i 8 p.m. i

! ! Cucamonga Valley® �Water District

Service Beyond Expectation

CUCAMONGA VALLEY WATER DISTRICT BOARD OF DIRECTORS MEETING AGENDA

lanuary 23, 20 I 8 - 6:00 p.m. District Office, Board Room

I 0440 Ashford Street; Rancho Cucamonga, Cal ifornia

I . CALL TO ORDER I FLAG SALUTE

2. ADDITIONS/DELETIONS TO AGENDA

3 . PUBLIC COMMENT Members of the public may comment on any item listed or not listed on the agenda. Comments related to noticed public hearing items will be heard at the time the public hearing is conducted. Speakers are requested to keep their comments to no more than (lve (5) minutes. The President may reduce the time to not less than three (3) minutes depending upon the number of speakers wishing to address the Board. Under the provisions of the Brown Act, the Board is prohibited from taking action on items not listed on the agenda.

4. GENERAL MANAGER/CEO REPORTS

A) District Updates

B) IEUA Board Meeting Agenda

5. CONSENT CALENDAR All matters listed under the Consent Calendar are considered routine and will be enacted by one vote. There will be no separate discussion of these items unless members of the Board request speci(lc items be removed for separate action.

A) Approve Minutes of the December 20, 2017 Special Board Meeting.

B) Approve Minutes of the January 8, 2018 Special Board Meeting.

C) Approve Board Calendar of Events.

D) Approve Cash and Investment Report for month ending . December 3 I , 20 17.

E) Receive and File Monthly Budget Report for month ending November 30, 20 17.

F) Receive and File December 2017 Water Production Report.

JANUARY 23, 20 1 8 BOARD MEETING AGENDA PAGE 2

G) Receive and File December 20 1 7 Water Use Efficiency Report.

H) Receive and File January 20 1 8 Communications & Outreach Report.

I) Receive and File January 20 1 8 Legislative & Government Affairs Report.

J) Receive and File Quarterly Pars Investment Report for quarter ended December 3 1 , 20 1 7.

K) Approve the award of contract for the construction of New Well 48 Transmission Main to C. P. Construction, Co., Inc. in the amount of $656,440.00.

L) Adopt Resolution No. 20 1 8- 1 - 1 amending Administrative Policy No. 1 .4, Investment Policy.

6. BOARD COMMITTEE REPORT

A) January I I , 20 1 8 Finance Committee

7. BOARD MEMBER REPORTS

RECESS A brief recess will be held prior to Closed Session

8. CLOSED SESSION

PUBLIC EMPLOYEE PERFORMANCE EVALUATION Pursuant to Government Code Section 54957 Title: General Manager

CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code Section 54957.6 Agency designated representatives: President Curatalo; General Counsel Ferre Unrepresented employee: General Manager

9. RECONVENE/REPORT ON CLOSED SESSION

I 0. GENERAL MANAGER/CEO CONTRACT CONSIDERATION AND POSSIBLE ACTION TO APPROVE AN AMENDMENT TO THE EMPLOYMENT AGREEMENT FOR THE GENERAL MANAGER/CEO

Posted 01-18-18

jANUARY 23, 20 1 8 BOARD MEETING AGENDA PAGE 3

I I . ADJOURN

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Board Secretary (9 09) 9 87-2591, 48 hours prior to the scheduled meeting so that the District can make reasonable arrangements.

Pursuant to Government Code Section 54957.5, any writing that (I) is a public record; (2) relates to an agenda item for an open session of a regular meeting of the Board of Directors; and (3) is distributed less than 72 hours prior to that meeting, will be made available for public inspection at the time the writing is distributed to the Board of Directors. Any such writing will be available for public inspection at the District offices located at I 0440 Ashford Street, Rancho Cucamonga, CA 91 72 9 . In addition, such writing may also be posted on the District's web site.

Posted 0/-/8-/8

Inland Empff!��til�[�s Agency A MUNICIPAL WATER DISTRICT

AGEND A

COMMISSION MEETING OF THE CHINO BASIN REGIONAL FINANCING AUTHORITY

AND

MEETING OF THE BOARD OF DIRECTORS

WEDNESDAY, JANUARY 17, 2018 10:00 A.M.

INLAND EMPIRE UTILITIES AGENCY* AGENCY HEADQUARTERS

BOARD ROOM 6075 KIMBALL AVENUE, BUILDING A

CHINO, CALIFORNI A 91708

CALL TO ORDER OF THE CHINO BASIN REGIONAL FINANCING AUTHORITY

FLAG SALUTE

PUBLIC COMMENT

Members of the public may address the Commission on any item that is within the jurisdiction of the Board; however, no action may be taken on any item not appe.aring on the agenda unless the action is otherwise authorized by subdivision (b) of Section 54954.2 of the Government Code.

ADDITIONS TO THE AGENDA

I n accordance with section 54954.2 o f the Government Code (Brown Act), additions to the agenda require twothirds vote of the legislative body, or, if less than two-thirds of the members are present, a unanimous vote of those members present, that there is a need to take immediate action and that the need for action can be the attention of the local agency subsequent to the agenda being posted.

1. ACTION ITEMS

A. MINUTES

The Commission will be asked to approve the minutes of the December 20, 2017 Chino Basin Regional Financing Authority Commission meeting.

1

B. ELECTION OF OFFICERS It is recommended that the Commissioners elect a President, Vice President, and Secretary for the Chino Basin Regional Financing Authority

C. APPOINTMENT OF THE CHINO BASIN REGIONAL FINANCING AUTHORITY TREASURER It is recommended that the Commissioners approve the appointment Executive Manager of Finance and Administration/AGM Christina Valencia to serve as Treasurer for 2018, and appoint Manager of Finance and Accounting Javier Chagoyen-Lazaro, as the alternate Treasurer.

2. ADJOURN

CALL TO ORDER OF THE INLAND EMPIRE UTILITIES AGENCY BOARD OF DIRECTORS MEETING

FLAG SALUTE

PUBLIC COMMENT

Members of the public may address the Board on any item that is within the jurisdiction of the Board; however, no action may be taken on any item not appearing on the agenda unless the action is otherwise authorized by Subdivision (b) of Section 54954.2 of the Government Code. Those persons wishing to address the Board on any matter, whether or not it appears on the agenda, are requested to complete and subinit to the Board Secretary a "Request to Speak" form which is available on the table in the Board Room. Comments will be limited to three minutes per speaker. Thank you.

ADDITIONS TO THE AGENDA

In accordance with Section 54954.2 of the Government Code (Brown Act), additions to the agenda require two-thirds vote of the legislative body, or, if less than two-thirds of the members are present, a unanimous vote of those members present, that there is a need to take immediate action and that the need for action came to the attention of the local agency subsequent to the agenda being posted.

1. CONSENT ITEMS

NOTICE: All matters listed under the Consent Calendar are considered to be routine and noncontroversial and will be acted upon by the Board by one motion in the form listed below. There will be no separate discussion on these items prior to the time the Board votes unless any Board members, staff or the public requests specific items be discussed and/or removed from the Consent Calendar for separate action.

A. MINUTES The Board will be asked to approve the minutes from the December 6, 2017 and the December 20, 2017 Board meeting.

2

B. REPORT ON GENERAL DISBURSEMENTS Staff recommends that the Board approve the total disbursements for the month of November 2017, in the amount of $16,861,175.34.

C. FISCAL YEAR 2018/19 LEGISLATIVE POLICY PRINCIPLES (Community & Leg)

D.

Staff recommends that the Board approve the legislative policy principles for fiscal year 2018/19.

RECYCLED WATER SYSTEM CATHODIC CONSULTANT CONTRACT AWARD (Eng/Ops!WR) Staff recommends that the Board:

PROTECTION

1. Award an engineering consultant services contract for the RW System Cathodic Protection Improvements, Project No. EN17080, to Corrpro Companies Inc., for a not-to-exceed amount of $198,900; and

2. Authorize the General Manager to execute the contract subject to non-substantive changes.

E. RP-1 MIXED LIQUOR RETURN PUMPS CONSULTANT CONTRACT AMENDMENT (Eng/Ops/WR) Staff recommends that the Board:

1. Approve a contract amendment for the RP-1 Mixed Liquor Retum Pumps, Project No. EN16024, to RMC Water and Environment for a not-to-exceed amount of $95,246; and

2. Authorize the General Manager to execute the contract amendment subject to non-substantive changes.

F. RP-1 RECYCLED WATER PUMP STATION CONSULTANT CONTRACT AMENDMENT (Eng/Ops/WR) Staff recommends that the Board:

1. Approve a contract amendment for the RP-1 RW Pump Station Upgrades, Project No. EN14042, to Stantec for a not-to-exceed amount of $88,900; and

2. Authorize the General Manager to execute the contract amendment subject to non-substantive changes.

G. AGENCY-WIDE ORGANIZATIONAL MEMBERSHIPS AND AFFILIATIONS (Community & Leg) Staff recommends that the Board adopt Resolution No. 2018-1-2, authorizing the Agency-wide organizational memberships for Fiscal Year 2018/19.

3

H. SCADA PROGRAMMING MASTER SERVICES CONTRACT AWARD (Eng/Ops/WR) Staff recommends that the Board:

1. Award a three-year contract to Technical Systems, Inc., for PlantPAx programming and all associated support services required to maintain a standard controls platform for a not-toexceed total amount of $1 ,800,000; and

2. Authorize the General Manager to execute the contract subject to non-substantive changes.

2. ACTION ITEMS

A. ADOPTION OF THE IEUA ADMINISTRATIVE HANDBOOK (Board Workshop) Staff recommends that the Board adopt the updated IEUA Administrative Handbook.

3. INFORMATION ITEMS

A. ENGINEERING AND CONSTRUCTION MANAGEMENT PROJECT UPDATES CPOWERPOINT)

B. MWD UPDATE CORAL)

RECEIVE AND FILE INFORMATION ITEMS

C. TREASURER'S REPORT CWRITTEN/POWERPOINT)

OF FINANCIAL

D. PUBLIC OUTREACH AND COMMUNICATION (WRITTEN)

AFFAIRS

E. LEG·ISLATIVE REPORT FROM INNOVATIVE FEDERAL STRATEGIES (WRITTEN)

F. LEGISLATIVE REPORT FROM WEST COAST ADVISORS (WRITTEN)

G. CALIFORNIA STRATEGIES, LLC MONTHLY ACTIVITY REPORT (WRITTEN)

H. FEDERAL LEGISLATIVE TRACKING MATRIX (WRITTEN)

I. 2"d QUARTER PLANNING & ENVIRONMENTAL RESOURCES UPDATE CPOWERPOINT)

J. COMPUTERIZED. MAINTENANCE MANAGEMENT SYSTEM CCMMS) CPOWERPOINT)

4

4. AGENCY REPRESENTATIVES' REPORTS

A. SAWPA REPORT (WRITTEN) Meeting Agenda not available at time of printing.

B. MWD REPORT (WRITTEN)

C. REGIONAL SEWERAGE PROGRAM POLICY COMMITTEE REPORT The January 4, 2018 Policy Committee meeting was cancelled. The next meeting is scheduled for February 4, 2018.

D. CHINO BASIN WATERMASTER REPORT (WRITTEN) The December 28, 2017 Chino Basin Watermaster meeting was cancelled. The next meeting is scheduled for January 25, 2018.

5. GENERAL MANAGER'S REPORT (WRITTEN)

6. BOARD OF DIRECTORS' REQUESTED FUTURE AGENDA ITEMS

7. DIRECTORS' COMMENTS

A. CONFERENCE REPORTS

This is the time and place for the Members of the Board to report on prescheduled Committee/District Representative Assignment meetings, which were held since the last regular Board meeting, and/or any other items of interest.

8. CLOSED SESSION

A. PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) -

CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION 1. Chino Basin Municipal Water District vs. City of Chino, Case No.

RCV51010

2. Spicer vs. W.A. Rasic Construction, Case No. CIVDS 1711812

B. PURSUANT TO GOVERNMENT CODE SECTION 54956.9(d)(4) CONFERENCE WITH LEGAL COUNSEL· ANTICIPATED LITIGATION; INITIATION OF LITIGATION

One Case

C. PURSUANT TO GOVERNMENT CODE SECTION 54957.6 -

CONFERENCE WITH LABOR NEGOTIATONS Meet and Confer Negotiations - All Bargaining Units Negotiating Parties: General Manager Halla Razak

5

D. PURSUANT TO GOVERNMENT CODE SECTION 54954.5 - PUBLIC EMPLOYMENT

1. Manager of Internal Audit 2. Board Secretary/Office Manager

9. ADJOURN

*A Municipal Water District In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Board Secretary (909) 993-1736, 48 hours prior to the scheduled meeting so that the Agency can make reasonable arrangements.

Proofed by: �....,. Declaration of Posting

I, April Woodruff, Board Secretary/Office Manager of the Inland Empire Utilities Agency*, A Municipal Water District, hereby certify that a copy of this agenda has been posted by 5:30 p.m. at the Agency's main office, 6075 Kimball Avenue, Building A, Chino, CA on Thursday, January 11, 2018.

6

� � Cucamonga Valley® �Water District


MINUTES OF A REGULAR MEETING OF THE CUCAMONGA VALLEY WATER DISTRICT

BOARD OF DIRECTORS December 20,2017

A regular meeting of the Cucamonga Valley Water District Board of Directors was

called to order at 6:00 p.m. by President Curatalo. President Curatalo led the Pledge

of Allegiance.

In Attendance:

Board James V. Curatalo, Jr., President

Luis Cetina, Vice President

Oscar Gonzalez, Director

Randall J. Reed, Director

Kathleen J. Tiegs, Director

Staff Martin Zvirbulis, General Manager/CEO

Jeff Ferre, BB&K, Legal Counsel

Robert Abril, Water Utility Worker

Agnes Boros, Accounting Supervisor

John Bosler, Assistant General Manager/COO

Chad Brantley, Finance Manager

James Bryan, Water Utility Supervisor

Tyler Cespedes, Water Utility Worker

Frank Chu, Information Technology Manager

Cameron Collins, Lead Water Utility Worker

Carrie Corder, Assistant General Manager/CFO

Eduardo Espinoza, Design & Construction Manager

Jeff Farlow, Water Utility Worker

Kristen Farlow, Communications & Outreach Manager

Eric Grubb, Principal Management Analyst

Juan Hernandez, Water Utility Worker

Robert Hills, Water Treatment Plant Manager

Robert Kalarsarinis, Customer Service Manager

Robert Keniston, Lead Water Utility Worker

Robert Koczko, Construction & Maintenance Manager

Praseetha Krishnan, Associate Engineer

Gidti Ludesirishoti, Associate Engineer

Mike Maestas, Water Production Manager

Erin Morales, Lead Community Outreach Representative

Angelo Orioli, Customer Service Supervisor

Alafua Otine, Wastewater Utility Worker

Dave Pastor, Wastewater Utility Worker

CALL TO ORDER 6:00p.m.

Minutes - Special Board Meeting of December 20, 20 17

Page 2 of 5

Guests

Roberta Perez, Human Resources Manager

Peter Peters, Cross-Connection Coordinator

David Scott, Wastewater Utility Worker

Trevor Smith, Water Utility Worker

Shawn Spromberg, Wastewater Utility Supervisor

Tuan Truong, Associate Engineer

Taya Victorino, Executive Assistant, Board of Directors

Brenda Watson, GIS Technician

Braden Yu, Planning & Development Manager

Mark Gibboney, Customer

Ralph Lopez-Blanco, Customer

Ivan Monso, Customer

JR Rivas, Customer

ADDITIONS/DELETIONS TO THE AGENDA

None.

PUBLIC COMMENT

The following individuals provided public comment:

Mark Gibboney, 4960 Huntswood (verbal comment and written comment submitted)

Kim Earl, 7997 Janette Street

JoAnn Henkel, 6050 San Filipe

Dean (did not give last name), 9 1 70 I Rancho Cucamonga

(First name inaudible) Joy, 5700 Drexel Court

PRESENTATIONS

A) Certificates of Appreciation for Retirees Cesar Perez and Pete Peters

Mr. John Bosler gave a presentation on the tenures of Cesar Perez and Pete Peters

and thanked them for their service at the District. Mr. Perez was unavailable to

attend the meeting.

The General Manager and Board presented Mr. Peters with a certificate of

appreciation and thanked him for his forty years of dedicated service to the

community and the District.

Mr. Peters thanked the District for its support throughout the years and the

career opportunities provided to him.

ADDITIONS/

DELETIONS

PUBLIC COM MENT


Page 3 of 5

GENERAL MANAGER/CEO REPORTS

A) Mr. Martin Zvirbulis, General Manager/CEO, reported the following:

• Due to the holiday, staff requests that the Board concur with canceling

the December 26, 20 1 7 Board Meeting.

Mr. Jeff Ferre announced that with no objection from the Board to cancel the meeting,

the Board can give general direction to staff to post the notice of cancelation as

appropriate.

CONSENT CALENDAR

A)

B)

C)

D)

E)

Approve Board Calendar of Events.

Approve Cash and Investment Report for month ending November 30, 20 1 7.

Receive and File Monthly Budget Report for month ending October 3 1 , 20 1 7.

Receive and File November 20 1 7 Water Production Report.

Receive and File November 20 1 7 Water Use Efficiency Report.

On a motion by Vice President Cetina, and seconded by Director Tiegs to

approve the Consent Calendar as submitted. Passed S-0.

COMPLIANCE WITH SB 4 1 5

Mr. Eric Grubb gave a presentation on Senate Bill 4 1 5 (SB 4 1 5/ California Voter

Participation Act) and the proposed Resolution No. 20 1 7- 1 2- 1 . SB 4 1 5 requires that

any political subdivision whose past off cycle election yielded a voter turnout rate at

least 25 percent less than the average turnout for the previous four statewide

elections move its off cycle election date to the state wide general election cycle.

Since the District's last election, held November 20 1 7, yielded less than 25 percent

voter turnout, the District must adopt a resolution requesting a change to the even

number election year and submit the resolution to the County Board of Supervisors

to be in compliance with SB 4 1 5. This presentation is being given so that the Board

can consider adopting Resolution No. 20 1 7- 1 2- 1 .

Director Reed thanked those members of the public in attendance. He stated that he

shares the same concerns that they voiced tonight. He is troubled by the fact that SB

4 1 5 was passed in 20 IS and we are treating it like a new piece of legislation and he

only learned of it tonight. He believes we can do a better job and would like to have

information to do his job better as a Board Member. During public comment he

heard that there are several options that could be taken by the Board, but that is not

to say that those options will be taken. He doesn't believe we need to discuss or

question anyone's character or motivation in public because people can have a

difference of opinion and disagree without questioning each other's character. That is

how government is conducted civilly.

GENERAL

MANAGER/CEO

COM MUNICATIONS

CONSENT

CALENDAR

PASSED S-0

RESOLUTION NO.

2017-12-1' REQUESTING A

CHANGE TO EVEN

NUMBER ELECTION

YEAR CYCLE TO

COM PLY WITH S B

415

PASSED 5-0


Page 4 of 5

On a motion by Director Reed, and seconded by Vice President Cetina to

adopt Resolution No. 20 1 7- 1 2- 1 to comply with SB 4 1 5 by aligning its elections with

the statewide general election in November of even-numbered years, commencing

with the November 2020 election. Passed S-0.

CHINO BASIN WATER BANK PLANNING AUTHORITY: IOJNT POWERS

AUTHORITY AGREEMENT

Mr. John Bosler gave a presentation on the Chino Basin Water Bank (CBWB)

Planning Authority. The purpose of the CBWB is to coordinate the development of a

groundwater storage bank within the Chino Basin. CBWB parties have been working

to develop a Planning Authority Joint Powers Authority Agreement OPA Agreement)

to engage in planning activities for potential coordinated storage and recovery

programs within the Basin for local, regional and statewide benefits. A copy of the

proposed agreement is provided at the dais and public materials table for reference.

On a motion by Director Gonzalez, and seconded by Director Reed to

approve the Chino Basin Water Bank Planning Authority: Joint Powers Authority

Agreement and authorize the General Manager/CEO to execute the agreement on

behalf of the District. Passed S-0.

AUDITED FINANCIAL STATEMENTS -IUNE 30.20 1 7

Mr. Chad Brantley gave a presentation on the District's audited financiaf statements

for FY20 1 7.

On a motion by Director Tiegs, and seconded by Vice President Cetina to

receive and file the District's Financial Statements for the year ending June 30, 20 1 7

and approve the designation of Unrestricted Net Position in the various Reserve

accounts as presented. Passed S-0.

BOARD MEMBER REPORTS

Director Gonzalez

• Happy Holidays to everyone.

Director Tiegs

• Happy Holidays and Merry Christmas to everyone. Looking forward to a fruitful

20 1 8.

Director Reed

• Happy Holidays and Merry Christmas to everyone. Remember to be grateful for

the friends and family you have in your life.

• Congratulations to Pete on his retirement.

CBWB PLANNING

AUTHORITY: JOINT

POWERS

AUTHORITY

AGREEMENT

PASSED 5-0

RECEIVE AND FILE

THE DISTRICT'S

AUDITED

FINANCIAL

STATE MENTS

PASSED 5-0

BOARD MEMBER

REPORTS


Page 5 of 5

Vice President Cetina

• Congratulations to Pete and his lovely wife. Job well done and best wishes.

• A Blessed Christmas and happy, and safe New Year to everyone.

President Curatalo

• Merry Christmas, Happy Hanukah, and Happy Holidays to everyone.

ADIOURNMENT

There being no further business to come before the Board, President Curatalo

adjourned the meeting at 7: I I p.m.

ATTEST:

James V. Curatalo, Jr.

President

Martin E. Zvirbulis

Secretary/General Manager

ADJOURNED

AT 7:11p.m.



MINUTES OF A SPECIAL MEETING/LEADERSHIP WORKSHOP OF THE CUCAMONGA VALLEY WATER DlSTRICT

BOARD OF DIRECTORS January 8, 2018

A special meeting of the Cucamonga Valley Water District Board of Directors was

called to order at 6:00 p.m. by President Curatalo. President Curatalo led the Pledge

of Allegiance.

In Attendance:

Board James V. Curatalo, Jr., President

Luis Cetina, Vice President

Oscar Gonzalez, Director

Randall J. Reed, Director

Kathleen J. Tiegs, Director

Staff Martin Zvirbulis, General Manager/CEO

Guests

Cindy Cisneros, Executive Assistant, General Manager/CEO

Taya Victorino, Executive Assistant, Board of Directors

Mark Gibboney, Customer

Dr. Bill Mathis, Mathis and Associates

Janice Mathis, Mathis and Associates

PUBLIC COMMENT

The following people provided verbal comment:

Mark Gibboney, 4960 Huntswood

President Curatalo directed staff to research the resolution number discrepancy in

recently adopted Resolution No. 2017-12-1 that was mentioned during Public

Comment.

BOARD PLANNING SESSION

Mr. Martin Zvirbulis provided an overview of anticipated projects and goals staff is

working on for the coming year such as completion of Operational Goals and

Department Objectives to be presented to the Board at an upcoming workshop, the

Santa Ana River Conservation and Conjunctive Use Program (SARCCUP), Recycled

Water and other regional matters, future opportunities for water supply development,

as well as internal operations and movement based on anticipated staff retirements.

CALL TO ORDER 6:00p.m.

PUBLIC COMMENT

SUMMARY OF ITEM APPROVED

Minutes - Special Board Meeting of January 8, 20 18 Page 2 of 2

Dr. Bill Mathis informed the Board that ideas collected during the General

Manager/CEO evaluation process will be brought before the Board for discussion at a

future workshop.

Director Tiegs asked the question, "What leadership role does CVWD want to play in

the region?", and asked that it be discussed at a future workshop ..

Director Gonzalez asked that the following question also be discussed at a future

workshop, "What leadership role does each Board Member want to fulfill in the

industry and community?"

This is an information item only. No Board action was taken.

ADIOURNMENT

There being no further business to come before the Board, President Curatalo

adjourned the meeting at 7:00 p.m.

ATTEST:

James V. Curatalo, Jr.

President

Martin E. Zvirbulis

Secretary/General Manager

ADJOURNED

AT 7:00p.m.

_. _. Cucamonga Valley® ��Water District

Service Beyond Expectation BOARD OF DIRECTORS CALENDAR OF EVENTS

January 19 I SCWC Quarterly Meeting & Luncheon I I Yes No Yes I No Riverside, CA Appr Appr

I Dec. 12 Jan. 9

January 22 I ACWA Region 9 Board Meeting - Yes Highland, CA Appr

Jan. 9

January 22 ACWA Board Officers Weekly Meeting - - - I - Yes Conference Call Appr

Jan. 9 I January 22 I ASBCSD Meeting (HOSTED BY CVWD) Yes Yes Yes Yes I Yes I Yes

Rancho Cucamonga, CA Appr Appr Appr Appr Jan. 9 Jan. 9 Jan. 9 Jan. 9

January 24 I RCCC Board Meeting - - Yes Rancho Cucamonga, CA Appr.

Dec. 12

January 25 1 RCCC Business Connection Network - - Yes

Rancho Cucamonga, CA Appr Dec. 12

I I January 26 I CSDA Legislative Committee Meeting I - - - Yes -

Webinar Appr Jan. 9

* For scheduling and Board information purposes only (Please note all Committee and Board Meetings are not listed on the Calendar of Events)

� � Cucamonga Valley® �ater District Service Beyond Expectation BOARD OF DIRECTORS CALENDAR OF EVENTS

January 29 I Davenport Institute Advisory Council Meeting I Conference Call

I January 29 1 ACWA Board Officers Weekly Meeting

Conference Call

January 3 1 TVMWD Leadership Breakfast Pomona, CA

January 3 1 ACWA Federal Affairs Committee Meeting Sacramento, CA

Feb 1 I RCCC Business Connection Network Lunch Rancho Cucamonga, CA

Feb 1-2 I ACWA Board Meetings Sacramento, CA

Feb 5 I ACWA Board Officers Weekly Meeting Conference Call

* For scheduling and Board information purposes only

- I -

-

-

-

(Please note all Committee and Board Meetings are not listed on the Calendar of Events)

- I -

Yes

-

-

-

- I -

- -

Yes Appr

Jan. 9

Yes Appr·

Dec. 12

- I -

- -

I

I

Page 2 of 4 (Last Revised 0 1-18-18)

Yes Appr

Jan. 9

Yes Appr

Jan. 9

Yes Appr

Jan. 9

Yes Appr

Jan. 9

_. _. Cucamonga Valley® �ater District Service Beyond Expectation BOARD OF DIRECTORS CALENDAR OF EVENTS

Feb 8 I RCCC Business Connection Network I I -

Rancho Cucamonga, CA

Feb 9 ACWA State Legislative Committee Meeting Sacramento, CA

I Feb 12 I ACWA Board Officers Weekly Meeting -

Conference Call

Feb 15 RCCC Business Connection Network -


Feb 19 I ASBCSD Monthly Meeting TBD

Feb 20 I ACWA Board Officers Weekly Meeting -

Conference Call

Feb 22 I RCCC Business Connection Network -


I * For scheduling and Board information purposes only (Please note all Committee and Board Meetings are not listed on the Calendar of Events)

Yes -

Appr Dec. 12

- -

Yes -

Appr Dec. 12

- -

I Yes -

Appr Dec. 12

-

-

I

Page 3 of 4 Last Revised 0 1 - 1 8- 1

Yes Appr

Jan. 9

Yes Appr

Jan. 9

Yes Appr

Jan. 9

•• Cucamonga Valley® �ater District Service Beyond Expectation BOARD OF DIRECTORS CALENDAR OF EVENTS

Feb 22

Feb 26

Feb 27-March 1

Feb 28

RC Mayor's State of the City Address Rancho Cucamonga, CA

ACWA Board Officers Weekly Meeting Conference Call

ACWA DC Conference Washington D.C.

RCCC Board Meeting Rancho Cucamonga, CA

Yes Appr

Dec. 12

POST EVENT APPROVAL (BOARD CALENDAR OF EVENTS

* For scheduling and Board information purposes only (Please note all Committee and Board Meetings are not listed on the Calendar of Events)

Page 4 of 4 Revised 0 1 - 1 8- 1 8)

Yes Appr

Jan. 9

Yes Appr

Jan. 9

Yes

! ! Cucamonga Valley® �Water District


Staff Report To: From: Agenda Title:

Purpose

Date: January 23, 20 1 8 Board of Directors ! fl � � Martin E. Zvirbul is, General Manager/CEO vV'i<) Cash and Investment Report - December) I , 20 17

Government Code section 53646 states that the treasurer or chief fiscal officer may render to the legislative body of the local agency a statement of investments on a quarterly basis. The District adopted a stricter standard of reporting on a monthly basis in its Investment Pol icy which demonstrates the commitment to provide timely and transparent financial reporting.

Background/ Analysis The total unrestricted cash balance of $3 1 ,68 1 ,405 (LAIF + Cash), indicated in the report is suffic ient to meet CVWD's estimated expenditure requirements for the next six months. The book value (at h istorical cost) of unrestricted cash and investments is $93,276,2.63 of which $5,045,439 i s the amount owed to the Inland Empire Uti l ities Agency for Sewer Capital Capacity Fees col lected from developers on their behalf. The total restricted cash balance of $2,820,353 (LAI F + Cash) is composed of reserve and remaining acquis ition funds from the

· 2009 Certificates of Participation, 2009 Clean and Renewable Energy Bonds and 20 I 5 Equipment Lease.

The market value of non-cash investments held in the portfol io is subject to fluctuations due to changing market conditions. The District expects to hold investments to maturity which means these market gains or losses wil l not be real ized due to an early sale. Al l investment activity for the period and the entire investment portfo l io compl ies, in all aspects, with CVWD's Investment Pol icy as approved by the Board of Directors on February 23, 20 1 6.

Alignment with Strategic Goals Providing a detai led monthly Investment Report supports the District's values of Accountabi l ity and Communication by provid ing financial transparency of the performance and amount of the investments held.

Fiscal Impact None

Recommendation Staff recommends the Board of D irectors approve the Investment Report as presented.

Attachment: Cash and Investment Report, December 3 I , 20 1 7

Submitted by: Carrie Corder, Assistant General Manager/CFO cC/ Prepared By: Chad Brantley, Finance Manager

INVESTMENT

PORTFOLIO

RESTRICTED FUNDS

12/31/17

C UCAMONGA VALLEY WATER DISTRICT Cash and Investment Report- (SUMMARY)

For the Period Ended December 31, 2017 Restricted Funds

SUMMARY OF PORTFOLIO ASSETS

Book Adj. Market Percent of Category Value Book Value Portfolio

(historical cost) Value (market value)

Cash & Equivalents: Checking Accounts $ - $ - $ - 0.00%

Sweep Account - - - 0.00%

Money Market Account 7 1 9,996 7 1 9,996 71 9,996 25.53%

Other Cash Equivalents - - - 0.00% Total Cash & Equivalents $ 7 1 9,996 $ 7 1 9 ,996 $ 7 1 9,996 25.53%

Investments: Local Agency Investment Fund $ 2 , 1 00,357 $ 2, 1 00,357 $ 2 , 1 00,357 74.47%

Restricted Portfolio Federal Agencies - - - 0.00%

Corporate Medium-Term Notes - - - 0.00%

Negotiable COs - - - 0.00% U.S. Treasuries - - - 0.00%

Total Investments $ 2, 1 00,357 $ 2 , 1 00,357 $ 2 , 1 00,357 74.47%

Total Cash and Investments $ 2,820,353 $ 2,820,353 $ 2,820,353 100.00% Portfolio Effective Rate of Return

SUMMARY OF PORTFOLIO LIQUIDITY

Book Percent Market Percent Value of Value of

(historical cost) Portfolio Portfolio

On Demand $ 2,820,353 1 00.00% $ 2,820,353 1 00.00%

Total $ 2,820,353 100.00% $ 2,820,353 100.00%

Current Book Value Yield Yield-to-

(market value) Maturity

0.00% 0.00% 0.00% 0.00% 0.64% 0.64% 0.00% 0.00%

1 .24% 1 .24%

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1.09% 1.09%

Par Value (Predicted by Percent

call or of maturity) Portfolio

$ 2,820,353 1 00.00%

$ 2,820,353 100.00%

SUMMARY OF PORTFOLIO OWNERSHIP PORTFOLIO PERFORMANCE BENCHMARKS Book Percent

Value of Yield (historical cost) Portfolio

· District - Restricted $ 2,820,353 1 00.00% 1 YR US Treasury Rolling Average 1 .20%

2YR US Treasury Rblling Average 1 . 1 2%

3YR US Treasury Rolling Average 1 .20%

5YR US Treasury Rolling Average 1 .52%

Total Cash and Investments $ 2,820,353 100.00%

• • Cucamonga Valley® ��Water District Service Beyond Expectation

Investments

Money Market Account

Local Agency Investment Funds

Investments

Par Value

71 9,996.04

2,1 00,357 . 1 6

2,820,353.20

Total Earnings December 31 Month Ending

Current Year

-1 Balance Average Dal y

2,425.33

2,820,353.1 8

1 .0 1 %

Restricted Fund

Portfolio Management Portfolio Summary

December 31, 2017

Market Value

Book Value

7 1 9 , 996.04 7 1 9,996.04

2,100,357 . 1 6 2 , 1 00,357 . 1 6

2,820,353.20 2,820,353.20

·�a I --!6 -If?' Chad Brantley CPA',

Reporting period 1 2/01 /201 7-1 2/31/201 7

Data Updated: F U NDSNAP: 01/16/2018 11 :47 Run Date: 01/16/2018-11:48 No fiscal year history available

%of Portfolio Term

25.53 1

74.47 1

1 00.00% 1

Days to Mat./Call

1

1

1

Cucamonga Valley Water

YTM

0.643

1 .239

1 .087

Portfolio GEN2

NL! AP PM (PRF _PM1) 7.2.5

Report Ver. 7.3.1

CUSIP Investment# Issuer Average Balance


SYS10354 10354 DEUTSCHE BANK

JPM LEASE 10193 JPMorgan Chase Bank NA

9AMMF05B2 10378 US BANKCORP NTS

2009 COP AQUIS 10130 Wells Fargo Co

2009 COP RES 10131 Wells Fargo Co

2009 CREB RES 10136 Wells Fargo Co

2014 RB IMP 10312 Wells Fargo Co

Subtotal and Average 719,996.02 Local Agency Investment Funds LAIF 09 COP AQ 10133 LocaiAgencylnvestrnentFund

LAIF 09 COP RES 10134 Local Agency Investment Fund

LAIF 14 RB IMP 10311 Local Agency Investment Fund

Subtotal and Average 2,100,357.16

Total and Average

Data Updated: FUNDS NAP: 01/16/2018 11:47 Run Date: 01/1612018-11:48

2,820,353.18

Restricted Fund Portfolio Management

Portfolio Details - Investments December 31, 2017

Purchase Date Par Value Market Value

690,596.53 690,596.53

0.00 0.00

0.00 0.00

0.00 0.00

1.05 1.05

29,398.46 29,398.46

07/01/2017 0.00 0.00

719,996.04 719,996.04

0.00 0.00

2,100,357.16 2,100,357.16

0.00 0.00

2,100,357.16 2,100,357.16 2,820,353.20 2,820,353.20

Stated Book Value Rate

690,596.53 0.670

0.00 0.001

0.00 0.010

0.00 0.010

1.05 0.010

29,398.46 0.010

0.00 0.010

719,996.04

0.00 1.239

2,100,357.16 1.239

0.00 1.239

2,100,357.16 2,820,353.20

Page 1

YTM YTM Days to Maturity 360 365 Mat./Call Date

0.661 0.670

0.001 0.001

0.010 0.010

0.010 0.010

0.010 0.010

0.010 0.010

0.010 0.010 ---------

0.634 0.643

1.222 1.239

1.222 1.239

1.222 1.239 ---------

1.222 1.239 1.072 1.087

Portfolio GEN2

NL!AP PM (PRF _PM2) 7.2.5

Report Ver. 7.3.1

INVESTMENT

PORTFOLIO

UNRESTRICTED FUNDS

l 12/31/17

CUCAMONGA VALLEY WATER DISTRICT Cas� and Investment Report- (SUMMARY) For the Period Ended December 31, 2017

Unrestricted Funds

SUMMARY OF PORTFOLIO ASSETS Book Adj. Market Percent of

Category Value Book Value Portfolio (historical cost) Value (market value)

Cash & Equivalents:

Checking Accounts $ 1,205,747 $ 1,205,747 $ 1,205,747 1.30% Sweep Account 1,431,639 1,431,639 1,431,639 1.55% Money Market Account 230,532 230,532 230,532 0.25% Other Cash Equivalents. 0 0 0 0.00%

Total Cash & Equivalents $ 2,867,918 $ 2,867,918 $ 2,867,918 3.10%

Investments:

Local Agency Investment Fund $ 28,813,487 $ 28,813,487 $ 28,813,487 31.17%

CVWD Portfolio Federal Agencies 13,481,440 13,475,985 13,258,076 14.34% Corporate Medium-Term Notes 11,543,076 11,460,744 11,432,435 12.37% Negotiable CDs 9,910,000 9,909,504 9,891,706 10.70% U.S. Treasuries 24,243,913 24,105,845 23,775,805 25.72%

Municipal Bonds 695,000 695,000 696,084 0.75% Supranational 1,721,429 1,723,409 1,700,275 1.84%

Total Investments $ 90,408,345 $ 90,183,974 $ 89,567,868 96.90%

Total Cash and Investments $ 93,276,263 $ 93,051,892 $ 92,435,786 100.00% Portfolio Effective Rate of Return

SUMMARY OF PORTFOLIO LIQUIDITY

Book Percent Market Percent Value of · Value of

(historical cost) Portfolio Portfolio

On Demand $ 28,813,487 31.87% $ 28,813,487 32.17%

Within Year 2018 7,238,062 8.01% 7,239,119 8.08%

Within Year 2019 19,761,050 21.86% 19,580,468 21.86%

Within Year 2020 18,506,220 20.47% 18,153,306 20.27%

Within Year 2021 12,330,447 13.64% 12,045,160 13.45%

Within Year 2022 3,759,079 4.16% 3,736,328 4.17%

Total $ 90,408,345 100.00% $ 89,567,868 100.00%

Current Book Value Yield Yield-to-

(market value) Maturity

0.00% 0.00% 1.14% 1.14% 0.69% 0.69% 0.00% 0.00%

1.24% 1.24%

1.13% 1.09% 2.29% 1.93% 1.92% 1.93% 1.93% 1.54% 2.05% 2.05% 0.97% 0.99%

1.59% 1.44%

Par Value (Predicted by Percent

call or of maturity) Portfolio

$ 28,813,487 31.87%

7,238,062 8.01%

19,761,050 21.86%

18,506,220 20.47%

12,330,447 13.64%

3,759,079 4.16%

$ 90,408,345 100.00%

SUMMARY OF PORTFOLIO OWNERSHIP PORTFOLIO PERFORMANCE BENCHMARKS Book Percent Value of Yield

(historical cost) Portfolio

1YR US Treasury Rolling Average 1.20%

District - Unrestricted $ 88,230,824 94.59% 2YR US Treasury Rolling Average 1.12%

Amount owed to IEUA for Sewer 3YR US Treasury Rolling Average 1.20%

Capital Capacity Fees 5,045,439 5.41% 5YR US Treasury Rolling Average 1.52%

Total Cash and Investments $ 93,276,263 100.00%

� • Cucamonga Valley® Af8,.water District Service Beyond Expectation

Investments

Checking Account


Local Agency Investment Funds

Negotiable COs

Medium Term Notes

Federal Agency Bullets

Treasury Coupon Securities

CMOs Zero Day Delay

Supranational

CMOs with Delay

Municipal Bonds

Investments

Cash and Accrued Interest Accrued Interest at Purchase

Subtotal

Total Cash and Investments

Par Value

1 ,205,747.00

1 ,662, 1 7 1 .08

28,81 3,487.00

9,9 1 0,000.00

1 1 ,378,000.00

1 3, 1 55,000.00

23, 830,000.00

229,040.71

1 , 725,000.00

90, 1 23.45

695,000.00

92,693,569.24

92,693,569.24

Total Earnings December 31 Month Ending

Current Year

Average Daily Balance hRate of Retur

"� J c

Reporting period 1 2/01 /20 1 7- 1 2/31 /201 7

Data Updated: FUNDSNAP: 01/16/2018 08:21 Run Date: 01/16/2018 • 08:21

111,735.19

94,323,777.97

1 .39%

General Fund - Unrestricted

Portfolio Management

Portfolio Summary

December 31, 2017

Market Book Value Value

1 ,205,747.00 1 ,205,747.00

1 ,662, 1 7 1 .08 1 ,662,1 71 .08

28,81 3,487.00 28,81 3,487.00

9,891 ,706.40 9, 909, 504.26

1 1 ,432,434.48 1 1 ,460,744.02

1 2,939,757.00 1 3, 1 54,924.95

23,775,805.25 24, 1 0 5,844.95

228,278.00 230,035.36

1 ,700,275.00 1 ,723,408.77

90,040.54 9 1 ,024.68

696,084.20 695,000.00

92,435,785.95 93,051,892.07

40,567.46 40, 567.46

40,567.46 40,567.46

92,476,353.41 93,092,459.53

t�r6-r?r

No fiscal year history available

%of Portfolio

1 .30

1 .79

30.97

1 0.65

1 2.32

1 4. 1 4

25.91

0.25

1 .85

0. 1 0

0.75

1 00.00%

Days to Term Mat./Call

1 1

1 1

1 1

793 507

1 , 574 673

1 , 305 7 1 7

1 ,660 1 , 1 41

1 ,402 608

1 , 1 27 528

1 ,152 389

1 ,686 1 34

931 547

931 547


YTM

0.000

1 .078

1 .239

1 . 925

1 . 931

1 .088

1 .537

1 .2 1 7

0.985

1 . 1 44

2.054

1 .435

1 .435

Portfolio GEN2


Report Ver. 7.3.1

CUSIP Investment# Average

Issuer Balance

Checking Account

WELLS CKG 1 01 1 1 Wells Fargo Co

Subtotal and Average 1,070,068.61 Money Market Account AIM 62120 1 0091 AIM Investments

431 1 1 4701 1 0006 High mark Fund

625252675 1 0344 lnvesco Stit Govt & Agency

23360W52S 1 0264 Reich & Tang Daily Inco me US

WELLS SWEEP 1 01 1 2 Wells Fargo Co

Subtotal and Average 3,698,517.41 Local Agency Investment Funds LAIF GEN 1 0007 LocaiAgency lnvestmentFund

Subtotal and Average 28,136,067.65 Negotiable COs 06427KRC3 1 0429 Bank. of Montreal Chicago

06539RGM3 1 0441 Bank Tokyo-Mit UFJ NY

1 3606A5Z7 1 0424 CANADIAN IMPERIAL BANK

65556LWA6 1 0423 Nordea Bank

06417GUE6 1 0431 Bank of Nova Scotia

83050FXT3 1 0438 Skandinaviska Enskilda Banken

86563YVNO 1 0432 Su mito mo Mitsui Bank

67019U6D6 1 0443 Swedbank (New York}

691 1 3E5E2 1 0362 Toronto Do minion Bank

961 21T4A3 1 0439 Westpac Banking Corp

Subtotal and Average 9,909,478.08 Medium Term Notes

0258MOEB1 1 0401 AMERICAN EXPRESS CREDIT CORP

02665WAH4 1 0315 A merican Honda Finance

037633AJ9 1 0279 Apple Inc

06406FAB9 1 0400 Bank of New York Mellon

05531 FAV5 1 0397 Branch Banking & Trust

05531 FAV5 1 0396 Branch Banking & Trust

Data Updated: FUNDSNAP: 0 1 / 1 6/20 1 8 08:21 Run Date: 01/16/201 8 - 08:21

General Fund - Unrestricted Portfolio Management


Purchase Date Par Value Market Value Book Value

1 ,205,747.00 1 ,205,747.00 1 ,205,747.00

1,205,747.00 1,205,747.00 1,205,747.00

2.99 2.99 2.99

0.00 0.00 0.00

230,529.25 230,529.25 230,529.25

0.00 0.00 0.00

1 ,431 ,636.64 1 ,431 ,636.84 1 ,431 ,638.84

1 ,662,171.08 1,662,171.08 1,662,171.08

26,61 3,467.00 26,61 3,467.00 26,61 3,467.00

28,813,487.00 28,813,487.00 28,1!13,487 .00

02/09/2017 1 ,075,000.00 1 ,076,333.00 1 , 075,000.00

09/27/2017 500,000.00 497,660.00 500,000.00

1 2/05/2016 1 ' 1 50,000.00 1 , 147,573.50 1 ,1 49,614.41

1 2/05/2016 1 , 1 50,000.00 1 , 1 50,713.00 1 ' 150,000.00

04/06/2017 1 ,000,000.00 996,360.00 1 ,000,000.00

06/04/2017 1 ,000,000.00 995,61 0.00 999,669.65

05/04/2017 1 ,250,000.00 1 ,249, 1 50.00 1 ,250,000.00

1 1 /1 7/2017 1 ,000,000.00 994,600.00 1 , 000,000.00

03/16/201 6 1 ,000,000.00 999,990.00 1 ,000,000.00

06/07/2017 765,000.00 763,696.90 785,000.00

9,910,000.00 9,891 '706.40 9,909,504.26

05/31/2016 176,000.00 1 76,595.58 1 77,730.60

09/09/2014 900,000.00 901,350.00 699,452.50

05/03/201 3 460,000.00 456,663.60 459,664.95

05/23/201 6 575,000.00 566,01 3.75 574,561.24

05/13/201 6 275,000.00 271 ,073.00 274,929.69

05/13/2016 225,000.00 221 ,767.00 224,926.65

Stated Rate

0.01 0

0.001

0.690

0.01 0

1 . 1 40

1 .239

1 .660

2.070

1 .760

1 .760

1 .91 0

1 .840

2.050

2.270

1 .720

2.050

2.250

2.250

1 .000

2.050

2.050

2.050

Page 1 ·

YTM YTM Days to Maturity 360 365 Mat./Call Date

0.000 0.000 --- --- ---

0.000 0.000

0.01 0 0.01 0

0.001 0.001

0.661 0.690

0.01 0 0.01 0

1 .1 25 1 .140 1 --- --- ---

1.063 1.078

1 .222 1 .239 --- --- ---

1.222 1.239

1 .854 1 .860 402 02/07/2019

2.070 2.099 632 09/25/201 9

1 .775 1 .600 333 1 1 /30/201 6

1 .736 1 .760 333 1 1/30/201 6

1 .664 1 .91 0 459 04/05/201 9

1 .634 1 .860 576 06/02/2019

2.022 2.050 467 05/03/2019

2.239 2.270 1 , 050 1 1/1 6/2020

1 .696 1 .720 72 03/14/2016

2.022 2.050 945 08/03/2020 --- --- ---

1.901 1.927 507

2.267 2.298 1 ' 1 90 05/05/2021

2.259 2.290 591 06/15/2019

1 .061 1 .076 1 22 05/03/201 6

2.046 2.074 1 ,216 05/03/2021

2.030 2.056 1 ,225 05/1 0/2021

2.032 2.060 1 ,225 05/1 0/2021

Portfolio GEN2


Report Ver. 7.3.1


Medium Term Notes

084664CG4

121 89TBC7

1 66764AEO

1 7275RAR3

1 72967KS9

1 941 6QEB2

30231 GAL6

36962G4JO

38141 GVT8

38141GVT8

4581 40BB5

46625HLW8

59491 8AS3

68389XBBO

74271 8FA2

69236TCP8

94974BGR5

1 0380

1 0402

1 0282

1 0349

1 0403

1 0278

1 0329

1 0346

1 0393

1 0394

1 0436

1 0348

1 0277

1 0435

1 0442

1 0345

1 0399

Federal Agency Bullets

31 30A8QS5

3130A8Y72

31 30A9EP2

31 37EADG1

31 37EAEB1

31 37EADZ9

31 35GOZY2

31 35GOJ53

31 35GOK69

31 35GON33

31 35GOJ53

31 35GON82

31 35GON82

1 0408

1 041 1

1 0420

1 0320

1 0409

1 0414

1 0321

1 0363

1 0405

1 041 0

1 0412

1 0416

1 0417

Berkshire Hathaway

Burlin,gton North Santa Fe

Chevron Corp

CISCO SYS Inc

Citigroup

Colgate Pal molive

EXXON MOBILE CORP NOTES

General Electric

Gold man Sachs Group Inc

Gold man Sachs Group Inc

Intel Corp

JPMorgan Chase Bank NA

Microsoft Corp

Oracle Corp

The Procter & Ga mble Co

Toyota Motor Mtn

Wells Fargo Co


Federal Ho me Loan Bank



Federal Ho me Loan Mtg Corp



Federal National Mtg Assn






Federal National Mt..::g:...A_s_

s_n _____ _


Data Updated: FUNDSNAP: 0 1 / 1 6/20 1 8 08:21 Run Date: 01/16/201 8 - 08:21


Portfolio Detai ls - Investments December 31, 2017

Purchase Date

03/15/201 6

06108/201 6

06/24/2013

09/04/2015

06/09/2016

05/02/201 3

03/06/2015

07/16/2015

04/25/2016

04/26/2016

07/1 1/2017

09/04/2015

05/02/201 3

07/1 1 /2017

1 0/25/2017

07/1 3/2015

05/16/201 6

07/1 8/201 6

08/04/2016

09/29/2016

12/03/2014

07/20/2016

08/12/201 6

12/03/2014

02/23/201 6

06/29/2016

08/02/2016

08/09/201 6

08/1 9/201 6

08/19/201 6

Par Value

75,000.00

275,000.00

665,000.00

1 ,000,000.00

220, 000.00

785,000.00

570,000.00

900,000.00

75,000.00

500,000.00

500,000.00

1 , 000,000.00

250,000.00

500,000.00

380,000.00

520,000.00

550,000.00

11,378,000.00

1 ,000,000.00

1 ,450,000.00

250,000.00

575,000.00

1 ,450' 000.00

2,200,000.00

575,000.00

1 ,250,000.00

1 ,525,000.00

1 ,600,000.00

455,000.00

635,000.00

1 90,000.00

13,155,000.00

Market Value

74,757.75

286,646.25

665,000.00

1 ,001 '120.00

21 9,362.00

782,707.80

569,475.60

955,602.00

74,774.25

498,495.00

498,400.00

1 ,008,730.00

249,585.00

500,790.00

377,951 .80

519,126.40

552,227.50

11,432,434.48

966,780.00 -

1 ,426,423.00

246,1 70.00

574, 1 54.75

1 ,427,322.00

2, 1 79,870.00

573,056.50

1 ,238, 1 87.50

1 ,483,291.25

1 ,574,352.00

450,700.25

615,334.05

1 84, 1 1 5.70

12,939,757.00


74,977.09

290, 140.86

665,000.00

1 ,003,1 84.25

21 9,945.24

784,750.23

570,000.00

952,583.48

74,908.49

499,859.43

500,094.74

1 ,002,564.05

249,989.49

503,880.85

379,454.20

51 9,921.42

558,002.37

11,460,744.02

995,243.97

1 ,448,521 .72

250, 1 1 0.26

576,677.86

1 ,448,1 85.34

2,204,780.69

575,883.09

1 ,248,869.58

1 ,529,964.85

1 ,598,578.84

1 .700

4.700

1 .718

2.125

2.050

0.900

1 .305

5.500

2.000

2.000

2.350

2.750

1 .000

2.500

1 .900

1 .550

2.550

1 .125

0.875

1 .000

1 .750

0.875

1 .1 25

1 .750

1 .000

1 .250

0.875

1 .000

1 .250

YTM 360

1 .702

1 .471

1 .694

1 .817

2.040

0.984

1 .287

2.396

2.067

1 .994

2.313

2.603

0.999

2.279

1 . 926

1 .557

2.000

Page 2

YTM Days to Maturity 365 Mat./Call Date

1 .726

1 .492

1 .718

1 .842

2.068

0.998

1 .305

2.429

2.096

2.022

2.345

2.639

1 .013

2.3 1 1

1 .953

1 .579

2.028

438 03/15/2019

638 1 0/01/2019

1 74 06/24/2018

424 03/01/2019

522 06/07/2019

120 05/01/201 8

64 03/06/2018

737 01/08/2020

479 04/25/201 9

479 04/25/201 9

1 ,591 05/1 1 /2022

904 06/23/2020

120 05/01/201 8

1 ,595 05/1 5/2022

1 '026 1 0/23/2020

1 93 07/13/201 8

1 ,071 12/07/2020

1.904 1.931 673

1 .247

0.927

0.961

1 .515

0.944

0.941

1 .643

1 .065

1 .1 34

0.919

0.904

1 .3 1 6

1 .264

0.940

0.974

1 .536

0.957

0.954

1 .666

1 .080

1 .149

0.932

0.916

1 .334

1 ,290 07/14/2021

581 08/05/201 9

633 09/26/2019

514 05/30/2019

564 07/1 9/2019

469 04/15/201 9

694 1 1/26/201 9

421 02/26/2019

1 ,221 05/06/2021

578 08/02/2019

421 02/26/201 9

1 ,324 08/1 7/2021

455,448.90

633,131 .98

1 89,527.87 1 .250 �3____!E� 08/17/2021

13,154,924.95 1.073 1.088 717

Portfolio GEN2

NL!AP PM (PRF _PM2) 7.2.5

..... ... ····---·-----------------------·-----------


Treasury Coupon Securities

91 2828UQ1

91 2828UQ1

91 2828UQ1

912828VP2

91 2828W9

91 2828A42

91 2828A83

91 2828PC8

91 2828J84

91 2828WN6

91 2828072

91 2828072

91 2828G87

91 2828V72

91 2828F96

912828J76

1 0347

1 0350

1 0355

1 0361

1 0362

1 0379

1 0383

1 0396

1 0404

1 0419

1 0421

1 0422

1 0433

1 0437

1 0440

1 0444

CMOs Zero Day Delay 31 36AQOQO

Supranational 459058FK4

4581820X7

CMOs with Delay 31 36AQSW1

Municipal Bonds

9141 2GSZ9

1 0351

1 0406

1 0392

1 0359

1 0287

U.S. Treasury

U.S. Treasury

U.S. Treasury

U.S. Treasury

U.S. Treasury

U.S. Treasury

U.S. Treasury

U.S. Treasury

U.S. Treasury

U.S. Treasury

U.S. Treasury

U.S. Treasury

U.S. Treasury

U.S. Treasury

U.S. Treasury

U.S. Treasury


Federal National Mtg Assn ..:_ ____ _

Subtotal and Average 258,829.88

International Bank of Recon & Inter-A merican Develop mnt Bank


Federal National Mtg Assn -=------Subtotal and Average

University of CA

Subtotal and Average

105,691.45

695,000.00

Data Updated: FUNDSNAP: 01/16/2018 08:21 Run Date: 01/16/201 8 - 08:21



Purchase Date Par Value Market Value

443,866.50

1 ,085,007.00

2,046,717.75

1 ,652,706.00

2,009,220.00

2,001,880.00

1 ,491 ,593.75

1 ,761 ,226.50

988,280.00

1 ,996,560.00

996,720.00

1 ,868,850.00

1 ,700,340.00

1 ,261 ,752.75


1 .250

1 .250

1 .250

2.000

2.125

2.000

2.375

2.625

1 .375

2.000

2.000

2.000

2. 1 25

1 .875

2.000

YTM 360

1 .435

1 .293

1 .530

1 .578

1 .723

1 .419

1 .237

1 .1 95

1 .01 0

1 .181

1 .1 99

1 .907

1 .748

1 .879

1 .622

Page 3

YTM Days to Maturity 365 MatJCall Date

1 .455

1 .3 1 1

1 .551

1 .600

1 .747

1 .439

1 .254

1 .212

1 .024

1 .1 98

1 .216

1 . 934

1 .772

1 .905

1 . 644

789 02/29/2020

789 02/29/2020

789 02/29/2020

942 07/31 /2020

973 08/31/2020

1 '064 1 1/30/2020

1 , 095 1 2/31/2020

1 ,049 1 1/15/2020

820 03/31/2020

1 ,246 05/31/2021

1 ,338 08/31/2021

1 ,338 08/31 /2021

1 ,460 1 2/31/2021

1 ,491 01/31/2022

1 ,399 1 0/31/2021

09/03/201 5

1 0/09/2015

1 1 /09/2015

1 2/04/2015

1 2/30/201 5

03/09/2016

03/31/2016

05/06/2016

06/27/2016

09/06/201 6

1 0/05/201 6

1 2/05/2016

06/29/2017

07/1 1/2017

08/31/2017

1 1/30/201 7

450,000.00

1 '1 00,000.00

2,075,000.00

1 , 650,000.00

2,000,000.00

2,000,000.00

1 ,475,000.00

1 ,730,000.00

1 ,000,000.00

2,000,000.00

1 ,000,000.00

1 ,875,000.00

1 ,700,000.00

1 ,275,000.00

1 ,000,000.00

1 ,500,000.00

995,700.00

1 ,475,385.00

448,080.31

1 ,098,605.01

2,061 ,990.03

1 ,666,347.68

2,019,248.97

2,031 ,478.72

1 ,522,935.94

1 ,798,060.74

1 ,007,698.70

2,053,065.87

1 ,027,781 .62

1 ,879,305.12

1 ,722,912.98

1 ,273,483.60

1 ,013, 1 05.57

1 ,481 ,744.09 1 .750 �3�� 03/31 /2022

1 0/30/201 5

07/13/201 6

04/1 2/201 6

1 1 /30/201 5

1 0/02/201 3

23,830,000.00

229,040.71

229,040.71

575,000.00

1 '1 50,000.00

1,725,000.00

90,1 23.45

90,123.45

695,000.00

695,000.00

23,775,805.25 24,105,844.95

228,278.00 230,035.36

228,278.00 230,035.36

564,845.50 574,936.58

1 , 1 35,429.50 1 ' 148,472.1 9

1,700,275.00 1,723,408.77

90,040.54 91 ,024.68 -----'----90,040.54 91,024.68

696,084.20 695,000.00

696,084.20 695,000.00

1 .646

0.875

1 .000

1 .898

2.054

1.516 1.537 1,141

1 .21 7 1 .234

1.217 1.234

0.747 0.758

1 .084 1 .099

0.972 0.985

1 .1 29 1 . 144

1.129 1.144

2.026 2.054

2.026 2.054

608 09/01/2019

608

591 08/15/201 9

497 05/13/2019

528

389 01 /25/201 9

389

1 34 05/151201 8

134

Portfolio GEN2


CUSIP Investment# Issuer

Total and Average

Data Updated: FUNDSNAP: 01/16/201 8 08:21 Run Date: 01/1 6/201 8 - 08:21

Average Balance

94,323,777.97


Portfolio Details - I nvestments December 31, 2017

Purchase Date Par Value

92,693,569.24 Market Value

92,435,785.95


93,051,892.07

Page 4

YTM 360

YTM Days to 365 MatJCall

1.416 1.436 547

Portfolio GEN2


INVESTMENT

PORTFOLIO

SUPPLEMENTAL REPORTS

UNRESTRICTED FUNDS

12/31/17

� � Cucamonga Valley® J!!8_water District Service Beyond Expectation

CUSIP Investment # Fund

09/01 /201 9

31 36AQDQO 1 0351 1 00

Data Updated: -REPORT-: 0 1 /16/2018 09: 1 5 Run Date: 01/16/201 8 -09: 1 5

Issuer

sec-:-fylie

FNMA

MC4

General Fund - Unrestricted

Sales/Call Report Sorted by Maturity Date - Fund

December 1 , 2017 - December 31, 2017

Purchase Redem. Date Par Rate at Book Value Date Matur:- D

-ate Value Redem. at Redem.

1 0/30/20 1 5 1 2/26/2017 35, 5 1 5 . 97 1 .646 35,671 .72

09/0 1 /201 9

Subtotal 35,515.97 35,671.72

Total Sales 35,51 5.97 35,671.72

Redemption Redemption

Principal Interest

35,51 5.97 42.22

35,515.97 42.22

35,515.97 42.22


Total

Amount

35,558. 1 9

Sale

35,558 .19

35,558.1 9

Net Income

-1 1 3.53

-1 13.53

-1 1 3.53

Portfolio GEN2

NL! AP SA (PRF _SA) 7.1 . 1

Report Ver. 7.3.1

INVESTMENT

PORTFOLIO.

SUPPLEMENTAL INFORMATION

UNRESTRICTED FUNDS

12/31/17

. , Investment Type Checking $ Sweep & Money Market

LAI F

Federal Agencies

U . S . Treasuries

Municipal Bonds

Corp Medium Term Notes

Negotiable COs

S u p ranational

Total Portfolio $

$ 100

$80

1/) $60 s:: 0

:z

$40

$20

$-

C U CAMO N GA VALLEY WATER D ISTRICT

Investment Pol icy Compliance Report

For the Period Ended December 31 , 201 7

U nrestricted Funds

Book Value Market Value CVWD Policy Limit ' Description of Limit

1,205,747 $ 1 ,205,747 N/A None

1 ,662,171 1 ,662,171 $ 18,487,157 Up to 20% of portfol io

28,813,487 28,813,487 65,000,000 Up to $65 Mil l ion

13,481 ,440 13,258,076 92,435,786 Up to 100% of portfol io

24,243,913 23,775,805 92,435,786 U p to 100% of portfol io

695,000 696 ,084 27,730,736 U p to 30% of portfolio

11 ,543,076 11,432,435 27,730,736 Up to 30% of portfol io with 5 year maturity max

9,910 ,000 9,891 ,706 27,730,736 U p to 30% of portfol io with 5 year maturity max

1,721 ,429 1 ,700,275 27,730 ,736 Up to 30% of portfolio with 5 year maturity max

93,276,263 $ 92,435,786

Portfol io Balances vs. CVWD I nvestment Pol icy L i mits By Investment Type

786 786

$65,000,000

$27,730,736 $27'730'736 $27,730,736 $27•730•

Checking Sweep & M LA!F oney M arket

• Book Value !'J Market Value - CVWD Policy Limit

Investment Tme 1 2/31/201 1 6/30/2012 12/31/2012

Total Unrestricted Portfolio (Par Value) $ 65,314,800 $ 70,338,762 $ 72,794,860

Total Unrestricted Portfolio {Market Value) 65,431 ,700 70,554,050 73,015,282

Total Unrestricted Cash 42,937,109 34,366,381 27,981,306

Total Unrestricted Bond Portfolio 22.377,690 35,972,381 44,813,554

Total Restricted Cash 1 5,690,826 1 4,562,959 55,443,225

Total Unrestricted Portfolio Yield 0.95% 0.89% 0.81%

CUCAMONGA VALLEY WATER DISTRICT H istory of Portfolio Balances

Fiscal Year 2017

6130/2013 12131/201 3 6/30/2014 12/3112014

$ 79,755,426 $ 80,1 02,483 $ 86,014,128 $ 81 ,908,453

79,384,809 79,811 ,493 86,235,675 82,055,362

34.250,738 34,459,806 40,327,129 35,985.453

45,504,688 45,642.677 45,687,000 45,923,000

5 1 , 5 1 1 ,848 39,378,1 1 9 1 9,680,470 1 8,384,1 8 1

0.64% 0.67% 0.63% 0.75%

6130/2015 12/31/2015 6/30/2016 12/31/2016 6/30/20 1 7 12/31/2017

$ 81 .020,789 $ 92,469.280 $ 98,913,977 $ 86,877.228 $ 95,254.453 $ 92.693,569

81 ,288,476 92.281,085 100,1 96,822 86,947,347 95.444,128 92,435,786

31 ,209,789 38,863.41 7 40,734,977 27,601.228 36,273,951 31 ,681 ,405

49,811 ,000 53,605,863 58,1 79,000 59,276.000 58,980,502 61 ,012,164

12,027,1 1 5 16,641,851 35,854,904 6,936,748 4,068,712 2,820,353

0.84% 0.91% 1 .06% 1.20% 1 .28% 1 .44%

CUCAMONGA VALLEY WATER DISTRICT I 6-Year History

Porfolio Bala nces and I nvestment Yields

$120,000,000

$100,000,000

$80,000,000

5.00%

4.50% - 1 .. �

------------------{ · -

$60,000,000 -1

1 3 00%

� 2 50% -

.. . � r ,-

$40,000,000

$20,000,000

" _.,c, � · � """" I I , _,- r "' __.-- ----

r "� � 1.00%

- - -- - -- -� - - - - - - - � - - - - - - - -· --- - -0.50%

$-12/31/2011 6/30/2012 12/31/2012

-r-----,--------.-----.--------�-------r----�----�-----�----�--� 0.0�/o 6/30/2013 12/31/2013 6/30/2014 12/31/2014 6/30/2015 12/31/2015 6/30/2016 12/31/2016 6/30/2017 12/31/2017

---Total Unrestricted Portfolio (Par Value)

�Total Unrestricted Bond Portfolio

--Total Unrestricted Portfolio (Market Value)

---Total Restricted Cash

....,._Total Unrestricted Cash

-e- Total Unrestricted Portfolio Yield

I

Percentage 0 0 0 0 0 _.. _.. _.. __,_ _. N 0 N � 6 Oo 0 r.v � 6 Oo 0 0 0 0 0 0 0 0 0 0 0 0

12/2012 2/2013 4/2013 6/2013 8/2013 � I ( I I �

1 0/201 3 I I 12/201 3

I II \

I I I

2/201 4 I I I ;I

< 4/201 4 j I I : '

( 6/201 4 \

\ ' ' 8/2014 I I I \

I \ I 10/2014 I I I \ ) I 1 2/2014 I \ I ' (f) ,......

0 2/201 5 I \ I ' � 1 \ -<

'I 0 -4/201 5 I \ I l I \ I \ I � 6/2015 I \I I \ \ I \

0,) . ., ;1\

8/2015 I 1\ ' \ \ I ' CD \ ,...... I ::u

10/2015 I I \ ' I \ I \ I 0,) I ,......

CD 1 2/2015 I I '\. ' \ I 1\ \ (f)

I 2/201 6 I I \.I ' 1\ I \ \ ' 4/201 6 I 1 \. ' I \ I \ t .... I I I I I I \ I

I \ ' I \ \ . . 6/2016 I I () C.Tl (...) N _.... r I I I I )> < -< -< -< -< 8/2016 I I I \ � \ ' I \ � ...., ..., ...., ...., -n 0 c c c c I (f) (f) (f) (f) 10/2016 I I I '\ I \ \ \ I I -I -I -I -I

.... ::0 ::0 ::0 ::0 1212o1 6 1 I I 1\ ' \ I \I .... 0 0 0 0 ( ::J ::J ::J ::J 2120 1 1 1 I I 1 \ ' 1\ 1\ (.Q (.Q (.Q (.Q

)> )> )> )> 4/2017 I I I '\.. I \., I \ I \ \ I I < < < < CD CD CD CD ...., ...., ...., ...., OJ OJ OJ OJ 6/2017 J I I I "'\ r , \ I ' , _ \1 (.Q (.Q (.Q (.Q

CD CD CD CD 8/201 7

10/201 7 12/2017

1,400,000

i ,200,000

1 , 000,000

800, 000

600,000

400, 000

200, 000

Analysis of Investment Porfolio Performance Interest Income - Actual vs Budget

For the Period E nded December 31, 2017

All Funds

D Budget

.__ D Prorated Budget

1 , 3 12,000

• Actual - ----- ________ _ ------------ 1---- --- --

------------- - --1 , 0 16,700 -��--- 1--11-

659,544

• .

656,000 -

� �I

----

[

" � 508,350 r------l .... , _--._, ... _...,...:;.. .. -- ---,...... - • � ·""'""" 0 • _, ... � --� _............... •

• • '

---�-...___, __ ,.;..._ 468,270

-

. --

J ., . 'I

' ' -.. - •- .. -:·-'- . �---

' • 273,400

•

--·-·

-' ' - - - - -- 1 61 ,389 -

.

1 0,950 2 1.900 29,885 I I

Restricted Fu nds

1 36,700 •

. " � -',. � . � - -� �

LAIF Bonds Totals

- ... _ .

! ! Cucamonga Valley® ��ater District


STAFF REPORT To: From: Agenda Title:

Purpose

Date: January 23 , 20 1 8 Board of Directors � 1\r-../ Martin E. Zvi rbul is , General Manager/CEO JV \0 Monthly Budget Report - I 1 /30/20 1 7

Staff has prepared income statements for the Water Fund, Frontier Project Bui ld ing Fund, Sewer Fund, and Recycled Water Fund, comparing actual results to the prorated budget to help the Board evaluate the District's financial performance. The Frontier Project Bui ld ing Fund is presented both independently and combined with the Water Fund. The amounts represented in the reports have been reviewed and adjusted by staff in accordance with general ly accepted accounting principles. Amounts reported are compiled before the annual audit and are intended to be used as an estimate only.

Bacl<ground/ Analysis · The data represented in the report reflects the resu lts of operations for the five-month period ended November 30, 20 1 7. The District continues to focus on operating within its overal l budget objectives for each of the operating and capital funds. Total Water Fund revenues are about even with the prorated budget for the period whi le expenses are 2% above the budget for the period.

Water Sales are I % above the prorated budget due to h igher than expected water consumption. · Consumption forecasts ind icated that 20,758 acre feet would be sold through November. However, 2 1 ,060 acre feet have been sold, which is 1 .5% above the forecast.

The Source of Supply expense category is I % above the prorated budget, with forecasted water purchased of 1 7,34 1 acre feet budgeted as compared to 1 8, I 06 acre feet actual . The Pumping expense category is I I 0% above the prorated budget due to the cost of electricity used by

. booster pumps to move treated water with in the system. Overall groundwater production was budgeted to be 3,024 acre feet as compared to 3 ,555 acre feet actual .

The Frontier Project Bui ld ing Fund expenses are 28% under the prorated budget due to lower than expected outs ide service costs. Revenues are about I % under the prorated budget.

Sewer Fund revenues are I % above the prorated budget and corresponding sewer expenses are I % under the forecasts for the period. Recycled water revenues are recognized at 23% above the prorated budget whi le corresponding recycled water expenses are 8% under forecasts for the period.

There are no other signifi cant events to report to the Board for the period. The Net Income for the period is being recognized at 8% under the prorated budget for the Water Funds, 50% above for the Sewer Fund, and 1 80% above for the Recycled Water Fund.

January 23, 20 1 8 Monthly Budget Report -November 30, 20 1 7 Page 2

Alignment with Strategic Goals Approval of the Monthly Budget Report aligns with the CVWD core value of accountability by highl ighting the efforts the District makes to maintain financial transparency and practice good stewardship of financial resources.

Fiscal I mpact There is no fiscal impact

Recommendation It is recommended that the Board review and approve the information provided.

Attachment: Monthly Budget Report - November 30, 20 1 7

Submitted by: Carrie Corder, Assistant General Manager/CFOc.£1 Prepared By: Chad Brantley, Finance Manager

C u camonga Va l l ey® Wate r D i st r i ct


Month ly Budget Report

For the 5 Months End ing November 30, 20 1 7

Prepared by the Accounti ng Division

CUCAMONGA VALLEY WATER DISTRICT

YTD Revenue and Expense Activity

For the Five Months Ended November 30, 201 7

UNAUDITED

Water Fund - CVWD

Variance vs Prorated Budget

Prorated Favorable Bud�et Bud�et Actual �Unfavorable)

Operating Revenues Water Sales $45,960,921 21 ,888,202 $22, 193, 1 1 3 $304,912 Meter Charges 19,840,262 8,266,775 8,1 14,853 ( 151 ,922) Water Services 1 ,229,458 512,274 533,636 21 ,362 Sales to Others 5,236,740 139,650 152,122 12,472 Sales to Fontana WC 720,771 300,320 (300,320)

TOTAL OPERATING REVENUES 72,988, 152 31 , 107,221 30,993,724 (1 1 3,497)

Operating Expenses 510 - Source of Supply 24,973, 1 1 7 14,058, 156 14 ,179, 166 ( 121 ,010) 520 - Pumping Operations 3,81 3,548 1 ,01 1 ,053 2,127,000 (1 , 1 1 5,947) 530 - Water Treatment �.477,423 2,282,260 2,307,035 (24,775) 540 - Transmission and Distribution 3,935,767 1 ,639,903 1 ,507,893 1 32,01 0 550 - Customer Accounts 2,409,464 1 ,003,940 891 ,327 1 12,61 3 560 - General and Administrative 1 1 ,466,435 4,777,674 4,21 5,787 561 ,887

TOTAL OPERATING EXPENSES 52,075,754 24,772,985 25,228,208 (455,223)

NET OPERATING INCOME (LOSS) 20,91 2,398 6,334,235 5,765,51 6 (568,71 9)

Nonoperating Revenues Investment Income (Unrestricted Funds) 967,700 403,205 377, 103 (26, 1 02) Other N onoperating Revenues 1 ,030,034 429, 181 437,987 8,806

TOTAL NONOPERATI�G REVENUES 1 ,997,734 832,386 815,090 (17,296)

NET INCOME (LOSS) $22,91 0, 1 32 $7, 166,621 $6,580,606 ($586,01 5i

Page 1

% Variance

1% (2%) 4% 9%

(100%)

(0%)

( 1%) (1 1 0%)

( 1%) 8%

1 1% 12%

(2%)

(9%)

(6%) 2%

(2%)

(8%i




UNAUDITED

Water Fund - Frontier Project Building


Prorated Favorable Budget Budget Actual (Unfavorable)

Operating Expenses

560 - General and Administrative $1 1 1 ,900 $46,625 $33,639 $12,986

TOTAL OPERATING EXPENSES 1 1 1 ,900 46,625 33,639 1 2,986

NET OPERATING INCOME (LOSS) (1 1 1 ,900) {46,625} {33,639} 1 2,986

Nonoperating Revenues

Other Nonoperating Revenues 89,079 36,992 36,467 (525)

TOTAL NONOPERATING REVENUES 89,079 36,992 36,467 {525}

NET INCOME (LOSS) {22,821} {9,633} 2,828 $1 2,461

Page 2

% Variance

28%

28%

28%

( 1 %) I "

{1 %} � i !

1 29% l l I




UNAUDITED

Water Fund - Total


Prorated Favorable % Budget Budget Actual {Unfavorable} Variance

Operating Revenues

Water Sales $45,960,921 $21 ,888,202 $22,1 93,1 1 3 $304,91 2 1 %

Meter Charges 1 9,840,262 8,266,775 8, 1 14,853 ( 151 ,922) (2%)

Water Services 1 ,229,458 512,274 533,636 2 1 ,362 4%

Sales to Others 5,236,740 1 39,650 1 52, 1 22 1 2,472 9%

Sales to Fontana WC 720,771 300,320 (300,320) ( 100%)

TOTAL OPERATING REVENUES 72,988,1 52 31 , 1 07,221 30,993,724 (1 1 3,497) (0%)

Operating Expenses

51 0 - Source of Supply 24,973, 1 1 7 1 4,058,156 14, 1 79, 1 66 (1 21 ,01 0) ( 1 %)

520 - Pumping Operations 3,81 3,548 1 ,01 1 ,053 2,1 27,000 (1 ' 1 1 5,947) (1 1 0%)

530 - Water Treatment 5,477,423 2,282,260 2,307,035 (24,775) (1 %)

540 - Transmission and Distribution 3,935,767 1 ,639,903 1 ,507,893 1 32,01 0 8%

550 - Customer Accounts 2,409,464 1 ,003,940 891 ,327 1 1 2,61 3 1 1 %

560 - General and Administrative 1 1 ,578,335 4,824,299 4,249,426 574,873 1 2%

TOTALOPERATING EXPENSES 52,1 87,654 24,81 9,61 0 25,261 ,847 (442,237) (2%)

NET OPERATING INCOME (LOSS) 20,800,498 6,287,61 0 5,731 ,877 (555,733) (9%)


Investment Income (Unrestricted Funds) 967,700 403,205 377, 1 03 (26,1 02) (6%)

Other Nonoperating Revenues 1 ' 1 1 9, 1 1 3 466, 1 73 474,454 8,281 2%

TOTAL NONOPERATING REVENUES 2,086,81 3 869,378 851 ,557 (1 7,821) (2%)

NET INCOME (LOSS) $22,887,31 1 $7,1 56,988 $6,583,434 {$573,554} {8%}

Page 3

CUCAMONGA VALLEY WATER D ISTRICT


For the Five Months Ended November 30, 20 1 7

UNAUDITED

Sewer Fund


Amended Prorated Favorable % Budget Budget Actual (Unfavorable) Variance

Operating Revenues

Sewer Services $19,458,983 $8,098,1 26 $8,1 67,001 $68,875 1 %

Pretreatment Services 53,546 22,3 1 1 39,550 1 7,239 77%

TOTAL OPERATING REVENUES 1 9,51 2,529 8,1 20,436 8,206,551 86,1 1 5 1 %

Operating Expenses

540 - Transmission and Distribution 72,343 30, 1 43 30,448 (305) ( 1%)

550 - Customer Accounts 420,425 1 75, 1 77 1 54,524 20,653 1 2%

560 - General and Administrative 2 , 1 37,823 890,760 796,942 93,818 1 1 %

580 - Collection and Transmission 16 ,373,41 2 6,81 4,795 6,833,970 ( 19 , 175) (0%)

TOTAL OPERATING EXPENSES 1 9,004,003 7,91 0,875 7,81 5 ,884 94,991 1 %

NET OPERATING INCOME (LOSS) 508,526 209,562 390,667 1 8 1 , 1 05 86%


Investment Income (Unrestricted Funds) 322,400 1 34,330 1 25,701 (8,629) (6%)

Other Nonoperating Revenues 0%

TOTAL NONOPERATING REVENUES 322,400 1 34,330 1 25,701 (8,629) (6%)

NET INCOME (LOSS) $830,926 $343,892 $51 6,368 $1 72,476 50%

Page 4



For the Five Months Ended November 30, 20 1 7

UNAUDITED

Recycled Water Fund


Amended Prorated Favorable % Budget Budget Actual (Unfavorable} Variance

Operating Revenues

Recycled Water Sales $1 ,061 ,245 $531 ,61 9 $653,927 $1 22,308 23%

Recycled Water Services 500 208 1 08 (1 00) (48%)

TOTAL OPERATING REVENUES 1 ,061 ,745 531 ,827 654,035 1 22,208 23%

Operating Expenses

51 0 - Source of•Supply 577,987 298,268 293,703 4,565 2%

540 - Transmission and Distribution 1 0,000 4 , 167 1 03 4,064 98%

550 - Customer Accounts 1 1 ,256 4 ,690 1 ,1 73 3,51 7 75%

560 - General and Administrative 327,987 1 36,661 1 1 2,289 24,372 1 8%

TOTAL OPERATING EXPENSES 927,230 443,786 407,268 36,518 8%

NET OPERATING INCOME (LOSS) 1 34,515 88,041 246,767 1 58,726 1 80%


Investment Income (Unrestricted Funds) 0%

TOTAL NONOPERATING REVENUES 0%

NET INCOME (LOSS) $1 34,51 5 $88,041 $246,767 $1 58,726 1 80%

Page 5

• Budget YTD RActua l YTD Water Sales Year-to-Date (AF) * 1 . 5% over bu dget

�� ;l-aCJ

45,000 o,CJ ,�;;!.l

40,000 s 3as ., ,

35,000 '\. "�"'

'D ,.,a ., ,

30,000 , a.,s " '

a 'Do 1: •

25,000 0 1s'D a<>a 1"> · 1: ' 1'�-•

20,000 >.l .'�>�0'1.1 �o,'l.

� 0al ""'"' '\. ' ).0• 15,000 10,000

5,000

�.:.. <} rf e-' * e-' � .. � �..), <S �� '/).:.. ') � � (p rf � �,., '?-q <::-<2-

'?-" ot:' � e:-" ,v \" ,_e- ,_e- (,<2- \'0 '<� c.,<l-q ""'0 ()e-

8 Budget YTD • Actual YTD Imported Water Production (AF) * 4% over bu dget

30,000 1'�> ,aaa

s �Cjl " '

25,000 '\. '1.3'1.

).'\.� 1.,,aCJl

1a :J-�3 11,

>.'D ,'\.a<> >.CJ :J-"a 1: •

20,000 '\.

15,000 ).'\.,<>1�'\. .�'1.3

CJCJS 10,000 l ' l :;1�

5,000

�..), <} e-'- rf * rf '/)<A i" <S �� '/)..), ') � �'<;> (p e-' �'<;> <::-<2-

'?-" ot:' �'<;> e:-" �.-;:,: �� '?-q \" ,_e- ,_e- (,e- \'I> '<� c.,<Z-q ""'0 ()e-

Page 7

• Budget YTD • Actua l YTD

16,000

14,000

12,000

10,000

8,000

6,000

,_po 4,000

2,000

\.$-� <,'-�" '?-.;:;

II Budget YTD • Actual YTD

1,400

1, 200

1,000

800

600

400

200

«) � ,.__<& c.,e'< <&\ CP

o""

Groundwater Production (AF) * 18% over bu dget

..,_o.,'�-""

..,_,_;).") ..,_a ,sro1

'D,'�-1'

E>,o.1'>

�.o,9'�-

* «) 1-� ,_0 �� <&\ � ;s �,_-'>.. "<& (:''<) "" �.;:; �1- '?-'< \.;:;

,.<& c,<& \"' '<� ""'0 Qe

Recycled Water Production (AF) * 13% over bu dget

Page 8


DECEMBER 20 1 7

MONTHLY WATER PRODUCTION R EPORT

Cucamonga Valley Water District 1 0440 Ashford Street

Rancho Cucamonga, CA 9 1 730

Prepared by Braden Yu and Mike Maestas

TABLE OF CONTENTS

MONTHLY WATER PRODUCTION BY SOURCE SUMMARY . . . • . . . . . . . . • . . . . . . . . • . • . • . . 1

MONTHLY WATER PRODUCTION BY SOU RCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

IMPORTED WATER PRODUCTION • • • . • • . • • • . • . • . • • . • . . . . . . . . • . • • . • . . • . . . . • . . . • . . . • . • . . . . . . 3

CUCAMONGA BASIN WELL PRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

CHINO BASIN WELL PRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

CANYON WATER PRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

RECYCLED WATER PRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

RAINFALL SUMMARY • . . • • . • • • • • • . . • • • . • • • • • • • . • • • • • • • • • • • • • • . • • • • • • . . . . . . • . . . • • . . . . • . . . . • • • • . 8

POWER GENERATION SUMMARY . . • . . • . . . • • • • • . . . • . • • • • • • • • • . • • • • • • • • • . . • • . • • • . • • • • • • • . • . 9

CUCAMONGA VALLEY WATER DISTRICT MONTHLY WATER PRODUCTION REPORT

FOR DECEMBER 20 1 7

Imported Water 1 ,98 1 .5 AF

5 3.0%

WATER PRODUCTION BY SOURCE FOR DECEMBE R 20 1 7

Recycled Water 1 63. 1 AF

4.4%

Interconnection ------: O.O AF / 0.0%

Canyon Water 2 1 7. 2 AF

5.8%

Groundwater 707.6 AF

1 8.9%

Chino Basin

\---- Groundwater 671 .4 AF

1 7.9%

MONTH PROD UCTION 3,740.7 A F

1 2 MONTH WATER P RODUCTION BY SOU RCE E N DING DE CEMBE R 20 1 7

Imported Water ------::::;;;iii 28,767.7 AF

62.0%

Recycled Water 1 , 1 8 1 .8 AF

2.5%

Interconnection 47.9 AF

0. 1 %

�Cooyoo Wo•e< 3,308.2 AF

7. 1 %

DECEMBER 20 1 7 WATER USE

8.2 o/o INCREASE

1

Cucamonga Basin Groundwater

6,866.8 AF 1 4.8%

Chino Basin -- Groundwater

6, 1 99.9 AF 1 3.4%

1 2-MO P R ODUCTION 46,372.3 A F

WATER USE SINCE J U N E 1 , 20 1 5

1 9.8 °/o R E DUCTION

FOR DECEMBER 201 7

MONTHLY WATER PRODUCTION BY SOURCE 1 0,000

9,000

8,000

7,000 u::-<{ 6,000 � t:: 0

5,000 ·.;: u :I

"C 4,000 e a..

3,000

2,000

1 ,000

0

1'-. I(") ·- 0 � (X)? '< N •

_ N· � � -- 1(") _/ r--.2 �-\:" �-/ v '�

- I ., -{) 1'-. 1'-. 1'-. � � � � 0 0 0 0 N N N N u c .n 0 QJ 0 QJ 0 � u.. ::E

I(") -{) N (X) M M -- 0 - l.(') ... _ ...-... -- '< -- �

N � �- ......--- I(") -- :::l � � N -- '<-� - � �

�- / "�ill ........._ " -- R_ -- �- -

- � M M

.__

/ " -1'-. 1'-. 1'-. 1'-. 1'-. 1'-. 1'-. 1'-. 1'-. � � � � � � � � �

0 0 0 0 0 0 0 0 0 N N N N N N N N N 0.. >- c :; rn a. u > u

0 :::> � :::> QJ 0 0 QJ <( ::E � <( VJ z 0

Month

- Imported Water - Groundwater - Canyon Water Inter-connection

- Recycled Water -+- Total Production - 20 1 3 P roduction -+- Rainfa l l

50

45

40

35

30 � 25 0 ....

c 20 ·a 0::

1 5

1 0

5

0

Water Producti o n (AF) Previous Year

Source Dec 2 0 1 7 1 2-mo YTD FYTD Dec 20 1 6

Groundwater

Chino Basin Wells 67 1 .350 6 , 1 99.900 6, 1 99.900 1 ,786.520 564.740

Cucamonga Basin Wells 707.590 6,866.8 1 0 6,866.8 1 0 3, 1 47.350 733.490 Subtotal 1 , 378.940 1 3,066.7 1 0 1 3,066.7 1 0 4,933.870 1 ,298.230

Ca nyon Water

Cucamonga Canyon (AHBWTP) 69.8 1 2 93 1 .530 93 1 .530 4 1 2.956 24.407

Deer Canyon ( Res 8B) 3.4 1 0 1 7.690 1 7.690 1 0. 1 70 0.000

Day & East Canyon ( LWMWTP) 1 44.0 1 0 2,358.960 2,358.960 735.830 52.340 Su btotal 2 1 7.232 3,308. 1 80 3,308. 1 80 1 , 1 58.956 76.747

lmeorted Water

CB7 ( RNWTP) 0.000 0.000 0.000 0.000 0.000

CB 1 6 ( LWMWTP) 1 ,98 1 .495 28,767.682 28,767.682 20,087. 1 45 1 , 1 09.208

Subtotal 1 ,98 1 .495 28,767.682 28,767.682 20,087. 1 45 1 , 1 09.208

Interconnecti o n (purchases/sales) -0.007 47.853 47.853 -0.457 -33.950

Recycled Water 1 63.070 1 , 1 8 1 .830 1 , 1 8 1 .830 788.623 39.420

Total Productio n 3,740.730 46,372.255 46,372.255 26,968 . 1 37 2,489.655

Total Potable Production 3,577.660 45, 1 90.425 45, 1 90.425 26, 1 79.5 1 4 2,450.235

Rainfa l l ( in) 0.0 27.4 27.4 0.7 4.8

2

FOR DECEMBER 201 7

IMPORTED WATER PRODUCTION 40,000 .,....---------------------------------'!r 40,000

35,000 �1-------------------------------- � - 35,000

-{) ,..._ R_ �-

3o,ooo �1--------------------------- � -- � -- 3o,ooo --------------------------">0· - · - ·� �-

� 25,000 ��------------------------� t:: 0 ''5 20,000 �1---------------------� M

� 0 0 ri: 1 5,000 �1------------------co

Lt) -{)

"-N

o co' 1 o,ooo 11---------- f;; -- �- -- �t�C------------------Ir 1 o,ooo

,..._ "-5,000

,..._ ,..._ ,..._ ,..._ ,..._ ,..._ ,..._ ,..._ ,..._ ,..._ ,..._ ,..._ - - - - - - - - - - - -0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N N N c: ..0 0 D._ >- c: � 0 <ll 0 -=: -, LL ::E <t ::E

0> a. ti > u :::> <ll 0 0 <ll <t V) z 0

Mo nth

- Monthly Production _.,_ Cumulative Production -Tier 1 Limit (28,368.500 AF)

Water Production (AF) Previous Year

Imported Water Dec 20 1 7 1 2-mo YTD FYTD Dec 20 1 6

CB7 ( RNWTP) 0.000 0.000 0.000 0.000 0.000

CB 1 6 ( LWMWTP) 1 ,98 1 .495 28,767.682 28,767.682 20,087. 1 45 1 , 1 09.208

Total Productio n 1 ,9 8 1 .495 28,767.682 28,767.682 20,087. 1 45 1 , 1 09.208

note: MWD Tier ca lculation is based on calenda r year which begins on January 1 st

3

C U CAMONGA VALLEY WATER DISTR ICT

MO NTHLY WATER P R ODUCTION R E PO RT

FOR D ECEMBER 20 1 7

CU CAMONGA BASIN WELL WATE R P R O D U CTION

900 M 800 - M ,....

700

i:L 600 � c 500 0

�--� � I \� r-t.' ' , -u 400 ::;) \ r-,

e

2/ '

1:: I I/

�.!..-·· --· co·-- · -�· "' o- <J � f'- �

""'

- r---

- r---- 1---

k< r---

��-o <J 0 • <J

- 1---

- I -

�� :g -

M ,.... "'

... <J ,--1-J r-I

I 1-' II. 300

200

\. �L Hr--- r---'·"' �.� ' � Ill � 1 00

0

1- - -

I � ==;=== ==;=== -.() " " " ,.... " " " " ,.... " " " - - - - - - - - - - - - -0 0 0 0 0 0 0 0 0 0 0 0 0 "' "' "' "' "' "' "' "' "' "' "' "' "' u c ..0 0 Q_ >- c � Cll 0. t > u .Q 0 � " 0 0 0 lL ::E 4: ::E 4: Vl z 0

Mo nth

- Well Fie ld 2A Production - Well Field 3 Production

- Well Fie ld 3A Production -+-Cucamonga Basin P roduction

Well Water Production (AF) Static Water Depth (ft)

Well Address Field Dec 20 1 7 1 2-mo YTD FYTD Dec 201 7 3-yr Avg

8 8587 Baseline Road 2A 0.000 0.000 0.000 0.000 -242 -2 1 7 1 0 7 473 Alta Cuesta Drive 2A 0.000 0.000 0.000 0.000 -2 1 0 -209 1 1 8358 Red Hi l l Country Club 2A -2 1 8 - 1 77 1 2 8553 Basel ine Road 2A 0.000 0.000 0.000 0.000 -270 -239 1 3 9598 Banyan Street 3 48.970 477.400 477.400 249.090 -435 -403 1 5 6497 Amethyst Avenue 3 0.000 0.000 0.000 0.000 -37 1 -334 1 6 64 1 1 Sapphire Street 3A 0.000 0.260 0.260 0.260 -484 -399 1 7 64 1 0 Hellman Avenue 3 1 27.2 1 0 1 ,062. 1 90 1 ,062. 1 90 573.420 NA -370 1 9 8268 1 9th Street 3A 24.630 8 1 .880 8 1 .880 8 1 .880 -41 5 -385 20 8475 La Grande Street 2A 0.000 0.000 0.000 0.000 NA NA 2 1 8 3 1 1 1 9th Street 3A 0.000 0.000 0.000 0.000 NA NA 22 7322 Alta Cuesta Drive 2A 0.000 0.000 0.000 0.000 NA NA 23 6 6 1 1 Amethyst Avenue 3 8 2.840 633.220 633.220 299.940 -340 -307 24 8248 1 9th Street 3A 308. 1 40 2,747. 1 60 2,747. 1 60 1 ,232.770 NA -40 1 26 6 1 9 1 Amethyst Avenue 3 0.000 7 1 6.430 7 1 6.430 1 68.930 -4 1 0 -382 3 1 95 1 1 Highland Avenue 3 1 1 5.800 948.770 948.770 45 1 .960 -355 -325 33 6605 Hel lman Avenue 3 0.000 1 99.500 1 99.500 89. 1 00 -343 -342 34 1 799 Eastgate Avenue 3A 0.000 0.000 0.000 0.000 -358 -332

Total Productio n/Average Depth 707.590 6,866.8 1 0 6,866.8 1 0 3, 1 47.350 -342 -32 1

Well Fie ld 2A 0.000 0.000 0.000 0.000 -235 - 2 1 1 Wel l Field 3A 332.770 2,829.300 2,829.300 1 ,3 1 4.9 1 0 -41 9 -379

Well Field 3 37 4.820 4,037.5 1 0 4,037.5 1 0 1 ,832.440 -376 -352

4

MONTHLY WATER PR ODUCTION R EP O RT

FOR DECEMBER 20 1 7

CHINO BASIN WELL WATE R PROD UCTION

1 ,800

1 ,600

1 ,400

� 1 ,200 ... � c 1 ,000 0

-u ;:) 800 "'C V) � -o V) a.. 600

400 ��-=--� r-200

0

1-- 1--n I

-<> " " - - -0 0 0 "' "' "' u c _Q � 0 u..

0 _o- . "'-

"

I 1\ �I- \

l1 \� ZJ. /r" f& � R --;/

V) � fill I<

1---1•.

� I " " " � " - - - -0 0 0 0 0 "' "' "' "' "' 0 Q_ >- c: � 0 � :E <l: :E

Month

� \ I \ � - - co - o _/-

� -o

� � - J

" � " � - -0 0 0 0 "' "' "' "' Ol Q_ t; > :J 0 0 4: "' z

� -,r-

1--

1--

" -0 "' u 0

- Well Field 1 Production - Wel l Field 1 B Production - Wel l Field 1 C Production � Chino Basin Production

Well Water Production (AF) Static Water Depth (ft)

Well Address Field Dec 20 1 7 1 2-mo YTD FYTD Dec 201 7 3-yr Avg

97 45 7th Street 0.000 83 .820 83.820 1 4. 1 90 -429 -458 3 1 0085 6th Street 0.630 269.620 269.620 5 1 .540 -41 3 -433 4 9029 Archibald Avenue 0. 1 40 9.040 9.040 2.2 1 0 -438 -468 5 9085 Hermosa Avenue 2 .080 752.070 752.070 1 26.950 -435 -455

30 9029 Archibald Avenue 0.270 399.700 399.700 83. 1 50 NA 38 9029 Archibald Avenue 1 .540 489.720 489.720 1 00.500 -437 -465 39 7 420 East Avenue 1 C 277.900 707.690 707.690 370.300 -585 -585 40 7 420 East Avenue 1 C 66.970 633.3 1 0 633.3 1 0 1 73.730 -583 -590 41 7th & Cleveland 1 B 4.8 1 0 624.470 6 24.470 1 24.930 -436 -46 1 42 7th & Cleveland 1 B 2 . 1 50 65 1 .540 6 5 1 .540 1 92 .640 -44 1 -459 43 1 3226 Foothil l Boulevard 1 C 3 1 4.620 1 ,469.690 1 ,469.690 529.530 -506 -506 46 1 3226 Foothi l l Bou levard 1 B 0.240 1 09.230 1 09.230 1 6.850 -430 -448

Total Production/Average Depth 67 1 .350 6, 1 99.900 6, 1 99.900 1 ,786.520 -467 -484

Well Field 1 4.660 2,003.970 2,003.970 378.540 -430 -456 Well Field 1 B 7.200 1 ,385.240 1 ,385.240 334.420 -436 -456 Well Field 1 C 345 . 1 1 0 1 ,450.230 1 ,450.230 560.880 -533 -54 1

5

FOR DECEMBER 20 1 7

CANYON WATER PRODUCTION 700

600

500

LL <( � 400 c: 0 -... � 300 0 ...

0..

200

1 00

0

" J

I }( I �l \ r-...

-r--o " - -0 0 N N u c <1> 0 0 -.

r-... r-... "'

I �I ""-

I" " " 0 -

0 N N .n 0 <1> u.. ::f

� e; ""'

� (") ,� o-

'g; ""� r-... "'

..... -o -o r-... - -- "' -......... - -= ,

I \.

- I \ '== " " " " " " " - - - - - - -0 0 0 0 0 0 0 N N N N N N N a. >- c � Ol 0.. t 0 ::l ::l <1> 0 u 0 <1>

z 0

30

20

c � = tl .... c: tl

1:11::

1 0

0

- Day & East Canyon - Deer Canyon - Cucamonga Canyon -+-Total Canyon Production -+- Rainfall

Water Productio n (AF) P revious Year

Source Dec 20 1 7 1 2-mo YTD FYTD Dec 20 1 6

Cucamonga Canyon (AHBWTP) 69.8 1 2 93 1 .530 93 1 .530 4 1 2.956 24.407

Deer Canyon ( Res 8B) 3.4 1 0 1 7.690 1 7.690 1 0. 1 70 0.000

Day & East Canyon ( LWMWTP) 1 44.0 1 0 2,35 8.960 2,358.960 735.830 5 2.340

Tota l Productio n 2 1 7.232 3,308 . 1 80 3,308. 1 80 1 , 1 58.956 76.747

Rainfa l l ( in ) 0.0 27.4 27.4 0.7 4.8

6

CUCAMONGA VALLEY WATER DISTRICT MONTH LY WATER PRODUCTION REPORT

FOR DECEMBER 201 7

RECYCLED WATER PRODUCTION 300 �----------------------------------------------------------------------,

250

� 200 LL <t: 1: 0

1 50 ·.;: u :I

"C e Q. 1 00

50

0 -o t'-. t'-. t'-. t'-. � � � � � 0 0 0 0 0 N N N N N u c _Q 0 Q) 0 Q) 0 � u.. �

o_ <{

Source Dec 2 0 1 7

Recycled Water 1 63.070

t'-. t'-. t'-. t'-. � � � � 0 0 0 0 N N N N >- c � 0 � �

OJ :::> <{ Mo nth

• Recycled Water

Water Production (AF)

1 2-mo YTD

1 , 1 8 1 .830 1 , 1 8 1 .830

7

t'-. � 0 N 0.. Q) (/)

t'-. t'-. t'-. � � � 0 0 0 N N N u > u 0 0 Q)

z 0

Previous Year

FYTD Dec 201 6

788.623 39.420

R A I N FA L L SUMMARY

CU CAMON GA VALLEY WATER DISTR ICT

MONTH LY WATER PRODUCTION R E PORT

FOR DECEMBER 20 1 7

25.00 11"'""--------------------------------------.

20.00 �1-----

'2 1 5 .00 ·11-----tl

-1: � 1 0.00 �1----

5.00

0 0 o -0 0 0 0 0 0 0 0 0.00

-o 1'-. 1'-. 1'-. 1'-. 1'-. 1'-. 1'-. 0 0 - - - - - -

0 0 0 0 0 0 N N N N N N N N U · c _c 0 Q_ >- c :; QJ 0 QJ 0 :> � 0 � u... � <( � �

Month

• Campus • Res 8 B

Rainfal l ( in)

Rainfal l Station Dec 20 1 7 1 2-mo

District Office 0.00 2 1 .02

Deer Canyon ( Res 8B) 0.00 33.84

Average Rainfa l l 0.00 27.43

8

o "' o -o o r-.... 0 N Ol :>

<(

YTD

2 1 .02

33.84

27.43

'{) o- -o 0 . . o 0

1'-. -0 N Q_ QJ (/)

0 0 U') 0 . . o 0

1'-. -0 N ti 0

FYTD

O N 0 0 0 0 0 0 O ci 0 0 r-.... 1'-. 0 -

0 N N > u 0 QJ

z 0

Previous Year

Dec 20 1 6

0.09 4.48

1 .33 5 .07

0.7 1 4.78

FOR DECEMBER 201 7

POWER GENERATION SUMMARY 50,000 r------------------------------------"""1

40,000 ��-----------------'------------------------1 -o a.. 'f ..a ro � � � � 0 �0- � ;;> 6 � r--._ 6 � (") - co (") (") � �

1: 30,000 �1------- 1'-. ---.---- � -- N -----..-----l�r---- �-__ �- ---------1

0 � r- r- lc•.. '<t c co_ I· i> � 04

di o- N r::: '<t - 0 N �- 1'-. Q) L{) N

C> 20,000 - § -- ;;;- --J:m---- - 1- r---- - - I" - N N r-----1# r----

r--- R:_ -- �- -

... Q) � � � I ,

g. 1 0,000 - 1--. �'1------ft'l------ll" - r----

.; I ! 0 -\!="'---"==;==='-""===;==

-o 0 N u <ll 0

1'-. 0 N c a �

1'-. 0 N 0 ::E

1'-. 0 N

1'-. 0 N >a ::E

1'-. 0 N c �

Month

1'-. 0 N :J �

-

[.: � ......, 1:·:

"t----trMf---11' -r-

r---- I--

1'-. 0 N Ol :J <(

1'-. 0 N Q_ <ll Vl

1'-. 0 N tJ 0

1'-. 0 N > 0 z

1'-. 0 N u <ll 0

• Power Generation

Source

Power Generation

Cost Savings

(based on saving $0. 1 4 per KWHr)

Dec 2 0 1 7

1 6,272

$2,278.04

Power Generation (KWHr)

1 2-mo YTD

286,768 286,768

$40, 1 47.55 $40, 1 47.55

9

FYTD

1 32, 1 45

$ 1 8, 500.32

P revious Year

Dec 20 1 6

1 6,549

$2, 3 1 6.83

WATER USE EFF IC I ENCY REPORT

D ECEMBE R 20 1 7

Cucamonga Val ley® Water District

Imported Water

1 ,98 1 .5 AF 53.0%

Recycled Water 1 63 . 1 AF

4.4%

WATER PRODUCTION BY SOURCE

Groundwater 1 ,378.9 AF

36.9%

Canyon Water 2 1 7.2 AF

5.8%

MONTH PRODUCTION 3,740.7 A F

WATE R CONSERVATION ACT (SBX7-7) REPORTI NG (20 Percent Water Red uction by 2020)

300.0 -,----------------------------------,

c � 200.0 +----� � 1 50.0 +----0:: w � 1 00.0 +----==

50.0 +----

0.0 +----20 1 4

2 0 % Reduction - 2 3 1 . 8 GPCD

20 1 5 20 1 6

YEAR TO DATE FOR THE MONTH OF DECEMBER

- Water Use (GPCD) - 20% Reduction (23 1 .8 GPCD)

20 1 7

Note: Baseline GPCD is a 1 0-yr average ( 1 995-2004) water use - 289.8 GPCD

STATE WATER R ESOURCE CONTROL BOARD REPORTING (water use based o n 20 1 3 prod uction, reported since June 201 5)

DECEMBER 20 1 7 WATER USE

I N CREASE

CUMU LATIVE WATER USE S INCE JUNE 1 , 20 1 5

R E DUCTION

I_ As of J une 20 1 6, CVWD customers continue to fol low BMP's, achieving ongoing savings.

Page 2 of 3

300.0

250.0

200.0

1 50.0

1 00.0

50.0

0.0

30

25

20

15

10

5

0

LEAK DETECTION & MAINTENANCE/R EPAIR

Est. Water Saved : 676,093 gal .

-

Water Mains

-Traffic (T/C)

Fire Hydrant Water Laterals Angle Stops

• LEAKS REPAIRED • REPLACEMENT

WATE R WATCH PROGRAM

• Leaks Co m m u n i cated

• Residenti a l Lea k Investigations

• Landscape S u rvey/Audit

• Water Consultations

Set Resid entia l Irrigation Timer

Potentia l Water Saved : 4 23,577 gal.

REBATE PROGRAM

Page 3 of 3

• Parkway Turf Replacement

(CVWD PROG RAM)

• Residential I ndoor Devices

Residential Outdoor Devices

• Residential Landscape Program

• Pressure Regu lator Valve Program

C O M M U N I CAT I O N S & O UT R EAC H R E PO RT J A N U A RY 2 0 1 8

i i Cucamonga Val l ey® -�Wale! D istr ict


Save the Date ! [!ED /!to!�llJI!lfl rt.rtr.hl•11' ,. :.+-1."' • ! !.i..il!IiJ

2/21/2018 Resid en ti a l Contro l ler Frontier Project Regi o n a l workshop for p a rtici pa nts

U pgra d e Workshop i nterested i n the S m a l l Site Contro l l e r

Progra m . Workshop is open t o b oth CVW D

custom e rs a n d those from I E UA m ember

agencies.

2/27/2018 P roje ct W. E .T. I E UA: 6075 CVWD wi l l ass ist I EUA with th is Teacher

Workshop Ki m b a l l Ave. , Works h o p . Teachers rece ive h a n ds-on

Ch ino e nviro n m ental e d u cation cu rricu l u m for t h e

c lassroom .

3/1 1-3/17/2018 S u n s h i n e Week N/A Cel e b ration of Open Govern m ent; typica l ly

i n cl u d es a Procla m ation from the Board of

D i rectors.

3/14/2018 Resi d e n ti a l Contro l l er Frontier Project Regi o n a l workshop for p a rtic ipa nts

U pgra de Workshop i nterested i n the Smal l S ite Contro l l e r

Progra m . Works h o p is open t o both CVWD

custo m e rs a n d those from I EUA m ember

age ncies.

3/18-3/24/20 18 N a tiona l F ix a Leak N/A Co m m emoration of Fix a Lea k Week;

Week custo m e rs e n co u raged to fix l e a ks a ro u n d

t h e i r homes. CVWD wi l l p romote th is week

via Soci a l M e d i a .

4/7/2018 CVWD Earth Day & CVWD I Frontier The District's a n n ua l Earth Day Ce lebration

Open House P roject Ca m p u s a n d Open H o u s e .

4/28/2018 Water Savvy TBD CVWD wi l l h ost its Water Savvy Lan dscape

Landscape Tou r To u r to e d u cate residents abo ut t h e va l u e

a n d bea uty o f water savvy l a n d scapes .

M ay 2 018 Fifth Grade Poster TBD CVWD wi l l h ost the a n n u a l F ifth G rade

(d ate TBD) Co ntest Awa rds Poster Contest Awa rds ceremony in M ay. Ceremony Students a re recogn ized fo r the ir water-

wise a rtwo rk at th is fu n event.

5/16/2018 La n d scape Workshop : F rontier Project CVWD wi l l host th is workshop fo r

Wate r Wise P l a nts customers i nterested in converti n g to water

efficient l a n d scapes. Cl ass is focused on the

topic of water efficie nt p l a nts.

5/18-5/20/2018 So lar Cup Competition Lake S ki n n e r, Th e Los Osos H igh School Grizz l ies wi l l

Temec u l a compete for the second year i n a row, to

show off the ir so lar boat-b u i l d i n g ski l ls at

th is a n n u a l event.

Sp ring 2018 All Th i ngs Kids Expo Victoria Gardens An n u a l fa m i ly-focused event where CVWD

con n ects with p a rents a n d k ids a bout water

conservation .

/ /

� POLICY/ '-' REGULATORY

• Monitoring the Cal iforn ia WaterFix

• SB623 (Monn ing) - Water Fees

Workgroup

• Conservation Bi l ls Workgroup

-• -

LEGISLATIVE • ACTIV ITY

• SWRCB Comment Letter on

Prohibit ing Wasteful Water Use

• • Cucamonga Val ley® �Water D istri ct Service Beyond Expectation

! ! Cucamonga Va l l ey �Wate: D istr i ct Legislative and Governmental Affairs Report

Date: January 23, 2018

To: Board of Directors

By: Eric G ru bb, Principal Management Ana lyst

RE: Legislative Update as of January 16, 2018

Governor Brown's Newly Proposed Budget Includes Funding for Water Projects

Governor Brown recently released his proposed b udget of $ 190.3 bi l l ion for 2018-2019. His proposal

includes fund ing for severa l key water-related issues. Below are some highl ights: • $4.7 mi l l ion to set u p a safe drinking water fund consistent with the fram ework of SB 623

{Mennin g) to address the lack of safe d rinking water in some disadvantaged com mu nities; • $63 m i l l ion in bond funding, if approved by voters i n June, would fund cap ital costs for safe

d ri n king water p rojects in disadvantaged communities; • $61.8 m i l l ion (assuming passage of bond fu nding in J une) for the work of groundwater

susta inabi l ity agencies operating under the Sustainable Groundwater Management Act; • $84 mi l l ion (assu ming passage of bond funding in J une) for the State Water Boa rd to support

regional groundwater treatment and remediation activities that prevent or red uce

contamination of groundwater that is a source of drinking water; • $98.5 mi l l ion (assuming the passage of bond funding in J une) for flood control p rojects that

achieve pub lic safety, along with fish and wi ld l ife improvements.

In addition to the a bove water projects, the proposed budget includes significant fun ding for fi l l ing

the rainy d ay fund, k-12 and col lege education, conti nuing hea lth care expansion, transportation

infrastructure, p ayi ng down debts and labi l ities, and combating cl imate change.

New Department of Water Resources Director Appointed

Governor Brown recently appointed Karla N emeth as the new director for the Ca l ifornia Dep a rtment

of Water Resou rces {DWR). G rant Davis, who was appointed DWR d irector in August 2017, wi l l

return to the Sonoma Cou nty Water Agency to serve as its genera l manager. The changes come

fol lowing a recently released investigative report on last February's crisis at Orovi l le Dam and how

the department handled it. The move is intended to p lace more emphasis on d a m and flood safety

and incorporate lessons lea rned from recent i m pacts of extreme weather on the state's water

system .

Ms. Nemeth has served as the Governor's Deputy Secretary and Senior Advisor for Water Policy at

the Cal ifornia N atural Resources Agency since 2014, where she was Bay Delta Conservation P lan

project manager from 2009 to 2014. As part of the reorganization, Eric Koch, who has served in

n u merous leadership roles at DWR over the past decade, wil l serve in the newly created role of

Interoffice Memo 2

Deputy Director for Flood Management and Dam Safety. In addition, the agency created the new

position of Deputy Director for Integrated Water Management and Multi-Benefit Programs.

Department of Water Resources Conducts Snow Survey The California Department of Water Resources {DWR) recent snow survey found little snowpack,

which was predictable after a dry December throughout California. However, DWR representatives

also pointed out that it would be premature to draw any firm conclusions from the first snow survey.

Measurements revealed a snow water equivalent {SWE) of 0.4 inches, 3% of the average SWE of

11.3 inches for this time of year. SWE is the depth of water that theoretically would result if the

entire snowpack melted instantaneously.

DWR conducts five snow surveys each winter near the first of January, February, March, April, and

May. On average, the snowpack supplies about 30% of California's water needs as it melts in the

spring and early summer. The greater the snowpack water content, the greater the likelihood

California's reservoirs will receive ample runoff as the snowpack melts to meet the state's water

demand in the summer and fall.

Fortunately, Cal ifornia's exceptionally high precipitation last winter and spring has resulted in above

average storage in 154 reservoirs. DWR estimates total storage in those reservoirs at the end of

December 2017 amounted to 24. 1 mill ion acre feet {MAF), or 110% of the 21.9 MAF average for the

end of the year. End of the year storage is still the highest since December 2012 {24.3 MAF).

CA Water Fix Update Governor Brown's administration is working on an alternative plan to scale back the Ca Water Fix, a

$17 billion proposal to build two tunnels under the Sacramento-San Joaquin River Delta to make it

more reliable to move water through the Delta. Instead of two tunnels, the Department of Water

Resources has been negotiating with major California water agencies in recent weeks on a revised

plan to build just one tunnel at slightly more than half the cost of the original project.

The two tunnels would have a capacity of 9,000 cubic feet per second and the one tunnel would

carry from 3,000 to 6,000 cubic feet per second. The two tunnel project could still move forward in

its current form; however, ongoing negotiations are pointing towards the one tunnel project being a

more viable choice. Another option is that the project could be built in phases, with a second tunnel

an option but with no timetable for construction.

The water agencies involved in the negotiations include Metropolitan, the Santa Clara Valley Water

District, the Kern County Water Agency and other contractors of the State Water Project.

Interoffice Memo 3

State Le2islative Calendar January 1, 2018 Statutes take effect.

January 3, 2018 Legislature reconvenes.

January 10, 2018 Budget bill must be submitted by Governor.

January 19, 2018 Last day to submit bill requests to Office of Legislative Counsel.

February 16, 2018 Last day for bills to be introduced.

March 22, 2018 Spring Recess begins.

April 2, 2018 Legislature reconvenes from Spring Recess.

April 27, 2018 Last day for policy committees to report fiscal bills.

May ll, 2018 Last day for policy committees to report non-fiscal bills.

May 25, 2018 Last day for fiscal committees to report bills to the Floor.

June 1, 2018 Last day to pass bills out of house of origin.

June 15, 2018 Budget Bill must be passed by midnight.

June 28, 2018 Last day for a legislative measure to qualify for November 6 General Election bal lot.

June 29, 2018 Last day for policy committees to hear and report fiscal bills.

July 6, 2018 Last day for policy committees to hear and report bills. Summer Recess begins.

August 6, 2018 Legislature reconvenes from Summer Recess.

August 17, 2018 Last day for fiscal committees to meet and report bills to the Floor.

August 20-31, 2018 Floor session only.

August 24, 2018 Last day to amend on the Floor.

August 31, 2018 Last day for any bill to be passed. Final Recess begins.

Septernber 30, 2018 Last day for Governor to sign or veto bills.

November 6, 2018 General Election

TH E FO LLOW I N G PAG ES ARE TH E LEG I S LATIVE

R E PO RT. FROM I E UA'S M OST R EC E NT BOAR D

M E ETI N G F O R YO U R I N FO R MATI O N

December 22, 2017

To:

From:

RE:

Overview:

Inland Empire Utilities Agency

Michael Boccadoro Beth 0 lhasso

December Legislative Report

West Coast Advisors Stra tegic Public Affairs

The Legislature remained quiet in December, with members spending time in their districts getting ready to return to the Capitol in January. When they return in January, they will face a January 3 1 house of origin deadline for all carry over, two-year bills from last year and a February 1 6 bill introduction deadline. In addition to normal legislative business, the ongoing sexual harassment fallout will continue to play a big role in shaping the year. Several members have already resigned, with one more being asked to take a leave of absence and even more members rumored to be the next accused. Not only will this take a toll on doing business with fewer members in each house, the attention and time required to properly handle these issues will become a distraction from other issues.

The start of the "rainy season" has been anything but wet, raising concerns that dry conditions will continue through the winter, pushing the state back into drought-like conditions. The only positive piece of news is that most reservoirs remain significantly above normal levels for this time of year.

Fix the Grid, a coalition of clean energy companies, technical experts and environmental organizations working to modernize California's electric grid to facilitate large-scale integration of carbon-free renewable energy, hosted a briefing and panel discussion on the future of the grid. The briefmg was moderated by Don Furman of Fix the Grid and guest panelists included Laura Wisland, Union of Concerned Scientist; Michael Backstrom, Southern California Edison; Stacey Crowley, California ISO; and Danielle Osborn Mills, American Wind Energy Association (AWEA).

The California Air Resources Board (CARB) recently adopted the climate-change Scoping Plan, which provides a strategy for achieving a 40 percent reduction in greenhouse gas emission below 1 990 levels by 2030.

Drought Concerns

Inland Empire Uti l ities Agency Status Report - December 201 7

While California is technically in the middle of the rainy season, there are rising concerns because the season hasn't been all that rainy. In just three months, the percentage of the state experiencing drought conditions increased by about 20 percent. The main increase was documented in the south-eastern portion of the state, the same portion that was the last to emerge from the previous drought. While all reservoirs, except Oroville and Perris, on the State Water Project system remain above average, there are growing concerns that the state might be entering another prolonged dry period.

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Se ptember 1 2, 201 7

Fix the Grid Holds "Future of the Grid" Legislative Briefing Fix the Grid, a coalition of clean energy companies, technical experts and environmental organizations working to modernize California's electric grid to facilitate large-scale integration of carbon-free renewable energy, hosted a briefing and panel discussion on the future of the grid. The briefing was moderated by Don Furman of Fix the Grid and guest panelists included Laura Wisland, Union of Concerned Scientist; Michael Backstrom, Southern California Edison; Stacey Crowley, California ISO; and Danielle Osborn Mills, American Wind Energy Association (AWEA).

The briefing was attended by legislative staff and energy policy professionals. The bulk of the conversation included strategies for decarbonizing the electric grid and the transportation sector including a regional grid. Each panelist made a short presentation followed by a question and answer period by attendees. The individual presentations captured the following points:

• SoCal Edison: Three major steps for implementing a "clean" grid by 2030, while

avoiding negative impacts to consumers' pocket books, as follows: 1 . Decarbonize the electric sector (80% carbon free by 2030) 2. Electrify the transportation sector (25% of all cars and trucks electric by 2030) 3 . Electrify buildings (113 o f all space and water heaters b y 2030)

• CA ISO: A review of the current state of the grid, highlighting the ability to track GHG emissions coming to CA from energy resources out of the state; and the advantages of establishing regional day-ahead and real-time markets to reach carbon free goals.

• A WEA: Advantages of a regional renewable grid including achieving carbon free goals; cost effectiveness; job creation in California; technical diversity, leading to a balanced portfolio; and geographic diversity, allowing for maxiniized wind generation and distribution.

• UCS: "Why" and "how'' to decarbonize the grid. o Why: reduction of criteria air pollution from existing natural gas production

facilities; ability to electrify transportation sector; and job creation in CA. o How: Improving weather forecasting; improving energy storage; shifting demand

(both time of day and seasonal); shutting down "dirty" gas facilities first and "clean" facilities last, if at all; and decentralizing the grid.

During the question and answer period, legislative staff and advocates from the Sierra Club, Californians for Environmental Justice (CEJA), and the Independent Energy Producers Association asked questions. Questions were focused on decarbonizing the grid by eliminating coal generation and minimizing natural gas production; support for a regional grid from the utilities; replacing the impending closure of Diablo Canyon nuclear facility; benefits of an energy imbalance market; and the prioritization of electrifying the transportation sector over getting rid of natural gas - a ·clean and affordable energy source.

Predictably, CA ISO continued to highlight the benefits of a regional grid, while environmentally focused groups and panelists favored elimination of coal and natural gas (in most cases). Laura Wisland from the Union of Concerned Scientist repeatedly emphasized that the market alone will not force the elimination of coal and natural gas generation; state and national policies will need to force that change. She also added that while it is "politically uncomfortable" to establish a western regional grid, CA ISO is the only ISO that is. concentrated principally in one state. The other ISOs include both "red and blue states" with differing political agendas and environmental policies. Don Furman mentioned that the major utilities he has spoken to across the country are interested in renewable energy over more carbon intensive energy sources because of the opportunity to invest capital and see a return on those projects. Affordability was really only discussed in the context of uncertainty with electrifying the transportation sector.

It is unclear whether Fix the Grid will look to sponsor legislation on any of these topics next year, but renewable and carbon free energy as well as a regional grid will continue to be hot topics in the final year of the 201 7-20 1 8 session.

CARB Approves Plan to Achieve 2030 GHG Emissions Goal The California Air Resources Board (CARB) recently adopted the climate-change Scoping Plan, which provides a strategy for achieving a 40 percent reduction in greenhouse gas emission below 1990 levels by 2030.

The mix of programs outlined in the Scoping Plan for achieving a cumulative 62 1 million metric tons of carbon dioxide equivalent between 2021 and 2030 include cap and trade, the 50 percent renewable portfolio standard (RPS), cleaner vehicle and transportation programs, improvements to freight-system efficiency, and 1 8 percent reduction in carbon intensity under the Low Carbon Fuel Standard, reductions in short-lived climate pollutants, and a doubling of energy efficiency savings from natural gas and electricity end uses.

Legislative Outlook for 2018 Members will return to Sacramento on January 3 to hit the ground running on two-year bills from 2017. All bills introduced in 201 7 must be passed out of their house of origin by January 3 1 . February 1 6 is the deadline to introduce new bills.

A new leader, Toni Atkins (D-San Diego) will be sworn in in the Senate in the New Year, which will likely lead to some shuffling of committee assignments.

Long-term water use efficiency and funding clean drinking water for all Californians will be hot topics when the Legislature reconvenes. On the energy side focus will remain on a proposal for 1 00 percent clean energy and the creation of a western-region electrical grid. The Governor will be working to cement his legacy in his final year of office, including getting the final details and permits in place for the California Water Fix. Finally, most members will be running for reelection in 201 8. Democrats will be seeking to solidify the gains they made in 201 6 and Governor Brown's replacement will be determined.

In addition to members running for re-election, there are water bonds slated for both the June and November ballots, and the first special election has been called to replace members who have resigned amongst sexual harassment claims. There will likely be several more members accused and possibly resigning, or being expelled, in the coming months.

Democrats will temporarily lose their two-thirds majority, should any more Democratic members resign from the Assembly, which would make it more difficult to pass any taxes or fees such as SB 623 (Monning).

The Governor will release his preliminary budget on January 1 0, which will include billions of dollars in Greenhouse Gas Reduction Fund revenue.

With all these moving parts, 201 8 should prove to be an interesting year in Sacramento.

Innovative Federal Strategiesuc Comprehensive Government Relations

MEMORANDUM

To: Halla Razak, Joe Grindstaff, Kathy Besser

From: Letitia White, Jean Denton, Annie Wake, Shavenor Winters

Date: December 22, 2017

Re: December Monthly Legislative Update -------------------------------------------------------------

Congress Pushes Ta% Reform Across Finish Line

The tax bill passed the House 227-203 on Tuesday, December 19, but was sent back to be voted on again after the Senate stripped out certain provisions of the bill that did not comply with the Byrd Rule, related to federal revenue and spending.

The Senate passed the measure by a 51-48 party-line vote early Wednesday, December 20. Both the House and the Senate have to pass an identical bill before the president can sign it into law.

The House Ways and Means Committee Chairman Kevin Brady (R-TX) said earlier that "the only thing better than voting on tax cuts once is voting on tax cuts twice." After the bill passed, Brady could be seen on the House floor exchanging fist bumps with Rep. Steve Scalise (R-LA), as other Republican members waited to shake his hand and hug him.

The Tax Policy Center estimated in a new analysis that the Republican tax bill will add $1.3 trillion to the deficit over 10 years once the benefits from economic growth are factored in. According to a statement, the bill would increase the gross domestic product by 0.8% in 2018.

The measure would have negligible effect on the GDP in 2027 or 2037, according to the TPC. President Donald Trump could signed the tax bill on Friday, December 22, after Congress passed a short-term spending bill that includes suspendirig the so-called PAYGO rules that would require automatic spending cuts tied to the tax reductions.

President Trump's signature was the last step to making the GOP tax legislation official. Many of the tax changes go into effect at the start of 2018. Individual taxpayers will start seeing withholding changes in their paychecks in February, Republican leaders say.

Republicans pointed to corporate announcements of more spending on employees after the bill's passage as an indication that the plan will boost economic growth. AT&T Inc. and Comcast Corp. announced Wednesday, December 20 that they will give their

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employees $1,ooo end-of-the-year bonuses on news of the tax cuts. Wells Fargo & Co. and Fifth Third Bancorp said they would raise their minimum wage to $15 an hour. Boeing Co. pledged $300 million in investment for employees and charities.

Corporations are "standing up and saying just exactly what people like Speaker Paul Ryan (R-WI) have been predicting for a long time," Senate Majority Leader Mitch McConnell (R-KY) told reporters Dec. 21. "This is going to provide great opportunities for the employees of our economy."

House Divided

Democrats pushed back on the idea that companies will automatically increase investment and wages because of a corporate tax cut. Rep. Lloyd Doggett (D-Texas) said offering employees a one-time bonus does more to generate good headlines than economic growth.

"They've not yet delivered even one-fourth of the blessings per household," Doggett said, referring to a pledge Trump made that the tax bill would amount to a $4,000 pay increase. "I hope next year everyone is asking, 'Where is my money?'"

In addition to wage hikes and job increases, Ways and Means member Kenny Marchant (R-Texas) said the new legislation will result in companies buying back some of their stock and paying more dividends to shareholders.

"I think they will pay bigger dividends" and do more buybacks, Marchant said. Those actions would benefit shareholders directly, but in a lot oflarge companies, employees are shareholders so they'd also reap that benefit, he said.

House Ways and Means Committee Chairman Kevin Brady (R-Texas) said he is prepared to make changes to the legislation in the coming years to fix technical problems or address larger-scale updates to the tax code.

"We're not waiting another 31 years," Brady told reporters. "We1l do what it takes to compete and give our workers and businesses a fighting chance around the world."

Congress may need to amend the tax changes if foreign countries were to drastically lower their tax rates, if lawyers were able to discover loopholes in the code, or if trading partners were to raise objections to the legislation with the World Trade Organization.

Money Talks

Congress will resume government funding negotiations in January, with the continuing resolution set to expire Friday, January 19. Budget increases for the IRS, tasked with implementing the new tax plan, will likely come up, but Congressman Brady said the agency needs to make a compelling case to receive more funds.


"The assumption is not we're opening the pocketbook," he said. "The assumption is we need to know what it takes to implement this effectively and efficiently."

Republicans may be more likely to allocate additional money to the IRS now that David Kautter, a President Trump pick, is the acting commissioner of the agency. GOP lawmakers have cut the IRS's budget for several years, citing concerns about the agency's alleged targeting.

Continuing Resolution Sent to President

The continuing resolution to fund the government through Friday, January 19, passed the House 231-188 and the Senate 66-32 on Thursday, December 21.

The Senate gave final approval Thursday, December 21, to a short-term extension of federal funding to keep the government running for three more weeks while shoving a raft of fiscal and policy fights into the new year.

The spending measure, was signed into law by President Donald Trump on Friday, December 22, maintains current levels of spending through Friday, January 19 and provide $4.5 billion in emergency funding for missile defense work as well as other Pentagon expenses. It passed the Senate 66-32 after winning approval in the House 231-188.

It also provides money for several health programs and a funding bridge of $2.85 billion ·

for the Children's Health Insurance Program, or CHIP. A temporary extension of a section of the Foreign Intelligence Surveillance Act, or FISA, that allows collection of emails and other messages without a warrant also was included.

Among the most noteworthy provisions in the stopgap measure is a waiver of a budget rule that would trigger automatic cuts to Medicare and dozens of other federal programs because of the deficit impact of the tax overhaul signed into law this week. The waiver would cleared the way for President Trump to sign the tax legislation before the end of the year rather than waiting until January.

Disaster Aid

The Senate shelved a separate $81 billion disaster aid package passed by the House, a blow to representatives from Texas, Florida, California and Puerto Rico, all of which were hit by devastating natural disasters this year. It was done in by a group of Republicans who argued it should be offset by spending cuts elsewhere and some Democrats who decried the package insufficient and want to use it as leverage on other issues.

The debate over the aid package now will carry into January, where it will be added to an already loaded agenda for lawmakers when they return from a holiday recess, which includes debates about the budget, immigration, health care and raising the federal debt ceiling.


The wrangling that it took to cobble together a stopgap spending plan that could pass both the House and Senate drained away some of the euphoria in the Republican ranks left over from passage of their tax overhaul.

House GOP leaders backed down from their initial plan to appease the defense hawks in their ranks by attaching full funds for the 2018 military budget and forcing the Senate to decide how to approach the Democrats whose help they would need to help pass it. There was simmering resentment -- as Republicans cast their votes just before leaving town for the holiday -- that their policy making would once again be held hostage by the minority party in the Senate.

Republican unity still held strong enough in the House to approve the spending bill without having to count on votes from Democrats -- 14 of whom voted for the measure. Late night negotiations on Wednesday, December on how to fund the most basic functions of government yielded a bill that was exciting to no one, but ultimately acceptable enough to send over to be tested by the tricky math of the slim GOP majority in the Senate.

As a sign of just how deep partisan divisions run, Republicans and Democrats couldn't even agree on how to fund the Children's Health Insurance Program( CHIP), which provides assistance to low-income families. This program has been running on emergency funding for months, and in this bill receives only enough to get it through March 2o18.

The House passed a version of CHIP funding earlier this year, but Democrats opposed it because its costs were offset by cuts to other government health programs.

The Veterans Choice Act, to give veterans more flexibility in their health care options, also receives $2.1 billion under the spending bill.

And the defense spending that some conservatives have for weeks said was their Number 1 priority will continue for just three more weeks, along with some extra funds that the military requested for things like ballistic missile defense and repairs to naval ships. House Speaker Paul Ryan, recognizing the political risks of removing the full defense spending bill because of Senate concerns, assured his members on the night of Wednesday, December 20, that Defense �ecretary James Mattis had signed off on this strategy, according to a person who was in the closed-door meeting.

Republicans. still have to complete negotiations with Democrats on the ultimate levels for defense and non-defense spending for fiscal year 2018, because the Budget Control Act of 2011 caps those costs. Those levels must be worked out before congressional appropriators can write the package of spending bills that will last until the end of fiscal year 2018. Ideally, this legislation. would be ready ahead of the new Jan. 19 shutdown deadline.


The disaster funding, which could be used to repair damaged facilities and equipment and support emergency operations, would be distributed among federal agencies as follows:

Department (dollars in millions)

Homeland Security Department

Housing and Urban Development Department (HUD)

Army Corps of Engineers

Agriculture Department

Education Department

Transportation Department

Small Business Administration

Defense Department

Health and Human Services Department

Commerce Department

Interior Department

General Services Administration

Veterans Affairs Department

Justice Department

NASA

Labor Department

Energy Department

Emergency appropriations $28,612.2

$26,o6o.o

$12,090.0

$2,900.0

$1,659.0

$1,155.2

$800.1

$127.0

$93·5

$85.2

$81.3

$60.9


National Science Foundation $16.g

Government Accountability Office

Environmental Protection Agency $13.2

Legal Services Corporation $1.0

Tough Negotiations

However, the acrimony left over from Ryan switching strategies in the hours between the tax vote and the spending vote could limit his wiggle room on the tough negotiations that await when Congress returns in January.

Democrats stepped down from their demands for immigration protections this year, but the status of undocumented people brought to the U.S. as children must be resolved before March. Some Republicans say this immigration fix is a priority for them as well.

Senator Susan Collins(R-ME) also relented on her demand for legislation this year that would stabilize health insurance markets, but these bills -- which are extremely unpalatable to House Republicans -- are certain to resurface next year.

Although the Republicans who control Congress are on their way to avert a government shutdown on the heels of their tax victory, the tough decisions they didn't confront this week sets them up for a difficult start to 2018.

I

Both the House and Senate have finished voting for the week and 2017 and are departing Washington D.C., eyes begin to turn to the agenda for 2018.

Congress Averts a Shutdown But Now Faces a Messy Start to 2018 Patience Thin

Patience is running thin among both Democrats and Republicans.

Many lawmakers are eager to take agencies off auto-pilot and to devote more funding for the armed forces, the opioid abuse crisis, medical research and other priorities. They are divided, however, over how much to spend and how much to add to deficits.

·

To get the stopgap bill enacted, lawmakers dropped plans to provide long-term financing for the Children's Health Insurance Program, or CHIP, and the community health centers program as well as a long-term extension of electronic surveillance programs. Resolving those issues will take priority over the president's plans for an infrastructure bill and welfare reform.

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Senate Minority Leader Chuck Schumer(D-NY), said Thursday that he thought the disagreements could have been resolved ''had my Republican colleagues, especially in the House, not put them on the back burner while jamming through their tax bill."

Bipartisan Standoff

Both parties are expected to return to the negotiating table in early January to try to hammer out a budget cap agreement, raising limits on domestic and defense spending imposed under the 2011 Budget Control Act.

They are far apart.

House Minority Leader Nancy Pelosi said that Republicans have sought to increase defense spending by $54 billion and non-defense spending by $37 billion. Democrats find that unacceptable because they want equal increases.

Surveillance Law

Both Republicans and Democrats are deeply divided over the government's warrant-less electronic surveillance law, Section 702 of the Foreign Intelligence Surveillance Act, or FISA. A compromise attempt between Republican libertarians and security hawks was pulled from consideration this week. Instead, a short-term extension of the authority, to Jan. 19, was put into the funding bill.

In the Democratic ranks, lawmakers face increasing pressure to force a showdown on the Dreamers, who had been protected under an Obama administration program called Deferred Action for Childhood Arrivals, or DACA.

In September, President Trump revoked the order and some of the undocumented immigrants say they are already losing protected status, along with their jobs.

Senator Jeff Flake(R-AZ) has secured a commitment from Senate Majority Leader Mitch McConnell to put any deal on the issue on the Senate floor in January.

A deal could involve expanded border security spending. Sticking points remain on President Trump's demand for a border wall, for more deportation agents and for changes that would end the ability of immigrants to bring family members to the U.S.

Battle Ahead

"The battle's going to come in January," Ralph Norman(R-SC), said in an interview after the House approved the temporary funding. "One of the reasons I voted for this now is I didn't want DACA thrown in."

Then there's the question of Affordable Care Act's future, which continues to haunt the Capitol.

Senator Susan Collins(R-ME) says she has a commitment from Senator McConnell to allow votes on two Affordable Care Act bills meant to lower premiums by restoring costsharing reduction payments and by setting up a reinsurance program. But they face strong opposition among Republicans in the House.

Some Republicans want to make another run at repealing Affordable Care Act once the leftovers are out of the way.


Senator McConnell has suggested that repeal is off the table. That sparked a furious rebuke from Senator Lindsey Graham(R-SC) and will worsen in January once Alabama Democrat Doug Jones is sworn in to the U.S. Senate and the Republican majority shrinks to 51 members.

Senator McConnell also suggested cutting entitlements will not be on the agenda next year, a day after House Speaker Paul Ryan said he wants to push welfare"'to-work proposals. Senator McConnell could use the budget process to try to ram through work requirements for welfare, food stamps and Medicaid, though that could be politically difficult in an election year.

White House Gears up to lay out Infrastructure Plan

President Donald Trump plans to keep pushing his legislative agenda in 2018 by releasing his long-promised infrastructure proposal in early January.

Infrastructure advocates question whether a Republican-led Congress will be able to pass a spending plan with enough federal funding if it's already approved a tax measure that official estimates say would bloat the budget deficit. Some say the Trump administration missed its best opportunity to deliver a meaningful public works initiative by not incorporating it into the tax bill, which is nearing approval.

The Russell 3000 Building Materials Index gained as much as 2.2 percent on the news and closed up 1.8 percent, as companies including Summit Materials Inc., Vulcan Materials Co. and Martin Marietta Inc. spiked sharply higher.

President Trump Promised

President Trump promised during his campaign to introduce a $1 trillion proposal within his first 100 days in office, then the Trump administration said there'd be a plan by the third quarter. That did not happen after the failed attempt to overhaul health care and the ongoing tax effort.

The President aims to release a detailed document of principles, rather than a drafted bill, for upgrading roads, bridges, airports and other public works before the January State of the Union address. The White House plan is essentially complete and President Trump recently reviewed it. It calls for allocating at least $200 billion in federal funds over 10 years to spur at least $8oo billion in spending by states, localities and the private sector.

The plan would put the federal dollars in four areas: cash for states and localities, with preference for entities that generate their own funding as well; formula block grants for rural areas; federal lending programs; and money for "transformational" work such as plans to build high-speed trains in tunnels by Boring Co., which was founded by Elon Musk.

Shifting Responsibility

Innovative Federal Strateg7.es LLC

The guiding principle of the plan is to shift responsibility for funding from the federal government to states and localities -- which own or control most assets -- by providing incentives for them to generate their own sustainable funding sources and work with the private sector.

Still, some governors and mayors have already balked, saying they're doing their fair share and that much more federal funding is needed to meet what the American Society of Civil Engineers has estimated to be a $2 trillion funding gap for infrastructure by 2025. Some advocates say the best chance was to include measures such as a higher gas tax or levies on corporate profits returned from overseas in the tax overhaul.

"We need to be honest with the American people: failure to find the revenue for an infrastructure initiative now, as part of tax reform, will make passage of such a package nearly impossible in the future," Bud Wright, executive director of the American Association of State Highway and Transportation Officials, said in a letter last month to Senate leaders.

Too Difficult

A White House official said it would have been too difficult to combine infrastructure with the tax bill. The plan now is to give Congress a blueprint for a bill and allow the details -- including funding -- to be negotiated in a bipartisan way, the official said.

The U.S. Chamber of Commerce sees the $200 billion amount as "a floor, not the ceiling," said Ed Mortimer, the chamber's executive director for transportation infrastructure.

The chamber has advocated raising the federal gas tax, which has not been increased since 1993 as the easiest and fairest way to generate money. The Trump Administration has not endorsed the idea but has not taken it off the table, either.

Cautiously Optimistic

Michael Burke, chairman and chief executive of AECOM, the world's biggest engineering firm, said he's "cautiously optimistic" about Congress enacting an infrastructure bill in 2018 but is disappointed that it didn't happen this year.

Despite the "headwinds and political turmoil," Macquarie Infrastructure and Real Assets remains hopeful a proposal will emerge in 2018 because there is political constituency for it from across the political spectrum, Managing Director David Agnew said in a statement.

One problem is how to treat states and localities that have already raised money for projects so they're not disadvantaged in the competition for federal funding, said Jim Tymon, chief operating officer of the American Association of State Highway and Transportation Officials in Washington.


Gas Taxes

Twenty-six states have raised or adjusted their motor-fuel tax rates and other fees during the past five years, and voters in 20 states approved $4.2 billion in new and continued funding for infrastructure in Nov. 7 ballot issues alone, according to the American Road & Transportation Builders Association.

The White House official said entities that raised revenues over time would get credit in the process, as will those that take action in 2018 instead of waiting for a federal bill.

The Trump Administration has also said a major element of its plan will be streamlining environmental reviews and permitting for projects, vowing to reduce the time it takes to get approvals to about two years.

Peter DeFazio (D-OR), the top Democrat on the House Transportation and Infrastructure Committee said, "there have been previous streamlining initiatives that have not yet been implemented, and it would be a mistake to focus on streamlining when more funding is needed." He said the initiative is already at risk because it has been delayed so long.

Still, infrastructure has always been a bipartisan issue, and there has not been this type of discusSion about infrastructure at the federal level in decades.

Blackburn: Net Neutrality BiU Up for Panel Vote in Early 2018

A House tech and telecom panel will likely vote on a net neutrality bill early next year, the bill's sponsor, Rep. Marsha Blackburn (R-TN).

Blackburn introduced the bill days after the Federal Communications Commission removed Obama-era internet rules banning internet service providers from blocking or slowing internet traffic, or from creating different tiers of network access for fees.

Blackburn's bill would continue to bar ISPs from blocking or slowing traffic. But it would retain the FCC's reclassification of the internet as an information service, rather

· than a telecom service, effectively shielding ISPs from some stringent requirements. It also aims to override state laws that may contradict its language, an attempt to possibly blunt the effects of states' legislative plans to push back on the FCC changes.

The vote would kick off Capitol Hill debates on the heated issue amid court challenges to the FCC's rollback, contributing to the legal and regulatory discord over net neutrality in 2018. Meanwhile, both ISPs and conten� companies also have urged lawmakers to pass legislation to clarify the much-altered rules.

Blackburn heralds her bill as "simple," but its brevity could invite Democratic objections given that it leaves out a key 2015 net neutrality principle: a ban on prioritized network


lanes. They also could criticize the bill's siding with the FCC regarding the internet service classification.

Blackburn defended the FCC's decision to toss out the 2015 classification of the internet as a utility-like telecom service, saying it was an overreach by Obama's FCC. "It was government control of the internet," she said.

But she also said she could find common ground with Democrats on the two main provisions: bans on blocking or slowing network traffic. "You have the agreement on those two components, and we would like to see it done in a bipartisan manner," she said.

Blackburn urged Democrats to do their legislative duty and address this legislatively rather than waiting out the court challenge to FCC.

Blackburn's other 2018 legislative priorities include expanding broadband access, reauthorizing the FCC, helping free up more space on the airwaves, and addressing internet privacy and data security.

End of Net Neutrality Creates Uncertainty for Rural Telehealth

The repeal of government net neutrality rules could potentially harm rural patients' ability to speak to 1:1 remote physician or electronically send a hospital health information from personal devices.

About 20 percent of Americans live in rural areas "where many do not have easy acce$8 to primary care or specialist services," according to a 2015 American Hospital Association report. With the long-term impact of the Federal Communications Commission's decision uncertain, some legal and policy experts believe that changes to the internet and how access is priced could restrict some rural patients' access to telehealth services. On Thursday, December 14, the FCC voted 3-2 to repeal rules barring internet service providers such as Comcast Corp. and AT&T Inc. from slowing or blocking web traffic. The 2015 Obama-era rules reclassified internet access under the Communications Act from an "information service" to a "common carrier service," moving regulatory jurisdiction of the internet service providers (ISPs) solely to the FCC from joint jurisdiction under the FCC and the Federal Trade Commission. Now, the FfC will regain full responsibility.

In a statement, the FCC said its vote was undoing 2015's "utility-style regulation of broadband Internet access service, which imposed substantial costs on the entire Internet ecosystem."

The new rules will take effect 6o days after they are published in the Federal Register, which has not yet happened. State attorneys general and activist groups have announced intentions to sue the FCC, advocating for a free and open internet.

!Imovative Federal Strategies LLC

The impact of the repeal on rural and elderly patients is unknown.because the ISPs can each decide how to implement new practices and payment structures. Rural patients who don't live close to the doctor or lack sufficient Internet access may face increasing personal costs or difficulty connecting with telehealth services if the price of bandwidth increases, attorneys and health technology professionals. Small hospitals, health systems, and telehealth companies may also be unable to compete with large companies for high-quality service.

Telehealth services include a variety of functions, such as allowing patients to communicate with physicians from their homes and technology applications that pass real-time and stored health data electronically to physicians. They can include a patient using a video conference to speak with a physician, remote patient monitoring, and mobile health communication. These services have become increasingly popular over the past few years among patients who lack easy access to a physician and elderly patients whose health needs constant monitoring. ·

About 39 percent of America's rural population (about 23.4 million people) lack access to advanced telecommunications capability, compared with 4 percent of the urban population, according to the FCC's most recent broadband report published in January 2016. The agency recently created the Rural Broadband Auctions Task Force to increase mobile coverage in rural areas.

Direct .consultation for patients over the internet, services that provide patients with medical education, and the ability for doctors to evaluate data uploaded from patients' personal devices like heart rate monitors "could be constricted if they were treated differently than preferred traffic," Leslie Lenert, chief research information officer at the Medical University of South Carolina.

About so percent of Americans only have one ISP to choose from, so the "idea that you could switch providers to get the performance you needed is not true," Lenert said. The lack of choice affects less-densely populated areas, which are "just the ones we like to serve with telehealth applications," he said. Lenert, who is a proponent of reduced regulation, said that the rules under net neutrality also did not go far enough to prefer health data over other internet traffic.

Prioritized Service

ISPs that control the quality of service for different players are the potential big winners of the repeal, and the potential losers are innovation and the marketplace, because a non-neutral network will favor the bigger players, like Google and Netflix, because they have the money to pay for the bandwidth.

The result of the changes will depend on how ISPs structure their systems, and if they · choose to have business agreements with large companies, Gaynor said. This model of a

business agreement, called paid prioritization, could potentially slow down traffic for companies that don't pay as much as others. Many ISPs say they will not implement a


paid prioritization model, but it is difficult to predict what the internet companies will do, he said.

·

A paid prioritization model could potentially affect smaller hospitals', health systems', and telehealth companies' ability to provide telehealth services if they can't pay a high cost, especially those in rural areas that already have broadband issues. The structure could also create a multi-tiered health-care system if the large hospitals that have the money to pay for more bandwidth can only treat wealthier patients who can pay for the higher-quality service.

Remote monitoring capabilities and digital health services delivered in the home or workplace require "a very high-quality internet connection," according to Rob McCray, president and chief executive of the Wireless-Life Sciences Alliance, a San Diego-based trade organization for innovative health-care technologies.

Patients with chronic diseases often utilize remote monitoring technologies, and patients that either don't have access to a monitoring program or drop out because of the high cost could risk exacerbating conditions if health problems go unchecked.

Patients receiving services directly in the home could see increased costs because the telehealth programs are delivered over the patients' internet connection.

! ! Cucamonga Valley® ��ater District


Staff Report To: From: Agenda Title:

Purpose

Date: January 23, 20 1 8 Board of Di rectors / Martin E. Zvirbul is, General Manager/CEo/'AQf' PARS Quarterly Investment Report - December 3 1 , 20 1 7

The District's Administrative Pol i cy 1 .6 - PARS Investment Pol icy requi res that the Chief Financial Officer provide a quarterly report of investments to the Board of Di rectors. This report demonstrates the commitment to provide timely and transparent financial reporting.

Background/Analysis The total portfol io market value as of December 3 I , 20 1 7 is $6, 1 90,56 1 . This portfo l io consists of cash and cash equivalents of $95,339 and mutual fund holdings of $6,095,222. The total market value of the portfol io holdings increased by $200,38 1 during the quarter ended December 3 I , 20 1 7.

The Pol icy establ ishes asset al locations in order to achieve the greatest l ikel ihood of meeting the plan's investment objectives and the best balance between risk and return. The fol lowing table outl ines the District's holdings and the established target asset al locations:

Asset Allocation Asset Allocation Actual Allocation Asset Classes Range Target 1 2/3 1 /20 1 7

Cash Equivalent 0 - 20% 2% 1 .54% Domestic Equity 23 - 43% 3 3% 3 6.43% lnternat;ional Equity 7 - 27% 1 7% 1 9. 1 4% REITs 0 - 1 5% 0% 0.00% Fixed I ncome 30 - 70% 48% 42.89%

In the section titled "Reconci l iation of Total Market Value Return", the annualized total return for the six months ended December 3 1 , 20 1 7 is 1 2.4%. This section shows a calcu lation of the portfol ios annual ized total return since the beginn ing of the fiscal year which is very different from the portfol io's yie ld . The yield i nc ludes only d ividends, whi le the annual ized total return inc l udes d ividends and changes in market value. This total return is a reflection of a strong market value gain during the six month period. The annual ized total return figure is expected to be h ighly volatile; however it is a way of quantifying the portfol io's recent overall performance.

Alignment with Strategic Goals Providing a quarterly PARS Investment Report supports the District's values of Accountabi l ity and Communication by provid ing financial transparency of the performance and amount of the investments held.

January 23, 20 1 8 PARS Quarterly Investment Report -December 3 1 , 20 1 7 Page 2

Fiscal I mpact None

Recommendation Staff recommends the Board of Directors approve the PARS Quarterly Investment Report as presented.

Attachment: PARS Quarterly Investment Report, December 3 1 , 20 1 7

Submitted by: Carrie Corder, Assistant General Manager/CFO CV

Prepared By: Chad Brantley, Finance Manager


SUMMARY OF ASSETS

Investments

Money Market Account Equity Mutual Funds R E IT Equity Mutual Funds I nternational Equity Mutual Funds Domestic Fixed I ncome Mutual Funds

Total Cash and Investments

Portfolio Effective Yield

Portfolio Target Rate of Return

Portfo l io Al location

(Market Value)

Quarterly PARS Investment Report For the Quarter Ended December 31 , 201 7

Book Value

(historical cost)

$

$

95,339 $ 975,776

1 ,521,381 2,660,294

5,252,790 $

Money Market

Market Percent of Value Portfolio

(market value)

95,339 1.54% 0.00%

1,184,844 19.14% 2,255,261 36.43% 2,655,117 42.89%

6,1 90,561 1 00.00%

RECONCILIATION OF TOTAL MARKET VALUE RETURN Fiscal Year 2018 Market Market Adjustment for

Six months ending 12/31/2017 Value Value Fees, Distributions 6/30/2017 12/31/2017 and Contributions

Total Portfolio $ 5,827,994 $ 6,190,561 $ 21,842

CURRENT QUARTER INVESTMENT INCOME

Month Interest Dividends Income

October $ 64 $ 6 , 758 November 79 6,802 December 66 33,620

Total I nterest Earned $ 209 $ 47, 1 80

Target Allocation

2.00% 0.00%

17.00% 33.00% 48.00%

1 00.00%

Adjusted Change In Portfolio

Value

$ 384,409

Current Yield

1 .17% 0.00% 1.68% 1.67% 3.10%

2.28%

5.00%

Annualized Total

Return

12.4%

! ! Cucamonga Valley® �Water District ·

Service Beyorid Expectation

STAFF REPORT To: From: Agenda Title:

Purpose

Date: January 23 , 20 1 8 Board of Di rectors j J\ _ _-Martin E. Zvirbul is, General Manager/CEO Ill r Y Award of Contract for the Construction of New Well 48 Transmission Main

Award of Contract to C.P. Construction, Co., Inc. for the construction of New Wel l 48 Transmission M ain Project in the amount of $656,440.

Background/Analysis

The construction of Well 48 Transmission Main Project ("Project") is part of a larger program to add a new groundwater well in the Chino Bas in . The program is consistent with the District's water supply planning strategy. It is budgeted as CP7025 and is known as Wel l 48. The project is a multi-year project and is being del ivered in three phases. This p ipel ine construction is the second phase of the project.

The well is located in an easement on the Water of Life Church property in Fontana. The fi rst phase of the project was to develop the wel l , which was completed in March 20 1 7. The Well Completion Report indicated that Wel l 48 wi l l be able to produce up to 3 ,500 gal lons per minute, making it one of the highest producing wel ls in the District. The second phase of the project (th i s Project) wi l l construct 2,360- l inear feet of 1 6- inch diameter cement-mortar l ined and coated steel pipel ine from Well 48 to Reservoir I C. The th ird and final phase of the project, which i s currently entering design, wi l l equip the wel l with a pump, motor, electrical service and gears, and other anci l lary faci l ities to bring the well on l ine.

A request for competitive bids for this Project was sent out on November 8, 20 1 7 to five (5) general contractors. Three (3) bids were received on December 1 2, 20 1 7. C .P. Construction, Co., I nc. was the lowest responsive and responsible b idder with a price of $656,440.

Alignment with Strategic Goals This project wi l l increase the District's groundwater production capacity and wi l l improve overal l water supply flexibi l ity.

Fiscal Impact Funding for the Project is included as part of the District's 20 1 7- 1 8 fiscal year Capital I mprovement Budget under CP7025. The total budgeted amount for well equipping and construction of transm ission main is $ 1 ,270,000.00.

January 23, 20 18 Award of contract for the construction of New Well 48 Transmission Main Page 2

Recommendation It is recommended that the Board of Directors approve the Award of Contract for the construction of New Wel l 48 Transmission Main to C.P. Construction, Co., Inc . in the amount of $656,440.

Attachment: Bid Resu lts Location Map

Submitted By: Prepared By:

John Bosler, Ass istant General Manager/ coo:fi:5 _/ Eduardo Espinoza, Design & Construction Manager /i!§-'12:/

CUCAMONGA VALLEY WATER DISTRICT P.O. BOX 638 RANCHO CUCAMONGA, CA 9 1 729

Dec ember 1 2 , 2 0 1 7 2 : 0 0 p . m . Work Order No . C P 7 0 2 5 / W0 1 9 6 4 4 7

BID RESULTS

PROPOSALS FOR THE CONSTRUCTION OF NEW WELL 4 8 TRANSMI S S I ON MAIN

Con t ractor Total Amount

C . P . Con s t ruc t i on Co . , I nc . $ 6 5 6 , 4 4 0 . 0 0

Nor s t a r P l umb ing & Eng i n e e r i ng , I nc . $ 6 9 2 , 5 4 0 . 0 0

Mer l in Johnson Con s t ruc t i on , I nc . $ 9 6 8 , 2 7 9 . 0 0

BANYAN

VICINITY MAP

0:: w >(/) w .:r: 0 0 0::

INDEX MAP NOT TO SCALE

WILSON

Legend � New Tra nsm ission Main

CP 7025 - New Well 48 Transmission Main

� � Cucamonga Valley� � District Service Beyond &pectation

STAFF REPORT



To: From:

Date: January 23, 20 1 8 Board of Di rectors A • .---.. __-Martin E. Zvirbul is, General Manager/CEO 'VI.! y

Agenda Title: Investment Policy Review

Purpose Staff and PFM Asset Management have reviewed the I nvestment Pol icy 1 .4 to deter"mine if any changes are needed. Only minor formatting and wording changes have been recommended.

Background/ Analysis Periodic reviews of financial pol ic ies are important to ensure that pol ic ies are relevant and up-to-date with industry practices and legal provis ions. Staff is propos ing m inor admin istrative amendments to the existing Pol icy 1 .4, which is codified in District Code Chapter 3 . 1 0. The fol lowing are h ighl ights of the recommended changes:

Add a restriction that neither the investment advisor nor District management may take possession of the District's cash or securities. This best practice is al ready in place and should be codified by adding the provision.

Remove a dupl icated provision from Section 5 - Prudence that requ ires annual review of the pol icy. This provision is contained in Section 1 5 - Pol icy Adoption and Review.

I nclude the revision of wording in several places that reference a min imum requ ired rating that a security must possess for the District to be al lowed to purchase it. The current phrasi ng is, "securities that have a long-term debt rating of at least "A", or its equivalent. . ." This phrasing would be changed to, "securities rated in a rating category of "A" or its equivalent or better . . . " The change is m inor but wi l l make the Pol icy language consistent with Cal iforn ia Government Code.

Alignment with Strategic Goals A key element to the District's vision is to promote good stewardsh ip of financial resources through accountabi l ity. A thorough pol icy provides oversight of the fiduciary responsib i l ities of District staff and PFM Asset Management.

Fiscal Impact There is no immediate cost as a result of the recommended changes to the I nvestment Pol icy.

Recommendation It is recommended the Board of D irectors adopt Resol ution No. 20 1 8-0 1 -0 I amending Administrative Pol i cy 1 .4 - Investment Policy. The F inance Committee reviewed thi s pol icy on January I I , 20 1 8.

January 23, 20 1 8 Investment Policy Review Page 2

Attachments: Policy 1 .4 Investment Policy (redline) Memorandum from PFM Investment Advisors

Submitted by: Carrie Corder, Assistant General Manager/CFO Prepared by: Chad Brantley, Finance Manager

! ! Cucamonga Val ley"' � District ADM I N ISTRATIVE POLICY MAN U A L


-

PO LICY NO. 1 .4 I nvestment Pol icy

-

DISTRICT CODE

C h a pter 3 . 1 0

Sections 3 . 1 0 .0 1 0 - 3. 1 0. 1 60

SECTION 1 : I NTRODUCTION (3. 1 0.0 1 0) SECTION 2: SCOPE (3. 1 0.020) SECTION 3: I NVESTMENT OBJ ECTIVES (3. 1 0.030) SECTION 4: DELEGATION OF AUTHORITY (3. 1 0.040) SECTION 5: PRUDENCE (3. 1 0.050) SECTION 6: I NTERNAL CONTROLS (3. 1 0.060) SECTION 7: ETH ICS AN D CONFLICTS OF I NTEREST (3. 1 0.070) SECTION 8: AUTHORIZED B ROKER-DEALERS (3. 1 0.080) SECTION 9: SAFEKEEPI N G OF SECURITIES (3. 1 0.090) SECTION 1 0: AUTHORIZED I NVESTMENTS (3. 1 0. 1 00)

APP ROVAL DATE

EF FECTIVE DATE

D RAFT

SECTION I I : DIVERSIFI CATION AND MAXI M U M MATURITI ES (3. 1 0. 1 1 0) SECTION 1 2: PROHI BITED I NVESTM ENTS (3. 1 0. 120) SECTION 1 3 : PERFORMANCE (3. 1 0. 130) SECTION 1 4: I NVESTMENT REPORTIN G (3. 1 0. 1 40) SECTION 1 5 : POLICY ADOPTION AND REVIEW (3. 1 0. 1 50) SECTION 1 6: GLOSSARY OF TERMS (3. 1 0. 1 60)

SECTION I : I NTRODUCTION (3. 1 0.0 I 0) The purpose of th is investment pol icy ("Pol icy") is to provide guide l ines for the prudent investment of the Cucamonga Valley Water District's (" District") funds in conformance with Cal ifornia Government Code requ irements govern ing the investment of publ ic funds. Funds wi l l be managed to provide for dai ly cash flow requirements and to meet the objectives of th is Pol icy.

SECTION 2: SCOPE (3. 1 0.020) This Pol icy appl ies to al l operating funds of the D istrict, which are under the control of the General Manager/CEO and/or the Assistant General Manager/Ch ief Financial Officer (AG M/CFO). These funds are accounted for in the Cucamonga Val ley Water District's Comprehensive Annual F inance Report (CAFR). The investment of reti rement-related funds is addressed in District Pol icy 1 .6.

Bond proceeds shal l be invested in securities permitted by the appl icable bond documents. If the bond documents are s i lent as to the permitted i nvestments, bond proceeds wi l l be i nvested in the securities permitted by this Pol icy. Notwithstand ing the other provisions of this Pol icy, the percentage or dol lar portfol io l imitations l isted elsewhere in this Pol icy do not apply to bond proceeds.

SECTION 3: INVESTMENT OBIECTIVES (3. 1 0.030) A. As specified in Government Code Section 53600.5, when investing, reinvesting, purchasing,

acqu iring, exchanging, sel l ing and managing publ ic funds, the primary objectives, in priority order, of the District's investment activities and of thi s Pol icy shal l be:

Page I of 1 2

ADM I N ISTRATIVE POliCY MAN UAL

POLICY N O . 1 .4 , I N V ESTM ENT P O L I C Y

a. Safety: Safety of principal is the District's foremost investment objective of the investment program. I nvestments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overal l portfol io. To attain th is objective, the District wi l l d iversify its investments by investing funds among independent financial institutions offering a variety of securities with independent returns. Investments shall be made with the aim of avoid ing capital losses due to issuer default, broker-dealer default or market value erosion.

b. Liqu idity: The investment portfol io wi l l remain sufficiently l iquid to enable the District to meet all operating requirements which are reasonably anticipated.

c. Yield: The D istrict's investment portfol io shal l be designed with the objective of attain ing a market rate of return throughout budgetary and economic cycles, as long as it does not d imin ish the objectives of Safety and Liquid ity.

SECTION 4: D ELEGATION OF AUTHORITY (3. 1 0.040) The authority of the District's Board of Directors ("Board") to invest or reinvest funds of the District is delegated by Board Resolution in conjunction with the annual investment pol icy review. Management responsibi l ity for the investment program is hereby delegated to the AG M/CFO who shall be responsib le for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials, and their procedures in the absence of the AG M/CFO. The AG M/CFO shal l establ ish procedures for the management of i nvestment activities, includ ing the activities of staff consistent with this Pol icy.

The AG M/CFO may retain the services of an outside investment advisor or manager as approved by the Board to ass ist with the District's investment program. Qual ified outside managers wi l l be either SEC Registered Investment Advisors or Bank Money Managers. The investment advisor shal l make all i nvestment decisions and transactions in strict accordance with State and Federal law, this Pol icy and such other written instructions as are provided. The investment advisor or manager may not take possession of the D istrict's cash or securities. The performance and service levels of investment advisors and managers shall be reviewed annual ly.

SECTION 5: PRUDENCE (3. 1 0.050) Al l participants in the investment process shal l recognize that the investment program is subject to publ ic review and evaluation. The overal l program shal l be designed and managed with a degree of professional ism worthy of the publ ic trust. The standard of prudence to be used by the District shal l be the "prudent investor" standard and shall be applied in the context of managing the overal l portfol io. The AGM/CFO and the delegated investment officers, acting in accordance with written procedures and th is Pol icy and exerc is ing due d i l igence, shal l be rel ieved of personal responsibi l ity for an ind ividual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

I nvestments shal l be made with j udgment and care, under c ircumstances then preva i l ing, which persons of prudence, discretion and i ntel l igence exercise in the management of their own affairs,

Page 2 of 1 2

ADMINISTRATIVE POLICY MANUAL

P O LI C Y N O . 1 .4 , I N V ESTMENT P O LI C Y

not for specu lation, but for investment, considering the probable safety of thei r capital as well as the probable i ncome to be derived.

The AGM/CFO shall review the in•1estment policy on an annual basis and submit the policy to the District's Finance Committee and Board for review and approval. SECTION 6: I NTERNAL CONTROLS (3. 1 0.060) The AG M/CFO shal l establ ish a system of internal controls designed to prevent losses due to fraud, employee error, m isrepresentation by th ird parties, unantic ipated market changes, and/or imprudent actions by employees of the District. The internal control structure shal l be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that ( I ) the cost of a control should not exceed the benefits l ikely to be derived and (2) the valuation of costs and benefits requ ires estimates and j udgments by management. Compl iance with th is Pol icy and internal controls shal l be reviewed annual ly by the District's independent, external aud itors.

SECTION 7: ETH ICS AN D CONFLICTS OF I NTEREST (3. 1 0.070) Officers and employees involved in the investment process shal l refrain from personal business activity that could confl ict with proper execution of the investment program, or which cou ld impair their abi l ity to make impartial investment decisions. Employees and investment officials shal l d isclose to the District's General Manager/CEO any material financial interest in the financial institutions that conduct business with the District and they shal l further disclose any large personal financial/investment positions that could be related to the performance of the District.

SECTION 8: AUTHORIZED BROKER-DEALERS (3. 1 0.080) A competitive process, whenever practical, wi l l be used for investment transactions. For any investment transaction not conducted d irectly with the issuer, it shal l be the District's pol icy to purchase securities only from authorized institutions and firms. No deposit of publ ic funds shal l be made except in a qual ified publ ic depository as establ ished by state laws.

If the District plans to in itiate investment transactions on its own behalf, excluding bank deposits and investments made d irectly with an issuer, +the AG M/CFO shal l maintain a l ist of authorized broker/dealers and financial institutions that are approved for investment purposes. All financial institutions and broker/dealers who desire to become qual ified for investment transactions must supply the fol lowing as appropriate and deemed by the District:

a. Must be in business for at least three (3) years

b . Proof of Financial Industry Regulatory Authority (FINRA) certification (not appl icable to Certificate of Deposit counterparties)

c. Proof of state registration

d . Completed broker/dealer questionnaire (not applicable to Certificate of Deposit counterparties)

e. Certification of having read and understood and agreeing to comply with the District's Pol icy and are free of conflicts of interest

f. Evidence of adequate insurance coverage

Page 3 of 1 2

ADM I N ISTRATIVE POLICY MAN UAL

POLICY NO. 1 .4 , I NV ESTM ENT P O L I C Y

I f the District has contracted with an investment advisor to provide investment services, the i nvestment advisor may use their own l ist of approved issuers, brokers/dealers and financial institutions to conduct transactions on the District's behalf.

SECTION 9: SAFEKEEPI NG OF SECU RITI ES (3. I 0.090) To protect against potential losses by the col lapse of ind ividual securities dealers, a l l trades wi l l be executed on a del ivered versus payment (DVP) basis with the securities to be held in safekeeping by a th ird party custodian, acting as agent for the District under the terms of a custody agreement or a Master Repurchase Agreement. The only exception to the foregoing shall be depository accounts and securities purchases made with: ( i) LAI F and local government investment pools (LG IPs); ( i i ) p lacement certificates of depos it, and, (i i i) money market mutual funds, since the

· purchased securities are not del iverable. Evidence of each these investments will be held by the AG M/CFO. No outside broker-dealer or advisor may have access to the District's funds, accounts or investments. Any transfer of funds hand led through a broker-dealer must be approved by persons identified in the "Delegation of Authority" section of this Pol icy.

SECTION I 0: AUTHORIZED I NVESTMENTS (3. I 0. I 00) The D istrict's investments are governed by the Government Code. With in the investments permitted by the Government Code, the District seeks to further restrict e l igible investment to the investments l isted below. I n the event an apparent d iscrepancy is found between th is Pol icy and the Government Code, the more restrictive parameters wi l l take precedence. Percentage hold ing l imits l isted in this section apply at the time the security is purchased. Ratings, where shown, specify the min imum credit rating category requ ired at p·urchased 'Nithout regard to +/ or I ,2,3 modifiers, if any. In the event a security held by the District is subject to a credit rating change that bri ngs it below the min imum credit ratings specified in this Pol icy, the AG M/CFO should notify the Board of the change. The course of action to be fol lowed wil l then be decided on a case-by-case bas is, considering such factors as the reason for the change, prognosis for recovery or further rate drops, and the market price of the security.

a. U nited States Treasury Issues. United States Treasury notes, bonds, b i l ls, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of princ ipal and interest. There is no l im itation as to the percentage of the portfol io that may be invested in this category.

b. Federal Agency Obligations. Federal agency or United States governmentsponsored enterprise senior debt obl igations, partic ipations, mortgage-backed securities or other instruments, inc lud ing those issued by or fu lly guaranteed as to principal and interest by Federal agencies or United States government-sponsored enterprises. There is no l imitation as to the percentage of the portfol io that may be invested in th is category; however, purchases of callable Federal Agency obl igations are l imited to a maximum of 30 percent of the portfo l io.

c . M unicipal Debt. Registered treasury notes or bonds of this state or any of the other 49 Un ited States, including bonds payable solely out of the revenues from a revenueproducing property owned, control led, or operated by a state or by a department, board, agency, or authority of this state or any of the other 49 United States.

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ADM I N I STRATIVE POLICY MANUAL

POLICY NO. 1 .4 , I N V ESTM ENT P O L I C Y

Bonds, notes, warrants, or other evidences of indebtedness of any local agency, including the District's own bonds, with in this state, including bonds payable solely out of the revenues from a revenue-producing property owned, control led, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

Purchases are l imited to securities that are rated in a rating category of "A" (longterm) and/or "A- I " (short-term) or the ir equivalents or better that have a long term debt rating of at least "A", or its equivalent, by a Nationally Recognized Statistical Rating Organization ("NRSRO"); and/or have short term debt rating of at least "A I" , or its equivalent, by a NRSRO. A maximum of 30 percent of the portfol io may be invested in this category.

d. Medium-Term Notes. Med ium-term notes are defined as a l l corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating with in the United States or by depos itory institutions l icensed by the Un ited States or any state and operating with in the United States. Purchases are l imited to securities rated in a rating category Q[_that have a long term debt rating of at least "A", or its equivalent or better, by a NRSRO. A maximum of 30 percent of the portfol io may be invested in this category.

e. Negotiable Certificates of Deposit. Negotiable certificates of deposit (NCDs) issued by a by a national ly or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federal ly l icensed or state-l icensed branch of a foreign bank. Purchases are l imited to institutions that are rated in a rating category of "A" (long-term) and/or "A- I " (short-term) that have a long·term debt rating of at least "A", or its equivalent, by a NRSRO; and/or have short term debt rating of at least "A I", or its or their equivalents or better equivalent, by a N RSRO . . NCDs for which the fu l l amount of the principal and the interest that may be accrued during the maximum term of each certificate is insured by federal deposit i nsurance are exempt from the rating requ irements. A maximum of 30 percent of the portfol io may be invested in this category.

f. Placement Service Deposits. Deposits placed through a deposit placement servic;e shal l meet the requ irements under Government Code Section 5360 1 .8. The fu l l amount of the principal and the interest that may be accrued during the maximum term of each deposit sha l l at a l l times be insured by federal deposit insurance. A maximum of 30 percent of the portfol io may be invested in th is category.

g. Bank Deposits. FDIC insured or ful ly col lateral ized bank deposits, inc lud ing, but not l imited to, demand deposit accounts, savings accounts, market rate accounts, and time deposits. To be el igible to receive District deposits, the financial institution must be located in Cal ifornia and have received a min imum overall satisfactory rating, under the Community Redevelopment Act, for meeting the credit needs of California Communities in its most recent evaluation. The amount on deposit in any financial institution shall not exceed the shareholder's equity. Bank deposits are required to be col lateral ized as specified under Government Code Section 53630 et. seq. The

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ADMI N ISTRATIVE POLICY MAN UAL

P O LICY NO. 1 .4 , I N V ESTM ENT POL ICY

AG M/C FO, at h is/her discretion, may waive the col lateralization requ irements for any portion that is covered by federal deposit insurance. The District shal l have a signed agreement with any depository accepting District funds per Government Code Section 53649. The maturity of time certificate of deposits (TCDs) may not exceed I year. There is no l imit on the percentage of the portfol io that may be invested in bank deposits. However, a maximum of 20 percent of the portfol io may be invested in TCDs.

h. Commercial Paper. Commercial paper of "prime" qual ity of the highest ranking or of the h ighest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shal l meet a l l of the fol lowing conditions: ( i ) is organized and operating in the United States as a general corporation, ( i i ) has total assets in excess of five hundred m i l l ion dol lars ($500,000,000) , and ( i i i ) has debt other than commercial paper, if any, that is rated in a rating category of at least "A", or its equ ivalent, or h igher by an NRSRO.

El igible commercial paper shall have a maximum maturity of 270 days or less and not represent more than I 0 percent of the outstanding paper of an issu ing corporation. A maximum of 25 percent of the portfol io may be invested in th is category.

i . Banl<ers' Acceptances. Bankers' acceptances, otherwise known as b i l ls of exchange or t ime drafts, that are drawn on and accepted by a commercial bank. Purchases are l im ited to bankers' acceptances i ssued by domesti c or foreign banks, which are el igible for purchase by the Federal Reserve System. Purchases of bankers' acceptances may not exceed 1 80 days maturity. E l ig ible bankers' acceptances are restricted to issu ing financial institutions that have witA-a short-term debt rated in the rat ing category of rating of at least "A- I ' ';-or its equivalent or better, by a N RSRO. A maximum of 25 percent of the portfol io may be invested in th is category.

j. State of California Local Agency Investment Fund (LAI F). There is no l im itation as to the percentage of the portfol io that may be invested i n th is category. However, the amount invested may not exceed the current maximum al lowed by LAI F.

k. Local Government Investment Pools (LG IP). Shares of beneficial i nterest issued by a joint powers authority organ ized pursuant to Government Code Section 6509.7. To be eligible for purchase, the pool shall meet all of the fo l lowing cond itions: (i) must meet the requirements of Cal ifornia Government Code Section 5360 I (p), ( i i ) the pool must seek to maintain a stable Net Asset Value ("NAY") , and ( i i i ) the pool must be rated at least "AAm", or its equ ivalent, or better by a NRSRO. A maximum of SO percent of the portfol io may be invested in this category.

Whenever the District has any funds invested in a Local Governm ent Investment Pools, the AG M/CFO shal l maintain on file a copy of the pool's current information statement. In addition, the AGM/CFO should review the pool's summary portfol io hold ings on a quarterly basis.

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ADM I N I STRATIV E POLICY MAN UAL

POLICY NO. 1 .4, I N V ESTM ENT P O L I C Y

I . Money Market Funds. Shares of benefic ial interest issued by d ivers ified management compan ies that are money market funds registered with the Securities and Exchange Commission.

The company shal l have met either of the fol lowing criteria: (A) attained the h ighest ranking or the h ighest letter and numerical rating provided by not less than two N RSROs and (B) retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds with assets under management in excess of five hundred m i l l ion dol lars ($500,000,000). A maximum of 20 percent of the portfol io may be invested in th is category.

If the District has funds invested in a money market fund, a copy of the fund's information statement shall be maintained on fi le. In addition, the AG M/CFO should review the fund's summary hold ings on a quarterly basis.

m. Repurchase Agreements. Repurchase agreements are to be used as short-term investments not to exceed 90 days. Repurchase agreements shal l only be made on ly with counterparties that are primary dealers of the Federal Reserve Bank of New York or a nationally or state-chartered bank that has or has had a sign ificant banking relationship with the District. Furthermore, the counterparty shal l have the fol lowing qual ifications: (i) a long-term debt rating in a rating category of at least "A", or its equ ivalent, or better by a N RSRO; ( i i ) a short-term credit rating of at least "A- I ", or its equ ivalent, or better by a N RSRO; ( i i i ) m in imum assets and capital s ize of $25 bi l l ion in assets and $350 m i l l ion in capital; ( iv) five years of acceptable audited financial resu lts; and (v) a strong reputation among market participants.

The District shal l have a properly executed master repurchase agreement with each counterparty for which it enters into an agreement for repurchase agreements. Col lateral of at least I 02 percent of market value of principal and accrued interest is required. For any repurchase agreement with a term of more than one day, the value of the underlying securit ies must be reviewed on an on-going basis according to market conditions. Market value must be calculated each time there is a substitution of col lateral. Col lateral is l imited to obl igations of the United States government and its agencies. Col lateral must be del ivered to the District' custodian bank or handled under a properly executed master repurchase agreement. The District, or its trustee, shal l have a perfected first security interest in all col lateral. A maximum of I 0 percent of the portfol io may be invested in th is category.

n . Supranationals. United States dol lar denominated senior unsecured unsubordinated obl igations issued or uncond itional ly guaranteed by the International Bank for Reconstruction and Development, I nternational F inance Corporation, or I nterAmerican Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale with in the Un ited States. Purchases are l im ited to securities that are rated in a rating category of have a long term debt rating of at

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ADMI NISTRATIVE POLICY MAN U A L

P O LI C Y N O . 1 .4, I N V ESTM E NT P O L I C Y

-least-"AA'', or its equivalent, or better by a N RSRO. A maximum of 30 percent of the portfol io may be invested in this category.

S ECTION I I : D IVERSIFICATIO N AND MAXI M U M MATU RITI ES (3. 1 0. 1 1 0) It is the pol icy of the District to divers ify its investment portfol io. Assets shal l be d iversified to e l iminate the risk of loss resu lting from over-concentration of assets i n a specific maturity, a spec ific issuer or a specific class of securities. D iversification strategies shal l be determined and revised periodical ly. Adequate d iversification shall be applied to the ind ividual issuers of debt, both with in each class of investments and col lectively. With the exception, of U .S. Treasuries, Federal Agency securities, LG I Ps, and LAIF, the District's investment in any one issuer is l im ited to 20 percent of the District's surplus funds portfol io.

To the extent possible, the District wi l l attempt to match its investments with anticipated cash flow requirements. The maximum maturity of ind ividual investments shal l not exceed the l im its

. set forth in Section X. Where no maturity l imit is stated, no investment shal l exceed a maturity of five years from the date of purchase un less the Board has granted express authority to make that investment either specifically or as a part of an investment program approved by the Board no less than three months prior to the investment. With respect to maximum maturities, th is Pol icy authorizes investing bond reserve funds beyond five years if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds.

SECTION 1 2: PROH I B ITED I NVESTM ENTS (3. 1 0. 1 20) Section 5360 1 .6 of the Government Code l ists the investments that are prohibited. Prohibited investments shal l i nclude, but are not l imited to, equity securities, inverse floaters, range notes, interest-only strips that are derived from a pool of mortgages, or any i nvestment that could resu lt in zero interest earned if held to maturity.

The purchase of any investment perm itted by the Government Code, but not l i sted as an authorized investment in this Pol icy is prohibited without the prior approval of the Board.

S ECTION 1 3 : PERFORMANCE (3. 1 0. 1 30) The investment performance of the D istrict's operating portfol io shal l be evaluated and compared to an appropriate benchmark in order to assess the success of the i nvestment program relative to the D istrict's Safety, Liqu id ity and Yield objectives. This review wi l l be conducted annual ly with the Board's F inance Committee.

SECTION 1 4: I NVESTME NT REPORTI N G (3. 1 0. 1 40) The AG M/CFO wi l l prepare a monthly report of investment that shal l include a complete description of the portfol io, type of investments, issuers, maturity dates, par values and current market values of each component of the portfol io, l ist of transactions, inc luding funds managed for the District by th ird party contract managers. The report wi l l inc lude a certification that: ( I ) al l investment actions executed s ince the last report have been made in fu l l compl iance with this Pol icy and (2) the report shal l inc lude a statement denoting the abi l ity of the D istrict to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money shal l , or may, not be available.

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ADMIN ISTRATIV E POLICY MANUAL

POLICY NO. 1 .4 , I NV ESTM ENT P O LI C Y

SECTION 1 5 : POLICY ADOPTION AND REVI EW (3. 1 0. 1 50) This Pol icy shal l be adopted by resolution of the Board. Moreover, the Pol icy shal l be reviewed on an annual basis and modifications, if any, must be approved by the Board.

SECTION 1 6: DEFIN ITION OF TERMS GLOSSARY OF TERMS (3. 1 0. 1 60) The fol lowing definitions shal l apply as they relate to th is Pol icy:

AG ENCY SECURITIES: Securities issued by a U.S. government-sponsored entity (GSE) and federally related institutions. Examples of a GSE include: Federal Farm Cred it Bank System (FFCB), Federal Home Loan Bank (FH LB), and Federal Home Loan Mortgage Company (FHLMC-Fredd ie Mac), Federal National Mortgage Association (FNMA-Fannie Mae), and Student Loan Marketing Association (SLMA Sallie Mae). ASKED: The price at which securities are offered.

BANKERS' ACCEPTANCE (BA): A draft, bi l l , or exchange accepted by a bank or trust company. The accepting i nstitution guarantees payment of the bi l l , as well as the issuer.

BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfol io . A benchmark should represent a c lose correlation to the level of risk and the average duration of the portfol io's investments.

BI D: The price offered by a buyer of securities.

BROKER: A broker brings buyers and sel lers together for a commission.

CALLABLE SECU RITY: A security that is redeemable by the issuer before the schedu led maturity. Bonds are usual ly cal led when the interest rates fal l so sign ificantly that the issuer can save money by floating new bonds at lower rates.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate. Large-denomination CO's are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of publ ic monies.

COMPREHENSIVE AN NUAL FINANCIAL REPORT (CAFR): The official annual report of the Cucamonga Val ley Water District. It inc ludes financial statements for each ind ividual fund prepared in . conformity with GAAP. It also inc ludes supporting schedules necessary to demonstrate compl iance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

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ADMINISTRATIVE POLICY MANUAL POLI CY NO. 1 .4, I NVESTM ENT POLICY

DEALER: A dealer, as opposed to a broker, acts as a principal in al l transactions, buying and sell ing for his own account.

DEBENTU RE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT (DVP): The del ivery of securities with an exchange of money for the securities.

DERIVATIVES: ( I ) Financial instruments whose return profile is l inked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).

DISCOU NT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns with the goal of spreading risk throughout the portfolio holdings.

DURATION: A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean fal l ing bond prices, while declining interest rates mean rising bond prices.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits.

LIQU I DITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value.

LOCAL AG ENCY INVESTMENT FUND (LAIF): A voluntary program created by state statute as an investment alternative for California's local governments and Special Districts under the administration of the California State Treasurer's Office. All securities are purchased under the authority of the Government Code Section 1 6430 and 1 6480.4.

LOCAL GOVERN MENT INVESTMENT POOL (LG IP): A state or local government pool offered to public entities for the investment of public funds.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPU RCHASE AG REEMENT: A written contract covering all future transactions between the parties that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower.

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ADMINISTRATIVE POLICY MANUAL POLICY NO. 1 .4, I NVESTM ENT POLICY

· MATU RITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

NATIONALLY RECOG N IZED STATISTICAL RATINGS ORGAN IZATION (NRSRO): A credit rating agency that provides credit ratings that are used by the U.S. government and investors as benchmarks. Examples include Moody's, Standard & Poor's, and Fitch Ratings.

OFFER: The price asked by a seller of securities.

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject · to its informal oversight. Primary dealers includ� Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a f�w unregulated firms.

PRU DENT I NVESTOR STAN DARD : An investment standard to be fol lowed by those authorized to make investment decisions on behalf of a local agency. Those authorized shall. act with care,

. skil l , prudence, and di l igence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of that agency.

QUALIFIED PU BLIC DEPOSITORI ES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liabi lity and which has been approved by the Public Deposit Protection Commission to hold public deposits.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return.

REPURCHASE AGREEMENT (REPO): A holder of securities sells these securities to an investor with an agreem ent to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this.

REVERSE REPU RCHASE AGREEMENT (REVERSE REPO): A reverse-repurchase agreement (reverse repo) involves an investor borrowing cash from a financial institution in exchange for securities. The investor agrees to repurchase the securities at a specified date for the same cash

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ADMINISTRATIVE POLICY MANUAL POLICY NO. 1 .4, I NVESTM ENT POLICY

value plus an agreed upon interest rate. Although the transaction is similar to a repo, the purpose of entering into a reverse repo is quite different. While a repo is a straightforward investment of public funds, the reverse repo is a borrowing.

SAFEKEEPI NG: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection.

SECON DARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECU RITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SUPRANATIONAL: Securities issued or unconditionally guaranteed by multi-lateral international financial institutions whose member nations contribute capital and participate in management.

TREASU RY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASU RY BON DS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than I 0 years.

TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to I 0 years.

YIELD: The rate of annual income return on an investment, expressed as a percentage.

POLICY REVISION DATES

02/23/20 1 6 (Resolution No. 20 1 6- 1 0- 1 ) 02/ 1 0/20 1 5 (Resolution No. 20 1 5-2- 1 0) 02/ 1 1 /20 1 4 (Resolution No. 20 1 4-2- 1 ) 02/ 1 2/20 1 3 (Resolution No. 20 1 3-2- 1 ) 1 2/ 1 3/20 I I (Resolution No. 20 I 1 - 1 2- 1 ) I 1 /23/20 I 0 (Resolution No. 20 I 0- 1 1 - 1 ) 1 2/08/2009 (Resolution No. 2009- 1 2- 1 ) I 1 /25/2008 (Resolution No. 2008- 1 1 -2) 0 1 /09/2007 (Resolution No. 2007- 1 - 1 ) 1 2/ 1 2/2006 08/25/2005 02/ 1 0/2004 (Resolution No. 2004-2- 1 ) 02/05/2002 (Resolution No. 2002-2-2)

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l i I . I I,

I I I I !

' � i l I l ! i � I, I l i ! I

0 pfm

Memorandum To:

From:

Re:

Carrie Corder, CPA, Assistant General Manager/CFO Chad Brantley, CPA, Finance Manager Cucamonga Valley Water District

Richard Babbe, Senior Managing Consultant PFM Asset Management LLC

201 7 Investment Policy Review

January 3, 2 0 1 8

At your request, we reviewed the Cucamonga Valley Water District's (the "District") Investment Pol icy (the "Policy") as part of the Districfs annual review process. As written, the Policy is comprehensive and is in compliance with the California Government Code sections (the "Code") that govern the investment of public funds. Furthermore, we are not aware of any upcoming changes to the Code that would necessitate any changes to the Policy at this time.

Although no changes are required , we are recommending various changes to the Policy that we believe wil l improve its clarity for the reader. Our recommendations are not intended to change any of the Policy's current requirements. Our recommendations are summarized below by Policy section. In addition, we have attached a redlined version of the Policy to i llustrate our recommendations.

Section IV. Delegation of Authority. As it is a best practice and it is the District's current practice, we recommend adding in a provision into this Policy section that states: "The investment advisor or manager may not take possession of the District's cash or securities."

Section V. Prudence. To avoid unnecessary duplication and any potential inconsistencies, we recommend the District remove the requirement that the Policy be reviewed on an annual basis from this section. The District is already required to conduct an annual policy review under Section XV. Pol icy Adoption and Review.

Section VIII. Authorized Broker-Dealers. We recommend the District revise this section to clarify that the Policy only requires the District to maintain an authorized broker-dealer list if it plans to in itiate investment transactions on its own behalf.

Section X. Authorized Investments. Senate Bil l 974, which took effect on January 1 , 201 7, modified Code Sections 53601 et seq. to clarify that the Code's rating requirements specify the minimum credit rating category required at purchase, without regard to "+", "-", or 1 , 2, 3 modifiers.

This Code revision did not change the minimum ratings required by the Code nor the ratings required by the District's Policy. The change simply codified the credit rating interpretation already used by most public agencies including the District.

0 As this Code revision is consistent with the Policy's current language, no changes are required. However, we recommend the District consider updating the Policy to reflect how the rating requirements are now described in the Code. This change would apply to all references to credit ratings in the Policy as i l lustrated by the attached redl ined Policy.

Section XI. Authorized Investments. Diversification and Maximum Maturities. As this was the only section that used the term "Surplus Funds," we recommend changing the reference to "the portfolio," which is how the District's funds are referenced elsewhere in the Policy.

Section XVI. Glossary of Terms. We recommend removing Sallie Mae from the examples of federal agency securities as Congress terminated its federal charter in 2004.

Please let me know if you have any questions.

2

FINANCE COMMITTEE NOTES January 11, 2018

Attendees:

Committee members: Randall Reed (Chair) and Luis Cetina

! ! Cucamonga Valley® Jr8_water Distr ict


Staff members: Carrie Corder, Chad Brantley, Robert Kalarsarinis, and Agnes Boros

Members of the Public:

Cal l to Order:

Public Comment:

Additions/Deletions to the Agenda:

None

5 :00 p.m .

None

None

I . Annual Investment Pol icy Update

• Staff presented minor changes to the District's Operating Portfo l io Investment Policy 1.4. In accordance with the policy, staff reviews it each year to ensure that it is up-to-date and complies with

state law, legal provisions and industry practices.

• The Committee recommended that the amended policy be brought before the full Board of Directors

on January 23, 20 18.

Meeting Adjourned at 5:20 p.m.

Page I

i 8 p.m. i

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