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Agenda Packet - EVWD Board of Directors - 12/22/2008
E:astValley Water District 3654 HIGHLAND AVE., SUITE #12, HIGHLAND, CA SPECIAL BOARD MEETING December 22, 2008 3:00 P.M. AGENDA --------------------------------------------------------------------- "In order to comply with legal requirements for posting of agenda, only those items filed with the District Secretary by 10:00 a.m. on 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 Public Comments CONSENT CALENDAR 2. Approval of Board Meeting Minutes for November 25, 2008 3. Approval of Board Meeting Minutes for December 9, 2008 4. Approve Ordinance No. 374 — An Ordinance of the Board of Directors of the East Valley Water District establishing Guidelines for the Conduct of its Public Meetings and Activities 5. Accounts Payable Disbursements: Accounts Payable Checks 4217529 through #217769 which were distributed during the period of December 5, 2008, through December 17, 2008, in the amount of $888,107.82 and Payroll Checks for the period ended November 30, 2008 and December 5, 2008 and included checks and direct deposits, in the amount of $6,858.51, and $189,941.32 Total Disbursement for the period $1,084,907.65 OLD BUSINESS_ 6. Headquarters Project Review and Update 7. Discussion and possible action regarding the Fourth Amendment — Agreement to Develop and Adopt an Institutional Controls Groundwater Management Program 8. Discussion and possible action regarding Professional Services Agreement between East `Valley Water District and Cordoba Corporation 9. Discussion and possible action regarding the Districts audited financial statements for 2007/2008 10. Discussion and possible action regarding the San Bernardino Valley Municipal Water Districts irrigation efficiency program 11. Discussion and possible action regarding Plant 134 upgrade and expansion final design proposal from CDM 12. Discussion and possible action regarding nomination for regular special district member of the Local Agency Formation Commission 13. Review and accept financial statements for the period ended November 30, 2008 14. Discussion and possible action regarding sponsorship opportunity for the 121' Annual Inland Empire Annual Survey (WRI) REPORTS 15. General Manager / Staff Reports 16. Consultant Reports 17. Committee Reports a. Legislative (Standing) b. Budget (Standing) — Meeting held on December 8, 2008 c. Public Outreach (Standing) — Meeting held on December 12, 2008 d. Headquarters Committee (Ad -Hoc) 18. Oral comments from Board of Directors MEETINGS 19. CMUA's Capital Day, Hyatt Regency Sacramento, January 26, 2009 ADJOURN ------------------------------------------------------------------------- Parsuant 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. 2 Subiec� t to ADproval EAST VALLEY WATER DISTRICT November 25, 2008 REGULAR BOARD MEETING MINUTES The meeting was called to order at 2:30 p.m. by President Goodin. Mr. Martin led the flag salute. PRESENT: Directors: Goodin, LeVesque, Morales, Sturgeon, Wilson ABSENT: None STAFF: Robert Martin, General Manager; Brian Tompkins, Chief Financial Officer; Ron Buchwald, District Engineer; Eileen Bateman, Executive Assistant; Cecilia Contreras, Administrative Office Specialist II LEGAL COUNSEL: Steve Kennedy GUEST (S): Jo McAndrews (McAndrews & Boyd), Becky Kasten (EV WD), Gary Sturdivan (EV WD), Charles Roberts (Highland Community News), Larry Malmberg, Robert Reeb (Reeb Government Relations, LLC), Kurt Yeager (Stradling, Yocca, Carlson & Rauth), Michael Cates (CDM) PUBLIC PARTICIPATION President Goodin declared the public participation section of the meeting open at 2:31 p.m. There being no verbal or written comments the public participation section was closed. APPROVAL OF AGENDA M/S /C (Sturgeon- Wilson) that the November 25, 2008 agenda be approved as submitted. (Minutes 11/25/2008) etb 1 APPROVAL OF SPECIAL MEETING MINUTES FOR APRIL 15, 2008 M/S /C (Wilson - Morales) that the April 15, 2008 Special Board Meeting Minutes be approved as submitted. APPROVAL OF BOARD MEETING MINUTES FOR OCTOBER 28, 2008 M/S /C (Wilson - Morales) that the October 28, 2008 Board Meeting Minutes be approved as submitted. APPROVAL OF SPECIAL BOARD MEETING MINUTES FOR OCTOBER 30, 2008 M/S /C (Wilson - Morales) that the October 30, 2008 Special Board Meeting Minutes be approved as submitted. APPROVAL OF SPECIAL BOARD MEETING MINUTES FOR NOVEMBER 3, 2008 M /S /C (Wilson - Morales) that the November 3, 2008 Special Board Meeting Minutes be approved as submitted. RESOLUTION 2008.23 — A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ACCEPTING CONVEYANCE OF PIPELINE .EASEMENT FROM CENTERGATE SAN BERNARDINO, LLC M/S /C (Wilson- Morales) that Resolution 2008.23 be approved. RESOLUTION 2008.24 — A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ACCEPTING CONVEYANCE OF PIPELINE EASEMENT FROM CENTERGATE SAN BERNARDINO, LLC M/S /C (Wilson - Morales) that Resolution 2008.24 be approved. DISBURSEMENTS M/S /C (Wilson - Morales) that General Fund Disbursements #216942 through 9217334 which were distributed during the period of October 22, 2008, through November 19, 2008, in the amount of $1,662,806.70 and Payroll Fund Disbursements for the period (Minutes 11/2512008) etb 2 ended October 24, 2008 and November 7, 2008 and included checks and direct deposits, in the amount of $194,215.03, and $178,361.94 totaling $2,035,383.67 be approved. ]HEADQUARTERS PROJECT REVIEW AND UPDATE The General Manager stated that this item will be discussed within Item #25, Committee Reports. DISCUSSION AND POSSIBLE ACTION REGARDING SPECIAL COUNSEL AGREEMENT BETWEEN EAST VALLEY WATER DISTRICT AND STRADLING YOCCA CARLSON & RAUTH The General Manager stated that the agreement is to authorize Stradling Yocca Carlson & Rauth to prepare appropriate documents for the issuance of Certificates of Participation (COP'S); that this agreement needs to be approved to move forward on the financing package; that this item is in the budget under capital projects. Legal Counsel advised that Exhibit A, paragraph 3 be changed to fit the District policy; that it has been a policy to avoid binding arbitration; that he would like direction from the Board. Mr. Yeager stated that if Exhibit A, paragraph 3 were to be objectionable then that section and Paragraph 6 of the agreement will be withdrawn from the agreement; that this agreement would cost approximately $70,000. Director Sturgeon stated that he would like this to go to the Budget committee for review before the Board approves. Director Wilson stated his concern whether there was enough time to have the Budget committee review. Director Morales inquire on the cost to implement this agreement; that he would also like to have this agreement go to the Budget committee for review due to the language in question. Director Goodin suggested that the Board have legal counsel change the language in question for this agreement M/S /C (LeVesque- Wilson) to approve the Special Counsel Agreement between East Valley Water District and Stradling Yocca Carlson & Rauth with the suggested amendments from legal counsel. (Minutes 11/25/2008) etb 3 RESOLUTION 2008.25 — A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTICT REGARDING ITS INTENTION TO ISSUE TAX - EXEMPT OBLIGATIONS Director Morales inquired if legal counsel had reviewed this resolution. The General Manager recommended that the Board approve the resolution. Director Sturgeon stated that a correction needed to be made on page 4. It should state County of San Bernardino and not County of Riverside. M/S /C (Sturgeon - LeVesque) that Resolution 2008.25 be approved with the recommended change. PRESENTATION FROM ROBERT REEB REGARDING 2008 ANNUAL REPORT AND STATE LOBBYING ACTIVITIES Mr. Reeb presented a review of his activities to date and future Legislative Bills that may affect the District; that he will return to discuss more issues; that he has work relations with lobbyists from ACWA, CSDA and CMUA; that amended bills updates are posted on the capitol track website; that conservation is a local control issue. Director Sturgeon inquired about Mr. Reeb's relations with key members of ACWA, CSDA and CMUA; he also stated that Pepsi distributions proposed to use 20% less water by 2015. Director LeVesque inquired about conservation as it relates to other agencies. Director Morales stated that fees will be a concern in the future at a state level; that he looks forward to continue working with Mr. Reeb; that the District be active in all bills from the legislature. Vice President Wilson voiced his concerns regarding the Agriculture bill and how it includes conservation. President Goodin expressed his appreciation for Mr. Reeb's work that he has done on behalf of the District. DISCUSSION AND POSSIBLE ACTION REGARDING THE STATE OF SANTA ANA RIVER WATERSHED "OVERCOMING BOUNDARIES' EVENT, ONTARIO, JANUARY 29, 2009 (Minutes 11/25/2008) etb 4 Vice President Wilson stated that the Public Outreach committee reviewed this item and recommended it be reviewed by the Board. Ms McAndrews inquired on direction from the Board; that the Santa Ana River Watershed event is requesting the District's name on the host list or a donation of $1500. M/S /C (Wilson - Levesque) that the District place its name on the host list for the State of Santa Ana River Watershed "Overcoming Boundaries" Event. RESOLUTION 2008.22 - A RESOLUTION TO TAX DEFER MEMBER PAID CONTRIBUTIONS — RESOLUTION FOR EMPLOYER PICK UP M/S /C (LeVesque - Wilson) that Resolution 2008.22 be approved. DISCUSSION AND POSSIBLE ACTION REGARDING AWARD OF PROFESSIONAL SERVICES AGREEMENT FOR CONSTRUCTION MANAGEMENT SERVICES Mr. Cates from CDM gave a presentation of the decision process for construction management services; that interviews were held; that a recommendation to the Board is to award Cordoba Corporation for Construction Management Services. Director LeVesque stated that he participated in the interviews and concurs with the recommendation. Director Morales stated that the Cordoba Corporation put extra effort into preparing for the District's project; that they were very aware of the utility lines in the area of the project. Vice; President Wilson stated that he would have liked to have been included with the interview process. The General Manager stated that he concurs with all the comments made by the members; that he supports the recommendation; that a detailed agreement will be brought to the Board in the :future. President Goodin expressed his appreciation to CDM and Staff for their diligence in this process. M/S /C (LeVesque- Sturgeon) — to approve the recommendation from CDM to award Construction Management Services to Cordoba Corporation. (Minutes 11125/2008) etb 5 DISCUSSION AND POSSIBLE ACTION REGARDING CORRECTING GRANT DEED FOR GREENSPOT VILLAGE AND MARKET PLACE, LLC Mr. Buchwald stated that he was contacted by Mr. Snell to have the Grant Deed corrected. Legal Counsel recommended that this action needed to be clarified prior to the Board making corrections. Director Sturgeon wanted to know what concerns Director Morales may have. Director Morales stated that it was not clear as to what the necessary changes were. M/S /C (Wilson - LeVesque) to authorize legal counsel to contact Mr. Snell and make the necessary amendments to the grant deed. DISCUSSION AND POSSIBLE ACTION REGARDING THE WATER EDUCATION FOUNDATION'S "2009 WATER LEADERS CLASS" Director Sturgeon stated that a water district employee could be mentored throughout the state with this program; that the candidate would bring back valuable information for our district. Director Morales inquired if the funding is available for this program to absorb cost; if there is a committee for the selection process. Director Morales stated that he would like the District to submit an application if time permits. President Goodin state that he would like more information about the program; are there benefits of being involved with the program; that personal advances in education is great. M/S /C (LeVesque- Sturgeon) to direct staff to submit an application and move forward with the 2009 application for the program. The General Manager stated that he would give all employees information to build an interest list. DISCUSSION REGARDING THE SCHEDULING OF MEETINGS, COMMITTEE MEETINGS AND AGENDAS Director LeVesque requested a draft agenda be given to the Board members for their review one (1) week prior to the Committee Meetings. (Minutes 11/25/2008) etb Vice President Wilson stated that for standing committee meetings there is a 72 -hour posting prior to each meeting. DISCUSSION AND POSSIBLE ACTION REGARDING THE SAN BERNARDINO AREA CHAMBER OF COMMERCE BOARD OF DIRECTORS OFFICIAL BALLOT Director Morales inquired if the Board had any specific choice. M/S /C (Sturgeon - LeVesque) to vote for all 7 candidates. REVIEW AND ACCEPT FINANCIAL STATEMENTS FOR THE PERIOD ENDED OCTOBER 31, 2008 Mr. Tompkins reviewed the Financial Statements in detail. Director Sturgeon commented that he was very pleased with the expanded format of the Financial Statements. Directors Wilson, Goodin, and Morales concurred with Director Sturgeon's comments regarding the expanded format. M/S /C (Sturgeon- Wilson) to accept the Financial Statements for the period ended October 31, 2008. DIRECTORS' FEES AND EXPENSES FOR OCTOBER 2008 M/S /C (Wilson - LeVesque) to approve Directors' fees and expenses for October 11: GENERAL MANAGER/STAFF REPORTS The General Manager reported on the District's operations to date; that the news had stated that during the Yorba Linda Fires there was insufficient water pressure to fight the fire; that the low water pressure could have been caused by any number of items. Mr. Sturdivan gave a summary of the District's involvement in the Golden Guardian exercise; that this exercise is the first functional exercise that we have participate in; that the District participated in the exercise for two days; that scenarios were implemented in the two day exercise; that the ERNIE group was involved in the exercise which included (Minutes 11/25/2008) etb 7 20 agencies; that the District used a low band radio system which works well in emergency situations; that he would like to train and certify staff on the use of HAM radios. Director Morales stated that he would prefer a report on items that would be needed in an emergency to be able to prioritize in a disaster. Director LeVesque stated that a spreadsheet would be beneficial for a report of a damage assessment. The General Manager stated that the newer plants are made to withstand a higher seismic load; that the older plants would not do well in a major seismic event. CONSULTANT REPORTS Ms McAndrews expressed gratitude to Director Sturgeon for his help and attendance at the Solar Challenge workshop; that the workshop consisted of technical sessions, safety, rules, and key points; that students from Cal Poly provided help with these sessions; that she is developing a sponsor list. Director Morales (Legislative) stated the State budget is still short; that $8.1 billion in spending cuts will be discussed in the next state legislative meeting. Vice President Wilson (Public Outreach) stated that he had taken calendars and bottled water to the Kiwanis club meeting. Director LeVesque (Headquarters) stated that he had met with GMID regarding the landscape challenges, irrigation requirements and the solar system. Director Morales stated that he set up a meeting with the mayor to discuss tree heights on the property. Director Sturgeon stated that it is still in the plans to name a fountain or garden after the sellers of the property. ORAL COMMENTS FROM BOARD OF DIRECTORS Director Morales stated that he was involved with the County EOC during the Golden Guardian exercise; that he was happy to see the District involved. (Minutes 11/25/2008) etb 8 Director Sturgeon stated that that he would be testing for the certification of HAM radios in near future. President Goodin expressed his satisfaction with the operations of the District and the Board of Directors. E -MAIL CORRESPONDENCE FROM AWWA RESEARCH FOUNDATION REGARDING NEW REPORT ON ENDOCRINE DISRUPTING COMPOUNDS (EIIC'S) Information only. LETTER OF APPRECIATION TO THE DISTRICT FROM THE HIGHLAND AREA CHAMBER OF COMMERCE Information only. LETTER OF APPRECIATION TO THE DISTRICT FROM BEV AND ED ARONSON REGARDING THE RECENT FACILITIES TOUR Information only. JUDY MABEN TRIBUTE DINNER, MADISON RESTAURANT & BAR, LONG BEACH, DECEMBER 1, 2008 Information only. ASSOCIATION OF THE SAN BERNARDINO COUNT SPECIAL DISTRICTS MEMBERSHIP MEETING HOSTED BY SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT, RILEY'S FARM, OAK GLEN, DECEMBER 15, 2008 Information only. CSDA'S "HOW TO BE AN EFFECTIVE BOARD MEMBER" VARIOUS DATES AND LOCATIONS Information only. ACWA'S 2009 WASHINGTON, DC CONFERENCE, FEBRUARY 24 -26, 2009 Information only. The Board took a five- minute break at 5:12 p.m. Returned to session at 5:19 p.m. CLOSED SESSION The Board entered into Closed Session at 5:19 p.m. as provided in the California Open Meeting Law, Government Code Section 54945.9(a), to discuss those items listed on the agenda. ADJOURN TO REGULAR SESSION President Gooding declared that the meeting adjourn to regular session. (Minutes 11/25/2008) etb 9 ANNOUNCEMENT OF CLOSED SESSION ACTIONS The Board returned to regular session at 5:29 p.m. Items listed on the agenda were discussed in closed session with no reportable action being taken. [V 111 [VOT111 W The meeting was adjourned at 5:30 p.m. until the next Regular Board Meeting on December 9, 2008. Robert E. Martin, Secretary Donald D. Goodin, President (Minutes 11/25/2008) etb 10 Subject to approval EAST VALLEY WATER DISTRICT REGULAR BOARD MEETING MINUTES DECEMBER 9, 2008 President Goodin called the meeting to order at 2:30 p.m. Director Wilson led the flag salute. PRESENT: Directors Goodin, LeVesque, Sturgeon, Wilson ABSENT: Director Morales STAFF: Robert Martin, General Manager; Brian Tompkins, Chief Financial Officer; Justine Hendricksen, Administrative Manager LEGAL COUNSEL: Steve Kennedy GUEST(s): Jo McAndrews (McAndrews & Boyd), Larry Malmberg APPROVAL OF AGENDA M /S /C (Wilson - LeVesque) that the December 9, 2008 agenda be approved as submitted PUBLIC PARTICIPATION President Goodin declared the public participation section of the meeting open at 2:30 p.m. There being no written or verbal comments, the public participation section was closed. ADJOURN TO EAST VALLEY PUBLIC FACILITIES CORPORATION MEETING AT 2:31 P.M. RECONVENE TO EAST VALLEY WATER DISTRICT REGULAR BOARD MEETING AT 2:33 P.M. APPROVAL OF SPECIAL MEETING MINUTES FOR NOVEMBER 20, 2008 M/S /C (Wilson - LeVesque) that the November 20, 2008 Special Meeting Minutes be approved as submitted. Minutes: 12/09/08 jph RESOLUTION 2008.26 — A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ADOPTING A CONFLICT OF INTEREST CODE M /S /C (Wilson - LeVesque) that Resolution 2008.26 be approved. DISIBURSEMENTS M /S /C (Wilson - LeVesque) that General Fund Disbursements #217335 through 217528 distributed during the period of November 24, 2008 through December 3, 2008 in the amount of $1,848,331.88 and Payroll Fund Disbursements for the period ended October 31, 2008 and November 21, 2008 in the amounts of $9,077.54 and $221,889.26 totaling $2,079,298.68 be approved. HEADQUARTERS PROJECT REVIEW AND UPDATE The General Manager stated that he has requested a revised proposal from Cordoba Corporation for the 1st phase of the project; that he and the committee have met with landscaping and solar and consultants regarding the headquarters project. Director Wilson would like a progress update on the headquarters project. Director LeVesque and Morales met with the City of San Bernardino Mayor's office regarding the headquarters project. The Directors voiced their concerns to the Mayor's office regarding unreasonable landscape and irrigation requests being required by the City of San Bernardino for the 7 acres of vacant land. Information only. DISCUSSION AND POSSIBLE ACTION REGARDING THE WATER EDUCATION FOUNDATIONS "2009 WATER LEADERS CLASS" The General Manager stated that ten employees expressed interest in the program; that he requests guidance from the Board as to the selection process they would like to use. President Goodin would have appreciated additional time to review the letters of interest from prospective candidates. M/S (Wilson - Sturgeon) that an additional $2500 be added to the budget for the Water Education Foundation's "Water Leaders Class ". The Board would like the process to start earlier next year in order to review and interview prospective candidates. Directors Wilson and Sturgeon would like to amend their motion to state that the General Manager will select the employee who will be recommended for Water Education Foundations "2009 Water Leaders Class ". 2 Minutes: 12/09/08 jph M /S /C (Wilson- Sturgeon) that an additional $2500 be added to the budget and that the General Manager will select the employee who will be recommended for Water Education Foundations "2009 Water Leaders Class ". BOARD REORGANIZATION President Goodin declared nominations open for Board Reorganization. M /S /C (Sturgeon -Le Vesque) that the nomination(s) for President and Vice President be closed and the ballot be cast for Donald D. Goodin as President and George E. Wilson for Vice President of the Board. M/S (Le Vesque- Sturgeon) that Robert Martin be re- appointed as General Manager. M/S (Le Vesque - Sturgeon) that Brian Tompkins be re- appointed as Chief Financial Officer. Director Sturgeon requested that Justine Hendricksen be appointed as Board Secretary. Mr. Kennedy reviewed the water code and legal functions of the secretary with the Board. Mr. Kennedy also stated that Mr. Tompkins and Ms. Hendricksen work directly for the General Manager and not the Board of Directors. Mr. Tompkins questioned the appointment process for the Chief Financial Officer position. Director Wilson stated that he is content with the General Manager being the Board Secretary. A member of questions and concerns regarding the appointment structure for the General Manager, Board Secretary and Chief Financial Officer were discussed. It was determined that the General Manager does not need to be appointed as he already has a contract with the Board. The Board would like this item re- agendized for the next board meeting to discuss the Chief Financial Officer and Board Secretary appointments. No vote was taken. No changes were made to the Committee Assignments for 2009. SETTING TIME AND PLACE FOR HOLDING MEETINGS President Goodin declared the time and place for holding regular meetings is open for discussion. M/S (Le Vesque- Sturgeon) that the District's Regular Board Meetings be held at the District's Office located at 3654 E. Highland Avenue Suite 12, Highland, California, on the second (2 "d) and fourth (0) Tuesday of each month at 4:00 p.m. Minutes: 12/09/08 jph President Goodin and Vice President Wilson are content with the meeting time at 2:30 p.m. Director LeVesnue would like the meetings to be at 4:00 p.m. The General Manager stated that Director Morales (via email) has proposed that the meetings be held at 4:00 p.m. or later. He suggested that the later time might create a greater level of participation from the public but is aware that there may be fiscal impacts related to this. M/S (Wilson - Sturgeon) that the District's Regular Board Meetings be held at the District's Office located at 3654 E. Highland Avenue Suite 12, Highland, California, on the second (2 "d) and fourth (4th) Tuesday of each month at 2:30 p.m. Directors Wilson and Sturgeon amended their motions to have the meetings at 3:00 p.m. M/S /C; (Wilson - Sturgeon) that the District's Regular Board Meetings be held at the District's Office located at 3654 E. Highland Avenue Suite 12, Highland, California, on the second (2 "d) and fourth (4th) Tuesday of each month at 3:00 p.m. DISCUSSION AND POSSIBLE ACTION REGARDING THE HIGHLAND CHAMBER OF COMMERCE BALLOT FOR THE 2009 BOARD OF DIRECTORS M /S /C; (Wilson- Sturgeon) that the Board approve the current slate of candidates on the ballot. DISCUSSION AND POSSIBLE ACTION REGARDING THE DECEMBER 23`d, 2008 BOARD MEETING The Board rescheduled the December 23rd meeting to December 22, 2008 at 3:00 p.m. DISCUSSION AND POSSIBLE ACTION REGARDING THE IRS 2009 STANDARD MILEAGE RATES M /S /C (Sturgeon - Wilson) that the IRS 2009 Standard Mileage Rates be approved. DIRECTOR'S FEES AND EXPENSES FOR NOVEMBER 2008, were presented to the Board for approval. M /S /C (Wilson- Sturgeon) that the Director's fees and expenses for November 2008 be approved. GENERAL MANAGER/STAFF REPORTS 4 Minutes: 12/09/08 jph The General Manager reported on the District's operations to date; that he has spoken to a representative from Arrowhead Credit Union regarding Capital Financing; that the San Bernardino Valley Municipal Water District (SBVMWD) is working on a conservation sponsorship program; the program will work with city schools and parks and SBVMWD will pay 50% of the initial cost of the system. The General Manager has met with the City of Highland and SBVMWD regarding the program; a representative from SBVMWD will be at the December 22 n board meeting to provide information regarding the program; that the District's annual employee awards banquet is this Saturday at 6:00 p.m.; that the old Administration offices on Del Rosa are being demolished this week. Mr. Tompkins stated that he is working on Grant funding for Plant 150. Information only. CONSULTANT REPORTS Ms. ]McAndrews stated that the City of Redlands is considering sponsoring two schools to participate in the Inland Empire Solar Challenge. The date for the event is May 8 -10, 2009, at the Yucaipa Regional Park. Information only. COMMITTEE REPORTS a) Legislative (Standing) - Director Sturgeon stated that the committee is finalizing a draft legislative policy. b) Budget (Standing) - Director LeVesque stated that the budget committee had met on December 8`h. Items discussed were: • Tiered rate structures • Prop 218 regulations • Conservation measures and mandates A number of these items warrant further review and will be brought back to the Board for discussion at a later date. c) Public Outreach (Standing) - The committee is meeting on Friday, December 12`n d) Headquarters Project - (Ad -Hoc) No report at this time. ORAL COMMENTS FROM BOARD OF DIRECTORS Vice President Wilson stated that he attended the first two days of the ACWA conference in Long Beach and that he recently spoke at the Kiwanis Club. Director Sturgeon stated that he recently attended a retirement dinner for Judy Maben. He also stated that Credit Union's such as Arrowhead Credit Union network together to provide loans to agencies such as East Valley Water District. Mr. Mark Vargas has stated that he can provide information regarding financing and lease back options for the District. Minutes: 12/09/08 jph President Goodin also attended the retirement dinner for Judy Maben. WATER EDUCATION FOUNDATION'S 26TH ANNUAL EXECUTIVE BRIEFING "WATER 2009: BUILDING ON CHANGE ", DOUBLETREE HOTEL, SACRAMENTO, MARCH 12-136,2009 WATER EDUCATION FOUNDATION'S 2009 WATER TOUR SCHEDULE, VARIOUS DATES AND LOCATIONS CLOSED SESSION The Board entered into Closed Session at 4:18 p.m. as provided for in the California Open Meeting Law, Government Code Section 54945.9(a), to discuss the item listed on the agenda. ADJOURN TO REGULAR SESSION President Goodin declared that the meeting adjourn to regular session. ANNOUNCEMENT OF CLOSED SESSION ACTIONS The Board returned to session at 4:19 p.m. The item listed on the agenda was discussed in closed session with the no action being taken. ADJOURN The meeting was adjourned at 4:19 p.m. Robert E. Martin, Secretary Donald Goodin, Board President 6 Minutes: 12/09/08 jph ORDINANCE NO. 374 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING GUIDELINES FOR THE CONDUCT OF ITS PUBLIC MEETINGS AND ACTIVITIES WHEREAS, the Board of Directors of the East Valley Water District finds as follows: A. The East Valley Water District ( "the District") is a county water district organized and operating pursuant to California Water Code Section 30000 et seq. B. The District is governed by an elected Board of Directors ( "the Board ") whose meetings are subject to the requirements of the Ralph M. Brown Act, California Government Code Section. 54950 et seq. ( "the Brown Act"). C. The Board is authorized by Government Code Section 54953.7 to impose requirements upon itself which allow greater access to its meetings than prescribed by the Brown Act. D. The purpose of this ordinance is to ensure that the Board's deliberations are open to the public to the fullest extent permitted by law and its activities are performed in a manner that reflect a dedication to the highest standards of integrity and accountability so as to continue to earn the trust and confidence of the public served by the District. THEREFORE, THE BOARD OF DIRECTORS of the East Valley Water District does hereby adopt and ordain as follows: Section 1. PUBLIC ACTIVITIES. To the extent not otherwise inconsistent with applicable law or any existing or future ordinances, resolutions, rules, regulations, or particular practices of the District, the Board hereby adopts as a matter of general policy the Guidelines for Conduct attached hereto as Exhibit "A" and 1 incorporated herein by this reference. Section 2. PUBLIC MEETINGS. 2.1. Statutory Requirements. All meetings of the Board and all committees thereof shall be conducted in compliance with all applicable requirements of the Brown Act. 2.2. Additional Requirements. 2.2.1. Regular Meetings. Pursuant to Government Code Section 54954(a), all regular meetings of the Board shall be held at 3:00 p.m. on the second and fourth Tuesdays of each month at the District offices located at 3654 East Highland Avenue, Suite #12, Highland, California. 2.2.2. Special Meetings. Special meetings of the Board shall be called and conducted in accordance with Government Code Section 54956. The Board shall not add any non- age:ndized item to the agenda of a special meeting. Further, no agenda for a special meeting shall provide an opportunity for the Board to consider the possible addition of any non - agendized item to the agenda. 2.2.3. Agendas. The agendas of all Board meetings and all committee meetings that are open to the public shall be posted in the following locations: (1) an exterior bulletin board located outside the District headquarters which is accessible twenty -four (24) hours a day; (2) on -line at the District's website known as "eastvalley.org "; and (3) an interior bulletin board located in the lobby of the District headquarters. Section 3. REVIEW OF ORDINANCE ON ANNUAL BASIS. Each year the Board shall review this ordinance to determine its effectiveness and the necessity for its continued operation. The District's General Manager shall report to the Board on the operation of this ordinance, and make any recommendations deemed appropriate, including proposals to amend the ordinance. Upon conclusion of its review, the Board may take any action it 2 deems appropriate concerning this ordinance. Nothing herein shall preclude the Board from taking action on the ordinance at times other than upon conclusion of the annual review. Section 4. SEVERABILITY. If any provision of this ordinance, or the application thereof to any person or circumstances, is held invalid, such invalidity shall not affect other provisions or applications of this ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are declared to be severable. Section 5. EFFECTIVE DATE. The provisions of this ordinance shall supersede Ordinance No. 372 adopted by the Board on June 10, 2008, and shall take effect immediately upon adoption. Adopted this 22nd day of December, 2008. ROLL CALL Ayes: Noes: Abstain: Absent: Donald D. Goodin President, Board of Directors ATTEST: Robert E. Martin Secretary, Board of Directors EXHIBIT "A" GUIDELINES FOR CONDUCT AND AB 1234 COMPLIANCE D,11111� -)i A e i 2006 UPDATE Association of California Water Agencies Leadership Advocacy Information sinceigio 916/441-4545 FAx 916/325-4849 www.acwa.com. 910 K Street, Suite 100, Sacramento, California 9581.4-3577 Association of California Water Agencies teadersrup Advocacy Iniarmation ACWNs mission is to assist its members in promoting the development, management and reasonable beneficial use of good quality water at the lowest practical cost in an environmentally balanced manner. ACWA is a statewide association of public agencies s1}hose 440 vtcInbers are responsible f or about 90% of the water deliveries in California. May 2006 Association of California 'Water Agencies 910 K Street, Suite 100 Sacramento, California 95814 (916) 441-4545 www.acwa.com Executive Director Steve Hall GUIDELINES FOR CONDUCT AND AB 1234 COMPLIANCE A Primer for Public Water Agency Officials 2006 UPDATE Association of California Water Agencies _.._...... _._. .. _.._ ..... 1. Leadership Advocacy Information Since I910 916/441. -4545 FAx 91.6 /325 -4849 www.acwa.com 91.0 K Street, Suite 100, Sacramento, California 95814 -3577 Guidelines for Conduct and AB 1234 Compliance - A Primer for Public Water Agency Officials O 2006 by the Association of California Water Agencies 91.0 K Street, Suite 100 Sacramento, California 95814 916/441. -4545 w Arw.acwa.com To order additional copies of this publication, please visit: wNvw .acwa.com/produci:s/acwamall/ ACKNOWLEDGMENTS ACWA wishes to thank the members of its Water Agency Guidelines Task Force for their expertise and tireless efforts in developing the original Guidelines for Conduct published in 2004. E.G. "Jerry" Gladbach — Castaic Lake Water Agency Gary Arant — Valley Center Municipal Water District Paul Bartkiewicz — Bartkiewicz, Kronick & Shanahan Randy Fiorini — Turlock Irrigation District Brent Graham — Tulare Lake Basin Water Storage District Melody Henriques — San Bernardino Valley Water Conservation District Dan Klaff — ACWA/Joint Powers Insurance Authority Dan Kriege — Soquel Creek Water District Wayne Lemieux — Lemieux & O'Neill Jim Pretti — Contra Costa Water District Jess Senecal — Lagerlof, Senecal, Bradley, Gosney, et al. Roger Sherrill — Rio Alto Water District Dana Wisehart — United Water Conservation District Greg Zlotnick — Santa Clara Valley Water District ACWA wishes to thank the members of the Legal Affairs' AB 1234 Subcommittee for their expertise and tireless efforts in updating these Guidelines for Conduct and AB 1234 Compliance. (May 2006) Daniel Hentschke — San Diego County Water Authority Josh Horowitz — Bartkiewicz, Kronick & Shanahan Elizabeth Martyn — McCormick, Kidman & Behrens, LLP Janet Morningstar —Janet Morningstar, A Law Corporation Other Credits: Whitnie Henderson — ACWA Legislative Advocate, Attorney At Law Jennifer Persike — ACWA Director of Strategic Coordination / Public Affairs Lisa Lien -Mager — ACWA Special Project Coordinator TABLE OF CONTENTS KEY SECTIONS 1. Purpose and Scope ............................................................................... ..............................1 2. Responsibilities of Public Office ........................................................... ..............................1 3. Fair and Equal Treatment ..................................................................... ..............................2 4. Proper Use and Safeguarding of District/Agency Property and Resources ...........................2 5. Use of Confidential Information ........................................................... ..............................3 6. Conflict of Interest ............................................................................... ..............................4 7. Soliciting Political Contributions .......................................................... ..............................6 S. Incompatible Offices ............................................................................ ..............................6 9. Director - General Manager Relationship ................................................ ..............................7 10. Improper Activities and the Reporting of Such Activities; Protection of "Whistle Blowers.. ............................................................ ..............................8 11. Compliance with the Brown Act ........................................................... ..............................9 12. Directors' Compensation and Expense Reimbursement ....................... .............................10 13. Changes in Compensation .................................................................. .............................16 14. Candidate's Statement ......................................................................... .............................17 15. Violation of Ethics Policy ..................................................................... .............................17 RESOURCES................................................................. ............................... 18 PREAMBLE "Government is a trust, and the officers of government are the trustees; and both the trust and the trustees are created for the benefit of the people." (Henry Clay, 1829) Water agencies have an important mission: to provide reliable, high quality water supplies for their customers at the lowest practicable cost. Water agencies need the support of the communities they serve in order to be effective. All water agency officials should be dedicated to the highest ideals of integrity and accountability to earn the continued trust, confidence and support of the public they serve. The adoption and adherence to written guidelines regarding the conduct of public officials provide a sound foundation on which to build public trust and confidence. These guidelines provide a primer on standards of accountability for water agency officials. Though this document summarizes requirements of existing law, it also goes beyond statutory requirements to suggest additional policies to enhance accountability and strengthen water agency operations. Legal citations are included as appropriate. ACWA members should consult their legal counsel to confirm the applicability of these provisions to their agency. Some of the provisions will be controlled by the requirements of the enabling act under which the water agency operates. These nuances are noted in the preamble to each section of the guidelines, which also states the purpose for each section. Each section contains sample language for implementing the purpose of the section. These guidelines are a tool for ACWA members to use as they deem appropriate to assist in preparing or updating a comprehensive set of written policies to inform both elected officials and the general public of the ethical standards their public officials are expected to meet in conducting the public's business. While these guidelines are designed specifically for directors, ACWA recommends that water agencies adopt additional guidelines for management and other water agency employees. ACWA assisted the Institute for Local Self Government (renamed the Institute for Local Government in 2005) with preparing A Local Officials Guide to Ethics Laws (Spring 2002). The Institute's Web site, www.ilsg.org, is an excellent source of reference materials concerning guidelines for ethical conduct by public officials. ACWA recommends that water agencies adopt written policies that meet current legal requirements concerning the conduct of public officials and accounting for the use of public funds. In cases when compensation is paid or expenses are reimbursed, certain policies are now mandatory as a result of changes to the law that became effective January 1, 2006 (Assem. Bill No. 1234 [2005 -2006 Reg. Sessj). Updates reflecting these statutory changes are found in sections 4, 6, 8, 12, 13 and 15 of this document. Continued ... PREAMBLE: — Continued from previous page ACWA also recommends that water agencies review and update their policies periodically during Board meetings to ensure that water agency officials keep ethical requirements in mind as they conduct the public's business. Frequent review and discussion of these policies also Helps reassure the community that the trust Henry Clay spoke of is being honored and protected for the benefit of the public. As used in these guidelines, "district/agency" refers to either a public water agency or district, and "director" refers to a member of the Board of Directors, Board of Trustees, or other governing body of a public water agency. SECTION i PURPOSE AND SCOPE Water agencies should have written policies, procedures and/or guidelines for the general conduct of business by elected officials. Ethical behavior guidelines may be established in the purpose section of an ethics policy or may be integrated into documents such as an agency's mission statement. Sample language is shown below. The policy of the Water District/Agency is to maintain the highest ethical standards for its Directors. The proper operation of the District/Agency requires that decisions and :policy be made within the proper channels of governmental structure, that public office not be used for personal gain, and that Directors remain objective and responsive to the needs of the public they serve. Accordingly, it is the policy of the District/Agency that Directors and District/Agency employees will maintain the highest standard of personal honesty and fairness in carrying out their duties. This policy sets forth the basic ethical standards to be followed by the Board of Directors of the Water District/Agency. The objectives of this policy are to (1) provide guidance for dealing with ethical issues, (2) heighten awareness of ethics and values as critical elements in Directors' conduct, and (3) improve ethical decision - making and values -based management. SECTION 2 RESPONSIBILITIES OF PUBLIC OFFICE Public officials are subject to numerous State laws that set forth requirements for how they conduct the public's business. An ethics policy is one place to compile references to those laws. In the alternative, agencies may rely on the laws themselves, but preparing a summary of them should help to assure compliance. Sample language is shown below. Directors are obligated to uphold the Constitution of the United States and the Constitution of the State of California. Directors will comply with applicable laws regulating their conduct, including conflict of interest, financial disclosure and open government laws. Directors will strive to work in cooperation with other public officials unless prohibited from so doing by law or officially recognized confidentiality of their work. (Cal. Const., art. XX, § 3; Gov. Code, § 1360.) Guidelines for Conduct and AB 1234 Compliance SECTION 3 FAIR AND EQUAL TREATMENT State and federal law require that public officials abide by standards that relate to the fair and equal treatment of the public. Sample language is shown below. Directors, in the performance of their official duties and responsibilities, will not discriminate against or harass any person on the basis of race, religion, color, creed, age, marital status, national origin, ancestry, gender, sexual orientation, medical condition or disability. A Director will not grant any special consideration, treatment or advantage to any person or group beyond that which is available to every other person or group in similar circumstances. (See, e.g., Cal. Const., art. 1, § 31; California Fair Employment and Housing Act (Gov. Code, §§ 12900 et seq.); Lab. Code, § 1102; Age Discrimination in Employment Act of 1967 (29 U.S.C., §§ 621 -634); Americans with Disabilities Act of 1990 (42 U.S.C., §§ 12101 et seq.); Rehabilitation Act of 1973 (29 U.S.C., §§ 701 et. seq.); tit. VII of the Civil Rights Act of 1964 (42 U.S.C., §§ 2000e et seq.).) SECTION 4 PROPER USE AND SAFEGUARDING OF DISTRICT /AGENCY PROPERTY AND RESOURCES Public officials have a Constitutional duty to take appropriate steps to assure that District/ Agency funds, documents and public property are safeguarded. Sample language is shown below. Except as specifically authorized, the California Constitution prohibits a Director from making a "gift of public funds" by utilizing or permitting the use of District/Agency-owned vehicles, equipment, telephones, materials or property for his or her personal benefit or profit of third parties. A Director will not ask or require a District/Agency employee to perform services for the personal benefit or profit of a Director. Each Director must protect and properly use any District/Agency asset within his or her control, including information recorded on paper or in electronic form. Directors will safeguard District/Agency property, equipment, moneys, and assets against unauthorized use or removal, as well as from loss due to criminal act or breach of trust. (Cal. Const., art. XVI, § 6; Gov. Code, §§ 8314 and 53234 ct seq.; Pen. Code, § 424; see People v Battin (1978) 77 Ca1.App.3d 635.) 2 1 Association of California Water Agencies SECTION 5 USE OF CONFIDENTIAL INFORMATION The Brown Act sets forth provisions that require public officials to maintain the confidentiality of certain information. This section paraphrases applicable provisions of the Brown Act. Sample language is shown below. A. A Director is not authorized, without approval of the Board of Directors, to disclose information that qualifies as confidential information to a person not authorized to receive it. Under applicable provisions of law, information qualifies as confidential if it (1) has been received for, or during, a closed session meeting of the Board, (2) is protected from disclosure under the attorney /client or other evidentiary privilege, or (3) is not required to be disclosed under the California Public Records Act. B. This section does not prohibit a Director from taking any of the following actions: (1) making a confidential inquiry or complaint to a district attorney or grand jury concerning a perceived violation of law, including disclosing facts to a district attorney or grand jury that are necessary to establish the alleged illegality of an action taken by the District/Agency, an elected official or employee, (2) expressing an opinion concerning the propriety or legality of actions taken by the District/Agency in closed session, including disclosure of the nature and extent of the allegedly illegal action, or (3) disclosing information acquired during a closed session that is not confidential information. Prior to disclosing confidential information pursuant to (1) or (2), above, however, a Director will first bring the matter to the attention of eil:her the President of the Board or the full Board, to provide the Board an opportunity to cure an alleged violation. C. A Director who willfully and knowingly discloses for monetary gain confidential information received in the course of his or her official duties may be guilty of a misdemeanor under Government Code section 1098. (Gov. Code, § 54963.) Guidelines for Conduct and AB 1234 Compliance SECTION 6 CONFLICT OF INTEREST Public officials are required to conduct the public's business free of prohibited conflicts of interest. Conflict of interest laws and implementing regulations are highly technical, and are updated periodically. As required by Government Code sections 53234 et seq., local public officials must complete specific ethics training. In addition to and consistent with such training, agencies should ensure that their public officials continue to be informed of the requirements of conflict of interest laws, and that appropriate procedures have been adopted for their implementation. Paragraph B includes procedures consistent with recent changes to the law rega, ding disclosure of a conflict of interest, set forth in Government Code section 87105. Paragraph C reflects an exercise of the Board's discretion, and is not a legal requirement. Sample language is shown below. A. A Director will not have a financial interest in a contract with the District/Agency, or be a purchaser at a sale by the District/Agency or a vendor at a purchase made by the District/ Agency, unless the Director's participation was authorized under Government Code sections 1.091. or 1091.5, or other provisions of law. A Director will not participate in the discussion, deliberation or vote on a matter before the Board of Directors, or in any way attempt to use his or her official position to influence a decision of the Board, if he or she has a prohibited interest with respect to the matter, as defined in the Political Reform Act, Government Code sections 81000 et seq., relating to conflicts of interest. Generally, a Director has a financial interest in a matter if it is reasonably foreseeable that the Board decision would have a material financial effect (as defined by Fair Political Practices Commission [FPPCj regulations found at Cal. Code Regs., tit, 2, §§ 18100 et seq.) that is distinguishable from the effect on the public generally on (a) a business entity in which the Director has a direct or indirect investment in the amount specified in FPPC regulations; (b) real property in which the Director has a direct or indirect investment interest, with a value in the amount specified in FPPC regulations; (c) a source of income for the Director in the amount specified in FPPC regulations, within 12 months before the Board decision; (d) a source of gifts to the Director in an amount specified in FPPC regulations within 12 months before the Board decision; or (e) a business entity in which the Director holds a position as a director, trustee, officer, partner, manager or employee. An "indirect interest" means any investment or interest owned by the spouse or dependent child of the Director, by an agent on behalf of the Director, or by a business; entity or trust in which the Director, or the Director's spouse, dependent child or agent., owns directly, indirectly or beneficially a 10% interest or greater. An elected official will not accept honoraria or gifts that exceed the limitations specified in the Fair Political Practices Act or FPPC regulations. Directors will report all gifts, campaign contributions, income and financial information as required under the District/Agency's Conflict of Interest Code and the provisions of the Fair Political Practices Act and FPPC regulations. (Gov. Code, §§ 87100 et seq.) 4 1 Association of California Water Agencies B. If a member of the Board believes that he or she may be disqualified from participation in the discussion, deliberations or vote on a particular matter due to a conflict of interest, the following procedure will be followed: (a) if the Director becomes aware of the potential conflict of interest before the Board meeting at which the matter will be discussed or acted on, the Director will notify the District/Agency's General Manager and the District/Agency's legal counsel of the potential conflict of interest, so that a determination can be made whether it is a disqualifying conflict of interest; (b) if it is not possible for the Director to discuss the potential conflict with the General Manager and the District/Agency's legal counsel before the meeting, or if the Director does not become aware of the potential conflict until during the meeting, the Director will immediately disclose the potential conflict during the Board meeting, so that there can be a determination whether it is a disqualifying conflict of interest; and (c) upon a determination that there is a disqualifying conflict of interest, the Director (1) will not participate in the discussion, deliberation or vote on the matter for which a conflict of interest exists, which will be so noted in the Board minutes, and (2) will leave the room until after the discussion, vote and any other disposition of the matter is concluded, unless the matter has been placed on the portion of the agenda reserved for uncontested matters or the Director has been advised that specific FPPC exemption applies. C. A Director will not recommend the employment of a relative by the District/Agency. A Director will not recommend the employment of a relative to any person known by the Director to be bidding for or negotiating a contract with the District/Agency. D. A Director who knowingly asks for, accepts or agrees to receive any gift, reward or promise thereof for doing an official act, except as may be authorized by law, may be guilty of a misdemeanor under Penal Code section 70. E. Effective July 1, 2006, no Director who leaves office with the District/Agency may represent another person or entity before that Agency for one year after leaving office. This prohibition is very broad and covers any appearance before the District/Agency or one of its committees or any written or oral communication with theAgency for the purpose of influencing any type of decision. This prohibition is the same as that for certain state officers. The limited exceptions are for the former Director to represent him or herself; represent another person or entity without compensation, or where the former Director is an employee, officer or Director of another public agency, and represents that other public agency. (However, be aware that a local public agency may adopt a stricter rule). (Gov. Code, §§ 1090 et seq., 53232, 81000 et seq., and 87105; Pen. Code, §§ 68 and 70, see also 18 U.S.C:. §§ 1340 and 1346 federal statutes that prohibit certain actions intended to deprive another of the "intangible right of honest services." This has been interpreted to include honest government services.) Guidelines for Conduct and AB 1234 Compliance 1 5 SECTION 7 SOLICITING POLITICAL CONTRIBUTIONS Government Code section 3205 prohibits an agency officer or employee from soliciting political funds or contributions from other officers or employees of the public agency. Many public agencies exerrise their discretion to also prohibit the solicitation of political contributions from consultants and vendors. Sample language is shown below. Directors are prohibited from soliciting political funds or contributions at District/Agency facilities, or from District/Agency employees. A Director will not accept, solicit or direct a political contribution from (a) District/Agency employees, officers, consultants or contractors, or (b) vendors or consultants who have a material financial interest in a contract or other matter while that contract or other matter is pending before the District/Agency. A Director will not use the District/Agency's seal, trademark, stationery or other indicia of the District/ Agency's identity, or facsimile thereof, in any solicitation for political contributions contrary to state or federal law. (Gov. Code, § 3205.) SECTION 8 INCOMPATIBLE OFFICES Another aspect of prohibited conflicts of interest is simultaneous holding of two incompatible public offices, unless simultaneous holding of the offices is compelled or expressly authorized by law. When public offices are incompatible, the public officer forfeits the first office upon taking the second. In 2005, the Legislature added Government Code section 1099, codifying the common law rule against holding incompatible public offices. (Sen. Bill 274 (2005 -2006 reg. Sess.).) Under section 1099, offices are incompatible under any of the following circumstances unless the simultaneous holding of the office is compelled or expressly authorized by law: Either office may audit, overrule, remove members of, dismiss employees of, or supervise the other office or body; Based on the powers and jurisdictions of the offices, there is a possibility of a significant clash of duties or loyalties between the offices; Public policy considerations make it improper for one person to hold both offices. The doctrine of incompatible offices does not apply to positions on government bodies that are solely advisory, or to positions of employment. (Gov. Code, § 1099; 83 Ops. Ca1.Atty. Gen 153 (2000); 58 Ops.Cal.Atty.Gen. 109 (1975).) However, the Attorney General has 6 1 Association of California Water Agencies repeatedly held that certain positions, such as general manager of a water district and city manager, are public offices. (See, e.g., 82 Ops.Cal.Atty.Gen. 201 (1999); 67 Ops.Cal.Atty.Gen 409 (1984).) Government Code section 53227 prohibits an employee of a special district from taking office as an elected or appointed member of the Board of the same special district unless he or she resigns as an employee. SECTION 9 DIRECTOR- GENERAL MANAGER RELATIONSHIP Each agency's enabling legislation refers to the duties of the governing body of the agency and the manager of the agency. A sound working relationship between the Board and management is essential to the success of an agency. Therefore, the Board may decide that it is desirable to set forth in writing the respective duties and responsibilities of the Board and management. The County Water District Law (Wat. Code, §§ 30000 et seq.) has specific provisions regarding the duties of the general manager (see Wat. Code, §§ 30580 and 30581), and these provisions are used as a template for the sample language set forth below. in addition, to further promote accountability for public funds, the sample provisions discuss the respective duties of the agency's financial officer, independent auditor and general manager; as well. In some smaller agencies, it may not be economically practicable to separate the functions of general manager and financial officer. This section should be revised as appropriate to reflect these practical considerations. Sample language is shown below. A.. The Board sets the policy for the District/Agency. The District/Agency's General Manager (a) has full charge and control of the construction, maintenance and operation of the water system and other facilities of the District/Agency, (b) has full power and authority to employ and discharge employees and assistants, consistent with District/Agency policy and other provisions of law, (c) prescribes the duties of employees and assistants, consistent with District/Agency policy, and (d) fixes and alters the compensation of employees and assistants, subject to approval by the Board. The Board will, after considering the recommendation of the General Manager, appoint the District/Agency's Financial Officer/Treasurer (who will report to the General Manager). The Financial Officer/Treasurer will install and maintain a system of auditing and accounting that will completely and at all times show the financial condition of the District/Agency in accordance with generally accepted accounting principles and legal requirements. The Board will retain and periodically review the work of an auditor as an independent contractor of the District/Agency (other than the Financial Officer/Treasurer), who will report to the Board, to conduct an annual audit of the District/Agency's books, records and financial affairs. Guidelines for Conduct and AB 1234 Compliance 1 7 B. The District/Agency's General Manager serves at the pleasure of the Board. The Board will provide policy direction and instructions to the General Manager on matters within the authority of the Board by majority vote of the Board during duly convened Board and Board committee meetings. Members of the Board will deal with matters within the authority of the General Manager through the General Manager, and not through other District/Agency employees, except as it pertains to the functions of the Financial Officer/Treasurer. Members of the Board will refrain from making requests directly to District/Agency employees (rather than to the General Manager) to undertake analyses, perform other work assignments or change the priority of work assignments. Members of the Board may request non - confidential, factual information regarding District/Agency operations from District/Agency employees. (Inse:rt Water Code or other code sections from District/Agency enabling act, e.g., War. Code, §§ 30580 -30582 for a County Water District.) SECTION 10 IMPROPER ACTIVITIES AND THE REPORTING OF SUCH ACTIVITIES; PROTECTION OF "WHISTLE BLOWERS" State and federal laws protect the rights of "whistle blowers." Agency Boards should decide whether to include the discretionary procedures outlined below for responding to complaints that would fall within the protection of "whistle blower" statutes. Sample language is shown below. A. The General Manager has primary responsibility for (1) ensuring compliance with the District/Agency's Personnel Manual, and ensuring that District/Agency employees do not engage in improper activities, (2) investigating allegations of improper activities, and (3) taking appropriate corrective and disciplinary actions. The Board has a duty to ensure that the General Manager is operating the District/Agency according to law and the policies approved by the Board. Directors are encouraged to fulfill their obligation to the public and the District/ Agency by disclosing to the General Manager, to the extent not expressly prohibited by law, improper activities within their knowledge. Directors will not interfere with the General Manager's responsibilities in identifying, investigating and correcting improper activities, unless the Board determines that the General Manager is not properly carrying out these responsibilities. 8 1 Association of California Water Agencies B. A Director will not directly or indirectly use or attempt to use the authority or influence of his or her position for the purpose of intimidating, threatening, coercing, commanding or influencing any other person for the purpose of preventing such person from acting in good faith to report or otherwise bring to the attention of the General Manager or the Board any information that, if true, would constitute: a work - related violation by a Director or District/ Agency employee of any law or regulation; gross waste of District/Agency funds; gross abuse of authority; a specified and substantial danger to public health or safety due to an act or omission of a District/Agency official or employee; use of an District/Agency office or position or of District/Agency resources for personal gain; or a conflict of interest of a District/Agency Director or District/Agency employee. C. A Director will not use or threaten to use any official authority or influence to effect any action as a reprisal against a District/Agency Director or District/Agency employee who reports or otherwise brings to the attention of the General Manager any information regarding the subjects described in this section. (Gov. Code, §§ 53298 and 53298.5; Lab. Code, §§ 1102.5 et seq.) SECTION 1 1 COMPLIANCE WITH THE BROWN ACT State law requires that public agencies comply with the Brown Act and its open meeting provisions. Agencies should provide a copy of the Brown Act to Directors and staff (Gov. Code, § 54952.7). It is appropriate to refer to compliance with the Brown Act in these guidelines. Sample language is shown below. The members of the Board of Directors, and persons elected but who have not yet assumed office as members of the Board, will fully comply with the provisions of the State's open meeting law for public agencies (the Brown Act). (Gov. Code, §§ 54950 et seq., 54952.1 and 54959.) Guidelines for Conduct and AB 1234 Compliance SECTION 12 DIRECTORS' COMPENSATION AND EXPENSE REIMBURSEMENT The enabling acts of most types of water agencies provide for compensation of members of the governing boards for each day that a director performs service as a director (commonly referred to as a "per diem' ). Water Code sections 20200 et seq. provide alternative authorization for payment of a per diem unless prohibited by the agency's principal act. These sections allow an agency to provide per diem compensation and increase the amount of the per diem by ordinance adopted after a noticed public hearing. Under Water Code section 20200 and the various enabling acts, payment of per diem compensation and reimbursement of expenses had been generally authorized for attendance at meetings of the Board of the public agency and "for each day's service rendered as a member of the board by request of the board," subject to specified limits. Assembly Bill 1234 (Salinas) which became effective January 1, 2006, imposed new requirements for payment of per diem compensation and reimbursement of expenses. AB 1234 enacted Government Code section 53232.1, which defines what types of meetings and other occurrences qualify far payment of a per diem where a per diem is otherwise authorized by statute. A local agency may pay per diem compensation to Directors for attendance at meetings of the governing body, meetings of advisory committees of the governing body, and conferences and organized educational activities which are open to the public addressing topics of general interest to the public or to the public agency (Gov. Code, § 53232 (a)). A local agency may pay a per diem for attendance at other types of occurrences only if the governing body has adopted a written policy, in a public meeting, specifying those types of activities and occasions that constitute the performance of official duties for which per diem compensation is payable (Gov. Code, § 53232 (b)). Likewise, a public agency may only reimburse Directors' expenses for travel, meals and lodging, and other actual and necessary expenses, if it has a written policy, adopted in a public meeting, which specifies the types of activities and occurrences for which reimbursement will be paid (Gov. Code, § 53232.2 (b)). In its reimbursement policy, the public agency may specify reasonable reimbursement rates for travel, meals, lodging and other expenses. If no reimbursement rates are included in the written policy, the reimbursement limits specified in Publication 463 of the Internal Revenue Service shall be used (Gov. Code, § 53232.2 (c)). AB .1234 does not state that the reimbursement "rates" must be in the form of maximum dollar amounts, and in some cases such as air travel, frequent changes in fares and the numerous Jactors affecting the cost make specifying dollar amounts impractical. A governing body may determine to adopt a reimbursement policy that defines reimbursement rates in a descriptive manner rather than setting dollar maximums (for example: "Airfare reimbursement shall not exceed available coach fares for the most direct route between the airport closest to the Director's home or place of business and the destination. ") The IRS rates for reimbursement of business travel specify different amounts for lodging, meals and incidental expenses depending 10 1 Association of California Water Agencies upon locality. There is no requirement in AB a local agency must have that level of detail "reasonable." 1234 that a reimbursement policy adopted by the limiting factor is that the rates must be Even if a public agency adopts a policy setting maximum limits on reimbursable expenses, there are additional limits provided by AB 1234. If lodging expense is in connection with an organized conference, the reimbursement may not exceed the maximum group rate published by the conference or activity sponsor, provided that such lodging is still available at the time of booking (Gov. Code, § 53232.2 (d)). A Director may elect to arrange alternative lodging; however, he or she would be limited to reimbursement at the group rate offered by the conference organizer if such lodging were available. If the group rate lodging is not available at the time of booking, the Director is limited to reimbursement for comparable lodging consistent with the written reimbursement policy of the agency, and taking advantage of any government rates available. Notwithstanding the reimbursement limits in an agency's written reimbursement policy, Directors are required to use government and group rates offered by providers of transportation and lodging services whenever available (Gov. Code, § 53232.2 (e)). Note that reimbursement of any expense must be authorized under the agency's written policy or Government Code section 53232.2 (d), or approved by the governing body in a public meeting before the expense is incurred. Retroactive authorization of reimbursement is not permitted (Gov. Code, § 53232.2 (f)). Public agencies should have clear policies guiding Directors as to the types of meetings for which compensation will be provided, and the nature and reimbursement rates of expenses for which reimbursement can legally be provided. An agency's enabling statute usually sets forth the authority for providing compensation of Directors and reimbursement for their expenses. Water Code section 20200 et seq. provides a procedure for increasing the per diem compensation rates above the amount set forth in an agency's enabling statute for a maximum of 10 days per month. Increases in the per diem rate are limited to 5% per year and may only be adopted by ordinance after a noticed public hearing (Gov. Code, §§ 20202 and 20203). Under Government Code section 53232.1(b), attendance at meetings and occurrences other than meetings of the governing body, its advisory committees, and conferences and organized educational activities, must be specifically authorized by a written policy adopted by the governing body at a public meeting in order to be eligible for payment of a per diem and expenses. These guidelines assume that per diem compensation is set under Water Code section 20202, and includes draft provisions for per diem and expense reimbursement to comply with the additional requirements of AB 1234 (Gov. Code, §§ 53232 - 53232.3). These proposed provisions take into consideration that members of a Board might be required to take vacation time or otherwise be absent from their regular employment in order to attend educational meetings on behalf of the public agencies they represent. Therefore, these proposed provisions provide for compensation for travel to and from, such meetings and occurrences. Meetings and other occasions which constitute "the performance of official duties" for which a member of the Board may receive per diem compensation may include, but are not limited to, meetings of other public agencies or water agencies, attendance at agency- related ceremonial functions, or formal appearances before or meetings with administrative, regulatory agencies, legislators and their staffs. Guidelines for Conduct and AB 1234 Compliance 1 11 Under AB 1234, the standard for reimbursement of expenses is "actual and necessary" (Gov. Code, § 53232.2). The use of the term "actual" indicates that an agency may not authorize a set reimbursement allowance that is paid whether or not the expense is incurred (for instance a monthly automobile allowance would not be permitted). Government Code section 53232.3 requires that the members of the governing body file expense reports on forms provided by the local agency in order to receive reimbursement for expenses. The reports must document that each claimed expense is allowed under the existing written expense reimbursement policy, or was approved by the Board in a public meeting before the expense was incurred. Unless an expense is clearly permitted under the public agency's existing policy, the Board can no longer authorize reimbursement after the fact. Another requirement for reimbursement is that the Director must provide a brief report of the meeting or event (not required to be in writing) at the next regular meeting of the governing body (Gov. Code, § 53232.3 (d)). Finally, Government Code section 53065.5 requires special districts, at least annually, to disclose any reimbursement paid by the district within the immediately preceding fiscal year of at least SI00 for each individual charge (including meat, lodging and transportation expenses) for services or products received. Although ACWA recommends against it, a Board may determine that the issuance of District/ Agency credit cards to Directors is necessary. Within these legal limitations, there are opportunities for Boards to exercise their discretion to develop policies which provide per diem compensation limits less than the maximums allowed by law and reasonable reimbursement maximums that are greater or less than the IRS standards. An agency's enabling act may also have limitations in addition to those provided in AB 1234 and Water Code sections 20200 et seq. Therefore, this section may require revisions to make it applicable to a particular agency. Sample language is shown below. The members of the Board of Directors will fully comply with the provisions of the Board's "Policy on Directors' Compensation and Expense Reimbursement" as set forth in this section. A. Compensation for Attendance at Conferences and Meetings Directors will be compensated at the daily rate (i.e., per diem) determined by the Board consistent with applicable law for attendance at meetings of the Board, including Board committee meetings, and for attendance at conferences and organized educational activities that are open to the public at which topics of general interest to the public or to public agencies are discussed. Directors will also be entitled to per diem compensation for attendance at tite following meetings and occurrences that constitute performance of official duties rendered as a member of the Board: o [list all other meetings and activities for which per diem compensation is authorized such as meetings of other public agencies whose activities affect the Director's agency; meetings of joint powers authorities of which the agency is a member; meetings with state or federal elected officials to discuss legislation sought by the agency; meetings of city and county governments, and the local agency formation commission; meetings of organizations 12 1 Association of California Water Agencies of which the agency is a member, including ACWA; and other activities for which the Board customarily authorizes attendance by Directors). Pursuant to Water Code section 20202, per diem compensation may not be paid for more than a total of 10 days in any calendar month. Such compensation will be provided in addition to reimbursement for any actual and necessary expense for meals, lodging and travel, incurred in attending any conference, meeting or other activity authorized by the District/Agency's written policy Reimbursement will be paid only if the Director submits a written expense report on a form provided by the agency setting forth the date, location and nature of the meeting or occurrence sufficient to document that the activity meets the reimbursement requirements of this policy, and gives a brief report of the meeting or occurrence at the next Board meeting following the event. In order for a Director to be paid a lawfully - established per diem for a meeting, or for reasonable and necessary travel time to and from a meeting, the meeting must be: (1) a "meeting" as defined in subdivision (a) of Government Code section 54952.2 of the Brown Act; (2) committee meetings of the public agency; (3) a conference or organized educational activity conducted in compliance with subdivision (c) of section 54952.2 of the Government Code:; or (4) other meetings or activities specifically listed in this section. B. Directors' Expenses 1. General Principles. Each member of the Board of Directors is encouraged to participate in those outside activities and organizations that in the judgment of the Board further the interests of the District/Agency. Expenses incurred by Directors in connection with meetings and activities authorized under Section A of this policy are reimbursable, in accordance with the limits set forth herein. The following rules apply: a. All expenses must be actually incurred and necessary for the performance of the Directors' duties, and Directors shall exercise prudence in all expenditures. b. This policy is intended to result in no personal gain or loss to a Director. c. Maximum limits for reimbursement are as follows, unless the Board at a public meeting in advance of the expense being incurred authorizes a higher amount: TraveLrrransportation: Air travel is authorized whenever, due to distance or time constraints, air travel is more economical than use of the Director's own vehicle for transportation to and from authorized meetings and events. Reimbursement for airfare shall not exceed the most economical coach fare available for the required travel dates from the airport nearest the Director's residence or place of business to the airport nearest the destination. Directors shall use the most economical means of transportation to and from the airport and the location of the meeting, conference or other authorized event, whether by rental car, taxi or airport shuttle. Provided the most economical transportation is used, Guidelines for Conduct and AB 1234 Compliance 1 13 Directors may be reimbursed the full cost actually incurred for car rental and fuel; cab fare with tips; or airport shuttle with tips. Reimbursement for tips shall not exceed _% [e.g. I.5 %1. Mileage reimbursement for use of the Director's own vehicle for travel to events outside the boundaries of the District shall be reimbursed at the rate of $._ per mile, or the current standard mileage reimbursement rate specified by the IRS for business travel if such rate is revised. [Note: Reimbursement in excess of that rate may be subject to being taxed as income.) Lodging: Lodging expenses actually and reasonably incurred by Directors in connection with attending meetings, conferences, educational activities or other authorized events at least 50 miles outside the District's service area will be reimbursed at a rate not to exceed $ per night. Lodging for the night prior to or after the meeting, conference, or other authorized event will be reimbursable only when the starting or ending time for the event makes it impractical to travel to or from the Director's residence on the same date as the activity. Meals: Reimbursement will be provided for meals while a Director is attending meetings, conferences or other activities authorized under this policy. Meals that are a part of the meeting, conference or activity, will be reimbursed at the actual cost. Other meal expenses actually incurred, including tips, will be reimbursed up to a maximum of $ per day or the following amounts for single meals: Breakfast ............................ $ Lunch............................... $ Dinner ............................... $ No reimbursement will be allowed for alcoholic beverages. [Note: AB 1234 does not specifically require separate limits for individual meals. A combined single limit for meals may be appropriate, if reasonable.] Incidental expenses: Incidental expenses for items actually and reasonably incurred in connection with attendance at meetings, conferences, and other authorized activities, including reasonable tips for luggage handling, telephone and facsimile charges, parking and similar expenses, will be reimbursed up to a maximum of $ per day. d. The most economical mode and class of transportation reasonably consistent with scheduling requirements will be used. In the event a more expensive class of transportation is used, the reimbursable amount will be limited to the cost of the most economical class of transportation available. 14 1 Association of California Water Agencies e. Upon incurring these expenses, Directors shall submit a request for reimbursement on the expense report form provided by the District, accompanied by evidence of payment of such expenses or receipts for all amounts. Expense reports shall clearly document that the expenses were incurred in connection with an authorized meeting, conference or other activity and that the amounts do not exceed the maximum limits set forth herein. f. All requests for reimbursement will be submitted to the District/Agency's Board (or its designee) within [state a reasonable time, e.g., thirty (30) days] after the expenses were incurred or expenditures made. Expenditures that are improper or otherwise not properly accounted for, or not consistent with this policy, will not be reimbursed. Where the District/Agency has paid such improper expenses, they will be promptly refunded to the Disvict/Agency or deducted from moneys otherwise due a Director. g. To implement the reporting requirements of Government Code section 53065.5, the District/Agency will prepare a list of the amount and purpose of each expense reimbursement made to each Director for the preceding fiscal year, which will be available to the public. It. Officials will be reimbursed for actual telephone and fax expenses incurred on district business. Telephone bills should identify which calls were made on district business. For cellular calls, when the District/Agency official has a particular number of minutes included in the official's plan, the official should identify the percentage of calls made on public business. i. Long -term parking should be used for travel exceeding 24 hours. j. No reimbursement shall be allowed for transportation, lodging, meals or incidental expenses of family members or guests of a Director traveling with the Director to an authorized event. 2. Use of District/Agency Credit Cards. While it is discouraged, if a Board authorizes Directors to be supplied with a credit card issued in the District/Agency's name, it is to be used only for District/Agency business. Credit card expenses must be reasonable and necessary to the furtherance of District/Agency business. The Board or its designee will periodically review each credit card statement. (Gov. Code, §§ 53065.5; Wat. Code, §§ 20200 et seq.) 3. Reports to Governing Board. At the regular meeting of the Board following any meeting, conference, educational activity or other authorized event for which per diem compensation or reimbursement is requested, the Director attending the event shall give a brief report of the meeting or event. If more than one Director of the District attended the same meeting or event, a joint report may be made. Reports may be written or oral, but in the event a written report is submitted, the Director shall give a brief oral summary of the report at the meeting following the event. Guidelines for Conduct and AB 1234 Compliance 1 15 4. Penalties for violation of reimbursement Policies. A Director who falsifies an expense report, or claims reimbursement in violation of the expense reimbursement policy, will be subject to one or more of the following penalties: (a) The loss of reimbursement privileges, (b) Restitution to the local agency, (c) Civil penalties for misuse of public resources pursuant to Government Code section 8314, (d) Prosecution for misuse of public resources pursuant to Penal Code section 424 In all matters relating to compensation and expenses, it is appropriate for elected directors to pose and consider this series of questions. • Does the late allow me to use public resources in this manner? • How does this particular expenditure benefit the public's interest as opposed to my own personal interest? • Is this expenditure aimed at currying personal favor with the would -be beneficiary of an expense? • If this particular expenditure were reported in the local newspaper, would it reflect well on my agency? Would it reflect well on me personally? • Would my next -door neighbor approve of my spending his or her tax dollars this way? Would he or she feel resentful? • Is this expenditure being made out of a sense of reward or entitlement? Questions Source: Institute for Local Government SECTION 13 CHANGES IN COMPENSATION This section suggests discretionary provisions to make clear that increases in compensation are acted on in a public meeting prior to the change. Sample language is shown below. Increases in the per diem compensation payable to Directors under this policy shall be made by ordinance adopted after a noticed public hearing held pursuant to Water Code section 20203. Such ordinance shall be effective no earlier that 60 days following adoption. Changes in the maximum rates for reimbursement of expenses shall be made at a public meeting of the Board of Directors. (Wat. Code, §§ 20200 et seq.) 16 1 Association of California Water Agencies SECTION 14 CANDIDATE'S STATEMENT This section reflects a discretionary Board action to include the requirements of Elections Code section 13313 in the agency's ethics guidelines. Sample language is shown below. A Director will not include false or misleading information in a candidate's statement for a general District/Agency election filed pursuant to Section 13307 of the Elections Code. (Elec. Code, §§ 13313.) SECTION 15 VIOLATION OF ETHICS POLICY Boards should specify their District/Agency's options for enforcing ethics policies, bearing in mind that Directors are entitled to due process regarding any allegations of wrongdoing and there is a need to protect the public interest, to promote collegiality among Directors, and to ensure the proper functioning of the agency. The proposed provisions of these guidelines are discretionary. Sample language is shown below. An actual or perceived violation of this policy by a Director should be referred to the President of the Board or the full Board of Directors for investigation and consideration of any appropriate action warranted. Appropriate action depends on the circumstances of the actual or perceived violation. Depending on the type of violation, the Board may determine a specific remedy or decide to report the violation to an appropriate authority. In all cases, the Board will pursue a course consistent with the public interest and the best interests of the Board and the District/Agency. Guidelines for Conduct and AB 1234 Compliance 1 17 RESOURCES WEB SITES Association of California Water Agencies. www.acwa.com Institute for Local Government. The Institute serves as a source of independent research and information for California's communities and their leaders. www.ilsg.org American Society for Public Administration. This organization has an interesting, values - based professional ethics code. www.aspanet.org/ethics/coe.html Center for the Study of Ethics in the Professions. Sponsored by the Illinois Institute of Technology, this site provides links to ethics codes online. www.iit.edu/departments /csep City Ethics. A collaborative effort with the Council on Governmental Ethics, this site features presentation materials from conferences and links to other ethics sites. www.cityethics.org Communities of Character. Communities of Character is a comprehensive and practical approach to character education and training which helps organizations define their core values. Groups identify the ideals that will shape behavior. www.communitiesofcharacter.org Ethics Toolkit..An interesting site offering a "toolkit" for adopting ethics codes, www.ethics. org /toolkit.html Independent Commission Against Corruption. This site has a 200 -plus page guide entitled "Practical Guide to Corruption Prevention." www.icac.org Ethics Codes and Campaigns. This site has information for candidates, media and the public about promoting voluntary codes of campaign conduct. www.campaignconduct.org 18 1 Association of California Water Agencies PUBLICATIONS Available from the Institute for Local Government, c/o the League of California Cities; (916) 658 -8257: Berman, Evan M., West, Jonathan P., Bonezek, Stephen J. (editors), The Ethics Edge, International City /County Management Association: 1998. Blanchard, Ken & O'Connor, Michael, Managing By Values, Barrett - Koehler Publishers: 1997. Josephson Institute of Ethics, Preserving the Public Trust: Five Principles of Public Service Ethics, Josephson Institute of Ethics: 1997. Kazman, Jane G. and Bonczek, Stephen J., Ethics in Action: Leader's Guide, International City- County Management Association: 1999. Kidder, Rushworth M., How Good People Mahe Tough Choices, Simon & Schuster: 1995. Lewis, Carol W., The Ethics Challenge in Public Service: A Problem Solving Guide, Jossey -Bass Publishers: 1991. Mackenzie, G. Calvin & Hafken, Michael, Scandal Proof: Do Ethics Laws Mahe Government Ethical? Brookings Institution Press: 2002. Wear Simmons, Charlene, Roland, Helen, Kelly- DeWitt, Jennifer, Local Government Ethics Ordinances in California, California Research Bureau: March 1998 (available online at www. library ea.gov /CRB /98/02/98002.pdf).a Local Agency Code of EthicsRev9_l.doc Available from the Association of California Water Agencies (91.6) 441 -4545: Institute for Local Self Government, A Local Official's Guide to Ethics Laws: Spring 2002. League of California Cities, Jenkins, Armento, Pierre, Carvalho, Corbett, Gillig, Hentschke, Hicks, Smith, Whelan, Open & Public III: A User's Guide to the Ralph M. Brown Act: 2000. Lemieux, Wayne K., Public Agency Official's Complete Source Book, 4th ed., Lexis Law Publishing: 1998. (Updates 2000, 2001). Guidelines for Conduct and AB 1234 Compliance 1 19 ACWA BOARD OF DIRECTORS 2006 -07 TERM ACWA President ACWA Vice President Immediate Affiliated Past President Region I Chair Region 1 Vice Chair Region 2 Chair Region 2 Vice Chair Region 3 Chair Region 3 Vice Chair Region 4 Chair Region 4 Vice Chair Region 5 Chair Region 5 Vice Chair Region 6 Chair Region 6 Vice Chair Region 7 Chair Region 7 Vice Chair Region 8 Chair Region 8 Vice Chair Region 9 Chair Region 9 Vice Chair Region 10 Chair Region 10 Vice Chair Communications Committee Chair Federal Affairs Committee Chair Finance Committee Chair Insurance to Personnel Committee Chair Local Government Committee Chair State Legislative Committee Chair Water Management Committee Chair Water Quality Committee Chair ACWAQPIA Vice President 20 1 Association of California Water Agencies Randy Fiorini, Turlock Irrigation District Glen D. Peterson, Metropolitan Water District of So.CA E.G. "Jerry" Gladbach, Castaic Lake Water Agency Paul Kelley, Sonoma County Water Agency Bill Suppa, Burney Water District Roger Sherrill, Rio Alto Water District Eric Larrabee, Western Canal Water District Louise Giersch, Tuolumne Utilities District Ane Deister, Ei Dorado Irrigation District Ed Winkler, Regional Water Authority Dave Peterson, San Juan Water District John Weed, Alameda County Water District Katy Foulkes, East Bay Municipal Utility District Don Mills, Lakeside Irrigation WD Aldo Sansoni, Henry Miller Reclamation District Bill Taube, Wheeler Ridge- Maricopa Water Storage District Sean Geivet, Terra Bella irrigation District Donald Hauser, Calleguas Municipal Water District Peter Kavounas, Castaic Lake Water Agency Joe Kuebler, Eastern Municipal Water District Steve Robbins, Coachella Valley Water District Saundra Jacobs, Santa Margarita Water District Merle Aleshire, Valley Center Municipal Water District Gary Arant, Valley Center Municipal Water District Greg Zlotnick, Santa Clara Valley Water District Mike Solomon, United Water Conservation District Dale Mason, Vallecitos Water District Dave Breninger, Placer County Water Agency Jess Seneca], La Puente Valley County Water District Chris Kapheim, Alta Irrigation District Pankaj Parekh, Los Angeles Department of Water br Power Joan C. Finnegan, Municipal Water District of Orange County Association of California Water Agencies Leadership Advocacy Information SAssociation of California Water Agencies Leadership Advocacy Information sinceigio 910/441 -4545 FAx 916 /325 -4849 www.acwa.com 910 K Street, Suite 100, Sacramento, California 95814 -3577 East Val ley Water District Board Memorandum From: Brian W. Tompkins /Chief Financial Officer Subject: Disbursements. Recommendation: Approve the attached list of accounts payable checks and payroll issued during the period December 5, 2008 through December 17. 2008. Background: Date: December 22, 2008 Accounts payable checks are shown on the attached listing and include numbers 217529 to 217769 for A total of $888,107.82. Tie source of funds for this amount is as follows: Unrestricted Funds $888,107.82 Payroll disbursed was for the period ended December 5, 2008 and included checks and direct deposits totaling $189,941.32. Director payroll disbursed was for the period ended November 30, 2008 and included check and direct deposits totaling $6,858.51. Total disbursements $1,084,907.65. Date: Friday, December 19, 2008 Time 09:07AM User: KATHY East Valle Water District Rage: 1 0t 5 Valley Report: 20600.rpt Check Register - Standard Company: EVWD As of: 12/19/2008 Bank Account: Citizens Business Bank 13110 00 -00- 000.0- 000 -00 -00 Check JI Tn Check Payee Clear Period Nbr Tp Tp Date ID Payee Name Date Post Amount OOOC101 - 217528 Missing 217:29 AP ZC 12/5/2008 MET001 METROPOLITAN WATER DIS 12/5/2008 06 -08 0.00 217630 AP CK 12/5/2008 MET002 METROPOLITAN LIFE INS CC 12/11/2008 06 -08 409.59 217631 AP CK 12/9/2008 MAR005 MARTIN - ROBERT E 12/11/2008 06 -08 2,000.00 217fi32 AP CK 12/10/200E 406001 406 REAL ESTATE SERVICE 06 -08 58.53 217533 AP CK 12/10/200E ADD002 ADDICTION MEDICINE CONS 06 -08 1,750.00 217£134 AP CK 12110/200E AIR005 AIRGAS WEST 06 -08 235.99 217535 AP CK 12110/200£ AME019 AMERIPRIDE UNIFORM SERI 06 -08 1,416.89 217536 AP CK 12110/200f ARR009 ARROWHEAD UNITED WAY 06 -08 75.00 217537 AP CK 12/10/200E ARR021 ARROYO INSURANCE SERVI 12/16/2008 06 -08 50.00 217538 AP CK 12110/200E ASC002 ASCENCIO^-OLGA D 06 -08 83.22 217539 AP CK 12110/200E ATT007 AT &T 06 -08 674.34 2-17540 AP CK 12110/200E BAR074 BARRY'S SECURITY SERVIC 12117/2008 06 -08 8,076.65 2.17541 AP CK 12/10/200E BAT002 BATTEEN -JOHN W 06 -08 3,655.00 217542 AP CK 121101200£ BEA006 BEAR COM 06 -08 174.78 217543 AP CK 12/10/200E BOL001 BOLL - MICHAEL 12/15/2008 06 -08 120.00 217544 AP CK 12/10/200E BRI009 BRITHINEE ELECTRIC 12/16/2008 06 -08 2,916.93 217:145 AP CK 12/10/200£ CAM004 CAMP DRESSER & MCKEE It 12/18/2008 06 -08 59,492.20 217546 AP CK 12110/200E CEN009 CENTURY 21 LOIS LAUER RE 06 -08 226.98 217:147 AP CK 12/101200£ GEN015 CENTURY 21 TOWN & COLIN 06 -08 20.08 217548 AP CK 12/101200£ CHE007 CHEM -TECH INTERNATIONA 06 -08 16,990.41 217549 AP CK 12/10/200f CIT007 CITY OF HIGHLAND 06 -08 50.00 217550 AP CK 12/10/200E CIT018 CITISTREET 06 -08 8,125.50 217551 AP CK 12110/200E CLI002 CLINICAL LAB OF S B 12/17/2008 06 -08 11,267.00 217552 AP CK 12/101200E COL038 ARMSTRONG - COLDWELL B, 06 -08 87.92 217553 AP CK 12/10/200E CON035 CONTRERAS- SALVADOR 06 -08 77.79 217554 AP CK 12/101200E CO0025 COUNTY OF SAN BERNARDI 06 -08 906.00 217555 AP CK 12/101200E CRE001 CREST CHEVROLET 12117/2008 06 -08 10.16 217556 AP CK 12/10/200E DEL045 DELTA DENTAL OF CALIFOR 12/18/2008 06 -08 973.82 217557 AP CK 12./10/200E DIB001 DIB'S SAFE & LOCK SERVICE 06.08 65.66 217:158 AP CK 12110/200£ DIC009 DICKENSON -JOANN 06 -08 33.67 217559 AP CK 12110/20DE DIR004 DIRECTV 06 -08 69.98 217560 AP CK 12/10/200E EAS003 East Valley Water District 12115/2008 06 -08 672.50 217561 AP CK 12/10/200£ EAS003 East Valley Water District 12/15/2008 06 -08 400.00 217562 AP CK 12/10/200E EQU004 REALTY - EQUITY PLUS 06 -08 59.17 217563 AP CK 12/10/200E ES13001 E.S. BABCOCK & SONS, INC 06 -08 525.00 217:164 AP CK 12/10/200E EVE001 EVERSOFT, INC 06 -08 151.80 217:565 AP CK 12/10/200E EXP002 EXPERIAN 12/18/2008 06 -08 77.00 217.566 AP CK 12/10/200E FAC002 FACULTY PHYSICIANS AND. 06 -08 1,365.00 217.567 AP CK 12110/200£ FA1002 FAIRVIEW FORD SALES,INC 12/18/2008 06 -08 228.53 217568 AP CK 1'7.1101200£ FAR018 FARIGHI- KHALED 06 -08 64.61 217569 AP CK 12/101200E FIR008 FIRST AMERICAN CORELOG 06 -08 315.00 217570 AP CK 12110/200E FLE011 FLEET SERVICES /COLTON' 12118/2008 06 -08 61.46 217571 AP CK 12/101200£ FO0002 FOUNDATION FOR CROSS C 06 -08 869.50 217572 AP CK 12/101200£ FRA001 FRANCHISE TAX BOARD 06 -08 448.78 217572 AP VC 12/111200£ FRA001 FRANCHISE TAX BOARD 06-08 448.78 217573 AP CK 12/10/200E FRA026 FRANKS FENCE & SUPPLY C 12117/2008 06 -08 2,950.00 217574 AP CK 12/10/200f GEL001 GELLER -ALLEN 06 -08 121.07 217575 AP CK 12/10/200E GEN007 GENUINE PARTS COMPANY 12/18/2008 06 -08 868.92 217576 AP CK 12/10/200E GON080 GONZALES-JENNIE 06 -08 22.81 217577 AP CK 12/10/200E GON081 GONZALEZ-GERMAN 06 -08 20.13 217578 AP CK 12/101200£ HAP004 HAPPY PORTABLES, INC 12/17/2008 06 -08 108.00 217579 AP CK 12110/200£ HAR016 HARNITCHECK -KAREN L 06 -08 11.93 217580 AP CK 12/101200f HAT001 HATFIELD BUICK 12/18/2008 06 -08 253.91 217581 AP CK 12/10/200£ HEN004 HENDRICKSEN- JUSTINE 12/17/2008 06 -08 79.00 217582 AP CK 12110/200E HIC002 HICKS - RICHARDSON ASSO 06 -08 5,000.00 217583 AP CK 12110/200£ HIC008 HICKS -JAMES 06 -08 77.80 217584 AP CK 12110/200E HIG021 HIGHLAND EQUIPMENT REN 06 -08 67.20 Date: Friday, December 19, 2008 Time: 09:07AMI User: KATHY Bank Account: Citizens Business Bank East Valle Water District Y Check Register - Standard As of: 12/19/2008 13110 00 -00- 000 -0- 000 -00 -00 Page: Report : Company: 2 of 5 20600.rpt EVWD Check JI Tn Check Payee Clear Period Nbr Tp Tp Date ID Payee Name Date Post Amount 217585 AP CK 12/10/200£ HIG023 CARWASH- HIGHLAND HANC 06 -08 132.90 217586 AP CK 121101200£ HIL028 INC - HILARY 06 -08 8.15 217E87 AP CK 1 2 /1 012 0 0£ HON003 HONEYFIELD -JAY CARL 06 -08 161.89 217588 AP CK 12/10/200E HUB001 HUB CONSTRUCTION SPECI 12/18/2008 06 -08 683.15 217E89 AP CK 12/10/200£ HYD001 HYDRO -SCAPE PROD. INC. 12118/2008 06 -08 639.66 217590 AP CK 12/101200E INF005 INFOSEND, INC 12/18/2008 06 -08 11,201.77 217E91 AP CK 12110/200£ INL005 INLAND WATER WORKS SUF 12/18/2008 06 -08 41,606.77 217E92 AP CK 12110/200£ JAC038 JACK HENRY & ASSOCIATE,' 06 -08 1,477.34 217E93 AP CK 12/10/200£ JIM015 JIMENEZ -JUANA 12/17/2008 06 -08 23.11 217594 AP CK 12/10/200£ JOH070 JOHNSON - JUSTIN 06 -08 45.42 217595 AP CK 12110/200E JON003 JONES -VIKKI 12/18/2008 06 -08 83.72 217696 AP CK 12110/200£ JRF001 J.R. FREEMAN CO., INC 12/18/2008 06 -08 70.06 217697 AP CK 12/10/200£ KEE002 KEENAN SUPPLY 06 -08 132.25 217998 AP CK 12/10/200E KES001 SANDER A. KESSLER & ASS, 12/18/2008 06 -08 16,657.92 217699 AP CK 12/101200£ KIM022 KIM - FRANCIS 06 -08 57.58 217600 AP CK 12/10/200£ KLH001 K & L PLUMBING SUPPLY 06 -08 58.25 217601 AP CK 12 110 /200E LAN026 LANCASTER- CYNTHIA 06 -08 19.71 217602 AP CK 12/10/200E LAW003 LAWSON PRODUCTS,INC 06 -08 518.69 217603 AP CK 121101200£ LDT001 TOPLIFF JR. -LES D 06 -08 296.56 217604 AP CK 12110/200£ LIB002 LIBBY- ISABEL 06 -08 48.44 217605 AP CK 12/10/200£ LL0001 L.L.U. RADIOLOGY MED GRF 12/17/2008 06 -08 46.00 217606 AP CK 121101200E LUN009 LUNA -JOSE 06 -08 308.96 217607 AP CK 12/10/200E L00002 LUU -QUANG P 06 -08 130.67 217608 AP CK 12/101200E LY003 LY -CHANH C. 06 -08 86.41 217609 AP CK 12110/200f LYL001 LYLES- DANIEL K 06 -08 14.75 217610 AP CK 12/101200E MACO28 MACHADO- ROBERT 06 -08 24.24 217611 AP CK 12/10/200E MACO29 MACDONALD -ANNA 06 -08 68.03 217612 AP CK 12110/200£ MAR150 MARTINEZ -NOE 12/17/2008 06 -08 15.81 217613 AP CK 12/10/200E MEN032 MENDEZ -LUCIA 06 -08 8.01 217614 AP CK 12/10/200£ OAK004 REALTY GROUP -OAK TREE 12/18/2008 06 -08 54.32 217615 AP CK 12/10/200E OFF007 OFFICETEAM 12/18/2008 06 -08 940.08 217616 AP CK 121101200E OR0010 OROZCO -JULIA 06 -08 67.16 217617 AP CK 12/10/200E OTH001 OTHMAN -SAM 06 -08 87.80 217618 AP CK 12/10/200E PA1002 PAID -2 -PARTY 06 -08 875.00 217619 AP CK 12110/200E PEA005 PEARPOINTJNC 12/18/2008 06 -08 166.68 217620 AP CK 121101200E PED006 PEDRAZA- FRANCISCO 06 -08 17.73 217,321 AP CK 12/101200E PER007 PERFORMANCE METERS INI 12/18/2008 06 -08 18,867.91 217622 AP CK 12/10/200£ PIT001 PITNEY BOWES 06 -08 255.37 217623 AP CK 12/10/200£ PL0001 PLOSCARIU- DANIEL 06.08 23.03 217624 AP CK 12/10/200£ PRE022 PREMIER NATIONAL REALTI 12/18/2008 06 -08 56.47 217625 AP CK 12/10/200£ PR0032 PROMINENT SYSTEMS, INC 06 -08 20,809.00 217626 AP CK 12110/200£ QUA002 QUALITY PROPERTY MGMT 12/17/2008 06 -08 59.65 217,327 AP CK 12/10/200£ RAN012 ANDREAS COMP - RANCHO £ 06 -08 15.21 217,328 AP CK 12/10/200£ REA015 EMPORIUM -REAL ESTATE 06 -08 23.36 217,329 AP CK 12/10/200£ RECO03 RECENDEZ- CARMEN 06 -08 75.94 217,330 AP CK 12/10/200E REE019 REESE- DEBORAH 06 -08 83.67 217,331 AP CK 12/10/200E RMA001 RMA GROUP 06 -08 1,280.00 217,332 AP CK 12/10/200E ROB049 ROBINSON -RITA R 06 -08 13.94 217,333 AP CK 121101200E ROY004 ROYBAL- RAYMOND 06 -08 55.00 217334 AP CK 1 211 012 0 0E SAF001 SAFETY KLEEN CORP 06 -08 236.30 217,335 AP CK 12110/200£ SAF007 CORPORAITON- SAFETY GE 06 -08 102.15 217336 AP CK 12/10/200E SAN007 SAN BDNO PUBLIC EMPLOY, 12/1812008 06 -08 687.01 217537 AP CK 12/10/200E SAN009 SAN BERNARDINO -CITY OF 06 -08 3,002.56 217538 AP CK 12/10/200E SE1004 SEIBEL -CHRIS 06 -08 32.65 217539 AP CK 12/101200E S00003 SO CAL PUMP & WELL SERV 12/17/2008 06 -08 12,436.00 217340 AP CK 12/10/200£ S00004 SO CAL EDISON COMPANY 1211712008 06 -08 53.87 217541 AP CK 12/101200E STA027 STATE WATER RESOURCES 06 -08 8,029.00 217542 AP CK 12110/200E STA055 STATE DISBURSEMENT UNI' 06 -08 1,027.00 Date: Friday, December 19, 2008 Page: East Valley Water District 3 of 5 Time: 09:07AM Report : 20600.rpt User: KATHY Check Register - Standard Company: EVWD As of: 12/19/2008 Bank Account: Citizens Business Bank _- 13110 00 -00- 000 -0- 000 -00 -00 Checc JI Tn Check Payee Clear Period Nbr Tp Tp Date ID Payee Name Date Post Amount 217643 AP CK 12/10/200£ TAY014 TAYLOR -JEVON L 12/16/2008 06 -08 101.00 217644 AP CK 12/10/200E TOL006 BROTHERS -TOLL 06 -08 18.86 217645 AP CK 12/10/200£ TRI018 TRI- COUNTY PUMP COMPAI, 12116/2008 06 -08 7,465.25 217646 AP CK 12/10/200E UCN001 UCN /PAYMENT CENTER #54 06 -08 881.26 217647 AP CK 12110/200£ UND002 UNDERGROUND SERVICE A 12117/2008 06 -08 94.50 217648 AP CK 121101200E UN1002 UNITED PARCEL SERVICE 12/18/2008 06 -08 17.00 217649 AP CK 12/10120DE UN1021 UNITED SITE SERVICES OF 06 -08 232.06 217650 AP CK 1 211 0 /2 0 0£ UN1023 United States Treasury 06 -08 100.00 217651 AP CK 12/101200E VER003 VERIZON WIRELESS 12/18/2008 06 -08 379.53 217652 AP CK 12/101200E VIC004 Victor Buick - GMC Truck, Inc 06 -08 39,669.53 217653 AP CK 12110/200E VIS002 VISTA PAINTS 12118/2008 06 -08 385.54 217654 AP CK 121101200£ WAT004 WATER EDUCATION FOUND 06 -08 3,500.00 217655 AP CK 1200/200E WAX001 WAXIE SANITARY SUPPLY 06 -08 790.21 217656 AP CK 121101200f WES037 WESTERVELT -WILMA 06 -08 50.37 217E57 AP CK 12/101200E ZAR005 ZARAGOZA- CYNTHIA 06 -08 68.35 217E.58 AP CK 12110/200E ZEE001 ZEE MEDICAL INC. 06 -08 371.73 217659 AP CK 12/111200£ 500023 SOUTHWEST PIPELINE 06 -08 28,536.87 217E.60 AP CK 12/11/200E SCA001 GARY SCAVONE 06 -08 448.78 217661 AP CK 12/17/200E ACW003 ACWA HEALTH BENEFITS At 06 -08 4,842.32 217662 AP CK 12117/200f ADPOO2 ADP 06-08 562.60 217063 AP CK 12117/200E ADV001 ADVANCED TELEMETRY SY! 06 -08 38,411.22 217664 AP CK 121171200E ADVO07 ADVANTAGE REO 06 -08 60.82 217065 AP CK 12/17/200£ ALL001 ALLIED REFRIGERATION 06 -08 255.68 217066 AP CK 12/17/200E AME026 AMERIGAS 06 -08 29.87 217£167 AP CK 12/17/200E AQ0002 AQUA BACKFLOW & CHLORI 06 -08 300.00 217668 AP CK 12/17/20DE ARM002 ARMORCAST 06 -08 13,103.96 217669 AP CK 12/17/200E ASS008 ASSOC OF THE SAN BERNAI 06 -08 275.00 2171370 AP CK 12/17/200E ASS009 ENGINEERS, INC- ASSOCIA3 06 -08 742.61 217671 AP CK 12117/200£ BAR074 BARRY'S SECURITY SERVIC 06 -08 3,593.94 217672 AP CK 12./17/200E BAS009 BASIN WATER 06 -08 276,357.65 217673 AP CK 12/17/200E BAS017 BLECHEVBASELINE MACH -: 06 -08 362.15 2171174 AP CK 12/17/200E BAT002 BATTEEN -JOHN W 06 -08 125.00 217675 AP CK 12/17/200£ BL0002 REALTY - BLUESTONE 06 -08 85.85 217676 AP CK 12/17/200E BL0003 BLUMENSTEIN -PETER 06 -08 80.09 217677 AP CK 12/17/200£ BON013 JOSEPH E BONADIMAN 06 -08 1,501.00 217678 AP CK 12/17/200E CAM040 CAMACHO- MARTHA 06 -08 63.63 217,579 AP CK 12/17/200E CAM041 CAMARGO- BULMARO 06 -08 17.47 217380 AP CK 12/171200£ CE1001 LLC -CEI DATE 06 -08 14,767.72 217581 AP CK 12/17/200£ CFH001 1 LLC -CF HIGHLAND 06 -08 121.99 217582 AP CK 12/17/200£ CH1016 CHIANGLIN -MEI -MEI 06 -08 151.70 217683 AP CK 12/17/200E CRE001 CREST CHEVROLET 06 -08 241.62 217684 AP CK 12117/200£ CUR011 CURRAN -TINA L 06 -08 76.06 217685 AP ZC 12/171200E DAN018 DANG -STEVE H 12/17/2008 06 -08 0.00 217686 AP CK 12/17/200£ DHL001 DHL EXPRESS (USA) INC. 06 -08 16.78 217687 AP CK 1 211 712 00E DIC009 DICKENSON -JOANN 06 -08 44.35 217688 AP CK 12/17/200E EAS013 EAST VALLEY PROPERTY M 06 -08 56.64 217689 AP CK 12117/200£ ESS001 E.S. BABCOCK & SONS, INC 06 -08 752.00 217690 AP CK 12/17/200£ ETH004 ETHERTON -LEIDA L 0"s 505.00 217691 AP CK 12h7/200E EW1001 EWING IRRIGATION PRODU( 06 -08 38.83 217692 AP CK 12/17/200E FLE011 FLEET SERVICES /COLTON - 06 -08 37.39 217693 AP CK 12/171200£ FON007 FONTAINE -LOUIS 06 -08 70.50 217694 AP ZC 12117/200£ FRA001 FRANCHISE TAX BOARD 12/17/2008 06 -08 0.00 217695 AP CK 12/17/200£ GAB001 GABRIEL EQUIPMENT CO 06 -08 710.80 21 ?696 AP VC: 121171200E GEN007 GENUINE PARTS COMPANY 06 -08 0.00 217697 AP VC 12/17/200E GOM036 GOMEZ -ANA 06 -08 0.00 211698 AP VC 12/17/200E HAC001 HACH COMPANY 06 -08 0.00 21-,699 AP VC; 12/17/200E HAR049 HART HIGHLAND LLC 06 -08 0.00 217700 AP VC 12/17/200£ HIL028 INC - HILARY 06 -08 0.00 Date: Friday, December 19, 2008 East Valle Water District Page: 4 of 5 Time: 09:07AM Y Report: 20600.rpt User KATHY Check Register - Standard Company: EVWD 217701 As of: 12/19/2008 12/17/200E IND005 INDUSTRIAL RUBBER & SUP Bank Account: Citizens Business Bank 13110 00 -00- 000 -0- 000 -00 -00 217702 AP VC Check JI Tn Check Payee Clear Period Nbr Tp Tp Date ID Payee Name Date Post Amount 217701 �- AP VC 12/17/200E IND005 INDUSTRIAL RUBBER & SUP 06 -08 0.00 217702 AP VC 121171200£ INLOO4 INLAND DESERT SECURITY 06 -08 0.00 217703 AP VC 12/17/200E INL005 INLAND WATER WORKS SUF 06 -08 0.00 217704 AP VC 1 211 712 0 0E INT005 INTERSTATE BATTERY 06 -08 0.00 217705 AP VC 12/171200£ JRF001 J.R. FREEMAN CO., INC 06 -08 0.00 217706 AP VC 12/17/200E KIR011 ENTERPRISES- KIRCHNAVY 06 -08 0.00 2177 07 AP VC 12/17/200£ KON004 KONICA MINOLTA BUSINESE 06 -08 0.00 217708 AP VC 12117/200f LAN025 Landmark Retail Group, LLC 06 -08 0.00 217709 AP VC 12/171200f LAN026 LANCASTER- CYNTHIA 06 -08 0.00 217710 AP VC 12/171200£ LAW002 LAW PLUMBING CO 06 -08 0.00 217711 AP VC 121171200f LAW003 LAWSON PRODUCTS,INC 06 -08 0.00 217712 AP VC 12/17/200£ LOP061 LOPEZ - LUPITA 06 -08 0.00 217713 AP VC 12/171200E MCC056 Ryan McCarty 06 -08 0.00 217714 AP CK 12/17/200£ MIL001 MILOBEDZKI -JACEK 06 -08 800.00 217714 AP VC 12/17/200£ MIL001 MILOBEDZKI -JACEK 06 -08 - 800.00 217115 AP CK 12/17/200£ MOR020 MORTON SALT 06 -08 2,944.22 217716 AP CK 12/17/200E MOR081 SERV- MORTGAGE CONTRA 06 -08 57.10 217717 AP CK 12117/200t MOR083 MORENO -PERLA 06 -08 12.03 217718 AP CK 12/17/200£ MP0001 PARTNERSI -MP OPPORTUN 06 -08 84.20 217719 AP CK 12/17/200E NET005 NETCOMP TECHNOLOGIES, 06 -08 135.00 217720 AP CK 12/17/200E NEX001 NEXTEL COMMUNICATIONS 06 -08 2,432.90 217721 AP CK 12/17/200£ NGU065 NGUYEN -TONY 06 -08 47.53 217722 AP CK 12/17/200£ NGUO66 NGUYEN -HANG 06 -08 75.62 217723 AP CK 121171200E PAD011 CBSRR -LORIE PADORE 06 -08 44.83 217724 AP CK 12/171200E PAR052 PARRAS- VIRGINIA 06 -08 58.16 217725 AP CK 12/17/200E PAY006 PAYAN -PETRA 06 -08 14.24 217726 AP CK 12117/200E PIP004 PIPER- WALLACE 06 -08 11.15 217727 AP CK 12/17/200E PRE022 PREMIER NATIONAL REALTI 06 -08 32.65 217728 AP CK 12/17/200E REA013 SERVICES-REALPRO REO 06 -08 97.82 217729 AP CK 12/17/200E REF001 REFUSE DEPT CITY OF S B 06 -08 3,093.48 217730 AP CK 12/17/200f RIV033 RIVERA- ANDRES 06 -08 32.35 217731 AP CK 12117/200£ ROQ001 ROQUET PAVING 06 -08 19,854.36 217732 AP CK 12117/200E SAF003 SAF -T -FLO 06 -08 5,173.93 217733 AP CK 12/17/200E SCH017 SCHECTMAN CONSTRUCTIC 06 -08 63.87 217734 AP CK 12/17/200£ SEN001 SENTRY -TECH SYSTEMS, L. 06 -08 2,270.00 217735 AP CK 12/17/200£ SM1059 SMITH - CYNTHIA 06 -08 16.79 217736 AP CK 12/17/200£ S00002 SO CAL GAS COMPANY 06 -08 256.96 217737 AP CK 12/17/200£ S00004 SO CAL EDISON COMPANY 06 -08 1,730.29 217738 AP CK 12/171200f SPE015 SPECIAL DISTRICT RISK MG 06 -08 619.83 217739 AP CK 12.1171200E ST0026 STOWERS -MARIO 06 -08 30.36 217'740 AP CK 12/17/200E SYS002 SYSTEMS SOURCE, INC. 06 -08 1,852.78 217741 AP CK 12/17/200£ TH0044 THOMPSON -ROSE 06 -08 31.70 217742 AP CK 12/171200£ UN1002 UNITED PARCEL SERVICE 06 -08 17.00 217743 AP CK 12/17/200£ USA006 USA MOBILITY WIRELESS, It 06 -08 322.15 217744 AP CK 12/17/200£ USB003 U.S. BANCORP SERVICE CEI 06 -08 23,948.83 217745 AP CK 12/17/200£ UTI001 UTILITY SUPPLY OF AMERIC 06 -08 283.39 217746 AP ZC 12/17/200E VAS025 VASQUEZ- RICARDO G 12/17/2008 06 -08 0.00 217747 AP CK 12117/200£ VER004 VERIZON CALIFORNIA 06 -08 92.01 217748 AP CK 12/171200£ VUL001 VULCAN MATERIALS COMW 06 -08 1,209.88 217749 AP CK 12/17/200E WIN015 LLC - WINDDANCER 06 -08 4144 217750 AP CK 12/171200£ WIR003 WIRELESS WATCHDOG, LLC 06 -08 252.00 217751 AP CK 12/17/200£ GEN007 GENUINE PARTS COMPANY 06 -08 44.59 217752 AP CK 12/171200E GOM036 GOMEZ -ANA 06 -08 3.14 217753 AP CK 12/17/200£ HAC001 HACH COMPANY 06 -08 264.35 217754 AP CK 12/17/200£ HAR049 HART HIGHLAND LLC 06 -08 44.43 217755 AP CK 12117/200E HIL028 INC - HILARY 06 -08 35.88 217756 AP CK 12/17/200E IND005 INDUSTRIAL RUBBER & SUP 06 -08 536.10 217757 AP CK 12/171200f INL004 INLAND DESERT SECURITY 06 -08 359.60 Date: Friday, December 19, 2008 Time: 09:07AM User: KATHY Bank Account: Citizens Business Bank East Valley Water District Check Register - Standard As of: 12119/2008 13110 00 -00- 000 -0- 000 -00 -00 Page: 5 of 5 Report: 20600.rpt Company: EVWD Chect JI In Check Payee Clear Period Nbr Tp Tp Date ID Payee Name Date Post Amount 217758 AP CK 12117/200£ INL005 INLAND WATERWORKS SUF 06 -08 18,319.56 217759 AP CK 12/17/200£ INT005 INTERSTATE BATTERY 06 -08 170.42 217780 AP CK 12117/200£ JRF001 J.R. FREEMAN CO., INC 06 -08 30.19 217761 AP CK 12117/200£ KIR011 ENTERPRISES — KIRCHNAVY 06 -08 86.94 217762 AP CK 12117/200£ KON004 KONICA MINOLTA BUSINES: 06 -08 319.01 217763 AP CK 12/171200E LAN025 Landmark Retail Group, LLC 06 -08 137.16 217764 AP CK 12 117 /200E LAN026 LANCASTER— CYNTHIA 06 -08 61.45 217765 AP CK 12/17/200£ LAW002 LAW PLUMBING CO 06 -08 78,963.75 217766 AP CK 12117/200£ LAW003 LAWSON PRODUCTSJNC 06 -08 237.59 217767 AP CK 12117/200E LOP061 LOPEZ— LUPITA 06 -08 400.00 217768 AP CK 12117/200£ MCC056 Ryan McCarty 06 -08 63.20 217769 AP CK 12117/200E MIL001 MILOBEDZKI —JACEK 06 -08 800.00 Check Count 243 Bank Account Total 888,107.62 Count Amount Paid Regular 219 889,356.60 Hand 0 0.00 Void 20 - 1,248.78 Stub 0 0.00 Zero 4 0.00 Mask 0 0.00 Outstanding 0 0.00 Unused 0 0.00 243 888,107.82 Y "0 Tf East Val ley Water District Board Memorandum DATE: November 25, 2008 From: Brian W. Tompkins / Chief Financial Officer Subject: General Manager's Expenses. Recommendation: Approve the attached list of payments and reimbursements for General Manager expenses during the period December 5, 2008 through December 17 ,2008. Background: Business and Travel expenses incurred by the General Manager and paid during the reporting period stipulated above totaled $0.00. A summary of theses expenses by authorized payment methods follows: American Express — R Martin American Express — J Hendricksen CalCard — R Martin CalCard -- J Hendricksen CalCard — E Bateman Direct Reimbursement Total 0.00 Draft: December 15, 2008 FOURTH AMENDMENT AGREEMENT TO DEVELOP AND ADOPT AN INSTITUTIONAL CONTROLS GROUNDWATER MANAGEMENT PROGRAM N 7 'Phis Fourth Amendment to the Agreement to Develop and Adopt an Institutional Controls 8 Groundwater Management Program ("Fourth Amendment's is entered into and effective this 31st 9 day of December, 2008 by and among the following parties (collectively, the "Parties': the City of 10 San Bernardino and the City of San Bernardino Municipal Water Department; San Bernardino 1 I Valley Municipal Water District; Western Municipal Water District of Riverside County; City of 12 Riverside; West Valley Water District; East Valley Water District; City of Colton; and Riverside 13 Higliland Water Company. 14 15 Recitals 16 17 A. Between December 29, 2004 and February 2, 2005, the Parties entered into the 18 Agreement to Develop and Adopt an Institutional Controls Groundwater Management Program 19 (the "ICSA', which agreement called for the collaborative development of an institutional controls 20 groundwater management program (the "ICSA Program'. The ICSA has been extended by means 21 of three amendments and will terminate on December 31, 2008, unless extended by unanimous 22 consent of the Parties. 23 24 B. During 2005, 2006, 2007 and 2008, the Parties have worked diligently to improve the 25 existing groundwater models of the San Bernardino Basin Area in order to be able to develop the 26 ICSA Program based on the best available technical information. 27 28 C. The Parties anticipate that the improvements to the groundwater models of the San 29 Bernardino Basin Area will be completed during the first quarter of 2009 and that modeling results 30 will be available during the second quarter of 2009. The Parties intend to work diligently to reach a 31 final settlement, as contemplated by the ICSA, by December 31, 2009. 32 Fourth Amendment to ICSA December 2008 Page 1 of 5 972M..) Draft: December 15, 2008 33 D. The Parties wish to extend the term of the ICSA and update the table of pre - 34 approved extractions to reflect a proposed change on the location of extractions by San Bernardino 35 Valley Municipal Water District as shown in revised Exhibit.Bld, which is attached hereto and 36 incorporated herein by reference. 37 38 Agreements 39 40 The Parties agree as follows: 41 42 1. Extension of the ICSA. The term of the ICSA is hereby extended from December 31, 2008 to 43 December 31, 2009. 44 45 2. Modication of Exhibit B 1 d. Exhibit B1 d to the ICSA is hereby amended asset forth in 46 Exhibit 1, which is attached hereto and incorporated herein by reference, in order to allow 47 :for the proposed change in the location of extractions by San Bernardino Valley Municipal 48 Water District from the 9th Street and Perris Street wells to new wells located in the areas 49 shown in the revised exhibit. 50 51 3. Reviex of Pre Approved Activities. The Parties agree that, if requested in writing by a Party 52 claiming hardship from the application of an existing extraction limit, they will negotiate in 53 good faith to modify such pre - approved limit to avoid hardship. 54 55 4. Relationship to ICSA. Save as expressly provided in paragraphs 1 through 3 above, nothing in 56 this Fourth Amendment shall be construed as modifying any term or provision of the ICSA. 57 58 59 972980.1 -- Signatures on Following Pages -- Fourth Amendment to ICSA December 2008 Page 2 of 5 59 CITY OF COLTON 60 61 62 63 By:_._ 64 Eric Fraser 65 Director of Water & Wastewater 66 67 Approved as to form only: 68 69 70 71 By:_ 72 Dean Dedeth 73 Best, Best & Krieger LLP 74 75 CITY OF RIVERSIDE 76 77 78 79 By:__ 80 Bradley J. Hudson 81 City Manager 82. 83 Approved as to form only: 84 85 86 87 88 Susan Wilson 89 Deputy City Attorney 90 91 CITY OF SAN BERNARDINO 92 93 94 95 By:___ _ 96 ]Mayor Pro Tern 97 98 Approved as to form and legal content: 99 100 101 1.02 By:_._ _ 103 Thomas N. Jacobson 104 105 9]2980.1 Draft: December 15, 2008 Dated: Dated: Dated: ATTEST: Rachel Clark, City Clerk I11: il: KIII1-1 Fourth Amendment to ICSA December 2008 Page 3 of 5 Draft: December 15, 2008 106 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 107 1.08 109 110 By:___ _ 1.11 Stacey Aldstadt 112 General Manager Dated: , 2008. 113 114 Approved as to form only: 115 116 117 118 By:_— _ 1.19 Thomas N. Jacobson 120 121 122 EAST VALLEY WATER DISTRICT 1.23 1.24 125 1.26 By:___ _ 127 Robert E. Martin 128 General Manager Dated: 2008. 1.29 130 Approved as to forrn only: 131 132 133 134 By:_� 135 Steven M. Kennedy 136 Brunick, McElhaney & Beckett 137 138 RIVERSIDE HIGHLAND WATER COMPANY 139 140 141. 42 By:-___ :143 :Don Hough 144 General Manager Dated: 2008. :145 146 Approved as to fonn only: 147 148 149 150 By: -- 151 William J. Brunick 152 Brunick, McElhaney & Beckett 153 Fourth Amendment to ICSA December 2008 Page 4 of 5 9929801 Draft: December 15, 2008 153 SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT 154 155 156 157 By:___ _ 158 Randy Van Gelder 159 General Manager Dated: -2008. 160 161 Approved as to fonn only: 162 163 164 165 By: _ 166 David R.E. Aladjem 167 Downey Brand LLP 168 169 WEST VALLEY WATER DISTRICT 170 171 172 173 By:_ 174 Anthony Araiza 175 General Manager Dated: -2008. 176 177 Approved as to form only: 178 179 180 181 By:� 182 Gerald W. Eagan 183 Redwine and Sherrill 184 185 WESTERN MUNICIPAL WATER DISTRICT OF RIVERSIDE COUNTY 186 187 188 189 By:._ 190 John V. Rossi 191 General Manager Dated: 12008. 192 193 Approved as to form only: 194 195 196 197 By: _ 198 Jill N. Willis 199 Best, Best & Krieger LLP Fourth Amendment to ICSA December 2008 Page 5 of 5 9]2980.1 Exhibit-, B 1 d Preapproved Areas' Rialto & West Valley Management Zone Boundary for Extraction' Management Zone Boundary for Spreading2 City of San Bernardino Volume t Wells' by Owner • City of Rialto • West Valley Water District �S San Bernardino Basin Area Proposed Well Site The RIALTO & WEST VALLEY Preapproved Area' of the Management Zone of the US EPA 2004 Consent Decree for the Newmark & Muscoy Groundwater Contamination Superfund Site 0 500 1,000 1,500 2,000 Feet Map Revised December 12, 2008 "in ffim iIs � i �� 1/11 > �` 11 // f 11 1/ /1 1M /111 /1>%� 111/ i �i� 1111 � rr ' As provided by W MWD. As provided by the San Bernardino Municipal Water Department on December 10, 2004. a Per the Western-San Bernardino Watermaster. Western Municipal Water District at al. vs. East San Bernardino County Water District at al.; Case No. 78426 Superior Court County of Riverside. mfe San Bemsrano vdby wnbbel W D'c tM1 vepewe uses W¢ Nbn Wnft Ifts m p�ryoaeaand nlsnd IM ftlf «,..YKi .JN W,,useby~.T MrdmetbnispoNdedbsii.Fve rinlumebonmay at1Nf beobbMedby wdacag Ne GS DeDedment iN mliMp (90a)38r -Yl]S mr Ca //1111 111111 INS r.. �r �r /11�1�111 m m ��IIIII� IL /IIILII N Y' 1S f "in ffim iIs � i �� 1/11 > �` 11 // f 11 1/ /1 1M /111 /1>%� 111/ i �i� 1111 � rr ' As provided by W MWD. As provided by the San Bernardino Municipal Water Department on December 10, 2004. a Per the Western-San Bernardino Watermaster. Western Municipal Water District at al. vs. East San Bernardino County Water District at al.; Case No. 78426 Superior Court County of Riverside. mfe San Bemsrano vdby wnbbel W D'c tM1 vepewe uses W¢ Nbn Wnft Ifts m p�ryoaeaand nlsnd IM ftlf «,..YKi .JN W,,useby~.T MrdmetbnispoNdedbsii.Fve rinlumebonmay at1Nf beobbMedby wdacag Ne GS DeDedment iN mliMp (90a)38r -Yl]S mr Ca //1111 111111 INS r.. �r �r /11�1�111 m m ��IIIII� IL /IIILII N Agreement for Services 9/07 EAST VALLEY WATER DISTRICT AGREEMENT NO. FOR DESIGN PROFESSIONAL SERVICES THIS AGREEMENT is made this _ day of 200_, by and between the EAST VALLEY WATER DISTRICT, a County Water District organized and operating pursuant to California Water Code Section 30000 et seq. (hereinafter referred to as the 'DISTRICT'), and IN (hereinafter referred to as "CONSULTANT'). RECITALS WHEREAS, the DISTRICT desires to contract with CONSULTANT to provide design professional services for (hereinafter referred to as "Project'); and WHEREAS, CONSULTANT is willing to contract with the DISTRICT to provide such services; and WHEREAS, CONSULTANT holds itself as duly licensed, qualified, and capable of performing said services; and WHEREAS, this Agreement establishes the terms and conditions for the DISTRICT to retain CONSULTANT to provide the services described herein for the Project. COVENANTS NOW, 'THEREFORE, in consideration of the faithful performance of the terms and conditions set forth herein, the parties hereto agree as follows: i Agreement for Services 9/07 ARTICLE I ENGAGEMENT OF CONSULTANT AND AUTHORIZATION TO PROCEED 1.1 ENGAGEMENT: The DISTRICT hereby engages CONSULTANT, and CONSULTANT hereby accepts the engagement, to perform certain design professional services described in Section 2.1 of this Agreement for the term set forth in Section 6.7 of this Agreement. 1.2 AUTHORIZATION TO PROCEED: Authorization for CONSULTANT to proceed with all or a portion of the work described in Section 2.1 of this Agreement will be granted in writing by the DISTRICT as soon as both parties sign the Agreement and all applicable insurance and other security documents required pursuant to Section 6.3 of this Agreement are received and approved by the DISTRICT. CONSULTANT shall not proceed with said work until so authorized by the DISTRICT, and shall commence work immediately upon receipt of the Notice to Proceed. 1.3 1140 EMPLOYEE RELATIONSHIP: CONSULTANT shall perform the services provided for herein as an independent contractor, and not as an employee of the DISTRICT. The DISTRICT shall have ultimate control over the work performed for the Project. CONSULTANT is not to be considered an agent or employee of the DISTRICT for any purpose, and shall not be entitled to participate in any pension plans, insurance coverage, bonus, stock, or similar benefits that the DISTRICT provides for its employees. CONSULTANT shall indemnify the DISTRICT for any tax, retirement contribution, social security, overtime payment, or workers' compensation payment which the DISTRICT may be required to make on behalf of CONSULTANT or any employee of CONSULTANT for work performed under this Agreement. ARTICLE II SERVICES OF CONSULTANT 2.1 SCOPE OF SERVICES: The scope of design professional services to be performed by the CONSULTANT under this Agreement are described in the Scope of Work attached hereto as Exhibit "A" and incorporated herein by this reference ( "Scope of Work "), and shall, where not specifically addressed, include all related services ordinarily provided by the CONSULTANT under same or similar circumstances and /or 2 Agreement for Services 9/07 otherwise necessary to satisfy the requirements of Section 3.3 of this Agreement. In case of conflict between the terms of this Agreement and the provisions of the Scope of Work, this Agreement shall govern. 2.2 PREVAILING WAGES: In accordance with the provisions of the California Labor Code, CONSULTANT shall secure the payment of compensation to employees. To the extent required by the California Labor Code, CONSULTANT shall pay not less than the prevailing rate of per diem wages as determined by the Director, Department of Industrial Relations, State of California. Copies of such prevailing rate of per diem wages are on file at the DISTRICT's office, which copies will be made available to any interested party upon request. CONSULTANT shall post a copy of such determination at each job site. If applicable, CONSULTANT shall forfeit to the DISTRICT the amount of the penalty set forth in Labor Code Section 1777.7(b), or any subsequent amendments thereto, for each calendar day, or portion thereof, for each worker paid less than the specified prevailing rates for such work or craft in which such worker is employed, whether paid by CONSULTANT or by any subcontractor. 2.3 HOURS AND WORKING CONDITIONS: The DISTRICT is a public entity in the State of California and is subject to the provisions of the Government Code and the Labor Code of the State. It is stipulated and agreed that all provisions of law applicable to public contracts are a part of this Agreement to the same extent as though set forth herein and will be complied with by CONSULTANT. CONSULTANT shall comply with all applicable provisions of the California Labor Code relating to working hours and the employment of apprentices on public works projects. CONSULTANT shall, as a penalty to the DISTRICT, forfeit $25.00 for each worker employed in the execution of this Agreement by CONSULTANT or by any subcontractor, for each calendar day during which such worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week, unless such worker received compensation for all hours worked in excess of 8 hours at not less than 1'/1 times the basic rate of pay. 3 Agreement for Services 9/07 ARTICLE III RESPONSIBILITIES OF THE DISTRICT AND OF CONSULTANT 3.1 DUTIES OF THE DISTRICT: The DISTRICT, without cost to CONSULTANT, will provide all pertinent information necessary for CONSULTANT's performance of its obligations under this Agreement that is reasonably available to the DISTRICT unless otherwise specified in the Scope of Work, in which case the CONSULTANT is to acquire such information. The DISTRICT does not guarantee or ensure: the accuracy of any reports, information, and /or data so provided. To the extent that any reports, information, and /or other data so provided was supplied to the DISTRICT by persons who are not employees of the DISTRICT, any liability resulting from inaccuracies and /or omissions contained in said information shall be limited to liability on behalf of the party who prepared the information for the DISTRICT. 3.2 REPRESENTATIVE OF DISTRICT: The DISTRICT will designate as the person to act as the DISTRICT's representative with respect to the work to be performed under this Agreement. Such person will have complete authority to transmit instructions, receive information, and interpret and define the DISTRIC'r's policies and decisions pertinent to the work. In the event the DISTRICT wishes to make a change in the DISTRICT's representative, the DISTRICT shall notify the CONSULTANT of the change in writing. 3.3 DUTIES OF CONSULTANT: CONSULTANT shall perform the Project work in such a manner as to fully comply with all applicable professional standards of care, including professional quality, technical accuracy, timely completion, and other services furnished and /or work undertaken by CONSULTANT pursuant to this Agreement. The CONSULTANT shall cause all work and deliverables to conform to all applicable federal, state, and local laws and regulations. 3.4 APPROVAL OF WORK: The DISTRICT's approval of work or materials furnished hereunder shall not in any way relieve CONSULTANT of responsibility for the technical adequacy of its work. Neither the DISTRICT's review, approval or acceptance of, nor payment for any of the services shall be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement. Where approval by the DISTRICT is indicated in this Agreement, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all laws, codes, industry standards, and liability for 4 Agreement for Services 9/07 damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the CONSULTANT or its subcontractors. CONSULTANT's obligation to defend, indemnify, and hold harmless the DISTRICT, and its directors, officers, employees and agents as set forth in Section 6.9 of this Agreement also applies to the actions or omissions of the CONSULTANT or its subcontractors as set forth above in this paragraph. ARTICLE IV PAYMENTS TO CONSULTANT 4.1 PAYMENT: The DISTRICT will pay CONSULTANT for work performed under this Agreement, which work can be verified by the DISTRICT, on the basis of the following: CONSULTANT shall exercise its good faith best efforts to facilitate a full and clear definition of the scope of all assigned work so that the amount set forth in Section 4.3 of this Agreement will cover all tasks necessary to complete the work. The amount set forth in Section 4.3 of this Agreement is the maximum compensation to which CONSULTANT may be entitled for the performance of services to complete the work for the Project, unless the Scope of Work or time to complete the work is changed by the DISTRICT in writing in advance of the work to be performed thereunder. Adjustments in the total payment amount shall only be allowed pursuant to Section 6.4 of this Agreement. In no event shall CONSULTANT be entitled to compensation greater than the amount set forth in Section 4.3 of this Agreement where changes in the Scope of Work or the time for performance are necessitated by the negligence of CONSULTANT or any subcontractor performing work on the Project. 4.2 PAYMENT TO CONSULTANT: Payment will be made by the DISTRICT within thirty (30) calendar days after receipt of an invoice from CONSULTANT, provided that all invoices are complete and product and services are determined to be of sufficient quality by the DISTRICT. CONSULTANT shall invoice DISTRICT monthly for services performed under this Agreement. In the event that a payment dispute arises between the parties, CONSULTANT shall provide to the DISTRICT full and complete access to CONSULTANT's labor cost records and other direct cost data, and copies thereof if requested by the DISTRICT. 4.3 ESTIMATED CHARGES: The total estimated charges for all work under this Agreement are $ and such amount is the cost ceiling as 5 Agreement for Services 9/07 described herein. The total estimated charges stated herein constitute the total amount agreed to. 4.4 COST FOR REWORK: CONSULTANT shall, at no cost to the DISTRICT, prepare any necessary rework occasioned by CONSULTANT's negligent act or omission or otherwise due substantially to CONSULTANT' fault. ARTICLE V COMPLETION SCHEDULE 5.1 TASK SCHEDULE: The work is anticipated to be completed in accordance with the schedule contained in the Scope of Work. 5.2 TIME OF ESSENCE: CONSULTANT shall perform all services required by this Agreement in a prompt, timely, and professional manner in accordance with the above schedule. Time is of the essence in this Agreement. ARTICLE VI GENERAL PROVISIONS 6.1 COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAWS: CONSULTANT shall at all times observe all applicable provisions of Federal, State, and Local laws and regulations including, but not limited to, those related to Equal Opportunity Employment. 6.2 SUBCONTRACTORS AND OUTSIDE CONSULTANTS: No subcontract shall be awarded by CONSULTANT if not identified as a subcontractor in its Proposal unless prior written approval is obtained from the DISTRICT. CONSULTANT shall be responsible for payment to subcontractors used by them to perform the services under this Agreement. If CONSULTANT subcontracts any of the work to be performed, CONSULTANT shall be as fully responsible to the DISTRICT for the performance of the work, including errors and omissions of CONSULTANT's subcontractors and of the persons employed by the subcontractor, as CONSULTANT is for the acts and omissions of persons directly employed by the CONSULTANT. Nothing contained in this Agreement shall create any contractual relationship between any subcontractor of CONSULTANT and the DISTRICT. CONSULTANT shall bind every subcontractor and every subcontractor of a subcontractor to the terms of this Agreement that are 1- Agreement for services 9/07 applicable to CONSULTANT's work unless specifically noted to the contrary in the subcontract in question and approved in writing by the DISTRICT. 6.3 INSURANCE: CONSULTANT shall secure and maintain in full force and effect, until the satisfactory completion and acceptance of the Project by DISTRICT, such insurance as will protect it and the DISTRICT in such a manner and in such amounts as set forth below. The premiums for said insurance coverage shall be paid by the CONSULTANT. The failure to comply with these insurance requirements may constitute a material breach of this Agreement, at the sole discretion of the DISTRICT. (a) Certificates of Insurance: Prior to commencing services under this Agreement, and in any event no later than ten (10) calendar days after execution of this Agreement, CONSULTANT shall furnish DISTRICT with Certificates of Insurance and endorsements verifying the insurance coverage required by this Agreement is in full force and effect. The DISTRICT reserves the right to require complete and accurate copies of all insurance policies required under this Agreement. (b) Reauired Provisions: The insurance policies required by this Agreement shall include the following provisions or have them incorporated by endorsement(s): (1) Primary Coverage: The insurance policies provided by CONSULTANT shall be primary insurance and any self- insured retention and /or insurance carried by or available to the DISTRICT or its employees shall be excess and non - contributory coverage so that any self- insured retention and /or insurance carried by or available to the DISTRICT shall not contribute to any loss or expense under CONSULTANT's insurance. (2) Additional Insured: The policies of insurance provided by CONSULTANT, except Workers' Compensation and Professional Liability, shall include as additional insureds: the DISTRICT, its directors, officers, employees, and agents when acting in their capacity as such in conjunction with the performance of this Agreement. Such policies shall contain a "severability of interests" provision, also known as "Cross liability" or "separation of insured ". (3) Cancellation: Each certificate of insurance and insurance policy shall provide that the policy may not be non - renewed, canceled (for 7 Agreement for Services 9/07 reasons other than non - payment of premium) or materially changed without first giving thirty (30) days advance written notice to the DISTRICT, or ten (10) days advance written notice in the event of cancellation due to non - payment of premium. (4) Waiver of Subrogation: The insurance policies provided by CONSULTANT shall contain a waiver of subrogation against DISTRICT, its directors, officers, employees and agents for any general liability, auto liability, or workers compensation claims arising out of the services performed under this Agreement by CONSULTANT. (5) Claim Reporting: CONSULTANT shall not fail to comply with the claim reporting provisions or cause any breach of a policy condition or warranty of the insurance policies required by this Agreement that would affect the coverage afforded under the policies to the DISTRICT. (6) Deductible /Retention: If the insurance policies provided by CONSULTANT contain deductibles or self - insured retentions, any such deductible or self- insured retention shall not be applicable with respect to the coverage provided to DISTRICT under such policies. CONSULTANT shall be solely responsible for any such deductible or self- insured retention and the DISTRICT, in its sole discretion, may require CONSULTANT to secure the payment of any such deductible or self - insured retention by a surety bond or an irrevocable and unconditional letter of credit. (7) Consultant's Subcontractors: CONSULTANT shall include all subcontractors as additional insureds under the insurance policies required by this Agreement to the same extent as the DISTRICT or shall furnish separate certificates of insurance and policy endorsements for each subcontractor verifying that the insurance for each subcontractor complies with the same insurance requirements applicable to CONSULTANT under this Agreement. (c) Insurance Company Requirements: CONSULTANT shall provide insurance coverage through insurers that have at least an "A" Financial Strength Rating and a "VII" Financial Size Category in accordance with E Agreement for Services 9/07 the current ratings by the A. M. Best Company, Inc. as published in Best's Key Rating Guide or on said company's web site. In addition, any and all insurers must be admitted and authorized to conduct business in the State of California and be a partiGipaint On the Ine-WrAFlee as evidenced by a listing in the appropriate publication of the California Department of Insurance. (d) Policy Requirements: The insurance required under this Agreement shall meet or exceed the minimum requirements as set forth below: (1) Workers' Compensation: CONSULTANT shall maintain Workers' Compensation insurance as required by law in the State of California to cover CONSULTANT's obligations as imposed by federal and state law having jurisdiction over CONSULTANT's employees and Employers' Liability insurance, including disease coverage, of not less than $1,000,000. (2) General Liabilitv: CONSULTANT shall maintain Comprehensive General Liability insurance with a combined single limit of not less than $1,000,000 per occurrence or claim and $1,000,000 aggregate. The policy shall include, but not be limited to, coverage for bodily injury, property damage, personal injury, products, completed operations and blanket contractual to cover, but not be limited to, the liability assumed under the indemnification provisions of this Agreement. In the event the Comprehensive General Liability insurance policy is written on a "claims made" basis, coverage shall extend for two years after the satisfactory completion and acceptance of the Project by DISTRICT. (3) Automobile Liability: CONSULTANT shall maintain Commercial Automobile Liability insurance with a combined single limit for bodily injury and property damage of not less than $1,000,000 each occurrence for any owned, hired, or non -owned vehicles. (4) Professional Liabilitv: CONSULTANT shall maintain Professional Liability insurance covering errors and omissions arising out of the services performed by the CONSULTANT or any person employed by him, with a limit of not less than $1,000,000 per occurrence or claim and $1,000,000 aggregate. In the event the insurance policy 6 Agreement for Services 9/07 is written on a "Claims made" basis, coverage shall extend for two years after the satisfactory completion and acceptance of the Project by DISTRICT. (5) Property Coverage — Valuable Papers: Property coverage on an all -risk, replacement cost form with Valuable Papers insurance sufficient to assure the restoration of any documents, memoranda, reports, plans or other similar data, whether in hard copy or electronic form, relating to the services provided by CONSULTANT under this Agreement. 6.4 CHANGES IN SCOPE OR TIME: If the DISTRICT requests a change in the Scope of Work or time of completion by either adding to or deleting from the original scope or time of completion, an equitable adjustment shall be made and this Agreement shall be modified in writing accordingly. CONSULTANT must assert any claim for adjustment under this clause in writing within thirty (30) calendar days from the date of receipt from CONSULTANT of the notification of change unless the DISTRICT" grants a further period of time before the date of final payment under this Agreement. 6.5 NOTICES: All notices to either party by the other shall be made in writing and delivered or mailed to such party at their respective addresses as follows, or to other such address as either party may designate, and said notices shall be deemed to have been made when delivered or, if mailed, five (5) days after mailing. To DISTRICT: East Valley Water District 3654 Highland Avenue, Suite 18 To CONSULTANT: P.O. Box 3427 San Bernardino, CA 92413 Attn: General Manager Attn: 6.6 CONSULTANT'S ASSIGNED PERSONNEL: CONSULTANT designates to have immediate responsibility for the performance of the 10 Agreement for Services 9/07 work and for all matters relating to performance under this Agreement. Substitution of any assigned personnel shall require the prior written approval of the DISTRICT. If the DISTRICT determines that a proposed substitution is not acceptable, then, at the request of the DISTRICT, CONSULTANT shall substitute with a person acceptable to the DISTRICT. 6.7 TERMINATION: (a) If the engagement of CONSULTANT is not extended by the mutual written consent of the DISTRICT and CONSULTANT, then this Agreement shall expire on the latest date set forth in the schedule contained in the Scope of Work for completion of tasks for the Project. (b) Notwithstanding the above, the DISTRICT may terminate this Agreement or abandon any portion of the Project by giving ten (10) days written notice thereof to CONSULTANT. CONSULTANT may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days written notice only in the event of substantial failure by the DISTRICT to perform in accordance with the terms of this Agreement through no fault of the CONSULTANT. (c) In the event of termination of this Agreement or abandonment of any portion of the Project, the DISTRICT shall be immediately given title to all original drawings and other documents developed for the Project, and the sole right and remedy of CONSULTANT shall be to receive payment for all amounts due and not previously paid to CONSULTANT for services completed or in progress in accordance with the Agreement prior to such date of termination. If termination occurs prior to completion of any task for which payment has not been made, the fee for services performed during such task shall be based on an amount mutually agreed to by the DISTRICT and CONSULTANT. Such payments available to the CONSULTANT under this paragraph shall not include costs related to lost profit associated with the expected completion of the work or other such payments relating to the benefit of this Agreement. 6.8 ATTORNEYS' FEES: In the event that either the DISTRICT or CONSULTANT brings an action or proceeding for damages for an alleged breach of any provision of this Agreement, to interpret this Agreement or determine the rights of and duties of either party in relation thereto, the prevailing party shall be entitled to 11 Agreement for Services 9/07 recover as part of such action or proceeding all litigation, arbitration, mediation and collection expenses, including witness fees, court costs, and reasonable attorneys' fees. Such fees shall be determined by the Court in such litigation or in a separate action brought for that purpose. Mediation will be attempted if both parties mutually agree before, during, or after any such action or proceeding has begun. 6.9 INDEMNITY: (a) CONSULTANT shall defend, indemnify and hold DISTRICT, including its directors, officers, employees and agents, harmless from and against any and all claims, demands, causes of action, suits, debts, obligations, liabilities, losses, damages, costs, expenses, attorney's fees, awards, fines, settlements, judgments or losses of whatever nature, character, and description, that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT or any of CONSULTANT's subcontractors, including their respective directors, officers, employees, agents and assigns, excepting only such matters arising from the sole negligence or willful misconduct of the DISTRICT. (b) CONSULTANT shall defend, indemnify and hold DISTRICT, including its directors, officers, employees and agents, harmless from and against any and all claims, demands, causes of action, suits, debts, obligations, liabilities, losses, damages, costs, expenses, attorney's fees, awards, fines, settlements, judgments or losses of whatever nature, character, and description, with respect to or arising out of any infringement or alleged infringement of any patent, copyright or trademark and arising out of the use of any equipment or materials furnished under this Agreement by the CONSULTANT or CONSULTANT's subcontractors, including their respective directors, officers, employees, agents and assigns, or out of the processes or actions employed by, or on behalf of, the CONSULTANT or CONSULTANT's subcontractors, including their respective directors, officers, employees, agents and assigns, in connection with the performance of services under this Agreement. CONSULTANT shall have the right, in order to avoid such claims or actions, to substitute at its expense non - infringing equipment, materials or processes, or to modify at its expense such infringing equipment, materials, and processes so they become non - infringing, provided that such substituted and modified 12 Agreement for Services 9/07 equipment, materials, and processes shall meet all the requirements and be subject to all the provisions of this Agreement. (c) CONSULTANT shall defend, indemnify and hold DISTRICT, including its directors, officers, employees and agents, harmless from and against any and all claims, demands, causes of action, suits, debts, obligations, liabilities, losses, damages, costs, expenses, attorney's fees, awards, fines, settlements, judgments or losses of whatever nature, character, and description, with respect to or arising out of any breach by CONSULTANT or CONSULTANT's subcontractors, including their respective directors, officers, employees, agents and assigns, of the aforesaid obligations and covenants, and any other provision or covenant of this Agreement. (d) It is the intent of the parties to this Agreement that the defense, indemnity, and hold harmless obligation of CONSULTANT under this Agreement shall be as broad and inclusive as may be allowed under Califomia Civil Code §§ 2778 through 2784.5, or other similar state or federal law. 6.10 SAFETY: CONSULTANT shall perform the work in full compliance with applicable State and Federal safety requirements including, but not limited to, Occupational Safety and Health Administration requirements. (a) CONSULTANT shall take all precautions necessary for the safety of, and prevention of damage to, property on or adjacent to the Project site, and for the safety of, and prevention of injury to, persons, including DISTRICT's employees, CONSULTANT's employees, and third persons. All work shall be performed entirely at CONSULTANT's risk. CONSULTANT shall comply with the insurance requirements set forth in Section 6.3 of this Agreement. (b) CONSULTANT shall also furnish the DISTRICT with a copy of any injury prevention program established for the CONSULTANT's employees pursuant to Labor Code Section 6401.7, including any necessary documentation regarding implementation of the program. CONSULTANT hereby certifies that its employees have been trained in the program, and procedures are in place to train employees whenever new substances, processes, procedures, or equipment are introduced. CONSULTANT shall demonstrate compliance with Labor Code Section 6401.7 by 13 Agreement for Services 9/07 maintaining a copy of its Injury and Illness Prevention Plan at the Project site and making it available to the DISTRICT. 6.11 EXAMINATION OF RECORDS: All original drawings, specifications, reports, calculations, and other documents or electronic data developed by CONSULTANT for the Project shall be furnished to and become the property of the DISTRICT. CONSULTANT agrees that the DISTRICT will have access to and the right to examine any directly pertinent books, documents, papers, and records of any and all of the transactions relating to this Agreement. 6.12 OWNERSHIP OF SOFTWARE: (a) Subject to payment of all compensation due under this Agreement and all other terms and conditions herein, CONSULTANT hereby grants DISTRICT a nonexclusive, transferable, royalty -free license to use the Software furnished to DISTRICT by CONSULTANT under this Agreement. The license granted herein shall authorize DISTRICT to: (1) Install the Software on computer systems owned, leased or otherwise controlled by DISTRICT; (2) Utilize the Software for its internal data - processing purposes; and (3) Copy the Software and distribute as desired to exercise the rights granted herein. (b) CONSULTANT retains its entire right, title and interest in the Software developed under this Agreement. DISTRICT acknowledges that CONSULTANT owns or holds a license to use and sublicense various pre- existing development tools, routines, subroutines and other programs, data and materials that CONSULTANT may include in the Software developed under this Agreement. This material shall be referred to hereafter as "Background Technology." (c) DISTRICT agrees that CONSULTANT shall retain any and all rights CONSULTANT may have in the Background Technology. CONSULTANT grants DISTRICT an unrestricted, nonexclusive, perpetual, fully paid -up worldwide license to use the Background Technology in the Software developed and delivered to DISTRICT under this Agreement, and all updates and revisions thereto. However, DISTRICT shall make no other commercial use of the Background Technology without CONSULTANT's written consent. 14 Agreement for Services 9/07 6.13 INTEGRATION AND AMENDMENT: This Agreement contains the entire understanding between the DISTRICT and CONSULTANT as to those matters contained herein. No other representations, covenants, undertakings or other prior or contemporaneous agreements, oral or written, respecting those matters, which are not specifically incorporated herein, may be deemed in any way to exist or to bind any of the parties hereto. Each party acknowledges that it has not executed this Agreement in reliance on any promise, representation or warranty not set forth herein. This Agreement may not be amended except by a writing signed by all parties hereto. 6.14 ASSIGNMENT: Neither party shall sign or transfer its interest in this Agreement without written consent of the other party. All terms, conditions, and provisions of this Agreement shall inure to and shall bind each of the parties hereto, and each of their respective heirs, executors, administrators, successors, and assigns. 6.15 GOVERNING LAW: This Agreement shall be construed as if it was jointly prepared by both parties hereto, and any uncertainty or ambiguity contained herein shall riot be interpreted against the party drafting same. This Agreement shall be enforced and governed by the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state court situated in the County of San Bernardino, State of California, or in a federal court with in rem jurisdiction over the Project. 6.16 FIEADINGS: Article and Section headings in this Agreement are for convenience only and are not intended to be used in interpreting or construing the terms, covenants, and conditions of this Agreement. 6.17 PARTIAL INVALIDITY: If any term, covenant, condition, or provision of this Agreement is found by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect, and shall in no way be affected, impaired, or invalidated thereby. 6.18 EFFECT OF DISTRICT'S WAIVER: Any failure by the DISTRICT to enforce any provision of this Agreement, or any waiver thereof by the DISTRICT, shall not constitute a waiver of its right to enforce subsequent violations of the same or any other terms or conditions herein. 6.19 AUTHORITY: The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to sign this Agreement on behalf of and -to so bind their respective legal entities. 15 Agreement for Services 9!07 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. 0 CONSULTANT (Print Name and Title) 16 DISTRICT By: Robert E. Martin, General Manager East Valley Water District Agreement for Services 9 /07 EXHIBIT A SCOPE OF WORK 17 To: Ron Buchwald, District Engineer, EVWD From: Mark Vargas, Cordoba Corporation Date: December 3, 2008 Subject: Proposed Scope of Work for Pre - Construction Services As per our discussion earlier this week, Cordoba has prepared for your review a preliminary draft scope of work for the pre- construction phase of services to the East Valley Water District, including an attached budget and schedule for said services. We believe that invnediate tasks are as follows: • Hold an Initial Meeting with EVWD to go over the project's scope of work definition, their expectations from us and review our immediate plans to satisfy their needs. • Develop with EVWD staff a Code of Accounts to properly plan, schedule, estimate, and report progress. • Initiate the creation of a Project Manual that centralizes all important project information and becomes the "rulebook" for the project. • Request from EVWD staff the District's General Conditions, Contract Documents and/or Procurement Policies and Procedures. • Install and Configure Project Controls Software for District staff to monitor the project's progress, including a tutorial for District staff on the operation of software. • Prepare an RFQ or a vehicle to Prequalify Contractors and publish a solicitation accordingly. • Begin a Contractor Outreach effort to get as many qualified contractors interested in the project. • Conduct a Joint Meeting with the District and the Architect /Engineer to go over the status of the Design Documents. • Immediately launch a Value Engineering effort to review Design Documents and hold a one -day VE session. • hmnediately start a Constructability Review effort that will include time to resolve comments and to make drawing changes based on those comments. • Begin preparation of a Detailed Estimate in tandem with the parallel Value Engineering Constructability efforts. • In collaboration with the District and the Architect/Engineer, create a Bid Package. • Begin making arrangements for Construction Inspection, Testing and Commissioning. • Perform review of LEED Certification efforts to date, including a meeting with the LEED Professional responsible for the Basis of Design and registration of the Project with the U.S. Green Building Council, in order to ensure that all LEED points possible have been captured. • Perfoml an initial review of possible tax credits, grants or rebates from government agencies or utilities for either performance of construction within empowerment zones or energy savings by design. 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I` aE ;� n of F e sle j 2 i o g 3 8 0 3 V� � 3 a V � V �j� PRIMAVERA Primavera Systems, Inc. 3 Bala Plaza West Bala Cynwyd, PA 19004 1011f[.7 Cordoba Corporation Attn: Accounts Payable 660 Figueroa Los Angeles, CA 90017 Software Quote Ship To: Cordoba Corporation Attn: Angel Alvarez 660 Figueroa Los Angeles, CA 90017 Date 12/3/2008 No. 07- 446 -262 Terms Expires Rep Account Contact Email Address Phone Due on receipt 12/2612008 JW Angel Alvarez aalvarez @cordobacorp.com 714 -558 -6124 Oty Description Unit Price Total 2 Primavera Software - Contract Manager 12.0 - Named license 1,550.00 3.100. DOT -First vear maintenance is required with your software purchase. _ Conuact Manaeer 12.0 named: 11_ months of software maintenance, telephone technical 341.00 632 DOT support, and upgrades from Primavera I Public Training - E202 Contract Manager (Expedition 10x) 1,195.00 1.195.00 Using Expedition Professional for Project Controls - 3 days (training manual included) Training Manual(s) - Course E202: Managing Project Controls with Expedition 0.00 O.00T Freight - Shipping & Delivery Charge 45.00 45.00T Approved by:_ _ Date: Subtotal $5,022.00 Signature._ -- Sales Tax (8.25%) $315.73 Payment terms are CD D unless prior credit terms are arranged. All prices are in U.S. Dollars lb) and do not Total $5,337,73 include sales taxes or delivery charges unless specifically noted above. Warrantees, guarantees, and technical supp on are provided by the individual software vendors in accordance with the terms of their license agreements and wbiect to the registration of the software. Software maintenance entitlements are defined by the software vendors and do not include any free technical support or services provided by D R McNally 8 Associates, Inc.This Proposal is provided on behalf of Primavera Systems. Software purchase orders should be sent to DR McNatty but must reflect Primavera Systems Inc as the vendor. r u . f, �: { P i q f f tl 3 �t3 0 i m--1 ®, 2) rmtn CD 't L -J "t C O 3 =mi.. 0 aOT 7 4 a9T 79 T a9S aya s ayT� a9iT a99 a9 BO a9 sa ay s, ay d� ay sx a.9 kr a06� a9 a19 ay Oy 7y .90 70 9a a9 W, 7y a9� 9y sr 7 99C 7y 90 a 99> 7y 7y 9� X00 ? O 00 ? a OG, 00 uT X00 S ?00y. Acre -Feet � N N O O O O O O O O O O O O O O O O go rh YE O C C W CL `/ CL 0 WON a rt NUNN NMI imam ORION! NOR an MEN 0 ON ams 5�11-1.,:,� Z-1 WON a rt NUNN NMI imam ORION! NOR an MEN 0 ON ams lia 2} i t tj i� C(` �3 < I} I,3 1 6 i i i I' �tfi:4 w I I E I ro i � y I m O 0 0 owk c 4P •�.I !I z J , t` 1 0) tr OP3 z J , t` 1 0) i J 3, 3 CID V�. !W* ci D �t3 EAST VALLEY WATER DISTRICT PLANT 134 UPGRADES AND EXPANSION FINAL DESIGN PROPOSAL December 3, 2008 PURPOSE The main purpose of this project is the preparation of engineering drawings and specifications, which comprise the construction documents for the Plant 134 Upgrades and Expansion project in one construction bid package. The work also includes a site survey, a geotechnical investigation, a construction cost estimate, and design phase permitting services. PREREQUISITES FOR PERFORMANCE The main prerequisite for performance of this project is the selection of a membrane filtration system supplier (MFSS). The MFSS will provide design drawings and documentation that will be coordinated, reviewed, and incorporated into the final design package. The September 17, 2008 Plant 134 Upgrades and Expansion Preliminary Design Report (PDR) prepared by CDM provides the design criteria and PDR level design drawings for the facilities included in the final design. The final design includes the new membrane building housing the new membranes and ancillary equipment (including new inlet strainer, feedwater or permeate pumps; and CIP equipment), new coagulant storage and feed equipment as well as rapid mix process, new washwater recovery pumps, on -site chlorine generation system upgrades, finished water (booster) pump station upgrades, electrical and instrumentation system upgrades (including new standby emergency generator, and required yard piping modifications. SCOPE OF WORK Task 1- Project Admin, QA/QC, Meetings, Submittals Task1.1 Project Administration The Project Management scope of work during the 10 month Final Design period includes the time for the CDM project manager and the project management support staff to perform overall project management functions of planning, coordinating, scheduling, cost accounting, monitoring and reporting. The work includes: directing and managing CDM and subconsultant staff on the project; coordinating with'the District, the CDM project team, and outside stakeholders; preparing, monitoring, and updating; detailed work schedules; preparing work breakdown structures, subconsultant agreements & budgets, and monitoring of engineering costs; and reporting on progress. =r D. ffi Code rrnat uesign ocope or vvorx Task 1.2 Permits This Task is to provide support to the District to obtain permits to allow construction of the Plant 134 upgrades and expansion. Most of the potential effort under this task is still largely undefined until the final design is completed. Therefore, the scope provided is relatively general and the budget is based on level -of- effort estimates. 1.2.1 California Department of Public Health (CDPH) Permit - CDM will submit 90 percent level design drawings and specifications to CDPH for review, upon request, and approval by the District. CDPH comments will be incorporated into the final design submittal. CDM will attend up to 2 meetings with CDPH to review the design features of the Plant 134 upgrades and expansion, as described in Task 1.4.5. A total of 90 hours of labor are budgeted for this task and Task 1.4.5. 1.2.2 Miscellaneous Building and Local Permits - If required, CDM will submit 90 percent level design drawings and specifications to the City of Highland and other local agencie for miscellaneous building and local permits, upon request and approval by the District. A total of 50 hours of labor are budgeted for this task. 1.2.1 Environmental Documentation Suppport - CDM will provide design information to the District's EIR consultant as requested and approved by the District. A total of 50 hours of labor are budgeted for this task. Task 1.3 Quality Assurance and Quality Control (QA/QC) This task includes QAQC activities as follows: 1.3.1 60 percent design review by technical review committee (TRC) 1.3.2 90 percent design review by TRC 1.3.3 C onstructability review at 90 percent design Task 1A Project Meetings This task is for all project meetings, workshops, and site visits during the Final Design period as follows: 1.4.1 POM /Kick -off Meeting - CDM project management and team leaders (as required) will meet with the District staff to kick -off the Plant 134 upgrades and expansion final design project. 1.4.2 PLoject Team Coordination Conference Calls - CDM project management and team leaders will hold regularly scheduled conference calls to coordinate the project work. 1.4.3 Special Review Meeting with MFSS - CDM project management and the District staff will have one meeting with the MFSS to review the design of the membrane filtration system (MSF), and coordinate MSF shop drawing submittal. f . Final Design Scope of Work 1.4.4 Submittal Review Meetings (@ 60%,90%, and 100 %) -The CDM team and the District staff will meet to go over the District's comments on the 60 percent, 90 percent and 100 percent design submittals. 1.4.5 Meeting with CDPH - CDM will attend up to 2 meetings with CDPH upon request and approval by the District. Task 2 - Final Design Support Services Task 2.1 Site Survey 2.1.1 Suey -A survey of Plant 134 will be performed at the start of final design. The survey will include field topographic survey of the work area, north of the washwater lagoons, and aerial topographic survey of the entire Plant 134 site. Subconsultant Advanced Survey Concepts will perform this work. 2.1.2 Utilities Investigation - Up to two site visits will be made to verify utilities and existing conditions around the work area, It is assumed that any potholing of existing underground utilities will be performed by the District. Task 2.2 Geotechnical Study CDM will perform a limited field investigation to assess the subsurface conditions for the new facilities. The field investigations will include five test pits, and lab analyses. A letter .report will be prepared summarizing the investigations and providing geotechnical recommendations. CDM will rely on existing geotechnical report(s) at the site and this field investigation is limited in scope. This task does not include borings or analysis for piles. Task 2.3 MFSS Submittal Review 2.3.1 Respond to Requests for Clarification - CDM will respond to requests for clarification by the MFSS. CDM anticipates responding to up to three requests for clarifications. 2.1.3 Review Shop Drawing Submittals - CDM will review one consolidated shop drawing submittal on the membrane filtration system. CDM anticipates reviewing the submittal up to three times. Task 3 - Drawings, Specifications & Cost Estimate Task 3.1 Engineer's Construction Cost Estimate One detailed estimate of the probable cost of construction will be prepared at the 90 percent design level. This estimate will be the Engineer's estimate of the probable cost of construction. The estimates will be prepared by the estimators from CDM's construction division, CCI (CDM Constructors, Inc.). Final Design Scope of Work Task 3.2 Final Design Drawings Prepare the Final Design Drawings for the upgrades and expansion of Plant 134. The drawings will include: general, civil, architectural, structural, building mechanical, process mechanical, electrical, and I &C. A complete listing of the anticipated 129 drawings is attached and is the basis for the fee estimate for this Task. The structural drawings will be prepared by subconsultant Simon Wong. Modifications to the existing clarifier /filter system are not included in the final design scope. Task 3.3 Specifications The specifications will be completed for one construction bid package. The technical specifications will be prepared according to the Construction Specifications Institute (CSI) divisions and format. It is assumed that front end bidding, contractual, and general conditions portions of the specifications will be similar to the MFSS procurement document. Any revisions to the front end documents will be provided by the District. MILESTONE SCHEDULE A detailed project schedule is attached to this Scope of Work. Project milestones include: Milestone Date MFS Bid Date December 16, 2008 MFSS En&Lneering Services Agreement Award _ January 16, 2009 Pro'ec:t Start January 19, 2009 Membrane Filtration System Shop Drawings Due March 1, 2009 MFS Pilot Testing If Applicable) March 2, 2009 - July 3, 2009 60% Design Submittal May 8, 2009 90% Design Submittal July 17, 2009 100% Desi Submittal September 10, 2009 Bid Documents Submittal October 23, 2009 r i! rinai uesign ,ticope or work KEY PERSONNEL The key CDM Team personnel include: Name Project Role Richard Corneille Officer-in-Charge William O'Neil Project Manager Sava Nedic Quality Manager Greg Wetterau Lead Design Engineer Chris Ott Civil Lead Engineer Ed Galindo Architectural Lead En ' eer Simon Wong Engineering Structural Design_ George Swaidan Building Mechanical Lead Engineer Evelyn You Process Mechanical Lead Engineer Mario Manansala Electrical Engineer Mustafa Sales I &C Lead Engineer Mike Dorman Supervising Electrical and I &C En ' eer Buck Bilderback CADD Coordinator EveLyn You Lead Permitting Engineer METHOD OF COMPENSATION Time and materials using the attached Schedule of Hourly Rates for CDM and subconsultants up to the total amount authorized in the Project. DELIVERABLES The deliverables for this project include: Deliverable Number of Copies Due Date 60% Desi Drawings and Specifications 5 May 8, 2009 90% Design Drawings and Specifications ancluding Cost Estimates 5 July 17, 2009 100% )esign Drawings and Specifications 5 . September 10, 2009 Drawn -; and Specifications Bid Set 5 October 23, 2009 EXPENDITURES This project will be funded in accordance with the attached detailed cost proposal table for a total amount of $869,023 which will not be exceeded without prior written authorization from the District. r1' ATTACHMENTS • Overall Summary Fee Breakdown • CDM Schedule of Hourly Billing Rates • List of Drawings • Overall Project Schedule Final Design Scope of Work N N N N + + + + N y W IV 7C A W N i x w N x NNy N�J� NNNy D + + +p IJ tJi� CIN P41N i� iJ W NNp i + +C i PPPA4+Pj W W NO O .�7)v C) C) p g I11 3NN -193 Oea m3C) vv3vDva A <w A 3 A o001 A C C y A C A A p 0 0 , -• o'o0opo3 °A'o�eS D i 0 m'A'y =gym oA G) •3 5 °33o d w ^"�° .;0'O om= m'A Ao o00 fl• 3 mw Z �A'o� vxw 2 A ,C.p ».. —..ca s.0.� > oe °O' 03 o< VD C •mA �p'DC E+ww Ei >> 3.A $„A'9A�m oo< �A mmOa V ,yt Md P-1 ''z N Ca' `d O Om yVl .... 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SCHEDULE OF HOURLY RATES FOR EAST VALLEY WATER DISTRICT Plant 934 Final Design Categories Hourly Rate Engine( >rs /Scientists/Planners: Support Service: Grade Grade Grade ........................ ........................$100.00 .......................... .........................110.00 .......125.00 Grade4 ............................................................ ............................... .........................135.00 Grade5 ............................................................ ............................... .........................145.00 Grade6 ............................................................ ............................... .........................155.00 Grade7 ............................................................ ............................... .........................165.00 Principal.......................................................... ............................... .........................175.00 Associate......................................................... ............................... .........................190.00 VicePresident ................................................. ............................... .........................200.00 Sr. Vice President ........................................... ............................... .........................210.00 DesignerDrafter 1 .......................................... ............................... ..........................60.00 DesignerDrafter 2 .......................................... ............................... ..........................70.00 DesignerDrafter 3 .......................................... ............................... ..........................80.00 DesignerDrafter 4 .......................................... ............................... ..........................90.00 DesignerDrafter 5 .......................................... ............................... ..........................95.00 DesignerDrafter 6 ......................................... ............................... .........................105.00 DesignerDrafter 7 ......................................... ............................... .........................115.00 DesignerDrafter 8 ......................................... ............................... .........................130.00 AdministrativeManager ............................... ............................... ..........................95.00 Administrative Assistant /Word Processor . ............................... ..........................75.00 OfficeClerk ...................................................... ............................... ..........................55.00 FinancialManager ......................................... ............................... .........................110.00 Contract Administrator ............................ . .............................................................. 95.00 FinanceAssistant ............................................ ............................... ..........................55.00 Miscellaneous Expenses: AutoMileage ........................................................ ............................... Current IRS Rate Computer Time - PC ................................ ............................... ......................4.00 /Hour Computer Time - AutoCAD ................... ............................... .....................12.00 /Hour Reproduction Services Black and White Copies ...................... .................................................... $0.10/Page ColorCopies .................. ........................................................................... $1.00/Page OutsideServices ......................................................................... ............................... Cost Materials and Other Expenses ..................................... ............................... Cost + 10% c: \Documents and Settinga \corneiller \Hy Docnnenta \EM \Plant 134 \Final Design \EWD RATES 2008 rev l.doc 110 Geozone EVWO PLANT 134 UPGRADES AND EXPANSION DRAWING LIST FOR FINAL DESIGN SHEET NO. DRAWING NO. DRAWING TITLE GENERA[; 1 _ G1 COVER SHEET 2 G2 DRAWING INDEX 2 _ G3 GENERAL ABBREVIATIONS AND LEGEND 3 G4 � PROCESS DESIGN CRITERIA 3 =5-- PROCESS FLOW DIAGRAM 4 _ G6 _ HYDRAULIC PROFILE C,wL 5 C1 CIVIL NOTES LEGEND AND ABBREVIATIONS 6 C2 GENERAL SITE PLAN 7 C3 _ SITE DEMOLITION PLAN _ _ GRADING AND DRAINAGE - SOUTH 9 C5 GRADING AND DRAINAGE - NORTH 10 C6 YARD PIPING -SOUTH II C7 YARD PIPING - NORTH 12 C8 _ PIPING PROFILE 1 13 C9 PIPING PROFILE 2 _ 14 _ C70 CIVIL DETAILS 1 _ 15 Cif CIVIL DETAILS 16 C12 CIVIL DETAILS STRUCTURAL 17 _ S7 STRUCTURAL GENERAL NOTES LEGEND d ABBREVIATIONS 18 S2 MEMBRANE BUILDING CIP AREA CIP CHEMICAL STORAGE AREA FOUNDATION PLAN 19 S3 MEMBRANE BUILDING ROOF FRAMING PLAN 20 S4 _ MEMBRANE BUILDING SECTIONS 1 _ 21 S5 MEMBRANE BUILDING SECTIONS 2 22 _ S6 TANKS FOR SUBMERED MEMBRANE SYSTEM (OPTIONAL)_ 23 S7 EQUIPMENT SUPPORT /DETAILS 24 $8 _ MISCELLANEOUS DETAILS: TRENCH /FOUNDATION _ 25 89 _ MISCELLANEOUS DETAILS 26 Sl0 FRAME ELEVATIONS FOR CIP /NEUTRALIZATION AND CHEMICAL STORAGE AREA 27 S71 _ MISCELLANEOUS DETAILS FOR ROOF FRAMINIG AT CIP /NEUTRALIZATION AND CHEMICAL STORAGE AREAS 28 S12 _ MISC DETAILS FOR CHEMICAL CONTAINMENT _ 29 S13 RETAINING WALL SECTION AND FOUNDATION AT GENERATOR _ 30 _ S14 RETAINING WALL SECTION AND FOUNDATION AT SOUTHWEST OF MEMBRANE BUILDING 35 _ S15 TYPICAL DETAILS 1 32 Sib TYPICAL DETAILS ARCHITECTURAL 33 Al _ ARCHITECTURAL CODE SUMMARY /NOTES/LEGEND /ABBREVIATIONS 34 A2 FILTER PUMP BUILDING FLOOR PLAN AND ROOF PLAN 35 _ AS FILTER PUMP BUILDING SECTIONS AND ELEVATIONS 30 A4 CONTROUCHEMICAL BUILDING FLOOR PLAN AND ROOF PLAN _ 37 A5 CONTROUCHEMICAL BUILDING SECTIONS AND ELEVATIONS _ 36 _ A6 ENLARGED PLANS SECTION DETAILS _ 39 A7 SCHEDULES DOOR AND LOWER DETAILS 40 AS ROOF DETAILS/MISCELLANEOUS DETAILS MECHANICAL _ 41 — _ M1 MECHANICAL LEGEND 43 M2 PLANT INFLUENT SYSTEM MODIFICATIONS - PLAN _ 43 M3 PLANT INFLUENT SYSTEM MODIFICATIONS - SECTIONS _ 44 M4 _ MEMBRANE SYSTEMS - PLAN 45 MS _ MEMBRANE SYSTEMS- SECTIONS 46 MB _ MEMBRANE SYSTEMS- SECTIONS 47 M7 MEMBRANE SYSTEMS- SECTIONS 40 M8 MEMBRANE CIP /NEUTRALIZATION SYSTEM - PLAN _ 49 M8 MEMBRANE CIP /NEUTRALIZATION SYSTEM - SECTIONS _ 53 MID _ CIF/NEUTRALIZATION CHEMICAL STORAGE AND FEED SYSTEM -PLAN 51� Mll CIP/NEUTRALIZATION CHEMICAL STORAGE AND FEED SYSTEM - SECTIONS 52 M12 CHLORINE SYSTEM MODIFICATIONS -PLAN 53 M13 _ CHLORINE SYSTEM MODIFICATIONS- SECTIONS 54 M14 _ CHEMICAL FEED SYSTEM MODIFICATIONS -PLAN _ 55� MI5 CHEMICAL FEED SYSTEM MODIFICATIONS - SECTIONS 58 M16 CHEMICAL STORAGE SYSTEM MODIFICATIONS -PLAN 57 _ M17 CHEMICAL STORAGE SYSTEM MODIFICATIONS- SECTIONS 56 _ M18 PUMP STATION MODIFICATIONS -PLAN 59 719-- PUMP STATION MODIFICATIONS- SECTIONS _ 60 M20 RECYCLE PUMP STATION MODIFICATIONS - PLAN AND SECTIONS _ 61 M21 RECYCLE PONDS INFLUENT AND DECANT SYSTEM MODIFICATIONS- DETAILS 68 _ M22 MECHANICAL DETAILS 1 63 M23 _ MECHANICAL DETAILS 2 67 M24 MECHANICAL DETAILS 3 66 M25 MECHANICAL DETAILS HVAC _ 66 H1 _ HVAC LEGEND AND ABBREVIATIONS _ 6/ H2 HVAC FLOW AND CONTROL DIAGRAMS ill _ H3 IMEME RANE BUILDING - HVAC PLAN EVWD PLANT 194 UPGRADES AND EXPANSION OXAWING L131 rv. SHEETNO. nNn� �wnsn DRAWING NO. DRAWING TITLE 69 H4 CIP /NEUTALAZ I ION AREA-HVACPLAN _ 7 0 H5 CIP/NEUTALAZATION CHEMICAL STORAGE AREA - HVAC PLAN _ 71 HB HVAC SCHEDULES 8 DETAILS PLUMBING _ 72 Pt UNDERFLOOR PLUMBING PLAN _ 73 _ P2 MEMBRANE BLDG. CIP /NEUTR. B CHEM STORAGE PLUMBING PLAN 74 P3 PLUMBING LEGEND SCHEDULES AND DETAILS FIRE PROTECTION _ 75 _ FPt FIRE PROTECTION PLAN _ ELECTRICAL 76 Et Electrical I. ends and Abbreviations 77 E2 Electrical Site Plan 70 E3 One Line Die rem _ 79 E4 Motor Control Centers _ 80 E5 Treatment Plant Sld - Power and Control Plan _ 81 E6 Control Bld - Power and Control Plan 82 E7 Treatment Plant Bid. LI hen end Rece tacle Plan _ 82 ES Control Bltl - L htin and Rece tacle Plan 94 E9 Electrical Room Plan _ 85 E10 Generator Room Plan 86 Ell Ground' Plan _ g7 E12 Schematic Dia rams 1 _ 88 E73 Schematic Dia mms2 89 E14 Main Control Panel 90 _ Et 5 Panalboard antl L htin Schedules _ 91_ E16 Cable end Conduit Schedule 1 82 _ E17 Cade end ConduR Schedule 2 93 E18 Miscellaneous Electrical Details 1 9= E19 Miscellaneous Electrical Details 2 /8C _ 95 I.1 18C LEGENC 1 OF 2 _ 85 _ 1.2 18C LEGENC 2 OF 2 97 43 SCADA/PLC NETWORK 99 li SYSTEM OVERVIEW 98 1 -5 PLANT INFLUENT SYSTEM- MODIFICATIONS _ 100 16 EXISTING TREATMENT SYSTEM •MODIFICATIONS 101 _ 1 -7 EXISTING STORAGE AND DISTRIBUTION PUMPING SYSTEM - MODIFICATIONS 1 OF 2 102 1.8 EXISTING STORAGE AND DISTRIBUTION PUMPING SYSTEM- MODIFICATIONS20F2 _ 103 1.9 EXISTING WASHWATER RECYCLE SYSTEM- MODIFICATIONS _ 104 1.10 MEMBRANE PRE•FILTERS 105 1 -11 MEMBRANE FILTRATION -TRAIN i 103 1 -12 MEMBRANE FILTRATION- TRAIN2 _ 107 _ 1.13 MEMBRANE FILTRATION- TRAIN3 _ 108 t -14 MEMBRANE FILTRATION- TRAIN4 _ 109 1-15 MEMBRANE FILTRATION- TRAIN5 110 1.16 MEMBRANE PERMEATE PUMP #1 111 1 -17 MEMBRANE PERMEATE PUMP #2 _ 112 tAR MEMBRANE PERMEATE PUMP#3 113 1.19 MEMBRANE PERMEATE PUMP#4 114 1.20 MEMBRANE PERMEATE PUMP #5 115 1.21 MEMBRANE BACKWASH PUMPS 116 I -22 MEMBRANE BLOWERS _ 117 1.23 AIR COMPRESSORS 118 1 -24 CIP SYSTEM 119 1 -25 NEUTRALIZATION SYSTEM _ 120 1.26 CHLORINE GENERATOR YSTEM-MODIFICATIONS 121 1.27 PRE - OXIDANT FEED SYSTEMS •MODIFICATIONS _ 1.^.2 1.28 COAGULANT FEED SYSTEMS- MODIFICATIONS 123 1.29 CAUSTIC SODA FEED SYSTEMS- MODIFICATIONS 124 1.30 ORTHOPHOSPHATE FEED SYSTEM- MODIFICATIONS _ 125 1.31 CHLORINE FEED SYSTEM- MODIFICATIONS —125 1.32 CIP ACID FEED SYSTEM -NEW 127 _ 1.33 CIP CAUSTIC SODA FEED SYSTEM - NEW 12e 1.34 CIP SODIUM HYPOCHLORITE FEED SYSTEM - NEW CIP SODIUM BISULFITE FEED SYSTEM - NEW v R ary UWi N> W N' r+ b: b 0 J P N. A uAi N - O N W V� W U� J' °Ni N.' P fNi� N N' O m .n > W N • p m J m f m r30 W, Ell LO n� c 8 0 0 0 8 5 5 5 0. a e a° a o a a ' v 0 `v d' y' n 2 umi y � �. �. _ � y S°�. 3. W v v ' vr D - o _3 Oo'r N m N 6 6 6 0 n 30 . u v O r •t`F •iu n w S a u •Su u J u u u u ti N i •iu t"F •tA "iF uDi •iu or •iu a N H r •S YDi u a u N N x `G `G u > > > i T .°> > ® _ � - -• o � S � a S °a $ ° '° ° ' a a a a a a a a � - - ; � N a° o S S S � ,'�� e e � � ' � � - .S �??x i 'a a N S �• N a° S a °a °a il °a a° ° 'e a a IS a" e S S °a a a s S N°- o- Ty a (J 1p i' W Ui O N N {• A �• m W nAi + P N 0 W N+ W 41 W � N° °Ni 4 A >+ N N p b W .� + W T N m W r� )� y � v m m # Fa U ie N 3 D N 0 y. Z O 3 n 3. D y Z U 3 b b COMMISSIONERS PAUL. BIANE Boarl of Supervisors BOB COLVEN, Chair Special District KIMBERLY COX Special District DEN141S HANSBERGER, Vice Chair Board of Supervisors LARFY McCALLON City Member LOCAL AGENCY FORMATION COMMISSION 215 North "D "Street, Suite 204 • San Bernardino, CA 92415 -0490 (909) 383 -9900 • Fax (909) 383 -9901 E -mail: lafco @lafco.sbcounty.gov • www.sbciafco.org Established by the State of Callfornia to serve the Citizens, Cities, Special Districts and the County of San Bernardino December 8, 2008 200 TO: Presidents of the Boards of Directors of the Independent" 1 t' G.GI „gL` "L Special Districts in San Bernardino County SUBJECT: Special Districts Selection Committee Notice is hereby given that a vacancy exists for the Special Districts' voting member on the Local Agency Formation Commission ( LAFCO). The position was held by Robert Colven, Big Bear City Community Services District, who was unsuccessful in his reelection bid and left office on December 4, 2008. MARIWUAIMI CitylAember This letter will officially open the nomination period for the position of Regular RICHARD P. PEARSON Special District member on LAFCO. The nomination period for this position Public Member will be 30 days, opening on Wednesday, December 10, 2008, and ending at the close of business (5:00 p.m.) on Friday, January 9, 2008. ALTERNATES JIM BAGLEY Pursuant to the vote of the Special Districts Selection Committee in May Publi_Member 2008, the position selection process shall be conducted by mail. Nominations JAMESV. CURATALO for the position will need to be made by District Board vote. Enclosed with Special District this letter is a sample nomination form which includes space for the date of BRAD MITZELFELT Itoarci of Supervisors the action and District Board vote and requires the submission of a letter of ANGELA M. SCHELL interest or resume of the nominated candidate. Nominations submitted DIANE WILLIAMS City Alember without a date or Board action will be returned to the District and will need to REBECCA LOW ERY be re- submitted within the nomination period in order to be considered valid. STAFF If only a single candidate is nominated for the position, pursuant to the provisions of Government Code Section 56332(c)(1), that candidate shall be ICATH_EEN ROLUNGS- McDONALD quorum. Executive Officer deemed selected with no further vote required. SAMUEL MARTINEZ Senior LAFCO Analyst At the end of the nomination period, LAFCO staff will prepare and send, by MICHAEL TUERPE certified mail, to each independent special district a ballot with the candidates LAFCO Analyse nominated, the resume or letter of interest of the candidate and the voting ANNO, M. RAEF Clerk to the Commission instructions. ANGELA M. SCHELL Depu'yClerk to the Commission Please note the following important points related to the selection process: REBECCA LOW ERY Depuly Clerk to the Commission 1. There are currently 51 independent special districts in San Bernardino County; representatives from 26 districts will need to vote to establish a LEGAL COUNSEL quorum. CLARK H. ALSOP 2. The individual selected will serve the remainder of Commissioner Colven's term, which expires in May 2010. Special Districts Selection Committee Nomination Letter December 8, 2008 Page 2 3. A long- standing policy of the Selection Committee is to encourage balanced geographic representation with valley, desert and mountain districts seated on the Commission as voting or alternate members. The position under consideration is now represented by the mountain area. A copy of the Policy Statement is attached for your information. Please let me know if you have any questions concerning this selection process. Sincerely, KILEEN ROLLINGS- McDONALD Executive Officer KRM /amr Enclosures: 1. Nomination Forrr 2. Policy Statement NOMINATION FOR REGULAR SPECIAL DISTRICT MEMBER MEMBER OF THE LOCAL AGENCY FORMATION COMMISSION The (Name of District) hereby nominates the following person for the position on the Local Agency Formation Commission REGULAR MEMBER (Name of Nominee) I, _ , do hereby certify that at its regularly (Name of President or Designee of District) scheduled meeting of , the Board of Directors voted to nominate the above - identified candidate for the Regular Special District Member of the Local Agency Formation Commission of San Bernardino County, by the following vote: AYES: NOES: ABSENT: ABSTAIN: District President/Authorized Board Member Dated: Attached — Letter of Interest or Resume of Nominee VA U POLICY STATEMENT ADOPTED BY INDEPENDENT SPECIAL DISTRICTS AND LAFCO REGARDING LAFCO INDEPENDENT SPECIAL DISTRICT REPRESENTATION SPECIAL DISTRICT REPRESENTATION. (Amendment adopted by Commission April 17, 2002) Pursuant to the Cortese - Knox - Hertzberg Local Government Reorganization Act of 2000, independent special districts shall have two representatives plus one alternate on LAFCO. METHOD OF SELECTION. (Amendment adopted by Commission April 17, 2002) An Independent Special presiding offic located wholl y territory within taxable prope independent special district representatives and alternate. Selection Committee shall be entitled to one vote for each district for which they are p Committee Districts Selection Committee shall be composed of the ers of the legislative body of within the County of San said County representing 50°/ rty of each district. The Sele each independent special district Bernardino and those containing 0 or more of the assessed value of Hertzberg Section 56000 residing officer. shall be in accordance with the provisions Local Government Reorganization Act of 20 :tee shall appoint all Each member of the independent special The meetings of the Selection of the Cortese -Knox- 00, Government Code et seq. TERM OF OFFICE. (Amendment adopted by Commission April 17, 2002) Other than the initial special districts representatives, the terms of office shall be for four years and until the appointment and qualification of a successor. Every officer whose term has expired shall continue to discharge his duties until his successor has qualified. SPECIAL- DISTRICT REPRESENTATIVES. (Amendment adopted by Commission April 17, 2002) It shall be the policy of LAFCO that special district representatives and alternate should represent districts located in the San Bernardino Valley area, the desert area, and the mountain area. Inasmuch as possible, they should not represent agencies that provide like service, (i.e., they should represent fire protection service, water service, sewer service, cemetery service, etc.). They shall be chosen as provided by the provisions within Government Code Section 56000 et seq. 5. SPECIAL DISTRICTS ASSOCIATION. The association offers its services to work with the districts and LAFCO to provide assistance and coordination and to act as a forum to air and discuss problems of special districts and to make recommendations to LAFCO and the Selection Committee. 6. ALTERNATIVE FUNDING FORMULA (Adopted by Special District Vote July 2002) Pursuant to authority provided by Government Code Section 56381, the Independent Special Districts, by majority vote, have determined an Alternative Funding Formula for their mandatory contributions to the Local Agency Formation Commission outlined as follows: 1. Each of the three Healthcare Districts in San Bernardino County (also known as "Hospital Districts ") shall each contribute $500 to the Independent Special District's share of the LAFCO net operating cost, regardless of the amount of their current total revenues; 2. All Independent Special Districts with total revenues in excess of $50,000,000, as reported in the most currently available State Controller's Report on the "Financial Transactions Concerning Special Districts ", shall each contribute $20,000 to the Independent Special District's share of the LAFCO net operating cost; and, 3. All Independent Special Districts with total revenues less than $50,000,000 shall each contribute an amount not to exceed $10,000 to the Independent Special District's share of the LAFCO net operating cost. The amount to be contributed is determined by the ratio of each District's Total Revenues as compared to the Total Revenues for all districts in this category whose share does not exceed $10,000. 7. CONVERSION TO ALL MAIL BALLOTING FOR SPECIAL DISTRICT SELECTION COMMITTEE BUSINESS (Adopted by Special District Vote April 2008) The business of the Special District Selection Committee shall be routinely conducted by mail. The procedures for such processing are outlined in Government Code Section 56332(c)(1). 7 East Valley Water District Balance Sheet - Unaudited November 30, 2008 ASSETS UTILITY PILANT - at cost: Utility Plant in Service - water department $108,205,650 Utility Plant in Service - sewer department 26,136,952 Allowance for Uncollectibles 134,342,602 Less: Accumulated Depreciation 42,620 787) Inventory 91,721,815 Construction in Progress 21,038,911 112,760,726 RE :STRICTED ASSETS: Emergency Reserve 2,192,925 COP Debt Service Funds - Trust Accts 1,507,177 Construction Funds 2,255,3 <.t7 5,955,499 CURRENT ASSETS: Cash and Investments 12,135,572 Less: Restricted Cash and Investments 5,955,499 6,180,073 Accounts Receivable (net of allowance) 1,617,270 Other Receivables (net of allowance) 647,526 Allowance for Uncollectibles (3,229) Grants Receivable 19,102 Inventory 1,074,165 Prepaid Expenses 298,271 9,833,178 07HER ASSETS AND DEFERRED COSTS (Net of Amortization): Bond discount and incidental bond expenses 5,185 Deferred financing charges 198,759 203,944 TOTAL. ASSETS 128,753,347 East Valley Water District Balance Sheet - Unaudited November 30, 2008 LIABILITIES AND EQUITY LONG -TERM DEBT: Certificates of Participation due after one year $7,013,642 Installment Payment Obligations 14,172,200 DWR Loan 152,147 Less: Deferred amount on refunding of COPs (300,290) 21,037,699 CURRENT LIABILITIES: Accounts Payable 3,332,305 Accrued payroll and benefits 717,133 Customer service deposits 1,622,265 Accrued interest payable 6,4715 Deposits - refundable 124,850 Certificates of Participation due within one year 1,630,034 77,433,062 TOTAL LIABILITIES 28,470,761 EQUITY: Contributed Capital: Invested in Utility Plant 37,751,146 Other Contributed Capital 3,695,064 Retained Earnings: Reserved for water bond funds 6,475 Reserved for emergencies 2,170,000 Reserved for Unemployment Insurance 16,450 Unreserved 53,268,033 Net Income for current year 3,375,418 TOTAL EQUITY 100,282,586 TOTAL. 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C 0 c J2M0 Qaa mOd a W U F m a r C7 p m 0 0 c d m v a 3 n m °m w `o d n c f' 4 UUst:er Rosoureas Institute Bob Martin General Manager East Valley Water District 3654 E. Highland Ave., Suite 18 San Bernardino, CA 92346 November 14, 2008 Dear Mr. n, i i On behalf of the Advisory Board for the Water Resour -es Institute (WRT) at California State University San Bernardino, I am honored to invite East Valley Water District to join the WRI in sponsoring a series of water conservation questions for the 12th Annual Inland Empire Annual Survey. The Annual Survey is scheduled to be conducted in January 2009 as a telephone survey of 1,000 Riverside County residents and 1,000 San Bernardino County residents. The Institute of Applied Research and Policy Analysis (IAR), a full- service consulting and applied research organization (see http:; iiar.c usb.edu /) led by two members of the Cal State faculty, Dr. Shel Backman, Ph.D. and Dr. Barbara Sirotnik, Ph.D. The IAR h s been conducting this survey for eleven ve ^rs providing an opportunity for the university to track a series of important quality -of -life issues over time. These questions will be followed by specific questions posed by public and private entities sponsor to cover costs. By joining 'he WRI and one another, public water agencies in the Inland Empire will not only save limited resources but also benefit from asking the same questions to people we serve throughout the region regarding water conservation attitudes and behaviors. Furthermore, the WRI will son survey results for residents in the service area of each water agency that participates. One choice includes: • Platinum Sponsorship (520,000) for 15 questions on the survey • Gold Sponsorship (515,000) for questions on the survey • Silver Sponsorship ($10,000) for 7 questions on the survey • Bronze sponsorship (55.000) for 3 oue "ions -- -'h° enrvey) Time is limited so 1 will oe contacting each one of yot. ;ndividually ever the next two weeks to foster this partnership. Better yet, respond directly to me at slongv_il(at)esusb.edu or at the number listed below. Participating agencies will meet in December to draft our survey questions. I look forward to hearing from you. Sincerely, Susan Lier Lonlawlle Director* a; Water Resourceu. Institute California State Universitv San Bernardino 5500 University Park\ ay San Bernardino CA 92407-2397 909.537.7654 From: Sent: Wednesday, December 17, 2008 4:49 PM To: Subject: FW: CMUA events - save the dates! Mark your calendar for these CMUA events! Capitol Day Monday, January 26, 2009 - Hyatt Regency Sacramento Board of Governors' Meeting - Tuesday, January 27, 2009 - Hyatt Regency Sacramento APPA_Le£rislative Rally L &R Review Breakfast - Tuesday, February 24, 2009 - Mayflower Hotel, Washington DC Congressional Reception - Wednesday, February 25, 2009 - location to be determined 771h Annual Conference Tuesday thru Friday, March 24 -27, 2009 - Rancho Las Palmas Resort & Spa, Rancho Mirage Emails with additional information for each of these events will be sent soon. For additional information now, please contact me. Thanks! Debbie Armstrong CMUA 9'15 L Street, Suite 1460 Sacramento CA 95814 916/326 -5800 9 ".16/326 -5810 fax www.cmua.org 12/17/2008 EAST VALLEY WATER DISTRICT SINGLE AUDIT REPORT ON FEDERAL AWARDS YEAR ENDED JUNE 30, 2008 EAST VALLEY WATER DISTRICT SINGLE AUDIT REPORT YEAR ENDED JUNE 30, 2008 Table of Contents Page Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 1 - 2 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance and on the Schedule of Expenditures of Federal Awards in Accordance with OMB Circular A-133 3 - 5 Schedule of Expenditures of Federal Awards 6 Notes to Schedule of Expenditures of Federal Awards 7 Schedule of Findings and Questioned Costs 8 - 10 Summary Schedule of Prior Audit Findings 11 -6- EAST VALLEY WATER DISTRICT Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2008 Federal Grantor/Pass-through Grantor Federal CFDA Number Pass-through Entity Identifying Number Grant I.D. # Federal Expenditures US Department of Homeland Security Pass-through from the State of California Hazard Mitigation Grant Program (HMGP) 97.039 1498-32-30 FEMA-1498-DR-CA $ 1,826,543 -7- EAST VALLEY WATER DISTRICT Notes to Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2008 Note 1: Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards (a) Scope of Presentation The accompanying schedule presents only the expenditures incurred by the East Valley Water District that are reimbursable under federal programs of federal awards. For the purposes of this schedule, federal awards include both federal awards received directly from a federal agency, as well as federal funds received indirectly by the District from a non-federal agency or other organization. Only the portion of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule. (b) Basis of Accounting The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are incurred when the District becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported include any property or equipment acquisitions incurred under the federal program. -8- EAST VALLEY WATER DISTRICT Schedule of Findings and Questioned Costs Year Ended June 30, 2008 A. SUMMARY OF AUDIT RESULTS Financial Statements Type of auditor's report issued: Unqualified Internal control over financial reporting: • Material weakness identified? yes X no • Significant deficiencies identified that are not considered to be material weaknesses? yes X none reported Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major programs: • Material weaknesses identified? yes X no • Significant deficiencies identified that are not considered to be material weaknesses? yes X none reported Type of auditor's report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? X yes no -9- EAST VALLEY WATER DISTRICT Schedule of Findings and Questioned Costs Year Ended June 30, 2008 A. SUMMARY OF AUDIT RESULTS (continued) Identification of major programs: CFDA Number Name of Federal Program 97.039 Hazard Mitigation Grant Program (HMGP) Dollar threshold used to distinguish between type A and type B programs: $ 300,000 Auditee qualified as low-risk auditee? yes X no B. FINDINGS - FINANCIAL STATEMENT AUDIT NONE C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT U.S. DEPARTMENT OF HOMELAND SECURITY Hazard Mitigation Grant Program (HMGP) - CFDA No. 97.039 2008-1 Grant No. FEMA-1498-DR-CA - Year ended June 30, 2008 Condition: The construction job related to the Hazard Mitigation Grant has approved contracts for two different contractors to date. Neither contractor appears to be on the federal “Excluded Parties List.” However, the District currently has no procedure in place to either review the Federal list for debarment or suspension or to have the contractor certify that they are not on the list. Therefore, no procedure took place to ensure compliance. -10- EAST VALLEY WATER DISTRICT Schedule of Findings and Questioned Costs Year Ended June 30, 2008 C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT (continued) Criteria: OMB Circular A-102 states that “subgrantees (including contractors) at any tier do not make awards in violation of the nonprocurement debarment and suspension common rule.” Effect: The lack of procedures to verify that the contractors have not been debarred or suspended has had no effect since the contractors used are not on the federal list of excluded parties. (EPLS - Excluded Parties List System) Cause: The East Valley Water District has no procedure established to verify that contractors have not been placed on the Excluded Parties List System (EPLS). Population and Items Tested: As of the end of the current fiscal year June 30, 2008, there have been two contracts awarded for construction. Both contracts were reviewed for a clause relating to debarment and suspension. Neither contract contained such a clause. Additionally, no certification was made by the contractor regarding debarment and suspension. Inquiries were made to see if the District or their consulting outside engineer researched the federal EPLS. Apparently, no one looked on the EPLS. The two construction contracts are for $1,939,911 and $348,369 for a combined total of $2,288,280. None of the costs related to the contracts are in question. Auditor’s Recommendation: We recommend that the District establish a procedure to search the federal government’s Excluded Parties List System for any potential contractor prior to the awarding of the contract when federal monies are involved. Grantee Response: The District plans to adopt our recommendation. -11- EAST VALLEY WATER DISTRICT Summary Schedule of Prior Audit Findings Year Ended June 30, 2008 CURRENT STATUS OF PRIOR YEAR FINDINGS: There were no prior year findings. EAST VALLEY WATER DISTRICT REPORT ON AUDIT JUNE 30, 2008 AND 2007 Page 1 of 2 EAST VALLEY WATER DISTRICT TABLE OF CONTENTS INDEX Exhibit/ Schedule Page History and Organization 1 - 2 Independent Auditor’s Report 3 - 4 Management’s Discussion and Analysis 5 - 12 Statements of Net Assets at June 30, 2008 and 2007 A 14 – 15 Statements of Revenues, Expenses and Changes in Net Assets for the years ended June 30, 2008 and 2007 B 16 – 17 Statements of Cash Flows for the years ended June 30, 2008 and 2007 C 18 – 19 Notes to Financial Statements 21 – 42 Auditor’s Report on Supplementary Information 43 Statements of Revenues, Expenses and Changes in Net Assets - Water Department 1 45 – 47 Statements of Revenues, Expenses and Changes in Net Assets - Sewer Department 2 48 – 49 Capital Assets 3 50 – 53 Page 2 of 2 EAST VALLEY WATER DISTRICT TABLE OF CONTENTS INDEX Exhibit/ Schedule Page Capital Assets Increases and Decreases 4 54 – 60 Unredeemed Bond Coupons - Retired Debt 5 61 Principal and Interest Repayment Schedule - Certificates of Participation - Series 2001 6 62 Principal and Interest Repayment Schedule - Certificates of Participation - Series 1996 7 63 Principal and Interest Repayment Schedule - 2004 Project Installment Sale Note 8 64 Principal and Interest Repayment Schedule - Department of Water Resources Construction Loan 9 65 Principal and Interest Repayment Schedule - 2006 Project Installment Sale Note 10 66 Statement of Net Assets Comments 67 – 73 Water Operations 74 – 75 Sewer Operations 76 – 77 -1- EAST VALLEY WATER DISTRICT HISTORY AND ORGANIZATION JUNE 30, 2008 AND 2007 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 BUSINESS 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 PUBLIC FACILITIES CORPORATION Donald Goodin President Kip E. Sturgeon President George E. “Skip” Wilson Vice President Vacant 1st Vice President Kip E. Sturgeon Matt Le Vesque 2nd Vice President Matt Le Vesque Robert E. Martin Secretary James Morales, Jr. Brian W. Tompkins Treasurer -2- EAST VALLEY WATER DISTRICT HISTORY AND ORGANIZATION JUNE 30, 2008 AND 2007 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. -13- THIS PAGE LEFT INTENTIONALLY BLANK The accompanying notes are an integral part of these financial statements. -14- EAST VALLEY WATER DISTRICT STATEMENTS OF NET ASSETS JUNE 30, 2008 AND 2007 2008 2007 ASSETS Current Assets: Cash in bank and on hand $ 579,294 $ 1,223,497 Investment in Local Agency Investment Fund 1,359,534 3,378,575 Investment in debt securities 4,713,445 4,165,499 Accounts receivable, net 1,532,029 1,546,505 Interest receivable 88,573 174,427 Other receivables 829,485 135,957 Inventory 1,020,709 1,000,211 Prepaid expenses 190,829 114,446 Total Current Assets 10,313,898 11,739,117 Restricted Assets: Cash 4,238,124 11,162,637 Investments 1,498,435 1,398,172 Total Restricted Assets 5,736,559 12,560,809 Noncurrent Assets: Capital Assets: Utility plant in service 129,342,141 123,337,281 Less accumulated depreciation (42,620,787) (39,741,878) 86,721,354 83,595,403 Capital assets, not being depreciated/amortized 22,616,351 12,875,459 109,337,705 96,470,862 Assessments receivable 128,282 149,636 Deferred charges 214,573 252,529 Total Noncurrent Assets 109,680,560 96,873,027 Total Assets $125,731,017 $121,172,953 The accompanying notes are an integral part of these financial statements. -15- Exhibit “A” 2008 2007 LIABILITIES Current Liabilities: Accounts payable - trade $ 2,331,264 $ 1,839,260 Accounts payable - other 637,682 228 Retentions payable 81,884 - Accrued payroll and benefits 878,808 696,387 Accrued interest payable 264,795 277,990 Long term debt due within one year 1,871,819 1,781,156 Total Current Liabilities 6,066,252 4,595,021 Liabilities Payable From Restricted Assets: Customer service deposits 1,611,821 1,592,069 Construction deposits 111,500 308,766 1,723,321 1,900,835 Noncurrent Liabilities: Long term debt due after one year 21,366,431 23,241,630 Less: Deferred amount on refunding of Certificates of Participation (332,156) (408,635) Total Noncurrent Liabilities 21,034,275 22,832,995 Total Liabilities 28,823,848 29,328,851 NET ASSETS Invested in capital assets 89,593,423 81,696,386 Unrestricted 7,313,746 10,147,716 Total Net Assets $ 96,907,169 $ 91,844,102 The accompanying notes are an integral part of these financial statements. -16- EAST VALLEY WATER DISTRICT STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS FOR THE YEARS ENDED JUNE 30, 2008 AND 2007 2008 2007 OPERATING REVENUES: Water sales $ 13,576,217 $ 13,111,339 Sewer charges 8,505,060 8,139,600 Other charges 1,117,421 726,890 23,198,698 21,977,829 OPERATING EXPENSES: Water Department: Source of supply 438,134 390,124 Pumping 3,005,392 3,252,809 Treatment 709,406 600,795 Transmission and distribution 1,255,931 972,528 Customer accounts 456,159 426,118 5,865,022 5,642,374 Sewer Department: Wastewater collection 333,588 272,053 Treatment 5,561,830 5,607,172 5,895,418 5,879,225 Administration and general 5,913,997 5,412,375 Depreciation 2,991,186 2,814,830 8,905,183 8,227,205 Total Operating Expenses 20,665,623 19,748,804 Operating Income 2,533,075 2,229,025 The accompanying notes are an integral part of these financial statements. -17- Exhibit “B” 2008 2007 NONOPERATING REVENUES (EXPENSE): Investment income $ 510,361 $ 539,720 Other income 64,043 140,474 Gain (loss) on disposal of assets (36,983) 28,142 Interest expense (776,466) (554,914) Amortization (37,956) (37,955) (277,001) 115,467 Income Before Contributions and Transfers 2,256,074 2,344,492 CONTRIBUTIONS AND TRANSFERS: Utility plant dedicated 792,840 2,685,398 Capacity charges 1,291,293 649,928 Grants 1,826,543 195,089 Capital contribution from mutual water company (North Fork) 367,894 - Transfer of capital asset (CIP) to mutual water company (North Fork) (1,471,577) - 2,806,993 3,530,415 CHANGE IN NET ASSETS 5,063,067 5,874,907 NET ASSETS - BEGINNING OF YEAR 91,844,102 85,969,195 NET ASSETS - END OF YEAR $ 96,907,169 $ 91,844,102 The accompanying notes are an integral part of these financial statements. -18- EAST VALLEY WATER DISTRICT STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2008 AND 2007 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 23,035,660 $ 21,906,572 Cash payments to employees for services (5,117,280) (4,219,455) Cash payments to suppliers for goods and services (11,979,393) (12,819,660) Cash from other sources 46,583 173,877 NET CASH PROVIDED BY OPERATING ACTIVITIES 5,985,570 5,041,334 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Grant funds received 1,518,926 191,192 Contributed capital 1,291,293 649,928 Principal paid on capital debt (1,781,471) (1,946,965) Interest paid on capital debt (1,120,091) (1,206,434) Acquisition and construction of capital assets (15,626,547) (6,149,874) Net proceeds on retired assets 10,095 95,258 NET CASH (USED FOR) CAPITAL AND RELATED FINANCING ACTIVITIES (15,707,795) (8,366,895) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received from investments 797,637 1,123,807 Acquisition of investments in debt securities (9,741,228) (11,130,482) Proceeds from sales of investments in debt securities 9,057,262 19,430,254 Loan collections from AVAD property owners 20,797 19,192 NET CASH PROVIDED BY INVESTING ACTIVITIES 134,468 9,442,771 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (9,587,757) 6,117,210 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 15,764,709 9,647,499 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 6,176,952 $ 15,764,709 The accompanying notes are an integral part of these financial statements. -19- Exhibit "C" 2008 2007 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income $ 2,533,075 $ 2,229,025 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation 2,991,186 2,814,830 Other non-operating income 64,043 140,474 CHANGES IN ASSETS AND LIABILITIES: (Increase) decrease in accounts receivable 14,476 (187,196) (Increase) decrease in other receivables (17,460) 33,403 (Increase) decrease in inventory (20,498) (63,220) (Increase) decrease in prepaid expenses (76,383) 125,958 Increase (decrease) in trade accounts payable 492,224 (297,891) Increase (decrease) in accrued salaries and vacation pay 182,421 130,012 Increase (decrease) in customer and other deposits 19,752 83,439 Increase (decrease) in developers’ deposits (197,266) 32,500 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 5,985,570 $ 5,041,334 RECONCILIATION TO STATEMENT OF NET ASSETS: Ending cash and cash equivalents are presented on the accompanying statements of net assets as follows: Current Assets: Cash in bank and on hand $ 579,294 $ 1,223,497 Investment in Local Agency Investment Fund 1,359,534 3,378,575 Restricted Assets: Cash 4,238,124 11,162,637 $ 6,176,952 $ 15,764,709 NON-CASH INVESTING, CAPITAL AND NONCAPITAL FINANCING ACTIVITIES: Utility Plant contributed by developers $ 792,840 $ 2,685,398 Fair value adjustment to debt securities $ 35,757 $ 16,477 Transfer of capital asset (CIP) to North Fork (grant project) $ 1,471,577 $ - Capital contribution from North Fork (grant project) $ 367,894 $ - North Fork stock basis increase from EVWD share of capital contribution (grant project) $ 297,884 $ - -20- THIS PAGE LEFT INTENTIONALLY BLANK -21- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 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 and District management also act as the governing body of the Corporation. The Corporation is managed by employees of the District. -22- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 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.” -23- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 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. Implementation of New Pronouncements Effective July 1, 2007, the Easy Valley Water District adopted a new accounting statement issued by the Governmental Accounting Standards Board (GASB): Statement No. 50, Pension Disclosures This Statement amends Statement 27 to require cost-sharing employers to include, in the note disclosure the required contribution rates of the employer in dollars and the percentage of that amount contributed for the current year and each of the two preceding years and how the contractually required contribution rate is determined. Inventory 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. -24- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 NOTE 1: NATURE OF ORGANIZATION AND SUMMARY OF ACCOUNTING POLICIES (continued) 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. 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. -25- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 NOTE 1: NATURE OF ORGANIZATION AND SUMMARY OF ACCOUNTING POLICIES (continued) 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. NOTE 2: CAPITAL ASSETS A summary of changes in utility plant for the years ended June 30, 2008 and 2007 follows: June 30, 2008 Capital assets, being depreciated/amortized: Water Balance June 30, 2007 Increases Decreases Balance June 30, 2008 Source of supply plant $ 23,647,263 $ 765,567 $ 28,749 $ 24,384,081 Pumping plant 7,851,803 330,302 53,789 8,128,316 Treatment plant 9,244,551 425,864 - 9,670,415 Transmission and distribution plant 54,255,712 1,853,594 - 56,109,306 General plant 4,028,155 952,539 38,408 4,942,286 99,027,484 4,327,866 120,946 103,234,404 Sewer Collection plant 21,341,742 1,520,551 - 22,862,293 General plant 2,968,055 315,798 38,409 3,245,444 24,309,797 1,836,349 38,409 26,107,737 Total $123,337,281 $ 6,164,215 $ 159,355 $129,342,141 -26- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 NOTE 2: CAPITAL ASSETS (continued) Capital assets, not being depreciated/amortized: Water Balance June 30, 2007 Increases Decreases Balance June 30, 2008 Land and easements $ 2,305,639 $ 915,030 $ - $ 3,220,669 Intangible plant 20,954 - - 20,954 Water stock and rights 1,064,855 297,884 - 1,362,739 Construction in progress 7,591,636 9,579,897 - 17,171,533 10,983,084 10,792,811 - 21,775,895 Sewer Land and easements 29,215 - - 29,215 Construction in progress 1,863,160 - 1,051,919 811,241 1,892,375 - 1,051,919 840,456 Total $ 12,875,459 $10,792,811 $ 1,051,919 $ 22,616,351 June 30, 2007 Capital assets, being depreciated/amortized: Water Balance June 30, 2006 Increases Decreases Balance June 30, 2007 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 87,436,597 11,783,883 192,996 99,027,484 Sewer Collection plant 20,940,623 451,159 50,040 21,341,742 General plant 2,939,092 117,819 88,856 2,968,055 23,879,715 568,978 138,896 24,309,797 Total $111,316,312 $12,352,861 $ 331,892 $123,337,281 -27- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 NOTE 2: CAPITAL ASSETS (continued) Capital assets, not being depreciated/amortized: Water Balance June 30, 2006 Increases Decreases Balance 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 Construction in progress 11,746,059 - 4,154,423 7,591,636 14,904,219 233,288 4,154,423 10,983,084 Sewer Land and easements 29,215 - - 29,215 Construction in progress 1,375,360 487,800 - 1,863,160 1,404,575 487,800 - 1,892,375 Total $ 16,308,794 $ 721,088 $ 4,154,423 $ 12,875,459 NOTE 3: CASH AND INVESTMENTS Cash and investments as of June 30, 2008 and 2007 are classified in the accompanying financial statements as follows: 2008 2007 Statement of Net Assets: Current Assets: Cash in bank and on hand $ 579,294 $ 1,223,497 Investment in Local Agency Investment Fund 1,359,534 3,378,575 Investment in debt securities 4,713,445 4,165,499 6,652,273 8,767,571 Restricted Assets: Cash 4,238,124 11,162,637 Investments 1,498,435 1,398,172 5,736,559 12,560,809 Total Cash and Investments $ 12,388,832 $ 21,328,380 -28- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 NOTE 3: CASH AND INVESTMENTS (continued) Cash and investments as of June 30, 2008 and 2007 consist of the following: 2008 2007 Cash on hand $ 1,750 $ 1,750 Deposits with financial institutions 170,418 474,441 Money market accounts with financial institutions 2,921,929 10,009,108 Investments in LAIF 3,082,855 5,279,410 Investment in debt securities 6,211,880 5,563,671 $ 12,388,832 $ 21,328,380 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 Type Maximum Maturity Authorized limit (%) Required Rating Bonds & Certificates of Participation issued by EVWD 5 years None None U.S. Treasury Bills, Notes or Bonds 5 years None None State Registered Warrants, Notes or Bonds 5 years None None Notes & Bonds of other Local California Agencies 5 years None None U.S. Agencies 5 years None None Negotiable Certificates of Deposits 5 years 30% None Money Market Mutual Funds & Mutual Funds 5 years 15% 2-AAA Collateralized Bank Deposits 5 years None None Local Agency Investment Fund (LAIF) 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, 2008, 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. -29- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 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, 2008, the District had the following investments and maturities: Investment Type Fair Value Less Than 1 Year 1 - 2 Years LAIF $ 3,082,855 $ 3,082,855 $ - Farmer Mac 100,125 100,125 - Federal Farm Credit Bank 612,814 - 612,814 Federal Home Loan Bank 3,532,079 998,905 2,533,174 US Treasury Note 1,966,862 1,414,049 552,813 $ 9,294,735 $ 5,595,934 $ 3,698,801 As of June 30, 2007, the District had the following investments and maturities: Investment Type Fair Value Less Than 1 Year 1 - 2 Years LAIF $ 5,279,410 $ 5,279,410 $ - Farmer Mac 349,711 349,711 - Federal Farm Credit Bank 49,953 49,953 - Federal Home Loan Bank 3,421,232 2,996,536 424,696 US Treasury Bill 297,455 297,455 - US Treasury Note 1,445,320 1,247,624 197,696 $ 10,843,081 $ 10,220,689 $ 622,392 -30- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 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 rating 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 Amount Minimum Legal Rate Actual Rate LAIF $ 3,082,855 N/A N/A Farmer Mac 100,125 N/A AAA Federal Farm Credit Bank 612,814 N/A AAA Federal Home Loan Bank 3,532,079 N/A AAA US Treasury Note 1,966,862 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, 2008 and 2007, the following investments exceeded 5% of the District’s total investments: Investment Type Percentage Invested 2008 LAIF 33.17% Federal Farm Credit Bank 6.59% Federal Home Loan Bank 38.00% US Treasury Note 21.16% Investment Type Percentage Invested 2007 LAIF 48.69% Federal Home Loan Bank 31.55% US Treasury Note 13.33% -31- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 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, 2008 and 2007, $405,287 and $411,939 respectively, of the District’s deposits with financial institutions were in excess of federal depository insurance limits. On October 3, 2008, the Emergency Economic Stabilization Act of 2008 became effective, which temporarily increases the federal deposit insurance limit from $100,000 to $250,000. The limit will return to $100,000 after December 31, 2009. 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, 2008, the carrying amount (at amortized cost) of the pool was $70,027,950,242 and the estimated fair value of the pool was $70,024,464,150. The District’s proportionate share of the pool’s market value (as determined by LAIF) as of June 30, 2008, was $3,082,702. 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. -32- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 NOTE 4: LONG-TERM DEBT Long-term debt reflected on the accompanying Statement of Net Assets includes the following: June 30, 2008 June 30, 2007 Arroyo Verde Assessment District Construction Loan - Interest at 0%; maturities through 2031 $ 152,147 $ 158,909 1996 Refunding Certificates of Participation - Interest from 3.25% to 5.40%; maturities through 2009 1,190,000 1,730,000 2001 Certificates of Participation - Interest from 4.25% to 5.00%; maturities through 2020 7,405,000 8,095,000 2004 Project Installment Sale Note - Interest 4.50%; maturities through 2024 8,825,667 9,180,054 2006 Project Installment Sale Note - Interest 4.95%; maturities through 2026 5,628,438 5,818,760 23,201,252 24,982,723 Less: Issuance discounts (6,711) (10,371) Add: Issuance premiums 43,709 50,434 23,238,250 25,022,786 Less Current Portion: DWR - Arroyo Verde Construction Loan 3,381 3,381 1996 Certificates 575,000 540,000 2001 Certificates 720,000 690,000 2004 Installment Note 370,515 354,388 2006 Installment Note 199,859 190,322 1,868,755 1,778,091 Discounts and premium 3,064 3,065 1,871,819 1,781,156 $ 21,366,431 $ 23,241,630 -33- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 NOTE 4: LONG-TERM DEBT (continued) The schedule below summarizes changes in long-term debt principal during the years ended June 30, 2008 and 2007. June 30, 2008 June 30, 2007 Additions Payments June 30, 2008 Arroyo Verde Assessment District Construction Loan $ 158,909 $ - $ 6,762 $ 152,147 1996 COPS 1,730,000 - 540,000 1,190,000 2001 COPS 8,095,000 - 690,000 7,405,000 2004 Project Installment Sale Note 9,180,054 - 354,387 8,825,667 2006 Project Installment Sale Note 5,818,760 - 190,322 5,628,438 $ 24,982,723 $ - $ 1,781,471 $ 23,201,252 June 30, 2007 June 30, 2006 Additions Payments June 30, 2007 Arroyo Verde Assessment District Construction Loan $ 165,671 $ - $ 6,762 $ 158,909 1996 COPS 2,490,000 - 760,000 1,730,000 2001 COPS 8,755,000 - 660,000 8,095,000 2004 Project Installment Sale Note 9,519,017 - 338,963 9,180,054 2006 Project Installment Sale Note 6,000,000 - 181,240 5,818,760 $ 26,929,688 $ - $ 1,946,965 $ 24,982,723 -34- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 NOTE 4: LONG-TERM DEBT (continued) The aggregate debt service requirements to maturity for all long-term debt as of June 30, 2008 and 2007 is as follows: June 30, 2008 Year Ending June 30, Principal Interest Total 2009 $ 1,868,755 $ 1,035,455 $ 2,904,210 2010 1,969,012 945,499 2,914,511 2011 1,417,157 868,129 2,285,286 2012 1,451,632 805,186 2,256,818 2013 1,512,500 739,493 2,251,993 2014 – 2018 6,424,015 2,723,657 9,147,672 2019 – 2023 6,096,333 1,313,806 7,410,139 2024 – 2028 2,441,560 165,645 2,607,205 2029 – 2031 20,288 - 20,288 $ 23,201,252 $ 8,596,870 $ 31,798,122 June 30, 2007 Year Ending June 30, Principal Interest Total 2008 $ 1,778,091 $ 1,120,089 $ 2,898,180 2009 1,872,135 1,035,456 2,907,591 2010 1,969,012 945,499 2,914,511 2011 1,417,157 868,129 2,285,286 2012 1,451,632 805,186 2,256,818 2013 – 2017 6,826,380 3,026,663 9,853,043 2018 – 2022 6,112,562 1,597,864 7,710,426 2023 – 2027 3,528,704 318,074 3,846,778 2028 – 2031 27,050 - 27,050 $ 24,982,723 $ 9,716,960 $ 34,699,683 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 $238,179 interest for the year ended June 30, 2008 and $175,153 for the year ended June 30, 2007. -35- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 NOTE 4: LONG-TERM DEBT (continued) Security Security for debt is as follows: DEBT SECURITY Certificates of Participation (Series 1996 Certificates and 2001 Certificates) and 2004 and 2006 Project Installment Sale. 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, 2008 net water revenues represented 206% 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, 2008 and 2007 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 fees, 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 $203,488. -36- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 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), a cost sharing 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. -37- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 NOTE 6: DEFINED BENEFIT PENSION PLAN (PERS) (continued) 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. The District is required to contribute at an actuarially determined rate; the contribution rate indicated for the period is 15.056 percent of annual covered payroll. Benefit provisions and all other requirements are established by state statute and District ordinance. For the year ended June 30, 2008, the amount contributed by the District on behalf of the employees was $736,225 and was equal to the District’s required contributions. The required contribution was determined as part of the June 30, 2006, actuarial valuation using the entry age normal actuarial cost method. Three Year Trend Information Fiscal Year Annual Pension Cost (APC) Percentage of APC Contributed Net Pension Obligation June 30, 2006 $ 635,092 100% 0 June 30, 2007 $ 601,748 100% 0 June 30, 2008 $ 736,225 100% 0 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. 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, 2005 valuation was a negative $1,413,851. 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, 2005, was 9 years. 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. -38- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 NOTE 7: OPERATING LEASE (continued) 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, 2008 and 2007 was $141,648 and $127,748, 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 $30,932 for the year ended June 30, 2008 and $30,773 for the year ended June 30, 2007. Future minimum rental payments required for all operating leases are as follows: Year Ended June 30, 2009 $ 140,020 NOTE 8: COMMITMENTS Basin Water, Inc. - Agreement #1 The District entered into a 10-year agreement for wellhead treatment with Basin Water, Inc. The agreement required Basin Water to install and maintain treatment facilities at a District well that is contaminated by Nitrates (Cull Well 2 also known as Cull Well 132). The District and Basin Water, Inc. entered into a subsequent agreement to demobilize the treatment facilities at the Cull Well 132 and install them at Well 107. The agreement for the operation of the wellhead treatment was then amended to be appropriate for the needs at Well 107. The term of the amended agreement is for 10 years. The District will pay $453 per acre foot (Per Acre Foot Treatment Fee) of treated/blended water. The Acre Foot Treatment Fee is based upon the District’s representation that it will pump, and deliver for processing and treatment, 1500 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 $158 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 $340 (Additional Treatment Fee). -39- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 NOTE 8: COMMITMENTS (continued) The minimum amount (Minimum Treatment Fee) to be paid by the District for any year covered by the agreement is $237,000 (1500 AF x $158). Basin 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 continued for one year with an option to extend for an additional year. Agreement #2 expired on June 19, 2008 and the District agreed to month to month terms until a new agreement was signed. The original contract price of $195 per acre foot as indexed by the consumer price index was $210 as of June 30, 2007. The month to month agreement set the fee at $520 per acre foot. Basin Water, Inc. – Agreement #1 and Agreement #2 Combined In October 2008, the District and Basin Water, Inc. signed the “Second Amendment to the East Valley Water District Water Services Agreement (WSA) Well #107.” This amendment combined the services for Well 107 and Well 27 into a single agreement with an effective date retroactive to June 17, 2008 to go through June 16, 2018. This amendment has the following terms: Per Acre Foot Treatment fee (up to the Base Quantity): $480 Base Quantity (for Well 107 and Well 27 combined): 2,000 acre feet Per Acre Foot Treatment fee (if in excess of the Base Quantity) $360 The Per Acre Foot Treatment fee ($480) times the Base Quantity (2,000 acre fee) equals $960,000, which represents the minimum payable annually under this Second Amendment. 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 $26,156. The investigation by the State is in its preliminary stages 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. -40- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 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 under 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, 2008, the District participation in the self-insurance programs of the Authority was as follows: Limits Deductible Personal Injury and Property Damage Liability Coverage - General 10,000,000 per occurrence / aggregate where applicable $500 (property damage only) Personal Injury and Property Damage Liability Coverage - Auto 10,000,000 per accident $1,000 Public Officials and Employees Errors and Omissions Liability 10,000,000 per wrongful act / annual member aggregate none Employment Practices Liability 10,000,000 per wrongful employment practice / aggregate limits per member included with Public Officials and Employee Errors and Omissions Coverage none up to $10,000 50% co-insurance from $10,000 to $50,000 none for amounts greater than $50,000 Employee Benefits Liability 10,000,000 per wrongful act / annual member aggregate none Employee Dishonesty Coverage 400,000 per loss none Public Officials Personal Liability 10,000,000 per occurrence / annual aggregate per Board Member $ 500 Automobile Physical Damage replacement cost (stated value adjusted for depreciation) (on selected vehicles) $250/$500 or $500/$1,000 comprehensive / collision (as elected per vehicle) Uninsured Motorist Bodily Injury Coverage 750,000 per accident none Property Coverage 350,000,000 replacement cost for scheduled property if replaced (if not replaced within two years, actual cash value basis) $2,000 Boiler and Machinery 100,000,000 replacement cost $1,000 -41- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 NOTE 10: JOINT VENTURE (continued) Condensed financial information of the Authority for the year ended June 30, 2007 is as follows: Complete financial statements are available directly from the Authority. The financial information for the year ended June 30, 2008 is not yet available. Total Assets $ 60,103,067 Total Liabilities $ 42,623,168 Total Net Assets 17,479,899 Total Liabilities and Net Assets $ 60,103,067 Total Revenues $ 28,957,986 Total Expenses 28,192,556 Change in Net Assets $ 765,430 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, 2008 and 2007 were $58,295 and $58,295, respectively. The District has a construction project in progress (“North Fork FEMA”) which is a water canal replacement project. Fifty percent of the project belongs to East Valley Water District and 50% belongs to North Fork. For the year ended June 30, 2008, $1,471,577 of construction in progress was transferred to North Fork. Seventy-five percent of the eligible costs are expected to be paid by a Federal Emergency Management Agency (FEMA) grant. The remaining 25% is to be paid by East Valley Water District and North Fork. There has been a receivable accrued to account for North Fork’s share of cost with a corresponding capital contribution. Likewise, there has been a payable accrued with a corresponding increase in North Fork stock for East Valley Water District’s share of North Fork’s cost since the District owns 80.97% of the stock. -42- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 AND 2007 NOTE 11: RELATED ORGANIZATIONS (continued) Receivable and payable balances to related entities are as follows: June 30, 2008 June 30, 2007 Receivable from: North Fork $ 380,525 $ 470 City Creek 28,583 27,792 Payable to: North Fork 297,884 - 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 $97.00 per month. At June 30, 2008, ten retirees met these eligibility requirements. Expenditures for post-retirement medical health care benefits are recognized as the premiums are paid. Expenditures of $40,401 were incurred by the District for post-retirement medical health care benefits for the year ended June 30, 2008. NOTE 13: FINANCIAL STATEMENT PRESENTATION Certain amounts in the financial statements for the year ended June 30, 2007 have been reclassified to conform to the presentation of the year ended June 30, 2008 financial statements. These reclassifications resulted in no changes to total assets, liabilities, net assets or change in net assets of the District. -44- THIS PAGE LEFT INTENTIONALLY BLANK -45- 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, 2008 AND 2007 2008 2007 OPERATING REVENUES: Water sales $ 13,576,217 $ 13,111,339 Connection charges 478,975 425,825 Other water services 529,329 289,978 Total Operating Revenues 14,584,521 13,827,142 OPERATING EXPENSES: Source of Supply: Supervision and labor 53,927 50,004 Laboratory analysis 179,200 146,106 Groundwater replenishment 145,302 129,172 North Fork - assessments 58,295 58,295 Supplies 1,410 6,222 Maintenance - 325 438,134 390,124 Pumping: Supervision and labor 467,642 428,843 Maintenance 317,546 467,845 Fuel and power 2,161,205 2,309,282 Supplies 58,999 46,839 3,005,392 3,252,809 Water Treatment: Supervision and labor 95,049 98,752 Contracted treatment 302,317 115,547 Other outside services 269,843 344,035 Supplies 42,197 42,461 709,406 600,795 Transmission and Distribution: Supervision and labor 823,760 563,738 Outside services 148,002 171,701 Supplies 284,169 237,089 1,255,931 972,528 -46- 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, 2008 AND 2007 2008 2007 OPERATING EXPENSES (continued): Customer Accounts: Supervision and labor $ 372,202 $ 332,570 Uncollectible accounts 2,559 19,740 Supplies 81,398 73,808 456,159 426,118 Administrative and General: Salaries and wages 1,048,600 873,182 Taxes and benefits 1,103,892 880,904 Utilities 86,585 82,656 Outside services 366,738 323,235 Legal and accounting 54,443 68,226 Director’s fees 50,827 47,773 Insurance 313,291 425,055 Office supplies and expense 71,749 63,532 Meetings, seminars and supplies 121,621 162,679 Vehicle and equipment expense 359,297 333,653 Regulatory fees 46,201 38,089 Disaster/emergency expense - 17,021 Dues and subscriptions 85,235 57,253 General plant maintenance 265,796 261,528 Rent 99,434 92,784 Federal and state representation 86,831 48,125 Bank service charges 45,402 31,570 Miscellaneous expenses 303 400 Election expense 178 - 4,206,423 3,807,665 OPERATING EXPENSES BEFORE DEPRECIATION 10,071,445 9,450,039 Depreciation 2,357,201 2,192,052 Total Operating Expenses 12,428,646 11,642,091 Operating Income 2,155,875 2,185,051 -47- 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, 2008 AND 2007 2008 2007 NON-OPERATING REVENUE: Investment income $ 316,792 $ 323,256 Gain from disposition of assets - 15,855 Miscellaneous 25,093 106,269 Total Non-Operating Income 341,885 445,380 NON-OPERATING EXPENSES: Interest expense 776,466 554,914 Amortization - issuance costs 35,280 35,280 Amortization expense - lease costs 2,676 2,675 Loss on disposal of assets 41,142 - Total Non-Operating Expenses 855,564 592,869 Income Before Contributions and Transfers 1,642,196 2,037,562 CONTRIBUTIONS AND TRANSFERS: Utility plant dedicated 432,575 1,737,873 Capacity charges 1,102,289 516,619 Grant 1,826,543 195,089 Capital contribution from mutual water company (North Fork) 367,894 - Transfer of capital asset to mutual water company (North Fork) (1,471,577) - 2,257,724 2,449,581 CHANGE IN NET ASSETS $ 3,899,920 $ 4,487,143 -48- 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, 2008 AND 2007 2008 2007 OPERATING REVENUES: Service charges $ 8,505,060 $ 8,139,600 Other sewer services 109,117 11,087 Total Operating Revenues 8,614,177 8,150,687 OPERATING EXPENSES: Sewage Collection: Salaries and wages 232,521 204,108 Uncollectible accounts 1,097 6,067 Operating supplies 46,668 11,231 Repairs and maintenance 53,302 50,647 333,588 272,053 Sewage Treatment 5,561,830 5,607,172 Administrative and General: Salaries and wages 602,140 500,774 Taxes and benefits 424,952 350,595 Utilities 36,355 34,906 Outside services 162,140 147,478 Legal and accounting 23,278 29,099 Director’s fees 24,189 18,224 Insurance 76,105 115,654 Office supplies and expense 68,161 107,715 Meetings, seminars and travel 45,363 51,789 Vehicle and equipment expense 131,207 155,354 Regulatory fees 4,177 6,655 Disaster/Emergency expense - 1,193 Dues and subscriptions 14,892 16,263 General plant maintenance 16,235 15,436 Rent 42,614 39,764 State representation 16,200 - Bank service charges 19,458 13,781 Miscellaneous expense 108 30 1,707,574 1,604,710 -49- 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, 2008 AND 2007 2008 2007 OPERATING EXPENSES BEFORE DEPRECIATION $ 7,602,992 $ 7,483,935 Depreciation 633,985 622,778 Total Operating Expenses 8,236,977 8,106,713 Operating Income 377,200 43,974 NON-OPERATING REVENUE (EXPENSES): Investment income 193,569 216,464 Penalties and shut off charges 37,942 34,219 Miscellaneous 1,008 (14) Gain on disposal of assets 4,159 12,287 236,678 262,956 Income Before Contributions 613,878 306,930 CONTRIBUTIONS: Utility plant dedicated 360,265 947,525 Capacity charges 189,004 133,309 549,269 1,080,834 CHANGE IN NET ASSETS $ 1,163,147 $ 1,387,764 -50- EAST VALLEY WATER DISTRICT SCHEDULE OF CAPITAL ASSETS - WATER JUNE 30, 2008 -----------------------------------Cost of Assets---------------------------------- Balance June 30, 2007 Increases Decreases Balance June 30, 2008 Capital assets, not being depreciated/amortized: Land held for future use * $ 1,288,265 $ 77,885 $ - $ 1,366,150 Land and easements * 1,017,374 837,145 - 1,854,519 Intangible plant 20,954 - - 20,954 Water stock and rights 1,064,855 297,884 - 1,362,739 Construction in progress 7,591,636 9,579,897 - 17,171,533 Total capital assets, not being depreciated/ amortized 10,983,084 10,792,811 - 21,775,895 Capital assets, being depreciated/ amortized: Source of supply plant: Wells, reservoirs and tanks 23,612,690 765,567 28,749 24,349,508 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 9,244,551 425,864 - 9,670,415 Pumping plant - Highland 536,888 - - 536,888 Pumping plants 5,948,286 330,302 53,789 6,224,799 Transmission and Distribution Plant: Pipelines and services - Highland System 4,112,741 - - 4,112,741 Pipelines and services 44,858,118 1,417,813 - 46,275,931 Meters 3,794,221 435,781 - 4,230,002 Telemetry and control 353,738 - - 353,738 North Fork Canal 689,639 - - 689,639 Reservoirs and tanks - Highland 447,255 - - 447,255 General Plant: Land improvements 58,688 258,768 - 317,456 Building 705,623 11,845 - 717,468 Office furniture and equipment 1,415,610 307,288 - 1,722,898 Transportation and general equipment 1,848,234 374,638 38,408 2,184,464 Total capital assets, being depreciated/ amortized 99,027,484 4,327,866 120,946 103,234,404 Totals $110,010,568 $ 15,120,677 $ 120,946 $ 125,010,299 *Land amounts were grouped together on June 30, 2007 financial statements. -51- Schedule Three Page 1 of 2 --------------------------Accumulated Depreciation--------------------------- Balance June 30, 2007 Increases Decreases Balance June 30, 2008 Capital assets, being depreciated/ amortized: Source of supply plant: Wells, reservoirs and tanks $ 4,918,173 $ 500,136 $ 17,894 $ 5,400,415 Well - Highland System 21,180 440 - 21,620 Pumping Plant: Hydro plant 59 403,907 21,833 - 425,740 Pumping plant 127 101,746 5,499 - 107,245 Treatment plant facility 2,226,645 232,143 - 2,458,788 Pumping plant - Highland 191,099 10,737 - 201,836 Pumping plants 1,739,957 145,131 17,566 1,867,522 Transmission and Distribution Plant: Pipelines and services - Highland System 1,396,682 82,255 - 1,478,937 Pipelines and services 11,948,638 905,011 - 12,853,649 Meters 1,535,015 123,112 - 1,658,127 Telemetry and control 309,948 29,194 - 339,142 North Fork Canal 164,804 13,792 - 178,596 Reservoirs and tanks - Highland 162,129 8,945 - 171,074 General Plant: Land improvements 17,277 12,284 - 29,561 Building 397,391 18,286 - 415,677 Office furniture and equipment 1,100,997 97,949 - 1,198,946 Transportation and general equipment 1,442,848 150,454 38,408 1,554,894 28,078,436 2,357,201 73,868 30,361,769 Total accumulated depreciation $ 28,078,436 $ 2,357,201 $ 73,868 $ 30,361,769 -52- EAST VALLEY WATER DISTRICT SCHEDULE OF CAPITAL ASSETS - SEWER JUNE 30, 2008 -----------------------------------Cost of Assets---------------------------------- Balance June 30, 2007 Increases Decreases Balance June 30, 2008 Capital assets, not being depreciated/amortized: Land and easements $ 29,215 $ - $ - $ 29,215 Construction in progress 1,863,160 - 1,051,919 811,241 Total capital assets, not being depreciated/ amortized 1,892,375 - 1,051,919 840,456 Capital assets, being depreciated/amortized: Collection Plant: Sewage pipelines and services 21,341,742 1,520,551 - 22,862,293 General Plant: Building 300,182 - - 300,182 Office furniture and equipment 1,126,728 32,145 - 1,158,873 Transportation and general equipment 1,541,145 283,653 38,409 1,786,389 Total capital assets, being depreciated/ amortized 24,309,797 1,836,349 38,409 26,107,737 Totals $ 26,202,172 $1,836,349 $ 1,090,328 $ 26,948,193 -53- Schedule Three Page 2 of 2 --------------------------Accumulated Depreciation--------------------------- Balance June 30, 2007 Increases Decreases Balance June 30, 2008 Capital assets, being depreciated/amortized: Collection Plant: Sewage pipelines and services $ 9,494,167 $ 442,528 $ - $ 9,936,695 General Plant: Building 187,353 10,428 - 197,781 Office furniture and equipment 845,302 66,081 - 911,383 Transportation and general equipment 1,136,620 114,948 38,409 1,213,159 11,663,442 633,985 38,409 12,259,018 Total accumulated depreciation $ 11,663,442 $ 633,985 $ 38,409 $ 12,259,018 -54- Schedule Four Page 1 of 7 EAST VALLEY WATER DISTRICT CAPITAL ASSETS SCHEDULE OF INCREASES AND DECREASES - WATER YEAR ENDED JUNE 30, 2008 INCREASES: CAPITAL ASSETS, NOT BEING DEPRECIATED/AMORTIZED: Land held for future use Costs associated with Patton property $ 77,885 77,885 Land and easements Property to the west of Citrus and Mountain Ave. 837,145 837,145 Water stock and rights Capital assessment for share of costs in North Fork water canal replacement through June 30, 2008 297,884 297,884 Construction in process Net increase in costs for various jobs 9,579,897 9,579,897 Total increases for capital assets, not being depreciated/amortized 10,792,811 CAPITAL ASSETS, BEING DEPRECIATED/AMORTIZED: Wells, reservoirs and tanks Plant 27 re-activation 111,434 Plant 107 rehabilitation – preparation for Basin Water treatment facility 376,923 Plant 101 rehabilitation of reservoir 277,210 765,567 Pumping Plant: Treatment Plant Facility: Basin water treatment facility – cement pad 45,338 Basin water treatment facility – underground wiring 86,999 Basin water treatment facility – demobilization and mobilization costs 285,000 Plant 134 making phone connect 8,527 425,864 Pumping Plants: Plant 27 re-activation 306,507 Transfer switch for generator hook up 23,795 330,302 -55- Schedule Four Page 2 of 7 EAST VALLEY WATER DISTRICT CAPITAL ASSETS SCHEDULE OF INCREASES AND DECREASES - WATER YEAR ENDED JUNE 30, 2008 INCREASES (continued): CAPITAL ASSETS, BEING DEPRECIATED/AMORTIZED (continued): Transmission and Distribution Plant: Pipeline and Services: Tract # 16014 $ 1,220,989 Tract # 16543 6,662 Tract # 17590 30,127 Main line from Plant 132 south on San Francisco to Sparks west on Sparks to Victoria 94,282 Waterline replacement at flood control channel and Pumalo 23,404 3 x 5 Vault lid 1,778 4 x 6 Vault lid 2,473 4 x 6 Vault lid 2,473 4 x 8 Vault lid 3,286 PRV on Orange Street between Oleander and Mercedes 29,444 4” DDC at Church and Greenspot 2,895 1,417,813 Meters: 3” Compound meter with radio read 2,745 3” Turbine meter with radio read 2,540 Flowmeter 12’ 0-3000 GPM and transmitter 2,739 3” Turbine meter with radio read 2,540 3” Turbine meter 1,482 Meter replacement program 343,748 Service replacements 5,867 8” DDC – 1314 Date Street 8,375 4” DDC – 28891 Merris Street 4,714 6” DDC and (3) 1.5” meters – 7354 Stony Creek 12,569 8” DDC and (2) 2” meters - 6th and Central 14,267 6” DDC – 27184 Meines 9,657 6” DDC and (3) 1” meters - Baseline and Boulder 15,054 8” DDC – San Gorgonio High School 9,484 435,781 -56- Schedule Four Page 3 of 7 EAST VALLEY WATER DISTRICT CAPITAL ASSETS SCHEDULE OF INCREASES AND DECREASES - WATER YEAR ENDED JUNE 30, 2008 INCREASES (continued): CAPITAL ASSETS, BEING DEPRECIATED/AMORTIZED (continued): General Plant: Land improvements: Plant 27 – fence $ 13,980 Plant 27 – block wall 56,431 Plant 27 – pads 52,623 Plant 27 – sidewalk and driveway 60,410 Plant 27 – slag 26,816 Plant 107 rehabilitation and preparation for Basin Water Treatment Facility – grade and pave roadway (13,790 feet) 48,508 258,768 Building: Plant 27 – sound reducer enclosure 11,845 11,845 Office Furniture and Equipment: Sony tape drive 745 Latitude D830 laptop 890 New server 4,375 Backflow software 5,320 Auto cad software 4,048 EVWD website 3,171 Auto Tel payment processing machine 11,000 Historical photos – Board room 2,596 Water master plan 275,143 307,288 Transportation and General Equipment: Trench digger 547 Trailer mounted air compressor 7,922 40’ Storage container 5,843 Electrical hook up for 40’ storage container 2,688 2 Trench plates 2,333 22” Pipe tongs 1,266 Grabber power 484 20’ container (mobile mini) – Plant 27 1,766 Dump truck 52,938 Water truck 74,945 2008 GMC 4500 truck 87,484 -57- Schedule Four Page 4 of 7 EAST VALLEY WATER DISTRICT CAPITAL ASSETS SCHEDULE OF INCREASES AND DECREASES - WATER YEAR ENDED JUNE 30, 2008 INCREASES (continued): CAPITAL ASSETS, BEING DEPRECIATED/AMORTIZED (continued): Transportation and General Equipment: 2008 3/4 ton GMC Sierra $ 12,228 2008 3500H Chevy Silverado 14,143 2008 GMC Sierra 2500-HD - #321 29,118 2008 GMC Sierra 2500-HD - #323 29,118 2008 GMC Sierra 2500-HD 14,559 2008 GMC Sierra 2500-HD 14,559 2008 GMC Sierra 2500-HD 14,559 Particulate filter – truck #102 7,328 Weather Guard tool box for # 208 405 Weather Guard tool box for # 130 405 374,638 Total increases for capital assets, being depreciated/amortized 4,327,866 TOTAL INCREASES $ 15,120,677 DECREASES: CAPITAL ASSETS, BEING DEPRECIATED/AMORTIZED: Wells, reservoirs and tanks Plant 27 additions demolished $ 1,140 Plant 27 additions demolished 999 Plant 27 install drain demolished 4,120 Plant 40 additions demolished 158 Plant 122 well site on Satinwood 10,561 Plant 27 tanks demolished 5,871 Plant 27 tanks demolished 606 Plant 107 replace 30hp motor demolished 5,294 28,749 Plumbing Plant: Pumping Plants: Plant 27 automatic controls demolished 1,314 Plant 27 lower bowls demolished 1,131 Plant 27 time clocks demolished 75 Plant 27 pump house demolished 4,300 Plant 27 rehabilitation demolished 44,622 Plant 107 motor bearings demolished 2,347 53,789 -58- Schedule Four Page 5 of 7 EAST VALLEY WATER DISTRICT CAPITAL ASSETS SCHEDULE OF INCREASES AND DECREASES - WATER YEAR ENDED JUNE 30, 2008 DECREASES (continued): CAPITAL ASSETS, BEING DEPRECIATED/AMORTIZED (continued): General Plant: Transportation and General Equipment: 1998 Buick Century $ 9,781 Used Ford dump truck 10,750 Water truck and trailer 17,877 38,408 Total decreases for capital assets, being depreciated/amortized 120,946 TOTAL DECREASES $ 120,946 -59- Schedule Four Page 6 of 7 EAST VALLEY WATER DISTRICT CAPITAL ASSETS SCHEDULE OF INCREASES AND DECREASES - SEWER YEAR ENDED JUNE 30, 2008 INCREASES: CAPITAL ASSETS, BEING DEPRECIATED/AMORTIZED: Collection Plant: Sewage Pipelines and Services Tract # 16014 $ 1,375,268 Tract # 17590 35,268 949’ of 8” permanent liner to sewer line 72,215 Dedicated sewers from City of Highland corporation yard 37,800 1,520,551 General Plant: Office Furniture and Equipment Sony tape drive 745 Latitude D830 laptop 890 New server 4,375 Backflow software 5,320 Auto cad software 4,048 EVWD website 3,171 Auto Tel payment processing machine 11,000 Historical photos – Board room 2,596 32,145 Transportation and General Equipment: Trench digger 547 Trailer mounted air compressor 7,922 40’ Storage container 5,843 Electrical hook up for 40’ storage container 2,688 2 Trench plates 2,332 22” Pipe tongs 1,266 Grabber power 485 20’ container (mobile mini) – Plant 27 1,766 Dump truck 52,938 2008 GMC 4500 truck 87,485 2008 3/4 ton GMC Sierra 12,228 2008 3/4 ton GMC Sierra 27,539 2008 3500H Chevy Silverado 14,143 2008 GMC Sierra 2500-HD 14,559 2008 GMC Sierra 2500-HD 14,559 -60- Schedule Four Page 7 of 7 EAST VALLEY WATER DISTRICT CAPITAL ASSETS SCHEDULE OF INCREASES AND DECREASES - SEWER YEAR ENDED JUNE 30, 2008 INCREASES (continued): CAPITAL ASSETS, BEING DEPRECIATED/AMORTIZED (continued): Transportation and General Equipment (continued): 2008 GMC Sierra 2500-HD $ 14,559 Particulate filter – truck #116 14,656 Particulate filter – truck #102 7,328 Weather Guard tool box for # 208 405 Weather Guard tool box for # 130 405 283,653 Total increases for capital assets, being depreciated/amortized 1,836,349 TOTAL INCREASES $ 1,836,349 DECREASES: CAPITAL ASSETS, NOT BEING DEPRECIATED/AMORTIZED: Construction in process: Net decrease in cost for various jobs $ 1,051,919 1,051,919 Total decreases for capital assets, not being depreciated/amortized 1,051,919 CAPITAL ASSETS, BEING DEPRECIATED/AMORTIZED: General Plant: Transportation and General Equipment: 1998 Buick Century 9,782 Used Ford dump truck 10,750 Water truck and trailer 17,877 38,409 Total decreases for capital assets, being depreciated/amortized 38,409 TOTAL DECREASES $ 1,090,328 -61- Schedule Five EAST VALLEY WATER DISTRICT UNREDEEMED BOND COUPONS - RETIRED DEBT JUNE 30, 2008 Bond Series Interest Coupons Payable Bond Principal Payable Total Amount Payable 1955 Water Revenue Bonds $ 829 $ - $ 829 1957 General Obligation Bonds 211 - 211 1966 Water Revenue Bonds - Division I 425 - 425 1966 Water Revenue Bonds - Division II 5,010 - 5,010 $ 6,475 $ - $ 6,475 -62- Schedule Six EAST VALLEY WATER DISTRICT CERTIFICATES OF PARTICIPATION - SERIES 2001 PRINCIPAL AND INTEREST REPAYMENT SCHEDULE JUNE 30, 2008 Due Date Principal Interest Rate Interest Total Payments 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 6-1-17 4.875 33,069 33,069 12-1-17 240,000 4.875 33,069 273,069 6-1-18 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 $ 7,405,000 $ 1,818,951 $ 9,223,951 -63- Schedule Seven EAST VALLEY WATER DISTRICT REFUNDING CERTIFICATES OF PARTICIPATION - SERIES 1996 PRINCIPAL AND INTEREST REPAYMENT SCHEDULE JUNE 30, 2008 Due Date Principal Interest Rate Interest Total Payments 12-1-08 $ 575,000 5.30% $ 31,842 $ 606,842 6-1-09 5.40 16,605 16,605 12-1-09 615,000 5.40 16,605 631,605 Totals $ 1,190,000 $ 65,052 $ 1,255,052 -64- Schedule Eight EAST VALLEY WATER DISTRICT 2004 PROJECT INSTALLMENT SALE NOTE PRINCIPAL AND INTEREST REPAYMENT SCHEDULE JUNE 30, 2008 Due Date Principal Interest Rate Interest Total Payments 8-31-08 $ 183,197 4.500% $ 198,577 $ 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 8-31-14 239,264 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 $ 8,825,667 $ 3,772,866 $ 12,598,533 -65- Schedule Nine EAST VALLEY WATER DISTRICT DEPARTMENT OF WATER RESOURCES CONSTRUCTION LOAN PRINCIPAL AND INTEREST REPAYMENT SCHEDULE JUNE 30, 2008 Due Date Principal Interest Rate Interest Total Payments 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 $ 152,147 $ - $ 152,147 -66- Schedule Ten EAST VALLEY WATER DISTRICT 2006 PROJECT INSTALLMENT SALE NOTE PRINCIPAL AND INTEREST REPAYMENT SCHEDULE JUNE 30, 2008 Due Date Principal Interest Rate Interest Total Payments 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 $ 5,628,438 $ 2,940,001 $ 8,568,439 -67- 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 – flexible spending account 3,300 Citizens Business Bank - checking 129,010 Citizens Business Bank – Arroyo Verde 38,108 Local Agency Investment Fund 3,082,855 Cash held for Certificate of Participation funds 813,318 Citizens Business Bank - Money Market 445,234 Citizens Business Bank - Money Market - Construction Fund 1,663,377 Total Cash Funds Available 6,176,952 Less cash restricted for: Certificate of Participation Funds 813,318 Customer deposits 1,611,821 Construction deposits 111,500 Construction fund 1,663,377 Arroyo Verde Assessment District 38,108 Total Restricted Cash 4,238,124 Unrestricted Cash $ 1,938,828 Investment in Debt Securities Investments consist of the following: Citizens Business Bank Investment Account $ 4,713,445 Citizens Business Bank Construction Fund 1,498,435 Total Investments 6,211,880 Less investments restricted for: Construction fund 1,498,435 $ 4,713,445 -68- Accounts Receivable, net - $1,532,029 Water and sewer accounts receivable at June 30, 2008 consisted of the following: Accounts receivable $ 1,535,685 Less: Allowance for uncollectible accounts (3,656) $ 1,532,029 Interest Receivable - $88,573 Interest receivable at June 30, 2008 consisted of the following: Local Agency Investment Fund $ 28,573 Investments in debt securities 55,560 Money Market Funds 3,275 COP Funds 1,165 $ 88,573 Other Receivables - $829,485 Other receivables at June 30, 2008 consisted of the following: City Creek Water Co. $ 28,583 Developers and Others 25,710 North Fork 380,525 Hazard Mitigation Grant 366,629 Arroyo Verde Assessment District 28,038 $ 829,485 Inventory - Average Cost - $1,020,709 The inventory at June 30, 2008 consisted of the following: Water pipe, fittings, valves, etc. $ 827,680 Meters 108,471 Treatment plant 72,915 Office supplies 4,120 Automotive parts 7,523 $ 1,020,709 Prepaid Expenses and Deposits - $190,829 Prepaid expenses and deposits at June 30, 2008 consisted of the following: Prepaid insurance $ 23,428 Miscellaneous expenses and deposits 167,401 $ 190,829 -69- NONCURRENT ASSETS A schedule of the changes in Capital Assets for water and sewer are shown in Schedule Three. A summary of the Capital Assets at June 30, 2008 is shown below: Water Sewer Total Capital assets, being depreciated/ amortized: Balances, July 1, 2007 $ 99,027,484 $ 24,309,797 $123,337,281 Add: 2007-2008 Additions and transfers from construction in progress 4,327,866 1,836,349 6,164,215 Less: Assets retired 120,946 38,409 159,355 103,234,404 26,107,737 129,342,141 Less: Accumulated depreciation 30,361,769 12,259,018 42,620,787 72,872,635 13,848,719 86,721,354 Capital assets, not being depreciated/ amortized: Balances, July 1, 2007 10,983,084 1,892,375 12,875,459 Add: 2007-2008 Additions 10,792,811 - 10,792,811 Less: Assets retired and transfers from construction in progress - 1,051,919 1,051,919 21,775,895 840,456 22,616,351 Total capital assets $ 94,648,530 $ 14,689,175 $109,337,705 Depreciation for the year amounted to $2,357,201 in the Water Department and $633,985 in the Sewer Department. Construction in progress, consisting of Utility Plant additions, which were incomplete at June 30, 2008, is shown below: Water Department Parcel Map 13511 $ 4,775 Tract 10302 (1,317) Cultural Center San Manuel Indians 68,482 New District Offices 8,432,848 Main replacement - Del Rosa, 6th to 9th 154,355 Tract 15114 5,911 Feasibility Study Thm 386,520 Tract 15650 400 Tract 14516 (2,616) Tract 16914 432,081 Tract 16636 272 Tract 16745 (679) Tract 15731 2,301 Santa Ana River discharge 158,129 Main replacement - Live Oak Rd 815 Plant 24 - design storm drain 22,595 -70- Water Department (continued) Tract 15960 $ 52,535 Tract 16963 1,389 Tract 16448 79 FEMA - North Fork 1,554,229 6th & Tippecanoe 2,540 New Treatment Plant 1,342,335 Plant 40 Rehabilitation 1,077,681 GIS System 123,827 14th St and Victoria 7,046 Tract 17793 17,596 Tract 17263 121,994 Pl28 - Pilot Demo Treatment Facility 13,599 24220 5th St - install system 13,357 Tract 17372 (506) Plant 152 & new property to the west 310,130 5th and Boulder (Greenspot Village) (29,500) Greenspot Village/ Marketplace 31,584 Boulder Ave 5th St Tract 17682 744 Tract 18199 113,276 Tract 17576 5,448 Greenspot water treatment plant 24,246 Tract 17668 - 36 lot subdivision 147,817 Emerton Elementary II 39,636 Plant 134 & EVWD Distribution 38,508 Extension of water and sewer lines (1,084) PM 17635 - water and sewer extension (111) Utility relocation - Pacific east of Victoria 52,772 Regional water supply and treatment 152,716 Tent Tract 18528 8 lots SFR 243 NE corner Highland and Palm 262 141 13,411 Sterling pipeline phase 2 1,222,658 Tract 18558 AMG Associates 92 Tract 18583 Centerstone Comm. 137 Lowes 5th - 30 freeway 39,482 PM 18011 Two SFR 145 CVS Pharmacy & Bakers Restaurant 49,947 PL151 Potential new well site 835,648 Harlan Lane pipeline replacement 7,957 Indians Phase 2 parking structure 922 Regency Center Greenspot Road 253 Integrated voice recognition system 43,203 Eastwood farms mutual water 32,969 NE Corner of Palm & Meines 335 Install new 8” mains 30,544 Solar challenge (4,071) Cypress, Palm to Church Avenue 572 Cypress, Central, Palm City High 328 7th, Sterling - City of Highland 2,680 E Highland drainage plan 207 Warm creek storm drain 541 Patton State Hospital master water meter 188 Accrued labor at 6/30/08 to various work orders 14,387 17,171,533 -71- Sewer Department PM 13511 $ 53 Tract 10302 597 Cultural Center San Manuel 3,666 Del Rosa/9th, Del Rosa/6th 231 Tract 15114 313 Tract 15650 79 Tract 14516 (814) Tract 16914 338,822 Tract 16745 (1,419) Tract 15731 (1,000) Tract 15960 123,780 Tract 17793 2,143 Tract 17263 96,238 Greenspot Village 232 Tract 17682 - Boulder Ave 5th St (18,968) Tract 18199 76,443 Tract 17576 (1,075) Tract 17667 - 36 lot subdivision 152,486 Sewer system management plan GAP Ana 40,052 Extension of water and sewer pipelines (364) Lowes - 5th Street & freeway 241 PM 18011 2SFR (495) 811,241 Total Construction in Progress $ 17,982,774 -72- DEFERRED CHARGES - $214,573 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 2007 - 2008 was as follows: Balance, July 1, 2007 $ 198,126 Less: 2007-2008 amortization (35,280) Balance, June 30, 2008 162,846 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 2007-2008 is as follows: Balance, July 1, 2007 54,403 Less: 2007-2008 amortization (2,676) Balance, June 30, 2008 51,727 Total Deferred Costs $ 214,573 LONG-TERM DEBT - $23,201,252 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 - $2,331,264 Trade accounts payable at June 30, 2008. Accounts Payable - Other $637,682 North Fork $ 297,884 Basin Water Technology Group 339,350 Others 448 $ 637,682 -73- Accrued Payroll and Benefits - $878,808 Accrued Payroll and Benefits $ 856,505 Accrued Pension 22,303 $ 878,808 Accrued payroll and benefits consist of accrued payroll, payroll taxes, deferred compensation, employee benefits, and pension. Customer Service Deposits - $1,611,821 Customers’ service deposits amounting to $1,611,821 were held by the District to secure payments of water tolls and sewer charges. Accrued Interest Payable - $264,795 Accrued interest payable as of June 30, 2008 is shown below: 1955 Water Revenue Bonds $ 829 1957 General Obligation Bonds 211 1966 Water Revenue Bonds 5,435 Certificates of Participation 33,066 2004 Installment Note 132,385 2006 Installment Note 92,869 Total $ 264,795 Deposits - Refundable - $111,500 Manhole and inspection fee deposits of $111,500 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 - $1,871,819 The current portion of long-term debt consists of the following: 2004 Installment Note $ 370,515 2006 Installment Note 199,859 COP Principal 1,295,000 DWR Arroyo Verde Construction Loan 3,381 Issue discounts (3,660) Issue premiums 6,724 $ 1,871,819 -74- WATER OPERATIONS The fiscal period ended June 30, 2008 was the fifty-fourth 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: 2007 - 2008 2006 - 2007 Month Billed Connections Revenue Billed Connections Revenue July 21,953 $ 1,405,436 22,182 $ 1,357,212 August 22,030 1,424,007 22,064 1,278,032 September 21,952 1,439,222 21,976 1,527,003 October 21,923 1,143,458 22,048 1,142,121 November 21,914 1,102,046 21,976 1,069,082 December 22,970 939,591 22,023 905,067 January 21,890 879,673 22,007 884,855 February 21,850 791,017 21,959 792,342 March 21,774 815,455 22,015 807,296 April 21,749 1,078,466 21,928 986,599 May 21,800 1,285,493 21,961 1,016,165 June 21,827 1,272,353 21,899 1,345,565 Totals $ 13,576,217 $ 13,111,339 The rate charged to customers for water consumption for the years end June 30, 2008 and 2007 was $1.20 and $1.08 per hundred cubic feet (HCF), respectively. -75- Monthly meter charges and installation charges in effect during the year were as follows: District Monthly Meter Charge Size of Service July to November December to June 5/8” $ 7.50 $ 8.40 3/4” 7.50 8.40 1” 14.00 15.70 1-1/2” 29.50 33.00 2” 42.50 47.60 3” 74.50 83.50 4” 124.00 139.00 6” 241.00 270.00 8” 362.00 405.00 Flat rate per month Size of Service Water Connection Charge 3/4” Service $ 5,401 1” Service 7,626 1-1/2” Service 15,614 2” Service 21,404 3” Service 43,469 4” Service 71,211 6” Service 136,117 8" Service 226,363 -76- SEWER OPERATIONS The fiscal period ended June 30, 2008 was the fifty-first 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: 2007 - 2008 2006 - 2007 Month Billed Connections Revenue Billed Connections Revenue July 19,264 $ 726,292 19,182 $ 712,343 August 19,265 730,826 19,188 685,717 September 19,220 746,750 19,190 780,845 October 19,237 668,848 19,234 665,255 November 19,251 692,827 19,225 682,570 December 19,137 693,550 19,212 651,245 January 19,143 699,187 19,227 659,164 February 19,079 665,493 19,191 627,290 March 19,079 661,172 19,221 629,132 April 19,044 719,977 19,173 662,026 May 19,137 748,473 19,219 652,965 June 19,115 751,665 19,245 731,048 Totals $ 8,505,060 $ 8,139,600 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: Total Customer Billing Payments to City 1980-81 $ 1,094,056 $ 638,906 1981-82 1,226,288 690,649 1982-83 1,567,722 996,613 1983-84 1,905,728 1,208,036 1984-85 1,915,433 1,349,565 1985-86 2,074,012 1,346,233 1986-87 2,112,391 1,357,062 1987-88 2,103,552 1,459,388 1988-89 2,302,316 1,522,914 1989-90 2,475,445 1,623,554 1990-91 2,769,747 1,681,608 1991-92 4,061,294 3,138,131 -77- Total Customer Billing Payments to City 1992-93 4,827,342 3,527,092 1993-94 4,985,784 3,661,494 1994-95 5,302,573 3,954,703 1995-96 5,427,970 4,023,657 1996-97 5,481,057 4,094,016 1997-98 5,445,921 4,072,840 1998-99 5,607,049 4,196,895 1999-00 5,798,700 4,338,956 2000-01 5,885,051 4,396,629 2001-02 5,991,709 4,495,040 2002-03 6,085,516 4,557,909 2003-04 6,622,588 4,771,339 2004-05 7,423,533 5,288,212 2005-06 7,733,908 5,473,390 2006-07 8,139,600 5,607,172 2007-08 8,505,060 5,561,831 Sewer charges in effect at June 30, 2008 were as follows: Sewer Service Rates: Residential Through June 30, 2008 $24.25 monthly West of City Creek $26.25 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