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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 10/12/2010East Valley Water District 3654 HIGHLAND AVE., SUITE #12, HIGHLAND, CA BOARD MEETING October 12, 2010 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 ---------------------------------------------------------------------- 1. Public Comments • EVWD's 2010 Hazard Mitigation Plan Update CONSENT CALENDAR 2. Approval of Agenda 3. Approval of September 15, 2010 Special Board Meeting and Public Hearing Minutes 4. Approval of September 28, 2010 Board Meeting Minutes 5. Resolution 2010.28 — A Resolution of the Board of Directors of the East Valley Water District Notice of Completion executed by the District for pumping equipment, brush and bail, install a new 6 stage bowl assembly, rebuild packing box assembly, sand blast and powder coat discharge head, and install new rubber line shaft bearing at Plant 132 -5 located at 7479 San Francisco Street in the City of Highland 6. Accounts Payable Disbursements: Accounts Payable Checks # 225995 through # 226123 which were distributed during the period of September 22, 2010 through October 5, 201(1, in the amount of $545,973.61. Payroll and benefit contributions for the period ended October 5, 2010 and included checks and direct deposits, in the amount of $278,031.78. Total Disbursement for the period $824,005.39. NEW BUSINESS 7. Resolution 2010.27 — A Resolution of the Board of Directors of the East Valley Water District establishing an investment policy for public funds 8. Discussion and possible action regarding the Directors payroll 9. Discussion and possible action regarding customer survey 10. Directors' fees and expenses for September 2010 REPORTS 11. General Manager / Staff Reports 12. Consultant Reports 13. Committee Reports • Legislative (Standing) • Community Affairs (Standing) • Policy Committee (Ad -Hoc) • GM Review (Ad -Hoc) 14. Oral comments from Board of Directors CLOSED SESSION 15. CONFERENCE WITH REAL PROPERTY [Government Code Section 54956.8] Property: Party with whom District will negotiate: Party who will be negotiating on behalf of the District: Under Negotiation: ANOUNCEMENT OF CLOSED SESSION ACTIONS ADJOURN 9.5 +/- Acres of Vacant Land APN(s): 1191- 251 -02, 191- 251 -05 and 1191 - 251 -06 San Bernardino County, State of California Potential Buyers Robert Martin/Jim Cimino Price and Terms of Payment ---------------------------------------------------------------------------- Pursuant to Government Code Section 54954.2(a), any request for a disability- related modification or accommodation, including auxiliary- aids or services, that is sought in order to participate in the above - agendized public meeting should be directed to the District's Administrative Manager at (909) 885 -4900 at least 72 hours prior to said meeting. Subject to Approval EAST VALLEY WATER DISTRICT September 15, 2010 SPECIAL MEETING and PUBLIC HEARING MINUTES The meeting was called to order at 6:00 p.m. by President Wilson. Director Malmberg led the flag salute. PRESENT: Directors: LeVesque, Malmberg, Morales, Sturgeon, Wilson ABSENT: None STAFF: Robert Martin, General Manager; Brian Tompkins, Chief Financial Officer; Ron Buchwald, District Engineer; Justine Hendricksen, Administrative Manager; Eileen Bateman, Executive Assistant, Cecilia Contreras. Administrative Office Specialist; Eliseo Ochoa, Assistant District Engineer; Gary Sturdivan, Safety and Regulatory Affairs Director LEGAL COUNSEL: Steve Kennedy GUEST (S): Joan Mosely (Highland Community News); Carolyn Moloshco (CV Strategies); various members of the public President Wilson welcomed everyone to the public hearing. PUBLIC PARTICIPATION President Wilson declared the public participation section of the meeting open at 6:01 p.m. There being no written or verbal comments, the public participation section was closed. PUBLIC HEARING FOR DISCUSSION AND POSSIBLE ACTION REGARDING THE FORMATION OF THE EASTWOOD FARMS ASSESSMENT DISTRICT PRESIDENT WILSON DECLARED THAT THE PUBLIC HEARING SECTION OF THE SPECIAL MEETING OPEN AT 6:03 P.M. The General Manager provided a detailed power -point presentation regarding the formation of the Eastwood Farms Assessment District. The power -point presentation (Special & Public Hearing Minutes: 09/15/2010) cmc I provided general information about Eastwood Farms Community Service District including but not limited to: • History about the emergency connection • Grant funding /State loan • Alternatives • Termination of the emergency water connection • Eastwood Farms bankruptcy and /or potential court action • Assessment District o No cost to landowners upfront o State loan would be added to property taxes for 30 -year payback • Funding terms o $1,057,759 State grant funding o $264,440 zero - percent interest loan payable o\e- 30 years o $198,330 loan at 10% for 10 years o $1,520,526 Total Award Value • Project Benefits • Reliable water distribution system • Reliable Water Source • Water Storage for Emergency Supply o Fire Protection • Legal Requirement o Proposition 218 Guidelines Notice mailed out to all customers on July 30, 2010 ■ Provides opportunity for protests; 50% + l required to object to the formation of the Eastwood Farms Assessment District Mr. Kennedy explained the process of the Eastwood Farms Assessment District; he explained the legal requirements of Proposition 218; that ballots are able to be received up until the close of the public hearing; that ballots must have original signatures and remain sealed until the close of the public hearing; that a property owner may changed his/her vote up until that time; that a person with no vested interest will open the ballots; that if there is a majority protest, there will be no Assessment District formed PUBLIC COMMENTS Two citizens spoke regarding the formation of the Eastwood Farms Assessment District. President Wilson declared that we take a short break at 6:21 pin. President Wilson declared the meeting back in session at 6:31 pm and closed the public hearing. (Special & Public Hearing Minutes: 09/15/2010) cmc 2 Mr. Kennedy stated that Ms Mosely will be opening the ballots. The ballots were opened at 6:31 pm by Ms Moseley with Ms Contreras and Ms Bateman entering in the voting results. The voting results were completed at 7:05 pm; the results were a 57.53% yes and 42.47% no Mr. Kennedy stated that there were 62 ballots received and that a majority protest does not exist. RESOLUTION 2010.23 APPROVING THE FORMATION OF THE EASTWOOD FARMS ASSESSMENT DISTRICT was presented to the Board for approval. M /S /C (LeVesque- Sturgeon) that Resolution 2010.23 be approved. ADJOURN The meeting was adjourned at 7:08 p.m. until the next Regular Board Meeting. Robert E. Martin, Secretary George E. Wilson, President (Special & Public Hearing Minutes: 09/15/2010) cmc 3 Subject to anproval EAST VALLEY WATER DISTRICT SEPTEMBER 28, 2010 REGULAR BOARD MEETING MINUTES President Wilson called the meeting to order at 3:00 p.m. Ms Van Dijk led the flag salute. PRESENT: Directors: LeVesque, Morales, Sturgeon, Wilson ABSENT: Director: Malmberg, STAFF: Robert Martin, General Manager; Brian Tompkins, Chief Financial Officer; Ron Buchwald, District Engineer; Gary Sturdivan, Safety & Regulatory Affairs Director; Justine Hendricksen, Administrative Manager LEGAL COUNSEL: Steve Kennedy GUEST(s): Charles Roberts (Highland Community News), Cara Van Dijk (CV Strategies), Tom DeMars (FRA), Kurt Yeager (Stradling, Yocca, Carlson & Rauth) APPROVAL OF AGENDA M/S (Sturgeon - Morales) that the September 28, 2010 agenda be approved as submitted. Director Sturgeon has requested that item # 14 be pulled from the agenda and sent to the Community Affairs Committee for review. President Wilson disagrees with Director Sturgeon. Director Sturgeon amended his motion and requested that item #14 be placed back onto the agenda. M /S /C (Sturgeon - Morales) that the agenda be approved with amended motion and that item # 14 be included. PUBLIC PARTICIPATION President Wilson declared the public participation section of the meeting open at 3:02 p.m. Gary Sturdivan gave an update regarding the District's 2010 Hazard Mitigation Plan. Minutes: 09/28/10 jph There being no further written or verbal comments, the public participation section was closed. ADJOURN TO EAST VALLEY WATER DISTRICT FIN ANCING AUTHORITY AT 3:04 PM RECONVENE TO EAST VALLEY WATER DISTRICT REGULAR BOARD MEETING AT 3:15 PM APPROVAL OF SPECIAL BOARD MEETING MINtT'I FS FOR SEPTEMBER 13, 2010 M /S /C (Sturgeon - Morales) that the September 13. .'.010 Special Board Meeting minutes be approved as submitted. APPROVAL OF SEPTEMBER 14, 2010 BOARD MEETING MINUTES M/S /C (Sturgeon- Morales) that the September 14, 2010 Board Meeting Minutes be approved as submitted. RESOLUTION 2010.24 — A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT NOTICE OF COMPLETION EXECUTED BY THE DISTRICT FOR BASE PAVE TRENCHING, CONCRETE POURING FOR CROSS GUTTER REPAIR, GRIND AND OVERLAY TRENCH ON LIVE OAK ROAD FROM SUMMIT DRIVE TO TERRACE DRIVE M /S /C (Sturgeon- Morales) that Resolution 2010.24 be approved. RESOLUTION 2010.25 — A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT NOTICE OF COMPLETION EXECUTED BY THE DISTRICT FOR PUMPING EQUIPMENT REPAIRS, PULLING OF TUBE AND SHAFT FROM COLUMN, CLEAN USABLE COLUMN, CLEAN AND STRAIGHTEN TUBE ANI) SHAFT, WIRE BRUSHING, SWABBING AND RE- BAILING TO BOTTOM AT PLANT 24B LOCATED AT THE NORTHEAST CORNER OF HARRISON STREET IN THE CITY OF SAN BERNARDINO M /S /C (Sturgeon - Morales) that Resolution 2010.25 be approved. DISBURSEMENTS M/S /C (Sturgeon - Morales) that General Fund Disbursements #225830 through 225994 distributed during the period of September 8, 2010 . hrough September 20, 2010 in the amount of $896,179.04 and Payroll Fund Disbursements I Dr the period ended September 20, 2010 in the amounts of $238,147.06 and $6,208.59 totaling $1,140,534.69 be approved. 2 Minutes: 09/28/10 REVIEW AND APPROVAL OF GENERAL MANAGER'S EXPENSE REPORT M /S /C (Sturgeon - Morales) that the General Manger's expenses be approved as submitted. RESOLUTION 2010.26 — A RESOLUTION OF THE BOARD OF DIRECTORS APPROVING THE EXECUTION AND DELIVERY OF AN INSTALLMENT PURCHASE AGREEMENT FOR THE PURPOSE OF CAUSING THE ISSUANCE OF APPROXIMATELY $38,000,000 AGGREGATE PRINCIPAL AMOUNT OF REFUNDING REVENUE BONDS AND APPROVING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION THEREWITH AND CERTAIN OTHER MATTERS M /S /C (Morales - Levesque) that Resolution 2010.26 be approved. DISCUSSION AND POSSIBLE ACTION REGARDING NOTICE OF DECISION TO APPRAISE GREENSPOT ROAD & BRIDGE REALIGNMENT PROJECT (APN: 0297- 061 -22 & 0297 - 061 -23) Director Morales has requested to review the parcel map associated with this project. No action taken. RESOLUTION 2010.21 — A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT IN RECOGNITION OF HENRY L. SOWLE'S TWENTY -FIVE YEARS OF SERVICE M /S /C (LeVesque- Morales) that Resolution 2010.21 be approved. DISCUSSION AND POSSIBLE ACTION REGARDING A PBS TELEVISION SHOW HIGHLIGHTING ENERGY AND WATER CONSERVATION PRACTICES The General Manager stated that there was a power -point presentation regarding the television show at the recent BTAC meeting and that they are looking for water agencies to fund the portion of the program dedicated to water conservation practices. Vice President LeVesque stated that he will not consider the project unless it is referred to the Community Affairs Committee for review. Director Morales reviewed the participating agencies and format of the program and would like to know what benefit East Valley Water District would get out of the program. Director Morales would like more information regarding the program. Director Sturgeon suggested that this item be referred to the Community Affairs Committee for further review. 3 Minutes: 09/28/10 No action taken. DISCUSSION AND POSSIBLE ACTION REGARDING THE DISTRICT'S 2010 BIENNIAL NOTICE OF CONFLICT OF INTEREST CODES Mr. Kennedy provided an update regarding the District's 20' I Conflict of Interest Code and whether any amendments are reeded at this time. M /S /C (LeVesque - Sturgeon) that the Board has instru ned staff to send the required notice back to the Clerk of the Board, indicating that no amendment is required. DISCUSSION AND POSSIBLE ACTION REGARDING THE FINANCIAL STATEMENTS FOR THE PERIOD ENDING AUGUST 31, 2010 Mr. Tompkins reviewed the financial statements with the Boar J. M/S /C (Sturgeon - LeVesque) that the financial statements for the period ending August 31, 2010 be accepted. GENERAL MANAGER / STAFF REPORTS The General Manager reported on the District's operations to date; that he attended a meeting regarding the 41 year old Western Judgment (Western Water Master) and how it is affecting the operations, water credits, recharge and management of' tl e basin; that agencies will be meeting on a monthly basis regarding this issue; that as preciously discussed the Board would like to review the General Manager's contract this vear "Che Board appointed an Ad- Hoe committee to review the General Manager's contrac . the committee consists of President Wilson and Vice President LeVesque. Information only. CONSULTANT REPORTS Ms Van Dijk from CV Strategies provided an overview of the ;district's public relations projects including media coverage, committee updates. customer survey, strategic communications plan and web master communications and planning. Information only. *61imulV00a)a0941 as] :71W a. Legislative (Standing) — Director Morales stated that the State is still without a budget; that the District is working on how to speee tip the process for its grant funding; that Senator Dutton's office provided assistance in this area and it looks as if the District's grant project could be first in line when the state budget is passed; that the Task Force is trying to set up a meeting with Senator Feinstein's office regarding the Santa Ana Sucker decision that is due out December : ". b. Community Affairs (Standing) —No reports at this time 4 Minutes: 09/28/10 c. Policy (Ad -Hoc) — The committee met last week regarding Debt Management Policy and Investment Policy and is working on finalizing the Drug & Alcohol Policy. ORAL COMMENTS FROM BOARD OF DIRECTORS Director Sturgeon stated that he attended a campaign function for Sam Racadio. Director Morales stated that the Board President has appointed Director Malmberg to serve on the Legislative Committee. Information only. ASSOCIATION OF THE SAN BERNARDINO COUNTY SPECIAL DISTRICTS MEMBERSHIP MEETING HOSTED BY CUCAMONGA VALLEY WATER DISTRICT AND CHINO BASIN WATER CONSERVATION DISTRICT, UPLAND CARNEGIE LIBRARY, OCTOBER 18, 2010 WESTCAS 2010 FALL CONFERENCE "SUSTAINABLE WATER: A YEAR LATER — WHAT'S NEW ? ", OCTOBER 27-29,2010 The Board took a break at 3:45 p.m. CLOSED SESSION The Board entered into Closed Session at 4:01 p.m. as provided for in the California Open Meeting Law, Government Code Section 54945.9(a), to discuss the items listed on the agenda. ADJOURN TO REGULAR SESSION President Wilson declared that the meeting adjourn to regular session. ANNOUNCEMENT OF CLOSED SESSION ACTIONS The items listed on the agenda were discussed in closed session with no action being taken. ADJOURN The meeting was adjourned at 4:10 p.m. Robert E. Martin, Secretary George E. Wilson, President 5 Minutes: 09/28/10 EXHIBIT "A" RESOLUTION 2010.28 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT NOTICE OF COMPLETION BE IT HEREBY RESOLVED, by the Board of Directors of the East Valley Water District, as follows: WHEREAS, based upon the certificate of completion executed by the District for pumping equipment, brush and bail, install a new 6 stage bowl assembly, rebuild packing box assembly, sand blast and powder coat discharge head, and install new rubber line shaft bearing. Plant 132 -5 located at 7479 San Francisco Street in the City of Highland. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors hereby determine that said contract is completed and the President and Secretary are hereby authorized to execute a Notice of Completion on behalf of the District, and the Secretary is hereby authorized and directed to record said Notice of Completion in the office of the County Recorder, County of San Bernardino, State of California. The foregoing resolution was duly adopted at a meeting of the Board of Directors of the East Valley Water District upon motion duly made, seconded and carried on October 12, 2010. Ayes: Noes: Absent: Attest: w2503dm 10/05/10 EAST VALLEY WATER DISTRICT George E. Wilson, Board President Robert E. Martin, Board Secretary (Seal) RECORDING REQUESTED BY ] Martha Duran -EVWD ] AND WHEN RECORDED MAIL TO ] Name East Valley Water District ] PO Box 3427 ] Street San Bernardino, CA 92413 ] Address Attn: Engineering Department ] W2503 ] City & ] State 1 FEE EXEMPT PURSUANT TO GOVERNMENT CODE SECTION 6103 SPACE ABOVE THIS LINE FOR RECORDER'S USE NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for Complete requirements.) Notice is hereby given that: 1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2. The full name of the owner is East Valley Water District 3. The full address of the owner is P.O. Box 3427 San Bernardino CA 92413 San Bernardino County. 4. The nature of the interest or estate of the owner is, in fee. None -- (If other than fee, stnke'ln fee' and insert, for example, `purchaser under contract of purchase, 'or lessee') 5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: NAME ADDRESS East Valley Water District 3654 Hiahland Ave. Suite 18, Hiahlantl CA 92:146 6. A work of improvement on the property hereinafter described was completed on September 22 2010. The work done was: 7. The name of the contractor, if any, for such work of improvement was So -Cal Pump & Well Drilling Inc. August 26, 2010 (If no contractor for work of improvement as a whole. insert 'none' (Date of Conlract) 8. The property on which said work of improvement was completed is in the city of Highland. County of San Bernardino , State of California, and is described as follows: Cull subdivision Tract 1794 Lots 2.3. and 4 Assessors Mao Book 1192 Paoe 35 in the Recorders office of said County. 9. The street address of said property is 7479 San Francisco Street._ (If no street address has been difficulty assigned. insert, 'none' i Date: October 12 2010 Verification for Individual Owner Signature of owner or corporate officer of owner named In paragraph 2 or his agent George E. "Skip" Wilson, Board President East Valley Water District VERIFICATION I, the undersigned, say: I am the Board Secretary the declarant of the foregoing ('President of', " Manager of", "A partner of, "Owner of'. Etc.) notice of completion; I have read said notice of completion and know the contents thereof; the same is true of my knowledge. I declare under penalty of perjury that the foregoing is true and correct. Executed on October 12 2olo, at Highland , California. (Date of signature.) (City, where signed.) (Personal signature of the individual who is swearing that the convents cf the notice of completion are true.) Robert E. Martin, Board Secretary East Valley Water District East Val ley Water District Board Memorandum From: Brian W. Tompkins / Chief Financial Off I Subject : Disbursements. Recommandation: Approve the attached list of accounts payable checks and payroll issued during the period September 22, 2010 through October 5, 2010. Date: OCTOBER 12, 2010 Background: Accounts payable checks are shown on the attached listing and include numbers 225995 to 226123 for A total of $545,973.61. The source of funds for this amount is as follows: Unrestricted Funds $545,973.61 Payroll and benefit contributions paid for this period totaled $278,031.78. Total disbursements $824,005.39. i` DI 0 O O D D 0 coo C o m o O O C)00 00 L a. 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Tompkins, CFO/Treasurer Subject: Investment Policy Recommendation: Approve Resolution No. 2010.27 adopting the attached investment policy for the 2010 -2011 fiscal year Background: Government Code section 53646(a) requires that the Treasurer of a local agency annually render to the legislative body a Statement of Investment Policy for consideration at a public meeting. Attached and submitted for your consideration is East Valley Water District's investment pol cy as adopted in previous years. The District's policy is more restrictive than the Government Code in that certain types of investments allowed by Code section 53601 are not incorporated into the attached policy. The excluded investment types are: Banker's acceptances — maximum 180 -day maturity Commercial paper — restricted to highest Moody's rating; issued by US Corporations with in- excess-of $500 million in assets — maximum 270 -day maturity. Repurchase and reverse repurchase agreements Mortgage securities Medium term corporate notes — maximum of 5 years maturity Staff is not recommending any substantive changes to the policy at this time. Also attached for your review are copies of: Certification from Citizens Business Bank that they have read, understand, and will make investment recommendations in accordance with, the attached Investment Policy. And Updated procedures established by the General Manager regarding District investments RESOLUTION 2010.27 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING AN INVESTMENT POLICY FOR PUBLIC FUNDS WHEREAS, the Board of Directors of the East Valley Water District ( "the District ") desires to maintain a formal policy regarding the investment of public funds pursuant to the requirements of Government Code Sections 5921 and 53600 et seq.; and WHEREAS, the Board of Directors of the District has employed qualified staff to invest those funds in accordance with the law and the terms of the District's investment policy, as well as in a manner that advances the District's investment objectives of safety, liquidity and yield. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the District that the East Valley Water District Investment Policy attached hereto as Exhibit A and incorporated in full herein by this reference is hereby adopted as the formal investment policy of the District. BE IT FURTHER RESOLVED that the General Manager and the Treasurer /Chief Financial Officer of the District are hereby authorized and directed to invest the District's funds in a manner consistent with the terms hereof and in accordance with any further directions of the District's Board of Directors. BE IT FURTHER RESOLVED that this Resolution supersedes Resolution No. 2009.19 adopted by the Board of Directors of the District on August 13, 2009. This Resolution shall take effect immediately upon its adoption. ADOPTED this 12th day of October 2010. Ayes: Noes: Abstain: Absent: George E. Wilson, Board President Attest: _ Robert E. Martin, Board Secretary Memo To: CFO, Finance Department From: Robert E. Martin, General Manager CC: Date: 9/30/2010 Re: Updated procedures related to District Investments The following procedures, established in accordance with the Delegation of Authority section of the Districts Investment Policy, will be followed in order to ensure safekeeping of the District Deposits and Investments. Agreements The Administration and Finance departments will ensure that the following agreements have updated signatures whenever a change in Board or Management occurs Bank- Depositor Agreement • Funds Transfer Agreement In addition, the Finance Department will ensure that a current 'Contract for Deposit of Monies', concerning collateralization of District deposits is on file in both departments. Investment Transactions • Certification will be obtained from each broker / investment manager affirming that they have reviewed and will abide by the District's investment policies • The CFO will communicate at least quarterly with investment managers regarding investment mix and District cash flow requirements Transfers To /From Investment Accounts • Proper authorizations will be obtained on a completed 'Transfer Of Funds' form prior to initiating a transfer involving one of the District's investment accounts. • The Finance Department will maintain a log of all transfers Reporting The CFO will prepare cuarterly reports on investments in accordance with California Govt. Code § 53646(b)(1). Reports should reflect ending account balances and purchase and sale of securities as applicable. The CFO will present District Investment Policies to board of directors on an annual basis in accordance with California Govt. Code § 53646(a)(2). • Page 2 Wealth Management Group C. 225 East Colorado Boulevard - P.O. Box 671 Pasadena, California 91102 -0671 CITIZENS Phone (626) 405 -8335 Bus 1 N [: s s BANK Fax (626) 405 -8386 E -mail: wealthmanagement@cbbank.com CERTIFICATION FORM For EAST VALLEY WATER DISTRICT In accordance with Section 7.0 of the East Valley Water Investment Policy Statement the Wealth Management Group of Citizens Business Bank agrees that as Investment Management Agent (not a broker /dealer) for the East Valley Water District we have reviewed and understand the Investment Policy Statement for the District. We also agree that we will present investment recommendations and transactions to the East Valley Water District that are appropriate under the terms and conditions of the Investment Policy. g. Jo4R. Gurley Vice President Investments C. Richard McDonald Vice President Investments "The Dank Business Hanks On. " Date P X3 Date 4*EastVa lley D Vater District POLICY AND PROCEDURE EAST VALLEY WATER DISTRICT APPROVAL DATE MANUAL POLICY NO. 10/12/2010 FISCAL POLICIES MANUAL APPROVED BY POLICY TITLE EFFECTIVE DATE BOARD OF DIRECTORS INVESTMENT POLICY October 12,2010 Page 1 of 7 INVESTMENT POLICY: Purpose: The purpose of this policy is to establish uniform procedures for investing District funds in a manner that will provide the highest investment return, with the maximum security, while meeting the daily cash flow demands of the District. This policy is intended to conform to all statutes governing the investment of East Valley Water District funds. Scope: This policy applies to all financial assets of the East Valley Water District. These funds are accounted for in the annual District audit. There are no funds excluded from this policy. Prudence: A. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs; not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. B. The standard of prudence to be used by investment officials shall be the "prudent investor" standard (CGC §53600.3) and shall be applied in the context of managing an overall portfolio. C. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments LAD East Valley L Water District POLICY AND PROCEDURE EAST VALLFI' WATER DISTRICT APPROVAL DATE ANUAI. POLICY NO. 10/12/2010 ISCAL POLICIES MANUAL _ APPROVED BY POLICYTITLE EFFECTIVE DATE BOARD OF DIRECTORS INVESTMENT POLICY October 12,2010 Page 2of 7 Objectives A. As specified in CGC §53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be: 1. Safety: Safety of principal is the foremost objective of the investment program. Investments of the East Valley Water District shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 2. Liquidity: The investment portfolio will remain sufficiently liquid to enable the East Valley Water District to meet all operating requirements that might be reasonably anticipated. 3. Return on Investments: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and the cash flow characteristics of the portfolio. Delegation Of Authority A. Authority to manage the investment program is derived from California Government Code Sections 53600, et seq. Management responsibility for the investment program is hereby delegated to the General Manager, who shall establish written procedures for the operation of the investment program consistent with this investment policy. B. Procedures should include references to: safekeeping repurchase agreements, wire transfer agreements, collateral /depository agreements and banking services contracts, as appropriate. C. Such procedures shall include explicit delegation of authority to persons V *Water EastValley District POLICY AND PROCEDURE EAST VALLEY WATER DISTRICT APPROVAL DATE 10/1212010 MANUAL FISCAL POLICIES MANUAL POLICY NO. APPROVED BY POLICY TITLE 1. EFFECTIVE DATE BOARD OF DIRECTORS INVESTMENT POLICY October 12,2010 Page 3of 7 responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the General Manager. The General Manager shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. D. Under the provisions of California Government Code 53600.3, the General Manager is a trustee and a fiduciary subject to the prudent investor standard. Ethics And Conflicts Of Interest A. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Authorized Financial Institutions And Dealers A. The General Manager and /or Financial Officer will maintain a list of financial institutions, selected on the basis of credit worthiness, financial strength, experience and minimal capitalization authorized to provide investment services. No public deposit shall be made except in a qualified public depository as established by state laws. B. For brokers /dealers of government securities and other investments, the designated official shall select only broker /dealers who are licensed and in good standing with the California Department of Securities, the Securities and Exchange Commission, the National Association of Securities Dealers or other applicable self - regulatory organizations. C. Before engaging in investment transactions with a broker /dealer, the General Manager shall have received from said firm a signed Certification Form. This form shall attest that the individual responsible for the East Valley Water District's account with that firm has reviewed the East Valley Water District's Investment Policy and that the firm understands the policy and intends to � —*East Val ley Water District POLICY AND PROCEDURE EAST VALLEY WATER DISTRICT APPROVAL DATE MANUAL POLICY NO. 10/1212010 FISCAL POLICIES MANUAL __ APPROVED BY POLICY TITLE EFFECTIVE DATE BOARD OF DIRECTORS INVESTMENT POLICY October 12,2010 Page 4of 7 present investment recommendations and transactions to the East Valley Water District that are appropriate under the terms and conditions of the Investment Policy. Authorized and Suitable Investments: A. The East Valley Water District as empowered by California Government Code §53601, et. Seq., established the following as authorized investment: 1. Bonds and Certificates of Participation issued by the East Valley Water District. 2. United States Treasury Bills, Notes & Bonds 3. Registered state warrants or treasury notes or bonds issued by the State of California 4. Bonds, Notes, warrant or other evidence of debt issued by a local agency within the State of California. 5. Negotiable Certificates of Deposit issued by federally or state chartered banks or associations. Not more than 30% of surplus funds can be invested in certificates of deposit 6. Shares of beneficial interest issued by diversified management companies (Money Market Mutual Funds) investing in the securities and obligations authorized by this section. Such funds must carry the highest rating of at least two of the three largest national rating agencies. Not more than 15% of surplus funds can be invested in Money Market Mutual funds. 7. Funds held under the terms of a Trust Indenture or other contract or agreement may be invested according to the provisions of those indentures or agreements. 8. Collateralized bank deposits with a perfected security interest in accordance with the Uniform Commercial Code (UCC) or applicable federal security regulations. toEast Valley Water District POLICY AND PROCEDURE EAST VALLEY WATER DISTRICT APPROVAL DATE 10/12/2010 MANUAL FISCAL POLICIES MANUAL POLICY NO. APPROVED BY POLICY TITLE EFFECTIVE DATE BOARD OF DIRECTORS INVESTMENT POLICY October 12,2010 Page 5of 7 B. Prohibited Investments. Under the provision of CGC §53601.6 and §53631.5, the East Valley Water District shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest -only strips derived from mortgage pools or any investment that may result in a zero interest accrual if held to maturity. CoI lateral ization: A. All certificates of deposit must be collateralized by U.S. Treasury Obligations. Collateral must be held by a third party trustee and valued on a monthly basis Safekeeping And Custody: A. All security transactions entered into by the East Valley Water District shall be conducted on a delivery- versus - payment (DVP) basis. B. All securities purchase or acquired shall be delivered to East Valley Water District by book entry, physical delivery, or by third party custodial agreement as required by C:GC §53601. Diversification: A. The East Valley Water District will diversify its investment by security type and institution. It is the policy of the East Valley Water District to diversify its investment portfolio. Assets shall be diversified to eliminate the risk of loss resulting from over concentration of assets in a specific maturity, a specific issuer or a specific class of securities. B. Diversification strategies shall be determined and revised periodically. In establishing specific diversification strategies, the following general policies and constraints shall apply: 1. Portfolio maturities shall be matched versus liabilities to avoid undue concentration in a specific maturity sector ;ADEastValley Water District POLICY .AND PROCEDURE EAST VALLEY WATER DISTRICT APPROVAL DATE MANUAL POLICY NO. 10112/2010 FISCAL POLICIES MANUAL APPROVED BY POLICY TITLE EFFECTIVE DATE BOARD OF DIRECTORS INVESTMENT POLICY October 12,2010 Page 6of 7 2. Maturities selected shall provide for stability of income and liquidity. 3. Disbursement and payroll dates shall be covered through maturities investments, marketable U.S. Treasury bills or other cash equivalent instruments such as money market mutual funds Reporting: A. In accordance with CGC §53646(b)(1), the General Manager and /or Financial Officer shall submit to each member of the Board of Directors a quarterly investment report. The report shall include a complete description of the portfolio, the type of investments, the issuers, maturity dates, par values and the current market values of each component of the portfolio, including funds managed for EVWD by third party contracted managers. The report will also include the source of the portfolio valuation. B. As specified in CGC §53646(e), if all funds are placed in LAIF and /or FDIC insured accounts, the foregoing report elements may be replaced by copies of the latest statement from such institutions. C. The report must also include a certification that (1) all investment actions executed since the last report have been made in full compliance with the Investment Policy and (2) the East Valley Water District will meet its expenditures obligations for the next six months is required by CGC §53646(b)(2) and (3) respectively. The General Manager and /or Financial Officer shall maintain a complete and timely record of all investment transactions. Investment Policy Adoption: A The Investment Policy shall be adopted by resolution of the East Valley Water District. Moreover, the Policy shall be reviewed on an annual basis, and modifications must be approved by the Board of Directors. TADEastValley Water District POLICY AND PROCEDURE EAST VALLEY WATER DISTRICT APPROVAL DATE MANUAL POLICY NO. 10/1212010 FISCAL POLICIES MANUAL 53601(a) APPROVED BY POLICY TITLE 11 EFFECTIVE DATE BOARD OF DIRECTORS INVESTMENT POLICY October 12,2010 Page 7of 7 None None Table 1 Investments Authorized By East Valley Water District In Accordance With California Government Code §53601 CGC § Investment Type Maximum Maturity Auth. Limit % Required Rating 53601(a) Local Agency Bonds 5 Years None None 53601 (b) U.S. Treasury Bills, Notes, Bonds 5 Years None None 53601 (c) State Registered Warrants, Notes or Bonds 5 Years None None 53601 (d) Notes, Bonds of Other Local Calif. Agencies 5 Years None None 53601 (e) U.S. Agencies 5 Years None None 53601 (h) Negotiable Certificates of Deposit 5 Years 30% None 53601 (k) Money Market Mutual Funds & Mutual Funds 5 Years 15% 2 -AAA 53601 (m) Collateralized Bank Deposits 5 Years None None 53601 (d) Local Agency Investment Fund (LAIF) N/A None None Mutual funds maturity may be defined as the weighted average maturity ; money market mutual funds must have an average maturity of 90 days or less, per SEC regulations jEast Val W I ey Water District Board Memorandum No. B-43 -2010 From: Becky Kasten, Accounting Supervisor Subject : Directors Payroll Date: October 12, 2010 Recommendation : Consideration from the Board to combine Employee and Directors payroll Background: Some months ago I was asked to review the District's payroll processing fees and charges and bring the information back to the Board to review. Currently, the Director's payroll is processed separate from EVWD's employee payroll. The Directors payroll is submitted on the Wednesday following the board meeting in which the expenses were approved, and paid on the following Monday. After reviewing the payroll processing fees, I have determined that the District could reduce its annual payroll costs by approximately $2,700 by processing the Director's payroll at the same time as the employee payroll. However, making this change would affect the pay dates for the Director's. The pay dates would be on either the first or second Friday following the board meeting in which the expenses were approved. If the Directors are interested in making this change, the appropriate time to do so would be with the January 2011 payroll. Fiscal Impact: Annual savings of $2,700 rage i of I , Frorn: Sent: Monday September 20 2010 6 31 AM To: 'Cara Van Dijk' Subject: EVWD Survey Update Hi Bob, We have met with the survey logistics company we're working with on East Valley's customer survey, and have deteum led a cc uple of options for the project. There are basically two ways to go: Random Dialing or East Valley Supplied Sampling Regarding random dialing, the incremental cost comes in having to purchase the randomly created numbers and then having to screen out the folks who aren't rate payers for EVWD. We'd have to do this by asking additional questions about �A,here they live relative to certain main streets, as we can't just ask if they are customers of EVWD and then ask who their water provider is (which is a primary test question) There is also the option of providing a call list from East Valley. We would simply have to reconcile anyone on the Do Not Call list, in order to avoid that issue you'll note on the attached document that you can save money by providing a list Please review when you have a chance, and advise which option you'd like us to pursue In the meantime, we are _ontiruing to develop the interview questions so that we are ready to gc once we settle on a call list strategy Thanks Fun vy M''� 4� FLAGSHIP Rill N- K(J] September 20, 2010 Name /Address Erin Gllhuly, President CV Strategies 45 -025 Manitou Drive, Ste 13 Indian Wells, CA 92210 erin @cvstrat.com Quote for Survey of Water District Customers Survey Length and 8 or 12 M. notes, n - 400 Sample Size See htt �_�. _ ^, ^ +surveysystem nom /cscaic him for i :_)nf. dente interval calculator Sampling Plan option A: ?a' ing from list of existing custorle -: led by water district Option B: C,,l -F from list of randomly created nuribe -rs based on zip codes provided sc-een for EVWD rate payers Incidence Rate 90% or SO`�, cependiog on sampling plan chosen _ Deliverables Flagsh p'esearch w,ll draft a quesi�crna�re'cr ; �. a,cproval, convert the question -a,'e to a CATI routine conduct th_- r" .e r- e. -., code verbatim answers, and prepa— an SPSS data file `Ne viii, then p,cc_. e ecort -ready tables (includes extensive tables for appendix and focused tables I -. - body of report). We will also prepare a yr tten report of the findings of the su�e_ti_ Time Line We will need two weeks for interviewing afte- - ecelp, of a final questionnaire Data processing will require three business days .Je v, ill need one calendar week to prepare the written report Payment Terms We request a deposit of 50% of project costs pn,, tC A,Crk beginning. The balance will be invoiced oce t of charges '_r the project o ' rerables have been e accepted rd will be due 30 days from invoice de'e Costs: _ Sampling Plan EVWD Cust. List ._ _ Randomly Created its Survey Length 8 minutes T_ 12 minutes _ 8 minutes 12 minutes Questionnaire Design 5500 _ 5750 5500 _ f 5750 RDD List - NA VA _ -_ _5900 5900 CAT' Programming $400 _ $600 _ - _ 54_00 5600 _ Interviewing 5_6,000 _ __$_7,200 _ _ _ 5'.60C_ $8,800 _ Code Text Answers (Max of 4) 5400 $400__ - _5400 $400 SPSS Data File _ _ _ 5400 $600 - 5400 _5600 Report -ready Tables _ $1,200 $1,600 _ 51,200 $1,600 Written Report 52,500 $3,000 $2,500 $3,000 - Total $11,400 _ $14,150 1;13,900 $16,650 2840 Fiflh Avenue, Suite 200. Sar D!ego. CA 92103 619 -8-19 -1111 bridge Aa2shipiesearch.com 619 -849 -1112 (Fax) XN� naeshipresearch.com 888 - 849 -482- (Toll Free) U F- Lu U O D U Q � N Q O W N J � J O jm cn .4 z 0 0 J_ z Z w LU W EL EL Z LU Co 0 Z Z) Q. N W of O U cn W W it W O L- 0) O O LO N a Oi N O W X m J n W O W CO W °o vi nW °o O -q" O O O O O O v� v� n o 0 D. 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N N Q W og t` LL O r V M O m O W CD O LL U z N jp ioUO 4= n m m 0! Q Z O Cl) J w O w 0 U) W N Z W d N X w O U) Of N O (if U Q W W Q� } 0 J LL Q O aj o� O m LLIL U _U CO o00 J coo Q N N N W O 0) g N ' cD Z O Cl) O J C7 Z W Y J � �a w o Z � � o N N OO LUp C LLI LL LL V M 0 0 0 0 w = LO LL U Q O iz r- r w co U N N N N O O Z O L w a o m L `m rn.E co W W ca mo���� �' LL LL Z O U O o 0 0 0 Z O O) p d c N U N N OO LUp C LLI N^ r n Q w M 0 0 0 0 02 (n C F C � LL r n n co cc) O iz r- r O) p d c N U o. a) a) W CL E (n C F C � Z co N N N N O L w a L `m rn.E Q ca mo���� �' I EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Matt Le vesque MONTH September, 2310 Board Meetings 14,28 Conferences and Other Meetings DATE ORGANIZATION PURPOSE 2 -Sep _ League of California Cities CCC Aniv. 8 -Sep _ CVWD -WMWD Utilities Meeting 9 -Sep CVWD -WMWD Utilities Meeting 10 -Sep CVWD -WMWD Utilities Meeting 13 -Sep EVWD Strategic Planning 15 -Sep Eastwood Farms Asses. District Vote 22 -Sep SIB Chamber Meeting 23 -Sep SBVMW D Basin Advisory Committee TOTAL # OF MEETINGS 10@ $175.00 each $ '750.00 Travel Expenses: (Details on Back) $ 603.00 Total Director's Meetings & Expenses $ 2353.00 Director's Signature Date of Board Approval Administrative Manager Miscellaneous Notes Less Any Advance Payments $ TOTAL DUE DIRECTOR $ 2353.00 TRAVEL EXPENSES Lodgings: (Detailed receipts attached') DATE FUNCTION ATTENDED AMOUNT 10 -Sep CVWD -WMWD Utilities Meeting $ 390.49 TOTAL LODGING $ 390.49 ✓ Personal Auto: (Detailed receipts attached') PARKING DATE FUNCTION ATTENDED MILES FEES 10 -Sep CVWD -WMWD Utilities Meeting $ 23.25 $ CURRENT RATE: $0.50 Meals: (Detailed receipts attached') TOTAL FEES $ 23.25 ✓ TOTAL MILES $ DATE FUNCTION ATTENDED AMOUNT R $ $ $ $ TOTAL MEALS $ Other: (Detailed receipts attached') DATE FUNCTION ATTENDED AMOUNT $ 181.4 �/ 25 -Aug CVWD -WMWD Utilities Meeting 10 -Sep CVWD -WMWD Utilities Meeting $ 172.47 V/ 10 -Sep CVWD -WMWD Utilities Meeting — t�tE $ 16.79-0 TOTAL OTHER $ 189.26 �11 ff AA I- I EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR: _Morales MONTH September_ 2010 Board Meetings: _14, Conferences and Other Meetings DATE ORGANIZATION PURPOSE _ 09 -13 — EVWD Mathis Group – Strategic Planning _ 09 -15 _ EVWD Eastwood Farms Public Hearing _ _ 09 -20 _ EVWD Standard & Poor's – Rating Conference _ 09 -22 --CA State LEG_ Joint Leg. Audit Committee on Local Gov Accountability (web review) _ 09 -30 --FED House Sub Comm on Water Resources – Development impact on water quality TOTAL # OF MEETINGS _7_ @ $175.00 each $1,225.00_ Travel Expenses: (Details on Back) _ Total Director's Expenses $_ Total Director's Meetings & Expenses $1,225.00__ Director's Signature Less any Advance Payments $ Date of Board Approval TOTAL DUE DIRECTOR $1,225.00 = TRAVEL EXPENSES Lodgings: (Detailed receipts attached *) DATE FUNCTION ATTENDED AMOUNT Ej R $ TOTAL LODGING Personal Auto: (Detailed receipts attached') DATE FUNCTION ATTENDED MILES PARKING FEES TOTALFEES $ TOTAL MILES x $.50 per mile $ Meals: (Detailed receipts attached') DATE FUNCTION ATTENDED TOTAL MEALS Other: (Detailed receipts attached") DATE FUNCTION ATTENDED TOTALOTHER AMOUNT— AMOUNT— ORIGINAL RECEIPTS REQUIRED TRAVEL EXPENSES $ (Enter this total on the front of form) EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Larry Malmberg MONTH September, 2010 Board Meetings *9- 14 -10; Conferences and Other Meetings DATE ORGANIZATION PURPOSE 1 Sep *SBACC Chamber of Commerce meeting. 2 -Sep *EVWD Lunch with Bob Martin re: bonding issue. 8--Sep SBACC Chamber of Commerce meeting. 8-Sep *EVWD ERNIE Meeting at EVWD. 1:3 -Sep *EVWD Meeting with Dr. Mathis 1:5-Sep SBACC Chamber of Commerce meeting. 15 -Sep *EVWS Eastwood Farms Sepcial Assessment District Meeting 19 -Sep *EVWD Meeting with Dr. Mathis re: orgazination review. 22 -Sep *SBACC Chamber of Commerce meeting. TOTAL # OF MEETINGS 8 @ $175.00 each $ 1400.00 Travel Expenses: (Details on Back) $ Total Director's Meetings & Expenses $ 1400.00 Director's Signature Date of Board Approval Administrative Manager Miscellaneous Nodes Less Any Advance Payments $ TOTAL DUE DIRECTOR $ 1400.00 TRAVEL EXPENSES Lodgings: (Detailed receipts attached *) DATE FUNCTION ATTENDED Personal Auto: (Detailed receipts attached *) DATE FUNCTION ATTENDED CURRENT RATE: $0.50 Meals: (Detailed receipts attached *) DATE FUNCTION ATTENDED TOTAL MILES I1 IfelllzhII e TOTAL LODGING $ PARKING MILES FEES A TOTAL FEES $ AMOUNT $ TOTAL MEALS $ Other: (Detailed receipts attached *) DATE FUNCTION ATTENDED AMOUNT TOTAL OTHER $ ORIGINAL RECEIPTS REQUIRED TRAVEL EXPENSES $ EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Sturgeon MONTH 09 12010 Board Meetings 14 - 15 - 28 - 13 Conferences and Other Meetings DATE ORGANIZATION PURPOSE 1 EVWD Meet with GM and CFO 2 League of California Cities -- Reception with Attorney General 13 Special Districts Monthly Meeting 27 Fred Pryor Seminars Becoming the Ultimate Trainer 23 SBVMWD Advisory Board 23 EVWD Policy Committee Travel Expenses: (Details on Back) Directors Signature Date of Board Approval Administrative Manager Miscellaneous Notes October 12, 2010 TOTAL # OF MEETINGS 7 @ $175.00 each $ 1 , 225.00 09/13 Special Districts Mtg. $ 35.00 ✓ Total Directors Meetings & Expenses $ 1 , 260.00 Less Any Advance Payments $ TOTAL DUE DIRECTOR$ 1,260.00 EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Wilson MONTH Sept , 2010 Board Meetings 9/14;9/28 Conferences and Other Meetings DATE ORGANIZATION PURPOSE 1 -Sep EVWD Mtg. with gen mgr 13 -Sep EVWD Mtg with Dr. Mathis 15 -Sep EVWD Eastwood Farms hearing 21 -Sep EVWD Mtg with gen mgr 23 -Sep SBVMWD Technical Advisory Commiltee 27 -Sep SBVMWD SAS Task Force TOTAL # OF MEETINGS 8 @ $175.00 each $ 1400.00 Travel Expenses: (Details on Back) $ Total Director's Meetings & Expenses $ 1400.00 Directors Signature �1 Less Any Advance Payments $ Date of Board Approval TOTAL DUE DIRECTOR $ 1400.00 Administrative Manager Miscellaneous Notes