related to pretreatment, other than a Pretreatment Standard, imposed by an Industrial User. 3.76 Pretreatment Standard - Shall mean any regulation containing pollutant discharge limits or prohibitions promulgated by EPA or the District, applicable to Industrial Users, including promulgated Categorical Standards, National Prohibitive Discharge Standards, General Discharge Prohibitions contained in Section 9.02 and 9.03 herein, and specific local discharge limitations contained in or pursuant to Section 10 herein. 3.77 Pretreatment Wastes - Shall mean all wastes, liquid or solid, removed from nondomestic wastewater by physical, chemical, or biological means. 3.78 Publicly Owned Treatment Works (POTW) - Shall mean the District’s treatment works. This definition includes any devices or systems owned and operated by the District, which are used in the storage, treatment, recycling and reclamation of municipal sewage (i.e., the Sterling Natural Resource Center). It also includes the District's Interceptors, Tributary Sewerage Systems, and any other sewers, pipes, lift stations, and other conveyances which convey wastewater to the wastewater treatment facilities. 3.79 Public Sewer - Shall mean a sewer lying within a public right-of-way or easement which is controlled by or under, the jurisdiction of the District. 3.80 Regulatory Agencies - Shall mean those public agencies legally constituted in the State of California to protect the public health and water quality, such as the U.S. Environmental Protection Agency, the California Environmental Protection Agency, the California Department of Health Services, the State Water Resources Control Board, the California Regional Water Quality Control Board, Santa Ana Region, and the County Department of Environmental Health Services. 3.81 Residential - Any service with a building that serves as a single-family home, duplex or triplex, apartments, co-operatives, or townhouses. 3.82 Responsible Corporate Officer - Shall mean: a president, secretary, treasurer, or vice president of the corporation in charge of a principal business function, or any other person who performs similar policy - or decision-making functions for the corporation, or the manager of one or more manufacturing, production, or operating facilities, provided, the manager is authorized to make management decisions which govern the operation of the regulated facility including having the explicit or implicit duty of making major capital investment recommendations, and initiate and direct other comprehensive measures to assure long-term environmental compliance with environmental laws and regulations; can ensure that the necessary systems are established or actions taken to gather complete and accurate information for control mechanism requirements; and where authority to sign documents has been assigned or delegated to the manager in accordance with corporate procedures. 3.83 Sample Location - Shall mean a location approved by the General Manager where a representative sample of non-domestic wastewater is collected from an industrial user. 3.84 Sanitary Sewer - Shall mean a sewer which carries sewage and to which storm, surface and ground waters Ordinance 407 11 are not intentionally admitted. 3.85 Sanitary Sewer Overflow (SSO) - Shall mean any overflow, spill, release, discharge or diversion of untreated or partially treated wastewater from a sanitary sewer system. SSOs include: 1) Overflows or releases of untreated or partially treated wastewater that reaches waters of the United States; 2) Overflows or releases of untreated or partially treated wastewater that does not reach waters of the United States; and 3) Wastewater backups into buildings and on private property that are caused by blockages or flow conditions within the publicly owned portion of the sanitary sewer system. 3.86 Secretary - Shall be the Secretary to the Governing Body. 3.87 Separate Sewer Connection - A sewer connection shall not be used by any adjoining property or property across the street, alley, or easement. Each sewer lateral shall serve only one property or individual parcel. 3.88 Sewage - Shall mean refuse liquids or a combination of water-carried wastes from residences, business buildings, public buildings, institutions, and industrial establishments. 3.89 Sewer - Shall mean a pipe or conduit for carrying sewage. 3.90 Sewer System Management Plan (SSMP) - Shall mean an approved plan adopted by the District’s Board of Directors to control and reduce the occurrence and impact of sanitary sewer overflows. 3.91 Side Sewer - Shall mean the sewer line beginning three feet outside the foundation wall of any building and terminating at the main sewer and include the building sewer and lateral sewer together. 3.92 Significant Industrial User (SIU) - Shall mean any Industrial User of the POTW who: 1) is subject to Categorical Standards; 2) has an average daily discharge of 25,000 gallons or more of process wastewater; 3) has a discharge which makes up five percent (5%) or more of the average dry-weather hydraulic or organic capacity of the Wastewater Treatment Facilities receiving the wastewater; or 4) is designated by the General Manager to have a reasonable potential for adversely affecting the POTW’s operation or violating any applicable pretreatment standard or requirement. 3.93 Significant Noncompliance (SNC) - Shall mean any Significant Industrial User violation(s), which meet any of the criteria below, or any Industrial User violation that violates numbers 3., 4., or 8. below. 1. Chronic violations of wastewater discharge limits, defined here as those in which sixty-six percent (66%) or more of all the measurements for each pollutant taken during a consecutive six-month period exceed (by any magnitude) a numeric pretreatment standard or requirement including instantaneous limits; 2. Technical review criteria violations, defined as those in which thirty-three percent or more of all of the measurements taken for the same pollutant during a consecutive six-month period equal or exceed the product of the numeric pretreatment standard or requirement including instantaneous limits, multiplied by the applicable TRC (TRC=1.4 for BOD, TSS, fats, oil and grease, and 1.2 for all other pollutants except pH); 3. Any other violation of a Pretreatment effluent limit (daily maximum or long-term average, instantaneous limit or narrative standard) that the District determines has caused, alone or in combination with other discharges, Interference or Pass Through (including endangering the health of POTW or District personnel or the general public); 4. Any discharge of a pollutant that has caused imminent endangerment to human health, welfare or to the environment or has resulted in the District's exercise of its emergency authority to halt or prevent such a discharge; Ordinance 407 12 5. Failure to meet, within ninety (90) days after the scheduled date, a compliance schedule milestone contained in a local control mechanism or enforcement order, for starting construction, completing construction, or attaining final compliance; 6. Failure to provide, within forty-five (45) days of the due date, any required reports such as baseline monitoring reports, 90-day compliance reports, periodic self- monitoring reports, and reports on compliance with compliance schedules; 7. Failure to report accurately non-compliance; or 8. Any other violations or group of violations, which may include a violation of Best Management Practices, which the District believes will adversely affect the operation and implementation of the District’s pretreatment program or the District’s Sewer System. 3.94 Slug Discharge - Shall mean any discharge to the sanitary sewer of a non-routine, episodic nature, including but not limited to an accidental spill or a non-customary batch discharge. 3.95 Slug Discharge Control Plan - Shall mean a plan submitted to the District by a User which specifies to the General Manager's satisfaction the potential pollutants used and/or stored at the User's facility; potential pathways of entry of said potential pollutants into the POTW; and facilities and procedures for preventing or controlling the occurrence of slug loading. 3.96 Slug Loading - Shall mean the discharge of any pollutant including oxygen demanding pollutants (BOD, etc.) that are released at a flow rate and/or pollutant concentration that causes interference with the POTW. 3.97 Specific Compliance Plan - Shall mean a plan submitted to the District by an Industrial User pursuant to Section 14 herein, which specifies to the General Manager's satisfaction the cause of noncompliance, the corrective actions which will be taken to prevent recurrence of said noncompliance, and, if required by the General Manager, a proposed Compliance Time Schedule. 3.98 Specific Local Discharge Limitations (Local Limits) - Shall mean limitations adopted from time-to-time by resolution of the Board restricting quantities or concentrations of pollutants or pollutant properties which may be discharged or introduced into the POTW by permitted Industrial Users. 3.99 "Standard Methods" - Shall mean "Standard Methods for the Examination of Water and Wastewater", latest edition, prepared and published by the American Public Health Association, American Water Works Association, and Water Environment Federation, which specifies accepted procedures used to assess the quality of water and wastewater. 3.100 Surcharge - Shall mean an assessment, in addition to the service charge, which may be levied on those Users whose wastes are greater in strength than surcharge threshold concentration values established by the General Manager. 3.101 Toxic Amount - Shall mean concentration of any pollutant or combination of pollutants which upon exposure to or assimilation into any organism which will cause adverse effects, such as cancer, genetic mutations and physiological manifestations, as defined in standards issued pursuant to Section 307(a) of Public Law 92-500. 3.102 Toxic Pollutant - Shall mean any pollutant or combination of pollutants listed as toxic in 40 CFR 401.15 or 40 CFR 403, Appendix B. 3.103 User - Shall mean any person who contributes, causes, or permits the contribution of wastewater into the POTW, including, without limitations, Households, Private Residences, Industrial Users and Nonresidential Users. Ordinance 407 13 3.104 Water Reclamation Plant - Shall mean arrangement of facilities and operations used for treating sewage. 3.105 Wastewater Department - Shall mean the Board of Directors of the District performing functions related to the District's sewer service, together with the General Manager, the Chief Financial Officer, the Director of Engineering and Operations, and any other duly authorized representatives. 3.106 Waste Discharge Requirements Permit (WDR Permit) - Shall mean the permit issued to the POTW by the California Regional Water Quality Control Board, Santa Ana Region. 3.107 Wastewater System - Shall mean all facilities for collecting, pumping, treating, and disposing of sewage. 3.108 Wastewater Treatment Plant - Shall mean the POTW Treatment Plant, the Sterling Natural Resource Center (SNRC). 3.109 Water Conditioning Device - Shall mean any device used to soften or otherwise condition water, including zeolite or resinous anion or cation exchange softeners, demineralizers, and any other like device. SECTION 4. SEWER DEPARTMENT 4.01 Creation - A Sewer Department is hereby created comprised of the Directors, the General Manager, the Financial Officer, the Director of Engineering and Operations, and other employees and assistants as may be hired therefor. 4.02 General Manager - The General Manager, as provided for in the Water Code, shall have full charge and control of the maintenance, operation, and construction of the Wastewater System of the District. 4.03 Director of Engineering and Operations - The position of Director of Engineering and Operations is hereby created. The Director of Engineering and Operations shall regularly inspect all physical facilities related to the District Wastewater System, to see that they are in good repair and proper working order, and to note and report violations of any ordinances or sewer regulations. 4.04 Violation, Repairs - The Director of Engineering and Operations shall promptly report any violation or disrepair to the General Manager. If the work required is in the nature of an emergency, he shall take whatever steps are necessary to maintain service to consumers pending action by the General Manager. 4.05 Supervision - The Director of Engineering and Operations shall supervise all repair or construction work authorized by the Board or the General Manager, and perform any other duties prescribed by the Board or the General Manager. 4.06 Performance of Duties - The foregoing duties of the Director of Engineering and Operations may be performed by the General Manager or by an additional employee or employees, as designated by the Director of Engineering and Operations 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. The Financial Officer shall compute, prepare, and mail bills as hereinafter prescribed, make and deposit collections, maintain proper books of accounts, collect, account for, and do whatever else is necessary or directed by the General Manager to set up and maintain an efficient and economical accounting system, and perform any other duties now and hereinafter prescribed by the Board of Directors. SECTION 5. GENERAL RULES 5.01 Standards - The Uniform Plumbing Code, 2021 Edition, as compiled by International Association of Plumbing and Mechanical Officials ("UPC"), together with all subsequent amendments thereto relating to sewers, and the following rules and regulations respecting sewer construction and disposal of sewage and Ordinance 407 14 drainage of buildings, and connection to the Wastewater System of the District are hereby adopted, and all work in respect thereto shall be performed as herein required and not otherwise. The Governing Body may, from time to time, adopt standard requirements for the design construction, repair and maintenance, or connection to the District Wastewater 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 sewage disposal from any building in the area served with sewers by said District except by connection to a Public Sewer 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 Director of Engineering and Operations. 5.03 Notice - Wherever, or whenever, practicable under the particular circumstances of the situation and pursuant to the discretion of the General Manager, Financial Officer, or Director of Engineering and Operations, 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 or any other ordinance, rule or regulation of the District of any defect arising in any sewer or of any violation of this ordinance, the person or persons having charge of said work shall immediately correct the same. 5.04 Protection from Damage - No person shall maliciously, willfully, or negligently break, damage, destroy, uncover, deface or tamper with any structure, appurtenance or equipment which is a part of the District's sewerage works. Any person violating this provision shall be subject to the penalties provided by law. 5.05 Investigation Powers - The officers, inspectors, managers, employees and any duly authorized agents of the District shall carry evidence establishing his/her 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 sewer service, or has been requested to furnish sewer service, 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, rules and regulations of the District, pursuant to the authorization contained in the required application for sewer service. 5.06 Public Nuisance - Continued habitation of any buildings or continued operation of any industrial facility in violation of the provisions of this or any other ordinance, rule or regulation of the District is hereby declared to be a public nuisance. The District may cause proceedings to be brought for the abatement of the occupancy of the building or industrial facility during the period of such violation. 5.07 Disconnection - As an alternative method of enforcing the provisions of this or any other ordinance, rule or regulation of the District, the District shall have the power to disconnect the user or subdivision sewer system from the sewer mains of the District. 5.08 Abatement - During the period of such disconnection, habitation of such premises by human beings shall constitute a public nuisance, whereupon the District shall cause proceedings to be brought for the abatement of the occupancy of said premises by human beings during the period of such disconnection. In such event, and as a condition of reconnection, there is to be paid to the District, a reasonable attorney's fee and cost of suit arising in said action. Ordinance 407 15 5.09 Water Cut-Off - As an alternative remedy for such violations the District may cause District water service to said premises to be discontinued during the period of violation. 5.10 Unconnected and Unoccupied Buildings - In the event that owners of any buildings or facilities have failed to connect to the Public Sewer after receipt of official notice to do so, the District will be unable to bring abatement actions if such buildings are unoccupied. To prevent the sale of such buildings to persons with no knowledge of such, the District will record such notices with the County Recorder of San Bernardino County. The District Secretary is authorized and directed to cause a Notice of Necessity of Connection to Public Sewer to be prepared with reference to those unoccupied properties and buildings within the sewer District which have not been connected to the District Public Sewer within thirty days after the giving of Official Notice to so connect; to sign such Notices; to acknowledge such Notices; and to record the same with the County Recorder of San Bernardino. 5.11 Damage to Wastewater System 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, licenses or permittees. The District shall be promptly reimbursed by the customer for any such damage upon presentation of a bill. 5.12 Means of Enforcement Only - The District hereby declares that the foregoing procedures are established as a means of enforcement of the terms and conditions of its ordinances, rules and regulations, and not as a penalty. 5.13 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. 5.14 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 him/her , or his/her premises, he/she 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 him/her, or his/her premises. If such application be approved, the Governing Body may, by resolution, suspend or modify the provision 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. 5.15 Relief on Own Motion - The Governing Body may, on its own motion, find that by reason of special circumstances, any provision 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 person or premise during the period of such special circumstances or any part thereof. 5.16 Permits Required - No person shall construct, extend or connect to any Public Sewer without first obtaining a written permit from the District and paying all fees and connection charges and furnishing bonds as required. The provision of this Section requiring permits shall not be construed to apply to contractors constructing sewers and appurtenances under contracts awarded and entered into by the District. SECTION 6. REQUIRED USE OF PUBLIC SEWERS 6.01 Required Treatment of Wastes - Except as herein provided, it shall be unlawful to construct or maintain any privy, privy vault, septic tank, cesspool, seepage pit or other facility intended or used for the disposal of sewage within the District where District sewer facilities are available and hereinafter described for such disposal purposes. Ordinance 407 16 6.02 Sewer Required - The owner of any building or structure occupied by humans, situated within the District and abutting on any street or easement in which there is a Public Sewer of the District, is hereby required at their expense to connect said building directly with the sewers of the District, in accordance with the provisions of this Ordinance, within thirty (30) days after the date of official notice to do so, provided that said Public Sewer is within two hundred (200) feet of the nearest point of the property on which the building or structure is located. This requirement shall also be applicable to any commercial, industrial, and public buildings or institutions, to connect to said sewer system upon notice as herein provided. 6.03 Construction Requirements - Construction of building sewers and lateral sewers shall be in accordance with the requirements hereof. 6.04 Separate Sewers - Every building or industrial facility must be separately connected with a Public Sewer if such Public Sewer exists in the street upon which the property abuts or in an easement which will serve said property. However, one or more buildings located on a lot or parcel of land belonging to the same owner may be served with the same side sewer during the period of ownership. Upon the subsequent subdivision of said lot and sale of a portion thereof, the portion not directly connected with such Public Sewer shall be separately connected with a Public Sewer, and it shall be unlawful for the owner thereof to continue to use or maintain such indirect connection. 6.05 Old Building Sewers - Old building side sewers may be used in connection with new buildings only when they are found, upon examination and test by the Inspector, to meet all requirements of the District. 6.06 Cleanouts - Cleanouts in building sewers shall be provided where the building sewer joins the building outlet and in accordance with the Uniform Plumbing Code. All cleanouts shall be maintained watertight. 6.07 Plumbing too Low - In all buildings in which the plumbing system is too low to permit gravity flow to the Public Sewer, sanitary sewage carried by the building sewer shall, upon authorization of the General Manager or Director of Engineering and Operations, be lifted by artificial means and discharged to the Public Sewer at the expense of the owner. 6.08 Connection to Public Sewer - The construction of the lateral sewer and the connection thereof into the Public Sewer, shall be made by a licensed plumber or contractor. Said connection shall be connected at the lateral or "Y" branch, if such lateral or "Y" branch is available at the suitable location. Where no properly located "Y" branch is available, a connection with the Public Sewer may be made to receive the lateral sewer. The invert of the building or lateral sewer at the point of connection shall be at a higher elevation than the invert of the Public Sewer. A smooth neat joint shall be made, and the connection made secure and watertight by encasement in accordance with District standards. The connection to the Public Sewer shall be made in the presence of the District Inspector and shall be subject to their approval. Any damage to the Public Sewer shall be repaired at the cost of the applicant, to the satisfaction of the Inspector. 6.09 Protection of Excavation - All excavations for a lateral sewer installation shall be adequately guarded with barricades or lights to protect the public from hazard. Streets, sidewalks, parkways, and other property disturbed in the course of the work shall be restored in a manner satisfactory to the District and any other person having jurisdiction thereover at the sole expense of the person responsible for such installation. 6.10 Maintenance of Side Sewer - Side sewers shall be maintained by the owner of the property served. 6.11 Indemnification - The owner of the property and the person making the connection shall be obligated to hold the District, its officers, agents, and employees harmless of and from all loss or liability which shall occur or arise by reason of the installation of the lateral sewer and the opening of the easement and the backfill and restoration of the pavement. Ordinance 407 17 SECTION 7. USE OF PUBLIC SEWERS 7.01 Requirements - All applicable requirements of the City of San Bernardino regarding the use of public sewers are hereby incorporated herein by this reference until the District commissions the Sterling Natural Resources Center, then Sections 9, 10, 11, 12, 13, 14, 15, and 16 will replace requirements of the City of San Bernardino in addition to the other sections already described in this Ordinance. 7.02 Sewer Permit Required - No person shall uncover, make any connection with or opening into, use, cap, alter or disturb any Public Sewer or appurtenances without first obtaining a written sewer permit from the District. 7.03 Application for Sewer Permit - Any person seeking a sewer permit shall make such application to the District for that purpose. He/she shall give a description of the character of the work proposed to be done, the location, ownership, occupancy, and use of the premises to be served and the name and address of the person who shall make the connection. The Director of Engineering and Operations may require plans, specifications, or drawings and such other information as he may deem necessary or Permitee shall comply with specifications of the District. If the District determines that the plans, specification, drawings, descriptions, or information furnished by the applicant is in compliance with the ordinances, rules, and regulations of the District, it shall issue the sewer permit applied for upon payment of the required fees therefore. 7.04 Compliance with Sewer Permit - After approval of the application evidenced by the issuance of a sewer permit, no change shall be made in the location of the sewer, the grade, materials, or other details from those described in the permit or as shown on the plans and specifications for which the sewer permit was issued except with written permission from the District, the Director of Engineering and Operations or other authorized representatives. 7.05 Agreement - The applicant's signature on an application for any sewer permit shall constitute an agreement to comply with all the provisions, terms and requirements of this and other ordinance, rules and regulations of the District, and with the plans and specifications he has filed with this application, if any, together with such corrections or modifications as may be made or permitted by the District, if any. Such agreement shall be binding upon the applicant and may be altered only upon the written request from the applicant for the alteration. 7.06 All Work to be Inspected - All sewer connection work over which the District has jurisdiction shall be inspected by the District to ensure compliance with all requirements of the District. No such sewer connection work shall be covered at any point until it has been inspected and passed for acceptance. No sewer shall be connected to the District's Public Sewer until the work has been completed, inspected, and approved by the District. 7.07 Notification - It shall be the duty of the person doing the work authorized by the sewer permit to notify the District Office that said work is ready for inspection. Such notification shall be given not less than forty- eight (48) hours before the work is to be inspected, excluding weekends and holidays. 7.08 Condemned Work - When any work has been inspected and the work condemned and no such certification of satisfactory compliance given, a written notice to that effect shall be given instructing the owner of the premises, or the agent of such owner, to repair the sewer or other work authorized by the permit in accordance with the ordinances, rules, and regulations of the District. 7.08 Liability for Costs - Both the owner and the person making the connection shall be liable to the District for all fees, costs, and expenses incident to the work for which a sewer permit shall be issued. The owner Ordinance 407 18 shall indemnify the District from any loss or damage that may directly or indirectly be occasioned by the work. 7.10 Outside Sewers - Permission shall not be granted to connect any lot or parcel of land outside the District to any Public Sewer in, or under, the jurisdiction of the District unless a sewer permit therefore is obtained. Applicants shall first enter into a contract in writing whereby they shall bind themselves, their heirs and successors and assigns to abide by all ordinances, rules, and regulations in regard to the manner in which such sewer shall be used, the manner of connecting therewith, and the plumbing and drainage in connection therewith, and also shall agree to pay all fees required for securing the sewer permit and a monthly fee in the amount set by the District for the privilege of using such sewer. 7.11 Sewer Permit Optional - The granting of such permission for an outside sewer in any event shall be optional with the Governing Body. 7.12 Special Outside Agreements - Where special conditions exist relating to an outside sewer, they shall be the subject of a special contract between the applicant and the District. 7.13 Street Excavation Permit - A separate permit must be secured from the City, the County or any other person having jurisdiction therefor by the owners or contractors intending to excavate in a public street for the purpose of installing sewers or making sewer connections. 7.14 Liability - The District and its officers, agents and employees shall not be answerable for any liability or injury or death to any person or damage to any property arising during or growing out of, the performance of any work by any such applicant. The applicant shall be answerable for and shall hold the District and its officers, agents, and employees, harmless from any liability imposed by law upon the District or its officers, agents or employees, including all costs, expenses, fees and interest incurred in defending same or in seeking to enforce this provision. Applicant shall be solely liable for any defects in the performance of his work or any failure which may develop therein. 7.15 Time Limit on Sewer Permits - If work under a sewer permit is not started within twelve (12) months from the date of issuance, or if after partial completion the work is discontinued for a period of one (1) year the sewer permit shall thereupon become void, and no further work shall be done until a new sewer permit shall have been secured. A new fee shall be paid upon the issuance of said new sewer permit. 7.16 Backwater Valve Required -The District may require the installation of an approved backwater valve as specified in the Uniform Plumbing Code or as deemed necessary by the District to protect the Owner's Property. SECTION 8. APPLICATION FOR SEWER SERVICE 8.01 Application - A property owner or his/her agent, designated in writing, shall make application for regular sewer service by personally signing a Service Agreement provided by the District, and paying the required fees. The property owner will remain the primary account holder, or Customer of Record, with respect to District services for as long as they own the property. 8.02 Sewer Service to Customers Other than Property Owners - Sewer service to other than property owners shall be made as follows: 8.02.01 Additional Customer of Record - If the property owner rents the premises to a tenant, the tenant may have sewer and other services instituted in their name by completing an Owner Authorized Billing Agreement. The tenant and owner must both sign the agreement and the District must be provided with a copy of an active rental agreement. In any event, the tenant Ordinance 407 19 must provide the District with the property owner’s name, mailing address, and telephone number. 8.02. 02 Owner Responsibility - Whether or not a property owner signs the Owner Authorized Billing Agreement, the property owner is not relieved of his or her responsibility for unpaid sewer charges for the subject property as provided in this ordinance and pursuant to California Water Code Section 31701.5. 8.03 Payment of Delinquent Charges - As a precondition to receiving sewer service from the District, the applicant for service shall pay 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. 8.04 Security Deposit - A security deposit for each residential, commercial, or retail unit shall be deposited at the time application for service is made. The District may, at its sole election, include the required security deposit on the customer's first billing invoice. 8.04.01 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 credit worthiness shall be based solely upon criteria developed by the District and may be appealed in the manner set forth in Section 10 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 any time after being locked off for non-payment. 8.04.02 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. 8.04.02.01 Residential - The District shall refund each security deposit to a residential customer as follows: a. Upon customer request, where single-family residential funds have been on deposit for one year in the 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 any time after being locked off for non-payment. b. Upon customer request, Wwhere multi-family residential customer 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. Within thirty (30) days after the applicant provides written notice to terminate sewer services, or when a new property owner tenders a full deposit for the same property, in which case the refunded Ordinance 407 20 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. 8.04.02.02 Non-Residential - The District shall refund the security deposit for commercial, retail, and industrial, fire service, and irrigation connections as follows: a. Where funds have been on deposit for one year in a customer’s account and there have been no delinquencies 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 sewer 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. 8.05 Changes in Customer's Equipment - Customers making any material change in the size, character of, extent of the equipment or operations utilizing sewer service, or whose change in operations results in a significant increase in the quantity or quality of sewage, shall immediately give the District written notice of the nature of the change and, if necessary, amend their applications and discharge permits if applicable. 8.06 Domestic, Commercial, and Industrial Service Connections - It shall be unlawful to maintain a sewer connection except in conformity with the following: 8.06.01 Multiple Buildings - Multiple house or buildings under one ownership and on the same lot or parcel of land may be supplied through the same sewer connection, provided that the service connection shall be of such size to adequately serve said houses or buildings. 8.06.02 Separate Sewer Connection - A sewer connection shall not be used by an adjoining property or property across the street, alley, or easement. Each sewer lateral shall serve only one lot or individual parcel. 8.06.03 Divided Property - When property provided with a sewer connection is divided, each service connection shall be considered as belonging to the lot or parcel of land which it directly enters. 8.06.04 Industrial Users Plan Check Requirements - All Industrial Users who request authorization to connect to the POTW and all existing industrial users who propose tenant improvements shall be required to submit detailed site plans, including plumbing plans which describe the proposed project, facility expansion, or process modifications, in addition to any other information as requested by the General Manager. 8.07 Main Extension Required - All main extensions shall be made in accordance with the policies of the District upon application for service and payment of required charges. 8.07.01 Application - Any owner of one or more lots or parcels or sub divider of a tract of land, desiring the extension of one or more mains to serve such property shall make a written application to the District. Said application shall contain the legal description of the property to be served and tract number thereof, and any additional information which may be required by the District, and be accompanied by a map showing the location of the proposed connection. Main extensions will normally be constructed by owner or sub-divider. Ordinance 407 21 8.07.02 Investigation - Upon receipt of an application requesting the District to install facilities, the District shall make an investigation and survey of the proposed extension and estimate the cost thereof. 8.07.03 District Lines - All sewer main extensions shall be in accordance with the rules, regulations, specifications, and ordinances of the District and shall be the property of the District. 8.07.04 Specifications and Construction - The size, type and quality of materials and location of the sewer lines shall be to District specifications as adopted. For sewer lines not installed by the District, the sub-divider shall be responsible for employing a licensed contractor to install the required sewers. All work shall be inspected and approved by the District. 8.07.05 Property of District - Upon completion of such installation, the facilities shall be dedicated to and become the property of the District. 8.07.06 Offer of Dedication - Forms for offer of dedication shall be provided by the District. Sewer plans shall be signed by a Registered Civil Engineer and returned to the District. Sewer plans will not be filed or approved until compliance has been met herewith. 8.07.07 Form of Offer of Dedication - Offers of sewer dedication shall be on District forms in accordance with the latest "Standard Specification for the Furnishing of Materials and the Construction of Water and Sewer Facilities". 8.07.08 Engineering Services - Engineering services provided by the District shall include technical and procedural guidance, professional consultant services, project coordination, and plan checking. 8.07.09 Construction Permit - Applicant or his/her authorized agent shall make application for a Construction Permit in accordance with the latest "Standard Specification for the Furnishing of Materials and the Construction of Water and Sewer Facilities" of the District. 8.08 Dry Sewers Required - Any division of land or development involving five (5) or more units within the jurisdiction of the East Valley Water District which is greater than 500 feet from an existing sewage collection facility, may be allowed to use individual sewage disposal systems, provided: 8.08.01 A "dry" sewer collection line is installed in the public right-of-way to the specifications of the Director of Engineering and Operations with the capacity for all sewage generated by the subdivision; 8.08.02 The "dry" sewer includes lateral lines to within five (5) feet of the septic tank to be installed on each lot; and 8.08.03 Plugs and seals are placed on the "dry" sewers to prevent unauthorized connection. 8.09 Payment of Capacity Fees and Abatement Fees - The Developer shall pay to the District the appropriate capacity fees and connection fees, plus a fee established from time to time by the Board of Directors which shall be used for the proper abandonment of the individual sewage disposal system. 8.10 Dedication of Dry Sewers to District - The Developer shall agree that the facilities installed in the public right-of-way be dedicated to the District as provided in Section 8.07.06 herein and after inspection by the Director of Engineering and Operations. 8.11 Dedication of Right of Access - The Developer shall grant to the District a right of access to the individual sewage disposal system on each lot and have this right of access recorded as part of the final tract map or other instrument, and provide written notification to the purchaser of each unit of the development. Ordinance 407 22 8.12 Connection to Sewage Collection Facilities - When sewer collection facilities are available to the development, the District shall have the right to declare the use of the individual sewage disposal system a public nuisance and enter onto the property for the purpose of connecting the premises to the sewer collection system and properly abandoning the individual sewage disposal system without additional cost to the owner of the premises. Provided, however, that the District shall not be obligated to remove, reconstruct, relocate, or otherwise modify any structure, tree, bush, or appurtenance of any kind whatsoever in making the connection and properly abandoning the individual sewage disposal system. 8.13 Sewer Permit to Connect - The District shall require the owner, or occupant, of the building to be connected to obtain a sewer permit from the District for such connection. No fees shall be charged for such sewer permit if they have been paid pursuant to Section 8.09 herein. The applicant for the sewer permit shall specify in writing that they will indemnify and hold the District harmless in making the connection to the sewage collection facility and abandoning the individual sewage system. 8.14 Minimum Individual Sewage Systems Required - Whenever the use of individual sewage disposal systems are installed in connection with "dry" sewers, the District will not agree that any such system be installed which is less than the minimum requirements for the type of system which is designed for use on this development. SECTION 9. GENERAL AND SPECIFIC PROHIBITIONS 9.01 New or Increased Pollutant Discharges - Use of the Sewer System of the District shall be a privilege subject to the Rules and Regulations of the District, and the privilege may be revoked for non-compliance with this Ordinance and the Rules and Regulations. No right, title, or interest to continue to use the Sewer System shall exist or accrue by reason of existing discharge, permit or authorization of the District. 9.02 General Discharge Prohibitions - No person shall discharge or cause to be discharged any pollutant or wastewater to the District’s wastewater system if it appears likely in the opinion of the General Manager or Director of Engineering and Operations that such wastes may cause or contribute to pass-through or interference. 9.03 Specific Prohibitions - No person shall introduce or cause to be introduced into the District’s sewer system the following: 9.03.01 Pollutants which create a fire or explosive hazard in the District’s sewer system, including but not limited to, waste streams with a closed cup flashpoint of less than 140°F (60°C) using the test methods specified in 40 CFR 261.21 or which result in conditions where two successive readings on an explosion hazard meter at the point of discharge into the system (or at any point in the system), are more than 5%, or any single reading is over 10%, of the Lower Explosive Limit (LEL) of the meter. Prohibited materials include, but are not limited to, gasoline, kerosene, naptha, benzene, toluene, xylenes, ethers, alcohols, ketones, aldehydes, peroxides, chlorates, perchlorates, bromates, carbides, hydrides, and sulfides; as discharged in such quantities as to potentially result in any of the hazards noted above; 9.03.02 Any solid, semi-solid or viscous substances which may obstruct the flow of sewage, cause clogging of or adversely affect sewage pumping equipment, or sewage sludge pumping equipment, or the community sewer system, or interfere with the operation of the POTW, such as, but not limited to, grease, garbage with particles greater than 3/8" in any dimension, dead animals, animal guts or tissues, paunch manure, bones, hair, hides or fleshings, entrails, excessive quantities of whole blood, feathers, ashes, cinders, earth, sand, mud, gravel, rocks, plaster, concrete, spent lime, stone or marble dust, metal, metal filings or shavings, wood, wood Ordinance 407 23 shavings, straw, grass clippings, spent grains, spent hops, waste paper, paper containers or other paper products, rags, plastics, tar, asphalt, asphalt residues, residues from refining or processing of fuel or lubricating oil, glass, or glass grinding or polishing wastes; 9.03.03 Any recognizable portion of human or animal anatomy; 9.03.04 Any discharge which may, alone or in combination with other waste substances, result in the presence of solids, liquids, gases, vapors, or fumes in the POTW in such quantities that would create a hazard, public nuisance, or acute worker health and safety problems; 9.03.05 Any unpolluted water, including but not limited to, storm water, rainwater, ground water, street drainage, subsurface drainage, roof drainage, yard drainage, water from yard fountains, ponds, lawn sprays or any other type of surface water, or single pass, non-contact cooling or heating water. The General Manager may approve, on a temporary basis, the discharge of such waters to the POTW when no reasonable alternative method of disposal is available, subject to the payment of all applicable User charges and fees by the Discharger; 9.03.06 Corrosive wastewater having a pH less than 5.0 or more than 11.0, or which will cause the pH of the influent to the POTW to drop below 6.5 or rise above 8.0, or otherwise causing corrosive structural damage to the District’s wastewater treatment plant, collection system or equipment; 9.03.07 The discharge of any substance, which, if otherwise disposed of, would be classified as a hazardous waste pursuant to 40 CFR 261 or as a toxic waste as defined Title 22 of the California Code of Regulations, Section 66261.24; 9.03.08 Any noxious or malodorous liquids, gases, or solids that either singly or by interaction with other wastes are sufficient to create a public nuisance or are sufficient to impair personnel access to the POTW for maintenance and repair; 9.03.09 Any substance which may cause the POTW's effluent, or any other product of the POTW, such as residues, sludges, or scums, to be unsuitable for reclamation and reuse or which will interfere with any of the reclamation process. In no case shall a substance discharged to the POTW cause the POTW to violate the provisions of Title 22 of the California Code of Regulations pertaining to Groundwater Replenishment Reuse Projects (GRRP). In no case shall a substance discharged to the POTW cause the POTW to violate applicable sludge use or disposal regulations established under the Federal Clean Water Act, 33 USCA, Section 1251 et. Seq., or 40 CFR 503 or any criteria, guidelines, or regulations affecting sludge use or disposal developed pursuant to the Solid Waste Disposal Act (SWDA), the Clean Air Act (CAA), Toxic Substances Control Act (TSCA), the Resource Conservation and Recovery Act (RCRA), the Marine Protection, Research and Sanctuaries Act (MPRSA), or pursuant to the provisions of the California Code of Regulations, all as they may now exist or hereafter may be amended; 9.03.10 Any slug loads from raw material, spent solutions, or sludges generated from processing tanks or vessels, unless no reasonable alternative is available to prevent severe loss of life or to protect the environment. These shall include, but are not limited to, wash tanks, chemical conversion tanks, acid and alkali tanks, lubricating tanks, condensate from dry cleaning processes, fruit and vegetable wash tanks, brine wastewater from soft water regeneration processes above permitted limits, and any other tank or vessel containing a material which would exceed permitted discharge limits. Ordinance 407 24 9.03.11 Any wastewater with objectionable color not removed in the treatment process such as, but not limited to, dye wastes and vegetable tanning solutions, and any substance that will cause discoloration of the POTW effluent; 9.03.12 Any trucked or hauled pollutants or wastewater, except at such place and in such manner as prescribed by the General Manager; 9.03.13 Any overflow from a septic tank, facility wastewater holding tank, cesspool or seepage pit, or any liquid or sludge pumped from a septic tank, facility wastewater holding tank, cesspool or sewage pit, except as may be permitted by the General Manager. 9.03.14 Any discharge from any wastewater holding tank of a recreational vehicle, trailer, bus and other vehicle, except as may be permitted by the General Manager. 9.03.15 Pesticides, Herbicides, Algaecides, or Fertilizers in excess of the local or national categorical discharge standards, including any quantity of DDT (both isomers), DDD, DDE, Aldrin, Chlordane, Dieldrin, Endosulfan (alpha, beta, and sulfate), Endrin, Endrin Aldehyde, Heptachlor, Heptachlor Epoxide, Lindane, Disulfoton, Phorate, and/or Toxaphene; 9.03.16 Any material or quantity of material(s) which will cause abnormal sulfide generation; 9.03.17 Any petroleum oil, refined petroleum products, or products of mineral oil origin in excess of local or national discharge limits in amounts which could cause Interference or Pass-Through; 9.03.18 Any radiator fluid or coolant, water-based solvent, or non-biodegradable soluble cutting oils in excess of local or national discharge limits; 9.03.19 Any liquid or other waste containing fats, wax, grease, or oils, which may solidify or become viscous at temperatures between 32°F (0°C) and 150°F (65°C); 9.03.20 Any liquid or other dental amalgam waste defined in and regulated by 40 CFR Part 441 - Dental Office Point Source Category; 9.03.21 Any silver-containing photo processing waste from developing or fixing solutions or rinse waters that are not in compliance with the District’s discharge limits; 9.03.22 Any Toxic Organics in amounts which are determined to be toxic to the maintenance or operation of the POTW. EVWD may require the submittal of a Toxic Organic Management Plan (TOMP) from any user determined to discharge Toxic Organics above detection limits; 9.03.23 Any wastewater having a temperature which will inhibit biological activity at the POTW Treatment Plant resulting in Interference, but in no case wastewater with a temperature higher than 140°F (60°C) or which causes the temperature at the POTW Treatment Plant to exceed 104°F (40°C); 9.03.24 Any wastewater containing any radioactive wastes or isotopes of such half-life or concentration in excess of federal, state, or county regulations, as may cause Interference, Pass-Through, or violation of applicable State or Federal regulations; 9.03.25 Waste recovered from pretreatment equipment, systems, or devices; 9.03.26 Any PCBs and Dioxins, including, but not limited to, the following compounds: Arochlors 1221, 1228, 1232, 1242, 1254, 1260, 1262, and TCDD equivalents; Ordinance 407 25 9.03.27 Any pollutant, including, but not limited to, oxygen demanding pollutants (BOD, COD, etc.) released in a Discharge at a flow rate and/or pollutant concentration which will cause Interference with the POTW; 9.03.28 Any pollutant(s), material, or quantity of material which will cause: 1) damage to any part of the POTW; 2) abnormal maintenance of the POTW; 3) an increase in the operational costs of the POTW; 4) a nuisance or menace to public health; 5) interference or pass-through in the POTW, its treatment processes, operations, sludge processes, use or disposal. This applies to each user introducing pollutants into the POTW whether or not the user is subject to other National Pretreatment Standards or any Federal, State, or local pretreatment requirements; or 6) A violation of the EVWD Waste Discharge Requirements permit; and 9.03.29 Any wastewater that has been intentionally diverted (bypassed) from any portion of the Industrial User’s treatment equipment unless the bypass meets the following provisions: 1) bypass was unavoidable to prevent loss of life, personal injury, or severe property damage; 2) there were no feasible alternatives to the bypass, such as the use of auxiliary treatment facilities, retention of untreated wastes, or maintenance during normal periods of equipment downtime. This condition is not satisfied if adequate back- up equipment should have been installed in the exercise of reasonable engineering judgment to prevent a bypass which occurred during normal periods of equipment downtime or preventative maintenance; and 3) the Industrial User notifies the District prior to bypassing the treatment equipment. 9.04 Discharging Pollutants to the Environment - No person shall circumvent the intent or purpose of this Ordinance by discharging, or by causing to be discharged, into any storm drain, channel, natural water course or public street, or onto the ground, or into a well, or into any sump or pit that is not impermeable, material or waste prohibited or restricted as to its discharge into a sewer system. 9.05 Point of Discharge Prohibition - No person, except authorized District personnel involved in maintenance functions of sanitary sewer facilities, shall discharge or cause to be discharged any solid or liquid substance directly into a manhole or other opening of the POTW other than through an approved building sewer connection, unless the User first obtains a Class IV Permit and the discharge otherwise complies with this Ordinance. This provision shall not apply to authorized EVWD or contract District personnel involved with the maintenance, cleaning, repair, or inspection of the collection system. 9.06 Prohibition Against Dilution - No person shall increase the use of process water or, in any way, attempt to dilute a discharge as a partial or complete substitute for adequate treatment to achieve compliance with Categorical Standards. 9.07 Interference with District Equipment or Facilities - No person shall enter, break, damage, destroy, uncover, deface, or tamper with any temporary or permanent structure, equipment or appurtenance which is part of the District’s collection system or POTW without prior written approval by the General Manager. SECTION 10. SPECIFIC POLLUTANT LIMITATIONS 10.01 Specific Local Discharge Limitations (Local Limits) - No permitted Industrial User shall, except as hereinafter provided, discharge or cause to be discharged to the Sewer System any wastewater unless it conforms to the requirements of this Ordinance and all applicable Local Limits as may, from time to time, be established by resolution of the Board of Directors. 10.02 Categorical Standards - Categorical Standards, as they now exist or may hereafter be amended, are hereby incorporated into this Ordinance. In the event new or amended Categorical Standards include limitations Ordinance 407 26 more stringent than limitations incorporated into this Ordinance, the more stringent limitation shall automatically be incorporated herein by this reference. 10.03 Limitations of Water Softeners 10.03.01 Industrial User Water Softener Policy - No Industrial User shall install, replace, enlarge, or use any Water Conditioning Device for softening all or any part of the water supply to any premises when such apparatus is an ion-exchange softener or demineralizer of the type that is regenerated at the site of use with the regeneration wastes being discharged to the ground, storm drain or the POTW unless the Water Conditioning Device is in compliance with the following conditions: 10.03.01.01 The brine solutions generated during the backwash cycles of the Water Conditioning Device shall be segregated from the freshwater rinses for disposal to a legal brine disposal site; 10.03.01.02 The backwash equipment shall be equipped with an electrical conductivity- controlled discharge valve that controls the wastewater discharged to the POTW. The electrical conductivity valve shall be calibrated at a minimum annually or as often as necessary to control and prevent any wastewater from being discharged to the POTW that exceeds the maximum electrical conductivity, total dissolved solids, or associated sodium and chloride concentrations established in the local discharge limitations; and 10.03.01.03 The Industrial User shall maintain the electrical conductivity-controlled discharge valve in proper operating condition at all times. The industrial user shall notify the General Manager within twenty-four (24) hours in the event of a valve failure and immediately cease the discharge of all wastewater to the POTW associated with the soft water regenerating processes. A written report documenting the cause of the failure and the corrective actions taken shall be submitted to the District, within five calendar days after discovery of the electrical conductivity valve failure. 10.03.02 Residential User Water Softener Policy - Pursuant to California Health and Safety Code Sections 116775-116795 and amendments thereto, no residential water softening or conditioning appliance shall be installed except in either of the following circumstances: 10.03.02.01 The regeneration of the appliance is performed at a nonresidential facility separate from the location of the residence where such appliance is used. 10.03.02.02 The regeneration of the appliance discharges to the waste disposal system of the residence where such appliance is used and the following conditions are met: 10.03.02.02.1 The appliance activates regeneration by demand control. 10.03.02.02.2 An appliance installed on or after January 1, 2000, shall be certified by a third-party rating organization using industry standards to have a salt efficiency rating of no less than three thousand three hundred fifty grains of hardness removed per pound of salt used in generation. An appliance installed on or after January 1, 2002, shall be certified by a third-party rating Ordinance 407 27 organization using industry standards to have a salt efficiency rating of no less than four thousand grains of hardness removed per pound of salt used in generation. 10.03.02.02.3 The installation of the appliance is accompanied by the simultaneous installation of the following softened or conditioned water conservation devices on all fixtures using softened or conditioned water, unless such devices are already in place or are prohibited by local and state plumbing and building standards or unless such devices will adversely restrict the normal operation of such fixtures: 1. Faucet flow restrictors. 2. Shower head restrictors. 3. Toilet reservoir dams. 4. A piping system installed so that untreated (unsoftened or unconditioned) supply water is carried to hose bibs and sill cocks which serve water to the outside of the house, except that bypass valves may be installed on homes with slab foundations constructed prior to the date of installation; or condominiums constructed prior to the date of installation; or otherwise where a piping system is physically inhibited. 10.03.02.03 The certification required under Subsection 10.03.02.02 of this Section shall be provided by the new user of the appliance and shall be completed by a contractor having a valid Class C-55 water conditioning contractor's license or Class C-36 plumbing contractor's license and filed with the City Building Division. The certification form shall contain all the following information: 1. Name and address of homeowner; 2. Manufacturer of the water softening or conditioning appliance, model number of the appliance, pounds of salt used per regeneration, and salt efficiency rating at the time of certification. 3. Manufacturer of the water-saving devices installed, model number, and number installed; and 4. Name, address, and the specialty contractor's license number of the C-55 and C-36 licensee making the certification. 10.04 Swimming Pool Policy - Discharges from non-saltwater swimming pools, wading pools, spas, whirlpools, and therapeutic pools may be permitted to the Public Sewer on a case-by-case basis as determined by the General Manager. The discharge of saltwater pools to the Sewer System is specifically prohibited. Each person who desires to drain a swimming pool, wading pool, spa, whirlpool, or therapeutic pool shall first obtain permission from the General Manager to discharging any of these waters. Permission may be granted by the General Manager if the discharge will: 1. Not cause hydraulic overload conditions in any of the District’s sewer lines; Ordinance 407 28 2. Meets all applicable specific limitations for wastewater quality as established by the District, including but not limited to pH, TDS, chloride, sodium, BOD, and TSS; 3. Commence at a time of day and rate of flow that minimizes the impact of the wastewater system; and 4. Limit discharges to the hours of 8:00 pm to 6:00 am. 10.05 Medical Waste Disposal 10.05.1 No user shall discharge medical waste to the POTW without first complying with all requirements of the California Medical Waste Management Act (California Health and Safety Code Sections 117600 - 118360) and obtaining written permission from the General Manager. The request shall be submitted to the General Manager and shall include: 1. The source and volume of the medical waste; 2. The procedures and equipment used for disinfection of the medical waste; and 3. Employee training procedures for the legal disposal of the medical waste. 10.05.2 If the General Manager believes that the waste would not be adequately disinfected, the General Manager shall issue a written denial to the user and state the reasons for the denial. This denial shall be issued within thirty days from receipt of the written request. 10.05.3 If the General Manager believes that adequate disinfection of the waste can be achieved prior to discharge of the waste to the collection system, then conditional approval may be granted for the disposal of the waste. 10.05.4 If the user is granted permission for disposal of the medical waste, the user: 1. Shall adequately disinfect the medical waste prior to discharge to the POTW; 2. Shall not dispose of solid medical waste to the POTW, including hypodermic needles, syringes, instruments, utensils or other paper and plastic items of a disposable nature, or recognizable portions of human or animal anatomy; and 3. Shall be subject to periodic inspections to verify that all disinfection methods, procedures, and practices are being performed. 10.05.5 As authorized by the General Manager, wastewater generated from medically required life- saving operations, including but not limited to dialysis facilities, may be approved for disposal to the POTW. 10.06 Limitation on Wastewater Strength - No user shall discharge industrial wastewater to the POTW unless the wastewater conforms to the limitations and requirements of this Ordinance. Discharge limitations shall be revised as needed to ensure compliance of the Water Reclamation Plant effluent and bio-solids reuse in compliance with the EVWD Waste Discharge Requirements Permit. For Categorical Users, the EVWD may exercise one or more of the following options: 1. Where a categorical pretreatment standard is expressed in terms of either mass or concentration of a pollutant, the General Manager may impose equivalent concentration or mass limits; 2. When wastewater subject to a categorical pretreatment standard is mixed with wastewater not regulated by the same standard, the General Manager shall impose an alternate limit using the combined wastestream formula; and 3. A variance from a categorical pretreatment standard may be issued if the user can prove, that Ordinance 407 29 factors relating to its discharge are fundamentally different from the factors considered by the EPA when developing the categorical pretreatment standard. SECTION 11. INDUSTRIAL WASTEWATER DISCHARGE PERMITS 11.01 Application - Any person desiring to discharge industrial wastewater into the Public Sewer shall be required to submit an application to the General Manager presenting information as to the characteristics and amount of industrial wastewater to be so discharged. No industrial wastewater shall be discharged into the Public Sewer which will cause the effluent discharged from the sewage treatment facilities to violate any discharge requirement set by the California Regional Water Quality Control Board. All Significant Industrial Users, and all haulers of wastewater, shall apply for an Industrial Wastewater Discharge Permit (Permit) by completing and submitting to the District a Wastewater Discharge Permit Application, on a form provided by the District. Non-Significant Industrial Users shall, at the discretion of the District’s General Manager, apply for an Industrial Wastewater Discharge Permit. The District will determine which type of permit, either individual control mechanism or group (general) permit, is best suited to control the discharge. The District will also determine the appropriate Permit Classification as listed in Section 11. 11.02 Permit Classifications Industrial Users shall apply for, and obtain, the appropriate class of Permit as indicated below: Permit Class Industrial Users I Significant Industrial Users as defined herein II Non-Significant Category III Non-Significant Industrial Users as defined herein IV Temporary Industrial Users as defined herein V Dry Categorical as defined herein VI Trucked or hauled wastewater as defined herein 11.02.01 When to Apply:  Significant Industrial Users, who propose to connect or discharge to the POTW in the future shall apply for a Permit at least 90 days prior to commencing discharge;  Non-Significant Industrial Users, required to obtain a Permit, who propose to connect or discharge to the POTW in the future shall apply for a Permit at least 60 days prior to commencing discharge;  Temporary Industrial Users, required to obtain a Permit, who propose to connect or discharge to the POTW in the future shall apply for a Permit at least 30 days prior to commencing discharge;  Any Industrial User who is required to have a Permit but whose discharge commenced prior to the date of adoption of this Ordinance shall apply for a Permit within 60 days after adoption of this Ordinance; or Ordinance 407 30  Applications for re-issuance of Permits shall be submitted at least 90 days prior to the expiration of the Permit. 11.03 Contents of Permit Application - Permit applications shall, at a minimum, contain the following information:  Name and address of applicant and location of place of discharge;  SIC number according to the Standard Industrial Classification Manual, U.S. Office of Management and Budget, 1987, as amended or NAICS number;  A list of wastewater discharge constituents and characteristics, as determined by a State certified analytical laboratory using Analytical Methods as defined herein and sampling procedures, including but not limited to, those subject to Specific Local Discharge Limitations and Categorical Standards;  Time and duration of discharge(s);  Average daily, peak daily, and 15-minute peak wastewater flow rates, including daily, monthly and seasonal variations, if any;  Site plans, floor plans, mechanical and plumbing plans, including details showing all sewers, sewer connections, treatment facilities and appurtenances by the size, location and elevation;  An 8-1/2" X 11" process flow schematic diagram;  Descriptions of activities, facilities and plant processes on the premises;  Descriptions of all solid and liquid substances used or stored on the premises that are or could be discharged to the POTW;  Number and type of employees and hours of plant operation, and proposed or actual hours of pretreatment system operation;  A time schedule for compliance with any provisions of the Ordinance or Categorical Standard for which immediate compliance is not possible;  A list of any environmental control permits held by or for the User's facility, and a copy of the County "Business Emergency Plan" which addresses the location, type and quantity of hazardous materials handled by the User;  All applicable Best Management Practices;  Initial applications for a Class I Permit (Categorical Industrial User) shall include a Baseline Monitoring Report as described in Section 13;  Signature and certification in accordance with Section 13; and  Any other information necessary to evaluate the permit application. 11.04 Permit Evaluation 11.04.01 The General Manager will evaluate the data furnished by the User and may require additional information, such as critical parameter reporting. After evaluation of the data furnished, the General Manager may issue a wastewater discharge permit subject to the terms and conditions provided herein. 11.04.02 If the General Manager determines that the proposed discharge will not be acceptable, he shall disapprove the application and shall notify the applicant in writing, specifying the reason(s) for Ordinance 407 31 denial and the applicable appeals process. The applicant may submit a revised permit application for the evaluation of the General Manager. 11.05 Permit Contents - Permits, whether individual (site specific) or general (group), shall contain at least the following:  Statement of permit duration.  Statement of permit non-transferability.  Statement of prohibited discharges and other applicable effluent limitations including Best Management Practices.  Statement of applicable administrative, civil, and criminal penalties for violation of Pretreatment Standards and Requirements.  A schedule of Pretreatment Program fees and charges.  Limitations on the average and/or maximum wastewater constituents and characteristics.  Specifications for self-monitoring, which may include: pollutants to be monitored; sampling location(s); frequency of sampling; sample type(s); number, types, and standards for tests; and reporting schedule; and may include total Toxic Organic monitoring.  Compliance Time Schedule(s) where required.  Depending on the specific nature of the permitted facility and discharge, a permit may also contain the following: 1. Limitations on average and/or maximum flow rates. 2. Requirements for installation and maintenance of inspection and sampling facilities. 3. Requirements for installation and maintenance of spill containment systems. 4. Requirements for submission of technical or discharge reports. 5. Requirements for maintaining and retaining plant records relating to the wastewater discharge. 6. Requirements for notification of slug or accidental discharges, and/or discharges of hazardous waste. 7. Requirements for submittal of slug discharge control plans and/or solvent management plans.  Other conditions as deemed appropriate by the District to ensure compliance with this Ordinance. 11.06 Permit Modifications 11.06.01 General - The limitations or requirements of the permit shall be deemed automatically modified if limitations or requirements are modified by operation of law or just cause exists. The User shall be informed of any such modifications and shall be given a reasonable time schedule for compliance. 11.06.02 Promulgation of Categorical Standards: 11.06.02.1 Affected Users shall apply for modification of their Permits upon promulgation of a new or revised Categorical Standard, and shall comply with such Standard within the time frame prescribed therein. Within 180 days after Ordinance 407 32 the promulgation of new or revised the Categorical Standard, they shall submit to the District a time schedule for compliance with the Categorical Standard. 11.06.02.2 Where an affected User has not previously submitted an application for a permit as required by Section 11, the User shall submit a completed application to the District within 180 days after the promulgation of the applicable Categorical Standard. 11.06.02.3 Changes in Operation: Industrial Users shall apply for and obtain necessary and appropriate Permit modifications prior to initiating any changes in the User's operation that may cause a change in quantity or quality of the User's discharge. For the purposes of this section "changes" shall mean the following: An increase of 25% or more in the quantity of industrial wastes discharged, the addition of new waste-generating processes, the addition of different waste-generating equipment, or the addition of process equipment that results in an increase in production capacity. 11.07 Permit Transferability - Nondomestic Wastewater Discharge Permits are issued to specific Users for specific operations. A Nondomestic Wastewater Discharge Permit shall not be transferred, either from one location to another or from one User to another. Concurrently with a change in ownership, the new owner shall apply for a new Nondomestic Wastewater Discharge Permit. 11.08 Duration of Permit - Permits shall be issued for a term not to exceed three (3) years. 11.09 Permit Suspension or Revocation - The General Manager may suspend or revoke any permit if the user is in violation of any provision of this Ordinance or user permit. These violations include but are not limited to: falsification of any required information; denial of EVWD’s right to entry; failure to re-apply for a permit or request a required permit modification; failure to pay required permit fees or charges; or any discharges in violation of this Ordinance. The General Manager may suspend or revoke the permit upon a minimum notice of fifteen calendar days when the General Manager finds the user violated any provision of this Ordinance or user permit. The permit suspension or revocation will result in them immediate suspension of all discharge rights and privileges as specified in this Ordinance. All costs associated with the permit suspension or revocation, and any reissuance of the permit, shall be paid by the user. 11.10 On Site Accessibility - The permitted Industrial User shall maintain a copy of the current Permit readily accessible at the site of nondomestic wastewater discharge at all times. 11.11 Authority - Permits shall be expressly subject to all provisions of this Ordinance and all other applicable regulations, charges and fees established by District resolution or ordinance. The General Manager may include some or all of the following as conditions in any Industrial Waste Permit: 11.12 Pretreatment of Industrial Waste - The General Manager may require pretreatment of the industrial waste to an acceptable condition prior to discharge to the Public Sewer. The design and installation of any pretreatment plants and equipment shall be subject to the review and approval of the General Manager and the requirements of all applicable codes, ordinances, laws, and regulations. 11.13 Quantities and Rates - The permit may require that the Owner exercise specific control over the quantities and rates of discharge. If necessary, the Owner shall install an approved flume and automatic recording devise for the purpose of measuring flow and flow rates. 11.14 Gravity Separation Interceptors - The Owner may be required to install, maintain and use Grease and/or Ordinance 407 33 Sand Gravity Separation Interceptor as specified in the Uniform Plumbing Code, or as specified, modified or superseded by the District Ordinances, Rules and Regulations. 11.15 Costs For Additional Treatment - If in the opinion of the General Manager, the Industrial Waste will require additional handling and treatment by the District, the Industrial Waste Permit shall include a special agreement or arrangement between the District and the Permittee whereby an industrial waste may be accepted by the District for treatment, subject to payment of the added cost for this handling and treatment as established by the Board. 11.16 Control Manholes - When required by the General Manager, the Owner of any property served by the Building Sewer carrying industrial wastes shall install a suitable control manhole in the Building Sewer to facilitate observation, sampling and measurement of waste. Such manhole shall be installed by the owner at his expense and shall be maintained to be safe and accessible at all times. 11.17 Measurements and Tests - All measurements, tests and analyses of the characteristics of waters and wastes to which reference is made in this Ordinance shall be determined in accordance with the latest edition of "Standard Methods” and shall be determined at said Control Manhole. In the event that no Control Manhole has been required, the Control Manhole shall be considered to be the nearest downstream manhole in the Public Sewer to the point at which the Building Sewer is connected. 11.18 Maintenance of Equipment - All pre-treatment system, flow measuring equipment, flow equalization device, grease or sand interceptor or separator, or other equipment or device required by the Industrial Waste Permit shall be continuously maintained in satisfactory and effective operation at the Owner's expense. SECTION 12. PRETREATMENT FACILTY REQUIREMENTS 12.01 Pretreatment of Nondomestic Wastewaters - Users shall provide, at their sole cost and expense, all wastewater pretreatment needed to comply with this Ordinance and all applicable Categorical Standards within the time limitations specified therein. Detailed plans showing the pretreatment facilities and operating procedures shall be submitted, reviewed and approved by the District before construction of the facilities. The District's approval of such plans and operating procedures shall not relieve the User from the responsibility of modifying the facilities as necessary to produce an effluent which complies with all provisions of this Ordinance, applicable Categorical Standards and State and Federal laws, rules, and regulations. 12.02 Monitoring Facilities - The District may require, at the User's expense, the installation and operation of monitoring facilities to allow inspection and sampling of discharges to the sewerage system. The monitoring facilities shall include a suitably designed control structure and other such sampling, monitoring, and flow- metering equipment as are necessary to facilitate safe inspection and sampling and accurate monitoring. The control structure shall be watertight, structurally sound, and durable. The monitoring facilities, including sampling, monitoring, and flow measuring equipment, shall be always maintained in a safe and proper operating condition at the expense of the User. Monitoring facilities shall normally be situated on the User's premises, but when such a location would be impractical or cause undue hardship on the User, the District may permit the facilities to be located within a District-owned or controlled right-of-way. If the control structure is inside the discharger's fence or other secure location, there shall be accommodations to allow access for District personnel, such as a gate secured with a lock, with key provided to the District. Ordinance 407 34 There shall be ample room and a 120 V power outlet in or near monitoring facility to allow installation of portable sampling and monitoring equipment by District personnel. Whether located on public or private property, the sampling and monitoring facilities shall be constructed in accordance with the District's requirements and all applicable local construction standards and specifications. Construction Drawings for proposed monitoring facilities shall be approved by the District prior to construction. Construction shall be completed within 90 days following written approval by the District, unless the District grants a time extension. 12.02.01 Monitoring Requirements - Industrial Users may be required by the District to collect representative samples and have them analyzed for the purpose of determining compliance with established wastewater discharge limitations. Permits will contain specified times for said monitoring. 12.02.02 Automatic Re-Sampling Requirement - In the event that sample data indicates non- compliance with any District standard or limitation, said user will be required to resample for those pollutant parameters that indicate non-compliance and submit new analytical results within 30-days of receiving the initial sample results which indicated non-compliance. 12.02.03 Additional Monitoring - If the Industrial User monitors at the approved sample point(s) more often than required by the District, using approved sample collection methods and analytical procedures, then the results must be reported to the District within 30-days of receiving the results. The automatic re-sampling requirement also applies to any additional sampling that indicates non-compliance. 12.03 Flow Monitoring Equipment - A Significant Industrial User with an average daily discharge flow of more than 10,000 gallons per day shall install and operate a continuous monitoring flow meter capable of measuring the User's discharge to the District's sewerage system as part of its Monitoring Facilities. The flow measuring device shall be of a type appropriate to the quantity and characteristics of the discharge and shall be equipped with a flow indicator reading in gallons per minute (gpm) and a flow totalizer reading in gallons. If installation of a wastewater discharge flow meter is not practical, the General Manager may permit the User to install an approved water meter on the water line or lines supplying the process(es) that generate(s) the discharge. 12.04 Pretreatment of Fats, Oils, and Grease 12.04.01 General - This section sets forth the requirements of the Districts FOG Discharge Control Program. The requirements of this section shall apply to all food service establishments (FSE) as defined in Section 3. 1. New Construction of FSEs - All new construction projects shall comply with these regulations immediately upon adoption by the Board of Directors of the East Valley Water District. 2. Existing FSEs - All existing FSEs that own and operate a GCD shall not be required to install a new GCD unless any of the following should occur: a. The FSE is determined to be the cause of a sanitary sewer overflow related to the discharge of FOG to the sewer system; b. The FSE is determined to be bypassing FOG to the sewer system; or c. The FSE experiences a change in any of the following: Ordinance 407 35 1. Changes in menu; 2. Changes in operating hours; 3. Changes in the maximum seating capacity; 4. Changes in the maximum meals served per peak hour; or 5. Changes in the equipment used. 12.04.02 Legal Authority - The District’s FOG Discharge Control Program is supported by this Ordinance, which gives the District the legal authority to prohibit discharges into the sewer system, authority to require installation of pretreatment (i.e. grease removal devices), authority to inspect grease producing facilities and authority to enforce these provisions. 12.04.03 Prohibited Discharges - It shall be deemed a violation of this ordinance for any FSE to discharge or allow to be discharged to the sanitary sewer any of the following: 1. Fats, Oil and Grease (FOG), including any liquid or other wastes containing FOG; 2. Grease Control Device (GCD) contents; 3. Waste Oil Container contents; 4. Drippings or spills from Outdoor Refuse Management and Containment Areas; and 5. Refuse, liquids and other waste from indoor and outdoor storage and wash areas and public or employee areas associated with a Food Facility. 12.04.04 Disposal of FOG - Plan and Schedule for Disposal of FOG within the Service Area. The District does not own or operate any FOG disposal facilities. The FSEs must, at a minimum, collect waste FOG and prevent its discharge into the collection system by implementing BMPs in accordance with Section 12.04.010 to reduce the amount of FOG requiring disposal. For waste FOG that is generated, it must be collected and stored properly in recycling barrels or drums in accordance with EVWD requirements. FSEs must use a licensed hauler or recycling facility to dispose of this waste. FSEs must save receipts for the proper disposal, which are reviewed during an FSE inspection conducted by Pretreatment Inspectors and Assistants. 12.04.05 Grease Control Device (GCD) Required - Unless otherwise approved by the District, FSEs shall install and maintain a GCD in accordance with this ordinance and the requirements set forth in the East Valley Water District Regulations for the Installation and Sizing of Grease Control Devices. 12.04.06 Waiver of Requirement to Install GCD - District may elect to issue a Conditional Waiver or require a under sink GCD as approved by the County of San Bernardino Department of Environmental Health Services, if it is determined that the FSE does not have the reasonable potential to cause an adverse effect on the POTW. However, the District may revoke the Conditional Waiver for the following reasons: 1. Changes in menu; 2. Falsification of information in the Food Service Establishment Permit Application; 3. Changes in operating hours; 4. Changes in the maximum seating capacity; Ordinance 407 36 5. Changes in the maximum meals served per peak hour; 6. Changes in the equipment used; 7. Changes in the quantity or quality of the wastewater discharged; or 8. Increased sewer line maintenance or sanitary sewer overflows (SSOs) which are attributed to the FSE’s wastewater discharge. 12.04.07 Food Service Establishment (FSE) Permit Required - All FSEs, are required to submit a Food Service Establishment Permit Application to the District before discharging any wastewater to the sewer system. 12.04.08 GCD Installation and Sizing Requirements - GCDs shall be installed and sized in accordance with the requirements set forth in the East Valley Water District Regulations for the Installation and Sizing of Grease Control Devices. 12.04.09 GCD Maintenance Requirements - Any person, property owner, or FSE that owns, operates, or maintains a GCD shall maintain it properly. 1. The GCD shall be cleaned as often as necessary but not less than once every 90 days to ensure that sediment and floating materials do not accumulate to impair the efficiency of the GCD and odors do not cause a public nuisance. A GCD is considered to be in violation under the following conditions: 2. Odors generated from the GCD cause a public nuisance. 3. The GCD is not in good working condition and appears to be malfunctioning or bypassing. 4. The GCD contains FOG and solids accumulation exceeding its rated capacity as documented by the manufacturer through third party test reports, or in the absence of that, twenty-five percent (25%) of the design hydraulic depth of the GCD. 5. The wastewater discharged from the FSE is determined to contain more than 250 mg/L of oil and grease. 6. When a GCD is cleaned, it must be pumped out completely and the removed sediment, liquid, and floating material shall be lawfully disposed of at a facility legally approved to accept such waste. 7. The user shall maintain a manifest for the removed GCD waste for a minimum of three years. The manifest shall include at a minimum: the name and address of the facility where the waste is removed, the disposal site for the GCD waste, the volume removed, and the date and time of removal. Failure to maintain and provide the required information may require the user to document the required information on an EVWD issued grease hauler manifest form. 8. The removed pretreatment waste shall not be reintroduced into the GCD or discharged into another GCD, or at another location which has not been approved by the District to accept such waste. 9. The use of chemicals to dissolve grease in a GCD is specifically prohibited. The owner, lessee, or sub-lessee, of any facility required to install an interceptor, and any proprietor, operator or superintendent of such facility are individually and severally liable for any failure of proper maintenance of such interceptor. Failure to maintain an GCD is a violation Ordinance 407 37 of this Ordinance and subjects the User to progressive enforcement actions in accordance with the approved Enforcement Response Plan. 12.04.10 Best Management Practices for FSEs: 1. All FSEs are required to implement BMPs to control the discharge of FOG to the sewer system and prevent SSOs. The BMPs are subject to approval by the District and at a minimum must include the following elements: a. Dispose food waste directly into approved disposal containers and not in sinks. b. Install drain screens on all drainage pipes. periodically clean the screens and dispose screened solids into trash or garbage cans. c. “Dry wipe” pots, pans, dishware and work areas prior to washing. Use rubber scrapers or paper towels to remove FOGs from cookware, utensils, and serving ware. d. Collect waste cooking oil and store properly in recycling barrels or drums. Use a licensed hauler or recycling facility to dispose of this waste. e. Use absorbent products to clean under fryer baskets and other locations where FOGs may be spilled or dripped. f. Train kitchen staff and other employees to follow BMPs. g. Post all applicable BMPs in the food preparation and/or dishwashing area. h. Observe proper GCD cleaning and maintenance procedures to ensure the device is properly operating. i. Comply with all other BMPs deemed appropriate by the District. 2. In the event an industrial user fails to comply with the requirements of this Ordinance, the District may take immediate enforcement action to reduce the risk of FOG entering the collection system by applying one or more appropriate enforcement action(s). The enforcement actions available to the District are outlined in Enforcement Response Plan (ERP), and an individual ERP may be developed for the non-compliant FSE. 12.04.11 FSE Inspection Requirements - This Ordinance provides the authority to carry out all inspection, surveillance, and monitoring procedures necessary to make a determination on compliance or noncompliance by FSEs with pretreatment standards and requirements, independent of information supplied by FSEs. This Ordinance specifies that whenever it is necessary to make an inspection to enforce any of the provisions of, or perform any duty imposed by this or other applicable law, or whenever the District has reasonable cause to believe that there exists upon any premises any possible violation of the provisions of this section or other applicable law, or any condition which makes such premises hazardous, unsafe, or dangerous, the District or his/her designate is authorized to enter such property at any reasonable time and to inspect the same and perform any duty imposed upon the District or his/her designate by this section or other applicable law. To that end, FSEs shall comply with the following inspection requirements: 1. The District shall inspect the facilities of any user to ascertain whether all requirements of this Ordinance are being met. Persons on the premises shall allow the District ready access at all reasonable times to all parts of the premises for the purpose of inspection, sampling, Ordinance 407 38 and records examination. 2. The user shall ensure that there is always a person on site, during normal business hours, knowledgeable of the user’s processes and activities to accompany the District during the inspection. 3. The user shall provide immediate access when an emergency exists. 4. All pretreatment equipment shall be immediately accessible at all times for the purpose of inspection. At no time shall any material, debris, obstacles, or obstructions be placed in such a manner that will prevent immediate access to the pretreatment equipment. 5. No user shall interfere, with delay, resist or refuse entrance to the District when attempting to inspect any facility which discharges wastewater to the POTW. 6. Where a user has security measures in force which would require proper identification and clearance before entry into the premises, the user shall make all necessary arrangements so that, upon presentation of identification, the District will be permitted to enter, without delay. 7. The user shall make available for copying by the District, all records required to be kept under the provisions of This Ordinance. 12.05 Pretreatment for Vehicle and Equipment Servicing and Washing Facilities: 1. Any facility maintained for the servicing, washing, cleaning, or repair of vehicles, roadway machinery, construction equipment, industrial transportation or power equipment, and which discharges nondomestic wastewater to the public sewer, shall install and maintain a sand/oil separator. Oil/Sand Separators shall comply with the installation and sizing requirements of the California Plumbing Code. 2. Oil/Sand Separators shall be maintained properly. Accumulated sediment, petroleum oils, flammable liquids, or any other accumulations shall be periodically removed by a licensed hauler and disposed of at a licensed disposal site. Maintenance shall be performed not less than once per year. 3. The District will conduct routine inspections of facilities with Oil/Sand Separators to ensure they are being properly maintained in compliance with these requirements as required by this ordinance. Determinations of non-compliance shall subject facilities to the enforcement actions included in this ordinance. 12.06 Pretreatment of Dental Amalgam: 1. All owners and operators of dental facilities that remove or place amalgam fillings shall comply with the following BMPs: a. No person shall rinse chair-side traps, vacuum screens, or amalgam separators equipment in a sink or other connection to the sanitary sewer system. b. Owners and operators of dental facilities shall ensure that all staff members who handle amalgam waste are trained in the proper handling, management, and disposal of mercury-containing material and fixer-containing solutions. Training records shall be maintained and made available for inspection as described in Record Keeping and Reporting Section of this Ordinance. c. Amalgam waste shall be stored and managed in accordance with the instructions of the recycler or hauler of such materials. d. Bleach and other chlorine-containing disinfectants shall not be used to disinfect the vacuum line Ordinance 407 39 system. e. The use of bulk mercury is prohibited. Only pre-capsulated dental amalgam is permitted. 2. All homeowners and operators of dental vacuum suction systems, shall comply with the following: a. An ISO 11143 certified amalgam separator device shall be installed for each dental vacuum suction system. The installed device must be ISO 11143 certified as capable of removing a minimum of 95% of amalgam. The amalgam separator system shall be certified at flow rates comparable to the flow rate of the actual vacuum suction system operation. Neither the separator device nor the rated plumbing shall include an automatic flow bypass. For facilities that require an amalgam separator that exceeds the practical capacity or ISO 11143 test methodology, a non-certified acceptor will be accepted, provided that smaller units from the same manufacturer and of the same technology are ISO-certified. b. Amalgam separators shall be maintained in accordance with manufacturer recommendations. Installation, certification, and maintenance records shall be maintained and made available for inspection as described in Section 13. 3. The following types of dental practice are exempt this Section, provided that removal or placement of amalgam fillings occurs at the facility no more than three days per year: a. Orthodontics; b. Periodontics; c. Oral and maxillofacial surgery; d. Radiology; e. Oral pathology or oral medicine; f. Endodontistry; and g. Prosthodontistry. 4. All owners and operators of dental facilities shall submit an annual report for each facility to the superintendent on or before February 1st of each calendar year. The annual report shall contain information on the dental facility’s amalgam separator and its maintenance and shall require the dental facility to certify that it is in full compliance with this section. The annual report shall be on a form provided by the District. 5. The District will determine the maximum allowable copper limit for dental facilities in sewer permits issued to these facilities. If no limit is set in the permit, the maximum allowable limit for copper for dental facilities shall be 2.0 mg/liter. 12.07 Silver Recovery Pretreatment Systems - All industrial users who discharge wastewater to the POTW which is generated from the development of photographic film, film negatives, x-rays, or plate negatives shall install silver recovery pretreatment equipment, as required by the General Manager. The silver recovery equipment shall be capable of sufficiently removing silver from the fixer solution and any silver laden rinse water to meet the required local discharge limits specified herein. The photo developing solution shall be required to be separated, reclaimed, hauled by a licensed waste hauler to an approved disposal site and shall not be discharged to the silver recovery equipment. As required by the General Manager, the user shall install an approved sample collection device at the Ordinance 407 40 discharge end of the silver recovery equipment to facilitate the collection of representative wastewater samples. 12.08 Spill Containment Systems - A spill containment system is a system of dikes, walls, barriers, berms, secondary vessels, or other devices designed to contain spillage of the liquid contents of containers, in order to prevent such liquids from entering the Sewer System. Any person who uses or stores such liquids, other than pure water, in the vicinity of a floor drain or other opening to the Sewer System, such that spilled liquids might enter the Sewer System, shall install a spill containment system. Spill containment systems shall be constructed of impermeable and non-reactive materials with respect to the liquids being contained. Spill containment systems shall be designed to prevent the hazardous mixture of incompatible liquids in the event of failure of one or more containers. Spill containment systems shall conform to all State and County regulations and policies as to percent containment, container type, and size. The spill containment systems shall be sufficient to prevent the discharge of any bulk chemicals, raw materials, finished product, etc. to the POTW. Spill containment requirements include but are not limited to the following: 1. Spill containment systems for tanks, carboys, and vats shall consist of a system of dikes, walls, barriers, berms, or other devices approved by the General Manager which are designed to contain a minimum of 110% of the liquid contents of the largest container stored in the containment device. 2. Spill containment systems for drums and barrels may consist of individual spill containment skids, pallets, or other devices approved by the General Manager which are designed to contain a minimum of 110% of the entire contents of all containers stored in the containment device. 3. Spill containment systems shall be constructed of materials that are impermeable and non-reactive to the liquids being contained. 4. Outdoor spill containment systems shall be constructed with adequate covering to prevent the accumulation of water from inclement weather or irrigation within the spill containment device. 5. Spill containment systems shall not allow incompatible substances to mix and cause a hazardous situation in the event of a failure of one or more containers. 6. At no time shall a user use a spill containment system for the storage of waste other than from a spill generated from a contained liquid. 7. Liquid contained within the spill containment system shall be removed as soon as possible or as instructed by the General Manager to restore the capacity of the spill containment system to the original volume. 12.09 Industrial User Compliance Plans 12.09.01 Solvent Management Plans - Each permitted Industrial User who uses or stores significant quantities of chlorinated organic solvents onsite, and each Industrial User subject to promulgated Categorical Standards which include a Total Toxic Organic limitation, shall file a Solvent Management Plan with the District. A Solvent Management Plan shall demonstrate proper containment and disposal of solvents in order to assure compliance with the provisions of this Ordinance and applicable Categorical Standards. 12.09.02 Slug Discharge Control Plans - Each permitted Industrial User who stores significant quantities of liquids in the vicinity of floor drains or other openings to the Sewer System such that spillage of stored liquids could result in Slug Loading (as defined herein) or in any violation Ordinance 407 41 of the provisions of this Ordinance shall file a Slug Discharge Control Plan with the District. All Significant Industrial Users shall be evaluated for the need to develop a Slug Discharge Control Plan. The Plan shall contain at a minimum, the following elements: 1. Description of discharge practices, including non-routine batch discharges; 2. Description of stored chemicals; 3. Procedures for immediately notifying the POTW of slug discharges, and procedures for follow- up written notification to the District within 24 hours; 4. Procedures to prevent adverse impacts from Slug Discharges, including inspection and maintenance of storage areas, handling and transfer of materials, loading and unloading operations, control of plant site run-off, worker training, building of containment structures or equipment, measures for containing toxic organic pollutants (including solvents), and/or measures and equipment for emergency response; and 5. If requested by the General Manager, follow-up practices to limit the damage suffered by the POTW Treatment Plant or the environment by Slug Discharges. SECTION 13. RECORD KEEPING AND REPORTING REQUIREMENTS 13.01 Industrial User Record Keeping - All Industrial Users shall keep records of waste hauling, reclamation activities, monitoring, pH and flow measuring device calibration reports, sample analysis data, flow and pH meter chart recordings, records of pretreatment equipment maintenance, best management practices including but not limited to interceptor and clarifier maintenance and cleaning, correspondence with the District, and such other records as the District may reasonably require, on the site of wastewater discharge. All such records shall be available for inspection and copying by District personnel. All records must be kept for a minimum of three years or longer in the event a criminal or civil action is commenced. 13.02 Industrial User Reporting Requirements - Industrial Users are required to submit the following types of reports: 13.02.01 Report of Potential Problems - If, for any reason, pollutants are discharged at a flow rate or concentration that might cause Interference or Pass-Through, as defined herein, or which might result in a violation of Waste Discharge Requirements Permit requirements or requirements of this Ordinance, or create a hazard to District personnel, the Sewer System and/or the Public, the Industrial User shall orally notify the District immediately. The oral report shall be followed by a written report submitted to the District within five days. The User shall also repeat the sampling and analysis and submit the results of the repeat analysis to the District within 30 days. 13.02.02 Notification of Changed Discharge - Each Industrial User shall promptly notify the District in advance of their termination of discharge, or of any increase in the volume of their discharge beyond flow limits specified in their permit, or of any significant change in the character of pollutants in their discharge. Significant Industrial Users shall immediately notify the District of any changes at its facility that affect the potential for a slug discharge. 13.02.03 Notification of Hazardous Waste Discharge - Discharge of hazardous wastes is prohibited. However, should any discharge of hazardous wastes occur, the discharger shall observe the following notification procedures: 1. All Industrial Users shall notify the District, the EPA Regional Waste Management Ordinance 407 42 Division Director, and State hazardous waste authorities in writing of any discharge into the POTW of a substance, which, if otherwise disposed of, would be classified a hazardous waste pursuant to 40 CFR Part 261. 2. Such notification shall include the name of the hazardous waste as set forth in 40 CFR Part 261, the EPA hazardous waste number, and the type of discharge (continuous, batch, or other). 3. The notification shall also contain the following information to the extent such information is known and readily available to the Industrial User: an identification of the hazardous constituents contained in the wastes, an estimation of the mass and concentration of such constituents in the waste stream discharged during that calendar month, an estimation of the mass of such constituents in the waste stream expected to be discharged during the following 12 months, and a compliance plan with time schedule for ceasing discharge of all hazardous constituents. 4. The Industrial User shall provide the above-required notifications to the District no later than five days, and to the other agencies specified no later than 180 days, after the discharge of the hazardous waste. 5. In the case of new Federal regulations under Section 3001 of RCRA identifying additional characteristics of hazardous waste or listing any additional substance as a hazardous waste, the Industrial User shall notify the District, the EPA Regional Waste Management Division Director, and State hazardous waste authorities of the discharge of such substance within 90 days of the effective date of such regulations. 6. In the case of any notification made under these requirements, the Industrial User shall certify that it has a program in place to eliminate all hazardous waste discharge. 7. Dischargers of hazardous waste shall also comply with the reporting requirements specified in Division 20, Chapter 6.95 of the California Health and Safety Code. Self-Monitoring Reports - Significant Industrial Users are required to submit Self- Monitoring Reports at least once every six months, which shall contain a description of the nature, concentration, and flow of pollutants required to be reported by the District, and the time, date, and place of sampling and methods of analysis. Sampling for Self- Monitoring Reports shall be performed during the period covered by the report. Significant Industrial Users are required to report all monitoring results. All required analyses shall be performed by a State Certified Laboratory using Approved Analytical Methods as defined herein. 13.02.04 Other Reports - Any other reports required by California State Law or by the General Manager. 13.03 Categorical Industrial User Reporting Requirements - Categorical Industrial Users shall comply with the reporting requirements set forth in Section 12 and shall also submit Initial Baseline Monitoring Reports (BMRs) and Periodic Compliance Reports, and, if necessary for compliance with the provisions of the applicable Categorical Standard, Schedule Compliance Reports, And Final Compliance Reports. 13.03.01 Baseline Monitoring Report (BMR) - A Baseline Monitoring Report shall be submitted as part of any initial application for a Class I Permit to facilitate evaluation of initial compliance status with respect to Categorical Standards, and any modifications or conditions necessary to Ordinance 407 43 achieve full compliance with categorical standards. A Class I Permit Application and BMR shall constitute a Baseline Report. 1. Each Class I Permit Application and BMR submitted by a facility in operation prior to the effective date of this Ordinance shall include analysis reports of samples collected to demonstrate compliance with applicable Categorical Standards. The application shall also include a statement, signed by an authorized representative of the Industrial User, and certified as to accuracy by a qualified professional, indicating whether Pretreatment Standards are being met on a consistent basis, and, if not, whether additional operation and maintenance and/or additional pretreatment is required for the Industrial User to meet the Pretreatment Standards and requirements. 2. If immediate compliance with applicable Categorical Standards is not possible and additional pretreatment or operation and maintenance is necessary, the Class I Permit Application and BMR shall include a time schedule specifying the shortest time necessary to achieve full compliance. The full compliance date shall not be later than that specified in the applicable Categorical Standard. The time schedule shall contain dates for pretreatment equipment design completion, building permit submittal date, construction commencement date, construction updates, construction completion date, employee training completion date, and date of achieving full compliance. In no case shall the period between compliance milestones in the Compliance Time Schedule exceed nine months. New Sources (as defined herein) shall achieve compliance with all applicable Pretreatment Standards within 90 days of commencing discharge. 13.03.02 Schedule Compliance Reports - When the Class I Permit Application and BMR included a time schedule for achieving full compliance with Categorical Standards by a certain date, the applicant shall periodically submit Schedule Compliance Reports to demonstrate compliance with milestone dates specified in the time schedule. 1. Schedule Compliance Reports shall include, where applicable, analysis reports of samples collected to demonstrate compliance. 2. Schedule Compliance Reports shall be submitted at the completion of all major events necessary to achieve full compliance with Categorical Standards, but not less frequently than every 30 days. 3. Schedule Compliance Reports must be submitted within 14 days of a milestone date. 13.03.03 Final Compliance Report - The applicant shall submit a Final Compliance Report, if necessary, to demonstrate that full compliance with Categorical Standards has been achieved. 1. A Final Compliance Report shall include all information contained in a Class I Permit Application and BMR. 2. Final Compliance Reports shall be submitted within 90 days of achieving compliance with Categorical Standards. 3. Final Compliance Reports from New Sources (as defined herein) must be submitted within 90 days after the facility commences discharge. 13.03.04 Periodic Compliance Reports - Periodic Compliance Reports shall be submitted to demonstrate continued compliance with Categorical Standards. Ordinance 407 44 1. Periodic Compliance Reports shall include all monitoring data specified in the applicable Categorical Standard and any additional monitoring data obtained by the User. 2. Sampling for Periodic Compliance Reports shall be performed during the period covered by the Report. 3. Analyses shall be performed by a State certified laboratory using Approved Analytical Methods as defined herein. 4. Periodic Compliance Reports shall be submitted every six months in June and December of each year, along with the Self-Monitoring Report pursuant to Section 13 herein with the exception of the annual certification requirement by non-significant categorical industrial users. 13.04 Signatory and Certification Requirement - All reports and plans submitted to the District by Industrial Users pursuant to a permit condition or any section of this Ordinance shall be signed and dated by an authorized representative of the Industrial User. The signature shall accompany the following certification statement: "I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system, or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and belief, true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations". Analytical reports submitted directly to the District by a certified analytical laboratory at the request of the Industrial User for samples of wastewater collected at Industrial User facilities may be signed, dated, and certified by the laboratory manager in lieu of an authorized representative of the Industrial User. However, such reports shall be accompanied by a statement, signed, dated, and certified by an authorized representative of the Industrial User, as above, which verifies that the sample identified in the analytical report was collected on the date and time indicated at the location indicated, and using the method indicated on the analytical report. Said signed, dated, and certified statement may be included as part of the chain-of- custody form for the sample. 13.05 Public Access to Information - Except for data determined to be confidential under 40 CFR Part 2, all reports, data, and information submitted by Industrial Users to the District in accordance with the terms of this Ordinance shall be available for public inspection. All reports, data, and information submitted by Industrial Users to the District in accordance with the terms of this Ordinance shall be available without restriction to the EPA, the State Water Board, and the Regional Board. Any person requesting this information from the District shall be required, prior to receipt of the information, to pay the reasonable costs of reproduction incurred by the District. 13.06 Confidentiality - All information provided by a User or obtained by the District through monitoring and/or inspection shall be made available for public inspection, unless the User specifically requests confidentiality and can demonstrate to the General Manager that release of such information will violate the User's right to protection of trade secrets under applicable State law. Ordinance 407 45 Permits, permit applications; and data pertaining to wastewater discharge quality and quantity shall not be treated as confidential information. Requests for confidentiality must be submitted at the time of submission of the information or data to the District. If a request for confidentiality is granted by the General Manager, the information will be treated in accordance with the procedure in 40 CFR Part 2 (Public Information). If a request for confidentiality is rejected by the General Manager, the information will be made available for public inspection. SECTION 14. INSPECTION 14.01 Entry and Inspection - The General Manager may enter upon the premises of any User during reasonable hours for the purpose of inspecting the facilities to ensure compliance with this Ordinance. The General Manager may inspect facilities of any User who may be a generator of nondomestic wastewater or a discharger of commercial or industrial water softener brines, storm water, or other prohibited wastes to the POTW, to determine compliance with this Ordinance. Persons or occupants of premises where nondomestic wastewater is, or may be, created or discharged, shall promptly allow the General Manager ready access at all reasonable times to all parts of the premises for the purposes of inspection, sampling, examination and copying of records, taking photographs, and performance of any of his duties. Users shall permit the General Manager to place on the Industrial User's property such devices as are necessary to conduct sampling, inspection, compliance monitoring, and/or metering operations. Where a User has security measures in force that would require proper identification and clearance before entry into the User's premises, the User shall make all necessary arrangements so that upon presentation of suitable identification, the General Manager will be permitted to enter, without delay, for the purpose of performing inspection and sampling. Delays in allowing the District access to the User's premises shall be a violation of this Ordinance. 14.02 Inspection Warrants - In the event the District has been refused access to a building, structure, or property, or any part thereof, the General Manager is hereby authorized to obtain inspection warrant from a court of competent jurisdiction. SECTION 15. ENFORCEMENT 15.01 Responses to Violation - Whenever the General Manager finds that any person has violated or is violating this Ordinance, Pretreatment Standards, Categorical Standards or the Permit, the District will pursue enforcement actions in accordance with this Ordinance and the Enforcement Response Plan (ERP) adopted by the District’s Board of Directors. To the extent that the ERP is inconsistent with this Ordinance, then this Ordinance will take precedence. The General Manager, upon finding a violation, may employ any of the remedies set forth in this Section, subject to due consideration of the following: 1. The magnitude of the violation; 2. The duration of the violation; 3. The effect of the violation on the POTW'’s compliance with any Waste Discharge Order, Permit, or other requirements; 4. The effect of the violation on the operation of the POTW; Ordinance 407 46 5. The compliance history of the user; and 6. The good faith of the user. The General Manager may issue any of the following after consideration of the criteria listed above and the District’s ERP: 1. Notice of Violation; 2. Order to prepare a Specific Compliance Plan; 3. Order to comply with a Compliance Time Schedule; and 4. An Administrative Order, including: a. Order to Stop Work; b. Cease and Desist Order; c. Order to Implement Noncompliance Monitoring Program; d. Permit Suspension Order; e. Permit Termination Order; and f. Administrative Complaint. 15.02 Administrative Complaint - Refer to EVWD’s ERP Section III.A.11. 15.02.01 Civil Penalties - Refer to EVWD’s ERP Section III.A.12. 15.02.02 Judicial Review - Refer to EVWD’s ERP Section III.A.13. 15.03 Civil Liability for Violation - Refer to EVWD’s ERP, Section III.A.14. 15.04 Emergency Termination Service - Refer to EVWD’s ERP, Section III.A.16. 15.05 Annual Public Notice ff Significant Noncompliance - Refer to EVWD’s ERP, Section III.A.17. 15.06 Supplemental Enforcement Actions - Refer to EVWD’s ERP, Sections III.A.18 and III.A.19. 15.07 Protection From Damage - Refer to EVWD’s ERP, Section III.A.20. 15.08 Falsifying Information - Refer to EVWD’s ERP, Section III.A.21. 15.09 Issuance of Cease and Desist Orders - Refer to EVWD’s ERP, Section III.A.7. 15.10 Criminal Penalties - Refer to EVWD’s ERP, Section III.A.15. 15.11 Termination of Service - Refer to EVWD’s ERP, Section III.A.16. 15.12 Payment of Fees, Charges and Penalties - Payment of fees, charges, and penalties for violations shall be in accordance with the EVWD ERP, Section III.A.23. 15.13 Damage to Facilities or Interruption of Normal Operations - Refer to EVWD’s ERP, Section III.A.24. SECTION 16. MISCELLANEOUS PROVISIONS 16.01 Sale of By-Products - The District may sell or otherwise dispose of water, treated or reclaimed wastewater or any other by-product of District operations to private individuals, corporations, or public entities upon terms approved by the Board. 16.02 Amendments - The District may, from time to time, in its discretion, by Resolution or Ordinance, amend the rules and regulations governing the discharge of nondomestic wastes so as to keep the District in Ordinance 407 47 compliance with evolving State and Federal Law. 16.03 Severability - If any provision, paragraph, word, section or Section of this Ordinance is invalidated by any court of competent jurisdiction, the remaining provisions, paragraphs, words, sections and chapters shall not be affected and shall continue in full force and effect. 16.04 Conflict - Any Ordinances or Resolutions inconsistent or conflicting with any part of this Ordinance shall be subordinate to this Ordinance and this Ordinance shall take precedence to the extent of such inconsistency or conflict. 16.05 Variances - The Board may find that by reason of special circumstances, any provision of this Ordinances should be suspended or modified as applied to a particular circumstance, and may, by Resolution, order such suspension or modification for such circumstance during the period of such special circumstances or any part thereof. 16.06 Powers and Authorities of Inspectors - Any duly authorized employee of the District as determined by the General Manager shall carry evidence establishing the 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 for the purposes of inspection, reinspection, observation, measurement, sampling, testing and otherwise performing such duties as may be necessary in the enforcement of the provisions of the Ordinance, Rules and Regulations of the District. 16.07 Inspection and Sampling - The District may inspect the facilities of any User to ascertain whether the requirements of this Ordinance are being complied with by such User. Persons or occupants of buildings where wastewater is created or discharged shall allow the District or its representatives ready access at all reasonable times to all parts of the premises for the purposes of inspection and/or sampling or otherwise in the performance of any of their duties. The District shall have the right to install at the User's property such devices as are necessary to conduct sampling or metering operations. Where a User has security measures in force which would require proper identification and clearance before entry into their premises, the User shall make necessary arrangements with their security measures so that upon presentation of suitable identification, employees of the District shall be permitted to enter without delay for the purposes of performing their specific responsibilities. 16.08 Judicial Review Of Ordinance - Pursuant to Section 1094.6 of the Code of Civil Procedure, the time within which judicial review shall be sought concerning the adoption of this Ordinance is 90 days following the date on which the decision adopting it is final. The decision adopting this Ordinance is final on the date it is adopted. SECTION 17. CUSTOMER BILLING PROCEDURES 17.01 Establish Rates and Charges - The Board of Directors shall from time to time establish rates and charges for sewer and other service provided by the East Valley Water District by Resolution. 17.02 Charges - Sewer charges shall begin when a sewer service connection is installed. Thereafter, the District may transfer to the account which is established for such service any delinquent and/or unpaid charges from other closed or open accounts which are held by the customer and/or property owner with the District. 17.03 Liability for Sewer Service - The property owner shall be held liable for sewer service charges until such time as the District is notified in writing to transfer the account to another property owner. 17.04 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 31791.5, et.seq. Delinquency charges may be applied to unpaid liens. Ordinance 407 48 17.05 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 sewer service form. 17.06 Billing Period - The regular billing period will be monthly. 17.07 Opening and Closing Bills - Opening and closing bills for residential accounts less than the normal billing period shall be pro-rated. Commercial accounts shall be billed based upon actual water consumption. 17.08 Payment of Bills - Bills for sewer service shall be rendered at the end of each billing period and are due and payable upon presentation. If full payment is not received at the business office of the District on or before the final due date, the bill shall become past due and delinquent. 17.09 Delinquency Notice - A delinquency notice shall be mailed to customers whose accounts are delinquent, warning that service is subject to disconnection. The information that must be contained on the Delinquency Notice and the procedures for disconnecting service for non-payment are contained in the District’s Policy for Discontinuation of Residential Water Service and in Sections 10 through 12 of the District’s Water Regulations and Service Ordinance. 17.10 Removal of Delinquency - At the end ofOnce each calendar year customers may request that the District remove one delinquency from the record of their account when one or more delinquencies have occurred during the previous 12 months. 17.11 Legal Action - All unpaid rates and charges and penalties herein provided may be collected by legal action or collection agency. 17.12 Costs - Defendant shall pay all costs of legal action in any judgment rendered in favor of District including reasonable attorney fees. 17.13 Discontinuing Service - Customers desiring to discontinue service should notify the District prior to vacating the premises. Owners shall be liable for on-going charges between tenancy, and in the event of sale, up to the recording date of title to the property being 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. 17.14 Collection with Other Utility Charges of Entity - Where the person charged is a user of another utility owned and operated by the District the charges shall be collected together with and not separately from the charges for the other utility service rendered by it. They shall be billed upon the same bill and collected as one item. SECTION 18. COMPLAINTS AND DISPUTED BILLS 18.01 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 sewer service, District rules, regulations, resolutions, or ordinances, or to dispute the accuracy of a bill for service or other charges. 18.02 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. 18.03 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. 18.04 Unresolved Disputes - If the customer is unable to resolve his/her 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. Ordinance 407 49 18.05 Appearance 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 Secretary in writing prior to the Board meeting of the date he/she would like to attend and what the dispute regards. The customer may then present the complaint and any evidence in support of his/her position and ask for a decision by the Board. 18.06 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. 18.07 Further Delays - Any further delays must be freely and willingly agreed to by the customer. 18.08 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 the customer's 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. 18.09 Discontinuance of Service - No sewer or other service shall be discontinued pending the final resolution of a dispute. SECTION 19. DISCONNECTION FOR NON-PAYMENT 19.01 Disconnection for Non-Payment - Sewer service shall be discontinued if payment for sewer service is not made within sixty (60) calendar days of the date of mailing a delinquent notice. Disconnection of sewer service for non-payment shall be governed by the District’s Policy on Discontinuation of Residential Water Service. At no time shall the District discontinue sewer service at a time when the District offices are closed. 19.01.01 Tenant Occupied Property - If sewer and other services to an account, where the tenant is shown as the Customer of Record, are discontinued for non-payment, the account will be revised 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 consent of the property owner, or if an account in the property owner’s name is subject to disconnection. 19.02 Complaint Procedure 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 10 herein. 19.03 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. 19.04 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. 19.05 Service Charges for Violations - If sewer 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 either by cash, payment card, money order, or cashier’s check. 19.06 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 sewer service from being disconnected for delinquency. Ordinance 407 50 19.07 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 20. ADDING DELINQUENT CHARGES TO TAX ROLL 20.01 Report of Delinquent and Unpaid Charges - A report of delinquent and unpaid charges for sewer and other services which have been 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. 20.02 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 Assessor 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 finally adopted and approved by the Board of Directors and that the County Assessor shall enter the amount of such charges against the respective lots or parcels of land as they appear on the current assessment roll. 20.03 Collection of Delinquent and Unpaid Charges - The amount of any charges for sewer and/or other services included in the report prepared and submitted pursuant to Sections 20.01 and 20.02 above shall be added to, and become a part of, the annual taxes next levied upon the property upon which the sewer service 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 19.04 above. SECTION 21. CHARGES AND DEPOSITS 21.01 Adoption - The amount of all charges and deposits described herein shall be updated in the District’s Schedule of Water and Wastewater Rates and Charges and adopted by separate Board Resolution. 21.02 Security Deposit - The Security Deposit insures payment of minimum District charges. Upon discontinuance of service, the security deposit shall be applied to reduce any unpaid charges outstanding on any accounts held by the customer with the District. The security deposit shall be refunded to the customer as provided in Section 8.04.02 herein. 21.03 Service Initiation Charge - The service initiation charge is a non-refundable charge which covers the reasonable District costs for initiating sewer service. 21.04 Monthly Sewer Charge - The monthly sewer charge includes, 1) Collection Charge established to maintain the District’s wastewater collection lines, and 2) Treatment Charges established for the operation and maintenance of wastewater treatment and reclamation facilities. The collection charge, also referred to as the sewer system charge, shall apply whether or not premises connected to the collections system are occupied. 21.05 Delinquent Charge - A delinquent charge shall be added to each delinquent account at the time any amount becomes delinquent, provided that no penalty charge shall be made on any account which at that 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 penalty charge shall become an inseparable part of the amount due as of that time. 21.06 Disconnection Notice Charge - The disconnection notice charge is the charge which covers reasonable District costs to notify customers that their sewer service is subject to impending termination. Ordinance 407 51 21.07 Service Reconnect Charge - The service reconnect charge is the charge which covers the reasonable District costs of disconnection and reconnection of service connections which are in violation of the provisions contained herein. 21.08 Returned Payment Fee - The returned payment fee is a charge which covers the reasonable administrative cost and banking charges for processing a returned check, or to respond to a disputed charge where a payment card was fraudulently used to make payment on an account. 21.09 Wastewater Capacity Charges - The Wastewater capacity charge is a charge for connecting to the District’s existing sewer system and for that incremental portion of the system’s capacity that will be used by the new connection. Accessory Dwelling Units (ADU) added to a parcel with an existing primary residence will not be subject to the Capacity Charge unless the ADU exceeds 750 square feet in size. If the size of the ADU does make it subject to this charge, the amount of the charge will be calculated based on the size of the ADU proportional to the size of the primary residence. Such regular charge shall be paid in advance by the applicant. 21.10 Verification Charge - The verification charge is the charge which covers reasonable District costs to make follow up attempts to contact the customer by mail, and attempts to make personal contact, and to verify and mark the location of the sewer service lateral. 21.11 Inspection Charge - Where a customer service connection or facility requires inspection by District personnel, the customer shall be charged for such inspection. 21.12 Special Facility Charge - A Special Facility Charge shall be required for development of limited-service areas whenever special facilities 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 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. 21.13 Engineering / New Development Service Charges - The following Engineering / New Development planning service charges are fees for the District's time and effort spent on assisting customers who have a requirement to construct sewer extensions, or other sewer facilities, that must meet District needs and conform to District Standards. These fees include:  Drafting of an Availability Letter  Construction Inspection  Drafting/preparing revisions to a Development Agreement  Development and Engineering Research  Development Meeting  Easement / Quitclaim Processing  Water / Sewer Inquiry  New Construction Chlorination and Flushing  Water Quality Sampling Ordinance 407 52  Plan Checking  Drafting a Will Serve Letter 21.14 Sewer Permit Charge - The sewer permit charge is the charge to cover the District's cost to review, approve and process an applicant's request to connect to the District's sewer facilities. 21.15 Sewer Manhole Deposit - The refundable sewer manhole deposit is used to ensure that manholes are constructed to final grade before the project is considered complete. The District will accept a Guarantee Bond in lieu of a cash deposit. The fee will be returned or the Bond released when sewer manholes are constructed to final grade by the Developer's contractor and verified by the District. 21.16 Landscape Adjustment - The landscape adjustment is the adjustment to the sewage treatment and collection charge based upon the proportional amount of the customer's property irrigated through a domestic water meter. 21.17 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 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 22. EFFECTIVE DATE This Ordinance shall take effect and replace Ordinance No. 404 Adopted this 23rd day of October 2024. ROLL CALL: Ayes: Directors: Noes: Absent: Abstain: James Morales, Jr. Board President ATTEST: Michael Moore Secretary, Board of Directors October 23, 2024 Ordinance 407 53 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Ordinance No. 407 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held October 23, 2024. Michael Moore Secretary, Board of Directors Agenda Item #4e November 13, 20241 Meeting Date: November 13, 2024 Agenda Item #4e Public Hearing 1 2 4 4 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Adoption of Resolution 2024.12 - Updating the Schedule of Water and Wastewater Rates and Charges, Public Hearing RECOMMENDATION That the Board of Directors adopt Resolution 2024.12 - Updating the Schedule of Water and Wastewater Rates and Charges. BACKGROUND / ANALYSIS The Finance and Human Resources Committee reviewed the Capacity Fee Study completed by IB Consulting, at their November 4, 2024 meeting. The District is regulated to only collect rates and fees to cover the actual cost of water and wastewater service. The rates and fees are regularly evaluated to ensure they are accurate and fairly collect the required revenue to provide water and wastewater service. Fees are one-time costs incurred by various customer classes for specific purposes. One of the fees the District collects is the water and wastewater capacity fee. A water utility capacity fee, sometimes referred to as an impact fee or connection fee, is a one-time charge assessed by the District when a new connection is made to the water and wastewater system. This fee covers the cost of infrastructure needed to supply water to the new user without impacting existing customers. The purpose of the fee is to fund expansions or upgrades to the water supply, treatment facilities, storage, and distribution systems to meet the increased demand from additional connections. The capacity fees shift the cost burden of expanding capacity to new developments rather than existing customers. It is a one-time fee paid to the District prior to obtaining water and wastewater service. The capacity fees are changed annually to adjust for inflationary cost effects on construction cost. The District annually adjusts the fees based on the Construction Cost Index (CCI). However, the CCI has not adequately reflected the rising construction cost in the water/wastewater industry over the past several years. Recent engineering cost estimates for reservoir and well projects have shown that the District’s current water capacity fees fall short in collecting from development their share of the cost of new facilities. The District has completed an evaluation of the capacity fees to determine if they are collecting the fair share of cost from new customers. The District retained IB Consulting Agenda Item #4e November 13, 20242 Meeting Date: November 13, 2024 Agenda Item #4e Public Hearing 1 2 4 4 (IBC) to perform a Capacity Fee Study in accordance with industry standards and State regulations. The Capacity Fee Study utilizes two industry standard methodologies for developing Capacity Fees, which are the Incremental/Marginal Cost and the Buy-In methods. The Buy-In method recognizes that the District has already made investments in infrastructure that have the capacity to facilitate growth and asks new development to repay the District for those investments. The Incremental Cost method asks new development to pay for certain capacity projects included in Master Plans and the District’s Capital Improvement Program. The results of the study presented in the report show a significant change in assumptions since the last comprehensive study in 2019, causing proposed water fees to increase, and wastewater fees to decrease. The main reasons for these changes are explained below: •The rising cost of water facilities continues to outpace the annual adjustments to District fees based on the Construction Cost Index. In the current study, the cost of water storage and new water supply wells are more than twice the cost of assumptions made in the 2019 study. •Wastewater fees are lower for a couple of reasons, 1) the need to upsize certain sewer mains in the 2019 report is not identified as an immediate need in the current report because of the impact of conservation on sewer flows, and 2) the District has financed a larger portion of the Sterling Natural Resource Center creating a lower buy-in component for new customers/development. The Capacity Fee Study recommends an increase of $3,502 per equivalent dwelling unit for water and a decrease of $2,528 per equivalent dwelling unit (EDU) for wastewater. An equivalent dwelling unit is based on a typical single-family house. Developments that require larger meters pay a proportional higher cost based upon the flow rate of larger meters. Although the proposed change in total capacity fees is relatively small ($974/EDU), it allows the appropriate fees to be collected more accurately for the specific water and wastewater funds accordingly. Public notices about the capacity fee updates under consideration were posted in locally circulated newspapers both 14 and 7 days in advance of this public hearing. In addition, the Capacity Fee Study has been made available for public inspection at least 10 days prior to the hearing. Agenda Item #4e November 13, 20243 Meeting Date: November 13, 2024 Agenda Item #4e Public Hearing 1 2 4 4 AGENCY GOALS AND OBJECTIVES IV - Promote Planning, Maintenance and Preservation of District Resources B. Enhance Planning Efforts that Respond to Future Demands C. Dedicate Efforts Toward System Maintenance and Modernization REVIEW BY OTHERS This agenda item has been reviewed by Legal Counsel, the Finance & Human Resources Committee; and the Administration, Engineering, and Finance Departments. FISCAL IMPACT Approving the change in Capacity Fees will increase revenue that will be allocated to the water and wastewater reserves for system expansion projects. There will be no impact to the current year operating and capital budgets. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS 1. Presentation-EVWD 2. EVWD Resolution 2024.12 3. Exhibit A - Schedule of Water and Wastewater Rates and Charges 4. Exhibit B - IB Consulting Capacity Fee Study 5. Public Hearing Notice PUBLIC HEARING Brian Tompkins, Chief Financial Officer November 13, 2024 2 •One-time capital charges applied to new development to fund facilities needed to accommodate growth •“Growth pays for growth” •Existing customers should not be burdened with facility requirements for future customers •Generate equity through a fair share allocation of system facility costs between existing customers and growth •The District installed approximately 150 meters (equivalents) in 2023 CAPACITY FEES 3 COMPONENTS OF CAPACITY FEES Supply Storage Conveyance Conveyance Treatment Water Wastewater Treatment 4 EXAMPLE OF INCREMENTAL COST 1,000 Homes $3.6 Million 1 New Home= $3.6 Million 1,000 $3,600/Home for Reservoir= 5 Includes Buy-In Component + Incremental Component CAPACITY FEE METHODOLOGY: HYBRID Buy-In + Incremental Incremental Total Cost Total Capacity (Existing + New) Total Capacity Fee ($) New Connection DemandXBuy-In Total Cost 6 PROPOSED WATER CAPACITY FEE PER METER 7 WATER UTILITY SYSTEM: BUY-IN $ 394,612,596 2024 Accumulated Depreciation (2024 $) 192,688,455 REPLACEMENT COST LESS DEPRECIATION $ 201,924,141 $ 10,314,000 (5,793,420) TOTAL RESERVES $ 4,520,580 $ (22,635,000) SRF Plant 134 (5,134,777) TOTAL WATER OUTSTANDING PRINCIPAL $ (27,769,777) TOTAL BUY-IN COMPONENTS $ 178,674,944 METER EQUIVALENTS (ME) ÷ 29,474 SYSTEM BUY-IN PER ME $ 6,063 2020A & B Bonds EXISTING WATER CAPITAL ASSETS WATER CAPITAL-RELATED RESERVES (+) Capital Replacement Fund (-) Capacity Fee Fund WATER OUTSTANDING DEBT PRINCIPAL Capital Asset Replacement Cost (2024 $) 8 NEW WATER PROJECTS: GROWTH-RELATED Project Cost & Capacity CAPITAL PROJECTS PROJECTED COST [ A ] ALLOCATION BASIS [ B ] UNITS OF SERVICE [ C ] UNIT RATE [ D ] CONVERSION FACTOR [ E ] $ PER ME [ F ] = D x E New Reservoir $ 17,717,280 Reservoir Capacity 3,000,000 $ 5.91 609 $ 3,597 New Wells 10,000,000 New Well Capacity 2,880,000 3.47 609 2,115 $ 5,712 TOTAL 9 PROPOSED WATER CAPACITY FEE PER METER EQUIVALENT CAPACITY FEE COMPONENTS TOTAL ($ PER ME) System Buy-In Component $ 6,063 Incremental Component 5,712 TOTAL PROPOSED WATER CAPACITY FEE $ 11,775 10 PROPOSED WASTEWATER CAPACITY FEE PER EDU 11 WASTEWATER COLLECTION SYSTEM: BUY-IN $ 143,432,157 2024 Accumulated Depreciation (2024 $) 110,980,099 32,452,058$ $ 7,500,000 (7,320,860) 179,140$ $ 32,631,198 ÷ 29,500 $ 1,106 TOTAL BUY-IN COMPONENTS EQUIVALENT DWELLING UNITS (EDUs) COLLECTION SYSTEM BUY-IN PER EDU EXISTING WASTEWATER CAPITAL ASSETS WASTEWATER CAPITAL-RELATED RESERVES (+) Capital Replacement Fund (-) Capacity Fee Fund Capital Asset Replacement Cost (2024 $) TOTAL RESERVES REPLACEMENT COST LESS DEPRECIATION (RCLD) 12 WASTEWATER TREATMENT SYSTEM: BUY-IN $ 180,684,888 Accumulated Depreciation - $ 180,684,888 $ (4,205,000) SNRC - Rates (75%)(119,402,163) $ (123,607,163) $ 1,875,000 $ 1,875,000 $ 57,077,725 ÷ 6,400,000 245 $ 2,185 SYSTEM BUY-IN PER EDU 2020B Bonds EXISTING WASTEWATER CAPITAL ASSETS WASTEWATER CAPITAL-RELATED RESERVES WASTEWATER OUTSTANDING DEBT PRINCIPAL Capital Asset Replacement Cost (SNRC) (+) Debt Service Reserve - Growth TOTAL RESERVES REPLACEMENT COST LESS DEPRECIATION (RCLD) GALLONS PER EDU TOTAL WASTEWATER OUTSTANDING PRINCIPAL TOTAL BUY-IN COMPONENTS GALLONS OF CAPACITY 13 WASTEWATER TREATMENT SYSTEM: INCREMENTAL BUY-IN CAPITAL PROJECTS PROJECTED COST [ A ] ALLOCATION BASIS [ B ] UNITS OF SERVICE [ C ] UNIT RATE [ D ] = A / C GALLONS PER EDU [ E ] $ PER EDU [ F ] = D x E WWTP Filter Expansion $ 8,800,000 Operating Capacity 1,600,000 $ 5.50 245 $ 1,348 RESERVES PROJECTED COST [ A ] ALLOCATION BASIS [ B ] UNITS OF SERVICE [ C ] UNIT RATE [ D ] = A / C GALLONS PER EDU [ E ] $ PER EDU [ F ] = D x E Debt Service Reserve - Growth $ 1,875,000 Operating Capacity 1,600,000 $ 1.17 245 $ 287 OUTSTANDING DEBT/INTEREST PROJECTED COST [ A ] ALLOCATION BASIS [ B ] UNITS OF SERVICE [ C ] UNIT RATE [ D ] = A / C GALLONS PER EDU [ E ] $ PER EDU [ F ] = D x E Wastewater NPV Outstanding Interest $ 10,188,418 Operating Capacity 1,600,000 $ 6.37 245 $ 1,561 TOTAL GROWTH COMPONENTS $ 3,195 14 PROPOSED WASTEWATER CAPACITY FEE PER EDU CAPACITY FEE COMPONENTS TOTAL ($ per ME) Collection System Buy-In $ 1,106 Treatment System Buy-In 2,185 Incremental Component 3,195 TOTAL PROPOSED WATER CAPACITY FEE $ 6,486 15 $8,273 $11,775 $9,014 $6,486 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 Existing Proposed Wastewater Water PROPOSED CAPACITY FEE ¾” METER 16 •Public Hearing Notice Requirement •Adopt Ordinance 406 - Water Regulations •Adopt Ordinance 407 - Sewer Regulations •Resolution 2024.12 - Schedule of Rates/Charges •Update Water Capacity Fees •Update Wastewater Capacity Fees PROPOSITION 26 PUBLIC HEARING 10/30 Publish Public Hearing Notice 11/1 Documents Available 11/4 Finance & HR Committee 11/13 Public Hearing 11/23 Publish Changes in Newspaper QUESTIONS East Valley Water District Resolution 2024.12 Page 1 of 4 1 5 9 3 RESOLUTION 2024.12 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING A SCHEDULE OF RATES AND CHARGES FOR THE PROVISION OF WATER AND WASTEWATER SERVICE AND SUPERSEDING RESOLUTION 2024.08 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 31024, 31027, and 31101, the District’s Board of Directors adopted Ordinances No. 403406 and 404407 establishing the rules and regulations for sewer and water services, respectively, by the District; and WHEREAS, Ordinances 403 406 and 404 407 provide 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, 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 for the provision of water service and wastewater service by the District to implement the rules and regulations set forth in District Ordinance No. 403 406 and 404407, and to yield an amount sufficient to pay the operating expenses of the District, provide for repairs and depreciation of works owned or operated by the District, pay the interest on any bonded debt, and, so far as possible, provide a fund for the payment of the principal of the bonded indebtedness as it becomes due, and WHEREAS, at the request of the District, IB Consulting, LLC has prepared a Water, Wastewater, and Reclamation Rate Study Capacity Fee Study that outlines the need and basis for an adjustment to existing rates to continue to maintain and operate the District’s water, wastewater, and recycled water systems. The Rate Study Capacity Fee Study was presented to the Board of Directors at a duly noticed public meeting on May 15, 2024November 13, 2024; 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 rates and charges established by this resolution qualify as exceptions to the definition of a tax pursuant to Article XIIIC,§1 of the Constitution of the State of California; 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 rates and charges, consistent with applicable constitutional and statutory requirements; and East Valley Water District Resolution 2024.12 Page 2 of 4 1 5 9 3 WHEREAS, Article XIIID of the Constitution of the State of California provides that, in imposing or increasing any property-related fee or charge (which term was held by the California Supreme Court in July, 2006, in the case Bighorn-Desert View Water Agency vs. Virjil, to include charges for water delivery), an agency shall provide written notice by mail of the proposed fee or charge to the record owner of each identified parcel upon which the fee or charge is proposed for imposition, the amount basis of calculating, and reason for such proposed fee or charge, and the date, time, and location of a public hearing on the proposed fee or charge to be conducted not less than 45 days after the mailing of said notice, and Government Code Section 53755 provides for such notice to be given by mailing to the address where billing statements are customarily sent by the District; and WHEREAS, said mailed notice was given in compliance with Government Code § 53755, setting Wednesday, May 15, 2024, at the hour of 5:30 p.m. of said day in the Board of Directors Room of the District, 31111 Greenspot Road, Highland, California, as the time and place for a public hearing on the proposed increases in water rates and charges and any proposed new property-related rates and charges set forth in Exhibits “A” and “B” to this resolution; and WHEREAS, at the time set, the duly noticed public hearing was held and all persons interested were given an opportunity to be heard concerning the increases in property-related rates and charges and any proposed new property-related rates and charges; and WHEREAS, this Board of Directors has considered all protests presented to the District by owners of identified parcels against the proposed increases in property-related rates and charges and any proposed new property-related rates and charges; WHEREAS, the District also wishes to establish miscellaneous fees 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; 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 number of written protests presented to the District against the proposed increases in property-related rates and charges and any proposed new property-related rates and charges has been tabulated and does not constitute a majority of the number of owners of identified parcels. Section 21. It is hereby found and determined that the proposed changes to the Schedule of Rates and Charges are within the purposes set forth in Section 21080(b) of the Public Resources Code including but not by way of limitation, the purposes of (1) meeting operating expenses, (2) purchasing or leasing supplies, equipment or materials, (3) meeting financial reserve needs and requirements, and (4) obtaining funds for capital projects necessary to maintain service within existing areas, and therefore, that such changes are exempt from CEQA. East Valley Water District Resolution 2024.12 Page 3 of 4 1 5 9 3 Section 32. It is hereby found and determined that the rates and charges of the District are imposed on the basis of demand as determined by measurements including water metering and meter size, acreage or other demand-generation characteristics of properties requesting connection, and cost of service restoration, inspection and other services provided for all fees; that such rates, charges and fees are imposed upon the request for or use of services; and that the water user charges satisfy the criteria and requirements of Water Code Section 370 et seq. relating to allocation-based conservation water pricing. Section 43. It is hereby found and determined that the user charges and fees and regulatory fees established or increased hereby do not produce revenues exceeding the costs reasonably borne in providing the regulation, product or service and/or are used for debt service or qualified capital outlay projects. Section 54. The new and/or revised rate(s), fee(s) and/or charge(s) as set forth in Exhibits “A” and “B” attached to this resolution and by this reference incorporated herein are hereby adopted in conformity with the authority set forth in Section 14.01 of Ordinance 403406 and Section 21.01 of Ordinance 404407, and the corresponding rate(s), fee(s) or charges(s), if any, as set forth in Ordinances 403406 and 404407 currently in effect, are hereby superseded and Resolution 2023.152024.08 is hereby rescinded. Staff is directed to incorporate the hereby adopted new and/or revised rate(s), fee(s) and/or charge(s) into Exhibit “A” and “B” attached hereto. Section 65. That the provisions of this Resolution shall be effective November 13, 2024. Section 76. 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 13th day of November 2024. ADOPTED this 13th day of November 2024. ROLL CALL: Ayes: Directors: Noes: Absent: Abstain: James Morales, Jr. Board President East Valley Water District Resolution 2024.12 Page 4 of 4 1 5 9 3 ATTEST: Michael Moore Secretary, Board of Directors November 13, 2024 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2024.12 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held November 13, 2024. Michael Moore Secretary, Board of Directors EXHIBIT “A” EAST VALLEY WATER DISTRICT SCHEDULE OF WATER AND WASTEWATER RATES AND CHARGES UPDATED NOVEMBER 13, 2024 i Table of Contents Section 1: Water Service Charges .................................................................. 1 Monthly Water System Charge .................................................................... 1 Commodity Charges: Potable Water ........................................................... 2 Private Fire Protection Service .................................................................... 3 1. Commercial Standby Charge ........................................................................ 3 2. Fire Hydrant Flow Test Fee (per fire hydrant) ............................................... 3 Temporary Water Service Connection ......................................................... 4 Monthly Service Charge ................................................................................ 4 1. Commodity Charge ..................................................................................... 4 2. Meter Deposit ............................................................................................ 4 3. Temporary Service Meter Availability Charge (for reading) ............................. 4 4. Unauthorized Use of Water Charge .............................................................. 4 New Account Fees for Water Services ......................................................... 5 1. Security Deposit ......................................................................................... 5 2. Service Initiation Charge ............................................................................. 5 Miscellaneous Water Service Charges and Fees .......................................... 5 1. AMI Opt-Out Fee ........................................................................................ 5 2. Delinquency Charge .................................................................................... 5 3. Disconnection Notice Charge ....................................................................... 5 4. Meter Test Charge ...................................................................................... 5 5. Returned Payment Fee ................................................................................ 6 6. Service Reconnect Charge (after hours) ....................................................... 6 7. Service Reconnect Charge (business hours) .................................................. 6 Cross-Connection Control ............................................................................ 7 1. Backflow Installation Fee ............................................................................. 7 2. Backflow Inspection Fee (per inspection) ...................................................... 7 3. Initial Backflow Compliance Test (per device) ............................................... 7 ii 4. Backflow Annual Administration Fee (per device) .......................................... 7 Section 2: Wastewater Service Charges ......................................................... 9 Monthly Wastewater Charge ....................................................................... 9 Section 3: Developer Services ...................................................................... 11 Water Capacity and Connection Fees ......................................................... 11 Water Capacity Fees ................................................................................... 11 Water Connection Fees ............................................................................... 11 Service Installation Benchmark Costs ....................................................... 12 Wastewater Connection Fees..................................................................... 13 Fire Service Connection Charges ............................................................... 13 Developer Services’ Charges and Fees ....................................................... 14 1. Availability Letter ...................................................................................... 14 2. Construction Inspection Charge (per day or actual cost) .............................. 14 3. Development Agreement (per agreement or actual cost) ............................. 14 4. Development and Engineering Research Fee ($95 per hr; 4-hr min) ............. 14 5. Development Meeting Fee ......................................................................... 14 6. Easement/Quitclaim Processing (per easement) .......................................... 15 7. Fire Hydrant Installation Charge (actual cost or 5% of estimate) .................. 15 8. General Water/Sewer Service Inquiry ......................................................... 15 9. New Construction Chlorination and Flushing Fee ($355 min to actual cost) .... 15 10. Sewer Manhole and Valve Can Deposit ....................................................... 15 11. Special Facility Charge .............................................................................. 15 12. Water Main Extension Charge .................................................................... 16 13. Water Quality Sampling Fee (per sample) ................................................... 16 14. Water/Sewer Plan Checking Fee (per sheet) ............................................... 16 15. Water System Design Charge .................................................................... 16 16. Will Serve Letter ....................................................................................... 17 Section 4: Pretreatment Program ................................................................. 18 Penalties for Enforcement Response Plan Discharge Violations ................ 18 Penalties for Enforcement Response Plan Monitoring Violations .............. 20 iii Penalties for Enforcement Response Plan Reporting Violations ................ 21 Penalties for Enforcement Response Plan Permit Violations ..................... 22 Penalties for Enforcement Response Plan Miscellaneous Violations ......... 23 History of Revisions ....................................................................................... 25 1 Section 1: Water Service Charges Monthly Water System Charge The water system charge is the monthly availability charge applicable to all metered water services, and shall apply whether premises served by the meter are occupied. The charges, which vary by meter size, are established at the amounts listed in the table below. RATE EFFECTIVE DATE 1/1/2024 1/1/2025 1/1/2026 1/1/2027 5/8"25.49$ 27.52$ 29.18$ 30.94$ 3/4"32.74$ 34.62$ 36.70$ 38.91$ 1"47.24$ 48.83$ 51.76$ 54.87$ 1 1/2"83.50$ 84.35$ 89.42$ 94.79$ 2"127.00$ 126.97$ 134.59$ 142.67$ 3"243.01$ 368.48$ 390.59$ 414.03$ 4"373.52$ 901.23$ 955.31$ 1,012.63$ 6"736.05$ 1,433.89$ 1,520.02$ 1,611.23$ 8"2,041.16$ 2,854.65$ 3,025.93$ 3,207.49$ 10"2,041.16$ 4,630.48$ 4,908.31$ 5,202.81$ 12"2,041.16$ 5,695.98$ 6,037.74$ 6,400.01$ METER SIZE 2 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. RATE EFFECTIVE DATE TIERS 1/1/2024 1/1/2025 1/1/2026 1/1/2027 Tier 1 - Indoor Use $ 2.11 $ 2.19 $ 2.33 $ 2.47 Tier 2 - Outdoor Use $ 2.70 $ 2.84 $ 3.02 $ 3.21 Tier 3 - Inefficient Use $ 4.18 $ 4.10 $ 4.35 $ 4.62 Residential, Institutional, and Irrigation customers are billed using water budgets. For water budget-based rates, tThe District has three price tiers with increasing rates per unit. The number of units a customer is billed in each tier is determined by their unique water budget. See Section 10 of the District’s Water Regulation and Service Ordinance for an explanation of water budgets. Commercial customers are billed using a flat rate, where one rate applies to every unit of water used. Commercial customers were transitioned from budget-based to flat rates during fiscal year 2024-25. RATE EFFECTIVE DATE TIER 1/1/2024 1/1/2025 1/1/2026 1/1/2027 Commercial Flat Rate N/A $ 2.39 $ 2.54 $ 2.70 3 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. RATE EFFECTIVE DATE 7/1/2016 1/1/2025 1/1/2026 1/1/2027 5/8" 8.78$ 13.75$ 14.58$ 15.46$ 3/4" 8.78$ 13.84$ 14.68$ 15.57$ 1" 8.78$ 14.01$ 14.86$ 15.76$ 1 1/2" 13.18$ 14.36$ 15.23$ 16.15$ 2" 17.57$ 14.71$ 15.60$ 16.54$ 3" 26.35$ 15.41$ 16.34$ 17.33$ 4" 35.14$ 16.11$ 17.08$ 18.11$ 6" 52.70$ 17.51$ 18.57$ 19.69$ 8" 70.27$ 18.91$ 20.05$ 21.26$ 10" 87.84$ 20.31$ 21.53$ 22.83$ 12" 87.84$ 21.71$ 23.02$ 24.41$ METER SIZE 2. Fire Hydrant Flow Test Fee (per fire hydrant) The fire flow test charge is a flat rate esta blished 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 $270 to administer fire flow tests. 4 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 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 $2,700. 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. Temporary Service Meter Availability Charge (for reading) If a hydrant/construction meter is not available for a monthly reading as prescribed by the District, a fee of $100 will be charged for each month the meter is not read in order to cover the cost of correcting billing records. 4. 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 for a first occurrence and $1,000 for each subsequent occurrence. 5 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. Security Deposit A deposit of $150 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. 2. Service Initiation Charge The service initiation charge is a non-refundable charge of $35 per account, which covers the reasonable District costs for initiating water service. Miscellaneous Water Service Charges and Fees 1. AMI Opt-Out Fee This fee covers the cost to manually read the meter and will be charged when a customer requests to Opt-Out; that the District not install an Automated Metering Infrastructure (AMI) meter information unit to serve their property. 2. 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. 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. 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. 6 5. Returned Payment Fee A returned payment charge is a charge which covers the reasonable administrative cost and banking charges for processing a returned check, or to respond to a disputed charge where a payment card was fraudulently used to make pa yment on an account. 6. 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. 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. Summary of charges/fees for Miscellaneous Water Service: CHARGE OR FEE NAME CHARGE/FEE AMI Opt-Out Fee $13 (per month) Delinquency Charge 1.5% Disconnection Notice Charge $30 Fire Hydrant Flow Test Fee $270 (per fire hydrant) Meter Deposit $2,700 Meter Test Charge $65 Returned Payment Fee $25 Service Initiation Charge $35 (per account) Service Reconnect Charge (after hours) $150 Service Reconnect Charge (business hours) $50 Temporary Service Meter Availability Charge (for reading)$100 Unauthorized Use of Water Charge $500 (first occurrence) Unauthorized Use of Water Charge $1,000 (each subsequent occurrence) 7 Cross-Connection Control In order to prevent water from flowing backward into the District’s water distribution system, a backflow device must be installed by all commercial/irrigation and multi-family customers with four (4) or more units serviced. All backflow devices must be inspected upon installation and tested annually for compliance. Compliance testing may be performed by a certified backflow tester and results shall be submitted to the District. Installation of new backflow prevention assemblies are typically completed by the owner’s contractor, if staff performs the installation, it will be billed at actual cost. 1. Backflow Installation Fee The charge for installation will be based on actual cost to the customer, and will be billed accordingly. 2. Backflow Inspection Fee (per inspection) A fee of $145 will be charged for each standard backflow inspection of newly installed backflow prevention devices, in accordance with District Standards, and inspected by District staff. 3. Initial Backflow Compliance Test (per device) A fee of $145 will be charged to the customer for the initial backflow compliance test performed by certified District staff. 4. Backflow 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 annual administration fee will be assessed annually. 8 Summary of charges/fees for Cross-Connection Control: CHARGE OR FEE NAME CHARGE / FEE Backflow Installatio n Fee actual cost Backflow Inspection Fee $145 (per inspection) Initial Backflow Compliance Test $145 (per device) Annual Backflow Administration Fee $30 (per device) 9 Section 2: Wastewater Service Charges Monthly Wastewater Charge Wastewater charges consist of both a Collection (System) component and a treatment component, and include both fixed charges, and charges based on water usage. An explanation of how these charges apply to different customer classes is explained below. A. Residential Customers The collection and treatment charges for residential customers is a monthly fixed charge for each dwelling unit. Accounts with 1-3 dwelling units are classified as single- family residential customers; accounts with 4 or more dwelling units are classified as multi-family residential customers. The fixed monthly charges established for each of these customer classes are displayed in the following table: RATE EFFECTIVE DATE Collection Treatment Collection Treatment Collection Treatment Collection Treatment Single-Family Residential 16.32$ 26.77$ 16.70$ 29.79$ 17.21$ 32.77$ 17.73$ 36.05$ Multi-Family Residential 15.42$ 23.90$ 15.48$ 25.67$ 15.95$ 28.24$ 16.43$ 31.07$ 7/1/20267/1/2024 7/1/2025CURRENT B. Commercial / Non-Residential Customers The collection and treatment charges for non-residential customers consist of monthly fixed charges, assessed per account, and a volumetric charge assessed for each unit of water (HCF) used for the account during the billing period. The volumetric charge varies based on the strength/concentration factors of the wastewater discharged by commercial customers. Customers are assigned to a strength category based on industry standards. 10 Fixed Monthly Charges: RATE EFFECTIVE DATE Collection Treatment Collection Treatment Collection Treatment Collection Treatment 11.84$ 12.41$ 10.59$ 9.16$ 10.91$ 10.08$ 11.24$ 11.09$ 7/1/2025 7/1/2026CURRENT 7/1/2024 Volumetric Charges per HCF of Water Usage: RATE EFFECTIVE DATE Collection Treatment Collection Treatment Collection Treatment Collection Treatment Low Strength 0.41$ 1.11$ 0.77$ 2.19$ 0.80$ 2.41$ 0.83$ 2.66$ Medium Strength 0.54$ 1.76$ 0.77$ 2.54$ 0.80$ 2.80$ 0.83$ 3.08$ High Strength 0.54$ 3.92$ 0.77$ 3.96$ 0.80$ 4.36$ 0.83$ 4.80$ Mixed Use 0.41$ 1.11$ 0.45$ 1.29$ 0.47$ 1.42$ 0.49$ 1.57$ DISCHARGERS 7/1/2025 7/1/2026CURRENT 7/1/2024 11 Section 3: Developer Services Water Capacity and Connection Fees Water Capacity Fees A “Capacity Charge” is defined within GC 66013 as a charge for public facilities in existence at the time a charge is imposed or charges for new facilities to be constructed in the future that is of benefit to the person or property being charged. Capacity fees ensure new development pays its fair share to connect to the system and does not cause additional burdens to current customers. Capital and infrastructure costs required to meet new demand/connections should be paid by those creating the cost to be incurred. 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. Water Connection Fees The water meter connection charge is the charge for installation and materials between the service angle stop and customer connection side within the meter box. Such regular charge shall be paid in advance by the applicant. Cost varies based on market conditions for the requested meter size and type. Service line connections to the main are separate from this fee and would be an additional non-regular charge. Where there is a non-regular charge, the District reserves the right to require the applicant to deposit an amount equal to the estimated cost of such service connection. 12 METER SIZE CAPACITY CHARGE 3/4" T-10 8,273$ 11,775$ 3/4" Mach 10 8,273$ 11,775$ 1"13,788$ 19,625$ 1 1/2"27,574$ 39,250$ 2"44,118$ 62,800$ 3"137,867$ 196,250$ 4"344,667$ 490,625$ 6"551,466$ 785,000$ 8"1,102,931$ 1,570,000$ 10"1,792,262$ 2,551,250$ 12" 3,140,000$ Service Installation Benchmark Costs Installation charges will be estimated by the District based on availability of District staff to complete the work-site specific construction conditions and requirements. The costs in the table shown are benchmarks, or cost references to begin from, for a short or long- side service installation based on requested meter size. Permitting, paving/concrete costs, and non-typical conditions are not included and will need to be assessed per connection, on a case-by-case basis. If the applicant elects not to have District staff complete the installation, then an administrative fee of 5% of the estimate will be charged. METER SIZE SHORT SIDE LATERAL LONG SIDE LATERAL 3/4" T-10 6,005$ 11,030$ 3/4" Mach - 10 6,110$ 11,135$ 1" 6,035$ 11,060$ 1 1/2" 6,420$ 11,445$ 2" 6,640$ 11,665$ 3" 14,765$ 22,690$ 4" 17,210$ 25,135$ 6" 22,985$ 30,915$ 8" 24,470$ 32,395$ 10" 29,465$ 37,390$ 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 $ 275 $ 275 per connection Inspection Charge $ 100 $ 100 per connection (per visit) Capacity Charge $ 9,014 $ 6,486 per EDU or portion thereof CHARGE / FEE 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. Availability Letter A fee of $155 will be charged for a water or sewer verification letter inquiry. 2. Construction Inspection Charge (per day or actual cost) Where a customer service connection or facility requires inspection by District personnel, the customer shall be charged for such inspection at the rate of $905 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. 3. Development Agreement (per agreement or actual cost) A Development Agreement is required whenever a project will include the design and construction of water or sewer facilities which will be dedicated to the District. This $1,375 minimum fee will cover the cost to initiate and execute a Development Agreement with the District. 4. Development and Engineering Research Fee ($95 per hr; 4-hr min) This fee will provide funding for Engineering staff to conduct research of existing accounts, 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. Utility Requests and providing of As-builts or other locating documentation is not included in this fee. This fee also encompasses the District’s time and effort spent on assisting customers who have a requirement to construct water or sewer facilities, which must meet District needs and conform to District standards. 5. Development Meeting Fee (per meeting, after first meeting) This $475 per meeting fee will provide funding for Engineering staff to prepare for and attend, meetings with developers regarding their projects beyond the initial project consultation meeting and set-up. This fee will primarily impact larger, more complex developments which may require multiple coordination meetings with staff. 15 6. Easement/Quitclaim Processing (per easement) A minimum fee of $975 will be charged for review and recordation of each Easement or Quitclaim document. If complexity of the legal document requires more time, legal counsel, or land surveyor counsel, actual costs beyond the minimum will be collected. 7. Fire Hydrant Installation Charge (actual cost or 5% of estimate) 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, an administrative fee of 5% of the estimate will be charged. 8. General Water/Sewer Service Inquiry A fee of $75 will be charged for a Technician’s time for general inquiries for service to a parcel. This inquiry usually arises from realtors and small developers. 9. New Construction Chlorination and Flushing Fee ($355 min to actual cost) A minimum fee of $355 will be charged for new construction disinfection plan review, inspection, and flushing prior to sampling. 10. Sewer Manhole and Valve Can Deposit A refundable deposit of $1,500 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 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. 11. 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 16 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. 12. 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 Water/Sewer Plan Checking charges described below. 13. Water Quality Sampling Fee (per sample) A fee of $135 will be charged for each water quality sample taken for new construction. 14. Water/Sewer Plan Checking Fee (per sheet) This $800 fee is collected per sheet and is a minimum that will cover up to three in- house plan checks. When District personnel are not available, plan checking will be performed by third-party Engineers retained by the District. The hourly rate and estimate for three plan checks for third-party plan checkers will be established at the beginning of each third-party plan checking assignment. The minimum fee per sheet established can be collected initially to begin plan checking and the Developer will deposit the difference to cover the third-party’s plan check cost to the District. Should more than three plan checks be required, additional funds may be deposited to bill against, and hours will be billed at the Engineering Research Fee or the cost of the third-party Engineer. Plan checking costs shall be paid before plans are returned. 15. 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 the fee charged by 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. 17 16. Will Serve Letter Once a Developer has compiled or met all the items needed to make the request for a Will Serve Letter, per the Development Guidelines and Procedures Handbook, they may request and pay a minimum fee of $575 to review and evaluate the infrastructure needs for a proposed project within the District’s service area. Should additional time be required for reviewing the project information and to prepare the document, the hourly rate established for the Engineering Research Fee shall be assessed in addition to the minimum fee . Summary of charges/fees for Developer Services: CHARGE OR FEE NAME CHARGE / FEE Availability Letter $155 Construction Inspection Charge $905 (per day) or actual cost Development Agreement $1,375 (per agreement; min to actual cost) Development and Engineering Research Fee $95 (flat rate, per 4-hr min) Development Meeting Fee $475 (per meeting, after first meeting) Easement/Quitclaim Processing $975 (per easement) Fire Hydrant Installation Charge actual cost or 5% of estimate General Water/Sewer Service Inquiry Fee $75 New Construction Chlorination and Flushing Fee $355 (min to actual cost) Sewer Manhole and Valve Can Deposit $1,500 (per manhole); $500 (per valve can) Special Facility Charge Based on proportionate share of Developer or Landowner share of the installation of Special Facility Water Main Extension Charge Based on prevailing rates of time and material per District approved plans Water Quality Sampling Fee $135 (per sample) Water/Sewer Plan Checking Fee $800 (per sheet; 3 plan checks) Water System Design Charge actual cost + 10% for administrative costs Will Serve Letter $575 (min fee) 18 Section 4: Pretreatment Program The District performed permit related activities will include permit processing, inspections and monitoring. The following fees are anticipated to cover the annual costs for each class of dischargers for the Pretreatment Program. Class* Annual Fee I User $2,210 II User $1,210 III User $210 IV User $710 V User $410 VI User $360 *Descriptions of each user type are defined in the East Valley Water District Sewer Regulations and Service Charge Ordinance, definitions section. Penalties for Enforcement Response Plan Discharge Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty First Discharge Violation in a 12-month Period - No harm to POTW None Second Discharge Violation in a 12-month Period - No harm to POTW $100 NMP Violation(s) —Does not result in Acute Non- Compliance $100 19 NMP Violation(s) – Acute Non-Compliance $100, $100, $500, $1000, each subsequent violation Any discharge violation(s) that result in Quarterly SNC status $100, $100, $500, each subsequent violation Any discharge violation(s) that result in pass-through, sludge contamination, or interference $1,000 or as determined by District review Dilution of Waste stream — First offense None Dilution of Waste stream — Repeat offense(s) $100 Continuous pH Monitoring indicates noncompliance $100 Septic Waste Discharged at non-authorized site or in noncompliance with limitations at the POTW — First Offense $100 Septic Waste Discharged at non-authorized site or in noncompliance with limitations at the POTW — Repeat Offense(s) $100, $1,000 or as determined by the District Discharge of any prohibited Waste — First Offense $100 Discharge of any prohibited waste — Repeat Offense(s) $100, $100, $1000 or as determined by the District 20 Penalties for Enforcement Response Plan Monitoring Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty Failure to sample or resample within required timeframes — Doesn’t result in Acute Non-Compliance None Failure to sample or resample within required timeframes — Results in Acute Non-Compliance $100 Improper Sample Location — First offense None Improper Sample Location — Repeat offense(s) $100, $500 for subsequent violations Improper sample collection or analytical methods — First offense None Improper sample collection or analytical methods — Repeat offense(s) $100, $500 for subsequent violations Failure to monitor for all required pollutants — First offense None Failure to monitor for all required pollutants — Repeat offense(s) $100, $500, $1000 for subsequent violations Failure to properly maintain or operate Flow monitoring or pretreatment equipment — First offense. None Failure to properly maintain or operate Flow monitoring or pretreatment equipment— Repeat offense(s) $100, $500, $1000 for subsequent violations Failure to install required monitoring or flow equipment — First offense. $100 Failure to install required monitoring or flow equipment — Repeat offense(s) $100/day 21 Penalties for Enforcement Response Plan Reporting Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty Failure to maintain records or reports as required by permit — First offense None Failure to maintain records or reports as required by permit — Repeat offense(s) $100 Failure to submit records, reports, or correspondence — less than 5 days late None Failure to submit records, reports, or correspondence — between 5 and 45 days late. $100 Failure to submit records, reports, or correspondence — Over 45 days late – Significant Non-Compliance $100, $500, $1000 for subsequent violations Failure to report SMR Discharge violation — First offense None Failure to report SMR Discharge violation — Repeat offense(s) $100 Failure to report Slug Load or spill discharge violation — First offense & no harm None Failure to report Slug Load or spill discharge violation — Repeat offense(s) — No harm $100 Failure to report Slug Load or spill discharge violation – Harm $250, $500, $1000 and $1500 for subsequent violations Failure to submit additional monitoring — First offense None Failure to submit additional monitoring — Repeat offense(s) $100 22 Penalties for Enforcement Response Plan Permit Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty Failure to submit permit application or renewal by due date None Failure to submit permit application renewal before current permit expires $100 Failure to submit permit application that results in a permit reclassification $100 Failure to comply with any permit condition of requirement — First offense $100 Failure to comply with any permit condition or requirement — Repeat offense(s) $100, $500, $1000 for subsequent violations Unauthorized or Unpermitted Discharge — first offense — No harm to POTW None Unauthorized or Unpermitted Discharge — Repeat offense(s) — No harm to POTW $100 Unauthorized or Unpermitted Discharge — First offense — Harm to the POTW $100, $500, $1000 depending of severity Unauthorized or Unpermitted Discharge — Repeat offense(s) — Harm to the POTW $100, $500, $1000 or as determined by District review Failure to submit required permit information or any process modification — First offense None Failure to submit required permit information or any process modification — Repeat offense(s) $100 23 Failure to implement any plan required by the permit (i.e. slug load, spill prevention, TOMP, etc.) — First offense $100 Failure to implement any plan required by the permit (i.e. slug load, spill prevention, TOMP, etc.) — Repeat offense(s) $100, $500, $1000 for subsequent violations Penalties for Enforcement Response Plan Miscellaneous Violations The District may assess a penalty against a person or entity in compliance with the requirements of ordinances, and enforcement response plan guidelines. Violation & Circumstances Penalty Denial of entry to perform monitoring or inspections — first offense None Denial of entry to perform monitoring or inspections — Repeat offense(s) $100, $500, $1000 for subsequent violations Spill containment not present or inadequate — First offense None Spill containment not present or inadequate — Repeat offense(s) $100 Spill containment area not properly maintained — First offense None Spill containment area not properly maintained — Repeat offense(s) $100, $500, $1000 for subsequent violations Illegal water softening equipment installed — First offense None Illegal water softening equipment installed — Repeat offense(s) $100, $500, $1000 for subsequent violations 24 Failure to implement Best Management Practices (BMPs) — First offense None Failure to implement Best Management Practices (BMPs) — Repeat offense(s) $100, $500, $1000 for subsequent violations 25 History of Revisions DATE ADOPTED RESOLUTION UPDATED OR RESCINDED REVISION DATE EFFECTIVE 11/13/24 2024.12 2024.08 Update Capacity Fees 11/13/24 Pass- Through N/A N/A Update Capacity Fees (per Cost Construction Index)07/01/24 05/15/24 2024.08 2023.15 Update Water Charges 01/01/25 05/15/24 2024.08 2023.15 Update Miscellaneous Fees 07/01/24 05/15/24 2024.08 2023.15 Update Wastewater Charges 07/01/24 10/11/23 2023.15 2023.05 Update Water Capacity Fees 10/11/23 Pass- Through N/A N/A Update Capacity Fees (per Cost Construction Index)07/01/23 03/22/23 2023.05 2021.13 Addition of Pretreatment Program Penalties 04/01/23 Pass- Through N/A N/A Update Capacity Fees (per Cost Construction Index)07/01/22 08/11/21 2021.13 2021.07 Update AMI Opt-Out Fee 09/01/21 Pass- Through N/A N/A Update Capacity Fees (per Cost Construction Index)07/01/21 05/12/21 2021.08 2019.19 Update Water and Wastewater Charges 01/01/22 05/12/21 2021.07 2019.19 Update Miscellaneous and Development Fees 06/01/21 Pass- Through N/A N/A Update Capacity Fees (per Cost Construction Index)07/01/20 12/11/19 2019.19 2019.06 Update Miscellaneous and Capacity Fees 01/01/20 05/22/19 2019.06 2017.07 Update Water Charges 01/01/20 07/11/18 2018.12 2017.01 Update Wastewater Charges 08/12/18 05/24/17 2017.07 2017.01 Update Water Charges 07/01/17 01/25/17 2017.01 2016.05 Update Wastewater Treatment Charges and Renew 5-Year Pass- Through Provision 07/01/17 02/24/16 2016.05 2015.04 Update Wastewater Charges 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 Charges 06/01/15 IB Consulting, LLC 31938 Temecula Parkway, Suite A #350 Temecula, CA. 92592 November 13, 2024 Public Hearing Capacity Fee Study EXHIBIT "B" East Valley Water District – Capacity Fee Study Page | 2 TABLE OF CONTENTS Executive Summary ............................................................................................................................ 4 Overview ............................................................................................................................................. 5 Capacity Fee Methodology .................................................................................................................. 6 Capacity Fee Analysis - Water ............................................................................................................ 9 Updated Water Capacity Fees .......................................................................................................... 15 Capacity Fee Analysis - Wastewater ................................................................................................. 17 Updated Wastewater Capacity Fees ................................................................................................. 23 Appendix A – Water Asset Listing ..................................................................................................... 24 Appendix B – Wastewater Asset Listing ............................................................................................ 25 Appendix C – Debt Schedules ........................................................................................................... 26 TABLES Table 1 – Water Asset Summary ....................................................................................................... 10 Table 2 – Water Capital-Related Reserves ....................................................................................... 10 Table 3 – Water Outstanding Principal .............................................................................................. 11 Table 4 – Water Asset Value Adjustments ........................................................................................ 11 Table 5 – Existing Water System ....................................................................................................... 12 Table 6 – Water Asset Unit Rate ($ per ME)...................................................................................... 12 Table 7 – Water Adjustments ($ per ME) ........................................................................................... 13 Table 8 – Water Buy-In Calculation ($ per ME) ................................................................................. 13 Table 9 – Water Incremental Costs ................................................................................................... 13 Table 10 – Water Incremental-Cost Component ($ per ME) .............................................................. 14 Table 11 – Water Capacity Fee Summary ......................................................................................... 15 Table 12 – Proposed Water Capacity Fee ......................................................................................... 16 Table 13 – Wastewater Asset Summary ............................................................................................ 17 Table 14 – Wastewater Capital-Related Reserves ............................................................................ 18 Table 15 – Wastewater Outstanding Principal ................................................................................... 18 Table 16 – Wastewater NPV of Outstanding Interest ......................................................................... 19 Table 17 – Wastewater Asset Value Adjustments ............................................................................. 19 Table 18 – Existing Wastewater System ........................................................................................... 20 Table 19 – Wastewater Asset Unit Rate ($ per EDU) ........................................................................ 20 Table 20 – Wastewater Adjustments ($ per EDU) ............................................................................. 21 Table 21 – Wastewater Buy-In Calculation ($ per EDU) .................................................................... 21 Table 22 – Wastewater Incremental Costs ........................................................................................ 21 Table 23 – Wastewater Incremental-Cost Component ($ per EDU) ................................................... 22 Table 24 – Wastewater Capacity Fee Summary ................................................................................ 23 Table 25 – Water Debt Schedules FY 2024 to FY 2034 .................................................................... 26 Table 26 – Water Debt Schedules FY 2035 to FY 2046 .................................................................... 26 East Valley Water District – Capacity Fee Study Page | 3 Table 27 – Wastewater Debt Schedules FY 2024 to FY 2034 ........................................................... 27 Table 28 – Wastewater Debt Schedules FY 2035 to FY 2046 ........................................................... 27 Table 29 – Wastewater Debt Schedules FY 2047 to FY 2053 ........................................................... 28 FIGURES Figure 1 – Capacity Fee Analysis ........................................................................................................ 6 Figure 2 – Buy-In Component ............................................................................................................. 7 Figure 3 – Formula for Incremental-Cost Approach ............................................................................. 8 East Valley Water District – Capacity Fee Study Page | 4 Executive Summary East Valley Water (District) engaged IB Consulting to update its capacity fees. This Capacity Fee Study Report (Report) describes the approach, methodology, and technical analysis used to derive updated capacity fees per California State Government Code, Section 66013 (GC 66013). GC 66013 allows an agency to charge the estimated reasonable infrastructure cost to serve a new connection for which the charge is imposed. The existing water capacity fee is $8,273 for a 3/4” water meter, with larger meters paying more for the additional capacity/demand they place on the Water Utility. The existing wastewater capacity fee is $9,014 for one Equivalent Dwelling Unit (1 EDU)1, reflecting the wastewater facility design requirements of 245 daily gallons of flow. Based on our analysis, the updated water capacity fee is $11,775 for a 3/4” potable meter and the updated wastewater capacity fee is $6,486 per EDU. The updated fees recover each new connection’s proportionate share of facility costs. Annual Capacity Fee Adjustment IB Consulting recommends adjusting the capacity fee annually to keep pace with inflation by applying the Engineering News-Record Construction Cost Index (ENR). The District should also review its capacity charges every five years, in conjunction with its master plan updates, to capture any significant changes and ensure capacity fees remain equitable. 1 1 EDU = 245 gallons of flow per day East Valley Water District – Capacity Fee Study Page | 5 Overview District Background Located in the Inland Empire of San Bernardino County (County), the District comprises the entire City of Highland, portions of the City of San Bernardino, and unincorporated areas of the County. The District spans almost 18,000 acres and currently serves a population of around 107,000 through 21,471 meters. Water sources include groundwater, surface water through North Fork water rights, and State Water Project (SWP). All surface water and SWP are treated at Plant 134. The District provides wastewater collection and treatment to the service area through 213 miles of pipeline, 4,400 manholes, 7 siphons, and 5 diversion structures. The collection system historically conveyed wastewater flows to the City of San Bernardino but has recently transitioned to conveying wastewater flows to the District’s new Sterling Natural Resource Center (SNRC). As part of the District’s financial plan and rate update, the capacity fees are being reviewed and updated to ensure new system users or existing users requiring increased system capacity pay their fair share of the costs associated with the water and wastewater facilities required to serve them. Capacity Fee A "Capacity Fee" is defined as a charge for public facilities in existence when a charge is imposed or for new facilities to be constructed in the future that benefit the person or property being charged. Capacity fees ensure new development or existing users requiring increased system capacity pay their fair share of the costs associated with the facilities. Based on the requirements of GC 66013, capacity fees must be based on the "reasonable cost" to accommodate additional demand from new development or the expansion of existing connections. In addition, Proposition 26 amended the State Constitution in 2010, which redefined a "tax" as any levy, charge, or exaction of any kind imposed by a local government. However, there were seven exemptions within Proposition 26, including cost-based charges imposed for providing a service (i.e., capacity fees) so long as such fees do not exceed the cost of providing the service. Therefore, the study summarized in this Report connects the costs of facilities, the capacity of the water, recycled water, and wastewater systems, the increased capacity gained from any expansions, and the updated proposed fees in compliance with the Proposition 26 exemption. Government Code section 66016.6 requires that, Prior to levying a new fee or capacity charge, the District evaluate the amount of the fee or capacity charge. The evaluation shall include evidence to support that the fee or capacity charge does not exceed the estimated reasonable cost of providing service, in accordance with Section 66013. This Report meets the requirements of Government Code section 66016.6. East Valley Water District – Capacity Fee Study Page | 6 Capacity Fee Methodology There are four primary steps in calculating capacity fees: (1) determine the cost of facilities and assets recoverable through capacity fees, (2) incorporate any credits or adjustments to apply towards the total infrastructure costs such as grants, existing debt obligations, unspent debt proceeds, and available funding through previously collected capacity fees, (3) identify demand or capacity related to the facilities and define the baseline requirements for a connection or equivalent dwelling unit based on planning documents, and (4) apportion the net infrastructure costs equitably to various types of connections based on the demand placed on the utility system. Figure 1 – Capacity Fee Analysis In addition to the four steps above, there are two primary approaches for calculating capacity fees: the "Buy- In Method" and "Incremental-Cost Method." Selecting the best method depends on the unique circumstances of the utility, existing facilities funded in advance of development, current and future capacity planned to be built in the system, available funding, whether future facilities will be debt-financed, expected future growth, and access to up-to-date planning documents/master plans. Careful consideration may be required to allocate costs between existing and new customers and ensure no duplication of costs. Buy-In Method The basis of the Buy-In Method is to pay for existing facilities funded in advance of growth. This approach ensures new development and expanded connections buy into the utility system’s existing facilities. The Buy- In method eliminates any potential funding of existing system deficiencies as the District's current asset inventory only reflects improvements to the system today. Once the system value is determined, dividing the total value by the total demand derives the buy-in cost per Meter Equivalent (ME2) for water and per EDU for wastewater. Demand is commonly used for system design 2 Meter Equivalent represents the average demand of a typical single-family residence within the District, equal to 609 gallons per day, as reflected within the District’s most recent Master Plan (Section 3-10). This average daily demand is East Valley Water District – Capacity Fee Study Page | 7 Value of Existing System and planning. It is a primary driver for the system's current configuration and how it expands in the future. For the wastewater utility, demand is measured in gallons per day (gpd) for the SNRC treatment plant capacity and a cost per gallon of capacity is derived. The cost per gallon is multiplied by the daily flow represented by one EDU (the District utilizes 245 gallons per day for facility design) to determine the amount per EDU. Assignment of EDUs to a developing parcel will vary based on land use type and projected wastewater flows and strength loadings. Figure 2 shows the framework for calculating the amount related to the buy-in component. Figure 2 – Buy-In Component Incremental-Cost Method The Incremental-Cost Method is based on the principle that new development should pay for improvements required to connect them to the system, including the need for any additional capacity and/or expansions. This approach is typically used when specific capital improvements are identified within planning documents and required for growth. Projects associated with routine repair & replacement and Master Plan improvements required to address existing deficiencies are excluded. Also, specific projects within the Master Plan may benefit existing and new development. In these instances, new development only pays its proportionate share based on the demand or capacity taken from these projects. Under the Incremental-Cost Method, growth- related capital improvements are allocated to new development based on their capacity requirements. For each utility, demand is measured in gpd and a cost per gallon of capacity is derived. For the water utility, the cost per gallon is multiplied by the average daily demand of a single-family residence, equal to 609 gallons per day, which is equated to the baseline demand of an ME. For the wastewater system, the cost per gallon is multiplied by the daily flow represented by one EDU to determine the amount per EDU. Figure 3 shows the framework for calculating capacity fees using the incremental cost component. assigned to the base 3/4” meter. Larger-sized meters are assigned additional MEs based on the gallons per minute (gpm) for flow when compared to the 3/4" meter at 30 gpm. Current Asset Value Capital Reserves Outstanding Debt Net Present Value of Interst Total Demand (MEs or EDUs) Buy-In Cost ($/ME or $/EDU) East Valley Water District – Capacity Fee Study Page | 8 Figure 3 – Formula for Incremental-Cost Approach Hybrid Method When there is a buy-in component and incremental-cost component used to update capacity fees, the approach is commonly referred to as the Hybrid Method. The Hybrid Approach is utilized when the existing system has available capacity and/or is substantially built while specific capital improvements within planning documents are clearly identified and solely needed to serve new development. For this study, the updated water and wastewater capacity fees are based on the Hybrid Method . Growth-Related Capital Improvement Incremental Increase in Capacity (gpd) Incremental-Cost ($/ME or $/EDU) East Valley Water District – Capacity Fee Study Page | 9 Capacity Fee Analysis - Water Step 1 – Asset Valuation (RCLD Asset Value) The first step in determining the capacity fee using the Buy-In Approach is to determine the value of the existing system. System assets may be valued in a few different ways. Options include using: (1) the original cost of the improvements (OC), (2) original cost less depreciation of system assets to account for the time improvements are in service (OCLD), (3) replacement cost of the improvements by bringing the original cost into today's dollars (RC), (4) replacement cost less depreciation which brings both the original cost and the accumulated depreciation value into today's dollars (RCLD), and (5) a physical inventory and appraisal of the system and plant components in terms of their replacement cost valuation. The most accurate valuation would be a physical inventory and appraisal; however, this approach is often very difficult and cost-prohibitive since a significant portion of the assets are located underground. The most common valuation technique is RCLD. Using RCLD generates a reasonable approximation of the system value based on today's cost of the improvements. This study utilizes the RCLD method of valuing the system. RCLD valuation is the most equitable and reasonable approach since it considers the time value of money and factors in the remaining useful life of each asset. To accomplish this, the District provided fixed asset records containing the original cost of each asset. Replacement costs were estimated by bringing forward the original costs to today's dollars to reflect the estimated cost if a similar asset were constructed today. The original cost of each asset was indexed by the annual percentage change of the 20-cities CCI, published by the Engineering News-Record. For 2024, the CCI value is 13,358. Accumulated depreciation was also indexed to maintain consistency with 2024 dollars. Subtracting the accumulated depreciation from the replacement cost yields the updated RCLD and reflects service standards in 2024 dollars. Table 1 summarizes the water assets by category and shows the original cost, accumulated depreciation, replacement cost in 2024 dollars, accumulated depreciation in 2024 dollars, and assets adjusted for the 2024 depreciation (RCLD). Land values were not depreciated, and the replacement value is estimated by increasing the original acquisition costs by a 2% inflation limit in-line with Proposition 13 constraints on assessed values. Water Rights were also not depreciated because the water rights are owned in perpetuity by the District. A detailed listing of water assets can be found in Appendix A. East Valley Water District – Capacity Fee Study Page | 10 Table 1 – Water Asset Summary Step 2 - Asset Adjustments It is also important to identify any adjustments to the RCLD total asset value. Special consideration may be required when assets are acquired through debt financing, contributed by developers, and grant funding. For this study, the adjustments impacting the asset valuation are separated into three components: Capital Reserves: Includes reserves that provide funding for system improvements, which increases the asset values of the corresponding category. It is reasonable and appropriate to include the balance of the capital-related reserves because they have been built-up over time by existing rate customers and will be used to repair or replace aging infrastructure, thereby contributing to the value of the system’s assets. Capital reserves will increase the system's value as the cash equivalents are available for capital spending. However, previously collected capacity fees that have not yet been spent are applied as a credit towards the system asset value. Table 2 identifies the FY 2025 beginning reserve balances for the District. Table 2 – Water Capital-Related Reserves Outstanding Principal: Remaining outstanding principal payments of existing bonds and loans Water Asset Summary Asset Categories Original Cost Accumulated Depreciation Replacement Cost (2024 $) Accumulated Depreciation (2024 $) RCLD (2024 $) [A] [B] [C] [D] [E] = C-D General $19,724,349 $4,667,560 $26,653,423 $6,842,407 $19,811,016 Hydrants $61,702 $18,293 $112,182 $35,720 $76,462 Land $3,651,695 $0 $5,085,592 $0 $5,085,592 Meters $82,951 $23,636 $140,878 $41,663 $99,215 Pumping Facilities $15,245,781 $5,491,752 $34,284,229 $18,319,650 $15,964,579 Storage $21,532,022 $7,584,042 $48,433,503 $22,937,676 $25,495,827 Transporation and Distribution $70,987,217 $29,754,087 $191,712,233 $115,908,235 $75,803,998 Treatment Plant $33,081,924 $7,486,040 $52,211,190 $14,353,729 $37,857,461 Existing Water Rights $2,143,455 $0 $3,056,508 $0 $3,056,508 Wells $16,943,605 $5,678,650 $32,922,858 $14,249,375 $18,673,483 Total Assets $183,454,703 $60,704,060 $394,612,596 $192,688,455 $201,924,141 Water Capital-Related Reserves Description Included Water Capital- Related Reserves (+) Capital Replacement Fund $10,314,000 (-) Capacity Fee Fund ($5,793,420) Total Water Capital-Related Reserves $4,520,580 East Valley Water District – Capacity Fee Study Page | 11 Table 3 identifies the amount of outstanding principal remaining on the water system's existing debt, with FY 2025 as the starting point. Detailed water debt schedules can be found in Appendix C. Table 3 – Water Outstanding Principal The asset adjustments from Table 2 and Table 3 are summarized in Table 4 to show the total asset adjustments. Table 4 – Water Asset Value Adjustments Step 3 – System Demand/Capacity For water, existing demand is reflected by total Meter Equivalents (MEs), where 1 ME represents the average demand of a typical single-family residence within the District, equal to 609 gallons per day. This average daily demand is assigned to the base 3/4” meter. Total MEs were determined by multiplying the number of existing meters in the water system by the Capacity Ratio. The Capacity Ratio represents the potential flow through each meter size compared to the flow through a 3/4” meter to establish parity between meter sizes. Table 5 summarizes the total MEs in the water system. Water Outstanding Principal Description Included Water Outstanding Principal 2020A Bonds ($14,060,000) 2020B Bonds ($8,575,000) SRF Plant 134 ($5,134,777) Total Water Outstanding Principal ($27,769,777) Valuation Adjustments Adjustments Value ($) (+) Water Capital-Related Reserves $4,520,580 (-) Water Outstanding Principal ($27,769,777) Total Adjustments ($23,249,197) East Valley Water District – Capacity Fee Study Page | 12 Table 5 – Existing Water System Step 4 – Buy-In Component Calculations The previous steps identified water assets (infrastructure), capital-related reserves, outstanding debt principal, and system capacity. The buy-in component can be determined by deriving the cost per ME of the water assets and adjustments. The net RCLD asset value (Total System Value) of the water system is divided by the total MEs to derive the asset unit rate, as shown in Table 6. Table 6 – Water Asset Unit Rate ($ per ME) Water System Information Meter Size Capacity Ratio Existing Meters Meter Equivalent (ME) [A] [B] [C] = AxB 5/8" 0.67 3,479 2,319 3/4" 1.00 13,066 13,066 1" 1.67 4,235 7,058 1 1/2" 3.33 276 920 2" 5.33 302 1,611 3" 16.67 63 1,050 4" 41.67 22 917 6" 66.67 12 800 8" 133.33 13 1,733 Units of Service 21,468 29,474 Buy-In Asset Unit Rate Asset Category RCLD (2024 $) Allocation Basis Units of Service $ per ME [A] [B] [C] = A÷B General $19,811,016 Meter Equivalent (ME)29,474 $672 Hydrants $76,462 Meter Equivalent (ME)29,474 $3 Land $5,085,592 Meter Equivalent (ME)29,474 $173 Meters $99,215 Meter Equivalent (ME)29,474 $3 Pumping Facilities $15,964,579 Meter Equivalent (ME)29,474 $542 Storage $25,495,827 Meter Equivalent (ME)29,474 $865 Transporation and Distribution $75,803,998 Meter Equivalent (ME)29,474 $2,572 Treatment Plant $37,857,461 Meter Equivalent (ME)29,474 $1,284 Existing Water Rights $3,056,508 Meter Equivalent (ME)29,474 $104 Wells $18,673,483 Meter Equivalent (ME)29,474 $634 $201,924,141 $6,852 East Valley Water District – Capacity Fee Study Page | 13 Table 7 summarizes the adjustments for capital-related reserves and outstanding principal with the associated cost per ME. Table 7 – Water Adjustments ($ per ME) Table 8 summarizes the total buy-in amount per ME rounded to the nearest dollar. Table 8 – Water Buy-In Calculation ($ per ME) Step 5: Incremental Costs The capacity fee includes planned capital projects required to accommodate new development based on the most recent Master Plans. These projects include a new reservoir and two new wells, as shown in Table 9. Table 9 – Water Incremental Costs Valuation Adjustments Adjustments Value ($) Allocation Basis Units of Service $ per ME [A] [B] [C] = A÷B (+) Water Capital-Related Reserves $4,520,580 Meter Equivalent (ME)29,474 $153 (-) Water Outstanding Principal ($27,769,777) Meter Equivalent (ME)29,474 ($942) Total Adjustments ($23,249,197) ($789) System Buy-In Components Description $ / ME Water Infrastructure $6,852 (+) Water Capital-Related Reserves $153 (-) Water Outstanding Principal ($942) System Buy-in per ME $6,063 Incremental Costs Capital Projects Projected Cost Canal 3 Reservoir $17,717,280 New Wells $10,000,000 Total $27,717,280 East Valley Water District – Capacity Fee Study Page | 14 Step 6: Incremental-Cost Component Calculations The incremental costs are associated with constructing additional capacity to serve new development. Therefore, the project cost of each asset category is spread over the additional capacity added to the water system in gpd. Table 10 summarizes the cost per gallon of incremental capital projects and the associated cost per ME. Table 10 – Water Incremental-Cost Component ($ per ME) Incremental-Cost Components Capital Projects Projected Cost Allocation Basis Units of Service Unit Rate Conversion Factor $ per ME [A] [B] [C] [D] = A÷C [E] [F]=DxE Canal 3 Reservoir $17,717,280 Reservoir Capacity 3,000,000 $5.91 609 $3,597 New Wells $10,000,000 2024 New Wells 2,880,000 $3.47 609 $2,115 Total $5,712 East Valley Water District – Capacity Fee Study Page | 15 Updated Water Capacity Fees Table 11 summarizes the updated water capacity fee per ME by combining the buy-in and the incremental- cost component. Table 11 – Water Capacity Fee Summary Table 12 summarizes the updated water capacity fee by meter size, with the 3/4” meter set as the base ME. Capacity fees for new connections increase as the size of the meter increases based on the additional capacity taken of the system. Proposed Water Capacity Fee ($/ME) Capacity Fee Components Total ($ per ME) System Buy-In Component Water Infrastructure $6,852 (+) Water Capital-Related Reserves $153 (-) Water Outstanding Principal ($942) System Buy-in per ME $6,063 Incremental Component Canal 3 Reservoir $3,597 New Wells $2,115 Total $5,712 Total Proposed Water Capacity Fee $11,775 East Valley Water District – Capacity Fee Study Page | 16 Table 12 – Proposed Water Capacity Fee Annual Capacity Fee Adjustment In conjunction with adopting the updated water capacity fees, IB Consulting recommends adjusting the capacity fee annually to keep pace with inflation by applying the Engineering News Record Construction Cost Index (ENR). The District should also review its capacity charges every five years, in conjunction with its master plan updates, to capture any significant changes and ensure capacity fees remain equitable. Proposed Water Capacity Fee by Meter Size Meter Size Capacity (gpm) Capacity Ratio Proposed Capacity Fee [A][B] = A÷30 [C] =$11,775xB 3/4" 30 1.00 $11,775 1" 50 1.67 $19,625 1 1/2" 100 3.33 $39,250 2" 160 5.33 $62,800 3" 500 16.67 $196,250 4" 1250 41.67 $490,625 6" 2000 66.67 $785,000 8" 4000 133.33 $1,570,000 10" 6500 216.67 $2,551,250 12" 8000 266.67 $3,140,000 East Valley Water District – Capacity Fee Study Page | 17 Capacity Fee Analysis - Wastewater Step 1 – Asset Valuation (RCLD Asset Value) This study utilizes the RCLD method of valuing the system. RCLD valuation is the most equitable and reasonable approach since it considers the time value of money and factors in the remaining useful life of each asset. To accomplish this, the District provided fixed asset records containing the original cost of each asset. Replacement costs were estimated by bringing forward the original costs to today's dollars to reflect the estimated cost if a similar asset were constructed today. The original cost of each asset was indexed by the annual percentage change of the 20-cities CCI, published by the Engineering News-Record. For 2024, the CCI value is 13,358. Accumulated depreciation was also indexed to maintain consistency with 2024 dollars. Subtracting the accumulated depreciation from the replacement cost yields the updated RCLD and reflects service standards in 2024 dollars. Table 13 summarizes the wastewater assets by category and shows the original cost, accumulated depreciation, replacement cost in 2024 dollars, accumulated depreciation in 2024 dollars, and assets adjusted for the 2024 depreciation (RCLD). Land values were not depreciated, and the replacement value is estimated by increasing the original acquisition costs by a 2% inflation limit in-line with Proposition 13 constraints on assessed values. The new SNRC was recently constructed and started accepting wastewater flows in the second quarter of 2024. A detailed listing of wastewater assets can be found in Appendix B. Table 13 – Wastewater Asset Summary Step 2 - Asset Adjustments It is also important to identify any adjustments to the RCLD total asset value. Special consideration may be required when assets are acquired through debt financing, contributed by developers, and grant funding. For this study, the adjustments impacting the asset valuation are separated into three components: Capital Reserves: Includes reserves that provide funding for system improvements, which increases the asset values of the corresponding category. It is reasonable and appropriate to include the balance of the capital related reserves because they have been built-up over time by existing rate customers and will be used to repair or replace aging infrastructure, thereby contributing to the value of the system. Capital reserves Wastewater Asset Summary Asset Categories OC Accumulated Depreciation Replacement Cost (2024 $) Accumulated Depreciation (2024 $) RCLD (2024 $) [A] [B] [C] [D] [E] = C-D Collection Plant $27,872,913 $16,428,368 $127,853,552 $105,736,394 $22,117,158 General $9,033,538 $3,481,760 $12,602,296 $5,243,705 $7,358,591 Land $2,698,706 $0 $2,976,309 $0 $2,976,309 Treatment $180,684,888 $0 $180,684,888 $0 $180,684,888 Total Assets $220,290,046 $19,910,128 $324,117,044 $110,980,099 $213,136,946 East Valley Water District – Capacity Fee Study Page | 18 will increase the system's value as the cash equivalents are available for capital spending. However, previously collected capacity fees that have not yet been spent are applied as a credit towards the system asset value. Table 14 identifies the FY 2025 beginning reserve balances for the District. Table 14 – Wastewater Capital-Related Reserves Outstanding Principal: Remaining outstanding principal payments of existing bonds and loans Table 15 identifies the amount of outstanding principal remaining for the existing debt for the wastewater system, with FY 2025 as the starting point. Detailed wastewater debt schedules can be found in Appendix C Table 15 – Wastewater Outstanding Principal Outstanding Interest: The SNRC included debt financing as a funding source. The SNRC has a capacity of 8 MGD with 6 MGD operating capacity and 2 MGD associated with accommodating future growth. Therefore, 75% of the debt is secured by rates and 25% of the debt is funded by capacity fees. The 25% of debt secured by capacity fees must account for the future interest payments that must be paid through maturity. Outstanding Interest associated with the SNRC financing requires an additional step to derive the Net Present Value (NPV) of all future interest payments. The capacity fees are pledged to cover 25% of all future interest payments; however, interest is amortized over multiple years. Paying the total amount of future interest payments in advance, before the interest is incurred, would overcharge new connections. Therefore, the NPV of interest is calculated using a discount factor equal to the average yield since 2000 of the Treasury Securities at a 3-Year Constant Maturity (Treasury Securities), equal to 2.282%. Treasury Securities are a safe and conservative return on investment for public agency investments. The NPV calculation discounts the future interest payments by 2.282%, compounded annually. Wastewater Capital-Related Reserves Description Included Wastewater Capital-Related Reserves (+) Capital Replacement Fund $7,500,000 (-) Capacity Fee Fund ($7,320,860) (+) Debt Service Reserve - Growth $1,875,000 Total Wastewater Capital-Related Reserves $2,054,140 Wastewater Outstanding Principal Description Included Wastewater Outstanding Principal 2020B Bonds ($4,205,000) SNRC - Rates (75%) ($119,402,163) Total Wastewater Outstanding Principal ($123,607,163) East Valley Water District – Capacity Fee Study Page | 19 Table 16 shows the amount of outstanding interest and the net present value of the outstanding interest using the 2.282% discount factor for the 25% of the SNRC financing. Table 16 – Wastewater NPV of Outstanding Interest The asset adjustments from Table 14 through Table 16 are summarized in Table 17 to show the total asset adjustments. Table 17 – Wastewater Asset Value Adjustments Wastewater NPV of Outstanding Interest Description Total Interest Included Wastewater NPV of Outstanding Interest 2020B Bonds $1,210,550 $0 SNRC - Rates (75%) $34,910,630 $0 SNRC - Growth (25%) $11,636,877 $10,188,418 Total Wastewater NPV of Outstanding Interest $47,758,056 $10,188,418 Valuation Adjustments Adjustments Value ($) Reserves (+) Capital Replacement Fund $7,500,000 (-) Capacity Fee Fund ($7,320,860) (+) Debt Service Reserve - Growth $1,875,000 Outstanding Principal and Interest (-) Wastewater Outstanding Principal ($123,607,163) (+) Wastewater NPV of Outstanding Interest $10,188,418 Total Adjustments ($111,364,605) East Valley Water District – Capacity Fee Study Page | 20 Step 3 – System Demand/Capacity For wastewater, existing demand is reflected by total Equivalent Dwelling Units (EDUs), reflecting the wastewater facility design requirements of 245 daily gallons of flow. The total design capacity of the wastewater treatment plants does not necessarily reflect the safe operating capacity. Once the plant capacity is close to 80% of total capacity, additional upgrades or expansions are required. Therefore, when deriving capacity-related unit rates, the operating capacity is used. Table 18 summarizes the units of service for the wastewater system. Table 18 – Existing Wastewater System Step 4 – Buy-In Component Calculations The previous steps identified wastewater assets (infrastructure), capital-related reserves, outstanding debt principal, net present value of outstanding interest, and system capacity. The buy-in component can be determined by deriving the cost per EDU of the wastewater assets and adjustments. The net RCLD asset value (Total System Value) of the wastewater system is divided by the total EDUs to derive the asset unit rate, as shown in Table 19. Table 19 – Wastewater Asset Unit Rate ($ per EDU) Wastewater System Information Units of Service Existing EDU (EDU) 29,500 SNRC Operating Capacity (gpd) 6,400,000 SNRC Operating Capacity - (Growth) (gpd) 1,600,000 5th Chamber Ops Capacity (gpd) 1,600,000 Buy-In Asset Unit Rate Asset Category RCLD (2024 $) Allocation Basis Units of Service Unit Rate Conversion Factor $ per EDU [A] [B] [C] [D] = A÷C [E] [F]=DxE Collection Plant $22,117,158 Existing EDU 29,500 $749.73 1 $750 General $7,358,591 Existing EDU 29,500 $249.44 1 $249 Land $2,976,309 Existing EDU 29,500 $100.89 1 $101 Treatment $180,684,888 SNRC Operating Capacity 6,400,000 $28.23 245 $6,917 $213,136,946 $8,017 East Valley Water District – Capacity Fee Study Page | 21 Table 20 summarizes the adjustments for capital-related reserves, outstanding principal, and the net present value of outstanding interest with the associated cost per EDU. Table 20 – Wastewater Adjustments ($ per EDU) Table 21 summarizes the total buy-in amount per EDU rounded to the nearest dollar. Table 21 – Wastewater Buy-In Calculation ($ per EDU) Step 5: Incremental Costs The capacity fee includes planned capital projects for the SNRC. These projects include a fifth chamber for the SNRC treatment plant, as shown in Table 22. The new chamber will add an additional 1.6 MGD of capacity. Table 22 – Wastewater Incremental Costs Valuation Adjustments Adjustments Value ($) Allocation Basis Units of Service Unit Rate Conversion Factor $ per EDU [A] [B] [C] [D] = A÷C [E] [F]=DxE Reserves (+) Capital Replacement Fund $7,500,000 Existing EDU 29,500 $254.24 1 $254 (-) Capacity Fee Fund ($7,320,860) Existing EDU 29,500 ($248.16) 1 ($248) (+) Debt Service Reserve - Growth $1,875,000 SNRC Operating Capacity - (Growth)1,600,000 $1.17 245 $287 Outstanding Principal and Interest (-) Wastewater Outstanding Principal ($123,607,163) SNRC Operating Capacity 6,400,000 ($19.31) 245 ($4,732) (+) Wastewater NPV of Outstanding Interest $10,188,418 SNRC Operating Capacity - (Growth)1,600,000 $6.37 245 $1,560 Total Adjustments ($111,364,605) ($2,879) Incremental-Cost Capital Projects Projected Cost 5th Chamber for SNRC $8,800,000 Total Incremental Component $8,800,000 East Valley Water District – Capacity Fee Study Page | 22 Step 6: Incremental-Cost Component Calculations The incremental costs are associated with constructing additional capacity. Therefore, the project cost is spread over the additional capacity added to the wastewater system in gpd. Table 23 summarizes the cost per gallon of incremental capital projects and the associated cost per EDU. Table 23 – Wastewater Incremental-Cost Component ($ per EDU) Incremental-Cost Components Capital Projects Projected Cost Allocation Basis Units of Service Unit Rate Conversion Factor $ per EDU [A] [B] [C] [D] = A÷C [E] [F]=DxE 5th Chamber for SNRC $8,800,000 5th Chamber Ops Capacity 1,600,000 $5.50 245 $1,348 Total Incremental Component $1,348 East Valley Water District – Capacity Fee Study Page | 23 Updated Wastewater Capacity Fees Table 24 summarizes the updated wastewater capacity fee per EDU by combining the buy-in and the incremental-cost component. Table 24 – Wastewater Capacity Fee Summary Annual Capacity Fee Adjustment In conjunction with adopting the updated wastewater capacity fees, IB Consulting recommends adjusting the capacity fee annually to keep pace with inflation by applying the Engineering News Record Construction Cost Index (ENR). The District should also review its capacity charges every five years, in conjunction with its master plan updates, to capture any significant changes and ensure capacity fees remain equitable. East Valley Water District – Capacity Fee Study Page | 24 Appendix A – Water Asset Listing This Page Intentionally Left Blank East Valley Water District – Capacity Fee Study Page | 25 Appendix B – Wastewater Asset Listing This Page Intentionally Left Blank East Valley Water District – Capacity Fee Study Page | 26 Appendix C – Debt Schedules Table 25 – Water Debt Schedules FY 2024 to FY 2034 Table 26 – Water Debt Schedules FY 2035 to FY 2046 Financial Information Water Outstanding Debt FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 2020A Bonds Principal $990,000 $1,030,000 $575,000 $605,000 $635,000 $665,000 $700,000 $735,000 $770,000 $805,000 $835,000 Interest $615,600 $565,100 $524,975 $495,475 $464,475 $431,975 $397,850 $361,975 $324,350 $289,000 $256,200 Subtotal 2020A Bonds $1,605,600 $1,595,100 $1,099,975 $1,100,475 $1,099,475 $1,096,975 $1,097,850 $1,096,975 $1,094,350 $1,094,000 $1,091,200 2020B Bonds Principal $105,000 $100,000 $200,000 $205,000 $210,000 $215,000 $215,000 $215,000 $230,000 $230,000 $235,000 Interest $224,087 $223,341 $221,996 $219,754 $217,014 $213,716 $209,889 $205,847 $201,380 $196,424 $191,121 Subtotal 2020B Bonds $329,087 $323,341 $421,996 $424,754 $427,014 $428,716 $424,889 $420,847 $431,380 $426,424 $426,121 US Bank Loan Principal $444,375 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Interest $7,987 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal US Bank Loan $452,363 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Eastwood Farms Principal $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Eastwood Farms $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 Arroyo Verde Principal $6,762 $6,762 $6,762 $6,762 $6,762 $6,762 $6,762 $6,762 $3,382 $0 $0 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Arroyo Verde $6,762 $6,762 $6,762 $6,762 $6,762 $6,762 $6,762 $6,762 $3,382 $0 $0 SRF Plant 134 Principal $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal SRF Plant 134 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 Financial Information Water Outstanding Debt FY 2035 FY 2036 FY 2037 FY 2038 FY 2039 FY 2040 FY 2041 FY 2042 FY 2043 FY 2044 FY 2045 FY 2046 2020A Bonds Principal $865,000 $900,000 $925,000 $960,000 $985,000 $1,015,000 $1,055,000 $0 $0 $0 $0 $0 Interest $222,200 $186,900 $155,025 $126,750 $97,575 $62,500 $21,100 $0 $0 $0 $0 $0 Subtotal 2020A Bonds $1,087,200 $1,086,900 $1,080,025 $1,086,750 $1,082,575 $1,077,500 $1,076,100 $0 $0 $0 $0 $0 2020B Bonds Principal $255,000 $250,000 $270,000 $275,000 $280,000 $295,000 $310,000 $1,410,000 $1,450,000 $1,725,000 $0 $0 Interest $185,349 $179,277 $172,284 $164,300 $156,169 $147,745 $138,882 $113,684 $71,785 $25,271 $0 $0 Subtotal 2020B Bonds $440,349 $429,277 $442,284 $439,300 $436,169 $442,745 $448,882 $1,523,684 $1,521,785 $1,750,271 $0 $0 US Bank Loan Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal US Bank Loan $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Eastwood Farms Principal $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,017 $0 $0 $0 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Eastwood Farms $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,016 $13,017 $0 $0 $0 Arroyo Verde Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Arroyo Verde $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 SRF Plant 134 Principal $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,398 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal SRF Plant 134 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,399 $233,398 East Valley Water District – Capacity Fee Study Page | 27 Table 27 – Wastewater Debt Schedules FY 2024 to FY 2034 Table 28 – Wastewater Debt Schedules FY 2035 to FY 2046 Financial Information Wastewater Oustanding Debt FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 2020B Bonds Principal $175,000 $175,000 $175,000 $180,000 $180,000 $180,000 $185,000 $190,000 $190,000 $200,000 $200,000 Interest $98,274 $96,997 $95,466 $93,500 $91,124 $88,334 $85,084 $81,558 $77,749 $73,543 $68,983 Subtotal 2020B Bonds $273,274 $271,997 $270,466 $273,500 $271,124 $268,334 $270,084 $271,558 $267,749 $273,543 $268,983 SNRC - Rates (75%) Principal $3,121,778 $3,171,892 $3,228,986 $3,287,108 $3,346,276 $3,406,509 $3,467,826 $3,530,247 $3,593,791 $3,658,479 $3,724,332 Interest $2,199,353 $2,149,239 $2,092,145 $2,034,023 $1,974,855 $1,914,622 $1,853,305 $1,790,884 $1,727,340 $1,662,652 $1,596,799 Subtotal SNRC - Rates (75%) $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 SNRC - Growth (25%) Principal $1,040,593 $1,057,297 $1,076,329 $1,095,703 $1,115,425 $1,135,503 $1,155,942 $1,176,749 $1,197,930 $1,219,493 $1,241,444 Interest $733,118 $716,413 $697,382 $678,008 $658,285 $638,207 $617,768 $596,961 $575,780 $554,217 $532,266 Subtotal SNRC - Growth (25%) $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 Water Fund 20 Loan - Rates (75%) Principal $0 $0 $0 $0 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Water Fund 20 Loan - Rates (75%)$0 $0 $0 $0 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 Water Fund 20 Loan - Growth (25%) Principal $0 $0 $0 $0 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Water Fund 20 Loan - Growth (25%)$0 $0 $0 $0 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 Financial Information Wastewater Oustanding Debt FY 2035 FY 2036 FY 2037 FY 2038 FY 2039 FY 2040 FY 2041 FY 2042 FY 2043 FY 2044 FY 2045 FY 2046 2020B Bonds Principal $205,000 $215,000 $220,000 $225,000 $230,000 $235,000 $240,000 $250,000 $260,000 $270,000 $0 $0 Interest $64,213 $59,161 $53,326 $46,807 $40,141 $33,329 $26,370 $19,192 $11,720 $3,956 $0 $0 Subtotal 2020B Bonds $269,213 $274,161 $273,326 $271,807 $270,141 $268,329 $266,370 $269,192 $271,720 $273,956 $0 $0 SNRC - Rates (75%) Principal $3,791,370 $3,859,614 $3,929,088 $3,999,811 $4,071,808 $4,145,100 $4,219,712 $4,295,667 $4,372,989 $4,451,703 $4,531,833 $4,613,406 Interest $1,529,761 $1,461,516 $1,392,043 $1,321,320 $1,249,323 $1,176,031 $1,101,419 $1,025,464 $948,142 $869,428 $789,297 $707,724 Subtotal SNRC - Rates (75%) $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 SNRC - Growth (25%) Principal $1,263,790 $1,286,538 $1,309,696 $1,333,270 $1,357,269 $1,381,700 $1,406,571 $1,431,889 $1,457,663 $1,483,901 $1,510,611 $1,537,802 Interest $509,920 $487,172 $464,014 $440,440 $416,441 $392,010 $367,140 $341,821 $316,047 $289,809 $263,099 $235,908 Subtotal SNRC - Growth (25%) $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 Water Fund 20 Loan - Rates (75%) Principal $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Water Fund 20 Loan - Rates (75%)$281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 $281,250 Water Fund 20 Loan - Growth (25%) Principal $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Water Fund 20 Loan - Growth (25%)$93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 $93,750 East Valley Water District – Capacity Fee Study Page | 28 Table 29 – Wastewater Debt Schedules FY 2047 to FY 2053 Financial Information Wastewater Oustanding Debt FY 2047 FY 2048 FY 2049 FY 2050 FY 2051 FY 2052 FY 2053 2020B Bonds Principal $0 $0 $0 $0 $0 $0 $0 Interest $0 $0 $0 $0 $0 $0 $0 Subtotal 2020B Bonds $0 $0 $0 $0 $0 $0 $0 SNRC - Rates (75%) Principal $4,696,448 $4,780,984 $4,867,041 $4,954,648 $5,043,832 $5,134,621 $5,227,044 Interest $624,683 $540,147 $454,089 $366,483 $277,299 $186,510 $94,087 Subtotal SNRC - Rates (75%) $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 $5,321,131 SNRC - Growth (25%) Principal $1,565,483 $1,593,661 $1,622,347 $1,651,549 $1,681,277 $1,711,540 $1,742,348 Interest $208,228 $180,049 $151,363 $122,161 $92,433 $62,170 $31,362 Subtotal SNRC - Growth (25%) $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 $1,773,710 Water Fund 20 Loan - Rates (75%) Principal $281,250 $0 $0 $0 $0 $0 $0 Interest $0 $0 $0 $0 $0 $0 $0 Subtotal Water Fund 20 Loan - Rates (75%)$281,250 $0 $0 $0 $0 $0 $0 Water Fund 20 Loan - Growth (25%) Principal $93,750 $0 $0 $0 $0 $0 $0 Interest $0 $0 $0 $0 $0 $0 $0 Subtotal Water Fund 20 Loan - Growth (25%)$93,750 $0 $0 $0 $0 $0 $0 Agenda Item #4e November 13, 20241 Meeting Date: November 13, 2024 Agenda Item #4e Discussion Item 1 9 0 4 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Ratification of Contract with Xylem Dewatering Solutions for the Sterling Natural Resource Center which was approved on an emergency basis RECOMMENDATION That the Board of Directors ratify the approval of a contract with Xylem Dewatering Solutions, Inc. for emergency pump rental equipment. BACKGROUND / ANALYSIS The Sterling Natural Resource Center (SNRC) includes four pumps and motors to begin the treatment process of recycled water. The pumps and motors lift sewer influent from the 30-ft deep pipeline and wetwell to the above grade headworks facility. The pumps are critical to the treatment plant operation and include redundant pumps. Two pumps are required for normal operation while two pumps are backups in case the first two pumps fail. The SNRC began operation in January 2024. The influent pump motors have experienced several issues that require the pumps to be transferred to the manufacturer’s repair facility; the repairs have been completed under the contractor warranty. Typically, one pump is removed, which still provides two duty pumps and one backup pump. However, in late October one pump was being repaired and a second influent pump failed leaving only two duty pumps in operation. The removal, diagnosis, parts procurement, repair and installation takes 1-3 months for each pump and motor. The risk of failure of one of the duty pumps would cause a backup of wastewater that would eventually spill. District staff and the design-build contractor evaluated alternatives to quickly provide backup pumping in case an additional influent pump fails. The District negotiated an emergency installation of a temporary pump system with Xylem Dewatering Solutions Inc. Xylem provides engineered solutions for the water/wastewater industry including rental solutions for emergency responses. The District issued an emergency purchase order to Xylem on October 22, 2024, in the amount of $172,000. The purchase order is based on up to a 6-month rental. The District will keep the temporary system until all four influent pumps are operating. District policy 7.1 requires the Board to ratify the emergency purchase order to Xylem. The cost for the rental pumping equipment was not budgeted and will be paid from the Agenda Item #4e November 13, 20242 Meeting Date: November 13, 2024 Agenda Item #4e Discussion Item 1 9 0 4 Water Reclamation Fund. AGENCY GOALS AND OBJECTIVES III - Deliver Public Service With Purpose While Embracing Continuous Growth A. Advance Emergency Preparedness Efforts IV - Promote Planning, Maintenance and Preservation of District Resources A. Develop Projects and Programs to Ensure Safe and Reliable Services B. Enhance Planning Efforts that Respond to Future Demands REVIEW BY OTHERS This agenda item has been reviewed by the Administration and Water Reclamation Departments. FISCAL IMPACT The fiscal impact associated with this agenda item is that expenses up to $172,000 will be paid from the Water Reclamation Fund reserves. The mid-year budget will reflect the added contract service expenses. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Manny Moreno Water Reclamation Manager ATTACHMENTS Presentation Xylem Quote SNRC TEMPORARY INFLUENT PUMP SYSTEM November 13, 2024 Manny Moreno, Water Reclamation Manager •Facility overview •Pumps lift raw influent 30-ft to Headworks Treatment Processes •Four centrifugal screw pumps and motors (107 Horsepower) •Two duty pumps and two backup pumps •Pump #4 replaced on July 22, 2024 •Pumps #1,3,4 failed in succession on October 6, 2024 •Pump #2 removed on October 18, 2024 •Pump #3 failed on October 22, 2024 •Contracted Xylem to install temporary pumps on October 23, 2024 •Pumps #1 and #4 currently in service INFLUENT PUMP STATION Pump #1 Pump #4 Pump #3 Pump #2 MOTOR TEMPERATURE MONITORING TEMPORARY XYLEM PUMP SYSTEM INSTALLATION TEMPORARY XYLEM INFLUENT PUMP SYSTEM TEMPORARY XYLEM PUMP SYSTEM DISCHARGE DISCUSSION PURCHASE ORDER 10/22/2024 ISSUED TO: Date: Vendor #:04239 XYLEM DEWATERING SOLUTIONS, INC 84 FLOODGATE ROAD BRIDGEPORT, NJ 08014- SHIP TO:East Valley Water District Attn:SNRC-Water Reclamation Dept 25376 5th St San Bernardino, CA 92410 01513PO Number: Requisition #:REQ02098 31111 Greenspot Road Highland, CA 92346 (909) 889-9501 UNITS DESCRIPTION AMOUNTGL ACCT #ITEM PRICEPROJ ACCT # 1 0 064a6ec8-a790-4cef-a159-b21201125a43 Emergency Bypass Rental for SNRC (6 Months) 064a6ec8-a790-4cef-a159-b21201125a43Reference Quote #117027437. Monthly Rate is $23,195.25 + Delivery & Pickup Charge. 35-6300-53-6301 172,000.000.00 064a6ec8-a790-4cef-a159-b21201125a43064a6ec8-a790-4cef-a159-b21201125a43 Original invoice must be sent to: East Valley Water District, 31111 Greenspot Road, Highland, CA 92346. Payment may be expected within 30 days of receipt of goods, unless otherwise stated. Purchase Order numbers must appear on all shipping containers, packing slips and invoices. Failure to comply with the above request may delay payment. All goods are to be shipped F.O.B. Destination unless otherwise stated. All materials and services are subject to approval based on the description on the face of the purchase order or appendages thereof. Substitutions are not permitted without approval of the Requesting Department. Material not approved will be returned at no cost to the Water District. All goods and equipment must meet or exceed all necessary city, state and federal standards and regulations. Vendor or manufacturer bears risk of loss or damage until property received and/or installed. Seller acknowledges that the buyer is an equal opportunity employer. Seller will comply with all equal opportunity laws and regulations that are applicable to it as a supplier of the buyer. 172,000.00TOTAL SUBTOTAL: 0.00 172,000.00 SHIPPING: 1. 2. 3. 4. 5. 6. 7. 8. TOTAL TAX:0.00 Finance Department: (909) 381-6463 FAX: (909) 784-0285 CA Labor Code 1771.1. (a) A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Profession Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded. Agenda Item #4f November 13, 20241 1 9 0 5 Meeting Date: November 13, 2024 Agenda Item #4f Discussion Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Approval of Environmental Mitigation Reimbursement Agreement with the San Bernardino Valley Municipal Water District RECOMMENDATION That the Board of Directors authorize the General Manager/CEO to execute a Reimbursement Agreement with San Bernardino Valley Municipal Water District in the not to exceed amount of $273,787. BACKGROUND / ANALYSIS The Sterling Natural Resource Center (SNRC) required various environmental mitigation measures to mitigate the effect of removing wastewater effluent from the Santa Ana River. Many of the mitigation measures are required to start once the SNRC is operational. San Bernardino Valley Municipal Water District (SBVMWD) is performing other mitigation measures in the Santa Ana River. The proposed agreement will allow SBVMWD to incorporate the SNRC required mitigation through Spring 2025. Environmental mitigation in the Santa Ana River were required by the United States Fish and Wildlife, State Water Board and California Department of Fish and Wildlife. The requirements were to offset biological impacts due to the reduced flows in the river. The mitigation measures include water quality sampling, invasive weed abatement, aquatic predator control, and several measures to protect the Santa Ana Sucker fish. The District is obligated through the adoption of the SNRC Environmental Impact Report Mitigation Monitoring Report, Streambed Alteration Agreement and various Biological Opinions from the regulatory agencies. The work is to be done annually by the District until the regional Habitat Conservation Plan (HCP) is approved by the regulators. Once the HCP is approved, the SNRC environmental mitigation will be performed along with the other HCP mitigation measures. The HCP is anticipated to be approved within the next few months. The proposed reimbursement agreement will complete the required mitigation measures through March 2025. The work to perform the mitigation measures after March 2025 will be brought back to the Board under a separate HCP agreement or a separate reimbursement agreement. AGENCY GOALS AND OBJECTIVES Agenda Item #4f November 13, 20242 1 9 0 5 Meeting Date: November 13, 2024 Agenda Item #4f Discussion Item I - Implement Effective Solutions Through Visionary Leadership A. Identify Opportunities to Optimize Natural Resources IV - Promote Planning, Maintenance and Preservation of District Resources C. Strengthen Regional, State and National Partnerships A. Develop Projects and Programs to Ensure Safe and Reliable Services REVIEW BY OTHERS This agenda item has been reviewed by the Executive Management Team. FISCAL IMPACT The proposed mitigation measures were not included in the annual budget. Staff is therefore proposing to use Water Operating reserves to pay for the proposed FY 2024- 25 measures. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Jeff Noelte Director of Engineering and Operations ATTACHMENTS Agreement Attachments to Agreement (A-O) REIMBURSEMENT AGREEMENT THIS REIMBURSEMENT AGREEMENT (“Agreement”) is entered into and effective as of ______________, 2024 (“Effective Date”), by and between EAST VALLEY WATER DISTRICT, a county water district organized and operating pursuant to California Water Code section 30000 et seq. (“EVWD”), and SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT, a municipal water district organized and operating pursuant to California Water Code section 71000 et seq. (“SAN BERNARDINO VALLEY”). EVWD and SAN BERNARDINO VALLEY are sometimes referred to herein individually as “Party” and collectively as “Parties”. RECITALS A. On March 9, 2017, the United States Fish and Wildlife Service (“USFWS”) issued a biological opinion (“2017 BiOp” [attached as Attachment A hereto]) (FWS-SB-16B0182- 17F0387) for the construction and operation of the Sterling Natural Resources Center (“SNRC”) in accordance with section 7 of the Federal Endangered Species Act. The 2017 BiOp concluded that the proposed construction and operation of the SNRC is not likely to jeopardize the continued existence of or adversely modify the critical habitat of the San Bernardino kangaroo rat (“SBKR”) or Santa Ana Sucker (“SAS”). The biological opinion also concluded that the SNRC should be included as a covered activity of the Upper Santa Ana River Habitat Conservation Plan (“HCP”). B. On April 28, 2017, the State Water Board’s Division of Water Rights issued an order approving the Petition in Order WW0095 (“Order WW0095” [attached as Attachment B hereto]). The State Water Board included a Mitigation Monitoring and Reporting Program (“Order MMRP” as part of Order WW0095. The Order MMRP recites mitigation measures in the Final Environmental Impact Report (“EIR” [State Clearinghouse Number 2015101058]) for SNRC, and specifies implementation and monitoring responsibilities, including SAN BERNARDINO VALLEY being signatory to the HCP and the inclusion of the SNRC as a covered activity. C. On August 11, 2017, the USFWS issued an amendment to the 2017 BiOp (“Amended 2017 BiOp” [attached as Attachment C hereto]) (FWS-SB-16B0182-17F0387-R001). The Amended 2017 BiOp addressed the roles and responsibilities of both the United States Environmental Protection Agency and State Water Board associated with implementation of the 2017 BiOp conservation measures. D. On June 20, 2018, the San Bernardino County Local Agency Formation Commission approved the activation of EVWD’s latent wastewater treatment authority conditioned on SAN BERNARDINO VALLEY assigning to EVWD SAN BERNARDINO VALLEY’s obligations as lead agency arising under the SNRC Final EIR and associated MMRP. E. In October 2018, the Parties executed a written assignment agreement (“Assignment Agreement” [attached as Attachment D hereto]) whereby San Bernardino Valley assigned all obligations and responsibilities, express and implied, arising from and/or related to the SNRC Final EIR and associated MMRP, to EVWD, and EVWD accepted, assumed, and agreed to perform, fulfill, and comply with all obligations and responsibilities, express and implied, 2 arising from and/or related to the SNRC Final EIR and associated MMRP, and the CDFW- and USFWS-approved Habitat Mitigation and Monitoring Plan (“HMMP”). F. In July 2019, EVWD, as the lead agency under CEQA, adopted an addendum to the Final EIR (“Addendum No. 1”) which evaluated specified operational changes to the SNRC facility that included emergency operations and recycled water detention ponds, use of an adjacent parcel, and food waste facilities. Addendum No.1 did not create new or increased environmental impacts beyond those analyzed and mitigated in the Final EIR. G. On January 27, 2021, EVWD, as the lead agency under CEQA, adopted a second addendum to the Final EIR (“Addendum No. 2”), with project modifications. Addendum No. 2 allowed for the recharge of SNRC-treated water into an alternative groundwater recharge site (“Weaver Basins”) and extension of the Final EIR treated water conveyance pipeline system (“Regional Recycled Water Pipeline”) to the alternative groundwater recharge site. Modifications to the SNRC Project in Addendum No. 2 reduced impacts to the SBKR. H. On January 3, 2022, USFWS issued a second amendment to the 2017 BiOp (“Second Amended 2017 BiOp” [attached as Attachment E hereto]) (FWS-SB-16B0182- 17F0387-R002). The Second Amended 2017 BiOp revised the conservation measures for the SBKR and Santa Ana River woolly-star based on changes to the SNRC project. These changes did not change project effects on SAS and the analysis in the 2017 biological opinion remains valid. I. On December 1, 2023, the USFWS issued a third amendment to the 2017 BiOp. The third amendment (“Third Amended 2017 BiOp” [attached as Attachment F hereto]). The Third Amended 2017 BiOp provided flexibility for implementing SAS conservation measures and concluded that the proposed changes would not affect the SAS in any way that was not considered in the 2017 BiOp. The Third Amended BiOp required EVWD to prepare and submit to the USFWS for review and approval a Santa Ana Sucker Habitat Mitigation and Monitoring Plan (“SAS HMMP”). J. On January 10, 2024, the California Department of Fish and Wildlife (“CDFW”) issued Streambed Alteration Agreement Number EPIMS-SBR-42496-R6 (“SAA” [attached as Attachment G hereto]) authorizing EVWD to reduce discharge to the Santa Ana River by 6 million gallons per day. The SAA required EVWD to conduct various baseline data collection, prepare multiple mitigation and monitoring plans, and conduct multiple compensatory mitigation measures. Baseline data collection and associated reporting and preparation of compensatory mitigation plans were required to be submitted to CDFW for review and approval prior a change in the quantity of discharge of EVWD’s treated wastewater to the Santa Ana River. K. In 2023 SAN BERNARDINO VALLEY, on behalf of EVWD, pursuant to Conservation Measure 21 of the Third Amended BiOp and Mitigation Measure 3.6 of the SAA, prepared and submitted for approval to the USFWS and CDFW, a SAS HMMP (attached as Attachment H hereto) for the long-term implementation, management, and monitoring, of a suite of measures for the benefit of SAS. The Third Amended BiOp and/or the SAA specified that the SAS HMMP include Habitat Node Creation, an Aquatic Predator Control Program, an Exotic Weed Management Program, High Flow Pulse Events, Upper Watershed SAS Population Establishment, and annual monitoring of the Santa Ana River. 3 L. On November 30, 2023, CDFW approved the SAS HMMP. M. On December 1, 2023, USFWS approved the SAS HMMP. N. EVWD desires SAN BERNARDINO VALLEY, on EVWD’s behalf, to implement certain conservation/mitigation measures identified in the approved SAS HMMP and in the SAA. The conservation/mitigation measures consist of Habitat Nodes, Aquatic Predator Control, Exotic Weed Management, High Flow Pulse Events, Water Temperature, Translocation, Native Fish Surveys, Riparian Bird Monitoring, and Habitat Restoration. O. On May 17, 2016, SAN BERNARDINO VALLEY executed a Consulting Services Agreement with the Riverside-Corona Resource Conservation District (“RCRCD”), attached as Attachment I hereto and incorporated herein by reference, for Native Fish Raceways and Refugia Facilities for the HCP. The facilities will be used as a component of SAS translocation. The costs of the RCRCD Consulting Services Agreement is Four Hundred Sixty Three Thousand Seven Hundred Thirty Six Dollars ($463,736), as identified in Attachment I hereto. P. In April 2024, SAN BERNARDINO VALLEY executed a Consulting Services Agreement with the Santa Ana Watershed Association (“SAWA”), attached as Attachment J hereto and incorporated herein by reference, for riparian bird surveys and reporting along the Santa Ana River. The cost of the riparian bird surveys and reporting for 2024 is Two Hundred Ninety Thousand One Hundred Fifty Dollars ($290,150), as identified in Attachment A (Riparian Bird Surveys for the 2024 Nesting Season Scope of Work) to the SAWA Consulting Services Agreement attached as Attachment J. Q. On May 14, 2024, SAN BERNARDINO VALLEY executed a second Consulting Services Agreement with SAWA, attached as Attachment K hereto and incorporated herein by reference, for habitat management actions on multiple projects/properties, including EVWD’s obligation to conduct exotic weed management along no less than 1.4 miles of the Santa Ana River in San Bernardino and/or Riverside County. The cost of habitat enhancement actions along EVWD’s 1.4-mile stretch of the Santa Ana River over the next 12 months is One Hundred Forty Six Thousand Four Hundred Eighteen Dollars and Seventy-Five Cents ($146,418.75), as identified in Exhibit “A” (Nonnative Plant Management Spring 2024 Project Scope of Work) to the SAWA Consulting Services Agreement attached as Attachment K hereto. R. On August 26, 2024, SAN BERNARDINO VALLEY executed a Purchase Order with the Riverside-Corona Resource Conservation District (“RCRCD”), attached as Attachment L hereto and incorporated herein by reference, for water sampling, and annual native fish surveys in the Santa Ana River, among other actions. The cost of water sampling, annual native fish surveys, and administrative overhead over the next 12 months is Thirty Three Thousand Six Hundred Sixty Two Dollars and Eighty Cents ($33,662.80), as identified in Exhibit “B” (Proposed Operational Budgets for the Upper SAR HCP Native Fish Monitoring Program) to the RCRCD Purchase Order attached as Attachment L hereto. S. In August 2024, SAN BERNARDINO VALLEY received a Scope of Work from the Southwest Resource Management Association (“SRMA”) for Nonnative Aquatic Species Control in the Santa Ana River. The cost of the nonnative aquatic species control and 4 administrative overhead over the next 12 months is Seven Thousand Dollars ($7,000), as identified in Exhibit “C” (Proposed Operational Budgets for the Upper SAR HCP Native Fish Monitoring Program), attached as Attachment M hereto and incorporated herein by reference. T. On September 5, 2024, SAN BERNARDINO VALLEY executed a Joint Funding Agreement with the United States Geological Survey California Water Science Center (“USGS”), attached as Attachment N hereto and incorporated by reference, for native fish surveys, and the development of a water temperature model. The cost of the native fish surveys and water temperature model is One Hundred Seventy Two Three Hundred Thirty Two Dollars ($172,332), as identified in the Joint Funding Agreement attached as Attachment N hereto. U. SAN BERNARDINO VALLEY estimates that the 2024 costs for habitat node creation, associated water quality sampling, data analysis and reporting will be approximately Twenty Thousand Dollars ($20,000). V. SAN BERNARDINO VALLEY estimates that cost of implementation of conservation/mitigation measures in the SAS HMMP and SAA for 2024 is Two Hundred Seventy Three Seven Hundred Eighty Seven Dollars ($273,787) (“Maximum Reimbursement”), as identified in Attachment O attached hereto (SNRC Projected 2024 Costs). W. EVWD wishes to establish and agree to a framework and reimburse San Bernardino Valley for expenses incurred in implementing conservation/mitigation measures identified in the SAS HMMP, and in the SAA, as identified in Attachment O attached hereto. NOW THEREFORE, in consideration of the matters recited and the mutual promises, covenants, and conditions set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: OPERATIVE PROVISIONS 1. Incorporation of Recitals. Each and every one of the Recitals set forth above is a material part of this Agreement and is hereby incorporated by reference into and made part of this Agreement by this reference. 2. SAA and SAS HMMP Management and Implementation. Except as expressly provided herein, EVWD shall perform all obligations to be performed by EVWD under the SAA and the SAS HMMP. Subject to the terms and conditions of this Agreement, SAN BERNARDINO VALLEY will manage and implement, on behalf of EVWD, the conservation/mitigation measures in the approved SAS HMMP and SAA, as set forth in Attachments H and G hereto. 3. Term. The term of this Agreement shall commence as of the Effective Date and shall terminate on the earlier of: (a) March 31, 2025; or (b) SAN BERNARDINO VALLEY incurs total approved costs equaling the Maximum Reimbursement. 4. Reimbursement. EVWD shall reimburse SAN BERNARDINO VALLEY for all costs incurred by SAN BERNARDINO VALLEY related to implementation of conservation/mitigation measures identified in the SAS HMMP and SAA; provided, however, that 5 the total reimbursement shall not exceed the Maximum Reimbursement without an amendment to this Agreement. 5. Payments. SAN BERNARDINO VALLEY shall prepare and submit to EVWD invoices, supported by appropriate and sufficient documentation of costs incurred herein. EVWD shall pay all invoices within thirty (30) days after receipt. 6. Indemnification. a.EVWD Indemnity. Pursuant to Government Code section 895.4, EVWD shall indemnify, defend, and hold harmless SAN BERNARDINO VALLEY from and against any and all third-party claims, demands, losses, fines, penalties, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies of whatever nature (including reasonable attorneys’ fees) (collectively, “Claims”) arising out of or related to EVWD’s performance of its obligations under this Agreement, except to the extent that such Claims are caused by the negligence or willful misconduct of SAN BERNARDINO VALLEY. b.SAN BERNARINO VALLEY Indemnity. Pursuant to Government Code section 895.4, SAN BERNARDINO VALLEY shall indemnify, defend, and hold harmless EVWD from and against any and all Claims arising out of or related to SAN BERNARDINO VALLEY’s performance of its obligations under this Agreement, except to the extent that such Claims are caused by the negligence or willful misconduct of EVWD. 7. Miscellaneous. a.Notices. Any notice to be given or to be served upon either Party hereto in connection with this Agreement must be in writing and shall be deemed to have been given and received: (a) when personally delivered; (b) two (2) days after it is sent by Federal Express or similar overnight courier, postage prepaid and addressed to the Party for whom it is intended, at that Party’s address specified below; (c) three (3) days after it is sent by certified or registered United States mail, return receipt requested, postage prepaid and addressed to the Party for whom it is intended, at that Party’s address specified below; or (d) as of the date of electronic mail transmission addressed to the Party for whom it is intended, at that Party’s electronic mail address specified below, and provided that an original of such notice is also sent to the intended addressee by means described in clauses (a), (b), or (c) within two (2) business days after such transmission. Either Party may change the place for the giving of notice to it by thirty (30) days prior written notice to the other Party as provided herein. If to SAN BERNARDINO VALLEY: San Bernardino Valley Municipal Water District Attn: Heather Dyer, CEO/General Manager 380 East Vanderbilt Way San Bernardino, CA 92408 Email: heatherd@sbvmwd.com 6 with a copy to: Varner & Brandt LLP Attn: Bradley E. Neufeld 3750 University Avenue, 6th Floor Riverside, CA 92501-3323 Email: bradley.neufeld@varnerbrandt.com If to WVWD: East Valley Water District Attn: Michael Moore 31111 Greenspot Road Highland, CA 92346 Email: mmoore@eastvalley.org b.Further Acts. Each Party agrees to perform any further acts and to execute and deliver any documents which may be reasonably necessary to carry out the provisions of this Agreement. c.Modifications Must Be Made in Writing. This Agreement may not be modified, altered, or changed in any manner whatsoever except by a written instrument duly executed by authorized representatives of both Parties. d.Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State of California, excluding any choice of law provision that would apply the laws of any other jurisdiction. Any action taken to enforce this Agreement shall be maintained exclusively in the Superior Court of the State of California, San Bernardino County. Each Party expressly consents to the exclusive jurisdiction of said court and waives any right it may otherwise have to challenge the appropriateness of such forum, whether on the basis of the doctrine of forum non conveniens or otherwise. e.Entire Agreement. This Agreement contains the entire understanding between the Parties, and supersedes any prior understanding and/or written or oral agreements between them, respecting the subject matter of this Agreement. There are no representations, agreements, arrangements, or understandings, oral or written, by and between the Parties relating to the subject matter of this Agreement that are not fully expressed herein. f.Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same instrument. Signatures may be delivered electronically and shall be binding upon the Parties as if they were originals. [Signature Page Follows] [Signature Page for Reimbursement Agreement] 7 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT By: ______________________________ Heather P. Dyer CEO/General Manager EAST VALLEY WATER DISTRICT By: _________________________ Name: _________________________ Its: _________________________ ATTACHMENT A UNITED STATES FISH AND WILDLIFE SERVICE FORMAL SECTION 7 OPINION FOR THE PROPOSED STERLING NATURAL SOURCE CENTER DATED MARCH 9, 2017 ATTACHMENT B STATE WATER RESOURCES CONTROL BOARD WASTEWATER PETITION ORDER WW0095 DATED APRIL 28, 2017 ATTACHMENT C UNITED STATES FISH AND WILDLIFE SERVICE REINITIATION OF FORMAL SECTION 7 CONSULTATION ON THE PROPOSED STERLING NATURAL SOURCE CENTER DATED AUGUST 11, 2017 ATTACHMENT D ASSIGNMENT AND ASSUMPTION OF EIR OBLIGATIONS AND IMPLEMENTATION, MONITORING, AND REPORTING RESPONSIBILITIES UNDER THE STERLING NATURAL SOURCE CENTER MITIGATION MONITORING AND REPORTING PROGRAM DATED OCTOBER 2018 ATTACHMENT E UNITED STATES FISH AND WILDLIFE SERVICE REINITIATION OF FORMAL SECTION 7 CONSULTATION ON THE PROPOSED STERLING NATURAL SOURCE CENTER DATED JANUARY 3, 2022 ATTACHMENT F UNITED STATES FISH AND WILDLIFE SERVICE AMENDMENT TO THE BIOLOGICAL OPINION FOR THE PROPOSED STERLING NATURAL SOURCE CENTER DATED DECEMBER 1, 2023 ATTACHMENT G CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE STREAMBED ALTERATION AGREEMENT NUMBER EPIMS-SBR-42496-R6 FOR THE STERLING NATURAL RESOURCES CENTER DATED JANUARY 10, 2024 ATTACHMENT H SANTA ANA SUCKER HABITAT MITIGATION AND MONITORING PLAN DATED NOVEMBER 2023 ATTACHMENT I CONSULTING SERVICES AGREEMENT WITH THE RIVERSIDE-CORONA RESOURCE CONSERVATION DISTRICT FOR THE NATIVE FISH RACEWAYS AND REFUGIA FACILITIES FOR THE UPPER SANTA ANA RIVER HABITAT CONSERVATION PLAN DATED MAY 17, 2016 ATTACHMENT J CONSULTING SERVICES AGREEMENT WITH THE SANTA ANA WATERSHED ASSOCIATION FOR RIPARIAN BIRD SURVEYS AND REPORTING FOR THE UPPER SANTA ANA RIVER HABITAT CONSERVATION PLAN DATED APRIL 10, 2024 ATTACHMENT K CONSULTING SERVICES AGREEMENT WITH THE SANTA ANA WATERSHED ASSOCIATION FOR NONNATIVE PLANT MANAGEMENT DATED MAY 14, 2024 ATTACHMENT L PURCHASE ORDER WITH THE RIVERSIDE-CORONA RESOURCE CONSERVATION DISTRICT FOR PROPOSED OPERATIONAL BUDGETS FOR THE UPPER SANTA ANA RIVER HCP NATIVE FISH MONITORING PROGRAM DATED AUGUST 26, 2024 ATTACHMENT M SCOPE OF WORK FROM SOUTHWEST RESOURCE MANAGEMENT ASSOCIATION FOR PROPOSED OPERATIONAL BUDGETS FOR THE UPPER SAR HCP NATIVE FISH MONITORING PROGRAM DATED JULY 2024 ATTACHMENT N JOINT FUNDING AGREEMENT WITH THE UNITED STATES GEOLOGICAL SURVEY CALIFORNIA WATER SCIENCE CENTER FOR NATIVE FISH SURVEYS, DATA ANALYSIS, AND REPORTING, AND DEVELOPMENT OF A WATER TEMPERATURE MODEL FOR THE SANTA ANA RIVER DATED SEPTEMBER 6, 2024 ATTACHMENT O SNRC PROJECTED 2024 COSTS FOR IMPLEMENTATION OF CONSERVATION/MITIGATION MEASURES IN THE SAS, HMMP, AND SAA United States Department of the Interior FISH AND WILDLIFE SERVICE Ecological Services Carlsbad Fish and Wildlife Office 2177 Salk Avenue, Suite 250 Carlsbad, California 92008 In Reply Refer To: FWS-SB-16B0182-17F0387 March 9, 2017 Sent by Email Doug Eberhardt Section Chief (W-3-3) Infrastructure Section U.S. Environmental Protection Agency, Region IX 75 Hawthorne Street San Francisco, California 94105 Attention: Elizabeth Borowiec Subject: Formal Section 7 Opinion on the Proposed Sterling Natural Resource Center, San Bernardino County, California Dear Mr. Eberhardt: This letter transmits our, the U.S. Fish and Wildlife Service (USFWS), biological opinion on the proposed issuance of federal funding [Clean Water State Revolving Fund (CWSRF)] by the U.S. Environmental Protection Agency (USEPA) for the construction and operation of the proposed Sterling Natural Resources Center (SNRC or Project). The USEPA has delegated the administration of the CWSRF program to states, including California, under the federal Clean Water Act (CWA), to assist in funding projects intended to improve water quality. The Division of Financial Assistance of the State Water Resources Control Board (State Water Board) administers the CWSRF program in California pursuant to 40 Code of Federal Regulations (CFR) Part 35, Subpart K. The USEPA is the lead Federal agency and the U.S. Army Corps of Engineers (USACE) is a cooperating agency for this consultation. The action of the USACE includes the issuance of a Clean Water Act Section 404 permit for City Creek and the Santa Ana River. East Valley Water District (EVWD), in cooperation with the San Bernardino Valley Municipal Water District (Valley District), is the non-Federal applicant (Valley District). This biological opinion addresses the effects of the SNRC on the federally endangered San Bernardino kangaroo rat (Dipodomys merriami parvus; SBKR) and its designated critical habitat and the federally threatened Santa Ana sucker (Catostomus santaanae; SAS) and its designated critical habitat in accordance with Section 7 of the Endangered Species Act of 1973 (Act), as amended (16 U.S.C. 1531 et seq.). There are four other federally listed species in the larger Project area, four of which have designated critical habitat. You have requested our concurrence with your determination that the proposed action is not likely to adversely affect these species including the endangered Santa Ana River woolly-star (Eriastrum densifolium ssp. sanctorum; woolly-star), southwestern willow flycatcher (Empidonax traillii extimus; flycatcher), least Bell’s vireo (Vireo Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 2 bellii pusillus; vireo), and the federally threatened coastal California gnatcatcher (Polioptila californica californica; gnatcatcher). You have also concluded that the proposed action will have no effect to the designated critical habitat of mountain yellow-legged frog [southern California DPS (Rana muscosa)], SAS, SBKR, or flycatcher. We concur with your determination that the proposed action is not likely to adversely affect woolly-star, vireo, flycatcher, or gnatcatcher. Santa Ana River Woolly-star The woolly-star is an endemic to the Santa Ana River Watershed. Historically this species ranged from the upstream reaches of the Santa Ana River alluvial fan and into the foothills of the San Bernardino Mountain Range in San Bernardino County downstream to the Santa Ana Canyon in Orange County. It is found only within open washes and early-successional scalebroom scrub on fluvial deposits where flooding and scouring occur at a frequency that allows the persistence of open shrublands (USFWS 2010a). The species occurs in the upper mainstem of the Santa Ana River, from the City of Riverside to just upstream of Seven Oaks Dam, with additional occurrences in Mill Creek, City Creek, Plunge Creek, Lytle Creek, and Cajon Creek (USFWS 2010a). Woolly-star has been documented within the floodplain of City Creek, the San Bernardino International Airport property, and the Santa Ana River floodplain both upstream and downstream of the confluence of the Rialto channel and the Santa Ana River (ESA 2016a). In summer 2016 the City Creek rare plant survey (ESA 2016a) did not find any woolly-star plants in the footprint of the construction area or any plants within the single dry braid of the creek thalweg. The semi-perennial discharge of effluent from the Project would result in the conversion of xeric riparian and/or scalebroom scrub vegetation to riparian woodland vegetation from downstream of the outfall in City Creek (Boulder Avenue) to near Alabama Street. Where this occurs in City Creek, conversion of scrub vegetation to woodland vegetation will limit the potential of woolly-star to exist. Although this limits the potential habitat area for this species it represents an insignificant decrease in available habitat across the species’ range and does not constitute an impact that would affect species’ recovery. Within the mainstem of the Santa Ana River downstream of the City Creek confluence, the species becomes less common. Downstream of the Rialto Channel in the mainstem river woolly- star exists patchily in the channelized floodplain. A decrease to the discharge of the total flow volume from Rapid Infiltration and Extraction (RIX) facility, as proposed as a Project-related action, may positively affect the distribution of woolly-star located downstream in the river floodplain by reducing the width of wetted channel and its associated riparian corridor and increasing the area of habitat suitable for woolly-star. Preconstruction surveys will be conducted to avoid any individual wooly-star that may be affected by Project activities. Given the lack of positive occurrence records in the proposed footprint of the direct impact area and proposed conservation measures that will avoid impacts to woolly-star, we concur with your determination that the proposed Project is not likely to adversely affect the species. No critical habitat for the species is present in the Project area. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 3 Southwestern Willow Flycatcher Flycatchers are migratory, spending the winter in locations such as southern Mexico, Central America, and probably South America, and nesting in the southwestern United States from about May to September (USFWS 2014a). Surveys conducted for the Western Riverside County Multiple Species Habitat Conservation Plan (MSHCP) have recorded flycatcher on the Santa Ana River in the area of indirect effect at Hidden Valley in 2007 (4 detections) and in 2015 (1 detection) (ESA 2016a). In most years one or more flycatcher territories have been documented in Prado Basin (Hoffman et al. 2014). The most recent flycatcher record in the area of indirect effect is of a single adult male observed just upstream of Mission Boulevard Bridge on the Santa Ana River (observation date June 18, 2016; ESA 2016b). Upstream of the Mission Boulevard Bridge to the RIX outlet is a reach of the river that has falling groundwater (ESA 2016a). Riparian vegetation in this portion of the river is dependent on infiltrated effluent surface flow for survival during the dry season when the groundwater is below the rooting depth of most of the shallow-rooted native riparian plant species. Project effects are expected to have a permanent reduction in the total amount of riparian habitat in this reach of the river due to channel constriction from reduced surface flow. The wetted channel is expected to constrict by an estimated 8 percent resulting in an equivalent constriction of the riparian corridor and loss of up to 1.21 acres of riparian vegetation. Riparian vegetation will be lost on the outer margins of the current riparian corridor from soil drying and type conversion to scalebroom scrub vegetation. Rising groundwater near Mission Boulevard was confirmed by the U.S. Geological Survey (USGS) during RIX shutdown monitoring in 2015 (ESA 2016a). This condition, rising groundwater, is expected to persist unaffected with Project reduced discharge from RIX, continuing downstream to Prado Basin. Of the 1.21 acres anticipated to be lost, approximately 0.5 acres of the wetted channel is expected to be lost within designated critical habitat for flycatcher, from the RIX outlet to the Riverside County line located just downstream of Riverside Avenue Bridge. Although not a precise measure of riparian vegetation, the 0.5 acres within designated critical habitat, or 1.21 acres of wetted channel anticipated being lost, is spread along a 4.2 mile river reach (RIX facility to Mission Boulevard Bridge). The portion of the riparian corridor that is expected to be lost, outer margin of riparian corridor, does not provide the ecological values important to flycatcher (i.e. large riparian canopy overhanging water or wetter soils). Mowing of the riparian corridor is conducted by Riverside County Flood Control and Water Conservation District (RCFCWCD) downstream of Riverside Avenue to below Mission Boulevard for the purposes of maintaining channel capacity (as required by the USACE manual for maintaining the levee system). This activity temporarily limits the amount of riparian habitat to 10 feet on either side of the stream corridor for the period of time it takes for the habitat to regrow (generally 2 to 5 years). Wastewater added to City Creek will create additional riparian habitat in the Santa Ana River watershed beyond the current terminus of the riparian corridor. The amount and extent of riparian habitat created will be dependent on a variety of factors, including environmental conditions, depth to groundwater, and long-term management by San Bernardino County Flood Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 4 Control District. It is anticipated that up to 8.2 acres of riparian habitat will be created in City Creek. Since flycatcher currently use most of the lowland riparian habitats as migratory corridors, the extension of continuous riparian habitat from the San Bernardino Mountain Range to other downstream riparian habitats is considered a long-term benefit to the species. Conservation Measure 17b.i has been included in the Project description to enhance portions of the perennial stream habitat for SAS in the mainstem of the Santa Ana River. This activity may temporarily remove riparian vegetation in ingress, egress, and work areas at six locations downstream of the RCFCWCD-maintained USACE levee system, but will be conducted in areas not occupied by flycatcher. This activity will minimize impacts to riparian vegetation in coordination with the USFWS to avoid incidental take of flycatcher. Given the infrequent occurrence records of this species in the lowland floodplain of the Santa Ana River outside of Prado Basin, abundant suitable habitat that will remain unaffected by the Project, low potential for losses of riparian habitat to effect the species in the proposed Project impact area by reducing the potential foraging and/or nesting habitat for the species, no proposed impact to ecological function of designated critical habitat, and potential benefit to the species with the creation of riparian habitat in City Creek, we concur with your determination that the proposed Project is not likely to adversely affect flycatcher or its designated critical habitat. Least Bell’s Vireo The vireo is an obligate riparian species during the breeding season and is characterized as preferring early successional habitat (USFWS 1998a). It is a subtropical migrant, traveling 2,000 miles annually between breeding and wintering grounds. It arrives in southern California breeding grounds in mid-March to early April, and is generally present until late September. Males establish and defend territories through counter-singing, chasing and sometimes physically confronting neighboring males. Territory size ranges from 0.5 to 7.5 acres. The vireo population in the U.S. has increased 10-fold since its listing in 1986, from 291 to 2,968 known territories (USFWS 2006). The population has grown during each 5-year period since the original listing, although the rate of increase has slowed over the last 10 years. Most of the vireo breeding sites are located in southern California between the Tehachapi Mountains in Kern and Ventura counties south to northwestern Baja California, Mexico (USFWS 2006). Thus, despite a significant increase in overall population numbers, the population remains restricted to the southern portion of its historic range. The overall positive population trend for vireo since its listing is primarily due to efforts to reduce threats such as loss and degradation of riparian habitat, and cowbird parasitism. The control of giant reed (Arundo donax) has been important in improving vireo habitat. Brood parasitism by cowbirds remains the primary threat to vireo recovery. Cowbird trapping has proven to be an effective technique for recovering vireo populations in areas it is implemented. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 5 A recent and developing threat to vireo is the shot hole borer (Euwallacea sp.), an invasive ambrosia beetle that forms a symbiosis with a fungus (Fusarium sp.) that causes Fusarium dieback, a disease that induces branch or whole tree death (Eskalen et al. 2013). Molecular, morphometric, and chemical testing have found that the more common tea shot hole borer (Euwallacea fornicatus), native to tropical southeastern Asia and naturalized in Florida and Hawaii, is different from the newly named Polyphagous (PSHB) and Kuroshio (KSHB) shot hole borers found invading southern California woodlands (Eskalen et al. 2013; Chen et al. 2016). In 2013 there were 19 confirmed reproductive host trees species located in Los Angeles and Orange counties (Eskalen et al. 2013). This number has increased to 49 host species, including most native riparian trees and shrubs (Eskalen 2017). The two species have invaded new areas of southern California riparian habitats, north from coastal San Diego to Santa Barbara counties and east to western Riverside and San Bernardino counties (Eskalen 2017). Although the maximum extent of damage and result of this invasion is yet unknown, early monitoring suggests that riparian forests are especially vulnerable to Fusarium dieback with tree death observed (Boland 2016). Long-term management, monitoring, and research into control methods are needed to combat this threat to vireo and other obligate riparian species. Vireo is relatively common in the continuous riparian corridor found along the Santa Ana River, from Rialto Channel downstream to Prado Basin. Upstream, vireo is generally restricted to patches of riparian habitat near the Santa Ana River confluence with San Timoteo Creek and further upstream near the foothills of the San Bernardino Mountain Range in City Creek. It is anticipated that up to 1.21 acres (8 percent) of wetted habitat will be permanently lost with Project related reduced discharge [6 million gallons per day (MGD)] into the Santa Ana River. Associated losses of riparian habitat are expected to be small and may be undetectable. Losses will be spread from the RIX outlet downstream to Mission Boulevard Bridge (4.2 miles) and will vary by location, depending on river depth. With flow reduction, channel constriction was modeled at between 4 and 7 percent (ESA 2016a), but we used 8 percent reduction when assessing changes to the wetted channel (see Indirect Effects section for SAS). Conservation Measure 17b.i has been included in the Project description to enhance portions of the perennial stream habitat for SAS in the mainstem of the Santa Ana River. This activity may temporarily remove riparian vegetation in ingress, egress, and work areas at six locations downstream of the RCFCWCD-maintained USACE levee system, but will be conducted in areas not occupied by vireo. This activity will minimize to the maximum extent practicable impacts to riparian vegetation in coordination with the USFWS to avoid incidental take of vireo. Project-induced indirect changes to riparian vegetation downstream of Riverside Avenue are not expected to reduce the ecological value of the habitat for use by vireo or reduce the amount of habitat in any specific location that may rise to the level of take of this species. Creation of riparian habitat (8.2 acres) in City Creek will more than offset any loss of riparian habitat in the mainstem of the Santa Ana River. Project impacts are expect to occur upstream and effects of reduced discharge on the amount and function of the riparian habitat is anticipated to diminish moving downstream, with measureable changes to surface flow in the stream (wetted channel) subsiding at approximately Mission Boulevard Bridge. This is approximately 1 mile upstream of Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 6 the start of the designated critical habitat for vireo in the mainstem Santa Ana River which continues downstream into Prado Basin. Designated critical habitat for vireo is located in the defined action area (described in the Action Area section below). Because we do not expect Project-related reductions in riparian habitat to cause take of individual vireo or reduce the distribution of vireo in the river, and no change in the amount or function of critical habitat is expected, we concur with your determination that the proposed Project is not likely to adversely affect the vireo or its designated critical habitat. Coastal California Gnatcatcher Gnatcatchers range from coastal southern California to Baja California, Mexico. The inland metapopulation, which is distributed around the Project area and east and north to the foothills of the San Bernardino Mountain Range, is relatively isolated from the coastal metapopulations. There is no suitable nesting habitat in the discharge footprint in City Creek and suitable breeding habitat (minimum of 15 – 20 percent native shrub cover) is patchily distributed downstream (ESA 2016a). The species could utilize the scalebroom scrub vegetation in City Creek for foraging and dispersal, but the lack of records and sparsity of habitat within City Creek and its confluence with Santa Ana River, indicate that gnatcatcher presence is likely ephemeral. Discharge of effluent into City Creek is expected to result in the conversion of a narrow strip of early seral-stage scalebroom scrub vegetation to riparian vegetation. This would not reduce the available gnatcatcher foraging habitat as riparian vegetation also provides this function (foraging habitat) for the species. The nearest gnatcatcher record is approximately 2 miles to the east of City Creek within the Woolly-Star Preserve Area. Project type conversion of scalebroom scrub to riparian habitat is not expected to result in direct effects on gnatcatcher breeding habitat. Downstream in the mainstem of the Santa Ana River there are gnatcatcher occurrence records on either side of the river near the RIX outfall in upland coastal sage scrub habitat, less than 0.5 miles from the area proposed for Project discharge reduction. These records suggest that gnatcatcher may use the river on a limited basis for foraging and dispersal. Flow reduction and non-native vegetation management in the Santa Ana River will not reduce the available amount of scalebroom scrub or native riparian habitat that gnatcatchers may be using for foraging habitat. It is anticipated that gnatcatcher foraging and/or breeding habitat (scalebroom scrub habitat) will increase as part of flow reduction from the RIX facility, benefitting the species. Designated critical habitat for gnatcatcher occurs east of the RIX facility, adjacent to the river in upland areas, and will not be affected by this Project. Given the lack of gnatcatcher occurrence records near the Project footprint in City Creek, the lack of mature scalebroom scrub habitat (breeding habitat) that will be affected from water discharge into City Creek, and the absence of effects to designated critical habitat, we concur with your determination that the proposed Project is not likely to adversely affect the gnatcatcher, or its designated critical habitat. Additionally, the proposed conservation of scalebroom scrub to mitigate impacts to SBKR and/or woolly-star as part of the Project, as described below, may benefit the gnatcatcher. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 7 Avoidance measures to benefit woolly-star, vireo, flycatcher, and gnatcatcher have been included in the Project description below. Beyond the identification of those measures, woolly-star, vireo, flycatcher, or gnatcatcher will not be further discussed in this document. This biological opinion is based on information provided in the following documents and communications: biological assessment (ESA 2016a; BA) and an amendment to the BA (Valley District 2017);Habitat Maintenance and Monitoring Plan (ESA 2016c; HMMP) and an amendment to the HMMP (Valley District 2017);Sterling Natural Resource Center Draft Environmental Impact Report (ESA 2015a); Reduced Flow Model (ESA 2015b), GIS layers provided for Project features including federally listed plant and animal locations; survey reports; information provided during meetings and phone calls; site visits; email correspondence; and information in the Palm Springs Fish and Wildlife Office (PSFWO) files. The Project file for this consultation is located at the PSFWO. CONSULTATION HISTORY Informal discussion between the applicant and the USFWS began on March 5, 2015. We had a conference call on June 14, 2016 with USEPA, USACE, and State Water Board. We received the BA on August 8, 2016. On November 20, 2016 we received a letter from you dated November 18, 2016, requesting initiation of formal consultation. The BA had incorporated previous comments on the draft EIR and comments during many meetings and conversations between Valley District and the USFWS in regard to the Sterling Natural Resource Center proposed covered activity within the Upper Santa Ana River Habitat Conservation Plan. After further review of the BA, the USFWS and Valley District met on January 24, 2017 to discuss conservation measures included in the BA. This discussion led to an amendment of the BA (received February 6, 2017). Consultation was initiated on November 20, 2016, the date we received your request. Santa Ana River Pipeline (removed from Project description, February 6, 2017) On February 6, 2017 the USFWS received a document revising the BA (Valley District 2017). In this document, Valley District removed the Santa Ana River component of the Project description, which would have connected the SNRC with the discharge pipeline of the San Bernardino Water Reclamation Plant. A new pipeline segment would have been constructed along Alabama Street to the existing Santa Ana River pipeline by proceeding west from Alabama Street (along the boundary between the cities of San Bernardino and Redlands) for at least 1,000 feet and tying in near the east bank of City Creek. Associated impacts to 2.39 acres of SBKR designated critical habitat, scalebroom scrub vegetation, and up to 850 woolly-star plants near the San Bernardino International Airport Authority property and within the confluence of City Creek and the Santa Ana River were removed from the Project description. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 8 BIOLOGICAL OPINION DESCRIPTION OF THE PROPOSED ACTION Valley District is proposing to construct the SNRC facility in the City of Highland to treat wastewater generated in the EVWD service area for groundwater recharge in the upper Santa Ana River watershed. EVWD currently conveys its wastewater to the City of San Bernardino for secondary treatment at the San Bernardino Water Reclamation Plant (SBWRP) and tertiary treatment at the RIX facility which discharges to the Santa Ana River. The proposed Project would instead treat, recycle and reuse the wastewater for multiple beneficial uses within the upper Santa Ana River watershed. Six MGD of water would be diverted from the RIX facility and will not be discharged into the Santa Ana River. The diverted 6 MGD would be treated at the SNRC and discharged higher in the watershed either into City Creek, or into existing basins in the City of Redlands, California (Redlands Basins, operated by the City of Redlands) (Figure 1). The purpose of diverting the 6 MGD from the Rix facility for treatment at the SNRC is to provide the local community with greater control over the cost and method of wastewater treatment while producing a new supply of recycled water for local groundwater replenishment in the Bunker Hill Groundwater Basin. In addition, the proposed Project would provide an opportunity to create and/or enhance riparian and aquatic habitats in City Creek that would contribute to the regional conservation goals being developed through the Upper Santa Ana River Habitat Conservation Plan (HCP). Project Area The proposed Project is located within three municipalities: City of Highland, City of San Bernardino, and City of Redlands. Portions of the treated water conveyance pipelines for the City Creek and Redlands Basins alternatives would also traverse unincorporated areas within the County of San Bernardino. The SNRC would be constructed on a 14-acre parcel of land, located at North Del Rosa Drive between East 5th Street and East 6th Street in the City of Highland. The SNRC recycled water treatment facility would be located on the 8-acre parcel east of North Del Rosa Drive. Offices for the operations of the SNRC would be located in administrative buildings that would be constructed on the 6-acre parcel to the west of North Del Rosa Drive. The SNRC would produce tertiary-treated water for reuse. A conveyance system including a pumping station and pipeline would be constructed to convey treated water from the SNRC to discharge locations in City Creek and/or the Redlands Basins. Most of the wastewater reaching the new treatment facility would be conveyed by gravity within the existing collection system. However, some modifications would be necessary to connect the existing collection system with the new treatment plant. Two lift stations and approximately 11,000 linear feet of forcemain would be installed within city streets west of the SNRC. y The diverted 6 MGD would be treated at the g SNRC and discharged higher in the watershed either into City Creek,or into existing basins in gg y,g the City of Redlands, California (Redlands Basins, operated by the City of Redlands)(Figure 1). gyyygy However, some modifications would be necessary to connect thegy ,y existing collection system with the new treatment plant. Two lift stations and approximately gy p pp 11,000 linear feet of forcemain would be installed within city streets west of the SNRC. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 9 Project Components Sterling Natural Resource Center The SNRC would be constructed on two parcels in the City of Highland. The parcel to the west of North Del Rosa Drive is owned by EVWD and would support the Administration Center. Treatment Facility The SNRC would provide tertiary treatment of wastewater generated within the EVWD service area. The SNRC would have a maximum capacity of 10 MGD and produce tertiary treated water in compliance with California Code of Regulations Title 22 recycled water quality requirements for unrestricted use. The plant design includes primary treatment, a membrane bio-reactor, ultraviolet light disinfection, and anaerobic solids processing with off-site solids disposal. The proposed SNRC would consist of multiple buildings, to house the process components, equipment, and offices. Administration Center The 6-acre parcel west of North Del Rosa Drive would be developed into the SNRC Administration Center. The Administration Center would consist of administration buildings and pavilions housing administrative offices needed for the treatment plant, surrounded by publicly accessible open space. The Administration Center would be designed to serve the community with an interpretive center with community gardens and community pavilions. It would also act as an Emergency Operations Center during emergencies. Construction The Project would take approximately 18 months to construct; including 18 months for the SNRC, 16 months for the conveyance facilities, 6 months for the discharge structures, and 6 months for equipping the existing Rialto wells. Excavated soils would be reused onsite to the extent feasible and otherwise deposited offsite. Approximately 21,000 cubic yards (CY) of soil would need to be hauled off site for the Treatment Facility and Administration Center. This assumes 20 CY per truck load on average, approximately 1,050 dump truck trips would be needed for removal of the excavated material. In addition, structural fill material (aggregate) would need to be hauled onto the site. An additional 1,000 truck trips may be required for aggregate deliveries. Discharge Locations and Groundwater Recharge Areas The treated water will be conveyed by pipelines to discharge structures at City Creek and Redlands Basins. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 10 City Creek To connect the SNRC to the City Creek discharge facility, approximately 38,700 linear feet of 24-inch diameter pipeline would be installed in existing city streets. The pipeline alignment runs east from the SNRC property in East 6th Street or East 5th Street heading east from the SNRC for approximately 2 miles to Central Avenue and south to the City Creek channel crossing, then north to the City Creek discharge structure. The pipeline would cross under the SR-210 freeway using trenchless construction methods and would be installed within paved street rights-of way and San Bernardino County Flood Control District (SBCFCD) right-of-way along City Creek. Within City Creek, the discharge structure would have a permanent footprint of up to 30-foot by 30-foot and be constructed of concrete with a partially buried energy dissipation structure. The facility would include flow control valves, metering, and telemetry. Construction methods may include trenchless methods under the flood control levee, daylighting within the creek channel, or trenching through the levee. Construction zones in roadways would be approximately 20 feet wide across one or two traffic lanes. Open trenches would be between approximately 10 and 15 feet wide. The construction corridor would be 30 feet wide, which is enough to accommodate the trench and to allow for staging areas and vehicle access. Offsite construction staging areas would be identified by contractors for pipe lay-down, soil stockpiling, and equipment storage. On average, 150 feet of pipeline would be installed per day. Trenches would be backfilled at the end of each work day or temporarily closed by covering with steel trench plates. The construction equipment needed for pipeline installations generally includes: backhoes, excavators, dump trucks, shoring equipment, steam rollers, and plate compactors. Typically, 15 to 20 workers would be required for pipeline installations. Excavated suitable soils would be reused as backfill and other disposed offsite. Trenchless construction methods would be employed to install pipelines under sensitive drainages, highways, and creek levees. Trenchless installation could include either directional drilling or jack and bore methods. All trenchless installations would require an approximately 50-foot by 100-foot temporary construction area on each side of the crossing for installation shafts (pits), materials, and equipment. Trenchless crossings would be designed to avoid physical impacts to the flood control levee. Construction of the discharge structure is estimated to take about 2 months, with construction of one structure overlapping with pipeline installation at any given time. In general, construction activities would occur between 7:00 a.m. and 7:00 p.m., Monday through Friday. Redlands Basins A 24-inch diameter conveyance pipeline would be installed within Alabama Street from East 6th Street or East 5th Street for approximately 1.3 miles south to the existing City of Redlands’ basins (Redlands Basins). The conveyance pipeline would cross the Santa Ana River within an existing conduit attached to the Alabama Street Bridge. Valley District owns an existing 30-inch To connect the SNRC to the City Creek discharge facility,approximately 38,700 linear feet of aaygy,pp y , 24-inch diameter pipeline would be installed in existing city streets.The pipeline alignment runsppgypp g east from the SNRC property in East 6th Street or East 5th Street heading east from the SNRCpp y g for approximately ff 2 miles to Central Avenue and south to the City Creek channel crossing, thenpp y yg, north to the City Creek discharge structure. The pipeline would cross under the SR-210 freeway yg pp y using trenchless construction methods and would be installed within paved street rights-of way g p g y and San Bernardino County Flood Control District (SBCFCD) right-of-ff way along City Creek.y()gygy Within City Creek, the discharge structure would have a permanent footprint of up to 30-foot byy, g p p p 30-foot and be constructed of concrete with a partially buried energy dissipation structure. The py gyp facility would include flow control valves, metering,and telemetry. Construction methods may y,g,yy include trenchless methods under the flood control levee, daylighting within the creek channel, or trenching through the levee. py pp Trenchless installation could include either directionalg, g y, drilling or jack and bore methods. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 11 diameter pipe within the bridge deck, and the existing pipeline would act as a casing for the proposed 24-inch pipeline. No trenching within sensitive habitat will be necessary when crossing the Santa Ana River. A discharge structure would be constructed at the Redlands Basins to convey flows into multiple basins. The discharge structure would be partially buried with a less than 30-foot by 30-foot permanent footprint. Alternatively, a pipeline manifold would be installed in the basin with multiple valves at a predetermined spacing that can be opened or closed at different times based on the incoming flow. The facility would include flow control valves, metering and telemetry. Construction of the discharge structure would occur between 7:00 am and 7:00 pm and is estimated to take about 2 months. The construction corridor along Alabama Street would be 30 feet wide until it connects to the discharge structure in the Redlands Basins and reduces to a 20-foot wide corridor. Conservation Measures General and species-specific conservation measures (CM) are listed below that are designed to avoid and minimize impacts to federally listed species and their designated critical habitats, and to offset impacts that may otherwise adversely affect a listed species. General measures are to be implemented in all areas where sensitive resources may occur (i.e., City Creek or Redlands Basins). General Measures CM 1. Worker Environmental Awareness Program. A Worker Environmental Awareness Program (WEAP) will be provided to work crews by a qualified biologist(s) prior to the commencement of construction activities. Each worker will receive the WEAP training prior to beginning work on the Project. Training materials and briefings will include but not be limited to, discussion of the federal and state Endangered Species Acts, the consequences of noncompliance with Project permitting requirements, identification of special-status plant and wildlife species and sensitive natural plant community habitats present in or adjacent to the work areas, a contact person in the event of the discovery of dead or injured wildlife, and review of construction-related avoidance and minimization requirements. Maps showing the location of special-status plants and wildlife, exclusion areas, or other construction limitations (i.e., limited operating periods) will be provided to the environmental monitors and work crews prior to ground disturbance. CM 2. Limits of Disturbance. Prior to construction in or adjacent to sensitive habitat areas and under the direction of a qualified biologist, Valley District will clearly delineate the construction right-of-way (stake, flag, fence, etc.) that restricts the limits of construction to the minimum necessary to implement the Project. CM 3. Biological Monitoring. Prior to the start of construction, Valley District will retain a USFWS-authorized biological monitor on site during the initial ground Conservation Measures Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 12 disturbance and during construction activities to monitor habitat conditions and impacts. The biological monitor will ensure compliance with the Project description evaluated in the biological opinion, including all CMs and terms and conditions, and will have the authority to halt or suspend all activities until appropriate corrective measures have been taken. The biological monitor will report any non-compliance immediately to the USFWS. The biological monitor will be a qualified biologist/botanist with species expertise appropriate for this Project. The USFWS will approve all biological monitors before Project activities can begin. CM 4. Construction Best Management Practices. The Contractor will implement the following Best Management Practices during construction of pipelines and discharge structures to protect any adjacent sensitive natural communities that provide habitat for special-status species. a. The following water quality protection measures will be implemented during construction: i. Stationary engines, such as compressors, generators, light plants, etc., will have drip pans beneath them to prevent any leakage from entering runoff or receiving waters. ii. All construction equipment will be inspected for leaks and maintained regularly to avoid soil contamination. Leaks and smears of petroleum products will be wiped clean prior to use. iii. Any grout waste or spills will be cleaned up immediately and disposed of off-site. iv. Spill kits capable of containing hazardous spills will be stored on-site. b. To prevent inadvertent entrapment of common and special-status wildlife during construction, all excavated, steep-walled holes or trenches more than 2 feet deep will be covered with tarp, plywood or similar materials at the close of each working day and will be inspected visually to confirm animals would be excluded, to prevent animals from being trapped. Ramps may be constructed of earth fill or wooden planks within deep walled trenches to allow for animals to escape, if necessary. Before such holes or trenches are backfilled, they should be thoroughly inspected for trapped animals. If trapped wildlife is observed, escape ramps or structures will be installed immediately to allow escape. CM 5. On Site Overnight Storage. All construction pipes, culverts, or similar structures that are stored at a construction site for one or more overnight periods should be Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 13 thoroughly inspected for birds and other wildlife before the pipe is subsequently buried, capped, or otherwise used or moved. Species-Specific Conservation Measures San Bernardino Kangaroo Rat CM 6. Exclusionary fencing will be erected in construction areas known to be occupied by SBKR or containing kangaroo rat sign (e.g., burrows, scat, tail drags, or dust baths) as determined by a preconstruction survey by a qualified biologist (i.e., City Creek or Redlands Basins).The fencing configuration and materials will meet the specifications found in Appendix A. An alternative fence design or material may be used upon approval of the USFWS. Proposed fence installations will be submitted to the USFWS for review and approval. No ground disturbance may occur prior to approval of the design. a. A qualified biologist or approved biological monitor will be present on site when the fence is installed to minimize disturbance of SBKR burrows from fence installation. b. The integrity of the fencing will be checked by a qualified biologist at the end of each work day. Any gaps greater than 0.5 inch will be repaired immediately. c. Construction access openings will be closed and secured at the end of each work day using the at-grade fencing method. d. The fence will remain in place for the duration of construction activities and removed at the completion of the relevant Project activity. CM 7. A qualified biologist will initiate preconstruction trapping within each fenced construction zone the evening of the day on which the fence is installed to remove as many SBKR as possible from within each fenced area. a. Trapping will be conducted for 5 consecutive nights or until no SBKR are captured for 2 consecutive nights. b. Any SBKR removed from within the construction zone will be relocated outside of the fenced area to an area which is safely away from the construction activities. c. Monthly reporting will occur during Project construction in SBKR habitat areas and include all sensitive species detected in the vicinity of the work areas, and all construction-related actions that may have directly affected SBKR. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 14 CM 8. Handling and relocating SBKR will be conducted as follows: a. Individual SBKR will be held for no longer than 1 hour before releasing them, and they will be relocated as quickly as possible. b. Animals will not be held in plastic bags; they will be transferred in a clean, structurally sound, breathable container with adequate ventilation. c. Animals will be handled and temporarily held in a manner and conditions which will prevent them from becoming stressed due to temperature extremes (either hot or cold) at any time. CM 9. Construction within fenced areas will begin no more than 5 days after fence placement (i.e., at the conclusion of maximum number of days in which trapping is conducted); or if this is not possible, the preconstruction trapping will be extended or repeated. CM 10. The qualified biologist or approved biological monitor will visually inspect trenches and steep-walled holes, as in Measure 4b above, before the onset of daily construction for the presence of SBKR. If SBKR are discovered, the biologist will supervise the movement or relocation of the equipment until the animal has left the area on its own or capture the animal and release it outside the exclusionary fence in suitable habitat as close as possible to where it was discovered. CM 11. To the extent feasible, soil stockpiles in SBKR habitat will be located within the construction area inside the exclusionary fence. If soil stockpiles must be located in SBKR habitat outside the main construction area, they will be located in areas where there is no kangaroo rat sign, as determined by a qualified biologist. Exclusionary fencing will be placed around soil stockpiles outside the main construction area to minimize the potential for SBKR to access them. They will be inspected prior to daily construction for evidence of kangaroo rat sign by a qualified biologist. If sign is detected trapping and relocation of SBKR will be conducted as described above. CM 12. Nighttime construction and night lighting will not be allowed. CM 13. Valley District will prepare and implement a revegetation plan to replace temporarily impacted habitat in proposed impact areas (i.e., City Creek and Redlands Basins) or lands conserved as compensatory mitigation. The revegetation plan will be submitted to the USFWS a minimum of 60 days prior to commencing construction activities in native habitat. At minimum, the revegetation plan will include the following elements: a. Relevant conditions of Project permits and this biological opinion. CM 13.Valley District will prepare and implement a revegetation plan to replace y pp p g p p temporarily impacted habitat in proposed impact areas (i.e., City Creek and pyp pp p (, y Redlands Basins)or lands conserved as compensatory mitigation Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 15 b. Clear guidelines and quantifiable success criteria to measure progress toward fulfilling relevant conditions and to determine that implementation has been successfully completed. c. Performance standards to set appropriate quantitative and qualitative measurements of coverage and diversity of the scalebroom scrub vegetation and non-native vegetation to assure that the effort is progressing toward replacement of habitat to pre-Project levels of cover and diversity, or high quality as approved by the USFWS. Within 5 years after commencing revegetation efforts, cover and diversity should have progressed toward an intermediate phase of scalebroom scrub. Both early and intermediate stages of scalebroom scrub (native perennial plant cover 30 to 50 percent) and limited non-native plant species cover (less than 10 percent) provide suitable habitat for SBKR and woolly-star. d. Guidelines and specifications for salvage and redistribution of topsoil, vegetative debris, and organic material (“duff”), as well as other pertinent planting specifications. e. Guidelines for controlling and monitoring invasive, non-native plants. f. Specifications for seed application including guidance for materials and source material, rates of application, and appropriate application methods and timing specifications, and methods will be based on locally successful SBKR habitat restoration projects within the watershed. g. Descriptions of maintenance and monitoring methods to promote successful implementation of the plan. CM 14. All Project-related impacts to scalebroom scrub habitat in City Creek and the Redlands Basins are within the designated critical habitat for SBKR (Table 1; see section on Direct Effects to SBKR). Permanent impacts to designated critical habitat in City Creek (outlet structure, 0.02 acres; habitat type conversion, 8.2 acres) and in Redlands Basins (outlet structure, 0.02 acres), will require off- site compensation at a ratio of 3:1 acres (occupied, 4.12 acres) or a ratio of 2:1 acres (unoccupied, 4.12 acres). Temporary impacts to designated critical habitat in City Creek and Redlands Basins will be compensated at a ratio of 2:1 acres (occupied, 0.48 acre) or a ratio of 1:1 acres (unoccupied, 0.18 acres). All SBKR habitat temporarily impacted during construction will be restored in accordance with the approved revegetation plan. Compensatory mitigation of 21.74 acres may be provided through: (1) the conservation and management of scalebroom scrub habitat (at least 13.32 acres of which are occupied), (2) the purchase of equivalent credits from a Conservation Bank approved by the USFWS, or another equivalent CM 14. Compensatory mitigation of 21.74 acres may pp g ppyg be provided through:(1) the conservation and management of scalebroom scrub pg() habitat (at least 13.32 acres of which are occupied), Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 16 compensatory mitigation option approved by the PSFWO in writing prior to initiation of Project construction. Santa Ana River Woolly-Star CM 15. Prior to ground disturbance, a qualified botanist will conduct preconstruction surveys for woolly-star in areas of suitable habitat where disturbance will occur as a result of construction (excluding paved roads and road shoulders) using the California Department of Fish and Wildlife’s [CDFW, formerly the California Department of Fish and Game (CDFG)] November 2009 guidance for Protocols for Surveying and Evaluating Impacts to Special Status Native Plant Populations, as appropriate. CM 16. If a woolly-star plant is found occurring in a Project work area and it may be impacted by the Project, the USFWS will be notified within 3 working days of the finding. If occupied habitat cannot be avoided all work will stop in occupied areas. If it is determined that avoidance is not feasible consultation with the USFWS will be reinitiated. Santa Ana Sucker CM 17. The following measures will avoid, minimize, and offset Project-related impacts to SAS associated with up to 1.21 acres of permanent degradation of occupied designated critical habitat in the mainstem of the Santa Ana River from the RIX outfall downstream to approximately Mission Boulevard. a. Valley District will prepare and implement the HMMP which will identify habitat improvement actions and methods for implementation, monitoring, and maintenance. The diversion of wastewater flow from the RIX Facility to the SNRC will not occur until Valley District’s Santa Ana Sucker HMMP has been approved by the USFWS and the actions proposed in this measure have been completed or show evidence of significant progress toward successful implementation such as engineering design(s) and/or other regulatory compliance such as the California Environmental Quality Act, or consultation with the USFWS will be reinitiated. b. The HMMP will include the measures listed below to offset direct and indirect impacts to SAS and its habitat resulting from the loss of up to 22.3 percent (6.43 MGD of 28.4 MGD calculated from the November 2014 to May 2016 discharge) discharge from the RIX outfall into the Santa Ana River. The HMMP will contain measures to increase the number of individual SAS in the Santa Ana River, increase the area of suitable and occupied habitat in this watershed, and establish two new populations in the watershed. It will be implemented by a contracted, qualified, and permitted CM 17. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 17 entity in coordination with the USFWS. The HMMP will specify goals and performance criteria for each conservation measure and include the following elements: i. Habitat Node Creation (microhabitat enhancements) to offset the potential reduction of suitable habitat available to sucker, including the above listed habitat features, resulting from decreased flow, decreased water velocity, and decreased sand transport. Objective: Increase the total area of suitable habitat available to sucker, including riffles, small scour pools, and exposed patches of gravel/cobble substrate by strategically placing a series of structures within the stream flow to manipulate water movement and create these microhabitat areas. This measure is expected to enhance perennial stream habitat within at least 1.5 acres of occupied habitat along about 2.5 miles of river, as measured by the area of pools created, gravel/cobble substrates exposed, and other functional SAS habitat features created/enhanced. The creation of all 6 habitat nodes will occur prior to any water diversions. If future data suggests that impacts to the species are either greater than expected or habitat nodes cannot be created to functionally offset Project impacts, the Project will obtain technical assistance from the USFWS to develop a new or revised CM that will achieve the biological objective(s) as analyzed in this opinion, or consultation with the USFWS will be reinitiated. The Project will implement microhabitat enhancements (habitat nodes) within ecologically valuable segments of the Santa Ana River downstream of the RIX discharge location to improve the abundance and distribution of the above mentioned SAS habitat features. Enhancements will include the use of natural materials to increase scour and pool formation. Substrate augmentation (e.g., river gravel and cobble) may also occur in the same area to enhance perennial stream habitat function. Examples may include placement of large boulders and/or large woody debris to increase velocity of flow and gravel bar patches as well as deep pool refugia areas. A minimum of six habitat nodes will be created. One naturally occurring riffle/pool feature (natural node) in the Santa Ana River was observed to enhance the stream habitat for SAS for approximately 330 feet (100 meters, 0.25 acres). Between 2015 and 2016 the USGS Native Fishes Survey found that the relative abundance of exposed gravels increased in this area suggesting that the size of the Habitat Node Creation (microhabitat enhancements) Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 18 affected area associated with the node is subject to fluctuate based upon environmental conditions and the abundance of fine sediment in the inset channel (SAS occupied stream) (Brown and May 2016, 2017). Although all nodes will be unique in design, each will serve to replicate the scale and provide similar ecological functions as the natural node discussed above. The nodes will be located in the Santa Ana River mainstem between the RIX outfall and River Road Bridge. To maximize habitat value and function locations should be associated with mainstem tributaries (Evan’s Lake, Arroyo Tequesquite, Sunnyslope Drain, Anza Drain, Hole Creek, etc.). Locations will need to be further refined by field survey data. Habitat nodes will be monitored annually and the survey data will be used to assess the need for corrective measures. Annual monitoring will include, at minimum, water quality, visual estimates of substrate cover types, and fish surveys. When the cumulative cover of boulder, cobble, and gravel is found to be less than 35 percent for any habitat node (mean cover measured over a 0.25 acre reach associated with a node), maintenance and/or reinstallation of nodes will be conducted to maintain a minimum of 0.25 acres of habitat enhancement for every node or a cumulative enhancement of 1.5 acres for all six nodes. All work conducted in the Santa Ana River will be done in coordination with the USFWS and CDFW. If vegetation removal is required for ingress, egress, or other work areas associated with Habitat Node creation and maintenance it will be revegetated. Quantitative and qualitative performance standards addressing vegetation cover and diversity will be included in the HMMP. Within 3 and at most 5 years after commencing revegetation efforts, cover and diversity should have progressed toward pre-Project levels of cover and diversity, or higher quality for the benefit of vireo and SAS. It is not anticipated that maintenance work, requiring vegetation removal, will be needed more frequently than every 5 years. ii. Aquatic Predator Control Program to offset the potential increase in non-native predator habitat (pools or other microhabitats that provide relatively deep and slow velocity water flow) resulting from reduced discharge volume. Objective: Reduce the abundance of non-native predators in the reach of river affected by the Project so as to maximize native fish survival. Aquatic Predator Control Program Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 19 The non-native predator removal program will be focused on reducing the abundance of non-native aquatic predators immediately preceding the start of the sucker spawning season (approximately March 1). Species to be removed may include non-native fish, amphibians, and reptiles such as mosquitofish, largemouth bass, black bullhead catfish, green sunfish, red-eared slider, African clawed frog, and American bullfrog. This activity will occur at minimum of one time per year outside of the SAS spawning season (August 1 to February 28). The most recent fish and/or other surveys conducted upstream of Prado Basin in the Santa Ana River will provide the locations of where to conduct electroshocking. Electroshocking will be carried out by a USFWS-approved SAS biologist authorized to use electroshock sampling methods. Pre-spawning predator removal will occur annually prior to February 15 in areas of highest ecological value to SAS reproduction, currently from Rialto Channel downstream to approximately Mission Boulevard and in mainstem tributaries. If aquatic predators are found in abundance after pre-spawning predator removal, a second predator removal will be conducted after August 1. iii. Exotic Weed Management Program to reduce competitive stress for native vegetation within the riparian community in order to offset the impacts associated with reduced water availability resulting from the Project. Objective: Maintain a low abundance and cover of non-native vegetation along the Santa Ana River and in City Creek within the Project impact area (RIX outlet to Mission Boulevard and Boulder Avenue to Alabama Street, respectively), focusing on the removal of giant reed, tamarisk, and castor bean. The exotic weed management program will be carried out by a qualified and experienced entity and will focus on controlling the non- native vegetation within the riparian corridor between the Rialto Channel and the Mission Boulevard Bridge (approximately 4.2 miles). This measure will establish and maintain weed control in one-third of the area (approximately 1.4 miles) per year, so as to complete the weeding of the entire area once every 3 years. Annual work plan meetings between the USFWS, Valley District staff, and contractor will identify areas of concern and focus work efforts on those areas. A successful program will maintain total cover of non-native riparian species to less than 25 percent and total cover of giant reed, tamarisk, and castor bean to less than 5 percent. Percent cover will be assessed relative the total area of the weeded riparian corridor for that year. ggExoticWeed Management Program Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 20 Although they are native species, cattails (Typha spp.) and bulrush (Schoenoplectus spp.) may increase in abundance over time as their preferred habitat type (slow, shallow water or marsh) is expected to increase due to Project reductions of flow. These plant species may degrade sucker habitat by further reducing water velocity and trapping fine sediment. Problem areas will be identified as part of the Riverwalk survey (see below for more on Riverwalk survey) and if certain areas have become problematic they will be managed in coordination with the USFWS and CDFW. iv. Rialto Channel Water Temperature Management to offset the potential loss of suitable habitat downstream in the Project impact area during times of the year when habitat will be most affected from the cumulative impacts from reduced discharge and drought effects, particularly in summer and fall. Objective: Reduce water temperatures in Rialto Channel to tolerable levels (less than 86 degrees Fahrenheit) during summer months. In recent years the temperatures within the natural bottom reach of Rialto Channel (not concrete lined section) were found to be generally greater than 80 degrees Fahrenheit in summer and fall (USGS 2015) and often warm enough to be outside of the tolerable range for sucker (USFWS 2010b). In order to decrease the water temperature in Rialto Channel to tolerable levels for SAS relatively cool groundwater (67 – 70 degrees Fahrenheit, temperature range derived from local nearby well operators), from up to 4 wells or other water sources will be added to the flows in Rialto channel. In order to implement this measure most effectively, two water quality monitoring stations will be established in Rialto Channel. An upstream, real-time gage will measure the water temperature at the well input location (plunge pool downstream of Agua Mansa Bridge). At 85 degrees Fahrenheit the groundwater wells will automatically turn on and release directly into the plunge pool. Another real-time gage will be installed downstream of the plunge pool Rialto Channel just before the confluence with the Santa Ana River and. Once the water temperature at this downstream gage is less than 82 degrees Fahrenheit the well input will be turned off. Initiation and cessation of well water input (discharge) will be phased over a period of time to reduce sudden changes in flow and temperature in Rialto Channel. The well input and controls will be constructed and tested prior to diversion of flows from the RIX facility to the SNRC. This program will be deemed successful if there are 5 or fewer days between June 22 Rialto Channel Water Temperature Management Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 21 and September 21 that the daily maximum water temperature exceeds 82 degrees Fahrenheit and SAS are present in the channel during the same period. Water temperature will be measured in Rialto Channel upstream of the RIX outfall. If success criteria are not met within 2 years of signing the biological opinion, the Project will obtain technical assistance from the USFWS to develop a new or revised CM that will achieve the biological objective(s) as analyzed in this opinion. v. Upper Watershed SAS Population Establishment to offset potential losses of suitable habitat in the Project’s impact area, and to offset unknown and/or cumulative impacts to the species and its habitat that may be associated with the reduction of flow to the Santa Ana River. Objective: Increase the abundance, distribution and resilience of the sucker population in the Santa Ana River Watershed by establishing redundant populations in upper watershed tributaries. Subject to the availability of sufficient source fish, the Project will establish two new locations of sucker within City Creek and Hemlock Creek, or another suitable unoccupied location within the former range of the species within the Santa Ana River watershed as approved by the USFWS. Both City and Hemlock creeks have been analyzed as part of the Santa Ana Sucker Translocation Plan (Dudek 2016a, 2017). Valley District has assessed the habitat availability and appropriateness for SAS in City and Hemlock creeks (Dudek 2016b). These documents show that portions of each of these streams have the necessary primary constituent elements (PCEs) to support SAS, as well as additional factors found to be important to SAS (Aspen 2016). The Translocation Plan is currently under review by the USFWS, CDFW, and U.S. Forest Service (USFS). Prior to Project flow reduction to the Santa Ana River, at least one translocation of SAS will have occurred and Valley District will provide data indicating that the nascent population is healthy, reproducing, and appears to be successfully establishing. Successful establishment of SAS will have occurred when there are surviving and reproducing fish in at least two size classes, the population of SAS is stable or increasing in population as averaged over 5 years, and the translocated population is distributed throughout the appropriate habitat in the translocation stream 1. 1 Based upon recent surveys conducted by the HCP (Dudek 2016b, 2017) more than 5 miles of potential SAS habitat occurs on City Creek, upstream of Highland Avenue, and approximately 1.5 miles exist on Hemlock Creek (see also RCRCD 2016). Upper Watershed SAS Population Establishment Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 22 If success criteria are not met in both translocation tributaries within 5 years of signing the biological opinion, the Project will obtain technical assistance from the USFWS to develop a new or revised CM that will achieve the biological objective(s) as analyzed in this opinion. The HMMP will identify and further detail the goals and success criteria of SAS re-establishment and include the amount of financial assistance to be provided by Valley District for the regionally- beneficial population establishment program, including additional measures found below. A. Valley District will contract with a USFWS-approved entity that can demonstrate the ability to re-introduce captively-bred SAS to a suitable unoccupied location with the intent of establishing a new self-sustaining population within the former range of the species on the Santa Ana River. The Contract requirements will include the following: (1) rearing and maintaining a sufficient number of breeding adults to support re-introduction of a minimum of 500 juvenile SAS into the target area per year (or alternate numbers agreed to by the USFWS); (2) annual relocations for the first 3 years, then as needed to maintain a stable population size and genetic diversity; and (3) monitoring, adaptive management, and annual reporting. B. Valley District may reintroduce captive-bred SAS if (1) captive breeding documentation has been approved by the USFWS and CDFW and (2) the captive breeding facility has adequate numbers of appropriate sized SAS. If these conditions are not met or if additional fish are needed for translocation purposes SAS may be translocated from the Santa Ana River to the west fork of City Creek and one other historic tributary in the Santa Ana River watershed 2. C. If, at any time, SAS are found located downstream Highland Avenue Bridge, Valley District will be responsible for relocating all SAS back upstream within the boundaries of the San Bernardino National Forest or out of locations that where their presence might affect other entities who do not have incidental take exemptions for this species. This measure will be implemented for the life of the Project or until another entity, such as the HCP, takes over this responsibility. 2 Guidelines for take of SAS for recovery actions are addressed in the 2015 programmatic biological opinion for SAS recovery permits (USFWS 2015a). If, at any time, SAS are found located downstream Highland ,y,g Avenue Bridge, Valley District will be responsible for relocating g ,y p all SAS back upstream within the boundaries of the Sanp Bernardino National Forest Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 23 vi. Annual Monitoring of the Santa Ana River to track the suitability and habitat for SAS following implementation of the Project and its conservation measures. Objective: Identify any key effects to the hydrology or biology of the River that may result from reduced flow due to this Project. The HMMP will outline a monitoring program to collect hydrology data in the segment of river between the RIX outlet and Mission Boulevard and within the habitat node creation reaches. Hydrology data will include water quality (flow velocity, temperature, and depth), visual observations of substrate, and other surface topography, and fish surveys. Annual reporting will include summaries of the non-native plant and aquatic predator removals and any adaptive management actions taken in the past year, and will be submitted to the USEPA, State Water Board, and USFWS by April 30 for review and comment. All long-term monitoring and management activities will be completed by the Project proponent per the commitments included in the HMMP and required by this biological opinion until the HCP is finalized and permitted or until incidental take associated with the Project becomes covered by another mechanism. In order to make best use of the existing Riverwalk habitat survey dataset, (Riverwalk which has been conducted annually in the fall for the past 11 years), the Project will provide support to Riverwalk organizers, whether financial or in-kind services and develop the long- term monitoring methodology to be complementary to the Riverwalk survey data collection to provide a greater understanding of habitat availability throughout the entire system. The locations of the habitat nodes, as described above, will be added to the Riverwalk survey area as non-random transects. At least one year’s worth of baseline data that captures the entire river corridor (Riverwalk points 9 to 118) will be recorded prior to a reduction in discharge flow from RIX. ACTION AREA The implementing regulations to section 7(a)(2) of the Act describe the action area to be all areas affected directly or indirectly by the Federal action and not merely the immediate area affected by the Project (50 CFR § 402.02). The action area is the area of potential direct or indirect effects of the proposed action and any interrelated or interdependent human activities; the direct and indirect effects of these activities include associated physical, chemical, and/or biological effects of considerable likelihood (USFWS and NMFS 1998). Indirect effects are those that are caused by the proposed action and are later in time but are still reasonably certain to occur (50 CFR § Annual Monitoring of the Santa Ana River Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 24 402.02, USFWS and NMFS 1986). Analyses of the environmental baseline, effects of the action on the species and designated critical habitat, cumulative effects, and the impacts of the incidental taking, are based upon the action area as determined by the USFWS (USFWS and NMFS 1998). We have defined the action area to include the collective Project components (SNRC, pipeline corridor along City Creek, and discharge locations) and the potential areas of direct and indirect effects to the listed species addressed in this consultation, including the Santa Ana River from Rialto Channel downstream to River Road Bridge, and the west fork of City Creek downstream to Alabama Street, excluding the reach of the creek from Highland Avenue to Boulder Avenue (approximately 3,282 acres within the Santa Ana River watershed) (Figure 1). 1. San Bernardino kangaroo rat. Direct effects to SBKR are expected in the 100 feet on either side of the centerline of the proposed 24-inch pipeline along City Creek, at the discharge structure in City Creek, at the Redlands Basins, and in the thalweg of City Creek where direct effects to SBKR may occur (approximately 58 acres). All access roads are included in the 100-foot buffer areas above. The area of indirect effects is the reach of City Creek that is expected to contain 6 to 10 MGD of discharge flow where type conversion of scalebroom scrub to riparian woodland is expected to occur (approximately 8.2 acres). 2. Santa Ana sucker: Direct effects to SAS are from the reduced river flow are expected to cause a re-sorting or redistribution of individuals as changes to water depth and flow velocity alter the stream habitat. Direct and indirect effects to SAS are expected in the Santa Ana River extending for approximately 18.5 miles; including and downstream of Rialto Channel (earthen portion starting downstream of Agua Mansa Road) to near the upstream terminus of the Prado Basin at River Road Bridge where direct beneficial effects to SAS may occur (approximately 3,132 acres). This area will be affected by the reduction in discharge from the RIX outfall and by the proposed CMs located in the mainstem of the Santa Ana River. We anticipate Project-related effects to the perennial aquatic environment (the river) to include reduced abundance of high velocity aquatic microhabitats, reduced area of exposed gravel beds, reduced area of wetted channel (channel constriction), and reduced area of riparian vegetation, as well as increased abundance of slow velocity aquatic microhabitats (marsh habitat), increased area of fine-grained sediment (sand or silt), and increased abundance of aquatic predators, once SNRC initiates wastewater diversion. This area encompasses the range of SAS upstream of Prado Basin where permanent reductions in the amount and quality of appropriate habitat of the species may occur in association with the Project. Habitat enhancement (creation of six habitat nodes, non-native vegetation removal, and non- native aquatic predator control) is also proposed in this area. SAS captive propagation activities will be carried out in disturbed/developed locations and existing facilities. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 25 Direct effects to SAS are expected in City Creek extending for approximately 4.6 miles upstream of Highland Avenue Bridge in City Creek to the west Fork of City Creek (approximately 28 acres). SAS do not currently occur in City Creek but the reintroduction of the species is proposed as Conservation Measure 17b.v. The footprint for these activities will be small, not involve ground disturbance, and will only use hand-carried equipment. The entire reach of City Creek that may be occupied by SAS is included in the action area. In addition to City Creek, a second Santa Ana River tributary, presumably Hemlock Creek, will be selected for SAS reintroduction. Disturbance to this tributary will be similar to that analyzed for City Creek. Long-term monitoring of all of the current and new SAS populations (Santa Ana River, City Creek, and one other tributary) will temporarily disturb the aquatic habitat as part of the annual monitoring. STATUS OF THE SPECIES/CRITICAL HABITAT San Bernardino Kangaroo Rat Listing Status The San Bernardino kangaroo rat is a subspecies of Merriam’s kangaroo rat (Dipodomys merriami). SBKR was emergency listed as endangered on January 27, 1998 (USFWS 1998b), and listed as endangered on September 24, 1998 (USFWS 1998c). Critical habitat for SBKR was first proposed on December 8, 2000 (USFWS 2000a), and designated on April 22, 2002 (USFWS 2002a). Critical habitat for SBKR was subsequently re-proposed on June 19, 2007, and a revised designation of the critical habitat was made final on October 17, 2008 (USFWS 2007 and USFWS 2008, respectively). Following a 2009 lawsuit challenging the 2008 critical habitat designation, the court ruled and vacated the 2008 designation and reinstated the 2002 critical habitat designation on January 8, 2011. We completed a 5-year review of the status of SBKR in August 2009 (USFWS 2009). The 5-year review recommended no change in the listing status of SBKR. Please see the 5-year review for more specific information on the subspecies description, habitat affinities, life history, status and distribution, threats, and conservation needs of SBKR across its current range (USFWS 2009). Additional information is also available in the 2002 final rule to designate critical habitat (USFWS 2002a). Both documents are available at: http://ecos.fws.gov/speciesProfile/profile/speciesProfile.action?spcode=A0G8 Habitat Affinities Soil texture is a primary factor in determining species distribution in most heteromyid rodents, which include kangaroo rats and pocket mice (Brown and Harney 1993). In general, SBKR appear to prefer well-drained, sandy substrates associated with alluvial systems, where they are able to dig simple, shallow burrow systems (McKernan 1997). Soil texture and vegetation are influenced by periodic flood events within the alluvial floodplains which confine the range of this species. SBKR are most frequently found within scalebroom scrub (Lepidospartum Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 26 squamatum) shrub alliance (Sawyer et al. 2009), which contains the appropriate mix of sandy soils and low density shrub cover SBKR prefer. Status and Distribution The primary factor influencing the decline of SBKR is habitat loss throughout the species’ range. Historically, SBKR occupied alluvial floodplains and adjacent upland habitats within the San Bernardino, Menifee, and San Jacinto Valleys of San Bernardino and Riverside Counties in California (USFWS 1998c). These areas have been under intense development pressure for the past century which has reduced the range of suitable habitat for SBKR. Currently, the Santa Ana River and its tributaries, Lytle Creek and Cajon Creek, and the San Jacinto River and its tributary, Bautista Creek support the largest areas of occupied habitat. The largest remaining population of SBKR is thought to reside within the Santa Ana River basin. The Santa Ana River critical habitat unit encompasses approximately 8,935 acres and includes the Santa Ana River, and portions of City, Plunge, and Mill Creeks (USFWS 2002a). SBKR is known to occur within the upper reaches of the Santa Ana River from approximately 3.5 miles above the confluence of Mill Creek and the Santa Ana River to approximately 0.5 miles downstream of Tippecanoe Avenue in the city of San Bernardino. Operation of the Seven Oaks Dam has altered natural fluvial processes downstream within the Santa Ana River for flood control purposes. The USACE established the 764-acre Santa Ana River Woolly-star Preserve Area to offset impacts associated with the operation of this dam (USFWS 2002b), and its boundary was expanded to approximately 804 acres in 2009. Within the Santa Ana River floodplain, SBKR occupy habitat within a mosaic of undisturbed habitat and developed areas, often utilizing less suitable habitats such as water spreading grounds, airports, sand and aggregate mining operations, and citrus groves (USFWS 2009). A small yet dense population was recently found in marginal habitat surrounded by urban development (USFWS 2015b, 2016). City Creek is often manipulated by the local flood control district and contains drop structures that alter flow dynamics and restrict SBKR movement within the drainage. Plunge Creek has been channelized and re-directed into a detention basin to avoid mining operations, thus this habitat is fragmented and largely isolated from other areas within the Santa Ana River population (USFWS 2009). The Santa Ana River population of SBKR, as well as the Lytle/Cajon Creek population, will be covered under the proposed Upper Santa Ana River Wash Habitat Conservation Plan (Wash Plan) and the HCP. Threats to the Species in the Vicinity of the Action Area Range-wide threats to the species include habitat destruction, degradation, and fragmentation resulting from urbanization, mining operations, flood control projects, groundwater recharge operations (spreading basins), bridges, recreational off-highway vehicle (OHV) use, and agriculture (USFWS 2009). These activities are associated with an increasing human population within San Bernardino and Riverside Counties, with the majority of the population living in the western portions of these counties. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 27 In the Santa Ana River system, development of the historic floodplain, flood control facilities, water management activities (ground water recharge), surface mining and habitat loss, destruction and/or degradation pose the largest threats to SBKR and its habitat. Additionally, activities such as dumping and recreational activities continue to threaten SBKR and the ecological value of its critical habitat in the vicinity of the action area. OHV use destroys and degrades many acres of alluvial fan scrub occupied by SBKR in the Santa Ana River by directly damaging plant communities, the soil crust, and burrow systems of SBKR (USFWS 2009). SBKR habitat in City Creek has been constrained by channelization. Channel maintenance for flood control purposes has limited and fragmented patches of suitable alluvial fan scrub in the Creek, and has eliminated most of the upland refugia habitat associated with the Creek. Groundwater recharge occurs by percolating either imported or local water supplies into groundwater basins or within the natural channel. It is a long-standing and ongoing activity in the Santa Ana River watershed. Groundwater recharge areas are generally unsuitable for SBKR because of the periodic presence of standing water and the degradation of alluvial fan scrub (USFWS 2009). The existing Redlands Basins, located adjacent to the Santa Ana River, were created for the purpose of groundwater recharge. Conservation Needs in the Vicinity of the Action Area Conservation and recovery of SBKR near the action area will depend upon the same sort of actions required to conserve and recover the species across its extant range (USFWS 2002a). The natural ecosystem processes necessary to maintain a dynamic mosaic of habitats for SBKR should be maintained or improved to restore the natural fluvial regime, or alternatively management should be provided to replace natural scour, sand transport and deposition, and the associated plant community responses. Long-term viability for all SBKR populations also depends on maintaining occupied refugia habitat adjacent to active floodplains to serve as sources of animals to recolonize river wash habitat after major flood events. Ameliorating the threats to the species’ survival (such as hydrologic alteration from flood control and water management) would benefit the conservation of the SBKR in the area. In addition, the establishment and restoration of upland refugia habitat, and instituting protection and management of additional suitable habitat locations throughout its range, would help conserve this species. In some areas, maintenance of appropriate habitat conditions may require active management to sustain SBKR over time, like periodic removal of nonnative plants, particularly annual grasses, and thinning of shrubs and overall vegetative cover. To conserve and recover SBKR, additional occupied areas should be protected and managed to increase the local abundance of animals and to secure existing populations. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 28 Critical Habitat Designated critical habitat for SBKR encompasses approximately 33,295 acres in San Bernardino and Riverside Counties. A detailed description of each critical habitat unit can be found within the 2002 final rule designating critical habitat (USFWS 2002a). PCEs, which have recently been renamed Physical and Biological Features, are used to designate critical habitat in accordance with section 3(5)(A)(i) of the Act and regulations at 50 CFR 424.12. The PCEs for SBKR designated critical habitat are: (1) Soil series consisting predominantly of sand, loamy sand, sandy loam, or loam; (2) Alluvial sage scrub and associated vegetation, such as coastal sage scrub and chamise chaparral, with a moderately open canopy; (3) River, creek, stream, and wash channels; alluvial fans; floodplains; floodplain benches and terraces; and historic braided channels that are subject to dynamic geomorphological and hydrological processes typical of fluvial systems within the historic range of SBKR. These areas may include a mosaic of suitable and unsuitable soils and vegetation that either (a) occur at a scale smaller than the home range of the animal, or (b) form a series of core areas and linkages between them; and (4) Upland areas proximal to floodplains with suitable habitat (e.g., floodplains that support the soils, vegetation, geomorphological, and hydrological and aeolian processes essential to this species). These areas are essential due to their geographic proximity to suitable habitat and the functions they serve during flooding events. These areas may include marginal habitats such as agricultural lands that are disced annually, out-of-production vineyards, margins of orchards, areas of active or inactive industrial or resource extraction activities, and urban/wildland interfaces (USFWS 2002a). Long-term conservation of SBKR within each unit of critical habitat depends on the protection and management of occupied habitat on alluvial fans, washes, and associated floodplains; the protection of linkages between core areas to maintain gene flow and minimize the loss of genetic diversity (Lande 1988); the protection of upland areas adjacent to more suitable habitat that serve as refugia from lower portions of the floodplain during large scale flooding events and/or provide source populations for recolonization of the lower floodplain after the flooding has subsided; and the protection of geomorphological, hydrological, and aeolian (wind-driven) processes essential to the continued existence and conservation of suitable habitat. The location and dynamic nature of the alluvial habitat occupied by this species makes it especially vulnerable to flood control activities through the drainages in which it occurs (USFWS 2002a). City Creek and the Redlands Basins, the two areas where the Project is expected to affect SBKR, are within Critical Habitat Unit (Santa Ana River). Both City Creek and the Redlands Basins are at risk of becoming isolated from the larger distribution of SBKR in the Santa Ana River Critical Habitat Unit by habitat fragmentation from surface mining, flood control and groundwater management activities. Santa Ana Sucker The following section summarizes information about the legal status and biology of sucker. This information is drawn from the following documents which provide more-detailed information on the range-wide status, threats, and conservation needs of this species, please refer to the final rule Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 29 on listing SAS (USFWS 2000b), the final rule designation of critical habitat for SAS (USFWS 2010b) at https://www.gpo.gov/fdsys/pkg/FR-2010-12-14/pdf/2010-30447.pdf#page=2, the Santa Ana sucker (Catostomus santaanae) 5-Year Review: Summary and Evaluation (USFWS 2011) at http://ecos.fws.gov/docs/five_year_review/doc3616.pdf, and the Draft Recovery Plan for Santa Ana sucker (Catostomus santaanae) (USFWS 2014b) at https://www.fws.gov/carlsbad/SpeciesStatusList/RP/201411xx_Draft%20RP_SASU.pdf. Listing Status The sucker was listed as threatened on April 12, 2000 (USFWS 2000b). In our most recent 5- Year Review we recommended no change in listing status (USFWS 2011). Habitat Affinities The sucker generally inhabits perennial streams that are naturally subject to periodic, severe flooding. Water-depth can range from a few inches to several feet and with currents from slight to swift; in-stream gradient is typically less than 7 degrees. The presence of coarse substrates (gravel and cobble) is important to create suitable foraging habitat for suckers and a combination of shallow riffle areas and deeper runs and pools provides optimal stream conditions for these fish. Suckers use different substrate types as they develop through each life stage (i.e., from eggs to larval, young-of-the-year, juvenile, and adult fish) with the presence of some rock, cobble, and/or gravel being important to egg-laying and development of the algae upon which suckers feed. Suckers prefer areas with in-stream or bank-side riparian vegetation to provide shade and cover especially for larvae and juvenile fish; vegetation cover is less important for larger, adult fish when deeper pools and riffles are present. Open, unvegetated stream-reaches with shifting, sandy substrates are typically less suitable habitat for sucker as little, if any forage will develop there and water typically slows, becomes more shallow, and hence, warmer in these areas. Suckers are most abundant in unpolluted, clear water at temperatures that are typically less than 72 degrees Fahrenheit (Moyle 2002), although they tolerate water quality variables that are outside of the preferred range (e.g., wastewater-dominated river and water temperatures in excess of 86 degrees Fahrenheit). Life History SAS feed on algae, diatoms, and detritus scraped from rocks and other hard surfaces. Aquatic insects are also a small component of their diet (Greenfield et al.1970, Haglund and Baskin 2003). The relative abundance of the SAS appears to decrease with increasing numbers of exotic fish including tilapia, green sunfish, largemouth bass, common carp, channel catfish, and others which are potential predators and competitors of the SAS (Swift 2001, Saiki 2000). They typically spawn in the first spring following hatching. Spawning generally begins in mid- March, peaks in April, and concludes by early July, although spawning has been noted as early as February and as late as August in the Santa Ana River. Spawning takes place over gravel riffles where fertilized eggs adhere to substrate and hatch within 360 hours. Female fecundity is Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 30 linearly related to body weight and ranged from 4,423 to 16,151 eggs (Greenfield et al.1970). The demersal (on the stream bottom) and adhesive eggs hatch larva approximately 7 millimeters in total length after 15 days (360 hours). At approximately 16 millimeters in size the mouth becomes subterminal (oriented down) and the larva transform to juveniles. Status and Distribution The listed entity of SAS is confined to three watersheds in Southern California: (1) Santa Ana River in San Bernardino, Riverside, and Orange counties; (2) San Gabriel River in Los Angeles County; and (3) Big Tujunga Creek, a tributary to the Los Angeles River in Los Angeles County (USFWS 2000b). Historically, suitable streams have been subject to periods of severe flooding as well as extended drought conditions typical of southern California weather (USFWS 2014b). At the time of listing we estimated that the historical range of the species had been reduced by at least 70 percent in each watershed and that the range and distribution of SAS was primarily limited by habitat modifications attributed to urbanization (e.g., dams, road crossings, cement- lined channels) (USFWS 2000b). The threats identified at the time of listing have not abated but have continued to increase, thereby making the species more vulnerable to extinction (USFWS 2011). The primary threat to SAS is habitat loss, degradation, and modification through hydrological modifications rangewide. Additionally, isolation by impassable barriers or unsuitable habitat limits gene flow within and between watersheds, thus increasing the vulnerability of small populations to a range of stochastic environmental and genetic factors (USFWS 2014b). SAS was historically documented throughout the upper and lower portions of the Santa Ana River watershed, including the mainstem from near the current location of Seven Oaks Dam to approximately 14 miles below Prado Dam and multiple tributaries including upper tributaries (e.g., City Creek), and lowland tributaries (e.g., Warm Creek, Lytle Creek, Rialto Channel, Evans Lake drain, Tequesquite Arroyo, Sunnyslope Creek, Anza Park drain, and Chino Creek) (USFWS 2014b). In contrast to the species’ range in the Los Angeles and San Gabriel Rivers, where the extant populations are in the upper portions of the watershed, the species is confined to the lowlands of the Santa Ana River watershed. Barriers to migration restrict the range of SAS to approximately 34 miles from South La Cadena Drive to near Imperial Highway (California State Route 90). The extent of habitat suitable for spawning in the mainstem varies from year to year but ranged from approximately 2.0 miles (measured in 2014) to 8.2 miles (measured in 2016) above Prado Dam between 2006 and 2016 (USFWS 2017). Few occurrence records since 2000 and no evidence of spawning suggest the species is doing extremely poorly downstream of Prado Dam (USFWS 2014b). The species is also known to occupy tributaries within this range, including Rialto Channel, Tequesquite Arroyo, Sunnyslope Creek, and Anza Park drain. Threats to the Species The final rule listing the species (USFWS 2000b) identified the following threats to SAS: habitat destruction, natural and human-induced changes in stream-flow, urban development and related land-use practices, intensive recreation, introduction of nonnative competitors and predators, and Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 31 demographics associated with small population size. The 5-year review for SAS (USFWS 2011) and the SAS recovery outline (USFWS 2012) identified the following threats to SAS: (1) modification, fragmentation, and loss of habitat attributable to (a) dams, (b) changes in water allocations, and (c) other hydrological modifications; (2) water quality degradation; (3) impacts to habitat due to recreation; (4) wildfire; and (5) potential effects of nonnative vegetation and predators. We believe the primary threat to SAS is rangewide modification, fragmentation, and loss of habitat through hydrological modifications. A detailed evaluation of all threats is included in the 2011 5- year review and in the SAS draft recovery plan (USFWS 2011, and 2014b, respectively). Wastewater-dominated rivers, like the Santa Ana River, are subject to increased inputs of regulated contaminants including inorganics (e.g., chlorine, nitrates, ammonia, sulfides and metals), plasticizers, organochlorine insecticides, polynuclear aromatic hydrocarbons, solvents, and non-ionic detergent metabolites. Wastewater-dominated rivers are also subject to inputs of as yet unregulated "emerging" contaminants including new generation pesticides, steroids and hormones, personal care products, prescription and non-prescription drugs, antibiotics, household disinfectants, insect repellants, fire retardants and others (USFWS 2011). Additionally, chemicals that are released may be regulated or unregulated pollutants and some may have detrimental impacts on water (habitat) quality and sublethal or lethal impacts on SAS. Conservation Needs Since listing, surveys for SAS have been conducted in various portions of its range. Species- specific projects have also been conducted in each of the three watersheds where SAS occur. There have been studies exploring life history parameters, population dynamics and demographics, habitat assessments, environmental conditions, possible restoration sites, and potential reintroduction opportunities. These studies have been important for making decisions regarding the status of the species and the current conditions within each of the watersheds. Other activities have also occurred for the benefit of SAS, such as removal of nonnative vegetation and nonnative predators. Examples of these activities and past research are listed in the SAS draft recovery plan (USFWS 2014b). Recovery of SAS is being achieved in part through on-the-ground recovery actions, implementation of management plans, and through active cooperation with partners through sections 7 and 10 of the Act. Critical habitat In 2010, we designated three critical habitat units that include approximately 9,331 acres of Federal, State, local, and private land in the Santa Ana River (Unit 1; San Bernardino, Riverside, and Orange counties), the San Gabriel River (Unit 2; Los Angeles County) and Big Tujunga Creek (Unit 3; Los Angeles County) (USFWS 2010b). Individual units are each intended to independently support a population of SAS in a functioning hydrologic system that provides suitable water quality, water supply, and coarse sediments. The designation lists the following PCE’s for SAS: (1) a functioning hydrological system within the historical geographic range of SAS that experiences peaks and ebbs in the water volume (either naturally or regulated) that encompasses areas that provide or contain sources of water and coarse sediment necessary to Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 32 maintain all life stages of the species, including adults, juveniles, larvae, and eggs, in the riverine environment; (2) stream channel substrate consisting of a mosaic of loose sand, gravel, cobble, and boulder substrates in a series of riffles, runs, pools, and shallow sandy stream margins necessary to maintain various life stages of the species, including adults, juveniles, larvae, and eggs, in the riverine environment; (3) water depths greater than 1.2 inches (3 centimeters) and bottom water velocities greater than 0.01 feet per second (0.03 meters per second); (4) clear or only occasionally turbid water; (5) water temperatures less than 86 degrees Fahrenheit (30 degrees Centigrade); (6) instream habitat that includes food sources (such as zooplankton, phytoplankton, and aquatic invertebrates), and associated vegetation such as aquatic emergent vegetation and adjacent riparian vegetation to provide shading to reduce water temperature when ambient temperatures are high, shelter during periods of high water velocity, and protective cover from predators; and (7) areas within perennial stream courses that may be periodically dewatered, but that serve as connective corridors between occupied or seasonally occupied habitat and through which the species may move when the habitat is wetted. ENVIRONMENTAL BASELINE Regulations implementing the Act (50 Federal Register §402.02) define the environmental baseline as the past and present impacts of all Federal, State, or private actions and other human activities in the action area. Also included in the environmental baseline are the anticipated impacts of all proposed Federal projects in the action area that have undergone section 7 consultation and the impacts of State and private actions that are contemporaneous with the consultation in progress. Climate Change As defined by the Intergovernmental Panel on Climate Change (IPCC), the term “climate” refers to the mean and variability of different types of weather conditions over time, with 30 years being a typical period for such measurements (IPCC 2013a, p. 1450). The term “climate change” thus refers to a change in the mean or variability of one or more measures of climate (for example, temperature or precipitation) that persists for an extended period, whether the change is due to natural variability or human activity (IPCC 2013a, p. 1450). Scientific measurements spanning several decades demonstrate that changes in climate are occurring, and that the rate of change has increased since the 1950s. Examples include warming of the global climate system, and substantial increases in precipitation in some regions of the world and decreases in other regions (for these and other examples, see Solomon et al. 2007, pp. 35–54, 82–85; IPCC 2013b, pp. 3-29; IPCC 2014, pp. 1–32). Results of scientific analyses presented by the IPCC show that most of the observed increase in global average temperature since the mid-20th century cannot be explained by natural variability in climate and is “very likely” (defined by the IPCC as 90 percent or higher probability) due to the observed increase in greenhouse gas (GHG) concentrations in the atmosphere as a result of human activities, particularly carbon dioxide emissions from use of fossil fuels (Solomon et al. 2007, pp. 21–35; IPCC 2013b, pp. 11–12 and figures SPM.4 and SPM.5). Further confirmation of the role of GHGs comes from Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 33 analyses by Huber and Knutti (2011, p. 4), who concluded it is extremely likely that approximately 75 percent of global warming since 1950 has been caused by human activities. Scientists use a variety of climate models, which include consideration of natural processes and variability, as well as various scenarios of potential levels and timing of GHG emissions, to evaluate the causes of changes already observed and to project future changes in temperature and other climate conditions (Meehl et al. 2007, entire; Ganguly et al. 2009, pp. 11555, 15558; Prinn et al. 2011, pp. 527, 529). All combinations of models and emissions scenarios yield very similar projections of increases in the most common measure of climate change, average global surface temperature (commonly known as global warming), until about 2030. Although projections of the magnitude and rate of warming differ after about 2030, the overall trajectory of all the projections is one of increasing global warming through the end of this century, even for the projections based on scenarios that assume that GHG emissions will stabilize or decline. Thus, there is strong scientific support for projections that warming will continue through the 21st century, and that the magnitude and rate of change will be influenced substantially by the extent of GHG emissions (Meehl et al. 2007, pp. 760–764, 797–811; Ganguly et al. 2009, pp. 15555– 15558; Prinn et al. 2011, pp. 527, 529; IPCC 2013b, pp. 19–23). See IPCC 2013b (entire), for a summary of other global projections of climate-related changes, such as frequency of heat waves and changes in precipitation. Various changes in climate may have direct or indirect effects on species. These effects may be positive, neutral, or negative, and they may change over time, depending on the species and other relevant considerations, such as threats in combination and interactions of climate with other variables (for example, habitat fragmentation) (IPCC 2014, pp. 4–11). Identifying likely effects often involves aspects of climate change vulnerability analysis. Vulnerability refers to the degree to which a species (or system) is susceptible to, and unable to cope with, adverse effects of climate change, including climate variability and extremes. Vulnerability is a function of the type, magnitude, and rate of climate change and variation to which a species is exposed, its sensitivity, and its adaptive capacity (Glick et al. 2011, pp. 19–22; IPCC 2014, p. 5). There is no single method for conducting such analyses that applies to all situations (Glick et al. 2011, p. 3). We use our expert judgment and appropriate analytical approaches to weigh relevant information, including uncertainty, in our consideration of the best scientific information available regarding various aspects of climate change. Global climate projections are informative, and, in some cases, the only or the best scientific information available for us to use. However, projected changes in climate and related impacts can vary across and within different regions of the world (IPCC 2013b, pp. 15–16). Therefore, we use “downscaled” projections when they are available and have been developed through appropriate scientific procedures, because such projections provide higher resolution information that is more relevant to spatial scales used for analyses of a given species (see Glick et al. 2011, pp. 58–61, for a discussion of downscaling). We reviewed projections from Cal-Adapt, a web-based, climate adaptation planning tool provided by the California Energy Commission, which synthesizes existing downscaled climate Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 34 change scenarios and climate impact research, and presents the predictions in an interactive, graphical layout. Projections of changes in annual averages in temperature for the area of the proposed Project in the San Bernardino Basin (Inland Empire) and western foothills of the San Bernardino Mountain Range (City Creek and other potential reintroduction creeks for SAS in the Santa Ana River watershed) using the Cal-Adapt Climate tool indicate an increase in temperature. For the Inland Empire area to the western foothills of the San Bernardino Mountain Range it ranged from about 3.7–4.0 °F (2.1–2.3 °C) under the IPCC low emissions scenario (B1), to an increase in temperature ranging from 6.4–7.1 °F (3.6–4.0 °C) under the IPCC higher emissions scenario (A2) (CEC 2017). Both the B1 and A2 scenarios represent comparisons between the baseline period (1961–1990) and the end-of-century period (2070–2090). In summary, the best available data indicate that climate change effects will add to the destruction and modification of habitat for the species addressed in this biological opinion, both currently and in the future. Although, we are unable to assess in specific quantitative terms the magnitude of the impact due to the uncertainty relative to climate change effects that will occur, the best available data indicate long-term climate change effects will continue to have an overall negative effect on the available habitat throughout the range of these species. Species specific discussions may be found in the Species by Species Evaluations and Conclusions, Threats to the Species in the Vicinity of the Action Area. Species by Species evaluation and conclusions Effects of the action refer to the direct and indirect effects of an action on the species, together with the effects of other activities that are interrelated and interdependent with that action, which will be added to the environmental baseline. Interrelated actions are those that are part of a larger action and depend on the larger action for their justification. Interdependent actions are those that have no independent utility apart from the action under consideration. Indirect effects are those that are caused by the proposed action, are later in time, and still reasonably certain to occur. San Bernardino Kangaroo Rat Status of the Species in the Action Area A habitat assessment of the Project area (i.e., City Creek and Redlands Basins) was conducted by an SBKR biologist. A number of areas were determined to be suitable habitat. Trapping surveys were conducted in 2015 to determine presence/absence along City Creek (ESA 2015b). Subsequent to the habitat assessment, a visit was made to further characterize the amount and extent of SBKR habitat that would be affected by the Project in and around the Redlands Basins. During this visit it was agreed, that due to the combined presence of suitable alluvial soils (PCE 1), poor habitat conditions (e.g., abundant non-native grasses and disturbed soils), a positive historic record, and close proximity of the Redlands Basins to occupied habitat in the Santa Ana River all areas where ground disturbance is proposed to occur could be assumed to be occupied by SBKR at low density. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 35 Based on a review of SBKR occurrence data, the habitat assessment, vegetation maps (BA), and aerial photographs, we estimate that SBKR inhabit City Creek and Redlands Basins area in densities ranging from unoccupied to low and that the acreage of each category is: low density, 4.6 acres, and unoccupied, 4.3 acres. McKernan (1997) categorized the relative abundance of SBKR in different habitat types as low (1 to 5 SBKR per hectare), moderate (5 to 15 SBKR per hectare), or high (20 to 30 SBKR per hectare), and attributed these differences in SBKR abundance to differences in vegetation cover and type, and to proportional variations in sand, gravel, and cobble substrate components. Using McKernan’s relative abundance estimates, we expect no SBKR will be affected by the construction of the outlet structure at City Creek (0.2 acres footprint), up to 3 SBKR may be affected by the construction of the outlet structure at the Redlands Basins (0.5 acres), and a range between 5 and 21 SBKR may be affected by the discharge of up to 10 MGD of effluent into City Creek. The potential exists for the thalweg of City Creek to become rewetted after a period of dry down. This action may harm additional SBKR not represented above. No past data exists to estimate future take for these actions but it is assumed that the conversion from scalebroom scrub to riparian habitat within the thalweg of City Creek reduces potential for reoccupation during dry periods (no discharge and no natural flow). Dry periods will allow for SBKR occupying City Creek outside of the thalweg to disperse across the channel as well as providing temporary forage habitat. SBKR reoccupying this area will be subject to harm from natural storm flows. We have analyzed the conversion of 8.2 acres of SBKR habitat in City Creek as a permanent impact to the species. Habitat Characteristics in the Action Area The alluvial fan of City Creek is the result of periodic deposition by flood events. The soil is composed of boulders, cobbles, sands, and fine silts, which are washed down from higher elevations in the San Bernardino Mountain Range and deposited in the alluvial fan and floodplain. Scalebroom scrub on the alluvial fan develops into pioneer, intermediate, and mature phases, depending on the magnitude and frequency of hydrologic events. In a natural system, floodwaters periodically break from the main flood channel, forming a complex pattern of braided channels and subsequently create a mosaic of vegetation phases within the floodplain. The natural processes which maintain these communities have been substantially altered due to the presence of flood control levees, infrastructural berms (pipeline protection), roads and freeways, and aggregate mines. However, fluvial processes in the City Creek continue to maintain SBKR habitat, although in a much more limited area than was present historically. The portion of the Project containing SBKR and its critical habitat in City Creek is between the Boulder Avenue and Alabama Street bridges. The creek is narrowly constrained by mountainous terrain in its upper watershed. When it reaches the base of the mountains, at Highland Avenue Bridge, it is further constrained between earthen levees that widen moving downstream and allow for limited braiding. The creek historically formed an alluvial fan in excess of 1 mile wide before reaching the Santa Ana River. Today, much of the alluvial fan has been developed. Most of the remaining SBKR habitat is located just outside of the active channel or on small upper Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 36 terraces, from where the stream channel leaves the constrained mountainous terrain (near Highland Avenue Bridge) downstream approximately 3.5 miles to the confluence of the Santa Ana River. The vegetation in and around the City Creek action area consists of a mixture of annual grassland and all successional stages of scalebroom scrub (i.e., pioneer, intermediate, and mature). The soils within the City Creek outlet structure are soil types indicative of alluvium deposits (Soboba Stony Loamy Sand, Soboba Gravelly Loamy Sand, and Tujunga Gravelly Loamy Sand) which are suitable for use by SBKR. SBKR are usually associated with scalebroom scrub, with the highest densities of animals typically found in the intermediate growth stage and generally low densities found in mature scalebroom scrub. However, SBKR use of mature scalebroom scrub is disproportionately important because higher terraces where mature scrub is occurs, serve as refugia during periods of heavy flooding, and thus a source of animals to repopulate previously flooded areas once the vegetation becomes re-established. Threats to the Species in the Action Area The proposed Project will affect SBKR in City Creek, a sub area within the Santa Ana River population. Flood control levees have altered flows and narrowed the active channel and floodplains of City Creek. This has resulted in a reduction in channel braiding and an increase channel erosion, incising, and proportion of mature scalebroom scrub within the species’ distribution in City Creek. Steep embankments, rip-rap levees, drop structures, and bridge constrictions limit or preclude SBKR movement to upland areas. Vegetation senescence and changes in substrate composition in the absence of major flood events are a primary cause of habitat degradation (Burk et al. 2007, McKernan 1997). Additionally, within-channel flood control berms and infrastructural protection (boulder piles) preclude movement of SBKR within portions of City Creek and may have effectively fragmented the area into isolated pockets of habitat. Some of the undeveloped land in and around the action area is dominated by nonnative annual grasses and other ruderal plant species. The spread of nonnative grasses and the reduction or elimination of natural drainage patterns has caused the areas adjacent to the active channel to become increasingly unsuitable for SBKR use and occupation over time (USFWS 2009). Residential, commercial, and industrial development; aggregate mining, and clearing of native vegetation from undeveloped sites have gradually eliminated large areas of upland refugia habitat (i.e., mature scalebroom scrub) outside of the active floodplains. Upland areas adjacent to suitable habitat serve as refugia from lower portions of the floodplain during large storm flows. Protection of upland refugia habitat is important to the long-term survival of SBKR populations as animals occupying the uplands following a flood event provide source populations for recolonization of the lower floodplain after the flooding has subsided (USFWS 2002a). Conservation Needs in the Action Area Conservation and recovery of SBKR within the vicinity of the action area will depend upon the same sort of actions required to conserve and recover the subspecies within its extant range Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 37 (USFWS 2002a). Long-term conservation of SBKR within the City Creek area will require maintenance of existing fluvial dynamics and habitat connectivity, as well as protection of upland terrace habitat to provide refugia for SBKR in the event of catastrophic flooding. No current or anticipated regional planning effort is underway or proposed to address the multiple threats to SBKR or its habitat in the vicinity of the action area. One conservation area has been established within the larger Santa Ana River population. The Woolly-Star Preserve Area is 804 acres in size, located between the mainstem of the Santa Ana River and City Creek and was established to offset impacts, reduced flooding potential, from the creation of Seven Oaks Dam. The Wash Plan is a habitat conservation plan that is nearing completion. It proposes to conserve more of the surrounding lands around the Woolly-Star Preserve Area and in the Plunge Creek watershed (tributary to the Santa Ana River) for SBKR, woolly-star, gnatcatcher, and other trust species to offset impacts from mining and water conservation (creation of new groundwater basins). Ameliorating threats such as channel incising, non-native species, and connectivity with refugia habitats would benefit conservation of SBKR in the area. Preservation of alluvial processes, habitat restoration, protection, and management of additional areas throughout its range would also help conserve this animal. Status of Critical Habitat in the Action Area The SBKR habitat affected by the Project is in critical habitat Unit 1, which includes the largest remaining distribution of SBKR and supports one of three major populations of SBKR. Unit 1 encompasses approximately 13,970 acres of floodplain, upland alluvial terrace habitat and upstream areas that are essential for maintenance of fluvial processes within and between the Santa Ana River and its major tributaries; City Creek, Plunge Creek, and Mill Creek. The unit contains all of the features (PCEs) essential to SBKR life history. This unit contains habitat along all of the Santa Ana River tributaries from the point that the drainages emanate from canyons within San Bernardino National Forest (SBNF) to where the Santa Ana River is maintained as a flood control channel downstream in San Bernardino (USFWS 2002a). Numerous flood control levees and groins have altered the flow patterns and narrowed the active floodplain, which has increased the proportion of open channel and mature scalebroom scrub and decreased the area of intermediate scalebroom scrub that is preferred by SBKR. Existing and proposed out-of-stream aggregate mining operations, water conservation basins, dikes, and conveyance channels, and other development have eliminated or degraded SBKR habitat and reduced population connectivity within the upper Santa Ana River floodplain. Flood control structures and urban development have degraded or eliminated much of the upland refugia habitat in Unit 1. Conservation of SBKR within Unit 1, including the portion of the population in the Project action area, will require maintenance of hydrologic processes that support the habitat structure required by SBKR including the development of relatively open intermediate scalebroom scrub. This habitat is typically found on benches between the active channel and mature floodplain terraces and is created by periodic flood waters breaking out of Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 38 the main channel in a complex pattern. Conservation of SBKR in Unit 1 will also require preservation and creation of upland refugia habitat (habitat above the 100-year floodplain) to ensure that animals are available to repopulate areas scoured out during heaving storms. There is a habitat conservation planning effort that is near completion which would provide conservation and management of SBKR habitat in the Santa Ana River wash area at the confluence of the Santa Ana River, and Mill, Plunge, and Elder Creeks. Existing conservation efforts within Unit 1 are described in Conservation Needs in the Vicinity of the Action Area section above. Past Consultations in the Action Area The USFWS has issued the following biological opinions for actions that have occurred within the action area for this consultation. In all cases, the USFWS determined that the proposed action was not likely to jeopardize the continued existence of SBKR or destroy or adversely modify its critical habitat. 5th Street Bridge Widening The USFWS issued a biological opinion on June 13, 2001, (FWS-SB-1162.4) to the Federal Highway Administration for the improvement of 5th Street which crosses City Creek. The action area contained SBKR habitat. Approximately 4.43 acres of occupied SBKR habitat were identified in the Project footprint, all of which was within designated critical habitat for the species. Take was exempted for all SBKR that could be killed or injured as a result of the Project. To offset permanent (0.43 acres) and temporary (4 acres) impacts to SBKR habitat, the City of Highland agreed to purchase 10 acres of conservation credits at the Cajon Creek Conservation Bank for SBKR. Reinitiation for Improvement to State Route 210 (Formerly State Route 30) The USFWS issued a revision to the original 1994 biological opinion (FWS-1-6-93-F-49) on July 20, 2004, (FWS-SB-3915.2) to the Federal Highway Administration for improvements to State Route 210, a portion of which crosses City Creek. The action area contained SBKR habitat at multiple locations. Approximately 29.2 acres of occupied SBKR habitat were identified in the Project footprint, all of which was within designated critical habitat for the species. Take was exempted for all SBKR that could be killed or injured as a result of the Project. To offset permanent (18.6 acres) and temporary (10.6 acres) impacts to SBKR habitat, the California Department of Transportation (CalTrans) agreed to purchase 112 acres of conservation credits at the Cajon Creek Conservation Bank for SBKR. Boulder Street Bridge Widening The USFWS issued a biological opinion on January 21, 2010, (FWS-SB-08B0342-09F0799) to CalTrans who assumed Federal Highway Administration’s responsibilities as the non-Federal Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 39 designee for this consultation for the purpose improvements to Boulder Avenue which crosses City Creek. The action area contained SBKR habitat. Approximately 4.5 acres of occupied SBKR habitat and 4 acres of unoccupied habitat were identified in the Project footprint. The Project footprint included 4 acres within designated critical habitat for the species. Take was exempted for up to 9 SBKR that could be harmed, killed, or injured as a result of the Project. To offset permanent (1.23 acres) and temporary (4 acres) impacts to SBKR habitat, the City of Highland agreed to non-native grass removal in 6 acres of adjacent alluvial fan terrace habitat owned by San Bernardino County Flood Control District and purchase 6 acres of conservation credits at the Cajon Creek Conservation Bank for SBKR. In sum the biological opinions listed above have authorized a relativel y small amount of take within the areas that they cover. Implementation of conservation measures similar to those included in this biological opinion minimizes the associated adverse effects and impacts of the taking of SBKR and impacts to critical habitat. Because the action areas defined for these projects narrowly intersect that which is analyzed for the Project in this biological opinion, only a relatively small portion of the total take associated with these projects would coincide geographically with the Project. Santa Ana sucker Status of the species in the Action Area The last record of SAS in City Creek is from 1982 (CDFW 2017). This species is believed to be extirpated from all upper Santa Ana River tributaries. Rialto Channel and Santa Ana River below their confluence provide much of the remaining SAS breeding and foraging habitat in the watershed. Upstream of the Rialto Channel, the Santa Ana River is a dry wash for several miles except during, and immediately following, storm events. The existing discharge from the RIX facility currently provides habitat (perennial stream) and is contributing to the maintenance of suitable habitat spawning and foraging habitat (USFWS 2010b). SAS are commonly found from Rialto Channel downstream to Mission Boulevard. After Mission Boulevard, the species becomes progressively scarcer with fish rarely observed downstream near Prado Basin. Despite numerous survey efforts only a few SAS have been found below Prado Dam since 2001 (USFWS 2014b). We have no information to indicate that spawning is occurring below Prado Dam. In 2015 and 2016 the USGS conducted a Native Fishes Survey of the Santa Ana River, focusing on the upper 4 miles of the perennial stream (Brown and May 2016, 2017). These surveys provide population estimates of SAS from Rialto Channel downstream, to near Mission Boulevard. In 2015 the reach of the river from the RIX outflow to Riverside Avenue contained the largest population of SAS within the entire watershed. Over 90 percent of the 6,802 fish estimated in that survey were found in one riffle/pool complex located approximately one mile downstream from the RIX outfall. In 2016 SAS were found to be more abundant (8,971 SAS) and spread more evenly across the available habitat with 42 percent located upstream and 58 percent found downstream of Riverside Avenue. The area and distribution of SAS habitat increased from 2015 and 2016 to levels never before recorded during the Riverwalk survey Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 40 (USFWS 2017). This was in part due to the record low rainfall the region experienced in 2016, where no surface flow (storm flow) from upstream of Rialto Channel occurred between mid- January and the Riverwalk survey in October (Brown and May 2017). The absence of new sediment deposition during storm flows, and steady clear-water discharge from two wastewater treatment plants (Rialto and RIX facility) transported a majority of the fine sediment to below Mission Boulevard, exposing over 8.2 miles of fairly continuous gravel beds (USFWS 2017). The 2015 Native Fishes Survey also found SAS commonly utilizing depths between approximately 1.1 and 2 feet (35 and 60 centimeters) and most fish were found in mean water column velocities between approximately 1.6 and 3.3 feet per second (0.5 and 1 meters per second), with minimum and maximum fish usage measured between 1 and 4 feet (30 and 120 centimeters) in depth and 0.66 and 5.2 feet per second (0.2 and 1.6 meters per second) flow velocity (Brown and May 2016). Current conditions indicate the species is generally limited by a low abundance of patchily distributed appropriate microhabitat (gravel/cobble substrate). Microhabitats with deeper areas of scour and associated structure (vegetation, woody debris, or boulder) tended to be more densely populated than other sections of stream (Brown and May 2016). Threats to the Species in the Action Area Downstream of the RIX outlet, threats include, introduction of nonnative competitors and aquatic predators, human-induced changes in stream-flow (periodic dewatering), OHV traffic, homeless encampments (associated water quality impacts and fishing), elevated water temperatures associated with diminished flows and effluent discharge, and demographic risks associated with small population size (USFWS 2014b). A majority of the existing surface flow in the Santa Ana River is derived from wastewater sources. A significant threat to the Santa Ana River population of SAS is poor water quality, including perennially warm surface flow. The artificially warm aquatic environment has led to the naturalization of several warm water aquatic predators and one highly invasive algal species. Drought conditions and reduction in surface flows due to water capture for ground water recharge and extraction for human use have reduced the duration and amount of surface flows in the upper portion of the river. Recent observations of fish deaths in the Santa Ana River have been attributed to dry down of the river when effluent from the RIX facility shuts off for facility maintenance or other reasons. The RIX facility, from January 2014 to November 2016, had 69 incidences of plant shutdowns, 35 of which lasted over an hour (RWQCB 2016). The river was monitored during 5 planned shutdowns associated with facility maintenance, between January 2015 and November 2016. During river monitoring most SAS (2,287 fish, 95 percent) were salvaged and returned to the river alive. The lack of surface water in the river and its vulnerability to dry down in the reach upstream of Riverside Avenue is currently the most critical threat to the species in the action area. The increase in SAS numbers from 2015 to 2016 was in part due to increased habitat availability but also due to fish salvage work that minimized the effect river dry downs on SAS. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 41 Conservation Needs in the Vicinity of the Action Area The Draft Recovery Plan for SAS (USFWS 2014b) identified the following objectives in the recovery strategy for the species, all of which are applicable the Santa Ana River population of SAS. Work with landowners and other stakeholders to: (1) Develop and implement a rangewide monitoring protocol to accurately and consistently document populations, occupied habitat, and threats, (2) Conduct research projects specifically designed to inform management actions and recovery, (3) Increase the abundance and develop a more even distribution of SAS within its current range by reducing threats to the species and its habitat, (4) Expand the range of SAS by restoring habitat (if needed), and reestablishing occurrences within its historical range. Reducing threats from poor water quality, reduced natural and effluent flow, and extreme fluctuations in water supply will improve the status of SAS in the Santa Ana River. The City of San Bernardino is working to reduce impacts from the dry down of portions of the Santa Ana River during RIX facility shutdowns. In January 2015 the City started providing funding to the Riverside-Corona Resource Conservation District (RCRCD) for the monitoring and salvage of native fishes, including SAS, during planned shutdowns. It is also completing a planned upgrade to its ultraviolet lighting system. This is expected to significantly reduce the number of unplanned shutdowns. The City is also constructing and/or retrofitting four groundwater wells adjacent the RIX facility to supply water to the river during future shutdown events to prevent or ameliorate the risk of dry down. Wells are planned to be completed by July 2017 (RWQCB 2016). With these measures in place the population of SAS in the action area is expected to continue to expand as this threat is reduced. Valley District has funded the writing of the Draft Translocation Plan for Santa Ana Sucker (Dudek 2016a), as well as initiated surveys to assess stream habitat for SAS in four historic tributaries in the Santa Ana River watershed noted in the draft recovery plan for the species (USFWS 2014b) as part of the HCP. The Draft Translocation Plan is currently being reviewed by the USFWS and CDFW, National Environmental Policy Act (NEPA) review and documentation has been initiated, and coordination with the USFS is ongoing. All required approvals will be obtained prior to conducting any translocation/relocation of SAS into portions of its historic range. In 2016, Valley District provided funding to the RCRCD for the construction and operation of two large (approximately 20 feet wide by 300 feet long) artificial streams that will be used for captive propagation of SAS for purposes of relocation into the historic tributaries. The RCRCD estimates each artificial stream will be able to sustain approximately 1,000 SAS of multiple age classes. The RCRCD has submitted a Draft Captive Breeding Plan (Dudek 2016a) to the USFWS for review and approval. Status of Critical Habitat in the Action Area The Santa Ana River unit is the largest of the three SAS critical habitat units, 7,097 acres. A majority of this area was designated in support of sediment transport to downstream occupied Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 42 reaches of the river. The action area includes a large portion of this unit, from upstream of Prado Basin to Rialto Channel along the mainstem of the river and in the mountain and lowland portions of City Creek. The species is currently only occupies the critical habitat in the low-flow mainstem river and its tributaries within and downstream of the unlined portion of Rialto Channel. The area occupied by the species within Santa Ana River critical habitat unit is a very small portion of the total designated critical habitat area. Anything that degrades the function of critical habitat in the occupied reaches of the river is of significant concern. The proposed Project is located in Subunits 1A and 1B (Upper Santa Ana River and Santa Ana River, respectively) of designated SAS critical habitat. This area extends approximately 34 miles from Prado Dam upstream to the West Fork of City Creek (USFWS 2010b). Together these subunits constitute approximately 89 percent of designated critical habitat in Unit 1. The final rule recognizes that Subunit 1A provides stream and storm waters necessary to transport essential coarse sediments to maintain preferred substrate conditions in occupied portions in the Santa Ana River (PCEs 1 and 2), whereas Subunit 1B includes the majority of the currently occupied range of the species in Unit 1 and contains all SAS PCEs. Special management considerations or protection may be required in Subunit 1B to address habitat degradation associated with water diversion, dams, water quality impacts from non-point source and point source pollution (including untreated urban run-off and discharge of treated wastewater), and altered hydrology throughout the watershed (including alterations from instream barriers, construction of bridges, channelization, and other flood control structures) (USFWS 2010b). The majority of Subunits 1A and 1B are located within the action area and will benefit from management actions that will be implemented by the USEPA and Valley District as part of the Project to ensure the baseline acreage of SAS suitable aquatic habitat is maintained within the mainstem portion of the action area and through reintroduction of SAS to portions of its historic range, including City Creek. Past Consultations in the Action Area Prado Mainstem and Santa Ana River Reach 9 Flood Control Projects and Norco Bluffs Stabilization Project The Santa Ana River Mainstem Project includes modifications to the Santa Ana River and its tributaries in San Bernardino, Riverside, and Orange counties. We issued the first biological opinion on the project in 1980 (1-1-80-F-75). There have been multiple amendments since then. On December 5, 2001, we issued a revision (FWS-SB-909.6) to the USACE for the purposes of construction of flood control projects in the Santa Ana River watershed. This revision analyzed potential effects to SAS not included in the original consultation. At the time this consultation occurred no critical habitat had been designated for SAS. Multiple components of the larger project including the Norco Bluffs stabilization, River Road floodwall, and River Road dike are within the SNRC Project action area. Permanent impacts from the flood control projects included loss of 52.5 acres of riparian habitat and 9 acres of aquatic habitat, and temporary impacts to 4.2 acres of aquatic habitat, most of which was located downstream of the action area. It was estimated that 45 SAS would be incidentally taken, in addition to 10 or more SAS taken per each Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 43 trap haul, when fish were captured and relocated out of work areas. Most measures to offset project impacts were placed downstream of Prado Dam. Near the action area in Prado Basin just downstream of River Road, the USACE agreed to create a bi-directional fish passage through an existing dike in the river. Emergency River Road Sand Mining Operation and amendment We issued biological opinions FWS-SB-2371.2 and FWS-SB-2371.4 on April 30, 2002, and May 15, 2002, respectively, to the USACE for the purposes of River Road Bridge sand mining operations. The Section 7 consultation and later amendment analyzed the temporary loss of 22.5 acres of habitat in the river and 4.8 acres of temporary disturbance along the river bank. At the time this consultation occurred no critical habitat had been designated for SAS. Incidental take of SAS was assessed to be 20 fish captured per relocation event in the original consultation and was increased to 315 fish to account for take associated the construction of Basin 1. In order to offset project impacts to SAS, Riverside County Transportation Department was required to participate in the sucker program and sand berm construction was limited to between September 15 and April 30. Study Examining Effects of Shutdowns at RIX Facility The USFWS issued an intra-USFWS biological opinion (FWS-SB-3057.1) on August 23, 2002, for the purposes of conducting a study to determine the effects of wastewater discharge stoppage from the RIX facility on SAS. This study was designed to monitor and evaluate changes to the amount of effected wetted habitat, change in water temperature, effect to pools, and potential for stranding. Temporal loss/degradation of critical habitat was anticipated from the RIX outlet to Riverside Avenue Bridge with an unquantifiable number of SAS affected. SAS were not observed to be injured or killed during the study. Western Riverside Multiple Species Habitat Management Plan The USFWS issued an intra-USFWS biological opinion (FWS-WRIV-0870.19) on June 22, 2004, for a regional habitat conservation plan (MSHCP) that covered 146 species, including SAS, within the western portion of Riverside County. The MSHCP covers a wide range of public and private land uses. Up to 443 acres of modeled SAS habitat were anticipated to become unsuitable as a result of the MSHCP. At the time this consultation occurred no critical habitat had been designated for SAS. A small, but undeterminable, number of SAS were anticipated to be incidentally harmed as a result of long-term management and monitoring activities. To minimize and mitigate MSHCP impacts to SAS and other covered species, the 22 permittees conserved 3,480 acres of suitable SAS habitat within the plan boundary and provided long-term management and monitoring. Long-term management and monitoring were to be conducted by reserve managers who would assess and restore connectivity when potential barriers to SAS movement are found, restore habitat, improve water quality, protect critical areas to SAS life history needs, remove non-native aquatic predators, and remove vegetation within the plan area. We issued an amendment FWS-WRIV-11IB0266-11F0413 on September 22, 2011 which Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 44 addressed the effects of the MSHCP on designated SAS critical habitat. We determined that the MSHCP would not adversely modify SAS critical habitat. River Road Bridge Replacement The USFWS issued a biological opinion (FWS-WRIV-2669.2) on March 11, 2005, to the Federal Highway Administration for the purposes of replacing River Road Bridge. The River Road Bridge was widened and lengthened to minimize the potential for flood-related damage. Riparian habitat was temporarily disturbed (0.99 acres) and SAS designated critical habitat was permanent impacted (1.83 acres). In order to offset project impacts to SAS Riverside County Transportation Department agreed to conserve 8.17 acres of riparian habitat in the Santa Ana River watershed. Van Buren Bridge Replacement Project The USFWS issued a biological opinion (FWS-WRIV-3035.3) on May 5, 2005, to the Federal Highway Administration for the purposes of replacing Van Buren Bridge. The Van Buren Bridge was widened and realigned to minimize the potential for flood-related damage. Riparian habitat was temporarily disturbed (5.5 acres) and SAS designated critical habitat was permanent impacted (0.5 acres). This project was consistent with the MSHCP and all take of SAS and impacts to riparian habitat was accounted for in that consultation. Forest Service Land Management Plans The USFWS issued a biological opinion (FWS-SB-773.9) on September 15, 2005, to the USFS or the purposes of revising land and resource management plans within four Southern California National Forests. This Section 7 consultation covered all of the proposed actions that forest plans to implement and their potential affects to listed species. All potential impacts to SAS critical habitat (City Creek) were minimized. The species does not currently occur within the San Bernardino National Forest so no incidental take of the species was anticipated. Reintroduction of the species to City Creek and one other Forest tributary is expected to occur. Forest management, culverts, in-stream road crossing, etc. are not expected to significantly affect the establishment and success of SAS to streams in the San Bernardino National Forest. Reinitiation of River Road Bridge Sediment Removal Project The USFWS issued a revision to the original April 30, 2002 biological opinion (FWS-SB- 2371.2) in 2010, (FWS-09B0283-10F0846) to the USACE for the purposes of continuing sand mining operations. Due to project delays in the construction timeframe, new unanticipated effects to SAS, and the designation of critical habitat in the interim, there was a need to reinitiate consultation. Dewatering of a 33-acre area of aquatic habitat was anticipated in order to conduct sediment removal activities. Incidental take, in the form of harm or harassment, was issued for up to 70 SAS for the capture and relocation to outside of the work area. In order to offset project Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 45 impacts to SAS Riverside County Transportation Department agreed to supply cool groundwater to the river below the work area in addition to measures included in the previous consultations. Seven Oaks Dam Gate Testing Project The USFWS issued a biological opinion (FWS-SB/WRIV-08B0408-10F0825) on July 12, 2010, to the USACE for the purposes of testing the flood gates at Seven Oaks Dam. The Gate testing is a component of the Santa Ana River Mainstem Project. It was anticipated that by testing the dam gates the associated high flow event would achieve a 2,500 cubic feet per second (cfs) discharge rate at the dam. Flows were predicted to be up to 750 cfs at Rialto Channel. Take was authorized for the stranding of up to 20 SAS over 3 days of gate testing. No conservation was included in this consultation. Reinitiation of Prado Mainstem and Santa Ana River Reach 9 Flood Protection and Norco Bluffs Stabilization Project The USFWS issued this revision on March 28, 2012, (FWS-SB/WRIV/OR-08B0408-11F0551) to the USACE for the purposes of construction of flood control projects in the Santa Ana River watershed. This revision analyzed potential effects to SAS not included in the original consultation including effect to SAS critical habitat that was designated in 2010. Conservation measures were amended to increase their conservation values for SAS, as well as riparian habitat in general. Two of the measures included a Trust Fund of $1,000,000 to manage previously restored habitat in the Santa Ana River watershed free of giant reed for the life of the project and create 10.9 acres of aquatic habitat for SAS below Prado Dam. Santa Ana River Bridge Seismic Retrofit and Routine Maintenance Project The USFWS issued a biological opinion on February 17, 2015, (FWS-WRIV-15B0116-15F0180) to the USACE for the seismic retrofit of the Santa Ana River Bridge that supports the Metropolitan Water District Upper Feeder pipeline. Temporary impacts to 0.07 acres of in-stream habitat was authorized. In order to offset project impacts to SAS, Metropolitan Water District agreed restore and maintain 1.22 acres of native riparian habitat in the Santa Ana River watershed. Reinitiation of Santa Ana River Mainstem Project The USFWS issued a revision on July 23, 2015, (FWS-OR-08B0408-15F0592) to the USACE for the purposes of adding bank and bridge protection to portions of the Santa Ana River downstream of Prado Dam. These protections were needed to prevent undercutting or erosion of Santa Ana River embankments and railroad bridge piers during up to 30,000 cfs discharge from Prado Dam. All impacts to stream habitat are located outside of the SNRC action area. The USACE agreed to place offsetting compensatory measures for the temporary impact of 1.22 acres of perennial stream habitat upstream within the SNRC action area. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 46 Temporary enhancement of perennial stream habitat of at least 2.54 acres was required and has yet to be constructed. The USACE and Valley District anticipate both restoration/enhancement projects will occur at approximately the same time resulting in the cumulative enhancement of at least 4.04 acres of perennial stream habitat. In addition, the USACE is required to either reintroduce SAS to a suitable unoccupied habitat within its historic range in the Santa Ana River watershed or enhance 2 acres of SAS habitat below Prado Dam through gravel/cobble augmentation of the substrate. In discussion with the USACE, they are pursuing the reintroduction alternative along with SNRC and the HCP. If the reintroduction option is pursued, this will bring the cumulative number of SAS-occupied streams to four in the Santa Ana River watershed, (including the two proposed by SNRC). Programmatic Consultation on SAS Recovery Permits The USFWS issued an intra-USFWS programmatic consultation (USFWS 2015a) on December 22, 2015 to analyze various recovery actions for SAS across its range and set limits on incidental take associated with specific recovery actions. In this case take was considered mortally wounding an individual. 1. Survey, capture, and handling activities throughout species’ range – up to 30 adults and 60 juveniles per year; 2. Electrofishing – up to 1 percent per year; 3. Voucher specimens – up to 5 individuals per new or rediscovered populations; 4. Translocations – up to 25 percent of a population within a given pool/sampling area or up to 400 individuals per year per watershed; 5. Removal from the wild and release of captive SAS – up to 10 percent of the individual SAS observed per year per watershed and up to 100 juveniles per watershed and 50 adults per watershed overall; and/or 6. Removal for recovery and/or research purposes to salvage individuals from drying habitat or other natural threats that subject them to imminent mortality – no limit. EFFECTS OF THE ACTION Effects of the action refer to the direct and indirect effects of an action on the species, together with the effects of other activities that are interrelated and interdependent with that action, which will be added to the environmental baseline. Interrelated actions are those that are part of a larger action and depend on the larger action for their justification. Interdependent actions are those that have no independent utility apart from the action under consideration. Indirect effects are those that are caused by the proposed action, are later in time, and still reasonably certain to occur. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 47 San Bernardino Kangaroo Rat Direct Effects Habitat Destruction Project construction activities will permanently impact approximately 0.04 acres (combined footprint of outlet structure and energy dissipater at both City Creek and Redlands Basins) and temporarily impact 0.66 acres of SBKR habitat at the outlet structures and at the Redlands Basins (Table 1, see below). These impacts will be offset by the conservation and management of 1.24 acres of SBKR habitat. CMs have been included to restore and revegetate habitat disturbed by construction activities which should minimize the duration of habitat loss. It is expected that appropriate SBKR habitat (same or better quality as pre-Project condition) will be reestablished within 3 years and at most 5 years from the start of the Project. Death/Injury Any SBKR within ground disturbance areas of the Project, 0.7 acres of initial construction, may be crushed or buried within their burrows as a result of Project-related disturbance. To minimize the number of SBKR injured or killed by construction activities, the contractor will install exclusionary fencing to prevent SBKR from entering any construction areas adjacent to occupied habitat. Any SBKR found during fence installation, and subsequently found within the fenced area throughout the course of construction activities, will be captured and released in nearby suitable habitat by an approved biologist. Trenching completed to install the exclusionary fence may directly injure and/or kill SBKR through crushing of the burrows by movement of personnel, vehicles, and equipment. Indirect injury and death may result from the effects of trapping and relocation to maintain the SBKR-free enclosed action area, as discussed below in the Indirect Effects section below. Despite risks associated with the exclusionary fencing, trapping, and release of SBKR to adjacent habitat, we believe these activities will minimize the number of animals that otherwise would be killed by construction activities. Moreover, though captured SBKR may be injured or killed during live-trapping or relocation, such take rarely occurs during trapping conducted by biologists approved by our agency. We expect that SBKR will be prevented from entering construction areas after initial clearing and grading due to the presence of the exclusionary fence. However, there is some possibility that SBKR may burrow under the fence or enter through a temporary breech in it. To minimize injury to these SBKR, all trenches will be backfilled or covered or temporary escape ramps will be constructed at the end of the work day; any stockpiled soils, if outside the exclusionary fence, will be covered or fenced. An Authorized Biologist or Biological Monitor will inspect these sites daily to locate and make any needed repairs to the exclusionary fence and to remove any stranded SBKR from the construction area and release them into nearby suitable habitat. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 48 Indirect Effects Habitat Degradation/Type Conversion Although the topsoil will be segregated and placed back in the temporary excavation sites, and revegetated in as near to its original condition as possible, the soil profile will be disrupted and this may affect the quality of the habitat and its ability to support SBKR long term. Continuous or semi-continuous discharge of up to 10 MGD of effluent into City Creek will alter the habitat within approximately 8.4 acres of the deepest braid (thalweg) of City Creek from Boulder Avenue to approximately Alabama Street. It is expected that the current habitat (scalebroom scrub) will be converted to riparian habitat (southern willow woodland or equivalent) and cause the permanent loss of one or more biological features necessary for SBKR occupation. A trapping survey conducted in 2016 indicated that approximately half of the length of the affected reach of City Creek (4.1 acres) is occupied by SBKR (ESA 2016d). To offset this impact, 20.5 acres of SBKR habitat will be conserved and managed; loss of occupied designated critical habitat offset at a ratio of 3 to 1 and loss of unoccupied designated critical habitat offset at ratio of 2 to 1 (Table 1). Table 1.Impacts and conservation of scalebroom scrub habitat Project Feature Permanent Effects Temporary Effects Proposed Conservation (acres)occupied unoccupied occupied unoccupied City Creek (outlet Structure) 0 0.02 0 0.18 0.22 City Creek (type conversion) 4.10 4.10 0 0 20.5 Redlands Basins 0.02 0 0.48 0 1.02 Total 4.12 4.12 0.48 0.18 21.74 Trapping and Relocation Adverse impacts to SBKR may result from trap and release activities. After release some animals likely will not survive displacement owing to increased vulnerability to predation, while others will suffer from reduced fitness resulting from competitive exclusion by SBKR or other small mammals already established within the release area. Physiological stress associated with inability to successfully reestablish a new home range for obtaining food and shelter will result in reduced individual fitness, as manifested by reduced survival or reproduction after release. Individual SBKR now inhabiting the adjacent habitat also may suffer from these competition- related stresses, including reduced reproduction, for some time after new animals are released into their territories. The early successional stages vegetation and/or degraded conditions of the habitat in the affected Project area suggests that up to two SBKR would be captured and relocated during construction of the 24-inch pipeline and associated outlet structures, assuming less than a 100 percent capture rate. It is expected that capture and translocation will subject captured SBKR to risk of decreased survival, fitness, and reproduction. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 49 Effect on Recovery While the USFWS has not developed a recovery plan for SBKR, our latest 5-year review for the subspecies recommended that as much remaining habitat as possible be conserved and managed according to (USFWS 2009). The 5-year review also recommends that the USFWS work with partners to identify opportunities for habitat management, restoration, and enhancement, and to protect additional SBKR habitat. Habitat protection must include upland refugia to support SBKR during floods, and occupied floodplains and adjacent upland habitats should be conserved to ensure protection of populations large enough to remain viable in the long term (USFWS 2009). However, owing to the lack of adequate demographic data, we do not know how large a sustainable SBKR population must be or how large a habitat area is needed to support a viable population. Overall, implementation of the proposed action will result in a gain of up to 21.74 acres of permanently conserved and managed habitat for SBKR, which provides a net gain in the long term function of critical habitat containing PCE/PCRs to support the ecological functions needed to support SBKR in this area. The 4.6 acres of occupied and 4.3 acres of unoccupied suitable habitat which will be impacted by Project construction constitutes a small portion of Unit 1. We do not expect the combined permanent loss of 0.04 acres (total footprint of structures), the permanent replacement of scalebroom scrub with riparian habitat (PCE 2) of 8.2 acres, and the temporary loss of 0.66 acres to impede the recovery of SBKR. We expect the conservation and management of 21.74 acres for the benefit of SBKR to contribute to the function of critical habitat in Unit 1 and recovery of the species. Effect on Critical Habitat The Project will result in 8.24 acres of permanent (0.04 acres developed and 8.2 acres converted to riparian woodland) and 0.66 acres of temporary impacts to SBKR critical habitat as a result of Project construction. SBKR occupy 4.6 of those acres. The affected critical habitat supports the appropriate soil types and provides habitat in and adjacent to the 100-year floodplain (PCE/PCRs 1, 2, 3, and 4). To offset the effects of the Project’s impacts on SBKR critical habitat, permanent conservation and management of scalebroom scrub habitat (at least 13.32 acres of which must be occupied) including a conservation easement, the purchase of equivalent credits from a Conservation Bank approved by the USFWS, or another equivalent compensatory mitigation option approved by the PSFWO will occur prior to initiation of Project construction. Conservation of habitat linkages between City Creek and the larger Santa Ana River population and/or connectivity between the lower elevations of the creek and upper terrace refugia habitats should be prioritized. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 50 Santa Ana Sucker Direct Effects Habitat Node Creation Construction is expected to occur in the wetted channel as part of the initial establishment of the habitat nodes (Conservation Measure 17b.i) in the mainstem of the Santa Ana River. Although this action is not anticipated to kill SAS, the clearing of the stream using electrofishing (capture and relocation of SAS to outside the work area) will harm or harass all fish that are found inhabiting construction areas. Due to the initial selection of poor quality habitat (sandy substrate with little habitat complexity) the take of SAS associated with each habitat node is expected to be no more than one fish per node, or six SAS in total. Subsequent work will likely encounter higher numbers of SAS as the intent of the node creation is to increase fish numbers. Habitat node re-establishment or enhancement would only occur if a node failed to perform (amount of habitat enhance was less than 0.25 acres) or the structure of the node was significantly degraded due to storm flows. Assuming a 10-year storm event will degrade or destroy all habitat nodes to a degree that they need replacement and a 5-year storm flow will degrade 50 percent of the nodes to a degree where enhancement is needed, all nodes will need replacing or significant enhancement approximately three times in 20 years. Habitat node enhancement will likely impact a higher number of SAS than node re-establishment since a greater proportion of the node is functional and maintaining SAS habitat at the time of repair. We estimate that up to 100 SAS will be relocated per habitat node during repairs (3 nodes equals 600 SAS) and up to 20 SAS relocated during node replacement (12 nodes equals 240 SAS), or up to 840 SAS relocated in a 20 year period. No more than six SAS are anticipated to be injured or killed per year associated with habitat node construction or future maintenance activities, or up to one fish per node per year. Long-term Monitoring Although the potential for injury or mortally wounding SAS during long-term monitoring in the mainstem of the Santa Ana River or in reintroduced populations is low, it is likely to occur. Recovery permits issued to USFWS permitted SAS biologists allow up to 10 SAS per calendar year to be incidentally injured or killed. We anticipate that a cumulative amount of no more than six SAS will be incidentally injured or killed by electroshocking and handling per calendar year as part of the long-term monitoring for the six habitat nodes and the two reintroduced SAS populations in the Santa Ana River watershed, or two SAS per population. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 51 Indirect Effects Permanent Habitat Loss and Degradation – Reduced Effluent Discharge 1. Reduced Area of Wetted Channel A study was conducted as part of the BA to estimate the changes in depth and velocity that could be expected from a 6 MGD discharge reduction at the RIX outfall. The study concluded that a reduction of 6 MGD of discharge from RIX would reduce the wetted habitat in the Santa Ana River channel by 4 to 7 percent between the RIX outlet and approximately Mission Boulevard Bridge (ESA 2015b). The existing wetted area of this reach is approximately 15.6 acres; therefore, the 4-7 percent reduction in the wetted channel of the Santa Ana River would equate to 0.6 to 1.1 acres of reduced wetted habitat throughout the affected area. The incremental effect of any flow reduction could degrade the already compromised aquatic habitat, and would result in a gradual decline in the ecological function of the riverine system for SAS within this area (i.e., reduced forage and spawning area). The reduction in aquatic habitat would likely adversely affect SAS at all life stages. The reduced discharge study used 6 MGD as the value of flow reduction to the Santa Ana River. To ensure use of the best available information when evaluating the change to the wetted environment, the USFWS requested up-to-date data from Valley District. A representative data set from November 2014 to December 2016 (monthly mean) indicated that EVWD supplied 6.01 MGD as influent to the RIX facility for tertiary processing (Valley District 2017). The RIX facility processed to tertiary standards and discharged a mean effluent flow of 28.88 MGD over the same time period (SWRCB 2017). To ensure that all effluent is removed from the local groundwater, the RIX facility extracts more water than they infiltrate. The rate of over extraction was unaccounted for in the low-flow study, meaning that the effect of the diversion of 6 MGD is loss of more than 6 MGD from the RIX outfall. Reported values of influent and effluent indicate that RIX over extracted by approximately 10 percent during the studied period (SWRCB 2017). A conservative estimate for Project-related discharge reduction at the RIX outfall is approximately 6.43 MGD, or 22.3 percent of current RIX discharge (6.43 of 28.88 MGD). We estimate that the wetted channel between the RIX outlet downstream to Mission Boulevard will be permanently reduced by approximately 1.21 acres, or 8 percent of the current wetted channel, slightly greater than the 0.6 to 1.1 acres estimated in the reduce flow study. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 52 2.Reduced Habitat Quality and Function a.Reduced Depth of Aquatic Habitat The reduced discharge study concluded that a diversion of 6 MGD from the Santa Ana River at the RIX outlet would lower water depth in the channel by approximately 1.1 inches, resulting in more shallow pools (and fewer deep pools) and therefore less available habitat for adult SAS. Shallower habitat increases the incidence of avian predation and water warming. b.Channel Constriction Discharge reduction will cause channel constriction where the proportion of open water habitat is reduced as the riparian canopy covers more of the channel. Although canopy shade benefits SAS by reducing warming from the sun, excess shading has recently been shown to negatively affect SAS presence in the Big Tujunga population of SAS (Aspen 2016). The amount of riparian cover is highly variable in the Santa Ana River. The increase in the relative percentage of riparian cover with Project reduced flow is not anticipated to have a negative impact on SAS since the change in any given reach of stream will be small (approximately 8 percent). c.Reduced Flow Velocity The reduced flow study modeled flow velocity and found that velocities would decrease with reduced flow volume. Using estimates of moderate (1.2 to 3.6 feet per second) and high flow (3.6 to 6.0 feet per second) as surrogates for suitable SAS habitat, approximately 9.8 percent of this habitat will be replaced with low velocity habitat (less than 1.2 feet per second) from downstream of the RIX outfall to Mission Boulevard. A flow of 1.2 feet per second is approximately twice the velocity needed to transport sand (2 millimeters in size or smaller) and it is expected that sandy substrate will dominate these flow velocity areas of the stream. A permanent loss (degradation) of 9.8 percent of the suitable SAS habitat in this reach of the Santa Ana River is a significant loss as this portion of the river supports a majority of the SAS in the watershed. d.Reduced Sediment Transport The reduced flow study modeled sand transport (particles up to 2 millimeters in size) (ESA 2015b). As flow velocity was reduced the amount and ability of water to transport sediment was reduced proportionately. With a 6 MGD reduction in flow the area of suitable SAS habitat is expected to be reduced by approximately 7 percent upstream of Riverside Avenue as sand buildup covers existing gravel beds. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 53 Flow reduction will also affect the rate of sediment transport downstream, which controls the rate of re-exposure after sand is deposited over existing gravel beds by storm flows. The Santa Ana River bottom is regularly observed to be mostly covered in sand (USFWS 2017). Because wastewater discharge provides all surface flow outside of infrequent and short-lived storm flows, sand is flushed downstream at a rate that is proportionate to the volume of wastewater discharged. A reduction in effluent discharge will slow the rate of sand transport downstream and lengthen the time required to re-establish suitable SAS (gravel bed re-exposure). Although not quantified, this is an important factor that negatively affects the health, fecundity, and overall viability of SAS in the mainstem Santa Ana River. Increased Abundance of Aquatic Predators The reduction in wetted habitat, depth, and velocity as result of the Project would generally create more shallow and slow moving waters within the Santa Ana River downstream of the RIX facility, which could increase habitat suitability for non-native aquatic predators such as bullfrog, sunfish, largemouth bass, and catfish. An increase in the non-native aquatic predator population negatively affects all SAS size classes and reduces recruitment and survival. Death/Injury It is not anticipated that SAS will be injured or killed at the onset of flow reduction. SAS are expected to redistribute themselves in the river. Amount or Extent of Take USGS estimated that 6,761 suckers occupied the river reach between the RIX outflow and Mission Boulevard in September 2015(Brown and May 2016). As stated in the BA the diversion of 6 MGD from the Santa Ana River at the RIX discharge would reduce the wetted habitat of the Santa Ana River channel from 4 to 7 percent, or 0.6 to 1.1 acres in the reach of the river from the RIX outlet to Mission Boulevard. Using a mean population density of 433 SAS per acre (6,761 suckers per 15.6 acres of existing wetted habitat) the BA assessed this permanent reduction in wetted habitat to result in a worst-case scenario of SAS numbers decreasing by 260 to 476 SAS. Due to the unequal distribution of SAS throughout this reach of river an average density should not be used to estimate the potential take or displacement of SAS. The 2015 Native Fishes Survey (Brown and May 2016) indicated that 92 percent (6,253 fish) of all SAS occurred in the reach of river between the RIX outfall and Riverside Avenue (4 percent of the current species’ range in the Santa Ana River watershed). Most SAS in the watershed (6,135 fish, 91 percent) were found associated with one pool/riffle complex in this reach that was approximately 100 meters in length. The river upstream of the Riverside Avenue Bridge is expected to be most heavily affected reduced flow velocity/sediment transport and increased sand buildup that effectively smothers existing gravel beds (7 to 9.8 percent habitat reduction, BA and as Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 54 discussed in the Reduced Flow Velocity section above, respectively). A 7 to 9.8 percent loss of suitable habitat in this reach of river equates to a reduction or displacement of SAS of between 438 and 613 fish, with additional losses expected downstream of Riverside Avenue. Draft results of the 2016 Native Fishes Survey (Brown and May 2017) indicate the current population of SAS is more evenly distributed than in 2015, with more fish found downstream of Riverside Avenue (5,219 SAS or 58 percent) than upstream (3,752 SAS or 42 percent). The difference in population estimates between 2015 and 2016 (6,761 and 8,971 fish, respectively) highlights the dynamic shift in SAS population numbers that can occur between years; a population increase of approximately 25 percent. Relatively continuous gravel beds were found from the RIX outlet down to beyond Mission Boulevard during the Riverwalk survey which occurred approximately one month after the 2016 Native Fishes Survey (USFWS 2017). Assuming the reduced flow study (ESA 2015b) is applicable to the 2016 Native Fishes Survey, a 7 to 9.8 percent loss of suitable habitat from the RIX outlet to Mission Boulevard equates to a reduction of SAS numbers of between 628 and 880 fish. This estimate of the decline in habitat values and associated reduced population size of SAS is more conservative than what was estimated in the BA (4 to 7 percent reduction in wetted habitat and 260 to 476 SAS), but it incorporates data that were unavailable when it was drafted. It is anticipated that the reduction of aquatic habitat, reduced depth, and lower velocities associated with the reduction of 6.43 MGD to the Santa Ana River will result in incremental effects of sand deposition that will reduce SAS egg development/survival, increase egg predation, reduce fitness of adults that may expend more energy finding suitable spawning habitat, and reduce survival of SAS at all life stages. To offset direct and indirect impacts to SAS and its habitat resulting from the loss of up to 22.3 percent of the calculated discharge from the RIX outfall into the Santa Ana River and the resulting substantive loss and degradation of SAS habitat between the RIX outfall and Mission Boulevard, Valley District will establish and implement an HMMP as described in CM 17. The HMMP will contain measures to increase the number of individual SAS in the Santa Ana River, increase the area of suitable and occupied habitat in this watershed, and establish two new populations in the watershed. The measures will either be implemented by Valley District in perpetuity or will be taken over by another entity upon HCP permit issuance. Measures and their expected outcomes are discussed more fully below in the discussion of Project Effects on Recovery. Effect on Recovery The recovery objectives (RO) identified in the Draft Recovery Plan for the Santa Ana Sucker (USFWS 2014b) are listed below. Work with landowners and other stakeholders to: RO 1. Rangewide Monitoring - Develop and implement a rangewide monitoring protocol to accurately and consistently document populations, occupied habitat, and threats; Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 55 RO 2. Recovery Research - Conduct research projects specifically designed to inform management actions and recovery; RO 3. Threat Reduction - Increase the abundance and develop a more even distribution of SAS within its current range by reducing threats to the species and its habitat; and RO 4. Range Expansion - Expand the range of the SAS by restoring habitat (if needed), and reestablishing occurrences within its historical range. CM 17 will help achieve a significant number of ROs, goals, and actions identified in the draft recovery plan, including: CM 17b will create an HMMP that will establish a long-term monitoring program (CM 17b.vi) that will either be implemented by Valley District in perpetuity or will be taken over by another entity (e.g., HCP) upon permit issuance. As a proposed covered activity as part of the HCP, SNRC and its long-term monitoring plan are anticipated to be incorporated into a rangewide monitoring protocol for SAS that is currently in development by Valley District. Measure CM 17b.vi will support RO 1. Measures discussed below will be included as part of the HMMP and will offset Project effects to SAS and its critical habitat and support the recovery of the species. CM 17b.i “Habitat Node Creation (microhabitat enhancements)” – This measure will support species’ recovery objectives and PCEs through range expansion of SAS in the mainstem of the Santa Ana River (RO 4) by enhancing coarse substrate abundance (PCE 2), water depth and velocity (PCE 3), complexity of instream habitat (PCE 6), and use of mainstem tributaries. It is also expected to reduce threats from variable wastewater discharge and the non-native red alga by more evenly distributing SAS throughout the mainstem perennial stream, away from points of discharge (RO 3). This measure is expected to offset Project impacts to stream habitat (reduced stream depth, water velocity, and temporal availability and amount of coarse substrate habitat) by using boulders, large woody debris, or addition of cobble/gravel to increase the abundance and quality of preferred microhabitats (riffle/pool habitat) suitable for SAS foraging and spawning. Current and future native fish studies and other associated research (e.g., stream restoration techniques, fish passage, etc.) will be used to create and adaptively manage these habitat features. Six habitat nodes will be created and maintained in perpetuity, adding at minimum 1.5 acres of SAS habitat (e.g., coarse substrate with variable flow velocities creating areas of scour and riffles) similar to or better than natural riffle/pool habitat measured during the Native Fishes Surveys (Brown and May 2016, 2017) in the Santa Ana River. The 1.5 acres of foraging and spawning habitat will be enhanced on the Santa Ana River associated with mainstem tributaries downstream of the USACE levee system in the City of Riverside. Fish densities are currently low in the downstream reaches of the river (below Mission Boulevard) due to a lack of suitable SAS habitat (low cover of cobble/gravel substrate). The enhanced habitat created by habitat nodes is expected to attract fish from upstream reaches and increase the use of associated mainstem tributaries. Attracting fish downstream of Mission Boulevard Bridge, will move them out of the area where Project effects are expected to be most Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 56 deleterious, as well as downstream of the densest distribution an cover of the invasive red alga, and where natural groundwater inputs reduce the effect of summer warming on surface flow. It is anticipated that SAS will occupy these habitat nodes in relatively high densities, more evenly spreading and increasing fish numbers in the Santa Ana River mainstem. In one natural riffle/pool complex located upstream of Riverside Avenue USGS found an average of 12.0 and 3.1 SAS per meter of river length (Brown and May 2016 and 2017, respectively). Using these estimates for a relative comparison of the expected change in SAS numbers with Project implementation, we anticipate 1.5 acres (6 habitat nodes or 600 meters of river length) of SAS habitat will sustain between 1,863 and 7,218 adult and young fish. An estimate in the net change in SAS numbers in the watershed is approximately an increase of between 983 and 6,338 fish (assuming a maximum Project impact of 880 SAS), or equivalent to an increase of between 10.9 and 70.6 percent of the 2016 SAS population. CM 17b.ii “Aquatic Predator Control Program” – This measure will support RO 3. It is anticipated that this measure will reduce the total number of non-native fish, reptile, and amphibian predators in the reach of the river from the RIX outlet to Mission Boulevard, in the habitat node creation areas, and in other locations where non-native predator removal is needed. Reduction of this threat will increase SAS survival and make available habitats to SAS that may currently be occupied by non-native predators. CM 17b.iii “Exotic Weed Management Program” – This measure will support RO 3. It will help improve ecological function of existing riparian habitat within the Project impact area by removing non-native plant species. Species that use high amounts of water, like giant reed and salt cedar, will be removed, reducing water losses in the system from evapotranspiration, improving surface flow. CM 17b.iv “Rialto Channel Water Temperature Management” – This measure will support RO 3 and 4. It will enhance water quality for SAS in Rialto Channel (Santa Ana River mainstem tributary) and further downstream by providing cool, high quality supplemental water from local groundwater sources to reduce the water temperature during the summer season. This measure will seasonally enhance habitat in an ecologically valuable tributary of the Santa Ana River, making it available for use by SAS year-round. Current data indicates that very few SAS occupy this tributary and upstream of the RIX outlet during late summer (Brown and May 2016, 2017). By attracting fish upstream of the RIX outlet they are moved outside of the impact area for both this Project and future RIX shutdown activities, as well as outside the known range of the non- native red alga. Combined with aquatic predator removal, after Project implementation these fish are expected to have reduced threats, increased overall health, larger eggs, and greater survival. CM 17b.v “Upper Watershed SAS Population Establishment” – This measure will support RO 4. It will reestablish two populations of SAS, one in upper City Creek, and the other will include an upper tributary cited in the draft SAS recovery plan. Both of these upper tributaries are part of the species’ historic range and have high potential for successful relocation and reestablishment of the species. This measure will offset reduced effluent discharge (surface water flow) in the Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 57 mainstem Santa Ana River downstream of the RIX outlet and associated degradation in quantity or quality of habitat that may result in reduced reproduction, fitness, recruitment and/or survivorship of SAS. Implementation of this measure will contribute to the recovery of the species by increasing the number of SAS locations (metapopulations) in the Santa Ana River, increasing the total number of SAS currently found in the watershed, and distributing the risk of a catastrophic event between multiple, managed locations. Effect on Critical Habitat The majority of the action area, except the Redlands Basins, is designated critical habitat for SAS. Project-related reduction in wetted habitat in the mainstem of the Santa Ana River is estimated to permanently degrade up to 1.21 acres of critical habitat. This represents approximately 0.02 percent of the 7,097 acres of designated critical habitat in the Santa Ana River Unit, and approximately 0.01 percent of the total 9,331 acres designated for the species. Flow reduction will gradually convert the edges of existing aquatic habitat to riparian habitat, as the channel width constricts. Primary constituent elements associated with instream habitat (i.e., flow, food sources) will be reduced, but those associated with riparian vegetation (i.e., shelter, cover) will remain intact. CM 17b, discussed above, will offset this degradation of ecological values important to SAS critical habitat by enhancing in stream habitat (habitat node creation, non-native plant removal, aquatic predator removal, and Rialto Channel summer water temperature reduction), reintroducing SAS to two historic tributaries in the upper Santa Ana River watershed, and managing and monitoring SAS at these three locations in perpetuity. CUMULATIVE EFFECTS Cumulative effects include the effects of future State, tribal, local or private actions that are reasonably certain to occur in the action area considered in this biological opinion. Future Federal actions that are unrelated to the proposed action are not considered in this section because they require separate consultation pursuant to Section 7 of the Act. We are not aware of any planned non-Federal actions affecting listed species that are reasonably certain to occur in the action area considered by this biological opinion. The City of San Bernardino Municipal Water Department has also proposed a reduction in discharge from the RIX facility in a Draft Environmental Impact Report for the Clean Water Factory. However, it is our understanding that the Clear Water Factory will seek CWSRF funding and funding and other support from the Bureau of Reclamation, and will therefore be the subject of a future consultation. ANALYTICAL FRAMEWORK FOR THE JEOPARDY AND ADVERSE MODIFICATION DETERMINATIONS Jeopardy Determination Section 7(a)(2) of the Endangered Species Act requires that Federal agencies ensure that any action they authorize, fund, or carry out is not likely to jeopardize the continued existence of listed species. “Jeopardize the continued existence of ” means “to engage in an action that Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 58 reasonably would be expected, directly or indirectly, to reduce appreciably the likelihood of both the survival and recovery of a listed species in the wild by reducing the reproduction, numbers, or distribution of that species” (50 CFR 402.02). The jeopardy analysis in this biological opinion relies on four components: (1) the Status of the Species, which evaluates the range-wide condition of the SBKR and SAS, the factors responsible for that condition, and its survival and recovery needs; (2) the Environmental Baseline, which evaluates the condition of the SBKR and SAS in the action area, the factors responsible for that condition, and the relationship of the action area to the survival and recovery of the SBKR and SAS; (3) the Effects of the Action, which determines the direct and indirect impacts of the proposed Federal action and the effects of any interrelated or interdependent activities on the SBKR and SAS; and (4) the Cumulative Effects, which evaluates the effects of future, non- Federal activities in the action area on the SBKR and SAS. In accordance with policy and regulation, the jeopardy determination is made by evaluating the effects of the proposed Federal action in the context of the current status of the arroyo toad, desert tortoise, flycatcher, and SBKR, taking into account any cumulative effects, to determine if implementation of the proposed action is likely to cause an appreciable reduction in the likelihood of both the survival and recovery of the SBKR and SAS in the wild. Adverse Modification Determination This biological opinion does not rely on the regulatory definition of “destruction or adverse modification” of critical habitat at 50 Code of Federal Regulations 402.02. Instead, we have relied on the statutory provisions of the Endangered Species Act to complete the following analysis with respect to critical habitat. In accordance with policy and regulation, the adverse modification analysis in this biological opinion relies on four components: (1) the Status of Critical Habitat, which evaluates the condition of designated critical habitat for the SBKR and SAS, in terms of primary constituent elements, the factors responsible for that condition, and the intended recovery function of the critical habitat overall; (2) the Environmental Baseline, which evaluates the condition of the critical habitat in the action area, the factors responsible for that condition, and the recovery role of the critical habitat in the action area; (3) the Effects of the Action, which determines the direct and indirect impacts of the proposed Federal action and the effects of any interrelated and interdependent activities on the primary constituent elements and how that will influence the recovery role of the affected critical habitat units; and (4) Cumulative Effects, which evaluates the effects of future non-Federal activities in the action area on the primary constituent elements and how that will influence the recovery role of affected critical habitat units. For purposes of the adverse modification determination, the effects of the proposed Federal action on the critical habitat of the SBKR and SAS are evaluated in the context of the range-wide condition of the critical habitat, taking into account any cumulative effects, to determine if the critical habitat range-wide would remain functional (or would retain the current ability for the Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 59 primary constituent elements to be functionally established in areas of currently unsuitable but capable habitat) to serve its intended recovery role for the SBKR and SAS. The analysis in this biological opinion places an emphasis on using the intended range-wide recovery function of critical habitat for the SBKR and SAS, and the role of the action area relative to that intended function as the context for evaluating the significance of the effects of the proposed Federal action, taken together with cumulative effects, for purposes of making the adverse modification determination. INCIDENTAL TAKE STATEMENT Section 9 of the Act and Federal regulation pursuant to section 4(d) of the Act prohibit the take of endangered and threatened species, respectively, without special exemption. Take is defined as to harass, harm, pursue, hunt, shoot, wound, kill, trap, capture, collect, or attempt to engage in any such conduct. Harm is further defined by us to include significant habitat modification or degradation that actually kills or injures a listed species by significantly impairing essential behavioral patterns, including breeding, feeding, or sheltering. Harass is defined by us as an action that create the likelihood of injury to listed species by annoying it to such an extent as to significantly disrupt normal behavioral patterns which include, but are not limited to, breeding, feeding, or sheltering. Incidental take is defined as take that is incidental to, and not the purpose of, the carrying out of an otherwise lawful activity. Under the terms of section 7(b)(4) and 7(o)(2) of the Act, such incidental take is not considered a prohibited taking under the Act, provided that such taking is in compliance with this incidental take statement. The measures described below are non-discretionary, and must be undertaken by the USEPA so that they become binding conditions of any permit or grant documents issued to the permittee, as appropriate, for the exemption in section 7(o)(2) to apply. The USEPA has a continuing duty to regulate the activity covered by this incidental take statement. If the USEPA fails to assume and implement the terms and conditions of the incidental take statement or to make them enforceable terms of permit or grant documents, the protective coverage of section 7(o)(2) may lapse. To monitor the impact of the incidental take, the USEPA must report the progress of the action and its impact on the species to the PSFWO as specified in the incidental take statement [50 CFR § 402.14(i)(3)]. The exemption provided by this incidental take statement to the prohibitions against take contained in section 9 of the Act extends only to the action area as described in the Environmental Baseline section of this biological opinion. San Bernardino Kangaroo Rat The exact distribution and population size of SBKR is difficult to estimate due to the dynamic conditions associated with their habitat and biology. Moreover, finding dead or injured SBKR within the construction area is unlikely as the individuals may be underground during construction activities. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 60 Exclusion fencing will be erected, and SBKR will be captured and relocated outside of the construction footprint. However, some animals may be missed and subsequently die as a result of Project clearing and grading activities. Some SBKR may also be injured or killed as a result of the capture and relocation efforts. Because we do not have site-specific data regarding the density of SBKR at the site of the proposed action, the precise number of animals that will be affected by the proposed action is difficult to quantify. Nevertheless, based on the best available information, we have established the following take exemptions for SBKR: 1. Death or injury of adult and/or juvenile SBKR from ground disturbance of up to 0.9 acres resulting from construction of the 24-inch pipeline and associated outlet structures at City Creek and at Redlands Basins. The amount or extent of incidental take will be exceeded if more than 0.9 acres is disturbed or more than one SBKR is known to be injured or killed from ground disturbance during construction of the 24-inch pipeline or the associated outlet structures in City Creek and the Redlands Basins. 2. Death or injury of SBKR as a direct result of the capture and release efforts from within the fenced work areas associated with City Creek and the Redlands Basins. Incidental take will be exceeded if more than one SBKR is known to be injured or killed by the capture/relocation efforts during construction of the 24-inch pipeline and associated outlet structures. 3. Death or injury of adult and/or juvenile SBKR from water inundation of up to 8.2 acres of potentially occupied habitat resulting from the initial flushing of effluent into City Creek. The amount or extent of incidental take will be exceeded if more than 8.2 acres is inundated in the initial flushing of effluent into City Creek. Santa Ana sucker The exact distribution and population size of SAS is difficult to estimate due to the dynamic conditions associated with their habitat and biology. Some SAS may be injured or killed as a result of the capture and relocation efforts during habitat node creation, during long-term monitoring, during electroshocking activities for predator removal, or for the purposes of salvage in City Creek or another translocation stream. Because we do not have site-specific data regarding the density of SAS at the site of the proposed action, the precise number of animals that will be affected by the proposed action is difficult to quantify. Nevertheless, based on the best available information, we have established the following take exemptions for SAS: 1. Death or injury of adult and/or young SAS from displacement due to channel constriction and habitat loss of up to 1.21 acres resulting from up to 6.43 MGD of discharge flow reduction from the RIX facility. The amount or extent of incidental take will be exceeded if more than 1.21 acres of aquatic habitat is permanently lost from discharge flow reduction. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 61 2. Capture and relocation of all SAS from within construction areas during construction and/or reconstruction of six habitat nodes in the mainstem of the Santa Ana River. Incidental take will be exceeded if more than six SAS are injured or killed during capture and relocation activities during construction and/or reconstruction of the six habitat nodes (1 fish per node) in any one calendar year. 3. Capture of SAS from the Santa Ana River for translocation to the upper watershed or to supplement the captive-population, for purposes of breeding and subsequent relocation. Incidental take will be exceeded if more than 25 percent of the Santa Ana River population or 400 SAS per year are removed for translocation/relocation purposes, per the programmatic consultation on SAS recovery permits (USFWS 2015a). 4. Capture and measurement of SAS from the mainstem of the Santa Ana River and from the two new populations created in the species’ historic range for long-term monitoring and management. Incidental take will be exceeded if more than six SAS are injured or killed during long-term species monitoring in the Santa Ana River watershed per calendar year, or a mean of two (2) fish per metapopulation. 5. Capture and relocation of all SAS for the purpose of salvage from drying habitat or other threats that subject them to imminent mortality. There is no limit on the numbers of SAS that may be relocated during salvage efforts. EFFECT OF THE TAKE In this biological opinion, we have determined the level of anticipated take is not likely to result in jeopardy to SBKR or SAS, or adversely modify SBKR or SAS critical habitat. CONCLUSION After reviewing the current status of the SBKR and SAS, environmental baseline for the action area, effects of the proposed action, and cumulative effects, it is the USFWS’s biological opinion that the proposed action is not likely to jeopardize the continued existence of SBKR or SAS, or adversely modify SBKR or SAS critical habitat. Our conclusion is based on the following: 1. Direct and indirect impacts to SBKR will be minimized through the implementation of the conservation measures; 2. The acquisition of long-term conservation of habitat to offset the impacts of the proposed action will support the range-wide conservation (recovery) of SBKR; 3. The temporary loss of SBKR habitat, including designated critical habitat is relatively small and will be restored, thus minimizing effects to individuals and their territories, and connectivity across the Project area; Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 62 4. The permanent loss of SBKR designated critical habitat represents a small proportion of the critical habitat within the affected unit; thus, the ecological function and values of designated critical habitat will be maintained in this unit and within the overall designation; 5. The permanent loss of designated SAS critical habitat will be offset by the creation and maintenance of habitat nodes and cooling of summer water temperature in Rialto Channel; thus, the ecological function and values of designated critical habitat will be maintained in this unit and within the overall designation; 6. The enhancement of Santa Ana River aquatic and riparian habitats, reintroduction to portions of its historic range, and long-term management of existing and new populations to offset the displacement of SAS in the river by the proposed action will support the range-wide conservation (recovery) of SAS. REASONABLE AND PRUDENT MEASURES The reasonable and prudent measures below are non-discretionary. Failure to comply may cause the protective coverage of section 7(o)(2) to lapse. The following reasonable and prudent measures are necessary and appropriate to minimize incidental take of SBKR and SAS: 1. The USEPA and or Valley District will monitor and report on compliance with the established take threshold for federally listed wildlife species associated with the proposed action. 2. The USEPA and or Valley District will monitor and report on compliance with, and the effectiveness of, the proposed conservation measures for the Project. TERMS AND CONDITIONS To be exempt from the prohibitions of section 9 of the Act, the USEPA must comply with the following terms and conditions, which implement the reasonable and prudent measures described in the previous section, and the reporting and monitoring requirements. These conditions are non-discretionary. All Species To implement reasonable and prudent measure number 1(monitor and report on compliance with established take thresholds), the USEPA and or Valley District will: 1-1 Ensure the Authorized Biologist(s) or Biological Monitor(s) who will trap or handle federally listed species are qualified and have been pre-approved by PSFWO for work on this Project. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 63 1-2 Implement the CMs as specified in the Project description evaluated in this biological opinion. If the Biological Monitor detects impacts to federally listed species from Project-related activities in excess of that described in the above incidental take statement, the USEPA, Valley District, or the Biological Monitor will contact the PSFWO within 24 hours. At that time, the PSFWO and the USEPA or Valley District must review the circumstances surrounding the incident to determine whether additional protective measures are required. Project activities may continue pending the outcome of the review, provided that the proposed protective measures and any appropriate terms and conditions of this biological opinion have been and continue to be fully implemented. 1-3 If the amount of authorized take for any federally listed species as defined in the Incidental Take Statement is exceeded, the USEPA must reinitiate consultation, pursuant to the implementing regulations for section 7(a)(2) of the Endangered Species Act at 50 CFR 402.16, on the proposed action. To implement reasonable and prudent measure number 2 (monitor and report on compliance with, and the effectiveness of, the proposed conservation measures), the USEPA or Valley District will: 2-1 Within 45 days of the completion of the proposed action, the USEPA or Valley District must provide a report to the PSFWO that provides details on the effects of the action on the federally listed species. Specifically, the report must include information on any instances when federally listed species were killed, injured, or handled; the circumstances of such incidents; and any actions undertaken to prevent similar instances from re-occurring. 2-2 Ensure USFWS personnel have the right to access and inspect the Project site during Project implementation (with prior notification from us) for compliance with the Project description, conservation measures, and terms and conditions of this biological opinion. San Bernardino Kangaroo Rat To implement reasonable and prudent measure number 1(monitor and report on compliance with established take thresholds), the USEPA and or Valley District will: SBKR-1 In addition to the conservation measures outlined in this biological opinion, when trapping, collecting, and releasing any SBKR found in the construction area or vicinity during the course of work, the Qualified Biologist/Biological Monitor will implement the following measures: a. Provide traps in sufficient numbers to provide adequate coverage of the construction area to ensure that any SBKR which are present are captured. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 64 Mark all trap locations with flagging, reflective tape, or other technique that is visible under day and night conditions. b. Use only 12-inch Sherman or wire-mesh live traps; 9-inch models may be used only if obtained before March 13, 1990. Ensure all trap models are modified to eliminate or substantially reduce the risk of SBKR injury (e.g., tail lacerations or excisions). Do not place any batting in the traps. c. Sterilize traps previously used outside of San Bernardino County. d. Conduct trapping only if the nightly low temperature is forecast to be 50 degrees Fahrenheit or above, and if no extended periods of wind, rain, fog, or other inclement weather will occur to make conditions unsuitable for trapping or will unduly imperil the lives of the animals. e. Adjust traps by hand each time they are placed, set, and baited, at a sensitivity level appropriate for capturing SBKR. Visually inspect all traps before closing, and close them by hand. f. Check all traps at least twice each night, once near midnight and again at sunrise. g. Identify all trap locations with a unique identification code on a log sheet, note the date and time each trap is checked, and periodically review the log sheet to ensure no traps are inadvertently missed. Field documentation will be available to USFWS personnel upon request. h. Hold individual SBKR for no longer than 1 hour before releasing them, and relocate them as quickly as possible; this will mean selecting release locations in advance of trapping. Do not place the animal in a plastic bag; transfer it in a clean, structurally sound, breathable container with adequate ventilation. Do not at any time allow the animal to become stressed due to temperature extremes (either hot or cold). Santa Ana sucker To implement reasonable and prudent measure number 1(monitor and report on compliance with established take thresholds), the USEPA and/or Valley District will: SAS-1-1 In addition to the CMs outlined in this biological opinion, when capturing and releasing any SAS found in the construction area, the Qualified Biologist will implement the following measures: Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 65 a. Only the use of fine mesh (2 to 4 millimeter) knot-less seine nets, fine mesh (4 to 6 millimeter) knot-less hoop nets, modified hoop nets, or similar traps, or dip nets of 0.5 millimeter or finer mesh will be used for capturing SAS. b. Survey methods will be selected to minimize potential injury or mortality to SAS and potential disturbance or damage to breeding areas. c. If seines are used, particular care will be taken to avoid incidental injury or mortality to SAS that may be caught and suffocated in algal mats or sand. d. Care will also be taken to keep SAS in river water as much as possible and they should be released as close to the point of capture as possible. e. Use of non-conventional sampling gear must first be approved by the PSFWO. f. Electrofishing may be employed with the following restrictions upon following under the following conditions: i. Electrofishing activities will not be conducted from March 1 through July 31. ii. A Qualified Biologist will be the crew leader during electrofishing. The crew leader must have at least 100 hours of electrofishing experience in the field using similar equipment. iii. The crew leader will provide basic training in electrofishing for the crew consisting of: 1. Definitions of basic terminology (e.g., galvonotaxis, narcosis, and tetany). 2. An explanation of how electrofishing attracts fish. 3. An explanation of how gear can injure fish and how to recognize signs of injury. 4. A review of these terms and conditions as well as the manufacturer’s recommendations. 5. A demonstration of the proper use of electrofishing equipment, the role each crew member performs, and basic gear maintenance. 6. A review of safety considerations. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 66 iv. Prior to conducting electrofishing activities, visual surveys will be conducted to search for small, young SAS. If more than 100 small SAS (less than 30 millimeters in total length) occur within the sampling site, electrofishing activities will not be conducted. v. To avoid potential suffocation of SAS, electrofishing will not occur in areas where algal mats are located. vi. All captured suckers collected and retained will be placed in river water in insulated, aerated, and covered containers. Temperature, dissolved oxygen levels, and fish behavior (e.g., fish gulping at the surface indicating low dissolved oxygen levels) should be recorded to ensure that ambient river water quality levels are maintained. vii. Valley District or the Qualified Biologist will coordinate research or long-term monitoring activities with fisheries personnel from other agencies to avoid duplication of effort and unnecessary stress to SAS. Specific stream reaches will be electrofished no more than once every 3 months. viii. Only direct current or pulsed direct current will be used. ix. Each session will begin with pulse width and rate set to the minimum needed to capture SAS. These settings will be gradually increased, if necessary, only to the point where SAS are immobilized and captured. Initial pulse width will be no more than 500 microseconds and is not to exceed 5 milliseconds. Care will be taken when exceeding a pulse rate of 30 Hertz. In general, exceeding 30 Hertz will injure more fish. x. Fish will be netted and removed from the electric fields as quickly as possible. xi. Sampling will be terminated if injuries or abnormally long recovery times are observed. xii. Prior to activities that may involve handling SAS, all biologists will ensure that hands are free of sunscreen, lotion, or insect repellent. xiii. Handling may involve taking length and weight measurements to assess size and age classes of individuals and fish health, and will require minimal exposure out of water. Bagged portions of seines and nets will remain in that water until all SAS are removed, or SAS will be transferred to shallow containers of clean water, aerated if Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 67 necessary, and placed in a location that will not result in exposure to extreme temperatures. xiv. Any SAS exhibiting signs of physiological stress will be immediately released at the point of capture or as close to that location as possible. All fish will be returned in good condition to the point of capture unless an adverse disturbance is occurring, in which case they may be relocated away from disturbance areas and moved to the nearest part of the stream with appropriate habitat. Nets may be used to temporarily preclude individuals from returning to the immediate capture site. xv. In the event that the number of individuals allowed to be incidentally injured or killed is exceeded during the performance of permitted activities, the Qualified Biologist must immediately cease the activity until reauthorized by the Carlsbad Fish and Wildlife Office (CFWO) or PSFWO. SAS-1-2 In addition to the CMs outlined in this biological opinion, when capturing SAS for captive rearing and translocation purposes, the Qualified Biologist will implement the measures discussed in the Draft Captive Breeding and Translocation Plan for Santa Ana Sucker (Dudek 2016a) and in the programmatic consultation for SAS recovery permits (USFWS 2015a) including but not limited to: a. A survey will be conducted to determine the general health of the donor SAS population prior to attempting collection for translocation purposes; b. To maximize genetic diversity within a collected population, SAS will be taken from multiple locations (e.g., pools/sampling areas) within a stream, as feasible; c. SAS will be visually examined for disease and signs of spawning (e.g., tubercles and lateral stripes). SAS with signs of disease, spawning, or behavior issues such as flashing or lethargy will not be used for translocation. In addition, fish with physical abnormalities, such as fungal lesions, white spot, skin hemorrhage or lesions, darkened skin, eroded fins, or excessive mucus production will also not be used in translocation. CONSERVATION RECOMMENDATIONS Section 7(a)(1) of the Act directs Federal agencies to utilize their authorities to further the purposes of the Act by carrying out conservation programs for the benefit of endangered and threatened species. Conservation recommendations are discretionary agency activities to minimize or avoid adverse effects of a proposed action on listed species or critical habitat, help Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 68 implement recovery plans, or to develop information. We recommend the USEPA implement the following actions: 1. Shot Hole Borer Monitoring and Research Objective: Increase the amount of monitoring and support ongoing research for the long-term management of this invasive non-native insect (Polyphagous and Kuroshio shot hole borer) in order to minimize the long-term effects of this insect-fungal pathogen on the riparian plant community. Vireo, flycatcher, SAS and other riparian- associated species would benefit from these actions. Funding or the contribution of other resources would supplement the current volunteer monitoring program started in 2016. Long-term monitoring of shot hole borer along the Santa Ana River and its upper tributaries, including the establishment, maintenance, and monitoring of funnel or other type of insect traps at 1-mile intervals along stream corridors, is needed in order to follow the invasion of this insect across the Santa Ana River watershed. Fund research focused on control of the shot hole borer insect, its symbiotic fungi, and/or biocontrol agents as part of a long-term management strategy for the species. 2. Invasive Red Alga Management in the Santa Ana River Objective: Develop and implement a strategy to manage (reduce) the non-native invasive red algae in the Santa Ana River. This action would increase the amount of SAS habitat available for use in the mainstem of the river. Supplying the stream with relatively cold water (less than 55 degrees Fahrenheit) for extended periods of time has been observed to decrease the amount of algal cover and cause filament bleaching and death (Russell et al. 2016). Extirpation of the species from the river may be possible with cold-water treatments but field testing is needed. High pulse flow events would contribute to managing red alga abundance in the occupied river by fracturing algal filaments with high velocity flow and/or by rolling the cobble and gravel. Funding or contributing resources to test these, or other control methods, would benefit SAS if an effective strategy for managing red alga can be found. 3. Rialto Wastewater –Reduce Water Temperature Objective: Further reduce the water temperature in Rialto Channel. The current effluent flows down a flat and shallow concrete channel prior to entering the plunge pool downstream of Agua Mansa Road. During warm days this water may warm substantially reducing habitat suitability downstream for SAS. 3.Rialto Wastewater –Reduce Water Temperature Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 69 Moving the discharge location to the plunge pool downstream of Agua Mansa Road will have the effect of minimizing effluent warming that currently occurs in the concrete-lined portion of Rialto Channel. Water temperature may increase by more than 5 degrees Fahrenheit during hot periods in this concrete-lined channel (USGS 2015). An alternative or additional action would be to shade (shade cloth or shade balls) the serpentine holding tank at the Rialto Wastewater Treatment Plant, or other exposed effluent pools in the treatment stream in order to minimize warming. Evaporative cooling and/or solar powered water chilling are other possibilities. 4. Regional Recycled Purple Pipe Project Objective: Addition of a perennial supply of water to the mainstem of the Santa Ana River to contribute to the low-flow stream. Project impacts include the permanent reduction of available habitat for SAS downstream of RIX in the Santa Ana River. This recommendation would reduce the impact of the Project on downstream resources, including SAS, by offsetting discharge reduction in the river with an alternative source of effluent discharge (Riverside effluent). The HCP is proposing to move the discharge location of the City of Riverside’s effluent further upstream, near Riverside Avenue. In addition to increasing the low-flow volume, depth, and flow velocity of the river, it would also create a new mainstem tributary and new SAS habitat. 5. Rialto Tank – High Flow Pulse Events Objective: Capture and store water that can be used to serve multiple conservation purposes. Project reduced discharge will degrade SAS habitat by accumulating and transporting fine sediment (sand) at a slower rate than the current condition. In order to maximize the flexibility of the tank there should be two inlets for receiving water and a variable control outlet valve. The two water sources may include, but should not be limited to, groundwater (CM 17b.iv) and Rialto wastewater. The tank and valves should be sized to achieve a maximum discharge and/or duration of sustained discharge, based upon specific conservation objectives. The Rialto tank is being considered as part of the HCP to benefit SAS. The maximum discharge of a high pulse flow event would likely be equivalent to bank full flow. Flow velocity is directly correlated with the rate of sediment transport. In additional to transporting sand downstream more rapidly and exposing existing gravel beds, high flow pulsed water will turn a portion of the gravels and cobbles, reducing the abundance of the invasive red alga. If used in combination with water temperature reduction, an effective management strategy of the red alga may be possible. In addition, the Rialto tank would serve to further reduce the effect of RIX shutdowns on SAS if it was automatically synchronized to discharge during shutdown events. The duration of sustained discharge should be tied to a potential maximum duration of a 5.Rialto Tank –High Flow Pulse Events Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 70 RIX shutdown as well as modeled to achieve an amount of sediment transported over an identified distance. 6. RIX Facility – High Flow Pulse Events Objective: Create an agreement with the City of San Bernardino to enable artificial flushing flows using RIX effluent. This could be used in combination with or an alternative to the Rialto tank to create high pulse flow events in the river to benefit SAS. 7. Recovery Research Objective: Participate in research projects that further species’ recovery. Research is needed that identifies currently unrealized threats to SAS (e.g., effects of unregulated chemicals commonly found in effluent wastewater and/or elevated water temperature on SAS development, health, and longevity). Research designed to aid in SAS recovery supports SAS recovery objective 2. REINITIATION NOTICE This concludes formal consultation regarding the Project as described in materials submitted to us. As provided in 50 CFR §402.16, reinitiation of formal consultation is required where discretionary Federal agency involvement or control over the action has been retained (or is authorized by law) and if (1) the amount or extent of incidental take is exceeded; (2) new information reveals effects of the agency action that may affect listed species or critical habitat in a manner or to an extent not considered in this opinion; (3) the agency action is subsequently modified in a manner that causes an effect to the listed species or critical habitat not considered in this opinion; or (4) a new species is listed or critical habitat designated that may be affected by the action. In all instances where the amount or extent of incidental take is exceeded, any operations causing such take must cease pending reinitiation. If you have any questions about this biological opinion, or the consultation process, please contact Kai Palenscar of the PSFWO, 777 E. Tahquitz Canyon Way, Suite 208, Palm Springs, California 92262 at 760-322-2070, extension 408. Sincerely, G. Mendel Stewart Field Supervisor y gRIX Facility –High Flow Pulse Events Digitally signed by GEORGE STEWART Date: 2017.03.13 17:55:28 -07'00' Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 71 LITERATURE CITED [Aspen] Aspen Environmental Group. 2016. Habitat Parameters for Santa Ana Sucker Based on 5-Year Population Study in Big Tujunga Creek, CA. Unpublished report. Boland, J.M. 2016. The impact of an invasive ambrosia beetle on the riparian habitats of the Tijuana River Valley, California. PeerJ. 4:e2141. Brown, J.S. and B.A. Harney. 1993. Population and community ecology of heteromyid rodents in temperate habitats. Pages 539-574 in: H. H. Genoways and J. H. Brown (eds.), Biology of the Heteromyidae. Special Publication No. 10, the American Society of Mammalogists. August 20, 1993. Brown L.R. and J.T. May. 2016. 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Rugman-Jones, M. Twizeyimana, A. Gonzalez, and T. Thibault. 2013. Host Range of Fusarium Dieback and Its Ambrosia Beetle (Coleoptera: Scolytinae) Vector in Southern California. The American Phytopathological Society. 97:938-951. Website: http://eskalenlab.ucr.edu Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 73 Eskalen A. 2017. Eskalen Lab website. University of California Riverside. http://eskalenlab.ucr.edu accessed February 19, 2017. Ganguly, A.R., K. Steinhaeuser, D.J. Erickson III, M. Branstetter, E.S. Parish, N. Singh, J.B. Drake, and L. Buja. 2009. Higher trends but larger uncertainty and geographic variability in 21st century temperature and heat waves.Proceedings of the National Academy of Sciences. September 15, 2009, Vol. 106 no. 37:15555–15559. Glick, P., B.A. Stein, and N.A. Edelson, editors. 2011.Scanning the Conservation Horizon: A Guide to Climate Change Vulnerability Assessment.National Wildlife Federation, Washington, D.C. Greenfield, D.W., S.T. Ross, and D.G. Deckert. 1970. Some aspects of the life history of the Santa Ana Sucker, Catostomus (Pantosteus) santaanae (Snyder). California Department of Fish and Game 56:166-179. Haas, C. D. 2000. Distribution, relative abundance, and roadway underpass responses of carnivores throughout the Puente-Chino Hills. 110 pp. Master's Thesis, Pomona: California State Polytechnic University. Haglund, T.R., J.N. Baskin, and C.C. Swift. 2003. Results of the Year 3 (2003) Implementation of the Santa Ana Sucker Conservation Program for the Santa Ana River. Unpublished report prepared by San Marino Environmental Associates for Santa Ana Sucker Conservation Team. 142 pp. Hoffman, S., R. Zembal, N. Housel. 2014. Status and Management of the Least Bell’s Vireo and Southwestern Willow Flycatcher in the Santa Ana River Watershed, 2014, and Summary Data by Site and Watershed-wide, 2000-2014. Prepared by the Santa Ana Watershed Association for Orange County Water District and U.S. Fish and Wildlife Service. Huber, M., and R. Knutti. 2011. Anthropogenic and natural warming inferred from changes in Earth’s energy balance. Nature Geoscience Letters. Published online: 4 December 2011, DOI:10.1038/NGEO1327 (Nature Geoscience 5, 31-36 (2012)). [IPCC] Intergovernmental Panel on Climate Change. 2013a. Annex III: Glossary [Planton, S. (ed.)]. In: Climate Change 2013: The Physical Science Basis. Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Stocker, T.F., D. Qin, G.-K. Plattner, M. Tignor, S.K. Allen, J. Boschung, A. Nauels, Y. Xia, V. Bex and P.M. Midgley (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA. pg. 1450. [IPCC] Intergovernmental Panel on Climate Change. 2013b. Summary for Policymakers. In: Climate Change 2013: The Physical Science Basis. Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Stocker, T.F., D. Qin, G.-K. 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The status and known distribution of the San Bernardino kangaroo rat (Dipodomys merriami parvus): Field surveys conducted between 1987 and 1996. Report prepared for the U.S. Fish and Wildlife Service by the San Bernardino County Museum; September 1997. 62 pp. Meehl, G.A., T.F. Stocker, W.D. Collins, P. Friedlingstein, A.T. Gaye, J.M. Gregory, A. Kitoh, R. Knutti, J.M. Murphy, A. Noda, S.C.B. Raper, I.G. Watterson, A.J. Weaver and Z.-C. Zhao, 2007: Global Climate Projections. In: Climate Change 2007: The Physical Science Basis. Contribution of Working Group I to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change [Solomon, S., D. Qin, M. Manning, Z. Chen, M. Marquis, K.B. Averyt, M. Tignor and H.L. Miller (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA. Moyle, P.B. 2002. Inland Fishes of California: Revised and Expanded. University of California Press. Berkeley, California. Prinn, R., S. Paltsev, A. Sokolov, M. Sarofim, J. Reilly, H. Jacoby. 2011. Scenarios with MIT integrated global systems model: significant global warming regardless of different approaches. Climatic Change (2011) 104:515–537. [RWQCB] Regional Water Quality Control Board (Santa Ana Region). 2016. Colton/San Bernardino Regional Tertiary Treatment Rapid Infiltration and Extraction Facility: Update on Operational Impacts to Santa Ana Sucker. Report for Meeting Agenda Item Number 11. December 16, 2016. [RCRCD] Riverside-Corona Resource Conservation District. 2016. Upper Santa Ana River HCP: Alder and Hemlock Creeks, Fish Presence/Absence Surveys – Summer 2016. Survey Report. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 75 Russell, K., B. Mills, T. Hoemke, R. Marks, and K. Palenscar. 2016. Effects of a Non-native, invasive Red Alga (Compsopogon cearuleus), on the Foraging Behavior, Reproductive Success and Habitat Preference of the Santa Ana Sucker (Catostomus santaanae). Prepared by the Riverside-Corona Resource Conservation District and submitted to the Palm Springs Fish and Wildlife Office, Palm Springs, California. Saiki, M.K. 2000. Water Quality and Other Environmental Variables Associated with Variation in Population Densities of the Santa Ana Sucker Final Report. U. S. Geological Survey report prepared for the National Fish and Wildlife Foundation. 117 pp. [Valley District]. San Bernardino Valley Municipal Water District 2017. Sterling Natural Resource Center Biological Assessment Clarification and Amendment. Supplemental document to SNRC Biological Assessment and submitted to the Palm Springs Fish and Wildlife Office, Palm Springs, California. February 6, 2017. Sawyer, J.O., T. Keeler-Wolf, and J.M. Evens. 2009. A Manual of California Vegetation, Second Edition. California Native Plant Society, Sacramento. 1300 pp. Solomon, S., D. Qin, M. Manning, R.B. Alley, T. Berntsen, N.L. Bindoff, Z. Chen, A. Chidthaisong, J.M. Gregory, G.C. Hegerl, M. Heimann, B. Hewitson, B.J. Hoskins, F. Joos, J. Jouzel, V. Kattsov, U. Lohmann, T. Matsuno, M. Molina, N. Nicholls, J.Overpeck, G. Raga, V. Ramaswamy, J. Ren, M. Rusticucci, R. Somerville, T.F. Stocker, P. Whetton, R.A. Wood, and D. Wratt. 2007. Technical Summary. In: Climate Change 2007: The Physical Science Basis. Contribution of Working Group I to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change [Solomon, S., D. Qin, M. Manning, Z. Chen, M. Marquis, K.B. Averyt, M. Tignor and H.L. Miller (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA. [SWRCB] State Water Resources Control Board. 2017. California Integrated Water Quality System. Website: https://ciwqs.waterboards.ca.gov/ciwqs. Accessed February 6, 2017. Swift, C.C. 2001. The Santa Ana sucker in the Santa Ana River: distribution, relative abundance, spawning areas and impact of exotic predators. Final report submitted to the Ad-Hoc Santa Ana Sucker Discussion Team. June. [USFWS] U.S. Fish and Wildlife Service. 1998a. Draft recovery plan for the least Bell’s vireo (Vireo bellii pusillus). U.S. Fish and Wildlife Service, Portland, Oregon. [USFWS] U.S. Fish and Wildlife Service. 1998b. Endangered and threatened wildlife and plants: Emergency rule to list the San Bernardino kangaroo rat as endangered. (63 FR 3835). [USFWS] U.S. Fish and Wildlife Service. 1998c. Endangered and threatened wildlife and plants: Final rule to list the San Bernardino kangaroo rat as endangered. (63 FR 51005). Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 76 [USFWS] U.S. Fish and Wildlife Service. 2000a. Endangered and threatened wildlife and plants; Final designation of critical habitat for the San Bernardino kangaroo rat (Dipodomys merriami parvus). Proposed rule. Federal Register 65:77178. [USFWS] U.S. Fish and Wildlife Service. 2000b. Endangered and threatened wildlife and plants; threatened status for the Santa Ana sucker. Federal Register 65:19686-19698. [USFWS] U.S. Fish and Wildlife Service. 2002a. Endangered and threatened wildlife and plants; Final designation of critical habitat for the San Bernardino kangaroo rat (Dipodomys merriami parvus). Final rule. Federal Register 67:19812. [USFWS] U.S. Fish and Wildlife Service. 2002b. Section 7 Consultation for Operations of Seven Oaks Dam, San Bernardino County, California (1-6-02-F-1000.10). Carlsbad Fish and Wildlife Office, Carlsbad, California. [USFWS] U.S. Fish and Wildlife Service. 2006. Least Bell’s vireo 5-year review. U.S. Fish and Wildlife Service, Region 8, Carlsbad, California. 26 pp. [USFWS] U.S. Fish and Wildlife Service. 2007. Endangered and threatened wildlife and plants; Revised critical habitat for the San Bernardino kangaroo rat (Dipodomys merriami parvus). Proposed rule. Federal Register 72:33808. [USFWS] U.S. Fish and Wildlife Service. 2008. Endangered and threatened wildlife and plants; Final designation of critical habitat for the San Bernardino kangaroo rat (Dipodomys merriami parvus). Final rule. Federal Register 73:61936 [USFWS] U.S. Fish and Wildlife Service. 2009. San Bernardino kangaroo rat 5-year review. U.S. Fish and Wildlife Service, Region 8, Carlsbad, California. 32 pp. [USFWS] U.S. Fish and Wildlife Service. 2010a. Santa Ana River woolly-star 5-year review. U.S. Fish and Wildlife Service, Region 8, Carlsbad, California. 30 pp. [USFWS] U.S. Fish and Wildlife Service. 2010b. Endangered and Threatened Wildlife and Plants; Revised Critical Habitat for Santa Ana Sucker. Final Rule. Federal Register 75:77962. [USFWS] U.S. Fish and Wildlife Service. 2011. Santa Ana sucker (Catostomus santaanae) 5- Year Review: Summary and Evaluation. Unpublished document prepared by the U.S. Fish and Wildlife Service Carlsbad Fish and Wildlife Office, Carlsbad, California. [USFWS] U.S. Fish and Wildlife Service. 2012. Recovery outline for Santa Ana sucker (Catostomus santaanae). 38 pp. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) 77 [USFWS] U.S. Fish and Wildlife Service. 2014a. Southwestern willow flycatcher 5-year review. U.S. Fish and Wildlife Service, Region 2, Phoenix, Arizona. [USFWS] U.S. Fish and Wildlife Service. 2014b. Draft Recovery Plan for the Santa Ana sucker. U.S. Fish and Wildlife Service, Pacific Southwest Region, Sacramento, California. 61 pp. [USFWS] U.S. Fish and Wildlife Service. 2015a. Programmatic Intra-Service Formal Section 7 Consultation on Issuance of 10(a)(1)(A) Permits for the Santa Ana Sucker (FWS- CFWO-1480113-14F0l71). Carlsbad Fish and Wildlife Office, Carlsbad, California. [USFWS] U.S. Fish and Wildlife Service. 2015b. Intra-Service Consultation on Issuance of Section 10(a)(1)(B) Permit for the Incidental Take of San Bernardino Kangaroo Rat pursuant to Diversified Pacific Residential Development, City of Redlands, San Bernardino County, California (FWS-SB-14B0144-15F065). Palm Springs Fish and Wildlife Office, Palm Springs, CA. [USFWS] U.S. Fish and Wildlife Service. 2016. Intra-Service Consultation on Issuance of Section 10(a)(1)(B) Revised Permit for the Incidental Take of San Bernardino Kangaroo Rat pursuant to Diversified Pacific Residential Development, City of Redlands, San Bernardino County, California (FWS-SB-14B0144-15F065-R001). Palm Springs Fish and Wildlife Office, Palm Springs, CA. [USFWS] U.S. Fish and Wildlife Service. 2017. Data compiled from 2006-2016 Riverwalk Survey data sheets. On file in the Palm Springs Fish and Wildlife Office, Palm Springs, California. [USFWS and NMFS] U.S. Fish and Wildlife Service and National Marine Fisheries Service. 1986. Preamble to implementation regulations for interagency cooperation. 50 CFR Part 402. Federal Register 51:19932. [USFWS and NMFS] U.S. Fish and Wildlife Service and National Marine Fisheries Service. 1998. Endangered species consultation handbook available at: http://www.fws.gov/endangered/esa-library/pdf/TOC-GLOS.PDF. [USGS] U.S. Geological Survey. 2015. Santa Ana River Discharge and Temperature Update January 15 to July 20, 2015. Presentation given to Valley District and USFWS. Mr . D o u g l a s E . E b e r h a r d t ( F W S - S B - 1 6 B 0 1 8 2 - 1 7 F 0 3 8 7 ) 7 8 Fi g u r e 1 . St e r l i n g N a t u r a l R e s o u r c e s C e n t e r – A c t i o n A r e a Appendix A Exclusionary Fence Design and Materials Fencing Options: 1. Hardware Cloth Fence The fence will consist of the following: a. Material will be ¼-in mesh, 23-gauge galvanized hardware cloth; b. Height will be a minimum of 3 feet above grade and 2 feet below grade; and c. Support will be with standard wire fence “T-posts.” Hardware cloth is normally buried 2 feet below grade; however, if it’s not possible to bury the fence because of the substrate (e.g., a high percentage of rocks) or not appropriate for the project (i.e., the disturbance will be only be for a short term), upon approval of the PSFWO, it can be placed at grade as follows: d. Bend the 2 feet of fence that would be below grade so that it is at grade and facing out away from the work area and then cover it with sandbags e. If “T-posts” cannot be driven in the ground, uprights can be fabricated with rebar which have three legs welded at their base so they are free standing. 2. Chain Link Fence Backed by Shade Cloth A possible fencing alternative when the fence will not extend below grade (see criteria above), is chain link fence backed by shade cloth with shade cloth extending out from the fence a minimum of 2 feet at grade, and weighted down by sand bags or suitable alternative, e.g., boulders (Figure 1). Hand methods will be used to prepare the site for installation of the fence, e.g., the removal of vegetation in the path of the fence; unless an alternative method is approved by the PSFWO. Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387) Figure 1.Photograph of Chain Link and Shade Cloth Fence Configuration STATE OF CALIFORNIA CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY STATE WATER RESOURCES CONTROL BOARD DIVISION OF WATER RIGHTS In the Matter of Wastewater Petition WW0095 San Bernardino Valley Municipal Water District ORDER APPROVING CHANGE IN POINT OF DISCHARGE, PLACE OF USE, PURPOSE OF USE, AND QUANTITY OF DISCHARGE SOURCE: Santa Ana River COUNTY: San Bernardino WHEREAS: 1. On September 16, 2016, the San Bernardino Valley Municipal Water District (Valley District) filed Wastewater Change Petition WW0095 with the State Water Resources Control Board (State Water Board), Division of Water Rights (Division), pursuant to Water Code section 1211. The purpose of the petition is for the Valley District to obtain the State Water Board’s authorization for the construction and operation of the Sterling Natural Resources Center (SNRC). The SNRC is to be jointly owned by the Valley District and the East Valley Water District (East District). The petition seeks to change the point of discharge, place of use, purpose of use and quantity of discharge of treated wastewater currently discharged to the Santa Ana River . 2. Water Code section 1211 requires the owner of a wastewater treatment plant to obtain approval from the State Water Board prior to making any change in the point of discharge, place of use, or purpose of use of treated wastewater where changes in the discharge or use of treated wastewater result in decreasing the flow in any portion of a watercourse. The Valley District has not yet obtained approval of any such changes under Water Code section 1211. 3. The East District service area currently generates wastewater at an approximate rate of six million gallons per day (mgd) for a total annual amount of approximately 6,725 acre-feet per year (afy). Pursuant to an agreement, the East District conveys wastewater generated within its service area to the City of San Bernardino (City) for treatment. The wastewater receives primary and secondary treatment at the San Bernardino Water Reclamation Plant (Plant) and tertiary treatment at the Rapid Infiltration and Extraction Facility (RIX). After treatment at the RIX, the treated wastewater is discharged to the Santa Ana River . 4. The SNRC is a wastewater treatment facility to be built within the City of Highland. The SNRC will have the capacity to treat up to 10 mgd of wastewater generated within the East District service area, which is located entirely wit hin the Valley District service area. The SNRC will use bio- membrane technology to produce disinfected tertiary recycled water (Title 22 quality water) for Municipal, Industrial, Domestic, Irrigation, Heat Contro l, Frost Protection, and Fish and Wildlife Preservation and Enhancement use. Once constructed, all wastewater generated within the East District service area will be delivered to the SNRC for treatment. Wastewater Petition WW0095 Page 2 5. Redirection of wastewater generated within the East District service area to the SNRC will reduce the amount of treated wastewater discharged from the RIX to the Santa Ana River by approximately 6 mgd. Once treated at the SNRC, the water will be conveyed primarily to City Creek. During peak flows, water will be conveyed to underground storage within existing basins currently operated by the City of Redlands (Redlands Basins). Currently, the San Bernardino basin area is managed by the Western-San Bernardino Watermaster pursuant to the Western Judgment (Western Municipal Water District of Riverside County v. East San Bernardino County Water District , Case No. 78426). When necessary, treated wastewater may also be se nt to the RIX for discharge to the Santa Ana River. Water delivered to City Creek, the Redlands Basins and the RIX will be metered. All extraction wells in the San Bernardino basin a rea are metered and the results are reported annually to the Western -San Bernardino Watermaster. 6. Discharge of treated wastewater from the RIX to the Santa Ana River is currently authorized by the Santa Ana Regional Water Quality Control Board under Order No. R8-2013-0032 and NPDES Permit No. CA8000304. 7. The Valley District is participating in the development of the Upper Santa Ana River Habitat Conservation Plan (HCP), a collaborative effort among the water resource agencies of the Santa Ana River watershed, in partnership with the U.S. Fish and Wildlife Service (Service), the California Department of Fish and Wildlife (Department), and several other government agencies and stakeholder organizations. The purpose of the Upper Santa Ana River HCP is to enable the water resource agencies to continue to provide and maintain a secure source of water for the residents and businesses in the watershed, and to conserve and maintain natural rivers and streams that provide habitat for a diversity of unique and rare species in the watershed. The protection of these habitats and the river systems they depend on also provides recreational opportunities for activities such as hiking, fishing, and wildlife viewing. The Upper Santa Ana River HCP will specify how species and their habitats will be protected and managed in the future and will provide the incidental take permits needed by the water resource agencies under the federal and state endangered species acts to maintain, operate, and improve their water resource infrastructure. 8. For the purposes of this Order, the State Water Board considers the following information as the Valley District’s existing point of discharge, place of use, and purpose of use of treated wastewater: a. The point of discharge is the following: City of San Bernardino Rapid Infiltration and Exfiltration Facility Discharge Point at North 1,838,060 feet and East 6,757,195 feet by California Coordinate System 1983, Zone 5, being within NE ¼ of SE ¼ of Section 36, T1S, R5W, SBB&M; b. There is no current place of use; and, c. There is no current purpose of use. 9. Summary of Protests On September 22, 2016, the Division issued a public notice of the petition in accordance with Water Code section 1703. The Division received the following protests: Protestant Basis of Protest Date of Protest Center for Biological Diversity Environmental September 27, 2016 City of Riverside Environmental, Prior Rights October 3, 2016 U.S. Fish and Wildlife/California Department of Fish and Wildlife Environmental October 10, 2016 Wastewater Petition WW0095 Page 3 City of San Bernardino Environmental, Contrary to Law, Prior Rights, Public Interest October 10, 2016 Anthony Serrano Environmental, Contrary to Law October 10, 2016 9.1 Center for Biological Diversity The protest submitted by the Center for Biological Diversity alleges that approval of the petition would result in an adverse environmental impact. The Center alleges that a reduction in surface flow in the Santa Ana River would adversely affect downstream environmental resources in the Santa Ana River, including instream habitat for the Santa Ana sucker (Catostomus santaanae) and water quality, including temperature. On November 10, 2016, the Center for Biological Diversity submitted an email to the Division withdrawing its protest. 9.2 City of Riverside The protest submitted by the City of Riverside alleges that approval of the petition would result in an adverse environmental impact and injury to adjudicated water rights in the Upper Santa Ana River watershed. The City of Riverside alleges that approval of the petition would result in an increase in Total Dissolved Solids (TDS) concentrations in its groundwater supply and the potential for reductions in native groundwater being considered as a diluent source due to future projects. The City of Riverside further alleges that approval of the petition would impair the ability for the City of San Bernardino to maintain the discharge of at least 16,000 afy of treated wastewater to the Riverside North basin, as specified in the Orange County Judgment (Orange County v. the City of Chino et al. Al., Orange County Superior Court No. 117628) and the Western Judgment. On October 27, 2016, the City of Riverside submitted a letter to the Division withdrawing its protest. 9.3 U.S. Fish and Wildlife Service and the California Department of Fish and Wildlife The joint protest submitted by the U.S. Fish and Wildlife Service (Service) and the California Department of Fish and Wildlife (Department) alleges that approval of the petition would result in an adverse environmental impact. The Service and the Department allege that the reduction in surface flow has the potential for harm to fish and wildlife resources and their Santa Ana River habitats. The protest recommended inclusion of the following conditions in any order approving the petition: Condition 1: Incidental take authorization, either through the execution of the Upper Santa Ana River HCP or through other mechanisms, for California Endangered Species Act and federal Endangered Species Act listed species shall be obtained by the Valley District before the SNRC diversion of 6 mgd of wastewater from the Plant and RIX, as proposed in the Petition, shall be permitted to occur. Condition 2: If incidental take authorization is obtained through a mechanism other than the Upper Santa Ana River HCP, the Valley District shall complete early consultation with the Service and the Department to facilitate the development of a Habitat Mitigation and Monitoring Plan (HMMP) that will address potential impacts to riparian habitat in the Santa Ana River and City Creek, and include specific thresholds and/or success criteria to protect fish and wildlife resources. The Service and the Department shall approve the HMMP prior to the SNRC commencing operation. Wastewater Petition WW0095 Page 4 By letter dated November 14, 2016, the Valley District responded to the protest and accepted the two conditions proposed by the Service and the Department, thereby resolving the protest. 9.4 City of San Bernardino The protest submitted by the City of San Bernardino (City) alleges that approval of the petition would be contrary to law, result in an adverse environmental impact, not serve the public interest, and result in injury to the City’s prior rights. The City’s protest is dismissed. A detailed discussion of the protest allegations and the reasons for dismissal are provided below. 9.4.1 Contrary to Law The City contends that approval of the petition would be contrary to law because it would frustrate the ability of the City to meet its discharge obligations set forth in its 1969 Agreement with the Valley District and related court rulings. The City currently discharges between 28,000 and 34,000 afy from the RIX into the Santa Ana River in order to meet its obligations to the Valley District under the 1969 Agreement designed to ensure the Valley District’s compliance with the terms of the Orange County Judgment and the Western Judgment. That Agreement requires that the City discharge at least 16,000 afy to provide flows and protect downstream rights. The SNRC project would reduce those discharges by approximately 6,700 afy, leaving discharges by the City from the RIX to range between 21,300 afy to 27,300 afy. These discharges are sufficient to meet the discharge requirements under the 1969 Agreement. Since the Valley District is bound to its commitments under the Western and Orange County judgments, and adherence by the Valley District to those commitments is a condition of this order, approval of the petition is not contrary to law. The City also claims that the petition is contrary to law on the basis that East District is not currently authorized by the San Bernardino County Local Agency Formation Commission (LAFCO) to provide wastewater treatment and disposal services. A court of competent jurisdiction will ultimately determine whether the actions of East District are contrary to law. As a condition of this order, the Valley District is required to obtain all necessary approvals from Federal, State and local agencies prior to construction and operation of the project. 9.4.2 Environmental Impact The City’s protest indicates that the City is currently litigating the adequacy of the Valley District’s final Environmental Impact Report (EIR) for the SNRC project. The litigation is based on the final EIR’s alleged failure to adequately disclose and analyze impacts including: 1) impacts to groundwater quality due to high levels of TDS anticipated in the SNRC’s effluent; 2) impacts to the Santa Ana River and Santa Ana Sucker from supplemental flow sources from groundwater wells to make up for reduced flows at the RIX facility; and 3) potential stranding of Santa Ana Sucker by diurnal fluctuations in discharges occurring due to reduced discharges to City Creek during the late evening and early morning hours. As a responsible agency under the California Environmental Quality Act (CEQA), the State Water Board is required to assume that the final EIR fully meets the requirements of CEQA. (Cal. Code Regs., tit. 14, § 15231, subd. (b).) The final EIR addresses these Wastewater Petition WW0095 Page 5 concerns with appropriate mitigation measures. A court of competent jurisdiction will ultimately determine the adequacy of the final EIR. This order incorporates the mitigation terms of the final EIR and any amendment thereof that may arise from subsequent litigation, and that are within the purview of the State Water Board. As a condition of this order, the Valley District is required to obtain all necessary approvals from Federal, State and local agencies. 9.4.3 Public Interest The City’s protest also alleges that the project is not in the public interest due to East District’s failure to follow the LAFCO process. A court of proper jurisdiction will ultimately determine whether East District’s actions are contrary to law. However, as stated in this order, the Valley District is required to obtain all necessary approvals from Federal, State, and local agencies prior to construction and operation of the project. The City also alleges that the petition is against the public interest due to fiscal impact. The City cites a third party estimate it commissioned, which concluded that the cost of constructing and operating the SNRC project will be approximately $300 million, twice the cost estimated by the Valley District’s analysis. The State Water Board’s authority to examine whether a change petition is in the public interest includes the authority to consider a proposed project’s financial viability. At the same time, market forces and public opinion will often prevent non-viable projects from being built. The State Water Board is reluctant to second-guess the financial viability of a project, such as the SNRC, that has already been vetted through the CEQA and other public processes. Potential fiscal impact should be weighed against the potential public interest benefits of the project. The SNRC proposes to recycle treated wastewater and to recharge local groundwater supplies for Municipal, Industrial, Domestic, Irrigation, Heat Control, Frost Protection and Fish and Wildlife Preservation and Enhancement uses. The State Water Board has a Policy for Water Quality Control for Recycled Water (Recycled Water Policy), originally adopted on February 3, 2009 and amended on January 22, 2013. The purpose of the Recycled Water Policy is to increase the use of recycled water from municipal wastewater sources. One of the goals for California, as stipulated in the Recycled Water Policy, is to increase the use of recycled water over 2002 levels by at least one million acre-feet per year by 2020, and by at least two million acre-feet per year by 2030. The Valley District’s project, as proposed in the petition, is consistent with the purpose of the Recycled Water Policy. On balance, the SNRC will help California meet the goals of the Recycled Water Policy. This is consistent with the public interest. There may be a disputed issue of fact between the City and Valley District as to whether the SNRC will cost more than projected. The material issue, however, is whether the SNRC costs too much, in light of its benefits, to justify being built. The City does not make this argument. There is not substantial evidence in the City’s protest, its January 4, 2017 response, or in light of the whole record to support such an allegation. Accordingly, there is no disputed issue of material fact as to the SNRC’s financial viability. 9.4.4 Injury to Prior Rights The City’s protest alleges that approval of the petition would impair the City’s superior rights to the treated wastewater it discharges from its RIX facility. The City cites Water Code section 1210, claiming that the City, as owner of the RIX treatment plant, holds the Wastewater Petition WW0095 Page 6 exclusive right to the treated wastewater as against anyone who has supplied the water discharged into the wastewater collection and treatment system. The petition does not assert a prior right to wastewater that has been treated by the City. The petition proposes to change the location of the point of discharge, place of use, and purpose of use of untreated wastewater of East District in furtherance of the SNRC project. Water Code section 1210 does not give the City a prior right to untreated wastewater generated by East District. Since 1984, the East District has provided untreated wastewater to the City under a pay as you go, optional, per dwelling service relationship. Although the East District was required to provide all of its raw sewage to the City under a Joint Powers Authority agreement prior to 1984, the JPA was amended in 1984 to make the discharge requirement optional. Rights would not attach under Water Code 1210 until the City actually receives and treats East District’s wastewater. The petition merely proposes to send East District’s untreated wastewater elsewhere per East District’s contract with the City under the JPA. Therefore, the petition does not impair the prior rights of the City. 9.5 Anthony Serrano The protest submitted by Anthony Serrano alleges that approval of the petition would be contrary to law and result in adverse environmental impacts. Subsequent correspondence from Mr. Serrano received after the close of the protest period included the apparent addition of a protest concern that approval of the petition would not serve the public interest. Mr. Serrano’s protest is dismissed. A detailed discussion of the protest allegations and the reasons for dismissal are provided below. 9.5.1 Contrary to Law The protest states that “[t]he original EIR was based on a CEQA Plus type that is not authorized under California CEQA law in Article 11, Types of EIR’s, Sections 15160- 15170. The type of EIR should have been an ‘EIR-EIS’ because the surrounding and affected areas are part of the Santa Ana River Mainstem Project authorized by the United States Congress in 1978 and managed by the U.S. Army Corps of Engineers (Corps). A December 1989 Local Cooperation Agreement by the USACE and Local Sponsors requires Federal approvals.” The Valley District contends in its answer that, in addition to meeting the EIR requirements of CEQA, the Valley District also complied with the separate environmental review obligations imposed by the State Water Board on applicants seeking funding from the State Revolving Fund (SRF). The Valley District argues that the SRF is subject to federal environmental regulations, and as such must comply with specific “CEQA -Plus” requirements established by the U.S. Environmental Protection Agency in its operating Agreement with the State Water Board for administering the SRF program. Therefore, the District contends that the City has complied with the CEQA-Plus requirements of the SRF funding process as well as CEQA. The Valley District’s answer further argues that the Local Cooperation Agreement (LCA) between the Corps and the Local Sponsors of the Mainstem Project contains no provision requiring federal action or approval. It contends that the Serrano protest does not provide a sufficient basis to conclude that the Mainstem Project provides federal National Environmental Policy Act (NEPA) jurisdiction over the SNRC. Wastewater Petition WW0095 Page 7 Mr. Serrano’s January 13, 2017 letter raised new arguments regarding CEQA compliance, both with respect to compliance with the requirements of Assembly Bill 52 (2013-2014 Reg. Sess.) and the holding in California Building Industry Association v. Bay Area Air Quality Management District (2015) 62 Cal. 4th 369. These arguments are untimely. There appears to be no evidence, in light of the whole record, of non- compliance with requirements of Assembly Bill 52 (2013-2014 Reg. Sess.), nor is there information indicating that the requirements of California Building Industry Association v. Bay Area Air Quality Management District (2015) 62 Cal. 4th 369 directly apply in this circumstance. Insofar as the adequacy of the final EIR is concerned, the State Water Board, as a responsible agency, is required to assume that the final EIR fully meets the requirements of CEQA. (Cal. Code Regs., tit. 14, § 15231, subd. (b).) A court of competent jurisdiction will ultimately determine whether the actions of the Valley District are contrary to law. As a condition of this order, the Valley District is required to obtain all necessary approvals from Federal, State, and local agencies prior to construction and operation of the project. 9.5.2 Environmental Impact Mr. Serrano’s protest further alleges that the petition will result in the reduction in flows in the Santa Ana River, resulting in adverse impacts to the Santa Ana Sucker. The final EIR addresses these concerns with appropriate mitigation measures. This order incorporates the mitigation terms of the final EIR or any amendment thereof that may arise from subsequent litigation, and that are within the purview of the State Water Board. As a further condition of this order, the Valley District is required to obtain all necessary approvals from Federal, State , and local agencies. 9.5.3 Public Interest Mr. Serrano’s statement of supporting facts, which the Division received on December 8, 2016, discusses project financing in the course of making the argument that the SNRC will have an adverse environmental impact. It also contains an allegation that “the proposed appropriation would not be within the board’s jurisdiction, would not best conserve the public interest or public trust uses, and is contrary to law.” In support of this allegation, Mr. Serrano submitted several articles discussing litigation between East District and other agencies and concludes that “[t]he Water Board can spend tax payer dollars on other water related projects while EVWD [East District] and SBVMWD [Valley District] work out their differences with local constituents who view the Sterling Natural Resources Center (waste water treatment facility) as a redundant and non- cost effective [sic] project because we already have a waste water treatment facility.” On February 2, 2017, Mr. Serrano submitted an email which appeared to argue that, because of additional costs associated with filing a wastewater change petition for the SNRC, the wastewater change petition should be dismissed. This email also asserts, without reference to evidence, that “we cannot afford the additional estimated $127M for the new SNRC.” Mr. Serrano did not raise these objections during the noticed protest period. It is unclear whether the protestant’s untimely, conclusory reference to “local constituents who view” the SNRC as not cost effective was even intended as an argument that the project is not in the public interest. The arguments presented in Mr. Serrano’s February 2, 2017 email are untimely. This Order considers a hypothetical public interest protest based on fiscal Wastewater Petition WW0095 Page 8 issues without conceding whether Mr. Serrano has actually filed a valid protest on this issue. The State Water Board’s authority to examine whether a change petition is in the public interest includes the authority to consider a proposed project’s financial viability. At the same time, market forces and public opinion will often prevent non-viable projects from being built. The State Water Board is reluctant to second-guess the financial viability of a project, such as the SNRC, that has already been vetted through CEQA and other public processes. Potential fiscal impact should be weighed against the potential public interest benefits of the project. For the reasons previously discussed in section 8.4.3 above, the Valley District’s project, as proposed in the petition, will help California meet the goals of the State Water Board’s Policy for Water Quality Control for Recycled Water and is in the public interest. This is a benefit above and beyond the SNRC’s wastewater treatment functions. There is no disputed issue of material fact as to the SNRC’s financial viability. For the reasons discussed above, it would not be appropriate for the State Water Board to apply its public interest authority in this case. 10. The State Water Board has determined that the petition for change in the point of discharge, place of use, purpose of use and quantity of discharge to a watercourse will not cause injury to any other lawful user of water. 11. Under the CEQA, the Valley District is the lead agency for preparation of environmental documentation for the SNRC project. On March 15, 2016, the Valley District certified the final EIR and approved and adopted the CEQA Findings, Statement of Overriding Considerations, and Mitigation Monitoring and Reporting Plan (MMRP) for the SNRC project (SCH No. 2015101058 On March 16, 2016, the Valley District issued a Notice of Determination (NOD). The State Water Board is a CEQA responsible agency for purposes of considering whether to approve the petition that will allow the Valley District to proceed with the proposed project. As a CEQA responsible agency, the State Water Board must consider the environmental documentation prepared by the lead agency and any other relevant evidence in the record, and must reach its own conclusions on whether and how to approve the project involved. (Cal. Code Regs., tit. 14, § 15096, subd. (a).) The State Water Board will issue an NOD within five days of the date of this order. 12. CEQA Impacts and Mitigation The State Water Board has reviewed and considered the final EIR in approving the petition. As a responsible agency, the State Water Board must mitigate or avoid to the extent feasible the identified significant impacts to resources within the State Water Board’s purview. In addition, the State Water Board must balance, as applicable, the economic, legal, social, technological, or other benefits, including region-wide or statewide environmental benefits, of a proposed project against its unavoidable environmental risks when determining whether to approve the project . (Cal. Code Regs., tit. 14, § 15093, subd. (a).) Listed below are the significant impacts identified in the EIR that fall within the State Water Board’s purview. These significant impacts result from the construction of the points of discharge and related infrastructure and by the diversion and use of the water that will result from operation of the project:  Adverse impacts to special-status plant and wildlife species, including indirect impacts through habitat modification, due to project construction and operation;  Adverse impacts to sensitive habitats (including riparian, wetlands, and/or other sensitive natural communities) within the project area due to project construction; Wastewater Petition WW0095 Page 9  Adverse impacts to water quality due to the violation of water quality standards or waste discharge requirements or otherwise substantially degrade water quality.  Adverse impacts to water quality due to the alteration of the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion, siltation or flooding on or offsite.  Adverse impacts to water quality due to the creation or contribution of runoff water which could exceed the capacity of stormwater drainage systems or provide additional sources of polluted runoff. The mitigation measures identified in the SNRC final EIR and recited below pertain to the protection of resources within the State Water Board’s purview, and have been incorporated into t he project. With the exception of impacts to the Santa Ana sucker through habitat modification, incorporation of these mitigation measures avoids the impacts or reduces them to a less than significant level. 12.1 Impacts to Special Status Species Construction and operation of the project could have a substantial adverse effect, either directly or through habitat modifications on plant and wildlife species identified as a candidate, sensitive, or special-status species in local or regional plans, policies, or regulations, or by the Department or Service. Mitigation Measures: BIO-1: Disturbance to Special-Status Plants. The following measures will reduce potential project-related impacts to special-status plant species that may occur adjacent to the project site within City Creek to a less than significant level. Potential project-related impacts may result from the construction of the pipeline extension and discharge structure within City Creek and the Redlands Basins. a. Prior to the start of construction within City Creek and/or the Redlands Basins, a focused botanical survey will be conducted to determine the presence/absence of any of the special-status species with a moderate or high potential to occur. The focused botanical survey will be conducted by a botanist or qualified biologist knowledgeable in the identification of local special-status plant species, and according to accepted protocol outlined by the California Native Plant Society and/or the Department. b. If a special status plant species is discovered in a project impact area, informal consultation with the Department and/or the Service will be required prior to the impact occurring to develop an appropriate avoidance strategy. Depending on the sensitivity of the species, relocation, site restoration, or other habitat improvement actions may be an acceptable option to avoid significant impacts, as determined through consultation with the Department and/or the Service. c. If impact avoidance of a state or federally-listed species is not feasible, the Valley District shall quantify the impacted acreage supporting state or federally-listed plant species within the construction area and estimated Wastewater Petition WW0095 Page 10 perennial flow area and prepare a Biological Assessment pursuant to Section 7 of the Endangered Species Act and Section 2081 of the Stat e Endangered Species Act. The Biological Assessment shall quantify compensation requirements for affected plants species. The Valley District shall implement the conservation measures and compensation requirements identified through consultation by USACE with both the Department and the Service. d. Permanent impacts to Riversidean alluvial fan sage scrub (RAFSS) habitat from construction and operation of the discharge including within the City Creek channel resulting from perennial flow shall require on-site replacement or off-site compensation at a ratio of at least 3:1 in consultation with the Department and the Service. Temporary impacts to RAFSS habitat would be mitigated at a ratio of at least 1:1 in consultation with the Department and the Service. BIO-2: Disturbance to Special-Status Wildlife. The following measures will reduce potential project-related impacts to special-status wildlife species that may occur within disturbed and native habitats, to a less than significant level. Potential project-related impacts may result from construction of the SNRC, construction of the discharge structures within City Creek and other discharge locations, and perennial discharges to City Creek or other discharge locations. a. Prior to the start of construction within City Creek or other discharge locations, Valley District shall conduct focused surveys within the project impact areas to determine if any state or federally-listed wildlife species (southwestern willow flycatcher, coastal California gnatcatcher, San Bernardino kangaroo rat, and least Bell’s vireo) are located within project impact areas. Focused surveys will be conducted by a qualified and/or permitted biologist, following approved survey protocol. Survey results will be forwarded to the Department and the Service. If state or federally- listed species are determined to occur on the project site with the potential to be impacted by the project, consultation with the Department and/or the Service will be required. b. If impact avoidance is not feasible, the Valley District shall quantify the impacted acreage supporting state or federally-listed wildlife species within the construction area and estimated perennial flow area and prepare a Biological Assessment pursuant to Section 7 of the Endangered Species Act and Section 2081 of the State Endangered Species Act. The Biological Assessment shall quantify compensation requirements for affected wildlife species. The Valley District shall implement the conservation measures and compensation requirements identified through consultation by the USACE with both the Department and the Service. c. Prior to the start of construction of the SNRC building and the recycled water pipeline along 6th Street, focused burrowing owl surveys shall be conducted to determine the presence/absence of burrowing owl adjacent to the project area. The focused burrowing owl survey must be conducted by a qualified biologist and following the survey guidelines included in the Department 2012 Staff Report on Burrowing Owl Wastewater Petition WW0095 Page 11 Mitigation. If burrowing owl is observed within undeveloped habitat within or immediately adjacent to the project impact area, avoidance/minimization measures would be required such as establishing a suitable buffer around the nest (typically 500-feet) and monitoring during construction, or delaying construction until after the nest is no longer active and the burrowing owls have left. However, if burrowing owl avoidance is infeasible, a qualified biologist shall implement a passive relocation program in accordance with the Example Components for Burrowing Owl Artificial Burrow and Exclusion Plans of the Department 2012 Staff Report on Burrowing Owl Mitigation. BIO-3: Disturbance to Santa Ana Sucker. The following measures will reduce potential project-related impacts to avoid, minimize, and compensate for impacts to Santa Ana sucker while contributing to the long-term conservation of the species. a. The diversion of wastewater flow to the new SNRC shall not occur until either the Upper Santa Ana River HCP has been fully executed by the Service and the Department or Valley District’s Santa Ana sucker HMMP has been approved by the Service and the Department. b. The Valley District will be a signatory to the Upper Santa Ana River HCP that will include the proposed project as a covered activity. The HCP will include a menu of projects to be implemented by the signatory agencies that will create habitat, restore habitat, and establish self-sustaining populations in the watershed. The HCP will be approved by the Department and the Service. c. In the event that the Upper Santa Ana River HCP is not approved in time to meet the project schedule, Valley District shall prepare and implement a HMMP that identifies habitat improvement actions, implementation methods, monitoring, and maintenance methods. The HMMP will consist of measures listed below to offset direct and indirect impacts to the Santa Ana sucker and its habitat resulting from the loss of 6 mgd of discharged water. The HMMP will be implemented by a contracted, qualified and permitted entity such as the Riverside-Corona Resource Conservation District in coordination with the Service and the Department. The HMMP will identify the goals and performance criteria of each conservation measure and will identify annual reporting and work forecasting requirements. The HMMP will be approved by the Service and the Department under their authority to enforce the federal and state Endangered Species Acts. The proposed diversion of 6 mgd from the RIX discharge will not occur until the HMMP has been approved by the Service and the Department. The HMMP will include the following elements: SAS-1: Microhabitat Enhancements. The HMMP will identify microhabitat enhancements within the upstream reach of the affected river segment using natural materials to increase scour and pool formation. This could include placement of large boulders and/or large woody debris to increase velocity of flow and gravel bar patches as well as deep pool refugia areas. Wastewater Petition WW0095 Page 12 SAS-2: Aquatic Predator Control Program. The HMMP will include an Aquatic Predator Control Program to be implemented within the upstream reach of the affected river segment that will target and remove exotic fish, amphibians, and reptiles immediately prior to the Santa Ana sucker spawning season. SAS-3: Exotic Weed Management Program. The HMMP will include an Exotic Weed Management Program targeting the removal of non-native species such as tamarisk, castor bean, tree of heaven, etc. The HMMP will include an annual maintenance and performance goal for non-native plant removal within the upper reach of the affected river segment. SAS-4: High Flow Pulse Events. The HMMP will identify means to create high flow pulse events as needed based on substrate conditions, up to 2 times per year. The high flow pulse events would be implemented through a cooperative agreement with the City of San Bernardino Municipal Water Department. SAS-5: Supplemental Water. Valley District will increase habitat availability in Rialto Channel during the summer months by providing cool supplemental water from nearby groundwater source to lower the water temperature in this tributary. Supplemental water will be added to the Rialto Channel when water temperatures reach 85 degrees. Supplemental water could be pumped groundwater or other water source. The discharge into the Rialto Channel will require a discharge permit from the Regional Water Quality Control Board. SAS-6: Upper Watershed Santa Ana Sucker Population Establishment. The HMMP will outline a plan for establishing a population of Santa Ana sucker in City Creek, or other suitable watershed tributary, in coordination with the Wildlife Agencies. The HMMP will identify measures to directly increase the number of Santa Ana sucker in the SAR population, increase the amount of suitable and occupied habitat in this watershed, and distribute the risk of a catastrophic event between multiple locations. The HMMP will identify the goals and success criteria of the establishment plan and will identify the amount of financial assistance to be provided by Valley District for the regionally- beneficial population establishment program. SAS-7: Monitoring. The HMMP will outline a monitoring program to collect hydrology data in the segment of river between the RIX discharge and Mission Boulevard. The data will include flow velocity and depth. Findings: The project as mitigated will limit adverse impacts to fisheries and, in particular, to Santa Ana sucker populations. Measures included in the HMMP and the HCP will act to substantially offset direct and indirect impacts to the Santa Ana sucker and its habitat resulting from the loss of 6 mgd of discharged water. Avoidance strategies will be applied in consultation with the Service and the Department to protect special status plant species. The project is unlikely to adversely affect candidate, sensitive, or special-status wildlife species Wastewater Petition WW0095 Page 13 other than the Santa Ana sucker, which shall be protected via conservation measures and compensation requirements identified through consultation by the Corps with both the Department and the Service. This order adopts the above mitigation measures (BIO-1, BIO-2, BIO-3, and SAS-1 through 7) and incorporates them as a condition of the order. These measures will be implemented as set forth in the MMRP and will commit the Valley District to implement these actions. Accordingly, the State Water Board finds that, with the inclusion of the above mitigation measures, direct and indirect impacts to plant and wildlife other than the Santa Ana Sucker by the project construction and operation would be reduced to a less than significant level. Changes with or alterations have been required in, or incorporated into, the project which avoid the significant environmental effect or reduce them to a less than significant level. Potentially adverse impacts to the Santa Ana Sucker will be carefully monitored and mitigated in accordance with the measures contained in the HMMP and HCP, including mitigation measures BIO-3 and SAS-1 through 7. Despite these measures, the final EIR identified that the remaining impact to the Santa Ana sucker through habitat modification would be significant and unavoidable. For the reasons stated here and in paragraph 14, and in light of the whole record, the State Water Board finds that specific economic, legal, social, technological, or other considerations, including in particular the water supply and Santa Ana sucker conservation benefits of the project, make further mitigation infeasible. 12.2 Impacts to Riparian Habitat Construction of the project could result in potential direct and indirect impacts to riparian habitat and other sensitive natural communities within the project area. Mitigation Measure: BIO-4: Construction Best Management Practices. The Contractor shall implement the following Best Management Practices during construction of the pipeline and discharge structure adjacent to and within City Creek to protect any adjacent sensitive natural communities that provide habitat for special-status species. a. The following water quality protection measures shall be implemented during construction:  Stationary engines, such as compressors, generators, light plants, etc., shall have drip pans beneath them to prevent any leakage from entering runoff or receiving waters.  All construction equipment shall be inspected for leaks and maintained regularly to avoid soil contamination. Leaks and smears of petroleum products will be wiped clean prior to use.  Any grout waste or spills will be cleaned up immediately and disposed of off-site.  Spill kits capable of containing hazardous spills will be stored on-site. Wastewater Petition WW0095 Page 14 b. To prevent inadvertent entrapment of common and special-status wildlife during construction, all excavated, steep-walled holes or trenches more than two-feet deep shall be covered with tarp, plywood or similar materials at the close of each working day to prevent animals from being trapped. Ramps may be constructed of earth fill or wooden planks within deep walled trenches to allow for animals to escape, if necessary. Before such holes or trenches are backfilled, they should be thoroughly inspected for trapped animals. If trapped wildlife are observed, escape ramps or structures shall be installed immediately to allow escape. All construction pipes, culverts, or similar structures that are stored at a construction site for one or more overnight periods should be thoroughly inspected for burrowing owls and nesting birds before the pipe is subsequently buried, capped, or otherwise used or moved. Findings: Construction of the pipeline and discharge structure adjacent to and within City Creek may impact sensitive habitats. Riparian habitat and fishery habitat are located adjacent to the construction site but with implementation of the above mitigation measure (BIO-4), impacts to these sensitive habitats will be minimized. During construction, best management practices shall be implemented to protect any adjacent sensitive natural communities that provide habitat for special-status species. Water quality protection measures will be implemented to prevent leakage of contaminants to soil and receiving waters. In addition, numerous measures will be taken to prevent inadvertent entrapment of common and special status wildlife during construction. This order adopts the above mitigation measure (BIO-4) and incorporates it as a condition of this order. This measure will be implemented as set forth in the MMRP and will commit the Valley District to implement these actions. Thus with the inclusion of the above mitigation measure, direct and indirect impacts to sensitive natural communities that provide habitat for special-status species by the project construction and operation would be reduced to a less than significant level. 12.3 Impacts to Water Quality The project could violate water quality standards or waste discharge requirements, or otherwise substantially degrade water quality. Mitigation Measures: HYDRO-1: The Valley District will prepare a Water Quality Management Plan (WQMP) to ensure that the SNRC facility design complies with stormwater management goals of the County of San Bernardino municipal separate storm sewer system (MS4) permit. HYDRO-2: Valley District shall prepare and implement a groundwater monitoring program that includes installation of an array of groundwater monitoring wells sufficient to characterize the effects of the discharge on local groundwater quality. If monitoring shows that beneficial uses of the groundwater may become adversely affected by the discharge, the monitoring program would require either modifications to treatment, modify the well screened area by sealing the affected portion of the screen in the impacted groundwater bearing zone, or compensation for adversely affected groundwater wells through replacement of the affected well or through providing replacement water. Wastewater Petition WW0095 Page 15 Findings: Development of the SNRC has the potential to result in increased impervious surfaces that would increase stormwater runoff if uncontrolled. The facility would be subject to the County of San Bernardino MS4 permit that requires new development to prepare a Water Quality Management Plan (WQMP). Implementation of the WQMP would reduce potential impacts to runoff water quality. Discharge to City Creek or the Redlands Basin could result in the treated effluent infiltrating into the groundwater basin, thereby affecting groundwater quality. To ensure that groundwater quality is not adversely affected, HYDRO-2 would require that the Valley District install a groundwater monitoring network to monitor the discharge’s effect on local groundwater quality. Any adverse impact to groundwater quality would be mitigated through treatment modifications or compensation. This order adopts the above mitigation measures (HYDRO-1 and HYDRO-2) and incorporates them as a condition of this order. These measures will be implemented as set forth in the MMRP and will commit the Valley District to implement these actions. With the inclusion of the above mitigation measures, the potential for the discharge to adversely affect surface and groundwater quality would be reduced to a less than significant level. 12.4 Impacts to Site Drainage The project could substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion, siltation or flooding on or offsite. Mitigation Measures: HYDRO-3: The City Creek discharge structures shall be designed with velocity dissipation features as needed to prevent scour at the point of discharge. The design and location of these discharge facilities would be approved by the San Bernardino County Flood Control District (SBCFCD) and USACE to ensure that they do not impede high flow capacity. HYDRO-4: Valley District shall prepare a City Creek Channel Vegetation Management Plan in coordination with SBCFCD and Department that outlines vegetation management measures to minimize impacts to the flood control function within City Creek. The plan will include periodic vegetation trimming to remove large trees that could impact flood control facilities downstream. The plan will outline schedule, permitting and reportin g requirements. Findings: Due to long-term operation of the City Creek discharge facility and the changing environment, the potential exists that the discharge may cause erosional impacts if left unmaintained or unsupervised. The above mitigation measure (HYDRO-3) is designed to dissipate water velocity as needed to prevent scour at the point of discharge. T he Vegetation Management Plan (HYDRO-4) will ensure that vegetation in and around City Creek is managed so as to minimize impacts to the flood control function within City Creek. This order adopts the above mitigation measures (HYDRO-3 and HYDRO-4) and incorporates them as a condition of this order. These measures will be implemented as set forth in the MMRP and will commit the Valley District to implement these actions. With the inclusion of the above mitigation measures, the potential for the discharge to induce erosion and sedimentation in downstream waters would be reduced to a less than significant level. Wastewater Petition WW0095 Page 16 12.5 Impacts to Stormwater Runoff The project would create or contribute runoff water which could exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff. Mitigation Measure: HYDRO-5: The Valley District shall prepare an Operational Manual for the discharge to City Creek that identifies when discharges would be conveyed to other discharge basins to avoid contributing to flood flows in City Creek during peak flow periods. Findings: Discharge to City Creek during high flow events has the potential to contribute to flood flows. During these high flow events, the treatment plant could discharge to other discharge locations to avoid contributing flow to the creek that could result in do wnstream flooding or contribute to polluted runoff during peak flow periods. The above mitigation measure (HYDRO-5) ensures that operational procedures are in place prior to project implementation to allow peak flows to be routed to other discharge basins to avoid the contribution of the project to flood flows. This order adopts the above mitigation measure (HYDRO-5) and incorporates it as a condition of this order. This measure will be implemented as set forth in the MMRP and will commit the Valley District to implement this action. With the inclusion of the above mitigation measure, the potential for the project to create excessive runoff water that would exceed existin g stormwater drainage systems or create additional sources of polluted runoff to City Creek would be reduced to a less than significant level. 13. The State Water Board prepared a MMRP which includes the mitigation measures described above in Paragraph 11 and specifies implementation, monitoring, and reporting on the mitigation measures. Compliance with these measures is an enforceable term within this order. Adoption of mitigation measures described in Paragraph 11 of this order avoid or significantly minimize all of the significant impacts under the State Water Board’s purview to a less than significant level except for impacts to the Santa Ana sucker. While the proposed project may still result in significant and unavoidable impacts to the aquatic habitat of the Santa Ana Sucker, the State Water Board has determined that the significant impact to the Santa Ana sucker is acceptable due to the overriding considerations discussed in Paragraph 14 below. 14. Statement of Overriding Considerations. 14.1 Impacts of the Project The impacts that are within the State Water Board’s purview are described in Paragraph 11. 14.2 Benefits of the Project Consistent with the State Water Board’s recycled water policy, the project will provide numerous benefits. By recharging groundwater, the project will serve both existing and future water demands and increase local availability and use of recycled water. It will also help to meet regional water supply needs, while providing greater flexibility in the management of water supplies. The project includes a mitigation plan that adopts a comprehensive, habitat - focused approach that is intended to address specific factors that currently limit the health and abundance of the Santa Ana sucker. By providing supplemental water in the Rialto Channel, Wastewater Petition WW0095 Page 17 when needed, the plan will increase the availability of suitable habitat for the existing sucker population during summer months, thereby improving the long-term resiliency of the sucker population in the Santa Ana River. This will also establish a distinct sucker population in a suitable upper watershed tributary to the Santa Ana River. 14.3 Statement of Overriding Considerations The State Water Board finds and declares that, on balance, the economic, legal, social, technological, and other benefits, including water supply, wastewater treatment, and Santa Ana sucker conservation and resiliency benefits outweigh the significant and unavoidable impacts to the Santa Ana sucker through habitat modification. 15. Regardless of any obligation the Valley District or the State Water Board may have under CEQA, the State Water Board has an independent obligation to consider the effect of the change on public trust resources and to protect those resources where feasible, and to balance any adverse public trust effects against the benefits of the project. (National Audubon Society v. Superior Court (1983) 33 Cal.3d 419 [189 Cal.Rptr. 346].) Staff evaluated potential effects to public trust resources in the April 25, 2017 memorandum titled Staff Evaluation of Potential Effect to Public Trust Resources Caused by Approval of WW0095 for reduction in discharge under the petition, including specific consideration of effects related to special-status plants or wildlife, instream flow, water quality and riparian habitat. Staff concluded the petition will not result in adverse effects to special-status plants or wildlife, water quality or riparian habitat. The Deputy Director has reviewed staff’s conclusions and recommendations, and concurs. Potentially adverse effects to public trust resources from changes in stream flow that may interfere with Santa Ana sucker migration in the Santa Ana River may occur from the reduction in discharge and use of water as described in the change, but these effects are adequately addressed by the mitigation measures and protest dismissal requirements incorporated into this Order. With the inclusion of protest dismissal terms, standard terms and conditions, and mitigation measures evaluated in Paragraph 11 of this Order, the change will not cause an unreasonable effect to public trust resources and approval of the project is not contrary to the State Water Board’s public trust responsibilities. 16. Pursuant to Resolution 2012-0029, the State Water Board has delegated the authority to administer the State Water Board’s water rights program to the Deputy Director for Water Rights . The Deputy Director for Water Rights has redelegated the authority. ORDER NOW, THEREFORE, IT IS ORDERED THAT: 1. The protests of the City of San Bernardino and Anthony Serrano are dismissed. 2. The request to change the point of discharge is approved. The points of discharge shall be: a. City Creek at California Coordinate System, NAD 83, Zone 5, North 1,866,229 feet and East 6,805,246 feet, being within the NE¼ of Section 4, T1S, R3W, SBB&M; and b. City of San Bernardino Rapid Infiltration and Exfiltration Facility Discharge Point at North 1,838,060 feet and East 6,757,195 feet by California Coordinate System 1983, Zone 5, being within NE ¼ of SE ¼ of Section 36, T1S, R5W, SBB&M. Wastewater Petition WW0095 Page 18 3. The request to change the place of use is approved. The place of use for treated wastewater produced by the SNRC is within the San Bernardino Valley Municipal Water District service area and portions of the Santa Ana River and City Creek, as shown on map dated November 28, 2016 filed with the State Water Board. 4. The request to change the purpose of use is approved. The purposes of use for treated wastewater produced by the SNRC are Municipal, Industrial, Domestic, Irrigation, Heat Control, Frost Protection and Fish and Wildlife Preservation and Enhancement. 5. The quantity of discharge of treated wastewater from the RIX to the Santa Ana River may be reduced by an average monthly rate of up to 6.0 mgd, for a total reduction of 6,725 afy, from January 1 to December 31 of each year. 6. The place of storage for treated wastewater is the Bunker Hill Subbasin within the Upper Santa Ana Valley Groundwater Basin as shown on map dated November 28, 2016 filed with the State Water Board. 7. The CEQA findings specified in paragraphs 11-14 above are hereby adopted. 8. This Order incorporates the mitigation terms of the final EIR specified in paragraph 11 above and in the Attachment 1. The Valley District shall implement the measures to mitigate significant impacts to biological resources and conduct the required reporting and monitoring of those measures. The State Water Board reserves jurisdiction to require any reasonable amendments to these measures and requirements to ensure that they will accomplish the stated goal or as appropriate to take into account any modifications to the final EIR as a result of litigation or otherwise. 9. The Valley District shall operate the project consistent with its obligations under the judgments in Western Municipal Water District of Riverside County v. East San Bernardino County Water Dist rict, Case No. 78426, and Orange County v. the City of Chino et al. Al., Orange County Superior Court No. 117628. 10. The Valley District shall obtain all necessary federal (including Clean Water Act section 404), state and local agency permits and approvals required by other agencies prior to construction and operation of the project. Copies of such permits and approvals shall be forwarded to the Deputy Director for Water Rights. 11. The Valley District is responsible for compliance with any applicable waste discharge or water recycling requirements issued by the Regional Water Board or the State Water Board. STATE WATER RESOURCES CONTROL BOARD ORIGINAL SIGNED BY: JOHN O’HAGAN FOR: Leslie F. Grober, Deputy Director Division of Water Rights Dated: APR 28 2017 Attachment 1 Mitigation Monitoring and Reporting Plan for WW0095 MITIGATION MONITORING AND REPORTING PLAN Wastewater Change Petition WW0095 San Bernardino Valley Municipal Water District This Mitigation Monitoring and Reporting Plan (MMRP) has been prepared in conformance with the California Environmental Quality Act (CEQA) (Public Resources Code section 21081.6). The MMRP has been developed based on the information and mitigation measures contained in the Environmental Impact Report (EIR) for the Sterling Natural Resource Center (SNRC) (SCH No. 2015101058) which includes the project described in wastewater change petition WW0095. The MMRP lists mitigation measures recommended in the EIR for the proposed project and specifies implementation and monitoring responsibilities. Pursuant to Public Resources Code section 21081.6, subdivision (b), each of the mitigation measures identified in the MMRP will be included as enforceable terms in any order authorizing construction, change the point of discharge, place of use, purpose of use and quantity of discharge of treated wastewater currently discharged pursuant to wastewater change petition WW0095. Generally, the State Water Resources Control Board (State Water Board), Division of Water Rights (Division) Permitting Section staff will monitor mitigation measures requiring pre-construction actions or submittals. Construction and post construction mitigation measures will be reported to Division staff as specified in the attached matrix. Implementation of mitigation measures is the sole responsibility of the San Bernardino Valley Municipal Water District (Valley District). Compliance with mitigation measures will be assessed through the Division’s routine compliance monitoring activities. Non-compliance with mitigation measures may be addressed through the Division’s ongoing enforcement program on an as needed basis. All documents and other information that constitute the public record for this project shall be maintained by the Division and shall be available for public review at the following address: State Water Resources Control Board Division of Water Rights, 2nd Floor 1001 I Street Sacramento, CA 95814 PROJECT DESCRIPTION: On September 16, 2016, the Valley District filed Wastewater Change Petition WW0095 with the State Water Board pursuant to Water Code section 1211. The purpose of the petition is for the Valley District to obtain the State Water Board’s authorization for the construction and operation of the SNRC. The SNRC is to be jointly owned by the Valley District and the East Valley Water District (East Dis trict). The petition seeks to change the point of discharge, place of use, purpose of use and quantity of discharge of treated wastewater currently discharged to the Santa Ana River. Water Code section 1211 requires the owner of a wastewater treatment plant to obtain approval from the State Water Board prior to making any change in the point of discharge, place of use, or purpose of use of treated wastewater where changes in the discharge or use of treated wastewater result in decreasing the flow in any portion of a watercourse. The East District service area currently generates wastewater at an approximate rate of six million gallons per day (mgd) for a total annual amount of approximately 6,725 acre -feet per year (afy). Pursuant to an agreement, th e East District conveys wastewater generated within its service area to the City of San Bernardino for treatment. The wastewater receives primary and secondary treatment at the San Bernardino Water Reclamation Plant and tertiary treatment at the Rapid Inf iltration and Extraction Facility (RIX). After treatment at the RIX, the treated wastewater is discharged to the Santa Ana River. The SNRC is a wastewater treatment facility to be built within the City of Highland. The SNRC will have the capacity to treat up to 10 mgd of wastewater generated within the East District service area, which is located entirely within the Valley District service area. The SNRC will use bio -membrane technology to produce disinfected tertiary recycled water (Title 22 quality wa ter) for Municipal, Industrial, Domestic, Irrigation, Heat Control, Frost Protection, and Fish and Wildlife Preservation and Enhancement use. Once constructed, all wastewater generated within the East District service area will be delivered to the SNRC fo r treatment. Redirection of wastewater generated within the East District service area to the SNRC will reduce the amount of treated wastewater discharged from the RIX to the Santa Ana River by approximately 6 mgd. Once treated at the SNRC, the water will be conveyed primarily to City Creek. During peak flows, water will be conveyed to underground storage within existing basins currently operated by the City of Redlands (Redlands Basins). When necessary, treated wastewater may also be sent to the RIX f or discharge to the Santa Ana River. Water delivered into spreading grounds will be metered. All extraction wells in the San Bernardino basin area are metered and the results are reported annually to the Western-San Bernardino Watermaster. Discharge of treated wastewater from the RIX to the Santa Ana River is currently authorized by the Santa Ana Regional Water Quality Control Board under Order No. R8 -2013-0032 and NPDES Permit No. CA8000304. In accordance with the CEQA, the Valley District, as lead age ncy, completed a Draft Environmental Impact Report (EIR; State Clearinghouse No. 2015101058) in December 2015 and issued a Notice of Determination for the Final EIR on March 15, 2016. The State Water Board, acting as a responsible agency under the CEQA, has reviewed the Final EIR and will issue a Notice of Determination within five days of the date that the petition is approved. Mitigation Monitoring and Reporting Plan WW0095 Page 1 of 8 Impact: Direct or indirect modifications of habitat for special-status plan and wildlife species and their habitat due to project construction Mitigation Measures: BIO-1: Disturbance to Special-Status Plants. The following measures will reduce potential project-related impacts to special-status plant species that may occur adjacent to the project site within City Creek to a less than significant level. Potential project-related impacts may result from the construction of the pipeline extension and discharge structure within City Creek and the Redlands Basins. a) Prior to the start of construction within City Creek and/or the Redlands Basins, a focused botanical survey will be conducted t o determine the presence/absence of any of the special-status species with a moderate or high potential to occur. The focused botanical survey will be conducted by a botanist or qualified biologist knowledgeable in the identification of local special-status plant species, and according to accepted protocol outlined by the California Native Plant Society and/or the California Department of Fish and Wildlife (Department). b) If a special status plant species is discovered in a project impact area, informal consultation with the Department and/or the U.S. Fish and Wildlife Service (Service) will be required prior to the impact occurring to develop an appropriate avoidance strategy. Depending on the sensitivity of the species, relocation, site restoration, or other habitat improvement actions may be an acceptable option to avoid significant impacts, as determined through consultation with the Department and/or the Service. c) If impact avoidance of a state or federally-listed species is not feasible, the San Bernardino Valley Municipal Water District (Valley District) shall quantify the impacted acreage supporting state or federally-listed plant species within the construction area and estimated perennial flow area and prepare a Biological Assessment pursuant to Section 7 of the Endangered Species Act and Section 2081 of the State Endangered Species Act. The Biological Assessment shall quantify compensation requirements for affected plants species. The Valley District shall implement the conservation measures and compensation requirements identified through consultation by the U.S. Army Corps of Engineers (Corps) with both the Department and the Service. d) Permanent impacts to Riversidian Alluvial Fan Sage Scrub (RAFSS) habitat from construction and operation of the discharge including within the City Creek channel resulting from perennial flow shall require on-site replacement or off-site compensation at a ratio of at least 3:1 in consultation with the Department and the Service. Temporary impacts to RAFSS habitat would be mitigated at a ratio of at least 1:1 in consultation with the Department and the Service. Level of Impact Before and After Mitigation: Before: Potentially Significant After: Less than Significant with mitigation incorporation Implementation, Monitoring, and Implementation Action:  A qualified biologist will conduct pre-construction botanical survey as defined.  Prepare documentation to record results of the pre-construction survey.  If a special status plant species is detected, then implement measures as appropriate. Mitigation Monitoring and Reporting Plan WW0095 Page 2 of 8  If impact avoidance is not feasible, then implement measures as appropriate. Prepare Biological Assessment as suggested.  Perform construction site inspections to ensure measures are implemented properly. An inspection log will be maintained to document results of site inspections.  Retain copies of pre-construction survey documentation and any subsequent reports in the project file. Consult with Service and Department to prepare and implement on-site or off-site compensation of 3:1 or 1:1 and mitigate impacts to RAFSS habitat. Timing in Reporting on Implementation and Monitoring: Prior to and during project construction by the Valley District Impact: Direct or indirect modifications of habitat for endangered or threatened fish species due to construction at City Creek Mitigation Measures: BIO-2: Disturbance to Special-Status Wildlife. The following measures will reduce potential project-related impacts to special-status wildlife species that may occur within disturbed and native habitats, to a less than significant level. Potential project-related impacts may result from construction of the Sterling Natural Resource Center (SNRC), construction of the discharge structures within City Creek and other discharge locations, and perennial discharges to City Creek or other discharge locations. a) Prior to the start of construction within City Creek or other discharge locations, Valley District shall conduct focused surveys within the project impact areas to determine if any state or federally-listed wildlife species (southwestern willow flycatcher, coastal California gnatcatcher, San Bernardino kangaroo rat, and least Bell’s vireo) are located within project impact areas. Focused surveys will be conducted by a qualified and/or permitted biologist, following approved survey protocol. Survey results will be forwarded to the Department and the Service. If state or federally-listed species are determined to occur on the project site with the potential to be impacted by the project, consultation with the Department and/or the Service will be required. b) If impact avoidance is not feasible, the Valley District shall quantify the impacted acreage supporting state or federally-listed wildlife species within the construction area and estimated perennial flow area and prepare a Biological Assessment pursuant to Section 7 of the Endangered Species Act and Section 2081 of the State Endangered Species Act. The Biological Assessment shall quantify compensation requirements for affected wildlife species. Valley District shall implement the conservation measures and compensation requirements identified through consultation by the Corps with both the Department and the Service. c) Prior to the start of construction of the SNRC building and the recycled water pipeline along 6th Street, focused burrowing owl surveys shall be conducted to determine the presence/absence of burrowing owl adjacent to the project area. The focused burrowing owl survey must be conducted by a qualified biologist and following the survey guidelines included in the Department 2012 Staff Report on Burrowing Owl Mitigation. If burrowing owl is observed within Mitigation Monitoring and Reporting Plan WW0095 Page 3 of 8 undeveloped habitat within or immediately adjacent to the project impact area, avoidance/minimization measures would be required such as establishing a suitable buffer around the nest (typically 500- feet) and monitoring during construction, or delaying construction until after the nest is no longer active and the burrowing owls have left. However, if burrowing owl avoidance is infeasible, a qualified biologist shall implement a passive relocation program in accordance with the Example Components for Burrowing Owl Artificial Burrow and Exclusion Plans of the Department 2012 Staff Report on Burrowing Owl Mitigation. Level of Impact Before and After Mitigation: Before: Potentially Significant After: Less than Significant with mitigation incorporation Implementation, Monitoring, and Implementation Action:  Include mitigation measure in construction contractor specifications.  A qualified biologist will conduct pre-construction surveys for state or federally-listed wildlife species (southwestern willow flycatcher, coastal California gnatcatcher, San Bernardino kangaroo rat, and least Bell’s vireo) as defined.  A qualified biologist will conduct pre-construction survey for burrowing owl as defined.  A qualified biologist will conduct pre-construction site clearing survey for project impact area of natural habitat within City Creek.  Prepare documentation to record results of all of the pre-construction survey.  If a state or federally-listed species is detected, then implement measures as appropriate. If impact avoidance is not feasible, implement measures as appropriate. Prepare Biological assessment if required.  If a burrowing owl is detected, then implement measures as appropriate. If burrowing owl avoidance is not feasible, implement measures as appropriate.  Perform construction site inspections to ensure measures are implemented properly. An inspection log will be maintained to document results of site inspections.  Retain copies of both of the pre-construction surveys documentation in the project file. Timing in Reporting on Implementation and Monitoring: Within 60 days after construction is completed by the Valley District Impact: Adverse impacts to sensitive habitats (including riparian, wetlands, and/or other sensitive natural communities) within the project area due to project construction. Mitigation Measures: BIO-3: Disturbance to Santa Ana Sucker. The following measures will reduce potential project-related impacts to avoid, minimize, and compensate for impacts to Santa Ana sucker while contributing to the long-term conservation of the species. a) The diversion of wastewater flow to the new SNRC shall not occur until either the Upper Santa Ana River Habitat Conservation Plan (HCP) has been fully executed by the Service and the Department or Valley District’s Santa Ana sucker Habitat Monitoring and Management Plan Mitigation Monitoring and Reporting Plan WW0095 Page 4 of 8 (HMMP) has been approved by the Service and the Department. b) The Valley District will be a signatory to the Upper Santa Ana River HCP that will include the proposed project as a covered activity. The HCP will include a menu of projects to be implemented by the signatory agencies that will create habitat, restore habitat, and establish self- sustaining populations in the watershed. The HCP will be approved by the Department and the Service. c) In the event that the Upper Santa Ana River HCP is not approved in time to meet the project schedule, Valley District shall prepare and implement a HMMP that identifies habitat improvement actions, implementation methods, monitoring, and maintenance methods. The HMMP will consist of measures listed below to offset direct and indirect impacts to the Santa Ana sucker and its habitat resulting from the loss of 6 million gallons per day of discharged water. The HMMP will be implemented by a contracted, qualified and permitted entity such as the Riverside-Corona Resource Conservation District in coordination with the Service and the Department. The HMMP will identify the goals and performance criteria of each conservation measure and will identify annual reporting and work forecasting requirements. The HMMP will be approved by the Service and the Department under their authority to enforce the federal and state Endangered Species Acts. The proposed diversion of 6 million gallons per day from the Rapid Infiltration and Exfiltration Facility discharge will not occur until the HMMP has been approved by the Service and the Department. The HMMP will include the following elements.  SAS-1: Microhabitat Enhancements. The HMMP will identify microhabitat enhancements within the upstream reach of the affected river segment using natural materials to increase scour and pool formation. This could include placement of large boulders and/or large woody debris to increase velocity of flow and gravel bar patches as well as deep pool refugia areas.  SAS-2: Aquatic Predator Control Program. The HMMP will include an Aquatic Predator Control Program to be implemented within the upstream reach of the affected river segment that will target and remove exotic fish, amphibians, and reptiles immediately prior to the Santa Ana sucker spawning season.  SAS-3: Exotic Weed Management Program. The HMMP will include an Exotic Weed Management Program targeting the removal of non-native species such as tamarisk, castor bean, tree of heaven, etc. The HMMP will include an annual maintenance and performance goal for non-native plant removal within the upper reach of the affected river segment.  SAS-4: High Flow Pulse Events. The HMMP will identify means to create high flow pulse events as needed based on substrate conditions, up to 2 times per year. The high flow pulse events would be implemented through a cooperative agreement with the City of San Bernardino Municipal Water Department.  SAS-5: Supplemental Water. Valley District will increase habitat availability in Rialto Channel during the summer months by providing cool supplemental water from nearby groundwater source to lower the water temperature in this tributary. Supplemental water Mitigation Monitoring and Reporting Plan WW0095 Page 5 of 8 will be added to the Rialto Channel when water temperatures reach 85 degrees. Supplemental water could be pumped groundwater or other water source. The discharge into the Rialto Channel will require a discharge permit from the Regional Water Quality Control Board.  SAS-6: Upper Watershed Santa Ana Sucker Population Establishment. The HMMP will outline a plan for establishing a population of Santa Ana sucker in City Creek, or other suitable watershed tributary, in coordination with the Service and the Department. The HMMP will identify measures to directly increase the number of Santa Ana sucker in the Santa Ana River population, increase the amount of suitable and occupied habitat in this watershed, and distribute the risk of a catastrophic event between multiple locations. The HMMP will identify the goals and success criteria of the establishment plan and will identify the amount of financial assistance to be provided by Valley District for the regionally-beneficial population establishment program.  SAS-7: Monitoring. The HMMP will outline a monitoring program to collect hydrology data in the segment of river between the Rapid Infiltration and Exfiltration Facility discharge and Mission Boulevard. The data will include flow velocity and depth. Level of Impact Before and After Mitigation: Before: Significant and unavoidable After: Significant and unavoidable with mitigation incorporation Implementation, Monitoring, and Implementation Action:  Verify that the Upper Santa Ana River HCP is executed and approved before project construction begins.  If Upper Santa Ana River HCP is not approved in time, prepare and implement Santa Ana sucker HMMP.  A contracted and qualified entity will implement the HMMP.  Verify that the HMMP has been prepared and approved by the applicable entities, including the Service and the Department.  Verify that the agreement for the high pulse flow events has been executed with the City of San Bernardino Municipal Water Department.  Verify that the Rialto Channel discharge permit has been prepared and approved by the Regional Water Quality Control Board.  Include mitigation measures SAS-1 through SAS-7 in construction contractor specifications.  Perform construction site inspections to ensure measures are implemented properly and the construction contractor is complying with construction limitations. An inspection log will be maintained to document results of site inspections.  Retain copies of Upper Santa Ana River HCP or Santa Ana sucker HMMP documentation and construction site inspection logs in the project file. Timing in Reporting on Implementation and Monitoring: Prior to and during construction by the Valley District. Mitigation Monitoring and Reporting Plan WW0095 Page 6 of 8 Impact: Adverse impacts due to construction of the project that could result in the interference with the movement of any native resident or migratory fish or wildlife species. Mitigation Measure: BIO-4: Construction Best Management Practices. The Contractor shall implement the following Best Management Practices during construction of the pipeline and discharge structure adjacent to and within City Creek to protect any adjacent sensitive natural communities that provide habitat for special-status species. a) The following water quality protection measures shall be implemented during construction:  Stationary engines, such as compressors, generators, light plants, etc., shall have drip pans beneath them to prevent any leakage from entering runoff or receiving waters.  All construction equipment shall be inspected for leaks and maintained regularly to avoid soil contamination. Leaks and smears of petroleum products will be wiped clean prior to use.  Any grout waste or spills will be cleaned up immediately and disposed of off-site.  Spill kits capable of containing hazardous spills will be stored on- site. b) To prevent inadvertent entrapment of common and special-status wildlife during construction, all excavated, steep-walled holes or trenches more than two-feet deep shall be covered with tarp, plywood or similar materials at the close of each working day to prevent animals from being trapped. Ramps may be constructed of earth fill or wooden planks within deep walled trenches to allow for animals to escape, if necessary. Before such holes or trenches are backfilled, they should be thoroughly inspected for trapped animals. If trapped wildlife are observed, escape ramps or structures shall be installed immediately to allow escape. All construction pipes, culverts, or similar structures that are stored at a construction site for one or more overnight periods should be thoroughly inspected for burrowing owls and nesting birds before the pipe is subsequently buried, capped, or otherwise used or moved. Level of Impact Before and After Mitigation: Before: Potentially Significant After: Less than Significant with mitigation incorporation Implementation, Monitoring, and Implementation Action:  Include mitigation measure in construction contractor specifications.  Conduct evaluation of project area for trapped animals during construction. If trapped animals are found within construction sites, then implement measures as defined.  Perform construction site inspections to ensure mitigation measures are implemented properly.  Retain copies of survey documentation and construction site inspection logs in the project file Timing in Reporting on Implementation and Monitoring: Prior to and during construction by the Valley District Mitigation Monitoring and Reporting Plan WW0095 Page 7 of 8 Impact: Adverse impacts to water quality due to potential violation of water quality standards or waste discharge requirements or otherwise substantially degrading water quality Mitigation Measures: HYDRO-1: The Valley District will prepare a Water Quality Management Plan (WQMP) to ensure that the SNRC facility design complies with stormwater management goals of the County of San Bernardino municipal separate storm sewer system (MS4) permit. HYDRO-2: Valley District shall prepare and implement a groundwater monitoring program that includes installation of an array of groundwater monitoring wells sufficient to characterize the effects of the discharge on local groundwater quality. If monitoring shows that beneficial uses of the groundwater may become adversely affected by the discharge, the monitoring program would require either modifications to treatment, modify the well screened area by sealing the affected portion of the screen in the impacted groundwater bearing zone, or compensation for adversely affected groundwater wells through replacement of the affected well or through providing replacement water. Level if Impact Before and After Mitigation: Before: Potentially Significant After: Less than Significant with mitigation incorporation Implementation, Monitoring, and Implementation Action:  Prepare the WQMP prior to project implementation.  Retain copies of the plan in the project file.  Retain copies of sampling and analyses conducted in accordance with the WQMP in the project file.  Conduct site inspections in accordance with the WQMP to ensure proper implementation of stormwater management goals.  Prepare the groundwater monitoring program prior to project implementation.  Retain copies of the program report in the project file.  During plan implementation, retain copies of the monitoring reports in the project file.  Implement suggested mitigation measure if monitoring shows groundwater is adversely affected. Timing in Reporting on Implementation and Monitoring: Prior to and during construction by the Valley District Impact: Adverse impacts to water quality due to the alteration of the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion, siltation or flooding on or offsite Mitigation Measures: HYDRO-3: The City Creek discharge structures shall be designed with velocity dissipation features as needed to prevent scour at the point of discharge. The design and location of these discharge facilities would be approved by the San Bernardino County Flood Control District (SBCFCD) and the Corps to ensure that they do not impede high flow capacity. HYDRO-4: Valley District shall prepare a City Creek Channel Vegetation Management Plan in coordination with SBCFCD and Department that outlines vegetation management measures to minimize impacts to the flood control function within City Creek. The plan will include periodic vegetation trimming to remove large trees that could impact flood control facilities Mitigation Monitoring and Reporting Plan WW0095 Page 8 of 8 downstream. The plan will outline schedule, permitting and reporting requirements. Level if Impact Before and After Mitigation: Before: Potentially Significant After: Less than Significant with mitigation incorporation Implementation, Monitoring, and Implementation Action:  Include mitigation measure in project design specifications.  Retain specifications related to discharge facilities in the project file.  Prepare Vegetation Management Plan prior to project implementation.  Retain Vegetation Management Plan in the project file Timing in Reporting on Implementation and Monitoring: Prior to construction by the Valley District Impact: Adverse impacts to water quality due to potential to create or contribute runoff water which could exceed the capacity of planned stormwater drainage systems or provide substantial additional sources of polluted runoff. Mitigation Measures: HYDRO-5: The Valley District shall prepare an Operational Manual for the discharge to City Creek that identifies when discharges would be conveyed to other discharge basins to avoid contributing to flood flows in City Creek during peak flow periods. Level if Impact Before and After Mitigation: Before: Potentially Significant After: Less than Significant with mitigation incorporation Implementation, Monitoring, and Implementation Action:  Prepare Operational Manual prior to project implementation.  Retain Operation Manual in the project file. Timing in Reporting on Implementation and Monitoring: Prior to construction by the Valley District United States Department of the Interior FISH AND WILDLIFE SERVICE Ecological Services Palm Springs Fish and Wildlife Office 777 East Tahquitz Canyon Way, Suite 208 Palm Springs, California 92262 In Reply Refer To: FWS-SB-16B0182-17F0387-R001 August 11, 2017 Sent by Email Mr. Douglas E. Eberhardt Manager, Infrastructure Section U.S. Environmental Protection Agency, Region IX 75 Hawthorne Street San Francisco, California 94105 Attention: Elizabeth Borowiec Subject: Re-initiation of Formal Section 7 Consultation on the Proposed Sterling Natural Resource Center, San Bernardino County, California Dear Mr. Eberhardt: On March 9, 2017, we issued biological opinion FWS-SB-16B0182-17F0387 that addressed impacts to the federally endangered San Bernardino kangaroo rat (Dipodomys merriami parvus; SBKR) and the federally threatened Santa Ana sucker (Catostomus santaanae; SAS) and their respective designated critical habitats for the issuance of federal funding [Clean Water State Revolving Fund (CWSRF)] by the U.S. Environmental Protection Agency (EPA) for the construction and operation of the Sterling Natural Resources Center (project). The EPA has delegated the administration of the CWSRF program to the states, including California, under the federal Clean Water Act (CWA), to assist in funding projects intended to improve water quality. The Division of Financial Assistance of the State Water Resources Control Board (State Water Board) administers the CWSRF program in California pursuant to 40 Code of Federal Regulations (CFR) Part 35, Subpart K. East Valley Water District (EVWD), in cooperation with the San Bernardino Valley Municipal Water District (Valley District), is the non-Federal applicant. The biological opinion analyzed the temporary and permanent impacts associated with the construction of the SNRC facility, new pipeline, and associated outlet structures in the City of Highland, City Creek, and Redlands Basins, and the reduction of effluent flow to the Santa Ana River downstream of the Rapid Infiltration and Extraction (RIX) treatment plant discharge outlet. On June 27, 2017, we received a letter from the State Water Board dated June 22, 2017, requesting changes to the project description related to the roles and responsibilities of the EPA and State Water Board associated with the conservation measures that require ongoing implementation. This amendment addresses the roles and responsibilities of both the EPA and State Water Board associated with the implementation of the SNRC conservation measures. The State Water Board, under guidance from the EPA, is proposing that the EPA and State Water Board will remain responsible for implementation of the Terms and Conditions of the biological opinion’s incidental take statement until funds are disbursed and project implementation is complete, or they no longer retain discretionary involvement or control over the project, as described in 1 and 2, below: Mr. Douglas E. Eberhardt (FWS-SB-16B0182-17F0387-R001) 2 1. If an incidental take permit is issued for the Upper Santa Ana River HCP, prior to completion of the EPA and State Water Board actions and the HCP addresses any outstanding or ongoing project conservation measures, the USFWS will notify the EPA and State Water Board that the terms of the biological opinion have been met. 2. If the permit for the HCP is not issued 6 months prior to the anticipated completion of the project implementation, any unfulfilled obligations, including ongoing management of conservation lands included in the project description by EVWD, will be endowed and taken over by a conservation land manager identified by Valley District. Valley District will establish, subject to the approval of the State Water Board, USFWS, and EPA, an appropriate instrument to hold and disperse funds, identify an endowment manager to regulate disbursement of funds, and identify a conservation land manager. Valley District will evaluate the adequacy of the endowment with a property analysis record, or equivalent analysis, approved by the USFWS. Once the conservation land manager has been identified and engaged and the funding instrument has been established and funded, the USFWS will notify the EPA and State Water Board that terms of the biological opinion have been met. After reviewing the modification of the project description, we have determined that the requested changes to the Project description do not affect the analysis of impacts to SAS, SBKR, or their respective designated critical habitats, the amount or extent of take we expect to result from the proposed action or the conclusions in the original biological opinion (FWS-SB-16B0182-17F0387). This concludes reinitiated formal consultation regarding the maintenance roads and activities for the Sterling Natural Resource Center project outlined in materials submitted to us. As provided in 50 CFR §402.16 reinitiation of formal consultation is required where discretionary Federal agency involvement or control over the action has been retained (or is authorized by law) and if (1) the amount or extent of incidental take is exceeded; (2) new information reveals effects of the agency action that may affect listed species or critical habitat in a manner or to an extent not considered in this opinion; and (3) the agency action is subsequently modified in a manner that causes an effect to the listed species or critical habitat not considered in this opinion; or (4) a new species is listed or critical habitat designated that may be affected by the action. In instances where the amount or extent of incidental take is exceeded, any operations causing such take must cease pending reinitiation. If you have any questions or comments about this consultation, please contact Kai Palenscar of this office at 760-322-2070, extension 408. Sincerely, Kennon A. Corey Assistant Field Supervisor cc: Ahmad Kashkoli, Senior Environmental Scientist, State Water Board Cedric Irving, Environmental Scientist, State Water Board Heather Dyer, Water Resources Project Manager, Valley District KENNON COREY Digitally signed by KENNON COREY Date: 2017.08.11 16:10:04 -07'00' In Reply Refer to: FWS-SB-16B0182-17F0387-R002 January 3, 2022 Sent Electronically Ms. Lily Lee Manager, Infrastructure Section U.S. Environmental Protection Agency, Region IX 75 Hawthorne Street San Francisco, California 94105 Attention: Mimi Soo-Hoo Subject: Re-initiation of Formal Section 7 Consultation on the Proposed Sterling Natural Resource Center, San Bernardino County, California Dear Ms. Lee: We are writing in response to your October 14, 2021, letter requesting reinitiation of consultation for the proposed Sterling Natural Resources Center (SNRC or Project) because of a change in the Project’s location (see paragraph four) in accordance with section 7 of the Endangered Species Act of 1973 (Act), as amended (16 U.S.C. 1531 et seq.). Our original biological opinion (FWS- SB-16B0182-17F0387, 2017 Biological Opinion) for the Project addressed impacts to the federally endangered San Bernardino kangaroo rat (Dipodomys merriami parvus; SBKR) and the federally threatened Santa Ana sucker (Catostomus santaanae; SAS) and their respective designated critical habitats and was issued on March 9, 2017. We also issued an amendment to our biological opinion on August 11, 2017 (FWS-SB-16B0182-17F0387-R001, 2017 Amendment) that addressed the roles and responsibilities of both the EPA and State Water Board associated with the implementation of the SNRC conservation measures. On September 1, 2021, the Clean Water State Revolving Fund (CWSRF) informed the U.S. Environmental Protection Agency (USEPA) that the East Valley Water District (EVWD) in cooperation with the San Bernardino Valley Municipal Water District (Valley District) was modifying the Project. Specifically, Valley District added a new recharge basin, and removed from the Project the conveyance pipeline for discharge into City Creek, Santa Ana River pipeline, and Redlands Basins. These modifications are changes to the physical location of the proposed Project, and therefore changes the location of the action area. Correspondingly, the USEPA updated its findings of effects to listed species from the Project’s new action area. On October 14, 2021, in light of changes to the proposed Project, the USEPA reinitiated consultation. Ms. Lily Lee (16B0182-17F0387-R002) 2 REVISED PROJECT DESCRIPTION Valley District is proposing to construct the SNRC facility in the City of Highland to treat wastewater generated in the EVWD service area for groundwater recharge in the upper Santa Ana River watershed. EVWD currently conveys its wastewater to the City of San Bernardino for secondary treatment at the San Bernardino Water Reclamation Plant (SBWRP) and tertiary treatment at the Rapid Infiltration and Extraction (RIX) facility which discharges to the Santa Ana River. The proposed Project would instead treat, recycle and reuse the wastewater for multiple beneficial uses within the upper Santa Ana River watershed. Valley District proposes to divert up to six million gallons per day (MGD) of wastewater from the RIX facility. This wastewater would not be discharged into the Santa Ana River after treatment, as happens currently. The diverted six MGD would be treated at the Sterling Natural Resource Center and then discharged into the newly proposed Weaver basins in the City of Highland, California. The originally proposed SNRC discharge was into City Creek and Redlands Basins. The original discharge locations had effects to SBKR. The Weaver basin modification does not. The proposed Project also includes a habitat conservation area in the southeastern portion of the Weaver Basin site. The conservation lands are in SBKR designated critical habitat which may provide suitable habitat for San Bernardino kangaroo rat and Santa Ana River woolly-star There would be one emergency overflow discharge location into an outfall to Weaver Channel, which is located east of the Weaver Basin site. Overflow discharge would flow from Weaver Channel into Plunge Creek, and then City Creek, and ultimately the Santa Ana River. However, the Weaver Basins are being designed to eliminate the need to use the emergency overflow. Under an emergency shut down scenario, the basins and emergency overflow tank, should it be needed, would receive a transient surge of water. However, because no more than three of the five basins are expected to be in operation at the same time, there will always be capacity within the basins themselves. Inclusion of the tank and outlet is a requirement for emergency purposes and when localized high ground water conditions are present. Because there is sufficient capacity in the basins, and the water supply to Weaver could be shut down at the SNRC treatment plant in the case of an emergency, it is highly unlikely that use of the emergency overflow would ever be needed. This amended biological opinion is based on information provided in the following documents and communications: biological assessment (ESA 2016a; BA), supplemental biological assessment (ESA 2021; supplemental BA), Habitat Maintenance and Monitoring Plan (ESA 2016c; HMMP) and an amendment to the HMMP (Valley District 2017), Reduced Flow Model (ESA 2015b), focused survey reports, trapping results, and conversations with Valley District. Change in discharge location to the Weaver basins does not change Project effects on Sucker. The sucker analysis in the 2017 Biological Opinion remains valid. The change in discharge location to the Weaver basins does change effects to SBKR and its’ designated critical habitat. The revised analysis is provided below. This amendment addresses the change in the project description (above), changes to the conservation measures for SBKR and Santa Ana River Ms. Lily Lee (16B0182-17F0387-R002) 3 Woolly Star, changes to the action area, changes to the effects of the action on SBKR, and changes to the incidental take statement for SBKR. All other portions of the 2017 Biological Opinion and the 2017 Amendment remain valid and in force. CONSERVATION MEASURES The general and species-specific conservation measures (CM) listed below have been included in the Project to avoid and minimize impacts to federally listed species and their designated critical habitats or to offset impacts that may otherwise adversely affect a listed species or designated critical habitat. The proposed modifications to the physical location of discharge locations and groundwater recharge areas have made some conservation measures from the 2017 Biological Opinion unnecessary and other measures have been revised. Conservation measures listed in this document are exhaustive and supersede any conservation measures listed in our 2017 Biological Opinion for the Project. Eliminated Conservation Measures include those intended to minimize effects to SBKR and Santa Ana River Woolly-Star. For comparison, the Conservation Measures are provided in Appendix B with the changes from our 2017 Biological Opinion indicated in bold and strikethrough text. General Measures CM 1. Worker Environmental Awareness Program. A Worker Environmental Awareness Program (WEAP) will be provided to work crews by a qualified biologist(s) prior to the commencement of construction activities. Each worker will receive the WEAP training prior to beginning work on the Project. Training materials and briefings will include but not be limited to, discussion of the federal and state Endangered Species Acts, the consequences of noncompliance with Project permitting requirements, identification of special-status plant and wildlife species and sensitive natural plant community habitats present in or adjacent to the work areas, a contact person in the event of the discovery of dead or injured wildlife, and review of construction-related avoidance and minimization requirements. Maps showing the location of special-status plants and wildlife, exclusion areas, or other construction limitations (i.e., limited operating periods) will be provided to the environmental monitors and work crews prior to ground disturbance. CM 2. Limits of Disturbance. Prior to construction in or adjacent to sensitive habitat areas and under the direction of a qualified biologist, Valley District will clearly delineate the construction right-of-way (stake, flag, fence, etc.) that restricts the limits of construction to the minimum necessary to implement the Project. CM 3. Biological Monitoring. Prior to the start of construction, Valley District will retain a qualified biological monitor on site (Weaver Basins) during the initial ground disturbance and on an as-needed basis to ensure that construction activity is being confined to the delineated area and to verify that the barrier fencing (CM 6) is intact. The biological monitor will be a qualified biologist with species expertise appropriate for this project. The biological monitor will ensure compliance with Ms. Lily Lee (16B0182-17F0387-R002) 4 the Project description evaluated in the biological opinion, including all CMs and terms and conditions, and will have the authority to halt or suspend all activities until appropriate corrective measures have been taken. The biological monitor will report any non-compliance immediately to the USFWS. CM 4. Construction Best Management Practices. The Contractor will implement the following Best Management Practices during construction of pipelines and discharge structures to protect any adjacent sensitive natural communities that provide habitat for special-status species. a. The following water quality protection measures will be implemented during construction: i. Stationary engines, such as compressors, generators, light plants, etc., will have drip pans beneath them to prevent any leakage from entering runoff or receiving waters. ii. All construction equipment will be inspected for leaks and maintained regularly to avoid soil contamination. Leaks and smears of petroleum products will be wiped clean prior to use. iii. Any grout waste or spills will be cleaned up immediately and disposed of off-site. iv. Spill kits capable of containing hazardous spills will be stored on-site. b. To prevent inadvertent entrapment of common and special-status wildlife during construction, all excavated, steep-walled holes or trenches more than 2 feet deep will be covered with tarp, plywood or similar materials at the close of each working day and will be inspected visually to confirm animals would be excluded, to prevent animals from being trapped. Ramps may be constructed of earth fill or wooden planks within deep walled trenches to allow for animals to escape, if necessary. Before such holes or trenches are backfilled, they should be thoroughly inspected for trapped animals. If trapped wildlife is observed, escape ramps or structures will be installed immediately to allow escape. CM 5. On Site Overnight Storage. All construction pipes, culverts, or similar structures that are stored at a construction site for one or more overnight periods should be thoroughly inspected for birds and other wildlife before the pipe is subsequently buried, capped, or otherwise used or moved. San Bernardino Kangaroo Rat CM 6. For avoidance of SBKR at the Weaver Basin site barrier fencing will be erected between and suitable SBKR habitat located south of the Project site. The fencing configuration and materials do not need to meet the specifications found in Appendix Ms. Lily Lee (16B0182-17F0387-R002) 5 A. An alternative fence design or material may be used. Proposed fence installations may be submitted to the USFWS for review b. The integrity of the fencing will be maintained in good working order throughout the duration of the Project. c. Construction access openings, if included within the barrier fence, will be closed and secured at the end of each work day using the at-grade fencing method. d. The fence will remain in place for the duration of construction activities and removed at the completion of the relevant Project activity. CM 16. Nighttime construction and night lighting will not be allowed. CM 17. Valley District will prepare and implement a revegetation plan to replace temporarily impacted habitat in proposed impact areas located within designated SBKR critical habitat. The revegetation plan will be submitted to the USFWS a within 120 days of commencing construction activities in SBKR critical habitat. At minimum, the revegetation plan will include the following elements: a. Relevant conditions of Project permits and this biological opinion. b. Clear guidelines and quantifiable success criteria to measure progress toward fulfilling relevant conditions and to determine that implementation has been successfully completed. c. Performance standards to set appropriate quantitative and qualitative measurements of coverage and diversity of the scalebroom scrub vegetation and non-native vegetation to assure that the effort is progressing toward replacement of habitat to pre-Project levels of cover and diversity, or high quality as approved by the USFWS. Within 5 years after commencing revegetation efforts, cover and diversity should have progressed toward an intermediate phase of scalebroom scrub. Both early and intermediate stages of scalebroom scrub (native perennial plant cover 30 to 50 percent) and limited non-native plant species cover (less than 10 percent) provide suitable habitat for SBKR and woolly-star. d. Guidelines and specifications for salvage and redistribution of topsoil, vegetative debris, and organic material (“duff”), as well as other pertinent planting specifications. e. Guidelines for controlling and monitoring invasive, non-native plants. f. Specifications for seed application including guidance for materials and source material, rates of application, and appropriate application methods and timing specifications, and methods will be based on locally successful SBKR habitat restoration Projects within the watershed. Ms. Lily Lee (16B0182-17F0387-R002) 6 g. Descriptions of maintenance and monitoring methods to promote successful implementation of the plan. CM 18. Permanent impacts to unoccupied designated critical habitat for SBKR at Weaver Basins (approximately 16.93 acres), will be offset onsite through permanent conservation of approximately 17 acres of unoccupied designated SBKR critical habitat in the southeastern portion of the Weaver Basins site. Temporary impacts to designated SBKR critical habitat at Weaver Basins will be restored in place. All SBKR habitat temporarily impacted during construction will be restored in accordance with the approved revegetation plan. Santa Ana River Woolly-Star Santa Ana Sucker CM 21. The following measures will avoid, minimize, and offset Project-related impacts to SAS associated with up to 1.21 acres of permanent degradation of occupied designated critical habitat in the mainstem of the Santa Ana River from the RIX outfall downstream to approximately Mission Boulevard. a. Valley District will prepare and implement the HMMP which will identify habitat improvement actions and methods for implementation, monitoring, and maintenance. The diversion of wastewater flow from the RIX Facility to the SNRC will not occur until Valley District’s Santa Ana Sucker HMMP has been approved by the USFWS and the actions proposed in this measure have been completed or show evidence of significant progress toward successful implementation such as engineering design(s) and/or other regulatory compliance such as the California Environmental Quality Act, or consultation with the USFWS will be reinitiated. b. The HMMP will include the measures listed below to offset direct and indirect impacts to SAS and its habitat resulting from the loss of up to 22.3 percent (6.43 MGD of 28.4 MGD calculated from the November 2014 to May 2016 discharge) discharge from the RIX outfall into the Santa Ana River. The HMMP will contain measures to increase the number of individual SAS in the Santa Ana River, increase the area of suitable and occupied habitat in this watershed, and establish two new populations in the watershed. It will be implemented by a contracted, qualified, and permitted entity in coordination with the USFWS. The HMMP will specify goals and performance criteria for each conservation measure and include the following elements: i. Habitat Node Creation (microhabitat enhancements) to offset the potential reduction of suitable habitat available to sucker, including the above listed habitat features, resulting from decreased flow, decreased water velocity, and decreased sand transport. Objective: Increase the total area of suitable habitat available to sucker, including riffles, small scour pools, and exposed patches of gravel/cobble Ms. Lily Lee (16B0182-17F0387-R002) 7 substrate by strategically placing a series of structures within the stream flow to manipulate water movement and create these microhabitat areas. This measure is expected to enhance perennial stream habitat within at least 1.5 acres of occupied habitat along about 2.5 miles of river, as measured by the area of pools created, gravel/cobble substrates exposed, and other functional SAS habitat features created/enhanced. The creation of all 6 habitat nodes will occur prior to any water diversions. If future data suggests that impacts to the species are either greater than expected or habitat nodes cannot be created to functionally offset Project impacts, the Project will obtain technical assistance from the USFWS to develop a new or revised CM that will achieve the biological objective(s) as analyzed in this opinion, or consultation with the USFWS will be reinitiated. The Project will implement microhabitat enhancements (habitat nodes) within ecologically valuable segments of the Santa Ana River downstream of the RIX discharge location to improve the abundance and distribution of the above mentioned SAS habitat features. Enhancements will include the use of natural materials to increase scour and pool formation. Substrate augmentation (e.g., river gravel and cobble) may also occur in the same area to enhance perennial stream habitat function. Examples may include placement of large boulders and/or large woody debris to increase velocity of flow and gravel bar patches as well as deep pool refugia areas. A minimum of six habitat nodes will be created. One naturally occurring riffle/pool feature (natural node) in the Santa Ana River was observed to enhance the stream habitat for SAS for approximately 330 feet (100 meters, 0.25 acres). Between 2015 and 2016 the USGS Native Fishes Survey found that the relative abundance of exposed gravels increased in this area suggesting that the size of the affected area associated with the node is subject to fluctuate based upon environmental conditions and the abundance of fine sediment in the inset channel (SAS occupied stream) (Brown and May 2016, 2017). Although all nodes will be unique in design, each will serve to replicate the scale and provide similar ecological functions as the natural node discussed above. The nodes will be located in the Santa Ana River mainstem between the RIX outfall and River Road Bridge. To maximize habitat value and function locations should be associated with mainstem tributaries (Evan’s Lake, Arroyo Tequesquite, Sunnyslope Drain, Anza Drain, Hole Creek, etc.). Locations will need to be further refined by field survey data. Habitat nodes will be monitored annually and the survey data will be used to assess the need for corrective measures. Annual monitoring will Ms. Lily Lee (16B0182-17F0387-R002) 8 include, at minimum, water quality, visual estimates of substrate cover types, and fish surveys. When the cumulative cover of boulder, cobble, and gravel is found to be less than 35 percent for any habitat node (mean cover measured over a 0.25 acre reach associated with a node), maintenance and/or reinstallation of nodes will be conducted to maintain a minimum of 0.25 acres of habitat enhancement for every node or a cumulative enhancement of 1.5 acres for all six nodes. All work conducted in the Santa Ana River will be done in coordination with the USFWS and CDFW. If vegetation removal is required for ingress, egress, or other work areas associated with Habitat Node creation and maintenance it will be revegetated. Quantitative and qualitative performance standards addressing vegetation cover and diversity will be included in the HMMP. Within 3 and at most 5 years after commencing revegetation efforts, cover and diversity should have progressed toward pre-Project levels of cover and diversity, or higher quality for the benefit of vireo and SAS. It is not anticipated that maintenance work, requiring vegetation removal, will be needed more frequently than every 5 years. ii. Aquatic Predator Control Program to offset the potential increase in non- native predator habitat (pools or other microhabitats that provide relatively deep and slow velocity water flow) resulting from reduced discharge volume. Objective: Reduce the abundance of non-native predators in the reach of river affected by the Project so as to maximize native fish survival. The non-native predator removal program will be focused on reducing the abundance of non-native aquatic predators immediately preceding the start of the sucker spawning season (approximately March 1). Species to be removed may include non-native fish, amphibians, and reptiles such as mosquitofish, largemouth bass, black bullhead catfish, green sunfish, red- eared slider, African clawed frog, and American bullfrog. This activity will occur at minimum of one time per year outside of the SAS spawning season (August 1 to February 28). The most recent fish and/or other surveys conducted upstream of Prado Basin in the Santa Ana River will provide the locations of where to conduct electroshocking. Electroshocking will be carried out by a USFWS-approved SAS biologist authorized to use electroshock sampling methods. Pre-spawning predator removal will occur annually prior to February 15 in areas of highest ecological value to SAS reproduction, currently from Rialto Channel downstream to approximately Mission Boulevard and in mainstem tributaries. If aquatic predators are found in abundance after pre-spawning predator removal, a second predator removal will be conducted after August 1. Ms. Lily Lee (16B0182-17F0387-R002) 9 iii. Exotic Weed Management Program to reduce competitive stress for native vegetation within the riparian community in order to offset the impacts associated with reduced water availability resulting from the Project. Objective: Maintain a low abundance and cover of non-native vegetation along the Santa Ana River and in City Creek within the Project impact area (RIX outlet to Mission Boulevard and Boulder Avenue to Alabama Street, respectively), focusing on the removal of giant reed, tamarisk, and castor bean. The exotic weed management program will be carried out by a qualified and experienced entity and will focus on controlling the non-native vegetation within the riparian corridor between the Rialto Channel and the Mission Boulevard Bridge (approximately 4.2 miles). This measure will establish and maintain weed control in one-third of the area (approximately 1.4 miles) per year, so as to complete the weeding of the entire area once every 3 years. Annual work plan meetings between the USFWS, Valley District staff, and contractor will identify areas of concern and focus work efforts on those areas. A successful program will maintain total cover of non-native riparian species to less than 25 percent and total cover of giant reed, tamarisk, and castor bean to less than 5 percent. Percent cover will be assessed relative the total area of the weeded riparian corridor for that year. Although they are native species, cattails (Typha spp.) and bulrush (Schoenoplectus spp.) may increase in abundance over time as their preferred habitat type (slow, shallow water or marsh) is expected to increase due to Project reductions of flow. These plant species may degrade sucker habitat by further reducing water velocity and trapping fine sediment. Problem areas will be identified as part of the Riverwalk survey (see below for more on Riverwalk survey) and if certain areas have become problematic they will be managed in coordination with the USFWS and CDFW. iv. Rialto Channel Water Temperature Management to offset the potential loss of suitable habitat downstream in the Project impact area during times of the year when habitat will be most affected from the cumulative impacts from reduced discharge and drought effects, particularly in summer and fall. Objective: Reduce water temperatures in Rialto Channel to tolerable levels (less than 86 degrees Fahrenheit) during summer months. In recent years the temperatures within the natural bottom reach of Rialto Channel (not concrete lined section) were found to be generally greater than 80 degrees Fahrenheit in summer and fall (USGS 2015) and often warm enough to be outside of the tolerable range for sucker (USFWS Ms. Lily Lee (16B0182-17F0387-R002) 10 2010b). In order to decrease the water temperature in Rialto Channel to tolerable levels for SAS relatively cool groundwater (67 – 70 degrees Fahrenheit, temperature range derived from local nearby well operators), from up to 4 wells or other water sources will be added to the flows in Rialto channel. In order to implement this measure most effectively, two water quality monitoring stations will be established in Rialto Channel. An upstream, real-time gage will measure the water temperature at the well input location (plunge pool downstream of Agua Mansa Bridge). At 85 degrees Fahrenheit the groundwater wells will automatically turn on and release directly into the plunge pool. Another real-time gage will be installed downstream of the plunge pool Rialto Channel just before the confluence with the Santa Ana River and. Once the water temperature at this downstream gage is less than 82 degrees Fahrenheit the well input will be turned off. Initiation and cessation of well water input (discharge) will be phased over a period of time to reduce sudden changes in flow and temperature in Rialto Channel. The well input and controls will be constructed and tested prior to diversion of flows from the RIX facility to the SNRC. This program will be deemed successful if there are 5 or fewer days between June 22 and September 21 that the daily maximum water temperature exceeds 82 degrees Fahrenheit and SAS are present in the channel during the same period. Water temperature will be measured in Rialto Channel upstream of the RIX outfall. If success criteria are not met within 2 years of signing the biological opinion, the Project will obtain technical assistance from the USFWS to develop a new or revised CM that will achieve the biological objective(s) as analyzed in this opinion. v. Upper Watershed SAS Population Establishment to offset potential losses of suitable habitat in the Project’s impact area, and to offset unknown and/or cumulative impacts to the species and its habitat that may be associated with the reduction of flow to the Santa Ana River. Objective: Increase the abundance, distribution and resilience of the sucker population in the Santa Ana River Watershed by establishing redundant populations in upper watershed tributaries. Subject to the availability of sufficient source fish, the Project will establish two new locations of sucker within City Creek and Hemlock Creek, or another suitable unoccupied location within the former range of the species within the Santa Ana River watershed as approved by the USFWS. Both City and Hemlock creeks have been analyzed as part of the Santa Ana Sucker Translocation Plan (Dudek 2016a, 2017). Valley District has assessed the habitat availability and appropriateness for SAS in City and Hemlock creeks (Dudek 2016b). These documents show that Ms. Lily Lee (16B0182-17F0387-R002) 11 portions of each of these streams have the necessary primary constituent elements (PCEs) to support SAS, as well as additional factors found to be important to SAS (Aspen 2016). The Translocation Plan is currently under review by the USFWS, CDFW, and U.S. Forest Service (USFS). Prior to Project flow reduction to the Santa Ana River, at least one translocation of SAS will have occurred and Valley District will provide data indicating that the nascent population is healthy, reproducing, and appears to be successfully establishing. Successful establishment of SAS will have occurred when there are surviving and reproducing fish in at least two size classes, the population of SAS is stable or increasing in population as averaged over 5 years, and the translocated population is distributed throughout the appropriate habitat in the translocation stream1. If success criteria are not met in both translocation tributaries within 5 years of signing the biological opinion, the Project will obtain technical assistance from the USFWS to develop a new or revised CM that will achieve the biological objective(s) as analyzed in this opinion. The HMMP will identify and further detail the goals and success criteria of SAS re-establishment and include the amount of financial assistance to be provided by Valley District for the regionally-beneficial population establishment program, including additional measures found below. 1. Valley District will contract with a USFWS-approved entity that can demonstrate the ability to re-introduce captively-bred SAS to a suitable unoccupied location with the intent of establishing a new self-sustaining population within the former range of the species on the Santa Ana River. The Contract requirements will include the following: (1) rearing and maintaining a sufficient number of breeding adults to support re-introduction of a minimum of 500 juvenile SAS into the target area per year (or alternate numbers agreed to by the USFWS); (2) annual relocations for the first 3 years, then as needed to maintain a stable population size and genetic diversity; and (3) monitoring, adaptive management, and annual reporting. 2. Valley District may reintroduce captive-bred SAS if (1) captive breeding documentation has been approved by the USFWS and CDFW and (2) the captive breeding facility has adequate numbers of appropriate sized SAS. If these conditions are not met or if additional fish are needed for translocation purposes SAS may be translocated from the Santa Ana River to the west fork of City Creek and one other historic tributary in the Santa Ana River watershed2. Ms. Lily Lee (16B0182-17F0387-R002) 12 3. If, at any time, SAS are found located downstream Highland Avenue Bridge, Valley District will be responsible for relocating all SAS back upstream within the boundaries of the San Bernardino National Forest or out of locations that where their presence might affect other entities who do not have incidental take exemptions for this species. This measure will be implemented for the life of the Project or until another entity, such as the HCP, takes over this responsibility. vi. Annual Monitoring of the Santa Ana River to track the suitability and habitat for SAS following implementation of the Project and its conservation measures. Objective: Identify any key effects to the hydrology or biology of the River that may result from reduced flow due to this Project. The HMMP will outline a monitoring program to collect hydrology data in the segment of river between the RIX outlet and Mission Boulevard and within the habitat node creation reaches. Hydrology data will include water quality (flow velocity, temperature, and depth), visual observations of substrate, and other surface topography, and fish surveys. Annual reporting will include summaries of the non-native plant and aquatic predator removals and any adaptive management actions taken in the past year, and will be submitted to the USEPA, State Water Board, and USFWS by April 30 for review and comment. All long-term monitoring and management activities will be completed by the Project proponent per the commitments included in the HMMP and required by this biological opinion until the HCP is finalized and permitted or until incidental take associated with the Project becomes covered by another mechanism. In order to make best use of the existing Riverwalk habitat survey dataset, (Riverwalk which has been conducted annually in the fall for the past 11 years), the Project will provide support to Riverwalk organizers, whether financial or in-kind services and develop the long-term monitoring methodology to be complementary to the Riverwalk survey data collection to provide a greater understanding of habitat availability throughout the entire system. The locations of the habitat nodes, as described above, will be added to the Riverwalk survey area as non-random transects. At least one year’s worth of baseline data that captures the entire river corridor (Riverwalk points 9 to 118) will be recorded prior to a reduction in discharge flow from RIX. Ms. Lily Lee (16B0182-17F0387-R002) 13 Action Area Regulations implementing the Act (50 CFR § 402.02) describe the action area as all areas to be affected directly or indirectly by the Federal action and not merely the immediate area involved in the action. Revisions in the project description have resulted in a change in the action area from the 2017 BO. The Project will no longer discharge water into City Creek and Redlands Basins discharge locations. Instead, the new discharge location is at the new Weaver Basins site. We have defined the action area to include the Sterling Natural Resource Center west of North Del Rosa Drive; the pipeline corridor along 6th Street, 5th Street, and Greenspot Road; the discharge location at Weaver Basin east of Merris Street; and the potential areas of direct and indirect effects to the listed species, including the Santa Ana River from Rialto Channel downstream to River Road Bridge; the area downstream of emergency overflow discharge from Weaver Channel into Plunge Creek, and then City Creek; and the receiver streams for the proposed translocation of SAS, Hemlock Creek in the San Bernardino National Forest and City Creek upstream of Highland Avenue bridge. The Weaver Basin site is the only addition to the action area. The 68.4-acre site is vegetated by remnant alluvial fan sage scrub that has been heavily invaded by non-native annual grasses. It is not occupied by SBKR, but 38.6 of the site are within the Sant Anan River Unit (Unit 1) of designated SBKR critical habitat. EFFECTS OF THE ACTION You have requested our concurrence with your determination that the proposed Project as revised is not likely to adversely affect Southwestern willow flycatcher (Empidonax traillii extimus; flycatcher) and its designated critical habitat, Least Bell’s vireo (Vireo bellii pusillus; vireo) and its designated critical habitat, and designated critical habitat for the San Bernardino kangaroo rat (Dipodomys merriami parvus; SBKR). Flycatcher, Vireo, And Their Designated Critical Habitats In our 2017 Biological Opinion we determined there would be beneficial effects to flycatcher and vireo from the development of approximately 8.2 acres of riparian woodland in City Creek which was expected to result from the discharge of treated water into City Creek from the SNRC. The anticipated woodland habitat would have offset any loss of riparian habitat in the mainstem of the Santa Ana River. Because Valley District has modified the project description, this beneficial effect will not occur, and we do not expect beneficial effects from the new Weaver basins site for flycatcher or vireo. Similarly, discharge from the emergency overflow at the Weaver basins will be rare, if at all, so we do not expect riparian woodland to develop downstream of the emergency overflow. The best available information indicates that up to 1.21 acres of wetted habitat will be permanently lost with Project related reduced discharge into the Santa Ana River downstream of RIX. However, we expect the associated loss of riparian habitat to be diffusely distributed along about 4.2 stream miles from the RIX outlet downstream to Mission Boulevard and will vary by location, depending on river depth. We do not expect a detectable change in the distribution of riparian woodland habitat downstream of the RIX outfall. Ms. Lily Lee (16B0182-17F0387-R002) 14 Conservation Measure 17b.i is included in the Project description to enhance portions of the perennial stream habitat for SAS in the mainstem of the Santa Ana River. This activity may temporarily remove riparian vegetation in ingress, egress, and work areas at six locations downstream of the Riverside County Flood Control and Water Conservation District-maintained Riverside Levee System but will be conducted in areas not occupied by flycatcher or vireo. Removal of riparian woodland vegetation will be minimized in coordination with the USFWS to avoid incidental take of flycatcher and vireo. San Bernardino Kangaroo Rat Critical Habitat The 68.4-acre Weaver basins site is currently unoccupied by SBKR, and approximately 38.6 acres of it are designated SBKR critical habitat. Construction of the basins will result in permanent loss of about 16.93 acres and temporary impacts to about 0.87 acres of designated SBKR critical habitat. The temporary impact area will be revegetated with native scrub. Valley District will permanently conserve approximately 17 acres of designated SBKR critical habitat within the Weaver basins site. The basins will eliminate 0.87 acres on the northern edge of designation. The 17-acre conservation area is contiguous to other SBKR critical habitat. San Bernardino Kangaroo Rat With the change in the project description, the proposed action will no longer result in effects to SBKR. The SBKR effects analysis in our 2017 Biological Opinion is therefore no longer valid, as the analyzed effects will not occur. CONCLUSION We concur with your determination that the proposed action is not likely to adversely affect flycatcher or vireo. We have made this determination because 1) the Project-induced reduction in discharge into the Rialto Channel and Santa Ana River downstream of RIX is not expected to detectably reduce the available flycatcher and vireo foraging or nesting habitat, 2) we do not expect the Project to reduce the amount of habitat in any specific location that would negatively affect an occupied territory or rise to the level of take, 3) the absence of vireo, flycatcher, and their respective designated critical habitat from the new Weaver Basin site, and 4) conservation measure 17b.i which the USEPA has included to avoid and minimize effects to vireo and flycatcher from removal of riparian vegetation. We also concur with your determination that the proposed action is not likely to adversely affect SBKR designated critical habitat. We concur with your determination because 1) the loss of SBKR critical habitat is a small impact to SBKR critical habitat overall and discountable, 2) Valley District will conserve in perpetuity an approximately 17 acres of SBKR critical habitat (CM 14) that is contiguous with adjacent SBKR designated critical habitat, 3) Valley District will restore the small area of temporary impacts to SBKR critical habitat (CM 13), and 4) the SBKR designated critical habitat within the Weaver basins site is unoccupied. The analysis and conclusion in our 2017 Biological Opinion for sucker remain valid. Ms. Lily Lee (16B0182-17F0387-R002) 15 INCIDENTAL TAKE STATEMENT The incidental take statement in our 2017 Biological Opinion is amended as provided below. The Incidental Take Statement provided here supersedes the one provided in the 2017 Biological Opinion. For comparison, the Incidental Take Statement is provided in Appendix C with the changes from our 2017 Biological Opinion indicated in bold and strikethrough text. Section 9 of the Act and Federal regulation pursuant to section 4(d) of the Act prohibit the take of endangered and threatened animal species, respectively, without special exemption. Take is defined as to harass, harm, pursue, hunt, shoot, wound, kill, trap, capture or collect, or to attempt to engage in any such conduct. The Service further defines “harm” to include significant habitat modification or degradation that results in death or injury to listed species by significantly impairing essential behavioral patterns, including breeding, feeding, or sheltering. Incidental take is defined as take that is incidental to, and not the purpose of, the carrying out of an otherwise lawful activity. Under the terms of section 7(b)(4) and section 7(o)(2), taking that is incidental to and not the purpose of the agency action is not considered to be prohibited taking under the Act provided that such taking is in compliance with the proposed protective measures and the terms and conditions of an incidental take statement and occurs as a result of the action as proposed. The measures described below are non-discretionary and must be undertaken by the USEPA so that they become binding conditions of any grant or permit issued to the EVWD, for the exemption in section 7(o)(2) to apply. The USEPA has a continuing duty to regulate the activity covered by this incidental take statement. If the USEPA: (1) fails to assume and implement the terms and conditions, or (2) fails to require the EVWD to adhere to the terms and conditions of the incidental take statement through enforceable terms that are added to the permit or grant document, the protective coverage of section 7(o)(2) may lapse. In order to monitor the impact of incidental take, the USEPA or EVWD must report the progress of the action and its impact on the species to the Service as specified in the incidental take statement [50 CFR § 402.14(i)(3)]. AMOUNT OR EXTENT OF TAKE Santa Ana Sucker The regulations for section 7(a)(2) clarify that the Service may use surrogates to express the amount or extent of anticipated take when “exact numerical limits on the amount of anticipated incidental take may be difficult” (80 FR 26832). The implementing regulations [50 CFR § 402.14(i)(1)(i)] require that the Service meet three conditions for the use of a surrogate. To use a surrogate, the Service must: 1. Describe the causal link between the surrogate and take of the listed species: The growth and survival of individual fish in a population depends on the physical and biological features of their niche habitat. Therefore, the physical features of water quality, flow, substrate, and sediment transport can be related to take of the SAS. Consequently, we consider a long-term deviation from the typical water quality parameters generally found within the Santa Ana River to be a reasonable surrogate. It Ms. Lily Lee (16B0182-17F0387-R002) 16 is anticipated that the reduction of aquatic habitat, reduced depth, and lower velocities associated with the reduction of 6.43 MGD to the Santa Ana River will result in incremental effects of sand deposition that will reduce SAS egg development/survival, increase egg predation, reduce fitness of adults that may expend more energy finding suitable spawning habitat, and reduce survival of SAS at all life stages. 2. Describe why it is not practical to express the amount of anticipated take or to monitor take-related impacts in terms of individuals of the listed species: We cannot express the amount of anticipated take or to monitor take-related impacts in terms of individuals of the listed species for several reasons. Since the SAS is small, cryptic, and aquatic, detection of taken individuals is not always possible. Larvae of SAS may be too small to detect if taken. Taken individuals may be swept downstream, obscured by turbid waters, buried, or consumed by predators or scavengers shortly after death. The presence of aquatic vegetation may also hinder visibility and detection. Santa Ana sucker have a boom-bust population demographic and their numbers can vary widely from year to year. 3. Set a clear standard to determine when the proposed action has exceeded the anticipated amount or extent of the taking: Take of SAS may be exceeded if the amount of acres of habitat is exceeded, or if the amount of water diverted from SAS habitat is exceeded. The exact distribution and population size of SAS is difficult to estimate due to the dynamic conditions associated with their habitat and biology. Some SAS may be injured or killed as a result of the capture and relocation efforts during habitat node creation, during long-term monitoring, during electroshocking activities for predator removal, or for the purposes of salvage in City Creek or another translocation stream. Because we do not have site-specific data regarding the density of SAS at the site of the proposed action, the precise number of animals that will be affected by the proposed action is difficult to quantify. Nevertheless, based on the best available information, we have established the following take exemptions for SAS: IT 1. Death or injury of adult and/or young SAS from displacement due to channel constriction and habitat loss of up to 1.21 acres resulting from up to 6.43 MGD of discharge flow reduction from the RIX facility. The amount or extent of incidental take will be exceeded if more than 1.21 acres of aquatic habitat is permanently lost from discharge flow reduction. IT 2. Capture and relocation of all SAS from within construction areas during construction and/or reconstruction of six habitat nodes in the mainstem of the Santa Ana River. Incidental take will be exceeded if more than six SAS are injured or killed during capture and relocation activities during construction and/or reconstruction of the six habitat nodes (1 fish per node) in any one calendar year. Ms. Lily Lee (16B0182-17F0387-R002) 17 IT 3. Capture of SAS from the Santa Ana River for translocation to the upper watershed or to supplement the captive-population, for purposes of breeding and subsequent relocation. Incidental take will be exceeded if more than 25 percent of the Santa Ana River population or 400 SAS per year are removed for translocation/relocation purposes, per the programmatic consultation on SAS recovery permits (USFWS 2015a). IT 4. Capture and measurement of SAS from the mainstem of the Santa Ana River and from the two new populations created in the species’ historic range for long-term monitoring and management. Incidental take will be exceeded if more than six SAS are injured or killed during long-term species monitoring in the Santa Ana River watershed per calendar year, or a mean of two (2) fish per metapopulation. IT 5. Capture and relocation of all SAS for the purpose of salvage from drying habitat or other threats that subject them to imminent mortality. There is no limit on the numbers of SAS that may be relocated during salvage efforts. EFFECT OF THE TAKE In this biological opinion, we have determined the level of anticipated take is not likely to result in jeopardy to SAS, or adversely modify SAS critical habitat. CONCLUSION After reviewing the current status of the SAS, environmental baseline for the action area, effects of the proposed action, and cumulative effects, it is the USFWS’s biological opinion that the proposed action is not likely to jeopardize the continued existence of SAS, or adversely modify SAS critical habitat. Our conclusion is based on the following: 1. The permanent loss of designated SAS critical habitat will be offset by the creation and maintenance of habitat nodes and cooling of summer water temperature in Rialto Channel; thus, the ecological function and values of designated critical habitat will be maintained in this unit and within the overall designation; 2. The enhancement of Santa Ana River aquatic and riparian habitats, reintroduction to portions of its historic range, and long-term management of existing and new populations to offset the displacement of SAS in the river by the proposed action will support the range-wide conservation (recovery) of SAS. REASONABLE AND PRUDENT MEASURES We have determined that the following reasonable and prudent measures are necessary and appropriate to minimize the impact of the incidental take of SBKR and Santa Ana sucker: Ms. Lily Lee (16B0182-17F0387-R002) 18 RPM 1. The USEPA and or EVWD will monitor and report on compliance with the established take threshold for federally listed wildlife species associated with the proposed action. RPM 2. The USEPA and or EVWD will monitor and report on compliance with, and the effectiveness of, the proposed conservation measures for the Project. TERMS AND CONDITIONS To be exempt from the prohibitions of section 9 of the Act, the USEPA must comply with the following terms and conditions, which implement the reasonable and prudent measures described above and outline monitoring and reporting requirements. These terms and conditions are non- discretionary. To implement reasonable and prudent measure number 1(monitor and report on compliance with established take thresholds), the USEPA and or EVWD will: TC 1.1 Ensure the Authorized Biologist(s) or Biological Monitor(s) who will trap or handle federally listed species are qualified and have been pre-approved by PSFWO for work on this Project. TC 1.2 Implement the CMs as specified in the Project description evaluated in this biological opinion. If the Biological Monitor detects impacts to federally listed species from Project-related activities in excess of that described in the above incidental take statement, the USEPA, EVWD, or the Biological Monitor will contact the PSFWO within 24 hours. At that time, the PSFWO and the USEPA or EVWD must review the circumstances surrounding the incident to determine whether additional protective measures are required. Project activities may continue pending the outcome of the review, provided that the proposed protective measures and any appropriate terms and conditions of this biological opinion have been and continue to be fully implemented. TC 1.3 If the amount of authorized take for any federally listed species as defined in the Incidental Take Statement is exceeded, the USEPA must reinitiate consultation, pursuant to the implementing regulations for section 7(a)(2) of the Endangered Species Act at 50 CFR 402.16, on the proposed action. To implement reasonable and prudent measure number 2 (monitor and report on compliance with, and the effectiveness of, the proposed conservation measures), the USEPA or Valley District will: TC 2.1 Within 45 days of the completion of the proposed action, the USEPA or Valley District must provide a report to the PSFWO that provides details on the effects of the action on the federally listed species. Specifically, the report must include information on any instances when federally listed species were killed, injured, or handled; the circumstances of such incidents; and any actions undertaken to prevent similar instances from re-occurring. Ms. Lily Lee (16B0182-17F0387-R002) 19 TC 2.2 Ensure USFWS personnel have the right to access and inspect the Project site during Project implementation (with prior notification from us) for compliance with the Project description, conservation measures, and terms and conditions of this biological opinion. Santa Ana sucker To implement reasonable and prudent measure number 1(monitor and report on compliance with established take thresholds), the USEPA and/or Valley District will: 1. In addition to the CMs outlined in this biological opinion, when capturing and releasing any SAS found in the construction area, the Qualified Biologist will implement the following measures: a. Only the use of fine mesh (2 to 4 millimeter) knot-less seine nets, fine mesh (4 to 6 millimeter) knot-less hoop nets, modified hoop nets, or similar traps, or dip nets of 0.5 millimeter or finer mesh will be used for capturing SAS. b. Survey methods will be selected to minimize potential injury or mortality to SAS and potential disturbance or damage to breeding areas. c. If seines are used, particular care will be taken to avoid incidental injury or mortality to SAS that may be caught and suffocated in algal mats or sand. d. Care will also be taken to keep SAS in river water as much as possible and they should be released as close to the point of capture as possible. e. Use of non-conventional sampling gear must first be approved by the PSFWO. f. Electrofishing may be employed with the following restrictions upon following under the following conditions: i. Electrofishing activities will not be conducted from March 1 through July 31. ii. A Qualified Biologist will be the crew leader during electrofishing. The crew leader must have at least 100 hours of electrofishing experience in the field using similar equipment. iii. The crew leader will provide basic training in electrofishing for the crew consisting of: 1. Definitions of basic terminology (e.g., galvonotaxis, narcosis, and tetany). 2. An explanation of how electrofishing attracts fish. Ms. Lily Lee (16B0182-17F0387-R002) 20 3. An explanation of how gear can injure fish and how to recognize signs of injury. 4. A review of these terms and conditions as well as the manufacturer’s recommendations. 5. A demonstration of the proper use of electrofishing equipment, the role each crew member performs, and basic gear maintenance. 6. A review of safety considerations. iv. Prior to conducting electrofishing activities, visual surveys will be conducted to search for small, young SAS. If more than 100 small SAS (less than 30 millimeters in total length) occur within the sampling site, electrofishing activities will not be conducted. v. To avoid potential suffocation of SAS, electrofishing will not occur in areas where algal mats are located. vi. All captured suckers collected and retained will be placed in river water in insulated, aerated, and covered containers. Temperature, dissolved oxygen levels, and fish behavior (e.g., fish gulping at the surface indicating low dissolved oxygen levels) should be recorded to ensure that ambient river water quality levels are maintained. vii. Valley District or the Qualified Biologist will coordinate research or long- term monitoring activities with fisheries personnel from other agencies to avoid duplication of effort and unnecessary stress to SAS. Specific stream reaches will be electrofished no more than once every 3 months. viii. Only direct current or pulsed direct current will be used. ix. Each session will begin with pulse width and rate set to the minimum needed to capture SAS. These settings will be gradually increased, if necessary, only to the point where SAS are immobilized and captured. Initial pulse width will be no more than 500 microseconds and is not to exceed 5 milliseconds. Care will be taken when exceeding a pulse rate of 30 Hertz. In general, exceeding 30 Hertz will injure more fish. x. Fish will be netted and removed from the electric fields as quickly as possible. xi. Sampling will be terminated if injuries or abnormally long recovery times are observed. Ms. Lily Lee (16B0182-17F0387-R002) 21 xii. Prior to activities that may involve handling SAS, all biologists will ensure that hands are free of sunscreen, lotion, or insect repellent. xiii. Handling may involve taking length and weight measurements to assess size and age classes of individuals and fish health, and will require minimal exposure out of water. Bagged portions of seines and nets will remain in that water until all SAS are removed, or SAS will be transferred to shallow containers of clean water, aerated if necessary, and placed in a location that will not result in exposure to extreme temperatures. xiv. Any SAS exhibiting signs of physiological stress will be immediately released at the point of capture or as close to that location as possible. All fish will be returned in good condition to the point of capture unless an adverse disturbance is occurring, in which case they may be relocated away from disturbance areas and moved to the nearest part of the stream with appropriate habitat. Nets may be used to temporarily preclude individuals from returning to the immediate capture site. xv. In the event that the number of individuals allowed to be incidentally injured or killed is exceeded during the performance of permitted activities, the Qualified Biologist must immediately cease the activity until reauthorized by the Carlsbad Fish and Wildlife Office (CFWO) or PSFWO. 2. In addition to the CMs outlined in this biological opinion, when capturing SAS for captive rearing and translocation purposes, the Qualified Biologist will implement the measures discussed in the Draft Captive Breeding and Translocation Plan for Santa Ana Sucker (Dudek 2016a) and in the programmatic consultation for SAS recovery permits (USFWS 2015a) including but not limited to: a. A survey will be conducted to determine the general health of the donor SAS population prior to attempting collection for translocation purposes; b. To maximize genetic diversity within a collected population, SAS will be taken from multiple locations (e.g., pools/sampling areas) within a stream, as feasible; c. SAS will be visually examined for disease and signs of spawning (e.g., tubercles and lateral stripes). SAS with signs of disease, spawning, or behavior issues such as flashing or lethargy will not be used for translocation. In addition, fish with physical abnormalities, such as fungal lesions, white spot, skin hemorrhage or lesions, darkened skin, eroded fins, or excessive mucus production will also not be used in translocation. Ms. Lily Lee (16B0182-17F0387-R002) 22 REINITIATION NOTICE Reinitiation of consultation is required and will be requested by the Federal agency or by the Service, where discretionary Federal involvement or control over the action has been retained or is authorized by law and: 1.If the amount or extent of taking specified in the incidental take statement is exceeded; 2.If new information reveals effects of the action that may affect listed species or critical habitat in a manner or to an extent not previously considered; 3. If the identified action is subsequently modified in a manner that causes an effect to the listed species or critical habitat that was not considered in this biological opinion; or 4.If a new species is listed or critical habitat designated that may be affected by the identified action. If you have any questions about this biological opinion, or the consultation process, please contact William Sherwin of the Palm Springs Fish and Wildlife Office, 777 E. Tahquitz Canyon Way, Suite 208, Palm Springs, California 92262 at 760-322-2070, extension 409. Sincerely, Rollie White Assistant Field Supervisor For KARIN CLEARY-ROSE Digitally signed by KARIN CLEARY-ROSE Date: 2022.01.03 13:25:08 -08'00' In Reply Refer to: 23-0117201-S7-F-001 December 1, 2023 Sent Electronically Lily Lee Manager, Infrastructure Section U.S. Environmental Protection Agency, Region IX 75 Hawthorne Street San Francisco, California 94105 Attention: Jillian Bletz and Cedric Irving Subject: Amendment to the Biological Opinion for the Proposed Sterling Natural Resource Center, San Bernardino, California Dear Lily Lee: The U.S. Fish and Wildlife Service (Service) issued a biological opinion (FWS-SB-16B0182- 17F0387) to the Environmental Protection Agency (EPA) for the Proposed Sterling Natural Resource Center (Project) on March 9, 2017, addressing impacts to the federally endangered San Bernardino kangaroo rat (Dipodomys merriami parvus; SBKR) and the federally threatened Santa Ana sucker (Catostomus santaanae; sucker) and their respective designated critical habitats. On August 1, 2023, we received an email from the EPA requesting reinitiation of consultation based on proposed changes to the Project Description related to Santa Ana sucker conservation measures. The East Valley Water District (EVWD) has proposed the changes to provide them flexibility in implementing sucker conservation measures and to achieve their stated objectives. This amendment addresses the proposed changes to the conservation measures for sucker. On November 14, 2023, we received an updated Supplemental Biological Assessment from EVWD which contained the final changes to the Project Description. The conservation measures and their changes are provided below. There are no proposed changes to the Project’s scope as it relates to our previous biological opinion on this project (FWS-SB-16B0182-17F0387-R002). This document was prepared in accordance with section 7 of the Endangered Species Act of 1973 (Act), as amended (16 U.S.C. 1531 et seq.). In our biological opinion (FWS-SB-16B0182-17F0387) we concluded that the permanent loss of designated sucker critical habitat would be offset by the creation and maintenance of habitat nodes and cooling of summer water temperatures in the Rialto Channel. Thus, the ecological function and values of designated critical habitat would be maintained in this critical habitat unit and within sucker designated critical habitat overall. We also concluded that the Project would Lily Lee (2023-0117201-S7-F-001) 2 offset its displacement of sucker and support the range-wide conservation (recovery) of sucker through enhancement of Santa Ana River aquatic and riparian habitats, reintroduction to portions of its historic range, and long-term management of existing and new populations. In the following paragraphs we list the proposed changes to the project conservation measures and subsequently we discuss why they do not affect sucker in a way that was not considered in our biological opinion (FWS-SB-16B0182-17F0387). A complete list of the conservation measures is provided in Appendix D. Revised Conservation Measures Changes are indicated in double underline and strikethrough text. Santa Ana Sucker SAS 21. The following measures will avoid, minimize, and offset Project-related impacts to SAS associated with up to 1.21 acres of permanent degradation of occupied designated critical habitat in the mainstem of the Santa Ana River from the RIX outfall downstream to approximately Mission Boulevard. a. Valley District will prepare and implement the HMMP which will identify habitat improvement actions and methods for implementation, monitoring, and maintenance. The diversion of wastewater flow from the RIX Facility to the SNRC will not occur until Valley District’s Santa Ana Sucker HMMP has been approved by the USFWS and the actions proposed in this measure have been completed or show evidence of significant progress toward successful implementation such as engineering design(s) and/or other regulatory compliance such as the California Environmental Quality Act, or consultation with the USFWS will be reinitiated. b. The HMMP will include the measures listed below to offset direct and indirect impacts to SAS and its habitat resulting from the loss of up to 22.3 percent (6.43 MGD of 28.4 MGD calculated from the November 2014 to May 2016 discharge) discharge from the RIX outfall into the Santa Ana River. The HMMP will contain measures to increase the number of individual SAS in the Santa Ana River, increase the area of suitable and occupied habitat in this watershed, and establish two new populations in the watershed. It will be implemented by a contracted, qualified, and permitted entity in coordination with the USFWS. The HMMP will specify goals and performance criteria for each conservation measure and include the following elements: i. Habitat Node Creation (microhabitat enhancements) to offset the potential reduction of suitable habitat available to sucker, including the above listed habitat features, resulting from decreased flow, decreased water velocity, and decreased sand transport. Lily Lee (2023-0117201-S7-F-001) 3 Objective: Increase the total area of suitable habitat available to sucker, including riffles, small scour pools, and exposed patches of gravel/cobble substrate by strategically placing a series of structures within the stream flow to manipulate water movement and create these microhabitat areas. This measure is expected to enhance perennial stream habitat within at least 1.5 acres of occupied habitat along about 2.5 miles of river, as measured in the fall by the area of pools created, gravel/cobble substrates exposed, and other functional SAS habitat features created/enhanced. The creation of a minimum of all 6 habitat nodes will occur prior to any water diversions. An additional 0.5 acre of microhabitat enhancements (total of 2.0 acres) will be maintained temporally during dry rainfall years (≤14.7 inches 1) until Upper Watershed Population Establishment has occurred (see Conservation Measure 21.b.v). If future data suggests that impacts to the species are either greater than expected or habitat nodes cannot be created to functionally offset Project impacts, the Project will obtain technical assistance from the USFWS to develop a new or revised CM that will achieve the biological objective(s) as analyzed in this opinion, or consultation with the USFWS will be reinitiated. The Project will implement microhabitat enhancements (habitat nodes) within ecologically valuable segments of the Santa Ana River downstream of the RIX discharge location (subject to landowner access permissions) to improve the abundance and distribution of the above-mentioned SAS habitat features. Enhancements will include the use of natural materials to increase scour and pool formation. Substrate augmentation (e.g., river gravel and cobble) may also occur in the same area to enhance perennial stream habitat function. Examples may include placement of large boulders and/or large woody debris to increase velocity of flow and gravel bar patches as well as deep pool refugia areas. A minimum of six habitat nodes will be created. One naturally occurring riffle/pool feature (natural node) in the Santa Ana River was observed to enhance the stream habitat for SAS for approximately 330 feet (100 meters, 0.25 acres). Between 2015 and 2016 the USGS Native Fishes Survey found that the relative abundance of exposed gravels increased in this area suggesting that the size of the affected area associated with the node is subject to fluctuate based upon environmental conditions and the abundance of fine sediment in 1 Measured in San Bernardino, California Lily Lee (2023-0117201-S7-F-001) 4 the inset channel (SAS occupied stream) (Brown and May 2016, 2017). Although all nodes will be unique in design, each will serve to replicate the scale and provide similar ecological functions as the natural node discussed above. The nodes will be located in the Santa Ana River mainstem between the RIX outfall and River Road Bridge. To maximize habitat value and function locations should be associated with mainstem tributaries (Evan’s Lake, Arroyo Tequesquite, Sunnyslope Drain, Anza Drain, Hole Creek, etc.). Locations will need to be further refined by field survey data. Habitat nodes will be monitored annually, and the survey data will be used to assess the need for corrective measures. Annual monitoring will include, at minimum, water quality, visual estimates of substrate cover types, and fish surveys. When the cumulative cover of boulder, cobble, and gravel is found to be less than 35 percent for any habitat node (mean cover measured over a 0.25-acre reach associated with a node), maintenance and/or reinstallation of nodes will be conducted to maintain a minimum of 0.25 acres of habitat enhancement for every node or a cumulative enhancement of 1.5 acres for all six nodes. An additional 0.5 acre (total of 2.0 acres) will be enhanced during dry rainfall years (≤14.7 inches) until Upper Watershed Population Establishment has occurred (see Conservation Measure 21.b.v). All work conducted in the Santa Ana River will be done in coordination with the USFWS and CDFW. If vegetation removal is required for ingress, egress, or other work areas associated with Habitat Node creation and maintenance it will be revegetated. Quantitative and qualitative performance standards addressing vegetation cover and diversity will be included in the HMMP. Within 3 and at most 5 years after commencing revegetation efforts, cover and diversity should have progressed toward pre-Project levels of cover and diversity, or higher quality for the benefit of vireo and SAS. It is not anticipated that maintenance work, requiring vegetation removal, will be needed more frequently than every 5 years. ii. Aquatic Predator Control Program to offset the potential increase in non-native predator habitat (pools or other microhabitats that provide relatively deep and slow velocity water flow) resulting from reduced discharge volume. Objective: Reduce the abundance of non-native predators in the reach of river affected by the Project so as to maximize native fish survival. The non-native predator removal program will be focused on reducing Lily Lee (2023-0117201-S7-F-001) 5 the abundance of non-native aquatic predators immediately preceding the start of the sucker spawning season (approximately March 1). Species to be removed may include non-native fish, amphibians, and reptiles such as mosquitofish, largemouth bass, black bullhead catfish, green sunfish, red-eared slider, African clawed frog, and American bullfrog. This activity will occur at minimum of two one times per year outside of the SAS spawning season (August 1 to February 28) until Upper Watershed Population Establishment has occurred (see Conservation Measure 21.b.v), at which point the effort will be reduced to a minimum of one time per year. The most recent fish and/or other surveys conducted upstream of Prado Basin in the Santa Ana River will provide the locations of where to conduct electroshocking. Electroshocking will be carried out by a USFWS-approved SAS biologist authorized to use electroshock sampling methods. Pre-spawning predator removal will occur annually prior to February 15 between Rialto Channel downstream to Van Buren Boulevard (or elsewhere along the mainstem Santa Ana River if determined beneficial to the species), focusing on in areas of highest ecological value to SAS reproduction, currently from Rialto Channel downstream to approximately Mission Boulevard and in mainstem tributaries. If aquatic predators are found in abundance after pre-spawning predator removal, one or more a second predator removals will be conducted after August 1. iii. Exotic Weed Management Program to reduce competitive stress for native vegetation within the riparian community in order to offset the impacts associated with reduced water availability resulting from the Project. Objective: Maintain a low abundance and cover of non-native vegetation along the Santa Ana River and in City Creek within the Project impact area (RIX outlet to Mission Boulevard, or as otherwise approved by the USFWS and Boulder Avenue to Alabama Street, respectively), focusing on the removal of giant reed, tamarisk, and castor bean. The exotic weed management program will be carried out by a qualified and experienced entity and will focus on controlling the non-native vegetation within the riparian corridor between the Rialto Channel and the Mission Boulevard Bridge (approximately 4.2 miles) or, depending on landowner permissions, along a similar length of river downstream of the Riverside County-San Bernardino County line (for example, Market Street Bridge downstream to Anza Creek, approximately 4.2 miles). This measure will establish and maintain weed control in one-third of the area (approximately 1.4 miles) per year, so as to Lily Lee (2023-0117201-S7-F-001) 6 complete the weeding of the entire area once every 3 years. Annual work plan meetings between the USFWS, Valley District staff, and contractor will identify areas of concern and focus work efforts on those areas. A successful program will maintain total cover of non-native riparian species to less than 25 percent and total cover of giant reed, tamarisk, and castor bean to less than 5 percent. Percent cover will be assessed relative the total area of the weeded riparian corridor for that year. Although they are native species, cattails (Typha spp.) and bulrush (Schoenoplectus spp.) may increase in abundance over time as their preferred habitat type (slow, shallow water or marsh) is expected to increase due to Project reductions of flow. These plant species may degrade sucker habitat by further reducing water velocity and trapping fine sediment. Problem areas will be identified as part of the Riverwalk survey (see below for more on Riverwalk survey) and if certain areas have become problematic, they will be managed in coordination with the USFWS and CDFW. SAS 4. High Flow Pulse Events 2. The HMMP will identify means to create high flow pulse events as needed based on substrate conditions, up to 2 times per year. The high flow pulse events would be designed to flush out fine sediment from the upstream reach of the affected river segment and would be implemented through a cooperative agreement with the City of San Bernardino Municipal Water Department and/or the City of Rialto. iv. Rialto Channel and/or Santa Ana River Water Temperature Management: Commit funding to contribute towards implementation of a water temperature amelioration strategy/measure (project) within Rialto Channel and/or the Santa Ana River to offset the potential loss of suitable habitat downstream in the Project impact area during times of the year when habitat will be most affected from the cumulative impacts from reduced discharge and drought effects, particularly in summer and fall. Proposed measures/strategies to reduce water temperature will be developed following completion of a larger-scale water temperature monitoring study (to be completed by the Upper Santa Ana River HCP applicants). Financial commitment will be outlined in the HMMP and reviewed and approved by the USFWS. 2 SAS 4 is stipulated in East Valley Water District’s Environmental Impact Report for this Project, and the Service has kept the numbering of this conservation measure consistent with that document. This measure was formerly a Conservation Recommendation. Lily Lee (2023-0117201-S7-F-001) 7 Objective: Reduce water temperatures in Rialto Channel and/or the Santa Ana River to tolerable levels (less than 86 degrees Fahrenheit) during summer months. Commit funding to contribute towards implementation of a proposed measure/strategy (project) to ameliorate Rialto Channel and/or Santa Ana River water temperatures. In recent years the temperatures within the natural bottom reach of Rialto Channel (not concrete lined section) were found to be generally greater than 80 degrees Fahrenheit in summer and fall (USGS 2015) and often warm enough to be outside of the tolerable range for sucker (USFWS 2010b). Areas of elevated water temperature have also been recorded in the Santa Ana River. A potential strategy In order to decrease the water temperature in Rialto Channel and/or the Santa Ana River to tolerable levels for SAS is to add supplemental flow from relatively cool groundwater (67–70 degrees Fahrenheit, temperature range derived from local nearby well operators), from up to 4 wells or other water sources will be added to the flows in Rialto channel. In order to implement this measure most effectively, To inform potential solutions to elevated water temperatures in Rialto Channel and the Santa Ana River, a water temperature study has been initiated by the Upper Santa Ana River HCP applicants. Results of these studies will be used to facilitate development of methodologies/strategies to ameliorate elevated water temperatures. Funds set aside in accordance with this measure will be used to implement future recommended methodologies/strategies generated by the water temperature studies (as approved by the USFWS).two water quality monitoring stations will be established in Rialto Channel. An upstream, real-time gage will measure the water temperature at the well input location (plunge pool downstream of Agua Mansa Bridge). At 85 degrees Fahrenheit the groundwater wells will automatically turn on and release directly into the plunge pool. Another real-time gage will be installed downstream of the plunge pool Rialto Channel just before the confluence with the Santa Ana River and. Once the water temperature at this downstream gage is less than 82 degrees Fahrenheit the well input will be turned off. Initiation and cessation of well water input (discharge) will be phased over a period of time to reduce sudden changes in flow and temperature in Rialto Channel. The well input and controls will be constructed and tested prior to Lily Lee (2023-0117201-S7-F-001) 8 diversion of flows from the RIX facility to the SNRC. This program will be deemed successful if there are 5 or fewer days between June 22 and September 21 that the daily maximum water temperature exceeds 82 degrees Fahrenheit and SAS are present in the channel during the same period. Water temperature will be measured in Rialto Channel upstream of the RIX outfall. If success criteria are not met within 2 years of signing the biological opinion, the Project will obtain technical assistance from the USFWS to develop a new or revised CM that will achieve the biological objective(s) as analyzed in this opinion. v. Upper Watershed SAS Population Establishment to offset potential losses of suitable habitat in the Project’s impact area, and to offset unknown and/or cumulative impacts to the species and its habitat that may be associated with the reduction of flow to the Santa Ana River. Objective: Increase the abundance, distribution, and resilience of the sucker population in the Santa Ana River Watershed by establishing redundant populations in upper watershed tributaries. Subject to the availability of sufficient source fish, the Project will establish two new locations of sucker within City Creek and Hemlock Creek, or another suitable unoccupied locations within the former range of the species within the Santa Ana River watershed as approved by the USFWS. Both City and Hemlock creeks have been analyzed as part of the Santa Ana Sucker Translocation Plan (Dudek 2016a, 2017). Valley District has assessed the habitat availability and appropriateness for SAS in City and Hemlock creeks (Dudek 2016b). These documents show that elements (PCEs) to support SAS, as well as additional factors found to be important to SAS (Aspen 2016). The Translocation Plan is currently under review by the USFWS, the CDFW, and the U.S. Forest Service (USFS). Prior to Project flow reduction to the Santa Ana River, at least one translocation of SAS will have occurred and Valley District will provide data indicating that the nascent population is healthy, reproducing, and appears to be successfully establishing. Successful establishment of SAS will have occurred when there are surviving and reproducing fish in at least two size classes, the population of SAS is Lily Lee (2023-0117201-S7-F-001) 9 stable or increasing in population as averaged over 5 years, and the translocated population is distributed throughout the appropriate habitat in the translocation stream1. If progress towards achievement of success criteria is not demonstrated within are not met in both translocation tributaries within 5 years of initial translocation, or has not been met within 10 years of translocation, signing the biological opinion, the Project will obtain technical assistance from the USFWS to develop a new or revised CM that will achieve the biological objective(s) as analyzed in this opinion. The HMMP will identify and further detail the goals and success criteria of SAS re-establishment. A financial security deposit, in an amount approved by USFWS and CDFW, will be established prior to Project flow reduction to the Santa Ana River, to provide assurances that the translocations will be implemented and monitored to demonstrate achievement of success criteria (progress towards achievement of success criteria demonstrated within 5 years of translocation, or met within 10 years of translocation). The HMMP will also describe and include the amount of financial assistance to be provided by East Valley Water District for the regionally beneficial population establishment program, including additional measures found below. A. East Valley Water District will contract with a USFWS-approved entity that can demonstrate the ability to re-introduce captively-bred SAS to a suitable unoccupied location with the intent of establishing a new self-sustaining population within the former range of the species on the Santa Ana River. The Contract requirements will include the following: (1) translocation of appropriate numbers and age classes of SAS rearing and maintaining a sufficient number of breeding adults to support re-introduction of a minimum of 500 juvenile SAS into the target area per year (subject to approval by or alternate numbers agreed to by the USFWS); (2) annual relocations for the first 3 years to supplement the population, then as needed to maintain a stable population size and genetic diversity; and (3) monitoring, adaptive management, and annual reporting. Lily Lee (2023-0117201-S7-F-001) 10 B. East Valley Water District may only reintroduce captive-bred SAS if (1) captive breeding, and all associated permitting and documentation has been approved by the USFWS and CDFW and (2) the captive breeding facility has adequate numbers of appropriate sized SAS. If these conditions are not met or if additional fish are needed for translocation purposes SAS may be translocated from the Santa Ana River to the west fork of City Creek and one other historic tributary in the Santa Ana River watershed. C. If, at any time, SAS are found located downstream Highland Avenue Bridge, East Valley Water District will be responsible for relocating all SAS back upstream within the boundaries of the San Bernardino National Forest or out of locations that where their presence might affect other entities who do not have incidental take exemptions for this species. This measure will be implemented for the life of the Project or until another entity, such as the HCP, takes over this responsibility. Discussion Conservation measure SAS 21.b.i. will be modified to give EVWD flexibility in enhancement area to account for landowner access permissions and increase the area of habitat enhanced/maintained for sucker. This measure now includes a minimum of 6 habitat nodes and an additional 0.5 acre of habitat will be enhanced during low rainfall years, resulting in more benefits to sucker than the original conservation measure. We have already analyzed the effects of habitat node creation on sucker and its designated critical habitat, and the proposed changes to this conservation measure would continue to offset effects to sucker designated critical habitat through the creation of habitat nodes. Since it is a low impact activity, we do not expect additional adverse effects to sucker or its designated critical habitat from additional habitat node creation. Revised conservation measure SAS 21.b.ii., aquatic predator removal, will double the number of predator removal events until conservation measure SAS 21.b.v. is implemented. This conservation measure would continue to benefit the long-term conservation management of sucker in its current range, and the doubled efforts leading up to upper watershed population is expected to result in a reduction of predation on sucker, providing an additional conservation benefit in the short-term. Moreover, the effects of recovery actions including aquatic predator removal have been addressed in our programmatic biological opinion (FWS-CFWO-14B0113-14F0171). The changes to conservation measure SAS 21.b.iii, will allow EVWD to shift the weed management area to suit land access permissions. The length of river miles to be enhanced remains unchanged, and the revision would not reduce the conservation value of the exotic Lily Lee (2023-0117201-S7-F-001) 11 weed management program for the Project. Since it is a low impact activity, we do not expect additional adverse effects to sucker or its designated critical habitat from the changes in the exotic weed management program. The changes to conservation measure SAS 21.b.v., upper watershed sucker population establishment, will give EVWD flexibility in implementation timing to address downstream landowner concerns. A financial security will be established to provide assurances that translocations and achievement of success criteria will occur. Therefore, range expansion will be delayed and may represent a temporal loss of conservation value and a delay in this recovery action. However, the delay would be offset by the temporal benefits of the doubled predator control efforts and increased habitat node creation. The EVWD will establish a financial security deposit prior to diverting water and the HMMP is being finalized for approval by the Service. We do not expect additional adverse effects to sucker, or its designated critical habitat, from the delay in implementing this recovery action. Moreover, the effects of recovery actions including translocation of sucker within its historic range have been addressed in our programmatic biological opinion (FWS-CFWO-14B0113-14F0171). The EVWD has decided to incorporate a conservation recommendation in our biological opinion (FWS-SB-16B0182-17F0387), conservation measure SAS 4, high flow pulse events. This is an additional conservation value for sucker and its designated critical habitat. This conservation measure will benefit sucker and its critical habitat by increasing the surface area of foraging and spawning habitat by exposing gravels and cobbles. EVWD has cooperated with the Service and both Rialto and the RIX treatment facilities (sometimes together, or independently) in the past to facilitate shutdowns at specific dates and times for nonnative aquatic species control efforts. The additional benefit following the predator control effort is flushing flows. The effects of this conservation measure would coincide with the planned shutdown/maintenance events of the RIX water treatment facility; therefore, the effects of this conservation measure are addressed by the RIX HCP and our biological opinion for that project. A number of constraints have made it necessary for EVWD to revise conservation measure SAS 21.b.iv., Rialto Channel and Santa Ana River Water Temperature Study and Amelioration Management Plan. Those constraints include the lack of willing landowners to sell or lease property; the presence of Delhi Sands flower-loving fly habitat adjacent to Rialto Channel; and the close proximity to the City of San Bernardino’s wastewater treatment plant and the potential for a well to interfere with their operations. New data received from the City of Rialto comparing influent and effluent water temperature from the City of Rialto’s treatment plant identified that wastewater is entering the Rialto treatment plant at high temperatures. This discovery raised the question of whether it might be better to identify locations within Rialto’s wastewater pipeline system where mitigation measures could be implemented to reduce temperatures prior to reaching the treatment plant. Action to reduce water temperatures would be delayed for 3 years to investigate and recommend potential measures to ameliorate water temperatures. This change represents a temporal loss of conservation value and a delay in a recovery action. However, based on new information we no longer see the elevated water temperatures present at Rialto Channel as an obvious source of Lily Lee (2023-0117201-S7-F-001) 12 adverse effects to sucker. Cooler water could likely benefit sucker over the long term; however, sucker have been observed this year in higher numbers in the warmer mainstem of the river and lower numbers of the cooler RIX outflow, even though the RIX outflow is accessible to sucker. Notably, since October 2022, flow from Rialto Channel has been disconnected from the mainstem of the river ever since a major storm event caused it to jump its bank. Consequently, Rialto Channel water is now separate from the RIX outflow except during high flow events such as storms or during unusually high water-years, such as the water-year 2023, when the Santa Ana River is perennially flowing from the Seven Oaks Dam. For the period that the separation persists, during high flow years, Rialto may mingle with the RIX outflow but the effect of warm water from Rialto Channel becomes difficult to measure since the water coming from upriver is highly turbid and therefore prone to high temperature spikes during hot days. Conversely, during normal or low water-years the effect of warm water from Rialto Channel would be nullified by the fact that the two tributaries are disconnected, since Rialto Channel water permeates into the riverbed before mingling with RIX surface water. Notwithstanding existing circumstances and new information, EVWD has committed $1,000,000 of funding for the construction of a well adjacent to the Santa Ana River that would discharge cool water into the river as part of their 1600 Streambed Alteration Agreement with California Department of Fish and Wildlife as a strategy to decrease surface water temperature. In summary, we have considered the changes that EVWD has decided to make. Considering the most recent available information, we have concluded that the revised conservation measures do not affect sucker in a way that was not considered in our biological opinion (FWS-SB-16B0182- 17F0387), and the revised measures do not provide less conservation value to sucker and its designated critical habitat than the originally analyzed measures. We do not expect the revisions to result in adverse effects to sucker or its designated critical habitat that we did not already analyze in our biological opinion (FWS-SB-16B0182-17F0387). REINITIATION NOTICE Reinitiation of consultation is required and will be requested by the Federal agency or by the Service, where discretionary Federal involvement or control over the action has been retained or is authorized by law and: 1. If the amount or extent of taking specified in the incidental take statement is exceeded; 2. If new information reveals effects of the action that may affect listed species or critical habitat in a manner or to an extent not previously considered; 3. If the identified action is subsequently modified in a manner that causes an effect to the listed species or critical habitat that was not considered in this biological opinion; or 4. If a new species is listed or critical habitat designated that may be affected by the identified action. Lily Lee (2023-0117201-S7-F-001) 13 Any questions or comments should be directed to William Sherwin 3 of my staff at 760-322-2070. Sincerely, Scott A. Sobiech Field Supervisor Revised Appendix D (sep cover) 3 William_sherwin@fws.gov for Karin Cleary-Rose Digitally signed by Karin Cleary-Rose Date: 2023.12.01 14:48:17 -08'00' CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE INLAND DESERTS REGION 3602 INLAND EMPIRE BLVD., C-220 ONTARIO, CALIFORNIA 91764 STREAMBED ALTERATION AGREEMENT EPIMS-SBR-42496-R6 SANTA ANA RIVER EAST VALLEY WATER DISTRICT STERLING NATURAL RESOURCES CENTER This Streambed Alteration Agreement (Agreement) is entered into between the California Department of Fish and Wildlife (CDFW) and East Valley Water District (Permittee), or as represented by Jeff Noelte. RECITALS WHEREAS, pursuant to Fish and Game Code section 1602, Permittee notified CDFW on July 26, 2023 that Permittee intends to complete the project described herein. WHEREAS, pursuant to Fish and Game Code section 1603, CDFW has determined that the project could substantially adversely affect existing fish or wildlife resources and has included measures in the Agreement necessary to protect those resources. WHEREAS, Permittee has reviewed the Agreement and accepts its terms and conditions, including the measures to protect fish and wildlife resources. NOW THEREFORE, Permittee agrees to complete the project in accordance with the Agreement. PROJECT LOCATION The Sterling Natural Resources Center project (Project) is located within the Santa Ana River, at the San Bernardino City Municipal Water Department’s Rapid Infiltration and Extraction Facility (RIX), in the City of Colton, County of San Bernardino, State of California; Latitude 34.041337, Longitude -117.354514; Assessor’s Parcel Number (APN) 0260-081-22 (Exhibit 1). PROJECT DESCRIPTION The Project is limited to the reduction of 6 million gallons of tertiary-treated discharge from the RIX facility to the Santa Ana River per day and habitat creation, restoration, and/or enhancement activities related to compensatory mitigation requirements. East Valley Water District (EVWD) recently completed construction of a new treatment plant (Sterling Natural Resources Center), therefore all wastewater generated within the EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 2 of 21 EVWD’s service area and treated at the RIX facility will now be diverted and treated at the Sterling Natural Resources Center facility. The RIX facility currently discharges 28.5 million gallons of water per day (MGD) into the Santa Ana River. According to the Reduced Discharge Study analysis completed for Wastewater Change Petition WW0095, the reduction of 6 MGD will affect approximately 4 miles of hydrology and ecology at the Santa Ana River, from the RIX facility downstream to Mission Bridge. Rising groundwater at the Mission Bridge is expected to persist unaffected by Project related reduction and continuing downstream to Prado Basin. The reduction of 6 MGD from the RIX facility will reduce total flow by 18-21 percent, lower water depth in the channel by a maximum of 1.1 inche s, reduce the wetted area by 6 percent, and result in an average change in velocity class of 2 percent. Stream width will also be reduced by 3 percent, with riparian vegetation expected to encroach and hang over stream channel. There are no ground-disturbing activities associated with this Project. PROJECT IMPACTS Existing fish or wildlife resources the project could substantially adversely affect include: BIRDS: least Bell’s vireo (Vireo bellii pusillus), Cooper’s hawk (Accipter cooperi); FISH: Santa Ana sucker (Catostomus santaanae); HABITAT: Riparian wetland. The adverse effects the project could have on the fish or wildlife resources identified above include: loss of fluvial processes and sediment transport, reduced water depth, width and velocity, change in contour of channel, decline of vegetative diversity, loss of riparian habitat, direct loss of resources for aquatic organisms, loss of foraging habitat, increased risk of predation. This Agreement authorizes no more than 1.3 acres of impacts Fish and Game Code section 1602 resources. If any additional impacts to Fish and Game Code section 1602 resources are anticipated, Permittee shall, in coordination with CDFW, submit a new notification or apply for an amendment to this Agreement for authorization of those impacts. MEASURES TO PROTECT FISH AND WILDLIFE RESOURCES 1. Administrative Measures Permittee shall meet each administrative requirement described below. 1.1 Documentation at Project Site. Permittee shall make the Agreement, any extensions and amendments to the Agreement, and all related notification materials and California Environmental Quality Act (CEQA) documents, readily available at the project site at all times and shall be presented to CDFW personnel, or personnel from another state, federal, or local agency upon request. EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 3 of 21 1.2 Providing Agreement to Persons at Project Site. Permittee shall provide copies of the Agreement and any extensions and amendments to the Agreement to all persons who will be working on the project at the project site on behalf of Permittee, including but not limited to contractors, subcontractors, inspectors, and monitors. 1.3 Notification of Conflicting Provisions. Permittee shall notify CDFW if Permittee determines or learns that a provision in the Agreement might conflict with a provision imposed on the project by another local, state, or federal agency. In that event, CDFW shall contact Permittee to resolve any conflict. 1.4 Project Site Entry. Permittee agrees that CDFW personnel may enter the project site at any time to verify compliance with the Agreement. 1.5 Compliance with Other Agencies. The Agreement does not relieve the Permittee of responsibility for compliance with applicable federal, state, or local laws, ordinances, or grant conditions. 1.6 Additional Project Impacts. Permittee shall submit to CDFW a request to amend this Agreement if any additional projects or impacts subject to Fish and Game Code section 1602 not identified in this Agreement are anticipated. No additional impacts subject to Fish and Game Code section 1602 are authorized unless the projects and/or impacts are expressly authorized by CDFW by amendment to this Agreement. 1.7 Take of Listed Species. The issuance of this Agreement does not authorize the take, incidental or otherwise, of any state or federally listed threatened, endangered, candidate or fully protected species. Take of any California Endangered Species Act (CESA) listed species is prohibited except as authorized by state law (Fish and G. Code, §§ 2080 & 2085). Consequently, if a project, including project construction or any project-related activity during the life of the project, may result in take of CESA-listed species, CDFW recommends that the project proponent seek appropriate authorization prior to project implementation. This may include an incidental take permit (ITP) or a consistency determination (Fish & G. Code, §§ 2080.1 & 2081). 1.8 Take of Nesting Birds. Fish and Game Code section 3503 makes it unlawful to take, possess, or needlessly destroy the nest or eggs of any bird, except as otherwise provided by Fish and Game Code or any regulation made pursuant thereto. Fish and Game Code section 3503.5 makes it unlawful to take, possess, or destroy any birds in the orders Falconiformes or Strigiformes (birds -of-prey) to take, possess, or destroy the nest or eggs of any such bird except as otherwise provided by Fish and Game Code or any regulation adopted pursuant thereto. The issuance of this Agreement does not in any way exempt or excuse compliance with these statutes. EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 4 of 21 2. Avoidance and Minimization Measures To avoid or minimize adverse impacts to fish and wildlife resources identified above, Permittee shall implement each measure listed below. 2.1 Designated Biologist. Permittee shall submit to CDFW for review and approval the name, contact information, and qualifications of each biologist, botanist, or other specialist (Designated Biologist(s)) proposed to perform surveys and/or conduct monitoring activities addressed by this Agreement. Permittee shall specify within these submittals which activities each Designated Biologist is being considered for, and clearly identify the qualifications and experience they possess to support the assignment. Permittee shall also ensure that handling of non-listed fish, wildlife, or plant species is conducted only by Designated Biologists approved by CDFW in writing. Handling of state-listed species will require CESA authorization. Permittee shall submit the aforementioned information at least 30 days before commencement of Project activities addressed by this Agreement. Permittee shall notify CDFW in advance and in writing if a Designated Biologist must be changed to a person not previously proposed for the Project. 2.2 Responsibility of Designated Biologist(s). The Designated Biologist(s) shall be responsible for monitoring activities addressed by this Agreement, including, but not limited to all activities that result in clearing, grading, excavation, and/or other ground-disturbing activities. To ensure compliance with the measures of this Agreement, the Designated Biologist(s) shall confirm and monitor the limits of Project activities addressed by this Agreement. 2.3 Authority of Designated Biologist. To ensure compliance with the measures of this Agreement, the Designated Biologist(s) shall immediately halt any activity that does not comply with this Agreement, and/or order any reasonable measure to avoid the violation of, or maintain compliance with, any measure of this Agreement. The Designated Biologist(s) shall not have the authority to handle any listed species (e.g., threatened, endangered, candidate) and must halt construction and notify CDFW immediately if any listed species identified within or adjacent to the Project area and could be impacted by the Project. If compliance with any measure of this Agreement fails or if the measures of this permit are violated, Permittee shall notify CDFW immediately in writing at R6LSAreporting@wildlife.ca.gov with a cc to Lisa.Cardoso@Wildlife.ca.gov, and contact Lisa Cardoso at (805) 712-0346. 2.4 Access Routes and Work Areas. The Designated Biologist(s) shall establish and delineate work areas and access routes, within those areas and routes identified in the notification, to minimize impacts to sensitive resources to the greatest extent feasible. The Designated Biologist(s) shall clearly demarcate, using non-ground- disturbing methods, the prescribed work areas and access routes, and any necessary avoidance areas, including an appropriate buffer. If Permittee determines that alternative access routes or work areas, beyond those described in the notification, are necessary, the Designated Biologist(s) or Permittee shall EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 5 of 21 contact CDFW for written approval prior to utilizing the alternative route. CDFW may require an amendment to this Agreement if Project modifications are required. 2.5 Santa Ana Sucker. This Agreement does not authorize the handling, translocation, or holding of the Santa Ana sucker (SAS), apart from Moving out of Harm’s way (Measure 2.7). Under Fish and Game Code § 650, CCR, Title 14, a Scientific Collecting Permit (SCP) is required to conduct any activities that pertains to fish and wildlife, including the SAS. To conduct an activity that involves the SAS, the Permittee shall submit an SCP that will be reviewed by CDFW. 2.6 Biological and Hydrological Monitoring. Permittee shall monitor biological and hydrological resources prior to and post-Project activity. The monitoring will encompass two efforts, and associated monitoring: 2.6.1 One biological assessment will be focused on aquatic resources. The assessment will be completed in the fall, prior to Santa Ana sucker spawning season, and prior to the start of Project activity, within the 4-mile stretch of the Santa Ana River that will be impacted by the decrease of water output. This survey will be used as a reference for future surveys and will encompass: 1) native fish surveys using standardized protocols, 2) measurements of in-stream habitat substrate conditions (cover of substrate type), 3) measurements of stream-adjacent habitat conditions, 4) hydrology (including stream flow, width, and wetted area), and 5) photographs. The effort will produce data on native fish diversity and abundance. 2.6.2 The second biological assessment will consist of riparian bird surveys. Surveys will be conducted during the spring and summer prior to the start of Project activity. 2.6.3 Following Project completion, post-Project biological assessments shall be conducted annually, consistent with baseline survey assessments (including seasonal timing and variables collected), for a minimum of ten years. Pre- and post- conditions will be assessed and reported to CDFW as described in Measure 4.2. 2.7 Moving out of Harm’s Way. To reduce direct injury and mortality, the Designated Biologist(s) shall be at the Project site prior to and during all habitat creation and/or restoration activities to move or allow to move out of harm’s way any non-listed wildlife that would otherwise be injured or killed from Project-related activities. Movement of wildlife out of harm’s way should be limited to only those individuals that would otherwise by injured or killed, and individuals should be moved only as far a necessary to ensure their safety. EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 6 of 21 2.8 Best Management Practices. Permittee shall actively implement Best Management Practices (BMPs) to prevent erosion and the discharge of sediment and pollutants into streams during project activities. Permittee shall monitor and repair BMPs if necessary, to ensure maximum erosion, sediment, and pollution control. Permittee shall prohibit the use of erosion control materials potentially harmful to fish and wildlife species, such as mono-filament netting (erosion control matting) or similar material, within and adjacent to areas subject to Fish and Game Code section 1602. All fiber rolls, straw wattles, and/or hay bales utilized within and adjacent to the project site shall be free of nonnative plant materials. Fiber rolls or erosion control mesh shall be made of loose-weave mesh that is not fused at the intersections of the weave, such as jute, or coconut (coir) f iber, or other products without welded weaves. Non-welded weaves reduce entanglement risks to wildlife by allowing animals to push through the weave, which expands when spread. 3. Compensatory Measures Upon monitoring the acreage of impacts created from Project activities during a ten year span, total impacts shall not exceed 1.3 acre. To compensate for adverse impacts to fish and wildlife resources identified above, Permittee shall implement each measure listed below. 3.1 Aquatic Habitat Creation (Permittee Responsible Mitigation). No later than 12 months following the initiation of Project activities, Permittee, shall enhance a minimum of 2-acres of streambed-associated habitat for the benefit of Santa Ana sucker, as measured in the fall, along approximately 2.5 miles of the Santa Ana River as described in a CDFW-approved Santa Ana Sucker Habitat Mitigation and Monitoring Plan (SAS HMMP; Measure 3.6). Nodes will be installed in stream reaches lacking suitable habitat for one or more life stages of Santa Ana sucker. Enhancements will include the use of natural materials to increase scour and pool formation, substrate augmentation may also occur to enhance perennial stream function. There will be no additional impacts created from on-site habitat creation such as vegetation removal, grading, trenching, etc. Permittee shall monitor habitat nodes as described in the CDFW-approved SAS HMMP, with reports submitted to CDFW per Measure 4.2. Survey data will be used to assess the need for corrective measures. 3.2 Habitat Enhancement (Permittee Responsible Mitigation). Permittee shall develop and implement a habitat enhancement program along no less than 4.2 miles of the Santa Ana River. Habitat “enhancement” may include removal of nonnative plant species, trash, and debris. Maintenance and monitoring activities shall be defined, in detail, in the CDFW-approved SAS HMMP (Measure 3.6). An Annual Report shall be completed and submitted to CDFW once annual enhancement is EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 7 of 21 completed pursuant to Measure 4.2. CDFW approval of the SAS HMMP is required prior to the initiation of Project activities. 3.3 Off-site Permittee Responsible Mitigation. Permittee shall create, or rehabilitate and enhance, conserve (through the recordation of a CDFW-approved conservation easement, as appropriate), and perpetually manage with a Permittee- funded and CDFW-approved endowment (or other CDFW-approved funding instrument) a total of 3.9 acres of streambed and adjacent riparian habitat, at the CDFW-approved Hidden Valley Creek Project site (Notification No. 1600-2020- 0035-R6) (termed herein as ‘Mitigation Area’). Permittee shall follow CDFW-approved templates and shall provide all necessary, supporting title and funding documents to CDFW for review and approval, including a Property Analysis Record (PAR) or other PAR-like analysis to identify costs associated with long-term management (see Measure 3.4), and the overall endowment requirement. 3.4 Long-Term Management Plan. Permittee shall prepare, or fund the preparation of, a long-term management plan (LTMP) designed to sustain or surpass the habitat quality of the Mitigation Area at CDFW “sign-off” in perpetuity. At a minimum, the LTMP shall identify: (1) an description of the physical conditions of the Mitigation Area expected upon achieving Mitigation Area HMMP success criteria, including water resources and habitat types, and a map that identifies the location of the site; (2) goals related to sustaining habitat quality, wildlife usage, and overall function of the Mitigation Area; and (3) management strategies proposed to meet those goals, including: (a) a monitoring and maintenance schedule and (b) list of contingency measures. The CDFW approved land manager shall be responsible for implementing the LTMP and shall submit a Management Report every year documenting, at a minimum: (1) management activities completed within the previous 12-month term, including: (a) any remedial measures completed; (b) details of non-native species removal; and (c) enforcement activity necessary; (2) an assessment of overall habitat quality within the Mitigation Area, including: (a) percent non-native vegetation cover, (b) any shifts in habitat type, (c) any loss of habitat cover, (d) any change in water resources, and (e) any new non-native species observed ; (3) an evaluation of the success or failure of management strategies implemented, and any changes to management strategies proposed in response to the successes or failures. The Management Report shall include photos documenting the management activities. Permittee shall submit the LTMP to CDFW for review and approval within 12 months of the initiation of Project activities. 3.4.1 Property Analysis Record for Long-Term Management of Mitigation Lands. Within one (1) year of final signature of this Agreement, the Permittee shall prepare a PAR or PAR-equivalent analysis to calculate the amount of funding necessary to ensure long-term management for the mitigation site subject to this Agreement. The PAR will be reviewed and approved by EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 8 of 21 CDFW in coordination with the CDFW-approved conservation entity to determine the management needs and costs described above, which then will be used to calculate the amount of capital needed for the management fund. This management fund shall be held and managed by an entity approved by CDFW. 3.5 Habitat Mitigation and Monitoring Plan (Off-site Permittee Responsible Mitigation). The Permittee shall submit to CDFW for review and written approval, no later than 30 days prior to initiation of Project activities, a Habitat Mitigation and Monitoring Plan (HMMP) outlining the creation, rehabilitation, and or enhancement activities that will occur on the 3.9-acre off-site Mitigation Area (Measure 3.3). The HMMP shall be prepared by a restoration specialist with expertise in restoration of native plants in southern California ecosystems and native plant revegetation techniques, the restoration specialist will monitor all plantings, maintenance, monitoring and reporting activities. This plan shall include plantings of both overstory and understory vegetation. The plan shall include at a minimum 1) a hydroseed mix appropriate to wetland and riparian vegetation within the Project area, consisting entirely of seeds of native species, 2) a planting palette, including tree species being removed from the Project site, 3) invasive species control measures, 4) a description of the proposed numbers, container sizes, and planting locations, by species, of plants proposed for installation at the Mitigation Area, 5) the proposed monitoring activities (e.g., locations, techniques, scheduling), 6) a description of all maintenance operations, with particular emphasis on watering methods and schedules; and 7) any/all other references to revegetation and restoration activities specified by this Agreement. All procedures shall be approved by CDFW in writing. The primary monitoring surveys shall be conducted in Spring and Fall, and an annual quantitative survey shall be performed to determine the success of restoration efforts (survival, cover and growth of plants). Additional Information the HMMP shall provide includes: 3.5.1 Baseline Data. A baseline of the vegetation types within Project and Mitigation Area using quantitative data (e.g. vegetation cover, density, and species diversity) shall be collected and analyzed using a CDFW approved sampling method (e.g. quadrats, transects, or releve). 3.5.2 Physical Conditions. A description of the physical conditions of the Mitigation Area, including (i) a map and (ii) GIS shapefiles; 3.5.3 Success Standards. Success standards using approved sampling techniques (e.g. transects, releve, etc.) that provides quantitative/ qualitative data (e.g. diversity indices, vegetation relative/absolute cover, survivorship, etc.) as determined within the approved HMMP; and 3.5.4 Source Plant Material. Plant Material for revegetation methodology to be derived from cuttings, materials salvaged from disturbed areas, and/or seeds obtained from randomly selected native trees and shrubs occurring EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 9 of 21 locally within the same drainage system. Any replacement tree/shrub stock, if used, which cannot be grown from cuttings or seeds, shall be obtained from a native plant survey, be ant-free, and shall not be inoculated to prevent heart rot. 3.5.5 Nonnative Vegetation. Cover of invasive nonnative plants listed in the California Invasive Plant Council’s Invasive Plant Inventory: http://www.cal-ipc.org/ip/inventory/index.php shall be as followed: 3.5.5.1 Nonnative perennial species (Cal-IPC threat of High or Moderate) <5% 3.5.5.2 Nonnative annual species (Cal-IPC threat of High or Moderate) ≤5%; and 3.5.5.3 Other nonnative plant species <10%. 3.5.6 Contingency measures. Corrective actions to be taken or alternative areas when mitigation measures do not meet the proposed targets , including but not limited to, performing modifications to the existing habitat, creation of new habitat on or offsite, or purchase of mitigation credits from a mitigation bank for that portion of the Mitigation Area that has not met the criteria. Any contingency actions will be determined in coordination with, and approved by, CDFW. If Permittee proposes to meet the success criteria through modifications to the existing habitat or creation of additional habitat, Permittee shall be responsible for maintaining and monitoring these areas with the same survival and growth requirements for 5 years after planting, or until CDFW deem the sites successful. 3.5.7 Mitigation and Monitoring Reports. Permittee shall have the qualified restoration specialist monitor the recovery of plant, wildlife, and aquatic resources in the area following mitigation implementation. Monitoring of plant, wildlife, and aquatic resources shall be done at least twice a year as outlined in the HMMP, through the term of restoration. The results and analysis shall be submitted annually to CDFW by February 1 of each year after mitigation implementation for at least 5 years and until mitigation success criteria have been met. This report shall include the status and any success trends (i.e., comparison throughout the 5 years of monitoring) for the success criteria outlined in the HMMP. Photos from designated photo stations shall be included. 3.5.8 HMMP Success Criteria. The HMMP shall identify the success criteria for the habitats specified above and shall compare against an appropriate reference site with as good or better-quality habitat than the pre-Project impact site. The reference site shall be approved by CDFW. The success EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 10 of 21 criteria shall include percent cover (invasive and native vegetation), species diversity, and any other measures of success deemed appropriate by CDFW. Success criteria shall be separated into vegetative layers (tree, shrub, grass, and forb), and each layer shall be compared to the success criteria of the reference site to ensure one species or layer does not disproportionally dominate a site, but instead mimic the conditions of the reference site. Permittee shall be responsible for any cost incurred during the restoration/mitigation or in subsequent corrective measures. 3.5.9 Mitigation Success. After the fifth monitoring year, if the site has met the success criteria outlined in the HMMP, CDFW may request a site visit to determine if the mitigation portion of the agreement is deemed complete. The site should be free of trash and any irrigation infrastructure shall be removed if it was used. 3.6 Santa Ana Sucker. Permittee will submit a SAS HMMP for the following proposed activities, with details of each activity to be submitted, reviewed, and approved by CDFW. Permittee will acquire a Scientific Collecting Permit for the activities listed below. 3.6.1 Aquatic Predator Control. A minimum of two aquatic predator control efforts will occur annually, in-perpetuity, within the upper Santa Ana River watershed, including the created habitat nodes. Upper Watershed Santa Ana Sucker Establishment. Translocation of SAS to tributary streams within the species historic range as approved by and consistent with a USFWS and CDFW-approved SAS Translocation Plan. A financial security deposit, in an amount approved by USFWS and CDFW, will be established prior to Project flow reduction to the Santa Ana River, to provide assurances that the translocations will be implemented and monitored to demonstrate achievement of success criteria (progress towards achievement of success criteria demonstrated within 5 years of translocation, or met within 10 years of translocation) 4. Reporting Measures Permittee shall meet each reporting requirement described below. 4.1 Biological Monitoring Reports. Permittee shall prepare and submit pre- and post- Project biological monitoring reports as described in Measure 2.6. Annual Reports are to be submitted within 30 days of monitoring completion. 4.2 Annual Reporting – Aquatic Habitat Creation, Santa Ana River Habitat Enhancement, and SAS HMMP. Permittee shall submit annual reports to CDFW EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 11 of 21 as described in the SAS HMMP (which encompasses Measure 3.1 Aquatic Habitat Creation, and Measure 3.2 Habitat Enhancement (along the Santa Ana River). 4.3 Notification to CNDDB. If any sensitive species (rare, threatened, endangered, candidate, fully protected, species of special concern, etc.) are observed on or in proximity to the Project site, or during Project surveys, Permittee shall submit California Natural Diversity Data Base (CNDDB) forms and maps to the CNDDB within five working days of the sightings. The CNDDB form is available online at: https://www.wildlife.ca.gov/Data/CNDDB/Submittign-Data. A copy of this information shall also be mailed or emailed within seven days to CDFW at the address or email listed below under Contact Information. Please reference Notification No. EPIMS-SBR-42496-R6. 4.4 Notification of Start of Project Activity. Permittee shall notify CDFW, in writing, of Project initiation and Project completion. Notification shall be sent at least 14 days prior to Project initiation, and 14 days following Project completion. Notification shall be emailed to R6LSAReporting@Wildlife.ca.gov. 5. Financial Security Permittee shall provide financial security in the form of a Letter of Credit (LOC) (Exhibit 2), or other form of security approved by CDFW, for an amount sufficient for CDFW or its contractors to complete and perform all compensatory and reporting measures pursuant to this Agreement, prior to commencement of Project activities. 5.1 The amount of the LOC, or other form of security approved by CDFW, shall be based on a cost estimate that shall be submitted to CDFW for approval no less than 60 days prior to commencing project activities within areas subject to Fish and Game Code section 1602. 5.2 Once the amount of the financial security is approved by CDFW, Permittee shall provide a draft copy of the LOC, or other form of security approved by CDFW, to CDFW at the address listed below for review and approval no less than 30 days prior to commencing project activities. The financial security shall not be executed without CDFW’s prior approval. 5.3 The final executed LOC, or other form of security approved by CDFW, shall be submitted to CDFW prior to commencing project activities within areas subject to Fish and Game Code section 1602.Upon execution of the LOC, or other form of security approved by CDFW, Permittee shall provide the original and one copy of the executed document to CDFW at the address listed below . 5.4 In the event that the LOC will expire and not be renewed before the compensatory and reporting obligations have been met, Permittee shall be responsible for providing CDFW a new LOC to replace the existing LOC at least 60 days prior to the expiration date. EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 12 of 21 CONTACT INFORMATION Any communication that Permittee or CDFW submits to the other shall be submitted through Environmental Permit Information Management System (EPIMS) as instructed by CDFW. To Permittee: East Valley Water District EPIMS-SBR-42496-R6 Sterling Natural Resources Center 31111 Greenspot Road, Highland, California 92346 jnoelte@eastvalley.org To CDFW: Department of Fish and Wildlife Inland Deserts Region EPIMS-SBR-42496-R6 Sterling Natural Resources Center R6LSAReporting@Wildlife.ca.gov LIABILITY Permittee shall be solely liable for any violations of the Agreement, whether committed by Permittee or any person acting on behalf of Permittee, including its officers, employees, representatives, agents or contractors and subcontractors, to complete the project or any activity related to it that the Agreement authorizes. This Agreement does not constitute CDFW’s endorsement of, or require Permittee to proceed with the project. The decision to proceed with the project is Permittee’s alone. SUSPENSION AND REVOCATION CDFW may suspend or revoke in its entirety the Agreement if it determines that Permittee or any person acting on behalf of Permittee, including its officers, employees, representatives, agents, or contractors and subcontractors, is not in compliance with the Agreement. Before CDFW suspends or revokes the Agreement, it shall provide Permittee written notice by certified or registered mail that it intends to suspend or revoke. The notice shall state the reason(s) for the proposed suspension or revocation, provide Permittee an opportunity to correct any deficiency before CDFW suspends or revokes the Agreement, and include instructions to Permittee, if necessary, including but not limited EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 13 of 21 to a directive to immediately cease the specific activity or activities that caused CDFW to issue the notice. ENFORCEMENT Nothing in the Agreement precludes CDFW from pursuing an enforcement action against Permittee instead of, or in addition to, suspending or revoking the Agreement. Nothing in the Agreement limits or otherwise affects CDFW's enforcement authority or that of its enforcement personnel. OTHER LEGAL OBLIGATIONS This Agreement does not relieve Permittee or any person acting on behalf of Permittee, including its officers, employees, representatives, agents, or contractors and subcontractors, from complying with, or obtaining any other permits or authorizations that might be required under, other federal, state, or local laws or regulations before beginning the project or an activity related to it. For example, if the project causes take of a species listed as threatened or endangered under the Endangered Species Act (ESA), such take will be unlawful under the ESA absent a permit or other form of authorization from the U.S. Fish and Wildlife Service or National Marine Fisheries Service. This Agreement does not relieve Permittee or any person acting on behalf of Permittee, including its officers, employees, representatives, agents, or contractors and subcontractors, from complying with other applicable statutes in the Fish and Game Code including, but not limited to, Fish and Game Code sections 2050 et seq. (threatened and endangered species), section 3503 (bird nests and eggs), section 3503.5 (birds of prey), section 5650 (water pollution), section 5652 (refuse disposal into water), section 5901 (fish passage), section 5937 (sufficient water for fish), and section 5948 (obstruction of stream). Nothing in the Agreement authorizes Permittee or any person acting on behalf of Permittee, including its officers, employees, representatives, agents, or contractors and subcontractors, to trespass. AMENDMENT CDFW may amend the Agreement at any time during its term if CDFW determines the amendment is necessary to protect an existing fish or wildlife resource. Permittee may amend the Agreement at any time during its term, provided the amendment is mutually agreed to in writing by CDFW and Permittee. To request an amendment, Permittee shall use the “Amendments & Extension” form in EPIMS to submit the request. Permittee shall include with the completed form, payment of the EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 14 of 21 corresponding amendment fee identified in CDFW’s current fee schedule (see Cal. Code Regs., tit. 14, § 699.5). TRANSFER AND ASSIGNMENT This Agreement may not be transferred or assigned to another entity, and any purported transfer or assignment of the Agreement to another entity shall not be valid or effective, unless the transfer or assignment is requested by Permittee in writing, as specified below, and thereafter CDFW approves the transfer or assignment in writing. The transfer or assignment of the Agreement to another entity shall constitute a minor amendment, and therefore to request a transfer or assignment, Permittee shall use the “Amendments & Extension” form in EPIMS to submit the request. Permittee shall include with the completed form, payment of the minor amendment fee identified in CDFW’s current fee schedule (see Cal. Code Regs., tit. 14, § 699.5). EXTENSIONS In accordance with Fish and Game Code section 1605, subdivision (b), Permittee may request one extension of the Agreement, provided the request is made prior to the expiration of the Agreement’s term. To request an extension, Permittee shall use the “Amendments & Extension” form in EPIMS to submit the request. Permittee shall include with the completed form, payment of the extension fee identified in CDFW’s current fee schedule (see Cal. Code Regs., tit. 14, § 699.5). CDFW shall process the extension request in accordance with Fish and Game Code section 1605, subdivisions (b) through (e). If Permittee fails to submit a request to extend the Agreement prior to its expiration, Permittee must submit a new notification and notification fee before beginning or continuing the project the Agreement covers (Fish & G. Code § 1605, subd. (f)). EFFECTIVE DATE The Agreement becomes effective on the date of CDFW’s signature, which shall be: 1) after Permittee’s signature; 2) after CDFW complies with all applicable requirements under the California Environmental Quality Act (CEQA); and 3) after payment of the applicable Fish and Game Code section 711.4 filing fee listed at https://www.wildlife.ca.gov/Conservation/CEQA/Fees. TERM This Agreement shall expire on November 4, 2028, unless it is terminated or extended before then. All provisions in the Agreement shall remain in force throughout its term. Permittee shall remain responsible for implementing any provisions specified herein to protect fish and wildlife resources after the Agreement expires or is terminated, as Fish and Game Code section 1605, subdivision (a)(2) requires. EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 15 of 21 EXHIBITS The documents listed below are included as exhibits to the Agreement and incorporated herein by reference. A. EXHIBIT 1: Project Area B. EXHIBIT 2: Letter of Credit Template AUTHORITY If the person signing the Agreement (signatory) is doing so as a representative of Permittee, the signatory hereby acknowledges that he or she is doing so on Permittee’s behalf and represents and warrants that he or she has the authority to legally bind Permittee to the provisions herein. AUTHORIZATION This Agreement authorizes only the project described herein. If Permittee begins or completes a project different from the project the Agreement authorizes, Permittee may be subject to civil or criminal prosecution for failing to notify CDFW in accordance with Fish and Game Code section 1602. CONCURRENCE Through the electronic signature by the permittee or permittee’s representative as evidenced by the attached concurrence from CDFW’s EPIMS, the permittee accepts and agrees to comply with all provisions contained herein. The EPIMS concurrence page containing electronic signatures must be attached to this agreement to be valid. EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 16 of 21 EXHIBIT 1: Project Area EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 17 of 21 EXHIBIT 2: Letter of Credit Template [Financial institution letterhead] IRREVOCABLE STANDBY LETTER OF CREDIT NO. [number issued by financial institution] Issue Date: [date] Beneficiary: California Department of Fish and Wildlife Habitat Conservation Planning Branch Post Office Box 944209 Sacramento, CA 94244-2090 Attn: HCPB Contract Coordinator Amount: U.S. $[dollar number] [(dollar amount)] Expiry: [Date] at our counters Dear Sirs: 1. At the request and on the instruction of our customer, [name of applicant] (“Applicant”), we, [name of financial institution] (“Issuer”), hereby establish in favor of the beneficiary, the California Department of Fish and Wildlife (“CDFW”), this irrevocable standby letter of credit (“Credit”) in the principal sum of U.S. $[dollar number] [(dollar amount)] (“Principal Sum”). 2. We are informed that this Credit is and has been established for the benefit of CDFW pursuant to the terms of the [conservation or mitigation bank name] [choose one: Bank Enabling Instrument (BEI) or Conservation Bank Enabling Instrument (CBEI)] [(CDFW tracking number)], approved and signed by [choose one: CDFW or the Interagency Review Team (IRT)] on [date]. 3. We are finally informed that this Credit is intended by [choose one: CDFW or the IRT] and the Applicant to serve as security for the [choose one: performance or interim management or construction] by the Applicant under the terms of the [conservation or mitigation bank name] [choose one: BEI or CBEI]. 4. CDFW shall be entitled to draw upon this Credit only by presentation of a duly executed Certificate for Drawing (“Certificate”) in the same form as Attachment A, EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 18 of 21 which is attached hereto, at our office located at [name and address of financial institution]. 5. The Certificate shall be completed and signed by an Authorized Representative of CDFW as defined in paragraph 11 below. Presentation by CDFW of a completed Certificate may be made in person or by registered mail, return receipt requested, or by overnight courier. 6. Upon presentation of a duly executed Certificate as above provided, payment shall be made to CDFW, or to the account of CDFW, in immediately available funds, as CDFW shall specify. 7. If a demand for payment does not conform to the terms and conditions of this Credit, we shall give CDFW prompt notice that the demand for payment was not effected in accordance with the terms and conditions of this Credit, state the reasons therefore, and await further instruction. 8. Upon being notified that the demand for payment was not effected in conformity with the Credit, CDFW may correct any such non-conforming demand for payment under the terms and conditions stated herein. 9. All drawings under this Credit shall be paid with our funds. Each drawing honored by us hereunder shall reduce, pro tanto, the Principal Sum. By paying to CDFW an amount demanded in accordance herewith, we make no representations as to the correctness of the amount demanded. 10. This Credit will be cancelled upon receipt by us of Certificate of Cancellation, which: (i) shall be in the form of Attachment B, which is attached hereto, and (ii) shall be completed and signed by an Authorized Representative of CDFW, as defined in paragraph 11 below. 11. An Authorized Representative shall mean the Director of CDFW; the General Counsel of CDFW; a Regional Manager of CDFW; or the Chief of CDFW’s Habitat Conservation Planning Branch. 12. This Credit shall be automatically extended without amendment for additional periods of one year from the present or any future expiration date hereof, unless at least one hundred twenty (120) days prior to any such date, we notify CDFW in writing by registered mail, return receipt requested, or by overnight courier that we elect not to consider this Credit extended for any such period. 13. Communications with respect to this Credit shall be in writing and addressed to us at [name and address of financial institution], specifically referring upon such writing to this credit by number. The address for notices with respect to this Credit shall be: (i) for CDFW: Department of Fish and Wildlife, Habitat Conservation Planning Branch, Post Office Box 944209, Sacramento, CA EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 19 of 21 94244-2090, Attn: HCPB Contract Coordinator; and (ii) for the Applicant: [name and address of applicant]. 14. This Credit may not be transferred. 15. This Credit is subject to the International Standby Practices 1998 (“ISP 98”). As to matters not covered by the ISP 98 and to the extent not inconsistent with the ISP 98, this credit shall be governed by and construed in accordance with the Uniform Commercial Code, Article 5 of the State of California. 16. This Credit shall, if not canceled, expire on [expiration date], or any extended expiration date. 17. We hereby agree with CDFW that documents presented in compliance with the terms of this Credit will be duly honored upon presentation, as specified herein. 18. This Credit sets forth in full the terms of our undertaking. Such undertaking shall not in any way be modified, amended or amplified by reference to any document or instrument referred to herein or in which this Credit is referred to or to which this Credit relates and any such reference shall not be deemed to incorporate herein by reference any document or instrument. [Name of financial institution] By: Name: Title: EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 20 of 21 ATTACHMENT A CERTIFICATE FOR DRAWING [CDFW Letterhead] [Date] [Name and address of financial institution] Re: Irrevocable Standby Letter of Credit No. [number issued by financial institution] The undersigned, a duly Authorized Representative of the California Department of Fish and Wildlife (“CDFW”), as defined in paragraph 11 of the above-referenced standby letter of credit (“Credit”), hereby certifies to the Issuer that: 1. [Insert one of the following statements: “In the opinion of CDFW, the Applicant has failed to comply with the terms of the [conservation or mitigation bank name] [insert: Bank Enabling Instrument or Conservation Bank Enabling Instrument] referenced in paragraph 3 of the Credit.” or “As set forth in paragraph 12 of the Credit, the Issuer has informed CDFW that the Credit will not be extended and the Applicant has not provided CDFW with an equivalent security approved by CDFW to replace the Credit.”] 2. The undersigned is authorized under the terms of the Credit to present this Certificate as the sole means of demanding payment on the Credit. 3. CDFW is therefore making a drawing under the Credit in amount of U.S. 4. $ . 5. The amount demanded does not exceed the Principal Sum of the Credit. Therefore, CDFW has executed and delivered this certificate as of this day of [month], [year]. CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE [Insert one of the following: “Director” or “General Counsel” or “Regional Manager, [Name of Regional Office]” or “Chief, Habitat Conservation Planning Branch”] EPIMS-SBR-42496-R6 Streambed Alteration Agreement Page 21 of 21 ATTACHMENT B CERTIFICATE FOR CANCELLATION [CDFW Letterhead] [Date] [Name and address of financial institution] Re: Irrevocable Standby Letter of Credit No. [number issued by financial institution] The undersigned, a duly Authorized Representative of the California Department of Fish and Wildlife (“CDFW”), as defined in paragraph 11 of the above-referenced standby letter of Credit (“Credit”), hereby certifies to the Issuer that: 1. Insert one of the following statements: “The Applicant has presented documentary evidence of full compliance with the terms referenced in paragraph 3 of the Credit” or “The Applicant has provided CDFW with an equivalent security approved by CDFW to replace the Credit.”] 2. CDFW therefore requests the cancellation of the Credit. Therefore, CDFW has executed and delivered this certificate as of this day of [month], [year]. CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE [Insert one of the following: “Director” or “General Counsel” or “Regional Manager, [Name of Regional Office]” or “Chief, Habitat Conservation Planning Branch”] Sterling Natural Resource Center Project 1-1 Santa Ana Sucker HMMP November 2023 Santa Ana Sucker Habitat Monitoring and Management Plan Drafted by: Environmental Science Associates Provided for: Sterling Natural Resource Center November 2023 Sterling Natural Resource Center Project 1-2 Santa Ana Sucker HMMP November 2023 TABLE OF CONTENTS Page Ttable of Contents .................................................................................................................... 2  Chapter 1 ................................................................................................................................. 4  Introduction ..................................................................................................................... 4  1.1 Purpose and Need for the Santa Ana Sucker Habitat Monitoring and Management Plan ......................................................................................... 4  1.2 Summary of Santa Ana Sucker Status and Ecology .......................................... 4  Chapter 2 ................................................................................................................................. 1  Summary of Proposed Actions and Santa Ana Sucker Conservation Measures ........................ 1  2.1 Project Area and Components ........................................................................ 1  2.2 Santa Ana Sucker Conservation Measures ....................................................... 2  2.3 Mitigation Areas and Population Establishment ............................................... 5  Chapter 3 ............................................................................................................................... 6  Framework for Implementation .......................................................................................... 6  3.1 Responsible Parties and Roles ........................................................................ 6  3.2 Implementation Process ................................................................................ 6  Chapter 4 ................................................................................................................................. 1  Microhabitat Enhancements (CM 21.b.i., SAS-1) ................................................................. 1  4.1  Location, Timing, and Implementation Materials and Methods .......................... 1  4.2 Monitoring and Adaptive Management ........................................................... 4  4.3 Maintenance ................................................................................................ 4  4.4 Performance Criteria and Reporting ................................................................ 5  4.5 In-Perpetuity Monitoring and Management ..................................................... 5  Chapter 5 ................................................................................................................................. 1  Aquatic Predator Control Program (CM 21.b.ii., SAS-2) ...................................................... 1  5.1 Location, Timing, and Target Exotic Species ................................................... 1  5.2 Control Methods........................................................................................... 3  5.3 Monitoring and Adaptive Management ........................................................... 3  5.4 Performance Criteria and Reporting ................................................................ 3  5.5 In-Perpetuity Monitoring and Management ..................................................... 4  Chapter 6 ................................................................................................................................. 1  Exotic Weed Management Program (CM 21.b.iii., SAS-3) .................................................... 1  6.1 Location, Timing, and Implementation Methods .............................................. 1  6.2 Maintenance ................................................................................................ 4  6.3 Monitoring and Adaptive Management ........................................................... 4  6.4 Performance Criteria and Reporting ................................................................ 6  6.5 In-Perpetuity Monitoring and Management ..................................................... 7  Chapter 7 ................................................................................................................................. 8  High Flow Pulse Events (SAS-4) ....................................................................................... 8  7.1 Location, Timing, and Implementation Methods .............................................. 8  7.2 Monitoring and Adaptive Management ......................................................... 10  7.3 Performance Criteria and Reporting .............................................................. 10  7.4 In-Perpetuity Monitoring and Management ................................................... 11  Chapter 8 ................................................................................................................................. 1  Sterling Natural Resource Center Project 1-3 Santa Ana Sucker HMMP November 2023 Rialto Channel / Santa Ana River Water Temperature Amelioration Project (CM 21.b.iv, SAS-5) ....................................................................................................... 1  8.1 Location, Timing, and Implementation Methods .............................................. 1  8.2 Monitoring and Adaptive Management ........................................................... 2  8.3 Performance Criteria and Reporting ................................................................ 3  8.4 In-perpetuity Monitoring and Management ..................................................... 4  Chapter 9 ................................................................................................................................. 1  Upper Watershed Santa Ana Sucker Population Establishment (CM 21.b.v., SAS-6) ............... 1  9.1 Location, Timing, and Implementation Methods .............................................. 1  9.2 Monitoring and Adaptive Management ........................................................... 4  9.3 Performance Criteria and Reporting ................................................................ 6  9.4 In-Perpetuity Monitoring and Management ..................................................... 7  Chapter 10 ............................................................................................................................... 8  Annual Monitoring of Santa Ana River (CM 21.b.vi., SAS-7) ............................................... 8  10.1 Location, Timing and Monitoring Methods ..................................................... 8  10.2 Analysis and Reporting ................................................................................. 8  10.3 In-Perpetuity Monitoring and Management ..................................................... 8  Chapter 12 ............................................................................................................................... 1  Summary of Reporting and Agency Coordination ................................................................ 1  12.1 Compilation of Reporting for All Measures ..................................................... 1  12.2 Resource Agency Coordination ...................................................................... 1  12.3 In-Perpetuity Monitoring and Management ..................................................... 1  Chapter 13 ............................................................................................................................... 1  References ....................................................................................................................... 1  Appendix A Files...................................................................................................................... 1  Habitat Parameters for Various Life History Stages of Santa Ana Sucker – Sterling Natural Resources Center ....................................................................... 1  Permitting for Microhabitat Enhancement along the Santa Ana River ........................... 1  Annual Report: Santa Ana River Stream Habitat Improvement Pilot Project (SBVMWD 2022) .................................................................................................. 1  Appendix B .............................................................................................................................. 2   Nonnative Aquatic Predator Control Plan (ICF 2023) ........................................................... 2  Appendix C .............................................................................................................................. 3  Exotic Weed Management Plan (IERCD 2023).................................................................... 3  Appendix D .............................................................................................................................. 4  Rialto Channel/Santa Ana River Water Temperature Amelioration Project Cost Estimate ................................................................................................................. 4  Appendix E Files ...................................................................................................................... 5  Santa Ana Sucker Translocation Plan (Dudek 2022) ............................................................. 5  EVWD Translocation Financial Security ............................................................................. 5  Santa Ana Sucker Regional Population Establishment Program Endowment Estimate ............. 5  Sterling Natural Resource Center Project 1-4 Santa Ana Sucker HMMP November 2023 CHAPTER 1 Introduction 1.1 Purpose and Need for the Santa Ana Sucker Habitat Monitoring and Management Plan 1.1.1 Background East Valley Water District (EVWD) is proposing to construct the Sterling Natural Resource Center (SNRC) facility in the City of Highland to treat wastewater generated in EVWD’s service area for beneficial reuse in the upper Santa Ana River watershed. EVWD currently conveys its wastewater to the City of San Bernardino for secondary treatment at the San Bernardino Water Reclamation Plant (SBWRP) and tertiary treatment at the Rapid Infiltration and Extraction (RIX) facility which discharges to the Santa Ana River. The proposed project would instead treat, recycle and reuse the wastewater for multiple beneficial uses within the upper Santa Ana River watershed. Once constructed and operational, approximately 6 million gallons per day (MGD) of water previously treated at RIX and discharged to the Santa Ana River would be treated at the SNRC. Following treatment EVWD’s wastewater will be conveyed to a series of infiltration basins for groundwater replenishment in the Bunker Hill Groundwater Basin. 1.1.2 Purpose and Need This Santa Ana Sucker (or SAS) Habitat Monitoring and Management Plan (HMMP) has been prepared to describe how project impacts, the potential operational effects of the Sterling Natural Resource Center (SNRC) project on Santa Ana sucker (SAS), a federally threatened species and its designated critical habitat, will be offset/mitigated. Development of an this HMMP is a requirement of the Biological Opinion and associated amendments issued by the USFWS for the project, Wastewater Change Order WW0095 issued by the State Water Resources Control Board (SWRCB) and facilitates compliance with the project’s Final Environmental Impact Report (SCH No. 2015101058) pursuant to California Environmental Quality Act (CEQA). If the Upper Santa Ana River Habitat Conservation Plan (HCP) is adopted prior to or during implementation of this HMMP, the monitoring and reporting identified in this plan will be carried forward into the HCP’s monitoring and reporting program. Incidental take of SAS that may occur associated with the implementation of this HMMP has been provided through the section 7 consultation and issuance of the Biological Opinion, and addenda thereto. 1.2 Summary of Santa Ana Sucker Status and Ecology The SAS was designated as a federally threatened species on April 12, 2000. Critical habitat was designated for this species on December 14, 2010. Sterling Natural Resource Center Project 1-5 Santa Ana Sucker HMMP November 2023 1.2.1 Status and Critical Habitat In 2010, an area of 9,331 acres in portions of rivers and creeks within San Bernardino, Los Angeles, Orange, and Riverside counties were designated as critical habitat for SAS (50 CFR Part 17) (USFWS 2010). The reduction in discharge to the Santa Ana River is located within Unit 1 (Santa Ana River) designated critical habitat for SAS, which comprises 7,097 acres (USFWS 2010). A majority of the proposed mitigation also occurs within Unit 1. Status and Distribution Santa Ana sucker was historically documented throughout the upper and lower portions of the Santa Ana River watershed, including the mainstem from near the current location of Seven Oaks Dam to approximately 14 miles below Prado Dam and multiple tributaries including City Creek, Warm Creek, Lytle Creek, Rialto Channel, Evans Lake drain, Tequesquite Arroyo, Sunnyslope Creek, Anza Park drain, and Chino Creek. In contrast to the species’ range in the Los Angeles and San Gabriel Rivers, where the extant populations are in the upper portions of the watershed, the species is confined to the lowlands of the Santa Ana River watershed. Barriers to migration restrict the range of the SAS to approximately 21 miles from South La Cadena Drive in San Bernardino County to Prado Dam. The extent of habitat suitable for spawning in the mainstem is limited to the reach of the Santa Ana River upstream of River Road. Spawning is not currently known to occur below Prado Dam (USFWS 2017). The species is also known to occupy tributaries within this range, including Rialto Channel, Tequesquite Arroyo, Sunnyslope Creek, and Anza Park drain. Currently the species occurs only within portions of the Santa Ana, Los Angeles, Santa Clara and San Gabriel River watersheds. Over 80 percent of the SAS’s historical range has been lost in the Los Angeles River watershed, 75 percent within the San Gabriel River watershed and 70 percent in the Santa Ana River watershed (USFWS 2017). The Santa Clara River population was thought to have been transplanted from the Los Angeles Basin and was not protected when the species was listed. Status and Distribution in the Vicinity of the Mitigation Areas Mitigation is proposed within the mainstem Santa Ana River and in two mountain tributaries. As previously discussed within the upper Santa Ana River watershed, the species is primarily restricted to an approximate 21-mile stretch between La Cadena crossing of the Santa Ana River and Prado Dam. The species is no longer found within mountain tributaries to the Santa Ana River. Annual SAS surveys within the Santa Ana River have documented significant fluctuations in estimated population size, ranging from 501 to 35,541 (Figure 1-1 and Table 1-1). Sterling Natural Resource Center Project 1-6 Santa Ana Sucker HMMP November 2023 Figure 1-1 USGS Santa Ana Sucker Survey Locations, 2015 to 2020 TABLE 1-1 SANTA ANA SUCKER POPULATION ESTIMATES IN SANTA ANA RIVER Year Santa Ana Sucker Population Estimate1 2015 26,597 2016 35,541 2017 16,036 2018 5,584 2019 14,733 2020 501 2021 4,8912 2022 16,9992 1 SOURCE: United States Geological Survey. 2023. Unpublished data. 2 Survey area increased from approximately 4.4 miles (Rialto Channel to Mission Avenue, years 2015-20) to approximately 9 miles (Rialto Channel to Van Buren Avenue, years 2021-22) due to an observed shift in native fishes downstream. In 2021, 18 miles (Rialto Channel to River Road Bridge) were surveyed but native fish were only observed upstream of Van Buren Boulevard. Rialto Drain to Santa Ana River Rialto Drain to RIX Outflow RIX Outflow to South Bank South bank to Riverside Drive Riverside Drive to Mission Inn Ave. Sterling Natural Resource Center Project 1-7 Santa Ana Sucker HMMP November 2023 Threats to the Species Main threats to the species include habitat destruction, natural and human-induced changes in stream-flow, urban development and related land-use practices, intensive recreation, introduction of nonnative competitors and predators, and demographics associated with small population size (USFWS 2017). Threats to the Species in the Vicinity of the Mitigation Areas Within the mainstem Santa Ana River downstream of the RIX facility, threats include nonnative aquatic predators, off-highway vehicle (OHV) traffic through spawning habitat, homeless encampments, and elevated water temperatures. The primary threat to SAS within the proposed mountain tributary stream mitigation sites include nonnative aquatic predators and habitat disturbance caused by stochastic events, including fire and flood. 1.2.2 Ecology and Habitat Needs Habitat Affinities The SAS occurs in watersheds associated with draining the San Gabriel and San Bernardino Mountains of southern California. Historically, this species extended from the uppermost watershed areas to the Pacific Ocean and have been known to occur both within steep mountain streams as well as those meandering through alluvial floodplains. This species inhabits perennial streams with water ranging in depth from inches to several feet and in currents ranging from slight to swift. Historically, suitable streams have been subject to periods of severe flooding as well as extended drought conditions typical of southern California weather (USFWS 2017). The SAS is known to utilize various substrate types throughout each life stage. The presence of coarse substrates (gravel, cobble) with a mixture of sand provides the optimal stream conditions. This species also prefers in-stream and bank-side riparian vegetation that provides shade and cover, particularly for larvae and juveniles. However, such conditions are less important for adults as they utilize deeper, larger pools (USFWS 2017). Tolerances to water quality variables (temperature, dissolved oxygen and turbidity) have not been determined; however, this species has been found to be most abundant in clear water, with temperatures less than 72 ºF (USFWS 2017). Temperatures much above 86 ºF are likely to be a limiting factor to movement and distribution of the species (USFWS 2010). Life History The SAS is a small, short-lived member of the sucker family (Catostomidae). They utilize the downward orientation of their mouthparts to suck up algae, small invertebrates and other organic matter (USFWS 2017). Spawning of this species typically occurs between mid-February through July with peak activity occurring in April. Fecundity (number of eggs/offspring) is high and increases linearly as body weight increases. Spawning takes place over gravel riffles where fertilized eggs adhere to Sterling Natural Resource Center Project 1-8 Santa Ana Sucker HMMP November 2023 substrate and hatch within 360 hours (15 days). Larvae measure approximately 0.28 inches (7 mm) at hatching. 1.2.2.1 Primary Constituent Elements In 2010, the USFWS adopted a critical habitat designation that encompasses much of the SAR channel and City Creek. The designation published in the Federal Register on December 14, 2010, lists Primary Constituent Elements (PCE, renamed Physical and Biological Features) for the SAS as follows: 1. A functioning hydrological system within the historical geographic range of Santa Ana sucker that experiences peaks and ebbs in the water volume (either naturally or regulated) that encompasses areas that provide or contain sources of water and coarse sediment necessary to maintain all life stages of the species, including adults, juveniles, larvae, and eggs, in the riverine environment; 2. Stream channel substrate consisting of a mosaic of loose sand, gravel, cobble, and boulder substrates in a series of riffles, runs, pools, and shallow sandy stream margins necessary to maintain various life stages of the species, including adults, juveniles, larvae, and eggs, in the riverine environment; 3. Water depths greater than 1.2 in (3 cm) and bottom water velocities greater than 0.01 ft per second (0.03 m per second); 4. Clear or only occasionally turbid water; 5. Water temperatures less than 86° F (30° C); 6. Instream habitat that includes food sources (such as zooplankton, phytoplankton, and aquatic invertebrates), and associated vegetation such as aquatic emergent vegetation and adjacent riparian vegetation to provide: (a) Shading to reduce water temperature when ambient temperatures are high, (b) shelter during periods of high water velocity, and (c) protective cover from predators; and 7. Areas within perennial stream courses that may be periodically dewatered, but that serve as connective corridors between occupied or seasonally occupied habitat and through which the species may move when the habitat is wetted. Although the PCEs are not definitive habitat suitability criteria, they do provide some indication of target habitat features including for depth and velocity that could be affected by flow reduction. PCE number 3 identifies minimum velocity of 0.01 feet per second. However, other studies have shown that optimal velocity for SAS is likely in the range of 1.2 - 2.4 feet per second (Sakai, 2000), because these higher velocities move sand and silt from the cobble substrate, resulting in more favorable habitat. On behalf of the Upper Santa Ana River Habitat Conservation Plan, additional studies are currently being conducted to better understand habitat requirements of this species. Results from these studies are anticipated to augment our understanding of basic requirements of SAS identified in the PCEs and previous literature. Sterling Natural Resource Center Project 1-9 Santa Ana Sucker HMMP November 2023 1.2.3 Recovery Plan for the Santa Ana Sucker The Recovery Plan for the Santa Ana Sucker was developed to identify reasonable actions that may be necessary, based upon the best scientific and commercial data available, for the conservation and survival of SAS (USFWS 2017). The goal of the recovery plan is to control or reduce threats to SAS to the extent that the species warrants delisting and no longer needs protection under the Act. The following objectives are identified in the recovery plan: 1. Develop and implement a rangewide monitoring protocol to accurately and consistently document populations, occupied habitat, and threats. 2. Conduct research projects specifically designed to inform management actions and recovery. 3. Increase the abundance and develop a more even distribution of SAS within its current range by reducing threats to the species and its habitat. 4. Expand the range of SAS by restoring habitat (if needed), and reestablishing occurrences within its historical range. Recovery of a species occurs when threats have been sufficiently ameliorated based on delisting (or recovery) criteria. Delisting will be considered for SAS when the following conditions have been met in each of the recovery units (RUs), including the Santa Ana River. 1. Present or threatened destruction, modification, or curtailment of habitat or range. Adequate amounts of suitable habitat are restored, protected, and managed within each recovery unit to support viable populations of all life stages of SAS and provide resiliency and redundancy to protect again catastrophic events throughout the current range of the species. 2. Predation. Management is implemented to reduce competition and predation by nonnative species to levels determined to be necessary for the maintenance of viable SAS populations. 3. Other natural or manmade factors affecting its continued existence. The current range of the species is expanded through modification or removal of existing barriers, restoration of suitable habitat, and/or reintroduction of the species to areas within its historical range in a configuration that ensures reasonable certainty the remaining genetic makeup of the species has been preserved and can withstand catastrophic events in the watershed. Appropriate gene flow is maintained between occupied areas of each RU, through natural processes or management, to ensure population viability and genetic exchange. Stable or increasing population averaged over 15 years within each RU and occupancy including the following areas:  Santa Ana River Watershed Recovery Unit – - Santa Ana River in the Prado Reach and Imperial Reach; - Four tributaries in the Prado Reach and/or Imperial Reach (for example Tequesquite Arroyo, Anza Drain, Hole Creek, Evans Drain, Sunnyslope Creek, Day Creek, Aliso Creek); and Sterling Natural Resource Center Project 1-10 Santa Ana Sucker HMMP November 2023 - Three tributaries in the La Cadena Reach (for example City Creek, Lytle Creek, Cajon Wash, Alder Creek, Plunge Creek, Santa Ana River above Seven Oaks Dam). A long-term monitoring and management plan is in place to evaluate the effectiveness of management actions to address ongoing threats and to identify new threats which may require implementation of adaptive management actions. 1.2.3.1 Summary of Recovery Actions Recovery actions are considered by USFWS to be necessary to bring recovery of SAS and ensure its long-term conservation, and each action is assigned a priority based on what is most important for recovery of the species. Priority 1: An action that is taken to prevent extinction or to prevent the species from declining irreversibly. Priority 2: An action that is taken to prevent a significant decline in species population/habitat quality or some other significant negative impact short of extinction. Priority 3: All other actions necessary to provide for full recovery of the species. Below is a summary of the recovery actions necessary to achieve SAS recovery. 1. Develop and implement a rangewide monitoring protocol to accurately and consistently document populations, occupied habitat, and threats (Priority 2, 3 for all RUs). a. Develop a rangewide monitoring protocol including metrics related to the status of the Sana Ana sucker population (i.e., abundance, age structure, and distribution); metrics related to habitat suitability for each life stage (i.e., water quality and quantity, substrate, food sources); metrics related to the status of threats (i.e., hydrological modifications and barriers to dispersal, water quality, nonnative vegetation, and OHV use); and standardized data sheets. 2. Conduct biological research to inform management actions and recovery for the SAS. a. Water Quality – Determine the sensitivity of SAS to water quality variables that may be altered by hydrological modification or regulated discharges (i.e., water temperature, dissolved oxygen, turbidity, etc.) (Priority 2 for Santa Ana River RU). b. Hydrology – In areas with modified hydrology, determine hydrological processes necessary to maintain breeding, feeding, and sheltering habitat for the species (Priority 1 for Santa Ana River RU). c. Sediment Transport – In areas with modified hydrology, evaluate sediment sources and transport to determine if sufficient sediment is available to maintain appropriate gradient and substrate composition for the species (Priority 1 in the Santa Ana River RU). d. Suitable Habitat – Determine habitat conditions (i.e., gradient, water quality, water velocity, and substrate) that are conducive to supporting the SAS (Priority 2 for all RUs). e. Nonnative Species – Determine how habitat suitability can be improved through reduction of nonnative aquatic species (Priority 2 in the Santa Ana River RU) and Sterling Natural Resource Center Project 1-11 Santa Ana Sucker HMMP November 2023 nonnative riparian vegetation (i.e., Arundo donax and Tamarix ramosissima) (Priority 3 for all RUs). i. Investigate the extent of impacts to invasive red algae (Compsopogon caeruleus) to SAS habitat within the Santa Ana River RU. If impacts are found to be significant, investigate management actions to remove or treat this nonnative to reduce impacts to sucker where it occurs (Priority 1 for Santa Ana River RU). f. Genetics – Ensure the natural genetic diversity across the range of the species is preserved. Determine the genetic variation within and between watersheds where SAS occur (Priority 2 for all RUs). g. Captive Propagation – Captive propagation may be necessary to assist in the recovery of the species due to the limited extent of suitable spawning habitat (Priority 1 for all RUs). 3. Increase the abundance and distribution of the SAS within its current range by reducing threats to the species and its habitat, including ameliorating hydrological modifications resulting from flood control and water conservation operations (Priority 1 for Santa Ana River RU). 4. Increase the range of the SAS by restoring habitat (as needed), and reestablishing occurrences within its historical range. a. Assess areas within the Sana Ana River RU for potential range expansion, followed by planning and implementation of habitat restoration and reintroductions. Areas to be considered for possible reintroduction include: Aliso Creek, Temescal Creek, Chino Creek, San Antonio Creek, Cucamonga Creek, Day Creek, Alder Creek, Santa Ana River above Seven Oaks Dam, Mill Creek, Lytle Creek, Cajon Wash, City Creek, Plunge Creek, Warm Creek, Mountain Home Creek, Bear Creek, and other potential tributaries (Priority 1). Sterling Natural Resource Center Project 3-1 Santa Ana Sucker HMMP November 2023 CHAPTER 2 Summary of Proposed Actions and Santa Ana Sucker Conservation Measures 2.1 Project Area and Components The proposed project is located within two municipalities, including the City of Highland, and City of San Bernardino. The SNRC has been constructed on approximately 20 acres, located east and west of North Del Rosa Drive between East 5th Street and East 6th Street in the City of Highland. The SNRC would produce tertiary-treated water for reuse. A conveyance system including a pumping station and pipeline would be constructed to convey treated water from the SNRC to the Weaver Basins (a series of five new infiltration basins) for groundwater recharge, located south of Greenspot Road, north of Abbey way, east of Merris Street, and west of Weaver Channel in the City of Highland (Figure 2-1). Most of the wastewater reaching the new treatment facility would be conveyed by gravity within the existing collection system. However, some modifications would be necessary to connect the existing collection system with the new treatment plant. Two lift stations and approximately 11,000 linear feet of forcemain would be installed within city streets west of the SNRC, as shown in Figure 2-1. Sterling Natural Resource Center Project 3-2 Santa Ana Sucker HMMP November 2023 Figure 2-1 Project Components Overview 2.2 Santa Ana Sucker Conservation Measures The project EIR stated that construction and operational impacts to biological resources would occur and require mitigation. Measures to reduce potential project-related impacts to avoid, minimize, and compensate for impacts to Santa Ana sucker are identified in mitigation measure BIO-3 of the EIR. BIO-3 requires the preparation and implementation of a HMMP that encompasses seven elements, identified as SAS-1 through SAS-7 (see below). Conservation measures were also identified in the Biological Opinion (FWS-SB-16B0182- 17F0387), issued March 9, 2017, and in amendments to the BO (amendment 1 (FWS-SB- 16B0182-17F0387-R001 issued August 11, 2017) and amendment 2 (FWS-SB-16B0182- 17F0387-R002 issued January 3, 2022), to avoid and minimize impacts to listed species and designated critical habitat and offset those impacts that would result from the project. The BO included all but one (SAS-4. High Flow Pulse Events) of the mitigation measures identified in the EIR as conservation measures. However, SAS-4 from the EIR was identified as a conservation recommendation in the 2017 BO (#6 RIX Facility – High Flow Pulse Events). The Santa Ana sucker conservation measures listed below encompass those identified in the EIR and in Wastewater Change Order WW0095 (SAS-1 through SAS-7), and those identified in the Source: Esri, Maxar, GeoEye, Earthstar Sterling Natural Resources Project New treatment plant New pipeline Weaver Basins Sterling Natural Resource Center Project 3-3 Santa Ana Sucker HMMP November 2023 BO (CM.21.b.i through CM.21.b.vi). For some of the measures we are proposing an expanded effort/temporal change in timing of measure implementation based on data and information collected since drafting of the EIR and 2017 BO, and to provide greater flexibility for successful implementation. In combination, the conservation measures will reduce potential project-related impacts to avoid, minimize, and offset impacts to SAS while contributing to the long-term conservation of the species (ESA 2016). Relevant permitting from the USFWS and/or CDFW (e.g., state scientific collection permit, MOU, etc.), as appropriate, will be secured prior to implementation of the conservation measures.  CM 21.b.i. (SAS-1): Habitat Node Creation (Microhabitat Enhancements). The HMMP will identify microhabitat enhancements within the upstream reach of the affected river segment using natural materials to increase scour and pool formation. This could include placement of large boulders and/or large woody debris (nodes) to increase velocity of flow and gravel bar patches as well as deep pool refugia areas. This measure will enhance stream habitat within at least 1.5 acres of SAS-occupied habitat along approximately 2.5 miles of river, as measured in fall by the areas of pools created, gravel cobble substrates exposed, and other functional habitat features created/enhanced. o Flexibility in enhancement area and expanded Effort (identified in the Supplemental BA; proposed for inclusion in CDFW EPIMS-SBR-42496-R6): To provide greater flexibility for implementation (and overcome landowner access permissions) microhabitat enhancements can be created within an area greater than the upstream reach of the affected river segment, i.e., enhancement can be created between RIX outfall and Van Buren Boulevard (or elsewhere along the mainstem Santa Ana River if determined beneficial to the species). Also, an additional 0.5 acre of microhabitat enhancements (total of 2.0 acres) will be maintained temporally during dry rainfall years (≤14.7 inches1) until Upper Watershed Population Establishment has occurred (CM.21.b.v.). Nodes would be reinstalled periodically when needed to maintain effectiveness.  CM 21.b.ii. (SAS-2): Aquatic Predator Control Program. The HMMP will include an Aquatic Predator Control Program to be implemented between Rialto Channel downstream to Van Buren Boulevard (or elsewhere along the mainstem Santa Ana River if determined beneficial to the species), focusing on areas of highest ecological value to SAS reproduction (currently from Rialto Channel downstream to approximately Mission Boulevard and in mainstem tributaries). The nonnative aquatic predator removal program will be focused on reducing the abundance of nonnative aquatic predators immediately preceding the start of the SAS spawning season (approximately March 1). The control effort will occur a minimum of one time per year outside of the SAS spawning season (August 1 to February 28), using electrofishing or other techniques as approved by the USFWS and CDFW. o Expanded Effort (identified in the Supplemental BA; proposed for inclusion in CDFW EPIMS-SBR-42496-R6): Nonnative species will be removed a minimum of two times per year until Upper Watershed Population Establishment has occurred (CM.21.b.v.), at which point the effort will be reduced to a minimum of one time per year. Control will be implemented outside of the SAS spawning season (August 1 to February 28), using electrofishing or other techniques as approved by the USFWS and CDFW. 1 Measured in San Bernardino, CA. Sterling Natural Resource Center Project 3-4 Santa Ana Sucker HMMP November 2023  CM 21.b.iii. (SAS-3): Exotic Weed Management Program. The HMMP will include an Exotic Weed Management Program targeting the removal of nonnative species such as giant reed, tamarisk, castor bean, tree of heaven, etc. The HMMP will include an annual maintenance and performance goal for nonnative plant removal within the upper reach of the affected river segment. The weed removal efforts will occur within an approximate 4.2-mile stretch of the Santa Ana River (e.g., Rialto Channel to Mission Boulevard Bridge, or, depending on landowner permissions, from Market Street Bridge to Anza Creek). o Flexibility in weed management implementation area (identified in Supplemental BA; proposed for inclusion in CDFW EPIMS-SBR-42496-R6): To provide greater flexibility for implementation based on landowner access permissions, the geographic area of implementation can be expanded to include management between Market Street Bridge and Anza Creek.  SAS-4: High Flow Pulse Events. The HMMP will identify means to create high flow pulse events as needed based on substrate conditions, up to 2 times per year. The high flow pulse events would be designed to flush out fine sediment from the upstream reach of the affected river segment and would be implemented through a cooperative agreement with the City of San Bernardino Municipal Water Department and/or the City of Rialto.  CM 21.b.iv (SAS-5): Rialto Channel Water Temperature Management. The HMMP will identify methodology to reduce water temperature in Rialto Channel to tolerable levels (less than 86 degrees Fahrenheit) during summer months. o Flexibility in location and timing of water temperature amelioration (identified in Supplemental BA; proposed for inclusion in CDFW EPIMS-SBR-42496-R6): Rialto Channel/Santa Ana River Water Temperature Amelioration Project. The HMMP will identify funding to be committed by EVWD to contribute towards implementation of a proposed measure(s) to ameliorate Rialto Channel and/or Santa Ana River water temperatures to <86 degrees Fahrenheit. Proposed measures/strategies to reduce water temperature will be developed following completion of a larger-scale water temperature monitoring study (to be completed by the Upper Santa Ana River Habitat Conservation Plan applicants).  CM 21.b.v. (SAS-6): Upper Watershed SAS Population Establishment. The HMMP will outline a plan for establishing two new locations of Santa Ana sucker within City Creek and Hemlock Creek, or other suitable watershed tributary, in coordination with the Wildlife Agencies. The HMMP will identify measures to directly increase the number of Santa Ana sucker in the SAR population, increase the amount of suitable and occupied habitat in this watershed, and distribute the risk of a catastrophic event between multiple locations. At least one translocation of SAS will have occurred with data provided to the USFWS and CDFW indicating that the nascent population is healthy, reproducing, and appears to be successfully establishing. The HMMP will also identify the amount of financial assistance to be provided by EVWD for the regionally-beneficial population establishment program. Success criteria shall include, but not be limited to, a stable or increasing population averaged over 5 years within City Creek or other suitable tributary within the upper Santa Ana River watershed. o Flexibility in implementation timing (identified in Supplemental BA; proposed for inclusion in CDFW EPIMS-SBR-42496-R6): Flexibility in timing of translocation is needed to address downstream landowner concerns. A financial security is also proposed to provide assurances that the translocations will be implemented as soon as possible. Sterling Natural Resource Center Project 3-5 Santa Ana Sucker HMMP November 2023  CM 21.b.vi. (SAS-7): Hydrology Monitoring. The HMMP will outline a monitoring program to collect hydrology data in the segment of river between the RIX discharge and Mission Boulevard. The data will include flow velocity, temperature and depth. o Flexibility in monitoring area requested to overcome landowner access permissions. Monitoring area will be coterminous with areas covered by SAS 1- 5. 2.3 Mitigation Areas and Population Establishment In order to offset operational project impacts associated with the proposed diversion of 6 MGD from the RIX Tertiary Treatment Facility discharge, implementation of the conservation measures identified in Section 2.3 are proposed within the Santa Ana River between RIX and River Road and within two mountain tributaries to the Santa Ana River (collectively referred to as the mitigation areas) (Figure 2-2). Figure 2-2 Mitigation Areas Source: Esri, Maxar, GeoEye, Earthstar Mainstem Santa Ana River Mitigation Area Santa Ana River Mountain Tributaries Mitigation Area Sterling Natural Resource Center Project 3-6 Santa Ana Sucker HMMP November 2023 CHAPTER 3 Framework for Implementation 3.1 Responsible Parties and Roles 3.1.1 Project Sponsor East Valley Water District (EVWD) is responsible for implementation of all mitigation measures identified in the EIR and Biological Opinion, as amended. The EVWD contact for the project is: East Valley Water District 31111 Greenspot Road Highland, CA 92346 Contact: Jeff Nolte, Director of Engineering & Operations jnoelte@eastvalley.org (909) 888-8986 3.1.2 Implementation and Agency Coordination This HMMP will be reviewed and approved by the USFWS under their authority to enforce the federal Endangered Species Acts, and by the California Department of Fish and Wildlife (CDFW). The proposed diversion of 6 MGD from the RIX Tertiary Treatment Facility discharge will not occur until this HMMP has been approved by USFWS and CDFW. This HMMP will be implemented by a contracted, qualified and permitted entity such as the Riverside-Corona Resource Conservation District (RCRCD), qualified hydrologists, as well as other staff or contractors as needed, in coordination with the USFWS and CDFW. 3.2 Implementation Process 3.2.1 Plan Development This HMMP outlines a monitoring framework to evaluate the effectiveness of mitigating the potential operational effects of the SNRC project on SAS and guide adaptive management. The HMMP describes project objectives, defines expected or desired outcomes, and describes monitoring activities to track progress toward objectives and compliance with regulatory permits during the initial implementation phase. If monitoring reveals issues that require more in-depth study to reduce uncertainty for management, then the Project Sponsor, with input from experts, will identify and prioritize key questions for further monitoring or study. Focused investigations would be developed and implemented separately, based on priority and availability of funding and expertise. Sterling Natural Resource Center Project 3-7 Santa Ana Sucker HMMP November 2023 3.2.1.1 Relationship to Recovery Actions The HMMP has been prepared in consideration of the recovery actions identified in the recovery plan, and plan implementation will aid in species recovery, as shown in Table 3-1. TABLE 3-1 RELATIONSHIP TO RECOVERY ACTIONS Conservation Measure ID Habitat Improvement Action Relationship to Recovery Actions CM 21.b.i. (SAS-1) Microhabitat Enhancements This measure will result in the creation of suitable habitat features within the Santa Ana River (Recovery Actions #1, 2d, and 3). CM 21.b.ii. (SAS-2) Aquatic Predator Control Program This measure conducts biological research to inform management actions and recovery for the SAS through the removal of aquatic predators (Recovery Actions #2e and 3). CM 21.b.iii. (SAS-3) Exotic Weed Management Program This measure conducts biological research to inform management actions and recovery for the SAS through the removal of exotic weeds within the riparian corridor (Recovery Actions #2e and 3). SAS-4 High Flow Pulse Events This measure will result in high flow pulse events based on substrate conditions (Recovery Actions #2c, 3). CM.21.b.iv (SAS 5) Rialto Channel/ Santa Ana River Water Temperature Amelioration Project This measure will involve monitoring water temperature conditions within Rialto Channel and the Santa Ana River to identify potential locations and seasonal timing implementing a strategy to ameliorate water temperatures to less than 86 degrees in Rialto Channel only during summer months. The revised effort in the Supplemental BA proposes funding to be committed by EVWD to contribute towards implementation of a proposed measure(s) to ameliorate Rialto Channel/Santa Ana River water temperatures to <86 degrees Fahrenheit. Potential measures/strategies to reduce water temperature will be developed following completion of a larger-scale water temperature monitoring study (to be completed by others) (Recovery Actions #2a, 2b, and 3). CM 21.b.v. (SAS-6) Upper Watershed SAS Population Establishment This measure increases the current range of the SAS by re- establishing SAS populations within its historical range of City Creek (Recovery Actions #3 and 4). CM 21.b.vi. (SAS-7) Hydrology Monitoring This measure will involve monitoring hydrology and water quality for conditions optimal for SAS (Recovery Actions #2a, 2b and 3). 3.2.2 Monitoring and Adaptive Management Monitoring and adaptive management is an iterative approach that uses regular monitoring and assessments to evaluate progress towards project objectives. Adaptive management acknowledges that uncertainties exist in predicting how project implementation affects important resources and provides a scientific and institutional framework for adjusting future management decisions as understanding of the ecosystem improves (Williams et al. 2009). The SNRC project follows the steps of the adaptive management cycle: (1) Plan – Identify goals and objectives and identify uncertainties and key questions for assessment. (2) Design – Summarize designs and operational scenarios for optimal habitat parameters. (3) Implement –Construct and/or implement conservation measures. Sterling Natural Resource Center Project 3-8 Santa Ana Sucker HMMP November 2023 (4) Monitor – Describe monitoring methods for measuring indicators of desired outcomes and triggers of management actions. (5) Evaluate – Analyze, synthesize, and manage data to document project outcomes, assess progress toward objectives, detect any negative outcomes, and reduce uncertainty. (6) Adapt and Learn – Communicate findings to decision-makers and managers to determine if and when to adjust management actions and/or monitoring to improve project performance and inform future actions. The effectiveness of actions will be assessed by measuring physical and biological indicators of expected or desired project outcomes. Status and trends of these indicators will be measured to evaluate progress toward objectives and to detect potential issues that may trigger a management response. An adaptive approach will be used to prioritize and phase monitoring elements for efficiency and cost-effectiveness. The scientists and managers responsible for implementation of the HMMP will annually synthesize and analyze the monitoring data. An overall review will be conducted annually to evaluate project performance. A decision-making framework will guide recommendations for maintaining or adjusting operations. The HMMP is a living document, flexible enough to respond to unanticipated events and to accommodate lessons learned. Each year, the field sampling program will be evaluated and updated, if necessary, in annual reports to be prepared by the Project Sponsor or qualified contractors on behalf of the Project Sponsor. 3.2.2.2 Relationship to Primary Constituent Elements The design, implementation, monitoring and maintenance of habitat improvements within the mitigation areas are geared towards improving the PCEs for the SAS identified in Section 1.2.2.1. Table 3-2 identifies the PCEs that would be improved as it relates to each habitat improvement action. Sterling Natural Resource Center Project 3-9 Santa Ana Sucker HMMP November 2023 TABLE 3-2 RELATIONSHIP TO PRIMARY CONSTITUENT ELEMENTS Conservation Measure ID Habitat Improvement Action Relationship to Primary Constituent Elements (aka: Physical and Biological Features) CM 21.b.i. (SAS-1) Microhabitat Enhancements PCE #1, 2, 3, 6 CM 21.b.ii. (SAS-2) Aquatic Predator Control Program PCE #1 CM 21.b.iii. (SAS-3) Exotic Weed Management Program PCE #1, 3, 6 SAS-4 High Flow Pulse Events PCE #1, 2, CM 21.b.iv (SAS-5) Rialto Channel/ Santa Ana River Water Temperature Amelioration Project PCE #1, 5 CM 21.b.v. (SAS-6) Upper Watershed SAS Population Establishment PCE #1, 2, 3, 4, 5, 6, 7 CM 21.b.vi. (SAS-7) Hydrology Monitoring PCE #1, 3, 4, 5 3.2.3 Evaluation and Reporting Monitoring procedures, approach, and schedule may be assessed following each monitoring event. Adjustments to the monitoring program may be recommended due to changing site conditions, newly available research data, ability to combine efforts with other related research, or if monitoring methods are determined too difficult or impractical to implement. Minor adjustments are expected to occur over the monitoring period to maintain completeness and feasibility of the monitoring program. 3.2.4 Anticipated Schedule The anticipated schedule for implementation, monitoring and adaptive management of the SAS habitat improvements are summarized in Table 3-3 below, and also discussed in further detail in subsequent chapters. TABLE 3-3 MONITORING AND ADAPTIVE MANAGEMENT SCHEDULE Metric Frequency Ja n Fe b Ma r Apr Ma y Ju n e Ju l y Au g Se p Oc t No v De c Microhabitat Enhancements Construct habitat features Variable     Habitat assessment Annual  Maintenance of habitat features When Necessary     Aquatic Predator Control Predator removal Semi-annual (Oct-Feb) (at minimum)   Sterling Natural Resource Center Project 3-10 Santa Ana Sucker HMMP November 2023 Metric Frequency Ja n Fe b Ma r Apr Ma y Ju n e Ju l y Au g Se p Oc t No v De c Exotic Weed Management Exotic weed removal (Years 1 - 5) Three times per year (minimum)    Exotic weed removal (Years 6+) Semi-annual (minimum)   (High Flow) Pulse Events Implementation Up to two times per year (timing will be adaptive to minimize impacts and maximize benefits)   Monitoring (Year 1) Annual (pre/post pulse)   Monitoring (Years 2+) Annual (up to 2)   Rialto Channel/Santa Ana River Amelioration Project Project Implementation Once Project Monitoring Continuous            Project Maintenance As-needed Upper Watershed SAS Population Establishment Implementation Once  Population Establishment Monitoring Semi-annual  S    Population Management Quarterly (at minimum)     Hydrology Monitoring Monitoring (Year 1) Monthly            Monitoring (Years 2+) Quarterly     Management Decisions Annual Report Annual  Management Review Annual, or more often as needed  Workplan Adjustments Annual, or more often as needed   Sterling Natural Resource Center Project 4-1 Santa Ana Sucker HMMP November 2023 CHAPTER 4 Microhabitat Enhancements (CM 21.b.i., SAS-1) The goal of this Conservation Measure is to increase the amount of SAS-suitable microhabitat within the occupied reach of the Santa Ana River. The goal will be achieved through installation of natural structures in the river to create/enhance suitable substrate/in-stream conditions for the benefit of Santa Ana sucker. A minimum of 1.5 acres of habitat will be enhanced along approximately 2.5 miles of the SAS-occupied reach of the Santa Ana River. To provide greater flexibility for implementation based on landowner access permissions, the area to be enhanced is expanded to include between the RIX outfall and Hidden Valley Wildlife Area (or as approved by USFWS and CDFW). The Supplemental BA proposes an additional 0.5 acre of microhabitat enhancements (total of 2.0 acres) to be maintained temporally during dry rainfall years (<14.7 inches2) until Upper Watershed Santa Ana Sucker Population Establishment has occurred (see CM 21.b.v). Enhancement of a minimum of 1.5 acres of microhabitat will be implemented in perpetuity. 4.1 Location, Timing, and Implementation Materials and Methods Santa Ana sucker are currently threatened by water diversions; alteration of stream channels; changes in the watershed that result in erosion and debris flows; pollution; habitat fragmentation and predation by nonnative fishes (USFWS 2010). The physical stabilization of riverbanks associated with urbanization increases river flow velocities, exacerbating downstream bank erosion, and leading to channel narrowing and bed degradation (EDAW and SMEA 2009). Narrowing results in loss of shallow-water riverine habitat and floodplain connections, eliminating variation in water depth, stream flow velocity, temperature regimes, and sediment size necessary to maintain habitat complexity required for different SAS size classes (Even and Baskin 2010). Santa Ana sucker have a wide range of life stage specific habitat requirements needed to sustain SAS populations in good health. Habitat needs range from shallow, sandy edgewater habitat for larval rearing, to medium-depth mid-channel habitat with gravel substrate for spawning, to deepwater habitat for adult holding. Habitat suitability parameters in Table 4-1 were developed by Aspen (2016) from a habitat suitability assessment of the Big Tujunga Wash SAS population (Appendix A), in addition to a literature review of previous SAS habitat suitability studies. 2 Measured in San Bernardino, CA. Sterling Natural Resource Center Project 4-2 Santa Ana Sucker HMMP November 2023 TABLE 4-1 SANTA ANA SUCKER HABITAT SUITABILITY CRITERIA Microhabitat Type Life Stage Use Substrate Type Depth (cm.) Shallow edge water Larval Rearing/holding Silt/Sand 0.2–5.0 Mid channel Juv/Adult Rearing/feeding Gravel/Cobble 11.0 to 65.0 Scout Pools Juv/Adult Holding Sand/Gravel/Cobble 31.0-71.0 Annual habitat assessment monitoring will be conducted in the SAS-occupied reach of the Santa Ana River to assess the quality of habitat available to support all life stages of SAS (See Monitoring and Adaptive Management section below). Stream reaches lacking suitable habitat for one or more life stages of SAS will be targeted for habitat enhancement (contingent on access permissions from landowners). This could include placement of wooden stake arrays, and/or large boulders/large woody debris (nodes) to increase velocity of flow, placement of gravel bar patches to provide substrate for spawning and food production, as well as creation of deeper water areas. A minimum of six (6) nodes would be installed along approximately 2.5 miles of the SAS- occupied reach of the mainstem Santa Ana River downstream of the RIX discharge (location of nodes will be subject to landowner access permissions). The nodes would create a minimum of 1.5 acres of habitat, as measured in fall. The Supplemental BA identifies an additional 0.5 acre of microhabitat enhancements (total of 2.0 acres) to be maintained temporally during dry rainfall years (≤14.7 inches) until Upper Watershed Population Establishment has occurred (CM 21.b.v). Nodes would be reinstalled on an as-needed basis to maintain habitat enhancement target acreages. Based on fish-habitat relationships observed in the Big Tujunga Wash SAS population, along with habitat suitability relationships from previous SAS studies, Aspen (2016) provided target parameters for microhabitat enhancements in the SNRC project area. Table 4-2 details the primary habitat components recommended for microhabitat enhancements, modified from Aspen (2016) Table 2. Occupied reaches within the mainstem Santa Ana River lacking these key target physical parameters would be prioritized for microhabitat enhancements (subject to landowner access permissions). TABLE 4-2 TARGET PHYSICAL PARAMETERS AND SUCCESS CRITERIA FOR MICROHABITAT ENHANCEMENTS Habitat Component Habitat Description Success Criteria Riffle/Scour Pool Swift and/or turbulent flows (1.2 to 2.4 ft/sec). Present (flow velocity able to transport sand) Coarse Substrate Gravel/Cobble/Boulder 1.5 acres minimum. Substrate cover: minimum 10% gravel/cobble Additional 0.5 acre (for a total of 2.0 acres minimum) (during dry years, until implementation of CM 21.b.v) Sterling Natural Resource Center Project 4-3 Santa Ana Sucker HMMP November 2023 The location of microhabitat enhancements within the SNRC project area would be informed by habitat assessments that identify reaches lacking one or more key target physical parameters detailed in Table 4-3. Nodes would be sited within the mainstem river or side channels to create “stepping stones” or patches of habitat to link tributary restoration projects proposed under the HCP. An example of a stepping stone habitat patch includes the creation of an island or gravel bar in a streambed composed primarily of sand. In early 2022 a pilot microhabitat enhancement study was initiated along the Santa Ana River using rounded wooden stakes (SBVMWD 2022; Appendix A). The stakes provided the opportunity to study a low-cost, low-impact, and timely strategy to manipulate velocity to enhance microhabitat conditions for SAS. Based on preliminary results from this effort an expanded project was initiated. To support the expanded effort a Section 401 Water Quality Certification for Small Habitat Restoration Projects was received from the Santa Ana Regional Water Quality Control Board on April 4, 2022 (Appendix A), with concurrence received from the California Department of Fish and Wildlife under the Habitat Restoration and Enhancement Act on May 25, 2022 (Appendix A). Stake arrays were installed in two project locations along the Santa Ana River between October and December 2022. The arrays were monitored weekly from October through December 2022. Substrate data (gravel cover) was collected during each site visit, and water quality data was collected a three time points. Data from this study indicated that the stake arrays can have a beneficial effect on enhancing stream habitat for native fishes. Though results were observed to vary between features, all stake arrays produced an increase in gravel cover (see SBVMWD 2022; Appendix A). Based on success of the 2022 pilot microhabitat enhancement, the project was expanded in 2023. Six microhabitat nodes were established in the Santa Ana River, between the Riverside Couty line and Hidden Valley Wildlife Area, with each node comprised of multiple stake arrays. To date 22 stake arrays are installed across the six habitat node locations. Data were collected monthly throughout 2023. As of mid-October 2023, 1.5 acres of microhabitat enhancement for the benefit of Santa Ana sucker have been created, with sucker observed occupying the enhancement areas (SBVMWD 2023). TABLE 4-3 MICROHABITATS ENHANCEMENT SCHEDULE Monitoring Year Timing Year 1 Late Summer through late Winter (August - February). Installation of a minimum of six node areas, or sufficient quantity to create a minimum of 1.5 acres of microhabitat enhancement. Installation of large projects will be conducted during the summer-winter to avoid the spawning season and high flow events during construction. Small projects may be constructed year-round to achieve acreage targets but will minimize impacts to SAS to the greatest extent practicable. Additional 0.5 acre of microhabitat enhancement (for a total of 2.0 acres minimum) during dry years, until implementation of CM 21.b.v. Sterling Natural Resource Center Project 4-4 Santa Ana Sucker HMMP November 2023 Years 2+ Year-round (depending on severity of potential impacts) Maintenance of enhancement sites or creation of additional enhancement sites to achieve acreage targets may be conducted year-round but will minimize impacts to SAS to the greatest extent practicable. 4.2 Monitoring and Adaptive Management Habitat assessment monitoring will be conducted throughout the year to track the suitability of habitat for SAS before, during, and following microhabitat enhancements. Quantification to demonstrate achievement of acreage targets will be measured in the fall by area of pools created, gravel/cobble substrates exposed, and other functional SAS habitat features created/enhanced. Annual monitoring will include water quality, visual estimates of substrate cover, and fish surveys. Ongoing monitoring and adaptive management will be employed to ensure successful creation and maintenance of suitable habitat for SAS. Table 4-4 summarizes the timing of the microhabitat enhancement monitoring schedule. TABLE 4-4 MICROHABITATS ENHANCEMENT MONITORING SCHEDULE Year Timing Years 1 Monthly or more frequently to detect development of suitable habitat. Fall (September) metrics will provide data for success criteria. Years 2+ Fall (September) surveys will track suitability of habitat. Adaptive management measures will be implemented should acreage targets not be achieved/maintained. 4.3 Maintenance Ongoing surveys may trigger additional maintenance of microhabitat enhancement sites. If microhabitat enhancement sites are observed to not provide suitable habitat as expected during annual habitat assessment surveys, or if SAS are not observed using habitat enhancement areas created by the nodes, maintenance of enhancement sites will be conducted to further modify the habitat to better support SAS (Table 4-5). Ongoing surveys will trigger adaptive management as needed. TABLE 4-5 MICROHABITATS ENHANCEMENT MAINTENANCE SCHEDULE Maintenance Interval All Years (1+) – Site maintenance Ongoing maintenance, as needed. Sterling Natural Resource Center Project 4-5 Santa Ana Sucker HMMP November 2023 4.4 Performance Criteria and Reporting The goal of the microhabitat enhancement work is to enhance perennial stream habitat within the occupied reach of the mainstem Santa Ana River. At least 1.5 acres of habitat will be enhanced and maintained in-perpetuity. The Supplemental BA identifies an additional 0.5 acres of enhancement (total of 2.0 acres) to be created and maintained during dry rainfall years (<14.7 inches) temporally until Upper Watershed Population Establishment has occurred (see Chapter 9). Quantification of acreage enhanced will be measured in the fall, by area of pools created, gravel/cobble substrates exposed (minimum of 10% gravel/cobble coverage), and other functional SAS habitat features created/enhanced. Enhanced habitat is anticipated to provide suitable habitat for all life stages of SAS, in perpetuity. Successful enhancement will be demonstrated through achievement of acreage goals and presence of SAS, as shown in Table 4-6. TABLE 4-6 MICROHABITATS ENHANCEMENT SUCCESS CRITERIA Milestone Success Criteria Remedial Measures All years Habitat nodes installed/constructed as designed. Microhabitat enhancement areas support SAS physical parameters (see Table 4-2) and encompass a minimum of 1.5 acres. An additional 0.5 acres (total of 2.0 acres) will be maintained during dry rainfall years until Upper Watershed Population Establishment has occurred. Documented presence of SAS utilizing or within the vicinity of enhanced habitat. Modify installation/construction to meet initial design criteria. Modify enhancement sites to provide SAS target physical parameters. Modify enhancement sites to provide SAS target physical parameters. The HMMP annual monitoring report will include field notes and datasheets from individual monitoring visits throughout the year. The annual report will include summaries of the project area habitat assessments, documented occurrences of SAS, detailed habitat characteristics of each microhabitat enhancement site, a review of progress of attainment of the performance criteria, and any recommended remedial measures. 4.5 In-Perpetuity Monitoring and Management Once the monitoring associated with the microhabitat enhancements has met the Year 1 performance criteria, and concurrence of achievement of success criteria has been received from the USFWS and CDFW, monitoring associated with this conservation measure will continue in perpetuity. If the HCP is adopted prior to or during implementation of this HMMP, the monitoring and reporting associated with this measure will be carried forward into the HCP’s monitoring and reporting program. Sterling Natural Resource Center Project 5-1 Santa Ana Sucker HMMP November 2023 CHAPTER 5 Aquatic Predator Control Program (CM 21.b.ii., SAS-2) The goal of this Conservation Measure is to reduce the abundance of nonnative aquatic predators within the Santa Ana River, thereby increasing the amount of suitable habitat for SAS. The goal will be achieved through the implementation of field methodology to reduce the abundance and distribution of SAS aquatic predators. A minimum of one control effort, focusing on areas identified during native fish surveys as needing aquatic predator control along the Santa Ana River will be implemented immediately preceding the start of the SAS spawning season. The Supplemental BA proposes a minimum of two control efforts per year, to be implemented temporally until Upper Watershed Santa Ana Sucker Population Establishment has occurred (Chapter 9), at which point the effort will be reduced to a minimum of one time per year. Control will be implemented in-perpetuity. Relevant permitting from the USFWS and/or CDFW (e.g., state scientific collection permit, MOU, etc.), as appropriate, will be secured prior to implementation of the Aquatic Predator Control Program. 5.1 Location, Timing, and Target Exotic Species The SAS recovery plan identifies predation by nonnative species as a threat to SAS population recovery (USFWS 2017). Therefore, an aquatic predator control program will be implemented to target and remove concentrated densities of potential nonnative predator species, including exotic fish, amphibians, and reptiles. Targeted removal efforts and targeted species shall be based on the most recent native fish survey data. Annual native fish surveys conducted since 2015 in the Santa Ana River have identified multiple nonnative aquatic predators of SAS (USGS 2023). The four most abundant nonnative aquatic predators observed were mosquito fish (Gambusia affinis), American bullfrog (Lithobates catesbeianus), largemouth bass (Micropterus salmoides), and yellow bullhead catfish (Ameiurus natalis). If predator hotspots are identified, nonnative aquatic predators will be removed at least one time per year, occurring immediately preceding the spawning season using electrofishing or other techniques identified in the Nonnative Aquatic Species Control Plan (ICF 2023; Appendix B). The Supplemental BA proposes to temporally increase the number of control efforts to a minimum of two times per year until implementation of the Upper Watershed Santa Ana Sucker Population Establishment has occurred (Chapter 9). See below for a proposed schedule for conducting nonnative aquatic control (Table 5-1). Sterling Natural Resource Center Project 5-2 Santa Ana Sucker HMMP November 2023 TABLE 5-1 NONNATIVE AQUATIC PREDATOR CONTROL SCHEDULE Monitoring Year Timing Year 1 August 1 to February 14 Control efforts will occur outside of the SAS spawning season focusing on areas of highest ecological value to SAS or areas that may provide source populations of predators. Years 2+ Same as above, or expanded effort as warranted, in perpetuity. Aquatic predator control efforts were initiated in 2015 and have occurred on an annual basis coincident with annual native fish surveys. Table 5-2 provides a summary of aquatic predator control efforts. TABLE 5-2 ANNUAL COUNT OF NONNATIVE AQUATIC PREDATORS REMOVED FROM THE SANTA ANA RIVER Species 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total African Clawed Frog 0 0 13 0 1 2 0 2 2 20 Black Bullhead 0 0 0 0 12 18 1 0 0 31 Bluegill Sunfish 0 0 0 0 0 0 1 1 0 2 Bullfrog 0 182 15 1 1 4 30 36 0 269 Channel Catfish 0 0 0 0 0 3 12 479 50 544 Common Carp 0 0 0 0 16 12 3 8 5 44 Fathead Minnow 0 0 0 1 1 0 16 0 0 18 Green Sunfish 0 16 1 0 35 0 48 7 12 119 Largemouth Bass 0 1 0 9 497 237 206 101 22 1073 Prickly Sculpin 0 0 1 0 3 0 0 0 1 5 Red Swamp Crayfish 3 45 39 0 2 8 89 339 0 525 Red-Eared Slider 0 0 0 0 1 0 0 2 0 3 Softshell Turtle 0 0 1 0 1 0 1 0 0 3 Tilapia 0 0 1 0 0 0 0 0 0 1 Western Mosquitofish 414 4154 1236 34 376 58 280 2533 210 9295 Yellow Bullhead 496 1254 121 39 620 1006 525 2328 91 6480 Total 913 5652 1428 84 1566 1348 1212 5836 393 18432 Sterling Natural Resource Center Project 5-3 Santa Ana Sucker HMMP November 2023 5.2 Control Methods See the Nonnative Aquatic Species Control Plan (ICF 2023; Appendix B) for various methods to control predator species. Relevant permitting from the USFWS and/or CDFW (e.g., state scientific collection permit, MOU, etc.), as appropriate, will be secured prior to implementation of control measures. 5.3 Monitoring and Adaptive Management As shown in the monitoring schedule in Table 5-3, at minimum, annual surveys will be conducted as part of juvenile and/or adult native fish surveys to identify the species, distribution, and density of nonnative aquatic predators. The identification of predator hotspots will trigger the planning for removal efforts following surveys. Survey monitoring may also identify habitat features supporting the presence of nonnative aquatic predators, such as deep pools. Habitat features supporting predator hotspots may be recommended for modification to reduce the threat to SAS. Subsequent surveys following modifications can monitor the effectiveness of habitat modification efforts. TABLE 5-3 NONNATIVE AQUATIC PREDATOR CONTROL MONITORING SCHEDULE Year Timing Year 1+ Minimum annual survey to identify potential nonnative aquatic predator hotspots(fall), and minimum of one control effort annually. Supplemental BA proposes temporal increase in control effort to two times per year until the Upper Watershed Santa Ana Sucker Population Establishment has occurred). 5.4 Performance Criteria and Reporting The SAS recovery plan calls for implementation of management to reduce competition and predation by nonnative species to levels determined to be necessary for the maintenance of viable SAS populations. See Table 5-4 for success criteria associated with nonnative aquatic species management. TABLE 5-4 NONNATIVE AQUATIC PREDATOR CONTROL SUCCESS CRITERIA Milestone Success Criteria Remedial Measures Year 1 Densities of aquatic predators are low and not causing localized extirpation of native fishes within the mainstem river Conduct targeted removal efforts at locations with high densities of aquatic predators. Potential habitat manipulation if habitat features are identified that support high predator densities. Sterling Natural Resource Center Project 5-4 Santa Ana Sucker HMMP November 2023 Milestone Success Criteria Remedial Measures Year 2+ Same as above but will also include mainstem tributary streams. Same as above, as necessary. Tributary streams will be sequentially enhanced through targeted removal efforts. The HMMP annual monitoring report will include field notes and datasheets from individual monitoring visits throughout the year. The annual report will include the list of detected nonnative aquatic predators, their relative abundance and distribution, a review of progress of attainment of the performance criteria and recommended remedial measures, where relevant. 5.5 In-Perpetuity Monitoring and Management Monitoring and control of nonnative aquatic predators within the Santa Ana River will continue in-perpetuity. Monitoring and management activities will be summarized in the HMMP annual report submitted to the USFWS and CDFW. If the HCP is adopted prior to or during implementation of this HMMP, the monitoring and reporting associated with this measure will be carried forward into the HCP’s monitoring and reporting program. Sterling Natural Resource Center Project 6-1 Santa Ana Sucker HMMP November 2023 CHAPTER 6 Exotic Weed Management Program (CM 21.b.iii., SAS-3) The goal of this Conservation Measure is to reduce competitive stress to native vegetation by decreasing nonnative plant cover along approximately 4.2 miles of the Santa Ana River between Rialto Channel and the Mission Boulevard Bridge. The goal will be achieved through the implementation of field methodology to reduce the abundance and distribution of perennial, targeted nonnative plant species, with a focus on giant reed (Arundo donax), tamarisk (Tamarix spp.), and castor bean (Ricinus communis). Total cover of nonnative perennial riparian vegetation will total less than 25 percent and total cover of giant reed, tamarisk, and castor bean, of which these three species make up a portion of the total nonnative vegetation cover, will total less than 5 percent. To provide greater flexibility for implementation based on landowner access permissions, the area to be managed has been revised to encompass between Market Street Bridge and Anza Creek, in Riverside County. 6.1 Location, Timing, and Implementation Methods Nonnative plant removal efforts will occur within a 4.2-mile stretch of the Santa Ana River between Rialto Channel and the Mission Boulevard Bridge, or, depending on landowner permissions, along a similar length of river downstream of the Riverside County-San Bernardino County line (e.g., Market Street downstream to Anza Creek) (see Figure 2-2). Predominant habitats within this area of the Santa Ana River are willow-cottonwood woodland and riparian scrub (dominated by mulefat and willow), along with sandy un-vegetated areas, patches of freshwater emergent and marsh habitat, and seasonal open water. The majority of the plant canopy and cover is from native species including black willow (Salix gooddingii), Fremont cottonwood (Populus fremontii), and mule fat (Baccharis salicifolia), however Nonnative plant species are also present. The exotic weed management program will be implemented in-perpetuity. During the first three years, management efforts will occur within approximately one-third of the total 4.2-mile stretch (approximately 1.4 miles) each year, to achieve management along the entire length after three years. These initial focused management efforts will be followed by regularly timed maintenance and monitoring visits to verify target exotic plants are kept under control. This is discussed further later in this section. For the purposes of this plan, invasive exotic species are defined as species listed by the California Invasive Plant Council (Cal-IPC 2006) as High or Moderate threats to California Sterling Natural Resource Center Project 7-3 Santa Ana Sucker HMMP November 2023 wildlands, and species considered to be potentially problematic within this stretch of the river (e.g., castor-bean [Ricinus communis]). Problematic perennial exotic species previously detected along the Santa Ana River within this stretch of the river include tamarisk (Tamarix sp.), castor- bean, tree of heaven (Ailanthus altissima), tree tobacco (Nicotiana glauca), and African fountain grass (Pennisetum setaceum). Table 6-1 reviews nonnative plant species (i.e., ‘target’ species) that have been detected or have the potential to occur along the Santa Ana River, along with potential control methods. Information on life form, growth habitat, and removal/eradication methods are provided from Invasive Plants of California’s Wildlands (Bossard et al. 2000) and the California Invasive Plant Council (Cal-IPC). Potential control methods are presented to help illustrate possible methods within this plan. Specific management methods applied will consider best available science and may be modified over time. Use of herbicides would be limited to those approved for aquatic settings (e.g., Rodeo® and Garlon® 3A, etc.). This list will be verified on an annual basis to ensure the plan only utilizes approved products. Because of the sensitivity of aquatic organisms, physical removal of target species with hand tools will be prioritized to the extent feasible. However, selective use of herbicides is considered necessary to conduct effective control due to the ecology of the target species. All herbicide use shall be conducted and in accordance with product label instructions and applicable County of San Bernardino/County of Riverside and state laws and requirements. Herbicides shall only be applied by personnel with a qualified applicator license (QAL) and care shall be taken to avoid accidental over-spray on non-target (i.e., native) species. TABLE 6-1 PERENNIAL EXOTIC WEED SPECIES DETECTED OR POTENTIALLY OCCURRING IN THE HMMP TREATMENT AREA Scientific Name1 Common Name Life Form General Treatment Approach Cal-IPC Rating2 Ailanthus altissima Tree of heaven Perennial tree Hand-pull seedlings if the root system can be removed, foliar spray of smaller sprouts in spring with glyphosate, direct application of triclopyr to bark of young stems, or cut larger stems and direct application of glyphosate Moderate Arundo donax Giant reed Perennial grass Foliar spray of leaves or direct application of glyphosate to cut stems between late spring and fall High Coraderia sp. Pampas grass Perennial grass Physically remove ensuring the entire crown and top section of roots are removed, or apply postemergent glyphosate High Eucalyptus sp. Eucalyptus Perennial tree Stump cut and grind, or direct application of triclopyr or glyphosate to outer portion of cut stump (best results in fall). Foliar application of triclopyr or glyphosate to resprouts when 3 to 5 feet tall. Moderate Lepidium latifolium Perennial pepperweed Perennial Foliar application of glyphosate, triclopyr or chlorsulfuron (Telar®) High Sterling Natural Resource Center Project 7-4 Santa Ana Sucker HMMP November 2023 Nicotiana glauca Tree tobacco Perennial tree Hand-pull if the root system can be removed, or cut stem and apply triclopyr or glyphosate Moderate Myoporum laetum Myoporum (Ngaio) Perennial tree Hand-pull seedlings, or cut mature specimens at ground level and saturate cut stem surface with glyphosate Moderate Pennisetum setaceum African fountain grass Perennial grass Foliar or direct application of postemergent glyphosate Moderate Phoenix canariensis Canary island palm Perennial tree Hand-pull seedlings, cut mature specimens at stem base, or apply triclopyr Limited Ricinus communis Castor-bean Perennial scrub Hand-pull if the root system can be removed, or cut stem and apply glyphosate Limited Schinus molle Peruvian pepper tree Perennial tree Frill cuts (ax or hatchet cuts on downward angle through the bark into the sapwood) and apply triclopyr in cuts, or cut stem and apply triclopyr Limited Schinus terebinthifolius Brazilian pepper tree Perennial tree Frill cuts (hatchet or ax cuts on downward angle through the bark into the sapwood) and apply triclopyr in cuts, or cut stem and apply triclopyr Limited Tamarix spp. Tamarisk Perennial tree Very small specimens can be hand- pulled if the entire root system can be removed, or cut the stem close to the ground and apply triclopyr High 1. If additional problematic nonnative plant species not included in this table are detected, they will be addressed and controlled in accordance with the project performance standards. 2. California Invasive Plant Council (Cal-IPC 2006) lists nonnative species that are High, Moderate, or Limited threats to California wildlands. A qualified biologist (botanist or restoration ecologist with at least five years of experience) and landscape contractor (with successful experience on at least five projects involving exotic plant treatment and native habitat restoration) will be retained to implement the exotic plant treatment program. The initial exotic plant removal effort will be conducted outside the bird nesting season (i.e., September 16 to March 14), or the project biologist will conduct pre-activity surveys (within three days of treatments) to verify nesting birds will not be disturbed by the work. The contractor may carry equipment (e.g., chainsaw) and hand tools into the treatment area but no vehicles will enter the riverbed. Prior to the commencement of work, the biologist and contractor will coordinate and review health and safety protocols, project goals and performance criteria, staging areas and access routes, treatment methods for different target species, and measures to protect native plants, wildlife and water quality. Some target species will be killed in place and allowed to decompose. Additionally, some nonnative plant debris may be left as beneficial organic matter and larger cut stems (e.g., logs and branches; large woody debris [LWD]) may be used to improve in-stream micro-habitat structure and function. Any nonnative plant debris with seed and/or live vegetative material (i.e., stolons and rhizomes) will be removed and properly disposed offsite. Once the initial exotic plant Sterling Natural Resource Center Project 7-3 Santa Ana Sucker HMMP November 2023 removal effort is complete, as documented by the project biologist, the project will enter the maintenance phase. The exotic plant treatment program is scheduled to commence in 2023 and will continue in perpetuity. Methodology will follow those outlined herein, and in Exotic Weed Management Plan (IERCD 2023; Appendix C). 6.2 Maintenance Maintenance will encompass ongoing treatment and removal of nonnative plant species on an as needed basis in perpetuity. If other problematic perennial nonnative plant species (other than those listed in Table 6-1) are detected, they will be treated and controlled in accordance with the goals of this plan. Due to the prevalence of native plant species in the treatment area, it is expected that native plants will readily volunteer in locations where exotic plants are removed. TABLE 6-2 EXOTIC PLANT CONTROL MAINTENANCE SCHEDULE Maintenance Interval Years 1-3 – Site maintenance Three times per year (minimum) Years 4+ – Site maintenance Twice per year, or more frequently, as required As a guideline, nonnative plant species management actions will occur approximately three times during Years 1, 2, and 3, and bi-annually (twice a year) in perpetuity. The general framework maintenance schedule is provided in Table 6-2; however it is anticipated that frequency may vary based on monitoring results, presence of nonnative plant species, and continuing attainment of success criteria. An important component of the maintenance phase is consistent monitoring on the presence of nonnatives plant species, appropriate methods and timing of control, and addressing issues in a timely manner. It is anticipated that maintenance will occur in the late winter and early fall outside of the bird nesting season (March 15 to September 1) to maximize the effectiveness of treatments. Follow-up treatments of re-sprouts and new volunteers are expected to create minimal disturbance (i.e., hand-pulling and direct/spot application of herbicide). Consistent with the initial nonnative plant removal phase, some nonnative plant debris may be killed and left in place as beneficial organic matter/structure. However, any nonnative plant debris with seed and/or live vegetative material (i.e., stolons and rhizomes) will be removed and properly disposed offsite. 6.3 Monitoring and Adaptive Management Prior to initial treatment all habitat areas that may be managed and monitored through this HMMP will be assessed for the baseline ground cover of perennial nonnative vegetation. Aerial imagery will be used, followed by field-verification using a global positioning system to Sterling Natural Resource Center Project 7-4 Santa Ana Sucker HMMP November 2023 document patch location and size (area), to quantify the approximate area occupied by each nonnative plant species of interest. Methods to quantify vegetation cover using transects (line/belt) or releve will not be used. Success will be determined when comparing the overall ground cover of perennial nonnative vegetation within the management area to that of the baseline condition, not to a non-managed control site. A control site will not provide a meaningful comparison, nor will a non-managed site be protected in a degraded state. Aerial imagery will also be used to document the overall amount of native habitat found with treatment areas. The amount of native vegetation will not be used to determine success. Following initial treatment efforts and attainment of success criteria, monitoring and adaptive management will continue in-perpetuity. On going monitoring will document the presence and location of nonnative plant species for implementation of management actions. A list of nonnative plant species detected, relative abundance, location, treatment methodology and treatment effectiveness will be maintained. Monitoring will support an adaptive management approach. Adaptive management (AM), also known as adaptive resource management (ARM), is a structured, iterative process of optimal decision making in the face of uncertainty, with an aim of reducing uncertainty over time via site monitoring. As part of this process, it is important to anticipate potential (unforeseen or unpredictable) problems and utilize formal and informal monitoring information to learn and adapt in order to tailor maintenance (remedial measures) and management decisions to address specific site conditions. This form of management will allow for response to unforeseen or unpredictable problems early and maintain progress toward the performance criteria and project goals. For example, an anticipated solution to a problem in Years 1 through 3 of the nonnative plant management program may be adjusted or replaced with another solution in Year 4 as monitoring results provide new insight to understanding/addressing management strategies. Examples of potential problems and solutions that may be implemented during the post- implementation maintenance and monitoring phase are provided below. Although potential solutions are listed these may evolve over time based on monitoring and adaptive management. The actual problems encountered, when relevant, and the adaptive management approach taken will be discussed in each annual monitoring report.  Potential Problem: Nonnative plant treatment deemed ineffective for one or more species. Potential Solutions: Identify and implement one or more alternative treatment methods and monitor effectiveness.  Potential Problem: Cover of one or more nonnative plant species exceeds performance criteria. Potential Solutions: Implement alternative treatment method(s), increase frequency of maintenance visits, installation of native plant cuttings (e.g., willow, cottonwood, and/or mule fat) to occupy space that may be otherwise occupied by nonnative plant species.  Potential Problem: Offsite (e.g., upstream) uncontrolled population of nonnative plant species causing significant adverse establishment of nonnative plant species in project treatment area. Potential Solutions: Confirm property ownership of location(s) where uncontrolled population of nonnative plant species occurs and determine if the property owner is required Sterling Natural Resource Center Project 7-3 Santa Ana Sucker HMMP November 2023 or willing to treat the population, or would provide access permissions to other entities for treatment (contingent on right-of-entry permission). If nonnative plant species performance criteria are not met, remedial measures will be implemented, as necessary. The specific approach for remedial measures would be determined by site conditions, progress toward attainment of performance criteria, and recommendations collaboratively developed by the biologist, maintenance contractor, and the Project Sponsor. 6.4 Performance Criteria and Reporting Performance criteria are provided to verify the exotic plant management program successfully achieves appropriate standards for this mitigation conservation measure. Success criteria established in the Biological Opinion states that total cover of nonnative riparian plant species will total less than 25 percent, and total cover of giant reed, tamarisk, and castor bean will total less than 5 percent (Table 6-3). TABLE 6-3 EXOTIC PLANT MANAGEMENT PROGRAM SUCCESS CRITERIA1 Milestone Success Criteria Remedial Measures Years 1-3 (Initial treatment phase) Treatment of target species (see Table 6-2) within approximately one-third of the total 4.2-mile stretch (approximately 1.4 miles) each year to achieve management along entire length after three years. Total cover of targeted, perennial nonnative riparian plant species will total <25% and total cover of giant reed, tamarisk, and castor bean will total <5%. Increase frequency of treatment. Revise management actions that are ineffective. Year 4+ Maintain success criteria along 4.2 mile stretch: total targeted, perennial nonnative riparian plant cover <25%, total cover of giant reed, tamarisk, and castor bean <5%. Intensify treatment and control (i.e., man hours and/or frequency of maintenance visits) as needed. Revise management actions that are ineffective. Remain current on best available science on treatment methodologies. 1. For this project perennial exotics are defined as species listed as “Moderate” or “High” threats to California wildlands by the California Invasive Plant Council (Cal-IPC 2006) and species considered to be potentially problematic within this stretch of the river (e.g., castor-bean [Ricinus communis]). Observations of nonnative plant species will be recorded incidentally in the entire treatment area during annual survey efforts occurring along the Santa Ana River (native fish surveys, microhabitat enhancement, avian surveys, Riverwalk, etc.). The HMMP annual monitoring report will include field notes and datasheets from individual monitoring visits throughout the year. The annual summary will include a list of nonnative plants documented within the project area, estimates of cover, the type and location of management treatments applied, a review of progress of attainment of the performance criteria, any recommended remedial measures, and representative photographs. Aerial imagery will be taken at minimum once every 5-years to assess progress across the landscape. Changes to the landscape (e.g., fire, flood, etc.) may confer a need to take additional aerial imagery. Sterling Natural Resource Center Project 7-4 Santa Ana Sucker HMMP November 2023 6.5 In-Perpetuity Monitoring and Management Monitoring and management of nonnative riparian plant species within the 4.2-mile stretch of the Santa Ana River will continue in-perpetuity. Monitoring and management activities will be summarized in the annual HMMP report submitted to the USFWS and CDFW. If the HCP is adopted prior to or during implementation of this HMMP, the monitoring and reporting associated with this measure will be carried forward into the HCP’s monitoring and reporting program. Sterling Natural Resource Center Project 7-3 Santa Ana Sucker HMMP November 2023 CHAPTER 7 High Flow Pulse Events (SAS-4) The goal of mitigation measure SAS-4 from the SNRC EIR is to create high flow pulse events to flush fine sediment from within the SAS occupied reach of the Santa Ana River. The EIR anticipated that specific methodology to achieve this goal would be identified in the HMMP: SAS-4: High Flow Pulse Events. The HMMP will identify means to create high flow pulse events as needed based on substrate conditions, up to 2 times per year. These augmented flow events would be designed to flush out fine sediment from the upstream reach of the affected river segment, and could be implemented through a cooperative agreement with the City of San Bernardino Municipal Water Department or another method. Based on recent field efforts in the Santa Ana River, smaller, discretely timed pulse events3, and small-scale manipulation of velocity, have been observed to achieve the intent of this measure: flushing fine sediment from within the SAS occupied reach of the Santa Ana River, thereby increasing the surface area of foraging and spawning habitat by exposing gravels and cobbles that were previously covered by silts and sands. These alternate strategies (explained in more detail below) have the benefit of being readily implementable and can achieve results in targeted locations. Consequently, for the remainder of this chapter the use of “high flow” has been omitted, instead the focus is on pulse events. 7.1 Location, Timing, and Implementation Methods In natural channels, periodic flow pulse events are essential to SAS recovery because they deliver new, coarse (gravel and cobble) substrate and scour encroaching vegetation and fine sediment from occupied habitat. Substrate complexity is necessary to support a viable population, as habitat requirements often change depending on life stage. Optimal stream conditions consist of coarse substrates, with a mixture of gravel or cobble and sand, and a combination of shallow riffle and deeper run and pool habitat (USFWS 2017). Shallow riffles with gravel are necessary for spawning, as fertilized eggs often adhere to the gravel substrate (Greenfield et al. 1970). Riffles are also often utilized as rearing habitat by early life stage SAS, especially in areas with adequate riparian cover, however as individuals mature into adulthood there is strong selection for larger, deeper pool habitat (Moyle and Yoshiyama 1992; Moyle 2002). Regardless of habitat preference (riffle, pool, run) substrate complexity is crucial for the success of SAS populations. A discharge study conducted by Environmental Science Associates (ESA) concluded that a diversion of 6-10 MGD (9.3-15.5cfs) from the Santa Ana River at the RIX discharge would 3 Sourced from RIX/Rialto Treatment Plants. During nonnative aquatic predator control efforts in Rialto Channel and in the vicinity of the confluence of Rialto Channel and the Santa Ana River, and the RIX outfall location, a request is made to Rialto/RIX to cease discharge for the duration of the predator control effort (typically no more than several hours in duration). Ceasing discharge allows for increased efficiency in capturing nonnative predators and removing them from the system. When the treatment plants resume discharge, this creates the references pulsed event. Sterling Natural Resource Center Project 7-4 Santa Ana Sucker HMMP November 2023 reduce total instream flow by 18-21 percent (ESA 2015). The results also suggest that while flow reductions up to around 12 MGD (18.5cfs) at RIX would not markedly change the velocity and sediment patterns in the Santa Ana River, reductions of more than 12 MGD would begin to make significant changes in the swifter, coarser substrate upper reaches that would change them to resemble the slower, sandier lower reaches. Additionally, incremental effects of sand deposition resulting from a reduction in velocity could reduce egg development/survival, increase egg predation, or reduce the fitness of adults as they expend greater energy in search of suitable spawning habitat. As such, conservations measures SAS-1 Microhabitat Enhancements (Chapter 1) and SAS-4 were developed to offset these potential impacts. As mentioned above, flow pulse events will be generated as needed (up to two times per year), based on substrate conditions, to flush out fine sand/sediment and supply or uncover coarser gravel and cobble within the mitigation site. Pulsed flows may be facilitated through a cooperative agreement between EVWD and a local HCP partner such as the City of Rialto, through the use of local groundwater wells, and/or potential manipulation of discharge from the Rialto and/or RIX treatment plants. Valley District, on behalf of EVWD is investigating alternative sources of water (e.g., wells) that could be sited adjacent to Rialto Channel and/or along the Santa Ana River to serve as a source of supplemental water supply for various habitat improvement projects. The alternative source(s) could be used for multiple purposes including reducing water temperature in Rialto Channel and the Santa Ana River during summer months, or artificially creating pulse flow events to refresh substrate conditions. Though this EIR mitigation measure references “high” flow pulse events, should manipulation of discharge from the RIX/Rialto Treatment Plants or supplemental flow from other sources, achieve desired beneficial substrate condition outcomes using lower flow volumes (compared to a high flow event), this option may be pursued. Timing of flow pulses will consider the SAS reproductive season to facilitate improvements to spawning substrate (Table 7-1). SAS spawn over gravel beds in flowing water where females deposit eggs in the fine gravel substrate. Eggs typically hatch within 360 hours (15 days) (Greenfield et al. 1970) and larval hatchlings congregate in the shallow, slow-moving water along the stream margin (Moyle 2002). This measure will initially be implemented using pulsed flows from the Rialto and/or RIX Treatment Plants. Three representative reaches, each 100 meters (m) long, downstream of the RIX outfall, will be selected to measure substrate conditions prior to and after the pulsed event. Substrate conditions will be documented prior to and immediately following the pulsed event to determine potential changes to percent coverage of sand, gravel, and cobble. Based on observations, changes to the timing and intensity of the pulses may be recommended. As other sources of supplemental flow become available, releases from these sources will also be tested to determine methodology that produces the greatest desired effect. Pulse events occurred in fall 2019 and fall 2022, associated with nonnative aquatic predator removal events. Sterling Natural Resource Center Project 7-3 Santa Ana Sucker HMMP November 2023 TABLE 7-1 FLOW PULSE SCHEDULE Monitoring Year Timing Year 1 Prior to February 15 and/or after June 15 (depending on storm season and presence of larval native fishes) Years 2+ Same as in Year 1 – If the monitoring program determines appropriate substrate and/or flow conditions are not being met under the current flow pulse program, future timing and intensity of pulses will be modified. Alternate sources of supplemental flow to create pulsed flow events will be tested as they become available. 7.2 Monitoring and Adaptive Management Substrate conditions within each 100m reach will be measured prior to and following each flow pulse event. Monitoring will consist of measuring (estimating) percent cover of sand, gravel, and cobble. As mentioned, pulsed events will initially rely on manipulation of discharge from the Rialto and/or RIX Treatment Plants. Other sources of supplemental flow to create pulsed events will be investigated as they become available. Implementation of pulsed events up to two times per year will initially fulfill performance criteria; however as alternative sources of supplemental water become available to create pulsed events, data collected from monitoring tested strategies will be used to inform the implementation of methodology that produces the greatest benefit to SAS substrate conditions (as measured by highest percent increase in gravel and cobble cover following the implementation of pulsed flow event) (Table 7-2). TABLE 7-2 HYDROLOGY MONITORING SCHEDULE Monitoring Year Timing Year 1 At least 2 monitoring surveys (pre- /post-monitoring per pulse event) Years 2+ Annually (post-pulse event) 7.3 Performance Criteria and Reporting Performance criteria during initial years will largely be based on implementation of up to two pulsed events per year using manipulation of discharge from the Rialto and/or RIX Treatment Plants. During these initial years, different strategies will be employed to effect the greatest habitat uplift. Data collected following implementation of these different pulsed flows will be used to direct future/ongoing implementation. If performance criteria are not met, implementation of remedial measures will be investigated. The specific approach to remedial measures will be determined by site conditions, progress toward attainment of performance criteria, and recommendations collaboratively developed between the Project Sponsor, the USFWS and CDFW. Sterling Natural Resource Center Project 7-4 Santa Ana Sucker HMMP November 2023 TABLE 7-3 FLOW PULSE PERFORMANCE CRITERIA Milestone Success Criteria Remedial Measures Year 1 Mean gravel cover >10% upstream of Riverside Avenue Bridge Modify flow pulse timing and/or intensity to facilitate appropriate substrate conditions. Year 2+ Same as above Same as above, as necessary The HMMP annual monitoring report will include field notes and datasheets from individual monitoring visits throughout the year. The annual report will include a description of hydrologic monitoring methods and collected data, a review of progress of attainment of the performance criteria, any recommended remedial measures related to flow pulses, and representative photographs. 7.4 In-Perpetuity Monitoring and Management Monitoring and management of pulsed flow events will continue in-perpetuity. Monitoring and management activities will be summarized in the annual HMMP report submitted to the USFWS and CDFW. If the HCP is adopted prior to or during implementation of this HMMP, the monitoring and reporting associated with this measure will be carried forward into the HCP’s monitoring and reporting program. Sterling Natural Resource Center Project 8-1 Santa Ana Sucker HMMP November 2023 CHAPTER 8 Rialto Channel / Santa Ana River Water Temperature Amelioration Project (CM 21.b.iv, SAS-5) The biological opinion calls for the installation of groundwater wells/storage tank adjacent to Rialto Channel to provide supplemental cool water to reduce water temperatures in Rialto Channel to tolerable levels (less than 86 degrees Fahrenheit) during summer months. Significant effort was employed to determine an appropriate location for wells/tank(s); however, a number of constraints impeded a final solution: lack of willing landowners to sell or lease property; the presence of Delhi Sands flower-loving fly habitat adjacent to Rialto Channel; close proximity to the City of San Bernardino’s wastewater treatment plant and the potential for a well to interfere with operations. A temporal solution was also investigated: the use of water-cooling towers sited within the Rialto Treatment Plant to cool the effluent prior to its discharge into Rialto Channel. However, this proposal was not financially viable, and would require significant consumption of power. New data received from the City of Rialto also highlighted that a new approach to this measure may be warranted: comparison of influent and effluent water temperature from the City of Rialto’s treatment plant identified that wastewater is entering the treatment plant at high temperatures. This discovery raised the question of whether it might be better to identify locations within Rialto’s wastewater pipeline system where mitigation measures could be implemented to reduce temperatures prior to reaching the treatment plant. As a result of the aforementioned constraints, and as required in the opinion, we have submitted a Supplemental BA with a revised Conservation Measure that will achieve the biological objectives analyzed in the opinion. The revised Conservation Measure proposes funding to be committed by EVWD to contribute towards implementation of a measure(s) (project) to ameliorate Rialto Channel and/or Santa Ana River water temperatures to <86 degrees Fahrenheit. Proposed measures/strategies to reduce water temperature will be developed following completion of a larger-scale water temperature monitoring study (described below, but to be completed by the Upper Santa Ana River HCP applicants). 8.1 Location, Timing, and Implementation Methods 8.1.1 Water temperature monitoring will be implemented along Rialto Channel, from the Rialto Treatment Plant outlet to the confluence of Rialto Channel and the Santa Ana River, and downstream along the Santa Ana River to River Road (Figure 8-1). Temperature data loggers (e.g., HOBO Pendant Temp/Light 64K) will be deployed and will record on 1-hr interval Sterling Natural Resource Center Project 8-2 Santa Ana Sucker HMMP November 2023 frequency. The loggers will remain in place year-round but may be temporarily removed during storm events to prevent loss of equipment. Lost/stolen data loggers will be replaced as necessary. Data will be downloaded monthly. The goal is to generate a continuous water temperature dataset for Rialto Channel and the Santa Ana River which will be used to develop management actions. Water temperature data will be used to create a heat map to identify locations, seasonality, timing, and duration of water temperatures >86 degrees Fahrenheit (water temperatures above 86 ºF are likely a limiting factor to movement and distribution of SAS (USFWS 2010)). The heat map will be reviewed to investigate potential locations where water temperature amelioration actions may be undertaken. Modeling will also be completed to determine locations, seasonality, timing, and volumes of cool water input needed to reduce water temperatures to <86 degrees Fahrenheit. Potential measures to cool water may include installation of a liner and/or shading along Rialto Channel, and installation of new wells/refurbishment of existing wells along the Santa Ana River to provide cool water environmental flow releases. The proposed implementation schedule for the study is provided in Table 8-1. TABLE 8-1 WATER TEMPERATURE STUDY, AMELIORATION PLAN DEVELOPMENT, AND AMELIORATION MEASURE IMPLEMENTATION SCHEDULE Monitoring Year Timing Year 1 Deploy data loggers within Rialto Channel, and along the Santa Ana River from Rialto Channel downstream to River Road Bridge. Year 1, 2 Analyze water temperature data and create a spatial and temporal heat map of Rialto Channel and the Santa Ana River. Model potential locations, timing, and volume of cool water input needed to ameliorate water temperatures to <86 degrees Fahrenheit. Investigate and recommend other potential strategies/measures that can be implemented to ameliorate water temperatures to <86 degrees Fahrenheit. Implement Same as in Year 1 – If the monitoring program determines appropriate temperature conditions are not being met under the current supplemental water program, future timing, water supply, and temperature requirements may be modified. Continue water temperature monitoring, replace lost/damaged data loggers on an as-needed basis. Year 3+ Implement at least one water temperature amelioration measure/action/project prior to the end of Year 3. Ongoing collection and analysis of water temperature data to develop a better understanding of spatial and temporal trends in water temperature along the Santa Ana River and ensure that implementation of water temperature amelioration methodology continues to be deployed at appropriate locations. Success criteria are identified below, EVWD will contribute $1,000,0004 towards the implementation of at least one water temperature amelioration measure (Table 8-2). 8.2 Monitoring and Adaptive Management Water temperature monitoring within Rialto Channel and the Santa Ana River will occur in- perpetuity. As previously described, data will be used to generate a spatial and temporal heatmap of Rialto Channel and the Santa Ana River to identify locations and seasonality of water 4 Cost estimate is based on approximate costs to install a new well. Sterling Natural Resource Center Project 8-3 Santa Ana Sucker HMMP November 2023 temperatures ≥ 86 ºF. Following development of the heatmap, modeling will be conducted to determine potential locations, timing, and volumes of cool water input needed to reduce water temperatures to < 86 ºF. Other strategies will also be investigated. This work will culminate in the development of a Water Temperature Amelioration and Implementation Plan. Recommended measures would then be constructed/implemented. 8.3 Performance Criteria and Reporting Performance criteria are provided to ensure ongoing water temperature monitoring, and implementation of water temperature amelioration strategies continue in perpetuity (Table 8-2). At least one water temperature amelioration strategy will be implemented within two (2) years of completion of the Water Temperature Amelioration and Management Plan. This strategy will ameliorate water temperature to ≤ 86 ºF within an area of no less than 0.5 acres within the SAS- occupied portion of the Santa Ana River. If annual performance criteria are not met, the Project Sponsor will coordinate with the USFWS and CDFW to develop remedial measures, as appropriate. The specific approach to remedial measures will be determined by site conditions, progress toward attainment of performance criteria, and recommendations collaboratively developed by the Project Sponsor, the USFWS and CDFW. TABLE 8-2 WATER TEMPERATURE STUDY AND AMELIORATION PLAN PERFORMANCE CRITERIA Milestone Success Criteria Remedial Measures Year 1 Development of a preliminary water temperature heat map of Rialto Channel and the Santa Ana River Year 2 Completion of Water Temperature Amelioration and Implementation Plan Year 3 Water temperature reduced to ≤ 86 ºF within a minimum of 0.5 acres within SAS-occupied Santa Ana River. If the monitoring program determines appropriate temperature requirements are not being met following deployment of the amelioration measure, increased effort, or other strategies will be implemented. Year 4+ Maintain water temperature at ≤ 86 ºF within a minimum of 0.5 acres of SAS-occupied Santa Ana River in- perpetuity. Increase effort/implement additional measures. Reporting will consist of annual technical memorandums summarizing water temperatures in Rialto Channel and Santa Ana River for the 12-month reporting period, generated heatmaps, results of modeling, and results from implementation of water temperature amelioration strategies. An annual summary of monitoring activities will be incorporated into the HMMP annual monitoring report. Sterling Natural Resource Center Project 8-4 Santa Ana Sucker HMMP November 2023 8.4 In-perpetuity Monitoring and Management Water temperature monitoring within Rialto Channel and the Santa Ana River will continue in- perpetuity. The maintenance of water temperature to ≤ 86 ºF within a minimum of 0.5 acres of SAS-occupied Santa Ana River will also continue in-perpetuity. Once the water temperature amelioration has met the Year 3 performance criteria, as documented in the annual monitoring report and approved by the Project Sponsor, the USFWS and CDFW, monitoring and management associated with this conservation measure will continue in perpetuity. If the HCP is adopted prior to or during implementation of this HMMP, the monitoring and reporting associated with this measure will be carried forward into the HCP’s monitoring and reporting program. Sterling Natural Resource Center Project 9-1 Santa Ana Sucker HMMP November 2023 CHAPTER 9 Upper Watershed Santa Ana Sucker Population Establishment (CM 21.b.v., SAS- 6) The goal of this Conservation Measure is to increase the abundance, distribution, and resilience of Santa Ana sucker in the Santa Ana River Watershed by establishing redundant populations in upper watershed tributaries. The biological opinion identifies the establishment of two new locations of SAS within City Creek and Hemlock Creek, or other suitable watershed tributary, with at least one translocation occurring and data indicating that the nascent population is healthy, reproducing, and appears to be successfully establishing prior to diversion of flow. However, because of a number of constraints, translocation has not yet occurred. As required in the biological opinion, we have submitted a Supplemental BA with a revised Conservation Measure that will achieve the biological objectives analyzed in the opinion. The revised Conservation Measure proposes that translocation occur as soon as possible and identifies a financial security to provide assurances to the USFWS that the translocations will occur. Though not yet implemented, significant progress has been made in preparation of the translocations: the Santa Ana sucker Translocation Plan has been prepared and approved by the USFWS and CDFW, multiple translocation streams have been assessed to verify their suitability for receipt of Santa Ana sucker, and two fish raceways have been constructed at the Riverside- Corona Resource Conservation District’s Greenbelt Facility. Relevant permitting from the USFWS and/or CDFW (e.g., state scientific collection permit, MOU, etc.), as appropriate, will be secured prior to implementation of Upper Watershed Santa Ana Sucker Population Establishment. 9.1 Location, Timing, and Implementation Methods One of the four SAS recovery plan objectives involves expanding the range of the species by restoring habitat and reestablishing occurrences within its historical range (USFWS 2017). In addition to the recovery plan, the Upper Santa Ana River Habitat Conservation Plan (HCP) will be implementing the translocation of SAS into formerly occupied mountain tributaries of the Santa Ana River (Appendix D; Dudek 2022). A key goal of the SAS Recovery Plan is to expand the current range of the species through modification or removal of existing barriers, restoration of suitable habitat, and/or reintroduction of the species to areas within its historical range in a configuration that ensures reasonable certainty the remaining genetic makeup of the species has been preserved and can withstand catastrophic events in the watershed. Sterling Natural Resource Center Project 10-1 Santa Ana Sucker HMMP November 2023 This HMMP outlines the translocation and establishment of two populations of SAS within City Creek and Hemlock Creek, or other suitable unoccupied location within the historic range of the species within the Santa Ana River watershed as approved by the USFWS and CDFW. City Creek is expected to be the first tributary to receive translocated SAS. Goals and success criteria of the establishment plan are identified below, along with the amount of financial assistance to be provided by EVWD to contribute towards a regionally beneficial SAS population translocation and establishment program. 9.1.1 Native Fish Raceway Facility The RCRCD Native Fish Stream and Raceway Facility provides recovery and research opportunities for Inland Empire native fish populations and supports restoration and recovery projects in local streams (Dudek 2022). Three native fish species are being studied at the facility: Santa Ana speckled dace (Rhinichthys osculus ssp.), arroyo chub (Gila orcutti), and Santa Ana sucker (Dudek 2022). A second facility has also been constructed, the Greenbelt Off-site Aquatic Facility (Greenbelt Facility), to help facilitate, augment, and sustain the continued survival and recovery of SAS (Dudek 2022). The Greenbelt Facility is proposed to be used as a SAS headstart / “grow out” facility: young-of-year will be captured from the Santa Ana River, transferred to the Greenbelt Facility, and temporarily held for no more than 24 months (i.e., no more than one spawning season) prior to translocation to proposed mountain tributary receiver site(s). The Greenbelt Facility currently has two 300-foot, 30,000-gallon raceways, a chilled 1,500-gallon emergency unit, and two sources of water from both city supply and groundwater well sources (Dudek 2022). The site has the capacity to accommodate four additional raceways (six in total). The Facility is protected by perimeter fencing, cross fencing of the runs, and security cameras. Back-up generator units have been installed to maintain pump function. Back-up generator units will operate on propane so power outages, natural disasters, or equipment failure can be ameliorated through mechanical offset. The units are tested monthly to ensure proper operation. Back-up fish units will also be used to hold fish if there is ever a failure or equipment issue. 9.1.3 Source of Santa Ana Sucker for Relocation SAS should be sourced from multiple areas along the mainstem river to maximize genetic diversity of the receiver population. Details regarding the source and capture methods of SAS broodstock for the translocation program are provided in Dudek (2022; Appendix D). 9.1.4 Translocation Site Background and Description A single CNDDB record of Santa Ana sucker occurs in City Creek from 1982. It was recorded approximately 0.5 mile upstream of the Forest Service Road 1N22 crossing by Hoover F. Currently there is a large rock pool on the West Fork of City Creek at this approximate location. Site investigations conducted based on the Santa Ana Sucker Translocation Plan Phase 1 evaluation and Phase 2 field assessments for City Creek indicate that suitable habitat for SAS is present within the evaluated stream reaches and likely throughout much of the City Creek drainage. Based on the results of the spring and fall biological assessments, suitable habitat for spawning, larval and juvenile rearing, adult holding, and refugia are all present (to varying Sterling Natural Resource Center Project 9-3 Santa Ana Sucker HMMP November 2023 degrees) within the evaluated reaches. The hydrology of City Creek is sufficient to support all SAS life stages. The presence of Santa Ana speckled dace within City Creek attests to the maintenance of sufficient hydrology for native fish. Water quality parameters in the spring and fall were within the range of values documented in streams occupied by SAS, with the exception of lower pH values, typical of Santa Ana River tributary streams. Based on a comparison of food resources utilized by SAS and documented in Big Tujunga Creek, suitable food resources (primarily diatoms) are present and abundant in both the spring and fall in City Creek. Additionally, autecological information on the four most abundant algal species (83% of the community) in the spring and fall Surface Water Ambient Monitoring Program (SWAMP) samples indicates that all of these diatoms are sensitive to nutrient and organic enrichment and are less tolerant of pollution and degraded conditions. Benthic Macroinvertebrates (BMI) community data also indicates good stream conditions, especially the large percentage of Ephemeroptera, Plecoptera and Trichoptera taxa (49.7% in the spring and 23.0% in the fall), which are associated with good water quality and habitat conditions. Based on site assessment performed at City Creek, this tributary appears to contain relatively high -quality stream habitat capable of supporting a translocated population of SAS. Additionally, the presence of speckled dace (which have similar habitat requirements) at the SWAMP and supplemental reach stations also indicates appropriate habitat conditions for SAS. Finally, historical flow data indicates that outflows during the late summer and fall in most years (although very low) is likely sufficient to maintain water quality and suitable habitat to support the species. 9.1.5 Capture, Hold, and Release Strategy Santa Ana sucker will be collected from the Santa Ana River and transferred to native fish raceways at the Greenbelt Facility or translocated directly to receiver sites. Capture will focus primarily on young-of-year, however other age classes may also be collected. Number of individuals captured and transferred to the Greenbelt Facility will be consistent with approved permits issued by the USFWS and CDFW. Fish will be held at the Greenbelt Facility for no more than 24 months (no more than one spawning season) prior to translocation to mountain tributary receiver sites. The entire cohort within each raceway will be translocated. Release strategy methods for translocated SAS are briefly described below. Full details on the release strategy are provided in the Santa Ana Sucker Translocation Plan (Dudek 2022; Appendix D). Depending on the temporary holding time, and age classes of fish captured from the Santa Ana River, it is likely that each translocated cohort will consist of multiple age classes. Total number of individuals translocated will be dependent on multiple factors, including temporary hold duration at the Greenbelt Facility, and reproductive rate and survival while in captivity. Both breeding age adults (1+ years old) and young-of-the-year (YOY) SAS will be released together. Cohorts to be released together will be raised in the same raceway. YOY fish will make up a majority of the translocation population (up to 80%) due to the high fecundity of the species. The number of fish needed to establish and sustain a new population will vary based on location, stream outflow, water velocity, food sources, and substrate composition, but we are assuming at Sterling Natural Resource Center Project 10-1 Santa Ana Sucker HMMP November 2023 least 400 fish will constitute the size of the founding population. Serial translocations will be used to enhance population genetics. The timing of fish release will be based on the number and size of fish to be released, and streamflow (e.g., too little or too much flow will delay fish release). In general, translocations will occur following the end of high-flow/flood events in winter and early spring, but preferably before the winter/spring spawning period. Depending on the timing of rainfall events, snowmelt runoff, and SAS spawning, this window could be very short in wet years or protracted in drier years. In existing low elevation populations spawning can begin in January and continue through July, depending on the rainfall year. At higher elevations, spawning usually occurs from March through May. In the event that fish cannot be released prior to the spawning period, fish should be released as soon as possible on the declining arm of the hydrograph in that specific watershed. A third release period will occur September through November dependent on weather conditions. Young-of-the-year SAS will be large enough by September to manage winter storms and runoff in upper tributary streams. The success of these release windows will be compared to determine if there is an optimal period. A proposed schedule for translocation is shown in Table 9-1. 9.1.6 Population Establishment Schedule TABLE 9-1 POPULATION ESTABLISHMENT SCHEDULE Monitoring Year Timing Year 1 Dependent on climate and site conditions. Preferred: February and March. Alternative: June- November (One or more serial translocations).1 Years 2+ Same as above. Additional translocations will be performed as needed based on results of Population Establishment Monitoring (Table 9-3). 1 Timing of release will be compared to determine if there is an optimal period for release. 9.2 Monitoring and Adaptive Management Below is a summary of monitoring and adaptive management plan for translocated SAS. Full details on post-translocation monitoring are provided in the Santa Ana Sucker Translocation Plan (Dudek 2022; Appendix D). Monitoring requirements were determined for multiple demographic elements to evaluate SAS translocation goals and objectives (Dudek 2022). Table 9-2 provides SAS monitoring elements, data required, and data collection methods, and Table 9-3 provides a monitoring schedule. See Dudek (2022; Appendix D) for monitoring details for each element. TABLE 9-2 POPULATION ESTABLISHMENT MONITORING OBJECTIVES AND METHODS1 Element Data Needed Method Reproduction and recruitment (larvae and juveniles) Abundance and age class/presence of YOY Snorkel survey/bank observation Fish condition Fish body shape observations or weight and length data Snorkel survey/bank observation or electrofishing sample Sterling Natural Resource Center Project 9-5 Santa Ana Sucker HMMP November 2023 Element Data Needed Method Relative abundance Catch per unit effort Snorkel survey or electrofishing2 Density Population estimate Snorkel survey or electrofishing2 Distribution Presence-absence data Snorkel survey or electrofishing2 Genetics Genetic variation Fin clip 1 Table modified from Table 1 in section 7.2 from Dudek (2022). Data needs and sampling methods are proposed and may change based upon sampling constraints. 2 Snorkeling will be the preferred methodology to reduce impacts on fish when handling is not needed. Electrofishing would be used when appropriate. TABLE 9-3 POPULATION ESTABLISHMENT MONITORING SCHEDULE Year Timing Year 1+ Semi-annual (late-spring and fall): fish, water quality, habitat surveys Every 5 years Same as above and genetic sampling Adaptive management, in the context of this translocation plan, is intended to facilitate decision making and resolving uncertainties associated with translocating SAS into currently unoccupied streams (Dudek 2022). The key to effective adaptive decision making is the identification of alternative hypotheses about resource dynamics for SAS when translocation objectives are not being met, assessment of these hypotheses with monitoring data, and then implementing new management actions at the translocation stream/reach. The goal of the adaptive management process is ultimately to improve management of translocated SAS populations and inform future translocation efforts. An adaptive management decision tree is provided in Figure 5 of Dudek (2022) that is designed to assist translocation project managers in determining an appropriate course of action when monitoring data suggests a translocation effort is not resulting in the expected outcome (i.e., no recruitment). Southern California streams within the historical range of SAS are flashy in nature and are subject to periodic severe flooding or high flow events, which can displace fish and alter habitat through substrate and vegetative scouring, channel rearrangement, and sediment deposition (Dudek 2022). Because SAS translocation sites are currently primarily isolated from downstream reaches, they may not support sufficient refugia to provide an opportunity for recolonization. As a result, emergency fish rescues (which are expected to be very rare) may need to be considered for translocated populations5. Fish rescue efforts would be dependent on climate and translocation site conditions. Climate and translocation site conditions will be monitored to determine if an emergency rescue effort is warranted. Rescue efforts will be coordinated with USFWS, CDFW, 5 For example, where fish are washed downstream of barriers or where they are washed into areas subject to emergency activities (e.g., areas requiring the movement of streambed/basin materials to restore facility function) and would likely expire if not relocated back upstream. Sterling Natural Resource Center Project 10-1 Santa Ana Sucker HMMP November 2023 and the land managers of the watershed. Fish rescues for streams typically involve netting and electrofishing of fish out of the stream and placement into transport vessels with suitable water quality. Prior to conducting a rescue, the release destination for rescued fish must be determined. Release locations could include other potential or current translocation streams within the same watershed as the RCRCD facilities, or currently occupied habitat in the watershed. 9.3 Performance Criteria and Reporting A successful translocation program will expand the range of the Santa Ana sucker by reestablishing occurrences within its historical range and preserving the genetic makeup of the species to withstand catastrophic events in the watershed (Dudek 2022). The SAS Recovery Plan calls for “persistent occurrences of healthy fish” with one delisting criteria of “stable or increasing population averaged over 15 years in multiple tributaries of the Santa Ana River, including City Creek (USFWS 2017). The Santa Ana Sucker Translocation Plan provides a set of objectives for individual translocations of SAS into Santa Ana River tributaries (See section 7.1.2. of Dudek 2022). Below in Table 9-4, the translocation objectives have been modified into success criteria for establishment of a SAS population in City Creek. If annual performance criteria are not met, the Project Sponsor and/or a qualified biologist will coordinate to determine if remedial measures are necessary. The specific approach to remedial measures will be determined by site conditions, progress toward attainment of performance criteria, and recommendations collaboratively developed by the biologist, Project Sponsor, the USFWS and CDFW. The biologist will prepare succinct memoranda after each monitoring visit for submittal to the maintenance contractor and Project Sponsor, and an annual report of activities which will be incorporated into the HMMP annual monitoring report. The annual report will include summaries of all fish surveys and habitat assessments. TABLE 9-4 POPULATION ESTABLISHMENT SUCCESS CRITERIA Milestone Success Criteria Remedial Measures Year 1 SAS present Distributed along >10% of the occupiable stream Additional translocation(s) of SAS Years 2-4 SAS present Distributed along >25% of the occupiable stream or 2 or more age classes present Body index similar to that of San Gabriel fish Occupiable habitat available for SAS beyond occupied range (species is able to expand range) Additional translocation(s) of SAS Examine threats to species success Same as above. Every 5 Years Same as above Genetic diversity is the same or contains greater diversity than founding population Same as above. As needed, conduct additional translocations to increase genetic diversity. Sterling Natural Resource Center Project 9-7 Santa Ana Sucker HMMP November 2023 9.3.1 Translocation Cost and Financial Assurances To provide assurances that the translocations will be implemented, and progress made towards achievement of success criteria, the Supplemental BA proposes the funding of a financial security to be held on deposit until the translocations are complete. The estimated cost to implement the translocations and five years of monitoring and management is identified in Appendix D. For the purposes of the cost estimate it was assumed that EVWD would fund a one-quarter-time position with CDFW for a period of five years. Appendix D also includes approximate costs for field equipment and vehicle use. EVWD will provide Consumer Price Index (CPI) adjustments/adjustments for changes in CDFW salaries, to the financial security on an annual basis to ensure that sufficient funding is secured should the security need to be drawn on by CDFW. EVWD will fully fund the financial security prior to diversion. 9.4 In-Perpetuity Monitoring and Management Monitoring associated with this conservation measure will continue for the duration of diversion (anticipated to be in perpetuity). If the HCP is adopted prior to or during implementation of this HMMP, the monitoring and reporting associated with this measure will be carried forward into the HCP’s monitoring and reporting program. The estimated costs associated with implementation of a regional population establishment program are identified in Appendix D. Many of the costs associated with this breakdown will be assumed by the Upper SAR HCP once finalized; consequently, the estimate represents the maximum. EVWD’s maximum contribution to the regional population establishment program is estimated at $360,509. Sterling Natural Resource Center Project 10-1 Santa Ana Sucker HMMP November 2023 CHAPTER 10 Annual Monitoring of Santa Ana River (CM 21.b.vi., SAS-7) The goal of this measure is to report on the hydrological and biological conditions and activities completed under this HMMP. 10.1 Location, Timing and Monitoring Methods This measure will provide reporting on all of the long-term monitoring and management activities completed under this HMMP. The annual reporting will include a summary of all activities completed over the previous 12 months. The report will summarize all activities implemented, methodology employed, timing of implementation, success/failure of monitoring/management actions, and recommendations for adjustments to future monitoring/management actions. 10.2 Analysis and Reporting The HMMP annual monitoring report will provide an annual summary of hydrologic monitoring methods, a comprehensive analysis of collected data, a review of progress of attainment of the performance criteria, and any recommended remedial measures needed to achieve performance criteria. The report will also include representative photographs. 10.3 In-Perpetuity Monitoring and Management Monitoring and management presented in this HMMP will occur in-perpetuity. If the HCP is adopted prior to or during implementation of this HMMP, the monitoring and reporting associated with this measure will be carried forward into the HCP’s monitoring and reporting program. Sterling Natural Resource Center Project 12-1 Santa Ana Sucker HMMP November 2023 CHAPTER 12 Summary of Reporting and Agency Coordination 12.1 Compilation of Reporting for All Measures EVWD will be responsible for implementation and report compilation of the requirements contained in this HMMP. 12.2 Resource Agency Coordination 12.2.1 Reporting An annual progress report, as described in Chapter 10 will be prepared by the Project Sponsor or qualified contractors and submitted to USFWS and CDFW. The annual report will summarize the monitoring program and data collected for that calendar year, update prior reports in a cumulative fashion, and include raw data as well as data analysis and comparison with compliance and performance criteria, as applicable. The annual report will describe operations, GIS maps of sampling locations, data for each monitoring action, habitat conditions and environmental data during monitoring, and any recommendations for improvement of monitoring methods or actions. Monitoring results that prompt consideration of immediate adaptive management or maintenance actions will be communicated in a timely manner, in advance of annual report preparation. 12.2.2 Review and Feedback Monitoring results will be reviewed by the Project Sponsor, USFWS, CDFW and SAS experts to determine whether project objectives and/or success criteria are being met. If project objectives and/or success criteria are not being met, possible actions may include: more detailed diagnostic monitoring; corrective actions if known, necessary and feasible; adjustment of short-term operations or long-term management plans; and/or further study if necessary to reduce uncertainties. 12.3 In-Perpetuity Monitoring and Management Monitoring, adaptive management and reporting requirements identified in this HMMP will continue in perpetuity. If the HCP is adopted prior to or during implementation of this HMMP, the requirements outlined in this document will be carried forward into the HCP’s monitoring and reporting program. Sterling Natural Resource Center Project 13-1 Santa Ana Sucker HMMP November 2023 CHAPTER 13 References Bossard, Carla., John M. Randall, and Marc C. Hoshovsky. 2000. Invasive Plants of California Wildlands. University of California Press, Berkeley, California. California Invasive Plant Council (Cal-IPC). 2006. Exotic Invasive Species of Greatest Ecological Concern. Dudek. 2022. Santa Ana Sucker Translocation Plan. Dudek Environmental. Environmental Science Associates (ESA). 2016. Sterling Natural Resource Center Biological Assessment. June. ICF International (ICF). 2023. Upper Santa Ana River Watershed Nonnative Aquatic Species Control Program. June. U.S. Fish and Wildlife Service (USFWS). 2010. Endangered and Threatened Wildlife and Plants; Revised Critical Habitat for Santa Ana Sucker; Final Rule. 50 CFR Part 17 [Docket No. FWS-R8-ES-2009-0072; 92210-1117-0000-B4]. U.S. Fish and Wildlife Service (USFWS). 2017. Recovery Plan for the Santa Ana Sucker. U.S. Fish and Wildlife Service, Pacific Southwest Region, Sacramento, California. U.S. Geological Survey (USGS). 2023. Native Fish Population and Habitat Studies, Santa Ana River, California: U.S. Geological Survey data release collection, https://doi.org/10.5066/P9W7SV9M. July. Williams, B.K., R.C. Szaro, and C.D. Shapiro. 2009. Adaptive management: The U.S. Department of the Interior technical guide. Adaptive Management Working Group, U.S. Department of the Interior, Washington, DC. Sterling Natural Resource Center Project Santa Ana Sucker HMMP November 2023 APPENDIX A FILES Habitat Parameters for Various Life History Stages of Santa Ana Sucker ‒ Sterling Natural Resources Center Permitting for Microhabitat Enhancement along the Santa Ana River Annual Report: Santa Ana River Stream Habitat Improvement Pilot Project (SBVMWD 2022) Sterling Natural Resource Center Project Santa Ana Sucker HMMP November 2023 APPENDIX B Nonnative Aquatic Predator Control Plan (ICF 2023) Sterling Natural Resource Center Project Santa Ana Sucker HMMP November 2023 APPENDIX C Exotic Weed Management Plan (IERCD 2023) Sterling Natural Resource Center Project Santa Ana Sucker HMMP November 2023 APPENDIX D Rialto Channel/Santa Ana River Water Temperature Amelioration Project Cost Estimate Sterling Natural Resource Center Project Santa Ana Sucker HMMP November 2023 APPENDIX E FILES Santa Ana Sucker Translocation Plan (Dudek 2022) EVWD Translocation Financial Security Santa Ana Sucker Regional Population Establishment Program Endowment Estimate Quantity Item Description Unit Price (xxx.xx) Total Subtotal Tax S/H or other Total Purchase Request/Purchase Order Vendor Contact Name Phone Number Quote Amount PRODUCTS/SERVICES VENDOR INFORMATION: Proposed Vendor ____________________________________ New Vendor (If new, fill out vendor info below) Address _______________________________________________________________________________________ City _____________________________________________________ ST __________ Zip _____________________ Contact name: _______________________________________ Tel: ________________ FAX: _________________ Product/Service Quotes PURPOSE/JUSTIFICATION OF NEED Budget Expense Category: Amount: Date: ______________________ Requested By: ________________________________________________ Project Description: ___________________________________________ Project #: __________________ Date Needed By: __________________ Check needed P.O. number needed PO #: ______________________ SH I P T O Address ____________________________________ City ____________________ ST ____ Zip _________ Contact: ___________________________ Address ____________________________________ City ____________________ ST ____ Zip _________ Contact: ___________________________ San Bernardino Valley Municipal Water District 380 East Vanderbilt Way San Bernardino, CA 92408 Ph: (909) 387-9211 Fax: (909) 387-9247 BI L L T O _________________________________ Requested by Date The undersigned certifies that the purchases requested/ordered herein are for supplies, services or items authorized for approved District activities. _____________________________ General Manager Date Approved: Joanna Gibson 08/26/24 Upper SAR HCP: Santa Ana River actions 1770 20240826-JG-01 380 East Vanderbilt Way San Bernardino CA 92408 380 East Vanderbilt Way San Bernardino CA 92408 invoices@sbvmwd.com 1.00 Sampling Water Sampling and Loggers $5,500.00 $5,500.00 1.00 Section 6 Grant Section 6 grant tasks $3,500.00 $3,500.00 1.00 Anza Creek Monitoring at Anza Creek during construction $3,500.00 $3,500.00 1.00 Surveys Annual Santa Ana River native fish surveys $23,353.00 $23,353.00 1.00 Admin fee Administrative fees $7,170.00 $7,170.00 $43,023.00 0.00%$0.00 $43,023.00$0.00 RCRCD Funds for this expenditure are included in the approved 2023/2024 budget under RCRCD/SRMA Native Fishes Survey Permit/Staff/Equipment (ENVIRONMENTAL/PERMIT COMPLIANCE AND HCP IMPLEMENTATION) within Budget category item 6780. Tasks identified in this proposal are needed to support mitigation actions to facilitate construction of water infrastructure projects proposed under the Upper SAR HCP. Joanna Gibson Digitally signed by Joanna Gibson Date: 2024.08.26 09:25:25 -07'00' Heather Dyer, MS, MBA Digitally signed by Heather Dyer, MS, MBA Date: 2024.08.26 11:31:50 -07'00' The following information is being provided based upon past relocation, translocation and native fish population monitoring projects provided by the Riverside-Corona Resource Conservation District over the last 15 years in the Santa Ana River watershed and other areas of southern California. The information provided herein is an estimate of costs to conduct certain activities required by implementation of the HCP and 10j issuance and under certain permit requirements of RCRCD. Budgets reflect the differences in locations, staff and equipment to provide the most cost-effective program. Proposed Operational Budgets for the Upper SAR HCP Native Fish Monitoring Program provided by: Riverside-Corona Resource Conservation District July 2024 Proposed Tasks: 1. Water Sampling and Loggers on SAR 2. USGS Sec 6 Project 3. Anza Creek Restoration Monitoring 4. Annual USGS/RCRCD/SBVMWD Sucker Surveys Proposed Budgets: 1.Water Sampling and Loggers: 4-5x/yr., 3 persons/day = $ 5,500.00 (includes equipment, report, data collection, etc.). 2.USGS Sec 6 Project: 1-3 staff for project period = $ 3,500.00 (includes facilities, utilities, etc.) 3.Anza Creek Monitoring: Assist with monitoring restoration on CE and during de-watering (1 staff) $ 3,500.00 4.USGS/RCRCD/SBVMWD Annual Sucker Survey: $23,353.00 Provide staff, equipment and supplies for 3 weeks of surveys on SAR Admin for all Tasks: $ 7,170.00 _____________________________________________________________________________ Total for FY 24-25: $43,023.00 For additional information or details, please contact Kerwin Russell, Assistant District Manager at 951-683-7691, ext. 203 or russell@rcrcd.org The following information is being provided based upon past relocation, translocation and native fish population monitoring projects provided by the Southwest Resource Management Association over the last 10 years in the Santa Ana River watershed and other areas of southern California. The information provided herein is an estimate of costs to conduct certain activities required by implementation of the HCP and 10j issuance and under certain permit requirements of SRMA. Budgets reflect the differences in locations, staff and equipment to provide the most cost-effective program. Proposed Operational Budgets for the Upper SAR HCP Native Fish Monitoring Program provided by: Southwest Resource Management Association July 2024 Proposed Tasks: 1. SAS Translocation (when needed) 2. Non-Native Aquatic Species Removal (Rialto/RIX) Proposed Budgets: 1. SAS Translocation and Sucker Holding: 1x/yr., 5-6 persons/day and holding for up to 12mos = $10,500.00* (includes equipment, reports, fish handling, holding costs, etc.) 2. Non-native Aquatic Species Removal: 2x/yr., 5-6 staff = $ 6,000.00* (includes pump(s), fish handling equipment, supplies, etc.) Admin for Tasks: $ 3,300.00 _____________________________________________________________________________ Task Total for 24-25 FY: $19,800.00 *additional days/staff/equipment can be added as needed. For additional information or details, please contact Kerwin Russell, Field Supervisor at 909-553-4349 or krussell@srma-ca.org ATTACHMENT N SNRC Projected 2024 Costs Permit Measure Task Scope information Field work Field work Surveys Surveys Reporting Permits Water Quality Sampling Supplies (wooden stakes) Field work Comments SBVMWD Staff Volunteers SBVMWD Staff Volunteers SBVMWD Staff SBVMWD Staff Projected Costs (Scheevel) Projected Costs SBVMWD Staff Projected costs for 2024 SBVMWD Staff SBVMWD Staff SBVMWD Staff 1.4 miles of SAR SBVMWD Staff Projected costs for 2024 SBVMWD Staff Hours Cost 240Habitat Node construction Habitat Node construction (volunteers) Habitat Node monitoring/surveys Habitat Node monitoring/surveys (volunteers) Habitat Node reporting $- - - - - - 80 $ 160 $ 80 $ 40 $ 16 $ $ BO, 1602 SAS 21.a.i, MM 3.1 Habitat Node permits Habitat Node Water Quality Sampling Habitat Node construction Aquatic Predtaor Control 15,000 5,000$ 96 $ $ - BO, 1602 SAS 21.a.ii, MM 3.6.1 Aquatic Predtaor Control Aquatic Predtaor Control SRMA Scope 7,000 - - - Reporting Field work Reporting SAWA Scope Field work RCRCD Scope Reporting RCRCD 40 $ 40Exotic Weed Management Exotic Weed Management Exotic Weed Management Water Temperature Water Temperature Water Temperature $ 16 $ $BO, 1602 BO SAS 21.a.iii, MM 3.2 SAS 21.a.iv 146,419 16 $ $ - 6,417.00 16 $- BO, 1602 SAS.21.a.v, MM 3.6.2 Translocation (Greenbelt Facility) Costs Native Fish Surveys Projected Costs for 2024 $24,000 Organization andf scheduling SBVMWD Staff 40 $- Native Fish Surveys Field Work SBVMWD Staff 120 $- BO, 1602 SAS.21.a.vi, MM 2.6.1 Native Fish Surveys Native Fish Surveys Field work Volunteers 784 $- Field work (RCRCD) Field work (USGS) Treatment Plant coordiation Field work Field work Field work Reporting Reporting SAWA Scope Reporting 26% of RCRCD Scope 26% of USGS Scope SBVMWD Staff SBVMWD Staff Volunteers RCRCD Projected Costs for 2024 SBVMWD Staff SBVMWD Staff SAWA Scope, 9% of costs SBVMWD Staff $ $ 7,084 31,200Native Fish Surveys High Flow Pulse Events High Flow Pulse Events 8 $- - - 16 $ 48 $ $ CEQA 1602 ALL SAS 4 High Flow Pulse Events High Flow Pulse Events High Flow Pulse Events Riparian Bird Monitoring Riparian Bird Monitoring Annual Reporting ALL 4,667 - - 8 $ 16 $ $ $ MM 2.6.2 ALL 27,000 80 - - - - GIS Support SBVMWD Staff SBVMWD Staff SBVMWD ($500) SBVMWD ($2,000) 40 $ 40 $ $ ALL Data Analysis Vehicles and Mileage Field equipment ALL ALL $- TOTAL HOURS: 2040 $- TOTAL COSTS:$273,787 Agenda Item #4h November 13, 20241 1 2 4 5 Meeting Date: November 13, 2024 Agenda Item #4h Discussion Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Approval of a Design-Build Contract Amendment and Associated Support Services Contract Amendments for Additional Sewer Lateral Construction and an Additional Membrane Bio-Reactor Train at the Sterling Natural Resource Center RECOMMENDATION That the Board of Directors authorize the General Manager/CEO to: 1. Execute Amendment No. 13 and 14 to the design-build contract with Balfour Beatty for design-build services for additional sewer lateral construction and an additional Membrane Bio-Reactor (MBR) train (Train 5) for an amount not to exceed $8,847,599, plus a 10% contingency. 2. Execute an amendment to the materials testing and specialty inspection contract with Group Delta for additional services for MBR Train 5 for an amount not to exceed $83,403. 3. Execute an amendment to the program management services contract with AKD Consulting for additional services for MBR Train 5 for an amount not to exceed $360,000. 4. Execute an amendment to the permitting services contract with Rincon Consultants for additional services for MBR Train 5 for an amount not to exceed $10,000. BACKGROUND / ANALYSIS Balfour Beatty was contracted by the District is 2018 to construct the Sterling Natural Resource Center (SNRC) Project. The Project consisted of several components both on- site and off-site. The contract was amended 12 times over the past six years to accommodate District added scope and unforeseen items not included in the original contract. Two additional contract amendments are proposed to accommodate changes in scope of work to Balfour Beatty. In addition, support services will be required from the District’s consultants for the additional work. Off-site Gravity Sewer Lateral Relocations During the construction of the gravity sewer that conveys wastewater to the SNRC, it became evident that 13 existing sewer laterals in Base Line Road were not documented in the District’s record drawings and not provided to Balfour Beatty when contracting the project. Consequently, Balfour Beatty’s scope for the new gravity sewer did not include the construction of these 13 sewer laterals on the new gravity sewer to serve Agenda Item #4h November 13, 20242 1 2 4 5 Meeting Date: November 13, 2024 Agenda Item #4h Discussion Item existing District customers. The work was authorized by the District to be performed on a time and materials basis in order to expedite the sewer transitioning in early 2024. Actual costs have been verified and the resulting amount for the additional sewer lateral work is $639,763. The additional work is recommended as Amendment No. 13 of the original contract. MBR Train No. 5 On September 25, 2024, an informational item was presented to the Board that detailed some of the operational challenges that result from membrane filter fouling having a larger impact than anticipated on managing the flow of water through the SNRC. With the average flow of wastewater into the SNRC (6.3 million gallons per day (mgd)) being greater than the planned flow (6.0 mgd) and the membrane fouling being greater than expected, more frequent cleaning of the membranes is required. This increases the likelihood of having to store raw wastewater in the on-site storage basin, which is not desirable due to odors. In addition, recovering from abnormal events like power outages and occasional equipment failures is more difficult when membrane filter capacity is limited. The operational challenges described above can be overcome by adding a fifth MBR train. The MBR system was built with space for a fifth train. The Balfour Beatty design- build team is uniquely qualified to construct the additional MBR facility due to their knowledge of the SNRC. All work must be done without disrupting operations of the SNRC. District staff has negotiated a scope of work not to exceed $8,207,836 and recommends Amendment No. 14 to the original contract. Support Contracts To support the MBR Train 5 effort, it is also recommended to authorize an amendment with Group Delta for testing and inspection services for $83,403, an amendment with AKD Consulting for program management services for $360,000, and an amendment with Rincon Consultants for permitting services for $10,000. The support services are needed to provide soil compaction, material testing, and inspection services during construction. Program management services are needed to support District staff in coordinating the design engineering, construction, start-up, and administration activities. Also, permitting services are needed to coordinate and develop updates to various reports and documents required by the water quality regulations. The additional work for MBR Train No. 5 will include procurement of long-lead items in addition to significant construction inside the SNRC plant. If authorized, the work will begin in January 2025 and be completed in late 2026. SNRC operators will be adjusting their normal operation during construction to ensure plant operations and maintenance are not negatively impacted. Agenda Item #4h November 13, 20243 1 2 4 5 Meeting Date: November 13, 2024 Agenda Item #4h Discussion Item AGENCY GOALS AND OBJECTIVES IV - Promote Planning, Maintenance and Preservation of District Resources A. Develop Projects and Programs to Ensure Safe and Reliable Services REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT The proposed contract amendments total $9,301,002, plus a 10% construction contingency for the Balfour Beatty Amendment No. 14. The contract amendments are not budgeted and will be added to the mid-year budget accordingly. Funding for the additional work will come from a combination of Reclamation Fund capacity fee reserves and revenue from previous grants to be received in 2025. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Jeff Noelte Director of Engineering and Operations ATTACHMENTS Exhibit A – Additional Sewer Lateral documentation Exhibit B – MBR Train 5 design-build proposal Exhibit C – MBR Train 5 testing and inspection proposal Exhibit D – MBR Train 5 program management proposal Exhibit E – MBR Train 5 permitting services proposal