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Agenda Packet - EVWD Board of Directors - 01/22/2001
i East Valley Water District 1155 DEL ROSA AVENUE, SAN BERNARDINO, CA REGULAR BOARD MEETING January 22, 2001 5:30 P.M. AGENDA In order to comply with legal requirements for posting of agenda, only those items filed with the District Secretary by 10:00 a.m. on Tuesday prior to the following Monday meetincy not requiring departmental investigation, will be considered by the Board of Directors". CALL TO ORDER PLEDGE OF ALLEGIANCE 1.Approval of Agenda 2.Public Comments CONSENT CALENDAR 3.Approval of January 8, 2001 Board Meeting Minutes. 4.Approval of Liens for Delinquent Water and Sewer Accounts. 5.General Fund Disbursements 4183538 through 4183726 in the amount of$792,148.22 and Payroll Checks 98338 through 98390 in the amount of$58,324.90, totaling $850,473.12. OLD BUSINESS 6.Radon Rule Update. (General Manager) NEW BUSINESS 7.Setting date, time and place for a Public Hearing to discuss the possible changes to the District's water and sewer rate structure. 8.Discussion and possible action regarding scheduling a tour of District facilities in April. (General Manager) 9.Approval of audit services from Rogers, Anderson, Malody & Scott (RAMS) for the year ending June 30, 2001. Discussion and possible action. REPORTS 10. January 9, 2001 —Releases of Lien for Delinquent Water and Sewer Accounts, 11, Excess Investment Earnings for the Period: May 14, 1996 to November 30, 2000. 12. General Manager's Report 13. Oral Comments from Board of Directors. MEETINGS 14. ACWA's 2001 ISSUE BRIEFING, FEBRUARY 9, 2001, MONTEREY MARRIOTT HOTEL 15. ACWA LEGISLATIVE SYMPOSIUM, MARCH 20 & 21, 2001, HOLIDAY INN CAPITOL PLAZA, SACRAMENTO, CA. CLOSED SESSION 16. CONFERENCE WITH REAL PROPERTY NEGOTIATOR Government Code Section 54956.8] Property:7920 Webster Street 7820 Webster Street Party with whom District will negotiate: Charbonneau Family Trust Bobby J. Haney Party who will be negotiating on behalf of the District: Jim Cimino Under Negotiation: Price and Terms of Payment 17. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(c): One Potential Case ANNOUNCEMENT OF CLOSED SESSION ACTIONS ADJOURN 2 L DRAFT SUBJECT TO APPROVAL EAST VALLEY WATER DISTRICT REGULAR BOARD MEETING JANUARY 8, 2001 MINUTES The meeting was called to order at 5:34 p.m. by President Lightfoot. Director Negrete led the flag salute. PRESENT: Directors Wilson, Sturgeon, Negrete, Goodin, Lightfoot ABSENT: None STAFF: Robert Martin, General Manager; Paul Dolter, District Engineer; Alberta Hess, Chief Financial Officer; Mary Wallace, Administrative Assistant. LEGAL COUNSEL: Steve Kennedy GUEST(s): Jo McAndrews APPROVAL OF AGENDA M/S/C (Wilson-Negrete) that the January 8, 2001 Agenda be approved as submitted. PUBLIC PARTICIPATION President Lightfoot declared the public participation section of the meeting open at 5:35 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF DECEMBER 26, 2000 BOARD MEETING MINUTES. The General Manager noted that the meeting of December 26, 2000 was 'cha'red" by Vice President Goodin and, therefore, the Public Participation Section of that meeting was opened by Vice President Goodin, not President Lightfoot. Director Negrete Noted that the "Flag Salute" was led by Director Negrete, not Director Wilson. M/SIC (Goodin-Wilson) that the December 26, 2000 Board Meeting Minutes be approved with corrections as noted. APPROVAL OF LIENS FOR DELINQUENT WATER AND SEWER ACCOUNTS. The General Manager noted that the owner of property at 7724 Palm Ave,, had paid the account and should be removed from the lien list. M/S/C (Goodin-Wilson) that the liens for delinquent water and sewer accounts be approved for processing with the exception as noted by the General Manager. DISBURSEMENTS M/S/C (Goodin-Wilson) that General Fund Disbursements #183445 through #183537 in the amount of $108,943.27, Payroll Fund Disbursements #8280 through #8237 in the amount of $67,415.08, totaling $176,358.35 be approved. RADON RULE UPDATE The General Manager reported on the District's progress with the Rule to date; that Congress was back in session; that there was no word as to whether EPA would publish the "rule" before the 20th; that a trip to D.C. Feb.3-7, 2001 should be considered. Information only. ASSISTANCE AGREEMENT BETWEEN EVVVD AND USEPA, The General Manager gave an update of the "on-site" visit and review by EPA on May 11-12, 2000 regarding the District's "Perchlorate Research Grant". Information only. STATUS OF "PATTON STATION" PROJECT (GOLF COURSE AND RELATED FACILITIES). A letter from Nooregian & Associates requesting an extension of time to submit flood control plans and commence work on the golf course was presented for discussion. Legal counsel will follow up on setting a meeting with the State regarding these matters. Information only. DIRECTOR'S FEES AND EXPENSES FOR DECEMBER 2000 were presented to the Board for approval. M/S/C (Wilson-Negrete) that the Director's fees and expenses for December 2000 be approved. 2 RESOLUTION 2001.01 - A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT AUTHORIZING THE DISTRICT TO BORROW FROM CITIZENS BUSINESS BANK was presented to the Board for approval. M/S/C (Sturgeon-Negrete)that Resolution 2001.01 be approved. PROPOSED SOUTHERN CALIFORNIA EDISON RATE INCREASE. The General Manager stated that the District should consider the need for a general rate increase for both water and sewer services; that consideration also be given to setting a Public Hearing to discuss various options involving rate changes, information only. President Lightfoot requested that a letter precede any public hearing, explaining to consumers the reason for the proposed rate increases; that an ad-hoc committee, consisting of Directors Lightfoot and Goodin with Director Wilson as an alternate, be formed to discuss rate options; that a Board workshop be scheduled, after the committee meets, to discuss alternatives, options, etc. Information only. CLAIM FOR DAMAGES AT 7120 CONE JO, SAN BERNARDINO, BY TIM MAZZA. M/S/C (Negrete-Sturgeon) that the claim for damages at 7120 Conejo from Tim Mazza be denied and referred to District's Legal counsel and Insurance Agency. JANUARY 2, 2001 RELEASES OF LIEN FOR DELINQUENT WATER AND SEWER ACCOUNTS. List of liens released on January 2, 2001 was reviewed. Information only. INCOME STATEMENT FOR NOVEMBER 2000. The Draft Income Statement for November 2000 was reviewed. Information only. GENERAL MANAGER'S REPORT The General Manager reported on District operations to date; that the excavation of the underground pool on the three (3) acre parcel had been completed and that the escrow would soon be closing; that a request to lease the vacated building on that site had been received. Information only. ORAL COMMENTS FROM BOARD OF DIRECTORS. Director Goodin stated that he was no longer on the Board of Special District's. information only. Director Wilson stated that he would contact Bill Leonard as a possible speaker when the District hosts Special Districts in April, Information only. There being no further verbal or written comments from the Directors, this section of the meeting was closed. CSDA - PRACTICALITIES 2001, DISTRICT MANAGEMENT, GOVERNANCE AND LEADERSHIP, DOUBLE TREE HOTEL, MONTEREY, JANUARY 31-FEBRUARY 1, 2001. Information only. ASBCSD MEMBERSHIP MEETING -SIERRA LAKES GOLF/COUNTRY CLUB, FONTANA, CA., JANUARY 15, 2001. information only. ADJOURN The meeting was adjourned at 6:40 p.m. Glenn R. Lightfoot, President Robert E. Martin, Secretary Minutes:01/08/01 CERTIFICATE OF LIEN JANUARY 22, 2001 ACCOUNT OWNERS~ PROPERTY AMOUNT NUMBER NAI~~.7 ADDRESS OWED //~-/~ ~_~/~/~ ~ -- 1298 MARSHALL BLVD 78.67 1. 002-0057-3* 2. 008-1112-2' ~'~' ~ ~'/~-- 26869 HILLVIEW ST 102.02 3. 014-0138'5 --'~(~ 5681 DOGWOOD ST 4. 081-0099'4' 25840 FISHER ST '17.40 5. 093-0013-3'+ 26891 9TH ST 116.41 6. 093-0020'3 26979 9TH ST 135.48 7. 093-0021-3' 27037 9TH ST 56.32 8. 094-0019-2' 7623 DEL ROSAAVE 9. 103-0170-3' 7752 STERLING AVE 53.30 10. 111-0140'6' 26230 6TH ST 104.25 11. 111'0183'5'+ 26129 CYPRESS ST 32.62 12. 133-0081'4' 2904 SEINE AVE 17.89 13. 141-0094'0 3613 PIEDMONT DR 47.10 14. 144-0522'2' 7738 PEACOCK AVE 119.00 15, 144-1692-1' 27176 HIBISCUS ST 17~ 16. 162-0351-1 7377 BROOIWVOOD LN 74.24 TOTAL $1,282.12 * STILL OWNS PROPERTY + MULTIPLE UNITS Page 1 of 1 East Va ' ey Water"District TO: BOARD OF DIRECTORS FROM: ALBERTA M. HESS / CHIEF FINANCIAL O FFICER'~"~w''-- SUBJECT: DISBURSEMENTS DURING THE PERIOD JANUARY 4, 2001 THROUGH JANUARY 10, 2001 CHECK NUMBERS 183538 THROUGH 183726 IN THE AMOUNT OF $792,148.22 WERE ISSUED. PAYROLL CHECKS 8338 THROUGH 8390 IN THE AMOUNT OF $58,324.90 WERE DISTRIBUTED ON JANUARY 4, 2001. TOTAL OF ACCOUNTS PAYABLE DISBURSEMENTS AND PAYROLL FOR THE PERIOD - $850,473.12. ANDERSON/MALODY ~a; SCOTT,, LLP TERRY P. EHEA, January 10, 2001 THou*s*. 8. ALI¢IB OREJEL, ROBERT W, MARTtN. C,P.A, Board of Directors East Valley Water District Post Office Box 3427 San Bemardino, California 92413 We are pleased to confirm our understanding of the services we are to provide East Valley Water District for the year ended June 30, 2001. We will audit the financial statements of East Valley Water District as of and for the year ended June 30, 2001. Also, the document we submit to you will include the schedule of expenditures of federal awards that will be subjected to the auditing procedures applied in our audit of the financial statements. Audit Objectives The objective of our audit is the expression of an opinion as to whether your financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the financial statements taken as a whole. The objective also includes reporting on - · Internal control related to the financial statements and compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards. · Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a direct and matedal effect on each major program in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Our audit will be conducted in accordance with generally accepted auditing standards; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of OMB Circular A-133, and will include tests of accounting records and other procedures we consider necessary to enable us to express such an opinion and to render the required reports, if our opinion on the financial statements or the Single Audit compliance opinion is other than unqualified, we will fully discuss the reasons with you in advance. SAN BEF~NARD/NO, CA 92401 CALIFORNIA SOCIETY OF (909) 88g-0871 * (909) 824.673E · FAX (909) 889.5361 V Board of Directors January 10, 2001 East Valley Water District Page 2 Management Responsibilities Management is responsible for establishing and maintaining internal control and for compliance with the provisions of contracts, agreements, and grants. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that federal award programs are managed in compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is responsible for making all financial records and related information available to us. We understand that you will provide us with such information required for our audit and that you are responsible for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, including the schedule of expenditures of federal awards, but the responsibility for the financial statements remains with you. That responsibility includes the establishment and maintenance of adequate records and effective internal control over financial reporting and compliance, the selection and application of accounting principles, and the safeguarding of assets. Management is responsible for adjusting the financial statements to correct material misstatements and for confirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Additionally, as required by OMB Circular A-133, it is management's responsibility to follow up and take corrective action on reported audit findings, if any. Audit Procedures - General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. As required by the Single Audit Act Amendments of 1996 and OMB Circular A-133, our audit will include test of transactions related to major federal award programs for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that a material errors, fraud, other illegal acts, or noncompliance may exist and not be detected by us. In addition, an audit is not designed to detect errors, fraud, or other illegal acts that are immaterial to the financial statements or to major programs. However, we wiII inform you of any material errors and any fraud that comes to our attention. We will also inform you of any other illega~ acts that come to our attention, unless cleady inconsequential. We will include such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the pedod covered by our audit and does not extend to matters that might arise during any later periods for which we are not engaged as auditors. Board of Directors January 10, 2001 East Valley Water District Page 3 Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will request wdtten representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. Audit Prooedures - Internal Controls In planning and performing our audit, we will consider the internal control sufficient to plan the audit in order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing our opinions on East Valley Water District's financial statements and on its compliance with requirements applicable to major programs. We will obtain an understanding of the design of the relevant controls and whether they have been placed in operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Tests of controls relative to the financial statements are required only if control dsk is assessed below the maximum level. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. As required by OMB Circular A-133, we will perform tests of controls to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements, applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to OMB Circular A-133. An audit is not designed to provide assurance on internal control or to identify reportable conditions, However, we will inform the Board of Directors of any matters involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the ir~ternal control that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. We will also inform you of any nonreportable conditions or other matters involving internal control, if any, as required by OMB Circular A-133. Board of Directors January 10, 2001 East Valley Water District Page 4 Audit Procedures - Compliance Our audit will be conducted in accordance with the standards referred to in the section titled Audit Objectives. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of East Valley Water District's compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. OMB Circular A-133 requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major programs. Our procedures will consist of the applicable procedures described in the OMB Circular A-133 Compliance Supplement for the types of compliance requirements that could have a direct and matedal effect on East Valley Water District's grant program. The purpose of those procedures will be to express an opinion on East Valley Water District's compliance with requirements applicable to the grant program in our report on compliance issued pursuant to OMB Circular A-t33. Audit Administration, Fees, and Other We understand that your employees will prepare alt cash, accounts receivable, or other confirmations we request and will locate any documents selected by us for testing. At the conclusion of the engagement, we will complete the appropriate sections of and sign the Data Collection Form that summarizes our audit findings. We will provide information to management as to where the reporting packages should be submitted and the number to submit. The workpapers for this engagement are the property of Rogers, Anderson, Malody & Scoff, LLP and constitute confidential information. However, pursuant to authority given by law or regulation, we may be requested to make certain workpapers available to the EPA or its designee, or the U.S. General Accounting Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request, if requested, access to such workpapers will be provided under the supervision of Rogers, Anderson, Malody & Scott, LLP personnel. Furthermore, upon request, we may provide photocopies of selected workpapers to the aforementioned parties. These parties may intend, or decide, to distribute the photocopies or information contained therein to others, including other governmental agencies. Board of Directors January 10, 2001 East Valley Water District Page 5 We expect to begin our audit on approximately August 1, 2001 and to issue our reports no later than September 20, 2001. We estimate that our fees for these services will range from $19,925 to $21,225 for the financial audit and preparation of the state controller's report. We estimated that our fee to perform additional procedures required by Governmental Auditing Standards and OMB Circular A~133 will range from $4,750 to $5,750. The fee estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. Government Auditing Standards require that we provide you with a copy of our most recent quality control review report. Our November 30, 1999, Peer Review report accompanies this letter. We appreciate the opportunity to be of service to East Valley Water District and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, ROGERS, ANDERSON, MALODY & SCOTT, LLP RESPONSE: This letter correctly sets forth the understanding of East Valley Water District By: Title: Glenn R, Lightfoot, Board President Date: ~ . ~'e,~",,~,~--"~ Lawrence S. Timpson, CPA (1891 - 1974) TI/VIPS._.. N GARC'rA ... L V. ne w. OPA (490,,-.,9,3,. CERTIFIED PUBLIC ACCOUNTANTS PARTNERS Ksvin Boyle, CPA Reed Cowan, CPA May 17, 2000 CONSULTANTS To the Owners James G. Nishi, CPA Rogers, Anderson, Mafody & Scott, LLP We have reviewed the system of quality control for the accouming and auditing practice of Rogers, Anderson, Malody & Scott, LLP (the fa-m) in effect for the year ended November 30, 1999. A system of quality control encompasses the ftrrn's orgardzational structure and the policies adopted and procedures established m provide it with reasonable assurance of complying with professional standards. The elements of quality control are described in the Statements on Quality Control Standards issued by the American Institute of Certified Public Accountants (AICPA). The design of the system and compliance with it are the responsibility of the firm. Our responsibility is to express an opinion on the design of the system, and the finn's compliance with the system based on our review. Our review was conducted in conformity with standards established by the Peer Review Board of the AICPA. In performing our review, we obtained an understanding of the system of quality control for the firm's accounting and auditing practice. In addition, we tested compliance with the firm's quality control policies and procedures to the extent we considered appropriate. These tests covered the application of the fa-m's policies and procedures on selected engagements. Because our review was based on selective tests, it would not necessarily disclose all weaknesses in the system of quality control or all instances of lack of compliance with it. Because there are inherent limitations in the effectiveness of any system of quality control, departares fi:om the system may occur and not be detected. Also, projection of any evaluation of a system of quality control to future periods is subject to the risk that the system of quality control may become inadequate because of changes in conditiolls, or because the degree of compliance with policies or procedures may deteriorate. In our opinion, the system of quality control for the accounting and auditing practice of Rogers, Anderson, Malody & Scott, LLP in effect for the year ended November 30, 1999, has been designed to meet the requirements of quality control standards for an accounting and auditing practice established by the AICPA and was complied with during the year then ended to provide the fn'm with reasonable assurance of complying with professional standards. 1610 Harrison Street * Oakland, CA 94612-3379 * 510.832.2325 or 800,941.2727 * Fax 510,465.2979 * E-Mail tg~timpsongamia.¢om Member - Division of Rrms - SEC Practice Section - Amedcan Institute of CPAs Member - Alliott Group - A Worldwide Network of Independent Firms RELEASE OF LIENS V JANUARY 9, 2001 ACCOUNT OWNERS PROPERTY AMOUNT NUMBER NAME ADDRESS OWED 1, 008-1837-3 7232 KENGSINGTON CT 40.18 2. 019-1949-4 26718 MANSFIELD ST 419.63 3. 044-0259-2 25454 26TH ST 33.58 4. 063-0120-1 1468 VALARIA DR 125.99 5. 072-0035-9 7221 ELMWOOD RD 147,12 6. 073-0002-1 6944 DWIGHT WAY 55.90 7. 073-0002-2 6944 DWIGHT WAY 83.83 8. 101-0223-0 7499 VALARIA DR 49.15 9. 143-0108-2 27564 CROYDON ST 107.96 10, 151-0121-0 27134 3RD ST 81.72 TOTAL ~ $1,145.06 +PAID THROUGH TAX ROLLS Page 1 of 1 II, East Wa District Pres,dent Donald O. (~0odin Vice President 1155 Del Rosa Avenue., P.O. Box 3427 Kip E. Sturgeon Director San Bernardino, California 92413 Edward S, Negrete (909) 889-9501 Olrector George E. "Skip" Wilson January 16, 2001 Director Robert E. Martin General Manager Alberta M. Hess Chief Rnancta[ Officer Mr. Martin Meza, Trust Review Specialist US Bank Corporate Trust Services 550 South Hope Street, suite 500 Los Angeles, CA 90071 Re: Arbitrage Calculation of 1996 Refunding C.O.P. Dear Mr. Meza: Pursuant to Article VII, Section 708 of the 1996 Trust Agreement, there is no rebatable arbitrage due to the Federal Government. Enclosed is the Calculation of Excess' Investment Earnings prepared by our auditors, Rogers, Anderson, Malody and Scott. If you have any questions, please call me. Sincerel~ , Alberta M. Hess, CPA Chief Financial Officer Enclosure (1) AMH:waf cc: Read File Administration (909) 895-4900, Fax (909) 889-5732 · Engineering (909) 888-8986, Fax (909) 383-1481 Customer Service & Finance (909) 889-9501, Fax (909) 888-6741 $8,140,000 REFUNDING CERTIFICATES OF PARTICIPATION SERIES 1996 Evidencing Proportionate Interests of the Owners Thereof in Installment Purchase Payments to be Made by the EAST VALLEY WATER DISTRICT As the Purchase Price Pursuant to an Installment Purchase Agreement with EAST VALLEY PUBLIC FACILITIES CORPORATION CALCULATION OF EXCESS INVESTMENT EARNINGS FOR THE PERIOD MAY 14, 1996 TO NOVEMBER 30, 2000 TABLE OF CONTENTS Schedule Page Report 1-2 Excess Investment Earnings Summary for the period May 14, 1996 to November 30, 2000 3 Introduction 4-5 Summary of Requirements, Assumptions and Conclusions 6 - 9 Schedules Net Investment Cash Flows: 1986 Escrow Fund One 10 1989 Highland System Escrow Fund Two 11 1989 Escrow Fund Three 12 Costs of Issuance Fund Four 13 Excess Investment Earnings of Combined Net Investment Cash Flows Five 14 - 15 Investment Yield of Combined Net Investment Cash Flows Six 16- 17 Installment Payment Yield Seven 18 - 19 JAY H, ZERCHER. C.PA. ROBERT B, MEMORY, CP.A. PHILUP H. WALLER, C.P.A. vRogERS, ANDERSON, MALODY &: SCOTT, LLP T8RRY CEF~TIFIED PUBLIC AOCOUNTANT$ CYNTHIA L SAKS, CP.A SRIAN W. TOMPKINS, C.P.A LSENA EHANBHAG, C.F.A. ~THLEEN L, DEVALK, C.P.A. LAURIE K, MARSCHER, CPA, THOMAST PRILL, C.PA ROBERT W. MAR'~IN, C.P.A, JOSEPH P WALSH. CP.A. Board of Directors East Valley Public Facilities Corporation $8,140,000 REFUNDING CERTIFICATES OF PARTICIPATION SERIES 1996 Evidencing Proportionate Interests of the Owners Thereof in Installment Purchase Payments to be Made by the EAST VALLEY WATER DISTRICT As the Purchase Price Pursuant to an Installment Purchase Agreement with EAST VALLEY PUBLIC FACILITIES CORPORATION We have completed our engagement to calculate the excess investment earnings from May 14, 1996 to November 30, 2000, relating to the above-captioned bond issue. The scope of our engagement consisted of performing certain computations, set forth as Schedules in this report, which relate to the rebate requirement. Our engagement did not include independent determination of which funds are subject to or exempt from rebate, determination of whether there were prohibited payments or imputed receipts, or an audit or review of the investments acquired with gross proceeds or the payment of debt service on the Certificates. We have relied entirely on information provided by you and the Trustee without independent verification, and we express no opinion as to the completeness, accuracy, or suitability of such information for purposes of calculating rebate liability with respect to the Certificates. We also have undertaken no responsibility to audit or review the tax-exempt status of interest on the Certificates or any other aspect of the Certificate program and no opinion is expressed on any matter other than rebate liability to the extent set forth below, and we are under no obligation to consider any information obtained by us pursuant to this engagement for any purpose other than determining such rebate liability. Aisc, we have no obligation to update this opinion or the Report delivered herewith because of any events occurring, changes in Treasury regulations, or data or information received, subsequent to the date hereof. SAN BERNAROINO, CA 92401 CALIFORNIA SOCIETY OF -1- (909) 889.0871 · (909)824-6736 . FAX(909)889.53E1 Board of Directors East Valley Public Facilities Corporation The exclusion, under Section 103(a) of the Internal Revenue Code of 1986 from gross income for federal income tax purposes of the interest component of Installment Payments (and the interest payable with respect to the Certificates) is based upon compliance with certain requirements of the Code. Included among such requirements is Section 148(0 of the Code that requires that certain excess investment earnings be rebated to the federal government. Certain assumptions used in the preparation of the Schedules are described in the Summary of Requirements, Assumptions and Conclusions. Based on our computations and assumptions, the amount of excess investment earnings for the period covered by this Report is $(5,842.06). Since the investment yield is less than the installment payment yield, rebatable arbitrage is $0.00. -2- $8,140,000 Refunding Certificates of Participation Series 1996 East Valley Water Distdct East Valley Public Facilities Corporation Excess Investment Earnings Summary For The Period May 14, 1996 -November 30, 2000 Investment Yield: 4.96975% Installment Payment Yield: 4.97432% Net Investment Earnings: 1986 Escrow Fund $ 47,739.12 1989 Highland System Escrow Fund 551,500.11 1989 Escrow Fund 187,772.67 Costs of Issuance Fund 1,572.42 Total Net Investment Earnings $_~ 788,584.32 Excess Ir~vestment Earnings as of November 30, 2000: 1986 Escrow Fund $ (56.51) 1989 Highland System Escrow Fund (560.68) 1989 Escrow Fund (144.17) Costs of Issuance Fund (80.70) Total Excess Investments Earnings (842.06) Computation Date Credit (5,000.00) Net Excess Investment Earnings ~ -3- $8,140,000 Refunding Certificates of Participation Series 1996 East Valley Water District East Valley Public Facilities Corporation Introduction A. General Description of Issue On May 14, 1996 (the "issue Date"), the East Valley Water District, (the "District"), located in the County of San Bemardino, California, entered into an installment Purchase Agreement, dated as of March 15, 1996 (the "Agreement"), between East Valley Public Facilities Corporation (the "Corporation"), as seller, and the District, as buyer, which provided for installment payments (the "Installment Payments") to be made by the District to the Corporation in a total principal amount of $8,140,000. The interest component of the Installment Payments is based upon a fixed rate of interest. Pursuant to an Assignment Agreement dated as of March 15, 1996, between the Corporation and First Trust of Carifornia, National Association as trustee (the "Trustee"), the Corporation assigned its rights to receive Installment Payments to the Trustee, and pursuant to a Trust Agreement, dated as of March 15, 1996, the Trustee executed and delivered to B.A. Securities, Inc. underwriters, ceri:ificates of participation (the "Certificates") representing direct, undivided, fractional interests in the Instal~ment Payments. The Agreement was entered into to enable the District to provide moneys for: (1) refund the Installment Payment Agreement dated as of December 1, 1986 ("the 1986 Agreement"); (2) refund the Installment Payment Agreement dated December 1, 1986, amended June 1, 1989 ("the 1989 Highland System Agreement"); and (3) refund the Installment Payment Agreement dated as of June 1, 1989 ("the 1989 Agreement"). The 1986 Agreement was entered into to enable the District to partially pay costs of the acquisition of the High,and Water System. The 1989 Highland System Agreement and the 1989 Agreement was entered into to enable the District to pay capital costs of certain infrastructure improvements. Pursuant to an Assignment Agreement, dated December 1, 1986, between the District and Security Pacific National Bank, as trustee (the "Prior Trustee"), the District assigned its rights to receive 1986 Installment Payments to the Prior Trustee, and pursuant to a Trust Agreement dated December 1, 1986, the Prior Trustee executed and delivered to the purchaser thereof Certificates of Participation (the "1986 Certificates") representing direct, undivided, fractional interests in the 1986 Installment Payments. -4- $8,140~000 Refunding Certificates of Participation Series 1996 East Valley Water District East Valley Public Facilities Corporation A. General Description of Issue {continued) Pursuant to an Assignment Agreement, dated December 1, 198(~, amended June 1, 1989, between the Distdct and Security Pacific National Bank, as trustee (the "Prior Trustee"), the D[stdct assigned its rights to receive 1989 Highland System Installment Payments to the Prior Trustee, and pursuant to a Trust Agreement dated December 1, 198(~, amended June 1, 1989, the Prior Trustee executed and delivered to the purchaser thereof Certificates of Participation (the "1989 Highland System Certificates") representing direct, undivided, fractional interests in the 1989 Highland System installment Payments. Pursuant to an Assignment Agreement, dated as of June 1, 1989, between the District and Security Pacific National Bank, as trustee (the "Prior Trustee"), the District assigned its rights to receive 1989 installment Payments to the Prior Trustee, and pursuant to a Trust Agreement dated as of June 1, 1989, the Pr[or Trustee executed and delivered to the purchaser thereof Certificates of Participation (the "1989 Certificates") representing direct, undivided, fractional interests in the '1989 installment Payments. B. Rebate Requirement The exclusion, under Section 103(a) of the internal Revenue Code of 198(~ (the "Code"), from gross income for federal income tax purposes of the interest component of installment Payments (and the interest payable with respect to the Certificates) is based upon compliance with certain requirements of the Code. Included among such requirements is the requirement of Section 148(f) of the Code that certain excess investment earnings be rebated to the federal government (the "Rebate Requirement"). c. Purpose of Report The District has employed our firm to calculate excess investment earnings in accordance with applicable requirements. The purpose of this Report is to provide the computations relating to the Rebate Requirements (the "Schedules") and to set forth the assumptions upon which such computations are based and the conclusions resulting from the assumptions. The receipts and expenditures set forth in the Schedules are taken from investment records provided to us by the Trustee and Management personnel of the East Valley Public Facilities Corporation. This report pertains to the period from the Issue Date to November 30, 2000. -5- $8,140,000 Refunding Certificates of Participation v Series 1996 East Valley Water District East Valley Public Facilities Corporation Summary of requirements, assumptions and conclusions A. Matters Regarding Dates 1. Bond Year. The District has selected the last day of the first bond year as November 30, 1996; subsequent bond years end on November 30, in each calendar year. 2. Computation Dates. Rebatable arbitrage (if any) is required to be paid to the federal government following the end of each period of five bond years during the term of the Agreement and upon payment of the issue in whole. The first installment computation date for the issue is November 30, 2000 (that is, the last day of the fifth bond year). Subsequent installment computation date is November 30, 2005, with the final installment computation date being December '1, 2009, the final maturity of the issue, assuming the Installment Payments and Certificates are not paid in full prior to their final maturity. 3. Rebate Payment Dates. Rebatable arbitrage (if any) is required to be paid to the federal government no later than 60 days after each computation date. The first payment (if any) to the federal government is required to be made no later than January 29, 2001. B. Nonpurpose Investments 1. No Purpose investments. Purpose investments were not acquired with the proceeds of the Certificates. No tax-exempt obligations or federal demand deposit State and Local Government Series investments were acquired with the proceeds of the Certificates. C. Expenditures 1. Date of Expenditures. It has been assumed that expenditures were posted on the date upon which checks were written and that it was reasonably expected on the dates upon which checks were written that the same would be delivered and mailed within three business days and that there was no reason to believe that a check would not clear within a reasonable period. Based upon these assumptions, alt expenditures were assumed to have been made on the dates indicated on the investment records provided to us. -6- V $8,140,000 Refunding Certificates of Participation Series 1996 East Valley Water District East Valley Public Facilities Corporation C. Expenditures (continued) 2. Third-Party Payments. It has been assumed that all expenditures were payments to third parties then due and that no expenditures constituted reimbursements for amounts expended prior to the Issue Date except as otherwise indicated on the records of the District and the Trustee. D. Gross Proceeds: 1. Proceeds Taken Into Account. a. Sale proceeds of Certificates: investments were made with sale proceeds of the Certificates and deposited in the following Funds, and have been taken into account in applying the Rebate Requirements: Costs of Issuance Fund Sale proceeds and investment proceeds 1986 Escrow Fund Sale proceeds and investment proceeds 1989 Highland System Escrow Fund Sale proceeds and investment proceeds 1989 Escrow Fund Sale proceeds and investment proceeds b. Installment Purchase Payment Fund: The Installment Purchase Payment Fund was excluded from the computations because it was depleted annually except for a reasonable carryover amount not in excess of the greater of one-twelfth of the annual debt service. c. Transferred proceeds: When proceeds of the 1996 Certificates discharge any of the outstanding principal amount of the 1986 Certificates, 1989 Highland System Certificates and 1989 Certificates (collectively the "Prior Certificates"), the proceeds of the Prior Certificates become transferred proceeds of the 1996 Certificates and cease to be proceeds of the Prior Certificates (the "transferred proceeds rule"). Before becoming transferred proceeds, the Prior Certificates proceeds will be subject to rebate at the Pdor Certificates bond yield. At the time the Prior Certificates become transferred proceeds, they will be subject to rebate at the 1996 Certificates bond yield. -7- $8,140,000 Refunding Certificates of Participation Series 1996 East Valley Water District East Valley Public Facilities Corporation D. Gross Proceeds (continued): The proceeds of the Prior Certificates remaining at the date of refunding was as follows: 1986 Installment Payment Fund $ 121,122 1989 Highland System Installment Payment Fund 236,967 1989 Installment Payment Fund 15,958 Total Installment Payment Funds $ 374,047 1986 Reserve Fund $ 208,020 1989 Highland System Installment Reserve Fund 591,794 1989 Reserve Fund 191,690 Total Reserve Funds $ 991,504 Per the Verification Report prepared by Ernest & Young, Certified Public Accountants and the Tax Certificate prepared by Stradling, Yocca, Carlson & Rauth, the expenditures for debt service on the Prior Certificates will be made first out of the Prior Installment Payments Funds; thus, the transferred proceeds rule does not apply to the Prior Installment Payment Funds. The investment activity allocable to the Prior Reserve Funds will be subject to transferred proceeds rule. 2. Commin.qled Funds. No gross proceeds of the issue were commingled with other funds of the County, the Trustee or other entity. 3. Imputed Investment Eamin,qs. No gross proceeds constituted uninvested amounts deposited or herd in eligible accounts; thus, no imputed investment earnings were taken into account. 4. Imputed Escrow Receipts. No defeasance receipts or excess tax-exempt receipts were found to exist. -8- $8,140,000 Refunding Certificates of Participation Series 1996 East Valley Water District East Valley Public Facilities Corporation E. Computation of Yield: 1. Timely Payment. Installment Payments and payments with respect to the Certificates were paid when due and there is no reason to believe that Installment Payments and payments with respect to the Certificates will not be paid as scheduled. 2. Qualified Guarantee. Installment Payments and payments with respect to the Certificates were not subject to a qualified guarantee. 3. Issue Price. The issue price of the Certificates was $8,132,089.10, representing the par amount of the Certificates of $8,140,000 less discount of $7,910.90. 4. Yield of Bond Payments. The yield of the Installment Payments is 4.97432%, determined on the basis of discounting regularly scheduled Installment Payments to the issue price of the Certificates referenced in 3 above. Additionally $53,059.40 credit enhancement fees paid to AMBAC Indemnity Corporation per the Tax Certificate report prepared by Stradling, Yocca, Carlson and Rauth, special counsel, has been taken into account in computing the yield (see Schedule Seven). 5. Compoundinq Period. Semiannual compounding and a 30-day month/360-day-year were applied in all cases for computing yield. 6. Yield-to-Call Obli,qations. No maturities constituted yield-to-call obligations requiring special computation of yield per the Tax Certificate report prepared by Stradling, Yocca, Cadson and Rauth, special counsel. 7. Special Discount Obligations. No obligations constituted maturities subject to mandatory redemption sold at a discount and requiring special computation of yield per the tax certificate prepared by Stradling, Yocca, Carlson and Rauth, special counsel. F. Rebatable Amount: 1. Computation Date Credit Amount. The amount of computation date credit is $1,000 per bond year. 2. Net Excess Investment Earninqs. The amount of net excess investment earnings for the period covered by this report is $(5,842.06). Thus there is no rebatable arbitrage due to the federal government. -9- Schedule One $8,140,000 Refunding Certificates of Participation Series 1996 East Valley Water District East Valley Public Facilities Corporation Calculation Of Net Investment Cash Flows In The 1986 Escrow Fund For The Period May 14, 1996 to November 30, 2000 Maturity/ Accrued iscount/ Net Future Date (investment) Interest Premium Income Cash Flows Value 05/14/96 ($1,753,447.55) ($1,753,447.55) ($2,192,130.41) 12/01/96 1,801,186.67 1,801,186.67 2,192,073.90 $47,739.12 $0.00 $0.00 $0.00 47,739.12 (56.51) -10- Schedule Two $8,140,000 Refunding Certificates of Participation Series 1996 East Valley Water District East Valley Public Facilities Corporation Calculation Of Net Investment Cash Flows In The 1989 Highland System Escrow Fund For The Period May 14, 1996 to November 30, 2000 Maturity/ Accrued Discount/ Net Future Date (investment) Interest Premium Income Cash Flows Value 05/14/96 ($29,198.42) ($29,198.42) ($36,503.37) 05/14/96 (22,739.37) (22,739.37) (28,428.38) 05/14/96 (228,278.55) (228,278.55) (285,389.97) 05/14/96 (141,568.09) (141,568.09) (176,986.03) 05/14/96 (4,125,559.64) (4,125,559.64) (5,157,704.74) 12/01/96 259,700.44 259,700.44 316,059.72 12/01/96 (21,494.77) (21,494.77) (26,159.49) 06/01/97 137,418.07 137,418.07 163,181.47 12/01/97 337,468.22 337,468.22 391,012.29 V 12/01/97 (21,920.76) (21,920.76) (25,398.80) 06/01/98 131,614.54 131,614.54 146,796.23 12/01/98 4,276,058.44 4,276,058.44 4,716,960.38 $551,500.11 $0.00 $0.00 $0.00 $551,500.11 ($560.68) -11- Schedule Three $8,140,000 Refunding Certificates of Participation Series 1996 East Valley Water District East Valley Public Facilities Corporation Calculation Of Net Investment Cash Flows In the 1989 Escrow Fund For The Period May 14, 1996 to November 30, 2000 Maturity/ Accrued iscount/ Net Future Date (Investment) Interest Premium Income Cash Flows Value 05/14/96 ($9,832.53) ($9,832.53) ($12,292.47 05/14/96 (1,400,771.93) (1,400,771.93) (1,751,221.32 05/14/96 (7,647.53) (7,847.53) (9,560.81 05/14/96 (78,022.98) (78,022.98) (97,543.00 05/14/96 (71,923.17) (71,923.17) (89,917.12 12/01/96 112,194.78 112,194.78 136,542.90 12/01/96 (5,730.39) (5,730.39) (6,973.98 06/01/97 46,675.52 46,675.52 55,426.34 12/01/97 115,126.69 115,126.69 133,393.16 12/01/97 (5,828.95) (5,828.95) (6,753.79) 06/01/98 44,665.11 44,665.11 50,495.94 12/01/98 1,448,868.04 1,448,868.04 1,598,259.99 $187,772.67 $0.00 $0.00 $0.00 $187,772.67 ($144.17). -12- Schedule Four $8,140,000 Refunding Certificates of Participation Series 1996 East Valley Water District East Valley Public Facilities Corporation Calculation Of Net Investment Cash Flows In the Costs of Issuance Fund For The Period May 14, 1996 to November 30, 2000 Maturity/ Accrued Discount/ Net Future Date (Investment) Interest (Premium) Income Cash Flows Value 05/14/96 ($54,198.00) ($54,198.00) ($67,757.42) 05/16/96 (16,373.00) (16,373.00) (20,463.66) 06/03/96 (151.00) 150.29 (0.71) (0.89) 06/28/96 2,950.00 2,950.00 3,665.96 07/01/96 (275.00) 275.25 0.25 0.31 07/10/96 9,900.00 9,900.00 12,282.57 07/26/96 900.00 900.00 1,114.16 07/31/96 21,930.00 21,930.00 27,133.60 08/01/96 (248.00) 247.40 (0.60) (0.74) 08/06/96 11,100.00 11,100.00 13,722.59 09/03/96 (107.00) 107.51 0.51 o.e3 10/01/96 (96.00) 95.54 (0.46) (0.56) 11/01/96 (99.00) 99.00 0.00 0.00 12/02/96 (98.00) 98.13 0.13 o. 16 01/02/97 (102.00) 102.17 0.17 0.21 02/03/97 (102.00) 101.71 (0.29) (0.35) 03/03/97 (91.00) 91.14 o. 14 o. 17 04/01/97 (102.00) 102.69 0.69 0.83 05/01/97 (102.00) 101.59 (0.41) (0.49) 05/06/97 25,364.00 25,364.00 30,222.24 $0.00 $0.00 $0.00 $1,572.42 $1,572.42 ($80.70) -13- Schedule Five ~.v '~'~' Page 1 of 2 $8,140,000 Refunding Certificates. of Participation Series 1996 v East Valley Water District East Valley Public Facilities Corporation Excess Investment Earnings of Combined Net Investment Cash Flows As of November 30, 2000 Future Change Net Future Value In Date Cash Flow Value Factor Periods 05/14/96 ($1,753,447.55) $ (2,192,130.41) 1.250183 9.0889 05/14/96 (29,198.42) (36,503.37) 1.250183 9. 0889 05/14/96 (22,739.37) (28,428.38) 1.250183 9. 0889 05/14/96 (228,278.55) (286,389.97) 1.250183 9.0889 05/14/96 (141,568.09) (176,986.03) 1.250183 9.0889 05/14/96 (4,125,559.64) (5,157,704.74) 1.250183 9. 0889 05/t4/96 ($9,832.53) (12,292.47) 1.250183 9.0889 05/14/96 (1,400,771.93) (1,751,221.32) 1.250183 9.0889 05/14/96 (7,647.53) (9,560.81 ) 1.250183 9. 0889 05/14/96 (78,022.98) (97,543.00) 1.250183 9.0889 05/14/96 (71,923.17) (89,917.12) 1.250183 9.0889 05/14/96 ($54,198.00) (67,757.42) 1.250183 9. 0889 05/16/96 (16,373.00) (20,463.66) 1.249842 9.0778 06/03/96 (0.71) (0.89) 1.246945 8.9833 06/28/96 2,950.00 3,665.96 1.242698 8.8444 07/01/96 0.25 0.31 1.242189 8.8278 07/10/96 9,900. O0 12,282.57 1.240864 8. 7778 07/26/96 900.00 1,114.16 1.237958 8.6889 07/31/96 21,930.00 27,133.60 1.237282 8.6667 08/01/96 (0.60) (0.74) 1.237113 8.6611 08/06/96 11,100.00 13,722.59 1.236269 8.6333 09/03/96 O. 51 0.63 1.231722 8. 4833 10/01/96 (0.46) (0.56) 1.227024 8.3278 11/01/96 0.00 1.222010 8.1611 12/01/96 1,801,186.67 2,192,073.90 1.217017 7.9944 12/01/96 259,700.44 316,059.72 1.217017 7.9944 12/01/96 (21,494.77) (26,159.49) 1.217017 7. 9944 12/01/96 112,194.78 136,542.90 1.217017 7. 9944 12/01/96 (5,730.39) (8,973.98) 1.217017 7.9944 12/02/96 O. 13 O. 16 1.216850 7,9889 -14- Schedule Five ~'~ ~'~ Page 2 of 2 $8,140,000 Refunding Certificates of Participation Series 1996 East Valley Water District East Valley Public Facilities Corporation Excess Investment Earnings of Combined Net Investment Cash Flows As of November 30, 2000 Future Change Net Future Value In Date Cash Flow Value Factor Periods 01/02/97 0.17 0.21 1.211878 7.8222 02/03/97 (0.29) (0.35) 1.206761 7.6500 03/03/97 O. 14 O. 17 1.201830 7.4833 04/01/97 0.69 O. 83 1.197246 7.3278 05/01/97 (0.41) (0.49) 1.192354 7.1611 05/06/97 25,364.00 30,222.24 1.191541 7.1333 06/01/97 137, 418.07 163,181.47 1.187482 6.9944 06/01/97 46,675.52 55,426.34 1.187482 6.9944 12/01/97 337,468.22 391,012.29 1.158664 5.9944 12/01/97 (21,920. 76) (25,398.80) 1.158664 5.9944 12/01/97 115,126.69 133,393.16 1.158664 5.9944 12/01/97 (5,828.95) (6,753.79) 1.158664 5.9944 06/01/98 131,614.54 148,796.23 1.130546 4.9944 06/01/98 44,665.11 50,495.94 1.130548 4.9944 12/01/98 4,276,058.44 4,716,960.38 1.103109 3.9944 12/01/98 1,448,868.04 1,598,259.99 1.103109 3.9944 $788,584.32 ($842.06) -15- Schedule Six Page 1 of 2 $8,140,000 Refunding Certificates of Participation Series 1996 East Valley Water District East Valley Public Facilities Corporation Investment Yield of Combined Net Investment Cash Flows As of November 30, 2000 Net Present Date Cash Flows Value Fund/Account 05/14/96 ($1,753,447.55) ($1,753,447.55) 1986 Escrow 05/14/96 (29,198.42) (29,198.42) 1989 Highland System Escrow 05/14/96 (22,739.37) (22,739.37) 1989 Highland System Escrow 05/14/96 (228,278.55) (228,278.55) 1989 Highland System Escrow 05/14/96 (141,568.09) (141,568.09) 1989 Highland System Escrow 05/14/96 (4,125,559.64) (4,125,559.64) 1989 Highland System Escrow 05/14/96 ($9,832.53) (9,832.53) 1989 Escrow 05/14/96 (1,400,771.93) (1,400,771.93) 1989 Escrow 05/14/96 (7,647.53) (7,647.53) 1989 Escrow 05/14/96 (78,022.98) (78,022.98) 1989 Escrow 05/14/96 (71,923.17) (71,923.17) 1989 Escrow 05/14/96 ($54,198.00) (54,198.00) Costs of Issuance 05/16/96 (18,373.00) (16,368.54) Costs of Issuance 06/03/96 (0.71) (0.71) Costs of Issuance 06/28/96 2,950.00 2,932.35 Costs of Issuance 07/01/96 0.25 0.25 Costs of Issuance 07/10/96 9,900.00 9,824.69 Costs of Issuance 07/26/96 900.00 891.21 Costs of Issuance O7/31/96 21,930.O0 21,700.94 Costs of Issuance 08/01/96 (0.60) (0.59) Costs of issuance 08/06/96 11,100.00 10,976.58 Costs of Issuance 09/03/96 0.51 0.50 Costs of Issuance 10/01/98 (0.46) (0.45) Costs of Issuance 11/01/96 0.00 Costs of Issuance 12/01/96 1,801,186.67 1,753,445.16 1986 Escrow 12/01/96 259,700.44 252,816.93 1989 Highland System Escrow 12/01/96 (21,494.77) (20,925.04) 1989 Highland System Escrow 12/01/96 112,194.78 109,220.99 1989 Escrow I2/01/96 (5,730.39) (5,578.50) 1989 Escrow 12/02/96 0.13 0.13 Costs of Issuance 01/02/97 0.17 0.16 Costs of I ssu ance -16- Schedule Six ~.~' "~ Page 2 of 2 $8,140,000 Refunding Certificates of Participation Series 1996 East Valley Water District East Valley Public Facilities Corporation Investment Yield of Combined Net Investment Cash Flows As of November 30, 2000 Net Present Date Cash Flows Value Fund/Account 02/03/97 (0.29) (0.28) Costs of issuance 03/03/97 O. 14 0.13 Costs of Issuance 04/01/97 0.69 0.66 Costs of Issuance 05/01/97 (0.41) (0.39) Costs of Issuance 05/06/97 25,364.00 24,175.30 Costs of Issuance 06/01/97 137,418.07 130,532.16 1989 Highland System Escrow 06/01/97 46,675.52 44,336.65 1989 Escrow 12/01/97 337,468.22 312,785.63 1989 Highland System Escrow 12/01/97 (21,920.76) (20,317.46) 1989 Highland System Escrow 12/01/97 115,126.69 106,706.27 1989 Escrow 12/01/97 (5,828.95) (5,402.62) 1989 Escrow 06/01/98 131,614.54 119,030.43 1989 Highland System Escrow 06/01/98 44,665.11 40,394.53 1989 Escrow 12/01/98 4,276,058.44 3,773,444.60 1989 Highland System Escrow 12/01/98 1,448,888.04 1,278,566.08 1989 Escrow $788,584.32 $0.00 -17- Schedule Seven ~ $8,140,000 ,~, Page 1 of 2 Refunding Certificates of Participation Series 1996 East Valley Water District East Valley Public Facilities Corporation Installment Payment Yield For The Period May 14, 1996 to November 30, 2000 Certificate Issue Date: 05114~96 Installment Payment Yield: 4.97432% Matudng Total Debt Date Principal Coupon Interest Service 12/01/96 $360,000.00 3.250% $203 818.39 $563,818.39 06/01/97 180 380.00 180,380.00 12/01/97 485,000.00 3.500% 180 380.00 665,380.00 06/01/98 171 892.50 171,892.50 12/01/98 505,000.00 3.800% 171 892.50 676,892.50 06/01/99 162 297.50 162,297.50 12/01/99 520,000.00 4.000% 162 297.50 682 297.50 06/01/00 151 897.50 151 897.50 12/01/00 550,000.00 4.200% 151 897.50 701 897.50 06/01/01 140 347.50 140 347.50 12/01/01 580,000.00 4.400% 140 347.50 720 347.50 06/01/02 127 587.50 127 587.50 12/01/02 610,000.00 4.500% 127 587.50 737 587.50 06/01/03 113 862.50 113,862.50 12/01/03 640,000.00 4.600% 113 862.50 753,862.50 06/01/04 99,142.50 99,142.50 12/01/04 680,000.00 4.750% 99,142.50 779,142.50 06/01/05 82,992.50 82,992.50 12/01/05 720,000.00 5.000% 82,992.50 802,992.50 06/01/06 64,992.50 64,992.50 12/01/06 760,000.00 5.100% 64,992.50 824,992.50 06/01/07 45,612.50 45,612.50 12/01/07 540,000.00 5.100% 45,612.50 585,612.50 06/01/08 31,842.50 31,842.50 12/01/08 575,000.00 5.300% 31,842.50 606,842.50 06/01/09 16,605.00 16,605.00 12/01/09 615,000.00 5.400% 16,605.00 631,605.00 $8,140,000.00 $2,982,723.39 $11,122,723.39 Schedule Seven ,.~ $8,140,000 ~ Page 2 of 2 Refunding Certificates of Participation Series 1996 East 'Valley Water District East Valley Public Facilities Corporation Installment Payment Yield For The Period May 14, 1996 to November 30, 2000 Certificate Issue Date: 05114~96 Installment Payment Yield: 4.97432% Maturing Total Debt Date Principal Coupon Interest Service Present Value Target Pdncipah $8,140,000.00 Discount: (7,910.90) Insurance Premium: (53,059.40) $8,079,029.70 -19- Putting the Pieces Together! It can be quite a puzzle crafting plans for your agency in the midst of volatile energy prices, revised LAFCO authority and uncertainty in the Bay-Delta. The changes ahead - a maze of regulatory and legal turns - will demand resolve and creativity. Many are rightfully asking how it ali fits together. This day-long briefing will bring you up to speed on three critical issues that will face water agencies in the new year. Public agency board members, directors, managers, attorneys, engineers, and other management staff will greatly benefit from this issue-packed briefing. LAFCO in the 21't Century Effective January 1,2001, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (AB 2838} has made several changes to its predessor, the Cortese~Knox Local Government Reorganization Act of 1985. These changes have a direct impact on how a Local Agency Formation Commission (LAFCO) operates, its functions, members and finances. What do the changes at your LAFC© mean to your water district? Coping With the Energy Crisis As demand outstrips supply and the cost of energy continues to rise, what impact will energy deregulation have on a water agency's bottomline? Water agencies use seven percent of the electricity generated in the state and it is the number one operating expense. What coping options are available to ACWA members? State Board Issues and Perspectives On Phase 8 The State Water Resources Control Board (SWRCB) is resuming Public Hearings for Phase 8, Bay-Delta Water Rights Hearing. Key issues involve water rights and responsibilities for water holders and the remaining responsibilities for meeting the f]ow-dependent objec- tives in the 1995 Bay-Delta Plan. What agencies will be affected and how? Prelimina ,Program ~,g:30,9:00 .. Registration/Continental Breakfast 9:00 - 9:05 IntrOduction and Opening Remarks 'Jan E. Abel, Director, Montecito w~ter District ACWA Region 5 Chair 9:05 - 9:15 Welcome to Monterey The Honorable Daniel Albert, ~. Mayor of Monterey 9.~15 - 10:45 State Board Issues and Perspectives on Phase 81~ Moderator: Chip Wullbrandt, ACWA State Legislative Committee . Jerry Johns, Assistant Chief, Division Of Water Rights State Water Resources Control Board Pane .: Cl,ff Schulz, Attorney, ,Kr6nick, .Mo~k~,itz, Tiedemann & Girard (invited) Gr'~g' Ga~rtrelJ~i' E~irector of Planning, Contra Costa Water District ~'~. Stuart Somach: Attorney, ' 'So/~a~h simmons & Dunn "G ring Thomas);President,- ., Anmimaria Parrella, Executive Officer, !a ounty L FCO I Ctive on California's Keynote speaker Invited 1:00 - 2:30 Co Crisis Moderator: Lon W. House, Ph.D. Gary Arant, General Manager, Valley Center Municipal Water District Jan Smutny-Jones, Chairman, Board of Governors, Independent Systems Operator (invited) Allen Short, General Manager, Modesto Irrigation District (invited) PG&E Representative to be invited 200:;. ' January 31 $ OR MAI[TO: ACWA, P.O. Box 2408, Sacramento, CA 95812-2408 Name: (as you want it to appear on your badge) Title: Organization:. Address: City/State/Zip: Telephone: ( ) FEES: Your fee includes continental breakfast, lunch, and handout materials. Register by January 31, 2001 .......... $105 On-Site Registration ......................... $130 (You will need to register on-site after January 31 .) PAYMENT INFORMATION O Enclosed is my check payable to ACWA O Please charge my fee to my credit card o MasterCard® o Visa® Expiration Date: [T~ Charge Amount: $ Number: Authorized Signature: ACWA guarantees satisfaction with its products and events. OFFICE USE ONLY www.acwanet.com B Data __ 01/13/81 ZZ:56:19 OggA-> East Valle~ gD Page 881 Association of California Water Agencies PRELIMINARY PROGI~ .A~CH 2o ACWA Legislative Symposium t~ · rhe.~gS~or, and Day at ~e Capitol Circuit: Red~inldng C~ifornia'~ Ener~ Furore ' Th~Legishfive Holiday Inn Capitol Plaza ~ Response the E=~v c~i,i, Sacramento · ~solving the ~FED Govemanc~ ~"~ March 20 & 21, 2001 ' C~i~ornia's ~rer ~Urtlr~: ~e ~ere Lessons to be Learned m I mm m I from rile Current Don't ~sS Outl Ener~Supply With an updated name, ACWA's ~lslatlve 5~poslum and D~ at tile Situation? Caplto[ ~ll conUnue to provide you with aCCurate, [imcly InformaBon on th~ · If You Build k. ~1[ hottesl Issues ~acina California's water community. Be there Ule fl~t day. to Th~ Have Water? ~lscover what legislators, s~te officials and others have to say about · Issues and ~voca~ utUIty deregulation, ~rgD. wa~r :ranafers and wa~r whgeUnG. electric Brie~ng On the morning o~ the second day, you ~n pa~iclpate In group vlal~ to · ~gisladve Reception state, legislators m discuss the I~ues. You wUI have time in ~e aRern~n to MARCH · [ ~pl~ Mclng your agency and region. · ~gidafive ~siu - ACWA Is the ~lce or the ~ater community. Don't ~a~e your time and ~orning money at o[~r legislative even~, RCWA guarantees your saUsfacUon with · ~'"'~" pre-registration member price $168 More tint.led information ~11 be sent to you in the coming weeks. For Information on ~her Association even~, contact ACWA's MeetinGs and Membership Department. elO K StreeL $ul~ I00 fiacramgnto. CA Phone: 016,441,4~45 Toll ~e: 888.600.2292 F~: E-mall: ~MDepartmen~acwanet,com Water district' imposes 'Computer surcharge for electricity at' home'in Ir Other purveyors may follow Warehouse operation in example of Victor Valley's Ontario is typical of high- 2.5% Pass-through fee tech migration to area JO~T H. ORl~ THE PRESS-ENTERPIIlSE orr~thebizpress.com Tucked away among the warehouses The soaring cost of electricity is arid iridusttial business parks of south tmpacting the cost of water, as local agen- Ontario, Compaq Computer Corp. is cies scramble to share the pain with oas- quietly changing the way it does busi- tomets, ness., The Victor Valley Water District board The world's largest personal comput- of directors Jan. 16 approved a 2.5% sur- er mal~er increasingly relies on regional charge on the water-use portion of cus- assembly and distributiofi centers such tomers' bills effective Feb. 1 to offset the Victor Yalle~ I/Vater District wells 0perat~ by as the one here to boost sales to large climbing expense of operating its 27 ~[~ctd¢ pumps, commercial clients, while consumer wells, demand for PCs continues to fall. "We have to pass it on to our cus- tial bill, covers only the rate increase This 180,000-square-foot facility at tomers,' said Amy Lyn De Zwart, spokes- approved ~an. 4 for Southern California 1220 Baker Ave. also serves as a prime woman for the Victorville-based agency, Edison by the California Public Utilities example oft,he high-tech corapanies that which pumps 5.2 million gallons of Commission, said Charlie Kr~us, treasur- have flocked to Ontario and neighboring groundwater a year to its 16,000 connec- er/controller for the district. · areas in recent years, but often go unno- tions in Adelanto, Apple Valley, Hesperia, "The surcharge we have now is ticed because their corporate headquar- El Mirage and Victorville. "There's no way designed to exactly cover th~ 15% the ters are elsewhere. we can absorb that rate increase into our PUC granted them," Kraus said.. "Compaq is making a lot' of inroads budget;" The district earmarked $800,000 for in the Western region," said Dayna Fried, The 2.596 surcharge, which will add electricity in its current $7.8 million oper- a spokeswoman ~or the IIouston-based 44 cents a month to the average residen- -~?.'.. ~'~'. ';~,t,,,~',~,' ~ ,;,' :, ,,.',', :':,,,~': ..;: ' ;',,:,.. ~ .',. :,,~,~ ."i .,'.', · ~!~' ....... .,.~... ,,,~.,..,~, ,.., , '~ ,~,,~,.. . , we'~ Techr, we'r "We won't be building a new theme during concrete pouring, said John Beut continued from page 1 park for them, but they will keep us going general manager of the 13-year-old con for awYdle/' she said. "It's a major thing to peny. ~l~ four months designing arches, arbors and have Disney on your r6sum~. It always FoamWorki, which has worked wit rates will add $120,000 annually to Splash Mountain, Pirates of the Caribbean, Wallace and lief husband founded their and $4g.000' for its efforts, Beutz said. the co~t of energy, lOau.~ said. Big Thimder Mountain and the Hatmted original company, Totally Wired, in 1989. Both Beutz and Wallace said Disne The pain may Only be begin- Mansion. The company, which employs inne people, lived up to Its reputation for bein ning, he noted: The PUC is expect- The fa~t pass which Dhneyland began makes electric switch plates and control demanding to work with. particularl er higher rates sought by F~ison time on a thle without standing in line. and her husband derided to create their "I£ you forget one aspect of whi and Pacific Gas & Electric Co. otter Disney officials desig~led fast-pass boxes second company after his "grad night" you're doing, you're asking for trouble, a review of their accoums, that blended in with the theme of each themes for a local high school became Wallace said. "Yc~ better fix it. because "l'ht~, asked o r gna ly for 30%/ attractlott, so Totally Themed didn't need popular, you don't, you'll only be doing one ~ro]e~ liratr~ said. "If the cost is itlstified, to do any design work. "They goz so elaboxate tile school for them." the PUC p~ohably has no other "They gave us the plans they wanted couldn't afford them any more." Wallace Marlene Best. economic developme[ choice hilt to grant it." and we built them.' Wallace said. said. "We decided it was time to make t director for Lake Elsinom said both bus Further rate hikes wUI be pas~d Besides the Disneyland work, Totally profit off that." nesses have been aided by the dty's ccc along to customers, lie said. "If the Themed built a coral display and some Art Meanwhile, FoamWorks, also based in nomic gardening program. ra~esgoup ordown, lcanadlUstit." Dec~ shopping carts for Downtown Lake Elsinore. was doing some work for Thai philosophy, which has bee The impact on thgh Desert bust- Disney Disney as well. adopted by several other Inland l~pi~ ness c~sinmers is ditflcuh {o esu- Totally Themed, winch employs eight FoamWorka, which has 30 employees, cities, emphasizes improving and e~panc male hecause their use varies wide- people has other Disney pro}ects lined up, designed some foam rocks for the lng existing businesses instead of focusin icy in declining to gauge tile impact on spedIiccommetcial tustome,s. Industrial: EraPirei~ffie°niyplace]ef~" for the region during the next 12 month~ The surcharge may Be only the '~hile demand for industrial space In even though he said he expects the rLatio~ tip of tile iceberg [(ir n and mpe the Inland Empire Is expected to increase al economy to slow, as many are predici In,,n: i, stoc, in,op s~ in one day. hionght Hilsgalo,e.com into existence. ,. ing isin'exchangethect,rrent enmnun: anywhere from lS minutes to three hours, manufacturing and customization in ~, ' ~s!?ef.ff_-).l.o~rs, K~_aus said. ' made in Asia, Business customers can The most common requests nc ude ahem c ho iday sales near eve ma'or ~ .We ~'ealreadywrungout of, the pace the rorders online and exped der oading special soP:ware, add ng more computer company in~udingryAp~ie i , sy~ta, rn ~e buick o~the savings, he' ery within ave days, although next-day RAM, and nsta ling DVD drives. Dell Gateway and nte -- have war'ed