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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 02/08/2011East Valley Water District 3654 HIGHLAND AVE., SUITE #12, HIGHLAND, CA BOARD MEETING February 8, 2011 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 12:00 p.m. on Tuesday 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. Approval of Board meeting minutes for January 25, 2011 4. Accounts Payable Disbursements: Accounts Payable Checks # 227136 through # 227302 which were distributed during the period of January 5, 2011 through January 12, 2011, in the amount of $1,143,094.82. Payroll and benefit contributions for the period ended January 12, 2011 and included checks and direct deposits, in the amount of $185,207.95. Total Disbursement for the period $1,328,032.77 5. General Managers Expenses OLD BUSINESS 6. Resolution 2011.02 — A Resolution of East Valley Water District authorizing the General Manager to sign funding agreement, certifications, and amendments for funding under the safe drinking water state revolving fund, authorizing the General Manager to approve claims for reimbursement; authorizing the General Manager to execute budget and expenditure summary; authorizing the General Manager to sign the contractor's release form; and dedicating revenues from water rates as the source of revenue to repay said loan 7. Resolution 2011.01 — 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 1 8. Ordinance 378 — An Ordinance of the Board of Directors of the East Valley Water District Establishing Guidelines for the Conduct of its Public Nleetim and Activities NEW BUSINESS 9. Discussion and possible action regarding the District's Strategic Planning process 10. Discussion and possible action regarding the disposal of the District's outdated MRE's 11. Discussion and possible action regarding the notification of nominations for the Special District Risk Management Authority (SDRMA) Board of Directors elections for 2011 12. Review and approve the District's Flexible Spending Account Plan documents 13. Discussion and possible action regarding the District's billing provisions 14. Review and accept financial statements for the period ended December 31, 2010 15. Directors' fees and expenses for January 2011 REPORTS 16. Review and accept the Investment Report for the quarter ended December 31, 2010 17. General Manager / Staff Reports 18. Consultant Reports 19. Committee Reports • Legislative (Standing) • Community Affairs (Standing) • Policy Committee (Ad -Hoc) 20. Oral comments from Board of Directors 21. Letter to the District from the San Bernardino Valley Water Conservation District regarding the status report on Wash Plan Activities 22. Letter of appreciation to the District from CWO Daniel "Morgan" Dyer, USMC (Ret), regarding District employee 23. Water Education Foundation's "2011 Water Tours ", various dates and locations 24. ACWA's 2011 Washington, D.C. Conference, March 1 -3, 20' 1 2 25. Water Education Foundation's "Lower Colorado River Tour ", Las Vegas, March 16 -18, 2011 26. Special District and Local Government Institute "Advanced Studies, The Exceptional Agency ", Indian Wells, April 28 -29, 2011 CLOSED SESSION 27. CONFERENCE WITH LABOR NEGOTIATOR [Government Code Section 54957.6(a)] District Negotiator: To be determined Employee Organization: S.B.P.E.A. 28. CONFERENCE WITH REAL PROPERTY NEGOTIATOR [Government Code Section 54956.8] Property: 0297 -061- 22,0297 - 061 -23 Property with whom District will negotiate: City of Highland Party who will be negotiating on behalf of the District: Robert Martin Under Negotiation: Price and Terms of Payment ANNOUNCEMENT OF CLOSED SESSION ACTIONS ADJOURN ------------------------------------------------------------------------ Pursuant to Government Code Section 54954.2(a), any request for a disability- related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above - agendized public meeting should be directed to the District's Administrative Manager at (909) 885 -4900 at least 72 hours prior to said meeting. 3 Subject to approval EAST VALLEY WATER DISTRICT REGULAR BOARD MEETING MINUTES JANUARY 25, 2011 President Wilson called the meeting to order at 3:00 p.m. Mr. Sturdivan led the flag salute. PRESENT: Directors: Le Vesque, Malmberg, Morales, Sturgeon, Wilson ABSENT: Directors: None STAFF: Robert Martin, General Manager; Ron Buchwald, District Engineer; Brian Tompkins, Chief Financial Officer; Gary Sturdivan , Safety & Regulatory Affairs Director; Cecilia Contreras, Administrative Office Assistant II; Justine Hendricksen, Administrative Manager LEGAL COUNSEL: Steve Kennedy GUEST(s): Charles Roberts (Highland Community News), Cara Van Dijk (CV Strategies) APPROVAL OF AGENDA President Wilson requested that items #9 & #10 be deferred until the next board meeting. The General Manager requested that item 46 be removed from the agenda and be submitted to the board at a later date. M/S /C (Sturgeon - Malmberg) that the January 25, 2011 agenda be approved as amended. PUBLIC PARTICIPATION President Wilson declared the public participation section of the meeting open at 3:02 p.m. There being no written or verbal comments, the public participation section was closed. Minutes: 01/25/11 APPROVAL OF BOARD MEETING MINUTES FOR DECEMBER 28, 2010 M/S /C (Sturgeon - Malmberg) that the December 28.:'.010, Board meeting minutes be approved as submitted. APPROVAL OF BOARD MEETING MINUTES FOR JANUARY 11, 2011 M/S /C (Sturgeon - Malmberg) that the January 11. 201 1. Board meeting minutes be approved as submitted. DISBURSEMENTS M/S /C (Sturgeon - Malmberg) that General Fund Disbursements #227136 through #227302 distributed during the period of January 5, 2011 through January 12, 2011 in the amount of $1,143,094.82 and Payroll Fund Disbursements for t'ie period January 12, 2011 in the amount of $185,207.95 totaling $1,328,032.77 be apprc. °ed. DISCUSSION AND POSSIBLE ACTION REGARDING' THE DISTRICT'S DRUG FREE WORKPLACE POLICY Director Malmberg would like to know if the policy requires that the District meet and confer with the San Bernardino Public Employees Association ( SBPEA) prior to approving the document. Mr. Kennedy stated that the current Personnel Rules that were adopted in 2001 give the General Manager the authorization to implement and /or _mend the previous policy. However, the District should notify the SBPEA and provide a copy to the union regarding the newly adopted policy. M /S /C (Malmberg- Morales) that the Board appro, e the Drug Free Workplace Policy. DISCUSSION AND POSSIBLE ACTION REGARDING PUBLIC HEARING AND PROPOSED SEWER TREATMENT RATE INCREASE The General Manager stated that the City of San Bernardino Water Department has adopted their new wastewater treatment rates; that the rates go into effect February 1, 2011 and an additional increase takes affect January 1, 2012; that the District has prepared a draft 218 notice to comply Rith the increases; that the Citv has given the District some latitude in implementing the increase; the impact to the Disiri,,l is approximately $39K to $52K per month; that the City increased their rates due to capital and regulatory needs and requirements. Director Sturgeon is uncomfortable with having an additional increase so soon; that the City of San Bernardino is cutting their budget, furloughing employees and other items; that one option is to furlough District employees; however he might be agreeable to put 2 Minutes: 01/25/11 off the first rate increase until October but not to have an additional increase in January 2012; that he would also like the Board to consider getting rid of the $2 surcharge for customers east of Boulder and to spread that rate over the entire customer base; that he does not like the sewer charges separately on the bills. Vice President LeVesque is not comfortable with answers that Ms Aldstadt provided to the Board regarding the sewer rate increase; that there are other options and alternatives that the District needs to review before raising sewer rates; which includes the upcoming union negotiations where everything will be laid on the table. Director Malmberg stated that he agrees with the other Directors comments, however the District has a financial obligation and that the increases are necessary; he recommends that staff proceed with the Proposition 218 notice; and that he would also like to implement a level pay plan for our customers. Director Morales stated that the JPA committee is meeting and will be reviewing the agreement with the City of San Bernardino; that it looks as if there are two types of funds addressed in the agreement; that he needs more information and would like to review budgeting specifics; that he would support delaying the rate increase only temporarily. President Wilson stated that he understands that a rate increase is inevitable but is unsure how to proceed; that he would like more information on ways that the District can cut costs from the budget and that he is also concerned that the District could technically default on its bonds. The General Manager and Chief Financial officer will prepare a draft budget and bring it back to the Board to review. M/S (Sturgeon- LeVesque) that this item is deferred until a draft budget has been prepared by the General Manager and Chief Financial Officer. Directors Sturgeon and LeVesque amended their motions to include that the District will not proceed with a mid -year budget review at this time. M/S /C (Sturgeon - LeVesque) that this item is deferred until a draft budget has been prepared by the General Manager and Chief Financial Officer and the District will not proceed with a mid -year budget review at this time. A roll call vote was taken: President Wilson voted YES. Vice President LeVesque voted YES. Director Sturgeon voted YES. Director Malmberg voted NO. Director Morales voted YES. 3 Minutes: 01/25/11 GENERAL MANAGER /STAFF REPORTS The General Manager reported on the District's operations to date; that the Highland City Council is presenting certificates to agencies and/or companies who provided support during the recent flooding; that he recently attended CM(fk's Capitol Day and the trip was very successful. Mr. Tompkins reviewed the investment report with the Board and stated that this item will be on the next agenda. Director Morales asked Mr. Tompkins a number of questions regarding the report. Mr. Sturdivan provided an overview of the recent AR1, STORM Summit event he attended; that an ARkSTORM scenario is preliminarily scheduled for February 18, 2011; that there was also an article in the Sun Telegram regarding the ARkSTORM summit; that the District has received the funding agreement for Plant 150. Information only. CONSULTANT REPORTS Ms Van Dijk stated that CV Strategies is working and/or completed a number of projects including: 1. Communications strategic planning 2. Reviewing the draft proposition 218 notice 3. Press release relating to flood victims 4. Santa Ana Sucker Fish Task Force strategies COMMITTEE REPORTS a. Legislative (Standing) — Director Morales stated that the committee met on January 21 and discussed a number of items: 1. Proposed legislation, including a public goods charge (meter tax). 2. Strategies for CMUA's Capitol Day 3. The District's current legislative members and the committee that they are assigned to. Director Malmberg stated that many of the legislators were not aware of the problems that the District is facing regarding the Santa Ana Sucker Fish. Director Malmberg also stated that the District's state legislative lobbyist Mr. Reeb has an impeccable reputation in Sacramento. b. Community Affairs (Standing) — Director Sturgeon stated that the committee is reviewing the budget related to community affairs project , consultants etc. c. Policy Committee (Ad -Hoc) — Director Morales stated that the committee met on January 12`h regarding the Drug Free Workplace Police and also discussed the District's policy on background checks. 4 Minutes: 01/25/11 Information only. ORAL COMMENTS FROM BOARD OF DIRECTORS Director Sturgeon stated that he would like the District to consider a level pay plan for our constituents. Information only. ASSOCIATION OF THE SAN BERNARDINO COUNTY SPECIAL DISTRICT'S MEMBERSHIP MEETING HOSTED BY RBF CONSULTING, MARIE CALLENDERS, ONTARIO, JANUARY 24, 2011 WESTCAS 2011 WINTER CONFERENCE, WORTHINGTON RENAISSANCE HOTEL, TEXAS, FEBRUARY 23-25,2011 ADJOURN The meeting was adjourned at 4:47 p.m. Robert E. Martin, Secretary George E. Wilson, President 5 Minutes: 01/25/11 t4D East Valley Water District 3654 East Highland Avenue, Suite 18, Highland, CA 92346 Serving Our Community for Over 5CI Years P.O. Box 3427, San Bernardino, CA 92413 BOARD OF DIRECTORS Board Memorandum From: Brian W. Tompkins / Chief Financial Officer Subject : Disbursements. I Recommendation: Approve the attached list of accounts payable checks and payroll issued during the period January 13, 2011 through February 1, 2011. Background: George E. "Skip'• Wilson President Main Le Vesque Vlce President Date February 8, 2011KpDirecto eon James Mora yes, Jr Director Larry Malmberg Directo Robert E. Martin General Manager Brian W. Tompkins Chief Financia� Officer Ronald E. Buchwald District Eng near Accounts payable checks are shown on the attached listing and include numbers 227303 to 227448 for A total of $475,176.90. 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J J Env �� O-wo D-o �v�� a co � =, �W m— c O c D c ( c c c c c W c m z 2 H w O w F> J J J J > > n J 2, o K 05 cr m N O � V N N N 05 O E OO E O O N N N N Ul O c c c (n N �' f. p C Z o o °— o 0 0 0 0 0 X a a v n m m 0 o C LU W y —°BUJ OJ �_ >> > J >> >� d > o o O O o O O O O O_ O LO (p N N N N N N N N N N N N N ❑ O N O N O N O N N N N N O n n n n O (D O N YO YO YO Y00000 Y0000 YO YO Yc YO F-U> U> U> U > > > >> U>>>> U> U> U'> U> a Z O N M L o o O n n n m o 0 0 0 0 ^ n ^ m o No No o 0 0 0 (� U NO No 0 o O m rvo m nib N� Nm m t4D East Valley Water District 3654 East Highland Avenue, Suite 18, Highland, CA 92346 Serving Our Community for Over 6( Years P.O. Box 3427, San Bernardino, CA 92413 Board Memorandum From: Brian W. Tompkins / Chief Financial Officer Subject: General Manager's Expenses. Recommendation: Approve the attached list of payments and reimbursements for General Manager expenses during the period January 13, 2011 through February 1, 2011. Background: BOARD OF DIRECTORS George E. "Skip,- Wilson Date: February 8, 2011 Preside-it Matt Le Vesque Vice President Kip E. Sturgeon Director James Morales, Jr Director Larry Malmberg Director Robert E. Martin General Manager Brian W. Tompkins Chief Financial Officer Ronald E. Bu-hwald District Eng,neer Business and Travel expenses incurred by the General Manager and paid during the reporting period stipulated above totaled $1207.66. A summary of theses expenses by authorized payment methods follows: American Express — R Martin 1139.31 American Express — J Hendricksen CalCard — R Martin CalCard — J Hendricksen CalCard — E Bateman / C Contreras Direct Reimbursement 68.35 Total 1207.66 Administration (909) 885 -4900, 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) 888 -6741 RESOLUTION FOR A PLANNING FUNDING AGREEMENT J RESOLUTION NO. 2011.02 RESOLUTION OF East Valley Water District AUTHORIZING THE General Manager TO SIGN FUNDING AGREEMENT, CERTIFICATIONS, AND AMENDMENTS FOR FUNDING UNDER THE SAFE DRINKING WATER STATE REVOLVING FUND; AUTHORIZING THE General Manager TO APPROVE CLAIMS FOR REIMBURSEMENT; AUTHORIZING THE General Manager TO EXECUTE BUDGET AND EXPENDITURE SUMMARY; AUTHORIZING THE General Manager TO SIGN THE CONTRACTOR'S RELEASE FORM; AND DEDICATING REVENUES FROM Water Rates AS THE SOURCE OF REVENUE TO REPAY SAID LOAN. WHEREAS, on November 8, 2008 , East Valley Water District made application to the California Department of Public Health for a $ 500,000 funding under the Safe Drinking Water State Revolving Fund; and WHEREAS, on January 14, 2011, the California Department of Public Health issued a Notice of Application Acceptance to East Valley Water District committing $ 100,000 in Loan Funding and $ 400,000 in Grant Funding from the Safe Drinking Water State Revolving Fund for 3610064 -003; and WHEREAS, on December 20, 2010, East Valley Water District Board of Directors adopted a project budget totaling $ 1,126,756; and WHEREAS, on January 14, 2011, the California Department of Public Health committed funding in the amount of S 500,000 under the Safe Drinking Water State Revolving Fund program; and WHEREAS, the remaining $ 626,756 of.project costs are to be funded under the East Valley Water District Bond funding; and WHEREAS, the Funding Agreement under the Safe Drinking Water State Revolving Fund will provide for a live (5) year repayment period at a 0 percent interest rate. WHEREAS, prior to the California Department of Public Health issuing a Funding Agreement, East Valley Water District Board of Directors is required to pass a resolution formally establishing a dedicated source of revenue to repay the loan, authorizing an officer to execute the Funding Agreement, amendments, and certifications, designating a person to approve claims for reimbursement, and designating a person (registered engineer depending upon the work being done) to sign the Budget and Expenditure Summary. NOW, THEREFORE, BE IT RESOLVED AND ORDERED, that the General Manager is hereby authorized to incur Indebtedness pursuant to the funding agreement. (The term "Indebtedness" as used herein means all grants, debts, obligations and liabilities, currently existing or now or hereafter made, incurred or created in connection with the Loan Funding and Grant Funding, and sign the Safe Drinking Water State Revolving Fund program funding agreement and any amendments thereto; and BE IT FURTHER RESOLVED AND ORDERED, that the General Manager is hereby authorized to approve Claims for Reimbursement under the Safe Drinking Water State Revolving Fund program; and BE IT FURTHER RESOLVED AND ORDERED, that the General Manager is hereby authorized to exeeate the Budget and Expenditure Summary for the Safe Drinking Water State Revolving Fund program; and BE IT FURTHER RESOLVED AND ORDERED, that the General Manager is hereby authorized to sign the Contractor's Release Form for the Safe Drinking Water State Revolving Fund Program; and Rev. 12/16/10 Page I oft BE IT FURTHER RESOLVED AND ORDERED, that the East valley Water District does hereby designate revenues from its Net Revenues of the Water Operating Fund as the clecicated source of revenue to repay this Safe Drinking Water State Revolving Fund loan and Net Revenues of the Water Operatinta Fund as the pledged collateral and dedicated source of revenue to repay this Safe Drinking Water State Revolving; I L td loan.. This dedication shall remain in full force and effect until such loan is fully discharged, unless modification of c Mange of such dedication is approved in writing by the California Department off) blic Health. If for any reason, the scu-cc of revenues proves insufficient to satisfy the debt service of the Safe Drinking Water State Revolving Fund loan, sufftcier, funds shall be raised through increased water rates, user charges, or assessments or any other legal means available to meet this loan obligation and to operate and maintain this project. BE IT FURTHER RESOLVED AND ORDERED, the authority granted hereunder shall be deemed retroactive. All acts authorized hereunder and performed prior to the date of this Resc wio t are hereby ratified and affirmed. The California Department of Public Health s authorized to rely upon this Re,o et on until written notice to the contrary, executed by each of the undersigned, is received by the California Departmen. of =ublic Health. The California Department of Public Health shall be entitled to act in reliance upon the matters contain ,!d herein, notwithstanding anything to the contrary contained in the formation documents of the East Valley Water District o: in any other document. ......................................... ............................... 0....... 0. a. Passed and adopted by the East Valley Water District Board of Directors on ; ebr.tary 8, 2011 by the following vote: AYES: Directors NOES: Directors EXCUSED: Directors President ATTEST: Robert E. Martin . Secretary of the East Valley Water District Board of Directors in Deputy Clerk Rev, 12/16/2010 Page 2 of 2 RESOLUTION NO. 2011.01 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 th7s 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 l;mited 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 l:istrict compensation under the ordinance referenced in Section 1.1 of this Resolution shall include social gatherings, picnics, awards 2 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 Tuesday 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. 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 3 amount incurred. 2.3.2. Transportation. (a) Members of the Board must use goy ernment and group rates offered by a provider of transportation services for travel when available. 1 f such rates are not available, the District reimbursement rate for Board member transportation shall b,- t:ne 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 mi les driven for District purposes at the rate specified in the Internal Revenue Code in effect at the time c f the vehicle usage. (c) The District reimbursement rate ('cr vehicle parking by a Board member shall be the actual amount incurred. 2.3.3. Loclaine. 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 rot 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 tactual amount incurred, not to exceed the rate for comparable lodging. 2.3.4. Meals. The District reimbursement rate for'3oard 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 otFer actual and necessary expenses incurred by a Board member shal' be computed using the applicahle Internal Revenue Service rates 4 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. Inelieible 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 repots 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 Effective Date. Each local agency official in District service as of the effective date of this Resolution must receive training in eth i c ; laws at least once every two years. 3.1.2. Service On Or After Effective Date. Each local agency official who commences service with the District on or after the effective date of this Resolution must receive training in ethics laws no later than six months 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.'. 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) La"s 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 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 G 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 Effective Date. Each Board member in District service as of the effective date of this Resolution 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 at least once every two years. 4.1.2. Service On Or After Effective Date. Each Board member who commences 7 service with the District on or after the effective date of this Resolution must participate in the District's program ofproviding at least two hours of classroom or ot:ner 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 Bo arc member must participate in such training at least once every tyro 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 ecrrection 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 53200-5321 0, 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 deper lent 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, "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 benefit. (luring the period of time that such Board members are serving in office as Board members of the District. Effective January 1, r 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 0 be established by the Board, shall make health and welfare benefis available to its former Board members who do not meet the requirements of subsections (a) or (h) 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 hasis, and who satisfy any and all additional eligibility requirements imposed by PERS. The electior: 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. At times deemed appropriate by the Board, 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. 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. 2009.22 adopted by the Board or. November 24, 2009. 10 Adopted this 25`" day of January, 2011. AYES: NOES: ABSTAIN: ABSENT: ATTEST: Secretary, Board of Directors 11 President, Board of Directors RESOLUTION NO. 2071. 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 Deleted: Q9 . _ _.. Deleted: z2 r� 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 waterdistrict 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 ofthis 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. 1.1 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 ofa Board member, in person or bN- telerhone, at an eligible meeting with one or more other pan ies for the performance of official dutie s opt behalf ofthe District. An "eligible meeting" as used herein includes, but is not limited to, the fol,,ov ing: (a) Any occurrence that is listed in Government CodeSecti(a 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 Manage, involving the operations of the District; (e) A meeting of organizations with interests in matters im olving the functions and operations of the District; (f) A conference, seminar, or organized educational artiJt, involving matters related to the functions and operations of the District; and (g) All other occurrences forwhich 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 compensnon under the . Deleted: District- sponsored ordinance referenced in Section 1.1 ofthis Resolution shall include social gatherings, picnics, awards 2 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 Deleted: Thursdey request for the calendar month by noon Tu, esdav 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. 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 3 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 no: 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 cosy of round -trip coach airfare). (b) The District reimbursement rate for mileage by use, cf 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 parkins by a Board member shall be the actual amount incurred. 2.3.3. Lod in . 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 incurred by a Board member shall be computed using the applicable Internal Revenus Service rates 4 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. Inelieible 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. Resort. Board members sl-all 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 ToBffective Date. Each local agency official n Dis*.rict service . as of effective date ofthis Resolution must receive training in ethics lawsAi least once every two, - years. 3.1.2. Service On Or After Effective Date. Each local ager,c� official who commences service with the District on or after,ihe effective date of this Resolution must receive training in ethics laws no later than IS'x memths 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 phase "ethics laws" includes, but is not limited to, the following: (a) Laws relating to personal financial gain bypublic se-vants, including, but not limited to, laws prohibiting bribery and conflict -of- interest laws; (b) Laws relatine to claiming perquisites 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 resarictions, and 6 LDeleted: LW6 Deleted: January 1, 2006, except for board members whose term of omce ends before January 1, 2007, Deleted: before January 1, 2007. Thereafier, each local agency officYel must receive such training Deleted: 2006 Deleted: January 1, 2006, Deleted: one year 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. Deleted: �sna —� 4.1.1. Service Prior To-Effective Date. Each Board member in District service as of " - Deleted: January ]. 2008 _� jhe effective date of this Resolution must participate in the District's program of providing at least two hours of classroom or other effective interactive training and education regarding sexual _ DNetM� . m Isar tben six months from harassment to its supervisory employees at least once every two years. the enemw date or this Resolution. ." Thereafter, each Board me,,ber must participate m such training 4.1.2. Service On Or Afterj;ffective Date. Each Board member who commences Deleted: zme 7 Deleted: January t, 2008, service with the District on or after jhe effective date of this Resolution must participate in the District's program of providing at least two hours ofclassroom or other effective interactivetraining and education regarding sexual harassment to its supervisory employees no later :ian six months from the first day of service with the District. Thereafter, each Board member mcst participate in such training at least once every two years. 4.2. District Responsibilities. Tie 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 st xcal harassment and the remedies available to victims of sexual harassment in employment. Tie training and education shall also include practical examples aimed at instructing District supe-visors 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 : 1008 and the applicable provisions of California Government Code Section 53200 - 53210, the District, subjectto such terms and conditions as maybe established by the Board, shall make health and's eIf'are benefits available to its active Board members and their spouses and dependent children uncle' the age of 21, dependent children under the age of 25 who are full -time students at a college or t.niversity, 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. Effecrive January 1, 8 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) Pursuamto the requirements ofCalifomiaGovemment 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 �omner Board members who do not meet the requirements cf 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 - paybasis, and who satisfy any and all additional eligibility requirements imposed by PERS. The election requirements Lo- 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 forthe continuation ofberefits under the Consolidated Omnibus Budget Reconciliation Act of 1985. Deleted: ON ANNUAL BASIS Section 6. REVIEW OF RESOLUTION. rot times deemed appropriate by the Board, the Board shall review this Resolution to determine its effectiveness and the necessit} 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 ccnceming this Resolution. ....... ............................... 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 withoutthe invalid provision or application, and to this end the provisions of this Resolution are declared to be severable. Section 8. EFFECTIVE DATE. Deleted: Each Itm Deleted: Nothing herein shall preclude the Board from taking action on the Resolution at times other than upon conclusion of the annual renew. The provisions ofthis Resolution shall become effective upon adoption and shall supersede MDeleted: I the provisions of Resolution No. 200Q adopted by the Board on November 24. 200E. 19 _ _ _ E Adopted this _ day of_ 2( 1 1. AYES: NOES: ABSTAIN: ABSENT: President, Board of Directors ATTEST: Secretary, Board of Directors Deleted N : Deleted: ovembtt Deleted:09 — ORDINANCE NO. 378 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING GUIDELINES FOR THE CONDUCT OF ITS PUBLIC MEETINGS AND ACTIVITIES WHEREAS, the Board of Directors of the East Valley Water District finds as follows: A. The East Valley Water District ( "the District ") is a county water district organized and operating pursuant to California Water Code Section 30000 et seq. B. The District is governed by an elected Board of Directors ( "the Board ") whose meetings are subject to the requirements of the Ralph M. Brown Act, California Government Code Section 54950 et seq. ( "the Brown Act "). C. The Board is authorized by Government Code Section 54953.7 to impose requirements upon itself which allow greater access to its meetings than prescribed by the Brown Act. D. The purpose of this ordinance is to ensure that the Board's deliberations are open to the public to the fullest extent permitted by law and its activities are performed in a manner that reflect a dedication to the highest standards of integrity and accountability so as to continue to earn the trust and confidence of the public served by the District. THEREFORE, THE BOARD OF DIRECTORS of the East Valley Water District does hereby adopt and ordain as follows: Section 1. PUBLIC ACTIVITIES. To the extent not otherwise inconsistent with applicable law or any existing or future ordinances, resolutions, rules, regulations, or particular practices of the District, the Board hereby adopts as a matter of general policy the Board Norms and Procedures attached hereto as Exhibit "A" 1 and incorporated herein by this reference. Section 2. PUBLIC MEETINGS. 2.1. Statutory Requirements. All meetings of the Board and all committees thereof shall be conducted in compliance with all applicable requirements of the Brown Act. 2.2. Additional Requirements. 2.2.1. Regular Meetings. Pursuant to Government Code Section 54954(a), all regular meetings of the Board shall be held at 3:00 p.m. on the second and fourth Tuesdays of each month at the District offices located at 3654 East Highland Avenue. Suite # 12, Highland, California. 2.2.2. Special Meetin s. Special meetings of the Board shall be called and conducted in accordance with Government Code Section 54956. The Board shall not add any non- agendized item to the agenda of a special meeting. Further, no agenda for a special meeting shall provide an opportunity for the Board to consider the possible addit ion of any non - agendized item to the agenda. 2.2.3. A¢endas. The agendas of all Board meetings and all committee meetings that are open to the public shall be posted in the following locations: (1) an exterior bulletin board located outside the District headquarters which is accessible twenty -four (24) hours a day; (2) on -line at the District's website known as "eastvalley.org "; and (3) an interior bulletin board located in the lobby of the District headquarters. Section 3. REVIEW OF ORDINANCE. At times deemed appropriate by the Board, the Board shall review this ordinance to determine its effectiveness and the necessity for its continued operation. The District's General Manager shall report to the Board on the operation of this ordinance, and make any recommendations deemed appropriate, including proposals tc amend the ordinance. Upon 2 conclusion of its review, the Board may take any action it deems appropriate concerning this ordinance. Section 4. SEVERABILITY. If any provision of this ordinance, or the application thereof to any person or circumstances, is held invalid, such invalidity shall not affect other provisions or applications of this ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are declared to be severable. Section 5. EFFECTIVE DATE. The provisions of this ordinance shall supersede Ordinance No. 374 adopted by the Board on December 22, 2008, and shall take effect immediately upon adoption. Adopted this 250' day of January, 2011. ROLL CALL Ayes: Noes: Abstain: Absent: ATTEST: Robert E. Martin Secretary, Board of Directors tj George E. Wilson President, Board of Directors Exhibit "A' BOARD NORMS AND PROCEDURES GENERAI. 1. To take courageous action when necessary to keep the EVWD a progressive, well managed, innovative District. 2. Board of Directors provides leadership and participates in regional, state and national programs and meetings. 3. Board of Directors looks to Constituents and other elected officials for independent advice. 4. Other community leaders are consulted in the decision- making process when appropriate. 5. There can be extensive citizen participation and work on District programs. 6. There are numerous meetings, other than regular Board of Directors meetings. 7. We stress training for staff and Board of Directors. 8. Board of Directors will inform the General Manager's Administrative Manager when they will be out of town as early as possible. 9. Board of Directors get the same information as much as possible: citizen complaints, letters, background, etc., in a timely manner. io. Board of Directors members will each determine specific routine information they want to receive such as Committee or City Agendas. 11. Return unwanted reports and documents to staff for distributing to the public or for recycling. 12. The Board of Directors may ask General Manager or designee for information, providing such information requests can be reasonably accommodated without significant interruption in staff work load. The General Manager shall not be required to copy all Board Members with information obtained by other Board Members. EVWD — Board of Directors Norms and Procedures 13. All project assignments requested by Board Members shall be directed through the General Manager. The General Manager may place project items on the agenda if the project requires Board policy direction ar ipproval to be implemented. 14.Items of significant expenditure of time /energy or financial impact must go to Board of Directors /General Manager to be agendized. 15. The General Manager receives formal work direction from the Board of Directors at public meetings or in closed session. Individual 13 and Members may not delegate formal work direction to the General Manager without approval by the rest of the Board of Directors. 16.The General Manager or Board President can request an item be placed on the agenda. 17. Read Committee Minutes in order to find out what is being worked on. 18.General Manager will discuss significant future Agenda topics with Board Members. 19.General Manager will meet regularly with Board President on Agenda preparation. 20. Board of Directors (minority side on vote) can not bring item back for one year; majority can bring it back at gill. 21. Board Members will do their homework (i.e., Read packets, complete committee work, etc.). 22.General Manager to give routine updates to Board of Directors. BOARD OF DIRECTORS' VALUES 23.The Board of Directors and General Manager are a participatory team. 24. Board of Directors values high energy, open mindedness, and is achievement - oriented. 25. Board of Directors will care and have respect for each other. 26. Board of Directors will be straightforward, with no hidden agendas. 27.District Board of Directors values humor. 28.Traditions are respected. 29.No member of the Board of Directors shall use his or her position of public service with the District as a means to benefit his or her personal or private interests. 2of8 EVWD - Board of Directors Norms and Procedures BOARD OF DIRECTORS INTERACTION AND COMMUNICATION 30.Individuals are responsible to initiate resolution of problems A.S.A.P. and not let them fester. 3i. Board of Directors will not direct personal attacks at each other during public meetings, in the press, or any other place /time. 32. Relationships are informal, but not casual in public. Business attire at Board meetings is appropriate. 33. Board of Directors will be cooperative in covering for each other. 34• Substantive Board of Directors /General Manager items are to receive advance notice and public notification. 35 -Committee areas belong to the whole Board; they are not seen as territorial. 36. Committees are responsible to keep the rest of the Board Members informed; and other members are responsible for letting the Committee know if they want more information or to give input. 37. Before Elected officials start moving in a new direction, they will get direction from the rest of the Board Members. 38.The Board President forms Committees or disbands and is responsible for selection. 39. Committee reports will be made under Board Reports, when appropriate. 40. Committee summaries will be sent on an interim basis to update other Board members on: o Issues being discussed o Options being considered o Progress 41. Board of Directors and Committees will give clear and focused communication promptly. 42. If Committee and Staff disagree, it is the practice to bring the issue to full Board of Directors. BOARD INTERACTION AND COMMUNICATION WITH STAFF General Manager 43. Board of Directors will provide annual goals to provide direction to the General Manager at the time of the annual evaluation. 44. Board Members should always feel free to go to the General Manager and vice versa. 7 _C. EVWD — Soord of Directors Norms and Procedures 45•When a Board Member is unhappy about a department or issues, he /she should always talk it over with the General Manager not the Department Head or other Board members. 46.Concerns about a Department Head must be taken to the General Manager or Board Attorney only. 47.Critical information will be passed to all Board Mem hers by appropriate personnel. 48.The General Manager will provide ongoing feedback. information, and perceptions to the Board of Directors, including some response to written communications requesting feedback. 49•The General Manager deals with issues that cross department boundaries. 50.Board of Directors will provide the General Manager ,%ith a written evaluation annually and provide some General Manager goals. Staff in General 51. Board of Directors will always be informed by staff when an unusual event occurs that the public would be concerned about, i.e., Health Department notice, big Water breaks, etc. in a timely manner (if press or media is involved). 52. Extreme emergencies (i.e., fatalities) are immediately communicated to Board Members by General Manager or staff. 53•The Board of Directors and staff will not blind side eael• other in public. Consideration for each other is our practice. 54• If a Board Member has a question on an agenda item, that member will make every effort to contact the General Manager or designee prior to the meeting. Board Attorney 55•Board Attorney shall partner with Board of Directors. General Manager and Staff when and where appropriate. 56.Board Attorney goes through the General Manager on routine areas. 57.Board Attorney to regularly consult with Board Members on items of concern on the upcoming agenda at the earliest time possible. 58. Board Attorney can consult directly with General Manager as needed. 59. Board Attorney will track Committee's actions, and relevant agendas of Board of Directors for needed input. 6o. Board Attorney must oversee specialist attorneys; they are paid through the General Manager. 4of8 EVWD — Boord of Directors Norms and Procedures 61. Board Attorney to pro - actively inform and protect the Board of Directors from potential violations and conflicts. CHAIR SELECTION 62. The Board President's succession is governed by the Board practices. 63. The Board President is selected by the Board of Directors. The Board President remains as one member of the Board and has no rights or authority different from any member of the Board. 64.In the event of an early vacancy in the position of Board President, the Vice President shall become Board President for the remaining portion of the outgoing Board President's term as Board President. CHAIR'S ROLE 65. Each Board President is unique; the role is defined by the person, based on that person's style. 66.The Board President acts as the ceremonial head or representative of the District at various civic affairs. 67.The Board President is the spokesperson for the Board of Directors when appropriate media or external organization requests are made. 68.The Board President acts as signatory to all documents requiring Board's execution. 69.The Board President makes appointments to Ad Hoc and special advisory Committees. 70.The Board President makes declarations, extends official recognition of groups or events. 71. The Board President will inform the Board of any informal correspondence sent out to anyone in relation to District business. 72. The Board President regularly communicates with the General Manager. CITIZEN COMPLAINTS 73. Board of Directors will be informed of significant, urgent and repetitive complaints. 74.Staff will draft responses (letters). 75.Board of Directors shall not attempt to fix Citizens' problems on their own; it will be referred to the General Manager. 76.Responses to Citizens are customized. c _! U EVWD— Board of Directors Norms and Procedures 77. Copies of responses to be included in individual packets or in Board Member's mail box. 78.If a Board Member wants action based on citizen complaint, they should go through the General Manager's office. 79.The level of detail in written responses A] be selective. 80.Generally, communications are acknowledged with discretion. PUBLIC MEETINGS 81.General Manager sets the Agenda for regular Board of Directors meetings. 82.Public comment shall be received on all action items. 83.Board of Directors members will treat everyone with courtesy. 84-Corrections to minutes are passed to the Board Secretary as soon as possible. 85. Each member may share his /her views about the issue and the reasons for his /her vote. Consent Calendar 86.There is judicious use of the Consent Calendar, such as minutes, routine District business, some appeals, things already approved in the budget. 87. If a Board Member has a question on a Consent Calendar item for their information only, they are to ask staff ahead of time, rather than having it pulled off for discussion during the meeting. 88.Staff is prepared to report on every agenda item. Public Input on Individual Agenda Items 89. once public input is closed, further public input A] not be allowed unless re- opened by Board President. 9o.Citizen's, Board President's and invited guests' comments will be limited to a reasonable time. 9i.Board President will allow other Board Members to speak first and then give his /her views and summarizes. Public Comment Section of the Agenda 92.Public comments shall be limited to 3 minutes per speaker. 93•Each speaker will be thanked. 6of8 EVWD — Board of Directors Norms and Procedures 94. Generally, Board Members will not respond to Public Comments except for the Board President referring matters to the General Manager for follow up. Occasionally, a quick informational response is appropriate when an obvious answer is available. The Board of Directors will not debate or make decisions in response to public comments as they are not agenda matters under consideration. Votin 95•Everyone may speak before a motion. 96.Attempts will be made to get consensus on significant policy issues. 97.There will be roll call votes on request when a divided Board is obvious. 98. Department heads will generally attend when asked by the General Manager. 99. Board of Directors member discussions will not be redundant if they concur with what has already been said. Closed Session ioo.Closed Session materials and conversations are confidential; Board Members may retain Closed Session paper documents for analysis; documents must be destroyed when no longer needed /used. Board Members will get written reports for Closed Session items as much as possible; these reports are to be turned in at the end of the meeting. io1.General Manager may ask for Closed Sessions to be held at the convenience of the Board. 102.No violation of Closed Session confidentiality; Board Members will not talk to affected / opposing parties or anyone else (press, etc.) per the Brown Act at specific Closed Session meetings. 103. Confidentiality relates to any non - public discussion items. Special Meetings 104.Special meetings may be called by Board President pursuant to the Brown Act. COMMITTEES AND BOARDS 105. Problem solving issues with Committees will be done as much as possible with Chairs. io6.All Committees of Board of Directors should know Board's needs: .To know Board's vision /mission. *Encouraged to participate in Board - sponsored events. *Understanding of their roles /authority / "no- no's." I -4C 4 EVWD— Board of Directors Norms and Procedures •To know annual priorities /goals. •Process /parameters within which to work. i.e., citizen involvement. *Board of Directors reserves the right to make its own decisions. 107.Board President and Vice President are encouraged to receive annual support training. 108.All Board Members Aill receive annual training. These Board Dorms will be reviewed on an annual basis. Approved: July 27, 2010 Approved July 27th, 2010 8of8 ORDINANCE NO. AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ESTABLISHING GUIDELINES FOR THE CONDUCT OF ITS PUBLIC MEETINGS AND ACTIVITIES WHEREAS, the Board of Directors of the East Valley Water District finds as follows: A. The East Valley Water District ( "the District ") is a county water district organized and operating pursuant to California Water Code Section 30000 et seq. B. The District is governed by an elected Board of Directors ( "the Board ") whose meetings are subject to the requirements of the Ralph M. Brown Act, California Government Code Section 54950 et seq. ( "the Brown Act "). C. The Board is authorized by Government Code Section 54953.7 to impose requirements upon itself which allow greater access to its meetings than prescribed by the Brown Act. D. The purpose of this ordinance is to ensure that the Board's deliberations are open to the public to the fullest extent permitted by law and its activities are performed in a manner that reflect a dedication to the highest standards of integrity and accountability so as to continue to earn the trust and confidence of the public served by the District. THEREFORE, THE BOARD OF DIRECTORS of the East Valley Water District does hereby adopt and ordain as follows: Section 1. PUBLIC ACTIVITIES. To the extent not otherwise inconsistent with applicable law or any existing or future ordinances, resolutions, rules, regulations, or particular practices of the District, the Board hereby adopts as a matter of general policy the,__ attached hereto as Exhibit "A" and Deleted 224 DeleteA: Gadehnerf �fnnd•¢r incorporated herein by this reference. Section 2. PUBLIC MEETINGS. 2.1. Statutory Rea uirements. All meetings of the Board and all committee; thereof shall be conducted in compliance with all applicable requirements of the Brown Act. 2.2, Additional Requirements. 2.2.1. Repular Meetings. Pursuant to Government Code Section 54954(a), all regular meetings of the Board shall be held at 3:00 p.m. on the second and fourth I uesdays of each month at the District offices located at 3654 East Highland Avenue, Suite 412, High land. California. 2.2.2. Special Meetings. Special meetings of the Board shall be called and conducted in accordance with Government Code Section 54956. The Board shall noT acd any non - agendized item to the agenda of a special meeting. Further, no agenda for a special meeting shall provide an opportunity for the Board to consider the possible addition of any non- agetdized item to the agenda. 2.2.3. Aeendas. The agendas of all Board meetings and all committee meetings that are open to the public shall be posted in the following locations: (1) an exterior oulletin board located outside the District headquarters which is accessible twenty -four (24) hours a day; (2) on -line at the District's website known as "eastvalley.org' ; and (3) an interior bulletin board located in the lobby of the District headquarters. Section 3. REVIEW OF ORDINANCE Deleted: ON ANNUAL k Is Deleted: Each year I ,At times deemed appropriate by the Board the Board shall revie" this ordinance to determine its effectiveness and the necessity for its continued operation. The District's General Manager shall report to the Board on the operation of this ordinance, and make any recommendations deemed appropriate, including proposals to amend the ordinarce. Upon E conclusion of its review, the Board may take any action it deems appropriate conceming this _ Dele[!d: Nothing herein shall yreclude =d ordinances the from _king action on he _ ordinance m times other then upon conclmim oft"' aomml re ic" Section 4. SEVERABILITY. If any provision of this ordinance, or the application thereof to any person or circumstances, is held invalid, such invalidity shall not affect other provisions or applications of this ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are declared to be severable. Section 5. EFFECTIVE DATE. ONeted:2 _� The provisions of this ordinance shall supersede Ordinance No. 374 adopted bythe Board on .. Deleted: tune to December 22, 2008, and shall take effect immediately upon adoption. Deleted: 22'" Adopted this day of- 2..1(!�l . _ _ _ _ _ _. _ _ _ _ .:: Deleted: December Deleted: 08 ROLL CALL Ayes: Noes: Abstain: Absent: ATTEST: Robert E. Martin Secretary, Board of Directors 3 Geode E. Wilson President, Board of Directors Deleted: Donald D. Go"m DhstValley Water District Board Memorandum No. B -05 -2011 Date: FebruaTy 8, 2011 From: Gary Sturdivan, Safety & Regulatory Affairs Director Subject: Disposal of the outdated MRE's (Meals Ready to Eat) Recommendation : Authorize staff to dispose of the outdated MRE's Background: EV WD has approximately 70 cases of Meals Ready to Eat ( MRE's). These MRE's were purchased for emergency supplies in 2005. The MRE warranty is on a sliding scale per the storage temperature (this scale is attached). The District store's the MRE's at 60 degrees in a room at the District Yard. However, most District employees store their MBE's in their garage or in a non - controlled environment. Therefore, the shelf life of our MRE's has expired. In doing research on our MRE's and calling the manufacture, I was informed that the MRE's do have an expiration date code on them. The expiration date is listed as 5010 which translates to the 5 t month of 2010. The District has ordered freeze dried meals which should be delivered to the District by the middle of February. All employee emergency kits are being recalled to replace the MRE's. It is my recommendation that the Board of Directors authorize staff to dispose of the outdated MRE's. aPack Ready Meals - Self - Heating Emergency Meals The chart below indicates the shelf life of AmeriQual's C -MRE APack Ready Meals. Information is based on NATICK's study and evaluation of the n-iiitary's Meals Ready to Eat (MIRE), which employ=_ Identical packaging and production technologies as our C- MIRE, APack Ready Meals. 140....._ LL 120 b 100 s 60 7 6o 6 40 E r° 20 0 1 2 6 18 36 40 4B 60 Shell Lille (months) No product guarantee or warranty is implied by the table above, nor snould it b, m� =rpreted as such. It is Intended for educational use o °ly. Close Window Page I of 1 http:// www. readymea l.com /shelflifechart.html 1/20/2011 Special Distract Risk 1112 1 Street, Suite 300 Management Ant ionly Sacramento, California 95814.2865 T 916.231 4141 Maximimng Protection F 916 231 4111 M,n,mll Risk Toll free 800 537 7790 ww sdrma.org Notification of Nominations — 2011 Election SDRMA Board of Directors January 19, 2011 Mr. George "Skip" Wilson Board President East Valley Water District Post Office Box 3427 San Bernardino, California 92413 -3427 Dear Mr. Wilson: SDR&AA Notice of Nominations for the Special District Risk Management Authority (SDRMA) Board of Directors 2011 Election is being provided in accordance with the SDRMA Sixth Amended and Restated Joint Powers Agreement. The following nomination information is enclosed: Nomination Packet Checklist, Board of Director Fact Sheet, Nomination /Election Schedule, SDRMA Election Policy No. 2011 -02, Candidate Nomination Resolution and Candidate Statement of Qualifications. Genera/ Election Information - Three (3) Directors seats are up for election. The nomination filing deadline is Wednesday, May 4, 2011. Ballots will be mailed to all SDRMA member agencies in mid -May. Mail -in ballots will be due September 16, 2011. Nominee Qua lifications- Nominees must be a board member or full -time management employee (see SDRMA Election Policy 2011 -02, Section 4.1) and be an active member agency of either SDRMA's property /liability or workers' compensation programs. Candidates must be nominated by resolution of their member agency's governing body and complete and submit a "Statement of Qualifications ". Nomination Documents and Information - Nomination documents (Nominating Resolution and Candidates Statement of Qualifications) and nomination guideline information may also be obtained on SDRMA's website at www.sdrma.org. To obtain documents electronically: From the SDRMA homepage, click on the '2011 Nomination & Election tnformahon" button. All necessary nomination documents and election information may be downloaded and printed. Term of Office - Directors are elected to 4 -year terms. The term of office for the newly elected Directors will begin January 1, 2012 and expire December 31, 2015. Nomination Fi /ing Deadline- Nomination documents must be received in SDRMA's office no later than 5:00 P.M. on Wednesday, May 4, 2011. Please do not hesitate to contact me at 800.537.7790, if you have any questions regarding the 2011 SDRMA Board of Director Nominations or the election process. Sincerely, Special District Risk Management Authority regor Chief Executive Officer a p ouo Caufornr Sr i Districts California Special Districts Association GSDA Finance Corporation ri,ance partner 11121 Street, Suite 200 11121 Street, Suite 200 Sacramerno, Carlomia 95814.2865 Sacramento. California 958142865 lou -free 877 924 GSDA (2732) toil free 877 924 GSDA (2732) Fax 916 442 7889 Fa. 916 442 7889 2011 Nomination Packet Checklist SDRMA BOARD OF DIRECTORS NOMINATION AND ELECTION GUIDELINES SDRMA January 5, 2011, marked the official commencement of nominations for the SDRMA Board of Directors. Three seats on the Board of Directors are up for election in September 2011. For your convenience we have enclosed the necessary nomination documents and election process schedule. Please note that some items have important deadlines. All document contained in this packet, as wells as additional information regarding SDRMA Board elections are available on o.0 website www.sdrma.org and /or by calling SDRMA Chief Executive Officer Greg Hall at 800.537.7790. Attachment One: SDRMA Board of Directors Fact Sheet: SDRMA Board of Directors has established a policy that requires candidates seeking election to the SDRMA Board of Directors to be: 1) a Board member or full -time management empt:tyee (per SDRMA Election Policy 2011 -02, Section 4.1) of their respective member agency, and 2) nominated by resolution of the Board of Directors of their respective member agency. This document also reviews the Board of Directors' Role and Responsibilities alr)ng with additional information. Attachment Two: SDRMA Board of Directors 2011 Election Schedule: Please review this document for important deadlines. Attachment Three: SDRMA Election Policy No. 2011 -02: A Policy of the Board of Directors of the Special District Risk Management Authority establishing guidelines for Director elections. Attachment Four: Resolution for Candidate Nomination: A resolution of the Governing Body of the Agency nominating a candidate for the Special District Risk Management Authority Board of Directors Attachment Five: Candidate Statement of Qualifications: Please be advised that no statements are endorsed by SDRMA. Candidate statements of qualification will be distributed to the membership with the SDRMA election ballot, "exactly as submitted" by the candidate. Please complete and return all required nomination and election documents to: SDRMA Election Committee C/O Paul Frydendal, CFO Special District Risk Management Authority 1112'9" Street, Suite 300 Sacramento, California 95814 800.537.7790 Special District Risk Management Aothonty I A Property, Liability, Workers Compensat" aro Health Benefits Program Attachment One SDRMA BOARD OF DIRECTORS FACT SHEET A NO SDRMA_ Special District Risk Management Authority . A Property, Liability, Workers' Compensation and Health Benefits Program Fact Sheet SDRMA SDRMA BOARD OF DIRECTORS ROLE AND RESPONSIBILITIES Special District Risk Management Authority (SDRMA) is a public entity Joint Powers Authority established to provide cost - effective property, liability and worker's compensation coverages and comprehensive risk management programs for special districts and other public agencies and providers of r Lli copal services throughout California. SDRMA is governed by a Board of Directors elected from the membership by the programs' members. Number of Board Members 7 -Board Members: SDRMA Board of Directors consists of seven (7) Board Members, who are elected at -large from memoers participating in either program. Board of Directors' Role SDRMA Board of Directors provide effective governance by supporting a unified vision, and ensuring accountability, setting direction based on SDRMA's mission ano purpose, as well as establishing anc approving policy to ensure SDRMA meets its obligations and commitment to Its members. Board of Directors' Board Member responsibilities include a - ornmitment to: serve as a part of a Responsibilities unified governance body; govern within Board of Directors' policies, standards and ethics, commit the time and energy to be effective; represent and make policy decisions for the benefit, and in the best interest, of all SDRMA members; support collective decisions; communicate as a cohesive Board of Directors with a common vision and vin ce and operate with the highest standards of integrity and trust. Three (3) Seats 3- Seats: Elections for Directors are staggered and held every two years, four For this Election seats during one election and three seats in the following election. Three seals are up for election this year. Term of Directors 4 -Year Terms: Directors are elected for 4 -year terms. Terms for directors elected this election begin January 1, 2012 and erc on December 31, 2015. Board Member Travel Board Members are reimbursed for reasonab a travel and lodging in accordance Reimbursement with SDRMA Board Policy Manual 2006 -04 and applicable laws. Number of Meetings per Year 12 -Board Meetings Annually: Generally not more than one (1) meeting per month, with an average of nine (9) meetings per year. Meeting Location SDRMA office in Sacramento, California. Meeting Dates Typically the first Wednesday of each month (overnight stay recommended the night prior to the meeting). Meeting Starting Time 8:30 a.m.: Meetings begin promptly. Meeting Length 6 - 8 hours: Length of meetings on average Average Time Commitment 15 - 20 hours Commitment per month "The mission of Special District Risk Management Authority is to provide renewable, efficiently priced risk financing and risk management services through a financially sound pool to CSDA member districts, delivered in a timely, cost efficient manner, respons;va to the needs of the districts." Special District Risk Management Authority j A Property, Liability, Workers Com per sa,c n and Health Benefits Program Attachment Two SDRMA BOARD OF DIRECTORS 2011 ELECTION SCHEDULE A 5E)RM)k Special District Risk Management Authority I A Property. Liability, Workers' Compensation and Health Benefits Program p cn �I D Cl) C- 0 4� V/ W O N 3 0 � o r �r ` N F d O O r N M O N N � O d (n N 2 R N 7 9 Lu Y Q cc ry W .o i- o 2 9 �° m O Tj o C � Z [b O d J 9 d 0 N c O Z C = N E 0 O N r m 9 07 Z = � a o C N ❑ d O m ry d' E U O u m W O 9 O 10 h ry C m n o n m j d d ;� m v ❑ (O L 6 Q E L C b a LL N Z L = J J v iJ N w ` 9 N H a m U c N CLI C E o d Z) m c � N v V �+ r j � �' a K ❑ y c U C v O u m ❑ N C d N a` m ❑ ti W T i a Z N O N $ 'E ❑ O c o_ FS W N M LL d m N LL [7 r NV LL N O tJ M O f0 M O b N m H W _ N O' N O N > N m N M^ N 12 N N F OJ N N r N N ~ O -�Oy N • I-- f0 r N N N LL d !2 N LL O O N N N (") N N N r N N N OI N t0'I N N VJ (O �2 N N N e- fD ..� LL r N N LL [O r N N LL r- m N N W r r N N O^ 3 0 � o r ` N F d O O r N M O N N � O d (n N O O NM � N 3 0 � o r ` V N M O N N � O d r N W O MM �- N 3 0 � o r ` V N M O - N N • 3 h � O (O N M O r M r d N 0 4J N W O MM �- N Attachment Three SDRMA BOARD OF DIRECTORS ELECTION POLICY NO. 2011 -02 JDPJM. Special District Risk Management Authority I A Property, Liability, Workers Compensation and Health Benefits Program Policy No. 2011 -02 SDRMA A POLICY OF THE BOARD OF DIRECTORS OF SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY ESTABLISHING GUIDELINES FOR DIRECTOR ELECTIONS, DIRECTOR APPOINTMENTS, AND CREATION OF A SUPERVISING ELECTION COMMITTEE WHEREAS, SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY (SDRMA) is a joint powers authority, created pursuant to Section 6500, et, seq. of the California Government Code; and WHEREAS, the Board of Directors recognizes that it is in the best interest of the Authority and its members to adopt a written policy for conducting the business of the Board; and WHEREAS, establishing guidelines for Director elections and appointments will help ensure a process that is consistent for all nominees and candidates, will promote active participation by SDRMA members in. the election /appointment process, and will help ensure election /appointment of the most qualified candidate(s); and WHEREAS, the Bylaws provide the Board with the option of conducting the election using a mail -in ballot process; and WHEREAS, the Board of Directors of SDRMA has an overriding and compelling Interest In insuring the accuracy of the election /appointment process of its Board members through the creation of an election committee; NOW, THEREFORE, it is the policy of the Board of Directors of SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY, until such policy shall have been amended or rescinded, that the following procedures shall be followed when conducting Director elections or filling a Director vacancy by appointment: 1.0. Election Schedule 1.1. Not later than the first Board meeting of each election year, the Board of Directors shall approve an election schedule based on the following criteria and time frames. "gr4lill 2.1. The Board of Directors herein establishes an election committee with the following composition, duties and responsibilities; The five (5) members of the Election Committee shall include two presently sitting members of the Board of Directors of SDRMA whose seats are not up for election, the Chief Financial Officer of SDRMA, and the CPA/auditor regularly used and retained by SDRMA at the time of counting ballots of and for an election to the Board of Directors. For good reason found and stated, the Board of Directors of SDRMA may appoint any CPA /auditor who, in the discretion of the Board of Directors, would appropriately serve the Election Committee. The General Counsel for SDRMA shall also sit as a member of the Election Committee with the additional obligation of providing legal advice to the balance of the Committee as legal questions may arise. 3.0. Member Notification of Election 3.1. Authority staff shall provide written notification, of an election for the Board of Directors, to all member agencies during March of each election year. Such written notification shall be provided a minimum of ninety (90) days prior to the distribution of ballots and shall include; (1) the number of Director seats to be filled by election; (2) a copy of this nomination and election procedure; and (3) an outline of nomination /election deadline dates. E � f . 11 4.1. A candidate seeking election, re- election or appointment to SDRMA's Board of Directors must be a member of the Governing Body or a full -time management employee of an SDRMA member. To qualify as a "full- Special District Risk Management Authority Page 1 of 6 Director Election and Appointment Policy January 5, 2011 Al Policy No. 2011 -02 __ S'BWLAL time management employee." the candidate must be a full -time, mana,,er ent -level (as determined by the Governing Body) employee .+hose wages are reported to the iF_ c- a "W -2" form. Only one (1) representative from any Membe- may serve on the Board of Dlrecors a; lnt same time. [Per Bylaws, Article II, (2) (b) 4.2. Each nominated candidate crust submit a properly completed and si,r�d "Statement of Qualifications" (required form attached) on or before the filing deadline In June in ode, for the candidate's name to be placed on the official ballot 6 candidate shall provide resporses 1( r. questions on the candidate's 'Statement of Qualifications'. E =ch nominated candidate's "Statemen „ Qualltications' must be filed on or before the aforementioned deadline by (1) personal delivery to SCP.MA'I ntlice; or (2) by U.S. mail received by the SDRMA office. Wher allots are mailed to the members-![ i ach candidate's "Statement of Qualifications" form will be distributed to the membership exactly as subTi"ted by the candidate to SDRMA. However, any attachments submitted by the candidate(s) with the S,ta er, ent of Qualifications will not be sent by SDRMA with the ballots to any members. 4.3. If a nominated candidate elect=_ not to use the provided form "Staterrien,. c` Qualifications," and prepares instead the candidate's own s.mpleted form, the candidate's form rcus: Include the title "Statement of Qualifications" and contain exec ly all information required and requeste J -y the provided form. NOTE: The candidate's "Statement of Qualifications" form must be s-t mired as a part of the nominating process. When ballots are mailed to the membership, each candidate "Statement of Qualifications' form will be distributed 'exactly as submitted" to SDRMA, except t,a* ern, attachments submitted by the candidate will not be sent to any SDRMA members 4.4. A candidate that does not submit a Candidate's Statement of Qualiflccstr ns which complies with Section 4.2 or 4.3 will be disqualified by the SDRMA Election Committee. 5.0. Nominal Procedure 5.1. Candidates seeking election o, reelection must be nominated by actr..r of their respective Governing Body. Only one (1) candidate may be nominated per member agency and ore '1) candidate shalt not represent more than one (1) member agency. A resolution from the candidates district/agency Governing Body nominating the candidate must be received by the Authority on or :efun the scheduled date in June. (A sample of the resolution Is enclosed). Actual receipt by the Authontr cn rr before the scheduled deadline date in June is required. The resolution nominating the candidate may be hand- delivered to the Authority or sent by U.S. mail. In the evert a candidate is nominated by Me (2) or more member agencies, he or she shall represent the member agency whose nominating resolution is fist receved by the Authority. The other member agency or agencies that nominated the candidate shall b' entitled to select a replacement nominee as long as a resolution nominating the replacement is w­\, c by the Authority prior to the scheduled deadline date. 5.2. A member may not nominate a candidate unless that member i, n `good standing' on the date the nominations are due. "Good standing" is defined as no accounts rece:v:. ble more than ninety (90) days past due. 5.3. The Election Committee, as hereinabove defined and comprised. shad rev ew all nominations received from members and will reject any nominations that do not meet all cf the nualif cations specified and set forth in this policy. Following the Elect oa Committee's review of all nornmanc ^s. the Election Committee shall direct Mat a ballot be prepared stating and listing all of the qualified nominees The ballot of qualified nominees shall be distributed to the mein ,ership for election by mail as descritec' br-low. 54. Upon verification or rejection of each nominee by the Election Commrlre staff will mail acknowledgment to both the nominee and the dlst, cl/agency of its acceptance or relecbo, ss a qualified nominee for election. Special District Risk Management Authort) Page 2 of 6 Director Election and Appointment Policy January 5, 2011 All. Policy No 2011 -02 SDRMA 5.5. A nominee requesting that his/her nomination be withdrawn prior to the election, shall submit such requests in writing to SDRMA's office a minimum of three (3) days prior to the scheduled date for mailing the ballots. After that date, all qualified nominees names shall appear on the ballot mailed to the membership. 6.0. Terms of Directors 6.1. The election of directors shall be held in each odd - numbered year. The terms of the directors elected by the Members will be staggered. Four directors will serve four -year terms, to end on December 31 of one odd- numbered year. Three directors will serve four -year terms, to end on December 31 of the alternate off - numbered year. [Per Bylaws, Article II, (3), paragraph 11. 7.0. Campaigning 7.1. SDRMA staff will mail each qualified candidate's *Statement of Qualifications ", "exactly as submitted" by the candidate with the ballots to the membership. 7.2. Candidates, at their own expense, may distribute additional information to member agency(s) after the ballots have been mailed and prior to the election. 7.3. SDRMA staff is prohibited from actively promoting a candidate or participating in the election process while on Authority premises. 7.4. SDRMA staff may provide member information, mailing lists, financial reports or operational data and information, that is normally available through the Public Records Act, to candidates to assist them in their research and campaigning. In addition to obtaining such information under the Public Records Act, candidates may request SDRMA staff prepare mailing labels for the distribution of campaign materials to member agencies. Under existing policy, charges will apply for this service. The SDRMA logo is trademarked for use by SDRMA only. Neither the logo, nor any other Trademark of SDRMA may be used in any campaign literature. No campaign literature is to imply support of any candidate by SDRMA. 7.5. SDRMA election mailings to the membership, including ballots and candidates' 'Statement of Qualifications ", shall be sent via first class mail. 8.1. As used in this section the following terms have the following meanings: 'Campaign Activity" means any activity that expressly advocates the election or defeat of a candidate or provides direct support to a candidate for his or her candidacy. 'Campaign activity" does not include the incidental and minimal use of public resources, such as equipment or office space, for campaign purposes or the use of public resources to nominate a candidate or vote in any Board of Directors election. "Candidate" means an individual who has been nominated by the Member Agency to have his or her name listed on the ballot for election to the Board of Directors. 'Expenditure' means a payment of Member Agency funds that is used for communications that expressly advocate the election or defeat of a clearly identified candidate. 'Expenditure' does not include the use of public funds to nominate a candidate or vote in any Board of Directors election. "Public resources" means any property or asset owned by the Member Agency, including, but not limited to, land, buildings, facilities, funds, equipment, supplies, telephones, computers, vehicles, travel, and Member Agency- compensated time. Special District Risk Management Authonty Page 3 of 6 Director Election and Appointment Policy January 5. 2011 Ak- Policy No. 2011 -02 SDRMA 8.2. An officer, official, employee, or consultant of a Member Agenq nay not expend or authorize the expenditure of any of the `urds of the Member Agency to support r,r ofoose the election or defeat of a candidate for the Board of Directors. 83. No officer, official, employee, Y consultant of a Member Agency sta ! uce or permit others to use public resources for campaign ac',vty 8.4. At any time during an elecf:cn campaign, if a Member Agency e, a officers, officials, employees or consultants violate this section, that Member Agency shall be ineiig,;;ia 'c nominate a candidate for the Board of Directors election in which the violation occurred. Any caned, to of an offending Member Agency shall be deemed to have withdrawn his or her candidacy. Pno, to dec c ring a Member Agency ineligible to nominate a candidate or a sperific candidate's candidacy withdrawn, r:e - lections Committee shall hold a hearing to determine whether ;r not a violation of this section occu,re9 Tie hearing shall be conducted pursuant to reasonable proced; res that the Elections Committee sha' I ret,cnbe, provided that the affected Member Agency or candidate shall have an opportunity to dispute .e violation. At the conclusion of the hearing, the Elections Comm tlp -. shall determine by a majority vote wheher -he violation occurred. 9.1. A ballot containing nominees for the Board of Directors, accepted and anp owed by the Election Committee, shall be mailed by first class Trail, to each SDRMA member agenc /, ecrept as provided in Section 9.2 below, no less than sixty (60) days prior to the deadline for receiving ba lots and the closing date for voting. Ballots shall show the date a -rd time the ballots must be received .0 S-rRMA's office. A self - addressed, stamped, return envelope shall be mailed with each ballot. 9.2. In the event that the number of auaiified /approved nominees is equal to or less than the number of director seats up for election, the mailing, of the ballots as outlined in Section 9 1 srall be waived. 9.3. Only those qualified nominees approved by the Election Committee v, ill be eligible candidates on the ballot. Write -in candidates shall not be accepted. 9.4. It is required that the Governing Body of each member vote on behJf of their agency (sample Resolution enclosed) and the ballot MUST be signed by the agency's Pres ding Of'r7er 9.5. A member may not vote unless the member was a member of the Acthxity in "good standing' on or before the nomination due date for the pending election. 'Good standing is c,'ined as no accounts receivable more than ninety (90) days past due. 9.6. A member may cast only one (1) vote for the same candidate. By vny of example, if there are four (4) candidates on the ballot, a member may not cast two (2) to four (4r rubs for any single candidate. Any ballot casting more than one C t vote for the same candidate will be :�)n; cered void. 9.7. A member may vote by using the official ballot provided by SDRMA, a- r cr,py of SDRMA's original ballot, or a reasonable duplicate prepared by the member agency. Whichever ;r ii,r three foregoing formats is used, the ballot must contain an orgmal signature and confirmation that -' e ballot was approved at a public meeting of the agency's Goverr:ing Body. Ballots submitted without a- arginal signature and /or without confirmation that the form of t`ia, "allot was approved at a public meat ng of the agency's Governing Body will be considered void. 9.8. Ballots may be returned using either hand - delivered or mailed In bali-1, - faxed or e- mailed ballots will not be accepted. Mailed in ballots must be addressed to, and hand- tlehvereC ballots must be delivered to, the Special District Risk Management Authority office presently locuah°d at 1112 I Street, Suite 300, Sacramento, California 95814 -2K? . 9.9. Any ballot received after the specified deadline will not be counted and ,vill be considered void. Special District Risk Management Authority Page 4 of 6 Director Election and Appointment Policy January 5, 2011 Policv No. 2011 -02 SDRMA 10.0. Election Results 10.1. All ballots will be opened and counted at SDRMA's office only after the deadline for receiving ballots. Ballots will be opened by SDRMA's Election Committee, no more than five (5) days after the closing deadline. Candidates receiving the highest number of votes shall be declared the elected director(s). 10.2. In the event of a tie, a coin toss shall be used to determine the elected director. The coin toss shall be conducted by the Election Committee at the time and place of the conclusion of counting ballots. PROCEDURE: In the event more than two (2) candidates tie, the coin toss shall be between two (2) candidates at a time based on the order in which their name appeared on the ballot This process shall be repeated, as needed, in cases where there are more than two (2) candidates. 1D.3. Excluding tie votes, within five (5) days after the ballots are opened and tabulated Authority staff shall advise the candidates and their respective agency in writing of the final election results. Copies of the results shall also be mailed /distributed to SDRMA's Board of Directors, staff and consultants and published in the first available CSDA newsletter. 10.4. If a director -elect withdraws after the election or fails to accept the Director seat prior to December 31, the Board shall name a new director -elect by going back to the ballots and awarding the seat to the candidate receiving the next highest number of votes during the election. 10.5. Staff shall invite newly elected director(s) to attend the Annual Membership meeting and all scheduled Board meeting(s) after confirmation of election results until the director(s) elect assume office. Director(s) elect will be reimbursed for expenses, except for director stipends, in accordance with approved director reimbursement policy (copy of policy shall be provided to newly elected directors). 10.6. A member or candidate dissatisfied with the election result may, within ten (10) days after the ballots are opened and tabulated, file with the Authority a written challenge and appeal. The challenge and appeal must clearly set forth the complaint and any and all facts in support of the challenge and appeal. Within ten (10) days after the ballots are opened and tabulated, the challenge and appeal shall be delivered and received by the Authority. Within five (5) days of receipt of the challenge and appeal, the Authority shall deliver the same to the Election Committee for decision. The Election Committee shall have absolute authority for deciding the challenge and appeal. Notice of the decision of the Election Committee shall be provided to the party filing the challenge and appeal within ten (10) days. 11.0. Director vacancy 11.1. If a director vacancy(s) occurs (Note 1), appointment of a replacement director for the balance of the unexpired term will be made by the remaining members of the SDRMA Board. In order to accomplish this in an orderly and consistent manner, when a vacancy(s) of an elected Director(s) occurs, the SDRMA Board of Directors, after discussion and consideration, shall, when deemed appropriate, instruct staff to: a) notify all then member entities that a vacancy has occurred; and b) said notice shall refer to the applicable Article in the By -laws in advising member entities and their eligible candidates of the steps to take to apply for appointment; and c) the SDRMA Board shall establish the closing date for the receipt of applications; and d) candidates shall submit the following, by the date specified in the notice: i) a letter of interest; and ii) a resume, with particular emphasis on the candidate's knowledge of special districts and risk management; and iii) a resolution from, or a letter approved by, the candidate's Governing Body nominating the candidate; and e) the Election Committee shall review all applications received, and shall reject any that do not meet all of the qualifications specified and set forth in this policy; and Special District Risk Management Authority Page 5 of 6 Director Election and Appointment Policy January 5, 2011 Policv No. 2011 SDRMA f) upon verification or rejector of each application by the Election Core ;o.e, staff will mail acknowledgement to both the applicant and the district/agency cf cs - cceplance or rejection of the applicant as a qualified canndate for appointment; and g) candidates shall be intervie tied at the next regularly scheduled r^eetrng rf the SDRMA Board of Directors following the date r' closure for the applications. Intervev.'a �,— I be in person, or if an unforeseen emergency arises, the interview may be by telephone al tf e same scheduled time; and h) the SDRMA Board shall mawe the appointment without undue de'at, 't..' need not act at the same meeting. Note 1: If the Director vacancy occurs within nine (9) months after the date if e::andidates were certified by the Election Committee or within nine (9) months after a candidate was appomled to f I a vacancy, then the Board shall have the option to interview and appoint the candidate(s) who did not receive sc'icient votes to be elected OR to interview and appoint from the pool of candidates from 11.1.g) above. If the Po, rd determines in its sole discretion that neither of these two options is appropriate, then staff shall be instructed 'r, nrr:,eed with the process described above in steps 11.1 a) to h). Revised and adopted this 51' day of jar aary 2011, by the Board of Directors ;I S:)ecial District Risk Management Authority, at a regular meeting thereof This policy rescinds existing Policy No %009 -07 and all other policies inconsiS :eni rerewrth. APP ED: 1 t David Aranda, President Board of Directors ATTES -: 3regory f.. Fall, ARM Chief Executive Officer Special District Risk Management Authority Page 6 of 6 Director Election and Appointment Policy January 5, 2011 Attachment Four SAMPLE RESOLUTION FOR CANDIDATE NOMINATION Available for download in Microsoft Word file format visit our website at www.sdrma.org Ak SDRMA Special District Risk Management Authority I A Property, Liability, Workers' Compensation and Health Benefits Program ]AGENCY NAME] RESOLUTION NO. A RESOLUTION OF THE GOVERNING BODY OF THE Al GENCY NAMEI NOMINATING [CANDIDATE'S NAMEI AS A CANDIDATE FOR ELECTION TO THE SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY BOARD OF DIRECTORS WHEREAS, the Special District Risk Management Authorit. ( SDRMA) is a Joint Powers Authority formed under California Government Code, Section 6500 et.seq., for the purpose of providing risk management and risk financing for California Special Districts and other local government agencies; and WHEREAS, the Joint Powers Agreement (JPA) and Bylaw, c f SDRMA set forth director qualifications, terms of office and election requirements; and WHEREAS, the Board of Directors of SDRMA established procedures and guidelines for the Director Election process; and WHEREAS, the Board of Directors of SDRMA established a policy requiring candidates seeking election to the SDRMA Board of Directors to be: 1) a board member or full -time management employee per SDRMA Election Policy 2011 -02, Section 4.1 and be an ac-ive member agency of either SDRMA's property/liability or workers' compensation programs. and 2' be nominated by resolution of their member agency's governing body, and 3) each nominated candidate must submit a completed and signed "Statement of Qualifications" on or before the filing deadline in June in order for the candidate's name to be placed on the official ballot. NOW, THEREFORE, BE IT RESOLVED the governing body of [AGENCY NAMEI nominates [CANDIDATE'S NANIEJ its [POSITION TITLE], as a candidate for the Board of Directors of the Special District Rick Management Authority: and further directs that a copy of this resolution be delivered to SDRMA on or before the May 4, 2011 filing deadline. ADOPTED this [DATE] of [MONTH/YEARI by the Governing Body of [AGENCY NAMEI by the following roll call votes: AYES: [LIST NAMES of GOVERNING BOARD VOTES] NAYES: ABSTAIN: " ABSENT: APPROVED President Board of Directors ATTEST Secretary Attachment Five CANDIDATE'S STATEMENT OF QUALIFICATIONS Ak SDR,MA, Special District Risk Management ANhonty I A Property, Liability, Workers' Compensation and Health Benefits Program Special District Risk Management Authority Board of Directors Candidate's Statement of Qualifications This information will be distributed to the membership with the ballot, "exactly as submitted" by the candidates — no attachments will be accepted. No statements are endorsed by SDRMA. Nominee /Candidate District /Agency Work Address Work Phone Home Phor Why do you want to serve on the SDRMA Board of Directors? (Response Required) What Board or committee experience do you have that would help you to be an effective Board Member? (SDRMA or any other organization) (Response Required) Page 1 of 2 November 2010 Special District Risk Management Authority Board of Directors Candidate's Statement of Qualifications What special skills, talents, or experience (including volunteer experience) do you have? (Response Required) 1 certify that I meet the candidate qualifications as outlined in the SDRMA election policy. I further certify that I am willing to serve as a director on SDRMA's Board of Directors. I will commit the time and effort necessary to serve. Please consider my application for nomination /candidacy to the Board of Directors. Candidate Signature Page 2 of 2 November 201 ] East Val ley Water District Board Memorandum No. B -08 -2011 From: Brian W. Tompkins / Chief Financial Officer / Subject: Flexible Spending Account Documents Date: February 8, 2011 Recommendation: Review and adopt The Flexible Spending Account Plan and Summary Plan Description (SPD) with an effective date of January 1, 2011 Background: In 2007 the employees association requested that Flexible Spending Accounts be made available by the District as an additional, inexpensive benefit. As a result, FSAs were included in the MOU with the Employees Association that was approved by the board in June 2007. After approval of the MOU, plan specifics were developed with ADP, agreements signed and submitted, and FSA participant accounts activated on February 1, 2008. Thereafter, each November, the District has held open enrollment for employees wishing to add to or drop their participation in the plan, and those changes are transmitted to ADP. ADP has advised staff that, in addition to recording changes in participation, staff should be submitting plan documents to the board for review and approval on an annual basis. Accordingly, attached are the two FSA plan documents. The first is the Flexible Spending Account Plan. This document gives definitions, describes the plan's operation and general provisions. The second document is the Flexible Spending Account Plan Summary Plan Description (SPD) which describes the specific options of EVWD's plan and guides employees in their plan participation using a Q & A format. Staff recommends that the board adopt these plan documents for the 2011 year. EAST VALLEY w,ATGR DISTRICT FLEXIBLE SPENDING ACCOUNT PLAN The Effective Date of this Document is JANUARY 1, 2011 ARTICLE I - DEFINITIONS ............................................................ ..............................1 1.01 Affiliated Employer ................... ............................... ......... ............................... 1 1.02 Anniversary Date .......................... ............................... ....... ............................... 1 1.03 Board of Directors ............................................................... ............................... 1 1.04 Change in Status .................................................................. ............................... 1 1.05 Code ............................................ ............................... ......... ..............................1 1.06 Compensation .......................... ............................... ............. ..............................1 1.07 Dependent ................................ ............................... ............. ..............................1 1.08 Dependent Care Reimbursement ............................. ........... ............................... 1 1.09 Earned Income .......................... ............................... ............ ............................... 1 1.10 Effective Date .......................... ............................... ............ ............................... 2 1.11 Eligible Day Care Expenses ................................................. ............................... 2 1.12 Eligible Medical Expenses .................................................... ............................... 2 1.13 Empl oyee ............................................................................... ..............................2 1.14 Employer ............................................................................... ............................... 2 1.15 ERISA ........................................ ............................... ........... ..............................3 1.16 Health Care Reimbursement .................................................. ............................... 3 1.17 Highly Compensated. Individual ............................................ ............................... 3 1.18 Key Employee ...................................................................... ............................... 3 1.19 NonelectiveContribution( s) .................................................. ..............................3 1.20 Participant ............................................................................. ..............................3 1.21 Plan ....................................................................................... ............................... 3 1.22 Plan Administrator ................................................................ ............................... 3 1.23 Plan Year .............................................................................. ............................... 3 1.24 Pre -tax Contribution( s) ........................................................ ............................... 3 1.25 Qualifying Employment- Related Expenses ......................... ............................... 4 1.26 Qualifying Individual ........................................................... ............................... 4 1.29 Reimbursement Account(s) or Account(s) ........................... ............................... 4 1.30 Salary Reduction Agreement ................................................ ............................... 4 1.31 Spouse .................................................................................... ..............................4 1.32 Student ................................................................................... ..............................4 1.33 Summary Plan Description or SPD ...................................... ............................... 5 ARTICLE II -- ELIGIBILITY AND PARTICIPATION ................ ..............................5 2.01 Eligibility to Participate ....................................................... ............................... 5 2.02 Termination of Participation ................................................ ............................... 5 2.03 Qualifying Leave Under the Family and Medical Leave Act .............................. 5 2.04 Non -FMLA Leave ................................................................. ............................... 5 ARTICLE III -- BENEFIT F. LECTIONS ......................................... ..............................5 3.01 Election of Contributions .................................................... ............................... 5 3.02 Initial Election Period .......................................................... ............................... 5 3.03 Annual Election Period ........................................................ ............................... 6 3.04 Change of Election .............................................................. ............................... 6 3.05 Impact of Termination of Employment on Election or Cessation of Eligibility.. 7 ARTICLE IV -- BENEFIT FUNDING AND CREDITS AND DEBITS TO ACCOUNTS......................................................................................... ..............................7 4.01 Source of Benefit Funding ..................................................... ............................... 7 4.02 Reduction of Certain Elections to Prevent Discrimination ... ............................... 7 4.03 Health Care Reimbursement .................................................. ............................... 7 4.04 Dependent Care Reimbursement ........................................... ............................... 8 ARTICLE V -- BENEFITS ................................................................. ..............................9 5.01 Reimbursement Accounts ...................................................... ............................... 9 5.02 Cash Benefit .......................................................................... ............................... 9 5.03 Repayment of Excess Reimbursements ................................. ............................... 9 5.04 Termination of Reimbursement Accounts ............................. ............................... 9 5.05 Coordination of Benefits under the HCSA ............................ ............................... 9 ARTICLE VI -- PLAN ADMINISTRATION. 6.01 Allocation of Authority ......................... 6.02 Payment of Administrative Expenses.... 6.03 Reporting and Disclosure Obligations... 6.04 Indemnification ....... ............................... 6.05 Substantiation of Expenses .................... 6.06 Reimbursement ....... ............................... 6.07 Annual Statements .. ............................... ARTICLE VII -- FUNDING AGENT ....................... .............................11 ARTICLE VIII -- CLAIMS PROCEDURES ................................... .............................12 ARTICLE IX -- AMENDMENT OR TERMINATION OF PLAN ............................12 9.01 Permanency ......................................................................... ............................... 12 9.02 Employer's Right to Amend ................................................ ............................... 12 9.03 Employer's Right to Terminate ........................................... ............................... 12 9.04 Determination of Effective Date of Amendment or Termination ...................... 12 ARTICLE X -- GENERAL PROVISIONS ....................... ............................... 10.01 Not an Employment Contract .................................. ............................... 10.02 Applicable Laws ...................................................... ............................... 10.03 Post- Mortem Payments ........................................... ............................... 10.04 Nonalienation of Benefits ........................................ ............................... 10.05 Mental or Physical Incompetency ........................... ............................... 10.06 Inability to Locate Payee ......................................... ............................... 10.07 Requirement for Proper Forms ................................ ............................... 10.08 Source of Payments ................................................. ............................... 10.09 Multiple Functions ................................................... ............................... 10.10 Tax Effects ............................................................... ............................... 10.11 Gender and Numbers ............................................... ............................... 10.12 Headings .................................................................. ............................... 10.13 Severability .............................................................. ............................... FA ...........13 .......... 13 .......... 13 .......... 13 .......... 13 .......... 13 .......... 13 .......... 13 .......... 13 .......... 13 .......... 14 .......... 14 .......... 14 .......... 14 10.14 Effect of Mistake ....................................... ............................... 10.15 Provisions Relating to Insurers .................. ............................... 10.16 Forfeiture of Unclaimed Reimbursement Account Benefits ..... ARTICLE XI — HIPAA PRIVACY AND SECURITY ........ 11.01 Scope and Purpose ....... . ................................. I ........ .. . 11.02 Effective Date .............................. ............................... 11.03 Use and Disclosure of PHI .......... ............................... 11.04 Conditions Imposed on Employer .............................. 11.05 Designated Emplovees Who May Receive PHI ..... _.. 11.06 Restrictions on Employees with Access to PHI ......... 11.07 Policies and Procedures ............ ............................... .. 11.08 Organized Health Care Arrangement ......................... 11.09 Privacy and Security Official ....... ............................... 11.10 Noncompliance ........................... ............................... 11.11 Definitions .................................. ............................... 11.12 Interpretation and Limited Applicability .................... 11.13 Services Performed for the Employer ........................ ........................ 14 ........................ 14 ........................ 14 ARTICLE XII -- CONTINUATION COVERAGE UNDER COBRA .......................18 3 PREAMBLE The Employer hereby establishes a Flexible Spending Account Plan ( "Plan") for its Employees for purposes of providing eligible Employees with the opportunity to choose from among a Health Care Spending Account ( "HCSA ") and/or a Dependent Care Spending Account ( "DCSA ") available under the Plan. The Plan is intended to qualify as • cafeteria plan under the provisions of Code § 125. The DCSA is intended to qualify as • Code § 129 dependent care assistance plan, and the HCSA is intended to qualify as a Code § 105 medical expense reimbursement plan. FLEXIBLE BENEFITS PLAN ARTICLE I — DEFINITIONS 1.01 "Affiliated Employer" means any entity who is considered with the Employer to be a single employer in accordance with Code § 414(b), (c), or (m) of the Code. 1.02 "Anniversary Date" means the first day of any Plan Year. 1.03 "Board of Directors" means the Board of Directors or other governing body of the Employer (the "Board "). The Board, upon adoption of this Plan, appoints the Plan Administrator to act on the Employer's behalf in all matters regarding the Plan. 1.04 "Change in Status" means any of the events described in the SPD, as well as any other events included under subsequent changes to Code § 125 or regulations issued under Code § 125, that the Plan Administrator (in its sole discretion) decides to recognize on a uniform and consistent basis as a reason to change the election mid -year. Note: See the SPD for requirements that must be met to permit certain mid -year election changes on account of a Change in Status. 1.05 "Code" means the Internal Revenue Code of 1986, as amended. 1.06 "Compensation" means the cash wages or salary paid to an Employee by the Employer. 1.07 "Dependent" means any individual who is a tax dependent of the Participant as defined generally in Code § 152; however, for Health Care Spending Account purposes, a Dependent shall be defined as set forth in Code § 105(b), and for Dependent Care Spending Account purposes (if offered under the Plan), a Dependent shall be defined as set forth in Code § 21(b). 1.08 "Dependent Care Reimbursement" shall have the meaning assigned to it by Section 5.01 of the Plan. 1.09 "Earned Income" means all income derived from wages, salaries, tips, self - employment, and other Compensation (such as disability or wage continuation benefits), but only if such amounts are includable in gross income for the taxable year. Earned Income does not include any other amounts excluded from Earned Income under Code § 32(c)(2), such as amounts received under a pensior or annuity, or pursuant to workers' compensation. 1.10 "Effective Date" of this Plan is the effective date set forth in the SPD. 1.11 "Eligible Day Care Expenses" means those Qualifying Employment - Related Expenses (as defined below) paid or incurred incident to searching for or maintaining employment after the date of the Employee's participation in the DCSA and during the Plan Year, other than amounts paid to: (a) an individual with respect to whom a Dependent deduction is allowable under Code § 151(c) to the Participant or his Spo Ase; (b) the Participant 's Spouse or parent of the Qualifying Individual; or (c) a "child" (as defined in Code § 152(f)(i)) of the Participant who is under 19 years of age at the end of the taxable year n which the expenses were incurred. 1.12 "Eligible Medical Expenses" means those expenses incurred by the Employee, or the Employee's Spouse or Dependents, after the date of the Employee's participation in the HCSA and during the Plan Year to the extent that the expense satisfies the conditions set forth in the Summary Plan Descr,ption and are for "medical care" as defined by Code § 213(d). For purposes of this Plan„ the following expenses are not considered "Eligible Medical Expenses" even if they otherwise constitute "medical care" under Code § 213(d): (i) expenses for qualified long -term care services (as defined in Code § 7702B(c)); and (ii) expenses incurred for health insurance premiums. For purposes of this Plan, an expense is "incurred" when the Participant or beneficiary is furnished the medical care or services giving rise to the claimed expense, regardless of when the expense is paid. 1.13 "Employee" means any individual who is considered to be in a legal employer - employee relationship with the Employer for federal tax - withholding purposes. Such term includes "former employees" for the limited purpose of allowing continued eligibility for benefits hereunder for the remainder of the Plan Year in which an Employee ceases to be employed by the Employer. The term "Employee" shall not include any leased employee (as that term is defined in Code § 414(n)) or any self - employed individual who receives from the Employer "net earnings from self - employment" within the meaning of Code § 401(c)(2) unless such individual is also an Employee. 1.14 "Employer" means the Employer and the Affiliated Employers named in the SPD provided, however, that when the Plan provides that the Employer has a certain power (e.g., the appointment of a Plan Administrator, entering into a contract with a third party insurer, or amendment or termination of the Plan) the term "Employer" shall mean only that entity named on the first line of the Plan Information Appendix of the SPD, and not any Affiliated Employer. Affiliated Employers who sign the Plan Information 2 Appendix and/or otherwise adopt the Plan shall be bound by the Plan as adopted and subsequently amended unless they clearly withdraw from participation herein. 1.15 "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as amended. 1.16 "Health Care Reimbursement" shall have the meaning assigned to it by Section 5.01 of the Plan. 1.17 "Highly Compensated Individual' means an individual defined under Code § 105(h), 125(e), or 414(q), as amended, as a "highly compensated individual" or a "highly compensated employee." 1.18 "Key Employee" means an individual who is a "key employee" as defined in Code § 125(b)(2), as amended. 1.19 "Nonelective Contribution (s)" means any amount that the Employer, in its sole discretion, may contribute on behalf of each Participant to provide benefits for such Participant and his or her Spouse and Dependents, if applicable, under one or more of the Reimbursement Account benefits offered under the Plan. The amount of Employer contribution that is applied towards the cost of the Reimbursement Account benefits(s) for each Participant and/or level of coverage shall be subject to the sole discretion of the Employer. The amount of Nonelective Contribution for each Participant may be adjusted upward or downward in the contributing Employer's sole discretion. The amount shall be calculated for each Plan Year in a uniform and nondiscriminatory manner and may be based upon the Participant's Dependent status, commencement or termination date of the Participant's employment during the Plan Year, and such other factors as the Employer shall prescribe. To the extent set forth in the SPD or enrollment material, the Employer may make Nonelective Contributions available to Participants and allow Participants to allocate the Nonelective Contributions among the various Reimbursement Accounts offered under the Plan in a manner set forth in the SPD of additional, taxable Compensation except as otherwise provided in the SPD or enrollment material. 1.20 "Participant" means an Employee who becomes a Participant pursuant to Article II. 1.21 "Plan" means the Flexible Spending Account Plan, the Summary Plan Description and (if applicable) the related Trust created by this document. 1.22 "Plan Administrator" means the person(s) or Committee identified in the SPD that is appointed by the Employer with authority, discretion, and responsibility to manage and direct the operation and administration of the Plan. If no such person is named, the Plan Administrator shall be the Employer. 1.23 "Plan Year" shall be the period of coverage set forth in the SPD. 1.24 "Pre -tax Contribution(s)" means amounts withheld from an Employee's Compensation pursuant to a Salary Reduction Agreement before any applicable state and federal taxes have been deducted. The amounts are withheld for purposes of purchasing one or more of the Reimbursement Accounts available unde- the Plan. This amount shall not exceed the contribution :'.imits attributable to the Reirr hursement Accounts afforded hereunder, and for purposes of Code § 125, shall be treated as an Employer contribution (this amount may, however, be treated as an Employee cor:tr hution for purposes of state insurance laws). 1.25 "Qualifying Employment- Related Expenses" means those expenses that would be considered to be employment- related expenses under § 21(b)(2) of the Code (relating to expenses for household and dependent care services necessary for gainful employment). 1.26 "Qualifying Individual' means an individual defined as a "Qualifying Individual" in the Summary Plan Description. 1.29 "Reimbursement Account(s)" or "Account(s)" shall be the funding mechanism by which amounts are withheld from an Employee's Compensation and retained for future Health Care Reimbursement and Dependent Care Reimbursement to the extent adopted by the Employer as set forth in the SPD No money shall actually be allocated to any individual Participant Account(s); any such Account(s) shall be of a memorandum nature, maintained by the Plan Administrator for accounting purposes, and shall not be representative of any identifiable trust assets. No interest will be credited to or paid on amounts credited to the Participant Account(s). 1.30 "Salary Reduction Agreement" means the actual or deemed agreement pursuant to which an eligible Employee or Participant elects to contribute his share of the cost of chosen Reimbursement Accounts with Pre -tax or after -tax Contributions and/or benefit credits (if offered under the Plan) in accordance with Article III herein. If the Employer utilizes an interactive voice response (IVR) system or web -based program for enrollment, the Salary Reduction Agreement may be maintained on an electronic database in accordance with all applicable federal and /or state laws. 1.31 "Spouse" means an individual who is legally married to a Participant (and who is treated as a spouse under the Code), but for purposes of the Dependent Care Reimbursement Plan provisions, shall not include an individual who, although married to the Participant, files a separate federal income tax return, maintains a separate, principal residence from the Participant during the last six months of the taxable year, and does not furnish more than one -half of the cost of maintaining the principal place of abode of the Qualifying Individual. 1.32 "Student" means an individual who, during each of five (5) or more calendar months during the Plan Year, is a full -time student at any college or university, the primary function of which is the conduct of formal instrtciion, and which routinely maintains a regular faculty and curriculum and normally has an enrolled student body in attendance at the location where its educational activities are regularly presented. 4 1.33 "Summary Plan Description" or "SPD" means the document attached as Attachment I to the Plan document that describes the term of Plan not set forth herein. The SPD is attached hereto and incorporated into this document by reference. ARTICLE II — ELIGIBILITY AND PARTICIPATION 2.01 Eligibility to Participate. Each Employee who satisfies the eligibility requirements set forth in the SPD shall be eligible to participate in this Plan as of any applicable entry date set forth in the SPD. 2.02 Termination of Participation. Participation shall terminate on the earliest of the dates set forth in the SPD. 2.03 Qualifying Leave Under the Family and Medical Leave Act. Notwithstanding any provision to the contrary in this Plan, if a Participant goes on a qualifying leave under the Family and Medical Leave Act of 1993 (the "FMLA "), then to the extent required by the FMLA, the Participant will be entitled to continue the Reimbursement Accounts and HCSA benefits on the same terms and conditions as if the Participant were still an active Employee. The requirements for continuing coverage, procedures for FMLA leave, and payment option(s) provided by the Employer (as described above) will be set forth in the SPD and will be administered in accordance with the regulations issued under Code § 125 and in accordance with the FMLA. 2.04 Non -FMLA Leave. If a Participant goes on an unpaid leave of absence that does not affect eligibility under this Plan or the Reimbursement Accounts chosen by the Participant, then the Participant will continue to participate and the contributions due for the Participant will be paid by one or more of the payment options described in the SPD. If a Participant goes on an unpaid leave that affects eligibility under this Plan or the Reimbursement Accounts chosen by the Participant, the election change rules in Section 3.04 will apply. If such policy requires coverage to continue during the leave but permits a Participant to discontinue contributions while on leave, the Participant will, upon returning from leave, be required to repay the contributions not paid by the Participant during the leave. ARTICLE III — BENEFIT ELECTIONS 3.01 Election of Contributions. A Participant may elect any combination of Pre -tax Contributions to fund the Reimbursement Accounts available under the Plan. The Employer may, but is not required, to allocate Nonelective Contributions to one or more Reimbursement Accounts and to the extent set forth in the SPD or enrollment material, may allow a Participant to allocate his allotted share of Nonelective Contributions among the various Reimbursement Accounts in a manner set forth in the SPD or enrollment material. 3.02 Initial Election Period. (a) Currently Eligible Employees. An Employee who is eligible to become a Participant in this Plan as of the Effective Date must complete, sign and W file a Salary Reduction Agreement with the Plan Administrator or its designee during the election period (as specified by the Plan Administrator) immediately preceding the Effective Date of the Plan in order to become a Participant on the Effective Date. The elections made by the Participant on this initial Salary Reduction Agreement shall be effective, subject to Section 3.04, for the Plan Year beginning on the Effective Date (b) New Employees and Employees Who Have Not Yet Satisfied The Plan's Waiting Period. An Employee who becomes eligible to become a Participant in this Plan after the Effective Date must complete, sign and file a Salary Reduction Agreement with the Plan Administrator (or its designated third party administrator as set forth on the Salary Reduction Agreement) during the Initial Election Period set forth in the SPD or the enrollment material. Participation will commerce under this Plan as set forth in the SPD. Coverage under the component Reimbursement Accounts will be effective in accordance with the governing provisions of such Reimbursement Accounts. (c) Failure to Elect. An eligible Employee who fails to complete, sign and file a Salary Reduction Agreement in accordance with paragraph (a) or (b) above during an initial election period may become a Participant on a later date in accordance with Section 3.03 or 3.04. 3.03 Annual Election Period. Each Employee whe is a Participant in this Plan or who is eligible to become a Participant in this Plan shall be notified, prior to each Anniversary Date of this Plan, of his right to become a Participant in this Plan, to continue participation in this Plan, or to modify or to cease part: cipation in this Plan, and shall be given a reasonable period of time in which to exercise sach right. Such period of time shall be known as the Annual Election Period. The date that the Annual Election Period commences and ends will be set forth in the SPD and'or the enrollment material. An election is made during the Annual Election Period in the manner set forth in the SPD. The consequences of failing to make an election during the Annual Election Period will be set forth in the SPD. 3.04 Change of Election. A Participant shall not make any changes to the Pre- tax Contribution amount or, where applicable, to the Participant's elected allocation of Nonelective Contributions except for election changes permitted under this Section 3.04, and for changes made during the Annual Election Period ( Section 3.03), changes caused by termination of employment (Section 3.05) and changes pursuant to FMLA (Section 2.04). Except as provided in the SPD for HIPAA special enrollment rights arising from the birth, adoption, or placement for adoption of a child, all election changes shall be effective on a prospective basis only (i.e., election changes will become effective no earlier than the first day of the first pay period coinciding with or immediately following the date that the election change was filed but, as determined by the Plan Administrator, 0 election changes may become effective later to the extent the coverage in the applicable component plan commences later). The circumstances under which a Participant may change his election under this Plan are set forth in the SPD. 3.05 Impact of Termination of Employment on Election or Cessation of Eligibility. Termination of employment or cessation of eligibility shall automatically revoke any Salary Reduction Agreement. Except as provided below, if revocation occurs under this Section 3.05, no new election with respect to Pre -tax Contributions may be made by such Participant during the remainder of the Plan Year. Rules governing elections for former Participants rehired during the same Plan Year shall be set forth in the SPD. ARTICLE IV — BENEFIT FUNDING AND CREDITS AND DEBITS TO ACCOUNTS 4.01 Source of Benefit Funding. The cost of coverage under the Reimbursement Accounts shall be funded by the Participant's Pre -tax Contributions and/or any Nonelective Contributions provided by the Employer. The required contributions for each of the Reimbursement Accounts offered under the Plan shall be made known to Employees in enrollment materials. Pre -tax Contributions shall equal the contributions required from the Participant less any available Nonelective Contributions allocated thereto by the Employer, or where applicable, the contributions required from the Participant for coverage of the Participant or the Participant's Spouse or Dependents under the Reimbursement Accounts elected by the Participant under this Plan. Amounts withheld from a Participant's Compensation as Pre -tax Contributions shall be applied to fund benefits as soon as administratively feasible. 4.02 Reduction of Certain Elections to Prevent Discrimination. If the Plan Administrator determines, before or during any Plan Year, that the Plan may fail to satisfy for such Plan Year any requirement imposed by the Code or any limitation on Pre- tax Contributions allocable to Key Employees or to Highly Compensated Individuals, the Plan Administrator shall take such action(s) as it deems appropriate, under rules uniformly applicable to similarly situated Participants, to assure compliance with such requirement or limitation. Such action may include, without limitation, a modification or revocation of a Highly Compensated Individual's or Key Employee's election without the consent of such individual. 4.03 Health Care Reimbursement. Each Participant's HCSA will be credited for Health Care Reimbursement with amounts withheld from the Participant's Compensation and any Nonelective Contributions allocated thereto by the Employer or, where applicable, the Participant. The Account will be debited for Health Care Reimbursements disbursed to the Participant in accordance with Article V of this document. The entire amount elected by the Participant on the Salary Reduction Agreement as an annual amount for the Plan Year for Health Care Reimbursement less any Health Care Reimbursements already disbursed to the Participant for Eligible Medical Expenses incurred during the Plan Year shall be available to the Participant at any time during the Plan Year without regard to the balance in the HCSA (provided that 7 the periodic contributions have been made). Thus, the maximum amount of Health Care Reimbursement at any particular time during the Plan Year %,,it not relate to the amount that a Participant has had credited to his HCSA. In no event will the amount of Health Care Reimbursements in any Plan Year exceed the annual amount specified for the Plan Year in the Salary Reduction Agreement for Health Care Re,mbursement. Any amount credited to the HCSA shall be forfeited by the Participant and restored to the Employer if it has not been applied by the end of the Run -out Period set �oith in the SPD to provide Health Care Reimbursement for expenses incurred during the Plan Year. The Employer has the discretion to establish a grace period following the end of the Plan Year during which amounts unused as of the end of the Plan Year may be used to reimburse Eligible Medical Expenses incurred during the grace period. In no event can the grace period exceed two (2) months and fifteen (15) days following the end of the Plan Year. The Employer may establish a Run -out Period following the :nd of the grace period. If adopted, all amounts allocated to the HCSA that are not used to reimburse Eligible Medical Expenses incurred during the Plan Year and /or the grace period shall be forfeited. Amounts so forfeited shall be used in a manner that is permitted within the applicable Department of Labor ( "DOL") or Internal Revenue Service ( "IRS ") regulations. The maximum annual reimbursement under the HCSA shall be set forth in the SPD. The Employer may establish a minimum annual reimbursement amount as set forth in the SPD. 4.04 Dependent Care Reimbursement. To the extent offered under the Plan, each Participant's DCSA will be credited for Dependent Care Reimbursement with amounts withheld from the Participant's Compensation and any Nonelective Contributions allocated thereto by the Employer or, where applicable, the Participant. The Dependent Care Account will be debited for Dependent Care Reimbursements disbursed to the Participant in accordance with Article V of this document. In the event that the amount in the Account is less than the amount of reimbursable claims at any time during the Plan Year, the excess part of the claim will be carried over into following months within the same Plan Year, to be paid out as the Dependent Care Account balance becomes adequate. In no event will the amount of Dependent Care Reimbursements exceed the amount credited to the Dependent Care Account for any Plan Year. Any amount allocated to the Dependent Care Account shall be forfeited by the Participant and restored to the Employer if it has not been applied by the end of the Run -out Period to provide Dependent Care Reimbursement for the Plan Year within the Run -out Period set forth in the SPD The Employer has the discretion to establish a grace period following the end of the Plan Year during which amounts unused as of the end of the Plan Year may be used to reimburse Eligible Day Care Expenses incur, ed during the grace period. In no event can the grace period exceed two (2) months and fifteen (15) days following the end of the Plan Year. The Employer may establish a Run -out Period following the end of the grace period. If adopted, all amounts allocated to the DCSA that are not used to reimburse Eligible Day Care Expenses incurred during the Plan Year and/or the grace period shall be forfeited. Amounts so forfeited shall be used in a manner that is permitted within the applicable Department of Labor ( "DOL ") or Internal Revenue Service ( "IRS ") regulations. The maximum annual reimbursement under the DCSA shall be set forth in the SPD. The Employer may establish a minimum annual reimbursement amount as set forth in the SPD. E3 ARTICLE V — BENEFITS 5.01 Reimbursement Accounts. The Plan shall provide reimbursement (direct or indirect) for eligible expenses under the Reimbursement Account(s) elected by the Participant. The HCSA shall provide Health Care Reimbursement, which is reimbursement for Eligible Medical Expenses. The DCSA shall provide Dependent Care Reimbursement, which is reimbursement for Eligible Day Care Expenses. Payment shall be made to the Participant in cash as reimbursement for Eligible Medical Expenses and/or Eligible Day Care Expenses, whichever is elected by the Participant, that are incurred by the Participant or, where applicable, his Spouse or Dependents while he is a Participant during the Plan Year for which the Participant's election is effective, provided that the substantiation requirements of Section 6.05 herein are satisfied. 5.02 Cash Benefit. To the extent that a Participant does not elect to have the maximum amount of his Compensation contributed as a Pre -tax Contribution, such amount not elected shall be paid to the Participant in the form of normal Compensation payments; provided, however, that any applicable Nonelective Contributions may not be received in the form of cash Compensation, except as otherwise provided for in the SPD or the enrollment material. 5.03 Repayment of Excess Reimbursements. If, as of the end of any Plan Year, it is determined that a Participant has received payments under this Plan that exceed the amount of Eligible Medical Expenses and/or Eligible Day Care Expenses that have been substantiated by such Participant during the Plan Year as required by Section 6.05 herein, the Plan Administrator shall give the Participant prompt written notice of any such excess amount, and the Participant shall repay the amount of such excess to the Employer within sixty (60) days of receipt of such notification. 5.04 Termination of Reimbursement Accounts. Coverage under the HCSA and/or DCSA shall cease as of the day in which a Participant is no longer employed by the Employer. Provided, however, that the Employer may allow Participants to submit claims for reimbursement for Eligible Day Care Expenses arising during the Plan Year, including the period of coverage following the date participation has ceased at any time until the end of the Run -out Period set forth in the SPD, but only up to the amount allocated to the DCSA as of the date of termination. Participants in the HCSA may submit claims for reimbursement for Eligible Medical Expenses arising during the Plan Year and before the date of separation from service at any time until the end of the Run - out Period set forth in the SPD. Unless a COBRA election is made as set forth in the SPD, Participants shall not be entitled to receive reimbursement for Eligible Medical Expenses incurred after employment ceases under this Section. Any unused amounts remaining in the Participant's HCSA and/or DCSA at the expiration of the Plan Year (as set forth in the SPD) shall be treated in accordance with Sections 4.03 or 4.04. 5.05 Coordination of Benefits under the HCSA. The HCSA is intended to pay benefits solely for otherwise unreimbursed medical expenses. Accordingly, it shall not be considered a group health plan for coordination of benefits purposes, and its 2 benefits shall not be taken into account when determining benefits payable under any other plan. ` ARTICLE VI — PLAN ADMINISTRATION 6.01 Allocation of Authority. The Board of Directors or applicable governing body (or an authorized officer of the Employer) appoints a Piar� Administrator that keeps the records for the Plan and shall control and manage the operation and administration of the Plan. The Plan Administrator shall have the exclusive right to interpret the Plan and to decide all matters arising thereunder, including the right to make determinations of fact, and construe and interpret possible ambiguities, inconsistencies, or omissions in the Plan and the SPD issued in connection with the Plan. All determinations of the Plan Administrator with respect to any matter hereunder shall be con :lusive and binding on all persons. Without limiting the generality of the foregoing. the Plan Administrator shall have the following powers and duties: (a) To require any person to furnish such reasonable information as it may request for the purpose of the proper administration of the Plan as a condition to receiving any benefits under the Plar; (b) To make and enforce such rules and regulations and prescribe the use of such forms as it shall deem necessary for the efficient administration of the Plan; (c) To decide on questions concerning the Plan and the eligibility of any Employee to participate in the Plan and to make or revoke elections under the Plan, in accordance with the provisions of the Plan; (d) To determine the amount of benefits which shall be payable to any person in accordance with the provisions of the Plan; to inform the Employer or insurer as appropriate, of the amount of such benefits; and to provide a full and fair review to any Participant whose claim for benefits has been denied in whole or in part; (e) To designate other persons to carry out any duty or power which may or may not otherwise be a fiduciary responsibility of the Plan Administrator under the terms of the Plan (such entity will he referred to as a third party administrator and shall be identified in the SPD ): (f) To keep records of all acts and determinations, and to keep all such records, books of account, and data and other documents as may be necessary for the proper administration of the Plan; and (g) To do all things necessary to operate and administer the Plan in accordance with its provisions. 10 6.02 Payment of Administrative Expenses. Except as otherwise provided in the SPD, the Employer currently pays all reasonable expenses incurred in administering the Plan. 6.03 Reporting and Disclosure Obligations. Unless specified otherwise, it shall be the Employer and Plan Administrator's sole responsibility to comply with all filing, reporting, and disclosure requirements imposed by the DOL and /or IRS, specifically including, but not limited to, creating, filing and distributing Summary Annual Reports, Form 5500s, and SPDs. Furthermore, the Employer and Plan Administrator shall be required to amend the Plan as is necessary to ensure compliance with applicable tax and other laws and regulations. 6.04 Indemnification. The Plan Administrator shall be indemnified by the Employer against claims, and the expenses of defending against such claims, resulting from any action or conduct relating to the administration of the Plan except claims arising from gross negligence, willful neglect, or willful misconduct. 6.05 Substantiation of Expenses. Each Participant must submit a written claim to the Plan Administrator identified in the SPD or its designated Plan service provider to receive reimbursements from the HCSA and/or DCSA. Such claim must be submitted on a form provided by the Plan Administrator and must be accompanied by a written statement/bill from an independent third party stating that the expense has been incurred and the amount thereof. The forms shall contain such evidence as the Plan Administrator shall deem necessary as to substantiate the nature, the amount, and timeliness of any expenses that may be reimbursed. 6.06 Reimbursement. Reimbursements shall be made as soon as administratively feasible after the required forms have been received by the Plan Administrator identified in the SPD or its designated Plan service provider. Reimbursements of less than $15 may be carried forward and aggregated with future reimbursements until the reimbursable amount is greater than $15. However, claims for reimbursements outstanding at the end of the Plan Year shall be reimbursed without regard to the $15 threshold limit. Year-end expense reimbursement requests must be submitted to the Plan Administrator (or its designee, as set forth in the SPD) before the end of the Run -out Period set forth in the SPD. 6.07 Annual Statements. The Plan Administrator shall furnish each Participant with an annual statement, showing the amounts paid or expenses incurred by the Employer in providing Medical and/or Dependent Care Expense Reimbursement during the previous calendar year and the respective Reimbursement Account balance(s) on or before January 31 following the close of the applicable Plan Year. ARTICLE VII — FUNDING AGENT The Plan shall be funded with amounts withheld from Compensation pursuant to Salary Reduction Agreements, and/or Nonelective Contributions provided by the Employer, if any. The Employer will apply all such amounts, without regard to their 11 source, to pay for the welfare benefits provided herein as soon as administratively feasible and shall comply with all applicable regulations promulgated by the DOL taking into consideration any enforcement procedures adopted by the DOL. Except as set forth in the SPD, all amounts will be paid from the Employer's general assets. ARTICLE VIII —CLAIMS PROCEDURES The Plan has established procedures for reviewing claims denied under this Plan and those claims review procedures are set forth in the SPE The Plan's claim review procedures set forth in the SPD shall only apply to issues germane to the pre -tax benefits available under this Plan (e.g., such as a determination of a Change in Status; change in cost or coverage; or eligibility and participation matters under this Plan document), and to the extent offered under the Plan, claims for benefits under the Reimbursement Accounts. ARTICLE IX — AMENDMENT OR TERMINATION OF PLAN 9.01 Permanency. While the Employer fully expects that this Plan will continue indefinitely, permanency of the Plan will be subject to the Employer's right to amend or terminate the Plan, as provided in Sections 9.02 and 9.03 below. Nothing in this Plan is intended to be or shall be construed to entitle any Participant, retired or otherwise, to vested or non - terminable benefits. 9.02 Employer's Right to Amend. The Employer reserves the right to amend at any time any or all of the provisions of the Plan. All amendments shall be made in writing and shall be approved by the Employer in accordance with its normal procedures for transacting business (e.g., by approval by the Board of Directors through a meeting or unanimous consent of all Board members). Such amendments may apply retroactively or prospectively as set forth in the amendment. Any amendment made by the Employer shall be deemed to be approved and adopted by any Affiliated Employer. 9.03 Employer's Right to Terminate. The Employer reserves the right to discontinue or terminate the Plan without prejudice at any time and for any reason without prior notice. Such decision to terminate the Plan shall be made in writing and shall be approved by the Employer in accordance with its normal procedures for transacting business. Affiliated Employers may withdraw from participation in the Plan but may not terminate the Plan. 9.04 Determination of Effective Date of Amendment or Termination. Any such amendment, discontinuance, or termination shall be effective as of such date as the Employer shall determine. No amendment, discontinuance, or termination shall allow the return to any Employer of any Reimbursement Account balance for its use for any purpose other than for the exclusive benefit of the Participants and their beneficiaries except as provided in Section 4.03 and 4.04 herein. 12 ARTICLE X — GENERAL PROVISIONS 10.01 Not an Employment Contract. Neither this Plan nor any action taken with respect to it shall confer upon any person the right to continue employment with any Employer. 10.02 Applicable Laws. The provisions of the Plan shall be construed, administered and enforced according to applicable federal law and the laws of the state of the principal place of business of the Employer to the extent not preempted. 10.03 Post - Mortem Payments. Any benefit payable under the Plan after the death of a Participant shall be paid to his surviving Spouse (if any), otherwise, to his estate. If there is doubt as to the right of any beneficiary to receive any amount, the Plan Administrator may retain such amount until the rights thereto are determined, without liability for any interest thereon. 10.04 Nonalienation of Benefits. Except as expressly provided by the Plan Administrator, no benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to do so shall be void. No benefit under the Plan shall in any manner be liable for or subject to the debts, contracts, liabilities, engagements, or torts of any person. 10.05 Mental or Physical Incompetency. Every person receiving or claiming benefits under the Plan shall be presumed to be mentally and physically competent and of age until the Plan Administrator receives a written notice, in a form and manner acceptable to it, that such person is mentally or physically incompetent or a minor, and that a guardian, conservator, or other person legally vested with the care of his estate has been appointed. 10.06 Inability to Locate Payee. If the Plan Administrator is unable to make payment to any Participant or other person to whom a payment is due under the Plan because it cannot ascertain the identity or whereabouts of such Participants or other person after reasonable efforts have been made to identify or locate such person, such payment and all subsequent payments otherwise due to such Participant or other person shall be forfeited one year after the date any such payment first became due. 10.07 Requirement for Proper Forms. All communications in connection with the Plan made by a Participant shall become effective only when duly executed on any forms as may be required and furnished by, and filed with, the Plan Administrator. 10.08 Source of Payments. The Employer shall be the sole source of benefits under the Plan unless the Employer has established a trust. No Employee or beneficiary shall have any right to, or interest in, any assets of the Employer upon termination of employment or otherwise, except as provided from time to time under the Plan, and then only to the extent of the benefits payable under the Plan to such Employee or beneficiary. 10.09 Multiple Functions. Any person or group of persons may serve in more than one fiduciary capacity with respect to the Plan. 13 10.10 Tax Effects. Neither the Employer, its agents, nor the Plan Administrator makes any warranty or other representation as to whether any Pre -tax Contributions made to or on behalf of any Participant hereunder will be treated as excludable from gross income for local, state, or federal income tax purposes. If for any reason it is determined that any amount paid for the benefit of a Participant or bcnefciary is includable in an Employee's gross income for local, state, or federal income tax purposes, then under no circumstances shall the recipient have any recourse against the Plan Administrator or the Employer with respect to any increased taxes or other losses or damages suffered by the Employees as a result thereof. The Plan is designed and is intended to be operated as a "cafeteria plan" under § 125 of the Code. 10.11 Gender and Number. Masculine pronouns include the feminine as well as the neuter genders, and the singular shall include the plural, unless indicated otherwise by the context. 10.12 Headings. The Article and Section headings contained herein are for convenience of reference only, and shall not be construed as defining or limiting the matter contained thereunder. 10.13 Severability. Should any part of this Plan subsequently be invalidated by a court of competent jurisdiction, the remainder thereof shall be given effect to the maximum extent possible. 10.14 Effect of Mistake. In the event of a mistake as to the eligibility or participation of an Employee, the allocations made to the Account of any Participant, the amount of distributions made or to be made to a Participant or other person, the Plan Administrator shall, to the extent it deems possible, cause to be allocated or cause to be withheld or accelerated, or otherwise make adjustment of, such amounts and will, in its judgment, accord to such Participant or other person the credits to the Account or distributions to which he is properly entitled under the Plar. Such action by the Plan Administrator may include withholding of any amounts due the Plan or the Employer from Compensation paid by the Employer. 10.15 Provisions Relating to Insurers. No insurer shall be required or permitted to issue an insurance policy or contract that is inconsistent with the purposes of this Plan, nor be bound to take any action not in accordance with the terms of any policy or contract with this Plan. The insurer shall not be deemed to be a party to this Plan, nor shall it be bound to interpret the construction or validity of The Plan. The insurer shall be protected from its good faith reliance on the written representations and instructions of the Trustee and the Plan Administrator, and shall not be responsible for the initial or continued qualified status of the Plan. 10.16 Forfeiture of Unclaimed Reimbursement Account Benefits. Any Reimbursement Account benefit payments that are unclaimed (e.g., uncashed benefit checks) by the close of the Plan Year following the Plan fear in which the Health or Dependent Care Expense was incurred shall be forfeited. 14 ARTICLE XI — HIPAA PRIVACY AND SECURITY 11.01 Scope and Purpose. With regard to the HCSA, the Plan will use protected health information ( "PHI ") to the extent of and in accordance with the uses and disclosures permitted by the Health Insurance Portability and Accountability Act of 1996 ( "HIPAA "). Specifically, the Plan will use and disclose PHI for purposes related to health care treatment, payment for health care, and health care operations as set forth below. 11.02 Effective Date. This Article XI is effective on the applicable effective date of the Privacy and Security Rules. 11.03 Use and Disclosure of PHI. (a) General. The Plan will use PHI to the extent of and in accordance with the uses and disclosures permitted by HIPAA, including but not limited to health care treatment, payment for health care, health care operations and as required by law. The Privacy Notice will list the specific uses and disclosure of PHI that will be made by the Plan. (b) Disclosure to the Employer. The Plan will disclose PHI to the Employer, or where applicable, an Affiliated Employer only upon receipt of written certification from the Employer that: (i) The Plan document has been amended to incorporate the provisions in this Article XI; and The Employer agrees to implement the provisions in Section 11.04 herein. 11.04 Conditions Imposed on Employer. Notwithstanding any provision of the Plan to the contrary, the Employer agrees: (a) Not to use or disclose PHI other than as permitted or required by this Article XI or as required by law; (b) To ensure that any agents, including a subcontractor, to whom the Employer provides PHI received from the Plan agree to the same restrictions and conditions that apply to the Employer with respect to PHI received or created on behalf of the Plan and ensure that such individuals agree to implement reasonable and appropriate security measures to protect electronic PHI; (c) Not use or disclose an individual's PHI for employment- related purposes (including hiring, firing, promotion, assignment or scheduling) unless authorized by the Individual; 15 (d) Not to use or disclose an Individual's PHI in connection with any other non - health benefit program or employee benefit plan of the Employer unless authorized by the Individual; (e) To report to the Plan any use or disclosure of PHI that is inconsistent with this Article XI, if it becomes aware of an inconsistent use or disclosure, and to report to the Plan any use or diSCIOSIII "e of PHI that is a Security Incident of which it becomes aware; (f) To provide Individuals with access to PHI in accordance with 45 C.F.R. § 164.524; (g) To make available PHI for amendment and incorporate any amendments to PHI in accordance with 45 C.F.R. § 164.526; (h) To make available the information required to provide an accounting of disclosures in accordance with 45 C.F.R. § 154.5 28; (i) To make internal practices, books and records relating to the use and disclosure of PHI received from the Plan available to the Secretary of Health and Human Services for purposes of determining the Plan's compliance with HIPAA; (j) If feasible, to return or destroy all PHI received from the Plan that the Employer maintains in any form, and retain no copies of such PHI when no longer needed for the purpose for which disclosure was made. If return or destruction is not feasible, limit further uses and disclosures to those purposes that make the return or destruction infeasible; and (k) To ensure adequate separation between the Plan and Employer as required by 45 C.F.R. § 164.504(f)(2)(iii) and described ir. this Article XI. 11.05 Designated Employees Who May Receive PHI. In accordance with the Privacy Rules, only certain Employees who perform Plan administrative functions may be given access to PHI. Those Employees who have access to PHI from the Plan are listed in the Privacy Notice, either by name or individual posit ion. 11.06 Restrictions on Employees with Access to PHI. The Employees who have access to PHI listed in the Privacy Notice may only use: and disclose PHI for Plan administration functions that the Employer performs for the Plan, as set forth in the Privacy Notice, including but not limited to, quality assurance, claims processing, auditing, and monitoring. 11.07 Policies and Procedures. The Employer will implement Policies and Procedures setting forth operating rules to implement the provisions hereof. In addition, the Employer will implement administrative, physical and technical safeguards that reasonably and appropriately protect the confidentiality, ntegn-ity, and availability of 16 electronic PHI that the Employer creates, receives, maintains or transmits on behalf of the Plan. 11.08 Organized Health Care Arrangement. The Plan Administrator may intend the Plan to form part of an Organized Health Care Arrangement along with any other benefit under a covered health plan (under 45 C.F.R. § 160.103) provided by the Employer. 11.09 Privacy and Security Official. The Plan shall designate a Privacy and a Security Official, who will be responsible for the Plan's compliance with HIPAA's Privacy Rules and HIPAA's Security Rules. The Privacy Official and the Security Official may be the same individual. The Privacy and Security Official may contract with or otherwise utilize the services of attorneys, accountants, brokers, consultants, or other third party experts as the Privacy and Security Official deems necessary or advisable. In addition and notwithstanding any provision of this Plan to the contrary, the Privacy Official shall be responsible for and have the authority to perform the following: (a) Accepting and verifying the accuracy and completeness of any certification provided by the Employer under this Article XI; (b) Transmitting the certification to any third parties as may be necessary to permit them to disclose PHI to Employer; (c) Establishing and implementing Policies and Procedures with respect to PHI that are designed to ensure compliance by the Plan with the requirements of H1PAA; (d) Establishing and overseeing proper training of the Plan, or Employer personnel who will have access to PHI; (e) Any other duty or responsibility that the Privacy and Security Official, in his or her sole capacity, deems necessary or appropriate to comply with the provisions of HIPAA and the purposes of this Article XI. 11.10 Noncompliance. The Employer shall provide a mechanism for resolving issues of noncompliance, including disciplinary sanctions for personnel who do not comply with the provisions of this Article XI. 11.11 Definitions. As used in this Article XI, each of the following capitalized terms shall have the respective meaning given below: "Individual" means the person who is the subject of the heath information created, received or maintained by the Plan or Employer. "Organized Health Care Arrangement" means the relationship of separate legal entities as defined in 45 C.F.R. § 160.103. 17 "Privacy Notice" means the notice of the Plan's privacy practices distributed to Plan Participants in accordance with 45 C.F.R. § 164.520, as amended from time to time. "Privacy Rules" means the privacy provisions of HIPAA and the regulations in 45 C.F.R. Parts 160 and 164. "Protected Health Information" or "PHI" means individually identifiable health information as defined in 45 C.F.R. § 160.103. "Security Incident" means an incident as defined in 45 ^.F.R. §164.304. 11.12 Interpretation and Limited Applicability, This Article XI serves the sole purpose of complying with the requirements of HIPAA. and shall be interpreted and construed in a manner to effectuate this purpose. Neither this Article XI nor the duties, powers, responsibilities, and obligations listed herein shall he taken into account in determining the amount or nature of the benefits provided to any person covered under this Plan, nor shall they inure to the benefit of any third parlies. To the extent that any of the provisions of this Article XI are no longer required by IiIPAA, they shall be deemed deleted and shall have no further force or effect. 11.13 Services Performed for the Employer. 'Notwithstanding any other provision of this Plan to the contrary, all services performed by a business associate for the Plan in accordance with the applicable service agreemew shall be deemed to be performed on behalf of the Plan and subject to the administrative simplification provisions of HIPAA contained in 45 C.F.R. parts 160 throul >h 164, except services that relate to eligibility and enrollment in the Plan. If a business associate of the Plan performs any services that relate to eligibility and enrollment to the Plan, these services shall be deemed to be performed on behalf of the Employer in its capacity as Plan Sponsor and not on behalf of the Plan. ARTICLE XII — CONTINUATION COVERAGE UNDER COBRA The SPD includes provisions that shall be applicable to the HCSA to the extent the HCSA is a "group health plan" as defined by Code §§ 4980B and 5000(b)(1) and the regulations promulgated thereunder and to the extent it is offered under the Plan. The intent of those provisions (as incorporated in this Article) is to extend continuation rights required by COBRA. IN WITNESS WHEREOF, the Employer has caused this Plan and Summary Plan Description to be executed on the day of to ratify the adoption of the Plan adopted and effective as of the Effective Date. WITNESS: Corporate Officer Employer: 19 East Valley Water District FLEXIBLE SPENDING ACCOUNT PLAN SUMMARY PLAN DESCRIPTION ( "SPD ") Table of Contents INTRODUCTION TO THE FLEXIBLE SPENDING ACCOUNT PLAN SUMMARY PLAN DESCRIPTION....................................................................................... ..............................1 PART I: GENERAL INFORMATION ABOUT THE PLAN ..................... ..............................2 Q -1. What is the purpose of the Plan? ................................................................. ..............................2 Q -2. Who can participate in the Plan? ................................................................ ..............................2 Q -3. When does my participation in the Plan end? ............................................. ..............................2 Q -4. How do I become a Partic� pant? ................................................................. ..............................2 Q -5. What are the enrollment periods under the Plan? ....................................... ..............................3 Q -6. How are the contributions to the spending accounts made under the Pl an? ..............................3 Q -7. Can I ever change my election during the Plan Year? ................................ ..............................4 Q -8. How long will the Plan remain in effect? .................................................... ..............................7 Q -9. What effect will Plan participation have on Social Security, and other benefits ? ......................8 PART II. HCSA BENEFITS .................................................................... ..............................9 Q -10. What is the "Health Care Spending Account "? .......................................... ..............................9 Q -11. What is the maximum annual reimbursement amount that I may elect under the HCSA? .......9 Q -12. How are amounts allocated to the HCSA withheld from my pay? .............. ..............................9 Q -13. What amounts will be available for reimbursement of Eli gible Medical Expenses at any particular time during the Plan Year? .......................................................... ..............................9 Q -14. How do I receive reimbursement under the HCSA? ................................... ..............................9 Q -15. What is an 'Eligible Medical Expense "? .................................................... .............................10 Q -16. When must the expenses be incurred in order to receive reimbursement? ..............................1 1 Q -17. What if the Eligible Medical Expenses I incur during the Plan Year are less than the annual amount I have allocated to the HCSA? ....................................................... .............................11 Q -18. What happens if a claim for benefits under the HCSA is denied? .............. .............................11 Q -19. What happens to unclaimed HCSA reimbursements° ................................ .............................12 Q -20. What is COBRA continuation coverage? ................................................... .............................12 Q -21. Will my health information be kept confidential? ........................................ .............................14 Q -22. How does this HCSA interact with a Health Reimbursement Arrangement sponsored by my Employer? ................................................................................................... .............................14 Q -23. How long will the HCSA remain in effect? ............................................... .............................14 PARTIII DCSA BENEFITS ................................................................... .............................17 Q -24. What is the "Dependent Care Spending Account"? ................................... .............................17 Q -25. What is the maximum reimbursement amount that I may elect under the DCSA ? .................17 Q -26. How are amounts allocated to the DCSA withheld from m}, pay? ............. .............................17 Q -27. What amounts will be available for reimbursement of El igible Day Care Expenses at any particular time during the Plan Year? ....................................................... .............................17 Q -28. How do 1 receive reimbursement under the DCSA? ................................. .............................17 Q -29. What are "Eligible Day Care Expenses" ................................................... .............................18 Q -30. When must the expenses be incurred in order to receive reimbursement? . .............................19 Q -31. What if the Eligible Day Care Expenses I incur during the Plan Year are less than the annual PLAN INFORMATION APPENDIX ........................................................ ..............................1 INTRODUCTION TO THE FLEXIBLE SPENDING ACCOUNT PLAN SUMMARY PLAN DESCRIPTION................................................................................................... ..............................1 PART I: GENERAL INFORMATION ABOUT THE PLAN ................................. ..............................2 Q -1. amount I have allocated to the DCSA? ....................................................... .............................19 2 Q -32 What happens if a claim for benefits under the DCSA is denied? .............. .............................20 2 Q -33. What happens to unclaimed DCSA reimbursements? ................................ .............................20 2 Q -34. Will I be taxed on the DCSA reimbursement I receive? ............................. ............................:20 2 Q -35. If I participate in the DCSA, will I still be able to claim the household and dependent care 3 Q -6. credit on my federal income tax return? ..................................................... .............................20 3 Q -36. What is the household and dependent care credit? ..................................... .............................20 4 PLAN INFORMATION APPENDIX ........................................................ ..............................1 INTRODUCTION TO THE FLEXIBLE SPENDING ACCOUNT PLAN SUMMARY PLAN DESCRIPTION................................................................................................... ..............................1 PART I: GENERAL INFORMATION ABOUT THE PLAN ................................. ..............................2 Q -1. What is the purpose of the Plan? ............................................................................. ............................... 2 Q -2. Who can participate in the Pl an? ............................................................................. ............................... 2 Q -3. When does my participation in the Plan end? ......................................................... ............................... 2 Q -4. How do I become a Participant? ............................................................................. ............................... 2 Q -5. What are the enrollment periods under the Plan? .................................................... ............................... 3 Q -6. How are the contributions to the spending accounts made under the Plan? ............ ............................... 3 Q -7. Can I ever change my election during the Plan Year? ............................................ ............................... 4 Q -8. How long will the Plan remain in effect? ................................................................ ............................... 7 Q -9. What effect will Plan participation have on Social Security and other benefits? .... ............................... 8 PART II. HCSA BENEFITS ................................................................................ ..............................9 Q-10. What is the "Health Care Spending Account"? ....................................................... ............................... 9 Q -11. What is the maximum annual reimbursement amount that I may elect under the HCSA ? .................... 9 Q -12. How are amounts allocated to the HCSA withheld from my pay? ......................... ............................... 9 Q -13. What amounts will be available for reimbursement of Eligible Medical Expenses at any particular time duringthe Plan Year? .............................................................................................. ............................... 9 Q -14. How do I receive reimbursement under the HCSA? ............................................... ............................... 9 Q-15. What is an "Eligible Medical Expense "? .............................................................. ............................... 10 Q -16. When must the expenses be incurred in order to receive reimbursement? ........... ............................... 11 Q -17. What if the Eligible Medical Expenses I incur during the Plan Year are less than the annual amount I haveallocated to the HCSA? ................................................................................ ............................... 11 Q -18. What happens if a claim for benefits under the HCSA is denied? ........................ ............................... 1 1 Q -19. What happens to unclaimed HCSA reimbursements? .......................................... ............................... 12 Q -20. What is COBRA continuation coverage? .............................................................. ............................... 12 Q -21. Will my health information be kept confidential? ................................................. ............................... 14 Q -22. How does this HCSA interact with a Health Reimbursement Arrangement sponsored by my Employer? 14 Q -23. How long will the HCSA remain in effect? .......................................................... ............................... 14 PART III DCSA BENEFITS ................................................................................ .............................17 Q -24. What is the "Dependent Care Spending Account "? .............................................. ............................... 17 Q -25. What is the maximum reimbursement amount that I may elect under the DCSA ? .............................. 17 ii Q -26. How are amounts allocated to the DCSA withheld from my pay? ....................... ............................... 17 Q -27. What amounts will be available for reimbursement of Eligible Dad• Care Expenses at any particular time PLAN INFORMATION APPENDIX ............................................................... ............................... PI -1 iii duringthe Plan Year? ........................................................................................... ............................... 17 Q -28. How do I receive reimbursement under the DCSA? ........................................... ............................... 17 Q -29. What are 'Eligible Day Care Expenses "? ........................................................... ............................... 18 Q -30. When must the expenses be incurred in order to receive reimbursement? ........... ............................... 19 Q -31. What if the Eligible Day Care Expenses I incur during the Play. Year are less than the annual amount I have allocated to the DCSA` ......................... ............................... ..................... ............................... 19 Q -32 What happens if a claim for oenefits under the DCSA is denied". . ......................................... .......... 19 Q -33. What happens to unclaimed DCSA reimbursements? ........................................ ............................... 19 Q -34. Will I be taxed on the DCSA reimbursement 1 receive? ......... - .......................... ............................... 19 Q -35. If I participate in the DCSA. will I still be able to claim the household and dependent care credit on my federal income tax return? ................................................................................... ............................... 20 Q -36. What is the household and dependent care credit? ............................................... ............................... 20 PLAN INFORMATION APPENDIX ............................................................... ............................... PI -1 iii Introduction to the Flexible Spending Account Plan Summary Plan Description East Valley Water District (the "Employer ") is pleased to sponsor an employee benefit program known as The Flexible Spending Account Plan (the "Plan "). There are two types of flexible spending accounts provided under the Plan: a Health Care Spending Account ( "HCSA ") and a Dependent Care Spending Account ( "DCSA "). The Plan is called a "flexible" spending account plan because you determine the amount of unreimbursed eligible medical and/or dependent day care expenses that you (and where applicable, your eligible family members) will likely incur during the Plan Year and you elect to have the Employer withhold equal amounts from your pay (subject to Plan limitations) on a pre- tax basis for reimbursement of such expenses. Any amounts that you elect to have withheld for reimbursement of eligible medical expenses will be credited to the HCSA and any amounts that you elect to have withheld for reimbursement of dependent day care expenses will be credited to the DCSA. You must elect wisely because any amounts allocated to a flexible spending account that are not used for expenses incurred during the Plan Year will generally be forfeited. The Plan is beneficial to you because amounts that you elect to have withheld from your pay for reimbursement of eligible medical and/or dependent day care expenses are withheld before any federal income and employment taxes (e.g., FICA and FUTA) are applied, and in most cases, before any applicable state taxes are applied. If you have unreimbursed medical and/or dependent day care expenses, participation in this Plan will actually increase your take home pay over what your net take home would be if you paid for such expenses with after -tax dollars. The SPD is divided into four parts: Part I- General Information about the Plan; Part II -HCSA Benefits; Part III -DCSA Benefits; and Part IV -the Plan Information Appendix. The first three parts of the SPD are in Question and Answer format. We encourage you to read the entire SPD, but if you have questions about your rights and obligations under the Plan, please refer to the Table of Contents above for the Question that most resembles your question. Information relating to the Plan that is specific to your Employer is described in the Plan Information Appendix attached to this SPD. You will be referred to the Plan Information Appendix throughout the SPD. In addition, terms that are capitalized throughout are terms that are specifically defined in the SPD or the Plan document. This SPD and the Plan Information Appendix attached hereto (collectively, the "SPD ") describe the basic features of the Plan, how it operates, and how you can get the maximum advantage from it. The Plan is also established pursuant to a Plan document into which this SPD has been incorporated. If there is a conflict between the official Plan document and the SPD, the SPD will govern. The effective date of this SPD is set forth in the attached Plan Information Appendix. If you have any questions regarding the terms of the Plan, the HCSA and/or the DCSA, contact the Plan Administrator identified in the Plan Information Appendix. The Plan Administrator's name, address and telephone number appear in the Plan Information Appendix attached to this SPD. Other important information has been provided in the Plan Information Appendix attached to this SPD. Flexible Spending Account Plan Questions and Answers Part I: General Information about the Plan Q -1. What is the purpose of the Plan? The purpose of the Plan is to allow eligible employees tc usr pre -tax dollars ( "Pre -tax Contributions ") to pay for certain otherwise unreimbursed mecical and/or dependent day care expenses. Q -2. Who can participate in the Plan? Each employee of the Employer who satisfies the Plan's "Eligibility Requirements" will be eligible to begin participating in this Plan on the applicable "Eligibility Date." The Eligibility Requirements and the Eligibility Date are identified in the Plar Information Appendix. Those employees who actually participate in the Plan are called "Participants " Q -3. When does my participation in the Plan end? You continue to participate in the Plan until the earlier of the date that (i) you elect not to participate in this Plan; (ii) you no longer satisfy the Eligibility Recui-ements (e.g., you terminate employment); or (iii) the Plan is terminated or amended to exclude you or the class of employees of which you are a member. If you cease to satisfy the Eligibility Requirements during the Plar Year but become eligible for the Plan again during the same Plan Year and more than 30 days after ceasing to satisfy the Eligibility Requirements, you may make new elections under the Pear. If you cease to satisfy the Eligibility Requirements during the Plan Year but become eligible for the Plan again during the Plan Year and within 30 days or less after ceasing to satisfy the Eligibility Requirements, your prior elections will be reinstated and will remain in effect for the - emainder of the Plan Year. Q -4. How do I become a Participant? You become a Participant in the Plan by (i) completing the designated election form on which you indicate the amount of your pay you wish to have withheld and then allocated to the HCSA and/or the DCSA and (ii) timely submitting the election form tc -he entity /person designated on the election form during one of the enrollment periods described nelow. You will be provided with an election form (or you will be provided with access to ar. election form) on or before the beginning of the applicable enrollment period. IMPORTANT: If you want tax -free reimbursement of unreimbursed medical expenses, you must affirmatively elect to participate in the HCSA. If you want tax -free reimbursement of dependent day care expenses, you must affirmatively elect to participate in the DCSA. You can choose either one or both. You cannot become a Participant in this Plan prior to the date you complete and submit your election form. 2 You may be required to complete an election form via telephone or voice response technology, electronic communication, or any other method prescribed by the Plan Administrator. In order to utilize a telephone system or other electronic means, you may be required to sign an authorization form authorizing issuance of a personal identification number ( "PIN') and allowing such PIN to serve as your electronic signature when utilizing the telephone system or electronic means. The Plan Administrator and all parties involved with Plan administration will be entitled to rely on your directions through use of the PIN as if such directions were issued in writing and signed by you. Q -5. What are the enrollment periods under the Plan? When you are first hired, you must enroll during the "Initial Enrollment Period" if you want to participate. The enrollment material provided by the Employer (or the Third Party Administrator identified in the Plan Information Appendix) will identify the beginning and end dates of the Initial Enrollment Period. If you make an election during the Initial Enrollment Period, your participation in the spending account(s) that you elect will begin on the later of your Eligibility Date or the date that your election is received and processed by the entity processing your election form. The election that you make during the Initial Enrollment Period is effective for the remainder of the Plan Year and generally cannot be revoked during the Plan Year unless you experience a specified event that will allow a mid -year election change (see below for more details on mid -year election changes). If you do not make an affirmative election to participate in either of the spending accounts during the Initial Enrollment Period, you will be deemed to have elected not to participate in this Plan for the remainder of the Plan Year unless you experience an event that allows you to change that election during the Plan Year. The Plan also has an "Annual Enrollment Period" during which you may enroll (if you did not enroll during the Initial Election Period), continue your previous election or change your previous elections for the next Plan Year. You will be notified each year of the beginning and end dates of the Annual Enrollment Period. You must make an affirmative election to participate, change your election, or continue your current election for the next Plan Year. The election that you make during the Annual Enrollment Period is effective the first day of the following Plan Year and is irrevocable for the entire Plan Year unless you have experienced an event that allows a mid -year election change. If you are a current Participant in the Plan and you fail to complete and submit an election form during the Annual Enrollment Period, you will be deemed to have elected not to participate during the next Plan Year. The Plan Year is generally a 12 -month period (except during the initial or last Plan Year of the Plan). The beginning and ending dates of the Plan Year are described in the Plan Information Appendix. Q -6. How are the contributions to the spending accounts made under the Plan? When you become a Participant in the Plan, your share of the contributions for the elected spending accounts will be paid with Pre -tax Contributions that you elected on the election form. Pre -tax Contributions are amounts withheld from your gross income before any applicable federal taxes (and in most cases, state taxes) have been deducted. In addition, all or a portion of the cost of the spending accounts may, in the Employer's discretion, be paid with contributions made by K the Employer on behalf of each Participant (these are called "Nonelective Contributions "). The amount of Nonelective Contribution that is applied towards one or both of the cost of the spending accounts for each Participant is subject to the sole discretinn of the Employer and it may be adjusted upward or downward in the Employer's sole discretion. The Nonelective Contribution amount, if any, will be calculated for each Plan Year in a uniform and nondiscriminatory manner and may be based upon your dependent status, commencement or termination date of your employment during the Plan Year, and such other factors that the employer deems relevant. In n2 event will any Nonelective Cotnribution be disbursed to you in the form of additional, taxable compensation except as otherwise provided in the enrollment material. To the extent set forth in the enrollment material, the Employer may provide you with Nonelective Contributions and then allow you to allocate the Nonelective Contributions towards one or both of the spending accounts (subject to restrictions described in the enrollment material). Q -7. Can I ever change my election during the Plan Year? Generally, you cannot change your election to participate in the Plan or vary the Pre -tax Contribution that you have elected to allocate to the HCSA and'or the DCSA. That being said, your election to participate in the Plan will automatically temmmate if you cease to satisfy the applicable Eligibility Requirements. Otherwise, you may change your Pre -tax Contribution elections only during the Annual Enrollment Period, and then, only for the coming Plan Year. There is an important exception to this general rule that you cannot revoke your elections during the Plan Year: You may change or revoke your elections during the Plan Year if you submit a written request (or where applicable, an electronic request) for an election change with the Plan Administrator (or the Third Party Administrator identified in the Plan Information Appendix) within 30 days of experiencing one of the following events. Note that not all of the events apply to HCSA elections. 1. Change in Status. If one or more of the following "Changes in Status" occur, you may revoke your old election and make a new election, provided that Both the revocation and new election are on account of and correspond with the Change in Status (as described below). Those occurrences that qualify as a Change in Status include the events described below, as well as any other events that the Plan Administrator determines are permitted under subsequent IRS regulations: • A change in your legal marital status (such as marriage, legal separation, annulment, divorce or death of your spouse); • A change in the number of your tax dependents (sach as the birth of a child, adoption or placement for adoption of a dependent. nr death of a dependent); • Any of the following events that change the employment status of you, your spouse, or your dependent that affect benefit eligibility under a cafeteria plan (including this Plan and the plan of another employer) or other employee benefit plan of an employer of you, your spouse, or v ->u dependents. Such events include any of the following changes in employment status: termination or commencement of employment, a strike or lockout, a commencement of or return from an unpaid leave of absence, a change in worksite, switching from salaried to hourly -paid, union to non - union, or pan -time to full -time; incurring a reduction or met ease in hours of employment; or any other similar change which makes the individual become (or cease to be) e'igib e for a particular employee benefit; M • An event that causes your dependent to satisfy or cease to satisfy an eligibility requirement for a particular benefit (such as attaining a specified age, or ceasing to be a student; and • A change in your, your spouse's or your dependent's place of residence. The election change must be on account of and correspond with the Change in Status event as determined by the Plan Administrator. With the exception of an election change to the HCSA resulting from birth, placement for adoption or adoption, all election changes are prospective. As a general rule, a desired election change will be found to be consistent with a Change in Status event if the event affects eligibility for coverage under the Plan. A Change in Status affects eligibility for coverage if it results in an increase or decrease in the number of dependents who may benefit under the Plan. In addition, you must also satisfy the following specific requirements in order to alter your election based on that Change in Status: • Gain of Coverage Eligibility under Another Employer's Plan. For a Change in Status in which you, your spouse, or your dependent gain eligibility for coverage under another employer's cafeteria plan (or benefit plan) as a result of a change in your marital status or a change in your, your spouse's, or your dependent's employment status, your election to cease or decrease coverage for that individual under the Plan would correspond with that Change in Status only if coverage for that individual becomes effective or is increased under the other employer's plan. You may be required to provide proof that coverage will become effective. • Dependent Care Reimbursement Plan Benefits. With respect to the Dependent Care Reimbursement Plan benefit, you may change or terminate your election only if (1) such change or termination is made on account of and corresponds with a Change in Status that affects eligibility for coverage under the Plan; or (2) your election change is on account of and corresponds with a Change in Status that affects the eligibility of dependent care assistance expenses for the available tax exclusion. Example: employee Mike is married to Sharon, and they have a 12 year -old daughter. The employer's plan offers a dependent care expense reimbursement program as part of its cafeteria plan. Mike elects to reduce his salary by $2,000 during a plan year to fund dependent care coverage for his daughter. In the middle of the plan year when the daughter turns 13 years old, however, she is no longer eligible to participate in the dependent care program. This event constitutes a Change in Status. Mike's election to cancel coverage under the dependent care program would be consistent with this Change in Status. 2. Special Enrollment Rights (NOTE: This applies only to HCSA elections and only to the extent that the HCSA is not an "excepted benefit" as defined by the Health Insurance Portability and Accountability Act of 1996). If you, your spouse and/or a dependent are entitled to special enrollment rights under HCSA as set forth in the Health Insurance Portability and Accountability Act of 1996 ( "HIPAA "), you may change your election to correspond with the special enrollment right. Thus, for example, if you declined enrollment for yourself or your eligible dependents because of other medical coverage and eligibility for such coverage is subsequently lost due to certain reasons (e.g., due to legal separation, divorce, death, termination of employment, reduction in hours, or exhaustion of COBRA period), you may be 5 able to elect HCSA coverage £or yourself and your eligible dependents who lost such coverage. Furthermore, if you have a new dependent as a result of marriage. birth, adoption, or placement for adoption, you may also be able to enroll yourself, your spouse. and your newly acquired dependents, provided that you request enrollment within the 30 -dav election change period. An election change that corresponds with a special enrollment must be prospective, unless the special enrollment is attributable to the birth, adoption, or placement for adoption of a child, which may be retroactive up to 30 days. 3. Certain Judgments, Decrees and Orders. If a judgment, decree or order from a divorce, separation, annulment or custody change requires your dependent child (including a foster child who is your tax dependent) to be covered under t it Plan, you may change your election to provide coverage for the dependent child identified in the order. If the order requires that another individual (such as your former spouse) cover th:- dependent child, and such coverage is actually provided. you may change your election a revoke coverage for the dependent child. 4. Entitlement to Medicare or Medicaid. If you. your spouse, or a dependent becomes entitled to Medicare or Medicaid, you may cancel that person's HCSA coverage. Similarly, if you, your spouse. or a dependent that has been entitled to Medicare or Medicaid loses eligibility for such, you may, subject to the terms of the underlying plan, elect to begin or increase that person's HCSA coverage. 5. Change in Cost (applies only to DCSA elections). V you are notified that the cost of your DCSA coverage under the Plan has significantly increased or decreased or will significantly increase or decrease during the Plan Year, you may make certain prospective election changes. If the cost significantly increases, you may chocse either to make an increase in your contributions, revoke your election and choose another day care provider, or drop coverage altogether if you are unable to find another provider. If the cost significantly decreases, you may revoke your election and make a new election to correspond w th the decrease in cost. For insignificant increases or decreases in the cost of DCSA coverage, however, your Pre -tax Contributions will change automatically to reflect the minor change in cost. The Plan Administrator will have final authority to determine whether the requirements of this section are met. 6. Change in Coverage (applies only to DCSA elections). If your coverage under the DCSA is significantly curtailed. you may revoke your election and either choose another day care provider or drop coverage altogether. Further, if you change day care providers, you may revise your elections to correspond to the new provider. Also, you may make an election change that is on account of and corresponds w ith a change made under another employer plan (including a plan of the Employer or another employer), so long as: (i) the other employer plan permits its participants to make an election change permitted under the IRS regulations; or (ii) the plan year for this Plan is different from the plan year of the other employer plan. Additionally, your election(s) may be modified downward during the plan year if you are a Key Employee or Highly Compensated Individual (as defined by .hc Internal Revenue Code) if necessary to prevent the Plan from becoming discriminatory A:thin the meaning of the federal income tax law. P 7. Approved Leave of Absence. If you take an approved leave of absence, your elections are subject to the following terms (depending, in part, on the type of leave you take): If you go on a qualifying unpaid leave under the Family and Medical Leave Act of 1993 (FMLA), to the extent required by the FMLA, the Employer will continue to maintain your HCSA coverage on the same terms and conditions as though you were still active. Your Employer may elect to continue all coverage for Participants while they are on paid leave (provided Participants on non -FMLA paid leave are required to continue coverage). If so, you will pay your share of the contributions with Pre- tax Contributions withheld from pay you receive while on leave. In the event of unpaid FMLA leave (or paid leave where coverage is not required to be continued), if you opt to continue your HCSA, you may pay your share of the contribution with after -tax dollars while on leave, or you may be given the option to pre -pay all or a portion of your share of the contribution for the expected duration of the leave (not to exceed the end of the Plan Year) with Pre- tax Contributions from your pre -leave compensation by making a special election to that effect before the date such compensation would normally be made available to you, or by other arrangements agreed upon between you and the Plan Administrator (for example, the Plan Administrator may fund coverage during the leave and withhold amounts from your compensation upon your return from leave). The payment options provided by the Employer will be established in accordance with Code Section 125, FMLA and the Employer's internal policies and procedures regarding leaves of absence. Alternatively, the Employer may require all Participants to continue coverage during the leave. If so, you may elect to discontinue your share of the required contributions until you return from leave. Upon return from leave, you will be required to repay the contribution not paid during the leave in a manner agreed upon with the Plan Administrator. If your HCSA coverage ceases while on FMLA leave (e.g., for non - payment of required contributions), you will be permitted to re -enter the HCSA upon return from such leave on the same basis as you were participating in the HCSA prior to the leave, or as otherwise required by the FMLA. Your HCSA coverage may be automatically reinstated provided that coverage for employees on non -FMLA leave is automatically reinstated upon return from leave. The Employer may, on a uniform and consistent basis, continue your HCSA coverage for the duration of the leave following your failure to pay the required contribution. Upon return from leave, you will be required to repay the contribution in a manner agreed upon by you and Employer. If you are commencing or returning from unpaid FMLA leave, your DCSA election under this Plan shall be treated in the same manner that elections for non - health plans are treated with respect to Participants commencing and returning from unpaid non -FMLA leave. Q -8. How long will the Plan remain in effect? Although the Employer expects to maintain the Plan indefinitely, it has the right to modify or terminate the program at any time for any reason. It is also possible that future changes in state or federal tax laws may require that the Plan be amended accordingly. Q -9. What effect will Plan participation have on Social Security and other benefits? Plan participation will reduce the amount of your taxable compensation. Accordingly, there could be a decrease in your Social Security benefits and/or other benefits (e.g., pension, disability and life insurance) that are based on taxable compensation. Flexible Spending Account Plan Part 11. HCSA Benefits The following Questions and Answers relate to the HCSA benefits. This section only applies to the extent that you have elected to allocate Pre -tax Contributions to the HCSA. Q -10. What is the "Health Care Spending Account "? The Health Care Spending Account ( "HCSA ") is the portion of the Plan that provides for reimbursement of Eligible Medical Expenses incurred by the Participant and his/her Eligible Dependents. If you elect benefits under this portion of the Plan, a non - interest bearing bookkeeping account will be set up to keep a record of Pre -tax Contributions (and where applicable, any non - elective Employer contributions) allocated to the account and the reimbursements for Eligible Medical Expenses to which you are entitled during the Plan Year. No actual account is established; it is merely a bookkeeping account. Q -11. What is the maximum annual reimbursement amount that I may elect under the HCSA? You may choose any reimbursement amount you desire subject to the maximum annual HCSA Reimbursement Amount (and HCSA Minimum Reimbursement Amount) described in the Plan Information Appendix. Any change in your election affecting annual contributions to the HCSA will change the maximum available reimbursement for the remainder of the Plan Year. Such maximum available reimbursements will be determined on a prospective basis only by a method determined by the Plan Administrator that is in accordance with applicable law. The Plan Administrator (or its designated claims administrator) will notify you of the applicable method when you make your election change. Q -12. How are amounts allocated to the HCSA withheld from my pay? When you enroll online, you specify the amount of reimbursement for Eligible Medical Expenses you wish to pay for with Pre -tax Contributions. Thereafter, an equal pro -rata portion of the annual contribution, reduced by any non - elective Employer Contributions (if any) allocated to your HCSA, will be withheld from each paycheck by your Employer. Q -13. What amounts will be available for reimbursement of Eligible Medical Expenses at any particular time during the Plan Year? The full annual amount of reimbursement you have elected under the HCSA (reduced by prior reimbursements made during the Plan Year) will be available at any time during the Plan Year without regard to how much you have contributed to the HCSA. Q -14. How do I receive reimbursement under the HCSA? When you incur an Eligible Medical Expense, you file a claim with the Plan's Third Party Administrator by completing and submitting a Request for Reimbursement Form. You may obtain a Request for Reimbursement Form from the Plan Administrator or the Third Party Administrator. You must include with your Request for Reimbursement Form a written 0 statement from the service pro%-ider (e.g., a receipt, explanation of henefits or "EOB ") associated with each expense that indicates the following: • The nature of the expense (e.g., what type of service or treatment was provided). If the expense is for an over -the- counter drug, the wr tten statement must indicate the name of the drug: • The date the expense was incurred; and • The amount of the expense. You may be required to provide additional substantiation to the extent determined necessary to support your claim. The Third Party Administrator will process the claim once it receives the Request for Reimbursement Fornn from you. Reimbursement for expenses that are determined to be Eligible Medical Expenses will be made as soon as possib e afer receiving the claim and processing it. If the expense is determined to not be an "Eligible Medical Expense" you will receive notification of this determination. You must submit all claims for reimbursement for Eligible Medical Expenses prior to the end of the Run -out Period. The Run -out Period is described in the Plan Information Appendix. NOTE: If your health plan administrator or insurance carrier automati:,ally submits an EOB to the Third Party Administrator for processing, you may not have to provide any additional substantiation or certification. You may also be able to use an electronic payment card to pay expenses at the time they are incurred. If the Employer provides an electronic payment card, the terms of the electronic payment card will be set forth in the Plan Information Appendix. Q -15. What is an "Eligible Medical Expense "? An "Eligible Medical Expense" is an expense that has been incur Ted by you and/or your Eligible Dependents that satisfies the following conditions: • The expense is for "medical care" as defined by Code Section 213(d). Whether an expense is for "medical care" is within the sole discretion of the Plan Administrator; and • The expense has not been reimbursed by any other source and you will not seek reimbursement for the expense from any other source. An "Eligible Dependent" is your legal spouse (in accordance with federal law) and any other individual who is a "dependent" as defined in Code Section 105(1•) (i.e., a dependent who is eligible to receive tax -free health coverage under the Code). Coverage for an individual covered as an Eligible Dependent under the HCSA ends on the date that the rtdividual ceases to meet the requirements to be an Eligible Dependent. The Code generally defines "medical care" as any amounts incurred .o diagnose, treat or prevent a specific medical condition or for purposes of affecting any firnotion or structure of the body. This includes, but is not limited to, both prescription and over -the- counter drugs (and over -the- counter products and devices). Not every health related expense you or your eligible dependents incur constitutes an expense for "medical care." For example, an expense is not for "medical care," as that term is defined by the Code, if it is merely for the hereficial health of you and/or your eligible dependents (e.g., vitamins or nutritional supplemews hat are not taken to treat a 10 specific medical condition) or for cosmetic purposes, unless necessary to correct a deformity arising from illness, injury, or birth defect. You may, in the discretion of the Third Party Administrator/Plan Administrator, be required to provide additional documentation from a health care provider showing that you have a medical condition and/or the particular item is necessary to treat a medical condition. Also, "stockpiling" of over - the - counter drugs and/or items is not permitted and expenses resulting from stockpiling are not reimbursable. There must be a reasonable expectation that such drugs or items could be used during the Plan Year (as determined by the Plan Administrator). Expenses for cosmetic purposes are also not reimbursable unless they are necessary to correct an abnormality caused by illness, injury or birth defect. In addition, certain expenses that might otherwise constitute "medical care" as defined by the Code are not reimbursable under any HCSA (per IRS regulations): • Health insurance premiums; • Expenses incurred for qualified long term care services; and • Any other expenses that are specifically excluded by the Employer as set forth in the Plan Information Appendix and/or enrollment material. Q -16. When must the expenses be incurred in order to receive reimbursement? Eligible Medical Expenses must be incurred during the Plan Year and while a Participant. An expense is incurred when the service or treatment giving rise to the expense has been performed and not in advance of the services. You may not be reimbursed for any expenses arising before the HCSA becomes effective, before your HCSA election becomes effective, or after a separation from service (except for expenses incurred during an applicable COBRA continuation period). If the Employer has adopted a grace period, you may also be able to use amounts allocated to the HCSA that are unused at the end of the Plan Year for expenses incurred during the grace period following the end of the Plan Year. The terms of the "grace period," if adopted, will be described in the Plan Information Appendix. Q -17. What if the Eligible Medical Expenses I incur during the Plan Year are less than the annual amount I have allocated to the HCSA? You will not be entitled to receive any direct or indirect payment of any amount that represents the difference between the actual Eligible Medical Expenses you have incurred and the annual reimbursement amount that you have elected. Except as otherwise set forth in the Plan Information Appendix, any amount allocated to the HCSA will be forfeited by the Participant if it has not been applied by the end of the Run -out Period to reimburse expenses incurred during the Plan Year. The Run -out Period is described in the Plan Information Appendix. Amounts so forfeited shall be used to offset administrative expenses and future costs, and/or applied in a manner that is consistent with applicable rules and regulations. If the Employer has adopted a grace period following the end of the Plan Year, amounts allocated to the HCSA that are unused at the end of the Plan Year may also be used to reimburse expenses incurred during the grace period following the end of the Plan Year. Q -18. What happens if a claim for benefits under the HCSA is denied? 11 If you are denied a benefit under the HCSA, you should proceed in accordance with the claims and appeal procedures set forth in the Plan Information Appendix Q -19. What happens to unclaimed HCSA reimbursements? Any reimbursements under the HCSA that are unclaimed (e.g., encashed benefit checks) by the close of the Plan Year following the Plan Year in which the F ligible Medical Expense was incurred shall be forfeited. Q -20. What is COBRA continuation coverage? Federal law requires most employers sponsoring group health plans to offer employees and their families the opportunity for a temporary extension of health care coverage (called "continuation coverage ") at group rates in certain instances where coverage under the plans would otherwise end. These rules apply to the HCSA, unless the Employer is a small - employer within the meaning of the applicable regulations. The Plan Administrator can tell you whether the Employer is a small employer (and thus not subject to these rules). When Coverage May Be Cont Hued If you are a Participant in the HCSA, then you generally have a r ght to choose continuation coverage under the HCSA if you lose your coverage because of: • A reduction in your hours of employment; or • A voluntary or involuntary termination of your employment (for reasons other than gross misconduct). If you are the spouse of a Participant, then you generally have the right to choose continuation coverage for yourself if you lose coverage for any of the following casons: • The death of the Participant; • A voluntary or involuntary termination of the Participant's employment (for reasons other than gross misconduct) or reduction in your spouse's hours of employment; or • The divorce or legal separation from the Participant. In the case of a dependent child of a Participant, he or she has the -fight to choose continuation coverage if coverage is lost for any of the following reasons: • The death of the Participant; • A voluntary or involuntary termination of the Participant's employment (for reasons other than gross misconduct; or reduction in the Participant's hours of employment; • His or her parents' divorce or legal separation; or • He or she ceases to be a dependent child. Those events that entitle you to elect coverage are called "Qualifying Events." Those covered individuals who are entitled to continue coverage under (--t)BRA are called "Qualified Beneficiaries." A child who is born to, or placed for adoptic:- w in, the Participant during a period of continuation coverage is also entitled to continuation coverage under COBRA as a Qualified Beneficiary. 12 NOTE: Notwithstanding the preceding provisions, you generally do not have the right to elect COBRA continuation coverage if the cost of COBRA continuation coverage for the remainder of the Plan Year equals or exceeds the amount of reimbursement you have available for the remainder of the Plan Year. You will be notified of your particular right to elect COBRA continuation coverage. Tvne of Continuation Coveraee If you choose continuation coverage, you may continue the level of coverage you had in effect immediately preceding the Qualifying Event. However, if Plan benefits are modified for similarly situated active employees, then they will be modified for you and other Qualified Beneficiaries as well. You will be eligible to make a change in your benefit election with respect to the Plan upon the occurrence of any event that permits a similarly situated active employee to make a benefit election change during a Plan Year. If you do not choose continuation coverage, your coverage under the HCSA will end with the date you would otherwise lose coverage. Notice Requirements You or your covered dependents (including your spouse) must notify the COBRA Administrator identified in the Plan Information Appendix in writing of a divorce, legal separation, or a child losing dependent status under the Plan within 60 days of the later of the date of the event or the date on which coverage is lost under the Plan because of the event. When the COBRA Administrator is notified that one of these events has occurred, the COBRA Administrator will in turn notify you that you have the right to choose continuation coverage by sending you the appropriate election forms. Notice to an employee's spouse is treated as notice to any covered dependents who reside with the spouse. An employee or covered dependent is responsible for notifying the COBRA Administrator if he or she becomes covered under another group health plan or entitled to Medicare. Election Procedures and Deadlines Each Qualified Beneficiary is entitled to make a separate election for continuation coverage under the Plan if they are not otherwise covered as a result of another Qualified Beneficiary's election. In order to elect continuation coverage, you must complete the Election Form(s) within 60 days from the date you would lose coverage as a result of a Qualifying Event or the date you are sent notice of your right to elect continuation coverage, whichever is later and send it to the COBRA Administrator identified in the Plan Information Appendix of this SPD. Failure to return the election form within the 60 -day period will be considered a waiver of your continuation coverage rights. Cost You will have to pay the entire cost of your continuation coverage. The cost of your continuation coverage will not exceed 102% of the applicable premium for the period of continuation coverage. The first premium payment after electing continuation coverage will be due 45 days after making your election. Subsequent premiums must be paid within a 30 -day grace period following the due date. Failure to pay premiums within this time period will result in automatic termination of your continuation coverage. Claims incurred during any period will not be paid 13 until your premium payment is received for that period. If you timely elect continuation coverage and pay the applicable premium. however, then continuation coverage will relate back to the first day on which you would have lost regular coverage. When Continuation Coverage Ends You may be able to continue coverage under the HCSA until the end of the Plan Year in which the Qualifying Event occurs. However, continuation coverage may end earlier for any of the following reasons on the dates indicated: • The first day of the month following the month for which you made a timely and complete premium payment (Note if your payment is insuf icient by the lesser of 10% of the required COBRA premium, or $50, you will be given 30 days to cure the shortfall); • The date that you first become covered under another grow) health plan under which you are not subject to a pre- existing condition exclusion litmtation after you have elected COBRA continuation coverage; • The date that you first become entitled to Medicare afer you have elected COBRA continuation coverage; or • The date the Employer no longer provides group health coverage to any of its employees. Q -21. Will my health information be kept confidential? Under the Health Insurance Portability and Accountability Act of 1996 ( "HIPAA ") group health plans such as the HCSA and the third party service providers are required to take steps to ensure that certain "protected health information" is kept confidential. You may receive a separate privacy notice that outlines the Employer's health privacy policies. Q -22. How does this HCSA interact with a Health Reimbursement Arrangement sponsored by my Employer? Typically, a HCSA is the payer of last resort. This means the HCSA cannot reimburse expenses that are reimbursable from any other source. However, if you are also participating in a Health Reimbursement Arrangement or "HRA" that covers expenses covered by this HCSA, the employer may require the HCSA pay first, rather than the HRA. If the HCSA pays first, you must exhaust your HCSA balance before using funds allocated to your HRA. The Plan Information Appendix will indicate whether the HCSA or HRA must nay first. Q -23. How long will the HCSA remain in effect? Although the Employer expects to maintain the HCSA indefinite]}. it has the right to modify or terminate the program at any time and for any reason. Other Important HCSA Information ERISA Rights The HCSA Plan is an ERISA welfare benefit plan. As a Participam in an ERISA- covered benefit, you are entitled to certain rights and protections under the Employee Retirement Income Security Act ( "ERISA "). ERISA provides that all Plan Participants shall be entitled to: 14 • Receive information about your Plan and benefits. • Examine, without charge, at the Plan Administrator's office and at other specified locations, such as work -sites and union halls, all documents governing the Plan, including insurance contracts, collective bargaining agreements and a copy of the latest annual report (Form 5500 series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration. • Obtain, upon written request to the Plan Administrator, copies of all documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 series) and updated SPD. The Plan Administrator may make a reasonable charge for the copies. • Receive a summary of the Plan's annual financial report (if any). The Plan Administrator is required by law to furnish each Participant with a copy of this summary annual report. • Continue Group Health Plan Coverage. You may continue health care coverage for yourself, spouse or dependent children if there is a loss of coverage under the Plan as a result of a Qualifying Event. You or your eligible dependents will have to pay for such coverage. You should review e COBRA section of this HCSA appendix for more information concerning your COBRA continuation coverage rights. (To the extent the HCSA is subject to HIPAA's portability rules) You may be eligible for a reduction or elimination of exclusionary periods of coverage for pre- existing conditions under your group health plan if you move to another plan and you have creditable coverage from this Plan. You will be provided a certificate of creditable coverage, free of charge, from the HCSA when you lose coverage under the Plan, when you become entitled to elect COBRA continuation coverage, when your COBRA continuation coverage ceases, if you request it before losing coverage, or if you request it up to 24 months after losing coverage. Without evidence of creditable coverage, you may be subject to a pre- existing condition exclusion for 12 months (18 months for late enrollees) after your enrollment date in your coverage in another plan. Prudent Actions by Plan Fiduciaries In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of the Plan Participants and beneficiaries. No one, including your employer, your union, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit from the Plan, or from exercising your rights under ERISA. Enforce Your Rights If your claim for a welfare benefit under an ERISA- covered plan is denied in whole or in part, you must receive a written explanation of the reason for the denial. You have the right to have the Plan review and reconsider your claim. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request materials from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits that is denied or ignored in whole or in part, you may file suit in a state or federal court. In addition, if you disagree with the Plan's decision or lack thereof concerning the qualified status of a domestic relations order or a medical child 15 support order, you may file suit in federal court. If it should happen that Plan fiduciaries misuse the Plan's money, or if you are discriminated against for assert:iig your rights, you may seek assistance from the U.S. Department of Labor, or you may file sin, it a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose. the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. Assistance with Your Questions If you have any questions about the Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance obtaining documents from the Plan Administrator, you should contact the nearest office of the U.S. Department of Labor, Employee Benefits Security Admini�lration ( "EBSA ") listed in your telephone directory, or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constinvion Ave., N.W., Washington, D.C., 20210. You may also obtain certain publications about _vow- rights and responsibilities under ERISA by calling the publications hotline of the employee Benefits Security Administration. Newborns' and Mothers' Health Protection Act of 1996 Group health plans and health insurance issuers generally may not. under federal law, restrict benefits for any hospital length of stay in connection with childbi-th for the mother or newborn child to less than 48 hours following a vaginal delivery, or less than 96 hours following a cesarean section. However, feceral law generally does not prohibit the mother's or newborn's attending provider, after consulting with the mother, from discharging the mother or her newborn earlier than 48 hours (or 96 hours, as applicable). In any case, plans and issuers may not, under federal law, require that a provider obtain authorization from the Plan or the issuer for prescribing a length of stay not in excess of 48 hours (or 96 hours). 16 Flexible Spending Account Plan Part HL DCSA Benefits The following Questions and Answers relate to the DCSA benefits. This section only applies to the extent that you have elected to allocate Pre -tax Contributions to the DCSA. Q -24. What is the "Dependent Care Spending Account "? The DCSA is the portion of the Plan that provides for reimbursement of Eligible Day Care Expenses incurred by the Participant. If you elect benefits under this portion of the Plan, a non- interest bearing bookkeeping account will be set up to keep a record of Pre -tax Contributions (and where applicable, any non - elective Employer contributions) allocated to the account and the reimbursements for Eligible Day Care Expenses to which you are entitled during the Plan Year. No actual account is established; it is merely a bookkeeping account. Q -25. What is the maximum reimbursement amount that I may elect under the DCSA? You may choose any reimbursement amount you desire subject to the maximum annual DCSA Reimbursement Amount (and DCSA Minimum Reimbursement Amount) described in the Plan Information Appendix. In addition, the amount of reimbursement that you receive cannot exceed the lesser of your or your spouse's earned income (as defined in Code Section 32). For purposes of this DCSA, your spouse will be deemed to have earned income of $250 ($500 if you have two or more Qualifying Individuals (as defined in Q -29), for each month that your spouse is (i) physically or mentally incapable of caring for himself or herself, or (ii) a full -time student (as defined by Code Section 21). Q -26. How are amounts allocated to the DCSA withheld from my pay? When you enroll online, you specify the amount of reimbursement for Eligible Day Care Expenses you wish to pay for with Pre -tax Contributions. Thereafter, an equal pro -rata portion of the annual contribution, reduced by any non - elective Employer Contributions (if any) allocated to your DCSA sub - account, will be withheld from each paycheck by your Employer. Q -27. What amounts will be available for reimbursement of Eligible Day Care Expenses at any particular time during the Plan Year? Under the DCSA, you may be reimbursed only up to the amount of your DCSA sub - account balance at the time the request for reimbursement is processed. Q -28. How do I receive reimbursement under the DCSA? When you incur an Eligible Day Care Expense, you file a claim with the Plan's Third Party Administrator by completing and submitting a Request for Reimbursement Form. You may obtain a Request for Reimbursement Form from the Plan Administrator or the Third Party Administrator. You must include with your Request for Reimbursement Form a written statement from the service provider (e.g., an invoice) associated with each expense that indicates the following: • The nature of the expense; • The date or dates the services were provided; and • The amount of the expense. 17 The Third Party Administrator will process the claim once it receives the Request for Reimbursement Form from you. Reimbursement for expenses that are determined to be Eligible Day Care Expenses will be made as soon as possible after recei,.irg the claim and processing it. If the expense is determined to not be an "Eligible Day Care lixpense" you will receive notification of this determination. You must submit all claims for reimbursement for Eligible Day Care Expenses prior to the end of the Run -out Period. The Rua -out Period is described in the Plan Information Appendix. Q -29. What are "Eligible Dar Care Expenses "? You may be reimbursed for work- related dependent day care expenses ( "Eligible Day Care Expenses "). In other words, the expenses have to be incurred in order for you and your spouse (if applicable) to work or look for work. Generally, an expense mus' meet all of the following conditions for it to be an Eligible Day Care Expense: 1. The expense is incurred for services rendered after the date of your election to receive Dependent Care Reimbursement benefits and during the calendar year to which it applies. 2. Each individual for whom you incur the expense is a 'Qualifying Individual." A "Qualifying Individual" is: • An individual that you can claim on your federal income tax return as a "Qualifying Child" (as defined in Code Section ''2(a)(1)) and who is age 12 or under, or • A spouse or other tax "Dependent" (as defined generally in Code Section 21) who is physically or mentally incapable of caring ]-or himself or herself and who has the same principal place of abode as you for more than half of the year. For purposes of this DCSA only, a "Dependent" under Code Section 21 means an individual who is your tax dependent as defined it Code Section 152 or any individual who would otherwise qualify as your tax dependent under Code Section 152 but for the fact that (i) the individual has income in excess of the exemption amount set forth in Code Section 151(c): (ii) the individual is a child of a Participant who is a tax dependent of another taxpayer under Code Section 152; or (iii) the individual is married and files a joint return with his/her spouse. In addition, a child to whom Section 152(e) applies (a child of divorced or separated parents who resides with one or both parents for more than half the year and receives over half of his/her support from one or both parents) may only be the qualifying individual of the "custodial parent" (as defined in Code Section 152(e)(3)) without regard to which parent claims the child as a dependent on his or her tax return. 3. The expense is incurred for the custodial care cf a Qualifying Individual (as described above), or for related household services, and is incurred to enable you (and your spouse, if applicable) to be gainfully employed or look for work. 'Vk hether the expense enables you (and your spouse if applicable) to work or look for work is determined on a daily basis. Normally, an allocation must be made for all days for which you (ane your spouse, if applicable) are not working or looking for work; however, an allocation is not required for temporary absences beginning and ending within the period of time for which the day care center requires you to pay for day care. Expenses for overnight stays or overnight camp are not Eligible Day Care Expenses. Expenses that are primarily for education, food and/or clothing are not considered to be for "custodial" care. Consequently, tuition expenses for kindergarten (or its equivalent) and above do not qualify as custodial care. However, summer day camps are considered to be for custodial care even if they provide primarily educational activities. . 4. If the expense is incurred for services outside your household and such expenses are incurred for the care of a Qualifying Individual who is age 13 or older, such dependent regularly spends at least 8 hours per day in your home. 5. If the expense is incurred for services provided by a dependent care center (i.e., a facility that provides care for more than 6 individuals not residing at the facility), the center complies with all applicable state and local laws and regulations. 6. The day care is not provided by a "child" (as defined in Code Section 152(f)(1)) of yours who is under age 19 the entire year in which the expense is incurred or an individual for whom you or your Spouse is entitled to a personal tax exemption as a Dependent. Moreover, the day care cannot be provided by the Participant's Spouse or the parent of the Qualifying Individual. . 7. You must supply the taxpayer identification number for each dependent care service provider to the IRS with your annual tax return by completing IRS Form 2441. You are encouraged to consult your personal tax advisor or IRS Publication 503 for further guidance as to what is or is not an Eligible Day Care Expense if you have any doubts. In order to exclude from income the amounts you receive as reimbursement for Eligible Day Care Expenses, you are generally required to provide the name, address and taxpayer identification number of the dependent care service provider on your federal income tax return. Q -30. When must the expenses be incurred in order to receive reimbursement? Eligible Day Care Expenses must be incurred during the Plan Year and while a Participant. An expense is "incurred" when the service or treatment giving rise to the expense has been performed and not in advance of the services. You may not be reimbursed for any expenses arising before the DCSA becomes effective, before your DCSA election becomes effective, or after a separation from service. Q -31. What if the Eligible Day Care Expenses I incur during the Plan Year are less than the annual amount I have allocated to the DCSA? You will not be entitled to receive any direct or indirect payment of any amount that represents the difference between the actual Eligible Day Care Expenses you have incurred and the annual reimbursement amount that you have elected. Except as otherwise set forth in the Plan Information Appendix, any amount allocated to the DCSA shall be forfeited by the Participant if it has not been applied by the end of the Run -out Period to reimburse expenses incurred during the Plan Year. The Run -out Period is described in the Plan Information Appendix. Amounts so forfeited shall be used to offset administrative expenses and future costs, and/or applied in a manner that is consistent with applicable rules and regulations. R Q -32 What happens if a claim for benefits under the DCSA is denied? If you are denied a benefit under the DCSA, you should proceed in accordance with the claims and appeal procedures set forth in the Plan Information Appendix. Q -33. What happens to unclaimed DCSA reimbursements? Any DCSA reimbursements that are unclaimed (e.g., uncashed benefit checks) by the close of the Plan Year following the Plan Year in which the Eligible Day Care Ex pense was incurred shall be forfeited. Q -34. Will I be taxed on the DCSA reimbursement I receive? You will not normally be taxed on your DCSA reimbursement. provided that your family's aggregate dependent day care reimbursement (under this DCSA and/or another employer's DCSA) does not exceed the statutory limits set forth above. However, to qualify for tax -free treatment, you will be required to list the names and taxpayer identification numbers on your annual tax return of any persons who provided you with dependent care services during the calendar year for which you have claimed a tax -free reimbursement Q -35. If I participate in the DCSA, will I still be able to claim the household and dependent care credit on my federal income tax return? You may not claim any other tax benefit for the tax -free amounts received by you under this DCSA, although the balance of your Eligible Day Care Expenses not reimbursed under this DCSA may be eligible for the dependent care credit. Q -36. What is the household and dependent care credit? The household and dependent care credit is an allowance for a percentage of your annual Eligible Day Care Expenses as a credit against your federal income tax liability under the Code. In determining what the tax credit would be, you may take into account only $3,000 of such expenses for one Qualifying Individual, or $6,000 for two or more Qualifying Individuals. Depending on your adjusted gross income, the percentage could be as much as 35% of your Eligible Day Care Expenses (to a maximum credit amount of $1,050 for one Qualifying Individual or $2,100 for two or more Qualifying Individuals.) to a minimum of 20% of such expenses. The maximum 35% rate must be reduced by 1% (but not below 20 %) for each $2,000 portion (or any fraction of $2,000) of your adjusted gross income over SI 5,000. Illustration: Assume you have one Qualifying Individual for whom you have incurred Eligible Day Care Expenses of $3,600, and that your adjusted gross income is $21,000. Since only one Qualifying Individual is invoked, the credit will be calculated by applying the appropriate percentage to the first $3,000 of the expenses. The percentage is, in turn, arrived at by subtracting one percentage point from 35% for each $2,000 of your adjusted gross income over $15,000. The calculation is: 35% -- [($21,000 - 15,000)/$2,000 X I %] = 32 %. Thus, your tax credit would be $3,000 X 32 0h = $960. If you had incurred the same expenses for two or more Qualifying Individuals, your credit would have been $3,600 X 32 "c = $1,152, because the entire expense would have been taken into account, not just the first $3 000 20 Flexible Spending Account Plan Plan Information Appendix This Plan Information Appendix provides information specific to the East Valley Water District Flexible Spending Account Plan. I. EMPLOYERIPLAN SPONSOR INFORMATION 1. Name, address, and telephone number of the Employer/Plan Sponsor: East Valley Water District 3654 E Highland Ave Ste 18 Highland CA 92346 909 - 381 -6463 2. Employer's federal tax identification number: 95- 6005364 3. Adopting Employers participating in the Plan: n/a 4. Effective Date of the Plan: January 1, 2011 5. Effective Date of Amendment / Restatement if different from 4): n/a 6. The initial Plan Year: January 1, 2011 to December 31, 2011 7. All subsequent Plan Years: n/a 8. Name, address, and telephone number of the Plan Administrator: The Plan Administrator has the exclusive right to interpret the Plan and to decide all matters arising under the Plan, including the right to make determinations of fact, and construe and interpret possible ambiguities, inconsistencies, or omissions in the Plan and this SPD. Brian Tompkins 3654 E Highland Ave Ste 18 Highland CA 92346 909 -381 -6463 9. Plan Number: n/a 10. Third -Party Administrator: ADP Benefit Services 2575 Westside Parkway, Suite 500 Alpharetta, GA 30004 -3852 PI -1 11. COBRA Administrator: Justine Hendric };sen II. ELIGIBILITY, EFFECTIVE DATE OF COVERAGE, and ELECTIONS (a) The Flexible Spending Account Plan Each employee who passes the 180 day probation period ( "Eligibility Requirements ") will be eligible to participate in this Plan on the first of the month following eligibility ( "Eligibility Date "). The employee's commencement of participation in the Plan is conditioned on the employee properly enrolling online as summarized in the SPD. III. Spending Account Reimbursement Limits (a)(1) HCSA Reimbursement: The HCSA Reimbursement Amount shall not exceed the amount elected under the Plan. which cannot exceed $5000.00 pc-7 Plan Year. The HCSA Minimum Reimbursement Amount that may be elected is $260.00. (a)(2) Interaction with HRA. See below regarding this HCSA's rules with respect to coordination with an HRA Does the Employer sponsors an HRA? Does this HCSA or the HRA pay first with no respect to any expenses that are covered by n/a both the HRA and HCSA? (b) DCSA Reimbursement. The DCSA Reimbursement Amount shall not exceed the amount elected, which cannot exceed the statutory maximum. The DCSA minimum reimbursement amount that may be elected is $260.00. You should note that the statutory maximum annual you (this only applies if "statutory maximum" reimbursement that may be elected under the DCSA): Are married and file a joint return; amount is currently $5,000 per Plan Year if is identifed as the maximum manual Are married but your spouse maintains a separate residence for the last 6 months of the calendar year, you file a separate tax return, and you furnish more than one -half the cost of maintaining those Qualifying Individuals for whom you are eligible to receive tax -free reimbursements under the DCSA; or Are single. If you are married and reside together, but file a separate federal income tax return, the statutory maximum reimbursement amount under the DCSA that you may elec. is $2,500. IV. RUN -OUT PERIOD FOR PLAN YEAR EXPENSES PI -2 (a) The Run -out Period for active employees is March 15 after the end of the Plan Year. (b) The Run -out Period for Participants whose coverage is terminated employees is 60 days following termination. V. CLAIMS AND APPEAL PROCEDURES If you are denied a benefit under this Plan, you should proceed in accordance with the following claims review procedures. Step 1: Notice is received from Third Party Administrator. If your claim is denied, you will receive written notice from the Third Party Administrator that your claim is denied as soon as reasonably possible, but no later than 30 days after receipt of the claim. For reasons beyond the control of the Third Party Administrator, the Third Party Administrator may take up to an additional 15 days to review your claim. You will be provided written notice of the need for additional time prior to the end of the 30 -day period. If the reason for the additional time is that you need to provide additional information, you will have 45 days from the notice of the extension to obtain that information. The time period during which the Third Party Administrator must make a decision will be suspended until the earlier of the date that you provide the information or the end of the 45 -day period. Step 2: Review your notice carefully. Once you have received your notice from the Third Party Administrator, review it carefully. The notice will contain: • The reason(s) for the denial and the Plan provisions on which the denial is based; • A description of any additional information necessary for you to perfect your claim, why the information is necessary, and your time limit for submitting the information; • A description of the Plan's appeal procedures and the time limits applicable to such procedures; and • A right to request all documentation relevant to your claim. Step 3: Ifyou disagree with the decision, file an appeal. If you do not agree with the decision of the Third Party Administrator, you may file a written appeal. You should file your appeal with the Third Party Administrator no later than 180 days after receipt of the notice described in Step 1. You should submit all information identified in the notice of denial as necessary to perfect your claim and any additional information that you believe would support your claim. Step 4: Notice of Denial is received from claims reviewer. If the claim is again denied, you will be notified in writing no later than 30 days after receipt of the appeal by the Third Party Administrator. Step 5: Review your notice carefully. You should take the same action that you take in Step 2 described above. The notice will contain the same type of information that is provided in the first notice of denial provided by the Third Party Administrator. Step 6: Ifyou still disagree with the Third Party Administrator's decision, file a 2id Level Appeal with the Plan Administrator. If you still do not agree with the Third Party Administrator's decision, you may file a written appeal with the Plan Administrator within 60 days after receiving the first level appeal denial notice from the Third Party Administrator. You should gather any PI -3 additional information that is identified in the notice as necessa-y to perfect your claim and any other information that you believe would support your claim. If the Plan Administrator denies your 2 n Level Appeal, you w It re -eive notice within 30 days after the Plan Administrator receives your claim. The notice v ill contain the same type of information that was referenced in Step 1 above. Important Information Other important information regarding your appeals • Each level of appeal will be independent from the previous level (i.e., the same person(s) or subordinates of the same person(s) involved in a prior level of appeal would not be involved in the appeal). • On each level of appeal, the claims reviewer will -eview relevant information that you submit even if it is new information. • The Plan Administrator is required to give the Participant notice of any internal rules, guidelines, protocols or similar criteria used as a basis for the adverse determination. • You cannot file suit in federal court until you have exhausted these appeals procedures, however, you have the right to file suit under ERISA Section 502 following an adverse appeal decision. • Each Participant has the right to request and obtain documents, records and other information as it pertains to their Benefit Plan(s). VI. GRACE PERIOD The Employer has established a "grace period" for the hcsa /dcsa that follows the end of the Plan Year during which any amounts unused at the end of the Plan Year may be used to reimburse Eligible Expenses incurred during the grace period. The grace period will begin on the first day of the next Plan Year and will end two (2) months and fifteen (15) days later. For example, if the Plan Year ends December 31, 2005, the grace period begins January 1, 2006 and ends March 15, 2006. In order to take advantage of the grace period, you must be: A Participant in the HCSA and /or DCSA (as applicable) on the last day of the Plan Year to which the grace period relates, or (for HCSA only) A Qualified Beneficiary who is receiving COBRA coverage under the HCSA on the last day of the Plan Year to which the grace period relates. Expenses incurred during a grace period must be submitted before the end of the Run -out Period described in this SPD. This is the same Run -out Period for expenses incurred during the Plan Year to which the grace period relates. Any unused amounts from the end of a Plan Year to which the grace period relates that are not used to reimburse eligible expenses incurred either during the Plan Year to which the grace period relates or during the grace period will be forfeited if not submitted for reimbursement before the end of the Run -out Period. The Employer may establish procedures whereby reimbursement for expenses incurred during the grace period (to the extent submitted before the end of the Run -out Period applicable to the prior Plan Year) are P 1 -4 reprocessed so that you are able to maximize your annual election amount for the current Plan Year. The procedures will be uniform and nondiscriminatory. VII. ELECTRONIC PAYMENT CARDS The Employer does permit Participants to use an electronic payment cards to pay for Eligible Expenses at the point of service. If the Employer permits Participants to use an electronic payment card, the following rules apply. Electronic Payment Card Terms of Usage You may use the electronic payment card to pay for HCSA expenses. You have two reimbursement options under the account(s) identified above. You can complete and submit a written claim for reimbursement ( "Traditional Paper Claims ") as indicated above. Alternatively, you may use an electronic payment card ( "Electronic Payment Card" or the "Card ") provided by the Employer to pay the expense. In order to be eligible for the Electronic Payment Card, you must agree to abide by the terms and conditions of the Electronic Payment Card Program (the "Program ") as set forth herein and in the Electronic Payment Cardholder Agreement (the "Cardholder Agreement ") including any fees applicable to participate in the program, limitations as to Card usage, the Plan's right to withhold and offset for ineligible claims, etc). The following is a summary of how the Electronic Payment Card option works. Electronic Payment Card: The Electronic Payment Card allows you to pay for Eligible Medical Expenses at the time that you incur the expense. Here is how the Electronic Payment Card works. (a) You must make an election to use the Card. In order to be eligible for the Electronic Payment Card, you must agree to abide by the terms and conditions of the Program as set forth herein and in the Electronic Payment Cardholder Agreement (the "Cardholder Agreement ") including any fees applicable to participate in the Program, limitations as to Card usage, the Plan's right to withhold and offset for ineligible claims, etc. A Cardholder Agreement will be provided to you. The Card will be turned off effective the first day of each Plan Year if you do not affirmatively agree to abide by the terms of the Program. The Cardholder Agreement is part of the terms and conditions of your Plan and this SPD. (b) The Card will be turned off when employment or coverage terminates. The Card will be turned off when you terminate employment or coverage under the Plan. You may not use the Card during any applicable COBRA continuation coverage period. (c) You must certify proper use of the Card. As specified in the Cardholder Agreement, you certify during the applicable election period that the amounts in your HCSA will only be used for Eligible Medical Expenses, that you have not been reimbursed for the expense, and that you will not seek reimbursement for the expense from any other source. Failure to abide by this certification will result in termination of Card use privileges. (d) Reimbursement under the Card is limited to certain merchants. Use of the Card for Eligible Medical Expenses is limited to merchants identified by the Plan Administrator or its designee as an eligible merchant. The Card will be administered in accordance with applicable IRS guidance. PI -5 (e) You swipe the Card at the merchant like you do any other rred.'t or debit card. When you incur an Eligible Medical Expense at an eligible merchant, such a< a co- payment or prescription drug expense, you swipe the Card at the merchant much like yo.i ,would a typical credit or debit card. The merchant is paid for the expense up to the maximum reimbursement amount available under the HCSA. Every time you swipe the Card, you certify to the Plan that the expense for which payment under the HCS A is being made is an Eligible Medical Expense, that you have not been reimbursed from any other source and you will not see:b: reimbursement from another source. (f) You must obtain and retain a receipt /third party statement each time you swipe the Card. You must obtain a third party statement from the merchant (e.g., receipt or invoice) that includes the following information each time you swipe the Card: • The nature of the expense (e.g., what type of service or treatment was provided); • If the expense is for an over - the - counter drug, the written statement must indicate the name of the drug; • The date the expense was incurred; and • The amount of the expense. You should retain this receipt for one year following the close of ,he Plan Year in which the expense is incurred. Even though payment is made under the Card arrangement, a written third party statement is generally required to be submitted (except as otherwise set forth in the applicable law and/or related guidance). You will receive a letter from the Third Party Administrator that a third party statement is needed. You must provide the third party statement to the Third Party Administrator within 45 days (or such longer period provided in the letter from the Third Party Administrator) of the request. In accordance with applicable guidance, there may be situations in which the Third Party Administrator does not ask for substantiation related to a Card swipe. (g) You must payback any improperly paid claims. If you are unable to provide adequate or timely substantiation as requested by the Third Party Administrator. you must repay the Plan for the unsubstantiated expense. The deadline for repaying the Plan is set forth in the Cardholder Agreement. If you do not repay the Plan within the applicable time period, the Card will be turned off and an amount equal to the unsubstantiated expense will be offset against future Eligible Medical Expenses. If no claims are submitted prior to the date you terminate coverage in the Plan, or claims are submitted but they are not sufficient to c )N er the unsubstantiated expense amount, then the amount may be withheld from your pay (as specified in the Cardholder Agreement) or the remaining unpaid amount may be treated by the Employer as any other bad debt, which will result in additional gross income for you. (h) You can use either the Electronic Payment Card cr the traditional paper claims approach. You have the choice as to how to submit your eligible claims. If you elect not to use the Electronic Payment Card, you may also submit claims under the Traditional Paper Claims approach discussed above. Claims for which the Electronic Payment Card has been used cannot be submitted as Traditional Paper Claims. PI -6 East Val ley Water District Board Memorandum No. B -09 -2010 Date: February 8, 2011 From: Brian W. Tompkins / Chief Financial Officer Subject: Financial Statements for the month ended December 31, 2010 Recommendation: Accept and file the attached financial report. Balance Sheet Total Assets decreased by $5,577,052 in December due to the use of restricted cash to formally retire the 2001 COPS. CIP did increase by $620,244 as several jobs had activity in December — see further discussion under Capital Projects below. Total Liabilities decreased by $5,745,913 as the 2001 COPs with a balance of $5,935,000 were officially retired, but current liabilities increased by approximately $220,000 with increased construction activity. Specifically, the month end payables included the first billing from SSC Construction for $333,665 for work on the Plant 134 project. The increase in current liabilities caused the current ratio (current assets to current liabilities) to weaken, dropping from 1.45:1 to 1.35:1, and the liquidity indicator of Unrestricted Cash and Investments compared to Current Liabilities fell from 96% to 92% coverage. However, the negative effect of a large payable to contractors at month end is temporary due to the fact that the District can request reimbursement from the state SRF fund, or from restricted bond proceeds to replenish unrestricted cash. Without the large payable to SSC, the ratios would have changed to 1.42:1 and 97 %, respectively. Revenue & Expenses Statement Operating Revenue Water sales in December were $113,109 under budget. In terms of volume, sales were down 9.5% from November to 492,556 HCF, and are down 100,226 HCF, or 16.9 %, compared to December 2009. Compared to two years ago, sales are down 82,452 HCF or 14.3 %. Year -to -date, sales are down 436,673 HCF or 8.2% compared to the first six months in fiscal year 2009 -10. Other District operating revenues were $2,407 over budget in December, and Sewer Treatment charges which are passed through to the City were $11,417 under budget. Both the sewer system and sewer treatment charges are significantly under budget as a result of a 12/09 to 12/10 drop of 21,693 HCF in water consumption by our commercial customers. Collection charges (delinquent, disconnect) are $30,263 over budget, (an average of $10,000 per month for October to December) as a result of the new $5 final notice charge (pink tag) that went into effect in October. Year to date, operating revenues are $520,836 under budget. Operating Expenses Operating Expenses were approximately $125 thousand under budget in December due primarily to the significant underutilization of contracted water treatment units. in the Source of Supply cost center. the District remitted two payments totaling $170,000 to SBVMWD. The first was for $120,000 and the District's participation in the Cooperative Groundwater Recharge Project, the second for $50,000 was to pre - purchase 400 acre -feet of water at the discounted rate of $125 /Acre Foot. Pumping costs were almost $30,000 under budget as maintenance expenditures were far lower than budgeted, and Water Treatment was $88,302 under budget due to low usage levels of the Envirogen treatment units. However, in January, a take -or -pay payment of approximately $80,000 will be made to Envirogen to satisfy contract requirements to pay a reduced rate for the deficit between water treated and the minimum volume of water treatment stipulated in our contracts with Envirogen. Transmission and Distribution costs were under budget for only the second time this fiscal year as more of the maintenance crew labor was diverted to Capital Projects. In General and Administrative expenses — • a large, annual software maintenance payment caused Office Equipment to exceed budget by $33,000, and • the awards banquet and longevity incentive payments distributed in December were the reason employee programs exceeded budget by $15,000. Total operating expenses are under budget $545,393 year to date, and although operating revenue is also under budget by $520,836, Operating Income for the July through December is still $24,557 over projections at $2,786,142. Budgeted operating income for the 2010 -11 fiscal year is $4,430,105 Capital Projects Capital expenditures during December included continuing work on leasehold improvements to Suite 30. There was also $456,939 spent on the CIP during December, consisting primarily of $79,943 spent on the Hillview main replacement project and $352,361 in costs incurred on Plant 134 as SSC began their construction work. East Valley Water District Balance Sheet - Unaudited December 31, 2010 ASSETS UTILITY PLANT - at cost: Utility Plant in Service - water department $125,135,088 Utility Plant in Service - sewer department 30,803,610 155,938,698 Less: Accumulated Depreciation (48,381,429) 107,557,269 Construction in Progress 6,659,897 114,217,166 RESTRICTED ASSETS: Customer / Construction Deposits 1,873,141 Capacity Fees 57,837 Construction Funds 16,022,129 Debt Service Funds - Trust Accts 972,202 18,867,472 CURRENT ASSETS: Cash and Investments 24,681,483 Less: Restricted Cash and Investments 18,867,472 5,814,011 Accounts Receivable (net of allowance) 1,191,426 Other Receivables (net of allowance) 304,126 Inventory 1,020,301 Prepaid Expenses 233,647 8,563,511 OTHER ASSETS AND DEFERRED COSTS (Net of Amortization): Bond discount and incidental bond expenses 318,759 Deferred financing charges 420,645 739,404 TOTAL ASSETS 142,387,553 Balance Sheet Page 1 East Valley Water District Balance Sheet - Unaudited December 31, 2010 LIABILITIES AND EQUITY LONG -TERM DEBT: 2010 Revenue Bonds $32,490,000 Premium on 2010 Revenue Bonds 2,213,063 DWR Loan 131,861 Less: Deferred amount on refunding of COPS (457,686) 34,377,238 CURRENT LIABILITIES: Accounts payable 2,096,996 Accrued payroll and benefits 1,296,729 Customer service deposits 1,656,220 Construction deposits 216,921 Accrued interest payable 6,475 Long Term Debt - amounts due within one year 1,071,307 6,344,648 TOTAL LIABILITIES 40,721,886 EQUITY: Contributed Capital: Restricted Developer Fees 57,837 Invested in Utility Plant 39,193,724 Other Contributed Capital 3,699,778 Retained Earnings: Reserved for water bond funds 6,475 Reserved for emergencies 2,170,000 Reserved for Unemployment Insurance 16,450 Unreserved 53,949,999 Net Income for current year 2,571 404 TOTAL EQUITY 101,665,667 TOTAL LIABILITIES AND EQUITY 142,387,553 Balance Sheet Page 2 MNa&am O M;:,ZF;:,g M M M M- o r N M 0; O O W O O 120M- NOOK -ANMN M V MO A O O�NrrMO M�M� -ENO M U AOy1p OM O Ni N 116N V 6L6o 0616MN O AN 111M N d 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 O O M 0 0 0 0 0 N p0 0 0 0 0 0 8 0 O O M 0 0 0 O O S S O N n O N NO O M O N pf O O O O O N O MO000a0 O r MfVC rM16 0001")hN h V0000ON M r N r V M M V MAN M M W - N M M N M Yam A'�M P M N �N A M O V i d w pp y a} 0 m1h 10 T(M(ppOr sq� moo 000 yM on(Om�Or MA 111M')IAIIW Cain o 01 WMWNOM< k ONO root A M0 'm NN, 0 < N.- MM�OIn O wo1$.aaa N M o �v Nn����N elm oaA eN r Q M-- N M r U_ to L W -'00 OIA I�OOMM W �OOOOOt70G� N MO MM ap V�NID Cyyf�'J�ON N dC Or� A <OI MO MO q M 0MNAMMM $ N ONN-0A M �. 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PI - Phase 1 1,825,125 32,250 1,200,000 7,890,000 Plant 150 - Lower Zn Perch Treat. PI - Phase 2 - - - - Plant 152 - Inter. Zone Perch Treat. Plant - - - Total Treatment Projects 3,583,136 475,836 11,747,500 13,065,500 Pumping Facilities Plant 9 - Rehab Forebay and Booster Station - - 50,000 - Plant 40 - Inter to Upper Zone Transfer 2,096 125 300,000 Plant 127 - Lower to Inter Zone Transfer - - - - Plant 12 - Replace Boosters / Well - - - 500,000 Plant 134 - Upper to Canal Zone Transfer - - - - Plant 39 - Inter to Upper Zone Transfer - - - - Plant 25 - Inter to Upper Zone Transfer - - - - Plant 143 - Inter to Upper Zone Transfer - - 1,000,000 - Total Pumping Projects 2,096 125 1,350,000 500,000 Wastewater Collection System Sewer System Studies / Planning 142,662 7,370 50,000 250,000 Sewer Main Lining 200,000 450,000 Conejo Main Replacement 112,889 28,905 1,040,000 - Total Wastewater Collection Projects 255,551 36,275 1,290,000 700,000 Page 2 20112.13 Year 3 2013.14 Year 4 2014.15 V Year 5 2015 -16 Year 6 - ` Project Totals Beyond Year 6 - 1,925,000 1,925,000 - 3,300,000 3,300,000 - 4,400,000 4,400,000 - 9,625,000 9,625,000 - 7,377,098 10,750,000 1,075,000 - - 21,572,375 - - 5,050,000 2,850,000 - 7,900,000 - - - 19,160,000 19,160,000 10,750,000 1,075,000 5,050,000 2,850,000 19,160,000 56,009,473 250,000 - - - 250,000 - - 2,221 - 300,000 300,000 500,000 - - - 1,000,000 520,000 780,000 - - 1,300,000 - - 2,200,000 - 2,200,000 400,000 - 400,000 - - - - 2,900,000 2,900,000 1,270,000 300,000 780,000 2,600,000 2,900,000 8,352,221 - - - 400,032 450,000 450,000 450,000 450,000 1,800,000 4,050,000 - - 141,794 450,000 450,000 450,000 450,000 1,800,000 4,591,826 Page 3 EAST VALLEY WATER DISTRICT- Capital Improvement Program Updated through December 2010 Page 4 Prior Current (Memo). Projects- By Type Years Yea, 2010 -11 2011 -12 Actual Actual Budget Year 2 Transmission & Distribution System 6th St 20" Pipeline - Plants 11 & 12 to 150 - - 510,000 Live Oak Main Replacement 9,943 "97,136 70,000 - Harlan Lane Main Replacement 7,957 - 90,000 70,000 Cunningham / Hillview / Crest / Bruce - :?87,972 450,000 - 6th St 30" Pipeline - Plant 151 to Plant 40 - 33,573 100,000 3,815,000 6th St 30" Pipeline - PI 40 to PI 143 9th St 12" Pipeline - Del Rosa to Sterling - AMR Meter Replacement Program 38,447 200,000 300,000 Plant 59 Recoating - - - 300,000 Plant 143 - 10mg Inter Zone Storage - 1,205 1,050,000 - Reservoir- Greenspot Rd S Curve - - - Reservoir -Seven Oaks Dam Rd - - - Relocation of Facilities for Other Agencies 54,733 15,244 100,000 Eastwood Farms Assessment District 112,529 51,561 2,211,399 - Baseline Gardens 94 Total Trans & Distribution Projects 185,162 625,231 4,271,399 4,995,000 General Projects GIS Implementation 457,752 115,719 160,000 100,000 Headquarters Building - - - - Total General Projects 457,752 115,719 160,000 100,000 77T Miscellaneous / Developer Projects Developer Water Facilities (Reimb by Fees) 226,444 (20,693) Developer Sewer Facilities (Reimt by Fees) (17,590) 5,514 Regional Treatment Plant 24,246 Seven Oaks Dam (SAR) Discharge 206,057 2010 Flood Clean Up - Highland 744 2010 Flood Clean U - EVWD Facilities :7-4. =N= ... Page 4 2012 -13 2013 -14 2014 -15 2015 -16 TBeyond Project Year 3 Year 4 Year 5 Year 6 Year 6 Totals 510,000 207,079 77,957 287,972 2,060,000 - - 5,908,573 1,300,000 1,000,000 - 5,400,000 7,700,000 - - 700,000 - 700,000 300,000 300,000 - 938,447 _ _ 300,000 - 10,700,000 10,701,205 - 10,700,000 10,700,000 - 10,700,000 10,700,000 - 69,977 _ _ _ - 164,090 3,660,000 1,300,000 700,000 37,500,000 48,965,299 _ _ - 673,471 10,000,000 10, 000,000 10,000,000 10,673,471 205,751 (12,076) 24,246 Page 5 U W W (a o � U W W Q L N LL � O o W N J < J O M W Z W J Z N O (r0 O W N YD 'i r� N O N 0 00 0 N In M .N- 3 w Q Q W -a OW Oix CL z w w O o 0 0 0 0 0 IL W LL (y,r o r 0 O o ui N ui CrD L6 N LL Z 0 W LLI (n (D Z K W a � x rn w O H U (n W W W 0 LL N 0 W w qJ � L Z O W 2 a X 12f w O F- L) W W p w LL W W W U) W W O U O w w K w 0 11- w 0 LU W W J 0 r U w r. 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O m- a�owEUO ac0rn m N-6 n 0 m d o E GowwCiw ¢ > o. m E aci a) 2 a; U .E c a) U) �in33:<<0w2 Z O U) J_ W O W O Ln W U 2 W o a X N W U 0 N U Q W W x Y � J LL U OU 0 LL O co i U U 2 U o o 0 J O O O C7 z W O rn 2 N W Y Z 0 C J O J 0 C) CD O) CD N Z O1- -1 ---1 00 N O �- W H N N O O H W N rr- n r N N O N N LLI 0 0 0 O N O N N Ocam- W m O 0 C m O N N U O o dn CD W E U < � a o a j mU c U E CD 0 z �cQnEoE E d N N U J N 3 � U) "O = d W O Q U Q to E E °: a)�IZ) m m ._ rn.- m m ° -x of or' �jU Q Q U 0 O 0 0 0 V O Ln V J F 0 C7 z W Y o J Q �a ww o w cc o LLLL U Q w 0 0 0 0 0 0 0 U 000u0000 Z oNofr of 6 W U) N M w m N W W N t ww LL LL Z O U 0 C) CD O) CD N Z O1- -1 ---1 00 N O �- W H N N O O H W N rr- n r N N O N N LLI 0 0 0 O N O N N Ocam- W m O 0 C m O N N U O o dn CD W E U < � a o a j mU c U E CD 0 z �cQnEoE E d N N U J N 3 � U) "O = d W O Q U Q to E E °: a)�IZ) m m ._ rn.- m m ° -x of or' �jU Q Q U 0 O 0 0 0 V O Ln V J F 0 EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Matt Le Vesque MONTH January 2011 Board Meetings 1/11,1/25 Conferences and Other Meetings DATE ORGANIZATION PURPOSE 10 -Jan ACE Seven Oaks Dam 10 -Jan SBVMWD SAS Task Force 12 -Jan EVWD Public Affairs Committee 13 -Jan USARWA Meeting 19 -Jan CPS Strategic Workforce Planning & Management 21 -Jan EVWD Mtg. w/ CV re Community Affairs 26 -Jan EVWD Mtg. w/ SBSO, Bob re security 27 -Jan MEM Instruction TOTAL # OF MEETINGS 9 @ $175.00 each $ 1,575.00 Travel Expenses: (Details on Back) $ Total Director's Meetings & Expenses $ 1,575.00 Director's Signature Date of Board Approval Administrative Manager Miscellaneous Notes Less Any Advance Payments $ TOTAL DUE DIRECTOR $ 1,575.00 TRAVEL EXPENSES Lodgings: (Detailed receipts attached *) DATE FUNCTION ATTENDED _ AMOUNT TOTAL LODGING $ Personal Auto: (Detailed receipts attached *) PARKING DATE FUNCTION ATTENDED MILES FEES ¢ TOTAL FEES $ CURRENT RATE: $0.51 TOTAL NAILES $ Meals: (Detailed receipts attached *) DATE FUNCTION ATTENDED Other: (Detailed receipts attached *) DATE FUNCTION / NATURE OF EXPENSE * ORIGINAL RECEIPTS REQUIRED TOTAL MEALS $ TOTAL OTHER $ TRAVEL EXPENSES $ AMOUNT EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Larry Malmberg MONTH January , 2011 _ Board Meetings *1- 11 -11; *1 -25 -11 Conferences and Other Meetings DATE ORGANIZATION PURPOSE 5 -Jan * SBACC Chamber of Commerce Koffee Klatch 10 -Jan *EVWD 7 Oaks Dam inspection and video 12 -Jan *EVWD Public Affairs Committee Meeting 12 -Jan SBACC Chamber of Commerce Koffee Klatch 19 -Jan SBACC Chamber of Commerce Koffee Klatch 19 -Jan *EVWD ERNIE Meeting 21 -Jan *EVWD Legislative Committee Meetin 21 -Jan EVWD Meeting with CV Stratagies. 24 -Jan *CMUA Legislative Meeting in Sacramento 26 -Jan *EVWD Meet with Bob, Mayor, COP re: Security 27 -Jan *CDSA Seminar in Riverside. TOTAL # OF MEETINGS 10@ $175.00 each $ 1,750.00 Travel Expenses: (Details on Back) $ 78A0 Total Director's Meetings & Expenses $ 1,828.40 Director's Signatur Less Any Advance Payments $ Date of Board Approval - TOTAL DUE DIRECTOR $ 1,828.40 Administrative Manager Miscellaneous Notes TRAVEL EXPENSES Lodgings: (Detailed receipts attached`) DATE FUNCTION ATTENDED AMOUNT TOTAL LODGING $ Personal Auto: (Detailed receipts attached') PARKING DATE FUNCTION ATTENDED MILES FEES 24 -Jan CMUA Legislative Day Sacramento CA Drop off and Pick up CIA 56 $ 24 -Jan Shuttle to downtown Sacramento $ 14.00 27 -Jan CSDA Seminar in Riverside 49 $ c TOTAL FEES $ 14.00 CURRENT RATE: $0.51 TOTAL MILES 105 $ 53.55 Meals: (Detailed receipts attached') DATE FUNCTION ATTENDED AMOUNT 24 -Jan Breakfast at CIA $ 10.85 TOTAL MEALS $ 10.85 Other: (Detailed receipts attached') DATE FUNCTION I NATURE OF EXPENSE AMOUNT TOTAL OTHER $ ORIGINAL RECEIPTS REQUIRED TRAVEL EXPENSES $ 78.40 EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR: _Morales MONTH January_ 2011 Board Meetings: _11, 25 Conferences and Other Meetings DATE ORGANIZATION PURPOSE 10 City San Bernardino Council Meeting - Sewer Rate Agenda Item 12 EVWD Policy Ad Hoc Committee 13 EVWD/Mathis District Strategic Plan Upd 21 E\ WD___j,� LegisWve Committee 21 CVS Str` i Pubkc Relations Strategic Plan (no charge) 27 Main Evert Mgmt._ Model- Netics Management training (no charge) TOTAL # OF MEETINGS-6_@ $175.00 each $1,050.00_ Travel Expenses: (Details on Back) Total Director's Expenses $ Total Director's Meetings & Expenses $1,050.00_ Director's Signature Less any Advance Payments $ Date of Board Approval EVWD Eto JAN 201 1A TOTAL DUE DIRECTOR $1,050.00_ TRAVEL EXPENSES Lodgings: (Detailed receipts attached') DATE FUNCTION ATTENDED AMOUNT TOTAL LODGING $ Personal Auto: (Detailed receipts attached') DATE FUNCTION ATTENDED MILES PARKING FEES TOTAL FEES $ TOTAL MILES x $.50 per mile Meals: (Detailed receipts attached') DATE FUNCTION ATTENDED AMOUNT TOTAL MEALS $ Other: (Detailed receipts attached') DATE FUNCTION ATTENDED AMOUNT I TOTAL OTHER $ * ORIGINAL RECEIPTS REQUIRED TRAVEL EXPENSES $ (Enter this total on the front of form) EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Sturgeon MONTH January 201:1 Board Meetings 11 & 25 Conferences and Other Meetings DATE ORGANIZATION 31 Dr. Mathis 04 City of Redlands 25 General Manager 19 CPS 12 Community Affairs 21 CV Strategies 20 County of SB 05 SB C of C 27 Model - Netics 07 Seven Oaks Dam 12 Policy Committee PURPOSE Council Meeting Meeting Strategic Workforce Meeting Meeting Meeting Vision of the County Workshop Breakfast Meeting Instruction Tour Meeting TOTAL # OF MEETINGS 9 @ $175.00 each $ 1 , 575 Travel Expenses: (Details on Back) $ Total Director's Meetings & Expenses $ 11575 Director's Signature Date of Board Approval February 8, 2011 Administrative Manager Miscellaneous Notes Less Any Advance Payments $ TOTAL DUE DIRECTOR $ 1, 5 7 5 TRAVELEXPENSES Lodgings: (Detailed receipts attached') DATE FUNCTION ATTENDED AMOUNT Personal Auto: (Detailed receipts attached`) DATE FUNCTION ATTENDED TOTAL LODGING $ PARKING MILES FEES TOTAL FEES $ CURRENT RATE: $0.50 TOTAL MILES $ Meals: (Detailed receipts attached') DATE FUNCTION ATTENDED 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 Wilson Board Meetings 1/11;1/25 Conferences and Other Meetings DATE ORGANIZATION 10 -Jan BTAC & Sucker Task Force 18 -Jan SBVMWD 21 -Jan EVWD 1/23 -1/25 CMUA 26 -Jan EVWD Travel Expenses: (Details on Back) Director's Signature Sate of 3oard Approval kdministrative danager Aiscellaneous dotes MONTH Jan _201 �__ PURPOSE Board Meeting Meeting with Cara D Briefing & Visits Meeting with Gen Mgr TOTAL # OF MEETINGS 7 Q $175.00 each $ 1,225.00 $ 513.70 Total Director's Meetings & Expenses $ 1,738.70 Less Any Advance Payments $ 513.70 TOTAL DUE DIRECTOR $ 1.225.00 TRAVEL EXPENSES Lodgings: (Detailed receipts attached*) DATE FUNCTION ATTENDED AMOUNT 1123 -1/25 CMUA $ 283.30 TOTAL LODGING $ 283.30 Personal Auto: (Detailed receipts attached`) DATE FUNCTION ATTENDED Y_ MILES $ $ TOTAL FEES $ CURRENT RATE: $0.51 TOTAL MILES $ Meals: (Detailed receipts attached -) DATE FUNCTION ATTENDED a e PARKING FEES L•Cd9P12Y1 TOTAL MEALS $ Other. (Detailed receipts attached') DATE FUNCTION / NATURE OF EXPENSE AMOUNT 1/23;1/25 Air Fare- _ $ 230.40 .ORIGINAL RECEIPTS REQUIRED TOTAL OTHER $ 230.40 TRAVEL EXPENSES $ 513.70 t4vater stValley District Board Memorandum No. B -07 -2011 From: Brian W. Tompkins / Chief Financial Officer /Ok Subject: Investment Report for the quarter ended December 31, 2010 Recommendation: Accept and file the attached report Unrestricted Investments LAIF Date: February 8, 2011 The balance held in LAIF at the beginning of the quarter was $3,021,780. During October, interest earnings related to the third calendar quarter of $4,212 were posted to the account leaving an ending balance of $3,025,991. There were no transfers to or from the LAIF account during quarter. Fourth quarter earnings on the LAIF account were $3,476 calculated at an apportionment rate of .460/0. This represents a further decline in the apportionment rate from .51% for the previous quarter. These earnings were posted to our account on January 14, 2011. Citizen's Business Bank Wealth Management The total (book) value of the assets held with CBB increased $6,826 to $4,085,800 during the quarter ended 12/31/10. The purchase and sale of securities is shown on the attached supplemental schedule. Semi - annual interest payments received on securities in the District's portfolio were $8,994 for the quarter ended December 31, while the money market fund earned $540. These earnings were reduced by losses of $1,133 realized when bonds purchased at a premium, and therefore having a carrying value higher than their face value, matured. Investment manager fees paid during the quarter were $1,575. There were no transfers to or from this investment account during the fourth quarter. Restricted Investments Union Bank The 2001 COPs were paid off in December and therefore the Installment Payment Fund for that COP issue was closed. Four new accounts were opened to service the activity related to the 2010 Revenue Bonds: Acquisition Funds for both water and sewer, an Interest Fund, and a Revenue Fund. The Water Acquisition Fund was established with $15 million in bond proceeds and will provide the funding for water capital projects. Money in the Fund is currently invested in Union Bank's Blackrock T(reasury) mutual fund, but $14,000,000 was moved to an LAIF bond proceeds account on January 25`h in order to obtain a better yield. Interest earned on the account curing the quarter was $215. The Sewer Acquisition Fund was established with $1 million in bond proceeds to provide funding for sewer projects. It is invested in Union Bank's Blackrock T fund and will be kept there through March. If new projects, in addition to the Conejo sewer main replacemem. are not identified by March 31, a majority of the balance will be moved to LAIF. The Interest Fund received $655,721 in bond proceeds. This amount is intended to help defray some of the debt service burden related to the new bonds until the second phase of the District's water rate increase becomes effective. One half of this account will be used to pay the April 1, 2011 bond interest payment and the balance of the account will be used for the October 1. 2011 payment. The Revenue fund was established to receive payments from the District for purposes of making payment to the bond holders. Annual debt service increments are being divided into 12 monthly installments, which are remitted to the Trustee on the 25t" of each month. Current year installments are $158,227 and installment payments were made in both November and December. Interest of $3 earned on the account brings the balance to $316,457 at December 31 51. Combining Investments At the last meeting director Morales noted that new treasuries being purchased by our investment manager at CBB wealth management have yields below 1 %, some as low as .375 %. In addition, we pay trustee fees to CBB of between $500 and $600 per month. By comparison, LAIFs apportionment rate, or yield, for the past quarter was .46% and we pay no explicit fees to LAIF, only those that may be built into the apportionment rate. Riskier investments, such as mortgage backed securities, are available at higher rates but we have asked the CBB investment manager to keep investment in these types of instruments to a very low percentage of our portfolio. Staff does not recommend taking on additional risk at this point as reserve targets have not been met. For calendar year 2010, the CBB investment account earned interest of $37,185 while paying $6,824 in trustee fees. The net earnings of $30,361 represents a return of .75% on an average investment portfolio of $4,056,565. Using this same portfolio total, and actual quarterly apportionment rates used by LAIF during 2010, LAIF would have returned $21,192, $9,169 less than CBB. I spoke to our investment manager last Tuesday to discuss investment options. He noted that the Treasury earning .375% (mentioned above) was purchased in early November and that the Treasury yields for two year notes have improved to around .6 %. We also ciscussed his purchase of some Fannie Mae and GNMA bonds with longer terms and higher yields, knowing they will be called in 6 to 12 months, in search of slightly better yields. His goal for our portfolio, working within parameters established by EVWD, is an average yield of 1 %. Unless there are objections by the board, staff recommends maintaining the current split between LAIF and CBB given that the returns by our CBB account are 30% higher. Staff will continue to monitor the yields and bring this issue back to the board if there is a significant change in investment results. 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W > >? a a> U> U >> a> a a a a f a¢ a f >> a> a g m> m a> a w E� f f w w f �� i tr f w w x w w w w f� f W O co 0 W W w co m W W W U 0 W U) co N N N N N •' 1 111 uj Z J m ui y W m W Q N m O y �O O �'zm W N W S a .J aaxQ Y (~G N N>> W m 0 N O J y wzzN(n w W 0 >waa(pz N w N f: }i 1- N Q J W co } 41 U' z J w f a S m Y U' Z Z W D J w H S f t N m N 2 m w J N 1- y Z J K w m 2 J J QQ p K a N 2 a c~p J (n W Q p a' Q Q a g W W> Q Q O K !r y Q 1• M W M m m Q 2 O m J O 2 K J M S O Q U U m M N = o uj 0 �~a LL w o uj a - > o mO w m w m m O o Y m O y O o w O w Lu 0 w K z O 7 O O N g z _ z w a 0 U w O z O h O O Q W a O o � 0> a o0U 3a �J x =O m0w i cJ m O f�l O A O O N M N N O M O m O n 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N �AV r W c.4 `\ N N` N\ r r r r r r r r yu S N i n K L J E LL �PSER CONSERVAT ION O'ST Ox' UR NAME IS OUR N255� January 6, 2011 Robert Martin East Valley Water District PO Box 3427 San Bernardino, CA 92413 SAN BERNARDINO VALLEY WATER CONSERVATION DISTItICT Established 1932 1630 West Redlands Boulevard, Suite A Redlands, CA 92373 -8032 (909) 793 -2503 Fax: (909) 793 -0188 RE: Status Report on Wash Plan Activities Dear Mr. Martin, P.O. Box 1839 Redlands, CA 92373 -0581 Email: info@sbvwcd.dst.ca.us w .sbvwcd.dst.ca.us It has been a several months since the last Wash Plan Task Force meeting and I believe that a brief status report on Wash Plan activities is in order to keep you informed of our progress. You will recall that at the March 04, 2010 Task Force meeting, Water Conservation District staff reported that the draft Habitat Conservation Plan (HCP) had been completed and that the administrative draft Final Environmental Impact Statement (EIS) on the Land Exchange had been submitted to the BLM for approval and public release. The BLM did issue the EIS, and public comment was received, and draft responses were prepared. BLM also initiated informal consultation with the U.S. Fish and Wildlife Service (USFWS) on the EIS. A preliminary review draft of the HCP had been submitted to Nancy Ferguson with USFWS back in September, 2009, and up until September of this year, and the District had been awaiting the results of her review. The final steps in the approval process, both in terms of finalizing the EIS and ultimately issuing the ESA incidental take permits, primarily hinge on the USFWS. You may recall that discussion at the March Task Force meeting also focused on current fiscal issues associated with the Wash Plan. Based on the presentation at the Task Force meeting, the governing committee recommended that the District invoice Task Force members for future project management costs and any other anticipated costs necessary to complete the Wash Plan, and obtain the incidental take permits required for project implementation. The Task Force directed the District to make a careful estimate of final project completion costs, given the sensibilities of any additional funding requests, in the current fiscal climate. In order to prepare a reliable estimate of future costs, the District was awaiting USFWS feedback on the HCP and the Section 7 process. Unfortunately, we had great difficulty engaging the USFWS in completing the Wash Plan review process, until recently. After several requests for a meeting, we finally met on September 9'" with Ms. Ferguson and her new boss, Assistant Field Supervisor Ken Corey, at a meeting also attended by the BLM. We have had a series of meetings with the BLM and the USFWS since September, with the last meeting on October 28'" The direction and feedback we have received from USFWS was not what we had hoped, and unfortunately not consistent with representations USFWS had made through the many years of negotiating the compromises on mining and mitigation properties through the development of the Wash Plan. The bottom line is that the USFWS will not support the land exchange as it is presented currently configured, and will require extensive revisions to the HCP. BOARD Richard W. Corneille Arnold L. Wright David E. Raley GENERAL Daniel B. Cozad OE Clare henry Day John l,ongville Melody McDonald MANAGER DIRECTORS Manuel Aranda, Jr. Additionally, the BLM is concerned with the adequacy of the EIS based on the comments from the Center for Biological Diversity, and a recent case holding from the Ninth Circuit on z similar factual situation in Arizona. Our meeting of October 28" was designed to get the two federal agencies communicating with each other productively again on processing the Wash Plan, and to flush out exactly what defects USF`,VS found with the plan it had helped develop for land uses after the exchange. We also sought, and received. technical comment on the HCP. Attached is the first formal response that we have received from the USFWS regarding their views on the overall plan and what is needed to complete the federal review process. At our October 28'h meeting, the USFIA'S and the BLM did offer an approach to changing the current documents in manner that would remedy the existing problems, as they see them. Their proposed approach would entail preparing a new draft EIS that presents the land exchange and the HCP as combined projects. The new draft EIS would include an expanded alternatives analysis for the EIS and a full environmental analysis of "Plan A ". The USFWS and the BLM would be "co -lead agencies" for the NEPA document. This approach offers the benefit of providing a single NEPA compliance for all federal actions involved in implementing the Wash Plan, and it would greatly simplify the Section 7 consultation process associated with the land exchange. (Indeed, this was our original approach, before USFWS directed us in 2006 to process the Land Exchange and ESA permitting separately.) The approach carries the burden, however, of the need for extensive changes to the HCP, and EIS.. We have reviewed the changes the federal agencies have requested, and have concluded that they are possible, but there will be considerable cost and time involved in making these changes. We are in the process of obtaining cost estimates and an estimate of the time involved in the revisions so that we can present a complete financial picture, to enable the Task Force to make an informed decision on how, or whether, to proceed. We anticipate convening a Task Force meeting in late January or early February to present this information. Thank you for your patience and support of the Wash Plan program. Please do not hesitate to contact me or Daniel Cozad, General Manager, with any questions that you may have regarding this update. Sincerely, and Sc It Wash Plan Project Manager Enclosure: USFWS letter dated December 8, 2010 Cc: Task Force Governing Committee Members QSP NT OF United States Department of the Interior FISH AND WILDLIFE SERVICE Ecological Services Carlsbad Fish and Wildlife Office 6010 Hidden Valley Road, Suite 101 Carlsbad, California 92011 In Reply Refer To: FWS- SB- 08BO318- IOTA0126 DEC 0 8 2010 Mr. Daniel B. Cozad General Manager San Bernardino Valley Water Conservation District 1630 Redlands Boulevard, Suite A P.O. Box 1839 Redlands, California 92373 Subject: Upper Santa Ana River Habitat Conservation Plan (USARHCP), Cities of Highland and Redlands, San Bernardino County, California Dear Mr. Cozad: The San Bernardino Valley Water Conservation District (SBVWCD) submitted a draft of the Upper Santa Ana River Habitat Conservation Plan (informally known as "Plan B ") to us on January 12, 2010 (ICF Jones & Stokes, dated January 12, 2010). The implementation of this proposed Habitat Conservation Plan (HCP) is dependent upon two Federal actions to be undertaken by the Bureau of Land Management (BLM): specifically, an amendment to the South Coast Resource Management Plan (RMP) for which the Record of Decision was signed in June of 1994, and an exchange of federally owned land currently managed pursuant to this RMP for land owned by the SBVWCD. The lands currently owned by the BLM proposed for exchange are designated as Areas of Critical Environmental Concern in the RMP. The draft HCP addresses the federally endangered San Bernardino kangaroo rat (Dipodomys merriami parvus, "SBKIV ), Santa Ana River woolly -star (Eriastrum densifolium ssp. sanctorum, "woolly- star"), and the slender -horned spineflower (Dodecahema leptoceras, "spineflower "), collectively referred to as the "covered species" in the draft HCP. Designated critical habitat for the SBKR is within the HCP area. The RMP addresses the woolly -star and spineflower; both of these plant species are also listed as endangered under the California Endangered Species Act. We provided written comments on the draft HCP to David Cosgrove and Randy Scott, representatives of the SBVWCD, via electronic mail on September 30, 2010. We met with Dave and Randy and personnel from ICF Jones & Stokes at various times during the months of September and October of this year; the BLM was involved in some, but not all, of these meetings. At our most - recent meeting of October 28, 2010, we were asked to identify in writing our primary concerns regarding Plan B above so that the SBVWCD and stakeholders in this HCP would have more specific direction from our agency on how to proceed. TAKE FRIDEO I& IN�M ERICA = ..�.,,,�• Mr. Daniel B. Cozad (FWS- SB- 08BO318- IOTAO126) 2 We provide the following information in keeping with our responsibilities under the Endangered Species Act of 1973 (Act), as amended (16 U.S.C. 1531 et seq.), and in keeping with our agency's mission to work "with others to conserve, protect, and enhance fish, wildlife, and plants and their habitats for the continuing benefit of the American people." Plan B is primarily a management -based HCP. We have agreed that management to benefit the covered species on Federal lands is an acceptable part of the overall, broader conservation strategy; however, because the loss of species and their habitat would be into perpetuity, the assurances of long -term conservation and management of lands to offset these losses must be into perpetuity as well. To date, the BLM and our agency have not yet determined how such protection and management assurances could be provided on public lands. A sufficiently robust management plan to address the management -based aspects of the conservation strategy in Plan B is currently lacking in the draft HCP. Habitat management to benefit the proposed covered species would be experimental in nature. Although our agency is working with the U.S. Army Corps of Engineers (Corps) on the implementation of a long -term management plan for these species within the Woolly -star Preserve Area which is within the boundaries of Plan B, some of the experimental manipulations of habitat are just being initiated and no conclusive results have yet been obtained. Financial assurances that the proposed management would be carried out are also needed. An Implementing Agreement that identifies the means by which those financial commitments would be met will be necessary before the HCP can be circulated for public review. We are aware that the mining stakeholders in Plan B, Robertson's Ready Mix (RRM) and CEMEX, are proposing to pursue mining on privately -owned lands within the Plan B boundary and are beginning the pre- application phase with the Corps for issuance of a § 404 permit from pursuant to the Clean Water Act [33 U.S.C. § 1251 et seq. (1972)]. Representatives of RRM and Cemex have stated that they consider this proposal an interim strategy until the Federal actions and the HCP process are completed. If so, we anticipate that our agency would be asked to consider a proposal to mine within the Plan B boundary under section 7 of the Act. If implemented, this activity would result in significant revisions to the draft HCP. We were asked to provide this information in part, so that your agency and the Plan B stakeholders could better - consider future financial commitments that may be needed in order to complete the HCP process; specifically, document preparation. In addition to the consideration that should be given to the proposal to mine on private lands within the Plan B boundary, we strongly recommend that serious consideration be given to the development of the critical management aspects of Plan B and a realistic timeframe for implementation of the BLM actions. Should the HCP process move forward, our agency is considering including our evaluation of the draft HCP in a single, revised NEPA Environmental Impact Statement for the BLM's proposed amendment of the RMP Amendment and exchange of Federal lands. Mr. Daniel B. Cozad (FWS- SB- 08B0318- 1OTA0126) We are available to assist in further discussions regarding the above. Any questions or comments regarding this should be directed to Nancy Ferguson at (760) 431 -9440, extension 244. Ke ey As 'stant Field Supervisor cc: John Kalish, Bureau of Land Management, Palm Springs, California David B. Cosgrove, Rutan & Tucker LLP, Costa Mesa, California Christine Geoyvaert, Robertson's Ready Mix, Corona, California Scott Hess, Cemex, Moorepark, California 93020 Robin Maloney- Rames, California Department of Fish and Game, Ontario, California J4ER CONS ER VArl0,V O /S �P "p, Uq NAME IS OUR Wssko January 14, 2011 General Manager East Valley Water District PO Box 3427 San Bernardino, CA 92413 SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT Established 1932 1630 West Redlands Boulevard, Suite A Redlands, CA 92373 -8032 (909) 793 -2503 Pax: (909) 793 -0188 RE: Status Report on Wash Plan Activities Dear Sir or Madam, P.O. Box 1839 Redlands, CA 92373 -0581 Email: info @sbvwcd.c.st.ca.us www.sbvwcd.est. ca.us It has been a several months since the last Wash Plan Task Force meeting and I believe that a brief status report on Wash Plan activities is in order to keep you informed of our progress. You will recall that at the March 04, 2010 Task Force meeting, Water Conservation District staff reported that the draft Habitat Conservation Plan (HCP) had been completed and that the administrative draft Final Environmental Impact Statement (EIS) on the Land Exchange had been submitted to the BLM for approval and public release. The BL,\4 did issue the EIS, and public comment was received, and draft responses were prepared. BLM also initiated informal consultation with the U.S. Fish and Wildlife Service (USFWS) on the EIS. A preliminary review draft of the HCP had been submitted to Nancy Ferguson with USFWS back in September, 2009, and up until September of this year, and the District had been awaiting the results of her review. The final steps in the approval process, both in terms of finalizing the EIS and ultimately issuing the ESA incidental take permits, primarily hinge on the USFWS. You may recall that discussion at the March Task Force meeting also focused on current fiscal issues associated with the Wash Plan. Based on the presentation at the Task Force meeting, the governing committee recommended that the District invoice Task Force members for future project management costs and any other anticipated costs necessary to complete the Wash Plan, and obtain the incidental take permits required for project implementation. The Task Force directed the District to make a careful estimate of final project completion costs, given the sensibilities of any additional funding requests, in the current fiscal climate. In order to prepare a reliable estimate of future costs, the District was awaiting USFWS feedback on the HCP and the Section 7 process. Unfortunately, we had great difficulty engaging the USFWS in completing the Wash Plan review process, until recently. After several requests for a meeting, we finally met on September 9'n with Ms. Ferguson and her new boss, Assistant Field Supervisor Ken Corey, at a meeting also attended by the BLM. We have had a series of meetings with the BLM and the USFWS since September, with the last meeting on October 28'h The direction and feedback we have received from USFWS was not what we had hoped, and unfortunately not consistent with representations USFWS had made through the many years of negotiating the compromises on mining and mitigation properties through the development of the Wash Plan. The bottom line is that the USFWS will not support the land exchange as it is presented currently configured, and will require extensive revisions to the HC;P. Additionally, the BLM is concerned with the adequacy of the EIS based on the comments from the Center for Biological Diversity, and a recent case holding from the Ninth Circuit on a similar factual situation in Arizona BOARD Richard W. Corneille Arnold L. Wright David F. Raley GiSNF.RAI. Daniel B. Cozad OP Clare Ilenry Day John Longville Melody McDonald MANAGER D]RP,CTURS Manuel Aranda, Jr. Our meeting of October 28'h was designed to get the two federal agencies communicating with each other productively again on processing the Wash Plan, and to flush out exactly what defects I SFWS found with the plan it had helped develop for land uses after the exchange. We also sought, and received. technical comment on the HCP. Attached is the first formal response that we have received from the USFWS regardin.2 their views on the overall plan and what is needed to complete the federal review process. At our October 28th meeting, the USFWS. and the BLM did offer an approach to changing the current documents in manner that would remedy the existing problems, as they see them. Their p-oposed approach would entail preparing a new draft EIS that presents the land exchange and the HCP as combined pro iects. The new draft EIS would include an expanded alternatives analysis for the EIS and a full environmental analysis cf "Plan A ". The USFWS and the BLM would be "co -lead agencies" for the NEPA document. This approach offers the benefit of providing a single NEPA compliance for all federal actions involved in implementing the Wash Plan, and it would greatly simplify the Section 7 consultation process associated with the land exchange. (Indeed, this was our original approach, before USFWS directed us in 2006 to process the Land Exchange and ESA permitting separately.) The approach carries the burden, however, of the need for extensive changes to the HCP, and EIS.. We have reviewed the changes the federal agencies have requested, and have concluded that they are possible, but there will be considerable cost and time involved in making these changes. We are in the process of obtaining cost estimates and an estimate of the time involved in the revisions so that we can present a complete financial picture, to enable the Task Force to make an informed decision on how, or whether, to proceed. We anticipate convening a Task Force meeting in late January or early February to present this information. Thank you for your patience and support of the Wash Plan program. Please do not hesitate to contact me or Daniel Cozad, General Manager, with any questions that you may have regarding this update. Sincerely, Rand sc tt Wash Plan Project Manager Enclosure: USFWS letter dated December 8, 2010 cc: Task Force Technical Committee Members United States Department of the Interior ° FISH AND WILDLIFE SERVICE - ° Ecological Services a� N 3'O� Carlsbad Fish and Wildlife Office 6010 Hidden Valley Road, Suite 101 Carlsbad, California 92011 In Reply Refer To: F WS- SB- 08B0318 -1 OTAO 126 DEC 0 8 2010 Mr. Daniel B. Cozad General Manager San Bernardino Valley Water Conservation District 1630 Redlands Boulevard, Suite A P.O. Box 1839 Redlands, California 92373 Subject: Upper Santa Ana River Habitat Conservation Plan (USARHCP), Cities of Highland and Redlands, San Bernardino County, California Dear Mr. Cozad: The San Bernardino Valley Water Conservation District (SBVWCD) submitted a draft of the Upper Santa Ana River Habitat Conservation Plan (informally known as "Plan B ") to us on January 12, 2010 (ICF Jones & Stokes, dated January 12, 2010). The implementation of this proposed Habitat Conservation Plan (HCP) is dependent upon two Federal actions to be undertaken by the Bureau of Land Management (BLM): specifically, an amendment to the South Coast Resource Management Plan (RMP) for which the Record of Decision was signed in June of 1994, and an exchange of federally owned land currently managed pursuant to this RMP for land owned by the SBVWCD. The lands currently owned by the BLM proposed for exchange are designated as Areas of Critical Environmental Concern in the RMP. The draft HCP addresses the federally endangered San Bernardino kangaroo rat (Dipodomys merriami parvus, "SBKR" ), Santa Ana River woolly -star (Eriastrum dens folium ssp. sanctorum, "woolly- star "), and the slender -horned spineflower (Dodecahema leptoceras, "spineflower "), collectively referred to as the "covered species" in the draft HCP. Designated critical habitat for the SBKR is within the HCP area. The RMP addresses the woolly -star and spineflower; both of these plant species are also listed as endangered under the California Endangered Species Act. We provided written comments on the draft HCP to David Cosgrove and Randy Scott, representatives of the SBVWCD, via electronic mail on September 30, 2010. We met with Dave and Randy and personnel from ICF Jones & Stokes at various times during the months of September and October of this year; the BLM was involved in some, but not all, of these meetings. At our most -recent meeting of October 28, 2010, we were asked to identify in writing our primary concems regarding Plan B above so that the SBVWCD and stakeholders in this HCP would have more specific direction from our agency on how to proceed. TAKE PRIDE "�_�, ., INAMERtCA .� Mr. Daniel B. Cozad (FWS- SB- 08BO318- 1OTA0126) 2 We provide the following information in keeping with our responsibilities under the Endangered Species Act of 1973 (Act), as amended (16 U.S.C. 1531 et seq.), and in keeping with our agency's mission to work "with others to conserve, protect, and enhance fish, wildlife, and plants and their habitats for the continuing benefit of the American people " Plan B is primarily a management -based HCP. We have agreed that management to benefit the covered species on Federal lands is an acceptable part of the overall, broader conservation strategy; however, because the loss of species and their habitat would be into perpetuity, the assurances of long -term conservation and management of lands to offset these losses must be into perpetuity as well. To date, the BLM and our agency have not yet determined how such protection and management assurances could be provided on public lands. A sufficiently robust management plan to address the management -based aspects of the conservation strategy in Plan B is currently lacking in the draft HCP. Habitat management to benefit the proposed covered species would be experimental in nature. Although our agency is working with the U.S. Army Corps of Engineers (Corps) on the implementation of a long -term management plan for these species within the Woolly -star Preserve Area which is within the boundaries of Plan B, some of the experimental manipulations of habitat are just being initiated and no conclusive results have yet been obtained. Financial assurances that the proposed management would be carried out are also needed. An Implementing Agreement that identifies the means by which those financial commitments would be met will be necessary before the HCP can be circulated for public review. We are aware that the mining stakeholders in Plan B, Robertson's Ready Mix (RRM) and CEMEX, are proposing to pursue mining on privately -owned lands within the Plan B boundary and are beginning the pre - application phase with the Corps for issuance of a § 404 permit from pursuant to the Clean Water Act [33 U.S.C. § 1251 et seq. (1972)]. Representatives of RRM and Cemex have stated that they consider this proposal an interim strategy until the Federal actions and the HCP process are completed. If so, we anticipate that our agency would be asked to consider a proposal to mine within the Plan B boundary under section 7 of the Act. If implemented, this activity would result in significant revisions to the draft HCP. We were asked to provide this information in part, so that your agency and the Plan B stakeholders could better - consider future financial commitments that may be needed in order to complete the HCP process; specifically, document preparation. In addition to the consideration that should be given to the proposal to mine on private lands within the Plan B boundary, we strongly recommend that serious consideration be given to the development of the critical management aspects of Plan B and a realistic timeframe for implementation of the BLM actions. Should the HCP process move forward, our agency is considering including our evaluation of the draft HCP in a single, revised NEPA Environmental Impact Statement for the BLM's proposed amendment of the RMP Amendment and exchange of Federal lands. Mr. Daniel B. Cozad (FWS- SB- 08B0318- 1OTA0126) We are available to assist in further discussions regarding the above. Any questions or comments regarding this should be directed to Nancy Ferguson at (760) 431 -9440, extension 244. Field Supervisor cc: John Kalish, Bureau of Land Management, Palm Springs, California David B. Cosgrove, Rutan & Tucker LLP, Costa Mesa, California Christine Geoyvaert, Robertson's Ready Mix, Corona, California Scott Hess, Cemex, Moorepark, California 93020 Robin Maloney - Rames, California Department of Fish and Game, Ontario, California General Manager East Valley Water District 3654 E. Highland Ave #18 Highland, CA 92346 Dear General Manager: January 21. 2011 Thank you Sir for your quick response to my letter dated January 14, 2011. Your employee "Norm" was at our home yesterday and explained the situation with the Pressure/air in our water pipes. He also turned on the Fire Hydrant that is in front of our home for a time. He also checked the water pressure and tested our water regulator to our home. Thank you again for your response. With an employee like "Norm" you are blessed to have such knowledgeable and concerned employees who set a high level of performance. He is a credit to your pany, East Valley Water District. Sincerely yours: CWO Daniel "Morgan" Dyer, USMC (Ret) cc: Larry Mc Callon, Mayor of Highland rya.,; z 4 ?011 '?�` Valiey Water District '22(0 111 WIFatierr� �oursll�nINO 0 ; 1051C 110 To learn more about the tours... \ Sponsorship opportunities are call 916-444-6240 visit our websitc available for the 2011 tours' www. watereducation.org /tours With our new sponsorship program, we have a variety of Registration fee for the 3 -day, 2 -night tours is: One person, single occupancy room - $695 benefits for tour sponsors. Two people sharing a room - $595 each Registration fee for the 2-day, 1-night tours is: Publicity on the tour material, our website, Aquafornia and Faceboolt One person, single occupancy room - $450 Free tour seats and special event invitations for your company and Two people sharing a room - $375 each clients are included. Discounts are available for registering four or more people per agency. To tailor the benefits to your company's interests, we have three sponsorship MCLE (attorney) credits are available for levels: Traveler, Adventurer or Trailblazer. Being a tour sponsor is a great an additional fee. Water plant operator marketing opportunity and a chance to be part of a valuable educational DHS units also are available for $100 per tour. experience that the participants remember and talk about with their peers. Register early, seating is limited. For more information about tour sponsorship, contact Rebecca Scott at 916- 444 -6240 or rscottc�watereducation.org 0VZ9-tibb-916 Iles lalgeilene aie sawun:ltoddo dlysjosuodS woa eiwolenbe'mmm Sm uopeanpasaLem'mmm bL9S6 YD 'owaweueS LL£ ai!rS'322RS N LLL IN01J,VQNf103 NOLLVDf,(]a YJ -.VA', otroN riwa3e iilv�'olN3wva�Ys OIYd 3'JYlSOe'S fl �ao riioaaNON 1 .I him A r the water P-aucation vounaations tours are jteia trips roar offer participants a firsthand look at the water facilities, rivers and regio us critical in the debate about the future Of water resources. Issues of water supply, water quality, environmenta! restoration, flood management, ground- water and water conservation are addressed by a wide range of speakers representing different viewpoints. The tours are praised for being balanced, thorough and Fun. Participants learn about local, stare anal f-deral issues from experts on all sides. Time for socializing and networking is included :r. he acrion- packed itineraries. Six tours will be offered in 2011. Tour registration fee includes transportation and lodging while on tha t yr meals and background materials. Attorneys can earn continuing legal education credits for an additional fee. Water plant or wastewater plant operators also can earn California Department of Health Services continuing education credits. NOTE: Tour stops arc subject to change because of new issues and because of limited access based on poser ral ecurity concerns. Lower Colorado t ieer Tour - This 3 -day, 2 -night tour follows the cuursc of the lower Colorado '�., ei Through Nevada, Arizona and California, and includes a private tour of Hoover Dam. Tour stops include the Yuma Desalting Plant, farms in the Imperial and Gncicl.a valleys, MWD's Gene Village, the All- American Canal lining and Drop 2 pm,ecrs and the Salton Sea. Issues discussed include drought management, the C, n ral Arizona Project, southern Nevadas water needs, U.S.- Mexico border nsuo, endangered species and tribal water rights. The tour begins in Las Vegas and erds .., .a:dornia's Ontario International Airport. Central Valley Tour - This 3 -day, 2-nighr tour travels the length of the San Joaquin Valley, gi,ing .,dr-icipanrs a clear understanding of the State Water Project and Central Vallcp -'n> ec. Stops include the Kern County Water Bank, the San Joaquin River, Termino.s Dam, Mendota Pool, Friant Dam, San Luis National Wildlife Refuge and San Luis Reservoir. Issues of growth, water supply, flood management, groun.h atrr ranking, wetlands, salmon restoration, and agricultural supply and drainage u e dscussed on this tour, which begins and ends in Bakersfield. Flood Management Tour - This 2 -day, l -night tour begins at the American River and uave6 alone; the Bear, Feather and Sacramento rivers into the Delta to view Sacramenrds Hood management system. Stops include the State - Federal Flood Operations Center, Folsom Dam, Fremont Weir, Sacramento Weir, Yclo Bypass, and project and nonproject Delta levees. Issues of vegetation on levees and erosion control, urban and no , than levees and land use, sea level rise and responding to flood emergencies ill be discussed. The tour begins and ends in Sacramento. Bay -Delta Tour - Ih.s 3 -day, 2 -night tour takes participants to the heart of California water p. It- - the Sacramenro-San Joaquin Delra and San Francisco Bay. Stops include :h. I )cl :a Cross Channel, the City of Stockton, Bay -Delta model in Sausalito, Los S'agor n i2rervoir and Suisun Mush. Issues discussed include Delta planning initiatives.'.. are project operations, fish passage, ecosystem restoration, levees and flood m.nazement, Delta agriculture, drinking water quality and water supply reliability. 1h-- ro.a begins and ends at Sacramento International Airport and includes a ferry ride across San Francisco Bay. Northern California Tour- This 3 -day, 2 -night tour travels the length of the Sacramento Valle,,, :u q,.r source of water for California. Stops include Oroville and Shasta dams, 3c, 13 off Diversion Dam, the Feather River Fish Hatchery, Battle Creek Dam _r,,� :I sire, GCID's fish screen and Delevan Wildlife Refuge. Other highlight m, t de ,t houseboat cruise on Shasta Reservoir. Participants learn about water management, farming, flood management, groundwater management and c.- it ., n.trve use, and salmon restoration. The tour begins and ends at Sacramento Inremnio ,al Airport. San Joaquin Ritter Restoration Tour - This 2 -day, 1 -night tour explores challenges assoaau,t ., rth restoring (lows and a Chinook salmon fishery to the San Joaquin R„e, o n I clow Friant Dam to the confluence with the Merced R, r. i nn stops include the San Joaquin OVIT fish hatchery, Mendota pool, various places along the river under considerauo - h a o-watering, diversion structures, and the Merced National Wildlife Refuge. Participants learn about water proiea trer. [ions, salmon spawning and rearing, L; k; 11ON agricultural diverse m . u,d gravel mining impacts. The tour FOUNDATION begins and ends in Association of California Water Agencies REGISTER TODAY! www.ocwa.com .-4n ACWA's 2011 Washington, D.C. Conference March 1 - 3, 2011 Washington Court Hotel, Washington, D.C. Association of California Water Agencies �'.. Since 1910 910 K Street, Suite 100, Sacramento, CA 95814 -3577 * * * * * * ** *AUTO * *3 -DIGIT 924 Mr. Robert E. Martin East Valley WD PO Box 3427 San Bernardino CA 92413 -3427 �Il�lldlr. mhl. 1. nttlllul .qu.l.11.l.l..p.lgl,.lttlull. Presort First Class U.S. Postage PAID Permit 949 Sacramento CA :�,zter �istrici t PRE IIMINARY AGENDA Tuesday March 1 6 - 8 p.m. Opening Reception ((onference attendees & spouses are invited. Others by invitation only.) Wednesday, March 2 8:30 - 9:30 a.m. Welcome, ACWA President, Paul Kelley Full Breakfast & Keynote Speaker 9:45 -11:45 a.m. Obama Administration Speakers Noon -1:30 P.M. Senate Lunch Program 1:50 p.m. Group Photo Capitol Visitors' Center Steps 2:15 - 5:15 p.m. House Speech Program 5:30 - 7:30 p.m. Congressional Reception Thursday March 3 8 - 9:15 a.m. Breakfast & Closing Speaker 9:15 a.m. Issue Group Leaders' Panel 10 a.m. Conference Adjourns WHO IS ELIGIBLE FOR ACWAADVANIAGE PRICING? The following people are eligible for ACWA Advantage pricing: • Any ACWA memberorganization's office rs /directors. • Any employee on an ACWA public agency member, Affiliate or Associate organization's payroll. • Any individual or honorary life member. • Any ACWA board member whose fee is paid for by a member agency. • Any state or federal administrative or legislative personnel in elective, appointive or staffing positions. • Staff of ACWA /1PIAWater Education Foundation or California Water Awareness Campaign. If you are interested in learning more aboutjoining ACWA, contact Linda Anderson at (916) 441 -4545 or lindaa @acwa.com. CHANGES & CANCELLATIONS: Changes and cancellations must be submitted to elliem @acwa.com. The cancellation deadline is 4:30 p.m. (PST), February 4, 2011. There is a $50 handling fee on all cancellations priorto this date. Credit card /check registration fees (less the $50 handling fee) can be refunded until 4:30 p.m. (PST), January 28. Thereafter, refund credit vouchers will be issued January 29- February 4, 4:30 p.m. (PST). There will be no refund transactions made during the event. Upon receipt of the cancellation, you will receive an e-mail confirming the cancellation. If you do not receive a cancellation confirmation, please contact ACWA at (916) 441-4545. Otherwise, you will be responsible for remaining monies due. Cancellations received after 4:30 p.m. (PST), February 4, 2011, will not be refunded. SUBSTITUTIONS: Substitutions from the same organization are accepted. A $25 handling fee will be applied. Substitution requests should be submitted to elliem @acwa.com. Please notify, ACWA of substitutions by 4:30 p.m. (PST), February 4, 2011. Afterthat date, they will need to be handled on site. HOTEL INFORMATIOIJ A block of rooms has been reserved for ACWA at the Washington Court Hotel, which will be reserved on a first come, first - served basis. The Washington Court Hotel will accept reservations in the ACWA room block until January 31, 2011. After this date, the rooms will be released for general sale. After January 31, the hotel will accept reservations based on room and rate availability. Additionally, should our block fill prior to the cut -off date, reservations will be accepted based on room and rate availability. You should not make a hotel reservation before you are registered with ACWA for the D.C. Conference. SINGLE /DOUBLE ROOM RATE: $299 HOTEL ADDRESS: Washington Court Hotel 525 New Jersey Ave., N.W. Washington, D.C. 20001 Reservations: (800) 321 -3010 Phone: (202)628-2100 If you have a disability thatmay require accommodation to assure your full participation, please contact Ellie Meek of the ACWA staff at (916) 441 -4545, or toll free at (888) 666 -2292 to discuss your needs. 4 fllf� Fr, �, r L - w i -< ACWAfs 2011 Washington, D.C. Conference Preregistration Washington Court Hotel • Washington, D.C. • March 1 -3, 2011 • • • • PREREGISTRATION & CANCELLATION DEADLINE IS 4:30 P.M. (PST), FER. 4, 2011. OFFICE USE ONLY - DC11 Registration forms received after Feb 4 will be retumod egaidless of postmark There is a $ 50 ha. ' gee on all ENT —_ cancellations prior to this date. Credit card /check reins' it, (in fees (less the 550 handling tee: can t :etn ^ded until DATE - -- 4:30 p.m. (PST), Jan. 28. Thereafter, refund credit vci;cI, s will be issued Jan 29 -Feb. 4, 4_u6 p m Fill in Completely - Please Print /Type Clearly *Required Fields (If bringing a guest, guest's name and m. address are reouired as n -ell ) ] My info has changed. Please update it. 'Name on Badge to Read Cuc;r 535 fee if —attending, (;uestE- mail: MUST bernttemmnorrattendeese -r„ain • Title • Organization • Address • City State Zip • Phone: ( ) FAX: r ) `Attendee E -mail: Credit Card Payment Information Ple_ so• ('targe my fee to my credit card: wi Card Number: Exlr I)a e LILL Amount: $ Csi-dholder's Name (as seen on card): ' Confirmation E -mail: If registering on someone's behaB please be sure to mdudevOUR c -mad Signamie: address here and a copy of the ((Irl 11ianon email wdI be sent to you HOTEL INFORMATION: Washington Court Hotel, 525 New Jersey Ave. N.W., Washington, D.C. 20001 -1 ;'' Phone: 800- 321 -3010 Group Rate: $299 Single /Double. The cut of' date to receive this special rate ie January a1, 2011. Preregistration PACKAGE — For ACWA public agency members, atfiliates r, .associates only (Includes registration & all meals. Does not include guest registration.) Not available on -site. (20) .... $565 $ Conference Registration (2n g Advantage * ........................ Standard .......................... Guest (Non - refundable) (22) ........ Includes Opening & Congressional Receptions but other meal (unctions not included ........................... ........................... ............................... Preregistration $485 $725 $35 On Site ($520) ($780) ($45) Amount $ $ $ Daily Conference Registration Preregistration (Advantage) (Standard On (Advantage) Site (Standard) Amount Meal functions not included ❑ Wednesday, March 2 (23) ............. ....... $275 $41 ` $295 $445 $ ❑ Thursday, March 3 (24) ... I ........... ....... $230 $34` $250 $375 $ MEAL IFUNCTiONS Quantity Preregistration On Site Amount Tuesday, March 1 Included Included Opening Reception )3m ............... ............... . Wednesday, March 2 $40 ($45) $ Breakfast (31) ........................ .............. _ $50 ($55) $ Luncheon (32) ...... .. ............................... — Included Included Congressional Reception (33) ......... ............... Thursday, March 3 $40 ($45) $ Breakfast (34) ....................... .............. -. *People eligible tot ACWA advantage pricing include. el�� ,C AA member organization's offlcee'cen r'on n% employee on an ACWA public agency member, affiliate or associate organ , aeon's payroll; any memorial or honour r r.ro ,'.e... het; any ACWA TOTAL $ board member whose fee is pad for by a member age,rc, any state or federal admrmsuaove n, Irgslav;c _t vmnel in elective, appointive or staffing positions; staff ofAC WA/IPIA. War-. Idoca tion Foundat ion, or California tNarr A .� r- rs, Campaign FMake checks payable to A( V.''A, and send to. ACWA, P.O. Box 2408, S; , �, n-ento, CA 95812 -2408. or FAX to (916) 325 -2316 If you mail this form, please do not also fax to avoid duplicate registration. Questions? Contact ACWA at 1916) 441 -4545, toll free (888) 666 -2292 r -mail: events ®acwa.com. The Colorado River is a lifeline to 25 million people in the Southwest. In the Lower Basin, virtually every drop of the river is allocated and yet demand is growing and the drought is continuing. How the Lower Basin states — Arizona, California and Nevada — use and manage this water to meet agricultural, urban, environmental and industrial needs is the focus of this tour. The tour travels along the Lower Colorado River from Hoover Dam to the Salton Sea and the Coachella Valley. The tour is a must for water policy- makers, water district managers and directors, lawyers, consultants, journalists, and anyone interested in Colorado River issues. The tour is cosponsored by the Bureau of Reclamation, Lower Colorado Region. Tentative stops: Hoover Dam, and a boat ride on Lake Mead Central Arizona Project facilities Havasu National Wildlife Refuge Metropolitan Water District of Southern California's facilities Farms in the Imperial and Coachella valleys The Salton Sea Drop 2 Reservoir Site All- American Canal lining project Yuma Desalting Plant Ilul ^lull, ,d111111I I,Illrgml Pppp1.14•p .... llhd L09Z-94£Z6 VO ONV-lH`JIH 91 31S 3AV ONV1451H 499£ N3`JVNVW NIWOV '� OIR I699M �(911¢A 1163 N3SNOIi10N3H 3NI ZZ00 17 T Z NVf 1 EZ6119io-s. oinv......... OAAR 81 ute nN tlWaaa 'JI'IV )'OLN3WVN )VS Oltld dDVltiOd 'S !1 oao LI IoN<tuoN fo •uoyl eanpaaal ens nmmm7 IF aug-uo talsi�a� woa enuolenbe-mmm Sao uo!le3npaaatem-mmm xe) 669Z-866(916) 06Z9-666(916) 61996 VD'oluaweaaeS ZI£ annS'laaalS x ZCL NoUVCIN110J NOLLVJncIg SUVA& WWI LddL Lower Cotordo I•,ver. Tour March 16-18,2011 (field Trip) ;•," 41 �r N. i� (`o r mo or,L!dl ' "i if$',4J /,jam / Drought conditions and shortage criteria in the Colorado River Basin Lower Basin state perspectives - Arizona, California and Nevada The Quantification Settlement Agreement (QSA) Drop 2 Reservoir Site and Lining the All - American Canal Negotiations with Mexico -.r • "• Agricultural water use, drainage issues and salinity Urban growth and supply planning Endangered species and multi- species plan in, Salton Sea restoration project issues Climate change Yuma desalting plant trial operation '� Y '•_ - r'rr t l�i ' j� � This fast -paced tour begins at 7:30 am , Wednesday, Man h 16 at the jtflll� �j ,j "' TreaSUrc Island Hotel in Las Vegas and will and at acn'I,, ',, tcly 6 p.m., Fridav, March 18 at Ontario International Airport Registration Sb95 per person, single occupancc room "; r.'ch for two people sharing a ro,im. Register four or more people fora disc ni t single occupanev . room, ?6: -. �t for Lost: J, I' inrah. Ira n.prn t.tl ion aril h,,gil.i, .� I , . tfc Hampton I ,I in Lake Havasu Citv (Wednesd t+) t ui the I . geld Inn & Suites by Marr ott In IJ Centro (fhursdw) while on the 10111 ,: ILI 1 ants are r rLit respons:o:c 'nr their own transportation to Las Vcqn. n c ,. tie from Ontario ,i To registe ^, return form to the Foundation with � t+mrtt •+.d rescrvahons accepted +vrh credit card or purchase orders. Or, rcgi,n I Inay on Zinc y{,. ' •f - at www, c- tcreducation erg/ tours All reservations are on a first -came, first - served basis. 4' Deadline to cancel and receive a full refund is 5 p.m. February 28 due to hotel, meal acd transportation bookings. Refund mquc : t )0 in writing. ,3 .r Substitu000, may be made at any time. s For those ar, -wing in Las Vegas March 15, the Treasure 1,1 Hotel is holding a limited numher of roams To reserve a room, call the h m I it I- 900 - 944 -7444 before March 3 and request the Foundation tour gre.:r , :,'c ^1 $ I11 rate, This extra night s not included in the cost of the tour a k r: This acnvitc has been approved for Minimum Conn i- in,, I_: gal Education State Bar California fhc tour al.. orcrs Czlifornia ;� - ,� -.1 S :.e�.•�y (MCLE)<ndi[L +y the of Departrnen, x Public Health Continuing Education u, Is , cater plant or r ,y wastewater plant operators licenses. Ihere is an addrt,•r d 56 :0 fee to register for these rredt[s. Contact the Foundation for more eetr k Additional information and an itinerary will be bent al, r-,+ nately one month before the :our Please notify the Foundation poor to t n :-. you have a e - medical ain,hnnn or other special need Lom lob Title(s)_ Organization Address City Phone ( Email State Zip _ Dover's License /I.D. Card No.(s) _ State Dates) of Birth (necessary for wcurit% charance at wine taohtiesl Enclosed is on fee J $695 each, single uccupanci room, J -625 each, it 4 or more are regutenng J $595 each for two people sharing a rnnnn; J'S)00 addemn: I -nr credits. _CLE _DPH Total enclosed $ For payment by: J Visa J MasterCard J American Expo" PO Nu. _ Credit Card No. — __ Exp. date._ LAM W frR EDUr'AI ON FOUNDATION 'I K Street, Suite 317 Ss, ramento, CA 95814 a'.$) 444-6240 q'6) 448 -7699 fax ..,.v. vatereducation.org ,.,, aquaforma.com (must be signed to process I 'i ,. e order) 5 p.m. Febnian 28 is the last day to cancel and receive a [Lill rIts I I Behind request must be hn u-n[nng Suh.un.: i . L i. be made at anv tine. Ildlel�l�lll! rvlllnlellhllllelluueurldllll11heedemll .. L09Z-9tEZ6 VO'pueiy8lH 81 a1S any puel�1H!H V99£ laulsl4aseMhalleAIW3 �elaiaas /�a eueVYlejauag uOJeW 31jagc?J 'jIAI EZ6 ilDIO-E HOS..O1f1V ..............6...E1 10IZ6 VO'o6a10 ueS 9VZ'a3S '*PAIR Jauua)i SE9Z 6u¢uu8 4snu a)nVisul Juawwanog 18007 Olb'd pue ;a!jjs.ta /ejaadS a6elspdO)d plepuel$ pevosa�d APRIL 28 -29, 2011 Hyatt Grand Champions Resort Indian Wells, California DON'T MISS THIS INCREDIBLE VALUE: Only $139 per night stay at the FOUR STAR HYATT GRAND CHAMPIONS RESORT in beautiful Indian Wells (Palm Springs Area) Approved for 11 Fresh Water Distribution and Fresh Water Treatment Continuing Education Units by the California Department of Public Health THE EXCEPTIONAL AGENCY For those who want a deeper, more personal and more professional understanding of local government POLICYMAKERS AND MANAGERS MEET IN SEPARATE SESSIONS over two days and finish with a joint session that completes the understanding of their roles in The Exceptional Agency. EACH SESSION IS INTERACTIVE. Sessions begin with a brief introductory talk by an expert speaker, who follows up with insightful questions. There will be sharing of experiences, discussions and debate, initiated by case studies, examples and more. EXPERIENCED SPEAKERS who work in real -world local government situations serve as instructors, commentators, and moderators of group discussions. FOR ALL THOSE INTERESTED IN BETTER LOCAL GOVERNMENT: Board members and senior managers who desire a learning experience that is beyond lectures... Certificate holders Of our seminars... New and experienced Board members and managers looking for in -depth training. JOIN CALIFORNIA'S BEST LOCAL GOVERNMENTS In -depth Advanced Studies seminars are the fruit of 42 years' experience training thousands of leaders, by the premier local government institute. EXPERIENCED FACULTY, ALL PRACTICING EXPERTS IN THEIR FIELDS Kamil Azoury General Manager /District Engineer of Goleta Sanitary District, managing operations of a collection system and regional treatment plant. Twenty years as consulting engineer in the Bay area, and served as president of statewide wastewater organizations. Bill Cooper Managed operations of Metropolitan Water District of Southern California water treatment plants, including some of the largest treatment plants in the nation. Served for many years as Director and President of the Board of Castaic Lake Water Agency, a large water wholesaler in Los Angeles County. Mark Kinsey General Manager of Monte Vista Water District, with more than a decade of experience directing the operations of a large and growing water agency serving city and county areas in Orange County. Will McMullen Management consultant with over 20 years experience, specializing in organizational and team effectiveness, process design /facilitation, training, and planning for public, private and non - profit organizations. Richard Price Chief of the San Ramon Valley Fire Protection District, a leading fire organization that has developed state -of- the -art, real -time emergency operations and extensive community outreach programs. Martin Rauch President of Rauch Communication Consultants, Inc., a full service public outreach company, leading a team that develops and conducts customized strategic public outreach programs for local governments throughout California. Glenn Reiter President of Glenn M Reiter & Associates, a San Diego based financial consu -.ing and advisory firm founded more than 30 years ago. He has served as a General Manager, Board member and consultant tot several local government organizations. IF YOU ARE NOT ALREADY CERTIFIED... ...Join thousands of local government leaders who have benefitted from our three seminar certificate program: Governance, Finance and Administration. "SDI sennnars are excellent in providing board member, i,,,� board bigGll• recommended SDI as one of the first managers and staff with the tools, regulations and melhodc In iorihes.jor me. I found it invahuable andgot me up to to Geefficient, effective and knonleclr;eable in their ro$ic. ° spre,l on cabal it is to be a board member: " D.C., North County Fire Protection District (Castroville) E.S., Leucadia Wastewater District FULL FACULTY BIOS AVAILABLE ONLINE AT SDBMI.COM THURSDAY, APRIL 28, 2011 DAY 1 • MORNING SESSION: How do you build and maintain a genuine managementteam? • Providing leadership that increases the public value of your agency. • Defining the management process; planning, goals and objectives, accountability, and ensuring organizational clarity. • Developing a culture of personal responsibility; empowering others; motivation, inspiration and organizational pride. • Creating a "mindful infrastructure" to improve service reliability. DAY 1 • AFTERNOON SESSION: What are the most effective ways to manage schedule and cost? • Monitoring work performance, schedules, making corrections to get back on track, involving and motivating supervisors and employees to meet goals. • Collect cost information, integrate with budget, spot trends, make corrections. • Making decisions about insourcing vs. outsourcing: when and why to do it. How to communicate your decisions to the Governing Board and the staff. THURSDAY, APRIL 28, 2011 DAY 1 • MORNING SESSION: How to assure that the agency's mission is fulfilled • What is the best process for developing a strategic plan: mission, vision goals and objectives? • Establishing agency standards and values — who we are, what we do, how we work. • Process for making good decisions. • Communicating plans, decisions, and results to the public. DAY 1 • AFTERNOON SESSION: How to translate governing board goals into achievements • Process for selecting the manager and evaluating the manager's performance. • Defining the job description for the manager: management responsibilities, authority, limits, reports to the Board. • Monitoring progress and status of goal achievement. Integrate with budget goals, spotting trends, making corrections. • Clarity, choices and alignment. • Planning for outcomes. • Measuring and communicating progress, navigating changes. FRIDAY. APRIL 29, 2011 DAY 2 • AFTERNOON SESSION: FRIDAY, APRIL 29, 2011 DAY 2 • MORNING SESSION: How should the manager relate to the governing board? • Agency by -laws to establish board /GM /internal agency "governance" policy & procedures. • Developing effective business relationships with the Board. Manager's report, committees, workshops, strategic planning, and budget meetings to define relationships, positions and attitudes. • Developing effective personal relations: one -on- one, luncheons, tours, conferences. • Balancing business - personal relationships. • What to do with problem policy makers • Dealing with micromanagement by Board members. FRIDAY, APRIL 29, 2011 DAY 2 • MORNING SESSION: Building effective relationships for a successful agency • Create good Board -to -Board relationships: establishing codes of conduct, respect, listening, resolving disputes, etc. • The role of the Board chair: defining a complex job, needed skills for resolving problems, establishing the right agendas, etc. • Establishing the right relationships with the manager. • Micromanagement: the dangers, what to do about it. • Communications with the public. A// crilical siglTsbon /d be ulleudhu,, the .special Dlslricl uurl Luca/ Goverumenl oWiAde. • Describe the exceptional agency. What are its attributes? What can policy makers and managers do to create an Exceptional Agency in the real world? • Identify real examples of exceptional agencies. • Making my own agency exceptional. What actions or changes would help make my own agency exceptional? • What I will take home. What were the issues raised during the seminar that are of greatest importance to me and my agency? M. V, Beaumont- Cherry Valley Recreation and Park District e NROLLMENT INFORMATION: �) ❑ $585 ADVANCED STUDIES SEMINAR (2 days) 31 ❑ $525 ADVANCED STUDIES SEMINAR (2 days) Special District Institute Certificate Holders C) $100 GUEST MEAL PACKAGE FOR SEMINAR 5.00 EARLY REGISTRATION DISCOUNT for options A and B cluding seminar only. (Must receive payment by March 28, 2011.1 UBTOTAL OF REGISTRATION: UBTRACT S25 (Early Registration) OTAL REGISTRATION FEE: $ $ $ LEASE FILL OUT COMPLETELY lame: Date R'vd itle: Verify DB ,gency' Certp flailing Address' lhv,# Net Paitl 'ity' Do rural tate ZiF ax: -mail: Nebsite: 3uest Name: SPECIAL NEEDS: ] Wheelchair Access ❑ Visually Impaired ] Hearing Impaired ❑I. Vegetarian Meals Dthe VIETHOD OF PAYMENT: payable to: Special District Institute ] Check Enclosed for $ Please Invoice PO# Charge: ❑ Visa ❑ M/C # h6 numbers + 3 numbers listed in the signature area on back of credo card) Billing Address for Card: State: Signature: Expiration Date: APRIL 28 - 29, 2011 HOTEL LODGING INFORMATION Hyatt Grand Champions Resort 14 -600 Indian Wells Lane radian Wells, CA 92210 reservation Telephone Numbers: 388/421 -1442 or 402/592 -6464 vebsite: http s: //r a swe b. p a s s key. c o m/g o/b cf99187 T li The Hyatt Grand Champions Resort is located in the heart of Indian Wells, California, just south of Palm Springs. With tournament - level tennis courts and a 36 hole double golf course surrounding the hotel, it is one of the desert's premium destination resorts. A special rate of 5139 single double per room per day, has been negotiated for accommodatir;ns (luring the event, and for three days before and after. Mention the Special District Institute for this discounted rate. Reservations must be made by April 6, 2011. /There area limited number of rooms in our block. Reserve early to ensure rooms are available). Resort services fee of $23 per day has been waived for this event. Amenities covered include complete access to the fitness center, scheduled exercise classes, golf bag storage and shuttle to golf course, individual tennis time, bicycle usage, internet access. local and 800 calls, incoming faxes, in -room safe, hotel games (i.e., ping pining, croquet, bocce ball). Discounted valet parking is $18 per night. CANCELLATIONS AND REFUNDS: Written cancellation received on or before April 6, 2011 will receive a refund. less a $50 processing fee. Full payment is required if cancellation is received on or after April 7, 2011 - no refunds and no credits for a future event will be granted. However, substitutions may be made at any time. A $25 fee charged for checks returned for insufficient funds or for credit cards denied. SDI reserves the right to make changes in programs and speakers, or to cancel programs, when conditions beyond its control prevail. Every effort will be made to contact each enrollee if a program is cancelled. If a program is not held, SDI's liability is limited to the refund of the program fee only. PROGRAM INFORMATION EACH PARTICIPANT RECEIVES: A comprehensive Handbook, all class materials, continental breakfast, breaks and lunch during Seminar. Lodging and other meals are rot included. GUEST MEAL PACKAGE: A guest may join you for all meals. A separate guest meal package must be purchased. NOTE: Please refer to the Special District Institute website: SDBMI.com for complete information on - eservations, cancellations and refunds. Call: 800- 457 -0237 or email: spcdistint @aol.com. 0 2535 er Blvd., Ste. 2A5 #00 San an Diego, CA 92101 619/231 -1744• Phone: 800 /457 -0237 Special District and Fax: 619/696 -1225 Local Government Institute www.sdbmi.com • spcdistint@aol.com FOR OFFICIAL USE ONLY — Date R'vd Verify DB Code p Certp lhv,# Net Paitl Ltr. Sent i Do rural APRIL 28 - 29, 2011 HOTEL LODGING INFORMATION Hyatt Grand Champions Resort 14 -600 Indian Wells Lane radian Wells, CA 92210 reservation Telephone Numbers: 388/421 -1442 or 402/592 -6464 vebsite: http s: //r a swe b. p a s s key. c o m/g o/b cf99187 T li The Hyatt Grand Champions Resort is located in the heart of Indian Wells, California, just south of Palm Springs. With tournament - level tennis courts and a 36 hole double golf course surrounding the hotel, it is one of the desert's premium destination resorts. A special rate of 5139 single double per room per day, has been negotiated for accommodatir;ns (luring the event, and for three days before and after. Mention the Special District Institute for this discounted rate. Reservations must be made by April 6, 2011. /There area limited number of rooms in our block. Reserve early to ensure rooms are available). Resort services fee of $23 per day has been waived for this event. Amenities covered include complete access to the fitness center, scheduled exercise classes, golf bag storage and shuttle to golf course, individual tennis time, bicycle usage, internet access. local and 800 calls, incoming faxes, in -room safe, hotel games (i.e., ping pining, croquet, bocce ball). Discounted valet parking is $18 per night. CANCELLATIONS AND REFUNDS: Written cancellation received on or before April 6, 2011 will receive a refund. less a $50 processing fee. Full payment is required if cancellation is received on or after April 7, 2011 - no refunds and no credits for a future event will be granted. However, substitutions may be made at any time. A $25 fee charged for checks returned for insufficient funds or for credit cards denied. SDI reserves the right to make changes in programs and speakers, or to cancel programs, when conditions beyond its control prevail. Every effort will be made to contact each enrollee if a program is cancelled. If a program is not held, SDI's liability is limited to the refund of the program fee only. PROGRAM INFORMATION EACH PARTICIPANT RECEIVES: A comprehensive Handbook, all class materials, continental breakfast, breaks and lunch during Seminar. Lodging and other meals are rot included. GUEST MEAL PACKAGE: A guest may join you for all meals. A separate guest meal package must be purchased. NOTE: Please refer to the Special District Institute website: SDBMI.com for complete information on - eservations, cancellations and refunds. Call: 800- 457 -0237 or email: spcdistint @aol.com. 0 2535 er Blvd., Ste. 2A5 #00 San an Diego, CA 92101 619/231 -1744• Phone: 800 /457 -0237 Special District and Fax: 619/696 -1225 Local Government Institute www.sdbmi.com • spcdistint@aol.com