Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Agenda Packet - EVWD Board of Directors - 10/23/2007
EastValley Water District 3654 HIGHLAND AVE., SUITE #12, HIGHLAND, CA REGULAR BOARD MEETING October 23, 2007 8:30 A.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 Wednesday prior to the following Tuesday meeting not requiring departmental investigation, will be considered by the Board of Directors ". -------------------------------------------------------- CALL TO ORDER PLEDGE OF ALLEGIANCE I Public Comments 2. Approval of Agenda CONSENT CALENDAR 3. Approval of Board Meeting Minutes for October 9, 2007 4. Accounts Payable Disbursements: Accounts Payable Checks 212073 through 212237 were distributed September 14, 2007 thorough October 3, 2007 in the amount of $1,194,725.38. Payroll Checks for period ended September 14, 2007 and included checks and direct deposits, in the amount of $154,448.04. Total Disbursements for the period were $1,349,173.42. OLD BUSINESS 5. Headquarters Project Review and Update NEW BUSINESS 6. Discussion and possible action regarding Eastwood Farms Mutual Water Company 7. Discussion and possible action regarding audit report for the fiscal year ending June 30, 2007 8. Discussion and possible action regarding Proposal submitted by CDM to perform Design Services, provide Bidding Services and Construction Services for the North Fork Canal Replacement Project (Arnott Property) 9. Discussion and possible action regarding update to the Integrated Management Program Demonstration Project Agreement 10. Discussion and possible action regarding the renewal of the General Manager's employment contract 11. Discussion and possible action regarding disposal of surplus equipment 12. Discussion and possible action regarding ACWA's NWRA California Caucus Ballots 13. Discussion and possible action regarding canceling or rescheduling the December 25, 2007, Board Meeting REPORTS 14. General Manager / Staff Reports 15. Consultant Reports 16. Committee Reports a. General Manager's Contract (Ad -Hoc) b. Board. Policy Update (Ad -Hoc) c. Labor Negotiations (Ad -Hoc) d. Headquarters Project (Ad -Hoc) e. Outreach (Standing) f. Budget (Standing) 17. Oral comments from Board of Directors CORRESPONDENCE 113. Letter to Assemblyman Bill Emmerson from East Valley Water District MEETINGS 19. The San Bernardino Area Chamber of Commerce Symposium "How to Survive the Business Climate in 2008 ", National Orange Show — Damus Building, November 2, 2007 20. Special District and Local Government Institute "Governance Seminar ", Hilton Palm Springs Resort, Palm Springs, February 7 -8, 2008 2 CLOSED SESSION 21. CONFERENCE WITH REAL PROPERTY NEGOTIATOR Government Code Section 54956.8] Property: Parry with whom District will negotiate: 22 +/- Acres of Vacant Land North of Third Street, East of Sterling Ave., South of 5' Street State of California APN(s): 1192-241-01,1192-231-01 TVDA Party who will be negotiating on behalf of the District: Robert E. Martin / Jim Cimino Under Negotiation: Price and Terms of Payment 22. CONFERENCE WITH REAL PROPERTY NEGOTIATOR [Government Code Section 54956.81 Property: Party with whom the District will negotiate: Party who will be negotiating on behalf of the District: Under Negotiation: 23. PUBLIC EMPLOYEE PERFORMANCE EVALUATION [Government Code Section 54957] Title: General Manager ANNOUNCEMENT OF CLOSED SESSION ACTIONS ADJOURN Vacant Land Satinwood Court City of Highland San Bernardino County, State of California APN(s): 1201 - 191 -01 Sarah Capalla Robert Martin/Jim Cimino Price and Terms of Payment -- --- ---- -•-- - - -- -------------------------------------------------------- Pursuant to Government Code Section 54954.2(a), any request for a disability- related 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's Administrative Manager at (909) 885 -4900 at least "72 hours prior to said meeting. - -------------••----------------------- --------------- ------ --- - - -- -- 3 Subiect to approval EAST VALLEY WATER DISTRICT OCTOBER 9, 2007 REGULAR BOARD MEETING MINUTES President Sturgeon "called the meeting to order at 8:30 a.m. Ron Buchwald led the flag salute. PRESENT: Directors Goodin, Le Vesque, Negrete, Sturgeon, Wilson ABSENT: None STAFF: Robert Martin, General Manager; Brian Tompkins, Chief Financial Officer; Ronald Buchwald, District Engineer; Gary Sturdivan, Regulatory Affairs Coordinator; Jim Browning, Information Systems Specialist; William Fites, Information Systems Technician; Justine Hendricksen, Administrative Manager LEGAL COUNSEL: Steve Kennedy GUEST(s): Jo McAndrews (McAndrews & Boyd) APPROVAL OF AGENDA M/S /C (Le Vesque- Goodin) that the October 9, 2007 agenda be approved as submitted. PUBLIC PARTICIPATION President Sturgeon declared the public participation section of the meeting open at 8:31 a.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF SEPTEMBER 25, 2007 BOARD MEETING MINUTES M /S /C (Wilson - Negrete) that the September 25, 2007 Board Meeting Minutes be approved as submitted. RESOLUTION 2007.25 — A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WA'T'ER DISTRICT ACCEPTING (DEDICATION OF SEWERS FOR TRACT 10085 LO'T'S T a 18 M/S /C (Wilson- Negrete) that Resolution 2007.25 be approved. Viinines: '_0!9;0-1 DISBURSEMENT'S M/S /C (Wilson - Negrete) that General Fund Disbursements #212073 through 212237 distributed during the period of September 14, 2007 through October 3, 2007 in the amount of $1,194,725.38 and Payroll Fund Disbursements for the period ended September 14, 2007 in the amount of $154,448.04 totaling $1,349,173.42 be approved. HEADQUARTERS PROJECT REVIEW AND UPDATE Director Le Vesque stated that there are no updates at this time. DISCUSSION AND POSSIBLE ACTION REGARDING PROPOSAL SUBMITTED BY CDM FOR ENGINEERING SERVICES FOR PLANT 150 WATER QUALITY ANALYSIS, PILOT TESTING, PRELIMINARY DESIGN AND EQUIPMENT PROCUREMENT DOCUMENTS The General Manager reviewed the project and provided a detailed power -point presentation to the Board; that a Perchlorate Rule has been adopted and takes effect on October 18, at 6ppb; that the District has been monitoring Perchlorate levels for the last 6 -7 years; that the cost of the proposal will be spread over the next two fiscal years. Director Goodin stated that he needs more time to properly evaluate the proposal but will support it at this time. M/S /C (Wilson -Le Vesque) that the proposal submitted by CDM for Engineering Services for Plant 150 Water Quality Analysis, Pilot Testing, Preliminary Design and Equipment Procurement Document be approved. (DISCUSSION AND POSSIBLE ACTION REGARDING MATERIAL PROCUREMENT PACKAGE FOR THE 6T" STREET AND DATE STREET PIPELINES (PHASE II) The General Manager reviewed Phase II of the project with the Board; that this is a follow -up to the Phase I portion; that there are funds available from a previous bank issue that occurred two years ago; that the General Manager requests authorization to move forward with the pipeline materials bidding process for 6`h and Date Street Pipelines. M/S /C (Goodin- Wilson) that the material procurement package for the 6`h Street and Date Street. Pipeline (Phase II) be approved and that the Board authorize the General Manager to move forward with the bidding process. DISCUSSION AND POSSIBLE ACTION REGARDING PROPOSAL SUBMITTED FROM CDM FOR ENGINEERING SERVICES FOR DEVELOPMENT OF' PRELIMRNTAs V DESIGN REPORT 3 MTET/ -r3RAN E PROCUREMENT PAC KI�_GE FOR 11FLA'1TT 1346 2 Minuces: 10 /9/07 The General Manager reviewed the project and proposal with the Board; that there will be a change in the treatment process at Plant 134; that the new treatment technology will be a membrane process; that the Treatment Plant will increase from 4 million gallons per day to 8 million gallons per day; that the amount approved in the budget was $100,000 but the actual cost will be approximately $300,000. M/S /C (Ne:grete- Wilson) that the proposal submitted by CDM for Engineering Services for Development of Preliminary Design Report & Membrane Procurement Package for Plant 134 be approved. RESOLUTION 2007.20 — A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT IN RECOGNITION OF JAMES E. BROWNING'S TWENTY -FIVE YEARS OF SERVICE M/S /C (Le Vesque - Wilson) that Resolution 2007.20 be approved. President Sturgeon offered his appreciation to Mr. Browning for his twenty -five years of service to the District and presented him with Resolution 2007.20. DISCUSSION AND POSSIBLE ACTION REGARDING THE UPPER SANTA ANA INTEGRATED REGIONAL WATER MANAGEMENT PLAN Information only. DIRECTOR'S FEES AND EXPENSES FOR SEPTEMBER 2007, were presented to the Board for approval. M/S /C (Nilson- Negrete) that the Director's Fees and Expenses for September 2007 be approved as submitted. GENERAL. MANAGER / STAFF REPORTS The General Manager reported on the District's operations to date; that Stater Bros. is having their grand opening ceremony on October 24`h, that pump testing had been completed at Well 107; that representatives from USGS were interested in observing the test; that they tools additional sampling for Isotope testing; the General Manager requested direction from the Board on how they would like him to manage projects as they relate to the current Ad -Hoc and Standing Committee Structures. Mr. Buchwald stated that the North Fork Replacement project is underway. Information only. IJiinutes: 10/9/07 CONSULTANT REPORTS No reports at this time. COMMITTEE REPORTS General Manager's Contract (Ad -Hoc) No report. Board Policy Update (Ad -Hoc) No report. Labor Negotiations (Ad -Hoc) No report. Headquarters Project (Ad -Hoc) No report. Outreach (Standing) No report. Budget (Standing) No report. ORAL COMMENTS FROM BOARD OF DIRECTORS President Sturgeon suggested that each Director contribute $100 towards the District's annual awards banquet that is being held at the Arrowhead County Club on December I't. President Sturgeon also stated that he had. attended Metropolitan Water District's latest press conference and they are requesting farmers cut their water usage by 30 %; they are also looking at solar possibilities for the future. LETTER FROM KATHLEEN ROLLINGS - MCDONALD (LAFCO) TO RICHARD P. JACOBS, ]?RESIDENT OF BARSTOW HEIGHTS COMMUNITY SERVICES DISTRICT ASSOCIATION OF THE SAN BERNARDINO COUNTY SPECIAL DISTRICTS MEMBERSHIP MEETING HOSTED BY SO & ASSOCIATES, APPLE VALLEY INN, APPLE VALLEY OCTOBER 15, 2007 CSDA's "S'P'AYING IN COMPLIANCE" (RALPH M. BROWN ACT, CALIFORNIA PUBLIC RECORDS ACT, CONFLICTS OF INTEREST LAW) VARIOUS DATES WESTERN COALITION OF ARID STATES 2007 FALL CONFERENCE, RENAISSANCE SCOTTSDALIE RESORT, SCOTTSDALE, AZ, OCTOBER 31 — NOVEMBER 2, 2007 ACWA's 2007 FALL CONFERENCE &; EXHIBITION, INDIAN WELLS, NOVEMBER 27-30,2007 THE BOARRD TOOK A FIVE - MINUTE BREAD AT 10:07 A.M. THE BOARD 1UTURNED TO REGULAR SESSION TAT 10:17 A.M Minutes: i0/9/07 CLOSED SESSION The Board entered into Closed Session at 10:17 a.m. as provided for in the California Open Meeting Law, Government code Section 54945.9(a), to discuss the item(s) listed on the agenda. The Board requested that staff leave the boardroom in order to discuss item #25 at 10:38 a.m. Staff returned at 10:57 a.m. ADJOURN TO REGULAR SESSION President Sturgeon declared that the meeting adjourn to regular session. ANNOUNCEMENT OF CLOSED SESSION ACTIONS The :Board returned to regular session at 11:03 a.m. The item(s) listed on the agenda were discussed in Closed Session with no reportable action being taken. ADJOURN The meeting was adjourned at 11:04 a.m. until the next regularly scheduled Board Meeting on October 23, 2007. Robert E. Martin, Secretary Kip E. Sturgeon, President 5 Anuces: 10/9/07 Board Memorandum From: Brian W. Tompkins / Chief FinancjaI Officer ,dr Subject: Disbursements. Recommendation: Approve the attached list of accounts payable checks and payroll issued during the period October 4, 2007 through October 17, 2007. Background: DATE: OCTOBER 23, 2007 Accounts payable checks are shown on the attached listing and include numbers 212237 to 212391 for A total of $601,246.59. The source of funds for this amount is as follows: Unrestricted Funds $601,246.59 Payroll disbursed was for the period ended September 28, 2007 and included checks and direct deposits totaling $140,832.85. Director payroll disbursed was for the period ended September 30, 2007 and included checks and deposits; for a total of $6412.73 Total disbursements $748,492.17. Page: 1 Of 3 Date: Wednesday, October 17, 2.007 East Valley Water District Report: 0. Time: 02:52PM Standard Company: VWDrpt E VWD User: KATHY Check Register - As of: 10/17/2007 Bank Account: Citizens Business Bank 13110 00 -00- 000 -0- 000 -00 -00 Clear Period Check JI Tn Check Payee ID Payee Name Date Post Amount Nbr Tp Tp Date 000001 - 212237 Missing AP CK 1 0/412 00 7 CIT008 CITY OF SAN BERNARDINO 04 -07 6,788.83 212238 212239 AP CK 10/512007 C00020 COUNTY CLERK OF THE BO, 04 -07 1,850.00 212240 AP CK 10/10/200/ ADVO01 ADVANCED TELEMETRY SYt 04 -07 1,350.00 212241 AP CK 10/10/2007 AVA005 AVAYA FINANICIAL SERVICE 04 -07 4,275.54 212242 AP CK 1011012007 ADP002 ADP 04 -07 419.42 212243 AP CK 10/10/2007 AIR005 AIRGAS WEST 10/16/2007 04 -07 83.95 212244 AP CK 1 0/1 01200 7 ALCO07 ALCARAZ -JOSE L 04-07 20'29 212245 AP CK 10/10/2007 ALM007 ALMOROVAR -KIM T 04-07 27'61 212246 AP CK 10/'10/2001 AME019 AMERIPRIDE UNIFORM SERI 04 -07 1,375.92 212247 AP CK 10/'10/2007 ATT007 AT &T 04 -07 575.71 967.80 212248 AP CK 10110/2001 AUT011 AUTO SHOP EQUIPMENT CC 10/16/2007 04 -07 212249 AP CK 10/10/2007 BAS009 BASIN WATER TECHNOLOG' 10/16/2007 04 -07 25,564.64 212250 AP CK 10110/2007 BAT002 BATTEEN -JOHN W 04 -07 3,606.00 212251 AP CK 10/10/2007 BEL025 BELSER- MAXIME 04 -07 62.66 2122E-22 AP CK 10/10/2007 CCH001 CCH INCORPORATED 04 -07 214.87 212253 AP CK 10/10/2007 CHAO53 CHAVEZ -RALPH 04-07 31'91 1,893.06 212254 AP CK 10(10 /2001 CHE007 CHEM -TECH INTERNATIONA 10116/2007 04 -07 212255 AP CK 10;1012007 COA003 COAST & COUNTRY REAL E! 10/16/2007 04 -07 34.15 212256 AP CK 10,x10 /2001 COF002 COFFMAN- DEASY- DEBORAI 04 -07 43.65 212257 AP CK 10110/2007 DEL045 DELTA DENTAL OF CALIFOR 10/16/2007 04 -07 727.41 212258 AP CK 10/10/2007 DEP002 DEPARTMENT OF HEALTH S 04 -07 12,872.44 212259 AP CK 10 /10 /2001 DON001 DONEGAN TREE SERVICE 10/16/2007 04 -07 1,800.00 212260 AP CK 10/10/2007 END001 ENDERS SECURITY & 10/16/2007 04 -07 14.312.70 212261 AP CK 10/10/2001 EPA001 ePARTNERS INC 04 -07 382.50 212262 AP CK 10 /10 /200-2 ESB001 E.S. BABCOCK & SONS, INC 10/16/2007 04 -07 11,806.00 212263 AP CK 1[1/10/2007 ESP021 ESPINOZA- RAMIRO 04 -07 82.37 212264 AP CK 1()/10/2007 EVE001 EVERSOFT, INC 04 -07 134.71 77.40 212265 AP CK 10/10/2001 EXP002 EXPERIAN 04 -07 36.44 212266 AP CK 10/10/2007 FA1002 FAIRVIEW FORD SALES,INC 04 -07 212267 AP CK 101101200-1 FAR001 FARMER BROS COFFEE 10/15/2007 04 -07 600.03 212268 AP CK 10/10/2007 FON006 FONTAINE -LUIS O4 -07 25.23 212269 AP CK 1011012007 GAB001 GABRIEL EQUIPMENT CO 10/16/2007 04 -07 16,270.83 212270 AP CK 10/10/2007 GEN007 GENUINE PARTS COMPANY 10/15/2007 04 -07 172.36 212271 AP CK 1011012007 HAA001 HAAKER EQUIPMENT COMP. 10/16/2007 04 -07 207.13 212272 AP CK 10/101200-1 HER096 HERNANDEZ -RAMON 04 -07 198.04 212273 AP CK 1 011 0/200 7 HUR001 HURT,- GERALD E 10/15/2007 04 -07 1,600.00 212274 AP CK 10/10/2007 HYD001 HYDRO -SCAPE PROD. INC. 10/16/2007 04 -07 45.21 212275 AP CK 1011012007 INL005 INLAND WATERWORKS SUF 10/1612007 04 -07 4,619.91 212276 AP CK 10/10/2007 INT005 INTERSTATE BATTERY 04 -07 60.65 212277 AP CK 10/10/2007 JOH001 JOHNSON MACHINERY CO 10116/2007 04 -07 18.52 212278 AP CK '1011012001 JRF001 J.R. FREEMAN CO., INC 10/1612007 04 -07 203.66 214279 AP CK 10/10/2007 K1_H001 K & L PLUMBING SUPPLY 04 -07 22.07 212280 AP CK 10/10/2007 LAW002 LAW PLUMBING CO 04 -07 12,825.00 212281 AP CK 10/10/2007 LAW003 LAWSON PRODUCTSJNC 04 -07 8224 212282 AP CK 1011012007 LIM010 LIMITED - SANTORO 04 -07 28.00 212283 AP CK 10110/200/ LOW009 LOWMAN- PATRICIA 04 -07 52.92 212284 AP CK 1()1101200-1 MAL001 MALCOM ENTERPRISES 10/16/2007 04 -07 14,360.00 212285 AP CK 10/10/2007 MAR727 MAKABLE -MIKE 10/16/2007 04 -07 75.23 212286 AP CK 1011012001 MIL001 MILOBEDZKI -JACEK 04 -07 13200.00 212287 AP CK 10/10/2007 MUL011 MULLEN -GREGG 04-07 29'01 212268 AP CK 1011012007 OB1001 OBI- IFEANYI O 04 -07 126.28 212289 AP CK 10110/200-/ OFF007 OFFICETEAM 10115/200704 -07 1,566.80 212230 AF CK 10/10/200/ PEB001 PEBLEY -GARY 04-07 63.32 212291 AP CK 10/10(2007 REA001 READY EQUIPMENT RENT ^ -.: 10116/2007 04-07 c 19..80 2-2292 AP CK 10110/2007 REY034 REYES -MARY 04 -07 59.69 212293 AP CK 10/10/2007 RIS006 RISK MANAGEMENT PROFS; 10/16(2007 04 -07 1.840.00 212294 AP CK 101101200-1 RIV029 RIVEP.O -EADIO 04 -07 85.- -1 Date: Wednesday, October 17, 2007 Time: 02:52PM User: KATHY Bank Account: Citizens Business Bank East Valley Water District Check Register - Standard As of: 10/17/2007 13110 Check JI Tn Check Payee Nb Tp Tp Date ID Payee Name 00 -00- 000 -0- 000.00 -00 Clear Date Page: 2 of 3 Report: 20600.rpt Company: EVWD Period Post Amount r 212295 CK 10/10/2001 ROM022 ROMERO - PATRICIA 04 -07 21.16 212296 AP CK 10/10/2007 ROY004 ROYBAL - RAYMOND 10/15/2007 04 -07 141.00 212297 AP CK 10/10/2007 SAF003 SAF -T -FLO 10/16/2007 04 -07 1,189.72 212298 AP CK 10/10/2007 SAN013 SANTINI -STEVE 04 -07 3,185.00 212299 AP CK 1011012007 SITY001 SITYPTYCKI- RAYMOND 10/16/2007 04 -07 2,635.00 212300 AP CK 10/10/2007 S00003 SO CAL PUMP & WELL SER\j 10115/2007 04 -07 23,321.82 212301 AP CK 1011012001 S00004 SO CAL EDISON COMPANY 10/16/2007 04 -07 21,599.62 212302 AP CK 10/10/2007 STA054 HOMES - STANDARD PACIFIC 04 -07 49.33 212303 AP CK 10/10/2007 SUT008 SUTJININGSIH- SRIADI 04 -07 2425 212304 AP CK 10/10/2007 SWA007 ADMINISTRATORS -S W 04 -07 513.04 212305 AP CK 101101200-/ UND002 UNDERGROUND SERVICE A 10/15/2007 04 -07 144.00 212306 AP CK 10/90/2007 UN1002 UNITED PARCEL SERVICE 04 -07 34.00 212307 AP CK 90/10/2001 UT1001 UTILITY SUPPLY OF AMERIC 04 -07 937.53 212308 AP CK 10/10/2007 VER003 VERIZON WIRELESS 10/16/2007 04 -07 383.42 212309 AP CK 10/10/2007 VER004 VERIZON CALIFORNIA 10116/2007 04 -07 2997 212310 AP CK 10/10/2007 WAX001 WAXIE SANITARY SUPPLY 10/16/2007 04 -07 477.19 212311 AP CK 10/10/2007 WIR003 WIRELESS WATCHDOG, LLC 04 -07, 252.00 212312 AP CK 10/10/2007 WWG001 GRAINGER 10/16/2007 04 -07 279.35 212313 AP CK 1011712001 ADVO01 ADVANCED TELEMETRY BY! 04 -07 7,200.00 212314 AP CK 10117/2007 AIR005 AIRGAS WEST 04 -07 80.05 212315 AP CK 10117/200i ALL001 ALLIED REFRIGERATION 04 -07 145.48 212316 AP CK 10117 /2007 AME001 AMERICAN EXPRESS 04 -07 1,217.54 212317 AP CK 10/17/2007 AME026 AMERIGAS 04 -07 49.79 100.00 212318 AP CK 10117/2007 ARRO09 ARROWHEAD UNITED WAY 04 -07 212319 AP CK 10/17/2007 ARR022 ARREDONDO- CRISTINA 04 -07 47.68 212320 AP CK 10/17/2007 ASCO01 ABC 04 -07 4,465.98 212321 AP CK 10/17/2007 ATT007 AT &T 04 -07 18.98 545.71 212322 AP CK 10/1712007 BAR024 BARR LUMBER CO INC 04 -07 212323 AP CK 10/17/2007 BON013 JOSEPH E BONADIMAN 04 -07 5,195.00 212324 AP CK 1 011 7/200-1 BR0001 BRUNICK, MCELHANEY & BE 04 -07 5,518.75 212325 AP CK 1(3/171200" CAL069 CALIFORNIA UTILITIES EMEI 04 -07 500.00 212326 AP CK 10/17/200i CHE007 CHEM -TECH INTERNATIONA 04 -07 2,028.78 212327 AP CK 10/17/2007 CIT018 CITISTREET 04 -07 7,755.50 212828 AP CK 10/1712007 CLI002 CLINICAL LAB OF S B 04 -07 450.00 212329 AP CK 1 0/1 71200 7 COA003 COAST & COUNTRY REAL F; 04 -07 46.70 212330 AP CK 10/17/2007 COL001 COLTON TRUCK SUPPLY 04 -07 31.66 212:331 AP CK 10/1712001 C00004 COURTNEY'S ELECTRIC, IN( 04 -07 98.13 212332 AP CK 10/17/2001 CRE001 CREST CHEVROLET 04 -07 251.56 212333 AP CK 10/17/2007 DAT002 DATAPROSE, INC. 04 -07 13,534.43 212334 AP CK 10/17/200) DAV041 DAVIS - DOUGLAS & ANNA 04.07 62.05 212335 AP CK 10117/2007 OHL001 DHL EXPRESS (USA) INC. 04 -07 22.22 212336 AP CK 10117/2001 DIE003 DIEHL, EVANS & CO LLP 04 -07 550.00 212337 AP CK 10/1712007 FAC002 FACULTY PHYSICIANS AND 04 -07 315.00 212338 AP CK 1011712001 FA1002 FAIRVIEW FORD SALES,INC 04 -07 336.18 212339 AP CK 10/17/2007 FIR008 FIRST AMERICAN REAL EST. 04 -07 300.00 212340 AP CK '10/17/2007 GAB001 GABRIEL EQUIPMENT CO 04 -07 140.30 212341 AP CK 10/17/2001 GEL001 GELLER -ALLEN 04 -07 70.25 212342 AP CK 10/1712001 GEN007 GENUINE PARTS COMPANY 04 -07 823.93 212343 AP CK 10/1712001 GON067 GONZALEZ- ANISSA 04-07 43.41 212344 AP CK 10 /77 /2001 HAL011 HALE - BRENDA K 04-07 56'14 212345 AP CK 1011712001 HAR009 HARPER AND ASSOCIATES, 04 -07 1,135.00 212345 AP CK 10/17/2007 HIC002 HICKS - RICHARDSON ASSC 04 -07 4.000.00 212347 AP CK 10/17/200-/ HIG023 CARWASH- HIGHLAND HANC 04 -07 505.54 212348 AP CK 10/17/200-1 HUB001 HUB CONSTRUCTION SPEC! 04 -07 71.28 212349 AP CK 10/17/2001 'HUR001 HURT - GERALD E 04-07 896.00 212350 AF CK 10/17/2007 DE002 IDEARC MEDIA CORP. 04 -07 22.00 212351 AF CK 10/17/2001 INL003 INLAND EMPIRE EAC 0x-07 50.00 912352 AP CK 10/171200) INLOO5 INLAND WATER WORKS SUF 04 -07 11,072.44 Date: Wednesday, October 17, 2007 Time: 02:52PM User: KATHY Bank Account: Citizens Business Bank East Valley Water District Check Register - Standard As of: 10/17/2007 13110 Check JI Tn Check Payee Nb Tp Tip ID Payee Name 00 -00- 000 -0- 000 -00 -00 Clear Date Page: 3 of 3 Report: 20600.rpt Company: EVWD Period Post Amount r Bank Account Total 601,246.59 Count 212353 AP CK 10/1712001 KEL018 KELVINGTON- HAROLD V 04 -07 19.15 212354 AP CK 10/17/2001 KRE001 KREPSZ -SEAN 04 -07 7.60 212355 AP CK 10/17/2001 LAB002 LAB SAFETY SUPPLY INC 04 -07 33.82 212356 AP CK 10/1712007 LA0002 LAUER -LOIS 04-07 19.93 212357 AP CK 10/17/2001 LAW003 LAWSON PRODUCTS,INC 04 -07 188.61 212358 AP CK 10/1712001 MIL018 GARY W. MILLER/GMID 04 -07 3,360.00 212359 AP CK 1011712007 MOR071 MORALES - ARTURO R 04-07 726 212360 AP CK 10/171200-1 MOR072 MORRIS -JOHN 04 -07 12.78 212361 AP CK 10/:7/2001 NAT012 NATIONAL NOTARY Assoc[, 04 -07 104.00 212362 AP CK 10/1712007 NEX001 NEXTEL COMMUNICATIONS 04 -07 2,139.31 21236:3 AP CK 10/17/2007 OFF007 OFFICETEAM 04 -07 1,566.80 212364 AP CK lo/ 1 7120 0 1 ONL001 ONLINE RESOURCES CORP( 04 -07 53.10 212365 AP CK 10/1712001 PAR048 PARK -EUN SOOK 04 -07 5.13 212366 AP CK 10/17/2001 PAR049 ESTATE -PARK PLACE GMAC 04 -07 66.33 212367 AP CK 10/17/2007 PAT001 PATTON'S SALES CORP 04 -07 1,376.99 212368 AP O< 10/17/2001 PR0016 SAMUEL ADAM VICKERY 04 -07 960.00 212369 AP CK 10/17/2007 RAJ001 RAJAGUKGUK -LIZ 04 -07 60.18 212370 AP CK 10/17/2001 RAM037 RAMSEY BACKFLOW & PLU 04 -07 3,536.00 212371 AP CK 10/17/2007 REF001 REFUSE DEPT CITY OF S B 04 -07 1,316.39 212372 AP CK 10117/2007 R00002 ROUNSVILLE'S AUTO BODY 04 -07 733.96 212373 AP CK 10,117/2007 SAN007 SAN BOND PUBLIC EMPLOY 04-07 491.51 212374 AP CK 10117/2001 SAN008 SAN BONO AREA CHAMBER 04 -07 500.00 212375 AP CK 1o/17/2007 SAN021 SAN BERNARDINO VALLEY \ 04-07 12,37722 2123'76 AP CK 10/17/200/ SAN207 LIMITED - SANTORO 04 -07 4257 212377 AP CK 10/17/2001 SEN001 SENTRY -TECH SYSTEMS, L. 04 -07 2,915.00 212378 AP CK 10/17/2001 S00003 SO CAL PUMP & WELL SERv 04 -07 3,837.79 212379 AP CK 10/17/2001 S00004 SO CAL EDISON COMPANY 04 -07 264,646.86 212380 AP CK 10/17/2007 STA054 HOMES - STANDARD PACIFIC 04 -07 123.13 212381 AP CK 10/17/2001 STA055 STATE DISBURSEMENT UNP 04-07 1,279.00 212382 AP CK 10/17/2007 TOL006 BROTHERS -TOLL 04 -07 81.46 348.10 212383 AP CK 10/17/2007 TRE002 TREASURER -TAX COLLECT( 04 -07 212384 AP CK 10/1712007 UN1023 United States Treasury 04-07 100.00 212385 AP CK 10/17/2007 USA006 USA MOBILITY WIRELESS, It 04 -07 133.37 212,186 AP CK 10/17/2001 USS003 U.S. BANCORP SERVICE CEI 04 -07 23,400.60 212387 AP CK 10/17/2001 VER004 VERIZON CALIFORNIA 04-07 82'14 212:388 AP CK 10/17/2007 VUL001 VULCAN MATERIALS COMPF 04 -07 496.63 212389 AP CK 10/17/2007 WEL001 WELLS SUPPLY CO. 04 -07 1,257.05 212:390 AP CK 10/17/2001 WWG001 GRAINGER 04 -07 39.85 273.79 212391 AP CK 10/1712007 ZEE001 ZEE MEDICAL SERVICE # 04 -07 Check Count: 154 Bank Account Total 601,246.59 Count Amount Paid Regular 154 601,246.59 Hand 0 0.00 Void 0 0.00 Stub 0 0.00 Zero 0 0.00 Mask 0 0.00 Outstanding 0 0.00 Unused 0 0.00 154 601,246.59 I 1 1 � 1 Q) I (P I a i m 1 � I I (P 1 to ; M 1 i{ 1 I r of of N I 1 ri \ I of rl I 1 I 1 U' zl H 1 ElI m1 H i al 1 1 I Q I 1 WI I al 1 H al ElI 1 WI 1 Q 1 I 1 I a1 1 d H w £, 1 01 FI (n I DI UI N U1 H m w a a F a W G m� [1 Ql VI H I EI n I al L I. r 4 a 1 N a a a M O Q q lay a� O Q M w Pd M �a R W 1 1 1[p[Ot010000mmm ml010 lOMMMrr01 ll11O l0 WlOmCTONNmm mt•'1MCW. -I rl ri 011(11I1r 19 MM 110 101010 .010. . .Q10. . .D. .N or rlO 4. d. . . . . .lO .d. .d. d`M MMmlflmmml(1101000OH�O1 a\ U 1 MMMMmOOrrrr0lm OlWmmmW�- imNNN`imNNdl l(11111(11(1 �1 `-I "iNhWd`CmNNrI�rMV�CW C I NN NtnHMMCWd'd'M MMmWmW WrlI1M M"ImMmmHNNmmMOOMMmWmmlO IOCN NLf1NNN b 1 Hl0[O IONOOI(11f11I11f1 N1f1111000d1 O1 d`W d`W Ma1W MMM�1C �HrNrN•i �D ri ''IW W`i d`ONWOIC VI w 1 O W W W W W W W W W W W W N N L W W U C7 7 QQ �a7 Q nUa Q H C7 na cQo Qa, H 0 c H mH wH z U X H aa X wQC�H QH I H H H H T H H H H H H H H H H H M H H li H : H S+ T IaaaUa uaaauaauaUaaauaauaUaaaa a U aaa a 14 1-10 a a a a Uaa U,4 Uaa Ic4wa aw aaaaaa aaaa a as a as aaa as a wwa as a aaaa L{.Q C I C4 a a H H a E a a a H a a E a a H a E H [[�� a H E H F a H E a H a E H a E H E a a H E a H F F>• E H a a H a UN OlaaazgazaaagaaZaaqazqz agzmzagzaqazqazqzaaqzaqzazwaaq w w w . I SHED E+DE[1H EFOEH EDa�OEaD OEU: DE(kFa Ea a�DEE DF DFO FE alzzzd zdz z zzdzz zd dz d dz oz d zd dzz dz dzd zz 011_- WzWWW WWZWW WzazWaa zWazCA Wzazww zw zwz WW D H E D E H D E H D H E S D H£ D H E H D E E D u I ;Hra ac�a ara r �r ar �racnar �ac�a gar �a ac�rac�ar w c�arc�arr4w W11wWQaPaiQaaaaaaQWaaWQaQaaQaClaaOWa0.lQaaQaQwwaQaQwQawwa Q 1 Q O O 3 F N a W 0 0 Q1 G G N 1 1 Ell 1 ] 1 0 0 0 0 000 0 0 0 0 O O 0 O O O 0 0 O O [ 1000 OaM000N00 Oow0 C Om 1 OW OdlO 0 l0 OON OW O 10000 e� 1 •WM •O . •O • •M •m -mrm -MNC` M 'MW •m •010 •1 0 •NW •HH •rN •r " >L1000W •O •000 •OOMOO •00 .do •r •r0 •m0 •00 •O yl •r 00 •010 WOm •00 HC 1000 •r OroOOW00 •00010 •N •010 •N •Om •0010 -m0 •N -oom -om •O •mOOW W7 I If100tf1WOH000OOOH0001Inr Ht00HW WUIOm mIfIMN10MwmOlN If100110rHONMNI (lOM W E i HHri��r- IN.i� -IN Sri `i�rV l(11DNIf1 U1C�If1 aTMCN dIM�i NN d`M'nCOCN�IfI d1�MC'n t�Ir N[1 r IL' a 1 1 N N 2 O EJ az' 1 O •-1 ` m o w W m N 1 M01 O1 Ol mm01 rr1 r•-'1 N N .. O 1 NrIfINMV`M NN01 r Ifl 4`01011010 d`NmNl06� Ot rm N[0 w OlM N NM01 rm N WuINN !i I001m If1N mNWmrHrrM10101�If1N MON01m IflHmHClor ylr MNOOMOMIA lOHHOIrNrmMd` � I NHfiOrHHHHrir`y"-IO HHlO �-101DOHN WInr OIfl IIIOCOM TONCOOO1MmmM10 NIfINMMN 3 h 1 HHHHNHNHHHNHHHHHNHHNHHN01N 01H N01HNHO1N H0iNNH01N W01N m01m N0101N O \ C N F 01 (Vi i aaaahaUaaahaaaaahaghP +al']a7aahaahaahCCa haaahClahaaa ria C4h r IUVUagUWUVUgUUaUUqUaqaUqaqaUqaUqUaqUaqaUUqaUqaUaqUUq OI N I 1 rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr�vm to to �lv mlo lovu l000000000000000000000000000000000000000000000000000 l000000000000000000000000000000000000000000000000000 1100Ny�C O(.1mmMOrl.'11M O1Mrl0 N 61M 1nrHr•- iHNNOr101flrNHmM Mtfl lOHOr Hlfl lf)lft Ol H �-i d'N G. G�' 1 HHOOONHNHHri000NNO0000NO000000MO000000O0i -IOOMOMNOONNH G. M 1 0000001 Gln Ol Ol G. Ol Ol 4lmmWmmrrl0 l0`D NIC �C V•C MMMMNNCIHHrNNNHH0000'+�C•C. ❑ I �.nHH„ 100000000'. 70000 0000000 0 000 0 000 000 00 0rr••i ri „'. rly �. -1000 ^H i.0 N I I N .. I � I b 1 wl h� I M 6llwlflH NOOd�WWWNr- iNNhh'i�-I rIWWWhh0lhhOMCW Ml0 �101MCWdl d'dlh hh''IN TIO IO mrl CWNNNNO Nw INNWWWWOIN NNt+IMWWOOl0 lO lOWWWNNMO WIO IO . . . . .NONNNWW616101w . . . . NN HW NNNMmM . . . OM IwwNNOOMMmMWW0101WWOOMWWWIO IOWWMwwWWNOWWO \wNwWWNNNWOt IOww 'MM WIDNN NNW NN I IO ID 0101O0CWWWNNwwNNMMWWWWNNNMNlO IO Ol 61 IDM NI(1 lOWWttlhhOi Ol O1h O)h OOOMWWNWMONNNNOO 01 IbHOOW MIfIMMMWWHW0IWNNWwHNMW wIOMMMWMOW Nl0 lOMWWWTlO NIOWwwWD \NWWWWMl0wMMWMNO N INWWOOIN MMIO wS lO l6N WlO IDWwwWNWOONNNN0INNWWOIO IOW rI IOWWHNWWNrI MIOWNMNIOMOONMwMM N h I N N N N N N H N N N N H N N H N N H N N N N N N N N N N N H N N N N N N N N N H N N N N N N N N N W W H N 0101 N N N H N N N N O I O I N I \ I hl Hl \I of N w w w w w w W w w w w w w w w w w w U C7 C7 C7 C7 C7 0 C7 C9 U' C9 C� C7 C1 C7 C7 17 CD a I gC9q qC9 ggC9qaqU' q gC9aa1" UQuow� C7w� ggc7gww''c9 CI C9 ggC9gaa,,qqU' aC7agC9agqC9aqi9 gonov4o WzW wZ WWZW Vlw � W ZFCWWZWR2FCWW2W�CZ WZ WW2WFCWWZ Z W2 WWZ PH WW MH x H H H H H H H H H x �IH H H H x H H H H xxx H x H H H H x x H H H H H H H x H H H H H H H H H H H H H H H x H U IaaaUaaUaaaaU:] uaUa aauaaaauaaauaUaaUaaauVaaaaua as U,:I, Iwaw wa wwaw P, 14 wa wwaw a wwaw a wa wwaw wwa a wa waa wa wwwa a E IwHwEwHEwwHwEO. HaEaHEwwHaEHFwaHaEHF�iwHHawHwFwwHEHFwHEwwHFwHEawwHEa IQWFC r2W 2FC rtWR2FCw rt 212wZFC RCw r22fA2r2 rt wFCZw2FCfA 212 FC t0 rt Zrt rt lAZWZFC aIt KRCW ZFCW 2r2 FC rtW2rt w W W W W W W W W W W w W W W W W W P(7 1 HaEDFaw�PEEpp„„FPH EP�i ]E F��,,rrEPaPE. H EP qF PFE EPE HUw;�P PH PEFaPE PE(-� E PF d Z9 d2FC OIZ 212201 zd2 d22FC2 dr1 dz2 Zd d2 dZZ ZdZZFC dFC dz d2z OIZ d2zz d2 ZZ I[ila WZwla ZWwaW2w WZW 2wwa wz zwW WZ 2W 2WW wzwwazazw ZWW zw ZWWW ZW `� P E H E P H E E P E H H£ E P E H P H g H E E P E H E E P H P H E P H E H£ P H m z E P H E aH >( 7% la> 1( Ja>I>I�>iai4(�>la>(i9arrc�rac�a >.c�»ac�a c�a > +C7>,a >fBlquo>Ic�a >I(7a gE�o�aanaaoaaaagi Financial Statements, EAST VALLEY WATER DISTRICT REPORT ON AUDIT JUNE 30 2007 AND 2006 EAST VALLEY WATER DISTRICT TABLE OF CONTENTS INDEX History and Organization Independent Auditor's Report Management': Discussion and Analysis Statements of Net Assets at June 30, 2007 and 2006 Statements of Revenues, Expenses and Changes in Net Assets for the years ended June 30, 2007 and 2006 Statements of Cash Flows for the years ended June 30, 2007 and 2006 Notes to Financial Statements Auditor's Report on Supplementary Information Statements of Revenues, Expenses and Changes in Net Assets - Water Department Statements of Revenues, Expenses and Changes in Net Assets - Sewer Department Utility Plant in Service Utility Plant Additions and Retirements Page 1 of 2 Exhibit/ Schedule Page 1 -2 0 0 C 1 2 3 Ell 3 5 -11 12-13 14 -15 16-17 19 -40 41 42-45 46-47 48 -51 52-58 0 EAST VALLEY WATER DISTRICT TABLE OF CONTENTS INDEX Unredeemed Elond Coupons - Retired Debt Principal and Interest Repayment Schedule - Certificates of Participation - Series 2001 Principal and Interest Repayment Schedule - Certificates of Participation - Series 1996 Principal and Interest Repayment Schedule - 2004 Project Installment Sale Note Principal,and Interest Repayment Schedule - Department of Water Resources Construction Loan Principal and Interest Repayment Schedule - 2006 Project Installment Sale Note Statement of Net Assets Comments Water Operations Exhibit/ Schedule 5 E 7 0 7 10 Page 2 of 2 Page 59 e 61 62 63 I 65 -71 72-73 Sewer Operations 74-75 EAST VALLEY WATER DISTRICT HISTORY AND ORGANIZATION JUNE 30, 2007 AND 2006 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 by the electors. The Board of Supervisors of San Bernardino County, by action 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. FORMATION OF THE PUBLIC FACILITIES CORPORATION The East Valley Public Facilities Corporation was incorporated October 1986, pursuant to the nonprofit public benefit corporation law of the State of California to provide financial assistance to the District by acquiring and constructing various public improvements, and by acquiring land and related facilities for the use, benefit and enjoyment of the public. NATURE OF E3USINESS The District has been engaged in the furnishing of water service and sewage transmission services to its customers since inception. LOCATION The District has temporarily relocated its office to 3654 East Highland Avenue. The office is situated within the District's boundaries which encompass an area of approximately 25 square miles within the County of San Bernardino, California. DIRECTORS WATER DISTRICT Kip E. Sturgeon President Edward S. Negrete Vice President Donald Goodin George E. "Skip" Wilson Matt Le Vesque -1- PUBLIC FACILITIES CORPORATION George E. "Skip" Wilson President Kip E. Sturgeon 15t Vice President Edward S. Negrete 2nd Vice President Vacant Secretary Donald Goodin Treasurer EAST VALLEY WATER DISTRICT HISTORY AND ORGANIZATION JUNE 30 2007 AND 2006 MANAGEMENT Robert E. Martin General Manager /Secretary Brian W. Tompkins Chief Financial Officer/Treasurer PROFESSIONAL CONSULTANTS General Counsel for the District is the firm of Brunick, McElhaney & Beckett. -2- 0 Board of Directors East Valley Water District 3654 East Highland Avenue San Bernardino, California 92346 INDEPENDENT AUDITOR'S REPORT We have audited the accompanying statements of net assets of East Valley Water District as of June 30, 2007 and 2006, and the related statements of revenues, expenses and changes in net assets and crash flows for the years then ended. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America, and the State Controller's Minimum Audit Requirement for California Special Districts. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of East Valley Water District as of June 30, 2007 and 2006, and the results of its operations, changes in net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America, as well as accounting systems prescribed by the State Controller's Office and state regulations governing special districts. The information identified in the accompanying table of contents as Management's Discussion and Analysis is not a required part of the financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. 1� 10,01 I ✓rr 4- S cam/ S I-P October 16, 2007 MEMBERS AMERKIAN INSTITU -E OF CEP'nF ED PUBLIC ACCON,TANTS , VANIR TOVJEF = 230 NORTH'D' STREET o SUITE 300 G=.'IS'18 SAN BERNARDINO. CA.92407 = ^.RN ASCCIE,!CF '3- :909;889 -08 -I - r909, 324.5736 - FA/ r309, 889.5361 CERTIFIED PUBLIC ACCOUNTANT> WCD$1I2: www.fdmSCpd.nPt JAY H. ERCHER C.P.A. ROBERTB. MEMORY, C.P.A. PHI LUP H. WALLER, C.P.A. BRENDA L ODLE. C.P.A. BREND TERRY P. , C.P.A. KIRK A. FRANKS. G.P.A. ROGERS, ANDERSON, M AL0DY & SCOTT, LLP MATTHEW B. WILSON, C.P.A. CERT /F /ED PUBLIC ACCOUNTANTS LEENA SHANSHAG, C.P.A. NANCY O- RAFFERTY, C.P.A. SCOTT W. MANNO, C.P.A. BRAD WELEBIR. C.P.A. Board of Directors East Valley Water District 3654 East Highland Avenue San Bernardino, California 92346 INDEPENDENT AUDITOR'S REPORT We have audited the accompanying statements of net assets of East Valley Water District as of June 30, 2007 and 2006, and the related statements of revenues, expenses and changes in net assets and crash flows for the years then ended. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America, and the State Controller's Minimum Audit Requirement for California Special Districts. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of East Valley Water District as of June 30, 2007 and 2006, and the results of its operations, changes in net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America, as well as accounting systems prescribed by the State Controller's Office and state regulations governing special districts. The information identified in the accompanying table of contents as Management's Discussion and Analysis is not a required part of the financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. 1� 10,01 I ✓rr 4- S cam/ S I-P October 16, 2007 MEMBERS AMERKIAN INSTITU -E OF CEP'nF ED PUBLIC ACCON,TANTS , VANIR TOVJEF = 230 NORTH'D' STREET o SUITE 300 G=.'IS'18 SAN BERNARDINO. CA.92407 = ^.RN ASCCIE,!CF '3- :909;889 -08 -I - r909, 324.5736 - FA/ r309, 889.5361 CERTIFIED PUBLIC ACCOUNTANT> WCD$1I2: www.fdmSCpd.nPt THIS PAGE LEFT INTENTIONALLY BLANK CE EastValley Water District 3654 East Highland Avenue, Suite 18, Highland, CA 92346 Serving Our Community for Over 5U Years P.O. Box 3427, San Bernardino, CA 92413 BOARD OF DIRECTORS Kip E. Sturgeon President Edward S. Negrete Vice President Donald D. Goodin Director MANAGEMENT'S DISCUSSION AND ANALYSIS George E. "Skip" Wilson Director The District The East Valley Water District (EVWD) 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 for residential and commercial wastewater that is delivered for treatment at a plant owned by the City of San Bernardino Water Department. The District serves the City of Highland and portions of the City of San Bernardino and the County of San Bernardino in California. The Basic Financial Statements East Valley Water District is a special - purpose government 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. The following financial statements for the years ended June 30, 2007 and Matt Le Vesque Director Robert E. Martin General Manager Brian W. Tompkins Chief Financial Officer Ronald E. Buchwald District Engineer 2006 (fiscal years 2006 -2007 and 2005- 2006) 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 Assets, the Statement of Revenue, Expenses, and Changes in Net Assets, and the Statement of Cash Flows. The Statement of Net Assets presents the District's assets and liabilities and the difference, or net, between what is owned and what is owed as of the last day of the District's fiscal year. The Statement of Revenues, Expenses, and Changes in Net Assets describe the financial results of the District's operations for the years reported. These results, or changes in net assets, are the increases or decreases in the bottom line of the Statement of Net Assets. 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 Assets presented on the Statement of Revenues, Expenses, and Changes in Administration (909) 885 -4900, Fax (909) 889 -5732 a Engineering (909) 888 -8986, Fax (909) 383 -1481 Customer Service (909) 889 -9501, Fax (909) 888 -6741 e Finance (909) 381 -6463, Fax (909) 888 -6741 5- - EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS Net Assets 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. Summary Financial Information and Analysis Financial Condition During the year ended June 30, 2007, the District's Total Assets increased by $3.8 million. Overall, this increase is attributable to capital improvements as the District continued to invest heavily in its distribution system and in design of treatment facilities. Current assets also grew, by 3.2 %, despite heavy capital spending. An increase in liquid assets of almost $450 thousand, combined with a 9% decrease in Current liabilities, helped the Districts current ratio grew from 2.2: 1 to 2.5:1. Restricted assets decreased by 17% as construction loan funds were used to finance the projects for which they were intended. Also, preparations to close escrow on a 22 acre parcel of real property resulted in a substantial shift in restricted fund holdings from short term investments to cash equivalents. Escrow closed in August 2007. The District's Net Assets totaled $91.8 million at the end of 2007, a $5.9 million (7 %) increase over net assets at the end of the previous fiscal year. The $5.9 million included operating income of $2.3 million, net non - operating revenue of $1 million, and contributions of cash and infrastructure from developers and other agencies valued at $3.5 million. $81.7 million of the $91.8 million in Net Assets al: June 30, 2007 was invested in 0 capital assets with the remaining $10.1 million classified as unrestricted. The District Board of Directors has designated $2.1 of the $10.1 million in Unrestricted Net Assets as an emergency reserve that can only be spent with authorization from the Board. The increase in net assets of $5.9 million, combined with a decrease in outstanding debt, caused the District's debt to equity ratio to improve from 36.5% to 31.9 %. Operating Results The District produced and sold 25,015 acre -feet of water during the 2006 -2007 fiscal year, 473 acre feet more than in the prior year. This increased production, combined with a rate increase of 7% in August 2006, resulted in an 11.0% increase in water sales to $13.1 million. Total water operating revenues were $13.8 million, an 11.3% increase over the prior fiscal year. Water department operating costs, before general and administrative expenses, rose 10.5 % to $5.6 million. After General & Administrative costs of $3.8 million, and depreciation of $2.2 million, water department operating income was $2.2 million. The most significant factor in these increasing costs continues to be power for pumping. An exceptionally dry year in 2006 -2007 resulted in year round demand levels that caused the District to increase pumping from wells and boosters during peak hours and, therefore, not take advantage of non -peak power rates. As a result, power costs increased 16% over the prior fiscal year and, due to both demand and rate increases, have risen 91 % since fiscal year 1999 -2000. One method used by the District in the past to meet demand while controlling EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS power costs, was through purchasing state project water from the San Bernardino Valley Municipal Water District for groundwater recharge. Higher water levels in wells require less power for pumping. However, a recent court order that the state project reduce water transferred from Northern California to Southern California by at least 30% raises doubt that this relatively inexpensive supplemental water supply will be available in the future. 15.000, 14,000, 13,000. 12,000, 11,000, 10.000. 9,000, 8,000, 7.000. 8,000, Water Dept. Operating Revenue versus Expenses coo 000 000 000 000 000 000 000 000 — — � �� — — — F 2004__. 200.5 2008 —. -- Revenue — Expenses Future water operations will also continue to be affected by water quality regulation. The District is currently contracting for the lease or purchase of wellhead treatment facilities at three of its wells, with plans to build one new groundwater treatment plant, upgrade and expand its existing surface water treatment plant, and participate in a regional treatment plant project on the District's western border. Sewer operating revenues increased to $8.1 million (5.3 %) primarily due to an increase in sewer rates in August 2006. Increased water consumption by commercial customers also contributed as these customers are billed for sewer treatment based on units of water used. Sewer department operating costs consisting of wastewater collection line maintenance, and treatment charges paid to the City of San Bernardino, were $6.0 million, a 3% increase over the prior year. After an allocation of General and Administrative costs of $1.5 million, and depreciation of .6 million, the sewer department had operating income of $44 thousand. -7- Sewer Dept. Operating Revenue versus Expenses 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 2004 2005 zoos 2007 — Revenue — Expenses J Significant changes in general and administrative costs include: 1) an increase in employer contribution rates for the District's defined benefit pension plan 2) a reduction in the utilization of temporary labor and consultants as the District has been successful in hiring and retaining permanent staff to fill vacant positions 3) a reduction in insurance costs as a result of joining a risk pool (SDRMA) Non - Operating Activity The District's net non - operating revenues of $115 thousand are substantially lower than the prior year, which included a $1.9 million gain from the sale of real property. However, rising interest rates helped the District realize a 58% increase in investment returns. Interest expense fell slightly as the District continued to pay down its debt in accordance with amortization EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS schedules. In total the District recorded interest expense of $1,266,209 during the fiscal year of which $711,295 was capitalized to construction projects. Financial Statement Summary (in millions) I ,, 6130/07 6/30/06 i Assets' Term Liab . Liatiillities Net Assets in Net 96.5 24.7 121.2 22.8 6.5 29.3 91.9 13.8 (11.5) 8.1 (8.1) .7 (6) Categories of Net Assets f 90.4 26:9 '117:3 24:5 68 31;3 86.0 12.4 7.7 2.4 7) ME 5.9 5.8 The District is required to present its net assets in three categories: Invested in Capital Assets, Restricted, and Unrestricted. Invested in Capital Assets At June 30, 2007, Invested in Capital Assets included Utility Plant in Service and Construction in Progress of $136.2 million, less Accumulated Depreciation of $39.7 million, for a net utility plant amount of $96.5 million. This amount, M reduced by $25.0 million in Long Term Debt, net of discounts, refunding deferrals, and unspent debt issue proceeds of $10.2 million, to derive an Invested in Capital Assets balance of $81.7 million. Restricted The District had no restricted net assets at June 30, 2006 or 2007. The District does receive capacity fees from developers, which by law are restricted for capital improvements, but the District's expenditures on capital improvements exceed fees collected, resulting in no Restricted Net Assets at year -end. Unrestricted EVWD had unrestricted Net Assets of $10.15 million at June 30, 2007. Of that amount, the board of directors has designated $2.17 million as an emergency reserve. Capital Assets The District spent approximately $5.9 million for expansion or replacement of property, plant, and equipment during 2006 -2007, and another $2.7 million in infrastructure was installed and donated by developers. These amounts are reflected in Utility Plant, or as additions to Construction In Progress, in the accompanying financial statements. Following is a discussion of the facilities and equipment constructed and purchased. Placed In Service During the 2006 -2007 fiscal year the District received dedication of 26,009 feet of underground water pipeline and 22,575 feet of underground sewer EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS pipeline from developers. A developer also conveyed to the District a pump station (Pliant 149), with a generator and hydro- pneumatic tank, capable of serving residences in the District's Mountain pressure zone. District crews and contractors also completed work on: • Phase one of a 36" interzone pipeline: (16,000 feet) on Sterling Ave., and • A new 800' well at the District's Plant 132. Utility Planet in Service — June 30th (in millions) I:Oepartm nt 1 2007 200E Water Source ofSupply,, 23.6 22.5 Pumping 7.8 6.8 Transmission: Distribution 54.4 45.1 Treatment 9.3 9.2 Wastewater: . Ciollection Lines 21.3 20.9 L.anil & General 10.4 10.0 Construction In Progress (CIP) Construction in progress decreased $3.7 million to $9.4 million between June 30, 2006 and June 30, 2007. With approximately 100 jobs in progress, additions to CIP totaled $8.5 million, while $12.2 million was transferred out of CIP in the form of completed jobs that were either capitalized or expensed. -9- More than 50% of costs in CIP at June 30, 2007 were incurred in 6 projects. The largest are: • the design and construction of a new perchlorate / nitrate water treatment plant • installation of a modular uranium / nitrate treatment facility at the District's Plant 40 • design and permitting of new District headquarters and maintenance facilities • install modular nitrate treatment facility at District's plant 27 The location for the new District headquarters has changed with management entering into escrow for a 22 acre site, and abandoning plans to build on a 9.5 acre site currently held. The change has stalled the project while permits for the new site are obtained. One project that had not incurred significant costs through June 2007 is the replacement of the 110 - year -ofd North Fork canal that serves as the intake for the District's treatment plant. Estimated cost to replace the canal with 36" underground pipe is $5.4, up to 75% of which may be eligible for funding by FEMA hazard mitigation funds. The project is scheduled for completion in November 2008. Future Capital Improvements The District's ability to meet regulatory requirements and to meet increased demand on system capacity continue to be the driving forces by which District management develops long term capital plans. EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS New regulation has placed stricter limits Oil the disinfectant by- products discharged from the Districts surface water treatment plant placed in service in 1996. Testing of newer treatment technologies is in progress in order to determine how to retrofit the treatment plant to meet the new standards. Future capacity challenges will be addressed in the update to the District's Water Master Plan being prepared by an independent engineering firm. The Plan will identify and predict demographic shifts and increases in demand for water within the District's service area now, and over the next 25 years. Long Term Debt 1 Credit The District's long -term debt consists of two series of Certificates of Participation (COPS) and two privately placed Installment Sale Agreement (ISA) contracts with a bank. Outstanding Long -Term Debt June 30th 35,000,000 30.000,000 25,000,000 20,000,000 15,000,000 10.wo,000 5,00,000 2004 2005 2006 2007 1111996 COPS 02001 COPS 13 2004 IPA 02006 IPA The COD's are a 1996 series with a balance of $1.73 million and a 2001 Series with an outstandina balance of $8.095 million. Scheduled principal -10- payments on the two Series of $760,000 and $660,000 respectively were made during the year. The ISA contracts were signed in August 2004 and January 2006 for amounts of $10 and $6 million. These loans were structured so Interest paid to the lender qualifies as tax exempt under section 103(a) of the Internal Revenue Code. Scheduled principal payments totaling $338,963 were made on the 2004 contract; and principal payments totaling $181,240 were made on the 2006 contract. At the time they were issued, the District's 2001 COPs were insured and rated AAA by Standard & Poors. Dun & Bradstreet, based on audited financial statements and creditor input, also rates 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. The ISA's were signed in August 2004 and January 2006 with Citizen's Business Bank for the amounts of $10 and $6 million. The terms of the 2004 agreement are 4.5% for 20 years with semi - annual principal and interest payments of $381,774 due in February and August of each year. The terms of the 2006 agreement are 4.95% for 20 years with semi - annual principal and interest payments of $238,012 due in March and September of each year. The schedule above does not reflect a $165,671 interest free loan from the state Department of Water Resources used to facilitate the acquisition of a small mutual water company located within the District's boundaries. The District also has a $2 million line of credit with Citizen's Business Bank. The intended purpose for this credit line EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS is strictly as a source for contingent financing. The current borrowing rate on the line is 8.25 %; no funds have been drawn against the line to date. New Regulation Water In September 2007, the California Department of Public Health established a maximum contaminant level (MCL) for Perchlorate of 6 parts per billion (PPB). This MCI- has an effective date of October 18, 2007 at which time management anticipates two of the District wells will exceed the MCL and will be temporarily turned off. Mitigation measures being considered to lower Perchlorate levels include blending with water from other wells, and ion exchange treatment at the wellhead. The District also continues to monitor proposed regulation related to Radon, issued by the EPA in May 2000. Many water agencies have challenged some of the findings in the proposal, and the District is sponsoring proposed changes that would ease treatment requirements. Wastewater In May 2006, the California State Water Resources Control Board issued order no. 2006 -0003 affecting all public agencies maintaining more than 1 mile of wastewater collection pipeline within the State of California. The order lists requirements to help agencies avoid sewer spills that could pollute surface and ground waters. Some requirements of the plan include: inspect all wastewater pipelines with video cameras to identify potential sources for spills -11- maintain a Capital Improvement Plan that assures adequate pipeline capacity public education and outreach to prevent the discharge of fats /oils /grease (FOG) into wastewater pipelines The Districts 2007 -2008 budget includes additional staff and equipment to begin implementation of the video inspections at an estimated cost of $250,000. The cost effect to fully implement the order has not been determined. Rate Increases In November 2007, the District board of directors will consider water and sewer division rate increases to provide funds for significant capital construction activities expected to continue through fiscal year 2007 -2008 and beyond. The proposed increase in water rates will be approximately 11 %, and the proposed sewer rates will reflect an increase of approximately 9 %. EAST VALLEY WATER DISTRICT STATEMENTS OF NET ASSETS JUNE 30, 2007 AND 2006 ASSETS Current Assets: Cash in bank and on hand Investment in Local Agency Investment Fund Investment in debt securities Accounts receivable, net Interest receivable Other receivables Inventory Prepaid expenses Total Current Assets Restricted Assets: Cash Investments Total Restricted Assets Noncurrent Assets: Capital Assets: Utility plant: in service Less accumulated depreciation Construction in progress Assessments receivable Deferred charges Total Noncurrent Assets Total Assets 2007 $ 1,223,497 3,378,575 4,165,499 1,546,505 174,427 135,957 1,000,211 114,446 11,739,117 11,162,637 1,398,172 12,560,809 126,757,944 (39,741,878) 87,016,066 9,454,796 96,470,862 149,636 252,529 96,873,027 $121,172,953 2006 $ 1,162,238 3,358,843 3,799,832 1,359,309 238,849 280,241 936,991 240,404 11,376,707 5,126,418 10,047,134 15,173,552 114,503,687 (37,191,824) 77,311,863 13,121,419 90,433,282 71,050 290,484 90,794,816 $117,345,075 The accompanying notes are an integral part of these financial statements. -12- LIABILITIES Current Liabilities: Accounts payable: - trade Accounts payable: - other Accounts payable - FEMA Retentions payable Accrued payroll and benefits Accrued interest payable Long term debt due within one year Total Current Liabilities Liabilities Payable From Restricted Assets: Customer service: deposits Construction deposits Noncurrent Liabilities: Long term debt dues after one year Less: Deferred amount on refunding of Certificates of Participation Total Noncurrent Liabilities Total Liabilities NET ASSETS Invested in capital assets Unrestricted Total Net Assets 2007 $ 1,839,260 228 696,387 277,990 1,781,156 4,595,021 1,592,069 308,766 1,900,835 23,241,630 Exhibit "A" 2006 $ 2,137,166 17,213 90,899 566,375 291,632 1,946,648 5,049,933 1,508,630 276,266 1,784, 896 25,026,166 (408,635) (485,115) 22,832,995 24,541,051 29,328,851 31,375,880 81,696,386 76,414,981 10,147,716 9,554,214 $ 91,844,102 $ 85,969,195 The accompanying notes are an integral part of these financial statements. -13- EAST VALLEY WATER DISTRICT STATEMENTS OF REVENUES EXPENSES AND CHANGES IN NET ASSETS FOR THE YEARS ENDED JUNE 30 2007 AND 2006 OPERATING REVENUES: Water sales Sewer charges Other chargers OPERATING EXPENSES: Water Department: Source of supply Pumping Treatment Transmission and distribution Customer accounts Sewer Department: Wastewater collection Treatment Administration and general Depreciation Total Operating Expenses Operating Income 2007 $ 13,111,339 8,139,600 726,890 21,977,829 390,124 3,451,376 626,770 766,082 403,493 5,637,845 377,919 5,607,172 5,985,091 5,311,038 2,814,830 8,125,868 19,748,804 2,229,025 2006 $ 11,807,046 7,733,908 581,136 20,122,090 639,948 2,987,709 381,846 695,088 397,014 5,101,605 336,171 5,473,390 5,809,561 5,476,665 2,653,803 8,130,468 19,041,634 1,080,456 The accompanying notes are an integral part of these financial statements. -14- NONOPERATING REVENUES (EXPENSE): Investment income Other income Gain (loss) on disposal of assets Interest expense Amortization Income Before Contributions CONTRIBUTIONS: Utility plant dedicated Capacity charges Grants CHANGE IN NET ASSETS NET ASSETS - BEGINNING OF YEAR NET ASSETS - END OF YEAR 2007 $ 539,720 140,474 28,142 (554,914) (37,955) 115,467 Exhibit "B" 2006 $ 341,237 51,247 1,907,327 (620,130) (37,956) 1,641,725 2,344,492 2,722,181 2,685,398 649,928 195,089 3,530,415 5,874,907 2,340,630 613,573 77,886 3,032,089 5,754,270 85,969,195 80,214,925 $ 91,844,102 $ 85,969,195 The accompanying notes are an integral part of these financial statements. 0 -15- EAST VALLEY WATER DISTRICT STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2007 AND 2006 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers Cash payments to employees for services Cash payments to suppliers for goods and services Cash from other sources NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Grant funds received Contributed capital Proceeds from capital debt Principal paid on capital debt Interest paid on capital debt Acquisition and construction of capital assets Net proceeds on retired assets NET CASH PROVIDED BY (USED FOR) CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Interest received from investments Acquisition of investments in debt securities Proceeds from sales of investments in debt securities Loan collections from AVAD property owners NET CASH USED FOR INVESTING ACTIVITIES NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR 2007 011911 $ 21,906,572 $ 20,338,327 (4,219,455) (4,055,645) (12,819,660) (11,760,261) 173,877 21,717 5,041,334 4,544,138 191,192 649,928 (1,946,965) (1,206,434) (6,149,874) 95,258 593,879 613,939 6,169,052 (1,682,589) (991,303) (9,456,080) 3,876,440 (8,366,895) (876,662) 1,123,807 (11,130,482) 19,430,254 19,192 9,442,771 6,1 17,210 616,013 (16,244,490) 12,133,006 31,881 (3,463,590) 203,886 9,647,499 9,443,613 $ 15,764,709 The accompanying notes are an integral part of these financial statements. - -16- $ 9,647,499 2007 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED 13Y OPERATING ACTIVITIES: Operating income $ 2,229,025 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation Other non - operating income CHANGES IN ASSETS AND LIABILITIES: (Increase) decrease in accounts receivable (Increase) decrease in other receivables (Increase) decrease in inventory (Increase) decrease in prepaid expenses Increase (decrease) in trade accounts payable Increase (decrease) in accrued salaries and vacation pay Increase (decrease) in customer and other deposits Increase (decrease) in developers' deposits Increase (decrease) in deferred revenue NET CASH PROVIDED BY OPERATING ACTIVITIES RECONCILIATION TO STATEMENT OF NET ASSETS: 2,814,830 140,474 (187,196) 33,403 (63,220) 125,958 (297,891) 130,012 83,439 32,500 Exhibit "C" 2006 $ 1,080,456 2,653,803 51,247 (56,409) (29,530) 89,563 29,831 412,580 39,951 186,630 146,016 (60,000) $ 5,041,334 $ 4,544,138 Ending cash and cash equivalents are presented on the accompanying statements of net assets as follows: Current Assets: Cash in bank and on hand Investment in Local Agency Restricted Assets: Cash Investment Fund $ 1,223,497 $ 1,162,238 3,378,575 3,358,843 11,162,637 5,126,418 $ 15,764,709 $ 9,647,499 NON -CASH INVESTING, CAPITAL AND NONCAPITAL FINANCING ACTIVITIES: Utility Plant contributed by developers $ 2,685,398 $ 2,340,630 Fair value adjustment to debt securities $ 16,477 $ 17,479 DWR loan receivable and payable adjustment $ - $ 19,614 The accompanying notes are an integral part of these financial statements. -17- THIS PAGE LEFT INTENTIONALLY BLANK m EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 NOTE 1: NATURE OF ORGANIZATION AND SUMMARY OF ACCOUNTING POLICIES Nature of Organization East Valley Water District is a special district 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 sewer system was needed to replace the septic tanks used at the time. Citizens voted to give East Valley Water District responsibility for that service. The District encompasses an area of approximately 25 square miles and provides water and sewer service to the City of Highland, parts of the City of San Bernardino and unincorporated parts of the County of San Bernardino, California. Reporting Entity The criteria used in determining the scope of the reporting entity are based on the provisions of Governmental Accounting Standards Board (GASB) Statement 14. The East Valley Water District is the primary government unit. The District is organized and existing under Division 12 of the water code of the State of California. The purposes of the District are to finance, construct, operate and maintain a water distribution and sewer collection system to serve properties within the District's boundaries. The East Valley Public Facilities Corporation (the "Corporation ") is a component unit. A component unit is an entity which is financially accountable to the primary government unit, either because the primary government unit 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 unit. The Corporation was incorporated October 1986, pursuant to the nonprofit public benefit corporation law of the State of California to provide financial assistance to the District by acquiring and constructing various public improvements, and by acquiring land and related facilities for the use, benefit and enjoyment of the public. The Corporation has been accounted for as a "blended" component unit of the District. Despite being legally separate, this entity is so intertwined with the District that it is, in substance, part of the District's operations. Accordingly, the balances and transactions of this component unit are reported within the financial records of the District. However, interagency transactions between the District and the Corporation have been eliminated for financial reporting purposes. The following specific criteria were used in determining that the Corporation was a blended component unit: The members of the Board of Directors also act as the governing body of the Corporation. The Corporation is managed by employees of the District -19- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30 2007 AND 2006 NOTE 1: NATURE OF ORGANIZATION AND SUMMARY OF ACCOUNTING POLICIES (continued) Basis of Accounting The District uses the economic resources measurement focus and the accrual basis of accounting. Accordingly, revenues are recognized when they are earned and expenses are recorded when the liability is incurred, with the following exception: a portion of June water usage is not accrued, and is therefore not recognized as revenue until the following year; this is due to the large number of district services which require an almost continuous billing cycle. This exception is consistent with prior years. The District follows all applicable GASB pronouncements, and all Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions and Accounting Research Bulletins (ARB) issued on or before November 30, 1989 unless they conflict with or contradict GASB pronouncements. The District applies only GASB pronouncements issued after November 30, 1989. On July 1, 2000, the District adopted the provisions of Governmental Accounting Standards Board Statement No. 34 "Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments." Statement 34 established standards for external financial reporting for all state and local governmental entities, which includes a statement of net assets, a statement of revenues, expenses, and changes in net assets, and a statement of cash flows. It requires the classification of net assets into three components — invested in capital assets, net of related debt; restricted; and unrestricted. These classifications are defined as follows: Invested in capital assets, net of related debt — This component of net assets consists of capital assets, including restricted capital assets, net of accumulated depreciation reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are significant unspent related debt proceeds at year -end, the portion of the debt attributable to the unspent proceeds are not included in the calculation of invested in capital assets, net of related debt. Rather, that portion of the debt is included in the same net assets component as the unspent proceeds. Restricted — This component of net assets consists of constraints placed on net asset use through external constraints imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation. Unrestricted net assets — This component of net assets consists of net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt." -20- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30 2007 AND 2006 NOTE 1: NATURE OF ORGANIZATION AND SUMMARY OF ACCOUNTING POLICIES (continued) On July 1, 2000, the District also adopted the provisions of Governmental Accounting Standards Board Statement No. 33 Accounting and Financial Reporting for Nonexchange Transactions. This statement prescribes methods for recognizing revenue and related assets on transactions in which the District receives value without having to give equal value in exchange. Examples are grants, developer fees, and property taxes. Inventor_ Valuation Inventories are valued at cost using the average -cost method. Capitalization and DePreciation Assets purchased or constructed by the District are recorded at cost. Assets contributed to the District are recorded at estimated cost. The estimated cost, determined by the District's engineer, is the amount the District would have to pay for construction of comparable facilities. Depreciation is computed using the straight -line method over the estimated useful lives of the various assets. Water canals, water and sewer 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. Bond discount and incidental bond expenses are amortized over the life of the bonds based on the bond principal outstanding. 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 Assets. Unexpended COP proceeds are set aside for capital improvements, District deposits into COP 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. Cash and Equivalents For purposes of the statement of cash flows, cash represents demand deposits held in financial institutions or in cash management pools where funds can be added or withdrawn at any time without prior notice or penalty and cash equivalents are highly liquid investments with a maturity of three months or less from the date of purchase. -21- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30 2007 AND 2006 NOTE 1: NATURE OF ORGANIZATION AND SUMMARY OF ACCOUNTING POLICIES (continued) Investments The District has adopted the provisions for GASBS No. 31, Accounting and Financial Reporting for Certain Investments and External Pools, which require governmental entities to report certain investments at fair value in the statement of net assets and recognize the corresponding change in the fair value of investments in the year in which the change occurred. In accordance with GASBS No. 31, the District has adjusted certain investments to fair value. Investments are included within the financial statement classifications of Investment in Local Agency Investment Fund and Investment in debt securities. 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 and wastewater collection to its customers. Non - operating revenues are those derived from the investment of cash reserves and from the disposal of excess property, and also 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. Use of Restricted Resources The District uses restricted resources, prior to using unrestricted resources, to pay expenditures meeting the criteria imposed on the use of restricted resources by a third party. 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. -22- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 NOTE 2: UTILITY PLANT A summary of changes in utility plant for the years ended June 30, 2007 and 2006 follows: June 30. 2007 Sewer Land and easements Balance - - Balance Water July 1, 2006 Additions Retirements June 30, 2007 Land and easements $ 2,072,351 $ 233,288 $ - $ 2,305,639 Intangible plant 20,954 - - 20,954 Water stock and rights 1,064,855 - - 1,064,855 Source of supply plant 22,465,853 1,181,410 - 23,647,263 Pumping plant 6,844,547 1,007,256 - 7,851,803 Treatment plant 9,235,982 8,569 - 9,244,551 Transmission and distribution plant 45,072,917 9,270,869 88,074 54,255,712 General plant 3,817,298 315,779 104,922 4,028,155 90,594,757 12,017,171 192,996 102,418,932 Sewer Land and easements 29,215 - - 29,215 Collection plant 20,940,623 451,159 50,040 21,341,742 General plant 2,939,092 117,819 88,856 2,968,055 23,908,930 568,978 138,896 24,339,012 Total $114,503,687 $12,586,149 $ 331,892 $126,757,944 -23- NOTE 2: June 30, 2006 Water EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30 2007 AND 2006 UTILITY PLANT (continued) Land and easements Intangible plant Water stock and rights Source of supply plant Pumping plant Treatment plant Transmission and distribution plant General plant Sewer Land and easements Collection plant General plant Total Balance July 1, 2005 Additions Retirements $ 2,082,678 20,954 1,064,855 22,244,120 6,753,309 9,235,982 43,052,665 3,689,610 88,144,173 29,215 20,763,240 2,850,799 23,643,254 275,332 91,238 2,039,748 166,427 2,572,745 177,383 127,032 304,415 $ 10,327 53,599 19,496 38,739 122,161 38,739 38,739 Balance June 30, 2006 $ 2,072,351 20,954 1,064,855 22,465,853 6,844,547 9,235,982 45,072,917 3,817,298 90,594,757 29,215 20,940,623 2,939,092 23,908,930 $111,787,427 $ 2,877,160 $ 160,900 $114,503,687 NOTE 3: CASH AND INVESTMENTS Cash and investments as of June 30, 2007 and 2006 are classified in the accompanying financial statements as follows: Statement of Net Assets: Current Assets: Cash in bank and on hand Cash in Local Agency Investment Fund Investment in debt securities Restricted Asserts: Cash Investments Total Cash and Investments 2007 $ 1,223,497 3,378,575 4,165,499 8,767,571 11,162,637 1,398,172 12,560,809 $ 21,328,380 2006 $ 1,162,238 3,358,843 3,799,832 8,320,913 5,126,418 10,047,134 15,173, 552 $ 23,494,465 -24- 0 EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 NOTE 3: CASH AND INVESTMENTS (continued) Cash and investments as of June 30, 2007 and 2006 consist of the following: 2007 2006 Cash on hand $ 1,750 $ 1,750 Deposits with financial institutions 474,441 267,840 Money market accounts with financial institutions 10,009,108 4,234,170 Investments in LAIF 5,279,410 5,143,739 Investment in debt securities 5,563,671 13,846,966 $ 21,328,380 $ 23,494,465 Investments Authorized by the California Government Code and the District's 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 Agency's investment policy that address interest rate risk, and concentration of credit risk. Authorized Investment Bonds & Certificates of Participation issued by EVWD U.S. Treasury Bills, Notes or Bonds State Registered Warrants, Notes or Bonds Notes & Bonds of other Local California Agencies U.S. Agencies Negotiable Certificates of Deposits Money Market Mutual Funds & Mutual Funds Collateralized Bank Deposits Local Agency Investment. Fund (LAIF) Maximum Authorized Required Maturity limit ( %) Rating 5 years None None 5 years None None 5 years None None 5 years None None 5 years None None 5 years 30% None 5 years 15% 2 -AAA 5 years None None N/A None None The California Local Agency Investment Fund (LAIF) is a special fund of the California State Treasury through which local governments may pool investments. Investments in LAIF are highly liquid as deposits can be converted to cash within 24 hours without loss of interest. At June 30, 2007, 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 through the use of reverse repurchase agreements. -25- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30 2007 AND 2006 NOTE 3: CASH AND INVESTMENTS (continued) Disclosure Relating to Interest Rate Risk Interest rate risk is the risk that a change in the market rate will adversely affect the fair value of an investment. Generally, the longer the maturity of the investment, the greater the sensitivity to change in fair value due to fluctuation in market interest rates. One of the ways the District minimizes their exposure to this type of risk is by investing in investments with laddered maturity dates. As of June 30, 2007, the District had the following investments and maturities: Investment Type LAI F Farmer Mac Federal Farm Credit Bank Federal Home Loan Bank US Treasury Bill US Treasury Note Fair Value $ 5,279,410 349,711 49,953 3,421,232 297,455 1,445,320 Less Than 1 Year $ 5,279,410 349,711 49,953 2,996,536 297,455 1,247,624 1 - 2 Years 424,696 197.696 $ 10,843,081 • $ 10,220,689 $ 622,392 As of June 30, 2006, the District had the following investments and maturities: Less Than Investment Type _ Fair Value 1 Year LAIF $ 5,143,739 $ 5,143,739 Federal F=arm Credit Bank 198,313 149,031 Federal Home Loan Bank 10,645,433 10,100,182 US Treasury Bill 897,541 897,541 US Treasury Note 2,105,679 2,007,124 1 - 2 Years 49,282 545,251 98.555 $ 18,990,705 $ 18,297,617 $ 693,088 -26- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 NOTE 3: CASH AND INVESTMENTS (continued) Disclosure Relating to Credit Risk Generally, credit risk is the risk that an 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 raising organization. Presented below is the minimum required rating by (where applicable) the California Code, the ,Agency's investment policy and the actual rating as of year ended for each investment type. Investment Type LAIF Farmer Mac Federal Farm Credit Bank Federal Home Loan Bank US Treasury Bill US Treasury Note TIJHI 'iAwl't Amount Legal Rate Actual Rate $ 5,279,410 N/A N/A 349,711 N/A N/A 49,953 N/A AAA 3,421,232 N/A AAA 297,455 N/A AAA 1,445,320 N/A AAA 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, 2007 and 2006, the following investments exceeded 5% of the District's total investments: In vestment Type LAIF Federal Home Loan Bank U :) Treasury Note Investment Type LAIF Federal Home Loan Bank US Treasury Note! Percentage Invested 2007 48.69% 31.55% 13.33% Percentage Invested 2006 -27- 27.08% 56.05% 11.08% EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 NOTE 3: CASH AND INVESTMENTS (continued) Disclosure Related to 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 risk for investments is the risk that in the event of the failure of the counterparty 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 market value of pledged securities must equal at least 110 percent of the District's deposits. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150 percent of a public entity's total deposits. The District may waive collateral requirements for deposits which are fully insured by Federal depository insurance. As of June 30, 2007 and 2006, $411,939 and $906,897 respectively, of the District's deposits with financial institutions were in excess of federal depository insurance limits. 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, 2007, the carrying amount (at amortized cost) of the pool was $65,786,597,418 and the estimated fair value of the pool was $E35,756,665,933. The District's proportionate share of the pool's market value (as determined by LAIF) as of June 30, 2007, was $5,277,008. 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. 0 _28_ EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30 2007 AND 2006 NOTE 4: LONG -TERM DEBT Long -term debt reflected on the accompanying Statement of Net Assets includes the following: Arroyo Verde Assessment District Construction Loan - Interest at 0 %; maturities through 2031 1996 Refunding Certificates of Participation - Interest from 3.25% to E1.40 %; maturities through 2009 2001 Certificates of Participation - Interest from 4.25% to 5.00 %; maturities through 2020 2004 Project Installment Sale Note - Interest 4.50 %; maturities through 2024 2006 Project Installment Sale Note - Interest 4.95 %; maturities through 2026 Less: Issuance discounts Add: Issuance premiums Less Current Portion: DWR - Arroyo Verde Construction Loan 1996 Certificates 2001 Certificates 2004 Installment Note 2006 Installment Note Discounts and premium -29- June 30, 2007 $ 158,909 1,730,000 MOM Me 9,180,054 5,818,760 24,982,723 (10,371) 50,434 June 30, 2006 $ 165,671 2,490, 000 8,755,000 9,519,017 6,000,000 26,929,688 (14,032) 57,158 25,022,786 26,972,814 3,381 540,000 690,000 354,388 190,322 1,778,091 3,065 1,781,156 $ 23,241,630 3,381 760,000 660,000 338,963 181,240 1,943,584 3,064 1,946,648 $ 25,026,166 EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30 2007 AND 2006 NOTE 4: LONG -TERM DEBT (continued) The schedule below summarizes changes in long -term debt principal during the years ended June 30, 2007 and 2006. June 30, 2007 July 1, 2006 Additions Payments June 30, 2007 Arroyo Verde Assessment District Construction Loan $ 1996 COPS 2001 COPS 2004 Project Installment Sale Note 2006 Project Installment 165,671 $ - $ 6,762 2,490,000 - 760,000 8,755,000 - 660,000 9,519,017 - 338,963 $ 158,909 1,730,000 8,095,000 9,180,054 Sale Note 6,000,000 - 181,240 5,818,760 $ 26,929,688 $ $ 1,946,965 $ 24,982,723 June 30, 2006 July 1, 2005 Additions Arroyo Verde Assessment District Construction Loan $ 149,438 $ 19,614 1996 COPS 3,210,000 - 2001 COPS 9,390,000 2004 Project Installment Sale Note 9,843,226 2006 Project Installment Payments June 30, 2006 $ 3,381 720,000 635,000 324,209 $ 165,671 2,490,000 8,755,000 9,519,017 Sale Note - 6,000,000 6,000,000 $ 22,592,664 $ 6,019,614 $ 1,682,590 $ 26,929,688 -30- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 NOTE 4: LONG -TERM DEBT (continued) The aggregate debt service requirements to maturity for all long -term debt as of June 30, 2007 and 2006 is as follows: June 30, 2007 Year Ending June 30. 2008 2009 2010 2011 2012 2013-2017 2018-2022 2023-2027 2028-2032 June 30, 2006 Year Ending .June 30. 2007 2008 2009 2010 2011 2012-2016 2017-2021 2022-2026 2027-2031 Principal Interest $ 1,778,091 1,872,135 1,969,012 1,417,157 1,451,632 6,826,380 6,112,562 3,528,704 27,050 $ 24,982,723 $ 1,120,089 1,035,456 945,499 868,129 805,186 3,026,663 1,597,864 318,074 $ 9,716,960 Principal Interest $ 1,943,584 1,781,472 1,872,135 1,969,012 1,417,157 7,216,759 6,128,891 4,566,866 33,812 $ 26,929,688 $ 1,206,434 1,120,089 1,035,456 945,499 868,129 3,345,111 1,883,193 519,483 $ 10,923,394 Total $ 2,898,180 2,907,591 2,914,511 2,285,286 2,256,818 9,853,043 7,710,426 3,846,778 27,050 $ 34,699,683 Total $ 3,150,018 2,901,561 2,907,591 2,914,511 2,285,286 10,561,870 8,012,084 5,086,349 33,812 $ 37,853,082 The District calculates the amount of interest expense to capitalize based on the weighted average of costs for projects financed by borrowing. After netting capital interest costs against interest earnings on unexpended COP and 2004 and 2006 Project Installment Sale Note proceeds, the District capitalized $175,153 interest for the year ended June 30, 2007 and $95,556 for the year ended June 30; 2006. -31- NOTE 4: Security EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30 2007 AND 2006 LONG -TERM DEBT (continued) Security for debt is as follows: DEBT Certificates of Participation (Series 1996 Certificates and 2001 Certificates) and 2004 and 2006 Project Installment Sale. SECURITY The District is required to maintain and encumber net revenues, as defined by the Certificates of Participation's Trust Agreement and 2004 and 2006 Project Installment Sale agreements of at least 110% of the District's annual debt service (principal and interest). At June 30, 2007 net water revenues represented 169% of the annual debt service. The District has an unsecured $2,000,000 line of credit with Citizens Business Bank with interest at the bank's prime rate. At June 30, 2007 and 2006 no amounts were borrowed against this line. NOTE 5: DEFEASED DEBT 1996 Refunding On May 14, 1996, the District issued 1996 Refunding Certificates of Participation of $8,140,000 with interest rates ranging from 3.25% to 5.40% to advance refund outstanding certificates of participation issued in 1986 (Highland system), 1989 (water facility) and 1989 (Highland system) totaling $8,570,000. The net proceeds of $7,868,990 (after discount of $51,249 and payment of underwriting fetes, insurance and other issue costs) plus an additional $1,365,551 released from the trust agreement relating to the 1986, 1989 (water facility) and 1989 (Highland system) certificates of participation were used to purchase U.S. government securities. The securities were deposited in an irrevocable trust with an escrow agent until December 1, 1999 on which date they were sold and the proceeds used to redeem all outstanding 1986 and 1989 Certificates. The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $439,410. This difference, reported in the accompanying financial statements as a deduction from certificates of participation payable, is being charged as a component of interest expense through the year 2009 using the straight -line method of amortization. The District in effect reduced its aggregate debt service cash flow by $755,433 over the term of the new certificates and obtained an economic gain (difference between the present values of the old and new debt service payments) of $203,438. -32- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 NOTE 5: DEFEASED DEBT (continued) 2001 Refunding On April 26, 2001, the District issued $12,000,000 of Series 2001 Certificates of Participation (COPS). The new COPS were issued to finance the construction of a new 4 million gallon reservoir ($5,580,000), and for advance refunding $6,165,000 of then outstanding 1994 COPS ($6,420,000). The refunding portion of the 2001 COPS carry interest rates from 4.250% to 4.625% and will be repaid in various principal increments with the final payment due on December 1, 2014. The refunded 1994 COPS carried interest rates from 5.500% to 6.600% and also were due in various principal increments with the final payment due on December 1, 2014. The refunding portion of the 2001 COPS were issued at a premium of $49,167, and after paying issuance costs and insurance of $176,575, the net proceeds were $6,292,592. The net proceeds, plus $302,391 held in reserve for the 1994 COPS were used to purchase U.S. Government securities which were deposited in an irrevocable trust with an escrow agent to provide debt service on the 1994 COPS until December 1, 2003 on which date they were redeemed. The advance refunding met the requirements of an in- substance defeasance; accordingly, the 1994 COPS are no longer reflected as a liability on the accompanying financial statements. The advance refunding resulted in a difference between the reacquisition price and the carrying amount of the old debt of $601,753. This difference, reported in the accompanying financial statements as a deduction from long -term debt payable, is being charged to operations through the year 2015 using the straight -line method of amortization. The District completed the refunding to decrease total debt :service over the next 13 years by $574,329 and to obtain an economic gain (difference between the present values of the old and new debt service payments) of $272,083. NOTE 6: DEFINED BENEFIT PENSION PLAN (PERS) East Valley Water District contributes to the California Public Employees Retirement System (PERS), an agent multiple- employer public employee defined benefit pension plan. PERS provides retirement, disability benefits, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Copies of PERS' annual financial report may be obtained from its executive office at 400 P Street, Sacramento, California 95814. All full -time District employees are eligible to participate in PERS with benefits vesting after five years of service. District employees who retire at age 55 are entitled to an annual retirement benefit, payable monthly for life, in increasing percentage increments up to 2.7% of their average full -time monthly pay rate for the highest 12 consecutive months for each year of credited services. Participants are required to contribute 8% of their annual covered salary. The District makes the contributions required of District employees on their behalf and for their account. For the year ended June 30, 2007, the amount contributed by the District on behalf of the employees was $601,748. Benefit provisions and all other requirements are established by state statute and District ordinance. -33- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 NOTE 6: DEFINED BENEFIT PENSION PLAN (PERS) (continued) Under GASB 27, an employer reports an annual pension cost (APC) equal to the annual required contribution (ARC) plus an adjustment for the cumulative difference between the APC and the employer's actual plan contribution for the year. The cumulative difference is called the net pension obligation (NPO). The ARC for the period July 1, 2006 to June 30, 2007 has been determined by an actuarial valuation of the plan as of June 30, 2004: The contribution rate indicated for the period is 14.61% of covered payroll. In order to calculate the dollar value of the ARC for inclusion in financial statements prepared as of June 30, 2007, this contribution rate would be multiplied by the payroll of covered employees that was actually paid during the period July 1, 2006 to June 30, 2007. A summary of principal assumptions and methods used to determine the ARC is shown below. Valuation Date Actuarial Cost Method Amortization Method Average Remaining Period Asset Valuation Method Actuarial Assumptions: Investment Rate of Return Projected Salary Increases Inflation Payroll Growth Individual Salary Growth June 30, 2004 Entry Age Actuarial Cost Method Level Percentage of Payroll 14 Years as of the Valuation Date 15 Year Smoothed Market 7.75% (net of administrative expenses) 3.25% to 14.45% depending on Age, Service, and type of employment 3.00% 3.25% A merit scale varying by duration of employment coupled with an assumed annual inflation growth of 3.00% and an annual production growth of 0.25% Initial plan unfunded liabilities are amortized over a closed period equal to the average amortization period at the plan's date of entry into CalPERS risk pool. Subsequent plan amendments are amortized as a level percentage of pay over a closed 20 -year period. Gains and losses that occur in the operation of the risk pool are amortized over a rolling 30 year period. If the plan's accrued liability exceeds the actuarial value of plan asset, then the amortization payment on the total unfunded liability may not be lower than the payment calculated over a 30 year amortization period. Assembly Bill 1974, which added Sections 20840 -20842 to the California Government Code allowed PERS to create risk pools and mandate public agency participation in those pools. Commencing with the valuation of June 30, 2003, mandatory pooling was established for plans with less than 100 active members. As a result, the East Valley Water District was required to participate in a risk pool of other Agencies /Districts with less than 100 employees. The valuation report as of June 30, 2004, contained two sections: 1) the specific information of the plan including the development of the pooled contribution rate, and 2) the report of the Risk Pool Actuarial Valuation as of June 30, 2004. At the time of joining a risk pool (valuation of June 30, 2003), a side fund was created to account for the difference between the funded status of the pool and funded status of the District's plan. The side fund for the District's plan as of the June 30, 2004 valuation was a negative $1,373,492. 0 -34- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 NOTE 6: DEFINED BENEFIT PENSION PLAN (PERS) (continued) The side fund will be credited, on an annual basis, with the actuarial investment return assumption. This assumption is currently 7.75 %. The negative side fund will cause the District's required employer contribution rate to be increased by the Amortization of the side fund. In the absence of subsequent contract amendments or funding changes, the side fund will disappear at the end of the amortization period. The amortization period remaining as of June 30, 2004, was 10 years. As of the valuation report of June 30, 2004, the stand -alone actuarial valuation is no longer provided by the California Public Employees' Retirement System. Risk Pool Annual UL as a Valuation Accrued Actuarial Unfunded Funded Covered % of Date _ _ Liabilities Assets Liabilities (UL) Ratio Payroll Payroll June 30, 2003 $515,421,442 $456,062,164 June 30, 2004 $681,517,006 $580,960,891 June 30, 2005 $872,346,612 $729,556,809 Three Year Trend Information Fiscal Year Annual Pension Cost (APC) $ 59,359,278 88.5% $100,556,115 85.2% $142,789,803 83.6% Percentage of APC Contributed June 30, 2005 $ 504,014 100% June 30, 2006 $ 635,092 100% June 30, 2007 $ 601,748 100% -35- 0 $120,692,360 49.2% $160,107,449 62.8% $203,995,039 70.0% Net Pension Obligation I EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30 2007 AND 2006 NOTE 7: OPERATING LEASE The District has entered into a lease agreement for temporary office space. The lease is for a period of twenty -one months at a monthly rental rate of $8,000 commencing February 1, 2004 and ending October 31, 2005. The lease includes an option to extend the lease for three additional six month periods, running through April 30, 2007, On September 1, 2004, the lease was amended to include an additional suite. 'The amended lease required monthly payments of $9,300, beginning September 1, 2004. On July 28, 2005, the lease was amended increasing the monthly rental payments to $10,304 commencing with the first option period of November 1, 2005. In addition the amendment granted four additional option periods of six months each, with the first additional option period effective May 2007. The amended extended lease will end April 30, 2009. On March 29, 2007, the lease was amended a third time. This third amendment increased the space leased to include Suite 19. The suites now included in the lease are Suites 12, 17, 18 and 19. The amendment increased the monthly rent by $1,500 per month, for a total monthly rental amount of $11,804 effective April 1, 2007 and continuing through the remaining term of the lease. Total rent expense under this operating lease for the year ended June 30, 2007 and 2006 was $127,748 and $119,632, respectively. Additionally, the District has entered into a lease agreement with the CIT Communications Finance Corporation for a telecommunications system. The lease is for a period of sixty months commencing May 15, 2004 and ending May 14, 2009. The lease requires monthly payments of $2,198 beginning May 15, 2004. Total rent expense under this operating lease was $30,773 for the year ended June 30, 2007 and $26,376 for the year ended June 30, 2006. Future minimum rental payments required for all operating leases are as follows: Year Ended June 2008 $ 168,024 2009 140,020 $ 308,044 -36- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 NOTE 8: COMMITMENTS Basin Water, Inc. - Awe reement #1 The District has entered into a 10 -year agreement for wellhead treatment with Basin Water, Inc. The agreement requires Basin Water to install and maintain treatment facilities at a District well that is contaminated by Nitrates. In exchange, the District will pay Basin Water $174 per acre foot (Per Acre Foot Treatment Fee) ($168 + 3.3% consumer price index allowed increase = $173.54) for treated water that meets a designated Quality Standard. This Acre Foot Treatment Fee is based upon the District's representation that it will pump, and deliver for processing and treatment, 800 acre feet of water per year (Base Quantity). If the District pumps less than the Base Quantity, the District is obliged to pay Basin Water $88 per acre -foot (Minimum Treatment Fee) for the difference between the Base Quantity and the amount of water actually delivered for treatment. If the District delivers, and Basin Water treats, more than the Base Quantity in any given year, the price per acre foot for each acre foot in excess of the Base Quantity is $125 (Additional Treatment Fee). The minimum amount (Minimum Treatment Fee) to be paid by the District for any year covered by the agreement is $70,400. Bain Water, Inc. - Agreement #2 The District entered into an agreement with Basin Water, Inc. for nitrate removal from Well 27. The agreement was signed in February 2005 but the term did not begin until all required permits were obtained. The term began in June 2007 and continues for one year with an option to extend for an additional year. The original contract price of $195 per acre foot as indexed by the consumer price index is $210 as of June 30, 2007. Purchase Commitment At June 30, 2007, the District was in escrow to purchase land with a sales price of $6,773,149. During the year ended June 30, 2007, $5,000 was deposited into the escrow as an initial deposit. Escrow closed on August 23, 2007. -37- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30 2007 AND 2006 NOTE 9: CONTINGENCIES The District has been included on a list of parties responsible for the clean up of a hazardous waste disposal site in Bakersfield, California. The District's relationship to the site was established in 1991 when the District was clearing contaminated soil from land it had purchased from the State of California. The contaminated soil was hauled to the site, and the site owners were paid by the District to properly dispose of the soil. In 2000, the State of California discovered that the site owners had abandoned the site and that none of the contaminants accepted there had actually been disposed of. The State then contacted all of the parties that had used the site, including the District, and informed them that they were now responsible for clean up of the hazardous waste. To date, the District's share of costs has totaled $25,325. The investigation by the State is in its preliminary stagers and current information is insufficient to allow management to estimate a reasonable range for the total clean up costs. Accordingly, no liability related to the clean up has been accrued in the accompanying financial statements. NOTE 10: JOINT VENTURE The District participates in a joint venture under a joint powers agreement (JPA) with the Special District Risk Management Authority (Authority). The Authority is a risk - pooling self- insurance authority created tinder the provisions of California Government Code Section 6500 et. sec. The Authority is governed by a board consisting of a representative from each member agency. The board controls the operations of the Authority including selection of management and approval of operating 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. 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. At June 30, 2007, the District participation in the self - insurance programs of the Authority was as follows: Personal Injury and Property Damage Liability Coverage - General Personal Injury and Property Damage Liability Coverage - Auto Public Officials and Employees Errors and Omissions Liability Employment Practices Liability 10,000,000 per occurrence / aggregate where applicable 10,000,000 per accident 10,000,000 per wrongful act / annual member aggregate 10,000,000 per wrongful employment practice I aggregate limits per member included with Public Officials and Employee Errors and Omissions Coverage XM Deductible $500 (property damage only) $1,000 none none up to $10,000 50% co- insurance from $10,000 to $50,000 none for amounts greater than $50,000 EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 NOTE 10: JOINT VENTURE (continued) Employee Benefits Liability 10,000,000 Employee Dishonesty Coverage Public Officials Personal Liability Automobile; Physical Damage Uninsured Motorist Bodily Injury Coverage Property Coverage Boiler and Machinery 500,000 10,000,000 750,000 per wrongful act / annual member aggregate per loss per occurrence / annual aggregate per Board Member replacement cost (stated value adjusted for depreciation) (on selected vehicles) per accident 350,000,000 replacement cost for scheduled property if replaced (if not replaced within two years, actual cash value basis) 100,000,000 replacement cost Deductible none none $ 500 $250/$500 or $500/$1,000 comprehensive ! collision (as elected per vehicle) none $2,000 $1,000 Condensed financial information of the Authority for the year ended June 30, 2006 is as follows: The financial information for the year ended June 30, 2007 is not yet available. Total Assets $ 52 454 396 Total Liabilities Total Net Assets Total Liabilities and Net Assets Total Revenues Total E= xpenses Change in Net Assets 0 -39- $ 33,850,371 18,604,025 $ 52,454,396 $ 24,464,075 23, 321,200 $ 1,142,875 EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 NOTE 11: RELATED ORGANIZATIONS The District has purchased a majority of the voting stock of two mutual water companies in Highland, California: the North Fork Water Company (North Fork) and City Creek Water Company (City Creek). The District's investment in these entities is reflected as Utility Plant on the accompanying financial statements because stock ownership entitles the District to take certain quantities of water and to use existing water distributions systems owned by these companies. Ownership in the North Fork Water Company also obligates the District to pay annual assessments that are based on the number of shares owned. Assessments paid to North Fork during the years ended June 30, 2007 and 2006 were $58,295 and $58,295, respectively. NOTE 12: POST - RETIREMENT MEDICAL HEALTH CARE BENEFITS In addition to the pension benefits described in Note 6, the District provides post- retirement medical benefits to eligible: employees who retire from the District. The benefits provide retired employees with the same; medical insurance coverage available to current employees. Pre - Medicare retirees, after attaining age 50 with 20 years service will receive paid medical benefits not to exceed $400 per month. Once the retiree becomes eligible for Medicare, the District is responsible for paying their portion of medical benefits in an amount not to exceed $80.80 per month. At June 30, 2007, ten retirees met these eligibility requirements. Expenditures for post- retirement medical health care benefits are recognized as the premiums are paid. Expenditures of $35,690 were incurred by the District for post- retirement medical health care benefits for the year ended June 30, 2007. NOTE 13: SUBSEQUENT EVENT Effective October 18, 2007, new state regulations setting a legal limit for the chemical perchlorate in public drinking water go into effect. The new regulations allow no more than six parts perchlorate per billion parts of tap water. Costs to comply with the new limit will be extensive to East Valley Water District. An estimate of the cost is not yet available. -40- Board of Directors East Valley Water District 3654 East Highland Avenue San Bernardino, California 92346 AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The information on pages 43 through 75 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. 12 ° , G! a,rn -Yv., q-) S eaJbi S 4 P October 16, 2007 MF1dBER5 pp/,F91CPD. ER NBLICAC CO cr ? EOCUBLCACUn: -ANTS ?CPS THE 4.C�4 ALLIANCE FOR CPA FIRMS CALIFORNIA SOC,ETI1 OF CERTIFIED PUBLIC ACCOUNTANTS VAN IRTO`NEP ^ 290NOPT)T'D STREET • SU1TE300 SANBEANAAD1110 Cm32411 41- (909) 889 -0871 0 (909) 824 -6736 • FAX (9091 8895361 Websae:.w,. ramscpa. net JAY H. ZERCHER, C.P.A. ROBERTS, MEMORY,C.P.A ' PHILLIP H. WALLER, C.P.A. BRENDAL. ODLE, C.P.A. TERRYP. SHEA, C.P.A. ROGERS, ANDERSON, MALODY & SCOTT, LLP KIRK A. FRANKS, C.P.A. MATTHEW B. WILSON, C.P.A. CERTIFIE'O FUSZIC ACCOUNTANTS LEENA SHANBHAG, C.P.A. NANCY O'RAFFERTY, C P.A. SCOTT W. MANNO, C.P.A. BRAD A. WELEBIR, C.P.A. Board of Directors East Valley Water District 3654 East Highland Avenue San Bernardino, California 92346 AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The information on pages 43 through 75 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. 12 ° , G! a,rn -Yv., q-) S eaJbi S 4 P October 16, 2007 MF1dBER5 pp/,F91CPD. ER NBLICAC CO cr ? EOCUBLCACUn: -ANTS ?CPS THE 4.C�4 ALLIANCE FOR CPA FIRMS CALIFORNIA SOC,ETI1 OF CERTIFIED PUBLIC ACCOUNTANTS VAN IRTO`NEP ^ 290NOPT)T'D STREET • SU1TE300 SANBEANAAD1110 Cm32411 41- (909) 889 -0871 0 (909) 824 -6736 • FAX (9091 8895361 Websae:.w,. ramscpa. net THIS PAGE LEFT INTENTIONALLY BLANK -42- Schedule One Page 1 of 3 EAST VALLEY WATER DISTRICT WATER DEPARTMENT STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS YEARS ENDED JUNE 30, 2007 AND 2006 OPERATING REVENUES: Water sales Bulk sales Connection charges Other water services Total Operating Revenues OPERATING EXPENSES: Source of Supply: Purchased water Supervision and labor Laboratory analysis Groundwater replenishment North Fork - assessments Supplies Maintenance Pumping: Supervision and labor Maintenance Fuel and power Supplies Water Treatment: Supervision and labor Outside services Supplies Transmission and Distribution: Supervision and labor Outside services Supplies -43- 2007 2006 $ 12,928,581 182,758 425,825 289,978 $ 11,681,350 125,696 266,817 304,573 13,827,142 12, 378,436 50,004 146,106 129,172 58,295 6,222 325 390,124 428,843 666,412 2,309,282 46,839 3,451,376 98,752 485,557 42,461 626,770 331,466 195,403 239,213 766,082 226,800 57,270 185,362 106,120 58,295 3,426 2,675 639,948 381,031 587,610 1,982,767 36,301 2,987,709 100,094 215,581 66,171 381,846 327,580 172,547 194,961 695,088 Schedule One Page 2 of 3 EAST VALLEY WATER DISTRICT WATER DEPARTMENT STATEMENTS OF REVENUES EXPENSES AND CHANGES IN NET ASSETS YEARS ENDED JUNE 30 2007 AND 2006 Operating Income 2,185,051 1,271,449 2007 2006 OPERATING EXPENSES (continued): Customer Accounts: Supervision and labor $ 291,730 $ 292,099 Uncollectible accounts 19,740 3,518 Supplies 82,453 73,707 Outside services 9,570 27,690 403,493 397,014 Administrative and General: Salaries and wages 1,146,294 1,060,456 Taxes and benefits 880,904 802,488 Utilities 82,656 78,024 Outside services 323,235 433,507 Legal and accounting 68,226 80,261 Director's fees 47,773 50,771 Insurance 425,055 586,877 Office supplies and expense 137,387 146,889 Meetings, seminars and supplies 162,679 139,390 Equipment maintenance and supplies 109,790 95,682 Vehicle and equipment 45,978 63,074 Regulatory fees 38,089 42,048 Disaster /emergency expense 17,021 5,223 Dues and subscriptions 57,253 65,493 General plant maintenance 96,975 92,425 Rent: 92,784 87,502 Federal representation 48,125 48,710 Bank service charges 31,570 26,025 Miscellaneous expenses 400 350 Election expense - 59,249 3,812,194 3,964,444 OPERATING EXPENSES BEFORE DEPRECIATION 9,450,039 9,066,049 Depreciation 2,192,052 2,040,938 Total Operating Expenses 11,642,091 11,106,987 Operating Income 2,185,051 1,271,449 Schedule One Page 3 of 3 EAST VALLEY WATER DISTRICT WATER DEPARTMENT STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS YEARS ENDED JUNE 30, 2007 AND 2006 NON - OPERATING REVENUE: Investment income Gain from disposition of fixed assets Miscellaneous Total Non - Operating Income NON - OPERATING EXPENSES: Interest expense Amortization - issuance costs Amortization expense - lease costs Total Non- Operating Expenses Income Before Contributions CONTRIBUTIONS: Utility plant dedicated Capacity charges Grant CHANGE_ IN NET ASSETS 0 -45- 2007 $ 323,256 15,855 106,269 445,380 554,914 35,280 2,675 592,869 2,037,562 1,737,873 516,619 195,089 2,449,581 2006 $ 208,893 1,245,794 14,144 1,468,831 620,130 35,280 2,676 658,086 2 „082,194 1,151,890 467,687 77,886 1,697,463 $ 4,487,143 $ 3,779,657 Schedule Two Page 1 of 2 EAST VALLEY WATER DISTRICT SEWER DEPARTMENT STATEMENTS OF REVENUES EXPENSES AND CHANGES IN NET ASSETS YEARS ENDED JUNE 30 2007 AND 2006 OPERATING REVENUES: Service charges Other sewer services, Total Operating Revenues OPERATING EXPENSES: Sewage Collection: Salaries and wages Uncollectible accounts Operating supplies; Repairs and maintenance Sewage Treatment .Administrative and General: Salaries and wages Taxes and benefits Utilities Outside services Legal and accounting Director's fees Insurance Office supplies and expense Meetings, serninars and travel Equipment maintenance and supplies Vehicle and equipment Regulatory fees Disaster /Emergency expense Dues and subscriptions General plant maintenance Rent Bank service charges Miscellaneous expense OPERATING EXPENSES BEFORE DEPRECIATION Depreciation Total Operating Expenses Operating Income (Loss) -46- 2007 $ 8,139,600 11,087 8,150,687 204,108 6,067 41,924 125,820 377,919 5,607,172 500,774 350,595 34,906 147,478 29,099 18,224 115,654 107,715 51,789 29,903 19,585 6,655 1.193 16,263 15,436 39,764 13,781 30 1,498,844 7,483,935 622,778 8,106,713 43.974 2006 $ 7,733,908 9,746 7,743,654 197,368 1,472 68,350 68,981 336,171 5,473,390 473,534 305,852 33,230 181,642 30,773 47,053 201,340 62,527 45,858 25,606 26,328 1,891 2,263 12,830 13,001 37.330 11.154 9 1,512,221 7,321, 782 612,865 7,934,647 (190,993) Schedule Two Page 2 of 2 EAST VALLEY WATER DISTRICT SEWER DEPARTMENT STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS YEARS ENDED JUNE 30, 2007 AND 2006 NON - OPERATING REVENUE (EXPENSES): Investment income Penalties and shut off charges Miscellaneous Gain (loss) on disposal of assets Income Before Contributions CONTRIBUTIONS: Utility plant dedicated Capacity charges CHANGE IN NETASSSETS -47- 2007 $ 216,464 34,219 (14) 12,287 262,956 2006 $ 132,344 37,246 (143) 661,533 830,980 306,930 639,987 947,525 133,309 1,080,834 1,188,740 145,886 1,334,626 $ 1,387,764 $ 1,974,613 EAST VALLEY WATER DISTRICT SCHEDULE OF UTILITY PLANT IN SERVICE - WATER JUNE 30, 2007 General Plant Land improvements ---- ------ ----------- - - - --- -Cost of Assets----------------------------- 58,688 Building Balance 90,700 Balance Office furniture and July 1, 2006 Additions Retirements June 30, 2007 equipment 1,403,736 Land and easements $ 2,072,351 $ 233,288 $ $ 2,305,639 Intangible plant 20,954 - 20,954 Water stock and rights 1,064,855 - 1,064,855 Source of supply plant: $ 192,996 $ 102,418,932 Wells, reservoirs and tanks 22,431,280 1,181,410 23,612,690 Well - Highland System 34,573 - 34,573 Pumping Plant: Hydro plant 59 1,091,641 - 1,091,641 Pumping plant 127 274,988 - 274,988 Treatment plant facility 9,235,982 8,569 9,244,551 Pumping plant - Highland 536,888 - 536,888 Pumping plants 4,941,030 1,007,256 5,948,286 Transmission and Distribution Plant: Pipelines and services - Highland System 4,112,741 - 4,112,741 Pipelines and services 36,052,927 8,893,265 88,074 44,858,118 Meters 3,491,688 302,533 - 3,794,221 Telemetry and control 353,738 - - 353,738 North Fork Canal 614,568 75,071 - 689,639 Reservoirs and tanks - Highland 447,255 - - 447,255 General Plant Land improvements 30,708 27,980 58,688 Building 614,923 90,700 705,623 Office furniture and equipment 1,403,736 11,874 - 1,415,610 Transportation and general equipment 1,767,931 185,225 104,922 1,848,234 Totals $ 90,594,757 $12,017,171 $ 192,996 $ 102,418,932 -48- Schedule Three Page 1 of 2 ------------------ - - - - -- Accumulated Depreciation---------------------- Balance Balance July 1, 2006 Additions Retirements June 30, 2007 Land and easements $ - $ - $ - $ - Intangible plant - - - - Water stock and rights - - - - Source: of supply plant: 14,550 2,727 17,277 Wells, reservoirs and tanks 4,426,953 491,220 - 4,918,173 Well - Highland System 20,294 886 - 21,180 Pumping Plant: 981,751 119,246 - 1,100,997 Hydro plant 59 382,075 21,832 - 403,907 Pumping plant 127 96,247 5,499 - 101,746 Treatment plant facility 2,010,500 216,145 - 2,226,645 Pumping plant - Highland 180,361 10,738 - 191,099 Pumping plants 1,611,741 128,216 - 1,739,957 Transmission and Distribution Plant: Pipelines and services - Highland System 1,314,428 82,254 - 1,396,682 Pipelines and services 11,183,156 808,159 42,677 11,948,638 Meters 1,424,209 110,806 - 1,535,015 Telemetry and control 280,755 29,193 - 309,948 North Fork Canal 151,762 13,042 - 164,804 Reservoirs and tanks - Highland 153,184 8,945 - 162,129 General Plant Land improvements 14,550 2,727 17,277 Building 378,559 18,832 397,391 Office furniture and equipment 981,751 119,246 - 1,100,997 Transportation and general equipment 1,423,458 124,312 104,922 1,442, 848 Totals $ 26,033,983 $2,192,052 $ 147,599 $ 28,078,436 .. EAST VALLEY WATER DISTRICT SCHEDULE OF UTILITY PLANT IN SERVICE - SEWER JUNE 30, 2007 Land and easements Collection Plant: Sewage pipelines and services General Plant: Building Office furniture and equipment Transportation and general equipment Totals ---- ---- ---------------- --- - - - - -- --Cost of Balance July 1, 2006 Additions $ 29,215 $ - Retirements Balance June 30, 2007 $ 29,215 20,940,623 451,159 50,040 21,341,742 300,182 - - 300,182 1,114,855 11,873 - 1,126,728 1,524,055 105,946 88,856 1,541,145 $ 23,908,930 $ 568,978 $ 138,896 $ 24,339,012 -50- Schedule Three Page 2 of 2 -------------------- - - - - -- Accumulated Depreciation--------------------------- Balance Balance July 1, 2006 Additions Retirements June 30, 2007 Land and easements $ - $ - $ - $ - Collection Plant: Sewage pipelines and services 9,098,675 423,813 28,321 9,494,167 General Plant Building 175,799 11,554 187,353 Office furniture and equipment 744,901 100,401 - 845,302 Transportation and general equipment 1,138,466 87,010 88,856 1,136,620 Totals $ 11,157,841 $ 622,778 $ 117,177 $ 11,663,442 - -51- 0 Schedule Four Page 1 of 7 EAST VALLEY WATER DISTRICT UTILITY PLANT SCHEDULE OF ADDITIONS AND RETIREMENTS - WATER YEAR ENDED JUNE 30. 2007 ADDITIONS: Land and easements Plant 149 $ 54,449 t -and for hydro pneumatic pump station 111,722 Slope easement received in exchange for pipelines and services transferred to San Manuel 67,117 233,288 Source of Supply Plant: Well, Reservoirs and Tanks: Plant 132 -well (includes capitalized interest) 711,250 Plant 39 - rehabilitation of two tanks 341,437 Plant 1.49 - hydro tank 128,723 1,181,410 Pumping Plant: 'Treatment Plant Facility: Plant 134 - pump 3,749 3000 Gallon storage tank for sodium 4,820 8,569 Pumping Plants: Plant 12A - rehabilitation of well 76,820 Plant 25 - gate 1,290 Plant 34 - 10' Chainlink fence and gates 4,980 Plant 130 - Two (2) boosters 69,433 Plant 132 - column, tube and shaft 48,295 Plant 132 - motor 33,722 Plant 132 - concrete pad 15,841 Plant 13:2 - pump assembly 22,212 Plant 132 - DNH panel 15,263 Plant 132 - electrical 47,908 Plant 132 - telemetry 3,278 Plant 132 - 12" meter 3,711 -52- EAST VALLEY WATER DISTRICT UTILITY PLANT SCHEDULE OF ADDITIONS AND RETIREMENTS - WATER YEAR ENDED JUNE 30, 2007 ADDITIONS (continued): Pumping Plants (continued): Plant 136 - 6' chainlink fence and posts Plant 137 - generator receptical Plant 143 - 350 HP motor Plant 148 - razor ribbon Plant 149 - pump stations Plant 149 - electrical Plant 149 - SCADA Transmission and Distribution Plant: Pipeline and Services: Tract # 14757 Tract # 16607 Club View Villas Design /install 16" water line Vons - Greenspot/Church 36" Interzone pipeline - Sterling Ave. (includes capitalized interest) PM 16171 7649 Sterling Abandon water line - Pacific & Lapraix Connection -- Victoria & Marshall (San Manuel) Service - 7199 Boulder #D Service - San Bernardino airport Services - 27195 Baseline Road Services - City of Highland corporate yard 4" fire service - 27056 5th St. 4" fire service - 2114 Palm -53- Schedule Four Page 2 of 7 $ 2,850 5,866 18,336 790 351,592 249,567 35,502 1,007,256 263,930 99,606 4,603 47,096 94,550 8,182,913 30,305 15,449 60,198 44,261 7,889 19,082 5,362 8,499 2,576 6,946 8,893,265 EAST VALLEY WATER DISTRICT UTILITY PLANT SCHEDULE OF ADDITIONS AND RETIREMENTS - WATER YEAR ENDED JUNE 30, 2007 ADDITIONS (continued): Meters: Plant 12 - 12" meter 3" Compound meter with radio read Plant 12 - 12" meter Plant 11 - 10" meter Service replacements Meter replacement program North Fork Canal: 200' of 24 inch steel pipe General Plant: Land improvements: Future Plant 151 - fence installation Building: Plant 149 - building Roof mounted heat pump Office Furniture and Equipment: Replacement panels and chairs Dell Powe:redge 1850 server Three (3) Dell E310 computers for customer service Dell Optiplex GX520 Dell Optiplex GX520 Dell E510 computer Dell E510 computer Dell E520 computer Xerox Color Printer (net of rebate) Six (6) phones for Suite 19 Switch for phone connection to Suite 19 -54- Schedule Four Page 3 of 7 $ 3,134 2,491 2,600 2,700 20,718 270,890 302,533 75,071 75,071 27,980 27,980 86,900 3,800 90,700 2,237 2,734 1,058 650 650 507 506 486 415 1.277 1,354 11,874 EAST VALLEY WATER DISTRICT UTILITY PLANT SCHEDULE OF ADDITIONS AND RETIREMENTS - WATER YEAR ENDED JUNE 30, 2007 ADDITIONS (continued): Transportation and General Equipment: Safety cabinet with metal oily waste can Mighty Movers trailers (60kw Generac and Two (2) 8X 12 steel plates Generator hook -up in maintenance yard Air testing unit for production crew Plant 149 - generator 2006 GMC: Sierra 2006 GMC: Sierra 2006 GMC: Sierra 2007 GMC; Truck 2007 GMC; Truck 2007 GMC: Truck White tool box for truck #147 Weatherguard tool box for truck #232 Bobcat 225 generator for truck #223 Upgrade on vehicle #11 Total Additions 100kw cat & parts) -55- Schedule Four Page 4 of 7 $ 479 8,718 2,333 1,829 2,325 78,956 13,055 12,511 12,356 13,389 13,389 13,389 339 269 1,776 10,112 185,225 $ 12,017,171 EAST VALLEY WATER DISTRICT UTILITY PLANT SCHEDULE OF ADDITIONS AND RETIREMENTS - WATER YEAR ENDED JUNE 30, 2007 RETIREMENTS: Transmission and Distribution Plant: Pipeline and Services: San Manuel Indian Reservation pipelines and services transferred in exchange for slope easement: San Manuel pipes and services San Manuel pipes and services San Manuel bingo San Manuel bottling plant General Plant: Transportation and General Equipment: Generac SD060 power generator 1994 Ford F150 pick up 1995 GMC Sierra cab and chassis with C -Tec body- mounted 1997 Ford F150 pick up '1997 GMC Suburban 2000 GMC 3/4 ton truck Pump 1986 Ford #1 Total Retirements -56- Schedule Four Page 5 of 7 $ 75,380 241 8,237 4,216 88,074 10,539 6,458 17,120 9,262 19,955 8,000 6,503 27,085 104,922 $ 192,996 EAST VALLEY WATER DISTRICT UTILITY PLANT SCHEDULE OF ADDITIONS AND RETIREMENTS - SEWER YEAR ENDED JUNE 30, 2007 ADDITIONS: Collection Plant: Schedule Four Page 6 of 7 Sewage Pipelines and Services Tract # 14757 $ 251,195 Tract # 16607 167,730 Tract # 10085 8,035 Sewer main Via Deldene 24,199 451.159 General Plant: Office Furniture and Equipment 479 Replacement panels and chairs 2,237 Dell Poweredge 1850 server 2,734 Three (3) Dell E310 computers for customer service 1,058 Dell Optiplex GX520 650 Dell Optiplex GX520 650 Dell E510 computer 506 Dell E510 computer 506 Dell E520 computer 486 Xerox Color Printer (net of rebate) 415 Six (6) phones for Suite 19 1,277 Switch for phone connection to Suite 19 1,354 11.873 Transportation and General Equipment: Safety cabinet with metal oily waste can 479 Mighty Movers trailers (60kw Generac and 100kw cat & parts) 8,718 Two (2) 8 X 12 steel plates 2,333 Generator hook -up in maintenance yard 1,829 Air testing unit for sewer crew 2,003 2006 GMC Sierra 13,054 2006 GMC Sierra 12,511 2006 GMC Sierra 12,356 2007 GMC Truck 13,389 2007 GMC Truck 13,389 2007 GMC Track 13,389 -57- 0 Schedule Four Page 7 of 7 EAST VALLEY WATER DISTRICT UTILITY PLANT SCHEDULE OF ADDITIONS AND RETIREMENTS - SEWER YEAR ENDED JUNE 30, 2007 ADDITIONS (continued): Transportation and General Equipment (continued): White tool box. for truck #147 $ 339 Weatherguard tool box for truck #232 269 Bobcat 225 generator for truck #223 1,776 Upgrade on vehicle #11 10,112 105,946 Total Additions $ 568,978 RETIREMENTS: Collection Plant: Sewage Pipelines and Services: San Manuel Indian Reservation pipelines and services transferred in exchange for slope easement: San Manuel Indian Reservation $ 45,039 San Manuel Indian Reservation 4,859 San Manuel Indian Reservation 142 50,040 General Plant: Transportation and General Equipment: Generac SD060 power generator 1994 Ford F 150 pick up 1995 GMC Sierra cab and chassis with C -Tec body- mounted 1997 Ford F 150 pick up 1997 GMC Suburban 2000 GMC :3/4 ton truck SJ600E: Sewer rig trailer Pump Total Retirements -58- 0 10,539 6,457 7,337 9,262 19,956 8,000 26,877 428 $ 138,896 EAST VALLEY WATER DISTRICT UNREDEEMED BOND COUPONS - RETIRED DEBT JUNE 30 2007 Interest Bond Coupons Principal Bond Series Payable Payable Schedule Five Total Amount Payable 1955 Water Revenue Bonds $ 829 $ $ 829 1957 General Obligation Bonds 211 211 1966 Water Revenue Bonds - Division 1 425 425 1966 Water Revenue Bonds - Division II 5,010 - 5,010 $ 6,475 $ $ 6,475 -59- - 0 Schedule Six EAST VALLEY WATER DISTRICT CERTIFICATES OF PARTICIPATION - SERIES 2001 PRINCIPAL AND INTEREST REPAYMENT SCHEDULE JUNE 30, 2007 Interest Total Due Date Principal Rate Interest Payments 12 -1 -07 $ 690,000 4.250% $ 181,217 $ 871,217 6 -1 -08 4.250 166,555 166,555 12 -1 -08 720,000 4.250 166,555 886,555 6 -1 -09 4.250 151,255 151,255 12 -1 -09 750,000 4.250 151,255 901,255 6 -1 -10 4.250 135,317 135,317 12 -1 -10 785,000 4.250 135,317 920,317 6 -1 -11 4.250 118,636 118,636 12 -1 -11 790,000 4.250 118,636 908,636 6 -1 -12 4.400 101,849 101,849 12 -1 -12 820,000 4.400 101,849 921,849 6 -1 -13 4.500 83,809 83,809 12 -1 -13 855,000 4.500 83,809 938,809 6 -1 -14 4.625 64,571 64,571 12 -1 -14 900,000 4.625 64,571 964,571 6 -1 -15 4.700 43,759 43,759 12 -1 -15 220,000 4.700 43,759 263,759 6 -1 -16 4.800 38,589 38,589 12 -1 -16 230,000 4.800 38,589 268,589 f3-1 -17 4.875 33,069 33,069 12 -1 -17 240,000 4.875 33,069 273,069 f3-1 -18 4.875 27,219 27,219 12 -1 -18 250,000 4.875 27,219 277,219 6 -1 -19 5.000 21,125 21,125 12 -1 -19 565,000 5.000 21,125 586,125 6 -1 -20 5.000 7,000 7,000 12 -1 -20 280,000 5.000 7,000 287,000 Totals $ 8,095,000 $ 2,166,723 $ 10,261,723 m Schedule Seven EAST VALLEY WATER DISTRICT REFUNDING CERTIFICATES OF PARTICIPATION - SERIES 1996 PRINCIPAL AND INTEREST REPAYMENT SCHEDULE JUNE 30, 2007 Due Date Principal Interest Payments 12 -1 -07 $ 540,000 6 -1 -08 $ 585,612 12 -1 -08 575,000 6 -1 -09 606,842 12 -1 -09 615,000 16,605 Totals $ 1,730,000 Interest Rate 5.10% 5.30 5.30 5.40 5.40 -61- Total Interest Payments $ 45,612 $ 585,612 31,843 31,843 31,842 606,842 16,605 16,605 16,605 631,605 $ 142,507 $ 1,872,507 Schedule Eight EAST VALLEY WATER DISTRICT 2004 PROJECT INSTALLMENT SALE NOTE PRINCIPAL AND INTEREST REPAYMENT SCHEDULE JUNE 30, 2007 -62- Interest Total Due Date Principal Rate Interest Payments 8 -31 -07 $ 175,223 4.500% $ 206,551 $ 381,774 2 -29 -08 179,165 4.500 202,609 381,774 8 -31 -08 183,196 4.500 198,578 381,774 2 -28 -09 187,318 4.500 194,456 381,774 8.31 -09 191,533 4.500 190,241 381,774 2 -28 -10 195,842 4.500 185,931 381,773 8-31 -10 200,249 4.500 181,525 381,774 2.28 -11 204,754 4.500 177,019 381,773 8.31 -11 209,361 4.500 172,412 381,773 2.29 -12 214,072 4.500 167,702 381,774 8.31 -12 218,889 4.500 162,885 381,774 2-28 -13 223,814 4.500 157,960 381,774 8.31 -13 228,849 4.500 152,924 381,773 2•-28 -14 233,999 4.500 147,775 381,774 831 -14 239,264 4.500 142,510 381,774 2 -28 -15 244,647 4.500 137,127 381,774 8.31 -15 250,151 4.500 131,622 381,773 2 -29 -16 255,780 4.500 125,994 381,774 8 -31 -16 261,535 4.500 120,239 381,774 2 -28 -17 267,419 4.500 114,354 381,773 8 -31 -17 273,436 4.500 108,337 381,773 2 -28 -18 279,589 4.500 102,185 381,774 8 -31 -18 285,879 4.500 95,894 381,773 2 -28 -19 292,312 4.500 89,462 381,774 8 -31 -19 298,889 4.500 82,885 381,774 2 -29 -20 305,614 4.500 76,160 381,774 8 -31 -20 312,490 4.500 69,284 381,774 2 -28 -21 319,521 4.500 62,253 381,774 8 -31 -21 326,710 4.500 55,063 381,773 2 -28 -22 334,061 4.500 47,713 381,774 8 -31 -22 341,578 4.500 40,196 381,774 2 -28 -23 349,263 4.500 32,511 381,774 8 -31 -23 357,122 4.500 24,652 381,774 2 -29 -24 365,157 4.500 16,617 381,774 8 -31 -24 373,373 4.500 8,401 381,774 Totals $ 9,180,054 $ 4,182,027 $ 13,362,081 -62- Schedule Nine EAST VALLEY WATER DISTRICT DEPARTMENT OF WATER RESOURCES CONSTRUCTION LOAN PRINCIPAL AND INTEREST REPAYMENT SCHEDULE JUNE 30, 2007 -63- Interest Total Due Date Principal Rate Interest Payments 1 -01 -08 $ 3,381 0.00% $ - $ 3,381 7 -01 -08 3,381 0.00 - 3,381 1 -01 -09 3,381 0.00 - 3,381 7 -01 -09 3,381 0.00 - 3,381 1- -01 -10 3,381 0.00 - 3,381 7-01 -10 3,381 0.00 - 3,381 1-01 -11 3,381 0.00 - 3,381 7 -01 -11 3,381 0.00 - 3,381 1 -01 -12 3,381 0.00 - 3,381 7.01 -12 3,381 0.00 - 3,381 1 -01 -13 3,381 0.00 - 3,381 7 -01 -13 3,381 0.00 - 3,381 1 -01 -14 3,381 0.00 - 3,381 7 -01 -14 3,381 0.00 - 3,381 1 -01 -15 3,381 0.00 - 3,381 7 -01 -15 3,381 0.00 - 3,381 1 -01 -16 3,381 0.00 - 3,381 7 -01 -16 3,381 0.00 - 3,381 1 -01 -17 3,381 0.00 - 3,381 7 -01 -17 3,381 0.00 - 3,381 1 -01 -18 3,381 0.00 - 3,381 7 -01 -18 3,381 0.00 - 3,381 1 -01 -19 3,381 0.00 - 3,381 7 -01 -19 3,381 0.00 - 3,381 1 -01 -20 3,381 0.00 - 3,381 7 -01 -20 3,381 0.00 - 3,381 1 -01 -21 3,381 0.00 - 3,381 7 -01 -21 3,381 0.00 - 3,381 1 -01 -22 3,381 0.00 - 3,381 7 -01 -22 3,381 0.00 - 3,381 1 -01 -23 3,381 0.00 - 3,381 7 -01 -23 3,381 0.00 - 3,381 1 -01 -24 3,381 0.00 - 3,381 7 -01 -24 3,381 0.00 - 3,381 1 -01 -25 3,381 0.00 - 3,381 7 -01 -25 3,381 0.00 - 3,381 1 -01 -26 3,381 0.00 - 3,381 7 -01 -26 3,381 0.00 - 3,381 1 -01 -27 3,381 0.00 - 3,381 7 -01 -27 3,381 0.00 - 3,381 1 -01 -28 3,381 0.00 - 3,381 7 -01 -28 3,381 0.00 - 3,381 1 -01 -29 3,381 0.00 - 3,381 7 -01 -29 3,381 0.00 - 3,381 1 -01 -30 3,381 0.00 - 3,381 7 -01 -30 3,381 0.00 - 3,381 1 -01 -31 3,383 0.00 - 3,383 Totals $ 158,909 $ - $ 158,909 -63- EAST VALLEY WATER DISTRICT 2006 PROJECT INSTALLMENT SALE NOTE PRINCIPAL AND INTEREST REPAYMENT SCHEDULE Due Date Prind JUNE 30, 2007 Interest Rate Interest Schedule Ten Total Payments 9 -3 -07 $ 93,998 4.95% $ 144,014 $ 238,012 3 -3 -08 96,324 4.95 141,688 238,012 9 -3 -08 98,708 4.95 139,304 238,012 3 -3 -09 101,151 4.95 136,861 238,012 9 -3 -09 103,655 4.95 134,358 238,013 3 -3 -10 106,220 4.95 131,792 238,012 9 -3 -10 108,849 4.95 129,163 238,012 3 -3 -11 111,543 4.95 126,469 238,012 9 -3 -11 114,304 4.95 123,708 238,012 3 -3 -12 117,133 4.95 120,879 238,012 9 -3 -12 120,032 4.95 117,980 238,012 3 -3 -13 123,003 4.95 115,010 238,013 9 -3 -13 126,047 4.95 111,965 238,012 3 -3 -14 129,167 4.95 108,845 238,012 9 -3 -14 132,364 4.95 105,648 238,012 3 -3 -15 135,639 4.95 102,373 238,012 9 -3 -15 138,997 4.95 99,016 238,013 3 -3 -16 142,437 4.95 95,575 238,012 9 -3 -16 145,962 4.95 92,050 238,012 3 -3 -17 149,575 4.95 88,437 238,012 9 -3 -17 153,277 4.95 84,735 238,012 3 -3 -18 157,071 4.95 80,942 238,013 9 -3 -18 160,958 4.95 77,054 238,012 3 -3 -19 164,941 4.95 73,071 238,012 9 -3 -19 169,024 4.95 68,988 238,012 3 -3 -20 173,207 4.95 64,805 238,012 9 -3 -20 177,494 4.95 60,518 238,012 3 -3 -21 181,888 4.95 56,125 238,013 9 -3 -21 186,389 4.95 51,623 238,012 3 -3 -22 191,002 4.95 47,010 238,012 9 -3 -22 195,729 4.95 42,283 238,012 3 -3 -23 200,574 4.95 37,439 238,013 9 -3 -23 205,537 4.95 32,475 238,012 3 -3 -24 210,625 4.95 27,387 238,012 9 -3 -24 215,838 4.95 22,174 238,012 3 -3 -25 221,180 4.95 16,832 238,012 9 -3 -25 226,654 4.95 11,358 238,012 3 -3 -26 232,264 4.95 5,749 238,013 Totals $ 5,818,760 -64- 0 $ 3,225,703 $ 9,044,463 STATEMENT OF NET ASSETS COMMENTS CURRENT ASSETS Current assets are discussed in detail as shown below: Cash Cash consisted of the following: Office Cash Funds: Petty cash fund $ 1,000 Cashier's fund 750 Citizens Business Bank - checking 474,441 Local Agency Investment Fund 5,279,410 Cash held for Certificate of Participation funds 789,736 Citizens Business Bank - Money Market 777,869 Citizens Business Bank - Money Market - Construction Fund 8,441,503 Total Cash Funds Available 15,764,709 Less cash restricted for Certificate of Participation Funds 789,736 Customer deposits 1,592,069 Construction deposits 308,766 Construction Hand 8,441,503 Arroyo Verde Assessment District 30,563 $ 4,602,072 Investment in Debt Securities Investments consist of the following: Citizens Business Bank Investment Account $ 4,165,499 Citizens Business Bank Construction Fund 1,398,172 Total Investments 5,563,671 Less investments restricted for: Construction fund 1,398,172 $ 4,165,499 -65- 0 Accounts Receivable net - $1,546,505 Water and sewer accounts receivable at June 30, 2007 consisted of the following: Accounts receivable $ 1,566,730 Less: Allowance for uncollectible accounts (20,225) $ 1,546,505 Interest Receivable - $174,427 Interest receivable at June 30, 2007 consisted of the following: Local Agency Investment Fund $ 62,990 Investments in debt securities 73,024 Money Market Funds 35,328 COP Funds 3,085 $ 174,427 Other Receivables - $135,957 Other receivables at June 30, 2007 consisted of the following: City Creek Water Co. $ 27,792 Developers and Others 21,202 North Fork 470 Hazard Mitigation Grant 59,012 Arroyo Verde Assessment District 27,481 $ 135,957 Inventory - Average Cost - $1,000,211 The inventory at June 30, 2007 consisted of the following: Water pipe, fittings, valves, etc. $ 777,512 Meters 131,471 Treatment plant 79,347 Office supplies 5,813 Automotive parts 6,068 $ 1,000,211 Prepaid Expenses and Deposits - $114,446 Prepaid expenses and deposits at June 30, 2007 consisted of the following: Prepaid insurance $ 22,608 Miscellaneous expenses and deposits 91,838 $ 114,446 .. NONCURRENl'ASSETS A schedule of the changes in Utility Plants for water and sewer are shown in Schedule Three. A summary of the Utility Plants at June 30, 2007 is shown below: Balances, July 1, 2006 Add: 2006 -2007 Additions and transfers from construction in progress Less: Assets retired Less: Accumulated depreciation Balances, Utility Plant in Service, June 30, 2007 Construction in progress Total Water Sewer $ 90,594,757 12,017,171 192,996 102,418,932 28,078,436 $ 23,908,930 568,978 138,896 24,339,012 11,663,442 $ 74,340,496 $ 12,675,570 Total $114,503,687 12,586,149 331,892 126,757,944 39,741,878 87,016,066 9,454,796 $ 96,470,862 Depreciation for the year amounted to $2,192,052 in the Water Department and $622,778 in the Sewer Department. Construction in progress, consisting of Utility Plant additions, which were incomplete at June 30, 2007, is shown below: Water Department Parcel Map 13511 $ 4,679 Tract 10302 (1,317) Tract 15114 676 Cultural Center San Manuel Indians 48,295 Tract 16014 1,220,469 Install Bafflers - Plant 134 25,158 New District: Offices 1,300,940 Main replacement - Del Rosa, 6th to 9th (7,417) Tract 15114 5,235 36" Interzone Pipeline - Sterling Ave 28,185 Feasibility :Study Thm 189,489 Tract 15650 400 Tract 14516 (2,616) Tract 1691st 431,349 Tract 1663E5 272 Tract 16745 (679) Tract 15731 2,301 Plant 27 reactivation 631,732 Santa Ana River discharge 157,688 Main replacement - Live Oak Rd 815 Plant 24 - design storm drain 22,594 Tract 15960 52,535 Tract 16963 1,389 Tract 16448 79 -67- Water Department (continued) FEMA - North Fork 6th & Tippecanoe Tract 17590 New Treatment Plant Plant 40 Rehabilitation GIS System Tract 16543 14th St and Victoria Tract 17793 Tract 17263 PI28 - Pilot Demo Treatment Facility PI 101 -Rehabilitate Reservoir 24220 5th St - install services Tract 17372 Plant 152 8, new property to West Repairs to Hillside - NF -FEMA Water Master Plan Greenspot Village/ Marketplace Boulder Ave 5th St Tract 17682 Tract 18199 Tract 17576 Pluto & Stoney Creek Comm Ctr Greenspot Water Treatment Plant Central Ave & 6th St library Tract 17668 - 36 lot subdivision Ernerton Elementary II Plant 134 & EVWD Distribution Extension of water and sewer lines 27184 Meines - 6" DDC PM 17635 - Water and sewer extension Utility relocation - Pacific east of Victoria Upgrade and relocate pry - Orange Regional water supply and treatment Tent Tract 18528 8 lot sfr NE corner High & Palm 262 141 2008 Water quality conference Sterling pipeline - Phase 2 San G High School - 8 in DDC Plant 12 - Repairs Tract 18558 AMG Associates Tract 18583 Centerstone Comm Replace waterline on Pumalo St. at the flood control channel M $ 254,061 563 29,957 1,017,708 610,984 22,261 5,385 7,046 (1,782) 1,815 5,431 19,065 13,357 (507) 1,103,535 10,034 152,804 17,794 744 1,839 1,264 12,258 24,246 13,790 (4,648) 12,957 32,087 (225) 9,656 137 5,094 29,444 20,765 243 1,002 (1,544) 9,506 7,547 26,336 92 44 7,240 7.591.636 Sewer Departrneni; PM 13511 $ 53 Tract 10302 597 Cultural Center San Manuel 2,445 Tract 16014 1,375,268 Del Rosa /9th, Del Rosa /6th 231 Tract 15114 313 Tract 15650 79 Tract 14516 (813) Tract 16914 338,822 Tract 16745 (1,419) Tract 15731 (1,000) Tract 15960 123,780 Tract 17590 35,268 Tract 17793 547 Tract 17263 1,335 City of Highland - Corp yard 267 Greenspot Village 124 Tract 17682 - Boulder Ave 5th St (18,968) Tract 18199 (4,391) Tract 17576 (1,075) Tract 17667 - 36 lot subdivision (5,332) Sewer system management plan gap ana 16,717 City of Highland - street improvements 204 Repair sewer between 6th & Baseline 108 1,863,160 Total Construction in Progress $ 9,454,796 .• DEFERRED CHARGES - $252,529 The deferred financing charges are additional costs incurred for the Certificates of Participation and are being amortized over 20 years. Amortization of these charges during 2006 - 2007 was as follows: Balance, July 1, 2006 Less: 2006 -2007 amortization Balance, .June 30, 2007 $ 233,406 (35,280) 198.126 The District has incurred incremental direct costs paid to third parties in originating lease arrangements. These costs are being amortized over the lease term of 30 years. Amortization of these costs during 2006 -2007 is as follows: Balance, July 1, 2006 57,078 Less: 2006 -2007 amortization (2,675) Balance, June 30, 2007 54,403 Total Deferred Costs $ 252,529 LONG -TERM DEBT - $24,982.723 Schedules Six, Seven, Eight, Nine and Ten set forth the future annual payments of the Certificates of Participation and notes payable. CURRENT LIABILITIES Current liabilities consisting of accounts payable, accrued liabilities, accrued interest payable, deposits, Certificates of Participation and notes payable, are discussed below: Accounts Payable - $1,839,260 Trade accounts payable at June 30, 2007. Accrued Payroll and Benefits - $696,387 Accrued Payroll and Benefits Accrued Pension $ 652,032 44,355 $ 696,387 Accrued payroll and benefits consist of accrued payroll, payroll taxes, deferred compensation, employee benefits, and pension. -70- 0 Customer Service Deposits - $1,592,069 Customers' service deposits amounting to $1,592,069 were held by the District to secure payments of waiter tolls and sewer charges. Accrued Interest Payable - $277.990 Accrued interest payable as of June 30, 2007 is shown below: 1955 Water Revenue Bonds $ 829 1957 General Obligation Bonds 211 1966 Water Revenue Bonds 5,435 Certificates of Participation 37,805 2004 Installment Note 137,701 2006 Installment Note 96,009 Total $ 277,990 Deposits - Refundable - $308,766 Manhole and inspection fee deposits of $308,766 were held by the District as security against improper construction of manholes and water and sewer lines. These deposits are refunded to contractors once the construction is deemed satisfactory. Long -Term Debt - Current Portion - $1,781,156 The current portion of long -term debt consists of the following: 2004 Installment Note 2006 Installment Note COP Principal DWR Arroyo Verde Construction Loan Issue discounts Issue premiums $ 354,388 190,322 1,230,000 3,381 (3,660) 6,725 $ 1,781,156 -71- 0 WATER OPERATIONS The fiscal period ended June 30, 2007 was the fifty -third full year of operation for the District. The year's operations are shown in Exhibit "B ". A comparative summary of water tolls revenue, by month, is shown below: Month 2006-2007 2005-2006 Billed Billed Connections Revenue Connections Revenue July 22,182 $ 1,357,212 21,648 $ 1,362,501 August 22,064 1,278,032 21,707 1,218,186 September 21,976 1,527,003 21,798 1,374,826 October 22,048 1,142,121 21,827 1,070,067 November 21,976 1,069,082 21,880 886,063 December 22,023 905,067 21,827 874,861 January 22,007 884,855 21,784 845,350 February 21,959 792,342 22,034 758,066 March 22,015 807,296 21,878 712,840 April 21,928 986,599 21,838 757,060 May 21,961 1,016,165 21,855 717,015 June 21,899 1,345,565 21,698 1,230,211 Totals $ 13,111,339 $ 11,807,046 The rate charged to customers for water consumption for the years end June 30, 2007 and 2006 was $1.08 and $1.01 per hundred cubic feet (HCF), respectively. -72- Monthly meter charges and installation charges in effect during the year were as follows: 3/4" Service 1" Service 1 -1/2" Service 2" Service 3" Service: 4" Service: 6" Service: 8" Service: -73- $ 5,401 7,626 15,614 21,404 43,469 71,211 136,117 226,363 District Monthly Size of Service Meter Charge 5/8" $ 7.50 3/4" 7.50 V 14.00 1 -1/12" 29.50 2" 42.50 31, 74.50 4" 124.00 6" 241.00 g, 362.00 Flat rate Per month 40.00 Water Connection Size of Service Charge 3/4" Service 1" Service 1 -1/2" Service 2" Service 3" Service: 4" Service: 6" Service: 8" Service: -73- $ 5,401 7,626 15,614 21,404 43,469 71,211 136,117 226,363 The fiscal period ended June 30, 2007 was the fiftieth full year of sewer operations for the District. The year's operations are shown in Exhibit "B ". A comparative summary of sewer tolls revenue, by month, is shown below: Month July August September October November December January February March April May June Totals 2006-2007 Billed Connections Revenue 19,182 $ 712,343 19,188 685,717 19,190 780,845 19,234 665,255 19,225 682,570 19,212 651,245 19,227 659,164 19,191 627,290 19,221 629,132 19,173 662,026 19,219 652,965 19,245 731,048 $ 8,139,600 2005-2006 Billed Payments Connections Revenue 18,875 $ 707,263 18,911 670,430 18,922 725,594 18,938 660,574 18,937 628,988 18,907 623,821 18,975 632,740 19,026 598,744 19,158 596,425 19,089 587,301 19,105 608,702 19,165 693,326 $ 7,733,908 The District's sewer system is connected to main lines leading to the Sewage Disposal Plant operated by the City of San Bernardino. In 1980, for treatment of the District's sewage, the District paid the City an amount equal to 92% of the City's established sewer rate. In 1981, the agreement between the City and the District was amended. Under the amended agreement, the City and the District agreed to adopt a uniform regional sewer rate. A summary of payments is shown below: 1980 -81 1981 -82 1982 -83 1983 -84 1984 -85 1985 -86 1986 -87 1987 -88 1988 -89 1989 -90 1990 -91 1991 -92 74- Total Customer Payments Billing to City $ 1,094,056 $ 638,906 1,226,288 690,649 1,567,722 996,613 1,905,728 1,208, 036 1,915,433 1,349,565 2,074,012 1,346,233 2,112,391 1,357,062 2,103,552 1,459,388 2,302,316 1,522,914 2,475,445 1,623,554 2,769,747 1,681,608 4,061,294 3,138,131 1992 -93 1993 -94 1994 -95 1995 -96 1996.97 1997.98 1998.99 1999.00 2000 -01 2001 -02 2002 - -03 2003 - -04 2004 - -05 2005 -06 2006 -07 Total Customer Billing 4,827,342 4,985,784 5,302,573 5,427,970 5,481,057 5,445,921 5,607,049 5,798,700 5,885,051 5,991,709 6,085,516 6,622,588 7,423,533 7,733,908 8,139,600 Sewer charges in effect at June 30, 2007 were as follows: Sewer Service Rates: Residential Through June 30, 2007 Payments to City 3,527,092 3,661,494 3,954,703 4,023,657 4,094,016 4,072,840 4,196,895 4,338,956 4,396,629 4,495,040 4,557,909 4,771,339 5,288,212 5,473,390 5,607,172 $22.25 monthly West of City Creek $24.25 monthly East of City Creek Sewer connection charges in effect during the year were as follows: Permit Charge: $ 25.00 /connection Inspection Charge: $ 75.00 /connection Connection Charge: $ 645.00 /EDU or portion thereof Trunk Sewer Charge: $ 158.00 /EDU or portion thereof -75- 0 Memorandum To: Bob Martin, General Manager 0 Front: Ron Buchwald, District Engineer iqL5ISIc � Date: 10/15/2007 R( Proposal to perform Design Services, provide Bidding Services and Construction Services for the North Fork Canal Replacement Project ( Amott Property) East Valley Water District entered into an agreement with CDM for professional engineering services in October 2005 to develop a preliminary design and a subsequent final design for the North Fork replacement pipeline through the eastern portion of the alignment. This alignment starts at the Plunge Creek Sand Box and continues eastward towards the North .Fork Intake Sand Box excepting there from most of the Arnott property. This section was originally in the project limits but was removed in 2005 due to the pending development of this property by a developer who could not work with the proposed alignment as approved by FEMA/OES. The developer would have been responsible for realigning this portion of the North Fork Canal. By early 2006 with the depressed housing market, the developer abandoned this project. Ron Amott still owns this property. In January 2007, the Board approved additional design work and to provide bidding and construction services for the first phase of work omitting the Amott property. Per Gary's presentation to the Board on October 9, 2007, FEMA/OES is requiring the District to proceed with replacement of the North Fork Alignment through the Amott Property by November 2008. This will require a fast track design and construction project. As part of the original design, CDM completed a 30% design of the North Fork Canal replacement through the Amott property. Attached to this memo is a proposal from CDM: to complete the design of this replacement project and to provide bidding and construction services. The proposal also includes geotechnical services to determine soil qualities and corrosion aspects, easement preparation for the new alignment and an Opinion of Probable Cost for the pipeline construction. The District is requesting CDM to provide bid assistance services as well as construction management services for this project. This project will go through a formal bid process and has an extra complexity of needing to follow federal grant requirements due to the FEMA grant for this project. Construction management services will help the District make sure the plans and specifications are followed along with the above- mentioned FEMA grant October 15, 2007 requirements. The District has several key projects moving forward at a fast pace. These services will help the District continue to move forward with all the projects. The proposal provides a detailed description of the work CDM will provide to complete the tasks indicated. The total cost of these services is $176,085.00. I recommend that the District accept CDM's proposal to perform these services as stated. 9220 Cleveland Ave, Suite 100 Rancho Cucamonga, Califomia 91730 tel: 909 579 -3500 fax: 909 980 -5185 October 2, 2007 Mr. Ron Buchwa ld P.E. District Engineer East Valley Water District 3654 E. Highland Avenue, Suite 18 Highland. Ca. 92346 -2607 Subject: North Fork Canal Relocation - Proposal for the Final Design, Bidding, and Construction Services for the Remaining Portion of the Canal Replacement Dear Mr. Buchwald: Based on discussions with Gary Sturdivan and you, CDM is pleased to provide this proposal for the fast -track final design of the remaining portion of the North Fork Canal Relocation Project, basically through the Amott property, as a separate construction contract. This portion is approximately 7,000 feet of pipeline of the overall 16,000 feet of canal replacement. We completed a preliminary design for this pipeline in 2006, but the final design was deferred pending coordinating with preliminary residential development plans. The preliminary design included a topographic survey, but did not include a geotechnical investigation. We have based this proposal and schedule on the assumption that essentially the same alignment as in the prelirrdnary design is still feasible. Scope of Work: The following is the scope of wort: for this project Review existing survey data obtained during the initial 30% preliminary design submittal and determine if additional survey is required. Additional surveying, if required, is not included in this proposal. © Review the proposed pipeline routing in the field with a District representative to gather data, and investigate any potential problems with the alignment. The alignment presented in the initial '00% preliminary design submittal of the North Fork Canal will be re- evaluated, and if no issues found, will be used to prepare the drawings under this proposal, Ron Buchwald October 2, 2007 Page 2 • Prepare geotechnical investigation including borings along the alignment and prepare a geotechnical report. • Prepare 90% and 100% plan and profile and a detail drawings of the proposed pipeline alignment (estimated 10 sheets). • Prepare construction specifications and bidding documents, based on the first North Fork Canal construction package. • Based on the .final alignment, prepare easement documents for property acquisition. • Prepare a final Opinion of Probable Cost of the pipeline construction. • Provide Bidding Services, including: Advertising bids, distributing bid documents, responding to Bidder questions and preparing addenda, attending Pre -bid and Bid opening meetings, preparing a bid tabulation, and evaluating bids. • Provide Construction Services, including: Submittals and Shop Drawings, Contractor RFI's, Change Orders, Final Inspection and Punch List, attend various meetings, and As -Built Drawings. Schedule We understand the construction needs to be completed by November 2008. We will perform an expedited final design of the pipeline. The final design 90% submittal will be completed within 3 months of your notice to proceed. The 100% submittal will be 2 weeks after receipt Of your comments on the 90% submittal. Cost Proposal A detailed. fee proposal is attached. The fee for the final design, geotechnical investigation, easement documents, bidding, and constructi on services is $176,085. EWID Ho.^..`. For Ron Buchwald October 2, 2007 Page 3 If you have any questions please do not hesitate to contact the undersigned or Mark Van Dam at 909-579-3500. Very Jtrulully. `yours, Richard W. Corneille P.E. Vice President Camp Dresser &: McKee Inc. Enclosure EVND IJa:: ra> V a v O O O N 0 J d N N y 0 o w N N N W O N N N N (a N N N N N N N N N N N N N N d ++ ++ N .v W 41 W IJ N IJ IJ IJ N {J N N + a N+ ILI J 9 NN y fS 0 0 0 COJIS)NIaWN 0 0 0 0 0 0 0. 000 o o m m NN nCGn O B'.SN J 6 N +G, NSN p� F p ] 9 ]] ] 9 9999999 oQ' 9Q ] i O O Si Q y ;j l5 VO R 6666666 N 0 G 2 9999999 ».. '� N N B• 'N A N ^. y tp3 O w 7 h a 'O_'� a M �i O ICJ p� D O 2 O N :Y 6 m ? N i �z6E! o' :) N ^ ? a o m Q a g o m pG N p 0 m 0 x 3 ] rt � N O 7 H w C P 02 -1 OI O T N N A A N j OANNNNNNNN 00 N N P H y n J H NNNN HIflHw HNNNw NHHN H Hw wHHHHNHN Hw wwwH ] 0 S7 n N o O N N O A ' J A� W J IJ J P W W J J W W J J W W J J W W J J ++ G � 000000000 (n (n 3 N m H w w H b N _ <9 w N N H H w N w N H N N H N N N H w N N N N H w w H b ] m r W NV H 0 O A O O) O1 O1 pN SJ N O O) O1 N N m N ONi W O) OI �� N y� N W mO� O O L 00 A O 00 00 O N0 00 0000 O 0000000000 00 000 A + + + W A + W O N w O N p W O d W W W (O W W W A A O N W JA N W Ol <P T N O N N N N 3 wwN wNbNwwbww bwbw NHNNNb NwNN «NN '° N r ' Q O p. N N N A O .p A p A N O1 N A N B O q 1pp� q B00 00 ' 00 p� B p .p O O CJ 0 0 0 0 0 0 0 O O O O O 0000000 O b ] w WHHN HwHb «HHNw wHNw NNwHbwwNNN Nw NHwN � 1 N r v 0 W A+ ja J W y ��IJJJJJJJ WW N N J 0 o mo o . 0 o BOO 0 ... OO ��wo N N N N N O A 00000000 00 O O N N 9 Jy. P wNwN H(9Nw HHNNb NNNN N Hw NHw NNHwM NH NwNN Q H 3 m o W a + w m m o (fl o Ian i u -i n1 m� W N P A° N A MNNw w-1 b wNw N «N Nw NN N ww NN Nw w H NN NN NNwN y p 0 0 N- 0 ( 0 0 0 0 N H w N H N l9 N N w NNNN H N H« N N N b H N N H w N N N b w N w D � o((pp I (Ap W� m OI P 'ON m -0000 NNNIa NNN +000 AO AO + �A W +p N A O N W W A I� N W W O-- J J -- - NNNHN wNNN b Nb N NH NNHHN wH HNHN Nw wN D N 9 � N N W W N N N + ' • ' ' • 1 • ' 1 OO O N N w H N H N w b w NHN H w H H w N N (9 N w -! D +J N )O ++ + W N 0 r INTEGRATED MANAGEMENT PROGRAM DEMONSTRATION PROJECT AGREEMENT This Integrated Management Program Demonstration Project Agreement (Agreement) is between the San Bernardino Valley Water Conservation District, San Bernardino Valley Municipal Water District, Western Municipal Water District of Riverside County, the City of San Bernardino Municipal Water Department, the City of Redlands, and East Valley Water District and effective from the date of execution by all parties to the. Agreement (Parties). REMALS WHEREAS, the Parties have various missions, but intend through this Agreement to provide a management structure for the purposes of (1) spreading native water as and when available; (2) spreading supplemental water when native water is not otherwise available to increase water levels in the upper basin (forebay); and, (3) managing recharge to avoid deleterious impacts in the pressure zone; and, WHEREAS, there are pre - existing agreements or judgments that impose conditions on some or all of the Parties, including, the "Seven Oaks Accord," the Western Judgment, the 1977 Big Bear judgment and the "Exchange Plan"; and, WI:IEREAS, the Parties intend that this Agreement will implement a demonstration program, pending the preparation and full implementation of the Integrated Management Program, as that term is defined in the "Seven Oaks Accord," and, as such, is intended to be of limited duration. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: TERMS OF AGREEMENT 1. This agreement shall have a term of one (1) year from execution by all Parties (Initial Term). The Initial Term may be extended by the consent of all Parties for four (4), one -year periods (Extension Terms). Unless all Parties make an express determination that the Agreement may extend beyond five (5) years, the Agreement shall expire at the end of the Extension Terms. 2.. The Parties shall establish replenishment targets (Replenishment Targets) for recharge areas for the Initial Term, The Replenishment Targets established for the Initial Team are attached hereto as Exhibit "A ". At any time that it is determined necessary, the: Parties will review and revise the Replenishment Targets; provided, however, that at the beginning of each Extension Term, the Parties will meet and confer in good i:aith':o review and revise the Replenishment Targets. Any revision to the Replenishment Targets will be incorporated as though set forth in fi .2111 in this Agreement. DOCUMENT Integrated Management Program Demonstration Project Agreement 3. The Parties will meet and confer in good faith to prepare a mechanism for evaluating the effects of the proposed Replenishment Targets, using such technical tools and analyses as they may collectively develop. At a minimum, the Parties agree that the groundwater molel prepared by United States Geological Survey (USGS) for SBVMWD will be utilized to determine potential effects. Additionally, available, current groundwater levels will be analyzed. The Parties may determine that additional data are required for analysis and, by mutual consent, develop technical memoranda setting forth the information that will be considered to re- evaluate the effects of Replenishment Targets. 4. The Replenishment Targets are not intended to be fixed limits. They are intended to serve as thresholds for additional review and analysis. In the event that any party to this Agreement requests a change to the Replenishment Targets, then all Parties to the Agreement shall meet and confer in good faith to evaluate the proposed change to spreading targets, using the evaluation methodology set forth in the technical memoranda that may be prepared as set forth in Paragraph 3. In order to change Replenishment Targets, the Patties must achieve consensus. 5. :Notwithstanding any other provision in this Agreement, the Parties will meet quarterly, or more frequently as required, to discuss, review and analyze this demonstration program and its effectiveness. 6. This Agreement may be executed in counterparts. 7. This Agreement may be terminated with the written consent of all Parties. 8. This Agreement does not confer a benefit on any other person, corporation, organization, agency or municipality; no third party beneficiary is created through this Agreement. 4. This Agreement does not obligate funds on behalf of any Party. lo. No Party to this Agreement may use this Agreement, or any actions taken pursuant to this Agreement, as evidence in any pending water rights proceedings. SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT By: DATE: �� D Integrated Management Program Detnonstmhon Project Agreetnent SAN BERNARle +QVALLEY MUNCIPAL VTATET \DISTR] DATE: WESTERN MUNICIPAL WATER DISTRICT OF RIVERSIDE COUNTY By; DATE: l CITY OF SAN BERNARDINO MUNICIPAL. WATER DEPARTMENT Eiy �j JOA^4 64A, DATE: CITY OF REDLANDS By: � Hu —� DATE: D —49 .Attest: � By: � ti� DATE: 16-69- EAST VALLEY WATER DISTRICT By;� ;� DATE: ® �> aef Q a X lL I'`I jI II ii iI'�a oo: �U m �p to 1 iI i I v a m � I I I I I I m I � ' i l I h I I I �o y' I I i3I cvi I_i 4t I� � � aj i ci inn. Isl Irk �ci� �ai in� ic„ '� iir I ICI ! r 11 I I E I 7 ^•E c` i � N w F i N C^ O O O O O O O O O O T � Q Itp. O e-I IlD : iN I rI a •� � m j I 1 I p ~N� I�I�II �IIi �.IiI I � ' i l I h I I I �o y' I I i3I cvi I_i 4t I� � � aj i ci inn. Isl Irk �ci� �ai in� ic„ '� Agency Consent for a one -year Extension Term under the Integrated Management Program Project Agreement Paragraph No. 1 of the Integrated Management Program Demonstration Project Agreement provides that "the Initial Term of the Agreement may be extended by the consent of all Parties for four (4), one -year periods ". The Parties to the agreement are the San Bernardino Valley Water Conservation District, San Bernardino Valley Municipal Water District, Western Municipal Water District of Riverside County, the City of San Bernardino Municipal Water Department, the City of Redlands, and Fast Valley Water District. At its __ meeting on 2007 the governing body of the upon motion by , second by __ and affirmative vote of its members authorized and consents to extending the term of the agreement through September 30, 2008. to Title: V d O IL c 0 R L C 0 E y G1 O n LOOLnL.otoLoLOOLO U- V a r Cl) O - E x m O v R 2 R O C r 0 0 0 0 0 0 0 E N O O O O O� p 0 t- j; N N P� O h N �„ f tf1 N N T R y LL N r � =a y Y O O E v M y � 7 Vl O Y = Lca M co r 00 m � R i 0 to a N .j U R 0 O R a d Q c m E d Ol R c R E m 0 O U LL cn U m c 0 CL N R a R E O U LL U m in a R CL 0 R R R Y R d R C_ N R R R m C U! O O 7 °o tip E0 n rn m m W M hla N ' lN IIr II R U: LL Q N O 3 L � N Y O N :: E R CL N Y w � N R� 00 0 0 0 0 0 0 0 E N O O O O O� p 0 t- j; N N P� O h N �„ f tf1 N N T R y LL N r � =a y Y O O E v M y � 7 Vl O Y = Lca M co r 00 m � R i 0 to a N .j U R 0 O R a d Q c m E d Ol R c R E m 0 O U LL cn U m c 0 CL N R a R E O U LL U m in a R CL 0 R R R Y R d R C_ N R R R m C U! O O 7 EMPLOYMENT AGREEMENT THIS AGREEMENT, made and entered into this 23`a day of October, 2007, by and between the EAST VALLEY WATER DISTRICT (hereinafter referred to as "DISTRICT''") and ROBERT E. MARTIN (hereinafter referred to as "EMPLOYEE "). RECITALS WHEREAS, the DISTRICT is a County Water District organized and operating pursuant to California Water Code Section 30000 et seq., and is governed by a Board of Directors (hereinafter referred to as "BOARD") composed of five publicly - elected representatives. WHEREAS, the BOARD desires to employ the services of EMPLOYEE as General Manager of the DISTRICT; and WHEREAS, the BOARD desires to provide certain benefits, establish certain conditions of employment, and set certain working conditions of said EMPLOYEE; and WHEREAS, the BOARD desires to (1) secure and retain the services of EMPLOYEE? and to provide inducement for him to remain in such employment with the DISTRICT, (2) make possible full work productivity as assuring EMPLOYEE's morale and peace of mind with respect to future security, (3) deter any possible malfeasance or dishonesty for personal gain on the part of EMPLOYEE, and (4) provide a just means for terminating EMI'LOYEE's services at such time as he may be unable fully to discharge his duties due to disability or when the BOARD may desire to otherwise terminate EMPLOYEE'S employment with the DISTRICT; and WHEREAS, EMPLOYEE desires to accept employment as General Manager of said DISTRICT upon all of the terms and conditions set forth herein. COVENANTS NOVI, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, the parties hereto agree as follows: Section L DUTIES: BOARD hereby agrees to employ said EMPLOYEE as General Manager of said DISTRICT, and EMPLOYEE hereby accepts such employment with the DISTRICT, to perform all statutory functions and duties and such other legally permissible and proper duties and functions as the BOARD shall assign from time to time. 1 Section 2. TERM: 2.1. EMPLOYEE agrees to remain in the exclusive employ of DISTRICT until November 30, 2011, and shall neither seek, accept, nor become employed by any other employer until after said termination date, unless this AGREEMENT is earlier terminated in the manner hereinafter provided. 2.2. Nothing in this AGREEMENT shall prevent, limit, or otherwise interfere with the right of the BOARD to terminate the services of EMPLOYEE at any time, subject only to the provisions set forth in Sections 3.1 or 3.2 of this AGREEMENT. 2.3. Nothing in this AGREEMENT shall prevent, limit, or otherwise interfere with the right of ]EMPLOYEE to resign at any time from his position with the DISTRICT, subject only to the provisions set forth in Section 3.3 of this AGREEMENT. 2.4 In the event written notice is not given by either parry to this AGREEMENT to the other parry ninety (90) days prior to the termination date as hereinabove provided, this AGREEMENT shall be extended on the same terms and conditions as herein provided, all for the additional period of one (1) year. This AGREEMENT shall continue thereafter for a one -year period unless ninety (90) days written notice is given prior to time of expiration. Section 3. TERMINATION AND SEVERANCE PAY: 3.1. In the event EMPLOYEE is terminated by BOARD before the expiration of the aforesaid term of employment and during such time that EMPLOYEE is willing and able to perform the duties of General Manager for the DISTRICT, then the DISTRICT shall pay EMPLOYEE a lump sum cash payment equal to the monthly salary of EMPLOYEE multiplied by the number of months left on the unexpired term of this AGREEMENT as set forth in Section 2.1 above, or an amount equal to the monthly salary of EMPLOYEE multiplied by _, whichever is less, in consideration of his past loyal service to the DISTRICT; provided, however, that in the event EMPLOYEE is terminated because of his conviction of any illegal act involving personal gain to himself, or conviction of a crime of moral turpitude, the DISTRICT shall have no obligation to pay the aggregate severance sum designated in this paragraph. 3.2. In the event BOARD at any time during the term of this AGREEMENT reduces the salary or other financial benefits of EMPLOYEE in a greater percentage than an applicable across- the -board reduction for all DISTRICT employees, or in the event 2 BOARD refuses, following written notice, to comply with any other provisions benefiting EMPLOYEE herein, or EMPLOYEE resigns following a suggestion, whether formal or informal, by the :BOARD that he resign, then EMPLOYEE may, at his option, deem his employment with the DISTRICT to be "terminated" as of the date of such reduction or such refusal to comply within the meaning and context of the severance pay provision set forth in Section 3.1 above. 3.3. In the event EMPLOYEE voluntarily resigns his position with DISTRICT before expiration of the aforesaid term of employment, then EMPLOYEE shall give the BOARD ninety (90) days notice in advance. In this event, EMPLOYEE shall be entitled to such severance compensation as set forth in the Personnel Rules of the DISTRICT, unless otherwise provided by the BOARD. Section 4.. SALARY: 4.1. DISTRICT shall pay EMPLOYEE for his services rendered pursuant to this AGREEMENT an annual base salary of $ beginning November 26, 2007, payable in installments at the same time as other employees of DISTRICT are paid. 4.2. During the term of this AGREEMENT, EMPLOYEE shall be entitled to increases in said base salary and/or other benefits in such amounts and to such an extent as BOARD provides similar consideration granted to other employees of the DISTRICT. However, the BOARD may provide additional compensation to EMPLOYEE over and above those amounts. 4.3. During the month of November 2009, the District agrees to reopen this Agreement for a review of the Employee's annual base salary. Section S. ADMINISTRATIVE LEAVE: It is recognized that EMPLOYEE must devote a great deal of his time outside normal office hours to business of DISTRICT, and to that end EMPLOYEE will be allowed ten (10) working days administrative leave per year. This leave is non - accumulative. Section 6. AUTOMOBILE ALLOWANCE: 6.1. During the term of this AGREEMENT, the DISTRICT shall provide EMPLOYEE; an automobile allowance of $1,000.00 per month, payable monthly for use of EMPLOYEI''s personal vehicle on DISTRICT business. The automobile allowance includes full compensation for all costs, depreciation, operation, maintenance and repairs, insurance, S gasoline, tires and oil, and all other incidental expenses associated with the operation of EMPLOYEE's personal automobile on DISTRICT business. 6.2. The EMPLOYEE shall, at his sole expense, acquire and maintain in effect at all times during the term of this Agreement automobile insurance, in a form acceptable to the BOARD, covering; all motor vehicles operated by the EMPLOYEE while on DISTRICT business and providing liability limits for bodily injury and property damage of not less than $500,000, and uninsured and underinsured motorist coverage of at least $500,000, combined single limit per occurrence. The EMPLOYEE stipulates that the insurance required under this Paragraph shall be primary as respects the DISTRICT and its officers, directors, and employees, and that any and all other coverage that may be available to the DISTRICT is excess and noncontributory. Section 7,. PROFESSIONAL DEVELOPMENT: 7.1. BOARD agrees to budget and DISTRICT shall pay the professional dues and subscriptions of employee necessary for his continuation and full participation in national, regional, state, and local associations and organizations necessary and desirable for his continued professional participation, growth, and advancement, and for the good of DISTRICT. 7.2. BOARD agrees to budget and DISTRICT shall pay the travel and subsistence expenses of EMPLOYEE for professional and official travel, meetings, and occasions adequate to continue the professional development of EMPLOYEE and to adequately pursue necessary official and other functions for DISTRICT as approved by the BOARD. 7.3. BOARD agrees to budget and DISTRICT shall pay for the travel and subsistence expenses of EMPLOYEE for short courses, institutes, and seminars that are necessary for his professional development and for the good of DISTRICT. Section 13. GENERAL EXPENSES: BOARD recognizes that certain expenses of a non- personal and general job- affiliated nature are incurred by EMPLOYEE, and DISTRICT hereby agrees to reimburse or pay said general expenses according to vouchers presented by EMPLOYEE. The DISTRICT's accounting department is hereby authorized to disburse such monies upon receipt of duly executed expense vouchers, receipts, or statements. 10 Section 9. VACATION AND SICK LEAVE: 9.1. Upon execution of this AGREEMENT, EMPLOYEE shall be credited with the aggregate arnount of unused vacation and sick leave due the EMPLOYEE. 9.2. EMPLOYEE shall continue to accrue and have credited to his personal account vacation and sick leave in the same manner and amounts as provided by the DISTRICT. EMPLOYEE shall not be entitled to accrue more that sixty -five (65) days of vacation. The :DISTRICT shall pay EMPLOYEE for any unused vacation accrued to EMPLOYEE above the aforesaid amount as of July 1 of each succeeding year. 9.3. Upon termination of employment as provided in Section 3 of this AGREEMENT, EMPLOYEE shall be entitled to payment of all accrued but unused vacation leave and sick leave at the rate of compensation in effect at the time of termination in conformance with current DISTRICT policy. 9.4. DISTRICT shall provide hospitalization, surgical, and comprehensive medical insurance for EMPLOYEE and his dependents and to pay the premiums thereon equal to that which is provided all other DISTRICT employees. Section 10. RETIREMENT SYSTEM: EMPLOYEE shall be covered by DISTRICT's retirement system in the category of General Manager in accordance with the terms and conditions thereof. Section 11. SUBSEQUENT EMPLOYMENT: In the event EMPLOYEE leaves his employment with the DISTRICT or retires during the term of this AGREEMI3NT, EMPLOYEE agrees to refrain from working for any vendor, consultant, or contractor currently doing business with the DISTRICT for a period of one (1) year. Section 12. OTHER CONDITIONS OF EMPLOYMENT: The BOARD shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of EMPLOYEE, provided such terms and conditions are! not inconsistent with or in conflict with the provisions of this AGREEMENT or applicable law. Except as herein provided, all other provisions of the ordinances, resolutions, and regulations and rules of the DISTRICT relating to vacation and sick leave, retirement and pension system contributions, holidays, and other fringe benefits and working conditions, as they now exist or hereafter may be amended, also shall apply to EMPLOYEE as they would to other employees of DISTRICT, in addition 5 to said benefits enumerated specifically herein. Section 121. GENERAL PROVISIONS: 13.1. The provisions contained herein constitute the entire agreement between the parties hereto concerning the subject matter hereof. 13.2. This AGREEMENT shall be binding upon and inure to the benefit of the heirs at law and executors of EMPLOYEE. EMPLOYEE may not assign or otherwise encumber this AGREEMENT in whole or in part. Any such attempted assignment or encumbrance shall be null and void. 13.3. If any provision, or any portion thereof, contained in the AGREEMENT is held to be unconstitutional, invalid, or unenforceable, the remainder of this AGREEMENT, or portions thereof, shall be deemed severable, shall not be affected, and shall, remain in full force and effect. IN WITNESS WHEREOF, the DISTRICT has caused this AGREEMENT to be signed and executed in its behalf by its President, and EMPLOYEE has personally signed and executed this AGREEMENT, both in duplicate the day and year first above written. n. DISTRICT Kip E. Sturgeon President, Board of Directors East Valley Water District EMPLOYEE Robert E. Martin 2007 Salary Survey - General Manager enc Annual Salary Phone _Comments -T- _A T 7San Bernardino City Water Pet 384-5305 minimums $146,358.7211 maximum; $204,499.43 i West —Valley -;Water —District I. minimum) $138,461.001 875-1804 FT, 987-25-91- - 987-2 '9 1 ... ... P j maximum) $168,303.001 'ate' District $247,250 00' Cucamonga County Water . District $247,250.001 Water District Western Municipal Water District $206,009.00 951-789-5000 1_7 5 'Yucaipa Valley Water District $161,246.00 797-5117 Elsinore Valley Water District $188,760.00 951-674-3146 Valley Water District $306,168.00 0_ 77650 224155 654-24 Manager eff.08/15/07 City _Victor —San Bdno Valley Water Cons Dist $160,000.001 1793-2503 !San Biin—oValley_ Municipal VY'D 387-9211 1 minimum l $200,280.001 1 maximum i $255,720.001 —,East Valley Water District $158,350.401 1,885-4900 EastValley Water District October 11, 2007 MEEMORAIMIDLIM TO: Bob M., Brian T., Ron B., Gerald S. FROM: Mike Maloney j1AV*ti SUBJECT: Surplus Equipment The following needs to be sold at public auction: One Water Truck (Unit #33) is a 1987 F700 Ford truck (VIN 1 FDPKA84N9HVA2993). This truck will not meet AQMD standards and would have to be re- powered with a new power source and this would not be cost effective. The cost would be approximately $45,000 - $50,000. It is my recommendation to sell this unit at public auction. Concur: C 9, Date: Gerald Sievers r; " Concur: JIR) ,' :� Date: ) o -) Z -gl Ron Buchwald Concur: -` Brian Tompws Concur: j/\ Bob Martin MM:& Date: Date: Association of California Water Agencies Since 1910 Cn LJ MEMORANDUM October 2, 2007 TO: ACWA MEMBER AGENCY PRESIDENTS AND GENERAL ]MANAGERS FROM: JAN JENNINGS, DIRECTOR OF ADMINISTRATION SUBJECT: NWRA CALIFORNIA CAUCUS BALLOTS: DUE DECEMBER 3, 2007 The nominations for the National Water Resources Association (NWRA) California Caucus positions have been submitted and now it is time for your agency to vote. Attached you will find a ballot and brief summary of each nominee's NWRA participation and background information. Please take a moment to read the information about each nominee and indicate on the ballot who your agency would like to have serve as representatives and alternates on the California Caucus. The three (3) individuals receiving the highest number of votes will serve on the Board of Directors. The two (2) individuals receiving the fourth and fifth highest votes will serve as alternates. Each member agencies is allowed one (1) vote. Return the completed ballot to the ACWA office no later than Monday, December 3, 2007. The results of the election will be announced on the ACWA Web site and published in a future issue of ACWA News. Please call me at the ACWA office at (916) 441 -4545 if you have questions or would like additional information. Thank you for your careful consideration and participation in this election. Your voice will help ensure the enactment of sound water policy decisions and regulatory measures. ii Attachments F.i "sa }..cT.. v' .,: �.81a6r ^.�:. ✓ "'c :'F'�'e_B =. � . `i,:c .... _ ;,r .,. 1 ?:'LC � .. t i � � - / � �� -. NWRA CALIFORNIA CAUCUS BALLOT Please vote for five (5) of the candidates listed below. The top three finishers will be full board members and the fourth and fifth will be alternates. (Per Board policy, the sixth position will be filled by the Federal Affairs Committee Chair) Wilmer "Will" L. Boschman Larry L. Russell, Ph.D., P.E. Semitropic Water Storage District Marin Municipal Water District David A. Breninger Planer County Water Agency Wayne A. Clark MVVD of Orange County Katy Foulkes East Bay MUD John P. Fraser El Dorado Irrigation District Lawrence Libeu San Bernardino Valley WCD Adrienne (Ann) Mathews Kern County Water Agency Terrance "Terry" M. King Chino Basin Water Conservation District Joseph L. Kuebler Eastern MWD Charles W. Muse Helix Water District Larry L. Russell, PH.D., P.E. Marin Municipal Water District Adeline M. L. Yoong Water Replenishment District of So. CA Incumbent: David A. Breninger, NWRA Board of Directors, 2001 -'07 John Fraser, NWRA Board of Directors, 2003 -'07 Lawrence M. Libeu, NWRA Board of Directors, 2001 -'07, Current NWRA Vice Pres. Alternate: Wayne Clark, NWRA Board of Directors 2006 -'07 Adrienne (Ann) Mathews, NWRA Board of Directors 2006 -'07 Signature ONE BALLOT PER AGENCY Title District Please return this ballot by Monday, December 3, 2007 to: ACWA Attn: Kelly Smith 910 K Street, Suite 100 Sacramento; CA 95611 -3577 Association of California Water Agencies , :,.�,. Since 1910 Gj ��s ►l: October 10, 2007 RECEUVED OAT 15 2001 East Valley Wafer Distract TO: ACWA MEMBER AGENCY PRESIDENTS AND GENERAL MANAGERS FROM: JAN JENNINGS, DIRECTOR OF ADMINISTRATION SUBJECT,: CORRECTION: NWRA CALIFORNIA CAUCUS BALLOTS DUE DECEMBER 3, 2007 By now you should have received a packet of information for the National Water Resources Association (NWRA) California Caucus election. The packet included the nominee background summary and a ballot. It has been discovered that information on the ballot was inaccurate. Nominee Lawrence Libeu was listed as being from San Bernardino Valley WCD, which is his former district. lvlr. Libeu's current district is Rancho California Water District, as indicated in the summary. Enclosed is a corrected ballot. As stated in the previous memo, the completed ballot is to be returned to the ACWA office no later than Monday, December 3, 2007, Please call me at the ACWA office at (916) 441 -4545 if you have questions or would like additional information. I apologize for any confusion this may have caused. Enclosure r55o Cia ICG of --aiixo n;atfia :--v F.pIdes `.i ' . �teEi. 91 6- .. NWRA. CALIFORNIA CAUCUS BALLOT ii',,r+ ...<Y make, ," :f Please vote for five (5) of the candidates listed below. The top three finishers will be full board members and the fourth and fifth will be alternates. (Per Board policy, the sixth position will be filled by the Federal Affairs Committee Chair) Wilmar "Will" L. Boschman Semitropic Water Storage District David A. Breninger Placer County Water Agency __Wayne A. Clark MWD of Orange County Katy Foulkes East Bay MUD John P. Fraser El Dorado Irrigation District Adrienne (Ann) Mathews Kern County Water Agency Larry L. Russell, Ph.D., P.E. Marin Municipal Water District Terrance "Terry" M. King Chino Basin Water Conservation District Joseph L. Kuebler Eastern MWD Charles W. Muse Helix Water District Lawrence Ubeu Adeline M. L. Yoong Rancho California Water District Water Replenishment District of So. CA incumbent: David A. Breninger, NWRA Board of Directors, 2001 =07 John Fraser, NWRA Board of Directors, 2003 -'07 Lawrence M. Libeu, NWRA Board of Directors, 2001 -'07, Current NWRA Vice Pres. Alternate: Wayne Clark, NWRA Board of Directors 2006 -'07 Adrienne (Ann) Mathews, NWRA Board of Directors 2006 -'07 ONE BALLOT PER AGENCY Signature Title District Please return this ballot by Monday, December 3, 2007 to: ACWA Attn: Kelly smith 910 K Street, Suite 100 Sacramento, CA 95814-3577 Bill George - President Division 3 George W. Osborne Vi,'- President Division 1 Ell Oral", quirdu � n, ' tflc.] FJ In reply refer to: M0907 -058 / SMC0907 -009 October 4, 2007 RECEIVED ®ICfi 9 2008, Mr. Robert E. Martin East Valley WD East Infl r "stator ;,i3'1'tf ^! PO Box 3427 San Bernardino, CA 92413 Subject: John P. Fraser, Nominee to NWRA Board of Directors Dear Mr. Robert E. Martin: fine D. Deister General Manage; 'Thomas D. Cumpston Genera' Counse! El Dorado Irrigation District (EID) has nominated Board member John Fraser to continue to .serve on the National Water Resources Association (NWRA) Board of Directors. Many water professionals and board members across California have known John for a long tithe, beginning when he served for 20 years as the Executive Director and General Counsel for ACWA. His considerable skills and experience have earned him many honors and awards, includi ig the NWRA Water Leader of the Year, NWRA Distinguished Service, NWRA President's Commendations, and the U.S. Bureau of Reclamation's Distinguished Service. Director Fraser was elected to the EID Board in 2001, has served as Vice President and President, chairs the Legislative and Legal Affairs Standing Committee, and is the Vice Chair of the :Finance, Rates and Charges Standing Committee. Western water issues today are more challenging than ever. It is vitally important that California has knowledgeable and experienced representation on the NWRA Board. Director John Fraser has demonstrated his ability, dedication, and commitment to serve the water users of the state. 'We ask for your vote to re -elect John Fraser to the NWRA Board of Directors, representing ACWA and the citizens of California. Sincerely, s Bill George Board President ADD /dk:krc 1 d Ane D. Deister General Manager U Z O U. J 34 cc z i C: Cl Z. Cl , ij co 4; al LLI L.' C: 2p 0 Z n 0 x 0 Q z 0 a U Q IL ♦ a o c O Q •U r W w O O N a7 mO ld2 o s w CD E O O C> co 75 co 'E fn co V 0 d N W Q co a) a UU)) N C 0 E i N O O � O E Q O ES O�C3 O N N 4 oZf N > co >, U- 0) a) c Q L m ow U) 0)wQ c E m W ca aa))U O )`OZ OU) Q U I?`o E O L_ E — c U U 4 QUA cw am ) E x U) O a) as �= — CZ O O y L N a L as 0) (D > .2 >, >, O E O ?Ow .-. Vim'cq i c 0 ♦ a o c O Q •U r W w O O N a7 mO ld2 o s w ♦ ♦ ♦ e ♦ e o m T O E N N CD O D rzO €o ".> -.E0 Q ro Oas cEEU� Zmo)cca r Q � Q a) mrr _0 QEEZ o a) CU < > Q O as E E U E T c N O N > O (D N < W< 0 o e e b CD T � C> E cc m fn co m O W E Q) b O Qi E � co J Q a N V Q U 'E 0 O U) Z N m Q O L c OU L _ `OE c O O E O E . ¢w O O �'t > O fa O L UPQ O O co O O} E T E U W _U O 8 d.0 Q U cao =, LL 0 O O E j cm Cn N C O Q L O CD CO E cu O co > E O a) m .N.. co c �o� �QN Q `> ¢ 0 Co( � o � t6 m O) O i ': U J O L O O O W aQ �� E �o m E EQEE 0 E ° � o� ma)a) _[EEa) c a Q E? m o U E a O UUi�y•` —a'a � E = ca Eco � EU� o o x O� a) ca C7aQUmmw2UmcoN ♦ ♦ ♦ e ♦ e o m T O E N N CD O D rzO €o ".> -.E0 Q ro Oas cEEU� Zmo)cca r Q � Q a) mrr _0 QEEZ o a) CU < > Q O as E E U E T c N O N > O (D N < W< 0 o e e b CD b � � C> O 00 O y O O a) (D ' 'i U X and 7 E— cm D) N W 0 0( E C C Q) b o�Q Voc � ca Qi n" o e N O to W crs E c C � f E U a) CD O N E c a °U €ccCKS U =5 c ro U U E W (a(DOCc U�¢ cEQZ 00Uc>5i g -0 >1 E < C N ZZUC m e o e o 0 CD C> O 00 O y O O a) (D ' 'i U X and 7 E— cm D) N W 0 0( E C C �¢� o�Q Voc � ca n" Co CD vOi d •��O E co ca _ a U) L= O O U) O Q as E_ O E o 0 0 � •> ca ca N ¢� ,x... N O —ca 'OZ o C q> (D Q) ) co r c LL 06 ca C) co a ca ro CU — EN ° N m o cz O �0 "O SO S O)O'O OQ.� C C cis � 0 U) U Co . 0 O L E0 -a 0-() — aU asE N s U O O E Z c m£ E O m 0 (D = O N '� O O•N -0 CL twi a°i E Il 20 W 8 d.0 Q U cao =, LL 0 o e N O to W crs E c C � f E U a) CD O N E c a °U €ccCKS U =5 c ro U U E W (a(DOCc U�¢ cEQZ 00Uc>5i g -0 >1 E < C N ZZUC m e o e o 0 b � U� o c� a: ®O Ce M Co G: Q U C1 0 LL I � eo Z•;. 5. va LU LL! 6� co C N O Q C O N m N U L .O, w O 3U c o U Cf. O C L N U '0 co U O (+C Q 'yi 11 O) N E O O O o E E co n p Co �2 .0 O N OCU C ? p J U > O ' 0 V Ui O) N a) ?T > L y N Q - a) O ❑ O, O � .8 m Q U C � cn a o � >> c CN O O ¢ O : m 'V O O aN ) ® c0 (6 0 Y O co O U ¢ � N Co n U OO C ) -j m 0 O Q as a)1a m 0 °c E dcnm U yU Q � 'll CD .;caCa)a o a E N C 'C N O U o � Q U O ¢ aS M O U (6 T t0 CZ > 'O O U) C O m a.E� m C° a N E °mcN`°'omxx'm as O ELCNO c" W o,- 8 ° oa) CCaE� —m- m x OUQ_QF �� p ssm�] �m 0 N o 0 c'J 0 W U¢.7NVy�Ea)ca�m a �EEEEEEEEE a? U b OO 0 0 N O N (°6 •°- a`) N `) ._O-• O O a) a) N a) N a) cG �QILNU�cnUO�<n¢Cn (6 0¢U- LL�cG��cG N N m c O ¢ O >_ 00 E E�¢ F- CL m = v 3 V mco m m¢za) o •Q, off_¢ � o a) LL LL 'O O E d •U N y ¢z �aEj J O B s i. c�a a`)�U fl- Q aoi co m •4? 3 (3 U C c Tc �5_1F 'S O Q Q U E C NQ CC T-T 0 U 77 i 7< i a) N p z C U¢ asz z z zcnQ o e e e o e o 0 i 6 e ° C9 5 N z �8 Si! m c u e 2-1 0 � �® 5Q U r2:1 V C1 Q `—i L 0 ® C3 LL c0 uu E9 Z;. iF.. C) cf) a' a) T n Q •.. Cn i U C U C) c °� U o c a) U O N 'y : a) w a) •Q to C: > '06 cC O N N C D Co d �. c r N 0 m oa o 4: �? X23 c m c �i c(ao cL =rn U apic��aaci oNC-pm E m a) E= a)s Q� n c�>Qy�oc) c D � s -�� w aa'i �U E w a cn cq—aa c`aU C)CC > U) p n o 1 aD c N c C9 � �i�V m0) d� U°' Q aQ0�>�a p U a;3o nw a`o�oro (a ccaoc accaE U 8 �O W .n a) N ..O a) N C E O �j "O Q CS pfl 0c n ca[L E m c m o2 > > c U OC U E O a) U (6 LL •L) _ p a) a) N O C ce 2) c:,2 pc a`)U 0 '= ¢ �U mj (E 72 � i5 .2 CL n m 0)° 2Q oU o U m c ro m� o � c a T- (110 U) >mam ¢ coa)W: �a Mi co a ¢oOc�asQ) EcQ >o ma)�wrotacpda`ai �� N ., 4) o U a) d 0 0 C aS CS U () N a) O a) N N p N_ V to U) cm QQCl) O.NW WUQCC C] U) (1) OCn JCSmO -rGQr s e ♦♦♦ e o s • e ♦ o sn d c ~0d C i Q z a d y a m oC ` � o E C N c Q � (o E Q - o U C m c o w C y °a) O U a ¢ m X o Na f o CD 0E LU IL O O i °m o �wU m z o � CL > ac "�Q co )= ca z a) s C a T p R O m T Z C2 C2 O a) 65 U O co o a) > z m O U z C O r Ca O� m O t E a a N aS O >�NrnE>C �> (OD >CC>c Er- p O U C3 R% 00 7 W a) a)> N +. Z Z ¢UCn NZU(n OCnZcGQ n 0 0 0• o o e o o 2 uj F Zc o ��® fu 0 cn D 0 fQ V Q z ii O LL J Q V a. ®a ME Co M U) C� L� LTJ L� uu uu 6� •m N N O to N � R L d O C T L N N CD CD V (6 a) 0 0 C N " v C Q O O 0 O 3 IL 0 E c cts N N C: 00 co � w O Q lL cz 0 N N 'D E C U N C N CTJ "T" .- a a) O O m rot�3 `�y E - Y C' f° E E cP O UN E am B UD <D ED p O CES U) C O O c co Os 0 p pmQ-O N UOY =p'O 0'6 U >, -C _J U) Ri O CO p U N N g w ID C N.J -mom ED 0 ... CV 0)> W > co " O C a) N C -O N O a) O R$ `� p Li i •- C C •� 0 0 N 0 C N O p O 3= D + _CSU Q�Ei C ) 'O O N �NEEEcp Rio C E U > EY O O E D-u) C C- p N R a) U)QLTIQni OWWO0N000 C U) m O G E N U) (D U_ N m p i N C c N e 3i � O C O to N � R L d O 41 CD V a m Q�°�Q ti ® m a� U) (D O 41 V O N C Q O O 0 O 3 a) O c CD I N c > O IL C iL O U Rt U.. C U a) o 'y c N O a) p U) C O O N U) C Os /� LV E E Q O =5 ° C O O U-0 Co rr W (7 U� coca) c 2C: Z C a) U C .�- C N ;.., O Rio C LL O >a N C C- p N R a) W 9 C U) m O G E N U) y C 0 E ����EEa)i�RSC� E L CO V E T p w- p U a) CO a �0 \wom Jm . <0 ti ® m a� k{ Uja \] ]§ in k KL E E 0 & cn kk =- gk\ [ (D \ 5 ° 2 \ j +I) 0) a -® * ( ® E c R \ ( \ # - \ \ § { 7 \ .\\\ �� jf \\ )®f §/ \ Gg %§t \\/ \_ \2 }g5» yo °& g0 00 »{© \ \ G\ /£e�=2 %Mo }\\ \% 5/ \606/6 a° \ E § °3§= k k� % \\± ©a.- \\ \) 2p� 22 &J \ §),u52$7 \ \k} - }i §)¥)qf, }mm \ }g6 2-20 =E %=`� CD -0 C :'- \f \ \//c «!o$@a< - /3 / `®®- /$*2£u0LLLL eo - -o= I ,>c §721= V _ � , cro — Q G �� Z -0 O LL U d| § & _ \ lui Z co CL CL Z;= \ \ z z k{ Uja \] ]§ in %22 KL E E 0 ° kk =- gk\ > *)d 2 \2t cc rR% e$&3 )§$/ %?)/ EastValley t*oWater District October 17, 2007 1V�.ElV1i0FA14DUM To: Board of Directors From: Robert Martin, General Manager Subject: Committee Meeting Minutes During; our last Board Meeting (October 91h) a discussion took place regarding; the Board's Committee structure and the procedures by which each Board member may participate in the process. In my opinion one way to address some of the concerns expressed is to make sure that each Board member is fully informed regarding the business that each committee is conducting. For this reason staff will begin forwarding meeting notices to each Board member when a standing committee meeting is agendized. A copy of the draft meeting minutes will also be provided to each Board member following a standing committee meeting. Please keep in mind that these are "draft" meeting minutes and may be subject to change. These will be presented in the Board Packet under Committee Reports. This will allow for questions and/or comments to be voiced by any Board member. Accordingly, I have attached a copy of the draft minutes from the ]Budget Committee, which recently met on October 10th. I trust these new procedures will be beneficial for the entire Board. Subiect t2 Approval EAST VALLES.' WATER DISTRICT October 10, 2007 BUDGET COMMITTEE MEETING MINUTES PRESENT: Directors: Goodin, LeVesque ABSENT: None STAFF: Brian Tompkins, Chief Financial Officer; Eileen Bateman, Executive Assistant GUEST (S): None PUBLIC COMMENTS There being no verbal or written comments the public participation section was closed. MIDYEAR BUDGET REVIEW The issues regarding the District's Budget review were discussed at length. Director LeVesque inquired if changes related to the increased Federal Funding for Northfork was reflected in the budget. Mr. Tompkins stated that the increased Federal Funding for Northfork was not reflected in the budget. Director Goodin stated that it would be in the best interest of the District to implement a 2 to 3 -year capital program; that the operational plan is covered but he has concerns with capital improvements; would also like the District to look into alternate programs to format the District's Budget that interact with the current Excel format or just a new format all together; that the District needs to look into methods to cut capital projects; to implement a zero based budget process next year; that he concurred with Director LeVesque; that everything should be reviewed, including vendors who seemingly are always awarded contracts by the District. Director LeVesque stated that he also has concerns with the capital plans as well as the current Budget format; that he would like to see a 3 -year operating Budget and a 5 -10 year Capital budget; that in January the Board consider a rate and master plan review; review the east of city creek surcharge; conduct an energy efficiency study with an outside agency with an incentive program, he gave Pacific Utility Audit as an example; that he looks forward to reviewing the analysis or fleet maintenance costs; that he will want to review the entire set of plans for the new admin- building looking for areas to cut costs; that he would like staff to continue reviewing operating costs and look for ways to save money. Mr. Tompkins stated that he and his staff were developing a 3 -year format for the budget; that staff is using Excel programs to present the budget; that draft analysis had just been forwarded to the General Manager and that he would soon review it. No consensus position was reached by the Committee. The meeting was adjourned at 4:30 p.m. until the next scheduled Meeting. Robert E. Martin, Secretary 1 E:astValley eater District 3654 East Highland Avenue, Suite 18, Highland, CA 92346 P.O. Box 3427, San Bernardino, CA 92413 October 10, 2007 Assemblyman Bill Emmerson 10681 Foothill Blvd., Suite 325 Rancho Cucamonga, CA 91730 Dear Assemblyman Emmerson: Serving Our Community for Over 50 Years BOARD OF DIRECTORS Kip E, Sturgeon President Edward S. Negrete Vice President Donald D. Goodin Director George E. "Skip" Wilson Director Matt Le Vesque Director Robert E. Martin General Manager Brian W. Tompkins Chief financial Officer Ronald E. Buchwald District Engineer The East Valley Water District is a California Special District providing water and sewer service to the City of Highland and to the eastern portions of the City of San Bernardino. Approximately 80% of the Districts' water supply is obtained from the local groundwater basin. The remaining 20% is derived from surface water sources originating in the Santa Ana River as well as the State Water Project. We are very concerned with the recent events affecting the State Water Project. This imported supply of water plays a very important role in our Districts long term plans to meet our customer's needs. For this reason, the Districts' Board of Directors is supporting the Governors comprehensive water package and the Delta Vision Task Force process. We also firmly believe that some form of an isolated conveyance facility is desperately needed in the Delta. A second issue that has had a significant impact upon our operation is the recently adopted Perchlorate Rule in California. Approximately one -third of our Districts wells have been impacted by perchlorate. In response, the District has initiated a Perchlorate remediation project to safely treat all sources of supply that are affected. Unfortunately, it appears that the source of our Perchlorate contamination is from historic farming practices. We believe that imported fertilizer, used during the early part of the last century, is the source of the pollution. Without a readily identifiable responsible party, the cost of the treatment program will have to be borne by the Districts eusioomers. In art effort to minimize these costs, the District is pursuing a number of avenues to identify State and/or Federal programs to help pay for this project. With this in mind, one of our Directors was intrigued by a comment you recently made at a City of San <3emardino Chamber of Commerce meeting (7/'7 /2007 }. "t is my understanding i C 85 G — 19n9 r.: % u E (O'Jn) 88 -8986, Fax .909) 383 -143.: Acmmiscratlon (JO�j S.,o- 000.: -ax. I,.�.,.,j 38:., -073_ cngineeriny v aJ Guslomer Ser✓ice (909) 889 - 35'x-:. ax i909: 888-6 7 ° Finance (909) 3S"; 6433, Fax (9091 888-67:A'. EastValley t)*oWater District Assemblyman Bill Emmerson October 5, 2007 Page Two that you mentioned the possibility of developing federal funding for the treatment of perchlorate in this Basin's groundwater supply. We, obviously, would be very interested in any type of program to assist in perchlorate remediation. I would appreciate receiving any information you might have regarding the program you referred to at that Chamber meeting. Your help in this matter is greatly appreciated. If I can be of any help to you or your staff in this matter or in any other water related issue, please do not hesitate to call me. Very truly yours, Rob�artin, P.E. General Manager REM: etb PCease pMO us for The Bush ess Event of the Year The San Bernardino Area Chamber of Commerce symposium t" � 1!x:4 informative, Dly Has Something TO 0 , 1; Every SiZeO Morning Speaker: MqW Enita Etphir,� Wheatland, Cafif ornia Founder and owner of unity Forest Products without benefit of inheritance or financial assistance of relatives or spouse-She has sustained her business through adversity and economic ups and downs. Lunch Keynote Speaker. HueffHowser Entrepreneur, Businessman and ?efevision Personality The day's .events wiLL include Panel Discussions focusing on the foffowing topics: Sustainability urban Development e Environment /Creen Development Building e Safety Cross Generational Workforce- Personnel e WorVorce Development Purchasing Sma((BusinessAdvocate e Mfark -OinS Friday, 97 -oveinber 9, ^00; g:= O :2LM - 2 P -n( ? ational Orange Show - Damu s Building egg S. "E `Street, Sass Bernardino (Enter on ArrowheadAvem ie, Cate ?) f� j IT Cara; Zz nc�sed X,,VP card JiOZN T) J' 1f7 "irtlie 117te Business ChInate to 2008 _'rickets n $50.00 per person Phase list names on reverse 'ral+fes of 8 a $400.00 per table $ Please list names on reverse Booth a $450.00 (lnchnfes fnac" for 1) $ Stnf'Encfosed $ Sponsorships A.vai k.- Please w f909 /885 -7515 Na,ne Business name Address Email Credit C,,d.. ❑ grl$.2 O -MasterCard Name on card Signature _Nrase make diecks payable ro: S'R:7CC, 4t0. Box 658, San B,rnanfmo, C3 92402 Please RS'V by Monday, october29, 2007 ..; P.EC1AL► DI'STRICi „'/ ►RIB _ _. . 7 9 b f o4 00 V { v 7 j $PECIAlO STRICT AND CCAt Govfm ENT , `s IN ;TIT UTE':q. t February 7 -8, 2008 Government Iristitute P.O. Bm 2317, Vista, CA 92085-23 17 Standard Hilton Palm,Springs ResoKst N� U.S, Postage PAID Palm Springs, CA Rush Printing l' Aff WHO WILL BENEFIT? EXPERIENCED DIREGTORSsAND MANAGERS– an updated refresher seminar on running,an.effective agency. NEWLY- ELECTED OFFICIALS a must -attend seminar to develop essential. knowledge and skills. SENIOR MANAGERS AND STAFF -of special districts; cities, counties, and non -profit organizations. WHAT YOU WILL LEARN: Provides proven tools for dealing with the challenges facing . your local government agency. This seminar incorporates the latest information, techniques and insights for solving today's governance challenges. . SEMINAR VALUE PACKAGE: TOP -NOTCH SPEAKERS, experts in their respective fields; chosen, for their knowledge of California governments and their experience in working with special districts and local agencies. A COMPLETE CURRICULUM packed with up -to -date topical information relevant to local government. COMPREHENSIVE; PRACTICALHANDBOOK, containing materials from each presentation. Retail value $Too. , j CERTIFICATE PROGRAM, SPECIAL DISTRICT LEADERSHIP AND MANAGEMENT, representing over four decades of development in, response to continuing education needs. QUALITY RESORT-STYLE HOTELS AND AMENITIES, continental . breakfast, luncheon, and refreshment breaks included in seminar registration. >� QUOTES FROM PAST SEMINAR ATTENDEES: "The certificate program gives agood overview of all components of Special District Management " K.S., South Tahoe Public Utility District "This is a fantastic user friendly institute for the first time attendee!" D.R., Jurupa Area Recreation and Park District "These sessions have helped me enormously to understand and clarify my role, limitations and expectations as a newly elected official. " J.S., East Palo Nto Sanitary District `I've never found anything like this in a book or classroom. Specialized training for Special Districts. " '1'.B, Water Replenislunent District of Southern California "Brings clarity to a world of confusing regulations." RD., Calaveras County Water District "The Best Conferences, you can use the information not only as a Board Member, but in business life and personal life -" D.D., Vallejo Sanitation & flood control District 'Finally, a seminar where instructors are well experienced in their subject —would encourage attendance. " D.N., Lakehaven Utility District "This Governance Seminar provides valuable information for managers & board members of special districts. " B.H., Anderson - Cottonwood Irrigation District 'Thursday; F ebruElry 7, 2008 Friday, Feliruery 8,:2008 REGI51'i2AT101V & CONTINEiNTAL BREAKFAST �,. 'CONTINENTAL BREAKFAST T-45- B'i5 a Xn., PERSF0ECTIV'ES ; LAWi ' WHERESP,ECIAL DISTRICTS ARE'TODAY' WHAT YOU NEED TO KNOW ABOUT Thomas Vu, .California 'Special Districts Association "' LOCAL GOVERNMENT • Tracks.biston'kal cnticism of special dfstricts . Mark-Meydhoff, Liebert ,Cassidy Whitmore . •- Attempts at taking funds, consolidating, • Clarifying'the powers of the Boaidand the Agency , or privatization of districts • Avoiding conflicts of interest • Future of special districts .: " . Your personal:liability`as.a public official • Where does 'the Board.stop and "management'begin ?;. LEADIERSHiO: ., OVERVIEWOETHEBROWNACT ' .:" EFFECTIVEDISTRICLLEADERSHIP _;`: . '..- AND;PUBLICRECORDSAGT -, Glenn - M. Reiter, Glenn M: Reiter &Associates Jill Wrllis, Best Best and Krieger .; r Management andleadefship styles The intent and application of the Acts • Hov ✓the Board relate to thepublic, erriployees, •Recent changes and other governments. Practical aspects andhighlights' EDealing with complex issues, " „Recent court rulings • Working with disruptive; Boom membeYS HUMAN RESOURCES: 'PLANNING YOUR AGENCY'S FUTURE Robert Rauch, Rauch COmiminicaiion Consultants YOUR ROLE IN HUMAN RESOURCES : Creating a mission and a strategic ,vision Irma Rodriguez Moisa, Atlanson, Aadelson, for your agency Zoya, Ruud & Romo Identifying the priority issues' Labor and employment law issues ' Implementing. goals and objectives; the action plan Employer lialihtyforharassment Assuring,your agency's future • Labor ielations POLII.IGGSc CONfMLINICATION:, POLIYICAL ACTION =HOVV IT.:2AN HELP YOURAGENCYc BUILDING EFFECTIVE BOARD /MANAGER RELATIONSHIPS • . Richard W. Atwater,, Inland :Empire UtilitiesAgeney Robert Rauch,' Rauch .Commumcatrot.i,;Consultants Advocating'for local.govemrnent Role of the Director, role, of the manager - maintaining' Relationship to State issues. theTightbalance Staying in 1:une with Jegislation • Improving communications among, Board members - • LAFCOparticfpation andbetvieentheBoardana hemana er g • Collaboration and networking Settling diifierences and working together Grants BUILDING COMMUNITY SUPPORT Marti n Rauch; Communisation Consultarifs FINANCE: ,RaucS •`Gain pubbic support for controversial p'rojec'ts MANAGING YOUR FINANCIAL RESOURCES Turning the tide when your agencyis under attack Glenn M. Reiter, Glenn X. Reiter a Associates Dealing with vocal activist groups • Yourfiduciary responsibility in financial,oversight. Guidelines for working with the press • The job of the Board in financial management HOW DOES YOUR AGENCY MEASURE; UP? • The treasurer's job Speakers' Panel . • Budgets andfeporting • The Board's Tole in monitoring and control . SEMINAR ENDS: 4:30 P.M. NETWORKING RECEPTION: POOLSIDE, 5:00 -6:00 p.m. • Meet your fellow attendees while enjoying complimentary hors d'oeuvres. . Offet ReglATatio'n WORKm4OP Proposition z18::NoW Impsicts . Your Agericy More thiin"b4r Janet Morningstar; 8:3* zL in,- 12:3o:p.m • what thelavy says: alegal vievv Practical solutions forimplementing taxes; assessments,fees`and charges .. Noticing requirements, effective hearings. and meetings .. Educating your public, election mechanics, manacling tai data,: and. more... 2.5 MCLE.credits by the ,State "Par of California. t-. c ,ontmen>`al;rsreaKras>..:o:uv -o jv..a.ffr,: WORKSHOP 2 z, Ethies.1n Government J "' s Asa group, the faculty team has decades of real -world experience with hundreds of local Mark Meyerhoff, governments of all types and sizes throughout: California. RICHARD W. ATIMATER, is CEO /GM of the Inland Empire Utilities areas as the Ralph M. Brown Act, the Public Records Act, and the 8 3o a:m , T:z 3o p.m. Agency. He has over twenty years experience in water resources California Environmental Quality Act. Janet earned her JD from the . management and has pioneered many award- winning water projects University of Southern California. finarictaI requirements of AB 1234 (compensation and Expense Policies) • ;.� ,sNti Implementing. andnieeting the tnandafory + ethics requirements of AB 1234• F 3,5 MCLE'ciedits by the State Bar;of California:. „z FACULTY' Expert Speakers Share Their Knowledge and Experience Every member of our faculty is an active expert in a chosen field as a consultant, manager, or director. Asa group, the faculty team has decades of real -world experience with hundreds of local governments of all types and sizes throughout: California. RICHARD W. ATIMATER, is CEO /GM of the Inland Empire Utilities areas as the Ralph M. Brown Act, the Public Records Act, and the Agency. He has over twenty years experience in water resources California Environmental Quality Act. Janet earned her JD from the . management and has pioneered many award- winning water projects University of Southern California. and innovative water resource management programs. Prior to joining MARTIN RAUCH is a senior consultant with Rauch Communication the Agency, Mc Atwater was President of Bookman - Edmonston Consultants. He leads a team that develops and conducts customized Engineering, Inc., a water resources consulting firm. His previous strategic outreach programs for local governments across the state, . experience included General Manager of West and Central Basin as well as strategic planning activities. Municipal Water Districts, and managing the Resources Division ROBERT RAUCH is a senior consultant with Rauch Communication: for Metropolitan Water District of So. California. From 1961 to 1985, Mr. Atwater was the Assistant to the Commissioner of the Bureau Consultants. He.specializes in planning and implementing focused . public information programs, providing management consulting, and of Reclamation, Dept. of the Interior in Washington, D.C. conducting strategic planning retreats. With over 30 years experiences MARK MEYERHOFF, partner in the Las Angeles office of Liebert P 9 . Mr. Rauch has served as a consultant to the White House. .. Cassidy Whitmore, represents clients in all types of civil litigation, administrative proceedings and arbitrations. Mark regularly advises GLENN M: REITER is President of .Glenn M. Reiter &Associates, an and represents clients in all aspects of employment and traditional engineering, computer, and financial consulting firm. He has over 45 years experience in local government. Mr. Reiter has been a General labor relation matters. He develops and updates personnel rules, policies and ordinances for a number of public sector clients, and presents Manager, Chief Engineer and Director. He specializes in financial training programs and workshops for supervisors and managers. planning, the setting of rates and fees, including the financing of His legal expertise is in negotiations, disciplinary actions, litigation, capital improvements. labor relations, personnel rules audits and investigations. THOMAS VU is the Legislative Specialist and in -house Legislative IRMA RODRIGUEZ MOISA is an Attorney with Atkinson, Andelson, Advocate for the California Special Districts Association. At CSDA, he Loya, Ruud & Romo. She is an expert in handling employment provides policy, advocacy, grassroots mobilization, and regulatory discrimination, wrongful termination and sexual harassment lawsuits. support on special district and local government issues. Prior to CSDA, he worked on healthcare and smart growth policies, and also Irma hats experience with disciplinary hearings, arbitrations and negotiations on behalf of city and special district clients and also interned for an Assembly Member. Tom recently received his Master represents school districts and colleges regarding student suspension of Public Administration degree from the USC State Capital Center. and teachertermination issues. Irma has focused on representing . JILL WILLIS is a Partner with the law firm of Best Best & Krieger, public agency clients in litigation involving employment - related issues, where she is a member of the Special Districts Practice Group and including harassment, discrimination, First Amendment rights, the Natural Resources Practice Group. She does general counsel defamation and wrongful termination. work and also acts as special counsel on water rights issues for JANET MORNINGSTAR is in private practice DBA Janet Morningstar, numerous public agencies, including special districts, throughout a Law Corporation. She is general counsel for Rowland Water Southern California and on the Central Coast. In addition, she District and special counsel to Municipal Water District of Orange teaches courses on water law at the University of California, County, Previously, Janetwas a Partner with McCormick, Kidman Riverside Extension. Over the last several years, she has given at a variety of conferences throughout California on & Behrens, LLP. Janet has over 16 years experience in advising presentations governing bodies of local agencies and special districts in such ethical considerations for public agency clients and their counsel. HOTEL LODGING INFORMATION: Hilton Palm Springs Resort Hilton 400 E.Tahquitz Canyon Way, Palm Springs, CA 92262 Pntm Springs Resort Reservation Telephone No. 1- 800 -522 -6900 A special rate of $155 singleldouble per room per day has been negotiated for accommodations during the event and for three days before and after the event for reservations made by January 23, 2008 (please reserve early —THERE AREA LIMITED NUMBER OF ROOMS AVAILABLE). Mention SDI for special discounted rates. OPTIONAL RESORT VALUE PACKAGE FOR $7 PER ROOM, PER DAY INCLUDES: ® All local calls up to 30 minutes ■ Faxes — 5 incoming pages ($2.50 value) ® High Speed DSL Connection ($9.95 value) ® Self parking ($6.00 value) ® 2 for i dinner coupon at the Terrace Restaurant on selected entrees ($i5.00 minimum value) PROGRAM INFORMATION: EACH PARTICIPANT RECEIVES: Comprehensive Handbook, all class materials, continental breakfast, breaks and lunch during Seminar. Lodging and other meals are not included. CERTIFICATE PROGRAM: You are automatically enrolled as a candidate for the Certificate Program in Local Government Leadership and Management, which is awarded upon completion of all three seminars. Seminars can be taken in any order and completed within a three -year period. GUEST MEAL PACKAGE: Guests may join you for all meals. A separate meal package for guests must be purchased. TEAM DISCOUNTS: Attendance of groups of four or more from the same organization, enrolling for the seminar at the same time, are entitled to a io% discount. Not good with any other discounts (including early registration discount). CANCELLATIONS AND REFUNDS: Written cancellation received on or before January 7, 2oo8 will receive a refund, less a $50 processing fee. Full payment is required if cancellation is received on or after January 8, 2008 — no refunds and no credits for a future event will be granted. However, substitutions may be made at any time. $25 fee charged for checks returned for insufficient funds or for credit cards denied. SDI reserves the right to make changes in programs and speakers, or to cancel programs, when conditions beyond its control prevail. Every effort will be made to contact each enrollee if a program is cancelled. If a program is not held, SDI's liability is limited to the refund of the program fee only. Special thanha• to the Palnt Springs Desert Resorts Convention and fttors dulhority for use oJ'pholm on this page and the toner. EMIM PO Box 2317, Vista, CA 92085 PHONE: $00/457-0237 or 76o/643 -1760 FAX: 76o/643 -171511 www.sdbmi.rnm a spcciistilnt @aol.com PLEASE FILL OUT COMPLETELY Name: Title: Agency: _ Mailing Address: 9 City: state: Zip: Phone: Fax: _ E -mail: _ Website: Guest Narne: SPECIAL NEEDS: ❑ Wheelchair Access ❑ Visually Impaired ❑ Hearing Impaired ❑ Vegetarian Meals Other_ _ METHOD OF PAYMENT: Payable to: Special District Institute ❑ ChecI( Enclosedfor $ ❑ Please Invoice PO# ❑ Charge: F-1 AMEX F-1 Visa ❑ M/C Card # (16 numbers +3 numbersMedm the signawre aae2. on back of credit card) Billing Address for Card: _ City: State: Zip: Signature: Expiratii)n Date: -- FOR OFFICIAL USE ONLY Data R'vd verify DB Code N Can? Inv. B Net Paid Ltr. Sant DB Final GOVERNANCE SEMINAR ENROLLMENT FORM February 2008 a Palm Springs, CA (A) ❑ $56o SPECIAL DISTRICT GOVERNANCE SEMINAR (Two days) (B) ❑ $725 GOVERNANCE SEMINAR+ SATURDAY WORKSHOP: (Choose one workshop) ❑ Proposition 218 Workshop -OR- ❑ Ethics In Government Workshop (C) ❑ $175 SATURDAY WORKSHOP- ONLY: (Choose one workshop) ❑ Proposition 218 Workshop -OR- F] Ethics In Govemment Workshop ORDER HANDBOOKS ONLY: Shipped the week after the event. Please add 8.25% tax + actual shipping amount (D) ❑ $65 Order Handbook Only - Proposition 218 Workshop (E) ❑ $65 Order Handbook Only - Ethics In Government (F) ❑ $loo Order Handbook Only- Special District Governance Seminar MEALPACKAGES: (G) ❑ $ 35 Guest Meal Package for Workshop (H) ❑ $ilo Guest Meal Package for Seminar SUBTOTAL FROM ABOVE: 5U6T the "se A o'ri .early SUBT .AbrE Janli 7,ZUU81 Not valio.on ,WorKsnops -ogry. CERTIFICATION FEE ($35 - only if applicable) $ ® TOTAL REGISTRATION FEE: $ 9 7,ZUU81 Not valio.on ,WorKsnops -ogry. CERTIFICATION FEE ($35 - only if applicable) $ ® TOTAL REGISTRATION FEE: $ THE CERTIFICATE PROGRAM ➢%SHAT IS THE CERTIFICATE PROGRAM? The Certificate Program in Special District Leadership and Management is an intense seminar series designed specifically for Special District and Local Government Board Members, Managers and Staff, representing over two decades of development in response to the continuing education needs. WHAT IS THE CURRICULUM? The program curriculum consists of three fundamental seminars: 1) Special District Governance 2) Special District Administration SDG 3) Special District Finance ^ Seminars cover a depth of topics, including: SDA: SDF_- a) Leadership f) Government and Legislation b) Human Resources Policy g) Legal Aspects c) Community Relations h) Communication d) Organization and Management i) Board Administration e) Financial Management & Control j) Intergovernmental Relations The Certificate in Special District Leadership and Management is awarded upon successful completion of all three seminars (within three years). WHAT ARE THE BENEFITS OF THE CERTIFICATE PROGRAM? The concentrated course -work is designed to make you aware of your leadership responsibilities, as well as obligations and liabilities as public officials. The program teaches you what is expected of you and how to do it. Whether you are new or experienced, you will benefit from the fast -track guidance of experts who have been there and know what to look for. The Certificate is recognition that you have received the latest specialized training by leading professionals in the field of Special Districts and Local Governments and of your commitment to district management. 1WHAT TYPE OF MATERIALS? At each seminar, every participant receives a comprehensive: workbook, which contains outlines and illustrations of each class presentation. Workbooks are updated and re- written for each seminar and contain the latest up -to -date material available. Handouts, in the form of charts, graphs, worksheets, sample reports and reprints, complement the class presentations. The Institute maintains a database and library of reference works for use by the instructors and the certificate program attendees. The certificate program is intended to introduce attendees to the reference resources available to them as part of the Institute's program of continuing education. WHO ARE THE FACULTY? Our panel of instructors is chosen for their expertise as policy - making board members, for their knowledge of California government, and for their experience in working with Special Districts and Local Governments. As recognized experts in their fields, the faculty is drawn from the ranks of practicing directors, managers, attorneys, CPAs and consultants to Special Districts and Local Government. What differentiates the Institute's instructors is that they are practicing professionals working with Special Districts and Local Government day in and day out. The instructors' mission is to share real world problems and solutions. Their job is to coach you on your responsibilities, what you need to know, and how to do it. WHEN IS THE PROGRAM OFFERED? The three seminars are scheduled at times of the year appropriate for the subject matter and Agency agendas. The seminars are held at hotel locations where the atmosphere and accommodations are most conducive to an educational format. The format consists of two -day intensive sessions to minimize time away from your agency and job. The seminars are listed on our annual calendar (enclosed and on our website); and notification mailers are sent in advance. HOW DO I GE.T STARTED? There are no formal prerequisites for program participation. The three component seminars are scheduled at different times throughout the year and may be taken in any order. The Certificate Program can be completed in less than one year and must be completed within three years. By attending any of the three seminars, you will automatically be enrolled as a candidate for the certificate program. and yout progress will be monitored for you. There is a $35 administrative fee that will be charged with the enrollment for the third Seminar. r Special District and Local Government Institute O PO Box '_31 7 0 Vista. Ca. .92085 ,I 800 - 457 -0237 0 760 -613 -1760 ® 760 -6 =3 -1761 (Pax) 0 sucdislinriraoi . cem o www.sdbmi.com !.