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Home My WebLink AboutAgenda Packet - EVWD Board of Directors - 11/24/20093654 HIGHLAND AVE., SUITE #12, HIGHLAND, CA BOARD MEETING November 24, 2009 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 2. Approval of Agenda CONSENT CALENDAR 3. Accounts Payable Disbursements: Accounts Payable Checks # 221884 through # 222058 which were distributed during the period of November 10, 2009 through November 18, 2009, in the amount of $420,941.39 and Payroll and benefit contributions for the period ended November 18, 2009 and included checks and direct deposits, in the amount of $269,911.59. Total Disbursement for the period $690,852.98 4. General Manager's fees and expenses NEW BUSINESS 5. Resolution 2009.22 — A Resolution of the Board of Directors of the East Valley Water District establishing policies for its compensation, reimbursement, ethics and sexual harassment training, and insurance coverage 6. Letter to the Board and presentation from Aaron Hodgdon 7. Resolution 2009.23 — A Resolution of the Board of Directors of the East Valley Water District authorizing sale of surplus property 8. Discussion and possible action regarding ACWA's officer elections and the designated delegate to vote on behalf of the East Valley Water District 9. Discussion and possible action regarding the Districts audited financial statements for 2008/2009 10. Discussion and possible action regarding claim for damages from Za'kee Saleem at 2266 Bradford Ave. #124, Highland REPORTS 11. General Manager / Staff Reports 12. Consultant Reports 13. Committee Reports a. Legislative (Standing) b. Budget (Standing) c. Public Outreach (Standing) d. Audit (Ad -Hoc) e. Headquarters (Ad -Hoc) f. Policy Committee (Ad -Hoc) 14. Oral comments from Board of Directors CLOSED SESSION 15. CONFERENCE WITH REAL PROPERTY NEGOTIATOR [Government Code Section 54956.81 Property: Party with whom the District will negotiate: Party who will be negotiating on behalf of the District: Under Negotiation: ADJOURN 9.74 +/- Acres of developed and Associated parcel, South of Highland Ave.. East of Victoria, APN (s): 1191-251-02,1191-251-05 San Bernardino County, State of California US Kuil Inc. Price and Terms of Payment Pursuant to Government Code Section 54954.2(a), any request for a disability - related modification c: 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 hou=; prior to said meeting. 2 Ea.stValley [milk plater District Board Memorandum From: Brian W. Tompkins / Chief Financial Officer Subject: Disbursements. Recommendation: Approve the attached list of payroll issued during the through November 18, 2009. Background: ME accounts payable checks and period November 10, 2009 Date: NOVEMBER 24, 2009 Accounts payable checks are shown on the attached listing and include numbers 221884 to 222058 for A total of $4 20,941.39. The source of funds for this amount is as follows: Unrestricted Funds $420,941.39 Payroll and benefit contributions paid for this period totaled $269,911.59 Total disbursements $690,852.98. _me�r Time: 02:04PM User: KATHY rlke-L Nk, V vpc VO 221935 VC 11/17/2009 073040 VO 22210 222059 CK 11/10/2009 073709 V O 1 12vv 222060 073751 073751 073806 222061 073737 222062 073789 073790 073791 073792 073793 073794 073795 073796 073798 222063 073342 222064 073732 222065 073799 222066 073782 073783 222067 073706 222068 073757 073779 CK VO VO VO CK VO CK VO VO VO VO VO VO VO VO VO CK VO 11/10/2009 61000 79100 61000 11/10/2009 71105 11/10/2009 53100 53100 53100 53100 53100 53100 53100 53100 53100 11/10/2009 22210 CK 11/10/2009 VO 71015 CK 11/10/2009 VO 73100 CK 11/10/2009 VO 72500 VO 72500 CK VO CK VO 11/10/2009 71615 11/10/2009 62000 62000 East Valley Water District EVwn Check Register . Standard ;d Name ProlectiD Project Description LIN031 LINCK -NINA Customer Refunds ADP002 ADP Payroll Processing Service -A AIR005 AIRGAS WEST Materials & Supplies -Oper. Safety Equipment Materials & Supplies -Oper. AME001 AMERICAN EXPRESS Meals, Lodging, Travel AME019 AMERIPRIDE UNIFORM SERVICES Uniforms Uniforms Uniforms Uniforms Uniforms Uniforms Uniforms Uniforms Uniforms AND045 ANDRDE -JOSE Customer Refunds ATT007 AT &T Telephone AUD001 COUNTY TREASURER /CONTROLLER Audit/Accounting Fees BAR074 BARRY'S SECURITY SERVICES, INC Security Services Security Services BIR001 BIRD REFRIGERATION CO.,INC. Building Repairs / Maintenan BRIO09 BRITHINEE ELECTRIC Maintenance Maintenance Page. 1 of 1e Report: APCHK.rp Comcamr. EvW[ Discount OrigDocAmt DrC 91.50 -91.50 D 573.14 573.14 D 237.76 94.87 D 69.22 D 73.67 D 527.20 527.20 D 1,505.60 27.89 D 347.25 D 27.89 D 359.02 D 27.89 D 311.49 D 27.89 D 320.66 D 55.62 D 26.07 26.07 D 25.52 25.52 D ra� rtt tt E 3,199.33 1,588.13 D 1,611.20 D 1,585.00 1,585.00 D 4,146.36 2,036.' 2,110.24 D Date: Wednesday, November 18, 20 East Valley Water District Page: 2 of 16 Time: 02:04PM EVWD Check Register - Standard Report: APCHK.rpt User: KATHY Company: EVWD Check Nbr Type Date Id Name ProiectlD Proiect Description Discount OrigDocAmt DrCr 222069 CK 11/10/2009 CAM004 CAMP DRESSER & MCKEE INC. 40,501.07 073784 VO 11200 Construction in Progress WA002292 Plant 134 Upgrade 40,501.07 D 222070 CK 11/10/2009 CAO003 CAO- VICKIE 78.34 073357 VO 22210 Customer Refunds 9.27 D 073645 VO 22210 Customer Refunds 69.07 D 222071 CK 11110/2009 CEL003 CELTS- CONSUELO 34.81 073405 VO 22210 Customer Refunds 34.81 D 222072 CK 11/10/2009 CHA094 CHAN -CHAN 89.05 073407 VO 22210 Customer Refunds 89.05 D 222073 CK 11/10/2009 CHE007 CHEM -TECH INTERNATIONAL INC 5,347.72 073759 VO 65100 Treatment Chemicals 1,778.09 D 073780 VO 65100 Treatment Chemicals 3,569.63 D 222074 CK 11/10/2009 CIT018 CITISTREET 7,215.50 073800 VO 23160 Deferred Compensation 7,215.50 D 222075 CK 11/10/2009 CLA003 CLA -VAL CO 315.00 073758 VO 62000 Maintenance 315.00 D 222076 CK 11/10/2009 CMU001 CMUA 75.00 073749 VO 77100 Education /Seminars /Confere 75.00 D 222077 CK 11/10/2009 CRU025 CRUZ - CARLOS 21.29 073328 VO 22210 Customer Refunds 21.29 D 222078 CK 11/10/2009 DEL045 DELTACARE USA 981.46 073733 VO 23188 Dentallnsurance -PMI 891.01 D 073733 VO 76500 Health /Dental Insurance 90.45 D 222079 CK 11/10/2009 DIR004 DIRECTV 35.00 073734 VO 71010 Utilities 35.00 D 222080 CK 11/10/2009 EAS003 East Valley Water District 275.00 073801 VO 23195 FSA Withholding 275.00 D 222081 CK 11/10/2009 EAS003 East Valley Water District 970.50 073802 VO 23195 FSA Withholding 970.50 D 222082 CK 11/10/2009 ELI007 ELICH -SARA 50.69 073358 VO 22210 Customer Refunds 36.54 D ""`. " "`°°" °'Y, rwvei i6Cf 1o, ``' East Valley Water District Page: 3 Of " Time: 02:04PM FVWn r:hamf Rnnie}nr _ R#nnr12rrl Report: APCHK.rp User. KATHY Company DAV Check iNIbr Tyne Date id Name ProiectiD Proiect Description Discount OriquocAmt DrC 073359 VO 22210 Customer Refunds 14.15 D 222083 CK 11/10/2009 ENG004 ENGLE -CINDY 82.15 073360 VO 22210 Customer Refunds 82.15 D 222084 CK i1i10 /2009 EXP002 EXPERiAN 77.00 073785 VO 66200 Credit Reporting Fee 77.00 D 222085 CK 11/10/2009 FA1002 FAIRVIEW FORD SALES,INC 44.73 073718 VO 71720 Vehicle Parts /Supply 44.73 D 222086 CK 11/10/2009 FAS002 FASTENAL COMPANY 95.48 073752 VO 79100 Safety Equipment 95.48 D 222087 CK 11/10/2009 FIE009 SERVICES, INC -FIELD ASSET 76.53 073330 VO 22210 Customer Refunds 51.17 D 073343 VO 22210 Customer Refunds 25.36 D 222088 CK 11/10/2009 FIR008 FIRST AMERICAN CORELOGIC, INC 315.00 073812 VO 71405 Subscription Info Services 315.00 D 222089 CK 11/10/2009 GAB001 GABRIEL EQUIPMENT CO 307.94 073726 VO 79100 Safety Equipment 307.94 D 222090 CK 11/10/2009 GAL038 GALVAN -E NICHOLAS 36.45 073344 VO 22210 Customer Refunds 36.45 D 222091 CK 11/10/2009 GAR119 GARCIA- MARCELLO 67.28 073331 VO 22210 Customer Refunds 67.28 D 222092 CK 11/10/2009 GFR001 GFR ENTERPRISE 218.66 073349 VO 22210 Customer Refunds 113.33 D 073350 VO 22210 Customer Refunds 105.33 D 222093 CK 11/10/2009 HAA001 HAAKER EQUIPMENT COMPANY 219.47 073809 VO 71720 Vehicle Parts /Supply 219.47 D 222094 CK 11/10/2009 HAR009 HARPER AND ASSOCIATES, INC 1,880.00 073760 VO 11200 Construction in Progress WA002489 PLANT 133 DEMOLITION 1,880.00 D 222095 CK 11/10/2009 HAR077 HARLAN -MARY ELLEN 44.92 073250 VO 22210 Customer Refunds 44.92 D 222096 CK 11/1012009 HAR081 HARLAN -MARY 84.16 073361 VO 22210 Customer Refunds 84.16 D Date: Wednesday, November 18, 20 East Valley Water District Page: 4 of 16 Time: 02:04PM EVWD Check Register - Standard Report: APCHK.rpt User. KATHY Company: EVWD Check Nbr Type Date Id Name ProiectlD Project Description Discount OrigDocAmt DrCr 222097 CK 1111012009 HDS001 HD SUPPLY WATERWORKS, LTD 5,916.75 073728 VO 14310 Inventory- Constr. Materials 5,916.75 D 222098 CK 11/10/2009 HIG023 CARWASH— HIGHLAND HAND 379.75 073777 VO 71725 Vehicle Repairs /Maintenance 379.75 D 222099 CK 11/10/2009 IMB002 IMBERT —FRANK 141.54 073410 VO 22210 Customer Refunds 70.77 D 073411 VO 22210 Customer Refunds 70.77 D 222100 CK 11/10/2009 INCO01 INCONTACT 2.41 073807 VO 71015 Telephone 2.41 D 222101 ZC 11/10/2009 IND005 INDUSTRIAL RUBBER & SUPPLY 0.00 073730 AD 61000 Materials & Supplies -Oper. - 287.80 C 073705 VO 61000 Materials & Supplies -Oper. 287.80 D 222102 CK 11110/2009 INF005 INFOSEND, INC 12,644.99 073750 VO 66000 Postage - Billing 9,521.47 D 073750 VO 66050 Outsource Billing 3,123.52 D 222103 CK 11/10/2009 INL005 INLAND WATER WORKS SUPPLY CO 1,647.16 073729 VO 61000 Materials & Supplies -Oper. -13.43 671.44 D 073753 VO 61000 Materials & Supplies -Oper. -13.52 675.80 D 073810 VO 61000 Materials & Supplies -Oper. -6.67 333.54 D 222104 CK 11/10/2009 JOH001 JOHNSON MACHINERY CO 217.87 073754 VO 71755 Equipment Repairs /Maintena 179.48 D 073755 VO 71755 Equipment Repairs /Maintena 38.39 D 222105 CK 11/10/2009 KAT001 KATZ LANDSCAPING 6,728.00 073738 VO 71700 Grounds Maintenance Contrs 6,728.00 D 222106 CK 11/10/2009 KLH001 K & L HARDWARE 144.52 073773 AD 61000 Materials & Supplies -Oyer. -7.52 C 073761 VO 61010 Materials & Supplies - Maint. 24.93 D 073762 VO 61000 Materials & Supplies -Oper. 15.21 D 073763 VO 61000 Materials & Supplies -Oper. 27.18 D 073764 VO 71727 Garage Supplies /Small Toole 19.56 D 073765 VO 71755 Equipment Repairs /Maintena 6.51 D 073766 VO 61000 Materials & Supplies -Oper. -13.10 35.88 D 073766 VO 71727 Garage Supplies /Small Tools -13.10 35.87 D East Valley Water District Page* Time: 02:04PM EVWD Check Resister - Standard Report: APCHK.ri User KATHY Company: DAN Check NLr _ n _g+e Id Name PrviEC•u!D Project Description DISCOUnt VriODOC m r 222107 CK 11/10/2009 LAW003 LAWSON PRODUCTS,INC 872.32 0 73707 VO 51000 Materials & Supplies -Oper. -3.06 346.74 D 073708 VO 61000 Materials & Supplies -Oper. 4.75 533.39 D 222408 v'% ,, „ ^,^ "^ i u Ivlcvvo .. mAG009 iviAGAL i' -L jiS 69. 073362 VQ 22210 Customer Refunds 69.88 D 222109 CK 11 ill u/2009 MAR127 MARABLE—MIKE 91.34 073345 VO 22210 Customer Refunds 54.80 D 073652 VO 22210 Customer Refunds 36.54 D 222110 CK 11/10/2009 MED025 MEDINA- GILBERTO 167.82 073413 VO 22210 Customer Refunds 167.82 D 222111 CK 11/10/2009 MER020 MERRIAM II–WILLIAM 39.27 073346 VO 22210 Customer Refunds 39.27 D 222112 CK 11/10/2009 MOR081 SERV– MORTGAGE CONTRACTING 45.83 073467 VO 22210 Customer Refunds 45.83 D 222113 CK 11/10/2009 NOB003 NOBEL SYSTEMS, INC. 5,000.00 073739 VO 11200 Construction in Progress WA002374 GIS SYSTEM 5,000.00 D 222114 CK 11/10/2009 NOV007 NOVAK– RICHARD 64.68 073363 VO 22210 Customer Refunds 64.68 D 222115 CK 11/10/2009 OLF001 OLFERT –LONN DALE 25.79 073415 VO 22210 Customer Refunds 25.79 D 222116 CK 11/10/2009 PAR061 PARKER –MARYA 4.36 073420 VO 22210 Customer Refunds 4.36 D 222117 CK 11/10/2009 PEA005 PEARPOINT,INC 130.80 073811 VO 71720 Vehicle Parts /Supply 130.80 D 222118 CK 11/1012009 PER007 PERFORMANCE METERS INC 430.56 073778 VO 61000 Materials & Supplies -Oper. 430.56 D 222119 CK 11/10/2009 PET025 PETE'S ROAD SERVICE INC 1,275.26 073710 AD 71720 Vehicle Parts /Supply - 120.00 C 073711 VO 71755 Equipment Repairs /Maintena 1,395.26 D 222120 CK 11/10/2009 PRE025 PREEDANON—C- HRIcTIKIE K 6.0_.83 073656 VO 22210 Customer Refunds 60.83 D Date: Wednesday, November 18, 20 East Valley Water District Time: 02:04PM EVWD Check Register - Standard User KATHY Check Nbr Type Date Id Name ProjectlD Project Description 222121 CK 11/10/2009 REA019 SOLUTION -REAL HOME 073364 VO 22210 Customer Refunds 222122 CK 11/10/2009 REN012 RENZY- ANTHONY W 073347 VO 22210 Customer Refunds 222123 CK 11/10/2009 R00011 CONSTRUCTION -ROCK STRUCTURES 073365 VO 22210 Customer Refunds 073366 VO 22210 Customer Refunds 222124 CK 11/10/2009 SAF001 SAFETY KLEEN ACCOUNTS PAYABLE 073767 VO 61000 Materials & Supplies -Oper. 222125 CK 11110/2009 SAN007 SAN BDNO PUBLIC EMPLOYEES ASSN 073803 VO 23170 Union Dues 222126 CK 11/10/2009 SAN013.1 JAMES STEVEN SANTINI 073740 VO 11200 Construction in Progress WA002477 SR HOUSING HIGH AVE & CENTRAL 073740 VO 11200 Construction in Progress WA002480 HIGH SCHOOL #8 OLD CURTIS ELEM 222127 CK 11/10/2009 SAN015 SAN BDNO CO FIRE DEPT 073781 VO 77550 Regulatory Compliance 222128 CK 11/10/2009 SHE014 SHERIFF'S COURT SERVICES 073804 VO 23190 Miscellaneous Deductions 222129 CK 11/10/2009 SH1006 SHIDLER DEVELOPMENT INC 073348 VO 22210 Customer Refunds 222130 CK 11/10/2009 SKO001 SKOLNICK- CHERYL & DAVID 073332 VO 22210 Customer Refunds 222131 CK 11/10/2009 SM1057 SMITH -JOHN 073367 VO 22210 Customer Refunds 222132 CK 11/10/2009 S00004 SO CAL EDISON COMPANY 073741 VO 71010 Utilities 073808 VO 71010 Utilities 222133 CK 11/10/2009 SOL019 SOLANO -ALEX 073333 VO 22210 Customer Refunds 222134 CK 11/10/2009 SPS001 SPSSM INVESTMENTS LP 073422 VO 22210 Customer Refunds Page: 6 of 16 Report: APCHK.rpt Company: EVWD Discount OrigDocAmt DrCt 31.70 31.70 D 23.63 23.63 D 1,680.47 939.73 D 740.74 D 877.89 877.89 D 721.61 721.61 D 4,680.00 4,420.00 D 260.00 D 457.00 457.00 D 416.12 416.12 D 45.52 45.52 D 46.32 46.32 D 43.44 43.44 D 1,723.84 44.38 D 1,679.46 D 57.24 57.24 D 4.62 4.62 D UUEU. vveanesaay, Novernper, x, East Valley Water District Page: 7 o 16 Time: 02:04PM W EVD Cha_c_k Fdcnic4ar _ Standard Report: gPCHK.rot user: KATHY Company: cumin Check Nbr R122 pate Id Name ProiectiD Protect Description Discount OrigDocArnt D =C 222135 CK 1111012009 STA055 STATE DISBURSEMENT UNIT 902.00 073805 VO 23190 Miscellaneous Deductions 902.00 D 222136 CK 11/1012009 SUP005 SUPERIOR AUTOMOTIVE WAREHOUSE 110.82 073776 AD 71720 Vehicle Pads /Supply 43.50 C 073719 VO 71755 Equipment Repairs /Maintena 45.14 D 073720 VO 71720 Vehicle Parts /Supply 12.40 D 0I "I VO 71755 Equipment Repairs /Maintena 87.00 D 073775 VO 71755 Equipment Repairs /Maintena 9.78 D 222137 CK 11/10/2009 TEL011 TELEPACIFIC COMMUNICATIONS 1,713.60 073735 VO 71015 Telephone 1,314.60 D 073735 VO 71405 Subscription Info Services 399.00 D 222138 ZC 11/10/2009 TNG001 AUCTION —TNG 0.00 073643 AD 22210 Customer Refunds -28.10 C 073110 VO 22210 Customer Refunds 28.10 D 222139 CK 11/10/2009 TNG002 TNG PROPERTIES LP 28.10 073731 VO 22210 Customer Refunds 28.10 D 222140 CK 11/10/2009 TRIO18 TRI- COUNTY PUMP COMPANY 3,510.00 073768 VO 62000 Maintenance 1,755.00 D 073769 VO 62000 Maintenance 1,755.00 D 222141 CK 11/10/2009 TUC006 ESTATE — TUCKER REAL 73.21 073424 VO 22210 Customer Refunds 73.21 D 222142 CK 11/10/2009 UND002 UNDERGROUND SERVICE ALERT 106.50 073766 VO 71400 Memberships and Dues 106.50 D 222143 CK 11/1012009 UN1002 UNITED PARCEL SERVICE 18.00 073704 VO 71505 Postage 18.00 D 222144 CK 11!1012009 UN1021 UNITED SITE SERVICES OF CA 232.72 073787 VO 62000 Maintenance 89.06 D 073766 VO 62000 Maintenance 143.66 D 222145 CK 11/10/2009 USB003 U.S. BANK 26,879.22 073714 VO 51605 Directors Expenses 1,255.18 D 073714 VO 71105 Meals, Lodging, Travel 3,127.70 D 073714 VO 71305 CommunicationsEquip Rep /l% 25.75 D 073714 VO 7. 1 Ana $ - -- - -: •.0 ;. ,':nso �ef.„^,8S 06.34 D 073714 VO 71500 Office Supplies 218.25 D Date: W Wednesday, November 18, 20 P Check Nbr Type Date 073714 Vol 71560 073714 VO 71570 073714 VO 71725 073714 VO 71755 073714 VO 71756 073714 VO 77100 073714 VO 77300 222146 CK 073727 VO 222147 CK 073770 VO 222148 CK 073736 VO 222149 CK 073813 VO 222150 CK 073756 VO 073771 VO 073772 VO 222151 CK 073815 VO 222152 CK 073927 VO 222153 CK 073928 VO 222154 CK 073484 VO 222155 CK 073814 VO 073814 VO 222156 CK 073956 VO 222157 CK 11/10/2009 71705 11/10/2009 61000 11/10/2009 77400 Id Name ProiectlD Protect Description Computer System MaintCont Computer Supplies Vehicle Repairs /Maintenance Equipment Repairs /Maintena Equipment Fuel and Oil Education /Seminars /Confere Employee Programs VIL025 WHOLESALE, L- VILLAGE NURSERIES Grounds Repairs / Maintenanc VUL001 VULCAN MATERIALS COMPANY Materials & Supplies -Oper. WIL005 WILLIAMS-ALLEN Licenses and Certifications 11/10/2009 WIR003 WIRELESS WATCHDOG, LLC 71305 CommunicationsEquip Rep /A 11/10/2009 ZEE001 ZEE MEDICAL INC. 79100 Safety Equipment 71545 First Aid Suppllies 71545 First Aid Suppllies 11/12/2009 SPE015 SPECIAL DISTRICT RISK MGMT 76100 General Insurance 11/17/2009 INL018 INLAND EMPIRE TOUR & TRANS 77250 Education Information 11/17/2009 KEL021 Chuck Kelley 77250 Education Information 11/18/2009 ABS002 MANAGEMENT - ABSOLUTE 22210 Customer Refunds 11/18/2009 ACW003 ACWA HEALTH BENEFITS AUTHORITY 23186 Dentallnsurance -ASC 76500 Health /Dentallnsurance 11/18/2009 ADP002 ADP 71200 Payroll Processing Service -A 11/18/2009 AIR005 AIRGAS WEST Discount OrigDocAmt DrCr 176.65 D 1,085.69 D 66.47 D 84.82 D 14,012.27 D 5,518.95 D 1,221.15 D 360.75 360.75 D 375.77 375.77 D 105.00 105.00 D 252.00 252.00 D 177.38 74.72 D 28.59 D 74.07 D 1,719.73 1,719.73 D 683.00 683.00 D 50.00 50.00 D 40.93 40.93 D 4,776.02 4,166.52 D 609.50 D 552.15 552.15 D 73.67 222146 CK 073727 VO 222147 CK 073770 VO 222148 CK 073736 VO 222149 CK 073813 VO 222150 CK 073756 VO 073771 VO 073772 VO 222151 CK 073815 VO 222152 CK 073927 VO 222153 CK 073928 VO 222154 CK 073484 VO 222155 CK 073814 VO 073814 VO 222156 CK 073956 VO 222157 CK 11/10/2009 71705 11/10/2009 61000 11/10/2009 77400 Id Name ProiectlD Protect Description Computer System MaintCont Computer Supplies Vehicle Repairs /Maintenance Equipment Repairs /Maintena Equipment Fuel and Oil Education /Seminars /Confere Employee Programs VIL025 WHOLESALE, L- VILLAGE NURSERIES Grounds Repairs / Maintenanc VUL001 VULCAN MATERIALS COMPANY Materials & Supplies -Oper. WIL005 WILLIAMS-ALLEN Licenses and Certifications 11/10/2009 WIR003 WIRELESS WATCHDOG, LLC 71305 CommunicationsEquip Rep /A 11/10/2009 ZEE001 ZEE MEDICAL INC. 79100 Safety Equipment 71545 First Aid Suppllies 71545 First Aid Suppllies 11/12/2009 SPE015 SPECIAL DISTRICT RISK MGMT 76100 General Insurance 11/17/2009 INL018 INLAND EMPIRE TOUR & TRANS 77250 Education Information 11/17/2009 KEL021 Chuck Kelley 77250 Education Information 11/18/2009 ABS002 MANAGEMENT - ABSOLUTE 22210 Customer Refunds 11/18/2009 ACW003 ACWA HEALTH BENEFITS AUTHORITY 23186 Dentallnsurance -ASC 76500 Health /Dentallnsurance 11/18/2009 ADP002 ADP 71200 Payroll Processing Service -A 11/18/2009 AIR005 AIRGAS WEST Discount OrigDocAmt DrCr 176.65 D 1,085.69 D 66.47 D 84.82 D 14,012.27 D 5,518.95 D 1,221.15 D 360.75 360.75 D 375.77 375.77 D 105.00 105.00 D 252.00 252.00 D 177.38 74.72 D 28.59 D 74.07 D 1,719.73 1,719.73 D 683.00 683.00 D 50.00 50.00 D 40.93 40.93 D 4,776.02 4,166.52 D 609.50 D 552.15 552.15 D 73.67 222149 CK 073813 VO 222150 CK 073756 VO 073771 VO 073772 VO 222151 CK 073815 VO 222152 CK 073927 VO 222153 CK 073928 VO 222154 CK 073484 VO 222155 CK 073814 VO 073814 VO 222156 CK 073956 VO 222157 CK 11/10/2009 71705 11/10/2009 61000 11/10/2009 77400 Id Name ProiectlD Protect Description Computer System MaintCont Computer Supplies Vehicle Repairs /Maintenance Equipment Repairs /Maintena Equipment Fuel and Oil Education /Seminars /Confere Employee Programs VIL025 WHOLESALE, L- VILLAGE NURSERIES Grounds Repairs / Maintenanc VUL001 VULCAN MATERIALS COMPANY Materials & Supplies -Oper. WIL005 WILLIAMS-ALLEN Licenses and Certifications 11/10/2009 WIR003 WIRELESS WATCHDOG, LLC 71305 CommunicationsEquip Rep /A 11/10/2009 ZEE001 ZEE MEDICAL INC. 79100 Safety Equipment 71545 First Aid Suppllies 71545 First Aid Suppllies 11/12/2009 SPE015 SPECIAL DISTRICT RISK MGMT 76100 General Insurance 11/17/2009 INL018 INLAND EMPIRE TOUR & TRANS 77250 Education Information 11/17/2009 KEL021 Chuck Kelley 77250 Education Information 11/18/2009 ABS002 MANAGEMENT - ABSOLUTE 22210 Customer Refunds 11/18/2009 ACW003 ACWA HEALTH BENEFITS AUTHORITY 23186 Dentallnsurance -ASC 76500 Health /Dentallnsurance 11/18/2009 ADP002 ADP 71200 Payroll Processing Service -A 11/18/2009 AIR005 AIRGAS WEST Discount OrigDocAmt DrCr 176.65 D 1,085.69 D 66.47 D 84.82 D 14,012.27 D 5,518.95 D 1,221.15 D 360.75 360.75 D 375.77 375.77 D 105.00 105.00 D 252.00 252.00 D 177.38 74.72 D 28.59 D 74.07 D 1,719.73 1,719.73 D 683.00 683.00 D 50.00 50.00 D 40.93 40.93 D 4,776.02 4,166.52 D 609.50 D 552.15 552.15 D 73.67 222153 CK 073928 VO 222154 CK 073484 VO 222155 CK 073814 VO 073814 VO 222156 CK 073956 VO 222157 CK 11/10/2009 71705 11/10/2009 61000 11/10/2009 77400 Id Name ProiectlD Protect Description Computer System MaintCont Computer Supplies Vehicle Repairs /Maintenance Equipment Repairs /Maintena Equipment Fuel and Oil Education /Seminars /Confere Employee Programs VIL025 WHOLESALE, L- VILLAGE NURSERIES Grounds Repairs / Maintenanc VUL001 VULCAN MATERIALS COMPANY Materials & Supplies -Oper. WIL005 WILLIAMS-ALLEN Licenses and Certifications 11/10/2009 WIR003 WIRELESS WATCHDOG, LLC 71305 CommunicationsEquip Rep /A 11/10/2009 ZEE001 ZEE MEDICAL INC. 79100 Safety Equipment 71545 First Aid Suppllies 71545 First Aid Suppllies 11/12/2009 SPE015 SPECIAL DISTRICT RISK MGMT 76100 General Insurance 11/17/2009 INL018 INLAND EMPIRE TOUR & TRANS 77250 Education Information 11/17/2009 KEL021 Chuck Kelley 77250 Education Information 11/18/2009 ABS002 MANAGEMENT - ABSOLUTE 22210 Customer Refunds 11/18/2009 ACW003 ACWA HEALTH BENEFITS AUTHORITY 23186 Dentallnsurance -ASC 76500 Health /Dentallnsurance 11/18/2009 ADP002 ADP 71200 Payroll Processing Service -A 11/18/2009 AIR005 AIRGAS WEST Discount OrigDocAmt DrCr 176.65 D 1,085.69 D 66.47 D 84.82 D 14,012.27 D 5,518.95 D 1,221.15 D 360.75 360.75 D 375.77 375.77 D 105.00 105.00 D 252.00 252.00 D 177.38 74.72 D 28.59 D 74.07 D 1,719.73 1,719.73 D 683.00 683.00 D 50.00 50.00 D 40.93 40.93 D 4,776.02 4,166.52 D 609.50 D 552.15 552.15 D 73.67 222157 CK 11/10/2009 71705 11/10/2009 61000 11/10/2009 77400 Id Name ProiectlD Protect Description Computer System MaintCont Computer Supplies Vehicle Repairs /Maintenance Equipment Repairs /Maintena Equipment Fuel and Oil Education /Seminars /Confere Employee Programs VIL025 WHOLESALE, L- VILLAGE NURSERIES Grounds Repairs / Maintenanc VUL001 VULCAN MATERIALS COMPANY Materials & Supplies -Oper. WIL005 WILLIAMS-ALLEN Licenses and Certifications 11/10/2009 WIR003 WIRELESS WATCHDOG, LLC 71305 CommunicationsEquip Rep /A 11/10/2009 ZEE001 ZEE MEDICAL INC. 79100 Safety Equipment 71545 First Aid Suppllies 71545 First Aid Suppllies 11/12/2009 SPE015 SPECIAL DISTRICT RISK MGMT 76100 General Insurance 11/17/2009 INL018 INLAND EMPIRE TOUR & TRANS 77250 Education Information 11/17/2009 KEL021 Chuck Kelley 77250 Education Information 11/18/2009 ABS002 MANAGEMENT - ABSOLUTE 22210 Customer Refunds 11/18/2009 ACW003 ACWA HEALTH BENEFITS AUTHORITY 23186 Dentallnsurance -ASC 76500 Health /Dentallnsurance 11/18/2009 ADP002 ADP 71200 Payroll Processing Service -A 11/18/2009 AIR005 AIRGAS WEST Discount OrigDocAmt DrCr 176.65 D 1,085.69 D 66.47 D 84.82 D 14,012.27 D 5,518.95 D 1,221.15 D 360.75 360.75 D 375.77 375.77 D 105.00 105.00 D 252.00 252.00 D 177.38 74.72 D 28.59 D 74.07 D 1,719.73 1,719.73 D 683.00 683.00 D 50.00 50.00 D 40.93 40.93 D 4,776.02 4,166.52 D 609.50 D 552.15 552.15 D 73.67 Discount OrigDocAmt DrCr 176.65 D 1,085.69 D 66.47 D 84.82 D 14,012.27 D 5,518.95 D 1,221.15 D 360.75 360.75 D 375.77 375.77 D 105.00 105.00 D 252.00 252.00 D 177.38 74.72 D 28.59 D 74.07 D 1,719.73 1,719.73 D 683.00 683.00 D 50.00 50.00 D 40.93 40.93 D 4,776.02 4,166.52 D 609.50 D 552.15 552.15 D 73.67 360.75 360.75 D 375.77 375.77 D 105.00 105.00 D 252.00 252.00 D 177.38 74.72 D 28.59 D 74.07 D 1,719.73 1,719.73 D 683.00 683.00 D 50.00 50.00 D 40.93 40.93 D 4,776.02 4,166.52 D 609.50 D 552.15 552.15 D 73.67 East Valley Water District Page: HK "` Time: 02:04PM EVWD Check Reaister - Standard Report: APCHKrpi riser: KATHY Company: EVWC Check Nhr Tim flare Id game PrvjeCtiD Project Description DISCOUnt Oriq DOCAmt DrC 073929 VO 61000 Materials & Supplies -Oper. 73.67 D 222158 CK 11/18/2009 ALV052 ALVAREZ -JUAN 60.00 073543 VO 22210 Customer Refunds 60.00 D 222159 CK 11;18!2009 AMBCCS ESTATE -AMBC REAL 79.04 073441 VO 22210 Customer Refunds 79.04 D 222160 CK 11/18/2009 AME004 AMERICAN PRIDE PRINTING 661.44 073911 VO 71575 Forms, Bills & Checks 661.44 D 222161 CK 11/18/2009 ASS009 PBAMERICA, INC 2,170.00 073857 VO 13760 Other AIR -North Fork 1,085.00 D 073857 VO 61010 Materials & Supplies - Maint. 1,085.00 D 222162 CK 11118/2009 AUT010 AUTO UPHOLSTERY INC. 127.25 073874 VO 71720 Vehicle Parts /Supply 127.25 D 222163 CK 11/18/2009 BAR074 BARRY'S SECURITY SERVICES, INC 3,166.55 073892 VO 72500 Security Services 1,569.92 D 073893 VO 72500 Security Services 1,596.63 D 222164 CK 11/18/2009 BAT002 BATTEEN -JOHN W 200.00 073967 VO 71705 Grounds Repairs /Maintenanc 200.00 D 222165 CK 11/18/2009 BEV003 BEVERLY - SANDRA 19.64 073465 VO 22210 Customer Refunds 19.64 D 222166 CK 11/18/2009 BIR001 BIRD REFRIGERATION CO.,INC. 300.00 073876 VO 71615 Building Repairs / Maintenan, 300.00 D 222167 CK 11118/2009 BUR049 BURKE -DAVID 1215 073442 VO 22210 Customer Refunds 12.15 D 222168 CK 11/18/2009 CAM004 CAMP DRESSER & MCKEE INC. 2,621.00 073897 VO 11200 Construction in Progress SE002474 CONEJO DR SWR REPL 2,621.00 D 222169 CK 11/18/2009 CAR083 CARR -JOHN A 89.01 073544 VO 22210 Customer Refunds 89.01 D 222170 CK 11/18/2009 CLI002 CLINICAL LAB OF S B 9,062.00 073896 VO 11200 Construction in Progress WA002373 PLANT 40 Rehabilitation 36.00 D 073896 VO 65200 Water Testing 91026.00 D 222171 CK 11118/2009 GOl03d RtDGCE- C4�_DIA�E�_t_ 91AKlKER SK" 4 .�2 Date: Wednesday, November 18, 20 East Valley Water District Page: 10 of 16 Time: 02:04PM EVWD Check Register - Standard Report: APCHK.rpt User: KATHY Company: EVWD Check Nbr Type Date id Name ProiectlD Project Description Discount OngDocAmt DrCr 073486 VO 22210 Customer Refunds 47.62 D 222172 CK 11/18/2009 COL037 PIONEER REAL - COLDWELL BANKER 39.94 073479 VO 22210 Customer Refunds 39.94 D 222173 CK 11/18/2009 CON032 SUPPLY CO.- CONSUMERS PIPE & 129.02 073974 VO 61000 Materials & Supplies -Oper. 129.02 D 222174 CK 11/18/2009 COU025 COUNTY OF SAN BERNARDINO 3,008.00 073858 VO 62100 Permit Fees 3,008.00 D 222175 CK 11/18/2009 CRE001 CREST CHEVROLET 35.49 073877 VO 71727 Garage Supplies /Small Tools 35.49 D 222176 CK 11/18/2009 DIL004 REALTORS- DILBECK 59.41 073443 VO 22210 Customer Refunds 59.41 D 222177 CK 11/18/2009 DIR004 DIRECTV 71.40 073950 VO 71010 Utilities 71.40 D 222178 CK 11/18/2009 D00002 RICHARD F DOOTSON 1,000.99 073444 VO 22210 Customer Refunds 636.60 D 073646 VO 22210 Customer Refunds 364.39 D 222179 CK 11/18/2009 EB1002 EB INVESTMENTS 14.21 073545 VO 22210 Customer Refunds 14.21 D 222180 CK 11118/2009 EMP005 EMPLOYMENT DEVELOPMENT DEPT 1,667.00 073963 VO 76300 State Unemployment Insuran 1,667.00 D 222181 CK 11/18/2009 FAR001 FARMER BROS COFFEE 432.55 073968 VO 71503 Kitchen Supplies 251.45 D 073969 VO 71503 Kitchen Supplies 181.10 D 222182 CK 11/18/2009 FED001 FedEx 19.56 073957 VO 71505 Postage 19.56 D 222183 CK 11/18/2009 FIE009 SERVICES, INC -FIELD ASSET 51.74 073467 VO 22210 Customer Refunds 51.74 D 222184 CK 11/18/2009 FLE011 FLEET SERVICES INC 10.92 073945 VO 71720 Vehicle Parts /Supply 10.92 D 222185 CK 11/18/2009 FLO040 FLOWERS -SUSAN 47.52 073445 VO 22210 Customer Refunds 47.52 D '0' "' East Valley Water District 7'ye " Of It Time: 02:04PM F!/Wf) Charlr Rani<4ar _ Slanrlarrl Report: APCHK.rp User. KATHY Company: ;:Vprr Check Nbr Tye Date ld Name ProiectiD Project Description Discount OrigDocAmt DrC 222186 CK 11/18/2009 FOX007 FOX —TERRY 11.68 073486 VO 22210 Customer Refunds 11.68 D 222187 CK 11118/2009 GAB001 GABRIEL EQUIPMENT CO 140.61 073947 VO 71755 Equipment Repairs /Maintena 140.61 D 222188 CK 11/18/2009 GEN007 NAPAAUTOPARTS 5.86 073948 VO 71720 Vehicle Parts /Supply -0.12 5.98 D 222189 CK 11/18/2009 G01001 GOINS JANITORIAL SERVICE 2,135.00 073958 VO 71620 Janitorial Services - Contracc 2,135.00 D 222190 CK 11/18/2009 GRA003 GRANT — GORDON 108.46 073655 VO 79100 Safety Equipment 108.46 D 222191 CK 11/1812009 GRE047 GREGORY — SYLVIA 145.89 073649 VO 22210 Customer Refunds 145.89 D 222192 CK 11/18/2009 HAA001 HAAKER EQUIPMENT COMPANY 460.92 073878 VO 71720 Vehicle Parts /Supply 460.92 D 222193 CK 11/18/2009 HAR004 HARRINGTON INDUSTRIAL PLASTIC 247.43 073840 VO 61000 Materials & Supplies -Oper. 247.43 D 222194 CK 11/18/2009 HAT001 HATFIELD BUICK 53.56 073946 VO 71720 Vehicle Parts /Supply 53.56 D 222195 CK 11/18/2009 HDS001 HD SUPPLY WATERWORKS, LTD 723.76 073970 VO 61000 Materials & Supplies -Oper. 723.76 D 222196 CK 11/1812009 HIC002 HICKS - RICHARDSON ASSOCIATES 5,000.00 073923 VO 74210 Legislative Consultants 5,000.00 D 222197 CK 11118/2009 HIL001 HILTONS FLOWER & GIFTS 65.26 073931 VO 77300 Employee Programs 65.26 D 222198 CK 11/18/2009 HUB001 HUB CONSTRUCTION SPECIALTIES 56.04 073879 VO 61000 Materials & Supplies -Oper. 56.04 D 222199 CK 11/18/2009 HUY006 HUYNH —TRANG 148.28 073650 VO 22210 Customer Refunds 148.28 D 222200 CK 11/18/2009 HWA001 HWANG —LIL1 61.02 073546 Vo 22210 61p P'? Q Date: Wednesday, November 18, 20 East Valley Water District Page: 12 of 16 Time: 02:04PM EVWD Check Register - Standard Report. APCHK.rpt User. KATHY Company: EVWD Check Nbr Tvpe Date Id Name ProiectlD Proiect Description Discount OrigDocAmt DrCr 222201 CK 11/18/2009 IND005 INDUSTRIAL RUBBER & SUPPLY 279.35 073880 VO 61000 Materials & Supplies -Oper. 279.35 D 222202 CK 11/18/2009 INL004 INLAND DESERT SECURITY & 369.60 073894 VO 71300 Communications Services 369.60 D 222203 CK 11/18/2009 INL005 INLAND WATER WORKS SUPPLY CO 4,925.31 073833 VO 14310 Inventory- Constr. Materials -4.19 209.28 D 073842 VO 14310 Inventory- Constr. Materials -94.24 4,711.91 D 073844 VO 14310 Inventory- Constr. Materials -2.09 104.64 D 222204 CK 11/18/2009 INT005 INTERSTATE BATTERY 313.93 073881 VO 71755 Equipment Repairs /Maintena 233.15 D 073882 VO 71755 Equipment Repairs /Maintena 80.78 D 222205 CK 1111812009 ITC001 ITC 263.03 073829 VO 22210 Customer Refunds 263.03 D 222206 CK 11/18/2009 JAC038 JACK HENRY & ASSOCIATES INC 1,423.18 073899 AD 66050 Outsource Billing - 129.13 C 073898 VO 66050 Outsource Billing 1,552.31 D 222207 CK 11/18/2009 JOH075 JOHANSEN- ROBERT 43.38 073446 VO 22210 Customer Refunds 43.38 D 222208 CK 11/18/2009 JRF001 J.R. FREEMAN CO., INC 928.07 073919 AD 71500 Office Supplies -15.27 C 073918 VO 71500 Office Supplies 525.99 D 073918 VO 71570 Computer Supplies 417.35 D 222209 CK 11/18/2009 KH0003 KHOURI -LORA LUNA 7808 073469 VO 22210 Customer Refunds 78.08 D 222210 CK 11/18/2009 KIR010 KIRCHNAVY - JANINE 68.50 073547 VO 22210 Customer Refunds 68.50 D 222211 CK 11/18/2009 LAR027 LAROYA- RONALDO 64.86 073548 VO 22210 Customer Refunds 64.86 D 222212 CK 11/18/2009 LAW003 LAWSON PRODUCTS,INC 163.75 073955 VO 61000 Materials & Supplies -Oper. -1.46 165.21 D 222213 CK 11/18/2009 LDT001 LDT GENERAL MAINTENANCE 264.06 073971 VO 62000 Maintenance 264.p6 D Page: 13 of 16 Report: APCHK.rpt East Valley Water District Time 02:04PM2l 42.07 E V W_ D Cher_ k Ranistar - C_ta_nda_rd_ User: KATHY 185.00 Chew "r D Id Name ProiectlD Project Description 222214 CK 11/18/2009 LE029 LE- SOPHIA 073831 VO 22210 Customer Refunds 222215 CK 11i1812009 LIF001 LIFECOM, INC. 073972 VO 62000 Maintenance 073973 VO 62000 Maintenance 222216 ZC 11/18/2009 LIN031 LINCK -NINA 073933 AD 22210 Customer Refunds 073040 VO 22210 Customer Refunds 222217 CK 11/18/2009 LOG004 BOB LOGAN 073651 VO 22210 Customer Refunds 222218 CK 11/18/2009 MAC002 MAC'S SPRING SHOP 073875 VO 71725 Vehicle Repairs /Maintenance 222219 CK 11/1812009 MAR169 ALINC- MARKAND 073490 VO 22210 Customer Refunds 222220 CK 11/18/2009 MAT035 MATHESON POSTAL SERVICES 073934 VO 22210 Customer Refunds 222221 CK 11/18/2009 MCK002 MC KEE -ARMSTRONG REA -STEVE 073519 VO 22210 Customer Refunds 222222 CK 11/18/2009 MIL001 MILOBEDZKI -JACEK 073895 VO 74100 Computer Consultants 073964 VO 74100 Computer Consultants 222223 CK 11/18/2009 MOR095 SERVICES - MORTGAGE 073653 VO 22210 Customer Refunds 222224 CK 11/18/2009 NEX001 NEXTEL COMMUNICATIONS 073900 VO 71015 Telephone 073900 VO 71305 CommunicationsEquip Rep /h 222225 CK 11118/2009 OFF003 OFFICE DEPOT 073975 VO 71500 Office Supplies 222226 CK 11/18/2009 PAT011 PATNO- DESIREE 073549 \7n 222 10 r",st er Refunds 222227 1'!1 R 12nno �inn2 C-ST11TC,,4G VI \I� OCr11 Page: 13 of 16 Report: APCHK.rpt Company: EMIR Discount OrioDocAmt DrCI 42.07 42.07 D 185.00 120.00 D 65.00 D 0.00 -91.50 C 91.50 D 88.39 88.39 D 305.05 305.05 D 76.85 76.85 D 91.50 91.50 D 367.15 367.15 D 1,600.00 800.00 D 800.00 D 53.27 53.27 D 1,734.80 1,353.83 D 380.97 D 644.25 64425 D 52.36 �� 36 P,', nQ Date: Wednesday, November 18, 20 East Valley Water District Page: 14 of 16 Time: 02:04PM EVWD Check Register - Standard Report: APCHK.rpt User KATHY Company: EVWD Check Nbr Type Date Id Name ProiectlD Proiect Description Discount OrigDocAmt DrCr 073655 VO 22210 Customer Refunds 81.09 D 222228 CK 11/18/2009 PR0001 PRUETTS PRECISION ALIGNMENT 301.19 073949 VO 71725 Vehicle Repairs /Maintenance 301.19 D 222229 CK 11/18/2009 RAM090 RAMIREZ- MARGARITA 7471 073480 VO 22210 Customer Refunds 74.71 D 222230 CK 11/18/2009 REF001 REFUSE DEPT CITY OF S B 1,415.00 073959 VO 71010 Utilities 279.86 D 073960 VO 71010 Utilities 172.48 D 073961 VO 71010 Utilities 119.18 D 073962 VO 71010 Utilities 843.48 D 222231 CK 11/18/2009 RIC032 RICHARDS -ANNE 151.54 073520 VO 22210 Customer Refunds 151.54 D 222232 CK 11/18/2009 RIV036 RIVERO- ELADIO 100.00 073550 VO 22210 Customer Refunds 100.00 D 222233 CK 11/18/2009 ROG001 ROGERS ANDERSON MALODY & SCOTT 18,415.00 073901 VO 73100 Audit/Accounting Fees 18,415.00 D 222234 CK 11/18/2009 SAN038 SAN BERNARDINO COUNTY RECORDER 275.00 073870 VO 22218 Lien Release Fee Payable 275.00 D 222235 CK 11/18/2009 SEN001 SENTRY -TECH SYSTEMS, L.L.C. 2,270.00 073951 VO 72500 Security Services 2,270.00 D 222236 CK 11/18/2009 SMZ001 DBA REALITY WORLD -SMZ CORP 51.85 073481 VO 22210 Customer Refunds 51.85 D 222237 CK 11/18/2009 S00002 SO CAL GAS COMPANY 114.55 073902 VO 71010 Utilities 114.55 D 222238 CK 11118/2009 S00004 SO CAL EDISON COMPANY 175,580.94 073966 VO 63000 Electric 173,918.70 D 073966 VO 71010 Utilities 1,662.24 D 222239 CK 11/18/2009 SOU024 SOUTHERN CALIF OCCUPATIONAL 160.00 073952 VO 71540 Medical Fees 160.00 D 222240 CK 11/18/2009 STA077 STANDLEY- RICKYA 31.35 073447 VO 22210 Customer Refunds 31.35 D ,veo ,,e5nay, Novemcer ib, 2- East Valley Water District Repo: sons Time: 02:04PM _ __ _ EVWD Check Resister _ Standard Report: gpCHK.rpt Uses KATHY _ Company: E% M01 Check Nbr !A Name Pmiectin Protect Description Discount OriguocAm Dry 222241 CK 11/18/2009 STE062 STEVENSON- ROBERT D 19.13 073852 VO 22210 Customer Refunds 19.13 D 222242 CK 11/18/2009 SUP005 SUPERIOR AUTOMOTIVE WAREHOUSE 113.77 073883 VO 71755 Equipment Repairs /Maintena 13.59 D 073885 VO 71720 Vehicle Parts /Supply 86.47 D 073886 VO 71720 Vehicle Parts /Supply 13.71 D 222243 CK 11/18/2009 SYS002 SYSTEMS SOURCE, INC. 1,852.78 073953 VO 71552 Office Equipment Rental 926.39 D 073954 VO 71552 Office Equipment Rental 926.39 D 222244 CK 11/18/2009 TH0049 THOMAS- MICHEAL 136.21 073521 VO 22210 Customer Refunds 136.21 D 222245 CK 11/18/2009 TOM001 TOM DODSON & ASSOCIATES 3,147.00 073903 VO 11200 Construction in Progress WA002448 EASTWOOD FARMS MUTUAL WATER 3,147.00 D 222246 CK 1111812009 UN1002 UNITED PARCEL SERVICE 36.00 073871 VO 71505 Postage 18.00 D 073965 VO 71505 Postage 18.00 D 222247 CK 11/1812009 UN1019 HIGHLAND UNIVERSAL STORAGE 2,127.00 073872 VO 71910 Outside Storage Rental 2,127.00 D 222248 CK 11/18/2009 USA006 USA MOBILITY WIRELESS, INC 188.95 073856 VO 71300 Communications Services 188.95 D 222249 CK 11/18/2009 VAC001 LLC- VACATIONLAND 23.09 073448 VO 22210 Customer Refunds 23.09 D 222250 CK 11/1812009 VER003 VERIZON WIRELESS 331.62 073869 VO 71015 Telephone 89.07 D 073869 VO 71405 Subscription Info Services 225.05 D 073869 VO 71570 Computer Supplies 17.50 D 222251 CK 11/18/2009 VER004 VERIZON CALIFORNIA 46.89 013873 VO 71015 Telephone 46.89 D 222252 CK 11/18/2009 VER014 VERISIGN, INC 1,790.00 073816 VO 71570 Computer Supplies 1,790.00 D 222253 CK 11118/2 009 VIS002 \11STA PAINTS 634.68 073930 VO 61000 Materials & Supplies -Oper. -12.95 647.63 D Date: Wednesday, November 18, 20 East Valley Water District Page: 16 of 16 Time: 02:04PM EVWD Check Resister - Standard Report: APCHK.rpt User: KATHY Company: EVWD Check Nbr Type Date Id Name ProIectID Project Description Discount OrigDocAmt DrCr 222254 CK 11/18/2009 VUL001 VULCAN MATERIALS COMPANY 1,091.58 073884 VO 61000 Materials & Supplies -Oper. 389.69 D 073932 VO 61000 Materials & Supplies -Oper. 701.89 D 222255 CK 11/18/2009 WIL103 WILLIAMS —MARY ANN 78.08 073491 VO 22210 Customer Refunds 78.08 D Total 420,941.39 ,� 01astValley ��, Water District (Board Memorandum From: Brian W. Tompkins /Chief Financial Officer Subject: General Manager's Expenses. Recornmendation: Approve the attached list of payments and reimbursements for General Manager expenses during the period November 10, 2009 through November 18, 2009. Background: DATE: NOVEMBER 24, 2009 Business and Travel expenses incurred by the General Manager and paid during the reporting period stipulated above totaled $484.82. A summary of theses expenses by authorized payment methods follows: American Express — R Martin 484.82 American Express — J Hendricksen CalCard •- R Martin CalCard -- J Hendricksen CalCard •- E Bateman Direct Reimbursement Total 484.82 *PEastValley Water District Board Memorandum No. B- 5 -2009 Date: 11/20/09 From: Robert E. Martin, General Manager 14�C Subject: Resolution Number 2009.22 Recommendation: Review and consider the attached resolution for adoption. Background: Resolution Number 2009.22 summarizes the Board's policies for its compensation, reimbursements, ethics, sexual harassment training and insurance coverage. This policy, which was last updated in 2008, has a provision that requires Board review on an annual basis. That review was assigned to, and has been completed by, an ad hoc Committee of the Board. A number of revisions have been recommended by the Committee and are shown on the redline version which is also included for your review. These amendments have been reviewed by legal counsel and are ready for the full Board's consideration. Fiscal Impact: RESOLUTION NO. 2009.22 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING POLICIES FOR ITS COMPENSATION, REIMBURSEMENT, ETHICS AND SEXUAL HARASSMENT TRAINING, AND INSURANCE COVERAGE 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 activities are subject to the requirements of California law, including but not limited to the "Local Government Sunshine Bill" ( "AB 1234 "), which took effect on January 1, 2006. C. The purpose of this resolution is to ensure compliance with AB 1234 and to establish policies with respect to (1) Board member compensation, (2) Board member reimbursement, (3) Board member ethics training, (4) Board member sexual harassment training, and (5) Board member insurance coverage. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS of the East Valley Water District as follows: Section 1. COMPENSATION. 1.1. Amount. The amount of Board member compensation paid by the District shall be determined in accordance with all applicable requirements of the California Water Code. Pursuant to said requirements, the Board shall set the rate of such compensation for a day's service, and shall set the maximum number of day's service for which a Board member may receive compensation each month from the District, by adoption of a separate ordinance. 1.2. Day's Service. 1.2.1. Meetings. For purposes of determining Board member entitlement to compensation under the ordinance referenced in Section 1.1 of this Resolution, the term "day's service" is defined as attendance or participation of a Board member, in person or by telephone, at an eligible meeting with one or more other parties for the performance of official duties on behalf of the District. An "eligible meeting" as used herein includes, but is not limited to, the following: (a) Any occurrence that is listed in Government Code Section 53232.1(a); (b) A regular, special, or emergency meeting of the Board; (c) A meeting of a standing, ad hoc, or advisory committee of the Board; (d) A meeting with the District's General Manager involving the operations of the District; (e) A meeting of organizations with interests in matters involving the functions and operations of the District; (f) A conference, seminar, or organized educational activity involving matters related to the functions and operations of the District; and (g) All other occurrences for which the Board member has obtained prior approval from the Board to attend or participate on behalf of the District. 1.2.2. Daily Limitation. If a Board member attends or participates in multiple meetings in a single day, the Board member shall only be entitled to compensation for one eligible meeting on that day. 1.2.3. Ineligible Meetings. Meetings that would not generally be considered an eligible meeting for purposes of Board member entitlement to District compensation under the ordinance referenced in Section 1.1 of this Resolution shall include District- sponsored social 2 gatherings, picnics, awards banquets, holiday events, retirement dinners, and similar functions, unless previously pre- approved by the Board. 1.3. Procedure. To receive compensation for attendance or participation at eligible and/or approved meetings, a Board member shall submit to the District's General Manager a payment request for the calendar month by noon Thursday preceding the first regular Board meeting of the following; month, at which time the Board will consider approval of the payment request. Payment requests that are not timely filed will be considered at a subsequent Board meeting. Section 2. REIMBURSEMENT. The District shall reimburse Board members for costs incurred related to attendance or participation at eligible and/or approved meetings as defined in Section 1 of this Resolution, as provided herein. 2.1. Eligible Expenses. Expenses eligible for reimbursement shall be limited to (1) registration or tuition costs, or other charges for participation at the meeting; (2) transportation to and from the meeting, including airfare, car rental, or mileage for use of a Board member's own automobile, and other miscellaneous transportation costs (shuttle, taxi, parking, etc.); (3) lodging at the single -room rate; and (4) reasonable costs of meals. 2.2. Budeet Limits. The maximum amount of District -paid expenses that each Board member may annually incur without separate prior Board approval is $8,000 each fiscal year. Expenses incurred by the District that are unused by a Board member requesting District :payment thereof may be charged back to that individual Board member at the discretion of the Board. 2.3. Rates. 2.3.1. Registration, Tuition. and Meeting Charges. The District reimbursement rate 3 for registration or tuition costs, or other charges for participation at a meeting, shall be the actual amount incurred. 2.3.2. Transportation. (a) Members of the Board must use government and group rates offered by a provider of transportation services for travel when available. If such rates are not available, the District reimbursement rate for Board member transportation shall be the actual amount incurred, not to exceed $100.00 per day's service (except for airfare, which shall not exceed the cost of round -trip coach airfare). (b) The District reimbursement rate for mileage by use of a Board member's own vehicle shall be calculated on the basis of total miles driven for District purposes at the rate specified in the Internal Revenue Code in effect at the time of the vehicle usage. (c) The District reimbursement rate for vehicle parking by a Board member shall be the actual amount incurred. 2.3.3. Lodging. Members of the Board must use government and group rates offered by a provider of lodging services when available. If the lodging is in connection with an accepted conference or organized educational activity, lodging costs must not exceed the maximum group rate published by the conference or activity sponsor, provided that lodging at the group rate is available to the member of the Board at the time of booking. If a government or group rate is not available, the District reimbursement rate for Board member lodging shall be the actual amount incurred, not to exceed the rate for comparable lodging. 2.3.4. Meals. The District reimbursement rate for Board member meals shall be the actual amount incurred, not to exceed $125.00 per day's service. 2.3.5. Other. District reimbursement of all other actual and necessary expenses S incurred by a Board member shall be computed using the applicable Internal Revenue Service rates for reimbursement as established in Publication 463, or any successor publication. All expenses that do not fall within this reimbursement policy or the Internal Revenue Service reimbursable rates, as provided above, shall be approved by the Board in a public meeting before the expense is incurred. If a Board member chooses to incur additional costs that are above the rates established herein, and those costs have not been approved by the Board in a public meeting before the expense is incurred, then the Board member may do so at his or her own expense. 2.4. Ineligible Expenses. Board members shall not be eligible for District reimbursement of any expenses that are incurred in connection with an ineligible meeting described in Section 1.2.3 of this Resolution, nor for any expenses that are otherwise incurred by any person traveling or attending a meeting as a guest of the Board member. No Board member shall be eligible for District reimbursement of any expenses £or personal services not related to District business. 2.5. Expense Forms. The District shall provide expense report forms to be filed by the members of the Board for reimbursement for actual and necessary expenses incurred on behalf of the District in the performance of official duties. The expense reports shall document that expenses meet the policy reflected in this Resolution for expenditure of public resources. Board members shall submit to the District's General Manager expense reports for the calendar month by noon Thursday preceding the first regular Board meeting of the following month, and the reports shall be accompanied by the receipts documenting each expense. At the first regular Board meeting of each month, the Board will consider approval of District reimbursement of Board member expenses incurred during the previous month as reflected in the timely -filed expense reports. F,xpense reports that are riot timely filed will be considered at a subsequent Board meeting. All documents related to reimbursable District expenditures are public records subject to disclosure under the California Public Records Act. 2.6. Report. Board members shall provide brief reports on meetings attended at the expense of the District at the next regular meeting of the Board. Section 3. ETHICS TRAINING. 3.1. Requirement. 3.1.1. Service Prior To 2006. Each local agency official in District service as of January 1, 2006, except for Board members whose term of office ends before January 1, 2007, must receive training in ethics laws before January 1, 2007. Thereafter, each local agency official must receive such training at least once every two years. 3.1.2. Service On Or After 2006. Each local agency official who commences service with the District on or after January 1, 2006, must receive training in ethics laws no later than one year from the first day of service with the District. Thereafter, each local agency official must receive such training at least once every two years. 3.2. Application. 3.2.1. Local Agency Official. As used in Section 3.1 of this Resolution, the term "local agency official" means all of the following: (a) All Board members; and (b) All executive staff of the District. 3.2.2. Ethics Laws. As used in Section 3.1 of this Resolution, the phrase "ethics laws" includes, but is not limited to, the following: (a) Laws relating to personal financial gain by public servants, including, but not limited to, laws prohibiting bribery and conflict -of- interest laws; (b) Laws relating to claiming perquisites of office, including, but not no limited to, gift and travel restrictions, prohibitions against the use of public resources for personal or political purposes, prohibitions against gifts of public funds, mass mailing restrictions, and prohibitions against acceptance of free or discounted transportation by transportation companies; (c) Government transparency laws, including, but not limited to, financial interest disclosure requirements and open government laws; and (d) Laws relating to fair processes, including, but not limited to, common law bias prohibitions, due process requirements, incompatible offices, competitive bidding requirements for public contracts, and disqualification from participating in decisions affecting family members. 3.3. District Responsibilities. 3.3.1. Records. The District shall maintain records indicating (a) the dates that local agency officials satisfied the requirements of Section 3 of this Resolution and (b) the entity that provided the training. The District shall maintain these records for at least five years after local agency officials receive the training. These records are public records subject to disclosure under the California Public Records Act. 3.3.2. Notice. The District is required to provide information on training available to meet the requirements of Section 3 of this Resolution to its local agency officials at least once annually. Section 4. SEXUAL HARASSMENT TRAINING. 4.1. Requirement. 4.1.1. Service Prior To 2008. Each Board member in District service as of January 1, 2008, must participate in the District's program of providing at least two hours of classroom or other effective interactive training and education regarding sexual harassment to its supervisory 7 employees no later than six months from the effective date of this Resolution. Thereafter, each Board member must participate in such training at least once every two years. 4.1.2. Service On Or After 2008. Each Board member who commences service with the District on or after January 1, 2008, must participate in the District's program of providing at least two hours of classroom or other effective interactive training and education regarding sexual harassment to its supervisory employees no later than six months from the first day of service with the District. Thereafter, each Board member must participate in such training at least once every two years. 4.2. District Responsibilities. The training and education required by Section 4 of this Resolution shall include information and practical guidance regarding the federal and state statutory provisions concerning the prohibition against and the prevention and correction of sexual harassment and the remedies available to victims of sexual harassment in employment. The training and education shall also include practical examples aimed at instructing District supervisors in the prevention of harassment, discrimination, and retaliation, and shall be presented by trainers and educators with knowledge and expertise in the prevention of harassment, discrimination, and retaliation. Section 5. INSURANCE COVERAGE FOR BOARD MEMBERS. 5.1 Current Directors. Pursuant to California Water Code Section 31008 and the applicable provisions of California Government Code Section 53200 - 53210, the District, subject to such terms and conditions as may be established by the Board, shall make health and welfare benefits available to its active Board members and their spouses and dependent children under the age of 21, dependent children under the age of 25 who are full -time students at a college or university, and dependent children regardless of age who are physically or mentally incapacitated (collectively, R "Dependents'). The District shall pay the costs of such insurance coverage for those Board members and their spouses and Dependents who elect to accept said benefits, during the period of time that such Board members are serving in office as Board members of the District. Effective January 1, 2009, the health and welfare benefits made available under this Section shall not exceed the level of insurance benefits provided by the District to its regular full -time employees. 5.2. Dormer Directors. 5.2.1. Continuation of District -Paid Benefits. (a) Pursuant to the requirements of California Government Code Sections 53200 -53210 and the policy adopted by the Board by minute action on November 28, 1988, and subsequently clarified by minute action on February 13, 2007, the District, subject to such terms and conditions as may be established by the Board, shall pay the costs of health and dental insurance coverage to former Board members who (a) elect to accept such benefits, (b) served in office after January 1, 1981, (c) were not first elected to a term of office that began on or after January 1, 1995, and (d) served not less than 12 years on the Board at the time of termination. (b) Pursuant to the requirements of California Government Code Sections 53200 - 53210, the District, subject to such terms and conditions as may be established by the Board, shall pay all, or such portion as the Board may elect, of the premiums, dues, or other charges for health and welfare benefits of those former Board members, and the spouses and Dependents of such former Board members for whom those health and welfare benefits have been provided by the District, who elect to accept such benefits and were Board members who (a) were first elected or appointed to the Board prior to July 1, 1994, and are thus not otherwise excluded from membership in the Public Employees Retirement System ( "PERS "), (b) obtained membership in PERS due to their membership on the Board, (c) are eligible to retire from membership in PERS, and (d) formally M retire from membership in PERS. 5.2.2. Continuation of Self -Paid Benefits. Pursuant to the requirements of California Government Code Sections 53200 - 53210, the District, subject to such terms and conditions as may be established by the Board, shall make health and welfare benefits available to its former Board members who do not meet the requirements of subsections (a) or (b) of Section 5.2.1 above, and to the spouses and Dependents of such former Board members, who agree to and do pay the full costs of such insurance coverage and otherwise participate on a self -pay basis, and who satisfy any and all additional eligibility requirements imposed by PERS. The election requirements for the insurance coverage provided herein, and the length of time in which said coverage shall be made available to such participants upon election, shall be the same as is set forth for the continuation of benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985. Section 6. REVIEW OF RESOLUTION ON ANNUAL BASIS. Each year the Board shall review this Resolution 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 Resolution, and make any recommendations deemed appropriate, including proposals to amend the Resolution. Upon conclusion of its review, the Board may take any action it deems appropriate concerning this Resolution. Nothing herein shall preclude the Board from taking action on the Resolution at times other than upon conclusion of the annual review. Section 7. SEVERABILITY. If any provision of this Resolution, or the application thereof to any person or circumstances, is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are declared to be severable. 10 Section 8. EFFECTIVE DATE. The provisions of this Resolution shall become effective upon adoption and shall supersede the provisions of Resolution No. 2008.03 adopted by the Board on February 19, 2008. Adopted this -- day of 2009. AYES: NOES: ABSTAIN: ABSENT: President, Board of Directors ATTEST: Secretary, Board of Directors RESOLUTION NO. 20089.03 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING POLICIES FOR ITS COMPENSATION, REIMBURSEMENT, ETHICS AND SEXUAL HARASSMENT TRAINING, AND INSURANCE COVERAGE 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 activities are subject to the requirements of California law, including but not limited to the "Local Government Sunshine Bill" ( "AB 1234 "), which took effect on January 1, 2006. C. the purpose of this resolution is to ensure compliance with AB 1234 and to establish policies with respect to (1) Board member compensation, (2) Board member reimbursement, (3) Board member ethics training, (4) Board member sexual harassment training, and (5) Board member insurance coverage. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS ofthe East Valley Water District as follows: Section 1. COMPENSATION. 1.1. Amount. The amount of Board member compensation paid by the District shall be determined in accordance with all applicable requirements of the California Water Code. Pursuant to said requirements, the Board shall set the rate of such compensation for a day's service, and shall set the maximum number of day's service for which a Board member may receive compensation each month from the District, by adoption of a separate ordinance. 1.2. Day's Service. 1.2.1. Meetings. For purposes of determining Board member entitlement to compensation under the ordinance referenced in Section 1.1 of this Resolution, the term "day's service" is defined as attendance or participation of a Board member, in person or by telephone, at an eligible meeting with one or more other parties for the performance of official duties on behalf of the District. An "eligible meeting" as used herein includes, but is not limited to, the following: (a) Any occurrence that is listed in Government Code Section 53232.1(a); (b) A regular, special, or emergency meeting of the Board; (c) A meeting of a standing, ad hoc, or advisory committee of the Board; (d) A meeting with the District's General Manager involving the operations of the District; (he) A meeting of organizations with interests in matters involving the functions and operations of the District; (if) A conference, seminar, or organized educational activity involving matters related to the functions and operations of the District; and (}g) All other occurrences for which the Board member has obtained prior approval from the Board to attend or participate on behalf of the District. 2 1.2.2. Daily Limitation. If a Board member attends or participates in multiple meetings in a single day, the Board member shall only be entitled to compensation for one eligible meeting on that day. 1.2.3. Ineligible Meetings. Meetings that would not generally be considered an eligible meeting; for purposes of Board member entitlement to District compensation under the ordinance referenced in Section 1.1 of this Resolution shall include East Vallev watt, District- sponsored social gatherings, picnics, ^°fade° fesfiN�als, awards banquets, holiday events, retirement dinners, and similar functions, unless previously pre- approved by the Board. 1.3. Procedure. To receive compensation for attendance or participation at eligible and/or approved meetings, a Board member shall submit to the District's General Manager a payment request for the calendar month by noon Thursday preceding the first regular Board meeting of the following month, at which time the Board will consider approval of the payment request. Payment requests that are not timely filed will be considered at a subsequent Board meeting. Section 2. The District shall reimburse Board members for costs incurred related to attendance or participation at eligible and/or approved meetings as defined in Section 1 of this Resolution, as provided herein. 2.1. Eligible Expenses. Expenses eligible for reimbursement shall be limited to (1) registration or tuition costs, or other charges for participation at the meeting; (2) transportation to and from the meeting, including airfare, car rental, or mileage for use of a Board member's own automobile, and other miscellaneous transportation costs (shuttle, taxi, parking, etc.); (3) lodging at the single -room rate; and (4) reasonable costs of meals. R1 2.1 Budget Limits. The maximum amount of District -paid expenses that each Board member may annually incur without separate prior Board approval is $8,000 each fiscal year. Expenses incurred by the District that are unused by a Board member requesting District payment thereof may be charged back to that individual Board member at the discretion of the Board. 2.3. Rates. 2.3.1. Registration, Tuition, and Meeting Charges. The District reimbursement rate for registration or tuition costs, or other charges for participation at a meeting, shall be the actual 2.3.2. Transportation. (a) Members of the Board must use government and group rates offered by a provider of transportation services for travel when available. If such rates are not available, the District reimbursement rate for Board member transportation shall be the actual amount incurred, not to exceed $100.00 per day's service (except for airfare, which shall not exceed the cost of round -trip coach airfare). (b) The District reimbursement rate for mileage by use of a Board member's own vehicle shall be calculated on the basis of total miles driven for District purposes at the rate specified in the Internal Revenue Code in effect at the time of the vehicle usage. (c) The District reimbursement rate for vehicle parking by a Board member shall be the actual amount incurred. 2.3.3. Lodging. Members of the Board must use government and group rates offered by a provider of lodging services when available. If the lodging is in connection with an accepted conference or organized educational activity, lodging costs must not exceed the maximum group rate m published by the conference or activity sponsor, provided that lodging at the group rate is available to the member of the Board at the time of booking. If a government or group rate is not available, the District reimbursement rate for Board member lodging shall be the actual amount incurred, not to exceed the :rate :for comparable lodging. 2.3.4. Meals. The District reimbursement rate for Board member meals shall be the actual amount incurred, not to exceed $125.00 per day's service. 2.3.5. Other. District reimbursement of all other actual and necessary expenses incurred by a Board member shall be computed using the applicable Internal Revenue Service rates for reimbursement as established in Publication 463, or any successor publication. All expenses that do not fall within this reimbursement policy or the Internal Revenue Service reimbursable rates, as provided above., shall be approved by the Board in a public meeting before the expense is incurred. If a Board member chooses to incur additional costs that are above the rates established herein, and those costs have not been approved by the Board in a public meeting before the expense is incurred, then the Board member may do so at his or her own expense. 2.4. Jnelieible Expenses. Board members shall not be eligible for District reimbursement of any expenses that are incurred in connection with an ineligible meeting described in Section 1.2.3 of this Resolution, nor for any expenses that are otherwise incurred by any person traveling or attending a meeting as a guest of the Board member. No Board member shall be eligible for District reimbursement of any expenses for personal services not related to District business. 2.5. ]Expense Forms. The District shall provide expense report forms to be filed by the members of the Board for reimbursement for actual and necessary expenses incurred on behalf of the District in the performance of official duties. The expense reports shall document that expenses meet the policy reflected in this Resolution for expenditure of public resources. Board members shall submit to the District's General Manager expense reports for the calendar month by noon Thursday preceding the first regular Board meeting of the following month, and the reports shall be accompanied by the receipts documenting each expense. At the first regular Board meeting of each month, the Board will consider approval of District reimbursement of Board member expenses incurred during the previous month as reflected in the timely -filed expense reports. Expense reports that are not timely filed will be considered at a subsequent Board meeting. All documents related to reimbursable District expenditures are public records subject to disclosure under the California Public Records Act. 2.6. Report. Board members shall provide brief reports on meetings attended at the expense of the District at the next regular meeting of the Board. Section 3. ETHICS TRAINING. 3.1. Requirement. 3.1.1. Service Prior To 2006. Each local agency official in District service as of January 1, 2006, except for Board members whose term of office ends before January 1, 2007, must receive training in ethics laws before January 1, 2007. Thereafter, each local agency official must receive such training at least once every two years. 3.1.2. Service On Or After 2006. Each local agency official who commences service with the District on or after January 1, 2006, must receive training in ethics laws no later than one year from the first day of service with the District. Thereafter, each local agency official must receive such training at least once every two years. 3.2. Application. 3.2.1. Local A ency Official. As used in Section 3.1 of this Resolution, the term "local agency official" means all of the following: 2 (a) All Board members; and (b) All executive staff of the District. 3.2.2. Ethics Laws. As used in Section 3.1 of this Resolution, the phrase "ethics laws" includes, but is not limited to, the following: (a) Laws relating to personal financial gain by public servants, including, but not limited to, laws prohibiting bribery and conflict -of- interest laws; (b) Laws relating to claiming prerequisites of office, including, but not limited to, gift and travel restrictions, prohibitions against the use of public resources for personal or political purposes, prohibitions against gifts of public funds, mass mailing restrictions, and prohibitions against acceptance of free or discounted transportation by transportation companies; (c) Government transparency laws, including, but not limited to, financial interest disclosure requirements and open government laws; and (d) Laws relating to fair processes, including, but not limited to, common law bias prohibitions, due process requirements, incompatible offices, competitive bidding requirements for public contracts, and disqualification from participating in decisions affecting family members. 3.3. ]District Responsibilities. 3.3.1. Records. The District shall maintain records indicating (a) the dates that local agency officials satisfied the requirements of Section 3 of this Resolution and (b) the entity that provided the training. The District shall maintain these records for at least five years after local agency officials receive the training. These records are public records subject to disclosure under the Califbmia Pub] is Records Act. 7 3.3.2. Notice. The District is required to provide information on training available to meet the requirements of Section 3 of this Resolution to its local agency officials at least once annually. Section 4. SEXUAL HARASSMENT TRAINING. 4.1. Requirement. 4.1.1. Service Prior To 2008. Each Board member in District service as of January 1, 2008, must participate in the District's program of providing at least two hours of classroom or other effective interactive training and education regarding sexual harassment to its supervisory employees no later than six months from the effective date of this Resolution. Thereafter, each Board member must participate in such training at least once every two years. 4.1.2. Service On Or After 2008. Each Board member who commences service with the District on or after January 1, 2008, must participate in the District's program of providing at least two hours of classroom or other effective interactive training and education regarding sexual harassment to its supervisory employees no later than six months from the first day of service with the District. Thereafter, each Board member must participate in such training at least once every two years. 4.2. District Responsibilities. The training and education required by Section 4 of this Resolution shall include information and practical guidance regarding the federal and state statutory provisions concerning the prohibition against and the prevention and correction of sexual harassment and the remedies available to victims of sexual harassment in employment. The training and education shall also include practical examples aimed at instructing District supervisors in the prevention of harassment, discrimination, and retaliation, and shall be presented by trainers and educators with knowledge and expertise in the prevention of harassment, discrimination, and E retaliation. Section 5. INSURANCE COVERAGE FOR BOARD MEMBERS. 5.1 Current Directors. Pursuant to California Water Code Section 31008 and the applicable provisions of California Government Code Section 53200 - 53210, the District, subject to such terms and conditions as may be established by the Board, shall make health and welfare benefits available to its active Board members and their spouses and dependent children under the age of 21, dependent children under the age of 2535 who are full -time students at a college or university, and dependent children regardless of age who are physically or mentally incapacitated (collectively, "Dependents "). The District shall pay the costs of such insurance coverage for those Board members and their spouses and Dependents who elect to accept said benefits, during the period of time that such Board members are serving in office as Board members of the District. Effective January 1, 2009, the health and welfare benefits made available under this Section shall not exceed the level of insurance benefits provided by the District to its regular full -time employees. 5.2. Former Directors. 5.2.1. Continuation of District -Paid Benefits. (a) Pursuant to the requirements of California Government Code Sections 53200 -53210 and the policy adopted by the Board by minute action on November 28, 1988, and subsequently clarified by minute action on February 13, 2007, the District, subject to such terms and conditions as may be established by the Board, shall pay the costs of health and dental insurance coverage to former Board members who (a) elect to accept such benefits, (b) served in office after January 1, 1981, (c) were not first elected to a term of office that began on or after January 1, 1995, and (d) served not less than 12 years on the Board at the time of termination. (b) Pursuant to the requirements of California Government Code Sections 53200 - 53210, the District, subject to such terms and conditions as may be established by the Board, shall pay all, or such portion as the Board may elect, of the premiums, dues, or other charges for health and welfare benefits of those former Board members, and the spouses and Dependents of such former Board members for whom those health and welfare benefits have been provided by the District, who elect to accept such benefits and were Board members who (a) were first elected or appointed to the Board prior to July 1, 1994, and are thus not otherwise excluded from membership in the Public Employees Retirement System ( "PERS "), (b) obtained membership in PERS due to their membership on the Board, (c) are eligible to retire from membership in PERS, and (d) formally retire from membership in PERS. 5.2.2. Continuation of Self -Paid Benefits. Pursuant to the requirements of California Government Code Sections 53200 - 53210, the District, subject to such terms and conditions as may be established by the Board, shall make health and welfare benefits available to its former Board members who do not meet the requirements of subsections (a) or (b) of Section 5.2.1 above, and to the spouses and Dependents of such former Board members, who agree to and do pay the full costs of such insurance coverage and otherwise participate on a self -pay basis, and who satisfy any and all additional eligibility requirements imposed by PERS. The election requirements for the insurance coverage provided herein, and the length of time in which said coverage shall be made available to such participants upon election, shall be the same as is set forth for the continuation of benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985. Section 6. REVIEW OF RESOLUTION ON ANNUAL BASIS. Each year the Board shall review this Resolution to determine its effectiveness and the IN necessity for its continued operation. The District's General Manager shall report to the Board on the operation of this Resolution, and make any recommendations deemed appropriate, including proposals to amend the Resolution. Upon conclusion of its review, the Board may take any action it deems appropriate concerning this Resolution. Nothing herein shall preclude the Board from taking action on the Resolution at times other than upon conclusion of the annual review. Section 7. SEVERABILITY. If any provision of this Resolution, or the application thereof to any person or circumstances, is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are declared to be severable. Section 8. EFFECTIVE DATE. The provisions of this Resolution shall become effective upon adoption and shall supersede the provisions of Resolution No. 2003368.03 adopted by the Board on neeeffiber- 13Febium 19, 20038. Adopted this 4.9`h— day of Febfu 20059. AYES: NOES: ABSTAIN: ABSENT: President, Board of Directors ATTEST: Secretary, Board of Directors hc>dgdon group ..,.:; ucdndnr'.q'odC com 146: Lass CcCI.: ', Di.,( Su Ie 230 Co loo. Caloo,r is s -23?4 i 90P 7£•3.3520 F: SG6. 7b3.302c October 6, 2009 Mr. Robert Martin General Manager Bast Valley Water District 3654 E. Highland Avenue, Suite 18 Highland, California 92346 Re: Administrative Facility Dear Mr. Martin, As a result of my meeting with Gary Miller several months ago on unrelated issues, I learned that the district had placed the administrative facility on hold. After meeting with you, and learning of the projected estimates, I requested a set of plans to prepare a budget and project - financing plan. The following; outlines our thoughts and proposal to initiate further discussions with the district. After reviewing the plans our team believes that, the reduction in general construction costs and various adjustments to the scope can substantially reduce the project cost without affecting the aesthetics or functional use. The: total project costs including on and off -site improvements, permits, and interior improvement are estimated at $18.7 million with prevailing wage. Additional savings may be realized via phasing of the project; although serious discussions with the district and project architect need to take place to fully explore this option. The attached commitment from Kinsell Newcomb & DeDios outlines the financing parameters of a Build -Own- Lease - Transfer project. Using the strong rating of EVWD for a credit lease, we have proposed three alternative terms with 10, 20, and 30 -year funding options using a 30 -year amortization. Funding costs will range from 3.85% to 4.80% based on current rates. The proposal includes the core building improvement utilizing a $1.00 annual ground lease without financing the district's FF &E. As an alternative, a turnkey package including land reimbursement and the inclusion of FF &E may be explored. Using the current project costs and funding assumptions, the fully amortized annual lease obligation would be approximately $1.3 million plus NNN expenses; however, the final lease payment would be adjusted to reflect the actual project costs. I recognize that our budget figure is less than previously estimated, but I have every confidence that we can provide a quality product under this scenario. Our firm is uniquely structured to provide an integrated real estate solution through in -house capabilities as developer, project manager, and builder allowing us to add value in each phase. We look forward to working with you and your team. Sincerely, Aaron W. Hodgdon cc: Jeff Kinsell, KND Enclosures: Project Budget KND Financing Proposal Hodgdon Group 746) East Cootar Dd,, suite 23C Colton, Caldorni. 92324 T:90y.783 3020 r:909. 783,3026 ffWW hodgdonoroup.com �EastValley W'ater District Board Memorandum No. B -4 -2009 .Date: 11/20/09 From: Robert E. Martin, General Manager Subject: Sale of Surplus Land A-,. Recommendation: Adopt Resolution Number 2009.23 authorizing the Sale of this parcel to Roberston's Ready Mix. Background: Some months ago, the Board declared surplus a well site that the District owns in the eastern portion of our service area. Specifically, the property is located along the extension of Church Street, south of Greenspot Road in the middle of the Santa Ana River wash area. The parcel is 0.5 acres in size and was originally acquired for use as a well site. Due to circumstances beyond our control, we are not able to complete this project. We provided notice to all other appropriate governmental agencies of the availability of this land and received no expressions of interest. We have received a proposal to buy the property from Robertson's Ready Mix, who owns much of the adjacent property. Robertson's made an offer to buy the parcel for $7,500 which was the price the District paid for the property when we bought it many years ago from them. The Board recently discussed this issue and expressed an interest in selling the property to Robertson's if the purchase price could be increased to reflect the time and money that has been invested by the District in its effort to sell the property. I met with the Robertson's representative and negotiated a revised purchase price of $10,000 for the parcel. I believe this is a reasonable price for the land and adequately reimburses the District for its efforts in disposing of the property. Fiscal Impart: $10,000 RESOLUTION NO. 2009.23 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT AUTHORIZING SALE OF SURPLUS PROPERTY WHEREAS, the East Valley Water District (hereinafter referred to as "the District ") is a county water district organized and operating pursuant to California Water Code Section 30000 et seq.; WHEREAS, the District is the owner of approximately 20,000 square feet of vacant land located +/- 0.5 mile east of Orange Street and +/- 0.8 mile north of Riverview Drive in the City of Redlands, County of San Bernardino, State of California, which is more particularly described as Assessor's Parcel Number 0291 - 141 -18, and is further described and depicted in Exhibits "A" and "B" attached hereto and incorporated herein by this reference (hereinafter referred to as "the Property "); WHEREAS, the District's Board of Directors has determined that the Property is surplus and no longer necessary for use by the District; WHEREAS, the District's Board of Directors desires to sell the Property; WITEREA.S, the District's General Manager has caused written offers to sell the Property to be delivered to all entities entitled to receive such notice pursuant to the applicable provisions of Government Code Section 54220 et seq.; WHEREAS, the District has not received any responses to said offers within the time period and in the manner required by Government Code Section 54220 et seq.; and WHEREAS, the District has subsequently received an offer from Robertson's ("the Buyer's to purchase the Property for the sum of $10,000.00 ( "the Purchase Price "). NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the East Valley Water District does hereby resolve, find, determine, and order as follows: I. The sale of the Property to the Buyer upon the terms set forth herein has been negotiated in compliance with all applicable provisions of Government Code Section 54220 et seq., and is hereby approved. 2. Upon the Buyer's tender of an acceptable cashier's check made payable to the District in the amount of the Purchase Price, the President of the District's Board of Directors and the General Manager of the District are hereby authorized to execute any and all deeds and other documents necessary to effectuate the intent of this Resolution. ADOPTED this 20' day of November, 2009. AYES: NOES: ABSTAIN: ABSENT: George E. Wilson President, Board of Directors ATTEST: Robert E. Martin Secretary, Board of Directors Property Detail Report Raa[CLuestProfesslonai '" For Property Located At ,CA owner Information; Garage Area: Owner Name:: EAST VALLEY WATER DISTRICT Mailing Address: PO BOX 3427, SAN BERNARDINO CA 82413.3427 B900 • Phone Number: Vesting Codes: ' /180 Location Information: Legal Description: PTN SEC 11 TP 1S R 3W DESC COM W 114 COR SO SEC 11 TH S 00 DEG 57 Pool: MIN 59 SECONDSE ALG W LI SO SEC 654.68 FT TO NW CDR S 112 NW 1/4 Quality: SW 114 SD SEC BEING TPOS TH N89 DEG 49 MIN 52 SECONDS E ALG N LI Condition: So S 112 233 FT TH S 00 DEG 57 MIN 69 SECONDS E 100 FTTH S 89 DEG 48 Lot W ilthlDepth: x MIN 62 SECONDS W 233 FT TO INTERSECTION WITH W LI SO SEC TH N OD DEG 57 MIN 69 SECONDS W ALG SO W L1100 FT TO SO NW COR BEING Commercial Units: TPOB County: SAN BERNARDINO, CA APN: 0291 - 141.16-0000 Census Traci I Block: i Alternate APN: Township-Range-Sect: Legal SooklPage: Legal Lot: Legal Block: Market Area: NelghborCode: owner Transfer Information: Recording)Sals Date: I Safe Price: Document #: Last Market Sale Information; Reccrding/Sele Date: / ' Sale Pare: Sale Type: Document #: Deed Type: Transfer Document M New Construction: Title Company: Lender: Seller Name: Prior Sale Information: Prior Rec /Sale Date: / Prior Sale Price: Prior Doc Number. Prior Deed Type: Property Characteristics: Year Built I Elf: I Gross Area: Building Area: Tot Arq Area: i Above Grade: # of Stories: Other Improvements: , Site Information: Subdivision: Map Reference: Tract #: School District: Munic/Township: Deed Type: lot Mtg Document #: lot Mtg Amountirype: lot Mtg Int. Raterrype: 1st Mtg Document #: 2nd Mfg Amouni/Type: 2nd Mtg Int. Rate/Type: Price Per SgFt: Multi/Split Sale: Prior tender; Prior 1 at Mtg Amt/Type: Prior 1 at Mtg Rate/Type: 18 -DS/ REDLANDS Total Rooms /Offices: Garage Area: Total Restrooms: Garage Capacity: Roof Type: Parking Spaces: Roof Material: Heat Type: Construction: Air Cond: Foundation: Pool: Exterior wall: Quality: Basement Area: Condition: EXHIBIT http: // pro ,realque,ot.comljsplreport,jsp? &client =& action = confirm &type= getreport&recordno... 614r2,009 0.50 VACANT Zoning: Acres: ^o eo County Use: LAND (0000) Flood Zone: Lot Area: 392,040 State Use: Flood Hanel: Lot W ilthlDepth: x She Influence: Flood Panel Date: Commercial Units: Sewer Type: Land Use: VACANT LANDBUiiding Class: Water Type: (NEC) Tax information: Total Value: Assessed Year: Property Tax: Land Value: Improved %: Tax Areal 5000 Improvement Valie: Tax Year: Tax Exemption: Tote) Taxable Value: Lelesi Recording: 015927 12009 EXHIBIT http: // pro ,realque,ot.comljsplreport,jsp? &client =& action = confirm &type= getreport&recordno... 614r2,009 H TERRA Real Estate Services Valuation ^ Consulting OI AY UUA[YGY.LIIIW °OYIi. S.1 /2, Sec. 11, T.1S.,R.3W., S.B.B.&M. city of Redlands 0241— 14 To% Rate Area 5000 I � r.ar I I Ia ii 1 a YnY Yc. .3 4 Ili ,z i ,6 3 4C O <f , li 1.52 AF 11 .1t. I[.SS Ac. I` I L t I 01 ( m MUM ] AC li lF A . I R 4iA1f •A• (C 0 42150 1- i -100> AL AON..0*'4 Yap APRIL 2003 TAS 5R.3 Sec. 10 Book 0241 Page 14 T.iS., R.3Yf. San Bernardino County CoUbJEU1 ASSESSOR PARCEL MAP CHURCH STREET FLOOD CONTROL PARCEL, REDLANDS^ 9 1 I o z ,9 1 13 8.48 AC. I SEE 4 �' 1 ,z � 9.77 AC. i CoUbJEU1 ASSESSOR PARCEL MAP CHURCH STREET FLOOD CONTROL PARCEL, REDLANDS^ 9 Association of California Water Agencies (� r(1�� p�(� (eadei -shil) i�(I\'Ocacv lnfl pima( li Since 1910 WLSl�OVED NOV 0 3 200' Date: OCTOBER 28, 2009 East 011ey Water District TO: ACWA MEMBERS FROM: TIM QUINN, EXECUTIVE DIRECTOR SUBJECT: NOTICE REGARDING PROCEDURES FOR UPCOMING ACWA OFFICER ELECTIONS The following information is provided so ACWA member delegates attending the Fall Conference will be aware of the procedure to be used regarding the nomination and election of ACWA officers during the conference. • The Noininating Committee will present its report during a general session meeting immediately following the luncheon on Wednesday, December 2, 2009. • Floor nominations will be called for immediately following the report. If there are no floor nominations, the election will proceed with a voice vote. • If there are floor nominations, ballots will immediately be prepared and delegates can pick -up a ballot at the ACWA registration desk in the Atlas Foyer at the Town and Country Resort and Convention Center following the general session. • If a paper ballot is required, the signed official ballot must be returned to the - ballot box at the ACWA registration desk prior to 9:00 a.m., Thursday, December 3, 2009. • Paper ballots will be counted and the election results announced during the general session immediately following the luncheon on Thursday, December 3, 2009, RF,MINDERS: Each regular member agency is entitled to one vote. Please designate your voting designee on the proxy form attached and fax or email the form to Jan Jennings, fax 916 -554 -2330 or janj @acwa.com. Anyone nominated from the floor must have a resolution of support from the ACWA member agency on whose board the nominee serves, and it must be signed by an authorized signatory of that board. (If the resolution is not on file at the ACWA office prior to the conference, one must be presented upon nomination at the general session.) If you have any questions regarding the information outlined above, please contact Jan Jennings, Director of Administration, at the ACWA -office for clarification. Association of California Water Agencies 910 K Street, Suite 100, Sacramento, California 95814 -3577 916/441 -4545 FAX 916/325 -4849 Hall of the States 400 N. Capitol St., N.W., Suite 357 South, Washington, D.C. 20001 -1512 202/434 -4760 FAX 202/434 -4763 www.acwa.com FAX ASSOCIATION OF CALIFORNIA WATER AGENCIES PROXY FORM ACWA GENERAL SESSION WEDNESDAY, DECEMBER 1, 2009 AND, IF NECESSARY, THURSDAY, DECEMBER 2, 2009 TO: JAN JENNINGS FAX NUMBER: 916 -554 -2330 THE PERSON DESIGNATED BELOW WILL BE ATTENDING THE ACWA GENERAL SESSION ON WEDNESDAY, DECEMBER 1, 2009, AND, IF NECESSARY, ON THURSDAY, DECEMBER 2, 2009, AS OUR VOTING :DELEGATE: SIGNATURE OF DELEGATE: PRINTED NAME OF DELEGATE: AGENCY: TELEPHONE NUMBER: FAX NUMBER: E.-MAIL ADDRESS: Ll EC yE Randy A. Record AUG � � 200q August 26, 2009 Dear Robert E. Martin, After considerable thought and deliberation, I have decided to seek the position of Association of California Water Agencies (ACWA) Vice President in the upcoming election. The Boards of Directors of Eastern Municipal Water District and Metropolitan Water District of Southern California, both of which I am a member, have adopted resolutions nominating and supporting me for this important position. I believe my experience as a southern California farmer and water district board member have prepared me well for the challenges associated with this important position. I spent much of my youth working on my family's dairy farm; after graduating from college I farmed field crops, vegetables, tree crops and vines with well water, imported water and recycled water. I have experienced plentiful, affordable water and I have experienced insufficient and cost- prohibitive water. I have no doubt that California has plentiful water to meet the needs of our environment, our farms and our homes. I also have no doubt that if we are to have access to this water the leaders of California must create change in infrastructure, governance and life -style to ensure that our state's future is not limited by inadequate or unaffordable water. We find ourselves at a critical moment in water history. I want to be involved in the discussion and decision making of water policy development so that generations to come will understand that when the challenge was the greatest the leadership stepped forward to meet that challenge. If you, individually or as a larger group, plan to endorse a candidate I respectfully request that you consider me as your choice for ACWA Vice President. Yours truly, ld. Randy Record enclosure Board member Eastern Municipal Water District Board member Metropolitan Water District of Southern California Board member Association of California Water Agencies Board member The Bank of Hemet SC:HOOILL0 LLEGE 1952 RESUME' RANDY A. RECORD 1957 -1966 Primary, elementary, junior high school - San Jacinto Unified School District 1966 -1970 High school education - San Jacinto High School 1976 DECEMBER B.S. Ag Management - Cal Poly San Luis Obispo WORK EXPERIENCE! 1990 -- present 2007 -- present Founding partner Paso de Record, wine grape vineyard, San Miguel 2003 -• present Board member, Bank of Hemet 1992 - present Founding partner De Anza Ranch,.Star Ruby grapefruit grove, Hemet 1988 -• present Partner McCleish Group, land development, San Jacinto 1977 JANUARY- 2008 Founding partner R.G.R. Farming Company, San Jacinto. Alfalfa, wheat, oat, California Alfalfa and Forage Association barley, field corn, onion, potato, carrot, bell pepper production ELECTED/APPOINTED PUBLIC AGENCY POSITIONS 2008 -• present Chairman ACWA Federal Affairs Committee 2004 -• present Member Riverside County Water Task Force, founding chairman. 2003 - present Board member Metropolitan Water District of Southern California; chairman Engineering and Operations committee, vice.chairman Real Property and Asset Management committee. 2003-2007 Board member, Center for Water Education. 2001 -- present Board member Eastern Municipal Water District, board president 2003.2005. 1998--2000 Member, Eastern Municipal Water District Reclamation Advisory Committee 1995--1997 California Potato Research Advisory Board PROFESSIONAL ASSOCIATION MEMBERSHIP 1990 -- present Western Growers Association 1990 - present Riverside County Farm Bureau, board of directors 1996 - 2006 2006 -- present Water Education Foundation 2002 -• present Member, past president, Hemet /San Jacinto Action Group 2005 -- present Monday Morning Group of Western Riverside County 1,998 -.2004 California Alfalfa and Forage Association 1115091 F ROGE]RS, ANDERSON, P✓IALODY & SCOTT, LLP CARTIPIED PUBLICACCOUNTANTS November 19, 2009 To the Senior Management, To the Board of Directors East Valley Water District JAY H. ZERCHER, C.P.A ROBERT B. MEMORY, C.P.A. PHILLIP H WALLER, C.P.A BRENDA L. ODLE, C.P.A TERRY P. SHEA, CF.A KIRK A. FRANKS, C.P.A MATTHEW WILSON, C.P.A SCOTT W. MANNO, C.P.A. LE: ENA SHANBHAG, C.P.A. NANCY O'RAFFERTY, C.P.A BRADFERD A. WELESIR, C P.A JENNY LIU, C.P.A. TIMOTHY P. HORN, C P A. KATIE L. MILLSOM, C.P.A JOHN J. BADIA, C.P.A JONATHAN R. KUHN, C.P.A. BRADFORD L ROCKABRAND. C.P A. PAPA MATAR THIAW, C.P.A. We have audited the financial statements of the business -type activities, of East Valley Water District for the year ended June 30, 2009. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and, if applicable, Government Auditing Standards and OMB Circular A -133, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 7, 2009. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit i= indinos Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by East Valley Water District are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year ended June 30, 2009. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the District's financial statements were: Investment estimates provisions for GASBS No. 31, Accounting and Financial Reporting for Certain investments and External Pools, which require governmental entities to report certain investment 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. We evaluated the key factors and assumptions used to develop the fair values in determining that it is reasonable in relation to the financial statements taken as a whole. MEMBERS AMERICAN INSTITUTE OF CFRTIFIED PUBLIC ACCOUNTANTS FCPS THE AICPA ALLIANCE FOR CPA FIRMS VANIR TOWER • 290 NORTH "D" STREET • SUITE 300 SAN BERNARDINO, CA 92407 CALIFORNIA SOCIETY OF (909) 889 -0871 • (909) 824.6736 • f'AX (909) 889 -536 CERTIFIED PUBLIC ACCOUNTANTS Websrte www.ramscpa.nef To the Board of Directors East Valley Water District November 19, 2009 Page 2 Capitalization of purchased or constructed assets by the District are recorded at costs. Assets contributed to the District are recorded at the estimated costs. The estimated costs, determined by the District are the amount the District would have to pay for the development of the comparable facility. We evaluated the key factors and assumptions used to develop the assets estimated lieves and values in determining that balances presented are reasonable in relation to the financial statements taken as a whole. New Pronouncements adopted by the District implementing GASB Statement No. 45, changes the accounting and financial reporting used by local government employers for postretirement benefits other than pensions. We evaluated the key factors and assumptions used to develop the estimated liabilities and expenditures determined the values presented are reasonable in relation to the financial statements taken as a whole. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. Material misstatements detected as a result of audit procedures corrected by management are as follows: (1) Recorded additional interest receivable on investment accounts. (2) Reclassified capital assets expensed during the fiscal year. (3) Recorded additional GASB 45 Post Retirement Liability. (4) Recorded additional depreciation expense for the year ended June 30, 2009. (5) Revenue recognition, closing the respective revenues / contribution to unrestricted fund balance (restricted fund balance) respective of the donated stipulations. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated November 19, 2009. To the Board of Directors November 19, 2009 East Valley Water District Page 3 Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves appiication of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues Statement on Auditing Standards No. 112 — Communicating Internal Control Related Matters Indentified in an Audit. A. Defines the terms of significant deficiency and material weakness. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that result in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. E3. Provides guidance on evaluating the severity of control deficiencies identified in an audit of financial statements. A control deficiency exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect misstatements on a timely basis. C. Requires auditor to communicate, in writing, to management and those charged with governance, significant deficiencies and material weaknesses identified in an audit. To the Board of Directors November 19, 2009 East Valley Water District Page 4 Statement on Auditing Standards No. 114 — The Auditor's Communication with those Charged with Governance Matters to be communicated: A. Auditor responsibilities under Generally Accepted Auditing Standards (GAAS) — (engagement letter should be addressed to those charged with governance). B. Planned scope and timing of the engagement (assists those charged with governance in better understanding the consequences of the auditor's work for their oversight activities). C. Significant findings from audit — use letter similar to SAS 61, Communication with Audit Committee's letter. The overall importance of SAS 114 is to stress the importance of two -way communication between those charged with governance of East Valley Water District and the auditors of Rogers, Anderson, Malody & Scott, LLP. We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. This information is intended solely for the use of Board of Directors and management of East Valley Water District and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, ROGERS, ANDERSON, MALODY & SCOTT, LLP EAST VALLEY WATER DISTRICT REPORT ON AUDIT JUNE 30, 2009 AND 2008 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, 2009 and 2008 A 14-15 Statements of Revenues, Expenses and Changes in Net Assets for the years ended June 30, 2009 and 2008 B 16-17 Statements of Cash Flows for the years ended June 30, :2009 and 2008 C 18-19 Notes to Financial Statements 20-44 Auditor's Report on Supplementary Information 45 Statements of Revenues, Expenses and Changes in Net Assets - Water Department 1 47-49 Statements of Revenues, Expenses and Changes in Net Assets - Sewer Department 2 50-51 Capital Assets 3 52-55 EAST VALLEY WATER DISTRICT TABLE OF CONTENTS INDEX Capital Assets Increases and Decreases Unredeemed Bond Coupons - Retired Debt Principal and Interest Repayment Schedule - Certificates of Participation - Series 2001 Principal and Interest Repayment Schedule - Certificates of Participation - Series 1996 Principal and Interest Repayment Schedule - 2004 Project Installment Sale Note Principal and Interest Repayment Schedule - Department of Water Resources Construction Loan Principal and Interest Repayment Schedule - 2006 Project Installment Sale Note Statement of Net Assets Comments Water Operations Sewer Operations Page 2 of 2 Exhibit/ Schedule Page 4 57 -61 5 M i7 0 9 10 62 63 M 65 M. 67 68-73 74-75 76-77 EAST VALLEY WATER DISTRICT HISTORY AND ORGANIZATION JUNE 30, 2009 AND 2008 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. DIRE =CTORS WATER DISTRICT Donald Goodin President George E. "Skip" Wilson Vice President Kip E. Sturgeon Matt Le Vesque James Morales, Jr. -11- PUBLIC FACILITIES CORPORATION Kip E. Sturgeon President Vacant 1st Vice President Matt Le Vesque 2nd Vice President Robert E. Martin Secretary Brian W. Tompkins Treasurer EAST VALLEY WATER DISTRICT HISTORY AND ORGANIZATION JUNE 30, 2009 AND 2008 MANAGEMENT Robert E. Martin General Manager /Secretary Brian W. Tompkins Chief Financial OfficerfTreasurer PROFESSIONAL CONSULTANTS General Counsel for the District is the firm of Brunick, McElhaney & Beckett. -2- f, I ROGERS, ANDERSON, MALODY & SCOTT, LLP 0FR77FIEO PU&ICACCOUNTAN S Board of Directors East Valley Water District 3654 East Highland Avenue San Bernardino, California 92346 INDEPENDENT AUDITOR'S REPORT JAY H ZERCHER, C P A ROBERT B. MEMORY. C P.A. PHLLLIPH WALLER. CP.A BRENDA L. ODLE. C P.A TERRY P. SHEA. C PA KIRK A. FRANKS. C P A MATTHEW B WILSON, C P A SCOTT W MANNO, C P A LEIiNA SHANBHAG. C PA NANCY 0 RAFFERTY. C P A BRADFERDA WELEBIR, C.P.A JENNY LIU, C P.A TIMOTHY P. HORN. C P A KATIE L MILLSOM. C.P A JOHN J. BADIA, C P A JONATHAN R. KUHN. C P A BRADFORD L ROCKABRAND. C P A PAPA MATAR THIAW. C P A We have audited the accompanying statements of net assets of East Valley Water District as of June 30, 2009 and 2008, and the related statements of revenues, expenses and changes in net assets and cash flows for the years then ended. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America, the State Controller's Minimum Audit Requirements for California Special Districts, and the standards applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of East Valley Water District as of June 30, 2009 and 2008, and the results of its operations, changes in net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America, as well as accounting systems prescribed by the State Controller's Office and state regulations governing special districts. In accordance with Government Auditing Standards, we have also issued our report dated November 19, 2009, on our consideration of the East Valley Water District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PCPS THE AICPA ALLIANCE FOR CPA FIRMS CALIFORNIA SOCIETY OF CFNTIFIED PUBLIC ACCOUNTANTS VANIR TOWER • 290 NORTH "D' STREET • SUITE 30C SAN RERAIARDINO. CA 92,101 (909)889.0877 • (909 +824 -6736 • FAX,9091 889 -5 3 6 1 -3- Wot>snv r: r,,.1amscfa.,0r The information identified in the accompanying table of contents as Management's Discussion and Analysis and the required supplementary information on page 46 is not a required part of the financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. November 19, 2009 Q� � f Plq,6p Jo d /M4z_ pp y Q f U?T L L P FA East Valley Water District 3654 East Highland Avenue, Suite 18, Highland, CA 92346 Serving Our Community for Over 50 Years R0. Box 3427, Sari Bernardino, CA 92413 BOARD OF DIRECTORS George E. 'Skip' Wilson President Matt Le Vesque Vice President Kip E. Sturgeon Director James Morales. Jr Director MANAGEMENT'S DISCUSSION AND ANALYSIS Lacy Melmberg Director Robert E. Martin General Manager Brian W. Tompkins Chief Financial Officer Ronald E. Suchwald District Engineer 'The District 'The East Valley Water District (EVWD) is a California Special District established under section 30000 at seq. of the California Water Code. The District is engaged in pumping, treating and distributing water to its customers, as well as maintaining a collection system for residential and commercial wastewater that is delivered for treatment at a plant owned by the City of San Bernardino Water Department. The District serves the City of Highland and portions of the City of San Bernardino and the County of San Bernardino in California. The Basic Financial Statements East Valley Water District is a special - purpose: government engaged in activities that are supported exclusively by user charges. As such, the District's financial statements are presented in the format prescribed for proprietary funds by the Governmental .Accounting Standards Board. The following financial statements for the years ended June 30, 2009 and 2008 (fiscal years 2008 -2009 and 2007 -2008) consist of three interrelated statements designed to provide the reader with relevant, understandable data about the District's financial condition and operating results. They are the Statement of Net Assets, the Statement of Revenues, Expenses and Changes in Net Assets, and the Statement of Cash Flows. The Statement of Net Assets presents the District's assets and liabilities and the difference, or net, between what is owned and what is owed as of the last day of the District's fiscal year. The Statement of Revenues, Expenses and Changes in Net Assets describe the financial results of the District's operations for the years reported. These results, or changes in net assets, are the increases or decreases in the bottom line of the Statement of Net Assets. The Statement of Cash Flows (direct method) conveys to financial statement users how the District managed cash resources during the year. This statement converts the Change in Net Assets presented on the Statement of Revenues, Expenses, and Changes in Net Assets into actual cash provided by or used for operations. The Statement of Cash Flows also details how the District obtains cash through financing and investing activities, and conversely, how cash is spent for these purposes. Administration (909) 8854900, Fax (909) 889 -5732 • Engineering (909) 888 -8986, Fax (909) 383 -1481 Customer Service (909) 889 -9501, Fax (909) 888 -6741 • Finance (909) 381 -6463, Fax (909) 8813.6741 -5- EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS Summary Financial Information and Analysis Financial Condition During the year ended June 30, 2009, the District's capital assets increased by $4.2 million, while total assets increased by $0.74 million, a relatively small change following a five year period during which the District's utility plant in service grew from $78.4 to $109.2 million, and total assets increased from $91.8 to $125.7 million. Utility plant additions during this period included a 36 ", inter -zone treated water pipeline, purchase of land for future perchlorate treatment plants, installation of two mobile treatment units, and the addition of a new well. Condensed Statement of Net Assets (in millions) 6130109 9.1 3.5 113.6 .3 126.5 i 93.4 1.1 During the 2008 -09 fiscal year, capital asset increases were funded by rate increases and draws from restricted cash and investments. These restricted funds decreased by 39% to $875,489 as construction loan proceeds were used to finance various projects. The District expects to exhaust the remaining funds during 2009 -10 in order to continue design of its surface water treatment plant upgrade. Current assets also decreased $1.2 million, or 12 %, as the District paid off prior year contractual obligations related to mobile treatment units. As a result, the current ratio at June 30, 2009 is 1.5:1 compared to 1.7:1 at the end of the previous fiscal year. The District's Net Assets totaled $99.7 million at the end of fiscal year 2009, a $2.8 million (3 %) increase over net assets at the end of the previous fiscal year. The $2.8 million included operating income of $1.9 million, net non - operating expenses of $0.9 million, and net contributions of cash and infrastructure from developers and grants from other agencies valued at $1.8 million. $93.3 million of the $99.7 million (93.6 %) in Net Assets at June 30, 2009 was invested in capital assets with the remaining $6.3 million classified as unrestricted. The District Board of Directors has designated $2.1 of the $6.3 million in Unrestricted Net Assets as an emergency reserve that can only be spent with authorization from the Board. The increase in net assets of $2.8 million, combined with a decrease in outstanding debt, caused the District's debt to equity ratio to improve from 29.7% to 26.7 %. EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS Activities and Changes In Net Assets Water Operations East: Valley Water District produced and sold 21,660 acre -feet of water during the 2008 -2009 fiscal year, 20 acre feet more than in the prior year. This very small increase in sales volume combined with a rate increase of 11% effective in December 20013, resulted in a 10.6% increase in water sales overall to $15.0 million. Total water operating revenues were $15.7 million, a 7.8% increase over the prior fiscal year. Water department operating costs, before general and administrative expenses, rose 18.4% to $6.9 million. After Administrative and General costs of $4.7 million, and depreciation of $2.5 million, water department operating income was $1.6 million. Various factors affected water department operating costs in 2008 -2009. The most significant increase in water operating expenses was in the Production cost centers of Source of Supply, Pumping, and Treatment. Combined, Production costs rose nearly $850 thousand, or 20 %, to $5.0 million. 'The most significant factors in the increase were Contracted Treatment and Labor. Contracted water treatment utilizing mobile treatment units rose from $0.3 million to just under $1.0 million. This was due to a scheduled increase in treatment rates from $219 to $480 per acre -foot, and the addition of a nitrate unit at a second site also being Operated at a rate of $480 per acre -foot. The two units treated 574.2 and 1,398.09 acre -feet respectively during 2008 -09. Two more units at the District's plant 40, treating for Nitrates and also Uranium, are expected to be permitted in the fall of 2009 and result in Contracted Treatment costs of approximately $1.4 million for the 2009 -10 fiscal ,year. -7- Production labor rose 15% as the District attempted to keep pace with surrounding agencies in paying their state certified production personnel. These wages are rising industry-wide as agencies struggle to replace experienced operators who are retiring. Power costs fell for the second consecutive year, 5% in 2008 -09, where they had averaged 13% increases in the previous 7 years. Water Dept, Operating Revenue versus Expenses 17,000,000 16,000,000 15,000 000 _ 14,000 000 i- 13,000000 12.000,000 11,0000 000 10,000 000 8,00000 000000 6,000,000 7,000,000 6.000,000 2006 2007 2008 2009 — Revenue -- Expenses Sewer Operations Sewer operating revenues consist of System Charges and Treatment Charges. System Charge rates are set by the District to cover the cost of maintaining the District's wastewater collection system and to cover a portion of Administrative and General expenses. Treatment Charge rates are established by the City of San Bernardino Water Department, which treats the wastewater produced by the District's customers — the District has no sewer treatment facilities. All sewer treatment revenues collected by the District are directly offset by payments to the City of San Bernardino Water Department, therefore, sewer treatment has no net effect on the District's operating results. EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS Sewer operating revenues increased to $9.1 million (5.2%) due primarily to an increase in the District's sewer System rates in December 2008. Decreased water consumption by commercial customers had a slight effect counter to the rate increase as these customers are billed for their use of the sewer system based on units of water used. Sewer department operating costs consist of wastewater collection line maintenance, and treatment charges paid to the City of San Bernardino Water Department. During 2008 -09 these costs increased 3.1 % to $6.1 million. After Administrative and General costs of $2.0 million, and depreciation of $0.6 million, sewer department operating income was $0.4 million. Collection line maintenance increased by 35% as the District continued its five year implementation of new mandates to video inspect, assess, and schedule for repair or replacement, if necessary, all of its sewer mains. Labor is the biggest factor in the increase as a two- person crew formed to perform the video inspection, was utilized for the entire year. As of June 30, 2009, about 27% of mains had been inspected and assessed; contracted repairs on problem spots identified will begin in 2009 -10. Sewer Dept. Operating Revenue versus Expenses 10,000,000 _. 8,000,000 6,000,000 4,000.000 2,000,000 2008 2007 2008 2009 Revenue — Expenses Administrative and general costs increase 14.1% overall to $6.7 million. Significant changes in general and administrative costs included: 1) Year 2 of a phased implementation of an independent salary survey which resulted in significant increases for many salary classifications, 2) Increased pension contributions due to increased wages, and an increase in the percent -of- payroll rate used to calculate pension contributions, 3) Recognition of expenses related to accrued post - employment benefits other than pensions (GASB 45), 4) Increased administrative consultant fees for monitoring federal and state legislation Non- Operating Activities The District's net non - operating expense of $878 thousand reflects a 217% decline in non- operating activity. This deficit was the result of a decrease in non - operating income combined with a substantial increase in recognized non - operating expenses. Investment earnings decreased as yields on investments continued to fall. The Apportionment rate paid by the California Local Agency Investment Fund fell by more than half, from 3.11% to 1.51% during the fiscal year, while the decrease in yields on Treasury and Agency bonds purchased for the District's portfolio was very similar. The primary factor for the rise in non - operating expenses is the recognition of all debt related interest expense on the District's Statement of Revenue and Expenses, where in prior years a significant portion of the interest expense had been capitalized as project costs. The District paid interest of $1,094,926 during the 2008- EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS 09 fiscal year, all of which is shown as non - operating expense, while in the prior year, $403,844 of $1,180,310 in interest costs were capitalized, leaving $766,466 to be shown as expense. Condensed Statement of Revenue, Expenses and Changes in Net Assets (in millions) 15.7 (14.3) 9.1 (8.7) .4 (1.2) .8 1.8 ( 8) 2.8 Capital Contributions and Transfers Dedicated infrastructure and capacity fees received from developers decreased 61% from the prior year as the developers slowed their work in progress during the economic: downturn. Final grant funds were also received as a FEMA assisted canal replacement was completed. The canal is owned 50% by the District and 50% by a controlled mutual water company, therefore, matching fund contributions from, and an asset transfer to, the water company were recorded in the current and prior fiscal years as the project progressed. 0 Categories of Net Assets The District is required to present its net assets in three categories: Invested in Capital Assets, Restricted, and Unrestricted. Invested in Capital Assets At June 30, 2009, Invested in Capital Assets included Utility Plant in Service and Construction in Progress of $159.1 million, less Accumulated Depreciation of $45.6 million, for a net utility plant amount of $113.5 million. This amount is reduced by $21.3 million in Long -Term Debt, net of discounts, refunding deferrals, and unspent debt issue proceeds of $1.1 million, to derive an invested in Capital Assets balance of $93.3 million. Restricted The District had no restricted net assets at June 30, 2008 or 2009. During the 2008 -09 year the District did receive capacity fees of $437,211 that by law are restricted for use on plant expansion capital projects, or debt service on such projects. However, expenditures for these purposes exceeded the fees collected resulting in no Restricted Net Assets at year -end. Unrestricted EVWD had unrestricted Net Assets of $6.3 million at June 30, 2009. Of that amount, the board of directors has designated $2.1 million as an emergency reserve. Capital Assets The District spent approximately $7.7 million for expansion or replacement of property, plant, and equipment during 2008 -2009, and another $367 thousand in infrastructure was installed and donated by developers. These amounts are reflected in Utility Plant, or as additions to Construction In Progress, in the accompanying financial statements. EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS Following is a discussion of the facilities and equipment constructed and purchased. Placed In Service During the 2008 -2009 fiscal year the District received dedication of 2,452 feet of underground water pipeline. No sewer lines or other water facilities were dedicated by developers as the economy has slowed development substantially. District crews and contractors also completed work on: • Plant 151 — a 1,000 foot well capable of producing 2,500 gallons of water per minute • 5,612 feet of 36" pipeline to replace a century old intake canal which delivers water to the District's surface water treatment plant • Replacement of 3,140 feet of 8" mains serving residential areas • Installation of 4,126 feet of 20" treated water main connecting Plant 107 to 36" Sterling Ave inter -zone transfer pipeline Utility Plant in Service — June 301h (in millions) 11.7 8.6 8.5 8.1 76.6 71.9 9.7 9.7 ! 23.4 22.9 1.2 1.3 7.1 6.8 38.2 129.3 mill Construction In Progress (CIP) Construction in progress decreased $1.9 million to $16.1 million between June 30, 2008 and June 30, 2009. With approximately 70 jobs in progress, additions to CIP totaled $7.9 million, while $9.8 million was transferred out of CIP in the form of completed jobs that were either capitalized orexpensed. More than 80% of costs in CIP at June 30, 2009 were incurred on 3 projects. These are: • Planning and design of new headquarters project. Majority of cost in project is for the purchase of land. • Installation of modular uranium and nitrate treatment facilities at the District's Plant 40 Design of new lower pressure zone treatment plant (Plant 150) Future Capital Improvements - Water The District's ability to meet regulatory requirements and to meet increased demand on system capacity continue to be the driving forces by which District management develops long -term capital plans. New water regulations, known as Stage 2 of the DBP Rule, has placed stricter limits on the disinfectant by- products discharged from the District's only surface water treatment plant — Plant 134. This rule will require retrofitting the plant's treatment technology to membrane filtration. In addition, the District plans to increase this plant's capacity to 8mgd in order to improve supply to three pressure zones. The deadline for compliance with new DBP Rule is October 2012, and the cost of the plant update / expansion is estimated at $16 million. EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS Future water capacity challenges were addressed in the District's Water Master Plan (WMP) update issued in January 2008. The primary challenge identified in the WMP is to transport water from wells in the District's lower zone, where water is plentiful, to higher - pressure zones where it is expected large parcels of land will be developed, creating a demand for water that will exceed supply to those zones. Key facilities to be built over the next five years to implement phase one of interzone water transferability are: • Plant 150 — lower zone treatment plant • Pipelines connecting lower zone wells to Plant 150 • Pipelines to complete a connection between Plant 150 and Plant 40 in the Intermediate pressure zone • Plant 40 boosters Future Capita) Improvements - Wastewater The District is currently inspecting and assessing all 250 miles of its wastewater collections lines in accordance with California State Water Resources Control Board order no. 2006 -0003. Once the pipelines have been assessed, those lines that are at the most risk of sewer spills or seepage that can contaminate surface or ground waters will need to be repaired or replaced. Very preliminary estimates of the costs to repair or replace, in the next five to ten years, those mains that are found to be cracked or undersized range from $7 to $17 million. Long Term Debt / Credit The District's long -term debt consists of two series of Certificates of Participation (COPS), two privately placed Installment Sale Agreement (ISA) contracts with a -11- bank, and a construction loan from the California Department of Water Resources. Outstanding balances as of June 30, 2009 were as follows: 1996 COPS $ 615,000 2001 COPS 6,685,000 DWR Construction Loan 145,385 2004 Install Sale Agrmt 8,455,152 2006 Install Sale Agrmt 5,428,578 $21,329,115 The DWR loan is ultimately the obligation of property owners within the Arroyo Verde Assessment District, previously a small mutual water company within the District's service area. The District, as loan administrator, collects assessments from the owners and makes semi-annual payments on the loan. Complete amortization schedules and interest rate information are shown on schedules six through ten of the attached Supplementary Information. All scheduled debt payments were timely made during the fiscal year. Further, the 1996 series COPS will be fully amortized in December 2009. Outstanding Long-Term Debt June 30th 35,000,000 30,000.000 25.000,000 20.000,000 15,000,000 10.000.000 5.000,000 2006 2007 2008 2009 0 199 COPS 02001 COPS 020N ]$A ■20061SA In January 2009 Standard & Poors upgraded its rating on the District's COPS from an A to a AA -, and Moody's affirmed its A2 rating in May 2009. Dun & Bradstreet, based on audited financial statements and creditor input, also rates the District. The EAST VALLEY WATER DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS rating given by D &B is currently 5A1 accompanied by a financial condition assessment of 'strong', which is no change from previous years. The District has applied for California State Revolving Fund (SRF) loans to finance the Plant 134 technology upgrade, and the construction of the Plant 150 treatment facility. To the extent these facilities are not financed through SRF loans, the District plans to combine any unfunded balance with a list of other projects and issue COPS. New Regulation Water The District continues to monitor proposed regulations related to Radon, issued by the EPA in May 2000. Many water agencies have challenged some of the findings in the proposal, and the District is sponsoring proposed changes that would ease treatment requirements. Rate Increases In August 2008, an independent financial consulting firm issued water and sewer rate studies of the District covering fiscal years 2008 -09 through 2017 -18. The studies incorporated the District's Capital Improvement Program as of June 30, 2008, future operating costs adjusted for inflation, debt service expenses, and the funding of two reserves, a Repair and Replacement Reserve, and an Operating Reserve. A supplemental study, incorporating tiered rates and an updated Capital Improvement Program, will be commissioned in October 2009. No rate increases are planned for fiscal year 2009 -10, however, a multi -year schedule of increases will be necessary to finance the treatment and upgrade facilities mentioned above. -12- Contacting the District's Financial Management This financial report is designed to give our customers / ratepayers and creditors and investors a general overview of the District's finances, and to demonstrate the District's accountability for money it receives, and stewardship over facilities it maintains. If you have questions about this report, or need additional information, contact the District's Finance Department at 3654 E. Highland Ave, Suite 18, Highland, California 92346, or call (909) 381 -6463. THIS PAGE LEFT INTENTIONALLY BLANK -13- EAST VALLEY WATER DISTRICT STATEMENTS OF NET ASSETS JUNE 30 2009 AND 2008 ASSETS Current Assets: Cash in bank and on hand Investment in Local Agency Investment Fund Investment in debt securities Accounts receivable, net Interest receivable Other receivables Inventory Prepaid expenses Total Current Assets Restricted Assets: Cash Investments Total Restricted Assets Noncurrent Assets: Capital Assets: Utility plant in service Less accumulated depreciation Capital assets, not being depreciated /amortized Assessments receivable Deferred charges Total Noncurrent Assets Total Assets 2009 $ 847,475 981,471 3,417,633 1,493,576 39,042 1,076,215 1,111,816 120,083 9,087,311 3,524,394 3,524,394 138,213,633 (45,548,854) 92,664,779 20,909,695 113,574,474 106,906 176,618 113,857,998 $126,469,703 2008 $ 579,294 1,359,534 4,713,445 1,532,029 88,573 829,485 1,020,709 190,829 10,313,898 4,238,124 1,498,435 5,736,559 129,342,141 (42 620,787) 86,721,354 22,616,351 109,337,705 128,282 214,573 109,680,560 $125,731,017 The accompanying notes are an integral part of these financial statements. -14- LIA131LITIES Current Liabilities: Accounts payable - trade Accounts payable - other Retentions payable Accrued payroll and benefits Accrued interest payable Long term debt due within one year Total Current Liabilities Liabilities Payable From Restricted Assets: Customer service deposits Construction deposits Noncurrent Liabilities: Long term debt due after one year Less: Deferred amount on refunding of Certificates of Participation Total Noncurrent Liabilities Total Liabilities NET ASSETS Invested in capital assets Unrestricted Total Net Assets Exhibit "A" 2009 2008 _ $ 1,897,482 556,907 27,935 1 ,132,738 250,850 1,968,695 5,834,607 1,646,990 124,850 1,771,840 19,394,355 $ 2,331,264 637,682 81,884 878,808 264,795 1,871,819 6,066,252 1,611,821 111,500 1,723,321 21,366,431 (255,677) (332,156) 19,138,678 21,034,275 26,745,125 28,823,848 93,342,890 89,593,423 6,381,688 7,313,746 $ 99,724,578 $ 96,907,169 The accompanying notes are an integral part of these financial statements. -15- EAST VALLEY WATER DISTRICT STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS FOR THE YEARS ENDED JUNE 30, 2009 AND 2008 OPERATING REVENUES: Water sales Sewer charges Other charges OPERATING EXPENSES: Water Department: Source of supply Pumping Treatment Transmission and distribution Customer accounts Sewer Department: Wastewater collection Treatment Administration and general Depreciation Total Operating Expenses Operating Income 2009 $ 15,015,408 9,039,158 724,278 24,778,844 608,742 2,961,727 1,420,962 1,403,076 550,500 6,945,007 449,296 5,631,258 6,080,554 6,701,845 3,140,265 9,842,110 2008 $ 13,576,217 8,505,060 1,117,421 23,198,698 438,134 3,005,392 709,406 1,255,931 456,159 5,865,022 333,588 5,561,830 5,895,418 5,913,997 2,991,186 8,905,183 22, 867,671 20,665,623 1,911,173 2,533,075 The accompanying notes are an integral part of these financial statements. -16- NONOPERATING REVENUES (EXPENSE): Investment income Other income Gain (loss) on disposal of assets Interest expense Amortization Income Before Contributions and Transfers CONTRIBUTIONS AND TRANSFERS: Utility plant dedicated Capacity charges Grants Capital contribution from mutual water company (North Fork) Transfer of capital asset (CIP) to mutual water company (North Fork,) CHANGE IN NET ASSETS NET ASSETS - BEGINNING OF YEAR NET ASSETS - END OF YEAR Exhibit `B" 2009 2008 $ 235,826 130,021 (110,944) (1,094,926) (37,956) (877,979) $ 510,361 64,043 (36,983) (776,466) (3 -/,956 _. (277,001) 1,033,194 2,256,074 381,182 437,211 1,754,445 233,410 792,840 1,291,293 1,826,543 367,894 (1,022,033) x,471,577) 1,784,215 2,806,993 2,817,409 5,063,067 96,907,169 91,844,102 $ 99,724,578 $ 96,90'7,169 The accompanying notes are an integral part of these financial statements. -17- EAST VALLEY WATER DISTRICT STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2009 AND 2008 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers Cash payments to employees for services Cash payments to suppliers for goods and services Cash from other sources NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Grant funds received Contributed capital Principal paid on capital debt Interest paid on capital debt Acquisition and construction of capital assets Net proceeds on retired assets NET CASH (USED FOR) CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Interest received from investments Acquisition of investments in debt securities Proceeds from sales of investments in debt securities Loan collections from AVAD property owners NET CASH PROVIDED BY INVESTING ACTIVITIES NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR 2009 2008 $ 24,865,817 $ 23,035,660 (6,447,915) (5,117,280) (13,749,473) (11,979,393) 135,369 46,583 4,803,798 5,985,570 1,736,474 437,211 (1,872,137) (1,035,455) (7,997,967) 4,182 1,518,926 1,291,293 (1,781,471) (1,120,091) (15,626,547) 10,095 (8,727,692) (15,707,795) 268,248 797,637 (2,611,213) (9,741,228) 5,422,568 9,057,262 20,679 20,797 3,100,282 134,468 (823,612) (9,587,757) 6,176,952 15,764,709 $ 5,353,340 $ 6,176,952 The accompanying notes are an integral part of these financial statements. -18- 2009 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income $ 1,911,173 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation Other non - operating income CHANGES IN ASSETS AND LIABILITIES: (Increase) decrease in accounts receivable (Increase) decrease in other receivables (Increase) decrease in inventory (Increase) decrease in prepaid expenses Increase (decrease) in trade accounts payable Increase ( decrease) in accrued salaries and vacation pay Increase (decrease) in customer and other deposits Increase (decrease) in developers' deposits NET CASH PROVIDED BY OPERATING ACTIVITIES RECONCILIATION TO STATEMENT OF NET ASSETS: 3,140,265 130,021 38,453 5,348 (91,107) 70,746 (703,550) 253,930 35,169 13,350 Exhibit "C" 2008 $ 2,533,075 2,991,186 64,043 14,476 (17,460) (20,498) (76,383) 492,224 182,421 19,752 ('197,266 $ 4,803,798 $ 5,985,570 Ending cash and cash equivalents are presented on the accompanying statements of net assets as follows: Current Assets: Cash in !bank and on hand Investment in Local Agency Investment Fund Restricted Assets: Crash 847,475 $ 579,294 981,471 1,359,534 3,524,394 4,238,124 $ 5,353,340 $ 6,176,952 NOM -CASH INVESTING, CAPITAL AND NONCAPITAL FINANCING ACTIVITIES: Utility Plant contributed by developers $ 381,180 Fair value adjustment to debt securities $ (17,109) Transfer cf capital asset (CIP) to North Fork (grant project) $ 1,022,033 Capital contribution from North Fork (grant project) $ 233,410 North Fork stock basis increase from EVWD share of capital contribution (grant project) $ 188,992 The accompanying notes are an integral part of these financial statements. -19- $ 792,840 $ 35,757 $ 1,471,577 $ 367,894 297,884 EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 1: NATURE OF ORGANIZATION AND SUMMARY OF ACCOUNTING POLICIES Nature of Oraanization 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. Reaortina Enter 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 -20- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 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 riot 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, 19139. 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." -21- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 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. -22- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 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 E uivalents 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 aadopted 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. -23- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 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, 2009 and 2008 follows: June 30, 2009 Capital assets, being depreciated /amortized: Water Source of supply plant Pumping plant Treatment plant Transmission and distribution plant General plant Sewer Collection plant General plant Total Balance Balance June 30, 2008 Increases Decreases June 30, 2009 $ 24,384,081 $ 3,164,414 $ 49,811 $ 27,498,684 8,128,316 327,955 - 8,456,271 9,670,415 - 9,670,415 56,109,306 4,692,452 - 60,801,758 4,942,286 248,540 145,283 5,045,543 103,234,404 8,433,361 195,094 111,472,671 22,862,293 3,245,444 26.107.737 $129,342,141 555,279 142,666 697,945 $ 9,131,306 -24- 64,720 64,720 $ 259,814 23,417,572 3,323,390 26,740,962 $138,213,633 EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 2: CAPITAL ASSETS (continued) Capital asset snot being depreciated /amortized: Sewer Land and easements 29,215 - - 29,215 Construction in progress 811,241 125,725 539,743 397,223 840,456 125,725 539,743 426,438 'Total $ 22,616,351 $ 8,116,561 $ 9,823,217 $ 20,909,695 June 30, 2008 Capital as<,;et being depreciated /amortized: Balance Balance Water June 30, 2008 Increases Decreases June 30, 2009 Decreases June 30, 2008 Land and easements $ 3,220,669 $ $ - $ 3,220,669 Intangible plant 20,954 - 20,954 Water stock and rights 1,362,739 188,992 - 1,551,731 Construction in progress 17,171,533 7,801,844 9,283,474 15,689,903_ 21,775,895 7,990,836 9,283,474 20,483,257 Sewer Land and easements 29,215 - - 29,215 Construction in progress 811,241 125,725 539,743 397,223 840,456 125,725 539,743 426,438 'Total $ 22,616,351 $ 8,116,561 $ 9,823,217 $ 20,909,695 June 30, 2008 Capital as<,;et being depreciated /amortized: 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 -25- Balance Balance Water June 30, 2007 Increases Decreases 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 -25- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 2: CAPITAL ASSETS (continued) Capital assets, not being depreciated/amortized: 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 NOTE 3: CASH AND INVESTMENTS Cash and investments as of June 30, 2009 and 2008 are classified in the accompanying financial statements as follows: Statement of Net Assets: Current Assets: Cash in bank and on hand Investment in Local Agency Investment Fund Investment in debt securities Restricted Assets: Cash Investments Total Cash and Investments -26- 2009 2008 $ 847,475 981,471 3,417,633 5,246,579 $ 579,294 1,359, 534 4,713,445 6,652,273 3,524,394 4,238,124 - 1,498,435 3,524,394 5,736,559 $ 8,770,973 $ 12,388,832 Balance Balance Water June 30, 2007 Increases Decreases 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 NOTE 3: CASH AND INVESTMENTS Cash and investments as of June 30, 2009 and 2008 are classified in the accompanying financial statements as follows: Statement of Net Assets: Current Assets: Cash in bank and on hand Investment in Local Agency Investment Fund Investment in debt securities Restricted Assets: Cash Investments Total Cash and Investments -26- 2009 2008 $ 847,475 981,471 3,417,633 5,246,579 $ 579,294 1,359, 534 4,713,445 6,652,273 3,524,394 4,238,124 - 1,498,435 3,524,394 5,736,559 $ 8,770,973 $ 12,388,832 EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE :3: CASH AND INVESTMENTS (continued) Cash and investments as of June 30, 2009 and 2008 consist of the following: 2009 2008 Cash on hand $ 1,750 $ 1,750 Deposits with financial institutions 290,954 170,418 Money market accounts with financial institutions 2,307,325 2,921,929 Investments in LAIF 2,753,311 3,082,855 Investment in debt securities 3,417,633 6,211,880 $ 8,770,973 $12,388,832 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 Tvoe Bonds & Certificates of Participation issued by EVWD U.S. Treasury Bills, Notes or Bonds State Registered Warrants, Notes or Bonds Notes & Bonds of other Local California Agencies U.S. Agencies Negotiable Certificates of Deposits Money Market Mutual Funds & Mutual Funds Collateralized Bank Deposits Local Agency Investment Fund (LAIF) Maximum Authorized Required Maturity limit ( %) Rating _ 5 years None None 5 years None None 5 years None None 5 years None None 5 years None None 5 years 30% None 5 years 15% 2 -AAA 5 years None None N/A None None The California Local Agency Investment Fund (LAIF) is a special fund of the California State Treasury through which local governments may pool investments. Investments in LAIF are highly liquid as deposits can be converted to cash within 24 hours without loss of interest. At June 30, 2009, 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. -27- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30. 2009 AND 2008 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, 2009, the District had the following investments and maturities: Investment LAIF Farmer Mac Federal Farm Credit Bank Federal Home Loan Bank US Treasury Note Fair Value $ 2,753,311 306,376 608,628 1,948,311 554,318 Less Than 1 Year 1 - 2 Years $ 2,753,311 200,056 208,376 1,695,499 554,318 106,320 400,252 252,812 $ 6,170,944 $ 5,411,560 $ 759,384 As of June 30, 2008, the District had the following investments and maturities: Less Than Investment Type Fair Value 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 EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 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 LAIF $ 2,753,311 Farmer Mac 306,376 Federal Farm Credit Bank 608,628 Federal Home Loan Bank 1,948,311 US Treasury Note: 554,318 Minimum Legal Rate Actual Rate N/A N/A N/A AAA N/A AAA N/A AAA 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, 2009 and 2008, the following investments exceeded 5% of the District's total investments: Investment Type LAIF Federal Farm Credit Bank Federal Home Loan Bank US Treasury Note lnvestmerit Type LAIF -- Federal Farm Credit Bank Federal Home Loan Bank US Treasury Note Percentage Invested 2009 44.62% 9.86% 31.57% 8.98% Percentage Invested 2008 _29_ 33.17% 6.59% 38.00% 21.16% EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 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, 2009 and 2008, $32,984 and $405,287 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, 2013. 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, 2009, the carrying amount (at amortized cost) of the pool was $50,784,427,116 and the estimated fair value of the pool was $50,853,707,566. The District's proportionate share of the pool's market value (as determined by LAIF) as of June 30, 2009, was $2,757,067. 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. -30- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30 2009 AND 2008 NOTE 41: LONG -TERM DEBT Long -term debt reflected on the accompanying Statement of Net Assets includes the following: Arroyo Verde Assessment District Construction Loan - Interest at 0 %; maturities through 2031 1996 Refunding Certificates of Participation - Interest from 3.25% to 5.40 %; maturities through 2009 2001 Certificates of Participation - Interest from 4.25% to 5.00 %; maturities through 2020 2004 Project Installment Sale Note - Interest 4.50 %; maturities through 2024 2006 Project Installment Sale Note - Interest 4.95 %; maturities through 2026 Less: Issuance discounts Add: Issuance: premiums Less Current Portion: DWR - Arroyo Verde Construction Loan 1996 Certificates 2001 Certificates 2004 Installment Note 2006 Installment Note Discounts and premium -31- June 30, 2009 145,385 615,000 6,685,000 8,455,152 5,428,578 21,329,115 (3,050) 36,985 June 30, 2008 152,147 1,190,000 7,405,000 8,825,667 5,628,438 23,201,252 (6,711) 43,709 21,363,050 23,238,250 3,381 615,000 750,000 387,375 209,875 1,965,631 3,064 1,968,695 $ 19,394,355 3,381 575,000 720,000 370,515 199,859 1,868,755 3,064 1.871.819 $ 21,366,431 EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 4: LONG -TERM DEBT (continued) The schedule below summarizes changes in long -term debt principal during the years ended June 30, 2009 and 2008. June 30, 2009 June 30, 2008 Additions Payments June 30, 2009 Arroyo Verde Assessment District Construction Loan $ 152,147 $ - $ 6,762 $ 145,385 1996 COPS 1,190,000 - 575,000 615,000 2001 COPS 7,405,000 - 720,000 6,685,000 2004 Project Installment Sale Nate 8,825,667 - 370,515 8,455,152 2006 Project Installment Sale Note 5,628,438 - 199,860 5,428,578 $23,201,252 $ $1,872,137 $ 21,329,115 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 -32- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 4: LONG -TERM DEBT (continued) The aggregate debt service requirements to maturity for all long -term debt as of June 30, 2009 and 2008 is as follows: June 30. 2009 Year Ending June 30. 2010 2011 2012 2013 2014-2018 20'19 -- 2023 2024 -2028 2029 •- 2031 June 30, Year Ending June 30, 2009 2010 2011 2012 2013 2014-2018 2019-2023 2024 -2028 2029 -2031 Principal Interest $ 1,965,631 1,417,157 1,451,632 1,512,500 6,424,015 6,096,333 2,441,560 20,287 $ 21,329,115 Principal $ 1,868,755 1,969,012 1,417,157 1,451,632 1,512,500 6,424,015 6,096,333 2,441,560 20,288 $ 23,201,252 $ 945,499 868,129 805,186 739,493 2,723,657 1,313,806 165,645 $ 7,561,415 Interest 1,035,455 945,499 868,129 805,186 739,493 2,723,657 1,313,806 165,645 $ 8,596,870 Total $ 2,911,130 2,285,286 2,256,818 2,251,993 9,147,672 7,410,139 2,607,205 20,287_ $ 28,890,530 Total $ 2,904,210 2,914,511 2,285,286 2,256,818 2,251,993 9,147,672 7,410,139 2,607,205 20,288 $ 31,798,122 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 $ -0- interest for the year ended June 30, 2009 and $238,179 for the year ended June 30, 2008. -33- NOTE 4: Security EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 LONG -TERM DEBT (continued) Security for debt is as follows: NM Certificates of Participation (Series 1996 Certificates and 2001 Certificates) and 2004 and 2006 Project Installment Sale. SECURITY The District is required to maintain and encumber net revenues, as defined by the Certificates of Participation's Trust Agreement and 2004 and 2006 Project Installment Sale agreements of at least 110% of the District's annual debt service (principal and interest). At June 30, 2009 net water revenues represented 157% 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, 2009 and 2008 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. -34- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30. 2009 AND 2008 NOTE ti: 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 far the highest 12 consecutive months for each year of credited services. -35- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 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 15.890 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, 2009, the amount contributed by the District on behalf of the employees was $940,107 and was equal to the District's required contributions. The required contribution was determined as part of the June 30, 2007, actuarial valuation using the entry age normal actuarial cost method. Three Year Trend Information Annual Pension Percentage of Net Pension Fiscal Year Cost (APC) APC Contributed Obliqation June 30, 2007 $ 601,748 100% 0 June 30, 2008 $ 736,225 100% 0 June 30, 2009 $ 940,107 100% 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, 2006 valuation was a negative $1,353,553. 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, 2006, was 8 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. -36- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 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 2008. 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, 2008 and continuing through the remaining term of the lease. On May 1, 2008, the lease was amended a fourth time. The fourth amendment includes Suites 12, 17, 18 and 19. The amendment did not increase monthly rental rates, therefore rate remains at $11,804 and continues through the remaining lease term expiring April 30, 2010. Total rent expense under this operating lease for the year ended June 30, 2009 and 2008 was $141,648 and $141,648, 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 $30,980 for the year ended June 30, 2009 and $30,93:? for the year ended June 30, 2008. Future minimum rental payments required for all operating leases are as follows: Year Ended June 2009 NOTE 8: COMMITMENTS Basin Water, Inc. - Agreement #1 $ 118,040 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. -37- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30 2009 AND 2008 NOTE 8: COMMITMENTS (continued) Basin Water. Inc. - Aareement #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. - Aareement #1 and Aareement #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. Total contract water treatment for the year ended June 30, 2009 and 2008 was $968,220 and $302,317, respectively. Subsequent to the fiscal year end the District entered into a capital lease commitment. The capital lease has been entered with the CIT Communications Finance Corporation for a telecommunications system. The agreement is for a period of sixty months commencing August 19, 2009 and ending July 19, 2015. The agreement requires monthly payments of $1,124 beginning August 19, 2009. 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. so EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 9: CONTINGENCIES (continued) Through December 31, 2008, the District's share of cleanup costs totaled $26,994. In January 2009, the California Department of Toxic Substances issued a Certificate of Completion relieving the District and other responsible parties of any further financial responsibility. Furthermore, in October 2009, the group of responsible parties formed to fund the cleanup was respectively dissolved. 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, 2009, the District participation in the self- insurance programs of the Authority was as follows: Personal Injury and Property Damage Liability Coverage - General Personal Injury and Property Damage Liability Coverage - Auto Public Officials and Employees Errors and Omissions Liability Limits 10,000,000 per occurrence/ aggregate where applicable 10,000,000 per accident 10,000,000 per wrongful act/ annual member aggregate Employment Practices Liability 10,000,000 per wrongful employment practice / aggregate limits per member included with Public Officials and Employee Errors and Omissions Coverage Employee Benefits Liability 10,000,000 per wrongful act / annual member aggregate Employee Dishonesty Coverage 400,000 per loss Public Officials Personal Liability 10,000,000 per occurrence / annual aggregate per Board Member -39- Deductible $500 (property damage only) $1,000 none none up to $10,000 50% cc- insurance from $10,000 to $50,000 none for amounts greater than $50,000 none none $ 500 EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 10: JOINT VENTURE (continued) Limits Automobile Physical Damage replacement cost (stated value adjusted for depreciation) (on selected vehicles) Uninsured Motorist Bodily Injury 750,000 per accident Coverage Property Coverage 350,000,000 replacement cost for scheduled property if replaced (if not replaced within two years, actual cash value basis) Boiler and Machinery 100,000,000 replacement cost Deductible $2501$500 or $500/$1,000 comprehensive / collision (as elected per vehicle) none $2,000 $1,000 Condensed financial information of the Authority for the year ended June 30, 2008 is as follows: Complete financial statements are available directly from the Authority. The financial information for the year ended June 30, 2009 is not yet available. Total Assets Total Liabilities Total Net Assets Total Liabilities and Net Assets Total Revenues Total Expenses Change in Net Assets NOTE 11: RELATED ORGANIZATIONS $ 71,125,296 $ 48,802,348 22,322,948 $ 71,125,296 $ 35,324,737 30,481,688 $ 4,843,049 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, 2009 and 2008 were $58,295 and $58,295, respectively. M11 EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 11: RELATED ORGANIZATIONS (continued) The District has a construction project in progress ( "North Fork FEMK) 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, 2009, $1,022,033 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. Receivable and payable balances to related entities are as follows: Receivable from: North Fork City Creek June 30, 2009 June 30, 2008 601,940 $ 380,525 31,832 28,583 Payable to: North Fork 486,876 297,884 NOTE 12: POST- RETIREMENT MEDICAL HEALTH CARE BENEFITS During the year ended June 30, 2009, the District implemented GASB Statement No. 45 which changed the accounting and financial reporting used by local government employers for posterriployment benefits other than pensions. Under GASB Statement No. 45, local government employers are required to account for the cost of those benefits using accrual accounting rather than the more common pay -as- you -go basis. This means that each employee's benefit will accrue throughout his or her working lifetime, and that employers will be required to show the annual accruals as a current year expense. The new reporting requirements for these benefit programs as they pertain to the District are as set forth in the following. -41- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 12: POST - RETIREMENT MEDICAL HEALTH CARE BENEFITS (continued) Plan Description The District contributes to the retiree health coverage of eligible retirees and eligible surviving spouses. At retirement, the District provides the minimum employer contribution under the CalPERS Health Program for eligible retirees and surviving spouses in receipt of a pension benefit from CaIPERS. An employee is eligible for this employer contribution provided they are vested in their CalPERS pension benefit and commence payment of their pension benefit within 120 days of retirement with the District. Vesting requires at least five years of service. The surviving spouse of an eligible retiree who elected spouse coverage under CalPERS is eligible for the employer contribution upon death of the retiree. Employees retiring with at least 20 years of District service will receive an additional District contribution through attainment of Medicare eligibility age. The additional contribution is based on the negotiated dollar amount at retirement (currently $500 per month and scheduled to increase to $550 in July, 2009). The surviving spouse of an eligible retiree is eligible for the District's contribution upon the death of the retiree through the spouse's attainment of Medicare eligibility age. Directors who were first elected to office on or after July 1, 1994 shall be eligible to continue to receive health benefits upon termination on a self -pay basis. There is one Director in office prior to July 1, 1994 who is eligible for District paid health care benefits for himself and any covered spouse or dependents. The benefits are payable for his lifetime and the lifetime of any covered surviving spouse. The authority to establish and amend postemployment benefits resides with the District's Board of Directors. CaIPERS issues a publicly available annual financial report that includes financial statements and required supplementary information for the CERBT. That report may be obtained by writing to CalPERS Headquarters, Lincoln Plaza North, 400 Q Street, Sacramento, CA 95811, or on the internet at http: /Iwww.calpers.ca.gov. Funding Policy and Annual Other Postemployment Benefit Costs Contributions requirements of the District are established and may be amended through Board action. The District contributes 100 percent of the cost of current -year premiums for eligible retired plan members and their dependents. The District's annual other postemployment benefit (OPEB) cost is calculated based on the Annual Required Contribution (ARC), an amount actuarially determined in accordance within the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the components of the District's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the District's net OPEB obligation to the plan: Annual required contribution $ 163,799 Contribution made 45,886 Increase in net OPEB obligation 117,913 Net OPEB obligation, beginning of year Net OPEB obligation, end of year $ 117,913 The District's annual OPEB cost, which is equal to its annual required contribution, has been recognized as a part of the operating expenses of the District in the accompanying financial statements. -42- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 12: POST- RETIREMENT MEDICAL HEALTH CARE BENEFITS (continued) The District's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the year ended June 30, 2009 is presented below. The District implemented GASB Statement No. 45 during the year ended June 30, 2009, and therefore information is not available for the prior two years. Plan Year Ended OPEB June 30, 2009 Funded Status Annual Actual OPEB Cost Contribution $ 163,799 $ 45,886 Percentage of OPEB Cost Contributed 28% Net OPEB Obligation $ 117,913 The funded status of the plan as of June 30, 2009, based on the July 1, 2008 actuarial valuation is as follows: Actuarial Accrued Liability (AAL) $ 1,290,086 Actuarial value of assets - Unfunded Actuarial Accrued Liability (UAAL) $ 1,290,086 Funded ratio (actuarial value of assets / AAL) 0% Estimated Covered payroll (active plan members) $ 4,330,000 UAAL as a percentage of covered payroll 30% Actuarial Methods and Assumptions The projection of future benefits for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of occurrence of future events far into the future. Examples include: assumptions about future employment, mortality, and the healthcare cost trend. Actuarially determined amounts, amounts determined regarding the funded status of a plan, and the employer's annual required contributions are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. -43- EAST VALLEY WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 AND 2008 NOTE 12: POST - RETIREMENT MEDICAL HEALTH CARE BENEFITS (continued) Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short- term volatility in actuarial accrued liabilities and the actuarial assets, consistent with the long -term perspective of the calculations. Significant methods and assumptions were as follows: Valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Actuarial assumptions: Investment rate of return Payroll growth Medical trend rates July 1, 2008 Projected Unit Credit Level percentage of payroll 30 years as of the valuation date N/A — no assets 5.00% 3.25% Year 2010 2011-2015 2016-2017 2018+ NOTE 13: FINANCIAL STATEMENT PRESENTATION Medical 9.0%-8.5% 6.0%-8.5% 5.0%-6.0% 5.0% 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. Em NANCY O'RAFFERTY, C P A SRADFE RD A WELESIR, C P A JENNY LIU. C P A TIMOTHY P. HORN. C P A KATIE L MILLSO J. C P A JOHN J. BADIA, C P A JONATHAN R. KUHN. C P A BRADFORD L ROCKABRAND, C P A PAPA MATAR THIAW. C P A Board of Directors East Valley Water District 3654 L=ast Highland Avenue San Bernardino, California 92346 AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The information on pages 47 through 77 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. November 19, 2009 MEMBERS AMERICAN INSTITUTE 01: CERTIFIED PUBLIC ACCOUNTANTS Q0 .r, AN9tr•RJON ItIAl -oDY PCO GL P PCPS THE AICPA ALLIANCE FOR CPA FIRMS CALIPORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS VANIR TOWER • 290 NORTH 'D' STREET • SUITE 300 SAN BERNARDINO. CA 92401 (909)889 -08 71 • (9091824.6736 • FA%,909,889,5361 -45- V/ebs'te +•:: > +o. +gmsepa. net JAY H. C PA � POST AT B MEMORY, C P A PH H. WALLER, C P A XN BRENDA L. ODLE, C P A I I. OOLE, TERRY P. $HEA, C P ROGERS, ANDERSON, MALODY & SCOTT, LLP KIRK A FRANKS, C P A MATTHEW B WILSON, CP.A OERKIF/EO PUB /- iCACCOUNTAN.15 SCOTT SCOT W MANNO. MANNO. C P A H C P A NANCY O'RAFFERTY, C P A SRADFE RD A WELESIR, C P A JENNY LIU. C P A TIMOTHY P. HORN. C P A KATIE L MILLSO J. C P A JOHN J. BADIA, C P A JONATHAN R. KUHN. C P A BRADFORD L ROCKABRAND, C P A PAPA MATAR THIAW. C P A Board of Directors East Valley Water District 3654 L=ast Highland Avenue San Bernardino, California 92346 AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The information on pages 47 through 77 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. November 19, 2009 MEMBERS AMERICAN INSTITUTE 01: CERTIFIED PUBLIC ACCOUNTANTS Q0 .r, AN9tr•RJON ItIAl -oDY PCO GL P PCPS THE AICPA ALLIANCE FOR CPA FIRMS CALIPORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS VANIR TOWER • 290 NORTH 'D' STREET • SUITE 300 SAN BERNARDINO. CA 92401 (909)889 -08 71 • (9091824.6736 • FA%,909,889,5361 -45- V/ebs'te +•:: > +o. +gmsepa. net 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, 2009 AND 2008 OPERATING REVENUES: Water sales Connection charges Other water services Total Operating Revenues OPERATING EXPENSES: Source of Supply: Supervision and labor Laboratory analysis Groundwater replenishment North Fork - assessments Supplies Maintenance Pumping: Supervision and labor Maintenance Fuel and power Supplies Water Treatment: Supervision and labor Contracted treatment Other outside services Supplies Transmission and Distribution: Supervision and labor Outside services Supplies -47- 2009 $ 15,015,408 308,408 396,349 2008 $ 13,576,217 478,975 529,329 15, 720,165 14, 584, 521 128,946 255,123 144,215 58,295 2,411 19,752 608,742 488,846 354,319 2,051,080 67,482 2,961,727 132,921 968,220 264,786 55,035 1,420,962 825,890 142,277 434,909 1,403,076 53,927 179,200 145,302 58,295 1,410 438,134 467,642 317,546 2,161,205 58,999 _ 3,005,392 95,049 302,317 269,843 42,197 709,406 823,760 148,002 284,169 _ 1,255,931 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, 2009 AND 2008 2009 2008 OPERATING EXPENSES (continued): Customer Accounts: Supervision and labor $ 463,430 $ 372,202 Uncollectible accounts 3,231 2,559 Supplies 76,699 81,398 Maintenance 7,140 - 550,500 456,159 Administrative and General: Salaries and wages 1,280,191 1,048,600 Taxes and benefits 1,367,628 1,103,892 Utilities 85,358 86,585 Outside services 283,995 366,738 Legal and accounting 64,464 54,443 Director's fees 68,166 50,827 Insurance 383,584 313,291 Office supplies and expense 69,780 71,749 Meetings, seminars and supplies 148,148 121,621 Vehicle and equipment expense 336,770 359,297 Regulatory fees 65,892 46,201 Disaster /emergency expense 6,159 - Dues and subscriptions 107,621 85,235 General plant maintenance 204,326 265,796 Rent 99,154 99,434 Federal and state representation 139,070 86,831 Bank service charges 59,227 45,402 Miscellaneous expenses 48 303 Election expense 71 178 4,769,652 4,206,423 OPERATING EXPENSES BEFORE DEPRECIATION Depreciation Total Operating Expenses Operating Income MR 11, 714, 659 10, 071, 445 2,506,211 2,357,201 14,220,870 1,499,295 12,428,646 2,155,875 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, 2009 AND 2008 NON - OPERATING REVENUE: Investment income Gain from disposition of assets Miscellaneous Total Non - Operating Income NON - OPERATING EXPENSES: Interest expense Amortization - issuance costs Amortization expense - lease costs Loss on disposed of assets Total Non - Operating Expenses Income Before; Contributions and Transfers CONTRIBUTIONS AND TRANSFERS: Utility plant dedicated Capacity chargers Grant: Capital contribution from mutual water company (North Fork) Transfer of capital asset to mutual water company (North Fork) CHANGE IN NET ASSETS -49- 2009 2008 $ 157,610 $ 316,792 31,397 25,093 189,007 341,885 1,094,926 35,280 2,676 75,027 1,207,909 776,466 35,280 2,676 41,142 855,564 480,393 1,642,196 381,182 278,307 1,754,445 233,410 432,575 1,102,289 1,826,543 367,894 (1,022,033) (1,471,577) 1,625,311 2,257,724 $ 2,105,704 $ 3,899,920 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, 2009 AND 2008 OPERATING REVENUES: Service charges Other sewer services Total Operating Revenues OPERATING EXPENSES: Sewage Collection: Salaries and wages Uncollectible accounts Operating supplies Repairs and maintenance Sewage Treatment Administrative and General: Salaries and wages Taxes and benefits Utilities Outside services Legal and accounting Director's fees Insurance Office supplies and expense Meetings, seminars and travel Vehicle and equipment expense Regulatory fees Disaster /Emergency expense Dues and subscriptions General plant maintenance Rent State representation Bank service charges Miscellaneous expense -50- 2009 2008 $ 9,039,158 19,521 9,058,679 316,487 3,231 69,309 60,269 449,296 5,631,258 721,141 545,326 36,015 136,133 27,188 29,303 78,985 65,320 23,149 149,496 22,442 2,640 6,607 19,106 42,494 1,420 25,383 45 1,932,193 $ 8,505,060 109,117 8,614,177 232,521 1,097 46,668 53,302 333,588 5,561,830 602,140 424,952 36,355 162,140 23,278 24,189 76,105 68,161 45,363 131,207 4,177 14,892 16,235 42,614 16,200 19,458 108 1,707,574 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, 2009 AND 2008 2009 2008 OPERATING EXPENSES BEFORE DEPRECIATION $ 8,012,747 $ 7,602,992 Depreciation 634,054 633,985 Total Operating Expenses 8,646,801 8,236,977 Operating Income NON - OPERATING REVENUE (EXPENSES): Investment income Penalties and shut off charges Miscellaneous Loss on disposal of assets Income Before Contributions CONTRIBUTIONS: Utility plant dedicated Capacity charges CHANGE= IN NET ASSETS -51- 411.878 78,216 98,624 (35,917) 140,923 552,801 158,904 158,904 377.200 193,569 37,942 1,008 4,159 236,678 613,878 360,265 189,004 549,269 $ 711,705 $ 1,163,147 EAST VALLEY WATER DISTRICT SCHEDULE OF CAPITAL ASSETS - WATER JUNE 30, 2009 Pumping Plant Hydro plant 59 1,091,641 - 1,091,641 Boosters, pumps and motors 7,036,675 327,955 7,364,630 Treatment Plant: Contact Clarification Plant 9,670,415 - 9,670,415 Transmission and Distribution Plant: Pipelines and services 50,388,671 4,480,508 54,869,179 Meters 4,230,002 205,296 4,435,298 Telemetry and control 353,738 6,648 360,386 Reservoirs and tanks 16,944,466 16,944,466 General Plant Land improvements ------ — -------------- - ------ ----Cost of Assets---------------------------------- - 317,456 Balance 717,468 24,211 Balance 655,385 June 30, 2008 Increases Decreases June 30, 2009 Capital assets, not being equipment 1,722,898 123,941 - depreciated /amortized: Transportation and general Land held for future use $ 1,366,150 $ - $ - $ 1,366,150 Land and easements 1,854,519 - - 1,854,519 Intangible plant 20,954 - - 20,954 Water stock and rights 1,362,739 188,992 - 1,551,731 Construction in progress 17,171,533 7,801,844 9,283,474 15,689,903 Total capital assets, not being depreciated/ amortized 21,775,895 7,990,836 9,283,474 20,483,257 Capital assets, being depreciated/ amortized: Source of supply plant: Wells 7,886,870 670,804 49,811 8,507,863 North Fork Intake pipeline 689,640 2,493,610 - 3,183,250 Pumping Plant Hydro plant 59 1,091,641 - 1,091,641 Boosters, pumps and motors 7,036,675 327,955 7,364,630 Treatment Plant: Contact Clarification Plant 9,670,415 - 9,670,415 Transmission and Distribution Plant: Pipelines and services 50,388,671 4,480,508 54,869,179 Meters 4,230,002 205,296 4,435,298 Telemetry and control 353,738 6,648 360,386 Reservoirs and tanks 16,944,466 16,944,466 General Plant Land improvements 317,456 - - 317,456 Building 717,468 24,211 86,294 655,385 Office furniture and equipment 1,722,898 123,941 - 1,846,839 Transportation and general equipment 2,184,464 100,388 58,989 2,225,863 Total capital assets, being depreciated/ amortized 103,234,404 8,433,361 195,094 111,472,671 Totals $ 125,010,299 $ 16,424,197 $ 9,478,568 $ 131,955,928 *Land amounts were grouped together on June 30, 2008 financial statements, -52- Capital assets, being depreciated/ amortized: Source of supply plant: Wells North Fork intake pipeline Pumping Plant: Hydro plant 59 Boosters, primps and motors Treatment Plant: Contact clarification plant Transmission and Distribution Plant: Pipelines and services Meters Telemetry and control Reservoirs and tanks General Plant: Land improvements Building Office furniture and equipment Transportation and general equipment Total accumulated depreciation Schedule Three Page 1 of 2 ----------------- - - - - -- Accumulated Depreciation--------------------------- Balance Balance June 30, 2008 Increases Decreases June 30, 2009 $ 1,975,497 $ 174,341 $ (9,475) $ 2,140,363 178,596 38,729 - 217,325 425,740 21,833 - 447,573 2,176,604 210,666 - 2,387,270 2,458,788 248,143 - 2,706,931 14,332,586 1,041,088 - 15,373,674 1,658,127 133,662 - 1,791,789 339,142 14,929 - 354,071 3,617,611 348,037 - 3,965,648 29,561 20,909 - 50,470 415,677 17,436 (81,986) 351,127 1,198,946 74,880 1,273,826 1,554,894 160,276 (58,989) 1,656 181 30,361,769 2,504,929 (150,450) 32,716,248 $ 30,361,769 $ 2,504,929 $ (150,450) $ 32,716 248 -53- EAST VALLEY WATER DISTRICT SCHEDULE OF CAPITAL ASSETS - SEWER Capital assets, not being depreciated /amortized: Land and easements Construction in progress Total capital assets, not being depreciated/ amortized Capital assets, being depreciated /amortized: Collection Plant: Wastewater pipelines and laterals General Plant: Building Office furniture and equipment Transportation and general equipment Total capital assets, being depreciated/ amortized Totals JUNE 30. 2009 Of Balance June 30, 2008 Increases Decreases Balance June 30. 2009 $ 29,215 $ - $ - $ 29,215 811,241 125,725 539,743 397,223 840,456 125,725 539,743 426,438 22,862,293 555,279 - 23,417,572 300,182 - 35,451 264,731 1,158,873 49,590 - 1,208,463 1,786,389 93,076 29,269 1,850,196 26,107,737 697,945 64,720 26,740,962 $ 26,948,193 $ 823,670 $ 604,463 $ 27,167,400 -54- Schedule Three Page 2 of 2 -------------------- - - - - -- Accumulated Depreciation-------------•------------- Balance Balance June 30, 2008 Increases Decreases June 30, 2009 Capital assets, being depreciated/amortized: Collection Plant: Sewage pipelines and services $ 9,936,695 $ 438,072 $ $ 10,374,767 General Plant Building 197,781 9,382 31,197 175,966 Office furniture and equipment 911,383 36,289 - 947,672 Transportation and general equipment 1,213,159 150,311 29,269 _1,334,201 12,259,018 634,054 60,466 12,832,606 Total accumulated depreciation $ 12,259,018 $ 634,054 $ 60,466 $ 12,832,606 -55- EAST VALLEY WATER DISTRICT CAPITAL ASSETS SCHEDULE OF INCREASES AND DECREASES - WATER YEAR ENDED JUNE 30, 2009 INCREASES: Schedule Four Page 'I of 5 CAPITAL ASSETS NOT BEING DEPRECIATED: Investment in Water Company stocks Capital assessment on EVWD shares in North Fork Water Company to fund NFWC share of costs in North Fork canal replacement $ 188,992 Construction in Progress Increases in jobs due to capital invested /donated 7,801,844 CAPITAL ASSETS, BEING DEPRECIATED /AMORTIZED: Source of Supply Plant Plant 151 — drilling of Sixth Street well 670,804 North Fork: Canal Replacement — costs associated with EVWD 50% ownership 2,493,610 3,164,414 Pumping Plant — 11060 Plant 142 — replace pump motor 20,006 Plant 143 — replacement column, tube & shaft 67,850 Plant 151 — equip new well 240,099 327.955 Transmission & Distribution Plant — Pipelines Plant 134 —10 foot telemetry tower 6,648 Tract 18199 117,792 Tract 16914 447,551 Tract 15960 55,253 8" Watermain replacement — Rogers Lane 542,024 8" Watermain replacement — Cloverhills and Water St 83,473 8" Watermain replacement — Date St 1,976,492 8" Waterrnain replacement — Elmwood to Plant 150 28,185 8" Waterrnain replacement — Pacific St 53,249 8" Waterrnain replacement — Plant 151 to 6'h St 256,918 VAULT" LIDS — CRAM SCHOOL 3,448 VAULT LIDS — SERRANO MS 4,923 VAULT LID —1226 DATE ST 2,325 NEW SVS @ 1050 DEL ROSA AND 1250 9T11 ST 166,655 NEW SVS @ 27847 GREENSPOT — LOWES 42,906 NEW SVS @ 927 E 9TH ST 498,596 -57- EAST VALLEY WATER DISTRICT CAPITAL ASSETS SCHEDULE OF INCREASES AND DECREASES - WATER YEAR ENDED JUNE 30, 2009 INCREASES (continued): CAPITAL ASSETS, BEING DEPRECIATED /AMORTIZED (continued): Transmission & Distribution Plant — Pipelines (continued) NEW SVS @ 27215 5T" ST NEW SVS @ 24220 5T" ST NEW SVS @ 1982 GUTHRIE NEW SVS @ 1631 HIGHLAND AVE NEW SVS @ 27767 BASELINE NEW SVS @ 7744 WEBSTER NEW SVS @ 26825 CYPRESS NEW SVS @ 27352 BASELINE AND 27310 BASELINE NEW SVS @ 25699 BASELINE NEW SVS @ 14' AND VICTORIA NEW SVS @ 3606 HIGHLAND AVE Transmission & Distribution Plant —Meters 11100 3" COMPOUND METER — 2004 LYNWOOD 3" COMPOUND METER — PACIFIC & ARDEN 4" COMPOUND METER — 2477 PACIFIC NEW SERVICES AND UPGRADES Meter replacement program Buildings Plant 151 — Fiberglass shed Office Furniture and Equipment Dell Poweredge R200 Server (Laserfiche) ATSI Telemetry PC — Production ATSI Telemetry PC — Plant 134 CapitalSoft budgeting software Barracuda spam blocker software Teleworks automated phone pmt software ClearSCADA 5 HMI Software, 25K pt. RICOH Aficio MP W3600 Blueprint Copier Konica - Minolta BizHub C550 Copier Wall Mount A/C — Meter Shop Workstation Furniture — Administration 1W.3 Schedule Four Page 2 of 5 11,048 13,357 39,636 7,194 26,500 11,958 5,340 56,234 8,726 7,046 13,679 4,487,156 2,851 2,851 3,877 5,419 190,298 205,296 24,211 1,277 3,771 3,771 3,498 1,033 25,661 66,809 6,221 7,875 1,950 2,075 123,941 Schedule Four Page 3 of 5 EAST VALLEY WATER DISTRICT CAPITAL ASSETS SCHEDULE OF INCREASES AND DECREASES - WATER YEAR ENDED JUNE 30, 2009 INCREASES (continued): CAPITAL ASSETS BEING DEPRECIATED /AMORTIZED (continued): Transportation and General Equipment 460E Backhoe Loader 48,031 Modis Elite Scope 3,502 Goldak Pipe Locator 3,443 Traffic: Plate 3,870 2009 GMC: C4500 (1 GDE4C1 G99F404072) 20,085 2009 GMC: Sierra Extra Cab (1 GTHC49K79E133599) 13,023 IR P185 Compressor 8,434 100,388 TOTAL- INCREASES $ 16,424,197 DECREASES: CAPITAL_ASSETS, NOT BEING DEPRECIATED: Construction in Progress Decreases due to jobs completed and capitalized /expensed 9,283,474 CAPITAL ASSETS, NOT BEING DEPRECIATED /AMORTIZED: Pumping Plant —11060 Plant 142 — replace motor 19,382 Plant 143 — replace column, tube, bowl _ 30,429 49,811 Buildings Demolish old front office at Del Rosa site 86,294 Transportation and General Equipment 1994 Ford F150 — Unit 12 9,068 1996 Ford F250 — Unit 42 8,905 1997 Ford Aerostar Van — scrapped 19,248 1997 Ford F150 —Unit 47 10,383 99 Super DLX Scanner 913 Underground fuel storage tanks 10,472 58,989 TOTAL DECREASES $ 9,478,568 -59- EAST VALLEY WATER DISTRICT CAPITAL ASSETS SCHEDULE OF INCREASES AND DECREASES - SEWER YEAR ENDED JUNE 30, 2009 INCREASES: CAPITAL ASSETS, BEING DEPRECIATED /AMORTIZED: Construction in Progress Increases in jobs due to capital invested / donated CAPITAL ASSETS BEING DEPRECIATED / AMORTIZED Wastewater Collection Plant Tract 18199 - collection mains and laterals Tract 16914 - collection mains and laterals Tract 15960 - collection mains and laterals Office Furniture and Equipment Dell Poweredge R200 Server (Laserfiche) CapitalSoft budgeting software Barracuda spam blocker software Teleworks automated phone pmt software RICOH Aficio MP W3600 Blueprint Copier Konica - Minolta BizHub C550 Copier Wall Mount A/C - Meter Shop Workstation Furniture - administration Transportation and General Equipment 460E Backhoe Loader Modis Elite Scope 2009 GMC 04500 2009 GMC Sierra Extra Cab IR P185 Compressor TOTAL INCREASES me Schedule Four Page 4 of 5 125,725 81,810 347,111 126,358 555,279 1,277 3,498 1,033 25,661 6,221 7,875 1,950 2,075 49,590 48,031 3,502 20,085 13,023 8,435 93,076 $ 823,670 EAST VALLEY WATER DISTRICT CAPITAL ASSETS SCHEDULE OF INCREASES AND DECREASES - SEWER YEAR ENDED JUNE 30, 2009 DEGREASES: CAPITAL ASSETS NOT BEING DEPRECIATED Construction in Progress Decreases clue to jobs completed and capitalized / expensed CAPITAL ASSETS NOT BEING DEPRECIATED Buildings Demolish old front office at Del Rosa site Transportation and General Equipment 1994 Ford F150 -Unit 12 1996 Form F250 - Unit 42 1997 Ford F150 - Unit 47 99 Super DIA Scanner -61- Schedule Four Page 5 of 5 $ 539,743 35,451 9,068 8,905 10,383 913 29,269 $ 604,463 Schedule Five EAST VALLEY WATER DISTRICT UNREDEEMED BOND COUPONS - RETIRED DEBT Bond Series 1955 Water Revenue Bonds 1957 General Obligation Bonds 1966 Water Revenue Bonds - Division 1 1966 Water Revenue Bonds - Division II JUNE 30, 2009 Interest Bond Total Coupons Principal Amount Payable Payable Payable $ 829 $ - $ 829 211 - 211 425 - 425 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, 2009 Interest Total Due Date Principal Rate Interest Payments _ 12 -1 -09 $ 750,000 4.250% $ 151,255 6 -1 -10 4.250 135,317 12 -1 -10 785,000 4.250 135,317 6 -1 -11 4.250 118,636 12 -1 -11 790,000 4.250 118,636 6 -1 -12 4.400 101,849 12 -1 -12 820,000 4.400 101,849 6 -1 -13 4.500 83,809 12 -1 -13 855,000 4.500 83,809 6 -1 -14 4.625 64,571 12 -1 -14 900,000 4.625 64,571 6 -1 -15 4.700 43,759 12 -1 -15 220,000 4.700 43,759 6 -1 -16 4.800 38,589 12 -1 -16 230,000 4.800 38,589 6 -1 -17 4.875 33,069 12 -1 -17 240,000 4.875 33,069 6 -1 -18 4.875 27,219 12 -1 -18 250,000 4.875 27,219 6 -1 -19 5.000 21,125 12 -1 -19 565,000 5.000 21,125 6 -1 -20 5.000 7,000 12 -1 -20 280,000 5.000 7,000 Totals $ 6,685,000 -63- 901,255 135,317 920,317 118,636 908,636 101,849 921,849 83,809 938,809 64,571 964,571 43,759 263,759 38,589 268,589 33,069 273,069 27,219 277,219 21.125 586,125 7,000 287,000 $ 1,501,141 $ 8,186,141 Due Date 12 -1 -09 Totals Schedule Seven EAST VALLEY WATER DISTRICT REFUNDING CERTIFICATES OF PARTICIPATION - SERIES 1996 PRINCIPAL AND INTEREST REPAYMENT SCHEDULE JUNE 30, 2009 Interest Principal Rate $ 615,000 $ 615,000 5.40% m Interest Total Payments $ 16,605 $ 631,605 $ 16,605 $ 631,605 EAST VALLEY WATER DISTRICT 2004 PROJECT INSTALLMENT SALE NOTE PRINCIPAL AND INTEREST REPAYMENT SCHEDULE JUNE 30, 2009 Interest Due Date Principal Rate Interest Schedule Eight Total Payments 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 $ 8,455,152 -65- $ 3,379,833 $ 11,834,985 Schedule Nine EAST VALLEY WATER DISTRICT DEPARTMENT OF WATER RESOURCES CONSTRUCTION LOAN PRINCIPAL AND INTEREST REPAYMENT SCHEDULE JUNE 30, 2009 Interest Total Due Date Principal Rate Interest Payments 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 $ 145,385 $ $ 145,385 Schedule Ten EAST VALLEY WATER DISTRICT 2006 PROJECT INSTALLMENT SALE NOTE PRINCIPAL AND INTEREST REPAYMENT SCHEDULE JUNE 30, 2009 Interest Total Due Date Principal Rate Interest Payments 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 33 -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 -25 232,263 4.95 5,749 238,012 Totals $ 5,428,578 $ 2,663,836 $ 8,092,414 -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 4,863 Citizens Business Bank - checking 239,581 Citizens Business Bank - Arroyo Verde 46,510 Local Agency Investment Fund 2,753,311 Cash held for Certificate of Participation funds 830,555 Citizens Business Bank - Money Market 601,281 Citizens Business Bank - Money Market - Construction Fund 875,489 Total Cash Funds Available 5,353,340 Less cash restricted for Certificate of Participation Funds 830,555 Customer deposits 1,646,990 Construction deposits 124,850 Construction fund 875,489 Arroyo Verde Assessment District 46,510 Total Restricted Cash 3,524,394 Unrestricted Cash $ 1,828,946 Investment in Debt Securities Investments consist of the following: Citizens Business Bank Investment Account $ 3,417,633 Citizens Business Bank Construction Fund - Total investments 3,417,633 Less investments restricted for: Construction fund no $ 3,417,633 Accounts Receivable, net - $1,493,576 Water and sewer accounts receivable at June 30, 2009 consisted of the following: Accounts receivable $ 1,500,039 Less: Allowance for uncollectible accounts (6,463) $ 1,493,576 Interest Receivable - $39,042 Interest receivable at June 30, 2009 consisted of the following: Local Agency Investment Fund $ 5,839 Investments in debt securities 32,600 Money Market Funds 549 COP Funds 54 $ 39,042 Other Receivables - $1,076,215 Other receivables at June 30, 2009 consisted of the following: City Creek: Water Co. $ 31,832 Developers and Others 29,108 North Fork 601,940 Hazard Mitigation Grant 384,600 Arroyo Verde Assessment District 28,735 $ 1,076,215 Inventory --• Ampraae Cost - $1,111,816 The inventory at June 30, 2009 consisted of the following: Water pipe, fittings, valves, etc. $ 883,680 Meters 148,799 Treatment: plant 66,656 Office supplies 6,038 Automotive parts 6,643 $ 1,111,816 Prepaid Expenses and Deposits - $120,083 Prepaid expenses and deposits at June 30, 2009 consisted of the following: Prepaid insurance $ 22,660 Miscellaneous expenses and deposits 97,423 $ 120,083 .• 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, 2009 is shown below: Capital assets, being depreciated/ amortized: Balances, July 1, 2008 Add: 2008 -2009 Additions and transfers from construction in progress Less: Assets retired Less: Accumulated depreciation Capital assets, not being depreciated/ amortized: Balances, July 1, 2008 Add: 2008 -2009 Additions Less: Assets retired and transfers from construction in progress Total capital assets Water Sewer Total $103,234,404 $ 26,107,737 $129,342,141 8,433,361 697,945 9,131,306 195,094 64,720 259,814 111, 472, 671 26, 740, 962 138, 213, 633 32,716,248 12,832,606 45,548,854 Plant 24 — design storm drain 22,595 New Treatment Plant 78,756,423 13,908,356 92,664,779 GIS System 252,259 Plant 152 & New Prop to West 21,775,895 840,456 22,616,351 7,990,836 125,725 8,116,561 9,283,474 539,743 9,823,217 20,483,257 426,438 20,909,695 $ 99,239,680 $ 14,334,794 $113,574,474 Depreciation for the year amounted to $2,506,211 in the Water Department and $634,054 in the Sewer Department. Construction in progress, consisting of Utility Plant additions, which were incomplete at June 30, 2009, is shown below: Water Department Developer Projects $ 518,934 New District Offices 8,889,475 Feas Study Thm 777,131 Santa Ana River discharge 197,533 Main repl — Live Oak Rd 1,454 Plant 24 — design storm drain 22,595 New Treatment Plant 1,767,027 Plant 40 Rehab 2,646,546 GIS System 252,259 Plant 152 & New Prop to West 319,630 Greenspot Water Treatment Plant 24,246 Plant 134 & EVWD Distribution 47,527 City of Highland Street Improvements 118 Regional Water Supply and Treatment 157,294 Harlan Ln Pipeline Replacement 7,957 Eastwood Farms Mutual Water 34,894 City of Highland — Berry St 7,937 -70- Water De a�rtment (continued) 2009 Solar Challenge $ (1,711) City of Highland — Greenspot Rd 1,122 Union and Vine Abandon Svs 1,625 3`d and 51h — IDVA 1,210 Plant 120— Well Rehab 8,137 Warm Creek Storm Drain 947 Accrued labor at 6/30109 to various orders 6,016 15,689,903 Sewer Department Developer Projects 228,405 New District Offices 278 GIS 50 Sewer System Mgmt Plant GAP Analysis 83,815 Conejo Sewer Replacement 84,515 Accrued labor at 6/30109 for various jobs 160 397,223 $ 16,087,126 -71- DEFERRED CHARGES - $176.617 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 2008 - 2009 was as follows: Balance, July 1, 2008 Less: 2008 -2009 amortization Balance, June 30, 2009 $ 162,846 (35,280) 127,566 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 2008 -2009 is as follows: Balance, July 1, 2008 $ 51,727 Less: 2008 -2009 amortization (2,676) Balance, June 30, 2009 49,051 Total Deferred Costs $ 176,617 LONG -TERM DEBT - $21.329,115 Schedules Six, Seven, Eight, Nine and Ten set forth the future annual payments of the Certificates of Participation and notes payable. CURRENT LIABILITIES Current liabilities consisting of accounts payable, accrued liabilities, accrued interest payable, deposits, Certificates of Participation and notes payable, are discussed below: Accounts Payable - $1,897,482 Trade accounts payable at June 30, 2009. Accounts Payable - Other $70.032 Basin Water Technology Group Others -72- $ 70,032 Accrued Pavroll and Benefits - $1,132,738 Accrued Payroll and Benefits $ 1,102,885 Accrued Pension 29,853 $ 1,132,738 Accrued payroll and benefits consist of accrued payroll, payroll taxes, deferred compensation, employee benefits, and pension. Customer Service Deposits - $1.646.990 Customers' service deposits amounting to $1,646,990 were held by the District to secure payments of water tolls and sewer charges. Accrued Interest Payable - $250.850 Accrued interest payable as of June 30, 2009 is shown below: 1955 Water Revenue Bonds $ 829 1957 General Obligation Bonds 211 1966 Water Revenue Bonds 5,435 Certificates of Participation 27,977 2004 Installment Note 126,827 2006 Installment Note 89,571 Total $ 250,850 Deposits - Refundable - $124.850 Manhole and inspection fee deposits of $124,850 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. Lonna Terrn Debt - Current Portion - $1.968.695 The current portion of long -term debt consists of the following: 2004 Installment Note $ 387,375 2.006 Installment Note 209,875 COP Principal 1,365,000 DWR Arroyo Verde Construction Loan 3,381 Issue discounts (3,660) Issue premiums 6,724_ $ 1,968,695 -73- WATER OPERATIONS The fiscal period ended June 30, 2009 was the fifty -fifth 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: The rate charged to customers for water consumption for the years end June 30, 2009 and 2008 was $1.35 and $1.20 per hundred cubic feet (HCF), respectively. -74- 2007-2008 2008-2009 Billed Billed Month Connections Revenue Connections Revenue July 21,953 $ 1,405,436 21,801 $ 1,493,304 August 22,030 1,424,007 21,730 1,622,098 September 21,952 1,439,222 21,736 1,504,384 October 21,923 1,143,458 21,778 1,432,757 November 21,914 1,102,046 21,696 1,235,151 December 22,970 939,591 21,761 1,042,389 January 21,890 879,673 21,805 1,012,847 February 21,850 791,017 21,708 876,620 March 21,774 815,455 21,789 874,612 April 21,749 1,078,466 21,719 1,161,897 May 21,800 1,285,493 21,765 1,354,426 June 21,827 1,272,353 21,806 1,404,923 Totals $ 13,576,217 $ 15,015,408 The rate charged to customers for water consumption for the years end June 30, 2009 and 2008 was $1.35 and $1.20 per hundred cubic feet (HCF), respectively. -74- Monthly meter charges and installation charges in effect during the year were as follows: Size of Service District Monthly Meter Charge _ December to July to June November 5/8" $ 10.45 $ 8.40 314" 10.45 8.40 1" 14.63 15.70 1-1/2" 18.81 33.00 2" 30.30 47.60 3" 114.94 83.50 4" 146.29 139.00 6" 219.44 270.00 8" 303.04 405.00 Mat rate per month -75- Water Connection _ Size of Service Charge _ 3/4" Service $ 5,401 1" Service 7,626 1 -1/2" Service 15,617 2" Service 22,369 3" Service 43,469 4" Service 71,151 6" Service 136,117 8" Service 226,983 -75- SEWER OPERATIONS The fiscal period ended June 30, 2009 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: Month July August September October November December January February March April May June Totals 2007-2008 Billed Connections 19,264 19,265 19,220 19,237 19,251 19,137 19,143 19,079 19,079 19,044 19,137 19,115 Revenue $ 726,292 730,826 746,750 668,848 692,827 693,550 699,187 665,493 661,172 719,977 748,473 751,665 $ 8,505,060 2008 -2009 zMe Connections $ 19,366 19,312 19,301 19,309 19,268 19,301 19,409 19,270 19,347 19,288 19,329 19,370 Revenue $ 785,060 802,469 788,458 762,282 723,232 706,549 747,949 703,427 707,152 759,088 777,220 776,271 $ 9,039,157 The District's sewer system is connected to main lines leading to the Sewage Disposal Plant operated by the City of San Bernardino. In 1980, for treatment of the District's sewage, the District paid the City an amount equal to 92% of the City's established sewer rate. In 1981, the agreement between the City and the District was amended. Under the amended agreement, the City and the District agreed to adopt a uniform regional sewer rate. A summary of payments is shown below: 1980 -81 1981 -82 1982 -83 1983 -84 1984 -85 1985 -86 1986 -87 1987 -88 1988 -89 1989 -90 1990 -91 1991 -92 -76- Total Customer Billing $ 1,094,056 1,226,288 1,567,722 1,905,728 1,915,433 2,074,012 2,112,391 2,103,552 2,302,316 2,475,445 2,769,747 4,061,294 Payments to City $ 638,906 690,649 996,613 1,208,036 1,349,565 1,346,233 1,357,062 1,459,388 1,522,914 1,623,554 1,681,608 3,138,131 1992 -93 1993 -94 1994 -95 1995 -96 1996 -97 1997 -98 1998 -99 1999 -00 2000 -01 2001 -02 2002 -03 2003 -04 2004 -05 2005 -06 2006 -07 2007 -03 2008 -09 Total Customer Billing 4,827,342 4,985, 784 5,302,573 5,427,970 5,481,057 5,445,921 5,607,049 5,798,700 5,885,051 5,991,709 6,085,516 6,622,588 7,423,533 7,733,908 8,139,600 8,505,060 9,039,158 Sewer charges in effect at June 30, 2009 were as follows: Sewer Service Rates: Residential Through June 30, 2009 Payments to City 3,527,092 3,661,494 3,954,703 4,023,657 4,094,016 4,072,840 4,196,895 4,338,956 4,396,629 4,495,040 4,557,909 4,771,339 5,288,212 5,473,390 5,607,172 5,561,831 5,631,258 $26.09 monthly West of City Creek $28.09 monthly East of City Creek Sewer connection charges in effect during the year were as follows: Permit Charge: $ 25.00 1connection Inspection Charge: $ 75.00 1connection Connection Charge: $ 645.00 /EDU or portion thereof Trunk Sewer Charge: $ 158.00 1EDU or portion thereof 77- Ab I vALLtY WA tR DISTRICT 3654 EAST HIGHLAND AVE #18 HIGHLAND, CA 92346 (909) 885 -4900 FAX(909) 889.5732 CLAIMS FOR DAMAGES TO PERSON OR PROPERTY F E_T_R_UCTIONS Subject to certain statutory exceptions, an action for money or damages may not be maintained against the District unless written claim has been timely presented to the District and rejected in whole or in part. 2. A claim shall be presented by the claimant or by a person acting on the claimant's behalf. 3. !Answer all questions. Omitting information could make your claim legally insufficient. 4. Name and address of fhe person to whom you desire notices or communications to be sent regarding this claim. s. This claim form must be signed on page 2 at bottom. 6. atlach separate sheet,, if necessary, to give full details. SIGN EACH SHEET 7 Cla.lrn must be filed with Board Secretary. IO:EAST VALLEY WATER DISTRICT fWP Name of Claimant�!,y Hoene Address of Claimant City Td St at Home Telephone Number Claimant Give address to which you desire notices or communications to be sent Flow did DAMAGE orjINJURY ccur? Giv full p rticul rs. t�`Y� ev. tLL(�:r3 W41 \N (V w ..a. �m I/tlM,d ti, r't�` t2J[Tw'v. �,L Wy�t,r �2 � �ti...'[s �,. �n fv-tvt cv. CNki\ When did DAMAGE or INJURY occur? Give full particulars, date, time of day: ftrx.c1 (qc jt Z- 0�1 IP j id rAA Where did DAMAGE or INJURY occur? Describe fully, and locate on diagram on reverse side of this sheet, where , appropriate, give street names and address and measurements from landmarks: C_nw Coo w...,Zwr,"L. If� What particular ACT or OMISSION do you claim caused the injury or damage? Give names of District — etmpIoyees causing the Injury or damage, if known: _&" t k)%wra} --NVt ��nt etc��r.•` \MCI kAe r Vne&:\-fr. Jhat DAMAGE or INJURIES do you claim resulted? Give full extent of injuries or d; K'at its i ---��i t_ (�J:�ea ��rn�.er }e ygne .,.,,..`-k tor�a- i What AMOUNT do you claim on aca of computation: _S t' e. or aamaae as imed: ,� hey u,.;jkr V AN 4a cr-\ wy presentation G -eve E STIMATED AMOUNT as far as known you claim on account of each item of prospective injury or damage, giving basis or Insurance payments received, if any, and names of Insurance Company: SEE PAGE 2 (OVER) V THIS CLAIM MUST BE SIGNED ON REVERSE SIDE Expenditures made on account of accident or injury: (Date - Item) (Amount) Name and Address of Witness, Doctors and Hospitals: READ CAREFULLY For all accident claims place on following diagram names of streets, including North, East, South, and West: indicate place of accident by " X " and by showing house numbers of distance to street corners. If District Vehicle was involved, designate by letter " A " location of District vehicle when you first saw it, and by " B" location of yourself or your vehicle when you first saw District vehicle: location of District vehicle at time of accident by " A -1 " and location of yourself or your vehicle at the time of the accident by "B -1" and the point of impact by "X ". NOTE: If diagrams below do not fit the situation, attach hereto a proper diagram signed by claimant. FOR OTHER ACCIDENTS SIDEWALK CURB CURB on behalf giving It14l�o NU i t: Ali claimants may big required to be examined as to their cla Presentation of a false claim is a felony (Calif. Penal Code Sec. 72) CLAIMS MUST BE FILED WITH BOARD SECRETARY. A OWE'' LOUE'S HOME CENTERS, INC. 27847 GREEMSPOT ROAD HIGHLAND, CA 92346 (909)557.9010 -SALE - SALES A: S2856ET2 1409490 10 -06 -09 61166 RATER HEATER INSTALLATION 21.33 140389 400 6YR ELEC SHORT VTR HT 270.00 SUBTOTAL: 299.33 TAX: 26.19 INVOICE 14727 TOTAL: 325.52 BALANCE DUE: 325.52 CHECK : 325.52 2856 TERMINAL: 14 10/05/09 18:27:37 # OF ITEMS PURCHASED: 2 EXCLUDES FEES, SERVICES AND SPECIAL ORDER ITEMS THANK YOU FOR SHOPPING LOHE'S RECEIPT REQUIRED FOR CASH REFUND. CHECK PURCHASE REFUNDS REQUIRE 15 DAY HAIT PERIOD FOR CASH BACK. STORE MDR: JAMES DAVIS HAVE A COMMENT OR FEEDBACK? LET US KNOU AT: WWW.LOWES AWFEEDBACK STORE CODE: 28561- 00609 -14727 THE FOLLOWING ITEMS HAVE EXTENDED PROTECTION PLANS AURIL98LE FOR PURCHASE. YOU HAUE 30 DAYS FROM THE DATE OF THIS SALE TO PURCHASE A PLAN, TO MAKE A PURCHASE, CONTACT A LOVE'S SALESPERSON. 140389 40G 6YR ELEC SHORT HTR HTR 4 7 RAYCO MAVIHG PLUMBING, HEATING & AIR CONDITIONING OR - 22340 PICO STREET, GRAND TERRACE, CA 92313 1-800-698-7586 ST. LIC. # 589632 O(OMW Nama 0 Tema Jabal zip 811to F 11 ;950 DATE WORKMAN 0 Old Customer ONWNCL*ww / 11, Classiftcallon Zip - Telephone MRKAUTHOFUZkT[ON-I/Wehw*wtmfttheworkdosatWabngwlh the necessary milarialsandparls WORKORDERED: I - -- -- ------ -10 ---- L HC�n MATERIAL U AMOUNT Lion. 11 � f'7 Tues. A Z Wed 77, J,2 H17 Thurs. Sat Sun. Tats) Hours ENTERED IT woloe M OF' RgffiT70CAf% =Co ;,on ir, 9. �%P-Zlon a mte 1*1 dw^ Dabd EkWsWW-" TO OUR CUSTOMERS. Smvlw men we required b have work sffp algoed. This Is dam in aft In protect you, the worlaven, and ourselves, and to enable us to 9W you absolude saftfackwy swvloa. You are respedfully requested b exardne mabodal and labor statement before workmen leave the job, and N you end werything satisfactory, okay this dcicet If servos Is unsaftlacbory, In arty , please phone our office bm*dW*. IftfMoffirne and inatwistdoWsbovew"ctoryand resentma 7kwoWandA40w8qw10 A PENALTY WILL BE CHARGED AT THE RA M OF pW numoroW dwgas kr collixfJon, kidudIng stbirneys few h ft evers P I u2% PER MONTH ON UNPAID BALANCES AFTER 30 DAYS OF INVOICE DATE. ANNUAL PERCENTAGE RATE IM Contractors as re quired by law to be Wenad and regulated theContractorsIM91.1censeBoard. contractor may be referred to the registrar of addrew hl-Cofitractona!State Lkem" Board, 9835 Goothe Roo J11' A)l d, Sacramento, CA 958719 P.O. Box NW, Sacramento, CA 9M I Total Maww TMX SwvW Thids - E*"M do ?U zee of sdo P.O. Box 5773 San Bernardino, California 92412 Phone (909) 888 -6949 State Contractors License #536099 Date/ /— P ' oc/� TO Balance LABOR AND MATERIALS LIVING ROOM DINING ROOM ENTRY HALL HALL BEDROOM FAMILY 7 �w �;, COUSTICAL CEILINGS, INC. CA License No. 798421 7503 Buena Vista Rancho Cucamonga, CA 91730 (9091985-561.1 Customer Address: City /State /Zip: Cross Streets: /0%91Gq Time Out: Home Phone: cl�f� - ( 4 Work Phone: Begin Date: End Date: Time In:_ I ROOMS: Living Room Dining Room X Hallway [X Entry Hall [)Bedroom 1 2 3 4 5 [ ] Dressing Area / Ext. I] Family Room [) Garage [ ] Laundry . .. [ J Bath 1 2 3 [ ] Kitchen [ ] Other SERVICES NEEDED: Cathedral Wood Beams Comments Pager /Cellular: Contact: ( ] Respray ceilings with acoustic [ ] Scrape off acoustic, seal ceilings w /shellac, respray "w /acoustic (I Seal ceilings with white shellac and respray with new acoustic [ ] Seal water damage area with white shellac ( ] Scrape off acoustic, prepare ceilings, texture (] 2 coats sealer, 1 coat 1 color paint ceiling _ Drywall repair j ✓ c (PAS �Y "rA1\ `� �YLL L'—'S �`'S ; G Texture all Ceiling Price $ Price $ Price $ Price $ Price $ ... - t. , 1„_,_ TOTAL PRICE $ ��(Z' ACOUSTICAL CEILINGS does not assume responsibility forexisting conditions such as irregular surfaces, ridges, cracks, prepara- tion done by others, stains not visible by application, photographic ceilings that are not visible, wallpaper and flooring that may absorb moisture or be damaged, paint or paneling that may peel by masking process. Customer understands that if wallpaper exists that staples will be used. Closets are not included in the price. No damage claims will be honored after workmen leave the premises. OWNER is responsible for removing all breakable items, any drapes that touch the cei I ing, and blades from ceiling fans. Owner or tenant has the right to require the contractor to have a performance and payment bond. Customer will have the right to terminate with no penalty should the contractor fail to commence work within 20 days. Commence of work shall consist of any of the following: Delivery to job site; Technician begins a part of the installation as specified in the contract. I have been shown the current condition of my ceilings /walls and agree to allow the technician to perform the above services. I FURTHER ACKNOWLEDGE AND AGREE THAT I AM WAIVING MY THREE (3) DAY RIGHT TO RESCEND ALL GOODS AND SERVICES PURCHASED /PERFORMED UNDER THIS AGREEMENT, AND HEREBY AUTHORIZE ALL OF THE ABOVE STATED GOODS AND SERVICES TO BE IMMEDIATELY PERFORMED. ACOUSTICAL CEILINGS is not responsible for damage to customer's electrical outlet or circuit breakers caused by company equipment. All service including warranty is performed during companybusiness hours, Mondaythrough Friday, 9:00 a.m. to 5:00 p.m. Service technicians are required to walk you through the house and confirm the work is satisfactory. By signing below you are acknowledging that the above was performed. I am aware that Acoustical Ceilings is not a licensed asbestos removal or mold remediation company and hereby waive, release and hold harmless against all liability, damages or other expenses I may incur as a result of any asbestos or mold related occurrences. The amount of dishonored/returned checks will be electronically debited from your account and will include a processmgfee Acoustical Ceilings will keep as liquidated damages all collected monies on deposit allowable bylaw. Customer Signature Technician Signature 31-YER'S RIGHT TO CANCEL: You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See reverse for additional buyer rights. Carlos' Maintenance and Construction 5529 North Aster Street San Bernardino, CA 92407 Name / Address Joe Powers Estimate Date Estimate # 1 10/14/2009 1234 1 Protect Description Qty Rate Total Service address: Mountain Shadows 11 Unit 4114. i Water damage in dining room, living room, entry, hallway, and ceilings caused by upstairs Unit # 124, I. Seal all stains in the rooms; dining room, living room, hallway, and entry. 2. Respray ceilings. .3. Clean up. Material and Labor 285.00 285.00 4. Repair cracks and blistering around a/c vent in the dining room. 0.00 Float, texture and paint. Material and Labor 98.00 98.00 n�. �� Total $383.00