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HomeMy WebLinkAbout2005-01-26 ORANGE COUNTY SANITATION DISTRICT 9�r January 19, 2005 phone: (714)962-2411 fax: NOTICE OF MEETING (714)962-0356 www.ocsd.com mailing gd O. Box 8127 BOARD OF DIRECTORS Fountain 92 28-8127 ORANGE COUNTY SANITATION DISTRICT street address: 10844 Ellis Avenue Fountain WEDNESDAY, January 26, 2005 — 7:00 P.M. Member Agencies ® DISTRICT'S ADMINISTRATIVE OFFICES Cities 10844 Ellis Avenue Anaheim Fountain Valley, California 92708 Brea Buena Park Cypress Fountain Valley Fullerton Garden Grove The Regular Meeting of the Board of Directors of the Orange County Sanitation Huntington Beach District will be held at the above location, time and date. Irvine La Habra La Palma Los Alamitos Newport Beach Orange Placentia Santa Ana Board Sec tary Seal Beach Stanton Tustin Villa Park Yorba Linda County of Orange OMTS COMMITTEE - Wednesday, February 2, 2005 at 5:00 p.m. Sanitary Districts PDC COMMITTEE - Thursday, February 3, 2005 at 5:00 p.m. Costa Mesa Midway City FAHR COMMITTEE - Wednesday, February 9, 2005 at 5:00 p.m. Water Districts Irvine Ranch GWR SYSTEM STEERING COMMITTEE - Monday, February 14, 2005 p.m. @OCWD NEW DIRECTORS' ORIENTATION -Wednesday, February 16, 2005 at 5:00 p.m. STEERING COMMITTEE - Wednesday, February 23, 2005 at 5:00 p.m. To maintain world-class leadership in wastewater ano water resource management. b C.S p BOARD MEETING DATES Board Meeting February 23, 2005 March 23, 2005 April 27, 2005 May 25, 2005 June 22, 2005 *July 20, 2005 August 24, 2005 September 28, 2005 October 26, 2005 *November 16, 2005 *December 21, 2005 January 25, 2006 *Meetings are being held on the third Wednesday of the month HAdeptladmin18S1Agenda12005 Meeting Notices\MN1.2.doc STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and Agenda for the Regular Board Meeting of Orange County Sanitation District to be held on :�9��az << , 2005, was duly posted for public inspection in the main lobby of the Districts' offices on ,1�tctu , 2005. r ,yl IN WITNESS WHEREOF, I have hereunto set my hand this day of 2005. ij Penny M. Kyle, SecrEXaryl Board of Directors Orange County Sanitation District HADEMADMIN MFORMSIAGENDA CERTIFICATION.DOC `oJ�jV SANI�FI Oti ORANGE COUNTY SANITATION DISTRICT 9 = O>f � Ct H0 INE January 19, 2005 phone: (714)962-2411 To the Chair and Members fax` (714)962-0356 of the Board of Directors www.ocsd.com Subject: Board Letter mailing address: P.O. Box 8127 Fountain Valley.CA 92728-8127 The following are items that you may find interesting. If you need additional street address: information on any of the items, please call me. 10844 Ellis Avenue Fountain Valley,CA 92708-7018 Board Orientation Scheduled for Wednesday, February 16, 2005 There will be a special orientation meeting for new Directors on Wednesday, Member Agencies February 16 at 5—7 p.m. All active and alternate Directors are encouraged to • attend. Please notify Penny Kyle, Board Secretary at (714) 593-7310 if you plan to Cities attend. Anaheim Orange County Sanitation District FOG Manual Receives a Rave Review Brea Buena Park Cypress Last week I had the opportunity to hear a phone message we received from a Fountain Valley Fullerton regional manager of a well-known chain of restaurants that has a store in Tustin. Our Garden Grove staff recently handed the store manager a copy of our Fats, Oils and Grease manual. Huntington Beach Irvine The regional manager said that he thought the manual was the best he had seen and La Habra was wondering whether he could use it in all of his restaurants in his Southern La Palma California region. All of his restaurants are struggling with the issue of FOG Los Alamitos Newport Beach management, he himself has been involved in the issue of FOG management and he Orange has been looking for ways to improve his region's ability to understand and manage Placentia Santa Ana the problem. He sees our manual as an important answer to his needs. The Seal Beach Sanitation District, with the input and help of other OC entities, has created a tool Stanton which is considered valuable by the people that must use it. Tustin Villa Park Yorba Linda Long-term Biosolids Management Update County of Orange Consideration of long-term biosolids management alternatives has been underway Sanitary Districts for two-years. A master plan was approved by the Board in December 2004. Requests for proposals, based on the findings of the master plan were mailed in July Costa Mesa 2004. Nine proposals were received in July 2004 and have been under review by Midway City Sanitation District staff since then. Water Districts Irvine Ranch The Biosolids Advisory Committee (BAC) continues to meet weekly. The BAC consists of people representing businesses, environmentalists, residents of cities in the service area and public policy experts. The BAC was formed to review the findings contained in the master plan and assist staff in the formulation of recommendations to the board of directors. On January 18, the group received initial presentations on the proposals under consideration. Over the next month, they will be reviewing the proposals based on the criteria that they have developed. The BAC To maintain world-class leadership in wastewater and water resource management. ' 40J�`� S►N171 jIpN p = P � C 1 Board of Directors Page 2 January 19, 2005 will produce a report with their recommendations which will be submitted to staff and to the Board. In-county alternatives for the long-term composting of biosolids and green waste are also under early consideration. The Sanitation District and the South Orange County Wastewater Authority have proposed a facility at the Prima Descheca Landfill in south Orange County. Sanitation District will bring a two-party planning agreement to the OMTS committee for consideration in the next couple of months to continue this concept forward. The Sanitation District department heads and I met on January 17 to begin the budgeting process for FY 05-06. Our long-term biosolids management options were part of our discussion. When we replace our existing practices of remote land-based management of our biosolids on agricultural land with highly processed options, our capital and operating costs will be substantially increased. Today, our practices are subject to considerable local controversy and uncertainty. Their sustainability is always in question. The long-term alternatives would be far more certain and sustainable—and expensive. There is no new news in this—these issues were discussed at length during late 2003 and early 2004 in a series of briefing sessions to the Sanitation District board committees. However, I bring this to your attention once again because the EMT and I have concluded that one more round of complete briefing sessions ought to occur in the next several months as the responses to the RFP and the in-county alternatives take shape. Associated costs will become better defined. During 2005 we intend to fully describe the technical, environmental, financial, regulatory and public concerns associated with biosolids management. We are approaching a fork in the road. Like disinfection and secondary treatment standards, what we decide in the near term will have huge long-term impacts on what we plan, design, build, operate and finance. Isn't this fun? Annual Washington D.C. Congressional Delegation Luncheon The annual Washington D.C. Congressional Delegation luncheon will be held on February 16, 2005. The luncheon is sponsored each year by the Orange County Sanitation District, Orange County Water District and Metropolitan Water District of Orange County. It is an opportunity to meet with the Orange County Congressional Delegation and their staffs in order to review our funding requests for the next fiscal year. Chair Anderson and Vice-Chair Ferryman will be representing the district at this year's event. Tsunami Disaster Relief As we know, a 9.0 earthquake off the coast of Indonesia sent tsunami waves out into the Indian Ocean. The death-toll left in the aftermath of this event ranks as the fifth most damaging tsunami disaster in recorded history. Approximately 150,000 lives were lost. Estimates indicate that one million people have been left homeless. Many people have asked, "what will the Sanitation District do to help?" Currently, most UJM,r SAN,,, O ti t F mot` Board of Directors Page 3 January 19, 2005 relief organizations are supporting international relief efforts with monetary contributions and staff. Water, food, clothing, medical aide and temporary housing are the immediate challenges. The devastation left from this event has severely weakened the ability of these countries to provide the most basic human needs. As a result, most relief organizations are taking a cautious approach and not flooding the region with personnel that would further strain already over-burdened resources. Volunteers have been primarily restricted to emergency and safety personnel. The next step will be to rebuild what has been lost. Nearly all strategic, tactical and logistical issues are still in the planning phase. There is considerable interest being expressed by our employees to help. They would be over there already if they had it their way. We want to help, but simply arriving in country with a pick and a shovel in hand is not enough. There are a number of policy issues we must answer here and a number of logistical questions that must be answered over there. Staff is working diligently to answer key questions in order to determine what we can do to help. After the planning stage is complete, relief organizations will begin sending volunteers to build the water and sewage systems—this is where we can be of the most help. In the meantime, Sanitation District staff will continue to research our support role to assist the victims of this terrible disaster. Based on our current understanding, it will be a few months before coordinated rebuilding efforts will be underway. Once the needs have been prioritized, the national and international organizations that are coordinating the effort will look to volunteers to help. To simplify policy and funding questions, we will seek underwriting by charitable organizations. Expect further updates in the next coming months. I would love to get your ideas and comments in the meantime. They will help inform me and my staff as we develop a game plan for consideration by the board. Our Recent Wet Weather Made a Mess of Day-to-Day Biosolids Management Due to record-setting rainfall. snow on the Grapevine, closures of highways and local flooding in January, our access to our land-based alternatives in Kern County, Kings County and parts of Arizona was dramatically reduced. In order to avoid the costly process of storing biosolids in on-site drying beds and the potential for damaging the water-logged farm land, we received regulatory approval to utilize two landfills in western Arizona as a biosolids management option. Management of our biosolids at these landfills is being performed by two of our existing biosolids management contractors at existing contract prices. Since landfill operations in Arizona are rarely affected by rain and the route to the landfills does not cross a significant mountain range, we reduced its wet-weather vulnerability. With this change, we now have three active biosolids management contracts (Tule Ranch, 1 1 SANIr�r ory � � o i A 'Fe-N Board of Directors Page 4 January 19, 2005 Synagro, and Solid Solutions), four products (Class A Compost, Class B land application, Class B landfill, and Class A land application), in six different California and Arizona counties (Kern, Kings, Riverside, Yuma, La Paz, and Maricopa) Groundwater Replenishment System (GWRS) The rainy season in Orange County has begun with a bang or should I say a splash. Already this year, we have nearly reached our expected annual rainfall. But, this is not enough to make up for over five years of drought. The groundwater basin is in an overdraft situation of 200,000 acre-feet and it would take two-to-three more heavy rain years to restore the groundwater basin water levels. Since we have a history of floods and droughts is exactly why the Groundwater Replenishment System (GWRS) is so beneficial. This landmark project will provide a reliable supply during a drought and also during the summer months when imported water supplies are most challenged. By the way, most of the water that recently came down had to flow directly to the ocean to prevent flooding. When online in 2007, the GWR System will produce 70 million gallons of water per day, which is enough water for 144,000 families. The GWRS is not only revolutionary; it is necessary to ensure a stable water future for Orange County. Public Outreach and Education This month the Ocean Institute located in Dana Point Harbor is conducting its second annual Kid's Conference on Watersheds. Seventy-two 51h grade classes from Orange and Los Angeles County will be presenting their research projects on current watershed issues to their peers and panels of watershed experts over the course of 13 days. Three of our staff members are participating as keynote speakers and expert panel members at the event. Articles of Interest I have also included several additional published articles that you might find interesting. If you would like additional information on any of the above items, please call me. Blake P. Anderson General Manager BPA:gg HIDEPT\ADMUGM\LETTERS TO THE BOARD\04\092204 BOARD LTR..DOC Attachments cA-A-54J IL SOUTHLAND'S RECORD RAINFALL } St'�' 9Sa-"'F-- Rain Overwhelms Sewage System n .�J?ZAM Massive amounts of runoff cause wastewater to overflow from pipes and treatment plants, fouling Southland waterways and beaches. By Jia-Rui Chong and Nancy Wride Times Staff Writers January 12, 2005 The series of powerful rainstorms sent millions of gallons of treated and untreated wastewater into Southern California waterways, overburdening sewage systems and polluting some beaches with more than 10 times the usual levels of bacteria. Sewage spills prompted health officials to close several beaches in Long Beach and along a large swath of the Orange County shoreline from Huntington Beach to Newport Beach, around where Santa Ana River empties into the sea. While other beaches remained open, authorities urged people to avoid the water until at least Friday because of high bacteria levels. "The contamination is off the charts," said Dr. Darryl M. Sexton, Long Beach's health officer. "Have you seen the [Los Angeles] River? The runoff is all brown. It's got animal waste from the storm drains let alone human waste coming from the sewer, so all of it creates a potential health problem." While rainstorms often foul the ocean, officials said the record rains over the last few weeks have been especially harmful. Debris littered beaches across the region, and the heavy rainwater overwhelmed sewage systems, causing massive leaks. Justin Rudd, a Long Beach activist who leads monthly beach cleanups, returned Tuesday afternoon from a beach jog in Belmont Shore and said the shoreline was dotted by 8- to 12-foot-high piles of trash. Bamboo, shopping carts, balls and heaps of trash were tangled like towering haystacks as far as the eye could see. "There is always trash on the beach from the L.A. River, and it needs cleaning up every day, but this will take weeks," Rudd said Tuesday. "It's a marked difference." But that's the trash you can see. The water itself has also been polluted by sewage and urban runoff. About 2.4 million gallons of raw sewage have spewed into the Los Angeles River since Sunday morning when a sewage system in Eagle Rock spilled over. Barry Berggren, a division manager for the Los Angeles city Bureau of Sanitation, said he sent crews out immediately with trucks to intersections, including York Boulevard and Avenue 45, to vacuum up the sewage and dump it into another part of the system. Since Sunday, the 17 trucks have sucked up about 5 million gallons. Berggren said the cleanup continues and his crews have posted signs along various streets warning residents to stay away. Citywide, more than 30 crews are working to remove sewage from overloaded pipes and truck it to other parts of the system. Some crews have been brought in from as far as Bakersfield. Sexton, the Long Beach health officer, said he ordered beaches closed as soon as Los Angeles officials informed him Monday about the untreated sewage coursing toward his city's harbor. Even before the sewage spill, he said, the rains had raised the level of some bacteria at city beaches to almost 20 times the state's acceptable limit last week. He did not have up-to-date data Tuesday. On Tuesday, raw sewage could be seen spilling onto the shoreline near the Aquarium of the Pacific and the Long Beach Convention Center, which was playing host to the popular annual State of the City luncheon. Sexton said it was much better to stay indoors during the event. Los Angeles County health officials have posted warning signs on beaches from San Pedro to the Ventura County line since Dec. 28. More than 50 storm drains, creeks and rivers empty into the county's beaches. Officials close beaches only if there is a sewage spill. Eric Edwards, an environmental health specialist for the county, said test results from Monday show bacteria levels well above acceptable limits set by the state. "It's 10 times as high in some cases for enterococcus," he said. "On some locations, the bacterial levels exceed the upper limit of the test." The deluge has also forced the county to create bypass systems to handle overflowing wastewater at treatment plants in Artesia and the City of Industry, said Ken Pellman, a spokesman for the county Public Works Department. The department also made the rare move of opening the gates at its Malibu Mesa wastewater facility, releasing treated sewage into a stream in Marie Canyon, which flows into the ocean. Pellman said his department tries to scoop as much of the trash off the runoff as it can, but he said much of it still makes its way down to the ocean. One day last week, he said one of the booms stretched across the Los Angeles River in Long Beach collected 10 tons of trash. r i Much of the sewage in Orange County flowed down the Santa Ana River from a ruptured pipe in Rubidoux that sent 4 million gallons of wastewater through Riverside and Orange counties. At least hundreds of thousands of gallons of cow waste have also spilled into the river from dairy farms in the Chino and Ontario areas, said Kurt Berchtold, assistant executive officer of the Santa Ana Regional Water Quality Control Board. Rescue workers have been so concerned about hepatitis and other pathogens in the water that they go through hazardous materials decontamination every time they conduct a swift-water rescue, said Riverside County Fire Chief Craig Anthony. "We play lip service to clean water and trying to clean out watersheds," said Riverside County Supervisor Bob Buster at a storm damage briefing Tuesday. "But it seems like everything is thrown out the window when it rains." In Orange County, authorities were warning people to stay out of the ocean along the entire Orange County coast because of the polluted runoff from the recent storms. Monica Mazur, supervising environmental health specialist for the county, said the beach areas closed included those from Magnolia Street in Huntington Beach south to 52nd Street in Newport Beach, the half mile around Salt Creek in Dana Point, the part of San Clemente Beach between Camino Capistrano Road and the pier, and part of Corona del Mar State Beach. Mazur said that some beaches could continue to have high bacteria counts because of water being released from Prado Dam into the Santa Ana River and from San Juan Creek, which empties at Doheny State Beach in Dana Point. L In order by date and newspaper—OC Register then LA Times. Friday,January 14,2005 Prado Dam area residents allowed to return to homes The release of millions of gallons of water per minute into the Santa Ana River prompted the clearing of an O.C. campground and neighborhoods in Corona. ByJOHN McDONALD The Orange County Register YORBA LINDA—Hundreds of downstream residents and campers headed for higher ground this morning when officials sent millions of gallons of water per minute gushing from the Prado Dam to alleviate a huge buildup of rainwater behind the earthen barrier,which for awhile was leaking. Roadways have reopened and residents have been allowed back into the area this afternoon. Orange County Emergency Operations Center officials said that the dam's operators,the Army Corps of Engineers, reported there was no imminent threat of the dam bursting and that the leakage,which was the result of a construction project,was stabilized this morning by crews and earthmovers. The dam is three miles from the Orange County line. Orange County Sheriff Mike Carona said O.C. residents shouldn't leave their homes. "The U.S.Army Corps of Engineers is onsite assessing the situation and indicates there is no need for evacuation at this time,"he said. Given the volume of water being released into the Santa Ana River from the dam,the National Weather Service issued a flood watch for communities along the river in both Riverside and Orange counties.The flood watch was set to expire at 6 tonight. "We're releasing water,"said Fred-Otto Egeler,spokesman for the Los Angeles district of the Corps of Engineers. "It's being retained behind the dam, and we're making normal releases at this moment." At midmorning,the Orange County Water District said about 922,000 gallons of water a minute was flowing into the reservoir behind the dam, and about 4.5 million gallons a minute were being released.The dam currently holds 26.5 billion gallons. Principals at three Orange Unified schools located near the Santa Ana River in the Anaheim area allowed parents to remove their children from classes earlier today. Riverdale Elementary, Crescent Primary and Crescent Intermediate schools weren't evacuated, and classes weren't suspended but several parents picked up their children.The schools are located about five miles downstream from the evacuated area. About 1 a.m.,officials evacuated more than 100 campers at Featherly Regional Park along the Santa Ana River in Yorba Linda. Corona police Sgt.Jerry Rodriguez said officers early today evacuated about 330 mobile homes and 508 other homes north of the Riverside (91) Freeway and below the dam.An evacuation center was established at Corona High School. The evacuation was downgraded to voluntary at 4 p.m.,meaning that residents could return to their homes but were welcome to stay at the high school evacuation center,which will remain open for at least another 24 hours.The change was based on assurances by the Army Corp of Engineers that the seepage was stabilized and no danger was imminent. Corona police will be in the neighborhood to provide residents with fliers containing information about how they will be alerted should another evacuation be necessary. "I know how cities work,this thing ain't going to break,"quipped Green River resident Paul Litchenberg,earlier today after his wife and three daughters had left for higher ground. Litchenberg,a police officer,said he intended to complete a barbecue he was building.The rest of the neighborhood looked deserted in the wake of the call for a voluntary evacuation. Orange County activated an emergency hot line as a precaution because of the increased flow of water along the Santa Ana River,which runs through Yorba Linda and Anaheim Hills before emerging from Santa Ana Canyon. Anyone with concerns could call (714)628-7085.Callers may need to call several times before getting through. Officials have reopened the Corona(71)Expressway and the Green River on-ramps to both directions of the 91, which were closed this morning. The Orange County Sheriffs Department and police in Anaheim and Brea,which serves Yorba Linda,were on alert, officials said. (714) 796-6743 or imcdonatd(cDocreQister.com Saturday,January 15,2005 Small leak, big response Easy repair needed when water seeps from Prado Dam after recent deluge,prompting Corona, O.C. evacuations. By PAT BRENNAN and AMANDA BECK The Orange County Register A leak at Prado Dam on Friday that initially worried city and county officials,prompting evacuations,turned out to be small and relatively easy to repair. But it served as a powerful reminder of the enormous force of the water that fell on Southern California during more than four days of rain that rapidly filled the basin behind the dam,just northeast of Orange County. Q:What caused the leak? A: Construction crews with a contracting firm, Yeager-Skanska Inc. in Riverside County,are raising the dam by 28 feet to provide increased flood protection for Orange County. They are also installing a new outflow system.To do this,they built a temporary dam,called a cofferdam,behind a portion of the dam to protect themselves in case the water rose. But the heavy rains raised the level of water behind the main dam until the water topped the crest of the cofferdam, which is lower.The pit between the cofferdam and the dam filled with water,placing immense pressure on the dam.A leak appeared in the face of the dam. Q:When was the leak detected, and what was done to stop it? A:Contractors at the site noticed a wet spot on the face of the dam early Thursday.Throughout the day,they watched it grow to about 15 times its original size.They contacted the U.S.Army Corps of Engineers,which operates the dam. • The Army Corps notified officials in Riverside,San Bernardino and Orange counties of both the leak and the high water flows being discharged to bring down the water level and decrease the pressure on the dam. Contract crews spent the day shoring up the dam's face with dirt. They will also apply a fine mesh called a geo textile to the dam's face to help keep it stable. Q:Were residents downstream from the dam ever in danger? A:About 2,300 people were evacuated from parts of Corona by city emergency officials. Early Friday morning,Army Corps engineers thought there could be a small chance that the leak could grow. As the hours passed,however,they realized the leak was not growing. City officials said the evacuation was the right decision based on the uncertain level of risk during the early hours of the crisis. Q: Does this mean the dam will have to be rebuilt? A:No, according to the Army Corps of Engineers.The leak was a result of unusually heavy rain,and the structure of the dam was not compromised. Q:What is the purpose of Prado Dam? A:The dam,built in 1941,is meant to protect Orange County residents from flooding and is a key part of the$1.4 billion Santa Ana River Mainstem project. The project includes the Seven Oaks Dam, in the San Bernardino Mountains near the headwaters of the Santa Ana River,which guards against flooding from the mountains. Prado Dam receives water from 2,200 square miles of land that drains into the Santa Ana River. The dam also helps provide part of Orange County's water supply. Water is held behind the dam and periodically released so it can fill settling ponds along the river in Orange County. The water settles into the deep drinking-water aquifer hundreds of feet down. Reinforcements of banks and other improvements on the 95-mile-long river also protect against flooding. Q: How will raising the height of the dam help? A:The engineers who designed the dam say raising its height will increase protection for Orange County against massive floods-giving us protection from a so-called 190-year flood.At its current height,the dam protects us from a 70-year flood. Such terms,however,are based on statistics of past storms,not on any real regularity of big storms over decades and centuries.A 100-year-storm,for example,has a small chance-about 1 percent-of happening in any year. Q: Has Orange County ever experienced extensive floods? Prado dam stabilized No imminent threat, as weather turns warmer and drier By KEITH SHARON The Orange County Register Seepage from the Prado Dam has stabilized and there is no imminent threat of an overflow, according to a report released today by the Army Corps of Engineers. An emergency hotline designed to handle tips about dam troubles was discontinued at midnight Friday. The weather turned sunny and warm throughout the region. Kids returned to ballfields to play soccer and tryout for Little League baseball,and young adults hit the slopes.At Snow Summit,above San Bernardino,snowboarders found packed snow and crowds that made the wait at lift lines about 10-15 minutes in the morning. The forecast calls for Orange County conditions to be mostly sunny throughout the afternoon,with highs reaching to 76, and similar conditions for Sunday and Monday. Meanwhile,crews continued working today to repair damage caused by the storms last week.Army Corps of Engineers crews continued working today to widen Prado dam and raise the height of its walls.And county crews were at work shoring up Oso Creek in Mission Viejo and San Juan Creek east of San Juan Capistrano. More than 2,000 people were evacuated from Corona and northeast Orange County campgrounds early Friday because of seepage in the dam.They were allowed to return home Friday afternoon. Saturday, January 15, 2005 Floods and flood control 1862:The biggest flood in the Santa Ana River's recorded history hits after 15 days of rain.Crops and cattle ranches are wiped out. 1916:A flood wipes out sand levees along the river from Anaheim to Newport Beach. 1929: Prado Dam is proposed to protect Orange County from floods,but voters reject a bond proposal.A 1931 measure also fails. 1938:The second-largest recorded flood hits Orange County, killing 19 people and doing about$4 million in damage. 1938: Congress approves a project to build Prado Dam to protect Orange County.Work is completed in 1941. Late 1950s: Much of the river in O.C. is channeled and paved with asphalt for flood control. 1966-1967:Two county measures to issue bonds for improving flood control fail. 1969:The first major flood strikes the river since the construction of Prado Dam.The dam holds, but asphalt in river channels is destroyed in the storm. 1970:The Army Corps of Engineers determines that Prado Dam is inadequate to protect Orange County during a major flood.A study shows that a flood the size of the one in 1862 would inundate almost the entire northern half of the county in four feet of water, kill about 3,000 people and cause$11 billion in damage. 1987: President Reagan authorizes a$1.1 billion Santa Ana River flood-control project to raise Prado Dam by 30 feet and build a 550-foot dam near the San Bernardino National Forest. 1988:A House committee rejects$15 million to begin construction. 1989-present:Congress approves funding each year for the now-$1.44 billion project,including$17.7 million approved in November. Saturday,January 15,2005 Prado Dam gives a scare More than 2,000 people were evacuated from Corona and northeast Orange County campgrounds early Friday because of light seepage through the nearby Prado Dam. Road closures clogged traffic on the Orange(57)and Riverside(91)freeways during the morning rush hour while anxious residents waited at a shelter at Corona High School.They were allowed to return home that afternoon but were encouraged to wait until Monday. Sunday,January 16,2005 Some return to homes near dam Evacuation for Prado area still recommended. By AMY TAXIN The Orange County Register Some residents returned to homes near Prado Dam on Saturday,while others obeyed Corona's warnings to stay away until the water recedes. Also Saturday, Orange County was included in an emergency declaration that will make it eligible for aid. Water seeped through Prado Dam, prompting officials to order about 2,300 people to evacuate early Friday.A voluntary evacuation remains in effect until Monday,when the U.S.Army Corps of Engineers expects water to reach safe levels. "It looks like most people on my street are all back,"said Paul Litchenberg of Corona's Green River community. Officials said the leak has been fixed. But they're asking people to stay away as a precaution because"the water level is still above the area that has been impacted and damaged,"said Corona fire battalion chief Chris Cox. Water is being released into the Santa Ana River at a maximum of 10,000 cubic feet per second. Sherrie King and her husband plan to stay at a Huntington Beach hotel until the evacuation is lifted. "Yesterday we saw how the river was high and it's the same height today,and so we will just wait until the water goes down some," King said. Meanwhile, Gov.Arnold Schwarzenegger declared a state of emergency for Orange, Los Angeles, Santa Barbara, Kern,San Bernardino,Riverside and San Diego counties.That allows counties to receive state aid for repairing roads and flood damage,an official said. The state will cover up to 75 percent of eligible repairs. Residents Near Prado Dam Evacuated By Sara Lin Times Staff Writer January 16, 2005 Mild-mannered most of the year, the Santa Ana River reminded its neighbors last week of the wrath it can unleash with little warning. With a history of such calamities as the 1938 flood that killed dozens of people, the 96- mile-long river—once considered the biggest flood threat west of the Mississippi has long been a force to be reckoned with. Beginning in 1990, county and federal agencies have banded together to undertake a massive $1.3-billion worth of improvements to prevent flooding across Orange County and the Inland Empire. By the middle of last week, the Santa Ana River Project looked successful as rainwater washed to the sea and not into the streets. But before dawn Friday came evidence that the work is far from over and that the river is never without surprises. Residents were urged to evacuate and emergency flood control work began when engineers detected seepage from Prado Dam, the 64-year-old structure in Corona that regulates the river's flow. Corona police spokesman Jesse Jurado said Saturday that some residents were returning home as word spread that the water had receded and the Army Corps of Engineers had repaired the dam. "Officially, we still have a voluntary evacuation," Jurado said, but "the concern is diminishing." Officials said they were pleased with how well the river had held up— even at its highest volume since 1969. "So far, the river has performed exactly like we've hoped it would," said Herb Nakasone, director of Orange County Public Works. 'That doesn't mean we're not going to have occasional street flooding, but that's not the serious kind of floods that put people out of their homes." The project, which is two-thirds finished, has three main parts: widening river channels through Orange County, building the Seven Oaks Dam in San Bernardino County and raising Prado Dam. Without the fortified dams and river channels, authorities said the region is at risk for a flood that could engulf 110,000 acres, kill 3,000 people and cause $15 billion in damage Flood control officials said improvements to the lower Santa Ana River—finished three years ago — kept it from experiencing the problems of San Juan Creek, which threatened to flood hundreds of homes in San Juan Capistrano last week after rushing water tore away large chunks of concrete banking. Before its makeover, the Santa Ana River looked much like the San Juan Creek— an earthen-bottomed stream with concrete sides. But the concrete walls weren't set deep enough, and officials worried that strong waters would erode the river bottom and undermine the walls' foundation. So the Army Corps of Engineers spent years widening the channel and building stabilizers into the river. South of 17th Street in Santa Ana to Adams Street in Costa Mesa, the river is lined with concrete. North of Santa Ana, the banks are lined with rock and concrete but the bottom is earthen. Spaced every half-mile or so, the stabilizers help prevent sediment erosion. When the water cascades off each 12- to 15-foot-tall step, it hits concrete bumps, or"baffles," that help slow the flow. The result is water slowly traveling down several level planes rather than a single continuous slope. Standing on the bank overlooking a stabilizer near Anaheim, Peter Dalquist, a county engineer who has kept an eye on the Santa Ana River for 25 years, said he was amazed at how well the river held up during this month's deluge. "I've seen panels destroyed, rocks moved around and erosion ... but, oh, it just held up beautifully," Dalquist said. The $1.3-billion project is "definitely money well spent. The cost savings are millions just from this storm," he said. "You may get a little water over the top on some of the local channels, but you're not going to get the city-by-city flooding that was possible before." Miles upstream, the Seven Oaks Dam was also doing its part. Completed in 1999, the dam helps regulate the water behind Prado Dam and protects parts of San Bernardino and Riverside counties from flooding. The final phase of the project includes raising Prado Dam and building new outfall gates that will triple the amount of water that can be released. Construction crews are two years away from finishing the Prado Dam phase, according to the Army Corps, but their work was stymied after storm flows last week overtook a temporary dam protecting the site. When water began seeping through weakened portions of Prado Dam on Friday, Corona officials evacuated 2,300 residents. Saturday, some residents returned, but others were too shaken. "Who needs to take a chance?" asked Susanne Mittelstaedt, 48, a single mother of two who returned to her home Saturday for a few hours before leaving again. "We've got one [engineer] saying nothing is going to happen, but at the same time, they make the comment that if something does happen, it would only take 15 minutes to drown us. I'd rather play it safe." Lois Southard, 39, said she returned home because, "I'd take the engineer's advice before I take the mayor's" suggestion to stay away. "But I'll always be a little leery now about the dam." Eric Glazier, 38, and his wife had mixed feelings. "She thinks there's a big huge crack that's going to blow, and I'm more believing the engineers [that the leak stopped]. But we still have our bags packed in the back of the car in case they call and tell us to get our butts out of here." The Army Corps said there was no imminent danger, but as a precaution they increased their releases to 10,000 cubic feet per second. Thanks to the improvements, the additional water flowed smoothly out to sea. The federal government and Orange County have shared funding for the project, with Washington picking up about three-quarters of the total. So far, Congress has provided $822 million. Rep. Christopher Cox (R-Newport Beach), who helped secure the congressional funds, said the recent record rainfall serves as a reminder. "It is gratifying when Mother Nature cooperates and postpones the inevitable until we've taken the necessary precautions," he said. "If there's a silver lining to all this rain and flooding, it is that it will raise awareness in Congress about the urgent need to complete this project." ORANGE COUNTY Residents Who Left Dam Zone Are Expected Back Prado seepage after rain sparked evacuation of 2,000 where Orange, Riverside counties meet. By David Reyes Times Staff Writer January 17, 2005 With the water level receding and emergency repair work at Prado Dam finished, most residents near the dam in Riverside and Orange counties were expected to return to their homes today, authorities said. "Fortunately, everything is quiet at this time," Corona Police Sgt. Brian Servantes said Sunday. More than 2,000 people living downstream of the dam, in the Corona area and Yorba Linda, were evacuated Friday morning when seepage was detected in the earthen structure. The voluntary evacuation was called off Friday afternoon —though some Corona leaders urged residents to stay away until today—after officials with the Army Corps of Engineers began releasing some of the dam's water and stabilized the area around the seepage. The corps expects a decline in the water level to 45.1 feet behind the dam by today. The lower water level allows reconditioning work to begin on a secondary dam so more incoming water can be accommodated, Fred-Otto Egeler, a corps spokesman, said Sunday. Emergency reinforcement of the seepage area was finished Saturday morning. Meanwhile, Army corps staff stayed on to monitor the dam through the weekend, Egeler said. "There's nothing wrong at the dam. We've been releasing water, and we're ahead of the flow." As Prado's water level is lowered, the pressure on the dam near the seepage is reduced, Egeler said. According to the Corps of Engineers, the recent storm and floods have produced near- record water levels behind Prado. The reservoir level peaked at 67.5 feet Tuesday. That's just a few inches lower than the highest level recorded, in 1980. After the seepage was discovered, the corps released more water into the Santa Ana River: 10,000 cubic feet per second, the maximum permitted. On an average day, the dam releases 200 to 500 cubic feet per second. On Sunday, the flow into Prado's basin was 600 cubic feet per second. The water level behind the dam was 51.1 feet, Egeler said. By Friday afternoon and through the weekend, residents began trickling back to their homes near the dam and a Yorba Linda recreational vehicle park, which also was evacuated. Because the reservoir rose almost to a record level, a portion of Corona Municipal Airport, which is in Prado's flood control basin behind the dam, was underwater last week. TULE RANCH/HONEY BUCKET FARMS & MAGAN FARMS 1533 E. SHIELDS, SUITE F FRESNO, CA 93704 TELEPHONE: (559) 230-1922 FACSIMILE: (559) 230-1924 January 5,2005 Mr. Blake Anderson General Manager Sanitation Districts of Orange County P.O. Box 8127 Fountain Valley, CA 92728 Re: Kern County/Senator Florez Hearing Dear Blake: I feel compelled to let you know what a great Layne Baroldi did representing the Sanitation Districts of Orange County at the biosolids hearing conducted by Senator Dean Florez on Monday,December 20, 2004 in Bakersfield. It was obvious that the Senator intended for the hearing to be confrontation and critical of the land application of biosolids currently occurring in Kern County. It was intentionally timed to raise media attention to the current Kern County Water Agency biosolids RFP effort. The Senator was very forceful and demanding with all speakers that promoted the reuse of biosolids. Most speakers stumbled around and were an embarrassment to their respective agencies or organization. However, Layne took the "high road." He was very articulate,professionally responsive, and displayed a cooperative attitude that was greatly appreciated by Senator Florez and all others present. In fact, Randy Abbott informed me that the next day officials of the Kern County Water Agency informed him that they were very impressed with Layne's participation. Also, I would like you to know that Randy Abbott has been doing an outstanding job in developing and maintaining a very good working relationship for us with officials at the Kern County Water Agency and many other local officials. I trust things are well with you and I wish you a very happy and successful 2005. Sincerely, Shaen Magan President Bush Signs Budget Bill Appropriating $2.5 Million for Groundwater Replenishment System in Orange County Wednesday December 22, 2:37 pm ET FOUNTAIN VALLEY, Calif., Dec. 22 /PRNewswire/ -- The Groundwater Replenishment (GWR) System in Orange County will receive $2.5 million in federal funding for fiscal year 2005, according to an appropriations bill signed into law in December by President George W. Bush. The $2.5 million grant is part of$20 million authorized for the project by Congress in 2000. To date, the Groundwater Replenishment System has received $12 million of federal funding. "By continuing to support this project with federal funds, Congress is agreeing with the people of Orange County to move forward on this very important undertaking," said Phil Anthony, president of the Orange County Water District. The GWR System is a joint project of the Orange County Water District and Orange County Sanitation District and will provide approximately 23 billion gallons of water each year for Orange County beginning in 2007. The GWR System will take highly treated sewer water from the Orange County Sanitation District, currently sent to the ocean, and will purify it to near-distilled water quality. The water will be used to expand an existing underground water barrier, which helps prevent seawater from intruding into the groundwater basin, and will also be naturally filtered into the underground storage basin by the Orange County Water District. Using high-tech membrane purification systems backed by ultraviolet light with hydrogen peroxide disinfection, the GWR System will purify sewer water to a level similar to bottled water. Then, the water will be pumped into Orange County's groundwater basin for further natural treatment before it is extracted for later use. The technologies used for this project are the same as used by baby food manufacturers, pharmaceutical companies and bottled water companies. Half of the water produced from the GWR System will be injected along the coast to revitalize the seawater intrusion barrier that keeps the ocean from contaminating Orange County's groundwater basin. The need to expand the seawater barrier, coupled with the need for a locally controlled source of high-quality water, is the driving force behind the project. When the project is complete in 2007, it will provide enough water for 144,000 families annually. The water can be purified for less than the expected cost of imported water in 2007 using one-half the energy required to import water from Northern California. For more information on the Groundwater Replenishment System, visit www.gwrsystem.com. The Groundwater Replenishment (GWR) System, a new high-tech water purification system, will produce water similar in quality to bottled water. Once complete, the GWR System will: * Help assure the future water supply in Orange County. * Help provide a reliable source of water during future droughts. * Save energy by producing very high quality water using one-half the energy that it takes to bring water here from Northern California. * Produce such high quality water that it will help "soften" the content of the groundwater basin, which eventually will mean longer appliance life. Source: Orange County Water District �g>r 5ANl10 tq,�` C ` IL fi Costa Mesa Sanita s- ct 'yC0'IF0RA'�� . . . an Inbepenbent Special District. R45wc!, IL T--Trco!- n j Direc7nrs COo y 1'0 gakRb L'�4lrtt� January 4, 2005 11 i,r,rlc;de f r•r P07 • Mr. Blake Anderson General Manager Orange County Sanitation District <<rrr P. O. Box 8127 Fountain Valley, CA Re: OCSD Congressional Delegation's Outstanding Success Dear Blake: ; ;rurlr The Board of Directors and Staff of the Costa Mesa Sanitary District send their congratulations and best wishes to Steve Anderson and the other members of the OCSD congressional delegation for their continued success in traveling to Washington D. C. and securing funding for critical OCSD projects. :,t„ R. Burns Obtaining $3.6 million in grant funding this year and $92.5 million overall are outstanding achievements. The funding represents a direct savings to Orange County residents who would have otherwise been faced with providing this financial support. The projects receiving the funding have maintained OCSD as a nationwide leader in wastewater management. Please pass on to Steve and the other members of the delegation this thank you from the Costa Mesa Sanitary District. Sincerely, Robin B. Harriers Manager/District Engineer `' "1 •� cc. Board i.� Staff _ PYOtectill}) 0111,CO11111INYIltt)'J ()L'ahO t),v IwovioinO solio Waste on6 se)1'er collection serz,ices. - COCtalileSa�allltarl?(�1SiY1Ct.0Y[� SA WPA Santa Ana Watershed Project Authority Newsletter Winter 2004 —Volume IV Issue 4 Over 30% of State Budget Shift Falls on the Santa Ana Watershed Historic Budget Deal May Bring Historic Headaches for Special Districts Last year's budget deal crafted by the Governor, legislators and local government officials has recently been implemented and the affects are only now widely understood. Particularly in the special district community,the short-term financial concessions required may provide problems as historic as the budget deal itself. The results for many are staggering: many special districts in the Santa Ana region face local property tax revenue shifts to Sacramento of up to 100 percent according to numerous local media reports. Officials are justifiably concerned about the effects on their districts, their customers and their long-term capital and infrastructure programs, as these funds are shipped to Sacramento. To address this situation, the SAWPA Commission, member agencies and our Sacramento representatives have begun work clarifying the unintended consequences of the budget deal statewide. We have also begun reviewing the work needed to protect the level of services we provide. Most importantly, we have begun reviewing the pros and cons of the pressure Sacramento has applied to simply keep raising k water and sewer rates(an option districts are rightly concerned about). --- Reaching a budget compromise in the midst of the worst budget crisis in history, California's elected officials and Governor(with support from the special district �,�.• Y� �� community)pledged to make short-term concessions in exchange for long-term, - ,�, permanent overhauls to the budget process. These long-term benefits tar , outweighed the short-term budget pain special districts would face-so many.- `— districts thought. These concessions, unfortunately, are becoming increasingly painful. In practice, """' the revenue shifts approved by special districts have become far greater than the 40 percent that was expected from the budget deal. Because a large portion of many �` agencies'budgets comes from shared tax revenues, all parties needed to - compromise and agree to short-term revenue shifts. To reach a budget compromise that met each political party's needs,the special districts and local government entities proposed significant short-term funding cuts in exchange for long-term fundamental changes to the budget process. This deal N�-•»-� included two key components: first, our short-term compromises and agreements to property tax revenue shifts. Second, legislators and the Governor agreed to support Proposition 1A, which makes important constitutional protections for local 2004-2005 Special District government funds following 2006. This proposition was overwhelmingly approved in ERAF Reduction 9 9 P Po 9 Y pP November 2004, earning more than 9 million votes-an historic margin. The pain felt by many special districts is the result of the first part of this deal: short-term concessions. Special districts and local government were required to address some$350 million in shortfalls in funds typically sent from Sacramento to special districts. The primary source of these funds was state property taxes collected by local governments and then distributed back to local government entities. To equitably distribute the concessions, redevelopment agencies were also asked to forgo$250 million; local and city governments were required to forgo$350 million each. In total, these cuts represented nearly$1 billion in savings for budgeters in Sacramento. The cuts, however, would only be required through 2006,when Proposition 1 As'changes take effect. These were simply stop-gap concessions. With assurances that Proposition 1A would protect special districts and local government in the future, the deal was approved by a broad base of supporters. The original deal represented a cut of about 40% in property tax funds from special districts. However, as it was implemented,the cuts have drained far more money from many of SAWPA's member agencies and other districts throughout the state. Two other issues also arose: first, certain local governments and public safety entities-especially those in Northern California- lobbied hard to trim their concessions. The second issue was the marked disparity felt by special districts in Southern California. Of all the regions in the state, only a few will give significant concessions. In Southern California, the scales are so tilted against our regional (Continued on page 2) Santa Ana Watershed Project Authority Page 1 State Budget Deal (Continued from page 1) special districts that one cannot help but consider the serious members and our team in Sacramento, and we are actively regional disparities and ponder how this could have occurred. working to address the two key issues: the unintended The unintended consequences are significant. consequences of the budget deal and the regional disparity The Santa Ana Watershed alone, which represents 12 between north and south state counties. percent of the state's population, will being paying over 30 While we all support the intent of the budget deal, we percent of the total property tax shift statewide! believe action must be taken to address the immediate Consider a couple examples highlighted by local media consequences of the budget deal. reports. Eastern Municipal Water District (a SAWPA member SAWPA is working with our special district members, our agency) will loose$12.6 million-a portion equal to nearly Sacramento representatives and our advocacy team to both 100 percent of their property tax revenue!This is true for educate our legislators and ask for their support when other SAWPA member agencies as well. Inland Empire considering budget planning in the next year. We are also Utilities Agency, Orange County Water District, San working to address the funding shortfalls that our member Bernardino Valley Municipal Water District and Western agencies face without setting the precedent of raising rates Municipal Water District will also lose 100 percent of their as a solution year-after-year. As the legislature returns to property tax revenue! These five districts lose over$42 million session in January, we will remain focused on this issue and in property tax revenue shifts-the amount for the entire continue working to implement a solution to the regional watershed totals$86 million in funding shifted to Sacramento. disparity and the short-term funding crisis facing member The impact of these losses greatly concern SAWPA, our agencies. ■ SAWPA Working with Stakeholders in the Santa Ana Watershed By Daniel Cozad, Acting General Manager As Joe Grindstaff prepared to leave SAWPA to assume stakeholders have worked to meet the goals of the Santa his new position as Chief Deputy Director of the California Ana Integrated Watershed Program and as a result all of the Department of Water Resources, he reminded me of one of 23 projects funded by Proposition 13 will be completed by the fundamental ideas of SAWPA- "individually each of the June 2005. The watershed will have completely utilized the SAWPA members are good, collectively they are great." $250 million that was allocated to us in Proposition 13, and From the time the Commission appointed me to the role will have leveraged it to build over$800 million in projects. of Acting General Manager at SAWPA, my top priority has The watershed should be truly proud of its accomplishments. been to work closely with SAWPA's five member agencies in Proposition 50 offers a tremendous opportunity for an effort to bring them together to "collectively"address agencies with an integrated watershed plan, such as some major challenges and opportunities within the SAWPA, to receive up to$50 million in grants. Working watershed. closely with our member agencies and all watershed Together, we are working to bring regional fairness to the organizations and stakeholders; we are identifying the priority local property tax shift that was part of this year's state projects and preparing a very competitive proposal that will budget. Our members are leading the charge to solve some be submitted for consideration. major inequalities in the implementation of the tax shift that As the old saying goes "there is strength in numbers" resulted in many of the districts in the Santa Ana region and as we all continue to work even closer together there is having 100% of their property tax shifted as opposed to the no doubt SAWPA and our members and stakeholders will agreed upon 40% shift. continue to be successful in achieving great things for our Together, the members and many other watershed watershed. ■ The Year In Review: Santa Ana Watershed 2004 , r The past year has brought many challenges and important achievements to SAWPA and the Santa Ana Watershed. The following is a pictorial review of the year 2004: Senator Mike Machado tours the fire damaged -- Watershed via helicopter seeing repairs at Day Creek Devastating Fire Damage t-a I in the San Bernardino 1• =" National Forest 111 Groundbreaking Ceremony yy ► Riverside/San ' Bernardino County 1 - Line Flood Control 1 Project ; Opening of the Arlington Post wildfire - -. _ Desalter Enhancements flooding in San -.x Project delivers 5 MGD Bernardino :T' r '�, of new water to the City of Norco Santa Ana Watershed Project Authority Page PROJECT UPDATE a Q G S Proposition 13 Projects Nearing Completion Proposition 13 is known throughout the county as an Santa Ana Integrated Watershed Program (IWP). The IWP is a historic ballot measure that, in many ways, changed the way regional plan that includes projects from SAWPA's five that government does business. While this is true of the member agencies, as well as the more than 100 sub- 1978 initiative by Howard Jarvis that dealt with property taxes, agencies within the region. it is also true for the March 2000 statewide water bond As we enter 2005, the 23 Santa Ana IWP projects that Proposition 13, which has in many ways changed the method have been funded by the Proposition 13 are nearing by which water agencies deliver water. completion. By June, the watershed will have fully utilized the In the past, major state-funded water projects were only $250 million in Proposition 13 funds, which has been built by the very large agencies or were major infrastructure leveraged to build $800 million in projects. These projects will projects built by the state. While mega projects like the State have created over 300,000 acre feet of new water supply, Water Project were the method of delivering water in the past, removed well over 3,000 acres of Arundo and created regional watershed planning that integrates projects for water thousands of acres of new habitat and wetlands. storage, water supply and the environment is the method of Looking forward, we have many more projects to fund the future. and build. The Santa Ana IWP is a 10-year, $3 billion program As part of Proposition 13, SAWPA and it's member that will "drought proof" the watershed. There is much more agencies achieved an historic accomplishment by securing to do, but we can be proud of how far we have come and funding directly to the watershed for what has become the what has been accomplished. ■ Projects Being Selected for Proposition 50 Funding Proposal California voters passed Proposition 50 in November 2002. SAWPA successfully accomplished in Proposition 13, the 2000 Today as we prepare to enter 2005, we are happy to report the water bond. state will soon be accepting proposals from Regional agencies There are some very specific criteria in the Chapter 8 for grant funding for the Integrated Regional Water funding guidelines, which are nearly identical to the goals and Management Program. Working with our member agencies objectives of the Santa Ana IWP. We are currently identifying and stakeholders throughout the watershed, SAWPA is projects within the IWP to submit for funding from Proposition 50. preparing to submit an application for this funding to the This is a difficult process because we have so many excellent Department of Water Resources and the State Water projects that need to be built in the watershed. However, in Resources Control Board. order to be assured of receiving maximum funding, we intend While it has taken a long time to get to make funding to put forward the best integrated projects that meet all of the available, the good news is that SAWPA is ideally positioned to State's criteria. receive$50 million in the first round of funding and possibly We are putting strong emphasis on the regional nature of future funding. The Integrated Regional Water Management the project, its readiness for implementation and what level of portion of Proposition 50, Chapter 8, was patterned largely local matching funds exist. The proposals are due from regional after the Santa Ana Integrated Watershed Program (IWP)that agencies in late spring. ■ f i f, Santa Ana Watershed Conference ` �.{� ' , _ 2 r.• '��-• - .. Biodrversity Council meets in l Lake Arrowhead—Tours the ourn _ *:�, ~+ . area and shov+cases the worn ini Santa Ana Watershed a' the Santa Ana Region Awards Banquet w By March 3,000 acres of Arundo will be DWR Director Lester Snow at the removed and replaced with native habitat groundbreaking of OCWD's Groundwater saving 10,000 acre feel of water annually :; Y r• t Replenishment System Santa Ana Watershed Project Authority Page 3 MAL he mission of the National Water Research Institute Water-Quality Assessment focuses on treatment processes, (NWRI) is to create new sources of water through research including the lifecycle of product waters, biological and and technology and to protect the freshwater and marine chemical contaminants, tracking, development of devices to environments. NWRI accomplishes this mission by providing monitor quality, and associated security issues. funds to support multi-disciplinary, multi-geographic research Knowledge Management is designed to translate water- projects across the nation. science information from various sources into a language that There are four key thrust areas of research that NWRI water consumers can use to better understand and employ supports: treatment and monitoring,water-quality assessment, water development, management, and protection efforts and knowledge management, and exploratory research. decision-making processes. Treatment and Monitoring is divided into two areas: Exploratory Research focuses on new concepts for creative, decentralized water and wastewater treatment and management, non-traditional approaches to advance the water industry. and future directions for the development of community The following are research projects funded under water supplies and wastewater systems. NWRI's research program: Treatment and Monitoring systems is that contamination can occur within Optimization of Filtration Flux Rate the distribution system(such as the formation for the Production of Tide-22 of disinfection byproducts). This project will Disinfected Tertiary Recycled Water examine the best location(in regards to costs, Principal Investigators: public health,feasibility,and other criteria) Dr. Kara Nelson, University of California, Berkelefs and to place advanced technology treatment units within a water distribution system to Dr. Bahmmt Sheikh,Independent Water Reuse Consultant(California) effectively meet drinking-water goals. Due to limitations on filter loading rates on of Estrogenic and Car-ino imposed by Title 22(Water Recycling Criteria). Degradation ge genic Substances in water utilities have had difficulties in Water Using Alternative Water Treatment Technologies— delivering recycled water for irrigating Membrane Technology and Photocatalysis vegetables in Northern Monterey County, Principal htvestigaton:Dr.Heather Coleman,Dr. Greg Leslie,and Dr.Rose Amal California.This project will examine the effect University oJ'New.South Wales(Australia) of varying filter-loading rates on recycled An estrogenic substance is a substance water and address the limitations of current caused by or related to the female sex regulations on wastewater reclamation in California. hormone,estrogen. This study aims to Financial and Technological Analysis of Water Treatment investigate and develop water treatment Technology Implementation Using Distributed Optimal technologies to remove estrogenic and Technology Network DOT Net) Concepts v carcinogenic(cancer-causing)substances ( P that are not removed by current water Principal Investigators:Dr. Walter j Weber,Jr.,and ,:I treatment technologies. One specific John W.Norton,Jr., University of Michigan at Ann Arbor technology to be examined is membranes Worldwide,drinking-water supply systems treat water at centralized treatment coupled with photocatalysis(solar applications)to degrade these substances facilities and then distribute the water to users. A major drawback to these in water supplies. 10500 Ellis Avenue + P.O.Box 20865 + Fountain Valley,California 92728-0865 + (714)378-3278 + Fax:(714)378-3375 + www.NWRI-t1sA.org December 2004 Water-Quality Assessment Knowledge Management The Rate of Bromate Decomposition Feasibility Study:Applying Lawrence Livermore National in the Human Stomach,Phase H Laboratory's Practical Environmental Restoration Management Principal Investigators: Process to Watershed Management Dr.Joseph A. Cotruvo,Joseph Cotruvo and Associates,LLC,and Principal Investigator: Dr. Gilbert Gordon, Miami University(Ohio) Zafer Dnnir,Lawrence Livermore National Laboratory(California) Bromate is a probable human carcinogen that The Environmental Restoration Division of the Lawrence is introduced to the water supply as a Livermore National Laboratory has developed a practical byproduct of disinfection.Phase I of this 4, environmental restoration management(PERM)process project examined the possibility that the that has been useful in evaluating long-term costs associated human body can decompose bromate in the with different cleanup alternatives and the impacts of stomach before it harms the kidney. Phase 11 regulatory changes.This study will investigate whether the will study the rates of decomposition,as well PERM process can be applied to water reuse,desalination, as examine several other common chemicals and salinity management issues. found in drinking water and food that may be altered in the stomach. Salt Management Guide for Landscape Irrigation Dynamics of Point and Nonpoint Source Fecal Pollution with Recycled Water from an Urban Watershed in Southern California Principal Investigator•Dr.Kenneth K Tanji, University of California,Davis Principal Investigator• Although recycled water is an acceptable source of water for Dr.Stanley B. Grant, University of California,Irvine non-drinking purposes,there is reluctance by consumers to A growing number of Southern California's rivers,estuaries, use it for landscaping. This project aims to educate the C and coastlines are impaired by fecal indicator bacteria, public and landscape industry about using recycled water in ,�� which often results in swimming advisories and the closure place of our limited drinking-water supplies for irrigation of shellfish harvesting areas.This project will examine how practices and to develop a salt management guideline for storms affect fecal indicator bacteria sources,ecology,and landscape professionals unaware that the salts in recycled transport within several sub-drainages of the Santa Ana River watershed. water are not excessive and will not harm landscape vegetation. Salinity Reduction Study Exploratory Research Principal Investigators:Kim Knight and Dr.David S.Kung, Recovery of Metal Ions from Membrane Concentrates Claremont Graduare University(California) by Dendrimer Enhanced Filtration The concentration of dissolved salts in water Principal Investigator-Dr.Mamadou S.Diallo, Gtlijornia hutitwe of Technology 1( supplies has increased throughout the Western r � PP >� Membrane treatment technologies like averse osmosis separate iE • ow . United States,particularly in Southern contaminates from purified water;however,the separated .► `' California. This project is focused on reducing contaminates(known as"membrane concentrates")are salinity by developing tools to allow utilities to classified as industrial wastes,making their disposal a chal- implement cost-effective salinity management lenge to the water industry. This study will examine the plans. Examples of tools include a public feasibility of using the Dendrimer Enhanced Ultrafiltration awareness program and reduction-of-use program (DEUF)process to recover metal ions like copper and arsenic to encourage residents use water softeners more efficiently and with less salt. (both toxins)from a broad range of membrane concentrates, including brines and backwash. Evaluation of Riverbank Filtration Performance Under Extreme Environmental Conditions:An International Collaboration Pacific Rim "Quantum Leap" Principal Investigator:Dr. Chinarwn an Ray University oj'llanvaii at Maimo Collaborative Membrane Research Partnership Riverbank filtration(RBF)is growing in popularity as a preferred treatment technology for removing contaminants from surFace water NWRI has brought together the Pacific Rim nations of Australia,China, supplies;however,the environmental conditions in which Japan,Singapore,and the United States RBF systems operate in western countries are different from to collaborate on research projects focused , those in developing countries,where flooding and pollution '. , on Nanorechnology Enhanced Water are major problems. This project is a collaboration among Membrane Systems(NEWMS),with the U.S.,European,and Indian researchers to study the goal of improving and enhancing performance of an RBF system along a severely polluted membrane treatment technologies over the river in India. next 5 years. NWRI accepts research project proposals in the spring(deadline March 1)and fall(deadline September 1)of every year. Research project proposal application forms are available at www.NwRj-um.org under "Research." _y CALF A tA1 d MAM 925 L Street, Suite 1400 Sacramento,CA 95814 PH:(916)446-0388—FX:(916)4484808 www.casaweb.org � 0 : 0 � t January 11,2005 STATE CONTROLLER'S OFFICE MEETS WITH SPECIAL DISTRICT ORGANIZATIONS Representatives of ACWA, the California Special Districts Association(CSDA), the California Association of Sanitation Agencies (CASA), California State Association of Counties and individual county auditors met January 6 with officials from the California State Controller's Office and Department of Finance to review the calculations used for special districts as part of the property tax shift(ERAF III). State Controller's Office staff who delivered the presentation were John Korach,bureau chief, Accounting/ Reporting,and Wayne Beck, section manager, Local Government Reporting Section.The State Controller's Office stated that the presentation was intended to accomplish three things: 1. Brief special district representatives on the exact process and calculations used in fulfilling the statute to shift$350 million from special districts to the state. 2. Discuss issues associated with the methodology used. 3. Discuss ideas for process improvement. A key point that was made at the outset of the briefing and throughout the presentation is that while the State Controller's Office is open to process improvements and wants to encourage special districts to notify the State Controller's Office regarding errors contained in the Controller's report used for the calculations,no changes will be made to the formula or the share of property taxes to be shifted in 2004-05 and 2005-06.Those amounts will not change.The amount designated to be shifted for each special district will remain the same in both years. Presentation Details Wayne Beck told special district representatives that the State Controller's job was to fulfill the authority granted in AB 2115,Chapter 610.The statute states: ■ Shifts$350 million of property tax from special districts to the State of California. (Revenue and Taxation Code 97.72 &97.73) ■ Limited to 2004-05 and 2005-06 fiscal years. ■ State Controller's Office calculates. Department of Finance notifies County Auditors. The published data used for the"universe of special districts" is the 2001-02 Special Districts Annual Report.If the data was not available in that report,the most recent data available on a given district was used. In qualifying districts for the calculation, the State Controller used Section 97.72 (c ) (1) and Section 97.73 (c ) (1)to define enterprise and non-enterprise districts. Districts exempted from the shift as a result of the statute included(1) fire protection, (2)police protection, (3) pest control, (3)pest control, (4)library,and(5)memorial. Transit enterprise districts were limited to a reduction of 3% of total enterprise property tax. Exempted districts were removed from the"universe"of total districts. Therefore of the 4,750 total special districts, 1,696 qualified to be included in the calculation. F i Calculation ■ 10% of reported non-enterprise property tax ■ Cannot exceed 10%of total revenues for enterprise districts ■ Transit at 3%of property tax Total revenues means revenue from"whatever source"and includes: ■ enterprise and non-enterprise property taxes ■ operating and non-operating revenues ■ pass-through revenues ■ grants After the initial calculation,the non-enterprise districts had reached $49.7 million at the 10% level and were capped. Enterprise districts reached$193 million. AB 2115, Chapter 610, Section 97.72(a)(2)stated: "the remaining portion shall,as many times as necessary,be applied in proportionate shares among those enterprise special districts,other than transit districts, for which the 10-percent limitation has not been reached until a $350 million reduction has been applied." Results ■ 334 districts lost 100%of their eligible property tax revenues. ■ 276 districts reached 10%of total revenues prior to losing 100%of their property taxes. Lessons Learned/ Next Steps As a result of contact with ACWA, CSDA, CASA and their individual members,officials from the State Controller's Office and Department of Finance understand that errors do exist in the report and that unintended consequences have arisen for districts. In an effort to improve the data reported to the State Controller by districts and to better understand the anomalies that have surfaced and the hardships that have occurred among districts,the State Controller's Office,working with ACWA,CSDA and CASA are working together on the following: ■ A series of workshops around the state focused on understanding the State Controller's Reporting for special districts and how to prepare information submitted. ■ Districts are asked to report to the State Controller's Office any errors they have discovered in their reporting or in the State Controller's report. Corrected data and a letter should be submitted.Again,the calculation for the shift will not be changed as a result of any corrections, however the State Controller's Office wants to ensure their information is accurate for the future. In addition, ACWA, CSDA and CASA are working to compile a list of anomalies, and will be sharing that list with the State Controller's Office. Once completed,the list will be sent to districts who will then be asked if they are experiencing any of those specific anomalies.The associations also will be developing recommendations for changes to the format of the State Controller's Report for special districts that will more accurately report the unique financial structure of districts. Contacts: Wayne Beck, State Controller's Office(916) 323-2365,wbeck Rgsco.ca.gov, Mike Dillon,CASA, (916)446-0388, mfdillon(Rnifdillon.com We will keep you informed. Ensuring Clean Water for California ®RANGE COUNTY 2 Park Plaza,Suite 100•Irvine,California 92614-5904 BUSINESS COUNCIL phone:949.476.2242•fax:949.476.9240•url.•wwwockorg _ 91RAa_MSAoI A-C- _ po w 14 = te MEMORANDUM F�"�'�gTorg S. l-o DATE. January 13, 2005 a°,3 6 p/y a TO: Board of Directors ` --{ Z FROM: Executive Policy Committee on Advocacy Issues SUBJECT: Refined 2005 Advocac Priorities l+ � ..r m � ,��y,r �,,� �"'_: '+�-a .u+ ,��a��.:�. ?r3c S4ka"_3 t y { r V v.' 5,izcs35aiswl:F �C ApP&,� MY s Recommendation: � p of D(Rff�A A. Establish the OCBC's 2005 Advoca-cx Priorities as: .f,o �NMJri� N`FAeCA��� �� Ca 0,. ' ■ Crisis Management �-- /NI,K ■ Local Infrastructure, highllg ting the Measure M program renewal ■ Local Workforce Housing ■ Local Workforce Preparation Issues B. Direct staff to prepare specific work plans for the housing, infrastructure, and workforce issues well-defined statement of purpose or objective, metrics on areas for local leadership and statewide partnering opportunities issues and to deliver the programs of work to the OCBC Executive Committee for action February 10, with a report to the full Board of Directors on March 10. Background: As part of the Orange County Business Council's five-year futures project, significant effort by the Board, OCBC member companies, outside consultants, and staff has focused on sharpening OCBC deliverables and to sharply focus OCBC advocacy efforts. A key element of defining the advocacy program was appointment of a special Chairman's Committee of Advocacy, chaired by Parker Kennedy, and including a special panel of Chief Executive Officers of leading Orange County companies. In a penultimate step to finalize the 2005 work program, a group of 12 business leaders met at the First American corporate offices in Santa Ana on November 29t" to discuss priorities for 2005 (Attachment A lists the Executive Policy Committee). A day later, more than 100 business and community leaders met at the Center Club in Costa Mesa and heard a bi-partisan group of political insiders discuss what to expect in Sacramento in the coming year. After hearing the presentations and reviewing a list of potential issues and areas of business concern, a committee of eight OCBC leaders (Blake Anderson, Steve Bone, Kim Burdick, Tom Phelps, Hal Snyder, Rick Stephens, Terry Theologides and Peter Villegas) met on January 11 to put a finer point on the proposed advocacy program and to establish priorities for staff and board advocacy efforts in SHAPING ORANGE COUNTY'S ECONOMIC FUTURE Board of Directors January 13, 2005 a Page 2 2005. This report summarizes the work done at those three meetings, which were co- hosted by OCBC members Parker Kennedy of First American and Tom Phelps of Manatt, Phelps, and Phillips. Discussion: Working from a discussion document included in the mailed Board of Directors agenda packet, the Chairman's Committee on Advocacy Priorities worked to winnow down the 2005 Advocacy priorities using three criteria: • Timeliness of issues • Impact on the Orange County business community • Potential for success Additionally, the committee focused on previous work done by the Board of Directors and interviews conducted by H. Fred Mickelson of Corral Creek Consultants in establishing areas where the OCBC would lead, partner, and support. (Issues where the Board of Directors takes an oppose position or chooses to go neutral on a matter will be handled on a case-by-case basis.) In general, the committee determined that focus areas where the OCBC will play a major leadership role should have a clear connection to improving the Orange County business climate and environment. The emphasis of the bi-partisan advocacy program is less about location — Sacramento, Santa Ana, or Washington, D.C. —and more about the positive impact the advocacy program has on Orange County businesses. Orange County Business Council advocacy programs and initiatives will be driven by both a short-term and long-tern opportunities and will be crafted in a non-partisan fashion designed to achieve enduring success. In terms of specific legislation, OCBC will work directly with elected officials on legislative efforts that result in improved workforce capabilities, improved infrastructure, and greater housing opportunities. Other legislative priorities will be defined within the Crisis Management program, The committee also expressed concern that the four general categories recommended for Board action: crisis management, housing, infrastructure and work force, may still be overly broad and should be refined in even greater detail so results could be clearly measured. Within the four categories selected, the Chairman's Advocacy Committee recommended that areas of primary emphasis be delineated in more specific detail prepared by individual focus area chairmen, using a standard, one-page format. Some areas of activity were readily agreed upon by the Chairman's Committee. For example, in the infrastructure category, the development of a Measure M transportation expenditure plan and the renewal of the countywide transportation funding program were identified as the major priority. In workforce, improved alignment of existing resources emphasizing the need for better math and science skills was urged as a top priority. In housing, setting a goal for the number of housing starts in the county and championing workforce housing opportunities was stressed. Using these guidelines, and building on previous work done by the OCBC and others, specific one-page descriptions of each advocacy priority area will be developed. Each of the one-page Board of Directors January 13, 2005 Page 3 descriptions will include a specific, overall objective crafted by a group chaired by the focus areas Vice-Chair and a group of Board members and investors involved in the focus area. The Chairman's Committee on Advocacy also recommended that the OCBC devote time and resources to crisis management. In any given year, unanticipated issues emerge that require swift response and, in some cases, require significant staff resources. The development of these issues is difficult to gauge early in any given year and may include some specifics included in the other broad categories discussed in the Advocacy briefing paper. In any given year, health care, electricity, worker's compensation or some other significant business issue may emerge quickly and may require decisive action from the OCBC. Staff workloads will be balanced to deal with these unanticipated issues and opportunities presented within the Crisis Management program. To support these focus areas, OCBC events and legislative efforts will be keyed to the four major areas. Awards at the OCBC's Annual Dinner, issues considered in OCBC- driven and OCBC-supported legislation, the efforts of BIZPAC and lobbying trips to Sacramento, and other OCBC activities will place a priority on these focus areas. Whenever appropriate, the OCBC will enlist statewide partners with broad and differing perspectives to pursue the objectives detailed in the focus areas. Among the 2005 activities anticipated in each broad advocacy area are: Leading in Infrastructure by • Leading development of a Measure M expenditure plan, consistent with preparing a renewal of the transportation f ndin program on the November 2006 ballot; -LE ! ?' f{�S rem u�-C�� ?�r-at;� • Leading development of a countywide telecommunications strategy, based initially in Santa Ana than scaled towards all of Orange County; • Partnering with other Orange County groups on a 2005 infrastructure report card; . Conducting countywide polling on major infrastructure projects and determines public attitudes towards infrastructure investment. R8 '''011q= ' 75'-/ 2sK MvlScaVs.c S Leading in Workforce Housing by C44NL7- 041Cia4 b Yd :9Zt=1!W14id V F— fte/Ll_ " TH-M rmQ 5 ,q.crta,*J . • Leading efforts to strengthen the links between homeownership and employee attraction and retention; • Incubating the Orange County Affordable Home Ownership Alliance's efforts to expand housing opportunities countywide with special emphasis on first-time homeowners; Board of Directors 1. IA,,eST ggft ,Gch- January 13, 2005 - A^'ffeo" Page 4 • Partnering with First American Corporation on a housing indicators program; • Partnering with other agencies in the Jobs Center Housing Coali ion on State Legislative issues; g�/ S �NLT`m f7- {CS Wsq to-up s CI"RT' • Conducting an Annual summit of developers, cities and non-profit housing XP ter. organizations to find solutions and identify opportunities for workforce housing. MoctV+t5 Leading in Workforce Development by 6r--r (i.XeS • Building coalitions that drive better alignment and integration of workforce and education interests that result in a stronger work force to meet Orange County business needs, including o Partnering with Pacific Life and the Orange County Work Force Investment Board on a nurse training capacity initiative o Partnering on a Latino Education Initiative that provides Latino parents the tools they need to improve their children's education and prepare them for the Orange County work place. • Conducting an annual event featuring actions focused on improving math and science skills to meet the needs of a technology-based work force; • Preparing an annual State of the Workforce report and conducting a conference to showcase the report; If these three focus areas are approved by the Board of Directors January 13, one-page descriptions of each focus area will be developed, along with a defined objective that details 2005 expectations, lists anticipated timelines and also outlines measurable f goals for 2005. A description of a Crisis Management program will also be developed. 1 These one-pagers will be presented to the OCBC Executive Committee for discussion WtIJ and refinement February 10, with final approval of the focus area description and 1 . individual measurements by the OCBC Board of Directors March 10. s c r ,�� mcg� ORANGE COUNTY 2 Park Plaza,Suite 100• Irvine,California 92614-5904 BUSINESS COUNCIL phone:949.476.2242 • fax:949.476.9240 •urku,mw.ocbc.org MEMORANDUM DATE: January 5, 2005 TO: Board of Directors FROM: Stan Oftelie, President & CEO SUBJECT: Election Results for 2005 OCBC Board of Directors Recommendation: Receive and file. Discussion: Per OCBC Bylaws, a slate of candidates for the 2005 Board of Directors were nominated and submitted to the general membership for vote on December 1, 2004. All the responses were tabulated and recorded and the following candidates have been elected to 3 year terms beginning January 1 , 2005: Frank Ayala*, Southern California Gas Company Blake Anderson*, Orange County Sanitation District Robert Bein*, RBF Consulting Stephen Berry*, Paul, Hastings, Janofsky & Walker LLP Milton Gordon*, California State University Fullerton Gary Green*, California Bank & Trust Bill Habermehl*, Orange County Department of Education Steve Lenzi, Automobile Club of Southern California Gene Mori, Bank of America Eric Parnes, PricewaterhouseCoopers Richard Reisman*, Orange County Business Journal Mel Rogers*, KOCE Bert Salazar, AXA Advisors Peter Villegas*, Washington Mutual * Existing term expired, elected to new 3 year term As per the bylaws, the 2005 Executive Committee are as follows: Chairman of the Board, Peter Villegas, Washington Mutual Chairman Elect, Thomas Phelps, Manatt, Phelps & Phillips, LLP SHAPING ORANGE COUNTY'S ECONOMIC FUTURE Board of Directors January 5, 2005 Page 2 Immediate Past Chairman, Steve Bone, The Robert Mayer Corporation President, CEO & Secretary, Stan Oftelie Treasurer, Dan Miller, The Irvine Company Vice Chairman, Advocacy, Ron DiLuigi, St. Joseph Health System Vice Chairman, Events, Frank Ayala, Southern California Gas Company Vice Chairman, Infrastructure, Blake Anderson, Orange County Sanitation District Vice Chairman, Research & Communications, Linda Martin, Porter Novelli Vice Chairman, Strategic Planning, Gregory Lynch, Cisco Systems Vice Chairman, Workforce Development, Rick Stephens, The Boeing Company { OC-.,,, 20- _ i- EXECUI'IVEecto r- Boa r 05 COMMITTEE Chairman of the Board Vice Chairman, Strategic Robert K. Cole Peter R.Villegas Planning Chief Executive Officer First Vice President, National Gregory Lynch Century Financial Corporation Manager Operations Director, Southern Washington Mutual California J. Robert Fluor II Cisco Systems Vice President, Corp. &Public Chairman Elect Affairs Thomas Phelps Vice Chairman,Workforce Fluor Corporation Partner Development Manatt, Phelps & Phillips, LLP T Rick Stephens Paul Freeman 050 Senior Vice President, Internal Director of Community& Immediate Past Chairman Services Government Relations Stephen Bone* W W The Boeing Company C.J. Segerstrom&Sons President Q"' Xk ktg< 4 . The Robert Mayer Corporation VC Garrett Gin Vice President& Community President, CEO & Secretary Development Manager Stan Oftelie Dick Allen* President President Merrill Lynch Orange County Business Council DIMA Ventures, Inc. Milton A.Gordon, Ph.D. Jo Ellen Allen, Ph.D. President Treasurer Director of Public Affairs a i ornia State University, -moan Miller Southern California Edison Fullerton -nior Vice President-Entitlement ^ and Public Affairs Company Gary Green The Irvine Company Jeff Ball Senior Vice President& Manager Vice Chairman,Advocacy Executive Vice President California Bank&Trust Ron DiLuigi Far East National Bank William M. Habermehl Regional Vice President, CountySuperintendent of Schools Advocacy and Community CEORobert Bein range County Department of Benefit Education Joseph Health Syste RBF Consulting Vice Chairman, Events Stephen Berry Rudy Hanley Frank B.Ayala Partner President OCTFCU & CEO General Manager Paul, Hastings, Janotsky& Walker LLP Southern California Gag Company Christine Diemer Iger, Esq. Vice Chairman, Infrastructure Edgar S. Brower* Iger&Associates Inc. Blake Anderson CEO Parker Kennedy General Ma a er eTrak Corporation President& CEO Orange County Sanitation Distri Larry Buster First American Financial Vice Chairman, Research & Vice President/County Manager First American Title Company Dennis Kuhl Fi Communications President Linda Martin Angels Baseball Executive Vice President& Peter Case* General Manager Managing Director, Advisory Dorter Novelli Division Merrill Lynch Tt{�'t Dn �- Gt&ZS *Director Emeritus iO2 v$ -d r ` O BC- 2000 J�, I-Ro a of,, * Rosemary Turner Steve Lenzi Robbin Preciado District Manager, South California Senior Vice President Regional Pesident District Public Affairs Wells Fargo United Parcel Service Automobile Club of Southern California Richard Reisman Wayne D.Wedin* Publisher& CEO President Thomas P. Merrick* Orange County Business Journal Wedin Enterprises President Strategic Planning Assoc. Mel Rogers Nick Yocca President President Thomas Mitchell Stradling, Yocca, Carlson & Rauth Vice Chancellor, University Advancement Bill Ross* Dean Zipser, Esq. niversity of California, Irvine Chief Executive Officer Managing Partner Insurance Industry Charitable Morrison & Foerster LLP Dave Montlerth Foundation Vice President and General Manager Bert Salazar Cox Business Services Executive Vice President AXA Advisors, LLC Gene Mori C "Ienior Vice President Ruben A. Smith nail Business Market Manager Managing Shareholder r3ank of America Alvarado, Smith & Sanchez Thomas H. Nielsen* Ray M.Stafford President Executive Vice President and The Nielsen Company General Manager Freedom Orange County Kristin Nolt Information Sr. Vice President of Public Affairs Bill A. Steele The Disneyland Resort Principal Deloitte&Touche LLP Michele E. O'Leary Senior Vice President, Regional Bob Tarlton Manager Community Affairs Manager Union Bank of California Ford Motor Company Jeffrey Oderman Jeff Thomas Managing Partner Partner-in-Charge Rutan &Tucker LLP Gibson, Dunn &Crutcher LLP Eric Parries Doug Tuggle Assurance Partner Dean, The George L. Argyros PricewaterhouseCoopers S C 5conomics hapman University 'Director Emeritus �r y ORANGE COUNTY SANITATION DISTRICT PERIOD: December 1, 2004— December 31, 2004 TO: PDC Committee FROM: David A. Ludwin, P.E. Director of Engineering STAFF CONTACT: Larry Rein CONSTRUCTION PROGRESS • Bushard between Banning and South Hamilton: o Final asphalt cap and striping was completed December 10, 2004. Epoxy repair of discovered bell cracks have been completed. • Bushard between North Hamilton and Panacea: o During December, 200 feet of 108-inch pipe were installed. Street restoration work proceeds and is expected to be completed by the end of January 2005. Bell crack epoxy repairs have been completed. • Summary Progress to Date (See Weekly Status Report For November 26, 2004 in Communications Department Package) o 108-inch pipe: 7,284 ft of pipe have been installed. Pipe has been installed to the Panacea/Bushard intersection (1,275 feet north of Hamilton/Bushard intersection). Pavement restoration is complete to Waterfront Drive. • Bushard Work Stoppage o Once the site restoration work is completed to Panacea/Bushard intersection, the work is expected to be stopped until new 108-inch pipe becomes available. The Contractor will remove the construction equipment from the street. New pipe is expected to be available within three to five months. TECHNICAL/PROBLEM SOLVING ISSUES: • Submittals Reviews o The 108-inch pipe submittal received on October 6, 2004 was returned to the Contractor on December 8, 2004. OCSD accepted the submittal; however, OCSD had comments on the submittal that the Contactor needed to address. The Contractor submitted a response to these comments on December 23, 2004. The response is currently under review by OCSD and Boyle Engineering. The review should not delay starting the manufacturing process for the new pipe. o The Contractor addressed comments on the revised submittal for the 96-inch pipe on December 21, 2004. Boyle Engineering and OCSD are reviewing the information. o On December 9, 2004, the Contractor submitted a proposal for using steel bands on the previously manufactured pipe that was rejected by OCSD. OCSD rejected this proposal on December 22, 2004. The Contractor protested the rejection on December 30, 2004. The protest is currently under review. COMMUNITY OUTREACH/ PUBLIC CONCERNS: • Construction Notifications o Final paving on Bushard between Banning and Hamilton was distributed December 2, 2004. o Mailed letter to the residents/businesses concerning the work stopping during early January—distributed January 11, 2005. • Weekly Updates (4) o December 3, 2004 o December 10, 2004 o December 17, 2004 o December 23, 2004 • Property Damage Complaints o On December 17, 2004, the Contractor received two claims for property damage due to flooding. The claims were originally submitted to the County of Orange on October 20, 2004. The Contractor reviewed the claims and denied them. The Contractor noted that the damage claimed was over 3/10 of a mile from the work they were doing, the claim area was uphill of the work they were doing, and the type of restriction placed in front of the storm drains was not the type of barriers they used. The Contractor also noted that another Contractor was doing work for the City of Huntington Beach in the area of the claims and that the other Contractor could have been responsible for blocking the storm drains. o To date, OCSD has received 92 complaints. Of the 92 complaints, 66 have filed claims with OCSD risk management. None of these claims were settled or denied by Rados' insurance companies during December and only one complaint has been settled to date. LEGAL ISSUES AND CONCERNS: • Homeowner Claims o To date, 61 of the claims submitted to OCSD risk management are represented by legal counsel, Masry & Vititoe. Each of these claims was for unspecified damages and was in the amount of 2 million dollars. • Liquidated Damages o During December, Change Orders 11 and 12 which extend the contract time 76 calendar days were approved. o Liquidated damages continued to accrue at the rate of$2,000 per calendar day, for a total of$406,000 from June 11, 2004 to the end of December. o To date, specific site work liquidated damages were also accrued for work on Adams Avenue ($237,000) and Hamilton Avenue ($1,000). The liquidated damages on Adams Avenue may be adjusted for justifiable delays. • Other Legal Issues o The report on the dewatering and vibration study to address allegations of damage to adjacent properties is expected to be available for public review in early January. LR: 1 �s ORANGE COUNTY SANITATION DISTRICT �' CONSTRUCTION NOTIFICATION NE STARTING: Monday, December 6, 2004 DURATION: 1 week WHAT: Partial Closure of Bushard Street for final asphalt paving WHERE: Bushard Street from Banning Avenue to Hamilton Avenue HAMILTON AV h- tI� G <n N m BANNING AV This construction is part of the Orange County Sanitation District's (OCSD) Bushard Trunk Sewer Project which is replacing a major, aging sewer pipeline. Please be assured that OCSD has planned construction activities in a manner that will minimize the impact to you. During this phase of construction: • Bushard Street will be partially closed for final asphalt paving. • Traffic traveling on Bushard Street will be restricted during the day. • Parking will be prohibited on Bushard Street from Banning Avenue to Hamilton Avenue. • Turns onto Bushard Street from Banning Avenue and Hamilton Avenue will be restricted. Traffic control will be provided to direct drivers where deviations apply. The partial closure will be implemented from 7:00 a.m. to 5:00 p.m. from Monday thru Friday. These closures will be removed at the end of each day and traffic will be restored. If you have any questions, please call the Construction Hotline at (714) 378-2965. For further Information about the project, or to sign up for e-Subscriptions to receive regular updates about projects near you, please visit our Web site at www.ocsd.com . Thank you for your patience during this period. a o � January 10, 2005 Dear Neighbor: The Orange County Sanitation District (OCSD) would like to provide you with an update on the current status of the Bushard Trunk Sewer Replacement project: • Construction was completed on November 15, 2004 in the Bushard Street and Yorktown Avenue intersection. • Street and sidewalk restoration and final paving were completed December 10, 2004 on Bushard Street from Banning Avenue to Hamilton Avenue. • Work on Bushard Street between Hamilton Avenue and Conrad Drive began the week of October 4, 2004. The 108— inch pipe installation has been completed. Remaining is the installation of a small sewer connection at the nursery, and final street paving. This work is expected to be completed by the end of January 2005. Once the activities listed above have been completed, construction activities will be stopped and the streets will be temporarily restored to normal traffic operations. OCSD will resume construction activities once pipe is ready for installation. We apologize for this delay, but we want to assure you that OCSD is doing everything possible to continue with the project. Once the pipe fabrication details are accepted and the pipe is available, OCSD will notify you of a start date to continue with this project. As you may recall from previous correspondence, this project is replacing a major, aging sewer line which is an important component of our community's sewer system that must be replaced. This project began at OCSD Plant No. 2 at Brookhurst Street and Bushard Street and will ultimately end at Ellis Avenue and Bushard Street. Since a new start-up date is not yet determined, OCSD will provide updates via e-mail as information becomes available. To sign up for the updates please visit our Web site at www.ocsd.com and click on e-Subscriptions. Thank you for your time and patience during this construction period. Sincerely, C), � C-;---� Jennifer Cabral Senior Public Information Specialist (714) 593-7581 From: forinformation@ocsd.com Sent: Thursday, December 02, 2004 4:45 PM To: Subject: OCSD Bushard Weekly Update- Dec 3-Dec 10 Bushard Street - 108-inch pipe installation: Banning Ave. and North-Hamilton Ave. intersection: Bushard St. is open to thru traffic between Banning Ave. and north-Hamilton Ave. intersection. Final asphalt paving and striping will be completed next week. Bushard St. will be partially closed from 7:00 a.m. to 5:00 p.m. Monday thru Friday. Traffic traveling on Bushard St. will be restricted during the day and parking will be prohibited from Banning Ave. to Hamilton Ave. Turn onto Bushard from Banning Ave. and Hamilton Ave. will be restricted. Street restoration is 97 percent complete. North-Hamilton to Conrad Drive intersection: Bushard is closed to thru traffic between Hamilton Ave. and Conrad Drive intersection. This week 132-ft of 108-inch pipe was installed. Curb and sidewalk restoration was started. Next week 108-inch pipe installation work will continue. Work is 80 percent complete. The estimated completion date has been extended to the last week of January 2005. Once the 108-inch pipe is installed up to the Bushard/Panacea intersection, Bushard will remain closed to thru traffic for street restoration. Please visit http://www.ocsd.com/civica/filebank/blobdload.asp?BlobID=4254 for an updated Construction Map. If you have any questions please call the Construction Hotline at (714) 378-2965. If you would like to be removed from this distribution list please reply to this e-mail. 1 M. Orange County Sanitation District Bushard Trunk Sewer Construction Project Weekly Status Update — December 3, 2004 Installed 108-inch Pipe and SFW Qo Completed Intersection Structures Y Current Construction Areas ELLIS AV -, Upcoming Construction Areas LAND PLANT FOR MORE INFORMATION NO ' CALL CONSTRUCTION HOTLINE (714) 378-2965 GARFIELD AV YORKTOWN AV C N J a o 2 = Y Q O � O m ADAMS AV „1 INDIANAPOLIS AV Current Bushard-Installation of 108-inch pipe. Start: October 4,2004. Estimated Completion: End of January 2005 U Bushard St.fully closed between North-Hamilton Ave and m Conrad Dr Intersection. ATLANTA Conrad or HAMILTON AV BANNING V A gC�F,C CO qST OCSD y�cy PLANT �4 NO.2 From: forinformation@ocsd.com Sent: Monday, December 13, 2004 11:35 AM To: Subject: OCSD Bushard Weekly Update-Dec 10-Dec 17 Bushard Street - 108-inch pipe installation: Banning Ave and North-Hamilton intersection: Bushard is open to thru traffic between Banning Ave. and north-Hamilton Ave. intersection. Final asphalt paving and striping was completed on Friday, December 10, 2004. Street restoration is 100 percent complete. North-Hamilton to Conrad intersection: Bushard is closed to thru traffic between north-Hamilton and Conrad intersection. This week 108-inch pipe installation was completed up to Panacea/Bushard intersection. Street restoration work is in progress. Next week street restoration work will continue. Work is 85 percent complete and estimated to be completed by the last week of January 2005. Please visit http://www.ocsd.com/civica/filebank/blobdload.asp?BlobID=4271 for an updated Construction Map. If you have any questions please call the Construction Hotline at (714) 378-2965. If you would like to be removed from this distribution list please reply to this e-mail. 1 From: fodnformation@ocsd.com Sent: Monday, December 13, 2004 11:35 AM To: Subject: 4CSD Bushard Weekly Update-Dec 10-Dec 17 Bushard Street - 108-inch pipe installation: Banning Ave and North-Hamilton intersection: Bushard is open to thru traffic between Banning Ave. and north-Hamilton Ave. intersection. Final asphalt paving and striping was completed on Friday, December 10, 2004. Street restoration is 100 percent complete. North-Hamilton to Conrad intersection: Bushard is closed to thru traffic between north-Hamilton and Conrad intersection. This week 108-inch pipe installation was completed up to Panacea/Bushard intersection. Street restoration work is in progress. Next week street restoration work will continue. Work is 85 percent complete and estimated to be completed by the last week of January 2005. Please visit http://www.ocsd.com/civica/filebank/blobdload.asp?BlobID=4271 for an updated Construction Map. If you have any questions please call the Construction Hotline at (714) 378-2965. If you would like to be removed from this distribution list please reply to this e-mail. 1 '+1hri�i. Orange County Sanitation District �'. Bushard Trunk Sewer Construction Project J Weekly Status Update -- December 10, 2004 rfF 0 Installed 108-inch Pipe and 40 lCompleted Intersection Structures SFW Y Current Construction Areas ELLIS AV _ Upcoming Construction Areas ocsD PLANT FOR MORE INFORMATION � NO ' CALL CONSTRUCTION HOTLINE (714) 378-2965 GARFIELD AV YORKTOWN AV fn N a � J N O FJ = Q Y � O O ADAMS AV INDIANAPOLIS AV Current Bushard-Installation of 108-inch pipe. e.� Start: October 4. 2004. Estimated Completion: End of January,2005 Bushard St.fully closed between North-Hamilton Ave and Conrad Dr Intersection. ATLANTA Conrad Dr HAMILTON AV BANNING V A 9C�F/C CO gsTy� ocso Cy PLANT h NO.2 From: forinformation@ocsd.com Sent: Thursday, December 16, 2004 4:18 PM To: Subject: OCSD Bushard WeeKiy update-Dec 17- Dec 24 Bushard Street - 108-inch pipe installation: North-Hamilton to Conrad Drive intersection: Bushard is closed to thru traffic between north-Hamilton Ave. and Conrad Drive intersection. Restoration work (sidewalk, curb and gutter replacement, street restoration) is in progress. Next week restoration work will continue. Contractor will suspend construction activities on December 24, 2004 due to the holiday. Work is 87 percent complete and estimated to be completed by the last week of January 2005. Please visit http://www.ocsd.com/civica/filebank/blobdload.asp?BlobID=4278 for an updated Construction Map. If you have any questions please call the Construction Hotline at (714) 378-2965. If you would like to be removed from this distribution list please reply to this e-mail. 1 Orange County Sanitation District = _ Bushard Trunk Sewer Construction Project r Weekly Status Update — December 17, 2004 F - Installed 108-inch Pipe and PQSFW Completed Intersection Structures Y ® Current Construction Areas ELLIS AV ® Upcoming Construction Areas FOUN AIN PLANT FOR MORE INFORMATION NO�I CALL CONSTRUCTION HOTLINE (714) 378-2965 GARFIELD AV YORKTOWN AV J N O Z 0 _ Q Y O O ADAMS AV 61 INDIANAPOLIS AV Current Bushard-Installation of 108-inch pipe. 71 Start: October 4, 2004. Estimated Completion: End of January,2005 Bushard St.fully closed between North-Hamilton Ave and Conrad Dr Intersection. ATLANTA V Conrad Dr HAMILTON AV BANNING V A CO 9,TP OCSD cy PLANT �4 NO.2 From: forinformation@ocsd.com Sent: Wednesdav, December 22, 2004 3:21 PM To: Subject: OCSD Bushard Weekly Status Update-Dec 23-Dec 30 Bushard Street - 108-inch pipe installation: North-Hamilton Ave. to Conrad Drive intersection: Bushard is closed to thru traffic between north-Hamilton Ave. and Conrad Drive intersection. Last week restoration work (sidewalk, curb and gutter replacement and street restoration) was completed. Next week final asphalt paving and striping will be completed. Contractor will suspend work on December 24 and 31, 2004 due to the holidays. Work is 90 percent complete and estimated to be completed by the last week of January 2005. Please visit http://www.ocsd.com/civica/filebank/blobdload.asp?BlobID=4281 for an updated Construction Map. If you have any questions please call the Construction Hotline at (714) 378-2965. If you would like to be removed from this distribution list please reply to this e-mail. 1 '{M1ll,�l Orange County Sanitation District Bushard Trunk Sewer Construction Project �F�,, N�• We Status Update — December 24, 2004 itE .vv. ® Installed 108-inch Pipe and SFW ao Completed Intersection Structures r ■ Current Construction Areas ELLIS AV _ NOUpcoming Construction Areas PCSD ANT FOR MORE INFORMATION NO.I CALL CONSTRUCTION HOTLINE (714) 378-2965 GARFIELD AV YORKTOWN AV E- Q V) J N C Z D (7 = Q 0 O O 4: ro ADAMS AV INDIANAPOLIS AV Current Bushard-Installation of 108-inch pipe. Start: October 4,2004. Estimated Completion: End of January,2005 Bushard St.fully closed between North-Hamilton Ave and Conrad Dr Intersection. ATLANTA J Conrad Dr HAMILTON AV A9 c�F�C �Sr BANNING G V 00 OCSD LNTylCy PA Wt N0.2 AGENDA BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CA 92708 REGULAR MEETING January 26, 2005 — 7:00 P.M. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Board for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or because there is a need to take immediate action, which need came to the attention of the Board subsequent to the posting of agenda. or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Board Secretary's office at (714) 593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Items Continued: Items may be continued from this meeting without further notice to a Committee or Board meeting held within five (5) days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adjournment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955 (posted within 24 hours). 1. Invocation and Pledge of Allegiance 2. Roll Call 3. Consideration of motion to receive and file minute excerpts of member agencies relating to appointment of Directors. if any. City/Agency Active Director Alternate Director Fountain Valley Larry Crandall John Collins Huntington Beach Jill Hardy Debbie Cook Irvine Sukhee Kang Steven Choi La Habra Steve Anderson Steve Simonian Midway City San, Dist. Joy Neugebauer Vivian Kirkpatrick-Pilger La Palma Mark Waldman Ralph Rodriguez Los Alamitos Ken Parker Kathryn Driscoll Newport Beach Tod Ridgeway Don Webb 01/26/05 r Page 2 Placentia Norman Z. Eckenrode Constance Underhill Stanton Harry Dotson David Shawver Villa Park Richard A. Freschi Patricia L. Bortle Yorba Linda Michael Duvall Ken Lynn Wilson 4. Appointment of Chair pro tem. if necessary 5. Public Comments: All persons wishing to address the Board on specific agenda items or matters of general interest should do so at this time. As determined by the Chair. speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Board of Directors except as authorized by Section 54954.2(b). 6. The Chair, General Manager and General Counsel present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. a. Report of Chair; consideration of Resolutions or commendations, presentations and awards b. Report of General Manager C. Report of General Counsel 7. If no corrections or amendments are made, the minutes for the regular meetings held on November 17. 2004 and December 15. 2004 will be deemed approved as mailed and be so ordered by the Chair. 8. Ratifying payment of claims of the District, by roll call vote, as follows: ALL DISTRICTS 12/15/04 12/31/04 Totals $18,814,723.70 $1,293,215.89 DIRECTORS: Pursuant to Government Code Section 84308. you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party to a contract involving OCSD. This requires that you identify the contributor by name. Further, you may not participate in the decision making process to award a contract to such party. For reference, you are directed to the Register of Warrants as to all current contractors/vendors with OCSD. For the specifics of Government Code Section 84308, please see your Director's Handbook or call the office of General Counsel. 01/26/05 Page 3 CONSENT CALENDAR All matters placed on the Consent Calendar are considered as not requiring discussion or further explanation and unless any particular item is requested to be removed from the Consent Calendar by a Director, staff member or member of the public in attendance, there will be no separate discussion of these items. All items on the Consent Calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the Consent Calendar shall be considered in the regular order of business. Members of the public who wish to remove an item from the Consent Calendar shall, upon recognition by the Chair; state their name, address and designate by number the item to be removed from the Consent Calendar. The Chair will determine if any items are to be deleted from the Consent Calendar. 9. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. (1) Receive and file petition from Russell Ellis requesting annexation of 1.12 acres to Orange County Sanitation District, in the vicinity of Santiago Canyon Road and Lolita Street, in the City of Orange; and, (2) Adopt Resolution No. OCSD 05-01, authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-46 — Ellis Annexation). b. Authorize the General Manager to execute a Reimbursement Agreement with the Orange County Transportation Authority (OCTA) to reimburse the Orange County Sanitation District (OCSD) for the design and construction support costs in connection with the OCTA Sewer Relocation Projects, Contract No. 15-01, providing for protection of existing OCSD sewers throughout the length of the OCTA SR-22 Widening Project.. for OCSD's actual staff and administrative costs. END OF CONSENT CALENDAR 10. Consideration of items deleted from Consent Calendar. if any. 01/26/05 Page 4 COMMITTEE REPORTS AND RECOMMENDED ACTIONS 11. STEERING COMMITTEE Consent Calendar a. Order draft Steering Committee Minutes for the meeting held on December 15, 2004 to be filed. Non-Consent Calendar b. Review and consideration of agenda items considered by the Steering Committee re the January 26. 2005 meeting. C. Consideration of items deleted from Steering Committee Consent Calendar, if any. 12. Receive and file Treasurer's Report for the month of December 2004. 13. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar a. Order Joint Groundwater Replenishment System Cooperative Committee Minutes for the meeting held on December 13. 2004 to be filed. GWRSSC Non-Consent Calendar b. Consideration of items deleted from GWRSSC Consent Calendar, if any. NON-CONSENT CALENDAR 14. Closed Session CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property: (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives: or which are exempt from public disclosure under the California Public Records Act. may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. a. Convene in closed session, if necessary 01/26/05 Page 5 1 Confer with James D. Herberg. Real Property Negotiator pursuant to Government Code Section 54956.8. Property: 5455 Dodds Avenue, Buena Park. California Agency Negotiator: James D. Herberg Negotiating Parties: Stage Road Limited Liability Corporation LLC Under Negotiation: Instruction re price, terms, and conditions for the purchase, sale, exchange, or lease of subject property. 2. Confer with Real Property Negotiator pursuant to Government Code Section 54956.8. Property: 10950 Virginia Circle, Fountain Valley, California Agency Negotiator: Bob Stallings, Remax Real Estate Specialists Negotiating Parties: Jim Snyder, Lee and Associates Under Negotiation: Instruction re price, terms, and conditions for the purchase sale of subject property. Contract No. 1-10, Ellis Avenue Pump Station Alternative Site B. occupied by tenant "The Best of the Best". Property: 18475 Pacific Ave, Fountain Valley, California Agency Negotiator: Bob Stallings, Remax Real Estate Specialists Negotiating Parties: Matt Fales, Bender Properties Under Negotiation: Instruction re price. terms, and conditions for the purchase, sale of subject property. Contract No. 1-10, Ellis Avenue Pump Station Alternative Site B, "Hobby People". Property: 18475 Bandlier Circle, Fountain Valley. California Agency Negotiator: Bob Stallings, Remax Real Estate Specialists Negotiating Parties: Ed Martin. Chandler Real Properties Under Negotiation: Instruction re price, terms, and conditions for the purchase, sale of subject property. Contract No. 1-10. Ellis Avenue Pump Station Alternative Site B. occupied by tenant 'Colgan Custom". 3. Confer with General Counsel re pending litigation, Orange County Sanitation District v. County of Kings. et al., Kings County Superior Court Case No. 02C0835, Government Code Section 54956.9. 4. Confer with General Counsel — Anticipated Litigation. Significant Exposure to Litigation, Government Code Section 54956.9(b): Two (2) matters. 5. Confer with General Counsel re pending litigation. Santa Ana Watershed Project Authority v. Orange County Sanitation District. Orange County Superior Court Case No. 04CC06197, Government Code Section 54956.9. 6. Confer with General Counsel re pending litigation, Orange County Sanitation District v. Santa Ana Watershed Project Authority. Orange County Superior Court Case No. 04CC0l 1345, Government Code Section 54956.9. 01/26/05 Page 6 7. Confer with General Counsel re pending litigation. Pall Corporation v. Orange County Water District, Orange County Sanitation District, Orange County Superior Court Case No. 02CC06622. Government Code Section 54956.9. 8. Confer with General Counsel re pending litigation, Orange County Sanitation District. et al. v. County of Kern. et al.. Tulare County Superior Court Case No. 189564, Government Code Section 54956.9. b. Reconvene in regular session c. Consideration of action, if any, on matters considered in closed session 15. Presentation by General Counsel — "Our Board: Stewards of the Public Interest'. 16. Matters which a Director may wish to place on a future agenda for action and staff report. 17. Other business and communications or supplemental agenda items, if any 18. Future Meeting Date: The next Board of Directors regular meeting is scheduled for February 23. 2005, at 7:00 p.m. 19. Adjournments .........................................................................................................................................................._ .-__..._.._.................................................................................................. :NOTICE TO DIRECTORS: To place items on the agenda for the Regular Meeting of the Board of :Directors, items shall be submitted to the Board Secretary no later than the close of business 14 days :preceding the Board meeting. The Board Secretary shall include on the agenda all items submitted by :Directors, the General Manager and General Counsel and all formal communications. :General Manager Blake Anderson (714) 593-7110 banderson(dDocsd.com :Board Secretary Penny Kyle (714) 593-7130 pkyle(o)ocsd.com Director/Engineering David Ludwin (714) 593-7300 dludwin(c)ocsd.com Director/Finance/Treasurer Gary Streed (714) 593-7550 gst reed(a)ocsd.com :Director/Human Resources Lisa Tomko (714) 593-7145 Itomko(a)ocsd.com :Director/Information Technology Patrick Miles (714) 593-7280 pmiles(cDocsd.com Director/Operations& Maintenance Bob Ooten (714) 593-7020 rooten(cDocsd.com Director/Technical Services Bob Ghirelli (714) 593-7400 rghirelli a()ocsd.com Director/Communications& :Administrative Services Carol Beekman (714) 593-7120 cbeekman(U-)ocsd.com ;General Counsel Thomas L.Woodruff (714) 564-2605 tlwd)wss-law.com HAdept\admin\BS\Agenda\012605 draft agenda.doc 1 c. 1 Orange County Sanitation District MINUTES BOARD MEETING NOVEMBER 17, 2004 SAW T,gT�O 4 r � C7 O --1 FC ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 Minutes for Board Meeting Page 2 ` 11/17/04 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on November 17, 2004, at 7:00 p.m., in the District's Administrative Offices. Following the Pledge of Allegiance and invocation the roll was called and the Secretary reported a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS A Steve Anderson, Chair Steve Simonian X James M. Ferryman, Vice Chair Arlene Schafer X Don Bankhead Leland Wilson X Patricia Bortle Rich Freschi X Carolyn Cavecche Steve Ambriz X Alberta Christy Mike Garcia X John Collins Larry Crandall A Bill Dalton Bruce Broadwater X Doug Davert Tony Kawashima A Brian Donahue David Shawver X Michael Duvall Keri Lynn Wilson X Norman Z. Eckenrode Judy Dickinson X Cathy Green Gil Coerper X Alice B. Jempsa Marilynn M. Poe X Beth Krom Christina Shea A Patsy Marshall Jim Dow X Shirley McCracken Bob Hernandez X Darryl Miller Peer A. Swan X Roy Moore John Beauman X Joy Neugebauer Grace Epperson X Anna L. Piercy Tim Keenan X Tod Ridgeway Don Webb X Jim Silva Chuck Smith X Paul Walker Larry Herman X Paul Yost Charles Antos STAFF MEMBERS PRESENT: Blake P. Anderson, General Manager; Penny Kyle, Board Secretary; Carol Beekman; Bob Ghirelli; Jim Herberg; Patrick Miles; Bob Ooten; Gary Streed; Lisa Tomko; Lilia Kovac; Jim Burror; Simon Watson; Layne Baroldi; Mark Kawamoto OTHERS PRESENT: Art Sikat; Ken Owrey; June Park; Ray Albert; Oscar Gonzalez; Charles Kim; Vivian Kirkpatrick-Pilger; Jim Willett Minutes for Board Meeting Page 3 11/17/04 PUBLIC COMMENTS Jim Willett, president of The Yakima Company, addressed the Board re comments made by General Counsel at the October 27, 2004 Board meeting in response to Mr. Willett's comments at the same meeting with regard to the biosolids contract currently in effect with his company. Mr. Willett also read a letter he had mailed to each Director individually outlining the dispute with his contract. REPORT OF THE CHAIR Vice Chair Ferryman recognized Directors Collins, McCracken, Piercy and Walker who would be leaving the Board due to term limits or reorganization. He thanked them for their service to the Orange County Sanitation District. Staff was thanked for their efforts in the preparation of Wes Bannister's reception to congratulate him on his appointment as Chairman of the Metropolitan Water District of Southern California. He noted that Mr. Bannister is only the second Orange County chairman to attain this honor in the agency's 75-year history. Director Ferryman requested the Board to ratify the approval of a Resolution of Commendation that was presented to Mr. Bannister. It was announced that Director Tod Ridgeway was appointed Chair of the PDC Committee; Directors Darryl Miller and Jim Ferryman were appointed to the Joint Groundwater Replenishment System Cooperative Committee; and Director Ferryman was appointed to the Council of Governments. The calendar for the working committees was reviewed for the month of December. The Urban Runoff Ad Hoc Committee was scheduled to meet on Wednesday, December 1", at 3:00 p.m. It was also noted that due to the Christmas holiday, the Board of Directors regular meeting would be held on Wednesday, December 15tn REPORT OF THE GENERAL MANAGER Blake Anderson, General Manager, reported that on November 61n the District's ocean monitoring vessel, Nerissa, was christened at the Newport Harbor Nautical Museum. Directors Ferryman, McCracken, Ridgeway, Cavecche, Jempsa and Davert attended along with 250 other people. Nerissa was custom designed and built in the state of Washington, with state-of-the-art monitoring and sampling devices and navigational aides so that years of reliable analysis of the ocean conditions off the coast can be performed. Bob Ghirelli, Director of Technical Services, reported on the newly issued ocean discharge permit and related consent decree that have been received by the District. The new permit was issued October 31, 2004, and will become effective 30 days after the public comment period. The consent decree that was negotiated with EPA and the State of California was filed in the U.S. District Court (Santa Ana) on November 151n, and consideration and approval by the Court is expected in January 2005. This brings closure to the permitting process for the decision to go to secondary treatment standards 28 months ago. The facilities must now be built to meet the December 31, 2012 deadline of the consent decree. A bi-annual report will be provided to the Board of Directors by the Engineering Department on the progress of these facilities. i Minutes for Board Meeting Page 4 11/17/04 Bob Ooten, Director of Operations & Maintenance, provided an outline of events that transpired to cause the District to discharge 1.6 million gallons of treated wastewater to the Santa Ana River on September 4, 2004. He noted that a small fire erupted in a marsh east of Plant No. 2. While putting out the fire,water was dropped on some of Edison's electrical facilities which caused a voltage drop in the electricity supplied to the treatment plants. This triggered a series of events that eventually caused the discharge. Staff has proposed 41 corrective actions in four areas (communications, equipment, process and training). Of these actions, 26 are already in place, seven are being worked on, and the remaining eight should be completed within five months to three years. Bob Ghirelli, Director of Technical Services, reported the spill occurred around 3-3:30. At approximately 5:00 p.m. the County Department of Health closed the beaches near the mouth of the Santa Ana River. The discharge was treated and disinfected wastewater. Subsequent monitoring of the ocean disclosed only a single elevated count at the mouth of the river and no violations of either the District's permit discharge limits or other discharge limit(s) provisions in State law occurred. REPORT OF THE GENERAL COUNSEL Thomas L. Woodruff, General Counsel, reported that the discharge of treated wastewater to the Santa Ana River on September 4th could result in fines assessed by the Regional Water Quality Control Board, but there are mitigating factors and he and staff would be discussing these factors with them to consider prior to assessing any fines. Mr. Woodruff also reported that litigation in connection with Woodside v. Orange County Sanitation District, et al.. Orange County Superior Court Case No. 03CC17413 has been finally settled by the payment to the plaintiff for the sum of$150,000. . Director Duvall requested Mr. Woodruff provide the cost of legal fees expended and recovered on those matters settled in the annual litigation reports. APPROVAL OF MINUTES The Chair ordered that the minutes of the regular meeting held October 27, 2004, be deemed approved, as written. RATIFICATION OF PAYMENT OF CLAIMS MOVED, SECONDED AND DULY CARRIED: Ratify payment of claims set forth on exhibits "A" and "B", attached hereto and made a part of these minutes. ALL DISTRICTS 10/15/04 10/31/04 Totals $7,664,711.58 $11,569,193.59 Director Davert abstained from discussion and voting on Warrant No. 66055. Director Jempsa abstained from discussion and voting on Warrant Nos. 65623 and 65922. Directors Eckenrode and Green abstained. Abstentions were pursuant to California Government Code Section 84308. Minutes for Board Meeting Page 5 11/17/04 CONSENT CALENDAR 9. a. MOVED, SECONDED AND DULY CARRIED: (1) Receive and file petition from Rene Bollen requesting annexation of 1.30 acres to Orange County Sanitation District, in the vicinity of Randall Street and Meads Avenue, in an unincorporated area of Orange County; and, (2)Adopt Resolution No. OCSD 04-27, authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-45— Bollen Annexation). b. MOVED, SECONDED AND DULY CARRIED: Ratify the purchase of an easement from the County of Orange Resources Management Development Department for the Effluent Pump Station Annex, Job No. J-77, in an amount not to exceed $7,500, in a form approved by General Counsel. COMMITTEE REPORTS AND RECOMMENDED ACTIONS 11. DRAFT STEERING COMMITTEE: A verbal report was presented by Director Ferryman, Vice Chair of the Steering Committee, re the November 17, 2004 meeting. Vice Chair Ferryman reported the Legislative Affairs Committee is continuing to meet. Board Chair Steve Anderson is in Washington, DC doing rounds with members of the Orange County delegation. Action on the VA-HUD appropriations bill, which also contains EPA appropriations, should be finalized that week. This bill contains $700,000 for the District's secondary treatment upgrades. District's consultants are trying to get this amount raised to $1 million. Blake Anderson, General Manager, and Thomas L. Woodruff, General Counsel, provided a six-month status report on legal services to the Steering Committee for review. The General Manager also provided an update on the response to the Huntington Beach Visitors and Convention Bureau's request for public relations funds. At the prior direction of Chair Anderson, this issue would be considered at the FAHR Committee meeting to be held on December 8, 2004. Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order the Steering Committee Minutes for the meeting held on October 27, 2004 to be filed. Non-Consent Calendar No items considered. Minutes for Board Meeting Page 6 11/17/04 12. OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE (OMTS) OMTS Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on November 3, 2004 to be filed. b. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 2 to the Consulting Services Agreement with Brown and Caldwell Consulting, providing for additional consulting services in connection with the Santa Ana Regional Water Quality Control Board's newly adopted Waste Discharge Requirements, for an additional amount of$730,000 to include a $100,000 contingency, increasing the total amount not to exceed $1,430,000 for the time period of January 1, 2005 thru December 31, 2005. C. MOVED, SECONDED AND DULY CARRIED: Approve Memorandum of Understanding with South Orange County Wastewater Authority for Phase 1 of the South Orange County Composting Facility for an amount not to exceed $69,637, to be shared equally with South Orange County Wastewater Authority, in a form approved by General Counsel. OMTS Non-Consent Calendar No items considered. 13. PLANNING, DESIGN AND CONSTRUCTION COMMITTEE (PDC) PDC Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Planning, Design and Construction Committee Minutes for the meeting held on November 4, 2004 to be filed. b. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 5 to Warner Avenue Relief Sewer, Contract No. 11-22, with ARB, Inc., authorizing a deduction of$308,378, decreasing the total contract amount to $5,198,580. C. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 1 to Gisler-Redhill Trunk Improvements, Reach "A", Contract No. 7-36; Orange Trunk Improvements, Contract No. 7-39; Gisler-Redhill/North Trunk Improvements, Contract No. 7-41; and City of Tustin Project Nos. 6106 and 6151, with ARB, Inc., authorizing an addition of$349,612 and 20 calendar days, increasing the total contract amount to $18,725,611. d. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 10 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, with Steve P. Rados, Inc., authorizing an addition of$242,360, increasing the total contract amount to $31,911,805. Minutes for Board Meeting Page 7 11/17/04 e. MOVED, SECONDED AND DULY CARRIED: Approve Professional Services Agreement with Malcolm Pirnie, Inc. for preparation of a Preliminary Design Report for the Coast Trunk Sewer Rehabilitation, Contract No. 11-26, for an amount not to exceed $2,219,330. f. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 2 to the Professional Services Agreement with Camp, Dresser& McKee for Rehabilitation of Odor Control Facilities, Job No. J-71-8, providing for modifications to the scope of work for an additional amount of$645,674, increasing the total amount not to exceed $4,220,881. g. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 7 to the Professional Services Agreement with Boyle Engineering Corporation for Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, providing for additional engineering construction support services for an additional amount of$326,509, increasing the total amount not to exceed $2,345,920. h. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 1 to the Professional Services Agreement with Fluor Enterprises, Inc. for Electrical Equipment Refurbishment and Protection, Job No. SP-81, providing for additional engineering services for an additional amount of$128,549, increasing the total amount not to exceed $214,049. i. MOVED, SECONDED AND DULY CARRIED: Approve Professional Services Agreement with Black & Veatch Corporation to provide an Energy Master Plan for the Treatment Plant Strategic Plan Update, Job No. J-102,for an amount not to exceed $1,894,660. PDC Non-Consent Calendar j. Blake Anderson, General Manager, reported the District is getting close to build- out conditions in the service area and for the first time in 50 years of the Sanitation District, careful consideration must be given to how large to build the facilities. For most of these 50 years, the District has been planning, funding and building the current facilities. In the next ten years an additional $2 billion of system upgrades and replacements, the move to secondary treatment standards and providing for some capacity to meet the expected population growth in the service area and in the SAWPA service area of the Inland Empire should be in place. The General Manager reported that for any future capacity increases in the District facilities, it will be using more detailed analysis of needs in order to insure that new facilities construction does not exceed known needs. Jim Herberg, Engineering Manager, provided background for the long-term strategic planning that was completed in 1999 and 2002 to bring the District to 2020 for capital improvements related to flows. Two sources are utilized for projecting flows: 1) Orange County member agencies; and 2) contracting agencies such as Irvine Ranch Water District and SAWPA. The District has historically constructed facilities for these contracting agencies to use when they need them based on the flow projections they've provided the District. The Minutes for Board Meeting Page 8 11/17/04 facilities are built by the District which advanced all the costs of the projects, relying on these agencies to use these facilities and to purchase the capacity. Both the total flows and the IRWD and SAWPA flows projected in the 1999 Strategic Plan and the updated flows in 2002 have not materialized. The population in Orange County is increasing, but the individual households aren't generating as much wastewater as in the past. The bulk of future flows are projected to come from IRWD and SAWPA. SAWPA has discussed plans to pull all of their flow out of the SARI line requiring only disposal capacity in the outfall, rather than the 30 mgd of treatment capacity that has been included in our 2020 flow projections. The original plans for capacity needed for secondary treatment at Plant No. 1 was 90 mgd for all of the projected flows, and the plan for the first project was to build for 80 mgd by 2012, and provide for an additional 10 mgd by 2020. Mr. Herberg noted that staff is now recommending to build the first expansion for 60 mgd which will be completed in 2012. This expansion would accommodate 13 mgd from SAWPA and 10 mgd from IRWD, and the project would be designed to be readily expandable to 80 mgd. In addition, staff was recommending a policy be established that facilities not be built in advance of when the contracting agencies need the facilities. Staff would work closely with these agencies, monitoring their plans and trying to more closely coordinate the time when expansion will be needed. The estimated savings by the District for what wouldn't be built by 2012 would be between $50-70 million of new secondary and solids treatment facilities at Plant No. 1. Every year this is delayed, the District would realize a savings of approximately$2.5 million in interest payments as funding for these projects is partially through debt. Staff would also endeavor to clarify the agreements with the contracting agencies about the terms under which they can increase their flow, when the money is collected from the agencies, when the facilities are built and the commitment the District would require. MOVED, SECONDED AND DULY CARRIED: Concur with Staff recommendation to: (1) Revise the 1999 Strategic Plan Year 2020 flow projection for treatment capacity to provide 13 million gallons per day (mgd) of capacity for the Santa Ana River Watershed Project Authority and 10 mgd from Irvine Ranch Water District; (2) Design Plant No. 1 Secondary Treatment Expansion, Job No. P1-102, for a first phase capacity of 60 mgd, with provisions to allow expansion to 80 mgd in the future; and, (3) Establish a policy regarding the two contract agencies served by Orange County Sanitation District (OCSD), such that OCSD will plan, design, and construct new facilities based on the formally adopted plans of the agency. Minutes for Board Meeting Page 9 0 11/17/04 14. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (FAHR) FAHR Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Finance, Administration and Human Resources Committee Minutes for the meeting held on November 10, 2004 to be filed. b. MOVED, SECONDED AND DULY CARRIED: Receive and file Treasurer's Report for the month of October 2004. C. MOVED, SECONDED AND DULY CARRIED: Receive and file the Quarterly Investment Management Program Report for the period July 1, 2004 through September 30, 2004. d. MOVED, SECONDED AND DULY CARRIED: Receive and file the 2004-05 First Quarter Financial Report for the period ending September 30, 2004. e. MOVED, SECONDED AND DULY CARRIED: Receive and file the SWAP Report for the quarter ended September 30, 2004. f. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 04- 28, Amending Resolution No. OCSD 98-33, Amending Human Resources Policies and Procedures Manual, providing for: (1)Approve the reclassification of one Public Information Specialist position to Senior Public Information Specialist at pay range 76 ($5,266— $6,582); and, (2)Approve the reclassification of one Associate Engineer III to Engineer at pay range 84 ($6,415 —$8,018); and, (3)Approve the upgrade of one Senior Engineer position to Engineering Supervisor at pay range 92 ($7,817— $9,771); and, (4) Approve the pay range placement of the Director of Communications and Administrative Services at pay range 101 ($7,557—$11,336). g. Item removed from agenda by the General Manager. h. MOVED, SECONDED AND DULY CARRIED: Direct staff to proceed with no change in name or logo, no added tag line, and develop an identity standards manual at a cost estimated between $5,000 to$7,500 in connection with the Corporate Identity and Public Awareness Project, Specification No. CS-2003-16261). i. MOVED, SECONDED AND DULY CARRIED: Receive and file FY 03/04 Comprehensive Annual Financial Report. Minutes for Board Meeting Page 10 ' 11/17/04 FAHR Non-Consent Calendar No items considered. NON-CONSENT CALENDAR 15. Consideration to adopt Ordinance No. OCSD-24, An Ordinance of the Board of Directors of Orange County Sanitation District, Adopting Revised Table G re Permittee Charges for Use and Reaffirming All Other Charges: "An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Sanitary Sewer Service Charges; Establishing Capital Facilities Capacity Charges; Adopting Miscellaneous Charges and Fees relating to Industrial Charges, Source Control Permittees and Wastehaulers; and Repealing Ordinance No. OCSD-22". a. OPEN HEARING: The Vice Chair declared the hearing opened at 8:20 p.m. MOVED, SECONDED AND DULY CARRIED: Receive and file letter received from Kimberly Clark at the October 27, 2004 Board meeting. Gary Streed, Director of Finance, provided a detailed report on the revised calculation of rates for permit users and what the calculation was based on and responded to Directors' questions. Thomas L. Woodruff, General Counsel, reminded the Directors that approval of this proposed ordinance would require a 2/3 vote of the Board of Directors and the effective date would be January 1, 2005. Public comments were then received by Brian Keating of Kimberly Clark and Rick Hertel of House Foods. They expressed concern over the increased rates their businesses would need to pay due to the revised rate structure and the cost of doing business in Orange County. They requested the Directors to reconsider and re-evaluate the rate structure. CLOSE HEARING: The Vice Chair declared the hearing closed at 8:51 p.m. Vice Chair Ferryman stated for this item to pass, 2/3 approval of the Board of Directors would be required or 17 affirmative votes. Four members were not in attendance and he questioned if this item should be delayed until the following month. Directors expressed concern that new directors would be on the board the following month and would not have the background knowledge to be able to render a vote. 1. MOVED, SECONDED AND DULY CARRIED: Read Ordinance No. OCSD-24 by title only and waive reading of said entire ordinance. Directors expressed their reasons for supporting or opposition to the adoption of the ordinance. Minutes for Board Meeting Page 11 11/17/04 2. MOVED, SECONDED AND DULY CARRIED: Adopt Ordinance No. OCSD-24, An Ordinance of the Board of Directors of Orange County Sanitation District, Adopting Revised Table G re Permittee Charges for Use and Reaffirming All Other Charges. Directors Bankhead; Christy; Eckenrode; and Walker opposed. 16. Consideration to adopt Ordinance No. OCSD-25, An Ordinance of the Board of Directors of Orange County Sanitation District,Adopting Fats, Oils and Grease Control Regulations Applicable to Food Service Establishments: a. OPEN HEARING: The Vice Chair declared the hearing opened at 9:05 p.m. Bob Ghirelli, Director of Technical Services, reported that Articles VIII and IX are deleted from the ordinance per the request made by the City of Tustin. b. CLOSE HEARING: The Vice Chair declared the hearing closed at 9:06 p.m. d. 1. MOVED, SECONDED AND DULY CARRIED: Read Ordinance No. OCSD-25 by title only and waive reading of said entire ordinance. 2. MOVED, SECONDED AND DULY CARRIED: Adopt Ordinance No. OCSD-25, An Ordinance of the Board of Directors of Orange County Sanitation District, Adopting Fats, Oils and Grease Control Regulations Applicable to Food Service Establishments. 17. CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9: The Board convened in closed session at 9:06 p.m. pursuant to Government Code Sections 56956.9 and 54956.9(c). Confidential minutes of the Closed Session held by the Board of Directors have been prepared in accordance with California Government Code Section 54957.2 and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. No reportable actions were taken re Agenda Item Nos. 17(a)(1), (2) and (3). RECONVENE IN REGULAR SESSION: At 9:40 p.m., the Board reconvened in regular session. ADJOURNMENT: The Chair declared the meeting adjourned at 9:40 p.m. Penny M. le JI/f Secretary of the Boar Directors of Orange County Sanitation District Wdeptladmin\BSlMinutes1102704 minutes.doc Claims Paid From 10/01/04 to 10/15/04 Warrant No. Vendor Amount Description Accounts Payable-Warrants 65547 ADS Environmental Services, Inc. $ 87,151.39 Professional Services-J-73-2 65548 Black&Veatch Corporation 464,254.74 Engineering Services 131-76,131-102,132-85&5-58 65549 Brown&Caldwell 174,946.37 Professional Services 132-90 65550 Bush&Associates, Inc. 58,088.00 Professional Services 7-23,7-39,7-41 &11-22 65551 Certified Truck Bodies 26,937.50 Purchase&Installation of(1)Custom Service Truck Body 65552 Clemson University 29,153.08 Training Registration 65553 Electra-Bond, Inc. 28,715.37 Epoxy Coating of Truck Loading Auger&Misc. Parts&Accessories 65554 Hill Brothers 34,353.40 Chemicals-Odor&Corrosion Control-Newport Trunkline 65555 IPMC do Parsons 947,434.00 Professional Services-Integrated Program Management 65556 JPL Compressor Service, Inc. 82,422.19 Repair/Repl.Camshaft Lobes on#2 Engine, Pit. 1 Cen Gen;and Overhaul#4 Engine,Pit.2 65557 Kemiron Companies,Inc. 84,101.07 Ferric Chloride MO 9-27-85 65558 Lee&Ro,Inc. 144,039.84 Professional Services 5-51&5-52 65559 Ninyo&Moore Corporate Accounting 39,616.93 Professional Services-Materials Testing, Inspection&Geotechnical Engrg. 65560 Pioneer Americas, Inc. 231,255.55 Sodium Hypochlorite 65561 Palydyne, Inc. 75,452.54 Cationic Polymer MO 3-11-92 65562 S.S.Mechanical Corp. 27,534.80 Const.-Remove/Replace 280'of Seamless Carbon Steel Piping,Valves&Pipe Insulation 65563 Sancon Engineering, Inc. 32,450.00 Construction-Manhole Rehabilitation Program 65564 Southern California Edison 79,084.98 Power 65565 SPEC Services, Inc. 46,845.26 Engineering Services J-33-1,SP-94 65566 SPS Technologies 38,842.30 Reconciliation User Fee Refund Program 65567 Tran Consulting Engineers 52,083.60 Engineering Services 7-21 65568 Tule Ranch/Megan Farms 238,569.01 Residuals Removal MO 3-29-95 65569 U.S.Metro Group,Inc. 26,785.00 Janitorial&Floor Maintenance at Plants 1&2 65570 U.S. Peroxide,L.L.C. 143,464.88 Odor&Corrosion Control Treatment far Coll.Sys.;Hydrogen Peroxide&Ferrous Chloride 65571 Waste Markets Corp. 42,645.02 Maint.Agreement-Grit&Screenings Removal&Digester Bed Mat'I.Removal 65572 Yale/Chase Materials Handling, Inc. 130,513.46 (18)Taylor Dunn Electric Carts 65573 ARB, Inc. 43,9W.58 Construction 11-22 65574 Mike Priich&Sons 200,956.01 Construction 6-13-3&7-23-1 65575 Steve P Rados,Inc. 327,722.40 Construction 1-2-4 65576 Union Bank of California 36,413.60 Construction 1-2-4,Retention 65577 A-Cal(Assoc.Calibration,Inc.) 200.00 Calibration of Instrumentation for Bushard Sewer Project 65578 Able Scale Repair 660.00 Quarterly Scale Inspection&Certification 65579 Absolute Standards, Inc. 405.00 Lab Parts&Supplies 65580 Ace Ergonomics 42.56 Ergonomic Foot Rest 65581 Acroburr Inc.#2 209.88 Reconciliation User Fee Refund Program 65582 Agilent Technologies, Inc. 88.64 Lab Parts&Supplies 65583 Air Industries Corporation 1,937.25 Reconciliation User Fee Refund Program 65584 Air Industries 5,611.64 Reconciliation User Fee Refund Program 65585 Airgas Safety, Inc. 2,649.06 Safety Supplies 65586 Alfa-Laval,Inc. 2,997.76 Electrical Parts&Supplies 65587 Alhambra Foundry Co.,Ltd. 2,257.90 Manhole Frames&Covers 65588 Allied Pacific Metal Stamping 1,900.80 Reconciliation User Fee Refund Program 65589 Alloy Die casting 1,289.30 Reconciliation User Fee Refund Program 65590 Aluminum Forge 826.77 Reconciliation User Fee Refund Program 65591 Amcor-Sunclipse, Inc. 5,999.05 Reconciliation User Fee Refund Program 65592 American Payroll Association 165.00 Membership H:ldeptlrin12101CRANE%FAHR%FAHR2004%NOVEMBER%Oaima PaW Repait-101500da EXHIBIT A e..nlnn� Paaa 1 of 11 111AMM e Claims Paid From 10101/04 to 10115/04 Warrant No. Vendor Amount Description 65593 American Water Works Assoc.Mlater Quaity 555.00 Lab AdministratlonlQuality Assurance Division Meeting Registration 65594 Amerimax Building Products, Inc. 1,379.57 Reconciliation User Fee Refund Program 65595 Ametek Aerospace 559.44 Reconciliation User Fee Refund Program 65596 Amrican Air Filter, Inc. 1,481 A5 Filters 65597 Anaheim Extrusion Co., Inc. 788.00 Reconciliation User Fee Refund Program 65598 Anaheim General Hospital 5,373.58 Reconciliation User Fee Refund Program 65599 Aqua-Con 823.54 Reconciliation User Fee Refund Program 65600 Aquarium Doctor 105.44 Human Resources Aquarium Service 65601 Arrowhead Products 9.891.29 Reconciliation User Fee Refund Program 65602 Autodesk University/Enterprise Events 1,295.00 Training Registration 65603 Awards$Trophies Company 147.22 Plaques&Awards 65604 AMSA 450.00 Training Registration 65605 API Fund For Payroll Education, Inc. 78.00 Training Registration 65606 APW Enclosure Systems 4,978.93 Reconciliation User Fee Refund Program 65607 APW Enclosure Systems, L.L.C. 3,329.71 Reconciliation User Fee Refund Program 65608 ARO Services 270.33 Reconciliation User Fee Refund Program 65609 American Telephone&Telegraph Corp. 1,127.01 Telephone Conference Services 65610 American Telephone 8 Telegraph Corp. 93.21 Telephone Service 65611 AT&T Wireless Services 3,415.31 Wireless Phone Services 65612 AWSI 206.00 Department of Transportation Program Management&Testing 65613 Basic Chemical Solutions, L.L.0 10,668.32 Sodium Bisulfite 65614 Basic Electronics, Inc. 139.73 Reconciliation User Fee Refund Program 65615 Battery Specialties 364.24 Batteries 65616 Bazz Houston Co. 1,026.59 Reconciliation User Fee Refund Program 65617 Bearing Inspection, Inc. 1,141.24 Reconciliation User Fee Refund Program 65618 Beckman Coulter, Inc. 10,617,85 Reconciliation User Fee Refund Program 65619 Bermingham Controls 519.97 Valves 65620 BioMerieux Vitek, Inc. 4,060.95 Lab Parts&Supplies 65621 Bodycote Lindberg Corp. 324.54 Reconciliation User Fee Refund Program 65622 Boeing-Anaheim 16,933.10 Reconciliation User Fee Refund Program 65623 Boeing Company,The 6,926.03 Reconciliation User Fee Refund Program 65624 Boiler and Steam Parts.com 975.00 Valves 65625 Brasstech, Inc. 5,617.55 Reconciliation User Fee Refund Program 65626 Brea Community Hospital 7,848.97 Reconciliation User Fee Refund Program 65627 Bridgemark Corporation 16.40 Reconciliation User Fee Refund Program 65628 Bristol Industries 2,591.39 Reconciliation User Fee Refund Program 65629 Burlington Engineering, Inc. 1,267.76 Reconciliation User Fee Refund Program 65630 BAF Industries 1,781.19 Reconciliation User Fee Refund Program 65631 BI Technologies 3,319.04 Reconciliation User Fee Refund Program 65632 Cal-Glass, Inc. 84.32 Lab Equipment Repairs 65633 California Auto Collision 564.56 Repairs to Vehicle 408 65634 California Relocation Services, Inc. 187.50 Office Files Moving/Relocation Services 65635 CWEA-Membership 97.00 Membership 65636 Cambridge Isotope Labs 3,491.10 Lab Parts&Supplies 65637 Cambro Manufacturing 3,354.03 Reconciliation User Fee Refund Program 65638 Cannon Equipment West 763.72 Reconciliation User Fee Refund Program 65639 Caran Precision Engineering 2,070.50 Reconciliation User Fee Refund Program H:%deptlfln%2101CRANEIFAHRIFAHR2004WOVEMBER1Ciaims Paid Report-101504.)ds EXHIBIT A ewninn. Pane 2 of 11 11 1211 M Claims Paid From 10/01104 to 10115/04 Warrant No. Vendor Amount Description 65640 Casual Gourmet 156.24 Meeting Expense-132-79 65641 Catalina Cylinders 1,152.36 Reconciliation User Fee Refund Program 65642 Center for Creative Growth 2.500.00 Professional Services-O&M Management Coaching 65643 Central Powder Coating 1.040.04 Reconciliation User Fee Refund Program 85644 Chapman Hospital 2,857.58 Reconciliation User Fee Refund Program 85845 Circuit Tech, Inc. 17.16 Reconciliation User Fee Refund Program 65646 Cole-Partner Instrument Co. 277.32 Lab Parts&Supplies 65647 Comm Vault Systems, Inc. 8,373.37 Annual Support&Maintenance for NDMP&Galaxy Software 65648 Component Services International,L.L.C. 514.90 Toshiba Circuit Board Repairs 65649 Consolidated Elect. Distributors, Inc. 1.710.40 Electrical Parts&Supplies 65650 Consumers Pipe&Supply Co. 277.18 Plumbing Supplies 65651 Cooper Cameron Corporation 1,670.61 Engine Supplies 65652 Corporate Express 3,175.14 Office Supplies 65653 Cortech Engineering 1,554.38 Pump Supplies 65654 County Wholesale Electric Co. 156.88 Electrical Parts&Supplies 65655 Criterion Machine Works 1.353.65 Reconciliation User Fee Refund Program 65656 Crockett Container Corp. 5,373.01 Reconciliation User Fee Refund Program 65657 Custom Enamelers, Inc. 454.66 Reconciliation User Fee Refund Program 65658 CDW Govemment, Inc. 297.41 Software Support&Maintenance 65659 CEM Corporation 241.00 Lab Parts&Supplies 65660 CEPA Company 1,220.00 Lab Equipment Maintenance&Certification-Fume Hoods 65661 CH2MHill 7,267.23 Engineering Services J-40-7 65662 CMAA 225.00 Training Registration 65683 CSI Computational Systems 4,467.00 Training Registration 65664 Dapper Tire Co. 357.42 Truck Tires 65665 Data Aire, Inc. 1,764.16 Reconciliation User Fee Refund Program 65666 Data Solder,Inc. 61.74 Reconciliation User Fee Refund Program 65667 David's Tree Service 275.00 Tree Maint.Service 65668 Decor Metal Finishing, Inc. 812.68 Reconciliation User Fee Refund Program 65669 Delphi Automotive Systems,L.L.C. 10,925.80 Reconciliation User Fee Refund Program 65670 Donn Cosmetic Labs, Inc. 408.20 Reconciliation User Fee Refund Program 65671 Detection Instruments Corporation 435.21 Instrument Repairs&Calibration-Oda Logs 65672 E.I.Du Pont De Nemours and Company 18.686.00 Painting Maint.Services MO 4-22-98 65673 Ducommun Aerestructures 3,122.60 Reconciliation User Fee Refund Program 65674 Dunn-Edwards Corporation 46.98 Paint Supplies 65675 DGA Consultants, Inc. 11.503.00 Professional Services-CCTV Data Evaluation&Support 65676 Eaton Corporation/MSC Products 1,125.99 Reconciliation User Fee Refund Program 65677 Edinger Medical Group, Inc. 615.00 Medical Screenings 65678 Electra Metal Finishing Corp. 95.06 Reconciliation User Fee Refund Program 65679 Employers Group 312.28 Training Registration 65680 Enchanter, Inc. 4,500.00 Ocean Monitoring&Outfall Inspection&Maintenance 65681 Engravers Ink Company 38.72 Reconciliation User Fee Refund Program 65682 Essex Electric, Inc. 2.377.42 Reconciliation User Fee Refund Program 65683 Excel Door&Gate Company, Inc. 850.05 Installation of Receiver and Provide 2 Remote Transmitters for Ellis Gate Entrance 65684 Exquisite Design 43.60 Reconciliation User Fee Refund Program 65685 ENS Resources, Inc. 10,002.41 Professional Services-Legislative Advocate 65686 ESRI, Inc. 1,570.00 Training Registration H:Wep11fln%210%CRANE%FAHR%FAHR2004%NOVEMBER1Claims Paid Report-101504.xta EXHIBIT A l.ninitr Pace 3 of 11 illAnMd Claims Paid From 10101104 to 10/15/04 Warrant No. Vendor Amount Description 65687 Fabrication Concepts Corporation 2,499.18 Reconciliation User Fee Refund Program 65688 FedEx Corporation 758.10 Freight Services 65689 First American Real Estate Solutions 2,600.00 On-Line Orange County Properly Information 85690 Five Star Metals, Inc. 358.40 Mechanical Parts&Supplies 65691 Fcodcraft Coffee&Refreshment Services 735.93 Meeting Supplies 65692 Fountain Valley Rancho Hand Wash 841.70 Truck Wash Tickets or Gasoline 65693 Franklin Covey 163.78 Office Supplies 65694 Pryor Seminars/Career Track 199.00 Training Registration 65695 Frederick Pump&Engineering 290.18 Pump Parts&Supplies 65698 Fry's Electronics 14.00 Computer Supplies 65697 Fullerton Plating 1,256.28 Reconciliation User Fee Refund Program 65698 G.F.O.A. 285.00 Training Registration 65699 Ganahl Lumber Company 131.99 Repairs&Maintenance Materials 65700 General Container Corp. 471.44 Reconciliation User Fee Refund Program 65701 George Yardley Co. 1,392.13 Solenoid Valve 65702 Georgia Pacific 5,697.92 Reconciliation User Fee Refund Program 65703 Gilmour Group c/o Lippincott Co. 1,130.84 Hoses 65704 Goldenwest Window Service 470.00 Window Cleaning Service-Spec.#890015 65705 Gomtech Electronics 208.33 Reconciliation User Fee Refund Program 65706 Gorilla's Polishing and Plating Corp. 132.20 Reconciliation User Fee Refund Program 65707 Government Finance Officers Association 50.00 Subscription 65708 Grainger, Inc. 2.286.65 Mechanical Parts,Supplies&Tools 65709 Graybar Electric Company 4,978.75 Electrical Parts,Supplies&Repairs 65710 Great Western Sanitary Supplies 234.16 Lab&Janitorial Supplies 65711 H Koch&Sons 3,565.60 Reconciliation User Fee Refund Program 65712 Hach clo Ponton Industries 142.44 Lab Parts&Supplies 65713 Hamilton Materials 1.227.53 Reconciliation User Fee Refund Program 65714 Harbor Truck Bodies, Inc. 700.00 Reconciliation User Fee Refund Program 65715 Harold Primrose Ice 55.50 Ice For Samples 65716 The Hartwell Corporation 412.25 Reconciliation User Fee Refund Program 65717 Health Dimensions 800.00 Employee Health Fair 65718 Health Science Associates 3,706.80 Professional Services-Asbestos Study 65719 Hightower Plating&Manufacturing Co. 748.39 Reconciliation User Fee Refund Program 65720 Home Depot 349.36 Misc.Repair&Maintenance Material 65721 Hopkins Technical Products 1,082.13 Pump Supplies 65722 Horizon Technology 1,149.11 Lab Parts&Supplies 65723 Hub Auto Supply 281.16 Vehicle Parts&Supplies 65724 City of Huntington Beach 34.85 Water Use 65725 Hyatt Die Casting&Engineering Corp. 1,485.29 Reconciliation User Fee Refund Program 65726 HI Standard Automotive 195.44 Automotive Parts&Supplies 65727 Independent Forge Co. 90.23 Reconciliation User Fee Refund Program 65728 Industrial Distribution Group 751.23 Mechanical&Paint Supplies and Lock 65729 Industrial Threaded Products, Inc. 212.25 Mechanical Parts&Supplies 65730 Interstate Batteries of Cal Coast 860.06 Batteries for Vehicles&Carts 65731 intratek Computer, Inc. 2,340.00 Network&Server Maintenance 65732 Invensys Systems, Inc. 1,386.43 Instrument Supplies 65733 Iron Mountain Off-Site Data Protection 272.50 Offsfte Back-Up Tape Storage for NT Server H:%dept1frn12101CRANE%FAHRTAHR20041NOVEMBER►,Wrm Paid Report-101504.)da EXHIBIT A A.V31aM Pace 4 of 11 1lranrtAe Claims Paid From 10101104 to 10/15/04 Warrant No. Vendor Amount Description 65734 Irvine Sensors Corp. 7,304.40 Reconciliation User Fee Refund Program 65735 IPC Cal Flex, Inc. 199.13 Reconciliation User Fee Refund Program 65736 J&B Auto Parts 29.95 Auto Parts&Supplies 65737 James"Tex"Climie 2,868.00 Professional Services-Nedssa Construction Progress&Sea Trials 65738 Jarirson Engineering Contractors, Inc. 3,500.00 Installation of Flow Meter at Yorba Linda Pump Sta. 65739 Jay's Catering 2,038.13 Meeting Expenses 65740 Jellco Container, Inc. 1,772.58 Reconciliation User Fee Refund Program 65741 Jobs Available,Inc. 138.00 Notices&Ads 65742 Johnson Controls Inc. 16,871.93 Reconciliation User Fee Refund Program 65743 Johnstone Supply 17.51 Pump Parts&Supplies 65744 Karcher Insulation,Inc. 4,352.52 Repairs&Maint.Service-Repair Boiler Insulation on No.2 Boiler 65745 Kenlen Specialities, Inc. 398.00 Reconciliation User Fee Refund Program 65746 Kirkhill Rubber 8,281.22 Reconciliation User Fee Refund Program 65747 Lam Lighting,Inc. 796.69 Reconciliation User Fee Refund Program 65748 Larry Walker Associates 9,316.25 Professional Services-NPDES Permit Reissue&Water Quality Regulatory Assistance 65749 Leach Corp. 350.80 Reconciliation User Fee Refund Program 65750 Liebert Cassidy Whitmore 232.00 Professional Services-Human Resource Policies&Procedures 65751 Lock N Stitch 5,538.45 Compressor Repair&Maint.Services 65752 Lord&Sons, Inc. 333.38 Mechanical Parts&Supplies 65753 Luccr s Gourmet Foods,Inc. 45.45 Meeting Expense 65754 LINJER 4,987.94 Professional Service-DART MO 9-22-99 65755 Magnetic Metals Corporation 2,457.04 Reconciliation User Fee Refund Program 65756 The Mathworks,Inc. 77.91 Software Maintenance-Matlab 65757 Mc Junkin Corp. 184.79 Valves 65758 Mead Westvaco Packaging 4,471.45 Reconciliation User Fee Refund Program 65759 Medlin Controls Co. 851.51 Instrument Supplies 65760 Midway Mfg&Machining Co. 12.926.95 Mechanical Parts&Supplies 65761 Milltronlcs do RMB Engineering 490.26 Electrical Parts&Supplies 65762 Mission Uniform Service 3,005.86 Uniform Rentals 65763 Motion Industries,Inc.CA 55 1,629.04 Motor 65764 MARMAC Field Services,Inc. 2,316.95 Professional Services Pl-92 65765 National Filter Media Corporation 4,290.00 Filter Press Belts 65766 Neal Supply Co. 2.62 Plumbing Supplies 65767 The Norco Companies 179.68 Mail Delivery Service 65768 Nu-Tec Powder Coating 82.72 Reconciliation User Fee Refund Program 65769 NRG Thermal Services,L.L.C. 24,787.00 Construction J-79 65770 Office Depot Business Services Div. 6,337.24 Office Supplies 65771 Oracle Corporation 2,662.79 Software Maintenance&Support 65772 The Orange County Register 9,813.29 Reconciliation User Fee Refund Program 65773 Orange Courier 927.08 Courier Services 65774 Orange Fluid System Technologies, Inc. 1,944.28 Plumbing Parts&Supplies 65775 Osterbauer Compressor 62.58 Compressor Parts 65776 Oxygen Service Company 2,018.33 Specialty Gases 65777 OCB Reprographics 11,009.03 Printing Service-MO 1126/00 65778 P.L.Hawn Company, Inc. 60.77 Electrical Supplies 65779 Pacific Mechanical Supply 72.06 Plumbing Supplies 65780 Pacific Parts&Controls 928.81 Sealer H:rdept1ftn1210►CRANEIFAHRIFAHR2004%NOVEMBERICLafma Paid Report-101504.)da EXHIBIT A FnMAA� Paae 5 of 11 ��rannnd Claims Paid From 10/01/04 to 10/16/04 Warrant No. Vendor Amount Description 65781 Pacific Utility Products 169.10 Reconciliation User Fee Refund Program 65782 Pacifica Aerospace Corp. 2,639.30 Reconciliation User Fee Refund Program 65783 Parker Supply Company 2,939.02 Mechanical Parts&Supplies 65784 Parsons Water&Infrastructure, Inc. 659.16 Professional Services J-42 65785 PenValve 19.26 Plumbing Parts&Supplies 65786 Performance Machine, Inc. 2,578.31 Reconciliation User Fee Refund Program 65787 Pico Farad, Inc. 887.39 Reconciliation User Fee Refund Program 65788 Pilkington Aerospace 8,029.81 Reconciliation User Fee Refund Program 65789 Pixelpushers, Inc. 5,020.00 Professional Services-Web-Based,On-Line Job Application&Tracking System 65790 Pleion Corp.#2 1,860.40 Reconciliation User Fee Refund Program 65791 Port Supply 1,413.10 Instrument&Electronic Port Supplies 65792 Poster Compliance Center 346.01 State Compliance Posters 65793 Praxair Distribution, Inc. 30.78 Demurrage 65794 Precious Metals Plating Co. 235.80 Reconciliation User Fee Refund Program 65795 Precision Painting 2,170.00 Reconciliation User Fee Refund Program 65796 Precision Pawdercoating, Inc. 78.43 Reconciliation User Fee Refund Program 65797 Precon, Inc. 374.49 Reconciliation User Fee Refund Program 65798 Private Label Laboratories 1,050.34 Reconciliation User Fee Refund Program 65799 Progressive Marketing 2,563.96 Reconciliation User Fee Refund Program 65800 Propipe 24,852.65 CCTV Sewerline Inspection-Tustin 65801 Prudential Overall Supply 1.280.19 Unifomis 65802 Pump Engineering 1,551.60 Pump Supplies 65803 PS Tek, L.L.C. 441.70 Mechanical Parts&Supplies 65804 Quality Aluminum Forge 593.34 Reconciliation User Fee Refund Program 65805 Quality Aluminum Forge, Inc. 447.22 Reconciliation User Fee Refund Program 65806 Railmakers, Inc. 134.49 Reconciliation User Fee Refund Program 85807 Raney Industries 4,360.00 Contract Service-Belt Press Equipment Modification 65808 Reid Metal Finishing 573.19 Reconciliation User Fee Refund Program 65809 Restek Corp 116.42 Lab Parts&Supplies 65810 Ricoh Electronics#2 7,409.98 Reconciliation User Fee Refund Program 65811 Rigiflex Technology, Inc. 73.75 Reconciliation User Fee Refund Program 65812 Rock Industries 6,59 Reconciliation User Fee Refund Program 65813 RBC Transport Dynamics 1,454.54 Reconciliation User Fee Refund Program 65814 Santana Services 158.02 Reconciliation User Fee Refund Program 65815 Schwing America, Inc. 7.02 Pump Supplies 65816 Secretary of State 20.00 Filing Fee-OCSD Financing Corp.Statement of Information/Domestic Non-Profit Corp. 65817 Select Circuits 242.68 Reconciliation User Fee Refund Program 65818 Semicoa 469.02 Reconciliation User Fee Refund Program 65819 Shamrock Supply Co., Inc. 2,260.79 Concrete 65820 Shepard Brothers, Inc. 3,754.65 Reconciliation User Fee Refund Program 65821 Sigma-Aldrich, Inc. 598.81 Lab Parts&Supplies 65822 James W.Silva 521.46 Meeting/Training Expense Reimbursement 65823 SkillPath Seminars 199.00 Training Registration 65824 Snell Infrared 1.450.00 Training Registration 65825 South Bay Chrome Sales 309.69 Reconciliation User Fee Refund Program 85826 Spex Certiprep, Inc. 807.96 Lab Parts&Supplies 65827 Star Powder Coating 15.43 Reconciliation User Fee Refund Program H:Weptlfrn%2101CRANE%FAHRIFAHR2004%NOVEMBERtiGafrm Paid Report-101504.)ds EXHIBIT A a,.nlnn,. Paoe 8 of 11 111anMA �1 7 Claims Paid From 10/01/04 to 10116104 Warrant No. Vendor Amount Description 65828 Summit Steel 1,137.48 Metal 65829 Sunset Industrial Parts 1,930.65 Mechanical Supplies 65830 SBC 61.41 Telephone Services 65831 SDT North America, Ltd. 186.35 Acoustic Grease Gun Adapter 65832 SPX Valves&Control 478.48 Valves 65833 Taormina Industries, Inc. 4,772.29 Reconciliation User Fee Refund Program 65834 Taormina Industries, Inc.#4 114.85 Reconciliation User Fee Refund Program 65835 Taylor-Dunn Manufacturing 6,248.85 Reconciliation User Fee Refund Program 65836 Teletrac,Inc. 245.00 Monthly Air-Time Service Fee&Software/Hardware Maint.for Vehicle Tracking Sys. 65837 Textron Aerospace 9,042.90 Reconciliation User Fee Refund Program 65838 The Walking Man, Inc. 3,260.00 Public Notice Printing&Mailing Services 7-39,7-41&7-38 65839 Thompson Industrial Supply, Inc. 1,680.27 Mechanical Supplies 65840 Time Warner Communication 40.47 Cable Services 65841 Daily Pilot 100.00 Notices&Ads 65842 Tony's Lock&Safe Service&Sales 880.50 Locks&Keys 65843 Toyota Racing Development#2 2,227.26 Reconciliation User Fee Refund Program 65844 Traffic Control Service, Inc. 283.38 Traffic Safety Equipment Rental 65845 Transline Technology, Inc. 240.00 Reconciliation User Fee Refund Program 65846 Tropical Plaza Nursery,Inc. 7,935.79 Contract Groundskeeping MO 5-11-94 65847 Truck&Auto Supply,Inc. 288.24 Automotive Supplies 65848 TMV Systems Engineering, Inc. 812.50 Software Services 65849 US Filter Corp. 14,621.97 Service Agreement-Lab Purification System 65850 U.S.Geological Survey 4.192.45 Professional Services-Huntington Beach Investigation 65851 U.W.M.C. Hospital Corp.-Anaheim 5,214.84 Reconciliation User Fee Refund Program 65852 U-Line 607.17 Hand Truck&Misc.Supplies 65853 Ultra Scientific 542.96 Lab Parts&Supplies 65854 Underground Service Alert of So.Calif. 1,416.80 Membership 65855 The Unisource Corporation 187.39 Office Supplies 65856 United Circuit Technology 451.35 Reconciliation User Fee Refund Program 65857 Urban Altematives 5,520.00 Prof.Serv.-Comm. Rels.Consulting Support/Coaching Re Ellis Ave. Pump Sta. 65858 Varian,Inc. 204.12 Lab Parts&Supplies 65859 Veeco Electra Fab, Inc.#2 43.12 Reconciliation User Fee Refund Program 65860 Vendor,Inc. 11,448.40 Reconciliation User Fee Refund Program 65861 Verizon California 1,354.49 Telephone Services 65862 Verne's Plumbing 2,895.00 Service Contract-Testing&Carl. Backflow Devices at Pits. 1&2&Pump Sta. 65863 Vista Paint Corporation 2,573.12 Reconciliation User Fee Refund Program 65864 VWR Scientific Products Corporation 6,049.12 Lab Parts&Supplies 65865 The Wackenhut Corporation 12,426.82 Security Guards 65866 Weather&Wind Instrument Co. 1,026.38 Wind Sock 65887 West American Rubber Company 10,258.60 Reconciliation User Fee Refund Program 65868 West-Lite Supply Company, Inc. 1,108.23 Electrical Supplies 65869 Western State Controls 731.58 Electrical Paris&Supplies 65870 Weyerhauser Company 20,385.84 Reconciliation User Fee Refund Program 85871 WEF 1,188.00 Membership-Water Environment Federation 65872 Xerox Corporation 119.18 Fax&Copier Leases&Maintenance 65873 XZX Electronics, Inc. 220.00 Reconciliation User Fee Refund Program 65874 York International 331.11 Electrical Supplies H:ldeptifin12101CRANE%FAHR%FAHR20041NOVEMBER%Cialma PaW Report-101504.x1a EXHIBIT A R..n+ntl� Pane 7 of 11 4110nnna Claims Paid From 10/01104 to 10/15/04 Warrant No. Vendor Amount Description 65875 YCA 1,200.00 Training Registration 65876 Zee Medical 225.07 First Aid Supplies 65877 Layne T. BamIdi 261.70 Meeting/Training Expense Reimbursement 65878 Carol T. Beekman 1,048.00 Meeting/Training Expense Reimbursement 65879 Thomas M. Blanda 368.92 Meeting/Training Expense Reimbursement 65880 Rebecca A. Brooks 429.00 Meeting/Training Expense Reimbursement 65881 Mark A. Brown 2,034.94 Meeting/Training Expense Reimbursement 65882 Pongsakd€ Cady 265.75 Meeting/Training Expense Reimbursement 65883 George A.Charette 472.01 Meeting/Training Expense Reimbursement 65884 James E.Colston 1,130.54 Meet€ng/Training Expense Reimbursement 65885 Steven R. DeWi€de 684.84 Meeting/Training Expense Reimbursement 65866 Peter M.Hass 613.16 Meeting/Training Expense Reimbursement 65887 Jin H.Kim 150.00 Meeting/Training Expense Reimbursement 65888 Larry E. Lazorek 434.60 Meeting/Train€ng Expense Reimbursement 65889 William J. Lloyd 412.23 Meeting/Training Expense Reimbursement 65890 David A. Ludwin 1,848.64 Meet€ng/Training Expense Reimbursement 65891 Laura Maravllla 19.03 Meeting/Training Expense Reimbursement 65892 Robert D. Michaels 796.38 Meeting/Training Expense Reimbursement 65893 Fred J.O'Brien 805.34 Meeting/Treining Expense Reimbursement 65894 Gary A. Pons 1,417.48 Meeting/Training Expense Reimbursement 65895 Bushra R. Pope 17.00 Meeting/Tralning Expense Reimbursement 65898 Jeremy J.Saum 160.88 Meeting/Training Expense Reimbursement 65697 Richard E.Schlegel,Jr. 1,295.00 Meeting/Training Expense Reimbursement 65898 John W.Swindler 468.55 Meetingrrmining Expense Reimbursement 65899 Robert C.Thompson 880.33 Meeting/Training Expense Reimbursement 65900 William F.Webster,Jr. 827.06 Meeting/Training Expense Reimbursement 65901 Paula A.Zeller 384.39 Meeting/Training Expense Reimbursement 65902 APT US&C 200.00 Professional Services -Investment Policy Certification Program 65903 City of Brea 92.50 Meeting Expenses-Community Outreach Meeting Re Carbon Canyon 65904 County of Orange-Auditor Controller 180.00 Administrative Processing Fee for Supplemental Sewer Fee Adjustmenis/Cancellations 65905 Orange County Sanitation District 1,649.26 Petty Cash Reimb. 65OW Brian K.Reed 195.03 Meeting/Training Expense Reimbursement 65907 West Coast Life 2,9W.00 Employee Life Insurance Premium 65908 American Express 25,397.95 Purchasing Card Program,Misc.Supplies&Services 65909 Nor-Cal Beverage Company, Inc. 144,764.63 Reconciliation User Fee Refund Program 65910 Occidental Energy Marketing, Inc. 174,073.68 Natural Gas-Cen Gen 65911 Stremricks Heritage Foods 97,011.75 Reconciliation User Fee Refund Program 65912 A&G Elecimpolish 1,588.25 Reconciliation User Fee Refund Program 85913 Accurate Circuit Engineering 349.26 Reconciliation User Fee Refund Program 65914 Accurate Metal Fabricators, inc. 487.12 Reconciliation User Fee Refund Program 65915 Airgas Safety 5,631.83 Safety Supplies 65916 Alta-Robbins, Inc. 399.17 Instrument Supplies 65917 Aluminum Precision 513.80 Reconciliation User Fee Refund Program 65918 Artisan Nameplate and Awards Corp. 1,408.64 Reconciliation User Fee Refund Program 65919 All 900.00 Training Registration 65920 American Telephone&Telegraph Corp. 28.08 Telephone Service 65921 Basin Marine,Inc. 7.76 Reconciliation User Fee Refund Program H:ldepttfin12101CRANE%FAHR%FAHR20041NOVEMBER1Gaifm Paid Repod-101504.x1e EXHIBIT A A..MInn.. pace 6 of 11 111AMVIA Claims Paid From 10101104 to 10/15/04 Warrant No. Vendor Amount Description 65922 The Boeing Company 22,347.03 Reconciliation User Fee Refund Program 65923 Brand Scaffold Rental&Erection, Inc. 2,050.00 Scaffolding Access at Scrubbers 9&10 65924 Callfomia Custom Shapes,Inc. 885.25 Reconciliation User Fee Refund Program 65925 Cameron Welding Supply 177.63 Welding Supplies 65926 Circuit Access, Inc. 317.54 Reconciliation User Fee Refund Program 65927 Classic Plating, Inc. 588.05 Reconciliation User Fee Refund Program 65928 Clough's Rhubarb 12,573.21 Reconciliation User Fee Refund Program 65929 Court Order 150.00 Wage Garnishment 65930 Columbia West Anaheim Medical Center 1,783.83 Reconciliation User Fee Refund Program 65931 Compressor Components Of California 3,792.80 Repair&Maintenance Service-Rebuild 32 Fuel Check Valves at Pit.2 Warehouse 65932 Consumers Pipe&Supply Co. 167.25 Plumbing Supplies 65933 Cooper Cameron Corporation 662.37 Freight 65934 County of Orange 182.14 Wage Garnishment 6505 Court Trustee 69.12 Wage Garnishment 65936 Crest Coatings#2 161.47 Reconciliation User Fee Refund Program 65937 CCDA Waters,L.L.C. 7,602.39 Reconciliation User Fee Refund Program 65938 Dell Computer 21,034.03 (5)Computers,(1)Server&Hardware 65939 Department of Child Support Services 188.50 Wage Garnishment 65940 Dhanna Consulting 15,000.00 Professional Services-Strategic Planning&EMT Development 65941 Diehl,Evans&Co., L.L.P. 700.00 Training Registration 65942 Embee Inc.91 10.27 Reconciliation User Fee Refund Program 65943 Embee Inc.#3 69.84 Reconciliation User Fee Refund Program 659" Employee Benefits Specialists, Inc. 9,792.38 Reimbursed Prepaid Employee Medical&Dependent Care 65945 Court Order 445.00 Wage Garnishment 65M Fisher Scientific Company, L.L.C. 2,017.74 Lab Parts&Supplies 65947 Franchise Tax Board 100.00 Wage Garnishment 65M Fry's Electronics 355.54 Computer Supplies 65949 Garg-Oil Production,L.L.C. 475.46 Reconciliation User Fee Refund Program 65950 Garratt-Callahan Company 1,926.57 Chemicals 65951 Gemini Industries 7,597.48 Reconciliation User Fee Refund Program 65952 General Ceramics,L.L.C. 1.819.01 Reconciliation User Fee Refund Program 65953 Global Environmental Network, Inc. 608.00 On-Site Training-Traffic Control Safety Awareness 65954 Goglanian Bakeries 5,100.03 Reconciliation User Fee Refund Program 65955 Gunther Athletic Service 89.48 Reconciliation User Fee Refund Program 65956 Harrington Ind. Plastics 183.35 Mechanical Parts&Supplies 65957 Harry's Dye&Wash,Inc. 6,174.78 Reconciliation User Fee Refund Program 65958 Harte-Hanks Shoppers 1,111.75 Reconciliation User Fee Refund Program 65959 Herrman Miller Workplace Resource 3,962.07 Office Furniture 65960 Ideal Uniform Rental Service 2,029.21 Reconciliation User Fee Refund Program 65961 Internal Revenue Service 300.00 Wage Garnishment 65962 Internal Revenue Service 200.00 Wage Garnishment 65963 International Food Solutions, Inc. 5,465.02 Reconciliation User Fee Refund Program 65964 Intl.Union of Oper.Eng.AFL-CIO Local 501 3,929.98 Dues Deduction 65965 ICN Pharmaceuticals 779.76 Reconciliation User Fee Refund Program 65966 J.R.O.Operations Trust/H.B.Oil 207.57 Reconciliation User Fee Refund Program 65967 Johnstone Supply 39.70 Pump Supplies 65968 Kua Textiles,Inc. 492.63 Reconciliation User Fee Refund Program H:Idept1fm12101CRANEIFAHRIFAHR2004V40VEMBER%Clalma Paid RepoA-101504.)ds EXHIBIT A nnnlnn� Paoa 9 of 11 11JA11AAA Claims Paid From 10101/04 to 10115104 Warrant No. Vendor Amount Description 659M La Palma Intercommunity Hospital 8,019.62 Reconciliation User Fee Refund Program 65970 Linco Industries, Inc. 353.43 Reconciliation User Fee Refund Program 65971 Lorman Education Services 319.00 Training Registration 65972 Mac&Associates,An Industrial Dist.Co 426.45 Pump Supplies 65973 McMaster-Carr Supply Co. 1,320.43 Mechanical Parts&Supplies 65974 Micrometals, Inc.#2 771.57 Reconciliation User Fee Refund Program 65975 Milltronics clo RMB Engineering 506.33 Mechanical Parts&Supplies 65976 Court Order 225.00 Wage Garnishment 65977 National Bond&Trust 2,485.36 U.S.Savings Bonds Payroll Deductions 65978 National Plant Services, Inc. 4,350.00 Vacuum Truck Services 65979 New Hermes,Inc. 17.53 Freight 65980 Nuevo Energy 1,972.35 Reconciliation User Fee Refund Program M81 Orange Fluid System Technologies,Inc. 110.15 Plumbing Parts&Supplies 65982 OCEA 598.61 Dues Deduction 65983 Partners Consulting Services 22,020.00 FIS On-Site Support-One World XE Migration Project 65984 Court Order 296.00 Wage Garnishment 65985 Paulus Engineering, Inc. 19,570.00 Construction-Sewerline Road Repairs in Tustin 659W Payton Technology Corp 7.109.83 Reconciliation User Fee Refund Program 65987 Peace Officers Council of CA 1,593.00 Dues Deduction 65988 Pictometry International Corp. 20,000.00 Software License&Training-Image Library 65989 Precon Products 586.17 Manholes 65990 Pumping Solutions, Inc. 826.55 Pump 65991 Red Wing Shoes 174.12 Safety Shoes 65992 Court Osier 721.50 Wage Garnishment 65993 So.Cal.Gas Company 1,193.54 Natural Gas 65994 Southern California Material Handling 22,616.73 (1)Caterpillar Forklift 65995 Speedy Circuits, Facility#2 1,772.83 Reconciliation User Fee Refund Program 65996 State Board of Equalization 350.00 Annexation Fee 65997 Summit Steel 3,038.05 Metal 65998 SETAC 325.00 Lab Administration/Quality Assurance Division Meeting Registration 65999 Thomas V.Gerlinger 500.00 Lab Analyses 66000 Toyota Racing Development 302.85 Reconciliation User Fee Refund Program 66001 Troy Systems,Inc. 865.91 Toner 66002 Truck&Auto Supply,Inc. 592.33 Automotive Supplies 66CO3 U S Bank 3,957.00 Administrative Fees Re Series 2000 Certificates of Participation 66004 Ultra Pure Metal Finishing, Inc. 246.64 Reconciliation User Fee Refund Program 66005 United Way 245.00 Employee Contributions 66006 Universal Alloy Corp. 496.53 Reconciliation User Fee Refund Program 66007 UOP, L.L.C. 208.42 Reconciliation User Fee Refund Program 66008 UWMC Hospital Corp. 21,927.73 Reconciliation User Fee Refund Program 66009 Valle Circuits, Inc. 1,898.92 Reconciliation User Fee Refund Program 66010 Verizon California 83.23 Telephone Services 66011 Verteq Process Systems 721.37 Reconciliation User Fee Refund Program 66012 VWR Scientific Products Corporation 218.18 Lab Parts&Supplies 66013 Wally Machinery and Tool Supply, Inc. 189.54 Mechanical Parts&Supplies 66014 Waxie Sanitary Supply 3,232.50 Mechanical Parts&Supplies 66015 Welding Training Solutions,Inc. 500.00 Training Registration H:Wept1ftnl2lMCRANE%FAHR%FAHR2004%NOVEMBER%CWma Paid Report-101504.)ds EXHIBIT A AW*Inn� Paw 10 of 11 I+Ianw Claims Paid From 10101104 to 10/15/04 Warrant No. Vendor Amount Description 66016 West-Life Supply Company, Inc. 7.98 Electrical Supplies 66017 Winonics 4,254.31 Reconciliation User Fee Refund Program 66018 Court Order 597.50 Wage Garnishment 66019 Todd A. May 131.89 Safety Supplies 66020 California Municipal Treasurers Assoc. 50.00 Accounting Meeting Registration 66021 Local Agency Formation Commission 1,150.00 Annexation Fees 66022 Nicholas Natty 660.00 Attorney Services Re I.N.S Work Visa Petition Process 66023 Orange County Sanitation District 14,944.44 Workers Comp.Re€mb. 66024 State Board of Equalization 600.00 Annexation Fee 66025 State Board of Equalization 300.00 Annexation Fee 66026 Carol T. Beekman 718.34 MeetinglTraining Expense Reimbursement Total Accounts Payable-Warrants $ 5,451,903.16 Payroll Disbursements 35340-35601 Employee Paychecks $ 60,908.13 Corrections&Retirement&Retro Payments* 35602-35714 Employee Paychecks 156,805.06 Biweekly Payroll 10/13/04 35715-35716 Employee Paychecks 448.70 Reissued Check&Retro Payment 103512-104053 Direct Deposit Statements 1,015,836.45 Biweekly Payroll 10/13/04 Total Payroll Disbursements $ 1,233,996.34 *Checks 35340-35343 ware issued In September but not reported. Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 819,391.76 Biweekly Payroll 10/13/04 JP Morgan Chase Bank 45,781.91 September Interest Payment on Series 190 Certificates of Participation JP Morgan Chase Bank 113.638.41 Societe Generale September Swap Payment on 1993 Series Certificates of Participation Total Wire Transfer Payments $ 978,812.08 Total Claims Paid 10101/04-10/15/04 $ 7,664,711.58 H-.Wephfin12101CRAHE%FAHRIFAHR20041NOVEMBER1Ciaims Paid Report-101504.x1s EXHIBIT A finnlntsr Pace 11 of 11 ivw7nna -.r M Claims Paid From 10116/04 to 10/31104 Warrant No. Vendor Amount Description Accounts Payable-Warrants 66027 Air Products&Chemicals, Inc. $ 27,267.39 O&M Agreement Oxy Gen Sys MO 8-8-89 66028 Basic Chemical Solutions, L.L.C. 49,632.64 Sodium Bisulfite&Sodium Hydroxide 66029 Black&Veatch Corporation 91,749.59 Engineering Services J-77&5-58 66030 Blue Cross of Califomia 336,945.11 Medical Insurance Premium 66031 Boyle Engineering Corporation 44,120.41 Professional Services 1-2-4 66032 Brown&Caldwell 243,711.12 Professional Services 132-90 66033 CH2MHill 40,232.00 Engineering Services-Urban Runoff Study 66034 Delta Dental 55,298.71 Dental Insurance Plan 66035 Environmental Science Associate 32,664.55 Professional Services J-40-5&J-40-10 66036 Flo-Systems, Inc. 38,000.20 Submersible Dry Pit Pump with Submersible Motor 66037 Fortis Benefits Insurance Company 29,245.18 Long-Term&Short-Tenn Disability Ins. Premium 66038 GHD, L.L.C. 56,060.50 Professional Services-Implementation of Asset Management Strategic Plan 66039 Houston&Hams PCS, Inc. 39.783.03 Seweriine Cleaning-City of Tustin&Unincorporated County Property 66040 HDR Engineering, Inc. 27,262.23 Professional Services J-40-10, 132-82&SP-74 66041 Kaiser Foundation Health Plan 60,522.08 Medical Insurance Premium 66042 Kemiron Companies,Inc. 99,161.02 Ferric Chloride MO 9-27-95 66043 Malcolm Pimle, Inc. 45,855.20 Professional Services J-79 66044 MDS Consulting 34,125.00 Professional Services 1-2-4 66045 MWH Americas, Inc. 133,856.51 Professional Services 132-74 66046 PloneerAmericas,Inc. 236,349.52 Sodium Hypochlorite 66047 Polydyne, Inc. 66,128.85 Cationic Polymer MO 3-11-92 66048 Psomas 54,216.00 Professional Services SP-15-Geographic Information System 66040 Sancon Engineering, Inc. 47,300.00 Construction-Manhole Rehabilitation Program 66050 Tran Consulting Engineers 54,239.10 Engineering Services 7-21 66051 Tule Ranch/Magan Farms 243,509.20 Residuals Removal MO 3-29-95 66052 Teksystems 35,693.00 Temporary Employment Services 66053 U.S. Peroxide, L.L.C. 116,061.53 Odor&Corrosion Control Treatment for Coll.Sys.; Hydrogen Peroxide&Ferrous Chloride 66054 ARB,Inc. 1,178,956.25 Construction 7-39&7-41 66055 J F Shea Construction,Inc. 1,936,333.47 Construction P2-85,J-77,J-35-1,J-35-2 66056 J R Filanc Construction 1,562,080.50 Construction P1-76 66057 Margate Construction,Inc. 382,434.93 Construction P1-37&J-67 66058 Olsson Construction, Inc. 160,569.00 Construction 132-82 66059 Southern Contracting Company 72,346.00 Construction J-33-1A 66060 Torrey Pines Bank 173,564.50 Construction 131-76, Retention 66061 Union Bank of California 130.995.14 Construction 7-41, Retention 66062 Abrasive Engineering Tool&Equipment 25.86 Hardware 66063 Absolute Standards, Inc. 205.00 Lab Parts&Supplies 66064 Accounting Options, Inc. 10.350.56 Temporary Employment Services 66065 AccuStandard, Inc. 567.75 Lab Supplies 66066 Acoustical Material Services 1,479.61 Ceiling Tile 66067 Advance Business Graphics 1,628.53 Forms 66068 Agilent Technologies, Inc. 872.78 Lab Parts&Supplies 66069 Airco Filter Service 2.057.42 Filters H:WepflfinWO%CRANE%FAHR%FAHR20041NOVEMBERVairm Paid Report-103104.x1a EXHIBIT B finn1nM Paae 1 of 111annna Claims Paid From 10/18104 to 10/31104 Warrant No. Vendor Amount Description 66070 Airgas Safety, Inc. 1,571.07 Safety Supplies 66071 Airway Packing&Shipping, Inc. 237.05 Freight Charges 66072 Alco Products, Inc. 292.93 Janitorial Supplies 66073 Alhambra Foundry Co., Ltd. 3,986.75 Manhole Frames&Covers 66074 American Red Cross 235.00 CPR Training&Miscellaneous Supplies 66075 American Training Resources, Inc. 537.31 Video-Forklift Safety 66076 Analysts, Inc. 589.58 Testing Kits 66077 Aquarium Doctor 105.44 Human Resources Aquarium Service 66078 Aquatic Testing Laboratories 1,000.00 Toxicity Testing 66079 Arch Wireless 1,592.50 Paging Service-Airtime,Service&Equipment 66080 Asset Management Solutions, L.L.C. 5,301.39 Professional Services-PeopleSoft Pilot Program far Fleet Services Staff 66081 AKM Consulting Engineers 7.963.20 Professional Services 7-36&7-41 -Trunk Sewer Improvements 66082 American Telephone&Telegraph Corp. 24.47 Telephone Service 66083 Baker Tanks 560.00 Tank Rentals 66084 Battery Specialties 979.64 Batteries 66085 Bell Pipe&Supply Co. 871.70 Mechanical Parts&Supplies 66086 BioMerieux Vitek, Inc. 558.65 Lab Supplies 66087 Bondlogistix, L.L.C. 6,209.56 Prof.Serv.-Preparation of Interim Arbitrage Rebate Report-Series 2000"B"Series COPS 66088 Brinderson 13,938.00 Professional Services 132-79 66089 C.S.U.F. Foundation 11,079.50 Membership-Center for Demographic Research 66090 California Auto Collision 2,447.99 Vehicle Repairs-V-478,V-525&V-486 66091 Califomia Hazardous Services, Inc. 4,200.00 Underground Storage Tank Cleaning 66092 Southern Califomia Marine Institute 11,390.00 Ocean Monitoring Vessel Support 66093 Calply 755.00 Ceiling Tile 66094 Caltrol, Inc. 6.894.59 Valves 66095 Cameron Welding Supply 163.51 Welding Supplies 66096 Cardlock Fuel Systems, Inc. 16,574.14 Fueling District Vehicles at Local Gas Stations 66097 Carleton Engineers&Consultants, Inc. 3,880.00 Engineering Services-Air Quality 66098 Carollo Engineers 20,160.93 Professional Services P2-60&Coordinated Commercial Enterprise Project 66099 City of Fullerton 4,050.00 Manhole Grade Adjustments-City of Fullerton 66100 Cole-Parmer Instrument Co. 238.05 Lab Parts&Supplies 66101 Columbia Analytical Services, Inc. 600.00 Analysis of Wastewater, Industrial Wastewater&Biosolids 66102 Compressor Components of Califomia 3,056.00 Compressor Repair&Maint.Services 66103 Computer Sciences Corp. 12,933.12 Consulting&Lab Services-Assay Pilot Project 66104 Consolidated Elect. Distributors, Inc. 4,055.25 Electrical Supplies 66105 Consumers Pipe&Supply Co. 761.39 Plumbing Supplies 66106 Continental Exhibitions, Inc. 725.00 Safety&Health Division Meeting Registration 66107 Cooper Cameron Corporation 1,093.13 Valves 66108 Corporate Business Interiors 3,976.01 Modifications to Cubicles at Human Resources Bldg. 66109 Corporate Express 2,102.42 Office Supplies 66110 Corporate Image Maintenance, Inc. 160.00 Custodial Services Spec. No.9899-09 66111 Cortech Engineering 4,397.14 Pump Parts&Supplies 66112 Counterpart Enterprises, Inc. 1,782.20 Mechanical Parts&Supplies 66113 County Wholesale Electric Co. 351.60 Electrical Parts&Supplies H:%depRftn12101CRANE%FAHRIFAHR20041NOVEMBER%C43ims Paid Report-103104.xls EXHIBIT B finninnr Pace 2 of 9 1 vannne Claims Paid From 10/16/04 to 10/31/04 Warrant No. Vendor Amount Description 66114 Cytec Industries, Inc. 7,495.93 Anionic Polymer 66115 California Special Districts Association 170.00 Training Registration 66116 CWEA Membership 388.00 Membership-Calif.Water Environment Assoc. 66117 Cytec 6,384.60 Computer Hardware 66118 David's Tree Service 1,075.00 Tree Maint.Service 66119 Del Mar Analytical 5,516.00 Analysis of Biosolids and Wastewater 66120 Dell Computer 19,374.51 (2)Server Arrays&(8)Server Hard Drives 66121 Dunn-Edwards Corporation 1,217.33 Paint Supplies 66122 DGA Consultants, Inc. 4,106.00 Professional Services-CCTV Data Evaluation&Support 66123 Ecology Control Industries 8,619.67 Hazardous Waste Disposal 66124 Elsevier Science 1,321.00 Publication 66125 Enchanter, Inc. 4,500.00 Ocean Monitoring&Outfall Inspection&Maintenance 66126 Environmental Microbiology Consulting 2.720.00 Lab Services-Research Primary Settlings in Pit.2 Basins 66127 Environmental Resource Association 1,461.60 Lab Parts&Supplies 66128 Equapac 2,024.80 Hydrochloric Acid 66129 ESRI, Inc. 2,331.00 Programming&Database Systems Division Meeting Registration 66130 Fed Ex Corporation 985.04 Freight Services 66131 First American Real Estate Solutions 658.00 On-Line Orange County Property Information 66132 Fisher Scientific 20,772.93 Lab Supplies 66133 Fluor Enterprises, Inc. 5,177.56 Engineering Services SP-81 66134 Fountain Valley Rancho Hand Wash 722.90 Truck Wash Tickets or Gasoline 66135 Franklin Covey 645.83 Office Supplies 66136 Frasco Profiles 560.50 Human Resources Background Checks 66137 Frontline Management, Inc. 1,193.51 Controller 66138 Fry's Electronics 224.05 Computer Supplies 66139 Full Spectrum Analytics 696.96 Instrument Repair&Maintenance Service 66140 Full Spectrum Analytics, Inc. 782.10 Instrument Repair&Maintenance Service 66141 FT, Inc. 825.00 Forms-Accounts Payable Check Stack 66142 G. E.Supply 773.30 Electrical Parts&Supplies 66143 Ganahl Lumber Company 96.98 Lumber/Hardware 66144 George T. Hall 53.88 Electrical Supplies 66145 George Yardley Co. 1,434.55 Lab Supplies 66146 Getinge Castle 908.50 Lab Equipment Maintenance&Service 66147 Gierlich-Mitchell, Inc. 95.27 Mechanical Parts&Supplies 66148 Grainger, Inc. 1,151.60 Electrical Parts&Supplies 66149 Grating Pacific, Inc. 1,317.03 Welded Steel Grating 66150 Great Western Sanitary Supplies 106.03 Janitorial Supplies 66151 Guarantee Records Management 189.66 Off-Site Records Storage 66152 Hach c/o Ponton Industries 185.58 Lab Parts&Supplies 66153 Hach Company 427.02 Electrical Parts&Supplies 66154 Harold Primrose Ice 55.50 Ice For Samples 66155 Harrington Ind. Plastics 848.35 Mechanical Parts&Supplies 66156 Harrington Industrial Plastics, Inc. 3,523.03 Mechanical Parts&Supplies 66157 Home Depot 935.84 Misc. Repair&Maintenance Material H:WepriRn%210%CRANE%FAHR%FAHR2004%NOVEMBER%Claims Paid Report-103104.xls EXHIBIT B anmnm. Paoe 3 of 9 iimnnm Claims Paid From 10/10/04 to 10/31/04 Warrant No. Vendor Amount Description 66158 Hopkins Technical Products 3,027.12 Valves 66159 Hub Auto Supply 661.02 Vehicle Parts&Supplies 66160 City of Huntington Beach 552.34 Water Use 66161 Industrial Distribution Group 6.793.52 Mechanical Parts&Supplies, Paint, Locks&Tools 66162 Industrial Threaded Products, Inc. 1,073.27 Mechanical Parts&Supplies 66163 Innerline Engineering 2,324.01 Sewerline Video Inspection-7-39 66164 Iron Mountain 86.06 Bid Document Storage Fees P1-37 66165 Irvine Ranch Water District 3.90 Water Use 66166 Irvine Technology Corporation 20,784.00 Temporary Employment Services 66167 Ism,I nc. 5,129.73 Controller Assemblies 66168 ISI, Inc. 1,663.80 Software Maintenance&Support 66169 J&L Industrial Supply 451.11 Mechanical Parts&Supplies 66170 Jay's Catering 751.41 Meeting Expenses 66171 Kfarce, Inc. 806.99 Temporary Employment Services 66172 Kienow Associates, Inc. 7,235.48 Legal Services 1-2-4 66173 Lab Safety Supply, Inc. 340.52 Lab Parts&Supplies 66174 Lee&Ro, Inc. 18.809.82 Professional Services 5-51 &5-52 66175 Lucci's Gourmet Foods, Inc. 37.50 Meeting Expense 66176 Lustre-Cal 621.75 OCSD Decals 66177 LINJER 5,029.06 Professional Service-DART MO 9-22-99 66178 Mac&Associates,An Industrial Dist.Co. 654.58 Valves 66179 Managed Health Network 955.80 Employee Assistance Program 66180 Mason West, Inc. 995.61 Mechanical Parts&Supplies 66181 Mayer, Brown, Rowe&Maw, L.L.P. 5,000.00 Professional Services-Strategic Planning&Advocacy 66182 McMaster-Carr Supply Co. 2,015.65 Mechanical Parts&Supplies 66183 McRay Industries, Inc. 11,438.63 Mechanical Parts&Supplies 66184 Medlin Controls Co. 473.52 Instrument Supplies 66185 Mid-West Associates 989.12 Pump Supplies 66186 Midway Mfg.&Machining Co. 14,368.10 Mechanical Paris&Supplies 66187 Mission Abrasive&Janitorial Supplies 207.96 Janitorial Supplies 66188 Mitchell Instrument Co. 1,136.00 Instrument Parts&Supplies 66189 Moreland&Associates 8,655.00 Auditing Services MO 3-8-95 66190 Motion Industries, Inc.CA 55 1,535.98 Mechanical Parts&Supplies 66191 National Fire Protection Association 580.50 Subscription 66192 National Plant Services, Inc. 17,060.00 Vacuum Truck Services 66193 National Seminars Group 179.00 Training Registration 66194 Neal Supply Co. 29.70 Mechanical Parts&Supplies 66195 Nextel Communications 1,216.62 Cellular Phones&Air Time 66196 Ninyo&Moore Corporate Accounting 9,734.00 Professional Services-Materials Testing, Inspection&Geotechnical Engrg. 66197 Norlab 189.60 Chemicals 66198 Numatic Engineering 186.69 Mechanical Parts&Supplies 66199 Office Depot Business Services Div. 503.64 Office Supplies 66200 OneSource Distributors, Inc. 2,230.12 Electrical Parts&Supplies 66201 Orange County Hose Company 82.92 Hydraulic Hose Supplies&Parts H:%deprifin12101CRANEIFAHR%FAHR20U%NOVEMBER%Cla(nts Paid Report-103104.xls EXHIBIT B fi.Mnn.. Paoe 4 of 9 11IR17rA -1 Claims Paid From 10116/04 to 10131/04 Warrant No. Vendor Amount Description 66202 Orange Courier 88.70 Courier Services 66203 Orange Fluid System Technologies, Inc. 343.05 Plumbing Parts&Supplies 66204 Osterbauer Compressor 2,535.52 Mechanical Supplies 66205 Oxygen Service Company 470.49 Specialty Gases 66206 OCB Reprographics 6,509.00 Printing Service-MO 1/26100 66207 Pacific Bell Internet Services 328.93 Internet Service 66208 Pacific Mechanical Supply 2,212.69 Plumbing Supplies 66209 Parker Supply Company 5,664.06 Mechanical Parts&Supplies 66210 PenValve 206.20 Plumbing Parts&Supplies 66211 Perma Pure, Inc. 178.08 Lab Parts&Supplies 66212 Power Measurement USA, Inc. 7,003.75 Software Upgrade&Support 66213 Primary Source Office Furnishings, Inc. 75.00 Office Furniture 66214 Propipe 2,003.90 CCTV Sewerline Inspection-City of Tustin 66215 Prudential Overall Supply 1,939.30 Uniforms&Misc.Supplies 66216 PCS Express, Inc. 122.00 Courier Service 66217 Raco Manufacturing&Engineering Co. 524.88 Computer Hardware/Software 66218 Rainbow Disposal Co. 2,816.57 Trash Removal 66219 Reliastar 9,889.50 Employee Basic Life&Managers'Insurance Premiums 66220 Ricoh Business System 1,623.90 Color Copier Lease 66221 RMS Engineering&Design, Inc. 1,370.00 Engineering Services-Covering 12V Switchgear at Pit.2 66222 RPM Electric Motors 172.40 Motor 66223 Safetycare, Inc. 253.21 Safety Video 66224 Santa Ana Reg.Water Quality Control 522.00 Permit Fees-Projects 5-51 5-52 66225 Schwing America, Inc. 1.388.70 Valves 66226 Scottel Voice&Data, Inc. 2,284.80 Telephone System Maintenance 66227 Seton Name Plate 415.78 Reflective Traffic Safety Sign 66228 Sewer Equipment Company of America 124.23 Hose Guides 66229 Shamrock Supply Co., Inc. 898.23 Janitorial Supplies 66230 Shureluck Sales&Engineering 1,117.78 Mechanical&Paint Supplies 66231 Sigma-Aldrich, Inc. 866.32 Lab Parts&Supplies 66232 Smardan Supply Company-Fountain Valley 123.95 Mechanical Parts&Supplies 66233 Smith Pipe&Supply 450.17 Plumbing Supplies 66234 Smith-Emery Company 12.611.25 Soils,Concrete&Other Materials Testing 66235 So.Cal.Gas Company 22.726.70 Natural Gas 66236 Southern California Edison 18,002.25 Power 66237 Southern California Edison Co. 23,522.69 Construction-SCE/OCSD Projects 5-51 &5-52 66238 Southern California Edison 2,255.52 Power 66239 Southern Counties Lubricants 2,666.49 Engine Oil 66240 Southwest Scientific, Inc. 2,880.16 Instrument Parts&Supplies 66241 Summit Steel 2,175.58 Metal 66242 Sunset Ford 228.01 Auto Parts&Service 66243 Sunset Industrial Parts 147.29 Mechanical Supplies 66244 Technical Service Group, Inc. 1,381.60 SCADA System VAX Service Agreement 66245 Systime Computer Corp. 4,350.00 Professional Services-EnterpriseOne FIS System Upgrade&Support H:Weprifin12101CRANEIFAHRIFAHR20041NOVEMBER%Clalme Paid Report-103104.xls EXHIBIT B en171(thn Paoe 5 of 9 11lannnd Claims Paid From 10/18/04 to 10/31/04 Warrant No. Vendor Amount Description 66246 SARBS 135.00 Environmental Compliance Services Division Meeting Registration 66247 The Walking Man, Inc. 1,050.00 Public Notice Printing&Mailing Services Various Projects 66248 Thompson Industrial Supply, Inc. 11,030.19 Mechanical Parts&Supplies-Rebuild Shop 66249 Tony's Lock&Safe Service&Sales 104.92 Locks&Keys 66250 Townsend Public Affairs 5,000.00 Legislative&Executive Advocate for Grant Funding 66251 Southern California Trane Service 116.18 Valves 66252 Truck&Auto Supply, Inc. 169.42 Automotive Supplies 66253 The Unisource Corporation 134.43 Office Supplies 66254 United Parcel Service 93.60 Parcel Services 66255 LIC Regents 1,250.00 Membership 66256 US Equipment Co., Inc. 223.24 Mechanical Parts&Supplies 66257 The Vantage Group, L.L.C. 23,850.00 Temporary Employment Service 66258 Vapex, Inc. 472.00 Pumps 66259 Varian, Inc. 2,158.62 MS Workstation Upgrade 66260 Verizon California 2,080.94 Telephone Services 66261 Veme's Plumbing 330.00 Service Contract-Testing&Geri. Backflow Devices at Pits. 1 &2&Pump Sta. 66262 Vision Service Plan-(CA) 9,540.96 Vision Service Premium 66263 Vortex Corp. 989.95 Door Repair&Maintenance Service 66264 VWR Scientific Products Corporation 8,367.27 tab Parts&Supplies 66265 The Wackenhut Corporation 6,008.30 Security Guards 66266 Water 3 Engineering, Inc. 5,991.54 Engineering Services J-67 66267 Waxle Sanitary Supply 878.24 Janitorial Supplies 66268 West Texas A&M University 5,700.00 OKactometry Analyses 66269 West-Lite Supply Company, Inc. 202.52 Electrical Supplies 66270 Westport Aparatus DBA Breaker Supply 247.64 Electrical Parts&Supplies 66271 Xerox Corporation 1,142.73 Fax&Copier Leases 66272 Xpedex Paper&Graphics 221.34 Office Supplies 66273 Ararat Construction Co., Inc. 19,408.37 Construction P1-62 66274 California Bank&Trust 8,038.00 Construction J-33-1A, Retention 66275 Orange Community Bank 17,841.00 Construction P2-82, Retention 66276 Matt Adams 259.47 Meeting/Training Expense Reimbursement 66277 Jose C.Ambriz 170.07 Meeting/Training Expense Reimbursement 66278 Donald R.Cleveland 51.00 Meeting/Training Expense Reimbursement 66279 David P. Halverson 662.74 Meeting/Training Expense Reimbursement 66280 Michael H. Harting 686.44 Meeting/Training Expense Reimbursement 66281 Vincent S. Lodryer 170.00 Meeting/Training Expense Reimbursement 66282 Henry E. Lorimer 428.00 Meeting/Training Expense Reimbursement 66283 Riaz K. Moinuddin 932.85 Meeting/Training Expense Reimbursement 66284 Jamiann M.Questa 118.52 Meeting/Training Expense Reimbursement 66285 Donald W. Ragan 757.80 Meeting/Training Expense Reimbursement 66286 Ernest R.Savedra 90.00 Meeting/Training Expense Reimbursement 66287 Duane T.Smith 259.47 Meeting/Training Expense Reimbursement 66288 Douglas M.Stewart 1,956.00 Meeting/Training Expense Reimbursement 66289 Robert J.Taylor 537.33 Meeting/i-raining Expense Reimbursement H:%de{sflftn12101CRANEIFAHRiFAHR20041NOVEMBER%Clalms Paid Report-103104.xts EXHIBIT B enninrt.. Paae 6 of 9 1 lranrne Claims Paid From 10116/04 to 10/31/04 Warrant No. Vendor Amount Description 66290 Robert J.Thiede 167.75 Meeting/Training Expense Reimbursement 66291 Shane A.Towns 259.47 Meeting/Training Expense Reimbursement 66292 Walter W.Williams 170.07 Meetingrrraining Expense Reimbursement 66293 Steve Anderson 706.00 Meeting/Training Expense Reimbursement 66294 Donald Hughes 641.92 Meeting/Training Expense Reimbursement 66295 Mari Isoda and Anton Richardson, 6,500.00 Claim Settlement-Vehicle Accident 66296 Wild Rivers Waterpark 1,263.50 Reimbursable Employee Activity Expense 66297 Yumi Isoda and Mari Isoda 3,500.00 Claim Settlement-Vehicle Accident 66298 California Recreation Company 300.00 Boat Slip Rental-Ocean Monitoring Vessel 66299 Southern California Edison 121.707.11 Power 66300 Woodruff,Spradlin&Smart 161.490.35 Legal Services MO 7-26-95 66301 Air Cleaning Solutions 992.00 Freight Charges 66302 Airgas Safety, Inc. 1,000.21 Safety Supplies 66303 Analytical Planning Services, Inc. 945.00 Professional Services J-67 66304 ASCE-HHTG-Hydrology&Hydraulics 46.00 Engineering&Construction Division Meeting Registration 66305 AT&T Universal Biller 2,920.10 Telephone Service 66306 American Telephone&Telegraph Corp. 195.40 Telephone Service 66307 Basler Electric Company, Department 590 2,861.23 Generator Protection System&24V Power Supply 66306 Beau Geste Enterprises 6,500.00 On-Site Training 66309 California Auto Collision 1,513.58 Repairs&Maintenance Service-V486 66310 Caltrol, Inc. 10,259.89 Electrical Parts&Supplies 66311 Court Order 150.00 Wage Garnishment 66312 Consolidated Elect. Distributors, Inc. 1,643.29 Electrical Parts&Supplies 66313 Consumers Pipe&Supply Co. 14.39 Plumbing Supplies 66314 Corporate Express 2,571.44 Office Supplies 66315 County of Orange 182.14 Wage Garnishment 66316 Court Trustee 69.12 Wage Garnishment 66317 Department of Child Support Services 188.50 Wage Garnishment 66318 DHL Express(USA), Inc. 45.68 Freight Services 66319 Employee Benefits Specialists, Inc. 9,792.38 Reimbursed Prepaid Employee Medical&Dependent Care 66320 Court Ober 445.00 Wage Garnishment 66321 FedEx Corporation 149.62 Freight Services 66322 Fisher Scientific 776.72 Lab Supplies 66323 Fleetcor 113.79 Gasoline&Lubricants 66324 Franchise Tax Board 100.00 Wage Garnishment 66325 Get Motivated Seminars, Inc. 98.90 Project Management Office Meeting Registration 66326 Graybar Electric Company 100.18 Cabinets for CRISP Hardware System-Bacteria Reduction Program 66327 Industrial Threaded Products, Inc. 82.72 Mechanical Parts&Supplies 66328 Internal Revenue Service 300.00 Wage Garnishment 66329 Internal Revenue Service 200.00 Wage Garnishment 66330 Intl. Union of Oper. Eng.AFL-CIO Local 501 3,887.42 Dues Deduction 66331 Irvine Ranch Water District 37.19 Water Use 66332 Kelly Paper 352.99 Paper 66333 L&N Image Apparel 371.26 (20)OCSD Shirts-Employee Incentive Program H:Wepflfln%2101CRANE%FAHR%FAHR20041NOVEMBER%Clalms Paid Report-103104.xts EXHIBIT B snninrU. Pace 7 of 9 ivannm Claims Paid From 10116/04 to 10/31104 Warrant No. Vendor Amount Description 66334 MassMutual Michel Financial Group 2,604.14 Executive Disability Plan Premium 66335 McMaster-Carr Supply Co. 746.97 Mechanical&Safety Supplies 66336 Mechanical Drives Co. 91.46 Instrument Supplies 66337 Midway Mfg&Machining Co. 8,835.50 Repair&Maintenance Service-(2)Belt Press Driver Rollers 66338 Mike Prlich&Sons 6,038.00 Engineering Services-Install 72"ID Manhole 66339 Court Order 225.00 Wage Garnishment 66340 Motion Industries, Inc.CA 55 30.01 Repair&Maintenance Material 66341 MSA-C/O Geoff Cobbett 85.00 Membership 66342 National Bond&Trust 2,462.28 U.S.Savings Bonds Payroll Deductions 66343 Neal Supply Co. 13.49 Freight Charges 66344 Orange Fluid System Technologies, Inc. 549.20 Mechanical Parts&Supplies 66345 Oxygen Service Company 266.59 Specialty Gases 66346 OCEA 607.86 Dues Deduction 66347 Pacific Mechanical Supply 313.00 Plumbing Supplies 66348 Partners Consulting Services 22,080.00 FIS On-Site Support-One Worid XE Migration Project 66349 Court Order 296.00 Wage Garnishment 66350 Peace Officers Council of CA 1,602.00 Dues Deduction 66351 Process Equipment Company 5,128.90 Replacement of Power Building Double Doors 66352 Pump Engineering 31.94 Freight Charges 66353 R. L.Abbott&Associates 3,000.00 Kern County Biosolids Consulting Services 66354 Reilly&Associates 5,915.10 Investigative Services 66355 Schwing America, Inc. 769.34 Repair&Maintenance Service on Schwing Truck Loading Pumps 1,2&3 66356 Scott Specialty Gases, Inc. 25.86 Demurrage 66357 Seal's Compressed Gases 39.75 Oxygen Bottle Refills for Medical Team 66358 Shureluck Sales&Engineering 2,727.27 Mechanical Parts&Supplies 66359 Skalar, Inc. 1,295.00 Installation&Training on Skalar Analyzer 66360 Smith-Emery Company 260.00 Soils,Concrete&Other Materials Testing 66361 Court Order 721.50 Wage Garnishment 66362 Southern Califomia Edison 29.99 Power 66363 Summit Steel 341.59 Metal 66364 Systime Computer Corp. 23,900.00 Professional Services-EnterpdaeOne FIS System Upgrade&Support 66365 SBC 1,726.89 Telephone Services 66366 SBC Long Distance 73.81 Telephone Services 66367 Thompson Industrial Supply, Inc. 3,198.97 Mechanical Supplies 66368 The Unisource Corporation 223.44 Office Supplies 66369 United Parcel Service 6,811.52 Parcel Services 66370 United Way 245.00 Employee Contributions 66371 Univar USA 270.37 Chlorine 66372 Verizon 49.78 Telephone Service 66373 Verizon California 5.412.90 Telephone Services 66374 Xerox Corporation 2,631.90 Fax&Copier Leases 66375 Court Order 597.50 Wage Garnishment 66376 Aram C. Chanhbazian 188.77 User Fee Refund Regarding Septic Tanks 66377 Bemal Peralta Trust 1,003.95 User Fee Refund Regarding Septic Tanks H:Wepf1fin121MCRANEAFAHRIFAHR20041NOVEMBER%CIalnis Paid Report-103104.xis EXHIBIT B finn+nf� Pace 8 of 9 +vannxu Claims Paid From 10/16/04 to 10/31104 Warrant No. Vendor Amount Description 66378 Betsy Causey Trust 1,003.95 User Fee Refund Regarding Septic Tanks 66379 California Recreation Company 2,914.22 Temporary Boat Slip Rental-Ocean Monitoring Vessel 66380 Cecilia Gutierrez-Swanson 1,003.95 User Fee Refund Regarding Septic Tanks 66381 County of Orange-Auditor Controller 825.00 Administrative Processing Fee for Supplemental Sewer Fee Adjustments/Cancellations 66382 Damn Kinney 1,003.95 User Fee Refund Regarding Septic Tanks 66383 Darrick Garcia 1,003.95 User Fee Refund Regarding Septic Tanks 66384 Hartford Fire Insurance Company 1.008.14 Claim Settlement-Vehicle Accident 66385 Jerome Kult 1,418.21 User Fee Refund Regarding Septic Tanks 66386 Joel Verduzco 1,003.95 User Fee Refund Regarding Septic Tanks 66387 Marcleno Santiago 1,681.27 User Fee Refund Regarding Septic Tanks 66388 Oscar Abreu 1.418.21 User Fee Refund Regarding Septic Tanks 66389 SARBS 135.00 Training Registration 66390 William Hopkins 1.003.95 User Fee Refund Regarding Septic Tanks 66391 SBC 6,169.00 Telephone Services Total Accounts Payable-Warrants $ 9,154,490.61 Payroll Disbursements 35717-35724 Employee Paychecks $ 20,178.59 EMT Refro Payroll&Correction 35725-35817 Employee Paychecks 149,500.39 Biweekly Payroll 10/27/04 35818-35820 Employee Paychecks 4.379.34 Termination Paychecks&Reissue Check for Direct Deposit Void 104054-104590 Dined Deposit Statements 1,086,018.06 Biweekly Payroll 10/27/04 Total Payroll Disbursements $ 1,260,076.38 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 799,717.99 Biweekly Payroll 10/27/04 U.S. Bank 354,908.61 October Interest Payment for Series 2000,A&B Certificates of Participation Total Wire Transfer Payments $ 1,154,626.60 Total Claims Paid 10/16/04-10/31104 $ 11.569.193.59 H:WepriRn%218ACRANE%FAHR%FAHR20041NOVEMBER%Claims Paid Report-103104.xts EXHIBIT B e„ninn,, Paae 9 of 9 iimmna 9 Y Orange County Sanitation District MINUTES BOARD MEETING DECEMBER 15, 2004 o���Oil S ANI rq��o rNf EN ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 's Minutes for Board Meeting Page 2 12/15/04 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on December 15, 2004, at 7:00 p.m., in the District's Administrative Offices. Following the Pledge of Allegiance and invocation the roll was called and the Secretary reported a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X Steve Anderson, Chair Steve Simonian X James M. Ferryman, Vice Chair Arlene Schafer A Don Bankhead Leland Wilson X Patricia Bortle Rich Freschi X Carolyn Cavecche Steve Ambriz X Alberta Christy Mike Garcia X John Collins Larry Crandall X Bill Dalton Bruce Broadwater A Doug Davert Tony Kawashima A Brian Donahue David Shawver X Michael Duvall Keri Lynn Wilson X Norman Z. Eckenrode Judy Dickinson X Cathy Green Gil Coerper X Alice B. Jempsa Marilynn M. Poe X Beth Krom Christina Shea X Phil Luebben Lydia Sondhi X Patsy Marshall Jim Dow A Darryl Miller Peer A. Swan X Roy Moore John Beauman X Joy Neugebauer Grace Epperson X Tod Ridgeway Don Webb A Harry Sidhu Bob Hernandez X Jim Silva Chuck Smith A Paul Walker X Larry Herman A I Paul Yost Charles Antos STAFF MEMBERS PRESENT: Blake P. Anderson, General Manager; Penny Kyle, Board Secretary; Carol Beekman; Bob Ghirelli; Dave Ludwin; Bob Ooten; Gary Streed; Lisa Tomko; Lilia Kovac; OTHERS PRESENT: Thomas L. Woodruff, General Counsel; Brad Hogin; Don Hughes; Jim Willett; Kazumi Kuniyasu; Anna Piercy; Shirley McCracken; Layne Baroldi; Ralph Rodriguez; Tyrone Given; Dionne Kardos Minutes for Board Meeting Page 3 12/15/04 3. MOVED, SECONDED AND DULY CARRIED: Receive and file minute excerpts from the following re appointment of active and alternate Directors, as follows: City/Agency Active Director Alternate Director Anaheim Harry Sidhu Bob Hernandez Cypress Phil Luebben Lydia Sondhi PUBLIC COMMENTS Mr. Jim Willett, president of The Yakima Company, addressed the Directors requesting the District to honor the biosolids contract currently in effect with his company. Chair Anderson thanked Mr. Willet for his comments and informed the public that there was a discussion about the legal claim filed by the Yakima Company scheduled during closed session. REPORT OF THE CHAIR Chair Anderson presented Shirley McCracken, Anna Piercy, John Collins, and Patricia Bortle with resolutions of commendation for their service on the Orange County Sanitation District Board. Appointments to the Groundwater Replenishment System Steering Committee were announced. Mike Duvall and Carolyn Cavecche will be voting members, with Jim Ferryman, Don Bankhead and Larry Crandall as alternates 1, 2, and 3 respectively. It was announced that the working committees would be dark in January. The Steering Committee will meet on January 26th and the Board meeting will convene at 7:15 PM to allow everyone an opportunity to meet the new board members. Chair Anderson noted the meeting this evening would be adjourned in memory of Dick Edgar who passed away as a result of an automobile accident. Mr. Edgar served as Chair of the Joint Boards of Directors from 1984 to 1985 and in several capacities as a Director during the 1980's. REPORT OF THE GENERAL MANAGER Bob Ooten, Director of Operations & Maintenance recognized Tyrone Given for 25-years of service. General Manager Blake Anderson referred the Directors to items included in their folders. 1) a letter from the California Regional Water Quality Control Board forwarding a Civil Administrative Liability Complaint and demanding $160,000 as an Administrative Penalty for the Labor Day spill to be discussed during closed session; 2) a flyer for the Orange County Leadership Symposium scheduled January 14th -16th at UCLA's Conference Center in Lake Arrowhead; and 3) the General Manager also referred to the quarterly report on the District's capital improvement program. Minutes for Board Meeting Page 4 12/15/04 REPORT OF THE GENERAL COUNSEL Thomas L. Woodruff, General Counsel reiterated that a Civil Administrative Liability Complaint had been received from the California Regional Water Quality Control Board and requested that this item be added to the closed session agenda. MOVED, SECONDED AND DULY CARRIED: (1) Find that the matter needs immediate action and that the need for action came to the District's attention following posting of the agenda, pursuant to authority of California Government Code Section 54954.2(b); and (2) Add an item to the agenda Item 17(b)(4) as follows: California Regional Water Quality Control Board Administrative Civil Liability Complaint No. R8-2004-0108. [California Government Code Section 54956.9] APPROVAL OF MINUTES The Chair ordered that the minutes of the regular meeting held November 17, 2004 be reviewed upon availability and considered for approval at the January Board meeting. RATIFICATION OF PAYMENT OF CLAIMS MOVED, SECONDED AND DULY CARRIED: Ratify payment of claims set forth on exhibits "A" and "B", attached hereto and made a part of these minutes. ALL DISTRICTS 11/15/04 11/30/04 Totals $10,479,642.08 $10,336,187.10 Director Green abstained from discussion and voting on Warrant No. 66854. Director Dalton abstained from discussion and voting on Warrant No. 66849. Abstentions were pursuant to California Government Code Section 84308. CONSENT CALENDAR 9. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 2 to Purchase Order No. 101758-OB for Purchase of Cationic Polymer, Specification No. C-2003-143, issued to Polydyne Inc., to provide for the additional purchase of Mannich cationic polymer for a price increase of$0.23, increasing the total unit price to $1.28 per pound, and increasing the total contract amount of$913,000 by $375,000 to an estimated annual amount of$1,288,000 for the period ending June 30, 2005. b. MOVED, SECONDED AND DULY CARRIED: Accept Abandonment of Airbase Trunk Sewer—California Street, Contract No. 6-13-3, as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement with Mike Prlich and Sons, Inc. Minutes for Board Meeting Page 5 , 12/15/04 COMMITTEE REPORTS AND RECOMMENDED ACTIONS 11. DRAFT STEERING COMMITTEE: A verbal report was presented by Director Anderson, Chair of the Steering Committee, re the December 15, 2004 meeting. Director Anderson confirmed that the District has been included in the final FY 2005 Congressional Omnibus Spending Bill for$800,000 assistance in constructing for secondary treatment facilities. SAWPA will also receive an award of$300,000 for important SARI work above Prado Dam. The Groundwater Replenishment System will also receive $2.5 million, which brings the total grants to $92.5 million for the project when combined with other grants previously received or awarded. It was reported that the General Manager, Blake Anderson, has accepted the appointment of Vice Chair of Public Infrastructure, a subcommittee of the Orange County Business Council. Taking this opportunity puts the District in a position to educate the businesses of the District's infrastructure, and to gain support for the various programs which involve the cities' participation. Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order the Steering Committee Minutes for the meeting held on November 17, 2004 to be filed. Non-Consent Calendar b. Review and consideration of agenda items considered by the Steering Committee re the December 15, 2004 meeting. C. No items considered. 12. OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE (OMTS) OMTS Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on December 1, 2004 to be filed. b. MOVED, SECONDED AND DULY CARRIED: (1)Authorize the General Manager to renew the contract with Cytec Industries for the Purchase of Anionic Polymer, Specification No. C-149, for the period of January 1, 2005 through August 31, 2005, providing for a unit price increase of$0.56 per active pound, for a total unit price of$2.30 per active pound, for an estimated increase of$21,000, increasing the estimated annual cost through August 31, 2005 to $235,000; and, (2) Authorize the General Manager to conduct anionic polymer performance trials in preparation for bidding and awarding a contract for anionic polymer effective September 1, 2005. Minutes for Board Meeting Page 6 12/15/04 C. MOVED, SECONDED AND DULY CARRIED: Approve a Consulting Services Agreement with AKM Consulting Engineers for a Dig Alert Technician, Specification No. CS-2004-202, for an amount not to exceed $117,000, plus a contingency of$32,400, for an annual amount not to exceed $149,400, and providing for three one-year extensions. d. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 04- 29, approving the Sixth Amended Joint Powers Agreement with Southern California Coastal Water Research Project Authority (SCCWRP), providing for the initial term of the agreement for one year, with a total term of four years, including extensions effective July 1, 2005 through June 30, 2009, with the District's contribution not to exceed $1,399,527 over the four-year term. OMTS Non-Consent Calendar No items considered. 13. PLANNING, DESIGN AND CONSTRUCTION COMMITTEE (PDC) PDC Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Planning, Design and Construction Committee Minutes for the meeting held on December 2, 2004 to be filed. b. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 2 to Secondary Treatment Facilities Process Upgrades at Plant No. 2, Job No. P2- 47-3, with Morrow-Meadows Corporation, authorizing an addition of$12,765, increasing the total contract amount to $4,930,668. C. MOVED, SECONDED AND DULY CARRIED: (1) Ratify Change Order No. 4 to Effluent Pump Station Annex, Job No. J-77, with J.F. Shea Construction, Inc., authorizing an addition of$174,549, increasing the total contract amount to $43,461,297; and (2) Approve out-of-country travel for two employees to Japan for the purpose of witnessing factory tests associated with pumps, variable frequency drives, and motors that will be installed at the new Effluent Pump Station Annex. d. MOVED, SECONDED AND DULY CARRIED: (1) Approve a budget amendment of$116,086, for Plant Nos. 1 and 2 Facilities Modifications for Odor Control, Job No. J-71-3, for a total budget of$3,760,596; and, (2) Ratify Change Order No. 3 for Plant Nos. 1 and 2 Facilities Modifications for Odor Control, Job No. J-71-3, with J.F. Shea Construction, Inc., authorizing an addition of$116,086, increasing the total contract amount to $2,223,883. e. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 9 for Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35- Minutes for Board Meeting Page 7 P 12/15/04 2, with J.F. Shea Construction, Inc., authorizing an addition of$527,005, increasing the total contract amount to $15,976,454. f. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 16 to Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37, with Margate Construction, authorizing a deduction of$160,121, decreasing the total contract amount to $71,217,259. g. MOVED, SECONDED AND DULY CARRIED: Ratify invoices rendered under an expired Professional Services Agreement with MDS Consulting for Surveying Services, Specification No. PSA-2001-34BD, for an amount not to exceed $55,000. h. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 11 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, with Steve P. Rados, Inc., authorizing a time extension of 49 calendar days, increasing the total contract duration to 607 calendar days. i. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 12 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, with Steve P. Rados, Inc., authorizing a time extension of 27 calendar days, increasing the total contract duration to 634 calendar days. j. MOVED, SECONDED AND DULY CARRIED: Approve a budget amendment for Activated Sludge Plant Rehabilitation, Job No. P1-82, in the amount of $5,559,000, for a total project budget of$50,128,000. k. MOVED, SECONDED AND DULY CARRIED: (1)Approve budget amendment for Standby Power and Reliability Improvements, Job No. J-33-1A in the amount of$676,000, for a total budget of$18,319,000; and, (2) Ratify Change Order No. 5 to Standby Power and Reliability Improvements, Job No. J-33-1A, with Southern Contracting Company, authorizing an addition of $931,410 and an addition of 545 calendar days, increasing the contract amount to $7,634,611. I. MOVED, SECONDED AND DULY CARRIED: (1)Approve a budget increase of $37,144,000 for Headworks Improvements at Plant No. 2, Job No. P2-66, for a total budget of$266,380,941; (2) Approve a budget transfer of$6,900,000 from Trickling Filters at Plant No. 2, Job No. P2-90, increasing the total project budget to $273,280,941; and, (3) Approve a budget transfer of$580,000 from Newport Trunk Sewer and Force Mains and Bitter Point Pump Station to Coast Trunk Sewer, Job No. 5-58, increasing the total project budget to $273,860,941. M. MOVED, SECONDED AND DULY CARRIED: (1)Approve time extensions to Cooperative Projects Grant Program Contract Nos. 0102 and 0203 with the City of Buena Park; and, Minutes for Board Meeting Page 8 12/15/04 (2) Approve $35,000 FY 04/05 funding for the flow monitoring and data analysis project proposed by the City of Buena Park. n. MOVED, SECONDED AND DULY CARRIED: Authorize the General Manager to enter into a sole source three-year, one-year renewable blanket purchase order agreement with OCB Reprographics, Inc., for Reproduction of Plans, Photocopying and Related Services, for an annual amount not to exceed $225,000. PDC Non-Consent Calendar No items considered. 14. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (FAHR) FAHR Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Finance, Administration and Human Resources Committee Minutes for the meeting held on December 8, 2004 to be filed. b. MOVED, SECONDED AND DULY CARRIED: Receive and file Treasurer's Report for the month of November 2004. C. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 04- 30, amending Resolution No. OCSD 98-33, amending Human Resources Policies and Procedures Manual. d. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 04- 31, amending Resolution No. OCSD 98-33, amending Human Resources Policies and Procedures Manual re specific IT related policies. e. MOVED, SECONDED AND DULY CARRIED:. Approve a one-time only non- base building payment for the Director of Technical Services in an amount not to exceed $3,480 for his service as Acting General Manager. FAHR Non-Consent Calendar No items considered. 15. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order Joint Groundwater Replenishment System Cooperative Committee Minutes for the meetings held on November 8, 2004 to be filed. I Minutes for Board Meeting Page 9 12/15/04 P b. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 5 to the Professional Services Agreement with Montgomery Watson Harza, providing for additional construction management services for the Groundwater Replenishment System, Job No. J-36, for an additional amount of$214,162, increasing the total amount not to exceed $13,573,246 to be equally shared with the Orange County Water District. GWRSSC Non-Consent Calendar No items considered. NON-CONSENT CALENDAR 16. MOVED, SECONDED AND DULY CARRIED: Reject bid from J & W Construction Specialties for Hydrogen Peroxide Facility Modifications, Job No. FE02-08, for non- compliance with the District's insurance requirements and approval the General Manager's award of the bid to the second lowest bidder, J.R. Filanc Construction Company in the amount of$93,724.00. 17. CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.9 AND 54956.8: The Board convened in closed session at 7:44 p.m. pursuant to Government Code Sections 56956.9 and 54956.8. Confidential minutes of the Closed Session held by the Board of Directors have been prepared in accordance with California Government Code Section 54957.2 and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. No reportable actions were taken re Agenda Item Nos. 19(a)(1), (2,) (3) and (4). RECONVENE IN REGULAR SESSION: At 8:32 p.m., the Board reconvened in regular session. ADJOURNMENT: The Chair declared the meeting adjourned at 8:32 p.m. in memory of Richard B. Edgar, former Chair and Director of County Sanitation Districts of Orange County. Penny M. K e Secretary to the Board f Directors of Orange County Sanitation District HAdeptlagenda\Board Minutes12004 Board Minutes1121504 minutes.doc Claims Paid From 11/01/04 to 11/15104 Warrant No. Vendor Amount Description Accounts Payable-Warrants 66392 Abatbc Environmental Corp. $ 448.78 Hardware 66393 Advance Business Graphics 110.29 Printing Services-Business Cards&Stationery 66394 Agilent Technologies, Inc. 319.00 Lab Parts&Supplies 66395 Air&Waste Management Assoc. 150.00 Membership 66398 Airgas Safety,Inc. 376.44 Safety Supplies 66397 Alhambra Foundry Co.,Ltd. 6,174.08 Manhole Frames&Covers 66398 American Airlines 2,479.50 Travel Services 66399 American Industrial Hygiene Association 166.00 Membership 66400 American Society For Microbiology 153.00 Membership 68401 American Water Works Assoc.lWater Quality 98.50 Membership 66402 David Andrade 90.00 Meeting/Training Expense Reimbursement 66403 Aquatic Bioassay And Consulting Labs, Inc. 1,960.00 Toxicity Testing 66404 Association of Energy Engineers 45.00 Membership 66405 ARK Technologies 10,336.00 Programming Services 66406 AT&T Wireless Services 3,002.07 Wireless Phone Services 66407 AWSI 90.08 Department of Transportation Program Management&Testing 68408 Bar Tech Telecom, Inc. 3,244.04 Telephone Equipment Maint.&Service 66409 Basler Electric 2,400.00 Training Registration 66410 Battery Specialties 273.08 Batteries 66411 Bee Man Pest Control, Inc. 150.00 Pest Control 66412 Boyle Engineering Corporation 15,333.29 Engineering Services 1-2-4 66413 Brenner-Fiedler&Assoc, Inc. 189.90 Instrument Parts&Supplies 66414 BNI Building News 81.20 Publication 66415 Caltrol, Inc. 3,625.33 Electrical Parts&Supplies 66418 Martin Boyer Co., Inc.c/o Cambridge 6,625.00 Prof.Services-Workers'Compensation Claims 66417 Carl Warren&Co. 300.00 Insurance Claims Administrator 66418 Ce112Ce1I 52.09 Phones&Accessories 66419 Coast Fire Equipment 383.12 Fire Extinguishers 66420 Cole-Pamler Instrument Company 3.072.68 Instrument Parts&Supplies 66421 Columbia Analytical Services, Inc. 270.00 Analysis of Biosolkts and Wastewater 66422 Communications Performance Group, Inc. 12,161.76 Prof.Servs.-Emergency Response Plan&Hazardous Energy Control Procedures 66423 Compressor Components of California 5,301.30 Check Valves 66424 Computer Protection Technology, Inc. 460.00 Computer Maint.Agreement 66425 Con-Way Western Express 302.98 Freight Services 66426 Consolidated Elect. Distributors, Inc. 620.22 Electrical Supplies 66427 Consumers Pipe&Supply Co. 175.70 Plumbing Supplies 66428 Cooper Cameron Corporation 6,264.76 Engine Supplies 66429 Corporate Express 3,487.32 Office Supplies 66430 Counterpart Enterprises, Inc. 1,583.14 Mechanical Parts&Supplies 66431 County Wholesale Electric Co. 339.24 Electrical Parts&Supplies 66432 Culligan of Orange County 40.00 Maint.Agreement-Con Gen Water Softener System 66433 CDW Govemment, Inc. 553.58 Electrical Parts&Supplies 66434 CEPA Company 125.00 Lab Fume Hood&Blohazard Hood Certifications 66435 CH2MHill 2,765.10 Professional Services J-40-7 68436 CR&R, Inc. 2,835.00 Container Rentals 66437 CRG Marine Laboratories,Inc. 5,175.00 Lab Analysis H:ldeptlfinlEXCEL.dfa=IAPSHARE1CWma Paid ReportW-04lClalms Paid Report-111504.X18 EXHIBIT A air?inn, Pace 1 of iiiznnnne Claims Paid From 11/01104 to 11115104 Warrant No. Vendor Amount Description 66438 CSMFO 100.00 Membership 66439 CWCI-California Workers'Compensation 199.25 Publications 66440 CWEA Membership 97.00 Membership-Calif.Water Environment Assoc. 66441 Dapper Tire Co. 357.42 Truck Tires 66442 David's Tree Service 4,365.00 Tree Maint.Service 66443 Davis Inotek Instruments,L.L.C. 116.00 Instrument Calibration Service 66444 Del Mar Analytical 1,046.00 Analysis of Biosolids and Wastewater 66445 Dharma Consulting 15,000.00 Professional Services-Strategic Planning&EMT Development 66446 Dickson's, Inc. 668.05 Electrical Supplies 66447 Dionex Corporation 343.54 Lab Parts&Supplies 66448 Dwyer Instruments, Inc. 398.06 Instrument Parts&Supplies 66449 E.Sam Jones Distributors, Inc. 45.26 Electrical Supplies 66450 Edinger Medical Group, Inc. 1,400.00 Medical Screenings 66451 Employee Benefits Specialists, Inc. 786.85 Reimbursed Prepaid Employee Mod.&Dep.Care and Postage Fees for Status Letters 66452 Enchanter, Inc. 6,300.00 Ocean Monitoring&Outfall Inspection&Maintenance 66453 ENS Resources, Inc. 10,000.00 Professional Services-Legislative Advocate 66454 Fisher Scientific 8,184.80 Lab Parts&Supplies 66455 Fluor Enterprises, Inc. 8,488.24 Electrical Equipment Refurbishment&Protection SP-81 66456 Fountain Valley Paints, Inc. 153.38 Paint Supplies 66457 Franklin Covey 745.30 Office Supplies 66458 Fred C.Gilbert Co. 792.43 Pump Supplies 66459 Fry's Electronics 1,089.02 Computer Supplies 66460 Full Spectrum Analytics, Inc. 600.00 Lab Instrument Service 66461 City of Fullerton 231.43 Water Use 66462 G. E.Supply 5,836.48 Electrical Parts&Supplies 66463 Ganahl Lumber Company 674.10 Lumber/Hardware 66464 Garratt-Callahan Company 3.662.43 Chemicals 66465 George T.Hall 157.58 Electrical Supplies 66486 Gerhardt's, Inc. 7,840.75 Engine Supplies 66467 Getinge Castle 418.52 Lab Supplies 66468 Gieriich-Mitchell,Inc. 5,784.12 Mechanical Parts&Supplies 66469 Global Environmental Network, Inc. 559.00 Training Registration 66470 Goldenwest Window Service 550.00 Ceiling Tile Clean-Up at Plant 2, Maintenance Bldg. 66471 Grainger, Inc. 440.06 Mechanical&Janitorial Supplies 66472 Graybar Electric Company 36.21 Electrical Parts&Supplies 66473 Great Western Sanitary Supplies 33.36 Janitorial Supplies 66474 GHD, L.L.C. 2,780.00 On-Site Training-Advanced Asset Management 66475 Hach do Ponton Industries 1,540.89 Lab Parts&Supplies 66476 Harold Primrose Ice 111.00 Ice For Samples 66477 Harrington Ind. Plastics 1,077.50 Chemically Compatible Hoses 66478 Harrington Industrial Plastics, Inc. 2,086.34 Mechanical Parts&Supplies 66479 Hasco Oil Co., Inc. 200.18 Lube Oil 66480 Herb's Blackforest Bakery&Deli 14.00 Meeting Expenses 66481 Home Depot 766.62 Misc. Repair&Maintenance Material 66482 Tim H. Hopkins 90.00 Meeting/Training Expense Reimbursement 66483 Hub Auto Supply 685.18 Vehicle Parts&Supplies 66484 Hydrotex 1,042.16 Torque Fluid H:ldeptlfinlEXCEL.dla=GtAPSHARE%CWffm Paid Report103.041CW=Paid Report-111504-As EXHIBIT A n,.rotnn, Paae 2 of A ++i-milA7A Claims Paid From 11/01/04 to 11/15/04 Warrant No. Vendor Amount Description 66485 Idexx 5.344.40 Lab Parts&Supplies 66486 Impulse 344.27 Instrument Parts&Supplies 66487 Industrial Distribution Group 1,467.60 Mechanical Parts&Supplies 66488 Industrial Metal Supply 634.10 Metal 66489 Industrial Threaded Products, Inc. 969.29 Mechanical Parts&Supplies 66490 Infilco Degremont, Inc. 5,534.96 Brake Motor&Parts 66491 Inorganic Ventures, Inc. 315.26 Lab Parts&Supplies 66492 Intergraph Corporation 6,296.91 Software Maint.Agreement 66493 IBM Corporation 5,186.43 Maintenance Agreement AS-400 66494 Interocean Systems, Inc. 995.41 Port Supplies 66495 Interstate Batteries of Cal Coast 446.78 Batteries for Vehicles&Carts 66406 Iron Mountain Off-Site Data Protection 234.00 Offsite Back-Up Tape Storage for NT Server 66497 Isco, Inc. 445.27 Mechanical Parts&Supplies 66498 J&B Auto Parts 298.08 Auto Parts&Supplies 66499 Jamison Engineering Contractors, Inc. 9.500.00 Motor Replacement 66500 Johnstone Supply 469.16 Mechanical Parts&Supplies 66501 K.P. Lindstrom, Inc. 3,751.00 Environmental Consulting Services MO 12-9-90 66502 Karcher Insulation, Inc. 4,519.00 Repairs&Maintenance Service-Insulation 66503 League of California Cities 75.00 Safety&Health Division Meeting Registration 66504 Lehigh Valley Safety Supply Co., Inc. 2,670.03 Mobile Safety Shoe Service 66505 Lucci's Gourmet Foods,Inc. 1.751.55 Meeting Expense 66506 LINJER 4,987.01 Professional Service-DART MO 9-22-99 66507 Maintenance Technology Corp 541.44 Welding Supplies 66508 McKenna Engineering&Equipment Co., Inc. 276.32 Filters 66509 McMaster-Carr Supply Co. 4,364.19 Mechanical&Safety Supplies 66510 McRay Industries, Inc. 4,406,98 Mechanical Parts&Supplies 66511 Measurement Variables, Inc. 659.97 Electrical Supplies 66512 Medlin Controls Co. 434.98 Instrument Supplies 66513 Milltronics, Inc. 814.59 Valves 66514 John Mirkovich 46.00 Meeting/Training Expense Reimbursement 68515 Mitchell Instrument Co. 471.53 Lab Parts&Supplies 66516 MCR Technologies, Inc. 809.92 Calibration&Certification Services 66517 MDS Consulting 19,207.50 Prof.Services-Surveying Various Capital Projects 66518 Mine Safety Appliances Company 1,393.37 Instrument Parts&Supplies 66519 National Plant Services, Inc. 2,875.00 Vacuum Truck Services 66520 Neal Supply Co. 15.41 Plumbing Supplies 66521 NetIQ Corporation 630.00 Software 66522 Neutronic Stamping&Plating 140.90 Reconciliation User Fee Refund Check Reissue 66523 Now Dimension Solutions, Inc. 4,000.00 Training Registration 66524 Newark Electronics 1,454.88 Electrical Parts&Supplies 66525 Ninyo&Moore Corporate Accounting 13,673.25 Professional Services-Materials Testing, Inspection&Geotechnical Engrg. 66526 The Norco Companies 178.88 Mail Delivery Service 66527 Nu-Way Laser Engraving 553.83 Steel Tags 66528 Office Depot Business Services Div. 1,313.78 Office Supplies 66529 Omega Industrial Supply Inc. 1,620.80 Janitorial Supplies 66530 OneSoume Distributors, Inc. 3,138.22 Electrical Parts&Supplies 66531 Oracle Corp. 728.62 Software Support H:%deptlfin%EXCEL.dfa=%APSHARE%CINms Part RepodW3-04%CIn1rtta Paid Report-111504.)ds EXHIBIT A wwninn. Parse 3 of 9 11MAIInna Claims Paid From 11101104 to 11/16/04 Warrant No. Vendor Amount Description 66532 Orange County Vector Control District 644.63 Pest Control 66533 Orange Fluid System Technologies, Inc. 546.99 Plumbing Parts&Supplies 66534 Osterbauer Compressor 1,212.07 Mechanical Parts&Supplies 66535 Oxygen Service Company 3,152.65 Specialty Gases 66536 P.L. Hawn Company, Inc. 30.77 Electrical Supplies 66537 Parker Supply Company 2,110.61 Mechanical Parts&Supplies 66538 Perkin Elmer Corporation 1,150.72 Lab Parts&Supplies 66539 Petroleum Engineering, Inc. 945.00 Spill Bucket 66540 Pi xelpushers, Inc. 5,630.00 Prof.Serv.-Design, Implement,Construct&Install a Corporate Intranet Site 66541 Ponton Industries, Inc. 266.23 Instrument Parts&Supplies 66542 Primavera Systems, Inc. 9,486.31 Software Maint. 66543 PdnterGuy 2,345.54 Printer Maintenance 66544 Profit Techniques, Inc. 500.00 Professional Services-O&M Manager Coaching 66545 Prudential Overall Supply 2,438.33 Uniforms 66546 Pump Engineering 3,080.15 Pump Supplies 66547 PAC(Petroleum Analyzer Company, L.P.) 592.63 Instrument Parts&Supplies 66548 PCG Industries 900.00 Repairs&Maint.Service-Shaft Seals 66549 PCS Express, Inc. 244.00 Courier Service 66550 R. L.Abbott&Associates 3,000.00 Kem County Biosolids Consulting Services 66551 Red Wing Shoes 347.39 Safety Shoes 66552 Restek Corporation 479.95 Lab Parts&Supplies 66553 Retrofit Parts&Components,Inc. 742.47 Mechanical Parts&Supplies 66554 Ryan Hero Products Corp. 52.97 Plumbing Parts&Supplies 66555 RPM Electric Motors 1,923.18 Repair&Maintenance Service 66556 RS Hughes Co,Inc. 284.95 Paint Supplies 66557 RTM Lighting&Electronics, Inc. 530.07 Electrical Parts&Supplies 66558 Safety-Kleen 533.36 Parts Washer Lease&Service 66559 Darren J.Schuler 90.00 MeetinglTraining Expense Reimbursement 66560 SchwingAmerica, Inc. 7,220.28 Pump Supplies 66561 Scottel Voice&Data, Inc. 2,284.80 Telephone System Maintenance 66562 Seaventures 5.590.00 Ocean Monitoring Vessel Services 66563 Sewer Equipment Company of America 1.357.51 Sewer Hose 66564 Shureluck Sales&Engineering 1,788.76 Mechanical Parts&Supplies 66565 Skalar, Inc. 1,413.68 Lab Parts&Supplies 66566 SkillPath Seminars 199.00 Training Registration 66567 Skookum 296.85 Pori Supplies&Equipment 66568 Smith Pipe&Supply,Inc. 609.20 Plumbing Supplies 66569 South Coast Air Quality Management Dist. 909.34 Annual Emission,Operation&Misc. Fees 66570 Southwest Air Balance Corp. 1,251.83 Professional Services P1-37 66571 Spex Certiprep,Inc. 128.11 Lab Parts&Supplies 66572 Summit Steel 1,708.80 Metal 66573 Sunset Ford 185.47 Auto Parts&Service 66574 Sunset Industrial Parts 1.108.44 Mechanical Supplies 66575 Sy Nielson Service, Inc. 9W.00 Lab Equipment Calibration&Balance Services 66576 Systems Source, Inc. 2,187.30 Ergonomic Office Furniture&Fixtures 66577 SARBS 270.00 Training Registration 66578 SC Fuels 22,975-78 Diesel Fuel H:%deptiinlEXCEL.dfa%220%APSHARE%CInims Patel Repad103-041CIalrs Paid Report-111504x1s EXHIBIT A nnnlrtm Paae 4 of 0 11mmfle Claims Paid From 11101104 to 11/15/04 Warrant No. Vendor Amount Description 66579 SETAC 145.00 Membership 66580 SPEC Services, Inc. 16,045.40 Engineering Services J-33-1A 66581 SPX Valves&Control 1,698.84 Actuator 66582 Tasco Pacific Fire Protection 3,081.32 Annual Fire Sprinkler Inspection, Malnt.&Cert.at Pits 1 &2;Repair Pit. 1 Fire Door 66583 Teletrac Inc. 245.00 Monthly Alr-Time Service Fee&Software/Hardware Maint.for Vehicle Tracking Sys. 66584 Terminbk Intemational 835.00 Pest Control 66585 The JG Press, Inc. 129.00 Subscription 66586 Thompson Industrial Supply, Inc. 4,844.86 Mechanical Parts&Supplies 66587 ThyssenKrupp Elevator Corporation 1,280.00 Elevator Maintenance 66588 Tony's Lock&Safe Service&Sales 10.78 Locks&Keys 66589 Transcat 2,272.55 Electrical Supplies&Tools 86590 Trimble Navigation,Ltd. 1,934.11 Computer Software/Hardware 66591 Tropical Plaza Nursery, Inc. 830.00 Contract Groundskeeping MO 5-11-94 66592 Truck&Auto Supply,Inc. 209.15 Automotive Supplies 86593 U.S Postal Service(AMS-TMS) 5,000.00 Postage 66594 Ultra Scientific 345.13 Lab Supplies 66595 Univar USA 1,036.48 Chlorine 66596 Universal Specialties, Inc. 3,025.62 Faucets 66597 Valin Corporation 593.79 Mechanical Parts&Supplies 66598 Varian, Inc. 5.410.45 Lab Parts&Supplies 66599 Verve's Plumbing 125.00 Service Contract-Testing&Carl. Backfiow Devices at Pits. 1 &2&Pump Sta. 66600 Vortex Corp. 1,029.95 Maintenance Agreement-Plant 2 Roll-Up Doors 66601 VWR Scientific Products 2,188.09 Lab Parts&Supplies 66602 The Wackenhut Corporation 6,092.58 Security Guards 66603 Water 3 Engineering,Inc. 2,615.04 Engineering Services J-67 66604 Waxie Sanitary Supply 143.66 Janitorial Supplies 66605 West Coast Switchgear, Inc. 500.00 Electrical Parts&Supplies 66606 West-Lite Supply Company, Inc. 7,527.60 Electrical Parts&Supplies 66607 Weston Solutions, Inc. 8,725.00 Toxicity Analyses 66608 Xerox Corporation 5,694.69 Copier Leases&Maintenance 66WO Yale/Chase Materials Handling,Inc. 453.30 Automotive Parts 66610 Paulus Engineering, Inc. 18,357.66 Construction 5-22-Rl 66611 Patrick B.Camahan 116.82 Meeting/Tralning Expense Reimbursement 66612 Leandro P.Catacutan 677.29 Meeting/Tralning Expense Reimbursement 66613 Kimberly C.Christensen 288.44 Meeting/Tralning Expense Reimbursement 66614 James E.Colston 272.43 Meeting/Training Expense Reimbursement 66615 Voided Check - - 66616 David R. Heinz 379.34 Meeting/Training Expense Reimbursement 66617 John Kavoklis 289.34 Meeting/Training Expense Reimbursement 66618 J€n H.Kim 516.60 Meeting/Training Expense Reimbursement 66619 Efren G.Lucena 738.75 Meeting/Training Expense Reimbursement 66620 Charles D.McGee 336.67 Meeting/Tralning Expense Reimbursement 66621 Roland T. McReynolds 1,302.55 Meeting/Tralning Expense Reimbursement 66622 Michael D.Moore 622.52 Meeting/Training Expense Reimbursement 66623 Fred J.O'Brien 1,305.20 Meeting/Training Expense Reimbursement 66624 Balachandra P. Rao 250.00 Meeting/Training Expense Reimbursement 68625 Wendy T.Sevenandt 384.22 Meeting/Training Expense Reimbursement H:ldeptlfEn%EXCEL.dla1220%APSHARE%Oairtts Paid ReperIM-041CWms Pald Repod-111504.x1a EXHIBIT A tiRi,34rtn� Pace 5 of 9 14MM-2nne Claims Paid From 11/01/04 to 11115/04 Warrant No. Vendor Amount Description 66626 Matthew P.Smith 1,406.50 Meeting/Training Expense Reimbursement 66627 Simon L.Watson 897.95 Meeting/Training Expense Reimbursement 66628 Emest N.Yeboah 684.69 Meeting/Training Expense Reimbursement 66629 Halff Associates, Inc. 6,467.54 Legal Services 1-2-4 66630 Knott's Berry Farm 2,858.00 Employee Deposit Transfer 66631 Orange County Sanitation District 1,353.27 Petty Cash Reimb. 66632 Basic Chemical Solutions, L.L.C. 27,651.35 Sodium Bisulfite&Sodium Hydroxide 66633 Black&Veatch Corporation 525,381.60 Engineering Services P1-76&P1-102 66634 Brown&Caldwell 68,909,71 Professional Services P1-37&2-41 66635 Carollo Engineers 186,208.73 Professional Services P2-68 66636 IPMC clo Parsons 882,975.00 Professional Services-Integrated Program Management 66637 J R Filanc Construction 52,721.91 Repair&Maint.Serv.-Packing Media Replacement-Scrubbers 5,6,8,D1, D2&D3 66638 JPL Compressor Service, Inc. 132,393.52 Repair&Maint.Serv.-Overhaul Gas Compressors 1 &2 at Pit. 1;and 1,2&3 at Pit.2 66639 Kemiron Companies, Inc. 109,308.06 Ferric Chloride MO 9-27-95 66640 Malcolm Pimle, Inc. 219.823.00 Professional Services P2-80 66641 Orange County Water District 2,236,311.47 Joint GWRS Project J-36 66642 Pacific Investment Management Co. 176,071.00 Investment Management Service Res.95-97 6W43 Pioneer Americas, Inc. 198,027.75 Sodium Hypochlorite 66644 Poiydyne, Inc. 34,532.22 Cationic Polymer MO 3-11-92 66645 Sancon Engineering, Inc. 139,420.00 Construction-Manhole Rehabilitation Program 66646 Science Applications International 79,769.60 Ocean Monitoring MO 6-8-94 66647 Tula Ranch/Magan Farms 175,694.69 Residuals Removal MO 3-29-95 66648 U.S.Metro Group, Inc. 26.785.00 Janitorial&Floor Maintenance at Plants 1 &2 66649 U.S.Peroxide,L.L.C_ 41,389.08 Hydrogen Peroxide 66650 Waste Markets Corp. 30,584.42 Maint.Agreement-Grit&Screenings Removal&Digester Bed Mat'l.Removal 66651 ARB, Inc. 850,789.43 Construction 7-39&7-41 6W52 Dalke&Sons Constructions, Inc. 44,280.45 Construction J-89 66653 DenBoer Engineering&Construction 54,595.62 Construction SP-74 66654 J F Shea Construction, Inc. 186,751.94 Construction J-71-3 68655 Paulus Engineering, Inc. 57,643.41 Construction 5-22-RI 66656 Steve P Rados, Inc. 340,942.50 Construction 1-2-4 66657 Union Bank of California 37,882.50 Construction 1-2-4,Retention 68658 Union Bank of California 94,532.16 Construction 7-41, Retention 66659 IPMC clo Parsons 32,554.00 Professional Services-Integrated Program Management 66660 Brown&Caldwell 860.21 Professional Services 2-41 66661 Consolidated Elect. Distributors 1,834.06 Electrical Parts&Supplies 66662 Dwyer Instruments, Inc. 285.52 Electrical Parts&Supplies 66663 Industrial Distribution Group 674.18 Mechanical Parts,Supplies&Locks 66664 Omnimark Instrument Corp 94.64 Lab Parts&Supplies 66665 Sunset Ford 25.17 Auto Parts&Supplies 86668 SPX Valves&Control 79.20 Freight Charges 66667 Orange County Sanitation District 1,174.28 Petty Cash Reimb. 66668 CH2MHIII 59,959.45 Professional Services J-40-6 66669 Air-Sea Forwarders, Inc. 3,493.26 Shipping&Handling-Zander Foam Media 66670 Air Products&Chemicals 27,267.39 O&M Agreement Oxy Gen Sys MO 8-8-89 66671 Occidental Energy Marketing, Inc. 136,722.80 Natural Gas 66672 Orange County Water District 82,411.39 GAP Water Use H:%deptlfin%EXCEL.dla%2201APSHARBCIaIms Paid ReportW3-04%Claime Paid Report-111504.x1a EXHIBIT A n„n+nn. Pace 6 of 9 iinntjMd Claims Paid From 11101104 to 11/15104 Warrant No. Vendor Amount Description 66673 RemedyTemp, Inc. 29,100.84 Temporary Employment Services 66674 Southem California Edison 75.890.97 Power 66675 The Vantage Group, L.L.C. 25.720.00 Temporary Employment Services 66676 Orange County Sanitation District 36,974.15 Worker's Comp.Reimb. 66677 Accounting Options, Inc. 23.038.54 Temporary Employment Services 66678 Alrgas Safety, Inc. 5,763.51 Safety Supplies 66679 American Telephone&Telegraph Corp. 178.74 Telephone Service 66680 BMC:Business Machines Consultants, Inc. 16.083.34 Multifunctional Copier/Scanners with Stapler/Stackers&Maintenance 66681 Casual Gourmet 232.09 MeetingfTraining Expense 66682 City of Tustin 221.85 Water Use 66683 Coastal Marine Surveying&Consulting 627.00 Prof.Serv.-Insurance Valuation Survey&Report Re OCSD Monitoring Vessel 66684 Court Order 150.00 Wage Garnishment 66685 Compressor Components Of Califomia 2,793.91 Repair&Maintenance Service 66686 Consumers Pipe&Supply Co. 2,130.39 Plumbing Supplies 66687 County of Orange-Auditor Controller 182.14 Wage Gamishment 66688 County of Orange-Auditor Controller 35.00 Encroachment Permit 11-22 66689 County of Orange-Auditor Controller 1,015.00 Encroachment Permit 7-39 66690 Court Trustee 69.12 Wage Garnishment 66691 CSI Computational Systems 839.85 Truck Paris&Supplies 68692 Department of Child Support Services 188.50 Wage Gamishment 66693 Doug Harwood Supply 796.49 Stamp Machine Repairs 66694 Driver Alliant Insurance Service,Inc. 23,235.00 Insurance Premium-Watercraft Pollution 66695 Employee Benefits Specialists, Inc. 9,717.38 Reimbursed Prepaid Employee Medical&Dependent Care 68696 Court Order 445.00 Wage Garnishment 68697 Electrical Reliability Services, Inc. 2,300.00 On-Site Transformer Testing 68698 FedEx Corporation 12.63 Freight Services 68699 Franchise Tax Board 100.00 Wage Garnishment 66700 Galls Incorporated 37.15 Safety Supplies 66701 Hagemeyer North America 3,636.54 Prescription Safety Glasses 66702 City of Huntington Beach 16,949.90 Water Use 66703 Internal Revenue Service 300.00 Wage Garnishment 66704 Internal Revenue Service 200.00 Wage Garnishment 66705 IBM Corporation 90.75 Maintenance Agreement AS-400 66706 Intl. Union of Oper.Eng AFL-CIO Local 501 3,885.86 Dues Deduction 66707 Irvine Ranch Water District 7.80 Water Use 66708 IECOC 55.00 Source Control Division Meeting Registration 66709 J&B Auto Parts 660.04 Auto Parts&Supplies 66710 Johnstone Supply 374.56 Water Heater&Tools 68711 Kforce, Inc. 21,070.08 Temporary Employment Services 66712 League Of CA Cities-Remit Addr. 25.00 Communications Division Meeting Registration 66713 Los Angeles County 1,172.50 Sewer Service Conn.Agreement MO 9123/98 66714 LRP Publications 407.50 Books&Publications 68715 McMaster-Carr Supply Co. 2.976.79 Mechanical Parts,Supplies,Tools&American Flags 66716 Court Omer 225.00 Wage Garnishment 66717 Motion Industries, Inc.CA 55 1,418.50 Hose Kits 86718 National Bond&Trust 2.462.28 U.S.Savings Bonds Payroll Deductions 66719 National Plant Services, Inc. 5,530.80 Vacuum Truck Services H:ldeptlfnlEXCEL.dta%2201APSHARE%Claims Pald RepoAW3-04%Claima Paid Report-111504.xls EXHIBIT A r.Mlnn.. Pace 7 of 9 i innonne Claims Paid From 11/01104 to 11/15/04 Warrant No. Vendor Amount Description 66720 City of Newport Beach 72.42 Water Use 66721 Nextel Communications 1,078.09 Cellular Phones&Air Time 66722 NATEC International, Inc. 85.00 Training Registration 66723 O C Tanner Recognition Company 965.12 Employee Service Awards Program 66724 Orange Fluid System Technologies, Inc. 570.81 Plumbing Parts&Supplies 66725 Oxygen Service Company 108.30 Specialty Gases 66726 OCEA 626.36 Dues Deduction 66727 Parker Hannifin Corporation 268.44 Mechanical Parts&Supplies 66728 Court Order 296.00 Wage Garnishment 66729 Peace Officers Council of CA 1,611.00 Dues Deduction 66730 Roberto's Auto Trim Shop 193.16 Repairs&Maintenance Services-Admin Patio Cloth Umbrellas 66731 Shureluck Sales&Engineering 855.50 Mechanical Parts&Supplies 66732 Court Order 721.50 Wage Garnishment 66733 So.C21.Gas Company 23,259.35 Natural Gas 66734 Southern California Water 96.50 Water Use 66735 SBC 2,544.76 Telephone Services 66736 SBC Long Distance 293.13 Long Distance Telephone Services 66737 Thompson Industrial Supply, Inc. 4,197.49 Mechanical Supplies 66738 Teksystems 20,899.00 Temporary Employment Services 66739 Ultra Scientific 195.83 Lab Parts&Supplies 66740 The Unisource Corporation 501.72 Office Supplies 66741 United Parcel Service 64.66 Parcel Services 66742 United Way 245.00 Employee Contributions 66743 Urban Aitematives 2,056.00 Community Outreach Consulting&Support 1-10 66744 Verizon California 814.54 Telephone Services 66745 WEF 139.00 Membership-Water Environment Federation 66746 Xerox Corporation 353.23 Copier Leases 66747 Xyon Business Solutions, Inc. 11,592.00 Temporary Employment Services 66748 Court Order 597.50 Wage Garnishment 66749 Layne T. Baroldi 180.70 Meeling/Training Expense Reimbursement 66750 Carla D. Dillon 407.00 Meeting/Training Expense Reimbursement 66751 Warren S.Hawkins 190.00 Meeting/Tr2ining Expense Reimbursement 66752 Linda Losurdo 100.70 MeetingfTraining Expense Reimbursement 66753 William M. Moline 170.00 Meeting/Training Expense Reimbursement 66754 Ernest N.Yeboah 474.60 Meetingfrraining Expense Reimbursement 68755 County of Orange-Auditor Controller 210.00 Administrative Processing Fee for Supplemental Sewer Fee Adjustments/Cancellations 66756 Dunmore, Frederick 2,082,78 Employee Computer Loan Program 66757 Employee Activity Committee 10,000.00 Service Award Expense 66758 GeomAlroc Consultants,Inc. 14,011.39 Legal Services 1-2-4 66759 Halff Associates, Inc. 7,546.28 Legal Services 1-2-4 66760 Miller,Tom 1,460.77 Employee Computer Loan Program 66761 PARMA 375.00 Accounting Division Meeting Registration&Membership 66762 SARBS 100.00 Plant No.2 Operations Division Meeting Registration 66763 Mini Mailers, Inc. 2,053.50 Mailings for CEQA&Public Outreach-Wastewater Treatment/Collection Sys. Program 66764 South Coast Air Quality Management Dist. 902.13 Filing Fee-Hearing Board Re Variance for OCSD Pits. 1&2 66765 South Coast Air Quality Management Dist. 902.13 Filing Fee-Hearing Board Re Variance for OCSD Pits. 1 &2 Total Accounts Payable-Warrants $ 8,335,9W.77 H:1dep11fin1EXCEL.dta1220WPSHARE%Clalma Paid Report103-041CIa1ma Paid Reparl-111504.x1a EXHIBIT A a..mim,. Pane 8 of 9 11MWI @re Claims Paid From 11/01/04 to 11115/04 Warrant No. Vendor Amount Description Payroll Disbursements 35821 -35926 Employee Paychecks $ 148.706.62 Biweekly Payroll 11/10/04 35927-35928 Employee Paychecks 361.70 Interim Payroll-Directors 11/10/04 104591 -105133 Direct Deposit Statements 1,042,861.93 Biweekly Payroll 11/10/04 Total Payroll Disbursements $ 1,191,930.25 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 652.531.20 Biweekly Payroll 11/10/04 Chase Manhattan Bank 71,993.63 Commitment Fee on Series 2000 Certificates of Participation(08/01/04-10/31/04) Lloyds TSB Bank plc 67,964.96 Ltr.of Credit Fee/Standby Agrmt. 1992 Certificates of Participation(08/01104-11/01/04) JP Morgan Chase Bank 58,451.68 October Interest Payment on Series 1993 Certificates of Participation JP Morgan Chase Bank 100,816.59 Societe Generale October Swap Payment on 1993 Series Certificates of Participation Total Wire Transfer Payments $ 951,758.06 Total Claims Paid 11/01/04-11115104 $ 10,479,642.08 H:%deptlfintEXCEL.dtnVM APSHARE%Claims Paid Report%03-041Clalms Paid Report-111504.x1s EXHIBIT A rt.nIrtm Pace 9 of 9 iinnnrtrtd Claims Paid From 11116/04 to 11130104 Warrant No. Vendor Amount Description Accounts Payable-Warrants 66766 American Express $ 29,219.82 Purchasing Care!Program,Misc.Supplies&Services 66767 ADS Environmental Services,Inc. 49,613.10 Professional Services J-73-2 66768 Black&Veatch Corporation 56,650.14 Engineering Services J-77&J-71-3 66769 Brown&Caldwell 106,484.73 Professional Services-CMOM-WDR Program 66770 Camp Dresser&McKee,Inc. 199,730.23 Engineering Services J-71-8 66771 Environmental Engineering&Contracting 28,000.00 Prof.Serv.-Comprehensive Industrial Wastewater Treatment Operator Training Course 66772 Hill Brothers 60,687.74 Chemicals-Odor&Corrosion Control-Newport Trunkline 66773 HDR Engineering, Inc. 234,072.04 Prof.Serv.-P1-82,P2-82,HVAC Repl.at Pit.2&Eng,Studies&Const.Design&Support 66774 Malcolm Pimie, Inc. 54,392.02 Professional Services J-79 66775 Mellon Trust 27,758.95 Investment Custodian Bank 66776 MWH Americas, Inc. 107,558.85 Professional Services P2-74 66777 P.L.Hawn Company,Inc. 26,221.11 Air Filters 66778 Parsons Water&Infrastructure,Inc. 48.469.41 Professional Services J-35-1 66779 Red Wing Shoes 26,812.24 Safety Shoes 66780 Synagro Technologies, Inc. 249,289.52 Residuals Removal MO 3-29-95 66781 SPEC Services, Inc. 36,636.15 Engineering Services SP-94 66782 Tula Ranch/Magan Farms 229,139.22 Residuals Removal MO 3-29-95 66783 U.S.Metro Group,Inc. 26,785.00 Janitorial&Floor Maintenance at Plants 1 &2 66784 U.S.Peroxide,L.L.C. 33.832.68 Odor&Corrosion Control Treatment for Coll.Sys.;Hydrogen Peroxide&Ferrous Chloride 66785 UBS Financial Services, Inc. 28,788.44 Remarketing Fee-Series 1993 Refunding Certificates of Participation 66786 J F Shea Construction, Inc. 1,629,998.14 Construction J-71-3,J-77,J-35-1&J-71-3 66787 J R Filanc Construction 2,153,763,00 Construction P1-76 66788 Margate Construction, Inc. 735,578.60 Construction Pi-37&J-67 66789 Morrow-Meadows Corp 217,701.00 Construction P2-47-3&Waste Sidestream Pump Sta.VFD Replacement 66790 Olsson Construction, Inc. 182.329.00 Construction 132-82 66791 Southern Contracting Company 85,910.00 Construction J-33-1A 66792 Torrey Pines Bank 239,307.00 Construction P1-76,Retention 66793 Air-Sea Forwarders,Inc. 4.408.29 Shipping&Handling-Zander Foam Media 66794 Airgas Safety,Inc. 15.64 Safety Supplies 66795 American Fildelity Assurance Company 254.90 Employee Cancer Insurance 66796 Analysts, Inc. 734.80 Oil Test Kit&Analyses 66797 Aquatic Bloassay And Consulting Labs, Inc. 1,095.00 Whole Effluent Toxicity Testing 66798 ARK Technologies 10,336.00 Programming Services 66799 American Telephone&Telegraph Corp. 555.99 Telephone Conference Services 66800 AT&T Universal Biller 2,374.05 Telephone Service 66801 AWSI 2,125.44 Department of Transportation Program Management&Testing 66802 BioMerieux Vitek, Inc. 162,70 Lab Supplies 66803 Bush&Associates, Inc. 5.652.00 Professional Services P1-76 66804 C.S.U.F. Foundation 11,079.50 Membership-Center for Demographic Research 66805 California Auto Collision 568.32 Vehicle Repair Service-V-403 66806 California Special Districts 25.00 Publication 66807 Carollo Engineers 14.799.86 Prof.Serv.-Coordinated Commercial Enterprise Study&132-60 66808 Cingular Wireless Airtime 11.173.43 Wireless Services 66809 City of Irvine 800.00 Permit Fee 7-21 66810 Columbia Analytical Services, Inc. 870.00 Analysis of Wastewater, Industrial Wastewater&Biosolids 66811 Compressor Components Of California 1,248.00 Repair&Maint Services-Ignition Coils H:WeptkfnlEXCEL.dta1220lAPSHARE%Clalms Pald Report103-041Clalms Pald Report-113004.xls EXHIBIT B n,.nlnn� Paae 1 of toIaronne Claims Paid From 11/18104 to 11130/04 Warrant No. Vendor Amount Description 66906 Valin Corporation 1,425.60 Electrical Parts&Supplies 66907 Varian, fnc. 2,689.52 Instrument Repairs&Maint. 66908 Verizon California 530.08 Telephone Services 66909 The Wackenhut Corporation 19,749.81 Security Guards 66910 Western States Control 981.91 Repair&Maintenance Material 66911 WEF 455.00 Membership-Water Environment Federation 66912 Zee Medical 1,459.15 First Aid Supplies 66913 California Bank&Trust 9,546.00 Construction J-33-1A, Retention 66914 Orange Community Bank 20,259.00 Construction P2-82, Retention 66915 Miriam Angold 321.46 Meeting/Training Expense Reimbursement 66916 Darrin L.Canen 271.97 Meet ingrrraining Expense Reimbursement 66917 Deon M.Carrico 323.13 Meeting/Training Expense Reimbursement 66918 Timothy D.Foley 244.22 Meeting/Training Expense Reimbursement 66919 James R. Harris 258.77 Meeting/Training Expense Reimbursement 66920 Deirdre E. Hunter 495.74 MeetingfTraining Expense Reimbursement 66921 Dustin Le 154.82 Meet inglrrainIng Expense Reimbursement 66922 Voided Check - - 66923 Tom B. Meregillano 561.04 Meeting/Training Expense Reimbursement 66924 Jamiann M.Quests 255.13 Meeting/Training Expense Reimbursement 66925 Michael Reideler 204.82 Meeting/Training Expense Reimbursement 66926 Christopher Tetzlaff 170.00 Meeting/Training Expense Reimbursement 66927 Mary S.Thompson 289.22 Meeting/Training Expense Reimbursement 66928 Jane H.Tran 268.97 Meetinglrraining Expense Reimbursement 66929 Orange County Sanitation District 758.33 Petty Cash Relmb. 66930 Johannesson,Chandra 370.00 Meeting/Training Expense Reimbursement 66931 City of Anaheim 74,573.80 Cooperative Projects Reimbursement Program 66932 Occidental Energy Marketing, Inc. 158,159.66 Natural Gas 66933 Southern California Edison 96,614.57 Power 66934 Xerox Corporation 39,575.10 Copier Leases 66935 AccuStandard 150.22 Lab Supplies 66936 Airgas Safety, Inc. 1,390.94 Safety Supplies 66937 Analysts, Inc. 444.40 Oil Analysis&Testing Kits 66938 American Telephone&Telegraph Corp. 781.94 Telephone Conference Services 66939 American Telephone&Telegraph Corp. 108.43 Telephone Service 66940 Bell Pipe&Supply Co. 314.95 Mechanical Parts&Supplies 66941 City of Fountain Valley 730.00 Fire Department Permit 66942 City of Tustin 82.26 Water Use 66943 Court Order 150.00 Wage Garnishment 66944 Consumers Pipe&Supply Co. 76.29 Plumbing Supplies 66M County of Orange 182.14 Wage Garnishment 66946 Court Trustee 454.49 Wage Garnishment 66947 Court Trustee 69.12 Wage Garnishment 66948 Dell Computer 6,687.83 (4)Dell Desktop Computers 66949 Department of Child Support Services 188.50 Wage Garnishment 66950 Employee Benefits Specialists, Inc. 9,653.38 Reimbursed Prepaid Employee Medical&Dependent Care 66951 Employment Development Dept. 4,237.00 State Unemployment Tax 66952 Court Order 445.00 Wage Garnishment H:1depbRn1EXCEL.dtat220WPSHARE1Claims PaW Report103-041Cia!ms Paid Report-113Q04.)ds EXHIBIT B f-f7inn' Pace 4 of 6 IWnnnne Claims Paid From 11118/04 to 11/30/04 Warrant No. Vendor Amount Description Accounts Payable-Warrants 66766 American Express $ 29,219.82 Purchasing Card Program,Misc.Supplies&Services 66767 ADS Environmental Services,Inc. 49,613.10 Professional Services J-73-2 66768 Black&Veatch Corporation 56,650.14 Engineering Services J-77&J-71-3 66769 Brown&Caldwell 106,484.73 Professional Services-CMOM-WDR Program 66770 Camp Dresser&McKee,Inc. 199,730.23 Engineering Services J-71-8 66771 Environmental Engineering&Contracting 28,000.00 Prof.Serv.-Comprehensive Industrial Wastewater Treatment Operator Training Course 66772 Hill Brothers 60,687.74 Chemicals-Odor&Corrosion Control-Newport Trunkline 66773 HDR Engineering, Inc. 234,072.04 Prof.Serv.-P1-82,P2-82,HVAC Repl.at Pit.2&Eng,Studies&Const.Design&Support 66774 Malcolm Pimie,Inc. 54,392.02 Professional Services J-79 66775 Mellon Trust 27,758.95 Investment Custodian Bank 66776 MWH Americas, Inc. 107,558.85 Professional Services 132-74 66777 P.L. Hawn Company, Inc. 26,221.11 Air Filters 66778 Parsons Water&Infrastructure,Inc. 48,469.41 Professional Services J-35-1 66779 Red Wing Shoes 26,812.24 Safety Shoes 66780 Synagro Technologies, Inc. 249.289.52 Residuals Removal MO 3-29-95 66781 SPEC Services, Inc. 36,636.15 Engineering Services SP-94 66782 Tule Ranch/Megan Fames 229,139.22 Residuals Removal MO 3-29-95 66783 U.S.Metro Group, Inc. 26,785.00 Janitorial&Floor Maintenance at Plants 1 &2 66784 U.S.Peroxide,L.L.C. 33,832.68 Odor&Corrosion Control Treatment for Coll.Sys.;Hydrogen Peroxide&Ferrous Chloride 66785 UBS Financial Services, Inc. 28,788.44 Remarketing Fee-Series 1993 Refunding Certificates of Participation 66786 J F Shea Construction, Inc. 1.629.998.14 Construction J-71-3,J-77,J-35-1&J-71-3 66787 J R Filanc Construction 2.153.763.00 Construction P1-76 66788 Margate Construction, Inc. 735.578.60 Construction P1-37&J-67 66789 Morrow-Meadows Corp 217,701.00 Construction 132-47-3&Waste Sidestream Pump Sta.VFD Replacement 66790 Olsson Construction, Inc. 182,329.00 Construction 132-82 66791 Southern Contracting Company 85,910.00 Construction J-33-1A 66792 Torrey Pines Bank 239,307.00 Construction 131-76,Retention 66793 Air-Sea Forwarders, Inc. 4,408.29 Shipping&Handling-Zander Foam Media 66794 Airgas Safety,Inc. 15.64 Safety Supplies 66795 American Fildelity Assurance Company 254.90 Employee Cancer Insurance 66796 Analysts, Inc. 734.80 Oil Test Kit&Analyses 66797 Aquatic Bloassay And Consulting Labs, Inc. 1,095.00 Whole Effluent Toxicity Testing 66798 ARK Technologies 10,336.00 Programming Services 66799 American Telephone&Telegraph Corp. 555.99 Telephone Conference Services 66800 AT&T Universal Biller 2,374.05 Telephone Service 66801 AWSI 2,125.44 Department of Transportation Program Management&Testing 66802 BioMerieux Vitek, Inc. 162.70 Lab Supplies 66803 Bush&Associates, Inc. 5,652.00 Professional Services P1-76 66804 C.S.U.F.Foundation 11,079.50 Membership-Center for Demographic Research 66805 California Auto Collision 568.32 Vehicle Repair Service-V-403 66806 California Special Districts 25.00 Publication 66807 Carollo Engineers 14,799.86 Prof.Serv.-Coordinated Commercial Enterprise Study&132-60 66808 Cingular Wireless Airtime 11,173.43 Wireless Services 66809 City of Irvine 800.00 Permit Fee 7-21 66810 Columbia Analytical Services, Inc. 870.00 Analysis of Wastewater, Industrial Wastewater&Biosolids 66811 Compressor Components Of California 1.248.00 Repair&Maint Services-Ignition Coils H:IdeptlRn%EXCEL.dta12201APSHARMtatms Pald ReporNKH 1Clalms Paid Report-113004.)ds EXHIBIT B n,.ntnnr Paae 1 Of 6 i9momd Claims Paid From 11116104 to 11/30/04 Warrant No. Vendor Amount Description 66812 Cooper Cameron Corporation 598.35 Engine Supplies 66813 Corporate Business Interiors 330.00 Human Resources Workstation Modifications 66814 Corporate Express 4,697.07 Office Supplies 66815 Corporate Image Maintenance, Inc. 160.00 Custodial Services Spec.No.9899-09 66816 County of Orange-Auditor Controller 239.00 Encroachment Permits 7-3 66817 County Wholesale Electric Co. 319.32 Electrical Parts&Supplies 66818 Cytec Industries,Inc. 18,191.70 Anionic Polymer 66819 De Guelle Glass Co., Inc. 422,63 Window Repalm 66820 Del Mar Analytical 499.00 Analysis of Biosollds 66821 Department of Transportation 21,000.00 Caitrans Paving Project 66822 Electra-Bond,Inc. 2,262.75 Repairs&Maintenance Services 66823 Electrical Reliability Services 3,976.00 Professional Services-Electrical Acceptance Testing for Capital Projects 66824 Element K Journals 99.00 Subscription 66825 Employers Group 5,126.00 Supervisory Training 66826 Enchanter, Inc. 5AW00 Ocean Monitoring&Outfall Inspection&Maintenance 66827 Executive Software 7,035.00 Software M21nt.Agreement 66828 FedEx Corporation 267.28 Freight Services 66829 Fisher Scientific Company 5,518.81 Lab Parts&Supplies 66830 Flat&Vertical,Inc. 305.50 Concrete Cuffing 66831 Fluor Enterprises,Inc. 8,705.16 Engineering Services J-84 66832 Forked Engineering&Surveying, Inc. 4,777.50 Engineering Services P2-66 66833 Franklin Covey 49.51 Office Supplies 66834 Frasco Profiles 492.00 Human Resources Background Checks 66835 Geomatrix Consultants, Inc. 1,250.00 Professional Services 1-2-4 66836 Grainger, Inc. 463.59 Fiberglass Extension Ladders 66837 GHD, L.L.C. 23,030.00 Professional Services-Asset Management Practices in CIP Development 66838 Harold Primrose Ice 129.50 Ice For Samples 66839 Hilti,Inc. 1,767.08 Drop-In Anchors 66840 Home Depot 169.80 Misc. Repair&Maintenance Material 66841 Hub Auto Supply 814.55 Vehicle Parts&Supplies 66842 Hydrotex 1,032.49 Luba Oil 66843 I. D. Industries, Inc. 269.40 Mechanical Parts&Supplies 66844 Industrial Distribution Group 1.057.68 Padlocks 66845 Industrial Metal Supply 502.66 Metal 66846 Inside CAUEPA 635.00 Publication 66847 Iron Mountain 91.14 Storage Fee-Bid Documents P1-37 66848 James"Tex"Cllmie 678.00 Prof.Serv.-Ocean Monitoring Vessel Final System Check&Technical Specs Review 66849 Jay's Catering 1,550.82 Meeting Expenses 66850 Johnson Ukropina 7,000.00 Professional Services-Corporate Identity Program 66851 L&N Uniform Supply Co. 145.60 OCSD Medical Team Jackets 66852 Lab Safety Supply, Inc. 92.19 Safety Parts&Supplies 66853 Labware, Inc. 4,000.00 Training Registration 66854 Lehigh Valley Safety Supply Co.,Inc. 1,929.37 Mobile Safety Shoe Service 66855 Lock N Stitch 4,668.55 Repair&Maint Services-Compressor 66856 Lucci's Gourmet Foods, Inc. 67.98 Meeting Expense 66857 Mandic Motors 325.00 Towing Services 66858 Malunkin Corporation 5,870.22 Replace and Set Up Limitorque Gear Operator HidepflftnlEXCEL.dta122olAPSHARE%Clainm Paid Report03-041CIa1=Paid Report-113004.ids EXHIBIT B flnMlNlr Paoe 2 of 8 7orAPOAd " Claims Paid From 11116104 to 11130104 Warrant No. Vendor Amount Description 66859 Meinhard Glass Products 808.00 Lab Parts&Supplies 66860 Midway Mfg&Machining Co. 5,461.38 Repair&Maintenance Services 66861 Motion Industries, Inc. 2,676.37 Motor 66862 National Seminars Group 398.00 Training Registration 66863 Neal Supply Co. 325.84 Plumbing Supplies 66864 Ninyo&Moore Corporate Accounting 413.64 Professional Services P1-37 66865 Office Depot Business Services Div. 3,648.67 Office Supplies 66866 OneSoures Distributors,Inc. 56.33 Electrical Parts&Supplies 66867 Orange County Register 5,380.31 Reconciliation User Fee Refund Program 66868 Orange Fluid System Technologies,Inc. 66.17 Plumbing Parts&Supplies 66869 Orco Construction Supply 97.82 Marking Paint 66870 Oxygen Service Company 1,250.84 Specialty Gases 66871 OCB Reprographics 76.81 Printing Service-MO 1/26/00 66872 Paul Pitt 5,050.70 Professional Services SP-74 66873 PenVahre 76.85 Plumbing Parts&Supplies 66874 Pbkelpushers,Inc. 6,115.00 Prof.Serv.-Design, Implement,Construct&Install a Corporate Intranet Site 66875 Port Supply 802.86 Boat Supplies 66876 Praxair Distribution, Inc. 14.95 Demurrage 66877 Pre-Paid Legal Services, Inc. 433.55 Employee Legal Service Insurance Premium 66878 Primary Source Office Furnishings, Inc. 970.83 Window Blinds at Lab 66879 Prudential Overall Supply 3,627.74 Uniforms&Miscellaneous Supplies 66880 PCS Express, Inc. 227.00 Courier Service 66881 PS Tek,L.L.C. 659.39 Mechanical Parts&Supplies 66882 PSI 131.94 Repair&Maintenance Services-Pressure Washer 66883 Raney Industries 1,280.00 Repair&Maintenance Service-Lower Drain Pipes 66884 Reliastar Bankers Security Life Ins. 11,132.07 Employee Life Ins. Premium,Short-Terre Disability&Cancer Ins.Payroll Deductions 66885 Ricoh Business System 1,623.90 Color Copier Lease 66886 Rota Rooter-N.O.C.011 401.48 CCTV,Engineering Inspection&Unclogging Sewer Laterals 66887 Shamrock Supply Co.,Inc. 13.30 Hardware 66888 Shureluck Sales&Engineering 2.649.52 Mechanical Parts&Supplies 66889 Sloan Electric Company 16,488.78 Motor Repairs 66890 Smardan Supply Company 1,157.04 Plumbing Supplies 66891 Smith-Emery Company 456.00 Professional Services J-77 66892 Southern California Edison 1,801.91 Power 66893 Sparling Instruments,Inc. 2,871.61 Flow Meter 66894 State Board of Equalization 150.00 Annexation Fee 66895 Summit Steel 520.53 Metal 66896 Sunset Ford 56.90 Auto Parts&Service 66897 Tetra Tech, Inc. 7,366.42 Professional Services 7-37 66898 The Walking Man, Inc. 425.00 Public Notice Printing&Mailing Services-7-39 66899 Time Warner Communications 40.47 Cable Services 66900 Times Community News 50.00 Notices&Ads 66901 Tony's Lock&Safe Service&Sales 94.83 Locks&Keys 66902 Truck&Auto Supply, Inc. 22.71 Truck Supplies 66903 Underground Service Alert of So.Calif. 1,390.23 Membership 66904 The Unisource Corporation 1,218.03 Office Supplies&Stationery 66905 US Alrconditloning Distributors, Inc. 7.99 Electrical Supplies Hi&pflftnlEXCEL.dta1220%APSHARE%Ctaims Pak!ReporM-040alms Pald Report-113004.xts EXHIBIT B nnninn, Paoe 3 of t3 manure Claims Paid From 11/18/04 to 11130/04 Warrant No. Vendor Amount Description 66906 Valin Corporation 1,425.60 Electrical Parts&Supplies 66907 Varian, Inc. 2,689.52 Instrument Repairs&Maint. 66908 Verizon California 530.08 Telephone Services 66909 The Wackenhut Corporation 19,749.81 Security Guards 66910 Western Stales Control 981.91 Repair&Maintenance Material 66911 WEF 455.00 Membership-Water Environment Federation 66912 Zee Medical 1,459.15 First Aid Supplies 66913 California Bank&Trust 9,546.00 Construction J-33-1A,Retention 66914 Orange Community Bank 20,259.00 Construction P2-82,Retention 66915 Miriam Angold 321.46 Meeting/Trafning Expense Reimbursement 66916 Darrin L.Canen 271.97 Meeting/Training Expense Reimbursement 66917 Deon M.Carrico 323.13 Meeting/Training Expense Reimbursement 66918 Timothy D.Foley 244.22 Meetinglrraining Expense Reimbursement 66919 James R.Harris 258.77 Meeting/Training Expense Reimbursement 66920 Deirdre E.Hunter 495.74 Meeting/Training Expense Reimbursement 66921 Dustin Le 154.82 Meeting/Tralning Expense Reimbursement 66922 Voided Check - - 66923 Tom B.Meregillano 561.04 Meeting/Tralning Expense Reimbursement 66924 Jamiann M.Questa 255.13 Meetingri'mining Expense Reimbursement 66925 Michael Re€deler 204.82 Meeting/Training Expense Reimbursement 66926 Christopher Tetzlaff 170.00 Meetinglrraining Expense Reimbursement 66927 Mary S.Thompson 289.22 Meeting/Training Expense Re€mbumement 66928 Jane H.Tmn 268.97 Meeting/Training Expense Reimbursement 66929 Orange County Sanitation District 758.33 Petty Cash Reimb. 66930 Johannesson,Chandra 370.00 Meeting/Tralning Expense Reimbursement 66931 City of Anaheim 74,573.80 Cooperative Projects Reimbursement Program 66932 Occidental Energy Marketing, Inc. 158.159.66 Natural Gas 66933 Southern California Edison 96,614.57 Power 66934 Xerox Corporation 39,575.10 Copier Leases 66935 AccuStandard 150.22 Lab Supplies 6693E Airgas Safety, Inc. 1,390.94 Safety Supplies 66937 Analysts, Inc. 444.40 Oil Analysis&Testing Kits 66938 American Telephone&Telegraph Corp. 781.94 Telephone Conference Services 66939 American Telephone&Telegraph Corp. 108.43 Telephone Service 66940 Bell Pipe&Supply Co. 314.95 Mechanical Parts&Supplies 66941 City of Fountain Valley 730.00 Fire Department Permit 66942 City of Tustin 82.26 Water Use 66M Court Order 150.00 Wage Garnishment 669" Consumers Pipe&Supply Co. 76.29 Plumbing Supplies 66M County of Orange 182.14 Wage Garnishment 66946 Court Trustee 454.49 Wage Garnishment 66947 Court Trustee 69.12 Wage Garnishment 66948 Dell Computer 6,687.83 (4)Dell Desktop Computers 66949 Department of Child Support Services 188.50 Wage Garnishment 66950 Employee Benefits Specialists, Inc. 9,653.38 Reimbursed Prepaid Employee Medical&Dependent Care 66951 Employment Development Dept. 4,237.00 Stale Unemployment Tax 66952 Court Order 445.00 Wage Garnishment H:%dep8fin%EXCELAta1220lAPSHARE%Clairns Paid ReporMr3.040aIrm Paid Report-113004.xta EXHIBIT B fi.mm, Paoe 4 of 6 +91an}ine Claims Paid From 11/16104to 11130/04 Warrant No. Vendor Amount Description 66953 FedEx Corporation 270.26 Freight Services 66954 First American Real Estate Solutions 381.50 On-Line Orange County Property Information 66955 Franchise Tax Board 100.00 Wage Garnishment 66956 Fry's Electronics 10.63 Computer Supplies 66957 Hagemeyer North America 79.17 Prescription Safety Glasses 66958 Harrington Industrial Plastics,Inc. 66.81 Plumbing Parts,Supplies&Tools 66959 Health Science Associates 200.00 Professional Services-Ozone Analysis 66960 Industrial Metal Supply 596.12 Metal 66961 Internal Revenue Service 300.00 Wage Garnishment 66982 Internal Revenue Service 200.00 Wage Garnishment 66963 Intl. Union of Oper.Eng.AFL-CIO Local 501 3,885.86 Dues Deduction 66964 Irvine Ranch Water District 38.02 Water Use 66965 J&B Auto Parts 14.35 Auto Parts&Supplies 66966 J.J.Keller&Associates 59.58 Publication 66967 Johnstone Supply 37.42 Electrical Supplies 66968 K.P.Lindstrom, Inc. 3,487.50 Environmental Consulting Services, 11-26&J-40-10 669N L&N Uniform Supply Co. 439.18 Unifomis&Miscellaneous Supplies 66970 Lifecom-Safety,Inc. 3,274.66 Safety Equipment Repairs 66971 McMaster-Carr Supply Co. 364.23 Mechanical&Plumbing Parts&Supplies 66972 Court Order 225.00 Wage Garnishment 66973 Motion Industries, Inc. 230.35 Hose Kit 66974 Mine Safety Appliances Company 464.07 Instrument Parts&Supplies 66975 National Bond&Trust 2,482.28 U.S.Savings Bonds Payroll Deductions 66976 New Dimension Solutions, Inc. 975.78 On-Site Training-Reliability Centered Maintenance 66977 New Horizons CLC of Santa Ana 2,625.00 Training Registration 66978 The Orange County Register 95.94 Notices&Ads 66979 Orange Fluid System Technologies,Inc. 418.19 Plumbing Paris&Supplies 66980 OCEA 635.61 Dues Deduction 66981 Pacific Investment Management Co. 3,682.00 Investment Management Service Res.95-97 66982 Parts Unlimited 305.94 Truck Supplies 66983 Court Order 296.00 Wage Garnishment 66984 Patriot Video Productions 370.84 Video 66985 Peace Officers Council of CA 1,611.00 Dues Deduction 66986 PenValve 164.54 Plumbing Parts&Supplies 66987 PeopleSoR USA, Inc. 1,050.00 Training Registration 66988 Pump Engineering 36.24 Freight Charges 66989 Retrofit Express 3,725.00 Waterfee Urinal Installations 66990 Science Applications International 1,816.44 Prof.Serv.-Support for Deployment of Monitoring Buoy&Development of S&P's 66991 Shureluck Sales&Engineering 659.71 Mechanical Parts&Supplies 66992 SkillPath Seminars 149.00 Training Registration 66993 SmHh-Emery Company 1,247.25 Soils,Concrete&Other Materials Testing-1-2-4 66994 Court Order 721.50 Wage Garnishment 66995 Snap-On Tools 120.40 Tools 66996 So.Cal.Gas Company 6,097.49 Natural Gas 66997 Southern Cal€fomia Edison 28.23 Power 66998 Southern Counties Lubricants 1,339.33 Engine Oil 66999 Southland Envelope Company,Inc. 474.02 Reverse Flap Payroll Envelopes H.ideptlflMEXCEL.dta1220%APSHARE%Cla=Paid Report03-041ClaIrm Pald Report-113004.)ds EXHIBIT B s,.ninn.. Pace 5 of 6 II)MI na Claims Paid From 11/16104 to 11130/04 Warrant No. Vendor Amount Description 67000 Summit Steel 125.48 Metal 67001 Surveyor Services 67.75 Compass Repairs 67002 SBC 3,876.41 Telephone Services 67003 Thompson Industrial Supply,Inc. 2,608.77 Motor 67004 Time Motion Tools 471.76 Lighted,Folding Magnifier 67005 Tropical Plaza Nursery, Inc. 7,935.79 Contract Groundskeeping MO 5-11-94 67006 United Parcel Service 1,607.66 Parcel Services 67007 United Way 245.00 Employee Contributions 67008 USC-FCCCHR 1,340.00 Membership&Training Registration(USC-Foundation for Cross-Connection Control) 67009 Verizon California 4,504.14 Telephone Services 67010 VWR Scientific Products 103.42 Lab Parts&Supplies 67011 Water Environment Federation 15,690.10 Professional Services-Blosollds Audit 67012 Western States Controls 94.61 Instrument Parts&Supplies 67013 WEF 139.00 Membership-Water Environment Federation 67014 WEF Publications 7.75 Shipping Charges 67015 Wage Garnishment 597.50 Wage Garnishment 67016 Patrick M.Carrillo 225.91 Meetingrrraining Expense Reimbursement 67017 Ronald L.Wade 417.01 Meeting/rraining Expense Reimbursement 67018 County of Orange-Auditor Controller 120.00 Administrative Processing Fee for Supplemental Sewer Fee Adjustments/Cancellations 67019 County of Orange-Auditor Controller 750.00 Administrative Processing Fee for Supplemental Sewer Fee Adjustments/Cancellations 67020 County of Orange 650.00 Encroachment Permit 67021 Evangelista,Jerry 1,938.53 Employee Computer Loan Program 67022 Bondlogistix, L.L.C. 6.209.56 Prof.Serv.-Preparation of Interim Arbitrage Rebate Report,Series 2000 B.COPs 67023 Ganahl Lumber Company 96.98 Lumber/Hardware 67024 Ponton Industries,Inc. 2,350.25 Lab Instrument 67025 SBC 2,540.68 Telephone Services Total Accounts Payable-Warrants $ 7.768.669.17 Payroll Disbursements 35929-36228 Employee Paychecks $ 201,378.39 Termination Check&Merit Retro Payroll 36229-36327 Employee Paychecks 168,850.57 Biweekly Payroll 11/24/04 36328-36340 Employee Paychecks 4,911.34 Interim Merit Increases&OCERS Refund 105134-105672 Dined Deposit Statements 1,123,604.99 Biweekly Payroll 11/24/04 Total Payroll Disbursements $ 1,498,745.29 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 973,859.95 Biweekly Payroll 11/24/04 U.S.Bank 94,912.69 November Interest Payment for Series 2000,A&B Certificates of Participation Total Wire Transfer Payments $ 1,068,772.64 Total Claims Paid 11116104-11130104 $ 10,336,187.10 H:%dop0f[n1EXCEL dta%2201APSHARE1CWrns Paid ReporP43-04Ctaims Paid Report-113004.ids EXHIBIT B n,.r»nn, Paae 6 of 6 MAMMA '` BOARD OF DIRECTORS Meeting Date To Bd.of Dir. 01/26/05 AGENDA REPORT Item Number Item Number s Orange County Sanitation District FROM: Gary Streed, Director of Finance/Treasurer Originator: Lenora Crane. Executive Assistant SUBJECT: PAYMENT OF CLAIMS OF THE ORANGE COUNTY SANITATION DISTRICT GENERAL MANAGER'S RECOMMENDATION Ratify Payment of Claims of the District by Roll Call Vote. CONFLICT OF INTEREST NOTIFICATION Pursuant to Government Code Section 84308. you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party to a contract involving the Orange County Sanitation District. Further, you may not participate in the decision making process to award a contract to such party. For reference. you are directed to the Register of Warrants as to all current contractors/vendors with the District. In general. you must disclose the basis of the conflict by identifying the name of the firm or individual who was the contributor. For the specifics of Government Code Section 84308, please see your Director's Handbook or call the office of General Counsel. SUMMARY See attached listing. PRIOR COMMITTEE/BOARD ACTIONS N/A ATTACHMENTS 1. Copies of Claims Paid reports from 12/01/04 to 12/15/04 and 12/16/04 to 12/31/04 H:\dept\agenda\Board Agenda Reports\2005 Board Agenda&Agenda Reports\0105\Item 8.0aims Paid.doc Revised: 06/04/03 Claims Paid From 12/01/04 to 12116/04 Warrant No. Vendor Amount Description Accounts Parable-Warrants 67028 Agilent Technologies, Inc. $ 61,331.74 Lab Parts&Supplies 67027 Basic Chemical Solutions, L.L.C. 64,735.34 Sodium Bisulfile&Sodium Hydroxide 67028 Black&Veatch Corporation 531,900.04 Engineering Services Pi-78&P1-102 67029 Blue Cross of California 339,847.60 Medical Insurance Premium 67030 Brown&Caldwell 177,978.04 Professional Services 172-90 67031 Carollo Engineers 25,000.00 Prof.Serv.-Outage/Spill Data Analysis of 9/4/04 67032 Deli Computer 63,639.00 (22)Computers, (3)Server Arrays,(25)SATA Drives&Mouse 67033 Delta Contracting Corp. 69,916.00 Replacement of(13)Door Sets at Plant 2 67034 Delta Dental 55,578.02 Dental Insurance Plan 67035 E.I. Du Pont De Nemours and Company 96,385.00 Painting Maint.Services MO 4-22-98 67036 Flo-Systems,Inc. 31,620.72 Pump Parts&Supplies 67037 Fortis Benefits Insurance Company 26,987.12 Long-Term&Short-Tenn Disability Ins. Premium 67038 HDR Engineering, Inc. 332,153.64 Professional Services P1-82 67039 IPMC clo Parsons 1,183,667.00 Professional Services-Integrated Program Management 67040 Kaiser Foundation Health Plan 61,123.44 Medical Insurance Premium 67041 Kemiron Companies,Inc. 251,427.48 Ferric Chloride MO9-27-95 67042 Lee&Ro, Inc. 36,841.63 Professional Services 5-52&132-47-1 87M Malcolm Pimie, Inc. 233.667.33 Professional Services P2-80&1-10 67044 MWH Americas, Inc. 68,028.00 Professional Services P2-74 67045 Orange County Water District 84,002.73 GAP Water Use 67046 Pioneer Americas, Inc. 536,394.36 Sodium Hypochlorite 67047 Polydyne, Inc. 105,374.94 Cationic Polymer MO 3-11-92 67048 RemedyTemp, Inc. 40,959.07 Temporary Employment Services 67049 Science Applications Intl.Corporation 36,046.19 Ocean Monitoring 67050 Trusecure Corporation 33,995.00 Software Maintenance -SiteSecure 67051 Tule Ranch/Magan Farms 231.976.92 Residuals Removal MO 3-29-95 67052 TMV Systems Engineering, Inc. 49,976.00 Software Maintenance-CRISP 67053 U.S.Metro Group, Inc. 26,785.00 Janitorial&Floor Maintenance at Plants 1 &2 67064 U.S. Peroxide,L.L.C. 261,806.00 Odor&Corrosion Control Treatment for Coll.Sys.; Hydrogen Peroxide&Ferrous Chloride 67055 Woodruff,Spradlin&Smart 99,735.83 Legal Services MO 7-26-95 67056 ARB, Inc. 785,074.21 Construction 7-39&7-41 67057 Steve P Rados,Inc. 413,674.00 Construction 1-2-4 67058 Union Bank of California 45.886,00 Construction 1-2-4, Retention 67059 Union Bank of Califomia 87,230.46 Construction 7-41, Retention 67060 Abatix Environmental Corp. 558.75 Hardware 67061 Abrasive Engineering Tool&Equip. 25.86 Hardware 67062 Absolute Standards, Inc. 750.00 Lab Parts&Supplies 67083 Advance Business Graphics 109.98 Printing Services-Business Cards&Stationery 67064 Advanced Engine Technology Corporation 3,072.44 Professional Services-Preparation of Documents for PEMS Recertification 67065 Advanced Sealing&Supply Co., Inc. 296.31 Pump Parts&Supplies 67066 Airco Filter Service 502.49 Filters 67067 Airgas Safety 8,639.27 Safety Supplies 67068 Alhambra Foundry Co.,Ltd. 7,127.23 Manhole Frames&Covers 67069 NiMed, Inc. 88.45 Ergonomic Computer Supplies 67070 American F€ldelity Assurance Company 254.90 Employee Cancer Insurance 67071 American Machinery&Blade, Inc. 120.03 Punch&Die Lubricant H.IdepttBn%EXCEL.dta=O%APSHAREICWffm Paid ReportUM-041CIeims Paid Report-121504.)ds EXHIBIT A 6..191nn,. Pace 1 of 15 vm-wnnnn Claims Paid From 12/01/04 to 12f15104 Warrant No. Vendor Amount Description 67072 American Red Cross 24.00 CPR Training&Miscellaneous Supplies 67073 American Society of Civil Engineers 960.00 Membership 67074 American Society For Microbiology 153.00 Membership 67075 Analysts, Inc. 444.40 Oil Test Kit&Analyses 67076 Anixter, Inc. 321.55 Tools&Tool Kit 67077 Arch Wireless 1,220.42 Paging Service-Airtime,Service&Equipment 67078 Arens Industries, Inc. 1,726.22 Instrument Supplies 67079 Arizona Instrument 1,348.25 Instrument Supplies 67080 Ashbmok Corporation 310.80 Filter Press Parts&Supplies 67081 Aurora Pictures,Inc. 699.00 Video 67082 Awards&Trophies Company 611.37 Awards&Trophies 67083 ACCU-Sludge 737.77 Lab Supplies 67084 ACS Hydraulics, Inc. 231.83 Motor Repairs 67085 AMSA 40.00 Publication 670M API Basco 1,546.79 Heat Exchanger 67087 ASAP Software Express 774.90 Software Maintenance 67088 ASMS Conference 65.00 Membership 67089 Bar Tech Telecom, Inc. 159.54 Telephone Line Cord 67090 Basler Electric Company, Department 590 4,136.63 Electrical Supplies 67091 Battery Specialties 987.66 Batteries 67092 Beckmann,Betty 1,368.36 User Fee Refund Regarding Septic Tanks 67093 BloMerieux Vitek, Inc. 396.41 Lab Supplies 67094 Black Box Corporation 1,764.21 Analog Phone Converter Devices 67095 Bondlogislix, L.L.C. 2,025.00 Prof.Serv.-Preparation of Interim Arbitrage Rebate Report Re 1993 Series COPs 67096 Boyle Engineering Corporation 23,675.40 Prof.Seivs.-Update Sewer Maser Plans for Lemon&Cowan Heights&Orange Park Acres 67097 Bush&Associates,Inc. 13,940.00 Professional Services 3-54,7-23-1,7-41 &J-9 67098 California Relocation Services, Inc. 1,228.75 Office Files Moving/Relocation Services 67099 Califomia Special Districts 400.00 Membership 67100 Callan Associates, Inc. 3,650.00 InvestmentAdvisor 67101 Caltrol, Inc. 2,513.20 Pressure Regulators 67102 Cambridge Isotope Labs 972.27 Lab Parts&Supplies 67103 Cardlock Fuel Systems,Inc. 15,557.42 Fueling District Vehicles at Local Gas Stations 67104 Columbia Analytical Services, Inc. 270.00 Analysis of Wastewater, Industrial Wastewater&Biosolids 87105 Compressor Components of California 5,821.00 Repairs&Maintenance&Cleaning Service-Pilot Fuel Assemblies 67108 Consolidated Elect.Distributors, Inc. 6,283.91 Electrical Parts&Supplies 67107 Consumers Pipe&Supply Co. 259.66 Plumbing Parts&Supplies 67108 Corporate Express 19,053.17 Office Supplies 67109 Cortech Engineering 4,5W.54 Pump Supplies 67110 County of Orange-Auditor Controller 1,120.00 Encroachment Permit 7-39 67111 County of Orange-Auditor Controller 35.00 Encroachment Permit 11-22 67112 County Wholesale Electric Co. 767.99 Electrical Parts&Supplies 67113 Crane Veyor Corp. 3,565.09 Overhead Crane Repairs 67114 Culligan of Orange County 40.00 Maint.Agreement-Cen Gen Water Softener System 67115 CAPPO Conference Registration 200.00 Purchasing Meeting Registration 67116 CGCWF-Califemia Govemors Conference 1,500.00 General Management Administration Division Meeting Registration 67117 CR&R, Inc. 1,650.00 Container Rentals 67118 CSI Computational Systems 783.46 Truck Cable H:%depllf[n1EXCEL.dta%" 1APSHAREWAalma Paid ReportIM-041CIairm Paid Report-121504.)ds EXHIBIT A s„n+nn, Paae 2 of 15 v1,31,W10- Claims Paid From 12/01/04 to 12116104 Warrant No. Vendor Amount Description 67119 CSMFO-Sandra Schmidt 35.00 Review Fee-CSMFO Award for Outstanding Financial Reporting FY Ending 6/30104 67120 CWEA Membership 291.00 Membership-Calif.Water Environment Assoc. 67121 De Guelle Glass Co., Inc. 331.78 Window Repairs 67122 Del Mar Analytical 2,526.00 Analysis of Biosolids 67123 Dharma Consulting 15.459.41 Prof.Services-Strategic Planning&EMT Development 67124 Dunn-Edwards Corporation 331.17 Paint Supplies 67125 DGA Consultants, Inc. 3,605.00 Professional Services-CCTV Data Evaluation&Support 67126 Ecology Control Industries 11,503.51 Hazardous Waste Disposal 67127 Electro Switch Corp. 357.90 Electrical Parts&Supplies 67128 Employee Benefits Specialists, Inc. 621.25 Reimbursed Prepaid Employee Medical&Dependent Care 67129 Employers Group 16,012.50 Prof.Serv.-Succession Planning,Career Develop.Assess.&Customized Model Creation 67130 Enchanter, Inc. 6,400.00 Ocean Monitoring&Outfall Inspection&Maintenance 67131 Environmental Resource Association 1,596.79 Lab Paris&Supplies 67132 Environmental Science Associate(ESA) 14,800.71 Professional Services J-40-5 67133 Equapac 2,471.40 Hydrochloric Acid 67134 Excel Door&Gate Company, Inc. 500.00 Repair&Maintenance Services 67135 ENS Resources, Inc. 10,000.00 Professional Services-Legislative Advocate 67136 FedEx Corporation 72.88 Freight Services 67137 Fisher Scientific 12,629.30 Lab Parts&Supplies 67138 Flat&Vertical,Inc. 200.00 Concrete Cutting 67139 Fluor Enterprises, Inc. 18,888.07 Engineering Services J-84 67140 Foothill Financial 1,438.68 User Fee Refund Regarding Septic Tanks 67141 Fountain Valley Paints, Inc. 270.24 Paint Supplies 67142 Franklin Covey 944.15 Office Supplies 67143 FTlnc. 228.43 W-2 Forms&Envelopes 67144 G. E.Supply 11,572.69 Electrical Parts&Supplies 67145 Ganahl Lumber Company 508.44 Lumber/Hardware 67146 Gardner Denver 921.72 Mechanical Parts&Supplies 67147 George T.Hall 33.52 Electrical Supplies 67148 Gerhardt's,Inc- 814.45 Repairs&Maintenance Service on Altemator 67149 Gieriich-Mitchell, Inc. 8,270.54 Mechanical Parts&Supplies 67150 Goldenwest Window Service 3,177.00 Window Cleaning Service-Spec.#990015 67151 Grainger, Inc. 6,240.92 Electrical Parts&Supplies 67152 Graphic Controls 112.99 Instrument Parts&Supplies 67153 Graybar Electric Company 1,458.56 Electrical Parts&Supplies 67154 Great Westem Sanitary Supplies 46.55 Janitorial Supplies 67155 Haaker Equipment Company 85.93 Misc.Vehicle,Parts,Repairs&Service 67156 Hach do Ponton Industries 2,442.80 Lab Parts&Supplies 67157 Hagemeyer North America 1.380.73 Prescription Safety Glasses 67158 Harrington Industrial Plastics, Inc. 1.487.17 Plumbing Supplies 67159 Henry Company-Sealants Division 107.18 Sealer(Quick Seal) 67160 Hill&Associates, Inc. 5,805.38 Pumps 67161 Hilti, Inc. 2,107.61 Tools 67162 Hoerbiger Servios, Inc. 310.07 Mechanical Parts&Supplies 67163 Home Depot 569.15 Misc.Repair&Maintenance Material 67164 Hub Auto Supply 905.52 Vehicle Paris&Supplies 67165 I. D.Industries, Inc. 155.72 Mechanical Parts&Supplies H:%deptlfin%EXCEL.dia=%APSHAREACtWrns Paid RepoA103-04%CWma Paid Repol-121W4.x19 EXHIBIT A A..MMI, Pane 3 of 15 vi?mnns Claims Paid From 12/01/04 to 12/15/04 Warrant No. Vendor Amount Description 67166 IDEXX Laboratories, Inc. 4.266.90 Lab Parts&Supplies 67167 Industrial Distribution Group 2,714.75 Tools, Paint Supplies, Locks&Misc.Maintenance Supplies 67168 Industrial Metal Supply 698.42 Metal 67169 Industrial Threaded Products, Inc. 2,482.72 Mechanical Parts&Supplies 67170 Inorganic Ventures, Inc. 768.77 Lab Parts&Supplies 67171 Inplant Sales,L.L.C. 54.95 Mechanical Parts&Supplies 67172 Intratek Computer, Inc. 1,440.00 Network&Server Maintenance 67173 Iron Mountain Off-Site Data Protection 234.00 Offsite Back-Up Tape Storage for NT Server 67174 Irvine Technology Corporation 21,042.00 Temporary Employment Services 67175 J&B Auto Parts 80.53 Auto Parts&Supplies 67176 J&L Industrial Supply 693.41 Toots 67177 J.G.Tucker and Son, Inc. 1,398.09 Road Cones 67178 Jay's Catering 1,217.65 Meeting Expenses 67179 Jensen,Mary L. 1,366.36 User Fee Refund Regarding Septic Tanks 67180 Johnson Environmental Services 5.795.25 Mechanical Parts&Supplies 67181 Kaman Industrial Technologies 594.37 Mechanical Parts&Supplies 67182 Kforce, Inc. 12,431.60 Temporary Employment Services 67183 Kienow Associates, Inc. 7,203.70 Legal Services 1-2-4 67184 Kings County Tax Collector 11,607.93 Property Taxes 67185 L&N Uniform Supply Co. 431.99 OCSD Polo Shirts with Decal for Nerissa Ocean Monitoring Vessel Staff 67186 Lab Safety Supply, Inc. 1.086.16 Lab Safety Supplies 67187 Leybold Vacuum Products, Inc. 128.89 Lab Parts&Supplies 67188 Lucci's Gourmet Foods,Inc. 162.90 Meeting Expense 67189 LA Chemical 1,571.07 300 Gallon Bleach Tote 67190 LINJER 10,142.67 Professlonal Service-DART MO 9-22-99 67191 M.J.Schiff&Associates, Inc. 1,920.66 Soil Sample Drilling Permit Costs 67192 Main Photo Service 25.34 Batteries 67193 Managed Health Network 965.52 Employees Assistance Program 67194 Matt Chlor, Inc. 1,228.37 Pressure Switches 67195 Mayer, Brown, Rowe&Maw, L.L.P. 5.000.00 Professional Services-Strategic Planning&Advocacy 67196 McMaster-Carr Supply Co. 8,686.81 Mechanical Parts,Tools, Batteries, Key Stock&Misc.Supplies 67197 Measurement Control Systems, Inc. 2.359.91 Repair&Calibration Services 67198 Medlin Controls Co. 1,098.34 Instrument Supplies 67199 Mid-West Associates 873.88 Pump Supplies 67200 Mission Uniform Service 11,836.80 Uniform Rentals 67201 Mitchell Instrument Co. 76.00 Instrument Parts&Supplies 67202 Moody's Investors Service 5,500.00 COP Rating Maintenance Fees-Series 2000 COPS 67203 Moore Industries International 733.79 Electrical Parts&Supplies 67204 Moreland&Associates 4,967.40 Auditing Services MO 3-8-95 67205 MARMAC Field Services, Inc. 17,783.00 Prof.Sent.-Chemical Scrubber Conversion to Biotrickling Filters 67206 National Plant Services, Inc. 15,490.00 Vacuum Truck Services 67207 Neal Supply Co. 1,072.76 Plumbing Supplies 67208 New Hammes, Inc. 908.34 Tools 67209 Newark Electronics 443.56 Electrical Parts&Supplies 67210 Ninyo&Moore Corporate Accounting 20.709.50 Professional Services-Materials Testing,Inspection&Geotechnical Engrg. 67211 NAS Associates, Inc. 225.00 Lab Services 67212 NRG Thermal Services,L.L.C. 2,627.54 Mechanical Parts&Supplies H:mdeptmfin%EXCEL.dtam220mAPSHAREICIrdms Paid ReportUM-04%Clalrns Pali Report-121504.xts EXHIBIT A finMlNlr Paae 4 of 15 111'r affi.r Claims Paid From 12/01/04 to 12115104 Warrant No. Vendor Amount Description 67213 Office Depot Business Services Div. 1,636.49 Office Supplies 67214 Omron IDM Controls, Inc. 1,9W.11 Instrument Parts&Supplies 67215 OneSource Distributors, Inc. 904.23 Electrical Parts&Supplies 67216 Orange County Hose Company 138.35 Hydraulic Hose Supplies&Parts 67217 Orange Courier 91.30 Courier Services 67218 Orange Fluid System Technologies, Inc. 1,380.05 Plumbing Parts&Supplies 67210 Ovem,Chad 1,017.81 User Fee Refund Regarding Septic Tanks 67220 Oxygen Service Company 2,608.66 Specialty Gases 67221 OCB Reprographics 12,266.81 Printing Service-MO 1/26/00 67222 P.L. Hawn Company, Inc. 892.04 Electrical Supplies 67223 Pacific BellUorldCom 7.46 Telephone Service 67224 Pacific Mechanical Supply 127.69 Plumbing Supplies 67225 Parker Hannifin Corporation 189.06 Main Drain Filters 67226 Patriot Video Productions 741.69 Video 67227 PenValve 98.08 Plumbing Paris&Supplies 67228 Permaseal 439.62 Lube Oil 67229 Port Supply 27.20 American Flag for Ocean Monitoring Vessel Nerissa 67230 Pre-Paid Legal Services, Inc. 433.55 Employee Legal Service Insurance Premium 67231 Primary Source Office Furnishings, Inc. 1,648.37 Office Furniture 67232 Process Equipment Company 4,654.69 Impeller Assembly&Misc. Parts 67233 Project Management Institute 154.00 Membership 67234 Prudential Overall Supply 2.419.74 Uniforms&Related Articles 67235 PCG Industries 675.00 Repair&Maintenance Services-High Rate Mixer Pump Shaft 67236 PCS Express, Inc. 523.10 Courier Service 67237 PRIMA: Public Risk Management Assoc. 310.00 Membership 67238 PSI 146.72 Repairs&Maintenance on Rebuild Shop Steam Cleaner 67239 PVF Sales,Inc. 317.91 Plumbing Parts&Supplies 67240 R.W.Beck 13,447.95 Professional Services FE04-20,FE03-15&FE02-54 67241 Rainbow Disposal Co. 2.816.57 Trash Removal 67242 Reilly&Associates 9,947.70 Investigative Human Resources Services 67243 Reliastar 9,958.90 Employee Basic Life&Managers'Insurance Premiums 67244 Reliastar Bankers Security Life Ins. 11,041.43 Employee Life Ins.Premium,Short-Tenn Disability&Cancer Ins. Payroll Deductions 67245 Retrofit Parts&Components, Inc. 26.91 Mechanical Parts&Supplies 67246 Robert Skeels&Co. 118.70 Padlock 67247 Rosemount Analytical, Inc. 3,001.95 Instrument Parts&Supplies 67248 Roto Rooter-N.O.C.#11 107.75 CCTV, Engineering Inspection&Sewer Lateral Unclogging 67249 Ryan Herco Products Corp. 58.80 Pump Supplies 67250 RMS Engineering&Design, Inc. 10,665.00 Engineering Services-Facilities Engineering Program FE05-07 67251 RS Hughes Co, Inc. 614.58 Paint Supplies 67252 S&J Supply Co., Inc. 2,002.00 Valves 67263 Sancon Engineering, Inc. 8,315.00 Construction-Manhole Rehabilitation Program 67254 Schwing America, Inc. 700.48 Pump Supplies 67255 Scientific Refrigeration 750.00 Refrigerator Repair 67256 Scott Specialty Gases, Inc. 903.48 Lab Parts&Supplies 67257 Sewer Equipment Company of America 214.42 Hose Guides 67258 Shamrock Supply Co., Inc. 37.72 Plumbing Parts&Supplies 67259 Shureluck Sales&Engineering 2,003.12 Pump Parts&Supplies H.1deptlftn%EXCELdta=kAPSH4RE1 Wrm Paid Report103-041CIaIrns Paid Report•121504.xls EXHIBIT A annlnn� Paae 5 of 15 vi,)nnnr Claims Paid From 12101104 to 12/15104 Warrant No. Vendor Amount Description 67260 Sigma-Aldrich, Inc. 259.40 Lab Parts&Supplies 67261 Smardan Supply Company-Fountain Valley 163.71 Plumbing Parts&Supplies 67262 Smith Pipe&Supply 434.34 Plumbing Parts&Supplies 67263 Smith-Emery Company 2,243.25 Soils,Concrete&Other Materials Testing 67264 Snap On Industrial 76.83 Mechanical Supplies&Tools 67265 SoftChoice Corp. 4,044.30 Software 67266 Solar Biologicals, Inc. 875.00 Lab Parts&Supplies 67267 Southern Califomia Edison 204.89 Power 67268 Southern California Fuse, Inc. 639.64 Weatherproof Fuse Holier 67269 Southern Counties Lubricants 7,280.05 Engine Oil 67270 Sparkletts 3,622.04 Drinking Water/Cooler Rentals 67271 Sperling Instruments, Inc. 197.31 Flow Meter 67272 Spex Certiprep, Inc. 290.01 Lab Parts&Supplies 67273 Stanley Steamer International, Inc. 445.12 Carpet Cleaning Services 67274 State Water Resources Control Board 6,235.00 Annual NPDES Permit Fee 67275 Stemar Equipment&Supply Co., Inc. 479.26 Mechanical Parts&Supplies 67276 Summit Steel 1,049.92 Metal 67277 Sunset Ford 42.42 Auto Parts&Service 67276 Sunset Industrial Parts 380.62 Mechanical Supplies 67279 Technical Service Group, Inc. 1,381.60 SCADA System VAX Service Agreement 67280 SETAC 260.00 Membership 67281 SKC-West, Inc. 471.31 Lab Parts&Supplies 67282 SWRCB Accounting Office 4,678.00 Annual Fee-Waste Discharge Permit 67283 Teletrac, Inc. 245.00 Monthly Air-Time Service Fee&Software/Hardware Maint.for Vehicle Tracking Sys. 67284 Terming International 965.00 Pest Control 67285 Tetra Tech, Inc. 22,210.64 Professional Services 7-37 67286 Thermo Electron Corp. 1.994.96 Pump&Pump Parts&Supplies 67287 Thompson Industrial Supply, Inc. 10,509.94 Motors&Mechanical Supplies 67288 Tony's Lock&Safe Service&Sales 57.10 Locks&Keys 67289 Southern California Trane Service 50.81 Mechanical Parts&Supplies 67290 Truck&Auto Supply, Inc. 132.91 Automotive Supplies 67291 Teksystems 7.055.00 Temporary Employment Services 67292 US Filter Corp. 846.83 Service Agreement-Lab Purification System 67293 Ultra Scientific 82.28 Lab Parts&Supplies 67294 United Direct Marketing 1,409.36 Public Outreach Printing&Distribution Costs&Postage Permit Re 5-51&5-52 67295 United Pacific Services, Inc. 16,694.50 Landscape Maintenance at Plants 1 &2 and Pump Stations 67298 US Airconditloning Distributors, Inc. 473.95 Electrical Supplies 67297 Vapex,Inc. 4,164.00 Pumps&Pump Parts&Supplies 67298 Varian, Inc. 1,786.78 Lab Parts&Supplies 67299 Verne's Plumbing 1,124.92 Service Contract-Testing&Cert.Backflow Devices at Plis. 1&2&Pump Sta. 67300 Vision Service Plan-(CA) 9,591.00 Vision Service Premium 67301 Vortex Corp. 991.10 Door Repair 67302 VWR Scientific Products 9,675.72 Lab Parts&Supplies 67303 The Wackenhut Corporation 17,918.05 Security Guards 67304 Waxie Sanitary Supply 1,698.04 Janitorial Supplies 67305 Weber Scientific 525.54 Lab Supplies 67306 West Coast Rotor 1,575.74 Mechanical Parts&Supplies H:%deptlfinlEXCEL.dia12201APSHARE%Clairm Paid ReportW3-041Cta1rm Paid Report-121604.)ds EXHIBIT A 9n/M1rtllr Pace 6 of 15 111,2firo! Claims Paid From 12/01/04 to 12J15104 Warrant No. Vendor Amount Description 67307 West-Late Supply Company, Inc. 2,246.66 Electrical Supplies 67308 Western Hydro Corp. 4,503.89 Impeller; 67309 Western Sandblasting Company 680.00 Sandblasting 67310 Western States Controls 186.05 Instrument Parts&Supplies 67311 Xerox Corporation 13,020.19 Copier Leases 67312 Xpedex Paper&Graphics 25.42 Office Supplies 67313 Xyon Business Solutions, Inc. 10,944.00 Temporary Employment Services 67314 Yale/Chase Materials Handling, Inc. 21,962.85 Taylor Dunn Electric Carts&Parts 67315 J1e K.Chang 143.00 Meeting/Training Expense Reimbursement 67316 Peter Cheffs 60.00 Meeting/Training Expense Reimbursement 67317 Kimberly C.Christensen 380.25 MeetinglTraining Expense Reimbursement 67318 Steven R. DeWilde 451.20 Meeting/Training Expense Reimbursement 67319 Marcus D. Dubois 430.00 Meeting/Training Expense Reimbursement 67320 Jerry F. Evangelista 629.94 Meeting/Training Expense Reimbursement 67321 Chandra R.Johannesson 134.61 Meeting/Training Expense Reimbursement 67322 Roger A. Kenerson 170.00 Meeting/Training Expense Reimbursement 67323 William J. Lloyd 1,062.52 Meeting/Tralning Expense Reimbursement 67324 Paul Loehr 1,843.03 Meeting/Training Expense Reimbursement 67325 Julie A.Matsumoto 200.00 Meeting/Training Expense Reimbursement 67326 Robert Michna 190.00 Meeting/Training Expense Reimbursement 67327 Paul A. Mitchell 150.00 Meeting/Tralning Expense Reimbursement 67328 Robert M. Morris 130.00 Meeting/Training Expense Reimbursement 67329 Jeffrey T. Reed 1,090.64 Meeting/Training Expense Reimbursement 67330 Jeremy J.Saum 189.95 Meeting/Tralning Expense Reimbursement 67331 Mohammed K.Shaaban 603.63 Meeting/Training Expense Reimbursement 67332 Mahin Talebi 284.00 Meeting/Training Expense Reimbursement 67333 Lisa L.Tomko 1,220.95 Meeting/Training Expense Reimbursement 67334 Mark A.Tomko 390.53 Meeting/Tralning Expense Reimbursement 67335 Orange County Sanitation District 1,472.62 Petty Cash Reimb. 67336 Air Products&Chemicals, Inc. 54,534.78 O&M Agreement Oxy Gen Sys MO B-8-89 67337 Consiliant Technologies 73,667.40 Professional Services-Installation of Tape Library 67338 Southern California Edison 56,091.03 Power 67339 Orange County Sanitation District 25,250.82 Worker's Comp.Reimb. 67340 Advanced Engine Technology Corporation 63.20 Freight Charges 67341 Airgas Safety, Inc. 2,743.38 Safety Supplies 67342 Allied Packing&Rubber, Inc. 89.65 Plumbing Supplies 67343 AT&T Universal Biller 1,134.34 Telephone Service 67344 American Telephone&Telegraph Corp. 24.90 Telephone Service 67345 Bar Tech Telecom, Incorporated 712.50 Telephone Equipment Mahnt.&Service 67346 Bootwodd 10,544.35 Mobile Safety Shoe Service 67347 California Recreation Company 4,563.60 Boat Sltp Rental Fees for Ocean Monitoring Vessel Nerissa 67348 Califomia Utility Equipment 3,942.16 Buried Utility Locator 67349 City of Irvine 800.00 Plan Check Fees-7-21 67350 Court Omer 150.00 Wage Garnishment 67351 Compressor Components Of California 598.24 Repairs&Maintenance Service at College Pump Station 67352 Consolidated Elect.Distributors, Inc. 166.02 Electrical Parts&Supplies 67353 Cortech Engineering 5,579.19 Pump H:%depflftn%EXCEL.dla%9 MAPSHAREIClalms Paid RaparA03-04CIalms Pald Repod-121504.xts EXHIBIT A finflim^ Pace 7 of 15 vrsnrtrts; Claims Paid From 12/01104 to 12/15/04 Warrant No. Vendor Amount Description 67354 County of Orange 182.14 Wage Gamishment 67355 Court Trustee 454.49 Wage Garnishment 67356 Court Trustee 69.12 Wage Garnishment 67357 CMAA 310.00 Training Registration(Construction Mgmt.Assoc.of America) 67358 Department of Child Support Services 188.50 Wage Gamishment 67359 Employee Benefits Specialists, Inc. 9,506.38 Prepaid Employee Medical&Dependent Care 67360 Employers Group 3,215.00 On-Site Training-Managing Priorities&Projects 67361 Court Oster 445.00 Wage Garnishment 67362 Excel Door&Gate Company, Inc. 425.00 Repair&Maintenance Services 67363 ESSCO: Engineering Sales Service 8,342.01 Submersible Pump 67364 FedEx Corporation 97.79 Freight Services 67365 Franchise Tax Board 100.00 Wage Garnishment 67366 Frost Engineering Service Co. 10,768.33 Valves 67367 Fry's Electronics 225.49 Computer Supplies 67368 City of Fullerton 130.48 Water Use 67369 Govemment Finance Officers Association 2,835.00 Finance Training Registration 67370 Gieriich-Mitchell, Inc. 448.81 Mechanical Parts&Supplies 67371 Grainger, Inc. 463.60 Special Duty Fiberglass Extension Ladders 67372 Greenleaf Industries 15,165.00 Replacement of Landscaping Materials Re Project I-2-4 67373 High Impact Priority Training 7,310.00 On-Site Forklift Training-1017, 10/27&10/28/04 67374 Hill&Associates, Inc. 48.62 Freight Charges 67375 City of Huntington Beach 14,931.79 Water Use 67376 Industrial Distribution Group 1,656.79 Mechanical Parts&Supplies 67377 Internal Revenue Service 300.00 Wage Gamishment 67378 Internal Revenue Service 200.00 Wage Garnishment 67379 Intl. Union of Oper Eng AFL-CIO Local 501 3,906.36 Dues Deduction 67380 Jamison Engineering Contractors, Inc. 1,614.28 Emergency Repairs-SARI Line 67381 John Bell Pool Service 2,840.00 Service Agreement-Admin. Bldg.Atrium Pool 67382 L&N Unifonn Supply Co. 180.31 OCSD Palo Shirts with Decal-Biosolids Program 67383 League of California Cities 175.00 Membership 67384 Lexis-Nexis 9.95 Books&Publications 67385 Lifecom-Safety, Inc. 472.64 Instruments Parts&Supplies 67386 McMaster-Carr Supply Co. 4,498.05 Mechanical Parts&Supplies 67387 Midway Mfg&Machining Co. 5.645.94 Repairs&Maintenance Services -Machinery 67388 Miele, Inc. 1,992.84 Laboratory Washer/Dryer for Glassware 67389 Moody's Investor's Service 5,000.00 COP Rating Maintenance Fee-Series 1993 COPs 67390 Court Order 225.00 Wage Garnishment 67391 National Bond&Trust 2,485.36 U.S.Savings Bonds Payroll Deductions 67392 New Horizons CLC of Santa Ana 2,625.00 Training Registration 67393 City of Newport Beach 71.82 Water Use 67394 Nextel Communications 1,113.60 Cellular Phones&Air Time 67395 The Norco Companies 177.28 Mail Delivery Service 67396 OneSource Distributors, Inc. 68.18 Electrical Parts&Supplies 67397 OCEA 635.61 Dues Deduction 67398 Pacific Mechanical Supply 899.16 Plumbing Supplies 67399 Parker Hannifin Corporation 857.35 Drain Filters 67400 Court Order 296.00 Wage Garnishment H:ldeptlfin%EXCEL.dta%220%APSHARE1CWnis Paid Report103-041Ciaims PaW Report-121504.xls EXHIBIT A fi.mnn, Pace B of 15 1/i7l7 uv C Claims Paid From 12101/04 to 12JI6104 Warrant No. Vendor Amount Description 67401 Peace Officers Council of CA 1,611.00 Dues Deduction 67402 PenValve 1,708.00 Plumbing Parts&Supplies 67403 PAC-Petroleum Analyzer Company, L.P. 1,516.33 Lab Parts&Supplies 67404 Q Air-Calif, Div. Pump Engineering 18.10 Restocking Fee 67405 Red Wing Shoes 613.08 Safety Shoes 67406 City of Seal Beach Finance Dept. 213.31 Water Use 67407 Shureluck Sales&Engineering 283.31 Mechanical&Plumbing Parts&Supplies 67408 Smardan Supply Company-Fountain Valley 707.47 Heavy-Duty Hoses 67409 Court Order 721.50 Wage Garnishment 67410 South Coast Air Quality Management Dist. 248.08 Annual Emission,Operation&Misc. Fees 67411 South Coast Air Quality Management Dist. 244.92 Annual Emission,Operation&Misc. Fees 67412 Southwest Air Balance Corp. 1,515.96 Professional Services-Air Flow Balance Testing 67413 Sperling Instruments, Inc. 52.80 Freight Charges 67414 State Water Resources Control Board 1.185.00 Annual NPDES Permit Fee 67415 SBC 1,341.87 Telephone Services 67416 SBC Long Distance 3,038.07 Long-Distance Telephone Service 67417 Thompson Industrial Supply, Inc. 8,671.03 Electrical Parts&Supplies 67418 TransCom USA 100.37 Mechanical Parts&Supplies 67419 The Unisource Corporation 425.54 Office Supplies 67420 United Parcel Service 88.38 Parcel Services 67421 United Way 245.00 Employee Contributions 67422 Verizon California 796.77 Telephone Services 67423 Waste Markets Corp. 16,039.59 Maint.Agreement-Grit&Screenings Removal&Digester Bed Mat'l. Removal 67424 Westmark Paint Co. 196.36 Painting Supplies 67425 Western Solutions, Inc. 1,465.00 Outside Lab Services 67426 Windows-On-Our-Wafers 250.00 TidePool Cruiser Appearance at Christening of Nerissa 11/06/04 67427 Court Order 597.50 Wage Garnishment 67428 Government Finance Officers Association 550.00 Review Fee-GFOA Achievement Award for Financial Reporting for FY Ending 6/30/04 67429 Voided Check - - 67430 EDT Aktiengesellschaft 25,769.58 Scrubber Foam Packing 67431 James C.Owens 1,209.28 Employee Computer Loan Program 67432 American Express 25,811.12 Purchasing Card Program, Misc.Supplies&Services 67433 ADS Environmental Services, Inc. 168,367.77 Professional Services J-73-2 67434 Black&Veatch Corporation 155,401.90 Engineering Services J-77,J-71-3, P2-85&5-58 67435 Brown&Caldwell 220,048.86 Professional Services 132-90 67438 Camp Dresser&McKee, Inc. 177,876.88 Engineering Service J-71-8 67437 E.I. Du Pont De Nemours and Company 28,984.00 Painting Malnt.Services MO 4-22-98 67438 Hill Brothers 49,827.65 Chemicals-Odor&Corrosion Control-Newport Trunkline 67439 HDR Engineering, Inc. 416,506.51 Professional Services P1-82 67440 JPL Compressor Service, Inc. 33,565.17 Repairs&Maintenance of No.2 Gas Compressor 67441 Kemiron Companies, Inc. 62,811.18 Ferric Chloride MO 9-27-95 67442 Orange County Water District 85,385.09 GAP Water Use 67443 Parsons Water&Infrastructure, Inc. 27,343.61 Professional Services J-35-1 67444 Partners Consulting Services 29,820.00 FIS On-Site Support-One World XE Migration Project 67445 Pioneer Americas, Inc. 181.231.92 Sodium Hypochlorite 67446 Polydyne, Inc. 43,428.84 Cationic Polymer MO 3-11-92 67447 So.Cal.Gas Company 33,297.09 Natural Gas H:%deptlfin%EXCEL.dta122041PSHARE1CUms Paid ReportI03-041CIalms Patel Report-121504.xls EXHIBIT A f;.ninn.. Paae 9 of 15 I111nnnI; Claims Paid From 12/01/04 to 12 I5104 Warrant No. Vendor Amount Description 67448 Sun Engineering Services, Inc. 43,102.00 Professional Services-Indoor/Outdoor Lighting Study 67449 Tule Ranch/Magan Farms 244,686.97 Residuals Removal MO 3-29-95 67450 U.S. Peroxide, L.L.C. 107,029,78 Odor&Corrosion Control Treatment for Coll.Sys.;Hydrogen Peroxide&Ferrous Chloride 67451 Adams/Mallory Construction Co., Inc. 42,558.00 Construction P2-79-1 67452 ARB, Inc. 177,847.36 Construction 7-39,7-41&11-22 67453 J F Shea Construction, Inc. 2,010,895.68 Construction J-77,J-35-2&J-71-3 67454 J R Filanc Construction 1,287,097.20 Construction P1-76 67455 Margate Construction, Inc. 327,766.92 Construction P1-37,J-67&Sump Pump Addition to Air Jumper lines 67456 Mike PrIlch&Sons 26.357.58 Construction 6-13-3 67457 Morrow-Meadows Corp 74,421.00 Construction P2-47-3 67458 Olsson Construction, Inc. 124.305.00 Construction P2-82 67459 Southern Contracting Company 67,824.00 Construction J-33-1 67460 Torrey Pines Bank 143.010.80 Construction P1-76, Retention 67461 Little Hoquiam Shipyard 1,040,000.00 Design&Purchase of Ocean Monitoring Vessel Nerissa 67462 Absolute Standards, Inc. 155.00 Lab Parts&Supplies 67463 Accutite Fasteners, Inc. 592.63 (5)One-Gallon Containers 67464 Ace Ergonomics 750.00 Ergonomic Workstation Evaluations 67465 Agilent Technologies, Inc. 2,310.12 Lab Parts&Supplies 67466 Airco Filter Service 328.62 Mechanical Parts&Supplies 67467 Airgas Safety 1,921.81 Safety Supplies 67468 Allen Instruments&Supplies 238.60 Traffic Vest&Misc.Supplies 67469 Allied Packing&Rubber, Inc. 64.29 Mechanical Supplies 67470 American Public Works Association 392.50 Notices&Ads 67471 American Red Cross 453.50 CPR Training&Miscellaneous Supplies 67472 Aquarium Doctor 105.44 Human Resources Aquarium Service 67473 Augusta Engineering 2,221.63 Training Registration 67474 Awards&Trophies Company 35.77 Plaques,Awards&Trophies 67475 ABB Automation Inc. 773.77 Repairs&Maintenance Services on Flow Meter 67476 AKM Consulting Engineers 3,934.11 Professional Services 7-39 67477 ASSE American Soc.of Safety Engineers 670.00 Human Resources Division Meeting Registration 67478 American Telephone&Telegraph Corp. 52.75 Telephone Service 67479 AT&T Wireless Services 3,034.29 Wireless Phone Services 67480 Basic Chemical Solutions, L.L.C. 22,699.07 Sodium Bisulfite&Sodium Hydroxide 67481 Battery Specialties 877.01 Batteries 67482 Ben Meadows Company, Inc. 256.99 Lab Parts&Supplies 67483 Biotechnical Services 354.00 Repairs&Maintenance on Lab Incubator Equipment 67484 BioMerieux Vitek, Inc. 558.65 Lab Supplies 67485 Burlington Safety Laboratory of CA,Inc. 445.50 Testing&Certification-Rubber Insulating Gloves 67486 Bush&Associates,Inc. 18,510.00 Professional Services J-77,6-13-1, FE04-36,7-41,7-39&7-23-1 67487 BC Wire Rope&Rigging 157.92 Mechanical Supplies 67488 BMC:Business Machines Consultants, Inc. 396.66 Multifunctional Copier Maintenance Agreement 67489 California Auto Collision 1,870.67 Repairs&Maintenance-V-497 67490 Cameron Environmental,Inc. 4.450.00 Equipment Rentals&Lease 67491 Carollo Engineers 2,134.00 Prof.Serv.-Coordinated Commercial Enterprise Study 67492 Center for Creative Growth 5,000.00 Professional Services-O&M Management Coaching 67493 Centre for Organization Effectiveness 7,312.50 Professional Services J-40-7 67494 City of Fountain Valley 21,224.16 Water Use H:Wept18n%EXCEL.dta=%APSHARE%CWms Paid Report%03-040alms Paid Report-121504As EXHIBIT A e„n+nn. Paae 10 of 15 I11,3MA 9 Claims Paid From 12101104 to 12115104 Warrant No. Vendor Amount Description 67495 Cole-Parmer Instrument Co. 117.52 Lab Parts&Supplies 67496 Columbia Analytical Services Inc. 600.00 Analysis of Wastewater, Industrial Wastewater&Biosolids 67497 CommCore Consulting Group 24,496.96 On-Site Training-Presentation Skills for(62)Employees 67498 Compressor Components Of California 5,045.50 Compressor Repair&Maint.Services 67499 Computer Protection Technology, Inc. 419.33 Computer Maint.Agreement 67500 Computer Sciences Corp. 8,770.80 Consulting&Lab Services-Assay Pilot Project 67501 Consolidated Elect.Distributors, Inc. 958.08 Electrical Supplies 67502 Consumers Pipe&Supply Co. 911.83 Plumbing Supplies 67503 Cooper Cameron Corportion 2,243.00 Engine Supplies 67504 Corporate Express 1,511.20 Office Supplies 67505 Cortech Engineering 1,109.72 Mechanical Parts&Supplies 67506 County of Orange 172.00 Maint.Agreement-Repair/Installation of Base, Handheld&Vehicle Radios 67507 County Wholesale Electric Co. 71.76 Electrical Parts&Supplies 67508 Crane Veyor Corp. 671.21 Repairs&Maintenance Service-Wire Rope Replacement 67509 Culligan of Orange County 40.00 Maint.Agreement-Con Gen Water Softener System 67510 Cyclus Envirosystems, Inc. 1.789.36 Professional Services-Anoxic Gas Flotation Process 67511 CCH, Inc. 169.55 Books&Publications 67512 CCP Industries 8,966.95 Janitorial Supplies 67513 CH2MHi11 3,339.67 Engineering Services J-40-7 67514 CMAA 380.00 Membership 67515 CPI International 1,208.25 Lab Parts&Supplies 67516 D&A Crane Hoist Electric 2,778.46 Electrical Repairs&Maintenance 67517 Daniel Company, L.L.C. 1,395.00 Mechanical Parts&Supplies 67518 Dapper Tire Co. 1,877.54 Truck Tires 67519 David's Tree Service 500.00 Tree Maint.Service 67520 Del Mar Analytical 506.00 Analysis of Biosolids and Wastewater 67521 Dell Computer 19,997.02 (1)Server&Accessories 67522 Dennis Greenberger,PH.D. 1.187.50 Professional Services-Fit for Duty Examination 67523 DigiPhoto 5.13 Photographic Services 67524 DEStech Publications, Inc. 159.00 Books&Publications 67525 Ecology Control Industries 3.813.32 Hazardous Waste Disposal 67526 Edinger Medical Group, Inc. 3.265.00 Medical Screenings 67527 Enchanter, Inc. 3,6C0.00 Ocean Monitoring&Outfall Inspection&Maintenance 67528 Environmental Engineering&Contracting 2,967.50 Professional Services-Fats,Oil&Grease(FOG)Study 67529 Environmental Resource Association 1,386.50 Lab Parts&Supplies 67530 Environmental Science Associate(ESA) 20.350.67 Professional Services J-40-10 67531 Excel Door&Gate Company, Inc. 697.00 Repair&Maintenance Services 67532 F H Pumps, Inc. 4,992.42 Submersible Sewage Pump 675M FedEx Corporation 275.74 Freight Services 67534 Fisher Scientific Company, L.L.C. 3,470.44 Lab Parts&Supplies 67535 Flat&Vertical, Inc. 235.00 Concrete Cutting 67536 Fluor Enterprises, Inc. 17,356.70 Engineering Services SP-81 67537 Forkert Engineering&Surveying, Inc. 2,287.50 Surveying Services-Various Capital Projects 67538 Fountain Valley Rancho Hand Wash 371.90 Truck Wash Tickets or Gasoline 67539 Franklin Covey 274.60 Office Supplies 67540 Fuller Truck Accessories 1,076.83 Truck Parts&Supplies 67541 Furling&Rigging Corp. 242.95 Port Supplies H:kk"Hn%EXCELdia1220%APSHARE%Cla}ma Paid Repart%03-04%Clalms Pall Report-121504.xle EXHIBIT A rinnlnn. Paae 11 of 15 1117I7M4 Claims Paid From 12/01/04 to 12116/04 Warrant No. Vendor Amount Description 67542 Ganahl Lumber Company 709.28 Lumber/Hardware 67543 Garratt-Callahan Company 7,081.34 Chemicals 67544 George T. Hall 727.31 Electrical Supplies 67545 Gerhardt's, Inc. 648.85 Mechanical Parts&Supplies 67546 Goldenwest Window Service 1,470.00 Window Cleaning Service-Spec.#990015 67547 Guarantee Recants Management 475.54 Off-Site Records Storage 67548 Haaker Equipment Company 79.86 Misc.Vehicle,Parts,Repairs&Service 67549 Harold Primrose Ice 74.00 Ice For Samples 67550 Harrington Industrial Plastics, Inc. 2,670.79 Plumbing Supplies 67551 Herb's Blackforest Bakery&Deli 28.50 Meeting Expenses 67552 Hoerbiger Service, Inc. 72.89 Mechanical Parts&Supplies 67553 Home Depot 534.27 Misc.Repair&Maintenance Material 67554 Hub Auto Supply 977.97 Vehicle Parts&Supplies 67555 Industrial Distribution Group 2,288.69 Locks,Tools&Paint Supplies 67558 Interstate Batteries of Cal Coast 2,680.66 Batteries for Vehicles&Carts 67557 InterNational Electrical Testing Assoc. 114.36 Books&Publications 67558 Iron Mountain 91.13 Bid Document Storage Fees P1-37 67559 J&B Auto Parts 54.76 Auto Parts&Supplies 67560 Jamison Engineering Contractors, Inc. 3,785.00 Repairs&Maintenance on 24-Inch Diameter Flange 67561 Jay's Catering 1,076.80 Meeting Expenses 67562 Jobs Available, Inc. 165.00 Notices&Ads 67563 Johnson&Associates,L.L.C. 500.00 Professional Services-Completion of Market Survey 2004 67564 Karcher Insulation, Inc. 4,804.00 Repairs&Maintenance-Pump Insulation 67565 Kelly Paper 968.95 Paper 67566 Key Instruments 264.80 Flow Meters 67667 Luedtke Crane Systems,L.L.C. 9W.00 Repairs&Maintenance Services-V-505 67568 LA Chemical 2,820.33 Sodium Blsulfite 67569 LA CAD Corporation 1,100.00 Training Registration 67570 LINJER 10,733.62 Professional Service-DART MO 9-22-99 67571 Machinery Trade Center 230.00 Repairs&Maintenance Services-Metal Shear 67572 Maintenance Products, Inc. 1,446.01 Mechanical Supplies 67573 Mandic Motors 74.50 Towing Services 67574 Mayer, Brown, Rowe&Maw, L.L.P. 5,000.00 Professional Services-Strategic Planning&Advocacy 67575 McCain Traffic Supply,Inc. 431.00 Vehicle Traffic Signal Parts 67576 McCrometer, Inc. 1,270.39 Repairs&Maintenance-Flow Meter 67577 McMaster-Carr Supply Co. 1,188.11 Mechanical,Paint&Safety Supplies&Tools 67576 Megger 894.03 Instrument Repairs&Maintenance Service 67579 Mission Uniform Service 59.49 Uniform Rentals 67680 Motion Industries, Inc.CA SS 7,785.16 Mechanical Parts&Supplies 67581 MDS Consulting 20,280.00 Prof.Services-Surveying Various Capital Projects 67582 Mine Safety Appliance Co. 133.91 Filter 67583 National Plant Services, Inc. 11,707.50 Vacuum Truck Services 67584 Business Training&Development Services 199.00 Training Registration 67585 City of Newport Beach 7.04 Water Use 67586 NRG Thermal Services,L.L.C. 1,630.07 Mechanical Parts&Supplies 67587 O C Tanner Recognition Company 1,895.84 Employee Service Award Program 67588 Office Depot Business Services Div. 1,656.06 Office Supplies H:%dWfinlEXCEL.dfa=%APSHARECaIma Peal ReporR03-04 0atma Paid Report-121504.)da EXHIBIT A Rnnw, Pace 12 of 15 1111MIUM a _ Claims Paid From 12/01/04 to 12115104 Warrant No. Vendor Amount Description 67589 OneSource Distributors, Inc. 171.51 Electrical Parts&Supplies 67590 Orange County Health Care Agency 5,201.25 Regulatory Fee-Sewage Spill&Response and Bacteriological Water Samples 67591 Orange Courier 19.02 Courier Services 67592 Oxygen Service Company 1,625.00 Specialty Gases 67593 OCB Reprographics 13,376.59 Printing Service-MO 1/26/00 67594 P.L. Hawn Company, Inc. 227.31 Electrical Supplies 67595 Pacific BellMloridCom 15.60 Telephone Service 67596 Pacific Mechanical Supply 30.64 Plumbing Supplies 67597 Parker Supply Company 4,381.12 Mechanical Parts&Supplies 67598 Pixelpushers, Inc. 14,090.00 Prof.Serv.-Design, Implement,Construct&Install a Corporate Intranet Site 67599 Powerflo Products,Inc. 1,678.91 Pump 67600 Praxair Distribution, Inc. 15.83 Demurrage 67601 Primary Source Office Furnishings, Inc. 4,735.88 Office Furniture 67602 Profit Techniques, Inc. 375.00 Professional Services-O&M Manager Coaching 67603 Progressive Business Publications 230.00 Books&Publications 67604 Prudential Overall Supply 3,439.77 Uniforms&Related Articles 67605 PCG Industries 1,275.00 Repair&Maintenance Services-High Rate Mixer Pump Shaft 67606 R. L.Abbott&Associates 3,000.00 Kem County Biasolids Consulting Services 67607 Rainbow Disposal Co. 5,633.14 Trash Removal 67608 Red Wing Shoes 137.92 Safety Shoes 67609 Ricks,Thomas E. 1,017.81 User Fee Refund Regarding Septic Tanks 67610 Ricoh Business System 1,623.90 Color Copier Lease 67611 Rosemount/Uniloc 1,938.50 Instrument Supplies 67612 Roto Rooter-N.O.C.#11 290.22 CCTV,Engineering Inspection&Unclogging of Sewer Laterals 67613 RPM Electric Motors 6,554.15 Repairs&Maintenance Service on Motors 67614 Safetycare, Inc. 284.46 Safety Training Video&Manual 67615 Sancon Engineering, Inc. 23,782.50 Construction-Manhole Rehabilitation Program&CCTV Inspection of Big Canyon Trunk 67616 Scientific Refrigeration 414.00 Refrigerator Repair 67617 Scottel Voice&Data., Inc. 2,284.80 Telephone System Maintenance 67618 Seaventures 8.166.42 Ocean Monitoring Vessel 67619 Selvey Enterprises, Inc. 744.49 EMS Certification Lapel Pins 67820 Shamrock Supply Co., Inc. 404.07 Janitorial Supplies 67621 Sigma-Aldrich, Inc. 654.94 Lab Parts&Supplies 67622 Snap-On Tools 131.09 Tools 67623 South Coast Air Quality Management Dist. 348.60 Annual Emission,Operation&Misc. Fees 67624 Southern California Edison 7,938.60 Power 67625 Southern Counties Lubricants 55.17 Grease 67626 Sperling Instruments, Inc. 300.00 Semi-Annual Calibration of Outfall Flow Meter 67627 Stanton Radiator 15,863.83 Radiator Repair 67628 Steven Enterprises, Inc. 479.72 Office Supplies 67629 Summit Steel 2,126.98 Metal 67630 Sunset Ford 6.83 Auto Parts&Service 67631 Sunset Industrial Parts 642.81 Mechanical Supplies 67632 SBC 1,037.53 Telephone Services 67633 SKC-West, Inc. 608.82 Safety Supplies 67634 SPEC Services, Inc. 14,976.38 Engineering Services J-33-1 67635 SPX Valves&Control 7,216.18 Valves KkieptAWEXCEL dia1220%PSHAREICIalffm Paid Report103-041CIalrtee Paid Report•121504.)ds EXHIBIT A fi,mnn� Pane 13 of 15 1111319MS Claims Paid From 12/01/04 to 12115/04 Warrant No. Vendor Amount Description 67636 Temtinix International 1,425.00 Pest Control 67637 The Walking Man, Inc. 525.00 Public Notice Printing&Mailing Services 7-41 67638 Thompson Industrial Supply, Inc. 5,784.08 Mechanical Supplies 67639 Tony's Lock&Safe Service&Sales 261.61 Locks&Keys 67640 Townsend Public Affairs 5,000.00 Legislative&Executive Advocate for Grant Funding 87641 Truck&Auto Supply, Inc. 1,382.44 Automotive Supplies 67642 US Filter/Polymetrics,Inc. 75.00 Service Agreement-DI Water Systems at Plants 1 &2 67643 Ultra Scientific 929.30 Lab Parts&Supplies 67644 Underground Service Alert of So.Calif. 2,692.20 Membership 67645 United Pacific Services, Inc. 14,624.11 Landscape Maintenance at Plants 1 &2 and Pump Stations 67646 United Parcel Service 16.00 Parcel Services 67647 United Pumping Service 3,631.24 Repairs&Maintenance Services-Clean Out of Anionic Polymer Tank 67648 Urban Alternatives 1,861.00 Community Relations Coaching-Replacement Ellis&Rocky Pt.Pump Sta. 67649 URM Contracting, Inc. 1,324.00 Repair Roof Leak at Dewatering Bldg. 67650 US Equipment Co., Inc. 1,927.54 Filters&Oil Coolant 67651 USC-FCCCHR 840.00 Training Registration 67652 Vapex, Inc. 4,541.92 Mechanical Parts&Supplies 67653 Verizon California 1,060.81 Telephone Services 67654 Vortex Corp. 407.40 Door Repair 67655 MCI Gig Harbor Group, Inc. 476.00 Lab Parts&Supplies 67656 VVVR Scientific Products Corporation 2,063.08 Lab Parts&Supplies 67657 The Wackenhut Corporation 5,500.84 Security Guards 67658 Waco Filter 427.91 Filters 67659 Wally Machinery and Tool Supply, Inc. 137.92 Mechanical Parts&Supplies 67660 Water 3 Engineering,Inc. 3,423.56 Engineering Services J-67 67661 WateReuse Association 5.000.00 Membership 67662 Waxie Sanitary Supply 59.51 Janitorial Supplies 67663 West-Lite Supply Company, Inc. 284.79 Electrical Supplies 67664 Western Switches&Controls, Inc. 3,509.25 Electrical Supplies 67665 Westport Aparatus DBA Breaker Supply 907.67 Electrical Parts&Supplies 67666 Wilson Supply, Inc.. 711.15 Mechanical Parts&Supplies 67667 WEF 915.00 Membership-Water Environment Federation 67668 Xerox Corp-OMNI 21.63 Fax Machine Maintenance 67669 Xerox Corporation 418.28 Fax&Copier Leases, Maintenance&Supplies 67670 Zee Medical 705.42 First Aid Supplies 67671 Califomla Bank&Trust 7,536.00 Construction J-33-1A,Retention 67672 Orange Community Bank 13,811.00 Construction P2-82, Retention 67673 Union Bank of Califomia 16,901.10 Construction 7-41,Retention 67674 Jeffrey L.Armstrong 1.030.21 Meeting/Training Expense Reimbursement 67675 Layne T.Baroldi 218.70 Meeting/Training Expense Reimbursement 67676 Brian Bingman 150.00 Meeting/Training Expense Reimbursement 67677 Patrick B.Carnahan 123.53 Meeting/Training Expense Reimbursement 67678 David M.Chafe 1,196.61 Meeting/Training Expense Reimbursement 67679 Michael J.Chester 1.125.47 Meefing/Training Expense Reimbursement 67680 James E.Colston 271.98 Meeting/Training Expense Reimbursement 67681 Hylan D. Harrison 130.00 Meeting/Training Expense Reimbursement 67682 Daniel R.Miranda 724.31 Meeting/Training Expense Reimbursement H:%dept%finlEXCEL.dla=%APSHARE%CWrns Paid RepoMM-04%CWrm Pmd Report-121504.)ds EXHIBIT A ewninn, Pane 14 of 15 I119MM Claims Paid From 12/01104 to 12115104 Warrant No. Vendor Amount Description 67683 Anissa C. Morgenstern 790.00 Meeting/Training Expense Reimbursement 67684 Jamiann M.Questa 155.98 Meeting/Training Expense Reimbursement 67685 Doug Rulison 386.19 Meeting/Training Expense Reimbursement 67686 Ken A.Sakamoto 650.75 Meeting/Training Expense Reimbursement 67687 Jeremy J.Saum 457.11 Meeting/Training Expense Reimbursement 67688 James,Jr.Spears 190.00 Meeting/Training Expense Reimbursement 67689 Yu-Li Tsai 581.87 Meeting/Training Expense Reimbursement 67690 Joseph F.Vallone 193.50 Meeting/Training Expense Reimbursement 67691 Donald B.Van Voorst 698.44 Meefing/fraining Expense Reimbursement 67692 Michael Vuong 170.00 Meeting/Training Expense Reimbursement 67693 County of Orange 43.00 Annexation Fees 67694 Local Agency Formation Commission 1,150.00 Annexation Fees 67695 Manulkin,Glaser,&Bennett 2,915.00 Legal Services Re Employee I.N.S. Filing Fees 67696 Orange County Sanitation District 2,066.43 Petty Cash Reimb. Total Accounts Payable-Warrants $ 15,921,632.81 Payroll Disbursements 36341 -36533 Employee Paychecks $ 446,758.76 Interim Payroll-Leave Payouts 36534-36638 Employee Paychecks 155,331.70 Biweekly Payroll 12/08/04 36639-36644 Employee Payrchecks 6.710.04 Retro Paychecks Re Rate Adjustments&Replacement Checks 105673-106220 Direct Deposit Statements 1,079,248.65 Biweekly Payroll 12/08/04 Total Payroll Disbursements $ 1,688,049.15 Wire Transfer Payments JP Morgan Chase Bank $ 51,758.20 November Interest Payment on Series 1993 Certificates of Participation JP Morgan Chase Bank 107,422.82 Societe Generale November Swap Payment on 1993 Series Certificates of Participation OCSD Payroll Taxes&Contributions 1,045,860.72 Biweekly Payroll 12/08/04 Total Wire Transfer Payments $ 1,205,041.74 Total Claims Paid 12/01/04-12/15/04 $ 18,814,723.70 H_Wept%finlEXCEL.dtaXM%PSHARE1Ctaims Paid Repar1103-04ICIaima Paid Report-121504.x1e EXHIBIT A finnlnm Paae 15 of 15 imi7nnr Claims Paid From 12/10/04 to 12/31/04 Warrant No. Vendor Amount Description Accounts Payable-Warrants 67697 Blue Cross of California $ 336,830.45 Medical Insurance Premium 67698 CRWQCB(CA Reg.Water Quality Ctrl. Bd.) 100.000.00 Administrative Civil Liability Complaint-Violation of NPDES Ocean Discharge Permit 67699 Delta Dental 55.962.20 Dental Insurance Plan 67700 Fortis Benefits Insurance Company 27,133.05 Long-Term&Short-Term Disability Ins. Premium 67701 Kaiser Foundation Health Plan 61,571.54 Medical Insurance Premium 67702 Southern Califomia Edison 127,885.82 Cen Gen Proportional Disqualification-Income Tax&Interest 67703 Synagro West, Inc. 262,619.85 Residuals Removal MO 3-29-95 67704 Woodruff,Spradlin&Smart 113.333.14 Legal Services MO 7-26-95 67705 ARB, Inc. 164,219.94 Construction 7-39,7-41 &11-22 67706 GeomAtrix Consultants, Inc. 42,858.57 Professional Services 1-2-4 67707 Airgas Safety, Inc. 271.81 Safety Supplies 67708 American Airlines 8,624.55 Travel Services 67709 Carl Warren&Co. 459.30 Insurance Claims Administrator 67710 Court Order 150.00 Wage Gamishment 67711 Consolidated Elect. Distributors, Inc. 273.48 Electrical Supplies 67712 Consumers Pipe&Supply Co. 195.62 Plumbing Supplies 67713 County of Orange 182.14 Wage Gamishment 67714 Court Trustee 454.49 Wage Gamishment 67715 Court Trustee 69.12 Wage Gamishment 67716 Voided Check - - 67717 Dell Computer 12.702.44 (5)Latitude Notebook Computers 67718 Department of Child Support Services 188.50 Wage Gamishment 67719 Dickson's, Inc. 344.80 Electrical Supplies 67720 Electra-Bond, Inc. 1,196.03 Repairs&Maintenance Service-Recoating High-Rate Mixer Pump 67721 Employee Benefits Specialists, Inc. 9,506.32 Reimbursed Prepaid Medical&Dependent Care 67722 Court Order 445.00 Wage Gamishment 67723 Franchise Tax Board 100.00 Wage Gamishment 67724 Hach c/o Ponton Industries 272.38 Lab Parts&Supplies 67725 Industrial Metal Supply 502.66 Metal 67726 Internal Revenue Service 300.00 Wage Gamishment 67727 Intemal Revenue Service 200.00 Wage Gamishment 67728 Intl. Union of Oper. Eng.AFL-CIO Local 501 3,887.42 Dues Deduction 67729 Kelly Paper 250.73 Paper 67730 Liebert Cassidy Whitmore 1,900.00 Annual Membership&Training Workshops-OC Employ. Relations Consortium 67731 Managed Health Network 967.14 Employees Assistance Program 67732 McMaster-Can-Supply Co. 444.19 Mechanical Parts&Supplies 67733 Mid-West Associates 4,147.81 Pump Supplies 67734 Midway Mfg.&Machining Co. 14,314.59 Mechanical Parts&Supplies-Gas Aftercooler 67735 Mission Uniform Service 652.17 Uniform Rentals 67736 Court Order 225.00 Wage Gamishment 67737 National Bond&Trust 2,485.36 U.S.Savings Bonds Payroll Deductions 67738 NEHA-National Environmental Health 194.00 Books&Publications 67739 The Orange County Register 3,359.80 Notices&Ads H:%depflfin%EXCEL.dta%2201APSHARE%Clalms Paid RepoAW3-04%Claima Paid Report-123104.xls EXHIBIT B e.,nln/U Paoe 1 of iriennnS Claims Paid From 12/16104 to 12131/04 Warrant No. Vendor Amount Description 67740 Orange Fluid System Technologies, Inc. 142.31 Plumbing Parts&Supplies 67741 Oxygen Service Company 65.65 Specialty Gases 67742 OCEA 635.61 Dues Deduction 67743 Peace Officers Council of CA 1,611.00 Dues Deduction 67744 PenValve 729.86 Plumbing Parts&Supplies 67745 Progressive Business Publications 299.00 Subscription 67746 Prudential Overall Supply 592.45 Uniforms&Related Articles 67747 Public Resources Advisory Group 6,000.00 Financial Advisory Services 67748 PVF Sales, Inc. 635.82 Plumbing Parts&Supplies 67749 Radio School, Inc. 95.00 FCC Filing Fee for Ship Radio Station License for Monitoring Vessel Nerissa 67750 Reliastar 10,010.95 Employee Basic Life&Managers'Insurance Premiums 67751 Scott Specialty Gases, Inc. 19.72 Demurrage 67752 Shureluck Sales&Engineering 38.04 Mechanical Parts&Supplies 67753 Smardan Supply Company-Fountain Valley 401.20 Plumbing Parts&Supplies 67754 Court Order 721.50 Wage Gamishment 67755 Snap-On Tools, Inc. 308.76 Tools 67756 Southern California Edison 133.43 Power 67757 Sparkletts 1,471.69 Drinking Water/Cooler Rentals 67758 State Board of Equalization 198.41 Underground Petroleum Storage Tank Fee 67759 Summit Steel 1,995.39 Metal 67760 SBC 16.62 Telephone Services 67761 Thompson Industrial Supply, Inc. 5,008.56 Motor&Mechanical Parts&Supplies 67762 Time Warner Communication 51.08 Cable Services 67763 Times Community News 400.00 Notices&Ads 67764 United Way 245.00 Employee Contributions 67765 UBS Financial Services, Inc. 17,398.16 Remarketing Fee-2000"A"Refunding Certificates of Participation 67766 Verizon California 149.78 Telephone Services 67767 Vision Service Plan-(CA) 9,624.36 Vision Service Premium 67768 Waxie Sanitary Supply 48.52 Janitorial Supplies 67769 Western States Controls 1,122.82 Electrical Parts&Supplies 67770 Xerox Corp-OMNI 78.00 Fax Machine Memory Upgrade 67771 Xerox Corporation 14,926.49 Fax&Copier Leases 67772 XESystems, Inc. 1,400.00 Full Service Maintenance-Xerox Synergix 67773 Court Order 597.50 Wage Garnishment 67774 Steve Anderson 530.00 Meeting/Training Expense Reimbursement 67775 Kienow Associates, Inc. 2,693.50 Legal Services 1-24 67776 UBS Financial Services, Inc. 19,710.45 Remarketing Fee-2000"B"Refunding Certificates of Participation 67777 Accounting Options, Inc. 27,503.56 Temporary Employment Services 67778 Basic Chemical Solutions, L.L.C. 31,631.44 Sodium Bisulfate&Sodium Hydroxide 67779 Black&Veatch Corporation 596,626.03 Engineering Services P1-102&P1-76 67780 Camp Dresser&McKee, Inc. 144,384.87 Engineering Service J-71-8 67781 CH2MHill 40,519.00 Engineering Services-Urban Runoff Study 67782 GHD, L.L.C. 38,110.50 Professional Services-Asset Management Program 67783 Irvine Technology Corporation 25.132.00 Temporary Employment Services H:%depflainlEXCEL.dta%220WPSHARE%Clair►ts Paid RepoAW03-o4%Clalms Paid Report-123104.xts EXHIBIT B finM7nM Page 2 of 8 IrleMnAq Claims Paid From 12/18104 to 12/31104 Warrant No. Vendor Amount Description 67784 IPMC c/o Parsons 797.998.00 Professional Services-Integrated Program Management 67785 Jamison Engineering Contractors, Inc. 368,284.75 Construction 2-41-3&Corrugated Metal Pipe Repairs in Truck Wash Area 67786 Kemiron Companies, Inc. 113,796.30 Ferric Chloride MO 9-27-95 67787 Lee&Ro, Inc. 203,090.58 Professional Services 5-49,5-50,5-51,5-52&132-47-3 67788 Malcolm Pimie, Inc. 177,584.95 Professional Services 132-80 67789 Midway City Sanitary District 282,339.05 Cooperative Projects Program-Rehabilitation of Manholes 67790 Ninyo&Moore Corporate Accounting 35,250.83 Professional Services-Materials Testing, Inspection&Geotechnical Engrg. 67791 NRG Thermal Services, L.L.C. 169,902.79 Professional Services J-79 67792 Petroleum Engineering, Inc. 47.412.80 Construction-Underground Storage Tank Pipe Replacement at Pit.2 67793 Pioneer Americas, Inc. 179.749.60 Sodium Hypochlorite 67794 Polydyne, Inc. 25.753.38 Cationic Polymer MO 3-11-92 67795 Psomas 31.194.00 Professional Services SP-15-Geographic Information System 67796 RemedyTemp, Inc. 34,316.80 Temporary Employment Services 67797 Tule Ranch/Magan Farms 275.460.99 Residuals Removal MO 3-29-95 67798 U.S. Peroxide, L.L.C. 52,964.64 Odor&Corrosion Control for Coll.Sys.; Hydrogen Peroxide&Ferrous Chloride 67799 Weston Solutions, Inc. 38,945.00 Lab Analyses of Benthic Infaunal for Cone Ocean Monitoring Program Permit 67800 ARB, Inc. 514,675.69 Construction 7-39&7-41 67801 Southern Contracting Company 931,410.00 Construction J-33-1 67802 Steve P Rados, Inc. 475,578.00 Construction 1-2-4 67803 Union Bank of California 52,842.00 Construction 1-2-4, Retention 67804 Union Bank of California 57,186.19 Construction 7-41, Retention 67805 A Biederman, Inc. 392.14 Electrical Supplies 67806 Absolute Standards, Inc. 555.00 Lab Parts&Supplies 67807 Advanced Sealing&Supply Co., Inc. 3,148.10 Mechanical Parts&Supplies 67808 Agilent Technologies, Inc. 318.40 Lab Parts&Supplies 67809 Airco Filter Service 185.93 Hydraulic Filter 67810 Airgas-West 316.90 Lab Parts&Supplies 67811 Allied Packing&Rubber, Inc. 3,635.54 Pump Parts&Supplies 67812 American Fildelity Assurance Company 254.90 Employee Cancer Insurance 67813 Arch Wireless 1,162.93 Paging Service-Airtime,Service&Equipment 67814 Argent Chemical Labs, Inc. 99.19 Lab Parts&Supplies 67815 ABB Automation, Inc. 355.49 Instrument Repairs&Calibration Services 67816 ACH Supply 92.62 Electrical Parts&Supplies 67817 American Telephone&Telegraph Corp. 23.36 Telephone Service 67818 AWSI 478.00 Department of Transportation Program Management&Testing 67819 Badger Meter, Inc. 489.66 Instrument Parts&Supplies 67820 Baker Tanks 1.120.00 Tank Rentals 67821 Bar Tech Telecom, Incorporated 214.91 Telephone Equipment 67822 Battery Specialties 601.76 Batteries 67823 Bermingham Controls 93.65 Plumbing Parts&Supplies 67824 Bush&Associates, Inc. 6,000.00 Professional Services 5-52&7-39 67825 BC Wire Rope&Rigging 1,655.49 Mechanical Parts,Supplies&Service 67826 BMC: Business Machines Consultants, Inc. 76.76 Service Agreement-Multifunctional Copier/Scanner 67827 Carollo Engineers 12,511.34 Professional Services P2-66 H:1dep11fin%EXCEL.dta%2201APSHARE%Clalms Paid Report103-041CIaims Paid Report-123104.xla EXHIBIT B fint7innr Pace 3 of 8 1/7anMG Claims Paid From 12/18/04 to 12131/04 Warrant No. Vendor Amount Description 67828 Cayman Chemical Company 414.00 Lab Parts&Supplies 67829 Charts, Inc. 276.82 Charts 67830 Chlorinators&Controls, Inc. 8,782.75 Instrument-Chlorine Residual Analyzer 67831 Coast Rubber Stamp, Mfg. 212.38 Office Supplies 67832 Cole-Parmer Instrument Co. 85.72 Pump Parts&Supplies 67833 Common Ground Alliance 100.00 Membership 67834 Communications Performance Group, Inc. 7,670.00 Prof.Serve.-Emergency Response Plan&Hazardous Energy Control Procedures 67835 Consolidated Elect. Distributors, Inc. 3,M.88 Electrical Supplies 67836 Consolidated Plastics Company 141.96 Lab Parts&Supplies 67837 Cooper Cameron Corp. 413.93 Engine Supplies 67838 Corporate Express 6,872.31 Office Supplies 67839 Cortech Engineering 711.06 Pump Supplies 67840 Counterpart Enterprises, Inc. 501.90 Mechanical Parts&Supplies 67841 County of Orange-Auditor Controller 140.00 Encroachment Permit 7-41 67842 County of Orange-Auditor Controller 1,085.00 Encroachment Permit 7-39 67843 County of Orange-Auditor Controller 35.00 Encroachment Permit 11-22 67844 County Wholesale Electric Co. 1,725.80 Electrical Parts&Supplies 67845 Cytec Industries 17,991.60 Anionic Polymer Spec. No.9798-18 67846 CASA(California Assoc.of San.Agencies) 14,020.00 Membership 67847 CASA(California Assoc.of San.Agencies) 375.00 Environmental Compliance Services Division Meeting Registration 67848 CMTA-California Municipal Treasurers 350.00 Accounting Division Meeting Registration 67849 C.S.M.F.O(CA Soc.of Mun. Fin.Officers) 264.00 Notices&Ads 67850 CWEA(CA Water Environment Assoc.) 185.00 Notices&Ads 67851 CWEA Membership 97.00 Membership-Calif.Water Environment Assoc. 67852 Dapper Tire Co. 714.84 Truck Tires 67853 David's Tree Service 7,725.00 Tree Maint.Service 67854 Dennis Greenberger, PH.D. 875.00 Professional Services-Fit for Duty Exam 67855 Dhatma Consulting 15,000.00 Prof.Services-Strategic Planning&EMT Development 67856 Doug Horwood Supply 320.75 Acroprint Time Recorder 67857 Dunn-Edwards Corporation 113.08 Paint Supplies 67858 DGA Consultants, Inc. 3,840.00 Professional Services-CCTV Data Evaluation&Support 67859 Eberhard Equipment 847.23 Equipment Repairs 67860 Edwin M. Perkins 5,259.37 Professional Service -Water Quality Compliance 67861 Enchanter, Inc. 5,100.00 Ocean Monitoring&Outfall Inspection&Maintenance 67862 Entech Instruments, Inc. 524.37 Lab Parts&Supplies 67863 Equapac 934.23 Hydrochloric Acid 67864 FedEx Corporation 70.61 Freight Services 67865 First American Real Estate Solutions 491.50 On-Line Orange County Property Information 67866 Fisher Scientific Company, L.L.C. 6,670.51 Lab Parts&Supplies 67867 Flo-Systems, Inc. 5,889.31 Pump Supplies 67868 Foodcraft Coffee&Refreshment Services 263.45 Meeting Supplies 67869 Forked Engineering&Surveying, Inc. 3,965.00 Surveying Services-Spill of 9/4/04&Various Capital Projects 67870 Fountain Valley Rancho Hand Wash 664.75 Truck Wash Tickets or Gasoline 67871 Franklin Covey 606.96 Office Supplies H:Wept%fin%EXCEL.dta12201APSHARE%Claims Paid Report\03-04%Ctalms Paid Report-123104.xls EXHIBIT B RnM1nM Paoe 4 of 8 111dnnP^ Claims Paid From 12/16104 to 12/31104 Warrant No. Vendor Amount Description 67872 Frasco Profiles 322.50 Human Resources Background Reporting Services 67873 Fred C.Gilbert Co. 477.26 Pump 67874 Fry's Electronics 105.43 Computer Supplies 67875 Garratt-Callahan Company 3,368.69 Chemicals 67876 George T. Hall 1,824.21 Electrical Supplies, Maintenance&Calibration Services 67877 Gieriich-Mitchell, Inc. 5,323.69 Mechanical Parts&Supplies 67878 Goldenwest Window Service 2,512.00 Window Cleaning Service-Spec.#990015 67879 Grainger, Inc. 1,031.72 Electrical Parts&Supplies 67880 Hach c/o Ponton Industries 669.69 Lab Parts&Supplies 67881 Hagemeyer North America 2.412.10 Prescription Safety Glasses 67882 Halcyon Press 34.90 Books&Publications 67883 Harold Primrose Ice 55.50 Ice For Samples 67884 Herb's Blackfomst Bakery&Deli 25.00 Meeting Expenses 67885 Home Depot 450.96 Misc. Repair&Maintenance Material 67886 Hopkins Technical Products 874.44 Pump Supplies 67887 Horizon Technology 394.03 Lab Parts&Supplies 67888 Hub Auto Supply 1.100.68 Vehicle Parts&Supplies 67889 Industrial Distribution Group 1,701.50 Mechanical Parts&Supplies 67890 Industrial Threaded Products, Inc. 1,343.44 Mechanical Parts&Supplies 67891 Interstate Batteries of Cal Coast 657.65 Batteries for Vehicles&Carts 67892 Invensys Systems, Inc. 372.77 Electrical Parts&Supplies 67893 Irvine Ranch Water District 33.04 Water Use 67894 J&B Auto Parts 314.94 Auto Parts&Supplies 67895 Jay's Catering 1,992.24 Meeting Expenses 67896 Johnstone Supply 165.83 Tube Cutters 67897 Karcher Insulation, Inc. 4,804.00 Replacement of Insulation Around Engines 3&4&Various Support Equipment 67898 Kforce Professional Staffing 3,878.98 Temporary Employment Services 67899 Kings County Farm Bureau 250.00 Membership 67900 L&N Uniform Supply Co. 43.40 Polo Shirts with District Logo for Ocean Monitoring Vessel Staff 67901 Labeltronix 1,433.30 Label Printer 67902 Lucci's Gourmet Foods, Inc. 226.67 Meeting Expense 67903 M.J.Schiff&Associates, Inc. 611.50 Professional Services-Corrosion Inspection&Soil Sample Drilling 67904 Mandic Motors 350.00 Towing Services 67905 McMaster-Carr Supply Co. 1,159.81 Mechanical Parts&Supplies 67906 McRay Industries, Inc. 5,021.15 Mechanical Parts&Supplies 67907 Michael Asner Consulting 11.904.93 Professional Services J-40-7 67908 MBC Applied Environmental Sciences 2,891.75 Professional Services-Aerial Kelp Region Surveys 67909 Mine Safety Appliances Company 435.12 Instrument Parts&Supplies 67910 National Fire Protection Association 135.00 Membership 67911 National Technology Transfer, Inc. 3,649.80 Training Registration 67912 Neal Supply Co. 955.70 Plumbing Supplies 67913 NetVersant of Silicone Valley 18,406.01 Security System Maintenance 67914 NetVersant of Southern California 8,873.27 Security System Maintenance 67915 New Horizons CLC of Santa Ana 320.00 Training Registration H:Weptlrin%EXCEL.d1a1220WPSHARE%Claims Paid Repor1W3-04%Caime Paid Report-123104.x1a EXHIBIT B nn"imn Pace 5 of 8 +11drinn5 Claims Paid From 12/16/04 to 12/31/04 Warrant No. Vendor Amount Description 67916 NASSCO/PACP 750.00 Training Registration 67917 O C Tanner Recognition Company 654.77 Employee Service Awards Program 67918 Office Depot Business Services Div. 1,575.40 Office Supplies 67919 OneSource Distributors, Inc. 160.00 Mechanical Parts&Supplies 67920 Orange County Water District 100.00 Joint GWRS Project J-36 67921 Orrick, Herrington&Sutcliffe 2,810.57 Professional Services-Arbitrage Rebate Calculations Re 1993 COPS 67922 Osterbauer Compressor 76.93 Mechanical Parts&Supplies 67923 Oxygen Service Company 1,992.57 Specialty Gases 67924 OCB Reprographics 10,743.37 Printing Service-MO 1/26/00 67925 OI Analytical 116.38 Lab Parts&Supplies 67926 P.L. Hawn Company, Inc. 292.03 Electrical Supplies 67927 Pacific Mechanical Supply 3,174.80 Plumbing Supplies 67928 Pacific Parts&Controls, Inc. 4,054.22 Electrical Supplies 67929 Parker Supply Company 7,388.82 Mechanical Parts&Supplies 67930 Parkhouse Tire Co., Inc. 172.43 Tires 67931 PenValve 331.04 Plumbing Parts&Supplies 67932 Perna Pure, Inc. 571.03 Filters 67933 Pixelpushers, Inc. 4,945.00 Temporary Employment Services 67934 Power Electra Supply Co., Inc. 32.66 Electrical Supplies 67935 Pre-Paid Legal Services, Inc. 433.55 Employee Legal Service Insurance Premium 67936 Primary Source Office Fumishings, Inc. 13,631.45 Trailer Cubicles&Office Modifications 67937 Propipe 2,168.80 CCTV Sewerline Inspections 67936 Prudential Overall Supply 819.37 Uniforms&Related Articles 67939 Pump Engineering 74.65 Pump Supplies 67940 Pumping Solutions, Inc. 14,142.19 Pumps 67941 PBS&J 16,147.35 Professional Services 3-52 67942 PRSA 375.00 Membership(Public Relations Society of America) 67943 PVF Sales, Inc. 1,101.49 Plumbing Parts&Supplies 67944 Pump Engineering Wor OAir California 2.748.82 Filters&Oil Coolant 67945 Red Wing Shoes 153.44 Safety Shoes 67946 Reliastar Bankers Security Life Ins. 11,081.43 Employee Life Ins. Prem.,Short-Term Disability&Cancer Ins. Payroll Deductions 67947 Restek Corp 1.009.37 Lab Parts&Supplies 67948 RBF Consulting 10,952.12 Engineering Services 2-41 67949 RM Automation c/o RM Controls 192.05 Instrument Supplies 67950 RPM Electric Motors 864.69 Motors 67951 RS Hughes Co, Inc. 108.41 Paint Supplies 67952 Sancon Engineering, Inc. 12,900.00 Pump Parts&Supplies 67953 Schwing America, Inc. 114.60 Mechanical Parts&Supplies 67954 Science Applications Intemational 591.30 Professional Services-Coastal Monitoring Buoy Deployment 67955 Self-Insurance Plans 4,776.65 State Workers'Compensation User Funding&Assessment 67956 Seton Name Plate 157.39 Half-Dome Safety Mirror 67957 Shamrock Supply Co., Inc. 2,714.98 Concrete&Oil Absorbent 67958 Shureluck Sales&Engineering 214.19 Mechanical Parts&Supplies 67959 Skalar, Inc. 122.73 Lab Parts&Supplies H:Weofin%EXCEL.dta122MPSHARE%Clalms Paid RepoR103-04%CWn*s Paid RepoA-123104.xls EXHIBIT B fin/91A!!r. Pace 6 Of 8 1/1dt7ft" Claims Paid From 12/16104 to 12/31/04 Warrant No. Vendor Amount Description 67960 SkillPath Seminars 199.00 Training Registration 67961 Smith-Emery Company 435.00 Soils,Concrete&Other Materials Testing 67962 Southern California Edison 31.69 Power 67963 Southern Counties Lubricants 365.17 Grease 67964 Sunset Ford 75.32 Auto Parts&Service 67965 Sunset Industrial Parts 533.25 Mechanical Supplies 67966 Technical Service Group,Inc. 1,381.60 SCADA System VAX Service Agreement 67967 SBC 1,514.12 Telephone Services 67968 SKC-West, Inc. 97.78 Safety Supplies 67969 SPEC Services, Inc. 11.982.18 Engineering Services J-33-1 67970 Voided Check - - 67971 Terminix International 55.00 Pest Control 67972 The Texacon Company 84.97 Mechanical Supplies 67973 The Walking Man, Inc. 1,975.00 Public Notice Printing&Mailing Services-1-2-4,5-52&7-36 67974 Thompson Industrial Supply, Inc. 5,669.12 Mechanical Parts&Supplies 67975 Time Motion Tools 193.54 Lighted Folding Magnifier&Misc. Parts&Supplies 67976 Townsend Public Affairs 5.000.00 Legislative&Executive Advocate for Grant Funding 67977 Traffic Control Service, Inc. 452.55 Traffic Safety Equipment Rental 67978 Truck&Auto Supply, Inc. 792.87 Automotive Supplies 67979 TCH Associates, Inc. 7,853.26 Lab Parts&Supplies 67980 Teksystems 14,530.00 Temporary Employment Services 67981 U.S Postal Service(AMS-TMS) 5,000.00 Postage 67982 U.S.Composting Council 665.00 Training Registration 67983 Voided Check - - 67984 Ultra Scientific 214.00 Lab Parts&Supplies 67985 United Parcel Service 1,654.85 Parcel Services 67986 United States Plastic Corp. 36.14 Lab Parts&Supplies 67987 US Airconditioning Distributors, Inc. 1,091.36 Motor 67988 The Vantage Group,L.L.C. 21,862.00 Temporary Employment Service 67989 Vapex, Inc. 2,291.00 Instrument Parts&Supplies 67990 Verizon California 1,583.31 Telephone Services 67991 Vortex Industries, Inc. 253.30 Door Repair 67992 VWR Scientific Products 7,070.52 Lab Parts&Supplies 67993 The Wackenhut Corporation 5,624.54 Security Guards 67994 Water Policy Report 650.00 Books&Publications 67995 Waxie Sanitary Supply 51.40 Janitorial Supplies 67996 Weather Services International 339.00 Software Maint. -Weather for Windows 67997 Wells Supply Company 4,711.34 Valves 67998 West-Lite Supply Company, Inc. 357.62 Electrical Parts&Supplies 67999 Western Switches&Controls, Inc. 6.186.15 Electrical Parts&Supplies 68000 Westport Aparatus DBA Breaker Supply 4,687.13 Electrical Parts&Supplies 68001 Wildlife Supply Co. 219.24 Lab Parts&Supplies 66002 Wilson Supply, Inc. 20.20 Plumbing Parts&Supplies 68003 WEF 177.00 Membership-Water Environment Federation H:Waptlfln%EXCEL.dta1220%APSHARE%Clalrm Pafd Report103-04SCIalrm Paid Report-123104.xls EXHIBIT B fi„n1n1U Paae 7 of 8 MAMMA Claims Paid From 12/16/04 to 12/31/04 Warrant No. Vendor Amount Description 68004 Xyon Business Solutions, Inc. 14,144.00 Temporary Employment Services 68005 Matt Adams 34.00 Meeting/Training Expense Reimbursement 68006 Marc A. Brown 115.00 Meeting/Training Expense Reimbursement 68007 James L. Burror 417.00 Meeting/Training Expense Reimbursement 68008 Donald R.Cleveland 60.00 Meeting/Training Expense Reimbursement 68009 James E.Colston 177.00 Meeting/Training Expense Reimbursement 68010 Randy E. Harris 542.70 Meeting/Training Expense Reimbursement 68011 Ingrid G. Hellebrand 136.06 Meeting/Training Expense Reimbursement 68012 Michelle R. Hetherington 933.70 Meeting/Training Expense Reimbursement 68013 Charles G. Lee 1,350.29 Meeting/Training Expense Reimbursement 68014 Richard McLaughlin 156.13 Meeting/Training Expense Reimbursement 68015 James C. Mullins 1,621.90 Meeting/Training Expense Reimbursement 68016 Gary A. Pons 765.00 Meeting/Training Expense Reimbursement 68017 Robert J.Taylor 696.65 Meeting/Training Expense Reimbursement 68018 Carolyn L.Thompson 121.61 Meeting/Training Expense Reimbursement 68019 Morris C.Ying 898.51 Meeting/Training Expense Reimbursement 68020 Michael I.Zedek 2,555.05 Meeting/Training Expense Reimbursement 68021 Chapman, Bruce 795.19 Employee Computer Loan Program 68022 County of Orange-Auditor Controller 1,380.00 Administrative Processing Fee for Supplemental Sewer Fee Adjustments 68023 County of Orange-Auditor Controller 915.00 Administrative Processing Fee for Supplemental Sewer Fee Adjustments 68024 Orange County Sanitation District 1,148.29 Petty Cash Reimb, 68025 Voided Check - - 68026 Brown&Caldwell 30,847.26 Professional Services P1-37 68027 Southern California Edison 96,865.37 Power Total Accounts Payable-Warrants $ 7,896,582.97 Payroll Disbursements 36645-36737 Employee Paychecks $ 157,135.68 Biweekly Payroll 12/22/04 36738-36745 Employee Paychecks 6,378.58 Merit Retros, One Non-Basebuilding Payment&Various Adjustments 106221 -106761 Direct Deposit Statements 1,129,701.63 Biweekly Payroll 12/22/04 Total Payroll Disbursements $ 1,293,215.89 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 810,842.71 Biweekly Payroll 12/22/04 U.S. Bank 399,206.11 December Interest Payment for Series 2000,A&B Certificates of Participation Total Wire Transfer Payments $ 1,210,048.82 Total Claims Paid 12/16/04-12/31/04 $ 10,399,847.68 H:Wept%fin%EXCEL.dta1220"PSHARE%Claims Paid Repod%03-041Cla1ms Paid Report-123104.xls EXHIBIT B fi�nlnlu Paae 8 of 8 111A1'M4 t BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 1/26/05 AGENDA REPORT Item Number Item Number 9a Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Bob Chenowith, Senior Engineering Associate SUBJECT: PROPOSED ANNEXATION NO. OCSD-46 — ELLIS ANNEXATION GENERAL MANAGER'S RECOMMENDATION (1) Receive and file petition from Russell Ellis requesting annexation of 1 .12 acres to Orange County Sanitation District in the vicinity of Santiago Canyon Road and Lolita Street, in the City of Orange; and (2) Adopt Resolution No. OCSD 05-01 , authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-46 — Ellis Annexation). SUMMARY • OCSD received a request from Russell Ellis to annex one (1) parcel which totals 1 .12 acres to OCSD. This parcel will be connected to an existing City of Orange eight-inch sewer on Santiago Canyon Road. • This parcel is already annexed to the City of Orange. The Ellis property has an existing two (2) bedroom home and another bedroom will be added to the existing house in the near future. • The City of Orange will collect the sewer inspection and OCSD sewer capacity fees for this home. Assessor parcel numbers 093-241-42. PROJECT/CONTRACT COST SUMMARY This annexation is in accordance with the terms of the negotiated agreement with the County of Orange regarding A.B.8 Tax Exchange for annexing properties. The Board of Directors approved this action and it became effective March 14, 1989. Under this Tax Exchange, OCSD does not receive a percentage of the basic levy, and instead, collects a higher annexation fee. The fee of $6,786.20 includes the following: LAFCO Processing Fee $ 1,150.00 OCSD Processing Fee 500.00 State Board of Equalization Processing Fee 350.00 CA Environmental Quality Act Filing Fee 43.00 OCSD Annexation Acreage Fee $ 4,743.20 TOTAL ANNEXATION FEE $ 6,786.20 PRIOR COMMITTEE/BOARD ACTIONS N/A BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CEQA FINDINGS Notice of Exemption will be filed. ATTACHMENTS Map and Legal Description RLC:sa WntglobaMgenda Draft ReportsUoint Boards\EllisAnnex.doc Revised: W0/01 Page 2 EXMIT"All OCSD46,ELLIS Annexation No.DA-04-19 To the Orange County Sanitation District 1 That portion of land situated in the unincorporated territory of the County of Orange, State of California, 2 being a portion of Lot 9,as described in Instrument No.2004000703030 O.R.,together with a portion of 3 Santiago Canyon Road(formerly Irvine Park Boulevard)as shown on Tract No.944,filed in Book 29 4 Page 41 of Miscellaneous Maps,all in the Office of the County Recorder of said County,more 5 particularly described as follows: 6 BEGINNING at an angle point in the existing boundary line of the Orange County Sanitation 7 District,as established by the"Sibley Annexation,No. 116"to the County Sanitation District No.7,said 8 point being the Southeasterly corner of said Annexation;a tie to said angle point being South 89°41'25" 9 East, 80.65 feet from the Orange County Horizontal Control Station GPS,No. 1047,having a coordinate 10 value(U.S. Survey foot)of North 2242071.995 and East 6099351.872 based upon the California 11 Coordinate System(CCS 83),Zone VI, 1983 NAD(1991.35 epoch OCS GPS Adjustment)as shown on 12 the Monument Record No. 1047 on file in the Office of the Orange County Surveyor, 13 THENCE following along said existing boundary line North 00'04'15"East, 150.18 feet to the 14 Southwesterly corner of the"Goodman Annexation,No. 151"to Sanitation District No.7; 15 THENCE leaving said"Sibley Annexation"boundary and following along said"Goodman 16 Annexation"North 89'40'40"East,294.89 feet to the centerline of Santiago Canyon Road(formerly 17 Irvine Park Boulevard); 18 THENCE leaving said"Goodman Annexation"and following along said centerline of Santiago 19 Canyon Road,South 19'11'30"East 161.23 feet,to the intersection of the prolongation of the southerly 20 line of aforementioned Lot 9 with the centerline of Santiago Canyon Road; 21 THENCE along the southerly line of Lot 9 and its prolongation,North 89'5545"West,348.07 feet 22 to the POINT OF BEGINNING. 23 24 25 26 27 Page 1 of 2 EXHIBIT "A" OCSD46,ELLIS Annexation No.DA•04-19 To the Orange County Sanitation Distract 1 Unless otherwise noted, all distances are ground and are based upon the California Coordinate System 2 (CCS 83),Zone VI, 1983 NAD(1991.35 EPOCH OCS GPS Adjustment).To obtain grid distances, 3 multiply the ground distances by 0.99996663. 4 5 The above-described parcel of land contains 1.12 acres,more or less. 6 7 All as shown on Exhibit`B"attached hereto and by this reference,made a part thereof. 8 This document was prepared by me or 9 10 under my direction and supervision. 11 12 Dated thiso9 day of 2004 �� LAF D SG ^� 5 pA e 9G 13 V`JOyY-1.c� j �P� ��0 14 Wanda Bale,L.S.7695 * 017695� My license expires 12-31-06 25 9 16 C� 17 This document does meet the approval of 18 the Orange County Surveyor's Office 19 Raymond L.Mathe,County Surveyor 20 �p LAND SU 21 Dated thi;VT*day of ,2004 v�i �oND �I`�0 22 " m 9 L.S.6185 23 Z.44L EXP.3.31-u ,} Ray nd L-Wfathe,County Surveyor 24 L.K 6185,My license expires 3-31-06 OF CALF 25 26 27 Page 2 of 2 EXHIBIT "B" SHEET 1 OF 1 0CSO-46 ELMS ANNEXATION No.OA-04-19 N TO THE OR COUNTY SANITATION OISTRICT LE= SCALE 1" a 50• ( ) RECORD PER ADJOINING ANNEXATION 50' 0' 50, 100, ANNEXATION BOUNDARY %iL A A• EXISTING ORANGE COUNTY SANITATION DISTRICT (O.C.S.D.) BOUNDARY. �Nh INDICATES OCS HORIZONTAL CONTROL STATION AS FILED % IN THE OFFICE OF THE ORANGE COUNTY SURVEYOR. ��. Sly Line 1 Goodman Annexation \ No.151 to C.S.D � No-7 �30 SURVEYOR'S STATEMENT N THIS PROPOSAL WAS PREPARED BY ME OR ko 20 (N89.40'40"E 294.89' I s UNDER MY DIRECTION. C.1b Q �(� NO ,C- '7 co ©� �l * i % WANDA BALE. LS. 7695 g`��pFAESG'9 m- 4 o q +� MY LICENSE EXPIRES 12/31/2004 Q A QD �_ 9Z1 Eip.12ta M4 0 i * NO.76% in �� IN T No. 2004000703030 O.R. c o al ZS'ly Line P.O.B. of S89.41'25"E N89.55'45"W 348.07' COUNTY SURVEYORS STATEMENT 80.65' 130 CPS TIE yo� THIS PROPOSAL DOES MEET THE APROVAL OF THE 60 ORANGE COUNTY SURVEYORS OFFICE. DATED THIS3.M+'^ DAY OF�r2004, ojr91J�ND S4q T2242071 No.1047 RAYMOND L MA E. COUNTY SURVEYOR v�ya�D LZs� m .995 UNLESS OTHERWISE NOTED, ALL DISTANCES ON THIS MAP ARE Mal GROUND AND ARE BASED UPON THE CALIFORNIA COORDINATE Notes: * EXP al E 6099351.872 SYSTEM (CCS83). ZONE V1. 1983 NAD (1991.35 EPOCH OCS A.P.N. 093-241-42 GPS ADJUSTMENT). R&WOND L ATHE, COUNTY SURVEYOR i1l dt= TO OBTAIN GRID DISTANCE, MULTIPLY GROUND DISTANCE This parcel of I and contains 6185. MY LICENSE EXPIRES 03/31/20DS OF Cp1lW BY 0.99996663. 1.12 Acres. more or less 2004-15-2.dgn 12/29/2004 9:30:44 AM BOARD OF DIRECTORS Meeting Date To Bd.of Dir. 1/26/05 AGENDA REPORT Item Number Item Number 9b Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Hardat Khublall, CIP Project Manager SUBJECT: OCTA SEWER RELOCATION PROJECTS, CONTRACT NO. 15-01 GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to execute a Reimbursement Agreement with the Orange County Transportation Authority (OCTA) to reimburse the Orange County Sanitation District (OCSD) for the design and construction support costs in connection with the OCTA Sewer Relocation Projects, Contract No. 15-01 providing for protection of existing OCSD sewers throughout the length of the OCTA SR-22 Widening Project, for OCSD's actual staff and administrative costs. SUMMARY • This Reimbursement Agreement provides for OCTA to reimburse OCSD for staff costs involving plan checking, inspection, and construction support of the OCTA sewer relocation project and portions of overall OCTA SR-22 Widening Project. • OCSD will submit quarterly invoices to OCTA for payment. PRIOR COMMITTEE/BOARD ACTIONS None PROJECT/CONTRACT COST SUMMARY Per this agreement. all OCSD expenses will be reimbursed. BUDGET IMPACT This item has been budgeted.(Line item: Contract No.15-01, FY 04/05, Section 8, Page 49) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) OCSD has included the OCTA Sewer Relocation Projects, Contract No 15-01, in the 20004/05 Capital Improvement Program Budget in the amount of $300.000 as a place holder to account for reimbursable expenses incurred by OCSD staff while supporting the OCTA SR-22 Widening Project. Page 1 Revised 06I04/03 ADDITIONAL INFORMATION OCTA contacted OCSD more than a year ago asking OCSD to relocate the existing 30-inch VCP sewer in Metropolitan Drive, an existing 45-inch RCP sewer in Lewis Street, and an existing 45-inch RCP sewer in Trask Avenue ahead of the OCTA SR-22 Widening Project. Those sewers were anticipated to be in conflict with the SR-22 Widening Project. After extensive design and existing utility investigation. it has been determined that OCTA will contract out and pay for the work to design and construct the relocation of approximately 1,260 feet of 30-inch OCSD sewer along Metropolitan Drive and that all of the other twelve OCSD sewer crossings of the SR-22 freeway will be protected in place by OCTA during the SR-22 Widening Project without the need for relocation. The District frequently cooperates with other public agencies and has entered into similar agreements in the past successfully. ALTERNATIVES None. CEQA FINDINGS The SR-22 Widening Project Environmental Impact Report addresses the environmental concerns on this project. ATTACHMENTS None. HK:jo:lc H:\ntglobal\Agenda Draft Reports\Joint Boards\SR-22 Widening Project Tustin Reimbursement AR 022305.doc Page 2 P DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, December 15, 2004 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, December 15, 2004 at 5 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: OTHERS PRESENT: Thomas L. Woodruff, General Counsel Directors Present: Joe Forbath Steve Anderson, Chair Don Hughes Carolyn Cavecche, Chair, OMTS Committee Roy Moore, Chair, FAHR Committee STAFF PRESENT: Tod Ridgeway, Chair, PDC Committee Blake Anderson, General Manager Jim Silva, County Supervisor Bob Ghirelli, Director of Technical Services David Ludwin, Director of Engineering Carol Beekman, Director of Communications and Directors Absent Administrative Services Jim Ferryman, Vice Chair Gail Garrett, Committee Secretary Layne Baroldi, Legal & Regulatory Affairs Liaison (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no comments by any member of the public. (4) RECEIVE, FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the November 17, 2004 Steering Committee meeting were approved as drafted. Minutes of the Steering Committee Page 2 December 15, 2004 (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Steve Anderson reported on his trip to Washington D.C. to attend the Califomia Congressional meetings. He met with Congresswoman Loretta Sanchez and her staffman Christopher Cox. OCSD will receive an appropriation of$800,000 for secondary treatment. SAWPA received $300,000 and GWRS $2.5 million which, when added to other grants we have received, brings the GWRS grant total to $92.5 million. Chair Anderson will be presenting resolutions to Shirley McCracken, John Collins, Anna Piercy, Patricia Bortle and Paul Walker, commending them for their many years of service to the District. Directors Mike Duvall and Carolyn Cavecche were appointed voting members to the GWRS Committee, and Jim Ferryman, Don Bankhead and Lang Crandall as alternates 1, 2, and 3 respectively. City of Anaheim appointed Council Member Harry Sidhu and City of Cypress has appointed Phil Leubben to the OCSD Board of Directors. Chair Anderson and Supervisor Jim Silva will be attend the CASA conference in Palm Springs next month, as will Bob Ghirelli and Jim Colston. The three Standing Committees will not meet in January. The Steering Committee will meet on January 26, 2005 at 5:00 p.m. There will be a 15-minute meet-and-greet to welcome new Directors at 7:00 p.m. prior to the Board meeting,which will begin at 7:15 p.m. The meeting schedule for February was announced. Chair Anderson said he would seek a resolution to adjourn the Board meeting in memory of Director Dick Edgar, who was a past Board Chair, and provided leadership to the District for most of the 1980's. He represented the City of Tustin where he was on the city council for over 10 years. (6) REPORT OF THE GENERAL MANAGER A. OCBC Executive Committee General Manager Blake Anderson announced he has been elected to the Orange County Business Council's Executive Committee to serve in the capacity of a Vice Chair for Public Infrastructure. A memorandum from Mr. Anderson to the Steering Committee was handed out, outlining OCBC's 2005 objectives. The Directors approved his request. B. Huntington Beach Conference and Business Visitors Bureau Mr. Anderson reported the HBCBVC request for the Sanitation District to invest in an advertising campaign was considered by the FAHR Committee last Wednesday night. Carol Beekman, Director of Communications and Administrative Services, gave an overview of the sequence of events and briefed the Directors on the outcome of the FAHR meeting. General Counsel issued an opinion that was shared with the FAHR Committee that the proposal, as written, would constitute an unlawful gift of public funds. Dr. Robert Ghirelli, Director of Technical Services, had provided an opinion that the HBCVB proposal would not qualify for the RWQCB's supplemental Minutes of the Steering Committee Page 3 t December 15, 2004 environmental projects which are designed to build facilities that improve water quality or restore habitat. Ms. Beekman handed out copies of a letter to Doug Traub, President and CEO of HBCVBA, informing him of the FAHR committee's direction to continue with the planned efforts for community outreach and outlining the considerable public outreach efforts the District has conducted in the past to promote education and ensure the public knows our coastal water is safe and clean. C. OCLS IV The fourth annual Orange County Leadership Symposium begins mid-day Friday, January 141h and ends mid-day Sunday, January 161h at UCLA's Conference Center in Lake Arrowhead. The flyer and registration form is in tonight's agenda packages. D. Right of Way Issue Mr. Anderson alerted the Directors of the right-of-way issue that is developing in Costa Mesa and gave handouts of a map of the area which is impacted. Twenty-seven homeowners have been given formal notice to remove the encroachments from District's property. Mr. Anderson noted that it will take some time for the property owners to comply, and the District is willing to work with them. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff reported that pending and anticipated litigation will be discussed in closed session, with regards to SAWPA, Bushard trunk, Yakima, and RWQCB Administrative Civil Liability Complaint. (8) DISCUSSION ITEMS (Items A-C) A. Date and time for New Board Orientation: Three dates for the New Board Orientation were put forth for discussion and consideration by the Steering Committee. The Directors approved Wednesday, February 16, 2005 from 5:00—7:00 p.m.for the New Board Orientation. Director Carolyn Cavecche noted that, in Item 12(d) Dr. Stephen Weisberg, Executive Director of SCCWRP, was to present a report prior to the Board's consideration of the item. Dr. Ghirelli responded that Dr. Weisberg is out of town and his associate had a personal commitment this evening. A report will be provided at a later date. B. The three Standing Committees will not be meeting in January. C. The agenda items scheduled to be presented to the Board at tonight's meeting were reviewed. (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY There was no other business discussed. i Minutes of the Steering Committee 4- Page 4 1 December 15, 2004 (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (12) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, January 26, 2005 at 5 p.m. There will be a 15-minute meet-and-greet gathering on Wednesday, January 26, 2005 beginning at 7 p.m. The next Board Meeting is scheduled for Wednesday, January 26, 2005 at 7:15 p.m. (13) CLOSED SESSION The Committee convened at 5:55 p.m. in Closed Session, pursuant to Section 54956.9 and Section 54956.9(b), to discuss pending litigation and anticipated litigation. Minutes of the Closed Session are on file with the Board Secretary. Confidential Minutes of the Closed Session held by the Steering Committee have been prepared in accordance with Government Code Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. A report of the recommended actions will be publicly reported at the time the approved actions become final. At 6:50 p.m., the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:50 p.m. Submitted by: Gail Garrett Steering Committee Secretary H.1deptlagendMSteering Committee1200411 20411 2 1 504 SC Minutes FINAL.5.doc FAH R COMMITTEE Meeting Date To Bd. of Dir. 1/26/05 AGENDA REPORT Item Number Item Number 12 Orange County Sanitation District FROM: Gary Streed, Director of Finance/Treasurer Originator: Michael White, Controller SUBJECT: TREASURER'S REPORT FOR THE MONTH OF DECEMBER 2004 GENERAL MANAGER'S RECOMMENDATION Receive and file Treasurer's Report for the month of December 2004. SUMMARY Pacific Investment Management Co. (PIMCO), serves as the District's professional external money manager, and Mellon Trust serves as the District's third-party custodian bank for the investment program. Some funds are also deposited in the State of California Local Agency Investment Fund for liquidity. The District's Investment Policy. adopted by the Board, includes reporting requirements as listed down the left most column of the attached PIMCO Monthly Report for the "Liquid Operating Monies" and for the "Long-Term Operating Monies" portfolios. The District's external money manager is operating in compliance with the requirements of the Investment Policy. The portfolio contains no reverse repurchase agreements. As shown on page 2 of the attached PIMCO's Performance Monitoring and Reporting Report for the Long-Term Operating Monies, there is one investment policy compliance exception. It pertains to the holding of one security within PIMCO's Long-Term Operating Monies Portfolio that had an acceptable rating at the time of purchase but has since fallen below the minimum rating allowed by the investment policy. The District's investment policy requires a minimum rating of A3 by Moody's or A- by S&P, with at least a BBB rating in the event of a split rating, at the time of purchase. The rating exception pertains to the holding of a United Airlines (UAL) Asset Backed Security with a par value of $1.6 million, representing 0.43 percent of the portfolio holdings, whose rating from Moody's has fallen several times, from A3 to BA1, then to BA3, B3, B, and finally to CA. Likewise. the rating from Standard & Poor's has also fallen several times, first from A- to BBB, then to BB, then to B+, B-, and finally to CCC+. Both rating agencies have since withdrawn their ratings, Moody's in February 2004 and Standard & Poor's in June 2004. Although these ratings are less than what is required at the time of purchase, PIMCO believes, based on the financial strength of UAL and the underlying collateral of the security, that the District would suffer an unwarranted loss if the security was sold at this time. H ldeptlagenda%Board Agenda Reports12005 Board Agenda&Agenda Reports10105111em 12 Treasurer's Report doc Page 1 The District's investment policy does not require any action because of "credit watch" notices or the decline in credit standing. However, PIMCO will continue to monitor the credit for this security very closely. Historical cost and current market values are shown as estimated by both PIMCO and Mellon Trust. The District's portfolios are priced to market (''mark-to-market") as of the last day of each reporting period. The slight differences in value are related to minor variations in pricing assumptions by the valuation sources at the estimate date. BUDGETIMPACT ❑ This item has been budgeted. (Line item: ® Not applicable (information item) ADDITIONAL INFORMATION Schedules are attached summarizing the detail for both the short-term and long-term investment portfolios for the reporting period. In addition, a consolidated report of posted investment portfolio transactions for the month is attached. The attached yield analysis report is presented as a monitoring and reporting enhancement. In this report, yield calculations based on book values and market values are shown for individual holdings, as well as for each portfolio. Mellon Trust, the District's custodian bank, is the source for these reports. Transactions that were pending settlement at month end may not be reflected. Also provided is a summary of monthly investment balances and transactions within the State of California Local Agency Investment Fund (LAIF). These reports accurately reflect all District investments and are in compliance with the District's Investment Policy and previous requirements of California Government Code Section 53646. Government Code Section 53646 mandated that annual investment policies and quarterly reports be rendered to the legislative body. A132853, which was signed on September 29, 2004, amends Government Code Section 53646 to remove the requirements; the rendering of these documents is optional. Although the Annual Investment Policy and Monthly and/or Quarterly Reports are no longer required, we believe it prudent to continue providing the legislative bodies with these documents. In addition, Government Code Section 53607 has not been repealed that requires an annual delegation of investment authority to the Treasurer and the submission of reports that include investment transactions by month. Sufficient liquidity and anticipated revenues are available to meet budgeted expenditures for the next six months. The table on the following page details the book balances of the District's investment accounts at month-end. A graphical representation of month-end balances is shown on the attached bar chart. H ldeptlagendatBoard Agenda Reports12005 Board Agenda&Agenda Reportst0105\Item 12 Treasurer's Report doc Page 2 v Book Balances Estimated Investment Accounts December 31,2004 Yield(%) State of Calif. LAIF $31,508,111 2.13 Union Bank Checking Account 3,465,420 1.73(1) PIMCO—Short-term Portfolio 85,242,588 2.50 PIMCO-Long-term Portfolio 364,563,526 3.43 Petty Cash 4,000 N/A TOTAL S484 783 645 3.17 Debt Service Reserves w/Trustees $62,787,165 3.18 (1) This is the annualized yield for the month of November. The December annualized rate was not available as of the date of this report. ATTACHMENTS 1. Graph of Monthly Investment Balances by Type — Last Six Months 2. Investment Transactions and Balances in the State Local Agency Investment Fund 3. PIMCO Monthly Investment Recap & Yield Analysis Report 4. PIMCO Performance Monitoring Report— Liquid Operating Monies 5. PIMCO Performance Monitoring Report— Long-Term Operating Monies 6. Mellon Trust Asset Summary by Asset Type with Sectors — Liquid Operating Monies 7. Mellon Trust Asset Summary by Asset Type with Sectors — L-T Operating Monies 8. Mellon Trust Yield Analysis Report 9. Mellon Trust Asset Detail — Consolidated 10.Mellon Trust Transaction Detail - Consolidated MW:bg Wdeptlagenda%Board Agenda ReportsVO05 Board Agenda 8 Agenda Repons%olo5wtem 12.Treasurer•s Report.doc Page 3 Monthly Investment Balances by Type- Last Six Months $700,000,000 $600,000,000 $500,000,000 - $400,000,000 $300,000,000 - $200,000,000 $100,000,000 $0 July August September October 2004 November December 2004 2004 2004 2004 2004 O PIMCO- Long-term m PIMCO-Short-term ®COP Debt Reserves M LAIF El Bank Accts M Petty Cash 9 Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund December 31, 2004 Par Value Book Value Market Value Rate Yield Balance December 1, 2004 $26,408,111 $26,408,111 $26,408,111 2.13 2.13 Deposits: 12/10/2004 18,700,000 18,700,000 18,700,000 2.13 2.13 12/21/2004 12,800,000 12,800,000 12,800,000 2.13 2.13 Total Deposits 31,500,000 31,500,000 31,500,000 2.13 2.13 Withdrawals: 12/2/2004 (3,700,000) (3,700,000) (3,700,000) 2.13 2.13 12/3/2004 (4,000,000) (4,000,000) (4,000,000) 2.13 2.13 12/8/2004 (2,600,000) (2,600,000) (2,600,000) 2.13 2.13 12/16/2004 (3,800,000) (3,800,000) (3,800,000) 2.13 2.13 12/20/2004 (3,900,000) (3,900,000) (3,900,000) 2.13 2.13 12/22/2004 (2,700,000) (2,700,000) (2,700,000) 2.13 2.13 12/30/2004 (5,700,000) (5,700,000) (5,700,000) 2.13 2.13 Total Withdrawels (26,400,000) (26,400,000) (26,400,000) 2.13 2.13 Balance December 31, 2004 $31,508,111 $31,508,111 $31,508,111 2.13 2.13 P I M C O January 14, 2005 Mr. Mike White, CPA Controller Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Dear Mike: The following is a description of events in the bond markets during the month of December in addition to an analysis of the strategies undertaken in the Orange County Sanitation District's Long-Term and Liquid portfolios over the period. Also included is a section on our outlook and preferred strategies to be pursued in your portfolios during the coming months. Bond Market Recap: U.S. Treasury yields fell in December following weaker than expected economic data. A strengthening dollar and disappointing job numbers pushed Treasury yields lower in the first half of the month. In the second half of the month, Treasury yields rebounded due to signs of inflationary pressure, a jump in consumer confidence and strong third quarter GDP growth, in the third quarter. Federal Open Market Committee (FOMC) policy makers increased the benchmark Fed funds rate by 25 basis points to 2.25 percent, representing the fifth rate hike since June 2004, and restated their plan to tighten at a "measured" pace. The yield on the benchmark 10-year Treasury note finished the month at 4.22 percent, 13 basis points lower than the prior month; Treasuries gained 0.99 percent in total return. On a duration-adjusted basis, TIPS outperformed their nominal counterparts, with the Lehman Brothers Global Real U.S.TIPS index returning 1.74 percent for the month. Mortgage-backed securities returned 0.70 percent, exceeding Treasuries by 13 basis points after adjusting for duration. The credit sector, represented by the Lehman Credit Index, returned 1.31 percent, outperforming similar-duration Treasuries by 30 basis points for the month. December began with a weak employment report, indicating that the economy created only 112,000 new jobs in November, far lower than the consensus estimate of 200,000. However, the unemployment rate declined to 5.4 from 5.5 percent. Consumer confidence rose in December, with the Conference Board's index reaching its highest level in five months. Surveyed consumers perceived jobs as plentiful and business conditions to be good, and more people are planning to v Mr. Mike White, CPA January 14, 2005 Orange County Sanitation District Page 2 buy a home, automobile or major appliances in the near term. On the inflation front, consumer prices rose 0.2 percent in November. Energy prices rose, despite the decline in crude oil prices and expectations for a decline in gasoline prices. Excluding food and energy items, core inflation also increased 0.2 percent, placing the annual rate at 2.2 percent. Lastly, the Bureau of Economic Analysis revised third quarter GDP growth up to 4 percent, outpacing the 3.3 percent growth rate from the second quarter. Increases in consumer expenditures, business spending on equipment and software, government spending and exports contributed to growth, offset by smaller inventory building than earlier estimated. Treasury yield changes during the month of December are summarized as follows: • 3-month bills: -1 basis point to 2.21% ■ 6-month bills: +14 basis points to 2.58% ■ 2-year notes: +7 basis points to 3.07% ■ 5-year notes: -8 basis points to 3.61% ■ 10-year notes: -13 basis points to 4.22% ■ 30-year notes: -18 basis points to 4.83% Performance Attribution: Long-Term Portfolio The Long-Term portfolio that PIMCO manages on behalf of Orange County Sanitation District returned 0.32% on a total return basis for the month of December, lagging the Merrill Lynch 1-5 year Government Corporate Index by 7 basis points. The following points summarize returns for the month ended December 31: • The Long-Term portfolio lagged the benchmark by 7 basis points for the month. • For the twelve-month period, the Long-Term portfolio returned 2.31%,outperforming the benchmark by 55 basis points. • Portfolio duration, below the index, was largely neutral for monthly performance as interest rates increased for short maturity issues yet decreased for intermediate and longer maturities. • Yield curve positioning similar to that of the index was neutral for performance. • An underweight exposure to corporates was negative for performance, as corporates outperformed Treasuries on a duration-adjusted basis. • Exposure to mortgage-backed securities was positive for relative performance as the sector outperformed Treasuries on a duration-adjusted basis. • Substituting Treasury Inflation Protected Securities for nominal Treasuries was positive for performance as short and intermediate TIPS outperformed their nominal counterparts during the month. Mr. Mike White, CPA January 14, 2005 Orange County Sanitation District Page 3 Liquid Portfolio The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District generated a total return of 0.18% during the month of December, performing in line with the 3- month Treasury Bill Index. The following points summarize returns for the period ending December 31: • The Liquid portfolio performed in line with the benchmark for the month. • For the twelve-month period, the Liquid portfolio returned 1.32%, outperforming the benchmark by 8 basis points. • Use of higher yielding securities such as commercial paper and short-term notes contributed to performance. Outlook and Strateey: Global growth will slow over the next year as the U.S. recovery cools and Europe and Japan prove unable to pick up the slack. Higher unit labor costs and a weaker dollar will create some inflationary pressure, but lingering overcapacity worldwide will limit this effect over a cyclical time frame. The yield on the benchmark 10-year Treasury will range between 4 and 4.5 percent, with the main risk to this forecast being a breakout of 25 basis points on the high side. Important aspects of our outlook are: ■ Headwinds to U.S.Growth—Slack in the U.S. economy is closing but growth will be constrained by: 1) removal of accommodative monetary and fiscal policy, as the Federal Reserve tightens and fiscal stimulus fades; 2) a moderating housing cycle; 3) relatively modest corporate investment; and 4)a lack of pent-up consumer demand combined with a heavy consumer debt burden. • Vendor Financing for U.S. Consumption — With its low savings rate, the U.S. must rely on foreign lenders, mainly Asian central banks, to finance its prodigious consumption and the trade deficit that accompanies it. PIMCO is skeptical that China and Japan will continue to provide this "vendor financing" on agreeable terms over the long run. In the short run, however,the game will go on, since it keeps interest rates low for U.S. borrowers and mitigates appreciation of the Chinese and Japanese currencies vs. the dollar, which would hurt export-led growth in those countries. • Europe and Japan to Lag—Europe will not add much to global growth. The European Central Bank has been reluctant to cut rates to stimulate domestic demand; exports are vulnerable to a strong euro; and business and consumer confidence remain weak. Japan's contribution to growth will also lag that of the U.S. Japan's export-led recovery will be constrained as China moves to cool down its economy to curtail inflation. ■ Emerging Markets Add Stability—After painful currency and financial crises in the late 1990s, many EM economies opted for reform and restructuring. The results have been impressive: an increasing share of global GDP, accumulation of record currency reserves and growing trade surpluses. D Mr. Mike White, CPA January 14, 2005 Orange County Sanitation District Page 4 The global economy looks stable, with prospects for modest growth, low volatility in financial markets and range-bound interest rates. PIMCO remains concerned, however, about a tilt in the direction of either deflation or inflation. The uncertain pace of investment and hiring could tilt the balance of risks toward deflation. On the other hand, monetary policy remains simulative despite the beginning of Fed tightening. Easy money combined with higher commodity prices and dollar weakness could swing the economy back in the other direction. A prudent approach in this environment is to stay defensive and well diversified to avoid negative consequences of being on the wrong side of any market dislocation. Key strategies will include: ■ Tactically Flexible Interest Rate Strategies — Rates are more likely to rise than fall over a secular, or three to five year time frame. We will therefore be wary of extending duration beyond benchmark levels. At the low end of our forecasted interest rate range, we will target duration about 0.5 year below the index and then shift toward a neutral posture as rates move back up. ■ Structural Yield Curve Exposure — While short/intermediate maturities are close to full valuation, we will retain a modest structural emphasis here. Because the short/intermediate portion of the yield curve remains relatively steep, this "bulleted" posture can provide extra yield with less price risk than a "barbell," or mix of short and long term bonds. In addition, longer maturities would be more vulnerable if the economy tilted toward inflation. ■ Retain Current Exposure to Core U.S. Sectors but Do Not Increase Allocations — Tight corporate yield premiums offer too little reward to bear the risk of negative credit events if the economy were to slow. While mortgage-backed bonds offer structural yield advantage and high credit quality, they are fully valued for now as a result of unusually heavy demand from banks, which are taking advantage of mortgages' attractive"carry"in a steep yield curve environment. ■ TIPS as an Out-of-Index Alternative—Better risk/reward trade-offs can be found outside of core sectors. At current break-even inflation levels, real return bonds continue to provide an effective hedge against secular inflation risk. They are also less volatile than nominal bonds in a rising rate environment. We look forward to discussing these and other topics with you in the near future. Best regards, Christine Telish, CFA John M. Miller, CFA Vice President Senior Vice President a Orange County Sanitation District for the month ending December 31,2004 Total Return Account-203 With Accrued Interest Without Accrued Interest Market Value 367,981,943 364,605,669 Book Value 365,989,837 362,613,563 Yield to Maturity 3.43 3.46 Short Term Account-603 With Accrued Interest Without Accrued Interest Market Value 73,088,641 72,975,689 Book Value 73,127,037 73,014,085 Yield to Maturity 2.50 2.50 MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING& REPORTING (for the month ended 31 December 2004) Page I of 1 Liquid Operating Monies(603) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO $73,088,641 • Mellon $73,090,138 Historical Cost: • PIMCO $73,127,037 • Mellon $73,155,135 15.1.2 MODIFIED DURATION Of Portfolio: 0.17 Of Index: 0.20 15.1.3 1% INTEREST RATE CHANGE Dollar Impact(gain/loss)of 1%Change: $124 251 15.1.4 REVERSE REPOS %of Portfolio in Reverse Repos: see attached schedule 0% 15.1.5 PORTFOLIO MATURITY %of Portfolio Maturing within 90 days: 75% 15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: "AAA" 15.1.7 SECURITIES BELOW"A" RATING %of Portfolio Below"A": 0% 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" Yes 15.1.9 PORTFOLIO PERFORMANCE Total Rate of Return(%)by Portfolio Index Period: 1 Month: 0.18 0.17 3 Months: 0.44 0.44 12 Months: 1.32 1.24 Fiscal Year-to-Date: 0.79 0.77 Commentary • The Liquid portfolio outperformed the benchmark by 1 basis point for the month,and by 2 basis points with the benchmark fiscal year-to-date. • PIMCO's emphasis on higher yielding securities such as commercial paper and short-term notes contributed to performance. H:\deptNnn\220\genle\FAIIR\LIQOSOO.04-12.RPT.doc a e MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 31 December 2004) Page 1 of 2 Long-Terns Operating Monies(203) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO $367,981,943 • Mellon $368,038,928 Historical Cost: • PIMCO $365,989,837 • Mellon $368,216,218 15.1.2 MODIFIED DURATION Of Portfolio: 2.10 Of Index: 2.41 15.1.3 1% INTEREST RATE CHANGE Dollar Impact(gain/loss)of 1%Change: $7,727 621 15.1.4 REVERSE REPOS %of Portfolio in Reverse Repos: see attached schedule 0% 15.1.5 PORTFOLIO MATURITY %of Portfolio Maturing within 90 days: 20% 15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: AAA 15.1.7 1 SECURITIES BELOW "A"RATING %of Portfolio Below"A": 0% 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" No* 15.1.9 PORTFOLIO PERFORMANCE Total Rate of Return(%)by Portfolio Index Period: 1 Month: 0.32 0.39 3 Months: 0.32 0.15 12 Months: 2.31 1.76 Fiscal Year-to-Date: 1.89 1.85 • The long-Term portfolio lagged the benchmark by 7 basis points for the month,and outperformed the benchmark by 4 basis points fiscal year-to-date. • Portfolio duration,below the index,was largely neutral for monthly performance as interest rates increased for short maturity issues yet decreased for intermediate and longer maturities. • Yield curve positioning similar to that of the index was neutral for performance. • An underweight exposure to corporates was negative for performance,as corporates outperformed Treasuries on a duration-adjusted basis. • Exposure to mortgage-backed securities was positive for relative performance as the sector outperformed Treasuries on a duration-adjusted basis. • Substituting Treasury Inflation Protected Securities for nominal Treasuries was positive for performance as short and intermediate TIPS outperformed their nominal counterparts during the month. MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 31 December 2004) Page 2 of 2 *Compliance Issues: $1,600,000 par of United Airlines(UAL)Pass-Through 2001-1-C(Enhanced Equipment Trust Certificate(EETC)-909317BC2),6.831%coupon,3/01/2010 maturity,representing 0.43%of the portfolio holdings on a par basis was purchased on 8/10/2001;and subsequently downgraded by Moody's from A3 to BA 1 (on 9/18/2001)and S&P from A-to BBB(on 9/20/2001). The security was further downgraded by Moody's from BA to BA3 (on 12/21/2001)and by S&P from BBB to BB(on 6/28/02). Following news of the possible bankruptcy filing,the security was further downgraded in August(133 Moody's, B+by S&P). On November 29, 2002,S&P further downgraded this issue to B,and shortly thereafter on December 9,2002,downgraded the issue one notch further to B-. On August 7,2003,S&P downgraded the issue to CCC+,while Moody's followed suit on August 28,2003 with a downgrade to CA. Both rating agencies have since withdrawn their ratings (Moody's withdrew in February 2004 and S&P withdrew in June 2004).The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P,with at least a BBB rating in the event of a split. On January 6,UAL pilots overwhelmingly ratified a new five-year contract which will allow the airline to cut wages and get rid of traditional pensions but will give the pilots future financial incentives.The contract would provide(assuming that it is approved by a U.S.Bankruptcy Court judge)the airline with$180 million in annual labor savings, according to a statement from the Air Line Pilots Association.UAL has been under bankruptcy protection for more than two years,and is seeking to cut$725 million in annual labor costs by mid-January. It said the bulk of the savings will come from changes to the labor agreement with the pilots.The agreement specifies,among other provisions,that UAL would issue$550 million in convertible notes to the union once the airline emerges from bankruptcy. Currently,UAL also has tentative deals with two smaller unions: the Professional Airline Flight Control Association and the Transport Workers Union.According to most analysts,pension issues could be key to the court debate over the pilots' agreement. PIMCO continues to negotiate with United on our holdings and currently leads an ad hoc committee. This has been an extremely complicated effort due to the complex nature of United's bankruptcy. These negotiations have required PIMCO's analysts access to non-public information and therefore sharing them results in parties becoming restricted. In light of this extremely complicated bankruptcy, PIMCO continues to strive to act in the most prudent manner to obtain maximum recovery. Split Rated Securities Still In Compliance: The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P,with at least a BBB in the event of a split rating. •$1,000,000 par of Ford Motor Credit securities(cusip 345397GV9 maturing 5/I5/05),representing 0.27%of the portfolio holdings on a par basis(exposure was reduced in July 2004 as$2.5 million par matured). The securities were downgraded on 10/16/2001 by S&P from A to BBB+,then to BBB on 10/25/02,and then to BBB-on 11/13/03. Moody's downgraded the securities on 1/16/02 from A2 to A3. •$1,750,000 par of Virginia Electric Power NT securities(cusip 927804EN0),maturing on March 31, 2006,represents 0.48%of the portfolio holdings on a par basis. The security was downgraded on 10/21/2002 by S&P from A-to BBB+,but continues to carry a Moody's rating of A3. H:IdeptVin11201geggiel FAHRILTOg00-04-IZ.RPT.dac a Report ID: GL8251 Asset Summary Base Currency: USD Mellon by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LIQUID OPER-PIMCO - OCSF07511102 12 31 2004 Status: FINAL Net Unrealized Cost Market Value % of Gain/Loss Description Shares Par Base Base Total Base CASH&CASH EQUIVALENTS U.S. DOLLAR CASH -12,300,000.00 -12,300,000.00 -16.83% 0.00 INTEREST 147,549.55 147,549.55 0.20% 0.00 CERTIFICATES OF DEPOSIT- DOMESTIC 3,000,000.000 3,000,000.00 3,000,000.00 4.10% 0.00 FED HM LOAN BNK- LESS THAN IYR 11,600,000.000 11,537,235.01 11,537,235.01 15.78% 0.00 FEDERAL HOME LOAN MORTGAGE-LESS THAN 1 YR 14,500,000.000 14,409,534.17 14,409,534.17 19.71% 0.00 FNMA ISSUES-LESS THAN IYR 13,600,000.000 13,523,939.77 13,523,939.77 18.50% 0.00 MUTUAL FUNDS 12,447,932.740 12,447,932.74 12,447,932.74 17.03% 0.00 REPURCHASE AGREEMENTS 12,300,000.000 12,300,000.00 12,300,000.00 16.83% 0.00 TREASURY BILLS- LESS THAN IYR 9,000,000.000 8,906,337.09 8,906,337.09 12.19% 0.00 U.S. DOLLAR 76,447,932.740 63,972,528.33 63,972,528.33 87.53% 0.00 CASH&CASH EQUIVALENTS 76,447,932.740 63,972,528.33 63,972,528.33 87.53% 0.00 FIXED INCOME SECURITIES U.S. DOLLAR BANKING&FINANCE 5,800,000.000 5,921,546.50 5,852,754.50 8.01% -68,792.00 U.S. GOVERNMENTS 3,300,000.000 3,261,060.00 3,264,855.00 4.47% 3,795.00 U.S. DOLLAR 99100,000.000 9,182,606.50 9,117,609.50 12.47% -64,997.00 FIXED INCOME SECURITIES 9,100,000.000 9,182,606.50 9,117,609.50 12.47% -64,997.00 TOTAL ASSETS-BASE: 85,547,932.740 73,155,134.83 73,090,137.83 100.00% -64,997.00 111112005 2:17:40PM PST 1 Workbench Asset Summary Report ID: GL8251 Base Currency: USD / Mellon by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LONG TERM OPER-PIMCO-OCSF07522202 12 31 2004 Status: FINAL Net Unrealized Cost. Market Value % of Gain/Loss Description Shares Par Base Base Total Base CASH&CASH EQUIVALENTS U.S. DOLLAR PENDING TRADES -61,212,153.45 -61,212,153.45 -16.63% 0.00 INTEREST 3,475,402.28 3,475,402.28 0.94% 0.00 CERTIFICATES OF DEPOSIT- DOMESTIC 10,000,000.000 9,995,500.00 9,995,500.00 2.72% 0.00 COMMERCIAL PAPER- DISCOUNT 500,000.000 496,600.00 496,600.00 0.13% 0.00 FED HM LOAN BNK-LESS THAN 1YR 21,000,000.000 20,982,132.25 20,982,132.25 5.70% 0.00 FNMA ISSUES- LESS THAN 1YR 500,000.000 496,878.19 496,878.19 0.14% 0.00 MUTUAL FUNDS 1,406,732.290 1,406,732.29 1,406,732.29 0.38% 0.00 TREASURY BILLS-LESS THAN IYR 16,000,000.000 15,843,937.78 15,843,937.78 4.30% 0.00 U.S. DOLLAR 49,406,732.290 -8,514,970.66 -8,514,970.66 -2.31% 0.00 CASH&CASH EQUIVALENTS 49,406,732.290 -8,514,970.66 -8,514,970.66 -2.31% 0.00 FIXED INCOME SECURITIES U.S. DOLLAR ABS-AIRPLANE RECEIVABLES 1,600,000.000 1,600,000.00 73,728.00 0.02% -1,526,272.00 ABS- HOME EQUITY 640,256.220 640,256.22 640,456.62 0.17% 200A0 BANKING&FINANCE 16,000,000.000 15,931,817.50 16,012,528.00 4.35% 80,710.50 COLLATERALIZED MORTGAGE OBLIGATION COMM/t 1,920,261.520 1,920,261.52 2,037,877.54 0.55% 117,616.02 FHLMC MULTICLASS 821,693,890 822,569.26 821,332.34 0.22% -1,236.92 FHLMC POOLS 58,264.570 56,844.36 59,922.43 0.02% 3,078.07 FNMA POOLS 52,257,109.350 53,156,581.05 53,153,022.95 14.44% -3,558.10 FNMA REMIC 271,370.410 276,797.82 271,258.39 0.07% -5,539.43 GNMA MULTI FAMILY POOLS 3,533,391.370 3,521,683.51 3,577,203.04 0.97% 55,519.53 GNMA SINGLE FAMILY POOLS 574,128.960 601,952.53 608,091.39 0.17% 6,138.86 INFLATION INDEXED SECURITIES 35,590,310.000 35,607,229.79 38,746,217.13 10.53% 3,138,987.34 INSURANCE 1,600,000.000 1,594,032.00 1,625,488.00 0.44% 31,456.00 PVT PLACEMENTS-MORE THN 1YR 752,000.000 826,199.84 826,199.84 0.22% 0.00 U.S.AGENCIES 43,884,320.240 44,845,125.44 44,506,503.63 12.09% -338,621.81 U.S. GOVERNMENTS 211,085,923.500 213,585,997.32 211,792,671.94 57.55% -1,793,325.38 UTILITY-ELECTRIC 1,750,000.000 1,743,840.00 1,801,397.50 0.49% 57,557.50 U.S. DOLLAR 372,339,030.030 376,731,188.16 376,553,898.74 102.31% -177,289.42 111112005 2:21:10PM PST 1 Workbench Asset Summary Report ID: GL8251 Base Currency: USD / Mellon by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LONG TERM OPER PIMCO-OCSF07522202 12 31 2004 Status: FINAL Net Unrealized Cost Market Value % of Gain/Loss Description Shares Par Base Base Total Base FIRED INCOME SECURITIES 372,339,030.030 376,731,188.16 376,553,898.74 102.31% -177,289.42 TOTAL ASSETS-BASE: 421,745,762.320 368,216,217.50 368,038,928.08 100.00% -177,289.42 111112005 2:21:10PM PST 2 Workbench YLDANAL YIELD ANALYSIS PAGE 1 OCSF07511102 2004/12/31 RUN DATE : 01/05/05 DISTRICT: LIQUID OPERATING RUN TIME : 11.23.17 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 9 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- CASH 6 CASH EQUIVALENTS 1,600,000.00 BANK OF AMERICAN NA INSTL C/D .000 2.260 100.000 1,600,000.00 2.10 06050GGS3 2.260% 03/09/2005 DD 11/16/04 1,600,000.00 1.88 1,000,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 99.521 995,215.00 1.30 313385AW6 MAT 01/21/2005 A-1+ 995,215.00 1.17 1,600,000.00 FEDERAL HOME LN BR CONS DISC .000 .000 P-1 99.599 1,593,586.67 2.09 313385BJ4 HAT 02/02/2005 A-l+ 1,593,586.67 1.87 6,000,000.00 FEDERAL HOME LN BK CONS DISC .000 .000 P-1 99.434 5,966,026.67 7.83 313385CA2 MAT 02/18/2005 A-l+ 5,966,026.67 7.00 3,000,000.00 FEDERAL HOME LN BR CONS DISC .000 .000 P-1 99.414 2,982,406.67 3.91 313385CV6 MAT 03/09/2005 A-1+ 2,982,406.67 3.50 6,000,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.457 5,967,391.67 7.83 313397BQ3 MAT 02/08/2005 A-I+ 5,967,391.67 7.00 6,000,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.402 5,964,142.50 7.83 313397DB4 MAT 03/15/2005 A-1+ 5,964,142.50 7.00 2,500,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.120 2,478,000.00 3.25 313397DY4 MAT 04/05/2005 A-1+ 2,478,000.00 2.91 1,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.579 995,787.78 1.30 313589BJI MAT 02/02/2005 A-1+ 995,787.78 1.17 4,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.442 3,977,675.83 5.22 313589BYS HAT 02/16/2005 A-1+ 3,977,675.83 4.67 1,600,000.00 FEDERAL NATL MTG ASSN DISCONT .000 .000 P-1 99.455 1,591,285.33 2.09 313589CFB MAT 02/23/2005 A-1+ 1,591,285.33 1.87 6,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.417 5,965,040.83 7.83 313589CN1 MAT 03/02/2005 A-1+ 5,965,040.83 7.00 1,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.415 994,150.00 1.30 313589CV3 MAT 03/09/2005 A-1+ 994,150.00 1.17 1,400,000.00 HSBC BANK USA INSTL C/D .000 2.335 100.000 1,400,000.00 1.83 40428AGZ4 2.335% 03/23/2005 DD 11/23/04 1,400,000.00 1.64 YLDANAL YIELD ANALYSIS PAGE s 2 OCSF07511102 2004/12/31 RUN DATE : 01/05/05 DISTRICT: LIQUID OPERATING RUN TIME : 11.23.17 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S—P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 9,000,000.00 U S TREASURY BILL .000 .000 P-1 98.959 8,906,337.09 11.69 912795SL6 DUE 04/28/2005 DD 10/29/04 A-1+ 8,906,337.09 10.45 12,300,000.00 LEHMAN CAT 1 REPO REPO .000 1.650 100.000 12,300,000.00 16.15 99429T630 01.650% 01/03/2005 DD 12/31/04 12,300,000.00 14.43 12,447,932.74 DREYFUS TREASURY CASH MGMT .000 1.799 AAA 100.000 12,447,932.74 16.35 996085247 AAA 12,447,932.74 14.60 -------- ------- ----------------- --------- TOTAL CASH 3 CASH EQUIVALENTS .000 .269 76,124,978.78 100.00 76,124,978.78 89.33 FIXED INCOME SECURITIES 3,000,000.00 ASSOCIATES CORP NORTH AMER SR .000 6.522 AA1 101.578 3,112,350.00 33.42 046003FF1 6.625% 06/15/2005 DD 06/09/95 AA— 3,047,340.00 3.57 150,000.00 BANKA14ERICA CORP MTN SR 00150 .000 7.019 AA2 101.515 153,652.50 1.67 06605LGFO 7.125% 05/12/2005 DD 05/12/95 A+ 152,272.50 .18 2,500,000.00 GENERAL ELEC CAP MTN #TR 00526 .000 2.614 AAA 100.031 2,502,460.00 27.42 36962GXX7 VAR RT 03/15/2005 DD 03/20/02 AAA 2,500,775.00 2.93 150,000.00 NORWEST FINL INC NT .000 7.482 AA1 101.578 153,084.00 1.67 669383DX6 7.600% 05/03/2005 DD 05/03/00 AA— 152,367.00 .18 3,300,000.00 U S TREASURY BILL .000 .000 AAA 98.935 3,261,060.00 35.80 912795SS1 0.000% 06/09/2005 DD 12/09/04 AAA 3,264,855.00 3.83 -------- ------- ----------------- --------- TOTAL FIXED INCOME SECURITIES .000 4.664 9,182,606.50 100.00 9,117,609.50 10.69 -------- ------- ----------------- --------- TOTAL .000 .487 85,307,585.28 100.00 85,242,588.28 100.00 YLDANAL YIELD ANALYSIS PAGE = 3 OCSF07522202 2004/12/31 RUN DATE 01/05/OS DISTRICTS LONG-TERM OPERATING RUN TIME : 11.23.17 PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- CASH 6 CASH EQUIVALENTS 10,900,000.00 FEDERAL HONE LN BR CONS DISC .000 .000 P-1 99.990 10,899,864.58 22.14 31338SACO HAT O1/03/2005 A-1+ 10,898,864.58 2.56 10,100,000.00 FEDERAL HOME LN BR CONS DISC N .000 .000 P-1 99.934 10,083,267.67 20.48 3133B5BD7 MAT 01/28/2005 A-1+ 10,083,267.67 2.37 500,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.376 496,878.19 1.00 313589DS9 HAT 03/30/2005 A-1+ 496,878.19 .12 500,000.00 GENERAL ELEC CAP DISC .000 2.054 P-1 99.320 496,600.00 1.00 36959HP43 02/04/2005 496,600.00 .12 10,000,000.00 UBS AG STAMFORD HRH INSTL C/D .000 2.471 99.955 9,995,500.00 20.30 90261GE47 VAR RT 07/05/2005 DD 07/02/04 9,995,500.00 2.35 16,000,000.00 U S TREASURY BILL .000 .000 P-1 99.025 15,843,937.78 32.18 912795SG7 0.000% 03/31/200S DD 09/30/04 A-1+ 15,843,937.79 3.72 1,406,732.29 DREYFUS TREASURY CASH MGMT .000 1.799 AAA 100.000 1,406,732.29 2.85 996085247 AAA 1,406,732.29 .33 .00 BSDT-LATE MONEY DEPOSIT ACCT .000 .000 .000 .00 .00 996087094 .00 .00 -------- ------- ----------------- --------- TOTAL CASH & CASH EQUIVALENTS .000 .430 49,221,780.51 100.00 49,221,780.51 11.57 FIXED INCOME SECURITIES 752,000.00 AIG SUNAMERICA GLOBAL REG S .000 5.325 109.867 626,199.84 .21 U00907AA0 5.850% 08/01/2008 DD 08/08/01 826,199.84 .19 22,000,000.00 COMMIT TO PUR FNMA SF MTG .000 4.922 AAA 101.579 22,367,812.50 5.93 O1F050411 5.000% 01/01/2020 DD 01/01/05 AAA 22,347,186.40 5.25 4,000,000.00 COMMIT TO PUR FNMA SF MTG .000 5.419 AAA 101.500 4,064,843.75 1.07 O1F052615 5.500% 01/01/2035 DD O1/01/05 AAA 4,060,000.00 .95 1,500,000.00 CIT GROUP INC NEW SR NT .000 2.909 A2 100.437 1,507,005.00 .40 125581AF5 VAR RT 09/22/2006 DD 09/23/03 A 1,506,555.00 .35 YLDANAL YIELD ANALYSIS PAGE t 4 OCSF07522202 2004/12/31 RUN DATE t 01/05/05 DISTRICT, LONG-TERM OPERATING RUN TIME t 11.23.17 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE B TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 10,000,000.00 FEDERAL ROHE LN MTG CORP MTN .000 4.031 AAA 99.228 9,993,100.00 2.63 3128X3WY5 4.000% 09/22/2009 DD 09/22/04 AAA 9,922,754.00 2.33 3,500,000.00 FEDERAL HOME LN BK CONS BDS .000 7.085 AAA 100.567 3,732,225.00 .93 3133MAUN7 7.125% 02/15/2005 DD 02/08/00 AAA 3,519,860.75 .83 58,264.57 FHLMC GROUP #78-6064 .000 3.883 AAA 102.845 56,844.36 .01 31348SWZ3 6.394% 01/01/2020 DD 12/01/97 AAA 59,922.43 .01 11,350,000.00 FEDERAL NATL HTG ASSN DEBS .000 5.101 AAA 102.923 11,521,271.50 3.10 31359MJX2 5.250% 06/15/2006 DD 06/22/01 AAA 11,681,735.53 2.74 658,108.58 FNMA POOL #0254510 .000 4.905 AAA 101.930 677,851.83 .17 31371KV84 5.000% 11/01/2017 DD 10/01/02 AAA 670,808.04 .16 141,534.48 FNMA POOL #0254631 .000 4.905 AAA 101.930 145,780.52 .03 31371KY47 5.000% 02/01/2018 DD 01/01/03 AAA 144,265.66 .03 126,449.82 FNHA POOL #0254760 .000 4.907 AAA 101.898 130,243.30 .03 31371K5V9 5.000% 06/01/2018 DD 05/01/03 AAA 129,850.39 .03 57,273.82 FNMA POOL 10254866 .000 4.907 AAA 101.898 58,992.04 .01 31371LCB3 5.000% '09/01/2019 DD 08/01/03 AAA 58,361.13 .01 304,919.14 FNMA POOL #0254953 .000 4.911 AAA 101.805 308,825.93 .08 31371LE21 5.000% 11/01/2018 DD 10/01/03 AAA 310,421.99 .07 823,779.36 FNMA POOL #0254987 .000 4.915 AAA 101.728 834,334.03 .22 31371LF46 5.000% 12/01/2018 DD 11/01/03 AAA 838,016.76 .20 144,290.76 FNHA POOL #0323980 .000 5.713 AAA 105.016 150,649.57 .04 31374T2M0 6.000% 04/01/2014 DD 09/01/99 AAA 151,527.04 .04 24,182.97 FNMA POOL 10357328 .000 4.911 AAA 101.818 24,908.46 .00 31376J4HB 5.000% 01/01/2018 DD 01/01/03 AAA 24,622.72 .01 1,253,699.06 FNMA POOL #0357430 .000 4.907 AAA 101.89E 1,267,803.17 .33 31376KA71 5.000% 09/01/2018 DD 09/01/03 AAA 1,277,499.78 .30 41,444.18 FNMA POOL #0456482 .000 5.713 AAA 105.016 43,270.30 .01 31381CCT2 6.000% 02/01/2014 DD 02/01/99 AAA 43,522.86 .01 99,586.82 FNHA POOL 10509649 .000 5.713 AAA 105.016 103,974.86 .02 313830EWO 6.000% 09/01/2014 DD 09/01/99 AAA 104,501.72 .02 YLDANAL YIELD ANALYSIS PAGE : 5 OCSF07522202 2004/12/31 RUN DATE : 01/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME : 11.23.17 ----- PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 112,247.89 FNMA POOL 00535451 .000 5.713 AAA 105.016 117,193.01 .03 31384VZQ8 6.000% 06/01/2015 DD 07/01/00 AAA 117,877.82 .03 302,692.09 FNMA POOL #0555363 .000 4.905 AAA 101.930 311,762.54 .08 31385W5Y1 5.000% 04/01/2018 DD 03/01/03 AAA 308,522.92 .07 31,454.66 FNMA POOL 10555453 .000 4.905 AAA 101.930 31,857.60 .00 31385XBW6 5.000% 05/01/2018 DD 04/01/03 AAA 32,061.64 .01 251,079.58 FNMA POOL 10555545 .000 4.905 AAA 101.930 259,611.98 .06 31385XES2 5.000% 06/01/2018 DD 05/01/03 AAA 255,924.64 .06 868,071.86 FNMA POOL #0555621 .000 4.915 AAA 101.728 877,837.67 .23 31385XG68 5.000% 07/01/2018 DD 06/01/03 AAA 883,074.77 .21 467,041.08 FNMA POOL #0681309 .000 4.905 AAA 101.930 481,052.31 .12 31391Y3S4 5.000% 02/01/2019 DD 02/01/03 AAA 476,053.53 .11 56,921.66 FNMA POOL #0681334 .000 4.905 AAA 101.930 58,629.31 .01 31391Y4T1 5.000% 02/01/2018 DD 01/01/03 AAA 58,020.07 .01 271,370.41 FNMA GTD REMIC P/T 02-76 PD .000 5.002 AAA 99.959 276,797.82 .07 31392FKF3 5.000% 08/25/2022 DD 10/01/02 AAA 271,258.39 .06 307,372.19 FNHA POOL #0684908 .000 4.905 AAA 101.930 311,310.41 .08 31400D3R1 5.000% 06/01/2018 DD 05/01/03 AAA 313,303.52 .07 167,196.92 FNHA POOL #0685200 .000 4.905 AAA 101.930 169,339.15 .04 31400EGB7 5.000% 03/01/2018 DD 03/01/03 AAA 170,423.30 .04 28,840.65 FNMA POOL #0685665 D00 4.905 AAA 101.930 29,714.11 .00 31400EW22 5.000% 02/01/2019 DD 02/01/03 AAA 29,405.34 .01 254,590.62 FNMA POOL 10686318 .000 4.905 AAA 101.930 262,228.34 .06 31400FPB7 5.000% 03/01/2018 DD 03/01/03 AAA 259,503.43 .06 100,454.07 FNMA POOL 10688739 .000 4.907 AAA 101.898 103,467.69 .02 31400JEL9 5.000% 06/01/2018 DD 06/01/03 AAA 102,361.13 .02 83,407.40 FNMA POOL #0689859 .000 4.907 AAA 101.898 84,476.06 .02 31400KMGB 5.000% 05/01/2018 DD 05/01/03 AAA 84,990.94 .02 556,364.01 FNMA POOL #0693834 .000 4.905 AAA 101.930 573,054.92 .15 3140OPY74 5.000% 03/01/2018 DD 03/01/03 AAA 567,100.11 .13 YLDANAL YIELD ANALYSIS PAGE 6 OCSF07522202 2004/12/31 RUN DATE : 01/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME : 11.23.17 --------------------------------- PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 198,831.75 FNMA POOL #0695852 .000 4.905 AAA 101.930 204,796.70 .05 31400SBVO 5.000% 05/01/2018 DD 05/01/03 AAA 202,669.59 .05 671,983.39 FNMA POOL #0695889 .000 4.907 AAA 101.898 692,142.91 .18 31400SC23 5.000% 05/01/2018 DD 05/01/03 AAA 684,740.59 .16 20,688.81 FNMA POOL 40697026 .000 4.905 AAA 101.930 21,309.49 .00 31400TLF2 5.000% 05/01/2018 DD 04/01/03 AAA 21,088.04 .00 204,978.49 FNMA POOL #0702210 .000 4.915 AAA 101.728 211,127.83 .05 31401ADP9 5.000% 05/01/2019 DD 05/01/03 AAA 200,521.13 .05 122,766.23 FNMA POOL #0702328 .000 4.905 AAA 101.930 124,339.17 .03 31401AHD2 5.0008 05/01/2018 DD 04/01/03 AAA 125,135.24 .03 255,479.44 FNMA POOL #0709148 .000 4.907 AAA 101.898 263,143.83 .06 31401RZM7 5.000% 06/01/2018 DD 06/01/03 AAA 260,329.56 .06 577,740.71 FNMA POOL #0709360 .000 4.907 AAA 101.898 585,143.02 .15 31401JB56 5.000% 07/01/2018 DD 06/01/03 AAA 588,708.77 .14 99,414.90 FNMA POOL #0709B26 .000 4.907 AAA 101.898 100,688.65 .02 31401JSP4 5.000% 06/01/2018 DD 06/01/03 AAA 101,302.23 .02 206,720.61 FNMA POOL #0709917 .000 4.905 AAA 101.930 209,369.21 .05 31401JVJ4 5.000% 06/01/2018 DD 06/O1/03 AAA 210,709.69 .05 17,972.26 FNHA POOL #0709963 .000 4.915 AAA 101.728 18,202.54 .00 31401JWYO 5.000% 06/01/2018 DD 06/01/03 AAA 18,282.80 .00 547,080.41 FNMA POOL 10710235 .000 4.907 AAA 101.898 563,492.84 .14 31401KBCS 5.000% 06/01/2018 DD 06/01/03 AAA 557,466.40 .13 15,009.63 FNMA POOL #0713344 .000 4.907 AAA 101.898 15,458.98 .00 31401HP52 5.000% 06/01/2018 DD 06/01/03 AAA 15,293.56 .00 236,631.34 FNHA POOL #0713365 .000 4.907 AAA 101.898 239,663.18 .06 31401NQS1 5.000% 07/01/2010 DD 07/01/03 AAA 241,123.64 .06 685,676.36 FNMA POOL #0720319 .000 4.907 AAA 101.898 694,461.59 .18 31401WG45 5.000% 07/01/2018 DD 07/01/03 AAA 698,693.51 .16 1,904,790.31 FNMA POOL #0720369 .000 4.915 AAA 101.728 2,044,334.02 .53 31401WJN0 5.000% 06/01/2018 DD 06/01/03 AAA 2,019,093.50 .47 YLDANAL YIELD ANALYSIS PAGE f 7 OCSF07522202 2004/12/31 RUN DATE f 01/05/05 DISTRICTS LONG-TERM OPERATING RUN TIME f 11.23.17 PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 277,383.53 FNHA POOL #0721629 .000 4.907 AAA 101.898 295,705.05 .07 31401XVW4 5.000% 07/01/2018 DD 06/01/03 AAA 282,649.49 .07 230,369.29 FNMA POOL #0723487 .000 4.907 AAA 101.898 232,960.95 .06 31402AXQ4 5.000% 06/01/2018 DD 06/01/03 AAA 234,742.71 .06 373,670.68 FNMA POOL #0729601 .000 4.907 AAA 101.998 378,450.34 .10 31402HRW3 5.000% 07/01/2018 DD 07/01/03 AAA 380,764.59 .09 32,939.27 FNMA POOL #0732873 .000 4.905 AAA 101.930 33,361.28 .00 31402MFHS 5.000% 11/01/2019 DD 10/01/03 AAA 33,574.90 .01 598,332.58 FNHA POOL #0737130 .000 4.907 AAA 101.999 605,998.72 .16 31402S4P9 5.000% 10/01/2018 DD 10/01/03 AAA 609,691.57 .14 492,463.01 FNMA POOL #0738211 .000 4.915 AAA 101.728 498,772.71 .13 31402UDQ2 5.000% 10/01/2018 DD 10/01/03 AAA 500,974.26 .12 177,623.68 FNMA POOL #0738407 .000 4.911 AAA 101.805 179,899.48 .04 31402UNC2 5.000% 10/01/2018 DD 10/01/03 AAA 180,829.24 .04 665,337.58 FNMA POOL #0740471 .000 4.915 AAA 101.728 673,862.20 .17 31402WT40 5.000% 10/01/2018 DD 10/01/03 AAA 676,836.63 .16 720,217.71 FNHA POOL #0740749 .000 4.907 AAA 101.898 737,547.99 .19 31402W5H7 5.000% 10/01/2018 DD 11/01/03 AAA 742,042.49 .17 35,330.10 FNMA POOL #0743068 .000 4.915 AAA 101.728 35,782.76 .00 31403BMRI 5.000% 11/01/2018 DD 10/01/03 AAA 35,940.71 .01 944,507.17 FNMA POOL #0744008 .000 4.907 AAA 101.898 956,608.67 .25 31403BR54 5.000% 07/01/2018 DD 09/01/03 AAA 962,438.07 .23 146,579.41 FNMA POOL #0744316 .000 4.915 AAA 101.728 149,457.46 .03 31403B3Z4 5.000% 09/01/2018 DD 09/01/03 AAA 149,112.75 .04 323,114.32 FNMA POOL #0747914 .000 4.911 AAA 101.805 327,254.23 .08 31403F3XO 5.000% 11/01/2018 DD 11/01/03 AAA 328,945.53 .08 187,273.90 FNMA POOL #0748400 .000 4.915 AAA 101.728 189,673.35 .05 31403GNR9 5.000% 08/01/2018 DD 09/01/03 AAA 190,510.56 .04 905,424.48 FNMA POOL #0748899 .000 4.917 AAA 101.696 917,025.23 .24 31403G7LO 5.000% 12/01/2018 DD 11/01/03 AAA 920,782.27 .22 YLOANAL YIELD ANALYSIS PAGE s 8 OCSF07522202 2004/12/31 RUN DATE 01/05/05 DISTRICTS LONG-TERM OPERATING RUN TIME s 11.23.17 -----a---�caa=-^acs.•.:a-a=a�cccvas ==:s�acxc==saas�rtascxcsaa:===�s===--a===�a=c�-===a=====_====-a=�a--=aa===-====aa=-ac=-=c= PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 2,025,101.56 FNHA POOL #0750377 .000 4.917 AAA 101.696 2,051,048.17 .54 31403JUA2 5.000% 11/01/2018 DD 11/01/03 AAA 2,059,451.29 .49 1,793,952.02 FNMA POOL #0750380 .000 4.917 AAA 101.696 1,816,937.05 .48 31403JUD6 5.000% 11/61/2018 DD 11/01/03 AAA 1,824,391.00 .43 166,045.33 FNMA POOL #0750445 .000 4.917 AAA 101.696 168,172.79 .04 31403JWE2 5.000% 11/01/2018 DD 11/01/03 AAA 168,061.79 .04 756,684.52 FNMA POOL #0751960 .000 4.915 AAA 101.728 766,379.55 .20 31403LMH1 5.000% 12/01/2019 DD 11/01/03 AAA 769,762.32 .18 808,660.13 FNHA POOL #0753425 .000 4.911 AAA 101.805 818,010.25 .21 31403NA23 5.000% 11/01/2018 DD 11/01/03 AAA 823,253.94 .19 581,719.98 FNHA POOL #0755165 .000 4.911 AAA 101.805 589,173.17 .15 3140306A3 5.000% 12/01/2018 DD 11/01/03 AAA 592,218.12 .14 897,613.90 FNMA POOL #0756372 .000 4.911 AAA 101.805 907,992.55 .24 31403SJR8 5.000% 11/01/2018 DD 11/01/03 AAA 913,813.05 .21 9,514.42 GNMA POOL #0421389 .000 6.129 AAA 106.070 9,985.69 .00 36206UC23 6.500% 04/15/2026 DD 04/01/96 AAA 10,091.97 .00 19,830.79 GNHA POOL #0449851 .000 6.173 AAA 105.301 20,813.04 .00 36208FWLO 6.500% 01/15/2028 DD 01/01/98 AAA 20,892.03 .00 32,712.24 GNMA POOL #0466945 .000 6.132 AAA 106.008 34,332.52 .00 36209BTA6 6.500% 06/15/2028 DD 06/01/98 AAA 34,677.53 .01 110,880.13 GNMA POOL #0468052 .000 6.133 AAA 105.977 116,372.16 .03 36209CSH4 6.500% 07/15/2028 DD 07/01/99 AAA 117,506.95 .03 137,259.50 GNMA POOL #0476041 .000 6.143 AAA 105.805 143,843.68 .03 36209MZE7 6.500% 06/15/2028 DD 06/01/98 AAA 145,226.99 .03 120,625.21 GNHA POOL #0478626 .000 6.133 AAA 105.977 126,411.45 .03 36209QVT9 6.500% 01/15/2029 DD 01/01/99 AAA 127,834.45 .03 28,774.61 GNHA POOL #0480598 .000 6.133 AAA 105.977 30,154.88 .00 36209S3F6 6.500% 10/15/2028 DD 10/01/99 AAA 30,494.34 .01 8,392.02 GNMA POOL 10512235 .000 6.133 AAA 105.977 8,807.68 .00 36211GBC6 6.500% 11/15/2029 DD 11/01/99 AAA 8,893.57 .00 YLDANAL YIELD ANALYSIS PAGE t 9 OCSF07522202 2004/12/31 RUN DATE t 01/05/05 DISTRICT: LONG-TERN OPERATING RUN TIME t 11.23.17 ===c====----------a-----aaoxaaaaaaszaasraaax--_-_saxzacsaaaxx=--saxxxx--aaxaxxx a.xx-x-aaacx=x-xaaa=xx==xmavx=vaaaxx==v--a==aa PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 9 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 106,140.04 GNMA POOL #0514326 .000 6.133 AAA 105.977 111,231.43 .02 36211JLF2 6.500% 07/15/2029 DD 07/01/99 AAA 112,493.56 .03 179,458.23 GNMA II POOL #0000395 .000 3.327 AAA 101.432 177,031.89 .04 36225CNM4 VAR RT 04/20/2030 DD 04/01/00 AAA 182,027.26 .04 1,622,802.93 GNMA II POOL #080408X .000 3.327 AAA 101.431 1,606,321.33 .43 36225CN29 VAR RT 05/20/2030 DD 05/01/00 AAA 1,646,021.18 .39 1,359,988.47 GNMA II POOL #0080965 .000 3.470 AAA 100.860 1,359,138.47 .36 36225DCB8 VAR RT 07/20/2034 DD 07/01/04 AAA 1,371,689.13 .32 6,000,000.00 GENERAL ELEC CAP MTN #TR 00526 .000 2.614 AAA 100.031 6,002,544.00 1.59 36962GXX7 VAR RT 03/15/2005 DD 03/20/02 AAA 6,001,860.00 1.41 3,500,000.00 GOLDMAN SACHS GRP MTN #TR00194 .000 2.276 AA3 100.187 3,507,850.50 .93 38141EJ96 VAR RT 10/27/2006 DD 10/29/03 A+ 3,506,545.00 .82 800,000.00 GOLDMAN SACHS GRP MTN #TR00207 .000 2.422 AA3 100.328 800,000.00 .21 38141EJ03 VAR RT 07/23/2009 DD 07/23/04 A+ 802,624.00 .19 3,200,000.00 MORGAN STANLEY NT .000 3.897 AA3 99.437 3,149,240.00 .84 61746BALO 3.975% 01/15/2009 DD 01/13/04 A+ 3,181,984.00 .75 640,256.22 RESIDENTIAL ASSET 03-RS11 AIIB .000 2.747 AAA 100.031 640,256.22 .17 760985K83 VAR RT 12/25/2033 DD 12/30/03 AAA 640,456.62 .15 2,985,923.50 SBA GTD DEV PARTN 2001-20C 1 .000 5.889 AAA 107.655 2,985,923.50 .85 83162CLJO 6.340% 03/01/2021 AAA 3,214,495.94 .75 1,920,261.52 SBA GTD PARTN CTFS SBIC-PS 01 .000 6.257 AAA 106.125 1,920,261.52 .54 831641DD4 6.640% 02/10/2011 DD 02/21/01 NR 2,037,877.54 .49 1,600,000.00 UNITED AIRLS PASSTHRU 01-1 C .000 148.242 WR 4.608 1,600,000.00 .01 909317BC2 6.931% 03/01/2010 DD 08/22/01 A- 73,728.00 .02 20,000,000.00 U S TREASURY NOTES .000 5.870 AAA 106.469 22,620,312.50 5.65 9128272JO 06.250% 02/15/2007 DD 02/15/97 AAA 21,293,800.00 5.00 3,549,330.00 US TREASURY INFLATION INDEX NT .000 3.327 AAA 108.969 3,858,831.35 1.02 9128273T7 3.625% 01/15/2008 DD 01/15/98 AAA 3,867,669.41 .91 15,151,240.00 US TREASURY INFLATION INDEX HT .000 3.456 AAA 112.110 16,776,600.11 4.51 9128274YS 3.875% 02/15/2009 DD 01/15/99 AAA 16,985,979.41 3.99 YLDANAL YIELD ANALYSIS PAGE t 10 OCSF07522202 2004/12/31 RUN DATE : 01/05/05 DISTRICT: LONG-TERH OPERATING RUN TIME t 11.23.17 ---scar=---caaaaaa=aaa=-aaxaaa=acaaccc--=aca=xa.-=asaaasssx=occa====o=x==vc==c=c-c=-=c�_=====c==.-c=ac-=a===a=�-cxa======cac==c PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 9 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 3,900,000.00 U S TREASURY NOTES .000 5.605 AAA 102.594 41280,149.14 1.06 9128276N7 05.750% 11/15/2005 DD 11/15/00 AAA 4,001,166.00 .94 17,600,000.00 U S TREASURY NOTES .000 3.385 AAA 99.710 17,405,000.00 4.66 912828BT6 3.375% 12/15/2008 DD 12/15/03 AAA 17,548,960.00 4.12 27,500,000.00 U S TREASURY NOTES .000 2.757 AAA 99.760 27,463,468.63 7.20 91282SCH0 2.750% 06/30/2006 DD 06/30/04 AAA 27,434,000.00 6.44 49,000,000.00 U S TREASURY NOTES .000 2.758 AAA 99.710 49,103,927.41 12.97 912828COl 2.750% 07/31/2006 DD 07/31/04 AAA 48,857,900.00 11.48 55,300,000.00 U S TREASURY NOTES .000 2.398 AAA 99.030 55,048,031.25 14.54 912828CU2 2.375% 08/31/2006 DD 08/31/04 AAA 54,763,590.00 12.86 20,800,000.00 U S TREASURY NOTES .000 2.883 AAA 99.720 20,717,574.59 5.50 912828DD9 2.975% 11/30/2006 DD 11/30/04 AAA 20,741,760.00 4.87 14,000,000.00 U S TREASURY NOTES .000 3.516 AAA 99.550 13,953,610.30 3.70 912828DE7 3.500% 12/15/2009 DD 12/15/04 AAA 13,937,000.00 3.27 1,750,000.00 VIRGINIA ELEC 6 PWR 01 SER A .000 5.586 A3 102.937 1,743,840.00 .47 927804EN0 5.750% 03/31/2006 DD 03/27/01 BBB+ 1,901,397.50 .42 16,889,740.00 US TREASURY INFLATION INDEX NT 3.817 3.186 AAA 105.938 14,971,798.33 4.75 9128272M3 3.375% 01/15/2007 DD O1/15/97 AAA 17,892,568.31 4.20 15,500,000.00 FEDERAL NATL MTG ASSN DEBS 5.967 7.084 AAA 100.573 16,154,410.00 4.13 31359HF81 7.125% 02/15/2005 DD 02/14/00 AAA 15,588,762.30 3.66 821,693.89 FHLHC MULTICLASS MTG SER E3 A 6.316 3.719 AAA 99.956 822,569.26 .21 3133TCE95 VAR RT 08/15/2032 DD 12/01/97 AAA 821,332.34 .19 498,064.54 GNMA GTD REMIC TR 2000-9 FH 6.320 2.808 AAA 100.670 498,064.54 .13 3837B4NX9 VAR RT 02/16/2030 AAA 501,401.57 .12 207,631.74 GNMA II POOL i080088H 6.705 3.328 AAA 101.404 212,173.69 .05 36225CC20 7.375% 06/20/2027 DD 06/01/97 AAA 210,545.96 .05 163,510.00 GNMA II POOL #0080023 6.992 4.041 AAA 102.095 166,218.13 .04 36225CAZ9 VAR RT 12/20/2026 DD 12/01/96 AAA 166,919.51 .04 2,100,000.00 FEDERAL NATL HTG ASSN DEBS 7.113 5.935 AAA 111.621 2,030,133.00 .62 31359HEY5 6.625% 09/15/2009 DD 09/01/99 AAA 2,344,033.86 .55 C YLDANAL YIELD ANALYSIS PAGE 11 OCSF07522202 2004/12/31 RUN DATE : 01/05/05 DISTRICT: LONG-TERM OPERATING RUN TIRE : 11.23.17 -------- --------- PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 1,000,000.00 FORD MOTOR CR CO NT 7.592 6.664 A3 101.296 965,170.00 .26 345397GV9 6.750% 05/15/2005 DD 05/24/93 BBB- 1,012,960.00 .24 936,255.70 WMP/BUNTOON PAIGE #DOO-11150 7.684 7.407 AAA 101.250 915,921.40 .25 302998GE3 7.500% 12/01/2030 DD 10/21/99 AAA 947,955.62 .22 1,600,000.00 ALLSTATE CORD SR HT 7.967 7.752 Al 101.593 1,594,032.00 .43 020002AL5 7.875% 05/01/2005 DD 05/01/00 A+ 1,625,489.00 .38 -------- ------- ----------------- --------- TOTAL FIXED INCOME SECURITIES .140 4.400 376,731,188.16 100.00 376,553,898.74 88.38 -------- ------- ----------------- --------- TOTAL .137 4.319 425,952,968.67 100.00 425,775,679.25 100.00 Asset Detail Report ID: GL8013 / Mellon �'�O� Base Currency: USD by Currency Alternate Base Currency: OCSD-CONSOLIDATED-OCSG00010000 12 31 2004 Exchange Rate: Status• FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Basel,- Base - Total Base U.S. DOLLAR CASH&CASH EQUIVALENTS CASH -12,300,000.00 -12,300,000.00 -2.79% 0.00 RECEIVABLE FOR INVESTMENTS 19,599.78 19,599.78 0.00% 0.00 SOLD PAYABLE FOR INVESTMENTS -61,231,753.23 -61,231,753.23 -13.88% 0.00 PURCHASED INTEREST RECEIVABLE 3,622,951.83 3,622,951.83 0.82% 0.00 BANK OF AMERICAN NA INSTL C/D 100.0000 1,600,000.000 1,600,000.00 1,600,000.00 0.36% 0.00 2.260%03/09/2005 DD 11/16/04 SEC ID:06050GGS3 FEDERAL HOME LN BK CONS DISC 99.9896 10,900,000.000 10,898,864.58 10,898,864.58 2.47% 0.00 MAT 01/03/2005 SEC ID: 313385ACO FEDERAL HOME LN BK CONS DISC N 99.5215 1,000,000.000 995,215.00 995,215.00 0.23% 0.00 MAT 01/21/2005 SEC ID: 313385AW6 FEDERAL HOME LN BK CONS DISC N 99.8343 10,100,000.000 10,083,267.67 10,083,267.67 2.29% 0.00 MAT 01/28/2005 SEC ID: 313385BD7 FEDERAL HOME LN BK CONS DISC 99.5992 1,600,000.000 1,593,586.67 1,593,586.67 0.36% 0.00 MAT 02/02/2005 SEC ID:313385BJ4 FEDERAL HOME LN BK CONS DISC 99.4338 6,000,000.000 5,966,026.67 5,966,026.67 1.35% 0.00 MAT 02/18/2005 SEC ID:313385CA2 FEDERAL HOME LN BK CONS DISC 99.4136 3,000,000.000 2,982,406.67 2,982,406.67 0.68% 0.00 MAT 03/09/2005 SEC ID: 313385CV6 FEDERAL HOME LN MTG CORP DISC 99.4565 6,000,000.000 5,967,391.67 5,967,391.67 1.35% 0.00 MAT 02/08/2005 SEC ID: 313397BQ3 FEDERAL HOME LN MTG CORP DISC 99.4024 6,000,000.000 5,964,142.50 5,964,142.50 1.35% 0.00 MAT 03/15/2005 SEC ID: 313397DB4 FEDERAL HOME LN MTG CORP DISC 99.1200 2,500,000.000 2,478,000.00 2,478,000.00 0.56% 0.00 MAT 04/05/2005 SEC ID: 313397DY4 FEDERAL NATL MTG ASSN DISCOUNT 99.5788 1,000,000.000 995,787.78 995,787.78 0.23% 0.00 MAT 02/02/2005 SEC ID:313589BJI 111112005 2:24:20PM PST 1 Workbench Asset Detail Report ID: GL8013 el'0 n Base Currency: USD by Currency Alternate Base Currency: 0CSC0NS0LInATED- 0CSG00010000 12/31/2004 Exchange Rate: D Status: FINAL Net Unrealized Price Cost Market Value % of. Gain/Loss Description Base Shares Par Base Base Total Base FEDERAL NATL MTG ASSN DISCOUNT 99.4419 4,000,000.000 3,977,675.83 3,977,675.83 0.90% 0.00 MAT 02/16/2005 SEC ID: 313589BY8 FEDERAL NATL MTG ASSN DISCONT 99.4553 1,600,000.000 1,591,285.33 1,591,285.33 0.36% 0.00 MAT 02/23/2005 SEC ID: 313589CF8 FEDERAL NATL MTG ASSN DISCOUNT 99.4173 6,000,000.000 5,965,040.83 5,965,040.83 1.35% 0.00 MAT 03/02/2005 SEC ID: 313589CN 1 FEDERAL NATL MTG ASSN DISCOUNT 99.4150 1,000,000.000 994,150.00 994,150.00 0.23% 0.00 MAT 03/09/2005 SEC ID: 313589CV3 FEDERAL NATL MTG ASSN DISCOUNT 99.3756 500,000.000 496,878.19 496,878.19 0.11% 0.00 MAT 03/30/2005 SEC ID: 313589DS9 GENERAL ELEC CAP DISC 99.3200 500,000.000 496,600.00 496,600.00 0.11% 0.00 02/04/2005 SEC ID:36959HP43 HSBC BANK USA INSTL C/D 100.0000 1,400,000.000 1,400,000.00 1,400,000.00 0.32% 0.00 2.335%03/23/2005 DD 11/23/04 SEC ID:40428AGZ4 UBS AG STAMFORD BRH INSTL C/D 99.9550 10,000,000.000 9,995,500.00 9,995.500.00 2.27% 0.00 VAR RT 07/05/2005 DD 07/02/04 SEC ID: 90261GE47 U S TREASURY BILL 99.0246 16,000.000.000 15,843,937.78 15,843,937.78 3.59% 0.00 0.000%03/31/2005 DD 09/30/04 SEC ID: 912795SG7 U S TREASURY BILL 98.9593 9,000,000.000 8,906,337.09 8,906,337.09 2.02% 0.00 DUE 04/28/2005 DD 10/28/04 SEC ID:912795SL6 LEHMAN CAT 1 REPO REPO 100.0000 12,300,000.000 12,300,000.00 12,300,000.00 2.79% 0.00 0 1.650%01/03/2005 DD 12/31/04 SEC ID:99429T630 DREYFUS TREASURY CASH MGMT 100.0000 13,854,665.030 13,854,665.03 13,854,665.03 3.14% 0.00 SEC ID:996085247 TOTAL CASH&CASH EQUIVALENTS 125,854,665.030 55,457,557.67 55,457,557.67 12.57% 0.00 FIXED INCOME SECURITIES AIG SUNAMERICA GLOBAL REG S 109.8670 752,000.000 826,199.84 826,199.84 0.19% 0.00 5.850%08/01/2008 DD 08/08/01 SEC ID: U00907AAO 111112005 2:24:20PM PST 2 Workbench Asset Detail Report m: GL8013 Base Currency:Mellon Alternate Base Currency: USD by Currency Exchange Rate: 0CSD-00NS0ZJn4TED-OCSG00010000 12/31/2004 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/boss. Description Base Shares Par Base Base Total Base COMMIT TO PUR FNMA SF MTG 101.5781 22,000,000.000 22,367,812.50 22,347,186.40 5.07% -20,626.10 5.000%01/01/2020 DD 01/01/05 SEC ID:01 F050411 COMMIT TO PUR FNMA SF MTG 101.5000 4,000,000.000 4,064,843.75 4,060,000.00 0.92% -4,843.75 5.500%01/01/2035 DD 01/01/05 SEC ID:01FOS2615 ALLSTATE CORP SR NT 101.5930 1,600,000.000 1,594,032.00 1,625,488.00 0.37% 31,456.00 7.875%05/01/2005 DD 05/01/00 SEC ID:020002AL5 ASSOCIATES CORP NORTH AMER SR 101.5780 3,000,000.000 3,112,350.00 3,047,340.00 0.69% -65,010.00 6.625%06/15/2005 DD 06/09/95 SEC ID:046003FF1 BANKAMERICA CORP MTN SR 00150 101.5150 150,000.000 153,652.50 152,272.50 0.03% -1,380.00 7.125%05/12/2005 DD 05/12/95 SEC ID:06605LGFO CIT GROUP INC NEW SR NT 100.4370 1,500,000.000 1,507,005.00 1,506,555.00 0.34% -450.00 VAR RT 09/22/2006 DD 09/23/03 SEC ID: 125581AF5 WMP/HUNTOON PAIGE#000-11150 101.2497 936,255.700 915,921.40 947,955.62 0.21% 32,034.22 7.500% 12/01/2030 DD 10/21/99 SEC ID: 302998GE3 FEDERAL HOME LN MTG CORP MTN 99.2275 10,000,000.000 9,993,100.00 9,922,754.00 2.25% -70,346.00 4.000%09/22/2009 DD 09/22/04 SEC ID:3128X3WY5 FEDERAL HOME LN BK CONS BDS 100.5675 3,500,000.000 3,732,225.00 3,519,860.75 0.80% -212,364.25 7.125%02/15/2005 DD 02/08/00 SEC ID: 3133MAUN7 FHLMC MULTICLASS MTG SER E3 A 99.9560 821,693.890 822,569.26 821,332.34 0.19% -1,236.92 VAR RT 08/15/2032 DD 12/01/97 SEC ID:3133TCE95 FHLMC GROUP#78-6064 102.8454 58,264.570 56,844.36 59,922.43 0.01% 3,078.07 6.384%01/01/2028 DD 12/01/97 SEC ID:31348SWZ3 FEDERAL NATI,MTG ASSN DEBS 111.6207 2,100,000.000 2,030,133.00 2,344,033.86 0.53% 313,900.86 6.625%09/15/2009 DD 09/01/99 SEC ID:31359MEYS FEDERAL NATL MTG ASSN DEBS 100.5727 15,500,000.000 16,154,410.00 15,588,762.30 3.53% -565,647.70 7.125%02/15/2005 DD 02/14/00 SEC ID:31359MFH 1 FEDERAL NATL MTG ASSN DEBS 102.9228 11,350,000.000 11,521,271.50 11,681,735.53 2.65% 160,464.03 5.250%06/15/2006 DD 06/22/01 SEC ID:31359MJX2 111112005 2:24:20PM PST 3 Workbench Asset Detail Report ID: GL8013 Base Currency: USD / Mellon by Currency Alternate Base Currency: OCSD-CONSOLIDATED-OCSG00010000 12/31/2004 Exchange Rate: Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base' Shares Par. Base Base Total : Base FNMA POOL#0254510 101.9297 658,108.580 677,851.83 670,808.04 0.15% -7,043.79 5.000% 11/01/2017 DD 10/01/02 SEC ID: 31371KVB4 FNMA POOL#0254631 101.9297 141,534.480 145,780.52 144,265.66 0.03% -1,514.86 5.000%02/01/2018 DD 01/01/03 SEC ID: 31371KY47 FNMA POOL#0254760 101.8984 126,449.820 130,243.30 128,850.39 0.03% -1,392.91 5.000%06/01/2018 DD 05/01/03 SEC ID: 31371K5V9 FNMA POOL#0254866 101.8984 57,273.820 58,992.04 58,361.13 0.01% -630.91 5.000%09/01/2018 DD 08/01/03 SEC ID:31371LCB3 FNMA POOL#0254953 101.8047 304,919.140 308,825.93 310,421.99 0.07% 1,596.06 5.000% 11/01/2018 DD 10/01/03 SEC ID: 31371LE21 FNMA POOL#0254987 101.7283 823,779.360 834,334.03 838,016.76 0.190/0 3,682.73 5.000% 12/01/2018 DD 11/01/03 SEC ID:31371LF46 FNMA POOL#0323980 105.0156 144,290.760 150,648.57 151,527.84 0.03% 879.27 6.000%04/01/2014 DD 09/01/99 SEC ID:31374T2M0 FNMA POOL#0357328 101.8184 24,182.970 24,908.46 24,622.72 0.01% -285.74 5.000%01/01/2018 DD 01/01/03 SEC ID: 31376J4M8 FNMA POOL#0357430 101.8984 1,253,699.060 1,267,803.17 1,277,499.78 0.29% 9,696.61 5.000%09/01/2018 DD 09/01/03 SEC ID:31376KA71 FNMA POOL#0456482 105.0156 41,444.180 43,270.30 43,522.86 0.01% 252.56 6.000%02/01/2014 DD 02/01/99 SEC ID: 31381CCT2 FNMA POOL#0509649 105.0156 99,586.820 103,974.86 104,581.72 0.02% 606.86 6.000%09/01/2014 DD 09/01/99 SEC ID:31383QEWO FNMA POOL#0535451 105.0156 112,247.890 117,193.81 117,877.82 0.03% 684.01 6.000%06/01/2015 DD 07/01/00 SEC ID: 31384VZQ8 FNMA POOL#0555363 101.9297 302,682,090 311,762.54 308,522.92 0.07% -3,239.62 5.000%04/01/2018 DD 03/01/03 SEC ID:31385W5Y1 FNMA POOL#0555453 101.9297 31,454.660 31,857.68 32,061.64 0.01% 203.96 5.000%05/01/2018 DD 04/01/03 SEC ID: 31385XBW6 111112005 2:24:20PM PST 4 Workbench ' Asset Detail Report ID: GL8013 Base Currency:Mellon Alternate Base Currency: USD by Currency Exchange Rate: OCSD-CONSOLiDATED-OCSG00010000 12/31/2004 Status: FINAL Net Unreallzed Price 'Cost ' Market Value % Of Gain/Loss Description" Base Shares Par Base Base Total:,;: Base FNMA POOL 00555545 101.9297 251,079.580 258,611.98 255,924.64 0.06% -2,687.34 5.000%06/01/2018 DD 05/01/03 SEC ID:31385XES2 FNMA POOL#0555621 101.7283 868,071.860 877,837.67 883,074.77 0.20% 5,237.10 5.0000%07/01/2018 DD 06/01/03 SEC ID: 31385XG68 FNMA POOL#0681309 101.9297 467,041.080 481,052.31 476,053.53 0.11% -4,998.78 5.000%02/01/2018 DD 02/01/03 SEC ID:31391Y3S4 FNMA POOL#0681334 101.9297 56,921.660 58,629.31 58,020.07 0.01% -609.24 5.000%02/01/2018 DD 01/01/03 SEC ID:31391Y4T1 FNMA GTD REMIC P/T 02-76 PD 99.9587 271,370.410 276,797.82 271,258.39 0.06% -5,539.43 5.000%08/25/2022 DD 10/01/02 SEC ID:31392FKF3 FNMA POOL#0684908 101.9297 307,372.190 311,310.41 313,303.52 0.07% 1,993.11 5.000%06/01/2018 DD 05/01/03 SEC ID:31400D3R1 FNMA POOL#0685200 101.9297 167,196.920 169,339.15 170,423.30 0.04% 1,084.15 5.000%03/01/2018 DD 03/01/03 SEC ID:31400EGH7 FNMA POOL 00685665 101.9297 28,848.650 29,714.11 29,405.34 0.01% -308.77 5.000%02/01/2018 DD 02/01/03 SEC ID:31400EW22 FNMA POOL#0686318 101.9297 254,590.620 262,228.34 259,503.43 0.06% -2,724.91 5.000%03/01/2018 DD 03/01/03 SEC ID:31400FPB7 FNMA POOL#0688739 101.8984 100,454.070 103,467.69 102,361.13 0.02% -1,106.56 5.000%06/01/2018 DD 06/01/03 SEC ID:31400JEL9 FNMA POOL#0689859 101.8984 83,407.400 84,476.06 84,990.84 0.02% 514.78 5.000%05/01/2018 DD 05/01/03 SEC ID:3140OKMGB FNMA POOL#0693834 101.9297 556,364.010 573,054.92 567,100.11 0.13% -5,954.81 5.000%03/01/2018 DD 03/01/03 SEC ID:3140OPY74 FNMA POOL#0695852 101.9297 198,831.750 204,796.70 202,668.59 0.05% -2,128.11 5.000%05/01/2018 DD 05/01/03 SEC ID:31400SBVO FNMA POOL#0695889 101.8984 671,983.390 692,142.91 684,740.59 0.16% -7,402.32 5.000%05/01/2018 DD 05/01/03 SEC ID:31400SC23 111112005 2:24:20PM PST 5 Workbench Asset Detail Report M: GL8013 Base Currency: USD Mellon by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 12/31/2004 Status: FINAL Net Unrealized Price Cost`. Market Val>ye % of Gain/Loss Description Base Shares Par Base Base .. ` Total Base FNMA POOL#0697026 101.9297 20,688,810 21,309.49 21,088.04 0.00% -221.45 5.000%05/01/2018 DD 04/01/03 SEC ID: 31400TLF2 FNMA POOL#0702210 101.7283 204,978.480 211,127.83 208,521.13 0.05% -2,606.70 5.000%05/01/2018 DD 05/01/03 SEC ID: 31401ADP9 FNMA POOL 40702328 101.9297 122,766.230 124,339.17 125,135.24 0.03% 796.07 5.000%05/01/2018 DD 04/01/03 SEC ID: 31401AHD2 FNMA POOL#0709148 101.8984 255,479.440 263,143.83 260,329.56 0.06% -2,814.27 5.000%06/01/2018 DD 06/01/03 SEC ID: 31401HZM7 FNMA POOL#0709360 101.8984 577,740.710 585,143.02 588,708.77 0.13% 3,565.75 5.000%07/01/2018 DD 06/01/03 SEC ID:3140IJB56 FNMA POOL#0709826 101.8984 99,414.900 100,688.65 101,302.23 0.02% 613,58 5.000%06/01/2018 DD 06/01/03 SEC ID:31401JSP4 FNMA POOL#0709917 101.9297 206,720.610 209,369.21 210,709.68 0.05% 1,340.47 5.000%06/01/2018 DD 06/01/03 SEC ID:31401JVJ4 FNMA POOL#0709963 101.7283 17,972.260 18,202.54 18,282.88 0.00% 80.34 5.000%06/01/2018 DD 06/01/03 SEC ID:31401JWYO FNMA POOL#0710235 101.8984 547,080.410 563,492.84 557,466.40 0.13% -6,026.44 5.000%06/01/2018 DD 06/01/03 SEC 1D: 31401KBC8 FNMA POOL#0713344 101.8984 15,008.630 15,458.88 15,293.56 0.00% -165.32 5.000%06/01/2018 DD 06/01/03 SEC ID:31401NP52 FNMA POOL#0713365 101.8984 236,631.340 239,663.18 241,123.64 0.05% 1,460.46 5.000%07/01/2018 DD 07/01/03 SEC ID:3140INQSI FNMA POOL#0720319 101.8984 685,676.360 694,461.59 698,693.51 0.16% 4,231.92 5.000%07/01/2018 DD 07/01/03 SEC ID:31401WG45 FNMA POOL#0720369 101.7283 1,984,790.310 2,044,334.02 2,019,093.50 0.46% -25,240.52 5.000%06/01/2018 DD 06/01/03 SEC ID:31401WJNO FNMA POOL#0721629 101.8984 277,383.530 285,705.05 282,649.49 0.06% -3,055.56 5.000%07/01/2018 DD 06/01/03 SEC ID:31401XVW4 111112005 2:24:20PM PST 6 Workbench Asset Detail Report M: GL8013 Base Currency; Mellon by Currency Alternate Base Currency:Mellon Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 12/31/2004 Status: FINAL Net Unrealized Price Cost Market Value %of Gain/Loss Description' Base Shares Par Base' Base Total Base FNMA POOL#0723487 101.8984 230,369.290 232,960.95 234,742.71 0.05% 1,781.76 5.000%06/01/2018 DD 06/01/03 SEC ID:31402AXQ4 FNMA POOL#0729601 101.8984 373,670.680 378,458.34 380,764.59 0.09% 2,306.25 5.000%07/01/2018 DD 07/01/03 SEC ID:31402HRW3 FNMA POOL#0732873 101.9297 32,939.270 33,361.28 33,574.90 0.01% 213.62 5.000% 11/01/2018 DD 10/01/03 SEC ID: 31402MFN5 FNMA POOL#0737130 101.8984 598,332.580 605,998.72 609,691.57 0.14% 3,692.85 5.000% 10/01/2018 DD 10/01/03 SEC ID: 31402S4P9 FNMA POOL#0738211 101.7283 492,463.010 498,772.71 500,974.26 0.11% 2,201.55 5.000% 10/01/2018 DD 10/01/03 SEC ID:31402UDQ2 FNMA POOL#0738487 101.8047 177,623.680 179,899.48 180,829.24 0.04% 929.76 5.000% 10/01/2018 DD 10/01/03 SEC ID:31402UNC2 FNMA POOL#0740471 101.7283 665,337.580 673,862.20 676,836.63 0,15% 2,974.43 5.000% 10/01/2018 DD 10/01/03 SEC ID: 31402WT40 FNMA POOL#0740748 101.8984 728,217.710 737,547.99 742,042.49 0.17% 4,494.50 5.000% 10/01/2018 DD 11/01/03 SEC ID:31402W5H7 FNMA POOL#0743868 101.7283 35,330.100 35,782.76 35,940.71 0.01% 157.95 5.000% 11/01/2018 DD 10/01/03 SEC ID: 31403BMR1 FNMA POOL#0744008 101.8984 944,507.170 956,608.67 962,438.07 0.22% 5,829.40 5.000%07/01/2018 DD 09/01/03 SEC ID: 31403BR54 FNMA POOL#0744316 101.7283 146,579.410 148,457.46 149,112.75 0.03% 655.29 5.000%09/01/2018 DD 09/01/03 SEC ID:31403B3Z4 FNMA POOL#0747914 101.8047 323,114.320 327,254.23 328,945.53 0.07% 1,691.30 5.000% 11/01/2018 DD 11/01/03 SEC ID: 31403F3X0 FNMA POOL#0748400 101.7283 187,273,900 189,673.35 190,510.56 0.04% 837.21 5.000%08/01/2018 DD 09/01/03 SEC ID:31403GNR9 FNMA POOL#0748899 101.6962 905,424.480 917,025.23 920,782.27 0.21% 3,757.04 5.000% 12/01/2018 DD 11/01/03 SEC ID:31403G7L0 111112005 2:24:20PM PST 7 Workbench Asset Detail Report 1D: GL8013 Base Currency: USD Mellon by Currency Alternate Base Currency: Exchange Rate: OCSDCONSOLIDATED-OCSGOOO 10000 12/31/2004 Status: FINAL Net Unrealized Price Cost`- ' Market Value %:of- Gain/Loss Description Base- shares Par Base Base Total Base FNMA POOL#0750377 101.6962 2,025,101.560 2,051,048.17 2,059,451.29 0.47% 8,403.12 5.000% 11/01/2018 DD 11/01/03 SEC ID:31403JUA2 FNMA POOL#0750380 101.6962 1,793,952.020 1,816,937.05 1,824,381.00 0.41% 7,443.95 5.000% 11/01/2018 DD 11/01/03 SEC ID: 31403JUD6 FNMA POOL#0750445 101.6962 166,045.330 168,172.79 168,861.79 0.04% 689.00 5.000% 11/01/2018 DD 11/01/03 SEC ID:31403JWE2 FNMA POOL#0751960 101.7283 756,684.520 766,379.55 769,762.32 0.17% 3,382.77 5.000% 12/01/2018 DD 11/01/03 SEC ID:31403LMHI FNMA POOL#0753425 101.8047 808,660.130 818,010.25 823,253.94 0.190/0 5,243.69 5.000% 11/01/2018 DD 11/01/03 SEC ID: 31403NA23 FNMA POOL#0755165 101.8047 581,719.880 589,173.17 592,218.12 0.13% 3,044.95 5.000% 12/01/2018 DD 11/01/03 SEC ID:31403Q6A3 FNMA POOL#0756372 101.8047 897,613.900 907,992.55 913,813.05 0.21% 5,820.50 5.000% 11/01/2018 DD 11/01/03 SEC ID: 31403SJR8 FORD MOTOR CR CO NT 101.2960 1,000,000.000 965,170.00 1,012,960.00 0.23% 47,790.00 6.750%05/15/2005 DD 05/24/93 SEC ID: 345397GV9 GNMA POOL#0421389 106.0703 9,514.420 9,985.69 10,091.97 0.00% 106.28 6.500%04/15/2026 DD 04/01/96 SEC ID:36206UC23 GNMA POOL#0449851 105.3010 19,830.790 20,813.04 20,882.03 0.00% 68.99 6.500%01/15/2028 DD 01/01/98 SEC ID:36208FWLO GNMA POOL#0466845 106.0078 32,712.240 34,332.52 34,677.53 0.01% 345.01 6.500%06/15/2028 DD 06/01/98 SEC ID: 36209BTA6 GNMA POOL#0468052 105.9766 110,880.130 116,372.16 117,506.95 0.03% 1,134.79 6.500%07/15/2028 DD 07/01/98 SEC ID: 36209CSM4 GNMA POOL#0476041 105.8047 137,259.500 143,843.68 145,226.99 0.03% 1,383.31 6.500%06/15/2028 DD 06/01/98 SEC ID:36209MZE7 GNMA POOL#0478626 105.9766 120,625.210 126,411.45 127,834.45 0.03% 1,423.00 6.500%01/15/2029 DD 01/01/99 SEC ID:36209QVT9 1/11/2005 2:24:20PM PST 8 Workbench Asset Detail Report m: GL8013 Mellon Base Currency: vsD by Currency Alternate Base Currency: Exchange Rate: OCSaCONSOLIDATED-OCSGOOO10000 12/31/2004 Status: FINAL Net Unrealized Price Cost Market.Value %,of Gain/Loss Description Base. Shares Par Base'...'.. Base Total Base GNMA POOL#0480598 105.9766 28,774.610 30,154.88 30,494.34 0.01% 339.46 6.500% 10/15/2028 DD 10/01/98 SEC ID:36209S3F6 GNMA POOL#0512235 105.9766 8,392.020 8,807.68 8,893.57 0.00% 85.89 6.500% 11/15/2029 DD 11/01/99 SEC ID:36211GBC6 GNMA POOL#0514326 105.9766 106,140.040 111,231.43 112,483.56 0.03% 1,252.13 6.500%07/15/2029 DD 07/01/99 SEC ID: 36211JLF2 GNMA II POOL#0080023 102.0852 163,510,000 166,218.13 166,919.51 0.04% 701.38 VAR RT 12/20/2026 DD 12/01/96 SEC ID:36225CAZ9 GNMA II POOL#080088M 101.4036 207,631.740 212,173.69 210,545.96 0.05% -1,627.73 7.375%06/20/2027 DD 06/01/97 SEC ID:36225CC20 GNMA II POOL#0080395 101.4316 179,458.230 177,831.89 182,027.26 0.04% 4,195.37 VAR RT 04/20/2030 DD 04/01/00 SEC ID: 36225CNM4 GNMA II POOL 6080408X 101.4308 1,622,802.930 1,606,321.33 1,646,021.18 0.37% 39,699.85 VAR RT 05/20/2030 DD 05/01/00 SEC ID:36225CN28 GNMA II POOL#0080965 100.8604 1,359,988.470 1,359,138.47 1,371,689.13 0.31% 12,550.66 VAR RT 07/20/2034 DD 07/01/04 SEC ID:36225DCB8 GENERAL ELEC CAP MTN#TR 00526 100.0310 8,500,000.000 8,505,004.00 8,502,635.00 1.93% -2,369.00 VAR RT 03/15/2005 DD 03/20/02 SEC ID: 36962GXX7 GOLDMAN SACHS GRP MTN 100.1870 3,500,000.000 3,507,850.50 3,506,545.00 0.79% -1,305.50 #TR00194 VAR RT 10/27/2006 DD 10/29/03 SEC ID:38141EJB6 GOLDMAN SACHS GRP MTN 100.3280 800,000.000 800,000.00 802,624.00 0.18% 2,624.00 #TR00207 VAR RT 07/23/2009 DD 07/23/04 SEC ID:38141EJQ3 GNMA GTD REMIC TR 2000-9 PH 100.6700 498,064.540 498,064.54 501,401.57 0.11% 3,337.03 VAR RT 02/16/2030 SEC ID:3837H4NX9 MORGAN STANLEY NT 99.4370 3,200,000.000 3,149,248.00 3,181,984.00 0.72% 32,736.00 3.875%01/15/2009 DD 01/13/04 SEC ID:61746BALO 111112005 2:24:20PM PST 9 Workbench Asset Detail Report ID: GL8013 /' Base Currency: USD Mellon by Currency Alternate Base Currency: OCSCONSOLIDATED-OCSG00010000 12/31/2004 Exchange Rate: D� Status: FINAL Net Unrealized Price Cost... Market Valuie % of . C:aia/Loss Description Base-` Shares Par Base Base Total Base NORWEST FINL INC NT 101.5780 150,000.000 153,084.00 152,367.00 0.03% -717.00 7.600%05/03/2005 DD 05/03/00 SEC ID:669383DX6 RESIDENTIAL ASSET 03-RS 11 AIIB 100.0313 640.256.220 640,256.22 640,456.62 0.15% 200.40 VAR RT 12/25/2033 DD 12/30/03 SEC ID: 760985K83 SBA GTD DEV PARTN 2001-20C 1 107.6550 2,985,923.500 2,985,923.50 3,214,495.94 0.73% 228,572.44 6.340%03/01/2021 SEC ID: 83162CWO SBA GTD PARTN CTFS SBIC-PS 01 106.1250 1,920,261.520 1,920,261.52 2,037,877.54 0.46% 117,616.02 6.640%02/10/2011 DD 02/21/01 SEC ID:831641DD4 UNITED AIRLS PASSTHRU 01-1 C 4.6080 1,600,000.000 1,600,000.00 73,728.00 0.02% -1,526,272.00 6.831%03/01/2010 DD 08/22/01 SEC ID: 909317BC2 U S TREASURY BILL 98.9350 3,300,000.000 3,261,060.00 3,264,855.00 0.74% 3,795.00 0.000%06/09/2005 DD 12/09/04 SEC ID:912795SSI U S TREASURY NOTES 106.4690 20,000,000.000 22,620,312.50 21,293,800.00 4.83% -1,326,512.50 06.250%02/15/2007 DD 02/15/97 SEC ID: 9128272JO US TREASURY INFLATION INDEX NT 105.9375 16,889,740.000 14,971,798.33 17,892,568.31 4.06% 2,920,769.98 3.375%01/15/2007 DD 01/15/97 SEC ID: 9128272M3 US TREASURY INFLATION INDEX NT 108.9690 3,549,330.000 3,858,831.35 3,867,669.41 0.88% 8,838.06 3.625%01/15/2008 DD 01/15/98 SEC ID:9128273T7 US TREASURY INFLATION INDEX NT 112.1095 15,151,240.000 16,776,600.11 16,985,979.41 3.85% 209,379.30 3.875%01/15/2009 DD 01/15/99 SEC ID:9128274Y5 U S TREASURY NOTES 102.5940 3,900,000.000 4,288,149.14 4,001,166.00 0.91% -286,983.14 05.750% 11/15/2005 DD II/15/00 SEC ID:9128276N7 U S TREASURY NOTES 99.7100 17,600,000.000 17,405,000.00 17,548,960.00 3.98% 143,960.00 3.375% 12/15/2008 DD 12/15/03 SEC ID:912828BT6 U S TREASURY NOTES 99.7600 27,500,000.000 27,463,468.63 27,434,000.00 6.22% -29,468.63 2.750%06/30/2006 DD 06/30/04 SEC ID: 912828CMO U S TREASURY NOTES 99.7100 49,000,000.000 49,103,927.41 48,857,900.00 11.08% -246,027.41 2.750%07/31/2006 DD 07/31/04 SEC ID:912828CQI 111112005 2:24:20PM PST 10 Workbench Asset Detail Report ID: GL8013 Base Currency: USD / Mellon by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 12/31/2004 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base . Shares Par Base: Base Total Base U S TREASURY NOTES 99.0300 55,300,000.000 55,048,031.25 54,763,590.00 12.41% -284,441.25 2.375%08/31/2006 DD 08/31/04 SEC ID: 912828CU2 U S TREASURY NOTES 99.7200 20,800,000.000 20,717,574.59 20,741,760.00 4.70% 24,185.41 2.875% 11/30/2006 DD 11/30/04 SEC ID: 912828DD9 U S TREASURY NOTES 99.5500 14,000,000.000 13,953,610.30 13,937,000.00 3.16% -16,610.30 3.500% 12/15/2009 DD 12/15/04 SEC ID:912828DE7 VIRGINIA ELEC&PWR 01 SERA 102.9370 1,750,000.000 1,743,840.00 1,801,397.50 0.41% 57,557.50 5.750%03/31/2006 DD 03/27/01 SEC ID: 927804ENO TOTAL FIXED INCOME SECURITIES 381,439,030.030 385,913,794.66 385,671,508.24 87.43% -242,286.42 TOTAL ASSETS U.S. DOLLAR 507,293,695.060 441,371,352.33 441,129,065.91 100.00% -242,286.42 TOTAL ASSETS-BASE: 507,293,695.060 441,371,352.33 441,129,065.91 100.000% -242,286.42 111112005 2:24:20PM PST 11 Workbench Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -0CSG00010000 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Trap Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base RECEIPTS AND DISBURSEMENT TRANSACTIONS CASH/SECURITIES RECEIVED FROM PLAN ADMINISTRATOR U.S. DOLLAR CD REPS PLAN CONTRIBUTION 12/21/2004 0.000 18,700,000.00 18,700,000.00 0.00 SEC ID:NA9123459 OCSF07522202:LONGTERM OPER-PIMCO 12/21/2004 OTHER ADMINISTRATIVE EXPENSES U.S.DOLLAR CD REIMBURSEMENT TO CLIENT A/C FOR PIMCO 12/1/2004 0.000 520.83 520.83 0.00 TRADING ERROR SEC ID: NA9123459 12/1/2004 OCSF0751 1102:LIQUID OPER-PIMCO CD REIMBURSEMENT TO CLIENT A/C FOR PIMCO 12/1/2004 0.000 441.67 441.67 0.00 TRADING ERROR SEC ID:NA9123459 12/1/2004 OCSF0751 1102:LIQUID OPER-PIMCO TOTAL OTHER ADMINISTRATIVE EXPENSES U.S. DOLLAR 0.000 962.50 962.50 0.00 TOTAL OTHER ADMINISTRATIVE EXPENSES BASE: 0.000 962.50 962.50 0.00 TOTAL RECEIPTS AND DISBURSEMENT TRANSACTIONS BASE: 0.000 18,700,962.50 18,700,962.50 0.00 PURCHASES CASH&CASH EQUIVALENTS U.S. DOLLAR B FEDERAL HOME LN BK CONS DISC MAT 12/30/2004 99.9946 200,000.000 199,989.28 -199,989.28 0.00 12/31/2004 12/30/2004 SEC ID:313384V48 BROKER: CREDIT SUISSE FIRST BOSTON 12/30/2004 CORP,N Y OCSF07522202:LONGTERM OPER-PIMCO 111112005 2:27:20PM PST Workbench 1 Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATEDMF2:J❑00❑❑00❑0❑ 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Traa Settle Date Price Cost Amount Net-Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B FEDERAL HOME LN BK CONS DISC MAT 12/31/2004 99.9896 10,900,000.000 10,898,864.58 -10,898,864.58 0.00 01/03/2005 12/31/2004 SEC ID:313385ACO 12/31/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07522202:LONG TERM OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 12/31/2004 99.8343 10,100,000.000 10,083,267.67 -10,083,267.67 0.00 01/28/2005 12/31/2004 SEC ID:313385BD7 12/31/2004 BROKER: JP MORGAN CHASE BANK/HSBCI, NEW YORK OCSF07522202:LONG TERM OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 12/8/2004 99.4136 3,000,000.000 2,982,406.67 -2,982,406.67 0.00 03/09/2005 12/8/2004 SEC ID:313385CV6 12/8/2004 BROKER:JP MORGAN CHASE BANK/HSBCI, NEW YORK OCSF07511102:LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 12/14/2004 99.3971 2,000,000.000 1,987,942.50 -1,987,942.50 0.00 03/15/2005 12/14/2004 SEC ID:313397DB4 12/14/2004 BROKER:JP MORGAN CHASE BANK/HSBCI, NEW YORK OCSF0751 1102:LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 12/15/2004 99.4050 4,000,000.000 3,976,200.00 -3,976,200.00 0.00 03/15/2005 12/15/2004 SEC ID:313397DB4 12/15/2004 BROKER: GOLDMAN SACHS&CO, NY OCSF0751 1102:LIQUID OPER-PIMCO B FEDERAL NATL MTG ASSN DISCOUNT MAT 12/1/2004 99.4173 800,000.000 795,338.78 -795,338.78 0.00 03/02/2005 12/1/2004 SEC ID:313589CN1 12/1/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07522202:LONGTERM OPER-PIMCO 111112005 2:27:20PM PST Workbench 2 Transaction Detail Report ID: EW13009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATED 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Traa Settle Date Price . Cost - Amount, Net Clain/Loss '. Type Description Reported Date Base Shares/Par Base Base Base B FEDERAL NATL MTG ASSN DISCOUNT MAT 12/1/2004 99.4173 6,000,000.000 5,965,040.83 -5,965,040.83 0.00 03/02/2005 12/1/2004 SEC ID:313589CN1 12/1/2004 BROKER: MORGAN STANLEY&CO INC, NY OCSF07511102:LIQUID OPER-PIMCO B FEDERAL NATL MTG ASSN DISCOUNT MAT 12/9/2004 99.4150 1,000,000.000 994,150.00 -994,150.00 0.00 03/09/2005 12/9/2004 SEC ID:313589CV3 12/9/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07511102:LIQUID OPER-PIMCO B FEDERAL NATL MTG ASSN DISCOUNT MAT 12/29/2004 99.3756 500,000.000 496,878.19 -496,878.19 0.00 03/30/2005 12/29/2004 SEC ID:313589DS9 12/29/2004 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07522202:LONGTERM OPER-PIMCO B UBS AG STAMFORD BRH INSTL C/D VAR RT 12/15/2004 99.9550 10,000,000.000 9,995,500.00 -9,995,500.00 0.00 07/05/2005 DD 07/02/04 12/16/2004 SEC ID:90261GE47 BROKER: LEHMAN GOVT SECS INC, NY 12/15/2004 OCSF07522202:LONGTERM OPER-PIMCO IB UBS AG STAMFORD BRH INSTL C/D VAR RT 12/15/2004 99.9550 0.000 0.00 -39,136.1 1 0.00 07/05/2005 DD 07/02/04 12/16/2004 SEC ID:90261GE47 BROKER: LEHMAN GOVT SECS INC, NY 12/15/2004 OCSF07522202:LONGTERM OPER-PIMCO B LEHMAN CAT 2 REPO 01.890%12/02/2004 DD 12/1/2004 100.0000 12,800,000.000 12,800,000.00 -12,800,000.00 0.00 12/01/04 12/1/2004 SEC ID:9942BL802 12/1/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 01.910% 12/2/2004 100.0000 12,900,000.000 12,900,000.00 -12,900,000.00 0.00 12/03/2004 DD 12/02/04 12/2/2004 SEC ID:99428M925 12/2/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO 1/11/2005 2:27:20PM PST Workbench 3 Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED_II,2:1'7000'7RG700 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Trap Settle Date Price Cost Amount Net Gain/Loss Tape Description Reported Date Base Shares/Par Base Base Base B LEHMAN CAT 1 REPO REPO 01.970% 12/3/2004 100.0000 10,900,000.000 10,900,000.00 -10,900,000.00 0.00 12/06/2004 DD 12/03/04 12/3/2004 SEC ID:99428P662 12/3/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 01.910%12/07/2004 DD 12/6/2004 100.0000 11,200,000,000 11,200,000.00 -11,200,000.00 0.00 12/06/04 12/6/2004 SEC ID:99428Q595 12/6/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 01.930%12/08/2004 DD 12/7/2004 100.0000 11,200,000.000 11,200,000.00 -11,200,000.00 0.00 12/07/04 12/7/2004 SEC ID:994285427 12/7/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 01.960% 12/8/2004 100.0000 13,200,000.000 13,200,000.00 -13,200,000.00 0.00 12/09/2004 DD 12/08/04 12/8/2004 SEC ID:99428T896 12/8/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 01.990% 12/9/2004 100.0000 12,200,000.000 12,200,000.00 -12,200,000.00 0.00 12/10/2004 DD 12/09/04 12/9/2004 SEC ID:99428V180 12/9/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 02.040% 12/10/2004 100,0000 12,200,000.000 12,200,000.00 -12,200,000.00 0.00 12/13/2004 DD 12/10/04 12/10/2004 SEC ID:99428W964 12/10/2004 BROKER: LEHMAN GOVTSECS INC, NY OCSF07511102:LIQUID OPER-PIMCO B CREDIT SUISSE FB REPO 02.090%12/14/2004 12/13/2004 100.0000 12,200,000.000 12,200,000.00 -12,200,000.00 0.00 DD 12/13/04 12/13/2004 SEC ID:99428Y499 12/13/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07511102:LIQUID OPER-PIMCO 1/11/2005 2:27.20PM PST Workbench 4 Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D3 ii2�1=00D❑❑❑❑❑ 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B LEHMAN CAT 2 REPO 02.160%12/15/2004 DD 12/14/2004 100.0000 11,000,000.000 11,000,000.00 -11,000,000.00 0.00 12/14/04 12/14/2004 SEC ID:9942SZ769 BROKER: LEHMAN GOUT SECS INC, NY 12/14/2004 OCSF07511102:LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 02.150%12/16/2004 DD 12/15/2004 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 12/15/04 12/15/2004 SEC ID:9942913290 BROKER: LEHMAN GOUT SECS INC, NY 12/15/2004 OCSF07511102:LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 02.120%12/17/2004 DD 12/16/2004 100.0000 10,300,000.000 10,300,000.00 -10,300,000.00 0.00 12/16/04 12/16/2004 SEC ID:99429C900 BROKER: LEHMAN GOVT SECS INC, NY 12/16/2004 OCSF07511102:LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 02.060%12/20/2004 DD 12/17/2004 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 12/17 04 SEC ID:99429E666 12/17/2004 BROKER: LEHMAN GOVT SECS INC, NY 12/17/2004 OCSF07511102:LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 02.020%12/21/2004 DD 12/20/2004 100.0000 10,300,000.000 10,300,000.00 -10,300,000.00 0.00 12/20/04 12/20/2004 SEC ID:9942917788 12/20/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO B CREDIT SUISSE FB REPO 01.950%12/22/2004 12/21/2004 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 DD 12/21/04 12/21/2004 SEC ID:994291-1347 BROKER: CREDIT SUISSE FIRST BOSTON 12/21/2004 CORP,N Y OCSF07511102:LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 02.060%12/23/2004 DD 12/22/2004 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 12/22/04 12/22/2004 SEC ID:99429KO19 12/22/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO 111112005 2:27:20PM PST Workbench 5 Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D_H1,20:100❑0❑❑❑❑u 12/1/2004 - 12/31/2004 Status: PrNAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base, Shares/Par Base Base Base B LEHMAN CAT 2 REPO 02.090%12/27/2004 DD 12/23/2004 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 12/23/04 12/23/2004 SEC ID:99429L421 12/23/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 02.080%12/28/2004 DD 12/27/2004 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 12/27/04 12/27/2004 SEC ID:99429M767 12/27/2004 BROKER: LEHMAN GOVTSECS INC, NY OCSF0751 1102:LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 01.900%12/29/2004 DD 12/28/2004 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 12/28/04 12/28/2004 SEC ID:99429P380 12/28/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF0751 1102:LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 01.800% 12/29/2004 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 12/30/2004 DD 12/29/04 12/29/2004 SEC ID:99429Q701 12/29/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF0751 1102:LIQUID OPER-PIMCO B LEHMAN CAT REPO 01.860%12/31/2004 DD 12/30/2004 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 12/30/04 12/30/2004 SEC ID:99429SI78 12/30/2004 BROKER: LEHMAN GOVT SECS INC,NY OCSF0751 1102:LIQUID OPER-PIMCO B LEHMAN CAT 1 REPO REPO 01.650% 12/31/2004 100.0000 12,300,000.000 12,300,000.00 -12,300,000.00 0.00 01/03/2005 DD 12/31/04 12/31/2004 SEC ID:99429T630 12/31/2004 BROKER: LEHMAN GOVTSECS INC,NY OCSF0751 1102:LIQUID OPER-PIMCO B DREYFUS TREASURY CASH MGMT 12/1/2004 1.0000 236.607.780 236,607.78 -236,607.78 0.00 SEC ID:996085247 12/1/2004 OCSF0751 1102:LIQUID OPER-PIMCO 12/1/2004 B DREYFUS TREASURY CASH MGMT 12/2/2004 1.0000 6,692.690 6,692.69 -6,692.69 0.00 SEC ID:996085247 12/2/2004 OCSF07522202:LONG TERM OPER-PIMCO 12/2/2004 111112005 2:27:20PM PST Workbench 6 . L tpvagx-jom LSd WdOZ:LZ:z SOOz/I T/f b00Z/bi/Zi 00WId-N3doa1flbI-I:ZOTIISLOdS00 b00Z/bT/ZT LtZS80966:a103S 00'0 8L'SOL'TSO`Z- 8L'SOL'ISO`Z 08L'90L`IS0`Z 0000'1 b00Z/bT/ZI IWDW HSVO ANf1SV3Nl SrldAS2Ha 8 b00Z/£T/Z I 00WId-N3dO alflbI'I:ZOT I ISLUS00 b00Z/£i/ZI L17ZS80966:a103S 00'0 00'17LO'Z- 00'bL0'Z 000,tL0'Z 0000'1 b00Z/£T/ZI LWOW HSVO ANf1SV3N,L sndnNa 8 b00Z/£T/ZI 00Wld-N3d0 WN3,LON0'I:Z0Z6ZSL0dS00 b00Z/£T/ZI LK980966:01 03S 00'0 L8'96L'IZ- L8'96L`IZ OL8'96L'IZ OOOO'T b00Z/£i/ZT IWOW HSV3 xAnsvau sniAmi a ti00Z/01/ZT 00WId-N3d0 alnbl'T:ZOI T ISL03SO0 b00Z/Oi/ZT LbZS80966:0 03S 00'0 6£'bL9- 6£'tL9 06£'bL9 0000'1 b00Z/Oi/ZT IWOW HSVO ANnSV3NL SngA3NQ 8 b00Z/6/ZT 00WId-N3doambl'i:Z0IIISL0.gS00 b00Z/6/ZT LbZ980966:UI03S 00'0 L9'89S'9- L9'89S'9 OL9'899'9 0000'I b00Z/6/ZI LWOW HSVO kdnSV32LL Sn,4A3Na 8 b00Z/8/ZT 00WHd-N3d0 alflb'I mll TSL03S00 b00Z/8/ZT LbZS80966:aI33S 00'0 LL'£6I`81- LL'£61`8I OLL'£61'81 00001 b00Z/8/ZT IWOW HSVO AMSVaNU SngA3Na 8 b00Z/L/ZI 00WId-N3dO Qlflbl'I:ZOIi ISL03S00 VOOZ/L/ZI LK990966:01 03S 00'0 ZZ'1769- ZZ176S OZZ'ti65; 0000'1 b00Z/L/ZI IWOW HSVO AZInSd3N.L SnAA3Na 8 b00Z/9/ZI 00WId-83dO alflbl'I:ZOI I ISLOAS00 b00Z/9/Z T LKS 80966:01 03 S 00'0 Z6'£OL'Z- Z6'£OL'Z OZ6'£OL`Z 0000'1 b00Z/9/Zi IWOW HSVO ANflSV3N,L SfldA3Na H b00Z/£/Zi 00W1d-83dO alflbl'I:ZOTI TSL0dS00 b006/£/ZT LK980966:Gl MS 00'0 Si'IOS'9- SI'TOS'9 OST'TOS'9 0000'1 b00Z/£/ZT .LWOW HSVO ANnSV3NI SnAA3Na 8 b00Z/£/ZT 00Wld-N3d0 WN31 ONO'I:ZOZZZSLOdS30 b006/£/ZT LbZS80966:GI 03S 00'0 Ib'SLL'i- Itr'SLL'I Oib'SLL'I 0000'1 VOOZ/£/ZT IWOW HSVO ANnSVZ8,L Sfl3A3Na 8 assg as>sg , asBg "a/sajv{s asgg a;sQ papodag uondposaa addy ego, 3aH ;unoury :ISO as a3gQ a�;as a;gQ.apw L FI aVMI3 :sn;e; G iiia S b00Z/TE/Z� - �OOZ/i/ZT ❑❑G❑❑G❑❑❑❑ 3.LVaI'loSN00-ClSOo asn :Aauauno asug Ajo2aj80 uopousuleiy Aq papodag MS :aI podag imea uopousulmiL �Q�' � Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D= 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base g DREYFUS TREASURY CASH MGMT 12/15/2004 1.0000 645,490.640 645,490.64 -645,490.64 0.00 SEC ID:996085247 12/15/2004 OCSF07522202:LONGTERM OPER-PIMCO 12/15/2004 B DREYFUS TREASURY CASH MGMT 12/16/2004 1.0000 2,000,734.580 2,000,734.58 -2,000,734.58 0.00 SEC ID:996085247 12/16/2004 OCSF07511102:LIQUID OPER-PIMCO 12/16/2004 g DREYFUS TREASURY CASH MGMT 12/20/2004 1.0000 2,002,111.500 2,002,111.50 -2,002,111.50 0.00 SEC ID:996085247 12/20/2004 OCSF07511102:LIQUID OPER-PIMCO 12/20/2004 B DREYFUS TREASURY CASH MGMT 12/20/2004 1.0000 112,731.180 112,731.18 -112,731.18 0.00 SEC ID:996085247 12/20/2004 OCSF07522202:LONGTERM OPER-PIMCO 12/20/2004 g DREYFUS TREASURY CASH MGMT 12/22/2004 1.0000 666.250 666.25 -666.25 0.00 SEC ID:996085247 12/22/2004 OCSF07511102:LIQUID OPER-PIMCO 12/22/2004 B DREYFUS TREASURY CASH MGMT 12/23/2004 1.0000 703.830 703.83 -703.83 0.00 SEC ID:996085247 12/23/2004 OCSF07511102:LIQUID OPER-PIMCO 12/23/2004 B DREYFUS TREASURY CASH MGMT 12/27/2004 1.0000 2,856.330 2,856.33 -2,856.33 0.00 SEC ID:996085247 12/27/2004 OCSF07511102:LIQUID OPER-PIMCO 12/27/2004 B DREYFUS TREASURY CASH MGMT 12/27/2004 1.0000 686,267.130 686,267.13 -686,267.13 0.00 SEC ID:996085247 12/27/2004 OCSF07522202:LONGTERM OPER-P1MCO 12/27/2004 B DREYFUS TREASURY CASH MGMT 12/28/2004 1.0000 710.670 710.67 -710.67 0.00 SEC ID:996085247 12/28/2004 OCSF07511102:LIQUID OPER-PIMCO 12/28/2004 B DREYFUS TREASURY CASH MGMT 12/29/2004 1.0000 649.170 649.17 -649.17 0.00 SEC ID:996085247 12/29/2004 OCSF07511102:LIQUID OPER-PIMCO 12/29/2004 111112005 2:27:20PM PST Workbench 8 Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-M12D:10 70=10 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B DREYFUS TREASURY CASH MGMT 12/30/2004 1.0000 615.000 615.00 -615.00 0.00 SEC ID:996085247 12/30/2004 OCSF07511102:LIQUID OPER-PIMCO 12/30/2004 B DREYFUS TREASURY CASH MGMT 12/31/2004 1.0000 12,294,135.340 12,294,135.34 -12,294,135.34 0.00 SEC ID:996085247 12/31/2004 OCSF07511102:LIQUID OPER-PIMCO 12/31/2004 B DREYFUS TREASURY CASH MGMT 12/31/2004 1.0000 382,114.620 382,114.62 -382,114.62 0.00 SEC ID:996085247 12/31/2004 OCSF07522202:LONG TERM OPER-PIMCO 12/31/2004 B BSDT-LATE MONEY DEPOSIT ACCT 12/17/2004 1.0000 16,566.390 16,566.39 -16,566.39 0.00 SEC ID:996087094 12/17/2004 OCSF07522202:LONGTERM OPER-PIMCO 12/17/2004 B BSDT-LATE MONEY DEPOSIT ACCT 12/21/2004 1.0000 18,700,000.000 18,700,000.00 -18,700,000.00 0.00 SEC ID:996087094 12/21/2004 OCSF07522202:LONGTERM OPER-PIMCO 12/21/2004 B BSDT-LATE MONEY DEPOSIT ACCT 12/30/2004 1.0000 6,693.300 6,693.30 -6,693.30 0.00 SEC ID:996087094 12/30/2004 OCSF07522202:LONGTERM OPER-PIMCO 12/30/2004 TOTAL CASH&CASH EQUIVALENTS U.S.DOLLAR: 351,108,934.580 350,984,513.08 -351,023,649.19 0.00 TOTAL CASH&CASH EQUIVALENTS BASE: 351,108,934.580 350,984,513.08 -351,023,649.19 0.00 FIXED INCOME SECURITIES U.S. DOLLAR B COMMIT TO PUR FNMA SF MTG 5.000% 11/16/2004 101.4453 500,000.000 507,226.56 -507,226.56 0.00 12/01/2019 DD 12/01/04 12/16/2004 SEC ID:01F0504C7 12/1/2004 BROKER: BARCLAYS CAPITAL INC,NEW YORK OCSF07522202:LONGTERM OPER-PIMCO 1/11/2005 2:27:20PM PST Workbench 9 Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D=:):1000,00000 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Tran Settle Date Vice Cost Amount" Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B COMMIT TO PUR FNMA SF MTG 5.000% 12/13/2004 101.6719 22,000,000.000 22,367,812.50 -22,367,812.50 0.00 01/01/2020 DD 0 1/01/05 1/19/2005 SEC ID:0IF050411 12 13/2004 BROKER: UBS SECURITIES LLC,STAMFORD / OCSF07522202:LONGTERM OPER-PIMCO B COMMIT TO PUR FNMA SF MTG 5.500% 12/8/2004 101.6250 3,000,000.000 3,048,750.00 -3,048,750.00 0.00 01/01/2034 DD 0 1/01/04 1/13/2005 SEC ID:01FO52615 12/8/2004 BROKER: GOLDMAN SACHS&CO, NY OCSF07522202:LONGTERM OPER-PIMCO B COMMIT TO PUR FNMA SF MTG 5.500% 12/8/2004 101.6094 1,000,000.000 1,016,093.75 -1,016,093.75 0.00 01/01/2034 DD 0 1/01/04 1/13/2005 SEC ID:01F052615 12/8/2004 BROKER: LEHMAN GOVTSECS INC, NY OCSF07522202:LONGTERM OPER-PIMCO B GENERAL ELEC CAP MTN 41TR 00526 VAR RT 12/14/2004 100.0424 6,000,000.000 6,002,544.00 -6,002,544.00 0.00 03/15/2005 DD 03/20/02 12/17/2004 SEC ID:36962GXX7 12/14/2004 BROKER: CITIGROUP GBL MKTS/SALOMON, NEW YORK OCSF07522202:LONGTERM OPER-PIMCO IB GENERAL ELEC CAP MTN €fTR 00526 VAR RT 12/14/2004 100.0424 0.000 0.00 -871.67 0.00 03/15/2005 DD 03/20/02 12/17/2004 SEC ID:36962GXX7 12/14/2004 BROKER: CITIGROUP GBL MKTS/SALOMON, / NEW YORK OCSF07522202:LONGTERM OPER-PIMCO B U S TREASURY BILL DUE 06/09/2005 12/14/2004 98.8200 3,300,000.000 3,261,060.00 -3,261,060.00 0.00 SEC ID:912795SSI 12/14/2004 BROKER: MORGAN STANLEY&CO INC, NY 12/14/2004 OCSF0751 1102:LIQUID OPER-PIMCO B U S TREASURY BILL DUE 12/15/2004 DD 12/1/2004 99.9345 2,000,000.000 1,998,690.00 -1,998,690.00 0.00 12/03/2004 12/3/2004 SEC ID:912795TF8 12/1/2004 BROKER: GOLDMAN SACHS&CO, NY OCSF07511102:LIQUID OPER-PIMCO 111112005 2:27:20PM PST Workbench 10 Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: LISD OCSD-CONSOLI DATE D7[1T ADJ3GGJF=100 12/1/2004 - 12/31/2004 Status: FINAL. Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date °Base Shares/Par Base Base Base B UNITED STATES TREASURY NT 2.875% 12/21/2004 99.7070 20,800,000.000 20,739,062.50 -20,739,062.50 0.00 11/30/2006 DD 11/30/04 12/22/2004 SEC ID:912828DD9 BROKER: BARCLAYS CAPITAL INC,NEW YORK 12/21/2004 OCSF07522202:LONGTERM OPER-PIMCO IB UNITED STATES TREASURY NT 2.875% 12/21/2004 99.7070 0.000 0.00 -36,142.86 0.00 11/30/2006 DD 11/30/04 12/22/2004 SEC ID:912828DD9 BROKER: BARCLAYS CAPITAL INC,NEW YORK 12/21/2004 OCSF07522202:LONG TERM OPER-PIMCO B US TREASURY NOTES 2.875%11/30/2006 DD 12/27/2004 99.6037 20,800,000.000 20,717,574.59 -20,717,574.59 0.00 11/30/04 1/19/2005 SEC 1D:912828DD9 BROKER: GOLDMAN SACHS&CO, NY 12/27/2004 OCSF07522202:LONGTERM OPER-PIMCO IB US TREASURY NOTES 2.875%11/30/2006 DD 12/27/2004 99.6037 0.000 0.00 -82,142.86 0.00 11/30/04 1/19/2005 SEC ID:912828DD9 BROKER: GOLDMAN SACHS&CO, NY 12/27/2004 OCSF07522202:LONGTERM OPER-PIMCO B US TREASURY NOTES 3.500%12/15/2009 DD 12/8/2004 99.7728 14,000,000.000 13,968,187.66 -13,968,187.66 0.00 12/15/04 12/15/2004 SEC ID:912828DE7 12/8/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07522202:LONGTERM OPER-P1MC0 B US TREASURY NOTES 3.500%12/15/2009 DD 12/13/2004 99.6686 14,000,000.000 13,953,610.30 -13,953,610.30 0.00 12/15/04 1/18/2005 SEC ID:912828DE7 12/13/2004 BROKER: GOLDMAN SACHS&CO, NY OCSF07522202:LONGTERM OPER-PIMCO IB US TREASURY NOTES 3.500%12/15/2009 DD 12/13/2004 99.6686 0.000 0.00 -45,769.23 0.00 12/15/04 1/18/2005 SEC ID:912828DE7 12/13/2004 BROKER: GOLDMAN SACHS &CO, NY OCSF07522202:LONGTERM OPER-PIMCO 111112005 2.27:20PM PST Workbench 11 Transaction Detail Report M: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED=- .- DD00000OD❑0 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Settle Date Price Cost Amount Net Gain/Loss Tran Type Description Reported Date Base Shares/Par Base, Base Base TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: 107,400,000.000 107,580,611.86 -107,745,538.48 0.00 TOTAL FIXED INCOME SECURITIES BASE: 107,400,000.000 107,580,611.86 -107,745,538.48 0.00 TOTAL PURCHASES BASE: 458,508,934.580 458,565,124.94 -458,769,187.67 0.00 PAY UPS FIXED INCOME SECURITIES U.S. DOLLAR PU US TREASURY INFLATION INDEX NT 3.375% 7/15/2004 100.0000 86,660.000 86,660.00 -86,660.00 0.00 01/15/2007 DD 01/15/97 7/15/2004 SEC ID:9128272M3 12/1/2004 OCSF07522202:LONG TERM OPER-PIMCO PU US TREASURY INFLATION INDEX NT 3.625% 7/15/2004 100.0000 18,210.000 18,210.00 -18,210.00 0.00 01/15/2008 DD 01/15/98 7/15/2004 SEC ID:9128273T7 12/1/2004 OCSF07522202:LONG TERM OPER-PIMCO PU US TREASURY INFLATION INDEX NT 3.875% 7/15/2004 100.0000 77,740.000 77,740.00 -77,740.00 0.00 01/15/2009 DD 01/15/99 7/15/2004 SEC ID:9128274Y5 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR 182,610.000 182,610.00 -182,610.00 0.00 TOTAL FIXED INCOME SECURITIES BASE: 182,610.000 182,610.00 -182,610.00 0.00 TOTAL PAY UPS BASE: 182,610.000 182,610.00 -182,610.00 0.00 SALES CASH&CASH EQUIVALENTS U.S.DOLLAR 111112005 2:27:20PM PST Workbench 12 1 Transaction Detail Report M: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-u19770u�:770700 12/1/2004 - 12/31/2004 Status: FINAL Trade Date ET;; Description Settle Date iceCost Amount Net Gain/Loss Reported Date Base Shares/Par Base . Base Base S FEDERAL HOME LN MTG CORP DISC MAT 12/16/2004 99.2718 -2,700,000.000 -2,680,338.00 2,680,338.00 0.00 03/14/2005 12/16/2004 SEC ID:313397DA6 BROKER: LEHMAN GOUT SECS INC, NY 12/16/2004 OCSF07522202:LONGTERM OPER-PIMCO IS FEDERAL HOME LN MTG CORP DISC MAT 12/16/2004 99.2718 0.000 0.00 4,812.00 0.00 03/14/2005 12/16/2004 SEC ID:313397DA6 12/16/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07522202:LONG TERM OPER-PIMCO S FEDERAL HOME LN MTG CORP DISC MAT 12/17/2004 99.2718 -800,000.000 -794,174.22 794,174.22 0.00 03/14/2005 12/17/2004 SEC ID:313397DA6 12/17/2004 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07522202:LONGTERM OPER-PIMCO IS FEDERAL HOME LN MTG CORP DISC MAT 12/17/2004 99.2718 0.000 0.00 1,379.11 0.00 03/14/2005 12/17/2004 SECID:313397DA6 12/17/2004 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07522202:LONGTERM OPER-PIMCO S FEDERAL NATL MTG ASSN DISCOUNT MAT 12/16/2004 99.7306 -400,000.000 -398,922.50 398,922.50 0.00 01/07/2005 12/16/2004 SEC ID:313589AG8 BROKER: MORGAN STANLEY 8s CO INC, NY 12/16/2004 OCSF07522202:LONGTERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 12/16/2004 99.7306 0.000 0.00 571.50 0.00 01/07/2005 12/16/2004 SEC ID:313589AG8 BROKER: MORGAN STANLEY&CO INC, NY 12/16/2004 OCSF07522202:LONG TERM OPER-PIMCO S FEDERAL NATL MTG ASSN DISCOUNT MAT 12/16/2004 99.4499 -2,900,000.000 -2,884,047.99 2,884,047.99 0.00 02/16/2005 12/16/2004 SEC ID:313589BY8 12/16/2004 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07522202:LONGTERM OPER-PIMCO 111112005 2:27:20PM PST Workbench 13 Transaction Detail Report m: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-00NSOLI DATE D_HFl77❑❑❑❑❑❑❑❑❑ 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Tran Settle:Date Price Cost Amount Net Gain/Loss, Type Description Reported Date . Base Shares/Par Base Base Base IS FEDERAL NATL MTG ASSN DISCOUNT MAT 12/16/2004 99.4499 0.000 0.00 4,714.51 0.00 02/16/2005 12/16/2004 SEC ID:313589BY8 12/16/2004 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07522202:LONG TERM OPER-PIMCO S FEDERAL NATL MTG ASSN DISCONT MAT 12/16/2004 99.4357 -3,100,000.000 -3,082,507.17 3,082,507.17 0.00 02/23/2005 12/16/2004 SEC ID:313589CF8 12/16/2004 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07522202:LONGTERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCONT MAT 12/16/2004 99.4357 0.000 0.00 4,124.08 0.00 02/23/2005 12/16/2004 SEC ID:313589CF8 12/16/2004 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07522202:LONGTERM OPER-PIMCO S FEDERAL NATL MTG ASSN DISCOUNT MAT 12/16/2004 99.4173 -800,000.000 -795,338.78 795,338.78 0.00 03/02/2005 12/16/2004 SEC ID:313589CNl 12/16/2004 BROKER: CHASE SECURITIES,NEW YORK OCSF07522202:LONG TERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 12/16/2004 99.4173 0.000 0.00 759.89 0.00 03/02/2005 12/16/2004 SEC ID:313589CNI 12/16/2004 BROKER: CHASE SECURITIES,NEW YORK 0CSF07522202:LONG TERM OPER-PIMCO S GENERAL ELEC CAP DISC 02/04/2005 12/17/2004 99.3200 -4,600,000.000 -4,568,720.00 4,568,720.00 0.00 SEC ID:36959HP43 12/17/2004 BROKER: BANC OF AMERICA SEC LLC,SAN 12/17/2004 FRANCISCO OCSF07522202:LONGTERM OPER-PIMCO IS GENERAL ELEC CAP DISC 02/04/2005 12/17/2004 99.3200 0.000 0.00 16,566.39 0.00 SEC 1D:36959HP43 12/17/2004 BROKER: BANC OF AMERICA SEC LLC,SAN 12/17/2004 FRANCISCO OCSF07522202:LONGTERM OPER-PIMCO 111112005 2:27:20PM PST Workbench 14 1 Transaction Detail Report ID: EWBO09 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED=❑❑❑OD.❑J ]300 12/1/2004 - 12/31/2004 Status: FINAL. Trade Date 7pe Settle Date Price Cost Amount Net Gain/Loss Description Reported Date Base Shares/Par Base Base Base S GENERAL ELEC CAP DISC 02/04/2005 12/22/2004 99.3200 -2,000,000.000 -1,986,400.00 1,986,400.00 0.00 SEC ID:36959HP43 12/22/2004 BROKER: MERRILL LYNCH PIERCE FENNER 12/22/2004 SMITH INC NY OCSF07522202:LONG TERM OPER-PIMCO IS GENERAL ELEC CAP DISC 02/04/2005 12/22/2004 99.3200 0.000 0.00 7,904.44 0.00 SEC ID:36959HP43 12/22/2004 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY 12/22/2004 OCSF07522202:LONGTERM OPER-PIMCO S CREDIT SUISSE FB REPO 01.900%12/01/2004 12/1/2004 100.0000 -13,000,000.000 -13,000,000.00 13,000,000.00 0.00 DD 11/30/04 12/1/2004 SEC ID:99428KO85 12/1/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF0751 1102:LIQUID OPER-PIMCO IS CREDIT SUISSE FB REPO 01.900%12/01/2004 12/1/2004 100.0000 0.000 0.00 686.11 0.00 DD 11/30/04 12/1/2004 SEC ID:99428KO85 12/1/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF0751 1102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 01.890%12/02/2004 DD 12/2/2004 100.0000 -12,800,000.000 -12,800,000.00 12,800,000.00 0.00 12/01/04 12/2/2004 SEC ID:99428L802 12/2/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.890%12/02/2004 DD 12/2/2004 100.0000 0.000 0.00 672.00 0.00 12/01/04 12/2/2004 SEC ID:99428L802 12/2/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF0751 1102:LIQUID OPER-PIMCO S LEHMAN CAT 1 REPO REPO 01.910% 12/3/2004 100.0000 -12,900,000.000 -12,900,000.00 12,900,000.00 0.00 12/03/2004 DD 12/02/04 12/3/2004 SEC ID:99428M925 12/3/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF0751 1102:LIQUID OPER-PIMCO 111112005 2:27:20PM PST Workbench 15 Transaction Detail Report LD: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D-MVD❑❑❑nDEIDD00 12/1/2004 - 12/31/2004 Status: FINAL, Trade Date Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IS LEHMAN CAT 1 REPO REPO 01.910% 12/3/2004 100.0000 0.000 0.00 684.42 0.00 12/03/2004 DD 12/02/04 12/3/2004 SEC ID:99428M925 12/3/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 1 REPO REPO 01.970% 12/6/2004 100.0000 -10,900,000,000 -10,900,000.00 10,900,000.00 0.00 12/06/2004 DD 12/03/04 12/6/2004 SEC ID:9942SP662 12/6/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 01.970% 12/6/2004 100.0000 0.000 0.00 1,789.42 0.00 12/06/2004 DD 12/03/04 12/6/2004 SEC ID:99428P662 12/6/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 01.910%12/07/2004 DD 12/7/2004 100.0000 -11,200,000.000 -11,200,000.00 11,200,000.00 0.00 12/06/04 12/7/2004 SEC ID:99428Q595 12/7/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.910%12/07/2004 DD 12/7/2004 100.0000 0.000 0.00 594.22 0.00 12/06/04 12/7/2004 SECID:99428Q595 12/7/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT2 REPO 01.930%12/08/2004 DD 12/8/2004 100.0000 -11,200,000.000 -11,200,000.00 11,200,000.00 0.00 12/07/04 12/8/2004 SEC ID:994285427 12/8/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.930%12/08/2004 DD 12/8/2004 100.0000 0.000 0.00 600.44 0.00 12/07/04 12/8/2004 SEC ID:994285427 12/8/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO 111112005 2:27:20PM PST Workbench 16 LI youagxlom sSd WdW-'ZZZ SOXITTIT OOWId-MScI0 Qlnbl']:ZOT I ISLOdSOO A N'dM00 400Z/4T/ZT NO.LS08,LS2[Id3SSInS.LIGZSD213A0218 400Z/4T/ZT 664A8Z466:QI03S 40/ET/Zi Q4 00'0 00'000'OOZ'ZI 00'000'OOZ'ZT- 000'000'OOZ'ZT- 0000*001 400Z/4T/Zl 400Z4I/ZT%o60'ZO Od3M 83 3SSInS,L MSD S OOWId-NSdO alnbl'I:ZOTI ISLOdSOO 400Z/£T/ZT AN 'ONI S03S,LA00 NVWH3'1 :NSMONH 496MM,66:0I 03S 400Z/ET/ZT 4o/OT/ZI aQ 400Z/£T/ZT 00'0 o0'4L0'Z 00'0 000'0 0000*001 VOOZ/ET/ZT %040'ZO OdaN OdSN I LV0 NVWH3'I SI OOWId-N3d0 Qlnbll:ZOTI ISLOdSOO 4o0Z/ET/Zl AN 'ONIS03SJA00NVWH3'I2I3 OSS 400Z/£T/ET 496M8Z466:dl 03S 4o/ol/ZI as 4003/£l/ZT 00'0 00'0o0'OOZ'EI OO'000'OOZ`ZT- 000'000'OOZ'ZI- 0000'001 400Z/ET/ZI %040'ZO Od3N Od2a T,LVO NVWH3'I S OOWid-2IHdO 01nbI'I:ZOIT TSLOdS00 400Z/OI/EI AN 'ON[ S03SJA00 NVWH3'1 :N3NONG 400E/Oi/ZT 08TAM,66:01 03S 4O/60/ZI 4Q 400Z/01/ZT 00'0 6E'4L9 00'0 000'0 0000'OO1 400Z/OI/ZT %066'TO Odad Od3N I IV NVWHS I SI 0OWId-N3dO aln011:ZOI I TSLOdSDO 400Z/O1/ZT AN 'ONI S03S JAOD NVWH3'I :SS)IMie 400E/ot/El 08TASZ466:QIO2S 40/60/ZI Qa 4o0Z/0I/ZT 00'0 00'000'OOE'Zi 00'000'OOZ'ZI- OOO'000'OOZ'ZT- 0000'OOI 400E/01/ZT %066'I0OdSHOdaUI,LVONVWH39 S 0OWId-N3dO QInbri:mi i ISLOdS00 400Z/6/ZI AN 'ONI S33S IA00 NVWH3-1 :ZlaXONG 40oZ/6/ZI 96818Z466:Ul OHS 40/8o/Zl as 400Z/60/ZI 00'0 L9'81L 00'0 000'0 0000'OO1 400Z/6/ZI %096'TO OdUd Od3S 1.LVO NVWH3'I SI OOWld-83dO Q lnbl'I:ZOI I I SLOdSOO 400Z/6/ZI AN 'ONI S03S,LAOO NVWH21 : 1IMOSG VOOZ/6/Z I 968.L8Z466:QI 03S 40/80/ZT Q4 400Z/60/ZI 00'0 00'0o0'OOZ'ET OO'000'OOZ'EI- 000'000'OOZ'El- 0000'001 400E/6/ZT %096'TOOdadOd28I.LV3NVWH3'1 S asBg, asgg assS. d/sa S asBg alva papodag u0ndposecl add, ssoZ/U"J MI ;unoury moo, as a;BQ smaSUvjL 76009Z 'boot/T£/ZT - vooZ/T/ZT DoLoOcl0OOCC.�-43.LVQI'IOSN00-QSoo azzn0 ases fao2op3 uopoesusiy Aq popodag uollewpodoa jislaQ uOT;aBsul 1 f, Transaction Detail Report m: EVM009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-'m`D000:1n=1❑D 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IS CREDIT SUISSE FB REPO 02.090%12/14/2004 12/14/2004 100.0000 0.000 0.00 708.28 0.00 DD 12/13/04 12/14/2004 SEC ID:99428Y499 12/14/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 02.160%12/15/2004 DD 12/15/2004 100.0000 -11,000,000.000 -11,000.000.00 11,000,000.00 0.00 12/14/04 12/15/2004 SEC ID:99428Z769 12/15/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 02.160%12/15/2004 DD 12/15/2004 100.0000 0.000 0.00 660.00 0.00 12/14/04 12/15/2004 SEC ID:99428Z769 12/15/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 02.150%12/16/2004 DD 12/16/2004 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 12/15/04 12/16/2004 SEC ID:994296290 12/16/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 02.150%12/16/2004 DD 12/16/2004 100.0000 0.000 0.00 734.58 0.00 12/15/04 12/16/2004 SEC ID:9942913290 12/16/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 02.120%12/17/2004 DD 12/17/2004 100.0000 -10,300,000.000 -10,300,000.00 10,300,000.00 0.00 12/16/04 12/17/2004 SEC ID:99429C900 12/17/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 02.120%12/17/2004 DD 12/17/2004 100.0000 0.000 0.00 606.56 0.00 12/16/04 12/17/2004 SEC ID:99429C900 12/17/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO 111112005 2:27:20PM PST Workbench 18 Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D❑❑0❑07❑O=IOD 12/1/2004 - 12/31/2004 Status: FINAL. Trade Date Tran Settle Date Cost Amount Net Gain/Loss TYPe Description Reported Date Base Shares/Par Base Base Base S LEHMAN CAT 2 REPO 02.060%12/20/2004 DD 12/20/2004 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 12/17/04 12/20/2004 SEC 1D:99429E666 BROKER: LEHMAN GOUT SECS INC, NY 12/20/2004 OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 02.060%12/20/2004 DD 12/20/2004 100.0000 0.000 0.00 2,111.50 0.00 12/17/04 12/20/2004 SEC ID:99429E666 BROKER: LEHMAN GOUT SECS INC, NY 12/20/2004 OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 02.020%12/21/2004DD 12/21/2004 100.0000 -10.300,000.000 -10,300,000.00 10,300,000.00 0.00 12/20/04 12/21/2004 SEC ID:99429F788 BROKER: LEHMAN GOUT SECS INC, NY 12/21/2004 OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 02.020%12/21/2004 DD 12/21/2004 100.0000 0.000 0.00 577.94 0.00 12/20/04 12/21/2004 SEC ID:99429F788 BROKER: LEHMAN GOUT SECS INC, NY 12/21/2004 OCSF07511102:LIQUID OPER-PIMCO S CREDIT SUISSE FB REPO 01.950%12/22/2004 12/22/2004 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 DD 12/21/04 12/22/2004 SEC ID:99429H347 12/22/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07511102:LIQUID OPER-PIMCO IS CREDIT SUISSE FB REPO 01.950%12/22/2004 12/22/2004 100.0000 0.000 0.00 666.25 0.00 DD 12/21/04 12/22/2004 SEC ID:994291-1347 BROKER: CREDIT SUISSE FIRST BOSTON 12/22/2004 CORP,N Y OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 02.060%12/23/2004 DD 12/23/2004 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 12/22/04 12/23/2004 SEC ID:99429KO19 BROKER: LEHMAN GOUT SECS INC, NY 12/23/2004 OCSF07511102:LIQUID OPER-PIMCO 111112005 2:27:20PM PST Workbench 19 Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED=J-�1OOO:1OOJOO 12/1/2004 - 12/31/2004 status: FINAL Trade Date Tran Settle Date Pride Cost . Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IS LEHMAN CAT 2 REPO 02.060%12/23/2004 DD 12/23/2004 100.0000 0.000 0.00 703.83 0.00 12/22/04 12/23/2004 SEC ID:99429KO19 12/23/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 02.090%12/27/2004 DD 12/27/2004 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 12/23/04 12/27/2004 SEC ID:99429L421 12/27/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 02.090%12/27/2004 DD 12/27/2004 100.0000 0.000 0.00 2,856.33 0.00 12/23/04 12/27/2004 SEC ID:994291,421 12/27/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 02.080%12/28/2004 DD 12/28/2004 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 12/27/04 12/28/2004 SEC ID:99429M767 12/28/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 02.080%12/28/2004 DD 12/28/2004 100.0000 0.000 0.00 710.67 0.00 12/27/04 12/28/2004 SEC ID:99429M767 12/28/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT REPO 01.900%12/29/2004 DD 12/29/2004 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 12/28/04 12/29/2004 SEC ID:99429P380 12/29/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.900%12/29/2004 DD 12/29/2004 100.0000 0.000 0.00 649.17 0.00 12/28/04 12/29/2004 SEC ID:99429P380 12/29/2004 BROKER: LEHMAN GOVT SECS INC,NY OCSF07511102:LIQUID OPER-PIMCO 111112005 2:27:20PM PST Workbench 20 1 Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED=07000:300DOO 12/1/2004 - 12/31/2004 status: FINAL Trade Date Trap Settle Date Price Cot Amonat Net"0min/Loss Type Description Reported Date Base Shares/Par Base Base Base S LEHMAN CAT 1 REPO REPO 01.800% 12/30/2004 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 12/30/2004 DD 12/29/04 12/30/2004 SEC ID:99429Q701 BROKER: LEHMAN GOUT SECS INC, NY 12/30/2004 OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 01.800% 12/30/2004 100.0000 0.000 0.00 615.00 0.00 12/30/2004 DD 12/29/04 12/30/2004 SEC ID:99429Q701 BROKER: LEHMAN GOVTSECS INC, NY 12/30/2004 OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT REPO 01.860%12/31/2004 DD 12/31/2004 100.0000 -12,300,000.000 -12,300,000.00 12,300,000.00 0.00 12/30/04 12/31/2004 SEC ID:994295178 12/31/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.860%12/31/2004 DD 12/31/2004 100.0000 0.000 0.00 635.50 0.00 12 30/04 SEC ID:994295178 12/31/2004 BROKER: LEHMAN GOVT SECS INC, NY 12/3I/2004 OCSF07511102:LIQUID OPER-PIMCO S DREYFUS TREASURY CASH MGMT 12/1/2004 1.0000 -195,338.660 -195,338.66 195,338.66 0.00 SEC ID:996085247 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO 12/1/2004 S DREYFUS TREASURY CASH MGMT 12/2/2004 1.0000 -253,330.330 -253,330.33 253,330.33 0.00 SEC ID:996085247 12/2/2004 OCSF07511102:LIQUID OPER-PIMCO 12/2/2004 S DREYFUS TREASURY CASH MGMT 12/15/2004 1.0000 -2,059,895.070 -2,059,895.07 2,059,895.07 0.00 SEC ID:996085247 12/15/2004 OCSF07511102:LIQUID OPER-PIMCO 12/15/2004 S DREYFUS TREASURY CASH MGMT 12/16/2004 1.0000 -55,630.270 -55,630.27 55,630.27 0.00 SEC ID:996085247 12/16/2004 OCSF07522202:LONG TERM OPER-PIMCO 12/16/2004 111112005 2:27:20PM PST Workbench 21 Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE 13=2J-]000OOO000 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base S DREYFUS TREASURY CASH MGMT 12/17/2004 1.0000 -639,142.340 -639,142.34 639,142.34 0.00 SEC ID:996085247 12/17/2004 OCSF07522202:LONGTERM OPER-PIMCO 12/17/2004 S DREYFUS TREASURY CASH MGMT 12/17/2004 1.0000 -1,999,393.440 -1,999,393.44 1,999,393.44 0.00 SEC ID:996085247 12/17/2004 OCSF07511102:LIQUID OPER-PIMCO 12/17/2004 S DREYFUS TREASURY CASH MGMT 12/21/2004 1.0000 -1,999,422.060 -1,999,422.06 1,999,422.06 0.00 SEC ID:996085247 12/21/2004 OCSF07511102:LIQUID OPER-PIMCO 12/21/2004 S DREYFUS TREASURY CASH MGMT 12/22/2004 1.0000 -80,900.920 -80,900.92 80,900.92 0.00 SEC ID:996085247 12/22/2004 OCSF07522202:LONG TERM OPER-PIMCO 12/22/2004 S DREYFUS TREASURY CASH MGMT 12/29/2004 1.0000 -496,878.190 -496,878.19 496,878.19 0.00 SEC ID:996085247 12/29/2004 OCSF07522202:LONGTERM OPER-PIMCO 12/29/2004 S DREYFUS TREASURY CASH MGMT 12/30/2004 1.0000 -199,989.280 -199,989.28 199,989.28 0.00 SEC ID:996085247 12/30/2004 OCSF07522202:LONGTERM OPER-PIMCO 12/30/2004 S BSDT-LATE MONEY DEPOSIT ACCT 12/20/2004 1.0000 -16,566.390 -16,566.39 16,566.39 0.00 SEC ID:996087094 12/20/2004 OCSF07522202:LONGTERM OPER-PIMCO 12/20/2004 S BSDT-LATE MONEY DEPOSIT ACCT 12/22/2004 1.0000 -18,700,000.000 -18,700,000.00 18,700,000.00 0.00 SEC ID:996087094 12/22/2004 OCSF07522202:LONG TERM OPER-PIMCO 12/22/2004 S BSDT-LATE MONEY DEPOSIT ACCT 12/31/2004 1.0000 -6,693.300 -6,693.30 6,693.30 0.00 SEC ID:996087094 12/31/2004 OCSF07522202:LONG TERM OPER-PIMCO 12/31/2004 TOTAL CASH&CASH EQUIVALENTS U.S.DOLLAR -308,103,180.250 -307,993,628.91 308,055,190.11 0.00 111112005 2:27.20PM PST Workbench 22 , Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED=3D000--1❑❑❑❑❑ 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base TOTAL CASH 8c CASH EQUIVALENTS BASE: -308,103,180.250 -307,993,628.91 308,055,190.11 0.00 FIXED INCOME SECURITIES U.S. DOLLAR S COMMIT TO PUR FNMA SF MTG 5.000% 12/13/2004 101.9063 -22,000,000.000 -22,316,250.00 22,419,375.00 103,125.00 12/01/2019 DD 12/01/04 12/16/2004 SEC ID:01F0504C7 BROKER: UBS SECURITIES LLC, STAMFORD 12/13/2004 OCSF07522202:LONG TERM OPER-PIMCO S COMMIT TO PUR FNMA SF MTG 5.000% 12/14/2004 101.8594 -500,000.000 -507,226.56 509,296.87 2,070.31 12/01/2019 DD 12/01/04 12/16/2004 SEC ID:01170504C7 BROKER: BARCLAYS CAPITAL INC,NEW YORK 12/14/2004 OCSF07522202:LONG TERM OPER-PIMCO S COMMIT TO PUR FNMA SF MTG 5.500% 12/8/2004 101.8789 -3,000,000.000 -3,039,931.64 3,056,367.18 16,435.54 12/01/2034 DD 12/01/04 12/13/2004 SEC ID:01FO526C1 12/8/2004 BROKER: GOLDMAN SACHS&CO, NY OCSF07522202:LONGTERM OPER-PIMCO S COMMIT TO PUR FNMA SF MTG 5.500% 12/8/2004 101.8672 -1,000,000.000 -1,013,310.54 1,018,671.87 5,361.33 12/01/2034 DD 12/01/04 12/13/2004 SEC ID:01F0526C1 12/8/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202:LONGTERM OPER-PIMCO S US TREASURY NOTES 2.875%11/30/2006 DD 12/27/2004 99.6563 -20,800,000.000 -20,739,062.50 20,728,500.00 -10,562.50 11/30/04 12/31/2004 SEC ID:912828DD9 12/27/2004 BROKER: GOLDMAN SACHS&CO, NY OCSF07522202:LONG TERM OPER-PIMCO IS US TREASURY NOTES 2.875%11/30/2006 DD 12/27/2004 99.6563 0.000 0.00 50,928.57 0.00 11/30/04 12/31/2004 SEC ID:912828DD9 12/27/2004 BROKER: GOLDMAN SACHS&CO, NY OCSF07522202:LONGTERM OPER-PIMCO 111112005 2:27:20PM PST Workbench 23 Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D�u,l❑❑❑❑❑DOOD00 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base S US TREASURY NOTES 3.500%12/15/2009 DD 12/13/2004 99.8438 -14,000,000.000 -13,968,187.66 13,978,125.00 9,937.34 12/15/04 12/15/2004 SEC ID:912828DE7 12/13/2004 BROKER: GOLDMAN SACHS&CO, NY OCSF07522202:LONGTERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: -61,300,000.000 -61,583,968.90 61,761,264.49 126,367.02 TOTAL FIXED INCOME SECURITIES BASE: -61,300,000.000 -61,583,968.90 61,761,264.49 126,367.02 TOTAL SALES BASE: -369,403,180.250 -369,577,597.81 369,816,454.60 126,367.02 PRINCIPAL PAYMENTS FIXED INCOME SECURITIES U.S. DOLLAR PD WMP/HUNTOON PAIGE#000-11150 7.500% 12/1/2004 100.0000 -836.470 -818.30 836.47 18.17 12/01/2030 DD 10/21/99 12/1/2004 SEC ID:302998GE3 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FHLMC MULTIC LASS MTG SER E3 A VAR RT 12/1/2004 100.0000 -17,584.400 -17,603.13 17,584.40 -18.73 08/15/2032 DD 12/01/97 12/1/2004 SEC ID:3133TCE95 12/1/2004 OCSF07522202:LONG TERM OPER-PIMCO PD FHLMC GROUP978-6064 6.384%O1/01/2028 12/1/2004 100.0000 -2,015.380 -1,966.25 2,015.38 49.13 DD 12/01/97 12/1/2004 SEC ID:31348SWZ3 12/1/2004 OCSF07522202:LONG TERM OPER-PIMCO PD FNMA POOL#0254510 5.000%11/01/2017 12/1/2004 100.0000 -12,531.050 -12,906.98 12,531.05 -375.93 DD 10/01/02 12/1/2004 SECID:31371KVB4 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FNMA POOLN0254631 5.000%02/01/2018 12/1/2004 100.0000 -2,698.410 -2,779.36 2,698.41 -80.95 DD 01/01/03 12/1/2004 SEC ID:31371KY47 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO 1/11/2005 2:27.20PM PST Workbench 24 1 SZ zpua43IfoM 1Sd WdOZ-LZZ SOOZ/I I/I b00Z/T/ZI OOWId-ssd0 YMS.L0NO'I:ZOZZZSLOdS00 b00Z/T/ZT OM3aE8£IE:QI 03S 66/10/60 QQ S9'L£- Ob'bS8 SO'Z68- OOb'bS8- 0000*001 b00Z/T/ZT tI0Z/T0/60%000'9 6b96090#'100d VWNJ ad b00Z/i/ZT OOWid-X3d0 M310N0n:Z0ZZZSL0dSO0 b00Z/T/ZT U00I8£iE U 038 66/10/ZO QQ 8£'8I- ZVLTV OS'SEb- OZT'LTb- 0000'001 b00Z/i/Zi tIOZ/I0/ZO%000'9 Z8b9Sb0#'IOOd VWNA Qd b00Z/i/Zi OOWId-213dO M31 JNO'I:ZOZZZSLO.gSOO b00Z/I/ZT ILVA9L£T£:QIOSS £O/10/60 QQ 6b'19£- £E'ZEI'ZE Z8'E6b'Z£- 0££'ZEi'ZE- 0000*001 b00Z/I/ZI 8TOZ/I0/60%000'9 0£bL9EO#'IOOd VWNd Qd b00Z/i/Zi OOWid-N3dO WSSIONO'IMZZZSLOdSOO b00Z/I/ZT MINLEIE U Oss EO/TO/TO QQ 01'8- LWOLZ LT'8LZ- OLO'OLZ- 0000'001 1,00Z/I/ZI STOZ/IO/TO%000'S SZ£LS£0#100d VWN3 (Id b00Z/T/ZT OOWId-SSdO MaLONO'I:ZOZZZSLOdSOO b00Z/I/Zi OWZ.LbL£I£:QI 03S 66/10/60 QO 90'Z61- ZL'89E'b 8L'OSS'b- OZL'82£'b- 0000*001 b00Z/T/Z1 tIOZ/10/b0%000'9 086EZ OV10Od VWNd Qd b00Z/i/Zi OOMd-S3d0 WN3.LONOl:Z0ZZZSLodSOO b00Z/T/Z T 9bd'I T L£T£=QI 03S EO/TO/iT QQ 6L'96I- LI'T8Z'ST 96'9Lb'91- OLT'I8Z'ST- 0000*001 bOOZ/T/ZT 8IOZ/10/ZI%000'S 486b9Z0#'IOOd VWNq (id b00Z/T/ZT OOWId-NZdO MZION0'I:ZOZZZSLOASOO b00Z/i/Zi IZ3'IILET£:QI 03S EO/TO/OT QQ £I'Z9- 6£'6b8'b ZS'IT6'b- 06E'6b8'b- 0000*001 b00Z/I/ZI STOZ/10/I1%000'S E96bSZ0#'IOOd VWN3 Qd b00Z/i/ZT OOWId-213dO YMSI0N0'I:ZOZZZSLOdS00 b00Z/T/ZT £H0ITLETE:G1 Oss £0/i0/80 QQ S9'bL0'T 68'901'1- OS9'bL0'T- 0000'001 b00Z/T/ZT STOZ/10/60%000'S 998bSZO#Iood VWN.J Qd b00Z/T/ZT OOWtd-213d0 M&LON0'I:ZOZZZSLOdSOO b00Z/I/ZT 6A9XILE1£:QI038 £0/TO/SO QQ 6Z'99- 6Z'9LT'Z 8S'IbZ'Z- 06Z'9LT'Z- 0000*001 b00Z/I/ZI 810Z/10/90%000'S 09LbSZO#100d VWNd Qd asuS a to a oda a iCy assg _ :. :asiag assg s. 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tiooZ/T/ZT D�LCIOCDOOLE�Q3J.VQIIOSN00-QSOO asn :eSauannO aseg ,uolap3 uoi}aysu8jy Aq papodag u(�'jew ' :QI:podaa >os;aQ uoF4aBsu7sil Transaction Detail Report M: EWBOO9 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D211207000000700 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base PD FNMA POOL#0685200 5.000%03/01/2018 12/1/2004 100.0000 -3,335.710 -3,378.45 3,335.71 -42.74 DD 03/01/03 12/1/2004 SEC ID:31400EGH7 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FNMA POOL#0685665 5.000%02/01/2018 12/1/2004 100.0000 -650.370 -669.88 650.37 -19.51 DD 02/01/03 12/1/2004 SEC ID:31400EW22 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FNMA POOL#0686318 5.000%03/01/2018 12/1/2004 100.0000 -3,699.500 -3,810.49 3,699.50 -110.99 DD 03/01/03 12/1/2004 SEC ID:31400FP87 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FNMA POOL#0688739 5.000%06/01/2018 12/1/2004 100.0000 -1,571.670 -1,618.82 1,571.67 -47.15 DD 06/01/03 12/1/2004 SEC ID:31400JEL9 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FNMA POOL#0689859 5.000%05/01/2018 12/1/2004 100.0000 -382.780 -387.68 382.78 -4.90 DD 05/01/03 12/1/2004 SEC ID:31400KMG8 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FNMA POOL#0693834 5.000%03/01/2018 12/1/2004 100.0000 -15,515.300 -15,980.76 15,515.30 -465.46 DD 03/01/03 12/1/2004 SEC ID:3140OFY74 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FNMA POOL#0695852 5.000%05/01/2018 12/1/2004 100.0000 -5,572.700 -5,739.88 5,572.70 -167.18 DD 05/01/03 12/1/2004 SEC ID:31400SBVO 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FNMA POOL#0695889 5.000%05/01/2018 12/1/2004 100.0000 -5,935.380 -6,113.44 5,935.38 -178.06 DD 05/01/03 12/1/2004 SEC ID:31400SC23 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FNMA POOL#0697026 5.000%05/01/2018 12/1/2004 100.0000 -807.540 -831.77 807.54 -24.23 DD 04/01/03 12/1/2004 SEC ID:31400TLF2 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO 111112005 2:27:20PM PST Workbench 27 ' 8Z tpuaq3(aoM sSd TNdOZ.'LZ:Z GOOVII/[ b0oZ/T/r,T OOWId-S2ldO M3IONO'I:ZOZZZSLOJSOO b00r,/i/ZI ZSdNIObTE:Ql03S EO/TO/90 QQ 179'9- £Z'iZZ L8'LZZ- 0£Z'IZr,- 0000'OO1 VOOZ/T/ZT STOZ/TO/90%000'S ttt7£ETLO#100d VWNd ad b0or,/I/61 OOWId-S3dO WN31ONO'I:ZOZZZSLOdSOO b00r,/i/ZI 83aX i0bi£:Gl 03S £0/TO/90 QO T6'06Z- 80'L69'6 66'L86'6- 080'G69'6- 0000'001 tOOZ/I/ZI 8Tor,/TO/90%000'S S£ZOILO#'IOOd VWNd ad b00Z/T/Zi OOW]d-N3dO W2MONO'I:ZOZZZSLOSSOO b00Z/i/ZI OA Af'TOtrT£:Cl OSS co/To/90 au 66'0- LS'GG 99'8L- OLS'LL- 0000*001 b00Z/I/ZI 8i0Z/T0/90%000'S £9660L0#'I00d VWNd (Id boor,/T/ZT O3WId-M3dO WZ131ONO'I:ZOZZZSL03SOO t,PAf i0t,T£:QI 03S b00Z/i/r,T £0/IO/90 aQ Sb'IS- bb'SIO't' 68'990'b- Obb'SIO'b- 0000,OOI b00Z/T/ZI SIOZ/TO/90%000'S L1660LO#'I00d VWNq ad bOOZ/T/r,T O3WId-N2dO M211`JNCn:ZOZZZSLOASOO b00Z/T/Z I bd b Sf'i0I E:GI OSS co/To/90 QO 66'TZ- Z£'91L'T t£'8£G'I- OZ£'9IL'I- 0000*001 VOOZ/T/ZI 8TOZ/TO/90%000'S 9Z860L0#'I00d VWN3 Qd b00Z/T/Zi OOWId-Zl3dO M31ONO'l:ZOZZZSL03SOO b00r,/I/Z T 9S8['TOOT£:QI 33S EO/IO/90 OQ 88'9S- 60'6£b'b L6'S6b'b- 060'6£b'b- 0000'OOI bOOZ/i/ZT STOZ/TO/LO%000'S 09£60L0#'IOOd VWNd ad b00Z/i/ZI OOWId-2I3dO WNSIJNO'I:ZOZZZSL0ESOO b00r,/I/Zi LWZH TOt7T E:Ql 03S EO/IO/90 Q4 £T'TOT- Zi'IL£'£ SZ'ZLb'£- OZT'IL£'E- 0000'OO1 b00Z/T/ZI 8i0Z/T0/90%000'S 8b160L0#'I00d VWNJ Qd b00Z/i/ZT OOWId-M3dO MSIONO'7:ZOZZZSLOdSOO b00Z/T/ZT ZOHVIObT£:QIO3S EO/TO/to 4Q 9L'Lb- b6'LZ4'E OL'SLL'£- Ob6'LZL'E- 0000'OO1 bOOZ/I/Zi 8TOZ/TO/SO%000'S 8Z£ZOLO#'I00d Mid dd b00Z/i/ZT 0OWId-Zl3dO WN31.ONOVZ06ZZS40dS30 b00r,/i/ZT 6dCIVIObTE:QIO3S EO/IO/SO aQ L9'Z£- 0U680'I LL'IZT'T- 00I'680'1- 0000*001 b00Z/I/ZI 8TOZ/TO/SO%000'S OTZZOLO#'IO0d VWN3 Qd astag asBg asBg . jvd/saxsgg . asBg a;taQ pavodou uoildKasaQ adA sswl/lquo;am ;unOWV ;sod aa�d a3gQ aipaS utaiL awa aplass F VKI3 :sn;s;s 'b00Z/T£/ZT - 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tooZ/T/ZT aacooEaooc� mG3JVa1'1OSNO0•QSoo asn :SouaunO aseg Ajo4aT83 uotjaBsuExy Aq papodag uQllaw :aI uodaH ipg3aQ u0poususuy Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE DM2J ❑DD=❑D7DG 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base PD GNMA II POOL#0080395 VAR RT 04/20/2030 12/1/2004 100.0000 -5,433.490 -5,384.25 5,433.49 49.24 DD 04/01/00 12/1/2004 SEC ID:36225CNM4 OCSF07522202:LONG TERM OPER-PIMCO 12/1/2004 PD GNMA II POOL11080408X 6.500%05/20/2030 12/1/2004 100.0000 -55,822.310 -55,255.36 55,822.31 566.95 DD 05/01/00 12/1/2004 SECID:36225CN28 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD GNMA II POOL#0080965 VAR RT 07/20/2034 12/1/2004 100.0000 -13,618.350 -13,609.84 13,618.35 8.51 DD 07/01/04 12/1/2004 SEC ID:36225DCB8 OCSF07522202:LONG TERM OPER-PIMCO 12/1/2004 PD GNMA GTD REMIC TR 2000-9 FH VAR RT 12/16/2004 100.0000 -16,558.560 -16,558.56 16,558.56 0.00 02/16/2030 12/16/2004 SEC ID:3837H4NX9 OCSF07522202:LONG TERM OPER-PIMCO 12/16/2004 PD RESIDENTIAL ASSET 03-RS1 1 AIIB VAR RT 12/25/2004 100.0000 -43,309.020 -43,309.02 43,309.02 0.00 12/25/2033 DD 12/30/03 12/25/2004 SEC ID:760985K83 12/25/2004 OCSF07522202:LONG TERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: -699,769.290 -709,747.37 699,769.29 -9,978.08 TOTAL FIXED INCOME SECURITIES BASE: -699,769.290 -709,747.37 699,769.29 -9,978.08 TOTAL PRINCIPAL PAYMENTS BASE: -699,769.290 -709,747.37 699,769.29 -9,978.08 MATURITIES CASH 8s CASH EQUIVALENTS U.S.DOLLAR MT FEDERAL HOME LN BK CONS DISC N MAT 12/1/2004 100.0000 -600,000.000 -599,967.83 599,967.83 0.00 12/01/2004 12/1/2004 SEC ID:313384R68 12/1/2004 OCSF07522202:LONG TERM OPER-PIMCO 111112005 2:27:20PM PST Workbench 33 Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCS D-CONSOLI DATE DJUE2 DIODU7110❑❑❑ 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base MT FEDERAL HOME LN BK CONS DISC N MAT 12/8/2004 100.0000 -5,000,000.000 -4,977,541.67 4,977,541.67 0.00 12/08/2004 12/8/2004 SEC ID:313384S59 12/8/2004 OCSF07511102:LIQUID OPER-PIMCO MT FEDERAL HOME LN BK CONS DISC MAT 12/31/2004 100.0000 -200,000.000 -199,989.28 199,989.28 0.00 12/31/2004 12/31/2004 SEC ID:313384V48 OCSF07522202:LONG TERM OPER-PIMCO 12/31/2004 MT FEDERAL HOME LN MTG CORP DISC MAT 12/14/2004 100.0000 -6,100,000.000 -6,072,251.78 6,072,251.78 0.00 12/14/2004 12/14/2004 SEC ID:313396T37 12/14/2004 OCSF07511102:LIQUID OPER-PIMCO MT FEDERAL NATL MTG ASSN DISCOUNT MAT 12/1/2004 100.0000 -6,000,000.000 -5,974,216.67 5,974,216.67 0.00 12/01/2004 12/1/2004 SEC ID:313588R64 12/1/2004 OCSF07511102:LIQUID OPER-PIMCO MT WELLS FARGO BK NA INSTL C/D 1.900% 12/15/2004 100.0000 -1,100,000.000 -1,100,000.00 1,100,000.00 0.00 12/15/2004 DD 10/14/04 12/15/2004 SEC ID:9497P1JE0 12/15/2004 OCSF07511102:LIQUID OPER-PIMCO MT WELLS FARGO BANK NA INSTL C/D 1.860% 12/6/2004 100.0000 -300,000.000 -300,000.00 300,000.00 0.00 12/06/2004 DD 10/08/04 12/6/2004 SEC ID:9497PILQO 12/6/2004 OCSF07511102:LIQUID OPER-PIMCO TOTAL CASH&CASH EQUIVALENTS U.S.DOLLAR: -19,300,000.000 -19,223,967.23 19,223,967.23 0.00 TOTAL CASH&CASH EQUIVALENTS BASE: -19,300,000.000 -19,223,967.23 19,223,967.23 0.00 FIXED INCOME SECURITIES U.S. DOLLAR MT U S TREASURY BILL 0.000% 12/15/2004 DD 12/15/2004 100.0000 -2,000.000.000 -1,998,690.00 1,998,690.00 0.00 12/01/04 12/15/2004 SEC ID:912795TF8 12/15/2004 OCSF07511102:LIQUID OPER-PIMCO 1/11/2005 2:27:20PM PST Workbench 34 Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency USD OCSD-CONSOLIDATED=7JC1❑❑01100 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Traa Settle Date Price Cost Amount. Net CainXOSS Type Description Reported Date Base. Shares/Par Base Base Base TOTAL MATURITIES BASE: -21,300,000.000 -21,222,657.23 21,222,657.23 0.00 INTEREST CASH&CASH EQUIVALENTS U.S.DOLLAR IT FEDERAL HOME LN BK CONS DISC N MAT 12/1/2004 600,000.000 32.17 32.17 0.00 12/01/2004 12/1/2004 SEC ID:313384R68 12/1/2004 OCSF07522202:LONG TERM OPER-PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 12/8/2004 5,000,000.000 22,458.33 22,458.33 0.00 12/08/2004 12/8/2004 SEC ID:313384559 12/8/2004 OCSF07511102:LIQUID OPER-PIMCO IT FEDERAL HOME LN BK CONS DISC MAT 12/31/2004 200,000.000 10.72 10.72 0.00 12/31/2004 12/31/2004 SEC ID:313384V48 12/31/2004 OCSF07522202:LONG TERM OPER-PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 12/14/2004 6,100,000.000 27,748.22 27,748.22 0.00 12/14/2004 12/14/2004 SEC ID:313396T37 12/14/2004 OCSF07511102:LIQUID OPER-PIMCO IT FEDERAL NATL MTG ASSN DISCOUNT MAT 12/1/2004 6,000,000.000 25,783.33 25,783.33 0.00 12/01/2004 12/1/2004 SEC ID:313588R64 12/1/2004 OCSF07511102:LIQUID OPER-PIMCO IT WELLS FARGO BKNA INSTLC/D 1.900% 12/15/2004 1,100,000.000 3,599.44 3,399.44 0.00 12/15/2004 DD 10/14/04 12/15/2004 SEC ID:9497PIJEO 12/15/2004 OCSF07511102:LIQUID OPER-PIMCO IT WELLS FARGO BANK NA INSTL C/D 1.860% 12/6/2004 300,000.000 914.50 914.50 0.00 12/06/2004 DD 10/08/04 12/6/2004 3EC ID:9497PILQ0 12/6/2004 OCSF07511102:LIQUID OPER-PIMCO 111112005 2:27.20PM PST Workbench 35 Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD 0CSD-00NSOLI DATE D—i1E2JJ000JOD700 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base CW SHORT TERM FDS INT ADJ NET OF 12/31/2004 0.000 -6,500.16 -6,500,16 0.00 OVERNIGHT INTEREST 12/31/2004 SEC ID:990000PJ4 12/31/2004 OCSF0751 1102:LIQUID OPER-PIMCO IT DREYFUS TREASURY CASH MGMT 12/3/2004 0.000 1,775.41 1,775.41 0.00 SEC ID:996085247 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO 12/3/2004 IT DREYFUS TREASURY CASH MGMT 12/3/2004 0.000 4,506.73 4,506.73 0.00 SEC ID:996085247 12/1/2004 OCSF0751 1102:LIQUID OPER-PIMCO 12/3/2004 IT BSDT-LATE MONEY DEPOSIT ACCT 12/1/2004 0.000 0.12 0.12 0.00 SEC ID:996087094 12/1/2004 OCSF07522202:LONGTERM OPER-PIMCO 12/1/2004 TOTAL CASH&CASH EQUIVALENTS U.S. DOLLAR: 19,300,000.000 80,328.81 80,328.81 0.00 TOTAL CASH 85 CASH EQUIVALENTS BASE: 19,300,000.000 80,328.81 80,328.81 0.00 FIXED INCOME SECURITIES U.S. DOLLAR IT ASSOCIATES CORP NORTH AMER SR 6.625% 12/15/2004 3,000,000.000 99,375.00 99,375.00 0.00 06/15/2005 DD 06/09/95 12/15/2004 SEC ID:046003FF1 12/15/2004 OCSF0751 1102:LIQUID OPER-PIMCO IT CIT GROUP INC NEW SR NT VAR RT 12/22/2004 1,500,000.000 8,791.93 8,791.93 0.00 09/22/2006 DD 09/23/03 12/22/2004 SEC ID: 125581AF5 12/22/2004 OCSF07522202:LONG TERM OPER-PIMCO IT WMP/HUNTOON PAIGE#000-11150 7.500% 12/2/2004 830.670 5,862.02 5,862.02 0.00 12/01/2030DD 10/21/99 11/1/2004 SEC ID:302998GE3 12/2/2004 0CSF07522202:LONGTERM OPER-PIMCO I11112005 2:27.20PM PST Workbench 36 Transaction Detail Report ID: EWBO09 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D'=12❑❑O❑❑7❑❑7❑O 12/1/2004 - 12/31/2004 Status: FINAL. Trade Date EPe; . Settle Date Price Cost Amount Net(lain/Loss Description Reported Date Base Shares/Par Base Base Base IT WMP/HUNTOON PAIGE#000-11150 7.500% 12/30/2004 836.470 5,856.83 5,856.83 0.00 12/01/2030 DD 10/21/99 12/1/2004 SEC ID:302998GE3 OCSF07522202:LONG TERM OPER-PIMCO 12/30/2004 IT FHLMC M ULTICLASS MTG SER E3 A VAR RT 12/15/2004 17,683.950 2,609.26 2,609.26 0.00 08/15/2032 DD 12/01/97 11/1/2004 SEC ID:3133TCE95 12/15/2004 OCSF07522202:LONGTERM OPER-PIMCO IT FHLMC GROUP#78-6064 6.384%01/01/2028 12/15/2004 2,812.320 178.08 178.08 0.00 DD 12/01/97 11/1/2004 SEC ID:31348SWZ3 12/15/2004 OCSF07522202:LONGTERM OPER-PIMCO IT FEDERAL NATL MTG ASSN DEBS 5.250% 12/15/2004 11,350,000.000 297,937.50 297,937.50 0.00 06/15/2006 DD 06/22/01 12/15/2004 SEC ID:31359MJX2 12/15/2004 OCSF07522202:LONG TERM OPER-PIMCO IT FNMA POOL#0254510 5.000%11/01/2017 12/27/2004 12,531.050 2,794.33 2,794.33 0.00 DD 10/01/02 12/1/2004 SEC ID:31371KVB4 12/27/2004 OCSF07522202:LONG TERM OPER-PIMCO IT FNMA POOL#0254631 5.000%02/01/2018 12/27/2004 2,698.410 600.97 600.97 0.00 DD 01/01/03 12/1/2004 SEC ID:31371KY47 12/27/2004 OCSF07522202:LONG TERM OPER-PIMCO IT FNMA POOL#0254760 5.000%06/01/2018 12/27/2004 2,176.290 535.94 535.94 0.00 DD 05/01/03 12/1/2004 SEC ID:31371K5V9 12/27/2004 OCSF07522202:LONGTERM OPER-PIMCO IT FNMA POOL#0254866 5.000%09/01/2018 12/27/2004 1,074.650 243.12 243.12 0.00 DD 08/01/03 12/1/2004 SEC ID:31371 LC133 12/27/2004 OCSF07522202:LONG TERM OPER-PIMCO IT FNMA POOL#0254953 5.000%11/01/2018 12/27/2004 4,849.390 1,290.70 1,290.70 0.00 DD 10/01/03 12/1/2004 SEC ID:31371LE21 12/27/2004 OCSF07522202:LONGTERM OPER-PIMCO 11111200E 2:27.20PM PST Workbench 37 ' SE y�uaq�loM JSd WdOL-*LL:z SOOZ/II/I b00Z/Lz/ZT OOWId-2I8dO W 31 ON01:60EUSLUSOO b00Z/I/Zi 9M8XS8ET£:01 O39 EO/TO/b0 Go 00'0 LVEET Lb'EEI OS9'8LS bOOZ/LZ/ZT 8TOZ/IO/SO%000'S ESbSSSO#'IOOd VWNd LI bOOZ/LZ/ZI OOWld-N3dO M3J.DNO'I:ZOZZZSL0dSOO b00z/I/Z i I ASM98C1 E:OI 33S co/To/£O QQ 00'0 TL'I8Z'I IL'ISZ'I OZO'6Z6'b b0oZ/LZ/ZI 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8TOZ/10/TT%000'9 SZKSLO#100d VWN8 .LI b00Z/LZ/ZT OOWId-N3d0 W2131ON0I:ZOZZZSLOdSOO IHW1EObTE:QI 03S b00Z/I/ZI EO/IO/TT QQ 00'0 ZZ'9IZ'E ZZ'9TZ'E 09b'60Z'ST b00Z/4Z/ZT 8T0Z/10/Zi%000'S 09619LO#100d VWNd dI assg assg as8g "d/saasgs 0"a a;sa papodag uolqdFsasaa adAl ssoZ/uFs' ,rx ;unou>c� �s� aomd a;$a a aSuejL - a;BQ`apssy F600a&3 n{ui3 :ST41ns 1�OOZ/TE/m - 1000Z/I/n 11000L]CLIOOECT, G3.LV4110SN00-GSOO asa :6auaxxn0 asug Ajo2aj80 uopoi3susiy Aq papodag uoljaW f :CU uodax �1a;aa uosousue-u Transaction Detail Report M: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED=3:10❑❑3❑❑�0❑ 12/1/2004 - 12/31/2004 Status: FnvAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT GNMA POOL 40478626 6.500%01/15/2029 12/15/2004 179.450 654.36 654.36 0.00 DD 01/01/99 12/1/2004 SECID:36209QVT9 12/15/2004 OCSF07522202:LONGTERM OPER-PIMCO IT GNMA POOL#0480598 6.5009/6 10/15/2028 12/15/2004 39.010 156.07 156.07 0.00 DD 10/01/98 12/1/2004 SEC ID:36209S3F6 OCSF07522202:LONGTERM OPER-PIMCO 12/15/2004 IT GNMA POOL#0512235 6.500% 11/15/2029 12/15/2004 12.520 45.52 45.52 0.00 DD 11/01/99 12/1/2004 SEC ID:36211GBC6 12/15/2004 OCSF07522202:LONGTERM OPER-PIMCO IT GNMA POOL#0514326 6.500%07/15/2029 12/15/2004 188.600 575.95 575.95 0.00 DD 07/01/99 12/1/2004 SEC ID:36211JLF2 12/15/2004 OCSF07522202:LONGTERM OPER-PIMCO IT GNMA 11 POOL#0080023 VAR RT 12/20/2026 12/20/2004 1,655.150 636.57 636.57 0.00 DD 12/01/96 12/1/2004 SECID:36225CAZ9 12/20/2004 OCSF07522202:LONGTERM OPER-PIMCO IT GNMA II POOL#080088M 7.375%06/20/2027 12/20/2004 9,141.760 609.67 609.67 0.00 DD 06/01/97 12/1/2004 SECID:36225CC20 12/20/2004 OCSF07522202:LONGTERM OPER-PIMCO IT GNMA II POOL#0080395 VAR RT 04/20/2030 12/20/2004 5,433.490 520.01 520.01 0.00 DD 04/01/00 12/1/2004 SEC ID:36225CNM4 12/20/2004 OCSF07522202:LONG TERM OPER-PIMCO IT GNMA 11 POOL#080408X 6.500%05/20/2030 12/20/2004 55,822.310 4,721.13 4,721.13 0.00 DD 05/01/00 12/1/2004 SEC ID:36225CN28 OCSF07522202:LONG TERM OPER-PIMCO 12/20/2004 IT GNMA 11 POOL#0080965 VAR RT 07/20/2034 12/20/2004 13,618.350 4,006.35 4,006.35 0.00 DD 07/01/04 12/1/2004 SEC ID:36225DCB8 12/20/2004 OCSF07522202:LONGTERM OPER-PIMCO 111112005 2:27:20PM PST Workbench 45 9b youag3p0Al J:Sd WdOZ-LZ:Z SOOZ/T T/f b00Z/I0ZI OOWId-2I3dO WN31 JNO'I:ZOZZZSLOASOO O W38 Z8Z I 6:01 03 S booz/I£/zi bo/o£/90 00'0 00'SZT'8L£ 00'SZI'8L£ 000'000'009'LZ b00Z/I£/ZI as 9o0z/0£/90%OSL'Z S3JON ksnsv3sl S fl 11 b00Z/SI/ZI OOWId-N3dO M31`JNOl:ZOZZ ZSLOASOO 9J.88Z8Z1 6:Ql 03S b00z/9I/Zi £0/9I/Zi 00'0 00'000'L6Z 00'000'L6Z 000'000'009'LT b00Z/SI/Zi as 80OZ/SI/ZT%SL£'£ saLON A2 nsvau S n ZI booz/lOu OOWId-2I3dO W2M ONO'1:ZOZZZSL03S0O SAbLZ8Zi 6:CI O3S 66/ST/i 0 00 600Z/9I/TO 00'0 00'ObL'LL 00'0bL'LL 000'0 b00Z/I£/ZI %SL8'£ JN X3QNI NOIJ,VIAMI ANnSV3-dl Sf1 CIO b00Z/i£/zT OOWId-NSdO M31.ONO'[*-ZOZZZSLOdSOO L1L£LZ8Z16:QI DES 86/ST/I0 00 800Z/91/IO 00'0 00'OIZ'81 00'OIz'8I 000'0 bOOZ/I£/ZI %SZ9'£ JN X3QNI NOLLYIJNI AWISV3 U Sn CO b00z/i£/zi O3WId-X2dO M3,L0NCn:ZO6ZZSL0rISOO £WZLZSZ16:01 O3S L6/ST/IO 00 LOOZ/Si/IO 00'0 00*099,98 00,099,98 000'0 b00Z/I£/ZT %SL£'£ JN X3QNI NOLLYWNI ANnSVSd.L Sfl CIO b00z/SI/zT OOWId-HSdO ciino'I:zou TSLOdSOO SAJ,96LZi 6=QI 03S booz/si/ZT boho/zl 00'0 00'0I£'I 00'01£'I 000'000'000'z booz/Si/zi Q(i booz/SI/ZT %000'0 mia)Lzin ai S n LI b00Z/LZ/ZT OOWId-N3dO Mal ONO'I:ZOZZZSLOgSOO £8XS;8609L:Q) 03S booz/SZ/zT £0/o£/ZI QQ££OZ/Sz/ZT 00'0 Z8'LLb'T Z8'LLb'1 OZO'60£'£b b00Z/LZ/ZT IS NVA HIIV I ISZI-£0 J,3SSV'IVIJN3QISaN J1 booz/9I/ZT OOWId-NRdOM31ONCn:ZOZZZSLO.JSOO b00Z/9I/ZI 6XNbHL£8£:01O3S 0£Oz/9T/Zo 00'0 SS'ST T'I SS'ST T'I 09S'8SS'9I booz/91/ZT LU NVA Hd 6-000Z 31,DIME(310 VWNO J I booz/ST/ZT OOWld-83dOQlflal'I:ZOTIiSLOASOO b00Z/Si/ZT LXXOZ969£:CI03S z0/Oz/£0 as SOOz/ST/£0 00'0 6b'OL9'ZI 6b'OL9'ZI 000'Oo0'OOS'Z b00Z/SI/ZT LdZIVA 9ZS00ZIJM NUWdV003-13-IV-d3N3O ZI asgg asBg,., asgg 8d/sa�Ia4S "Na a;lpa PaPodag uo dFsasaQ ad4i, ssorl/uTsJ rx ;isnora� ': ;$off as a;BQ aT#aS J, uta� aplul F600EIM3 °'Kl3 ` njinS 'b00Z/TE/ZT - tpOCZ/T/ZT ❑❑CC❑C❑❑❑CCZ.T1ECI3lVCIl'IOSNOO-CSOO asn :Sauauno aseg Ajo2a;80 not ovsuim L Aq papodag (�Q"�w ' :aI uoda?I wnaa uoi;a8suTej L Transaction Detail Report ID: EWB009� / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED=0 70 00 700_JOD 12/1/2004 - 12/31/2004 Status: FINAL Trade Date Tran Settle Date Price ':.: -Cost Amount Net Grata/Loss Type Description Reported Date Base Shares/Par Base Base Base` TOTAL FIXED INCOME SECURITIES U.S.DOLLAR. 66,151,496.450 1,421,639.36 1,421,639.36 0.00 TOTAL FIRED INCOME SECURITIES BASE: 66,151,496.450 1,421,639.36 1,421,639.36 0.00 TOTAL INTEREST BASE: 85,451,496.450 1,501,968.17 1,501,968.17 0.00 TOTAL TRANSACTIONS: 152,740,091.490 87,440,663.20 -47,009,985.88 116,388.94 111112005 2:27:20PM PST Workbench 47 GWRS Steering Committee December 13, 2004 MINUTES GROUNDWATER REPLENISHMENT SYSTEM STEERING COMMITTEE STEERING COMMITTEE (A Committee of Orange County Water District and Orange County Sanitation District Directors) OCWD Boardroom, 10500 Ellis Avenue, Fountain Valley Monday, December 13, 2004, 5:30 p.m. Committee Members Philip L. Anthony OCWD Director, Chair .................... Present Paul Cook OCWD Director ........................Not Present Steve Anderson OCSD Director .............................. Present Mike Duvall OCSD Director .............................. Present Carolyn Cavecche OCSD Director ............................... Present Alternates Kathryn Barr OCWD Director (No. 1) ................... Present Brett Franklin OCWD Director (No. 2) ........... Not Present Richard Chavez OCWD Director (No. 3 ........... Not Present Jim Ferryman OCSD Director(No. 1) .................... Present Don Bankhead OCSD Director (No. 2) .................... Present John Collins OCSD Director (No. 3) .................... Present Other Directors Present Denis Bilodeau OCWD Jan Debay OCWD Roger Yoh OCWD CONSENT CALENDAR(ITEM NO.1) MOTIONNOTE ACTION TAKEN 1. MINUTES OF PREVIOUS MEETING ANTHONY-AYE RECOMMENDATION:APPROVE MINUTES OF THE NOVEMBER 8, 2004 ANDERSON-AYE APPROVED GROUNDWATER REPLENISHMENT SYSTEM STEERING COMMITTEE MEETING DUVALL -MOTION,AYE AS MAILED. BARR—SECOND,AVE FERRYMAN—AYE END OF CONSENT MATTERS FOR CONSIDERATION 2. AWARD OF CHANGE ORDER TO ENVIRONMENTAL ANTHONY-AYE SCIENCE ASSOCIATES FOR MONITORING SERVICES FOR ANDERSON-AYE APPROVED ARCHAEOLOGICAL, PALEONTOLOGICAL, AND CULTURAL DUVALL -MOTION,AYE RESOURCES MONITORING BARR—SECOND,AYE RECOMMENDATION: Agendize for December 15 OCWD Board FERRYMAN-AYE Meeting: Authorize issuance of a change order of$98,554 to the Professional Service Agreement to Environmental Science Associates consultants for a total amount not to exceed $148,554 to provide archaeological, paleontological, and Native American monitoring services for the Groundwater Replenishment System Pipelines and Barrier projects. - 1 - GWRS Steering Committee December 13, 2004 INFORMATIONAL ITEMS 3. OCSD QUARTERLY CAPITAL PROJECT UPDATE INFORMATIONAL 4. ADVANCED WATER PURIFICATION FACILITY COST INFORMATIONAL SAVINGS UPDATE 5. PROJECT SCHEDULE AND BUDGET UPDATE INFORMATIONAL 6. CONSTRUCTION PROJECTS PROGRESS INFORMATIONAL • Project Progress Photos 7. MONTHLY CHANGE ORDER UPDATE INFORMATIONAL 8. STATUS REPORT INFORMATIONAL • Grants and Loans Update • Public Information and Education Update DIRECTORS'ANNOUNCEMENTSIREPORTS GENERAL MANAGERS'ANNOUNCEMENTS/REPORTS ADJOURNMENT 6:40 P.M. - 2 - INFORMATIONAL BRIEFING FOR NEW DIRECTORS Agenda Item No. 15 OCSD BOARD OF DIRECTORS : STEWARDS OF THE PUBLIC INTEREST Presented by : Thomas L . Woodruff, General Counsel, OCSD Discussion of Five Key Topics ■ District' s Resolution re Rules of Procedure ■ Use of Confidential Information (Government Code Section 54963(a) and (b) ■ Incompatibility of Offices ■ Possible Financial Conflict of Interest (Government Code Sections 1091 and 1091 .5) ■ Financial Conflict of Interest — Political Reform Act (Government Code Section 87105) ■ Campaign Contributions — Disclosure (Government Code Section. 84308) Rules of Procedure for Conduct of Business (Resolution No. OCSD 01 -23) ■ Conduct of meetings. Topics include: • Robert' s Rules of Order Not Applicable ■ Legal Officer ■ Obtaining the Floor ■ Rules for Discussion, Debate and Deliberation ■ Decorum on Debate ■ Closing or Limiting Debate ■ Procedural Rules for Debate and Action (Refer to Table 1 of Resolution No. OCSD 0 1 -23) Use of Confidential Information (Government Code Section 54963(a) and (b) — Ralph M. Brown Act ■ Statute prohibits a Director from disclosing confidential information that has been acquired IN by being present in closed session, unless Board of Directors authorizes disclosure ■ Newly-enacted — Effective O 1 /0 1 ■ Enforcement - Remedies Incompatibility of Offices — Dual Representation by Elected or Appointed Officials ■ Common Law Rule: A public official or officer who is appointed or elected to another political office automatically vacates the first office if the two offices are incompatible ■ Incompatibility arises if nature of duties of each office potentially places official in conflict ■ Does not apply where State Legislature has provided for dual representation, whether elected or appointed ■ Example: County Sanitation District Act (California Health & Safety Code Section 4730.65) Financial Conflict of Interest ■ In general, Section 1090 prohibits a public official from having a financial interest in any contract entered into by the Board of which he/she is a member (E.g. , purchase and sale of real property in which the Director has an ownership or financial interest) ■ Government Code Section 1091 .5 species interests which Legislature has determined to be exceptions to the prohibition. If one exception applies, Director may participate in OCSD ' s consideration of the matter and vote on it ■ Specifically, Section 1091 .5(a)(9): OCSD Director not employed by a Department of OCSD that would be directly involved in a contract to purchase a real property from City "X" (the fact that OCSD Directors are not responsible for all OCSD Departments, does not make that Director an employee of that specific Department which is directly involved in the contract) ■ Director must disclose the holding of two offices to OCSD Board at the time of consideration of the matter and disclosure must be reflected in the Minutes of the meeting Financial Conflict of Interest — Political Reform Act (Government Code Section 87105) ■ Director with a financial interest shall do the following: ■ Publicly identify the financial interest ■ Recuse self from discussion or voting ■ Leave the room Campaign Contributions — Disclosure (Government Code Section 84308 — "Levine Act") ■ Involves action relating to licenses, permits or other entitlements for use, including all contracts, except those that are competitively bid, or employment/labor contracts with OCSD employees ■ Does not apply to local agencies whose Members are directly elected (no application to your position as a City Council Member, Sanitary/Water District Director, or County Supervisor) ■ Does apply to a person who is a member of an exempted agency (i.e. , a City), but who is acting as a voting member of another agency (i .e. , OCSD) ■ No officer of OCSD shall accept, solicit, or direct a [campaign] contribution of $250 or more from any party while a proceeding is pending before OCSD, and for 3 months following the date of the final decision ■ Prior to rendering any decision in a proceeding, each OCSD Director who has received a [campaign] contribution of $250 or more from any party within the preceding 12 months, shall : ■ Disclose on the record at the proceeding ■ Shall not snake nor participate in making or use his/her official position to influence the decision ■ For reference, review OCSD ' s Register of Warrants as to all current contractors/vendors with OCSD ■ Review each Agenda carefully for contracts to be awarded t HEALTH AND SAFETY CODE DIVISION 5 i Sanitation PART 3 Community Facilities CHAPTER 3 County Sanitation Districts ARTICLE 3 Officers 4730.6§. VConsolidated sanitation district in Orange County;.Composition o�vernin body: Quorum - (a) Notwithstanding Sections 4730, 4730.1 and 4730.2, or any other provision of law, a sanitation district in Orange County, that has been created by the consolidation, pursuant to the Cortese-Knox-Hertzberg Local Government Reor- ganization Act of 2000 (Division 3-(commencing with Section 56000) * * * of Title * * * S of the Government Code), of one or more sanitation districts, originally established pursuant to Section. 4730, and one or more sanitation districts, originally established pursuant to Section 4730.1, shall be referred to, for purposes of this section only, as a consolidated sanitation district and the governing body shall be constituted in accordance with subdivision lb). (b) The governing body of the consolidated sanitation`district shall be a board of directors composed of all of the following: (1)One member of the city council of each city located wholly or partially within the district's boundaries provided, however, a city within the consolidated district, the sewered portion of which city lies entirely within another sanitary district, shall have no representation on the board. (2) One member of the county board of supervisors. (3) One member of the governing body of each sanitary district, the whole or part of which is included in the consolidated sanitation district. (4) One member of the governing body of a public agency empowered to and engaged in the collection, transportation, treatment, or disposal of sewage and which, was a. member agency of .a sanitation district consolidated into a consolidated sanitation district. (c)The governing body of the county and each city, sanitary district, and public agency that is a member agency having a representative on the board of direc- tors of the consolidated sanitation district, may designate one of its members to act in the place of its regular member in his or her absence or his or her.inability to act. (d) No action shall be taken at any meeting of the consolidated district's board of directors uTss i majority of all authorized members of the board of direc- tors is in attendance. (e) A majority of the members of the board of directors present shall be required _ to approve or otherwise act on any matter except as otherwise required by law. Amended Slats 2003 ch 296 §21 (SB 66). v' RESOLUTION NO. OCSD 01-23 ESTABLISHING RULES OF PROCEDURE FOR THE CONDUCT OF BUSINESS OF THE DISTRICT A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT FIXING AND ESTABLISHING RULES OF PROCEDURE FOR THE CONDUCT OF BUSINESS OF THE DISTRICT AND REPEALING RESOLUTION NO. OCSD 98-2 WHEREAS it is necessary to establish rules of procedure to facilitate the orderly handling of business to come before the Orange County Sanitation District Board of Directors and Standing, Steering, Special and Ad Hoc Committees. NOW THEREFORE, the Board of Directors of the Orange County Sanitation District ("District"), DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Rules of Procedure. That the following rules of procedure be adopted for the conduct of business of the District: A. Regular Meetings. There shall be a regular monthly meeting of the Board of Directors of the District on the fourth Wednesday of every month at 7:00 p.m., in the Administrative Offices of the District, located at 10844 Ellis Avenue, Fountain Valley, California; provided, however, if the fourth Wednesday of the month falls upon a legal holiday, said monthly meeting shall be held on the next day thereafter, at the same time and place, unless the Board adjourns to a different date and time certain. The Board of Directors may adjourn any regular, special or adjourned special meeting to a time and place certain, as specified in the order of adjournment. B. Special Meetings. A special meeting of the Board of Directors may be called in either one of the following ways: (1) By the Chairperson of the Board of Directors; or (2) By the written request of a majority of the Steering Committee delivered to the Board Secretary. WSBS-TLW:pj:D-2:11/27/01:#143852 1 ' o The call or notice for special meeting shall be in writing and delivered personally or by mail at least twenty-four (24) hours before the time of such meeting, as specified in the notice. Any notice deposited in the regular mail addressed to a Director at the address he or she has on file with the Board Secretary postage prepaid, sixty (60) hours in advance of any such meeting as specified in the notice, shall be presumed to have been delivered. The call or notice shall specify the time and place of the special meeting, a description of the business to be transacted, and copies of all pertinent written materials. Such written notice may be dispensed with as to any Director or Alternate Director who, at or prior to the time the meeting convenes, files with the Board Secretary a written waiver of notice. Such waiver may be given by telegram. Such written notice may also be dispensed with as to any member who is actually present at the meeting at the time it convenes. The Board Secretary shall diligently attempt to notify each Director personally of the time, place and purpose of said meeting, not less than twenty-four(24) hours before the time of said meeting. The call or notice shall be posted in the administrative offices' public lobby at least twenty-four (24) hours prior to the special meeting. C. Meetings Adiourned by Board Secretary. If at any regular, adjourned regular, special, or adjourned special meeting, there is not a quorum of Directors present, the Board Secretary may declare the meeting adjourned to a stated time and place and shall cause written notice of the adjournment to be given in the same manner as for a special meeting, unless such notice is waived as provided for in special meetings. Within twenty-four (24) hours after the time of the adjournment, a copy of the order or notice of adjournment shall be conspicuously posted on or near the door of the place where the meeting was held. D: Notices to News Media. When any local newspaper of general circulation, radio or television station requests, in writing, notices of meetings of the Board of Directors, the Board Secretary shall thereafter, until receipt of a notice terminating said request, deliver notices of regular, regular adjourned, and special adjourned meetings to such newspapers, radio or television stations. Delivery shall be made in the same manner as delivery is made to the Directors. E. Conduct of Meetings. (1) Procedural Rules. The procedural rules for debate and action shall be as set forth in Table 1, attached hereto and adopted herein by reference. Robert's Rules of Order shall not be applicable or govern the procedures for the conduct of District business. WS&S-TLW:pj:D-2:11/27/01:#143852 2 1 P (2) Legal Officer. In any case of ambiguity or uncertainty in the interpretation or application of these Rules to any procedure, the presiding officer may direct such question for a ruling to the Board's General Counsel, who shall be the parliamentarian of the Board. (3) Obtaining the Floor and Making Motions. Any member of the Board wishing to speak, or any member of the public wishing to address the Board, must first be recognized by the Chairperson. The Chairperson must recognize any member of the Board who seeks the floor when appropriately entitled to address the Board. Any member of the Board, including the Chairperson, may bring a matter of business properly before the Board by making a motion. Any member, including the Chairperson, except the member making the motion, may second the motion. Once a motion is seconded, it may be opened for discussion and debate, in accordance with the procedures in Subsection (4) below. (4) Rules for Discussion, Debate, and Deliberation by the Board. The procedures for consideration and action on all matters to come before the Board shall be in compliance with the terms of this Section, as follows: (a) Each item on the Agenda will be introduced in a form of a report by either Staff or Counsel. (b) Upon completion of the report, the Chairperson will allow for direct questions regarding the item, by Directors, each in turn, and in the order as selected by the Chairperson. (c) Upon completion of the question period, the Chairperson will entertain a motion and second for consideration by the Board. (d) Discussion among the Directors will follow. Each Director will be recognized to address the Board in the order selected by the Chairperson, with a five (5) minute time limit for each Member wishing to speak on the Agenda item. There will be no interruptions of the Director who has been recognized. Attempted interruptions will be declared out-of-order, and the Board Member attempting to interrupt will be asked to remain silent until recognized. (e) As an additional courtesy to everyone, repetition of comments will be discouraged in the interest of time, and at the discretion of the Chairperson, can be declared out-of-order. (f) After each Member who wishes to speak has been recognized and completed his/her remarks, a single three (3) minute period of rebuttal will be allowed any Director, unless the time limit is waived by the Chairperson. WSBS-TLW:pj:D-2:11/27/01:#143852 3 i Q (g) If it appears to the Chairperson that any Director is pursuing a line of questioning or commentary due to lack of preparation or prior review with the District's Staff, the Director's time will be declared to have been used up, and no further inquiry will be allowed. (h) Upon adoption of a motion on an Agenda item, there will be no further discussion of that item. (5) Decorum in Debate. All Members shall address their remarks to the Chairperson and confine them to the business then pending and subject to discussion before the Board, avoiding personalities and reflections upon anyone's motives. (6) Closing or Limiting Debate. At all times the Board shall endeavor to allow free and open debate among Members of the Board. However, in the discretion of the Chairperson, it may become necessary to close or limit debate, so that action can be taken by the Board. An order by the Chairperson closing or limiting the debate can only be set aside by a majority vote of the Board. F. Quorum. A majority of the Directors shall constitute a quorum of the Board. G. Chairperson and Vice Chairperson of the Board. A Chairperson and Vice Chairperson of the Board shall be elected by a majority vote of Directors at the regular meeting in June of each year, and will assume office July 1st. The nominations for Chairperson shall be made at the regular Board meeting in May of each year, and the nominees may prepare a statement setting forth their qualifications for the office of Chairperson. The statements shall be mailed to members of the Board of Directors with the Agenda and other meeting material for the June regular meeting. The nominations and election for Vice Chairperson shall be made at the regular Board meeting in June of each year and shall be made immediately following the election of the Chairperson. The elected Vice Chairperson will assume office July 1 St. The Chairperson and Vice Chairperson shall serve at the pleasure of a majority of the Directors. In the event the office of Chairperson becomes vacant due to resignation or retirement of the incumbent prior to the expiration of the regular term, the Vice Chairperson shall automatically succeed to the office of the Chairperson and shall continue to serve through the remainder of the regular term unless sooner removed by action of a majority of the Directors. In the event the office of Vice Chairperson becomes vacant prior to the expiration of the regular term, nominations and the election of a Director to serve in that capacity shall be conducted at the next regular Board meeting. The person so elected shall serve the balance of the regularly-scheduled term unless sooner removed as a result of action by a majority of the Directors. WSBS-TLW:pj:D-2:11/27/01:#143852 4 Y Subject to the provisions about serving at the pleasure of a majority of the Directors, the Chairperson shall not serve more than two consecutive one-year terms for which he/she has been elected to the office of Chairperson. H. Presiding Officer. The Chairperson of the Board shall preside during meetings of the Directors. In the absence of the Chairperson, the Vice Chairperson shall preside. I. Board Secretary and Minutes. The Board of Directors shall have a person designated to serve as Board Secretary. The Board Secretary will be appointed to the position by the General Manager and shall report to the General Manager or a Department Head as designated by the General Manager. The Board Secretary will be a regular full time employee, subject to all the rules and policies applicable to all regular full time employees. The Board Secretary shall attend all meetings of the Board of Directors, unless excused by the Chairperson, and shall prepare an accurate record of each meeting for submission to the Directors and subsequent approval at the following meeting; provided, however, that when an adjourned, special or special adjourned meeting of the Board of Directors immediately precedes a regular meeting, Minutes of said meeting shall be submitted for approval at the next meeting of the Board following said regular meeting. In the preparation of Official Minutes of a meeting of the Board of Directors, the Board Secretary will not record the name of the Director who moves or who seconds the adoption of a motion or Resolution, except the vote of any individual Director shall be recorded upon that Director's request. The Minutes will reflect the votes by name of Director when required by provisions of state law. In the absence of the Board Secretary, a Secretary Pro Tern shall be appointed to exercise the duties of the Board Secretary. J. Regular Business to Come Before the Board of Directors. Insofar as practicable, all items of business to be taken up at a regular meeting of the Board shall be submitted to the Board Secretary, who shall include on the Agenda all such items submitted by Directors, the General Manager and General Counsel, and all formal communications. The Board Secretary shall mail to each Director a notice of such regular meetings, together with a proposed Agenda, not later than the Friday immediately preceding such regular meetings. Said Agenda, insofar as possible, shall include copies of Resolutions, except as hereafter provided, and a description of all matters to be considered, together with any pertinent written materials. Agendas shall be posted in a location freely accessible to the public not less than seventy-two (72) hours in advance of the meeting. WSBS-TLW:pj:D-2:11/27/01:#143852 5 Resolutions designated as "standard" and adopted by the Board of Directors from time to time, and approved as to form and content, need not be included with said Agenda; provided, however, that the information completing said standard Resolutions shall be set forth on the Agenda listing, and copies of said standard Resolutions shall be on file with the Board Secretary at the meeting time and place. Items of business not known at the time the regular Agenda is mailed as herein provided, may be considered as supplemental Agenda items; provided that all requirements of the Ralph M. Brown Act (California Government Code Sections 54950 et seg.) are satisfied. No business, except with consent of two-thirds of the Directors present (a majority of Directors present for emergency actions), and only if permitted by the Ralph M. Brown Act, not appearing on the regular or supplemental Agendas may be brought before the Board of Directors. The meeting Agenda shall provide for an opportunity for members of the public to address the Board on items on the Agenda and non-Agenda items of public interest. As determined by the Chairperson, speakers may be deferred until the specific Agenda item is taken for discussion, and remarks may be limited to three (3) minutes. Speakers on non-Agenda items may address only items that are within the subject matter jurisdiction of the Board of Directors. Time allotted for such presentations is limited to three (3) minutes or less, in the discretion of the Chairperson. Total time allotted for all public input on each non-Agenda item is limited to thirty (30) minutes to one (1) hour, in the discretion of the Chairperson, taking into consideration the number of persons filing a request to address the Board. K. Handling of Business and Voting. During the course of a Board meeting, routine matters listed on the Agenda for consideration will be referred to by Agenda Item Number only. Voting on all Resolutions shall be by roll call, except if waived by unanimous voice vote, in which event, the Chairperson may order a unanimous ballot cast in favor of the motion or Resolution under discussion. The name of each Director shall be called only once. On matters of considerable interest or on which there appears to be a controversy, the motion or Resolution shall be read by title or repeated by the Chairperson. The Chairperson shall thereafter call for discussion of the motion or Resolution, at which time any member may discuss the pending matter. Any person other than a Director present at the meeting may speak on the motion if recognized by the Chairperson. Sole discretion as to the extent of discussion outside of the membership of the Board shall rest with the Chairperson. At the close of discussion, WSBS-TLW:pj:D-2:11/27/01:#143852 6 I the Chairperson may, at the Chairperson's discretion, repeat the motion or Resolution pending, and thereafter, call for a vote. The Board Secretary shall determine and state whether or not a motion or Resolution is adopted by roll call vote. On all other matters, the Chairperson shall determine the outcome of the voting. L. Committees. (1) Standing Committees. (a) Steering Committee: There shall be a permanent Committee designated as the Steering Committee, comprised of the Chairperson of the Board, the Vice Chairperson of the Board, the immediate past Chairperson of the Board, the Chairperson of each of the Standing Committees and the Director from the County Board of Supervisors to assist in coordinating the flow of activities to the Committees and Board. The Committee shall also conduct an annual performance evaluation of the General Manager and submit recommendations on his/her compensation to the Board of Directors. The Committee shall also review the General Manager's evaluation and compensation of the executive management employees, based on established criteria, and executive management's goals and objectives for the following year. The Committee shall also be authorized to assign new subjects of significant importance to the District, to the respective Standing Committee for study, evaluation and recommendation. The Steering Committee shall meet on the fourth Wednesday of each month at 5:00 p.m. preceding the Board's meeting, or at the call of the Chairperson of the Board of Directors. (b) Finance, Administrative and Human Resources Committee. There shall be a permanent Finance, Administrative and Human Resources Committee to advise the Staff and make recommendations on matters related to the financial, budgeting, administrative and personnel policies and programs of the District. The Committee shall review with the Staff the procedures for development, preparation and format of the annual budget and recommend appropriate change, and counsel the Staff during the budget process to assure the proper interpretation and implementation of the Board's policies and that the desired procedures have been followed. WS&S-TLW:pj:D-2:11/27/01:#143852 7 i 4 The responsibility for consideration and adoption of the District budget rests with the Board of Directors. The Committee is responsible to periodically interview and recommend the selection of outside auditors. The Committee shall review the result of the annual audit of the District's accounts with representatives of the outside audit firm, including any comments received recommending improvements. The Committee shall review management's response to these comments and make appropriate recommendations for implementation. Periodically, the Committee shall recommend employment of an outside firm to audit internal' control procedures to safeguard the assets of the District. The Committee shall interview and make recommendations on the employment of investment-banking firms, bond counsel, and if necessary or desired, financial advisors to be used in connection with the Districts financing programs. The Committee shall periodically coordinate recommendations on personnel audits of the District's operations or segments of the operations on an as-needed basis. The Committee shall make recommendations on personnel policies and procedures, labor negotiations, insurers and coverage, procurement procedures, and such other related activities as may be needed or appropriate. The Chairperson and Vice Chairperson of the Finance, Administrative and Human Resources Committee shall be appointed by the Chairperson of the Board of Directors. The Finance, Administrative and Human Resources Committee shall meet on the second Wednesday of each month at 5:00 p.m., or at the call of its Chairperson. (c) Operations, Maintenance and Technical Services Committee. There shall be a permanent Committee designated the Operations, Maintenance and Technical Services Committee. With the goal of compliance with all public health and environmental laws and regulations, the Operations, Maintenance and Technical Services Committee shall review and submit appropriate recommendations on the matters pertaining to the operation of the District Treatment Works, including such matters as current and projected service/flow needs, level and quality of treatment, conservation, recycling and reuse activities, and air quality issues. WS&S-TLW:pj:0-2:11/27/01:#143852 8 ! t y P The Committee shall also review issues pertaining to the District's NPDES Ocean Outfall Discharge Permit, including annual review of the contractor(s) performing the ocean monitoring and research programs required as a condition of said permit, and related issues regarding protection of the marine waters off metropolitan Orange County's coastline from impacts resulting from the District's operations and discharge of treated wastewater. The Committee shall also review matters pertaining to contractual arrangements by the District to provide sewerage services to areas outside the District's boundaries or approved spheres of influence. The Committee shall review plans for the future needs of the District, explore alternatives and make recommendations on solutions to the Planning, Design and Construction Committee. In carrying out its responsibilities, the Committee shall regularly study, visit and observe the various operational functions of the District Treatment Works. The Chairperson and Vice Chairperson of the Operations, Maintenance and Technical Services Committee shall be appointed by the Chairperson of the Board of Directors. Because of the special interest of the coastal communities in ocean issues, one representative of each member agency within the District's boundaries with coastal shoreline shall be a member of the Committee. The Operations, Maintenance and Technical Services Committee shall meet on the first Wednesday of each month at 5:00 p.m., or at the call of its Chairperson. (d) Planning, Design and Construction Committee. There shall be a permanent Committee designated the Planning, Design and Construction Committee. The Planning, Design and Construction Committee shall review and submit appropriate recommendations on matters pertaining to capital projects which address operational needs identified by the Operations, Maintenance and Technical Services Committee, including the selection of professional consulting services to assist in studying, planning and designing needed District Treatment Works and support facilities, including computerized systems, in accordance with the Board's established policies and procedures for procuring such services; the Committee shall further review construction projects for said facilities in accordance with applicable public works laws and Board policies. Said oversight shall include the contracts for professional services and public works construction projects and addenda or change orders thereto. In carrying out its responsibilities, the Committee shall receive advance notice and regular status reports on the projects from Staff, and monitor, visit and observe the District Treatment Works' operational functions and major capital construction projects. WS&S-TLW:pj:D-2:11/27/01:i#143852 9 I t The Chairperson and Vice Chairperson of the Planning, Design and Construction Committee shall be appointed by the Chairperson of the Board of Directors. The Planning, Design and Construction Committee shall meet on the first Thursday of each month at 5.00 p.m., or at the call of its Chairperson. (2) Special and Ad Hoc Committees. In addition to the Standing Committees, the Chairperson of the Board of Directors, or the Chairperson of a Standing Committee, or a majority of the Directors, may appoint, from time to time, Special or Ad Hoc Committees to study and report on specific matters. Such Committees shall be temporary in nature, and their assignments shall pertain to a current, specific issue. Upon completion of the assigned task, the Ad Hoc or Special Committee will be dissolved. The Chairperson and Vice Chairperson of Special and Ad Hoc Committees shall be appointed by the Chairperson of the appointing authority. Special or Ad Hoc Committees shall meet at the call of its Chairperson. M. Motion to Refer to a Standing Committee. Any Director at a Board meeting may move to have a policy or any other activity affecting the District, or any one of the member Agencies, referred to a Standing Committee for study and report. This motion shall be a privileged motion, and when duly seconded, discussion thereof shall be limited to Directors only. Said motion shall receive an affirmative vote of a majority of the Directors for adoption. Section 2: Procedure for Consideration of Demands for Corrective Action. A. Requirement of Written Demand. Prior to any person commencing a judicial action for injunction or mandamus to declare any action taken by the Board void because of failure to observe Brown Act requirements, such person must first serve upon the Board Secretary a written demand describing the alleged violation and demanding corrective action. Such demand must be served upon the Board Secretary within thirty (30) days of the complained of action. Failure to serve any such demand within this thirty (30) day period shall result in the loss of any right to challenge any action to have been taken in violation of Sections 54953, 54954.2, or 54956 of the California Government Code. B. Consideration of Corrective Action. Upon receipt of such a demand, consideration of the demand shall immediately be placed on the Agenda for the next meeting of the Board of Directors. If the demand is received less than seventy- two (72) hours prior to the time set for the next meeting, the Board may determine that the notice constitutes the initiation of litigation, and that the need to take action on the WS&S-TLW:pj:D-2:11l27l01:#143852 10 t threatened litigation arose subsequent to the posting of the Agenda, and may consider it at that meeting pursuant to Section 1(J) above. A description of any item so placed on the Agenda shall include both consideration of the demand, and the possibility of corrective action by the Board. In considering such demands, the Board shall first determine, by motion, whether corrective action should be taken. If no motion to take corrective action is carried, the Board Secretary shall inform the demanding party in writing of the Board's decision not to cure or correct the challenged action. C. Implementing Corrective Action. If a motion to take corrective action passes, the Chairperson may entertain a motion implementing corrective action. Any motion implementing corrective action shall address the concerns raised in the consideration of corrective action. The motion implementing corrective action may include a motion to rescind prior action taken, as appropriate. Passage of a motion to rescind invalidates prior action only as of the time of the passage of the motion, and not from the date of the initial action. A motion implementing corrective action resulting from a written demand is out-of-order if the action complained of (a) was in connection with the sale or issuance of notes, bonds, or other evidences of indebtedness, or any contract, agreement, or incident thereto; or (b) gave rise to a contractual obligation upon which a party has, in good faith, detrimentally relied. In any event, the Board shall notify the party making the demand in writing of its decision to take corrective action, and shall describe any corrective action taken. This notice shall be given to the demanding party as soon as possible after the meeting, but in no event more than thirty (30) days after receipt of the demand. Section 3: Resolution No. OCSD 98-2 is hereby repealed. Section 4: This Resolution shall become effective upon adoption. PASSED AND ADOPTED at a regular meeting held November 28, 2001. Chair ATTEST: Board Secretary WS&S-TLW:pj:D-2:11/27/01:#143852 11 � 1 TABLE 1 BOARD PROCEDURES AND ORGANIZATION SUMMARY OF MOTIONS A. PRIVILEGED MOTIONS Kind of Second Motion Required Debatable Amendable ' Vote Required Purpose Adjourn Yes No No Majority To end the meeting To Take a Yes No No Majority To interrupt a Recess meeting for a short time or to provide an intermission Raise a No No No None To obtain action Question of immediately in an Privilege I emergency B. MAIN MOTION AND RELATED SUBSIDIARY MOTIONS Kind of Second Vote Required Motion Required Debatable Amendable Purpose Main Motion Yes Yes Yes Majority To introduce new business Amend Main Yes Yes Yes Majority To modify or alter Motion a motion Substitute Yes Yes Yes Majority To replace the main Motion motion entirely Previous Yes No No Majority To close debate Question on the main or amended motion immediately Continue to a Yes Yes Yes Majority To defer action Certain Time To Table Yes No No Majority To discontinue consideration until brought back by vote of the Board Take a Motion Yes No No Majority To bring before the from the Table group a motion previously tabled WS&S-TLW:pj:D-2:11/27/01:#143852 12 Limit or Yes No Yes Majority To limit or extend Extend Limits limits of debate of Debate Refer to a Yes Yes Yes Majority To place business Committee in hands of a Committee Withdraw a No No No None To withdraw a Motion motion before it is voted on Reconsider Yes Yes No Majority. To secure a new Must be by a vote on a motion Director who previously voted voted for the upon prevailing side on the original motion C. INCIDENTAL RULES NON-RANKING Kind of Second Vote Required Motion Required Debatable Amendable Purpose Request to Yes No No Two-Thirds To facilitate Suspend the business Rules ordinarily contrary to the rules of the organization Override Yes No No Majority To have Order of the Board Chair majority rule on the order Point of Order No No No None To enforce the rules of the organization WSBS-TLW:pj:D-2:11/27/01:#143852 13 Assembly Bill No. 1945 CHAPTER 1119 An act to add Section 54963 to the Government Code relating to open m e mgs. [Approved by Governor September 30,2002.Filed with Secretary of State September 30,2002.] LEGISLATIVE COUNSEL'S DIGEST AB 1945, Simitian. Open meetings: closed sessions: confidential information. The Ralph M. Brown Act generally requires that the meetings of the legislative body of a local agency be conducted openly and publicly,but also provides that the legislative body of a local agency may hold closed sessions for specified purposes. The act provides that a member of a legislative body who attends a meeting of that body where action is taken in violation of the act, and where the member intends to deprive the public of information to which the member knows or has reason to know the public is entitled under the act,is guilty of a misdemeanor. This bill would provide that a person ma_y not disclose confidential information as define that has been acquired by being present in a closed session authorized under the act, as specified, unless the legislative body authorizes disclosure of that confidential information. The bill would provide that a violation of these provisions may be addressed by the use of remedies that are currently available by Iaw, including, but not limited to, injunctive relief to prevent the disclosure of confidential information under these provisions,disciplinary action against an employee who has willfully disclosed confidential information,and the referral of a member of a legislative body who has willfully disclosed confidential information to the grand jury for investigation and possible accusation under specified procedures. The bill would provide that a local agency may not take any of these actions against a person for making a confidential inquiry or complaint to a district attorney or grand jury concerning a perceived violation of law, expressing an opinion concerning the propriety or legality of actions taken by a legislative body in closed session, including disclosing specified facts to a district attorney or grand jury to establish the illegality of action taken or potential illegality of action deliberated upon that would be illegal if the action is taken, or disclosing information acquired by being present in a closed session that is not confidential information. 93 MEMORANDUM Thomas L.Woodruff, General Counsel Orange County Sanitation District INCOMPATIBILITY OF OFFICES DOCTRINE Under the common law, a public official or officer who is appointed or elected to another political office automatically vacates the first office if the two offices are incompatible. People ex rel Capman v. Rapsev(1940) 16 Cal.2d 636, 644. See, also, 80 Cal. Ops. Atty. Gen. 75 (1997), and 73 Cal. Ops. Atty. Gen. 354 (1990). Incompatibility arises if the nature of the duties of each office potentially places them in conflict. People v. County of Santa Clara (1997)49 Cal.App.41h 1471. For example, incompatibility may arise in the following situations: • Under any significant clash of duties between two offices; or • If the dual office holdings would be improper for reasons of public policy; or • If either office exercises a supervisory, auditory, or removal power over the other. Rapsev, sul2ra, 16 Cal.2d at 640-644; 70 Cal. Ops. Atty. Gen. 157, 161 (1987); 38 Cal. Ops. Atty. Gen. 113 (1961). However, the Doctrine does not apply where the State Legislature has provided for dual representation. For example, in reviewing whether the Doctrine applies to a public official serving as Fire Protection District Director and LAFCO Commissioner, the California Attorney General explained: "Ordinarily, a LAFCO has seven commissioners—two county supervisors representing the county, two city mayors or city council members representing the cities of the county, two officers of special districts representing the districts of the county, and one member of the general public. ([Govt.j § 56325) Here, the fire protection district director would be a LAFCO commissioner due to being selected to represent the special districts of the county. ([Govt.j §§ 56325, subd. (c), 56332, subd. (d)) We need not examine the possible conflicts that would make these two offices incompatible. Such inquiry is irrelevant since the Legislature requires that a LAFCO commissioner, except for the member of the general public, hold another public office as the basis for selection as a LAFCO commissioner. We have previously concluded, therefore, that the incompatibility office doctrine has no application to such dual office holding. [Citations]" In our case, Section 4730.65 of the County Sanitation District Act provides that each of the member agencies shall be represented on the OCSD Board of Directors by one of its elected members. This law, enacted by the State Legislature, is a determination that the public benefit from such concurrent service (i.e., both as Council Member and District Director)outweighs the possible negative impacts of such a conflict. It thus eliminates the common law prohibition of one person holding two public offices concurrently. Assembly Bill No. 1797 CHAPTER 233 An act to add Section 87105 to the Government Code,relating to the Polili_c'al Reform Act of 1974. [Approved by Governor August 24,2002.Filed with Secretary of State August 26,2002.1 LEGISLATIVE COUNSEL'S DIGEST AB 1797—Harman. Conflicts of interest: disqualification. Existing provisions of the Political Reform Act of 1974 prohibit a public official at any level of state or local government from making, participating in making,or attempting to use his or her official position to influence a governmental decision in which he or she knows or has reason to know that he or she has a financial interest,as defined.Existing law also requires specified elected and appointed officers at the state and local level of government to disclose specified financial interests by filing periodic statements of economic interests. This bill would requiire a public official who holds a specified office and who has a financial interest in a decision withl"n tiie meaning o#`�t e ihcal Reform—Act of 1974 lo pu6rc�ly identi f+t ie m` ancia-1 interest giving rise to, the conflict of interest or potential conflict of interest recuse himself or herself from discussing and voting on the matter,and leave thg loom until after the discussion vote and ot disposition o the matter ip concluded, except as specified. This bill would impose a state-mandated local program by imposing these penalties on persons who violate the provisions of this bill. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. The Political Reform Act of 1974,an initiative measure,provides that the Legislature may amend the act to further the act's purposes with a 2/3 vote of each house and compliance with specified procedural requirements. This bill, which would declare that it furthers the purposes of the Political Reform Act of 1974,would therefore require a 2/3 vote. 93 a Ch. 233 —2— The people of the State of California do enact as follows: SECTION 1. .Section 87105 is added to the Government Code, to read: 87105. (a) A public official who holds an office specified in Section _87200 who has a financial interest in a decision within the meaning of Section 87100 shall,upon identifying a conflict of interest or a potential conflict of interest and immediately prior to the consideration of the matter, do all of the following: (1) Publicly identify the financial interest that gives rise to the conflict of interest or potential conflict of interest in detail sufficient to be understood by the public, except that disclosure of the exact street address of a residence is not required. (2) Recuse himself or herself from discussing and voting on the matter, or otherwise acting in violation of Section 87100. Q1 Leave the room until after the discussion vote and anX other di osition o the matter is concluded,unless the matter has b en-picec on the portion�of the agenda reserved for unconteste titters. (4) Notwithstanding paragraph (3), a public official described in subdivision (a)may speak on the issue during the time that the general public speaks on the issue. (b) This section does not apply to Members of the Legislature. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district wits be incurred because this act creates a new crime or infraction,eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. SEC. 3. The Legislature finds and declares that the provisions of this act further the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a)of Section 81012 of the Government Code. O 93 ROLL CALL BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT MEETING DATE: 01/26/05 TIME: 7:00 p.m. (SIMONIAN) .................... ANDERSON................... (WILSON) ........................ BANKHEAD................... (AMBRIZ).......................... CAVECCHE................... (GARCIA) ......................... CHRISTY..................... (COLLINS)........................ CRANDALL................... (ROSEN) .......................... DALTON....................... ,✓ G,�ii�Y��s�/ (KAWASHIMA) ................. DAVERT...................... ✓ los3 (SHAWVER) .................... DOTSON..................... (WILSON)......................... DUVALL...................... ✓" (UNDERHILL)................... ECKENRODE................. ✓ (SCHAFER)...................... FERRYMAN................... ✓ (BORTLE)......................... FRESCHI .............. ..... ✓ (COOK) ............................ HARDY......................... ✓ i (CHOI) .............................. KANG.......................... (SONDHI) ......................... LUEBBEN..................... (DOW) .............................. MARSHALL.................. �� ✓ (SWAN) ............................ MILLER ......................... / ✓ (BEAUMAN) ..................... MOORE........................ _� ✓ __ (KIRKPATRICK-PILGER). NEUGEBAUER.............. ✓ ✓ (DRISCOLL) ..................... PARKER....................... ✓ ._ (WEBB) ............................ RIDGEWAY................... (HERNANDEZ)................. SIDHU.......................... ✓ �� (CORREA)........................ SILVA........................... ✓ (RODRIGUEZ).................. WALDMAN.................... ✓ (ANTOS) .......................... YOST ........................ Lp'I�•!n'7i U 7 STAFF: Cn7 96p 7 Anderson Beekman Ghirelli � `�' �``� Kovac Kyle Ludwin /3r-f Ist�G� Miles Ooten Streed ,r Q Tomko .�.. �u / OTHERS: n � Woodruff N /,� ✓ �� Nixon " 01/26/05L � H:\dept\admin\BSOIRECTOR\Directors Roll Call.doc SIGN-IN ORANGE COUNTY SANITATION DISTRICT r. ARC 4 IJ BOARD MEETING NAME ORGANIZATION/FIRM leaseprint) leaseprint) H:\WP.DTA\ADMIN\BS\FORMS\SIGN-IN FORM.DOC BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CA 92708 REGULAR MEETING January 26, 2005 — 7:00 P.M. RE: AGENDA ITEM NO. 3 Minute excerpts have been received as set forth below. Pursuant to Regular Agenda Item No. 3, it is appropriate to receive and file said excerpts: 3. Consideration of motion to receive and file minute excerpts from the following re appointment of active and alternate Directors, as follows: City/Agency Active Director Alternate Director Fullerton Don Bankhead Leland Wilson Santa Ana Alberta Christy Mike Garcia Tustin Doug Davert Tony Kawashima H:\depflagenda\Board Agendas\2004 Board Agendas1121504 supplemental agenda.doc g � A Huntington Beach Conference and Visitors Bureau January 18, 2005 Mr. Blake Anderson General Manager Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Dear Blake, Thank you for your letter of December 14, 2004 and the opportunity for an audience with your agency. Your letter did a nice job of outlining all that the Sanitation District does to communicate the water quality off our shores and we appreciate your help getting the word out within the regional community. Sincerely, Douglas C. Traub President & CEO cc: HBCVB Board of Directors, Mayor Jill Hardy, Dr. Penny Culbreth-Graft, David Biggs, Bob Beardsley, Laurie Payne 301 Main Street,Suite 208 • Huntington Beach • California 92648-5171 •Tel 714-969-3492 Fox 714-969-5592 • www.hbvisit.com Sant a Ana 5gw,,q Ovate rshed p roject AUtho . rity .T IN E NRs OF N PR p JECCIPTA anus`20, 2QD5 gN�"1GE at ov el uT/7,,,S7 D sTHGRl1y V,Es �� ��oIA ��M t P�RICT pOS°table Stev IIPAL A'�RUtSTR/CT ATERCts Or resident. Bo e Anderso TR�cr ange Con n 10844 Ellis ty Sanitati ectors Fountain VaAve Avenue on District Dear A 927$2 O Mt Anderson' be over the Past tw, I o mo anual�2�03 1, to build Ing our meetin ac ,663 29 SAtYp future gs betwe knowle Y° `4 Coin relations en our r rel dges u will mission hiPs. esPecti ationshi the Progress ro receive to authorized Based °n ve govern: of dispute n° enr in build u made by our �nsfe good fait this Prggressg b°ards have COOP have worked going negotiation cooPerative two fig°verning b Th�s lsen�lnt P Yfient shy, of hog' Of crawe ly t° -W i ern th'Rob Ghirellent Pri ership, as well as t and �,ml oards nfiPaym nt °mmission is ints eage ork t g tetecti osd oters ofyour st °nano`v thep our We o do l as t e S staffand look f°�'ar'd to current off,�w know y� srne. �e have to continu Sincerely, further discussions and concepts o fhas. We compiled Con Fork Santa Ana and contlnuedPr pattnershiP. the SAWP [Nate ogress A rshed pro.ect Auto my Daniel B Acting Ge ° DBC Pb neral Manager °CSD payment Ctr REV 1.2p_os 11615 stertin Admirals,!n,e'Rlversjd Fqk(g51) CA �0'603 • (951)3 Planning((gopax S2gSj)352 22 ?2 CASA EXECUTIVE DIRECTOR'S REPORT ln1 ° Michael F. Dillon Executive Director/Lobbyist January 22, 2005 wk� S (DC— Nr�(N c0�OA 's c1A�S2L l Al�i�r S %%`( ;t-ArVr ANbG1zS0^) I. LEGISLATURE CONVENES FOR 2005-06 SESSION The Legislature officially convened the 2005-2006 Legislative Session on Monday, December 6, 2004. After swearing in new members and the Leadership for the coming session,both Houses adjourned to allow members to enjoy luncheons with family and friends. The Senate was in for less than one hour, the Assembly ran a little longer due to a fight over rule changes adopted by the Democratic majority for the coming session. Both Houses returned Monday,January 3'd,and with the exception of a possible summer recess, depending on passage of the Budget,will work through the Constitutional deadline of September 9'. Attached is a list of new legislators,which represents the new members who will need to be educated on the issues of importance to CASA (Attachment#1). Unfortunately, due to term limits, many members,including the newly-elected legislators, are already campaigning for higher office. Eleven of the 40 Senators are termed out in 2006 and already 8 of them have indicated their intentions or have established.campaign accounts to run for Insurance Commissioner, Attorney General, Secretary of State, Lieutenant Governor, or whatever. II. GOVERNOR'S STATE OF THE STATE OFFERS NEW CHALLENGES On Wednesday,January 5 ,Governor Schwarzenegger presented his"State of the State" address to both Houses of the Legislature and the public. Unlike many previous Governors who were adverse to risk-taking,Governor Schwarzenegger will be putting forth a number of controversial legislative proposals to the Legislature. If the Legislature is unwilling to go along with him on his reform measures,he has threatened to go directly to the voters later this year. One proposal that will affect CASA member agencies is a proposal to dump the current PERS system of a defined benefit plan, and switch to a defined contribution plan for new employees, similar to private industry plans. As a result of labor negotiations a number of years ago which resulted in basing retirement on final year salary,rather than the final 3-year average, and expensive retirement benefit increases in recent years when PERS had a "surplus," the State is having to make General Fund contributions to PERS that could reach several billion dollars in a few years.. Other controversial proposals, outlined by the Governor in his State-of-the State address, included taking legislative and congressional redistricting away from the Legislature's hands and placing it in the hands of an independent panel of retired 1 judges, a proposal to eliminate more than 100 boards/commissions, the majority of which, including medical and dental boards, are supported by licensing fees, which will not result in any General Fund savings. The Governor,in a surprise to many,is also taking on the education establishment by eliminating teacher tenure and modifying the so-called Proposition 98 school funding laws enacted by the voters in the late 1980s. III. GOVERNOR'S REDISTRICTING PROPOSAL As mentioned in my Executive Director's Reports in recent years, the Legislature redrew the Assembly,Senate, and Congressional Districts in 2000 so favorable to incumbents, that the November elections have become virtually meaningless. This November, for example, in 154 legislative and congressional races, not a single state legislator or member of Congress lost their election. As noted Sacramento political columnist,Dan Walters,has stated, "The elected officials are picking their constituents, rather the constituents choosing the elected officials." As a consequence, the Legislature has become increasingly more polarized,with very liberal Democrats being chosen in the March Primaries and elected in November, and similarly, conservative Republicans being chosen in their district races. This polarization has led to a Legislature that has become less effective in dealing with major issues, resulting in the Governor and business interests going to the ballot box with initiatives. The initiatives would take redistricting out of the hands of the Legislature and put it in the hands of an outside body, likely a group of retired judges. Those supporting the initiative recognize that it will not significantly change the composition of the Legislature, that is, Democrats will still be a majority party,but they are hopeful that the-public will send more moderate legislators of both parties to Sacramento. 41 IV. PROP 1A MAY HAVE SAVED THE DAY C)CSD Gµkve_ ui2b 16 141 FE oef-cu- 403--06 As a result of the agreements reached with the Governor and special districts,sixty-four C CASA agencies have given up a significant portion of their 20*-*roperty taxes, with 26 (or 40%) of them approaching 100% of that year's property taxes due to Proposition 1A. Admittedly the "give up" is greater than originally anticipated for reasons previously stated in my reports to the membership. Fortunately the take-away is_for two years only. Thanks to the provisions of Proposition 1A,local agency property taxes can no longer be taken away without a state-wide vote of the people. The so-called "deal"between the Governor and local government, which led to Proposition 1A,is quite significant,in my judgment,because given the $8 billion State Budget shortfall this year-and a similar shortfall again next year, the property taxes of enterprise districts,primarily water and wastewater agencies,would surely have been at risk. You will recall at last year the Legislative Analyst recom-m-e--nUe—d-Fa'IM7g io 1rom special districts, virtually all of enterprise districts' property taxes, on a permanent basis. The Analyst's rationale, which I have often repeated to you, is based on the Legislature's stated intent contained in AB 8 in 1978, which became law after the passage of Proposition 13. The Analyst specifically directs enterprise districts to get off the property tax as found in Section 16270 of the Government Code: 2 "The Legislature finds and declares that many special districts have the ability to raise revenue through user charges and fees and that their ability to raise revenue directly from the property tax for district operations has been eliminated by Article X111A of the California Constitution. It is the intent of the Legislature that such districts rely on user fees and charges for raising revenue due to the lack of the availability of property tax revenues after the 1978-79 fiscal year. Such districts are encouraged to begin the transition to user fees and charges during the 1978-79 fiscal year." Fortunately, through the concerted effort and ultimate agreement between the cities, counties,and special districts coalition, the Analyst's recommendations were disregarded as the Governor's and local government representatives'proposal eventually developed. 'Thus,while the next two years will be a difficult adjustment for many agencies, at least there should be some solace in knowing that be 'nnin in 2006- 07, the property taxes o spea istricts will be protected in the C nstitution and not su ject to rther to a-sways by the Legislature. Wow 4,=v EdZ — V. WHEN CAN THE LEGISLATURE"BORROW" YOUR PROPERTY TAXES? Proposition 1A provides that the Legislature can borrow your Property taxes in times of fiscal emer enc , as defined. Some of you have expressed your feelings that the Legislature will likely borrow property taxes in 2006-07, as the State will still be in a fiscal mess. However, this will not be the case. Prop 1A specifically precludes any such action until 2008-09,or until the so-called "VLF backfill" has been repaid,w-Fuch will not likely occur by then,giventhe State's fiscal problems. In the event the State does borrow your property taxes (an unlikely event given the strong passage of Prop 1A), he money borrowed would have to be repaid with interest, etc._ VI. LAIF RUMORS Last spring,when the Governor and the Legislature were searching for funds to help balance the State Budget,rumors began circulating that there might be a raid on the Local Agency Investment Fund (LAIF). Knowing his was likely another"urban legend," we checked with our local government friends and legislative staff to be sure, and found his was not the case. In fact,Government Code Section 16429.3 specifically states that LAIF funds shall not be subject to any transfer,loan, seizure, etc. Furthermore,State Treasurer Phil Angelides issued a letter in May 2003 in which he states, "I am aware of concerns expressed on behalf of LAIF participants as to the relationship of this program to the State's current fiscal difficulties. As your trustee for LAIF funds,I would oppose any statutory change in regard to the program and I will support he intent of the statute that protects your funds." While it is conceivable that legislation could be introduced to borrow LAIF funds, it is unlikely,given the criticism of how the State has handled its own finances. VII. NEWLY-ELECTED SENATORS APPOINTED TO KEY COMMITTEES Senate President pro Tern Don Perata appointed former Assemblywoman and now Senator, Christine Kehoe of San Diego, to chair the Senate Local Government 3 Committee,replacing Senator Tom Torlakson. Before coming to the legislature,Senator Kehoe served on the San Diego City Council from 1993 to 2000, and from 1997 to 2000 served on the California Coastal Commission. Senator Torlakson, meanwhile, has been appointed Chair of a newly-established committee, the Senate Committee on Transportation and Housing, which will focus on "smart growth" solutions. Senator Perata has also appointed newly-elected Senator Carole Migden to Chair the powerful Senate Appropriations Committee. Senator Migden previously served in the Assembly and, during her tenure, Chaired the Appropriations Committee in that House. Most recently, she has been a member of the State Board of Equalization until winning the Senate seat in November,previously held by termed-out Senate President pro Tern John Burton. On the Assembly side,Speaker Fabian Nunez officially reappointed Assemblyman Simon Salinas to chair the Assembly Local Government Committee, and Assemblywoman Judy Chu to continue serving as the Chair of the Assembly Appropriations Committee. VIII. CASA SPONSORED LEGISLATION REGARDING DUE PROCESS The CASA Attorneys Committee has recommended that CASA sponsor legislation that would provide greater due process for adjudicatory actions under the Porter-Cologne Water Quality Act. The SWRCB and the nine Regional Water Quality Control Boards are charged with a number of quasi-adjudicative decisions, such as the adoption of discharge permits and the issue of enforcement orders and penalties. These decisions often have a very significant impact on municipalities and private entities,yet persons affected by these decisions are often allowed only very limited opportunities to present evidence and argument before the decision-makers. While regulations enacted by the SWRCB appear to set forth minimum process to which affected persons are entitled, such as the right to cross-examine witnesses and present opening and closing statements, the regulations also specify that the chairperson or presiding officer may "waive"gny of the due process procedures,including the right to introduce evidence, cross-examine witnesses, etc., unless such procedures are specifically required by statute. Often the practice of"waiver" has become the rule rather than the exception in most regional boards,with persons given only five to ten minutes to present testimony on very complex issues and permits, and are routinely denied the opportunity to cross- examine and rebut evidence. In fact, according to CASA's attorneys, an appellate court recently raised the question of whether local government entities (as opposed to the private sector),regulated by the water boards,have any due process rights whatsoever (City of Brentwood vs. Central Valley Regional Water Quality Control Board). _CASA's proposed legislation would: (1) establish in statute minimum procedural rights_ to which all parties apfarin&before the water boards in quasi-judicatory rocee in s are entitled; 2) clarify that the Legislature intends that all persons, public and private, be afforde equa eatment in matters before the water boards. Bobbi Larson, CASA's Director o egal and Regulatory Affairs, with input from members of the Attorneys Committee and others, has finalized a draft legislative proposal that will be introduced shortly. 4 ' r IX. RECORD RETENTION POLICIES FOR SPECIAL DISTRICTS As a result of CASA-sponsored legislation,AB 474-Salinas,establishing record retention requirements and Secretary of State guidelines,CASA member special districts should �J consider reviewing their record retention policies. AB 474,which was signed into law as Chapter 362,became effective January 1,2005. At the November 12,2004 meeting of the CASA Attorneys Committee,Betty Burnett, attorney for South Coast Water District, offered to share with us the records retention policy developed for SCWD. If you are interested,Betty can reached at bburnettQscwd.or . X. STATE AND LOCAL APPROPRIATIONS LIMITS One of the Governor's newly-proposed initiatives seeks to bring State expenditures in line with revenues by fixing the so-called "structural deficit," and placing a cap on State expenditures. Anticipating the Governor's proposal might not be successful in the Legislature,Republican Senator John Campbell,Larry McCarthy,head of the California Taxpayers Association, and Jon Coupal, of the Howard Jarvis Taxpayers Organization, have submitted a plan for the ballot the Governor would likely embrace. Their proposed initiative has been through the title and summary process at the Secretary of State's Office and has been cleared for petition circulation. Among other things,if qualified and passed by the voters,it would require certain State fees/charges to be enacted by 2/3rds vote of the Legislature,not by the current majority vote. It would require certain local fees/charges to be approved by a 2/3rds vote of the electorate, where currently no vote is required. It also amends the State and local appropriations limit and would repeal certain provisions in the so-called Proposition 98 school funding guarantee. The attorney members of CASA's Legislative Committee are currently reviewing the proposed initiative to determine any potential impacts the proposal would have on CASA member agencies' ability to levy user fees and charges. XI. SENATOR ORTIV LEGISLATION TO BE REINTRODUCED Reacting to a series of editorials and news articles in The Sacramento Bee, citing impropriety of the Sacramento Suburban Water District,legislators began looking into the governance of California's 3,300 special districts. In November 2003, at the request of Senator Deborah Ortiz of Sacramento,the Senate Local Government Committee held an interim hearing, called "Integrity and Accountability: Exploring Special Districts Governance." There was general, although not total,support among the four legislators at the hearing for some sort of statutory reforms. Subsequently,Senator Ortiz introduced SB 1272, which ultimately died in the Senate Appropriations Committee, due in large part to significant costs to the State General Fund. Senator Ortiz has informed us that she plans on reintroducing her measure this year. Her proposal, which will affectspecial districts only, will a similar to the April 27,-2UU4 version of her B 1272 of last session. Anticipated provisions include: 1Annual compensation increases must be done in open meetings, (2) per meeting compensation will be limited to something in t e range o $1 0-150 per meeting, (3) wrastle-blower protections ,— ethics train It 12rovisions and rotsition of auditors. (6 oversight 5 by the State Controller's Office, and (7) changes to current health and welfare provisions. XII. ALTERNATIVE PROPOSAL BY ASSEMBLYMAN SALINAS Assemblyman Simon Salinas, Chair of the Assembly Local Government Committee, has indicated his intent to introduce legislation covering some of the same subject matter as the Senator Ortiz proposal,but in a form that will be more acceptable to the special district community. Unlike the Ortiz proposal, the Salinas legislation will be applicable to cities and counties, as well as special districts. During the past several weeks,CASA, ACWA,CSDA, and representatives from cities and counties have been meeting with the Assembly Local Government Committee staff in an attempt to develop an acceptable and workable proposal. Staff has been very good to work with, and we have been pleased with their early leadership on this issue. Compensation for meetings will not be limited,but all actions by a legislative body with respect to compensation must be done in a public meeting,conform to written policies for meeting attendance,be enacted by ordinance, etc. Language related to ethics training will also be included in the Assemblyman's legislation, and we anticipate it will be similar to training currently being provided by some cities, counties and special districts,and should be embraced by elected officials. We will keep you informed as these two proposals unfold. XIII. GOVERNOR'S PENSION REFORM Assembly Republican Dr. Keith Richman has introduced a proposed Constitutional Amendment that reflects the Governor's proposal for "pension reform," which basically changes the PERS and STRS systems to a defined benefit plan,rather than a defined contribution plan, as exists currently. As expected, state and local employee unions will vigorously oppose both proposals. As of this writing,CASA has not yet taken a position on the initiatives. The January r bulletin from the League of Cities indicated that the League and CSAC do not yet have a position on either the Governor's or the Richman proposal. The two organizations jointly stated, "Recent changes in State law and investment losses by Ca1PERS and other retirement systems have compounded the significant cost pressures on city and county budgets. We support the efforts of the Governor and other state leaders to focus attention on this problem. We also are committed to working with all parties,including city and county employees, to develop and adopt solutions to this problem. Pension reform is a serious issue,but we urge all parties to take the time to understand the causes for increasing costs, analyze alternative reforms and to develop consensus on appropriate reforms." XIV. GOVERNOR OFFICIALLY SUBMITS CPR RECOMMENDATION— PROPOSES ELIMINATING 88 BOARDS AND COMMISSIONS You will recall from my previous reports to you, that early last year Governor Schwarzenegger appointed a California Performance Review (CPR) commission, and charged the group with developing hundreds of revisions to state departments and agencies. Ultimately a 500 page report was produced by the CPR and was the subject of informational hearings throughout the state, with the intent to seek public comment. 6 Two of the recommendations of interest to CASA members were proposals to eliminate ,the State Water Resources Control Board and eliminate the Regional Water Ouality Control Boards. CASA submitted to the Governor's CPR a four page "letter of concern," wherein we cited problematic issues such as excessive regulatory fees, an opportunity for full and fair hearings on all matters before the boards, and the fractured relationship between the boards and local governments. Then, after an October hearing in Irvine, the CPR decided, among other things, that elimination of the SWRCB, "would result in limited opportunity for public and scientific participation, input, and debate on issues regarding water quality issues." With regard to the Regional Water Quality Control Boards,one of the justifications for keeping the boards was that"centralized oversight for water quality issues may not be responsive to community needs." When the CPR committee submitted their recommendations to the Governor for review, they decided to maintain both the SWRCB and the Regional Water Quality Control Boards, u= tote high levelof public input arguing to continue their existence. Last week,Governor Schwarzenegger, in his State of the State address to the legislature, and in his attempt to eliminate waste, fraud, and abuse in government, said, "I told you I wanted to blow up the boxes. Well,we have lit the fuse." He then went on to say that he would be embracing the CPR recommendations and was proposing to "wipe out nearly 100 unnecessary boards and commissions. No one should make$100,000 and meet twice a month." (This is in reference to the Integrated Waste Management Board and similar boards, often referred to as the "graveyard for ex-legislators and Governor's top officials.") The Governor then formally submitted a 57 page document titled, "A Government for the People for a Change: Governor's Reorganization Plan 1 — Reforming California's Boards and Commissions" to the Little Hoover Commission. Little Hoover will have 60 days to review the document and make recommendations to the legislature. According to the Governor's press release, "If neither house of the Legislature votes down the plan within 60 days of its submission to the Legislature, the reorganization plan becomes operational by law." While the Governor's Reorganization Plan 1 does not include elimination of the SWRCB or regional boards, it contains -o-ther controversial recommendations such as the elimination of all professional licensing boards, the Colorado River Board,Industrial Welfare Commission,Integrated Waste Management Board, the Interagency Aquatic Invasive Species Council,Seismic Safety Commission, California Water Commission, and the Reclamation Board. Because the Governor's Reorganization Plan 1 has to be voted entirely up or down as a comprehensive elimination of all 88 boards and commissions, there will be much debate on the proposal in the coming weeks. XV. POSSIBLE BIOSOLIDS LEGISLATION BY SENATOR DEAN FLOREZ ©M ( 1 .21. 06 fcLOROE4 Dt a , tN PACT oAAJr- 1 SluCf{- I—V-6-tSLA470� Senator Dean Florez,who represents a large segment of Kern County,held as a series of hearings this Fall on green waste, manure waste, and ultimately biosolids. At issue is the transporting of green waste and biosolids from large Southern California counties and cities to Kern County and the potential establishment of new large dairy farms and hauling of manure from the Chino Basin to Kern. Marlaigne Hudnall, CASA's Biosolid Program Manager, and affected CASA agencies have been working with Senator Florez' staff and participated in some of the hearings. One of our concerns is that Senator 7 Floret may introduce legislation calling for greater regulation of biosolids. Last week, Marlaigne and I met with the Senator's staff in Sacramento and found out that, indeed, the Senator may be introducing legislation this session. While the staff was unable to provide a lot of detail, it became apparent that the legislation would call for adding other chemical parameters to the list of constituents that must be monitored before biosolids could be land-applied. Marlaigne and I have met with several legislators from the Kern County area and have scheduled appointments with others in an attempt to assess their views on the broader issue of land application of biosolids in Kern County. We will keep you posted. XVI. CASA, SCAP, BACWA, CVCWA, AND CWEA FORM WORKING GROUP On January 6 h, the Presidents and Executive Directors of CASA,SCAP,BACWA, CVCWA, and CWEA, along with Bobbi Larson, Marlaigne Hudnall and Debbie Welch met in Sacramento to get better acquainted, share the mission and goals of each organization, and discuss issues of mutual interest. While a number specific issues were discussed, the primary focus of this initial meeting,in addition to discussing the various organizational roles,missions and priorities,was to determine ways to better coordinate our separate resources on issues of commonl concern. CASA hosted the first meeting and all of the par cipan s e t the meeting was very worthwhile. One of the issues discussed, that had statewide implications,was the growing need for certified operators. Plans have been made to meet periodically with SWRCB Chair Art Baggett and Executive Director Celeste Cantu being invited to participate in a portion of the next meeting. The participants decided to refer to the working group of organizations as the "Clean Water Alliance." XVII. KEY WATER QUALITY REGULATORY ISSUES —2005 One of our CASA members recently asked Bobbi Larson, CASA's Directory of Legal and Regulatory Affairs,what she considered to be the key water quality regulatory issues facing CASA members in the coming year. Bobbi put together a brief summary, which I thought was well done and elected to attach it to the Executive Director's Report for your information (Attachment#2). Vp0v4c+r— a �, �� f� � 3� OCS61S P1206AI" o� w WLC* W"` 8 ADVOCATING FOR CASA EDUCATING THE NEW LEGISLATORS ABOUT CASA ISSUES WHO IS NEW FOR 2005-06? On December 6, 2004, 24 new members of the Legislature will be sworn in to office. This number represents a considerable amount of new members who will need to be educated on the issues of importance to CASA member agencies. Following is a list of the new legislators (former legislator for that particular district shown in parentheses). Assembly District 5 Roger Niello (Dave Cox) Assembly District 47 Karen Bass (Herb Wesson) Assembly District 7 Noreen Evans (Pat Wiggins) Assembly District 50 Hector de la Torre (Marco Firebaugh) Assembly District 9 Dave Jones (Darrell Steinberg) Assembly District 53 Mike Gordon (George Nakano) Assembly District 18 Johan Klehs (Ellen Corbett) Assembly District 54 Betty Karnette* (Alan Lowenthal) Assembly District 20 Alberto Torrico (John Dutra) Assembly District 60 Robert"Bob" Huff(Bob Pacheco)cF— Assembly District 21 Ira Ruskin (Joe Simitian) Assembly District 62 Joe Baca, Jr. (John Longville) Assembly District 23 Joe Coto (Manny Diaz) Assembly District 63 Bill Emmerson (Bob Dutton) Assembly District 29 Mike Villines (Steve Samuelian) Assembly District 68 Van Tran (Ken Maddox)Assembly District District 31 Juan Arambula (Sarah Reyes) Assembly District 69 Tom Umberg (Lou Correa) Assembly District 33 Sam Blakeslee (Abel Maldonado) Assembly District 70 Chuck DeVore (John Campbell) �— Assembly District 35 Pedro Nava (Hannah-Beth Jackson) Assembly District 73 Mimi Walters (Patricia Bates) Assembly District 37 Audra Strickland (Tony Strickland) Assembly District 76 Lori Saldana (Christine Kehoe) * One termed-out Senator was elected to the Assembly. Ten current or former Assembly Members will be moving over to the Senate. Senate District 1 Dave Cox (Rico Oiler) Senate District 17 George Runner (Pete Knight) Senate District 3 Carole Migden (John Burton) Senate District 27 Alan Lowenthal (Betty Karnette) Senate District 11 Joe Simitian (Byron Sher) Senate District 31 Bob Dutton (Jim Brulte) a Senate District 13 Elaine Alquist (John Vasconcellos) Senate District 35 John Campbell (Ross Johnson) coq� — Senate District 15 Abel Maldonado (Bruce McPherson) Senate District 39 Christine Kehoe (Dede Alpert) �r �J 1/12/05 , , Attachment #1 2 anis ° A"691#9ASS4EMT/ONofsAWN11ON AM VICES 925 L Street, Suite 1400 Sacramento, CA 95814 (916)446-0388 Key Water Quality Regulatory Issues-2005 The following issues are expected to be among the most important to CASA members in 2005: • Development and Adoption of a Sanitary Sewer Overflow (SSO) Reduction program. The State Water resources Control Board adopted a resolution in November 2004, directing staff to work with the SSO Guidance Committee (a stakeholder group including CASA representatives) to develop an SSO reduction program and bring the proposed program to the Board for adoption in November 2005. The program will determine the "regulatory mechanism"to be used to address collection systems in California, ranging from non-bonding guidance to a statewide NPDES general permit. The program will also address reporting requirements, establish a model Sanitary Sewer Management Plan, and provide enforcement guidance. • Establishment of an Effluent Dependent Waters (EDW)Workplan: One of the biggest challenges facing California is the regulation of discharges to effluent dependent waterbodies. CASA and Tri-TAC have been meeting with the SWRCB staff for over 18 months to identify a workplan for addressing EDW issues, including potential revisions of beneficial use designations, the state Sources of Drinking Water Policy and adoption of revised water quality objectives. It is expected that the plan will be developed and work on the tasks will begin in mid-2005. • Adoption and Implementation of new fish tissue criteria for mercury: The USEPA and the SWRCB are both working on implementation strategies for the revised mercury criterion that USEPA is expected to adopt later this year. The criterion will implement the .3 mg/kg fish tissue criterion that USEPA has concluded is required to protect threatened and endangered species. It is expected that virtually every California POTW will be unable to comply with a water column number derived from the fish tissue criterion. CASA has already begun to discuss the anticipated widespread noncompliance with the SWRCB, and has helped to fund a peer review of the U.S. Fish and Wildlife Service study that is the basis for the lower criterion. • Addressing the 2010 compliance requirement in the California Toxics Rule: The California Toxics Rule allows five year compliance schedules for dischargers to come into compliance with the CTR criteria. In addition, however, the federal rule requires that all waterbodies be in compliance with the CTR criteria by 2010. That means that agencies receiving NPDES permits implementing the CTR Ensuring Clean Water for California criteria for the first time in 2006 will have only four years to comply; those who receive permits in 2007 will have only three years, etc. This may mean that POTWs and other dischargers throughout the state will be out of compliance for a variety of CTR requirements. CASA and Tri-TAC are working to develop a strategy for addressing this situation. • Electronic Reporting and Monitoring: SWRCB staff is developing an electronic reporting system for all NPDES dischargers. The goal is to have monthly compliance reports filed electronically. Testing of the e-reporting system by volunteers will begin in May 2005, and the system implemented in phases (by regional Boards)beginning in August 2005. The transition from paper to electronic reporting is scheduled to be complete by July 2006. Tri-TAC, along with the Regional wastewater associations, is working with SWRCB staff to identify potential pitfalls and problems with the e-reporting system to make the transition as smooth as possible for POTWs. In addition to these four key issues, the following regulatory matters will also be important in the coming year: • Development of the Clean Water Act section 303(d) List of Impaired Waters using the newly adopted SWRCB Listing Policy; • Development and implementation of individual TMDLs throughout the state; • Amendments to the State Implementation Policy for Toxics to address technical issues (the proposed amendments are supported by CASA); • Amendments to the California Ocean Plan; • Release of the USEPA policy on "blending" of secondary effluent; • Development of sediment quality objectives; • Adoption of revised SWRCB Water Quality Fees in May 2005 (no significant changes are currently proposed). Contact: Bobbi Larson,Director of Legal &Regulatory Affairs, (916)446-7979, ext 307; blarson@lawssd.com Ensuring Clean Water for California i THIS IS NOT AN AGENDA ITEM FOR DISCUSSION OR ACTION AT THIS MEETING FOR INFORMATION ONLY AND POSSIBLE ACTION AT THE FEBRUARY COMMITTEE AND BOARD MEETINGS i RESOLUTION NO. OCSD04-15 ESTABLISHING RULES OF PROCEDURE FOR THE CONDUCT OF BUSINESS OF THE DISTRICT A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT FIXING AND ESTABLISHING RULES OF PROCEDURE FOR THE CONDUCT OF BUSINESS OF THE DISTRICT AND REPEALING RESOLUTION NO. OCSD 01-23 WHEREAS it is necessary to establish rules of procedure to facilitate the orderly handling of business to come before the Orange County Sanitation District Board of Directors and Standing, Steering, Special and Ad Hoc Committees. NOW THEREFORE, the Board of Directors of the Orange County Sanitation District ("District"), DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Rules of Procedure. That the following rules of procedure be adopted for the conduct of business of the District: A. Regular Meetings. There shall be a regular monthly meeting of the Board of Directors of the District on the fourth Wednesday of every month at 7:00 p.m., in the Administrative Offices of the District, located at 10844 Ellis Avenue, Fountain Valley, California; provided, however, if the fourth Wednesday of the month falls upon a legal holiday, said monthly meeting shall be held on the next day thereafter, at the same time and place, unless the Board adjourns to a different date and time certain. The Board of Directors may adjourn any regular, special or adjourned special meeting to a time and place certain, as specified in the order of adjournment. B. Special Meetings. A special meeting of the Board of Directors may be called in either one of the following ways: (1) By the Chairperson of the Board of Directors; or (2) By the written request of a majority of the Steering Committee delivered to the Board Secretary. WS&S-TLW:pj:#184616:05/10/04 1 :9 The call or notice for special meeting shall be in writing and delivered personally or by mail at least twenty-four (24) hours before the time of such meeting, as specified in the notice. Any notice deposited in the regular mail addressed to a Director at the address he or she has on file with the Board Secretary postage prepaid, sixty (60) hours in advance of any such meeting as specified in the notice, shall be presumed to have been delivered. The call or notice shall specify the time and place of the special meeting, a description of the business to be transacted, and copies of all pertinent written materials. Such written notice may be dispensed with as to any Director or Alternate Director who, at or prior to the time the meeting convenes, files with the Board Secretary a written waiver of notice. Such waiver may be given by telegram. Such written notice may also be dispensed with as to any member who is actually present at the meeting at the time it convenes. The Board Secretary shall diligently attempt to notify each Director personally of the time, place and purpose of said meeting, not less than twenty-four (24) hours before the time of said meeting. The call or notice shall be posted in the administrative offices' public lobby at least twenty-four (24) hours prior to the special meeting. C. Meetings Adjourned by Board Secretary. If at any regular, adjourned regular, special, or adjourned special meeting, there is not a quorum of Directors present, the Board Secretary may declare the meeting adjourned to a stated time and place and shall cause written notice of the adjournment to be given in the same manner as for a special meeting, unless such notice is waived as provided for in special meetings. Within twenty-four (24) hours after the time of the adjournment, a copy of the order or notice of adjournment shall be conspicuously posted on or near the door of the place where the meeting was held. D. Notices to News Media. When any local newspaper of general circulation, radio or television station requests, in writing, notices of meetings of the Board of Directors, the Board Secretary shall thereafter, until receipt of a notice terminating said request, deliver notices of regular, regular adjourned, and special adjourned meetings to such newspapers, radio or television stations. Delivery shall be made in the same manner as delivery is made to the Directors. E. Conduct of Meetings. (1) Procedural Rules. The procedural rules for debate and action shall be as set forth in Table 1, attached hereto and adopted herein by reference. Robert's Rules of Order shall not be applicable or govern the procedures for the conduct of District business. WSBS-TLW:pj:#184616:05/10/04 2 (2) Legal Officer. In any case of ambiguity or uncertainty in the interpretation or application of these Rules to any procedure, the presiding officer may direct such question for a ruling to the Board's General Counsel, who shall be the parliamentarian of the Board. (3) Obtaining the Floor and Making Motions. Any member of the Board wishing to speak, or any member of the public wishing to address the Board, must first be recognized by the Chairperson. The Chairperson must recognize any member of the Board who seeks the floor when appropriately entitled to address the Board. Any member of the Board, including the Chairperson, may bring a matter of business properly before the Board by making a motion. Any member, including the Chairperson, except the member making the motion, may second the motion. Once a motion is seconded, it may be opened for discussion and debate, in accordance with the procedures in Subsection (4) below. (4) Rules for Discussion, Debate, and Deliberation by the Board. The procedures for consideration and action on all matters to come before the Board shall be in compliance with the terms of this Section, as follows: (a) Each item on the Agenda will be introduced in a form of a report by either Staff or Counsel. (b) Upon completion of the report, the Chairperson will allow for direct questions regarding the item, by Directors, each in turn, and in the order as selected by the Chairperson. (c) Upon completion of the question period, the Chairperson will entertain a motion and second for consideration by the Board. (d) Discussion among the Directors will follow. Each Director will be recognized to address the Board in the order selected by the Chairperson, with a five (5) minute time limit for each Member wishing to speak on the Agenda item, unless the time limit is waived by the Chairperson. There will be no interruptions of the Director who has been recognized. Attempted interruptions will be declared out-of-order, and the Board Member attempting to interrupt will be asked to remain silent until recognized. (e) As an additional courtesy to everyone, repetition of comments will be discouraged in the interest of time, and at the discretion of the Chairperson, can be declared out-of-order. WS&S-TLW:pj:#184616:05/10/04 3 e (f) After each Member who wishes to speak has been recognized and completed his/her remarks, a single three (3) minute period of rebuttal will be allowed any Director, unless the time limit is waived by the Chairperson. (g) If it appears to the Chairperson that any Director is pursuing a line of questioning or commentary due to lack of preparation or prior review with the District's Staff, the Director's time will be declared to have been used up, and no further inquiry will be allowed. (h) Upon adoption of a motion on an Agenda item, there will be no further discussion of that item. (5) Decorum in Debate. All Members shall address their remarks to the Chairperson and confine them to the business then pending and subject to discussion before the Board, avoiding personalities and reflections upon anyone's motives. (6) Closing or Limiting Debate. At all times the Board shall endeavor to allow free and open debate among Members of the Board. However, in the discretion of the Chairperson, it may become necessary to close or limit debate, so that action can be taken by the Board. An order by the Chairperson closing or limiting the debate can only be set aside by a majority vote of the Board. F. Quorum. A majority of the Directors shall constitute a quorum of the Board. G. Chairperson and Vice Chairperson of the Board. A Chairperson and Vice Chairperson of the Board shall be elected by a majority vote of Directors at the regular meeting in June of each year, and will assume office July 1st. The nominations for Chairperson shall be made at the regular Board meeting in May of each year, and the nominees may prepare a statement setting forth their qualifications for the office of Chairperson. The statements shall be mailed to members of the Board of Directors with the Agenda and other meeting material for the June regular meeting. The nominations and election for Vice Chairperson shall be made at the regular Board meeting in June of each year and shall be made immediately following the election of the Chairperson. The elected Vice Chairperson will assume office July 1 St. The Chairperson and Vice Chairperson shall serve at the pleasure of a majority of the Directors. In the event the office of Chairperson becomes vacant due to resignation or retirement of the incumbent prior to the expiration of the regular term, the Vice Chairperson shall automatically succeed to the office of the Chairperson and shall continue to serve through the remainder of the regular term unless sooner removed by action of a majority of the Directors. In the event the office of Vice Chairperson WS&S-TLW:pj:#184616:05/10/04 4 becomes vacant prior to the expiration of the regular term, nominations and the election of a Director to serve in that capacity shall be conducted at the next regular Board meeting. The person so elected shall serve the balance of the regularly-scheduled term unless sooner removed as a result of action by a majority of the Directors. Subject to the provisions about serving at the pleasure of a majority of the Directors, the Chairperson shall not serve more than two consecutive one-year terms for which he/she has been elected to the office of Chairperson. H. Presiding Officer. The Chairperson of the Board shall preside during meetings of the Directors. In the absence of the Chairperson, the Vice Chairperson shall preside. I. Board Secretary and Minutes. The Board of Directors shall have a person designated to serve as Board Secretary. The Board Secretary will be appointed to the position by the General Manager and shall report to the General Manager or a Department Head as designated by the General Manager. The Board Secretary will be a regular full time employee, subject to all the rules and policies applicable to all regular full time employees. The Board Secretary shall attend all meetings of the Board of Directors, unless excused by the Chairperson, and shall prepare an accurate record of each meeting for submission to the Directors and subsequent approval at the following meeting; provided, however, that when an adjourned, special or special adjourned meeting of the Board of Directors immediately precedes a regular meeting, Minutes of said meeting shall be submitted for approval at the next meeting of the Board following said regular meeting. In the preparation of Official Minutes of a meeting of the Board of Directors, the Board Secretary will not record the name of the Director who moves or who seconds the adoption of a motion or Resolution, except the vote of any individual Director shall be recorded upon that Director's request. The Minutes will reflect the votes by name of Director when required by provisions of state law. In the absence of the Board Secretary, a Secretary Pro Tern shall be appointed to exercise the duties of the Board Secretary. J. Regular Business to Come Before the Board of Directors. Insofar as practicable, all items of business to be taken up at a regular meeting of the Board shall be submitted to the Board Secretary, who shall include on the Agenda all such items submitted by Directors, the General Manager and General Counsel, and all formal communications. The Board Secretary shall mail to each Director a notice of such regular meetings, together with a proposed Agenda, not later than the Friday immediately preceding such regular meetings. Said Agenda, insofar as possible, shall include WS&S-TLW:pj:#184616:05/10104 5 copies of Resolutions, except as hereafter provided, and a description of all matters to be considered, together with any pertinent written materials. Agendas shall be posted in a location freely accessible to the public not less than seventy-two (72) hours in advance of the meeting. Resolutions designated as "standard" and adopted by the Board of Directors from time to time, and approved as to form and content, need not be included with said Agenda; provided, however, that the information completing said standard Resolutions shall be set forth on the Agenda listing, and copies of said standard Resolutions shall be on file with the Board Secretary at the meeting time and place. Items of business not known at the time the regular Agenda is mailed as herein provided, may be considered as supplemental Agenda items; provided that all requirements of the Ralph M. Brown Act (California Government Code Sections 54950 et seq.) are satisfied. No business, except with consent of two-thirds of the Directors present (a majority of Directors present for emergency actions), and only if permitted by the Ralph M. Brown Act, not appearing on the regular or supplemental Agendas may be brought before the Board of Directors. The meeting Agenda shall provide for an opportunity for members of the public to address the Board on items on the Agenda and non-Agenda items of public interest. As determined by the Chairperson, speakers may be deferred until the specific Agenda item is taken for discussion, and remarks may be limited to three (3) minutes. Speakers on non-Agenda items may address only items that are within the subject matter jurisdiction of the Board of Directors. Time allotted for such presentations is limited to three (3) minutes or less. Total time allotted for all public input on each non- Agenda item is limited to thirty (30) minutes to one (1) hour, taking into consideration the number of persons filing a request to address the Board. However, time allotments may be waived by a majority vote of the Board. K. Handling of Business and Voting. During the course of a Board meeting, routine matters listed on the Agenda for consideration will be referred to by Agenda Item Number only. Voting on all Resolutions shall be by roll call, except if waived by unanimous voice vote, in which event, the Chairperson may order a unanimous ballot cast in favor of the motion or Resolution under discussion. The name of each Director shall be called only once. On matters of considerable interest or on which there appears to be a controversy, the motion or Resolution shall be read by title or repeated by the Chairperson. The Chairperson shall thereafter call for discussion of the motion or WS&S-TLW:pj:#184616:05/10104 6 Resolution, at which time any member may discuss the pending matter. Any person other than a Director present at the meeting may speak on the motion if recognized by the Chairperson. Sole discretion as to the extent of discussion outside of the membership of the Board shall rest with the Chairperson. At the close of discussion, the Chairperson may, at the Chairperson's discretion, repeat the motion or Resolution pending, and thereafter, call for a vote. The Board Secretary shall determine and state whether or not a motion or Resolution is adopted by roll call vote. On all other matters, the Chairperson shall determine the outcome of the voting. L. Committees. (1) Standing Committees. (a) Steering Committee: There shall be a permanent Committee designated as the Steering Committee, comprised of the Chairperson of the Board, the Vice Chairperson of the Board, the immediate past Chairperson of the Board, the Chairperson of each of the Standing Committees and the Director from the County Board of Supervisors to assist in coordinating the flow of activities to the Committees and Board. The Vice Chairperson of each of the three Standing Committees shall serve as the designated Alternate, in the absence or inability to serve by any Chairperson. The Committee shall also conduct an annual performance evaluation of the General Manager and submit recommendations on his/her compensation to the Board of Directors. The Committee shall also review the General Manager's evaluation and compensation of the executive management employees, based on established criteria, and executive management's goals and objectives for the following year. The Committee shall also be authorized to assign new subjects of significant importance to the District, to the respective Standing Committee for study, evaluation and recommendation. The Steering Committee shall meet on the fourth Wednesday of each month at 5:00 p.m. preceding the Board's meeting, or at the call of the Chairperson of the Board of Directors. (b) Finance, Administrative and Human Resources Committee. There shall be a permanent Finance, Administrative and Human Resources Committee to advise the Staff and make recommendations on matters related to the financial, budgeting, administrative and personnel policies and programs of the District. WSBS-TLW:pj:#184616:05/10104 7 The Committee shall review with the Staff the procedures for development, preparation and format of the annual budget and recommend appropriate change, and counsel the Staff during the budget process to assure the proper interpretation and implementation of the Board's policies and that the desired procedures have been followed. The responsibility for consideration and adoption of the District budget rests with the Board of Directors. The Committee is responsible to periodically interview and recommend the selection of outside auditors. The Committee shall review the result of the annual audit of the District's accounts with representatives of the outside audit firm, including any comments received recommending improvements. The Committee shall review management's response to these comments and make appropriate recommendations for implementation. Periodically, the Committee shall recommend employment of an outside firm to audit internal control procedures to safeguard the assets of the District. The Committee shall interview and make recommendations on the employment of investment-banking firms, bond counsel, and if necessary or desired, financial advisors to be used in connection with the District's financing programs. The Committee shall periodically coordinate recommendations on personnel audits of the District's operations or segments of the operations on an as-needed basis. The Committee shall make recommendations on personnel policies and procedures, labor negotiations, insurers and coverage, procurement procedures, and such other related activities as may be needed or appropriate. The Chairperson and Vice Chairperson of the Finance, Administrative and Human Resources Committee shall be appointed by the Chairperson of the Board of Directors. The Finance, Administrative and Human Resources Committee shall meet on the second Wednesday of each month at 5:00 p.m., or at the call of its Chairperson. (c) Operations, Maintenance and Technical Services Committee. There shall be a permanent Committee designated the Operations, Maintenance and Technical Services Committee. With the goal of compliance with all public health and environmental laws and regulations, the Operations, Maintenance and WS&S-TLW:pj:#184616:05/10/04 8 i Technical Services Committee shall review and submit appropriate recommendations on the matters pertaining to the operation of the District Treatment Works, including such matters as current and projected service/flow needs, level and quality of treatment, conservation, recycling and reuse activities, and air quality issues. The Committee shall also review issues pertaining to the District's NPDES Ocean Outfall Discharge Permit, including annual review of the contractor(s) performing the ocean monitoring and research programs required as a condition of said permit, and related issues regarding protection of the marine waters off metropolitan Orange County's coastline from impacts resulting from the District's operations and discharge of treated wastewater. The Committee shall also review matters pertaining to contractual arrangements by the District to provide sewerage services to areas outside the District's boundaries or approved spheres of influence. The Committee shall review plans for the future needs of the District, explore alternatives and make recommendations on solutions to the Planning, Design and Construction Committee. In carrying out its responsibilities, the Committee shall regularly study, visit and observe the various operational functions of the District Treatment Works. The Chairperson and Vice Chairperson of the Operations, Maintenance and Technical Services Committee shall be appointed by the Chairperson of the Board of Directors. The Operations, Maintenance and Technical Services Committee shall meet on the first Wednesday of each month at 5:00 p.m., or at the call of its Chairperson. (d) Planning, Design and Construction Committee. There shall be a permanent Committee designated the Planning, Design and Construction Committee. The Planning, Design and Construction Committee shall review and submit appropriate recommendations on matters pertaining to capital projects which address operational needs identified by the Operations, Maintenance and Technical Services Committee, including the selection of professional consulting services to assist in studying, planning and designing needed District Treatment Works and support facilities, including computerized systems, in accordance with the Board's established policies and procedures for procuring such services; the Committee shall further review construction projects for said facilities in accordance with applicable public works laws and Board policies. Said oversight shall include the contracts for professional services and public works construction projects and addenda or change orders thereto. In carrying out its responsibilities, the Committee shall receive advance notice and regular status reports on the projects from Staff, and monitor, visit and observe the District Treatment Works' operational functions and major capital construction projects. WS&S-TLW:pj:#184616:05/10/04 9 C l The Chairperson and Vice Chairperson of the Planning, Design and Construction Committee shall be appointed by the Chairperson of the Board of Directors. The Planning, Design and Construction Committee shall meet on the first Thursday of each month at 5:00 p.m., or at the call of its Chairperson. (e) FAHR, OMTS, and PDC Committee Assignments. The Chairperson of the Board shall make all Committee assignments, and may appoint the immediate Past Chairperson to one of the Committees. (2) Special and Ad Hoc Committees. In addition to the Standing Committees, the Chairperson of the Board of Directors, or the Chairperson of a Standing Committee, or a majority of the Directors, may appoint, from time to time, Special or Ad Hoc Committees to study and report on specific matters. Such Committees shall be temporary in nature, and their assignments shall pertain to a current, specific issue. Upon completion of the assigned task, the Ad Hoc or Special Committee will be dissolved. The Chairperson and Vice Chairperson of Special and Ad Hoc Committees shall be appointed by the Chairperson of the appointing authority. Special or Ad Hoc Committees shall meet at the call of its Chairperson. M. Motion to Refer to a Standing Committee. Any Director at a Board meeting may move to have a policy or any other activity affecting the District, or any one of the member Agencies, referred to a Standing Committee for study and report. This motion shall be a privileged motion, and when duly seconded, discussion thereof shall be limited to Directors only. Said motion shall receive an affirmative vote of a majority of the Directors for adoption. Section 2: Procedure for Consideration of Demands for Corrective Action. A. Requirement of Written Demand. Prior to any person commencing a judicial action for injunction or mandamus to declare any action taken by the Board void because of failure to observe Brown Act requirements, such person must first serve upon the Board Secretary a written demand describing the alleged violation and demanding corrective action. Such demand must be served upon the Board Secretary within thirty (30) days of the complained of action. Failure to serve any such demand within this thirty (30) day period shall result in the loss of any right to challenge any action to have been taken in violation of Sections 54953, 54954.2, or 54956 of the California Government Code. WS&S-TLW:pj:#184616:05/10/04 10 4 B. Consideration of Corrective Action. Upon receipt of such a demand, consideration of the demand shall immediately be placed on the Agenda for the next meeting of the Board of Directors. If the demand is received less than seventy- two (72) hours prior to the time set for the next meeting, the Board may determine that the notice constitutes the initiation of litigation, and that the need to take action on the threatened litigation arose subsequent to the posting of the Agenda, and may consider it at that meeting pursuant to Section 1(J) above. A description of any item so placed on the Agenda shall include both consideration of the demand, and the possibility of corrective action by the Board. In considering such demands, the Board shall first determine, by motion, whether corrective action should be taken. If no motion to take corrective action is carried, the Board Secretary shall inform the demanding party in writing of the Board's decision not to cure or correct the challenged action. C. Implementing Corrective Action. If a motion to take corrective action passes, the Chairperson may entertain a motion implementing corrective action. Any motion implementing corrective action shall address the concerns raised in the consideration of corrective action. The motion implementing corrective action may include a motion to rescind prior action taken, as appropriate. Passage of a motion to rescind invalidates prior action only as of the time of the passage of the motion, and not from the date of the initial action. A motion implementing corrective action resulting from a written demand is out-of-order if the action complained of (a) was in connection with the sale or issuance of notes, bonds, or other evidences of indebtedness, or any contract, agreement, or incident thereto; or (b) gave rise to a contractual obligation upon which a party has, in good faith, detrimentally relied. In any event, the Board shall notify the party making the demand in writing of its decision to take corrective action, and shall describe any corrective action taken. This notice shall be given to the demanding party as soon as possible after the meeting, but in no event more than thirty (30) days after receipt of the demand. WS&S-TLW:pj:#184616:05/10/04 11 a t Section 3: Resolution No. OCSD 01-23 is hereby repealed. Section 4: This Resolution shall become effective upon adoption. PASSED AND ADOPTED at a regular meeting held May 26, 2004. Chair ATTEST: Board Secretary WSBS-TLW:pj:#184616:05/10/04 12 s TABLE 1 BOARD PROCEDURES AND ORGANIZATION SUMMARY OF MOTIONS A. PRIVILEGED MOTIONS Kind of Second Motion Re uired Debatable Amendable Vote Required Purpose Adjourn Yes No No Majority To end the meeting To Take a Yes No No Majority To interrupt a Recess meeting for a short time or to provide an intermission Raise a No No No None To obtain action Question of immediately in an Privilege emergency B. MAIN MOTION AND RELATED SUBSIDIARY MOTIONS Kind of Second Vote Required Motion Required Debatable Amendable Purpose Main Motion Yes Yes Yes Majority To introduce new business Amend Main Yes Yes Yes Majority To modify or alter Motion a motion Substitute Yes Yes Yes Majority To replace the main Motion motion entirely Previous Yes No No Majority To close debate Question on the main or amended motion immediately Continue to a Yes Yes Yes Majority To defer action Certain Time To Table Yes No No Majority To discontinue consideration until brought back by vote of the Board Take a Motion Yes No No Majority To bring before the from the Table group a motion previously tabled WS&S-TLW:pj:#184616:05/10/04 13 Limit or Yes No Yes Majority To limit or extend Extend Limits limits of debate of Debate Refer to a Yes Yes Yes Majority To place business Committee in hands of a Committee Withdraw a No No No None To withdraw a Motion motion before it is voted on Reconsider Yes Yes No Majority. To secure a new Must be by a vote on a motion Director who previously voted voted for the upon prevailing side on the original motion C. INCIDENTAL RULES NON-RANKING Kind of Second Vote Required Modolr Required Debatable Ametrdable Purpose Request to Yes No No Two-Thirds To facilitate Suspend the business Rules ordinarily contrary to the rules of the organization Override Yes No No Majority To have Order of the Board Chair majority rule on the order Point of Order No No No None To enforce the rules of the organization WSBS-TLW:pj:#184616:05/10104 14 ETHICS MANUALS INST. of LOCAL SELF GOVERNMENT u t r � y 1 �1 assfi.. ":f:1F ^' x OF COOKIE JARS AND FISHBOWLS: dh A PUBLIC OFFICIAL'S GUIDE N• K,�,�t4 y TO USE OF PUBLIC RESOURCES 1.r ` . f r 1 � 11.. r ' N 1! F l� 13'• "F _ — kk -�J- P '• ..I ti 1 y tk) r .j 1 i i F P� l INSTITUTE for LOCAL SELF GOVERNMENT OF COOKIE JARS AND FISHBOWLS: A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES Prepared by JoAnne Speers Special thanks to the following individuals whose time and effort contributed to this publication: Lauraine Brekke-Esparzo Ken Hampian David W.McMurchie City Manager Chief Administrative Officer General Counsel City of Del Mar And the Management Team California Special Districts Association Robert Christofferson City of San Luis Obispo McMurchic,Weill,Lenahan,Lee,Slater& Retired City Manager James B.Hendrickson Pearse,LLP Michael Colantuono City Manager Joseph Monies City Attorney City of Palos Verdes Estates City Attorney Cities of Barstow,Calabasas, Daniel Hentschke Cities of Alhambra and Moorpark La Habra Heights and Sierra Madre General Counsel Burke,Williams&Sorenson Colantuono,Levin&Rozell,APC San Diego County Water Authority Wayne Padilla Anton Dahlerbruch Richard Hill Director of Finance Deputy City Manager City Manager City of Madera City of Beverly Hills City of Capitola Joni Pattillo Terry Dermody John Larson Assistant City Manager County Counsel Council Member City of Dublin San Joaquin County City of Seal Beach Kenneth D.Rozell C.Edwards Dilkes Anita Lawrence Colantuono,Levin& Rozell,APC City Manager Director of Finance Claire Sylvia City of Bradbury City of Camarillo Deputy City Attorney Terry Dugan Anthony Manzaoetti City and County of San Francisco Director of Education City Attorney Staff League of California Cities City of Elk Grove Association of California Agencies A Anil Gandhy James Marshall Waterg Director of Finance and Technology City Manager Joann Tilton City of West Hollywood And the Management Team City Clerk Gary Gillig City of Merced City of Manteca City Attorney City of Oxnard All final decisions about the content and formatting of this publication �.r/ were made by the Institute for Local Self Government. OF COOKIE JARS AND FISHBOWLS: A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES ©2004 by the INBT nrm for LOCAL SELF GOvERNmENT 1400 K Street, Suite 400 Sacramento,CA 95814 (916) 658-8208 www.iisg.org To order additional copies of this publication, please contact CityBooks at (916) 658-8257 or use the order form included at the end of this publication. ..This publication provides an overview of ethics issues and at times provides summaries of the law.Readers should note that attorneys can,and do,disagree about many of the issues addressed in this publication.Moreover,proposals to change ethics laws are frequently introduced in the :state Legislature and new court decisions can alter the practices a public official should follow. AccordingV. • Public officials should always consult with agency counsel when confronted with specific situations related to ethics laws; • Agency counsel using this publication as a resource should always read and update the authorities cited to ensure that their advice reflects a full exammation of the current and relevant authorities; and • Members of the public reading this publication should consult with an attorney knowledgeable in the fields of ethics and campaign finance law. INSTITUTE for LOCAL SELF GOVERNMENT i ail �J CONTENTS CHAPTER 1: INTRODUCTION ..........................................................................3 ETHICS AND THE USE OF PUBLIC RESOURCES ...................................................................... 3 A QUESTION OF BALANCE ..................................................................................................4 ABOUTTHIS GUIDE............................................................................................................. 4 KEY RECOMMENDATION:ADOPT AN EXPENSE POLICY ........................................................ 6 CHAPTER 2: ACCESS TO PUBLIC RESOURCES AS A PERKOF OFFICE? ........................................................................................... 9 THE RELATIONSHIP BETWEEN EXPENSES AND SALARIES.................................................... 10 FLAT EXPENSE ALLOWANCES ............................................................................................ 13 CHAPTER 3: NOT THE MASTER OF ALL HE SURVEYS: NO PERSONAL USE OF PUBLIC RESOURCES.............................................. 17 WHATIS PERSONAL USE?................................................................................................. 17 SPECIALISSUES ................................................................................................................ 20 USE OF PUBLIC RESOURCES FOR BUSINESS ................................................................. 20 USE OF PUBLIC RESOURCES FOR CAMPAIGN PURPOSES................................................ 20 USE OF AGENCY CREDIT CARDS FOR PERSONAL EXPENSES......................................... 21 USE OF AGENCY LETTERHEAD OR TITLES ................................................................... 22 OFFICE HOLDER BADGES............................................................................................ 24 USEOF STAFF TIME.................................................................................................... 25 CHAPTER 4: WHEN IT IS NOT BETTER TO GIVE... .................................29 SPOUSETRAVEL................................................................................................................ 30 CHARITABLEDONATIONS................................................................................................... 30 CHAPTER 5: PAYABLE ON DEMAND? REIMBURSEMENTOF EXPENSES...................................................................37 GENERAL REIMBURSEMENT AUTHORIZATIONS.................................................................... 37 WHAT CONSTnurES "ACTUAL AND NECESSARY" EXPENSES?............................................ 38 SPECIAL CHARTER CITY POWERS ...................................................................................... 40 LOBBYING EXPENSES........................................................................................................ 41 CONFERENCE ATTENDANCE AND EXPENSES ....................................................................... 41 SPECIAL DISCLOSURE REQUIREMENTS FOR SPECIAL DISTRICTS .......................................... 42 INSTITUTE for LOCAL SELF GOVERNMENT CONTENTS, CONT. CHAPTER6: BEST PRACTICES.....................................................................47 ACHIEVING PRUDENCE: SOME QUESTioNs To ASK ............................................................ 47 MoRE oN WHY GOOD ETHICS is GOOD POLITICS ............................................................. 48 WHAT To Do IF AN AGENCY'S PRACTICES DIVERGE FROM THESE PRINCIPLES? ................ 49 CHAPTER 7: SAMPLE POLICY......................................................................51 USE OF PUBLIC RESOURCES AND THE LAW - KEYTHINGS TO KNOW..............................................................BACK COVER y t6rf, ,.'�N U. £ tJ�•;�7 19 i� r r ry' CHAPTER 2: ACCESS TO PUBLIC RESOURCES AS A PERK OF OFFICE There is no dispute that the stipends most elected officials receive cannot compensate them adequately for the time they spend on official duties. It is also well known that those who make careers in public service (for example,city managers and county or district administrators)usually can earn more in the private sector. To close the gap,it can be tempting to look at the opportunity to travel and incur other expenses as a"perk"of office—particularly for those familiar with norms in the private sector. It's rare for public officials to fall into this trap. The difficulty is that those who do usually attract unfavorable attention and give all public officials a bad name. Moreover,the media can portray even legitimate expenditures in a way that makes the agency look bad. The Relationship Between ,yr Expenses and Salaries.............10 r Added to all of this is a general public distrust of how government spends money. Fiat Expense Allowances ........ 13 emu' , In short,viewingaccess to public resources as a"perk"is both legally and P P g Y ethically risky. Here's why. The fact that perks are in addition to one's compensation is why,for publics officials, perks can be problematic. ffffYY'kk. Sri See,e.g., Public Policy Institute of California. Research Brief Casting a Long ShadoK•: Californians'Distrust of Government(September 2002)(analyzing the conclusions in A California State of Mind: The Conflicted Voter in a Changing! World by Mark Baldassare and noting"One of the most prominent themes in the book is that Californians simply do not trust their elected officials to spend taxpayers'money wisely or to be responsive to the public's needs and desires"). spy .4 llY 10 CHAPTER 2 "Perl�'_ s as abbreviation of the word"pergws>me"A"pet>�ns>rte'�V t 1. A,paymetrt or profit received n.additian to a re$nlar wage or salary,espemally ` a benefit. expected as one's A tip,a.gratuity 3{ •Something claimed as as exch>t Wd icight:`-'oliti, was the pergmsrte of the upper class"_(Richard B. Sewall)s _ THE RELATIONSHiP BETWEEN EXPENSES AND SALARIES Typically there is a legal limit on public official compensation levels, either in state or local statutes. Public officials,particularly elected ones, may only collect and retain such compensation that the law allows.b Any extra must be refunded.'As protectors of the public purse,courts generally take a strict approach to public official compensation limits.' Moreover,as a reflection of this tightfisted attitude,there is a strong tradition under California law of placing limits on public officials'ability to set their own salaries. For example, general law city council members cannot increase their compensation during their current term.' County boards of supervisors may set their salaries,but the act is subject to referendum." ' The American Heritage Dictionary of the English Language,(4th ed.2000). 6 For example,the salary of council members of general law cities is controlled by Government Code section 36516(a),which permits a city council to establish by ordinance a salary up to a ceiling determined by the city's population. The electorate may approve a higher salary. Cal.Gov't Code §36516(b). A council member appointed or elected to fill a vacancy is compensated in the same amount as his or her predecessor. A directly-elected mayor may receive additional compensation with the consent of the electorate or by ordinance of the city council. Cal.Gov't Code§36516.1. 'County of San Diego v.Mi/otz,46 Cal.2d 761,767,300 P.2d 1,4(1956)(action to recover fees from court reporter for faulty work). "!d See Cal.Gov't Code§36516.5(providing a change of compensation does not apply during the same term but allowing adjustment when one or more members serving staggered terns begin new terms). 10 Cal.Const.art.Xl,§I(b). INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES f 11 Salaries for members of special district governing boards are set by the enabling legislation for each type of special district." These statutes typically describe the compensation in terms of a maximum amount per day up to a specified maximum number of days per month spent in meetings or participating in district-related work. Increases to reflect changes in the cost of living tend to require a public hearing and are subject to referendum.12 These statutes typically make board approval a precondition for receiving per diem compensation for activities other than attendance at board meetings.This is good reason for governing boards to have a formal policy that specifies what types of meetings qualify for per diem, as well as what expenses can be reimbursed. The bottom line is this: There are various laws limiting public official compensation. These laws make it legally and ethically risky to view reimbursement for receiving a expense as a perk or an"extra.."13 "See,e.g.,Cal Pub.Res.Code§5784.15(a)and(d)(park and recreation district board members may be compensated a maximum of$100 per day for board meetings and$500 per month);Cal.Health& Safety Code§6489(sanitation district board members may receive$100 per day for board meetings or service rendered at request of board,not to exceed six days per month);Cal.Water Code§20201 (water district officials—as defined—may,by ordinance,provide for compensation of$100 per day for each day's attendance at board meetings or each day's service rendered at the board's request; not to exceed 10 days service/meetings per month);Cal.Water Code§34740-41 (California Water Districts must adopt bylaws fixing compensation paid to officers,but may not exceed$100 per day for attendance at board meetings and for each day's service at the request of the board);Cal Water Code §30507(county water district directors receive compensation not to exceed$100 per day for each day's attendance at board meetings or each day's service rendered at the board's request but not to exceed six days service/meetings per month);Cal.Water Code§30507.1(Contra Costa county water district directors receive compensation not to exceed$100 per day for each day's attendance at board meetings or each day's service rendered at the board's request but not to exceed 10 days service/ meetings per month);Cal.Water Code§21166(irrigation district directors in districts of less than 500,000 acres receive 1)compensation of up to$100 per day,not to exceed six days,2)irrigation district directors in districts that produce or deliver electricity receive one of the following:up to$100 per day or$600 per month,with an annual cap of$15,000);Cal.Water Code§22840(irrigation districts of 500,000 acres or more receive a salary to be fixed by ordinance and subject to referendum but cannot exceed the salary of a member of the Imperial County Board of Supervisors);Cal.Water Code§71255(municipal water district directors receive compensation not to exceed$100 per day for each day's attendance at board meetings or each day's service rendered at the board's request but not to exceed six days servicetmeetings per month). ' See,e.g.. Cal.Water Code§§20203 and 20204. rr 65 Cal.Op.Att'y Gen.517(1982). 12 CHAPTER 2 DOLLARS IN UNDOCU.NIENTED EXPENSES A northern California special district was rocked by charges of extravagant expenses and loose bookkeeping in 2003. The district ordered a number of officials to repay the expenses,which added up to tens of thousands of dollars. The local paper has made the district's practices an ongoing focus of attention.The United States Attorney indicted district officials on related charges. 1 '7 The same newspaper then launched an investigation of similar districts zr� throughout the state.The newspaper ran a series of articles chronicling practices that put these agencies in an unflattering light.The series culminated with an editorial titled"Diet at the Trough"that called for a 1. range of legislative solutions including further limits on compensation and benefits for these directors and greater oversight of expenses. This excerpt illustrates the tone of the coverage: For more than a year, we have explored the culture of self-enrichment and high living that is a trademark of too many of the state's water districts. [I]t[is]essential thatthose who seek to serve on wat erdhorictboerds do so for all the rightreasons... Those reasons have nothing to do with health insurance for life,or unlimited credit card lunches at posh restautarits,orprime nb dinners four 75 people or first-class travel to and from conferenoes.,4 Another editorial was entitled"Impervious to Shame"and noted that the particular district whose directors'expenses were highlighted had been the target of earlier scrutiny on this issue.15 The paper detailed individual purchases by individual directors, even noting family ties. Among the legislative reforms the newspaper recommended are 1)public disclosure of expenses(approval of such expenses at public meetings and posting them on Internet), 2)prohibition of district paid insurance and retirement benefits, and 3)having an outside auditor verify compliance with expenditure policies and state law. "Sacramento Bee,November 23,2003,page E4. "Sacramento Bee,November 16,2003,page E4. INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES I 13 FLAT EXPENSE ALLOWANCES Flat expense allowances tend to attract particular scrutiny. One problem is that such allowances can exceed the expenses actually incurred.As such, they can cause a public official to surpass statutory limits on public filth-,, officials' compensation.Another problem is that expense allowances do not necessarily save a public official the trouble ofdocumenting expenses. ��'�� + If a public official does not provide receipts for his or her expenses, an allowance is subject to federal income tax withholding.16 T'Salf1'�'�'� One city was hauled into court for having a fairly modest ($50-$75) s, monthly expense allowance for council members in the late 1960s.17 The ` " i �[ t f court found the allowance violated the law as an unlawful gift of public funds.'$ � �J • i S111111ERINTE'NDENT PROSECUTED FOR ADDING PERSONAL SIDE, TRIPS A school superintendent in a Central Valley school district started adding stopovers in Las Vegas to his business trips.A local taxpayers group got wind of the practice (which added up to a misappropriation of some $23,000) and went to the grand jury. The superintendent did jail time, lost his job and was - required to pay restitution. 1°Treas.Regs.§ 1.62-2T(e),§ 1.3401(a)-1T. "See Albright v City of South San Francisco,44 Cal.App. 3d 866, 118 Cal.Rpir.901 (1975) (successful challenge to a flat expense allowance for non-itemized expenses that was not supported by an ordinance or resolution finding such expenses were actual,necessary or beneficial to the public). 11See Cal.Const.Art.XVI,§ 6. 14 CHAPTER 2 AVOIDING1 • QUESTIONS To ASK • Does the law allow me to use public resources in this manner? • Am I treating an expense as a form of reward or compensation w for my public service? • How would I feel if a particular expenditure were reported in the local newspaper?How about a political hit piece? , • How would my next-door neighbor feel about my spending - - - his or her tax dollars this way?Would he or she feel resentful? Another city also found itself in court because of an expense allowance.The city prevailed,mostly because language in the city charter(which indicated the council would serve without compensation) seemed to authorize such flat expense allowances.19 The city had also adopted the allowance as an ordinance finding that the allowance equaled the amount of expenditures.20 A number of city attorneys have questioned whether a court would reach the same conclusion today.Courts have been less deferential to legislative findings in more recent cases in other factual contexts.21 Charter cities may have more latitude than other public agencies in this area because of the unique relationship to the voters and the governing body in a charter city. j°Porter v. City of Riverside,261 Cal.App.2d 832.68 Cal. Rptr. 313 (1968)(upholding ordinance allowing flat expense allowance against a claim that it violated a"no compensation" provision of the city's charter when the charier allowed such an allowance,and the ordinance specifically found expenses to be the amount of the allowance). 20 Id. at 837,68 Cal. Rptr.At 316. = See Morgan v Community Redevelopment Agency,231 Cal.App.3d 243,258,284 Cal. Rptr. "WWI 745,755 (1991)(observing that the scope of review for a legislative activity is to examine the record to see if an action was arbitrary.capricious or entirely lacking in evidentiary support). INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES I 15 7 • • W. pioientfoo'f'ou'he ing are some thoughts on the dilemma presented at the beginning of this chapter. The case study,however, is for readers to reach their own conclusions. Reasonable people can disagree or give different weight to different considerations based on local policies and community standards. The key question is: what do you think? SticAy Situation #1: With respect to staying overnight at a local motel and associated expenses after a long regional board meeting, the best approach, of course, is to know in advance whether such expenses are within the bounds of your agency's expense policies. Keeping the policy handy for such emergencies can also be a wise strategy. In the absence of such guidance, a good test is whether you feel comfortable justifying the motel, meal, toiletries and other expenses for example in public session of your agency. Certainly the presumption is not that public officials should put themselves (or others) in danger by driving long distances while fatigued or when there are flood warnings. One question to ask is whether you would make the same decisions regarding staying over if you were in the area on personal business. The analysis also can be affected by whether the lodging is a Motel 6 or a Ritz Carlton (or put another way, whether the total tab for all of the above is S80 versus$500). This is a variation on the "how would my neighbor feel?"question above. Using public resources to purchase alcoholic beverages can be a sensitive issue in some communities. If so, it may be prudent to pay for these yourself. Choosing a place to have breakfast other than a casino may be worth considering. Sometimes meals at casinos can be an exceptional value, but you may want to make sure your receipt shows that the purchase was for eggs. If the receipt is not specific,you may want to consider whether you simply pay for breakfast. This is where the newspaper or political hit piece test may be helpful, along with imagining the headline as reading "Public Official Seeks Reimbursement for Casino Expenses."Even though the meal expense may be perfectly appropriate, the risk that it could be mischaracterized and give the public a misleading impression may counsel stopping at a different place for breakfast. There also may be a similar risk associated with ordering eggs benedict, depending on the community's sensibilities and the ultimate tab. The newspaper is probably more a personal entertainment expense that is best to pay for yourself. These are just a few thoughts. With each of these dilemmas, ask yourself the questions posed at the end of this chapter to figure out what decisions make sense for you. 16 ISSUES TO PONDER Sticky Situation #2: To assist elected officials in rl -;, responding to constituent inquiries and conduct other agency business, the agency issuer each board member a laptop computer. The laptops are not fancy; they are hand- me downs finm the building department. They are a few Years old and have no bells and whistles to speak of. You get home from work one day to find your son distraught. Your home computer has crashed and he cannot finish his homework, which is an Internet research assignment. You are relieved that he has such a commitment to doing his homework. You can dial into your personal Internet service xRthout going through the agency's access number. Should you let your son use the agency laptop to finish his homework? Sticky Situation #3: The local Kiwanis club is Iwlding a benefit for underprivileged children and asks you as the mayor to write a letter on city letterhead encouraging businesses to participate As a past president of the Kiwanis club, you are only too happy to support this effort. What additional issues do you need to consider before responding to the request? Sticky Situation #4:A recent emergency has had all staff on duty for extended hours. As things start to calm down and you take a breather, you realize that tomorrow is your mentor's birthday and you usually take her to lunch to celebrate. You forgot to make reservations and purchase a gift. Your assistant hears you muttering under your breath about your oversight and offers to make the reservation and run out and purchase a gift. Any potential problems in taking him up on his offer? See page 26 for some — but not all— the thoughts one might have on these dilemmas. t c CHAPTER 3 : NOT THE MASTER OF ALL HE SURVEYS: NO PERSONAL USE OF PUBLIC ]RESOURCES These situations are tricky because public officials face both criminal and civil penalties for using public resources for personal benefit.12 Criminal penalties include a two to four year state prison term and permanent disqualification from public office.'-'Civil penalties include a fine of up to $1,000 per day on which the violation occurs, plus three times the value of the resource used.24 WHAT IS PERSONAL USE? "Personal" use of public resources are activities that are for personal enjoyment, private gain or advantage.21 "Use" means the use of public resources that is substantial enough to result in a gain in advantage for the _ user and a loss to the local agency that can be estimated as a monetary value The statute penalizes both intentional and negligent li ent violations.'-' g g What is Personal Use?............17 E..��":ra::.•a There are very narrow exceptions for "incidental and minimal" use of Special Issues..........................20 H; resources.The purpose of these exceptions appears to be more to prevent Pm'P P PP P Use of Public Resources traps for the unwary; they do not constitute an affirmative authorization for Business............................20 `, ,. �• fN:KL�L�' for personal use of public resources.An occasional telephone call 1s an Use of Public Resources • _•::.+r�°; example of an incidental and minimal use of public resources.28 for Campaign Purposes...........20 Use of Agency Credit Cards for Personal Expensees...........21 l Use of Agency Letterhead j r , orTitles..................................22 ` K: Office Holder Badges 24 Use of Staff Time....................25 ,E 2'See Col.Gov't Code§424; Cal. Gov't Code§ 8314. f Y< ti "Cal.Penal Code§424. s "Cal.Gov't Code§8314(c)(1). 'S Cal.Gov't Code§8314(b)(1). ''K`y r�'t�a{•d 26 Cal.Gov't Code§8314(b)(4). �ool "Cal.Gov't Code§8314(c). ^+F •. 'p Cal.Gov't Code§8314(b)(1). '' raw 18 CHAPTER 3 PF'RSONAL USE OF CITY CREDIT CARDS In the early 1990s, a northern California mayor was convicted for using the city's credit card, charging(over a period of months) a variety of supplies for the mayor's private business. When staff requests for reimbursement to the city (and cessation of the practice) failed, the city manager asked the vice mayor to intervene. '~ He advised the mayor to make immediate " restitution, with interest, that day, but essentially was ignored. The matter came to the attention of the grand jury, which subpoenaed key city staff members, and eventually indicted the mayor. During the mayor's trial, the city manager of a nearby city called to inquire as to the status of the mayor's prosecution. This turned out to be less about the mayor than it was about the inquirer. He too had used his city credit card improperly (to purchase baseball tickets).Although he willingly and immediately repaid the "advance,"he lost his job. INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES { 19 • TROUBLE, CAN rm-1, Aci--N, ;cY PAY My DEFENSE? Don't acarmt idt>�.To provide a defense in a criminal.action, for example,your agency must find that: J.- The.criminal action�or proceeding is;brought on account Af.an act or omission m the official's.service to the public entity, .2., Such deflense would be in the best interests of the public entity;and 3: The•fidividuail's actions were:in good Earth,Without actual malice and.make apparent interests 'of the public eutity.�' If.the lisue is the.`0ersonal use.of public resources,Jt may be. particularly.difficult for the agency to make dice oast finding, which is it the use was.in the'apparent'interests of the public ' entity Moreove;;:even if the agency could make these;findings, it doesn't halve to."There may be strong political pressures not to. Sunilaiy,aa;agency mayrefuse t�provide a defense:in a�civil .action if it finds the actions in.question related to corzWtion-or• ;fiord 30 Also,public agencies are not responsible for damage. .:awards designed to punish;oumake an:exampk-Of someone31 Note that,in these situations,that the.agency's attorney is not your attorney,with attendant.protections for attomey-client confidences.The agency attorneys obligations are to the entity as a whole—not to anyone official in that agencyY 29 See Cal.Gov't Code§995.8.See also Los Angeles Police Protective League v. City of Los Angeles,27 Cal.App.4th 168,32 Cal.Rptr.2d 574(1994)(finding city was not required to provide the defense of police officers accused of vandalism and conspiracy to commit vandalism). "See Cal.Gov't Code§ 995.2(public agency may refuse defense of civil action if,among other reasons,the agency finds the official acted because of"actual fraud,corruption or actual malice.., See also Cal.Gov't Code § 822.2(immunity from liability for misrepresentation does not apply in instances of corruption). "See Cal.Gov't Code§ 818. 12 California Rules of Professional Conduct for Lawyers, Rule 3-600(A); Ward V.Superior Court, 70 Cal.App.3d 23, 138 Cal. Rptr.532(1977)(county counsel's client is county,not assessor in his individual capacity). 20 1 CHAPTER 3 SPECIAL ISSUES USE OF PUBLIC RESOURCES FOR BUSINESS The criminal statute was the basis for a 2000 conviction of a county supervisor who,among other things,used county facilities for her private pd�ri€.' a1£' 16 law practice 33 On appeal,the supervisor argued that the jury should have i,_r both '::T been allowed to consider whether she had reimbursed the county for the use of public resources.The court said"no,"noting that the statute making cif I fi, tl 1 i P ell et 4 eft., it a crime to misuse public resources must be strictly construed.34 Although the decision was not published (which means that it cannot be cited as �'E :• �s precedent in other cases),it stands for the factual proposition that officials IT'.`O ,a,t, are prosecuted for misuse of public resources and that reimbursement may not be a defense. USE OF PUBLIC RESOURCES FOR CAMPAIGN PURPOSES The same statutes that prohibit the use of public resources for personal 1 benefit also prohibit the use of such resources for campaign purposes.31 �...� The prohibition applies to campaigns to elect candidates and campaigns in support of or opposition to ballot measures. The League of California Cities offers extensive analysis of the do's and don'ts to keep local officials on the safe side of the law in this area(visit www.cacities.org and search on "ballot measure"). 33 People v Bishop,2000 WL 520878(2000)(unpublished opinion).Another element of the prosecution was the use of county resources for campaign purposes. "The court cited People v Dillon, 199 Cal. 1 (1926),a case in which convictions were upheld on facts demonstrating that the city was reimbursed for money improperly disbursed by the defendant. While Dillon did not expressly reject a reimbursement defense to the charge of violating section 424,the court said the decision cannot be reconciled with such a defense. 39 Cal. Penal Code §424;People v. Batrin,77 Cal.App. 3d 635, 143 Cal.Rptr.731 (1978) (successful criminal prosecution of county supervisor for misusing public funds for improper political purposes),superceded on other grounds by People v. Conner,34 Cal.3d 141, 193 Cal. Rptr. 148(1983).See also Cal.Gov't Code§8314("'Campaign activity'means an activity constituting a contribution as defined in Section 82015 or an expenditure as defined in Section 82025. 'Campaign activity'does not include the incidental and minimal use of public resources, such as equipment or office space,for campaign purposes,including the referral of unsolicited political mail,telephone calls and visitors to private political entities:'). INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES 23 letterhead that the correspondence has some official imprimatur or endorsement(for example,on a letter of recommendation).Similar ethical questions apply to the use of titles and agency logos.These issues dre why some agencies simply prohibit all use of agency letterhead and logos without governing body approval. Some things to consider: • To avoid any misunderstanding,many elected officials whose agencies allow them to use agency letterhead will specifically note that the opinions in the correspondence are their own and not those of the agency.39 • The law reflects the notion that it is both unfair and unethical for public officials to use public resources to enhance their visibility and name identification. For this reason, state law forbids sending mass mailings at public expense. The Fair Political Practices DON 'T Example 1:An assistant general manager of a southern California irrigation district was convicted of misappropriating public funds a number of years ago. The manager had used his administrative assistant to type college coursework. Example 2: A district attorney lost standing in the community when he used his authority to help his son. The son was in a . fender-bender with an uninsured driver. The district attorney reportedly had the police pick up the driver and hold him until the driver signed a written promise to pay for the damage. 1 The driver hooked up with an attorney and sued the county for civil rights violations, bringing both the district attorney's and the police officers'actions under intense scrutiny. What started out as an incidental effort to vindicate his son's interests ended up being a major public embarrassment. When he realized how badly he misjudged the wisdom of his actions, the district attorney was reportedly reduced to tears. JD See Cal.Gov't Cade§89001. 24 I CHAPTER 3 BRIGUIT IDEA : No Puizr,-,o-NAi- UsE, OF PUBLIC -mcs CODE The concept of i�tusiug publ><c Xesogrces or.persanal aiu or`benefit sufficiently impaataa>ttthat a iaumber of pi lic agencies w ve`included itn their ethics co Fot`=:more boutpublic.$gency ethics codes,visit the Ethics des Resource Center at`www.ilsg:org(public confidence section). Commission has defined"mass mailings" as sending 200 or more identical pieces that contain the name or pictures of elected officials except as part of a standard letterhead.40 Even public agency newsletters that contain elected officials'names or pictures fall within the prohibition. • If a public official finds it appropriate to use official stationery for a political purpose (and the agency permits such use), it is wise to note on the correspondence that the correspondence was not produced or sent with public funds. Other Political Reform Act requirements may also apply, for example,placing the name of the committee or candidate on the outside of the envelope°1 The City of Santa Clara feels sufficiently strongly about these issues that it includes the following provision in its ethics code: "I use my title(s) only when conducting official City business,for information purposes,or as an indication of background and expertise, carefully considering whether I am exceeding or appearing to exceed my authority." OFFICE HOLDER BADGES Most agencies will issue their elected officials either business cards or some other form of identification that may be useful from time to time. Some agencies issue officials"badges"that look similar to those used by law enforcement officials. i0 See 2 Cal.Code of Regs. § 18901. "See Cal. Gov't Code§ 84305. INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES 25 AVOIDING TI-JE SELF-DECEPTION TRAP.' QUESTIONS To ASK • How does this particular use of public resources benefit the public's interest as opposed to my own personal interests? • How would I feel if a particular use of public resources were reported in the local newspaper? How about a : political hit piece? • How would my next-door neigh bor feel about my spending his or her tax dollars this way? Would he or she feel resentful? This practice has fallen out of favor for a number of reasons.It is not clear what purpose such badges serve in light of the fact that most agencies issue other forms of identification to their officials. It is also not clear what the legal authority is to issue such badges. Most importantly, there is a significant risk that someone seeing the badge might mistakenly think the official has some relationship to law enforcement. State law forbids anyone from using a badge to impersonate a police officer.°'-A city council member in Southern California was prosecuted for unlawfully using a badge and false imprisonment in 2003. The jury deadlocked 11 to I in favor of conviction.The city also refused to pay the costs of the official's defense. USE OF STAFF TIME The prohibition against personal use of public resources extends to human resources or public agency staff time. The theory is that staff time spent on personal errands for supervisors or governing body members could be used instead for public business. '=Cal.Penal Code§538d(b)(2)(making it a misdemeanor to use a badge that would deceive an ordinary reasonable person into thinking the person is a law enforcement official). 26 1 CHAPTER 3 ISSUES TO PONDER — A FENN, THOUGHTS �..r The following are some thoughts on the dilemma presented at the beginning , of this chapter. The point of the case study,however,is for readers to reach their own conclusions. Reasonable people can disagree or give different weight to different considerations based on local policies and community standards. The key question is: what do you think? Sticky Situation #2: The use of the agency laptop for your son's homework is a personal-use- of-a public-agency-resourre issue. Using the laptop provides an advantage to your family but does probably not involve a loss to the local agency that can be estimated as a monetary value. So allowing your son to use your laptop probably passes the threshold test of complying with legal standards. Of course,just because it is lawful, allowing your son to use the laptop may not necessarily be ethical.Asking yourself the various "avoiding self deception"questions could reasonably cause one to conclude that this is such an incidental use of a resource as to not be unethical. But would you want your son to go to school and announce he used the agency laptop to his teacher or classmates? Would it be better (and perhaps a better lesson for your son) to take him to the local public library to access the Internet there? Sticky Situation #3: In analyzing whether to use city letterhead to promote the local service club event,first ask yourself whether your agency has a policy governing the use of city letterhead. Such a policy may well provide the answer. If there is no governing policy, ask whether this is truly a city purpose justifving the use of the city' letterhead. Even though the event will undoubtedly benefit the community; as presently described, the event is not a city event and therefore your response will need to be that, as much as you want to help the Kiwanis Club, this is not something you can do. The fact that the effort is a worthy cause cannot be part of the analysis. Opinions can differ about what constitutes a worthy cause and a worthy organization. It may be helpful to ask yourself how you would feel if someone else were mayor and endorsed a charitable activity by an organization that is reputed to engage in practices with which you disagree. Sticky Situation #4: Using public agency staff resources for personal errands is never a good idea. This is true even when a public agency official has put in extra hours that have resulted in the errand not being accomplished. Unlike the laptop example, above, the agency probably cart estimate the monetary value of the staff time. This scenario probably flunks most, if not all, the avoiding-sef deception tests. These are just a few thoughts. With each of these dilemmas, ask yourself the questions posed at the end of this chapter to figure out what decisions make sense for you. `,, INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES 27 I NOTES: ?8 PONDERISSUES TO Sticky Situation #5: The agency's bond counsel invites you to lunch to go over the details of an upcoming financing and share some thoughts on revenue options for the agency. She selects a nice restaurant in town and the tab comes to $60, including gratuity She offers to pav, but you understand that this may give rise to reporting obligations under the Political Reform Act. Should you offer to pay because you discussed business? Sticky Situation #6: Every year a local arts group sponsors a concert in the park in your district that your constituents enjoy and enhances community pride. Because of state budget cuts, the arts group has lost funding and comes to you for assistance. The group suggests that you use a portion of the monev you have for incidental officeholder expenditures as an advance for the concert's expenses. The group then o#ers to have a raffle at the concert to pay you back at least part of the advance. Thev also offer to credit your support in the promotional materials for the concert. ff"hat are some of the issues you should ponder in evaluating your options? See page 34 for some —but not all — the thoughts one might have on these dilemmas. CHAPTER 4: WHEN IT IS NOT BETTER TO GIVE. . . These kinds of situations illustrate how the norms in the public sector can differ significantly from the private sector. It is common for business people to extend hospitality and make gifts and charitable contributions to generate goodwill for the company. However,California's constitution specifically prohibits"gifts"of public resources.43 This prohibition applies to an agency making gifts to its officials and employees.4°It also applies to gifts from either an agency or its officials to private citizens (for example, hosting meals). Because this ban is in the constitution, it applies to all public agencies. The only possible exception is charter cities. Charter cities look to their charters for limits on their ability to do something.Therefore,charter city officials must consult their charters to see if they contain parallel gift restrictions. How do you know if a gift is prohibited? The test is whether there is a Spouse Travel .........................30 valid public purpose justifying the expenditure This is another instance Charitable Donations .............30r"` in which an expense policy can provide some affirmative guidance for local officials." Such a policy can also protect officials from having a � �. decision being second-guessed in court. "See Cal. Const.art.XVI,§6("nor shall it[the Legislature]have power to make any gift i "u or authorize the making of any gift,of any pubic money or thing of value to any individuals, k?�K•«,'., municipal or other corporation whatever:.....).See also Albright it City of South San Francisco, ` 44 Cal.App.3d 866,870, 118 Cal. Rptr. 901,902(1975)(making the connection between council r' member expenses and the prohibitions against a gift of public funds).Although the prohibition is directed to the Legislature,the courts'theory is that,since general law cities,counties and special districts derive much of their authority from the Legislature, such local agencies also do not have } ,t the power to make gifts of public funds. There is an additional prohibition against granting extra compensation for work already performed by public officers,public employers or contractors.See Cal.Const.art. IV,§ 17; �r,•, art.X1, § 10. 's City and County of San Francisco v. Patterson,202 Cal.App.3d 95, 103-04,248 Cal. Rptr. 290,295(1988).See also McQuillin,Municipal Corporations, § 39.19(3d ed.)(all expenditures 1 must be for a public purpose). 11 See Roseville v. Tullev,55 Cal.App.2d 601,608-09, 131 P.2d 395,400(1942)(finding that 'f judicial second-guessing of a city's determination of what constitutes a public purpose would be Lr4 an unwarranted intrusion into the legislative function of a city council). f•' F y 30 SPOUSE TRAVEL In the private sector,company officials often travel with their spouses on business trips at company expense. Not so in the public sector. The Attorney General has concluded that this would constitute a gift of public funds because there is no direct and substantial public purpose in paying for the expenses of a public official's spouse 47 The specific question related to whether it would be proper for a hospital district to pay for a district director's spouse to attend a conference on official business. The Attorney General said no. This, of course, does not mean that your spouse cannot accompany you to official functions. It just means that this becomes a personal expense. CHARITABLE DONATIONS The California Constitution's prohibition against gifts of public funds has implications for charitable giving by public agencies"As Scrooge-like as it seems,a public official should not assume it is appropriate for public agencies to make gifts to charitable organizations. Here are some circumstances under which a public agency may contribute to a charity: 1: When the charity provides a service that complements or enhances one the public agency provides itself; 2. When there is an identifiable secondary benefit to the public agency; or 3. When the charity provides a service the public agency could provide but chooses not to. "75 Cal.Op.Att'y Gen. 20(1992)(finding paying a spouse's expenses to a conference violates both Government Code section 1090 and constitutional prohibitions against gifts of public funds). See also 65 Cal.Op.Att'y Gen. 517,521 (1982)(finding Government Code section 36514.5 does not authorize reimbursement of the expenses of any person other than a member of the city council).See also Albright v City of South San Francisco,44 Cal.App. 3d 866,869-870, 118 Cal.Rptr.901 (1975).(unauthorized reimbursement is illegal gift). 18 See generally McQuillan,Municipal Corporations, § 39.25(3d ed.)("Appropriations to charitable or nonprofit associations,without consideration[something in return), J cannot be made.") `r INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES 31 In all instances,the governing body should make findings in the minutes about the benefits to the agency associated with providing resources to the charity.As always,concluding that an expenditure may be legal is just the first step of the analysis;just because something is "legal" does not mean that it is the best use of resources in light of all competing demands on the agency's treasury. EXAMPLES OF • DocumENT BENEFITS AssocIATED WITH CHARITABLESUPPORT `RELATtO1HSIID'To :. ,:- Pos�cA��rtc�t.Phocl:Anis ' EXAlVBLE NA'ruxE of BENEI+1Ts) 1 Complementary Donatian-to Tree Foundationhas specialized service Foundation in:retum knowledge:about trees suitable for agreement to replace for;area. _ street.fiees:agency removes because of Organization shares goal of disease or old age popating`area with more trees, thereby-saving energy and enhancing property vahles for residents Offiq grants received by the,Tree Foundation mean the agency and those it serves save money on:' replacement of trees . 2.Demonstrable benefit .Boys and Girls'Club's after . Such progtalns reduce the need school programs foraaw enforcement activities in area.Programs promote public safety and law abiding youth in a positive,-east effective manner.. 3: Service agency could Homeless shelter.and Sucl ;programs help end cycle provide but does not associated placement of homelessness.Reducing profs homelessness is one of:fhe agency's.housing element goals. 32 CHAPTER 4 Special districts have an additional burden when it comes to charitable contributions. Not only must they demonstrate the contribution benefits the district, but they must also demonstrate that the expenditure falls within the specifically enumerated powers of that particular type of district. Making donations to charitable causes that are far away from the jurisdiction(for example,the victims of a hurricane)also present special challenges. Because of the distance, it is much tougher to justify the Ca rf s it 14,160 11 contribution as creating benefits to the jurisdiction's residents.Because of this, such donations are more vulnerable to legal challenge.49 z x ? Also risky is the practice that may exist in some jurisdictions where �J k'L! k l individual office holders can direct that a certain amount be given to a o f"publ c particular charity (possibly as part of an annual officeholder expense budget).Any decision to give public money to private charities should be ^ s `dr` t F"t' made by an agency governing body,so the requisite findings on the benefit to the agency and the community it serves can be made. One public agency's practices in this regard came under scrutiny, even though the agency put safeguards in place to make sure the funds were appropriately spent. The president of the local taxpayers' association suggested that using such monies for charitable contributions involves"a thin line" and is "almost like they're buying votes."50 Although the newspaper noted that the funds could not be used for campaign purposes, the newspaper observed that such funds were used to boost officeholders' public profiles. J9 See 64 Cal.Op.Att'y Gen.478(1981)(noting that grants to other agencies must serve the interests or purposes of the residents of the granting agency). 10 Here's$50,000—Spend it Well,"Sacramento Bee,November 23,2003,page B1,B6. INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES I 33 • 1SELF-DECEPTION TRAP: QUESTIONS TO ASK • Does the law allow me to use public resources in this manner? • How does this particular expenditure benefit the public's interest as opposed to my own personal interests? Y ' • Is my motivation for an expense a desire to personally curry favor with the would-be beneficiary of an expense? 34 CHAPTER 4 ISSUES TO PONDER — A FEw THOUGHTS The following are some thoughts on the dilemma presented at the beginning of this chapter. The point of the case study, however, is for readers to reach their own conclusions. Reasonable people can disagree or give different weight to different considerations based on local policies and community standards. The key question is: what do you think? Sticky Situation #5. On the S60 lunch with bond counsel scenario, this is where these issues can be particularh,difficult (again, which is why an expense policy can be helpful). One xav to avoid this situation altogether is to limit discussions to business environments (your office or hers)—it can be less gracious and limit the rapport you two develop, but it might be the safest course. In mamw communities, a $30 per person lunch tab is pretty steep. Using taxpayer dollars to pay for a vendor's lunch may not pass either the newspaper or neighbor test. While it may be a legitimate expense for reimbursement for you, the better course in the future may be to go to a less expensive place and make it clear it will be Dutch treat. Another way of looking at this situation is that if you wouldn't take yourself out to a $30 hrnch,you probably don't want to have such a lunch at your agency's expense A good strategy is to consider your agency's resources as your own: f a lunch is too expensive for your personal pocketbook perhaps it is also too expensive for the public's pocketbook There is a good likelihood your sense of what is too expensive is similar to your constituents'—who, incidentally are in a position to pass judgment on how you spend their money. Sticky Situation #6: On using your officeholder expenditure budget for the concert in the park, the preferable approach is to make sum that all expenditures of public resounres for what might be considered charitable function have a documented public benefit. Talk with your agency attorney about the best way to make this documentation happen. The fact this will be structured as a quasi-loan does not change the analysis. There is always the chance that the loan will not be paid back and, in any event, the constitutional prohibition also applies to extensions of credit. Because of this, there needs to be a demonstrated public benefit to either giving the money outright or making a loan of it. The more complex the financial an-angement, the greater potential for misunderstanding and missteps. You would want to consult with agency counsel on the legalities of having a raffle to generate repayment of the loan and whether the agreement can be suffrcient1v documented— to protect you,your agency and the arts group. f you fad yourself reluctant to consult your agency counsel on an issue because you suspect a dubious or critical reaction, that may be enough reason not to go forward. The offer to credit your support raises other ethical issues. This rill give you positive exposure among your constituents to be sure, but it is the agency as a whole that desen es the credit_for the financial support. Yes,you were responsible for narking the decision, but if you accept the offer to credit your support in the promotional materials, it will appear you are using public moneys to increase your profile in the community. This is generally not considered to be an appropriate use of public resources. These are just a few thoughts. With each of these dilemmas, ask yourself the questions posed at the end of this chapter to figure out what decisions make sense for you. INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES 35 NOTES: 36 ISSUES TO PONDER Sticky Situations 7 and 8: Your agency has registered you to attend a conference in Sacramento and has put the associated airplane and hotel bill on the agency's credit card number. Your wife is traveling with you, but you paid for her airline fare on your credit card. While you are there, your wife calls the local legislator, whom she knows from college. The legislator suggests the three of you get together for lunch at the restaurant next door to the conference center. This happens to be during one of the conference lunch sessions that will feature a preeminent speaker on the future of the California economy. Do you miss the conference session to meet with your legislator? If you do, do you pick up the tab for lunch?Do you seek reimbursement for the lunch bill if you discussed agency business with the legislator during the meal?Should the agency pay for your wife's lunch since, without her,you wouldn't have gotten face time with your legislator? What are your options? After the lunch, you start feeling unwell. You suspect the sushi plate you split as an appetizer with the legislator. You have a pounding headache and a very queasy stomach. You purchase over-the-counter products at the hotel gift shop that you desperately hope will relieve the symptoms. The clerk offers to charge these to your room. What do you say? See page 45 for some—but not all —the thoughts one might have on these dilemmas. T t. F_ t r t F. CHAPTER 5: PAYABLE ON DEMAND? REIMBURSEMENT OF EXPENSES There is a maze of statutes that describe in general terms what kinds of expenses are reimbursable.These statutes are remarkable for their lack of consistency and relative narrowness. GENERAL REim BURSEMENT AUTHORIZATIONS There are a number of statutes that allow reimbursement of officeholder expenses to varying degrees."The law relating to water district directors, for example,generally allows reimbursement of expenses incurred in the performance of official duties, as long as those duties are authorized or required by the governing board (another good argument for an expense reimbursement policy).52 Hospital district directors operate under a similar statute.53 The statutes relating to county supervisors, however, only mention reimbursing for travel-related expenses.5, Somewhere in between are city council members in general law cities, -�; who may be reimbursed for: General Reimbursement k,t + _• • "Actual and necessary" expenses which are Authorizations........................37 ' What Constitutes"Actual • Incurred in the performance of the councilmember's official duties 55 and Necessary" Expenses?......38 �` Special Charter City Powers...40 "There is one general statute that applies to all local agencies that at least one appellate court has s` characterized as an"authorization"for expense reimbursement.See Citizen Advocates,Inc.v Board Lobbying Expenses..................41 of Supervisors, 146 Cal.App.3d 171, 178, 194 Cal.Rptr.61,66(1983)(Government Code"Section 2 i.� 1091.5,subdivision(a)(2),authorizes reimbursement of'actual and necessary expenses incurred in Conference Attendance �?* ., the performance of official du More precisely,this code section creates an exception for expense §~ P tY•...) P ' Y P Pe and Expenses..........................41 ::" �• ' reimbursement decisions from the general prohibition of self-dealing.See Cal.Gov't Code§ 1090. p .: ' See,e.g.,Cal.Water Code§34741 (For California Water Districts"Each director shall ' "' Special Disclosure Requirements ��.�. .• receive...expenses incurred in the performance of his duties required or authorized by the board"),- for Special Districts................42 Cal Water Code§30507(county water district directors receive expenses incurred in performance , '• of duties required or authorized by board);Cal.Water Code§30507.1 (Contra Costa county water ;1 •,r district directors receive expenses incurred in performance of duties required or authorized by board); Cal.Water Code§21166(irrigation district directors receive actual and necessary expenses when Y r acting under orders of the board);Cal.Water Code§71255(municipal water district directors receive any expenses incurred in the performance of duties required or authorized by the board). } "See Cal.Health&Safety Code§32103(allowing travel and incidental expenses incurred by .�+r p" ~ hospital district board members in the performance of their official duties as approved by the board). ` S°Cal.Gov't Code§25008(county supervisors are allowed expenses associated with traveling outside 6 county on county business and to state association meeting)§25305(county may purchase automobiles ` °~ for use of county officers and employees in lieu of mileage;county board may allow officers and employees using county automobiles their actual and necessary expenses when traveling on county business). ss See Cal.Gov't Code§36514.5(city council members);65 Cal.Op.Att'y Gen.517,521 (1982) '' i y f4. (interpreting Government Code section 36514.5).Sec also Cal.Health&Safety Code§33114 '-• -�:s• (similar authority as to expenses of redevelopment agency members). w3._ �zil. 38 CHAPTER 5 There are a number of statutory provisions that set similar standards for reimbursement of public employee expenses.S6 There is also a law that allows automobile mileage or allowances for certain kinds of local oflicials.17 The decision on whether these requirements are met is ultimately the governing body's—not individual city council members'."An expense policy can be a vehicle for making those determinations. WHAT CONSTITUTES "ACTUAL AND NECESSARY" EXPENSES? The Attorney General has issued a number of opinions on the issue of whether an expense is "actual and necessary." In general, the Attorney General has said that a school district could not adopt regulations authorizing certain employees to purchase meals for community leaders.59 The costs of attending local civic functions could only be reimbursed when there is a"clear nexus"between such attendance and the employee's duties.60 i The Attorney General has defined "necessary" as involving a practical need based upon prevailing business practices.61 However,merely being "beneficial"to the public agency is not enough.62 For federal income tax purposes, an expense is "helpful and appropriate."An expense does not have to be required, however, to be necessary.63 16 See, e.g.,Cal. Educ.Code§44032(authorizing school district governing boards to provide for actual and necessary employee expenses incurred in the course of providing services);§44033 (authorizing governing boards to provide for automobile expense reimbursement on a monthly or mileage basis). "See Cal.Gov't Code§1223(allowing an allowance or mileage rate for state,county,judicial district,or city officer's automobile owned,rented or used in performance of duties). 65 Cal.Op.Att'y Gen.517,523(1982). 69 61 Cal.Op.Att'y Gen.303,305(1978)(finding such meals Flunked the"actual and necessary" test in the statute authorizing reimbursement of employee expenses).See also 85 Cal.Op.Att'y Gen.210,213(2002)(reaffirming the 1978 opinion with respect to meal purchases for constituents,legislators and private business owners). 60 61 Cal.Op.Att'y Gen.303,305-06(1978). 61 65 Cal.Op.Att'y Gen.516,522(1982)(citing Collins v. Riley.24 Cal.2d 912,918(1944)and determining that the expenses of a handicapped council member met this standard). 61 61 Cal.Op.Att'y Gen.303 (1978)(citing Gibson v.Sacramento County,37 Cal.App.523, 174 P.935(1918)). 6'See Internal Revenue Service Publication 463:Travel,Entertainment,Gift and Car Expenses j (2002)at 3(available at www.irs.gov). �r+� INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES I 39 In a 1944 California Supreme Court case, the court observed that the question of what constitutes a necessary expense is one of fact.The court also noted it is relevant whether the individual incurring the expense acted in good faith in finding a particular course of action to be necessary to protect his or her interests.64 , r In another case involving the propriety of a state expenditure,the court expense 17�' focused on the issue of whether the expenditure constituted state ,w business. The court noted that there must be "some direct connection ``� in 1 i ( 11 i f�3a i`t t'S- i?€? with the fulfillment of... [the official's] public duties.."65 to de ne €hi ft Ultimately, the governing board determines what is necessary."" call`suttee a An agency expense policy offers an opportunity to do this. e.ii ecessar F, With respect to meals,the policy should: &-WJ70 _fie` • Make it clear under what limited circumstances the agency will pay for officials' and others'meals. • Be explicit about the necessity underlying those circumstances. �.d Require documentation that the meal in question meets the requirements of the policy. To address public concerns about what might be considered extravagant meals being paid for at public expense, it may be useful to refer to Internal Revenue Service guidelines for daily meal expenses as a yardstick.These guidelines are adjusted for cost of living differences in different areas and are available at www.policyworks.gov/perdiem. The Institute's sample policy incorporates these suggestions. In the absence of an expense policy, consulting your agency attorney may be helpful. 64 See Metropolitan Water District v.Adams,23 Cal.2d 770,773, 147 P.2d 6,7(1944)(note that discussion occurred in context of analysis of costs associated with retaining experts in eminent domain action). bs Madden v Riley,53 Cal.App.2d 814,823, 128 P.2d 602,607(1942)(propriety of conference expenses for networking purposes). �/ 66 See 61 Cal.Op.Att'y Gen.303(1978). 40 CHAPTER 5 DON "l- Ti-iis BE YOU : What appears to have been a discrepancy of less than $10 turned up in a Los Angeles Times article in the fall of 2003.A local official had sought reimbursement for a $30 lunch for two agency officials. The apparent issue generating controversy was whether a third person(one official's spouse) lunch was also included in the tab. The agency concluded it was and censured the official for turning in a false reimbursement request. This is where the "newspaper test" can be helpful. Even relatively small, but apparently improper, expenditures can make the newspaper and cause embarrassment to public officials. Don't assume the media limits its attention to mega-abuses.Your guide needs to be whether the expenditure was proper, not whether anyone will find out about it.You cannot count on the fact that even relatively small transgressions will go unnoticed. SPECIAL CHARTER CITY POWERS As a general matter, charter cities may adopt reimbursement policies consistent with their charters.City charters are"instruments of limitation, not authorization"—meaning that the city attorney looks for restrictions in the city charter as opposed to specific permission to take a particular action.61 This view prevailed in a dispute over whether a charter city could reimburse its council members, city clerk and city attorney for the expenses associated with attending a League of California Cities conference.61 b7 See, e.g., Domar Electric. Inc. v. City of Los Angeles,9 Cal_4th 161,885 P.2d 934,36 Cal. Rptr.2d 521 (1994);Alesi v.Board of Retirement,84 Cal.App.4th 597, 101 Cal.Rptr.2d 81, (2000);Cawdrey v. City of Redondo Beach, 15 Cal.App.4th 1212, 19 Cal.Rptr.2d 179(1993); Grimm v.City of San Diego,94 Cal.App.3d 33,38, 156 Cal.Rptr.240(1979). ee See Roseville v. Tullev,55 Cal.App.2d 601,605, 131 P.2d 395,398(1943)(finding a charter city"has full control over its municipal affairs—and it has such control whether or not its charter specifically provides for the particular power sought to be exercised,so long l J as the power is exercised within the limitations or restrictions placed in the charter."). `� INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES 41 The Attorney General has suggested that charters must authorize reimbursement of certain expenses.69 However the cases relied upon in those opinions involved specific charter language that would operate as a limitation on a charter city enactment.70 LOBBYING EXPENSES There are also statutes that allow public officials to be reimbursed expenses associated with lobbying the legislature."The Attorney General has concluded that the statutory authorization,on its own,does not extend to purchases of meals for others when lobbying n If an agency governing body believes it is in the community's interest to purchase such meals, it should explain why in its expense reimbursement policy. CONFERENCE ATTENDANCE AND EXPENSES The courts have concluded that conference expenses are reimbursable as a "proper municipal purpose:'73 What happens if an official travels to a V.d conference at public expense but then does not attend the conference sessions? Since the purpose for the expenditure is to assist the official in the performance of his or her official duties,not attending the conference sessions is both unethical and arguably a dereliction of duty.l b9 See 65 Cal.Op.Att'y Gen. 517,526(1982)(concluding city charter may provide for reimbursement of office holder expenses in a manner different from Government Code section 36514.5).See also 85 Cal.Op.Att'y Gen,210,213(2002)(reaffirming the 1982 opinion and indicating that the electorate has the authority to determine the extent to which expenses are reimbursed). 70 See Porter v City of Riverside,261 Cal.App.2d 832,834,68 Cal.Rptr.313,314(1968) (upholding a flat expense allowance for city council members against a challenge that the charter prohibited compensation for council members by noting that language in the charter authorized such allowances); Woods v. Potter,8 Cal.App.41,95 P. 125(1908)(rejecting a claim for council member compensation when the charter contained provisions relating to the compensation of all charter officers,except for the city council). "See Cal.Gov't Code§ 50023(legislative bodies of cities and counties may directly or through a representative attend legislative bodies and meet with representatives of executive agencies, and present information;cost and expense incident to such meetings are proper charges against the local agency); §53060.5(cost of"attending'the Legislature and presenting information are proper charges against special districts;each district board member is allowed$.I I per mile for automobile travel and actual traveling expenses when traveling by public conveyance). 72 85 Cal.Op.Att'y Gen.210(2002). "See Roseville v Tullev,55 Cal.App.2d 601,607-08, 131 P.2d 395,399400(1943)(court deferred to city's conclusion that such attendance would improve city administration).See also Madden v.Riley,53 Cal.App.2d 814,823, 128 P.2d 602,607(1942)(propriety of conference expenses for networking purposes). "See Cal.Gov't Code§3060(providing grand jury may investigate claims of willful or corrupt misconduct in office,which can lead to removal from office).See also People v. 7Fce, 144 Cal. App.2d 750,310 P.2d 588 (1956)(phrase misconduct in office is broad enough to include willful I-aw/ malfeasance,misfeasance and nonfeasance). 42 CHAPTER 5 SPECIAL DISCLOSURE REQUIREMENT FOR SPECIAL DISTRICTS Special districts must, at least annually, disclose all reimbursements of $100 or more.75 The term "special districts" include any agency of the state,formed pursuant to general or special act,for the local performance of governmental or proprietary functions within limited boundaries.76 Although the statute refers to "publishing" or"printing" the document, the legislative history indicates that the legislative author's intent was not to require "an expensive publication"but that periodically including the document in agenda packets or otherwise printing and making the document available for public inspection in an understandable format will do the job.77 c The statutes analyzedinthis section all address the circumstances under which public agency officials may be reimbursed for their office=)folding expenses.What if the issue is one of providing'cash.advances or using an agency credit card? As this guide indicates,the statutes.relating to reimbursement are only part of the legal framework that guides how public resources should be used. There are still proscriptions against gifts of public funds,personal use of public resources and limits on elected official compensation.These same legal principles and ethical considerations apply to advances and use of agency credit cards. "See Cal.Gov't Code§53065.5(referring to Government Code section 56036(a)for the definition of special district). 71 See Cal.Gov't Code§56036(a)(includes county service areas but does not include counties, the state,school or community college districts,special assessment districts,improvement districts,community facilities districts,cities and other specified forms of entities). " 1993-94 Assembly Journal,page 5873(March 24, 1994 Letter from Assembly Member Tom Umberg). �a�►' INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES I 43 DISTRICT FNVE'STIGATES CREDIT CARD USE In fact, law enforcement authorities are reportedly investigating the use of agency credit cards by a number of local officials—a fact that has received unfavorable media coverage for the officials who are the subject of the investigation. In these cases, there were apparently no adopted expenditure policies to support individual The Lv ew y'k� spending decisions. The press portrayed the expenditures as extravagant and questioned `�A{' ?jw their relationship to the conduct of legitimate «� � p. }, +r f �•. R .'` agency business. In a recall petition against one official, the charge was levied f I- arI'a that the official used the agency and tax dollars as "his personal I` piggy bank."Media coverage of the investigation and the , ,•r, fr,L expenses in question was heavy just before the recall election. The recall succeeded. ' L 11,5 ylt b F 17 �,sWZ.", . INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES I 45 The following are some thoughts on the dilemma presented at the beginning of this chapter. The point of the case study,however, is for readers to reach their own conclusions. Reasonable people can disagree or give different weight to different considerations based on local policies and community standards. The key question is: what do you think? Sticky Situations 7 and 8: What to do about musing a conference session to meet with a legislator with your wife (a college friend of the legislator's) over lunch? Given the importance of maintaining relationships with your legislator, a credible argument is that it is beneficial to your agency to strengthen your personal relationship with your legislator. Of course, the best time would be when the meeting does not conflict with the conference. However, sometimes one has to take these opportunities when the legislator offers to be available. One has to carefully weigh the relative costs and benefits of each decision. And maybe there's a way to maximize both sets of benefits (for example, if the lunch conference session will be taped and you can listen to it on the way home). Assume you do go to lunch. There is a good chance, under the Attorney General's opinion on meals for legislators, that the expense will not be reimbursable unless your agency has a policy affirmatively authorizing such reimbursement. The suggested policy in this guide makes reimbursement appropriate if the purpose of the meeting is to communicate a policy position of the agency. This particular lunch seems more social in nature, even though some incidental issues relating to your agency may arise. Moreover, legislators are subject to the same gift reporting and limits that local elected officials are. If you decide to seek reimbursement,you will want to check with agency counsel to make sure those bases are covered. The agency should not pay for your wife's expenses, even though the objective reality is that you wouldn't have gotten face time with your legislator without her. Again, although having lunch with the legislator is useful, much of the conversation is likely to be purely social in nature. In terms of charging over-the-counter stomach remedies to the room, like many ethical dilemmas, there are a number of ways to evaluate what to do. If you are not going to get reimbursed for the lunch with the legislator, however, it may be hard to argue that the public should be responsible for the consequences of bad sushi consumed at the lunch. This seems more like a personal expense, even though there are ties to agency business. These are just a few thoughts. With each of these dilemmas, ask yourself the questions posed at the end of this chapter to figure out what decisions make sense for you. 46 CHAPTER 5 NOTES: ram,',ji'i�ce\n•ltk�,_;+� r CHAPTER 6: BEST PRACTICES The overwhelming majority of local officials take a very sparing attitude toward expenditures of public resources. Not only is this approach the right thing to do, it also sits well with both the media and the public — particularly given the constraints that local agencies are facing on the financial front. This is why good ethics is good politics. ACHIEVING PRUDENCE: SOME QUESTIONS TO ASK To summarize, here is a list of questions to ask in making spending decisions: • Does the law allow me to use public resources in this manner? • How does this particular expenditure benefit the public's interest as opposed to my own personal interest? Is my motivation for an expense a desire to personally curt' favor with the would-be beneficiary of an expense? AchievingPrudence:c Some • How would I feel if a particular expenditure were reported in the Questions to Ask....................47 4, local newspaper? How about a political hit piece? - ` More on Why Good Ethics • How would my next-door neighbor feel about my spending his or is Good Politics......................as her tax dollars this way?Would he or she feel resentful? What to Do if An Agency's Practices Diverge from • Am I making a spending decision out of a sense of reward or These Principles?....................49 ' entitlement? Although the first question is important, note that the law merely sets r ,�t, °�• �rilthi minimum standards for conduct and decision-making. Just because an expenditure might be legal,within the meaning of an agency's policies or prevailing law, the expenditure may not be ethical. '. x. 1K rLYt 48 CHAPTER 6 MORE ON WHY GOOD ETHICS IS GOOD POLITICS Focusing just on what the law allows also may not be politically savvy. Local officials are under an ongoing ethical obligation to consider the highest and best use of all public resources. The media, political opponents, and sometimes even law enforcement officials are poised to second-guess the decisions you make on such expenditures. BRIGHT IDEA : aExPENSE POLICIES Some agencies have.adopted policies that establishvl�at.lEinds of expenses are and are not appropriate.for agency oiliice fiolders :�Vhat makes_sense for-one community may not sit well wrth`anothen:Acopting such a policq enables agency decision-makers to reach a consensus.on what,makes-sense for their community._Moreover,because such a policy will'be considered=at ' ,::an open and public meeting,:the policy will have the additional crechbilit3± of the oppordmity forcommunity input A sample of such a policy is available at the end of this guide It`is also available online ta'the Ethics Resource Centerat wwwalsg.org(pubhc _confidence section). INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES I 49 BRIGHT IDEA : _ INDINADUAt. BUDGETS • rHOLDER In some jurisdictions,a decision making body will:create; a per gfficeholaer amount for t<avel and siuu'lar expenses; g -,cqr r This h ves:each nnember of the ov.... ` Po C''� g g Y access to�pportumdes fivr.training and_advocacy:It also all 1� rl. € enables the govesmng body to-collectively vvelgh these lands •. -offs Ina of expenditures awflM otheafi rs that benefit the Of course a dollar.lunit`for expenditures eaell year,doem'te poEC' i. relieve-each official froal evaluatni<g haw-'best to use the Sf i:t amount ocat. It official;must consider what lends f expenditures best serve the community,within legal constraints. The:fact that there is an amount'.budgeted i bnly the first_:step The hope is this guide will help local officials sort'tti>nough thou_Issues. . WHAT TO DO IF AN AGENCY'S PRACTICES DIVERGE FROM THESE PRINCIPLES? What if an agency allows personal charges on agency credit cards with ultimate reimbursement?What if an agency has been allowing expense reimbursement without the benefit of an adopted policy? What if an agency has made charitable contributions irrespective of findings of benefits to the community? 50 CHAPTER 6 Don't panic. The key is for the agency to address any issues it discovers to prevent repeat occurrences. The goal is for the agency's (and its officials') actions with respect to stewardship of public resources to be above suspicion. Here are some thoughts in that regard: • Being aware of the ethical and legal issues associated with the use of public resources is the first step. • Adopting and adhering to a policy with respect to the use of public resources, as suggested in this guide, is another step agency officials can take. • Having an independent auditing and control person or department for the public agency is also helpful to create a culture in which missteps are not overlooked. • Adopting a general ethics code to enhance the agency's culture of ethical conduct is yet another step. Resources to help local officials with these steps are available from the Ethics Resource Center at www.ilsg.org (public confidence section). Z ' Y o-:+ CHAPTER 7: SAMPLE EXPENSE AND USE OF PUBLIC RESOURCES POLICY POLICY STATEMENT Whereas, (insert public agency name]takes its stewardship over the use of its limited public resources seriously. Whereas,public resources should only be used when there is a substantial benefit to the city/county/special district. Whereas, such benefits include: 1. The opportunity to discuss the community's concerns with state Policy Statement.....................51 and federal officials; Authorized Expenses ..............52 '`'t=' 2. Participating re state and national or ' p g in regional,� organizations whose Meeting Stipends....................55 activities affect the city/county/district; Cost Control...........................57 �~ 3. Attending educational seminars designed to improve officials' : skill and information levels; and Cash Advance Policy..............60 , Credit Card Use.....................61 p 4. Promoting public service and morale by recognizing such service. } Expense Report Content Whereas, 1) legislative and other regional, state and federal agency and Submission Deadline.......61 „ business is frequently conducted over meals; 2) sharing a meal with Audits of Expense Reports......62 regional, state and federal officials is frequently the best opportunity for �. t Reports to Governing Board ..62 i$;' a more extensive, focused and uninterrupted communication about the R. city/county/districts policy concerns; and 3)each meal expenditure must Compliance with Laws ...........63 gin* ' comply with the limits and reporting requirements of local, state and violation of this Policy...........63 kt , federal law. , Whereas,this policy provides guidance to elected and appointed officials ', „ on the use and expenditure of city/county/district resources,as well as the standards against which those expenditures will be measured. 52 CHAPTER 7 Whereas, this policy supplements the definition of actual and necessary expenses for purposes of state laws relating to permissible uses of public resources.' Whereas, this policy also supplements the definition of necessary and reasonable expenses for purposes of federal and state income tax laws.2 Whereas, this policy also applies to any charges made to a city/county/ district credit card,' cash advances or other line of credit. AUTHORIZED EXPENSES City/County/District funds, equipment, supplies (including Ietterhead), titles,'and staff time must only be used for authorized city/county/district business'The following types of expenses generally constitute authorized expenses, as long as the other requirements of this policy are met: } fir✓ DRAFTING- NO--TE'S See„eg,Cai.:Gov't.Code:§1223.(allowing an::allowance or,mileage rate for state county,judicial:district,,or :city officer's automobilemowned, rented orused•in.performance of duties);=§ 1091.5(finding no•impermissible interest in a contract ifofficer.or employee is reimbursed actual.and mccessary expenses in performance of official duty)t. •Cal.Water Code§34741 ("Each director:shall roceive.:.expenses�mcurred is the'performance of his duties required or authorized by the board."); Cal.Health&-Safety Code §32103(allowing:travel:and incidental•expenses incurred hospital distriet board.members in the performance of their official duties as approved bythe board);Cal. Gov't Code§25008(county-supervisors are allowed expenses associatedwith traveling outside vountyon:6ounty business and:to state association ineetingy,.§.25305,(county:may.purchase automobiles for use of county;officers and.employees.in lieu of mileage;countyboaWmay allow officers and employees using county automobiles their:actual and necessary expenses when traveling on county business); See'Cal.-GovI Code f 36514 3 (city council members);65 Cal Op Att'y'Gen.517;521 (1982).(interpret'mg Government Code_section 36514.5);.Cal.:Health A Safety Code§ 33 t 14(similar authority as to expenses'of, redevelopmentagency.reembers). 2 See, e.g., 26 U.S.C. § 162. '-Because of the poterithd for confusing an--agency credit card with.a persoaat card,ambinber of agencies have concluded it is wiser not to issue officials-creditvards.-.Ibis is.consistent with:state.law that•appears:not to forgive inappropriate public agency expenses if they are:reimbursed.In the prosecution of one county, supervisor for personal use of public.resources,.the court concluded that reimbursement was not a defense.See People v Bishop,:2000 WL.:520878.(2000)'(comriction,for personal,and campaign use:of county:facilities and persomiel).The court cited to People v Dillon,:199:Cal. 1 (1926),a case in which convictions were upheld on facts-demonstrating that the.city was reimbursed formoney:improperly disbursed by the defendant:While.. Dillon:did not expressly reject ateimbursement defense to the charge oflviolating section.424,the court said the decision cannot be reconciled with such a-defense. Some agencies;allow elected officials to use their titles"for identification purposes only"as long as the communication makes it clear that the.use of the..title does-not imply:agency.participation in or endorsement of a communication. s State law:prohibits personal-use of public.resources.See, e.g.,Cal. Gov't Cods § 8314(making it unlawful `...� for state or local officials to use public resources for personal or campaign purposes).:' INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES I 53 1. Communicating with representatives of regional, state and national government on city/county/district adopted policy positions;' 2. Attending educational seminars designed to improve officials' skill and information levels;' 3. Participating in regional, state and national'organizations whose activities affect the city's/county s/district's interests; 4. Recognizing service to the city/county/district(for example, thanking a longtime employee with a retirement gift or celebration of nominal value and cost);9 5. Attending city/county/district events;10 6. Implementing a city/county/district-approved strategy for attracting or retaining businesses to the city/county/district, which will typically involve at least one staff member, and" 7. [For those agencies that pay meeting stipends,for example, water districts]Meetings such as those listed above for which a meeting stipend is expressly authorized under this policy. DRAFTING NOTES 6 See Cal. Gov't Code §§ 50023 (legislative bodies of cities and counties may directly or through a representative attend legislative bodies and meet with representatives of executive agencies, and present information;cost and expense incident to such meetings are proper charges against the local agency); 53060.5 (cost of"attending"the Legislature and presenting information are proper charges against special districts; each district board member is allowed S.11 per mile for automobile travel and actual traveling expenses when traveling by public conveyance). 'See Madden v:Riley, 53 Cal.App. 2d..814, 823, 128 P.2d 602,607 (1942)(propriety of conference..expenses. for networidng purposes). $Some agencies may want to limit pre-approved travel to in-state travel only.This may be accomplished in the_section that follows by requiring pre-approval for all out-of-state-travel. 'Counties have specific statutory authority to honor those who-have performed unique or noteworthy public service.See Cal. Gov't Code §26206 (specifying that such honors must be of nominal value and cost). See also 10 Cal. Op.Att'y Gen. 18 (1947)(school district may issue recognition pins). 10 Agency officials may wish to consider whether attending certain agency events are expenses that officials should bear personally(or through their officeholder accounts under the Political Reform Act),particularly if attendance at such events is politically advantageous. "A consensus among the peer reviewers was that such meetings typically ought to involve the agency's economic development staff or chief administrative officer to insure the meetings are maximally productive. �ar� 54 CHAPTER 7 All other expenditures require approval by the city/county/district governing body. The following expenses also require governing body approval: 1. International [and out-of-stateJ1 z travel; 2. Expenses which exceed the annual limits established for each office holder,13 and 3. Expenses exceeding$ per trip.14 Examples of personal expenses that the city/county/district will not reimburse include, but are not limited to: 1. The personal portion of any trip; 2. Political or charitable contributions or events; 3. Family expenses, including partner's expenses when accompanying official on agency-related business, as well as children- or pet-related expenses;15 4. Entertainment expenses, including theater, movies (either in-room or at the theater), sporting events (including gym, massage and/or golf related expenses), or other cultural events; 5. Non-mileage personal automobile expenses, including repairs, traffic citations, insurance or gasoline; and 6. Personal losses incurred while on city/county/district business. Any questions regarding the propriety of a particular type of expense should be resolved by the approving authority before the expense is incurred. . DR.AFTING NOTES 12 For some agencies, pre-approval of out-of-state travel may not make sense,given the frequency with which such travel occurs or the proximity ofstate-lines. 13 Some jurisdictions find it useful to set'an annual per office holder"budget"for such expenses. Such a budget does not,however, excuse agency officials from making a determination that each expense complies with the agency's policy,the law and ethical:considerations. 14 The threshold for pre-approval of travel over a certain amount for any kind of-travet:is subject to community standards. 11 75 Cal. Op.Att'y Gen.20 (1992).-(concluding there is no-substantial public-.purpose associated with-a public agency paying for spouse travel expenses). ` J INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES I 55 MEETING STIPENDS 16 GENERAL Consistent with ," directors receive $ 18 per day("daily meeting stipend") for each day's attendance at meetings, as defined in this policy. Such compensation is in addition to any reimbursement for meals, lodging, travel and expenses consistent with this policy. D.RAFT.LNG N-OYES 's?his section should only be included'for those local agencies Whose-enabling acts provide:for per=day meeting stipends.See, e.g.,Cal Pub..Res;-Code:§ 5784.15(a)and.(d)(park.and:recreationdistrict board members maybe compensated a maximum of$100 per day for board meetings and$500 per montli);'Cal. Health& Safety Code§ 6489(sanitation;district board members.may receive$100 per day for'board meetings. or service rendered at request of board.not to exceed six days per month),•Cal.Water.Code.f 2020L(water district-officials—as defined—may,by:ordinance,provide for compensation.of$100 per day for each day's attendance suboard meetings or,each days service-rendered at the board's request;not-to exceed 10•days service/meetings per month); Cal.Water Code§34740-41.(California Water Districts must adopt bylaws;fixing compensation paid to officers, ba.inay not exceed$100 per:day,for attendance at board meetings and for each day.'s service Iat the request of the board);'Cal.Water Code§'30507 (county water:district directors receive compensation not to exceed$100:•per dayTfor each day's attendance at board meetings or each day's service rendered at the board's request but:not to exceed six days service/meetings per-.month);'Cidw,Water Code § 305074{Contra Costa county waterdistrict directors receive compensation.not to exceed$1.00 per day for, each dsy's attendance at board meetings'or each days service,rendered at the.board's request but:not to:exceed,' 10'days service/meetings per month)-'Cal.Water Code § 21166(iirigation district directors.in'districts4f less than 500,000 acres receive 1)compensation of up to$100 per day,not to:exeeed six days,•2)irrigation district directors in districts that produce or deliver electricity`receive one of the:following:up to$100;per'day or $600.per month,with an annual cap of.$15,0ft,Cal.Water Code_§i22840(irrigation districts of.500,000 acres,or more receive a salary to:be fixed by ordinance and.subject to referendurn but.cannot::exceed the salary of a member of the Imperial County Board of Supervisors);Cal.Water Code §.11255-(municipal water district directors receive compensation not to exceed$100 per day for each day's attendance at board meetings or each days,service rendered at the board's request but not to exceed six days service/meetings per:month). "Insert relevant code section establishing meeting stipend amounts.and limits'for type of agency See 1botnote .16 above for examples. '$Insert amount that does not exceed statutory limits. See footnote 16 above for examples. wrnl 56 I CHAPTER 7 J ) MEETINGS AND SERVICE SUBJECT TO DAILY STIPEND To be entitled to a daily stipend under this policy,a the event in question must constitute one of the following: 1. A meeting of the district board within the meaning of Government Code section 54952.2(a);19 2. A meeting of a district committee within the meaning of Government Code section 54952(b);20 I An advisory body meeting within the meaning of Government Code section 54952(b);21 or 4. A conference within the meaning of Government Code section 54952.2(c)(2)22 of the following organizations (list organizations as relevant to district's jurisdiction,for example]: • California Special Districts Association; • Association of California Water Agencies; • California Association of Sanitation Agencies; • California Parks and Recreation Society. DRAFTING NOTES' 19 That section reads as follows: .. ....: ..: (a)As used in this chapter, "meeting" includes any congregation of a majority of the members of a legislative body at the same time and place to hear, discuss, or deliberate upon any item that is within the subject matter jurisdiction of the legislative body or the local agency to which it pertains. See Cal. Gov't Code § 54952.2(a). Note that this is the test for meeting suggested by.the Association for California Water Agencies in its sample policy on directors'compensation and expense reimbursement.. 20 That section reads as follows: A commission, committee,board,or.other body of a local agency, whether permanent or temporary, decisionmaking or advisory,created by charter,ordinance,resolution,or formal action of a legislative body. However, advisory committees, composed solely of the members of the legislative body that are.less than a quorum of the legislative body are not legislative bodies,except that standing committees of legislative body, irrespective of their composition,which have a continuing subject matter jurisdiction,or a meeting schedule fixed by charter,,ordinance,resolution,or formal action of a;legislative body are legislative`bodies for purposes of this chapter. See Cal. Gov't Code § 54952(b). 2' See Cal. Gov't Code §54952(b)'("advisorycommittees, composed solely of the members of the legislative_ body that are less than a quorum of the legislative body"). 22 That section reads, in pertinent part: a conference or similar gathering open to the public that involves a.discussion of issues of general interest to the public or to public agencies of the type represented by the legislative body,provided that a majority of the members do not discuss among,themselves, other than as part of the scheduled program, business of a specified nature that is within the subject matter jurisdiction of the local agency. See Cal. Gov't Code § 54952.2(c)(2). / INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES I 57 4. A meeting of any multi jurisdictional governmental body on which the district director serves as the district's designated representative?' 5. Any meeting attended or service provided on a given day at the formal request of the district board and for which the district board approves payment of a daily meeting stipend.' AGGREGATE LIMITS The number of days for which a district director receives a daily stipend will not exceed the aggregate limits established by state law.21 COST CONTROL26 To conserve city/county/district resources and keep expenses within community standards for public officials, expenditures should adhere to the following guidelines. DRAFTING NOTES 23"That section reads as follows: (s)As`used in this chapter,"meeting"includes any congregation of i.majority of the`membeis of a legislative body.at the same time and place to hear,discuss,or deliberate upon any item that is.within the subject matter jurisdiction of the legislative body or the local agency:to_which,Wpertams. See Cal.Gov't Code§ 54952.2(a).Note that this is the test for meeting-suggested by the Association for California Water Agencies in'its sample policy on-directors?compensation and expense reimbursement. Check to make sure your district's enabling act includes authorization:for payment of a dailystipend for non-meeting expenses: 21 See footnote 16 above.for examples '` 26 Some agencies have chosen(usually through a request for proposals process)to work with atingle travel agency to promote cost control and accountability on airline flights and:lodging.Another option is to4imit°the number of staff who can contact the travel agency to book or change travel plans. 58 CHAPTER 7 TRANSPORTATION The most economical mode and class of transportation reasonably consistent with scheduling needs and cargo space requirements must be used, using the most direct and time-efficient route. In the event that a more expensive transportation form or route is used,the cost bome by the city/county/district will be limited to the cost of the most economical, direct, efficient and reasonable transportation form. Automobile mileage is reimbursable at Internal Revenue Service rates presently in effect (see www.irs.gov). These rates are designed to compensate the driver for gasoline, insurance, maintenance, and other expenses associated with operating the vehicle.27 This amount does not include bridge and road tolls,which are also reimbursable. LODGING Lodging costs will be reimbursed or paid for when travel on official city/ county/district business reasonably requires an overnight stay.28 If such lodging is in connection with a conference,lodging costs should not exceed the group rate published by the conference sponsor for the meeting in question. For overnight stays in other contexts, another helpful source of guidance is Internal Revenue Service per diem rates for lodging, which include adjustments for higher cost locations (see Publication 1542 at www.irs.gov or www.policyworks.gov/perdiem).29 The site also has DRAFTING NOTES 27 The law permits,a vehicle allowance.See Cal.Gov't Code § 1223 (allowing an allowance ormileage rate.. for state,county;judicial district, or cityoffrcer's automobile owned,.rentedor.used in_performance of duties Using the more typical Internal Revenue ServiceCode mileage rate for distance actually traveled avoids questions over the amount,of any such:allowance,however.See Albright v City of South San Francisco,44:" Cal.App.3d 866,'118 Cal. Rptr. 901 (1975)(successful challenge to a flat expense;allowance for non-itemized expenses.that was not supported by an ordinance or resolution finding such expenses.were.actual,.necessary.= or beneficial.to the'public); Citizen Advocates v Board of Supervisors of Stanislaus.County.;146 Cal'App. :j:: 3d 171, 194 Cal.Rptr. 61 (1-983)(finding a flat car:allowance that.supplements a per:mile`reimbursement au that permissible).Note that.thereis a special statutory 4eimbursement.rate`for.special,district .directors traveling on legislative business.See Cal. Gov't Code §53060.5.(cost of"attending".the.Legislature and presenting,information are proper charges against special.districts;each.special district.board rmember..Is allowed$11 per mile for automobile travel and actual traveling expenses whentraveling-by ypublic conveyance). 2e An agency may want to provide guidance on,what some circumstances reasonably requiring an.overnight stay(for example,by distance or hours of,travel from the agency's location). 29 The.Internal Revenue Service establishes per:diem thresholds for employees;Zany amounts in excess of-thi Per diem for a.given area is treated as:additional_wages for tax purposes.For example,for,2004,the standard per them rate was$SS.for.lodging in general However'the rate for.the'San Francisco.area(as defined) was.$139. INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES I 59 references to hotels that have government rates at or below Internal Revenue Service per diem limits. MEALS Meal expenses and associated gratuities should be moderate,taking into account community standards and the prevailing restaurant costs of the area.A helpful source of guidance is Internal Revenue Service per diem rates for meals and incidental expenses, which include adjustments for higher cost locations (see Publication 1542 at www.irs.gov or www.poficyworks.gov/perdiem).10 [The city/county/district will not payfor alcohoUpersonal bar evenses.]" TELEPHONE/FAX/CELLULAR32 Officials will be reimbursed for actual telephone and fax expenses incurred on city/county/district business. Telephone bills should identify which calls were made on city/county/district business.For cellular calls when the official has a particular number of minutes included in the official's plan, the official can identify the percentage of calls made on public business. AIRPORT PARKING Long-term parking should be used for travel exceeding 24-hours. DRAFTING NOTES. '0 The Internal Revenue Service establishes per diem thresholds fquanployees; any amounts in excess of the per diem for a given area is treated as additional wages for tax puiposes.For example, for 2004,the standard per diem rate was$31 for meals and incidental expenses in general.However the rate for Los Angeles, San Francisco, San Diego and San Jose areas (as defined) was $51. 31 Alcohol-related expenses should or should not be reimbursed according to-community standards. An alternative to an all or nothing policy on.alcoholic beverages is to:give specified management-level employees authority to engage in"third policy hosting expenses"for alcoholic beverages. 32 Note that it may be an effective cost control measure to provide elected officials with access to agency telephones and faxes for official business and not to reimburse for calls and faxes made on personal equipment. 60 CHAPTER 7 OTHER Baggage handling fees of up to $1 per bag and gratuities of up to 15 percent will be reimbursed. Expenses for which city/county/district officials receive reimbursement from another agency are not reimbursable. CASH ADVANCE POLICY From time to time,it may be necessary for an official33 to request a cash advance to cover anticipated expenses while traveling or doing business on the city/county/district's behalf.Such request for an advance should be submitted to the [indicate whom]34 days prior to the need for the advance with the following information: • The purpose of the expenditure(s); • The benefits of such expenditure to the residents of city/county/ district; • The anticipated amount of the expenditure(s) (for example, hotel rates, meal costs, and transportation expenses); and ! • The dates of the expenditure(s). Any unused advance must be returned to the city/county/district treasury within two35 business days"of the official's retum,along with an expense report and receipts documenting how the advance was used in compliance with this expense policy. In the event[indicate who will be processing such requests] is uncertain as to whether a request complies with this policy, such individual must seek resolution from the city/county/district governing board. DRAFTING NOTES 33 Some agencies limit cash advances. One approach is to make cash advances only available for.line(less well compensated)staff and elected and appointed officials in the amount of the recommended Internal Revenue Service per diem for the area being traveled to.Another is to offer partial cash advances. 34 For example, agency manager for elected officials and supervising department heads for staff. 35 Other time thresholds may be appropriate. 36 Choose a timeeriod that is but also i . , ....... `' p p s mindful of legal restrictions that exist with respect to .: .having extended access to agency cash.This.issue.is analogous to the"float"..issue when officials use agency . credit cards for personal purposes. See Cal. Penal Code §424: INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE TO USE OF PUBLIC RESOURCES 61 parr/ CREDIT CARD USE POLICY City/county/district does not issue credit cards to individual office holders but does have an agency credit card for selected city/county/district expenses.37 City/county/district office holders may use the city/county/ district's credit card for such purposes as airline tickets and hotel reservations by following the same procedures for cash advances.Receipts documenting expenses incurred on the city/county/district credit card and compliance with this policy must be submitted within five business days of use.31 City/County/District credit cards may not be used for personal expenses, even if the official subsequently reimburses the city/county/district39 EXPENSE REPORT CONTENT AND SUBMISSION DEADLINE Expense reports must document that the expense in question met the requirements of the policy.For example,if the meeting is with a legislator, the local agency official should explain whose meals were purchased, what issues were discussed and how those relate to the city/county/ district's adopted legislative positions and priorities. DRAFTING NOTES "The decision on whether to issue agency credit cards toindividuals is a policy determination.Many I xperienced administrators advise against issuing agency credit cards to either elected officials or staff because of the potential for inadvertent use for personal purposes and the legal questions about whether one can be protected from civil and criminal liability by reimbursing the agency.(See.footnote 3)..An alternative used by some:public agencies is the Cal-Card program,which provides for:specific dollar limits per card holder and can be restricted for use with certain kinds of vendors.The.Cal-Card provides a clear audit/documentation trail., The program is administered through;a.master contract with the State of California.For t6oro information, see www.documents.dgs.ca.gov/pd/calcard/calcardreq.pdf. Potential alternative language if an agency does issue credit.cards is as follows: Clty/County/District officials with city/county/distrlct credit cards may.only use those cards for official agency business consistent with this expense policy. Credit card expenses will be periodically reviewed by the governing body or its designee. Each credit card holder will,.as a part of that individual's expense report,document compliance with this expense.policy. 38 Choose.a time period that is practical,but enables agency financial staff to verify cbarges.owthe credit.card monthly bill. 39 Note that this provision can be useful even if an agency does not issue credit cards to individuals because it establishes that using a central credit card for personal purposes is impermissible.' 62 CHAPTER 7 l Officials must submit their expense reports within 30 days of an expense being incurred, accompanied by receipts documenting each expense 40 Restaurant receipts,in addition to any credit card receipts,are also part of the necessary documentation. Receipts for gratuities and tolls under $5 are not required. Inability to provide such documentation in a timely fashion may result in the expense being borne by the official. AUDITS OF EXPENSE REPORTS All expenses are subject to verification of compliance with this policy. REPORTS TO GOVERNING BOARD At the following city/county/district governing body meeting,each official shall briefly report on meetings attended at cioVcounty/district expense.If multiple officials attended, a joint report may be made 41 Wit A, NOTES 40 If the deadline for expense reimbursement-requests is too long or non-existent,it may be difficult to remember why certain expenses were incurred.'Moreover,there may be audit issues:in:terms of recognizing', the expense in the proper year. - 41 In making a joint report, officials should be mindful about open meeting laws governing communications among members of a legislative body.There is a.conference exception to the Brown Act,as long-as a majority. ._ of the members of a legislative body does not discuss among themselves business that is within the subject matter jurisdiction of the local agency(other than as part of the scheduled program).See Cal. Gov't Code § 54952.2(c)(2).Officials should not discuss among themselves the content of a joint report in advance of:a public meeting. Simply asking one official to be the lead on the report during the public meeting and.then asking others if anything was omitted should avoid Brown Act issues. INSTITUTE for LOCAL SELF GOVERNMENT • A PUBLIC OFFICIAL'S GUIDE To USE OF PUBLIC RESOURCES I 63 fir✓ COMPLIANCE WITH LAWS City/County/District officials should keep in mind that some expenditures may be subject to reporting under the Political Reform Act and other laws. All agency expenditures are public records subject to disclosure under the Public Records Act [and other Laws]43 VIOLATION OF THIS POLICY Use of public resources or falsifying expense reports in violation of this policy may result in any or all of the following: 1)loss of reimbursement privileges, 2) a demand for restitution to the city/county/district, 3) the agency's reporting the expenses as income to the elected official to state and federal tax authorities and 4) prosecution for misuse of public resources. DRAFTING NOTES 42 For example,meals are considered"gifts"to legislators that must be reported by them if the total value of gifts given from the agency exceeds$50 in a year;there also is an annual gift limit.In 2003-2004, this limit is$340. See Cal. Gov't Code § 87103(3). Registered lobbyists,by contrast, are limited to gifts of$10 per month. See Cal.Gov't Code §§ 86201-86204. 43 See generally Cal. Gov't Code §§ 6250 et seq. (California Public Records Act). Special districts have an additional obligation to prepare and annual summary of expense reimbursements over$100 and make those available for public disclosure. Cal. Gov't Code § 53065.5. ws� 64 CHAPTER 7 NOTES: USE OF PUBLIC RESOURCES AND THE LAW - KEY THINGS TO KNOW }` The law is very strict about Spouse expenses are not the permissible uses of public a permissible use of resources by individual public `' public resources. ofl'icials.What may be common practice in the private sector Other areas subject to scrutiny may not be acceptable in the are expense allowances and public sector. hosting meals for others. ... It is advisable to check with r Generally speaking, the expense must be necessary. The Attorney one's agency counsel about the ' General has defined "necessary" laws that apply to your agency. using such words as`indispensable," Adopting an expense policy "unavoidable" and "something ] can guide public officials on that cannot be done without" `..e✓ what the community believes Merely being "beneficial" to the to be "necessary" expenses public agency is not enough. by individual officials. Reimbursing a public agency Expense policies can supportF. for a personal use of public agency officials if their resources may not avoid or expenses are ever questioned. get you out of trouble. 1' Issuing agency credit cards . :� is not advised because of ' their potential for mistaken use or abuse. Of Cookie Jars and Fishbowls: A Public Official's Guide to Use of Public Resources V.r� SKU 1556 Price: $20.00 v n �1 i nr w - O z r t f yr. � r Vj a w M � a.x ice. �7r' r1..�� < �a _�� r +� rt f .s �:':t ri 'i.:.. 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C;I���L r)+1.: .�'.a�'Z�S •aY.}~ t >,�`ik � r�, 5 '� r. _ ��W_r''`` .,1 ..i lL .if r�..r y 4it -.ar.. lr� �4 �jt i i";:1..• Pc�.Ir, �y. �1: '1.� 1'� � 9Y.1 �. rY� /y�r^:�'�+,���,+� tl'��• i y i,.:� .�i / :.4 Y�, r%:�� !J>�+533, i'.� �. ����i.:��� .�� - - ,.r ? C +Y." M1'I Trr�S�tl • u{'J' ! f i 1 �T'.7flirx!✓�' ..!_�,L4���.5:•=rl��'.➢LR'�l � W� �s.ti:.dllt:�••..� :�_!hdFw:.sE'yw�.'_•-. �.i'Y�.4`�r..t-J-.�..4�'r SlF^ .. _.r._ ♦.,r�.y�n t _ _. ���t}r tre�..�+ �3.�.�i.... - WASTE MANAGEMENT FOCUSES ON INTEGRITY The Institute for Local Self Government is profoundly grateful to the Waste Management Charitable Foundation for providing finding for Developing a Local Agency Ethics Code. A Process-Oriented Guide. The partnership is especially meaningful given Waste Management's process-oriented 0 commitment to its own code of ethics and values. Waste Management is California's largest solid waste company, providing collection, recycling, transfer and landfill �CUS D� services to residential, commercial and industrial customers in over 260 communities. inte fit Waste Management's code outlines the company's ■ ■ core values of honesty, respect, responsibility, citizenship, al 11CIPIUS101 environmental stewardship and excellence while emphasizing the need for fair and honest business dealings in all aspects of the company's business. The company MUM regularly communicates these values to its employees through its "Focus on Integrity" program. Implementation strategies include: • Assuring each employee has copies of the code (also available online at http://w,xN,v.wm.com/NewWM/about/Code_of Ethics.pdf); • Training programs; • Workplace posters, wallet cards and magnets with the company's ethics hotline number; and • Regular features in the company's employee newsletter and other employee communications relating to ethics issues. Waste Management has a Business Ethics and Compliance Department that takes the lead on these activities. the department also investigates and resolves ethical lapses. The company's Vice President of Business Ethics and Compliance briefed the Institute's Ethics Advisory Panel on the company's practices. Waste Management's provision of both finding and expertise materially assisted the Institute in making this guide available to local officials. �a..� SELF GOVERNMENT DEVELOPING A LOCAL AGENCY ETHICS CODE: A PROCESS-ORIENTED GUIDE Prepared by JoAnne Speers Special Thanks to the Following Individuals Whose Time and Effort Contributed to this Publication: Jennifer Sparacino Steve Dorsey Yvonne Hunter City Manager, Santa Clara City Attorney, Norwalk, Legislative Representative, San Marino and Buena Park League of California Cities Richards, Watson and Gershon Production Assistance: Charles Summerell All final decisions about the content and formatting of this report were made by the Institute,for Local Self Government. DEVELOPING A LOCAL AGENCY ETHICS CODE: A PROCESS-ORIENTED GUIDE C 2003 by the INSTITUTE for LOCAL SELF GOVERNMENT 1400 K Street, Suite 400 Sacramento,CA 95814 (916) 658-8208 www ilsg.org To ceder additional copies of this publication, please contact Cio Books at (916) 658-8257 or trse the order form included at the end or this publication. BOARD OF DIRECTORS PRESIDENT Jerry Patterson Member.Board ofTmstees Coast Community College Disftict S 1.rf' i.r 0 V 1:R \'gl I•'�:1 VICEPPRESIDENT Rosemary Corbin Former Mayor,City of Richmond SECRETARY Harriet Miller Former Mayor.Santa Barbma EXECUTIVE DIRECTOR JoAnne Spects; November 2003 iEl Dear Reader: BOARDDoe Beaaiallhoven PemCrunties ndScector Was there something we missed? Or was a piece of information provided Chief.Counties and Sehoats g Pa1IIelfhip in this publication the "difference maker" on a project? Hal Conklin Director of Public Affiirs Southern California Edison Company` Either way, we want to know. The Institute strives to produce meaningful So Reporter and A ho U�'t� and helpful publications that can assist local officials in carrying out their near,Gardner duties. Your input and feedback, therefore, is vital! Comments from readers Former City Manager, City of Oaklaod help us understand what you need and expect from Institute publications. Mark S.Gaagbao Director of Public Affairs Sempra Energy Utilities We have provided a feedback form on the back of this page and would Dan Harrison DirecLe InternalofCities Administration Leaeur of CaliforniaCal greatly appreciate it if you could take a moment to provide some Patricia Jones constructive Comments. Assi=W Executive Director Association of Day Area Goyemmenls William Lee Executive Vice President Economies Ratar ein Chris is McKenzie Executive Director League of California Cities Art r kahara Protiden[, JoAnne Speers Jerry Patterson Manur °`"am Forme mayor.Servitor F—recutive Director President, Board of Directors Fanner Mayor.City of Mountain Vim Daniel IL Whileburst President.Faremen Former Mayor.City of rrano League Board Liaison Members Rath Vreeland Muvor Pro Tcm,City of M[mtcrcy I.ec Ann Garda Mayor,City of Grand Terrace Rooto MEntrR Evearrur Gordon Paul Smith Former Director of Stale Finance \ Slate or Califomia FEEDBACK• • ' We are interested in hearing your comments. We would like to know how you used this publication, what you liked about it,and how you believe it could be improved. This is your chance to shape future Institute publications. Thank you in advance for your time in filling out this form.You may copy this page and either mail or fax it to: Institute for Local Self Government Attn: Ethics Code Guide 1400 K Street. Suite 400 Sacramento,CA 95814 Fax: (916) 444-7535 Or comment by e-mail to speersj@cacities.org. Please put "Ethics Code Guide" in the subject line. Name: toptionalt Title: (helpful) Contact Info: Address: toptional) City: State: Zip: Instructions: To what degree did you find this guide useful? (please nark bogies that apply) Do you think the process for adopting or updating an ethics code in this guide will be helpful for your agency? Is your agency likely to use the ideas in this guide ❑ O ❑ ❑ D for adopting or updating an ethics code? Did this guide provide meaningfid options for El ❑ ❑ ❑ addressing ethics challenges facing your agency? Do you think an ethics code will enhance public ❑ 0 El ❑ 0 confidence in your agency? Comments/Suggestions? .ter INSTITUTE for LOCAL SELF GOVERNMENT i CONTENTS FORWARD............................................................................................................................ 1 CHAPTER 1:WHAT IS AN ETHICS CODE?..................................................................3 CORECONCEPT.......................................................................................................................... 3 ETHICSCODE GOALS.................................................................................................................. 3 VALUES-BASED VERSUS RULE-BASED CODES...............................................................................4 FURTHER LIMITS ON RULE-BASED CODES..................................................................................... S ETHICSLAWS IN CALIFDRNIA .............................................................................................. 6 DOETHICS LAws WORK? .................................................................................................. 7 CHAPTER 2: MOTIVATIONS,OPPORTUNITIES AND RISKS ...................................9 MOTIVATIONS: THE GOOD,BAD AND UGLY .................................................................................. 9 OPPORTUNITIES......................................................................................................................... I I RISKS...................................................................................................................................... I I CHAPTER 3: KEY DECISIONS IN THE CODE ADOPTION PROCESS.................. 13 TO WHOM SHOULD THE CODE APPLY? ...................................................................................... 13 WHO SHOULD BE INVOLVED IN THE CODE ADOPTION PROCESS?................................................... 14 WHAT TOPICS SHOULD BE INCLUDED?....................................................................................... 16 WHAT ABOUT ACCOUNTABILITY?............................................................................................... 17 SELFENFORCEMENT ......................................................................................................... 17 THE POWER OF DISCUSSION AND PERSUASION ..................................................................... 18 REPROVAL OR CENSURE .................................................................................................... 20 SUGGESTED ITERATIVE PROCESS FOR ADOPTING AN ETHICS CODE ................................................. 22 A NOTE ABOUT THE IMPORTANCE OF IMPLEMENTATION STRATEGIES ............................................... 26 CHAPTER 4: ETHICS CODE MENU............................................................................. 27 WHOSE.VALUES? ..................................................................................................................... 27 VALUESSELECTION PROCESS..................................................................................................... 28 ETHICS CODE MENU/WORKSHEET ............................................................................................. 30 PREAMBLES ............................................................................................................................. 41 INSTITUTE for LOCAL SELF GOVERNMENT CONTENTS, CONT. CHAPTER 5: IMPLEMENTATION ISSUES ..................................................................43 MAKING THE CODE REAL: IMPLEMENTATION STRATEGIES ............................................................. 43 1°SELF FIRST'............................................................................................................................ 45 CREATING A CULTURE- OF RECOGNITION...................................................................................... 47 RECRUIT WITH ETHICS IN MIND................................................................................................. 50 TRAINING ................................................................................................................................ 50 THE IMPORTANCE• OF AN ANNUAL REVIEW .................................................................................. 51 PROMOTING THE CODE WITHIN THE COMMUNITY.......................................................................... 51 A SPECIAL NOTE ABOUT ETHICS CODES AND CAMPAIGNS............................................................ 52 CHAPTER 6: CONCLUSION........................................................................................... 55 RESOURCES OF INTEREST...........................................................................................57 WEBSITES................................................................................................................................ 57 1 / PUBLICATIONS .......................................................................................................................... 58 �d INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE � 1 FoRwARD ..,jr "All that is necessary for evil to triumph is for good Jr 1people/ to do nothing." —Edmund Burke. 18th-centuty English political philosopher "Optin:ism is the father that leads to achievement." —Helen Keller, ?Oth-centurn American social activist, public speaker and author Polls suggest that, fairly or unfairly, the public has serious reservations about the ethics of public officials.' How can local officials demonstrate that they (and their agency) are different from this perception? The first step, of course, is to be different. The process of adopting and implementing a values-based ethics code can help. Here is how: r. • Public Discussion. It helps by involving your agency in an open discussion on which ethical values are most important for your agency. • Commitment. The code that evolves from these discussions will represent the agency officials'commitment to conform their conduct to the code. • Implementation and More Discussion. The implementation process, in which the code is disseminated,referred to and discussed is an opportunity to further reflect on ethical values. It is also an opportunity to incorporate those values in one's everyday activities. • Review and Update.The annual review process is an opportunity to refine the code and ensure that it continues to reflect the sensibilities of the agency's officials and the community they serve. 'See genci-al1v Berman. Evan M.,"Public Cvnicism: Manifestations and Responses."in The Ethics Edge. international C'ityrCounty Management Association: 1998.at 20h-21�. 2 I FORWARD Make no mistake about it:achieving these benefits requires a commitment of both time and energy by the agency.The task is not simply to adopt a code. The task is to build an organizational culture—from the top down — that demonstrates ethics are important. Building an organizational culture is an arduous task. But the journey of a thousand miles,as Lao Tzu observed,begins with a single step.The other necessary nigredient,of course,is a commitment to keep taking those steps.And the process of building,maintaining and/or restoring public trust in your agency is a very worthwhile journey to undertake. Public trust and confidence is vital to your agency's ability to grapple with the difficult issues within the agency's jurisdiction, be they budgetary issues or issues of policy on which there is good faith but profound disagreement. The Institute for Local Self Government hopes this guide provides assistance for this journey. `an►' � r� ti b }t ' CHAPTER 1 : WHAT IS AN ETHICS CODE? L "The ultimate answer to ethical problems in government is honest people in a good ethical environment No web of statute or regulation, however intricately conceived, tail hope to deal with the myriad possible challenges to a [personl's integrity or his devotion to the public interest" John F. Kennedt; Message to Congress on April 27, 1961 CORE CONCEPT An ethics code is a framework for day-to-day actions and decision-making by officeholders and, depending on how the code is written, an entire agency. The fundamental premise of an ethics code is that it is easier for T T_ people to do the right thing when they know what it is.' '= Core Concept.........................._.....3 rTS ,44 ,yA�. Ethics Code Goals.........................3 4 ;d ETHICS CODE GOALS Values-Based Versus Rule-Based Codes 4 �jtli'F' J An agency usually has three goals for adopting an ethics code: : w Further Limits on 1. Encouraging high standards of behavior by public officials, Rule-Based Codes { 2. Increasing public confidence in the institutions that serve the public; and 3. Assisting public officials with decision-making.' As will be repeatedly emphasized throughout this guide. achieving these . ::r goals requires a well-conceived process for both adopting and implement- ;, ing the code. = r ,,jF•�s• =Lewis.Carol W., The Ethics Challenge in Puhlir Service:.4 Problem Solving Guide, Jossev-Bass Publishers: 1991.at 139. �✓ 'Zimmerntan.J.S.•"Ethics in Local Government;'Management Injormatinn Sen•ice Report 8, F{:+ �''• International CitvlCnunty Management Association.August 197A. t;r •ti .?7:Y L$:d 4 I CHAPTER l VALUES-BASED VERSUS RULE-BASED CODES There are two types of ethics codes. One emphasizes rules ("don'ts"). Such codes often parallel,if not duplicate,state laws relating to ethics.As will be discussed in more detail in the next section, California local officials are already subject to a complex set of ethics laws. The other kind of code emphasizes values and the kinds ofbehaviors that demonstrate those values.Such codes represent more a list of"do's"rather than "don'ts:'4 They are a commitment to uphold a standard of integrity and competence beyond that required by law' An ethics code thus creates a set of aspirations for behavior, based on values associated with public service held by public servants and the communities they serve. The process of adopting and reviewing an agency's ethics code enables agency officials to clarify these values and link them with standards of conduct. Ethics codes therefore complement ethics laws by going beyond the minimum ethical requirements established by ethics laws to define how public officials act when thev are at their best.6A values-based ethics code is a complement to ethics laws. An ethics code identifies those areas in which agency officials set their sights higher than the bare minimum requirements of the law. The values-based approach reflects the general distinction between the law and ethics. Fundamentally, "ethics" is obedience to the unenforceable.'Laws,of course,are enforceable—typically by those other than local agency officials. Obedience to the unenforceable requires self- regulation in light of ethical values.' ' Lewis, The Ethics Challenge in Puhlir.Service,at 143. Kazman,Jane G.and Bonczek.Stephen J.,F.rhics in action:Leader's Guide, International City/ County Management Association, 1999,at 97. °"rhe concept of ethics codes defining how local officials behave when they are"at their best" is a theme that runs throughout the City of Santa C'lara's ground-breaking code of ethics and values.The city developed the code with the help of Dr.Thomas Shanks of the Markkula Center for Applied Ethics at the University of Santa Clara. 'Early twentieth century English jurist John Fletcher Moulton,quoted in Kidder.Rushworth M., How Good People Make Tough Choices,Simon& Schuster: I995 at 66. 'Brousseau,Patricia L."Ethical Dilemmas: Right versus Right." in The Ethics Edge, International City/County Management Association: 1998.at 38. INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE 5 ON! ETHICS AND POLITIC.S In a state study of local ethics ordinances,the authors observed: Ethics and politics encourage different sets of behaviors. Ethics is concerned with moral duties and how a person should behave,while"all's fair in love,war and politics"seems to have its followers. During most of American history,enforcement of ethical standards has relied on public disclosure and an informed electorate.It is a rough,imperfect arrangement. Democracies are particularly reliant on public confidence to maintain their legitimacy.Declining public confidence in American govemmental institutions,as reflected in public opinion polls,is one important reason that government ethics standards have become such a concern... Questionable official behavior ranges along a continuum from bad judgment to unethical behavior to outright cormptlon.9 FURTHER LIMITS ON RULE-BASED CODES "Never create by law what can be accomplished by morality." — Charles-Louis de Secondat. Baran de Montesquieu, 17th118th-Century French jurist and political philosopher- In addition to the conceptual distinctions between ethics and the law described above, there are other reasons that this guide recommends a values-based approach. They are: • California already has a complex set of ethics laws governing local official conduct; and • It is unclear that rule-based systems achieve the goal of either encouraging ethical behavior or increasing public confidence. Values-based ethics codes are premised on the notion that adherence to ethics laws is not enouCD gh to instill public trust in governmental institutions and those who serve in government. `Sec Near Simmons.Charlene, Roland,Helen. Kelly-DeWitt.Jennifer,local Government Ethics Ordinances in California,California Research Bureau: March 1998 at 3. 6 CHAPTER 1 � l ETHICS LAWS IN CALIFORNIA Local officials already must comply with an extensive set of laws that govern the ethical aspects of public service.These laws cover such areas as: • Disclosure of personal economic interests; • Receipt of loans, gifts, travel payments and honoraria; • Campaign contributions; • Conflicts of interest; • Dual office-holding and incompatible offices; and • Criminal misconduct in office. There can be some benefit to supplementing these requirements at the local level—and there are gaps in the law. However, for many agencies, trying to adopt a comprehensive, rule-based ethics code will result in an overlay of two complex sets of laws. Moreover, trying to summarize existing state law(for example,with respect to conflicts of interest)risks creating inconsistencies.10 Put another way,an ethics code should not be viewed as a tutorial on the various laws relating to ethical conduct in office. ABOUT Familiarity with ethics laws is nonetheless important.The Institute for Local Self Government has prepared a summary of such laws called A local Official's Guide to Ethics Laws.The guide is available online for free at wwwAsgsg/trust; it is also available for purchase from the League of California Cities'CityBooks Service(916/658-8257).The Institute also makes an instructional video available for a modest fee. Moreover,there may be ways that local agencies can supplement the existing framework of state laws relating to ethics. Two areas,for example,are anti-nepotism policies and expense reimbursement policies. Materials relating to these types of local ethics laws are available from the Institute's website (wwwilsg.OrR/tnust). See wear Simmons et al.,focal Government Ethics Ordinances in Calijornia.at 41 (suggesting that these conflicts may mean that the state should reviews local ethics codes). INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE � 7 Do ETHICS Laws WORK? Do ethics laws improve public trust?Two scholars have concluded,in the context of the federal government at least, that the web of ethics laws have not increased public trust in federal government officials.II They propose "deregulating" ethics, in the legalistic sense of the term, and focusing instead on acquainting those new to public service with the values associated with being an ethical public servant." They also recommend focusing on the kinds of situations that can present ethical issues for public servants and how to deal with those situations." They also note that the law is"too blunt of an instrument"to assure proper behavior.14 They fault federal ethics policy for substituting formal regulations for the expectations of good conduct." Their quarrel is not with the goal of increasing governmental integrity;but in the means chosen to achieve that goal.16 They worry that law-based ethics policies are rooted in such a culture of distrust as to actually diminish public trust in government.I I They also worry that this culture of distrust in government risks creating a self-fulfilling prophecy in terms of the kinds of individuals that are attracted to public service." The Institute for Local Self Government believes that positive, values- based ethics codes can avoid many of these pitfalls. "Mackenzie,G.Calvin K Haflxn, Michael,Scandal Proof:Do Ethics Laws Alahe Government Ethical?.Brookings Institution Press: 2002 at 149-59. :Id.at 164. "Id. "Id. at 172. 5 Id. Id.at 174. Id. at 176. "Id. at 177. 8 I CHAPTER I BRIGHT IDEA : APPROACH IN CODES If compliance with laws.is-a salient ethics law issue in your jurisdiction,you can include a requirement in the agency's ethics code that commits-people to comply With the law. The.cities of Sunnyvale and Mountain View do this in their-otherwise value-based codes. ..Here is sample Language Based on those:'codes: Members will comply with the`laws of the nation,:the$tate of California and the jmsert agency name]in the performance of their Public duties.These laws include,but are note limited to:the United'States and California constitutions;the fimseri agency name]Chatter [i applicable];laws pertaining to conflicts of interest,election campaigns,financial disclosures,employer responsibilities and open processes of governme»rt;and:[`insert agency name]ordinances and.policies.19 The Institute for Local Self Government provides inst uctionai:reesources on ethics laws (see sidebar on page 6)10 City of Sunnyvale,Code of Ethics for Members of Sunnyvale City Council, Boards and Commissions,adopted June 27. 1995(section 2):City of A9ountain View.City Council Personal Code of Conduct.adopted November 2002(section 3.2.2)and available online at www.ilse.oreRrust. "'The lack of training available on ethics law was a criticism in the California Research Bureau report.See Local Government Ethics Ordinances in California.at 45 (suggesting that the Legislature mandate such training). t: 1 lry' { Y( ,�C v V CHAPTER 2 : MOTIVATIONS OPPORTUNITIES AND RISKS "Life is about not knowing, having to change, taking the moment and making the best of it, without knowing what's going to happen next. Delicious ambiguity." — Gilda Radnerr, Actress and comedienne MOTIVATIONS: THE GOOD, BAD AND UGLY As discussed earlier,goals that are likely to engender support for the code effort include: 0 Encouraging high standards of behavior by public officials; • Increasing public confidence in the institutions that serve the 4 public, and Motivations...................................9 • Assisting public officials with decision-making-=' } ' Opportunities ............».......... »....I1 •��y;i : , If the goal of ethics code proponents is to embarrass their political rivals ....................•»•.....................11vals (a goal that would not likely be acknowledged in any event), the concept . of an ethics code will be a non-starter. Such a goal will also tend to undermine public trust and confidence in the agency as opposed to building it. IIowever, if the discussion tends to be heading in a direction that suggests politics is becoming a factor, it can be useful to remind the discussion participants about the core goals in adopting an ethics code. ;': There can be other, more subtle goals for a code that can be equally valuable to consider. They include inspiring and encouraging the code's ``=`` .0, target audience to high principles of conduct. They can also include :` , capturing the spirit or ethos of the agency and/or attempting to define and protect its culture.`'- n w-: r t'=ts Zimmerman.1.S.."Gthics in Local Government:' "Sep•Ethics Resource Center,The Gthics Toolkit,available online at www.ethics.ore. ljjl�,'•I i, 10 CHAPTER 2 fir' J Being clear on goals is important, but so is being realistic about the time and effort it will take to achieve them.Adopting an ethics code will not, in and of itself, result in better ethical behavior. As Senator Adlai Stevenson observed when the United States Senate reviewed its code provisions in 1980:"If there are culprits in our midst,they are unlikely to be deterred by ethics codes:'2' The code is part of an overall effort to foster an ethical culture within the agency—one that will not support the activities of the "culprits"that may or may not be in our midst. As is wise before adopting any kind of policy,consider the pros and cons of taking action.Because the pros and cons will vary from one community to another, these are framed as opportunities and risks. "I never failed once. It just happened to be a 2000-step process." —Thomas Edison (19th/20th-century American inventor), responding to a reporter who asked how it felt to fail 2000 times before successfully inventing the light bulb There are going to be skeptics on your governing board,within the community and among the employees(if your agency's code will also apply to them). People may be concerned about an ethics code being used to criticize the agency unfairly..On divided boards,political rivals may think this is an effort to embarrass them or otherwise make them look bad before the public they serve.Employees may think that this is just the latest"flavor- of-the-month"management fad. The public may just think this is"window dressing" intended only to deflect criticism. The task of proponents of an ethics code is to prove the skeptics wrong.The theory of this guide is that one can do this by: • Charting a course of incremental change by first starting with an ethics code for the governing board;24 • Starting with a relatively few values on which everyone agrees and making a concerted effort with respect to those; • Demonstrating one's commitment to the code by not using the effort to embarrass rivals; and • Including implementation strategies—involving both individuals and the body as a whole— to convince the public and agency employees that the agency's commitment to the code is genuine. There will be setbacks,to be sure. The key is to learn from them and keep moving forward,with an eye on the long-term goals for the code.The successful implementation of an ethics code is a multiple year process that will span election cycles, budget crises,personnel changes and more. ='Lewis,The Erhics Challenge in Public b'ervice,at 143. =°See Blanchard,Ken&O*Connor. Michael.Managing By lblues,Barrett-Koehler Publishers: J 1997 at 60-62. 129(recommending that the success of the program requires an organization's ems' leaders to first work on themselves). INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE ll OPPORTUNITIES Fundamentally,the process of adopting an ethics code offers the following opportunities for a local agency: • An opportunity to create an environment in which ethical behavior is the norm and ethical considerations are routinely considered in evaluating alternative courses of action; • An opportunity to demonstrate a commitment to ethics; • An opportunity to establish priorities among competing values and identify those values that are particularly important in a community; • An opportunity for collective reflection and discussion on the values that ought to form the basis of a public official's behavior and decision-making; and • An opportunity to create a positive public identity for agency officials, which can lead to more public trust. Ethics codes can also serve as a guide or reminder for proper behavior and as a focal point for discussion of ethical challenges faced by public officials. The reason that these advantages are framed as "opportunities" is that, like so many things in life, whether an action achieves its full potential depends on how the action is accomplished.Achieving the advantages of adopting an ethics code requires good intentions and solid follow-through. RISKS Ethics codes adopted without good intentions and follow-through risk the following: • Ethics codes can diminish public trust in government if officials' behavior is at odds with the values expressed in the code— the public will perceive the code as mere "window dressing" • Ethics codes can be used as an instrument to embarrass political rivals—a concept known as "vigilante ethics" (see sidebar on page 12). 12 CHAPTER Z fir✓ • The sustained effort required to implement an ethics code can exceed the resources available within an agency. This is particularly so if an agency decides to undertake an organization- wide ethics effort during the initial consideration of the code. Local agencies also run the risk of adopting long and unwieldy codes out of a desire to demonstrate their commitment to ethics.This can diminish the code's ability to guide behavior and decision-making. In addition,agency critics and unhappy employees may seize on an ethics code as a focal point for criticism of particular agency action.The charge is that the agency is not complying with its code. Finally,it almost goes without saying that no ethics code—no matter how thoughtfully crafted — can provide all the answers to ethical dilemmas local officials may face. This is because ethical dilemmas typically are choices between competing sets of`fight"values.In his book,How Good People Make Tough Choices, Dr. Rushworth Kidder observes that it is easy for an ethical person to resolve"right versus wrong"choices. What is difficult is choosing between competing sets of"right"values.25 NIAGILANTE ETHICS There is an"unethical"use of ethics codes that needs to be acknowledged. This is when political opponents use ethics and the adoption of an ethics code as a means to embarrass or disadvantage political rivals.In The Ethics Challenge in Public Service, the author calls this"vigilante ethics" or the use of ethics to intimidate rather than inspire 26 The political use of ethics obviously gives ethics a bad name. It undermines the efforts of those who truly care about promoting the consideration of ethical values in public service. It also undermines one of the key goals of adopting an ethics code—which is to foster public trust in the institution as a whole, not just those who promote a code. In suggesting a process for adopting an ethics code and proposing a"menu"of possible topics for the code,this guide endeavors to minimize the opportunities for individuals to misuse the ethics code adoption process. Moreover, a values-based approach to codes is designed to focus on more universal principles of good behavior on which everyone should be able to agree.The process also is designed to allow everyone to contribute to the crafting of the agency's ethics code and demonstrate their commitment to values. 'S Kidder.Rushworth M..How Good People,Make Tough Choices.at 16-17. =^Lewis. The Ethics Challenge in Public Sen-ice,at 98. a-- 1, ta �y tl CHAPTER 3 • KEY DECISIONS IN THE 461 CODE ADOPTION PROCESS "Choose always the wav that seems the best, however rough it may be Custom will soon render it easy and agreeable." —Pythagoras "It's not hard to make decisions when you know what your values are." -Roy Disney "When you come to a fork in the road ...Take it. —Fogi Beira - Y To whom Should the Code Apply:' ................................13 TO WHOM SHOULD THE CODE APPLY? Who should Be Involved in the Code Adoption Process?._.......... 14r There are a number of possibilities: What Topics Should • Elected officials; Be Included. ..... 16 • Elected and appointed officials (for example members of boards what About Accountability?...... 17r t and commissions); 3 Suggested Iteractive Process for :,i4 • Elected officials. appointed officials and top level staff, or Adopting an Ethics Code ...........22 A Vote About the Importance • Only agency staff. g Y of Implementation strategies.....26 ,._s There may be some elements of the code that one would want the public to adhere to — for example, if the code contained provisions relatino to civility in public discourse. However, our recommendation is for local officials to first lead by example. This does not, of course, preclude officials from indicating that they have set certain standards for themselves 'iP and encourage others to do likewise. ,"WNW 7 �!. ,y 4t� 14 I CHAPTER 3 What this means in practice is for elected officials to first consider adopting a code that will govern their own behavior—and then make a demonstrated effort to conform their conduct to the code. This may be especially advisable if the agency has not had an ethics code in the past. This gives elected officials an opportunity to "walk the talk" and send a message that their commitment to ethics is indeed genuine.27 Then,as part of the ongoing review process,consider expanding the code 1,0P Aim) to apply to others' behavior. In part, this relates to the next aspect of an effective code adoption process, which is to consult with all of those whose behavior will be governed by the code. Because the process of adopting and implementing a code requires significant WHO SHOULD BE INVOLVED IN THE effort,adopt a code that first applies to the CODE ADOPTION PROCESS? governing body.This enables the governing The answer to this question is driven by the scope of the code.For members body to lead by example. of an organization to accept and be guided by the values reflected in an ethics It also streamlines the code,they need to be part of the process of crafting the code. adoption process. For example, if all agency officials (elected and appointed officials and staff)will be subject to the code,then representatives from all these groups should participate. One city manager whose city adopted a citywide code recommends that organization-wide participation occur early on. Otherwise, it is easier for those not engaged in the code-crafting process to feel that the code does not apply to them. Non-involvement can also foster suspicion about the code. Of course, launching an agency-wide discussion about ethics can be a daunting task. Another approach is to focus on getting an agency governing body to agree about what values should be included in the agency's"initial"ethics code.The word"initial"is in quotes because the concept is that the code will be a living document that will be reviewed and updated periodically. -'"Bosses Set Bar for Ethics. Experts Say."Cnntra Costa Times.June 9.2003 ("Ethics must come from the top"said Marshall Schminke,who teaches business ethics at the University of Central Florida and has written a book on the subject."A person's individual moral framework is only the third-most important factor in deciding what they'll do.The most important is what does their boss do: Workers look to their boss first for cues on what constitutes moral behavior.") INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE 15 Expanding the discussion in subsequent versions of the code to include appointed officials and/or top level staff and revising the code to reflect their input can be part of the review and update process. Expanding the discussion even further to include the input of all staff can round out the process and demonstrate the agency's conunitment to keeping the ethics code a living, breathing document. Moreover, the process of engagement—no matter how big or small the group — should not simply be one of having people review a proposed draft ethics code,possibly based on codes adopted by other local agency jurisdictions. Instead, use a "menu approach" in which participants are asked to select among competing values and expressions of those values. A sample "menu" from which to work is included in chapter 4 of this guide. Bottom-line: it is critical to the success of an ethics code that it responds to real-life situations. The code-adoption process should involve people in a meaningful way in a discussion of those situations. AN ALTERNATIVE Ai,-PROACH: STAFF IN THE CITV OF SAN BUENAVENTURA IN]TIATE A CODE FOR THEMSELVES In San Buenaventura,the staff initiated a process of adopting an ethics code that applied only to the city's 600-plus employees.The staff created an interdepartmental working group that developed the code.The group met every other Thursday, with everyone contributing to the final product.The preamble of the code is instructive: As City employees,these core ethical principles serve as a central guide for our everyday decisions, behaviors and actions at work_By applying these ethical principles, we hope each employee will make more effective decisions with greater confidence.28 The code goes on to list the values of respect, equitable treatment, impartiality, honesty,responsibility and trustworthiness.The code then explains what these values mean in the context of the staff's work The staff also created an ethical checklist to guide decision-making.21 City of San Buenaventura Ethical Principles.available online at wwnv.ilsk,,ore/trttst. =9 Examples of such a checklist are available online at ww-w.i1su,ortorust. 16 CHAPTER 3 WHAT TOPICS SHOULD BE INCLUDED? This,of course,is the$64,000 question.In How Good People Make Tough Choices, Dr. Rushworth Kidder identifies eight universal ethical values that transcend cultures."' He also believes that standards for ethical conduct do not vary by context.In other words,there is not a separate set of ethical values appropriate for business, another for the public sector and yet another for one's personal life. Of course, what can vary is how these values are applied in different contexts.For this reason,we recommend that public agencies develop the values portion of their ethics code in a three-part process: 1. Identification of core ethical values (for example, honesty, loyalty or compassion); 2. Discussion of what those values look like in the public service context, and 3. Examples of behavior reflecting/not reflecting those values. I Such a process will enable those involved in developing an agency's ethics code to fully engage in the discussion of what the agency's ethics code means. This approach is an adaptation of the one used by the Markkula Center for Applied Ethics and the City of Santa Clara to develop that city's code of ethics and values. In this way, the code almost writes itself.This is why this guide provides a "menu" of examples of potential values that an agency may want to reflect in its ethics code, along with sample expressions of what those values mean in practice (see chapter 4). Admittedly,at least three of the values("conununity service;'"proper use of public resources" and "vision") potentially have a more unique relevance to ethical aspects of public service. Inclusion of these values is based on the Institute's research on what values are commonly reflected in cutting-edge ethics codes. Of course, other values could be included based on what is important in a particular community/agency. '�'Kidder.How Gnnd People:flake Touch Choices.at 91-92. INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE 17 0" R -SIST TUIE UNIPULSE TO BE Too COiMPIZEUENSIVE In their enthusiasm for fostering a completely ethical environment in their agency,officials may be tempted to include all the values that are important to all officials in an agency's ethics code. Officials may be loathe to exclude any value—or expressions of what that value means in practice—out of a concern that the omission of a particular value means that the agency condones the opposite behavior. Such an impulse can also be the product of a desire to obtain buy-in from all whose conduct will be guided by the code. These are natural inclinations.However,in crafting a code,officials maywant to evaluate whether a too-comprehensive approach diminishes the utility of the code.A too-long or too-complex code is difficult to remember and apply. This undermines the objective of creating a code that provides a bona fide source of guidance for agency officials. "Keep your code understandable,"cautions Mountain View Mayor Michael Kasperzak. An alternative approach is to identify priority values,particularly for agencies adopting ethics codes for the first time:Three can be a good number in terms of ease of recall. If the agency focuses its attention on pursuing those values for the coming year,it can identify additional or alternative priority values as part of an annual review of its code. Ethics codes are living, growing documents—not one-shot efforts,and it is not necessary to include every possible ethical value in the fast code. \-Moll WHAT ABOUT ACCOUNTABILITY? What happens when someone disregards the values expressed in an agency's ethics code? This question comes up all the time, with the underlying question being"what is the point of having an ethics code if we are not going to enforce it?" As it relates to elected official's behavior, the voters are the ultimate enforcers of the code. This is why it is so important that the code reflect community values. There are various ways to think about the accountability and enforcement issue. SELF ENFORCEMENT A values-based ethics code,like the kind of code suggested in this guide, truly does require "obedience to the unenforceable:' as discussed in chapter 1. This is particularly true for elected officials, inasmuch as our democratic system contemplates that the voters are the ultimate judges of whether an official's behavior is consistent with the community's values. This is why it is important to involve the community, as the ultimate stakeholder in the agency,in the process of developing an agency's ethics 18 CHAPTER 3 code. It is also why this guide recommends that the agency consider mechanisms for soliciting public input on the ethics code as a threshold matter (see "step 1"on page 22) in the code adoption process. Some local agencies' ethics codes expressly acknowledge this phenom- enon. Sample language is as follows: This code of ethics expresses the standards of ethical conduct expected for members of the agency governing board [include any other affected individuals]. Members themselves have the primary responsibility to assure that ethical standards are understood and met and that the public can continue to have full confidence in the integrity of its government" As an additional measure of accountability, some agencies 1) include ethical standards in their candidate orientations (including boards and commissions), and 2) ask new members to sign the agency ethics code upon entering office." THE POWER OF DISCUSSION AND PERSUASION An ethics code is a set of agreed-upon values and behaviors that flow from those values. Officials can engage in honest but diplomatic discussion about whether a particular course of action is consistent with the agency's adopted ethics code. The most constructive and productive way to initiate such a discussion is to frame the issue as a question (.see e-ample on page 19). ".Sec, e.g.,City of Sunnyvale.Code of Ethics,Section 18; Ciry of Mountain View.City Council Personal Code of Conduct(section 20)and available online at www.ilse.orartnist. "Sec, e.g. Sunnyvale,Code of Ethics,Section 17; Mountain View,Section 19,and available online at a ww.ilsL.orgarust. INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE 19 MAKING THE CODE REAL: EXA-NIPLE It has been a lengthy boani of supervisors meeting and there are still a number of items on the agenda to go. The chairperson, in a somewhat irritated fashion, suggests that testimony be cut off on the current agenda item. You are concerned about the people who made a special trip to the meeting to speak: You say: I am concerned that, if we cut off testimony at this point, we will be acting inconsistently with our ethics code that says we value and respect public input. The chair replies: I am troubled by that too.But 1 asked people who wanted to test on this item not to repeat points that have already been made and the testimony is getting repetitive. I also feel I have an obligation to respect the interests of those who are here waiting to testify on other agenda items that we have not yet been able to get to. It s getting late and I know a number of them need to get home to their families. You say: I understand your concerns. How about if we ark if anyone has anything new to add before we cut off testimony? We could also ask that people be especially brief in consideration of those who are waiting to speak on other agenda items and the length of time we have already spent on this item. The chair replies: Okay. Does anyone who hasn't alreadv spoken have anything to share that hasn't been covered already? We ask you to be brief and considerate of others who also want to participate in later parts of the agenda. This kind of conversation, tied into the values in the county's ethics code, has reached a compromise resolution of whether to cut off testimony. It has also had the collateral effect of sensitizing the public to the impacts of their (potentially repetitive and long-winded) behavior on others like them. 20 I CHAPTER 3 The ethics code provides a starting point for good faith conrversation on how to resolve concerns or issues. By contrast, imagine how the conversation in the example would have gone if you had simply asserted that the chair's proposal to cut off discussion was "unethical" because it violated the county's value of respect for public input.Imagine not only the defensive and angry answer the chair would have been likely to give, but also what impression this kind of exchange would have had on the audience. Thus,the key, as one ethics expert advises, is to"condemn the sin, not the sinners33 The suggested approach requires thought and a certain degree of self- restraint (particularly if your energy level is also sagging after a long meeting)than simply accusing someone of acting inconsistently with the ethics code. Investing in such effort is part of your own personal commitment to the ethics code and having it make a positive difference for your agency. This is another opportunity to lead by example. REPROVAL OR CENSURE / Some agencies provide enforcement measures in their policies. For example, the City of La Mesa's policy reads as follows: Violations and Penalties.Any violation of this Ethics Policy by a member of the City Council shall constitute official misconduct if determined by an affinnative vote of three members of the City Council in an open and public meeting.In addition to any criminal or civil penalties provided by Federal, State or local law, any violation of this Ethics Policy shall constitute a cause for censure by City Council adoption of a Resolution of Censure.3't !'Hanson, Kirk 0.."Confronting Unethical Conduct;'.4ssoriation Management(January.2003). ' City of La Mesa.City of La Mesa Ethics Policy,adopted March 2003(section 7)and available online at w,.wv.ilse.nrg/trust. INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE � 21 Similarly, San Jose has a censure policy that defines "censure' as a punitive action that carves no fine or suspension ofthe rights of the council member as an elected official.Under the policy, censure is distinguished from "condemnation" of a council member's actions, which expresses strong disapproval but is not punitive. The policy sets out detailed procedures to provide the accused council member with an opportunity to understand and respond to the criticisms against him or her.35 When considering these kinds of enforcement policies,be sure to consult with one's agency attorney about relevant legal considerations." BRIGHT The"Character First!a"program developed by the nonprofit Character Training Institute emphasizes positive reinforcement or praise in its promotion of character issues."It notes that there are three steps associated with offering praise: 1. Give the definition of the character quality; 2. Offer a specific illustration of how it was demonstrated;and 3. Explain the benefit to you and/or others. This approach to positive reinforcement is another way agency officials can make ethics code provisions real. .15 City of San Jose.Censure Policy,November 1994 and available online at ww,%vjIse.ore/trust. '1 This topic was covered at the 1995 City Attorneys Spring Conference.where James P.Jackson delivered a paper entitled"Coping with Infra-Council Conflicts"Copies are available from the League of California Cities'library ovi w.cacities.ore).but should he reviewed for updates in \� the law. "Character First! materials are available through www.characterf rst.com. 22 CHAPTER 3 SUGGESTED ITERATIVE PROCESS FOR ADOPTING AN ETHICS CODE This process can be adapted to successive governing board meetings or meetings with management and staff. Depending on the time available for the code adoption effort, some steps can be combined. STEP _ STEP _; STEP I st Meeting 2nd Meeting Ad Meeting • Introduce the concept of 0 Review values menu Achieve consensus an ethics code (see chapter 4) on expressions of the various values, as well / • Would a code be useful? Each participant as examples of those identifies the top values in practice • To whom would the four values code apply? Discuss potential • Identify areas of memorable titles • Identify public input consensus mechanisms Consider a preamble • Reflect on these See chapters 1-3 "consensus" values 0 Discuss implementation between now and strategies next meeting • Commit to review • Identify three on anniversary expressions of those values See chapter 4 • Identify positive examples of values in practice See chapter 4 INSTITUTE for LOCAL SELF GOVERNMENT DEVELOPING A LOCAL AGENCY ETHICS CODE 23 STEP ti STEP = STEP (8 months from adoption) (Anniversary of adoption) • Implement 0 Review code and its 0 Celebrate successes Implement implementation Implement 0 Identify areas needing • Initiate process for further effort See chapter S updating and expanding application of the code Adopt updated and to others (repeating expanded code steps one through rw: , three with them) 0 Adopt updated and expanded implementation strategies r� STEP t • Repeat steps 4-6 24 CHAPTER 3 Step One (First Meeting) • Introduce the concept of an ethics code —what it is,what it can and cannot achieve and the process of adopting one. • Discuss whether agency officials think a code would be useful. • Determine to whom the agency's first code should apply. • Identify the mechanisms by which public input in this process will be solicited. Step Two (Second Meeting) • Review the values menu (see chapter 4). • Determine whether agency wants to focus on a limited number of key values (as we recommend) or have a more comprehensive approach. • Ask participants whether there are any key values missing from the menu. • Ask participants to identify the top four values that they think are most important in their public service. • Identify areas of agreement on values and confirm these with the group. • Ask participants to reflect on these "consensus" values before the next meeting, identifying three expressions of those values that seem most useful for the agency to focus on. Remind the group that they can add or modify expressions of values listed on the menu. Also ask them to identify positive examples of the expressions of values in practice. INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE 25 Step Three (Third Meeting) • After preliminary discussion, use the"dot" or similar process to achieve consensus on the expressions of the various values, as well as examples of those values in practice (see sidebar below). • Direct staff to write code up based on the areas of consensus about 1)which values should be in the first version of the code, 2) what expressions of those values also should be in the code, and 3) examples of those values. • Discuss potential memorable titleS38 (for example, "'The Way We Serve the Public" " [inset;'agency name]' Commitment to Character") for the code. Consider whether the code would be enhanced by a preamble that refers to the public agency's goals and commitments in adopting an ethics code. (For a sample, see chapter 4) • Discuss implementation strategies and timelines (see chapter S). BRIGHT IDEA : USE ADHESIN`E Dors A handy and fairly expeditious way of handling this selection process is to combine discussion with a"dot"system in which participants are asked to identify their four top values by adhering adhesive dots to a board displaying the list of potential values. Include a prohibition against individuals"power-dotting,"or placing multiple dots by one value. }°See Ethics Resource Center,The Ethics Toolkit,available online at www,gihics.ore. 26 ! CHAPTER 3 Step Four(Next Meeting) • Adopt final version of the code. Step Five (Ensuing Year) • Implement, implement, implement! (see chapter S). Step Six (Eight Months from Code Adoption) • Review code and its implementation. • Initiate process for updating and expanding application of the code to others, if appropriate (repeating steps one through three with them). Step Seven (One Year Anniversary) • Celebrate successes. • Identify areas needing further effort. • Adopt updated and expanded code. • Adopt updated and expanded implementation strategies. Step Eight (Second Year Anniversary and Thereafter) • Repeat steps four through six. A NOTE ABOUT THE IMPORTANCE OF IMPLEMENTATION STRATEGIES As the iterative suggested process suggests,adoption of the code is only the first step. To make a difference and achieve its goals, the code needs an implementation strategy. Making a commitment to implement one's ethics code is also a "key decision" in the code adoption process — as is actually implementing the code. Chapter 5 covers the topic of implementation in more detail. } 44 c-_.. L}. yf i C 1— 1 CHAPTER4: ETHICS CODE MENU _f a "It is strangely absurd to suppose that a million of human beings, collected together, are not under the same moral laws which bind each of them separately." — Tlron:crs Jefferson WHOSE VALUES? Whenever one proposes that local officials engage in a conversation about values there is some likelihood that would-be participants in the discussion will take offense and view this as an effort to"impose"one group's values on another. An unwillingness to stand up for values, according to Dr. Rushworth Kidder, has created a sort of"moral relativism"that causes us I`�R to sink to the lowest common denominator in terms of ethical conduct.31 Whose Values?.............................27 Dr. Kidder has dissected this phenomenon and concludes that there is a Values Selection Process.............28 core set of human values that transcend cultural, socioeconomic and national boundaries.40 These values are: Ethics Code Menu) Nvorkshect....................................30 • Flonesty; ' Y Preambles ....................................41 _ r • Fairness; r • Respect; • Compassion; and �t • Responsibility 4;5 Many of the ethical dilemmas that local officials face can be characterized '£;.,`„ as conflicts between two "right" values. An example is the discomfort " that one feels when a friend or political supporter seeks approval for a project that may not be in the best interests of the entire community.This is a conflict between one's loyalty to a friend or supporter and one's obligations as a public official to act in the community's best interests. t Kidder,Hots Good People A4ake Trough Choices,at 96(referring to research by Stace.Walter I. fL The Concept of Aloruls.The MacMillan Cumpany: 1937),See also The Ethics Edge.at 37-38. "See Kidder.Hain Good People.41ake Tough Choices,at 77-108. i e { 28 CHAPTER 4 One advantage of adopting an ethics code is that it offers the opportunity for local officials to have a conversation about which values take precedence over other values in that community. VALUES SELECTION PROCESS Selecting which values will be reflected in your agency's ethics code is a key task. The following worksheet is designed to assist with this undertaking by identifying core ethical values and how each value should shape behavior. The suggested process for using this worksheet(also described at the end of chapter 3) is to: • Review the values menu. • Determine whether the agency wants to focus on a limited number of key values or have a more comprehensive approach. • Ask participants whether there are any key values missing from the menu. • Ask participants to identify the top four values that they think are most important in their public service. • Identify areas of consensus and check with the group to make sure the result reflects their sense of consensus. For example, it may be that there is a strong degree of consensus on only three values; conversely, there may be a strong degree of consensus on five values. • Ask participants to reflect on these "consensus" values before the next meeting, identifying three expressions of those values that seem most useful for the agency to focus on. Remind the group that they can add or modify expressions of values listed on the menu.Also ask them to identify positive expressions of mlues in practice. • After preliminary discussion, use the "dot' or similar process to achieve consensus on the expressions of the various values, as well as examples of those values in practice. INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE 29 We suggest that these processes occur over multiple meetings, so participants have an opportunity to reflect on the values that are most important to your agency and how those values are best expressed in terms of behavioral practices. "To make the code of conduct work, there must be consensus;" says Sunnyvale council member Jack Walker, who chaired the subcommittee that drafted Sunnyvale's Code of Conduct for Elected Officials. Note that the worksheet does not contain suggested examples.This is to assure that those using the worksheet truly contribute their own insights to the process —something that is necessary to make the code adoption process reflect the specifics of a given agency. Here, though, is an illustration of three values, expressions and examples,to help prime the discussion pump. Illustration of Three Values, Expressions and Examples Core Value Poteiitial Expressiom/ Examples of NN'Then I NN'liat This Value Looks Like ThisIssue Arises Community Service/ I do not accept gifts, services When someone invites me to Pursuit of public's or other special considerations dinner because of my position, interests as opposed to because of my public position. I will either decline or pay for personal interests my part of the meal. Respect for fellow I treat my fellow officials, During meetings,I will listen officials, staff and staff and the public with actively, attentively and politely the public courtesy and civility, even to all speakers, even those that when we disagree on what is are arguing against the position best for the community. I believe is right. Vision I consider the broader regional When I sit on regional boards as and statewide implications of the a representative of my agency, agency's decisions and issues. I balance what will serve my jurisdiction's interests best against what will maximize benefits for those served by the `•+' regional board as a whole. 30 I CHAPTER 4 ETHICS CODE MENU/WORKSHEET INSTRUCTIONS TO USERS : 1) Review values menu. Are any valares that are important to public service missing? A �, , 2) Mark the bo_x next to the four values you think are - - most important jor public service. The group will have a discussion on which values belong in the agency's code. 3)Y For the "consensus" values, review "expressions) � 1 column. Are an}- values that are important to -'"S1i-nY�saurT public service missing? 4) Mark the box next to the three impressions of each vahre you think are most important for your jurisdiction. The group will have a discussion on which expressions belong in the agency's code. 4 5) Write-in positive examples of this kind of behavior in action. INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE ( 31 ETHICS CODE MENU/WORKSHEET, CONT. values are inost important? Which fout ❑ Integrity/Honesty 0 Community service/pursuit of public's interests as opposed to personal interests/responsibilities ❑ Fairness ❑ Respect for fellow officials, staff and the public ❑ Compassion ❑ Proper efficient use of public resources (another form of responsibility) ❑ Loyalty to the Agency ❑ Vision 32 CHAPTER 4 ETHICS CODE MENUMORKSHEET, CONT. Which three Pxpressions Write in positive examples of when . are most important? the three checked issues arises ❑ I am honest with my fellow elected: officials, the public and others. ❑ I do not promise what I believe to be unrealistic. ❑ I am prepared to make unpopular decisions when my sense of the public's best interests requires it. ❑ I take responsibility for my actions, even when it is uncomfortable to do so. ❑ I credit others'contributions to moving our community's interests forward. I do not knowingly use false or inaccurate information to support my position or views. ❑ I do not leave false impressions. ❑ I support ethics within my agency. ❑ I disclose suspected instances of corruption to the appropriate authorities. INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY" ETHICS CODE I 33 i ETHICS CODE MENUMORKSHEET, CONT. Community service/pursuit of public's interests as opposed to personal interests/responsibilities Which three etpressions ia, Write in positive examples of when are most important? the three checked issues arise- ❑''`I do not accept gifts, services or other special considerations because of my public position ❑ I refrain from any action that might appear to compromise my independent judgment- El I support merit-based processes for the award of public employment and public contracts. ❑ I excuse myself from participating in decisions when my or my family's financial interests may be affected by my agency's actions. ❑ I do not use information that I acquire in my public capacity for personal advantage. ❑ Consistent with my role as a steward of the public trust, I do not represent third parties' interest before either my agency or those of neighboring jurisdictions. ❑ I do not accept gifts, services or other special considerations because of my public position. 34 CHAPTER 4 ETHICS CODE MENU/WORKSHEET, CONT. x rs Which three expressions a Write in positive examples of when ---`' are most important? the three checked issues arises ❑ I support the public's right to know and participate in the conduct of the public's business. ❑ 1 am impartial when making decisions, avoiding the temptation to favor those who have supported me and disfavor those who have not. ❑ I promote non-discrimination in public agency decisionmaking. ❑ I recognize that I am an agent for the democratic process,not the owner of authority. ❑ I provide services at or above established standards without favoritism or prejudice. ❑ I will promote meaningful public involvement in the agency's decision-malting processes. ❑ I treat all persons,claims and transactions in a fair and equitable manner. ❑ If I receive substantive information that is relevant to a matterunder consideration from sources outside the public decision- making process,I publicly shave it with my fellow governing board members and staff. I make decisions based on the merits of the issue. INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE I 35 ETHICS CODE MENU/WORKSHEET, CONT. Respect for felloNv officials, staff and the public Which three expressions write in positive examples of when are most important? ® the three checked issues arises ❑ I treat my fellow officials,staff and the public with patience,courtesy and civility, even when we disagree on what is best for the community. ❑ I focus on the merits in discussions of issues,not personalities,character or motivations. �.d ❑ I respect others'time by coming to meetings prepared and offering observations only when I believe it will move the discussion forward. ❑ I work towards consensus building and gain value from diverse opinions. ❑ I make decisions and recommendations based upon research and facts,taking into consideration short and long-term goals. ❑ I respect the distinction between the role of office holder and staff. ❑ I follow through on my commitments, keeping others informed,and responding in a timely fashion. ❑ I am approachable,open-minded and willing to participate in dialog and I work to convey this to others. `..� (continued on next page) 36 I CHAPTER 4 ETHICS CODE MENU/WORKSHEET, CONT. Respect for feliow officials, staff and the public, continued M%ich three expressions a Write in positive.examples of when are most important?_ the three checked issues arise. ❑ I engage in effective two-way communi- cationby listening carefully,asking questions,and determining an appropriate response that adds value to conversations. ❑ In my interactions with constituents,I am interested,engaged,and responsive. ❑ I involve staff in meetings with individuals, those with business before the agency, officials from other agencies and legislators to ensure proper staff support and to keep staff informed. ❑ I support a positive work environment for agency staff and others who serve the agency. ❑ When campaigning,I avoid personal attacks on issues unrelated to my fellow candidates'ability to discharge the duties of the office that we both seek. INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE 37 ETHICS CODE MENUMORKSHEET, CONT. Compassion Which three expressions. Write in positive exampks of when are most important? ® the three checked issues arise. ❑ I recognize government's responsibilities to society's less fortunate. 0 .I am sensitive to the fact that some people in the community are intimidated by public officials and public agencies and try to make their �..✓ interactions with our agency as stress-free as possible. ❑ I convey the agency's care for and commitment to its community members. ❑ I am attuned to, and care about,the needs and issues of citizens,public officials and agency workers. 38 CHAPTER 4 ETHICS CODE MENUMORKSHEET, CONT. Proper/efficient use of' public resources (another fol-111 of' responsibility) Which three expressions Write in positive examples of when are most important? the three checked issues arise. ❑ I recognize that the responsibility for making both large and small decisions about the use of public resources is a public trust. ❑ I actively promote the efficient and economical use of public resources. ❑ I do not use public resources, such as agency staff time, equipment, supplies or facilities, for private gain or personal purposes. ❑ I make decisions after prudent consder- ation of their financial impact, taking into account the long-term financial needs of the agency,especially its financial stability. ❑ I make decisions on hiring and contracting based on merit and value to the agency,rather than favoritism and/or family or personal relationships. ❑ I demonstrate concern for the proper use of agency assets (such as personnel, time, property, equipment, funds) and follow established procedures. ❑ 1 provide friendly, receptive, courteous service to everyone. ❑ 1 make good financial decisions that seek to preserve programs and senices for agency i residents. INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE I 39 ETHICS CODE MENUMORKSHEET, CONT. Loyally to the Agency Which three expressions Write in positive examples of when are most important? ® the three checked issues arise 0, ,I respect the confidentiality of information concerning the agency's property, personnel or affairs. ❑ I do not disclose confidential information without proper legal authorization. 11..E 13 I represent the official policies or positions of the agency to the best of my ability when authorized to do so. ❑ When presenting my individual opinions and positions, I explicitly state that my opinions do not represent the agency's position and I will not allow the inference that they do. 40 I CHAPTER 4 ETHICS CODE MENUMORKSHEET, CONT. 7,rz Which three expressions Write in positive examples of when t are most important? ® the three checked issues arise. ❑ 1 exhibit a proactive, innovative approach to setting goals and conducting the agency's business. ❑ I display a style that maintains consistent standards,but is also sensitive to the need for compromise,"thinking outside the box,"and improving existing paradigms when necessary. ❑ 1 promote intelligent and thoughtful innovation in order to forward the agency's policy agenda and agency services. ❑ I consider the broader regional and statewide implications of the agency's decisions and issues. NSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE 41 Once the areas of consensus around values, expressions of values and examples are identified, staff can be directed to write up the code based on the menu selections for final adoption at the next meeting. The code will contain the four values the agency has selected, the three expressions of those values and three examples of the expressions in action. PREAMBLES A preamble is the introduction to the code. It addresses these questions: • Why is the code important? • What is the code's purpose? BRIGHT IDEA : PROVISIONSOTHER USEFUL CODE Two other code provisions to consider are: • A requirement that affected officials sign the code; and • An annual rmuew. Such provisions make the commitment more public and more formal. Here is sample language for each,based on the provisions of Sunnyvale's code,which are included in an "implementation"section41: Members entering office will sign a statement affinning that they have read and understood this code. This code will be annually reviewed.The [insert governing board name]shall consider recommendations for updating the code as necessary. ".See City of Sunnyvale,Code of I',thics,Section 17. 42 I CHAPTER 4 • To whom does the code apply? • What will happen as a result of this code? Here is sample preamble language: The effective operation of democratic institutions requires that public officials enjoy the trust and confidence of the individuals and businesses they serve.Accordingly,[insert agency name]has adopted this code to: 1. Encourage the highest standards of behavior by [insert agency name] officials; 2. Promote and maintain the public's trust and confidence in [insert agency name]; and 3. Provide an ongoing source of guidance to [insert agency name] officials in their day-to-day service to [insert agency name]. To this end,the[insert agencygoverning body name]has adopted this code of ethics for[describe whose conduct will be governed by the code,for example, governing bodv members, members of boards and commissions, and/or stq#].As part of their service to [inser7 agency name.],these individuals agree to understand how this code applies to them and practice the values in the code in their day-to-day service to [inser7 agency name]. t � y CHAPTER 5' IMPLEMENTATION ISSUES "Genuine success does not come from proclaiming our values, but from consistently putting them into daily action." — Ken Blanchard and Michael O'Connor; Managing By Values MAKING THE CODE REAL: IMPLEMENTATION STRATEGIES Adoption of the code is only the first step. To make a difference and to achieve its goals,the code needs an implementation strategy. Some of the questions to ask when designing an implementation strategy include: • How should the code be disseminated? Can it be put on N. bookmarks, plaques, pocket cards, posters, the agency's website, IN ;4-1-1� etc.? Should there be a media release? Making the Code Real: t4 '?^•'r Are there elements that are useful to review at certain points in the Implementation Strategies.. 43 r conduct of the agency's business? (For example, one northern "Self First................... ........45 # California city renvnds itself of its civility values at each meeting.) Creating a Culture L • Is a leadership letter appropriate? (see sidebar on page 45) of Recognition • To ensure the future relevance and validity of the code, how Recruit with Ethics in Mind......50 can the provisions of the code be incorporated into orientation Training ......................................50 programs and other agency training efforts'? _ The Importance of an • Should the code be translated into all major community Annual Review 51 languages? a Promoting the Code #5` : Within the Cummunity...............52 • If the agency begins its meetings with non-sectarian invocations;'= f; do such invocations offer an opportunity to obtain others' A Special Note About ;`► assistance in reflccting on ' u on one or more of the agency's Ethics Codes and Campaigns....52 P g core values? 'Sectarian"invocations have recently been ruled unconstitutional.See Rubin r. Ciry of Burbank, ;;; 101 Cal.App.41h 1194, 124 Cal. Rptr. 2d 8b7(2002).rcv. denied. Dec. 18,2002.cent.denicd. U.S._(2003).Asking that an invocation focus on one of the agency's core value may be �► one way of complying with the court's decision. For more analvsis of the decision,see the article .K ' sx at page 8 of the July 2003 issue of Risrern Cin,magazine, also available online at t www.westc me i tv.corn. k i=.56 ,j` 44 CHAPTER 5 • To the extent that the code applies to employees, how can ethical considerations be incorporated into the hiring and evaluation process? • If the code applies to employees, should the code be attached to the offer of employment provided new employees? • Should copies of the code be sent to those who do business with the agency, along with a request to be notified if the agency fails to observe any of the values? • What resources can the agency make available to those whose conduct is the subject of the code? Peer counseling? "Dear Abby" type questions in the employee newsletter? Web-based resources? • What steps can individuals and the agency take to create a "culture of recognition" surrounding the agency's ethics code? • During election season, would it be helpful to have a community forum about how the city's values and ethics code translate into ethical campaign practices? • When should the code be reviewed? Another useful implementation strategy to consider is an evaluation component.How has the ethics code been used?Has it affected the ethical t culture of the organization? If so, in what ways? if not, what have been the impediments? How can the impediments be overcome? Surveys and interviews can help in such evaluations. t INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE 45 BRIGHT IDEA : Leadership letters are another implementation strategy to consider.43 A leadership letter is a communication from the relevant agency leadership that explains the code and demonstrates commitment from the top to create an ethical organizational culture.A leadership letter from all governing board members reinforces the role of the code as an ethics pledgeAt is another opportunity forr each member of the goveming body to affirm his or her support for the code and encourage others to do likewise. A leadership,letter can convey why the agency'has adopted an ethics code and why it focused on the values"it did. It should also.address how the code came to be and the process behind it. To summarize, some questions to consider in drafting a leadership letter include: • Why a code?Why now? • What is the ethical context in which the organization operates? • What are some of the challenges that elected and appointed officials,management,employees and members face, and how can this ethics code be a helpful document for people at all levels? • What are the major trends fading similar local agencies that will impact and affect the code and its implementation? �••'� • Might this code set an example for other local agencies? In some cases,it may be advisable to refer to an agency's past ethical problems,particularly if they are well known. This can be opportunity to be straightforward about the reason for the code. "SELF FIRST" "You must be the change you wish to see in the world" —Mahatma Gandhi "Few things are harder to put up with than the annoyance of a good e.Yample-" —Mark Twain, Pudd'nhead THIson (1893) There seems to be a consensus—if an official earnestly desires others to act differently,that official has to act differently.This concept is expressed as the "self first" rule in the management book called Managing By Values." Even if you feel you are not "the problem" at your agency, demonstrably modify your behaviors to reflect the values expressed by your agency's ethics code.As ethicist Michael Josephson observes,ethics is such that"we don't have to be sick to get better."45 "tiee Ethics Resource Center.The Ethics'l'oolkit,available online at www.ethics.ore. Blanchard&O'Connor.Managing Br 6blues,at 61. For more about Michael Josephson's work,visit wa-s:iosephsoninstitute.ore. 46 CHAPTER 5 What steps can an official take to promote awareness of ethical values within his or her agency? One is an effort to explain the official's decisions, large and small, in terms of the values in the agency's code. NIAKING THE CODE REAL: EXAMPLE It has been:a long and tense city council meeting. Before the council is a controversial affordable housingproject that the local neighborhood passionately opposes.You feel that some council-members are pandering to that opposition,particularly since they know that the city is at serious risk-for a lawsuit by affordable housing advocates if the project is turned down. In explaining your decision to vote in favor of the project,you say. "This is a terribly dicult decision. Accordingly, 1 consulted our city's values code. Although I deeply respect the depth of the neighbors'concerns about the potential impact of this development and have listened carefully to the views expressed,)also have committed to be a prudentsteward ofthepublic's resources. The law gives the developer the right to build this project and my view is that it would not be a wise use ofour limited public resources to get involved in a lawsuit over this project. There also is a fairness issue, which is that our teachers, our police officers, our food service workers and our young people just starting out ought to be able to purchase a home in our community. Accordingly, I am going to vote "yes"on this project and then commit to work very hard with the developer and city staff to minimize the likelihood that this project will.have the adverse impacts the neighbors fear. I know this is not the politically popular decision to make, but it is the decision IfeelI must make ethical)}; based on all the information before me. Then, of'course,you mustfollow through on this commitment to work with the developer and staff(possibly by setting up a consultative process with the neighborhood group) to address the concerns about impacts(demonstrating the ethical value offollowing-through on your commitments). In this case, you are "talking-the-walk" of ethical values by explaining your decision in terms of those values. Will the project opponents stand up and cheer your decision? Probably not. But that is fundamentally what ethics is, which is making difficult decisions when there may be a personal cost to you. INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE 47 far✓ CREATING A CULTURE OF RECOGNITION Some governing boards are lucky. Their members get along, treat each other with respect and work through disagreements based on the mutual understanding that everyone has the community's best interests at heart. Other governing boards are beset with animosity, in which meetings degenerate into personal jibes and attacks. Although your close supporters may be encouraging you to act on your gladiator instincts and come out swinging at every meeting, consider whether such a strategy is really promoting confidence in your agency by the public as a whole. Polling data suggests that the public really does want public officials to work together to solve the agency's problems and is growing tired of the politics of the personal attack.16 Employing the "self-first" approach, think about how you can acknowl- edge the ways your colleagues apply the values in your agency's code. Such acknowledgement can be as simple as privately complimenting someone for the restraint and respect they showed during a particularly �../ contentious discussion. 'e•This statement is based on polling relating m campaign practices.That polling shows,for example: • 86%of poll respondents believe unfair attack campaigning is unethical • 81%of poll respondents believe attack-oriented campaigning is undermining and damaging our democracy • 76%of poll respondents think negative campaigning produces less ethical and trustworthy leaders 82%of poll respondents think negative campaigning makes people less likely to vote • 88%of poll respondents think candidates should agree not to make any personal attacks • 7 1%of poll respondents think their elected officials have a different set of values than they do • 53%of poll respondents think that most elected officials don't know right from wrong • Only 42%of poll respondents trust the government to do what is right • 559,,of poll respondents believe that all or most candidates twist the truth to get elected Source:Institute for Global Ethics hipartisun surrey, conducted by Lake, Snell. Perry& Associates. Inc.and Deardoupyl=The Afedia Opmpany. Respondents were asked in June 002 about their attitudes concerning candidates and campaigns. View the frdl poll at wwir,camnai encnnduct.ore. Statewide surveys conducted by the Public Poliev Institute of California in 1998 found that 44% of Californians considered elected officials to be untrustworthy.However,when asked which level of government is best at solving their problems,people had more confidence in city(27`3,G)and state government(26%)than in the federal(20%)or county government(18%).See Baldassare, �.r✓ Mark,California in the Neu•Afillenium, University of California Press/Public Policy Institute of California.2000.at 44-45. 48 I CHAPTER 5 Review your agency's ethics codes and try to identify which values each ofyour colleagues follow most strongly and then watch for ways that they act on that value. It may or may not be appropriate to recognize such efforts publicly(you don't want to appear patronizing),but being alert to such issues will give you a fuller appreciation of the qualities that individual brings to the board. If your ethics code applies to boards and commissions and/or staff, talk with your management team about ways to further reinforce a culture of recognition with respect to the ethics code. In Managing B), Values, the authors describe situations in which companies recognize "success stories" in which an employee's behavior has exemplified a particular value." Some companies offer certificates; others have a"Wall of Fame" in which employees'good works are recognized.Whatever makes sense for your jurisdiction, think about ways to recognize and reinforce what people are doing right. _OR PARTICULAR FOCUS SELECT VALUES T One technique for reinforcing compliance with the code is to select a value for particular focus and discussion during a meeting. For example, one city manager describes how-she incorporated the city's fiscal responsibility discussion into a staff meeting on budget matters.The staff incorporated the city's values into a series of budget principles to help guide the council's budget approval process. The process of integrating the city's values into a difficult decision-making process helped make the ethics code real and was well received. "See Blanchard and O'Connor,Managing By Nblues,chapter Vl. INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE I 49 MAKING THE CODE REAL: EXA'..N,IPLE A colleague ofyours is very active in an association ofagencies like yours.She diligently attends conferences organized by the _ association and brings conference materials back to share with her colleagues.She also makes a point of making a brief report CORE VALUES about the conference at the appropriate point in.meetings of I FOR GROUPS your agency's governing board_After one such report,you say: I really appreciate these'reports. It helps both the The City of Santa Clara public and me understand what our agency gets out has developed a worksheet -of ourparticipadon in this association and attending to assist with training these conferences fvalue: careful use of public employee workgroups on resources/.Receiving the conference materials also the city's ethics code.The helps me learn, even though I was not able to attend worksheet lists he values and the expressions the conference. [values: more careful use of public (columns one and two on resources and concern for colleagues]It also means the values menu in our agency is part of a larger discussion of issues chapter 4):out on the affecting our ability to serve our community at the worksheet and then asks state/regional level. [values: vision/leadership] employees to rate (on a scale of one to four,with one being very high and four being very low): • How important a value is to their particular job; The goal is to create a culture of ethics built around the values that are and important to the agency and then create a culture of recognition for the - everyday ways that individuals put those values into action. • Their perceived skill level on that value. If your agency's code applies to employees,work with your top manage- The worksheet then asks ment to reinforce a culture of recognition by celebrating the efforts of employees to brainstorm those employees whose actions reflect the agency's values. In addition to ways to develop skills day-to-day recognition, such recognition should be a part of each in a particular area. employees' annual performance review, just as the degree to which These worksheets supervisors promote a culture of recognition should be part of their annual prepare the employees performance review. for the discussions in the training sessions. 50 CHAPTER 5 fir►' RECRUIT WITH ETHICS IN MIND - If your agency's code applies to board and commission appointees and/ or staff, include ethics issues in the selection process. Some ways to do this include: • Refer to the Agency's Code in the Application Materials. This highlights the importance of the code to the agency. • BROADE'N CODE • Interview for Ethics. In the interview, describe a scenario relevant • N to the position in question that implicates one or more of the values in the agency's code.Ask the applicant how he or she would analyze The review process can the situation.Does the applicant recognize the question as presenting also be a springboard ethical issues? Does the applicant make reference to the agency's for expanding the code's code in the applicant's response? application to additional people.The agency's Sign the Code upon Joining the Team.Include the code along with governing board can a signature line in the various documents an individual is asked to fill direct-staff to begin the out after having been selected (see also section on training, beloii�' consultation process so that the suggested modifications to the By highlighting the importance of ethics during the recruitment process, code will be ready by the agency underscores the agency's commitment to its code. This also the code's first helps the agency identify those potential appointees and employees who anniversary. will readily embrace the values in the agency's code. It will also help the Irrespective of whether agency identify those who will help the agency make the code a success. an expansion of the code is planned, the agency should commit TRAINING to an abbreviated version of the code If a person's conduct is governed by the agency's code. that individual adoption process as part should receive training on the code, either upon the code's adoption or of an annual review of upon joining the agency team. "Ethics training is critical;' says Art the code.This review Madrid, Mayor of La Mesa. can also include community and self- Two relatively practical training options include: assessment on how the agency performed Have the individual review the code and think of specific ways it in conforming their will affect his or her service to the agency expressedd by the code. (a modified version of conduct the values the exercise agency officials went through in adopting the code, see the third column on the values menu in chapter 4); and INSTITUTE for LOCAL SELF GOVERNMENT - DEVELOPING A LOCAL AGENCY ETHICS CODE ( 51 \�J • Develop scenarios/case studies for ethical dilemmas implicating the values in the code and then having small group discussions on how the dilemma should be resolved. The goal of the training is to relate the concepts in the code to the day-toBRIC. wr IDEA - day realities of the individual receiving the training. As with any adult learning experience,the more interactive and engaging the experience is, LOCAL ETHICS the more effective the training will be. Some private sector companies use online training on their ethics codes; other companies offer online training services on their ethics codes as THE IMPORTANCE OF AN ANNUAL REVIEW A number of local Reviewing the code annually serves a number of critical purposes in the agencies conduct implementation strategy, according to Jennifer Sparacino, Santa Clara candidate briefings or City Manager. She notes that the review process is an opportunity to: orientations.Including asegment on the agency's • Increase people's awareness of the code; code and the relationship of the state.'s"Code of Engender enthusiasm for the code; Fair Campaign Practices" Broaden the number of people involved with the code; and to the local code will highlight your agency's • Keep the code a vital document. commitment to ethics in both campaigning The annual review process is also an opportunity to celebrate successes and public service. under the code. It also highlights the ethics-in-political- campaigning issue for any media attending the orientation. The goal is to help the media and the public to be better equipped to ask the question of whether candidates are"fit"for the office they seek based on whether they demonstrate commitment to the community's prevailing ethical norms in public service. Winter,Gretchen A.and Simon. David J.."Code Blue,Code Blue: Breathing Life into Your Company's Code of Conduct."ACCR Docket,NovemberiDecember 2002,at 72,82-84. 52 CHAPTER 5 PROMOTING THE CODE WITHIN THE COMMUNITY Once the code has been adopted, think about ways to publicize the code to the community and those who regularly interact with your agency. • Post the code prominently on your agency's website; • Talk up the code in meetings with community leaders and in presentations to service clubs; and • Distribute the code to those who do business with the city, for example in attachments to requests for proposals or as a general mailing to all vendors expressing the agency's appreciation for the opportunity to do business with vendors. These efforts provide positive exposure for the agency's efforts in the ethics area. They also enable the community to hold agency officials accountable for conforming their conduct to the code. A SPECIAL NOTE ABOUT ETHICS CODES `�.✓ AND CAMPAIGNS Political interest[can]nerer be separated in the long run front moral right — Thomas Jefferson What about ethics codes as they relate to local campaigning? After an agency has adopted its code, it may want to determine whether some of the values and expressions of those values are relevant to campaigns.The City of Santa Clara did this and conducted a number of workshops about its ethics code and its relevance to campaign conduct for candidates,their managers and supporters.49 The city reports that acquainting candidates with the city's values produced good results in terms of a more positive campaign with fewer personal attacks. 1°Santa Clara's work in this regard was featured in the December 2002 issue of Western Cin- magazine(article begins on page 29). Santa Clara won the League of California Cities'prestigious Helen Putnam Award for its efforts. INSTITUTE for LOCAL SELF GOVERNMENT • DEVELOPING A LOCAL AGENCY ETHICS CODE 53 CALIFORNIA'S CODE OF FAIR CAJ�JPAJGN PR.ACTICES There'are basic principles of decency,honesty,and fair play which every candidate forpublic- office in the State of California has a moral obligation to observe and uphold,in order that, after vigorously contested,but fairly conducted campaigns,our citizens may exercise their constitutional right to a free and untrammeled choice and the will of the people may be fully and clearly expressed on the issues. THEREFORE: (1) 1 SHALL CONDUCT my campaign openly and publicly, discussing the issues as I see them, presenting my record and policies with sincerity-and fianlmess,and criticizing without fearor favor the record and policies of my opponents or political parties which merit such criticism.. (2)'I:SHALL NOT USE OR PERMIT the use of character defamation;whispering campaigns, libel,slander, or scurrilous attacks on any candidate or his or her personal or family life. (3)I SHALL NOT USE OR PERMIT any appeal to negative prejudice based on race,sex, religion,national origin,physical health status,or age. ti..d (4)I.SHALL NOT USE OR PERMIT any dishonest or unethical practice which tends to corrupt or undermine our American system of free elections,or which hampers or prevents the full and free expression of the will of the voters including acts intended to hinder or prevent any eligible person from registering to vote,enrolling to vote,or voting. (5)1 SHALL NOT coerce election help or campaign contributions for myself or for any other candidate from my employees. (6)I SHALL IMMEDIATELY AND PUBLICLY REPUDIATE support deriving from any individual or group which resorts,on behalf of my candidacy or in opposition to that of my opponent,to the methods and tactics which I condemn. 1 shall accept responsibility to take firm action against any subordinate who violates any provision of this code or the laws governing elections. (7) 1 SHALL DEFEND AND UPHOLD the right of every qualified American voter to full and equal participation in the electoral process. I, the undersigned,candidate for election to public office in the State of California or treasurer or chairperson of a committee making any independent expenditures,hereby voluntarily endorse, subscribe to,and solemnly pledge myself to conduct my campaign in accordance with the above principles and practices. Date Signature i 54 CHAPTER 5 Another thing to keep in mind is that California law requires all candidates to be given the opportunity to sign a code of campaign conduct.50 The code is provided to a candidate at the time he or she is given the papers necessary to run for office.The local elections official keeps copies of all signed codes on hand for public inspection until 30 days after the election.'' A candidate's agreement to abide by the code is voluntary." For the text of the code, see sidebar on page 53. "See Cal. Elec.Code§20440. "Sce Cal. Elec.Code§20441 Sce Cal. Elec. Code §20444. `�' k CHAPTER 6: CONCLUSION "The way to succeed is never quit. That's it. ke But really be humble about it." -Alex Haley, 20th-centuil,American author "The greater the obstacle the more glory in overcoming it." —Jean Baptiste Moliere. 17th-century French dramatist Is adopting an ethics code going to change the community's perception of agency officials overnight? No. But the process of adopting and implementing an ethics code can have several benefits. Among them is the opportunity to make a meaningful commitment to ethical values in public service.Another is meeting the public's expectations regarding how its public servants should behave. To achieve these benefits,the agency needs to do more than simply adopt a suggested"model"ethics code.The agency must make a concerted effort Conclusion...................................5s r: ' to reflect on the ethical values that should inform a public official's .. behavior. It must then assiduously put these values into action. ,:. l • An ethics code is not a "silver bullet" solution to ethics issues for an 'v agency. But. by committing to both a process of developing and implementing a values-based ethics code. an agency and its officials can be better prepared for challenges they may face. ; There is also a synergy when multiple agencies make this commitment „ and adopt a code. If significant numbers of local agencies adopt and genuinely implement w ^f' �ytf such values-based ethics codes, it will provide empirical support for the proposition that many believe to be true — that local government is the most responsive, ethical and accountable level of government. Let the Institute for Local Self Government know what your agency decides to do,what you learn from the experience and how this guide can be improved. We welcome your feedback in all forms. gin,; r 56 1 CHAPTER 6 This page was left intentionally blank {;fir ,�•���� � RESOURCES OF INTEREST r : WEBSITES am American Society for Public Administration. This organization has an interesting, values-based professional ethics code. N%,wNv.aspanet.om/ethics/coe.html Center for the Study of Ethics in the Professions. Sponsored by the Illinois Institute of Technology, this site provides links to ethics codes online. wwm.iit.edu/del2artments/c5ep City Ethics.A collaborative effort with the Council on Goverrunental Ethics, this site features presentation materials from conferences and links to other ethics sites. www.cityethics.ora Communities of Character. Communities of Character is a '-r;; C•l-% `t G {p- f comprehensive and practical approach to character education and training which helps organizations define their core values. wcbsitcs.......................................57 a Groups identify the ideals that will shape behavior. Publications ...59 �' www.communitiesofcharacter.oro HI • Ethics Toolkit.An interesting site offering a "toolkit" for ti rt adopting ethics codes. www.ethics.orr/toolkit.html *w Independent Commission Against Corruption. This site has a 200-plus page guide entitled"Practical Guide to Corruption Prevention:' >,4X w„•w.tcac.ors �.; ��, Ethics Codes and Campaigns.ai_ This site has information for P g candidates, media and the public about promoting voluntary codes of campaign conduct. http:/.w-ww.campaiiznconduct.org/ 1a�� •FF 17 1i i ,Ali t .5 aL.iwf�i5 K.�.• 58 RESOURCES OF INTEREST PUBLICATIONS Berman, Evan M.,West, Jonathan P., Bonczek, Stephen J. (editors), The Ethics Edge, International City/County Management Association: 1998. Blanchard, Ken & O'Connor; Michael,Managing B), kai lues, Barrett-Koehler Publishers: 1997. Josephson Institute of Ethics, Preserving the Public Trust:Five Principles of Public Service Ethics, Josephson Institute of Ethics: 1997. Kazman, Jane G. and Bonczek, Stephen J.,Ethics in Action: Leader's Guide, International City-County Management Association: 1999. Kidder, Rushworth M., How Good People Mahe Tough Choices, Simon & Schuster: 1995. Lewis, Carol W., The Ethics Challenge in Public Service: A Problem Solving Guide. Jossey-Bass Publishers: 1991. Mackenzie, G. Calvin & Hafken. Michael, Scandal Proof Do Ethics Laws Mahe Government Ethical? Brookings Institution Press: 2002. Wear Simmons, Charlene, Roland, Helen, Kelly-DeWitt, Jennifer, Local Government Ethics Ordinances in California, California Research Bureau: March 1998 (available online at www.library.ca.gov/ CRB/98/02/98002.pdf).a Local Agency Code of EthicsRev9_Ldoc D • • • • rm dd' f l " To order publications, fill out this order form and mail it with your payment to the address shown below. s t 1 :4- (.i 0 R ,tot'I,;ti Thank you for your order. TITLE SKU # QUANTITY UNIT PRICE TOTAL Developing a Local Agency Ethics Code:A Pnocess- 1505 $20.00 Oriented Guide Ethics& the Elected Offlicial:Avoiding the Slippery 1299 $15.00 Slope(Video) Ethics Law Training for Local Law Officials(1Tdeo) 1376 $15.00 A Local Official's Guide to Ethics Laws, 1181 $10.00 Shipping& Shipping/Handling Charges Handing Order Amount Add 10%discount for orders S1 -$9.99.....................................................$3.00 TOTAL S 10-$24.99.................................................$7.00 offrve or more copies of S25-S74.99............................. ................ $9.00 the same publication. S75-$124.99............................................. $13.00 All prices inchtde sales tax $125-$199.99........................................... $16.00 S205-$349.99........................................... $20.00 S350 and up.........................................8%of total MAILIN(:ADDRESS: CITY: STATE: ZIP CODE: NAME: TITLE: STREET ADDRESS:(Nu P.O.BOX PLEASE) TELEPHosr: FAX: Payment information: Mail or fax with payment to: Check enclosed made payable to the LEAGUE OF CALIFORNIA CITIES LEAGUE OF CALIFORNIA CITIES ❑ visa D MasterCard ATTN: Helen Marshall —CityBooks 1400 K Street, Suite 400 CARDHOLDER*.NAME: Sacramento, CA 95814 CREDIT CARD NrmBER: Phone : (916) 658-8257 (direct line to Publications) Fax: (916) 658-8220 (direct fax to Publications) EXPIRATION DATE: AUTHORIZED SIGNATURE: Payment must be included to process order. TOP SEVEN THINGS TO KNOW ABOUT ETHICS CODES I. What An Ethics Code Is.An ethics code 5. Adoption of the Code Is Just the First reflects the agency's shared values in public Step. For the agency's ethics code to truly service, leadership and decision-making. make a difference, the values expressed in the A code reflects upon the agency and gives code need to be communicated and applied. the public confidence about the agency's The code needs to be communicated to all values and priorities. whose behavior is intended to be guided by 2. The Process Is As Important As the the code; training/orientation sessions need Product.While it makes complete sense to to cover the code and its importance to the start with a review of other agencies codes community. This is how officials"walk-the- it is important to have your agency's code tak"and the "walk"needs to start at the reflect the unique values and priorities for upper-most levels of the organization. your community. It is also important for 6. Periodic Review Helps. Periodically those whose conduct will be guided by the reviewing the principles in the code (this code to have input into the content. guide recommends an annual.review) 3. Style Matters.An agency's code should be keeps the code current and in everyone's written in simple, direct language. Standards consciousness—including the public's. This should be stated as much as possible in the process can include the addition or revision positive (what kinds of conduct are desired of standards, as well as the expansion of the as opposed to what is prohibited). Illustrate code's application to others in the agency. the standards for greater clarity and under- 7. Accountability. Self-accountability is the standability (What does a particular standard most constructive approach.A helpful or value look like in practice?What kinds of question to pose in a situation in which it behavior are inconsistent with the particular appears conduct inconsistent with the code standard or value?).Avoid legalistic language will occur or has occurred is whether a at all costs. particular course of action is or isn't (was or 4. Values-Based versus Rule-Based Codes. wasn't) consistent with the agency's ethics Rules-based codes speak in terms of"don'ts". code and values.When a heavier hand is Values-based codes speak more in terms necessary, any warning and counseling of of aspirations and priorities ("do's"). The individuals about the importance of adhering concept underlying this guide is that values- to the code should be done in a fair, consis- based codes serve as a positive complement tent and even-handed manner. to the current framework of ethics laws in California. Developing a Local Agency Ethics Code: A Process-Oriented Guide �`'� SKU: 1505 Price: $20.00 A LOCAL OFFICIAL'S REFERENCE ON Ethics Laws : CONNECTING PRINCIPLES TO PROHIBITIONS TO CONSEQUENCES 2 I ETHICS LAW REFERENCE ii7 INSTITUTE for LOCAL SELF GOVERNMENT The Institute's mission is to serve as a source of independent research and information that helps local officials serve their communities. A key goal of the Institute's public confidence program is to foster the public's confidence in local government. Adherence to the state's various ethics laws is, of course, is directly related to that goal. The Institute also has active programs in the areas of fiscal and land use issues. For more information about the Institute and its programs,please visit the Institute's Web site at www.ilsiz.org. The Institute welcomes feedback on this and all elements of its work program. A pre- addressed feedback form is included at the end of this publication for this purpose. A Local Official' s Reference on Ethics Laws : CONNECTING PRINCIPLES TO PROHIBITIONS TO CONSEQUENCES FALL 2004 4 I ETHICS LAW REFERENCE sae/ The Local Official's Guide to Ethics Laws ©2004 by the INSTTfUTEfor LOCAL SELF GOVERNMENT 1400 K STREET,StnTE 400 SACRAMENTO,CA 95814 916/658-8208 www.iisg.org To order additional copies of this publication,please contact CityBooks at 916/658-8257. t THE FOLLOWING ASSOCIATIONS CONTRIBUTED TO THE CREATION AND UPDATE OF THIS PUBLICATION: Association of California Water Agencies Association of California Healthcare Districts California Association of Sanitation Agencies California School Boards Association California Special Districts Association California State Association of Counties Community College League of California League of California Cities SPECIAL THANKS TO: 6 I ETHICS LAW REFERENCE ` .r✓ This page left intentionally blank. TABLE OF CONTENTS INTRODUCTION ...........................................................................................................11 Ethical Expectations of Public Officials.............. 11 ... The Relationship of Ethics Laws to Ethics...............................................................................11 Laws and Penalties................... Ethics and the Ballot Box......................................................................................................... 11 Typesof Ethics Laws.................................................................................................................. 11 ThisGuide's Goal....................................................................................................................... 12 PRINCIPLE #1: NO PERSONAL FINANCIAL GAIN....................................................13 KeyThings to Know...................................................................................................................13 Summary of Types of Interests Affected by Disclosure and Disqualification Rules............ 14 The Obligation to Disclose Personal Financial Interests......................................................... 15 BasicRules................................................................................................................................ 15 WhoMust Disclose.................................................................................................. ........ 15 WhatMust Be Disclosed...................................................................................................... 15 DisclosureSchedule.............................................................................................................. 16 Consequences of Violations...................................................................................................... 16 Disqualification Based on Economic Interests under the Political Reform Act................... 18 BasicRules................................................................................................................................ 18 Consequences of Violation....................................................................................................... 18 SpecialIssues............................................................................................................................21 Determining Whether You Have An Economic Interest in the Decision.............................21 RealProperty Interests..........................................................................................................23 Steps'to Disqualify Yourself.................................................................................................24 Effectof Disqualification......................................................................................................25 Interests in Agency Contracts Barred.......................................................................................26 BasicRules................................................................................................................................26 Consequences of Violations......................................................................................................27 Exceptionsto Rules...................................................................................................................28 Restrictions on Property Ownership in Redevelopment Areas..............................................29 BasicRules................................................................................................................................ 29 Consequencesof Violation.......................................................................................................30 �,/ Exceptions................................................................................................................................. 30 8 I ETHICS LAW REFERENCE HelpingFuture and New Employers.........................................................................................31 BasicRules............................................................................................................................... 31�J Consequences of Violation.......................................... Receiving Special Favors Or Money For Official Actions.............».......................................31 32 BasicRules........................................................................................................... .................... 32 Consequencesof Violations...................................................................................................... PRINCIPLE #2: NO PERSONAL ADVANTAGES AND PERKS..................................35 Key Things to Know...................................................................................................................35 Personal Loans............................................................................................................................36 BasicRules................................................................................................................................36 Consequencesof Violation.......................................................................................................36 Gifts..............................................................................................................................................37 BasicRules................................................................................................................................37 Consequences of Violation.......................................................................................................38 Exceptionsto Rules...................................................................................................................38 Travel Payments..........................................................................................................................40 BasicRules................................................................................................................................40 Consequences of Violation.......................................................................................................4 Travel Payments from Non-Transportation Companies.......................................................4(r Travel Passes from Transportation Companies....................................................................41 Exceptionsto Rules...................................................................................................................41 Travel Payments from Non-Transportation Companies.......................................................41 Travel Passes from Transportation Companies ....................................................................43 Speakingand Other Fees............................................................................................................43 BasicRules................................................................................................................................44 Consequences of Violation.......................................................................................................44 Exceptionsto Rules...................................................................................................................45 Useof Public Resources for Personal Purposes.......................................................................46 BasicRules................................................................................................................................46 Consequences of Violation.......................................................................................................47 Exceptionsto Rules...................................................................................................................47 Special Issue: Use of Agency Letterhead or Titles...................................................................47 Expense And Expense Reimbursement Issues.........................................................................49 GeneralRules............................................................................................................................49 Limits on Public Official Compensation..............................................................................49 Limits on Expense Reimbursement......................................................................................49 Consequences of Violation....................................................................................................... c. StateLaw Penalties............................................................................................................... INSTITUTE for LOCAL SELF GOVERNMENT - PUBLIC CONFIDENCE PROJECT 19 Penalties Under Federal Law................................................................................................ 51 SpecialIssues............................................................................................................................ 52 Use of Agency Credit Cards for Personal Expenses............................................................. 52 SpouseTravel........................................................................................................................ 52 PickingUp the Tab for Others.............................................................................................. 53 Use of Public Resources for Political Purposes........................................................................54 GeneralRules............................................................................................................................ 54 Consequences of Violation....................................................................................................... 55 SpecialIssues............................................................................................................................ 55 Mass Mailings at Public Expense......................................:.................................................. 55 Office Holder-Directed Expenditures................................................................................... 56 CharitableDonations............................................................................................................ 56 CampaignSupport from Agency Staff................................................................................. 56 Newspaper Criticizes Agency's Charitable Activities.......................................................... 58 Local Official Prosecuted for Misuse of Office Resources.................................................. 58 PRINCIPLE #3: TRANSPARENCY AND FAIRNESS IS KEY......................................59 KeyThings to Know...................................................................................................................59 Conducting the Public's Business in Public..............................................................................60 yGeneral Rules............................................................................................................................ 60 Consequences of Violations...................................................................................................... 61 The Public's Right To Participate in Meetings........................................................................62 BasicRules................................................................................................................................ 62 Consequencesof Violation....................................................................................................... 63 ThePublic's Right To Access Records......................................................................................65 BasicRules................................................................................................................................ 65 Consequencesof Violation....................................................................................................... 65 The Right to Fair and Unbiased Decision-makers...................................................................66 BasicRules................................................................................................................................ 66 Consequences of Violation....................................................................................................... 67 Decisions May Not Benefit Family............................................................................................68 BasicRules................................................................................................................................ 68 Consequencesof Violation.......................................................................................................68 Holding Multiple Public Offices................................................................................................69 BasicRules................................................................................................................................ 70 Consequencesof Violation....................................................................................................... 71 SpecialIssues............................................................................................................................ 71 Employees Who Run for the Governing Board of Their Public Agency Employers Employees................... .. ...... 71 .... .............................................................................................. 10 I ETHICS LAW REFERENCE Individual Agency Guidelines.............................................................................................. 71 Disqualification Based on Receipt of Campaign Contributions.............................................72 BasicRules... . ......................................................................................................................... 72 AffectedOfficials.................................................................................................................. 72 Kinds Of Proceedings Affected............................................................................................73 Actions That Must Be Taken................................................................................................ 73 Consequencesof Violation....................................................................................................... 74 Charitable Fundraising..............................................................................................................75 BasicRules................................................................................................................................ 75 Consequences of Violation....................................................................................................... 76 INTRODUCTION Ethical Expectations of Public Officials Public officials--elected and appointed--wield the power of government and serve as stewards of both the public's resources and trust. For this reason, the public holds public officials to high standards of ethical conduct. The role of public perception makes public service ethics unique. A public official's own analysis of what constitutes the"ethical" course of conduct is only the first step of the analysis. The second is whether the public will perceive a particular course of action as being ethical. Perception is key in this area. The Relationship of Ethics Laws to Ethics Laws and Penalties There are two primary vehicles through which the public expresses it expectations of public official conduct. The first is in a body of laws that create minimum ethical standards for public officials. These are the ethical minimums with which public officials must comply. If they don't,penalties, either civil or criminal,typically follow. In other words, the law is what officials must do. Because of the importance of the public's trust in its governing institutions, some of these penalties are quite harsh. As a result, this guide covers penalties in some detail. Ethics and the Ballot Box Of course, the second way the public expresses its expectations is at the ballot box. In all likelihood,minimum compliance with ethics laws is not going to meet the public's expectations for ethical behavior from public officials. Just because a course of action is legal, does not mean it is ethical. Put another way, ethics is what one ought to do, above and beyond the legal minimum requirements. This meets the official's own standards and those of the public the official serves. This is one of the reasons good ethics is good politics. Types of Ethics Laws Generally speaking legal requirements relating to public official ethics generally fall into three categories: • Laws designed to prevent a public official's financial interests from influencing public agency decisions; • Laws limiting personal advantages and perks relating to public office; and • Laws relating to open government, fair processes, and impartial decision-making. Within each of these categories,the law promotes ethics in two ways: • By requiring public disclosure of information that will enable the public and the media to hold public officials accountable for meeting the public's expectations for conduct; and/or • By prohibiting certain actions and situations which present too great of a risk of jeopardizing the public's confidence and trust in its public institutions and officials. As one learns about the legal requirements relating to public ethics, it is important to keep in mind the following paradox. Even though the laws represent minimum standards for behavior, they still may sweep more broadly to affect conduct that is perfectly ethical. It is very difficult to write laws that make sense in every situation. Because of the harsh penalties, though, the imperfections of the law do not make it justifiable or wise to thumb one's nose at ethics laws. This Guide's Goal By serving as a reference, this guide is designed to alert local officials to the situations that may pose problems under ethics laws, so that the official can 1) seek advice from experts, 2) stay we within the bounds of the law and 3)meet the public's expectations. The guide also describes the consequences of violating ethics laws, so local officials can be fully informed of the risks of a casual or dismissive attitude towards these laws. Unfortunately, the laws in this area can be extraordinarily complex. The goal is to provide local officials with an overview of the legal requirements to alert then when they need to consult with their agency's legal counsel or regulatory authorities when situations arise that may implicate these legal requirements. This guide is not legal advice. Because of the need for brevity, this guide is necessarily incomplete and does not attempt to address all laws that might be considered "ethics" laws or all issues that arise under those laws that are discussed. Moreover, keep in mind that the law can change—particularly in the ethics area. [pull quote: It is very difficult to write laws that make sense in every situation. Because of the harsh penalties, though, the imperfections of the law do not make it justifiable or wise to thumb one's nose at ethics laws. [ PRINCIPLE #1: NO PERSONAL FINANCIAL GAIN The Public's Expectations =:> Public officials will make decisions solely with the public's interests in mind. z--> The prospect of personal financial benefit (or avoidance of a personal detriment)has no place in a public official's decision-making process. What This Means Generally speaking public officials: => Must disclose their financial interests to the public => Must disqualify themselves from participating in decisions that may affect(positively or negatively)their financial interests (see reverse for list of types of financial interests) => Cannot have an interest in a contract made by their agency May not acquire interests in property within redevelopment areas over which they have decision-making influence. => Cannot influence agency decisions relating to potential prospective employers => Cannot request, receive or agree to receive anything of value or other advantages in exchange for a decision Speak with your agency counsel about the specifics of these requirements as they may apply to our situation. Summary of Types of Interests Affected by Disclosure and Disqualification Rules ❑ Income. Any source of income of$500 or more(including promised income)during the prior 12 months for you or your immediate family(spouse and dependent children). ❑ Personal Finances. Your or your immediate family's (spouse and dependent children) personal expenses, income, assets, or liabilities. ❑ Real Property. A direct or indirect interest in real property of$2000 or more that you or your immediate family(spouse and dependent children) have, including such interests as ownership, leaseholds(but not month-to-month tenancies), and options to purchase. Be especially alert when any of these are located within 500 feet of the subject of your decision. ❑ Contract. You or a member of your family would have an interest(direct or indirect)in a contract with the agency. ❑ Investment: An interest in a business that you or your immediate family(spouse and dependent children)have a direct or indirect investment worth $2000 or more. ❑ Business Management or Employment. An entity for which you serve as a director, officer, partner, trustee, employee, or manager ❑ Related Businesses. An interest in a business that is the parent, subsidiary or is otherwise related to a business that you: ■ Have a direct or indirect investment worth$2000 or more; or ■ Are a director, officer,partner, trustee, employee, or manager. ❑ Business-Owned Property. A direct or indirect ownership interest in a business entity or trust of yours that owns real property. ❑ Lender/Guarantor. A source of a loan (including a loan guarantor) to you. ❑ Gift Giver. A giver of a gift of$340 or more to you in the prior 12 months to you, including promised gifts. ❑ Campaign Contributor. A campaign contributor of yours (applies to appointed decision- making bodies only). ❑ Other Personal Interests and Biases. You have important, but non-financial, personal interests that could cast doubt on your ability to make a fair decision. The Obligation to Disclose Personal Financial Interests Basic Rules There is an adage about one's life being an open book. Nowhere is this truer than for public officials and their finances. The bottom line is that when you become a public official, the public gets to learn a great deal about your financial life. These requirements come directly from the voters, when they adopted the Political Reform Act in 1974 in the wake of the Watergate scandals.1 Who Must Disclose The short answer is nearly every local elected official and department head. State law specifically lists the following individuals: • Members of boards of supervisors and • City attorneys; city councils; • City managers; • Mayors; • Planning commissioners; • Chief administrative officers; • County and city treasurers; and • District attorneys; • All public officials who manage public • County counsels; investments.2 Other kinds of local agency officials must file by virtue of their agency's conflict of interest code, which is also required by state law.4 This is how the disclosure requirement applies to school board members and special district board members. Board and commission members with significant decision-making authority are subject to disclosure requirements. For example, disclosure requirements apply if the body can make 1) final governmental decisions or 2)recommendations that, over a period of time are regularly approved without significant change by the agency's governing body.5 Additional staff positions may also be required to disclose their economic interests under their local conflict of interest code. Such employees are known as "designated employees." What Must Be Disclosed ' This is a requirement of the Political Reform Act. See generally Cal.Gov't Code§87200 and following. 2 See Cal.Gov't Code§87200;2 Cal.Code of Regs.§ 18701(a). 3 The defmition of local agency is broad and includes counties,cities,special districts,school districts,or"any other department,division,bureau, office,board,commission or other agency of the foregoing." See Cal.Gov't Code§82041. 4 See Cal.Gov't Code§87300 and following. �/ 5 See 2 Cal.Code of Regs.§ 18701(a)(1)(also if the body can either compel or prevent governmental decisions from being made). A public official must disclose the following kinds of economic interests if they meet certain minimum thresholds:6 • Sources of income: • Interests in real property; • Investments; • Business positions; and • Gifts. This disclosure is made on forms called both "Statements of Economic Interests"and"Form 700s." Copies of these forms are generally provided by one's agency; Interactive versions of the form are available from the Fair Political Practices Commission website: www.fppc.ca.gov. The form is lengthy (32 pages),because it contains extensive instructions and other explanatory information about the state's disclosure requirements and thresholds. Disclosure Schedule These forms are filed: • Upon assuming office; • On an annual basis while in office; and • Upon leaving office. RESOURCES FOR FURTHER INFORMATION The Fair Political Practices Commission also offers a nine-page booklet entitled "Your Duty to File" to assist officials.which is available online at w-ww.fppc.ca ggv. For specific questions,please contact the Fair Political Practices Commission or your public agency's attorney. Consequences of Violations What happens if disclosure does not occur? Violations of reporting requirements are punishable by both criminal and civil sanctions, depending on the severity of the violation and the degree of intent to violate the law that enforcement entities are able to demonstrate.7 6 See Cal.Gov't Code§§87200-87210;2 Cal.Code of Regs.§§ 18723- 18740. 7 See generally Cal.Gov't Code§§9I000 and following. Criminal Sanctions. A knowing or willful violation of these requirements is a misdemeanor.8 llft� A person convicted of a misdemeanor under these laws may not be a candidate for elective office for four years following the conviction.9 Such a conviction may also create an immediate loss of office under the theory that the official violated his official duties10 or create a basis for the grand jury to initiate proceedings for removal on a theory that failure to disclose constitutes willful or corrupt misconduct in office.11 In addition, the Fair Political Practices Commission may levy fines of up to $10,000 per violation or three times the amount the person failed to report properly, whichever is greater.12 Failure to accurately report one's economic interests can therefore be a very expensive proposition. Civil Sanctions. Violations prosecuted as a civil matter are punishable by a civil fine of not more than the amount not properly reported.13 Note this means that even careless oversights (as opposed to conscious decisions to not report assets which would form the basis of criminal prosecutions) basically put the overlooked asset at risk of being forfeited. Employees. Employees who don't report completely are also subject to discipline and possibly dismissal, if consistent with the agency's personnel regulations.14 GOOD - ETHICS -IS-GOOD- POLITICS NO Statement of Economic interests forms are public records. The media and others frequently scrutinize these reports—not only for what the reports contain,but also for errors and omissions in reporting. In fact,the Fair Political Practices Commission's Web site(www.f=.ca.go_vl explains how the public may request statements of economic interest during regular business hours and that no conditions may be placed on the public's right to review these forms. Reproduction fees are limited to a maximum of 10 cents per page. The site also offers Commission assistance for those who are having difficulty in obtaining access to Statements of Economic Interests from local agencies. To avoid political embarrassment, fines, criminal prosecution and possibly loss of office, the wisest course is to be fully forthcoming in providing the information required by the form. A good rule of thumb is: if you do not want to report a gift or source of income on the form, do not accept the gift in the first place. e See Cal.Gov't Code§91000(a). e See Cal.Gov't Code§91002. t0 See Cal.Gov't Code§ 1770(h)(providing that a vacancy occurs upon conviction of a felony or of any offense involving a violation of official duties). 11 Cal.Gov't Code§§3060-3074(providing for proceedings to be brought by the grand jury for removal from office). 72 Cal.Gov't Code§91000(b). 13 Cal.Gov't Code§91004. �/ 14 See Cal.Gov't Code§91003.5. [Pull Quote: The disclosure requirements come directly from the voters, when they adopted the / Political Reform Act:] Disqualification Based on Economic Interests under the Political Reform Act The voters have also have created an across-the-board,bright line rule: public officials may not participate in governmental decisions affecting their financial interests. This does not mean that there is nothing "corrupt"or "dishonest"about having a disqualifying conflict of interest. It. typically means that you have a life, with various financial relationships and economic interests. The key is to be aware when your economic interests are implicated by a public agency decision and remove yourself from the decision-making process. This way,there is no question about whether your personal interests affected the decision-making process in any way. Basic Rules A public official may not make,participate in, or influence a governmental decision that will have a foreseeable and material financial effect on the official, the official's immediate family, or any of the official's economic interests.15 Note the breadth of the prohibition: it does not just apply to voting,but the entire process leading up to voting. Also, there may be even more restrictive local requirements. Abstentions Disqualifications Abstentions are instances in which a public official voluntarily chooses not to participate in a decision. You may know that it will be difficult for you to put your personal interests aside and make a decision based solely on the public's interest. Or,you may worry that the public will perceive that you cannot even if you know you can. Disqualification does not involve a choice. When you have a disqualifying conflict of interest you mart not participate in a decision-even if you believe you can be fair.The law makes the determination for you. The issue is not whether you can be fair,but whether the public will doubt you can be fair. Consequences of Violation A refusal to disqualify oneself is punishable by both criminal and civil sanctions, depending on the severity of the violation and the degree of intent to violate the law that enforcement entities are able to demonstrate.16 15 See Cat.Gov't Code§87100 and following. 1 / 16 See generally Cal.Gov't Code a§91000 and following. �a�/ Criminal Sanctions. A knowing or willful violation of these requirements is a misdemeanor.17 A person convicted of a misdemeanor under these laws may not be a candidate for elective office for four years following the conviction.18 Such a conviction may also create an immediate loss of office under the theory that the official violated his official duties19 or create a basis for the grand jury to initiate proceedings for removal on a theory that failure to disclose constitutes willful or corrupt misconduct in office.20 Civil Sanctions. District attorneys, some city attorneys, the Fair Political Practices Commission or a member of the public can bring an action to prevent the official from violating the law.21 Actions brought by the Fair Political Practices Commission can result not only in an order preventing the violation,but a monetary penalty of up to $5,000 per violation.22 If the action is brought by a member of the public,the violator may have to reimburse the costs of the litigation, including reasonable attorneys fees.23 Effect on Agency and Those Affected by Agency's Decision. When a disqualified official participates in a decision, it can also void the decision.24 This can have serious consequences for those affected by the decision as well as the public agency. �f 17 See Cal.Gov't Code§91000(a). 'a See Cal.Gov't Code§91002. 19 See Cal.Gov't Code§1770(h)(providing that a vacancy occurs upon conviction of a felony or of any offense involving a violation of official duties). 20 Cal.Gov't Code§§3060-3074(providing for proceedings to be brought by the grand jury for removal from office). 21 Cal.Gov't Code§§83116, 91001(b),91001.5,91004,91005,91007. 22 Cal.Gov't Code§83116. 23 Cal.Gov't Code§91012. �� 24 See Cal.Gov't Code§91003(b). ABOUT • Consult your agency's attorney as early in the process as possible—as soon as you think a conflict of interest is even a possibility. Early consultation allows.for you and your agency's attorney to analyze all of the facts involved and the relevant law. Even though the analysis is laid out in eight steps, each step has various rules and Fair Political Practices Commission guidelines associated with it. As one seasoned local agency attorney recently observed, the later in the process the consultation occurs,the more conservative the advice is likely to be to make sure the official stays out of trouble. Even though your agency's counsel may be helpful,it is important to know that only a written opinion from the Fair Political Practices Commission will protect you from a Fair Political Practices Commission enforcement action if someone challenges your participation in a decision. You may want to ask your agency's attomey.whether it is advisable to seek such formal written advice from the Commission. Receiving such advice from the Commission takes time—another good reason to raise the conflict issue as early as possible. Good-Ethics-Is-Good-Politics Note Typically it is wise to err on the side of caution when there is a question regarding the appropriateness of your participation in a matter. THE EiGHT STEPS OF A DISQUALIFICATION ANALYSIS The process of determining when an official is disqualified from participating in a decision is a very complex one. There are statutes,regulations and interpretive opinions that flesh out each phrase in the basic prohibition. To organize the analysis,the Fair Political Practices Commission has adopted an eight-step procedure for identifying when one must disqualify oneself from participating in a matter. Although it is useful to be aware of the general outlines of the process,the analysis with all its twists and turns is best undertaken by agency attorneys and the Fair Political Practices Commission staff—particularly since the rules are not necessarily logical or intuitive. 1. Are you a public official within the meaning of the rules? 2. Are you making,participating in making,or influencing a governmental decision? 3. Do you have an economic interest in the decision? 4. Is your economic interest directly or indirectly involved in the decision? 5. Are the financial impacts on one's economic interests considered important(material)enough to trigger a conflict of interest? 6. Is it reasonably foreseeable (substantially likely) that the governmental decision will result in one or more of the materiality standards being met for one or more of your economic interests? 7. Is the deceision's effect on your economic interest different from the effect on the public generally? 8. Even if you have a disqualifying conflict of interest,is your participation legally required? Special Issues Determining Whether You Have An Economic Interest in the Decision The key thing for local officials to focus on is Step 3: whether the official has an economic interest in a particular decision. There are a number of different ways in which an official may have an economic interest in a decision: ❑ Sources of Income. Receiving $500 or more in income from one source within twelve months prior to the decision creates an economic interest. "Sources of income"includes a community property interest in a spouse's income.25 Additionally, if an official has been promised $500 or more from any one source within the twelve months prior to the decision, the person or entity that promised one the money is a source of income to the official.2s ❑ Personal Financial Effect. An official has an economic interest in the official's own expenses, income, assets or liabilities and those of the official's immediate family. If the agency's decision would affect the official personally by causing any expenses, 25 Cal.Gov't Code§§82030,87103(c);2 Cal.Code of Regs.§ 18703.3. �'�'� 26 Larsen Advice Letter,No.A-82-192. income, assets or liabilities to change in a twelve-month period,the decision has a personal financial effect on the official.27 ❑ Real Property. Investing $2,000 or more in real property creates an economic interest. The interest may be held by the official,the official's spouse and children or anyone acting on their behalf. Real property interests can also be created through leaseholds, options and security or mortgage interests in property.28 ❑ Investment. An economic interest is created if an official, the official's spouse or dependent children or anyone acting on their behalf has created an investment worth $2,000 or more in a business entity even if the official does not hold an investment interest or receive income.29 ❑ Business Employment or Management. If a public official serves as a director, officer or partner, trustee, employee or otherwise serves in a management position in a company, an economic interest is created.30 ❑ Related Businesses. A public official has an economic interest in a business that is the parent, subsidiary or is otherwise related to a business that the official: o Has a direct or indirect investment worth$2000 or more; or o Are a director, officer, partner, trustee, employee, or manager.31 ❑ Business-Owned Property. A direct or indirect ownership interest in a business entity or trust of yours that owns real property. 32 ❑ Loans. A source of a loan (including a loan guarantor), unless the loan is from a commercial institution issued on the same terms as available to anyone in the public.33 ❑ Gifts. The receipt of gifts of$340 or more in a twelve-month period prior to the decision from any one person or organization creates an economic interest regardless 1'2 Cal.Code of Regs.§ 18703.5. 28 See Cal.Gov't Code§§82033,87103(b). 29 Cal.Gov't Code§§82034,87103(a);2 Cal.Code of Regs.§ 18703.l(a). 3°Cal.Gov't Code§87103(d);2 Cal.Code of Regs.§18703.1(a)-(b). 31 2 Cal.Code of Regs.§§ 18703.1(c),18236. 3z Cal_Gov't Code§82033(pro rata interest,if own 10 percent interest or greater). 33 Cal.Gov't Code§82030(bx8),(11). of whether the gift-giver is in the agency's jurisdiction. If an intermediary gave an 1 official the gift,the official has an economic interest in the intermediary.35 Additionally, if an official has been promised a gift of$340 or more within a twelve- month period prior to the decision, an economic interest has been created.36 The timeline for determining whether you have an economic interest is twelve months preceding the governmental decision in question--not the calendar year.37 If you think you have one of the forms of economic interests described above, consult with your agency attorney about your situation and how the Fair Political Practices Commission's eight- step analysis applies. Real Property Interests You have determined that a decision may affect your real property interests. The next step is whether that interest is "directly involved"in your decision. This relates to step 4 of the eight- step disqualification process. The Fair Political Practices Commission has endeavored to simplify the analysis by providing bright line rules. A real property interest is directly involved in a decision if one of the following conditions is met: 1. Your property is within 500 feet of the boundaries or proposed boundaries of the property that is the subject of the decision; or 2. The decision involves any of the following with respect to your property: => Zoning,rezoning, annexation, de-annexation, sale, purchase, lease, or inclusion in or exclusion from any governmental subdivision of the property; => Issuance, denial or revocation of a license,permit or other land use entitlement; => Imposition, repeal or modification of any taxes or fees imposed on your property; => Designation of the survey area, selection of the project area, adoption of the preliminary plan, formation of a project area committee or adoption of a redevelopment plan; or 34 Cal,Gov't Code§82028,87103(e),2 Cal.Code of Regs. 18703.4. 35 2 Cal.Code of Regs. 18703.4. 36 2 Cal.Code of Regs. 18703.4. �� 37 2 Cal.Code of Regs.18703.4. => Construction of, or improvements to, streets, water, sewer, storm drainage or similar facilities and the real property will receive new or improved services (excluding / repairs, replacement or maintenance of existing services).38 If a real property interest is directly involved in the decision, the effect is considered material (step 5 of the eight-step analysis)unless an official can prove that the decision will not have an effect on the value of that property. Steps to Disqualify Yourself General Rule. If you are disqualified from participating on a specific agenda item under the conflict of interest rules established by the Political Reform Act, you must:39 • Publicly identify the financial interest or potential conflict of interest in sufficient detail to be understood by the public • Refrain from discussing or voting on the matter • Leave the room until after the discussion, vote, and any other disposition of the matter, unless the matter is on the consent calendar In terms of how one identifies the financial interest or potential conflict"in sufficient detail to be understood by the public,"the Fair Political Practices Commission regulations say the official must describe each type of economic interest held by the public official that is involved in the decision. For example, does the economic interest involve an investment, business position, interest in real property,personal financial effect, or the receipt or promise of income or gifts? Then the official must identify the following: • Investment. If the interest relates to an investment,the name of the business entity in which each investment is held; • Business Position. If the interest relates to a business position, a general description of the business activity in which the business entity is engaged as well as the name of the business entity; • Real Property. If the interest relates to real property, the address or another indication of the location of the property, unless the property is the public official's principal or personal residence, in which case, identification that the property is a residence; • Income or Gifts. If the interests relates to the receipt of income or gifts, then identification of the source; • Personal Financial Effects. If the interest relates to a personal financial effect of the decision, then identification of the expense, liability, asset or income affected. 36 See Cal.Code of Regs. 18704.2. 39 See Cal.Gov't Code C 87105. V Exceptions to the Leave-the-Room Requirement. There are limited exceptions that allow a disqualified official to remain in the room and participate in the discussion as a member of the public when one's"personal interests"are at stake. These include: • Interests in real property wholly owned by the official or his or her immediate family; • A business entity wholly owned by the official or his or her immediate family; and • A business entity over which the official (or the official and his or her spouse) exercise sole direction and control.ao Even though the law allows the public official to remain in the room when these interests are at stake, the public official may still wish to balance that option with the potential that the public may nonetheless perceive that the official is improperly trying to influence his or her colleagues. You may also wish to consider how the public will perceive such testimony. Many officials balance their rights as individuals with their responsibility to maintain the public's trust in both their leadership and the agency that they serve. Note on Closed Sessions. If the decision will be made in a closed session, an official with a conflict may not be present in the closed session during the discussion and decision; that official also may not obtain closed session materials.41 Effect of Disqualification The general rule is that a majority of the membership of a body must be present in order for the council to conduct business—a concept known as a quorum.42 Note, however, the rule is different for county boards of supervisors, which require a majority vote of the entire membership of the board to act. Usually, a majority of the quorum is necessary for an item to pass, although there are special rules that apply to certain kinds of actions. Those who are disqualified from participating in the decision are not counted towards the quorum.44 However, those who abstain because of a pending question concerning a conflict of interest(for example, a council member is waiting to receive an advice letter from the Fair Political Practices Commission)may be counted toward the quorum. This is because they have 40 2 Cal.Code of Regs.§§ 18702.5(d)(3), 18702.4(b)(1). 41 See 2 Cal.Code of Regs. § 18702(c). See also Hamilton v. Town of Los Gatos,213 Cal.App.3d 1050,261 Cal.Rptr.888 (1989). 42 See Cal.Gov't Code§36810(for general law cities).Need cite for special districts and school boards. See also Cal.Civ.Ptoc.Code§§ 12 and 15. 43 See Cal.Gov't Code§25005. "Farwell v. Town of Los Gatos,222 Cal.App.3d 711,271 Cal.Rptr.828(1990)(subsequently ordered not published). See also 62 Ops.An'y �i Gen.698,700(1979). not yet been disqualified (typically their yency attorneys will recommend that they abstain pending resolution of the conflict issue).4 RESOURCES i--olz FURTHER INFORMATION The Fair Political Practices Commission has produced"Can 1 Vote?An Overview of the Conflicts Laws,"which is available online at www.fppp.ca.gov. For specific questions,please contact the Fair Political Practices Commission or your public agency's attorney. [Pull Quote: The disqualification analysis with all its twists and turns is best undertaken by agency attorneys and the Fair Political Practices Commission staff—particularly since the rules are not necessarily logical or intuitive.] Local Official Fined$25K for Participating in Decisions involving Financial Interests A former local official agreed to pay a$25,000 fine to resolve claims he participated in governmental decisions that affected a source of income. The decisions involved a trailer park; the park's owner paid the official,a real estate agent,a $3,000 a month retainer. The official also failed to disclose the income on his statement of economic interests.as The activities triggered both a Fair Political Practices Commission proceeding and a criminal investigation by the district attorney,according to the local newspaper. The paper,which described the official as a former"rising star,"speculated that the official's ethics troubles played a role in the official's loss at the polls earlier that year.47 Interests in Agency Contracts Barred State law strictly forbids public officials from having an economic interest in their agencies' contracts. In essence, this is a prohibition against self-dealing. This particular law has been traced back to the earliest days of California's statehood—to 1851.48 Officials will sometimes hear their agency counsel refer to this issue as a"section 1090 problem,"in reference to the Government Code section containing this prohibition. These restrictions on contracts are in addition to the restrictions of the Political Reform Act. Basic Rules as Id. 46In re:Boyd,FPPC No.01/513(2002). 47"Ex-councilman Agrees to$25,000 Fine,"Orange County Register(December 5,2002). Q California Attorney General,Conflict of Interest(1998)(available on the Anomey General's Web site at bttp://www.caag.state.ca.us/publication.Vconflict/conflict.12dJ a� A public official may not have a financial interest in any contract made by the council or board I of which he or she is a member. • Making a contract. The making of a contract includes preliminary discussions, negotiations, planning and solicitation of bids, as well as voting on the contract itself. • No disqualification allowed. Members of the governing board of a local agency (including a board of supervisors,board of directors, city council or school board) are conclusively presumed to have made any contract executed by the board, or any person or agency under its jurisdiction, even if officials disqualify themselves from participating in the contract. Therefore, when section 1090 applies, the agency may not enter into the contract in question. • Financial Interest. A "financial interest"includes a direct or indirect financial interest. A direct financial interest is present when the official is the party contracting with the agency. An indirect financial interest involves an official who has a financial relationship with the contracting party or will receive some benefit from the making of the contract with the contracting party. Again, it does not matter if the official's financial interest is positively or negatively affected. A key question to ask oneself in evaluating your agency's contracts is: "will this contract affect my interests in any way?" If the answer is "yes," speak with your agency counsel immediately. �...� WHAT IS THE THEORY OF NOT • • When the prohibition against interests in contracts apply,the agency may not enter into the contract,even if.the official with the interest disqualifies him-or herself Why? The theory seems to be that decision-makers may be favorably influenced to award a contract to a colleague— perhaps with the expectation that the favor may be returned in the future. The absolute prohibition guards against such a tendency toward what might be described as "you-scratch-my-back-I'll-scratch-yours" dynamics within the agency. Consequences of Violations The penalties for violating section the prohibition against interests in contracts are severe. Criminal Penalties. Willful violations are a felony and may be punished by fines of up to $1,000, imprisonment and being disqualified from ever holding public office again 49 Effect on Contract. The contract also is "void,"which means that the local agency does not have to pay for goods or services received under the contract.50 The agency may also seek repayment of amounts already paid.51 49 See Cal.Gov't Code§ 1097. 50 Thomson v.Call,38 Cal.3d 633,214 Cal.Rptr.139(1985). �l 51 See Cal.Gov't Code p 1092. Exceptions to Rules There are limited exceptions to the general prohibition when a public official-has a financial interest,but will still be allowed to enter into the contract. Non-Interest Exception. Some potential interests are so small that the Legislature has classified them as"non-interests"in a contract. One example is an officer of a board who receives public services provided by the officer's board on the same terms that the services are provided to the general public. For example, a member of a water district board may receive water service. In such cases, the official and the official's agency may participate in the contract. State law provides a full list of exceptions.52 Remote Interest Exception. A local agency may enter into a contract when a board or council member has a"remote" interest.53 Examples of remote interests include: • Being an employee of the contracting party, if the contracting party has ten or more employees, the employee commenced his or her employment at least three years prior to initially assuming office, and certain other requirements are met; and • Being a supplier of goods or services to the contracting party, when those goods or services have been supplied to the contracting party by the officer for at least five years prior to assuming office. If the decision-maker qualifies as having a remote interest, the agency must then take these steps: • The board or council member must disclose the financial interest to the board or council, and disqualify himself or herself from participating in all aspects of the decision; • The disclosure is noted in the official records of the board or council; and • The board or council, after such disclosure, approves,ratifies or authorizes the contract by a good faith vote of the remaining qualified members of the board or council. Limited Rule of Necessity. Even if there is not an exception from the prohibition, the agency may still enter into a contract if the rule of necessity applies.54 In general, this rule will allow an agency to acquire an essential supply or service. The rule also allows an officer to carry out essential duties of his or her office where he or she is the only one who may legally act. 52 See Cal.Gov't Code§ 1091.5. 53 See Cal.Gov't Code 0 1091. 54 See 70 Cal.Ops.Att'y Gen.45(1987). lm Special Rule for School District Boards. The Education Code specifically allows school board �..d members to vote on collective bargaining agreements and personnel matters that affect a class of employees to which a relative belongs.5 [Pull Quote: A key question to ask oneself in evaluating your agency's contracts is: "will this contract affect my interests in any way?" If the answer is "yes," speak with your agency counsel immediately.] Local Official Loses Land and Money He Sold It For in Agency Land Deal A city official avoided criminal charges but ended up not getting paid for land purchased by the city because of the strict prohibition against interests in contracts. The official had conveyed land desired by the city to a third party who ultimately conveyed the land to the city. The conveyance was part of a complex development proposal to develop prime real estate in the city. The council member, on the advice of the city attorney, disqualified himself from voting on key pieces of the proposal. This wasn't sufficient, the California Supreme Court, ruled. The court found the council member violated the prohibition against interests in contracts. The city kept the land, but the council member had to refund the price paid, plus interest. The court observed that the harsh result was "consistent with the policy of strict enforcement of conflict-of- interest statutes [and], it provides a strong disincentive for those officers who might be tempted to take personal advantage of their public offices . . ."s6 Restrictions on Property Ownership in Redevelopment Areas Basic Rules Special rules apply to redevelopment agency officials (including employees) and property ownership in redevelopment areas. Existing Property Interests. If an official has an interest in any property included within the project area, that officer or employee must immediately disclose that interest in writing to the agency and the legislative body. The disclosure must be included in the official minutes of the agency and the legislative body.57 New Interests. Officials who participate in policy-making activities for redevelopment agencies may not acquire interests in property in project areas.58 55 See Cal.Educ.Code§35107(e). '6 See Thomson v.Call,38 Cal.3d 633,214 Cal.Rptr.139(1985). 57 Cal.Health&Safety Code§33130(a). �i se Cal.Health&Safety Code§33130(a). Consequences of Violation The statutory language could be clearer,but it appears that violation of these requirements constitutes misconduct in office.59 The usual penalty for misconduct in office is removal from office based upon grand jury proceedings and then judicial pronouncement.60 Exceptions Property Acquisitions in Connection with Existing Business Activities. A public official may acquire an interest in property within a project area for the purpose of participating as a business owner if the individual owned a substantially equal interest as that being acquired for three years immediately preceding the selection of the project area.61 Rental Agreements for Business Property. A rental agreement or lease of business property that meets four conditions is may be entered into by a redevelopment agency official. Among other things, the agreement must have terms available to anyone else and must prohibit subletting. The property must be used for the official's principal business. The interest must also be disclosed. Post Improvement Acquisition of Residential Property. A redevelopment agency official may acquire property for personal residential use within a project area. This acquisition must occur after the agency has certified all improvements to the property have been completed. The official must immediately disclose the acquisition in writing to the agency, recording the disclosure in the minutes. The official may not vote on any matters directly affecting the property.63 Local Official Leaves Town after Resigning Office over Claimed Land Purchases A northern California official resigned after becoming the object of a grand jury proceeding to remove him from office. According to newspaper accounts, the charge was that the official speculated on property within a redevelopment area using"straw buyers."The resignation letter noted that the official intended to move out of the area, even though newspaper noted that the official came from a prominent family with deep roots in the community.64 59 See Cal.Health&Safety Code§33130(a)(specifying that failure to make disclosure constitutes misconduct). 60 Cal.Gov't Code§§3060-3074. B1 Cal.Health&Safety Code§33130(b). 62 Cal.Health&Safety Code§33130(c). 6'Cal.Health&Safety Code§33130.5. B4"...Ma or Quits—and the DA's Ha l / y Happy,"Sacramento Bee,January 8,2004. �i�/ Helping Future and New Employers \ wo/ Basic Rules A public official may not influence agency decisions when the interests of a prospective employer are at stake.65 The situation arises when someone is negotiating or has "any arrangement" concerning prospective employment with someone with business before the city. State law66 restricts former state officials from being paid to communicate with their former agency in an attempt to influence agency decisions that involve the making of general rules (such as regulations or legislation), or to influence a permit, license,contract, or transaction involving property or goods. The restriction applies for a year. As this guide goes to press, legislation is pending that would create similar restrictions for local officials.67 Consequences of Violation These requirements are part of the Political Reform Act. Violations of the Act are punishable by both criminal and civil sanctions, depending on the severity of the violation and the degree of intent to violate the law that enforcement entities are able to demonstrate.68 Criminal Sanctions. A knowing or willful violation of this requirement is a misdemeanor.69 Civil Sanctions. District attorneys, some city attorneys, the Fair Political Practices Commission or a member of the public can bring an action to prevent the official from violating the law.70 Actions brought by the Fair Political Practices Commission can result not only in an order preventing the violation, but a monetary penalty of up to $5,000 per violation.71 If the action is brought by a member of the public, the violator may have to reimburse the costs of the litigation, including reasonable attorneys fees.72 Receiving Special Favors Or Money For Official Actions 65 Cal.Gov't Code§87407. 66 Cal.Gov't Code§87406. 67 See SB1351(Soto). 66 See generally Cal.Gov't Code§§91000 and following. 69 See Cal.Gov't Code§91000(a). 70 Cal.Gov't Code§§83116, 91001(b),91001.5,91004,91005,91007. 71 Cal.Gov't Code§83116. \�►' 72 Cal.Gov't Code§91012. Basic Rules Perhaps the most extreme form of using one's office for financial gain is graft. Graft is the act of obtaining money or anything of value through the misuse of one's public position. Examples of graft include bribery and extortion. A bribe involves conferring a benefit on a public official to influence a person's vote, opinion or action.73 Asking for a bribe is illegal, of course,but so is receiving one or agreeing to receive one.74 Under the state's criminal laws, a "bribe"includes anything of value; it also includes receiving"advantages."The advantage can be a future one and the need not involve the payment of money.75 The federal law definition of bribery is even broader.76 "Extortion"involves, among other things, obtaining property from another by the wrongful use of one's public position.77 A public official may not demand money in return for the performance of his or her official duties.78 Note that this covers demanding campaign contributions in return for official action. Public officials are also forbidden from receiving a reward for appointing someone to public office or permitting someone to perform the duties of their offices.79 Consequences of Violations State Law Penalties for Bribery. Receiving or agreeing to receive a bribe is a criminal act, punishable by a combination of prison time, fines and losing one's office and being forever disqualified from holding public office.80 The specified prison sentence is two to four years in state prison. The fines vary according to whether the bribe was actually received. If it was, the fine is a minimum of$2,000 up to either 1) $10,000 or 2) double the amount of the bribe, whichever is greater. If a bribe was not actually received, there still is a fine between $2,000 to $10,000. State Law Penalties for Extortion. Extortion by public officials is a misdemeanor.81 Misdemeanors are punishable by up to six months in county jail, a fine of up to $1,000 or both.82 73 Cal.Penal Code§§7(definition number 6),68(a). 7a See Cal.Penal Code§68(a). 75Id. See also People v.Anderson,75 Cal.App.365(1925). "See 18 U.S.C.§201. 77 See Cal.Penal Code§518. 78 In re Shepard,161 Cal. 171 (1911)(in the context of removal-from-office proceedings for misconduct). 78 Cal.Penal Code§74. B0 See generally Cal.Penal Code§68(a). l B1 Cal.Penal.Code§521. W� Extortion can also be the basis for a grand jury to initiate removal-from-office proceedings for official misconduct.83 State Law Penalties for Appointing Someone to Office. Receiving payment or favors for an appointment is punishable by forfeiture of office, disqualification from ever holding public office again and a fine of up to $10,000." Federal Penalties.If an agency receives more than $10,000 in federal monies (which many agencies do), an official could find him or herself subject to federal prosecution if the amount at stake (for example, a bribe) exceeds $5,000.85 The penalty for bribery under federal law is a fine of up to three times the amount of the bribe or$250,000 (whichever is more), up to 10 years imprisonment or both.86 Restitution. The official may be ordered to pay restitution to the agency of the amount of the profit or advantage received (or loss to the agency) as the result of the misuse of the official's position.87 ANYONEBUT WILL Faced with the temptation of receiving a bribe,it can be easy to underestimate the chances of being caught,let alone successfully prosecuted. Fortunately,bribery is fairly rare which may lead one to mistakenly assume that prosecutors never find out about bribery. �1 In some instances, prosecutors ]cam about illicit activities from informants from within an agency. In other instances, other participants in the process will turn officials in. It's unrealistic and unwise to stake both your reputation and your freedom on not being found out at some point. Moreover,once the specter of prosecution appears,those implicated in any bribery schemes will often be inclined to negotiate a plea bargain for themselves by offering to testify against others. [Pull quote: Asking for a bribe is illegal, of course, but so is receiving one or agreeing to receive one.] Use of Intermediaries Still Leads to Bribery Convictions In a well-publicized prosecution in southern California, federal prosecutors caught local az Cal.Penal Code§ 19. a'Cal.Gov't Code§§3060-3074. a0 Cal.Penal Code§74. 85 18 U.S.C.§666. es See 18 U.S.C.§§666(specifying maximum 10 year prison term and fine"under this title"),3571(general fine for violating federal criminal laws). �.� B7 U.S. v.Gaylan,342 F.3d 1010(9''Cir.2003). officials using intermediaries to secure payoffs for votes on a franchise agreement. The effort was disguised as a"consulting fee"to the intermediary to help secure approval on the franchise, even though the company was the low bidder. The plan was for a sizeable proportion of these fees to end up in local officials' pockets. The company refused to pay,the officials then turned to the company's competitor. According to newspaper reports, the competitor agreed to pay. Most of those involved pled guilty to charges. Prosecutors received material assistance in their investigation when one of the officials agreed to secretly tape record meetings with the others.$$ 88 "Mayor Pleads Guilty in...Corruption Case,"Los Angeles Times(July 30,2003). PRINCIPLE #2: NO PERSONAL ADVANTAGES AND PERKS What the Law is Trying to Achieve Central to the concept of public service is the notion that public officials receive only the stipends and salaries provided to them. • The public is aware that those with business before an agency will attempt to curry favor with decision- makers and that these efforts may interfere with a public official's responsibility to make decisions solely based on the public's interests. • Public officials serve as stewards of public agency resources;these resources may not be used for the personal or political benefit of public officials. What This Means Generally speaking,public officials: =:> Cannot receive loans from those within the agency or with whom the agency contracts; loans from others must meet certain requirements. => Must disclose all gifts received over$50 and may not receive gifts aggregating to over$340 from a single source in a given year => May only accept free trips and travel expenses under limited circumstances => May not accept free transportation from transportation companies. => Cannot receive compensation for speaking,writing an article or attending a conference Cannot use public agency resources(money, travel expenses, staff time and agency equipment)for personal purposes. => Must assure that all expenses incurred at public agency expense have a demonstrable public purpose and necessity. => Cannot use public agency resources(money,travel expenses, staff time and agency equipment)for political purposes. => Cannot send mass mailings at public expense. =:> Cannot make gifts of public resources or funds. => Cannot solicit agency employee support for their political causes. Speak with your agency counsel about the ecifics of these re uirements as they may apply to your situation. Public officials must be particularly careful when it comes to receiving gifts and certain other / kinds of favors from both those that do business with the agency and those who work at the agency. Issues of special concern include personal loans, gifts, travel payments, speaking and writing fees, as well as use of agency resources for personal or political advantages. Personal Loans Basic Rules Elected officials and others may not receive a personal loan from any officer, employee,member or consultant of the official's respective agency while in office.89 There also are limits on elected officials' and others' ability to receive loans from those with contracts with the agency (except for bank or credit card indebtedness made in the regular course of the company's business).90 Personal loans over$500 from others must meet certain requirements (for example,be in writing, clearly state the date, amounts and interest payable).91 Consequences of Violation These restrictions are part of the Political Reform Act. Violations of these laws are punishable by both criminal and civil sanctions, depending on the severity of the violation and the degre intent to violate the law that enforcement entities are able to demonstrate.92 11� Criminal Sanctions. A knowing or willful violation of these requirements is a misdemeanor.93 A person convicted of a misdemeanor under these laws may not be a candidate for elective office for four years following the conviction.94 Such a conviction may also create an immediate loss of office under the theory that the official violated his official duties95 or create a basis for the grand jury to initiate proceedings for removal on a theory that failure to disclose constitutes willful or corrupt misconduct in office.96 Civil Sanctions. District attorneys, some city attorneys, the Fair Political Practices Commission or a member of the public can bring an action to prevent the official from violating the law.97 69 See Cal.Gov't Code§87460(a),(b). 90 See Cal.Gov't Code§87460(c),(d). 91 See Cal.Gov't Code§87461. 92 See generally Cal.Gov't Code§§91000 and following. 93 See Cal.Gov't Code§91000(a). 94 See Cal.Gov't Code§91002. 95 See Cal.Gov't Code§1770(h)(providing that a vacancy occurs upon conviction of a felony or of any offense involving a violation of official duties). 96 Cal.Gov't Code§§3060-3074(providing for proceedings to be brougbi by the grand jury for removal from office). I 97 Cal.Gov't Code§§83116, 91001(b),91001.5,91004,91005,91007. Actions brought by the Fair Political Practices Commission can result not only in an order a preventing the violation,but a monetary penalty of up to $5,000 per violation. If the action is brought by a member of the public, the violator may have to reimburse the costs of the litigation, including reasonable attorneys fees.99 Loan Costs Local Official More than Interest An elected official found himself in hot water with the Fair Political Practices Commission after he received a $1,000 loan from a staff member and subsequently voted to fire the staff member. According to the FPPC documents, the council member was having financial difficulties at the time. The FPPC fined the official $1,500.100 This ended up being a very costly loan. Gifts Basic Rules State law limits the value of gifts that may be accepted by local elected officers, local agency employees designated in the agency's conflict of interest code, elected or appointed members of �..✓' the governing board of a special district, and candidates for any of these offices or positions.101 If the gift limitation applies, an official may not accept gifts from any one source totaling more than $340 in a calendar year.102 (The gift limit is modified every two years to reflect changes in the Consumer Price Index; the Fair Political Practices Commission typically has current information on the gift limitation.) The Political Reform Act broadly defines"gift"to include any payment or other benefit received (including meals), by a public official unless the official provided something of equal or greater value in return.103 A gift includes a rebate or discount in the price of anything of value unless the rebate or discount is made in the regular course of business to members of the public without regard to an individual's public official status (such as frequent flier miles). 104 Cal.Gov't Code§83116. Cal.Gov't Code§91012. 10° In re:Rodolfo Garcia,FPPC No.93/258(1994). 101 See Cal.Gov't Code§89503. 102 2 Cal.Code of Regs.§ 18940.2. 703 Cal.Gov't Code§82028(a). 10'Cal.Gov't Code§82028(a). Consequences of Violation These restrictions are part of the Political Reform Act. Violations of these laws are punishable by both criminal and civil sanctions, depending on the severity of the violation and the degree of intent to violate the law that enforcement entities are able to demonstrate.105 Criminal Sanctions. A knowing or willful violation of these requirements is a misdemeanor.106 A person convicted of a misdemeanor under these laws may not be a candidate for elective office for four years following the conviction.107 Such a conviction may also create an immediate loss of office under the theory that the official violated his official duties108 or create a basis for the grand jury to initiate proceedings for removal on a theory that failure to disclose constitutes willful or corrupt misconduct in office.109 Civil Sanctions. District attorneys, some city attorneys,the Fair Political Practices Commission or a member of the public can bring an action to prevent the official from violating the law.110 Actions brought by the Fair Political Practices Commission relating to gift limits can result in monetary penalty of$10,000 or three times the amount received, whichever is greater.'11 If the action is brought by a member of the public, the violator may have to reimburse the costs of the litigation, including reasonable attorneys fees.'12 Exceptions to Rules There are a number of exceptions to the gift limit:: • Gifts from a spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother or sister-in-law, aunt, uncle, niece, nephew,or first cousin or the spouse of any of these people,unless he or she is acting as an agent or intermediary for another person who is the true source of the gift;113 • Gifts of hospitality involving food, drink or occasional lodging received in a person's home(this is known as the"home hospitality rule") when the individual or a member of his or her family is present;114 and 106 See generally Cal.Gov't Code§§91000 and following. '06 See Cal.Gov't Code§91000(a). for See Cal.Gov't Code§91002. 708 See Cal.Gov't Code§ 1770(h)(providing that a vacancy occurs upon conviction of a felony or of any offense involving a violation of official duties). 109 Cal.Gov't Code§§3060-3074(providing for proceedings to be brought by the grand jury for removal from office). 10 Cal.Gov't Code§§83116,91001(b),91001.5,91004,91005,91007. 111 Cal.Gov't Code§91000(b). "Z Cal.Gov't Code§91012. 713 Cal.Gov't Code§82028(bx3);2 Cal.Code Regs.§ 18942(a)(3). I 16 2 Cal.Code Regs.§ 18942(ax7). • Gifts approximately equal in value exchanged on holidays, birthdays or similar occasions.115 Also excluded from the gift limits are informational materials (books,reports, calendars, pamphlets and periodicals)116 and inheritances."7 Personalized plaques and trophies with a value of less than $250 are also exempt.'18 WHAT To DO ABOUT UNWANTLI) GIFTS ? Some local officials and agencies have adopted and publicize a"no gift"policy to discourage gifts. For example,they place a sign on their office doors explaining that,while they appreciate the thought,their policy is to not accept gifts. If you receive an unwanted gift,you may within 30 days of receiving the gift:119 1) Return the gift unused; 2) Deliver the gift to a non-profit organization without claiming the gift as a tax deduction(the non- profit must be exempt from taxation under section 501(c)(3)of the Internal Revenue Code);or 3) Reimburse the gift-giver for the fair market value of the gift. [Pull Quote: The public is aware that those with business before an agency will attempt to curry favor with decision-makers and that these efforts may interfere with a public official's responsibility to make decisions solely based on the public's interests.] 15 2 Cal.Code Regs.q 18942(a)(8). "s Cal.Gov't Code§82028(b)(1). "'Cal.Gov't Code§82028(b)(5). 1B Cal.Gov't Code§82028(b)(6). 79 Cal.Gov't Code§82028(b)(2);2 Cal.Code of Regs.Q 18943. Travel Payments ' Basic Rules Travel Payments from Non-Transportation Companies. Travel payments from non- transportation companies are generally subject to the gift rules and must be reported on one's Statement of Economic Interests as such. Travel Passes from Transportation Companies. With respect to travel provided by transportation companies, state law strictly forbids elected and appointed public officials from accepting free or discounted travel from transportation companies.12() This prohibition applies to all personal or business travel, whether intrastate, interstate or foreign. The prohibition applies to both elected and appointed public officers but not to employees. 21 The Attorney General has opined that the prohibition applies when the free or discounted travel was provided due to the person's holding of public office, but the prohibition does not apply if the official received the free or discounted travel as any other member of the public would have.122 For example,the prohibition applied when an airline gave a first-class upgrade to 20 prominent local citizens, and one of those citizens was the mayor. Further, the mayor could not escape the prohibition by paying for the value of the upgrade when he learned of the prohibition.123 Consequences of Violation Travel Payments from Non-Transportation Companies These restrictions are part of the Political Reform Act. Violations of these laws are punishable by both criminal and civil sanctions, depending on the severity of the violation and the degree of intent to violate the law that enforcement entities are able to demonstrate.124 Criminal Sanctions. A knowing or willful violation of these requirements is a misdemeanor.125 A person convicted of a misdemeanor under these laws may not be a candidate for elective office for four years following the conviction.126 Such a conviction may also create an immediate loss of office under the theory that the official violated his official duties127 or create a basis for the 120 See Cal.Const.Art.X11,§7 ("A transportation company may not grant free passes or discounts to anyone holding an office in this State..." 121 See 3 Cal.Op.Att'y Gen.318(1944). 122 74 Cal.Op.Att'y Gen.26(1991). 123 76 Cal.Op.Att'y Gen. I (1993). 724 See generally Cal.Gov't Code§§91000 and following. 125 See Cal.Gov't Code§91000(a). 126 See Cal.Gov't Code§91002. 127 See Cal.Gov't Code§ 1770(h)(providing that a vacancy occurs upon conviction of a felony or of any offense involving I a violation of official duties). • Occurs in connection with an event at which one gives a speech or participates in a panel or seminar. 135 Note that reimbursement for lodging or meals is limited to the day immediately before, the day of, and the day immediately following the speech, panel or seminar.13 Necessary lodging and subsistence provided directly in connection with the speech are not reportable on one's Statement of Economic Interests. 137 • Other"Nominal" Benefits for Giving A Speech. Free admission, refreshments or similar non-cash nominal benefits one receives while attending an event at which one delivers a speech or participates in a panel or seminar is similarly exempt during the l event, regardless of whether the event is inside or outside of California. 38 These travel payments are not reportable as gifts or income on one's Statement of Economic Interests. • Other Government-Related Trips. Reimbursement for travel within the United States which is • Related to a public policy purpose; and • Is paid for by a governmental, educational or charitable organization. 139 Note that these payments, while not considered gifts, may be reportable as income on one's Statement of Economic Interests. For example, the Fair Political Practices �✓ Commission has ruled that provision of meals and travel expenses in conjunction with an official's service on a local agency, association is reportable as income on one's Statement of Economic Interests. 0 • Bona Fide Business Trips. Reimbursement for travel that is reasonably necessary in connection with a bona fide business purpose and that satisfies the criteria for deduction as a business expense for income tax purposes. 141 For reporting purposes, these travel payments are considered a part of salary and are reported as income on one's Statement of Economic Interests.142 135 See Cal.Gov't Code§89506(a). 136 See Cal.Gov't Code§89506(a)(1). 137 See 2 Cal.Code of Regs.§ 18950.3. 139 2 Cal.Code Regs.§ 18950.3. 139 See Cal.Gov't Code§§89506(a)(2),(d)(2),82030(b)(2);2 Cal.Code of Regs.§ 18950.l(b),(d). 140 See Benninghoven FPPC Advice Letter,No.1-98-177(Nov. 12,1998). 101 See Cal.Gov't Code§89506(d)(3). 142 Limitations and Restrictions on Gifts,Honoraria, Travel and Loans A Fact Sheet for Local Elected Officers and Candidates for Local Elective Offices,Local Officials Specified in Government Code Section 87200.Judicial Candidates.Designated Employees of Local Government Agencies,Fair Political Practices Commission(1999). Travel Passes from Transportation Companies The prohibition did not apply when: • The elected official received a first-class airline upgrade because he was going on his honeymoon, and the upgrade was given to all honeymooners.143 • An elected official received free airline travel because he was the spouse of a flight attendant. 144 • An elected official exchanged frequent-flier miles for an airline ticket because the earning of frequent-flier miles is done without regard to the person's status as an officeholder. 14 RESOURCES For more information,please see "Limitations and Restrictions on Gifts,Honoraria,Travel and Loans," a Fair Political Practices Commission information sheet specifically for local officials available online at www.fppc.ca.gov. Because of the complexity of these rules, close consultation with one's agency's legal counsel or the Fair Political Practices Commission is important. Alleged Wining and Dining Attracts Unfavorable Media Attention The public and the media tend to be very skeptical of those who allow themselves to be wined and dined by those with business before the agency. For example,northern California newspaper ran a full-page article on one official's alleged activities, which included instances in which the newspaper charged the official with accepting meals and gifts from those with business before the agency.146 The official denied any significant impropriety, but it is certainly not the kind of attention anyone wants from the media. Some public officials adopt a flat,no-gifts policy to avoid any questions about their decision-making. Speaking and Other Fees 143 Id. 144 67 Cal.Op.Att'y Gen.81 (1984). 141 80 Cal.Op.Att'y Gen.146(1997). 1 / 146"Councilman Appears to Have Violated Ethics Laws,"San Jose Mercury News(May 24,2004). �7•d Basic Rules State law also regulates the degree to which public officials may receive payments for giving a speech, writing an article or attending a public or private conference, convention, meeting, social event,meal or similar gathering.147 Generally such payments—which are known as honoraria-- are prohibited. The notion is that such communications are part of a public official's service. Any official who must file a statement of economic interest under state law(seepage")may not receive such payments.148 Local conflict of interest codes may specify additional people within an agency that also fall within the prohibition. If one receives an honorarium from someone who is unaware of the rules, there is a 30-day time limit for returning it.149 Consequences of Violation These restrictions are part of the Political Reform Act. Violations of these laws are punishable by both criminal and civil sanctions, depending on the severity of the violation and the degree of intent to violate the law that enforcement entities are able to demonstrate.150 Criminal Sanctions. A knowing or willful violation of these requirements is a misdemeanor.151 A person convicted of a misdemeanor under these laws may not be a candidate for elective office for four years following the conviction.152 Such a conviction may also create an immediate loss of office under the theory that the official violated his official duties153 or create a basis for the grand jury to initiate proceedings for removal on a theory that failure to disclose constitutes willful or corrupt misconduct in office.154 Civil Sanctions. District attorneys, some city attorneys, the Fair Political Practices Commission or a member of the public can bring an action to prevent the official from violating the law.155 Actions brought by the Fair Political Practices Commission relating to gift limits can result in monetary penalty of$10,000 or three times the amount received, whichever is greater.156 If the 147 See Cal.Gov't Code§89501(definition of honoraria). 1d8 See Cal.Gov't Code§89502(general prohibition). t49 See Cal.Gov't Code§89501(bx2). 15o See generally Cal.Gov't Code§§91000 and following. 15t See Cal.Gov't Code§91000(a). '62 See Cal.Gov't Code§91002. '57 See Cal.Gov't Code§ 1770(h)(providing that a vacancy occurs upon conviction of a felony or of any offense involving a violation of official duties). 154 Cal.Gov't Code§§3060-3074(providing for proceedings to be brought by the grand jury for removal from office). 155 Cal.Gov't Code§§83116, 91001(b),91001.5,91004,91005,91007. �� '56 Cal.Gov't Code§91000(b). action is brought by a member of the public, the violator may have to reimburse the costs of the litigation, including reasonable attorneys fees.157 Exceptions to Rules The exceptions to the general prohibition against honoraria are: • Payments Voluntarily Made to Charitable and Similar Organizations. A payment that is made directly to a bona fide charitable, educational, civic, religious, or similar tax- exempt non-profit organization.158 The donation may not be a condition for the speech, article or attendance and may not be claimed as a deduction for income tax purposes. The donation may not have a reasonably foreseeable financial effect on one or on any member of one's immediate family, and one may not be identified to the non-profit organization in connection with the donation. • Payments Deposited In Local Agency General Fund. An honorarium which is delivered to the local agency's general fund, without being claimed as a deduction from income for income tax purposes.'59 • Income From Bona Fide Occupation. Income earned for personal services if the services are provided in connection with a bona fide business,trade, or profession (such as teaching, practicing law, medicine, insurance, real estate, banking, or building contracting) and the services are routinely provided in connection with the trade, busine�/ or profession.1 so • Some Payments in Connection with a Speech or Panel Discussion. Some payments provided to an official at an event at which the official gives a speech, participates in a panel or seminar, or provides a similar service are exempt from the honoraria ban and are not considered "gifts"by the Political Reform Act. These include free admission to the event, refreshments and similar non-cash nominal benefits received at the event, necessary lodging and subsistence provided directly in connection with the speech, panel, seminar, or service, and transportation to the event (limited to within California). See discussion on travel payments above. RESO U RCES FOR • • For more information, the Fair Political Practices Commission has produced "Limitations and Restrictions on Gifts, Honoraria, Travel and Loans" and "Travel Guide for California Officials and 157 Cal.Gov't Code§91012. See 2 Cal.Code Regs.§18932.5(direct charitable contributions excluded from honorarium definition). 159 See Cal.Gov't Code§89501(bx2). 160 See Cal.Gov't Code§89501(bx 1). Candidates,"each of which is available online at www.fWc.ca.gov. Because of the complexity of these requirements,you should always seek legal advice when faced with all but the most basic gift,travel and honoraria issues. Two sources of such advice are the Fair Political Practices Commission and your public agency's attorney. Use of Public Resources for Personal Purposes Basic Rules State law forbids public officials from using public resources for personal purposes.161 "Public resources"include such things as 1) staff time, 2) office equipment(telephones, fax machines, photocopiers, and computers, and 3) office supplies (stationery, stamps, and other items). What is personal use? "Personal"use of public resources are activities that are for personal enjoyment, private gain or advantage.162 "Use"means the use of public resources that is substantial enough to result in a gain in advantage for the user and a loss to the local agency that can be estimated as a monetary value.163 The statute penalizes both intentional and negligent violations.164 161 See Cal.Penal Code§424;Cal.Gov't Code§8314. 162 Cal.Gov't Code§8314(bx 1). 163 Cal.Gov't Code§8314(b)(4). �/ 1B' Cal Gov't Code§8314(c). Consequences of Violation Public officials face both criminal and civil penalties for using public resources for.personal benefit.165 Criminal penalties include a two to four year state prison term and permanent disqualification from public office.166 Civil penalties include a fine of up to $1,000 per day on which the violation occurs,plus three times the value of the resource used.167 At some point,personal use of public resources becomes embezzlement. Embezzlement involves appropriating for any use or purpose any agency property, which an official has in the official's possession, or under his control by virtue of his trust, or secretes it with a fraudulent intent to appropriate it to such use or purpose.168 A public officer convicted of embezzlement is guilty of a felony punishable by imprisonment; in addition,that person is ineligible thereafter to hold public office within Califomia.169 Embezzlement may constitute"willful misconduct"which warrants the removal from office of a public officer, or it may be prosecuted as a felony violation. Exceptions to Rules There are very narrow exceptions for"incidental and minimal"use of resources. The purpose of these exceptions appears to be more to prevent traps for the unwary; they do not constitute an affirmative authorization for personal use of public resources. An"occasional telephone call"is an example of an incidental and minimal use of public resources.170 Special Issue: Use of Agency Letterhead or Titles Agencies differ on the extent to which public officials have access to and use of agency Ietterhead for correspondence. For example, some agencies prohibit any use of letterhead or the agency logo without governing body approval.171 Others prohibit the use of letterhead(or logo) for certain purposes, for example,personal purposes or endorsement of candidates.172 Some provide agency officials with more informal note cards or personal stationery for individual correspondence. 165 See Cal.Penal Code§424;Cal.Gov't Code§8314. 166 Cal.Penal Code§424. 167 Cal.Gov't Code§8314(c)(1). '66 Cal.Penal Code§504. 169 Cal.Penal Code§514. 770 Cal.Gov't Code§8314(b)(1). 171 See,e.g., San Diego County Water Authority Administrative Code,§ 1.08.10(d)("The official seal and any emblem,symbol,logo or other distinctive mark of the Authority shall be used solely for Authority purposes and programs,unless otherwise authorized by the Board. Private, commercial or non-commercial use of the official seal,mark,name or identity of the Authority is prohibited.").The code is available online at: http://www.sdcm.o[g/about/wht)-adminr,ode.phtmi. ` ) r72 See,e.g.,City of Lawndale,Resolution 2090(1981). �rs� An agency policy is the first source of guidance for a public official. Even if a particular use of agency letterhead is not prohibited, the ethical question for an official to consider is whether the use of agency letterhead leads the reader to believe that the agency itself has endorsed the statements contained in the correspondence. A similar question is whether the recipient of the correspondence might infer from the use of official letterhead that the correspondence has some official imprimatur or endorsement(for example, on a letter of recommendation). Similar ethical questions apply to the use of titles and agency logos. These issues are why some agencies simply prohibit all use of agency letterhead and logos without governing body approval. REsOUIZCE FOR • R • For a more thorough discussion of this issue and the issues that arise under it,see Of Cookie Jars and Fishbowls..4 Public Official's Guide to Use of Public Resources, available at www.ilsg.org trust For specific questions,contact your public agency's attorney. (Pull Quote: Public officials serve as stewards of public agency resources; these resources may not be used for the personal or political benefit of public officials.] Officials Get Jail Time for Misuse of Public Resources After a lengthy—and extensively publicized—investigation, a former mayor and city manager each received three-year jail sentences for personal use of public resources. The mayor was accused of using his city-issued credit card to pay for golf rounds, hotel rooms, clothing and in-room movies, among other things. He also was accused of taking cash advances for city business expenses and then charging those items to his city credit cards and pocketing the money. The city manager was accused of using more than $5,000 in city funds to take his son's basketball team to a tournament in Florida. He repaid the money,but only after he came under investigation, prosecutors said.173 According to newspaper accounts, at the sentencing, the mayor tried to explain how he went from being a respected community leader to criminal sentencing. "I just got lost," he said. "Lost in trying to be somebody."174 173"Ex-...Officials Sentenced,"Los Angeles Times(May 15,2004). �i 174 ...Mayor Sentenced,"Los Angeles 7mes(May 14,2004). Expense And Expense Reimbursement Issues General Rules There is no dispute that the stipends most elected officials receive cannot compensate them adequately for the time they spend on official duties. It is also well known that those who make careers in public service (for example, city managers and county or district administrators) usually can earn more in the private sector. To close the gap, it can be tempting to look at the opportunity to travel and incur other expenses on the agency's tab as a"perk"of office--particularly for those familiar with norms in the private sector. This runs afoul of two laws: 1) laws limiting public official compensation, and 2) laws limiting reimbursement of expenses to those that are reasonable and necessary. Limits on Public Official Compensation Typically there is a legal limit on public official compensation levels, either in state or local statutes. Public officials,particularly elected ones,may only collect and retain such compensation that the law allows.175 Any extra must be refunded.176 As protectors of the public purse, courts generally take a strict approach to public official compensation limits.177 Limits on Expense Reimbursement There are a number of statutes that allow reimbursement of officeholder expenses to varying degrees.178 The law relating to water district directors, for example, generally allows reimbursement of expenses incurred in the performance of official duties, as long as those duties are authorized or required by the governing board (another good argument for an expense reimbursement policy).179 Hospital district directors operate under a similar statute.180 The 175 For example,the salary of council members of general law cities is controlled by Government Code section 36516(a),which permits a city council to establish by ordinance a salary up to a ceiling determined by the city's population. The electorate may approve a higher salary. Cal. Gov't Code§36516(b). A council member appointed or elected to fill a vacancy is compensated in the same amount as his or her predecessor. A directly-elected mayor may receive additional compensation with the consent of the electorate or by ordinance of the city council. Cal.Gov't Code§36516.1. 16 County of San Diego v.Milotz,46 Cal.2d 761,767,300 P.2d 1,4(1956)(action to recover fees from court reporter for faulty work). 177 id. 17'There is one general statute that applies to all local agencies that at least one appellate court has characterized as an"authorization"for expense reimbursement. See Citizen Advocates,Inc.v.Board ojSupervisors, 146 Cal.App.3d 171, 178,194 Cal.Rptr.61,66(1983) (Government Code"Section 1091.5,subdivision(a)(2),authorizes reimbursement of'actual and necessary expenses incurred in the performance of official duty."'). More precisely,this code section creates an exception for expense reimbursement decisions from the general prohibition of self-dealing. See Cal.Gov't Code§ 1090. '""'See,e.g.,Cal.Water Code§34741(For California Water Districts:"Each director shall receive...expenses incurred in the performance of his duties required or authorized by the board");Cal Water Code§30507(county water district directors receive expenses incurred in performance of duties required or authorized by board);Cal.Water Code§30507.1(Contra Costa county water district directors receive expenses incurred in performance of duties required or authorized by board);Cal.Water Code§21 166(irrigation district directors receive actual and necessary expenses when acting under orders of the board);Cal.Water Code§71255(municipal water district directors receive any expenses incurred in the performance of duties required or authorized by the board). "'See Cal.Health&Safety Code§32103(allowing travel and incidental expenses incurred by hospital district board members in the ` / performance of their official duties as approved by the board). �d statutes relating to county supervisors, however, only mention reimbursing for travel-related expenses.181 Somewhere in between are city council members in general law cities, who may be reimbursed for: • "Actual and necessary" expenses which are • Incurred in the performance of the councilmember's official duties.182 There are a number of statutory provisions that set similar standards for reimbursement of public employee expenses.183 There is also a law that allows automobile mileage or allowances for certain kinds of local officials.184 What constitutes "actual and necessary" expenses? Ultimately,the governing board determines what is necessary.185 An agency expense policy offers an opportunity to do this. It also enables the governing body to agree on what kinds of expenditures are and are not appropriate. With respect to meals, the policy should: • Make it clear under what limited circumstances the agency will pay for officials' and others' meals. • Be explicit about the necessity underlying those circumstances. • Require documentation that the meal in question meets the requirements of the policy. To address public concerns about what might be considered extravagant meals being paid for at public expense, it may be useful to refer to Internal Revenue Service guidelines for daily meal expenses as a yardstick. These guidelines are adjusted for cost of living differences in different areas and are available at www.policyworks.gov/perdiem. The Institute's sample expense policy (available at www.ils .or trust) incorporates these suggestions. In the absence of an expense policy, consulting your agency attorney may be helpful. "'Cal.Gov't Code§25008(county supervisors are allowed expenses associated with traveling outside county on county business and to state association meeting)§25305(county may purchase automobiles for use of county officers and employees in lieu of mileage;county board may allow officers and employees using county automobiles their actual and necessary expenses when traveling on county business). ixr See Cal.Gov't Code§36514.5(city council members);65 Cal.Op.Att'y Gen.517,521(1982)(interpreting Government Code section 36514.5).See also Cal.Health&Safety Code§33114(similar authority as to expenses of redevelopment agency members). "'See,e.g.,Cal.Educ.Code§44032(authorizing school district governing boards to provide for actual and necessary employee expenses incurred in the course of providing services);§44033(authorizing governing boards to provide for automobile expense reimbursement on a monthly or mileage basis). r"'See Cal.Gov't Code§1223(allowing an allowance or mileage rate for state,county,judicial district,or city officer's automobile owned, rented or used in performance of duties). �� r"'See 61 Cal.Op.Att'y Gen.303(1978). Consequences of Violation �d State Law Penalties Public officials face both criminal and civil penalties for using public resources for personal benefit.188 Criminal penalties include a two to four year state prison term and permanent disqualification from public office.187 Civil penalties include a fine of up to $1,000 per day on which the violation occurs, plus three times the value of the resource used.188 At some point, personal use of public resources becomes embezzlement. Embezzlement involves appropriating for any use or purpose any agency property, which an official has in the official's possession,or under his control by virtue of his trust, or secretes it with a fraudulent intent to appropriate it to such use or purpose.189 A public officer convicted of embezzlement is guilty of a felony punishable by imprisonment; in addition, that person is ineligible thereafter to hold public office within California.190 Embezzlement may constitute"willful misconduct"which warrants the removal from office of a public officer, or it may be prosecuted as a felony violation. Penalties Under Federal Law Federal prosecutors have been known to treat the receipt of illegitimate expense reimbursements or advances as income to the official. Because the official has not typically reported these payments as such on their tax returns, the official then becomes subject to an action for income tax evasion. The tax code is notoriously complex and its penalty sections are no exception. The general penalty for willful income tax evasion is a fine of up to $100,000 and up to five years in prison, or both. Those convicted are also responsible for paying the costs of prosecution.191 Failure to report information to the tax authorities is punishable by fines of up to $25,000 and/or a year in federal prison, plus the costs of prosecution.192 If the postal service was used in any way, such use can also become the basis for a charge of mail fraud.193 Mail fraud is punishable by up to five years in federal prison per violation and/or a fine of the greater of 1) twice the gain to the violator or 2) $250,000 per violation.194 1 N"See Cal.Penal Code§424;Cal.Gov't Code§8314. 1 8 7 Cal.Penal Code§424. '"Cal.Gov't Code§8314(cx 1). "'Cal.Penal Code§504. ""Cal.Penal Code§514. '9'See 26 U.S.C.§7201. '9'See 26 U.S.C.§7203. See generally 18 U.S.C.§ 1341 and following. '�`See generally 18 U.S.C.§3571(b)and(d). V�s� i If the program has any degree of federal funding, the federal criminal laws against corruption and embezzlement195 will also apply. Special Issues Use of Agency Credit Cards for Personal Expenses Agency officials should think carefully about the wisdom of using agency credit cards for personal purchases—even if one plans to subsequently reimburse the agency. While there is no specific legal precedent indicating such a practice is unlawful, there also is no specific legal precedent indicating that such practice is lawful. The risk of credit card misuse, either intentional or inadvertent, is high. Because of this, a number of agencies have stopped issuing credit cards to officials or employees. Credit Card Purchases Lead to Federal Income Tax and Mail Fraud Charges Two special district officials were indicted in federal court for, among other things, income tax evasion/conspiracy to defraud the United States government.196 The indictments were based on the theory that the officials had made personal purchases on district credit cards that, in effect,became a form of income to them that was not reported on their income tax forms. Because credit card billings and payment used the U.S. mail, �..✓ the indictment also includes a count of federal mail fraud. Spouse Travel In the private sector, company officials often travel with their spouses on business trips at company expense. Not so in the public sector. The Attorney General has concluded that this would constitute a gift of public funds because there is no direct and substantial public purpose in paying for the expenses of a public official's spouse.197 The specific question related to whether it would be proper for a hospital district to pay for a district director's spouse to attend a conference on official business. The Attorney General said no. This, of course, does not mean that your spouse cannot accompany you to official functions. It just means that this becomes a personal expense. 19'See,for example. 18 U.S.C.§641(crime of embezzlement against the United States),648(misuse of public funds). 'ss U.S.v.Kramer and Ness,No. (indictment filed in the Eastern District of California). ' '75 Cal.Op.AWy Gen.20(1992)(finding paying a spouse's expenses to a conference violates both Government Code section 1090 and constitutional prohibitions against gifts of public funds). See also 65 Cal.Op.Att'y Gen.517,521(1982)(finding Government Code section 36514.5 does not authorize reimbursement of the expenses of any person other than a member of the city council). See also Albright v.City of �i South San Francisco,44 Cal.App.3d 866,869-870,118 Cal.Rpir.901(1975).(unauthorized reimbursement is illegal gift). Picking Up the Tab for Others It is common for business people to extend hospitality and make gifts and charitable contributions to generate goodwill for the company. However, California's constitution specifically prohibits"gifts"of public resources.198 This prohibition also applies to an agency making gifts to its officials and employees.199 The starting point of the Attorney General's analysis was that state law says that council members may be reimbursed for actual and necessary expenses incurred in the performance of their official duties.200 It is important to note that the law authorizes--but does not require— reimbursement of expenses; the ultimate decision on whether and under what circumstances to reimburse expenses is made by the council itself.211 The Attorney General concluded that expenses for other people's meals, even when the purpose of the meal is to discuss city business or legislative issues, is not a"necessary" expense.202 An expense policy with appropriate findings by the agency governing body may address the Attorney General's concerns. A sample policy is available at www.ilsg.or trust. See Cal.Const.art.XVI,§6("nor shall it[the Legislature)have power to make any gift or authorize the making of any gift,of any pubic money or thing of value to any individuals,municipal or other corporation whatever,..."). See also Albright v.City ojSouth San Francisco,44 Cal.App.3d 866,870,118 Cal.Rptr.901,902(1975)(making the connection between council member expenses and the prohibitions against a gift of public funds). Although the prohibition is directed to the Legislature,the courts'theory is that,since general law cities,counties and special districts derive much of their authority from the Legislature,such local agencies also do not have the power to make gifts of public funds. 'w There is an additional prohibition against granting extra compensation for work already performed by public officers,public employers or contractors. See Cal.Const.art.IV,§ 17;an.XI,§ 10. Cal.Gov't Code§36514.5. 65 Cal.Op.Att'y Gen.517,523(1982). zn2 85 Cal.Op.Att'y Gen.210(2002). Good-Ethics-Is-Good-Politics Note The public views your agency's money as the public's money. Particularly in these tight budget times, the wisest approach is to treat your agency's pocketbook as carefully you would your own. A good question to ask yourself with respect to any expenditure is whether you would feel comfortable explaining it to any of the following: 1)your next door neighbor,2)the local taxpayers' association or 3)the media. RESOURCE FOR FuRTHER INFORNIATION For a more thorough discussion of this issue and the issues that arise under it,see Of Cookie Jars and Fishbowls:A Public Official's Guide to Use of Public Resources, available at www.ilsg.org/trust For specific questions,please contact your public agency's attorney. Use of Public Resources for Political Purposes General Rules The same statutes that prohibit the use of public resources for personal benefit also prohibit the use of such resources for campaign purposes.203 The prohibition applies to campaigns to elect candidates and campaigns in support of or opposition to ballot measures. Efforts to take advantage of one's office for political gain (for example,by currying favor with individuals or groups) also may run afoul of other legal principles. One is the state constitution's prohibition against gifts of public funds. 204 The other is the limitation on expense reimbursement to those that are reasonable and necessary.205 A locally adopted expense policy enables local agency officials to have a public discussion and reach agreement on what kinds of expenses are appropriate uses of public resources.205 Such a policy can also protect officials from having a decision being second-guessed in court. Z"Cal.Penal Code§424;People v.Battin,77 Cal.App.3d 635,143 Cal.Rptr.731(1978)(successful criminal prosecution of county supervisor for misusing public funds for improper political purposes),superceded on other grounds by People v. Conner,34 Cal.3d 141,193 Cal.Rptr. 148 (1983). See also Cal.Gov't Code§8314("`Campaign activity'means an activity constituting a contribution as defined in Section 82015 or an expenditure as defined in Section 82025.'Campaign activity'does not include the incidental and minimal use of public resources,such as equipment or office space,for campaign purposes,including the referral of unsolicited political mail,telephone calls and visitors to private political entities."). 214 See Cal.Const.art.XVI,§6("nor shall it[the Legislature]have power to make any gift or authorize the making of any gift,of any pubic money or thing of value to any individuals,municipal or other corporation whatever,..."). See also Albright v.City of South San Francisco,44 Cal.App.3d 866,870,118 Cal.Rptr.901,902(1975)(making the connection between council member expenses and the prohibitions against a gift of public funds). Although the prohibition is directed to the Legislature,the courts'theory is that,since general law cities,counties and special districts derive much of their authority from the Legislature,such local agencies also do not have the power to make gifts of public funds. 85 Cal.Op.Att'y Gen.210(2002). ziM See Roseville v. Tulley,55 Cal.App.2d 601,60M9, 131 P.2d 395,400(1942)(finding that judicial second-guessing of a city's determination �/ of what constitutes a public purpose would be an unwarranted intrusion into the legislative function of a city council). Consequences of Violation ) Public officials face both criminal and civil penalties for using public resources for personal benefit.207 Criminal penalties include a two to four year state prison term and permanent disqualification from public offiice.208 Civil penalties include a fine of up to $1,000 per day on which the violation occurs,plus three times the value of the resource used.209 At some point, personal use of public resources becomes embezzlement. Embezzlement involves appropriating for any use or purpose any agency property, which an official has in the official's possession, or under his control by virtue of his trust, or secretes it with a fraudulent intent to appropriate it to such use or purpose.210 A public officer convicted of embezzlement is guilty of a felony punishable by imprisonment; in addition, that person is ineligible thereafter to hold public office within California.21 1 Embezzlement may constitute "willful misconduct"which warrants the removal from office of a public officer, or it may be prosecuted as a felony violation. Special Issues Mass Mailings at Public Expense The law reflects the notion that it is both unfair and unethical for public officials to use public resources to enhance their visibility and name identification with potential voters. For this reason, state law forbids sending mass mailings at public expense.212 The Fair Political Practices Commission has defined "mass mailings"as sending 200 or more identical pieces that contain the name or pictures of elected officials except as part of a standard letterhead.2i3 Even public agency newsletters that contain elected officials' names or pictures fall within the prohibition. These restrictions are part of the Political Reform Act, which means the Act's civil and criminal sanctions apply(misdemeanor for knowing or willful violations,214 fines of up to $5,000 per violation,215 and possible reimbursement the costs of any litigation initiated by private individuals, including reasonable attorneys fees 216). Typically, once the official becomes aware 2117 See Cal.Penal Code§424;Cal.Gov't Code§8314. 2""Cal.Penal Code§424. 2119 Cal.Gov't Code§8314(c)(I). 21"Cal.Penal Code§504. 211 Cal.Penal Code§514. 212 See Cal.Gov't Code§89001. 21'See 2 Cal.Code of Regs.§ 18901. 214 See Cal.Gov't Code§91000(a). 215 Cal.Gov't Code§83116. 215 Cal.Gov't Code§91012. �..: of the violation, he or she will reimburse the agency for the costs of the mailing, so it has not been made at public expense. Office Holder-Directed Expenditures Also risky is the practice that may exist in some jurisdictions where individual office holders can direct that a certain amount be given to a particular charity (possibly as part of an annual officeholder expense budget). Any decision to give public money to private charities should be made by an agency governing body, so the requisite findings on the benefit to the agency and the community it serves can be made. One public agency's practices in this regard came under scrutiny, even though the agency put safeguards in place to make sure the funds were appropriately spent. The president of the local taxpayers' association suggested that using such monies for charitable contributions involves"a thin line"and is "almost like they're buying votes."2i7 Although the newspaper noted that the funds could not be used for campaign purposes, the newspaper observed that such funds were used to boost officeholders' public profiles. Charitable Donations The California Constitution's prohibition against gifts of public funds has implications for charitable giving by public agencies.218 As Scrooge-like as it seems, a public official should �...i not assume it is appropriate for public agencies to make gifts to charitable organizations. Here are some circumstances under which a public agency may contribute to a charity: o When the charity provides a service that compliments or enhances one the public agency provides itself; ci When there is an identifiable secondary benefit to the public agency; or v When the charity provides a service the public agency could provide but chooses not to. In all instances, the governing body should make findings in the minutes about the benefits to the agency associated with providing resources to the charity. Campaign Support from Agency Staff California law has a strong tradition of separating the electoral process from decisions relating to public employment. Therefore there are a number of laws designed to insulate public employees 21'"Here's$50,000—Spend it Well,"Sacramento Bee,November 23,2003,pages B 1,B6. See generally McQuillin,Municipal Corporations,0 39.25(3d ed)("Appropriations to charitable or nonprofit associations,without considcration[something in return],cannot be made.") from having to participate in the electoral activities of candidates for their agency's governing board. State law forbids candidates and officials from conditioning employment decisions on support of a person's candidacy.219 Compensation decisions may not be tied to political sport either.220 Soliciting campaign funds from agency officers or employees is also unlawful. 1 No penalties are specified in the code sections creating these prohibitions. Presumably violations would fall into the catchall penalty for misconduct in office,which is loss of office.222 Note too that members of the International City County Management Association are specifically prohibited from becoming involved in elections for their governing bodies.223 21,See Cal.Gov't Code§3204,which reads as follows: No one who holds,or who is seeking election or appointment to,any office or employment in a state or local agency shall, directly or indirectly,use,promise,threaten or attempt to use,any office,authority,or influence,whether then possessed or merely anticipated,to confer upon or secure for any individual person,or to aid or obstruct any individual person in securing,or to prevent any individual person from securing,any position,nomination,confirmation,promotion,or change in compensation or position, within the state or local agency,upon consideration or condition that the vote or political influence or action of such person or another shall be given or used in behalf of,or withheld from,any candidate,officer,or parry,or upon any other corrupt condition or consideration. This prohibition shall apply to urging or discouraging the individual employee's action. Zza See Cal.Gov't Code§3205.5,which reads as follows: No one who holds,or who is seeking election or appointment to,any office shall,directly or indirectly,offer or arrange for any increase in compensation or salary for an employee of a state or local agency in exchange for,or a promise of,a contribution or loan to any committee controlled directly or indirectly by the person who holds,or who is seeking election or appointment to,an office. A violation of this section is punishable by imprisonment in a county jail for a period not exceeding one year,a fine not exceeding five thousand dollars(S5,000),or by both that imprisonment and fine. ZZr See Cal.Gov't Code§3205. 222 See Nussbaum,214 Cal.App.3d at 1597-98,263 Cal.Rpir.at 365-66. 22.°The ICMA Code is available from the ICMA website at:httn://www I,icma.org/upload/library!2002-12113B073DCA-DU09-43B6-9061- E8434D539699).rtf. RESOURCES • • For a more thorough discussion of this issue and the issues that arise under it,see Of Cookie Jars and Fishbowls:A Public Official's Guide to Use of Public Resources,available at www.iisg.org/trust. For specific questions,contact your public agency's attorney. [PuII Quote: Efforts to take advantage of one's office for political gain (for example,by currying favor with individuals or groups) also may run afoul of a number of legal principles.] Newspaper Criticizes Agency's Charitable Activities One public agency's practices came under scrutiny, even though the agency put safeguards in place to make sure the funds were appropriately spent. This jurisdiction had a practice that may exist in others, where individual office holders can direct that a certain amount be given to a particular charity(possibly as part of an annual officeholder expense budget). The president of the local taxpayers' association suggested that using such monies for charitable contributions involves "a thin line" and is "almost like they're buying votes.'224 Although the newspaper noted that the funds could not be used for campaign purposes, the newspaper observed that such funds were used to boost officeholders' public profiles. Local Official Prosecuted for Misuse of Office Resources After her staff complained, a local official found herself in protracted legal battles relating to charges she used her public resources for business and political campaign purposes. Among the charges were that the official used staff time, office space and office equipment for both her law practice and her re-election campaign. The appellate court also rejected arguments that the official did not violate the law because she offered to reimburse her agency.225 w� 22 4"Here's$50,000—Spend it Well,"Sacramento Bee,November 23,2003,page Bl,B6. 225 People v.Bishop,2000 WL 520878(1st Dist.2000). PRINCIPLE #3: TRANSPARENCY AND FAIRNESS IS KEY Key Tliings to Know What the Law is Trying to Achieve • The public expects public agency processes to be transparent, which the public equates with having nothing to hide. • The public expects public officials to fairly and impartially allocate the benefits and burdens of public agency regulations and programs, without favoring family, friends or supporters. What This Means Public officials => Must conduct the public's business in open and publicized meetings,except for the limited circumstances when the law allows closed sessions. => Must allow the public to participate in meetings. => Must allow public inspection of documents and records generated by public agencies,except when non- disclosure is specifically authorized by taw. Cannot participate in quasi-judicial proceedings in which they have a strong bias with respect to the parties or facts. => Cannot participate in decisions that will benefit their immediate family(spouse or dependent children). Cannot simultaneously hold certain public offices or engage in other outside activities that would subject them to conflicting loyalties. => Cannot participate in entitlement proceedings—such as land use permits—involving campaign contributors (does not apply to elected bodies) => Cannot solicit campaign contributions of more than $250 from permit applicants while application is pending and for three months after a decision. => Must disclose information about significant($5000 or more)fundraising activities for legislative, governmental or charitable purposes. Speak with your agency counsel about the specifics of these requirements as they may apply to our situation. Conducting the Public's Business in Public General Rules California's open meeting law—commonly referred to as the Brown AU226—provides the legal minimum for local governmental transparency in decision-making. All local legislative bodies— which include many advisory committees—must conduct their business in an open and public meeting to assure that the public is fully informed about local decisions.227 Under the Brown Act, a"meeting" is defined as any situation involving a majority of a local legislative body's members in which business is transacted or discussed. In other words, a majority of the governing body cannot talk privately about an issue before the body no matter how the conversation occurs, whether by telephone or e-mail or at a local coffee shop.228 The following are some key points about the Brown Act: • Meetings. A "meeting"as any situation involving a majority of the governing body in which business is transacted or discussed. This applies not only to the governing body itself,but also to any advisory groups or committees created by that body that are composed of a quorum (majority) of governing body members, have a continuing subject-matter jurisdiction,or have a meeting schedule fixed by formal action of the governing body.229 • Serial Meetings. One thing to watch for is unintentionally creating a "serial"meeting—a V.�J series of communications that result in a majority of governing body members having conferred on an issue. For example, if two members of a five-member governing body consult outside of a public meeting (which is not in and of itself a Brown Act violation) and then one of those individuals consults with a third member on the same issue, a majority of the body has consulted on the same issue. The communication does not need to be in person. Sending or forwarding e-mail can be sufficient to create a serial meeting. • Posting and Following the Agenda. In general, the public officials may only discuss and act on items included on the agenda. However, governing body members or staff may briefly respond to questions or statements during public comments that are unrelated to the agenda items. Officials can also make requests to staff to place a matter on the agenda for a subsequent meeting. • Permissible Gatherings Not every gathering of governing body members amounts to a violation. For example, an open meeting violation would not occur if a majority of the governing body attended the same educational conference or attended a meeting not organized by the local agency. Nor is attendance at a social or ceremonial event in and of 226 Cal.Gov't Code§§54950 and following. u'See Cal.Gov't Code§54952.2(a);Cal.Gov't Code§54954.2(a). 72'Cal.Gov't Code§54952.2(b). 1 , 22'Cal.Gov't Code§54952(b). �ti� �..✓ itself a violation. The basic factor to keep in mind is that a majority of the governing body members cannot meet and discuss business except at an open and fully noticed meeting. • Closed Sessions. The Brown Act includes provisions for closed discussions under very limited circumstances. For example, a governing body may meet in a closed session to receive advice from its legal counsel regarding pending or reasonably anticipated litigation. However, the reasons for holding the closed session must be explained in the agenda.230 Because of the complexity of the Brown Act, close consultation with an agency's legal advisor is necessary to ensure that its requirements are observed. Consequences of Violations Nullification of Decision.As a general matter, decisions that are not made according to the Brown Act are void.231 After asking the agency to cure the violation, either the district attorney or any interested person may sue to have the action declared invalid.232 Costs and attorneys fees may be awarded to those who successfully challenge Brown Act violations.233 Criminal Sanctions. Additionally, governing body members who intentionally violate the Brown Act may be guilty of a misdemeanor. 3a The penalty for a misdemeanor conviction is imprisonment in county jail for up to six months or a fine of up to $1,000 or both.215 `�..✓ Preventative Measures. Either the district attorney or any interested person may sue to prevent violations of the Brown Act.236 Another remedy, under certain circumstances, is for a court to order that all closed sessions be tape-recorded.2 Costs and attorneys fees may be awarded.23a [Pull quote: The Brown Act provides the legal minimum for local governmental transparency in decision-making.] Cal.Gov't Code§54956.9. 21 Cal.Gov't Code§54960.1. 272 Cal.Gov't Code§54960.1. 27 Cal.Gov't Code§54960.5. 234 Cal.Gov't Code§54959. '"See Cal.Penal Code§19. 216 Cal.Gov't Code§54960. 21 Cal.Gov't Code§54960. 231 Cal.Gov't Code§54960.5. Open and Public III•A User'.r Guide to the Ralph M. Bmzm Act, 2000. Available on the League of California `as1 Cities website at www.cacities.org or by calling(916) 658-8257. The Bmwe Act.• Open Meeirngr for Loca!I e*& ve Bodies,2003.Available on the California attorney General's website at www.caag.state.ca us(click on"Publications,"then click on"General Publications and Forms' For specific questions,contact your public agency's attorney. Good-Ethics-Is-Good-Politics Note The media is highly vigilant in monitoring compliance with open government requirements— and quick to report on perceived violations. The Public's Right To Participate in Meetings Basic Rules Another element of the Brown Act is that the public has a right to address the governing body at any open meeting on any subject before it. An elected official's role is to both hear and evaluate these concerns. There are a number of basic rules that govern this right. • Posting and Following the Agenda. The Brown Act requires that the public be informed of the time of and the issues to be addressed at each meeting.239 The agenda must be posted at least 72 hours in advance of a meeting and written in a way that informs people of what business will be discussed.240 Any person may request that a copy of the agenda packet be mailed to them.241 Many local agencies also post these materials on their websites. There are a few exceptions to the 72-hour requirement that relate to unexpected circumstances.242 • Taping or Recording of Meetings Is Allowed Anyone attending a meeting may record it with an audio or video recorder unless the governing body makes a finding that the noise, illumination, or obstruction of view will disrupt the meeting.243 Any tape or film made by the local agency becomes a public record that must be made available to the public for at least 30 days.2 44 23'Cal.Gov't Code§54954.2(a). ""Cal.Gov't Code§54954.2(a). 241 Cal.Gov't Code§54954.1. 2Q Cal.Gov't Code§54954.2(b). 2"Cal.Gov't Code§54953.5(a). 1 / 211 Cal.Gov't Code§54953.5(b). `ara' • Sign In Must Be Voluntary. Members of the public cannot be required to register their name �...' or fulfill any other condition for attendance at a meeting. If an attendance list is used, it must clearly state that signing the list is voluntary.245 • The Public's Right to be Heard. Generally, every agenda must provide an opportunity for the public to address the governing body on any item of interest to the public within the body's jurisdiction.246 If the issue of concern is one pending before the legislative body,the opportunity must be provided before or during the body's consideration of that issue.2a • Reasonable Time Limits May Be Imposed Local agencies may adopt reasonable regulations to ensure that everyone has an opportunity to be heard in an orderly manner.2� Typical restrictions include time limits,prohibitions of repetitious or irrelevant comments, zas and ruling as out of order personal attacks on the character or motives of any person. The chair may also suggest that a spokesperson be chosen for a group. If a group willfully interrupts a meeting and order cannot be restored, the room may be cleared.2 °Members of the press must be allowed to remain and only matters on the agenda can be discussed.251 However, the chair cannot stop speakers from expressing their opinions or their criticism of the governing body.252 Finally,note that other state laws may provide additional, subject specific notice requirements. Consequences of Violation Nullification of Decision. As a general matter, decisions that are not made according to the Brown Act are void.253 After asking the agency to cure the violation, either the district attorney or any interested person may sue to have the action declared invalid.254 Costs and attorneys fees may be awarded to those who successfully challenge Brown Act violations.255 245 Cal.Gov't Code§54953.3. 2's Cal.Gov't Code§54954.3(a). 2"Cal.Gov't Code§54954.3(a). 21,Cal.Gov't Code§54954.3(b). 241 Cal.Gov't Code§54954.3(b);White v.City of Norwalk,900 F.2d 1421,1425(9th Cir. 1990). 290 Cal.Gov't Code§54957.9. 25'Cal.Gov't Code§54957.9. 252 Cal.Gov't Code§§54954.3(c),54957.9;Perry Educational Association v.Perry Local Educators'Association,460 U.S.37,46(1983). 253 Cal.Gov't Code§54960.1. 251 Cal.Gov't Code§54960.I. ��� 255 Cal.Gov't Code§54960.5. Criminal Sanctions. Additionally, governing body members who intentionally violate the Brown Act may be guilty of a misdemeanor.256 The penalty for a misdemeanor conviction is imprisonment in county jail for up to six months or a fine of up to $1,000 or both.257 Preventative Measures. Either the district attorney or any interested person may sue to prevent violations of the Brown Act.258 Another remedy, under certain circumstances, is for a court to order that all closed sessions be tape-recorded.2 s Costs and attorneys fees may be awarded.260 Potential Civil Rights Violations. Regulations of public participation beyond those allowed by applicable statutory and constitutional law can give rise to liability under the civil rights laws,261 including liability for attorneys fees.262 Good-Ethics-is-Good-Politics Note Community relations—and the public's views of an official's responsiveness—are seriously undermined when it appears that an official is not listening to the input being provided by the public. Even if you disagree with the views being offered, treat the speaker with the same respect you would like to be treated with if the roles were reversed. 256 Cal.Gov't Code§54959. 217 See Cal.Penal Code§ 19. 2sx Cal.Gov't Code§54960. 239 Cal.Gov't Code§54960. 2"'Cal.Gov't Code§54960.5. lei See 42 U.S.C.§ 1983. 2Fz See 42 U.S.C.§1988. `ai' The Public's Right To Access Records Basic Rules Copies of the agenda materials and other documents distributed to the governing body must also be available to the public.263 Any materials distributed by the local agency, its consultants, or commissioners must be available for public inspection at the meeting. Materials prepared and distributed by some other person must be made available after the meeting. The public has the right to see any materials that are created as part of the conduct of the people's business.264 These materials include any writing that was prepared, owned,used,or retained by a public agency.265 They include documents, computer data, e-mails, facsimiles, and photographs.266 A document is presumed to be a public record unless a specific exception applies.267 Two minor exceptions worth noting are: • The"pending litigation" exception, which exempts documents that are prepared in support of ongoing litigation (otherwise opposing counsel could obtain all documents containing the agency's legal strategy just by asking for them).zse • The"deliberative process" exception, which exempts preliminary drafts, notes, or other information relating to deliberative processes not ordinarily retained in the agency's course of business. The public agency also must be able to demonstrate that the public's interest in nondisclosure outweighs the public's interest in disclosure.269 Despite these exceptions, the safe assumption is that virtually all materials involved in one's service on the governing body are public records subject to disclosure. Consequences of Violation Anyone can sue the agency to enforce his or her right to access public records subject to disclosure.270 If the person wins, they are also entitled to costs and attorneys fees.271 263 Cal.Gov't Code§54957.5. 2"See generally Cal.Gov't Code§§6250 and following. 265 Cal.Gov't Code§6252(d). 266 Cal.Gov't Code§6252(e). 267 State ex rel.Division oflndustrial Safety v.Superior Court,43 Cal.App.3d 778(1974);Cook v.Craig,55 Cal.App.3d 773(1976). 2"Cal.Gov't Code§6254(b). '69 See Cal.Gov't Code§6254(a). See also California First Amendment Coalition v.Superior Court,67 Cal.App.4th 159(1998). 2"Cal.Gov't Code§6258. \..W/ 271 Cal.Gov't Code§6259(d). [Pull quote: A safe assumption is that virtually all materials involved in one's service on the governing body are public records subject to public disclosure.] The Right to Fair and Unbiased Decision-makers Basic Rules Although California statutes largely determine when public officials must disqualify themselves from participating in decisions, common law (judge-made) and some constitutional principles still require a public official to exercise his or her powers free from personal bias—including biases that have nothing to do with financial gain or losses. Under the common law doctrine, an elected official has a fiduciary duty to exercise the powers of office for the benefit of the public and is not permitted to use those powers for the benefit of private interest.272 In addition, constitutional due process principles require a decision-maker to be fair and impartial when the decision-making body is sitting in what is known as a"quasi-judicial" capacity. Quasi-judicial matters include variances, use permits, annexation protests, personnel disciplinary actions, and licenses. Quasi-judicial proceedings tend to involve the application of generally adopted standards to specific situations,much as a judge applies the law to a particul set of facts. The kinds of impermissible bias include:273 • Personal Interest in the Decision's Outcome. For example, one court found a council member was biased and should not participate in a decision on a proposed addition to a home in his neighborhood when the addition would block the council member's view of the ocean from the council member's apartment.274 • Party Bias. An example is a strong animosity about a permit applicant based on the conduct that occurred outside the hearing. Conversely, a strong personal loyalty toward a party could bias an official as well. 2'See Nussbaum v. Weeks,214 Cal.App.3d 1598,1597-98,263 Cal.Rptr.360,365-66(1989). 27'See Breakzone Billiards v. City of Torrance,81 Cal.App.4th 1205,1234 n.23,97 Cal.Rpir.2d 467(2d Dist.2000)(finding no common lay� bias). 274 See Clark v.City of Hermosa Beach,48 Cal.App.4th 1152,56 Cal.Rpir.2d 223(2d Dist. 1996)(finding common law bias). • Factual Bias. An example is information an official might receive outside the public hearing that causes the official to have a closed mind to any factual information that may be presented in a hearing. This is a variation of the"ex parse communications"doctrine, which suggests that, in quasi-judicial matters, all communications to decision-makers about the merits (or demerits) of a proposal should occur in the context of the noticed hearing on the proposal. When an official sits in a quasi-judicial capacity, that official's personal interest or involvement, either in a decision's outcome or with any participants, can create a problem. Typically, having the official disqualify himself or herself solves the problem.275 This rule does not preclude holding opinions, philosophies or strong feelings about issues or specific projects; it also does not proscribe expression of views about matters of importance in the community,particularly during an election campaign.276 It would, however, preclude participation by a decision-maker who has pre judged a matter and has a completely closed mind,with a preconceived and unalterable view of the outcome of a quasi-judicial proceeding without regard to the evidence.2n Consequences of Violation Effect on Decision. An administrative decision tainted by bias will be set aside.278 The aency will have to conduct new proceedings free of the influence of the biased decision-maker.279 1 Effect on Decision-Maker. Violation of the common law duty to avoid conflicts of interest can constitute official misconduct and result in a loss of office.280 Due Process Violations. If the violation rises to the level of a denial of due process under constitutional law, the affected individual(s) may seek damages, costs and attorneys fees.281 [Pull Quote: This rule does not preclude holding opinions, philosophies or strong feelings about issues or specific projects . . . it does,however,preclude participation by a decision-maker who has pre judged a matter and has a completely closed mind . . . ] 275 See Fairfield v.Superior Court,14 Cal.3d 768,122 Cal,Rptr.543(1975);Mennig v. City Council,86 Cal.App.3d 341,150 Cal.Rpm 207 (1978). 276 Fairfield v.Superior Court,14 Cal.3d 768,122 Cal.Rpir.543(1975). 27 See Cohan v.City of Thousand Oaks,30 Cal.App.4th 547,35 Cal.Rptr.2d 782(1994)(where local ordinance called for"person"appealing planning commission decision to city council to show cause why the commission's action should be overturned,city council's decision to appeal the action to itself was an appearance of conflict of interest and was part of overall violation of developer's substantive and procedural due process rights). 21,See generally Cal.Civ.Proc.Code§ 1094.5. 279 See Clark v.City of Hermosa Beach,48 Cal.App.4th 1152,56 Cal.Rptr.2d 223(2d Dist.1996)(requiring the council to rehear an appeal from the planning commission's decision and provide a fair hearing). 21"See Nussbaum,214 Cal.App.3d at 1597-98,263 Cal.Rptr.at 365-66. 2111 See 42 U.S.C.§§ 1983,1988. Decisions May Not Benefit Family Basic Rules An important part of a fair process is that everyone, irrespective of their personal relationship to decision-makers, will have the same access to government benefits and approvals. An outgrowth of this principle is the rule that public officials must disqualify themselves from participating in decisions that will have the result of their immediate family's expenses,income, assets or liabilities increasing or decreasing.282 "Immediate family"includes one's spouse and dependent children.283 Consequences of Violation These requirements are part of the Political Reform Act. A refusal to disqualify oneself is punishable by both criminal and civil sanctions, depending on the severity of the violation and the degree of intent to violate the law that enforcement entities are able to demonstrate.284 Criminal Sanctions. A knowing or willful violation of these requirements is a misdemeanor.285 A person convicted of a misdemeanor under the Political Reform Act may not be a candidate for elective office for four years following the conviction.286 Such a conviction may also create an immediate loss of office under the theory that the official violated his official duties287 or create a basis for the grand jury to initiate proceedings for removal on a theory that failure to disclose �,W/ constitutes willful or corrupt misconduct in office.288 Civil Sanctions. District attorneys, some city attorneys, the Fair Political Practices Commission or a member of the public can bring an action to prevent the official from violating the law.289 Actions brought by the Fair Political Practices Commission can result not only in an order preventing the violation,but a monetary penalty of up to $5,000 per violation.290 If the action is brought by a member of the public, the violator may have to reimburse the costs of the litigation, including reasonable attorneys fees.291 z"'2 Cal.Code of Regs.§§18703.5. 2"See Cal.Gov't Code§82029. 21"See generally Cal.Gov't Code§§91000 and following. 2111 See Cal.Gov't Code§91000(a). 2x'See Cal.Gov't Code§91002. 2%7 See Cal.Gov't Code§ 1770(h)(providing that a vacancy occurs upon conviction of a felony or of any offense involving a violation of official duties). 211 Cal.Gov't Code§§3060-3074(providing for proceedings to be brought by the grand jury for removal from office). 2"9 Cal.Gov't Code§§83116,91001(b),91001.5,91004,91005,91007. 291'Cal.Gov't Code§83116. 291 Cal.Gov't Code§91012. `�'' i Effect on Agency and Those Affected by Agency's Decision. When a disqualified official participates in a decision, it can also void the decision.292 This can have serious consequences for those affected by the decision as well as the public agency. [PuU quote: An important part of a fair process is that everyone, irrespective of their personal relationship to decision-makers, will have the same access to government benefits and approvals.] Holding Multiple Public Offices When one assumes a public office, one takes on responsibility to the constituents of that agency to put their interests first. When one occupies multiple offices in multiple agencies, that job becomes more complicated,both legally and ethically. Potential legal issues include: • Political Reform Act issues when the official is in the position of making decisions that affect the official's economic interests. This issue is covered in the second section of this guide; • Section 1090 issues when the official's position is such that the official has an interest in a contract in which the agency is involved. This issue is also covered `...✓ in the second section of this guide; and • Incompatibility of office issues (for example,membership on the city council and serving on the board of another local agency) when the official's offices are such that the official may be subjected to conflicting loyalties.293 The dual-office holding problem differs from a conflict of interest that involves a potential clash between one's private interest and one's public duties. Incompatibility of offices normally refers to the"public-public"situation where no personal conflict of interest is involved. 292 See Cal,Gov't Code§91003(b). \~� 2"'See Cal.Gov't Code§1126. Basic Rules Offices are incompatible if there is"any significant clash of duties or loyalties between the offices, if the dual office holding would be improper for reasons of public policy, or if either officer exercises a supervisory, auditory, or removal power over the other. ,294 The common law doctrine of incompatibility applies if 1. Both positions are public"offices" (as opposed to merely"public employment"); and 2. There is a potential for overlap or conflict in duties. The Attorney General has articulated the test with the following two questions: 1. Do the duties and responsibilities of the offices so conflict that the public interest will be harmed when both offices are held by the same person? 2. Is it against public policy for the same individual to hold both offices?295 The holding of one office does not necessarily disqualify the incumbent from holding another office at the same time if there is no overlap or conflict in the functions of the two offices in question. Some examples of offices found incompatible are: • One office is subordinate to the other and subject in some degree to the supervisory power of the other;296 • Both offices oversee overlapping territory;297 • The incumbent of one office has the power to remove the incumbent of the other;298 and • One has the power to audit the accounts of another.299 Note that there can be specific legislative exceptions to this rule.300 Under some circumstances, local agencies may allow simultaneous occupancy of what would otherwise be incompatible offifces.301 '71 Cal.Op.Att'y Gen.39(1988). 215 See generally73 Cal.Op.Att'y Gen.357(1990). 29'People ex rel.Chapman v.Rapsey,16 Cal.2d 636,107 P.2d 388(1940). 29'68 Cal.Op.Att'y Gen 337(1985). 'y"People ex rel.Chapman v.Rapsey,16 Cal.2d 636,107 P.2d 388(1940). 21 People ex rel.Chapman v.Rapsey,16 Cal.2d 636,107 P.2d 388(1940). 3m See,for example,Cal.Health&Safety Code 4 6480(b)(relating to city officials serving on sanitary districts). Consequences of Violation The consequences are severe. Acceptance of a second office, which is incompatible with an office previously entered into, automatically vacates the prior office.302 [Pull Quote: When one assumes a public office, one takes on responsibility to the constituents of that agency to put their interests first. When one occupies multiple offices in multiple agencies, that job becomes more complicated . . .I Special Issues Employees Who Run for the Governing Board of Their Public Agency Employers Employees Generally, an individual may not serve as an elected or appointed member of a local agency's governing board if he or she is an employee of the local agency.303 If the employee does not resign,the individual's employment automatically terminates upon being sworn into office. Volunteer firefighters are exempt from these provisions, if the firefighter receives no salary.304 Individual Agency Guidelines State and local agencies may adopt their own statements of incompatible activities to govern employee conduct. These statements may prohibit employees from participating in outside employment or other activities that would be inconsistent or in conflict with their duties as employees of the agency. These guidelines should also be consulted before participating in an activity that may result in an incompatibility of office situation. O . FuRTIJER INFORMATION For more information,the Fair Political Practices Commission has produced"Holding Two Positions," which is available online at www;fppc.ca.gov. For specific questions, please contact either the Fair Political Practices Commission or your public agency's attorney. 301 See 66 Cal.Op.Att'y Gen.293(1983)(offices of city and county planning commission are incompatible but county and charter city may adopt legislation specifying otherwise). People ex rel. Chapman v.Rapsey, 16 Cal.2d 636,107 P.2d 388(1940). See also Cal.Gov't Code§ 1126. See Cal.Gov't.Code§53227(for cities,counties and special districts);Cal.Educ.Code§§35107(b)(1)(school districts),72103(b)(1) (community college districts). 3N See 85 Cal.Op.Att'y Gen 230(2002)("salary"does not include per-call and equipment stipends). Disqualification Based on Receipt of Campaign Contributions Basic Rules Generally, the ethics laws with respect to campaign contributions emphasize disclosure rather than disqualification.305 The emphasis on disclosure enables the public to assess for itself the degree to which an official's ability to fairly and impartially weigh the merits of an issue could be influenced by campaign contributors who appear before the agency. Both financial and in- kind support must be disclosed. Moreover, the courts have held that the receipt of campaign contributions does not generally give rise to a duty to disqualify oneself based on bias issues. The court determined that a city councilmember who receives a campaign contribution from a developer is not automatically barred from acting on the developer's land use permit application.306 The court did leave open the possibility that this scenario could, under certain circumstances, create a problem. However, state law does require certain local agency officials to disqualify themselves from participating in proceedings regarding licenses, permits and other entitlements for use if the official has received campaign contributions of more than $250 during the previous twelve months from any party or participant.307 Note that campaign contributions may be both monetar i (dollars) and "in-kind" contributions.308 `a.� In addition, these officials are prohibited from receiving, soliciting or directing a contribution of more than $250 from any party or participant in a license, permit or entitlement proceeding while the proceeding is pending and for three months after the contribution. Affected Officials Covered officials include local agency heads (such as a district manager)but do not include officials directly elected to the board of local agencies while acting in the scope of the office for which they were elected. However, elected officials are covered by this prohibition when they sit as members of other boards to which they were not elected (such as joint power agencies, regional government entities or Local Agency Formation Commissions). These prohibitions apply only with respect to campaign contributions from persons who are financially interested in the outcome of the specified proceedings. Those interested persons include: ""See generally Cal.Gov't Code§84100 and following;2 Cal.Code of Regs.§ 18401 and following. "fi Woodland Hills Residents Association v.City Council,26 Cal.3d 938,164 Cal.Rptr.255(1980). But see Cal.Gov't Code§84308 and 2 Cal. Code of Regs.§§ 18438-18438.8(defining who is disqualified from acting on a land use entitlement application after receipt of a campaign contribution). 117 Cal.Gov't Code§84308. 3'See Cal.Gov't Code§82015;2 Cal.Code of Regs.§ 18215. • Parties to the proceeding (such as applicants for the permit, license or entitlement); and • Participants. A participant is a person who is not a party but who actively supports or opposes a particular decision in a proceeding involving a license, permit or other entitlement for use and who has a financial interest in the outcome of the decision. A person qualifies as a"participant"if he or she attempts to influence the officers or employees of the agency with respect to the decision,or testifies in person before the agency with respect to the decision. Kinds Of Proceedings Affected The general rule applies to all proceedings involving licenses and permits, including use permits. This includes: • Business, professional, trade and land use licenses and permits; • Land use permits; • Franchises; and • Contracts, other than competitively bid, labor or personal employment contracts. Examples of land use permits include conditional use permits, zoning variances, and tentative subdivision and parcel maps. Examples of covered contracts include consulting contracts, whether engineering, architectural or legal. Actions That Must Be Taken Disclosure. When someone files a permit or license application, that individual must publicly report all covered officials to whom the individual made contributions of more than $250 during the previous twelve months. Likewise, a covered official must publicly disclose on the record of the proceeding any party or participant who has contributed more than $250 during the previous twelve months to that official. The disclosure must be made prior to the agency making any decision in the proceeding(without the member's participation). Disqualification. If, prior to making a decision in the proceeding,a covered official knowingly receives more than $250 in campaign contributions from a party during the previous twelve months, that official must disqualify himself or herself from participating in the proceeding. Likewise,with respect to contributions received from a participant, the covered official must disqualify himself or herself if he or she has reason to know, prior to making a decision in the proceeding,that the participant is financially interested in the outcome of the proceeding. Disqualification means that the official may not participate in making any decision in the proceeding, and may not in any way attempt to use his or her official position to influence the decision. Note that disqualification is required due to actual receipt of campaign contributions, not simply solicitation of campaign contributions if none are received. Avoiding Disqualification. A covered official may avoid disqualification if he or she returns the contribution, or that portion which is over$250, within 30 days from the time the official knows or has reason to know of the contribution and the proceeding. No Contributions During the Proceeding. While the permit or license proceeding is pending and for three months after the decision, covered officials are prohibited from soliciting or receiving campaign contributions from either parties or participants whom they know or have reason to know are financially interested in the outcome. This prohibition includes a prohibition against soliciting, receiving or directing contributions on behalf of another person or on behalf of a campaign committee. Likewise, all parties and participants are prohibited during this period of time from making contributions of more than $250 to any officials involved in the proceedings. Good-Ethics-Is-Good Politics Note Even if the law does not constrain your political fundraising activities (other than requiring you to disclose your donors), it is important to be extraordinarily judicious in choosing those you will ask for campaign contributions. If an individual or company has matters pending with your agency, they (and others, including the media and your fellow candidates) are going to perceive a relationship between your decision and whether they contribute to your campaign. The unkind characterization for this dynamic is "shake-down." Two important points to remember: • The restrictions on campaign fundraising are a floor and not a ceiling for ethical behavior. • Public officials who indicate that their actions on a matter will be influenced by whether they receive a campaign contribution put themselves at risk of being accused of soliciting a bribe or extortion. See discussion at Consequences of Violation These restrictions are part of the Political Reform Act. Violations of the Act are punishable by both criminal and civil sanctions, depending on the severity of the violation and the degree of intent to violate the law that enforcement entities are able to demonstrate.309 Criminal Sanctions. A knowing or willful violation of the Political Reform Act is a misdemeanor.310 A person convicted of a misdemeanor under these laws may not be a candidate "'See generally Cal.Gov't Code pp 91000 and following. Nkupe for elective office for four years following the conviction.311 Such a conviction may also create an immediate loss of office under the theory that the official violated his official duties312 or create a basis for the grand jury to initiate proceedings for removal on a theory that failure to disclose constitutes willful or corrupt misconduct in office.313 Civil Sanctions. District attorneys, some city attorneys,the Fair Political Practices Commission or a member of the public can bring an action to prevent the official from violating the law.314 Actions brought by the Fair Political Practices Commission can result not only in an order preventing the violation, but a monetary penalty of up to $5,000 per violation.315 If the action is brought by a member of the public,the violator may have to reimburse the costs of the litigation, including reasonable attorneys fees.316 Effect on Agency and Those Affected by Agency's Decision. When a disqualified official participates in a decision, it can also void the decision.317 This can have serious consequences for those affected by the decision as well as the public agency. For more information, the Fair Political Practices Commission has produced "Campaign Contributions May Cause Conflicts for Appointees and Commissioners,"which is available online at www.fppc.ca.gov. For specific questions,please contact the Fair Political Practices Commission or your public agency's attorney. �•..� Charitable Fundraising Basic Rules Just as the public wants to know who contributed to campaigns,it also wants to know who is contributing to elected official's favorite charitable and other causes. Elected officials who are successful in getting someone to contribute$5,000 or more to a legislative, governmental or charitable cause during a calendar year are subject to special disclosure requirements under the Political Reform Act. Within 30 days of reaching the$5,000 ""See Cal.Gov't Code§91000(a). 111 See Cal.Gov't Code§91002. 312 See Cal.Gov't Code§1770(h)(providing that a vacancy occurs upon conviction of a felony or of any offense involving a violation of official duties). Cal.Gov't Code§§3060-3074(providing for proceedings to be brought by the grand jury for removal from office). Cal.Gov't Code§§83116, 91001(b),91001.5,91004,91005,91007. 'IS Cal.Gov't Code§83116. 116 Cal.Gov't Code§91012. �� 317 See Cal.Gov't Code§91003(b). threshold, the elected official must file a report with the official's agency(typically the city clerk). The report contains the following information: • The contributor's name and address; • The amount of the contribution; • The date or dates on which the payments were made; • The name and address of the contribution recipient; • If goods or services were contributed, a description of those goods and services; and • A description of the purpose or event for which the contribution was used.318 The official must make this report once a single donor(whether they are individual or an organization)has given more than the $5,000 aggregate threshold for a calendar year, all payments the donor has made for the calendar year made must be disclosed within 30 days after: 1)the date the $5,000 threshold was reached or 2) the date the payment was made, whichever occurs later.319 What is a"legislative, governmental or charitable" cause? The law does not say, but charitable causes typically involve 501(c)(3)organizations. A"governmental"cause might include such things as fundraising for a new city hall roof. The reference to a "legislative" cause apparently has its roots in a 1996 Fair Political Practices Commission opinion addressing a situation--in which a state senator asked a private Zparty to pay for the airfare and expenses for a witness to come testify at a legislative hearings 0 Of course, conditioning one's support for a matter on the payment of something of value is criminal extortion under state and federal law.321 Consequences of Violation The reporting requirement is part of the Political Reform Act. Violations of the Act are punishable by both criminal and civil sanctions, depending on the severity of the violation and the degree of intent to violate the law that enforcement entities are able to demonstrate.322 11"See Cal.Gov't Code§82015(bxB)(iii). 'r'Id. See Fair Political Practices Commission webpage:"Where to File Campaign Reports"at http://www.fppc.ca.govrndex.html?id=19 i21 See Fair Political Practices Commission Advice Letter A-96-098(March 26,1996). 32'Cal.Penal Code§518;In re Shepard,161 Cal. 171 (1911). See alsb 18 U.S.C.§666(ax 1)(B)(referring to"corruptly solicits or demands for the benefit of any person,intending to be influenced..."). '22 See generally Cal.Gov't Code§§91000 and following. Criminal Sanctions. A knowing or willful violation of these requirements is a misdemeanor.323 A person convicted of a misdemeanor under these laws may not be a candidate for elective office for four years following the conviction.324 Such a conviction may also create an immediate loss of office under the theory that the official violated his official duties325 or create a basis for the grand jury to initiate proceedings for removal on a theory that failure to disclose constitutes willful or corrupt misconduct in office.326 Civil Sanctions. District attorneys, some city attorneys,the Fair Political Practices Commission or a member of the public can bring an action to enforce compliance with the law.327 Actions brought by the Fair Political Practices Commission can result not only in an order preventing the violation,but a monetary penalty of up to $5,000 per violation.328 If the action is brought by a member of the public, the violator may have to reimburse the costs of the litigation, including reasonable attorneys fees.329 State Penalties for Extortion. Of course, if the issue is extortion, extortion is a misdemeanor under state law.330 Misdemeanors are punishable by up to six months in county jail, a fine of up to $1,000 or both.331 Extortion can also be the basis for a grand jury to initiate removal-from- office proceedings for official misconduct.332 Federal Penalties for Extortion. If an agency receives more than $10,000 in federal monies, an official could find him or herself subject to federal prosecution if the amount at stake(for example, a solicited contribution) exceeds $5,000.3 3 The penalty is a fine of up to three times the amount of the in question or$250,000 (whichever is more), up to 10 years imprisonment or both.334 121 See Cal.Gov't Code§91000(a). 12'See Cal.Gov't Code§91002. 12.5 See Cal.Gov't Code§ 1770(h)(providing that a vacancy occurs upon conviction of a felony or of any offense involving a violation of official duties). 126 Cal.Gov't Code§§3060-3074(providing for proceedings to be brought by the grand jury for removal from office). '"Cal.Gov't Code§§83116, 91001(b),91001.5,91004,91005,91007. 12x Cal.Gov't Code§83116. 12'Cal.Gov't Code§91012. 30 Cal.Penal.Code§521. 331 Cal.Penal Code§ 19. 32 Cal.Gov't Code§§3060-3074. 33 18 U.S.C.§666. 334 See 18 U.S.C.§§666(specifying maximum 10 year prison term and fine`under this title"),3571(general fine for violating federal criminal laws). Restitution. The official may be ordered to pay restitution to the agency of the amount of the profit or advantage received (or loss to the agency) as the result of the misuse of the official's position.335 Charitable Fundraising Practices Criticized Think no one will criticize charitable fundraising by elected officials? Think again. The San Jose Mercury News has editorialized against the practice. The charge was that public officials' charitable fundraising efforts targeted those with business before the agency. The editorial asserted that such practices were part of a"pay to play" atmosphere at the agency.336 For more thoughts on the charitable fundraising issue, see the February 2004 Western City Everyday Ethics article on this topic,available at www.�-,g.org/tm.-, 33'U.S. v.Gayian,342 F.3d 1010(9i°Cir.2003). 3m"The City Hall Tango..."San Jose Mercury News,April 18,2004. About This Guide California has a complex set of ethics laws to guide local officials in their service to their communities. How does the well-intentioned local official keep track of them all? Keeping three core principles in mind helps. These are: 1. Public officials may not use their offices for personal financial gain 2. Holding public office does not entitle one to personal advantages and perks relating office. 3. The public's business must be conducted openly and fairly. This guide links California's ethics laws to these principles,explaining: • What the law requires; • What the consequences of violations of the law are; • Special issues of interest under the law. The guide's goal is to acquaint local officials with the basic requirements of these ethics laws,so they know when to consult their agency attorneys for more specific guidance. The guide also notes that these laws also constitute minimum standards for officials' conduct. They are aJloor for conduct,not a ceiling. Just because a particular course of action is legal,does not mean it is ethical. The guide covers such issues as: • Officials' duty to disclose their economic interests; • When officials must disqualify themselves from participating in decisions that may affect their financial interests; • Why an agency cannot even enter into a contract in which one of its officials would have a personal interest; • Prohibitions against personal and political use of public resources; • Expense and expense reimbursement issues; • Open meeting law requirements; • Public records disclosure requirements; • Bias and fair process issues; • Prohibitions against holding multiple offices;and • When campaign contributions become a disqualification issue. In short, this guide helps local officials stay on the right side of these laws and avoid inadvertent missteps that would undermine thepublic's trust in their leadership and their agency. THE LOCAL OFFICIAL'S REFERENCE TO ETHICS LAWS 1 SKU: 1181 Price: $20.00