el toro water district | serving the public - respecting

CAPITAL PROJECT / EQUIPMENT STATUS REPORT

June, 2017 I WRP Turbo Blower Project

The blower installation is complete and on-line. The SCE data logging to assess the actual energy savings and determine the final SCE rebate amount is complete. The data has been provided to SCE for analysis.

II WRP Sodium Hypochlorite Storage Tanks & Chemical Metering Pumps

The project is complete.

III Oso Lift Station Improvement Project

The project design effort is underway. The design is expected to be complete in September.

IV Phase II Recycled Water Distribution System Expansion Project

The project is out to bid. A pre-bid meeting was conducted with a select list of qualified general contractors on June 21. Bids are due on July 26. It is anticipated that Staff will provide a recommendation for the award of a construction contract along with contracts for engineering services during construction and construction management services at the August Board meeting. Staff has submitted a package to Third Laguna Hills Mutual and to the Golden Rain Foundation requesting the easements necessary for the project. Staff is working with the Village Maintenance Services staff to provide any information or clarification necessary to facilitate the approval and execution of the project easements. The Request for Proposals to solicit proposals for construction management services for the project has been issued to four construction management firms. The proposals are due on June 30. Staff anticipates presenting a recommendation for a construction management services contract award in August along with the construction contract recommendation.

V Phase III Recycled Water Distribution System Expansion Project

The portion of the MNWD Recycled Water Master Plan applicable to ETWD is essentially complete. Staff is working on a high level project summary that will compare the cost of the various project component preliminary cost estimates to the potential recycled water production. Staff is preparing to make a report to the Board, at a conceptual level, in the near future.

Capital Project Status Report June, 2017 Page 2

VI South Orange County Supply and System Reliability Projects

A. Baker Water Treatment Product Water Conveyance Options

MNWD has contracted with Tetra Tech to perform an evaluation of a potential new turnout on the South County Pipeline that would include a turnout connection dedicated to the ETWD Baker supply. During the interim, MNWD has indicated they are prepared to continue the temporary conveyance of water through the Los Alisos interconnection until such time that the permanent conveyance facilities are complete.

B. Poseidon HB Ocean Desalination Project

OCWD continues to work on preparation of CEQA (EIR) documentation for the project. The process is going slowly. The EIR will consider the impacts of injecting all of the water into the basin. That option would require over 30 new injection wells for which it has been difficult to find appropriate site locations. They are also studying how to construct a new six-mile pipeline to convey water to SOC as they suspect that Met will not allow them to use EOC Feeder No. 2 to convey the product water. This pipeline option will be incorporated into the EIR. The pipeline would be designed to convey 10 mgd (base loaded) to MNWD (4mgd), SMWD (5 mgd) and ETWD (1mgd). Poseidon is working to renew and modify their State Lands Commission permit in August or September and then pursue renewal of their NPDES discharge permit with the Santa Ana Regional Water Quality Control Board in early 2018. It is anticipated that Poseidon will then seek project approval from the Coastal Commission sometime next summer. The Project moving forward is contingent upon:

Poseidon securing the Coastal Commission Permit Poseidon renewing their Regional Water Quality Control Board Permit MWDOC securing a Met LRP ($475/acre foot over a 15-year period) If molecules were to be delivered to South County obtaining Met

approval to introduce product water into East Orange County Feeder No. 2

Met approval of the LRP is subject to Poseidon receiving all applicable regulatory and environmental permits. OCWD and Poseidon have agreed on a non-binding term sheet which will be the basis for negotiating a Water Purchase Agreement.

Capital Project Status Report June, 2017 Page 3

Agreed upon rate between Poseidon and OCWD Met rate plus an escalating surcharge over a 50-year period:

20% first 10 years 15% second 10 years 10% third ten years 5% fourth ten years 0% for the last ten years

There is also a “reopener” to renegotiate based upon actual expenses at 15 years which, is tied to the proposed 15 year Met LRP. OCWD takes delivery at the plant property line and is responsible for design, financing, construction and operation of the delivery system.

EL TORO WATER DISTRICT FINANCIAL REPORT

June 26, 2017

I. Balance Sheet 2 - 3

A. Cash & Investments

1) Mix and Liquidity 4

2) Reserve Analysis 5

3) Change in Reserves 6

4) Bills for consideration 7

5) 401K Plan 8

B. Other balance sheet items

1) A/R aging 9

2) A/P aging 9

II Revenue & Expense 10

A. Analysis of Revenue & Expenses 11

B. Revenues

1) Where the money comes from 12

2) Who the money comes from 12

3) Revenue budget comparison 13

4) Miscellaneous Revenue 14

C. Expenses

1) Where the money goes 15

2) Expense budget comparison 16 - 17

3) Capital expenditures – equipment 18

4) Capital expenditures – projects 18

5/31/17 June 30, 2016(Unaudited) (Audited)

ASSETSCurrent Assets Cash & Investments $6,630,991 $5,601,599 Receivables: Accounts Receivable 3,221,382 2,946,940 Notes Receivable - - Inventories 591,730 642,701 Prepaid Expenses 296,661 181,851 Total Current Assets 10,740,765 9,373,092

Restricted Assets Cash & Investments 10,783,934 11,412,090 Total Restricted Assets 10,783,934 11,412,090

Non-Current Assets Utility Plant: Land & Easements 7,451,585 7,451,585 Long Term Leases 342,382 342,382 Equipment 94,991,417 93,445,286 Collection & Impound Reservoirs 6,243,706 6,243,706 Structure & Improvements 34,576,959 34,536,438 Total Utility Plant 143,606,050 142,019,398 Less Accumulated Depreciation & Amortization (66,216,743) (62,864,049)

Net Utility Plant 77,389,308 79,155,349

Construction Work in Progress 17,818,820 15,878,845 Notes Receivable - - Unamortized Bond Cost - 30,870 Total Non-current Assets 95,208,127 95,065,065

TOTAL ASSETS $116,732,826 $115,850,247

Page 2

EL TORO WATER DISTRICTBALANCE SHEET

5/31/17 June 30, 2016(Unaudited) (Audited)

LIABILITIES and EQUITYLiabilities Current Liabilities Payable Accounts Payable $1,449,533 $1,858,177 Current Portion of Long-Term Debt 210,576 1,338,388 Other Current Liabilities 6,680,680 6,770,022

Total Current Liabilities Payable From Current Assets 8,340,790 9,966,587

Long Term Debt Long Term Debt 37,542,443 36,389,496

Total Long Term Debt 37,542,443 36,389,496

Total Liabilities 45,883,232 46,356,082

Fund Equity Retained Earnings - Reserved 22,174,300 22,174,300 Contributed Capital 8,744,767 8,744,767 Retained Earnings - Unreserved 38,615,382 38,557,679 Net Income 1,315,144 17,419 Total Fund Equity 70,849,593 69,494,164

Total Liabilites & Fund Equity $116,732,826 $115,850,247

Page 3

EL TORO WATER DISTRICTBALANCE SHEET

CASH & INVESTMENTSSUMMARY OF INVESTMENTS BY TYPE

Market Value Financial YTM Original Cost

Maturity Dates Par 5/31/17 Institution 5/31/17 5/31/17

State Local Agency Investment Fund NA NA $7,544,029 LAIF 0.93% $7,544,029

US Treasury N/B - Coupon Rate 1.500% 2/28/2019 560,000 562,231 US Bank/CAMP 1.15% 565,731

Intl BK Recon & Dev Notes - Coupon Rate 1.875% 4/21/2020 90,000 90,713 US Bank/CAMP 1.90% 89,922

Inter-American Devel BK Note - Coupon Rate 1.625% 5/12/2020 150,000 150,069 US Bank/CAMP 1.70% 149,645

FHLB Notes - Coupon Rate 0.625% 8/7/2018 800,000 794,266 US Bank/CAMP 0.92% 795,744

FHLB Global Note- Coupon Rate 0.875% 10/1/2018 720,000 716,412 US Bank/CAMP 0.94% 719,143

FNMA Benchmark Note - Coupon Rate 1.000% 2/26/2019 900,000 895,079 US Bank/CAMP 1.21% 894,429

FHLMC Reference Note- Coupon Rate 0.875% 7/19/2019 800,000 791,786 US Bank/CAMP 1.08% 795,616

FMMA Notes - Coupon Rate 1.000% 8/28/2019 950,000 941,944 US Bank/CAMP 1.10% 947,435

FMMA Notes - Coupon Rate 1.500% 2/28/2020 200,000 200,177 US Bank/CAMP 1.52% 199,872

JP Morgan Chase Notes - Coupon Rate 6.000% 1/15/2018 250,000 256,576 US Bank/CAMP 1.79% 272,010

John Deere Capital Corp. - Coupon Rate 1.650% 10/15/2018 50,000 50,075 US Bank/CAMP 1.69% 49,968

Toyota Motor Credit Corp. - Coupon Rate 1.700% 1/9/2019 150,000 150,278 US Bank/CAMP 1.72% 149,948

US Bankcorp (Callable) Notes - Coupon Rate 2.200% 4/25/2019 150,000 151,568 US Bank/CAMP 1.47% 152,727

Pepsico Inc. - Coupon Rate 1.550% 5/2/2019 50,000 50,035 US Bank/CAMP 1.59% 49,963

American Express Credit - Coupon Rate 1.875% 5/3/2019 50,000 50,041 US Bank/CAMP 1.90% 49,980

American Honda Finance - Coupon Rate 1.200% 7/12/2019 150,000 148,426 US Bank/CAMP 1.48% 148,887

Cisco Systems Notes - Coupon Rate 1.400% 9/20/2019 150,000 149,196 US Bank/CAMP 1.42% 149,931

American Express Credit Corp. - Coupon Rate 1.700% 10/30/2019 100,000 99,475 US Bank/CAMP 1.99% 99,240

BB&T Corp. Note - Coupon Rate 2.450% 1/15/2020 100,000 101,373 US Bank/CAMP 2.08% 101,053

Morgan Stanley Corp. Bonds - Coupon Rate 2.650% 1/27/2020 40,000 40,516 US Bank/CAMP 2.35% 40,346

IBM Corp. Notes - Coupon Rate 1.900% 1/27/2020 100,000 100,228 US Bank/CAMP 1.93% 99,904

Microsoft Corp. Note - Coupon Rate 1.850% 2/6/2020 90,000 90,442 US Bank/CAMP 1.87% 89,940

Apple Inc. Bonds - Coupon Rate 1.900% 2/7/2020 80,000 80,464 US Bank/CAMP 1.92% 79,961

Chevron Corp Notes - Coupon Rate 1.991% 3/3/2020 70,000 70,317 US Bank/CAMP 1.99% 70,000

Walt Disney Corp Notes - Coupon Rate 1.95% 3/4/2020 20,000 20,111 US Bank/CAMP 1.96% 19,995

Exxon Mobil Corp Note - Coupon Rate 1.912% 3/6/2020 90,000 90,517 US Bank/CAMP 1.75% 90,402

John Deere Capital Corp. - Coupon Rate 2.200% 3/13/2020 40,000 40,398 US Bank/CAMP 2.23% 39,969

Apple Inc. Bonds - Coupon Rate 1.800% 5/11/2020 60,000 60,061 US Bank/CAMP 1.84% 59,939

Intel Corp Notes - Coupon Rate 1.850% 5/11/2020 90,000 90,208 US Bank/CAMP 1.86% 89,966

Bank of Tokyo Mitsubishi - Coupon Rate 0.000% 1/26/2018 150,000 148,574 US Bank/CAMP 1.54% 148,296

Canadian Imperial Bank NY CD - Coupon Rate 1.760% 11/30/2018 250,000 251,427 US Bank/CAMP 1.25% 250,320

Svenska Handelsbanken NY LT CD - Coupon Rate 1.890% 1/10/2019 200,000 199,680 US Bank/CAMP 1.91% 200,000

Bank of Montreal Chicago CD - Coupon Rate 1.880% 2/7/2019 180,000 181,331 US Bank/CAMP 1.90% 180,000

Bank of Nova Scotia Houston LT CD - Coupon Rate 1.910% 4/5/2019 180,000 180,120 US Bank/CAMP 1.91% 180,000

Sumitomo Mitsui Bank CD - Coupon Rate 2.050% 5/3/2019 180,000 180,218 US Bank/CAMP 2.05% 180,000

Nissan ABS 2015-A A3 - Coupon Rate 1.050% 10/15/2019 14,573 14,547 US Bank/CAMP 1.28% 14,505

CNH Equipment Trust Pool -Coupon Rate 1.640% 7/15/2020 190,000 190,574 US Bank/CAMP 1.80% 189,993

TAOT 2017-A A3 - Coupon Rate 1.730% 2/15/2021 50,000 50,119 US Bank/CAMP 1.74% 49,994

JDOT 2017-A A3 - Coupon Rate 1.780% 4/15/2021 30,000 30,085 US Bank/CAMP 1.79% 29,996

TAOT 2017-B A3 - Coupon Rate 1.760% 7/15/2021 100,000 100,311 US Bank/CAMP 1.76% 99,992

HAROT 2017-1 A3 - Coupon Rate 1.720% 7/21/2021 40,000 40,095 US Bank/CAMP 1.72% 39,998

HART 2017-A A3 - Coupon Rate 1.760% 8/15/2021 40,000 40,074 US Bank/CAMP 1.76% 39,997

NAROT 2017-A A3 - Coupon Rate 1.740% 8/15/2021 50,000 50,117 US Bank/CAMP 1.74% 49,995

Allya 2017-2 A3 - Coupon Rate 1.780% 8/15/2021 70,000 70,138 US Bank/CAMP 1.79% 69,992

AMXCA 2017-4 A - Coupon Rate 1.640% 12/15/2021 100,000 100,054 US Bank/CAMP 1.65% 99,984

CCCIT 2017-A3 A3 - Coupon Rate 1.920% 4/7/2022 100,000 100,382 US Bank/CAMP 1.82% 100,267

CAMP Money Market Fund NA NA 44,244 US Bank/CAMP 0.97% 44,244

Total Camp Investments 9,005,073 9,029,235

Operational & Non-Interest Bearing Accounts

ETWD General Cash Account NA NA 851,031 Union Bank of Cal. 0.00% 851,031

ETWD Capital Facilities Reserve Account NA NA 19,896 Union Bank of Cal. 0.00% 19,896

ETWD Payroll Account NA NA 0 Union Bank of Cal. 0.00% 0

ETWD Petty Cash Account NA NA 700 Union Bank of Cal. 0.00% 700 $17,420,730 Total Investments & Cash $17,444,892

$ % $ %DEMAND 8,459,901$ 48.50% 8,206,309$ 48.11%30 Days -$ 0.00% -$ 0.00%31-180 Days -$ 0.00% 992,740$ 5.82%181 - 360 420,306$ 2.41% 4,828,443$ 28.30%361-1200 Days 8,564,684$ 49.10% 3,031,240$ 17.77%TOTAL 17,444,892$ 100.00% 17,058,732$ 100.00%

All investment actions since the prior report have been executed in full compliance with the District’s Investment Policy and in accordance with California Government Code Sections 53646 (b) (2) and (3) requiring sufficient cash reserves for six months of District operations.

LIQUIDITYMay 31, 2017 June 30, 2016

State Local Agency Invest Fund44%

Federal Notes/Money Mkt Funds52%

Operational & Non-Interest4%

St. Local Agency Invest. Fund42%

Notes/Money Mkt Funds53%

Operational & Non-Interest Accts.

5%

June 16

May17

Restricted ReserveBoard Designated Capital Cash Flow/ ComplianceTotal

Restricted Reserve

Total

Board Mandated Minimum Reserve Levels

Capital ConstructionRate StabilizationOperationsWorking CapitalTotal

Six months operating expense requirement: $11,049,612Cash less restricted reserve on hand:

Page 5

EL TORO WATER DISTRICTRESERVE ANALYSIS

31-May-17

4,283,934$ 8,500,000$ 4,660,958$

17,444,892$

1,775,158$

2,000,000$ 8,500,000$

3,000,000$ 2,200,000$

Baker Funding 885,018$ 4,283,934$

$13,160,958

SRFL-Recycled 1,602,958$

1,300,000$

Capital Facilities Reserve 20,800$ Tiered Cons Fund

Restricted Reserve 4,283,934

24%

Board Mandated 8,500,000 49%

Working Capital 4,660,958

27%

Reserves

May 31, 2017 Year to Date June 30, 2016

Operating Revenue 2,228,931 22,040,283 22,976,436 Non-operating Revenue 125,654 1,368,084 1,429,646

Total Revenue 2,354,585 23,408,367 24,406,082

Operating Expenses 1,915,778 18,111,634 20,619,421 Depreciation 317,888 3,496,768 3,371,563 Non-operating Expenses 44,075 484,821 397,680

Total Expenses 2,277,741 22,093,223 24,388,663

NET INCOME 76,844 1,315,144 17,419

Non-Cash Items:Add: Depreciation 317,888 3,496,768 3,371,563 Change in Notes Receivable/Grant Fund - - - Loan Proceeds - 1,352,912 2,346,224 Less: Debt Service - - (365,703) Capital Improvements (98,667) (3,525,801) (8,112,196)

Total Non-Cash Items 219,221 1,323,880 (2,760,112)

CHANGE IN RESERVES 296,065 2,639,024 (2,742,693)

EL TORO WATER DISTRICTCHANGE IN RESERVES

Page 6

EL TORO WATER DISTRICTCash Sheet

For the month ending May 31, 2017

CHECK PAYMENT PAYMENT NUMBER DATE VENDOR NAME AMOUNT

83148 05/11/2017 MUNICIPAL WATER DISTRICT OF ORANGE CO. 383,503.45 83143 05/11/2017 IRVINE RANCH WATER DISTRICT 201,404.06 83126 05/11/2017 ACWA HEALTH BENEFITS AUTHORITY 106,794.42

TOTAL CHECKS OVER $50,000 691,701.93$

TOTAL CHECKS IN REGISTER 1,104,747.65$

INTERBANK WIRES / DEBIT TRANSFERS05/12/2017 PAYROLL DIRECT DEPOSIT 132,604.27 05/12/2017 FEDERAL DEPOSIT LIABILITY 35,516.43 05/12/2017 SDI & STATE TAX 12,202.67 05/12/2017 WAGE GARNISHMENTS 585.00 05/12/2017 PRUDENTIAL (401K) 56,451.03 05/12/2017 PRUDENTIAL (457) 20,986.62 05/15/2017 PAYROLL BOARD OF DIRECTOR 4,407.44 05/15/2017 SS, MEDICARE, SDI & STATE TAX 1,273.96 05/15/2017 PRUDENTIAL (457) 2,653.20 05/26/2017 PAYROLL DIRECT DEPOSIT 131,164.62 05/26/2017 FEDERAL DEPOSIT LIABILITY 30,379.64 05/26/2017 SDI & STATE TAX 10,305.61 05/26/2017 WAGE GARNISHMENTS 585.00 05/26/2017 PRUDENTIAL (401K) 47,468.00 05/26/2017 PRUDENTIAL (457) 16,605.20 05/31/2017 ADP AND BANK FEES 4,559.19

TOTAL INTERBANK WIRES / DEBIT TRANSFERS 507,747.88$

TOTAL DISBURSEMENTS 1,612,495.53$

ETWD EMPLOYEESCHECK PAYMENT PAYMENT

NUMBER DATE PAYEE (DESCRIPTION) AMOUNT

83078 05/04/2017 CHAU VUONG (Expense Reimbursement) 267.93 83222 05/25/2017 NADIA REESMAN (Expense Reimbursement) 120.90 83159 05/11/2017 STEVEN HANCOCK (Expense Reimbursement) 113.79 83144 05/11/2017 JAKE F. KNOKE (Expense Reimbursement) 80.00 83231 05/25/2017 STUART KAIN (Expense Reimbursement) 60.00 83186 05/18/2017 NADIA REESMAN (Expense Reimbursement) 44.94 83147 05/11/2017 MARC AVILA (Expense Reimbursement) 43.00

TOTAL CHECKS TO EMPLOYEES 730.56$

ETWD DIRECTORSCHECK PAYMENT PAYMENT

NUMBER DATE PAYEE (DESCRIPTION) AMOUNT

No Activity

TOTAL CHECKS TO DIRECTORS -$

Growth Port.Under 40 yrs. Old

Balanced Port.40 to 50 yrs. Old

Income & Growth50 to 60 yrs. Old

Capital Pres. PortOver 60 yrs. Old

Balance at July 1, 2016 845,440.34$ $3,282,362.83 $10,091,872.46 $3,832,464.39

Contributions 231,590.56 139,770.97 571,372.25 184,108.15

Withdrawals 0.00 0.00 (1,369,839.90) (260,720.00)

Transfers 0.00 (1,411,669.31) 1,336,999.59 74,669.72

Interest, dividends and appreciation net of fees and charges 142,993.19 286,021.29 952,958.39 173,505.59

Balance at May 31, 2017 1,220,024.09$ $2,296,485.78 $11,583,362.79 $4,004,027.85

Average return YTD May 31, 2017 11.72% 12.45% 8.23% 4.33%

MARKET VALUE SUMMARY

Page 8

Average return is calculated by dividing the interest, dividends and appreciation, net of fees by ending fund balance and then annualize.

EL TORO WATER DISTRICT401K PLAN SUMMARY

Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17

Series1 $19,075,463 $19,312,781 $19,697,689 $19,934,946 $20,172,401 $19,103,901

$18,400,000.00

$18,600,000.00

$18,800,000.00

$19,000,000.00

$19,200,000.00

$19,400,000.00

$19,600,000.00

$19,800,000.00

$20,000,000.00

$20,200,000.00

$20,400,000.00

401K PLAN MARKET VALUE

Bad Debts Year to Date:

Year to Date Discounts Taken: $1,269

$0

RECEIVABLES & PAYABLES AGEING

Page 9

0-30 Days 31-60 Days 61-90 Days 91-120 DaysOver 121

Days

Balance $1,585,332 $57,144 $481 $1,117 $28,241

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

Receivables as of 5/31/17

0-30 Days 31-60 Days 61-90 Days 91-120 DaysOver 121

Days

Balance $1,449,533

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

Accounts Payable as of 5/31/17

El Toro Water District

Income Statement May 2017

May 17 Budget % of Budget Jul '16 - May 17 YTD Budget % of Budget Annual Budget

Income

4600 · Water Service Charge 234,551.57 238,750.00 98.24% 2,569,986.66 2,626,250.00 97.86% 2,865,000.00

4700 · Sanitary Service 611,001.83 620,833.33 98.42% 6,740,539.81 6,829,166.67 98.7% 7,450,000.00

4722 · Recycled Water Tertiary Sales 213,527.87 135,153.55 157.99% 1,353,056.38 1,305,454.92 103.65% 1,444,014.00

4724 · Service Charge - Recycled Water 15,696.60 16,166.67 97.09% 170,760.79 177,833.33 96.02% 194,000.00

4750 · Capital Facilities Charge 250,935.00 250,000.00 100.37% 2,761,251.34 2,750,000.00 100.41% 3,000,000.00

4800 · Commodity Charge 898,609.06 861,970.38 104.25% 8,184,870.41 8,325,815.14 98.31% 9,209,505.00

4950 · Other Operating Income 4,609.42 4,583.33 100.57% 143,888.64 50,416.67 285.4% 55,000.00

4960 · Other Income 21,399.27 34,791.67 61.51% 521,728.05 382,708.33 136.33% 417,500.00

4967 · SMWD 0.00 8,333.33 0.0% 94,528.85 91,666.67 103.12% 100,000.00

4970 · MNWD 0.00 1,750.00 0.0% 21,399.90 19,250.00 111.17% 21,000.00

4980 · Interest Income 20,785.31 4,166.67 498.85% 125,688.93 45,833.33 274.23% 50,000.00

4985 · Changes FMV CAMP 7,226.17 -38,612.38

4986 · Changes FMV LAIF 0.00 -10,430.45

4990 · Property Taxes 76,243.14 66,666.67 114.37% 769,709.92 733,333.33 104.96% 800,000.00

Total Income 2,354,585.24 2,243,165.60 104.97% 23,408,366.85 23,337,728.39 100.3% 25,606,019.00

Gross Profit 2,354,585.24 2,243,165.60 104.97% 23,408,366.85 23,337,728.39 100.3% 25,606,019.00

Expense

5100 · Personnel Cost 667,926.24 624,658.75 106.93% 6,871,416.40 6,871,246.25 100.0% 7,495,905.00

5405 · Water Purchases 683,177.69 726,192.31 94.08% 6,255,669.53 7,016,219.01 89.16% 7,760,674.00

5410 · Electrical Power 85,687.21 84,425.02 101.5% 884,612.56 928,674.98 95.26% 1,013,100.00

5415 · Repair Parts & Materials 49,143.12 30,023.71 163.68% 290,348.22 330,261.29 87.92% 360,285.00

5420 · Equipment Maintenance & Repair 15,760.04 10,226.69 154.11% 116,104.39 112,493.31 103.21% 122,720.00

5425 · Pump Maintenance & Repair 26,390.78 10,875.00 242.67% 106,052.68 119,625.00 88.65% 130,500.00

5430 · Motor Maintenance & Repair 10,631.76 3,291.67 322.99% 21,016.64 36,208.33 58.04% 39,500.00

5435 · Generator Maintenance & Repair 0.00 133.53

5440 · Electrical/Contl Maint & Repair 634.88 3,833.32 16.56% 22,736.38 42,166.68 53.92% 46,000.00

5445 · Meter Maintenance & Repair 0.00 433.33 0.0% 1,434.40 4,766.67 30.09% 5,200.00

5455 · Chemicals 22,864.72 15,329.16 149.16% 175,094.86 168,620.84 103.84% 183,950.00

5460 · Structure Maint & Repair 11,991.55 2,863.34 418.8% 60,909.71 31,496.66 193.39% 34,360.00

5465 · Asphalt Maintenance & Repair 8,810.00 8,958.34 98.34% 99,783.50 98,541.66 101.26% 107,500.00

5470 · Consultants 18,925.50 10,579.17 178.89% 145,991.35 116,370.83 125.45% 126,950.00

5475 · Contractors 112,366.52 103,199.24 108.88% 1,142,071.28 1,135,191.76 100.61% 1,238,391.00

5480 · Engineers 11,912.45 7,291.66 163.37% 54,680.68 80,208.34 68.17% 87,500.00

5482 · Dump Fees 1,457.15 1,666.66 87.43% 16,270.67 18,333.34 88.75% 20,000.00

5485 · Laboratory 1,613.23 1,725.01 93.52% 8,590.37 18,974.99 45.27% 20,700.00

5490 · License & Permits 26,082.05 10,889.60 239.51% 116,366.49 119,785.40 97.15% 130,675.00

5495 · Gas & Oil 7,166.22 8,333.33 86.0% 75,376.04 91,666.67 82.23% 100,000.00

5500 · Equipment Rental 2,740.67 1,100.00 249.15% 17,843.56 12,100.00 147.47% 13,200.00

5505 · Landscaping 3,238.33 7,888.34 41.05% 55,470.79 86,771.66 63.93% 94,660.00

5510 · Small Tools & Equipment 3,023.11 3,408.34 88.7% 34,119.34 37,491.66 91.01% 40,900.00

5515 · Security 1,675.16 1,587.94 105.49% 14,821.39 17,467.06 84.85% 19,055.00

5520 · Operating Supplies 2,503.77 3,958.34 63.25% 46,218.94 43,541.66 106.15% 47,500.00

5525 · Safety Equipment 2,999.43 1,375.01 218.14% 19,703.39 15,124.99 130.27% 16,500.00

5530 · Temporary Help 0.00 7,208.34 0.0% 13,283.47 79,291.66 16.75% 86,500.00

5535 · Other Employee Cost 7,335.98 7,333.33 100.04% 121,549.99 80,666.67 150.68% 88,000.00

5540 · Depreciation 317,888.00 241,666.67 131.54% 3,496,768.00 2,658,333.33 131.54% 2,900,000.00

5545 · Insurance 35,228.81 33,333.33 105.69% 379,365.74 366,666.67 103.46% 400,000.00

5555 · Advertising & Publicity 0.00 208.33 0.0% 0.00 2,291.67 0.0% 2,500.00

5560 · Amortization 570.49 570.83 99.94% 6,275.39 6,279.17 99.94% 6,850.00

5570 · Annual Event 0.00 433.33 0.0% 4,991.54 4,766.67 104.72% 5,200.00

5575 · Audit 3,600.00 2,500.00 144.0% 18,600.00 27,500.00 67.64% 30,000.00

5580 · Bad Debts 0.00 2,083.33 0.0% 0.00 22,916.67 0.0% 25,000.00

5585 · Bank Charges 4,559.19 4,000.00 113.98% 48,381.35 44,000.00 109.96% 48,000.00

5590 · Data Processing Supply & Access 1,568.76 6,666.67 23.53% 9,593.93 73,333.33 13.08% 80,000.00

5595 · Data Processing Equipment 0.00 0.00 0.0% 35,183.78 0.00 100.0% 0.00

5600 · Data Processing Consultants 3,455.00 6,250.00 55.28% 27,109.49 68,750.00 39.43% 75,000.00

5605 · Directors Fees 8,016.00 7,500.00 106.88% 88,188.00 82,500.00 106.9% 90,000.00

5610 · Dues & Memberships 5,072.67 6,666.67 76.09% 64,708.98 73,333.33 88.24% 80,000.00

5615 · Education & Training 945.98 2,458.33 38.48% 21,242.18 27,041.67 78.55% 29,500.00

5620 · Election Expense 0.00 2,500.00 0.0% 27,709.12 27,500.00 100.76% 30,000.00

5625 · Employee Service Awards 0.00 333.33 0.0% 255.96 3,666.67 6.98% 4,000.00

5630 · Software Maintenance & Licenses 25,502.57 4,583.33 556.42% 104,085.89 50,416.67 206.45% 55,000.00

5640 · Interest Expense 44,074.65 84,750.00 52.01% 484,821.15 932,250.00 52.01% 1,017,000.00

5645 · Janitorial 2,853.50 2,775.00 102.83% 31,719.00 30,525.00 103.91% 33,300.00

5650 · Legal 3,557.00 12,500.00 28.46% 128,315.98 137,500.00 93.32% 150,000.00

5655 · Meets, Conventions & Travel 2,015.80 4,166.67 48.38% 30,531.42 45,833.33 66.61% 50,000.00

5657 · Meets, Con & Travel - Directors 3,940.81 0.00 100.0% 28,651.35 0.00 100.0% 0.00

5660 · Office Supplies 25.75 1,500.00 1.72% 22,571.52 16,500.00 136.8% 18,000.00

5670 · Postage 5,866.09 2,625.00 223.47% 15,719.39 28,875.00 54.44% 31,500.00

5675 · Printing & Reproduction 854.02 1,750.00 48.8% 7,646.63 19,250.00 39.72% 21,000.00

5680 · Property Tax 62.89 458.33 13.72% 4,528.06 5,041.67 89.81% 5,500.00

5685 · Public Education & Outreach 11,953.28 23,958.33 49.89% 101,903.74 263,541.67 38.67% 287,500.00

5690 · Publications & Subscriptions 0.00 250.00 0.0% 1,922.95 2,750.00 69.93% 3,000.00

5695 · Communications 8,554.16 6,666.67 128.31% 96,963.39 73,333.33 132.22% 80,000.00

5700 · Utilities 1,517.94 1,500.00 101.2% 17,798.25 16,500.00 107.87% 18,000.00

Total Expense 2,277,740.92 2,163,309.10 105.29% 22,093,222.73 22,824,503.22 96.8% 25,006,075.00

May 17 Budget % of Budget Jul '16 - May 17 YTD Budget % of Budget Annual Budget

Net Income 76,844.32 79,856.50 96.23% 1,315,144.12 513,225.17 256.25% 599,944.00

ANALYSIS OF REVENUES & EXPENSESBUDGET COMPARED TO ACTUAL

FISCAL YEAR 2016/2017

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Budget

Revenue 2,377,094 2,410,524 2,276,237 2,281,506 1,921,705 1,921,679 1,858,253 1,908,524 1,990,204 2,148,838 2,243,166

Expense 2,260,657 2,284,957 2,187,348 2,191,177 1,929,648 1,929,629 1,883,527 1,920,067 1,979,438 2,094,745 2,163,309

Profit/Loss 116,436 125,567 88,889 90,328 (7,943) (7,950) (25,274) (11,543) 10,766 54,093 79,857 0

Actual

Revenue 2,633,310 2,424,146 2,361,007 2,177,934 1,923,543 1,895,352 1,834,080 1,833,019 1,790,494 2,180,984 2,354,585

Expense 2,150,253 2,249,767 2,095,852 1,969,106 1,973,707 2,040,157 1,853,595 1,650,850 1,855,521 2,034,222 2,277,741

Profit/Loss 483,058 174,379 265,155 208,828 (50,164) (144,804) (19,515) 182,169 (65,027) 146,762 76,844 0

Page 11

(200,000)

(100,000)

0

100,000

200,000

300,000

400,000

500,000

600,000


Do

llars

ANALYSIS OF REVENUE & EXPENSEFiscal Year 2016/2017

WATER REVENUE YTD 2016/2017 WASTE WATER REVENUE YTD 2016/2017

Page 12

WHO THE MONEY COMES FROM

EL TORO WATER DISTRICTREVENUES FROM WATER & WASTE WATER SALES AS OF 5/31/17

Single Family 23%

Commercial11%

Condo's4%

Laguna Woods Village22%

Multi-Family

7%

Pvt Fire Systems

1%

Irrigation18%

Other1%

Mobile Homes

2%Recycled

11%Single Family21%

Commercial18%

Condo's5%

Laguna Woods Village38%

Multi-Family14%

Other1%

Mobile Homes

3%

Rates Interest Income Property Taxes Other Non-Rate

Budget YTD $22,014,520 $45,833 $733,333 $544,042

Actual YTD $21,780,465 $125,689 $769,710 $732,503

% of Total 93.05% 0.54% 3.29% 3.13%

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

Where the Money Comes From

EL TORO WATER DISTRICTREVENUE COMPARISON

For the Month Ended May 31, 2017

CURRENT YEAR YEAR MONTH VARIANCE TO DATE TO DATE VARIANCE REMAINING

ACTUAL BUDGET DOLLARS % +/- ACTUAL BUDGET DOLLARS % +/- BUDGET BUDGET From Rates Capital Facilities Charge 250,935$ 250,000$ 935$ 0% 2,693,705$ 2,750,000$ (56,295)$ -2% 3,000,000$ 306,295$ Water sales - Commodity 898,609 861,970 36,639 4% 8,184,870 8,325,815 (140,945) -2% 9,209,505 1,024,635 Water sales - Fixed Meter 234,552 238,750 (4,198) -2% 2,569,987 2,626,250 (56,263) -2% 2,865,000 295,013 Waste water sales 611,002 620,833 (9,832) -2% 6,740,540 6,829,167 (88,627) -1% 7,450,000 709,460 Recycled water tertiary sales 213,528 135,154 78,374 58% 1,420,602 1,305,455 115,147 9% 1,444,014 23,412 Service charge - Recycled water 15,697 16,167 (470) -3% 170,761 177,833 (7,073) -4% 194,000 23,239

TOTAL FROM RATES 2,224,322 2,122,874 101,448 5% 21,780,465 22,014,520 (234,055) -1% 24,162,519 2,382,054

Non-rate Revenue Admin fee 2,519 1,600 919 57% 107,734 17,600 90,134 512% 19,200 (88,534) 48 Hour notice fee 1,980 2,451 (471) -19% 32,160 26,965 5,195 19% 29,416.44 (2,744) Restoration fee - 370 (370) -100% 1,910 4,070 (2,160) -53% 4,440 2,530 Unpaid check fee 110 150 (40) -27% 1,585 1,650 (65) -4% 1,800 215 Cut lock fee - 12 (12) -100% 500 132 368 279% 144 (356)

TOTAL NON-RATE 4,609 4,583 26 1% 143,889 50,417 93,472 185% 55,000 (88,888)

Other Revenue Interest 20,785 4,167 16,619 399% 125,601 45,833 79,768 174% 50,000 (75,601) Change FMV Investment 7,226 - 7,226 0% (48,955) - (48,955) 0% - 48,955 Property taxes 76,243 66,667 9,576 14% 769,710 733,333 36,377 5% 800,000 30,290 Other 21,399 34,792 (13,393) -38% 521,728 382,708 139,020 36% 417,500 (104,228)TOTAL OTHER REVENUE 125,654 105,625 20,029 19% 1,368,084 1,161,875 206,209 18% 1,267,500 (100,584)

Contract Service Santa Margarita W. D. - 8,333 (8,333) -100% 94,529 91,667 2,862 3% 100,000 5,471 Moulton Niguel W. D. - 1,750 (1,750) -100% 21,400 19,250 2,150 11% 21,000 (400)TOTAL CONTRACT SERVICES - 10,083 (10,083) -100% 115,929 110,917 5,012 5% 121,000 5,071

TOTAL REVENUE 2,354,585$ 2,243,166$ 111,420$ 5% 23,408,367$ 23,337,729$ 70,638$ 0% 25,606,019$ 2,197,653$

May-17 May-17 Jul 16-May 17 Jul 16-May 17Actual Budget YTD Actual YTD Budget

Site Leases 19,099 15,000 171,658 165,000

MWD Recycled Water LRP Rebate 1,750 19,792 199,250 217,708

SOCWA Refund - 138,119 -

MWDOC RPOI Distribution - - 223 -

Recycled Metal - - 5,520 -

Diesel Fuel Tax Refund - - 110 -

Sale of District Vehicle - 1,556 -

Misc Work for Customers 550 - 5,292 -

21,399$ 34,792$ 521,728$ 382,708$

Other Operating Income

Sales to Santa Margarita - - Sales to Moulton Niguel - -

- -

Total 21,399 521,728

Page 14

EL TORO WATER DISTRICTNON-RATE REVENUE ANALYSIS

FOR THE MONTH ENDING May 31, 2017

WHERE THE MONEY GOES

Page 15

Purchased Water33%

Personnel31%

Interest1%

Electrical Power4%

Outside Contractors (SOCWA)

5%

Repair parts & materials1%

Insurance2%

Consultants0%

Chemicals1%

Other22%

EXPENSES YEAR ENDING 6/30/16

Purchased Water28%

Personnel31%

Interest2%

Electrical Power4%

Outside Contractors (SOCWA)

5%

Repair parts & materials1%

Insurance2%

Consultants1%

Chemicals1%

Other25%

YTD EXPENSES AT 5/31/17

EL TORO WATER DISTRICTExpense Comparison


CURRENT YEAR YEAR MONTH VARIANCE TO DATE TO DATE VARIANCE Annual REMAINING

ACTUAL BUDGET DOLLARS % +/- ACTUAL BUDGET DOLLARS % +/- BUDGET BUDGETOperating Expenses

Personnel cost $667,926 $624,659 ($43,267) -7% $6,871,416 $6,871,246 ($170) 0% $7,495,905 624,489 Purchased water 683,178 726,192 43,015 6% 6,255,670 7,016,219 760,549 11% 7,760,674 1,505,004 Electrical power 85,687 84,425 (1,262) -1% 884,613 928,675 44,062 5% 1,013,100 128,487 Repair parts & materials 49,143 30,024 (19,119) -64% 290,348 330,261 39,913 12% 360,285 69,937 Equipment repairs & maintenance 15,760 10,227 (5,533) -54% 116,104 112,493 (3,611) -3% 122,720 6,616 Pump repairs & maintenance 26,391 10,875 (15,516) -143% 106,053 119,625 13,572 11% 130,500 24,447 Motor repairs & maintenance 10,632 3,292 (7,340) -223% 21,017 36,208 15,192 42% 39,500 18,483 Generator repairs & maintenance - - 0 0% 134 0 (134) 0% 0 (134) Electrical repairs & maintenance 635 3,833 3,198 83% 22,736 42,167 19,430 46% 46,000 23,264 Meter repairs & maintenance - 433 433 100% 1,434 4,767 3,332 70% 5,200 3,766 Chemicals 22,865 15,329 (7,536) -49% 175,095 168,621 (6,474) -4% 183,950 8,855 Structure repairs & maintenance 11,992 2,863 (9,128) -319% 60,910 31,497 (29,413) -93% 34,360 (26,550) Asphalt repairs & maintenance 8,810 8,958 148 2% 99,784 98,542 (1,242) -1% 107,500 7,717 Consultants - outside 18,926 10,579 (8,346) -79% 145,991 116,371 (29,621) -25% 126,950 (19,041) Contractors - outside 112,367 103,199 (9,167) -9% 1,142,071 1,135,192 (6,880) -1% 1,238,391 96,320 Engineers - outside 11,912 7,292 (4,621) -63% 54,681 80,208 25,528 32% 87,500 32,819 Dump fees 1,457 1,667 210 13% 16,271 18,333 2,063 11% 20,000 3,729 Laboratories 1,613 1,725 112 6% 8,590 18,975 10,385 55% 20,700 12,110 License & permits 26,082 10,890 (15,192) -140% 116,366 119,785 3,419 3% 130,675 14,309 Automotive fuel & oil 7,166 8,333 1,167 14% 75,376 91,667 16,291 18% 100,000 24,624 Equipment rental 2,741 1,100 (1,641) -149% 17,844 12,100 (5,744) -47% 13,200 (4,644) Landscaping 3,238 7,888 4,650 59% 55,471 86,772 31,301 36% 94,660 39,189 Small tools & equipment 3,023 3,408 385 11% 34,119 37,492 3,372 9% 40,900 6,781 Security 1,675 1,588 (87) -5% 14,821 17,467 2,646 15% 19,055 4,234 Operating supplies 2,504 3,958 1,455 37% 46,219 43,542 (2,677) -6% 47,500 1,281 Safety equipment 2,999 1,375 (1,624) -118% 19,703 15,125 (4,578) -30% 16,500 (3,203) Temporary help - 7,208 7,208 100% 13,283 79,292 66,008 83% 86,500 73,217 Other employee cost 7,336 7,333 (3) 0% 121,550 80,667 (40,883) -51% 88,000 (33,550) Employee service awards - 333 333 100% 256 3,667 3,411 93% 4,000 3,744 Education & training 946 2,458 1,512 62% 21,242 27,042 5,799 21% 29,500 8,258

Total Operating Expenses 1,787,004 1,701,447 (85,557) -5% 16,809,169 17,744,016 934,847 5% 19,463,725 2,654,556

EL TORO WATER DISTRICTExpense Comparison


CURRENT YEAR YEAR MONTH VARIANCE TO DATE TO DATE VARIANCE Annual REMAINING

ACTUAL BUDGET DOLLARS % +/- ACTUAL BUDGET DOLLARS % +/- BUDGET BUDGETIndirect Cost

Depreciation 317,888 241,667 (76,221) -32% 3,496,768 2,658,333 (838,435) -32% 2,900,000 (596,768) Amortization 570 571 0 0% 6,275 6,279 4 0% 6,850 575 Insurance 35,229 33,333 (1,895) -6% 379,366 366,667 (12,699) -3% 400,000 20,634 Data processing supplies & assc. 1,569 6,667 5,098 76% 9,594 73,333 63,739 87% 80,000 70,406 Data processing equipment 0 0 0 0% 35,184 0 (35,184) 0% 0 (35,184) Data processing consultants 3,455 6,250 2,795 45% 27,109 68,750 41,641 61% 75,000 47,891 Software maintenance & licenses 25,503 4,583 (20,919) -456% 104,086 50,417 (53,669) -106% 55,000 (49,086) Janitorial 2,854 2,775 (79) -3% 31,719 30,525 (1,194) -4% 33,300 1,581 Printing & reproduction 854 1,750 896 51% 7,647 19,250 11,603 60% 21,000 13,353 Publications & subscriptions 0 250 250 100% 1,923 2,750 827 30% 3,000 1,077 Communications - voice 2,751 1,250 (1,501) -120% 27,133 13,750 (13,383) -97% 15,000 (12,133) Communications - data 3,779 3,750 (29) -1% 45,972 41,250 (4,722) -11% 45,000 (972) Communications - mobile 2,024 1,667 (357) -21% 23,859 18,333 (5,526) -30% 20,000 (3,859) Utilities 1,518 1,500 (18) -1% 17,798 16,500 (1,298) -8% 18,000 202

Total Indirect Cost 397,993 306,012 (91,981) -30% 4,214,432 3,366,137 (848,295) -25% 3,672,150 (542,283)

Overhead Cost Annual events - 433 433 100% 4,992 4,767 (225) -5% 5,200 208 Audit 3,600 2,500 (1,100) -44% 18,600 27,500 8,900 32% 30,000 11,400 Bad debts - 2,083 2,083 100% 0 22,917 22,917 100% 25,000 25,000 Bank charges 4,559 4,000 (559) -14% 48,381 44,000 (4,381) -10% 48,000 (381) Directors fees 8,016 7,500 (516) -7% 88,188 82,500 (5,688) -7% 90,000 1,812 Dues & memberships 5,073 6,667 1,594 24% 64,709 73,333 8,624 12% 80,000 15,291 Election Expense - 2,500 2,500 100% 27,709 27,500 (209) -1% 30,000 2,291 Interest 44,075 84,750 40,675 48% 484,821 932,250 447,429 48% 1,017,000 532,179 Legal 3,557 12,500 8,943 72% 128,316 137,500 9,184 7% 150,000 21,684 Meetings, conventions & travel 2,016 4,167 2,151 52% 30,531 45,833 15,302 33% 50,000 19,469 Meets, con & travel - Directors 3,941 - (3,941) 0% 28,651 0 (28,651) 0% 0 (28,651) Office supplies 26 1,500 1,474 98% 22,572 16,500 (6,072) -37% 18,000 (4,572) Postage 5,866 2,625 (3,241) -123% 15,719 28,875 13,156 46% 31,500 15,781 Property taxes 63 458 395 86% 4,528 5,042 514 10% 5,500 972 Advertising & Publicity - 208 208 100% - 2,292 2,292 100% 2,500 2,500 Public education & outreach 11,953 23,958 12,005 50% 101,904 263,542 161,638 61% 287,500 185,596

Total Overhead Cost 92,744 155,850 63,106 40% 1,069,622 1,714,350 644,728 38% 1,870,200 800,578

TOTAL EXPENSES $2,277,741 $2,163,309 ($114,432) -5% $22,093,223 $22,824,503 $731,280 3% $25,006,075 $2,912,852


Actual $335,040 $23,641 $(92,834) $467,695 $68,400 $21,937 $273,957 $80,250 $- $363,026 $44,715 $-

YTD $335,040 $358,681 $265,847 $733,542 $801,942 $823,878 $1,097,835 $1,178,085 $1,178,085 $1,541,111 $1,585,826 $1,585,826

Budget $915,500 $915,500 $915,500 $915,500 $915,500 $915,500 $915,500 $915,500 $915,500 $915,500 $915,500 $915,500

$(200,000)

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

COST ANALYSIS - EQUIPMENT 5/17


Actual $(115,633) $(11,847) $803,314 $98,703 $70,038 $542,935 $98,494 $100,216 $200,108 $99,694 $53,952 $-

YTD $(115,633) $(127,480) $675,834 $774,538 $844,575 $1,387,510 $1,486,004 $1,586,220 $1,786,328 $1,886,022 $1,939,974 $1,939,974

Budget $1,716,036 $1,716,036 $1,716,036 $1,716,036 $1,716,036 $1,716,036 $1,716,036 $1,716,036 $1,716,036 $1,716,036 $1,716,036 $1,716,036

$(500,000)

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

COST ANALYSIS - PROJECTS 5/17

LANDSCAPE MAINTENANCE SERVICES

The District’s annual landscape maintenance needs consist of weekly, monthly, quarterly and semi-annual services to perform the following tasks at the District’s Main Office, Water Recycling Plant (WRP), WRP Holding Pond and a variety of additional remote sites:

Mowing Lawns Pruning/Sculpting Vegetation Fertilization Irrigation System Maintenance Major Cleanups at Large Sites

o Weed Abatement o Vegetation Overgrowth Mitigation o Debris Disposal

The District’s landscape maintenance services had been provided by Spectrum Landscape since 2005. The District competitively bid the landscape maintenance services in 2014 with Spectrum remaining the successful bidder. Unfortunately, this long-term relationship came to an end when Spectrum ceased operations in October of 2016. In December of 2016 the District issued a contract to Nieves Landscape, Inc. to take over the landscape maintenance scope of work defined in the previous Spectrum contract. Nieves accepted the contract, with no cost increase, to complete the work for the 16/17 fiscal year. Nieves has performed very well over the last six months. However, Nieves’ experience with the actual scope of the required work at the District facilities and the labor necessary to accommodate that scope has resulted in a request from Nieves for an increase in the contract price. Nieves is willing to hold the price for all of the weekly maintenance but requests a price increase for the labor-intensive cleanup efforts at the R-6 Reservoir and WRP Holding Pond sites as well as for the additional scope of work necessary to maintain the new Demonstration Garden. The previous contract price, following the bidding process in 2014, was $79,660. The total proposed landscape maintenance contract for the 1718 fiscal year is $97,060. The total cost increase relative to the 2014 bid amount is $17,400. The cost increase is broken down as follows:

Cost Increase Total Cost

Original Contract based on 2014 Bid $79,660

WRP Holding Pond Clean-Up $7,800

R-6 Reservoir Clean-Up $3,600

Demonstration Garden Maintenance $6,000

Total 1718 Contract Price $17,400 $97,060

Landscape Maintenance Services Page 2 Nieves has met or exceeded the staff’s expectations for the quality of their work on the existing scope. District staff has checked references and received high praise for Nieves’ efforts to maintain Demonstration Gardens similar to that recently constructed by the District. Staff proposes to award the contract to Nieves for this fiscal year and concurrently commence a detailed effort to prepare to bid the landscape services for the 1819 fiscal year. This effort will include a detailed evaluation by staff of the specific weekly, monthly and quarterly requirements at each individual site. The award of the current contract to Nieves will avail staff of the opportunity to thoroughly reevaluate the District’s overall landscape maintenance scope of work to maximize the benefit of the proposed bidding process in 2018.

RECOMMENDATION Recommended Action at the June 27, 2017 Board Meeting: Staff recommends that the Board authorize the District's General Manager to execute a Purchase Order with Nieves (landscape) not to exceed $97,060.00. By: Dennis P. Cafferty Date: June 22, 2017

OLIN CHLOR ALKALI PRODUCTS CONTRACT

The District proposes two annual contracts that exceed $50,000 in value. The first is the landscape maintenance services, covered in separate staff analysis. The second is a proposed contract with Olin Chlor Alkali Products. Olin is the District’s vendor for the 12.5% concentration sodium hypochlorite necessary for chlorine disinfection of the recycled water produced at the Tertiary Treatment Plant. The proposed contract, for $62,220.20, is based on staff’s evaluation of the sodium hypochlorite demand in the first fiscal year at full recycled water production. The District receives the best possible pricing for the sodium hypochlorite product by participating in the SOCWA contract with Olin Chlor Alkali Products.

RECOMMENDATION Recommended Action at the June 27, 2017 Board Meeting: Staff recommends that the Board authorize the District's General Manager to execute a Purchase Order with Olin Chlor Alkali Products not to exceed $62,200.20. By: Dennis P. Cafferty Date: June 21, 2017

ResidentialLagunaWoodsVillage

Multi Family Trailer Parks CondoIrrigation ‐Functional

Irrigation ‐Recreational

CommercialRecycledWater

PublicAuthority

Private Fire Flooding

Tier IV 1,197 726 971 244 285 4,817 64 0 0 0 0 0

Tier III 2,318 3,545 976 228 589 4,434 279 0 0 0 0 0

Tier II 17,120 22,884 990 782 194 33,908 8,911 0 0 0 0 0

Tier I 47,742 43,957 16,779 5,045 9,079 0 0 30,625 44,380 2,603 110 122

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Billing Units

May 2017 Water Sales

ResidentialLaguna Woods

VillageMulti Family Trailer Parks Condo

Irrigation ‐Functional

Irrigation ‐Recreational

Commercial Recycled Water Public Authority Private Fire Flooding

Tier IV 22,321 6,732 8,571 1,112 4,539 56,773 629 0 0 0 0 0

Tier III 30,632 26,157 11,846 4,379 8,240 36,751 2,281 0 0 0 0 0

Tier II 160,099 151,309 8,967 7,111 2,459 268,234 75,319 0 0 0 0 0

Tier I 519,944 493,956 199,811 59,832 109,494 0 0 354,382 350,132 21,766 546 1,634

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Billing Units

Year‐to‐Date Water Sales as of May 2017

Year To Date Sales in ccf

Tier I 1,383,037 60.73%

Tier II 673,498 29.57%

Tier III 120,286 5.28%Tier IV 100,677 4.42%

2,277,498 100.00%

Current Month Sales in ccf

Tier I 122,602 53.76%

Tier II 84,789 37.18%

Tier III 12,369 5.42%

Tier IV 8,304 3.64%

228,064 100.00%

54%37%

5%4%

May 2017 Tiered SalesTier I Tier II Tier III Tier IV

61%

30%

5%4%

Year to Date Tiered Sales As of May 2017

Tier I Tier II Tier III Tier IV

Category Billings Percentage

Water Delivery Cost $5,983,463.01 89.74%

Tier III ‐ Conservation $318,757.90 4.78%

Tier IV ‐ Conservation $365,679.80 5.48%

$6,667,900.71 100.00%

Category Billings Percentage

Water Delivery Cost $604,489.71 90.24%

Tier III ‐ Conservation $32,777.85 4.89%

Tier IV ‐ Conservation $32,565.61 4.86%

$669,833.17 100.00%

Water Delivery Cost90%

Tier III ‐Conservation

5%

Tier IV ‐Conservation

5%

Conservation Fund10%

May 2017 Water Sales

Water Delivery Cost90%

Tier III ‐Conservation

5%

Tier IV ‐Conservation

5%

Conservation Fund10%

Year to Date Water Sales as of May 2017

Third United Mutual 50 GRF

Tier 4 969 448 ‐ 121

Tier 3 2,597 3,044 26 278

Tier 2 13,547 23,187 11 2,307

Tier 1 48,683 24,505 1,882 5,938

‐

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Billing Units

Laguna Woods VillageMay 2017 Water Sales

Third United Mutual 50 GRF

Tier 4 11,973 4,010 305 1,264

Tier 3 20,334 19,943 1,377 1,492

Tier 2 101,360 153,597 166 17,303

Tier 1 432,199 263,565 19,403 49,903

0

100,000

200,000

300,000

400,000

500,000

600,000

Billing Units

Laguna Woods VillageYear‐to‐Date Water Sales

May 2017


2015‐2016 5,713 5,141 23,487 14,011 12,067 9,095 6,801 5,392 6,113 6,615 11,854 17,788

2016‐2017 23,067 13,103 19,362 13,724 9,614 9,106 5,536 3,639 3,568 7,198 12,369

15/16 ET 5.95 6.24 4.96 3.86 3.26 2.36 1.89 3.83 3.99 5.15 4.65 5.81

16/17 ET 6.78 5.96 4.50 3.23 2.76 1.91 1.99 1.77 4.27 5.17 4.70

0.00

3.00

6.00

9.00

12.00

15.00

0

3,000

6,000

9,000

12,000

15,000

18,000

21,000

24,000

27,000

ET Factor

Consumption in

CCF

Tier III Consumption


2015‐2016 4,284 4,000 20,004 15,663 16,340 12,756 6,673 4,405 5,724 5,585 9,365 16,287

2016‐2017 23,546 7,013 12,969 12,291 10,308 10,294 5,145 2,883 2,769 5,155 8,304

15/16 ET 5.95 6.24 4.96 3.86 3.26 2.36 1.89 3.83 3.99 5.15 4.65 5.81

16/17 ET 6.78 5.96 4.50 3.23 2.76 1.91 1.99 1.77 4.27 5.17 4.70

0.00

3.00

6.00

9.00

12.00

15.00

0

3,000

6,000

9,000

12,000

15,000

18,000

21,000

24,000

27,000

ET Factor

Consumption in

CCF

Tier IV Consumption


2015‐2016 360,757 321,451 341,158 291,000 259,272 215,602 196,711 170,879 207,867 216,357 232,370 276,514

2016‐2017 322,764 297,273 346,995 263,120 227,277 216,478 172,428 149,232 150,697 246,036 261,524

% 89% 92% 102% 90% 88% 100% 88% 87% 72% 114% 113% 0%

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Consumption in

CCF

ETWD Total Consumption


2015‐2016 83,158 78,181 78,496 67,934 64,268 58,286 56,727 51,903 50,857 63,906 63,244 75,110

2016‐2017 92,684 77,685 90,100 70,617 64,741 59,287 50,923 44,723 45,516 68,339 68,377

% 111% 99% 115% 104% 101% 102% 90% 86% 89% 107% 108% 0%

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Consumption in

CCF

Single Family Residents Consumption


2015‐2016 42,811 42,593 40,653 37,307 38,596 35,856 40,655 34,520 34,691 40,131 34,578 38,961

2016‐2017 42,465 37,872 45,442 37,354 37,718 39,233 39,696 35,523 34,761 40,142 36,164

% 99% 89% 112% 100% 98% 109% 98% 103% 100% 100% 105% 0%

25,000

30,000

35,000

40,000

45,000

50,000

55,000

Consumption in

CCF

Multi Family Residents Consumption


2015‐2016 81,716 65,997 79,673 57,601 51,517 43,243 45,376 37,111 50,407 50,514 58,349 70,004

2016‐2017 81,773 76,968 91,952 64,623 54,727 55,588 44,298 37,794 36,274 63,045 71,112

% 100% 117% 115% 112% 106% 129% 98% 102% 72% 125% 122% 0%

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Consumption in

CCF

Laguna Woods Village Consumption (Excluding Dedicated Irrigation)


2015‐2016 41,134 36,284 38,253 35,634 33,524 30,473 32,819 27,843 29,308 32,958 29,460 35,005

2016‐2017 33,963 37,902 40,718 33,489 31,644 31,831 28,616 26,911 25,113 31,267 30,623

% 83% 104% 106% 94% 94% 104% 87% 97% 86% 95% 104% 0%

20,000

25,000

30,000

35,000

40,000

45,000

Consumption in

CCF

Commercial Consumption


2015‐2016 93,179 80,333 74,419 64,247 47,913 32,990 12,808 11,952 25,080 26,680 44,007 54,713

2016‐2017 68,885 64,088 75,109 54,313 36,317 29,491 7,572 3,417 7,527 40,936 52,413

% 74% 80% 101% 85% 76% 89% 59% 29% 30% 153% 119% 0%

500

20,500

40,500

60,500

80,500

100,500

Consumption in

CCF

Dedicated Irrigation Consumption (including LWV)

el toro water district | serving the public - respecting

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