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HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 04/08/2025FINANCE & HUMAN RESOURCES COMMITTEE APRIL 8, 2025 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. COMMITTEE MEMBERS David E. Smith Governing Board Member Ronald L. Coats Governing Board Member Finance & Human Resources Committee Meeting April 08, 2025 ­ 1:30 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalleywater.gov PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. 1.Approve the February 11, 2025 Finance & Human Resources Committee Meeting Minutes INFORMATIONAL ITEMS 2.Update on District Compliance with New Legal Obligations Under AB 2561 Requiring Public Agencies to Present Annual Update on Vacancies and Recruitment and Retention Efforts. 3.Fiscal Year 2025­26 Proposed Capital Improvement Program Budget DISCUSSION ITEMS 4.Set the day and time for holding recurring meetings REPORTS 5.Finance Activities 6.Human Resource Activities ADJOURN FINANCE & HUMAN RESOURCES COMMITTEEAPRIL 8, 2025East 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.COMMITTEE MEMBERS David E. Smith Governing Board Member Ronald L. Coats Governing Board Member Finance & Human Resources Committee Meeting April 08, 2025 ­ 1:30 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalleywater.gov PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. 1.Approve the February 11, 2025 Finance & Human Resources Committee Meeting Minutes INFORMATIONAL ITEMS 2.Update on District Compliance with New Legal Obligations Under AB 2561 Requiring Public Agencies to Present Annual Update on Vacancies and Recruitment and Retention Efforts. 3.Fiscal Year 2025­26 Proposed Capital Improvement Program Budget DISCUSSION ITEMS 4.Set the day and time for holding recurring meetings REPORTS 5.Finance Activities 6.Human Resource Activities ADJOURN FINANCE & HUMAN RESOURCES COMMITTEEAPRIL 8, 2025East 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.COMMITTEE MEMBERSDavid E. SmithGoverning Board Member Ronald L. CoatsGoverning Board MemberFinance & Human Resources Committee MeetingApril 08, 2025 ­ 1:30 PM31111 Greenspot Road, Highland, CA 92346www.eastvalleywater.govPLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. 1.Approve the February 11, 2025 Finance & Human Resources Committee Meeting Minutes INFORMATIONAL ITEMS 2.Update on District Compliance with New Legal Obligations Under AB 2561 Requiring Public Agencies to Present Annual Update on Vacancies and Recruitment and Retention Efforts. 3.Fiscal Year 2025­26 Proposed Capital Improvement Program Budget DISCUSSION ITEMS 4.Set the day and time for holding recurring meetings REPORTS 5.Finance Activities 6.Human Resource Activities ADJOURN Agenda Item #1 April 8, 20251 Meeting Date: April 8, 2025 Agenda Item #1 Consent Item 1 4 8 7 Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Approve the February 11, 2025 Finance & Human Resources Committee Meeting Minutes RECOMMENDATION That the Finance & Human Resources Committee approve the February 11, 2025 meeting minutes. DISTRICT PILLARS AND STRATEGIES V - Community Engagement, Advocacy, and Leadership a. Utilize Effective Communication Methods to Foster Exceptional Community Relations FISCAL IMPACT There is no fiscal impact associated with this agenda item. Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS February 11, 2025 Minutes Page 1 of 2 2 1 5 1 Draft pending approval EAST VALLEY WATER DISTRICT February 11, 2025 FINANCE & HUMAN RESOURCES COMMITTEE MEETING MINUTES PUBLIC COMMENTS APPROVAL OF CONSENT CALENDAR 2025 EMPLOYMENT LAW UPDATES Page 2 of 2 2 1 5 1 REVIEW UNFUNDED ACCRUED LIABILITY PENSION MANAGEMENT POLICY 7.8 The Chief Financial Officer gave a presentation on the District’s Pension Liability Management. He discussed the District’s history with CalPERS and strategies used to help reduce Unfunded Accrued Liability (UAL). He also stated that during each budget cycle, staff will present all pension management recommendations to the Board, as written in Policy 7.8. Information only, no action required. The Chief Financial Officer gave a brief presentation of revenues; presented by Fund (Water, Wastewater, and Reclamation). He stated although there was an increase in revenue from the Water Fund and decrease from the Reclamation Fund, the mid-year budget review will propose a net increase to projected revenue of $212K. Information only, no action required. The Chief Financial Officer reported that the District received final reimbursement of $11M from the State Water Resources Control Board for the SNRC project. He also congratulated Mark Hokanson on his promotion from Accountant to Senior Accountant. The General Manager/CEO gave updates on recruitment and retirement. The meeting adjourned at 2:20 p.m. Ronald L. Coats David E. Smith Governing Board Member Governing Board Member Agenda Item #2 April 8, 20251 Meeting Date: April 8, 2025 Agenda Item #2 Informational Item 1 3 7 5 Regular Meeting TO: Committee Members FROM: General Manager/CEO SUBJECT: Update on District Compliance with New Legal Obligations Under AB 2561 Requiring Public Agencies to Present Annual Update on Vacancies and Recruitment and Retention Efforts. RECOMMENDATION This agenda item is for informational purposes only, no action is required. BACKGROUND / ANALYSIS Executive Summary: AB 2561 requires public agencies, including East Valley Water District to hold at least one (1) public hearing per fiscal year to discuss employment vacancies and recruitment and retention efforts. This report discusses the District’s legal obligations under the new law, which took effect January 1, 2025, and the District’s plan for compliance. AB 2561 was introduced to address the issue of job vacancies in local government, which adversely affects the delivery of public services and employee workload. Among other requirements, the bill mandates that public agencies present the status of vacancies and recruitment and retention efforts during a public hearing before the agency’s governing body at least once per fiscal year. In compliance with the new legal obligations, the District is required to do the following: 1. Public Hearing: At least once each fiscal year, at a public hearing before the Board of Directors, the District shall present information regarding the status of vacancies and recruitment and retention efforts and identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. This public hearing before the Board of Directors has been scheduled for May 14, 2025. Staff will present the status of vacancies and the District’s creative recruitment and retention efforts that have proved successful in filling vacancies quickly and keeping the District’s non-retirement turnover very low. 2. Employee Organization Participation: Allow the recognized employee organization for each bargaining unit at the District to make presentations during the public hearing concerning vacancies and recruitment and retention efforts. Agenda Item #2 April 8, 20252 Meeting Date: April 8, 2025 Agenda Item #2 Informational Item 1 3 7 5 The East Valley Water District Employee Partnership (EVWDEP) is the recognized employee organization for represented employees of the District. Staff will inform the EVWDEP representatives of the public hearing and their rights to present during the hearing at least 4 weeks prior to the hearing. 3. Additional Reporting for High Vacancy Rates: If vacancies within a single bargaining unit meet or exceed 20% of authorized full-time positions in that bargaining unit, upon request of the recognized employee organization for that bargaining unit, the District must provide additional information during the public hearing, including the following: (1) the total number of vacancies; (2) the number of applicants; (3) the average time to fill positions; and (4) opportunities to improve compensation and working conditions for employees in the bargaining unit. The District’s vacancy rate falls well below 20%. Our current vacancy rate is 2.2%, therefore, the District does not have to comply with the additional reporting requirements. To gain a thorough understanding of AB 2561, and to ensure compliance with the public hearing requirements, staff attended the Liebert Cassidy Whitmore Employment Law Firm’s training on complying with AB 2561. Staff will continue to monitor the District’s employment vacancy rate and provide a public hearing each spring. DISTRICT PILLARS AND STRATEGIES III - Organizational Resiliency b. Promote a Positive Organizational Culture FISCAL IMPACT This item is for informational purposes and there is no fiscal impact. Respectfully submitted: ________________ Kerrie Bryan Director of Administrative Services ATTACHMENTS No Attachments Agenda Item #3 April 8, 20251 Meeting Date: April 8, 2025 Agenda Item #3 Informational Item 2 1 6 5 Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Fiscal Year 2025-26 Proposed Capital Improvement Program Budget RECOMMENDATION This agenda item is for informational purposes only, no action is required. BACKGROUND / ANALYSIS The District presents an annual budget to the Board in June each year. An important component of the budget is the investment in Capital Improvement Projects for the three Funds 1) Water 2) Wastewater Collection and 3) Water Reclamation. Capital improvements are projects that replace assets that may have reached the end of their useful life or projects that enhance asset capacity or reliability. In May 2024, the Board authorized a rate adjustment that increased the District’s investment into aging assets such as reservoirs, groundwater wells and pipelines. The Capital Budget is planned to increase over the next couple of budget years. As part of the budget planning process, staff meet to review planning documents and operational needs. The General Manager/CEO and program managers held two meetings in March 2025 to discuss and prioritize capital expenditures for the 2025-26 Fiscal Year. The purpose of this discussion is to provide the Committee a preliminary review of the proposed Capital Improvement Program that will be included as a new project, or continuation of an existing project. These projects may change as the District refines the budget that will be presented in June 2025. DISTRICT PILLARS AND STRATEGIES II - Sustainability, Transparency, and Accountability a. Uphold Transparent and Accountable Fiscal and Resource Management FISCAL IMPACT This item is for informational purposes. There is no fiscal impact associated with this agenda item. Agenda Item #3 April 8, 20252 Meeting Date: April 8, 2025 Agenda Item #3 Informational Item 2 1 6 5 Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS Presentation-CIP Budget FY 2025-26 FY 2025-26 Brian Tompkins, Chief Financial Officer April 8, 2025 Capital Improvement Program Budget METER REPLACEMENT PROGRAM Purpose: Replace Meters as Required to Maintain Read Accuracy Period: Jul 2025 –Jun 2026 Proposed Budget: $200K Total Cost: $200K Funding Source(s): •Annual Operating Revenue 2 PLANT 134 MEMBRANE REPLACEMENT Purpose: Replace Trains of Membrane Cartridges to Maintain Filtration Effectiveness Period: Jul 2025 – Jun 2030 Proposed Budget: $350K Total Cost: $1.75M Funding Source(s): •Annual Operating Revenue 3 PLANT 140 REHABILITATION Purpose: Extend Useful Life of 2 MG Tank in District Canal Pressure Zone Period: Jul 2025 – Jun 2026 Proposed Budget: $1.5M Total Cost: $1.5M Funding Source(s): •Annual Operating Revenue 4 PLANT 134 PRETREATMENT FEASIBILITY STUDY Purpose: Identify Improvements for Pre-Treating Dirty Water from SAR Period: Jul 2025 – Jun 2026 Proposed Budget: $100K Total Cost: $100K Funding Source(s): •Annual Operating Revenue 5 PLANT 129 WELL DESIGN & CONSTRUCTION Purpose: Increase District groundwater production capacity Period: Jul 2024 – Dec 2026 Proposed Budget: $3M Total Cost: $5M Funding Source(s): •Water Capacity Fees 6 WELL 152 DESIGN & CONSTRUCTION Purpose: Increase District Groundwater Production Capacity Period: Jul 2025 – Dec 2027 Proposed Budget: $450K Total Cost: $5M Funding Source(s): •Annual Operating Revenue •Grants (Potential Design) 7 WATER MAIN REPLACEMENTS – SEISMIC RETROFIT (DWIGHT / STERLING) Purpose: Reduce Failure Risk, Increase Resiliency of Water Distribution System Period: Jul 2025 – Jun 2028 Proposed Budget: $7M Total Cost: $17M Funding Source(s): •FEMA Hazard Mitigation Grant Program (75%) •Annual Operating Revenue (25%) 8 WATER MAIN REPLACEMENTS – SEISMIC RETROFIT DESIGN (MARSHALL / MOUNTAIN) Purpose: Reduce Failure Risk, Increase Resiliency of Water Distribution System Period: Jul 2025 – Jun 2026 Proposed Budget: $662.85K Total Cost: $662.85K Funding Source(s): •FEMA Hazard Mitigation Grant Program (75%) •Annual Operating Revenue (25%) 9 WATER MAIN REPLACEMENTS (CUL-DE-SACS W/UNDERSIZED WATER MAINS) Purpose: Improve Fire Protection to Underserved neighborhoods Period: Jul 2025 – Jun 2026 Proposed Budget: Up to $1.725M Total Cost: $4M Funding Sources: •Annual Operating Revenue •Replacement Reserves 10 FACILITY RELOCATIONS Purpose: Move District Facilities in Alignment of other Agency Projects Period: Perennial Proposed Budget: $100K Total Cost: $100K Funding Source(s): •Annual Operating Revenue 11 FACILITY REHABILITATIONS Purpose: Increase Useful Lives of Facilities Period: Perennial Proposed Budget: $125K Total Cost: $125K Funding Source(s): •Annual Operating Revenue 12 PLANT 39 WAREHOUSE BUILDING Purpose: Increase Inventory Storage Period: Jul 2024 – Dec 2025 Proposed Budget: $100K Total Cost: $380K Funding Source(s): •Operating Revenue 13 MBR TRAIN 5 AT SNRC Purpose: Increase Treatment Capacity Period: Jan 2024 – Jun 2026 Proposed Budget: $6.14M Total Cost: $10.23M Funding Source(s): •Capacity Fees •Greening Grant Reimbursement •Self Generation Incentive Program (SGIP) 14 QUESTIONS? Agenda Item #4 April 8, 20251 Meeting Date: April 8, 2025 Agenda Item #4 Discussion Item 1 4 9 5 Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Set the day and time for holding recurring meetings RECOMMENDATION That the Finance & Human Resources Committee set the day and time for holding recurring meetings. DISTRICT PILLARS AND STRATEGIES V - Community Engagement, Advocacy, and Leadership a. Utilize Effective Communication Methods to Foster Exceptional Community Relations FISCAL IMPACT There is no fiscal impact associated with this agenda item. Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS No Attachments