HomeMy WebLinkAbout12-12-2018 Administration Committee Agenda12/12/2018 Administration Committee Agenda Page 1 of 3
Orange County Sanitation District
Regular Meeting of the ADMINISTRATION COMMITTEE
Wednesday, December 12, 2018 5:00 P.M. Administration Building Board Room
10844 Ellis Avenue Fountain Valley, CA (714) 593-7433
AGENDA CALL TO ORDER:
PLEDGE OF ALLEGIANCE: DECLARATION OF QUORUM: (Clerk of the Board)
PUBLIC COMMENTS: If you wish to address the Committee on any item, please complete a
Speaker’s Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you want to speak. Speakers will be recognized by
the Chairman and are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on
miscellaneous matters of general interest to the Committee Members. These reports are for information
only and require no action by the Committee.
CONSENT CALENDAR: The Consent Calendar Items are considered to be routine and will be
enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent
Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board)
RECOMMENDATION: Approve Minutes of the November 14, 2018 Administration
Committee Meeting. 2. RECORDS RETENTION SCHEDULE (Lorenzo Tyner)
RECOMMENDATION: Recommend to the Board of Directors to: Adopt
Resolution No. OCSD 18-XX entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District Adopting the Records Management Program Policy and Procedures & Updated Records Retention Schedule, Authorizing Destruction of Obsolete Records, and Repealing Resolution No. OCSD 15-16”.
12/12/2018 Administration Committee Agenda Page 2 of 3
NON-CONSENT: 3. INVEST AND/OR REINVEST DISTRICT’S FUNDS (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: Adopt
Resolution No. OCSD 18-XX, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District, Authorizing the District’s Treasurer to Invest and/or Reinvest District’s Funds, Adopting District’s Investment Policy Statement and Performance Benchmarks, and Repealing Resolution No. OCSD 17-17”.
4. POLICY EXCEPTION REGARDING EMPLOYMENT OF AN EMPLOYEE FOLLOWING RETIREMENT (Celia Chandler) RECOMMENDATION: Approve an exception to the Orange County Sanitation District (Sanitation District) Board of Directors Personnel Policy 1.4 on Recruitment
and Selection (Policy). Specifically, staff requests a one-time exception to the
Policy provision that would prohibit a former employee from doing business or providing services to the Sanitation District directly, through his/her own business, or indirectly through a contractor, for a period of one (1) year post-employment.
INFORMATION ITEMS:
5. ODOR AND CORROSION CONTROL PRESENTATION (Ed Torres)
DEPARTMENT HEAD REPORTS: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IF ANY: ADJOURNMENT:
The next Administration Committee meeting is scheduled for Wednesday, February 13, 2019 at 5:00 p.m.
12/12/2018 Administration Committee Agenda Page 3 of 3
Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board’s office at (714) 593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Sanitation District’s Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A. Lore, MMC Clerk of the Board (714) 593-7433 klore@ocsd.com For any questions on the agenda, Committee members may contact staff at: General Manager James Herberg (714) 593-7300 jherberg@ocsd.com Assistant General Manager Lorenzo Tyner (714) 593-7550 ltyner@ocsd.com Assistant General Manager Rob Thompson (714) 593-7310 rthompson@ocsd.com Director of Environmental Services James Colston (714) 593-7450 jcolston@ocsd.com Director of Human Resources Celia Chandler (714) 593-7202 cchandler@ocsd.com
11/14/2018 Administration Committee Minutes Page 1 of 6
MINUTES OF THE ADMINISTRATION COMMITTEE
Orange County Sanitation District Wednesday, November 14, 2018 at 5:00 P.M.
A regular meeting of the Administration Committee of the Orange County Sanitation
District was called to order by Board Chairman Sebourn on November 14, 2018 at
5:01 p.m. in the Administration Building of the Orange County Sanitation District. Director Jim Ferryman led the Flag Salute.
A quorum was declared present as follows:
COMMITTEE MEMBERS PRESENT: Donald P. Wagner, Vice-Chairman James Ferryman Peter Kim
Richard Murphy
Steve Nagel Charlie Nguyen Glenn Parker Erik Peterson
Teresa Smith
Greg Sebourn, Board Chairman David Shawver, Board Vice-Chairman
COMMITTEE MEMBERS ABSENT:
Chad Wanke, Chairman
Sal Tinajero
STAFF PRESENT: Jim Herberg, General Manager Rob Thompson, Assistant General Manager Lorenzo Tyner, Assistant General Manager
Celia Chandler, Director of Human Resources
Ed Torres, Director of Operations & Maintenance Roya Sohanaki, Engineering Manager Tina Knapp, Deputy Clerk of the Board Gilbert Barela
Jeff Brown
Kim Cardenas Rhea De Guzman Damein Frabizio Al Garcia
Brad Hamilton
Lina Hsiao Rebecca Long Kathy Millea Adam Nazaroff
Warren Sternin
John Swindler Tyler Ramirez
OTHERS PRESENT:
Brad Hogin, General Counsel
Peter George, MGO Stefannie Kodrat, MGO
PUBLIC COMMENTS:
None.
ITEM NO. 1
11/14/2018 Administration Committee Minutes Page 2 of 6
REPORTS: General Manager Jim Herberg provided an update on The OC Plan for Integrated
Regional Water Management and stated that the Orange County Sanitation District, the
Orange County Water District, and the County of Orange are preparing to submit a grant application to the State Department of Water Resources to seek a fair share of State of California Proposition 1 grant funds. Mr. Herberg also provided a brief background of the establishment of this group.
Assistant General Manager Lorenzo Tyner did not provide a report. CONSENT CALENDAR:
1. APPROVAL OF MINUTES (Clerk of the Board)
MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the October 10, 2018 Administration Committee Meeting.
AYES: Ferryman, Kim, Murphy, Nagel, Nguyen, Parker, Peterson, Sebourn and Shawver NOES: None
ABSTENTIONS: None ABSENT: T. Smith, Tinajero, Wagner and Wanke 2. UPGRADE OF TIMECARD SOFTWARE (WORKFORCE) (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: A. Authorize a Purchase Order Contract to WorkForce Software for the upgrade of WorkForce, for a total amount not to exceed $119,475; and B. Approve a contingency of $23,895 (20%).
AYES: Ferryman, Kim, Murphy, Nagel, Nguyen, Parker, Peterson, Sebourn and Shawver NOES: None ABSTENTIONS: None ABSENT: T. Smith, Tinajero, Wagner and Wanke 3. MICROSOFT ENTERPRISE LICENSE AGREEMENT (ELA) FOR MICROSOFT
ENTERPRISE SOFTWARE LICENSES (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to:
A. Authorize a Purchase Order for a three-year contract to purchase Microsoft
Enterprise licenses under the Microsoft ELA in accordance with Microsoft Volume Enterprise Enrollment – for State and Local government, Riverside County Master Licensing Agreement 01E73970, payable annually and with
11/14/2018 Administration Committee Minutes Page 3 of 6
a contract expiration date of December 31, 2021, for a total amount not to exceed $1,335,952; and B. Approve a contingency of $200,393 (15%).
AYES: Ferryman, Kim, Murphy, Nagel, Nguyen, Parker, Peterson, Sebourn and Shawver NOES: None ABSTENTIONS: None ABSENT: T. Smith, Tinajero, Wagner and Wanke
4. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to:
A. Receive and file Orange County Sanitation District purchases made under the General Manager’s authority for the period of July 1, 2018 to September 30, 2018; and B. Approve the following additions to the pre-approved OEM Sole Source List
for the period of July 1, 2018 to September 30, 2018:
• EVOQUA WATER TECHNOLOGIES - Evoqua DI Water System Service
• INTERNATIONAL SOCIETY OF AUTOMATION (ISA) - On-site Instrumentation Technician Training
• POLYCHEM SYSTEMS – Gearboxes
AYES: Ferryman, Kim, Murphy, Nagel, Nguyen, Parker, Peterson, Sebourn and Shawver NOES: None ABSTENTIONS: None ABSENT: T. Smith, Tinajero, Wagner and Wanke
NON-CONSENT: 5. CONTRACTED INTERNAL AUDITS TO REVIEW ORANGE COUNTY SANITATION DISTRICT’S PROCUREMENT CARD PROGRAM (Lorenzo Tyner)
Mr. Tyner introduced this item and provided background information on the audit that was performed. Mr. Tyner also indicated that this item was reviewed by the Audit Ad Hoc Committee on October 10, 2018. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to: Receive and file the October 1, 2018 agreed-upon procedures review
of the Orange County Sanitation District’s Procard program for fiscal years 2015-
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2016 and 2016-2017 performed by the White Nelson Diehl Evans, Certified Public Accountants.
AYES: Ferryman, Kim, Murphy, Nagel, Nguyen, Parker, Peterson, Sebourn and Shawver NOES: None
ABSTENTIONS: None ABSENT: T. Smith, Tinajero, Wagner and Wanke 6. ORANGE COUNTY SANITATION DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR THE YEAR END JUNE 30, 2018
(Lorenzo Tyner)
Mr. Tyner introduced this item and provided brief background information on the item. Mr. Tyner introduced Lina Hsiao, Accounting Supervisor, who provided an informative PowerPoint presentation that included an overview of the CAFR;
financial measurements used; components of the net position increase; review of
the change in net position over the last five years; components of the cash and investments increase and decrease; a two-year comparison and comparison of budget to actual for the year ended June 30, 2018 for collection, treatment, and disposal costs; and a review of the auditor’s report.
Committee Vice-Chairman Wagner arrived at the meeting at 5:08 p.m.
Director Teresa Smith arrived at the meeting at 5:21 p.m.
Mr. Tyner commented on the two-year comparison for collection, treatment, and
disposal costs and introduced Peter George, auditor from MGO. Mr. George gave a PowerPoint presentation that included a review of the auditor’s responsibilities, deliverables, and a recap of the auditor’s communication with this Committee.
AYES: Ferryman, Kim, Murphy, Nagel, Nguyen, Parker, Peterson, Sebourn, Shawver, T. Smith and Wagner NOES: None
ABSTENTIONS: None ABSENT: Tinajero and Wanke MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to:
Receive and file the Orange County Sanitation District’s Comprehensive Annual Financial Report for the year ended June 30, 2018, prepared by staff and audited by Macias Gini & O’Connell LLP (MGO), Certified Public Accountants, along with the following reports prepared by MGO:
A. Report to the Board of Directors; and B. Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets.
11/14/2018 Administration Committee Minutes Page 5 of 6
Committee Vice-Chairman Wagner presided over the meeting beginning at 5:32 p.m.
7. CONSOLIDATED FINANCIAL REPORT FOR FIRST QUARTER ENDED SEPTEMBER 30, 2018 (Lorenzo Tyner) Mr. Tyner introduced this item and indicated staff was available to answer questions from the Committee.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District First Quarter Financial Report for the period ended September 30, 2018.
AYES: Ferryman, Kim, Murphy, Nagel, Nguyen, Parker, Peterson, Sebourn, Shawver, T. Smith and Wagner NOES: None
ABSTENTIONS: None ABSENT: Tinajero and Wanke INFORMATION ITEMS:
8. ORANGE COUNTY SANITATION DISTRICT RESEARCH PROGRAM (Rob Thompson) Assistant General Manager Rob Thompson introduced Senior Engineer Jeff
Brown who provided a PowerPoint presentation regarding the District’s Research program including: types of research, participation with other organizations, future needs, notable successes, current projects examples, an overview of the International Technology Approval Group (iTAG), and research budgeting.
CLOSED SESSION: None.
DEPARTMENT HEAD REPORTS: None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None.
11/14/2018 Administration Committee Minutes Page 6 of 6
ADJOURNMENT: Committee Vice-Chairman Wagner declared the meeting adjourned at 5:54 p.m. to the
next regularly scheduled meeting of Wednesday, December 12, 2018 at 5:00 p.m.
Submitted by:
_____________________ Tina Knapp, CMC Deputy Clerk of the Board
Page 1 of 2
ADMINISTRATION COMMITTEE Meeting Date 12/12/18 To Bd. of Dir. 12/19/18
AGENDA REPORT Item Number 2 Item Number
Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: RECORDS RETENTION SCHEDULE
GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 18-XX entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District Adopting the Records Management Program Policy
and Procedures & Updated Records Retention Schedule, Authorizing Destruction of Obsolete Records, and Repealing Resolution No. OCSD 15-16”. BACKGROUND
The Orange County Sanitation District’s (Sanitation District) Records Management Program is being updated to meet new statutory regulations and agency changes to better serve the operational needs of the Sanitation District. The Record Retention Review process, comprised of the Executive Management Team, General Counsel’s Office, departmental subject matter experts, and the Records Management Specialist,
has reviewed and recommends the proposed changes. The Sanitation District’s Records Management Program documents how long various types of information are to be kept, as dictated by the legal, fiscal, operational, and audit needs of the Sanitation District. As a public agency, there is an obligation to effectively
manage and maintain the Sanitation District’s information, most of which is classified as public information. RELEVANT STANDARDS
• Maintain and adhere to appropriate internal planning documents, Resolution No. OCSD 15-16 (Current Records Retention Schedule)
• Comply with Government Code Sections 60200 through 60204
PROBLEM There are current legal regulatory requirements that are not reflected in the Sanitation District’s existing Records Retention Schedule.
Page 2 of 2
PROPOSED SOLUTION Maintain the Sanitation District’s current Records Management Program Policy and
Procedures and adopt the updated Records Retention Schedule to reflect the current
legal regulatory requirements. TIMING CONCERNS
Destruction of some records may not be authorized until the updated Records Retention
Schedule is approved. RAMIFICATIONS OF NOT TAKING ACTION
Records will be kept longer than legally required which will impact compliance with the
current retention regulations as well as the need for storage space. PRIOR COMMITTEE/BOARD ACTIONS
July 2015 - Adoption of Resolution No. OCSD 15-16 Adopting the Records Management
Program Policy and Procedures, Updated Retention Schedule, Authorizing Destruction of Obsolete Records, and Repealing Resolution No. OCSD 10-12. July 2010 - Adoption of Resolution No. OCSD 10-12, Adopting the Records Management Program Policy and Procedures, Retention Schedule and Record Definitions, Authorizing Destruction of Obsolete Records, and Repealing Resolution No. OCSD 09-07. ADDITIONAL INFORMATION
As dictated by the current legal, audit, business, and operational needs of the Sanitation District, changes were made to existing record types, which include the retention length, record descriptions, and legal citations.
CEQA N/A FINANCIAL CONSIDERATIONS
N/A ATTACHMENT
The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.com) with the complete agenda package:
• Draft Resolution No. OCSD 18-XX
• Draft Records Retention Schedule 2018
OCSD 18-XX-1
RESOLUTION NO. OCSD 18-XX
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT
ADOPTING THE RECORDS MANAGEMENT PROGRAM
POLICY AND PROCEDURES & UPDATED RECORDS RETENTION SCHEDULE, AUTHORIZING DESTRUCTION OF OBSOLETE RECORDS, AND REPEALING RESOLUTION NO. OCSD 15-16
WHEREAS, it is necessary to establish a policy to maintain a Records Management Program (“Program”) that provides for the identification, access, and protection of all records generated or received by the District; and
WHEREAS, said Program ensures that all District records are created, received,
maintained, and destroyed in a legal and cost-effective manner, in accordance with operating requirements for District business and applicable statutes and regulations; and WHEREAS, the Board of Directors of the District are authorized, by the provisions
of California Government Code Sections 60200 through 60204, inclusive to destroy records under certain conditions, and WHEREAS, it is described and appropriate to authorize the destruction of the records on a routine basis; that have been retained for a defined period of time, that are
copies of originals on file with the District, or that have been preserved in conformance with all applicable statutes. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER:
Section 1: Adoption of the Current Records Management Policy and Procedures. The Board of Directors of the District hereby adopts the currently established Records Management Policy and Procedures.
Section 2: Adoption of Updated Records Retention Schedule. The Board of Directors of the District hereby adopts changes to the Records Retention Schedule, set forth in Appendix “A” incorporated herein by reference.
Section 3: Authorization for Destruction of Records. The destruction of records,
papers, and documents is hereby authorized, pursuant to California Government Code Sections 60200 et seq., after such records have been retained for the minimum time set forth in the Records Retention Schedule.
Section 4: Destruction of Records After Preservation. Any record not expressly
required by law to be filed and preserved may be destroyed at any time after it is preserved in conformance with the requirements of California Government Code Section 60203.
OCSD 18-XX-2
Section 5: Destruction of Duplicates. Pursuant to California Government Code Section 60200, any duplicate record, paper, or document (the original or a permanent copy of which is in the files of any office or Department of the District) may be destroyed
after confirmation with Records Management that such original or permanent copy
remains on file in the District. Section 6: Retention of Records Not Mentioned. All records, papers, and documents not mentioned in this Resolution shall be retained.
Section 7: Resolution No. OCSD 15-16 is hereby repealed. PASSED AND ADOPTED at a regular meeting of the Board of Directors held
December 19, 2018.
________________________________ David John Shawver Board Chairman ATTEST:
___________________________ Kelly A. Lore, MMC Clerk of the Board
OCSD 18-XX-3
STATE OF CALIFORNIA ) ) ss COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation
District, do hereby certify that the foregoing Resolution No. OCSD 18-XX was passed and adopted at a regular meeting of said Board on the 19th day of December 2018, by the following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal
of Orange County Sanitation District this 19th day of December 2018.
Kelly A. Lore, MMC Clerk of the Board of Directors
Orange County Sanitation District
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
BSD001 LO
BSD002 LO V H
BSD003 LO V
BSD004 LO V H
BSD005 LO
BSD006 2
BSD007 T+10 V
BSD008 T+7
BSD009 LO V
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length
(Years Unless
Specified)
Special Storage Consideration
Retention Citations / Comments
Affidavits of Publications Notices GC §60201, GC §54960.1(c)(1)
Secretary of State Vital Board ServicesUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
Bids - Awarded (Board Reviewed)GC §60201(d)(6); SOS c30; SoS c27
Bids - Unsuccessful (Board Reviewed)GC §34090; GC §60201(d)(11); SOS c30; GC
§602010(d)(6)
Board Administration Files:
Loyalty Oaths, Election Records, Directors Lists, Contact Information PC §801.5 22; 29 USC §1113; SOS c18; GC §34090(d)(1)
Agenda and Committee Reports GC §34090; SOS c22; SoS c42
Agreements & Contracts, Political & Outside Jurisdictions/Agencies:
Cooperative Agreements, JPAs (Joint Powers Authorities), JFAs (Joint Finance
Authorities), Interagency, etc.
GC §60201; GC §60201(d)(9); GC §60201(d)(1)
Annexation Files GC §34090; GC §60201(d)(1); SOS c28
Conflict of Interest (FPPC Filings)GC §81009(e); SOS c18
Contracts/Agreement - Board Review and Approval:
Includes Specifications
GC §60201(d)(1); CCP 337 et seq.; SOS c22; GC
§34090(e)
1 Board Services Adopted: TBD
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Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length
(Years Unless
Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital Board ServicesUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
BSD010 LO
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BSD013 LO V H
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BSD015 CL+6
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BSD017 LO V H
Ethics Training:
Sexual Harassment Board Only, Ethics Training Board & Employee GC §53235.2(b)
Formation Files GC §60201(d)(1)
Land Records:
Easements, Grant Deeds, Quit Claim Deeds, Abandonments, Condemnations, Real
Estate Purchase & Sale, Property Agreements, Encroachment Permits, Etc.
GC §60201(d)(8); GC §34090(a); Originals Managed by
Board Services
Director's Agency Correspondence:
Appointments and Reorganizations GC §60201
Ordinances GC §60201(d)(2)
Legal Opinions SOS c23
Litigation Files GC §60201(d)(4)
Meeting Minutes:
Board & Board Committees GC §60201(d)(3)
2 Board Services Adopted: TBD
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LC NN
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SOS V
USC
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Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length
(Years Unless
Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital Board ServicesUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
BSD018 LO V H
BSD019 LO V H
BSD020 LO
BSD021 3
BSD022 CL+6
BSD023 CL+2
Recorded Project Documents:
Board Approved Notice of Completion GC §60201(d)(8); SOS c26
Resolutions GC §60201(d)(2); GC §34090€
Public Record Act Requests GC §60201(d)(5); SoS c23
Tapes & Digital Recordings (Audio):
Board or Committee Meetings
GC §54953.5(b) Minimum retention 30 days or until
adoption of the minutes Per Brown Act
Director Communications:
General Board Correspondence
PC 801.5 22; 29 USC §1113; Director communications
subject to the Brown Act (e.g., prohibitions on serial
meetings, private deliberations)
Claims GC §60201
3 Board Services Adopted: TBD
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Vital Confidential Historical
CPM001 LO V
CPM002 CL+6 V
CPM003 LF V C
CPM004 CL+6
CPM005 CL+6
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Contract & Agreement File - Capital Improvement Projects (CIP):
(Includes Insurance certificates, authorization document, change orders,
amendments, notices, construction, etc.)
GC §60201; GC §60201(d)(6); GC §60201(d)(8) SoS c
22; Originals Kept in Board Services
Secretary of State Vital Contracts, Purch. & MaterialsUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
Purchase Order & Requisition Files (OA and OB):
Open Annual and Open Blanket GC §60201(d)(12); CCP §337; SOS c30
Contract & Agreement File - Non Capital Improvement Projects (Non CIP):
Professional Services, Equipment, Supplies, etc.GC §60201; GC §60201(d)(12)
Escrow Bid Documents
CCP §337.15 Unsuccessful Bid Documents returned to
Contractor after Contract is Awarded. The escrow bid
documents for the awarded contractor are returned once
the construction contract is complete.
OCSD acts as a temporary custodian of the documents,
which remain the property of the bidders. These
documents are held confidentailly.
Procurement File:
RFP, NIV, Addendum, Q&A Log, Evaluation Material, Correspondence etc.GC §60201; CCP 337; SoS c30
4 Contracts, Purch. & Materials Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Secretary of State Vital Contracts, Purch. & MaterialsUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
CPM006 CL+2
CPM007 4
CPM008 4
CPM009 T+1
CPM010 CL+10
CPM011 CL+10
CPM012 CL+10
CPM013 CL+10
Purchase Order & Requisition Files (OP and OS):
Open Purchase and Open Service CCP §337; SOS c30
Warehouse Materials Management Records:
Includes Disposal of Surplus Assets
GC §60201; GC §34090; CCP §337, SOS c29 Now Kept
in Database. Paper records 4 years; Database indefinite.
Bids:
Original Bids, Original bid bonds; OSHA logs SoS c30; CCP 337.15
Bid Evaluation Materials:
Evaluator certifications, Responsiveness & Responsibility review documents (safety,
finance, experience requirements), clarification requests and responses, Bid
Evaluation memorandum; notice of award recommendation
CCP 337.15; SoS c30; CCP 337; 343
Protest Documents - Bids and Proposals:
Protest and associated documents, determination on protest, appeal, determination
of appeal
CCP 337, 343
Warehouse Records:
Sales Orders, Discrepancies, Add To Stores, Receivers, Return To Vendors (RTV),
Shipping Records, Inventories
CCP §337; Now Kept in Database. Paper records 4 years;
Database indefinite.
Procurement Card Documentation Reconciliation, reports, agreement,
correspondence, etc. GC §60201
CIP Project Bid Package Pre-Award:
Published Invitation for Bid (IFB) Documents, including Specifications &
Drawings, Addenda and Bulletins issued, Bid Requirements Form, Question and
Answer Logs, Outreach Materials
CCP 337; CCP 337.15; GC §60201(d)(4); GC
§60201(d)(11); SoS c30 - bids = AU+4
5 Contracts, Purch. & Materials Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Secretary of State Vital Contracts, Purch. & MaterialsUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
CPM014 CL+10
CPM015 LF
CPM016 CL+10
CPM017 CL+10
CPM018 CL+10
Proposals and sealed fee proposals CCP 337.15; GC §60201
Proposal Evaluation Materials:
Evaluator certifications, Responsiveness review documents, evaluator scores and
summary sheets, consultant selection memorandum, fee proposal of selected firm,
notice of award recommendation
CCP 337.15; GC §60201
Project Documents - Bids and Proposals:
Insurance certificates, preliminary notices, stop notices, Notice of Completion
CCP 337; CCP 337.15; GC §60201(d)(4); GC
§60201(d)(11); SoS c30 - bids = AU+4
Request for Qualifications and Request for Proposals (RFQ and RFP) - Facilities
Design:
Published RFQ or RFP, Addenda issued, Question and Answer Logs, Outreach
materials, Interview materials
CCP 337.15
Request for Qualifications and Request for Proposals (RFQ and RFP)- Non-
Facilities Design:
Services, Reports, Studies, Published RFQ or RFP, Addenda issued, Question and
Answer Logs, Outreach materials, Interview materials
CCP 337.15
6 Contracts, Purch. & Materials Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
ENG001 CL+2
ENG002 LF
ENG003 20
ENG004 CL+2
ENG005 LO
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Terminated
Secretary of State Vital EngineeringUnited States Code
Water Code
Citation Codes Retention Codes
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Penal Code (CA) Superseded
Office of Management & Budget Separated
Revenue & Taxation Code
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
CEQA Documents with outside Cities/Agencies
14 CCR §15095(c); 14 CCR§ 15208; 14 CCR §15075,
15094; 14 CCR §15062; 14 CCR §15112; GC §60201;
GC §60201(d)(10); SoS c27
Planning Coordination
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Internal Revenue Code Life of Organization or Permanent
Orange County Sanitation District
Records Retention Schedule
CEQA Correspondence with outside Cities/Agencies:
Letters, meeting minutes
City or County Plans:
Specific Plan, Master Plan
Utility Requests:
Received Plans, OCSD response
General Correspondence:
Letters, meeting minutes
14 CCR §15095(c); 14 CCR§ 15208; 14 CCR §15075,
15094; 14 CCR §15062; 14 CCR §15112; GC
§60201(d)(10); SoS c27
Planning Coordination
SoS c28; SoS c27; SoS c26; GC §60201(d)(10)
Planning Coordination
GC §60201; SoS c29
Planning Coordination
SoS c23; GC §60201(d)(3); SoS a2
Planning Coordination
7 Engineering Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Terminated
Secretary of State Vital EngineeringUnited States Code
Water Code
Citation Codes Retention Codes
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Penal Code (CA) Superseded
Office of Management & Budget Separated
Revenue & Taxation Code
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Internal Revenue Code Life of Organization or Permanent
Orange County Sanitation District
Records Retention Schedule
ENG006 LO
ENG007 CL+10
ENG008 CL+10
ENG009 CL+10
ENG010 CL+10
ENG011 CL+10
Agreements, Annexations, Land Records, Connection Permits, Encroachment
Permit Supporting Documentation:
Letters, meeting minutes
Project Development:
Correspondence, Feasibility Study, Gate Review, Meeting Agenda and Minutes,
Project Photos, Handoff Documents, Consultant Monthly Report
Preliminary Design:
Correspondence, Design Submittal, Gate Review, Meeting Agenda and Minutes,
PDR Documentation, Project Photos, Public Outreach, Consultant Monthly Report
Design:
Consultant Monthly Report, Correspondence, Design Submittal, FDS, Gate
Review, Meeting Agenda and Minutes, Project Photos, Public Outreach, Handoff
Documents, ETAP Documents
Construction and Installation:
Consultant Monthly Report, Contract Submittal, Correspondence, Gate Review,
Inspection Documentation, Meeting Agenda and Minutes, Project Photos, Public
Outreach, Requests and Changes (Bulletin, Contractor Cost Proposal, Delay and
Schedule Analysis, Field Change Order, Request for Change, Request for
Information, Request for Proposal, Time and Materials Report), Safety
Documentation, ETAP Documents
GC §60201(d)(8)
Planning Coordination
GC §60201
CIP Project Document
GC §60201
CIP Project Document
GC §60201
CIP Project Document
CCP §337.15
CIP Project Document
Commissioning:
Correspondence, Gate Review, Meeting Agenda and Minutes, Project Photos,
Substantial Completion-Beneficial Use, Use Prior to Completion, Substantial
Completion, Final Completion, Testing Documentation
CCP §337.15
CIP Project Document
8 Engineering Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Terminated
Secretary of State Vital EngineeringUnited States Code
Water Code
Citation Codes Retention Codes
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Penal Code (CA) Superseded
Office of Management & Budget Separated
Revenue & Taxation Code
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Internal Revenue Code Life of Organization or Permanent
Orange County Sanitation District
Records Retention Schedule
ENG012 CL+10
ENG013 CL+10
ENG014 CL+10
ENG015 CL+10
Closeout:
Correspondence, Gate Review, Meeting Agenda and Minutes, Project Photos, Final
Acceptance and Release of Retention, Warranty Documentation
Professional Service Agreement:
Solicitation (Addendum and Question Answer Document, Award Document,
Meeting Agenda and Minutes, Proposal and Evaluation, Protest Document, Request
for Proposal, Request for Qualification, Scope of Work, Sole Source, Statement of
Qualification and Evaluation), Contract Administration (Agreement Closeout,
Amendment and Reallocation, Conformed Agreement Package, Consultant Invoice)
Professional Design Service Agreement:
Solicitation (Addendum and Question Answer Document, Award Document,
Meeting Agenda and Minutes, Proposal and Evaluation, Protest Document, Request
for Proposal, Request for Qualification, Scope of Work, Sole Source, Statement of
Qualification and Evaluation), Contract Administration (Agreement Closeout,
Amendment and Reallocation, Conformed Agreement Package, Consultant Invoice)
Professional Construction Service Agreement:
Solicitation (Addendum and Question Answer Document, Award Document,
Meeting Agenda and Minutes, Proposal and Evaluation, Protest Document, Request
for Proposal, Request for Qualification, Scope of Work, Sole Source, Statement of
Qualification and Evaluation), Contract Administration (Agreement Closeout,
Amendment and Reallocation, Conformed Agreement Package, Consultant Invoice)
GC §60201(d)(12); CCP §337.15
CIP Project Document
GC §60201(d)(12); CCP §337.15
Contract Documentation
GC §60201(d)(12); CCP §337.15
Contract Documentation
GC §60201(d)(12); CCP §337.15
Contract Documentation
9 Engineering Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Terminated
Secretary of State Vital EngineeringUnited States Code
Water Code
Citation Codes Retention Codes
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Penal Code (CA) Superseded
Office of Management & Budget Separated
Revenue & Taxation Code
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Internal Revenue Code Life of Organization or Permanent
Orange County Sanitation District
Records Retention Schedule
ENG016 CL+10
ENG017 CL+10
ENG018 CL+10
ENG019 CL+10
GC §60201; CCP §337.15
Cost and Schedule Documentation
14 CCR §15095(c); 14 CCR§ 15208; 14 CCR §15075,
15094; 14 CCR §15062; 14 CCR §15112; GC
§60201(d)(10); SoS c27
Permits and CEQA Documentation
Construction Agreement:
Solicitation (Addendum and Question Answer Document, Award Document, Bid
and Evaluation, Invitation for Bid Document, Meeting Agenda and Minutes,
Protect Document, Sole Source) Contract Administration (Certified Payroll,
Change Order, Claims Documentation, Conformed Contract Package, Contract
Closeout, Contractor Progress Payment, Other Agreement, Stop Notice Request-
Release
Task Order:
Solicitation (Addendum and Question Answer Document, Award Document,
Meeting Agenda and Minutes, Proposal and Evaluation, Protest Document, Request
for Proposal, Request for Qualification, Scope of Work, Sole Source, Statement of
Qualification and Evaluation), Contract Administration (Agreement Closeout,
Amendment and Reallocation, Conformed Agreement Package, Consultant Invoice)
GC §60201(d)(12); CCP §337.15
Contract Documentation
GC §60201(d)(12); CCP §337.15
Contract Documentation
Budget Documentation:
Budget Table and Schedule Documentation (Construction Schedule
Documentation)
CEQA Documentation:
Correspondence, Meeting Agenda and Minutes
10 Engineering Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Terminated
Secretary of State Vital EngineeringUnited States Code
Water Code
Citation Codes Retention Codes
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Penal Code (CA) Superseded
Office of Management & Budget Separated
Revenue & Taxation Code
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Internal Revenue Code Life of Organization or Permanent
Orange County Sanitation District
Records Retention Schedule
ENG020 LF
ENG021 LF
ENG022 LF
ENG023 LO
ENG024 LF
ENG025 LF
GC §60201
Permits and CEQA Documentation
GC §60201
Facility Records
GC §60201
Facility Records
GC §60201; CCP §337.15
Facility Records
GC §60201
Facility Records
Permits Documentation:
AQMD, Army Corp of Engineer, CA Coastal Commission/Coastal Development,
Certification of Environmental Compliance, Contaminated Soil Manifest,
Dewatering Data, Encroachment/Right of Way, Mitigation Measure Monitoring
Reporting, Other, Permit for Construction, RWQCB, Storm Water Compliance
Reporting
Engineering Drawing:
Conformed Set Drawings, Record Drawings (Tunnel Cross-Section, Vault Detail),
Shop Drawings
CEQA:
Draft EIR, EIR Addends, EIRs OCSD, Final EIR, Neg Dec-Mitigated Neg Dec,
Notice of Exemption, Notice of Preparation
Code and Standards
Design Documentation:
Engineering Study and Analysis, Technical Memoranda
Inspection:
Electrical Test Report, Geotechnical Report, Instrumentation Testing, Materials
Testing Report, Mechanical Testing, Other Test Report, Soil Report, Structural
Testing, Survey Report
GC §60201
Facility Records
11 Engineering Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Terminated
Secretary of State Vital EngineeringUnited States Code
Water Code
Citation Codes Retention Codes
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Penal Code (CA) Superseded
Office of Management & Budget Separated
Revenue & Taxation Code
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Internal Revenue Code Life of Organization or Permanent
Orange County Sanitation District
Records Retention Schedule
ENG026 LO
ENG027 LO
ENG028 LF
ENG029 S+2
ENG030 LF
GC §60201
Facility Records
GC §60201; SoS §c29; SoS §c44
Facility Records
GC §60201
Facility Records
Report:
Air Quality, Annual Report, Inspection Report, Master Plans OCSD, Preliminary
Design Report/Tech Memo, Reports Technical, Planning Study Report
Specification Conformed
Connection Permit:
Trunk Sewer Connection Permit
Facility Permits:
AQMD, Army Corp of Engineer, CA Coastal Commission/Coastal Development,
Dewatering Data, RWQCB, EPA, CA Dept. of Fish & Game, OCFCD Permit,
Railway Permit
Land Records:
Agreement, Annexation, Easement, Grant Deed, Permit, Quit Claim Deed, Utility
Agreement, Will Serve Letter, Encroachment Permit
GC §60201(d)(8)
Facility Records
SoS §c27
Facility Records
12 Engineering Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
ESD001 7
ESD002 LO
ESD003 LO
ESD004 7
ESD005 6
ESD006 LO
ESD007 7
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Secretary of State Vital Environmental ServicesUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
AQMD Permits:
Various Equipment and Engines Operation GC §60201; SoS c26
Biosolids Management Records:
Biosolids Hauling, Use, EMS Activities
40 CFR §503.17; 40 CFR §122.41(j)(2); 40 CFR §122.21;
SOS c47
Chain of Custody - Laboratory
GC §60201; SoS c22; 40 CFR 403.12(o); 40 CFR
503.17(a)(3)(i); (a)(4); 40 CFR 122.41(j)(2); 122.21(j)(4)-
(6)
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Air Quality & AQMD Files:
Testing Reports and Permit Applications CCP §338(k); SOS c27; SoS c17
Collection Systems Records:
Problem Reports and Customer Complaints
GC §60201; Business Value; SoS c33 - Public Safety;
SoS c43
Compliance Program Documentation:
Storm Water, SSO, Post Construction Mitigation, SSMP (WDR)
SoS c25; SoS c27; SoS c45; 40 CFR 141.33; 40 CFR Part
141; 40 CFR 122.41
Data Packet - Analytical Chemistry & Metals:
QA QC Reports, Final Processed Data Copies, Raw Data, LIMS Reports,
Extraction Sheets, Comments & Corrective Actions
GC §60201; SoS C33
13 Environmental Services Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Secretary of State Vital Environmental ServicesUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
ESD008 LO
ESD009 LO
ESD010 LO
ESD011 LO
ESD012 LO
ESD013 7
ESD014 6
ESD015 LO
Interagency (Outside) Agreements and Documentation MOU, Correspondence EPA GC §60201; GC §60201(d)(1); SoS c-24
Environmental Audit Records:
Internal Audits Within OCSD GC §60201
Environmental Audit Records :
Conducted By OCSD GC §60201
Environmental Audit Records :
External Audits Conducted By Outside Agencies GC §60201; SOS c27; SoS c17
OMP Field Datasheets:
Field Data and Collection Documentation, Animal Counts, Fish Collection
Observations
GC §60201; SoS c46; 40 CFR 141.33
Lab SOP's GC §60201
Laboratory Records:
Data Logs, Lab Equipment Maintenance and Sterilization GC §34090.7, SOS c22; 40 CFR 141.33; 141.19
Non Permittee Files:
Inspection reports data, correspondence GC §60201
14 Environmental Services Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Secretary of State Vital Environmental ServicesUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
ESD016 LO V
ESD017 EX+6
ESD018 LO H
ESD019 LO
ESD020 LO
ESD021 3
Permits, NPDES 40 CFR §122.41(j)(2), 40 CFR §403.12(o)
Permittee Files:
Discharge Permits and Urban Runoff 40 §CFR 122.41(j)(2), §403.12(o)
Waste Hauler Manifests 40 CFR §403.12(o)(v)(2)
Published Articles GC §60201; SoS c24
Underground Storage Tanks 23 CCR §2772; SOS c33
Unprocessed Instrumentation Files & Lab Reports:
Compliant DMR's, Annual Reports, Lab Database GC §60201; 40 CFR § 122.41(j)
15 Environmental Services Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
FAD001 4
FAD002 CL+7
FAD003 CL+7 V
FAD004 LO
FAD005 LO
FAD006 S+5
FAD007 6
FAD008 LO V
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Accounting Reports:
Quarterly and Monthly Reports GC §60201; SOS a1
Secretary of State Vital Financial & Admin. ServicesUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
Audit Records:
Financial Statements, Audit Management Letters, Comprehensive Annual Financial
Report (CAFR)
GC §60201 et seq.; SoS c30
Bank Signature Cards GC §60201; Retain for 5 years after superseded
Banking Records:
Deposit Receipts, Bank Statements, Checking Account Reconciliation, Cash
Transfer Report, Adjustments - Returned Checks (NSF), Etc.
GC §60201; SOS c29; SoS c 30
Accounts Payable Files:
Vendor and Contractor Invoices, Bills, Statements, Any Non-Discharged Debt GC §60201(d)(12); SOS c29; CL referes to final payment
Accounts Receivable Files GC §60201(d)(12); CCP §337 et seq.; SOS c29; CL
referes to final payment
Annual Report - Financial GC §60201; SOS c30
Bonds:
Certificates of Participation, Transcripts, Disclosure Reports, Registers, Issue
Records Determination of Allocation
CCP §336(a), §337.5; GC §43900 et seq.; GC §60201 et
seq.
16 Financial & Admin. Services Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital Financial & Admin. ServicesUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
FAD009 LO V
FAD010 5
FAD011 7
FAD012 7
FAD013 7
FAD014 10
FAD015 Indefinite
FAD016 LF V
FAD017 LO V
Check Records:
Cancelled Payroll Checks, Voided Copies For Automatic Deposits, Registers,
Requests
GC §60201(d)(12); CCP §337; SOS c29
Capital Facility Capacity Charges (CFCC) GC §60201(d)(12); CCP §337; SOS c29
Expense Reports GC §60201(d)(12); CCP §337, SOS a1
Budgets (Adopted)GC §60200; Vital During Current FY; SoS c29
Budgets vs Actual:
Supporting Documentation Summaries, Worksheets, Goals and Objectives,
Milestones
GC §60201; §34090; SOS c29
General Ledger SOS c29, GC §60201(d)(12)
Financial Statements SOS c39
Financial System:
ERP Database, Access Database, Utility Billing Data Fields / Records are interrelated; GC §60201
Fixed Asset Records GC §60201; SOS c29; Life of Asset
17 Financial & Admin. Services Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital Financial & Admin. ServicesUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
FAD018 LO
FAD019 LO
FAD020 LO
FAD021 CL+7
FAD022 LO
FAD023 CL+7 V
Investment Records:
Policy, transaction records, summary of portfolio, asset detail etc.GC §34090; CCP §337; GC §53607; SOS c30
Journal Entries GC §60201; CCP §337; SOS c29
Payroll Records:
Timesheets, Payroll Registers and Reports, Unemployment Claims, Garnishments,
Payment Of Labor Costs Including Salaries, Wages, Compensation and Deductions
For Employees, Board Members and Contractors, (DE-6 & 941 Forms - Quarterly
and Annual Payroll Tax Returns)
GC §60201(d)(12); CCP §337; 29 CFR §§516.5,
516.6(a)(1); IRS Reg. §31.6001-1(e)(2); 26 CFR §1.6001-
1; R&T §19530; 29 CFR 516.5(a)-(b)
Local Resources Program Reports (LRP) / Water Certifications GC §60201; 40 CFR 141.91
OCERS File
Copies of OCERS payments, statements, etc.
GC §60201(d)(12); 29 CFR §516.6(a)(1); CL refers to
final payment
OCERS Retirement Report GC §60201(d)(12); 29 CFR §516.6(a)(1); Business Value
18 Financial & Admin. Services Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital Financial & Admin. ServicesUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
FAD024 7
FAD025 10
FAD026 7
FAD027 LO
FAD028 7 V
FAD029 7
FAD030 7
Petty Cash Records GC §60201(d)(12); CCP §337; SOS a1
Rate Studies GC §60201; Business Value
Tax Records - Vendor GC §60201
Trial Balance Records SoS c22; GC §60201(d)(12); GC §60201(d)(4)
Rebates and Refunds
Sewer Service Fees GC §60201
State Controllers Reports GC §60201; SoS c30
Tax Records - Employee:
W-2's, 1099R, Annual Information Returns for Employees and Retirees
29 CFR §516.5; SOS c30; IRS Reg. §31.6001-1(e)(2);
R&TC §19530; 29 CFR §516.5 - 516.6; 29 USC §436;
GC §60201(d)(12); 29 CFR §31.605-1, §31.600-1(d)
19 Financial & Admin. Services Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
GMO001 LO V
GMO002 LO
GMO003 S+2
GMO004 NN
GMO005 2
GMO006 S
GMO007 2
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Annual OCSD Reports GC §60201
Secretary of State Vital General Manager's OfficeUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
Blast Program Files -
Minutes, Marketing Material, Evaluations, Quarterly Reports
SoS c19; GC §60201; Destroy Quarterly Reports when
superseded plus 2 years
Blast Working Documents -
Member Rosters - Active and Inactive
Non-record; GC §60201; Can submit for destruction when
no longer has business value
GM Monthly Reports GC §60201
Blast Development Records
Research Material, Timeline, Photos
SoS c28; GC §60201; Non-Historical photos can be
deleted when no longer needed.
Blast Procedures GC §60201; SoS c23
Blast Professional Development Articles (From External Sources) GC §60201; Can submit for destruction when no longer
has business value
20 General Manager's Office Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital General Manager's OfficeUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
GMO008 LO H
GMO009 2
GMO015 NN H
GMO016 7
Historical Records GC §60201
Meeting Files - Executive Management Team (EMT) -
Agenda, Minutes, Agenda Report, Handouts SoS a2; GC §60201; EMT Meeting Minutes keep LO
Speeches and Presentation
GC §60201; Can submit for destruction when no longer
has business value; Some records may be kept for
historical value
Travel Records GC §60201
21 General Manager's Office Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
HRD001 LO
HRD002 CL+7
HRD003 LO V
HRD004 LO
HRD005 CL+3
HRD006 LO C
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Classification & Compensation -
Class & comp studies, class specifications, salary surveys, salary schedules, pay
types, reclass requests, desk audits, etc.
29 CFR §1627.3; GC §12946; GC §60201; SOS c21
Secretary of State Vital Human ResourcesUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
EEO-4 Reports and Files -
Documents Required to Generate EEO-4 Report, etc.29 CFR §1602.30
Employee & Labor Relations Files -
Memorandums of Understanding (MOU), Arbitration, Grievances, Union Requests,
Employee Rights, Appeals, Investigations, PIP, Disciplinary Actions and
Complaints, Sexual Harassment, Civil Rights, etc.
29 CFR §516.5; GC §12946; sops c20; GC §60201; 29
CFR §1602.31; 29 CFR §1627.3(b)(1)(ii); SOS c20
Temporary Employees -
Hiring documents, tracking spreadsheet, request forms, etc.
CCP §§336(a); 337 et. seq.; GC §60201; SOS c22, CCP
§343
Deferred Compensation Records -
Participation agreements
26 CFR §31.6001-1(e)(2); 26 CFR §16001-1; 29 CFR
§1627.3; SOS c30
District Benefit Contracts & Summary Plan Descriptions -
Health, dental, vision, etc. benefit contracts, benefits summary plan descriptions
(health, dental, vision, other), etc.
9 CFR §1627.3(b)(2); 29 USC §1027; 11 CCR §560; 28
CCR §1300.85.1; GC §60201
22 Human Resources Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital Human ResourcesUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
HRD007 T+7
HRD009 Indefinite
HRD010 T+3
HRD011 T+30 C
HRD012 S+2
HRD013 T+7 V C
Employee Benefit Plans and Programs -
Health Insurance, Supplemental Life Insurance, Beneficiary Designations, Records,
etc., Repayment Agreements, Eligibility Changes, Development Pay, Rideshare.
CG §12946; GC §60201; GC §60201(d)(12); 29 CFR
§1627.3(b)(2); 29 CFR §§1602.30, 32; Labor Code
§1197.5 Retirees: Death+7
Organization Charts GC §60201(d)(1) et seq.
Personnel Files -
Includes Application, Awards, Disciplinary Actions, Certifications,
Commendations, Employment Verifications, (pre-2011) Evaluations, Licenses,
Status Change Forms, Policy acknowledgements, Waiver of responsibility for
voluntary activities, Training records, etc., Pay Docs, Emergency Contacts, Change
of Address, Outside Employment, Resignation
29 CFR §§1602.31,1627.3(b)(ii), 8 CCR §3204(d)(1) et
seq., GC §§12946, 60201; 29 USC §1113. Vital until
separation. Excludes Medical Records see Retention Code
HRD011
Human Resources / ERP Database -
Electronic records management - JDE, Cornerstone, WorkTerra, etc.
Data Fields / Records are interrelated; GC §60201; JDE
Database
I-9 Forms & Self-Identification Forms 8 USC §1324a(b)(3)(B); 8 CFR §1274a.2(b)(2)(i)(A)
Medical Files -
Fitness for Duty, Leaves of Absence, etc., Interactive Process, Worker's Comp
8 CCR §3204(d)(1) et seq., GC §§12946, 60201; Filed
separately.
23 Human Resources Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital Human ResourcesUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
HRD014 CL+3
HRD015 CL+7 H
HRD016 T+7
HRD017 CL+3 H
HRD018 EX+5
Recruitment Records -
Advertisements, Job Brochures, Test Data, Rating Sheets, Questions, Eligibility
Lists, etc. electronic/NEOGOV records
29 CFR §1602 et seq & §1627.3(a)(b), 2 CCR
§7287.0(c)(2), 8 CCR §11040, GC §§12946; Database
Neogov Indefinite. Retention begins after hiring decision.
District Benefit Plans -
Benefits summary plan descriptions (health, dental, vision, other), etc.GC §60201; SOS c21
Training Program Records -
Class Attendance Sheets, Schedules, Classes Offered, Curriculum or Syllabus, and
Training Materials Development
GC §60201, SOS c21; Data Fields / Records are
interrelated; Training Database Indefinite; Non-database
paper personnel training records TE+7 See Retention Code
HRD013; Not employee specific.
Background Checks -
Candidate background checks GC §60201; SOS c21
Human Resources Programs -
Rideshare, Tuition Reimbursement, Computer Loan, Development Pay SharePoint for electronic
24 Human Resources Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
ITD001 T+3
ITD002 LF+2 V
ITD003 S+2 V
ITD004 S
ITD005 2
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Secretary of State Vital Information TechnologyUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
Wiring Specs and Test Results - Loop Drawings GC §60201; SoS c22; SoS a1 (Active until
revised/rescinded/superseded)
System and Software Documentation:
Network Design, Instruction, Licenses, License Codes, Agreements, Systems List,
Permission to Directories, SharePoint Lists, Hardware and Software
Documentation, Source Code, IT Manuals
SOS c22; Life of System, GC §60201, Superseded With
Version Updates, GC §34090 et seq.; Source Code is Kept
in Escrow, Retain until it no longer has business value; GC
§34090 et seq.; Until system is no longer operational
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Access Authorization Forms:
Email Access Requests, Internet Access Requests, Mobile Devices Access GC §60201
Information Logs:
Internet, Phone, Badge, Visitors GC §60201
Data is interrelated; GC §60200; GC §60201 et seq.GIS (Geographic Information System) Database:
Layers
25 Information Technology Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Secretary of State Vital Information TechnologyUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
ITD006 CL+3
ITD007 4 V
ITD008 S+2
ITD013 S+2
ITD015 1
IT Asset Inventory Database:
IT assets, Printers, Hardware, SSCM, Server Lists, Asset Explorer GC §60201; GC §34090 et seq.
System Log (Database):
Transaction Logs, Error Logs Until superseded or overwritten; SoS c22
IT Help Desk System:
Service Tickets, Change Requests and Releases GC §60201
Network Diagrams/ System Configurations/ Maps/ Plans Retain until it no longer has business value; GC §60201;
GC §34090 et seq. ; SoS c22
Video Surveillance Files and System Security Database
GC §§53160, 53161- Based on government code we are
required to keep video monitoring for 1 year and
telephone/radio communications for 100 days. They can be
destroyed after these time periods with the following
exception:
If written minutes or an audio recording of the video is
taken, the video can be destroyed after 90 days. The
written minutes and audio recording can be destroyed after
2 years. Retain until it no longer has business value or until
overwritten; GC §60201; GC §34090 et seq.
26 Information Technology Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Secretary of State Vital Information TechnologyUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
ITD016 EX+2
ITD018 NN V
ITD019 LO
ITD020 S+3
ITD021 NN
ITD022 LO V
Records Destruction Records:
Approvals, Certificates, Requests GC §60201
Two-Way Radio Licensing and Information GC §60201; GC §34090
Virtual Computer Files GC §34090.7; SOS c22; Replicated for disaster recovery
purposes
Records Management Annual Audits:
Inventory, Storage, Destruction, etc. GC §60201
Records Management Project Files GC §60201; SOS c23; Can submit for destruction when
no longer has business value
Records Retention Schedules
CCP §343; SOS c23 Enacted by Board Resolution and
retained Indefinitely. Includes schedule amendments.
Schedules are superseded when updated.
27 Information Technology Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
OMD001 2
OMD002 2
OMD003 3
OMD004 LO
OMD005 30
OMD006 3
OMD007 2
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Chemical Inventory Records:
Delivery, Transfer, Usage, Manifest Worksheet and Inventory Logs
GC §60201; 49 CFR 172.704(d); 49 CFR 199.117; SoS
c33
Secretary of State Vital Operations & MaintenanceUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
Logs - Control Center Plant Operations GC §60201
Logs
Operations Monthly Logs, Inspector Diaries, Control Center Visitor Logs GC §60201; 40 CFR 122.41(j)(2)
Monthly Reports:
Operating and Status Reports GC §60201
Complaint Files and Problem Reports:
Related to Organizations Operations - Odor, Noise, Call Center Complaints GC §60201; SoS c42
Confined Space Entries 40 CFR §122.41(j)(2); SoS c42
Flow Records GC §60201
28 Operations & Maintenance Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital Operations & MaintenanceUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
OMD008 S+5
OMD009 2
OMD010 5
OMD011 LO
OMD012 S
OMD013 2
OMD014 7
Process Data:
Includes Electronic MSO's and TPODS GC §60201
Reference Files GC §60201; GC §53161
Speeches/Presentations GC §60201; GC §53161
O&M Policies & Procedures GC §60201; SoS c19
Operating Journals:
Round Sheets, Alarm summary, Operations Round Sheets, Midnight Readings, etc. GC §60201; GC §53161
Operating Records:
MSOs (hard copy), AS Plant Reports, Operators Schedules GC §60201; 40 CFR 122.41(j)(2)
AQMD - 1-Cengen emissions Reports, 2-AQMD Round Sheets 3-Flare Rest GC §60201; SoS c27
29 Operations & Maintenance Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital Operations & MaintenanceUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
OMD015 LF+2
OMD016 3
OMD017 LF+2
OMD018 LF+2
OMD019 LF+2
OMD020 5
OMD021 5
OMD022 LO
Generator Operation Logs & Inspections:
Fixed or Stationary GC §34090
Pressure Vehicle CNG Tank Certifications or Permits, Inspections Department Preference; GC §34090 et. seq.; Life of Asset;
SoS c47; SoS c47
Vehicle Smog Check Inspection Report Department preference; GC §60201
Facility Maintenance & Repair GC §60201; Life of Asset + 2 years; SoS c47
Collection System Process Data:
Pump Station, CRISP GC §60201; Business Value
Bit Inspection (CHP Commercial Vehicle Inspection) 49 CFR §396.11(c)(2); GC §60201; Life of the Vehicle +
2 years
Certifications:
Mobile Crane, Vehicles, etc.
Department Preference; 8 CCR §14300.33(a); GC §60201
et seq.; LC §6429c
Chain of Custody:
Source Control, Spilt Sample
OSHA records are required to be retained for 5 years; 8
CCR §14300.33(a); GC §60201 et seq.; SOS c21
30 Operations & Maintenance Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital Operations & MaintenanceUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
OMD023 10
OMD024 10
OMD025 4
OMD026 LF+2
Inspection Reports & Photos - Manhole GC §60201; SOS c45
Sewer Line Maintenance Files GC §60201
Vehicle Inspection & Equipment Checks Files:
Daily Safety Checks, Pre-Starts, Commercial Vehicle Pre-Starts and Forklift
Inspections, Pre-Trip Inspections, CHP Inspections, Daily Vehicle Inspections,
Daily Equipment Checks
49 CFR §396.11(c)(2);49 CFR §396.21(b)(1); GC §60201;
GC §34090
Vehicle Records:
Equipment Files, Maintenance, Registrations, Vehicle Titles ("Pink Slips"), Vehicle
Citations
8 CCR § 3203(b)(1); 49 CFR §396.21(b)(1); 49 CFR
§396.3(c); CCP §337 et. Seq.; GC §34090; Vehicle
Titles/Pink Slips are transferred to new owner upon sale of
vehicle all other records are retained until Disposal of
Vehicle or Equipment + 2 years.
31 Operations & Maintenance Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
PAO001 S+2
PAO002 S+5
PAO003 7
PAO004 LO
PAO005 2
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Education Curriculum:
Sewer Science, Water Festival, etc. SoS c24; GC §60201; Destroy 2 years after superseded
Secretary of State Vital Public AffairsUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
Presentations and Supporting Documents:
(Includes PowerPoints)GC §60201; SOS c24; Non-Marketing related
Outreach/Event File:
Tour Documentation, RSVP's, sign-in sheets, etc.SoS c24; GC §60201
Marketing Material:
Flyers, Brochures, Newsletters, Email Blasts, etc.GC §60201; SOS c19
Photos & Videos GC §60201; Non-Historical Photos can be deleted when no
longer needed.
32 Public Affairs Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital Public AffairsUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
PAO006 LO
PAO007 2
PAO008 Indefinite
PAO009 LO
PAO010 LO
PAO011 LO
Press/Media Releases GC §60201; SOS c40
Publication Proofs - Non Board Related General Marketing GC §60201; SOS c24
Social Media Posts:
Facebook, Twitter, YouTube, Instagram, Etc.GC §60201
Website Content GC §60201
Employee Events:
Agency Awards, Recognitions, Announcements GC §60201
Legislative Files:
Letters of Support, Opposition, Plan Consolidation GC §60201; SoS c28
33 Public Affairs Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
RMS001 LO V
RMS002 5
RMS003 NN
RMS004 LO V
RMS005 LO V
RMS006 LF
RMS007 T+30
RMS008 LO
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Certificate of Insurance CCP §337.15; SOS c24
Secretary of State Vital Risk Management & SafetyUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
EOC Activation Notifications & Records GC §60201; 29 CFR 1910.119(g); 29 CFR §1910.120(q)
Industrial Hygiene & Safety Files - Location:
Hazard Assessments, Site Assessments, Industrial Hygiene Reports, Surveys, Audits 8 CCR §3204; 29 CFR §1910
Medical Files - Occupational:
Fit Testing 8 CCR §3204; 29 CFR §1910
DOT Random Drug & Alcohol Test Records 29 CFR §1627.3(b)(v); 49 CFR §382.401 et seq.; GC
§12946, GC §60201
Emergency Exercises & Drills, After Action Reports GC §60201; 29 CFR 1910.119(g); 29 CFR §1910.120(q)
Emergency Response & Disaster Recovery Files GC §60201; 29 CFR 1910.119(g); 29 CFR §1910.120(q)
OSHA Compliance Records:
Citations, Appeals Related, Correspondence, etc.
OMB 1220-0029; 29 CFR §1904.4; SOS a2; For OSHA
300 and 301 logs See Retention Code RMS012
34 Risk Management & Safety Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital Risk Management & SafetyUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
RMS009 CL+5
RMS010 2
RMS011 LO
RMS012 7
RMS014 CL+7
RMS015 LO
RMS016 5
RMS017 5
Workers Compensation Files CCR §14311; §15400.2; LC §110-139.6; SOS c24
OSHA Logs:
300 & 301 Logs
8 CCR §14300.33(a); 29 CFR §1904.33, 29 CFR
§1904.44; GC §60201 et seq.; LC §6429c
Risk Management Reports OMB 1220-0029; 29 CFR §1904.4; SOS c24
Risk & Safety Committee and Meeting Documents 8 CCR §3203 et seq.; GC §60201 et seq.
Calibration Gas Detectors Annual Recertification 8 CCR §14300.33(a); 29 CFR §1904.33, 29 CFR
§1904.44; GC §60201 et seq.; LC §6429c
Accident & Incident Records GC §60201; CCP §338; CFR §1904.6; SOS c24
Asbestos & Lead Abatement Records GC §60201; CCR §1529(n)6
Hazardous Materials Records:
Business Plans, Hazardous Materials Inventory, Disclosures GC §60201; 40 CFR §122.21(p); 40 CFR §122.41
35 Risk Management & Safety Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital Risk Management & SafetyUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
RMS018 3
RMS019 LO V
RMS020 LO
RMS021 LO V
RMS024 7
RMS025 LO
RMS026 LO
Confined Space Records 5157(e)(6); 5157(d)(14); 29 CFR 1910.146(e)(6); GC
3400, 53161
Hazardous Waste Records:
Manifests, Disposals, Recyclable Non Hazardous Waste Material, Batteries, etc.
8 CCR §3204(d)(1) et seq.; 40 CFR §122.41(j)(2); 40 CFR
§141.33(b); 26 CCR §22-64470(a); GC §12946, §60201;
CCR §66262.40(a), §66264.71(b)(6), SOS c47
Training Records - Safety:
Rosters, Syllabus, Schedule, Curriculum Material Only GC §60201; SOS c21; Applies to Paper Records
Training Database GC §60201; Records in Cornerstone Database are
Indefinite
Radiation License & Disposal Records GC §60201
HazMat Permits, Environmental Health Permits:
Bulk Chemicals, Fire, UST, Battery Storage, etc.GC §60201
Safety Data Sheets (SDS)8 CCR §5194; 29 CFR §1910
36 Risk Management & Safety Adopted: TBD
CCP C
CCR CL
CFR EX
EC EL
GC H
H&S LF
IRC LO
IRS MA
LC NN
PC S
OMB SP
R&TC T
SOS V
USC
WC
Vital Confidential Historical
Revenue & Taxation Code Terminated
Internal Revenue Code Life of Organization or Permanent
Internal Revenue Service Maturity
Labor Code (CA) When No Longer Needed
Code of Civil Procedure (CA) Confidential
California Code of Regulations Closed or Completed
Code of Federal Regulations Expired or Expiration
Penal Code (CA) Superseded
Office of Management & Budget Separated
Retention
Number Record Type
Retention
Length (Years
Unless Specified)
Special Storage Consideration
Retention Citations / Comments
Secretary of State Vital Risk Management & SafetyUnited States Code
Water Code
General Retention Schedule Information
Any Public Records Act requests, litigation, audits, claims and investigations suspends the
stated retention periods. Authorization and proper destruction methods are required prior to
destroying all official records as stated in the District's Records Retention Policy. Retention
and destruction of records applies to all media types including both paper and electronic
documents.
Copies, notes, preliminary drafts and transitory records can be destroyed when no longer
needed for District business and do not require prior authorization. *When original records
have reached their destruction term all copies and duplicates must be destroyed along with
the original, regardless of the media of the record.
Official Records cannot be discarded in trash bins. They must be submitted to Records
Management for secure destruction.
Elections Code (CA) Electronic
Government Code (California) Historical
Health & Safety Code Life of Facility, Equip. or Software
Citation Codes Retention Codes Orange County Sanitation District
Records Retention Schedule
RMS027 CL+2
RMS028 S
RMS029 2
RMS030 T+30
RMS031 LO
Industrial Hygiene & Safety Files - Personnel:
Industrial Hygiene Reports - Air Sampling, Noise Testing and Workplace
Contaminants
GC §60201; 3204 - (d)(1)(B); 29 CFR 1910.1020
Claims GC §60201
Job Site Safety Analysis (JSSA), Job Hazard Analysis (JHA), Hot Work Permits
GC §60201; 29 CFR 1910.252; 29 CFR 1910.132; 29
CFR 1904.6 -
O.M.B. No. 1218-0176
PPE Assessments GC §60201; 29 CFR 1910.132
Lock Out Tag Out Audits (LOTO)GC §60201; 29 CFR 1910.147; (c)(7); (f)(2); (c)(6)
37 Risk Management & Safety Adopted: TBD
Page 1 of 4
ADMINISTRATION COMMITTEE Meeting Date 12/12/18 To Bd. of Dir. 12/19/18
AGENDA REPORT Item Number 3 Item Number
Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: INVEST AND/OR REINVEST DISTRICT’S FUNDS
GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 18-XX, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District, Authorizing the District’s Treasurer to Invest and/or
Reinvest District’s Funds, Adopting District’s Investment Policy Statement and Performance Benchmarks, and Repealing Resolution No. OCSD 17-17”. BACKGROUND
This agenda item presents an update to the Orange County Sanitation District's (Sanitation District) Investment Policy Statement to the Administration Committee for consideration in the Committee's capacity as the oversight committee for the Investment Policy (Section 18.2). With adoption of the Resolution, the Board of Directors would readopt the Sanitation District's current Investment Policy Statement, portfolio
performance benchmarks, and monitoring and reporting requirements for calendar year 2019. The Sanitation District's Investment Policy Statement was previously approved by the Administration Committee and Board for calendar year 2018 in December 2017.
RELEVANT STANDARDS
• Orange County Sanitation District Investment Policy
• California Government Code Sections 53607 and 53646 PROBLEM
California Government Code Section 53607 allows for the Board of Directors to delegate authority to invest and/or reinvest the Sanitation District’s funds to the Treasurer for a one-year period. California Government Code Section 53646 requires the Sanitation District to review its Investment Policy annually and readopt its Policy at a public meeting, which will establish specific performance benchmarks and objectives, and specific
monitoring and reports. On December 20, 2017, the Board of Directors adopted Resolution No. OCSD 17-17, entitled “A Resolution of the Board of Directors of the Orange County Sanitation District, Authorizing the District’s Treasurer to Invest and/or Reinvest District’s Funds, Adopting District’s Investment Policy Statement and Performance Benchmarks; and Repealing Resolution No. OCSD 16-19”. Authority
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delegated by the Board of Directors to the Assistant General Manager & Director of Finance and Administrative Services/Treasurer to invest and/or reinvest the Sanitation District’s funds expires on December 31, 2018. Pursuant to California Government Code
Section 53646, the Sanitation District’s Investment Policy must be reviewed and
readopted prior to December 31, 2018. PROPOSED SOLUTION
With adoption of the Resolution, the Board of Directors would renew its delegation of
investment authority to the Assistant General Manager & Director of Finance and Administrative Services/Treasurer for a one-year period, January 1, 2019 to December 31, 2019, in compliance with the requirements of California Government Code Section 53607. Each year, the Board of Directors will consider similar actions, along with
the annual reconsideration of the Sanitation District's Investment Policy. TIMING CONCERNS
The Board of Directors delegation of authority to the Assistant General Manager &
Director of Finance and Administrative Services/Treasurer to invest and/or reinvest the
Sanitation District’s funds will expire on December 31, 2018. Pursuant to California Government Code Section 53646, the Sanitation District’s Investment Policy must be reviewed and readopted prior to December 31, 2018.
RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District’s Assistant General Manager & Director of Finance and Administrative Services/Treasurer will not be able to invest and/or reinvest the Sanitation District’s funds and the Sanitation District will not be in compliance with California
Government Code Section 53646. PRIOR COMMITTEE/BOARD ACTIONS
December 2017 - Board adopted Resolution No. OCSD 17-17, entitled “A Resolution of
the Board of Directors of the Orange County Sanitation District, Authorizing the District’s
Treasurer to Invest and/or Reinvest District’s Funds, Adopting District’s Investment Policy Statement and Performance Benchmarks; and Repealing Resolution No. OCSD 16-19”. ADDITIONAL INFORMATION
The Sanitation District Investment Policy Statement is a comprehensive document describing the policy, authorizations, benchmarks, delegations, and investment limitations contained within these 18 distinct sections.
1.0 Policy
2.0 Scope 3.0 Standard of Prudence 4.0 Investment Objectives
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5.0 Delegation of Authority 6.0 Ethics and Conflicts of Interest 7.0 Authorized Financial Dealers and Institutions
8.0 Authorized and Suitable Investments
9.0 Review of Investment Portfolio 10.0 Investment Pools/Mutual Funds 11.0 Collateralization 12.0 Safekeeping and Custody
13.0 Diversification
14.0 Maximum Maturities 15.0 Internal Control 16.0 Performance Objectives and Benchmarks 17.0 Reporting
18.0 Investment Policy Adoption and Revision
The Investment Policy will govern the investment activities of Chandler Asset Management, the Sanitation District's external money manager, on behalf of the Sanitation District. On December 11, 2012, the Sanitation District's Investment Policy
Statement received the Investment Policy Certification of Excellence Award from the
California Municipal Treasurer's Association (CMTA). A copy of the letter of certification is included each year in the annual Investment Policy document. The Sanitation District received its first Award of Excellence for the Investment Policy Statement in December 1996.
Annual Review of Investment Policy The Investment Policy includes the requirement that the Sanitation District shall review its Investment Policy annually (Sections 1.2 and 18.1).
Chandler Asset Management reviewed the existing policy to ensure that the language remains current with the California Government Code. The proposed Investment Policy is attached with redlined changes from the most recent
approved policy in December 2017. These proposed changes include:
• Updating Section 8.3 under “Authorized and Suitable Investments” to reflect
changes made to California Government Code taking place on January 1, 2019.
On September 6, 2018 California Governor Brown signed AB-1770. The bill changed section (o) in CA Code 53601 to drop the issuer credit requirement.
• Addition of Section 9.0 “Review of Investment Portfolio” to assure that the
securities held by the District is in compliance with Section 8.0 “Authorized and Suitable Investments.”
• Addition of Section 10.0 “Investment Pools/Mutual Funds” to include a section on
investigation and due diligence when governmental sponsored pools and /or mutual funds are included in authorized investments.
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• Updating the Sanitation District Treasury Management Procedures to reflect the replacement of Union Bank with Banc of California as the Sanitation District’s
commercial bank.
Annual Delegation of Investment Authority Effective January 1, 1997, California Government Code Section 53607 states that
governing boards of local agencies may only delegate authority to invest and/or reinvest
agency funds to the agency's Treasurer for a one-year period. CEQA
N/A
FINANCIAL CONSIDERATIONS N/A
ATTACHMENT
The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package:
• Exhibit A - OCSD Calendar Year 2018 Investment Policy Statement (clean & redline)
• Exhibit B - Performance Monitoring and Reporting Schedule and Summary
• Proposed Resolution No. OCSD 18-XX
• Orange County Sanitation District Treasury Management Procedures (clean & redline)
ORANGE COUNTY SANITATION DISTRICT
INVESTMENT POLICY STATEMENT 1.0 Policy:
It is the policy of the Orange County Sanitation District (OCSD) to invest public funds in
a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating expenditure needs, achieving a reasonable rate of return and conforming to all state and local statutes governing the investment of public funds.
1.1. This Investment Policy is set forth by OCSD for the following purposes: 1.1.1. To establish a clear understanding for the Board of Directors, OCSD management, responsible employees and third parties of the
objectives, policies and guidelines for the investment of the OCSD’s idle and surplus funds. 1.1.2. To offer guidance to investment staff and any external
investment advisors on the investment of OCSD funds (see Appendix "A").
1.1.3. To establish a basis for evaluating investment results. 1.2. OCSD establishes investment policies which meet its current investment
goals. OCSD shall review this policy annually, and may change its
policies as its investment objectives change. 2.0 Scope:
This Investment Policy applies to all financial assets of OCSD; except for the proceeds
of OCSD's capital projects financing program, which are invested in accordance with provisions of their specific bond indentures; and such other funds excluded by law or other Board-approved covenant or agreement.
These funds are accounted for by OCSD as Enterprise Funds as represented in
OCSD's Comprehensive Annual Financial Report. 3.0 Standard of Prudence:
The standard of prudence to be used by OCSD internal staff, and any authorized
investment advisor(s), shall be as described in Section 53600.3 of the California Government Code as follows: Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this
chapter are trustees and therefore fiduciaries subject to the prudent investor standard.
When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a
Page 1
like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized
by law. 4.0 Investment Objectives: The primary objectives of OCSD’s investment activities, in priority order, and as
described in Section 53600.5 of the California Government Code, shall be:
4.1 Safety: The safety and preservation of principal is the foremost objective of the investment program of OCSD. Investments shall be selected in a manner that seeks to ensure the preservation of capital in OCSD's overall
portfolio. This will be accomplished through a program of diversification,
more fully described in Section 13.0, and maturity limitations, more fully described in Section 14.0, in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.
4.2 Liquidity: The investment program will be administered in a manner that will ensure that sufficient funds are available for OCSD to meet its reasonably anticipated operating expenditure needs.
4.3 Return on Investments: The OCSD investment portfolio will be
structured and managed with the objective of achieving a rate of return throughout budgetary and economic cycles, commensurate with legal, safety, and liquidity considerations.
5.0 Delegation of Authority: 5.1 Authority to manage OCSD’s investment program is derived from the California Government Code Sections 53600 et seq. and Sections 53635 et seq. The Board of Directors hereby delegates management
responsibility for the OCSD investment program to its Assistant General Manager & Director of Finance and Administrative Services/Treasurer, who shall establish written procedures for the operation of the investment program, consistent with this Policy. The Controller/Assistant Treasurer shall be responsible for day-to-day administration, monitoring, and the
development of written administrative procedures for the operation of the investment program, consistent with this Policy. The current treasury management procedures are presented in Appendix "B." No person may engage in an investment transaction except as provided under the terms of this Policy and the procedures established by the Treasurer. The
Treasurer shall be responsible for all transactions undertaken by OCSD internal staff, and shall establish a system of controls to regulate the activities of internal staff and external investment advisors engaged in accordance with Section 5.3.
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5.2 The administrative procedures for the operation of OCSD's investment program will provide for, but not be limited to, the following: 5.2.1 Formats for monthly and quarterly reports to the Administration
Committee, and the Board of Directors. 5.2.2 Compliance with generally accepted accounting principles of the Government Accounting Standards Board.
5.2.3 Establishment of benchmarks for performance measurement. 5.2.4 Establishment of a system of written internal controls. 5.2.5 Establishment of written procedures for competitive bids and
offerings of securities that may be purchased or sold by internal OCSD staff. 5.2.6 Establishment of a Desk Procedures Manual for treasury operations and management.
5.3 The Board of Directors of OCSD may, in its discretion, engage the services of one or more registered investment advisors to assist in the management of OCSD’s investment portfolio in a manner consistent with OCSD’s objectives. Such external investment advisors, which shall be
selected through a competitive process, shall be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such advisors must be registered under the Investment Advisers Act of 1940, or be exempt from such registration.
6.0 Ethics and Conflicts of Interest: Officers and employees of OCSD involved in the investment process shall refrain from personal business activities that could conflict with proper execution of OCSD's investment program, or which could impair their ability to make impartial investment
decisions. Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions that conduct business within OCSD's boundaries, and they shall further disclose any large personal financial/investment positions, the performance of which could be related to the performance of positions in OCSD’s portfolio.
7.0 Authorized Financial Dealers and Institutions: 7.1 For investment transactions conducted by OCSD internal staff, the Treasurer will maintain a list of financial institutions authorized to provide
investment services to OCSD, including "primary" or regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital rule), and Federal or State of California chartered banks. No public deposit shall be made except in a qualified public depository as established by State law.
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All financial institutions which desire to become qualified bidders for investment transactions with OCSD must supply the following for evaluation by the Treasurer:
7.1.1. Audited financial statements for the institution’s three (3) most recent fiscal years. 7.1.2. A statement, in the format prescribed by the Government Finance Officers Association (GFOA), certifying that the institution has
reviewed OCSD’s Investment Policy and that all securities offered to the Districts shall comply fully and in every instance with all provisions of the California Government Code and with this Investment Policy. The current statement is presented in Appendix "C."
7.1.3. A statement describing the regulatory status of the dealer, and the background and expertise of the dealer's representatives. Selection of financial institutions, broker/dealers, and banks authorized to engage in transactions with OCSD shall be made through a competitive
process. An annual review of the financial condition of qualified institutions will be conducted by the Treasurer. 7.2 Selection of broker/dealers used by external investment advisors retained by OCSD, shall be in compliance with contract provisions between OCSD
and any external investment advisors, and shall be in substantially the following form: Use of Securities Brokers: Neither the Investment Advisor nor any parent, subsidiary or related firm shall act as a securities broker with respect to
any purchases or sales of securities which may be made on behalf of
OCSD, provided that this limitation shall not prevent the Investment Advisor from utilizing the services of a securities broker which is a parent, subsidiary or related firm, provided such broker effects transactions on a "cost only" or "nonprofit" basis to itself and provides competitive execution.
The Investment Advisor shall provide the Districts with a list of suitable
independent brokerage firms (including names and addresses) meeting the requirements of Government Code Section 53601.5, and, unless otherwise directed by OCSD, the Investment Advisor may utilize the service of any of such independent securities brokerage firms it deems
appropriate to the extent that such firms are competitive with respect to
price of services and execution 8.0 Authorized and Suitable Investments:
All investments shall be made in accordance with the California Government Code
including Sections 16429.1 et seq., 53600 et seq., and 53684, and as described within this Investment Policy. Permitted investments under this Policy shall include:
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8.1 Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by the US Government, a federal agency, or a US Government-sponsored enterprise pursuant to Section 53601 (f) of the California Government
Code. US Treasury securities must make up at least 10% of the portfolio. 8.2 Supranational Obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank. Securities
must be eligible for purchase in the United States and be US dollar denominated senior unsecured unsubordinated obligations, with a maximum maturity of five years. Securities eligible for purchase under this section must be rated “AA” or better by a Nationally Recognized Statistical Rating Organization (NRSRO) and shall not exceed 30% of the total
portfolio. 8.3 Mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or
consumer receivable-backed bond. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less. Purchase of securities authorized by this subdivision may not exceed 20 percent of the agency’s surplus moneys
that may be invested pursuant to this section. Purchase of mortgage derivatives, which include interest-only payments (IOs) and principal-only payments (POs); inverse floaters, and RE-REMICs (Real Estate Mortgage Investment Conduits), is hereby prohibited.
8.4 Commercial paper of "prime" quality of the highest ranking or of the
highest letter and number rating as provided by an NRSRO, and issued by a domestic corporation organized and operating in the United States with assets in excess of $500 million and having a rating of "A" or better on its long-term debt as provided by an NRSRO. Purchases of eligible
commercial paper may not exceed 270 days to maturity from the date of
purchase. Purchases of commercial paper shall not exceed 25% of the market value of the portfolio. No more than 5% of the market value of the portfolio, or 10% of the issuer's outstanding paper, may be invested in commercial paper issued by any one (1) eligible corporation.
8.5 Banker’s acceptances issued by institutions, the short-term obligations of which are rated of the highest ranking or the highest letter and number rating as provided by an NRSRO provided that: (a) the acceptance is eligible for purchase by the Federal Reserve System; (b) the maturity does
not exceed 180 days; (c) no more than 40% of the total portfolio may be
invested in banker’s acceptances; and (d) no more than 5% of the total portfolio may be invested in the banker's acceptances of any one (1) commercial bank.
Page 5
8.6 Medium term (or corporate) notes of a maximum of five (5) years maturity issued by corporations organized and operating within the United States, or issued by depository institutions licensed by the United States, or any state, and operating within the United States with assets in excess
of $500 million, and which is rated in a rating category of “A” or better on its long-term debt as provided by an NRSRO. If, after purchase, the rating of an eligible note falls below the minimum rating category stipulated above, the external investment advisor shall notify the District of the downgrade, and shall present an analysis and recommendations as to the
disposition of the note consistent with the investment objectives of this Investment Policy. No more than 30% of the portfolio may be invested in medium term notes. 8.7 Notes, bonds, or other obligations that are at all times secured by a
valid first priority security interest in securities of the types listed by California Government Code Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by California Government Code Section 53652 for the purpose of securing local agency deposits. The securities serving as
collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which
the security interest is granted. 8.8 Shares of mutual funds investing in securities permitted under this policy and under Section 53601 (l) of the California Government Code. Such funds must either: (1) attain the highest ranking, or the highest letter and
numerical rating, provided by not less than two of the three largest nationally recognized rating services; or (2) have an Investment Advisor registered with the Securities and Exchange Commission with not less than five (5) years of experience investing in the securities and obligations authorized under this Policy and under California Government Code
Section 53601, and with assets under management in excess of $500 million. The purchase price of shares of beneficial interest purchased pursuant to this policy, and the California Government Code may not include any commission that the companies may charge, and shall not exceed 20% of the District’s surplus money that may be invested pursuant
to this section. No more than 10% of the District’s surplus funds may be invested in shares of beneficial interest of any one (1) mutual fund pursuant to this section. Money market mutual funds are limited to 20% per issuer and are not subject to the 10% stipulation.
8.9 Certificates of deposit: 8.9.1 Secured (collateralized) time deposits issued by a nationally or state-chartered bank or state or federal savings and loan association, as defined by Section 5102 of the California Financial Code, and having a net
Page 6
operating profit in the two (2) most recently completed fiscal years. Collateral must comply with Chapter 4, Bank Deposit Law, Section 16500
et seq., and Chapter 4.5, Savings and Loan Association and Credit Union Deposit Law, Section 16600 et seq., of the California Government Code.
8.9.2 Negotiable certificates of deposit (NCDs) issued by a nationally or state-chartered bank or state of federal savings and loan association, as defined by Section 5102 of the California Financial Code; and which shall have a rating of "A" or better on its long-term debt as provided by a
NRSRO; or which shall have the highest letter and number rating for
deposits as provided by a NRSRO; or as otherwise approved by the District's Board of Directors. No more than 30% of the portfolio may be invested in securities pursuant to this section.
8.9.3 To be eligible to receive local agency money, a bank, savings
association, federal association, or federally insured individual loan company shall have received an overall rating of not less than “satisfactory” in its most recent evaluation by the appropriate federal financial supervisorial agency of its record of meeting the credit needs of
California’s communities, including low and moderate income
neighborhoods, pursuant to Section 2906 of Title 12 of the United States Code. 8.10 Taxable or tax-exempt municipal bonds issued by any of the 50 United
States. Such securities must be rated “A” or higher by a NRSRO; or as
otherwise approved by the Districts’ Board of Directors. 8.11 The State of California Local Agency Investment Fund (LAIF). The LAIF is an investment alternative for California's local governments and
special districts managed by the State Treasurer's Office. LAIF is more
fully described in the Glossary (See Appendix "H.") The District shall use LAIF as a short-term cash management facility. Investment of District funds in LAIF shall be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review pursuant to Section
3.0, Standard of Prudence, of this Policy. See Appendix "D" for investment pool questionnaire. 8.12 The Orange County Treasurer's Money Market Commingled Investment Pool (OCCIP). The OCCIP is a money market investment
pool managed by the Orange County Treasurer's Office. OCCIP is more fully described in the Glossary. (See Appendix "H.") The District has no funds invested in OCCIP at this time. Investment of District funds in OCCIP would be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review pursuant to Section
3.0, Standard of Prudence, of this Policy.
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8.13 Repurchase agreements provided that: 8.13.1 All repurchase agreements shall be collateralized with securities eligible for purchase under this Policy. In order to anticipate
market changes and to provide a level of security for all repurchase agreement transactions, collateralization shall be maintained at a level of at least 102% of the market value of the repurchase agreements, and shall be adjusted no less than weekly.
8.13.2 All repurchase agreements must be the subject of a Master Repurchase Agreement between OCSD and the provider of the repurchase agreement. The Master Repurchase Agreement shall be substantially in the form developed by The Bond Market Association.
8.14 Reverse repurchase agreements provided that: 8.14.1 No more than five percent (5%) of OCSD’s portfolio shall be invested in reverse repurchase agreements, and there shall be no long-term reverse repurchase agreements unless otherwise authorized by the
Districts’ Board of Directors. 8.14.2 The maximum maturity of reverse repurchase agreements shall be ninety (90) days.
8.14.3 Reverse repurchase agreements shall mature on the exact date of a known cash flow which will be unconditionally available to repay the maturing reverse repurchase agreement. 8.14.4 Proceeds of reverse repurchase agreements shall be used
solely to supplement portfolio income or to provide portfolio liquidity, and shall not be used to speculate on market movements. 8.14.5 All reverse repurchase agreements must be the subject of a Master Repurchase Agreement between OCSD and the provider of the
reverse repurchase agreement. The Master Repurchase Agreement shall be substantially in the form developed by The Bond Market Association. 8.15 Sales of OCSD-owned securities in the secondary market may incur losses in order to improve the risk or return characteristics of the portfolio,
to prevent anticipated further erosion of principal, or when trading for securities that result in an expected net economic gain to OCSD. 8.16 If securities owned by the OCSD are downgraded below the quality required by this Investment Policy, it shall be OCSD’s policy to review the
credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence in the portfolio will be monitored and reported monthly to the OCSD General Manager, the Administration Committee and Board of Directors.
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9.0 Review of Investment Portfolio: The securities held by OCSD must be in compliance with Section 8.0 “Authorized and Suitable Investments” at time of purchase. If at a later date, a security is no longer in
compliance with Section 8.0, the Treasurer shall report the non-compliant security to the
Administration Committee and Board of Directors and shall include a disclosure in the quarterly Treasurer’s Report if the security is held at the date the date the report is prepared.
10.0 Investment Pools/Mutual Funds:
A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. A questionnaire shall be developed that will provide the following information:
10.1 A description of eligible investment securities, and a written statement of investment policy and objectives. 10.2 A description of interest calculations and how they are distributed, and how gains and losses are treated.
10.3 A description of how the securities are safeguarded (including the settlement processes) and how often the securities are priced and the program audited.
10.4 A description of who may invest in the program, how often, and what size deposits and withdrawals are allowed. 10.5 A schedule for receiving statements and portfolio listings.
10.6 A description of the utilization and level of reserves, retained earnings or other collateral and how they are used by the fund. 10.7 A fee schedule, and when and how is it assessed.
10.8 Whether the pool/fund is eligible for bond proceeds and/or whether it will accept such proceeds. 11.0 Collateralization:
Generally, the value to secure deposits under this Policy shall comply with Section
53652 of the California Government Code. Collateralization will be required for secured time deposits, as more fully described in Section 8.9.1; and repurchase agreements, as more fully described in Section 8.13.1. Collateral will always be held by an independent third-party, as more fully described in Section 12.0. The right of collateral substitution is
granted.
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12.0 Safekeeping and Custody: All securities transactions, including collateral for repurchase agreements, entered into by, or on behalf of OCSD, shall be conducted on a delivery-versus-payment (DVP)
basis. Securities will be held by OCSD's third-party custodian bank, which shall be
selected through a competitive process, or that agent's representative, or in the agent's account at the Federal Reserve Bank, or within clearing corporations in the U.S., and evidenced by book entry statements.
13.0 Diversification: OCSD will diversify its investments by security type, issuer, and financial institution in accordance with the following:
13.1 There is no limit on investment in securities issued by or guaranteed by the full faith and credit of the U.S. government. 13.2 No more than 20% of the portfolio may be invested in securities of a single agency of the U.S. government, which does not provide the full faith and
credit of the U.S. government. 13.3 No more than 5% of the portfolio may be invested in securities of any one issuer, other than Supranationals, the U.S. government or its agencies. Investment in mutual funds is not governed by this Section 13.3. See
Section 13.8 for conditions of purchase of mutual funds. 13.4 No individual holding shall constitute more than 5% of the total debt outstanding of any issuer.
13.5 No more than 40% of the portfolio may be invested in banker’s acceptances. 13.6 No more than 25% of the portfolio may be invested in commercial paper.
13.7 No more than 30% of the portfolio may be invested in medium-term (corporate) notes. 13.8 No more than 20% of the portfolio may be invested in mutual funds. No more than 10% of the District’s portfolio may be invested in shares of
beneficial interest of any one (1) mutual fund. Money market mutual funds are limited to 20% per issuer and are not subject to the 10% stipulation. 13.9 No more than 30% of the portfolio may be invested in negotiable certificates of deposit.
13.10 No more than 10% of the portfolio may be invested in eligible municipal bonds.
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13.11 No more than 20% of the Long Term Operating Monies portfolio may be invested in a combination of mortgage-backed securities, CMOs and asset-backed securities.
13.12 No more than the lesser of 15% of the portfolio or the statutory maximum may be invested in LAIF. 13.13 No more than 15% of the portfolio may be invested in the Orange County Investment Pool.
13.14 No more than 20% of the portfolio may be invested in repurchase agreements. 13.15 No more than 5% of the portfolio may be invested in reverse repurchase
agreements. 14.0 Maximum Maturities: To the extent possible, OCSD will attempt to match its investments with reasonably
anticipated cash flow requirements. The Treasurer shall develop a five-year cash flow forecast, which shall be updated quarterly. Based on this forecast, the Treasurer shall designate, from time-to-time, the amounts to be allocated to the investment portfolio. OCSD monies invested in accordance with this Policy are divided into two (2) categories:
14.1 Liquid Operating Monies. Funds needed for current operating and capital expenditures are known as Liquid Operating Monies. 14.1.1 The maximum final stated maturity of individual securities in the
Liquid Operating Monies account portfolio shall be one (1) year from the date of settlement. 14.1.2 The average duration of the Liquid Operating Monies account portfolio shall be recommended by the Treasurer based on the Districts’
cash flow requirements, but may never exceed 180 days. 14.2 Long Term Operating Monies. Funds needed for longer term purposes are known as the Long Term Operating Monies.
14.2.1 The maximum final stated maturity of individual securities in the Long Term Operating Monies account portfolio shall be five (5) years from the date of settlement. 14.2.2 The duration of the Long Term Operating Monies account
portfolio shall be recommended by the Treasurer based on the District’s five-year cash flow forecast, but may never exceed 60 months.
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14.2.3 The duration of the Long Term Operating Monies account portfolio shall never exceed 120% of the duration as established in accordance with Section 14.2.2.
14.2.4 The duration of the Long Term Operating Monies account portfolio shall never be less than 80% of the duration as established in accordance with Section 14.2.2. 15.0 Internal Control:
The Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. The current treasury management procedures are presented in Appendix "B."
16.0 Performance Objectives and Benchmarks: 16.1 Overall objective. The investment portfolio of OCSD shall be designed with the overall objective of obtaining a rate of return throughout budgetary
and economic cycles, commensurate with investment risk constraints and
reasonably anticipated cash flow needs. 16.2 The Liquid Operating Monies. The investment performance objective for the Liquid Operating Monies shall be to earn a total rate of return over
a market cycle which exceeds the return on a market index approved by
the Administration Committee, and by the District's Board of Directors, when the duration of the portfolio is established. This market index is more fully described in Board Resolution No. OCSD18-XX (see Appendix "E").
16.3 The Long Term Operating Monies. The investment performance objective for the Long Term Operating Monies shall be to earn a total rate of return over a market cycle which exceeds the return on a market index selected by the Administration Committee and approved by the District’s
Board of Directors, when the duration of the portfolio is established. This
market index is more fully described in Board Resolution No. OCSD 18-XX (See Appendix "E"). 17.0 Reporting:
17.1 Monthly transaction reports in accordance with California Government Code Section 53607 shall be submitted by the Treasurer to the District’s Board of Directors.
17.2 Quarterly investment reports will be submitted by the Treasurer to the Administration Committee which shall forward the reports to the District's Board of Directors. The quarterly reports shall provide clear and concise status information on the District's portfolios at the end of each reporting period, including performance measures using the benchmarks described
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in Section 14.0 of this Investment Policy. Sample quarterly reports are presented in Appendix "F." These reports shall contain listings of individual securities held at the end of each reporting period, and shall disclose, at a minimum, the following information about the risk
characteristics of OCSD’s portfolio: 17.2.1 Cost and accurate and complete market value of the portfolio. 17.2.2 Modified duration of the portfolio compared to Benchmark.
17.2.3 Dollar change in value of the portfolio for a one-percent (1%) change in interest rates. 17.2.4 Percent of portfolio invested in reverse repurchase
agreements, and a schedule which matches the maturity of such reverse repurchase agreements with the cash flows which are available to repay them at maturity. 17.2.5 For the Liquid Operating Monies account only, the percent of
portfolio maturing within 90 days. 17.2.6 Average portfolio credit quality. 17.2.7 Percent of portfolio with credit ratings below "A" by any rating
agency, and a description of such securities. 17.2.8 State that all investments are in compliance with this policy and the California Government Code, or provide a listing of any transactions or holdings which do not comply with this policy or with the California
Government Code. 17.2.9 Time-weighted total rate of return for the portfolio for the prior three months, twelve months, year to date, and since inception compared to the Benchmark returns for the same periods.
17.2.10 State that sufficient funds are available for OCSD to meet its operating expenditure requirements for the next six months, or if not, state the reasons for the shortfall.
17.3 OCSD’s Treasurer shall meet quarterly with the Administration Committee to review investment performance, proposed strategies and compliance with this Investment Policy. External investment advisors may be required to attend said meetings at the discretion of the Chairman of the Administration Committee.
18.0 Investment Policy Adoption and Revision: 18.1 The Investment Policy of OCSD shall be reviewed by the Administration Committee and shall be adopted by resolution of the Board of Directors of
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OCSD. The Policy shall be reviewed on an annual basis in accordance with California Government Code Section 53646, and this Investment Policy, by the Administration Committee, which shall recommend revisions, as appropriate, to the Board of Directors. Any modifications
made thereto shall be approved by the Board of Directors. 18.2 The Administration Committee shall serve as the oversight committee for the District's Investment program and shall adopt guidelines for the ongoing review of duration, quality and liquidity of the District's portfolio.
ORANGE COUNTY SANITATION DISTRICT
INVESTMENT POLICY STATEMENT 1.0 Policy:
It is the policy of the Orange County Sanitation District (OCSD) to invest public funds in
a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating expenditure needs, achieving a reasonable rate of return and conforming to all state and local statutes governing the investment of public funds.
1.1. This Investment Policy is set forth by OCSD for the following purposes: 1.1.1. To establish a clear understanding for the Board of Directors, OCSD management, responsible employees and third parties of the
objectives, policies and guidelines for the investment of the OCSD’s idle and surplus funds. 1.1.2. To offer guidance to investment staff and any external
investment advisors on the investment of OCSD funds (see Appendix "A").
1.1.3. To establish a basis for evaluating investment results. 1.2. OCSD establishes investment policies which meet its current investment
goals. OCSD shall review this policy annually, and may change its
policies as its investment objectives change. 2.0 Scope:
This Investment Policy applies to all financial assets of OCSD; except for the proceeds
of OCSD's capital projects financing program, which are invested in accordance with provisions of their specific bond indentures; and such other funds excluded by law or other Board-approved covenant or agreement.
These funds are accounted for by OCSD as Enterprise Funds as represented in
OCSD's Comprehensive Annual Financial Report. 3.0 Standard of Prudence:
The standard of prudence to be used by OCSD internal staff, and any authorized
investment advisor(s), shall be as described in Section 53600.3 of the California Government Code as follows: Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this
chapter are trustees and therefore fiduciaries subject to the prudent investor standard.
When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a
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like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized
by law. 4.0 Investment Objectives: The primary objectives of OCSD’s investment activities, in priority order, and as
described in Section 53600.5 of the California Government Code, shall be:
4.1 Safety: The safety and preservation of principal is the foremost objective of the investment program of OCSD. Investments shall be selected in a manner that seeks to ensure the preservation of capital in OCSD's overall
portfolio. This will be accomplished through a program of diversification,
more fully described in Section 13.011.0, and maturity limitations, more fully described in Section 14.012.0, in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.
4.2 Liquidity: The investment program will be administered in a manner that will ensure that sufficient funds are available for OCSD to meet its reasonably anticipated operating expenditure needs.
4.3 Return on Investments: The OCSD investment portfolio will be structured and managed with the objective of achieving a rate of return throughout budgetary and economic cycles, commensurate with legal, safety, and liquidity considerations.
5.0 Delegation of Authority: 5.1 Authority to manage OCSD’s investment program is derived from the California Government Code Sections 53600 et seq. and Sections 53635 et seq. The Board of Directors hereby delegates management
responsibility for the OCSD investment program to its Assistant General Manager & Director of Finance and Administrative Services/Treasurer, who shall establish written procedures for the operation of the investment program, consistent with this Policy. The Controller/Assistant Treasurer shall be responsible for day-to-day administration, monitoring, and the
development of written administrative procedures for the operation of the investment program, consistent with this Policy. The current treasury management procedures are presented in Appendix "B." No person may engage in an investment transaction except as provided under the terms of this Policy and the procedures established by the Treasurer. The
Treasurer shall be responsible for all transactions undertaken by OCSD internal staff, and shall establish a system of controls to regulate the activities of internal staff and external investment advisors engaged in accordance with Section 5.3.
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5.2 The administrative procedures for the operation of OCSD's investment program will provide for, but not be limited to, the following:
5.2.1 Formats for monthly and quarterly reports to the Administration Committee, and the Board of Directors. 5.2.2 Compliance with generally accepted accounting principles of the Government Accounting Standards Board.
5.2.3 Establishment of benchmarks for performance measurement. 5.2.4 Establishment of a system of written internal controls.
5.2.5 Establishment of written procedures for competitive bids and offerings of securities that may be purchased or sold by internal OCSD staff. 5.2.6 Establishment of a Desk Procedures Manual for treasury
operations and management. 5.3 The Board of Directors of OCSD may, in its discretion, engage the services of one or more registered investment advisors to assist in the management of OCSD’s investment portfolio in a manner consistent with
OCSD’s objectives. Such external investment advisors, which shall be selected through a competitive process, shall be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such advisors must be registered under the Investment Advisers Act of 1940, or be exempt from such registration.
6.0 Ethics and Conflicts of Interest: 6.1 Officers and employees of OCSD involved in the investment process shall refrain from personal business activities that could conflict with proper execution of OCSD's
investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions that conduct business within OCSD's boundaries, and they shall further disclose any large personal financial/investment positions, the performance of which could be related to the
performance of positions in OCSD’s portfolio. 7.0 Authorized Financial Dealers and Institutions: 7.1 For investment transactions conducted by OCSD internal staff, the
Treasurer will maintain a list of financial institutions authorized to provide
investment services to OCSD, including "primary" or regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital rule), and Federal or State of California chartered banks. No public deposit shall be made except in a qualified public depository as
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established by State law. All financial institutions which desire to become qualified bidders for investment transactions with OCSD must supply the following for
evaluation by the Treasurer: 7.1.1. Audited financial statements for the institution’s three (3) most recent fiscal years.
7.1.2. A statement, in the format prescribed by the Government Finance Officers Association (GFOA), certifying that the institution has reviewed OCSD’s Investment Policy and that all securities offered to the Districts shall comply fully and in every instance with all provisions of the California Government Code and with this Investment Policy. The current
statement is presented in Appendix "C." 7.1.3. A statement describing the regulatory status of the dealer, and the background and expertise of the dealer's representatives.
Selection of financial institutions, broker/dealers, and banks authorized to engage in transactions with OCSD shall be made through a competitive process. An annual review of the financial condition of qualified institutions will be conducted by the Treasurer.
7.2 Selection of broker/dealers used by external investment advisors retained by OCSD, shall be in compliance with contract provisions between OCSD and any external investment advisors, and shall be in substantially the following form:
Use of Securities Brokers: Neither the Investment Advisor nor any parent, subsidiary or related firm shall act as a securities broker with respect to any purchases or sales of securities which may be made on behalf of OCSD, provided that this limitation shall not prevent the Investment Advisor from utilizing the services of a securities broker which is a parent,
subsidiary or related firm, provided such broker effects transactions on a "cost only" or "nonprofit" basis to itself and provides competitive execution. The Investment Advisor shall provide the Districts with a list of suitable independent brokerage firms (including names and addresses) meeting the requirements of Government Code Section 53601.5, and, unless
otherwise directed by OCSD, the Investment Advisor may utilize the service of any of such independent securities brokerage firms it deems appropriate to the extent that such firms are competitive with respect to price of services and execution
8.0 Authorized and Suitable Investments: All investments shall be made in accordance with the California Government Code
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including Sections 16429.1 et seq., 53600 et seq., and 53684, and as described within this Investment Policy. Permitted investments under this Policy shall include: 8.1 Securities, obligations, participations, or other instruments of, or
issued by, or fully guaranteed as to principal and interest by the US Government, a federal agency, or a US Government-sponsored enterprise pursuant to Section 53601 (f) of the California Government Code. US Treasury securities must make up at least 10% of the portfolio.
8.2 Supranational Obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank. Securities must be eligible for purchase in the United States and be US dollar denominated senior unsecured unsubordinated obligations, with a
maximum maturity of five years. Securities eligible for purchase under this section must be rated “AA” or better by a Nationally Recognized Statistical Rating Organization (NRSRO) and shall not exceed 30% of the total portfolio.
8.3 Mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer[TP1] receivable-backed bond of a maximum maturity of five years. Securities eligible for investment under this subdivision shall be
issued by an issuer having an “A” or higher rating for the issuer’s debt as provided by an NRSRO and rated in a rating category of “AA” or its equivalent or better by an NRSRO. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining
maturity of five years or less. Purchase of securities authorized by this subdivision may not exceed 20 percent of the agency’s surplus moneys that may be invested pursuant to this section. Purchase of mortgage derivatives, which include interest-only payments (IOs) and principal-only payments (POs); inverse floaters, and RE-REMICs (Real Estate Mortgage
Investment Conduits), is hereby prohibited. 8.4 Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided by an NRSRO, and issued by a domestic corporation organized and operating in the United States with
assets in excess of $500 million and having a rating of "A" or better on its long-term debt as provided by an NRSRO. Purchases of eligible commercial paper may not exceed 270 days to maturity from the date of purchase. Purchases of commercial paper shall not exceed 25% of the market value of the portfolio. No more than 5% of the market value of the
portfolio, or 10% of the issuer's outstanding paper, may be invested in commercial paper issued by any one (1) eligible corporation. 8.5 Banker’s acceptances issued by institutions, the short-term obligations of which are rated of the highest ranking or the highest letter and number
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rating as provided by an NRSRO provided that: (a) the acceptance is eligible for purchase by the Federal Reserve System; (b) the maturity does not exceed 180 days; (c) no more than 40% of the total portfolio may be invested in banker’s acceptances; and (d) no more than 5% of the total
portfolio may be invested in the banker's acceptances of any one (1) commercial bank. 8.6 Medium term (or corporate) notes of a maximum of five (5) years maturity issued by corporations organized and operating within the United
States, or issued by depository institutions licensed by the United States, or any state, and operating within the United States with assets in excess of $500 million, and which is rated in a rating category of “A” or better on its long-term debt as provided by an NRSRO. If, after purchase, the rating of an eligible note falls below the minimum rating category stipulated
above, the external investment advisor shall notify the District of the downgrade, and shall present an analysis and recommendations as to the disposition of the note consistent with the investment objectives of this Investment Policy. No more than 30% of the portfolio may be invested in medium term notes.
8.7 Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest in securities of the types listed by California Government Code Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least
equal to that required by California Government Code Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, and the security interest shall be
perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted. 8.8 Shares of mutual funds investing in securities permitted under this policy
and under Section 53601 (l) of the California Government Code. Such funds must either: (1) attain the highest ranking, or the highest letter and numerical rating, provided by not less than two of the three largest nationally recognized rating services; or (2) have an Investment Advisor registered with the Securities and Exchange Commission with not less
than five (5) years of experience investing in the securities and obligations authorized under this Policy and under California Government Code Section 53601, and with assets under management in excess of $500 million. The purchase price of shares of beneficial interest purchased pursuant to this policy, and the California Government Code may not
include any commission that the companies may charge, and shall not exceed 20% of the District’s surplus money that may be invested pursuant to this section. No more than 10% of the District’s surplus funds may be invested in shares of beneficial interest of any one (1) mutual fund
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pursuant to this section. Money market mutual funds are limited to 20% per issuer and are not subject to the 10% stipulation. 8.9 Certificates of deposit:
8.9.1 Secured (collateralized) time deposits issued by a nationally or state-chartered bank or state or federal savings and loan association, as defined by Section 5102 of the California Financial Code, and having a net operating profit in the two (2) most recently completed fiscal years.
Collateral must comply with Chapter 4, Bank Deposit Law, Section 16500
et seq., and Chapter 4.5, Savings and Loan Association and Credit Union Deposit Law, Section 16600 et seq., of the California Government Code. 8.9.2 Negotiable certificates of deposit (NCDs) issued by a nationally
or state-chartered bank or state of federal savings and loan association, as defined by Section 5102 of the California Financial Code; and which shall have a rating of "A" or better on its long-term debt as provided by a NRSRO; or which shall have the highest letter and number rating for deposits as provided by a NRSRO; or as otherwise approved by the
District's Board of Directors. No more than 30% of the portfolio may be
invested in securities pursuant to this section. 8.9.3 To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured individual loan
company shall have received an overall rating of not less than “satisfactory” in its most recent evaluation by the appropriate federal financial supervisorial agency of its record of meeting the credit needs of California’s communities, including low and moderate income neighborhoods, pursuant to Section 2906 of Title 12 of the United States
Code. 8.10 Taxable or tax-exempt municipal bonds issued by any of the 50 United States. Such securities must be rated “A” or higher by a NRSRO; or as otherwise approved by the Districts’ Board of Directors.
8.11 The State of California Local Agency Investment Fund (LAIF). The LAIF is an investment alternative for California's local governments and special districts managed by the State Treasurer's Office. LAIF is more fully described in the Glossary (See Appendix "H.") The District shall use
LAIF as a short-term cash management facility. Investment of District funds in LAIF shall be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review pursuant to Section 3.0, Standard of Prudence, of this Policy. See Appendix "D" for investment pool questionnaire.
8.12 The Orange County Treasurer's Money Market Commingled Investment Pool (OCCIP). The OCCIP is a money market investment pool managed by the Orange County Treasurer's Office. OCCIP is more fully described in the Glossary. (See Appendix "H.") The District has no
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funds invested in OCCIP at this time. Investment of District funds in OCCIP would be subject to investigation and due diligence prior to investing, and on a continual basis to a level of review pursuant to Section 3.0, Standard of Prudence, of this Policy.
8.13 Repurchase agreements provided that: 8.13.1 All repurchase agreements shall be collateralized with securities eligible for purchase under this Policy. In order to anticipate
market changes and to provide a level of security for all repurchase agreement transactions, collateralization shall be maintained at a level of at least 102% of the market value of the repurchase agreements, and shall be adjusted no less than weekly.
8.13.2 All repurchase agreements must be the subject of a Master Repurchase Agreement between OCSD and the provider of the repurchase agreement. The Master Repurchase Agreement shall be substantially in the form developed by The Bond Market Association.
8.14 Reverse repurchase agreements provided that: 8.14.1 No more than five percent (5%) of OCSD’s portfolio shall be invested in reverse repurchase agreements, and there shall be no long-term reverse repurchase agreements unless otherwise authorized by the
Districts’ Board of Directors. 8.14.2 The maximum maturity of reverse repurchase agreements shall be ninety (90) days.
8.14.3 Reverse repurchase agreements shall mature on the exact date of a known cash flow which will be unconditionally available to repay the maturing reverse repurchase agreement. 8.14.4 Proceeds of reverse repurchase agreements shall be used
solely to supplement portfolio income or to provide portfolio liquidity, and shall not be used to speculate on market movements. 8.14.5 All reverse repurchase agreements must be the subject of a Master Repurchase Agreement between OCSD and the provider of the
reverse repurchase agreement. The Master Repurchase Agreement shall be substantially in the form developed by The Bond Market Association. 8.15 Sales of OCSD-owned securities in the secondary market may incur losses in order to improve the risk or return characteristics of the portfolio,
to prevent anticipated further erosion of principal, or when trading for securities that result in an expected net economic gain to OCSD. 8.16 If securities owned by the OCSD are downgraded below the quality required by this Investment Policy, it shall be OCSD’s policy to review the
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credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence in the portfolio will be monitored and reported monthly to the OCSD General Manager, the
Administration Committee and Board of Directors.
9.0 Review of Investment Portfolio: The securities held by OCSD must be in compliance with Section 8.0 “Authorized and Suitable Investments” at time of purchase. If at a later date, a security is no longer in
compliance with Section 8.0, the Treasurer shall report the non-compliant security to the Administration Committee and Board of Directors and shall include a disclosure in the quarterly Treasurer’s Report if the security is held at the date the date the report is prepared.
10.0 Investment Pools/Mutual Funds:
A thorough investigation of the pool/fund is required prior to investing, and on a continual basis. A questionnaire shall be developed that will provide the following information:
10.1 A description of eligible investment securities, and a written statement of investment policy and objectives. 10.2 A description of interest calculations and how they are distributed, and how gains and losses are treated.
10.3 A description of how the securities are safeguarded (including the settlement processes) and how often the securities are priced and the program audited.
10.4 A description of who may invest in the program, how often, and what size deposits and withdrawals are allowed. 10.5 A schedule for receiving statements and portfolio listings.
10.6 A description of the utilization and level of reserves, retained earnings or other collateral and how they are used by the fund. 10.7 A fee schedule, and when and how is it assessed.
10.8 Whether the pool/fund is eligible for bond proceeds and/or whether it will accept such proceeds. 11.09.0 Collateralization:
Generally, the value to secure deposits under this Policy shall comply with Section
53652 of the California Government Code. Collateralization will be required for secured time deposits, as more fully described in Section 8.9.1; and repurchase agreements, as
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more fully described in Section 8.13.1. Collateral will always be held by an independent third-party, as more fully described in Section 12.010.1. The right of collateral substitution is granted.
12.0 10.0 Safekeeping and Custody: 10.1 All securities transactions, including collateral for repurchase agreements, entered into by, or on behalf of OCSD, shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by OCSD's third-party
custodian bank, which shall be selected through a competitive process, or that agent's
representative, or in the agent's account at the Federal Reserve Bank, or within
clearing corporations in the U.S., and evidenced by book entry statements. 13.011.0 Diversification:
OCSD will diversify its investments by security type, issuer, and financial institution in accordance with the following: 13.111.1 There is no limit on investment in securities issued by or
guaranteed by the full faith and credit of the U.S. government. 13.211.2 No more than 20% of the portfolio may be invested in securities of a single agency of the U.S. government, which does not provide the full faith and credit of the U.S. government.
13.311.3 No more than 5% of the portfolio may be invested in securities of any one issuer, other than Supranationals, the U.S. government or its agencies. Investment in mutual funds is not governed by this Section 13.311.3. See Section 13.811.8 for conditions of purchase of mutual
funds. 13.411.4 No individual holding shall constitute more than 5% of the total debt outstanding of any issuer.
13.511.5 No more than 40% of the portfolio may be invested in banker’s acceptances. 13.611.6 No more than 25% of the portfolio may be invested in commercial paper.
13.711.7 No more than 30% of the portfolio may be invested in medium-term (corporate) notes. 13.811.8 No more than 20% of the portfolio may be invested in mutual funds.
No more than 10% of the District’s portfolio may be invested in shares of
beneficial interest of any one (1) mutual fund. Money market mutual funds are limited to 20% per issuer and are not subject to the 10% stipulation.
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13.911.9 No more than 30% of the portfolio may be invested in negotiable certificates of deposit. 13.1011.10 No more than 10% of the portfolio may be invested in eligible municipal bonds.
13.1111.11 No more than 20% of the Long Term Operating Monies portfolio may be invested in a combination of mortgage-backed securities, CMOs and asset-backed securities.
13.1211.12 No more than the lesser of 15% of the portfolio or the statutory maximum may be invested in LAIF. 13.1311.13 No more than 15% of the portfolio may be invested in the Orange County Investment Pool.
13.1411.14 No more than 20% of the portfolio may be invested in repurchase agreements. 13.1511.15 No more than 5% of the portfolio may be invested in reverse
repurchase agreements. 14.012.0 Maximum Maturities: To the extent possible, OCSD will attempt to match its investments with reasonably
anticipated cash flow requirements. The Treasurer shall develop a five-year cash flow forecast, which shall be updated quarterly. Based on this forecast, the Treasurer shall designate, from time-to-time, the amounts to be allocated to the investment portfolio. OCSD monies invested in accordance with this Policy are divided into two (2) categories:
14.112.1 Liquid Operating Monies. Funds needed for current operating and capital expenditures are known as Liquid Operating Monies. 14.1.112.1.1 The maximum final stated maturity of individual securities in
the Liquid Operating Monies account portfolio shall be one (1) year from the date of settlement. 14.1.212.1.2 The average duration of the Liquid Operating Monies account portfolio shall be recommended by the Treasurer based on the
Districts’ cash flow requirements, but may never exceed 180 days. 14.212.2 Long Term Operating Monies. Funds needed for longer term purposes are known as the Long Term Operating Monies.
14.2.112.2.1 The maximum final stated maturity of individual securities in
the Long Term Operating Monies account portfolio shall be five (5) years from the date of settlement. 12.2.2
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14.2.2 The duration of the Long Term Operating Monies account portfolio shall be recommended by the Treasurer based on the District’s five-year cash flow forecast, but may never exceed 60 months.
14.2.312.2.3 The duration of the Long Term Operating Monies account portfolio shall never exceed 120% of the duration as established in accordance with Section 14.2.212.2.2. 12.2.3
12.2.4 14.2.4 The duration of the Long Term Operating Monies account portfolio shall never be less than 80% of the duration as established in accordance with Section 12.2.214.2.2.
15.013.0 Internal Control: 13.1 The Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. The current treasury management
procedures are presented in Appendix "B." 16.014.0 Performance Objectives and Benchmarks: 16.114.1 Overall objective. The investment portfolio of OCSD shall be
designed with the overall objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and reasonably anticipated cash flow needs. 16.214.2 The Liquid Operating Monies. The investment performance
objective for the Liquid Operating Monies shall be to earn a total rate of return over a market cycle which exceeds the return on a market index approved by the Administration Committee, and by the District's Board of Directors, when the duration of the portfolio is established. This market index is
14.3 more fully described in Board Resolution No. OCSD 17-17OCSD18-XX (see Appendix "E"). 16.3
The Long Term Operating Monies. The investment performance objective for the Long Term Operating Monies shall be to earn a total rate of return over a market cycle which exceeds the return on a market index selected by the Administration Committee and approved by the District’s Board of Directors, when the duration of the portfolio is established. This market
index is more fully described in Board Resolution No. OCSD 17-17 OCSD
18-XX (See Appendix "E"). 17.015.0 Reporting:
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17.115.1 Monthly transaction reports in accordance with California Government Code Section 53607 shall be submitted by the Treasurer to the District’s Board of Directors.
17.215.2 Quarterly investment reports will be submitted by the Treasurer to the Administration Committee which shall forward the reports to the District's Board of Directors. The quarterly reports shall provide clear and concise status information on the District's portfolios at the end of each reporting period, including performance measures using the benchmarks
described in Section 14.0 of this Investment Policy. Sample quarterly reports are presented in Appendix "F." These reports shall contain listings of individual securities held at the end of each reporting period, and shall disclose, at a minimum, the following information about the risk characteristics of OCSD’s portfolio:
17.2.115.2.1 Cost and accurate and complete market value of the portfolio. 17.2.215.2.2 Modified duration of the portfolio compared to Benchmark.
17.2.315.2.3 Dollar change in value of the portfolio for a one-percent (1%) change in interest rates. 17.2.415.2.4 Percent of portfolio invested in reverse repurchase
agreements, and a schedule which matches the maturity of such reverse repurchase agreements with the cash flows which are available to repay them at maturity. 17.2.515.2.5 For the Liquid Operating Monies account only, the percent of
portfolio maturing within 90 days. 17.2.615.2.6 Average portfolio credit quality. 17.2.715.2.7 Percent of portfolio with credit ratings below "A" by any
rating agency, and a description of such securities. 17.2.815.2.8 State that all investments are in compliance with this policy and the California Government Code, or provide a listing of any transactions or holdings which do not comply with this policy or with the
California Government Code. 17.2.915.2.9 Time-weighted total rate of return for the portfolio for the prior three months, twelve months, year to date, and since inception compared to the Benchmark returns for the same periods.
17.2.1015.2.10 State that sufficient funds are available for OCSD to meet its operating expenditure requirements for the next six months, or if not, state the reasons for the shortfall.
Page 13
17.3 15.2 OCSD’s Treasurer shall meet quarterly with the Administration Committee to review investment performance, proposed strategies and compliance
with this Investment Policy. External investment advisors may be
required to attend said meetings at the discretion of the Chairman of the Administration Committee. 18.016.0 Investment Policy Adoption and Revision:
18.116.1 The Investment Policy of OCSD shall be reviewed by the Administration Committee and shall be adopted by resolution of the Board of Directors of OCSD. The Policy shall be reviewed on an annual basis in accordance with California Government Code Section 53646, and this
Investment Policy, by the Administration Committee, which shall
recommend revisions, as appropriate, to the Board of Directors. Any modifications made thereto shall be approved by the Board of Directors. 18.216.2 The Administration Committee shall serve as the oversight
committee for the District's Investment program and shall adopt guidelines for the ongoing review of duration, quality and liquidity of the District's portfolio.
Page 1 of 2
EUEXHIBIT “B”
UCalendar Year 2019 Performance Monitoring & Reporting Schedule
For the Administration Committee
and Board of Directors meetings of:
The Quarterly Investment
Management Program Report to be presented for the period of:
0BJanuary 2019 (Board Only)
February 1BOct – Dec 2018
March April
May 2BJan – March 2019
June July
August (Board only) 3BApril – June 2019
September
October
November July – Sept 2019
December
Page 2 of 2
EXHIBIT "B" ORANGE COUNTY SANTIATION DISTRICT PERFORMANCE MONITORING & REPORTING SUMMARY FOR THE DISTRICT'S INVESTMENT PROGRAM
POLICY REFERENCE PERFORMANCE CHARACTERISTIC REPORTING PARTY*
Chandler U.S. Bank Callan
17.2.1 Cost and market value of the portfolio (monthly mark-to-market). M, Q M, Q Q
17.2.2 Modified duration of the portfolio compared to benchmark. M, Q Q
17.2.3 Dollar change in value of the portfolio for a 1% change in interest rate. M, Q Q
17.2.4 Percent of portfolio invested in reverse repurchase agreements, and a schedule which matches the maturity of such reverse repurchase agreements with the cash flows which
are available to repay them at maturity.
M, Q
17.2.5 For the Liquid Operating Monies account only, the percent of portfolio maturing within 90 days.
M, Q Q
17.2.6 Average portfolio credit quality. M, Q Q
17.2.7 Percent of portfolio with credit ratings below "A" by any rating agency, and a description of such securities.
M, Q Q
17.2.8 Listing of any transaction or holdings which do not comply with this policy or with the California Government Code.
M, Q
17.2.9 Time-weighted total rate of return for the portfolio for the prior three months, twelve months, year-to-date, and since inception compared to the benchmark returns for the same periods.
M, Q Q
ADDL** Comparison of portfolio performance to market index benchmark. M, Q Q
ADDL** Comparison of Manager's performance to peer group benchmark. Q
ADDL** Monitoring of organizational and structural changes of investment management firm. Q
ADDL** Audit portfolios for compliance with investment policy guidelines. Q
17.2.10 OCSD will report if sufficient funds are available for it to meet operating expenditure requirements for the next six months, or if not, state the reason for the shortfall. UNotes *M = Monthly *Q = Quarterly **ADDL = Monitoring of Additional Performance Characteristics
OCSD 18-XX-1
RESOLUTION NO. OCSD 18-XX
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT, AUTHORIZING THE DISTRICT'S TREASURER TO INVEST AND/OR REINVEST DISTRICT'S FUNDS,
ADOPTING DISTRICT'S INVESTMENT POLICY STATEMENT AND
PERFORMANCE BENCHMARKS, AND REPEALING RESOLUTION NO. OCSD 17-17
WHEREAS, on December 20, 2017, the Board of Directors adopted Resolution
No. 17-17, readopting the District's Investment Policy Statement, and establishing
specific performance benchmarks and objectives, together with a schedule of frequency
of investment performance reports; and
WHEREAS, pursuant to California Government Code Section 53607, the Board of
Directors may delegate authority to invest and/or reinvest District's funds to the Treasurer
for a one-year period; and
WHEREAS, pursuant to California Government Code Section 53646, the District
is required to review its Investment Policy annually and readopt its Policy at a public
meeting, which Policy will establish specific performance benchmarks and objectives, and
specific monitoring and reports.
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1: That the authority of the Board of Directors to invest or reinvest
District's surplus funds, or to sell or exchange securities so purchased, or to deposit for
safekeeping the funds and investments of the Districts with depositories, as provided for
in California Government Code Sections 53608 and 53630, is hereby delegated to the
District's Treasurer for a one-year period, January 1, 2019 through December 31, 2019,
as authorized by California Government Code Section 53607.
OCSD 18-XX-2
Section 2: That the Board of Directors hereby adopts the Investment Policy
Statement of the Orange County Sanitation District, as set forth in Exhibit “A”, attached
hereto and incorporated herein by reference.
Section 3: That the Board of Directors hereby adopts the following specific
performance benchmarks for their two investment funds in accordance with Section 14.0
of the District's Investment Policy:
LIQUID OPERATING MONIES: The Short-Term Operating Fund will be compared
to the three-month T-Bill rate, and the Callan Active Cash Flow Income Style
Group. The Callan Active Cash Flow Income Style Group represents a peer group
of managers who operate with a maximum maturity of one year.
LONG-TERM OPERATING MONIES: The Long-Term Operating Fund will be
compared to the Merrill Lynch Government and Corporate One-to-Five Year
Maturity Index and to the Callan Defensive Fixed Income Style Group.
Section 4: That the Board of Directors hereby adopts a performance monitoring
and reporting schedule, as required by Section 15.0 of the District's Investment Policy,
which schedule is attached hereto as Exhibit “B”, and incorporated herein by reference.
Section 5: That Resolution No. OCSD 17-17 is hereby repealed.
OCSD 18-XX-3
PASSED AND ADOPTED at regular meeting of the Board of Directors, Orange
County Sanitation District held December 19, 2018.
David John Shawver
Board Chairman
ATTEST:
Kelly A. Lore, MMC Clerk of the Board
OCSD 18-XX-4
STATE OF CALIFORNIA )
) ss
COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation
District, do hereby certify that the foregoing Resolution No. OCSD 18-XX was passed and adopted at a regular meeting of said Board on the 19th day of December 2018, by the following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official
seal of Orange County Sanitation District this 19th day of December 2018.
Kelly A. Lore, MMC
Clerk of the Board of Directors
Orange County Sanitation District
Appendix “B” Revised: November 26, 2018 Orange County Sanitation District
Treasury Management Procedures 1.0 Purpose 1.1 The purpose of this policy is to establish uniform guidelines and procedures for use in the administration of the District’s Treasury functions consistent with the California Government Code and the District’s adopted Investment
Policy Statement. 2.0 Authority to Investment and/or Reinvestment of District Funds: 2.1 Is delegated annually to the Director of Finance/Treasurer in accordance
with California Government Code Section 53607. 3.0 Formal Investment Policy Statement: 3.1 Is prepared by the Treasurer.
3.2 Is reviewed by the District’s Administration Committee (ADM), in its role as the finance oversight committee. 3.3 Is submitted to and adopted by the District’s Board of Directors annually at
a public meeting in accordance with California Government Code Section 53646. 4.0 Delegation of some or all of the investment portfolio management to one or more registered investment advisors (external money managers):
4.1 Is authorized by the District’s Investment Policy; 4.2 Applies to the District’s entire investment portfolio except for:
4.2.1 A maximum of $65 million that is maintained within the State Local Agency Investment Fund (LAIF) for managing cash flows (i.e., deposits of large revenues, such as property tax and user fee proceeds, and the bi-weekly disbursements of payroll and accounts payable);
4.2.2 A peg amount of approximately $50,000 is maintained within the District’s checking account at Banc of California to serve as compensating balances to offset banking charges (note: the District’s Board of Directors has selected Banc of California to serve as the
District’s commercial bank (the “Bank”); and 4.2.3 Based on a determination by the District’s Treasurer on what is most
Orange County Sanitation District Treasury Management Procedures Revised: November 26, 2018 Page 2 of 7
advantageous to the District, the checking account residual amounts may be invested as follows: 4.2.3.1 Bank balances exceeding the peg balance (as a result of
outstanding accounts payable and payroll warrants) may
be invested overnight under a repurchase agreement with the Bank; or 4.2.3.2 The District may elect to receive earnings credit against
bank charges on all bank balances including the peg
amount equal to the 91 Day T-Bill Average. 5.0 Investment transactions involving the LAIF are approved by the Treasurer prior to their execution by the Controller. The approval function indicates that the
transactions are in accordance with the District’s Investment Policy. The
Accounting Supervisor will serve as backup for the approval function upon the absence of any either of these two employees. 5.1 Specific Procedures involving LAIF include (note: all deposits and
withdrawals of funds to/from LAIF may only be processed through the
District's checking account with the Bank): 5.1.1 A "State Treasurer's Local Agency Investment Fund Authorization Form" (see Attachment “A”) must be completed prior to the execution
of the transaction indicating:
5.1.1.1 The effective date of the transaction; 5.1.1.2 The dollar amount to be withdrawn from or deposited into
LAIF;
5.1.1.3 The date and signature approval by the Controller authorizing the transaction; and
5.1.1.4 The date and signature approval of the Treasurer
approving the transaction. 5.1.2 The execution of the transaction will be done in accordance with the "State Treasurer’s Local Agency Investment Fund Wire Transfer
Instructions" (see Attachment “B”). Key internal control features
include: 5.1.2.1 The requirement of the District’s Personnel Identification Number (PIN) for either deposits or withdrawals, known
only by the Treasurer and Controller.
5.1.2.2 Secondary confirmation requirement by the Bank for the withdrawals/deposits from/to the Bank or LAIF. The
Orange County Sanitation District Treasury Management Procedures Revised: November 26, 2018 Page 3 of 7
confirmation can be made by the Controller or Treasurer (the person that didn't make the original request), the Accounting Supervisor, or the Principal Accountant.
5.1.3 Each transaction is confirmed the next day by the Bank’s Previous
Day Reporting modem service by the Senior Accountant and Controller. 6.0 Investment transactions involving the District’s external investment program and
performed by the independent investment firms are as follows:
6.1 The District’s Board of Directors has selected Chandler Asset Management (Chandler) to manage two portfolios: the Districts' Liquid Operating Monies Fund and the Long-term Operating Monies Fund.
6.1.1 Chandler has authorization to purchase and sell investment securities in accordance with the strict investment guidelines set forth in the District’s Investment Policy (Section 8.0).
6.1.2 Hard copy confirmation reporting to the District is required on all
transactions. 6.2 The District’s Board of Directors has selected U.S. Bank (the “Custodian”) to serve as the District’s master custodian and safekeeping bank. In their
capacity as Custodian, U.S. Bank shall perform the following duties to settle
purchases and sales and engage in other transactions in the administration of the District’s accounts: 6.2.1 Upon execution of any transaction by Chandler, all investment
securities are recorded in book entry by the Custodian through either
the Depository Trust Company or the Federal Reserve Bank; 6.2.2 Hold the property in safekeeping facilities of the Custodian or of other custodian banks or clearing corporations in the U.S.;
6.2.3 Collect all income payable to and all distributions due to the District’s account and sign on the District's behalf all declarations, affidavits, and certificates of ownership required to collect income and principal payments;
6.2.4 Collect all proceeds from securities, certificates of deposit or other investments which may mature or be called; 6.2.5 Submit or cause to be submitted to the District or the external money
manager, as designated by the District, on a best effort basis all
information received by the Custodian regarding the ownership rights pertaining to property held in the account;
Orange County Sanitation District Treasury Management Procedures Revised: November 26, 2018 Page 4 of 7
6.2.6 Attend to involuntary corporation actions; 6.2.7 Determine the fair market value of the District’s account on a monthly basis as of such dates as the Districts and the Custodian may agree
upon, in accordance with methods consistently followed and
uniformly applied; 6.2.8 Render to District, with copies to the external money manager, monthly statements for securities held hereunder; and
6.2.9 Provide the District with copies of the Custodian's financial statements filed with the State of California, or any agency thereof, within thirty (30) days after such filing.
6.3 The District’s Board of Directors has selected Callan Associates as the
District’s Independent Investment Advisor (the “Advisor”). In their capacity as Advisor, Callan shall perform the following duties on behalf of the District: 6.3.1 Monitor and report on Chandler's compliance with the investment
requirements of the Districts' Investment Policy, using data from
transaction reports prepared by U.S. Bank, on a quarterly basis; 6.3.2 Review Chandler's investment strategy quarterly;
6.3.3 Monitor and report on the performance of Chandler against the
performance benchmark standards established in the District’s Investment Policy for both the Liquid Operating Monies Fund and the Long-term Operating Monies Fund on a quarterly basis; and
6.3.4 Review both Liquid and Long-term Operating Funds by asset
allocation, asset flow, quarterly factors and cumulative results on a quarterly basis. 6.4 Specific procedures in depositing to or withdrawing funds from the
investment portfolio managed by the District’s external money manager
include: (note: all deposits and withdrawals of funds from the District’s investment portfolio managed by Chandler and U.S. Bank may only be processed through the District’s checking account at the Bank):
6.4.1 A "Wire Transfer Form" (see Attachment” C”) must be completed by
the Controller prior to the execution of the transaction indicating: 6.4.1.1 The dollar amount to be withdrawn/deposited from/to the Bank checking account to/from the Chandler Liquid
Operating or Chandler Long-term Operating Monies
Funds; 6.4.1.2 The effective date of the transaction;
Orange County Sanitation District Treasury Management Procedures Revised: November 26, 2018 Page 5 of 7
6.4.1.3 The date and signature or electronic review by the Controller; and 6.4.1.4 The date and signature or electronic approval of the
Treasurer approving the transaction.
6.4.2 The execution of the transaction requires a verbal confirmation call from the Custodian to the Controller at the time of the transaction, and a written confirmation the following day.
6.4.3 Each transaction is confirmed the next day by the Bank’s Previous Day Reporting modem service by the Senior Accountant and Controller.
7.0 Recording of investment transactions:
7.1 For investment transactions conducted by District staff with the LAIF, and with the transfer/withdrawal of funds with the Custodian:
7.1.1 Is done by the Controller who maintains a file of all investment
transactions. 7.1.2 Is done within the accounting records by the Senior Accountant, who receives a signed copy of all investment transactions from the
Controller.
7.2 For investment transactions conducted by the external money manager: 7.2.1 Is done by the Custodian who posts all investment transactions daily
within their record keeping system and provides the District with a
monthly report that provides both a summary and detail listing of all investment transactions. 7.2.2 Is done on a monthly basis by the Senior Accountant within the
accounting records at a summary level using Monthly Transaction
Reports prepared by the Custodian. 8.0 Verification of external money manager transactions is performed by:
8.1 The Custodian within their record keeping system (i.e., matching broker
confirmations to custodian records), and is reported to the District and Chandler on a monthly basis. 8.2 Chandler through their internal compliance office and reported monthly to
the District as required by the District’s Investment Policy.
Orange County Sanitation District Treasury Management Procedures Revised: November 26, 2018 Page 6 of 7
8.3 The Senior Accountant through reconciliation of Chandler's monthly investment transaction report against the monthly transaction report provided by the Custodian.
9.0 Safeguarding of Assets and Records:
9.1 Reconciliation of investment records to the accounting records is done by the Senior Accountant (or in their absence, the Principal Accountant) on a monthly basis.
9.2 Reconciliation of investment records to bank statements is performed by the Senior Accountant (or in their absence, the Principal Accountant) within one week following the receipt of the bank statement.
9.3 Review of financial condition, safety, liquidity, and potential yields of
investment instruments and reputation and financial condition of investment brokers is done by the District’s external money manager, who is authorized to utilize the services of independent securities brokerage firms as deemed appropriate, and which meets the requirements of Government Code
Section 53601.5.
10.0 The periodic review of the investment portfolio, including investment types, purchase price, market values, maturity dates, and investment yields as well as conformance to the stated Investment Policy will be performed monthly by the
Controller, quarterly by the Advisor, and annually by the District’s external
independent auditors. 11.0 The District’s Administration Committee will serve as the Oversight Investment Advisory Committee to assist the Board of Directors in monitoring treasury
management activities.
11.1 The District’s Treasurer submits a Quarterly Investment Program Performance Report which includes, but is not limited to, the following information:
11.1.1 Quarterly interest earnings and rates of return; 11.1.2 The market value of the portfolios;
11.1.3 The annualized earnings of the portfolios;
11.1.4 Market recap; 11.1.5 Comparisons with pre-determined benchmarks;
11.1.6 Market forecast; and 11.1.7 Proposed investment strategy for the upcoming quarter.
Orange County Sanitation District Treasury Management Procedures Revised: November 26, 2018 Page 7 of 7
Internal Control Strengths 1. The specific responsibility for the performance of duties is assigned and lines of
authority and reporting are clearly identified.
2. Responsibilities are commensurate with the capabilities of the personnel assigned. 3. Incompatible functions have been properly segregated to prevent errors or fraud.
4. All transactions are authorized by an appropriate responsible individual. 5. Safeguards over assets and records are in place to ensure that recorded assets exist and are properly recorded.
6. Management controls are in place to ensure that significant transactions are properly performed and recorded.
H:\DEPT\ASD\220\COMMON\INVESTMENT POLICY\2018 DECEMBER
Appendix “B” Revised: January 1, 2018November 26, 2018 Orange County Sanitation District
Treasury Management Procedures 1.0 Purpose 1.1 The purpose of this policy is to establish uniform guidelines and procedures for use in the administration of the District’s Treasury functions consistent with the California Government Code and the District’s adopted Investment
Policy Statement. 2.0 Authority to Investment and/or Reinvestment of District Funds: 2.1 Is delegated annually to the Director of Finance/Treasurer in accordance
with California Government Code Section 53607. 3.0 Formal Investment Policy Statement: 3.1 Is prepared by the Treasurer.
3.2 Is reviewed by the District’s Administration Committee (ADM), in its role as the finance oversight committee. 3.3 Is submitted to and adopted by the District’s Board of Directors annually at
a public meeting in accordance with California Government Code Section 53646. 4.0 Delegation of some or all of the investment portfolio management to one or more registered investment advisors (external money managers):
4.1 Is authorized by the District’s Investment Policy; 4.2 Applies to the District’s entire investment portfolio except for:
4.2.1 A maximum of $65 million that is maintained within the State Local Agency Investment Fund (LAIF) for managing cash flows (i.e., deposits of large revenues, such as property tax and user fee proceeds, and the bi-weekly disbursements of payroll and accounts payable);
4.2.2 A peg amount of approximately $50,000 is maintained within the District’s checking account at Banc of CaliforniaUnion Bank to serve as compensating balances to offset banking charges (note: the District’s Board of Directors has selected Banc of CaliforniaUnion
Bank to serve as the District’s commercial bank (the “Bank”); and 4.2.3 Based on a determination by the District’s Treasurer on what is most advantageous to the District, the checking account residual amounts may be invested as follows:
Orange County Sanitation District Treasury Management Procedures Revised: January 1, 2018November 26, 2018 Page 2 of 7
4.2.3.1 Bank balances exceeding the peg balance (as a result of outstanding accounts payable and payroll warrants) may be invested overnight under a repurchase agreement with
the Bank; or
4.2.3.2 The District may elect to receive earnings credit against bank charges on all bank balances including the peg amount equal to the 91 Day T-Bill Average.
5.0 Investment transactions involving the LAIF are approved by the Treasurer prior to their execution by the Controller. The approval function indicates that the transactions are in accordance with the District’s Investment Policy. The Accounting Supervisor will serve as backup for the approval function upon the
absence of any either of these two employees.
5.1 Specific Procedures involving LAIF include (note: all deposits and withdrawals of funds to/from LAIF may only be processed through the District's checking account with the Bank):
5.1.1 A "State Treasurer's Local Agency Investment Fund Authorization Form" (see Attachment “A”) must be completed prior to the execution of the transaction indicating:
5.1.1.1 The effective date of the transaction;
5.1.1.2 The dollar amount to be withdrawn from or deposited into LAIF;
5.1.1.3 The date and signature approval by the Controller
authorizing the transaction; and 5.1.1.4 The date and signature approval of the Treasurer approving the transaction.
5.1.2 The execution of the transaction will be done in accordance with the "State Treasurer’s Local Agency Investment Fund Wire Transfer Instructions" (see Attachment “B”). Key internal control features include:
5.1.2.1 The requirement of the District’s Personnel Identification Number (PIN) for either deposits or withdrawals, known only by the Treasurer and Controller.
5.1.2.2 Secondary confirmation requirement by the Bank for the
withdrawals/deposits from/to the Bank or LAIF. The confirmation can be made by the Controller or Treasurer (the person that didn't make the original request), the Accounting Supervisor, or the Principal Accountant.
Orange County Sanitation District Treasury Management Procedures Revised: January 1, 2018November 26, 2018 Page 3 of 7
5.1.2.2 5.1.3 Each transaction is confirmed the next day by the Bank’s Previous Day Reporting modem service by the Senior Accountant and
Controller.
6.0 Investment transactions involving the District’s external investment program and performed by the independent investment firms are as follows:
6.1 The District’s Board of Directors has selected Chandler Asset Management
(Chandler) to manage two portfolios: the Districts' Liquid Operating Monies Fund, and the Long-term Operating Monies Fund. 6.1.1 Chandler has authorization to purchase and sell investment
securities in accordance with the strict investment guidelines set
forth in the District’s Investment Policy (Section 8.0). 6.1.2 Hard copy confirmation reporting to the District is required on all transactions.
6.2 The District’s Board of Directors has selected U.S. Bank (the “Custodian”) to serve as the District’s master custodian and safekeeping bank. In their capacity as Custodian, U.S. Bank shall perform the following duties to settle purchases and sales and engage in other transactions in the administration
of the District’s accounts:
6.2.1 Upon execution of any transaction by Chandler, all investment securities are recorded in book entry by the Custodian through either the Depository Trust Company or the Federal Reserve Bank;
6.2.2 Hold the property in safekeeping facilities of the Custodian or of other custodian banks or clearing corporations in the U.S.; 6.2.3 Collect all income payable to and all distributions due to the District’s
account and sign on the District's behalf all declarations, affidavits,
and certificates of ownership required to collect income and principal payments; 6.2.4 Collect all proceeds from securities, certificates of deposit or other
investments which may mature or be called;
6.2.5 Submit or cause to be submitted to the District or the external money manager, as designated by the District, on a best effort basis all information received by the Custodian regarding the ownership rights
pertaining to property held in the account;
6.2.6 Attend to involuntary corporation actions; 6.2.7 Determine the fair market value of the District’s account on a monthly
Orange County Sanitation District Treasury Management Procedures Revised: January 1, 2018November 26, 2018 Page 4 of 7
basis as of such dates as the Districts and the Custodian may agree upon, in accordance with methods consistently followed and uniformly applied;
6.2.8 Render to District, with copies to the external money manager,
monthly statements for securities held hereunder; and 6.2.9 Provide the District with copies of the Custodian's financial statements filed with the State of California, or any agency thereof,
within thirty (30) days after such filing.
6.3 The District’s Board of Directors has selected Callan Associates as the District’s Independent Investment Advisor (the “Advisor”). In their capacity as Advisor, Callan shall perform the following duties on behalf of the District:
6.3.1 Monitor and report on Chandler's compliance with the investment requirements of the Districts' Investment Policy, using data from transaction reports prepared by U.S. Bank, on a quarterly basis;
6.3.2 Review Chandler's investment strategy quarterly;
6.3.3 Monitor and report on the performance of Chandler against the performance benchmark standards established in the District’s Investment Policy for both the Liquid Operating Monies Fund and the
Long-term Operating Monies Fund on a quarterly basis; and
6.3.4 Review both Liquid and Long-term Operating Funds by asset allocation, asset flow, quarterly factors and cumulative results on a quarterly basis.
6.4 Specific procedures in depositing to or withdrawing funds from the investment portfolio managed by the District’s external money manager include: (note: all deposits and withdrawals of funds from the District’s investment portfolio managed by Chandler and U.S. Bank may only be
processed through the District’s checking account at the Bank):
6.4.1 A "Wire Transfer Form" (see Attachment” C”) must be completed by the Controller prior to the execution of the transaction indicating:
6.4.1.1 The dollar amount to be withdrawn/deposited from/to the
Bank checking account to/from the Chandler Liquid Operating or Chandler Long-term Operating Monies Funds;
6.4.1.2 The effective date of the transaction;
6.4.1.3 The date and signature or electronic review by the Controller; and
Orange County Sanitation District Treasury Management Procedures Revised: January 1, 2018November 26, 2018 Page 5 of 7
6.4.1.4 The date and signature or electronic approval of the Treasurer approving the transaction. 6.4.2 The execution of the transaction requires a verbal confirmation call
from the Custodian to the Controller at the time of the transaction,
and a written confirmation the following day. 6.4.3 Each transaction is confirmed the next day by the Bank’s Previous Day Reporting modem service by the Senior Accountant and
Controller.
7.0 Recording of investment transactions: 7.1 For investment transactions conducted by District staff with the LAIF, and
with the transfer/withdrawal of funds with the Custodian:
7.1.1 Is done by the Controller who maintains a file of all investment transactions.
7.1.2 Is done within the accounting records by the Senior Accountant, who
receives a signed copy of all investment transactions from the Controller. 7.2 For investment transactions conducted by the external money manager:
7.2.1 Is done by the Custodian who posts all investment transactions daily within their record keeping system and provides the District with a monthly report that provides both a summary and detail listing of all investment transactions.
7.2.2 Is done on a monthly basis by the Senior Accountant within the accounting records at a summary level using Monthly Transaction Reports prepared by the Custodian.
8.0 Verification of external money manager transactions is performed by:
8.1 The Custodian within their record keeping system (i.e., matching broker confirmations to custodian records), and is reported to the District and Chandler on a monthly basis.
8.2 Chandler through their internal compliance office and reported monthly to the District as required by the District’s Investment Policy. 8.3 The Senior Accountant through reconciliation of Chandler's monthly
investment transaction report against the monthly transaction report
provided by the Custodian. 9.0 Safeguarding of Assets and Records:
Orange County Sanitation District Treasury Management Procedures Revised: January 1, 2018November 26, 2018 Page 6 of 7
9.1 Reconciliation of investment records to the accounting records is done by the Senior Accountant (, or in their absence, the Principal Accountant) on a monthly basis.
9.2 Reconciliation of investment records to bank statements is performed by
the Senior Accountant (or in their absence, the Principal Accountant) within one week following the receipt of the bank statement. 9.3 Review of financial condition, safety, liquidity, and potential yields of
investment instruments and reputation and financial condition of investment
brokers is done by the District’s external money manager, who is authorized to utilize the services of independent securities brokerage firms as deemed appropriate, and which meets the requirements of Government Code Section 53601.5.
10.0 The periodic review of the investment portfolio, including investment types, purchase price, market values, maturity dates, and investment yields as well as conformance to the stated Investment Policy will be performed monthly by the Controller, quarterly by the Advisor, and annually by the District’s external
independent auditors.
11.0 The District’s Administration Committee will serve as the Oversight Investment Advisory Committee to assist the Board of Directors in monitoring treasury management activities.
11.1 The District’s Treasurer submits a Quarterly Investment Program Performance Report which includes, but is not limited to, the following information:
11.1.1 Quarterly interest earnings and rates of return;
11.1.2 The market value of the portfolios; 11.1.3 The annualized earnings of the portfolios;
11.1.4 Market recap; 11.1.5 Comparisons with pre-determined benchmarks;
11.1.6 Market forecast; and
11.1.7 Proposed investment strategy for the upcoming quarter. Internal Control Strengths
1. The specific responsibility for the performance of duties is assigned and lines of authority and reporting are clearly identified. 2. Responsibilities are commensurate with the capabilities of the personnel assigned.
Orange County Sanitation District Treasury Management Procedures Revised: January 1, 2018November 26, 2018 Page 7 of 7
3. Incompatible functions have been properly segregated to prevent errors or fraud. 4. All transactions are authorized by an appropriate responsible individual.
5. Safeguards over assets and records are in place to ensure that recorded assets exist and are properly recorded. 6. Management controls are in place to ensure that significant transactions are
properly performed and recorded.
H:\DEPT\ASD\220\COMMON\INVESTMENT POLICY\2018 DECEMBER
Page 1 of 2 1367293.1
ADMINISTRATION COMMITTEE Meeting Date 12/12/18 To Bd. of Dir. --
AGENDA REPORT Item Number 4 Item Number --
Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Celia Chandler, Director of Human Resources SUBJECT: POLICY EXCEPTION REGARDING EMPLOYMENT OF AN EMPLOYEE
FOLLOWING RETIREMENT GENERAL MANAGER'S RECOMMENDATION Approve an exception to the Orange County Sanitation District (Sanitation District) Board
of Directors Personnel Policy 1.4 on Recruitment and Selection (Policy). Specifically, staff requests a one-time exception to the Policy provision that ordinarily prohibits a former employee from doing business or providing services to the Sanitation District directly, through his/her own business, or indirectly through a contractor, for a period of one (1) year post-employment.
BACKGROUND The Sanitation District Board of Directors Personnel Policies and Procedures Manual contains the terms, conditions, rules, and regulations of employment. The Recruitment
and Selection Policy includes a provision that prohibits former employees from doing business with the Sanitation District as an independent contractor or consultant for a period of one (1) year post-employment, wherein the employee, his/her spouse, or members of his/her immediate family are sole proprietors, or majority or controlling shareholders or owners of a corporation, partnership, or other business entity.
Furthermore, an entity may contract with the Sanitation District if the former employee is not a majority owner or does not have controlling interest in said entity. However, under the Recruitment and Selection Policy, the former employee shall not perform work on projects for the Sanitation District for a period of one (1) year post-employment; nor shall such former employee contact Sanitation District officers or employees for the purpose of
attempting to influence any decision including, but not limited to, the award of contract, issuance of permits, or compromise of administrative civil penalties, for a like period of one (1) year. The Policy also includes a provision that allows the Administration Committee
(Committee) to waive said prohibition on a case-by-case basis, if it is determined to be in the best interest of the Sanitation District to do so. The awarding of contracts and/or services would continue to be subject to the Sanitation District’s procurement rules and procedures.
Staff is requesting for this prohibition to be waived by the Committee with regard to an Engineering Manager who will be retiring in 2019, and has been employed by the Sanitation District for over 28 years. There is a potential for the Sanitation District to
Page 2 of 2 1367293.1
utilize his services directly or indirectly immediately post-employment, and it is in the best interest of the Sanitation District to take advantage of his valuable institutional knowledge.
RELEVANT STANDARDS
• Comply with OCSD Policy 1.4 Recruitment and Selection
PROBLEM The Sanitation District anticipates a need to continue utilizing the skills and to minimize the loss in knowledge of an Engineering Manager shortly after his planned retirement in early 2019. In accordance with Policy, former employees are prohibited from doing
business for the Sanitation District or providing services directly or indirectly for a period
of one (1) year post-employment. PROPOSED SOLUTION
Approve a one-time exception to the Recruitment and Selection Policy to allow the
Sanitation District to continue immediately utilizing the skills of an Engineering Manager post-employment, and minimize the loss in institutional knowledge. TIMING CONCERNS
Staff recommends approval of the one-time exception for continuity and to ensure a seamless transition following the retirement of an Engineering Manager, scheduled for early 2019. RAMIFICATIONS OF NOT TAKING ACTION Without approval, the Sanitation District may not have sufficient time for knowledge transfer or the ability to continue utilizing the knowledge and skills of the Engineering Manager post-employment.
ATTACHMENT
The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package:
• Policy 1.4 Recruitment and Selection
__________________________________________________________________________________________ Personnel Policies & Procedures Manual Page 1 of 10 Effective: 09/26/18 Policy 1.4 Recruitment and Selection
Orange County
Sanitation District
Personnel Policies
Policy Number: 1.4 Effective Date: September 26, 2018 Subject: Recruitment and Selection
Supersedes: November 14, 2011
Approved by: General Manager
1.0 PURPOSE
1.1 The purpose of this policy is to establish guidelines and procedures for Orange County Sanitation District (OCSD) recruitment activities.
2.0 ORGANIZATIONAL UNITS AFFECTED
2.1 This policy applies to all OCSD departments, divisions, and employees. 3.0 DEFINITIONS 3.1 Recruitment is the process of attracting qualified individuals to apply for employment opportunities that are advertised by the organization, whether internal, or external. 3.2 Internal recruitment means considering only current employees as applicants for job openings within the organization. 3.3 External recruitment means considering applicants from outside the organization in an open recruitment, as well as current employees for job openings within the organization. 3.4 Promotion is the advancement of an employee to another classification with a higher maximum rate of pay. 3.5 Lateral Transfer means the transfer of an employee from one department to a vacant position in another department in the same job classification, initiated by an employee request. 3.6 Reassignment means the transfer of an employee within a department or within the organization in the same job classification based on business need. 3.7 Voluntary Job Change is an employee-initiated transfer within the organization. 3.8 Assessment means an impartial method of systematically evaluating an applicant’s ability to perform the essential job functions of a position’s requirements. An assessment may consist of one (1) or any combination of the following: performance tests; written tests; appraisal interviews; scoring of the application, supplemental questions; work performance; or any other job-related selection criteria. Assessment tools are intended to measure knowledge, skills, abilities, and/or competencies necessary to perform the job. 3.9 Eligible list means an arrangement of applicants who have been identified as most qualified as a result of the recruitment and selection process.
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3.10 Initial Probationary Period, unless otherwise specified by an applicable bargaining unit Memorandum of Understanding (MOU), is defined as the period of service that extends to at least the first day of the pay period following twenty-six (26) weeks of employment with OCSD without a break in service, beginning with the date of hire. This period is regarded as an extension of the hiring process, and provides an opportunity for both the employee and OCSD management to assess, over a substantial period of time, whether
or not the hiring decision was appropriate. Employees who have not yet successfully completed their initial probationary period serve “at-will” and may be released from employment without cause or recourse to any appeal or grievance procedures.
3.11 Promotional Probationary Period is defined as the period of service that extends to at least the first day of the pay period following twenty-six (26) weeks of employment without a break in service, beginning with the effective date of promotion. If an employee is promoted during his/her initial probationary period, the period will be extended until at least the first day of the pay period twenty-six (26) weeks after the effective date of the promotion. This period is regarded as an extension of the selection process, and provides an opportunity for both the employee and OCSD management to assess, over a substantial period of time, whether or not the decision was appropriate. “At-will” employees do not serve a promotional probationary period. 3.12 Probationary Period – Reassignment, Lateral Transfer or Voluntary Job Change, unless otherwise specified by an applicable bargaining unit MOU, is defined as the period of service that extends to at least the first twenty-six (26) weeks of employment with OCSD without a break in service, beginning with the effective date of the reassignment or lateral transfer. This period provides an opportunity for both the employee and OCSD management to assess, over a substantial period of time, whether or not the decision was appropriate.
4.0 POLICY
4.1 OCSD is an Equal Opportunity Employer (EOE). OCSD does not discriminate on the basis of race, color, religion, sex (including pregnancy, childbirth, and breastfeeding), sexual orientation, age, national origin, ancestry, actual or perceived disability, medical condition, genetic information, military and veteran status, marital status, gender, gender identity, gender expression, exercise of rights relating to any legally-provided leave of absence, or any other legally protected basis. 4.2 It is OCSD’s policy to provide nondiscriminatory, lawful, and consistent guidelines and procedures to all recruitment processes, whether internal, or external.
5.0 PROCEDURE
5.1 TYPE OF RECRUITMENT
5.1.1 External Recruitment: Any person meeting the requirements of the open position listed on the announcement may apply. External recruitment announcements will be advertised on OCSD’s career website, and may be posted on industry-related websites. Announcements will specify a filing period of a minimum of (10) business days, or until Human Resources determines a sufficient number of qualified applications have been received, and will clearly state a deadline to file an application. 5.1.2 Internal Recruitment: Applicants must be currently employed with OCSD. Whenever the District intends to fill a position by promotion, the District will post the opportunity for a minimum of ten (10) business days. Employees must apply
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during the period of posting. Notices will be posted on the District’s internet. 5.2 EMPLOYMENT OPPORTUNITY BULLETINS/POSTINGS 5.2.1 The Human Resources representative prepares the employment opportunity bulletin, also known as a posting. Each posting will include the following
information: hiring salary range, department; brief job description; required qualifications, desired qualifications, posting/closing dates (if applicable), procedure for applying, brief benefits overview, physical requirements/working conditions, and/or other pertinent information as approved by the Director of Human Resources (or designee) and the Department Head (or designee)
5.2.2 The Human Resources representative provides the draft posting to the Department Head (or designee) for approval. 5.2.3 Upon approval, all jobs are posted for at least ten (10) business days, or until HR
determines a sufficient number of applicants have been received.
5.2.4 During the recruitment process, all current employees and external applicants may be interviewed at the same time at the discretion of the Department Head (or designee). If the process includes both groups, the hiring decision will be made at the completion of those interviews.
5.2.5 Job opportunities will be posted to OCSD’s online employment application
system.
5.3 ADVERTISING
5.3.1 External recruitments are advertised on the internet, sent via e-mail to all OCSD employees, and may be posted in other media when deemed appropriate by
Human Resources.
5.3.2 Internal recruitments are e-mailed to current employees and posted on OCSD’s intranet and internet sites.
5.4 APPLICANT SCREENING 5.4.1 Applications and resumes are only accepted electronically. All other application material will be accepted at the interview. Unsolicited application material will not be accepted at any time. 5.4.2 Applicants must submit a separate employment application for each vacant position using OCSD’s online employment application system. 5.4.3 Once an application is received and reviewed, it will only be selected by Human Resources for further consideration if the minimum job requirements on the class specification for the position are met. 5.4.4 The Department Head (or designee) may review applications that meet the minimum qualifications to determine which candidates may be interviewed. 5.4.5 All materials (e.g., applications, resumes, examination information and results, test questions, interviewer notes, interview packets, etc.) submitted by applicants/candidates or generated by OCSD staff during the recruitment and selection process are confidential and considered OCSD property, and not
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subject to disclosure. All recruitment files are maintained by OCSD in accordance with established record keeping guidelines. 5.5 SELECTION PROCESS 5.5.1 The selection process will consist of an assessment of each candidate's qualifications, which may vary by class specification and business need. Assessments will be conducted in a manner consistent with job-related criteria. 5.5.2 The Department Head (or designee) may recommend raters in addition to Human Resources staff as needed to participate in the selection process, who may be representatives of OCSD departments, the public, interested organizations, or other public jurisdictions. 5.5.3 Exam Contents: The Department Head (or designee) has the responsibility for exams. Exams and selection interviews shall consider the following: analysis of job duties, availability of applicants, equal employment opportunity, occupational standards, professional testing principles, supportable experience, special certification or licensing, and/or any other job-related selection content. 5.5.4 Exams will be analyzed by Human Resources (or designee) to ensure that the content and grading rubrics are valid and reliable. Exam material will relate to the fitness of the applicant for the work, duties, and requirements of the classification to be filled and shall be confined to the measurement of knowledge, skills, abilities, and/or competencies necessary to perform specific tasks. Any pertinent factor or trait which affects job performance may be considered. 5.5.5 The Human Resources representative facilitates the interview process. When interviews are completed, the interview panel members evaluate each candidate interviewed. The panel will refer a list of the top candidates based on a majority decision. The Department Head (or designee) will then choose from among the top candidates. The Department Head (or designee) will report the final hiring decision to the Human Resources Department, to include all applicable interview materials (e.g., applications, resumes, interviewer notes, interview packets, etc.). 5.6 RECRUITMENT APPEALS PROCESS 5.6.1 Employees should bring recruitment process and decision-making issues to the attention of the Human Resources Supervisor as soon as possible. The supervisor will review the issue and provide a written response within five (5) business days from the issue notification date. 5.6.2 If the issue is not resolved to the employee’s satisfaction, the employee may file a written statement concerning the problem to the Director of Human Resources within ten (10) business days of receipt of the supervisor’s decision. Upon request by either party, a meeting may be held to discuss the issue and establish remedies. 5.6.3 The employee will be provided a written response from the Director of Human Resources (or designee), within ten (10) business days after the employee’s statement is received. The decision of the Director of Human Resources, or designee, is final (see policy 6.4, Problem Solving and 6.5, Grievance Procedure). 5.6.4 Time limits may be extended for cause upon mutual consent of the parties.
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5.7 ELIGIBLE LISTS
5.7.1 An eligible list is an arrangement of applicants who have been identified as most qualified as a result of the recruitment and selection process. Lists are maintained based on job classification, are valid for six-months, and may be
extended up to twelve-months with approval from the Director of Human Resources prior to the expiration date of the list.
5.8 EMPLOYMENT OFFERS 5.8.1 The Human Resources representative determines an appropriate starting salary
for all candidates based on the applicant’s: qualifications; years of experience; and educational background, as listed on the job application. 5.8.2 The Human Resources representative reviews a job candidate’s salary request,
prepares an analysis, and makes a recommendation on placement in the applicable salary range. If market or other material conditions necessitate
offering a job candidate a pay rate up to the salary range mid-point, a Department Head may recommend, and with the concurrence of the Director of Human Resources, may approve the proposed hire rate. The General Manager, or designee, shall approve all recommended salary offers that would result in a
new hire pay rate at Step 4 or greater. Under no circumstances should panel members (excluding the Human Resources representative) or any other OCSD employee discuss salary offers with candidates or make promises of any kind. Human Resources staff are the only employees authorized to engage in salary discussions with job candidates.
5.8.3 The Human Resources representative refers the candidate for hire and routes for approval by the Department Head and General Manager, if required.
5.8.4 When the referral for hire is approved, the Human Resources representative
makes a verbal employment offer to the candidate, which is contingent upon results of a background investigation, and post offer physical and drug screen (if
applicable).
5.8.5 The Human Resources representative schedules the post offer physical and drug screen (if applicable) for the candidate, works with the Department Head (or
designee) to establish a potential start date and prepares a formal offer letter for the candidate.
5.8.6 When the Human Resources representative (or designee) has cleared the
background investigation, post offer physical and drug screen (if applicable) results, the applicant will be contacted to confirm the employment offer. The
Human Resources representative sends letters of regret to unsuccessful candidates. Current employees are contacted personally prior to receiving letters
of regret. 5.8.7 The Human Resources representative coordinates the candidate’s start date.
5.8.8 In the event that a candidate is selected and voluntarily or involuntarily vacates the position prior to completing the required probationary period, the Human
Resources Department, at the request of the Department Head (or designee), may exercise the option to extend an offer to the second candidate from the original interview process.
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6.0 PROMOTIONS
6.1 Promoted employees will receive the equivalent of a one (1) step increase in pay, not to exceed the top of the range for the new classification or the minimum rate of the new classification, whichever is greater.
6.1.1 Promotional increase in pay will be effective the first day of the next pay period following the approval of referral to hire by the Department Head (or designee).
7.0 EXCEPTIONS
7.1 EMPLOYMENT OF FORMER EMPLOYEES
7.1.1 Employment of former employees for full-time equivalent or part-time positions shall be subject to and conducted in accordance with this policy. 7.1.2 Employment of a former employee is subject to the approval of the General
Manager and the Director of Human Resources.
7.1.3 In all cases, approval of the General Manager and the Director of Human Resources shall be obtained prior to an offer of employment to a former employee.
7.1.4 OCSD policy prohibits the rehire of former full-time, regular employees or “at-will” employees who: were terminated for workplace misconduct; resigned while
charges were pending against the employee; resigned while serving a suspension; failed to provide two (2) weeks written notice in advance of
resignation depending upon employment status, unless approved by the Director of Human Resources, or designee; or failed to return to work following an
absence without leave of forty (40) consecutive work hours without notifying the immediate supervisor or the Human Resources Department with an acceptable
reason for their absence.
7.1.5 If any former employee commences doing business wherein the employee, his/her spouse, or members of his/her immediate family are sole proprietors, or
majority or controlling shareholders or owners of a corporation, partnership or other business entity, such business shall not be retained as an independent
contractor or consultant to provide service directly to OCSD for a period of one (1) year after leaving OCSD’s employment. Thereafter, said business entity shall
be allowed to contract with OCSD upon compliance with all resolutions and regulations of OCSD then in effect, relating to the procurement of services.
7.1.6 If any former employee becomes employed by any firm or business entity in
which the former employee, his/her spouse or members of his/her immediate family own less than the majority or controlling interest in said entity, said entity
shall not be prohibited from contracting with the OCSD. However, the former employee shall not perform work on OCSD projects for a period of one (1) year
after leaving OCSD employment; nor shall such former employee contact OCSD officers or employees for the purpose of attempting to influence any OCSD decision, including but not limited to, the award of contract, issuance of permits, or compromise of administrative civil penalties, for a like period of one (1) year.
Said services shall be obtained only in accordance with all rules and procedures of OCSD relating to procurement.
7.1.7 Any OCSD employee who receives an offer of employment or a request to
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discuss potential employment from any person or business entity performing services for OCSD shall report such contact to his or her immediate supervisor, who shall decide whether any change in assignment is necessary or appropriate while the offer or discussions are pending. 7.1.8 The prohibitions of this policy may be waived by the Administration Committee of
the Board of Directors if, on a case-by-case basis, it is determined to be in the best interests of OCSD to do so. 7.1.9 All former employees who are rehired will be placed on an initial probationary period as defined in this policy. All prior service with OCSD will not be counted for accrual purposes including, but not limited to, leaves of absence and
seniority. 7.2 RE-EMPLOYMENT OF OCSD RETIRED EMPLOYEES
7.2.1 The General Manager may, with the written approval of the Board Chair, employ on an as-needed basis, a former employee retired from OCSD when the
individual possesses knowledge and expertise of unique and particular benefit to OCSD. Retired members will have to wait at least 180 days before returning to work for OCSD on a limited time basis (960 hours or less a fiscal year). The length of service performed in any one (1) year shall be limited in accordance
with the provisions prescribed by the Orange County Employees’ Retirement System.
7.2.2 As-needed service, by a former employee retired from OCSD, shall be
compensated at the same current hourly rate of the retired employee’s position classification, or if no such classification exists, at a rate not to exceed that paid
for the most comparable classification. The retired employee shall not be entitled to receive any benefits otherwise payable to OCSD employees. In the event any
employment under this provision involves work assignments outside of Orange County, the current expense reimbursement policy established for regular
employees will apply.
7.2.3 On occasion, OCSD may offer an early retirement incentive to staff under economic conditions in which it is deemed necessary. Employees who select an
early retirement incentive offered by OCSD may not be eligible for rehire.
7.3 LATERAL TRANSFERS
7.3.1 Employees may request a lateral transfer to a budgeted vacant position within the same classification of another department. For a lateral transfer to be
considered, the employee must have demonstrated satisfactory performance within the last six (6) months of the request and have no pending disciplinary
action. The lateral transfer must be of benefit to OCSD. 7.3.2 Employees who wish to be considered for a lateral transfer shall notify the Human Resources Department in writing of their intent prior to recruitment of the
budgeted position. Employees who are interested in a lateral transfer, but are unaware of any budgeted vacant positions within the same classification, may
contact the Human Resources Department. The employee’s written intent must be approved by any affected department head and the Director of Human Resources. In the event a transfer is approved and accepted by the employee,
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the department from which the employee is transferring may determine the effective date based upon operational requirements and a reasonable period of time to acquire a suitable replacement. 7.3.3 Lateral transfers do not normally involve increased levels of duties and responsibilities, or otherwise qualify as promotions, and therefore do not involve
salary adjustments. 7.3.4 In the event an adjustment appears warranted based on extenuating circumstances, the adjustment must have written approval from the department head prior to being extended to the employee. 8.0 PROVISIONS AND CONDITIONS 8.1 The interview process for Student Intern positions shall be an abbreviated version of the process outlined in section 5.6 and will be administered by the appropriate division
manager/supervisor and a Human Resources representative.
8.2 OCSD’s Board of Directors must approve unbudgeted positions for new hires or promotions before any internal or external recruitment effort is initiated. 8.3 Hiring an individual into a budgeted position requires the approval of the Department
Head and General Manager.
8.4 Promoting an individual into a budgeted position requires the approval of the Division Manager, Department Head or General Manager.
8.5 Employees on Performance Improvement Plans are not eligible for promotional
opportunities and/or status change.
8.6 INITIAL PROBATIONARY PERIOD
8.6.1 Unless designated as an “at-will” Executive Management Team (EMT) member or Student Intern, all new employees and employees who are reassigned or
laterally transferred serve a probationary period. The probationary period begins with the date of hire, reassignment, or transfer and extends to at least the first
day of the pay period following twenty-six (26) weeks of employment without a break in service, unless otherwise stipulated by a bargaining unit MOU. For new
employees, this probationary period is regarded as an extension of the hiring process, and provides an opportunity for both the employee and OCSD’s
management to assess, over a substantial period of time, whether or not the hiring decision was appropriate and resulted in a relationship that adequately
meets the needs of both the individual and OCSD.
8.6.2 The probationary period may be extended up to a maximum of an additional ninety (90) days prior to the expiration of the probationary period. An employee’s
probationary period may be extended when there is a need to further assess the individual’s abilities to satisfactorily perform the duties required for their job classification. Probationary employees may be released by OCSD at any time during the probationary period (including any extension) without cause or reason.
OCSD will extend an employee’s probationary period for the length of any period during which an employee is on an extended leave of absence during the
probationary period. 8.6.3 A probationary employee’s work performance is closely monitored during this
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period to ensure that the employee understands the duties, responsibilities and management expectations of the position, and to allow an opportunity for the supervisor or manager to provide proper direction and guidance. Employees who do not demonstrate the potential for meeting performance expectations for their position within a reasonable period of time may be released prior to the completion of the Probationary Period. Probationary employees shall serve at the
will of OCSD during this period. In the event of release of a probationary employee, the employee shall not be entitled to receive any severance pay.
8.7 PROMOTIONAL PROBATIONARY PERIOD 8.7.1 All promoted employees who have successfully completed the initial probationary
period, except those designated as “at-will” employees, shall serve a promotional probationary period beginning with the effective date of promotion lasting to at least the first day of the pay period following twenty-six (26) weeks of employment without a break in service. This period is regarded as an extension
of the selection process, and provides an opportunity for both the employee and OCSD management to assess, over a substantial period of time, whether or not
the decision was appropriate. For those employees promoted during the pendency of their initial probationary period, such period shall run concurrently with the promotional probationary period and shall apply over the promotional probationary period while it remains in effect. Should the initial probationary
period end before the promotional probationary period, the promoted employee shall remain on the promotional probationary period for the remaining period until
at least the first day of the pay period following twenty-six (26) weeks of employment without a break in service.
8.7.2 At any time during the promotional probationary period an employee may be
returned to his or her prior position. The promotional probationary period may be extended by OCSD management for up to a maximum of an additional ninety
(90) days. If an employee is promoted during his or her initial probationary period, the period shall be extended until at least the first day of the pay period
twenty-six (26) weeks after the effective date of the promotion.
8.8 REFERENCE CHECKS
8.8.1 Employment with OCSD is contingent upon a pre-employment screening process which may include a physical examination, drug/alcohol test and background
investigation. Candidates must also be able to provide documentation authorizing their legal right to work in the United States as per the Immigration
Reform and Control Act of 1986.
8.8.2 The background check will be conducted after an applicant has been selected as the best candidate for the position and given a conditional offer of employment.
If a background check yields information that is of concern to OCSD, the applicant will be provided an individualized assessment and given an opportunity
to review the findings and present information regarding inaccuracy and rehabilitation. 8.8.3 OCSD may verify information contained in the job application of a prospective
employee with the prospective employee’s authorization.
8.8.4 Inquiries to OCSD employees regarding reference or employment verification checks of former or present employees shall be discussed with or referred to Human Resources prior to any response.
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9.0 RELATED DOCUMENTS 9.1 Policy 1.6, Nepotism 9.2 Policy 1.7, At-Will EMT Employment Agreements
9.3 Policy 1.12, Student Internship Program 9.4 Policy 2.1, Classification & Compensation 9.5 Policy 6.4, Problem Solving Procedure
9.6 Policy 6.5, Grievance Procedure 9.7 Public Employee Pension Reform Act (PEPRA)
9.8 Equal Pay Act
9.9 California Government Code, Section 6254
Page 1 of 1
ADMINISTRATION COMMITTEE Meeting Date 12/12/18 To Bd. of Dir. --
AGENDA REPORT Item Number 5 Item Number --
Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenances SUBJECT: ODOR AND CORROSION CONTROL PRESENTATION
GENERAL MANAGER'S RECOMMENDATION Information Only.
BACKGROUND Each month, staff provides an information presentation on topics of interest to the Board of Directors. This month’s topic: Odor and Corrosion Control.
RELEVANT STANDARDS
• 24/7/365 treatment plant reliability
• Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting
• Meet volume and water quality needs for the GWRS
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package: N/A
ORANGE COUNTY SANITATION DISTRICT
COMMON ACRONYMS
ACWA Association of California
Water Agencies LAFCO Local Agency Formation
Commission RWQCB Regional Water Quality
Control Board
APWA American Public Works
Association LOS Level Of Service SARFPA Santa Ana River Flood
Protection Agency
AQMD Air Quality Management
District MGD Million Gallons Per Day SARI Santa Ana River
Interceptor
ASCE American Society of Civil Engineers MOU Memorandum of Understanding SARWQCB Santa Ana Regional Water Quality Control Board
BOD Biochemical Oxygen Demand NACWA National Association of Clean Water Agencies SAWPA Santa Ana Watershed Project Authority
CARB California Air Resources
Board NEPA National Environmental
Policy Act SCADA Supervisory Control And
Data Acquisition
CASA California Association of Sanitation Agencies NGOs Non-Governmental Organizations SCAP
Southern California
Alliance of Publicly Owned
Treatment Works
CCTV Closed Circuit Television NPDES National Pollutant Discharge
Elimination System SCAQMD South Coast Air Quality
Management District
CEQA California Environmental
Quality Act NWRI National Water Research
Institute SOCWA South Orange County
Wastewater Authority
CIP Capital Improvement
Program O & M Operations & Maintenance SRF Clean Water State
Revolving Fund
CRWQCB California Regional Water
Quality Control Board OCCOG Orange County Council of
Governments SSMP Sewer System
Management Plan
CWA Clean Water Act OCHCA Orange County Health Care Agency SSO Sanitary Sewer Overflow
CWEA California Water Environment
Association OCSD Orange County Sanitation
District SWRCB State Water Resources
Control Board
EIR Environmental Impact Report OCWD Orange County Water District TDS Total Dissolved Solids
EMT Executive Management Team OOBS Ocean Outfall Booster Station TMDL Total Maximum Daily Load
EPA US Environmental Protection
Agency OSHA Occupational Safety and
Health Administration TSS Total Suspended Solids
FOG Fats, Oils, and Grease PCSA
Professional
Consultant/Construction Services Agreement WDR Waste Discharge
Requirements
gpd gallons per day PDSA Professional Design Services
Agreement WEF Water Environment
Federation
GWRS Groundwater Replenishment
System POTW Publicly Owned Treatment
Works WERF Water Environment &
Reuse Foundation
ICS Incident Command System ppm parts per million WIFIA Water Infrastructure
Finance and Innovation Act
IERP Integrated Emergency
Response Plan PSA Professional Services
Agreement WIIN
Water Infrastructure
Improvements for the
Nation Act
JPA Joint Powers Authority RFP Request For Proposal WRDA Water Resources
Development Act
ORANGE COUNTY SANITATION DISTRICT
GLOSSARY OF TERMS
ACTIVATED SLUDGE PROCESS – A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater.
BENTHOS – The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone.
BIOCHEMICAL OXYGEN DEMAND (BOD) – The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water.
BIOGAS – A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used
as a fuel.
BIOSOLIDS – Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for
commercial and home gardens to improve and maintain fertile soil and stimulate plant growth.
CAPITAL IMPROVEMENT PROGRAM (CIP) – Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities.
COLIFORM BACTERIA – A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater.
COLLECTIONS SYSTEM – In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water.
CERTIFICATE OF PARTICIPATION (COP) – A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues.
CONTAMINANTS OF POTENTIAL CONCERN (CPC) – Pharmaceuticals, hormones, and other organic wastewater contaminants.
DILUTION TO THRESHOLD (D/T) – The dilution at which the majority of people detect the odor becomes the D/T for that air sample.
GREENHOUSE GASES (GHG) – In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming (“greenhouse effect”).
GROUNDWATER REPLENISHMENT SYSTEM (GWRS) – A joint water reclamation project that proactively responds to Southern California’s current and future water needs. This joint project between the Orange County Water District and the Orange County
Sanitation District provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply.
LEVEL OF SERVICE (LOS) – Goals to support environmental and public expectations for performance.
N-NITROSODIMETHYLAMINE (NDMA) – A N-nitrosamine suspected cancer-causing agent. It has been found in the
Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment.
NATIONAL BIOSOLIDS PARTNERSHIP (NBP) – An alliance of the National Association of Clean Water Agencies and Water Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance.
PLUME – A visible or measurable concentration of discharge from a stationary source or fixed facility.
PUBLICLY OWNED TREATMENT WORKS (POTW) – A municipal wastewater treatment plant.
SANTA ANA RIVER INTERCEPTOR (SARI) LINE – A regional brine line designed to convey 30 million gallons per day of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment.
SANITARY SEWER – Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban runoff.
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD) – Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry.
SECONDARY TREATMENT – Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater.
SLUDGE – Untreated solid material created by the treatment of wastewater.
TOTAL SUSPENDED SOLIDS (TSS) – The amount of solids floating and in suspension in wastewater.
TRICKLING FILTER – A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them.
URBAN RUNOFF – Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans.
WASTEWATER – Any water that enters the sanitary sewer.
WATERSHED – A land area from which water drains to a particular water body. The Orange County Sanitation District’s service area is in the Santa Ana River Watershed.