Operating Budget and Capital Improvement Program for Fiscal Year 2018

Transcription

1 12770 Second Street, Yucaipa, California Operating Budget and Capital Improvement Program for Fiscal Year July 1, to June 30, Adopted June 20,

2 Fiscal Year Table of Contents CHAPTER ONE Table of Contents... i Introduction Overview of the Yucaipa Valley Water District Land Use within the District Governance and Management Budget Overview: Total Fund Breakdown by Division Water Division Expenditures Sewer Division Expenditures Non-Potable Water Division Expenditures Organizational Structure Water Division Line Item Summary: Water Division Budget Summary Water Division Expense Detail: Water Resource Dept; Public Works Dept Administration Dept; Long-Term Debt; Asset Acquisition Sewer Division Line Item Summary: Sewer Division Budget Summary Sewer Division Expense Detail: Treatment Dept; Administration Dept Environmental control; Long-Term Debt; Asset Acquisition Recycled Water Division Line Item Summary: Recycled Water Division Budget Summary Recycled Water Division Expense Detail: Operating Expenses Page i

3 Fiscal Year CHAPTER TWO Water Division Budget: Water Division Revenue Analysis Potable Water - Commodity Charges Construction Water - Commodity Charges Imported Water Sales San Gorgonio Pass Water Agency Imported Water Sales San Bernardino Valley Municipal Water District Potable Water - Commodity Charge Multi-Unit Discount Water Wholesale Revenue Potable Water - Service Demand Charge Fire Service Standby Fee Construction Water - Service Charge Potable Water - Service Charge Multi-Unit Discount Unauthorized Use of Water Charge Water Meter & Lateral Installation Charges Fire Flow Measurements and Reports Disconnect & Reconnect Charges Delinquent Payment Charges Management and Accounting Services Interest Earned Property Tax - Unsecured Property Tax - Secured Tax Collection - Prior Other Taxes Miscellaneous Non-Operating Revenue Water Resource Department Labor Benefits Repair & Maintenance Structures Repair & Maintenance Valves General Supplies & Expenses Power Purchases Electricity & Fuel Imported Water Purchases Licenses & Permits Laboratory Services Yucaipa Valley Regional Water Filtration Facility Operating Expenses Public Works Department Labor Benefits Repair & Maintenance Vehicles & Equipment Repair & Maintenance Valves Repair & Maintenance Pipelines Page ii

4 Fiscal Year Repair & Maintenance Service Lines Repair & Maintenance Fire Hydrants Repair & Maintenance Water Meters Fire Flow Testing General Supplies & Expenses Administrative Service Department Labor Director Fees Benefits Repair & Maintenance - Structures Safety Equipment Petroleum Products Office Supplies General Supplies & Expenses Electricity Natural Gas Dues & Subscriptions Computer Expenses Postage Education & Training Utility Billing Expenses Public Relations Travel Related Expenses Certifications & Renewals Meeting Related Expenses Utilities YVWD Services 2-57 Waste Disposal Telephone & Internet Conservation & Rebates Contractual Services Legal Audit & Accounting Professional Services Reserve Funds Water Infrastructure Replacement Insurance Regulatory Compliance Election Related Expenses Beaumont Basin Watermaster Water Division Debt Service Debt Service Principal Debt Service Interest Rate Stabilization Fund Asset Acquisition Water Division Water Resources Department Page iii

5 Fiscal Year Public Works Department Administration Department CHAPTER THREE Sewer Division Budget: Revenue Analysis Sewer Service Demand Charge Sewer Service Demand Charge Multi-Unit Discount Penalty Late Charges Other Operating Revenue Interest Earnings Property Tax - Unsecured Property Tax - Secured Tax Collection - Prior Miscellaneous Non-Operating Revenue..3-5 Sewer Treatment Department Labor Benefits Repair & Maintenance Structures Automation Control Chemicals Propane Laboratory Supplies General Supplies & Expenses Power Purchases Laboratory Services Sewage Waste Disposal - Solids Brineline Operating Expenses Sewer Administrative Services Department Labor Director Fees Benefits Safety Equipment Petroleum Products Office Supplies General Supplies & Expenses Dues & Subscriptions Management & Administrative Services Computer Expenses Education & Training Public Relations Travel Related Expenses Certifications & Renewals Licenses & Permits Page iv

6 Fiscal Year Meeting Related Expenses Utilities YVWD Services 3-38 Waste Disposal Telephone & Internet Drinking Water Contractual Services Legal Audit & Accounting Professional Services Reserve Funds Sewer Infrastructure Replacement Insurance Regulatory Compliance Environmental Control Department Labor Benefits Repair & Maintenance Structures General Supplies & Expenses Lift Station No Lift Station No Lift Station No Lift Station No Lift Station No Pretreatment Sewer Division Debt Service Debt Service Principal WRWRF Debt Service Principal Brineline Debt Service Principal W.I.S.E Debt Service Principal R 10.3 & Booster Station Debt Service Principal Crow Street & B Debt Service Interest Rate Stabilization Fund Plant Support Facilities Asset Acquisition Sewer Division Sewer Treatment Department Sewer Administrative Services Department Environmental Control Department Page v

7 Fiscal Year CHAPTER FOUR Recycled Water Division Budget: Revenue Analysis Recycled Water - Commodity Charges Construction Water - Commodity Charges Recycled Water Service Demand Charge Construction Water Minimum Charge Penalty Late Charges Interest Earnings Property Tax - Unsecured Property Tax - Secured Tax Collection - Prior Recycled Water Administrative Services Department Labor Director Fees Benefits Repair & Maintenance - Structures Repair & Maintenance Valves Repair & Maintenance Pipelines Repair & Maintenance Service Lines Repair & Maintenance Fire Hydrants Repair & Maintenance Meters General Supplies & Expenses Utilities Power Purchases.4-17 Dues & Subscriptions Computer Expenses Education & Training Public Relations Travel Related Expenses Certifications & Renewals Licenses & Permits Meeting Related Expenses Utilities YVWD Services 4-26 Telephone & Internet Contractual Services Legal Audit & Accounting Professional Services Laboratory Services Reserve Funds Recycled Water Infrastructure Replacement Insurance 4-35 Regulatory Compliance Environmental Compliance Page vi

8 Fiscal Year CHAPTER FIVE Capital Improvement Program Budget: Capital Improvement Program Salinity Concentrate Reduction & Management Project YVRWFF.5-5 Calimesa Recycled Water Conveyance Pipeline Project.5-7 Redrilling of Well No Page vii

9 Fiscal Year Chapter One Fiscal Year Operating Budget Overview Chapter One Page 1-1

10 Fiscal Year Introduction The Yucaipa Valley Water District is made up of a proactive and diverse group of elected officials and employees dedicated to providing reliable water and wastewater service in an efficient, cost effective manner that provides a high level of customer satisfaction. On May 1, 2002, the Board of Directors adopted the following mission statement to clearly reflect the vision and principles that guide the dedicated elected officials and employees of the District. Yucaipa Valley Water District is committed to professionally managing the precious potable drinking water, sewer and non-potable water resources of the Yucaipa Valley in a reliable, efficient and cost effective manner in order to provide the finest service to our customers, both present and future. We are entrusted to serve the public for the benefit of the community. We believe in responsive, innovative and aggressive service, and take pride in getting the job done right the first time. We encourage a work environment that fosters professionalism, creativity, teamwork and personal accountability. We treat our customers and one another with fairness, dignity, respect and compassion and exhibit the utmost integrity in all we do. We believe in enhancing the environment by following a general philosophy of eliminating waste and maximizing recycling and reuse of our natural resources. We are committed to using the following operating principles as a guide to accomplishing our mission: We are proactive in our approach to issues. We are committed to integrity and consistently high ethical standards in all our business dealings. We use the strategic planning process to focus our efforts and minimize our crisis management mode. We make informed, rational and objective decisions. We aggressively pursue technological solutions to improve operations. We are inclusive in our decision making and delegate responsibility whenever possible. We design our services around customer wants and needs to the degree possible within our financial and regulatory constraints. We cultivate widespread commitment to common goals. We believe our success depends on every employee knowing and sharing these values and principles This Operational Budget and Capital Improvement Program has been prepared with the District s mission statement in mind to link the financial health of the District with our commitment to professionally manage the precious water, sewer and recycled water resources of the Yucaipa Valley in a reliable, efficient and cost effective manner in order to provide the finest service to our customers, both present and future. Chapter One Page 1-2

11 Fiscal Year To meet the mission of the District, the Board of Directors and staff members continue to proactively focus on water quality issues, water supply issues, infrastructure deficiencies, maintenance of existing systems and compliance with increasingly stringent regulatory requirements. Overview of the Yucaipa Valley Water District The Yucaipa Valley Water District was formed as part of reorganization, pursuant to the Reorganization Act of 1965, being Division I of Title 6 of the Government Code of the State of California. This reorganization consisted of the formation of the District, dissolution of the Calimesa Water District and formation of Improvement District No. 1 of the District as successor-in-interest, and dissolution of Improvement District A of the San Bernardino Valley Municipal Water District and the formation of Improvement District A of the District as successor-in-interest. On September 14, 1971, the Secretary of State of the State of California certified and declared formation of the Yucaipa Valley County Water District. The District operates under the County Water District Law, being Division 12 of the State of California Water Code (the Act ). Although the immediate function of the District was to provide water service, the District has assumed responsibility for providing recycled water and wastewater service in Yucaipa Valley. The District is located about 70 miles east of Los Angeles and 20 miles southeast of San Bernardino in the foothills of the San Bernardino Mountains and has a population of approximately 44,426. The District is situated in both San Bernardino County and Riverside County. Land Use within the District The altitude of the District rises from about 2,000 feet above sea level at the western end of the valley to about 5,000 feet at the eastern end, with average elevation of roughly 2,650 feet. The topography of the area is characterized by rolling hills separated by deeply entrenched stream beds, namely, the Yucaipa and Wilson Creeks. The District includes the incorporated cities of Yucaipa and Calimesa which are in San Bernardino and Riverside Counties respectively. The District projects that the undeveloped land within its boundaries will continue to be developed consistent with the general plans as provided by the City of Yucaipa and the City of Calimesa. The projected population of the District in the year 2060 will be approximately 94,800, which reflects buildout of the City of Calimesa and the City of Yucaipa. Chapter One Page 1-3

12 Fiscal Year Governance and Management The District is governed by a 5-member board of directors (the Board ), the members of which are elected from five separate divisions of the District for staggered 4-year terms. Chris Mann Division 1 Bruce Granlund Division 2 Jay Bogh Division 3 Lonni Granlund Division 4 Thomas Shalhoub Division 5 Chapter One Page 1-4

13 Fiscal Year Budget Overview The Fiscal Year operating budget totals $26,853,536 (excluding capital improvement projects) distinguished by the following three enterprise funds. Water Division, $13,924,171, 52% Recycled Water Division, $796,425, 3% Sewer Division, $12,132,940, 45% $13,924,171 $12,132,940 $796,425 Water Division Sewer Division Recycled Water Division Chapter One Page 1-5

14 Fiscal Year The departmental expenses for each of the enterprise funds are provided below: Water Division Expenditures, 0% $2,295,665, 17% $4,799,752, 34% $3,142,636, 23% $3,686,118, 26% Water Resources Administration Public Works Long-Term Debt Asset Acquisition $4,799,752 $3,686,118 $3,142,636 $2,295,665 Water Resources Administration Public Works Long-Term Debt Asset Acquisition Chapter One Page 1-6

15 Fiscal Year Sewer Division Expenditures $1,297,722, 11%, 0% $3,897,281, 32% $3,376,153, 28% $3,561,784, 29% Long-Term Debt Treatment Administration Environmental Control Asset Acquisition $1,297,722 $3,897,281 $3,561,784 $3,376,153 Long-Term Debt Treatment Administration Environmental Control Asset Acquisition Chapter One Page 1-7

16 Fiscal Year Recycled Water Division Expenditures $33,000, 4%, 0% $308,150, 39% $455,275, 57% Labor and Benefits Operational Expenses Reserves & Infrastructure Replacement Asset Acquisition $33,000 $308,150 $455,275 Labor and Benefits Operational Expenses Reserves & Infrastructure Replacement Asset Acquisition Chapter One Page 1-8

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26 Water Division Chapter Two Fiscal Year Water Division Operating Budget Chapter Two Page 2-1

27 Water Division Sources of Revenue Water Division Revenue Analysis The water division receives revenue from a number of different sources with the major sources consisting of the following: Potable Water - Commodity Charges ( ): This revenue source is the variable component of the water sales that is based on the amount of water consumed by our customers. Water sales represent the largest single revenue source in the Water Division. Being a variable cost component of the District s water revenue, this revenue source is by its very nature variable and directly dependent on the amount of water consumed. It is highly subject to seasonal variations and climatic changes. Construction Water Commodity Charges ( ): This highly variable revenue source for potable water consumption is collected from developers and contractors for water used during construction. The amount of water revenue generated from this source is directly dependent on the timing and magnitude of new construction in the Yucaipa Valley. Construction projects utilizing recycled water will be reflected in the recycled water division budget. $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 FY FY FY FY FY FY FY FY FY FY FY $5,912,971 Budgeted Proposed Budget $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 FY FY FY FY FY FY FY FY FY FY FY $20,000 Budgeted Proposed Budget Imported Water Sales - San Gorgonio Pass Water Agency ( ): This revenue source is the variable cost associated with the purchase of imported water from the San Gorgonio Pass Water Agency. The water purchased with these funds is used primarily by the Yucaipa Valley Regional Water Filtration Facility to produce drinking water for the City of Calimesa portion of our service area. $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 FY FY FY FY FY FY FY FY FY FY $250,000 FY Budgeted Proposed Budget Chapter Two Page 2-2

28 Water Division Imported Water - San Bernardino Valley Municipal Water District ( ): This revenue source is the variable cost associated with the purchase of imported water from the San Bernardino Valley Municipal Water District. The water purchased with these funds is used primarily by the Yucaipa Valley Regional Water Filtration Facility to produce drinking water for the City of Yucaipa portion of our service area. Potable Water Commodity Charge Multi-Unit Discount ( ): The latest version of the District s rate schedule continues to include a discount for the commodity charges for those high density developments with more than 30 dwelling units constructed prior to March This discount reflects the differential in service requirements for older high density developments. Water Wholesale Revenue ( ): This revenue source is generated from both the annual purchase of state water and the sale of filtered imported water delivered to one of several existing and proposed water delivery points. The District is only planning on serving Western Heights Mutual Water Company this fiscal year. $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 ($50,000) ($100,000) ($150,000) ($200,000) ($250,000) ($300,000) ($350,000) ($400,000) ($450,000) ($500,000) $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 FY FY FY FY FY FY FY FY FY FY $850,000 FY Budgeted Proposed Budget FY FY FY FY FY FY FY FY FY FY FY ($100,000) Budgeted Proposed Budget FY FY FY FY FY FY FY FY FY FY $300,000 FY Budgeted Proposed Budget Chapter Two Page 2-3

29 Water Division Potable Water - Service Demand Charge ( ): This revenue source is the fixed rate component charged to all water customers. Since this is a fixed charge, the estimated amount of revenue derived from this source is fairly constant year to year. Fire Service Standby Fee ( ): This revenue source is the fixed rate component charged to all customers that have an independent fire service to protect their property. Since this is a fixed charge, the estimated amount of revenue derived from this source is fairly constant year to year. $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 FY FY FY FY FY FY FY FY FY FY FY $3,200,000 Budgeted Proposed Budget FY FY FY FY FY FY FY FY FY FY FY $45,000 Budgeted Proposed Budget Construction Water Service Charge ( ): This revenue source is the fixed rate component charged to all customers using potable water for construction purposes. Like the commodity charge above, since these costs are associated with development, they are also highly variable. $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 FY FY FY FY FY FY FY FY FY FY FY $15,000 Budgeted Proposed Budget Chapter Two Page 2-4

30 Water Division Potable Water Service Charge Multi- Unit Discount ( ): The latest version of the District s rate schedule continues to include a service charge discount for high density developments of more than 30 dwelling units constructed prior to March This discount reflects the differential in service requirements for older high density developments. Unauthorized Use of Water Charge ( ): This revenue source is associated with the unauthorized use of water. Generally, the penalty costs associated with the unauthorized use of water has not been a budget item due to the high degree of unpredictability, however, with the historical trend information; this volatile revenue source can be tracked more for historical value than a dependable source of funding. Water Meter & Lateral Installation Charges ( ): This revenue source is associated with the cost for installing a water meter and service lateral for a new customer. The revenue generated from this source is directly dependent on the number of new water meter installations that occur as a result of development..00 ($20,000.00) ($40,000.00) ($60,000.00) ($80,000.00) ($100,000.00) ($120,000.00) ($140,000.00) ($160,000.00) FY FY FY FY FY FY FY FY FY FY ($135,000) FY Budgeted Proposed Budget $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 FY FY FY FY FY FY FY FY FY FY FY $2,000 Budgeted Proposed Budget $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 FY FY FY FY FY FY FY FY FY FY FY $75,000 Budgeted Proposed Budget Chapter Two Page 2-5

31 Water Division Fire Flow Measurements and Reports ( ): This revenue source is associated with the cost of performing fire flow reports in the field and generating fire flow reports for the fire department, cities and customers. This revenue source is dependent on local economic development and refurbishment activity by homeowners. $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 FY FY FY FY FY FY FY FY FY FY FY $3,500 Budgeted Proposed Budget Disconnect & Reconnect Charges ( ): This revenue source is generated from turning water service off as a result of delinquent payments or closed accounts. This revenue source is generally fairly constant, except for when the costs were adjusted to reflect the true cost of providing this service. This adjustment was expected to reduce the number of disconnect/reconnect services and therefore reduce the revenue generated from this service. $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 FY FY FY FY FY FY FY FY FY FY FY $125,000 Budgeted Proposed Budget Delinquent Payment Charges ( ): This revenue source is generated from late payments of services to the District. The District s late charges are 10% for the first month and 0.5% for any unpaid balance every month thereafter. This late charge is not intended to represent an interest rate or cost of money, but rather a penalty charge for late payment on an account. $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 FY FY FY FY FY FY FY FY FY FY FY $125,000 Budgeted Proposed Budget Chapter Two Page 2-6

32 Water Division Management and Accounting Services ( ): This revenue source is a transfer of funds from the wastewater division to the water division to ensure the water and sewer divisions both pay a fair share of expenses related to administration, accounting, and general services. $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $189,000 FY FY FY FY FY FY FY FY FY FY FY Budgeted Proposed Budget Interest Earned ( ): This revenue source is generated from investment interest earnings. The District s investment policy utilizes Local Agency Investment Fund (LAIF) as the predominant investment vehicle. Significantly lesser amounts are invested in the U.S. Securities and money market funds. $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $50,000 FY FY FY FY FY FY FY FY FY FY FY Budgeted Proposed Budget Property Tax Unsecured ( ): This revenue source is generated from the unsecured portion of the property tax increment received by the District from properties within the District s service area. Unsecured property taxes are those taxes collected on property that can be relocated and is not real estate. The tax is assessed against such things as business equipment, fixtures, boats and airplanes FY FY FY FY FY FY FY FY FY FY FY $115,000 Budgeted Proposed Budget Chapter Two Page 2-7

33 Water Division Property Tax Secured ( ): This revenue source is generated from the secured portion of the property tax increment received by the District from properties within the District s service area. Secured property taxes are those taxes collected on real property such as land and structures. $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $2,600,000 FY FY FY FY FY FY FY FY FY FY FY Budgeted Proposed Budget Tax Collection Prior ( ): This revenue source is generated from the property tax increment collected from prior years. $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $25,000 FY FY FY FY FY FY FY FY FY FY FY Budgeted Proposed Budget Other Taxes ( ): This revenue account includes other taxes collected and paid to the District. $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $170,000 FY FY FY FY FY FY FY FY FY FY FY Budgeted Proposed Budget Chapter Two Page 2-8

34 Water Division Miscellaneous Non-Operating Revenue ( ): This revenue source is used to track unspecified nonoperating revenue that is not directly attributable to the revenue categories previously established in the budget. $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 FY FY FY FY FY FY FY FY FY FY FY $100,000 Budgeted Proposed Budget Other sources of operating revenue for the water division include: Service Establishment Fee ( ) Bad Debt Write-Off & Recovery ( ) Rental Income ( ) Chapter Two Page 2-9

35 Water Division Water Resource Department Department Description The Water Resource Department is responsible for maintaining the safe and efficient operation of the potable water sources and recycled water distribution system. This involves monitoring and ensuring the production of potable water from the District s vertical wells and horizontal wells is coordinated with the water processed from the Oak Glen Surface Water Filtration Facility and the Yucaipa Valley Regional Water Filtration Facility. The Water Resource Department also maintains the operation of the recycled water system. The Water Resource Department is responsible for maintaining the vital balance between the seasonal demand for water by our customers and the amount of water produced and pumped to various portions of the water service area. Departmental Responsibilities The Water Resource Department is responsible for a total of 32 vertical water production wells, 5 monitoring wells, 6 horizontal water production wells, three separate surface sources, two drinking water filtration facilities, 23 reservoirs, and 10 booster pump stations. Additionally, the Department is responsible for the operation of the recycled water activities of the District. Organizational Structure & Staffing Levels This year the Water Resources Department has been allocated labor resources of 8.60 Full-Time Equivalent (FTE) employees. The FTE calculations for this department are as follows: 1 Title Range FTE Expense Operations Manager $ 109,186 Senior Plant Operator $ 100,837 Integrated Senior Plant Operator $ 49,832 Integrated Operator IV $ 48,942 Water Operator IV $ 82,662 Integrated Operator III $ 166,260 Integrated Operator II $ 109,035 Water Quality Chemist $ 7,227 Integrated Operator I $ 55,434 Total 8.60 $ 729,415 1 The positions that are assigned a FTE value of less than 1.0 are involved in the integrated operator program and are cross-trained with the Sewer Division, Treatment Department. Chapter Two Page 2-10

36 Water Division Budget Overview The following illustration shows the amount of funds budgeted and the actual expenses over the past several years. $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 FY FY FY FY FY FY FY FY FY FY FY Budgeted Proposed Budget Amout This year, the Water Resource Department will be allocated $4,799,752 (not including asset acquisitions & capital improvements), which represents a decrease of $206,148 as compared to the previous year, or a 3.20% decrease. This budget is based largely on the previous year s water demands and energy costs. Anticipated Issues for this Fiscal Year The following issues need to be closely monitored during future periods to minimize unexpected financial commitments of District funds. The specific resolution to the issues presented below may need to be further analyzed by District staff and presented to the Board of Directors for the adoption of a specific policy, procurement or other action as deemed necessary. The District currently needs to review the funding levels for the replacement of water related infrastructure including: wells, reservoirs, pipelines and booster stations. A category of funding has been developed to start the process of project funding. Further evaluation by District staff is necessary to adequately fund the infrastructure replacement needs of the District. Chapter Two Page 2-11

37 Water Division Water Division Water Resource Department Labor Fiscal Year Budget $644,500 $580,643 $635,700 $619,331 $789,300 $653,536 $740,000 $710,085 $789,245 $792,654 $884,000 $824,060 $935,000 $850,067 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Original Budget Proposed Budget $729,415 Expended This budget category includes the base salaries, overtime, and standby expenses associated with the water resource department staff members. Title Range FTE Expense Operations Manager $ 109,186 Senior Plant Operator $ 100,837 Integrated Senior Plant Operator $ 49,832 Integrated Operator IV $ 48,942 Water Operator IV $ 82,662 Integrated Operator III $ 166,260 Integrated Operator II $ 109,035 Water Quality Chemist $ 7,227 Integrated Operator I $ 55,434 Total 8.60 $ 729,415 Chapter Two Page 2-12

38 Water Division Water Division - Water Resource Department xx Benefits Fiscal Budget Year $320,615 $312,066 $338,235 $313,399 $388,985 $364,132 $397,000 $393,244 $408,800 $440,194 $424,200 $417,260 $460,150 $421,072 $399,337 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Original Budget Expended Proposed Budget This budget category includes the District paid benefits for the staff members of the water resource department. FICA (50013) $ 55,800 Life Insurance (50014) $ 3,440 Medical, Dental, Vision & Deferred Comp. (50016) $ 144,480 Disability Insurance (50017) $ 6,565 Workers' Compensation (50019) $ 19,693 PERS Employee (50021) $ 51,059 PERS Employer (50022) $ 106,500 Uniforms (50023) $ 2,580 Vacation / Sick Leave $ 7,500 Boot $200/Employee (50025) $ 1,720 Total $ 399,337 Chapter Two Page 2-13

39 Water Division Water Division - Water Resource Department Repair & Maintenance - Structures Fiscal Budget Year $215,000 $226,596 $200,000 $275,415 $200,000 $234,083 $275,000 $472,434 $275,000 $274,632 $275,000 $250,521 $200,000 $323,595 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $275,000 Original Budget Expended Proposed Budget This budget category is used for the maintenance and repair of all water source related facilities. This includes the Oak Glen Surface Water Filtration Facility but not the Yucaipa Valley Regional Water Filtration Facility (57040). This budget item is also used for the operation, maintenance and procurement of devices related to the District s Supervisory Control And Data Acquisition (SCADA) system and lubricating oil at various sites. Well and Booster Rehabilitation of Various Facilities $ 85,000 Reservoir Repair and Inspections $ 115,000 Electrical Repairs $ 30,000 Service and Repair Generators $ 20,000 SCADA Upgrades and Maintenance $ 21,000 Lubricating Oil $ 4,000 Total $ 275,000 Chapter Two Page 2-14

40 Water Division Water Division - Water Resource Department Repair & Maintenance Valves Fiscal Budget Year $15,000 $7,295 $15,000 $9,266 $15,000 $5,216 $10,000 $76 $10,000 $14,234 $10,000 $13,100 $7,500 $14,397 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $30,000 Original Budget Expended Proposed Budget The water resource department has become an integral player in the operation and maintenance of the District s one hundred thirteen specialty valves. This program involves the maintenance of the following types of valves: 52 pressure reducing valves; 28 pump control valves; 22 float control valves; and 14 pressure relief valves. Equipment and parts associated with the maintenance of Cla-valves. This does not include the labor from the Water Resources Department, Engineering Department, or Utility Service Department. $ 30,000 Total $ 30,000 Chapter Two Page 2-15

41 Water Division Water Division - Water Resource Department General Supplies & Expenses Fiscal Budget Year $1,500 $2,815 $2,000 $2,001 $2,000 $312 $2,000 $822 $2,000 $418 $2,000 $1,144 $1,250 $741 $1,000 $3,000 $2,500 $2,000 $1,500 $1,000 $500 Original Budget Expended Proposed Budget This budget category was established to track the expenses related to the miscellaneous supplies needed for the operation of the water resources department. General Supplies and Expenses $ 1,000 Total $ 1,000 Chapter Two Page 2-16

42 Water Division Water Division Water Resource Department Power Purchases Fiscal Budget Year $1,405,000 $1,431,274 $1,500,000 $1,312,482 $1,400,000 $1,385,815 $1,400,000 $1,652,335 $1,608,324 $1,649,588 $1,650,000 $1,192,680 $1,400,000 $1,098,500 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $1,400,000 Original Budget Expended Proposed Budget This budget category includes the power consumption charges associated with all of the water production wells and booster facilities. The District has been aggressively modifying our pumping schedules to comply with Time-Of-Use (TOU) and Super-Off- Peak (SOP) pumping schedules offered by Southern California Edison. This line item also includes fuel purchases for natural gas driven engines. Southern California Edison power purchases for all reservoirs, wells, and booster facilities. $ 1,400,000 Total $ 1,400,000 Chapter Two Page 2-17

43 Water Division Water Division - Water Resource Department Electricity & Fuel Fiscal Budget Year $4,000 $4,307 $4,000 $4,313 $4,000 $4,695 $4,750 $4,339 $4,750 $5,116 $5,000 $5,099 $5,000 $4,231 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $5,000 Original Budget Expended Proposed Budget This budget category was created to track the electrical costs at water facilities for the operation of lights, telecommunication equipment and fuel purchases to run certain non-electrical pumps and motors. It does not include electrical costs necessary to pump or boost water (see Power Purchases ) Electrical and Fuel Costs $ 5,000 Total $ 5,000 Chapter Two Page 2-18

44 Water Division Water Division - Water Resource Department Imported Water Purchases Fiscal Budget Year $800,000 $805,035 $1,000,000 $933,923 $1,000,000 $1,043,894 $1,100,000 $741,329 $1,100,000 $509,584 $1,100,000 $920,056 $1,100,000 $1,231,232 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $1,100,000 Original Budget Expended Proposed Budget This budget category will be used for the annual purchase of imported water from San Bernardino Valley Municipal Water District and the San Gorgonio Pass Water Agency for the enhancement of our local potable water supplies. Purchase of Imported Water $ 1,100,000 Total $ 1,100,000 Chapter Two Page 2-19

45 Water Division Water Division - Water Resource Department Licenses & Permits Fiscal Budget Year $22,000 $24,579 $25,000 $36,390 $25,000 $29,129 $25,000 $16,866 $25,000 $30,134 $25,000 $18,948 $25,000 $21,064 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $25,000 Original Budget Expended Proposed Budget This budget category includes the required annual operating permits for various state and local governmental agencies. In most cases, the amounts of the fees are established by regulation. California Department of Drinking Water $ 16,500 South Cost Air Quality Management District $ 4,200 San Bernardino Valley Municipal Water District $ 1,000 San Bernardino County Flood Control District $ 1,000 United States Fire Service Permit $ 300 State Water Resources Control Board Well Recordation $ 2,000 Total $ 25,000 Chapter Two Page 2-20

46 Water Division Water Division - Water Resource Department Laboratory Services Fiscal Budget Year $90,000 $55,876 $90,000 $46,985 $60,000 $49,034 $60,000 $62,323 $60,000 $93,703 $75,000 $74,202 $75,000 $85,525 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $85,000 Original Budget Expended Proposed Budget This budget category includes all analytical testing of water supply sources. Such testing includes inorganic, mineral, organic, volatile organic, radioactivity, and bacteriological analyses. A detailed list of the anticipated water quality tests is available upon request. Laboratory Services $ 85,000 Total $ 85,000 Chapter Two Page 2-21

47 Water Division Water Division - Water Resource Department Yucaipa Valley Regional Water Filtration Facility Operating Expenses Fiscal Budget Year $700,000 $549,985 $550,000 $664,912 $600,000 $570,097 $600,000 $639,177 $600,000 $911,863 $600,000 $751,125 $797,000 $735,430 $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $750,000 Original Budget Expended Proposed Budget This line item is associated with the Yucaipa Valley Regional Water Filtration Facility. To determine the true cost associated with water production at this facility, it is necessary to add labor related costs and imported water purchase expenses (which are not included in this line item). Chemicals and Supplies $ 260,000 Professional Services $ 110,000 Equipment Repairs and Maintenance $ 163,000 Instrumentation and Control System $ 90,000 Utilities Power, Gas, and Trash $ 75,000 Communications Telephone & Internet $ 22,000 Miscellaneous Expenses $ 30,000 Total $ 750,000 Chapter Two Page 2-22

48 Water Division Public Works Department Department Description The Public Works Department provides the routine and emergency maintenance and repair of District water, sewer and recycled water facilities. Departmental Responsibilities The Public Works Department is responsible for ensuring that the water, sewer and recycled water service to our customers is always provided in a safe, reliable and cost effective manner. In order to accomplish this goal, the Department is responsible for coordinating routine inspection and maintenance of District facilities. This includes: Routine and emergency inspections, operation and maintenance of all water related facilities (valves, fire hydrants, blow-offs, pressure reducing valves, pressure sustaining valves, wells, reservoirs, and booster stations); Routine and emergency maintenance of all sewer collection facilities (including manholes, lift stations, sewer mainlines, trench subsidence, sewer laterals, and ancillary facilities at the sewer treatment plant); Routine and emergency operation, inspection and maintenance of recycled water facilities (including pipelines, service lines, and meters); and Routine maintenance at the Yucaipa Valley Regional Water Filtration Facility and the Wochholz Regional Water Recycling Facility. Some of the responsibilities provided above will receive additional labor resources from staff members in other departments. Organizational Structure & Staffing Levels This year the Public Works Department has been allocated labor resources of Full-Time Equivalent (FTE) employees. The FTE calculation details for this department are as follows: Title Range FTE Expense Public Works Manager $ 92,925 Public Works Supervisors $ 433,546 Senior Utility Service Worker $ 56,472 Utility Service Worker IV $ 50,213 Purchasing Agent Integrated Operator II Utility Service Worker III $ 82,662 $ 144,407 $ 264,597 Utility Service Worker II $ 240,254 Utility Service Worker I $ 282,380 Total $1,647,456 The employees of this department generally create two to four crews depending on the tasks to be completed. This staffing level is critical in order to complete the necessary inspection and maintenance of facilities, as well as maintain an emergency response team available twenty-four (24) hours per day, seven (7) days a week. Chapter Two Page 2-23

49 Water Division Budget Overview The following illustration shows the amount of funds budgeted and the actual expenses for the past several years. $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 FY FY FY FY FY FY FY FY FY FY FY Budgeted Proposed Budget This year, the Public Works Department will be allocated $3,142,636 (not including asset acquisitions & capital improvements), which represents an increase of $573,136 as compared to the previous year, or a 22.30% increase. Anticipated Issues for This Fiscal Year The following issues have been identified for the next fiscal year. The specific resolution to the issues presented below may need to be further analyzed by District staff and presented to the Board of Directors for the adoption of a specific policy, procurement or other action as deemed necessary. The Public Works Department serves a vital role of conducting regular routine inspections, repairs, construction, and non-warranty maintenance work at all District facilities. Based on the results of the inspections, the members of this department generate work orders to ensure that the facilities are properly maintained. Individuals within this department will augment the staff members from other departments on an as needed basis. The following programs 1 will be maintained by the Utility Service Department: Yucaipa Valley Regional Water Filtration Facility The non-warranty maintenance duties at this facility are performed by individuals in this department. Warranty repairs will be performed by the Water Resource Department. Complex maintenance activities will be contracted to specialty firms under the direction of the Water Resource Department. Wochholz Regional Water Recycling Facility The non-warranty maintenance duties at this facility are performed by individuals in this department and the Environmental Control Department. Warranty repairs will be performed by the Sewer Treatment Department. Complex maintenance activities will be contracted to specialty firms under the direction of the Sewer Treatment Department. 1 The large number of the programs listed is mandated by local, State or Federal authorities. All of the programs represent a proactive approach by the District to minimize emergency repairs by maintaining the investment in assets owned by the District. Chapter Two Page 2-24

50 Water Division Valve Maintenance Program Valve maintenance will be a high priority for this department. The District has approximately 3,000 valves that need to be inspected and exercised every three years. This maintenance function may require repairs and/or replacement of the valve operation equipment. Fire Hydrant Maintenance Program Fire hydrant inspections, fire flow tests and pressure readings from the District's fire hydrants will also be a high priority. The fire hydrant maintenance program will be designed throughout the year to inspect all fire hydrants and convey operational data to the Engineering Department for analysis and record keeping. The District has approximately 1,050 fire hydrants. Sewer Trench Subsidence Repair Sewer collection system subsidence repair will need to continue this year. The repairs to the trenches will be the responsibility of the Utility Services Department. The department will work together with local paving contractors to facilitate the repair of District sewer collection system trenches. Emergency Water Mainline & Service Repairs The department staff are the first line responders to emergency water repairs. These individuals generally respond to about 140 water leaks per year. Air Release Valve Repair/Replacement Program The District has several air release valves in the water and sewer system. The operation of these valves is critical to the safe and efficient operation of the District. The department staff members will inspect the existing air release valves and determine if repairs or replacement is necessary. Well & Reservoir Site Maintenance The department will perform the routine maintenance and upkeep of the District's well and reservoir sites. This will include the routine weed abatement, painting, fence repair, structure repair, etc. Service Line Replacement Program This program involves the replacement of approximately 125 water service lines per year. Underground Service Alert Program The USA program involves the marking and identification of water and sewer infrastructure. Flushing Program The flushing program is another important program performed by this department. The flushing program involves the sequential flushing of approximately 300 fire hydrants to make sure the water delivered to our customers is always fresh and clean. Manhole Repair Program The environmental control department continues to perform routine inspection of the District's manholes. All repair work is currently being directed to the utility service department. This Department can expect to receive at least 12 repair requests per month. Chapter Two Page 2-25

51 Water Division Water Division Public Works Department Labor Fiscal Year Budget $827,730 $825,369 $945,340 $811,118 $963,140 $1,010,131 $950,000 $1,095,581 $1,009,764 $1,008,475 $1,042,800 $824,060 $1,200,000 $1,114,316 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $1,647,456 Original Budget Expended Proposed Budget This budget category includes the base salaries and expected overtime for the public works staff members. This department is responsible for the inspection, maintenance and repair of all existing water, sewer and recycled water facilities. Title Range FTE Expense Public Works Manager $ 92,925 Public Works Supervisor $ 433,546 Senior Utility Service Worker $ 56,472 Utility Service Worker IV $ 50,213 Purchasing Agent $ 82,662 Integrated Operator II Utility Service Worker III $ 144,407 $ 264,597 Utility Service Worker II $ 240,254 Utility Service Worker I $ 282,380 Total $1,647,456 Chapter Two Page 2-26

52 Water Division Water Division Public Works Department xx Benefits Fiscal Year Budget $431,790 $467,853 $523,825 $465,901 $540,800 $614,496 $630,250 $673,044 $662,000 $629,581 $707,000 $610,409 $683,500 $683,992 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $757,180 Original Budget Expended Proposed Budget This budget category includes the District paid benefits for the staff members of the public works department. FICA (50013) $ 126,030 Life Insurance (50014) $ 9,500 Medical, Dental, Vision & Deferred Comp. (50016) $ 399,000 Disability Insurance (50017) $ 14,900 Workers' Compensation (50019) $ 44,500 PERS Employee (50021) $ 45,000 PERS Employer (50022) $ 102,000 Vacation / Sick Leave $ 7,500 Uniforms (50023) $ 4,000 Boot $200/Employee (50025) $ 4,750 Total $ 757,180 Chapter Two Page 2-27

53 Water Division Water Division Public Works Department Repair & Maintenance Vehicles & Equipment Fiscal Year Budget $195,000 $163,754 $170,000 $201,473 $180,000 $188,160 $190,000 $189,322 $190,000 $197,506 $150,000 $239,042 $160,000 $246,312 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $200,000 Original Budget Expended Proposed Budget This budget category allocates funding for the routine maintenance of the vehicles assigned to individuals in the water, sewer and recycled water divisions. General Repair and Maintenance of Vehicles and Equipment $ 200,000 Total $ 200,000 Chapter Two Page 2-28

54 Water Division Water Division Public Works Department Repair & Maintenance - Valves Fiscal Year Budget $10,000 $6,181 $10,000 $3,117 $10,000 $6,497 $10,000 $10,000 $2,175 $10,000 $2,615 $10,000 $3,995 $25,000 $20,000 $15,000 $10,000 $5,000 $10,000 Original Budget Expended Proposed Budget The purpose of this line item is to pay for the expenses related to the maintenance of water valves. These valves generally range in size from 2 inches to 27 inches. The operation of the valve maintenance program is a requirement of the District s state health permit which requires each valve to be operated and inspected every three years. There are approximately 3,000 valves in the District s water system. General Repair and Maintenance of Valves $ 10,000 Total $ 10,000 Chapter Two Page 2-29

55 Water Division Water Division Public Works Department Repair & Maintenance - Pipelines Fiscal Year Budget $260,000 $304,555 $275,000 $228,957 $275,000 $329,241 $285,000 $189,817 $275,000 $150,918 $275,000 $268,740 $225,000 $196,197 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $225,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with maintaining the District s water transmission and distribution facilities. Costs are reflective of repair and replacement of pipelines and related infrastructure encroachments. This line item also includes costs associated with the maintenance of air releases and vacuum valves which are a critical part of maintaining the District s water distribution system. Maintenance of Pipelines (includes paving and outside services $ 195,000 Maintenance of Air Releases and Vacuum Valves $ 15,000 Leak Detection Program Evaluation of approximately 40 miles of existing older distribution system piping $ 15,000 Total $ 225,000 Chapter Two Page 2-30

56 Water Division Water Division Public Works Department Repair & Maintenance - Service Lines Fiscal Year Budget $135,000 $75,610 $125,000 $109,749 $120,000 $98,947 $110,000 $97,174 $100,000 $209,283 $100,000 $72,262 $175,000 $103,204 $250,000 $200,000 $150,000 $100,000 $50,000 $175,000 Original Budget Expended Proposed Budget This category includes all costs related to the replacement of water service lines. The District maintains roughly 10,000 water service lines. With an anticipated useful life of 25 years, the District will need to begin replacing the oldest service lines at an average rate of 360 per year. Service Line Replacements $ 175,000 Total $ 175,000 Chapter Two Page 2-31

57 Water Division Water Division Public Works Department Repair & Maintenance Fire Hydrants Fiscal Year Budget $25,000 $12,753 $25,000 $19,456 $25,000 $10,898 $25,000 $27,678 $25,000 $31,897 $25,000 $48,874 $40,000 $35,778 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $40,000 Original Budget Expended Proposed Budget The District has approximately 1,500 fire hydrants that need to be inspected, operated and maintained on a regular basis. The public works department will be inspecting and collecting fire flow data from 350 fire hydrants per year. Roughly twenty percent of the fire hydrants inspected are anticipated to need repair or replacement. This line item also includes the annual costs associated with inspection, repair, maintenance, and replacement of the District fire services (meters, valves and vaults). Repair and Maintenance of Fire Hydrants & Services $ 40,000 Total $ 40,000 Chapter Two Page 2-32

58 Water Division Water Division Public Works Department Repair & Maintenance Water Meters Fiscal Year Budget $130,000 $48,088 $70,000 $64,269 $70,000 $75,612 $70,000 $83,498 $75,000 $36,819 $75,000 $67,508 $75,000 $81,301 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $75,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with the maintenance, repair, replacement, testing and calibration of District meters and the routine maintenance of the related facilities. Large Meter Maintenance $ 5,000 Construction Meter Maintenance $ 3,500 Water Meter Purchase and Installation $ 65,000 Miscellaneous Expenditures $ 1,500 Total $ 75,000 Chapter Two Page 2-33

59 Water Division Water Division Public Works Department Fire Flow Testing Fiscal Year Budget $12,415 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $12,000 Original Budget Expended Proposed Budget This budget category consists of charges incurred by having fire flows tested by an outside source. In the future, this network modeling and system calibration will be performed by District staff. Fire Flow Testing $12,000 Total $ 12,000 Chapter Two Page 2-34

60 Water Division Water Division Public Works Department General Supplies & Expenses Fiscal Year Budget $2,480 $693 $3,000 $51 $1,000 $473 $1,000 $647 $1,000 $794 $1,000 $1,311 $1,000 $953 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $1,000 Original Budget Expended Proposed Budget This budget category includes the miscellaneous supplies and expenses related to the operation of the public works department. Supplies and Expenses $ 1,000 Total $ 1,000 Chapter Two Page 2-35

61 Water Division Administrative Service Department Department Description The administrative service department consists of four subdepartments: management; accounting; customer service; and engineering. These subdepartments provide administrative services to the three District enterprises: water, sewer, and recycled water. Departmental Responsibilities The administrative service department is responsible for ensuring the following: Management: The individuals in Management are responsible for managing the operational and planning functions of the District. This includes risk management, fund investment, board member information, policy management, human resources, and public relations. Accounting: The individuals in Accounting are responsible for all accounting functions which range from tracking District assets to maintaining accounts payable, accounts receivable, and payroll. Accounting is also responsible for maintaining fund balances, tracking of development impact fees, and maintaining the current budget. Customer Service: The individuals in Customer Service are responsible for all general customer related activities such as maintaining the customer service database, processing of utility billing, receiving all fees/charges, maintaining service records for the Department of Health Services. Engineering: The individuals in Engineering are responsible for all engineering related functions including: water and sewer modeling; GIS studies and applications; consultant and contractor oversight; development of design and construction standards; plan check and inspection services; and performing other related engineering studies and services. Organizational Structure & Staffing Levels This year the Administration Department has been allocated labor resources of 9.35 Full-Time Equivalent (FTE) employees. The FTE calculation details for this department are as follows: Title Range FTE Expense General Manager $ 84,628 Chief Financial Officer $ 60,060 Water Resource Manager $ 73,937 Engineering Manager $ 54,810 Management Analyst $ 62,718 Administrative Supervisor $ 53,171 Water Resource Project Supervisor $ 52,752 Business System Analyst - GIS $ 45,506 Engineering Technician III $ 37,039 Administrative Clerk IV $ 70,249 Engineering Technician I $ 33,486 Utility Service Worker I $113,671 Administrative Clerk III $ 27,296 Administrative Clerk II $ 22,715 Total 9.35 $792,038 Chapter Two Page 2-36

62 Water Division Budget Overview The following illustration shows the amount of funds budgeted and the actual expenses over the past several years. $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 FY FY FY FY FY FY FY FY FY FY FY Budgeted Proposed Budget This year, the Water Administrative Services Department will be allocated $3,686,118 (not including asset acquisitions & capital improvements), which represents a decrease of $224,617 as compared to the previous year, or a 5.74% decrease. Anticipated Issues for This Fiscal Year The following issues have been identified for this fiscal year. The specific resolution to the issues presented below may need to be further analyzed by District staff and presented to the Board of Directors for the adoption of a specific policy, procurement or other action as deemed necessary. The District continues to underfund our actual depreciation expenses. This issue is most readily apparent in the annual financial audit which shows the following funded and unfunded depreciation expense. FY FY FY FY FY FY FY FY $500,000 $1,000,000$1,500,000$2,000,000$2,500,000$3,000,000$3,500,000$4,000,000 Budgeted Depreciation Expense Total Depreciation Expense In order to adequately fund the repair and replacement of District facilities, additional funding is necessary. Chapter Two Page 2-37

63 Water Division Water Division Administrative Service Department Labor Fiscal Budget Year $702,850 $655,282 $745,830 $619,099 $641,470 $558,843 $730,000 $549,637 $687,667 $558,458 $705,000 $627,113 $750,000 $685,356 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $792,038 Original Budget Expended Proposed Budget This budget category includes the base salaries and expected overtime for the administrative staff members. Title Range FTE Expense General Manager $ 84,628 Chief Financial Officer $ 60,060 Water Resource Manager $ 73,937 Engineering Manager $ 54,810 Management Analyst $ 62,718 Administrative Supervisor $ 53,171 Water Resource Project Supervisor $ 52,752 Business System Analyst - GIS $ 45,506 Engineering Technician III $ 37,039 Administrative Clerk IV $ 70,249 Engineering Technician I $ 33,486 Utility Service Worker I $113,671 Administrative Clerk III $ 27,296 Administrative Clerk II $ 22,715 Total 9.35 $792,038 Chapter Two Page 2-38

64 Water Division Water Division Administrative Service Department Director Fees Fiscal Budget Year $14,000 $16,741 $15,000 $15,525 $15,000 $12,851 $15,000 $15,699 $16,000 $19,073 $19,000 $21,202 $20,000 $22,827 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $22,500 Original Budget Expended Proposed Budget Meeting reimbursement expenses for board members. Director Fees, Travel and Other Expenses $ 22,500 $ 22,500 Chapter Two Page 2-39

65 Water Division Water Division Administrative Service Department xx Benefits Fiscal Year Budget $397,250 $402,125 $415,335 $387,181 $382,380 $369,603 $383,450 $349,246 $356,200 $360,580 $377,236 $538,408 $381,000 $584,236 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100, $437,080 Original Budget Expended Proposed Budget This budget category includes the District paid benefits for the administrative staff members. FICA (50013) $ 62,000 Life Insurance (50014) $ 3,740 Medical, Dental, Vision & Deferred Comp. (50016) $ 154,600 Disability Insurance (50017) $ 7,300 Workers' Compensation (50019) $ 21,900 PERS Employee (50021) $ 56,700 PERS Employer (50022) $ 118,200 Uniforms (50023) $ 2,800 Vacation / Sick Leave $ 8,000 Boot $200/Employee (50025) $ 1,840 Total $ 437,080 Chapter Two Page 2-40

66 Water Division Water Division Administrative Service Department Repair & Maintenance Structures Fiscal Budget Year $15,000 $13,929 $20,000 $16,967 $20,000 $18,573 $20,000 $33,694 $20,000 $29,553 $20,000 $60,756 $40,000 $156,026 $15,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with the maintenance and repair of the District administration building and related facilities. In, the District completed remodeling of the interior of the main office to address the deterioration of the building and organizational restructuring due to the retirement of most of the management staff members. General Maintenance for the Administrative facilities $ 15,000 $ 15,000 Chapter Two Page 2-41

67 Water Division Water Division Administrative Service Department Safety Equipment Fiscal Budget Year $10,000 $11,257 $25,000 $34,190 $20,000 $22,799 $20,000 $22,094 $25,000 $28,461 $25,000 $21,555 $25,000 $21,534 $40,000 $30,000 $20,000 $10,000 Original Budget Expended Proposed Budget $25,000 This budget category represents the annual projected costs associated with the purchase of safety equipment necessary to comply with Cal-OSHA, NIOSHA, confined space, Hazmat, and Cal Trans Requirements. Miscellaneous Safety Equipment and Testing $ 25,000 $ 25,000 Chapter Two Page 2-42

68 Water Division Water Division Administrative Service Department Petroleum Products Fiscal Budget Year $100,000 $112,338 $110,000 $114,682 $120,000 $124,198 $120,000 $121,283 $125,000 $97,555 $125,000 $82,975 $100,000 $90,877 $100,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Original Budget Expended Proposed Budget This budget category represents the projected costs associated with the purchase of gasoline, propane, oil and diesel fuel for District vehicles and equipment. Unleaded Gasoline $ 55,500 Propane $ 2,000 Diesel Fuel $ 40,000 Oil and Disposal Costs $ 2,500 Total $100,000 Chapter Two Page 2-43

69 Water Division Water Division Administrative Service Department Office Supplies Fiscal Year Budget $40,000 $36,288 $40,000 $37,220 $35,000 $33,264 $35,000 $24,528 $35,000 $26,301 $30,000 $29,742 $30,000 $42,532 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $30,000 Original Budget Expended Proposed Budget This budget category will be used for office supplies for the water division. Office Supplies $ 30,000 Total $ 30,000 Chapter Two Page 2-44

70 Water Division Water Division Administrative Service Department General Supplies & Expenses Fiscal Budget Year $30,000 $25,954 $30,000 $23,163 $25,000 $27,375 $25,000 $25,841 $25,000 $28,929 $30,000 $38,945 $30,000 $40,513 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $35,000 Original Budget Expended Proposed Budget This budget category includes the miscellaneous supplies and expenses related to the operation of the water division. Supplies and Expenses $ 35,000 Total $ 35,000 Chapter Two Page 2-45

71 Water Division Water Division Administrative Service Department Electricity Fiscal Year Budget $25,000 $27,692 $26,000 $25,732 $28,000 $26,579 $28,000 $27,145 $28,000 $29,020 $28,000 $28,469 $30,000 $29,243 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $30,000 Original Budget Expended Proposed Budget This budget category represents the costs associated with general electrical usage by the departments within the water division. Electrical Costs $ 30,000 Total $ 30,000 Chapter Two Page 2-46

72 Water Division Water Division Administrative Service Department Natural Gas Fiscal Year Budget $5,000 $2,647 $5,000 $2,501 $3,000 $2,972 $3,000 $4,087 $3,000 $2,152 $3,000 $1,888 $3,000 $2,107 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $3,000 Original Budget Expended Proposed Budget This budget category represents the costs associated with natural gas usage by the departments within the water division. This expense is generally associated with heating of District facilities. Natural Gas Costs $ 3,000 Total $ 3,000 Chapter Two Page 2-47

73 Water Division Water Division Administrative Service Department Dues & Subscriptions Fiscal Year Budget $20,000 $10,148 $10,000 $9,745 $10,000 $10,402 $10,000 $12,911 $13,000 $16,504 $10,000 $17,025 $16,500 $16,704 $25,000 $20,000 $15,000 $10,000 $5,000 $16,500 Original Budget Expended Proposed Budget This category includes all costs related to membership dues and periodical subscriptions for the water division during the fiscal year. In the prior fiscal year, the District was a member of the following organizations: American Water Works Association (AWWA); Association of Environmental Professionals; California Water Environmental Association (CWEA); California Municipal Treasury Association (CMTA); California Special Districts Association (CSDA); Riverside County RDA; and the San Bernardino County Special Districts Association. Dues and Subscriptions $ 16,500 Total $ 16,500 Chapter Two Page 2-48

74 Water Division Water Division Administrative Service Department Computer Expenses Fiscal Budget Year $150,000 $72,660 $75,000 $89,374 $85,000 $111,943 $105,000 $121,200 $130,000 $85,899 $65,000 $98,071 $100,000 $118,453 $100,000 $250,000 $200,000 $150,000 $100,000 $50,000 Original Budget Expended Proposed Budget The District staff relies heavily upon the proper operation and integration of our various computer systems. Therefore, this budget category has been established to include the costs related to modifications and improvements in the operation of the computer systems. General Accounting and Customer Service Programs $ 33,000 Computer and Network Maintenance $ 32,000 Miscellaneous Hardware and Software $ 35,000 Total $100,000 Chapter Two Page 2-49

75 Water Division Water Division Administrative Service Department Postage Fiscal Budget Year $7,500 $4,946 $6,500 $4,072 $6,000 $5,150 $6,000 $4,755 $6,000 $3,197 $6,000 $5,190 $5,000 $1,679 $3,500 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 Original Budget Expended Proposed Budget This budget category will be used to pay for the cost of postage, envelopes and miscellaneous postage supplies. Postage and Overnight Express Charges $ 3,500 Total $ 3,500 Chapter Two Page 2-50

76 Water Division Water Division Administrative Service Department Education & Training Fiscal Budget Year $30,000 $23,718 $30,000 $13,254 $15,000 $9,999 $15,000 $13,533 $15,000 $20,937 $15,000 $7,002 $15,000 $10,166 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $15,000 Original Budget Expended Proposed Budget This budget category includes the costs associated with training individuals in the water division. Education and Training Expenses $ 15,000 Total $ 15,000 Chapter Two Page 2-51

77 Water Division Water Division Administrative Service Department Utility Billing Expenses Fiscal Budget Year $125,000 $136,486 $135,000 $125,456 $130,000 $138,219 $135,000 $141,606 $135,000 $147,349 $180,000 $141,041 $150,000 $155,163 $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $180,000 Original Budget Expended Proposed Budget This budget category represents the costs associated with the production and collection of monthly customer invoices. The postage necessary to mail the monthly utility bills are included in this budget line item. The District staff suggests waiving the credit card fees charged to customers to encourage the use of alternative payment methods. Credit Card Convenience Fees $ 30,000 Utility Billing Expenses $ 150,000 Total $ 180,000 Chapter Two Page 2-52

78 Water Division Water Division Administrative Service Department Public Relations Fiscal Year Budget $30,000 $18,121 $45,000 $21,900 $22,500 $11,989 $17,500 $9,432 $15,325 $34,211 $16,500 $6,813 $57,500 $7,603 $50,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with public relations efforts which include public tours and tours for school children. In -18, all historical and future budget data for the Printing and Publications budget category ( ) was combined here. Public Relations $ 50,000 Total $ 50,000 Chapter Two Page 2-53

79 Water Division Water Division Administrative Service Department Travel Related Expenses Fiscal Year Budget $15,000 $6,533 $7,500 $3,400 $5,000 $2,741 $5,000 $6,205 $5,000 $8,995 $10,000 $4,697 $10,000 $5,118 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $10,000 Original Budget Expended Proposed Budget This budget category includes travel related expenses associated with the water division. Travel Related Expenses $ 10,000 Total $ 10,000 Chapter Two Page 2-54

80 Water Division Water Division Administrative Service Department Certifications & Renewals Fiscal Year Budget $6,000 $4,709 $6,000 $6,001 $7,000 $5,674 $8,000 $5,423 $6,000 $6,867 $6,000 $5,702 $7,000 $7,237 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $7,000 Original Budget Proposed Budget This budget category will be used for water division employee certifications. Water Division Certifications $ 7,000 Total $ 7,000 Chapter Two Page 2-55

81 Water Division Water Division Administrative Service Department Meeting Related Expenses Fiscal Year Budget $4,000 $4,774 $4,000 $4,292 $4,500 $6,732 $8,000 $5,183 $6,000 $5,097 $6,000 $4,144 $6,000 $5,636 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $6,000 Original Budget Proposed Budget The District hosts numerous meetings throughout the year which include several regional meetings for water industry professionals. This budget category will be used for expenses related to meetings hosted or attended by the District for water related functions. Meeting Related Expenses $ 6,000 Total $ 6,000 Chapter Two Page 2-56

82 Water Division Water Division Administrative Service Department Utilities YVWD Services Fiscal Year Budget $51,177 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Original Budget Expended Proposed Budget $50,000 This budget category will be for water and sewer charges billed to the District. Utilities- YVWD Water Services $ 50,000 Total $ 50,000 Chapter Two Page 2-57

83 Water Division Water Division Administrative Service Department Waste Disposal Fiscal Year Budget $3,000 $1,881 $2,500 $1,953 $2,500 $2,661 $2,750 $2,050 $2,750 $2,060 $2,750 $2,362 $2,500 $2,286 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $2,500 Original Budget Expended Proposed Budget This budget category represents the projected costs associated with waste disposal by the departments in the water division. Waste Disposal Costs $ 2,500 Total $ 2,500 Chapter Two Page 2-58

84 Water Division Water Division Administrative Service Department Telephone & Internet Fiscal Year Budget $38,000 $32,647 $35,000 $30,172 $32,500 $43,693 $42,000 $41,282 $42,000 $41,866 $42,000 $41,183 $92,000 $41,981 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $45,000 Original Budget Expended Proposed Budget This budget category represents the costs associated with business, cellular telephone, and internet usage by the departments within the water division. Telephone Services $ 13,000 Internet Services $ 32,000 Total $ 45,000 Chapter Two Page 2-59

85 Water Division Water Division Administrative Service Department Conservation & Rebates Fiscal Year Budget $1,089 $429,198 $250,000 $76,854 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $10,000 Original Budget Expended Proposed Budget This budget category represents the costs associated with the May 5,, State Water Resources Control Board adopted emergency regulations to achieve a statewide 25% reduction in potable urban water use. These stringent water use regulations required YVWD to achieve a 36% reduction from the amount of drinking water produced in. Going forward, this category will be associated with water conservation in anticipation of future drought conditions. Conservation & Rebates $ 10,000 Total $ 10,000 Chapter Two Page 2-60

86 Water Division Water Division Administrative Service Department Contractual Services Fiscal Year Budget $83,500 $63,179 $73,500 $63,575 $68,000 $62,702 $65,000 $65,318 $65,000 $70,617 $65,000 $103,556 $80,000 $106,651 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $80,000 Original Budget Expended Proposed Budget This budget category includes all contract service costs for equipment and services within the water division. These services include: building security monitoring, copier maintenance, GIS maintenance, printer maintenance, answering service, landscape services, APN database, underground service alert, and other miscellaneous services. General Contractual Services $ 80,000 Total $ 80,000 Chapter Two Page 2-61

87 Water Division Water Division Administrative Service Department Legal Fiscal Budget Year $60,000 $35,838 $45,000 $46,793 $45,000 $42,107 $45,000 $34,205 $45,000 $40,845 $45,000 $42,118 $40,000 $76,019 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $40,000 Original Budget Expended Proposed Budget This budget category is used for all water related legal costs, including labor attorneys. Legal fees related to sewer issues will be expensed to the sewer budget (see ) and legal fees related to recycled issues will be expensed to the recycled water budget (see ). Legal Expenses $ 40,000 Total $ 40,000 Chapter Two Page 2-62

88 Water Division Water Division Administrative Service Department Audit & Accounting Fiscal Year Budget $16,000 $11,318 $16,000 $16,073 $16,000 $16,448 $16,000 $15,563 $16,000 $11,900 $16,000 $10,485 $16,000 $10,755 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $16,000 Original Budget Expended Proposed Budget This budget category will be used for audit services incurred during the fiscal year. Miscellaneous Audit Expenses $ 16,000 Total $ 16,000 Chapter Two Page 2-63

89 Water Division Water Division Administrative Service Department Professional Services Fiscal Year Budget $160,000 $123,444 $100,000 $117,456 $120,000 $185,126 $150,000 $182,465 $150,000 $255,161 $150,000 $124,895 $250,000 $299,444 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $200,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with professional fees for the water division. This category will generally be used for labor consulting, legislative consulting, property appraisals, surveying, and specialized engineering studies. Labor Consulting Services $ 35,000 Legislative Consulting Services $ 69,000 Engineering Services $ 91,000 Miscellaneous Services $ 5,000 Total $ 200,000 Chapter Two Page 2-64

90 Water Division Water Division Administrative Service Department Reserve Funds Fiscal Year Budget $699,976 $699,976 $375,095 $375,095 $190,000 $190,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $209,235 $209,235 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $200,000 Original Budget Expended Proposed Budget Prudent financial planning and fiscal responsibility includes anticipating and preparing for future funding requirements as well as unforeseen and unexpected emergencies, disasters, and other events. The District has established this annual reserve for its long-term organizational and operational stability and to enable the District to minimize significant rate fluctuations due to unforeseen and expected cash flow requirements during the year. This reserve fund is to ensure that the district accumulates, manages, maintains, and uses certain financial resources only for specific purposes. At the conclusion of this fiscal year, these funds will be transferred and designated to fund water division depreciation reserves. Reserve Funds $ 200,000 Total $ 200,000 Chapter Two Page 2-65

91 Water Division Water Division Administrative Service Department xxxxx Water Infrastructure Replacement Fiscal Year Budget $397,935 $397,935 $400,000 $400,000 $400,000 $400,000 $500,000 $500,000 $1,265,000 $1,265,000 $1,000,000 $1,000,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $1,000,000 Original Budget Expended Proposed Budget This budget category represents funding necessary to replace depreciated assets of the water division such as wells, reservoirs, boosters, pipelines, services, fire hydrants, meters, structures, buildings, cars, trucks, office equipment, shop equipment, computers, radios, construction equipment, and tools relative to the water operations. At the conclusion of this fiscal year, these funds will be transferred and designated to fund the replacement of water related infrastructure reserves. Water Infrastructure Replacement $ 1,000,000 Total $ 1,000,000 Chapter Two Page 2-66

92 Water Division Water Division Administrative Service Department Insurance Fiscal Year Budget $115,000 $110,699 $120,000 $113,943 $120,000 $102,260 $120,000 $96,722 $105,000 $98,685 $105,000 $99,933 $100,000 $96,001 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $100,000 Original Budget Expended Proposed Budget This budget category represents the annual costs associated with insurance coverage related to general, auto, and property insurance. Costs incurred related to small claims are also assigned to this line item. General Liability Insurance $ 100,000 Total $ 100,000 Chapter Two Page 2-67

93 Water Division Water Division Administrative Service Department Regulatory Compliance Fiscal Year Budget $62,500 $17,213 $95,000 $15,703 $15,000 $8,863 $80,000 $21,235 $57,500 $21,471 $55,000 $7,390 $25,000 $13,874 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $15,000 Original Budget Expended Proposed Budget This budget category will be used for regulatory compliance expenses for the water division. General Regulatory Compliance Expenses $ 10,000 Water Demand Management Measures (AB 1420) $ 5,000 Total $ 15,000 Chapter Two Page 2-68

94 Water Division Water Division Administrative Service Department Election Related Expenses Fiscal Year Budget $15,000 $8,265 $10,000 $5,141 $15,000 $11,043 $10,000 $4,258 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 Original Budget Expended Proposed Budget This budget category will be used for expenses related to general elections of the Board. Riverside County & San Bernardino County Election Expenses $ 0 Total $ 0 Chapter Two Page 2-69

95 Water Division Water Division Administrative Service Department Beaumont Basin Watermaster Fiscal Budget Year $5,500 $6,000 $10,000 $20,000 $65,659 $60,000 $9,138 $60,000 $43,861 $60,000 $45,607 $60,000 $26,738 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $50,000 Original Budget Expended Proposed Budget This budget category will be used for expenses related to the Beaumont Basin Watermaster. Beaumont Basin Watermaster $ 50,000 Total $ 50,000 Chapter Two Page 2-70

96 Water Division Water Division Debt Service Department Description The Water Debt Service expenditures are associated with the 2004A bond issuance. Background of Debt Issuance The Yucaipa Valley Water District Financing Corporation was established on May, 24, 2004 as a nonprofit public benefit corporation organized for the sole purpose of acquiring, constructing, rehabilitating, financing and refinancing of, or providing for the sale or leasing of, facilities, land and equipment for the use, benefit and enjoyment of the public served by public agencies in the State of California and any other purpose incidental thereto. In June 2004, the Yucaipa Valley Water District Financing Corporation issued $45,730,000 in revenue bonds for the construction of water related facilities related to the Yucaipa Valley Regional Water Filtration Facility. In early, the outstanding debt was refinanced, resulting in lower principal and interest payment for the remaining term of the financing. The following schedule provides the principal and interest payments through the full term of the financing. $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 FY 2005 FY 2007 FY FY FY FY FY FY 2019 FY 2021 FY 2023 FY 2025 FY 2027 FY 2029 FY 2031 FY 2033 FY 2035 Principal Paid Principal Payment Interest Paid Interest Payment Chapter Two Page 2-71

97 Water Division Water Division Debt Service Debt Service Principal Fiscal Year Budget $885,000 $885,000 $920,000 $920,000 $955,000 $955,000 $995,000 $995,000 $1,035,000 $1,035,000 $980,000 $980,000 $1,030,000 $1,030,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $1,030,000 Original Budget Expended Proposed Budget This budget category will be used for expenses related to the principal payment of the 2004A prior to FY and A Series Revenue Bonds for the water division. Debt Service Principal Payment $ 1,030,000 Total $ 1,030,000 Chapter Two Page 2-72

98 Water Division Water Division Debt Service Debt Service Interest Fiscal Year Budget $2,046,219 $2,046,219 $2,012,375 $2,012,375 $1,976,025 $1,976,025 $1,937,025 $1,937,025 $1,896,425 $1,896,425 $1,314,014 $1,314,014 $1,265,665 $1,265,663 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $1,265,665 Original Budget Expended Proposed Budget This budget category will be used for expenses related to the interest payment of the 2004A Revenue Bonds prior FY and A for the water division. Debt Service Interest Payment $ 1,265,665 Total $ 1,265,665 Chapter Two Page 2-73

99 Water Division Water Division Debt Service Line Item Used for Fund Transfer Rate Stabilization Fund Fiscal Year Budget $102,744 $102,744 $75,000 $75,000 $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Original Budget Expended Proposed Budget This budget category will be used to establish a fund for stabilizing water rates in the future. Rate Stabilization Fund Contribution $ 0 Total $ 0 Chapter Two Page 2-74

100 Water Division Asset Acquisition Water Division BUDGETARY DESCRIPTION The Asset Allocation portion of the operating budget is used for the purchase of specific fixed assets which are generally greater than $5, This portion of the budget will be used by the accounting department to appropriately categorize and track the purchase of fixed assets. PROCUREMENT METHODOLOGY The following schematic diagram illustrates the methodology used by the District staff to secure the purchase of the fixed assets. General Procedure for Asset Evaluation & Procurement Potential asset procurement(s) are reviewed by departmental supervisors and management throughout the year as specific needs arise Potential asset(s) are considered important and scheduled for planned procurement in the next fiscal year operating budget Potential asset procurement(s) are considered vital and scheduled for immediate procurement by the Board of Directors Potential asset(s) are presented to the Board of Directors at a budget workshop for possible procurement during the next fiscal year No Board Approves Budgeted Asset Procurement Yes Potential asset procurement(s) are included in the annual operating budget as a guide for the fiscal year Justification for purchasing the asset is presented to a committee of the Board of Directors for consideration Committee Members Approve Purchase of Asset Yes A Director Memorandum is presented to the Board of Directors with supporting documentation to justify the purchase of the asset No Yes Board of Directors Approve the Purchase of Asset No Asset Purchased by the District 1 Items purchased during the fiscal year that is $5,000 or less will be expensed at the time of purchase instead of carried as a District asset. Chapter Two Page 2 75

101 Water Division At a minimum, the District staff will present all purchases to a committee of the Board prior to presenting the purchase of an asset to the Board of Directors for consideration. In the case of a planned asset purchase, the entire Board will be able to review the conceptual purchase of an asset at a budget workshop prior to having the item presented to a committee. It is important to recognize that all budget workshops, committee meetings, and board meetings are open to the public. As a general rule of thumb, asset acquisition will be funded by existing reserve funds. Therefore, the budget will have an offsetting amount of reserve funds added to the revenue portion of the budget for each asset identified below. BUDGET OVERVIEW The following summary represents the total acquisition allocation by department for the water division. Water Division Department Requesting Asset Acquisition Estimated Cost Associated with the Proposed Asset Acquisitions of Offsetting Reserve Funds Added to Operating Revenue Water Resources Department $ Public Works Department $ Administrative Department $ Total $ 0 $ 0 Chapter Two Page 2 76

102 Water Division WATER DIVISION ASSET ACQUISITION Water Resources Department DESCRIPTION: LINE ITEM DETAIL: The following assets have been identified for acquisition by the water resources department. Replacement Vehicles Total $ 0 Chapter Two Page 2 77

103 Water Division WATER DIVISION ASSET ACQUISITION Public Works Department DESCRIPTION: LINE ITEM DETAIL: The following assets have been identified for acquisition by the public works department. Replacement Vehicles Total $ 0 Chapter Two Page 2 78

104 Water Division WATER DIVISION ASSET ACQUISITION Administration Department DESCRIPTION: LINE ITEM DETAIL: The following assets have been identified for acquisition by the Administration Department. Replacement Vehicles Total $ 0 Chapter Two Page 2 79

105 Sewer Division Chapter Three Fiscal Year Sewer Division Operating Budget Chapter Three Page 3-1

106 Sewer Division Sewer Division Revenue Analysis Sources of Operating Revenue The sewer division receives operating revenue from a number of different sources with the major sources consisting of the following: Sewer Service Demand Charge ( ): This revenue source is the fixed rate component charged to all sewer customers. Since this is a monthly fixed charge, the estimated amount of revenue derived from this source is fairly constant year to year. This is the single largest revenue source for the sewer division. $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 FY FY FY FY FY FY FY FY FY FY FY $11,890,265 Budgeted Proposed Budget Sewer Service Demand Charge Multi- Unit Discount ( ): The latest version of the District s rate schedule continues to include a discount for the sewer service demand charges for those high density developments with more than 30 dwelling units constructed prior to March This discount reflects the differential in service requirements for older high density developments. ($50,000) ($100,000) ($150,000) ($200,000) ($250,000) FY FY FY FY FY FY FY FY FY FY FY ($200,000) ($300,000) Budgeted Proposed Budget Chapter Three Page 3-2

107 Sewer Division Penalty Late Charges ( ): This revenue source is generated from late payments of sewer services. The District s late charges are 10% for the first month and 0.5% for any unpaid balance every month thereafter. This late charge is not intended to represent an interest rate or cost of money, but rather a penalty charge for late payment on an account. $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $129,925 FY FY FY FY FY FY FY FY FY FY FY Budgeted Proposed Budget Other Operating Revenue ( ): This revenue source is generated from miscellaneous operating revenue sources. This category generally includes inspection and permit fees on existing laterals and other miscellaneous sources of revenue. $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $3,250 FY FY FY FY FY FY FY FY FY FY FY Budgeted Proposed Budget Interest Earnings ( ): This revenue source is generated from investment interest earnings. The District s investment policy utilizes Local Agency Investment Fund (LAIF) as the predominant investment vehicle. Significantly lesser amounts are invested in the U.S. Securities and money market funds. $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $35,000 FY FY FY FY FY FY FY FY FY FY FY Budgeted Proposed Budget Chapter Three Page 3-3

108 Sewer Division Property Tax Unsecured ( ): This revenue source is generated from the unsecured portion of the property tax increment received by the District from properties within the District s service area. Unsecured property taxes are those taxes collected on property that can be relocated and is not real estate. The tax is assessed against such things as business equipment, fixtures, boats and airplanes. $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 FY FY FY FY FY FY FY FY FY FY FY $50,000 Budgeted Proposed Budget Property Tax Secured ( ): This revenue source is generated from the secured portion of the property tax increment received by the District from properties within the District s service area. Secured property taxes are those taxes collected on real property such as land and structures. $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 FY FY FY FY FY FY FY FY FY FY FY $175,000 Budgeted Proposed Budget Tax Collection Prior ( ): This revenue source is generated from the property tax increment collected from prior years. $25,000 $20,000 $15,000 $10,000 $5,000 FY FY FY FY FY FY FY FY FY FY FY $10,000 Budgeted Proposed Budget Chapter Three Page 3-4

109 Sewer Division Miscellaneous Non-Operating Revenue ( ): This revenue source is used to track unspecified non-operating revenue that is not directly attributable to the revenue categories previously established in the budget $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 FY FY FY FY FY FY FY FY FY FY FY $20,000 Budgeted Proposed Budget Other sources of operating revenue for the sewer division include: Service Establishment Fee ( ) Sewer Lateral Installation ( ) Bad Debt Write-Off & Recovery ( ) Front Footage Fees ( ) Other Taxes ( ) Chapter Three Page 3-5

110 Sewer Division Sewer Treatment Department Department Description The Sewer Treatment Department is responsible for maintaining the safe and efficient operation of the sewer treatment facility. This involves operating the sewer treatment plant in compliance with all federal, state and local regulations and optimizing the sewer treatment process to maximize the effectiveness of the District's resources. Departmental Responsibilities The Sewer Treatment Department is responsible for compliance with the conditions of the Clean Water Act, the District's Waste Discharge permit, and with Regional Water Quality Control Board requirements. Responsibilities for this department also include maintaining an on-site laboratory, monitoring the operation of the treatment facility 24 hours a day, and conducting routine maintenance on equipment and at each process necessary to meet the required permits/regulations. Organizational Structure & Staffing Levels This year the District has assigned labor resources of 9.20 Full-Time Equivalent (FTE) employees to the Sewer Treatment Department. The FTE calculations for this department are as follows: 1 Title Range FTE Expense Operations Manager $ 87,456 Senior Plant Operator $ 227,286 Integrated Senior Plant Operator $ 49,832 Integrated Operator IV $ 48,942 Integrated Operator III $ 166,260 Integrated Operator II $ 109,035 Water Quality Chemist $ 65,044 Integrated Operator I $ 55,434 Total 9.20 $ 809,289 1 The positions that are assigned a FTE value of less than 1.0 are involved in the integrated operator program and are cross-trained with the Water Division, Water Resource Department. Chapter Three Page 3-6

111 Sewer Division Budget Overview The following illustration shows the amount of funds budgeted and the actual expenses over the past several years. $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 FY FY FY FY FY FY FY FY FY FY FY This year, the Sewer Treatment Department will be allocated $3,561,784 (not including asset acquisitions), which represents a decrease of $276,616 or a 6.17% decrease. Anticipated Issues for This Fiscal Year The following issues have been identified as important issues for the near future. The specific resolution to some of the issues presented below may need to be further analyzed by District staff and presented to the Board of Directors for the adoption of a specific policy, procurement or other action as deemed necessary. With the completion of the new biological processes, tertiary membranes, and ultraviolet disinfection process, the District will be able to produce a pristine recycled water supply. The staff members of the Treatment Department are continuing to operate the facilities in conjunction with the newly completed salinity control facilities and associated brineline. Chapter Three Page 3-7

112 Sewer Division Sewer Division - Treatment Labor Fiscal Year Budget $747,000 $807,126 $899,200 $860,776 $833,200 $879,201 $915,000 $912,311 $963,424 $901,086 $985,300 $815,417 $895,000 $910,499 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $809,289 Original Budget Expended Proposed Budget This budget category includes the base salaries, overtime, and standby expenses associated with the sewer treatment department staff members. Title Range FTE Expense Operations Manager $ 87,456 Senior Plant Operator $ 227,286 Integrated Senior Plant Operator $ 49,832 Integrated Operator IV $ 48,942 Integrated Operator III $ 166,260 Integrated Operator II $ 109,035 Water Quality Chemist $ 65,044 Integrated Operator I $ 55,434 Total 9.20 $ 809,289 Chapter Three Page 3-8

113 Sewer Division Sewer Division - Treatment xx Benefits Fiscal Budget Year $402,150 $443,715 $455,525 $443,475 $471,400 $500,417 $540,800 $509,624 $539,800 $518,057 $541,900 $423,601 $542,400 $445,074 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $405,495 Original Budget Expended Proposed Budget This budget category includes the District paid benefits for the staff members of the sewer treatment department. FICA (50013) $ 62,000 Life Insurance (50014) $ 3,680 Medical, Dental, Vision & Deferred Comp. (50016) $ 155,600 Disability Insurance (50017) $ 7,300 Workers' Compensation (50019) $ 21,900 PERS Employee (50021) $ 53,000 PERS Employer (50022) $ 92,375 Uniforms (50023) $ 2,800 Vacation and Sick Pay (50024) $ 5,000 Boot $200/Employee (50025) $ 1,840 Total $ 405,495 Chapter Three Page 3-9

114 Sewer Division Sewer Division - Treatment Repair & Maintenance - Structures Fiscal Budget Year $200,000 $259,324 $200,000 $298,286 $250,000 $251,078 $225,000 $279,593 $225,000 $303,103 $225,000 $428,437 $325,000 $246,471 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $275,000 Original Budget Expended Proposed Budget This budget category is used for the maintenance and repair of all sewer treatment plant related facilities. Miscellaneous Repairs and Maintenance $ 275,000 Total $ 275,000 Chapter Three Page 3-10

115 Sewer Division Sewer Division - Treatment Automation Control Fiscal Budget Year $50,000 $75,199 $85,000 $68,938 $75,000 $62,018 $65,000 $80,944 $70,000 $54,841 $65,000 $54,089 $65,000 $80,577 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $80,000 Original Budget Expended Proposed Budget Expenses incurred for the upkeep and maintenance of outside instrumentation and computer technicians. Such services include: repair and maintenance of the plant Supervisory Control And Data Acquisition (SCADA) system; repair and calibration of metering equipment; adjustments of electronically actuated valves; and the repair of plant and lift station alarm and electrical systems. Automation Control Expenses $ 80,000 Total $ 80,000 Chapter Three Page 3-11

116 Sewer Division Sewer Division - Treatment Chemicals Fiscal Budget Year $500,000 $554,781 $600,000 $477,965 $500,000 $625,154 $500,000 $409,154 $515,000 $443,062 $490,000 $330,274 $450,000 $522,486 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $500,000 Original Budget Expended Proposed Budget This budget category is used to provide chemicals necessary in the treatment of sewer. Treatment Chemicals $ 500,000 Total $ 500,000 Chapter Three Page 3-12

117 Sewer Division Sewer Division - Treatment Propane Fiscal Budget Year $10,000 $1,769 $2,500 $8,105 $5,000 $3,371 $5,000 $6,582 $5,000 $4,070 $5,000 $28,733 $5,000 $9,401 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $10,000 Original Budget Expended Proposed Budget Propane is sometimes needed to augment the methane gas produced to help maintain a warm operating temperature in the digesters through the winter. Operation requirements and winter temperatures dictate the amount of propane used throughout the year with the majority of the consumption occurring between November and March. The high propane usage in is attributed to the Digester Rehab Project. Propane $ 10,000 Total $ 10,000 Chapter Three Page 3-13

118 Sewer Division Sewer Division - Treatment Laboratory Supplies Fiscal Budget Year $32,000 $25,219 $30,000 $22,609 $30,000 $40,412 $32,500 $36,150 $45,000 $31,284 $30,000 $24,779 $30,000 $32,974 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $30,000 Original Budget Expended Proposed Budget This budget category includes the costs associated with purchasing supplies and equipment for the laboratory at the sewer treatment facility. Laboratory Supplies $ 30,000 Total $ 30,000 Chapter Three Page 3-14

119 Sewer Division Sewer Division - Treatment General Supplies & Expenses Fiscal Budget Year $1,000 $804 $1,000 $522 $1,000 $415 $1,000 $482 $1,000 $918 $1,000 $1,206 $1,000 $2,115 $2,500 $2,000 $1,500 $1,000 $500 $2,000 Original Budget Expended Proposed Budget This budget category includes the miscellaneous supplies and expenses related to the operation of the sewer treatment department. Supplies and Expenses $ 2,000 Total $ 2,000 Chapter Three Page 3-15

120 Sewer Division Sewer Division - Treatment Power Purchases Fiscal Budget Year $675,000 $712,385 $690,000 $641,257 $700,000 $742,794 $715,000 $783,106 $802,860 $859,939 $830,000 $796,947 $850,000 $784,608 $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $800,000 Original Budget Expended Proposed Budget This budget category includes all electrical power costs to operate the sewer treatment facility. Electrical Power Service for WRWRF Operations $ 800,000 Total $ 800,000 Chapter Three Page 3-16

121 Sewer Division Sewer Division - Treatment Laboratory Services Fiscal Budget Year $115,000 $126,189 $120,000 $105,161 $120,000 $112,918 $125,000 $74,161 $115,000 $121,498 $115,000 $111,837 $120,000 $105,450 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Original Budget Expended Proposed Budget $100,000 This budget category includes the cost of outside laboratory services for all regulatory monitoring requirements including items such as toxicity testing, priority pollutants, special sampling programs, influent/effluent testing and biosolids monitoring. Chemical Analyses Performed by Outside Laboratories $ 100,000 Total $ 100,000 Chapter Three Page 3-17

122 Sewer Division Sewer Division - Treatment Sewage Waste Disposal - Solids Fiscal Budget Year $280,000 $275,383 $300,000 $304,118 $300,000 $290,330 $300,000 $280,057 $300,000 $263,188 $300,000 $276,810 $300,000 $257,533 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $250,000 Original Budget Expended Proposed Budget This budget category includes the required annual operating costs associated with the removal, compost, and disposal of processed biosolids. Sewage Waste Disposal - Solids $ 250,000 Total $ 250,000 Chapter Three Page 3-18

123 Sewer Division Sewer Division - Treatment Brineline Operating Expenses Fiscal Budget Year $26,000 $32,520 $30,000 $41,160 $40,000 $102,375 $120,000 $137,044 $120,000 $152,990 $201,616 $150,194 $255,000 $287,277 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $300,000 Original Budget Expended Proposed Budget This budget category includes the annual costs for maintaining capacity in downstream salt conveyance facilities to Orange County Sanitation District and routine operating costs related to the operation of salt conveyance facilities owned by the District. Salt Conveyance and Permit Fees related to Brineline Operating Expenses $ 300,000 Total $ 300,000 Chapter Three Page 3-19

124 Sewer Division Sewer Administrative Services Department Department Description The Sewer Administrative Services Department is accountable for the overall safe, efficient and reliable operation of the sewer division which includes sewer treatment department and the laboratory. While the expenses related to the environmental control department are contained within the sewer division, the organizational structure is more conducive to have the Environmental Control personnel report to the Public Works Manager. Departmental Responsibilities The Sewer Administrative Services Department is responsible for ensuring the following: Management: The individuals in Management are responsible for managing the operational and planning functions of the District. This includes risk management, fund investment, Director information, policy management, human resources, and public relations. Accounting: The individuals in Accounting are responsible for all accounting functions which range from tracking District assets to maintaining accounts payable, accounts receivable, and payroll. Accounting is also responsible for maintaining fund balances, tracking of development impact fees, and maintaining the current budget. Customer Service: The individuals in Customer Service are responsible for all general customer related activities such as maintaining the customer service database, processing of utility billing, receiving all fees/charges, maintaining service records for the Department of Health Services. Engineering: The individuals in Engineering are responsible for all engineering related functions including: water and sewer modeling; GIS studies and applications; consultant and contractor oversight; development of design and construction standards; plan check and inspection services; and performing other related engineering studies and services. Organizational Structure & Staffing Levels This year the District has assigned labor resources of 8.55 Full-Time Equivalent (FTE) employees to the Administrative Department of the Sewer Division. The FTE calculation details for this department are as follows: Title Range FTE Expense General Manager $ 84,628 Chief Financial Officer $ 60,060 Water Resource Manager $ 24,646 Engineering Manager $ 54,810 Management Analyst $ 62,718 Administrative Supervisor $ 53,171 Water Resource Project Supervisor $ 17,584 Business System Analyst GIS $ 45,506 Engineering Technician III $ 37,039 Administrative Clerk IV $ 70,249 Engineering Technician I $ 33,486 Utility Service Worker I $ 113,671 Administrative Clerk III $ 27,296 Administrative Clerk II $ 22,715 Total 8.55 $ 707, 579 Chapter Three Page 3-20

125 Sewer Division Budget Overview The following illustration shows the amount of funds budgeted and the actual expenses over the past several years. $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 FY FY FY FY FY FY FY FY FY FY FY This year, the Sewer Administrative Services Department will be allocated $3,376,153 (not including asset acquisitions & capital improvements), which represents an increase of $78,058 or a 2.57% increase. Anticipated Issues for This Fiscal Year The following issues have been identified for the next fiscal year. The specific resolution to the issues presented below may need to be further analyzed by District staff and presented to the Board of Directors for the adoption of a specific policy, procurement or other action as deemed necessary. The District continues to underfund our actual depreciation expenses. This issue is most readily apparent in the annual financial audit which shows the following funded and unfunded depreciation expense. FY FY FY FY FY FY FY FY $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 Budgeted Depreciation Expense Total Depreciation Expense In order to adequately fund the repair and replacement of District facilities, additional funding is necessary. Chapter Three Page 3-21

126 Sewer Division Sewer Division Administrative Services Labor Fiscal Budget Year $655,050 $608,073 $708,050 $569,573 $631,600 $517,369 $690,000 $506,497 $644,309 $512,969 $660,000 $588,771 $700,000 $667,188 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $707,579 Original Budget Expended Proposed Budget This budget category includes the base salaries and expected overtime for the sewer administrative staff members. Title Range FTE Expense General Manager $ 84,628 Chief Financial Officer $ 60,060 Water Resource Manager $ 24,646 Engineering Manager $ 54,810 Management Analyst $ 62,718 Administrative Supervisor $ 53,171 Water Resource Project Supervisor $ 17,584 Business System Analyst GIS $ 45,506 Engineering Technician III $ 37,039 Administrative Clerk IV $ 70,249 Engineering Technician I $ 33,486 Utility Service Worker I $ 113,671 Administrative Clerk III $ 27,296 Administrative Clerk II $ 22,715 Total 8.55 $707,579 Chapter Three Page 3-22

127 Sewer Division Sewer Division Administrative Services Director Fees Fiscal Budget Year $15,000 $16,741 $15,000 $15,525 $15,000 $12,851 $15,000 $15,700 $16,000 $19,072 $19,000 $21,202 $20,000 $22,827 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $22,500 Original Budget Expended Proposed Budget Director related expenses for meetings, travel, seminars and related events will be expensed to this budget category. Director Fees and Other Related Expenses $ 22,500 Total $ 22,500 Chapter Three Page 3-23

128 Sewer Division Sewer Division Administrative Services xx Benefits Fiscal Budget Year $397,800 $358,618 $355,370 $344,572 $364,020 $310,791 $382,340 $331,547 $346,340 $341,452 $351,340 $477,108 $349,250 $496,912 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $395,074 Original Budget Expended Proposed Budget This budget category includes the District paid benefits for the staff members of the sewer administrative department. FICA (50013) $ 54,200 Life Insurance (50014) $ 3,500 Medical, Dental, Vision & Deferred Comp. (50016) $ 144,700 Disability Insurance (50017) $ 6,400 Workers' Compensation (50019) $ 19,100 PERS Employee (50021) $ 49,600 PERS Employer (50022) $ 103,300 Uniforms (50023) $ 2,564 Vacation & Sick Pay (50024) $ 10,000 Boot $200/Employee (50025) $ 1,710 Total $ 395,074 Chapter Three Page 3-24

129 Sewer Division Sewer Division Administrative Services Safety Equipment Fiscal Budget Year $7,500 $3,182 $7,500 $9,129 $8,500 $11,190 $10,000 $9,742 $10,000 $7,983 $10,000 $7,308 $10,000 $10,109 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $10,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with the purchase of safety equipment other applicable requirements. Safety Equipment and Supplies $ 10,000 Total $ 10,000 Chapter Three Page 3-25

130 Sewer Division Sewer Division Administrative Services Petroleum Products Fiscal Budget Year $15,000 $16,744 $17,500 $13,773 $15,000 $17,705 $17,500 $24,678 $22,500 $19,411 $22,500 $17,562 $20,000 $21,473 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $20,000 Original Budget Expended Proposed Budget This budget category represents the projected costs associated with the purchase of gasoline, oil and diesel fuel for District vehicles and equipment. Gasoline, Diesel, and Oil $ 20,000 Total $ 20,000 Chapter Three Page 3-26

131 Sewer Division Sewer Division Administrative Services Office Supplies Fiscal Budget Year $6,000 $1,039 $5,000 $2,700 $3,000 $544 $2,000 $4,069 $3,000 $4,014 $4,000 $4,845 $4,000 $8,571 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $4,000 Original Budget Expended Proposed Budget This budget category will be used for office supplies for the sewer division. Miscellaneous Office Supplies $ 4,000 Total $ 4,000 Chapter Three Page 3-27

132 Sewer Division Sewer Division Administrative Services General Supplies & Expenses Fiscal Budget Year $7,500 $15,871 $7,500 $17,034 $15,000 $18,786 $15,000 $15,765 $17,500 $17,694 $17,500 $27,949 $20,000 $28,266 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $25,000 Original Budget Expended Proposed Budget This budget category includes the miscellaneous supplies and expenses related to the operation of the sewer division. Supplies and Expenses $ 25,000 Total $ 25,000 Chapter Three Page 3-28

133 Sewer Division Sewer Division Administrative Services Dues & Subscriptions Fiscal Budget Year $10,000 $9,010 $10,000 $10,404 $10,000 $10,144 $10,000 $10,633 $11,500 $9,436 $10,000 $10,326 $10,000 $10,853 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $10,000 Original Budget Expended Proposed Budget This category includes all costs related to membership dues and periodical subscriptions for the sewer division during the fiscal year. In the prior fiscal year, the District was a member of the following organizations such as Water Environment Foundation (WEF), California Water Environment Association (CWEA), and Western Coalition of Arid States (WESTCAS). Dues and Subscriptions $ 10,000 Total $ 10,000 Chapter Three Page 3-29

134 Sewer Division Sewer Division Administrative Services Management & Administration Services Fiscal Year Budget $593,310 $593,310 $733,170 $733,170 $147,000 $147,000 $153,500 $153,500 $153,500 $153,500 $160,000 $160,000 $160,000 $160,015 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $189,000 Original Budget Expended Proposed Budget This category includes management and accounting services related to the operation of the sewer division. The expenses for this year will be considered in future years as a reimbursement to the Water Division Budget Categories Paid Entirely by the Water Division That Also Provide a Direct Benefit to the Sewer Division Total Expense Paid by Water Division Water Division Allocation Sewer Division Allocation Admin: Utility Billing Expenses (50%:50%) $ 150,000 $ 75,000 $ 75,000 Admin: Maintenance - Structures (50%:50%) $ 20,000 $ 10,000 $ 10,000 Public Works: R & M Vehicles & Equip (40%:60%) $ 200,000 $ 96,000 $ 104,000 $ 370,000 $ 181,000 $ 189,000 Chapter Three Page 3-30

135 Sewer Division Sewer Division Administrative Services Computer Expenses Fiscal Budget Year $45,000 $72,954 $70,000 $80,136 $75,000 $110,384 $85,000 $137,530 $95,000 $84,904 $95,000 $103,462 $95,000 $113,607 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $100,000 Original Budget Expended Proposed Budget This budget category will be used to enhance the sewer division computer systems. Miscellaneous Computer Hardware and Software $ 100,000 Total $ 100,000 Chapter Three Page 3-31

136 Sewer Division Sewer Division Administrative Services Education & Training Fiscal Budget Year $20,000 $12,144 $20,000 $11,261 $15,000 $7,487 $10,000 $12,964 $12,500 $6,569 $7,000 $5,922 $7,000 $9,475 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $9,000 Original Budget Expended Proposed Budget This budget category includes the costs associated with training individuals in the sewer division. Education and Training Expenses $ 9,000 Total $ 9,000 Chapter Three Page 3-32

137 Sewer Division Sewer Division Administrative Services Public Relations Fiscal Budget Year $14,000 $18,537 $15,500 $17,608 $18,000 $12,593 $18,500 $3,338 $15,000 $3,330 $9,000 $4,876 $13,000 $5,190 $50,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with public relations efforts, as well as all costs associated with printing business forms and public hearing notices and job announcements. In -18, all historical and future budget data for the Printing and Publications budget category ( ) was combined here. Public Relations $ 50,000 Total $ 50,000 Chapter Three Page 3-33

138 Sewer Division Sewer Division Administrative Services Travel Related Expenses Fiscal Budget Year $10,000 $7,082 $8,500 $7,221 $7,000 $3,747 $5,000 $6,759 $5,000 $5,094 $5,000 $5,436 $7,500 $6,502 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $7,000 Original Budget Expended Proposed Budget This budget category includes the travel-related expenses associated with the sewer division. Travel Related Expenses $ 7,000 Total $ 7,000 Chapter Three Page 3-34

139 Sewer Division Sewer Division Administrative Services Certifications & Renewals Fiscal Year Budget $5,500 $4,133 $5,500 $3,763 $5,500 $4,806 $5,000 $7,725 $5,000 $5,796 $5,000 $8,168 $7,000 $7,418 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $7,500 Original Budget Expended Proposed Budget This budget category will be used for sewer division employee certifications. Sewer Division Related Certifications $ 7,500 Total $ 7,500 Chapter Three Page 3-35

140 Sewer Division Sewer Division Administrative Services Licenses & Permits Fiscal Budget Year $40,000 $43,036 $42,500 $45,987 $45,000 $46,412 $45,000 $59,650 $50,000 $55,521 $50,000 $58,507 $60,000 $62,658 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $62,500 Original Budget Expended Proposed Budget This budget category represents the projected costs associated with operating licenses and permits required by agencies such as the State Water Resources Control Board and the Air Quality Management District. Licenses and Permits $ 62,500 Total $ 62,500 Chapter Three Page 3-36

141 Sewer Division Sewer Division Administrative Services Meeting Related Expenses Fiscal Budget Year $1,000 $3,895 $2,500 $4,083 $3,500 $5,094 $5,000 $3,161 $5,000 $3,199 $5,000 $3,185 $5,000 $4,550 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $ 5,000 Original Budget Expended Proposed Budget The District hosts numerous meetings throughout the year which include public tours, tours for school children, and several regional meetings for industry professionals. This budget category will be used for expenses related to meetings hosted or attended by the District for sewer related functions. Meeting Related Expenses $ 5,000 Total $ 5,000 Chapter Three Page 3-37

142 Sewer Division Sewer Division Administrative Services Department Utilities YVWD Services Fiscal Budget Year $1,600 $2,500 $2,000 $1,500 $1,000 $500 $2,000 Original Budget Expended Proposed Budget This budget category is used for all YVWD sewer services. YVWD Sewer services $ 2,000 Total $ 2,000 Chapter Three Page 3-38

143 Sewer Division Sewer Division Administrative Services Waste Disposal Fiscal Budget Year $10,000 $13,429 $12,500 $11,355 $12,500 $10,008 $12,500 $11,198 $12,500 $12,664 $12,500 $12,789 $13,000 $12,843 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $13,000 Original Budget Expended Proposed Budget This budget category represents the projected costs associated with waste disposal by the departments in the sewer division. Waste Disposal Costs $ 13,000 Total $ 13,000 Chapter Three Page 3-39

144 Sewer Division Sewer Division Administrative Services Telephone & Internet Fiscal Budget Year $17,000 $18,744 $16,500 $19,245 $20,000 $23,639 $23,000 $19,590 $20,000 $15,849 $20,000 $17,025 $152,045 $31,238 $30,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Original Budget Expended Proposed Budget This budget category represents the projected costs associated with telephone usage by the departments within the sewer division. Telephone Services $ 10,000 Internet Services $ 20,000 Total $ 30,000 Chapter Three Page 3-40

145 Sewer Division Sewer Division Administrative Services Drinking Water Fiscal Budget Year $1,000 $980 $1,000 $861 $1,000 $1,092 $1,000 $1,007 $1,000 $899 $1,000 $996 $1,000 $1,026 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $1,000 Original Budget Expended Proposed Budget This budget category represents the projected costs associated with drinking water usage by the departments within the sewer division. Drinking Water $ 1,000 Total $ 1,000 Chapter Three Page 3-41

146 Sewer Division Sewer Division Administrative Services Contractual Services Fiscal Budget Year $25,000 $29,440 $30,000 $33,332 $30,000 $31,393 $35,000 $30,923 $30,000 $30,887 $30,000 $51,586 $35,000 $69,087 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $70,000 Original Budget Expended Proposed Budget This budget category includes all contract service costs for equipment and services within the sewer division. These services include: building security monitoring, copier maintenance, GIS maintenance, printer maintenance, answering service, landscape services, APN database, underground service alert, and other miscellaneous services. Contractual Services $ 70,000 Total $ 70,000 Chapter Three Page 3-42

147 Sewer Division Sewer Division Administrative Services Legal Fiscal Budget Year $45,000 $42,752 $45,000 $54,886 $45,000 $49,452 $45,000 $41,877 $60,000 $27,694 $45,000 $33,268 $45,000 $70,806 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $45,000 Original Budget Expended Proposed Budget This budget category is used for all sewer related legal costs. Legal fees related to water issues will be expensed in the water division budget. Legal Expenses $ 45,000 Total $ 45,000 Chapter Three Page 3-43

148 Sewer Division Sewer Division Administrative Services Audit & Accounting Fiscal Budget Year $14,000 $11,318 $16,000 $16,073 $16,000 $16,448 $16,000 $15,563 $16,000 $12,200 $16,000 $10,485 $16,000 $10,755 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $16,000 Original Budget Expended Proposed Budget This budget category will be used for audit services incurred during this fiscal year. Audit and Accounting Services $ 16,000 Total $ 16,000 Chapter Three Page 3-44

149 Sewer Division Sewer Division Administrative Services Professional Services Fiscal Budget Year $300,000 $384,861 $300,000 $430,775 $400,000 $195,870 $250,000 $167,542 $200,000 $122,582 $150,000 $273,825 $150,000 $272,572 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $225,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with professional fees for the sewer division. This category will generally be used for labor consulting, legislative consulting, and engineering studies. Miscellaneous Professional Fees $ 225,000 Total $ 225,000 Chapter Three Page 3-45

150 Sewer Division Sewer Division Administrative Services Reserve Funds Fiscal Budget Year $1,191,120 $1,191,120 $327,260 $327,260 $457,000 $457,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $563,300 $563,300 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $500,000 Original Budget Expended Proposed Budget Prudent financial planning and fiscal responsibility includes anticipating and preparing for future funding requirements as well as unforeseen and unexpected emergencies, disasters, and other events. The District has established this annual reserve for its long-term organizational and operational stability and to enable the District to minimize significant rate fluctuations due to unforeseen and expected cash flow requirements during the year. This reserve fund is to ensure that the District accumulates, manages, maintains, and uses certain financial resources only for specific purposes. At the conclusion of this fiscal year, these funds will be transferred and designated to fund the replacement of sewer related infrastructure (depreciation reserves). Reserve Funds $ 500,000 Total $ 500,000 Chapter Three Page 3-46

151 Sewer Division Sewer Division Administrative Services xxxxx Sewer Infrastructure Replacement Fiscal Budget Year $786,300 $786,300 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 $700,000 $700,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $700,000 Original Budget Expended Proposed Budget This budget category represents funding necessary to replace depreciated assets of the sewer division such as treatment facilities, lift stations, interceptors, mainlines, outfall facilities, structures, buildings, cars, trucks, office equipment, shop equipment, computers, radios, construction equipment, and tools relative to the sewer operations. At the conclusion of this fiscal year, these funds will be transferred and designated to fund the replacement of sewer related infrastructure (depreciation reserves). Depreciation / Reserves $ 700,000 Total $ 700,000 Chapter Three Page 3-47

152 Sewer Division Sewer Division Administrative Services Insurance Fiscal Budget Year $115,000 $110,699 $115,000 $113,290 $115,000 $102,802 $115,000 $96,722 $105,000 $98,535 $105,000 $100,522 $100,000 $95,811 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $100,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with insurance coverage related to general, auto, and property insurance. General Liability, Errors and Omission & Automotive $ 100,000 Total $ 100,000 Chapter Three Page 3-48

153 Sewer Division Sewer Division Administrative Services Regulatory Compliance Fiscal Budget Year $65,000 $61,593 $50,000 $63,738 $44,500 $31,713 $95,000 $21,725 $40,000 $30,302 $42,000 $45,738 $35,000 $89,098 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $50,000 Original Budget Expended Proposed Budget This budget category will be used for regulatory compliance issues within the sewer division. Senate Bill 709 and Senate Bill 2351 Compliance $ 5,000 Miscellaneous Regulatory Compliance $ 45,000 Total $ 50,000 Chapter Three Page 3-49

154 Sewer Division Environmental Control Department Department Description The Environmental Control Department maintains and inspects the facilities related to the sewer collection system. This involves the routine maintenance and inspection associated with lift stations, sewer mainlines, force mainlines, and manholes, as well as pretreatment activities. Departmental Responsibilities The Environmental Control Department is responsible for maintaining the sewer collection system. This includes inspecting each of the District's manholes on a regular basis, preparing the collection system for wet weather conditions, conducting routine cleaning of the collection system, complying with all confined space regulations, and video inspecting sewer mainlines. The Environmental Control Department is also responsible for conducting industrial pretreatment inspections and brineline related activities. Organizational Structure & Staffing Levels This year the District has assigned labor resources of 8.00 Full-Time Equivalent (FTE) employees to the Environmental Control Department. The FTE calculations for this department are as follows: Title Range FTE Expense Regulatory & Environmental Control Mgr $ 106,152 Public Works Supervisor $ 91,563 Senior Utility Service Worker $ 16,135 Utility Service Worker IV $ 85,388 Integrated Operator II $ 41,259 Utility Service Worker III Utility Service Worker II Utility Service Worker I $ 75,600 $ 68,643 $ 80,680 Total 8.00 $565,420 Chapter Three Page 3-50

155 Sewer Division Budget Overview The following illustration shows the amount of funds budgeted and the actual expenses over the past several years. $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 FY FY FY FY FY FY FY FY FY FY FY This year, the Environmental Control Department will be allocated $1,297,722 (not including asset acquisitions & capital improvements), which represents an increase of $63,722 as compared to the previous year, or a 7.86% increase. Anticipated Issues for This Fiscal Year The following issues have been identified as important issues for the near future. The specific resolution to some of the issues presented below may need to be further analyzed by District staff and presented to the Board of Directors for the adoption of a specific policy, procurement or other action as deemed necessary. The District staff continues to improve our ability to respond to various line maintenance situations. The heavy-duty sewer mainline cleaning vehicles allocated to this department significantly improve the maintenance activities throughout the collection system. The District staff continues to utilize video equipment to conduct routine inspections of the sewer collection system. The Environmental Control staff will be analyzing the costs and benefits of purchasing a video vehicle to be better prepared to inspect the sewer collection system. Chapter Three Page 3-51

156 Sewer Division Sewer Division Environmental Control Labor Fiscal Budget Year $217,740 $206,315 $213,570 $182,393 $420,000 $207,279 $240,000 $247,352 $268,053 $351,806 $310,000 $417,516 $465,000 $457,444 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $565,420 Original Budget Expended Proposed Budget This budget category includes the base salaries and expected overtime for the environmental control staff members. The Environmental Control Officer and pretreatment functions are included within this departmental budget. Title Range FTE Expense Regulatory & Environmental Control Manager $ 106,152 Public Works Supervisor $ 91,563 Senior Utility Service Worker $ 16,135 Utility Service Worker IV $ 85,388 Integrated Operator II $ 41,259 Utility Service Worker III $ 75,600 Utility Service Worker II $ 68,643 Utility Service Worker I $ 80,680 Total 8.00 $ 565,420 Chapter Three Page 3-52

157 Sewer Division Sewer Division Environmental Control xx Benefits Fiscal Budget Year $126,700 $122,816 $120,205 $107,094 $221,480 $121,047 $142,280 $148,009 $151,780 $210,425 $209,300 $233,548 $243,000 $219,712 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $272,302 Original Budget Expended Proposed Budget This budget category includes the District paid benefits for the staff members of the environmental control department. FICA (50013) $ 43,302 Life Insurance (50014) $ 3,200 Medical, Dental, Vision & Deferred Comp (50016) $ 134,400 Disability Insurance (50017) $ 5,100 Workers' Compensation (50019) $ 15,300 PERS Employee (50021) $ 25,000 PERS Employer (50022) $ 40,000 Uniforms (50023) $ 2,400 Vacation and Sick Pay (50024) $ 2,000 Boot $200/Employee (50025) $ 1,600 Total $ 272,302 Chapter Three Page 3-53

158 Sewer Division Sewer Division Environmental Control Repair & Maintenance - Structures Fiscal Budget Year $300,000 $286,362 $320,000 $305,313 $320,000 $264,535 $335,000 $272,718 $325,000 $230,218 $270,000 $228,243 $270,000 $218,613 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $225,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with maintaining the District s sewer collection facilities. This includes ADS Flow Monitors, repair of manholes, sewer mainlines, trench failures, service laterals and force mainlines. ADS Flow Monitors $ 48,000 Manhole Repairs $ 50,000 Video Inspections $ 75,000 Root Intrusion Control $ 30,000 Roadway Subsidence Repair - water division labor and benefits, materials, equipment, and contractor paving services. $ 22,000 $ 225,000 Chapter Three Page 3-54

159 Sewer Division Sewer Division Environmental Control General Supplies & Expenses Fiscal Budget Year $1,000 $302 $1,000 $2,165 $1,000 $536 $1,000 $731 $1,000 $267 $1,000 $934 $1,000 $284 $2,500 $2,000 $1,500 $1,000 $500 $1,000 Original Budget Expended Proposed Budget This budget category includes the miscellaneous supplies and expenses related to the operation of the environmental control department. Supplies and Expenses $1,000 $1,000 Chapter Three Page 3-55

160 Sewer Division Sewer Division Environmental Control Lift Station No. 1 Fiscal Budget Year $70,000 $75,877 $70,000 $75,257 $70,000 $209,307 $90,000 $299,224 $100,000 $131,989 $85,000 $75,667 $125,000 $56,782 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $70,000 Original Budget Expended Proposed Budget Lift Station No. 1 is located on Live Oak Canyon Road, south of Interstate 10. The annual expenses for Lift Station No. 1 include electric service and miscellaneous repairs and maintenance. In FY we incurred temporary generator rental and other expenses related the new generator replacement. In FY we incurred additional repair and maintenance expenses due to the force main break. Utilities - Electricity $ 35,000 Miscellaneous Improvements $ 35,000 $ 70,000 Chapter Three Page 3-56

161 Sewer Division Sewer Division Environmental Control Lift Station No. 2 Fiscal Budget Year $11,000 $11,139 $12,000 $9,746 $10,000 $9,596 $18,000 $30,974 $20,000 $11,914 $15,000 $53,122 $16,000 $59,984 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $30,000 Original Budget Expended Proposed Budget Lift Station No. 2 is located on Calimesa Boulevard between Cherry Valley Boulevard and Singleton Road, north of Interstate 10. The annual expenses for Lift Station No. 2 include electric service and miscellaneous repairs and maintenance. Utilities - Electricity $ 8,000 Miscellaneous Supplies and Expenses $ 22,000 Total $ 30,000 Chapter Three Page 3-57

162 Sewer Division Sewer Division Environmental Control Lift Station No. 3 Fiscal Budget Year $5,000 $5,698 $7,500 $2,644 $5,000 $2,838 $13,000 $4,813 $5,000 $3,297 $5,000 $4,492 $5,000 $3,130 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $15,000 Original Budget Expended Proposed Budget Lift Station No. 3 is located west of Villa Calimesa Mobile Home Park. The annual expenses for Lift Station No. 3 include electric service and miscellaneous repairs and maintenance. Utilities - Electricity $ 2,500 Miscellaneous Supplies and Expenses $ 12,500 Total $ 15,000 Chapter Three Page 3-58

163 Sewer Division Sewer Division Environmental Control Lift Station No. 4 Fiscal Budget Year $12,500 $50,077 $20,000 $11,764 $20,000 $10,246 $25,000 $19,216 $20,000 $27,447 $20,000 $30,445 $40,000 $17,643 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $50,000 Original Budget Expended Proposed Budget Lift Station No. 4 is located on Calimesa Boulevard between Mesa Grande and Sandalwood Drive. The annual expenses for Lift Station No. 4 include electric service and miscellaneous repairs and maintenance. Utilities - Electricity $ 11,000 Miscellaneous Supplies and Expenses $ 39,000 Total $ 50,000 Chapter Three Page 3-59

164 Sewer Division Sewer Division Environmental Control Lift Station No. 8 Fiscal Budget Year $2,500 $1,848 $3,000 $550 $3,000 $623 $3,000 $1,226 $3,000 $1,549 $3,000 $600 $3,000 $832 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $3,000 Original Budget Expended Proposed Budget Pump Station No. 8 was placed into service in Fiscal Year This facility is located on Hampton Road west of Yucaipa Boulevard in western Yucaipa. The annual expenses for Pump Station No. 8 include electric service and miscellaneous repairs and maintenance. Utilities - Electricity $1,500 Miscellaneous Supplies and Expenses $1,500 Total $ 3,000 Chapter Three Page 3-60

165 Sewer Division Sewer Division Environmental Control Pretreatment Fiscal Budget Year $37,500 $38,491 $52,500 $59,231 $52,500 $53,712 $62,500 $53,480 $64,000 $29,113 $64,000 $48,283 $66,000 $79,399 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $66,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with pretreatment for the sewer division. This category includes laboratory services, computer services, labor consulting, legislative consulting and engineering studies. This budget line item was new in fiscal year. The history totals are a combination of Professional Services ( ) and Laboratory Services ( ) from prior years. Chemical Analyses Performed by Outside Laboratories $ 6,000 Pretreatment Program / Engineering Services $ 60,000 Total $ 66,000 Chapter Three Page 3-61

166 Sewer Division Sewer Division Debt Service Department Description The Sewer Debt Service expenditures are associated with the State Revolving Fund (SRF) loan for the expansion and upgrade of the Wochholz Regional Water Recycling Facility and various recycled water facilities. Background of Debt Issuance Wochholz Regional Water Recycling Facility Expansion - The Yucaipa Valley Water District has secured a $44,748,356 low interest loan (2.4% interest rate) for the expansion and upgrade of the Wochholz Regional Water Recycling Facility. The District received full disbursement of the loan fund in FY and annual repayment of $2,923,669 started in FY based on the following schedule: $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 FY FY FY FY FY FY FY FY FY FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Principal Paid Principal Payment Due Interest Paid Interest Payment Due The annual loan payments are due on September 10 th. The loan extends until September 10, Chapter Three Page 3-62

167 Sewer Division Yucaipa Valley Regional Brineline - The Yucaipa Valley Water District has secured a $9,752,100 low interest loan (2.7% interest rate) for the construction of the Yucaipa Valley Regional Brineline. The construction cost for this facility was $19,706,156 which was also funded by several grants and cash. The District received full disbursement of the loan fund in FY and annual repayment of $649,274 started in FY based on the following schedule: $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 FY FY FY FY FY FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 Principal Paid Principal Payment Interest Paid Interest Payment The annual loan payments are due on December 31 st. The loan extends until December 31, Chapter Three Page 3-63

168 Sewer Division Wochholz Improved Salinity Effluent Project (W.I.S.E.) - The Yucaipa Valley Water District has secured a $2,988,095 low interest loan (2.2% interest rate) for the construction of the reverse osmosis equipment at the Wochholz Regional Water Recycling Facility to achieve compliance with the Regional Water Quality Control Board Basin Plan objectives. The construction cost for this facility was $5,003,170 which was also funded by grants and cash. The District received full disbursement of the loan fund in FY and annual repayment of $185,251 started in FY based on the following schedule: $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 FY FY FY FY FY FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 Principal Paid Principal Payment Interest Paid Interest Payment The annual loan payments are due on March 31 st. The loan extends until March 31, Chapter Three Page 3-64

169 Sewer Division Recycled Water Reservoir R The Yucaipa Valley Water District has secured a $871,570 low interest loan (2.2% interest rate) for the construction of the Recycled Water Reservoir Complex R The construction cost for this facility was $4,177,087 which was also funded by grants and cash. The District received full disbursement of the loan fund in FY and annual repayment of $54,277 started in FY based on the following schedule: $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 FY FY FY FY FY FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 Principal Paid Principal Payment Interest Paid Interest Payment The annual loan payments are due on March 31 st. The loan extends until March 31, Chapter Three Page 3-65

170 Sewer Division Crow Street Recycled Water Pipeline and Booster B The Yucaipa Valley Water District has secured a $310,179 low interest loan (2.2% interest rate) for the construction of the Crow Street Recycled Water Pipeline and Recycled Water Booster Station B The construction cost for this facility was $2,972,167 which was also funded by grants and cash. The District received full disbursement of the loan fund in FY and annual repayment of $19,254 started in FY based on the following schedule: $25,000 $20,000 $15,000 $10,000 $5,000 FY FY FY FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Principal Paid Principal Payment Interest Paid Interest Payment The annual loan payments are due on March 31 st. The loan extends until March 31, Chapter Three Page 3-66

171 Sewer Division Sewer Division Debt Service Debt Service Principal - WRWRF Fiscal Budget Year $1, $1,863,069 $1,909,500 $1,907,783 $1,953,500 $1,953,570 $2,000,455 $2,000,455 $2,048,466 $2,048,466 $2,097,629 $2,097,629 $2,147,975 $2,147,973 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $2,199,524 Original Budget Expended Proposed Budget This budget category will be used for expenses related to the principal payment of the State Revolving Fund Loan for the Wochholz Regional Water Recycling Facility. Prior debt service payments were related to the 1995 Refunding Bonds for the construction of the tertiary treatment facilities. Debt Service Principal Payment $ 2,199,524 Total $ 2,199,524 Chapter Three Page 3-67

172 Sewer Division Sewer Division Debt Service Debt Service Principal - Brineline Fiscal Budget Year $156,395 $383,889 $391,372 $391,372 $401,939 $401,939 $412,790 $412,791 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $423,936 Original Budget Expended Proposed Budget This budget category will be used for expenses related to the principal payment of the State Revolving Fund Loan for the Brineline Facility. Debt Service Principal Payment $ 423,936 Total $ 423,936 Chapter Three Page 3-68

173 Sewer Division Sewer Division Debt Service Debt Service Principal - W.I.S.E. Fiscal Budget Year $117,482 $116,576 $122,303 $122,303 $125,600 $125,283 $127,970 $127,966 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $130,782 Original Budget Expended Proposed Budget This budget category will be used for expenses related to the principal payment of the State Revolving Fund Loan for the Wochholz Improved Salinity Effluent (WISE) Project. Debt Service Principal Payment $ 130,782 Total $ 130,782 Chapter Three Page 3-69

174 Sewer Division Sewer Division Debt Service Debt Service Principal R 10.3 & Booster Station Fiscal Budget Year $65,000 $37,887 $34,080 $34,080 $36,663 $36,691 $37,495 $37,493 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $38,318 Original Budget Expended Proposed Budget This budget category will be used for expenses related to the principal payment of the State Revolving Fund Loan for the Reservoir R 10.3 & Booster Station Project. Debt Service Principal Payment $ 38,318 Total $ 38,318 Chapter Three Page 3-70

175 Sewer Division Sewer Division Debt Service Debt Service Principal - Crow Street & B-12.1 Fiscal Budget Year $65,000 $18,357 $18,357 $13,795 $13,795 $12,734 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $13,014 Original Budget Expended Proposed Budget This budget category will be used for expenses related to the principal payment of the State Revolving Fund Loan for the recycled water pipeline in Crow Street and the recycled water booster B-12.1 Debt Service Principal Payment $ 13,014 Total $ 13,014 Chapter Three Page 3-71

176 Sewer Division Sewer Division Debt Service Debt Service Interest Fiscal Budget Year $1,060,600 $1,060,600 $1,017,040 $1,015,886 $970,100 $970,099 $1,469,867 $1,270,593 $1,215,856 $1,213,180 $1,153,830 $1,156,388 $1,091,707 $1,092,768 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $1,091,707 Original Budget Expended Proposed Budget This budget category will be used for expenses related to the interest payment of the State Revolving Fund loans for the Wochholz Regional Water Recycling facility, the Yucaipa Valley Regional Brineline, the WISE equipment, the R-10.3 and booster station and the Crow Street pipeline and the Booster B-12.1facility. Debt Service Interest Payment - WRWRF $ 775,696 Debt Service Interest Payment - Brineline $ 236,483 Debt Service Interest Payment - WISE $ 57,285 Debt Service Interest Payment R-10.3 & Booster Station $ 16,784 Debt Service Interest Payment - Crow St. & B-12.1 $ 5,459 Total $ 1,091,707 Chapter Three Page 3-72

177 Sewer Division Sewer Division Debt Service Rate Stabilization Fund For Use for Fund Transfers Fiscal Year Budget $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 Original Budget Expended Proposed Budget This budget category will be used to establish a fund for stabilizing sewer rates in the future. This fund will be established by a sewer division operating fund transfer. Rate Stabilization Funding $ 0 Total $ 0 Chapter Three Page 3-73

178 Sewer Division Sewer Division Debt Service Plant Support Facilities Fiscal Budget Year $19,710 $19,710 $19,710 $19,710 $20,000 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 Original Budget Expended Proposed Budget In June 1993, the District entered into a Santa Ana Regional Interceptor (SARI) Discharge Agreement with San Bernardino Valley Municipal Water District. This agreement allocates 108,000 gallons per day of SARI pipeline capacity to Yucaipa Valley Water District. The District has committed to purchase the capacity for a sum of $394,200, payable in twenty (20) annual installments of $19,710. The final payment was paid in. Annual Installment $ 0 Total $ 0 Chapter Three Page 3-74

179 Sewer Division Asset Acquisition Sewer Division Budgetary Description The Asset Allocation portion of the operating budget is used for the purchase of specific fixed assets which are generally greater than $5,000. This portion of the budget will be used by the accounting department to appropriately categorize and track the purchase of fixed assets. Procurement Methodology The following schematic diagram illustrates the methodology used by the District staff to secure the purchase of the fixed assets. General Procedure for Asset Evaluation & Procurement Potential asset procurement(s) are reviewed by departmental supervisors and management throughout the year as specific needs arise Potential asset(s) are considered important and scheduled for planned procurement in the next fiscal year operating budget Potential asset procurement(s) are considered vital and scheduled for immediate procurement by the Board of Directors Potential asset(s) are presented to the Board of Directors at a budget workshop for possible procurement during the next fiscal year No Board Approves Budgeted Asset Procurement Yes Potential asset procurement(s) are included in the annual operating budget as a guide for the fiscal year Justification for purchasing the asset is presented to a committee of the Board of Directors for consideration Committee Members Approve Purchase of Asset Yes A Director Memorandum is presented to the Board of Directors with supporting documentation to justify the purchase of the asset No Yes Board of Directors Approve the Purchase of Asset No Asset Purchased by the District At a minimum, the District staff will present all purchases to a committee of the Board prior to presenting the potential purchase to the Board of Directors for action. In the case of a planned purchase, the entire Board will be able to review the purchase of an asset at a budget workshop prior to being presented to a committee. It is important to recognize that all budget workshops, committee meetings, and board meetings are open to the public. Chapter Three Page 3-75

180 Sewer Division As a general rule of thumb, asset acquisition will be funded by existing reserve funds. Therefore, the budget will have an offsetting amount of reserve funds added to the revenue portion of the budget for each asset identified below. Budget Overview The following summary represents the total acquisition allocation by department for the sewer division. Sewer Division Department Requesting Asset Acquisition Estimated Cost Associated with the Proposed Asset Acquisitions Sewer Treatment Department $ 0 Sewer Administrative Services $ 0 Department Environmental Control $ 0 Department Total $ 0 Chapter Three Page 3-76

181 Sewer Division Sewer Division Asset Acquisition Sewer Treatment Department The Sewer Treatment Department has identified the following assets for acquisition. No Assets Anticipated to be Acquired $ 0 Total $ 0 Chapter Three Page 3-77

182 Sewer Division Sewer Division Asset Acquisition Sewer Administrative Services Department The Sewer Administration Department has the following acquisitions planned for the fiscal year. No Assets Anticipated to be Acquired $ 0 Total $ 0 Chapter Three Page 3-78

183 Sewer Division Sewer Division Asset Acquisition Environmental Control Department The following assets have been identified for acquisition by the Environmental Control department. No Assets Anticipated to be Acquired $ 0 Total $ 0 Chapter Three Page 3-79

184 Chapter Four Fiscal Year Recycled Water Division Operating Budget Chapter Four Page 4-1

185 Recycled Water Division Revenue Analysis Sources of Revenue The recycled water division receives revenue from a number of different sources with the major sources consisting of the following: Recycled Water - Commodity Charges ( ): This revenue source is the variable component of the recycled water sales that is based on the amount of recycled water consumed by our customers. Recycled water sales represent the largest single revenue source in the Recycled Water Division. However, as a variable revenue component, this revenue source is directly dependent on the amount of water consumed. It is highly subject to seasonal variations and climatic changes. Construction Water Commodity Charges ( ): This revenue source is highly variable recycled water consumption revenue collected from developers and contractors for construction purposes. The amount of revenue generated from this source is directly dependent on the timing and magnitude of new construction in our service area. A similar revenue category exists for in the water division for potable water used for construction purposes. Recycled Water - Service Demand Charge ( ): This revenue source is the fixed rate component charged to all recycled water customers. Since this is a fixed charge, the estimated amount of revenue derived from this source is fairly constant year to year. $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 FY FY FY FY FY FY FY FY FY FY FY $551,425 Budgeted Proposed Budget $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 FY FY FY FY FY FY FY FY FY FY FY $20,000 Budgeted Proposed Budget $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 FY FY FY FY FY FY FY FY FY FY FY $60,000 Budgeted Proposed Budget Chapter Four Page 4-2

186 Construction Water Minimum Charge ( ): This revenue source is the fixed rate component charged to all customers using recycled water for construction purposes. Like the commodity charge above, since these costs are associated with development, they are also highly variable. $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 FY FY $5,000 FY FY FY FY FY FY FY FY FY Penalty Late Charges ( ): This revenue source is generated from late payments of sewer services. The District s late charges are 10% for the first month and 0.5% for any unpaid balance every month thereafter. This late charge is not intended to represent an interest rate or cost of money, but rather a penalty charge for late payment on an account. Interest Earnings ( ): This revenue source is generated from investment interest earnings. The District s investment policy utilizes Local Agency Investment Fund (LAIF) as the predominant investment vehicle. Significantly lesser amounts are invested in the U.S. Securities and money market funds. $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 FY FY FY FY FY FY FY FY FY FY FY $1,000 Budgeted Proposed Budget $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 FY FY FY FY FY FY FY FY FY FY FY $10,000 Budgeted Proposed Budget Chapter Four Page 4-3

187 Property Tax Unsecured ( ): This revenue source is generated from the unsecured portion of the property tax increment received by the District from properties within the District s service area. Unsecured property taxes are those taxes collected on property that can be relocated and is not real estate. The tax is assessed against such things as business equipment, fixtures, boats and airplanes. Property Tax Secured ( ): This revenue source is generated from the secured portion of the property tax increment received by the District from properties within the District s service area. Secured property taxes are those taxes collected on real property such as land and structures. Tax Collection Prior ( ): This revenue source is generated from the property tax increment collected from prior years. $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 FY FY FY FY FY FY FY FY FY FY FY $10,000 Budgeted Proposed Budget $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 FY FY FY FY FY FY FY FY FY FY FY $110,000 Budgeted Proposed Budget $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 FY FY FY FY FY FY FY FY FY FY FY $10,000 Budgeted Proposed Budget Other sources of operating revenue for the recycled division include: Meter/Lateral Installation ( ) Revenue-Other, Operating ( ) Other Taxes ( ) Misc. Non-Operating Revenue ( ) Chapter Four Page 4-4

188 Recycled Water Division Recycled Water Department Department Description The Recycled Water Division consists of individuals assigned to other duties that work together to implement, monitor, inspect, operate and perform the required duties of the recycled water enterprise. Departmental Responsibilities The Recycled Water Department is responsible for developing the District s activities related to recycled water service in the community. Organizational Structure & Staffing Levels This year the District has assigned labor resources of 4.55 Full-Time Equivalent (FTE) employees for the Recycled Water Division. The FTE calculation details for this department are as follows: Title Range FTE Expense General Manager $ 18,806 Public Works Manager $ 30,975 Water Resource Manager $ 24,646 Operations Manager $ 21,864 Management Analyst $ 53,758 Water Resource Project Supervisor $ 17,584 Public Works Supervisor $ 48,172 Senior Utility Service Worker $ 8,067 Utility Service Worker IV $ 7,173 Integrated Operator II $ 20,630 Utility Service Worker III $ 37,799 Utility Service Worker II $ 34,323 Utility Service Worker I $ 40,340 Total 4.55 $364,137 Chapter Four Page 4-5

189 Recycled Water Division Budget Overview The following illustration shows the amount of funds budgeted and the actual expenses over the past several years. $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 FY FY FY FY FY FY FY FY FY FY FY Budgeted Proposed Budget This year, the administrative service department will be allocated $796,425, which represents an increase of $139,325 as compared to the previous year, or a 21.20% increase. Anticipated Issues for This Fiscal Year The following issues have been identified for this fiscal year. The specific resolution to the issues presented below may need to be further analyzed by District staff and presented to the Board of Directors for the adoption of a specific policy, procurement or other action as deemed necessary. The District continues to underfund our actual depreciation expenses. This issue is most readily apparent in the annual financial audit which shows the following portion of funded depreciation expense. FY FY FY FY FY FY FY FY FY $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 of Budgeted Depreciation Expense Total of Depreciation Expense In order to adequately fund the repair and replacement of District facilities, additional funding is necessary in this line item. Chapter Four Page 4-6

190 Recycled Water Division Recycled Water Division Administrative Services Department Labor Fiscal Budget Year $81,500 $91,151 $76,900 $148,162 $18,839 $78,400 $21,572 $100,632 $85,272 $226,630 $204,284 $275,000 $229,236 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $364,137 Original Budget Expended Proposed Budget This budget category includes the base salaries and expected overtime for the recycled water division. Title Range FTE Expense General Manager $ 18,806 Public Works Manager $ 30,975 Water Resource Manager $ 24,646 Operations Manager $ 21,864 Management Analyst $ 53,758 Water Resource Project Supervisor $ 17,584 Public Works Supervisor $ 48,172 Senior Utility Service Worker $ 8,067 Utility Service Worker IV $ 7,173 Integrated Operator II $ 20,630 Utility Service Worker III $ 37,799 Utility Service Worker II $ 34,323 Utility Service Worker I $ 40,340 Total 4.55 $ 364,137 Chapter Four Page 4-7

191 Recycled Water Division Recycled Water Division Administrative Services Department Director Fees Fiscal Budget Year $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $5,000 Original Budget Expended Proposed Budget Director related meeting reimbursement expenses for seminars and related events. Director Fees, Travel, Seminars and Other Expenses $ 5,000 $ 5,000 Chapter Four Page 4-8

192 Recycled Water Division Recycled Water Division Administrative Services Department xx Benefits Fiscal Year Budget $43,000 $40,393 $38,780 $4,539 $69,913 $13,785 $37,215 $15,597 $11,150 $33,995 $31,900 $62,353 $51,600 $81,118 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $91,138 Original Budget Expended Proposed Budget This budget category includes the District paid benefits for the staff members of the recycled water division. FICA (50013) $ 20,000 Life Insurance (50014) $ 1,820 Medical, Dental, Vision & Deferred Comp. (50016) $ 30,000 Disability Insurance (50017) $ 3,300 Workers' Compensation (50019) $ 4,000 PERS Employee (50021) $ 11,000 PERS Employer (50022) $ 18,243 Uniforms (50023) $ 1,365 Vacation / Sick Leave $ 500 Boot $200/Employee (50025) $ 910 Total $ 91,138 Chapter Four Page 4-9

193 Recycled Water Division Recycled Water Division Administrative Services Department Repair & Maintenance Structures Fiscal Budget Year $8,500 $24,880 $25,000 $7,546 $7,500 $3.282 $7,500 $45,381 $45,000 $59,529 $50,000 $21,308 $20,000 $68,212 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $25,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with the maintenance and repair of recycled water related facilities. General Maintenance for Recycled Water Facilities $ 20,000 Reservoir Inspections $ 5,000 $ 25,000 Chapter Four Page 4-10

194 Recycled Water Division Recycled Water Division Administrative Services Department Repair & Maintenance Valves Fiscal Budget Year $5,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 Original Budget Expended Proposed Budget The Recycled Water Division oversees the operation and maintenance of the District s twenty-nine recycled water specialty valves. This program involves the maintenance of the following types of valves: 12 pressure reducing valves; 5 pump control valves; 5 float control valves; and 7 pressure relief valves. Equipment and parts associated with the maintenance of Cla-valves. This does not include the labor from the Water Resources Department, Engineering Department or Utility Service Department. $ 5,000 $ 5,000 Chapter Four Page 4-11

195 Recycled Water Division Recycled Water Division Administrative Services Department Repair & Maintenance Pipelines Fiscal Budget Year $143 $5,000 $2,500 $132 $2,500 $6,064 $2,500 $7,500 $3,282 $5,000 $11,140 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $5,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with maintaining the District s recycled transmission and distribution facilities. Costs are reflective of repair and replacement of recycled pipelines and related infrastructure encroachments. General Maintenance for Recycled Water Pipelines $ 5,000 $ 5,000 Chapter Four Page 4-12

196 Recycled Water Division Recycled Water Division Administrative Services Department Repair & Maintenance Service Lines Fiscal Budget Year $144 $5,000 $2,500 $667 $80,000 $4,684 $25,000 $13,766 $15,000 $17,806 $5,000 $26,189 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $15,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with maintaining the District s recycled water service lines. General Maintenance for Recycled Water Service Lines $ 15,000 $ 15,000 Chapter Four Page 4-13

197 Recycled Water Division Recycled Water Division Administrative Services Department Repair & Maintenance Fire Hydrants Fiscal Budget Year $1,000 $1,000 $2,500 $5,343 $2,500 $632 $5,000 $5,000 $2,500 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $1,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with maintaining the District s recycled water fire hydrants. General Maintenance for Recycled Water Fire Hydrants $ 1,000 $ 1,000 Chapter Four Page 4-14

198 Recycled Water Division Recycled Water Division Administrative Services Department Repair & Maintenance Meters Fiscal Budget Year $250 $500 $500 $1,162 $500 $179 $1,500 $365 $1,500 $26,113 $25,000 $2,105 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $4,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with maintaining the District s recycled water meters. General Maintenance for Recycled Water Meters $ 4,000 $ 4,000 Chapter Four Page 4-15

199 Recycled Water Division Recycled Water Division Administrative Services Department General Supplies & Expenses Fiscal Budget Year $150 $57 $250 $250 $27 $250 $250 $174 $250 $4,426 $2,000 $5,538 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $2,500 Original Budget Expended Proposed Budget This budget category includes the miscellaneous supplies and expenses related to the operation of the recycled division. Supplies and Expenses $ 2,500 $ 2,500 Chapter Four Page 4-16

200 Recycled Water Division Recycled Water Division Administrative Services Department Utilities Power Purchases Fiscal Budget Year $2,524 $3,459 $124,968 $3,459 $77,720 $103,162 $85,000 $85,916 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $85,000 Original Budget Expended Proposed Budget This budget category includes all electrical power costs related to the operation of the recycled division. Electrical Power Costs $ 85,000 $ 85,000 Chapter Four Page 4-17

201 Recycled Water Division Recycled Water Division Administrative Services Department Dues & Subscriptions Fiscal Year Budget $1,500 $3,774 $750 $3,788 $3,000 $3,453 $4,000 $3,461 $4,000 $4,417 $4,000 $3,556 $6,500 $4,784 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $4,000 Original Budget Expended Proposed Budget This category includes all costs related to membership dues and periodical subscriptions for the recycled water division during the fiscal year. Dues and Subscriptions $ 4,000 Total $4,000 Chapter Four Page 4-18

202 Recycled Water Division Recycled Water Division Administrative Services Department Computer Expenses Fiscal Budget Year $2,000 $1,167 $1,000 $3,498 $1,500 $620 $1,000 $1,375 $1,500 $3,361 $5,000 $8,621 $7,500 $9,659 $9,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 Original Budget Expended Proposed Budget This budget category has been established to include the costs related to modifications and improvements in the operation of the computer systems. Computer Purchases and Network Maintenance $ 9,000 Total $ 9,000 Chapter Four Page 4-19

203 Recycled Water Division Recycled Water Division Administrative Services Department Education & Training Fiscal Budget Year $2,500 $108 $2,500 $3,332 $2,500 $512 $2,500 $3,036 $3,500 $5,453 $3,500 $2,375 $4,000 $4,254 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $4,000 Original Budget Expended Proposed Budget This budget category includes the costs associated with training individuals in the recycled water division. Education and Training Expenses $ 4,000 Total $ 4,000 Chapter Four Page 4-20

204 Recycled Water Division Recycled Water Division Administrative Services Department Public Relations Fiscal Budget Year $2,075 $4,130 $5,250 $5,395 $4,000 $3,676 $6,000 $1,215 $4,500 $1,978 $4,500 $2,297 $3,500 $1,408 $2,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with public relations efforts, as well as all costs associated with printing business forms and public hearing notices and job announcements. In -18, all historical and future budget data for the Printing and Publications budget category ( ) was combined here. Public Relations $ 2,000 Total $ 2,000 Chapter Four Page 4-21

205 Recycled Water Division Recycled Water Division Administrative Services Department Travel Related Expenses Fiscal Budget Year $1,500 $95 $1,500 $1,346 $1,000 $96 $1,000 $1,265 $1,000 $2,336 $2,000 $4,879 $5,000 $2,681 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $2,500 Original Budget Expended Proposed Budget This budget category represents the estimated costs for travel related expenses for the recycled water division. Travel Related Expenses $ 2,500 Total $ 2,500 Chapter Four Page 4-22

206 Recycled Water Division Recycled Water Division Administrative Services Department Certifications & Renewals Fiscal Budget Year $250 $250 $250 $250 $800 $1,000 $500 $1,200 $1,000 $800 $600 $400 $200 Original Budget Expended Proposed Budget This budget category will be used for recycled water division employee certifications. Backflow Certifications $ 500 Total $ 500 Chapter Four Page 4-23

207 Recycled Water Division Recycled Water Division Administrative Services Department Licenses & Permits Fiscal Budget Year $1,984 $2,500 $1,323 $2,500 $2,500 $189 $2,500 $2,496 $2,500 $31,564 $35,000 $21,472 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $20,000 Original Budget Expended Proposed Budget This budget category includes the required annual operating permits for various state and local governmental agencies. In most cases, the amounts of the fees are established by regulation. Recycled Division Licenses & Permits $ 20,000 Total $ 20,000 Chapter Four Page 4-24

208 Recycled Water Division Recycled Water Division Administrative Services Department Meeting Related Expenses Fiscal Budget Year $540 $500 $422 $500 $526 $500 $64 $500 $378 $250 $594 $1,000 $872 $1,200 $1,000 $800 $600 $400 $200 $1,000 Original Budget Expended Proposed Budget The District hosts numerous meetings throughout the year which include public tours, tours for school children, and several regional meetings for recycled industry professionals. This budget category will be used for expenses related to meetings hosted or attended by the District for recycled water functions. Recycled Division Meeting Related Expenses $ 1,000 Total $ 1,000 Chapter Four Page 4-25

209 Recycled Water Division Recycled Water Division Administrative Services Department Utilities YVWD Services Fiscal Budget Year $22,345 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $25,000 Original Budget Expended Proposed Budget This budget category is used for all YVWD recycled water services. YVWD Recycled Water Services $ 25,000 Total $ 25,000 Chapter Four Page 4-26

210 Recycled Water Division Recycled Water Division Administrative Services Department Telephone & Internet Fiscal Year Budget $600 $661 $500 $651 $500 $781 $750 $637 $750 $245 $750 $1,678 $1,000 $1,539 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $1,500 Original Budget Expended Proposed Budget This budget category will be used for telephone related expenses. Telephone & Internet $ 1,500 Total $ 1,500 Chapter Four Page 4-27

211 Recycled Water Division Recycled Water Division Administrative Services Department Contractual Services Fiscal Budget Year $2,400 $1,630 $1,750 $3,470 $1,750 $1,605 $1,750 $1,605 $1,500 $1,605 $1,500 $3,690 $3,500 $8,485 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $8,400 Original Budget Expended Proposed Budget This budget category includes the general contractual services allocated to the recycled water division. Contractual Services $ 8,400 Total $ 8,400 Chapter Four Page 4-28

212 Recycled Water Division Recycled Water Division Administrative Services Department Legal Fiscal Budget Year $78,688 $2,000 $2,000 $1,000 $1,000 $1,000 $3,825 $4,000 $1,275 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $1,250 Original Budget Expended Proposed Budget This budget category is used for all recycled water related legal costs. Legal Expenses $ 1,250 Total $1,250 Chapter Four Page 4-29

213 Recycled Water Division Recycled Water Division Administrative Services Department Audit & Accounting Fiscal Budget Year $2,330 $2,500 $2,390 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $2,500 Original Budget Expended Proposed Budget This budget category will be used for audit services incurred during this fiscal year. Audit and Accounting Services $ 2,500 Total $ 2,500 Chapter Four Page 4-30

214 Recycled Water Division Recycled Water Division Administrative Services Department Professional Services Fiscal Budget Year $10,000 $10,000 $16,604 $10,000 $69,957 $10,000 $66,252 $25,000 $129,635 $25,000 $190,089 $25,000 $154,659 $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $25,000 Original Budget Expended Proposed Budget This budget category represents the costs associated with miscellaneous professional fees related to engineering type services for this division. Professional Fees $ 25,000 Total $ 25,000 Chapter Four Page 4-31

215 Recycled Water Division Recycled Water Division Administrative Services Department Laboratory Services Fiscal Budget Year $30 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,200 $1,000 $800 $600 $400 $200 Original Budget Expended Proposed Budget This budget category is used for all recycled water related laboratory services. Laboratory Services $ 0 Total $ 0 Chapter Four Page 4-32

216 Recycled Water Division Recycled Water Division Administrative Services Department Reserve Funds Fiscal Year Budget $114,300 $114,300 $7,900 $7,900 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $8,000 Original Budget Expended Proposed Budget Prudent financial planning and fiscal responsibility includes anticipating and preparing for future funding requirements as well as unforeseen and unexpected emergencies, disasters, and other events. The District has established this annual reserve for its long-term organizational and operational stability and to enable the District to minimize significant rate fluctuations due to unforeseen and expected cash flow requirements during the year. This reserve fund is to ensure that the District accumulates, manages, maintains, and uses certain financial resources only for specific purposes. At the conclusion of this fiscal year, these funds will be strictly designated to fund the replacement of recycled water related infrastructure (depreciation reserves). Reserve Funds $ 8,000 Total $ 8,000 Chapter Four Page 4-33

217 Recycled Water Division Recycled Water Division Administrative Services Department xxxxx Recycled Water Infrastructure Replacement Fiscal Year Budget $52,920 $52,920 $50,000 $50,000 $100,000 $100,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $25,000 Original Budget Expended Proposed Budget This budget category represents funding necessary to replace depreciated assets of the recycled water division such as reservoirs, boosters, pipelines, services, fire hydrants, meters, structures, buildings, trucks, shop equipment, computers, radios, construction equipment, and tools relative to the recycled water operations. At the conclusion of this fiscal year, these funds will be strictly designated to fund the replacement of water related infrastructure (depreciation reserves). Depreciation $ 25,000 Total $ 25,000 Chapter Four Page 4-34

218 Recycled Water Division Recycled Water Division Administrative Services Department Insurance Fiscal Budget Year $20,957 $25,000 $20,000 $15,000 $10,000 $5,000 $20,000 Original Budget Expended Proposed Budget This budget category represents the annual projected costs associated with insurance coverage related to general, auto, and property insurance. General Liability, Errors and Omission & Automotive $ 20,000 Total $ 20,000 Chapter Four Page 4-35

219 Recycled Water Division Recycled Water Division Administrative Services Department Regulatory Compliance Fiscal Budget Year $15,000 $15,000 $62,003 $25,000 $48,671 $25,000 $20,696 $40,000 $78,768 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $25,000 Original Budget Expended Proposed Budget This budget category will be used for regulatory compliance issues within the recycled water division. Regulatory Compliance including DPH and Regional Board $ 25,000 Total $ 25,000 Chapter Four Page 4-36

220 Recycled Water Division Recycled Water Division Administrative Services Department Environmental Compliance Fiscal Budget Year $10,000 $10,000 $10,000 $10,000 $10,000 $9,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 Original Budget Expended Proposed Budget This budget category will be used for environmental compliance issues within the recycled water division. Environmental Compliance $ 9,000 Total $ 9,000 Chapter Four Page 4-37

221 Chapter Five Fiscal Year Capital Improvement Budget Chapter Five Page 5-1

222 Fiscal Year Capital Improvement Budget for Yucaipa Valley Water District Capital Improvement Program A systematic, organized approach to planning capital facilities provides a number of benefits: Using taxpayers dollars wisely. Advance planning and scheduling of infrastructure may avoid costly mistakes. The effort put into deliberate assessment of the need for repair, replacement or expansion of existing infrastructure, as well as careful evaluation of the need and timing of new facilities can provide savings. Project timing may be improved to better use available personnel, expensive equipment and construction labor by scheduling related major activities over a longer period. Coordination of construction of several projects may affect savings in construction costs (a newly paved street may not have to be torn up to replace utility lines). Overbuilding or underbuilding usually can be avoided. Needed land can be purchased at lower cost well in advance of construction. Focusing on community needs and capabilities. District projects should reflect the community's needs, objectives, expected growth and financial capability. With limitations for funding capital facilities, planning ahead will help assure that high priority projects will be built first. Obtaining community support. Citizens tend to be more receptive toward projects which are part of a community-wide analysis. A high priority project which is part of an overall plan is less suspect as being someone's "pet project". Where the public participates in the planning of community facilities the citizens are better informed about the community needs and the priorities. A capital improvement program reduces the pressure on elected officials to fund projects which may be of low priority. Encouraging economic development. Typically, a firm considering expansion or relocation is attracted to a community which has well planned and well managed facilities in place. Also, a capital improvement program allows private investors to understand a community's tax loads and service costs, and reflects the fact that the community has completed advance planning to minimize the costs of capital facilities. More efficient administration. Coordination of capital improvements construction among city, county and special districts can reduce scheduling problems, conflicts and overlapping of projects. Also, work can be scheduled more effectively when it is known in advance what, where and when projects are to be undertaken. A capital improvements program allows a community to anticipate lead times necessary to conduct bond elections and bond sales, prepare design work and let contract bids. Maintaining a stable financial program. Abrupt changes in the tax structure and bonded indebtedness may be avoided when construction projects are spaced over a number of years. Major expenditures can be anticipated, resulting in the maintenance of a sound financial standing through a more balance program of bonded indebtedness. Where there is ample time for planning, the most economical methods of financing each project can be selected in advance. Keeping planned projects within the financial capacity of the community helps to preserve its credit and bond rating and makes the area more attractive to business and industry. Federal and state grant and loan programs. A capital improvements program places the community in a better position to take advantage of federal and state grant programs, because plans can be made far enough in advance to utilize matching funds, both anticipated and Chapter Five Page 5-2

223 Fiscal Year Capital Improvement Budget for Yucaipa Valley Water District unanticipated. Most federal and state grant/loan programs either require prior facilities planning, or favor, in ranking applications, applicants which have conducted such planning. The Yucaipa Valley Water District Capital Improvement Program is a planning tool used to identify projects and their corresponding costs. This program is necessary to provide for the orderly replacement and expansion of existing facilities; the construction of new facilities; and the development of project revenue and financing sources. The Yucaipa Valley Water District Capital Improvements Program is a blueprint for planning the capital expenditures by coordinating planning, financial capacity and physical infrastructure construction. The Capital Improvement Program is composed of two parts -- a capital budget and a capital program. The capital budget is the upcoming year's spending plan for capital items. The capital program is a plan for capital expenditures that extends five years beyond the capital budget. Capital Improvement Program Summary The Yucaipa Valley Water District Capital Improvement Program identifies those proposed projects to be undertaken by the District to improve services, upgrade facilities and replace physical plants. This report contains a summary of those projects. It should be noted that the cost estimates should only be used as a general guide. costs may vary greatly based on such factors as when the project is built, specific design considerations, environmental mitigation, and actual construction bids. Substantial financial resources will be needed to carry out the Capital Improvement Program. Revenue and expenditures over the next five-year period need to be reviewed in order to determine the District s ability to implement the Capital Improvement Program. Criteria for Prioritizing Capital Improvement Projects Capital Improvement Projects will be evaluated and prioritized by being placed into one of three categories. The three categories are as follows: Critical Reduce Dependency on Imported Water Well Construction Maximize Local Water Recycled Water Development Regulatory Requirements Contractual Obligations Important Community Needs Minimization of Operational Costs System Reliability Necessary Future Growth Chapter Five Page 5-3

224 Fiscal Year Capital Improvement Budget for Yucaipa Valley Water District Capital Improvement Categories The District currently maintains several separate categories to better define capital improvement projects. These categories are used primarily to identify internal funding sources, but such categories can also be useful for assessing the importance of a particular project. The District uses the following categories: Contractual Obligations Land Acquisition Recycled Water System Improvements Regulatory Requirements Sewer System Improvements Sewer Treatment Facility Construction/Improvements Water Source of Supply Water System Improvements Water Treatment Facility Construction/Improvements Water Well Construction Other Purpose of Capital Improvement Program By establishing the Capital Improvement Program, it becomes clear that the District must maximize revenue sources to support the construction of required facilities. The District s ability to obtain long-term financing for the Capital Improvement Program is largely dependent on the financial strength and revenue stream of the District. To keep this high investment grade rating for future projects, the District must maintain adequate fee structures and reserve funds. Finally, it is imperative that the operating costs of the water, sewer and recycled water divisions remain fully self-supported by user fees in order to maximize other revenue sources for support of the Capital Improvement Program. In the Fiscal Year Operating Budget, the water, sewer and recycled water divisions receive property taxes that are used to fund depreciation/reserves. This is consistent with a fiduciary approach that invests heavily in the replacement of aged infrastructure instead of subsidizing water and sewer rates. This approach will continue to make the water, sewer and recycled water operating funds self sufficient while investing in improving the efficiency of the District while providing for the orderly replacement and expansion of existing facilities. This fiduciary philosophy of investing in the replacement of old infrastructure greatly enhances the overall value of the District while improving the quality of life for our customers. Chapter Five Page 5-4

225 Fiscal Year Capital Improvement Budget for Yucaipa Valley Water District YUCAIPA VALLEY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM Division: Water Project Priority: Important Category: Water Source of Supply Construction Year: FY Project Title: Salinity Concentrate Reduction and Management Project at the Yucaipa Valley Regional Water Filtration Facility COST BY TYPE FUNDING SOURCE Preliminiary Engineering/Design $ 175,000 Reserves/Depreciation $ 1,800,000 Environmental $ 0 Development Impact Fees $ 1,500,000 Right-of-Way/Land Acquisition $ 0 Federal Participation Labor, Equipment, Administration $ 50,000 State Participation Contract Construction $ 4,500,000 Bond Financing Construction Engineering $ 525,000 Local Matching Other: Environmental/Permitting/Misc $ 50,000 Other Funds $ 2,000,000 Total $ 5,300,000 Total $ 5,300,000 The Yucaipa Valley Water District operates the Yucaipa Valley Regional Water Filtration Facility (YVRWFF) for production of drinking water. The drinking water filtration facility is designed for an ultimate capacity of 36 million gallons per day (mgd) using the latest membrane barrier technology for the removal of macro, micro and molecular constituents that are commonly found in surface water streams and lakes. Chapter Five Page 5-5

226 Fiscal Year Capital Improvement Budget for Yucaipa Valley Water District Today the filtration system consists of 13.6 mgd of microfiltration (MF) and 6.0 mgd of nanofiltration (NF) processes. The 6.0 mgd NF system capacity allows the District to provide up to 8.0 mgd of drinking water at a blend ratio of 75:25 NF:MF, which is needed to minimize formation of regulated disinfection by products. To increase the production capacity of the facility, additional MF and NF processes should be installed. The District staff has recognized a distinct benefit of increasing the nanofiltration capacity by 3 mgd with a concentrate recycle process to improve the productivity and efficiency of the system while reducing the volume of the backwash water produced at the facility. This system enhancement will increase the overall drinking water capacity of the facility from 8 mgd to 12 mgd while eliminating about 1.0 mgd of flow to the recycled water system. The benefit of this project would be to: (1) increase the efficiency of drinking water produced from the filtration facility from 85% to 95%; (2) decrease the amount of recycled water produced from the drinking water facility; (3) enhance the protection of the drinking water supply from increased salinity excursions and an upward overall salinity trend from source water originating from the State Water Project (a recent salinity peak in early is shown below); and (4) maintain compliance with the Regional Water Quality Control Board Basin Plan objectives for the Yucaipa and Beaumont Management Zones. Justification: The construction of this reservoir is necessary to augment the District's water supply which will provide a direct benefit to the amount of water managed in local groundwater basins. Chapter Five Page 5-6

227 Fiscal Year Capital Improvement Budget for Yucaipa Valley Water District YUCAIPA VALLEY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM Division: Recycled Water Project Priority: Important Category: System Improvements Construction Year: FY Project Title: Calimesa Recycled Water Conveyance Pipeline Project COST BY TYPE FUNDING SOURCE Preliminiary Engineering/Design $ 150,000 Reserves/Depreciation $ 2,375,000 Environmental $ 0 Development Impact Fees Right-of-Way/Land Acquisition $ 0 Federal Participation Labor, Equipment, Administration $ 50,000 State Participation Contract Construction $ 4,000,000 Bond Financing Construction Engineering $ 425,000 Local Matching Other: Environmental/Permitting/Misc $ 50,000 Other Funds $ 2,300,000 Total $ 4,675,000 Total $ 4,675,000 The Calimesa Recycled Water Conveyance Pipeline Project that will consist of approximately 18,500 linear feet of 24 recycled water pipeline that will provide recycled water to the southern Calimesa service area and provide for an interconnection with Beaumont Cherry Valley Water District. This pipeline will enable the District to reduce the amount of drinking water delivered to proposed projects in the City of Calimesa as well as provide an opportunity to exchange recycled water with the Beaumont Cherry Valley Water District. The collaborative operation of this recycled water system interconnection will reduce the long-term drought impacts of both communities and increase the protection of local groundwater resources. Chapter Five Page 5-7

228 Fiscal Year Capital Improvement Budget for Yucaipa Valley Water District YUCAIPA VALLEY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM Division: Water Project Priority: Critical Category: Water Well Construction Construction Year: FY 2019 Project Title: Redrilling of Well No. 35 COST BY TYPE FUNDING SOURCE Preliminiary Engineering/Design $ 250,000 Reserves/Depreciation $ 500,000 Environmental Development Impact Fees $ 1,000,000 Right-of-Way/Land Acquisition Federal Participation Labor, Equipment, Administration $ 50,000 State Participation Contract Construction $ 2,200,000 Bond Financing Construction Engineering Local Matching $ 1,000,000 Other: Environmental/Permitting/Misc Other Funds Total $ 2,500,000 Total $ 2,500,000 The Yucaipa Valley Water District used to produce about 1,000 acre feet per year from Well No. 35 which is located in the Beaumont Basin. Due to nitrate contamination, the facility was closed. While researching additional groundwater sites in the Calimesa area, the District should review the possibility of reactivating this well site with a nitrate treatment process. This is important project to further develop a local, reliable, high quality, water supply. Chapter Five Page 5-8