TO: BOARD OF DIRECTORS DATE POSTED: APRIL 11 ......A. Approval of Minutes for March 19, 2014 Regular Board Meeting Page 3 B. Approval of Minutes for April 2, 2014 Special Board Meeting

RUNNING SPRINGS WATER DISTRICT A MULTI-SERVICE INDEPENDENT SPECIAL DISTRICT

31242 Hilltop Boulevard • P.O. Box 2206 Running Springs, CA 92382

WATER (909) 867-2766 • WASTEWATER COLLECTION (909) 867-7352 • WASTEWATER TREATMENT (909) 867-3689 • FIRE (909) 867-2630

TO: BOARD OF DIRECTORS DATE POSTED: APRIL 11, 2014

RE: REGULAR BOARD MEETING FROM: BOARD SECRETARY

A Regular Meeting of the Board of Directors of the Running Springs Water District will be held on Wednesday, April 16, 2014, at the hour of 9:00 am at the District Office located at 31242 Hilltop Boulevard, Running Springs, California. This agenda was posted prior to 5:00 pm on April 11, 2014 at the Running Springs Water District Office and Website.

Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities, as required by Section 202 of the Americans with Disabilities Act of 1990. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to Joan Eaton, Board Secretary at (909) 867-2766 at least 48 hours before the meeting, if possible.

Copies of documents provided to members of the Board for discussion in open session may be obtained from the District at the address indicated above.

AGENDA

1. Call Meeting to Order and Pledge of Allegiance

2. Recognize and Hear From Visitors/Public Comment

3. Approval of Consent Items – The following consent items are expected to be routineand non-controversial and will be acted on at one time without discussion unless anitem is withdrawn by a Board Member for questions or discussion. Any personwishing to speak on the consent agenda may do so by raising his/her hand and beingrecognized by the Board President.

A. Approval of Minutes for March 19, 2014 Regular Board Meeting Page 3 B. Approval of Minutes for April 2, 2014 Special Board Meeting Page 10 C. Ratify March 2014 Expenditures Page 14 D. Receive and File the Fiscal Year 2012/2013 Annual Board and Employee

Expense Report Page 20

4. Action Items – The following action items will be considered individually and eachrequire a motion by the Board of Directors for action.

A. Board Authorization to Hold a Public Hearing on June 18, 2014 to Consider Proposed Water and Wastewater Rate and Fee Adjustments for Fiscal Years Ending 2015-2019 and to Mail a Notice of the Public Hearing to all District Property Owners in Accordance with the Requirements of Proposition 218 (Presenter: Ryan Gross, General Manager) Page 25

1

April 16, 2014 Regular Board Meeting Agenda Posted April 11, 2014

B. Consider Voting for Regular Special District Member and the Alternate Special

District Member of the Local Agency Formation Commission Page 29 (Presenter: Ryan Gross, General Manager) ROLL-CALL VOTE

C. Consider Adopting Resolution No. 11-14 Dedicating a Source of Revenues for the Repayment of a State Water Resources Control Board Clean Water State Revolving Fund Loan Page 37 (Presenter: Ryan Gross, General Manager)

D. Consider Appeal of Sewer Connection Fee 31317 Onacrest Drive Page 41 (Presenter: Ryan Gross, General Manager)

E. Consider Accepting Proposal for Financial Auditing Services for the District’s Fiscal Year Ending June 30, 2014 Page 44 (Presenter: Ryan Gross, General Manager)

F. Consider Authorizing Staff to Conduct Income Survey to Determine Median Household Income for USDA Grant Funding Page 52 (Presenter: Ryan Gross, General Manager)

5. Information Items – The following information items do not require any action by the Board of Directors and are for informational purposes only.

A. Review of Draft Ordinance No. 42, Declaring a Water Shortage Emergency and

Adopting a Water Conservation Program Superseding and Replacing Ordinance Nos. 34 and 17 Page 66 (Presenter: Ryan Gross, General Manager)

6. General Manager Report

7. Report from Engineer 8. Report from Legal Counsel 9. Board Member Meetings

10. Board Member Comments 11. Meeting Adjournment Upcoming Meetings: Regular Board Meeting, May 21, 2014 at 9:00 am

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3. A.

RUNNING SPRINGS WATER DISTRICT

M E M O R A N D U M DATE: April 16, 2014 TO: Board of Directors FROM: Ryan Gross, General Manager SUBJECT: CONSIDER APPROVING MEETING MINUTES FOR THE

MARCH 19, 2014 REGULAR BOARD MEETING RECOMMENDATION It is recommended that the Board of Directors review and approve the attached meeting minutes. REASON FOR RECOMMENDATION Approval of meeting minutes. BACKGROUND INFORMATION The attached draft meeting minutes are from the Regular Board Meeting that was held on March 19, 2014. FISCAL INFORMATION N/A ATTACHMENTS Attachment 1 – Draft Meeting Minutes

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MINUTES – MARCH 19, 2014 NOT APPROVED PAGE 1 OF 6

MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS RUNNING SPRINGS WATER DISTRICT

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA MARCH 19, 2014

The Regular Meeting of the Board of Directors of the Running Springs Water District was held on Wednesday, March 19, 2014 at the hour of 9:00 A.M. at the District office located at 31242 Hilltop Boulevard, Running Springs, California. The following Directors were present: Kenneth Ayers, President Mike Terry, Vice-President Everett “Ed” Brittain, Director Pamella Bennett, Director The following Directors were absent: Henry Heredia, Director Also present were the following: Ryan Gross, General Manager Tony Grabow, Fire Chief Randy Bobroff, Water Division Supervisor Trevor Miller, Wastewater Treatment Division Supervisor Isaiah Hall, Wastewater Collections Division Supervisor Ward Simmons, Attorney, Best, Best & Krieger Brian Thomas, Engineer, Engineering Resources Visitors Present: Gerhard Hilgenfeldt, Running Springs Resident Joe Harich, Running Springs Resident Mike Milliorn, Rim of the World Recreation and Park District Joan Moseley, Running Springs Resident, Reporter Roger Hulett, Green Valley Lake Resident MEETING MINUTES AGENDA ITEMS 1. Call Meeting to Order and Pledge of Allegiance

The meeting was called to order at 9:00 A.M. by President Ayers and the assembly pledged allegiance to the flag.

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2. Recognize and Hear From Visitors/Public Comment The visitors listed above introduced themselves for the record. A. Presentation by Mr. Joe Harich on Downtown Groundwater Wells

Mr. Harich made a presentation on his groundwater wells located in the downtown Running Springs area and suggested that the Running Springs Water District revisit the feasibility of acquiring these wells. Discussion continued and additional background information was provided by Manager Gross. If the Board decided to revisit these wells it was suggested that a feasibility study be conducted including examining the environmental concerns, pump testing, water quality analysis and an economic analysis. Staff will obtain a proposal to conduct this analysis from a hydro geologist and return to the Board. The estimated cost to conduct the appropriate environmental analysis would be $18,000 to $50,000. The Board requested that Mr. Harich determine what a fair value of the water rights and infrastructure would be and provide that to the General Manager.

3. Approval of Consent Items

The following consent items were listed for approval: A. Approval of Minutes for February 19, 2014 Regular Board Meeting

B. Ratify January 2014 Expenditures

C. Consider Adopting Resolution No. 04-14, Fixing and Levying Fire Suppression

Availability Charges for Fiscal Year 2014-2015

D. Consider Adopting Resolution No. 05-14, Fixing Sewer Standby or Availability Charges for Fiscal Year 2014-2015

E. Consider Adopting Resolution No. 06-14, Fixing Water Standby or Availability Charges for Fiscal Year 2014-2015

F. Consider Adopting Resolution No. 07-14, Clean Water State Revolving Fund Reimbursement Resolution

G. Consider Adopting Resolution No. 08-14, Appointing the General Manager to also Serve as Assistant Secretary

Upon motion by Director Terry, second by Director Brittain and carried by a 4 to 0 vote, the items on the consent calendar were approved.

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4. Action Items A. Consider Authorizing Staff to Purchase 2015 Ford F-550 to Replace 1997 Squad 51

Light Rescue Vehicle Chief Grabow reported on the budgeted replacement of Squad 51, the three bids received and the plan for modifying and refurbishing the existing body to place on the new chassis. The purchase will be funded from the Fire Department Equipment Replacement Reserve Fund. Upon motion by Director Brittain, second by Director Terry and carried by a 4 to 0 vote, staff was authorized to purchase a 2015 Ford F-550 from Fairview Ford in the amount of $47,850.18.

B. Consider Adoption of Resolution Nos. 09-14 and 10-14 for the Elimination of Employer Paid Member Contributions (EPMC) to the California Public Employees’ Retirement System (CalPERS) for Newly Hired Classic CalPERS Members Manager Gross informed the Board that the Personnel Committee had considered a change in policy regarding the District’s payment of normal member contribution to CalPERS as EPMC for newly hired “Classic” CalPERS Members. The Committee discussed the possibility of a second tier for newly hired employees that are considered “Classic” CalPERS members (both Miscellaneous and Safety) in which the District would pay 0% of the normal member contribution as EPMC for all new hires that would fall into the category of “Classic” CalPERS members. The average Employer Paid Member Contribution (EPMC) for each newly hired “Classic” CalPERS employee is approximately $7,000 per year with a range of $3,000 to $14,000 per year. Upon motion by Director Bennett, second by President Ayers and carried by a 4 to 0 vote, RESOLUTION NOS. 09-14 AND 10-14 ELIMINATING EPMC FOR MISCELLANEOUS AND SAFETY NEW HIRES CLASSIC CALPERS MEMBERS, WERE ADOPTED. (Resolution Nos. 09-14 and 10-14 are on file in the District office).

5. Information Items

A. Draft Fiscal Year 2014/2015 Wastewater Department Budget

The draft Wastewater Department Budget was provided for review and discussion. A Special Board Meeting is scheduled for April 2, 2014 for the Board to discuss rates and address questions regarding the Water, Wastewater and Fire Division Budgets. Director Brittain commended staff for doing a good job regarding the draft budgets.

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B. Review of Draft Ordinance No. 42, Declaring a Water Shortage Emergency and Imposing Measures to Deal with the Emergency On April 3, 1991 the District Board of Directors adopted Ordinance No. 17, Declaring a Water Shortage Emergency and Establishing a Water Conservation Program with provision for the declaration of various stages of water shortage. On November 17, 2010 the District Board of Directors adopted Ordinance No. 34, Amending Ordinance No. 17 to provide that when the Board has declared a Phase II Shortage, or greater, water service provided through water meters for irrigation purposes shall be terminated until such time as the Phase II Shortage, or greater, has ended. Best, Best & Krieger has reviewed the policies and provided a red line version for the Board to review. The Board raised several questions and concerns with the proposed draft ordinance. The consensus was to revise the ordinance to simplify it and make it a better fit for the Running Springs community. Staff will return to the Board in April with a revised version for further review and discussion.

6. Reports from Management

Division Supervisors reported on various activities. Manager Gross confirmed that a Special Board Meeting will be scheduled for Wednesday, April 2, 2014 at 9am to discuss rates and the draft budgets. Manager Gross also reported on the second attempt at the sale of the delinquent Assessment District No. 10 properties on February 26th and that no one showed up to bid. If anyone expresses interest the District will require a good faith deposit to cover additional costs of approximately $2,500 to proceed with a third attempt at a sale. The minimum bid is currently around $65,000 plus there are back taxes (2008-2014) due of approximately $60,000. Manager Gross reported on the District’s contract accountant that has retired from RAMS. We offered for her to continue on as a consultant but she will only be available until November 1st and we have not heard back from RAMS if they are interested in continuing as our consultant. Last month a financial consultant called Platinum Consulting Group did a brief assessment of our financial and accounting practices and provided a proposal for assisting the District in this area. The consultant provided three options. Option 1 would be a contract Finance Manager at $100K-$150K for the first year assuming a new accounting/billing system is implemented and then approximately $40K to $75K per year after the first year which is equivalent to what the District is currently paying RAMS. Option 2 involves assistance with finding someone who could adequately and competently help the District with financial management which would cost approximately $5,000. The Finance Committee will be looking at the assessment and proposal this afternoon and returning to the Board with a recommendation at the Special Board meeting in April.

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7. Finance Committee Report Director Brittain reported that the Administration and Water Division Budgets were going to be reviewed in the afternoon following this meeting and commended staff for the efforts in generating the draft budgets.

8. Report from Engineer

Engineer Thomas reported on the delta smelt protected species issue. Engineering Resources is still investigating the feasibility of water reuse and gray water in the Running Springs Water District service area.

9. Report from Legal Counsel Attorney Simmons provided the Board of Directors with the latest California State Major Water Reservoirs chart that outlines water conditions indicating that the situation continues to get worse. Approximately 85% of carry over water and 75% of exchange water may be made available to CLAWA.

10. Board Member Meetings

A Special Board Meeting will be scheduled April 2, 2014 at 9am to discuss rates and the draft budgets.

11. Board Member Comments Additional discussion ensued regarding the drought. Director Brittain expressed thanks to the staff for their work and mentioned that a customer was appreciative for the exceptional customer service he received when he contacted the District. Roger Hulett addressed the Board representing Green Valley Lake. Mr. Hulett’s comments were related to the potential independent sewer district the Green Valley Lake community is investigating. Mr. Hulett commented on the status of the CCTV inspection and various projects on-going in the CSA-79 service area and asked the Board what their feeling is in re-visiting consolidation. The Board commented on the past consolidation efforts and that it appeared the County was increasing their efforts to make improvements in CSA-79. Mr. Hulett indicated that the recent video inspection of the CSA-79 sewer system could be made available for review by Running Springs Water District staff. Joan Moseley addressed the Board and commented on an upcoming community breakfast meeting Supervisor Rutherford is having in Crestline. Manager Gross reported on a recent meeting with Supervisor Rutherford.

12. Meeting Adjournment

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The meeting was adjourned at 11:18 A.M. Respectfully Submitted, _____________________________________ ____________________________________ President, Board of Directors Secretary of the Board of Directors Running Springs Water District Running Springs Water District

9

3. B.


M E M O R A N D U M DATE: April 16, 2014 TO: Board of Directors FROM: Ryan Gross, General Manager SUBJECT: CONSIDER APPROVING MEETING MINUTES FOR THE

APRIL 2, 2014 SPECIAL BOARD MEETING RECOMMENDATION It is recommended that the Board of Directors review and approve the attached meeting minutes. REASON FOR RECOMMENDATION Approval of meeting minutes. BACKGROUND INFORMATION The attached draft meeting minutes are from the Special Board Meeting that was held on April 2, 2014. FISCAL INFORMATION N/A ATTACHMENTS Attachment 1 – Draft Meeting Minutes

10

MINUTES – APRIL 2, 2014 NOT APPROVED PAGE 1 OF 3

MINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS RUNNING SPRINGS WATER DISTRICT

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA APRIL 2, 2014

The Special Meeting of the Board of Directors of the Running Springs Water District was held on Wednesday, April 2, 2014 at the hour of 9:00 A.M. at the District office located at 31242 Hilltop Boulevard, Running Springs, California. The following Directors were present: Kenneth Ayers, President Mike Terry, Vice-President Everett “Ed” Brittain, Director Pamella Bennett, Director Henry Heredia, Director Also present were the following: Ryan Gross, General Manager Tony Grabow, Fire Chief Randy Bobroff, Water Division Supervisor Trevor Miller, Wastewater Treatment Division Supervisor Isaiah Hall, Wastewater Collections Division Supervisor Mike Riddell, Attorney, Best, Best & Krieger Visitors Present: None MEETING MINUTES AGENDA ITEMS 1. Call Meeting to Order and Pledge of Allegiance

The meeting was called to order at 9:03 A.M. by President Ayers and the assembly pledged allegiance to the flag.

2. Recognize and Hear From Visitors/Public Comment

No visitors were present.

3. Action Items

A. Provide Direction to Staff Regarding Water and Wastewater Rate Structure for

Fiscal Year 2014/2015 through Fiscal Year 2018/2019.

11


Manager Gross presented information on the District’s draft fiscal year 2014/2015 budgets and proposed five year budget and rate plan. A copy of the PowerPoint presentation is on file with the District. The presentation included review of the many challenges the District faces including the low cash reserve levels, succession planning, increasing pension, electricity and gas costs, repair and replacement of aging infrastructure. The fiscal year 2014/2015 budget schedule, Cash Reserve Policy, operating reserve fund balances, fiscal year 2014/2015 expense summary, proposed five year budget and rate plans, proposed rate adjustment impacts and a comparison of rates with neighboring mountain communities were also thoroughly reviewed and discussed. A detailed review of the District’s five year Capital Improvement Program projects was reviewed and discussed. After a very thorough review and discussion of all the related facts and figures the Board directed staff to proceed with preparing the necessary Proposition 218 notice to the District’s customers to include water and wastewater rate adjustments for fiscal years ending (FYE) 2015 through 2019 that the Board of Directors will be considering at a public hearing on June 18, 2014. The proposed water rate adjustments for FYE 2015 will include a $2.35 increase to the monthly water base charge, an increase of $0.35 per hundred cubic feet of water usage and a $1.88 per month fee for funding necessary capital improvement projects to repair and replace aging water system infrastructure. The proposed water rate adjustments for FYE 2016-2019 will include a 5% per year increase to the monthly water base charge and the monthly water usage charge. The proposed wastewater rate adjustments for FYE 2015 will include a $3.09 increase to the monthly sewer base charge and a $2.25 per month fee for funding necessary capital improvement projects to repair and replace aging wastewater system infrastructure. The proposed wastewater rate adjustments for FYE 2016-2019 will include a 7% per year increase to the monthly sewer base charge. These revenue increases are necessary to fund capital improvements that were identified in the District’s 2010 Water and Wastewater System Master Plan and are also consistent with the District’s 2010 Financial Master Plan. The increase in revenue will also move the District closer to achieving the goals established in its Cash Reserve Policy.

B. Provide Direction to Staff Regarding Fire Availability Fee. The Board discussed the need for increased revenue to fund the operation of the Running Springs Fire Department. The Board directed staff to proceed with obtaining the necessary information to place a measure on the ballot for the voters to consider in 2015 to increase the Fire Availability Fee to $158 per year with an annual inflationary increase. The existing Fire Availability Fee is a $65 per year special tax that was put into effect on March 11, 1980 by Ordinance No. 9.

12


Staff will also investigate the status of the CalFire fee that is being challenged and report back to the Board. Legal counsel will call the Howard Jarvis Taxpayers Association to inquire about the status of their law suit.

4. Information Items A. Draft Fiscal Year 2014/2015 Water and Administration Department Budget

The draft Water and Administration Department Budget was provided for review and discussion.

5. Meeting Adjournment

The meeting was adjourned at 12:03 P.M. Respectfully Submitted, _____________________________________ ____________________________________ President, Board of Directors Secretary of the Board of Directors Running Springs Water District Running Springs Water District

13

3. C.


M E M O R A N D U M DATE: April 16, 2014 TO: Board of Directors FROM: Ryan Gross, General Manager SUBJECT: RATIFY MARCH 2014 EXPENDITURES RECOMMENDED BOARD ACTION It is recommended that the Board of Directors review the attached accounts payable check register and ratify the District’s March 2014 expenditures. REASON FOR RECOMMENDATION Each month staff presents the monthly check register and recommends that the Board of Directors ratify the District’s expenditures. BACKGROUND INFORMATION Attached is a list of expenditures for March 2014. FISCAL INFORMATION Refer to attached accounts payable check register. ATTACHMENTS Attachment 1 – Accounts Payable Check Register

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15

16

17

18

19

3. D.


M E M O R A N D U M

DATE: April 16, 2014

TO: Board of Directors

FROM: Ryan Gross, General Manager

SUBJECT: CONSIDER RECEIVING AND FILING THE FISCAL YEAR ENDING 2013 ANNUAL BOARD AND EMPLOYEE EXPENSE REPORT

RECOMMENDATION

Receive and file the Fiscal Year 2012/2013 Annual Board and Employee Expense Report.

REASON FOR RECOMMENDATION

Per Government Code Section 53065.5, the District is legally required to annually disclose any reimbursements paid in the preceding fiscal year that are at least one hundred dollars for each individual charge for services or product received.

BACKGROUND INFORMATION

Per Government Code Section 53065.5 each special district, as defined by subdivision (a) of Section 56036, shall, at least annually, disclose any reimbursement paid by the district within the immediately preceding fiscal year of at least one hundred dollars ($100) for each individual charge for services or product received. “Individual charge” includes, but is not limited to, one meal, lodging for one day, transportation or a registration fee paid to any employee or member of the governing body of the district. The disclosure requirement shall be fulfilled by including the reimbursement information in a document published or printed at least annually by a date determined by that district and shall be made available for public inspection.

ATTACHMENTS

Attachment 1 - Fiscal Year Ending 2013 Annual Board and Employee Expense Report

20

Employee

Date

Misc

.Lodging

Parking

Meals

MileageMed

ical

Boots

Uniform

Total

Aberg, Rob

7/9/20

1250

0.00

500.00

Aberg, Rob

7/19

/201

210

0.00

100.00

Aberg, Rob

8/22

/201

217

8.54

178.54

Aberg, Rob

9/27

/201

215

0.00

150.00

Aberg, Rob

12/4/201

214

5.00

145.00

Aberg, Rob

1/10

/201

334

3.48

343.48

Aberg, Rob

1/15

/201

313

5.00

135.00

Aberg, Rob

2/7/20

1335

5.00

355.00

Aberg, Rob

3/21

/201

310

0.00

100.00

Aberg, Rob

4/3/20

1352

0.00

520.00

Aberg, Rob

4/23

/201

314

8.00

148.00

Aberg, Rob

6/5/20

1324

8.00

248.00

Aberg, Rob

6/26

/201

347

55.05

4755

.05

Bobroff, Ra

ndy

11/13/20

1235

0.98

350.98

Corle

y, Geo

rge

7/5/20

1239

9.98

399.98

Corle

y, Geo

rge

7/9/20

1250

0.00

500.00

Corle

y, Geo

rge

7/11

/201

210

0.00

100.00

Corle

y, Geo

rge

7/31

/201

212

4.63

Corle

y, Geo

rge

8/3/20

1239

9.92

399.92

Corle

y, Geo

rge

9/5/20

1245

9.92

459.92

Corle

y, Geo

rge

10/2/201

239

9.95

399.95

Corle

y, Geo

rge

11/6/201

239

2.04

392.04

Corle

y, Geo

rge

1/3/20

1352

2.36

522.36

Corle

y, Geo

rge

1/4/20

1356

0.64

560.64

Corle

y, Geo

rge

2/6/20

1336

1.51

361.51

Corle

y, Geo

rge

3/5/20

1337

8.51

378.51

Corle

y, Geo

rge

4/17

/201

366

9.07

669.07

Davis, M

att

3/28

/201

316

8.00

Eaton, Jo

an7/13

/201

218

9.63

189.63

Eaton, Jo

an10

/19/20

1270

6.50

706.50

Eaton, Jo

an11

/13/20

1222

5.00

225.00

Eaton, Jo

an12

/19/20

1211

8.00

118.00

Eaton, Jo

an2/27

/201

345

9.92

459.92

Eaton, Jo

an3/5/20

1325

9.33

259.33

Eaton, Jo

an3/12

/201

312

9.20

129.20

Ellsb

erry, R

ick

7/9/20

1250

0.00

500.00

Ellsb

erry, R

ick

8/31

/201

234

7.00

347.00

Ellsb

erry, R

ick

9/5/20

1267

1.60

671.60

Ellsb

erry, R

ick

10/19/20

1233

8.84

338.84

Runn

ing Sprin

gs W

ater District

Employee

Expen

ses R

eimbu

rsed

by the District

Expe

nses Incurred

on Be

half of th

e District

Fiscal Year: July 1, 201

2 ‐ Jun

e 30

, 201

3 Registratio

n

Fees

Descrip

tion

Uniform

Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Crest B

ill Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Employee

Developm

ent

124.63

168.00

S&S Class R

eimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Boot Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Uniform

Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Treatm

ent C

ourse Re

imb.

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Fram

ing & Platin

g Re

imb

Med

ical Reimbu

rsem

ent

Uniform

Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

21

RGross

Typewritten Text

ATTACHMENT 1

Employee

Date

Misc

.Lodging

Parking

Meals

MileageMed

ical

Boots

Uniform

Total

Ellsb

erry, R

ick

10/31/20

1258

8.37

588.37

Ellsb

erry, R

ick

12/7/201

258

8.37

588.37

Ellsb

erry, R

ick

1/3/20

1258

8.37

588.37

Ellsb

erry, R

ick

1/14

/201

310

9.78

109.78

Ellsb

erry, R

ick

2/4/20

1352

9.21

529.21

Ellsb

erry, R

ick

4/5/20

1320

5.00

Ellsb

erry, R

ick

4/11

/201

344

4.00

444.00

Ellsb

erry, R

ick

5/13

/201

337

6.05

376.05

Ellsb

erry, R

ick

5/22

/201

339

.22

141.00

180.22

Ellsb

erry, R

ick

6/12

/201

341

4.19

414.19

Ellsb

erry, R

ick

6/21

/201

380

2.50

802.50

Grabo

w, Ton

y7/5/20

1246

1.00

461.00

Grabo

w, Ton

y7/9/20

1250

0.00

500.00

Grabo

w, Ton

y8/22

/201

246

1.00

461.00

Grabo

w, Ton

y9/5/20

1246

1.00

461.00

Grabo

w, Ton

y9/13

/201

230

1.42

301.42

Grabo

w, Ton

y10

/2/201

246

1.00

461.00

Grabo

w, Ton

y11

/8/201

278

4.08

784.08

Grabo

w, Ton

y12

/19/20

1272

8.35

728.35

Grabo

w, Ton

y1/29

/201

310

61.86

1061

.86

Grabo

w, Ton

y3/1/20

1315

0.00

150.00

Grabo

w, Ton

y4/3/20

1357

7.43

577.43

Grabo

w, Ton

y4/9/20

1362

9.90

629.90

Grabo

w, Ton

y5/3/20

1359

7.85

597.85

Grabo

w, Ton

y5/29

/201

340

0.00

293.00

20.00

33.51

1857

.52

2604

.03

Grabo

w, Ton

y6/21

/201

395

3.74

953.74

Gross, R

yan

7/19

/201

212

79.39

1279

.39

Gross, R

yan

8/22

/201

275

0.00

750.00

Gross, R

yan

8/29

/201

235

.00

12.00

85.47

132.47

Gross, R

yan

10/3/201

226

.82

90.00

50.13

144.30

311.25

Gross, R

yan

10/26/20

1214

5.79

145.79

Gross, R

yan

12/10/20

1213

.80

8.25

21.40

144.30

187.75

Hall, Isaiah

8/15

/201

217

2.39

172.39

Jenkins, Ken

t2/15

/201

314

31.22

1431

.22

Jenkins, Ken

t5/29

/201

311

54.23

1154

.23

Loest, Da

ve7/9/20

1250

0.00

500.00

Mayfie

ld, Linda

12/6/201

234

1.00

341.00

Mayfie

ld, Linda

2/4/20

1320

.00

264.36

Mayfie

ld, Linda

2/7/20

1317

6.48

205.00

244.36

176.48

Runn

ing Sprin

gs W

ater District

Employee

Expen

ses R

eimbu

rsed

by the District

Expe

nses Incurred

on Be

half of th

e District

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent


2 ‐ Jun

e 30

, 201

3Em

ployee

Registratio

n

Descrip

tion

Developm

ent

Fees

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Uniform

Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Test Ren

ewal Fee

Reimb

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical & Boo

t Reimb.

Med

ical Reimbu

rsem

ent

Washing

Machine

Reimb

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Seminar /M

edical Reimb

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Boot Reimbu

rsem

ent

ACWA Co

nferen

ceBo

ot Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Laptop

Purchase Re

imb

CSDA

Ann

ual Con

ference

APWA Co

nferen

ceCSDA

Con

ference

Uniform

Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Notary /M

edical Reimb

Notary Test Reimb

22

Employee

Date

Misc

.Lodging

Parking

Meals

MileageMed

ical

Boots

Uniform

Total

Mesna, W

hitney

3/14

/201

382

3.00

823.00

Miller, Trevor

11/13/20

1219

4.39

194.39

Miller, Trevor

2/27

/201

338

0.00

380.00

Miller, Trevor

3/14

/201

337

5.90

375.90

Miller, Trevor

4/29

/201

336

5.07

365.07

Miller, Trevor

5/22

/201

330

0.00

300.00

Nicassio

, Ton

i1/15

/201

318

3.98

183.98

Nikas, N

ick

8/29

/201

216

8.00

Nikas, N

ick

9/28

/201

217

0.00

Nikas, N

ick

2/20

/201

311

3.65

113.65

Papadakis, Jo

hn7/5/20

1253

2.10

532.10

Papadakis, Jo

hn7/9/20

1250

0.00

500.00

Papadakis, Jo

hn7/24

/201

233

3.33

333.33

Papadakis, Jo

hn8/3/20

1253

2.10

532.10

Papadakis, Jo

hn8/24

/201

233

3.00

333.00

Papadakis, Jo

hn8/28

/201

217

0.81

170.81

Papadakis, Jo

hn9/5/20

1253

2.10

532.10

Papadakis, Jo

hn9/21

/201

222

4.67

224.67

Papadakis, Jo

hn10

/2/201

253

2.10

532.10

Papadakis, Jo

hn10

/3/201

233

3.67

333.67

Papadakis, Jo

hn10

/31/20

1240

4.00

404.00

Papadakis, Jo

hn11

/21/20

1247

8.68

478.68

Papadakis, Jo

hn12

/5/201

249

7.82

497.82

Papadakis, Jo

hn12

/12/20

1225

0.00

Papadakis, Jo

hn1/9/20

1396

6.32

966.32

Papadakis, Jo

hn1/29

/201

342

2.00

422.00

Papadakis, Jo

hn2/28

/201

381

3.48

813.48

Papadakis, Jo

hn3/26

/201

310

28.32

1028

.32

Papadakis, Jo

hn4/23

/201

391

8.80

918.80

Papadakis, Jo

hn5/3/20

1320

0.00

Papadakis, Jo

hn5/13

/201

390

8.64

908.64

Papadakis, Jo

hn6/21

/201

391

3.53

913.53

Scotti, M

ike

4/3/20

1399

9.20

999.20

Scotti, M

ike

6/18

/201

316

34.34

1634

.34

Shoo

pman, Tom

2/20

/201

312

7.35

127.35

Strebe

l, Cind

y7/9/20

1250

0.00

500.00

Strebe

l, Cind

y10

/26/20

1225

0.00

Teter, Rich

12/6/201

213

4.99

134.99

Viero, Richard

9/12

/201

240

8.05

408.05

Fees

Runn

ing Sprin

gs W

ater District

Med

ical Reimbu

rsem

ent

Boot Reimbu

rsem

ent

250.00

168.00

170.00

250.00

200.00

Employee

Expen

ses R

eimbu

rsed

by the District

Expe

nses Incurred

on Be

half of th

e District


2 ‐ Jun

e 30

, 201

3Em

ployee

Registratio

n

Descrip

tion

Developm

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

SBV Class R

eimbu

rsem

ent

SWRC

H 12

Reimbu

rsem

ent

Boot Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Uniform

Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Class R

eimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Boot Reimbu

rsem

ent

Uniform

Reimbu

rsem

ent

P.ST. Lic Fees

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Paramed

ic Recert R

eimb

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Boot Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

23

Employee

Date

Misc

.Lodging

Parking

Meals

MileageMed

ical

Boots

Uniform

Total

Viero, Richard

9/14

/201

213

62.35

1362

.35

Viero, Richard

9/14

/201

281

6.15

816.15

Viero, Richard

1/22

/201

310

8.85

108.85

Viero, Richard

6/12

/201

314

0.00

140.00

Willem

se, D

ixi

7/6/20

1298

0.12

980.12

Willem

se, D

ixi

7/9/20

1230

1.00

301.00

Willem

se, D

ixi

8/7/20

1229

5.59

295.59

Willem

se, D

ixi

8/17

/201

242

5.44

425.44

Willem

se, D

ixi

8/24

/201

215

6.60

156.60

Willem

se, D

ixi

9/21

/201

232

6.42

326.42

Willem

se, D

ixi

10/10/20

1228

4.72

284.72

Willem

se, D

ixi

11/21/20

1214

1.89

141.89

Willem

se, D

ixi

1/9/20

1351

3.30

513.30

Willem

se, D

ixi

2/13

/201

312

9.86

129.86

Willem

se, D

ixi

2/27

/201

347

8.00

478.00

Willem

se, D

ixi

3/21

/201

355

7.91

557.91

Willem

se, D

ixi

3/28

/201

336

5.00

365.00

Willem

se, D

ixi

5/29

/201

334

0.67

340.67

Willem

se, D

ixi

6/26

/201

381

6.90

816.90

Winter, Da

ve7/3/20

1214

8.81

148.81

$2,046

.00

$319

.82

$130

.25

$105

.04

$374

.07

$56,20

3.77

$1,492

.41

$3,645

.79

$67,45

8.62


2 ‐ Jun

e 30

, 201

3Em

ployee

Registratio

n

Descrip

tion

Developm

ent

Fees

Runn

ing Sprin

gs W

ater District

Employee

Expen

ses R

eimbu

rsed

by the District

Expe

nses Incurred

on Be

half of th

e District

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Boot Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

$1,956

.47

$1,185

.00

Grand

Total

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Boot Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

Med

ical Reimbu

rsem

ent

24

4. A.


M E M O R A N D U M DATE: April 16, 2014 TO: Board of Directors FROM: Ryan Gross, General Manager SUBJECT: BOARD AUTHORIZATION TO HOLD A PUBLIC HEARING ON

JUNE 18, 2014 TO CONSIDER PROPOSED WATER AND WASTEWATER RATE AND FEE ADJUSTMENTS FOR FISCAL YEARS ENDING 2015-2019 AND TO MAIL A NOTICE OF THE PUBLIC HEARING TO ALL DISTRICT PROPERTY OWNERS IN ACCORDANCE WITH THE REQUIREMENTS OF PROPOSITION 218

RECOMMENDED BOARD ACTION It is recommended that the Board of Directors authorize holding a public hearing on June 18, 2014 to consider the proposed water and wastewater rate and fee increases for Fiscal Years Ending (FYE) 2015-2019 and authorize staff to mail a notice of the public hearing to all District property owners. REASON FOR RECOMMENDATION Consistent with the requirements of Proposition 218, the District is required to hold a public hearing to consider increases in certain water and wastewater rates and fees prior to adopting such increases. The proposed Water and Wastewater Budgets for Fiscal Year 2014/2015 and the rate plan for FYE 2016-2019 include rate and fee increases that must be considered at a public hearing. Rates and fees to be considered at the public hearing include water and wastewater rates and fees that appear on all billings (meter charges, usage charges, and loan fees), whether or not there is an increase in the rate or fee, and any other rate or fee that is going to be increased. BACKGROUND INFORMATION The Water and Wastewater Budgets for Fiscal Year 2014/2015 and the rate plan for FYE 2016-2019 include certain rate and fee increases necessary to generate additional revenue to fund capital improvement projects to repair and replace aging infrastructure, increases in several operating expense categories and minimize the use of designated reserves to fund expenses. Other measures required to balance the budget include reductions in operating expenses where possible and deferral of nonessential activities and projects.

25

4. A.

The following are the specific rates and fees to be addressed at the Proposition 218 public hearing: Water Rates and Fees Monthly Service Charge Usage Charge Residential Landscape Irrigation Monthly Service Charge Fire Service Meter Monthly Service Charge Infrastructure Repair and Replacement Loan Repayment Construction Water Out of District Water Water Turn On/Off Fee Unlock Charge Wastewater Rates and Fees Residential Monthly Base Charge Residential Usage Charge Commercial Monthly Base Charge Commercial Usage Charge Water Pollution Control Plant Loan Repayment Infrastructure Repair and Replacement Loan Repayment Several alternative water and wastewater rate and fee adjustments for Fiscal Year 2014/2015 have been presented and discussed with the Finance Committee and with the full Board of Directors at the April 2, 2014 Special Board Meeting. If the Board intends to consider rate and fee adjustments for the FYE 2015-2019 a Public Hearing will need to be scheduled and it is recommended that the Public Hearing be held on June 18, 2014 at 9:00 am in order to coincide with the District’s annual budget cycle. In order for this to occur, staff will need to prepare and mail out the Notices of the Public Hearing to all District property owners in accordance with the requirements of Proposition 218 no later than Thursday, May 1st, 2014. A draft copy of the Notice of the Public Hearing is attached. If more than 50 % of the District customers protest the rate and fee increases, the Board will not be able to increase the rates and fees. If less than 50% of the District customers protest the increase, the Board can either approve or not-approve the rate and fee increases, at the Boards discretion. Although not subject to Proposition 218, but instead subject to a different statutory hearing requirement, it is recommended that the Board also consider proposed adjustments to Water and Sewer Facility Capacity Charges that same day, upon conclusion of any action taken on water and sewer service rates, fees and charges. Those charges do not need to be included in the mailed notice.

26


31242 Hilltop Boulevard • P.O. Box 2206 Running Springs, CA 92382

WATER (909) 867-2766 • WASTEWATER COLLECTION (909) 867-7352 • WASTEWATER TREATMENT (909) 867-3689 • FIRE (909) 867-2630

April 16, 2014 NOTICE TO PROPERTY OWNERS

PROPOSED RATE ADJUSTMENT BY RUNNING SPRINGS WATER DISTRICT The law in California provides that water and wastewater customers must be notified of proposed rate increases. The Board of Directors of the Running Springs Water District (RSWD or District) will consider adjusting some water and wastewater rates and fees effective July 1, 2014 through June 30, 2019. The increase in wastewater rates is due primarily to the loss of the non-operating revenue that previously was collected, but is no longer collected, from the County of San Bernardino for the disposal of leachate from the Heap’s Peak landfill. The lost revenue was being used to fund deferred repair and replacement of aging infrastructure. Water rates are being adjusted to help fund much needed repair and replacement of aging infrastructure as well as the development of additional local groundwater. The rate and fee increases are identified in the table below.

CURRENT RATES & FEES PROPOSED RATES & FEES FISCAL YEARS ENDING (FYE) 2015-2019 Water Rates & Fees Residential/Commercial Monthly Base Charge: 3/4" Meter - $23.50 1" Meter - $52.93 1-1/2" Meter - $101.93 2" Meter - $160.76 3" Meter - $347.01 Water Consumption Charge: $0.0352 per cubic foot (1 cubic foot = 7.48 gallons) Construction Water: $0.0703 per cubic foot Outside District Water: $0.0412 per cubic foot Landscape Irrigation Meter Monthly Charge: 3/4" Meter - $9.81 1" Meter - $24.51 1-1/2" Meter - $49.02 2" Meter - $78.44 Fire Service Water Meter Monthly Base Charge: 3/4" Meter - $19.60 1" Meter - $32.59 1-1/2" Meter - $45.58 2" Meter - $58.57 3" Meter - $71.54 4" Meter - $84.53 6” Meter - $97.52 8” Meter - $110.51 Wastewater Rates: Residential & Commercial Sewer Monthly Base Charge: $30.85 Residential Sewer Usage Charge: 15% of water usage charge Commercial Sewer Usage Charge: 1/3 of water usage charge

Water Rates & Fees: Residential/Commercial Monthly Base Charge: FYE 2015 FYE 16 FYE 17 FYE 18 FYE 19 3/4" Meter $25.85 $27.14 $28.50 $29.92 $31.42 1" Meter $58.22 $61.13 $64.19 $67.40 $70.77 1-1/2" Meter $112.12 $117.73 $123.62 $129.80 $136.29 2" Meter $176.84 $185.68 $194.96 $204.71 $214.95 3" Meter $381.71 $400.80 $420.84 $441.88 $463.97 Water Consumption Charge per cubic foot: (1 cubic foot (cf) = 7.48 gallons) FYE 2015 FYE 2016 FYE 2017 FYE 2018 FYE 2019 $0.0387 $0.0406 $0.0426 $0.0447 $0.0469 Construction Water: $0.0773 per cubic foot Outside District Water: $0.0453 per cubic foot Landscape Irrigation Meter Monthly Base Charge: FYE 2015 FYE 16 FYE 17 FYE 18 FYE 19 3/4" Meter $10.79 $11.33 $11.90 $12.50 $13.13 1" Meter $26.96 $28.31 $29.73 $31.22 $32.78 1-1/2" Meter $53.92 $56.62 $59.45 $62.42 $65.54 2" Meter $86.28 $90.59 $95.12 $99.88 $104.87 Fire Service Water Meter Monthly Base Charge: FYE 2015 FYE 16 FYE 17 FYE 18 FYE 19 3/4" Meter $21.56 $22.64 $23.77 $24.96 $26.21 1" Meter $35.85 $37.64 $39.52 $41.50 $43.58 1-1/2" Meter $50.14 $52.65 $55.28 $58.04 $60.95 2" Meter $64.43 $67.65 $71.03 $74.59 $78.32 3" Meter $78.69 $82.62 $86.76 $91.09 $95.65 4" Meter $92.98 $97.63 $102.51 $107.64 $113.02 6” Meter $107.27 $112.63 $118.27 $124.18 $130.39 8” Meter $121.56 $127.64 $134.02 $140.72 $147.76 Wastewater Rates: Residential & Commercial Sewer Monthly Base Charge per equivalent dwelling unit (EDU): FYE 2015 FYE 16 FYE 17 FYE 18 FYE 19 $33.94 $36.32 $38.86 $41.58 $44.49 Residential Sewer Usage Charge: 15% of water usage charge Commercial Sewer Usage Charge: 1/3 of water usage charge Infrastructure Repair & Replacement Monthly Fees: Water: $1.88 per month per EDU Wastewater: $2.25 per month per EDU

In addition, increases in charges to RSWD, if any, for the purchase of imported water will be passed through to RSWD customers automatically as increases in the water consumption charge.

27

RGross

Typewritten Text

ATTACHMENT 1

Page 2 of 2

NEED FOR THE RATE AND FEE INCREASE The majority of the rates and fees in the Water and Wastewater Budgets for Fiscal Year 2014/15 include an increase to generate additional revenue needed to: offset the loss of the leachate disposal revenue from the County of San Bernardino, offset lower property tax allocations, fund increases in several operating expense categories, funding for capital improvement projects and to minimize the use of designated reserves to fund expenses. The rate increases were not the only measures used to generate a balanced budget. Other measures required to balance the budget included reductions in operating expenses where possible and deferral of nonessential activities and projects. WHAT THIS MEANS TO OUR AVERAGE CUSTOMERS WATER & SEWER BILL IN FY 2014/2015 For an average District customer who uses 1,000 cubic feet of water per month the monthly impacts would be as follows:

CURRENT RATES & FEES (FYE 2014) PROPOSED RATES & FEES (FYE 2015) Water Rates

Monthly Water Base Charge $23.50 Monthly Water Base Charge $25.85 Monthly Water Usage Charge $35.20 Monthly Water Usage Charge $38.70 Monthly Infrastructure Repair/Replacement Charge $ 1.88

Total Water Charges: $58.70 Total Water Charges: $66.43 Sewer Rates

Monthly Sewer Base Charge $30.85 Monthly Sewer Base Charge $33.94 Monthly Sewer Usage Charge $ 5.28 Monthly Sewer Usage Charge $ 5.80 Monthly Treatment Plant Loan Fee $ 3.00 Monthly Treatment Plant Loan Fee $ 3.00 Monthly Infrastructure Repair/Replacement Charge $ 2.25

Total Sewer Charges: $39.13 Total Sewer Charges: $44.99 Total Water & Sewer Charges

Total Current Water & Sewer Charges: $97.83 Total Current Water & Sewer Charges: $111.42 As you can see from the information in the table above, for an average customer with a ¾-inch water meter, the proposed rate and fee adjustments for the fiscal year ending 2015 would result in a $13.59 per month increase in the total bill for water and sewer services. PUBLIC HEARING A public hearing to consider the water and wastewater rate and fee increases will be held at a regular meeting of the RSWD Board of Directors on June 18, 2014 at 9:00 a.m. at the District office, 31242 Hilltop Blvd., Running Springs, CA. At the hearing, the RSWD Board of Directors will consider adoption of a resolution that adjusts water and wastewater rates and fees as set forth in this notice. Affected property owners or tenants responsible for paying the bills for service may protest the proposed rate increases prior to the public hearing in writing. A valid protest must contain: (1) a description of the property (address or assessor’s parcel number) sufficient to identify the property, (2) identification of the specific rate increase for which the protest is being submitted, and (3) the signature of the property owner of record as shown on the last equalized assessment roll used by the County of San Bernardino for assessing taxes, or a signature accompanied by written evidence that the signer is the owner if he or she is not identified as the owner of record on the last tax roll, or alternatively a signature of the tenant responsible for paying the bills for service. Only one written protest will be counted per parcel. All valid protests must be received by the District prior to the June 18, 2014 public hearing being closed. Protests may be mailed, or personally delivered to: Running Springs Water District P.O. Box 2206, 31242 Hilltop Blvd. Running Springs, CA 92382 A WORD ABOUT YOUR WATER BILL Please note that in the RSWD rate structure an important impact on your bill is the amount of water you use each day. As our customer, you regulate control in lowering your bill by reducing the amount of water that you use. District staff is available to talk with you about your specific water conservation needs. Please feel free to contact us at (909) 867-2766. NOTE: This notice was mailed using information contained on the last equalized assessment roll obtained from the County of San Bernardino. You may receive more than one copy if you own multiple properties or own property under more than one name. While District policy holds property owners responsible for payment of the Districts bills for water and/or wastewater, if the property in question is occupied by a tenant that you hold directly responsible for payment of the District’s bills for water and/or wastewater service, please forward this notice to that tenant.

28

29

30

31

32

33

34

35

36

RESOLUTION NO. 11-14

RESOLUTION OF THE BOARD OF DIRECTORS OF RUNNING SPRINGS WATER DISTRICT DEDICATING A SOURCE OF REVENUES FOR THE REPAYMENT OF A STATE WATER RESOURCES CONTROL BOARD CLEAN WATER STATE REVOLVING FUND LOAN

WHEREAS, the Running Springs Water District (the "District") has made an application

to the State Water Resources Control Board for a Clean Water State Revolving Fund loan (the

"SRF Loan") to finance Sewer Lift Station Nos. 1, 2 and 3 Improvements (the “Project”); and

WHEREAS, approval of the SRF Loan requires that the District establish one or more

dedicated sources of revenue for repayment of the SRF Loan before executing the financing

agreement for such SRF Loan; and

WHEREAS, this Board of Directors desires to establish such a dedicated source of

revenue for the repayment of the proposed SRF Loan.

NOW, THEREFORE, be it resolved by the Board of Directors of Running Springs

Water District as follows:

SECTION 1. Dedications. The District hereby dedicates Net Revenues of the Sewer

Proprietary Fund to payment of any and all Clean Water State Revolving Fund and/or Water

Recycling Funding Program financing for the Project. This dedicated source of Net Revenues

shall remain in effect throughout the term of such financing unless modification or change of

such dedication is approved in writing by the State Water Resources Control Board.

SECTION 2. Definitions. For purposes of this Resolution, the following capitalized

terms not previously defined herein shall have the following meanings:

A. “Sewer System” means the whole and each and every part of the Sewer

System of the District, including all real property and buildings, including the portion

thereof existing on the date hereof, and including all additions, betterments, extensions

37

09960.00000\8685775.1 2

and improvements to such sewer system or any part thereof hereafter acquired or

constructed.

B. “Net Revenues” means, for any fiscal year less an amount equal to all of

the Revenues from such fiscal year less the Operation and Maintenance Costs for such

fiscal year for the District’s Sewer Proprietary Fund.

C. “Operation and Maintenance Costs” means costs spent or incurred for

maintenance and operation of the Sewer System calculated in accordance with generally

accepted accounting principles, including (among other things) the reasonable expenses

of management and repair and other expenses necessary to maintain and preserve the

Sewer System in good repair and working order, and including administrative costs of the

District that are charged directly or apportioned to the Sewer System, including but not

limited to salaries and wages of employees, payments to the Public Employees

Retirement System, overhead, insurance, taxes (if any), fees of auditors, accountants,

attorneys or engineers and insurance premiums, and including all other reasonable and

necessary costs of the District or charges (other than debt service payments) required to

be paid by it to comply with the terms of this Agreement or any resolution or indenture

authorizing the issuance of any Contract; but excluding in all cases depreciation,

replacement and obsolescence charges or reserves therefor and amortization of

intangibles or other bookkeeping entries of a similar nature and all capital charges.

D. “Revenues” means all income, rents, rates, fees, charges and other moneys

derived from the ownership and operation of the Sewer System, including, without

limiting the generality of the foregoing, (1) all income, rents, rates, fees, charges and

other moneys derived by the District from the delivery of Sewer or other services or

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09960.00000\8685775.1 3

facilities provided in the conduct and operation of the business of the Sewer System, (2)

the proceeds of any stand-by or Sewer availability charges, development fees and

connection charges collected by the District, or (3) the earnings on and income derived

from the investment of amounts described in clauses (1) and (2) above and from Sewer

Fund reserves, but excluding (1) customers’ deposits or any other deposits or advances

subject to refund until such deposits or advances have become the property of the District

and (b) any proceeds of taxes or assessments restricted by law to be used by the District

to pay bonds or other obligations heretofore or hereafter issued.

ADOPTED this 16th day of April, 2014

Ayes: Noes: Abstentions: Absent:

__________________________________________ President of the Board of Directors Running Springs Water District

ATTEST:

____________________________________ Secretary of the Board of Directors Running Springs Water District

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09960.00000\8685775.1 4

STATE OF CALIFORNIA ) ) ss. COUNTY OF )

I, ____________________________, Secretary of the Board of Directors of Running

Springs Water District, DO HEREBY CERTIFY that the above and foregoing is a true, correct

and complete copy of Resolution No. ______ adopted by the Board of Directors of Running

Springs Water District on ______________, 2014, that the same has not been amended, modified

or rescinded and is fully effective as of this date.

DATED: __________________

___________________________________________ Secretary of the Board of Directors Running Springs Water District

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4. D.


M E M O R A N D U M DATE: April 16, 2014 TO: Board of Directors FROM: Ryan Gross, General Manager SUBJECT: CONSIDER CUSTOMER REQUEST TO DISCOUNT OR WAIVE

SEWER CONNECTION FEE RECOMMENDED BOARD ACTION It is recommended that the Board of Directors consider the attached request to discount or waive sewer connection fees. REASON FOR RECOMMENDATION The customer submitted the attached letter and verbally requested that the Board of Directors consider it at their next regularly scheduled Board meeting. BACKGROUND INFORMATION On August 23, 2012, the attached letter was sent certified mail to the owner notifying them of the requirement to connect the subject property to the District’s sewer system. FISCAL INFORMATION The sewer connection and capacity fee is currently $5,579 per equivalent dwelling unit (EDU). ATTACHMENTS Attachment 1 – Customer Email Attachment 2 – RSWD Letter

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ATTACHMENT 1

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4. E.


M E M O R A N D U M

DATE: April 16, 2014

TO: Board of Directors

FROM: Ryan Gross, General Manager

SUBJECT: CONSIDER ACCEPTING PROPOSAL FOR FISCAL YEAR 2013/14 FINANCIAL AUDIT SERVICES

RECOMMENDATION

It is recommended that the Board of Directors consider approving the attached proposal for Fiscal Year 2013/14 financial audit services.

REASON FOR RECOMMENDATION

To conduct the District’s Fiscal Year 2013/14 financial audit.

BACKGROUND INFORMATION

Van Lant & Fankhanel (VLF) has conducted the District’s last fiscal year audit. The principals of VLF have also worked on the District’s last three fiscal year audits. A copy of VLF’s proposal is attached.

FISCAL INFORMATION

VLF has proposed a fee of $22,500 which is the same fee as last year.

ATTACHMENTS

Attachment 1 – VLF Proposal

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April 7, 2014 Board of Directors Running Springs Water District 31242 Hilltop Blvd. P.O. Box 2206 Running Springs, CA 92382 We are pleased to confirm our understanding of the services we are to provide the Running Springs Water District for the year ending June 30, 2014. We will audit the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information, including the related notes to the financial statements, which collectively comprise the basic financial statements of the Running Springs Water District as of and for the year ended June 30, 2014. Accounting standards generally accepted in the United States provide for certain required supplementary information (RSI), such as management’s discussion and analysis, to supplement the Running Springs Water District’s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement we will apply certain limited procedures to the Running Springs Water District’s RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI, as applicable, is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited:

Management’s Discussion and Analysis

Budgetary Comparison Schedules

Supplementary OPEB Information

Supplementary information other than RSI also accompanies the basic financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other procedures in accordance with auditing standards generally accepted in the United States of America and will provide an opinion on it in relation to the financial statements as a whole:

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ATTACHMENT 1

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Schedule of Expenditures of Federal Awards

Other Supplementary Schedules

The following other information accompanying the financial statements will not be subjected to the auditing procedures applied in our audit of the financial statements, and our auditor’s report will not provide an opinion or any assurance on that other information.

Introductory Section

Audit Objectives

The objective of our audit is the expression of opinions as to whether your basic financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the basic financial statements taken as a whole. The objective also includes reporting on-

Internal control related to the financial statements and compliance with the provisions of applicable laws, contracts, agreements, and grants, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards.

Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.

The reports on internal control and compliance will each include a paragraph that states that the purpose of the report is solely to describe (1) the scope of testing of internal control over financial reporting and compliance and the result of that testing and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance, (2) the scope of testing internal control over compliance for major programs and major program compliance and the result of that testing and to provide an opinion on compliance but not to provide an opinion on the effectiveness of internal control over compliance, and (3) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering internal control over financial reporting and compliance and OMB Circular A-133 in considering internal control over compliance and major program compliance. The paragraph will also state that the report is not suitable for any other purpose.

We will also provide a report on agreed upon procedures performed on the District’s calculation of its annual appropriations limit as required by Article XIII B of the California State Constitution. We will perform the procedures in the Article XIII B Appropriations Limit Uniform Guidelines as published by the League of California Cities. This report will include a statement that the report is intended solely for the information and use of management, Board of Directors and specific legislative or regulatory bodies and is not intended to be and should not be used by anyone other than these specified parties.

Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of OMB Circular A-133, and will include tests of accounting records, a determination of major program(s) in accordance with Circular A-133, and other procedures we consider necessary to enable us to express such opinions and to render the required reports. If our opinions on the financial statements or the Single Audit compliance opinions are other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or to issue a report as a result of this engagement. 46

Management Responsibilities

Management is responsible for the basic financial statements and all accompanying information as well as all representations contained therein. Management is also responsible for identifying government award programs and understanding and complying with the compliance requirements, and for preparation of the schedule of expenditures of federal awards in accordance with the requirements of OMB Circular A-133. As part of the audit, we will assist with the preparation of your financial statements, schedule of expenditures of federal awards, and related notes. You are responsible for making all management decisions and performing all management functions relating to the financial statements, schedule of expenditures of federal awards, and related notes and for accepting full responsibility for such decisions. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and the schedule of expenditures of federal awards and that you have reviewed and approved the financial statements, schedule of expenditures of federal awards, and related notes prior to their issuance and have accepted responsibility for them. Further, you are required to designate an individual with suitable skill, knowledge, or experience to oversee any nonaudit services we provide and for evaluating the adequacy and results of those services and accepting responsibility for them.

Management is responsible for establishing and maintaining effective internal controls, including internal controls over compliance, and for evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met and that there is reasonable assurance that government programs are administered in compliance with compliance requirements. You are also responsible for the selection and application of accounting principles; for the fair presentation in the financial statements of the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Running Springs Water District and the respective changes in financial position and, where applicable, cash flows in conformity with U.S. generally accepted accounting principles; and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements.

Management is also responsible for making all financial records and related information available to us and for ensuring that management and financial information is reliable and properly recorded. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence.

Your responsibilities also include identifying significant vendor relationships in which the vendor has responsibility for program compliance and for the accuracy and completeness of that information. Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole.

You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud or illegal acts affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud or illegal acts could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the District complies with applicable laws, regulations, contracts, agreements, and grants. Additionally, as required by OMB Circular A-133, it is management’s responsibility to follow up and take corrective action on reported audit findings and to prepare a summary schedule of prior audit findings and a corrective action plan.

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The summary schedule of prior audit findings should be available for our review during interim fieldwork.

You are responsible for the preparation of the supplementary information in conformity with U.S. generally accepted accounting principles. You agree to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary information. You also agree to present certain supplementary information with the audited financial statements or make the audited financial statements readily available to users of the other supplementary information no later than the date the supplementary information is used with our report thereon.

Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying for us previous financial audits, attestation engagements, performance audits, or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or studies. You are responsible for providing management’s views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information.

With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document.

Audit Procedures - General

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse.

Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements or noncompliance may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or major programs. However, we will inform the appropriate level of management of any material errors, any fraudulent financial reporting, or misappropriation of assets that come to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential, and of any material abuse that comes to our attention. We will include such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors.

Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for

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responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters.

Audit Procedures - Internal Controls

Our audit will include obtaining an understanding of the entity and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards.

As required by OMB Circular A-133, we will perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to OMB Circular A-133.

An audit is not designed to provide assurance on internal control or to identify significant deficiencies. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under professional standards, Government Auditing Standards, and OMB Circular A-133.

Audit Procedures – Compliance

As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the Running Springs Water District’s compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards.

OMB Circular A-133 requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major programs. Our procedures will consist of tests of transactions and other applicable procedures described in the OMB Circular A-133 Compliance Supplement and related addenda for the types of compliance requirements that could have a direct and material effect on each of the Running Springs Water District’s major programs. The purpose of these procedures will be to express an opinion on the Running Springs Water District’s compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to OMB Circular A-133.

Engagement Administration, Fees, and Other

We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any documents selected by us for testing.

At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection Form that summarizes our audit findings. It is management’s responsibility to submit the reporting package (including financial statements, schedule of expenditures of federal awards, summary schedule of prior audit findings, auditors’ reports, and corrective action plan) along with the Data Collection Form to the federal audit clearinghouse and, if appropriate, to pass-through entities. If applicable, we will provide copies of our report for you to include with the reporting package you will submit to pass-through entities. The Data Collection Form and the reporting package must be submitted within the earlier of 30 days after receipt of the auditors’ reports or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audits. At the conclusion of the 49

engagement, we will provide information to management as to where the reporting packages should be submitted and the number to submit.

The audit documentation for this engagement is the property of Van Lant & Fankhanel, LLP and constitutes confidential information. However, pursuant to authority given by law or regulation, we may be requested to make certain audit documentation available to federal cognizant and grantor agencies, or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of our firm. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies.

The audit documentation for this engagement will be retained for a minimum of five years after the report release or for any additional period requested by the federal cognizant and grantor agencies. If we are aware that a federal awarding agency, pass-through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation.

We expect to begin our audit in May/June of 2014 and to issue our reports no later than November of 2014. Our fee for these services will be $22,500, plus an additional fee of $2,500 if a Single Audit is required. These fees are based on the current audit scope, and the assumption the single audit will include no more than one major program. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Our invoices for these services will be rendered as work progresses and are payable on presentation. In accordance with firm policies, work may be suspended if your account becomes 30 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our reports. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination.

We appreciate the opportunity to be of service to the Running Springs Water District and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign a copy of the letter (below) and return it to us.

Very truly yours,

Van Lant & Fankhanel, LLP

Greg W. Fankhanel, CPA, CFE

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Response: This letter correctly sets forth the understanding of the Running Springs Water District. Signature: Title: Date:

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4. F.


M E M O R A N D U M DATE: April 16, 2014 TO: Board of Directors FROM: Ryan Gross, General Manager SUBJECT: CONSIDER AUTHORIZING STAFF TO CONDUCT INCOME

SURVEY TO DETERMINE MEDIAN HOUSEHOLD INCOME FOR USDA GRANT FUNDING

RECOMMENDATION It is recommended that the Board of Directors consider authorizing staff to conduct an income survey to determine the median household income (MHI) for the Running Springs Water District service area in order to qualify for potential grant funding available through the USDA Rural Development Emergency Community Water Assistance Grant (ECWAG) program. REASON FOR RECOMMENDATION In order to qualify for the ECWAG program a community must have a MHI of less than $62,883. The 2010 US Census data indicates a MHI of $65,275 (+/- $9,683). BACKGROUND INFORMATION On April 4, 2014 the General Manager met with the USDA Rural Development staff to go over the requirements for our application for funding. USDA staff informed us that if the Running Springs Water District service area MHI were just $2,392 less than what was listed in the 2010 US Census we may qualify for 100% grant funding of the Ayers Acres groundwater well infrastructure project. I am working on trying to get an independent consultant to perform a MHI survey to see if we could get to a MHI of less than $62,883 and qualify for this grant funding. If we can only qualify for the USDA loan the interest rate is currently 4.375%. I have contacted the Rural Community Assistance Corporation (RCAC) and two additional consultants to see what an income survey would entail. The cost would be approximately $10K-$20K and 8-10 weeks. Attached are the USDA guidelines for MHI surveys as well as the simplified preliminary engineering report (PER) guidelines. If the District is successful in completing the application and showing that the MHI is less than $62,883 we could qualify for 100% grant funding for the Ayers Acres groundwater well infrastructure project.

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4. F.

FISCAL INFORMATION The cost to conduct the income survey is approximately $10,000 to $20,000. More detailed information should be available by the date and time of the April 16, 2014 Board meeting. ATTACHMENTS Attachment 1 – USDA MHI Survey Guidelines Attachment 2 – USDA ECWAG PER Guidelines

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Multiagency Guidelines for Median Household Income (MHI) Surveys

California Department of Public Health, State Water Resource Control Board, and United States Department of Agriculture – Rural Development

January 2013

Median Household Income (MHI) surveys are conducted for a drinking water or wastewater service area when it is believed that available household income data from such sources as American Community Survey are believed to be inaccurate. This guide is used for requesting funding agency approval to conduct an income survey which will be used to determine eligibility for these funding groups. Please do not make any changes to the guidelines, introductory letter, and survey letter without first receiving authorization by one of these funding groups. Median Household Income Surveys If there is reason to believe that the available household income data is not an accurate representation of the MHI within the permitted service area, the applicant may request an income survey which may or may not be paid for by the funding agency. The reason for the income survey must be clearly documented, and the funding agency must concur with the justification for conducting the income survey. The funding agency also may require an income survey if the MHI of the proposed service area appears to be higher than the last household income data available. The purpose of the funding program is to serve the most financially needy communities. Once the income survey is completed, it must be used in all cases regardless of whether it results in a higher or lower MHI than previously available MHI data. Income survey results can be used for five years from the date of the initial results letter or if no initial results letter is produced, the date of the final report. The funding applicant’s written request for authorization to conduct an income survey must incorporate: 1. The specific reasons why the applicant believes the available household income

data for the proposed service area is not accurate. An example of a reason that typically is accepted would be that the smallest census area available is not representative of the service area.

2. The name of a proposed reliable impartial source that will conduct the income survey, is not associated with the project, and is approved by the funding agency. Examples of the entities that are typically accepted include Rural Community Assistance Corporation, Self-Help Enterprises, California Rural Water Association, or a university. A private consultant may be accepted if not otherwise associated with the applicant in any capacity.

3. Survey procedures including: methods of making household contacts; and outlined format for reporting survey results, including a map to identify the service area boundaries.

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The following sample documents are attached:

1. letter authorizing income survey (for use by the funding agency) * 2. letter to notify users (for use by the system applying for funds) 3. letter with sample survey form (for use by third party entity) 4. table to tabulate income survey results (for use by third party entity)

*Please note: details of the MHI survey process are in the first attachment.

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1. Sample Letter Authorizing Income Survey (for use by funding agency) (Funding Applicant Name and Address) Dear This letter is to reply to your correspondence dated ________________ regarding your request to have an income survey conducted for the ____________________ project. The Median Household Income (MHI) from ______________ has been determined to be unreliable for the proposed service area due to ______________________. Concurrence by the funding agency to proceed with an income survey is subject to conformance with the following methodology when conducting the survey: 1. Assurance will be provided that the MHI resulting from the survey defines household

as a person or group of people who occupy a housing unit as their usual place of residence and that the household income is the total amount of income received for the latest tax year by all household members 15 years old and over. Income includes any sources of gross income received regularly from employment, net business or farm income, veteran’s payments, unemployment compensation, child support, Social Security or supplemental security income, public assistance, retirement, survivor or disability pensions, interest payments, or alimony. Income received by children under the age of 15 for work such as baby sitting, paper routes, or lawn mowing does not need to be included.

2. Every household within the MHI income survey boundary needs to have an equal opportunity to be included in the sample. There are two options to use in order to select households to be surveyed:

a. If the service area has less than or equal to 3,300 service connections, every

household will be contacted. The minimum number of responses required is based on the number of households in the service area and is outlined in the table below.

b. If the service area is greater than 3,300 service connections the households to be surveyed can be selected using a random numbers table or a random numbers generator such as available on the following two websites; www.randomizer.org and www.random.org. Both give guidance on how to choose random numbers for surveys, and will generate a list of random numbers. The minimum number of responses required is based on the number of households in the service area and is outlined in the table under Item No. 5 below. It is advisable to obtain more than the minimum number of required samples in case unreachable households, unoccupied homes, and other nonresponsive situations are encountered. Nonresponsive households may be replaced with households on the reserve list in the order the replacements were

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selected. For example, if a list of 200 households is drawn in an effort to obtain 152 interviews, the first household designated as unreachable should be replaced by the 153rd household in the sample. If a door to door survey is conducted, two or more passes through the area at different times should be attempted. With a telephone survey three calls should be attempted before replacing a household with another one from the reserve list.

3. The system shall send an introductory letter using the template provided in this

guide. Then, the third party surveyor will send a letter with the survey form to each home within the permitted service area, using the templates provided in this guide. Surveys may be returned by mail. If the occupant does not return a completed form, it may be necessary to go door to door. The funding agency must approve the letter explaining the need for the income survey and the survey methodology before the survey is started. Once the survey is completed it must be used in all funding projects regardless of whether it results in a higher or lower MHI than previously.

4. Documented evidence will be provided that the households in the proposed service

area (universe) have been contacted by phone, letter, or visit. Each household needs to complete the survey and return it even if it is a rental property.

5. Documentation will be provided that the survey results are statistically accurate

reflecting at least a minimum response rate as outlined in the table below. The following response rates are minimum guidelines and may be held to a higher percentage of response if required by other co-funding sources to avoid the duplication of work in completing the income surveys. The universe is defined as all households occupied for six months out of the year. Households in Universe Sample Size as Percentage

1 – 55 90 56 – 63 87 64 – 70 85 71 – 77 84 78 – 99 80 100 – 115 78 116 – 153 72 154 – 180 69 181 – 238 67 239 – 308 57 309 – 398 50 399 – 650 38 651 – 1,200 25 1,201 – 2,700 13 2,701 – or more 10

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6. A reliable impartial party who is not associated with the project will conduct the survey and will certify the results obtained as well as how the random samples were selected. The party selected to conduct the survey must be approved by the funding agency prior to beginning the income survey.

7. The actual income survey results will be submitted to the funding agency for review

and concurrence. The median income is defined as that income in the middle of the data collected from the universe after all incomes are ranked in order from lowest to highest incomes. For example, if there nine houses surveyed, and the five ranks of income are $15k, $16k, $17k, $18k, $19k, then $17k is the median income because it is two from the top and two from the bottom rank. The median may require averaging if you have an even number of universe data available, and the two incomes in the middle are different.

8. The final report should include the following; a copy of any initial results letter, a

summary of the income survey methodology, survey results, response rate calculations, service boundary map, residents list (including homes that responded, didn’t respond, vacant lot/homes, and commercial properties), sample letters and forms, and median household income data table.

9. Evidence will be provided that there is a reliable method in place to identify each

potential survey responder and further to cross reference each responder with corresponding survey returns.

10. The funding agency holds the right to audit the data five years from date published.

The key to the user list and the actual survey returns will be available to the funding agency for review.

If you have any questions, please contact _____________________ at _______________ or e-mail at ______________________________. Sincerely, [Funding Agency Contact Person]

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2. Sample Letter to Notify Users (for use by the system applying for funding)

(Use system letter head)

(Current Date)

Dear Customer,

(System name) has plans to apply to federal or state funding programs for (water/sewer) system improvements and

upgrades. We hope to optimize our funding opportunities for a (water/sewer) improvement project that will include the

following;

� (insert description of project).

These improvements will help the system operate reliably, and address (describe system deficiencies here, including

exceeded MCL for specific contaminants for water systems and discharge limits exceeded for wastewater systems).

As part of the application process (system name) will have an impartial third party contractor perform a focused household

income survey of their customers. This income survey will be used by funding agencies to determine (water/sewer

companies) eligibility for low interest loans and grants.

(name of company/organization doing the survey) will perform this survey. An income survey will be mailed to you in the

next few days. Please complete the information and return it to (name and address to return survey). Income surveys

require a high percentage of residents to respond for the survey to be considered valid under current guidelines. It is

therefore critical that you provide the information requested on the survey form. Your responses to this survey are strictly

confidential. No personal identifying information will be reported in the survey results.

You can help your community and (water/sewer) system obtain the best possible funding from federal and state funding

agencies, so that needed improvements can be made. Thank you for your assistance. For more information please feel free

to contact:

(System Contact information)

(Contact information for the company/organization doing the survey)

Thank you for your help,

(Name, and Title)

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7 Revised 1/10/13

3. Sample Letter and Sample Survey Form (for use by third party entity) .

(Current Date)

ATTENTION: RESIDENTS OF

(System Name)

The (system name) has authorized (name of company/organization) to conduct a confidential income survey in your

neighborhood. Attached is the survey form that will be utilized to obtain the needed information. Please complete the

survey to the best of your ability.

The information on this survey is necessary to assist the water system obtain funding from various federal or state funding

programs. The funding will be used to construct a (description of project). This will enable the District to meet current

(drinking water standards or discharge requirements) and upgrade the (water/sewer) system to improve the (water quality

or discharge). This survey is being conducted to establish an accurate Median Household Income (MHI) of the

(water/sewer) service area.

This information will not be made public. It is important that the information you provide is an accurate

representation of the questions asked. Please take the minute or two that it takes to complete the attached survey now. Please return the completed survey form to the following address (insert address). If you request it, assistance can be

arranged to help you fill it out. If a response is not received within 15 days, you will receive an additional notice with a

second copy of the form for your response. A high response rate is needed for the (water/sewer) system to be considered

for optimal funding alternatives. No identifying information will be kept with the questionnaires.

Once the completed surveys have been received, the (company/organization) will analyze the responses, determine the

MHI for your community, and report the results to the funding agencies that disburse the loans and grants. Responses to

this survey form are confidential.

If you would like more information about the survey and how the information will be utilized to assist the residents of

(system name), please feel free to contact:

(System contact person, address, phone number, e-mail address)

(Company/organization contact person, address, phone number, e-mail address)

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Median Household Income (MHI) Survey for Special Funding Eligibility Verifiable Income from (enter tax year before mailing) Federal Income Tax Filling

Residential Address_________________________________ Survey Number ______________ 1. Was this survey sent to a commercial business?

Yes �� Stop and return this form in the envelope provided. No �� Complete the survey. 2. Did you live at this residence within the water or sewer district boundary more than six

months of the year? Yes �� Please complete Questions 3 to 6 and return this form in the envelope provided. No �� This is a vacation home (stop and return this form in the envelope provided). No �� This is a vacant home (stop and return this form in the envelope provided). No �� This home is currently rented, and I am the owner (please complete the information on the back of this form and return in the envelope provided). 3. How many people reside at this household, including children and adults? 4. Provide the total household annual gross earnings in (tax year) from: Wages, salary, commissions, & bonuses from all jobs of residents 15 or older $ 5. Provide the total household net annual earnings in (tax year) from: Farm or non-farm business, professional practice, or partnership income. $ 6. Provide any other household annual earnings in (tax year) from: Social Security or supplemental security income, public assistance,

retirement plans, veteran’s payments, child support, alimony, unemployment benefits, interest income, survivor or disability pensions, or any other source of income received regularly. $

TOTAL INCOME (enter tax year) $

__________________________________________ Printed Name __________________________________________ Property Address __________________________________________ Signature Date

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(Continued from front page) If property is a rental, please complete the information below:

Property Rental Information

Renter’s Name:

Mailing Address:

Service Address:

Please return this survey in the enclosed postage-paid envelope.

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10 Revised 1/10/13

4. Sample Table to Tabulate Income Survey Results (for use by third party entity)

Survey Ascending

Order Survey Number

# of People in Residence

Annual Gross Income Reported Survey Date

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

63

(3/14)

Rural Development - California

Emergency Community Water Assistance Grant (ECWAG)

Preliminary Engineering Report (PER) - Simplified

Notes The PER must be prepared using the following simplified format and be stamped by a licensed California

civil engineer Normally, a report that is several pages in length will be sufficient.

The Emergency Community Water Assistance Grant (ECWAG) program assists communities that have experienced a significant decline in quantity or quality of water due to drought conditions or in which such a decline is considered imminent. A significant decline in quality is said to occur when the water is no longer potable as a direct result of the drought.

For cases in which the decline is considered imminent, the PER must contain technical justification to support the assertion that such a decline is likely to occur within one year.

1) PROJECT PLANNING

• Briefly describe the project location and include a location map.

• Describe the project site conditions and any environmental issues that may impact the project.

2) EXISTING FACILITIES

• Describe the existing water system components (supply sources, treatment, storage, etc.)

• Discuss the condition of the existing system components.

• Provide the water system supply/demand/capacity for normal operating conditions and describe the changes to the normal operating conditions that are attributable to the drought.

• Discuss any water quality issues affecting the proposed water supply

3) NEED FOR PROJECT

Describe the drought conditions and its impact on the quantity and/or quality of water supplied to the system. Discuss if water rationing has either been implemented or is being proposed.

4) ALTERNATIVES CONSIDERED a) Description

Describe the various alternatives considered to address the water supply issues caused by drought conditions. Include a discussion of whether it is feasible to interconnect with an existing system. Briefly describe the alternatives that were determined to be unfeasible due to technical or financial reasons.

• New Groundwater Supply (if applicable): Discuss the availability of groundwater in terms of quantity and water quality. If a new well(s) is being proposed, discuss the rationale for assuming that a reliable source can be obtained.

• New Surface Water Supply (if applicable): Discuss the availability of surface water in terms of access, rights and cost.

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USDA Rural Development – California Preliminary Engineering Report (PER) – ECWAG

Page 2

b) Design Criteria/Compliance Issues: Describe the design parameters and any compliance issues used for the

evaluation of alternatives. Identify any permits that will be required for the project. Identify sites and any easements required for the project. Describe any necessary operational/connection agreements needed for the project.

c) Feasibility: Provide rough cost estimates for alternatives that were evaluated to be feasible. Briefly discuss any alternatives that were determined to be unfeasible due to excessive cost or the length of time the project would take to complete.

5) SELECTION OF AN ALTERNATIVE

Provide a discussion of the selection of the recommended project alternative. The report should clearly discuss the factors considered and the rationale for the selection of the project alternative. (Non-monetary factors can be considered when evaluating alternatives.) If temporary measures are being proposed, discuss in detail why a long-term solution is not feasible.

6) PROPOSED PROJECT (RECOMMENDED ALTERNATIVE)

a) Description:

Provide a proposed project description based on the findings of the alternatives analysis for the proposed project components. Provide a layout map of the proposed project showing the location of the planned system components.

b) Total Project Cost Estimate: Provide an itemized estimate of the construction cost and the Total Project Cost based on the stated period of construction. Include development and construction, land and rights, legal, engineering, interest equipment, contingencies, refinancing and other costs associated with the proposed project.

7) CONCLUSIONS AND RECOMMENDATIONS

This section of the PER needs to include the following specific language:

It is my professional opinion that the community has experienced a significant decline in the {quantity} {quality} of water that is attributable to the current drought conditions and that the proposed project is necessary to alleviate this problem.

OR

It is my professional opinion that it is imminent that the community will experience a significant decline in the {quantity}{quality} of water if the current drought conditions persist and that such a significant decline is likely to occur within one year. It is also my opinion that the proposed project is necessary to alleviate this upcoming problem.

The PER is required to be signed and stamped by a California registered civil engineer.

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5. A.


M E M O R A N D U M DATE: April 16, 2014 TO: Board of Directors FROM: Ryan Gross, General Manager SUBJECT: REVIEW OF DRAFT ORDINANCE NO. 42, DECLARING A

WATER SHORTAGE EMERGENCY AND ADOPTING A WATER CONSERVATION PROGRAM, SUPERSEDING AND REPLACING IN THEIR ENTIRETY ORDINANCES NO. 34 AND 17

RECOMMENDED BOARD ACTION This is an information item only. REASON FOR RECOMMENDATION This is an information item only. BACKGROUND INFORMATION Attachment 1 contains a completely revised version of the proposed draft Ordinance No. 42 based on the feedback received from the Board on March 19, 2014. Staff is seeking direction and any comments from the Board of Directors on the content of this proposed draft. On March 19 and February 19, 2014 staff presented information to the Board as a reminder of the current policy and to seek any suggested revisions to the policy in order to cope with a water supply shortage which may become even worse in the future. On November 17, 2010, the District Board of Directors adopted Ordinance No. 34, Amending Ordinance No. 17 to provide that when the Board has declared a Phase II Shortage, or greater, water service provided through water meters for irrigation purposes shall be terminated until such time as the Phase II Shortage, or greater, has ended. On April 3, 1991 the District Board of Directors adopted Ordinance No. 17, Declaring a Water Shortage Emergency and Establishing a Water Conservation Program with provision for the declaration of various stages of water shortage. ATTACHMENTS Attachment 1 – Draft Ordinance No. 42

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ORDINANCE NO. 42

AN ORDINANCE OF RUNNING SPRINGS WATER DISTRICT DECLARING A WATER SHORTAGE EMERGENCY AND ADOPTING A WATER CONSERVATION

PROGRAM, SUPERSEDING AND REPLACING IN THEIR ENTIRETY ORDINANCES NO. 34 AND 17

WHEREAS, Running Springs Water District (hereinafter “District”) is a public agency formed pursuant to Sections 30000-33901 of the California Water Code to provide certain services, including retail water service; and

WHEREAS, on average over the past five (5) years, the District purchased from other suppliers approximately 39% of the water supplied to its customers, including approximately 25% from the State Water Project through the facilities of the Crestline-Lake Arrowhead Water Agency (hereinafter “CLAWA”) and approximately 14% from the Arrowbear Park County Water District; and

WHEREAS, on January 17, 2014, Governor Brown issued a drought state of emergency declaration in response to record low water levels in California’s rivers and reservoirs as well as an abnormally low snowpack; and

WHEREAS, the Governor’s proclamation called upon all Californians to reduce their water usage by 20 percent; and

WHEREAS, the Governor’s proclamation called upon local urban water suppliers and municipalities to implement any local water shortage contingency plans immediately in order to avoid or forestall outright restrictions that could become necessary later in the drought season; and

WHEREAS, on January 17, 2014, the California State Water Resources Control Board notified all water rights holders in California that, in the coming months, if dry weather conditions persist, the State Water Board will notify water rights holders in critically dry watersheds of the requirement to limit or stop diversions of water under their water right, based upon the priority of their right; and

WHEREAS, the California Department of Water Resources announced on January 31, 2014 that the allocation from the State Water project would be 0% in 2014 if current dry conditions persist; and

WHEREAS, these cuts in delivery could be as much as 100% of the water requested by the Crestline-Lake Arrowhead Water Agency from the State Water Project, significantly reducing CLAWA’s ability to supply water to the District; and

WHEREAS, the drought conditions have also reduced the amount of water produced by the District’s own wells, and from water purchased from the wells of the Arrowbear Park County Water District; and

WHEREAS, the District is authorized pursuant to Water Code section 31026 to restrict

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ATTACHMENT 1

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the use of District water during a threatened or existing water shortage, and to prohibit the wasteful use of District water during such periods; and

WHEREAS, the unrestricted use of District water for irrigation of landscaping (that is not necessary for fire protection or erosion control) is a nonessential use. If such use is regulated, prohibited or restricted during the period of the water shortage emergency, such regulations, prohibitions and restrictions will assist in the conservation of water for domestic use, sanitation and fire protection; and

WHEREAS, the District is further authorized by Water Code Sections 350, et seq., to declare a water shortage emergency; and

WHEREAS, the District’s Board of Directors determines that the adoption of water conservation rules and regulations is necessary to (1) protect the health, safety and welfare of the customers of the District, and (2) assure the maximum beneficial use of the water supplies of the District for the basic needs of human consumption, sanitation and fire protection; and

WHEREAS, the Board of Directors further determines that the specific rules, regulations and restrictions established herein are necessary emergency measures to cope with an existing water supply shortage which may become even worse in the future;

NOW, THEREFORE, BE IT ORDAINED by the Directors of Running Springs Water District as follows:

Section 1. Purpose and Findings

(a) This Board finds that a drought emergency and water shortage exists which requires the enactment and enforcement of this Ordinance. Because of the water supply conditions prevailing in the District, and/or in the area from which the District obtains the major portion of its supply, the general welfare of the District’s customers requires that the water resources available to the District be put to the maximum beneficial use in the interest of the people of the District and for the public welfare.

(b) The purpose of this Ordinance is to provide a mandatory water conservation plan to minimize the effect of water supply shortages on the customers of the District during a water shortage emergency. The District’s first priority in the implementation of these regulations and restrictions will be the preservation of water to satisfy domestic consumptive needs, for adequate fire protection, and to preserve the health, safety, and welfare of the customers of the District.

Section 2. General Prohibition

No customer of the District shall make, cause, use, or permit the use of water from the District in a manner contrary to any provision of this Ordinance or in an amount in excess of that permitted by any curtailment provision then in effect pursuant to action taken by the District’s Board of Directors in accordance with the provisions of this Ordinance.

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Section 3. Phase 1 Water Shortage

(a) A Phase 1 Shortage may be declared when the District’s Board of Directors determines that the District may have a shortage of up to ten percent (10%) in its water supply. The District will increase its public education and outreach efforts to emphasize increased public awareness of the need to implement the following water conservation practices:

(b) The following restrictions and requirements shall be in effect during a Phase 1 Shortage:

(1) There shall be no hose washing of sidewalks, walkways, driveways, parking areas, or other paved surfaces, except as is required for sanitary purposes;

(2) Washing of motor vehicles, trailers, boats and other mobile equipment shall be done only with a hand-held bucket or a hose equipped with a positive shutoff nozzle for quick rinses.

(3) No water shall be used to clean, fill or maintain levels in decorative fountains, ponds, lakes or other similar aesthetic structures unless such water is part of a recycling system.

(4) No restaurant, hotel, motel, cafe, cafeteria or other public place where food is sold, served or offered for sale shall serve drinking water to any customer unless expressly requested. Hotels, motels, and other commercial lodging establishments must offer guests the option of not laundering towels and linens daily.

(5) All customers of the District shall promptly repair all leaks from indoor and outdoor plumbing fixtures.

(6) Between October 16th and April 30th, all outdoor irrigation shall be shut off and irrigation systems shall be winterized to prevent ruptured pipes and leaks. If a Customer’s irrigation is still on as of October 16th or turned on prior to May 1st, the Customer’s water meter is subject to being shut off by District staff after seventy two (72) hours written notice to the customer at his last known address and the Customer’s failure to turn off the outdoor irrigation. If the District turns off a Customer’s water meter pursuant to this Subsection, a shut off fee established by the District will be applied to the Customer’s water account.

(7) Automated irrigation of all landscapes, plants, trees and land may be done only between the hours of 6:00 p.m. and 8:00 a.m., with the exception of newly seeded plants and other new planting, which may be watered intermittently until rooting is established. Outdoor irrigation shall only be allowed on the following days during the established irrigation season and hours: Monday, Wednesday, Friday Customers must limit lawn watering

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and landscape irrigation using sprinklers to no more than ten (10) minutes per watering station per day. This provision does not apply to landscape irrigation systems using water efficient devices, including but not limited to: weather based controllers, drip/micro-irrigation systems and stream rotor sprinklers.

(8) No customer of the District shall cause or allow water to run from landscaped areas into adjoining streets, sidewalks or other paved areas due to incorrectly directed or maintained sprinklers or excessive watering.

(9) No Customer shall use District water to irrigate property outside the boundaries of the parcel to which service is being delivered.

(c) Customers of the District are required to install and maintain, at their expense, a shutoff valve on the customer’s side of the meter to allow the on-site plumbing to be shut off and drained as necessary to prevent loss of water from frozen or broken pipes. It shall be the customer’s responsibility to turn off the shutoff valve upon leaving the premises, and to insulate exposed pipes and valves to protect the piping from water loss caused by leaks and freezing.


(a) A Phase 2 Shortage may be declared when the District’s Board of Directors determines that the District may have a shortage of up to twenty percent (20%) in its water supply.

(b) The following restrictions and requirements shall be in effect during a Phase 2 Shortage:

(1) Those listed in Section 3, subsections (b) and (c) of this Ordinance.

(2) Residential User Category: The amount of water used by residential users during any billing period of the District’s fiscal year immediately prior to the fiscal year in which the Board declared a water shortage emergency (“Baseline Year”) shall be reduced during the same billing period of subsequent years by the percentage determined by the District’s Board of Directors of up to twenty percent (20%).

(3) Commercial User Category:

(a) Except as provided in subsection b, below, commercial businesses, restaurants, and other commercial users shall be required to reduce their water consumption for each billing period by the percentage determined by the District’s Board of Directors between ten percent (10%) to twenty percent (20%) of their consumption used in the same billing period of the Baseline Year.

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(b) Water use for commercial Laundromats shall be limited to no more than the amount of water used on the customer’s premises during the same billing period of the Baseline Year. Water used in excess of this amount shall subject the operator of the Laundromat to a misdemeanor, but shall not subject the customer to the shut-off or other penalty provisions of this Ordinance unless other provisions of the Ordinance are also violated.

(4) Park and Recreation User Category:

Park and Recreation facilities shall be required to reduce their water consumption for each billing period by the percentage determined by the District’s Board of Directors between ten percent (10%) to twenty percent (20%) of their consumption used during the same billing period of the Baseline Year.

(5) Public School Facility User Category:

The local Public School facility shall be limited to no more than its average monthly water usage during the school year within the Baseline Year (i.e., September through May). Water usage in excess of that amount will be subject to the District’s conservation surcharge rate but shall not subject the customer to the shut-off or violation provisions of this Ordinance unless other provisions of this Ordinance are also violated. The school shall make every effort to prevent water from being wasted or used in violation of this Ordinance.

(6) Outside Service Agreements:

During a Phase 2 Shortage, water deliveries by the District to areas being served pursuant to District’s standard outside service agreements will be reduced for each billing period by the percentage determined by the District’s Board of Directors between ten percent (10%) to twenty percent (20%) of their consumption used in the same billing period of the Baseline Year. If during the billing period the District is charged a water usage surcharge by CLAWA, all water delivered under such outside service agreements shall have that CLAWA surcharge rate added to the rate normally charged by the District. Water consumption in excess of the allowed monthly limit shall subject the customer to Section 10 of this Ordinance.

(7) Undeveloped Property Residential Water Meters.

An undeveloped property that has a residential water meter installed for irrigation purposes will have the meter turned off and service discontinued in the event the District’s Board of Directors declares a Phase 2 (or higher) water shortage exists. Service will not be resumed until after a water

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conservation emergency has been lowered to a Phase 1 water shortage or no water shortage is declared.

The meter will remain in the ground unless the customer requests its removal. During the declared Phase 2 (or higher) water shortage, the customer will not incur any monthly service charges. All monthly charges will be waived until after a water conservation emergency has been lowered to a Phase 1 water shortage or no water shortage has been declared; at such time, all monthly charges will resume.

(8) Irrigation Water Meters:

A developed property which has installed an irrigation water meter used solely for irrigating vegetation will have the meter turned off and service discontinued in the event the District’s Board of Directors declares a Phase 2 (or higher) water shortage exists. Service will not be resumed until after the declared shortage has been lowered to a Phase 1 water shortage or no water shortage is declared.

The meter will remain in the ground unless the customer requests its removal. During the declared Phase 2 (or higher) water shortage, the customer will not incur any monthly irrigation meter service charges, however, all customary charges will remain in effect for the residential meter. All irrigation meter monthly charges will be waived until after the declared shortage has been lowered to a Phase 1 water shortage or no water shortage has been declared; at such time, all monthly charges will resume.


(a) A Phase 3 Shortage may be declared whenever the District’s Board of Directors determines that the District may have a shortage of more than twenty percent (20%) but less than thirty percent (30%) in its water supply.

(b) The following restriction and requirements shall be in effect during Phase 3 Shortage:

(1) Those listed in Section 3, subsections (b) and (c) of this Ordinance. In addition, residential and commercial landscape irrigation will be limited to no more than two assigned days per week on a schedule established by the General Manager and posted by the District.

(2) Residential User Category: The amount of water used by residential users during any billing period of the District’s fiscal year immediately prior to the Baseline Year shall be reduced during the same billing period of subsequent years by the percentage determined by the District’s Board of Directors of up to thirty percent (30%).

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The same restrictions as set forth in subsection (4)(b)(3)(a & b), except that the percentage of water usage shall be reduced by the percentage determined by the District’s Board of Directors between twenty percent (20%) to thirty percent (30%) or their consumption used in the same billing period of the Baseline Year.


The same restrictions as set forth in subsection (4)(b)(4), except that the percentage of water usage shall be reduced by the percentage determined by the District’s Board of Directors between twenty percent (20%) to thirty percent (30%) of their consumption used in the same billing period of the Baseline Year.


The same restrictions and requirements as those listed in subsection (4)(b)(5).


The same restrictions as set forth in subsection (4)(b)(6), except that the percentage of water usage shall be reduced by the percentage determined by the District’s Board of Directors between twenty percent (20%) to thirty percent (30%) of their consumption used in the same billing period of the Baseline Year.


(a) A Phase 4 Shortage may be declared whenever the District’s Board of Directors determines that the District may have a shortage of more than thirty percent (30%) but less than forty percent (40%) in its water supply.

(b) The following restrictions and requirements on the use of water shall be in effect during Phase 4 Shortage:

(1) Those listed in Section 3, subsections (b) and (c) of this Ordinance. However, the Board may decide to impose further restrictions or completely eliminate all irrigation.

(2) Residential User Category: The amount of water used by residential users during any billing period of the District’s fiscal year immediately prior to the Baseline Year shall be reduced during the same billing period of subsequent years by the percentage determined by the District’s Board of Directors of up to forty percent (40%).

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The same restrictions as set forth in subsection (4)(b)(3)(a & b), except that the percentage of water usage shall be reduced by the percentage determined by the District’s Board of Directors between thirty percent (30%) to forty percent (40%) of their consumption used in the same billing period of the Baseline Year.


The same restrictions as set forth in subsection (4)(b)(4), except that the percentage of water usage shall be reduced by the percentage determined by the District’s Board of Directors between thirty Percent (30%) to forty percent (40%) of their consumption used in the same billing period of the Baseline Year.




The same restrictions as set forth in subsection (4)(b)(6), except that the percentage of water usage shall be reduced by the percentage determined by the District’s Board of Directors between thirty percent (30%) to forty percent (40%) of their consumption used in the same billing period of the Baseline Year.

Section 7. Phase V Water Shortage

(a) A Phase V Shortage may be declared whenever the District’s Board of Directors determines that the District may have a shortage of more than forty percent (40%) but less than fifty percent (50%) in its water supply.

(b) The following restrictions and requirements on the use of water shall be in effect during Phase V Shortage:

(1) Those listed in Section 3, subsections (b) and (c) of this Ordinance. However, the Board may further decide to restrict all irrigation.

(2) Residential User Category: The amount of water used by residential users during any billing period of the District’s fiscal year immediately prior to the Baseline Year shall be reduced during the same billing period of subsequent years by the percentage determined by the District’s Board of Directors of up to fifty percent (50%).


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The same restrictions as set forth in subsection (4)(b)(3)(a & b), except that the percentage of water usage shall be reduced by the percentage determined by the District’s Board of Directors between forty percent (40%) to fifty percent (50%) of their consumption used in the same billing period of the Baseline Year.


The same restrictions as set forth in subsection (4)(b)(4), except that the percentage of water usage shall be reduced by the percentage determined by the District’s Board of Directors between forty percent (40%) to fifty percent (50%) of their consumption used in the same billing period of the Baseline Year.




The same restrictions as set forth in subsection (4)(b)(6), except that the percentage of water usage shall be reduced by the percentage determined by the District’s Board of Directors between forty percent (40%) to fifty percent (50%) of their consumption used in the same billing period of the Baseline Year.

Section 8. Phase VI Water Shortage

(a) A Phase VI Shortage may be declared whenever the District’s Board of Directors determines that it is likely that it will suffer a shortage of more than fifty percent (50%) but less than sixty percent (60%) in its available water supply.

(b) The following restrictions and requirements on the use of water shall be in effect during Phase VI Shortage:

(1) Those listed in Section 3, subsections (b) and (c) of this Ordinance.

(2) Residential User Category: The amount of water used by residential users during any billing period of the District’s fiscal year immediately prior to the Baseline Year shall be reduced during the same billing period of subsequent years by the percentage determined by the District’s Board of Directors of up to sixty percent (60%).


The same restrictions as set forth in subsection (4)(b)(3)(a & b), except that the percentage of water usage shall be reduced by the percentage

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determined by the District’s Board of Directors between fifty percent (50%) to sixty percent (60%) of their consumption used in the same billing period of the Baseline Year.


The same restrictions as set forth in subsection (4)(b)(4), except that the percentage of water usage shall be reduced by the percentage determined by the District’s Board of Directors between fifty percent (50%) to sixty percent (60%) of their consumption used in the same billing period of the Baseline Year.




The same restrictions as set forth in subsection (4)(b)(6), except that the percentage of water usage shall be reduced by the percentage determined by the District’s Board of Directors between fifty percent (50%) to sixty percent (60%) of their consumption used in the same billing period of the Baseline Year.

(c) “Will-Serve” and Availability Letters:

The District will only issue “Will-Serve” and Availability Letters for land division projects and new meter installations where the projects provide the District with water sources such as new groundwater wells sufficient to meet the water needs of the proposed project or contribute a proportional share of the cost for the District to develop new groundwater.

(d) Construction Water:

(1) The use of water from fire hydrants shall be limited to fire fighting and other related activities; other uses of water for municipal purposes shall be limited to activities necessary to maintain the public health, safety and welfare. No water shall be available through fire hydrants for construction purposes.

Section 9. Additional Water Shortage Measures

The District may order implementation of water conservation measures in addition to those set forth in this Ordinance.

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Section 10. Violation of Ordinance. It shall be a misdemeanor for any person to violate this Ordinance. A regulatory fee may be imposed to enforce the provisions of this Ordinance.

Section 11. Relief from Compliance

(a) A customer may file an application for relief from any provision of this Ordinance. The General Manager may develop procedures consistent with the provision of this section to resolve such applications and shall, upon the filing by a customer of an application for relief, take such steps as the General Manager determines necessary to resolve the application for relief.

(b) The application for relief may include a request that the customer be relieved, in whole or in part, from the water use curtailment provisions.

(c) In determining whether to grant relief, and the nature of any relief, the General Manager shall take into consideration all relevant factors including, but not limited to:

(1) Whether any additional reduction in water consumption will result in unemployment;

(2) Whether additional members have been added to the household;

(3) Whether any additional landscaped property has been added to the property since the corresponding billing period of the prior calendar year.

(4) Changes in occupancy factors;

(5) Increased number of employees in commercial, business, industrial and governmental offices;

(6) Increased production requiring increased process water;

(7) Water uses during new construction;

(8) Adjustments to water use caused by emergency health or safety hazards;

(9) First filling of a permit-constructed swimming pool;

(10) Water use necessary for reasons related to family illness or health; and

(11) Leaks which occurred between the water meter and the customers shut-off valve which were beyond the owner’s control.

(d) In order to be considered, an application for relief from any provision of this Ordinance must be filed with the District’s business office within fifteen calendar days from the date the provision from which relief is sought becomes applicable to the applicant. No relief shall be granted unless the customer has achieved the maximum practical reduction in water consumption other than in the specific

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areas in which the relief is being sought. No relief shall be granted to any customer who, when requested by the General Manager, fails to provide any information necessary for the resolution of the customer’s application for relief.

Section 12. Water Conservation Kits

A water saving kit shall be available from the District, free of charge, to each retail customer within the District boundary who requests one, so long as the District has kits available. District customers are urged to use water conservation kits and water efficient fixtures.

Section 13. CEQA Exemption

On January 17, 2014, Governor Brown declared a Drought State of Emergency and found that the ongoing drought in California places the drinking water supplies in many communities at risk. On April 3, 2014, RSWD’s primary supplier of imported water, the Crestline-Lake Arrowhead Water Agency, also declared a water shortage emergency. Consistent with the Governor’s declaration, as well as the declaration by the Crestline-Lake Arrowhead Water Agency, the Board finds and determines that the adoption of this Ordinance and implementation of the measures set forth herein are statutorily exempt as an emergency action as defined in California Public Resources Code Section 21060.3 and CEQA Regulations Section 15263(c), which defines emergency projects as “specific actions necessary to prevent or mitigate an emergency”.

Section 14. Duration

The regulations and restrictions in this Ordinance shall be and remain in full force and effect during the period of the emergency and until the supply of water available for distribution within the District has been replenished or augmented.

Section 15. Severability

If any part of this Ordinance or the application thereof to any person or circumstances is for any reason held invalid by a court of competent jurisdiction, the validity of the remainder of the Ordinance or the application of such provision to other persons or circumstances shall not be affected.

Section 16. Effective Date

This Ordinance shall become effective immediately upon adoption.

Section 17. Publication

The Secretary of the Board of Directors shall arrange for a summary of this Ordinance to be published in a newspaper of general circulation printed and published within the District’s boundaries, along with the names of the Directors voting for and against the Ordinance, within fifteen (15) days after adoption. In addition, a copy of this Ordinance shall be posted in the office of RSWD for public review.

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ADOPTED this ____ day of ___________, 2014.

Ayes: Noes: Abstentions: Absent:

By: Kenneth Ayers, President of the Board of Directors

ATTESTED:

Joan C. Eaton Secretary of the Board of Directors

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Documents

TO: BOARD OF DIRECTORS DATE POSTED: APRIL 11 ......A. Approval of Minutes for March 19, 2014 Regular Board Meeting Page 3 B. Approval of Minutes for April 2, 2014 Special Board Meeting