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Board Receives Favorable 2010 Audit Report

Employees Agree to Furloughs to Reduce Operational Costs

Post Date:06/28/2011 3:00 PM

News Release Mast 

Contact: Mary Lynn Carlton, (530) 642-4103, mcarlton@eid.org

FOR IMMEDIATE RELEASE

Placerville, Calif. — At its June 27 meeting, the EID Board of Directors received and unanimously voted to file the 2010 Annual Audit. The audit report, prepared by Maze & Associates Certified Public Accountants, reported no material discrepancies and stated that the financial statements represent fairly the financial position of the District in all material respects as of December 31, 2010. The audit was conducted in accordance with generally accepted auditing standards. The report contained five main parts: 1) independent auditor’s report, 2) management’s discussion and analysis, 3) basic financial statements, 4) notes to the basic financial statements, and 5) supplemental information. The full audit report may be viewed on the District’s website at www.eid.org.

Maze & Associates Principal Tim Krisch, CPA, said in closing, “Two of the key points I’d love for you to leave the room with are the District has once again received an unqualified opinion, meaning it’s a clean opinion, which is the highest level of assurance that we as auditors can provide or issue for an entity. That’s huge for any entity but certainly for the District this year. Secondly, there has been great progress made within internal controls. A year ago we had a material weakness, a significant deficiency, and what we call ‘other subject matter,’ which means it is not going to have a serious impact one way or another. In 2010 we had none of the above, so we could not even come up with a topic to disclose or elevate for improvement to the organization. So that, from our perspective, is outstanding.”

When asked by Director Wheeldon if he thought the District was in good financial shape, Krisch responded that he thought the District is moving in the right direction from an audit perspective. “Obviously there are concerns that we have heard all morning about rates, supply and demand, and debt service, but from my perspective as a CPA and not as a rate payer in this District, I am very encouraged about the direction that this District is moving.”

Director Fraser asked Krisch to comment on the rate increases that the District imposed for 2010 and the necessity of the increases. “It was overdue as the revenue was not there to meet the debt covenants in 2009,” said Krisch. “It may have even been a year behind in the cycling, so it was definitely needed.” Board President Norris thanked Finance Director Mark Price and his staff for the great job that they did on the audit.

Staff Agrees to Furloughs

In an effort to help the District reduce costs, staff agreed to take 40 hours of furloughs between July 2 and December 31, 2011. District headquarters in Placerville will be closed on the following Fridays: July 15, August 19, September 16, October 21, and November 18. Field staff furlough time will be scheduled in a way as to ensure that operations continue uninterrupted and so that staff can still respond in an emergency situation. The furloughs will generate a quarter million dollars in savings and could increase the District’s debt coverage from 1.25 to 1.27. “I have met with the labor management committee and I am very pleased that they understand the situation for both the rate payers and the agency alike,” said EID General Manager Jim Abercrombie. Water revenue for the current year is behind plan due to the wet spring and this prompted Abercrombie to impose furloughs. Abercrombie reported the District’s updated projected year-end gross revenue is $67.880 million, as of May 31, versus the year end plan of $69.146 million—a deficit of $1.26 million. “This could change if our hypdropower revenue comes in above plan due to the late rain,” he said.

In other business, the Board—

  • Recognized the wastewater division staff for being awarded the “H.R. LaBounty Safety Program Certificates of Appreciation” from the Association of California Water Agencies–Joint Powers Insurance Authority (ACWA-JPIA) for promoting safety in the workplace. Staff recognized and eliminated a significant fall hazard at the El Dorado Hills wastewater treatment facility. “This was an ACWA-JPIA award and I really appreciate you making safety a number one priority and coming up with good ways to remove hazards. Great job!” said General Manager Abercrombie. Director Wheeldon noted that this kind of concern for safety has reduced EID’s workers’ compensation cost by about $1.5 million over the last seven years. “This is an example of how a $4,000 investment has kept costs down and saves a lot of money for our ratepayers,” said Wheeldon.
  • Adopted a resolution approving the 2010 update to the Urban Water Management Plan (UWMP). The UWMP serves as a long-range planning document for the District water supply through information about the existing water supply, projected water use, and District plans for providing a reliable, safe, high-quality, water supply into the future. The Urban Water Management Plan Act requires each urban water supplier with more than 3,000 connections or supplying more than 3,000 acre-feet of water annually to adopt and submit a UWMP every five years to the California Department of Water Resources.
  • Received an informational update on the 2011 Water Resources and Service Reliability Report. This report is updated annually to determine water supply, potential demand, and meter availability within the District. EID’s Engineering Director Brian Mueller reported that a large reduction in unit demands has been seen over the last two years most likely due to wetter, cooler weather and increased conservation efforts by our customers.
  • Approved the award of an on-call contract to Psomas for the Hazel Creek campground restoration design not-to-exceed $69,492 and authorized a total project funding of $153,466. The project is 100 percent funded by a grant from the Sierra Nevada Conservancy.
  • Awarded a professional services agreement to HDR Engineering, Inc. in the amount of $114,593 for preparation of the Folsom Reservoir cold water pool management modeling and authorized $10,000 in staff time for a total funding request of $124,593.
  • Awarded a professional services contract to MGE Engineering, Inc. in the not-to-exceed amount of $171,741 and approved funding for other costs in the amount of $213,045 for a total funding request of $384,786 to replace the Camp 2 bridge. The bridge is the sole access route to facilities along the El Dorado Canal in that location.
  • Approved capital improvement plan funding for recycled water system improvements and improvements at the Camino Heights wastewater treatment plant. The total request for both projects was $104,000.

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EID is a public agency dedicated to providing high quality water, wastewater treatment, recycled water, hydropower, and recreation services in an environmentally and fiscally responsible manner. 



 

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