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Home My WebLink About1995-10-11,., FILED in the Office of the Secrata, CountY. Sanitation Oistric,(s) . :-Jo(s) Z;J,. ':?,,. r; 1, .. , '01413 ti'/ OCT 251995 ( DRAFT County Sanitation Districts of Orange County, California P.O. Box 8127 • 10844 Ellis Avenue Fountain Valley, CA 92728-8127 Telephone: (714) 962-2411 By //K. ' MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Wednesday. October 11. 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 October 11, 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 James Flora John M. Gullixson Wally Linn Thomas Saltarelli Peer Swan Committee Directors Absent John C. Cox, Jr., Joint Chairman Burnie Dunlap Roger R. Stanton, Vice Chairman William G. Steiner Staff Present: Donald F. McIntyre, General Manager Judith A. Wilson, Assistant General Manager Gary G. Streed, Director of Finance Ed Hodges, Director of Maintenance Bob Ooten, Director of Operations Gary Hasenstab, Director of Human Resources Steven J. Hovey, Director of Information Tech. Michael D. White, Controller Stephen V. Kozak, Financial Manager Others Present: Terry Andrus, General Counsel (2) APPOINTMENT OF A CHAIRMAN PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS No comments were made. •' Minutes of Finance, Ad Page 2 October 11 , 1 995 nd Human Resources Committe (4) REPORTS OF THE COMMITTEE CHAIR. GENERAL MANAGER, ASSISTANT GENERAL MANAGER(S), DIRECTOR OF FINANCE/TREASURER, DIRECTOR OF HUMAN RESOURCES, DIRECTOR OF INFORMATION TECHNOLOGY AND GENERAL COUNSEL (a) Report of the Committee Chair The Chairman had no report. (b) Report of the General Manager The General Manager, Donald F. McIntyre, reported that he was becoming concerned about recent policy papers from taxpayer associations regarding user fees, asserting that the fees are taxes if they are mandatory and not discretionary. User fees for waste water treatment could be challenged under this theory. (c) Report of Assistant General Manager -Operations No report. Report of Assistant General Manager -Administration Judy Wilson had no report. (d) Report of the Director of Finance/Treasurer (1) 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. Mr. Streed noted that the variable rates rose slightly at the end of September due to historical quarter-end fluctuations. The rates declined to prior levels at the beginning of October. Staff will continue to keep the Committee fully informed about developments in the program as they occur each month. (2) 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. Mr. Streed advised that $233.1 million was placed in the long-term portfolio and $60 million went into the short-term portfolio. September was, therefore, a transitional or structuring month. The first PIMCO report was discussed as item FAHR 95-41. Minutes of Finance, Ad Page 3 nd Human Resources Committe~ 1 October 11 , 1995 (e) (f) Report of the Director of Human Resources Gary Hasenstab had no report. Report of the Director of Information Technology The Director of Information Technology, Steve Hovey, had no report. (g) Report of General Counsel Terry Andrus had no report. (5) APPROVAL OF MINUTES It was moved, seconded and duly carried to approve the draft minutes of the October 11, 1995, meeting of the Finance, Administration and Human Resources Committee. (6) Consideration of OMTS95-041 -Compressed Natural Gas (CNG) Refueling Station Ed Hodges, Director of Maintenance, gave a brief presentation detailing the costs associated with the operation of a Compressed Natural Gas refueling station. After discussion on this item, it was moved, seconded and duly carried to recommend the Executive Committee approve the Compressed Natural Gas (CNG) Refueling Station project; authorize staff to loan reserve funds to build the station; and create an enterprise account for this project. The staff was requested to report on the results at least annually. (7) OLD BUSINESS FPC95-13 Consideration of motion to approve reimbursement of participants' deferred compensation contributions. Assistant General Manager Judy Wilson reviewed the history of the Districts' deferred compensation plan and the funds that were held at the Orange County Treasury from 1975 until 1995. She noted that these funds were included in the OCIP failure. In January 1995, the County Board of Supervisors established pay-out limits for all participants in the OCIP. County employees were given a 90% payout of their deferred compensation balances; however, the Districts' deferred compensation participants were only given an 80% pay-out, treating them the same as the balance of the OCIP investors. $933,335.96 is still outstanding for the Districts' deferred compensation participants. The CSDOC group was the only non-County group of participants whose deferred Minutes of Finance, Ad Page4 October 11, 1995 d Human Resources Committe compensation plan was administered and segregated at the County at the time of the bankruptcy. After discussion on this matter, is it was moved, seconded and duly carried to recommend approval to the Executive Committee of the following three-point resolution: A. Deposit $311,119 of the loss for the next three years with Lincoln National Insurance Plan. 8. Do not provide an "interest earnings" adjustment. C. Distributions from the Bankruptcy Court on behalf of the Deferred Compensation Plan will reimburse the Districts, to the extent that they are available. Director Gullixson opposed the motion. FAHR95-25 Consideration of motion to approve revision of Resolution No. 95-54 Pertaining to Classification. Compensation. and Other Terms. Conditions. Rules and Regulations of Employment. Resolution No. 95-54 was adopted by the Boards on May 24, 1995. Gary Hasenstab, Director of Human Resources, advised that staff and General Counsel have reviewed Resolution No. 95-54 and are proposing amendments to reflect staffing changes in the 1995-96 approved budget, changes in legislation and labor practice, and policy statements which more accurately portray Districts' managements' new direction. After a brief discussion on this matter, it was moved, seconded and duly carried to recommend adoption of Resolution No. 95-_ on the basis that there are no substantive changes in the level or cost of entitlements over previously adopted resolutions, that liability insurance required of Executive Management will be increased and a waiver provision be included to all the Districts to hire former employees employed by outside firms within 12 months of their employment with the Districts if it is in the best interest of the agency. The waiver would require approval of the FAHR Committee. (8) NEW BUSINESS FAHR95-38 Consideration of motion approving authorization tor staff to solicit bids for Phase Ill and IV F.I.S. Consultant and Acceptance of F.I.S. RFP prepared by Deloitte & Touche. Mike White, Controller, advised that the Ernst & Young report of July 1995, on the Finance Function Review, recommended a number of enhancements to the RFP prepared by the consulting firm of Deloitte &Touche for the acquisition and Minutes of Finance, Ad Page 5 October 11, 1995 d Human Resources Committe installation of a new financial information system within the Districts' Finance Department. Those enhancements included: Additional functionality requirements in the area of Project Accounting and Cashiering; expanded functionality in the Contracts Subsystem area; and functionality requirements for the Human Resources application. The RFP for a new Financial Information System (FIS) is now complete. After discussion on this matter, it was moved, seconded and duly carried to approve the following staff recommendations: 1. Direct staff to solicit bids for a professional consulting agreement for the completion of Phase Ill, Selection Process for Hardware and Software, and Phase IV, Implementation and Acceptance of the Selected Hardware and Software Solutions for the Financial Information System project 2. Approve for release the Request For Proposal for a Financial Information System. Distribution of the RFP will be made to appropriate vendors as identified by the selected professional consulting firm hired to complete Phases Ill and IV. FAHR95-39 Consideration of motion to receive and file staff report regarding monitoring of the Local Agency Investment Fund. Steve Kozak, Financial Manager, in response to the Committee's request at their September meeting, reported on the Districts' investments with the California Local Agency Investment Fund (LAIF). He reviewed LAIF's composition and oversight committee structure, the current status of LAIF Investments; and the reports available to the Districts for continual monitoring. After discussion on this matter, it was moved, seconded and duly carried to receive and file this report. FAHR95-40 Consideration of motion to change the "Agreement for Purchase and Sale of Capacity Rights in Treatment. Disposal and Sewer Facilities" between County Sanitation District No. 14 and the other County Sanitation Districts of Orange County. Assistant General Manager Judy Wilson updated the Committee on the status of the IRWD's Wetland Water Supply Project which proposes to divert a significant portion of its flow to the duck ponds from October 21 through March 31. If the Regional Water Quality Control Board approves the plan, the flow could be diverted as early as January 1996. Removal of this flow from the CSD system could have a significant impact on each of the Districts. Minutes of Finance, Ad Page6 October 11, 1995 d Human Resources Committe(..___ After discussion on this matter, it was moved, seconded and duly carried to affirm the Executive Committee's direction to negotiate a change to the 1986 "Agreement for Purchase and Sale of Capacity Rights in Treatment, Disposal and Sewer Facilities," so that the District No. 14 annual flow is based upon the actual average flow per day for the four highest months, in order to provide capacity for higher winter months flows. Directors Swan, Saltarelli and Debay abstained from the vote. FAHR95-41 Consideration of motion to receive and file monthly investment report and staff report regarding performance monitoring of Pacific Investment Management Company. Steve Kozak reported on the performance of Pacific Investment Management Company. He advised that during the month of September, PIMCO completed approximately 75 transactions, purchasing and selling securities to properly structure the Districts' two investment portfolios in accordance with the Districts' Investment Policy Statement. He advised monthly reports will be available from PIMCO to the Districts after the fifth business day following the end of the preceding month. Monthly bank statements from Mellon Trust, detailing portfolio transactions and account balances, will also be available to the Districts. The Districts' Investment Advisor, Callan Associates will prepare and present to the Committee Quarterly Performance Reports. After discussion on this matter, it was moved, seconded and duly carried to receive and file this report. FAHR95-42 Consideration of motion to approve staff recommendations re microcomputer acquisition issues (Specification No. E-261). Steve Hovey, Director of Information Technology, gave an overview of the microcomputer acquisition issues. At the July 6, 1995 meeting of the Planning, Design and Construction Committee, item PDC95-24 "Discussion of Plant Automation Computer System and Consideration of Motion Authorizing Staff to Issue Purchase Order with Pioneer-Standard Electronics for Two VAX 4000 Model 705A Computers for Plant 2 Plant Automation", was presented to the Committee. This proposal included the purchase of 32 DEC Pentium Personal Computers for Operations at both plants. The Committee authorized staff to proceed with the purchase of the Two VAX 4000 Computers for Plant 2 automation, but the purchase of the Personal Computers was deferred pending a staff evaluation to identify more cost effective options. After discussion on this item, it was moved, seconded and duly carried to approve the following actions: .. Minutes of Finance, Adr,nd Human Resources Committer Page 7 ! · October 11, 1995 1. Recommend to the Joint Board that the Districts' policy with regards to standards for PC technology shall be that all PC technology purchases be limited to the most recent list of Tier 1 and Tier 2 vendors as defined by GartnerGroup, for both desktop computers and mobile computers. 2. Recommend to the Joint Boards that the Districts policy state that, with regards to the purchase of PC technology all purchasing actions utilize California Multiple Award Schedule (CMAS) contracts for the purchase of PC technology from among the list of Tier 1 and Tier 2 vendors as mentioned in the previous motion. Staff will compare CMAS pricing and choose the lowest priced Tier 1 and Tier 2 vendor's configuration applicable to the Districts' needs. 3. Recommend consideration of motion authorizing staff to issue a purchase order to Dell Computer, the lowest priced Gartner Tier 1 /2 vendor at this time, in a total amount not to exceed $208,900.00, including sales tax, for the Purchase of 60 Personal Computers and monitors and other associated components (Specification No. E-261 ). 4. Direct staff to issue an RFP for Hardware Maintenance Services and an RFP for Software Help Desk Services. Staff will evaluate proposals, rank and present their recommendations to the Committee for award of a Purchase Order for such services in an amount estimated not to exceed $150,000. FAHR95-43 Consideration of motion to approve staff recommendation for the establishment of a Relief Operator bonus of $.60 per hour for employees covered by the Operations and Maintenance Memorandum of Understanding through a Side Letter Agreement in order to reduce overtime costs. Gary Hasenstab, Director of Human Resources, advised the Committee that the annual overtime cost to operate both treatment plants is currently about $375,000. Forty-eight percent (48%) of this total, or $180,000, is attributable to holiday coverage and is currently controlled by operating at minimum staffing levels on holidays. The remaining fifty-two percent (52%), or $195,000, is caused by employees working overtime to cover for the scheduled or unscheduled absences of other employees in an effort to meet minimum staffing requirements. Overtime costs could be further reduced through use of a relief, or floater, position that could be assigned to any vacant shift on a regular basis. A Relief Operator bonus offers an inducement to work this otherwise undesirable and unpredictable shift, which may vary from mornings one week to nights the following week. Eight such positions at both plants have the potential of reducing overtime costs by up to $100,000 annually. ,. Minutes of Finance, Adm· nd Human Resources Committe Page 8 October 11 , 1995 After discussion on this item, it was moved, seconded and duly carried to recommend the Executive Committee approve staffs recommendation to establish a Relief Operator bonus of $0.60 per hour for employees covered by the Operations and Maintenance Memorandum of Understanding through a Side Letter of Agreement. (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 No reports were requested. (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 OATES AND ITEMS TO BE DISCUSSED AT THOSE MEETINGS The next Committee meeting is scheduled for Wednesday, November 8, 1995. (14) ADJOURNMENT The meeting was adjourned at 7:40 p.m. GGS:lc J:\WPDOC\FIN\CRANE\FPC.MTG\FAHR.95\FAHR.MIN\MFAHR10.95 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 October 11, 1995, was duly posted for public inspection in the main lobby of the Districts' offices on October 5, 1995. Posted: IN WITNESS WHEREOF, I have hereunto set my hand this 11th day of October, 1995. ach of the Boards of Directors of County , 2, 3, 5, 6, 7, 11, 13 & 14 of Orange -~-----< __ , 1995, //,'IS' A.M. By: ~~ J:IWPDOC\FINICRANE\FPC.MTGIFAHR.95\CERTPOsnCERTPO10.95 phone: (7'14 I 962-2411 msllrng adtfr~: P.O. 8ox 8127 Fountain VaUey, CA 82728'8127 street address: 10844 Ellis Avenue Fourita1n Valley, CA 92708-7018 Member Agencies • Citles Anaheim Brea Buena Park cypress Fountain Valley Fulle11ton Huntington Beach Irvine La Habra La Palma Los Alamitos Newport Beach Orange PliJoentla Sanc:e Ana Seal Beach Sta(lron Tustin VJ/la Park Yorba Unda County of Orsng_e Sanitary Districts Costa Mase Garden Grove Midway City Weller Dlstrlcts Irvine Ranch ,,.-, '\ COUNTY S .. ___ .ffATION DISTRICTS OF •RA, -~i COUNTY, CALIFORNIA October 4, 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, OCTOBER 11, 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:IWPDOC\FINICRANEIFPC.MTGIFAHR.95\NOTICBNOTICE10.95 A Public Wastewater and Environmental Management Agency Committed to Protecting the Environment Since 1954 ) October 4, 1995 FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE TENTATIVELY SCHEDULED MEETING DATES Finance, Administration and Human Resources Executive Committee Committee Meetings Meetings Joint Board Meetings October October 11 , 1995 October 18, 1995 October 25, 1995 November November 8, 1995 November 8, 1995 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 September September 11, 1995 September 18, 1995 September 25, 1996 J:\WPOOCIFINICRANE\FPC.MTGIFAHR.95\NOTICE\NOT1CE10.95 CSDOC D P.O.Box8127 D FountainValley,CA92728-8127 •Tel. (714)962-2411 •FAX(714)962-3954 FINANCE. ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING DAT: October 11.1995 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 -------··························· -------......................... . 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 TERRY ANDRUS, GEN'L. COUNSEL -------·········~·-························· ROU.1.115 TIME: 5:30 P .M. ADJOURN ___ _ ABSENT PRESENT October 11, 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' ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708 REGULAR MEETING WEDNESDAY. OCTOBER 11c 1995 -5:30 P.M. 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). October 11, 1995 ( 4) The Committee Chairman, General Manager, Assistant General Manager( s ), Director of Finance!Treasurer, Director of Human Resources, Director of Information Technology 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) (1) Report of Assistant General Manager -Administration (2) Report of Assistant General Manager -Operations (d) (1) Report of Director of Finance (2) Report of Treasurer (e) Report of Director of Human Resources (f) Report of Director of Information Technology (g) Report of General Counsel (5) Approval of draft Finance, Administration and Human Resources Committee Minutes for Meeting of September 13, 1995. (6) Consideration of OMTS95-041 -Compressed Natural Gas (CNG) Refueling Station -(Ed Hodges) (7) Old Business. FPC95-13 Consideration of motion to approve reimbursement of participants' deferred compensation contributions -(Judy Wilson) FAHR95-25 Consideration of motion to approve revision of Resolution No. 95-54 Pertaining to Classification, Compensation, and Other Terms, Conditions, Rules and Regulations of Employment- (Gary Hasenstab) (8) New Business. FAHR95-38 Consideration of motion approving authorization for staff to solicit bids for Phase Ill and IV F.I.S. Consultant and Acceptance of F.I.S. RFP prepared by Deloitte & Touche -(Mike White) FAHR95-39 Consideration of motion to receive and file staff report regarding Monitoring of the Local Agency Investment Fund -(Steve Kozak) -2- r October 11, 1995 New Business Continued FAHR95-40 Consideration of motion to change the "Agreement for Purchase and Sale of Capacity Rights in Treatment, Disposal and Sewer Facilities" between County Sanitation Dstrict No. 14 and the other County Sanitation Districts of Orange County -(Judy Wilson) FAHR95-41 Consideration of motion to receive and file staff report regarding performance monitoring of Pacific Investment Management Company -(Steve Kozak) F AHR95-42 Consideration of motion to approve staff recommendations Re Microcomputer Acquisition Issues -(Specification No. E-261) -(Steve Hovey) FAHR95-43 Consideration of motion to approve staff recommendation for the establishment of a Relief Operator bonus of $.60 per hour for employees covered by the Operations and Maintenance Memorandum of Understanding through a Side Letter of Agreement -(Gary Hasenstab) (9) Closed Session. !---:~:~:. ~!0:ii~~=:~:~~i~:~~:~~~~~i:~:~~;;~~~-~:;::~:;:~~~~:~~-;~----- ·.l::: closed session to consider matters of pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.9, 54957 or 54957 .6. 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. : : • -,-••·••_..•..••--·--•-••-•.-•••••••·•••·•••·••••••••-•••••••••••••••••--•••• _d, ,..,.,.,. ............................................. , ............................................... : .............................................................. ' (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. -3- October 11, 1995 (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 . .. -~::: :::::=:~~::::~g~~i~--:~~-~~~~~:-~~-~~: ro~ac~::. o~-~~--~:~~~~~-.---! Administration and Human Resources Agenda, Committee members should contact the f::·· Committee Chair or Secretary ten days in advance of the Committee meeting. Committee Chair: George Brown (310) 431-2185 I Secretary: Lenora Crane (714) 962-2411, Ext. 2501 ! . . (714) 962-3954 (FAX) ! , ................ ._ ................................................................. ,. ............................................................................................................................................................... ._ ........................... , J:IWPDOC\FIN\CRANE\FPC.MTGIFAHR.95\AGENDA\AGENDA10.95 -4- (4)(d)(1) Director of Finance Report .E2!m!! • Written Report •Overheads •Slides • Flip Charts FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR OCTOBER 11, 1995 {4){d){1) Director of Finance Report Summary: In June 1995, the daily rate COP program remarketing agents were changed from Merrill Lynch to PaineWebber 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." Variable rates historically rise at the end of each calendar quarter because of business taxes and statements. They decline to prior levels immediately in the following month. This process has occurred as expected in September. 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\ITEMIOOF10.95 ss-das-a g5-das-oz; ss-das-£~ I-Q. a:: RI 3: 0 en C: a. Q) ss-das-90 Cl w 0 0 a:: en ~ * I 0 g5-6nv-0£ Q. RI I-3: en u, Cl -<( :c w g5-6nv-£z: + I-~ C: RI ~ 0 a. g5-6nv-9~ ::!!: 0 a: -; 0 + 0 0 ss-Bnv-so Q) C .0 .0 u, i 0 C: ss-6nv-z:o "iii ll. + -g5-1nr-9z; -ss-1nr-s~ c.. ss-1nr-z:~ 0 u .... Ill :c r---<:'! .m C'Cl ..-.... ..-ss-1nr-so ~ IO 0 0 0 0 0 0 0 > 0) 0 0 0 0 0 ~ 0 0) co iti "¢ ..; <"i c:i Ill -..-w m -. u 'V (%) 31 V}:I I- 0 cc X -. C j!l 0 ..-0 -~ --C. --I\,) - ' E!!m!!1 D Written Report •Overheads Origl~ Department Head Sign Off ; /. 1 J.'>_d • Slides Anticipated Time Ii Min. • Flip Charts FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (4)(d)(2) Summary AGENDA FOR OCTOBER 11, 1995 Treasurer's Report As reported last month, both PIMCO and Mellon signed their final contracts on September 6, 1995, in time for the U.S. Treasury Bill maturity of September 7. $233.1 million was placed in the long-term portfolio and $60 million went into the short-term portfolio. The initial month-end report form from PIMCO is included in the agenda package as item FAHR95-41. In response to Director Linn's question about monitoring of LAIF, staff has prepared a brief report which is enclosed with this agenda as item FAHR95-39. Balances CSDOC September 30, 1995 State of Calif. LAIF $ 17 I 108,203 Bank of America 1,284,651 PIMCO -Short-term Portfolio 60,000,000 PIMCO -Long-term Portfolio 233,100,000 District 11 GO Bond Fund 10,013 Debt Service Reserves @ Trustees 26,324,156 $337,827,023 *Partial month performance. Please see FAHR 95-41 for discussion. Staff Recommendation Information Only. J:\WPDOC\FIN\CRANE\FPC.MTGIFAHR.95\ITEM\TREAS10.95 Estimated Yield 5.91% 4.58% * * 5.64% 6.51% October 11 , 1995 CSDOC TOTAL CASH & INVESTMENT $500 $400 I!! ~ $300 0 a 0 II) ~$200 5l $100 $0 ..........,r'-----t'-------.'---+-----.----r--+------,-'--------,C--------,'--~ Dec 6 Dec 31 Jan 31 Feb 28 Mar 31 Apr 30 May 31June 30July 31Aug. 31Sept. 30 J:IWPDOC\FIN\CRANEIFPC.MTGIFAHR.95\fTEMITREAS10.95 -(1'I - -· :::s C: ct IA , ' FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR OCTOBER 11, 1995 ( 5) Consideration of motion to approve the draft Finance, Administration and Human Resources Committee Meeting Minutes of September 13, 1995 Summary Attached is a draft of the Finance, Administration and Human Resources Committee meeting Minutes of September 13, 1995, for approval by the Committee. Staff Recommendation It is recommended that the minutes of the September 13, 1995, Finance, Administration and Human Resources Committee meeting be approved. These minutes were submitted to the Executive Committee at their September 20, 1995 meeting, and no further action is required. J:IWPDOC\FINICRANE\FPC.MTGIFAHR.95\FAHR.MINICVRMFH10.95 I~ 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 (2) APPOINTMENT OF A CHAIRMAN PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS No comments were made. Minutes of Finance, pr-~f-and Human Resources CommW -,, Page 2 . l September 13, 1995 (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 -Administ ration 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, uPIMCO," 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, Ad~nd Human Resources Committen Page 3 , 1 1 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, ,4,...~· and Human Resources Commir -l Page 4 . 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 (EV) Finance Function Review Quarterly Status Matrix Gary Streed and Steve Hovey reviewed the initial Status Matrix summarizing the EV 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 RE.PORT 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~nd Human Resources Committee--"'\ Page 5 · ' J 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\FPCMTGIFAHR.95\FAHR.MIN\MFAHR9.115 Fonnat D Written Report •Overheads D Slides • Flip Charts Originator ~ /J- Department Head Sign Off C hf-- Anticipated Time (5,w~~- FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (6) Summary AGENDA FOR OCTOBER 11, 1995 Consideration of OMTS95-041 -Compressed Natural Gas (CNG) Refueling Station Ed Hodges, Director of Maintenance, will give a brief presentation on the attached staff report detailing the costs associated with the operation of a Compressed Natural Gas refueling station. Budget Information When staff put together this year's CORF budget, we did not anticipate participating in this project and, therefore, did not allocate funds for this project. There are sufficient funds available in the existing reserves or from postponed projects, therefore, staff is requesting that sufficient funds be transferred to allow us to build this station with the understanding that as revenues generated by this project begin to be realized, they will be used to reduce the gallonage charge. Staff Recommendation Staff believes this project is worthwhile and recommends that the Committee approve it and authorize staff to reallocate construction funds in the 1995-96 budget. J:\WPDOC\FIN\CRANE\FPC.MTG\FAHR.95\ITEM\OMTS9541.CVR September 25, 1995 STAFF REPORT OMTS95-041: Compressed Natural Gas (CNG) Refueling Station BACKGROUND At the September OMTS Committee meeting, staff presented the proposal that was submitted to the South Coast Air Quality Management District (SCAQMD) for some of the AB 2766 funds. On Friday, September 15, 1995, we received notification from the SCAQMD that our proposal was one of two proposals they would be funding. In our proposal we had requested $447,662 from the SCAQMD. The total funding we will be receiving is $447,000. Authorization was also received at the September OMTS Committee meeting to put together a second proposal for additional AB 2766 funds. There is $7 .5 million available for an Electric Vehicle project which staff will be considering for a possible proposal. We will keep the Directors advised. SUMMARY As we discussed in September, the Sanitation Districts will own and operate a CNG refueling station for use by not only Pima Gro but, the Sanitation Districts' future CNG fleet, the cities, school districts and the public. The cost for this station is estimated not to exceed $835,374. Attachment "A" of this report is an estimated cost breakdown for constructing this station. The station will be built in stages as the load on the station increases. When operational, this refueling station will become a revenue stream for the Sanitation Districts. Attachment "B" to this report is a proposed schedule to design, permit and construct this facility. The cost to do this work is part of the Gas Company's responsibility and was included as an in-kind contribution on its part. The Gas Company, will prepare the plans and specifications, we will then bid the job (consistent with Districts policies) and will be bringing it back to the PDC for action. Also attached for your guidance and information is a Pro Forma Analysis (see Attachment "C"). The assumptions for this analysis are as follows: A. ANNUAL LOAD 1. The station will start out with ten trucks in 1996, will grow to 20 trucks in the year 2000 and will further increase to 30 trucks in the year 2005. Each truck will fill up with 50 gallons of fuel, 4 days/week, 52 weeks/year. The conversion factor used per diesel gallon equivalent (OGE) is 1.35. 2. In 1998, the Sanitation Districts will begin replacing its old fleet with CNG vehicles and this rate will increase 5% per year until the year 2005. 3. The City of Fountain Valley will begin using this station in 1997 and its use will increase at a rate of 5% per year until the year 2000. CS DOC • PO Box 8127 • Fountain Valley, CA 92728-8127 • (714) 962-2411 OMTS95-041 Page 2 of 3 September 25, 1995 4. The public will begin using the facility in the year 1999 and their use will increase at a rate of 5% per year thereafter. B. STATION RECOVERY 1. The Sanitation Districts will enter into a long-term contract to provide fuel to the haulers at a rate of $0.91/gallon. 2. The Sanitation Districts will provide fuel to itself at the current rate for unleaded fuel which is $0.94/gallon. 3. The Sanitation Districts will provide fuel to the cities at a rate of $0. 95/gallon. 4. The Sanitation Districts will provide fuel to the public at a rate of $1.00/gallon. Please note: The Sanitation Districts would be wise to tie its fuel contracts to a differential based on the price of unleaded gasoline (which is projected to increase significantly as the manufacturers are mandated to produce the new reformulated GARB II fuels). C. STATION EXPENSES 1. The cost for a therm of natural gas is widely traded on the open spot market. In August 1995, this cost was $0.13 per therm and in this past winter it has ranged as high as $0.23 per therm. For purposes of this analysis, the worst case was assumed and $0.23 per therm was used. 2. Taxes are the true cost of the current Federal and State tax. 3. Interstate Demand is the cost to get the therm of gas from the well head to our plant. 4. SoCal Transportation cost is the cost SoCalGas charges to use their transportation lines. 5. Fixed Station Maintenance Costs assume that the Districts privatize the maintenance of the facility and not use Districts staff. D. NET INCOME 1. Total expenses minus the station recovery. For purposes of this analysis it was assumed that all $835,374 would be spent in the first year. In actuality, this station would be built in stages to handle the load as it increased due to an increase in the demand on the station. Nevertheless, under this worst-case scenario, the station still shows an internal rate of return of 8%. OMTS95-041 Page 3 of 3 September 25, 1995 BUDGET INFORMATION When staff put together this year's CORF budget, we did not anticipate participating in this project and, therefore, did not allocate funds for this project. There are sufficient funds available in the existing reserves or from postponed projects, therefore, staff is requesting that sufficient funds be transferred to allow us to build this station with the understanding that as revenues generated by this project begin to be realized, they will be used to reduce the gallonage charge. RECOMMENDATION Staff believes this project is worthwhile and recommends that the Committee approve it and authorize staff to reallocate construction funds in the 1995-96 budget. EEH:cm R:\WPDOC\331 0\EH\OMTS\95-041.SR ,~ ( I ATTACHMENT 'A' F. NGV Fueling Station Cost Estimate NGV Fueling Station Cost Estimate CSDOC NGV FUELING STATION PROPOSAL COST ESTIMATE SoCalGas Components Estimate In-Kind EQUIPMENT Electric Transformer $ 14,000 Electric Switchgear 30,000 Meter Set Assembly 5,000 $5,000 Bus Offloading Panel 1,000 Dryer 40,000 Compressor 250,000 Compressor Enclosure 40,000 ASME Storage Vessel 33,000 Card Reader 16,000 CNG Dispenser 85,000 Minor Components 12,000 Sales Tax (8.25%) 43,395 Freight 7,000 Subtotal $576,395 CONSTRUCTION Construction Management $34,500 $34,500 Electric Tie-in 0 Gas Tie-in 50,000 $50,000 Construction 91,500 Subtotal $176,000 ENGINEERING Design $25,000 Project/Construction Management 20,000 Quality Assurance 10,000 Purchasing 5,000 Subtotal $60,000 SUBTOTAL ALL COMPONENTS $812,395 Contingency (20 percent) 162,479 TOTAL* $974,874 $89,500 . Rough Order of Magnitude Estimate includes +/-20 percent to account for site-specific design requirements. County Sanitation Districts of Orange County • Appendix F TASK., .,__ __________________ TYPICAL DPC PROCESS _____________________ -! I WIIIIKI I I I 4 I I r I t It II II II 14 II II tr II II II II II 11 14 II II tr II It 11 11 11 11 14 11 11 1r 11 !: ... ~.~.~~~.~~····· .. ·-···········-·r.:> ..... ; .......... ··•l·····L ..... j ..... 1 ...... , ...... i ...... L ...... '. ..................... ; ..... ) ..... + ..... 1 ...... t ...... l ...... L. .... , .............. ; ....... L ..... ; ...... + ..... t ..... + ..... i ............. : ...................... : ....... , ..... +·· .. ·I··• .. . DESIGN. L~ : : ! ' . ; ! l . ! i ! . . : I ; ~. ""'ftAH'""""""'""'"""'"..... . 9 t: L~:l :! ; :I :'. : : , : ! :J : , : : r:: t ; l : t . () --I : I : : : • I . . ~ .. , ............................ .-...... 1.. .... 1 ...... L .... i ..................................... : ...... ; ....... 1 ...... l ...... 1 ....... ; ...... . C °' : ' ' ! .. , . i ' ... : ·;··· r ;··r1·· ......... : _ .~ ~:) ! ;_. ·-··:.; .. : LL!. : .. ~:~··:'I.Jt~·~~~~ .................................................................. ., ...... 1 ............ 1 ................... : ...... i ........................ ~.~·~······l .. , ... ~ ..... L.,'. ...... : ....... ~ ............. 9. .......................... j ................ , ........................................ ~ ............. ~ ..... . , .• ISSUlll'OUI.ANCHF.CK ! : ! i j I l i I .... ~ ____ ., ._:: ... ~ .. :..... . . ....... , .. ·,wu ... r ... r .......... ; ...... , ...... , 0 ..... , ...... ( , ' . , , . " •••• •• "'"••••·•• '••••n--•••••• • i;! .. =A~:~~~:uu.uNE.(11 ~•~ . OSTAIN SEJlVICU FROM UTlUTY CO. ·.! ~.~~.!~!.~.~ 5.~~-............................ . . 2 TELl!PHONB ... ............... PERMITS.. . ......... ...... . . ! ! l , · ! ; I ! ! ·1 i • H l i : '9. PIIRMrTS · : ! : 0 '. -• · • : : : . . I I : . . ; l : I I : I . . ' I : ••••••••••••••••••••••••••••••••••••n••••••• ••••••••••••••••••••••••••' • • • •••••••••••• •••••••• ,, -~· ... -······,················· ..... 04 •• , .... _.,, ••••• '··············•··························-·····-············· ..... ......... . .. -.. ' . ·-•··· ........... ._ ................ ~ ...... ·-•· .. -••·•····· .. . ····••M--................. ~ ...... ·1· ·• I· ·:· .. . . ..; ....... 1 .... ··+······1····+ .... '.. ..... ... .l. : I : • • ! . I I • ! : I : I I : I : ; i i ; I l ! I i ._.___..:..._ ~ ~ • 0 :I: s m z ~ .. (IJ Proforma AnalYsis Sh aet1 9/21/95 12:13 CSOOC NG STATION INCOME STATEMENT 1996 1997 1998 1999 2000 2001 2002 Annual Load M therms/Yr) -HAULERS 140.40 140.40, 140.40 140.40 280.80 280.80 280.80 Annual Load M therms/yr) -OCSD 5.90 6.20 6.50 6.83 7.17 Annual Load M therms/yr) -CITIES 50.00 52.50 55.13 57.88 57.88 57.88 Annual Load I M therms/Yr) -OTHER 5.00 5.25 5.51 5.79 TOTAL ANNUAL LOAD 140.40 190.40 198.80 206.72 350.44 351.02 351 .64 Station Recovery -HAULERS($0.91/ga0 94.64 128.34 134.01 139.34 236.22 236.62 237.03 Station Recovery -OCSD {$0.94/aaO 4.95 5.20 5.46 5.73 6.02 Station Recovery -CITIES ($0.95/gal) 42.41 44.53 46.76 49.10 49.10 49.10 Station Recoverv-OTHER ($1 .00/aall 4.46 4.69 4.92 5.17 TOTAL STATION RECOVERY 94.64 170.75 183.49 195.77 295.46 296.37 297.31 Station Exoenses: {$1 ,000) Commoditv ($0.23/therm) 32.29 43.79 45.72 47.55 80.60 80.74 80.88 Taxes (haulers-$.047)(others-$.117} 6.60 12.45 13.43 14.36 21.35 21.41 21 .49 Interstate Demand ($0.04/therm) 5.62 7.62 7.95 8.27 14.02 14.04 14.07 So Cal Transportation Costs ($0.09/lherm) 9.83 17.14 17.89 18.60 31 .54 31 .59 31.65 Fixed Station Maintenance 20.00 18.00 18.00 18.00 18.00 18.00 18.00 Variable Station Maintenance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Power ($0.035/kw-hr) 9.00 12.21 12.74 13.25 22.46 22.50 22.54 Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 EPAct Tax Deduction 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Depreciation Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL EXPENSES 83.33 111.20 115.74 120.03 187.97 188.28 188.62 NET INCOME ($1,000) 11.31 59.56 67.75 75.74 107.50 108.08 108.70 CUMMULA TIVE NET INCOME {$1,000) 11 .31 70.86 138.61 214.34 321.84 429.92 538.62 CASH FLOW STATEMENT NET INCOME ($1 ,000) 11.31 59.56 67.75 75.74 107.50 108.08 108.70 DEPRECIATION 0 0 0 0 0 0 0 EPAct Tax Deduction 0 0 0 0 0 0 0 Cash Flow 11.31 59.56 67.75 75.74 107.50 108.08 108.70 Internal Rate of Return 8% -836 11.31 59.56 67.75 75.74 107.50 108.08 108.70 Page 1 2003 2004 2005 2006 280.80 280.80 421 .20 421.20 7.53 7.91 8.30 8.30 57.88 57.88 57.88 57.88 6.08 6.38 6.70 7.04 352.29 352.97 494.08 494.42 237.47 237.93 333.05 333.27 6.32 6.64 6.97 6.97 49.10 49.10 49.10 49.10 5.43 5.70 5 .. 98 6.28 298.31 299.36 395.09 395.62 81 .03 81 .18 113.64 113.72 21 .56 21.64 28.32 28.36 14.09 14.12 19.76 19.78 31.71 31 .77 44.47 44.50 18.00 18.00 18.00 18.00 0.00 0.00 0.00 0.00 22.58 22.63 31 .67 31.69 0.00 0.00 ·0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 188.97 189.34 255.87 256.05 109.34 110.02 139.23 139.57 647.96 757.98 897.21 1036.78 109.34 110.02 139.23 139.57 0 0 0 0 0 0 0 0 109.34 110.02 139.23 139.57 109.34 110.02 139.23 139.57 2007 2008 421 .20 421.20 8.30 8.30 57.88 57.88 7.39 7.76 494.77 495.14 333.51 333.76 6.97 6.97 49.10 49.10 6.60 6,93 396.17 396.75 113.80 113.88 28.40 28.45 19.79 19.81 44.53 44.56 18.00 18.00 0.00 0.00 31.72 _31.74 0.00 0.00 0.00 0.00 0.00 0.00 256.24 256.44 139.93 140.31 1176.72 1317.03 139.93 140.31 0 0 0 0 139.93 140.31 139.93 140.31 2009 421.20 8.30 57.88 8.14 495.53 334.02 6.97 49.1 0 7.27 397.36 113.97 28.49 19.82 44.60 18.00 0.00 31.76 0.00 0.00 0.00 256.65 140.71 1457.74 140.71 0 0 140.71 140.71 2010 421 .20 8.30 57.88 8.55 495.93 334.30 6.97 49.10 7.64 398.00 114.07 28.54 19.84 44.63 18.00 0.00 31.79 0.00 0.00 0.00 256.87 141 .13 1598.87 141 .13 0 0 141.13 141.13 -- . ' s m z -I .. 0 ~nReport D Overheads D Slides D Flip Charts Originator ~'/ :;-~ Department Head Sign Off • / ' Anticipated Time /O l"V\)., "'-- FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FPC95-13: Summary: AGENDA FOR OCTOBER 11, 1995 Consideration of motion to approve reimbursement of participants' deferred compensation contributions Since 1975, the Districts have maintained an IRS-approved Deferred Compensation Plan at the Orange County Treasury. These funds were included in the OCIP failure. On January 5, 1995, the County Board of Supervisors established pay-out limits for all participants in the pool. The Board determined that there would be a 90% pay-out to County employees participating in the deferred compensation plan. The County provided the non-County participants with an 80% pay-out, treating them the same as the balance of the OCIP investors. The value of the CSDOC deferred compensation fund on December 6, 1994 was $4,666,679.79. On June 27, 1995, 80% was transferred to Lincoln National Insurance Plan. The remaining $933,335.96 is outstanding for the deferred compensation participants at the Districts. The County Sanitation Districts of Orange County was the only non-County group of participants whose deferred compensation plan was administered and segregated at the County at the time of the bankruptcy. This issue was discussed by the Finance and Personnel Committee in January and February 1995. There was a general consensus that an effort should be made to limit or eliminate any loss to District participants. At the same time, there was a lot of uncertainty as to the status of the bankruptcy proceedings and its impact on Districts' reserves and stream of property tax revenues. The Committee asked that this matter be reconsidered when the status of the entire County pool was resolved. Now that the Orange County Consensus Plan has passed the Legislature and the Districts' financial picture is more certain, it is appropriate to bring this matter back for reconsideration and action. The attached staff report and performance graphs provide additional information which will be reviewed at the meeting. J:\WPOOC\FINICRANE\FPC.MTGIFAHR.95\ITEM\FAHR95.13 Staff Recommendation Staff recommends the FAHR Committee approve the following three-point resolution: A. Deposit $311,119 of the loss for the next three years with Lincoln National Insurance Plan. B. Do not provide an •interest earnings• adjustment. C. Distributions from the Bankruptcy Court on behalf of the Deferred Compensation Plan will reimburse the Districts, to the extent that they are available. J:\WPOOCIFINICRANE\FPC.MTGIFAHR.95\!TEMIF/\HR95.13 September 27, 1995 FPC95-13: Background STAFF REPORT Deferred Compensation Plan-Reimbursement of Participants' Contributions Since 1975, the Districts have had an IRS-approved Deferred Compensation Plan. All employees are eligible to participate in the plan. Currently, there are 321 active participants in the Plan. Two options were provided for the plan deposits: the Lincoln National Insurance Plan and the Orange County Commingled Investment Pool. Prior to the County bankruptcy, 67% of the participants made their deposits to the County pool. As of June 27, 1995, there are no deferred compensation participants from the Districts still in the County pool. (No contributions have been made to the County pool on behalf of Districts' employees since before December 6, 1994.) On January 5, 1995, the County Board of Supervisors established pay-out limits for all participants in the pool. The Board determined that there would be a 90% pay-out to County employees participating in the deferred compensation plan. The County provided the non- County participants with an 80% pay-out, treating them the same as the balance of the OCIP investors. The value of the CSDOC deferred compensation fund on December 6, 1994 was $4,666,679.79. On June 27, 1995, 80% was transferred to Lincoln National Insurance Plan. The remaining $933,335.96 is outstanding for the deferred compensation participants at the Districts. The County Sanitation Districts of Orange County was the only non-County group of participants whose deferred compensation plan was administered and segregated at the County at the time of the bankruptcy. This issue was discussed by the Finance and Personnel Committee in January and February 1995. Attachment No. 1 is a legal opinion which was provided to the Joint Chairman and Executive Committee on February 22, 1995, which states that while the Employer is "not responsible for any loss to the investment," there is no prohibition against the Districts voluntarily choosing to replace the loss. There was a general consensus that an effort should be made to limit or eliminate any loss to District participants. At the same time, there was a lot of uncertainty as to the status of the bankruptcy proceedings and its impact on Districts' reserves and stream of property tax revenues. The Committee asked that this matter be reconsidered when the status of the entire County pool was resolved. Now that the Orange County Consensus Plan has passed the Legislature and the Districts' financial picture is more certain, it is appropriate to bring this matter back for reconsideration and action. CSDOC D P.O. Box 8127 • Fountain Valley, CA 92728-8127 • Tel. (714) 962-2411 • FAX (714) 962-3954 FPC95-13 Page 2 September 27, 1995 '--- This issue needs to be considered in terms of employee relations, fairness, organizational efficiency and fiscal reality. Districts' participants, in good faith, deposited their deferred compensation in the pool with the expectation that these funds would be well-managed and available upon their retirement. While a significant amount, $933,335 paid out over a period of three years would be manageable. Interest earnings between December 6, 1994 and June 27, 1995 are speculative, at best. While one could make the presumption that interest earnings would have been X amount if invested at Lincoln National, it is completely hypothetical. Therefore, it would appear most straightforward to compensate for the actual cash loss and not interest earnings foregone. Given the 20% loss, participants would undoubtedly be pleased to be made whole and not expect to receive interest earnings. This type of compromise would be similar to many of the other compromises made throughout the formulation of the Bankruptcy Consensus Plan, where various parties agreed to freeze losses and not calculate present value or foregone interest. In terms of organizational efficiency, the most expeditious means of handling the pay-back would be a three-year transfer to Lincoln National in the amount of $311,111.99 per year. If funds were not transferred to Lincoln National, Districts' staff would need to maintain records and credit interest for over 30 years, including oversight for monthly pay-outs to retirees; preparation of emergency withdrawals for hardships, and processing W2Ps for reporting deferred compensation payments to the IRS. Given the fact that 80% of the participants' portfolios are already at Lincoln National, splitting the administration of the plan would be unnecessarily burdensome and confusing. It should be noted that Lincoln National administers the plan for its participants at no cost to the Districts. During a previous Board discussion of this item, questions were asked about the relative performance of the County Pool vis-a-vis Lincoln National. Also attached are two graphs showing their respective performance from 1991 through 1994. The four-year average interest earnings were 9.38% for Lincoln National and 7.83% for the County Pool. Recommendations A. Deposit $311, 119 of the loss for the next three years with Lincoln National Insurance Plan. B. Do not provide an "interest earningsn adjustment. C. Distributions from the Bankruptcy Court on behalf of the Deferred Compensation Plan will reimburse the Districts, to the extent that they are available. JAW:lc J:IWPOOC\FINICRANEIFPC.MTGIFAHR.951STAFF.RP1'SRFAHR95.13 71 h::P tu/ ,l)?u: l~ / 01/ di '1.-> - LAW OF'F'ICE:S OF' ROURKE, WOODRUFF & SPRADLIN ~G,rU/4 //Hko/- TO: A PROFE:SSIONAL CORPORATION MEMORANDUM Joint Chairman and Members of Executive Committee County Sanitation Districts FROM: General Counsel DATE: February 22, 1995 RE: Deferred Compensation Plan re Districts' Employees As a result of the recent bankruptcy filing by the County of Orange, the fact that the Districts had utilized the Orange County Treasurer as their "Bank/Banker'', and deposited all of the funds of the Districts' Employees Deferred Compensation Plan with that Office, concern has been expressed as to the liability of the Districts to replenish the Fund. This opinion is provided to the Committee to assist in reaching decisions that you may be requested to make in the near future. As the Directors are aware, the Districts have had a Deferred Compensation Plan for their Officers and Employees since 1975, and it has continued in effect at all times thereafter, subject only to several amendments that were necessary to comply with changes in the federal laws and regulations. Perhaps the most significant legal requirement of a Deferred Compensation Plan, so as to make an advantageous tax deferral program for Employees, is a legal requirement that: " ... All property and rights to property ... remain solely the property and rights of the district ... subject to the claims of the general creditors of the district only." (Internal Revenue Service Regulation Section 1.457-2(J)) In accordance with this requirement of the Internal Revenue Code, the Districts' Deferred Compensation Plan restates that, by providing: "All deferred compensation credited to the Deferred Compensation Investment Fund, all property and rights purchased with amounts credited to the Deferred Compensation Fund, and all income attributable to such amounts, property, or rights, shall be and remain (until made available to the Participant or other Beneficiary), solely the property and rights of the Employer ... subject only to the claims of the Employer's general creditors. Without such Employer ownership, the Plan would not qualify as an 'eligible Deferred Compensation Plan', within the meaning of Internal Revenue Code Section 457, so as to make tax benefits available to the Participants." (CSDOC Deferred Compensation Plan, Section 8) Joint Chairman and Members of Executive Committee County Sanitation Districts February 22, 1995 Page2 Regarding the obligation of the Districts to invest and protect the investment for each Employee, Section 7 of the Plan is governing. Section 7 provides: "SECTION 7: Investments. The Employer is not required to invest the amounts in the Deferred Compensation Investment Fund. However, it is the Employer's intent to invest and reinvest such amounts in a manner intended to increase the same, and the net interest, accumulation and increments thereon shall be credited to, and held in, the Deferred Compensation Investment Fund for the benefit of the Participants, provided that such amounts remain the unrestricted assets of the Employer, as set forth in Section 8 below. The Employer shall not be responsible for any loss due to the investment or failure of investment of such assets; nor shall the Employer be required to replace any loss whatsoever which may result from said investments." [Emphasis added] As is evident from the provisions of the Code and the Districts' Plan, the Districts, at all times, are the owner of the monies withheld and deferred as compensation for the individual Employees. The Employees' rights are not to the specific amounts deposited, but rather a contractual right with the Districts, pursuant to the Participation Agreement. Furthermore, as the sole owner of the property, the Districts are subject to the general creditors of the Districts, and thus, any losses that may incur as a result of investments by the Districts are not the legal responsibility of the Districts. Notwithstanding that provision, there is no prohibition from the Districts making an independent determination that they voluntarily choose to replace any loss that has occurred in the investment portfolio for the collective contributions of the Employees. If that is the detennination of the Districts, they could do so by replacing any or all portion of the loss, and the only restriction would be that it would have to be done on a fair and equitable basis for each and every Employee. TLW:pj cc: Mr. B. P. Anderson Ms. P. Kyle Mr. G.G. Streed rJr//W~~t:- THOMASi.woooRUFF T' GENERAL COUNSEL j I i GI Cl I! ! 6/7/95 Page 1 AVERAGE INTEREST RATE COMPARISONS 20.00% 18.00% 16.00%·•·----- 14.00% 12.00% __,_ ------------ 10.00% _,__ ----------------' \ . / 8.00% --------------.----\_ ---------------------/----------.a:. 6.00% -,------------------------ 4.00% _,_ -------------------------- 2.00% 0.00% -1----------------------------------------------------! 1991 1992 1993 1994 Calendar Year I -+-Lincoln ----OCIP I ~ _) _) .... 6/7/95 Page 1 AVERAGE INTEREST RA TE COMPARISONS 20.00% 18.00% ·•----· 16.00% 14.00% ) Ill .!! 12.00% Ill a: .. Ill I!! .!! 10.00% .5 CD Cl I! 8.00% CD > ,( 6.00% 4.00% _,_ --- 2.00% ... --- 0.00% 1991 1992 1993 1994 Calendar Year I •Lincoln •OCIP I • ., I ( Format [] Written Report CJ Overheads CJ Slides Cl Flip Charts Originator-Jft Department Head Sign Off , ~· . Anticipated Time /£. ~ FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR95-25: Summary AGENDA FOR OCTOBER 11, 1995 Consideration of Motion to Approve Revision of Resolution No. 95-54 Pertaining to Classification, Compensation, and Other Terms, Conditions, Rules and Regulations of Employment At the May 24, 1995 meeting, the Boards adopted Resolution No. 95-54 providing for classification, compensation, and other terms, conditions, rules and regulations of employment. This comprehensive resolution replaced Resolutions 79-20 and 79-21 and other resolutions written and adopted from time to time. In addition to simply compiling existing resolution language, several provisions were amended to reflect changes occurring in both legislation and labor law. Staff and General Counsel have reviewed Resolution 95-54, and are proposing amendments to reflect staffing changes in the 1995-96 Budget previously approved by the Boards, further changes in legislation or labor practice, and policy statements that more accurately portray Districts' managements' new direction. Staff Recommendation Adopt Resolution 95-__ on the basis that there are no substantive changes in the level or cost of entitlements over previously adopted resolutions. J:\WPOOC\FIN\CRANE\FPC.MTGIFAHR.95\l'TEMIFAHR95.25C October 11, 1995 FAHR95-25: STAFF REPORT REVISION OF RESOLUTION 95-54 PERTAINING TO CLASSIFICATION, COMPENSATION, AND OTHER TERMS, CONDITIONS, RULES AND REGULATIONS OF EMPLOYMENT On May 24, 1995, the Boards adopted Resolution 95-54 providing for classification, compensation, and other terms, conditions, rules and regulations of employment. This comprehensive resolution replaced Resolutions 79-20 and 79-21 and other resolutions written and adopted from time to time. In addition to simply compiling existing resolution language, several provisions were amended to reflect changes occurring in both legislation and labor law. Staff and General Counsel have reviewed Resolution 95-54, and are proposing amendments to reflect staffing changes in the 1995-96 Budget previously approved by the Boards, further changes in legislation or labor practice, and policy statements that more accurately portray Districts management's new direction. The proposed revision of Resolution 95-54 is attached. Each revision is highlighted by shading, and summarized below by section. Only those sections involving proposed revisions are discussed, with the exception of non-substantive technical or style corrections. If an additional entitlement or cost is involved, the impact is indicated. Employee Units. Employee Bargaining Units' MOU dates and periods are deleted as they were adopted in Resolution 95-54. Definitions. Initial and Promotional probationary period definition amended to provide that "at-will" employees do not serve a probationary period. Section 2. Employee Group exhibits are amended to reflect deletion of the Confidential bargaining unit. Section 3. Reference to the Executive Management Group is clarified. Section 4. Amended to authorize the General Manager to employ Executive Management employees on an "at-will" basis, to enter into an employment agreement with such employees, and to periodically adjust their compensation within the specified salary range. CSOOC D P.O. Box 8127 D Fountain Valley, CA 92728-8127 D Tel. (714) 962-2411 D FAX (714) 962-3954 FAHR95-25 Page2 October 11, 1995 Section 5. Effective date of the organizational listing and exhibit references are revised. Section 6. Contains conforming language to provide that "at-will" employees do not serve a probationary period; "termination" changed to "released". Section 7. Exhibit references are revised. Section 8. Delegates authority for approving initial salary offers beyond the midpoint of an approved range to the General Manager; also authorizes General Manager to offer additional vacation to high level prospective employees if necessary to attract qualified candidates. Section 10. Reference to the Executive Management Group is clarified. Section 11. Removes Executive Management employees from the Management Performance Review Program to conform with Section 40's authority for the General Manager to set the salary of "at-will" employees anywhere in the range. Section 12. Provides for exception of "at-will" employees. Section 14. Reference to Executive Management Group is clarified. Section 20. Deletes superfluous language. Section 50. Incorporates provisions of Resolution 95-81 concerning deferred compensation. Section 51 . Reference to the Executive Management Group is clarified; eligible expenses for the Benefits Option Plan are clarified. Section 66. Clarifies that "at-will" employees may be released without cause. Sections 98 through 1 01. Amends and incorporates the provisions of Resolution 83-77 regarding the reemployment of former Districts employees; provides that former Districts employees may not perform work on Districts projects for a period of one year after leaving the Districts' employment. Section 103. Provides that approved MOU provisions shall prevail over resolution provisions in the event of a conflict. ,, FAHR95-25 Page3 October 11, 1995 Staff Recommendation Adopt Resolution 95-:_ on the basis that there are no substantive changes in the level or cost of entitlements over previously adopted resolutions. GGH:lc J:\WPDOC\FIN\CRANE\FPC.MTG\FAHR.95\STAFF.RPT\SRFAHR95.25 Attachment l- 'I RESOLUTION NO. 9&-64 PROVIDING FOR CLASSIFICATION, COMPENSATION AND OTHER TERMS, CONDITIONS, RULES AND REGULATIONS OF EMPLOYMENT A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF COUNTY SANITATION DISTRICTS NOS. 1, 2, 3, 5, 6, 7, 11, 13 AND 14 OF ORANGE COUNTY, CALIFORNIA, RELATING TO THE CLASSIFICATION, COMPENSATION AND OTHER TERMS, CONDITIONS, RULES AND REGULATIONS OF EMPLOYMENT OF DISTRICTS' EMPLOYEES AND REPEALING RESOLUTIONS 79 29 AND 78 21, AS AMENDED, AND ALL RESOLUTIONS OR ... _. ··::· ~;· . \m,1a.11rta11111m;I:1PoRT10Ns ,_lflf!q! CONFLICT HEREWITH ••••••••••••••••••••• WHEREAS, the Distriots' management Fepresentati>.•es ha\•e Feaohed agFeeFAents, as e\<idenoed by o*ooutoel MeFAeranda of Understanding, with representatiYes of eFApleyee baFgaining 1:1nits as follows: EMPLOYEE U~,iT AdFAinistFati>,e and Glorioal Engineering Teohnioal SeNioes Confidential Operntiens and Maintenanoe PFofessional Group SupeNisory Group MOU DATE 4/06.'04 4/06/94 4!06.'94 8/26,'04 10!10/04 10/10/04 MOU PERIOD 11 /26.'03 11121 /06 11.'26/03 11/21/06 11/26.'03 11/21/86 11126.'03 11/21/06 11126/83 11/21/06 02/01/84 01/31/87 02/01.'04 01131107 WI-IEREAS, the Distriots Boards of DiFOGtors desiFe to implement the pro .. •isions of the approYed Memornnda of UndeFstanding anel to fiJrtheF spooify tl=le goyeming rules and rogulations feF all DistFiots' employees; anel, NOi/i/ TI-IEREFOR: The Boards of Directors of County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California, DO HEREBY RESOLVE, DETERMINE AND ORDER: That the following rules and regulations be established to govern classification, compensation and other terms, conditions, rules and regulations of employment for all persons except the General Counsel, but including Executive Management and Management employees, employed by the County Sanitation Districts of Orange County, by and through the Joint Administrative Organization. 2000-00019 17766_1 ARTICLE I. II. Ill. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. xv. XVI. XVII. XVIII. XIX. xx. XXI. XXII. XXIII. XXIV. XXV. XXVI. XXVII. XXVIII. XXIX. XXX. XXXI. XXXII. XXXIII. XXXIV. XXXV. XXXVI. XXXVII. XXXVIII. XXXIX. XL. XU. XLII. XLIII. XLIV. XLV. 2000-00019 1n66_1 TABLE OF CONTENTS Definitions Basic Salary Ranges Classification/Positions/Salaries Probationary Employees Compensation Overtime Pay -Non-Exempt Additional Compensation -Exempt Shift Differential Pay Standby Pay Call Back Pay Working Out of Class Pay Vacation Sick Leave Personal Leave Conferral of Leave Workers Compensation Leave Jury Duty Witness Leave Military Leave of Absence Leave of Absence Without Pay Medical and Family Leave Bereavement Leave Holidays Insurance Deferred Compensation Benefits Option Plans Executive Management Vehicle Allowance Uniforms Retirement Severance Pay Working Hours Layoff Procedure Discipline Grievance Procedure Problem Solving Procedure Attendance Medical Examination Light Duty Substance Abuse Rideshare Program Nondiscrimination in Employment Sexual Harassment Smoke-free Work Environment Employment of Former Employees Miscellaneous Provisions PAGE 1 2 2 4 4 6 6 7 7 7 8 8 8 9 10 10 10 10 11 11 11 12 12 12 14 14 15 15 15 16 16 16 17 18 20 20 21 21 21 22 24 24 24 25 25 .. I. DEFINITIONS Regular Full-time employees regularly work an 80 hour bi-weekly pay period for an indefinite period of time. Regular full-time employees are entitled to benefits as set forth in the various Memoranda of Understanding and elsewhere in this resolution. Part-time employees regularly work less than 80 hours in a bi-weekly pay period for an indefinite period of time. Part-time employees are not entitled to benefits. Limited Term/Temporary employees are assigned to work 80 hours or less in a bi-weekly pay period for an irregular or indeterminate period of time. Temporary employees are not entitled to benefits. Contract employees are those individuals who provide a unique or special service to the Districts through an independent contractual relationship, and who exercise completely independent judgment with regard to the performance of the work. Individuals in this category do not have an employee-employer relationship with the Districts, and are not entitled to benefits unless specifically provided in their contract. Non-Exempt employees who are covered by the minimum wage and overtime provisions of the Fair Labor Standards Act as amended. Such employees, because of the type of work that they perform and their earnings level, are subject to receiving overtime pay in addition to any entitlement otherwise provided for in applicable Memoranda of Understanding or this resolution. Exempt employees who are not covered by the minimum wage and overtime provisions of the Fair Labor Standards Act as amended. Such employees are considered exempt by virtue of their duties in conformance with the Act's definition of Executive, Administrative and Professional responsibilities. Initial Probationary Period, includes the first six months of employment with the Districts. This period is regarded as an extension of the hiring process, and provides an opportunity for both the employee and the Districts management to assess over a substantial period of time whether or not the hiring decision was appropriate. Probationary employees become regular full-time employees upon successful completion of their probationary period and approval form as provided by the Director of Human Resource. ~~1ltt!R"m~~~~~911!~~~Ji~l~~ij'@f,¥.ip~diJE Promotional Probationary Period includes either the six months or ninety day period, depending on applicable MOU provisions, immediately following the date of a promotion. This period is regarded as an extension of the selection process, and provides an opportunity for both the employee and the Districts management to assess over a substantial period of time whether or not the decision was appropriate. !111.ffltmts.lef!t~,IJl§~n.1~i1~ll1!Jiffl2!!it~ltel~W•rn~miiB Resignation is a voluntary separation, including: resignation with or without notice; an unauthorized absence of three or more consecutive working days; failure to return from leave of absence as arranged; failure to return from layoff upon recall. Release is a separation in which the employee is not qualified for the type of work assigned and no other more suitable assignment is available. Release usually results from no fault of the employee. Employees 'Nho are unable to perf.orrn satisfactorily during a probationary period will ii;lii'Bred as released. HIDR(R¥~;~!~,*:jf<iPil~l!~l\rn11ifi~!]ijh§fimDl!l.fIBirif!!!it 2000-00019 17766_1 1 Layoff is a release of employees when funds or work at a specific skill level is no longer available. Discharge is a separation in which the employee is removed from the payroll for violation of standards of employee conduct, violation of safety regulations, documented unsatisfactory job performance or other proper cause. Termination date is considered to be the last day actually worked by the employee irrespective of any additional pay they may receive. II. BASIC SALARY RANGES Section 1. There are hereby established in the Joint Administrative Organization the basic salary ranges set forth on Exhibit "A", attached hereto and made a part of this resolution. Ill. CLASSIFICATIONS, POSITIONS AND SALARIES Section 2. There are hereby established in the Joint Administrative Organization the classifications, number of positions and their respective salary ranges or hourly rates, as set forth on Exhibit "8-1" through "8-9" inclusive, attached hereto and made a part of this resolution, effective on the dates set forth thereon. Upon the effective date of the agreement with the Orange County Employee Retirement System to implement the retiree medical health premium offset program, salary ranges for all employee classifications shall be increased one percent in accordance with the provisions of Section 47 of this resolution. In addition, salary ranges will be further adjusted in accordance with the following schedule. Employee Group Exhibit No. Adj. Percent Eff. Date Administrative & Clerical 8-1 0.0 11-26-93 3.0 11-25-94 3.0 11-24-95 Engineering 8-2 0.0 11-26-93 3.0 11-25-94 3.0 11-24-95 Technical Services 8-3 0.0 11-26-93 3.0 11-25-94 3.0 11-24-95 Operations & Maintenance 8-4 0.0 11-26-93 3.0 11-25-94 3.0 11-24-95 GeAfiaeAtial B5 g_g H 26 93 3.Q 11 25 94 2000-00019 2 17766_1 a.o 11 24 96 Professional B~}ffl 0.0 07-08-94 3.0 07-07-95 3.0 07-05-96 Supervisory 8-+§g 0.0 07-08-94 3.0 07-07-95 3.0 07-05-96 Executive Management 8-31{1 0.0 07-08-94 3.0 07-07-95 3.0 07-05-96 Management 8-8 0.0 07-08-94 3.0 07-07-95 3.0 07-05-96 Part-Time, Hourly and 8-9 0.0 07-08-94 Unrepresented 3.0 07-07-95 3.0 07-05-96 Section 3. W~~~---~~!~~~!T-~ .. r:1 .. !.;., for employees in the Professional, Supervise~ aAa Executive Management !1.Jltltm~tnt Groups are awarded from a "merit pool" amount established annually by the Boards and allocated to each department in an amount proportional to the salary ~~,~et,<!~ployees included with the Professional, Superviso~ aAG-Executive Miu!Ui:1fflm RB~ Groups. This pool amount is awarded to individual employees based upon their performance as determined by the Management Performance Review Program. Employees in the Professional, Supervisory~ aAa-§K~l.lwi Management ~Bij'_,lffl Groups are not entitled to receive wage adjustments as a result of range adjustments, except to the extent their salary falls outside the range limits. Further, assignment of individual salaries into the top quartile of "E" ranges is limited to 20 percent of the employees in the Professional, Supervisory'f aAa-Executive Mana ement i\''d)tfflli"':'i~~elff Grou s. g ,,J1t ;,;';';';':•;';';':-J1L.:Y-:ti:'"''•-';""-=-,J P Section 4. The General Manager is hereby authorized to employ and assign persons as needed to occupy the positions established in Section 5 herein and to exercise supervision over all persons in accordance with the provisions of this resolution and to terminate, for cause, the employment of any regular full time employee employed under the provisions herein. All other employees, he,-11, probationar/t part-time, limited term/temporary and contract may be terminated at the Districts sole discretion. ·· Section 5. The current organizational listing of the County Sanitation Districts of Orange County, Joint Administrative Organization, designated Exhibit "C", and dated July 1, 1993~~fil~J{gl,i1)ffl~§, is attached hereto and made a part of this resolution. Exhibit "C" sets forth the departments and divisions of the Joint Administrative Organization and designates the maximum number of 2000-00019 17766_1 3 authorized positions in each organizational unit and classifications, except as provided below, and as subject to amendment from time to time by the Boards of Directors. The Districts are governed by the provisions of the Federal Fair Labor Standards Act, "FLSA", and in accordance therewith, after study and evaluation of the duties and responsibilities of all job class~tions do hereby establish those classifications that are within the Executive Management, f~gi Supervisory and Professional Groups all as set forth on Exhibits "~f through "B- Of , inclusive, as exempt from the provisions or the FLSA. If, in the detennination of the General Manager, qualified applicants are not available to fill an open position, the General Manager shell have the authority to fill the position at a lower classification or pay level until such time as qualified applicants are available. IV. PROBATIONARY EMPLOYEES Section 6 ·. •~,;i~i\W\'~ .~ . '.,ll;I . •k1.P.JM~M,~h-· • • • ~ · l1;"~· . . e . . , · J).§..~'!tii;A II . -~"l..."':.!'W~1-·•Y°..V~~~l!iliile*-""•l:i!~w~-· ~=~~u·~~~~rm-•-·~, # •• 111!~~"'' •1· persons ::mpl~yed ,· byri~oi~lrtcf~ •' ~~art~-d~:m:fpro'b:t,on:ry'~:mploye'~-~ .for''aA p~rlo~"'~ she months from the date or hire. The probationary period may be extended by the Districts for cause by advising the employee prior to the expiration of the six-month period. Said cause shall relate to the need for a further assessment of the indlvidual's abilities to satisfactorily perfonn the duties requfred for their Job Classification. Probationary employees are not deemed to be regular, full-time employees until completion of the probationary period and may be l8FfftiRalea8jj by the Districts at any time during the probationary period and without csuse. Said employees shall serve at the will of the Districts during this period. In the event of teFMrnationffitJli! of a probationary employee, the employee shall not be entitled to receive any severance pay. lf!.l~i~!i~fffjj!~t.Hf-1 Aj11 provisions of this Resolution shall apply to probationary employees, withthe exception of the Article on Severance Pay. Said employees are also not deemed to be members of employee representative organizations. V. COMPENSATION Section' 7. Non-Exempt employees shall be compensated at an hourly rate within the salary range authorized for the classification in which they are employed as set forth in Exhibits "8-1" through "B~r ·3nd "B-Q11• Exempt employees shell be compensated at a monthly rate within the salary range authorized for the classification in which they are employed as set forth in Exhibits ns.§" throug~ "~f. Section 8, Salary offers beyond the midpoint or a range require prior approval by the ; .. l(·'.j·'\~··•-,• ~~>'c~•-:,;r·<t;:;.i-«::l:!""""~'1'•'111ifl:c~::,:~~~ .. ~ll,~~A'~•'!:I:~~-··~;i'~)<:j)::i:;=~••,:,:7#/J, .. ~_.:-.:.••;:,~~ ., : ·Ii ': 1ll,l,a:f,li · , ., ,,.~emr:~~;:~t:'i?.Q:~1,,1: · nrH,U!iW,:,Y.P;~~-~f,l~f.w:;~~~hi..t:,\U . ~:•,~~:~[,t:~v:iei,-~v,t,•m~~ .. ia:S ·,hJrifflsp"iiiftt\~eI<i~l '~3'~Ml;:;~~8i~5Ntm~va~~tr . ~i:;,~rrt&'ri~~l~ta .. · · ii':,~~,; ·f i-illJiif :'il;f-::J~;,;:gi-: .::l::i{p:~~ar'ffiiif:~;!';~p~;ltR}Jlrtrt~«:,,;JB}°~"l:-~t2 '..i;~-Ft';i, ,.. .. : ;jr-n1,''· ,;;,i!t-\~,1·· -:::i,:~'..;,;,,;,t~;=J}5\~'i~',~!i-1.f ;cf;lLr~t;i)¼';::,_~t11im~1!~~:-s1 .f~Po~'•t~f~)~~~,~t;,;!~s·~~ ,:lPt·.,,,;;l. ;~);, CL ,1·~.11~.r~~@gr;;J::;r,~9~11~~~~;~:r.;;;:·\!l~!i,~~p!;~ll,~0~~1\~ ·ctasi'i 1cat1o~f}ffl1h~J11 :;~:~ .... -,, ,, : '''"'-" "',· .. ww~~:rga!~ing units other th:an the Professiona~~ Supervise~~!)..:. :.;:,,,.;i . ~.,~ •• J~Jl§!f'l!ll!~"iffl Groups who successfully complete their Probationary ~enod and are recommended for continued employment as regular employees are eligible for oonsideration of a !ialary adjustment of up to one step (5.5%) effective on the first day of the pay period that follows the date of completion of the Probationary Period (normally 26 weeks). The Salary Review date for subsequent annual reviews is established as the first day of that pay period folloWing the date probation was successfully completed. 4 Section 9. Employees other than Professional, Supervisory and Executive Management lffl leb.11.in.lm who are not at the top of the salary range for their classification are eligible for cons1derat1on of an annual salary adjustment of up to one step (5.5%} on their Salary Review date, provided their performance satisfactorily meets expectations. Annual performance reviews shall be completed on a form provided by the Director of Human Resources.. :•:❖ Section 10. Employees who earn a promotion are entitled to a promotional increase of at least 5.5%, or to the base of the new range, which ever is greater, upon the effective date of the promotion. If an employee has not successfully completed his or her Promotional Probationary Period on their Salary Review date, any adjustment resulting from that annual review will be delayed until such time as the probationary period is completed. Promotions to classifications not in the Professional:~ Su erviso ~'fitf-C:::eg]lffe.]&finaS:':'"'me.5 . "':1.flt,;it''.❖'.•·~'f"".ffiiint Grou establish a fJ p ry!;.;.;,c,;-~;-;\v:❖:c❖;-;.;.;,;,:,,:-:-:-.-:❖:<<·C<❖-❖:<•:<-:«-;: rn,,,s,.,,,~,,!llilSJlt.,,.,.,.,-:-,.,,,.,, p new Salary Review date. Section 11. Employees who are hired into Professional, Supervisorw aM-Executive Management B?l&-ffllffl Group positions with "E" salary ranges shall be offered a salary at or near the mfri'imum offhe range unless their level of background, expertise or prior earnings result in a requirement for a salary greater than the minimum. The determination of an appropriate salary should also consider relationships to other employees in the same classification and to employees supervised, if any. §!§!ttt~!il!ln1:li~!ffi1jjfflij,.fffi!a\liiffl'.etff.tlll Elmployees in "E" range classifications serve a Probationary Period of six months and receive a comprehensive performance evaluation at the end of that eriod a~00~~:g+~~~ew:r.avt<f''''cii:'irP'\ii4·:·'~'i.~:r.<t~ft~W"~-,:"frF'·':·Y.»·1itF''.-·,!fflenl ··.'§i~ ~mployees \vho su~~1tii1~crn~~a'~''11,!rtp~!~t'~~@tle'❖/~;~~~~df~~;t!e~t"t'~~ subsequent July in accordance with the provisions of the Management Performance Review Program established by separate action of the Boards of Directors and as amended from time to time. E~1,,.,~R;~~!4t~1!@!:mmm:ll,(@}.,..B.Q..~9}bJw.l ·.~!ffiffl:~t•§i ~n annual performance review is completed for all employees in "E" range classifications in accordance with the provisions of the Management Performance Review Program. Performance based salary adjustments ff,W(_·1na ltn.Plff:~:t~ occur on the first day of the first pay period in July, and may be prorated base"cfupon the date of hire, promotion, or last increase in those instances where the individual has not concluded their probation as of July 1. Employees in "E" range classifications who earn promotions to a new "E" range classification will normally be offered a salary below the midpoint of the range that is commensurate with their level of training and expertise, prior earnings, and in an appropriate relationship to other employees in the same classification and to employees supervised. The new salary will normally represent an increase of at least 5.5 percent, but not exceed the third quartile of the range for the new classification. Employees in "E" range classifications are not entitled to a salary adjustment at the conclusion of the Promotional Probationary Period. If the employee's probation period has not concluded as of July 1, the performance based salary adjustment is deferred unt'il such time as P~t\U;lijf~i;,;;~iy concluded· mtili[Itlfl.Qtmltz~Jll!J:lffii:~1[:;i@pJJy1lffi1TuP!inl!llr{(~~~l!t1,M;! Section 12. In the event the duties and responsibilities of a position are allocated to a lower paid classification in the course of implementing the findings of a classification study, the salary of the incumbent of that position shall remain unchanged (Y-rated} in accordance with the following table: 2000-00019 17766_1 5 Years of Service 0-3 4-5 6-10 11 -20 20 or More Term of Y-rate 6 Months 1 year 2 years 3 years 4 years The Y-rate shall remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary, or until the term of the Y-rate expires in accordance with the table above. If the Y-rate expires before the employee's salary falls within the range of the new classification, the employee shall be placed on the step of the new range nearest but not more than the Y-rated salary. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. Employees who request a voluntary reduction are not entitled to a Y-rate. ffiffl,-•~fflffiiDl&W.#tliiiiflili!i@:ffl!Jl'.fflrm.1!1118!i!e~1tJ VI. OVERTIME PAY-NON-EXEMPT EMPLOYEES Section 13. Non-exempt employees who qualify for overtime compensation for work beyond their normal schedule shall, at the employee's discretion, either be paid one-and-a-half times their regular rate of pay, or be granted compensatory time off ("CTO") at the rate of one-and-one-half hour for every hour worked for up to 30 hours worked per calendar year. Such CTO must be scheduled off during the year in which it is earned. All overtime hours worked in excess of thirty per calendar year shall, at the discretion of Districts' management, either be paid at one-and-one-half times the regular rate of pay, or by compensatory time off at the rate of one-and-one-half hours for every hour worked. Normally, employees who accumulate in excess of fifty hours compensatory time off, without regard to the elective compensatory time off referred to in the preceding paragraph, will be scheduled to take such time off or be paid for the excess accumulated compensatory time off at the discretion of the Districts' management. For good reason, the Department Head, with the concurrence of the Director of Human Resources, may allow compensatory time to be accumulated in excess of fifty hours. When an employee's work schedule requires that they work on an observed holiday, the employee may opt to be paid at two-and-one-half times their regular rate of pay for the holiday or to be paid at one-and-one-half times their regular rate and receive an amount of Holiday Compensatory Time Off equivalent to the number of hours in the shift. Normally, employees that accumulate in excess of fifty hours of Holiday Compensatory Time Off will be scheduled to take such excess time off or be paid for the excess accumulated Holiday Compensatory Time Off at the convenience of the Districts. For good reason, the Department Head, with the concurrence of the Director of Human Resources, may allow Holiday Compensatory Time Off to be accumulated in excess of fifty hours. VII. ADDITIONAL COMPENSATION -EXEMPT EMPLOYEES Section 14. Employees in the Professional~ Supervisori~iiJIYl.ilill®.ma~i~fi.it~f~il. -miijl Groups will be eligible to receive additional compensatiori"affli:rr·reij"i:ilatfifkor ·F;;-ay for perforrrnng extraordinary service of at least four hours with regard to activities of a prolonged nature involving: major non-emergency facilities failures or shutdowns; major tie-ins of newly constructed facilities; major start-ups of new facilities or systems; major special projects or assigned work when a substantial effort must be expended to meet a compliance date or scheduled deadline. 2000-00019 17766_1 6 Employees in the E>Eeouti¥o Management, Professional and Supef\liso,yf!ffl[e.$.$ilrn•f .-•~~i Exitr·--1~«---x:=-,--,\:-=-=--·=nt~in~~~nf Grou s will be eli ible to receive'-'a'cichti~I co~~;~~ ~<J!t,-,_-,,,~J!S!!llf.~';'·>¥~~,JJJ.W@.?PJ:~t}~;tk-:-, p g p at one and one-half times their regular rate of pay for performing the following extraordinary services: work required by a major facilities failure or necessity to protect public health and safety caused by an emergency declared as such by the General Manager or their designee; work which becomes necessary to cover a regularly assigned shift which falls on an otherwise non-work day or shift. Written authorization to receive compensation for all such extraordinary service must be obtained in advance, except in the event such approval is precluded by the nature of the emergency. The authorization must be signed by the General Manager, a Department Head or their designee, and set forth the work to be accomplished, the reason such work is required, the anticipated hours and eligibility for additional compensation. All authorized extraordinary service time worked must be reported on a form designated by the Director of Human Resources as well as the employee's time report. Employees who have received approval for extraordinary service may elect to receive Compensatory Time Off in lieu of additional compensation on an hour-for-hour basis. Normally, employees who accumulate in excess of fifty hours of CTO will be scheduled to take such excess time off at the convenience of the Districts. Except for performing extraordinary services as defined above, Professional, Supervisoryf--aFHi Executive Management ~lffl'JlJ511~ij~Jf~§lffl Group employees are not entitled to receive any compensation or Compensatory Time Off for service rendered beyond their normal work schedule. VIII. SHIFT DIFFERENTIAL PAY Section 15. Employees who are assigned to work an a.m. shift of at least seven consecutive hours, at least four hours of which fall between 0000 hours and 0600 hours, shall receive a shift differential of $1.25 per hour for all such hours actually worked. Similarly, employees who are assigned to work a p.m. shift of at least seven consecutive hours, at least four of which fall between 1800 hours and 2400 hours, shall receive a shift differential of $1.00 per hour for all such hours actually worked. Employees working 12-hour shifts are entitled to $1.50 per hour for the a.m. shift and $1.12 per hour for the p.m. shift effective 11-25-94, and $1.75 per hour for the a.m. shift and $1.25 per hour for the p.m. shift effective 11-24-95. IX. STANDBY PAY Section 16. Standby is time during which an employee is not required to be at the work location or at the employee's residence but is required to be available for immediate return to work. Standby assignments shall first be made on a voluntary basis. Except for "E" range employees, an employee placed on standby shall be compensated at the rate of $100 per week, and will receive Call Back Pay when actually called to work. X. CALL BACK PAY Section 17. Except for "E" range employees, when an employee is called back to work by the Districts' without prior notice, and the employee has completed his or her normal work shift and left the plant, or when prior notice is given but the work begins on the same day at least three hours after completion of the regular shift, the employee shall receive a minimum of three hours of call 2000-00019 17766_1 7 back pay. The three hours minimum, whether or not actually worked, shall be paid at the rate of one and one half times the regular hourly rate. Employees who are called back a second time within a normal shift period are considered to be working for the duration of that shift. XI. WORKING OUT OF CLASS PAY Section 18. Employees who are temporarily assigned by Districts' management to perform the duties of a higher level classification for a period of at least 200 hours may be eligible for a one step salary increase, or the first step of the range for the higher level classification, whichever is greater. The higher rate of pay begins with the 201 st hour, and continues until the assignment ends. Requests for Working Out of Class pay require the approval of the Department Head and the Director of Human Resources. The 200 hour eligibility period may be waived at the discretion of the General Manager. XII. VACATION Section 19. Except as provided in the Personal Leave Article, regular full-time employees accrue vacation leave, beginning with the first day of employment, in accordance with the following schedule: Years of Service In Years O through 1 In Years 2 through 4 In Years 5 through 10 In Year 11 In Year 12 In Year 13 In Year 14 In Year 15 and over Hours -Biweekly 3.08 3.08 4.62 4.93 5.24 5.54 5.85 6.16 Hours -Annual 80 80 120 128 136 144 152 160 Vacation leave begins accruing with the first day of employment, but employees are not eligible to schedule vacation time off until the completion of one year's continuous service. Vacation leave may only be utilized in increments of one-half hour or more. Vacation leave is accrued for all paid hours, including hours actually worked and hours in a paid-leave payroll status. Unless special approval is granted in advance for good cause by both the employee's Department Head and the Director of Human Resources, employees may have a maximum accumulation of 200 hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of 200 hours, it must be used prior to said December date, all other remaining hours in excess of 200 will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. XIII. SICK LEAVE Section 20. Except as provided in the Personal Leave Article, regular full-time employees hired prior to November 27, 1981, accrue paid sick leave at the rate of 3.5 hours for each biweekly pay period of continuous service (91 hours per year) not to exceed 651 hours. Regular full-time employees hired on or after November 17, 1981, accrue paid sick leave at the rate of 3.0 hours for each biweekly pay period of continuous service (78 hours per year) not to exceed 638 hours, beginning with the first day of employment. 2000-00019 17766_1 8 ( =------- 1 Employees may have a maximum accumulation of 651 hours (or 638 hours as provided above) as of the last day of the final pay period in December of each year. In the oyont an employee aeorues siok lea1,•e in o:iEoess of 560 hours, it must be used prior to said Deoemeer date. All etRef remaining hours in excess of 560 will be paid to the employee in the first pay period in January at a rate of 50 percent of the employee's then current hourly rate of compensation. Section 21. Notwithstanding the provisions of Section 20 above, employees may elect annually to be paid for any unused sick leave hours accrued through the last day of the last pay period ending in December of each year at their current hourly rate according to the following payoff schedule: Accrued Sick Leave Hours 0-100 101-240 241-560 Rate of Payoff 0% 25% 35% Section 22. Employees who terminate for any reason other than retirement or death will be compensated for any accrued and unused sick leave according to the above schedule. Employees (or their estate) who retire for service or disability or die will be paid at the 50 percent rate for all accrued and unused sick leave. XIV. PERSONAL LEAVE Section 23. Personal Leave is accrued in lieu of any vacation or sick leave benefits by regular full- time employees in those job classifications currently represented by the Operations and Maintenance bargaining unit (Exhibit "B-4"), as provided in an approved Memorandum of Understanding, or upon expiration thereof, for all paid hours, including hours actually worked and hours in a paid-leave payroll status, on a bi-weekly basis as follows: * Years of Service O through 1 2 through 4 5 through 10 11 12 13 14 15 and over Personal Leave Hours Biweekly Annual 2.31 5.38 6.92 7.23 7.54 7.85 8.15 8.46 80* 140 180 188 196 204 212 220 Only 60 hours may be taken in the first year; the 20 additional hours will be credited to the accrual balance following successful completion of one year's service. Section 24. Employees may have a maximum accumulation of 400 hours of Personal Leave as of the last day of the final pay period in December of each year. In the event an employee accrues Personal Leave hours in excess of 400, they must be taken as scheduled leave prior to said December date. All other remaining hours in excess of 400 will be paid to the employee in the first pay period of January at the employee's then current hourly rate of compensation. Regular full-time employees (or their estate) who terminate, retire or die will be paid in full at the employee's then current hourly rate of compensation for all Personal leave hours accrued. 2000-00019 17766_1 9 Section 25. Employees who elected to bank accrued sick leave prior to the implementation of Personal Leave provisions may elect to use such time off for absence due to illness or injury once 40 consecutive hours of Personal Leave have been used. Employees (or their estate} who retire for service or disability or die will be paid at the 50 percent rate for all Banked Sick Leave hours; an employee who terminates will be compensated for Banked Sick Leave as follows: Banked Sick Leave Hours 0-100 101-240 241 -560 over560 Rate of Payoff 0 percent 25 percent 35 percent 50 percent Employees may elect to bank the dollar equivalent of up to 400 hours of Personal Leave accrued while in a job classification subject to the Personal Leave provisions of the Operations and Maintenance Memorandum of Understanding upon their promotion or transfer from such classification. Time subsequently withdrawn from the bank will be charged at the employee's hourly rate in effect at the time of the withdrawal. Employees who retire or decease will be paid their Personal Leave Fund balance in full. XV. CONFERRAL OF LEAVE Employees may, on a one-time basis and in accordance with the provisions of the Districts' Policy regarding Conferral of Paid Leave, elect to donate accrued and unused Personnel Leave, Vacation Leave or Compensatory Time Off to an individual employee who has depleted their own paid leave as a direct result of a catastrophic medical condition. All such time must be conferred on a form provided by the Director of Personnel. XVI. WORKERS COMPENSATION LEAVE Section 26. Employees who are injured in the course of their employment are placed on Workers' Compensation Leave, and receive wage loss benefits to which they are entitled under the Workers' Compensation Act. Employees may request to receive prorated Personal Leave, Sick Leave or Vacation pay to supplement their Workers' Compensation payments in an amount such that the sum of both is equal to the employee's regular base pay. XVII. JURY DUTY Section 27. Employees called for jury duty will be granted a leave of absence with pay for the actual time spent on jury service, less the amount of any jury duty pay received, exclusive of mileage. A copy of the jury notice must be provided to the employee's supervisor and the Human Resource Office. Employees must report for work during their regularly scheduled work shift when they are relieved from jury duty. XVIII. WITNESS LEAVE Section 28. Employees shall be granted leaves of absence to serve as witnesses in accordance with the provisions of California Government Code Sections 1230 and 1230.1. 2000-00019 17766_1 10 XIX. MILITARY LEAVE OF ABSENCE Sect'ion 29. In accordance with the provisions of the Military and Veterans Code, employees who are recalled to active service in the Armed Forces of the United States, the National Guard or who are required to fulfill obligations as members of a Military Reserve Unit, will be granted a Military Leave of Absence. While on Military Leave, employees will be paid their regular base pay for up to 30 calendar days. Upon an employee's return to the Districts, all benefit privileges, position, salary and seniority will be restored as if the employee had not been absent in accordance with federal and state law. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity, but may have their regular work schedule changed to accommodate the required time off based on operational needs of the Districts. XX. LEAVE OF ABSENCE WITHOUT PAY Section 30. Employees may request a Leave of Absence Without Pay for up to one year to pursue a formal course of study or for other acceptable personal reasons. Requests must be submitted in writing, and must specifically state the reason for the request and the dates of anticipated absence. All requests are subject to approval by the employee's Department Head and the Director of Human Resources. Section 31. Employees must provide two weeks notice prior to the date they expect to return from an approved Leave of Absence Without Pay. Employees who do not provide such notice may not be permitted to return to the same position held prior to the leave period. Employees who, without notice or explanation, do not return to work on the date specified at the end of the period will be deemed to have voluntarily terminated. XXI. MEDICAL AND FAMILY LEAVE Section 32. Under the provisions of the federal Family and Medical Leave Act of 1993, upon completing one year of employment with the Districts and at least 1250 hours of service, employees are entitled to 12 weeks of unpaid family or medical leave in a 12 month period for three reasons: the birth or adoption of a child; to provide care during a serious health condition of their child, parent or spouse; or because of the employee's own serious health condition. Section 33. In the case of leaves for foreseeable events such as the expected birth of a child or a planned medical treatment, an employee must provide notice at least 30 calendar days in advance. For unforeseeable events, notice is requested as soon as need for the leave is learned or notice is practicable. Employees are entitled to intermittent leaves not to exceed an aggregate greater than 12 weeks only when such leave is medically necessary to provide care during periods of serious illness of an employee's child, parent or spouse. Employees whose spouse is also employed by the Districts are entitled to an aggregate of 12 weeks' leave during a 12 month period to care for a newly arrived child or sick parent. If the leave is requested because of the illness of a child or of the other spouse, each spouse is entitled to 12 weeks of leave. Section 34. A request for medical leave should be accompanied by certification from the health care provider of the child, parent, spouse or the employee who has a serious health condition indicating: the date the condition began; the probable duration of the condition; appropriate medical facts regarding the condition; a statement that the employee will be unable to perform their regular functions because of the need to provide or receive care; and, in the case of intermittent leave, the dates and duration of the treatments to be given. 2000-00019 17766_1 11 Section 35. Employees who take Family and Medical Leave are guaranteed reinstatement to the same or to a comparable position at the end of the leave period, and continue to receive the same group health plan coverage and benefits during the leave as if they were continuing to work. Employees may elect, or Districts' management may require, that paid leave including sick, vacation, personal, or accrued compensatory time off be applied towards the unpaid Family and Medical Leave. XXII. BEREAVEMENT LEAVE Section 36. An employee who is compelled to be absent from work because of the death or imminent death of either father, mother, grandparent, foster parent, step parent, mother-in-law, father-in-law, brother, sister, wife, husband, child, grandchild or stepchild shall be entitled to a maximum of three working days leave with pay in addition to any other leave benefits provided herein. XXIII. HOLIDAYS Section 37. The days listed below are observed by the Districts as holidays. Regular full-time employees will receive holiday pay if their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status. When a holiday falls on a regularly scheduled day off for an employee entitled to receive holiday pay the employee shall be entitled to equivalent time off with pay. When an employee's work schedule requires that they work on an observed holiday, the employee will be paid at their regular rate of pay for the holiday, and will also receive overtime pay at the rate of one and one-half times their regular hourly rate for all hours actually worked. Lincoln's Birthday President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day After Thanksgiving Day Before Christmas Christmas New Years' Day Floating Holiday XXIV. INSURANCE Section 38. The Districts shall provide medical-health insurance coverage through both Health Maintenance Organizations and an indemnity plan, which at the Districts' discretion may be self- funded or insured, in accordance with the level of benefits provided in the plans in effect as of the date of adoption of this resolution, together with life insurance, and disability insurance for the benefit of regular full-time employees. All insurance coverage shall become effective on the first day of the month following one full month of employment. An open enrollment period will be held annually in the month of June. 2000-00019 17766_1 12 Section 39. The Districts will contribute up to the following amounts monthly towards the medical health plans: Plan NORTHWESTERN NATIONAL LIFE Employee only Employee & 1 dependent Full Family FHP Employee only Employee & 1 dependent Full Family KAISER Employee only Employee & 1 dependent Full Family Districts' Contribution $338.62 $477.92 $653.96 $134.65 $215.00 $275.00 $136.62 $215.00 $275.00 All costs of group health insurance coverage in excess of the Districts' contribution shall be paid by the employee. Section 40. Any change in insurance rates caused by a carrier after 11-25-94 are subject to the applicable provisions of the various Memoranda of Understanding approved by the Boards of Directors. Section 41. The Districts shall provide and pay the full premium for $50,000 term life insurance on each employee in the Professional, Supervisor-4 aAEI-Executive Management lftfJMm:almll Groups, and the full premium for $15,000 for all other employees. Section 42. The Districts shall provide a non-work related, short-term disability indemnity plan that pays up to $336 per week for up to 26 weeks following a fourteen calendar day waiting period. Employees may request to receive prorated Sick Leave, Personal Leave or Vacation pay to supplement their short term disability payments in an amount such that the sum of both is equal to the employee's regular base pay. Section 43. At such time that an employee completes five years of service, the Districts shall provide a non-work related, long-term disability indemnity plan that pays two-thirds of the employee's rate of pay in effect at the time of such disability, not to exceed $5,000 per month, for up to two years, following a 90-day waiting period of continuous disability. No combination of disability and sick, personal or vacation leave pay shall result in more than an employee's regular rate of pay. Employees may not receive short-term and long-term disability benefits at the same time. An employee who is otherwise not eligible for Districts' paid Long Term Disability may purchase such coverage at their own expense. Section 44. The Districts shall provide dental insurance coverage. Employees shall contribute the following monthly costs for the Districts' Self-Funded Dental Plan: $0.00 for employee only coverage; and, $9.00 for full family coverage. Section 45. The Districts will pay, for employees hired prior to July 1, 1988, two and one-half months' premium for each year of continuous service of an employee retiring for service, work or 2000-00019 17766_1 13 non-work related disability towards the premium costs of coverage for the employee and eligible dependents under a Districts' medical plan. Section 46. The Districts reserve the right to unilaterally change plan providers. In the event the Districts add additional optional insurance plans, the Districts' share of the premium will be the same as for existing plans as set forth in Section 39 above. In the event the Districts change underwriters for existing insurance plans, the Districts' share of the premium will be the same as for existing insurance plans as set forth in Section 39 above. Section 47. The Districts &Ra» f.("~&'ij entet! into an agreement with the Orange County Employee Retirement System (OCERS) to implement the retiree medical health premium offset program established by the County of Orange wherein the cost of health premiums are offset by $10 per month for every year of service up to a maximum of 25 years or $250 per month. Upon the effective date of the agreement, each employee will pay one percent of his or her salary to OCERS to fund the above program. Section 48. Employees who have payroll deductions for medical and dental health insurance premiums shall be entitled to request that their salary be reduced by the amount of those deductions pursuant to Internal Revenue Code regulations. The amount deducted shall then be repaid to the employee through the Districts' Reimbursement Program. Participation in this program does not affect the Districts' contribution to the Orange County Employees Retirement System. XXV. DEFERRED COMPENSATION Section 49. Employees may participate in the Districts' deferred compensation plan, approved separately by the Boards of Directors, and amended from time to time, subject to all requirements for participation established by Districts' management. The minimum deposit per pay period is $25, and the total annual maximum deposit is $7,500 or 25 percent of gross salary, whichever is less, in accordance with IRS regulations and the Districts' plan. Section 50: The Districts will contribute towards an employee's Deferred Compensation Account as specifically provided in District Boards Joint Resolution No. i!il;87 113, which is summarized as follows: Classification Level Gen. Mgr. and Asst. Gen. Mgr. Department Head Asst. Department I-lead Executi•.«e Management~laR-a Professional and Supervisory Districts' Contribution Matching Non-Matching -0-$7500 3.0% 3.0% 2.0% 2.5¼ 1.0% 2.0% XXVI. BENEFITS OPTION PLANS ~:~!,i_~,~.-~2-. '"''Employees in the Professional, Supervisoryi ~Execu_tive Mana~ement i,fi, ffl~Ul~~lD! Groups who have successfully completed their Probationary Penod are entitled to participate in the Benefits Option Plan. Under the provisions of the Plan, Professional employees will be reimbursed for up to $500 annually, Supervisory employees up to $1000 annually and Executive Management · b~IMjij§ijftfffeffl employees up to $1250 annually iA W'-.,,.:::'<,))'1'••---·"···r······•:Mi:.tt~-~ accordance with applicable provisions of Memoranda of Understanding approved by the Boards 2000-00019 17766_1 14 Section 52. Professional Group employees are also entitled to tuition reimbursement of up to $250 annually for job related courses taken to meet changing job demands and to prepare for advancement within the Districts. Section 53. The Benefits Option Plan will be administered on a calendar year basis, and employees must designate expenditures by December 1 each year for the following year. Designations may not be modified during the year. Requests for reimbursement of expenses must be submitted on the appropriate Districts' form. Plan funds that are designated to offset insurance premium expenses may be paid directly to the appropriate plan provider on a monthly or pay period basis at the Districts' discretion. Section 54. Any funds that are not claimed in accordance with provisions of the Benefits Option Plan will be payable directly to the employee or credited to the employee's Deferred Compensation Account. XXVII. EXECUTIVE MANAGEMENT VEHICLE ALLOWANCE Section 55. In lieu of a leased vehicle for use in the performance of their duties, AssistantDepartment Heads and above shall be eligible, at the discretion of the General Manager, to receive a monthly vehicle allowance in an amount equal to $715 if hired prior to August 24, 1993, and $465 per month if hired after that date, except as otherwise authorized by the Boards, and as amended from time to time. Each employee receiving the vehicle allowance shall furnish at their cost all transportation needs in the performance of their duties within the Counties of Orange, Los Angeles, Riverside, San Bernardino, San Diego, Santa Barbara, Kem and Ventura. Such employees shall also furnish at least the following amounts of insurance coverage: Bodily Injury $100,000 each person; each occurrence $300,000; property damage $100,000. Employees receiving this allowance are prohibited from circumventing the intent and purpose of the allowance by obtaining the regular use of a District-owned vehicle in the performance of their duties. XXVIII. UNIFORMS Section 56. The Districts shall provide ten uniform pants and shirts, or three lab coats, bi- weekly at no cost for employees whose duties require that they wear uniforms. Coveralls shall also be available as required. Section 57. All employees who are issued uniforms must wear them during the performance of their regular duties. Other clothing appropriate to the occasion, as determined by Districts' management, may be worn when attending business meetings. Failure to wear required clothing, shoes and safety equipment may be cause for disciplinary action. XXIX. RETIREMENT Section 58. The Districts and its employees shall participate in the Orange County Employees Retirement System, wherein all eligible employees are considered members. The retirement program in effect pursuant to the contract between OCERS and the Districts as of December 2, 2000-00019 17766_1 15 1977, shall continue in effect unless amendments to contracts or termination of membership is effected by the Districts subsequent to meeting and conferring with recognized employee units concerning such proposed amendments or termination. Section 59. The Districts shall pay 4.5% of an eligible employee's base salary towards the employee's required contribution to the Orange County Employees Retirement System in addition to the Districts' payment of the employer's required contribution. All monies actually contributed into the retirement system by an employee will be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. XXX. SEVERANCE PAY Section 60. Employees are required to give a minimum of two weeks written notification when terminating employment with the Districts. When a full-time regular employee is terminated by action of the Districts, except for disoiplinarycause, the employee will be notified in writing two weeks prior to the effective separation date. In the event such notification is not given, the employee shall be entitled to severance pay in accordance with the formula set forth below: a. Full-time regular employees shall be entitled to six hours pay for each full calendar month of continuous employment not to exceed eighty hours pay, or as may be determined by the General Manager. b. Employees in temporary or part-time classifications, and employees who are separated for cause, are not eligible for severance pay under any circumstances. XXXI. WORKING HOURS Section 61. The mission of the Districts requires that operations and maintenance activities be carried out on a continuous basis. Administrative and business functions are normally performed between the hours of 7:30 a.m. and 5:30 p.m. Monday through Thursday, and until 4:30 p.m. on Friday. Activities and services that involve contact with the public or outside organizations will be performed during those hours. In addition, individual divisions may schedule work beyond those hours, subject to approval by the Department Head to meet specific operating or service requirements in the most cost effective or efficient manner. Section 62. For time record keeping and accounting purposes, the work schedule for full-time employees is established as forty hours per week based on a bi-weekly payroll period of eighty hours. The actual work periods may be scheduled in shifts of five eight hour days each week (10/80 schedule), four nine hour days each week and one addition eight hour shift on alternate weeks (9/80 schedule) or four ten hour days each week (8/80 schedule). Operations employees may work three twelve hour shifts each week and one additional eight hour shift on alternate weeks (7/80 schedule). Day shifts typically begin between 6:30 and 7:30 a.m. However, actual starting and ending times may vary depending on operational requirements of each department. Work hours may also be varied, subject to minimum staffing requirements, to allow for individual circumstances such as ridesharing. XXXII. LAYOFF PROCEDURE Section 63. If, in the sole discretion of Districts' management, Human Resource reductions are necessary, layoff order and recall lists will be developed based upon job classification, priority of 2000-00019 17766_1 16 function, individual qualifications and seniority within the job classification. Employees subject to layoff will be provided with notification in accordance with the provisions of the Worker Adjustment and Retraining Notification Act. Section 64. Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such request must be made in writing to the Human Resource Department within five days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes will be unchanged, except that it may not exceed the top step of the range for the lower level classification. Section 65. Recall lists will be developed for all classifications experiencing personnel reductions, and will be maintained for a period of two years from the date of the layoff. Individuals will be placed on the list in the inverse order of layoff, so that the last person laid off is the first recalled. When a vacancy occurs in a classification for which a Recall List exists, an offer of reemployment will be made to the individual on the top of the list. That individual must respond to the offer within five days, or the offer will be made to the next person on the list. An individual who either does not respond or refuses three consecutive offers will have their name removed from the list. XXXIII. DISCIPLINE Section 66. The General Manager is authorized and directed to exercise supervision over all employees and to impose disciplinary aationsffl~-R!liii.g, for just cause, upon any person employed under the provisions of this Resolut1on·:···ttie General Manager shall establish rules and guidelines pertaining to the procedures governing such actions. The General Manager is authorized to delegate his authority herein to Department Heads, Division Managers, Director of Human Resources and other management and supervisory employees as the General Manager .m:,ii~;r•;i · · ·:·,,,1111!1;iM:tit ... -1111t~:{~lii-•It&l~ Section 67. Discipline occurs when any of the following progressi\•eactions are taken for just cause with respect to any employee: oral reprimand, counseling memo, written warning, suspension with or without pay, deferral or denial of a merit increase, reduction in pay, demotion to a classification with a lower top step of pay, or dismissal. Dismissal is the separation from Districts employment of a non-probationary employee initiated by the Districts for proper cause. Section 68. A Notice of Intent t,1a111~~t~libBl ll\1f is not required when the disciplinary action involves an oral reprimand, counseling memo, written warning or suspension for five or fewer working days (with or without pay) or deferral or denial of a merit increase. Section 69. A Notice of Intent !lim'.lilit#Ii,§[il!!lll:11111 is required and will be given to an employee whenever the disciplinary action involves suspension for more than five working days, reduction in pay, demotion to a classification with a lower top step of pay or dismissal. The notioe §l&l@!!;,'§f~!til~!ll shall be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. The Notice of Intent shall indicate the date on which it was personally delivered or deposited in the mail, which shall be the date of issuance. The Notice of Intent shall contain a description of the disciplinary action intended, the effective date of the action, the reasons for the proposed action, and a copy of the charges and materials upon which the action is based. The Notice shall also provide a statement of the employee's right to respond, either orally or in writing to the authority initially imposing the discipline, the 2000-00019 17766_1 17 person to whom any response must be directed, and the fact that such response must be received within ten business days of the date of issuance of the notice. The Notice will also advise the employee of their right to representation. Section 70. Prior to the effective date of tAe in , proposed disciplinary action f,ig!]Ufirfd~1&~ ~Jnt~1It the employee will be given an opportunity to respond either orally orTn ·wrlffrig'"to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response, the Districts will notify the employee in writing of any action to be taken. Such action may not involve discipline more severe than that described in the Notice of Intent; however, the Districts may reduce discipline without further notice. Section 71. Dismissal shall be preceded by at least one written warning, except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve, but is not limited to: dishonesty, possession, use, sale or being under the influence of drugs or alcohol, theft or misappropriation of Districts' property, falsification of time records, fighting on the job, insubordination, acts endangering people or property, or other serious misconduct. The Districts may substitute documented suspensions with or without pay for written warnings. Section 72. If a Notice of Intent is upheld and the disciplinary action is imposed, the employee may request a post disciplinary hearing. The request must be submitted to the Director of Human Resources within ten business days following the effective date of the disciplinary action (for suspensions, the effective date shall be the first business day of the suspension). The Director of Human Resources shall schedule a post disciplinary hearing with the General Manager or his designee. The General Manager, or his designee, may uphold the disciplinary action which has been taken or may reduce such discipline without the issuance of further notice. The decision of the General Manager or his designee shall be final. Section 73. The Districts may place an employee on investigatory leave without prior notice in order to review or investigate allegations of conduct which, in the Districts' view, would warrant relieving the employee immediately from all work duties. If, upon conclusion of the investigation, neither suspension without pay nor dismissal is determined by the Districts to be appropriate, the employee shall be paid for the leave. Although an investigatory leave may exceed fifteen business days, if a suspension without pay is determined to be the appropriate discipline, a maximum of fifteen business days of the investigatory leave period may be applied to such suspension without pay. If dismissal is determined by the Districts to be appropriate, the entire investigatory leave period shall be without pay. Section 74. Disciplinary action documentation shall be placed in the employee's Personnel File in the Human Resource Office. Counseling memos and warning letters may be removed from that file twenty four months subsequent to the date of the memo or letter, provided there has been no reoccurrence of a similar nature during the period. XXXIV. GRIEVANCE PROCEDURE Section 75. A grievance is any charge that management has violated a specific provision of a Memorandum of Understandingor of this rosoh,:1tion. Discipline imposed i::IR8efllnder Article ~~n is not reviewable as a grievance under this procedure. Section 76. A grievance may be brought to the attention of the Districts by an individual employee or by a recognized employee organization. A grievance may not be brought by the 2000-00019 17766_1 18 Districts through this procedure. Grievances brought by two or more employees, and concerning the same incident, issue, or course of conduct, or multiple grievances brought by the same employee may, upon mutual agreement of the Districts and an employee organization, be consolidated for the purposes of this procedure. An employee shall have the right to be represented at all steps of the Grievance Procedure by any other employee within the bargaining group or representative of the recognized employee organization. Any reference to days in this article implies business days. Step 1. An employee who has a complaint shall attempt to resolve it with their immediate supervisor within five days of the occurrence of the event giving rise to the complaint. The supervisor shall attempt to resolve the issues surrounding the complaint, and respond to the employee within five days. Step 2. If the grievance is not settled informally at Step 1, it may be presented in writing to the employee's Department Head or designee. This request for formal review must be presented on a form provided by the Districts within five days of the conclusion of Step 1. The written grievance must: a. Identify the specific management act to be reviewed; b. Specify how the employee was adversely affected; c. List the specific provisions of the MOU that were allegedly violated, and state how they were violated; d. Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. The Department Head or his or her designee shall respond in writing to the employee within ten days after the date the grievance is received. Step 3. If a grievance is not settled under Step 1 or 2, it may be presented to the Director of Human Resources for review and written response. The request for formal review must be presented on a form provided by the Districts within ten days of the conclusion of Step 1 or 2, and must contain the information specified in Step 2 above. The Director of Human Resources, or designee, shall respond in writing to the employee within ten days after the date the grievance is received. Step 4. If the grievance cannot be resolved under Step 3, it may be presented to the General Manager within ten days from the date the Step 3 finding was issued. The General Manager, or designee, shall respond in writing to the employee within fifteen days after the date the grievance is received. The action of the General ~~it is deemed final. Section 77. General Provisions. An employee shall be given reasonable time off, with advance approval of his or her supervisor, to investigate and process a grievance. When an employee is represented by a recognized employee organization, that organization may designate one employee to investigate and process the grievance. The employee representative shall be given reasonable time off, with the advance approval of his or her supervisor, to perform this duty. Time off for investigating and processing a grievance shall be without loss of pay. Absence from work will be approved only if it does not disrupt the Districts' operations. If the time requested cannot be provided, another time will be arranged. Failure of a supervisor, Department Head or other management representative to respond within the prescribed time limit shall provide a basis for the employee to appeal to the next step. If a grievance is not presented or appealed within the time limits, it shall be considered settled 2000-00019 17766_1 19 on the basis of the preceding response. The Director of Human Resources may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. Time limits may also be extended at any step upon mutual agreement of the parties. XXXV. PROBLEM SOLVING PROCEDURE Section 78. Employees may bring problems to the attention of Districts' managers through the Problem Solving Procedure. This procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner, and may be used to attempt to resolve issues which may not be subjectea to the Grievance Procedure. Employees should discuss concerns regarding issues which are not grievable with their supervisor as soon as possible. The supervisor will review the situation or decision, and provide a written response within five days of the date they were notified of the problem. If the problem is not resolved to the employee's satisfaction, they may file a written statement concerning the problem with the Director of Human Resources within ten days of receipt of the supervisor's decision. Upon request of either party, a meeting will be held to define issues and establish the remedies sought. The employee will be provided a written response within ten days after their statement is received. Time limits may be extended for cause upon mutual consent of the parties, and the decision of the Director of Human Resources is final. XXXVI. ATTENDANCE Section 79. Prompt and regular attendance is required in order to maintain effective and efficient Districts' operations. For that reason, all employees are expected to report to work as scheduled unless proper arrangements have been made for authorized absence. Section 80 . Supervisors are responsible for ensuring that employees observe the Districts' need for prompt and regular attendance. They are also responsible for providing counseling at each step of this procedure, including referring employees to the Human Resource Department or Employee Assistance Program for help in dealing with medical, physical, or personal difficulties related to their attendance problem. All of the facts and circumstances surrounding an employee's inability to report for work should be considered in the counseling process, including the employee's performance, overall attendance, reasons for missing work and prospects for improvement. While the Districts' need for prompt and regular attendance of all employees is of utmost importance, it is equally important to recognize individual employee needs in a fair and impartial manner. Section 81. Employees must notify their supervisor of their inability to report for work as scheduled as far in advance as possible, and in no case later than the regular start time. Employees will be considered late, charged with a partial absence, and have their pay adjusted accordingly if they arrive for work more than fifteen minutes after their start time unless other arrangements are made. Tardiness is not acceptable from a performance standpoint, and should be addressed through a program of progressive discipline. Section 82. Employees may also be charged with a partial absence, and have their pay adjusted accordingly, if they leave work early. The notification of absence should include a reasonable explanation and an estimate of when the employee expects to be able to return. The Districts may require medical documentation of any absence due to illness or injury, particularly when there is an indication that abuse of time off privileges may exist. 2000-00019 1TT66_1 20 Section 83. An absence will be recorded for all unscheduled Personal Leave time off or sick leave use. However, absences of more than one consecutive day for the same injury or illness will be treated as a single occurrence. Once an employee has accumulated five separate unscheduled absence occurrences within a calendar year, which may involve more than five days due to absences of more than one day's duration, their supervisor will meet with them to discuss the reasons for the absences and the Districts' need for regular attendance. The accumulation of seven occurrences of absence within a twelve month period will result in a verbal warning. The eighth occurrence will result in a written warning. Employees who are charged with ten occurrences of absence within the twelve month period will be subject to termination. Section 84. Employees who have perfect attendance for a period of two consecutive months may have one absence occurrence removed from their accumulation record for counseling purposes only. Up to three occurrences may be removed in this manner for a total of six months of perfect attendance. XXXVII. MEDICAL EXAMINATION Section 85. All offers of employment are contingent upon successful completion of a pre- employment physical examination, including a drug screening test. Offers of employment will not be extended to individuals who fail to pass the drug screen test. However, such individuals may be considered for other employment opportunities after a six month period has elapsed. Examinations are provided by the Districts at no cost to the applicant. Section 86. When there is reasonable evidence to suggest that an employee is impaired in a manner which endangers his or her own health or safety, or that of others, the Districts may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related. Any examination under this provision will be conducted on Districts' time and at Districts' expense. An employee may submit an independent medical opinion regarding his or her condition and addressing his or her ability to competently perform the duties of their position. This information will be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. XXXVIII. LIGHT DUTY Section 87. An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of the Districts. Light duty may consist of duties other than those normally performed by the employee. An employee assigned to light duty shall be paid the regular wage rate for the job classification held prior to being temporarily disabled. XXXIX. SUBSTANCE ABUSE Section 88. The mission of the Districts, and its concern for the safety and well-being of employees and the public, provide for a strong commitment to maintaining a drug and alcohol free workplace. In support of that commitment, the Districts will not tolerate the unlawful or unauthorized manufacture, sale, possession, distribution, use or being under the influence of a controlled substance or alcohol while on the job or on Districts' property. 2000-00019 17766_1 21 Section 89. Any employee who is reasonably suspected of controlled substance or alcohol use which adversely impacts their job performance or behavior, or who manufactures, possesses, consumes, sells, or distributes controlled substances or alcohol on Districts' property or while on Districts' business, will be required to undergo testing for controlled substance or alcohol use. Reasonable suspicion of the use of or being under the influence of a controlled substance or alcohol may be based on appropriate factors, including excessive absenteeism or attendance problems, poor work performance or erratic behavior coupled with one or more of the following signs: bloodshot or water eyes; very large or very small pupils, runny nose, excessive perspiration, nausea and vomiting, lack of coordination, slurred speech, or unpredictable responses to ordinary requests. Section 90. Employees found to be under the influence of controlled substances or alcohol while on Districts' property or on Districts' business, or who otherwise violate the Districts' Substance Abuse Policy, will be placed on a Leave of Absence and referred to the Employee Assistance Program for evaluation. Return to work will be contingent upon successful completion of a rehabilitation program and a thorough assessment of the particular circumstances concerning the abuse. An employee who chooses not to participate in the rehabilitation program, or in the drug and alcohol screening test, or who tampers with the test specimen, will be subject to disciplinary action including, but not limited to, termination. Any employee who successfully completes a rehabilitation program and is subsequently found to be in violation of the Substance Abuse Policy, will be terminated from employment with the Districts without further rehabilitative effort. Section 91. Controlled substances are those substances defined as such in the Federal Controlled Substance Act or the California Health and Safety Code. All testing procedures will be in conformance with National Institute on Drug Abuse standards, and will be conducted at a reasonable time at the Districts' expense. Section 92. If a Districts' manager or supervisor has a reasonable suspicion that an employee is under the influence of a controlled substance or alcohol while on Districts' business or on Districts' property, or otherwise in violation of the Districts' Substance Abuse Policy, they must refer that employee to the Human Resource Department for a drug and alcohol screening test. If an employee suspects that another employee is under the influence of a controlled substance or alcohol in such a manner as to offer concern for the safety and well-being of other employees or the public, or is otherwise in violation of this policy, that employee has an obligation to immediately bring the matter to the attention of a Districts' manager or supervisor. XL. RIDESHARE PROGRAM Section 93. The South Coast Air Quality Management District's Regulation XV requires that the Districts offer incentives to reduce commute trips and meet ridesharing goals. In conformance with those regulations, The Boards have, by separate action, as amended from time to time, adopted the following incentives to encourage employees to rideshare: 4:-~Vifi@Compressed bi-weekly work schedules. 2-:Ji1@%[Allowing flexibility in the establishment of work hours to facilitate vanpool and other ,.,,.,x..,_.,.,,,,,..x,;,;, Ridesharing participation. 3-:l(ffJEDesignation of preferential parking spaces for Rideshare vehicles. 2000-00019 17766_1 22 ~fiil;;Operation of a Vanpool Program offering Districts' provided vans with the following provisions: The cost of operating the van would be recovered from the participating employees, with the driver paying a reduced amount; The Districts would subsidize up to three empty seats for up to three months when employee participation turnover occurs to keep the fares consistent ;:1nd to give participants time to recruit new riders; Prospective new participants will receive one free month as an encouragement for trying vanpooling (to be subsidized by the Districts); All participants will be required to sign a Vanpooling Agreement approved by the General Counsel setting forth the conditions of vanpool participation. ~@tlNProvision of a computerized carpool ridership matching service and routing assistance . ....... .,...... ........ •✓• •• e-a-f#Wt.%Utilization of certain fleet vehicles currently authorized to be driven between home and ~..,,;,..",,):,;;;;,;:-,< work by employees subject to emergency call•out for ridesharing purposes, as practical. +i {flfGuaranteed Ride Home Program utilizing certain fleet vehicles in the event a Rideshare participant cannot return home at the normally scheduled departure of their carpool or vanpool. &-RH1Wtlnstallation and maintenance of bike racks at each plant as well as locker room and :x;v-:.:,.y:;;,;;:,-,.:: shower facilities. 9:{@{[;;Conversion of in-plant vehicles used in Operations and Maintenance activities to electric ····· ··· ···· power as appropriate. -4-0,JNWMConversion of fleet vehicles to alternate clean fuel systems as appropriate. •··•··•v•· 11 .'!$fl;l:Providing additional paid time off: employees Ridesharing at least 60 percent of the time during a calendar quarter would accrue 4.5 hours of paid time off for that quarter, to be taken off in the same calendar year; employees Ridesharing at least 90 percent of the time would accrue 6. 75 hours per calendar quarter. 42-48{A Parking Fee Program will be implemented only if Districts employees are unsuccessful in meet SCAQMD mandated Average Vehicle Ridership goals by July 1, 1991, or in any subsequent quarterly period if such goal is not met. Once the Parking Fee Program is implemented for failure to meet the SCAQMD mandated Average Vehicle Ridership goal, it shall thereafter remain in effect. If the Parking Fee Program is implemented, employees hired subsequent to July 1, 1991, will be subject to a $30 per month parking fee; employees hired on or prior to that date will be subject to a monthly parking fee of $15 beginning July 1 of the initial year of implementation, and increasing to $30 July 1 of the second year of implementation. To enhance the potential of meeting the SCAQMD requirements, the Districts will make a reasonable effort to provide an incentive program that encourages employees to commute by means other than single occupancy vehicles. 2000-00019 17766_1 23 XU. NONDISCRIMINATION IN EMPLOYMENT Section 94. The Districts are an Equal Opportunity Employer, and do not discriminate against any person in matters of employment, application for employment, participation in programs and benefits, or in the application of rules and regulations with regard to race, ancestry, color, religion, national origin, sex, sexual orientation, age, veteran status, marital status or mental or physical disability or citizenship. XLII. SEXUAL HARASSMENT Section 95. The Districts will not tolerate sexual harassment in the workplace. Sexual Harassment may include, but is not limited to, any of the following: 1. Sexual favors. Unwanted sexual advances which condition an employment benefit upon exchange of sexual favors. 2. Hostile work environment. Sexually-based verbal, physical or visual harassment of such a nature and intensity that it creates an intimidating, hostile or offensive working environment. Conduct that may result in a hostile work environment includes, but is not limited to, the following: a. Sexual epithets, jokes, derogatory comments or slurs; b. Assault, impeding or blocking movement, or any physical interference with normal work or movement when directed at an individual on the basis of sex; c. Sexual cartoons, drawings, photographs or derogatory posters. Any employee who believes that he or she has been the victim of sexual harassment should immediately report the matter to his or her supervisor or manager, or to any other supervisor or manager, including the General Manager. Complaints of sexual harassment will be promptly investigated, and appropriate corrective action will be taken. Section 96. The Districts will not tolerate any other form of harassment, and is committed to providing a work environment that is free from unlawful discrimination. In keeping with that commitment, the Districts maintains a strict policy prohibiting harassment based on race, religious creed, color, national origin, ancestry, physical or mental disability, medical condition, marital status, sex, age, sexual orientation, exercise of rights relating to family care leave, or any other legally protected basis. This policy prohibits unlawful harassment will be promptly investigated, and appropriate corrective action will be taken. XLIII. SMOKE-FREE ENVIRONMENT Section 97. The Districts endorse and support the right of all employees to work in a healthy and safe environment free of recognized hazards. In view of the hazards associated with smoking, and the potentially harmful effect it has on the health and well being of Districts' employees and their families, smoking is not permitted within Districts' facilities. 2000-00019 17766_1 24 XLV. MISCELLANEOUS PROVISIONS Section .Q.Wt-0~. The General Manager is authorized to develop and administer written Human Resource poi"icies and procedures in order to augment, clarify or otherwise provide for the proper implementation of the provisions of this resolution, and to authorize special adjustments to avoid or eliminate inconsistencies which may result from a strict application of the provisions of this resolution. 2000-00019 17766_1 25 Section QQ.:{t!ffl. Resolution Numbers 79 20, 79 21 ~~Ut~ and any other resolutions, minute orders or ·ortions thereof Jnetafij,tf"'\R'''.··•t·i,-"'.'o.f~e'$litntf:1N:ifYQSM~ that are in conflict p ~,,,:,;;;:,:s_11;::,.,o:,J:L.,l?£UfJlJJt ,:,:<;:;,,:;o,i:,:,::l~'L,:,:,,J;\,;,,:,:»;;,;;:;,:c•:;,~\O::::;,:; herewith are hereby rescihdea and madeoTno further effect on tne effective date hereof. PASSED AND ADOPTED at a regular meeting of the Boards of Directors held this __ day of ------· 199_. 2000-00019 1n66_1 26 Oat.e: 22 AUG 1995 Min l 5 ---------------- 1000 7 .7662 8.0031 1001 ll.2373 ll.5824 1002 12 .5454 12. 9291 1003 13 .5239 13.9385 1004 l3 . 6166 14 .0338 1005 13 .9050 14.3312 1006 14 .1934 14. 6273 1007 14 .2861 14.7239 1008 14 .6878 15 .1371 1009 15 .7590 16 .2418 1010 15 .8620 16 .3487 1011 16 .1916 16.6873 1012 16. 6310 17.1405 1013 16.4182 16. 9203 1014 16.9847 17.5061 1015 17.3452 17.8757 1016 17,7057 18.2477 1017 17,8190 18.3649 1018 18 .5709 19.1400 1019 19 .0859 19.6704 1020 19 .4876 20 .0837 1021 19 .6215 20.2215 1022 20 .1571 20 .7751 1023 20 .3013 20 . .9232 1024 20 .7236 21.3583 1025 21 .3004 21.9532 1026 22 .3510 23 .0360 1027 18 .1754 18 .7322 2000 9 .7747 10.0747 2001 10 .3309 10.6463 2002 12 .5969 12 .9819 2003 12 .7617 13.1531 2004 13 .2149 l3 . 6192 2005 13 . 3900 13 . 8007 2006 14 .3479 14.7869 2007 14 .7393 15.1912 2008 16 .1195 16 .6126 2009 16.2225 16 . 7195 2010 16 .6757 17.1868 2011 16 .7890 17.304 0 2012 17 .8602 18.4074 2013 18.4782 19 .0447 2014 19 .1271 19 .7129 2015 20 .1983 20. 8176 Exhibit. A Grade Steps 2 0 2 5 A Mid --·---------------------- 8.2400 8 .4769 8 . 7138 ll. 9274 12. 2725 12 .6175 lJ.3128 l3 . 6964 14. 0801 14. 3531 14 .7676 15.1822 14.4509 14 . 8681 15.2852 14.7573 15 .1835 15.6097 15.0612 15 .4951 15.9290 15.1616 15 .5994 16.0371 15.5865 16 .0358 16.4852 16.7246 17 .2074 17.6903 16.8354 17.3220 17.8087 17.1830 17.6787 18 .1744 17.6501 18.1596 18 . 6692 17.4225 17.9246 18 .4267 18.0276 18 .5490 19 .0705 18.4061 18.9366 19 .4670 18.7898 19.3318 19 .8739 18.9108 19.4567 20.0026 19.7091 20 .2781 20 .8472 20.2550 20 .8395 2l. 4240 20 .6798 21. 2759 21 . 8721 20 .8215 21.4214 22 . 0214 21.3931 22 . 0111 22 . 6291 2l. 5450 22 .1669 22 .7888 21.9931 22 .6278 23 .2626 22.6059 23 .2587 23 . 9115 23.7209 24 .4059 25 .0908 19.2890 19 .8458 20 .4027 10.3747 10 .6747 10.9747 10.9618 11 .2772 11.5927 13.3668 13 ,7518 14 .1368 13 .5445 13. 9359 14 .3273 14 .0235 14. 4277 14.8320 14 .2114 14.6221 15 .0329 15 .2260 15.6650 16.1041 15.6431 16.0950 16 .5470 17.1057 17 .5988 18 .0920 17.2165 17. 7134 18 .2104 17.6980 18. 2091 18 .7203 17.8190 18 .3340 18.8490 18.9546 19 .5018 20 .0490 19 .6112 20 .1777 20.7442 20 .2987 20 .8845 21. 4704 21.4369 22 .0562 22.6755 3 5 4 0 4 5 Max ---------------· ------------------ 8 .9507 9 .1876 9 .4245 9.6614 12.9626 13 .3076 13.6527 13.9977 14.4638 14 .8475 15 . 2311 15 .6148 15.5968 16.0114 16 .4259 16 .8405 15 .7024 16.1195 16.5367 16.9538 16.0358 16.4620 16.8881 17.3143 16.3628 16.7967 17 .2306 17.6645 16.4749 16.9126 17.3504 17.7881 16.9345 17.3838 17 .8332 18.2825 18.1731 18.6559 19.1387 19.6215 18.2954 18 .7821 19 .2687 19.7554 18.6700 19.1657 19 . 6614 20.1571 19.1787 19.6882 20.1978 20.7073 18.9288 19.4310 19.9331 20.4352 19.5919 20 .1133 20 .6348 21.1562 19.9975 20.5279 21.0584 2l. 5888 20.4159 20.9579 21 .5000 22.0420 20.5485 21.0944 2l. 6403 22.1862 2l. 4163 21.9854 22.5544 23.1235 22.0085 22.5931 23.1776 23.7621 22.4682 23 .0643 23.6604 24.2565 22 . 6214 23 .2214 23 .8213 24.4213 23 .2471 23 .8651 24 .4831 25 .1011 23 .4106 24 .0325 24 .6543 25 .2762 23 .8973 24.5320 25 .1668 25 .8015 24 .5642 25 .2170 25 .8697 26.5225 25. 7758 26.4607 27 .1457 27.8306 20.9595 21.5163 22 .0731 22.6299 ll. 2746 11. 5746 11 . 8746 12.1746 11.9081 12.2235 12.5390 12.8544 14.5217 14.9067 15. 2916 15.6766 14.7187 15.1101 15 .5015 15.8929 15 .2363 15 .6406 16 .0448 16 .4491 15.4436 15 .8543 16.2650 16.6757 16.5431 16 .9821 17.4212 17.8602 16.9989 17 .4508 17 .9027 18.3546 18.5851 19.0782 19 .5713 20.0644 18.7074 19.2044 19 .7013 20.1983 19. 2314 19.7425 20 .2537 20.7648 19.3640 19 . 8790 20 .3940 20.9090 20 .5961 21 .1433 21. 6905 22.2377 21.3107 21 . 8772 22 .4437 23.0102 22 .0562 22 .6420 23 .2278 23 .8136 23 .2947 23 . 9140 24 .5333 25.1526 Range No . E l E 2 E 3 E 4 E 5 E 6 E 7 E 8 E 9 E lO E ll E 12 E 13 E l4 E 15 E 16 E 17 E 18 E 19 E 20 E 25 Exhibit A Series E Salary Ranges Fiscal Year 1995 -1996 75th Min Mid Percentile -----------------~---... ---- l6.37l0 19 .8027 2l.5l85 17.2326 20.7980 22.5807 18.0646 21 .8231 23.7024 18.9856 22.9373 24 . 9l3l 19 .9364 24.0664 26.l3l3 20.9168 25.2547 27.4237 21.9865 26.5473 28.8276 23.0561 27 .8397 30. 2314 24.2446 29 .2807 31.7988 25.4033 30 .6920 33.3363 26. 7106 32 .2519 35.0225 28.0774 33 .9009 36.8126 29.4738 35 .5795 38.6324 30 .9000 37 .3177 40.5265 32 .4747 39 .2044 42.5692 34.1088 4l . l653 44.6936 34.3168 42 .9034 47.1967 38.8924 48 .9200 53.9338 39.4272 49 .3063 54.2458 43.2693 51 .9953 54.0866 52.3231 64 .6539 70.8192 Max ---------- 23.2343 24.3634 25.5816 26.8889 28.1963 29.5926 31.1080 32.6232 34.3168 35.9806 37.7931 39. 7243 4l. 6852 43.7353 45.9340 48.2218 51.4900 58.9476 59.1853 57.6924 76.9846 Exhibit B-1 Administrative and Clerical Date: 29 AUG 1995 UNION .CODE -300 Union Table Job Grade Code Code Jobtitle Auth Code Min Max Mo Min Mo Max ------------------------------·--------------------------------------- 300 1121 FIN TECHNICIAN l 1017 17.8190 22.1862 3 ,088.6267 3,845.6080 300 1227 SR ACCT CLERK 5 1004 13 ,6166 16.9538 2,360 .2107 2,938 .6587 300 1229 ACCT CLERK 5 1002 12 .5454 15 . 6148 2,174.5360 2,706 .5653 300 l 722 GRAPHICS COORD l 1015 17.3452 21. 5888 3,006.5013 3,742 ,0587 300 l 724 GRAPHICS SVCS ASST l 1011 16 .1916 20.1571 2,806 .5440 3,493.8973 300 1914 SR STORESKEEPER 2 1013 16 .4182 20.4352 2 ,845 .8213 3,542.1013 300 1916 STORES KEEPER 6 1003 13 .5239 16.8405 2,344.1427 2,919.0200 300 2218 ADMIN ASST 1 1012 16.6310 20.7073 2,882.7067 3,589 ,2653 300 2225 SECRETARY 14 1007 14 .2861 17.7881 2,476.2573 3,083 ,2707 300 2227 SR OFFICE AIDE 1 1004 13. 6166 16.9538 2,360 .2107 2,938.6587 300 2229 OFFICE AIDE 2 1002 12.5454 15 .6148 2,174 .5360 2,706.5653 300 2237 SR CLERK 20 1002 12.5454 15 .6148 2 ,174 .5360 2,706.5653 300 2239 CLERK 5 1001 ll.2373 13.9977 1,947.7987 2,426 .2680 300 5116 INFO SVCS TECH III 3 1019 19,0859 23.7621 3,308.2227 4,118 .7640 Exhibit B -2 Engineering Date: 29 AUG 1995 UNION.CODE• 900 Union Table Job Grade Code Code Jobtitle Auth Code Min Max Mo Min Mo Max ---------------------------------------------------------------------- 900 3223 SR ENG ASSOC l 1026 22.3510 27 .8306 3,874.1733 4,823.9707 900 3224 ENG ASSOC 4 1023 20.3013 25.2762 3,518 .8920 4,381.2080 900 3234 ENG AIDE III 3 1015 17.3452 21.5888 3,006 .5013 3,742.0587 900 3235 ENG AIDE II 3 1009 15.7590 19.6215 2,731 .5600 3,401.0600 900 3236 ENG AIDE I 3 1006 14.1934 17.6645 2,460.1893 3,061.8467 900 3316 SR CONSTR INSP 6 1025 21. 3004 26.5225 3,692 .0693 4,597 .2333 900 3317 CONSTR INSP ll 1020 19.4876 24.2565 3,377.8507 4,204.4600 Exhibit. B -3 Technical Services Date: 29 AUG l995 UNION.CODE a 700 Union Table Job Grade Code Code Jobtitle Auth Code Min Max Mo Min Mo Max --------------~------------------------------------------------------- 700 4223 SR ENV SPEC l l024 20.7236 25.80l5 3,592.0907 4,472.2600 700 4225 ENV SPEC II 4 l0l8 18.5709 23.l235 3,2l8.9560 4,008.0733 700 4227 ENV SPEC I l l0l0 l5.8620 19.7554 2,749.4l33 3,424.2693 700 45l6 SR LAB ANALYST ll l0l8 lB.5709 23.l235 3,2l8.9560 4,008.0733 700 45l7 LAB ANALYST l0 l0l0 l5.8620 l9.7554 2,749.4133 3,424.2693 700 47l4 SOURCE CTRL INSP II l4 l0l8 lS.5709 23.l235 3,218.9560 4,008.0733 700 47l8 SOURCE CTRL TECH 3 1005 l3.9050 l7.3l43 2,410.2000 3,00l.l453 Exhibit B~4 Operations and Maintenance Date: 29 AUG 1995 UNION.CODE• 500 Union Table Job Grade Code Code Jobtitle Auth Code Min Max Mo Min Mo Max ---------------------------------------------------------------------- 500 6114 SR PLANT OPERATOR 28 2013 18.4782 23 .0102 3,202.8880 3,988.4347 500 6116 PLANT OPERATOR 49 2008 16.1195 20 . 0644 2,794.0467 3,477.8293 500 6214 PUMP POWER OPERATOR 12 2013 18.4782 23 .0102 3,202.8880 3,988.4347 500 6497 CTRL CTR CLERK 10 2002 12 .5969 15 .6766 2,183 .4627 2,717.2773 500 7215 LEAD WORKER 6 2012 17.8602 22 .2377 3,095 .7680 3,854.5347 500 7217 SR MTCE WORKER 8 2007 14.7393 18 .3546 2,554 .8120 3,181.4640 500 7219 MTCE WORKER 10 2005 13 .3900 16 .6757 2,320.9333 2,890.4547 500 7325 GROUNDS KEEPER 6 2003 12.7617 15 .8929 2,212.0280 2,754.7693 500 7329 HELPER 7 2000 9.7747 12 .1746 1,694.2813 2,110 .2640 500 7332 MACHINIST l 2012 17.8602 22 .2377 3,095 .7680 3,854.5347 500 7333 WELDER 3 2011 16.7890 20 .9090 2,910 .0933 3,624 .2267 500 7334 EQUIPMENT OPERATOR 3 2010 16 .6757 20 .7648 2,890.4547 3,599.2320 500 7335 BUILDER 3 2009 16.2225 20 .1983 2,811.9000 3,501.0387 500 7336 PAINTER 7 2007 14.7393 18 .3546 2,554 .8120 3,181.4640 500 7415 LEAD COLL FAC WORKER 7 2012 17.8602 22 .2377 3,095 .7680 3,854.5347 500 7417 SR COLL FAC WORKER 9 2007 14 . 7393 18 .3546 2,554.8120 3 ,181.4640 500 7418 COLL FAC WORKER II 9 2005 13 .3900 16 .6757 2,320 .9333 2,890 .4547 500 7419 COLL FAC WORKER I 3 2001 10.3309 12 .8544 1,790.6893 2,228.0960 500 7515 LEAD MECHANIC 11 2013 18.4782 23 ,0102 3,202.8880 3,988.4347 500 7517 SR MECHANIC 23 2011 16 .7890 20 .9090 2,910.0933 3 ,624.2267 500 7518 MECHANIC 22 2006 14.3479 17.8602 2 ,486 .9693 3 ,095 .7680 500 7615 LEAD ELECT TECH 4 2015 20.1983 25 ,1526 3,501.0387 4,359.7840 500 7617 ELECT TECH II 9 2014 19.1271 23 .8136 3,315 .3640 4,127.6907 500 7618 ELECT TECH I 9 2009 16 .2225 20 .1983 2,811.9000 3,501.0387 500 7715 LEAD INSTR TECH 4 2015 20.1983 25 .1526 3,501.0387 4,359.7840 500 7717 INSTR TECH II 17 2014 19.1271 23 .8136 3 ,315 .3640 4,127 .6907 500 7718 INSTR TECH I 12 2009 16.2225 20 .1983 2,811 .9000 3,501.0387 Exhibit: B -5 Professional Date: 19 SEP 1995 UNION.CODE~ 225 Union Table Job Grade Code Code Jobtitle Auth Code Min Max Mo Min Mo Max ------------------------------------------------------·--------------- 225 1112 SR FIN ANALYST l 5 19.9364 28.1963 3,455.6427 4,887.3587 225 1212 SR ACCOUNTANT l 5 19-9364 28.1963 3,455.6427 4,887.3587 225 1214 ACCOUNTANT 1 1 16 .3710 23.2343 2,837.6400 4,027.2787 225 1314 FIN ANALYST 1 1 16 . 3710 23.2343 2,837.6400 4,027.2787 225 1814 SR BUYER 1 4 18 .9856 26.8889 3,290 .8373 4,660.7427 225 1816 BUYER 3 l 16 .3710 23.2343 2,837.6400 4,027.2787 225 2216 SR ADMIN ASST l 6 20 .9168 29.5926 3,625 .5787 5,129.3840 225 2314 MANAGEMENT ANALYST l l 16 .3710 23.2343 2,837 .6400 4,027.2787 225 2414 CONTRACT ADMIN l 8 23 .0561 32.6232 3,996.3907 5,654.6880 225 3114 ENGINEER 19 ll 26 . 7106 37 .7931 4,629.8373 6,550.8040 225 3118 ASSOC ENGINEER II 3 5 19 -9364 28.1963 3 ,455.6427 4,887.3587 225 3222 PR ENG ASSOC 3 9 24 .2446 34 .3168 4 ,202 .3973 5,948.2453 225 4114 REGULATORY SPEC 3 9 24 .2446 34 .3168 4 ,202.3973 5,948 .2453 225 4221 PR ENV SPEC 2 8 23 .0561 32 .6232 3,996 .3907 5,654 .6880 225 4415 PROJECT SPEC 1 9 24 .2446 34.3168 4,202.3973 5,948 .2453 225 4514 PR LAB 6c RES ANALYST 7 6 20.9168 29.5926 3,625.5787 5,129.3840 225 4614 SCIENTIST 5 9 24 .2446 34.3168 4,202.3973 5,948.2453 225 5112 COMPUTER HARDWARE SPEC 1 7 21. 9865 31.1080 3,810.9933 5,392.0533 225 5113 TELECOMMUNICATIONS SPEC 1 7 21.9865 31.1080 3,810.9933 5,392.0533 225 5212 PROGRAMMER ANALYST 8 7 21.9865 31.1080 3,810.9933 5,392.0533 225 5214 PROGRAMMER 4 4 18.9856 26.8889 3,290.8373 4,660.7427 225 7812 SR MTCE PLANNER 3 9 24.2446 34.3168 4,202.3973 5 ,948.2453 225 7814 MTCE PLANNER 2 7 21.9865 31.1080 3,810.9933 5 ,392.0533 225 8114 HR ANALYST 1 2 17.2326 24.3634 2,986.9840 4,222.9893 225 8212 SAFETY/EMER RESP SPEC 1 8 23 . 0561 32.6232 3,996.3907 5,654.6880 225 8316 SAFETY REP 2 4 18.9856 26.8889 3,290.8373 4,660.7427 Exhibit B -6 Supervisory Date: 29 AUG 1995 UNION.CODE -200 Union Table Job Grade Code Code Jobt:itle Auth Code Min Max Mo Min Mo Max --------------------------------------------------------------------- 200 1210 PR ACCOUNTANT 3 9 24.2446 34.316B 4,202.3973 5,948.2453 200 1310 PR FIN ANALYST 1 9 24 .2446 34.316B 4,202.3973 5,948.2453 200 1910 WAREHOUSE SPVSR 1 4 1B .9B56 26.88B9 3,290.8373 4,660.7427 200 3110 ENGINEERING SPVSR 7 l4 30.9000 43.7353 5,356.0000 7,580.7853 200 3112 SR ENGINEER 6 13 29.4738 41. 6B52 5,108.7920 7,225.4347 200 3310 SPVSR CONSTR INSP 4 9 24.2446 34. 316B 4,202.3973 5,948.2453 200 4310 ENV MANAGEMENT SUP 2 l3 29.473B 41. 6B52 5,108.7920 7,225.4347 200 4510 LABORATORY SPVSR 4 12 2B.0774 39.7243 4,866.7493 6,885.5453 200 4610 SR SCIENTIST 1 12 28.0774 39. 7243 4,866.7493 6,885.5453 200 4710 SOURCE CONTROL SPVSR 1 9 24.2446 34 .3168 4,202.3973 5,948.2453 200 4712 SPVSR SOURCE CTRL INSP 2 5 19.9364 2B.1963 3,455.6427 4,887.3587 200 6105 SR OPERATIONS SPVSR 2 11 26. 7106 37.7931 4,629.8373 6,550.8040 200 6110 OPERATIONS SPVSR 12 9 24.2446 34. 3168 4,202.3973 5,948.2453 200 6510 COMPLIANCE SPVSR l 12 2B. 0774 39. 7243 4,866 .7493 6,885.5453 200 7110 MAINTENANCE SPVSR 5 9 24.2446 34.316B 4,202.3973 5,948.2453 200 7112 FOREMAN 13 7 21. 9B65 31.10B0 3,810.9933 5,392.0533 200 B310 SAFETY SPVSR l 6 20.916B 29.5926 3,625.5787 5,129.3840 200 B410 TRAINING SPVSR 2 B 23 .0561 32.6232 3,996.3907 5,654.6880 Exhibit B -7 Executive Management Date: 21 SEP 1995 UNION.CODE -100 Union Table Job Grade Code Code Jobtitle Auth Code Min Max Mo Min Mo Max --------------------------------------------------------------------- 100 0001 GENERAL MANAGER 1 27 62.5000 62 .5000 10,833.3333 10,833 .3333 100 0002 ASST GEN MGR AOMIN 1 20 43 .2693 57.6924 7,500.0120 10,000.0160 100 0003 ASST GEN MGR OPERS l 20 43 .2693 57. 6924 7,500 .0120 10,000.0160 100 1000 DIR OF FINANCE l 18 38.8924 58.9476 6,741.3493 10,217.5840 100 2100 SECTY TO THE BRO DIR l 10 25.4033 35 .9806 4,403.2387 6,236.6373 100 3000 DIR OF ENGINEERING l 19 39 .4272 59.1853 6,834 .0480 10,258.7853 100 4000 DIR OF TECHNICAL SVCS l 19 39 .4272 59.1853 6,834.0480 10,258 .7853 100 5000 DIR OF INFO TECH l 17 34 .3168 51.4900 5,948.2453 8,924 .9333 100 6000 DIR OF OPERATIONS l 19 39.4272 59.1853 6,834.0480 10,258 .7853 100 7000 DIR OF MAINTENANCE l 19 39.4272 59 .1853 6,834.0480 10,258 .7853 100 8000 DIR OF HR 1 17 34.3168 51 .4900 5,948.2453 8,924.9333 Management UNION.CODE 175 Union Table Job Grade Code Code Jobtitle Auth Code Min Max Mo Min Mo Max ----------------------------------------------------------___ ..,. ________ 175 0500 COMMUNICATIONS DIR l 9 24 .2446 34.3168 4,202.3973 5,948 .2453 175 1100 FINANCIAL MGR l 15 32 .4747 45 . 9340 5,628.9480 7,961.8933 175 1200 CONTROLLER l 15 32.4747 45.9340 5,628.9480 7,961.8933 175 1201 ACCOUNTING MGR l 13 29.4738 41.6852 5,108.7920 7,225 .4347 175 1800 PURCHASING MGR l 12 28.0774 39. 7243 4,866 .7493 6,885 .5453 175 2214 PR AOMIN ASST l 9 24 .2446 34.3168 4,202 .3973 5,948 .2453 175 2221 EXECUTIVE ASST II 2 1027 18.1754 22.6299 3,150.4027 3,922 .5160 175 2223 EXECUTIVE ASST I 7 1012 16. 6310 20 . 7073 2,882.7067 3,589 .2653 175 3100 ENGINEERING MGR l 16 34.1088 48 .2218 5,912 .1920 8,358 .4453 175 3300 CONSTRUCTION MGR l 16 34 .10B8 48 .221B 5,912.1920 8,358.4453 175 4112 SR REGULATORY SPEC 1 12 28.0774 39 .7243 4,866.7493 6,885 .5453 175 4300 ENV MANAGEMENT MGR 1 16 34 .1088 48 .2218 5,912.1920 8,358.4453 175 4500 LABORATORY MGR 1 16 34 .1088 48 .2218 5,912.1920 8,358.4453 175 4600 CHIEF SCIENTIST l 14 30 .9000 43 .7353 5,356.0000 7,580.7853 175 4700 SOURCE CONTROL MGR l 16 34 .1088 48.2218 5,912.1920 8,358.4453 175 5100 HARDWARE SYS MGR 1 11 26 .7106 37 .7931 4 ,629 .8373 6,550.8040 175 5200 SOFTWARE SYS MGR l 11 26. 7106 37.7931 4,629.8373 6,550.8040 175 6100 CHIEF OPERATOR 2 13 29 .4738 41 .6852 5,108.7920 7,225.4347 175 6101 OPERATIONS MGR l 12 28 .0774 39 .7243 4,866.7493 6,885.5453 175 8110 HR SPVSR l 9 24 .2446 34 .3168 4,202.3973 5,948 .2453 175 8113 SR HR ANALYST 2 6 20.9168 29,5926 3,625.5787 5,129 .3840 175 8117 HR ASST 2 1012 16 . 6310 20 .7073 2,882 .7067 3,589 .2653 175 8200 SAFETY/EMER RESP MGR l 13 29.4738 41. 6852 5,108.7920 7,225 .4347 175 8400 TRAINING MGR 1 10 25.4033 35 .9B06 4,403.2387 6,236.6373 Date: 29 AUG 1995 UNION.CODE• 950 Union Table Job Code Code Jobtitle 950 9990 INTERN UNION.CODS a 999 Union Table Job Code Code Jobtitle 999 1919 STORESKEEPER ASST 999 2299 PT ASST 999 7299 PT ASST-SUMMER Exhibit B -8 Unrepresented Grade Auth Code Min Max 19 905 9 . 2700 16. 0000 Unrepresented Grade Auth Code Min Max ------------------- l 904 6.1800 12.8853 7 903 6.1800 10.5987 38 901 .0000 6.0000 Mo Min Mo Max 1,606.8000 2,773.3333 Mo Min MO Max -------------------·--- l,07l.2000 2,233.4520 1,071.2000 1,837.1080 .0000 1,040.0000 Exhibit C Position and Salaries by Division Date: 24 AUG 1995 Div. Job Code Code Job Title --~------------------- 2150 0001 GENERAL MANAGER 2150 0002 ASST GEN MGR ADMIN 2150 0003 ASST GEN MGR OPERS 2150 2221 EXECUTIVE ASST II 2150 Div. Job Code Code Job Title 2160 2100 SECTY TO THE BRO DIR 2160 2225 SECRETARY 2160 Div. Job Code Code Job Title 2170 2214 PR ADMIN ASST 2170 Auth Fte Grade Salary Ranges Monthly Salary Ranges --------------------------------------------------- l.00 27 $62.5000 -$62.5000 10,833.3333 -$10,833.3333 l.00 20 $43.2693 -$57.6924 $7,500.0120 -$10,000.0160 l.00 20 $43.2693 -$57.6924 $7,500.0120 -$10,000.0160 2.00 1027 $18 .1754 -$22.6299 $3,150.4027 -$3,922.5160 5.00 Auth Fte Grade Salary Ranges Monthly Salary Ranges, 1.00 10 2.00 1007 3.00 $25.4033 -$35.9806 $4,403.2387 -$6,236.6373 $14.2861 -$17 .7881 $2,476 .2573 -$3,083.2707 Auth Fte Grade Salary Ranges Monthly Salary Ranges 1.00 9 $24 .2446 -$34.3168 $4,202.3973 -$5,948.2453 l.00 Exhibit C Position and Salaries by Division Date: 19 SEP 1995 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ---------------------· --------------------------------------------------- 2190 0500 COMMUNICATIONS DIR 1.00 9 $24.2446 $34.3168 $4,202 .3973 -$5,948.2453 2190 2216 SR ADMIN ASST 1.00 6 $20.9168 -$29.5926 $3,625.5787 $5,129.3840 2190 1722 GRAPHICS COORD 1.00 1015 $17.3452 -$21.5888 $3,006.5013 -$3,742.0587 2190 2218 ADMIN ASST 1.00 1012 $16.6310 -$20.7073 $2,882.7067 -$3,589.2653 2190 1724 GRAPHICS SVCS ASST 1.00 1011 $16.1916 -$20 .1571 $2,806 .5440 -$3,493.8973 2190 2225 SECRETARY l.00 1007 $14.2861 -$17 .7881 $2,476 .2573 -$3,083.2707 2190 2227 SR OFFICE AIDE l.00 1004 $13.6166 -$16.9538 $2,360.2107 -$2,938.6587 2190 9990 INTERN l.00 905 $9.2700 -$16 .0000 $1,606.8000 -$2,773.3333 2190 2229 OFFICE AIDE 2.00 1002 $12.5454 -$15.6148 $2,174.5360 -$2,706.5653 2190 2237 SR CLERK l.00 1002 $12.5454 -$15.6148 $2,174 .5360 -$2,706 .5653 2190 2239 CLERK l.00 1001 $11.2373 -$13.9977 $1,947.7987 -$2,426.2680 2190 12 .00 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------------------------------ 2210 1000 DIR OF FINANCE l.00 18 $38.8924 -$58 .9476 $6 ,741.3493 -$10,217 .5840 2210 1100 FINANCIAL MGR l.00 15 $32 .4747 -$45.9340 $5,628 .9480 -$7,961.8933 2210 1310 PR FIN ANALYST l.00 9 $24.2446 -$34 .3168 $4,202 .3973 -$5,948.2453 2210 2223 EXECUTIVE ASST I l.00 1012 $16.6310 -$20.7073 $2,882.7067 -$3,589.2653 2210 4.00 Exhibit C Positi on and Salaries by Division Date: 24 AUG 1995 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ----------------------------------------------------~--------·----------- 2220 1200 CONTROLLER 1.00 15 $32.4747 -$45.9340 $5,628 .9480 -$7,961 .8933 2220 1201 ACCOUNTING MGR 1.00 13 $29 .4738 -$41 ,6852 $5,108 .7920 -$7,225.4347 2220 1210 PR ACCOUNTANT 3.00 9 $24 .2446 -$34 . 3168 $4,202.3973 -$5,948.2453 2220 1310 PR FIN ANALYST 1.00 9 $24 .2446 -$34 .3168 $4,202.3973 -$5,948.2453 2220 1212 SR ACCOUNTANT 1.00 5 $19 .9364 -$28 .1963 $3 ,455.6427 -$4,887.3587 2220 1214 ACCOUNTANT 1.00 l $16 .3710 -$23 .2343 $2,837 .6400 -$4,027.2787 2220 1314 FIN ANALYST 1.00 1 $16 .3710 -$23 ,2343 $2,837 .6400 -$4,027.2787 2220 1121 FIN TECHNICIAN 1.00 1017 $17 .8190 -$22 .1862 $3,088 .6267 -$3,845.6080 2220 1227 SR ACCT CLERK 5 .00 1004 $13.6166 -$16 ,9538 $2,360 .2107 -$2,938 .6587 2220 1229 ACCT CLERK 5 .00 1002 $12. 5454 -$15 .6148 $2,174 .5360 -$2,706.5653 2220 20.00 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------------------------------- 2230 1800 PURCHASING MGR 1.00 12 $28 ,0774 -$39. 7243 $4,866.7493 -$6,885 ,5453 2230 1814 SR BUYER 1.00 4 $1B .9856 -$26 .8889 $3,290 .8373 -$4,660 .7427 2230 1910 WAREHOUSE SPVSR 1.00 4 $18 .9856 -$26 .8889 $3,290.8373 -$4,660 .7427 2230 1816 BUYER 3 .00 l $16 .3710 -$23 .2343 $2,837.6400 -$4,027 .2787 2230 1914 SR STORESKEEPER 2.00 1013 $16 .4182 -$20 .4352 $2,845.8213 -$3,542 .1013 2230 2225 SECRETARY 1.00 1007 $14 .2861 -$17 .7881 $2,476.2573 -$3 ,083 .2707 2230 1916 STORES KEEPER 6.00 1003 $13 .5239 -$16 .8405 $2,344.1427 -$2,919 .0200 2230 2237 SR CLERK 2 .00 1002 $12 .5454 -$15 .6148 $2,174.5360 -$2,706 .5653 2230 1919 STORES KEEPER ASST 1.00 904 $6 .1800 -$12 .8853 $1,071.2000 -$2,233 .4520 2230 18.00 Exhibit C Position and Salaries by Division Date: 24 AUG 1995 Div. Job Code Code Job Title --------------------- 2410 5000 DIR OF INFO TECH 2410 2314 MANAGEMENT ANALYST 2410 2223 EXECUTIVE ASST I 2410 Div. Job Code Code Job Title 2420 5100 HARDWARE SYS MGR 2420 5112 COMPUTER HARDWARE SPEC 2420 5113 TELECOMMUNICATIONS SPE 2420 5116 INFO SVCS TECH III 2420 Div. Job Code Code Job Title ---------------------- 2430 3114 ENGINEER 2430 5200 SOFTWARE SYS MGR 2430 5212 PROGRAMMER ANALYST 2430 5214 PROGRAMMER 2430 3235 ENG AIDE II 2430 2239 CLERK 2430 Auth Fte Grade Salary Ranges Monthly Salary Ranges --------------------------------------------------- 1.00 17 $34.3168 -$51.4900 $5,948.2453 -$8,924.9333 1.00 1 $16. 3710 -$23.2343 $2,837.6400 -$4,027.2787 1.00 1012 $16 .6310 -$20.7073 $2,882.7067 -$3,589.2653 3.00 Auth Fte Grade Salary Ranges Monthly Salary Ranges 1 . 00 11 1.00 7 1.00 7 3.00 1019 6.00 Auth Fte Grade 1.00 11 1.00 11 9 .00 7 4.00 4 1.00 1009 1.00 1001 17.00 $26.7106 -$37 .7931 $4,629.8373 -$6,550.8040 $21.9865 -$31.1080 $3,810.9933 -$5,392.0533 $21.9865 -$31.1080 $3,810.9933 -$5,392.0533 $19.0859 -$23.7621 $3,308.2227 • $4,118.7640 Salary Ranges Monthly Salary Ranges --------------------------------------------------- $26 . 7106 -$37.7931 $4,629.8373 -$6,550.8040 $26 . 7106 -$37 .7931 $4,629.8373 -$6,550 .8040 $21 .9865 -$31.1080 $3,810.9933 -$5,392 .0533 $18.9856 $26 .8889 $3,290.8373 -$4,660.7427 $15 .7590 -$19 .6215 $2,731.5600 -$3,401.0600 $11 . 2373 -$13 .9977 $1,947 .7987 -$2,426 .2680 Exhibit C Position and Salaries by Division Date : 24 AUG 1995 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------·------------------------ 2510 8000 DIR OF HR 1.00 17 $34 .3168 -$51.4900 $5,948.2453 -$8,924.9333 2510 2223 EXECUTIVE ASST I 1.00 1012 $16 .6310 -$20 .7073 $2,882 .7067 -$3,589 .2653 2510 2.00 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ----------------------------------------------------------------------- 2520 8400 TRAINING MGR 1.00 10 $25 .4033 -$35 .9806 $4,403.2387 . $6,236.6373 2520 8110 HR SPVSR 1.00 9 $24 .2446 . $34 .3168 $4,202 .3973 -$5,948.2453 2520 8410 TRAINING SPVSR 1.00 8 $23.0561 -$32 . 6232 $3,996 .3907 -$5,654.6880 2520 8113 SR HR ANALYST 2.00 6 $20.9168 . $29.5926 $3,625 .5787 . $5,129.3840 2520 8114 HR ANALYST 1.00 2 $17.2326 . $24 .3634 $2,986 .9840 . $4,222.9893 2520 8117 HR ASST 1.00 1012 $16. 6310 -$20.7073 $2,882 .7067 -$3,589.2653 2520 2225 SECRETARY 1.00 1007 $14.2861 -$17 .7881 $2,476 .2573 -$3,083 .2707 2520 2237 SR CLERK 2 .00 1002 $12.5454 -$15. 6148 $2 ,174 .5360 . $2,706.5653 2520 10.00 Exhibit C Position and Salaries by Division Date: 24 AUG 1995 Div. Job Code Code Job Title ---------------------- 2530 8200 SAFETY/EMER RESP MGR 2530 8212 SAFETY/EMER RESP SPEC 2530 8310 SAFETY SPVSR 2530 8316 SAFETY REP 2530 8117 HR ASST 2530 9990 INTERN 2530 Div. Job Code Code Job Title ---------------------- 3310 7000 DIR OF MAINTENANCE 3310 3114 ENGINEER 3310 2223 EXECUTIVE ASST 3310 2225 SECRETARY 3310 9990 INTERN 3310 2237 SR CLERK 3310 2239 CLERK 3310 Div. Job Code Code Job Title 3320 7100 MAINTENANCE MGR 3320 7812 SR MTCE PLANNER 3320 7814 MTCE PLANNER 3320 I Auth Pte 1 .00 l.00 1.00 2.00 1.00 l.00 7 .00 Auth Fte 1.00 1.00 l.00 2 .00 2.00 1.00 2 .00 10.00 Auth Pte l.00 3 .00 2.00 6 .00 Grade Salary Ranges Monthly Salary Ranges --------------------------------------------------- 13 $29 .4738 -$41.6852 $5,108.7920 -$7,225.4347 8 $23.0561 -$32 .6232 $3,996.3907 -$5,654.6880 6 $20. 9168 -$29 .5926 $3,625.5787 -$5,129.3840 4 $18 .9856 -$26 .8889 $3,290.8373 -$4,660.7427 1012 $16. 6310 -$20 .7073 $2,882.7067 -$3,589.2653 905 $9.2700 -$16 .0000 $1,606.8000 -$2,773.3333 Grade Salary Ranges Monthly Salary Ranges --------------------------------------------------- 19 $39 .4272 -$59.1853 $6,834.0480 -$10,258 .7853 11 $26 . 7106 -$37.7931 $4,629.8373 -$6,550 .8040 1012 $16 .6310 -$20.7073 $2,882.7067 -$3,589 .2653 1007 $14 . 2861 -$17.7881 $2,476.2573 -$3,083 .2707 905 $9.2700 -$16 .0000 $1,606.8000 -$2,773 .3333 1002 $12 .5454 -$15 .6148 $2,174.5360 -$2,706 .5653 1001 $11.2373 -$13 .9977 $1,947.7987 -$2,426 .2680 Grade Salary Ranges Monthly Salary Ranges 12 9 7 $28 .0774 -$39 .7243 $4,866.7493 -$6,885.5453 $24.2446 -$34.3168 $4 ,202 .3973 -$5,948.2453 $21 .9865 -$31.1080 $3,810 .9933 -$5,392.0533 Exhibit C Position and Salaries by Division Date: 24 AUG 1995 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------------------------~------ 3330 7100 MAINTENANCE MGR 1.00 12 $28 .0774 -$39.7243 $4,866 .7493 -$6,885 .5453 3330 7110 MAINTENANCE SPVSR 1.00 9 $24 .2446 -$34 .3168 $4,202 .3973 -$5,948.2453 3330 7112 FOREMAN 3 .00 7 $21 .9865 $31.1080 $3,810 .9933 $5,392.0533 3330 7215 LEAD WORKER 6 .00 2012 $17 .8602 -$22 .2377 $3,095 ,7680 -$3,854.5347 3330 7335 BUILDER 3.00 2009 $16 .2225 -$20 ,1983 $2,811 .9000 -$3,501.0387 3330 7217 SR MTCE WORKER 8.00 2007 $14 .7393 -$18 .3546 $2,554 .8120 -$3,181.4640 3330 7336 PAINTER 7.00 2007 $14 .7393 -$18 ,3546 $2,554 .8120 -$3,181.4640 3330 7219 MTCE WORKER 10.00 2005 $13 ,3900 -$16 .6757 $2,320 .9333 -$2,890.4547 3330 7325 GROUNDS KEEPER 6.00 2003 $12.7617 -$15 .8929 $2,212 .0280 -$2,754.7693 3330 7329 HELPER 7 .00 2000 $9 .7747 -$12 .1746 $1,694.2813 -$2,110.2640 3330 52.00 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------------------------------- 3340 7100 MAINTENANCE MGR 1.00 12 $28. 0774 -$39 .7243 $4,866 .7493 -$6,885 .5453 3340 7110 MAINTENANCE SPVSR 1.00 9 $24.2446 -$34 .3168 $4,202.3973 -$5,948 .2453 3340 7112 FOREMAN 2.00 7 $21. 9865 -$31.1080 $3,810.9933 -$5,392 .0533 3340 7415 LEAD COLL FAC WORKER 7 .00 2012 $17.8602 -$22 .2377 $3,095.7680 -$3,854.5347 3340 7417 SR COLL FAC WORKER 9.00 2007 $14.7393 -$18.3546 $2,554.8120 -$3,181.4640 3340 7418 COLL FAC WORKER II 9 .00 2005 $13.3900 -$16 . 6757 $2,320.9333 -$2,890.4547 3340 7419 COLL FAC WORKER I 3 .00 2001 $10.3309 -$12 .8544 $1,790 .6893 -$2,228.0960 3340 32.00 Exhibit C Position and Salaries by Division Date: 24 AUG 1995 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ---------·---------------------------------------------------------------- 3350 7100 MAINTENANCE MGR 1.00 12 $28 .0774 -$39 . 7243 $4,866.7493 -$6,885 .5453 3350 7110 MAINTENANCE SPVSR 1.00 9 $24 .2446 -$34 . 3168 $4,202 .3973 -$5,948 .2453 3350 7112 FOREMAN 3 .00 7 $21 .9865 -$31.1080 $3,810.9933 -$5,392 .0533 3350 7515 LEAD MECHANIC 11.00 2013 $18 .4782 -$23 .0102 $3,202.8880 -$3,988.4347 3350 7332 MACHINIST 1.00 2012 $17 .8602 -$22 .2377 $3 ,095.7680 -$3,854 .5347 3350 7333 WELDER 3.00 2011 $16.7890 -$20 .9090 $2,910.0933 -$3,624 .2267 3350 7517 SR MECHANIC 23.00 2011 $16.7890 -$20 .9090 $2,910.0933 -$3,624 .2267 3350 7334 EQUIPMENT OPERATOR 3.00 2010 $16 .6757 -$20 .7648 $2,890.4547 -$3,599 .2320 3350 7518 MECHANIC 22.00 2006 $14.3479 -$17 .8602 $2,486.9693 -$3,095 .7680 3350 68.00 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ---------------------------------------------------------------~------- 3360 7110 MAINTENANCE SPVSR 1.00 9 $24 .2446 -$34 .3168 $4,202.3973 -$5,948 .2453 3360 7112 FOREMAN 3.00 7 $21. 9865 -$31 .1080 $3,810.9933 -$5,392 .0533 3360 7615 LEAD ELECT TECH 4 .00 2015 $20 .1983 -$25 .1526 $3,501.0387 -$4,359 .7840 3360 7617 ELECT TECH II 9.00 2014 $19 .1271 -$23 .8136 $3,315.3640 -$4,127 .6907 3360 7618 ELECT TECH I 9.00 2009 $16 .2225 -$20 ,1983 $2,811.9000 -$3,501 .0387 3360 26 .00 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------------------------------- 3370 7100 MAINTENANCE MGR 1.00 12 $28 .0774 -$39 .7243 $4,866.7493 -$6,885 .5453 3370 7110 MAINTENANCE SPVSR 1.00 9 $24 .2446 -$34. 3168 $4,202.3973 -$5,948.2453 3370 7112 FOREMAN 2 .00 7 $21 .9865 -$31.1080 $3,810 .9933 -$5,392 .0533 3370 7715 LEAD INSTR TECH 4 .00 2015 $20 .1983 -$25.1526 $3,501.0387 -$4,359.7840 3370 7717 INSTR TECH II 17 .00 2014 $19 .1271 -$23 .8136 $3,315.3640 -$4,127 .6907 3370 7718 INSTR TECH I 12.00 2009 $16 .2225 -$20.1983 $2,811.9000 -$3,501 .0387 3370 37 .00 (~ ' , Exhibit C Position and Salaries by Division Date: 24 AUG 1995 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------------------------------- 3410 6000 DIR OF OPERATIONS 1.00 19 $39 .4272 -$59.1853 $6,834.0480 -$10,258 .7853 3410 3110 ENGINEERING SPVSR 1.00 14 $30.9000 -$43 ,7353 $5,356.0000 -$7,580 .7853 3410 6510 COMPLIANCE SPVSR 1.00 12 $28.0774 -$39.7243 $4,866.7493 -$6,885 .5453 3410 3114 ENGINEER 5.00 11 $26. 7106 -$37.7931 $4,629.8373 -$6,550 .8040 3410 4415 PROJECT SPEC 1.00 9 $24.2446 -$34 .3168 $4,202.3973 -$5,948 .2453 3410 3117 ASSOC ENGINEER III 1.00 8 $23.0561 -$32 .6232 $3,996.3907 -$5,654 .6880 3410 8410 TRAINING SPVSR 1.00 8 $23.0561 -$32 .6232 $3,996.3907 -$5,654 .6880 3410 3118 ASSOC ENGINEER II 1.00 5 $19.9364 $28 .1963 $3,455.6427 -$4,887.3587 3410 2314 MANAGEMENT ANALYST 1.00 1 $16.3710 $23.2343 $2,837.6400 -$4,027 .2787 3410 4225 ENV SPEC II 1.00 1018 $18.5709 -$23 .1235 $3,218.9560 -$4,008.0733 3410 2223 EXECUTIVE ASST I 1.00 1012 $16.6310 -$20 .7073 $2,882.7067 -$3,589.2653 3410 9990 INTERN 5.00 905 $9.2700 -$16 .0000 $1,606.8000 -$2,773 .3333 3410 2237 SR CLERK 1.00 1002 $12.5454 -$15 .6148 $2,174.5360 -$2,706.5653 3410 2239 CLERK 1.00 1001 $11.2373 -$13 .9977 $1,947.7987 -$2,426 .2680 3410 22.00 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------------------------------- 3480 6100 CHIEF OPERATOR 2.00 13 $29.4738 -$41 .6852 $5,108 .7920 -$7,225.4347 3480 6101 OPERATIONS MGR 1.00 12 $28.0774 -$39 .7243 $4,866 ,7493 $6,885.5453 3480 6105 SR OPERATIONS SPVSR 2.00 11 $26. 7106 -$37 .7931 $4,629 .8373 -$6,550.8040 3480 6110 OPERATIONS SPVSR 12.00 9 $24.2446 -$34 . 3168 $4,202 .3973 -$5,948.2453 3480 6114 SR PLANT OPERATOR 28.00 2013 $18 .4782 -$23 .0102 $3,202 .8880 -$3,988.4347 3480 6214 PUMP POWER OPERATOR 12.00 2013 $18 .4782 $23 .0102 $3,202 .8880 -$3,988.4347 34B0 7334 EQUIPMENT OPERATOR 3.00 2010 $16 .6757 -$20.764B $2,890 .4547 -$3,599.2320 3480 6116 PLANT OPERATOR 49.00 2008 $16 .1195 -$20 .0644 $2,794 .0467 -$3,477.8293 3480 6497 CTRL CTR CLERK 10.00 2002 $12 .5969 -$15.6766 $2,183 .4627 $2,717.2773 34B0 119.00 Exhibit C Position and Salaries by Division Date: 24 AUG 1995 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------------------------------- 3510 4000 DIR OF TECHNICAL SVCS l .00 19 $39. 4272 -$59 .1853 $6,834.0480 -$10,258 .7853 3510 4112 SR REGULATORY SPEC l.00 12 $28. 0774 -$39 .7243 $4,866.7493 -$6,885.5453 3510 4114 REGULATORY SPEC 3.00 9 $24 .2446 -$34 . 3168 $4,202.3973 -$5,948.2453 3510 4225 ENV SPEC II l.00 1018 $18 .5709 -$23 .1235 $3,218.9560 -$4,008.0733 3510 2223 EXECUTIVE ASST I l.00 1012 $16. 6310 -$20 .7073 $2,882 .7067 -$3,589.2653 3510 2225 SECRETARY l.00 1007 $14.2861 -$17 .7881 $2,476.2573 -$3,083.2707 3510 9990 INTERN 7.00 905 $9.2700 -$16 .0000 $1,606.8000 -$2,773.3333 3510 15.00 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------------------------------ 3550 4300 ENV MANAGEMENT MGR l.00 16 $34.1088 -$48.2218 $5,912.1920 -$8,358.4453 3550 4600 CHIEF SCIENTIST l.00 l4 $30.9000 -$43.7353 $5,356 .0000 -$7,580.7853 3550 4310 ENV MANAGEMENT SUP 2.00 13 $29,4738 -$41.6852 $5,108 .7920 -$7,225.4347 3550 4610 SR SCIENTIST l.00 12 $28.0774 -$39.7243 $4,866.7493 -$6,885.5453 3550 3114 ENGINEER 1.00 ll $26. 7106 -$37.7931 $4,629 .8373 -$6,550.8040 3550 4614 SCIENTIST l.00 9 $24.2446 -$34 .3168 $4,202 .3973 -$5,948.2453 3550 3117 ASSOC ENGINEER III l.00 8 $23.0561 -$32. 6232 $3,996 .3907 -$5,654 .6880 3550 4221 PR ENV SPEC l.00 8 $23 .0561 -$32. 6232 $3,996 .3907 -$5,654 .6880 3550 4223 SR ENV SPEC l.00 1024 $20 . 7236 -$25.8015 $3,592 .0907 -$4,472 .2600 3550 4225 ENV SPEC II 2.00 1018 $18 .5709 -$23.1235 $3,218 .9560 -$4,008 .0733 3550 4227 ENV SPEC I l.00 1010 $15 .8620 -$19.7554 $2,749 .4133 -$3,424 .2693 3550 2225 SECRETARY 1 .00 1007 $14 .2861 $17.7881 $2,476 .2573 -$3,083 .2707 3550 2237 SR CLERK 2 .00 1002 $12.5454 -$15.6148 $2,174 .5360 -$2,706 .5653 3550 16 .00 /~ ( ; Exhibit C Position and Salaries by Division Date: 24 AUG 1995 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------------------------------- 3580 4500 LABORATORY MGR 1.00 16 $34 .1088 $48.2218 $5,912 .1920 -$8,358.4453 3580 4510 LABORATORY SPVSR 4.00 12 $28 .0774 -$39.7243 $4,866 .7493 -$6,885.5453 3580 4614 SCIENTIST 5.00 9 $24. 2446 $34.3168 $4,202 .3973 -$5,948.2453 3580 4514 PR LAB & RES ANALYST 7.00 6 $20 .9168 $29.5926 $3,625 .5787 -$5,129.3840 3580 4516 SR LAB ANALYST 11.00 1018 $18.5709 -$23.1235 $3,218 .9560 -$4,008.0733 3580 4517 LAB ANALYST 10.00 1010 $15 .8620 -$19.7554 $2,749 .4133 -$3,424 .2693 3580 2225 SECRETARY 1.00 1007 $14 ,2861 -$17.7881 $2,476 ,2573 -$3,083 .2707 3580 2237 SR CLERK 2.00 1002 $12 ,5454 -$15.6148 $2,174 .5360 -$2,706 .5653 3580 2299 PT ASST 6.00 903 $6 ,1800 -$10.5987 $1,071 .2000 -$1,837 .1080 3580 47.00 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------------------------------- 3590 4700 SOURCE CONTROL MGR 1.00 16 $34 .1088 -$48 .2218 $5,912 .1920 -$8,358 .4453 3590 3112 SR ENGINEER 2.00 13 $29 ,4738 -$41 .6852 $5,108 .7920 -$7,225.4347 3590 3114 ENGINEER 2.00 11 $26 . 7106 -$37 .7931 $4,629 .8373 -$6,550 .8040 3590 4710 SOURCE CONTROL SPVSR 1.00 9 $24 .2446 -$34 .3168 $4,202 .3973 -$5,948 .2453 3590 3117 ASSOC ENGINEER III 6.00 8 $23 ,0561 -$32 .6232 $3,996 .3907 -$5,654 .6880 3590 4221 PR ENV SPEC 1.00 8 $23 .0561 . $32 .6232 $3,996 .3907 . $5,654.6880 3590 3118 ASSOC ENGINEER II 2.00 5 $19 .9364 -$28 .1963 $3,455 .6427 -$4,887 .3587 3590 4712 SPVSR SOURCE CTRL INSP 2.00 5 $19 .9364 -$28 ,1963 $3,455 .6427 -$4,887,3587 3590 4714 SOURCE CTRL INSP II 14.00 1018 $18 .5709 . $23 .1235 $3,218 .9560 -$4,008.0733 3590 2225 SECRETARY 1.00 1007 $14 .2861 $17 .7881 $2,476 .2573 -$3,083 .2707 3590 4718 SOURCE CTRL TECH 3.00 1005 $13 . 9050 . $17 .3143 $2,410 .2000 -$3,001.1453 3590 2237 SR CLERK 7.00 1002 $12 .5454 $15 .6148 $2,174 ,5360 -$2,706 .5653 3590 2299 PT ASST 1.00 903 $6 .1800 -$10 .5987 $1,071 .2000 -$1,837.1080 3590 43.00 Exhibit C Position and Salaries by Division Date: 24 AUG 1995 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------------------------------- 3710 3000 DIR OF ENGINEERING 1.00 19 $39 .4272 -$59 .1853 $6,834.0480 -$10,258.7853 3710 2414 CONTRACT ADMIN 1.00 8 $23.0561 -$32.6232 $3,996.3907 -$5,654.6880 3710 2223 EXECUTIVE ASST I 1 .00 1012 $16.6310 -$20.7073 $2,882 .7067 -$3,589.2653 3710 9990 INTERN 3 .00 905 $9.2700 -$16. 0000 $1,606.8000 -$2,773.3333 3710 6.00 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------------------------------ 3720 3100 ENGINEERING MGR 1.00 16 $34 .1088 -$48.2218 $5,912 .1920 -$8,358 .4453 3720 3110 ENGINEERING SPVSR 3.00 14 $30.9000 -$43 .7353 $5,356 .0000 -$7,580.7853 3720 3112 SR ENGINEER 2 .00 13 $29 .4738 -$41 .6852 $5,108 .7920 -$7,225.4347 3720 3114 ENGINEER 6 .00 11 $26. 7106 -$37 ,7931 $4,629 .8373 -$6,550.8040 3720 3222 PR ENG ASSOC 2 .00 9 $24.2446 -$34. 3168 $4,202 .3973 -$5 ,948 .2453 3720 3117 ASSOC ENGINEER III 1.00 8 $23.0561 -$32.6232 $3,996 .3907 -$5,654.6880 3720 3223 SR ENG ASSOC 1.00 1026 $22.3510 -$27 .8306 $3,874 .1733 -$4,823.9707 3720 3224 ENG ASSOC 2.00 1023 $20.3013 -$25 .2762 $3,518 .8920 -$4,381.2080 3720 3234 ENG AIDE III 2.00 1015 $17 .3452 -$21 .5888 $3,006 .5013 -$3,742.0587 3720 3235 ENG AIDE II 1.00 1009 $15.7590 -$19 .6215 $2,731.5600 -$3,401.0600 3720 2225 SECRETARY 1.00 1007 $14.2861 -$17 .7881 $2,476 .2573 -$3,083 .2707 3720 3236 ENG AIDE I 2.00 1006 $14.1934 -$17 .6645 $2,460.1893 -$3,061.8467 3720 2237 SR CLERK 1.00 1002 $12 .5454 -$15.6148 $2,174.5360 -$2,706.5653 3720 25 .00 Exhibit C Position and Salaries by Division Date: 24 AUG 1995 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges -·----------------------------------------------------------------------- 3730 3110 ENGINEERING SPVSR 1.00 14 $30 .9000 -$43 .7353 $5,356 .0000 . $7,580.7853 3730 3222 PR ENG ASSOC 1.00 9 $24 .2446 . $34 .3168 $4,202 .3973 . $5,948.2453 3730 3224 ENG ASSOC 1.00 1023 $20 .3013 . $25.2762 $3,518 .8920 . $4,381.2080 3730 3235 ENG AIDE II 1.00 1009 $15 ,7590 . $19 .6215 $2,731.5600 -$3,401.0600 3730 2225 SECRETARY 1.00 1007 $14 , 2861 $17 .7881 $2,476 .2573 -$3,083 .2707 3730 3236 ENG AIDE I 1.00 1006 $14 ,1934 $17 .6645 $2 ,460 .1893 . $3,061 .8467 3730 6.00 Div. Job Auth Code Code Job Title Fte Grade Salary Ranges Monthly Salary Ranges ------------------------------------------------------------------------- 3790 3300 CONSTRUCTION MGR 1.00 16 $34 .1088 . $48 .2218 $5,912 .1920 $8,358 .4453 3790 3110 ENGINEERING SPVSR 2 .00 14 $30 .9000 -$43 . 7353 $5,356 .0000 -$7,580 .7853 3790 3112 SR ENGINEER 2 .00 13 $29.4738 -$41 .6852 $5,108.7920 . $7,225 .4347 3790 3114 ENGINEER 5.00 11 $26. 7106 . $37 ,7931 $4,629.8373 -$6,550 .8040 3790 3310 SPVSR CONSTR INSP 4 .00 9 $24.2446 -$34 .3168 $4,202.3973 . $5,948 .2453 3790 3316 SR CONSTR INSP 6.00 1025 $21.3004 -$26 .5225 $3,692.0693 . $4,597 .2333 3790 3224 ENG ASSOC 1.00 1023 $20.3013 -$25 .2762 $3,518.8920 . $4 ,381.2080 3790 3317 CONSTR INSP 11. 00 1020 $19.4876 -$24.2565 $3,377.8507 -$4,204.4600 3790 3234 ENG AIDE III 1.00 1015 $17.3452 -$21.5888 $3 ,006 .5013 -$3,742.0587 3790 2225 SECRETARY 1.00 1007 $14 .2861 -$17.7881 $2,476 .2573 -$3,083 .2707 3790 2237 SR CLERK 1.00 1002 $12.5454 . $15. 6148 $2,174 .5360 -$2,706 .5653 3790 35.00 673 .00 ! l \ \ .E2!m! D Written Report D Overheads •Slides D FllpCharts Department Head Sign _,\';r-~4-.l=:::=-- Anticipated Time -z.-;.J ,,i,tA,l/1-,._ FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR95-38: Summary: AGENDA FOR OCTOBER 11, 1995 Consideration of motion approving authorization for staff to solicit bids for Phase Ill and IV F.I.S. Consultant and Acceptance of F.I.S. RFP prepared by Deloitte & Touche At the October 1994 Fiscal Policy Committee meeting, the consulting firm of Deloitte & Touche delivered an extensive Request For Proposal (RFP} for the acquisition and installation of a new financial information system within the Districts' Finance Department. At that time, the Committee had decided to form an ad hoc subcommittee to review the RFP and to report their findings back to the Committee. At the January 18, 1995 meeting, the Finance and Personnel Committee made the decision to have the consulting firm of Ernst & Young review the RFP in conjunction with their review and evaluation of the Finance Department. In their July 1995 report on the Finance Function Review, Ernst & Young recommended a number of enhancements to the RFP including: • Additional functionality requirements in the area of Project Accounting and Cashiering. • Expanded functionality in the Contracts Subsystem area. • Functionality requirements for the Human Resource application. Staff Recommendation 1. Direct staff to solicit bids for a professional consulting agreement for the completion of Phase 111, Selection Process for Hardware and Software, and Phase IV, Implementation and Acceptance of the Selected Hardware and Software Solutions for the Financial Information System project 2. Approve for release the Request For Proposal for a Financial Information System. Distribution of the RFP will be made to appropriate vendors as identified by the selected professional consulting firm hired to complete Phases Ill and IV. J:\WPDOC\FIN\CRANEIFPC.MTG\FAHR.95\ITEMIFAHR95.38 October 11, 1995 FAHR95-38: Summary STAFF REPORT Consideration of authorization for staff to solicit bids for Phase Ill and IV F.I.S. Consultant and Acceptance of F.I.S. RFP prepared by Deloitte & Touche At the October 1994 Fiscal Policy Committee meeting, the consulting firm of Deloitte & Touche delivered an extensive Request For Proposal (RFP) for the acquisition and installation of a new financial information system within the Districts' Finance Department. At that time, the Committee had decided to form an ad hoc subcommittee to review the RFP and to report their findings back to the Committee. At the January 18, 1995 meeting, the Finance and Personnel Committee made the decision to have the consulting firm of Ernst & Young review the RFP in conjunction with their review and evaluation of the Finance Department. In their July 1995 report on the Finance Function Review, Ernst & Young recommended a number of enhancements to the RFP including: • Additional functionality requirements in the area of Project Accounting and Cashiering. • Expanded functionality in the Contracts Subsystem area. • Functionality requirements for the Human Resource application. These additional enhancements have now been incorporated into the RFP by Deloitte & Touche and staff is recommending that the RFP be approved for release. With the approval of the RFP, Deloitte & Touche will have completed Phase I, the Detailed Needs Assessment, and Phase II, Development of Specifications for a Formal RFP, of this F.I.S. project as contractually agreed upon. Staff will be providing this Committee with a recommendation on the selection of a consultant for completing Phase Ill, Selection Process for Hardware and Software, and Phase IV, Implementation and Acceptance of the Selected Hardware and Software Solutions at the November Finance, Administration, and Human Resource Committee meeting. Background The existing financial information system was designed in 1977 and has been modified when necessary and cost-effective. This system's useful life cycle has expired and the system should be replaced. Factors in support of a new system include limited processing capability of the current computer and disk drives, the unavailability of the source code for CS DOC O P .0. Box 8127 0 Fountain Valley, CA 92728-8127 0 Tel. (714) 962-2411 0 FAX (714) 962-3954 FAHR95-38 Page2 October 11, 1995 the proprietary operating system, the lack of corporate support for the operating system, the one-of-a-kind nature of customized software resulting in no support and no enhancements, and the inability of the existing system to grow to accommodate new users and applications. The information needs of the Districts have also changed over the past 15 years as the agency as grown. Flows have grown since 1978 from 191 MGD to 245 MGD, authorized personnel have grown from 276 in 1978 to the current level of 664, and perhaps more significantly, total fixed assets of the Districts, in historical cost, have grown from $229 million in 1978 to over $950 million. Additional information system requirements are further demonstrated by recent studies completed by Ernst & Young and KPMG Peat Marwick. Ernst & Young noted within their July 1995 review of the Districts' Finance Function that no single issue arose more often than the limitations of the financial information system and that the current system lacks key functionality including a report generator, on-line processing, and the ability to establish automated standard journal entries. KPMG Peat Marwick's Internal Control Report dated June 10, 1995 concluded that the Districts would benefit from an integrated financial information system that combined the Human Resource and Payroll functions. Such a system would eliminate duplication and ensure consistency of Human Resource and Payroll information. Their report also mentioned the need for an encumbrance and dynamic job cost accounting system that would allow for increased visibility of budgetary spending, and reduce the possibility of projects exceeding budgets. A summary of the proposed RFP is enclosed and will be reviewed at the meeting. Professional Services The process of acquiring a new financial information system began in February 1994 with a professional consulting agreement with Deloitte & Touche to perform a financial information needs assessment (Phase I) and for the development of specifications for a formal request for proposal (Phase 11), for an amount not to exceed $150,000. The RFP presented by Deloitte & Touche represents the completion of their agreed upon work for the Districts. At the outset of the planning for the new F.I.S. proposals were solicited from professional firms to assist in the selection and implementation. The project was established in four phases; Phase I -Perform a Needs Assessment; Phase II -Develop Specifications for a Formal RFP; Phase Ill -Assist with the Application Selection Process; Phase IV -Assist in the Implementation and Acceptance Process. After Committee review and recommendation, the Directors selected the firm of Deloitte & Touche to perform the Phase I and II work. It is appropriate now to consider professional services for the balance of the project. ' FAHR95-38 Page 3 October 11, 1995 Phase Ill -Assist with the Application Selection Process was described in the original RFP as follows: "The initial task will be to determine prequalification criteria to determine which firms will receive the formal F.I.S. RFP. Upon receipt of the formal proposals, the Committee will assess the proposals, evaluate any demonstrations or presentations made (if any) and make a determination of best, lowest cost solution. Phase IV -Assist in the Implementation and Acceptance Process was further described as: Involving" ... the monitoring of the vendor's implementation to determine adherence to schedule according to the previously specified milestones. This step will also involve the monitoring of the vendor's adherence to the original specifications and meeting the Districts' identified needs. The final step will be to actively participate in the final acceptance of the new system." While staff will be intimately involved in these two phases, we do not have the needed experience, knowledge, time or information base to complete this project on our own. It is necessary to leverage our abilities by obtaining professional services able to augment our strengths and to represent us when dealing with suppliers. Staff Recommendations 1. Approve for release the Request For Proposal for a Financial Information System. Distribution of the RFP will be made to appropriate vendors as identified by the professional consulting firm selected to complete Phases Ill and IV. 2. Direct staff to solicit bids for a professional consulting agreement for the completion of Phase 111, Selection Process for Hardware and Software, and Phase IV, Implementation and Acceptance of the Selected Hardware and Software Solutions for the Financial Information System project MDW:lc J:\WPOOC\FINICRANEIFPC.MTGIFAHR.95\STAFF.RPT\SRFAHR95.38 Attachments FAHR95-38 Overview SUMMARY I I REQUEST FOR PROPOSAL FOR A FINANCIAL INFORMATION SYSTEM ATTACHMENT "A" This is a major systems development project to upgrade the core business management information system. The three major functional or application areas that are required to be fully integrated consist of the following components: • Finance: General Ledger Cost Accounting Budget Accounts Receivable Cash Receipts Fixed Assets • Materials Management: Accounts Payable Inventory Control Procurement • Payroll/Human Resources Payroll Process Human Resources Information Additionally, there are hardware and technical system requirements that must be met. In both the hardware and applications areas, the goal of the RFP is to obtain mainstream solutions which will best fulfill our requirements for the next several years. The RFP has been prepared in five chapters which are summarized in the following: General Information This chapter explains in general terms who we are, what we are looking for, and the selection process. Included in this section is information the proposer will need and matrix forms to be completed for one-time and ongoing software-related costs, training classes and associated costs and for any modifications or customization required. Copies of these forms are attached. Attachment "A" FAHR95-38 Page 2 Vendor and Product Profile Requirements This chapter requires the proposer to answer a multitude of questions about the firm, including the firm's previous installations, the firm's customer support and training capabilities, their implementation support, their ongoing development practices and policies, and their application version control system. Technical Requirements The configuration of the hardware environment will be determined by the software and have not been predetermined. This section requires the proposers to identify the hardware configurations that the proposed software runs on, the computer resources required, the operating systems required, technology integration features, the future directions of enhancements and technology and other system-related data. Proposers are advised that we will give preference to Oracle based applications with a Windows- NT interface. Global System Requirements This is the section of the RFP that addresses issues common to all of the applications being proposed. These include issues like archiving, support for multiple organizations, date and time considerations, tables and table maintenance, input validation, error handling controls, reporting, function security, documentation and audit trails. Application Area Functional Requirements This section is really three sections, one each for the requirements for Finance, Materials Management and Payroll/Human Resources, and is over 200 pages long. Finance The General Ledger will be closely integrated with other financial systems, provide validation for all transaction entries, serve as a central repository for all financial transaction data, and meet the following objectives: • All data maintained on accounts is accurate and timely. • Provide flexibility to meet changing needs. • Meet all statutory and GAAP fund accounting requirements. • Provide effective controls and support of audit procedures. • Allow local data entry and ad hoc reporting. • Support budget vs. actual reporting, including encumbrances. • Support modified accrual accounting. • Provide on-line inquiry capabilities. Attachment "A" FAHR95-38 Page 3 () ' ' The Cost Accounting module will support fund accounting and encumbrances, and be updated from the same transactions that update the General Ledger, Accounts Payable and Purchasing and will meet the following objectives: • Retain cost data at user-defined levels. • Retain cost data by project across fiscal or calendar years. • Retrieve data on-line or in reports at transaction and summary levels. • Access data on-line by combinations of project and/or activity codes. • Support cost allocations per user-defined parameters. • Use tables and algorithms for cost allocation. • Support cost analysis at several levels. The Budgeting system will enhance staff's ability to collect, process, analyze and distribute budget data and documentation required to monitor revenues and expenditures. The system will track each line item as it moves through the budget process, support a multi-level approval process and tie into the review and appropriation processes of the Board of Directors. The objectives of this application include: • Preparation of Division budgets through on-line worksheets and approvals. • Roll up of lower level budgets. • Outloading information to word processing/graphical systems for final reports. • Control and tracking of budget adjustments. • Monitoring from various levels. • Support ongoing monitoring of amendments after adoption. • Provide different views of the consolidated budget. The Accounts Receivable/Cash Receipts application will provide on-line entry of transactions, editing upon data entry and on-line inquiry, and report generation. The system will automatically match invoices and payments and support the recording of customer conversations and correspondence. The objectives of the subsystem include: • Increase productivity and reduce errors through matching and reporting variances. • Interface with Accounts Payable for refunds and adjustments. • Capture and retain historical information. • Support ad hoc reporting for specific problems. • Provide electronic interface with Technical Services to enhance industrial/commercial user invoices. The Fixed Asset subsystem will facilitate tracking of fixed assets and other tagged portable assets through the following objectives: • Automatically generate tags for increased productivity. Attachment "A" FAHR95-38 Page4 • Support ad hoc reporting for specific problems. • Eliminate redundant data entry through interfaces with other applications. Materials Management The Accounts Payable application will be on-line, real time, tightly integrated with Purchasing and Inventory Receiving and will provide data entry edits. The major objectives of this module include: • Automatic three-way matching. • Acceptance of data from Accounts Receivable. • Communication of pending items to other modules. • Capture of historical vendor information. • Support of ad hoc report generation. • On-line processing. • Validation of general ledger entries. • Automatic preparation of 1099s. • Built-in controls to prevent duplicate invoice entry. The Inventory Control application will function in a multi-warehouse environment, providing automated stock level calculations and automatic replenishment through the creation of transfers or purchase orders. The system will be fully integrated with Purchasing and will pass inventory transactions to the General Ledger. Following are the overall objectives of this system: • On-line update and inquiry. • Complete integration with Purchasing. • Improved inventory management. • Identification of obsolete inventory. • Support of hazardous materials management. • Support of paperless receiving. • Automatic purchase orders. The Purchasing module will be an on-line, real-time application tightly integrated with Accounts Payable, Inventory Control and the General Ledger in order to maximize data integrity, reduce redundant data entry, and enable better use of information. The major objectives of this module include: • Decrease purchase requisition cycle time. • On-line purchase order entry from requisition. • Consolidation of requisition by vendor. • Qualitative and quantitative vendor ratings. • Purchasing history for all items purchased. • Support ad hoc report generation. • Seamless interface with RJN Computerized Maintenance Management System. Attachment "A" FAHR95-38 Page 5 Payroll/Human Resources The payroll application will include timekeeping and calculating and distributing payroll costs. The subsystem will obtain data from the Human Resources application seamlessly, prepare checks and maintain year-to-date totals. Among the many management and accounting objectives of the Payroll system are: • Provide a single point of entry for all payroll hours, work order numbers and leave hours. • Establish platform for potential move to decentralized time/attendance entry. • Maintain work-hour year-to-date totals for individuals and work units. • Provide direct deposit option. • Provide on-line review of employee work/leave hours, salary and deduction information. • Provide seamless integration with Human Resources, General Ledger, Cost Accounting and Budget modules. The Human Resources subsystem will include employee processing, classification/compensation, performance appraisals, career planning, succession planning, benefit management, and training and development. The system will be fully integrated with the General Ledger, Payroll and Budget applications. Among the objectives of this system are: • Seamless integration with other systems. • A single point of input for salary and benefit information. • A training inventory by employee. • Automated classification studies. • Remote on-line inquiry of employee benefits. • Integration of position control with Budgeting. The RFP has been prepared by Deloitte & Touche after their completion of needs assessment, has been reviewed by appropriate Districts' staff at various levels, has been reviewed by Ernst & Young for conformance with their recommendations, and is now ready to issue. The successful proposer will provide for benchmarking, performance measurement and project management throughout the proposal. GGS:lc J;IWPDOCIFINICRANE\FPC.MTGIFAHR.951STAFF.RP1'ATTACH95.38 Attachments ' -~ Format D Written Report D Overheads • Slides • Flip Charts Originator ~ Department Head Sign Off~ Anticipated Time '5' ,M,'Ll.A- FINANCE, ADMlNISTRATION AND HUMAN RESOURCES COMMITTEE FAHR95-39: Summary: AGENDA FOR OCTOBER 11, 1995 Consideration of motion to receive and file staff report regarding monitoring of the Local Agency Investment Fund Consideration of a staff report regarding monitoring of the California State Local Agency Investment Fund (LAIF) as requested by the Committee at their September meeting. Staff Recommendation Information only. J:IWPDOC\FINICRANEIFPC.MTGIFAHR.9511TEMIFAHR95.39 ' 1 , October 11, 1995 FAHR95-39: Background (~ I STAFF REPORT Consideration of motion to receive and file staff report regarding monitoring of the Local Agency Investment Fund At the September 13, 1995 meeting of the Finance, Administration & Human Resources Committee, staff was requested to report to the Committee regarding monitoring the Districts' funds in LAIF, the California Local Agency Investment Fund. This report responds to the Committee's request. Oversight at LAIF The level of oversight at LAIF is an important element of monitoring. Three oversight committees are active at LAIF. The first is the Pool Monies Board, which is responsible for compliance review of funds placement. Membership on the Pool Monies Board includes the State Treasurer, the State Director of Finance, and LAIF Division Chiefs. The second oversight panel at LAIF is the Investment Management Committee (IMC), which is responsible for policy decision-making. Membership on the IMC includes the State Treasurer, the State Director of Finance, and the State Controller. The third oversight group is the LAIF Advisory Board, which consists of the LAIF Administrator as Chair, and four local government and banking industry representatives who provide advisory input on LAIF policies and procedures. Finally, LAIF undergoes three audits each year; an internal audit, a State Controller's Office audit, and an external audit. Results of the audits are reviewed by the oversight committees. Current Status of LAIF Investments Staff contacted a LAIF Advisory Board member and the LAIF Administrator to obtain and verify the following information: 0 Inverse Floaters: LAIF contains no inverse floaters. There is no legal authority for inverse floaters as a permitted investment. CSDOC • P.O. Box 8127 • Fountain Valley, CA 92728-8127 • Tel. (714) 962-2411 • FAX (714) 962-3954 FAHR95-39 Page2 October 11, 1995 0 0 LAI F Reports Reverse Repurchase Agreements: While the LAIF investment policy permits the portfolio to contain up to 10% Reverse Repos, today, Reverse Repos make up less than 1 % of the LAIF portfolio. Additionally, only securities that are owned by LAIF are reversed, and the Reverse Repos are matched to the maturity of the underlying security. Average Maturity: The average portfolio life of LAIF on the most recent reporting date (August 31, 1995), was 300 days; down by 135 days from the 435 day average maturity of the fund in August, 1994. This downward trend is continuing under the policy direction of the IMC, which is to increase the overall liquidity of LAIF given prevailing market conditions. Reports and resources which are available to the Districts for monitoring LAIF include: o The "Statement of Portfolio Management Goals, Objectives & Policiesn for the Pooled Money Investment Account (PMIA), a copy of which is presented in Attachment "A. n o The monthly statement for the Districts' LAIF account, and the "Summary of Investment Data for the PMIA.n Copies of both reports for the month ending August 31, 1995, are presented in Attachment "B.n o A synopsis of the minutes of LAIF Advisory Board meetings. This practice was implemented in July, 1995. o Discussions with members of the Advisory Board, the LAIF Administrator, LAIF staff, and attendance at LAIF seminars and meetings. Quarterly Reporting Staff will actively monitor LAIF, and will present summary information about the Districts' LAIF account in each Quarterly Investment Program Report to the Committee. GGS:lc J:IWPOOCIFIN\CRANEIFPC.MTGIFAHR.95\STAFF.RPT\I.AIF.1 FAHR95-39 r ATTACHl{ENT 11A11 STATE TREASURER'S OFFICE STATEMENT OF PORTFOLIO MANAGEMENT GOALS, OBJECTIVES AND POLICIES POOLED MONEY INVESTMENT ACCOUNT-PMIA All state money held by the State Treasurer in Treasury trust accounts, and all money in the State Treasury, ..... is appropriated for the purpose of investment and deposit as provided in article 4.5, Section 16480 et. al. of the Government Code. GOALI. RATEOFRETURN Pooled investments and deposits shall be made in such a way as to realize the maximum return consistent with safe and prudent treasury management. Due regard shall be given to assisting programs of the state designed to support the economy of economically disadvantaged areas. For example, when evaluating investment or deposit options with insured financial institutions, the Community Reinvestment Act rating of the institution will be considered. OBJECTIVE: The rate of return will be maintained on a consistent level representative of current market yield direction. POLICY: Sales gains/losses will not be incurred to the point of radically altering the final quarterly apportionment rate. Significant sales gains will be offset for restructuring purposes to maintain consistent current return, as well as maximizing future portfolio performance. Significant sales losses shall be incurred only by consent of the Treasurer, or when sufficient profits negate the alteration of the apportionment rate. GOAL Il. LIQUIDITY The pool~ managed t0 ensure that normal cash needs, as well as scheduled extraordinary cis .,. -~ s can be met. Further, adequate liquidity shall be maintained to ensure the unforeseen cash needs, whether ordinary or extraordinary. OBJECTIVE: The pool will maintain a "cash flow generated' portfolio balance sufficient to cover specifically the one month prepared cash forecast, as well as generally the six month prepared cash forecast. Further, sufficient marketable treasuries will be maintained to cover unforeseen withdrawals or delayed deposits. 1 -~;-r,.:•1, , POLICY: First priority is given to maintaining specific calendar liquidity, as dictated by the most recent cash forecast. Second priority is the maintenance of Treasury Bill positions adequate to meet unscheduled needs and domiciled in the San Francisco Depository to facilitate mid-day cash needs. Final consideration would be given to "other" investments deemed appropriate to portfolio maintenance, enhancement, or restructuring. GOAL ID. PORTFOLIO DIVERSIFICATION The pool shall maintain a mix of securities that will provide reasonable assurance that no single investment or class of investments will have a disproportionate impact on the total portfolio. OBJECTIVE: The pool will achieve two objectives by maintaining a prudent mix of investments: 1) Credit exposure will be minimized by mixing not only investment types, but by mixing the credits included within one particular investment type. This objective accounts for external protection. 2) Internal protection is maintained by mixing investment types to minimize their potential portfolio impact. An unforeseen liquidity need allows no options if "all of your eggs are in one basket." POLICY: The portfolio shall maintain sufficient number and diversity of marketable securities so that the investment can be readily converted to cash without causing a material change in the value of the portfolio. Limitation and _eligibility as to specific investments are to be determined by the Pooled Money Investment Board in the case of Commercial Paper, the Treasurds Office Investment Committee in cases of new dealer authorization and approval of new corporate investments, and the Treasury Investment Division in all other matters. CONFORMANCE: All of the foregoing goals, objectives and policies shall be observed by the Chief ofinvestments or his designee, monitored by the Treasurer's Investment Committee, and reviewed continually by the Treasurer or his/ her assistant. 2 STATE TREASURER'S OFFICE STATEMENT OF PORTFOLIO MANAGEMENT GUIDELINES POOLED MONEY INVESTMENT ACCOUNT-PMIA The State Treasurer's Investment Division has set forth a general declaration of portfolio goals, objectives and policies. Following are various guidelines necessary to the good faith observance of these policies. I. GUIDELINES FOR MAINTAINING RA TE OF RETURN Always keep in mind the need to provide a consistent rate of return not only to the quarterly participants of the pool, but the longer term depositors as well. It is often the case that investments made with long term deposits create the base rate to the portfolio. Since sales gains/losses impact the portfolio on a quarterly basis, large gains/losses are to be avoided. Failure to offset either gains or losses proportionately would result in a saw- toothed apportionment rate history. For this reason, extreme positions or styles of trading are prohibited. An informal weekly meeting, with the Chief oflnvestments, Assistant Chief, and Investment Manager, will be held to discuss current investment philosophies and upcoming economic releases. Decisions of value and direction are made to accommodate the occurrence of all those events which might be considered reasonable and probable. Although securities trading is allowed for purposes of enhancing portfolio return, specific limitations have been established to protect the portfolio rate of return: I) Prior to taking a position, apparent value and size will be discussed between the Chief and Treasury Trader involved. 2) During a "when issued' (W.I.) period our long position shall never exceed the amount we are willing to purchase. 3) Short positions will not be taken at any time. 4) Trading positions are to be reported daily to the Chief of Investments. 3 ~-,~1•n II. GUIDELINES FOR MAINTAINING LIQUIDITY First priority will be the cash flow needs as reported on both the monthly and six month cash forecasts. These forecasts will be updated daily using the current investment input, as well as adjustment information provided by Cash Management personnel. Sufficient Treasury securities will be maintained for unscheduled cash needs. It has been determined that Treasury Bills having maximum maturity of 1 year will be used for this purpose. Domiciled in San Francisco, these securities are available throughout a great portion of the business day to meet most emergencies. Because of their Government guarantee, as well as the short maturity, the exposure to market risk is minimal. Due to the make-up of the portfolio participants, an average maturity of six to eighteen months will be maintained. ID GUIDELINES FOR MAINTAINING PORTFOLIO MIX Following are various considerations/limitations as they pertain to specific investment types: A. U.S. Treasury Securities 1) Maximum maturity: authority allows 30 years, however, current policy establishes a five year maximum. 2) Maximum par value total size: None. 3) Maximum par value per name: None 4) Maximum par value per maturity: None. 5) Credit: Full faith and credit of the Federal Government. Treasury Bills are maintained for liquidity, trading, and yield enhancement as the underlying security in a Reverse Repurchase transaction. Treasury strips and full coupon securities are purchased for average maturity preservation, liquidity, and trading. B. Federal Agency Securities 1) Maximum maturity: Authority allows 3 0 years, however, current policy establishes a five year maximum. 2) Maximum par value total size: None. 3) Maximum par value per name: None. 4 4) Maximum par value per maturity: None. 5) Credit: Despite there being no statutory limitations concerning this category, prudent investment practice necessitates constant credit analysis of certain issuing agencies. Although there exists an implicit or explicit government guarantee of the various agency issues, market perception often limits the liquidity of these issues. C. Bankers Acceptances-Domestic/Foreign 1) Maximum maturity: 180 days (This maximum maturity is a criterion used to determine eligibility for purchase by the Federal Reserve. Our authority is based on the eligibility as determined by the Fed. However, this criterion is no longer applicable, since the Fed has discontinued its eligibility requirements and purchases. Currently, a majority of acceptances are created only for 180 days.) 2) Maximum par value total size: None. 3) Maximum par value per name: None. 4) Maximum par value per maturity: None. 5) Credit: a) The history of the acceptance market is spotless on "Failures to redeem." This is true through the years of WWII. b) Geopolitical location is of prime concern when considering potential candidates. Internal, as weU as border political and economic stability of the host country are of prime concern. c) Liquidity as far as both credit risk and d) Although statutory authority does not limit eligibility according to ranking or rating, previously listed general criteria eliminate lesser credits. 5 lilltil;-· ! t:-11 ~· D. Certificates of Deposits 1) Maximum maturity: None. 2) Maximum par value total size: None. 3) Maximum par value per name: None. 4) Maximum par value per maturity: None 5) Credit: a) Criteria concerning loan make-up, LDC exposure, geographic location, market perception, and financial condition all serve to eliminate lesser names. b) Liquidity as far as both credit risk and marketability in the secondary level are addressed. There must be a market for the name in which at least three major dealers will bid or offer at a given moment. E. Collateralized Time Deposits 1) Maximum Par Value per Name: a) Banks, Savings and Loans, and Credit Unions - Shall not exceed net worth. 2) Maximum Par Value total size: None. 3) Maximum Maturity: None 4) Maximum Par Value per Maturity: None 5) Credit: Institutions must be rated average or better, or above a "D", by a recognized rating service utilized by the State Treasurers Office (STO) Investment Division, and must pass a credit evaluation by the STO Staff which may include such criteria as Community Reinvestment Act Rating (CRA), geographic location, market perception, loan diversity, management factors, and overall fiscal soundness. 6 ' . (\ , I In the event an institution holding a deposit is downgraded below acceptable levels for a deposit by the rating agencies, the following steps shall be taken: a) Notify Deposits to monitor Collateral Closely. b) Review financials and update credit report. c) Determine the appropriate plan of action which may include early termination of the time deposit, or allow the time deposit to mature. 6) Collateralization must comply with Government Code, Chapter 4, Bank Deposit Law Section 16500 (et seq.) and the Savings and Loan Association and Credit Union Deposit Law G.C. Section 16600 (et seq.) F. Commercial Paper 1) Maximum maturity: 180 days. 2) Maximum par value total size: 30% of current portfolio. 3) Maximum par value per name: 10% of outstanding commercial paper of issuer. 4) Maximum par value per maturity: None. 5) Credit: a) Rated "Prime" quality as defined by a nationally recognized organization which rates such securities. b) Organized and operating within the United States. c) Have total assets in excess of five hundred million dollars ($500,000,000.00.) 7 _ _,, 3) Maximum par value per name: None. 4) Maximum par value per maturity: None. 5) Credit: Securities eligible for investment under this subdivision shall be within the top three ratings of a nationally recognized rating service. There are few statutory limitations placed on individual categories of authorized investments. However, this does not entitle the investment staff to "carte blanche" participation in these security types. In the absence of direct statutory limitations, the "prodent man role" shall be utilized by the investment staff. As market conditions change, altering credit risk, marketability, yield spreads, and securities availability, application of this rule shall govern any investment decision. This application shall be discussed as soon as time permits with the Chief oflnvestments. At his determination, the situation may be discussed with the full investment committee or brought directly to the attention of the Treasury Management. * Though there is no maximum par value restriction on Reverses, it is the policy of this office to limit outstanding Reverses to no more than I 0% of the total portfolio. For detailed Reverse Repurchase criteria, please refer to the attached addendum. 9 ~-- -ADDENDUM - REVERSE REPURCHASES 1. The Reverse Repurchase Program is designed to augment the overall portfolio yield in a safe and prudent manner. It is not viewed as a tool with which to effect specific portfolio moves or plan major market strategy. 2. Portfolio carries reversed securities at negative book and the re-investment at positive book. As a result, the reported size of the portfolio represents the true cash participation of its members. 3. All reverses are cash matched either to the maturity of the re-investment or an adequately positive cash flow date which is approximate to the maturity of the re- investment. As an example: If cash flow is positive on 01/27/95 and negative on 01/31/95, then the reverse may mature on the 27th, and the re-investment may be taken to the 31st. Cash flow is evened out, and a positive spread is achieved. 4. Only securities already held in the portfolio and unencumbered may be reversed. No item purchased against reverse will be used as a reversible security while the original reverse is outstanding, i.e. do not leverage one liability with another. 5. Against reverse re-investment will be limited to maturities under one year, effectively limiting appropriate securities to generic money market issues. 6. Because money market securities are utilized in all reverse re-investments, the term of each reverse averages 90 days. Currently, the shortest maturity is 12/15/94, and the longest maturity is 03/09/95. 7. No more than 10% of the total portfolio may be invested in Reverse Repurchases (currently at 8.41 %). 8. Because of the role played by the Reverse Program in this office, customized or structured products are not considered appropriate re-investment candidates. All costs, earnings, and spreads are fixed at the beginning of each transaction. 10 FAHR95-39 STATE OF CALIFORNIA OFFICE OF THE TREASURER SACRAMENTO Date: 08/31/95 Page: 01 LOCAL AGENCY INVESTMENT FUND P.O. BOX 942809 SACRAMENTO, CA 94209-0001 AUGUST, 1995 STATEMENT ATTACHMENT "B" MA TT FONG. Treasurer ACCOUNT NUMBER: 70-30-006 COUNTY SANITATION DISTRICTS OF ORANGE COUNTY ATTN: CONTROLLER P.O. BOX 8127 FOUNTAIN VALLEY CA 92728-8127 EFFECTIVE TRANSACTION DATE DATE --------------------BEGINNING BALANCE -REG 08/01/95 08/01/95 08/02/95 08/02/95 08/09/95 08/04/95 08/10/95 08/10/95 08/16/95 08/15/95 08/23/95 08/23/95 08/30/95 08/30/95 ENDING BALANCE -REG NO BOND PROCEEDS GRAND TOTAL REG B/P TOTAL TRAN COUNT 7 0 7 TRAN TYPE ---- RW RW RW RD RW RW RW CONF AUTH TRANSACTION NO CALLER AMOUNT BALANCE ------------------------------------------ 409 MDW 410 MDW 411 MDW 412 GGS 413 MDW 414 MDW 415 MDW SUMMARY TOTAL DEPOSIT AMT $2,500,000.00 $0.00 $2,500,000.00 $17,258,203.36 -$7,250,000.00 $10,008,203.36 -$1,300,000.00 $8,708,203.36 ..:.s1,800,ooo.oo $6,908,203.36 $2,500,000.00 $9,408,203.36 -$1,000,000.00 $8,408,203.36 -$1,000,000.00 $7,408,203.36 -$1,500,000.00 $5,908,203.36 ---------------$5,908,203.36 ---------------$5,908,203.36 =============== TOTAL WITHDRAWAL AMT -$13,850,000.00 $0.00 -$13,850,000.00 SUMMARY OF INVESTMENT OATA FOR THE POOLED MONEY INVESTMENT ACCOUNT A COMPARISON OF AUGUST 1995 WITH AUGUST 1994 (Dollars in Thousands) AUGUST 1995 AUGUST 1994 AVERAGE DAILY PORTFOLIO TOTAL $25,261,428 $27,179,798 TOTAL EARNINGS ON ACCRUAL BASIS $ 126,448 $ 115,163 EFFECTIVE YIELD 5.910 4.989 AVERAGE LIFE OF PORTFOLIO ON THE LAST DAY OF THE MONTH (IN DAYS) 300 435 SECURITY TRANSACTIONS $24,323,070 $26,577,367 TIME DEPOSITS $ 194,695 $ 39,095 AVERAGE WORKDAY INVESTMENT ACTIVITY $ 1,065,990 $ 1,157,237 NUMBER OF SECURITY TRANSACTIONS 564 587 NUMBER OF TIME DEPOSITS 21 7 AVERAGE PRESCRIBED DEMAND COMPENSATING BANK BALANCES $ 142,310 $ 209,359 FOR SERVICES AVERAGE PRESCRIBED DEMAND BANK BALANCES FOR UNCOLLECTED FUNDS $ 155,891 $ 291,684 LOCAL AGENCY INVESTMENT FUND* · SUMMARY OF ACTIVITY AUGUST 1995 BEGINNING BALANCE $9,559,054,549.55 DEPOSITS $1,067,800,000.00 WITHDRAWALS $1,251,045,118.16 CHANGE $ -1,918,370 $ + 11,285 + .921 135 $ -2,254,297 $ + 155,600 $ -91,247 23 + 14 $ -67,049 $ -135,793 MONTH END BALANCE $9,375,809,431.39 •Local Agency Investment Fund Invested Through Pooled Money Investment Account Format °'rltten Report •Overheads •Slldes •FllpCharts {~ Originator wl Department Head Sign Off Anticipated Time , ,v.,u_ FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE DISTRICT 14 AGENDA FOR OCTOBER 11, 1995 F AH R9 5-40: Consideration of motion to change the "Agreement for Purchase and Sale of Capacity Rights in Treatment, Disposal and Sewer Facilities" between County Sanitation District No. 14 and the other County Sanitation Districts of Orange County Summary In September 1995, the staff presented an information report to the Executive Committee regarding the status of the IRWD negotiations. In the meantime, staff learned of the IRWD Wetland Water Supply Project through reports in the newspaper. A review of the EIR for the Project indicates that, if approved, the IRWD will discharge an average of 5 mgd to the duck ponds (and eventually into Upper Newport Bay} from October 21 through March 31. The flow diversion could begin as early as January 1996, if the Regional Water Quality Control Board approves the plan at their December meeting. Removal of this flow from the CSD system will have a significant impact on each of the Districts. This report is intended to update the September 1995 report to show the financial implications to the Districts if the IRWD winter flows are significantly decreased. Because it is uncertain whether the Wetland Water Supply Project will be approved, this report includes financial data based upon historic flows as well as the financial impacts of the 5 mgd diversion to the Upper Newport Bay via the duck ponds. Staff Recommendation Although the financial impact is different if the Wetlands Project is approved, the policy issue remains the same: IRWD should not be expected to pay 15 mgd if they are sending significantly less flow. Therefore, staff recommends the FAHR Committee affirm the Executive Committee's direction to negotiate a change to the 1986 "Agreement for Purchase and Sale of Capacity Rights in Treatment, Disposal and Sewer Facilities" so that the District No. 14 annual flow is based upon the actual average flow per day for the four highest months, providing capacity for higher winter month flows. J:\WPDOC\FIN\CRANE\FPC.MTG\FAHR.95\ITEM\FAHR95.40 '· September 20, 1995 Revised 9/27/95 ( STAFF REPORT FAHR95-40: Consideration of motion to change the "Agreement for Purchase and Sale of Capacity Rights in Treatment, Disposal and Sewer Facilities" between County Sanitation District No. 14 and the other County Sanitation Districts of Orange County Summary In September 1995, the staff presented an information report to the Executive Committee regarding the status of the IRWD negotiations. Subsequently, staff learned of the IRWD Wetland Water Supply Project through reports in the newspaper. A review of the EIR for the Project indicates that, if approved, the IRWD will discharge an average of 5 mgd to the duck ponds (and eventually into Upper Newport Bay) from October 21 through March 31. The flow diversion could begin as early as January 1996, if the Regional Water Quality Control Board approves the plan at their December meeting. Removal of this flow from the CSD system will have a significant impact on each of the Districts. This report is intended to update the September 1995 report to show the financial implications to the Districts if the IRWD winter flows are significantly decreased. Because it is uncertain whether the Wetland Water Supply Project will be approved, this report includes financial data based upon historic flows as well as the financial impacts of the 5 mgd diversion to the Upper Newport Bay via the duck ponds. Background The 1986 Agreement for Purchase and Sale of Capacity Rights was a result of the formation of District No. 14. The Agreement allows a change in the method of calculating the District No. 14 share of capacity in the joint works treatment facilities after 1994-95, if agreeable to both parties. Current policy provides for an "equity percentage" and amount to be calculated each year for each Districts' percentage ownership in the combined joint works treatment facilities including the interplant and ocean outfall facilities. The books and accounts are adjusted and funds are transferred from the buying to the selling Districts. With the exception of District No. 14, the equity percentage calculations are based upon the actual total annual flows for the preceding three fiscal years. The original agreement specified a District No. 14 flow of 15 million gallons per day. A specified flow was used because all of the District No. 14 flow passed through the Irvine Ranch Water District treatment and reclamation plant. Some of this flow can be diverted for agricultural uses in the summer, reducing the annual flow to our plants, but capacity is required for the higher winter months' flow. CSDOC O P.O. Box 8127 0 Fountain Valley, CA 92728-8127 0 Tel. (714) 962-2411 0 FAX (714) 962-3954 FAHR95-40 Page2 September 20, 1995 Revised 9/27 /95 The Irvine Ranch Water District, which funds all of the District No. 14 financial requirements, has asked for the 15 mgd minimum to be reconsidered. Staffs of both agencies have met several times and have agreed that a change is appropriate largely because the monthly flow has never reached a 15 mgd average, has exceeded a 1 O mgd average only 8 times in the last 3 years, and the average daily flows have been 6.3 mgd. Although the annual equity adjustment and subsequent Capital Outlay Revolving Fund (CORF) budget contributions are based upon total annual flow for the other Districts, the flow for District No. 14 is based upon 15 mgd calculation. A calculation is required because the IRWD diverts flow for irrigation in the summer months. Since CSD treatment plant capacity must be based upon the maximum flow that can be reasonably expected, the very low summer flows in District No. 14 distort their fair share. As an example, the percentage change in flows for 1994-95 from the average to the highest month for District No. 14 was 244%, while the change for the other Districts was only 7%. One of the other distinctions of the District No. 14 special relationship with the IRWD relates to the CSD Reserve Policy. All of the funding needs of the District are met by IRWD when the needs arise and most of the reserve funds have been kept and invested by IRWD. This arrangement has caused District No. 14 not to participate fully in the CSD Reserve Policy for long-term capital needs and for potential earthquake, flood damage and liability claims reserves. Staff of both agencies recognize all these differences as well as the needs to be fair and equitable and to pay for facilities based upon use. After evaluating and discussing several alternatives, the following working proposal was developed: • The annual flow for District No. 14 will be calculated by multiplying the actual flow for the highest four months by three to determine a twelve-month flow, beginning with 1995-96. • Proceeds from the resultant incremental sale of District No. 14's share of joint works capital facilities to the other Districts will remain in the District No. 14 accounts and will be used first to satisfy reserve policy requirements, with any excess used to fund future District funding requirements. • Interest earnings on reserve funds will be allocated to District No. 14. Current Situation Had this proposed flow determination been in effect for the past three fiscal years, the District No. 14 share of joint works capital facilities would be 4.58% rather than 6.31% calculated on a three-year average flow. Starting to use this method for 1995-96 will provide for a three-year phase-in of the lower equity share for District No. 14 and higher shares for the other Districts. The one-time cost to the CSD of the change, based upon '· FAHR95-40 Page 3 September 20, 1995 Revised 9/27/95 June 30, 1995 balances, would be $12,062,000. Using the 1995-96 CORF budget as a reference, the ten-year additional joint works capital improvement costs to the other CSDs would be $9,514,000. Implications of the Wetland Water Supply Project If the IRWD can consistently divert 5 mgd during the winter months, then the future capacity requirements for the CSD treatment plants could be reduced. Such a reduction would reduce future capital improvement costs and contributions from each District. However, if the flows are not consistently diverted and are sent to our treatment plants, then capacity for both average and peak flows must be provided. The costs for this additional capacity are shared by the CSD, based upon their flow-based equity percentages. The schedule and graphs presented to the Executive Committee have been redone (attached) to show the potential financial impact on the other CSDs if the IRWD Wetland Water Supply Project is approved. Had the Project and the working proposal been in effect for the past three fiscal years, the District No. 14 share of joint works capital facilities would be 2.90% rather than the 4.58% or the 6.31 % currently calculated on a three-year average flow. The one-time cost to the CSD of the change, based upon June 30, 1995 balances, would be $23,822,000. Using the 1995-96 CORF budget as a reference, the ten-year additional joint works capital improvement costs to the other CSDs would be $18,799,000, rather than the $9,514,000 which was calculated before the Project. Enclosed with this report is a copy of the original tentative working proposal developed by staff. This working proposal includes historical flow charts for District No. 14 and for the other eight Districts, showing the range of average daily flows per month. Also enclosed are schedules showing the difference in future annual joint works capital contributions and the June 30, 1995 equity sale and purchase, assuming the flow calculation alternative had been in effect for the past three years with and without the IRWD Wetland Water Supply Project. All of the calculations in this report and the attachments are based upon historical information. The actual flows going forward will be different and will result in different allocations of CORF improvement costs each year and in different JWTF equity purchases and sales. Should the flows in the District No. 14 service area increase at a faster rate than those in the other Districts, then District No. 14 would be required to buy back some of the JWTF equity and to contribute a higher percentage to annual CORF improvement projects. The assumptions have been kept simple in this presentation in order not to introduce error and to concentrate on the issue of payments based upon use. FAHR95-40 Page4 September 20, 1995 Revised 9/27 /95 Recommendation Although the financial impact is different if the Wetlands Project is approved, the policy issue remains the same: IRWD should not be expected to pay 15 mgd if they are sending significantly less flow. Therefore, staff recommends the FAHR Committee affirm the Executive Committee's direction to negotiate a change to the 1986 "Agreement for Purchase and Sale of Capacity Rights in Treatment, Disposal and Sewer Facilities" so that the District No. 14 annual flow is based upon the actual average flow per day for the four highest months, providing capacity for higher winter month flows. GGS:lc J:\WPDOCIFIN\CRANEIFPC.MTGIFAHR.95\STAFF.RPT\SRFAHR95A0 Attachments .. August 31, 1995 TO: FROM: SUBJECT: MEMORANDUM Distribution &A• / Gary Streed~V?J' IRWD 15 mgd CORF Contribution Baseline Proposal 1. The Boards of Directors of the individual Districts will have to approve any revision to the existing agreement 2. Use actual flow for 4 highest flow months times 3 to determine the District 14 flow for annual equity adjustments and annual share of Joint Works construction requirements (CORF) rather than a fixed 1 S mgd. Rain affects all Districts and the equity percentages are a percent to total calculation, so rain days can be ignored. Allowance for an increased use of the system by all users is already included by using a 4 month average rather than the single high month. 3. If above used to determine the 1994-95 District 14 flow, the 6/30/95 equity percentage would have been 4.58% rather than the 6.31% based on 15 mgd. 4. If 2 and 3, then the 6/30/95 Joint Works equity adjustment for District 14 would be a sale of approximately $12,950,000 rather than the $888,000 sale booked. 5. If 4, then the other Districts would be required to transfer an additional $12,062,000 to District 14. Districts' 1, 2 & 3 shares would total $8,978,000. 6. Over the next 1 O years the other Districts would need to make additional CORF contributions of $9,514,000 to replace the reduced annual CORF contributions from District 14, based on the 95-96 budget 7. District 14 does not currently comply with the entire reserve policy of the other Districts. The $12,950,000 above should be retained within the District to meet these requirements. Page2 8. Reserve Policy Summary Operating dry period reserve @ 50% Operating contingency @ 20% Operating share of insurance Capital reserve (share of $50,000,000) Environmental (share of $5,000,000) Capital share of insurance@ $150,000,000 Total Actual 6/95 866,000 0 0 1,982,000 0 _Q 2,976,000 Per Policy 1,066,000 426,000 0 3,155,000 316,000 9,465,000 14,428,000 9. District 14 has a Reserve Policy deficiency at 6/30/95 of $11,452,000 based on above. 10. Interest earnings will be credited and will remain in District 14, reducing future IRWD contributions. 11. All above estimates are for discussion and are calculated as if the change from 15 mgd had been effective for 1992-93, 1993-94 and 1994-95. Cash transfers required will be phased beginning with the 6/30/96 equity adjustment in which only one year's flow will be based upon the changed flow assumptions. Distribution: Donald F. Mc lntyre Judith Wilson Blake Anderson Ron Young Ron Zenk Gregory P. Heiertz Kathryn Beseau GGS/ C:IOFFICE\WPWINITEMPLATE\MEMOIIRWD.831 ;a MONTHLY FLOWS _., ~ ~ ~ N N W W ~ I ~ ~ ~ ~ ~ ~ ~ ~ CO ~ g g g g g g g g ~ ~ Jul-92 >< _G Aug-92 ... (') j; Sep-92 ::a ~ Oct-92 ..... Nov-92 Dec-92 Jan-93 Feb-93 Mar-93 _,_ Apr-93 May-93 : I : I f 3: Jun-93 I I I I 0 + : : : : : z Jul-93 , , , , -I ,-, I I I I :::C ~ I r l t I !II Aug-93 1 , I , -I -I I I 0 .....1. t i I I .i:,. Sep-93 1 1 , 1 , , -I ' T I I ;::., Q I I I I 0 ii> Oct-93 1 , • 1 z -: : : I -I S:G) Nov-93 , 1 1 , , :::c I I I I I CJ r I I I I "11 Dec-93 1 1 1 , 1 + ' : I I : 0 Jan-94 1 1 , 1 < 0 I I I I < < I I I I -I :f Feb-94 1 , , , 1 "" (1) I I I I ,V -, I I I \ I m ex, Mar-94 ' ' ' ' ' z ,-, I I I I f ~ I I J ' C !!?-Apr-94 i ' i i tA • ~ May-94 Jun-94 Jul-94 _,. Aug-94 Sep-94 Oct-94 Nov-94 Dec-94 Jan-95 Feb-95 Mar-95 Apr-95 :... May-95 ;! I I /" I I I " I _, S:: Jun-95 ~ 10/5/95 Estimated Cost to Change District 14 Annual CORF Contribution From 15MGD to Highest 4 Months IRWD CONTRIBUTION Yr Ended 15MGD Hi 4 Month Cost to CSD No 6/30 Equity% 94-95 % Other Dists 1 2 3 5 6 7 11 13 Total 1996 2,116,000 1,536,000 580,000 60,845 182,291 188,552 22,308 29,055 51,909 39,084 5,957 580,000 1997 4,737,000 3,443,000 1,294,000 135,747 406,697 420,665 49,769 64,822 115,812 87,198 13,290 1,294,000 1998 4,713,000 3,426,000 1,287,000 135,012 404,497 418,390 49,500 64,471 115,185 86,726 13,218 1,287,000 1999 3,775,000 2,745,000 1,030,000 108,052 323,724 334,842 39,615 51,597 92,184 69,408 10,578 1,030,000 2000 2,302,000 1,674,000 628,000 65,880 197,377 204,156 24,154 31,459 56,205 42,319 6,450 628,000 2001 3,437,000 2,498,000 939,000 98,505 295,123 305,259 36,115 47,039 84,040 63,276 9,644 93!' "' 2002 3,437,000 2,498,000 939,000 98,505 295,123 305,259 36,115 47,039 84,040 63,276 9,644 93\ 2003 3,437,000 2,498,000 939,000 98,505 295,123 305,259 36,115 47,039 84,040 63,276 9,644 939,0U0 2004 3,437,000 2,498,000 939,000 98,505 295,123 305,259 36,115 47,039 84,040 63,276 9,644 939,000 2005 3,437,000 2,498,000 939,000 98,505 295,123 305,259 36,115 47,039 84,040 63,276 9,644 939,000 Total 34,828,000 25,314,000 9,514,000 998,063 2,990,200 3,092,898 365,923 476,597 851,494 641,113 97,712 9,514,000 Dist Equity 10.01% 29.99% 31.02% 3.67% 4.78% 8.54% 6.43% 0.98% 95.42% Dist % to Total 10.49% 31.43% 32.51% 3.85% 5.01% 8.95% 6.74% 1.03% 100.00% One Time Equity Adjust 1995 (888,000) (12,950,000) 12,062,000 1,265,360 3,791,023 3,921,224 463,923 604,238 1,079,538 812,813 123,881 12,062,000 IRWD_FL4.XLS 7:20AM MONTHLY FLOWS ..... ~ 0 -~ ~ N N w w (11 ,o 0 (11 0 (11 0 c.,, !=' (11 -C> C> C> C> C> o 0 C> <D "Tl (11 i 0 0 0 0 0 0 0 0 Jul-92 >< r-Aug-92 !J> (") :I: Sep-92 )> ::0 --i Oct-92 w Nov-92 Dec-92 Jan-93 Feb-93 Mar-93 -I I I I I (11 Apr-93 I I 3 I I I I I I (C May-93 -I I I c.. I I I I 0 3: I I I CD 0 Jun-93 . I T I c.. + I I I I C: z I I I I I (') Jul-93 .. I I I I ---t CD I I I c.. :I: 0 I I I I iii" Aug-93 I I l I I "Tl --t -I I I I I a 0 ..... I I I I I 3 J:>. Sep-93 .. I I I I I 3: -I I I I I I :::a I I I I 0 0 Oct-93 I I I I :§: -z ~ I I I I 0 I I I I --t s:: Nov-93 I I I I "Tl :I: G) I I I 0 0 I I I =E: .,, Dec-93 I I I ' CJ) r-I I I I + I ' z 0 Jan-94 I I I I 0 :E I I I < CD 0 I I I 3 --t -Feb-94 I =:,-I I I I 0-,, CD I I I I CD m -, ' I I -, 00 Mar-94 I I I -I z 0 ,, I I =:,-C -, 1n· Apr-94 ' 1 1 C: en -I J I s: )> I I I May-94 I I I I D> < I I 1 I n CD I I '. I =:,- Jun-94 Jul-94 ., Aug-94 Sep-94 Oct-94 Nov-94 Dec-94 Jan-95 Feb-95 Mar-95 Apr-95 --.I ~ May-95 I a, ,~ I I I ""\ I I J, )> s:: Jun-95 -u ~ . . .. 10/5/95 Estimated Cost to Change District 14 Annual CORF Contribution From 15MGD to Highest 4 Months IRWD Flows Reduced for 5 mgd to Creek From Nov Thru March IRWD CONTRIBUTION Yr Ended 15 MGD Net Hi 4 Month Cost to CSD No 6/30 Equity% 94-95 % Other Dists 1 2 3 5 6 7 11 13 Total 1996 2,116,000 972,000 1,144,000 120,055 359,341 371,829 44,063 57,259 102,501 77,170 11,782 1,144,000 1997 4,737,000 2,180,000 2,557,000 268,340 803,177 831,091 98,488 127,982 229,103 172,486 26,334 2,557,000 1998 4,713,000 2,169,000 2,544,000 266,976 799,094 826,865 97,987 127,331 227,938 171,609 26,200 2,544,000 1999 3,775,000 1,738,000 2,037,000 213,770 639,840 662,077 78,459 101,955 182,512 137,408 20,978 2,037 r ~ I 2000 2,302,000 1,060,000 1,242,000 130,340 390,124 403,682 47,838 62,164 111,281 83,781 12,791 1,24~ \ , 2001 3,437,000 1,582,000 1,855,000 194,670 582,673 602,923 71,449 92,846 166,205 125,131 19,104 1,855,l.Jucf 2002 3,437,000 1,582,000 1,855,000 194,670 582,673 602,923 71,449 92,846 166,205 125,131 19,104 1,855,000 2003 3,437,000 1,582,000 1,855,000 194,670 582,673 602,923 71,449 92,846 166,205 125,131 19,104 1,855,000 2004 3,437,000 1,582,000 1,855,000 194,670 582,673 602,923 71,449 92,846 166,205 125,131 19,104 1,855,000 2005 3,437,000 1,582,000 1,855,000 194,670 582,673 602,923 71,449 92,846 166,205 125,131 19,104 1,855,000 Total 34,828,000 16,029,000 18,799,000 1,972,830 5,904,938 6,110,159 724,081 940,918 1,684,359 1,268,110 193,605 18,799,000 Dist Equity 10.19% 30.50% 31.56% 3.74% 4.86% 8.70% 6.55% 1.00% 97.10% Dist% to Total 10.49% 31.41% 32.50% 3.85% 5.01% 8.96% 6.75% 1.03% 100.00% One Time Equity Adjust 1995 (888,000) (24,710,000) 23,822,000 2,499,961 7,482,709 7,742,763 917,552 1,192,327 2,134,412 1,606,942 245,335 23,822,000 IRWD _FL8.XLS 7:20AM .,-,. '• Fonnat 0 Written Report • Overheads • Slides Originato~ Department Head Sign O . L~9 Anticipated Time ,,w___,.._ 0 Flip Charts FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR95-41: Summary AGENDA FOR OCTOBER 11, 1995 Consideration of motion to receive and file staff report regarding performance monitoring of Pacific Investment Management Company The purpose of this report is to provide the Finance, Administration & Human Resources Committee with status information about the Districts' investment management program, and the performance monitoring of the Districts' external investment manager, Pacific Investment Management Company (PIMCO). Staff Recommendation Information item only. J:\WPDOC\FIN\CRANE\FPC.MTG\FAHR.95\ITEM\FAHR95.41 October 11, 1995 FAHR95-41: Background STAFF REPORT Performance Monitoring of Pacific Investment Management Company As reported at the last Committee meeting, $293.1 million in maturing Treasury Bill proceeds was deposited on September 7, 1995, with the Districts' safekeeping bank, Mellon Trust, for initial funding of the Districts' external investment management program, to be managed by PIMCO, the Districts' investment manager. The short-term portfolio received $60 million, and the long-term portfolio was funded with $233.1 million. Portfolio Structuring During the month of September, PIMCO has completed approximately 75 transactions, purchasing and selling securities to properly structure the Districts' two investment portfolios in accordance with the Districts' Investment Policy Statement. Monitoring & Reporting -Monthly Reports Also during the month, staff has toured the PIMCO facilities and trading desk, and met with the Districts' Account Managers at PIMCO to review ongoing performance monitoring and reporting requirements. The attached sample Monthly Report is a customized product for the Districts. Monthly Reports will be available from PIMCO to the Districts after the fifth business day following the end of the preceding month. Given the timing of agenda mailing dates for Committee meetings, and availability of the PIMCO Monthly Reports occurring after the mailing dates, the Monthly Reports will be distributed at Committee meetings. A Monthly Report for the partial month of September will be prepared and submitted to the Committee. Please note that since September has been a structuring period for PIMCO, the Districts' Investment Advisor, Callan Associates, has recommended that actual performance evaluation of the portfolios and the investment manager should begin on October 1, 1995. CSDOC O P.O. Box 8127 0 Fountain Valley, CA 92728-8127 0 Tel. (714) 962-2411 0 FAX (714) 962-3954 FAHR95-41 Page2 October 11 , 1995 Monthly Bank Statements from Mellon Trust, detailing portfolio transactions and account balances, will also be available to the Districts for review by the Committee on the same schedule as above. The value of the Districts' portfolios will be "marked to market" (converted to current value) at the end of each month. Staff is investigating the on-line reporting services available from Mellon Trust with the goal of implementing an on-line system to enhance the Districts' investment monitoring and reporting capabilities. Monthly reports from both PIMCO and Mellon Trust will be forwarded to Callan for their ongoing performance review and reporting responsibilities to the Districts. Monitoring & Reporting -Quarterly Reports Callan will prepare and present to the Committee a Quarterly Performance Report which will evaluate portfolio performance and the performance of the investment manager, using the duration and benchmark measures previously approved by the Committee for this purpose. The duration for the short-term and long-term portfolios is 90 days and 2.5 years, respectively. There are two benchmarks for each portfolio. The first is a Market Index Benchmark which reflects the rate-of-return for investments with similar maturities. The second is a Peer Group Benchmark which reflects the returns achieved by other active money managers with similar investment objectives. The benchmarks are summarized as follows: Liquid Operating Monies • The three-month T-Bill rate will be the Market Index Benchmark for the short-term operating fund. • The Callan Active Cash Fixed-Income Style Group will be the Peer Group Benchmark for the short-term operating fund. Long-Term Operating Monies • The Merrill Lynch Government and Corporate one to five-year Maturity Index will be the Market Index Benchmark for the long-term fund. FAHR95-41 Page 3 October 11, 1995 n • The Callan Defensive Fixed-Income Style Group will be the Peer Group Benchmark for the long-term fund. Staff will continue to develop and enhance the monitoring and reporting systems for the Districts' investment management program, and will keep the Committee fully informed on new developments. Staff Recommendation Staff recommends that this report be received and filed. J:\WPDOCIFIN\CRANE\FPC.MTG\FAHR.95\STAFF.RP1'SRFAHR95.41 MONTHLY REPORT COUNTY SANITATION DISTRICTS OF ORANGE COUNTY INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ending September 30, 1995) Liquid Operating Monies 14.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value: Historical Cost: 14.1.2 MODIFIED DURATION Of Portfolio: Of Index: 14.1.3 1% INTEREST RATE CHANGE Dollar Impact (gain/loss) of 1 % Change: 14.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: (see attached schedule) 14.1.5 PORTFOLIO MATURITY % of Portfolio Maturing within 90 days: 14.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: 14.1.7 SECURITIES BELOW "A" RATING % of Portfolio Below "A": 14.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" 14.1.9 PORTFOLIO PERFORMANCE Portfolio Total Rate of Return: 1 Month: 3 Months: 12 Months: Year-to-Date: Index Total Rate of Return: 1 Month: , ... $ $ -' .. / $ ~ ~ - MONTHLY REPORT COUNTY SANITATION DISTRICTS OF ORANGE COUNTY INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ending September 30, 1995) Long Term Operating Monies 14.1.1 PORTFOLIO COST AND MARKET V ALOE Current Market Value: Historical Cost: 14.1.2 MODIFIED DURATION Of Portfolio: Of Index: 14.1.3 1 % INTEREST RATE CHANGE Dollar Impact (gain/loss) of 1 % Change: 14.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: (see attached schedule) 14.1.5 PORTFOLIO MATURITY Not Required for this Portfolio 14.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: 14.1.7 SECURITIES BELOW "A" RATING % of Portfolio Below II A 11 : 14.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance 11 14.1.9 PORTFOLIO PERFORMANCE Portfolio Total Rate of Return: 1 Month: 3 Months: 12 Months: Year-to-Date: Index Total Rate of Return: 1 Month: $ ~ $ -~ $ \ ' I - QUARTERLY REPORT COUNTY SANITATION DISTRICTS OF ORANGE COUNTY INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the quarter ending September 30, 1995) Liquid Operating Monies 14.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Vafue: Historical Cost: 14.1.2 MODIFIED DURATION Of Portfolio: Of Index: 14.1.3 1% INTEREST RATE CHANGE Dollar Impact (gain/loss) of 1 % Change: 14.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: ( see attached schedule) 14.1.5 PORTFOLIO MATURITY % of Portfolio Maturing within 90 days: 14.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: 14.1.7 SECURITIES BELOW "A" RATING % of Portfolio Below "A": 14.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" 14.1.9 PORTFOLIO PERFORMANCE Portfolio Total Rate of Return: 1 Month: 3 Months: 12 Months: Year-to-Date: Index Total Rate of Return: 1 Month: - $ $ ' ) ,, .... $ -----. \ - QUARTERLY REPORT COUNTY SANITATION DISTRICTS OF ORANGE COUNTY INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the quarter ending September 30, 1995) Long Term Operating Monies 14.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value: Historical Cost: 14.1.2 MODIFIED DURATION Of Portfolio: Of Index: 14.1.3 1 % INTEREST RA TE CHANGE Dollar Impact (gain/loss) of 1 % Change: 14.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: ( see attached schedule) 14.1.5 PORTFOLIO MATURITY Not Required for this Portfolio 14.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: 14.1.7 SECURITIES BELOW "A" RATING % of Portfolio Below "A": 14.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" 14.1.9 PORTFOLIO PERFORMANCE Portfolio Total Rate of Return: 1 Month: . 3 Months: 12 Months: Year-to-Date: Index Total Rate of Return: 1 Month: $ ( ,11 $ . __ __., $ , ' PROGRAM NAME: PI0022 RUN DATE: 10/04/95 ACCOUNT NO: 203 CUSIP DESCRIPTION TRADE NO COUPON MATURITY TICKET# TRADE SETTLE Buy 171196AN8 CHRYSLER CORP DEB 9/07/95 21 10.4000% 8/01/99 A-S 9/12/95 090795 0109 17120QNT4 CHRYSLER FIN CORP MTN DD 4/13/95 9/07/95 23 7.2700% 4/13/98 A-S 9/12/95 090795 0070 *REVISION OF INTEREST* 17120QPY1 CHRYSLER FIN MTN SER-P DD7/18/95 9/07/95 7 6.2600% 7/20/98 A· S 9/12/95 090795 0071 9850906A2 BOSTON RESERVE DEPOSIT ACCOUNT 9/07/95 6 4.0000% 12/31/24 A1 S 9/07/95 090795 1000 17120QJJ1 CHRYSLER FIN MTN SER N 1/11/95 9/08/95 33 8.1600% 1/13/97 A-* 9/13/95 090895 0100 17120QJJ1 CHRYSLER FIN MTN SER N 1/11/95 9/08/95 42 8.1600% 1/13/97 A· S 9/13/95 090895 0100-B *REVISION OF PRICE* 17120QKH3 CHRYSLER FIN CORP MTN 0101/31/95 9/08/95 27 8.0800% 1/31/97 A-S 9/13/95 090895 0078 17120QLT6 CHRYSLER FIN MTN SER-N DTD3/3/95 9/08/95 32 7.3800% 3/17/97 A· S 9/13/95 090895 0088 29348PAC8 ENOGEX MTN 8/7/95 PRIV 144-A 9/08/95 43 6.7700% 8/07/00 A-S 9/13/95 090895 0082 345402DZ1 FORD MTR CR CO MTN FRN DT11/8/93 9/08/95 24 5.9400% 11/09/98 A S 9/13/95 090895 0044 345402HJ3 FORD MTR CR CO MTN FRN OD3/30/94 9/08/95 29 5.4900% 3/30/99 A S 9/13/95 090895 0099 *INFO SHEET ATTACHED* T R A N S A C T I O N J O U R N A L 8/31/95 THRU 9/30/95 County Sanitation Districts-Orange Co. ORIGINAL FACE PAR/SHARES/QTY BROKER PRICE MLP 1,500,000.00 106.8880000 SAL 2,900,000.00 101.8240000 SAL 1,000,000.00 99.3160000 1.00 100.0000000 GSC 1,500,000.00 102.3180000 GSC 1,500,000.00 102.3300000 DWR 465,000.00 102.3597000 GSC 1,500,000.00 101.4760000 MLP 5,ooo,ooo.oo 100.1610000 PRU 4,000,000.00 99.2620000 PRU 7,100,000.00 98.5880000 FACTOR COMMISSIONS PRINCIPAL SEC FEE 1,603,320.00 2,952,896.00 993,160.00 1.00 1,534,770.00 1,534,950.00 475,972.61 1,522,140.00 5,008,350.00 3,970,480.00 6,999,748.00 Pay Codes: 'S' indicates SETTLED, '*' indicates UNSETTLED PAGE: 1 AS OF DATE: 9/30/95 BANK ACCT: OCSF0752222 GAIN/LOSS DELIVERY CURRENCY INTEREST B/S ISITC NET AMOUNT DTC USD 17,766.67 1,621,086.67 ISITC SDF USD 87,260.19 3,040,156.19 ISITC SDF 9,390.00 1,002,550. ND ISITC USD 1.00 SDF USD 60,520.00 1,595,290.00 ISITC SDF USD 60,520.00 1,595,470.00 18,577.27 58,425.00 ISITC SDF USD 494,549.88 ISITC SDF ~ 1,580,565 , !~_~,) SDF USD 33,850.00 5,042,200.00 ISITC SDF USD 23,434.52 3,993,914.52 ISITC SDF USD 80,093.84 7,079,841.84 ISITC PROGRAM NAME: PI0022 RUN DATE: 10/04/95 ACCOUNT NO: 203 CUSIP DESCRIPTION TRADE NO COUPON MATURITY .!B~Y TICKET# 436904AP1 HOME SAVINGS OF AMERICA SUB NT 25 10.5000% 6/12/97 A-. s 090895 0045 524909ADO LEHMAN BROS INC SR SUB NOTE 26 7.0000% 5/15/97 A s 090895 0081 718154BB2 PHILIP MORRIS DEB 28 9.2500% 2/15/00 A s 090895 0094 912794T38 US TREASURY BILLS 14 5.6900% 9/21/95 AAA s 090895 0040 *CONFIRMATION ONLY* 912794T38 US TREASURY BILLS 15 5.6900% 9/21/95 AAA s 090895 0040 *CONFIRMATION ONLY* AS151206A ASSOC CORP OF NO AMERICA DISC NT 10 5.6800% 12/06/95 A1+ s 090895 0003-A *CONFIRMATION ONLY* FH150911A F H L MC DISC NT* 18 5.5800% 9/11/95 A1+ s 090895 0042 *CONFIRMATION ONLY* FN151103A FNMA DISC NT* 16 5.5800% 11/03/95 A1+ s 090895 0041 *CONFIRMATION ONLY* ON151208A ONTARIO HYDRO DISC NT 11 5.6600% 12/08/95 A1+ s 090895 0006-A *CONFIRMATION ONLY* UTR50911B US TREASURY REPO 19 5.7300% 9/11 /95 AAA s 090895 0005-A *CONFIRMATION ONLY* T R A N S A C T I O N J O U R N A L 8/31/95 THRU 9/30/95 County Sanitation Districts-Orange Co. TRADE SETTLE 9/08/95 9/13/95 9/08/95 9/13/95 9/08/95 9/13/95 9/08/95 9/08/95 9/08/95 9/08/95 9/08/95 9/08/95 ORIGINAL FACE PAR/SHARES/QTY 1,750,000.00 1,000,000.00 4,000,000.00 50,000,000.00 11,000,000.00 11,500,000.00 BROKER PRICE PRU 102.1128000 PRU 100.7520000 MSC 110.0120000 FOB 99.7945277 FOB 99.7945277 DIR 98.5957777 NOTE: PHYSICAL PEICES: 2X5MM, 1X1MM, 1X500K 9/08/95 GSC 9/08/95 46,000,000.00 99.9535000 NOTE: CUSIP 313396LP6 9/08/95 MLP 9/08/95 46,000,000.00 99.1320000 NOTE: CUSIP 313588NU5 9/08/95 DOM 9/08/95 11,000,000.00 98.5692778 9/08/95 SLH 9/08/95 46,000,000.00 100.0000000 NOTE: COLL. 912827N99 23.4MM VS 22.635MM 912827WT5 23.205MM VS 23.365MM FACTOR COMMISSIONS PRINCIPAL SEC FEE 1,786,974.00 1,007,520.00 4,400,480.00 5.69000000 49,897,263.89 5.69000000 10,977,398.06 11,338,514.44 45,978,610.00 45,600,720.00 10,842,620.56 46,000,000.00 Pay Codes: 'S' indicates SETTLED, '*' indicates UNSETTLED PAGE: 2 AS OF DATE: 9/30/95 BANK ACCT: OCSF0752222 GAIN/LOSS DELIVERY CURRENCY INTEREST B/S ISITC NET AMOUNT OTC USO 46,447.92 1,833,421.92 ISITC SOF USO 22,944.44 1,030,464.44 I$'-·- DTC t.. 28,777.78 4,429,257.78'__, ISITC FBE USD 49,897,263.89 ISITC FBE USD 10,977,398.06 ISITC PHY USD 11,338,514.44 ISITC FBE USD 45,978,610 .jV' - Ir FBE USD 45,600,720.00 IS ITC PHY USD 10,842,620.56 IS ITC FBE USD 46,000,000.00 / PROGRAM NAME: PI0022 RUN DATE: 10/04/95 ACCOUNT NO: 203 CUSIP DESCRIPTION TRADE NO COUPON MATURITY TICKET# TRADE SETTLE T R A N S A C T I O N J O U R N A L 8/31/95 THRU 9/30/95 County Sanitation Districts-Orange Co. ORIGINAL FACE PAR/SHARES/QTY BROKER PRICE FACTOR COMMISSIONS PRINCIPAL SEC FEE "' PAGE: 3 AS OF DATE: 9/30/95 BANK ACCT: OCSF0752222 GAIN/LOSS DELIVERY CURRENCY INTEREST B/S ISITC NET AMOUNT . ----------------------------------·······------------------------------·------------------------· Bi.Jl WA151006A WAL-MART STORES DISC NT* 9/08/95 JPM 12 5.7100% 10/06/95 A1+ s 9/08/95 11,500,000.00 99.5558888 090895 0004-B *CONFIRMATION ONLY* NOTE: CUSIP 93114BX65 912794T38 US TREASURY BILLS 9/11/95 FOB 38 5.7000% 9/21/95 AAA s 9/11/95 50,000,000.00 99.8416666 091195 0001 *CONFIRMATION ONLY* 912794T38 US TREASURY BILLS 9/11/95 FOB 39 5.7000% 9/21/95 AAA s 9/11/95 9,400,000.00 99.8416666 091195 0001 *CONFIRMATION ONLY* UTR50912A US TREASURY REPO 9/11/95 DAI 40 5.7500% 9/12/95 AAA s 9/11/95 32,500,000.00 100.0000000 091195 0007 *CONFIRMATION ONLY* NOTE: COLL. 23.060MM 912810DH8 UTR50913B US TREASURY REPO 9/12/95 SLH 49 5.7000% 9/13/95 AAA s 9/12/95 29,400,000.00 100.0000000 091295 0010 *CONFIRMATION ONLY* NOTE: COLLATERAL= 26.610MM 912827R87 NQ151110A NEW SOUTH WALES TSY CORP DSC NT* 9/13/95 BAS 52 5.6600% 11/10/95 A1+ s 9/13/95 5,500,000.00 99.0881111 091395 0008-B *CONFIRMATION ONLY* NOTE: CUSIP: 64880KYA8 UTR50914B US TREASURY REPO 9/13/95 DAI 53 5.7800% 9/14/95 AAA s 9/13/95 6,600,000.00 100.0000000 091395 0009-B *CONFIRMATION ONLY* NOTE: COLLATERAL= 6.230MM 912827S29 QT951212A QUEENSLAND TSY CORP DISC NT* 9/14/95 MLP 58 5.6300% 12/12/95 A1+ s 9/14/95 400,000.00 98.6081400 091495 0004 *CONFIRMATION ONLY* NOTE: CUSIP: 74830SZC6 37042RKQ4 GEN MTR ACC CORP MTN DTD1/10/95 9/18/95 JPM 65 8.6250% 1/10/00 A-s 9/21/95 3,000,000.00 107.5690000 091895 0082 37042RPM8 GEN MTRS ACC CORP MTN 2/3/95 9/18/95 JPM 66 8.3750% 2/03/99 A-s 9/21/95 3,700,000.00 105.7200000 091895 0083 Pay Codes: 'S' indicates SETTLED, '*' indicates UNSETTLED 11,448,927.22 5.70000000 49,920,833.33 5.70000000 9,385,116.67 32,500,000.00 29,400,000.00 5,449,846.11 6,600,000.00 394,432.56 3,227,070.00 3,911,640.00 122,187.50 146,329.86 SDF FBE FBE FBE FBE SDF FBE SDF SDF SDF USO 11,448,927.22 ISITC USO 49,920,833.33 ':) 9,385,116.67 ISITC USO 32,500,000.00 USO 29,400,000.00 USO 5,449,846.11 ISITC U":.-...... 6,600,ooor \ USO 394,432.56 IS ITC USO 3,349,257.50 ISITC USO 4,057,969.86 ISITC PROGRAM NAME: PI0022 RUN DATE: 10/04/95 T R A N S A C T I O N J O U R N A L 8/31/95 THRU 9/30/95 ACCOUNT NO: 203 County Sanitation Districts-Orange Co. CUSIP DESCRIPTION TRADE NO COUPON MATURITY TICKET# TRADE SETTLE .!!.!:!Y 718154BB2 PHILIP MORRIS DEB 9/18/95 63 9.2500% 2/15/00 A S 9/21/95 091895 0084 81238XUJ8 SEARS ROEBUCK CO MTN DTD 2/28/95 9/18/95 64 7.6900% 2/27/98 A S 9/21/95 091895 0087 31359CBM6 FNMA SR UNSUB BD 9/20/95 67 6.8500% 5/26/00 AAA S 9/21/95 092095 0033 * U R G E N T * FH151215A F H L MC DISC NT* 9/21/95 70 5.4700% 12/15/95 A1+ S 9/21/95 092195 0019 ORIGINAL FACE PAR/SHARES/QTY BROKER PRICE PRU 5,000,000.00 110.0660000 MSC 1,000,000.00 103.1860000 MLP 25,000,000.00 101.4062500 GSC 1,500,000.00 98.7084722 *CONFIRMATION ONLY* NOTE: CUSIP: 313396QN6 FH151218A F H L MC DISC NT* 9/21/95 71 5.4700% 12/18/95 A1+ S 9/21/95 092195 0020 GSC 22,000,000.00 98.6628889 *CONFIRMATION ONLY* NOTE: CUSIP 313396QR7 FL151023A FEDERAL HOME LOAN BANK DISC NT* 9/21/95 69 5.5700% 10/23/95 A1 S 9/21/95 092195 0001 FOB 44,000,000.DO 99.5048888 *CONFIRMATION ONLY* NOTE: CUSIP: 313384NH8 UTR50922A US TREASURY REPO 9/21/95 72 5.6000% 9/22/95 AAA S 9/21/95 092195 0024-C MLP 18,700,000.00 100.0000000 FACTOR COMMISSIONS PRINCIPAL SEC FEE 5,503,300.00 1,031,860.00 25,351,562.50 1,480,627.08 21,705,835.56 43,782,151.11 18,700,000.00 *CONFIRMATION ONLY* NOTE: COLLATERAL:.CUSIP 912827S94, FACE 18,700,000 UTR50925A US TREASURY REPO 9/22/95 76 5.5700% 9/25/95 AAA S 9/22/95 092295 0002-B FCH 13,200,000.00 100.0000000 *CONFIRMATION ONLY* NOTE: COLL: 912827U91 13.385M AT151103D AMERICAN TELEPHONE & TEL DIS NT* 9/25/95 80 5.7200% 11/03/95 A1+ S 9/25/95 092595 0001 MLP 11,000,000.00 99.3803333 *CONFIRMATION ONLY* NOTE: CUSIP 03018BY37 UTR50926A US TREASURY REPO 9/25/95 81 5.6500% 9/26/95 AAA S 9/25/95 092595 0006 DAI 2,700,000.00 100.0000000 *CONFIRMATION ONLY* NOTE: COLLAT: 2.810MM CUSIP 912827J94 Pay Codes: 'S' i ndi cat es SETTLED, '*' i ndi cat es UNSETTLED 13,200,000.00 10,931,836.67 2,700,000.00 PAGE: 4 AS OF DATE: 9/30/95 BANK ACCT: OCSF0752222 GAIN/LOSS DELIVERY CURRENCY INTEREST B/S ISITC NET AMOUNT DTC USD 46,250.00 5,549,550.00 ISITC SDF USD 36,313.89 1,068,173.89 547,048.61 I~,--- FBE \..__ __ 25,898,611.11 ISITC FBE USD 1,480,627.08 ISITC FBE USD 21,705,835 .56 I SITC FBE USD 43,782, 151 . 11 ISITC FBE ~ 18, 700,000- FBE USD 13,200,000.00 SDF USD 10,931,836.67 ISITC FBE USD 2,700,000.00 PROGRAM NAME: PI0022 RUN DATE: 10/04/95 ACCOUNT NO: 203 CUSIP DESCRIPTION TRADE NO COUPON MATURITY ~!!Y UTR50927A US TREASURY REPO TICKET# 85 5.5500% 9/27/95 AAA s 092695 0004 *CONFIRMATION ONLY* UTR50928C US TREASURY REPO 88 5.7700% 9/28/95 AAA s 092795 0007 *CONFIRMATION ONLY* 3134AOMQ2 FED HM LN DEB DD 10/2/95 92 6.7200% 10/02/00 AAA • 092895 0065 912827R46 US TREASURY NOTE 94 7.1250% 9/30/99 AAA * 092895 0121 * U R G E N T * 912827R46 US TREASURY NOTE 95 7.1250% 9/30/99 AAA • 092895 0121 * U R G E N T * UTR50929C US TREASURY REPO 91 5.8800% 9/29/95 AAA s 092895 0001-B *CONFIRMATION ONLY* 912827R46 US TREASURY NOTE 109 7.1250% 9/30/99 AAA * 092995 0084 * U R G E N T * UTR51002A US TREASURY REPO 101 6.2000% 10/02/95 AAA s T R A N S A C T I O N J O U R N A L 8/31/95 THRU 9/30/95 County Sanitation Districts-Orange Co. TRADE SETTLE 9/26/95 9/26/95 ORIGINAL FACE PAR/SHARES/QTY 27,700,000.00 NOTE: COLLAT:27.205MM 9/27/95 9/27/95 27,600,000.00 NOTE: COLLAT: 912827B92 9/28/95 10/02/95 25,000,000.00 9/28/95 10/02/95 50,000,000.00 9/28/95 10/02/95 42,000,000.00 9/28/95 9/28/95 27,600,000.00 BROKER PRICE FCH 100.0000000 CUSIP 912827C83 DAI 100.0000000 25.980MM MCD 100.0000000 BRS 103.5937500 BRS 103.5937500 DAI 100.0000000 NOTE: COLLATERAL: 912794X82 28.995MM 9/29/95 SAL 10/02/95 5,000,000.00 103.8593750 9/29/95 DAI 9/29/95 27,600,000.00 100.0000000 FACTOR COMMISSIONS PRINCIPAL SEC FEE 27,700,000.00 27,600,000.00 25,000,000.00 51,796,875.00 43,509,375.00 27,600,000.00 5 , 192,968. 75 27,600,000.00 092995 0007-A *CONFIRMATION ONLY* NOTE: COLLATERAL: 912827L67 28.580MM 9850906A2 BOSTON RESERVE DEPOSIT ACCOUNT 9/30/95 115 3.9900% 12/31/24 A1 s 9/30/95 384,868.73 100.0000000 384,868.73 Pay Codes: 'S' indicates SETTLED, '*' indicates UNSETTLED .... PAGE: 5 AS OF DATE: 9/30/95 BANK ACCT: OCSF0752222 GAIN/LOSS DELIVERY CURRENCY INTEREST B/S ISITC NET AMOUNT FBE USO 27,700,000.00 FBE USO 27,600,000.00 --.. I FBE lh. __ ,, 25,000,000.00 ISITC FBE USO 19,467.21 51,816,342.21 ISITC FBE USO 16,352.46 43,525,727.46 ISITC FBE USO 27,600,000.00 FBE USO 1,946.72 5, 194,915./ l ( FBE USO 27,600,000.00 ND USO 384,868.73 ) PROGRAM NAME: Pl0022 RUN DATE: 10/04/95 T R A N S A C T I O N J O U R N A L 8/31/95 THRU 9/30/95 ACCOUNT NO: 203 County Sanitation Districts-Orange Co. CUSIP DESCRIPTION TRADE NO COUPON MATURITY ~~l Tl CKET # TRADE SETTLE 17120QJJ1 CHRYSLER FIN MTN SER N 1/11/95 9/08/95 41 8.1600% 1/13/97 CANCELLED * 9/13/95 090895 0100 Sell 29348PAC8 ENOGEX MTN 8/7/95 PRIV 144-A 44 6.7700% 8/07/00 A-S 9/11/95 9/13/95 ORIGINAL FACE PAR/SHARES/QTY BROKER PRICE GSC 1,500,000.00-102.3180000 ******TOTALS****** 5,000,000.00 MLP 100.1670000 091195 0034 DELIVER TO: SDF DTC# 5132 RE: Merrill Lynch PF&S FN151103A FNMA DISC NT* 9/25/95 82 5.5800% 11/03/95 A1+ S 9/26/95 092595 0035-A MLP 25,000,000.00 99.1320000 *URGENT* NOTE: CUSIP 313588NU5 DELIVER TO: ABA# 0210-0012-8 CHEMICAL NYC/MERRILL FH151218A F H L MC DISC NT* 9/28/95 97 5.4700% 12/18/95 A1+ * 10/02/95 SLH 22,000,000.00 98 .6628889 092895 0078 *URGENT* NOTE: CUSIP 313396QR7 DELIVER TO: ABA# 0210-0012-8 CHEMICAL NYC/LEHMAN ******TOTALS****** Pay Codes: 'S' indicates SETTLED, '*' indicates UNSETTLED FACTOR COMMISSIONS PRINCIPAL SEC FEE 1,534,770.00- 785,900,244.85 5,008,350.00 5.58000000 24,783,000.00 5.60000000 21,705,835.56 51,497,185.56 PAGE: 6 AS OF DATE: 9/30/95 BANK ACCT: OCSF0752222 GAIN/LOSS DELIVERY CURRENCY INTEREST B/S ISITC NET AMOUNT SDF USD 60,520.00-1,595,290.00- 33,850.00 SDF ISITC -------------- 787,323,628.73 '-..,_.,-USD 5,042,200.00 ISITC FBE USD 69,750.00 24,852,750.00 ISITC FBE USD 30,653.33 21,736,488.89 ISITC 51,631,438.89 PROGRAM NAME: PI0022 RUN DATE: 10/04/95 T R A N S A C T I O N J O U R N A L 8/31/95 THRU 9/30/95 ACCOUNT NO: 603 County Sanitation Districts-Orange CO.(Liq-Op) CUSIP DESCRIPTION TRADE NO COUPON MATURITY TICKET# ~!:!:i 9850906A2 BOSTON RESERVE DEPOSIT ACCOUNT 4 4.0000% 12/31/24 A1 s 090795 1000 912794T38 US TREASURY BILLS 11 5.6900% 9/21/95 AAA s 090895 0040 *CONFIRMATION ONLY* AS151204A ASSOC CORP OF NO AMERICA DISC NT 7 5.6800% 12/04/95 A1+ s 090895 0002-A TRADE SETTLE 9/07/95 9/07/95 9/08/95 9/08/95 9/08/95 9/08/95 ORIGINAL FACE PAR/SHARES/QTY 1.00 15,000,000.00 3,000,000.00 BROKER PRICE 100.0000000 FOB 99 .7945277 DIR 98.6273333 *CONFIRMATION ONLY* NOTE: PHYSICAL PIECES 1X3MM, FH150911A F H L MC DISC NT* 9/08/95 GSC 14 5.5800% 9/11/95 A1+ s 9/08/95 12,000,000.00 99.9535000 090895 0042 *CONFIRMATION ONLY* NOTE: CUSIP 313396LP6 FN151103A FNMA DISC NT* 9/08/95 MLP 12 5.5800% 11/03/95 A1+ s 9/08/95 12,000,000.00 99.1320000 090895 0041 *CONFIRMATION ONLY* NOTE: CUSIP 313588NU5 ON151208A ONTARIO HYDRO DISC NT 9/08/95 9 5.6600% 12/08/95 A1+ s 9/08/95 090895 0006-A *CONFIRMATION ONLY* UTR50911B US TREASURY REPO 9/08/95 15 5.7300% 9/11/95 AAA s 9/08/95 090895 0005-A *CONFIRMATION ONLY* NOTE: COLL. WC150918B US WEST COMMUNICATIONS DISC NT* 9/08/95 8 5.7000% 9/18/95 A1+ S 9/08/95 090895 0009-B DOM 3,000,000.00 98.5692776 SLH 12,000,000.00 100.0000000 912827H47 12.135MM GSC 3,000,000.00 99 .8416666 *CONFIRMATION ONLY* NOTE: CUSIP 91289GWJO 912794T38 US TREASURY BILLS 9/11/95 24 5.7000% 9/21/95 AAA S 9/11/95 091195 0001-A *CONFIRMATION ONLY* FOB 24,100,000.00 99.8416666 Pay Codes: 'S' indicates SETTLED, '*' indicates UNSETTLED FACTOR COMMISSIONS PRINCIPAL SEC FEE 1.00 5.69000000 14 , 969, 1 79 . 16 2,958,820.00 11,994,420.00 11,895,840.00 2,957,078.33 12,000,000.00 2,995,250.00 5.70000000 24,061,841.67 ...:.._. .I PAGE: 1 AS OF DATE: 9/30/95 BANK ACCT: OCSF0751112 GAIN/LOSS DELIVERY CURRENCY INTEREST B/S ISITC NET AMOUNT ND USO 1.00 FBE USD 14,969,179.16 ISITC ~, PHY I 2,958, 820'.--... ; ISITC FBE USO 11,994,420.00 ISITC FBE USO 11,895,840.00 ISITC PHY USD 2,957,078.33 ISITC FBE USD 12,000,000,,,---.... I : I -· -/ SDF USO 2,995,250.00 ISITC FBE USD 24,061,841.67 ISITC PROGRAM NAME: PI0022 RUN DATE: 10/04/95 T R A N S A C T I O N J O U R N A L 8/31/95 THRU 9/30/95 ACCOUNT NO: 603 County Sanitation Districts-Orange CO.(Liq-Op) CUSIP DESCRIPTION TRADE NO COUPON MATURITY ~yy TICKET # TRADE SETTLE RN360201A REPUBLIC NEW YORK CORP BKRS ACC 9/13/95 25 5.5700% 2/01/96 A1+ S 9/14/95 091395 0030 ORIGINAL FACE PAR/SHARES/QTY BROKER PRICE SLH 3,000,000.00 97.8338890 * U R G E N T * NOTE: PHYSICAL PIECES 3X1MM 242998NZ1 ** DO NOT USE -USE 25466P9J9 ** 9/15/95 28 9.0000% 8/01/96 A * 9/20/95 091595 0083 25466P9J9 DISCOVER CREDIT CORP MTN D8/1/91 37 9.0000% 8/01/96 A S 9/15/95 9/20/95 MSC 2,000,000.00 102.5200000 MSC 2,000,000.00 102.5200000 091595 0083 *REVISION OF DELIVERY TYPE* NOTE: PHYSICAL: 1 PIECE X 2MM * U R G E N T * 812387AT5 SEARS ROEBUCK DEB 9/15/95 27 8.5500% 8/01/96 A S 9/20/95 091595 0079 UTR50919A US TREASURY REPO 9/18/95 31 5.7500% 9/19/95 AAA S 9/18/95 091895 0018-A MSC 2,500,000.00 102.1620000 DAI 3,100,000.00 100.0000000 *CONFIRMATION ONLY* NOTE: COLL: 912827M66 3.225MM KF151023A KFW INTERNATIONAL FIN. DISC NT* 9/19/95 34 5.7000% 10/23/95 A1+ S 9/19/95 091995 0010 SLH 1,000,000.00 99.4616670 *CONFIRMATION ONLY* NOTE: CUSIP: 48246KXP8 UTR50920A US TREASURY REPO 9/19/95 35 5.6500% 9/20/95 AAA S 9/19/95 091995 0009 DAI 2,000,000.00 100.0000000 *CONFIRMATION ONLY* NOTE: COLL: 912827L26 2.040MM FH151215A F H L MC DISC NT* 9/21/95 43 5.4700% 12/15/95 A1+ S 9/21/95 092195 0019 GSC 6,500,000.00 98.7084722 *CONFIRMATION ONLY* NOTE: CUSIP: 313396QN6 FL151023A FEDERAL HOME LOAN BANK DISC NT* 9/21/95 41 5.5700% 10/23/95 A1 S 9/21/95 092195 0001 FOB 12,000,000.00 99.5048888 *CONFIRMATION ONLY* NOTE: CUSIP: 313384NH8 Pay Codes: 'S' indicates SETTLED, '*' indicates UNSETTLED FACTOR COMMISSIONS PRINCIPAL SEC FEE 2,935,016.67 2,050,400.00 2,050,400.00 2,554,050.00 3,100,000.00 994,616.67 2,000,000.00 6,416,050.70 11,940,586.67 PAGE: 2 AS OF DATE: 9/30/95 BANK ACCT: OCSF0751112 GAIN/LOSS DELIVERY CURRENCY INTEREST B/S ISITC NET AMOUNT 84,500.00 84,500.00 PHY USD 2,935,016.67 ISITC SDF USO 2,134,900.JV' 1( PHY UStr 2,134,900.00 ISITC DTC USO 29,093.75 2,583,143.75 IS ITC FBE USO SDF 3,100,000.00 USD 994,616.67 ISITC FBE I', 2,000,000, FBE USD 6,416,050.70 ISITC FBE USO 11,940,586.67 ISITC PROGRAM NAME: Pl0022 RUN DATE: 10/04/95 ACCOUNT NO: 603 CUSIP DESCRIPTION TRADE NO COUPON MATURITY TICKET # TRADE SETTLE T R A N S A C T I O N J O U R N A L 8/31/95 THRU 9/30/95 County Sanitation Districts-Orange CO.(Liq-Op) ORIGINAL FACE PAR/SHARES/QTY BROKER PRICE FACTOR COMMISSIONS PRINCIPAL SEC FEE PAGE: 3 AS OF DATE: 9/30/95 BANK ACCT: OCSF0751112 GAIN/LOSS DELIVERY CURRENCY INTEREST B/S ISITC NET AMOUNT ·---------------------------------------------------------------------------~------------------------~~l GP951013C GEN ELEC CAPITAL CORP DISC NT* 9/21/95 42 5.7100% 10/13/95 A1+ S 9/21/95 092195 0010 SLH 3,000,000.00 99.6510555 *CONFIRMATION ONLY* NOTE : CUSIP: 36959JXDO UTR50922A US TREASURY REPO 9/21/95 2,989,531.67 44 5.6000% 9/22/95 AAA S 9/21/95 MLP 12,000,000.00 100.0000000 092195 0024 -C *CONFIRMATION ONLY* NOTE: COLLATERAL:. CUSIP 912827S94 12,000,000.00 FACE 12,000,000 UTR50925A US TREASURY REPO 9/22/95 51 5.5700% 9/25/95 AAA S 9/22/95 092295 0002-B FCH 12,000,000.00 100.0000000 *CONFIRMATION ONLY* NOTE: COLL: 912827U91 12.165MM AT151103D AMERICAN TELEPHONE & TEL DIS NT* 9/25/95 54 5.7200% 11/03/95 A1+ S 9/25/95 092595 0001 MLP 3,000,000.00 99.3803333 *CONFIRMATION ONLY* NOTE: CUSIP 03018BY37 UTR50926A US TREASURY REPO 9/25/95 55 5.6500% 9/26/95 AAA S 9/25/95 092595 0006 DAI 9,000,000.00 100.0000000 *CONFIRMATION ONLY* NOTE: COLLAT: 8.895MM CUSIP 912827T51 UTR50927A US TREASURY REPO 9/26/95 58 5.5500% 9/27/95 AAA S 9/26/95 092695 0004 FCH 9,000,000.00 100.0000000 *CONFIRMATION ONLY* FH151020B F H L MC DISC NT* NOTE: COLLAT: 8.84MM CUSIP 912827C83 GSC 99.6396666 61 5.6400% 10/20/95 A1+ S 9/27/95 9/27/95 6,000,000.00 092795 0003 *CONFIRMATION ONLY* NOTE: CUSIP 313396NE9 UTR50928C US TREASURY REPO 9/27/95 62 5.7700% 9/28/95 AAA S 9/27/95 092795 0007 DAI 3,200,000.00 100.0000000 *CONFIRMATION ONLY* NOTE: COLLAT: 912827B92 3.015MM UTR50929C US TREASURY REPO 9/28/95 65 5.8800% 9/29/95 AAA S 9/28/95 092895 0001-B DAI 3,200,000.00 100.0000000 *CONFIRMATION ONLY* NOTE: COLLATERAL: 912794X82 3.365MM Pay Codes: 'S' indicates SETTLED, '*' indicates UNSETTLED 12,000,000.00 2,981,410.00 9,000,000.00 9,000,000.00 5,978,380.00 3,200,000.00 3,200,000.00 SDF USO 2,989,531.67 ISITC FBE USD 12,000,000.00 \ FBE U~_ 12,000,000.00 SDF USD 2,981,410.00 ISITC FBE USO 9,000,000.00 FBE USD 9,000,000.00 FBE Uf,...__ 5,978,380( 1~..___ FBE USD 3,200,000.00 FBE USO 3,200,000.00 PROGRAM NAME: PI0022 RUN DATE: 10/04/95 T R A N S A C T I O N J O U R N A L 8/31/95 THRU 9/30/95 ACCOUNT NO: 603 County Sanitation Districts-Orange CO.(Liq-Op) CUSIP DESCRIPTION TRADE NO COUPON MATURITY ~}'. TICKET # TRADE SETTLE UTR51002A US TREASURY REPO 9/29/95 68 6.2000% 10/02/95 AAA S 9/29/95 092995 0007-A ORIGINAL FACE PAR/SHARES/QTY BROKER PRICE DAI 3,200,000.00 100.0000000 *CONFIRMATION ONLY* NOTE: COLLATERAL: 912827L67 3.315MM 9850906A2 BOSTON RESERVE DEPOSIT ACCOUNT 9/30/95 72 3.9900% 12/31/24 A1 S 9/30/95 242998NZ1 ** DO NOT USE -USE 25466P9J9 ** 9/15/95 36 9.0000% 8/01/96 CANCELLED * 9/20/95 091595 0083 Sell 912794T38 US TREASURY BILLS 9/14/95 26 5.6900% 9/21/95 AAA S 9/14/95 091495 0002 *CONFIRMATION ONLY* DELIVER TO: ABA# 0210-0001-8 Bk of NYC/DAIWA 128,416.80 100.0000000 MSC 2,000,000.00-102.5200000 ******TOTALS****** DAI 3,000,000.00 99.8893610 ******TOTALS****** Pay Codes: 'S' indicates SETTLED, '*' indicates UNSETTLED FACTOR COMMISSIONS PRINCIPAL SEC FEE 3,200,000.00 128,416.80 2,050,400.00- 179,500,889.34 5.69000000 2,996,680.83 2,996,680.83 PAGE: 4 AS OF DATE: 9/30/95 BANK ACCT: OCSF0751112 GAIN/LOSS DELIVERY CURRENCY INTEREST B/S ISITC NET AMOUNT 84,500.00- FBE USD ND SDF 3,200,000.00 USD 128,416.r 2,134,900~ ISITC --·-··------ 179,614,483.09 1,973.35 FBE USD 1,973.35 2,996,680.83 ISITC 2,996,680.83 .l:2!!!!!! 0 Written Report •overheads 0 Slldes 0 Fllp Charts Originator~' Department Head Sign Off , Anticipated Time :.S-"'-, '1 FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR OCTOBER 11, 1995 FAHR95-42: Consideration of motion to approve staff recommendations re microcomputer acquisition issues (Specification No. E-261) Summary At the July 6, 1995 meeting of the Planning, Design and Construction Committee, item PDC95-24 "Discussion of Plant Automation Computer System and Consideration of Motion Authorizing Staff to Issue Purchase Order with Pioneer-Standard Electronics for Two VAX 4000 Model 705A Computers for Plant 2 Plant Automation", was presented to the Committee. This proposal included the purchase of 32 DEC Pentium Personal Computers for Operations at both plants. The Committee authorized staff to proceed with the purchase of the Two VAX 4000 Computers for Plant 2 automation, but the purchase of the Personal Computers was deferred pending a staff evaluation to identify more cost effective options. Staff has researched a number of related issues that go beyond those addressed at the Planning, Design and Construction Committee for Plant Automation's specific request. Due to the broader issues, it was felt that the Finance, Administration and Human Resource Committee was the appropriate body to present this report. This report reviews options which have been studied by staff and recommends a plan of action for present and future microcomputer purchases, together with a request for authorization to purchase more than the original 32 Personal Computers (current request now total 60). The 32 systems which were requested in July had an average cost of $5,467. The proposed acquisition being presented in this report has decreased the average price by a range of $1780 to $2220, depending on the configuration. J;\WPOOC\FINICRANEIFPC.MTGIFAHR.95VTEMIFAHR95.42 ,, I' Staff Recommendation Information Technology recommends the following administrative policy: Budgeting for PC assets shall limit "bump down" shifting of assets to no more than two levels. This means that a new computer may release the previous PC to be shifted to another user. That second user's old computer can then be relocated once. However, if another PC is then "bumped" from the third user, that PC is deemed to be surplus and will not be reinstalled elsewhere. User 1 User 2 User 3 New PC ----> Old PC-----> Old PC ------>Surplus PC Information Technology proposes the following four actions for the Committee: 1 . It is proposed that the Committee recommend to the Joint Board that the Districts' policy with regards to standards for PC technology shall be that all PC technology purchases be limited to the most recent list of tier 1 and tier 2 vendors as defined by GartnerGroup, for both desktop computers and mobile computers. 2. It is proposed that the Committee recommend to the Joint Boards that the Districts policy state that, with regards to the purchase of PC technology all purchasing actions utilize California Multiple Award Schedule (CMAS) contracts for the purchase of PC technology from among the list of tier 1 and tier 2 vendors as mentioned in the previous motion. Staff will compare CMAS pricing and choose the lowest priced Tier 1 and Tier 2 vendor's configuration applicable to the Districts' needs. 3. Consideration of motion authorizing staff to issue a purchase order to Dell Computer, the lowest priced Gartne.r Tier 1 /2 vendor at this time, in a total amount not to exceed $208,900.00, including sales tax, for the Purchase of 60 Personal Computers and monitors and other associated components (Specification No. E-261 ). 4. It is proposed that the Committee direct staff to issue an RFP for Hardware Maintenance Services and an RFP for Software Help Desk Services. Staff will evaluate proposals, rank and present their recommendations to the Committee for award of a Purchase Order for such services. J:\WPOOCIFIN\CRANE\FPC.MTGIFAHR.95\ITEMIFAHR95.42 October 2, 1995 STAFF REPORT FAHR95-42: Microcomputer Acquisition Issues SUMMARY At the July 6, 1995 meeting of the Planning, Design and Construction Committee, item PDC95-24 was presented to the Committee. This item was titled "Discussion of Plant Automation Computer System and Consideration of Motion Authorizing Staff to Issue Purchase Order with Pioneer-Standard Electronics for Two VAX 4000 Model 705A Computers for Plant 2 Plant Automation." In addition, this proposal included the purchase of 32 DEC Pentium Personal Computers for Operations at both plants. The Committee authorized staff to proceed with the purchase of the Two VAX 4000 Computers for Plant 2 automation. The purchase of the 32 Pentium Personal Computers was deferred pending a staff evaluation to identify more cost effective options. Staff has researched a number of related issues and prepared a detailed response for the Committee in a concentrated effort to obtain the best value for the Districts' Information Technology investment. The issues go beyond those addressed at the Planning, Design and Construction Committee for Plant Automation's specific request. In the months which have followed, many other requests for Personal Computers have come forward from other divisions and departments. Due to the broader issues, it was felt that the Finance, Administration and Human Resource Committee was the appropriate body to present this report. This report reviews options which have been studied by staff and recommends a plan of action for present and future microcomputer purchases, together with a request for authorization to purchase more Personal Computers. The 32 systems which were requested in July had an average cost of $5,467. The proposed acquisition being presented in this report has the average price for the same configuration lowered by $1,780 to $3,687 each. The average cost of the remaining 28 systems are $3,247 each. (The original 32 systems are for Plant Automation and have a special configuration and require larger 17-inch monitors, all of which increases the cost.) CSDOC O P.O. Box 8127 D Fountain Valley, CA 92728-8127 D Tel. (714) 962-2411 0 FAX (714) 962-3954 FAHR95-42 Page 2 of 11 October 2, 1995 COSTS OF COMPUTER TECHNOLOGY 1. Software Drives Hardware Needs: Many trends have developed since the creation of the Microcomputer (otherwise known as Personal Computer or PC). Over time, the power of the PC has increased while the price has decreased. These trends have received greater attention by the general public than other less-noticeable trends. The most important of these other trends is that software increasingly drives the need for hardware. The example given below is only typical of many situations which support this point. 2. Example: The most recent evidence that software drives hardware is the new release of Windows 95. The popular price is only $89.95 for the software but several hundreds of dollars of hardware upgrades are necessary in most instances to enable Windows 95 to function acceptably. The alternative might seem to be to avoid buying Windows 95 and keep the older version, Windows 3.1; however, within the next 30 days, Microsoft Corporation, the publisher of all Windows software, will remove Windows 3.1 from the market, giving the public no choice. If a business needs to buy one or more new computers to plug into a network, the network manager is faced with the dilemma of having a mixed network --some users with Windows 3.1 and some with Windows 95. This drives up the cost of maintaining the network as a whole. Capit al Cost is Only a Fract ion of True Cost : The most accurate measure of the cost of PC technology extends far beyond the purchase price of the hardware. In 1987, the GartnerGroup Personal Computing service conducted its first analysis of PC ownership for corporate computing environments .1 The capital cost of a typical desktop computer is only 12 % of the true cost of ownership (TCO). Administration accounts for 14%, Support 57% and 1The GartnerGroup is the world's leading independent advisor to business and government professionals making information technology (IT) decisions. The Districts contract with the GartnerGroup to provide advisory services and consulting in three defined areas of expertise: Network Computing Infrastructures (NCI), Personal Computing (PC), and Office Information Systems (0IS). FAHR95-42 Page 3 of 11 October 2, 1995 End User Operations 17%. Since that first report, the five-year total cost of ownership (TCO) of a DOS-based PC has ballooned from $19,296 to $41,536 --an increase of 153 percent. 2 Understanding total cost of ownership is crucial for several reasons. In a recent GartnerGroup Personal Computing Strategic Analysis Report3, stated: .,Even though the capital costs for hardware represent a small percentage of the TCO, consistent and carefully crafted hardware procurement strategies are critical. Enterprises should always attempt to get the best deal on hardware, but they should not make it their singular focus. Blindly focusing on price by buying the lowest-cost PC can foster heterogeneity, which increases support and administrative costs. It may also force an enterprise to buy from risky vendors. PC hardware is not a commodity nor are the vendors." It was also apparent from the GartnerGroup study that the Districts' current staffing cannot meet its current needs, much less for the balance of FY 95-96. It was with this idea in mind that Information Technology plans to outsource part or all of two major service functions: Computer Hardware Service and Software Help Desk Services. 3. The Need for Standardiiation: The GartnerGroup recognized many years ago that one of the keys to lowering operating costs for PC assets is through minimizing financial and technological risk. This could be accomplished by focusing PC hardware acquisitions on a tiering structure created as a result of extensive industry research. Many benchmarks were used for evaluating PC vendors but all generally fall into two categories: Financial Performance and Product Reliability. GartnerGroup's recommendations are to limit the purchase of PC assets to tier 1 and tier 2 vendors only. 2Desktop Computing: Management Strategies to Control The Rapidly Escalating Cost of Ownership; The GartnerGroup, Personal Computing Strategic Analysis Report, January 5, 1995; PC: R-PCTOC; W. Kirwin, E. Younker. 3Keys to Procuring and Managing PC Hardware Assets; The GartnerGroup, Personal Computing Strategic Analysis Report, September 12, 1995; PC:R-100-113; C. Goodhue, et al.; pg.4-5 FAHR95-42 Page 4 of 11 October 2, 1995 "'The marketplace has historically recognized IBM, Compaq Computer Corp. and Apple Computer Inc. as indisputable Tier 1 vendors due to rock solid reliability and market clout. For users, however, recognizing the factors that separate risky Tier 3 vendors (which include a variety of small and/or financially troubled companies that should be avoided) from our recommended Tier 2 vendors (those demonstrating financial stability and high levels of quality assurance), has presented more of a challege. Our desktop vendor evaluation methodology is designed to help organizations identify those providers that offer the best investment protection and least amount of risk. "4 GartnerGroup's tiering structure is a living document, constantly changing with the changes in the market place. GartnerGroup maintains two separate lists --one for desktop computer vendors and the second for mobile computer vendors (laptops, portables, etc.) These vendors are as follows:5 DESKTOP COMPUTER VENDORS Consolidated Tier 1 / Tier 2 Acer Apple AST AT&T Bull/ Zenith Compaq Digital Dell HP IBM ICL (Europe only) NEC Olivetti (Europe only) Siemens Nixdorf (Europe only) MOBILE COMPUTER VENDORS Apple Compaq IBM Toshiba Tier 1 Tier 2 AST Bull / Zenith Dell Digital HP AT&T NEC Olivetti (Europe only) 4GartnerGroup PC Research Note, March 7, 1994: Strategic Palnning, SPA- 820-1036, C. Goodhue. 5GartnerGroup Personal Computing Strategic Analysis Report; Keys to Procuring and Managing PC Hardware Assets; PC-R-100-113; pg 8. C. Goodhue, et. al. FAHR95-42 Page 5 of 11 October 2, 1995 GartnerGroup's recommendations for standardization were echoed by the recent study of the Districts' Finance Department, performed by Ernst & Young at the request of the Joint Boards. This study included a review of the Information Services function, which was a part of the Finance Department at that time. In the final report, one of the recommendations called for standardization for the same reasons as those stated by GartnerGroup. "These standards would limit the versions and levels of hardware and software that would be purchased and supported by the MIS."6 4. Obsolescence of PC assets: Government accounting standards call for a standard 5-year depreciation for PC assets; however, actual practice has shown that the effective life of a PC averages from 18 to 36 months. The machine continues to function as a machine long after it has reached functional obsolescence due to the rapidly increasing demands of software technology. Districts' staff has sought to extend the life of its PC assets through a rigorous program of installing more memory modules, new processor boards, network cards, and other components --all in an effort to .,make do" with existing assets and avoid relegating still-functioning machines to a high tech equivalent of a ~bone yard", This would then be followed by the purchase of a newer, faster PC. Another method is the .,bump-down" effect. This means that when a new computer is needed, it is allocated to the user having the highest need. In turn, that user's old PC is moved to the next lower ranking user in the division, and so on. Although it maximizes PC assets, a single PC purchase means the shifting of as many as 6 PC units and occupies a full-time staff for nearly a week. These efforts have not been cost-effective and require large stockpiles of spare parts, space for service work, and increased staffing. Although a more detailed analysis is still pending, a comparison of the Districts' past methods of extending the effective life of PC assets appears to increase our service and operating costs of PC ownership far beyond the norm, negating any savings originally sought. This practice was also highly discouraged by Ernst & Young in their Finance Function Study.7 6Finance Function Review Final Report; Ernst & Young LLP; July 1995, Information Systems, pg. 7. 7Finance Function Review Final Report; Ernst & Young LLP; July 1995, Information Systems, pg. 4. FAHR95-42 Page 6 of 11 October 2, 1995 5. Threshold of Change: A New Network Another recommendation made in the Ernst & Young report of the Finance Department was for Information Services (now Information Technology) to implement a more robust network to meet the needs of critical new applications which are rapidly approaching, such as the Financial Information System. 8 Information Technology (IT) is in the design phase of a new network topology, replacing the old ArcNet cabling scheme and Novell Netware file servers with a new single-domain Windows NT Server network running on Ethernet. This will provide four readily identifiable needs; a single logon for users, greater network security, the ability to implement E-mail, and the ability to install a communications server to facilitate greater ease in accessing Internet and other external data resources. All desktop PC units will be connected to the Windows NT Server; however, this major upgrade still cannot avoid the issue that the Districts has a number of PC units which are not robust enough to connect to this new network and must be replaced. 6. Staffing Required to Support Systems One of the items addressed in all discussions of the true cost of Personal Computing technology is the staff required to support such systems. Two types of personnel are required: hardware support and software support. When Personal Computers are connected together in networks such as we have here at the Districts, fewer staff are required for software support than would be required if all of the systems were not networked. This is partially offset by the fact that type of software support staff utilized must possess networking expertise, which may require obtaining higher-paid professionals. Hardware support staff required is slightly more for networked environments because of the need to support the networking hardware infrastructure. The study conducted by Ernst & Young mentioned that the Information Technology staff was stretched too thin. Gartner Group analysis recommends one FTE hardware support staff person per every 75 to 100 Personal Computers. The Districts now employees 3 FTEs for 375 computers. More systems need to be purchased before the end of FY 95-96. Information Technology would require at least two additional FTE for hardware support and one more FTE for software support. In an effort to save the Districts money, Information Technology budgeted for a hardware maintenance contract and a contract for software help desk services 8Finance Function Review Final Report; Ernst & Young LLP; July 1995; Information Systems, pg. 8. FAHR95-42 Page 7 of 11 October 2, 1995 for FY 95-96 instead of requesting the three additional FTE staff. In this manner, Information Services will partially out-source these activities and free the existing staff to perform preventative maintenance and work on other activities which staff has not had enough time to work on. OPTIONS STUDIED Item number six above dealt with staffing required to support the Districts PC assets. Information Services staff has contacted several service vendors to obtain preliminary information on levels of service, service quality, separation of duties and responsibilities as well as cost estimates. The budget for computer hardware services for FY 95-96 was $90,000 and software help desk services was $60,000. Following more detailed study, staff estimates of computer hardware services will cost $84,000 and software help desk services will cost $56,000, all for FY 95-96. In light of the issues reviewed in items 1-5 above, the Districts needs greater flexibility in addressing the issues of acquiring PC assets. Four options were reviewed: 1. The previous method was revisited. This method involved batching the Purchase Requests of the various departments and divisions and making general purchases 2 or 3 times per year. The rationale of this method was that the aggregate of the requests would usually be large enough to involve public bids and Board authorization to issue a Purchase Order to the lowest responsible bidder. Many problems were experienced with this method: a. The need for PC units could not always be relegated to such a rigid time table. b. Staff effort to prepare combined specifications, prepare for bids and evaluate the bids was burdensome. c. Early experience in not pre-qualifying PC make and models resulted in numerous problems. Later efforts to pre-qualify met with only limited success. Typical low-bid were in what GartnerGroup now calls tier 3. One major manufacturer went out of business, leaving us with a number of uorphaned" PC units which could not be upgraded. FAHR95-42 Page 8 of 11 October 2, 1995 d. Cost savings were difficult to realize as third-party vendors would inflate their mark-up to limit their exposure to a highly volatile market place. Due to the lengthy time span from specification, to bid, to certification, to award, to delivery --some items would no longer be available or prices would change substantially. 2. Staff investigated the methods used by the County of Orange. The County of Orange used to issue a master contract with a third-party vendor to buy computer hardware and software on an as-needed basis. This contract would run 3 years (in part made necessary due to the length of time needed for negotiation and evaluation prior to contract award or renewal.) The contract would specify exact models and prices. This method had a number of failings. First and foremost, it locked in the County to prices which invariably dropped during the contract period. Most vendors would not be willing to negotiate for a fixed discount due to the volatility of the market. The only saving grace is the volume which the County could bring to a fixed discount contract. Since the bankruptcy, the County no longer has a master contract but has used a variety of methods, sharing two contracts with Los Angeles County and one with Merced County. They have also tried using California Multiple Award Schedule (see item 4 below). However, due to a lack of County-wide standards, various departments and agencies have made conflicting demands which have finally led County GSA to simply solicit the 3 lowest prices from a list of PC third party vendors and issue the Purchase Order to the lowest. 3. Two types of leasing plans were investigated by IT Department staff. The first involved a "Operating Lease" which would provide PC units, hardware support, software support, help desk services, installation, training and asset management --all for a fixed price. The Districts would cease to own PC assets. All PC assets would be established on a 36-month rotation. At the end of 36 months, the old machine would be returned and replaced by the latest technology --with no residual payment. The second leasing plan was almost identical to the first but the parties would separate the contracts so that the PC asset lease was a separate instrument from the Hardware Support and the Help Desk Services. No asset management or training was included. t FAHR95-42 Page 9 of 11 October 2, 1995 Both of these plans were attractive to staff because of the burden that would be shifted to the vendor. However, in the absence of any tax advantages (which are not applicable to the Districts), the cost of leasing PC assets is not cost effective. 4. In January 1995, a new type of cooperative agreement came to the attention of the IT Department staff. This was the California Multiple Award Schedule, or CMAS. Our initial interest was focused on a CMAS agreement between the State of California and Digital Equipment Corporation. Shortly after this, many other vendors signed similar CMAS agreements with the state, making this a popular method of acquiring discounts which the Districts could not otherwise negotiate. This method shows the most promise to provide a cost-effective way to eliminate the delays which have hampered the timely acquisition of Personal Computers for Districts staff. All purchases over $50,000 will be brought to the Committee and, subsequently, the Joint Boards, for approval. CURRENT SITUATION The 1995-96 budget approved by the Joint Boards in June of 1995 provided funding for the purchase of 171 Personal Computers. In July, the 32 Pentium Personal Computers, which the Committee placed on hold pending more study, were valued at $174,942.72. The total number of Personal Computers requested for immediate purchase now totals 60. This includes the original 32 for Plant Automation. Information Technology staff has studied the Gartner Group Tier 1 /2 list of vendors and determined that of the 14 vendors listed: 3 have European sales only 1 has systems not compatible with existing Districts systems 1 (AT&T) has announced a halt to PC production 1 has had difficulty providing quality service locally 1 is not marketing locally 1 has no CMAS agreement in force FAHR95-42 Page 10 of 11 October 2, 1995 This leaves 6 recommended vendors who have CMAS contracts: Acer, Compaq, IBM, Digital, Dell and HP. Using a standard configuration, Information Technology staff obtained CMAS quotes from each of the six vendors to determine the lowest priced system for purchase through the CMAS contract. The 32 systems which were requested in July had an average cost of $5,467. Following the CMAS pricing of the lowest of the six Gartner-recommended Tier 1 /2 vendors, the average price for the same configuration decreased by $1, 780 to $3,687 each. The average cost of the remaining 28 systems are $3,247 each. (The original 32 systems are for Plant Automation and have a special configuration and require larger 17-inch monitors, all of which increases the cost.) RECOMMENDATIONS Information Technology recommends the following administrative policy: Budgeting for PC assets shall limit .,bump down" shifting of assets to no more than two levels. This means that a new computer may release the previous PC to be shifted to another user. That second user's old computer can then be relocated once. However, if another PC is then .,bumped" from the third user, that PC is deemed to be surplus and will not be reinstalled elsewhere. User 1 User 2 User 3 New PC ----> Old PC-----> Old PC ------>Surplus PC Information Technology proposes the following four actions for the Committee: 1 . It is proposed that the Committee recommend to the Joint Board that the Districts' policy with regards to standards for PC technology shall be that all PC technology purchases be limited to the most recent list of tier 1 and tier 2 vendors as defined by GartnerGroup, for both desktop computers and mobile computers. 2. It is proposed that the Committee recommend to the Joint Boards that the Districts policy state that, with regards to the purchase of PC technology all purchasing actions utilize California Multiple Award Schedule (CMAS) contracts for the purchase of PC technology from among the list of tier 1 and tier 2 vendors as mentioned in the previous motion. FAHR95-42 Page 11 of 11 October 2, 1995 Staff will compare CMAS pricing and choose the lowest priced Tier 1 and Tier 2 vendor's configuration applicable to the Districts' needs. 3. Consideration of motion authorizing staff to issue a purchase order to Dell Computer, the lowest priced Gartner Tier 1/2 vendor at this time, in a total amount not to exceed $208,900.00, including sales tax, for the Purchase of 60 Personal Computers and monitors and other associated components (Specification No. E-261 ). 4. It is proposed that the Committee direct staff to issue an RFP for Hardware Maintenance Services and an RFP for Software Help Desk Services. Staff will evaluate proposals, rank and present their recommendations to the Committee for award of a Purchase Order for such services. SH:fw J:\WPDOC\FIN\CRANE\FPC.MTG\FAHR.95\STAFF.RPT\SRFAHR95.42 Format D Written Report D Overheads D Slides D Flip Charts Originator _a.£1.._ Department Head Sign Off~ Anticipated rune S-: ~ FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR95-43: Summary AGENDA FOR OCTOBER 11, 1995 Consideration of motion to approve staff recommendation for the establishment of a Relief Operator bonus of $.60 per hour for employees covered by the Operations and Maintenance Memorandum of Understanding through a Side Letter of Agreement The annual overtime cost to operate both treatment plants is currently about $375,000. Forty-eight percent (48%) of this total, or $180,000, is attributable to holiday coverage and is currently controlled by operating at minimum staffing levels on holidays. The remaining fifty-two percent (52%), or $195,000, is caused by employees working overtime to cover for the scheduled or unscheduled absences of other employees in an effort to meet minimum staffing requirements. Overtime costs could be further reduced through use of a relief, or floater, position that could be assigned to any vacant shift on a regular basis. A Relief Operator bonus offers an inducement to work this otherwise undesirable and unpredictable shift, which may vary from mornings one week to nights the following week. Eight such positions at both plants have the potential of reducing overtime costs by up to $100,000 annually. Staff Recommendation Establish a Relief Operator bonus of $0.60 per hour for employees covered by the Operations and Maintenance Memorandum of Understanding through a Side Letter of Agreement. J:IWPDOC\FINICRANEIFPC.MTGIFAHR.9511TEMIFAHR95.43 October 11 , 1995 STAFF REPORT FAHR95-43: Operations Overtime Cost Reduction Strategy Background Overtime costs attributable to Plant Operations personnel are primarily caused by holiday coverage and both scheduled and unscheduled time off. While overtime expenditures have been reduced recently to a great extent through management of staffing levels on the various shifts, opportunities for further reduction have been identified. The annual overtime cost to operate both treatment plants is currently about $375,000, which is approximately half of what is has been in previous years. Forty-eight percent (48%) of this total, or $180,000, is attributable to holiday coverage and is currently controlled by operating at minimum staffing levels on holidays. The remaining fifty-two percent (52%), or $195,000, is caused by employees working overtime to cover for the scheduled or unscheduled absences of other employees in an effort to meet minimum staffing requirements. Staff has reached an agreement with the Operations and Maintenance bargaining group Work Issues Committee to the effect that requests for time off will only be approved if the minimum staffing level has not been reached for the shift in question. Exceptions may be made in the event of unforeseen circumstances. This strategy is largely responsible for the reduction in overtime costs from previous levels to the current $375,000. A further reduction could be realized through use of a relief, or floater, position that could be assigned to any vacant shift on a regular basis. Eight such positions at both plants have the potential of reducing overtime costs by up to $100,000 annually. A Relief Operator bonus offers an inducement to work an otherwise undesirable and unpredictable shift, which may vary from mornings one week to nights the following week. The City of Los Angeles utilizes a Relief Operator bonus of $0.60 per hour. While the Relief Operator concept is not widely used, and therefore survey data is not helpful, a figure of $0.60 per hour, or about 3 percent, would seem reasonable in light of the potential savings. The annual cost of offering this bonus to eight employees is $10,000, balanced against the potential savings of $100,000. CSDOC O P.O. Box 8127 0 Fountain Valley, CA 92728-8127 0 Tel. (714) 962-2411 D FAX (714) 962-3954 FAHR95-43 Page2 October 11, 1995 Cost Implication Summary Current Total Operations Overtime Cost Amount Attributable to Holidays (fixed) Amount Attributable to employee absence Cost to Implement Floater Concept Potential Reduction in Overtime Costs Projected Total Overtime with Floater Net Potential Savings Staff Recommendation $ 375,000 180,000 195,000 10,000 (100,000) 285,000 $ 90.000 Establish a Relief Operator bonus of $0.60 per hour for employees covered by the Operations and Maintenance Memoranda of Understanding through a Side Letter of Agreement. GH:lc J:IWPOOC\FIN\CRANE\FPC.MTGIFAHR.95\STAFF.RP1\SRFAHR95.43 (13) Upcoming Meetings .E2!!!!!! 0 Wrtttan Report Oovertouds 0Sllda 0 Flip Charts Or1glnato;.~ Department Head Sign ~ Anticipated Time __ _ FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR OCTOBER 13, 1995 (13) Consideration of upcoming meetings and items to be discussed at those meeting. Summary 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, November 8, 1995, preceding the Executive Committee Meeting. 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 NOVEMBER 1994-95 Comprehensive Annual Financial Report 1994-95 Management Letter from Independent Financial Auditors Revised Employee Handbook Benchmarking Efforts Status Report Quarterly JO and CORF Budget Reviews Selection of F.I.S. Consultant for Phases Ill and IV Hardware Maintenance Contract for Personal Computers Help Desk Services Contract for Personal Computers Purchase Hardware for Windows NT Computer Network Consideration of Revised Receivables Collection Policy 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 Review Commercial Bank Selection Review Responses to F.I.S. RFP Process Industrial Hygiene Consultant Selection Proposed Agenda Process Improvements Quarterly Training Program Update Quarterly Communication Program Update Quarterly EY Recommendations Status Report Staff Recommendation Information only item. J:IWPOOC\FINICRANEIFPC.MTGIFAHR.95\ITEMICALEN10.95 _) Minutes of the Executive Co~nmittee Page 5 of 7 September 20, 1995 PDC95-28: OMTS95-039: (2) Consideration of Resolution No. 95-__ Accepting said contract as complete, authorizing execution of the Notice of Completion and Approving the Final Closeout Agreement. Consideration of motion approving actions re Specific Term Employment Agreement with Joseph T. Horvath. Consideration of Resolution No. 95-__ , approving Plans and Specifications for Construction of Improvements to Ocean Outfall Booster Station Control System, Job No. J-31-2, and recommending that the General Manager be Authorized to establish the date of receipt of bids (Tentative bid date is October 24, 1995). (a) A motion was made, seconded and passed to receive and file draft Finance, Administration and Human Resources Committee Minutes for the meeting held on September 13, 1995. (b) A motion was made, seconded and passed to concur in the recommended actions of the Finance, Administration and Human Resources Committee held on September 13, 1995, as follows: Item 6: Recommend approval 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 agreement plus 100 basis points. FAHR95-36: Recommend approval of extension of Real Property Lease, Plant No. 1, Lease No. L-009-1, with Lessee, First Bank of California, for a term of three years at the greater of $60,000 per year or 10% of gross. (16) Discussion of the following information items: (a) Status report on CSD--IRWD Capacity Agreement. Staff has been working with IRWD staff to change the Agreement for Purchase and Sale of Capacity Rights in Treatment, Disposal and Sewer Facilities between County Sanitation District No. 14 and the other County Sanitation Districts of Orange County. The IRWD funds all of the District 14 financial requirements. The original agreement was signed in 1986, and many of the assumptions made at that time have changed dramatically and are no longer valid, resulting in inequities and differences. The time has now come to adjust the agreement based on actual flow. The resulting agreement provides that District 14's annual flow will be calculated by multiplying the actual flow for the four highest months by three to determine a twelve-month flow, beginning with 1995-96; that proceeds from the incremental sale of District 14's share of joint works capital facilities will remain in the District 14 treasury and will be used Minutes of the Executive ( ;ommittee Page 6 of 7 September 20, 1995 first to satisfy reserve policy requirements, with any excess used to fund future construction needs; and finally, interest earnings on reserve funds will be allocated to District 14. Staff will continue with their efforts to finalize the agreement, and attempt to verify any other issues that could impact the consolidation effort. Director Saltarelli suggested that the Districts consider buying out IRWD and paying off the bondholders. The issue of a potential conflict of interest by Director Swan was discussed, and it was suggested that this be considered when the Boards act on the agreement. (b) Orange County Bankruptcy Update ( 1) The Committee recommended receiving and filing the attached Staff Report dated September 25, 1995 on Resolution of Bankruptcy Claims. Blake Anderson presented an update on the bankruptcy as of the meeting this morning with the OCIP. The deal has been struck, but there are several things that still need to be considered, changed, reconciled and finalized. These are contained in the attached presentation package. (2) A motion was made, seconded and passed recommending endorsement of the cooperative agreement in concept, and to wait until the final agreement and disclosure information has been completed and reviewed by the Boards prior to making a final determination. (17) CLOSED SESSION There was no need for a Closed Session. (18) OTHER BUSINESS Judy Wilson noted that at the last FAHR Committee meeting it was reported that we had received $297 million from out investments that survived the bankruptcy losses and were still owed $400,000 in interest payments from the Pool. On Friday, that money was received by the Districts. Director Sapien asked for the current status of the Techite pipe case. Counsel indicated that the an appeal has been filed by United Technologies Corporation. He will be reporting on this issue in Closed Session next week and will recommend that a cross appeal be filed. Director Sapien asked that he be kept advised on this case. The General Manager again invited the Directors and their families to the Districts' Family Day September 23. This is the first time a Family Day has been held since 1973. We expect about 600, including 125 children.