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Home My WebLink About1995-09-13' , DRAFT County Sanitation Districts of Orange County, California P.O. Box 8127 • 10844 Ellis Avenue Fountain Valley, CA 92728-8127 Telephone: (714) 962-2411 MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE .,../ Wednesday, September 13, 1995. 5:30 P.M. A meeting of the Finance, Administration and Human Resources Committee of the County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California was held on September 13, 1995 at 5:30 p.m., at the Districts' Administrative Offices. (1) ROLL CALL The roll was called and a quorum declared present, as follows: Committee Directors Present: George Brown, Chairman Jan Debay Burnie Dunlap James Flora John M. Gullixson Wally Linn Thomas Saltarelli William G. Steiner Peer Swan Other Directors Present John Collins Don R. Griffin Committee Directors Absent: John C. Cox, Jr., Joint Chairman Roger R. Stanton, Vice Chairman Staff Present: Donald F. McIntyre, General Manager Blake P. Anderson, Assistant General Manager Judith A Wilson, Assistant General Manager Gary G. Streed, Director of Finance Ed Hodges, Director of Maintenance Bob Ooten, Director of Operations Nancy J. Wheatley, Director of Technical Srvs. David A Ludwin, Director of Engineering Gary Hasenstab, Director of Human Resources Steven J. Hovey, Director of Information Tech. Michael D. White, Controller Stephen V. Kozak, Financial Manager Others Present Thomas L. Woodruff, General Counsel FiL[::D (2) APPOINTMENT OF A CHAIRMAN PRO TEM No appointment was necessary. L, the Office of ihe Secret:.:: 1 . _Gou n~ Sanitalj9n Dlstric;(.,_ , w {s) & ~ . .3 5, /,;, '< ll,f3 I</ Bu-~~-K~27_1_99_5_ (3) PUBLIC COMMENTS No comments were made. .. . Minutes of Finance, A Page2 September 13, 1995 and Human Resources Committ, (4) REPORTS OF THE COMMITTEE CHAIR, GENERAL MANAGER. ASSISTANT GENERAL MANAGER{$), DIRECTOR OF FINANCE/TREASURER. DIRECTOR OF HUMAN RESOURCES, DIRECTOR OF INFORMATION TECHNOLOGY AND GENERAL COUNSEL (a) Report of the Committee Chair George Brown, Chairman, reported that the Districts had received the Government Finance Officers Association Award of Excellence for financial reporting for 1993-94, our first application, and presented a commendation from the GFOA to Mike White, Controller. (b) Report of the General Manager The General Manager, Donald F. McIntyre, reported that he had received a very good response to his request for staff applications to serve on a training program design and implementation task force. (c) Report of Assistant General Manager -Operations Blake Anderson asked Ed Hodges, Director of Maintenance, to give a brief overview of his presentation to the OMTS Committee regarding our application to the SCAQMD to obtain AB 2766 grant funds to install a natural gas fueling station in conjunction with our solids haulers in order to reduce air emissions. Report of Assistant General Manager -Administration Judy Wilson reported on the uncertainties of legislative activities regarding the Orange County Bankruptcy Consensus Plan, and the prospects for the Governor's approval. (d) Report of the Finance Director/Treasurer Finance Director/Treasurer Gary Streed updated the Committee on the status of the Districts' COP program, and the performance of remarketing agents PaineWebber and J.P. Morgan. He reviewed a chart indicating the interest rates paid on each issue for the past month. He also reported that Moreland & Associates, the Districts' new independent financial auditors, were well into their review, no significant findings had arisen, and the report would be available at the next Committee meeting. Pacific Investment Management Company, "PIMCO," the Districts' Investment Manager, and Mellon Trust Company, Custodial Bank, both signed their final contracts on September 6, 1995, in time for the U.S. Treasury Bill maturity on September 7. The Committee discussed how Minutes of Finance, A · and Human Resources Committ Page 3 September 13, 1995 Districts' funds are now allocated to the Long-term Operating Monies Portfolio, $233,100,000; the Short-term Operating Monies Portfolio, $60,000,000; and the State Local Agency Investment Fund, $20,000,000. Director Linn asked that investments in LAIF be monitored. (e) Report of the Director of Human Resources None. (f) Report of the Director of Information Technology None. (g) Report of General Counsel None. (5) APPROVAL OF MINUTES It was moved, seconded and duly carried to approve the draft minutes of the September 13, 1995, meeting of the Finance, Administration and Human Resources Committee. (6) Consideration of Excess Capacity Deferred Payment Agreements. Judy Wilson presented an overview of actions taken to date by the Joint Boards relating to excess capacity charges and deferred payment agreements, and the Boards' direction to develop an interest rate charge model for payment agreements. After discussion on this item, it was moved, seconded and duly carried to recommend approval to the Executive Committee of an interest rate for deferred excess capacity charge agreements equal to the rate charged on the date of the agreement on U.S. Treasury Bills or Notes with a term most close to the term of the agreement plus 100 basis points. (7) OLD BUSINESS None. Minutes of Finance, Ad · and Human Resources Committ~ ., Page4 September 13, 1995 (8) NEW BUSINESS FAHR95-35 Consideration of Motion to Receive and File Quarterly Staff Summary Report of Training and Travel Costs for the Quarter Ended June 30, 1995 Gary Streed presented the Quarterly Staff Summary Report of Training and Travel Costs for the Quarter Ended June 30, 1995 for the Committee. It was moved, seconded and duly carried to receive and file this report. Staff was reminded to concentrate training activities in Southern California whenever possible. FAHR95-36 Consideration of Motion to Recommend Approval of Extension of Real Property Lease, Plant No. 1, Lease No. L-009-1, with Lessee, First Bank of California General Counsel Tom Woodruff reviewed the issues associated with Lease No. L-009-1. After discussion on this matter, it was moved, seconded and duly carried to recommend approval to the Executive Committee of the extension of Real Property Lease, Plant No. 1, Lease No. L-009-1, with First Federal Bank of California, for a term of three years at the greater of $60,000 per year or 10% of gross. FAHR95-37 Consideration of Motion to Receive and File Ernst & Young (EY) Finance Function Review Quarterly Status Matrix Gary Streed and Steve Hovey reviewed the initial Status Matrix summarizing the EY recommendations time lines and current status. After discussion on this matter, it was moved, seconded and duly carried to receive and file this report. The Committee further directed staff to continue to report on their goal achievements on a quarterly basis. (9) CLOSED SESSION There was no closed session required. (10) OTHER BUSINESS, IF ANY None. (11) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING Director Swan requested a future staff report on our efforts to benchmark the cost per million gallons and to improve efficiency. Minutes of Finance, Ad, .. -: . .,. and Human Resources Committ~--,_ Page 5 September 13, 1995 (12) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND A STAFF REPORT None. (13) CONSIDERATION OF UPCOMING MEETING DATES AND ITEMS TO BE DISCUSSED AT THOSE MEETINGS The next Committee meeting is scheduled for Wednesday, October 11, 1995. (14) ADJOURNMENT The meeting was adjourned at 6:50 p.m. GGS:lc J:\WPDOC\FIN\CRANE\FPC.MTG\FAHR.95\FAHR.MIN\MFAHR9.95 STATE OF CALIFORNIA ) ) ss. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, I hereby certify that the Notice and the Agenda for the Finance, Administration and Human Resources meeting held on September 13, 1995, was duly posted for public inspection in the main lobby of the Districts' offices on September 8, 1995. IN WITNESS WHEREOF, I have hereunto set my hand this 13th day of Sepbember, 1995. Penny Kyle, Secretary o Sanitation Districts Nos. County, California J:IWPOOC\FINICRANBFPC.MTG\FAHR.951CERTPOS1'CERTPOS9.95 f he oards of Directors of County , 6, 7, 11, 13 & 14 of Orange A.M. phone: (714] 962,-2411 mailing address: po. so~ 0127 Fount.afn Valley, CA 92728-8127 street address: 10844 Elns Avenue FountaTn Valley, CA 92706-7018 Member Agencies • Cities Arraheim Brea Buena Park cypress Founcain Valley Fullerton Huriuington Beach Irvine La Habra La Palma Las Alamitos Newport Beaafi Orange Pfacentia Sanes Ana Seal Beach Stanciln Tustin Villa Park Yonba Linda County of Orange Sa11ftar,y l:listrlcts CostlB Mesa Garaan Grpve Mfdway City Water Districts Irvine Ranch CouNTl:11TATION D1srn1cTs OF •R(1 CouNTY, CALIFORNIA September 7, 1995 NOTICE OF MEETING FINANCE. ADMINISTRATION AND HUMAN RESOURCES COMMITTEE COUNTY SANITATION DISTRICTS NOS. 1, 2, 3, 5, 6, 7, 11, 13 AND 14 OF ORANGE COUNTY, CALIFORNIA WEDNESDAY. SEPTEMBER 13. 1995 -5:30 P.M. DISTRICTS' ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708 A regular meeting of the Finance, Administration and Human Resources Committee of the Joint Boards of Directors of County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California, will be held at the above location, time and date. J;\WPDOC\FIN\CRANE\FPC.MTGIFAHR.95\NOTICBNOT1CBl.95 A Public Wastewater and Environmental Management Agency Committed to Protecting the Environment Since 1954 September 7, 1995 FINANCE, ADMINISTRATION AN_D HUMAN RESOURCES COMMITTEE TENTATIVELY SCHEDULED MEETING DATES Finance, Administration and Action Items to Human Resources Executive Committee Action Items to Joint Committee Meetings Meeting Board Meeting September September 13, 1995 September 20, 1995 September 27, 1995 October October 11, 1995 October 18, 1995 October 25, 1995 November None Scheduled None Scheduled November 15, 1995 December None Scheduled None Scheduled December 13, 1995 January January 10, 1996 January 17, 1996 January 24, 1996 February February 14, 1996 February 21, 1996 February 28, 1996 March March 13, 1996 March 20, 1996 March 27, 1996 April April 10, 1996 April 17, 1996 April 24, 1996 May May 8, 1996 May 15, 1996 May 22, 1996 June June 12, 1996 June 19, 1995 June 26, 1996 July July 10, 1996 July 17, 1996 July 24, 1996 August None Scheduled None Scheduled August 28, 1996 J:\WPOOCIFlNICRANEIFPC.MTGIFAHR.95\NOTICE\NOTICEB.95 CSDOC • P.O. Box 8127 • Fountain Valley, CA 92728-8127 • (71-4) 962-2-411 /' I ' . September 13, 1995 AGENDA FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE COUNTY SANITATION DISTRICTS NOS. 1, 2, 3, 5, 6, 7, 11, 13 AND 14 OF ORANGE COUNTY, CALIFORNIA DISTRICTS' ADMIN[STRA TIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708 REGULAR MEETING WEDNESDAY,'SEPTEMBER 13, 1995 -5:30 P.M. ••••••••••·••·••••••••••••• •••·•-=•••••••••••·•••••••••••'••••••••••• ac••••••••••••••••· .. •• ..................... .,.,.,..,_•••• .. ••••••••••-••• .. • .. •••••• .. • .. •• .. • .. •r••._,. ................ •••••••t . ! j In accordance with the requirements of California Government Code Section 54954.2, this ! agenda has been posted in the main lobby of the Districts' Administrative Offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the Office of the Board Secretary. In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or that there is a need to take immediate action which need came to the attention of the Committee subsequent to the posting of the agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. . ~ ......................................................................................................................................................... _ ...................................................................................................... . ...• • ( 1 ) Roll Call (2) Appointment of Chairman pro tern, if necessary. (3) Public Comments: All persons wishing to address the Committee on specific agenda items or matters of general interest should do so at this time. As determined by the Chairman, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to five minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b ). September 13, 1995 (4) The Committee Chairman, General Manager, Assistant General Manager(s), Director of Financeff reasurer, Director of Human Resources and General Counsel may present verbal and/or written reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee Members. (a) Report of Committee Chairman (b) Report of General Manager - (c) Report of Assistant General Manager(s) (d) (1) Report of Director of Finance (2) Treasurer ( e) Report of Director of Human Resources (f) Report of General Counsel (5) Approval of draft Finance, Administration and Human Resources Committee Minutes for Meeting of July 12, 1995. (6) Consideration of Excess Capacity Deferred Payment Agreements. (Judy Wilson) (7) Old Business. None. (8) New Business. FAHR95-35 FAHR95-36 FAHR95-37 Consideration of Motion to Receive and File Quarterly Staff Summary Report of Training and Travel Costs for the Quarter Ended June 31, 1995 (Gary Streed) Consideration of Motion to recommend approval of extension of Real Property Lease, Plant No. 1, Lease No. L-009-1 with lessee, First Bank of California. (Gary Streed, Tom Woodruff) Consideration of Motion to receive and file Ernst & Young Finance Function Review Quarterly Status Matrix. (Gary Streed, Steve Hovey) -2- \ September 13, 1995 (9) Closed Session. : . . . . . . . .. . : ':.... .· . . . . . . . . . . . . . ·.. . . . . . l. Closed Session: During the course of conducting the business set forth on this ·==.· agenda as a regular meeting of the Committee, the Chairman may convene the Committee in closed session to consider matters of pending or potential litigation, or personnel matters, I pursuant to Government Code Sections 54956.9, 54957 or 54957 .6. 1=·: Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employee actions or negotiations with employee representatives; or ! which are exempt from public disclosure under the California Public Records Act, may be !=·==· reviewed by the Committee during a permitted closed session and are not available for public inspection. At such time as final actions are taken by the Committee on any of these subjects, the minutes will reflect all required disclosures of information. : . ...................... ·••· ................ _.__ ·······------------·· ·---····· -· ........................................................................................ -·••··· (a) Convene in closed session, if necessary (b) Reconvene in regular session. (c) Consideration of action, if any, on matters considered in closed session. ( d Report on discussion taken in closed session, as required. (10) Other business, if any. (11) Matters which a Director would like staff to report on at a subsequent meeting. (12) Matters which a Director may wish to place on a future agenda for action and a staff report. (13) Consideration of upcoming meeting dates and items to be discussed at those meetings. (14) Adjourn. i N*•=·~.:::·::~:ra, ·-·-·-·--··---·---·-·-·----------·-·--····-···--········, :::::: l:~:. If you have any questions regarding the Agenda, or wis(h 31 to 0 )p 4 1a 3 c 1 e- 2 it 1 e 8 m 5 s on the Finance, Administration and Human Resources Agenda, Committee members should contact the Committee Chair or Secretary ten days in advance of the Committee meeting. Committee Chair: George Brown Secretary: Lenora Crane (714) 962-2411, Ext. 2501 1 (714) 962-3954 (FAX) ····-···· . .,..... . .............. ,. ,••·······••·••······· --................................. -.................. -............................................................................. .4 -3- September 13, 1995 STAFF REPORT (4)(d)(2): Treasurer's Report -Supplement Background The summary Treasurer's Report included in the FAHR Committee agenda mailing indicated that investment funds have been transferred to PIMCO, the Districts' newly contracted money manager. This supplement briefly explains how the Districts' funds will now be invested. On September 7, 1995, our Treasury Bill investments of $309,100,000 matured. As previously arranged with the custodial bank and the Districts' commercial bank, the funds were quickly wired for reinvestment as follows: Long-term Operating Monies Portfolio (PIMCO) Short-term Operating Monies Portfolio (PIMCO) Local Agency Investment Fund (LAIF) $233,100,000 60,000,000 16,000,000 $309.100.000 The funds were allocated to three different investment portfolios and strategies to maximize safety, flexibility, diversification, liquidity and yield. The Long-term Operating Monies Portfolio is structured primarily to hold construction and other reserves which are not expected to be needed in the current year. Investments in this fund may have a maturity of as long as five years. This longer maturity, which matches the longer term cash flow needs, allows the Portfolio Manager to "move out on the yield curven to earn maximum yields. Short-term fluctuations in the marketplace will not impact these investments, and their performance will be monitored against two long-term benchmarks: The Merrill Lynch Government and Corporate One to Five-year Maturity Index and the Callan Defensive Fixed-Income Style Group. The Short-term Operating Monies Portfolio is structured for current year operating, debt service and capital needs. Investments in this fund must have a maturity of less than one year. These short-term investments will be generally on the steeper, more volatile front end of the yield curve. The average duration of the portfolio cannot exceed 90 days. Performance will be measured against the three-month Treasury Bill and a fixed income fund. CSOOC • P.O. Box 8127 • Fountain Valley, CA 92728-8127 • Tel. (714) 962-2411 • FAX (714) 962-3954 Treasurer's Report -Supplement,, Page2 September 13, 1995 The State of California Local Agency Investment Fund (LAIF) will be used for day-to-day working capital needs. With this transfer, the maximum authorized by our investment policy and the state, $20 million, will be invested in this fund. Routine cash receipts, accounts payable, and payroll will all be processed from LAIF through our commercial bank. This arrangement provides maximum flexibility to staff as demands on deposits can be wire-transferred within hours at no cost to the Districts, and without liquidating any investments in the short-term portfolio at adverse market conditions. Staff and Callan Associates continue to review portfolio performance and cash flow requirements, including the five and ten-year projections in the budget, to best allocate funds among the portfolios. The current allocation to the Short-term Portfolio and to LAIF is based upon the estimated cash flow needs for the first six months of 1995-96 before property taxes and user fees are received. Reports for September performance including cost and market value of the portfolio, dollar value change in the portfolio from a 1 % interest rate change and other measurements, in accordance with the adopted Investment Policy, will be presented at the October Committee meeting. Staff Recommendation Information only. GGS:lc J:IWPOOCIFINICRANEIFPC.MTGIFAHR.a5\STAFF.RPTISRFAHRTR.95 FINANCE. ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING DAT: September 13.1995 COMMITTEE MEMBERS GEORGE BROWN (Chair) •••••••••••••••••••••• ROGER R. STANTON (Vice Chair) ••••••••••••••• JAN DEBAY •••••••••••••••••••••••••••••••••• BURNIE DUNLAP •••••••••••••••••••••••••••••• JAMES H. FLORA ••••••••••••.••.•••••••••••••• JOHN M. GULLIXSON •••••••••••••••••••••••••• WALLY LINN •••••••••••••••.•••••••••••••••••• THOMAS SALTARELLI •.••••••••••••••••••••••• WILLIAM G. STEINER •••••••••••••••••••••••••• PEER A. SWAN (VJC) •••••••••••••••••••••••••• JOHN C. COX, JR. (JC) OTHER DIRECTORS ~JO~H~N~C~O=L=L=IN....,.S ......... ___ ••••••••••••••••••••• -=Da..:O:a.:.N"-G=R:.:.:l"--FF:..,l:..:.N ____ ••••••••••••••••••••• STAFF PRESENT DON MCINTYRE, GENERAL MANAGER •••••••••••••••••••••••• BLAKE ANDERSON, ASST. GENERAL MANAGER ••••••••••••••• JUDY WILSON, ASST. GENERAL MANAGER •••••••••.••••••••• NANCY WHEATLEY, DIRECTOR OF TECHNICAL SERVICES •••••• GARY STREED, DIRECTOR OF FINANCE •••••••••••••••••••••• GARY HASENSTAB, DIRECTOR OF PERSONNEL ••••••••••••••• ED HODGES, DIRECTOR OF MAINTENANCE ••••••••••••••••••• BOB OOTEN, DIRECTOR OF OPERATIONS •••••••••••••••••••• DAVID LUDWIN, DIRECTOR OF ENGINEERING ••••••••••••••••• STEVE HOVEY, DIRECTOR OF INFORMATION SERVICES •••••••• STEVE KOZAK, FINANCIAL MANAGER •••••••••••••••••••••••• MIKE WHITE, CONTROLLER ••••••••••••••••••••••••••••••••• OTHERS TOM WOODRUFF, GEN'L. COUNSEL •••••••••••••••••••••••••• -------.•..............................•.... ROI..L1.95 TIME: 5:30 P.M. ADJOURN ___ _ ABSENT PRESENT (4){d){1) Director of Finance Report 1 FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE {4){d){1) Summary: AGENDA FOR SEPTEMBER 13, 1995 Director of Finance Report In June 1995, the daily rate COP program remarketing agents were changed from Merrill Lynch to Paine Webber for the Series "A" and the 1993 Refunding COPs, and to J.P. Morgan for the Series "C" COPs. Series "B" COPs have been refunded and the 1992 Refunding COPs are remarketed by PaineWebber in a weekly mode. The attached graph shows the variable interest rates on each of the daily rate COPs since the last report, and the effective fixed rate for the two refunding issues which are covered by an interest rate exchange agreement commonly called a "swap." Staff will maintain our continuous rate monitoring and ongoing dialog with the remarketing agents to keep the Committee fully informed about developments in the program as they occur and at each meeting. Staff Recommendation Information only. J:\WPDOC\FIN\CRANE\FPC.MTGIFAHR.95\JTEM\DOF.995 \ f ,---a----,--~---.-----i--..------.-----.-----"T ss-das-90 ss-Bnv-oc Q. cu ,:: en · ss-Bnv-cz C: Ql (!) 0 0 en t-a:: + 0 c.. ss-Bnv-g~ w Q. a:: cu ,:: ~ en (!) c( 0 + t-ss-Bnv-so en -:c C: w cu e> t-0 ~ :E a: ss-5nv-zo -; c.. + 0 0 0 ~ 0 .c .c 0 ss-1nr-9z ~ en Ql C: 0 'iii 0.. + ss-1nr-s~ · ss-1nr-z~ -I () >< .,_: CJ) (0 ~ :i: ....-w ....-ss-1nr-Lo ~ '-0 0 0 0 0 0 0 0 .., 0 0 0 0 0 ~ 0 0::: . w '° '<I' M N ci S2 , w -~ (%) 3J.'v1l !;;; > 0 CJ) --0 -0) u 0 (4)(d)(2) Treasurer's Report FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (4)(d)(2) Summary AGENDA FOR SEPTEMBER 13, 1995 Treasurer's Report During June, the Committee and the Board selected Pacific Investment Management Company, "PIMCO," to serve as the Districts' Investment Manager, and Mellon Trust Company to serve as Custodial Bank. Since the Board action, staff, our investment advisor Callan & Associates, and General Counsel have been working together and with PIMCO and Mellon to finalize the terms and conditions of their engagement. Finalization has seemed to be close for July and August and our investments in U.S. Treasury Bills have been kept to two-week maturities to facilitate a transition. On September 6, 1995, both PIMCO and Mellon signed their final contracts in time for the U.S. Treasury Bill maturity of September 7. The first monthly reports from PIMCO are expected for the October Committee meeting. CSDOC State of Calif. LAIF Bank of America U.S. Treasury Bills Due 9n Debt Service Reserves at Trustees Garden Grove San District Orange Co. Investment Pool Staff Recommendation Information Only. J:IWPOOC\FINICRANEIFPC.MTGIFAHR.95\ITEM\lREASRPT.115 Balances Estimated August 31, 1995 Yield $ 5,908,203 5.97% 456,195 4.58% 308, 138,055 5.44% 20,565,652 6.41% $335,068,105 5.51% $ 28,987 5.97% 422,204 5.89% $335.519.296 5.51% - September 13, 1995 CSDOC TOTAL CASH & INVESTMENT $500 $400 I! ~$300 'S • .tis200 E :E $100 $0 "'--...,.,_----,"'------,!----,<----+-------....,._----,..._--+-___, Dec 6 Dec 31 Jan 31 Feb 28 Mar 31 Apr 30 May 31 June 30 July 31 Aug. 31 J:IWPDOC\FINICRANEIFPC.MTGIFAHR.95UTEMITREASRPT.95 -(II - .,.., ) \ J I\ I FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR SEPTEMBER 13, 1995 ( 5) Consideration of Motion to Approve the Draft Finance, Administration and Human Resources Committee Meeting Minutes of July 12, 1995 Summary Attached is a draft of the Finance, Administration and Human Resources Committee meeting Minutes of July 12, 1995, for approval by the Committee. Staff Recommendation It is recommended that the minutes of the July 12, 1995, Finance, Administration and Human Resources Committee meeting be approved. These minutes were submitted to the Executive Committee at their July 19, 1995 meeting, and no further action is required. J:IWPOOOFINICRANEIFPC.MTGIFAHR.95\FAHR.MINICVRMFPC8.115 ) DRAFT County Sanitation Districts of Orange County, California P.O. Box 8127 • 10844 Ellis Avenue Fountain Valley, CA 92728-8127 Telephone: (714) 962-2411 MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Wednesday, July 12, 1995, 5:30 P.M. A meeting of the Finance, Administration and Human Resources Committee of the County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California was held on July 12, 1995 at 5:30 p.m., at the Districts' Administrative Offices. (1) ROLL CALL The roll was called and a quorum declared present, as follows: Committee Directors Present: John C. Cox, Jr., Joint Chairman George Brown, Chairman Burnie Dunlap James Flora John M. Gullixson Wally Linn Thomas Saltarelli Roger R. Stanton, Vice Chairman William G. Steiner Peer Swan Committee Directors Absent: Jan Debay Staff Present: Don McIntyre, General Manager Blake Anderson, Assistant General Manager Gary Streed, Director of Finance Ed Hodges, Director of Maintenance Bob Ooten, Director of Operations Mike White, Controller Steve Kozak, Financial Manager Others Present Tom Woodruff, General Counsel Rich Brown, Orange County Employees Assn. (2) APPOINTMENT OF A CHAIRMAN PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS No comments were made. (4) REPORTS OF THE COMMITTEE CHAIR. GENERAL MANAGER. ASSISTANT GENERAL MANAGER(S}, DIRECTOR OF FINANCE/TREASURER. DIRECTOR OF HUMAN RESOURCES AND GENERAL COUNSEL (a) Report of the Committee Chair George Brown, Chairman, had no report. Minutes of Finance, A( Page2 and Human Resources Committ,,.. " July 12, 1995 (b) (c) Report of the General Manager General Manager Don McIntyre reported on the status of pending recruitments for Laboratory Manager, Director of Engineering and Assistant General Manager for Administration. He requested that the proposed salary level of the Assistant General Manager be added to the agenda in order to have a Committee recommendation to the Boards. The Committee voted to add an emergency agenda item. Report of Assistant General Manager Assistant General Manager Blake Anderson updated the Committee on recent events regarding the County bankruptcy, including the OCIP Pool Committee meeting of ear1ier in the day. He reported on the interest allocation expected next week, the litigation strategy against Merrill Lynch et. al, the hearing before Judge Ryan scheduled for July 14, 1995, the reasons the OCIP Pool Committee opposed the "roll-over" agreement, pending bankruptcy related items in Sacramento and continuing discussions regarding the landfills. (d) Report of the Finance Director/Treasurer (e) (f) Finance DirectorfTreasurer Gary Streed reviewed the reports included with the agenda package updating the Committee on the status of the Districts' cash and investments. He further advised the Committee that the Districts' agreements with Pacific Investment Management Company, uPIMCO," to serve as Investment Manager, and Mellon Trust Company, to serve as Custodial Bank are being finalized, and that funds are expected to be transferred before month-end. Mr. Streed also reviewed the remarketing activities for the Series uA," Series uc," and Series "1993 Refunding" COPs, and the interest rate history for the past month. Report of the Director of Human Resources Gary Hasenstab, Director of Human Resources, reported that the Orange County District Attorney had recently notified the Districts that the case had been closed regarding any criminal negligence in the February 1994 fire at Plant 2 and that no negligence had been found. Report of General Counsel Thomas L. Woodruff, General Counsel, reviewed a report contained in the agenda package and requested that the Committee approve an adjustment in the fee schedule of his finn's Professional Services Agreement with the Districts. The Committee recommendation is reported as FAHR95-34 below. Minutes of Finance, Ad~nd Human Resources Committn Page 3 , , 1 July 12, 1995 (5) FINAL DRAFT REPORT OF THE ERNST & YOUNG FINANCE FUNCTIONAL REVIEW OF PURCHASING AND WAREHOUSING, ACCOUNTING AND FINANCE, AND INFORMATION SYSTEMS. This report will be presented to the Executive Committee at their meeting of July 19, 1995. There was no discussion regarding this item at the meeting. (6) APPROVAL OF MINUTES It was moved, seconded and duly carried to approve the draft minutes of the June 14, 1995, meeting of the Finance, Administration and Human Resources Committee. (7) OLD BUSINESS FAHR95-25 Classification, Compensation, and other Terms. Conditions. Rules and Regulations of Employment (8) Gary Hasenstab, Director of Human Resources, reviewed the Employee Benefit Program Summary. The Committee had requested an expanded summary which included examples and amounts. It was moved, seconded and duly carried to receive and file this report which is intended to be filed with the original report. NEW BUSINESS FAHR95-31 Consideration of Motion to Adopt Investment Performance Review Guidelines for the Districts' Investment Program After discussion on this matter, it was moved, seconded and duly carried to recommend that the Executive Committee approve the following actions: 1. Adopt the investment perfonnance benchmarks for the Liquid Operating Monies fund, the 3-month T-Bill rate and the Csllan Active cash Fixed-Income Style Group; and the Long-Tenn Operating Fund, the Merrill Lynch Government and Corporate 1 to 5-year Maturity Index and the Callan Defensive Fixed-Income Style Group, as recommended by staff. 2. Adopt the contents and frequency of routine investment performance reports to be reviewed by the Committee each month or quarter as recommended by staff. FAHR95-32 Consideration of Proposed Changes to the IRS-Approved Section 457 Deferred Compensation Plan as follows: (a) Consideration of Resolution No. 95-Approving First Amendment to Deferred Compensation Plan for Officers and Employees in Order to Permit Greater Flexibility in Plan Distribution Elections. Clarify Certain Provisions of the Plan. and Comply with Certain Recent Internal Revenue Service Interpretations. Minutes of Finance, A( Page4 and Human Resources CommilY · July 12, 1995 (b) Consideration of Resolution No. 95-Approving Amended Deferred Compensation Program for Management. Professional and Supervisory Employees. After discussion on this matter, it was moved, seconded and duly carried to recommend that the Executive Committee approve (a) the First Amendment to the CSDOC Deferred Compensation Plan which clarifies the Plan and incorporates I.R.S. changes at no cost to the Districts, and; (b) modifications to the Management, Professional and Supervisory Employees Deferred Compensation Program only to add those positions to the program that were approved as a part of the resolution of the former Confidential Unit last month. FAHR95-33 Consideration of Orange County Employees Association (OCEAl Grievance Concerning Side Letter Agreement After discussion on this matter, it was moved, seconded and duly carried to recommend that the grievance be denied on the basis that no group of employees did in fact receive a general increase in salary during the period of November 26, 1993, through November 23, 1996, higher than the negotiated increase received by the OCEA unit. FAHR95-34 Consideration of Amendment No. 13 re Agreement for Employment of General Counsel The Committee reported their high regard for the services rendered by Rourke, Woodruff & Spradlin over the past several years. After discussion of altemative methods to obtain legal services including the current privatizing, developing an in-house team and a mix of the two, the Committee recommended approval of Amendment No. 13 re Agreement for Employment of General Counsel, including an increase in hourly rates for Mr. Woodruff, Principals and Senior Associate, Associates and Paralegals; and future annual increases based upon the changes in an index. The Committee also directed staff and General Counsel to retum to a future meeting with a report regarding altemative methods to obtain legal services. (9) CLOSED SESSION There was no closed session required. (10) OTHER BUSINESS. IF ANY None. (11) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING The Committee requested two items be considered at future meetings: A) A review of altemative methods of obtaining legal services, 8) A review of total compensation for exempt employees. ' Minutes of Finance, Adrr· "\and Human Resources Committn Page 5 , July 12, 1995 (12) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND A STAFF REPORT None. (13) CONSIDERATION OF UPCOMING MEETING DATES AND ITEMS TO BE DISCUSSED AT THOSE MEETINGS The Committee will not meet in August, November and December 1995, as no Executive Committee meetings are scheduled, and no FAHR Committee recommendation could be carried to the respective Joint Board meetings. The next Committee meeting is scheduled for Wednesday, September 13, 1995. (15) ADJOURNMENT The meeting was adjoumed at 7:30 p.m. GGS:lc/jt J:\WPDOC\FIN\CRANEIMTG\FAHR.95\FAHR.MN'WAHR78.95 FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR SEPTEMBER 13, 1995 ( 6) Consideration of Excess Capacity Deferred Payment Agreements Summary: At the August 23, 1995, Joint Boards meeting, the Directors adopted an urgency ordinance allowing deferred payment agreements for excess capacity charges. After some discussion, the Directors referred the matter of an appropriate interest rate to the Finance Administration and Human Resources Committee. Resolution 88-61, adopted in 1988, authorizes deferred payment agreements with an Industrial Waster Permittee for amounts owed to the Districts up to $10,000. These agreements are not to exceed six months in term and are to carry an interest rate equal to "prime rate plus 2½%, • as set by the Bank of America, San Francisco, California. As of Thursday, September 6, 1995, the rate charg~d for such an agreement would be 8¾% plus 2½% = 11 ¼%. During the August Board meeting, Vice Joint Chairman Swan proposed an interest rate for these agreements equal to the rate for U.S. Treasury Bills, Notes or Bonds of a similar maturity. The ten-year Treasury Note interest rate as of September 6, 1995, was 6.17%. Staff Recommendation Staff is sensitive to the needs of our member cities to attract new business to the County, and to the impact of the excess capacity connection fees. In an initial effort to mitigate the impact, staff recommended deferred payments. For the Directors' future consideration, staff will be recommending a major overhaul of the excess capacity charge program and a change from a one-time, up-front fee, to an annual fee based upon actual use. In the meantime, staff recommends an interest rate for deferred excess capacity charge agreements equal to the rate charged on U.S. Treasury Bills or Notes of the closest maturity. This rate will essentially produce the same yield to the Districts as our investment program, and will not be overly harsh on the new business. J:\WPOOCIFlNICRANEIFPC.MTGIFAHRIISVTEM\AGOITM6.895 JOINT BOARDS OF DIRECTORS SUPPLEMENTAL AGENDA AUGUST 23, 1995 All Districts Agenda Item (14): Summary: Authorization to enable the staff of the County Sanitation Districts of Orange County to set up a payment plan for the collection of excess capacity charges. On May 24, 1995, the Board of Directors of each of the County Sanitation Districts of Orange County adopted an ordinance establishing excess capacity charges to provide sewer service applicable to any new connection or new user whose discharge is tributary to the Districts' sewerage system and whose average daily loading to the sewerage system exceeds one of the minimum levels of flow, suspended solids, and biochemical oxygen demand loading criteria. The application of this charge was effective July 1, 1995. Since July 1995, there have been six new users which intend to set-up textile or food processing operations within the Districts' service area whose discharges exceed the Districts' loading criteria. Therefore, these new users will be subject to excess capacity charges. Based on discussions with these facilities, it is believed that requiring excess capacity charges as one lump sum will make it financially difficult for these facilities to start their business in Orange County due to the up-front financial burden. Staff Recommendation: Staff therefore recommends consideration of a motion to authorize staff to set up a payment plan to be approved by the Districts' General Manager and Director of Finance, to allow the above-mentioned facilities and those having similar facts in the future, to pay their appropriate excess capacity charges over a period of time. Staff also recommends that the payment schedule include an interest rate sufficient to allow the Districts to obtain the present value of the applicable excess capacity charges. General Counsel has prepared an Urgency Ordinance to implement this reimbursement plan, if approved by the Boards of Directors. Counsel advises that it will be effective immediately upon adoption. August 23, 1995 STAFF REPORT Request for Authorization to Enable the Staff of the County Sanitation Districts of Orange County to Set Up a Payment Plan for the Collection of Excess Capacity Charges BACKGROUND On May 24, 1995, the Board of Directors of each of the County Sanitation Districts of Orange County adopted an Ordinance, effective July 1, 1995, establishing excess capacity charges to provide sewer service applicable to any new connection or new user whose discharge is tributary to the Districts' sewerage system and whose average daily loading to the sewerage system contains one of the following: Parameter Value Flow Suspended Solids (SS) 2!: 50,000 gallons per day (gpd) 2!: 105 lbs per day (lbs/d) Biochemical Oxygen Demand (BOD) 2:: 105 lbs per day (lbs/d) The Ordinance provides that the excess capacity charge shall be calculated based on the following formula: ECC = Where: (Flow, gpd)/399 gpd x Cf CC x 58% + (BOD, lbs/d)/0.83 lbs/d x CFCC x 19% + (SS, lbs/d)/0.83 lbs/d x CFCC x 23%. ECC is the excess capacity charge; and CFCC is the capital facilities connection charge. Since July 1995, there are six new users which intend to set-up textile or food processing operations within the Districts' service area whose discharges exceed the Districts' loading criteria stated above. Therefore, these new users will be subject to excess capacity charges. The projected excess capacity charges for the six applicants using the adopted formula are shown in the table below: CS DOC • P O Box 8127 • Fountain V;allev CA 92728-81:'7 • /714 \ 96?-7~ 11 Staff Report re Payment Plan for ECG Page 2 August 23, 1995 Proposed Company Flow, BOD, GPD Lbs/Day 1) Food Production 150,000 1,360 2) Textile Equipment 300,0001 751 1 & Printing 3) Fabric Dyeing & 400,000 1,668 Finishing 4) Yarn Dyeing & 200,000 1,334 Finishing 5) Fabric Printing & 300,000 2,502 Finishing 6) Fabric Dyeing & 500,000 1,668 Finishing 1 Estimated value TSS, City ECC,$ Lbs/Day 340 Garden Grove $1,465,430 751 1 Buena Park $1,917,868 334 Garden Grove $2,481,222 500 Fullerton $1,726,438 500 Garden Grove $2,696,370 417 Anaheim $2,876,876 The food operation (Company No. 1) has purchased 5.5 acres of land in the City of Garden Grove. The textile equipment and printing facility (Company No. 2) closed escrow on August 17, 1995, on the purchase of an existing building used as an assembly warehouse in the City of Buena Park. The fabric dyeing and finishing company (Company No. 6) has closed escrow on the purchase of an existing building in the City of Anaheim. The remaining three companies have proposed to start-up textile facilities in the cities of Garden Grove and Fullerton and are considering leasing of the facilities with an option to purchase. Based on discussions with these facilities, it is believed that requiring excess capacity charges to be paid in one lump sum would make it financially difficult for these facilities to start their business in Orange County due to the financial up-front burden. RECOMMENDATION Staff recommends consideration of a motion to authorize staff to set up a payment plan to be approved by the Districts' General Manager and Director of Finance to allow the above-mentioned facilities and facilities having similar facts in the future to pay their appropriate excess capacity charges over a period of time. Staff also recommends that the payment schedule include an interest rate sufficient to allow the Districts to obtain the present value of the applicable excess capacity charges. General Counsel has prepared an Urgency Ordinance to implement this reimbursement plan, if approved by the Boards of Directors. Counsel advises that it will be effective immediately upon adoption. MT:lvw J:\WP\3590\LAURIE\ECCSRPT ORDINANCE NO. AN ORDINANCE OF THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 1 OF ORANGE COUNTY, CALIFORNIA, RELATING TO PAYMENT OF EXCESS CAPACITY CHARGES WHEREAS, the Board of Directors of County Sanitation District No. 1 of Orange County, California ("District") has heretofore adopted Ordinance No. _, an Ordinance Establishing Wastewater Discharge Regulations for Use of District Sewerage Facilities; and WHEREAS, Section 309 of Ordinance No. _ was amended by the adoption of Ordinance No. _ by the Board of Directors, effective July 1, 1995, establishing the method for calculation of excess capacity charges; and WHEREAS, the Board of Directors has been advised that major industrial users of the District's system required to pay excess capacity charges are faced with significantly large charges that presently are required to be paid in a lump sum prior to the issuance of permits; and WHEREAS, the Board of Directors has determined that a fair and equitable method by which the excess capacity charges are paid so as to minimize the financial burden upon the users would be to establish a program for the scheduled payment over a period of time; and WHEREAS, the Board of Directors has determined that there are a number of pending developments for the establishment of new major industrial facilities throughout the District's service area, whose ability to proceed is dependent upon a scheduled time payment for the District's excess capacity charges. 1 f' NOW, THEREFORE, the Board of Directors of County Sanitation District No. 1 of Orange County, California, DOES HEREBY ORDAIN AS FOLLOWS: Section I: Section 309.5 is hereby added to Ordinance No. _ to read: "Section 309.5. Excess Capacity Charge -Deferred Payment Schedules. Applicants for a permit to connect to the District's facilities which require the payment of excess capacity charges as provided in Section 309.1, may separately apply and request that the payment of the excess capacity charge be deferred in accordance with the terms and conditions of the District's standard agreement for deferred payment. Said agreement shall provide for payment over a period not to exceed ten (10) years and shall include, in addition to the basic charge, interest at a rate equal to that which is sufficient to provide to the District the present value of the applicable excess capacity charges as of the date of permit issuance. Said agreement shall be approved by the District's General Manager and Director of Finance, and shall be approved as to form by District's General Counsel." Section II: This Ordinance is enacted as an Urgency Ordinance, in order to allow for the immediate issuance of waste discharge permits to pending applicants for development and connection. In the absence of doing so, the developments may be unable to proceed, thus resulting in the immediate loss of significant numbers of employment opportunities and financial loss to the business developer. 2 \ I Section Ill: The Secretary of the Board of Directors shall certify to the adoption of this Ordinance and shall cause the same to be published in a newspaper of general circulation in the District as required by law. PASSED AND ADOPTED at a regular meeting held August 23, 1995. 3 ,, • I .,, ,.,--=-,,.,_ ) FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR95-35: Summary: AGENDA FOR SEPTEMBER 13, 1995 Consideration of Motion to Receive and File Quarterly Staff Summary Report of Training and Travel Costs for the Quarter Ended June 31, 1995 Beginning in 1993-94, the Joint Boards asked this Committee to review a staff report summarizing training and travel expenses each quarter. Accordingly, the report for the quarter ended June 30, 1995, is attached. Actual training, travel and meeting expenses chargeable to the Joint Operating fund were 89% of the 1994-95 budget allocation of $250,000. Travel to inspect equipment fabrication for a capital project and the initial training required for a new facility may be appropriately capitalized and charged to that project. Such costs are paid through the respective cap,tal fund, generally the Capital Outlay Revolving Fund (CORF). In order to fully report to the Committee, these charges have been captured and are included in the report. For this reason, the costs in this report will not be the same as those in the Joint Operating Fund. Staff Recommendation Monitoring training and travel costs has been delegated to the Finance, Administration and Human Resources Committee and no Executive Committee action will be required. J:\WPOOC\FIN\CRANBFPC.MTGIFAHR.95VTEMIFAHR95.35 917195( )ag~1 1 \ - TRAINING, TRAVEL AND MEETING SUMMARY Year Ended June 30, 1995 Number Of Beg End Local Travel, Room Supplies Ref Event or Description Attendees ~ ~ Date Meetings Registration & Per Diem & Other Total Costs Location Divisions Nine Months Charges to 3/31/95 $4,749.13 $78.072.65 $67.828.34 $150.650.12 2 PDC Comm Plant Tour w/ OCWD 1 3/11 $48.60 $48.60 CSDOC Directors' Committee 3 Special Board Meeting, OCIP 1 3/29 $35.29 $35.29 CSDOC Directors' Committee 4 OMTS Committee 1 4/05 $66.67 $66.67 CSDOC Directors' Committee 5 Fin, Adm, HR Committee 1 4/12 $63.73 $63. 73 CS DOC Directors" Comrr 6 Executive Committee 1 4/19 $57.48 $57.48 CSDOC Directors' Coml\ 7 Steering Committee 1 4/26 $74.51 $74.51 CSDOC Directors" Committee 8 Ad Hoc Space Plan Committee 1 4/28 $35.29 $35.29 CSDOC Directors' Committee 9 OMTS Committee & PDC Committee 2 5/03 5/04 $125.36 $125.36 CSDOC Directors' Committee 10 Fin, Adm, HR Committee 1 5/10 $76.55 $76.55 CSDOC Directors' Committee 11 Executive Commitee 1 5/17 $61.32 $61.32 CSDOC Directors' Committee 12 Steering Committee 1 5/24 $69.06 $69.06 CSDOC Directors' Committee 13 PDC Committee , 6/01 $81.70 $81.70 CSDOC Directors' Committee 14 Director Orientation & Plant Tour 1 6/03 $99.66 $99.66 CSDOC Directors" Committee 15 OMTS Committee 1 6/07 $76.77 $76. 77 CSDOC Directors' Committee 16 Fin, Adm, HR Committee , 6/14 $56.27 $56.27 CSDOC Directors' Committee 17 Director Orientation & Plant Tour 1 6/17 $118.38 $118.38 CSDOC Directors' Committee 18 Executive Committee 1 6/21 $94.22 $94.22 CSDOC Directors' Committee 19 Steering Committee 1 6/28 $31.57 $31.57 CSDOC Directors' Committee 20 OMTS Committee 1 7/05 $113.07 $113.07 CSDOC Directors" Committee 21 PDC Committee Mtg. 1 7/06 $83.66 $83.66 CSDOC Directors" Commi' 22 CASA Lesgislative Committee 1 1 4/21 $312.00 $312.00 Sacramento General Manager 23 CASA & Tri TAC Spring Work Conference 4 4 5/11 5/13 $480.00 $2,231.74 $2,711.74 Sacramento Mgt & Directors 24 AMSA 95 Environmental Forum 2 4 5/20 5/24 $1,575.00 $2,744.24 $4,319.24 Wash., D.C. General Manager 25 AMSA and EPA Meeting 1 2 6/03 6/05 $99.64 $99.64 N. Carolina Technical Services 26 AMSA Legislative Session 1 4 6/28 7/02 $1,379.14 $1,379.14 Wash., D.C. Genl Mgr, Tech Serv 27 AMSA Summer Tech Cont. 1 4 7/18 7/22 $425.00 $981.50 $1,406.50 Rhode Island Technical Services 28 WEF / AWWA Cont. 1 3 7/23 7/26 $262.00 $262.00 Missouri Cons, Recycle & Reuse 29 WEF 68th Annual Cont. 1 5 10/20 10/25 $395.00 $485.00 $880.00 Florida Technical Services TRV4QTR.XLS 1:36 PM 9/7/95 Page 2 TRAINING, TRAVEL ANO MEETING SUMMARY Year Ended June 30, 1995 Number Of Beg End Local Travel, Room Supplies Bfil Event or Description Attendees ~ Date ~ Meetings Registration & Per Diem .&....illher Total Costs ~ Divisions 30 General Manager Meeting Reimb for March 23 3/08 $130.40 $130.40 Various General Manager 31 General Manager Meeting Reimb for April 30 4/01 $148.39 $148.39 Various General Manager 32 General Manager Meeting Reimb for May 30 5/01 $498.50 $498.50 Various General Manager 33 General Manager Meeting Reimb for June 1 6/28 $20.00 $20.00 Ftn Valley General Manager · 34 AGM-Adimin Recruiter Meeting , 1 6/15 6/16 $244.77 $244.77 Oakland General Manage 35 Director of Tech. Services Recruit Costs 1 3 6/17 6/30 $984.38 $984.38 Ftn Valley General Manager 36 AGM Interview Panel Lunch 1 7/06 $23.94 $23.94 CSDOC General Manager 37 Investment Policy Meeting , 5/02 $39.70 $39.70 Newport Bch . Finance 38 Investment Manager Selection. 1 5/22 $30.36 $30.36 CSDOC General Manager 39 S.E.C. Bond Disclosure Seminar 1 1 5/24 $25.00 $25.00 Newport Bch Finance 40 Seminar on Privatization 1 1 6/09 $125.00 $25.20 $150.20 Industry Hills Finance 41 Harassment Awareness Training All 1 4/26 $11,976.89 $11,976.89 CSDOC Human Resources 42 Developing & Writing Accounting Procedures 2 1 5/16 $278.00 $278.00 Anaheim Accounting 43 Word Perfect & Excel Training Tapes $157.65 $157.65 CSDOC Information Services 44 Pathworks V5 -Arch & Lan Mnst. 2 3 5/30 6/02 $5,180.00 $5,180.00 L.A. Information Services 45 RJN Eng . & Info. Tech Cont. 1995 2 3 6/06 6/09 $1,408.14 $1,408.14 Chicago Info Serv, lnstrum.,.~tat 46 lnternetworking Bridges & Routers 1 3 6/13 6/16 $1,995.00 $131.00 $2,126.00 San Diego Information Ser 47 Oracle Class, Tune & Troubleshoot Network 1 2 6/22 6/23 $48.00 $48.00 Irvine Information Servk. 48 ISLUA Cont. 1995 Northern Telecom 1 4 6/26 6/30 $525.00 $948.95 $1,473.95 Atlanta Information Services 49 Managing IT in Southern California 1 1 6/28 $75.00 $18.00 $93.00 Long Bch. Information Services 50 Entronic FT 100/210 Training 1 4 7/17 7/21 $366.00 $366.00 Ohio Information Services 51 lnternetworking w/MS TCP/IP On Windows 4 2 7/25 7/28 $6,780.00 $6,780.00 L.A. Information Services 52 HRIS Database Colluquin 1995 1 2 8/28 8/30 $290.00 $290.00 San Diego Human Resources 53 Excel 5.0 Wins / Customized for Lotus Users 40 $2,000.00 $2,000.00 CSDOC Operations & Mtce 54 CRISP 32 Plant Auto Software Training 2 12 6/19 6/30 $5,830.67 $5,830.67 No. Carolina Plant Automation 55 Software Training 1 5 2/06 2/10 $35.00 $35.00 L.A. Plant Automation TRV41...,_ . ,.XLS 1:36 r-M 9l7l9f page'} \ I TRAINING, TRAVEL AND MEETING SUMMARY Year Ended June 30, 1995 Number Of Beg End Local Travel, Room Supplies Bfil Event or Description Attendees Q_g_ys Date Q_g_t_e_ Meetings Registration & Per Diem .&...Qthfil Total Costs l..o..rni..on Divisions 56 Forklift Training 22 1 4/11 $750.00 $750.00 CSDOC Coll, Mech, Elect, Mtc 57 Parking -Hazardous Materials 2 1 4/11 4/11 $12.00 $12.00 Anaheim Mtce, HR 58 Training -Haz Mat 1st Response 1 3 3/27 3/30 $50.00 $50.00 CSDOC Human Resources 59 Training Implementation Guidlines 1 1 4/12 $4,358.00 $4,358.00 CSDOC Human Resource~ . __ ,, ' 60 Towards A Sustainable Future 1 1 4/18 $30.00 $30.00 L.A. Tech Services ) 61 CWPCA Annual Technical Cont 3 1 4/19 4/20 $762.67 $762.67 Palm Springs Laboratory ·•-..... 62 S.S.O. Design Conference 1 4 4/22 4/26 $411.00 $411 .00 Wash. DC Design Engineering 63 How to Manage Multiple Projects 1 1 5/03 $99.00 $139.91 $238.91 Anaheim Compliance 64 Academy of Sciences Annual Meeting 1 1 5/06 25.00 $25.00 Fullerton Laboratory 65 Parking Reimb: SCAQMD Meeting 1 1 5/11 $10.40 $ 10.40 Anaheim Human Resources 66 Parking & Mileage Reimb: SCAQMD Mtg. 1 1 5/12 $16.80 $16.80 Diamond Bar Air Quality 67 Microbiology Conference 3 4 5/21 5/25 $250.00 $1,889.45 $2,139.45 Wash., D.C. Laboratory 68 Diffuser Technology Work Shop 1 1 6/01 $4.00 $4.00 Long Beach Compliance 69 CWEA Biosolids for the environment 2 1 6/07 6/08 $350.00 $1,176.57 $1,526.57 San Ramon GM, Cons, Recycle & 70 Management Seminar 1 1 6/09 $5.00 $5.00 Anaheim Compliance 71 East Bay Metro Utility Benchmarking 1 2 6/15 6/16 $141 .00 $141 .00 Oakland General Manager 72 How to Manage Proj, Priorities & Deadlines 1 1 6/16 $5.00 $5.00 Anaheim Technical Services 73 AWMA 88th Annual Mtg. & Exhibit 2 5 6/17 6/22 $2,182.02 $2,182.02 Texas Air Quality 74 Creative Problem Solving 1 5 6/19 6/23 $720.00 $1,061.00 $1,781.00 New York Human Resources 75 Managing Unacceptable Behavior 1 1 6/22 $139.00 $139.00 Anaheim General Manager 76 TCP Prep Class CWEA Certification 10 1 6/24 $100.00 ---, $100.00 Irvine Source Control ~ 77 The Color of Water Reclamation 1 1 6/29 $45.00 $45.00 Laguna Hills General Manager ", / 78 Effective Maint. Planning & Scheduling 2 1 7/11 7/12 $1,590.00 $1,590.00 San Fransisco Electrical Mtce 79 Sacramento Treatment Plant Benchmarking 1 1 7/20 $353.00 $353.00 Sacramento Gen Mgr, Dir Oper 80 Executive Leadership Fall '95 2 1 7/21 $750.00 $750.00 Laguna Hills General Manager 81 Performance Management Systems 1 2 9/11 9/13 $695.00 $695.00 Irvine Human Resources 82 Mileage: RAPC & Air Quality Summit Mtgs 1 2 2/95 3/95 $28.65 $28.65 La Habra Air Quality 83 Confined Space Training Tapes ~1,280.07 $1,280.07 Electrical Mtce. 84 Water Env Fed 68th Annual Conf. 1 4 10/21 10/25 $395.00 $395.00 Florida Planning & Design 85 Intro to National Electrical Code 5 2 6/29 6/30 $2,335.00 $154.80 $2,489.80 Ontario Construction Managem 86 Diffuser Technology Work Shop 1 1 6/03 $4.00 $4.00 Long Beach Planning & Design 87 Variable Freq. Drive On-Site Inspection 1 6 4/19 4/14 $1,684.85 $1,684.85 Texas Construction Mgt 88 Amer Society of Microbiologists Conf 2 5 5/21 5/25 $893.60 $893.60 Wash, D.C. Laboratory TRV4QTR.XLS 1:36 PM 9(7/95 &.f Event or Description 89 90 91 92 93 94 95 Cancel Prepaid Registration, Environ Conf Travel Expense Reimb. from Employee Employee Mileage Reimb Parking & Gasoline Reimb Emergency Over Time Dinners Industrial Waste Surveillance Parking: Mtg with EPA & District Attorney Total Charges This Quarter Total Charges Year to Date TRV4-, ,.XLS TRAINING, TRAVEL AND MEETING SUMMARY Number Of Beg End Attendees ~ D.file. D.file. 2/22 1 5/19 1 5/08 4 1 6/08 6/95 1 1 3/30 Year Ended June 30, 1995 Local Meetings $17 884.41 $22,633.54 Registration ($65.00) $28 356 00 $106,428.65 Travel, Room & Per Diem ($147.861 $5.40 $13.00 $22.75 $157.50 $3.00 $30 245.90 $96,074.24 Supplies .&..illhfil $1 577 63 '$1,577.63 Total Costs ~ ($65.00) ($147.86) $5.40 Santa Ana $13.00 Orange Co $22. 75 CS DOC $157.50 Anaheim $3.00 Santa Ana $78 063,94 $228,714.06 Page4 Divisions 0 Air Quality 0 Human Resources Accounting Air Quality Plant Mtce. Source Control Source Control ---1:36 P'i! FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR95-36: Summary: AGENDA FOR SEPTEMBER 13, 1995 Consideration of Motion to recommend approval of extension of Real Property Lease, Plant No. 1, Lease No. L-009-1 with lessee, First Bank of California In August 1984, after a competitive bidding process, the Boards approved a fifteen year lease agreement for approximately 20 acres of the southwest comer of Plant No. 1 near the intersection of Garfield Avenue and Ward. A storage facility has been operated on the premises subsequent to the agreement. During 1994, the original tenant, American Balboa Properties, went through bankruptcy proceedings and their lease interest, which was security for a loan, was foreclosed by First Federal Bank of California. Since then, General Counsel and staff have been working together and negotiating with the bank to arrive at a mutually satisfactory revision to the lease. The attached memorandum from General Counsel, which summarizes the lease terms, was reviewed by the Joint Boards at their August 23, 1995 meeting, but no formal action was taken. The significant lease terms are as follows: • Effective as of September 1, 1995 • Term of three (3) years • Minimum annual cost of $60,000 (a 20% increase) • Maximum annual cost of 10% of gross • Bank responsible for removal of certain site improvements Staff Recommendation Staff recommends the FAHR Committee recommend approval to the Executive Committee of the extension of Real Property Lease, Plant No. 1, Lease No. L-009-1 with First Federal Bank of California. J:\WPOOC\FINICRANEIFPC.MTGIFAHR.95VlcMIFAHRll5.36 ,, LAW OFFICES OF ROURKE, WOODRUFF & SPRADLIN A. PROFESSIONAL CORPORATION 0: FROM: DATE: RE: INFOIIMATIOH ONLV • NO ACTl0H REQUIRED TO BE ACTED UPON BV FAHl'I COMMITTEE ON SEPTEMBEl'l 20, 11115; JOINT BOARDS aEPTEMBER 27, 11115 MEMORANDUM Joint Chairman and Members of Boards of Directors County Sanitation Districts General Counsel August 23, 1995 Real Property Lease, Plant No. 1, Lease No. L-009-1 Lessee: First Federal Bank of California I wish to bring to your attention that after several months of negotiating with First Federal Bank of California, we have successfully reached agreement as to the terms and conditions for the lease of the approximate 20 acres of land located at the southerly portion of Plant No. 1 near the intersection of Garfield Avenue and Ward Street. This property was initially leased and developed by a firm known as American Balboa Properties, that constructed stor-all units and also allowed for open storage of vehicles, boats, recreational vehicles, etc. American Balboa Properties defaulted on the lease and ultimately went into bankruptcy, and their assets were taken over by First Federal Bank of California. First Federal has wanted a lengthy term of lease, to wit: 15 years, but the Districts' Staff believes the need for the property would occur much sooner than that, and we have agreed on a 3-year tenn. In the event the Districts determine at that time that a further lease term is in accordance with the Districts' needs, First Federal would have a right of first refusal for any additional time. We have negotiated an increase in the lease from a $50,000.00 to $60,000.00 minimum annual payment, and also providing for the Bank to be responsible for payment of costs of removal of certain site improvements, such as paving and underground utilities. This information is brought to your attention in view of the fact that we have negotiated the lease to be effective as of September 1, 1995. It was our desire to have the rent commence at the earliest possible date, and the Bank is aware that this needs to yet be reviewed and approved by the Boards of Directors, and have agreed to the effective date being established at a prior time. The matter is scheduled for review and consideration by the FAHR Committee on September 20th and by the Joint Boards on Sept ber 27th. . p ~~~ THOMAS LOODRUFF -~/ TLW:pj GENERAL COUNSEL FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR95-37: Summary: AGENDA FOR SEPTEMBER 13, 1995 Consideration of Motion to receive and file Ernst & Young Finance Function Review Quarterly Status Matrix The final report on the Finance Function Review by Ernst & Young was presented to the Executive Committee in July. The Review includes the functions of Purchasing and Warehousing, Accounting and Finance, and Information Services. Attached is the initial Status Matrix prepared by staff for the FAHR Committee to review and to monitor progress. Staff proposes to submit this report, or some variation that meets the Directors' needs, on a quarterly basis. Staff Recommendation Receive and file staff report, and direct staff to continue to report on a quarterly basis. J:\WPOOCIFINICRANEIFPC.MTGIFAHR.95VTEMIFAHR95.37 1. 2. 3. 4. 5. 6. 7. 8. 9. __, September 13, )5 __ j FINANCE, ADMINISTRATION & HUMAN RESOURCES COMMITTEE STATUS MATRIX ERNST & YOUNG FINANCE FUNCTION REVIEW INFORMATION TECHNOLOGY Develop a Charter, Mission and Vision for lnfonnatlon Systems. Finalize the RFP for the Strategic System lnfonnatlon Plan (SISP). Perfonn the SISP study. Review staffing and organization needs based on charter and SISP. Develop standards for all PC's and software products. Develop a plan to and Introduce the standards over a period of time to minimize disruption, maximize investment, and allow training. Survey users to detennine the need for and costs and benefits of infonnation technology training. Study impact of NT File Server. Implement NT File Server. 10/1/95 I Several drafts have been prepared and reviewed by staff. 12/1/95 I A preliminary outline has been prepared. The final draft will be reviewed by outside experts. 3/96 Start- up -1- This will begin when SISP Is completed. Ongoing I PC purchases are limited to the Gartner group "Tier 1 and 2" suppliers. Alternative procurement methods Including leases, and a help desk service are being evaluated. 1/1/96 I WIii be completed in conjunction with new training staff In Human Resources currently being recruited. 9/1/95 I Completed. 3/1/96 I Implementation will be phased. "\ ) September 13, 1995 FINANCE, ADMINISTRATION & HUMAN RESOURCES COMMITTEE STATUS MATRIX ERNST & YOUNG FINANCE FUNCTION REVIEW FINANCE & ACCOUNTING 1. Select and Implement New Financial Information System. 9/30/97 Deloitte & Touche preparing revised RFP 2. Develop and Maintain Standard Financial Policies and Procedures. 3. Improve Monthly Accounting Close Cycle Times. 4. Improve Budget Process and Organizational Focus. 5. Improve Payroll Process. 8. Outsource Deferred Compensation Plan (457). 7. Update Cost Allocation Plan. 8. Develop Internal Audit Program. 9. Improve Fixed Assets Process. 10. Eliminate Large Petty Cash Fund. 11. Improve User Billing Process. 1/31/96 I Assembled copies of current policies & procedures to date. Revisions are underway. 11/30/95 I Will streamline as much as possible. Should get to within 5 working days when new F.I.S. Is In place. 5/31/96 I Will move forward with the hiring of the new Analyst positions being recruited currently. 8/30/96 I Coordinate along with selection and Implementation of F.I.S. Payroll moved to Accounting July 95. 10/31/95 I In negotiations with Lincoln National. 8/30/96 I Preparing to use external consultant such as David M. Griffith & Assoc. 6/30/96 I Coordinate with AGM-Admin.; may outsource. 2/28/96 I Identifying specific fixed asset problems, road blocks and solutions. 9/30/95 I Need to set up new procedures on emergency cash disbursements to replace petty cash checks. 3/31/96 I Have begun to move several commercial accounts to actual billing. - September 13, )5 FINANCE, ADMINISTRATION & HUMAN RESOURCES COMMITTEE STATUS MATRIX ERNST & YOUNG FINANCE FUNCTION REVIEW PURCHASING & WAREHOUSING 1. Implement and Maintain a Formal Supplier Rating Program. 2. Align Buyers with Inventory Classes. 3. utilize Blanket Purchase Orders for Inventoried Items. 4. Increase Formal Bid Threshold. 5. Implement and Report Key Purchasing Performance Metrics. 6. Contract with Suppliers of Low Cost Stock Items to Maintain Bins at Point of Usage. 7. Categorize Inventory by ABC Classes. 8. Initiate a Cycle Counting Program to Measure/Maintain Inventory Accuracy. 9. Review Requirement for Expanded Plant 2 Warehouse. 10. Aggressively Pursue Reduction of Excess and Obsolete Inventory. 11. Develop and Implement a Data Retention/Maintenance Procedure. 12. Generate ABC, Excess Inventory and Obsolete Inventory Management Reports. 13. Implement and Report Key Warehousing Performance Metrics. 14. Select and Implement New Finance System (Inventory and Purchasing). -3- 12/95 I In process to analyze off-the-shelf PC software package. Ongoing I This Is and has been In effect. 7/96 I Current F.I.S. does not support this. 6/95 I Board action threshold raised to $50,000 3/96 I Purchasing team and management developing metrics and methods. 2/96 I In process of eliminating low cost general hardware from Inventory. 12/95 I Collecting historical Inventory data needed. 1/96 I This will be applied after ABC items are identified. 9/95 I Engineering Dept. reviewing alternatives. Ongoing I Need cooperation with other departments to record expenses. 10/95 I Underway. Changes made to current F.I.S. Ongoing I Accumulating ABC data, nonmoving Inventory reports issued. 12/96 I Warehousing team and management developing metrics and methods. 6/96 I See Accounting Division, item 1. (13) Upcoming Meetings FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (13) Summary AGENDA FOR SEPTEMBER 13, 1995 Consideration of upcoming meetings and items to be discussed at those meeting. The calendar of future meetings is on the back of the Notice of Meeting each month. The next Finance, Administration and Human Resources Committee meeting is scheduled for Wednesday, October 11, 1995. Some of the potential major non-routine items the Committee will be reviewing, considering and acting on over the next few months follow. Some items will carry forward to future months, but are listed only once at the start of a process. MONTH ITEM OCTOBER Employee Handbook Financial Information System Request for Proposals Independent Financial Audit Report for 1994-95 1994-95 Management Letter First Quarter 1995-96 Budget Review NOVEMBER As there is no Executive Committee meeting scheduled in November, the FAHR Committee is likewise not scheduled. DECEMBER As there is no Executive Committee meeting scheduled in December, the FAHR Committee is likewise not scheduled. JANUARY Review of legal service options. Review of total compensation package. Consideration of financial Advisor services. Staff Recommendation Information only item. J:\WPOOC\FINICRANEIFPC.MTGIFAHR85\ITEM\AGDITM13.985