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HomeMy WebLinkAbout1995-11-08FILED : 1 the Office of the Sec~et~; ,' .~:;ounzsanit~ion Distr!cn,y, .• o(s) .J . ';z->1 4,,2, II NOV 1 51995 DRAFT B· __/1,r..£.::..----MINUTES OF FINANCE, County Sanitation Districts of Orange County, California P.O. Box 8127 • 10844 Ellis Avenue Fountain Valley, CA 92728-8127 Telephone: (714) 962-2411 ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Wednesday, November 8, 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 November 8, 1995 at 5:30 p.m., at the Districts' Administrative Offices. (1) ROLL CALL The roll was called and a quorum declared present, as follows: Committee Directors Present: John C. Cox, Jr., Joint Chair George Brown, Chair Jan Debay James Flora Wally Lynn Thomas Saltarelli William G. Steiner Peer Swan Committee Directors Absent: Burnie Dunlap John M. Gullixson Roger R. Stanton, Vice Chair Other Directors Present: John Collins Don Griffin Pat McGuigan Staff Present: Donald F. McIntyre, General Manager Blake P. Anderson, Assistant General Manager Judith A. Wilson, Assistant General Manager Gary Hasenstab, Director of Human Resources Ed Hodges, Director of Maintenance Steve Hovey, Director of Information Technology Bob Ooten, Director of Operations David Ludwin, Director of Engineering Gary Streed, Director of Finance Nancy Wheatley, Director of Technical Services Michael D. White, Controller Stephen V. Kozak, Financial Manager Mike Peterman, Human Resources Supervisor Others Present: Thomas L. Woodruff, General Counsel Terry Andrus, General Counsel Dennis Vlasich, Keery Consulting Group Michael Moreland, Moreland & Associates Charles Acocella, Moreland & Associates Julie Pritchard, Moreland & Associates (2) APPOINTMENT OF A CHAIRMAN PRO TEM No appointment was necessary. Minutes of Finance, Ac' ·fl. and Human Resources Commit' ,l Page2 November 8, 1995 (3) PUBLIC COMMENTS No comments were made. (4) REPORTS OF THE COMMITTEE CHAIR. GENERAL MANAGER. ASSISTANT GENERAL MANAGER{Sl. DIRECTOR OF FINANCE/TREASURER. DIRECTOR OF HUMAN RESOURCES, DIRECTOR OF INFORMATION TECHNOLOGY AND GENERAL COUNSEL (a) Report of the Committee Chair Committee Chair George Brown announced there would be an Executive Committee meeting starting at 7:00 p.m., immediately after this meeting. (b) Report of the General Manager The General Manager, Donald F. McIntyre, reported that the staff recommendation for a consultant to assist with the new Financial Information System (FAHR95-38) had been distributed as advised in the agenda. He also reminded the Directors of the Plant No. 2 tour scheduled for Saturday, November 18. The General Manager and the Director of Technical Services will be meeting with Directors to prepare for "Red Team" meetings regarding excess capacity charges. (c) Report of Assistant General Manager -Operations Blake Anderson reported on the status of the staff and consultant work with the County of Orange regarding the potential purchase of landfills. A more detailed report was scheduled for the Executive Committee meeting later in the evening. A County Board of Supervisors meeting on the topic is scheduled for November 14, the day prior to our next Board meeting. Report of Assistant General Manager -Administration Judy Wilson introduced Mike Peterman whose employment as Personnel Supervisor started this month. (d) Report of the Director of Finance/Treasurer (1) Finance DirectorfTreasurer Gary Streed updated the Committee on the status of the Districts' COP program which he illustrated by showing a graph of the variable interest rate history on each of the daily rate COPs, and the effective fixed rate for the two refunding issues. The two refunding issues are covered by an interest rate exchange agreement commonly called a "swap." Mr. Streed noted • Minutes of Finance, Ad(} and Human Resources Committf) Page 3 November 8, 1995 that variable rates historically rise at the end of each quarter, because of business taxes and statements, and usually decline to prior levels immediately in the following month. Staff will continue to keep the Committee fully informed about developments in the program as they occur each month. (2) Mr. Streed noted that October is the first full month of external money management by Pacific Investment Management Company, "PIMCO," the Districts' Investment Manager, and Mellon Trust Company, Custodial Bank. A monthly report prepared by PIMCO and Mellon was handed out at the beginning of the meeting. The Committee reviewed the Monthly Report and the Portfolio Detail By Sector and Portfolio Summary By Sector reports. In conclusion, Mr. Streed advised that the total CSDOC cash and investments amount to $337,832,649 as of October 31, 1995. The Committee moved, seconded and duly carried a motion to receive, approve and forward this report to the Executive Committee and Joint Boards. ( e) Report of the Director of Human Resources Gary Hasenstab had no report. (f) Report of the Director of Information Technology The Director of Information Technology, Steve Hovey, reported that the 60 personal computer purchases authorized last month had been completed for a final cost approximately $11,000 less than that authorized. (g) Report of General Counsel General Counsel 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. Minutes of Finance, Ad ·)I. and Human Resources Commitf Page4 November 8, 1995 (6) Consideration of PDC95-36 -Consideration of motion to solicit proposals for Professional Planning. Design and Construction services for three proiects as follows: Proiect No. 1: Proiect No. 2: Project No. 3: Engineering Services for Investigation and Repair of Ocean Outfalls Management of Peak Hydraulic Discharge Determination of Financial Charges Dave Ludwin, Director of Engineering, and Tom Dawes of his staff gave a brief presentation detailing three separate, but related projects which staff is requesting authorization to solicit RFPs. Most of the proposed work is Master- Plan related, and the land use data necessary for the Management of Peak Hydraulic Discharge and Determination of Financial Charges is nearly identical. Several different Professional Services Agreements will be required to complete the projects. After discussion on this item, it was moved, seconded and duly carried to recommend the Executive Committee authorize staff to request proposals on the three projects as noted above. (7) OLD BUSINESS FAHR95-24 Consideration of motion extending early retirement incentive program provisions for all eligible employees: (a) Consideration of motion to recommend a Board Ordinance adopting the provisions of Government Code Section 31641.04 authorizing all eligible Districts' employees to receive two years additional service credit for retirement purposes. (b) Consideration that the Ordinance should specify that provisions of the Early Retirement Incentive Program would be effectiv~ January 1 through March 30, 1996, and that the total cost-savings of positions filled at a lower level or held vacant for a period of time shall exceed the total actuarial cost of the additional service credit granted and associated paid leave payoff costs. Minutes of Finance, Adr) and Human Resources Committer') Page 5 November 8, 1995 (c) Consideration that, for a period of five years, or until such time as the full actuarially determined cost is paid to OCERS, the Districts' Controller will conduct an annual post-audit to verify that the savings exceed the actuarial and associated costs attributable to the additional service credit, and report the findings of that audit to the Finance. Administration and Human Resources Committee. The first report will be presented during the fourth quarter of fiscal year 1996. Gary Hasenstab reported that the cost of the 1995 program has already been exceeded by avoided payroll costs for the first four months, and that the program has been very successful. After discussion on this matter, it was moved, seconded and duly carried to recommend approval of the extension of the early retirement incentive program, as indicated above, to the Executive Committee. FAHR95-38 Consideration of motion authorizing selection of a consultant and a professional services agreement for a New Financial Information System. Phase Ill, Selection Process for Hardware and Software: and Phase IV. Implementation and Acceptance of the Selected Hardware and Software Solutions. Mike White, Controller, advised that the firm of Deloitte &Touche has been selected to complete Phases I and II for the selection, acquisition and installation of a new financial information system within the Districts' Finance Department. In October 1995, the FAHR Committee approved the F.I.S. Request for Proposals and authorized staff to solicit proposals for professional consulting services to complete the project. Mr. White reported that four (4) proposals were received on Friday, October 28, 1995, from Ernst & Young LLP, A.E.F. Consulting Systems, Intelligent Directions Consulting, and Kerry Consulting Group. Interviews were conducted on November 2 and 3, 1995. After interviewing and evaluating each of these· consulting firms, Kerry Consulting Group was found to offer the best services consistent with the requirements of the project, and their bid was found to be within the amount budgeted for the project. Mr. Dennis Vlasich was introduced and he described his experience, knowledge and approach to projects of this type. Minutes of Finance, Ad·-')1. and Human Resources Committ Page6 November 8, 1995 After discussion on this matter, it was moved, seconded and duly carried to approve staff's recommendation to enter into a professional services agreement with Kerry Consulting Group for a New Financial Information System, Phase II, Selection Process for Hardware and Software; and Phase IV, Implementation and Acceptance of the Selected Hardware and Software Solutions; for a sum not to exceed $58,263. 8. NEW BUSINESS FAHR95-44 Consideration of Resolution No. 95-• Revising Districts' Procedure for Settlement of Claims Made Against the Districts: Settlement of Claims Made by the Districts: Collection of Delinquent Accounts Owing to the Districts; Settlement of Civil or Administrative Actions; and Settlement of Worker's Compensation Actions; and repealing Resolution Nos. 93-13 and 90-89. Gary Streed reported that the Directors approved Resolutions in 1990 and 1993 which established staff's authority to settle different types of claims by and against the Districts. The purposes of this proposed Resolution are to combine the existing authorities into one Resolution and to revise the dollar thresholds of the authority levels. The authority levels proposed will parallel those recently approved for purchases and other authority delegations in Resolution No. 95-62. Mr. Streed summarized the proposed changes to be included in the proposed resolution. After discussion on this item, it was moved, seconded and duly carried to recommend the Executive Committee approve a resolution amending claim settlement procedures, and to direct staff to report annually on settlement activities and results. FAHR95-45 Consideration of motion to review. approve and file Joint Works Budget Reviews prepared by staff for the quarter ended September 30, 1995. Gary G. Streed presented the Joint Works Budget reviews for the quarter ended September 30, 1995. He reviewed the summary statements of the Joint Works Operating Costs, the Joint Works Capital Improvement Program, and the costs of the workers' compensation, public liability and health plan self-insurance funds for the three months of fiscal year 1995-96, as well as some comparative graphics. After discussion on this item, it was moved, seconded and duly carried to review, approve and file these reports. Staff will report in January on labor charges outside of the Treatment Plants. Minutes of Finance, Ad(~ and Human Resources Committn Page 7 November 8, 1995 Summary reports for the Joint Works and the individual Districts will be considered by the full Boards of Directors at their next meeting. FAHR95-46 Consideration of motion to receive, approve and file the Annual Audit Report submitted by Moreland & Associates, Certified Public Accountants, and staff; the annual Management Letter. the Auditor's Report to the Finance, Administration and Human Resources Committee, and the Appropriations Limit Report: and forward the Comprehensive Annual Financial Report to the Executive Committee. Mike White announced that the Districts' independent auditors, Moreland & Associates, have completed their examination for 1994-95. Each year, the FAHR Committee reviews the results of the audit and the corresponding management letter. He advised that this year, the Comprehensive Annual Financial Report (CAFR) has been completely prepared in-house, for the first time. The CAFR will be submitted to the Government Finance Officers' Association (GFOA) for their review. Michael Moreland, Partner and Charles Acocello, Senior Manager, and Julie Pritchard, were in attendance and answered some of the Directors' questions regarding the audit and the CAFR. After some discussion, it was moved, seconded and duly carried to receive and approve the: Annual Audit Report submitted by Moreland & Associates, Certified Public Accountants, and staff; the annual Management Letter; the Auditor's Report to the Finance, Administration and Human Resources Committee; and the Appropriations Limit Report; and forward the Comprehensive Annual Financial Report with an editorially revised transmittal letter to the Joint Boards. (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. Minutes of Finance, Ac ·n. and Human Resources Commit'. , Page 8 November 8, 1995 (13) CONSIDERATION OF UPCOMING MEETING DATES AND ITEMS TO BE DISCUSSED AT THOSE MEETINGS The next Committee meeting is scheduled for Wednesday, January 10, 1996. (14) ADJOURNMENT The meeting was adjourned at 7:00 p.m. GGS:lc J:\WP0OC\FIN\CRANE\FPC.MTG\FAHR.95\FAHR.MINIMFAHR11.95 , Format 0 Written Report D Overheads 0 Slides D Flip Charts Anticipated Time 6 min. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (4)(d)(2) Summary AGENDA FOR NOVEMBER 8, 1995 Treasurer's Report As previously reported, both PIMCO and Mellon signed their final contracts in time for the U.S. Treasury Bill maturity of September 7. October will be the first full month of external money management. Monthly reports are available from PIMCO and Mellon on the sixth day after calendar month- end. Thus, they are not available for the regular FAHR Committee mailing, but will be distributed at the meeting. Attached are a three-page Portfolio Detail by Sector report and a one-page Portfolio Summary by Sector report which we hope to obtain on-line from Mellon Trust in the near future. These reports include a description of our investments, our current market value, the percentage that would be realized if fixed income securities were sold, the estimated annual income from fixed securities, and the current yield for fixed securities. The annualized gain/loss, the estimated annual yield, and the current yield are not reported for cash and cash equivalent investments, which are purchased at a discount with the interest imbedded in the maturity value. State of Calif. LAIF Bank of America ·:.:•:-:::::::::::·: ·-.· /??:\::.::;: .. PIMCO -Short-term Portfolio PIMCO -Long-term Portfolio District 11 GO Bond Fund Debt Service Reserves @ Trustees Staff Recommendation $12,943,353 1,269,187 60,520,792 236,765,148 10,013 26,324,156 $337,832,649 Staff recommends the Committee receive this report and the supplemental information which will be available at the meeting, approve and forward the reports to the Executive Committee and the Joint Boards. J:IWPDOCIFINICRANEIFPC.MTGIFAHR.95\JTEMITREAS11.95 . ~Q~~ ¥. ~fQRT COUNTY SANITATlON DISTRICTS OF ORANGE COUNTY INVESTMENT MANAGEMENT PROGRAM Pi:MCO'S PERFORMANCE MONITORING & REPORTING (for the month ending October 31, 1995) Uquld 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: .. nn~ ~, 4 $60,520,421 I $60,531,195 .15 . .25 $90,781 0% 68% AA 0 .46 ----------- .42 I : MONTHLY REPORT C--OtJNTY SAMTATioN biSTIUcfs OF ORANGE coUNTY INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month endi.ng October 31, 1995) Long Term Operating Monies 14.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value: Historical Cost: 14.1.2 MODIFffiD 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.S 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 II 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: ey. I --nfl"I• ---' $236,571,005 $235,423,026 2.27 2.4 $5,370,162 0% NA AA 0 .98 ----------- .98 0 I ( C November 8, 1995 $500 $400 I! !$300 "S Js200 i $100 CSDOC TOTAL CASH. & INVESTMENTS ~ ~--- Dec6 Dec31 Jan 31 Feb28 Mar31 Apr30 May 31 June 30 July 31 Aug. 31 Sept 30 Oct 30 J:IWPDOC\FIN\CRANE\FPC.MTGIFAHR.95\ITEM\TREAS11.95 -. OCSGOOOlOO MztiLON TRIJS'l' P,t.GE;: 1 OP. cnY C:ONl!IOt PORTFOLIO 11Jt9fA~Y BY !ECTOR BASE: U!O 31-oeT·U,5 KBUOO , or UNREALIZED E!ITIMATt.0 CIJI\I\ PORTrOLIO CI9TRIBUTION COST MARl(JT v~u,: TOTAL ~J:N/1.0SS ANNUAL INCOMt Ytti:,o --------------------------~----------------·-·-----·----------------------------------------------------~· ----·--- CASH, C~SH EQUIVALENTS CASH 1.38 1,38 0.001 0.00 o.oo o.oc BANKERS' ACCEPTANCES 2,93!1,016,6'7 2,935,016,6'7 0,99\ 0.00 o,oc 0,00 CCM,U:RCI.IU. ~A~ER -DISCOUNT 551 1H, 531.00 55,194,531,00 18,57' o.oo 0.00 0,00 lJ.S.AGtNCitS -LESS TltN lYR 3, ass, 01s.e3 J,055,075,93 l,031 0.00 c.oo 0,00 rtCERAL KOMt LOAN MORtGAGt -~E 9,Ul,382.45 91 191,382,4S 3,091 0,00 0.00 o.oo ffiHA rssur.s -L!.!!S THN lYP. 11,895,840.00 11,us,e,0.oo •.oo, 0,00 o.oo C.00 FED HM LOAN BNK -LESS THH l~R l!,827,330,00 11,827,330.00 3.981 0,00 o.oo 0.00 !SDT RESERVE DEPOSJ:T ACCOUNTS JO&,i'!5,00 306,755,0C 0.10, o.co 12,270,20 4,00 ~~-------------------------------------------------------~--· -----------------------TOTAL Ck!IH, CASH £QUlVALtNT5 94, 40!1, IJJ2,J3 94, 40S, g32, 33 31. 76\ 0,00 12,270.20 0.01 FIX£D !NCOHt SEC1JRI'l'It5 U.S. GOViRNMtNTS 100,491i1,218.75 101,,,0,130,00 34,13\ 911,511.25 6,911,250.00 6,81 U,g, AGtNCil.S 52, no, n3.2e 53,082,738.70 17,96\ 361,825.42 3, 592, 18'. 00 6. 75 !A.~KING, rIN.a.NC~ 31,464,810, 61 n, s21, ou. as 10.GOI 56,204.24 2,208,167.00 7.01 INDVSTRIAJ. 1!,!!107,100,00 11,560,140,00 3.89' !13,040,00 988,SOO,OO e.ss DTlitR CORPOAATE BONDS 2,554,0!0,00 2,543,675,00 0,861 -10,375.00 213 1 7;0,0C 9.40 M-·~~----~-••----------~~-------------------~~---------•----------------------------TOTAL rixtO lNCOMt StCURITitS aa,1H,m12.64 200,178,298,55 67,34' 1,432,205.91 13,904,451.00 6,95 OTHER PORTrOLIO ASSETS PAYABLES/~r.cmIVMLtS 2,701,709,82 2,101,709.92 0,91' 0,00 o.oo 0,00 ----------·----------------·------------------------------------------------------------TOTAL OTHER PORTrOLIO ASSETS 2,701,709,82 2,701,709.82 o.gu 0,00 0.00 0.00 ________ _..________ ---•---------------_____ .. ___ ------------------____ .,. ___ .,________ ------- N[T PO~TFOLIO A$StTS 295,85.3,7:U.79 zg7,2S5,940.70 100,00, 1,432,205.91 13,916,721.20 4,59 OCSG000100 011. CITY CO>ISOl, SHAP.ES/PAR SECURITY DESCRIPTION MtU.ON 'l'~UiT PORTFOLIO DtT~!L BY SECTOR 31 •OC:'1'-1995 HA1'1<t't PIUCt , or H.\RKtT VAI.UE TOTAii COST PP.Gt: 1 BASt: use H!llOO UN~tALIZtO tSTIMATEC CURR GAIN/LO!! ANNUAL INCC,.U: Y~D --------------------·---·•----------------------------------------------------------.. .--.. ------------------...... -·----------------------- CASH lo CAsK £'2lJIVAl.ENTS CASH 0 CT\SH 1,000 1.38 0.00 1.31 0,00 0.00 0.00 -----------~---------·-~-----------·------------------------------~---------... sosroTAL c1.stt 1,38 0,00 l,38 0.00 0.00 0,00 BANKERS' ACCEPTANC!:S 3,000,000 REPUBLIC NtW YORK B/A DISC 97,834 2,935,016.67 0.99 2,935,016, G'7 0,00 o.co 0.00 02/01/UH ------------------------------------------------------------------------~----SUBTOTAL BANKERS' ACCEPTAMCt9 2,935,016,67 0,99 2, 5135, 016. 67 o.oc o.co 0,00 Cot-c-fERCIAL PAPER -DISCOUNT 11,800,000 AMERICAN TEL & TL Dtsc U.380 11,726,879.l• 3,U 11,i26,879,34 C,00 o.oo 0.00 11/03/1995 3,000,000 MSOCIAT!.S C~ NA DISC 98,62'7 2,!i!S8,820,00 1.00 21 958 1 B20.00 0,00 o.oo o.oo 12/(14/1995 11,500,000 P.SSOCIATES C~ NA DISC 99.596 11,338,SH,44 3,81 11,339,514.44 o.oo 0,00 o.oo 12/06/1995 300,000 Knf INTL TIN !NC DlSC 08.3~3 295,060.00 0.10 295,060.00 0,00 0.00 0.00 01/17/1996 5,S00,ooo NtW s. ~ts TRSY DISC 99.088 S,449,846,11 1,83 5,449,846.ll 0.00 0,00 0,00 11/10/1995 400,0CO NEWS. KA.L£B T~SY DISC H.477 397,906,33 0,13 39'7, 906. 33 c.oc 0.00 0,00 11/13/1995 3,000, 000 NEW S. WALE:! TRS'f DISC 99,0U 2, 11"71, 97 5. 00 1.00 2,971, 97S,00 ,o,oo o.oo o.oo 12/11/1995 14,000,000 ONTARIO KYORO OISC 98.!,69 13,'799,698,U 4.64 13,199,698.B9 o.oo o.oo o.oo 12/08/1995 400,000 QUEENSLAND TR~ OlSC 99. 608 394,432.56 0.13 394,432.56 0.00 o.oo 0.00 12/12/1995 3,000,000 TR&ASURY CP VICT DISC 99,0516 2, 972, 877. so 1.00 2,972,87'1,SO 0.00 0.00 0,00 11/30/1995 2,900,000 U 3 ffl:ST C°""1UN DISC 99,604 2,888,520,83 o. 91 2,898,520.83 o.co o.cc o.oo 11/1-4/1995 -----------------------------------------------------------------------~-----SU~TOtAL C~ERCIAL PAPER -DISCOUNT !!,194,531,00 U,S7 ss, u4, s:n. oo 0.00 0.00 o.oo U,S,AGENCIES -LESS THN l'fR 3,100,000 rm.MC CISC NT 98, SSl l,055,075.BJ 1.03 3, 05.S, 075, 83 o.oo 0,00 0,00 MAT 01./22/1996 ---------------·-------------------------------------------------------------SU!TOTM. U.S.AGWCits -Lta5 THN lYR 3,0S5,075,83 1,03 3,055,075.83 o.oo o.oo o.oo tEOtRAr.. HOMt LOAN MORTGAGE •LtSS TH»/ 1 rR 1,300,000 fEO HOME LN HTG CORP DISC NTS 99,59.l 1,294,704.ti7 0.4,f 1,294,'704,67 o.oo 0,00 o.oo MAT ll/20/19515 a,000,000 rtDtRAl., ~CNE ~N MTG CORP DISC 98. 708 i,996,67'1,78 2. fi6 7, 996, 6'77, 79 c.oo o.oo 0,00 MA.T 12/15/1995 ------------------------------------------------------------------·---------- OCSG000100 OP. C rTY CON.SOL SKARtS/PAR $£CU~ITY 01:SC~?PTtON HtLLON TRUST PORTFOLIO DiTAIL BY 8ZCTOR ll-OC:T-l9U MARKET PIUCt , or lo{A~l<tT VALUE tOTAL COST PAGE: 2 BASE: USD HBllOO UNREAL:zto tS?IMl'TtO CURR GAIN/LOSS ANNUAL INCOHl YLO --------------------------~------------~---------------------------------~---------------------------------------------------------SUBTOTAL FtD~AAL HOHE LOAN MORTGAGE rNHA ISSUES• LES! THN 1YR 12,000,000 rEDtAAL NATL MTG ASSN DISC NTS 99,132 MP.T 11/03/1995 9,191,382.45 3.09 9,191,382.45 11,e9S,940.00 4,0C 11,99S, 840, 00 0.00 0.00 o.oo 0,00 o,oc o.cc --------------------------------------------------------------------·--------------SUBTOTAL rNMA. ISSUES~ LESS THI'! lYR rED HM LOAN BNK -LE!5 THN lYR 12,000,000 FED HOME LN BK CONS DISC HTS M.llT 01/24/1996 98,561 SUBTOTAL rED HM LOAN BNK -Ll!:BS THN BSDT RESERVE DEPOSIT ~CCOUNTS 306,755 BSOT R£SE~v1: DEPOSIT ACCOUNT-100,000 PU8LlC II SUBTOTAL BSOT RtStRVt OtPOSIT ACCOUN TOTAL CASH, CASH EQUIVALENTS fIXtD INCOME SECURITIES U,S, GOVt!WMtNTS 11,995,940.00 4,00 11,895,840.00 o.co 0.00 o.oo 11,827,330,00 3,98 11,827,330,00 0,00 c.oo o.oo ------------------------------------------------------·----------------------11 1 927,JJO.OO J.98 11,827,330.00 0.00 o.:;o o.oo 306,755,00 0,10 306,755,00 o.oo 12, 27 0, 2 0 4 , 00 _. _________________ . _______________________ _. ___________ ,.. ________________________ _ 306,755.00 0.10 306,755,00 0.00 12,270.20 • ,00 ----------------------------------------------------------·----... -----------------94,405,;32.33 31.76 94,405,932.33 o.oo 12,270.20 0.01 97,000,000 U 9 T~tASURY NOTtS 104,609 101,470,730,00 34,13 100,499,218,75 971,511,25 6,911,250.00 6.81 07.1251 09/J0/1999 DD 09/30/94 SUBTOT.-J,, U,S, GOVERNMENTS U,S. AGtNCIES 2,355,000 rtOtJU\L He.Ht LN MTG CORP DtB 100,5~4 B.0801 02/Qg/1998 101,470,730.00 34,13 100,499,218.75 971,511.25 6,911,250.00 6.91 --362,08 190,284,CC a.OJ _) 25,000,000 FEC!lRAL HOM!: LN MTG DEB 101.105 2,369,988,70 0,80 25,2761 250.00 B.50 25,437,500,00 8,56 l!,369,350,7& 25;000,000.00 25,351,552.50 276,250.00 11 680,CCC.0O 6,65 85,937.50 1,712,500.00 6.73 6,720\ 10/02/2000 DD 10/02/95 2s,ooo,ooo rEDtAAL NATL MTG ASSN DEB lOt,7~0 6,aso, 0~12612000 oo 0S/26/95 SUBTOTA.L U.S. AGtNClts BANKING, rINII.NCt 1,500,000 CHRYSLER.f!NL MTN TR t 00201 8,160' 01/31/1997 OD 01/11/95 40!,000 CHRl3LER FitlL MTN TR f 00224 s.oao, 01/31/1997 oo Cl/3t/9! 1,500,000 CHRYSLtR rINL MTN TR f 00258 7,380\ 03/17/1997 DO 03/03/95 2,900,COO CHRl3LER FINL MTN TR t 00306 7,270\ 04/!3/1~99 DD 04/13/95 102,329 102,319 101.634 102.248 -------------------------------------------------------~---------------------53,082,738 I 70 17,U 52,720,913,29 361,925,42 3,582,784.00 6.75 l,534,920,00 0,52 l,534,950,00 -30.00 122,400,00 7,97 475,793, 35 0, 16 475,972.51 -HIS! .26 37,572.00 7. 90 1,524t510,00 0.~1 1,522,140.00 2,370.00 110,700,00 7,25 2,965,192 .oo 1.00 2,952,996.00 l21 29S.OO 210,830,00 7.11 OCSG0C0100 Hl.LLON TRUST FP.GE 1 3 OA CITY CONSOL PORTfOLIO DETAIL BY SECTOR BASEi iJSO 31-oc'r-190! HBllOO MA.tKr.T , or UNRtAl.IZEC tSTIMATtC CURR SHARf!S/PAR SECURITY DESCRIPTION PRICE MARKET V.a.LUE TOT.a.I. COST GAIN/LOSS .a.NNO.-.L INCOME Yl,D -----------------~------•-uA----------~~----------------~---------------~----------------------------------------------------~-----1,000,000 CKRYSLER FIN!, MW TR f 00:335 99,907 ~.2~0\ 07/20/lg9e 00 07/19/95 7,lCC,000 roRD MOTOR CR MT~ TR f 00177 98. 7 63 VA~RT 03/J0/199; DD 03/30/94 4,QOC,000 fORD MTR CR MTN TAANCMt fTR 96 Sl9,36J rLTG/RT 11/09/19~8 OD 11/08/93 J,000,000 GM~ C MED TERM NT! 108,217 e.6251 1/10/2000 OD l/10/95 J, 700,000 GEN&AAL MTRS .A.CCEP MTN TR00324 106,142 8,3751 02/03/1999 DO O/Oj/95 1,,so,000 HOME SVGS AMtR ~ALIF r~ NT 101. ~JS 10.3001 06/12/1997 1,000,000 LtHMAN SROS :NC SR SUB NTS 100.789 7,000\ 5/15/1,91 DO 5/27/94 2,000,000 SEAM DC CORP M1N SER II 102,.!>20 9.000\ 08/0t/lg96 OD 09/01/91 1,000,000 ~tARS ROESUCK MTN f TR 00491 102.593 7.6901 02/27/199e DO 02/28/95 SU8TOT.a.L BANKING, FINANCE INCUSTRI-'L 1,sco,000 CHRYSLER CORP D[B 106. 1'574 10,4CO~ 08/01/1999 9,GCO,OCO PHILIP MORRIS COS NT 110.667 9.2501 02/15/20CO SVBTOT1.li INOUSTRIA.L OTH~R CORPOAATt BONDS 2,500,000 51!:ARS RO£BUCK, CO NT 101. 747 e,fso, oe/01/199~ SUBTOTAL OTHER CORPORAU 80ND9 TOTAL F!XtD INCo-tt StCURITIZS OT~tR ?ORTfOLID ASSETS PAYAbttS/IU:CtIV~BLtS 0 INT~R~5T ::U:CEIVABLZ SUBTOTAL PAYABLeS/RtCtIVABL[S TOTAL OTHER PORTfOLIC ASSETS 1.000 999,070,00 o. 3,4 9g3, lli0,00 5,1)10.00 62,600.00 6. 27 7,012,173.00 2.35 !i, 999, ?,18. 00 ::.2, 425. 00 .347,190,00 4.'..5 ), !1'74, 520,00 1.34 3,970,480.00 4,0~0.00 2 Ji, 50C, 00 5,98 3,246,510,00 1,09 3,22,,010.00 19,440,00 2?Je,no.~o , , 97 3,~2'.7,25•,00 1,)2 ), 911, uo.oo 1~,614,00 JM,815.00 ,,89 l,7H,S62,50 0,60 l,,86,1H.OO -1c,11:.5o 18~,750.00 :C.34 1,007,8110.00 0,34 l, 00'7, 520 ,00 3'70,00 70,000,0') 15.~5 ~,030,•00,00 0,69 ~,050,400.00 o.co 180,000.:J:) a. 79 1,025,9JO.OO 0.35 1,031,960.00 -5,930.00 76, 90:>.oo 7.50 ........ _______ -.. ----------------------... ____________ .. ----------------------------------- 3'1,521,014,8.S 10,60 31,•64,810,!il 56,2C4,24 2,209,161,00 ,.01 1,600,110.00 0.54 1,603,320.CiO -3,210.00 156,000.00 9. 75 91 96C,030,00 3.35 9,9031 78C.OO 5€,250,00 032,500,00 9.JIS -----------~---~-----------------·~-------------------~--------------·---------11,560,14¢,00 3,$9 ll.,S07,l00.00 S3,040,00 988,5CO,OO e.ss 2,S431 fi75,00 O.B!!i 2,554,050.00 -10,375.00 2'.I.J,'750.00 8.40 2,5~3,675,00 0,96 2,.55-4,050.CIO -10,375,00 213,1so.oo e.•=> 2001 1781 298.55 67.34 198,746,092.64 1,4321 205.91 13,904,,Sl.00 6.~S 2,701,709,92 0,91 2,701,709,82 0,00 0,00 o.oo -----------------~--------------__ ""'.,.. _____ _ 2,701,709.82 0,91 2,701,709,82 0,0:l o.oo o.oo 2,101,709.82 0.91 21701,70!1.82 o.oo :i.oo c.oo -----~--~------~---------------------·-------------------------------------N~T ?ORTFOL!O k!!StTS 291,28~,940.70 100.00 29~,853,134.79 1,432,205.91 ll,916,721.20 4.69 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 November 8, 1995, was duly posted for public inspection in the main lobby of the Districts' offices on November 2, 1995. Posted: IN WITNESS WHEREOF, I have hereunto set my hand this 8th day of November, 1995. Penny Kyle, Secreta each f he Boards of Directors of County Sanitation Districts Nos. 1, 2, , , 6, 7, 11, 13 & 14 of Orange County, California -~ ______ a-__ , 1995, /D:~( A.M. By: ~-AAJ_~--~~ J:IWPDOC\FINICRANEIFPC.MTG\FAHR.95\CERTPOST\CERTP011.95 phone: (714) 962-2411 mailing address: P.O. Box 8127 Fountain Valley, CA 92728-8127 street address: 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Member Agencies • Cities Anaheim Brea Buena Park Cypress Fountain Valley Fullerton Huntington Beach Irvine La Habra La Palma Los Alamitos Newport Beach Orange Placentia Santa Ana Seal Beach Stanton Tustin Villa Park Yorba Linda County of Orange Sanitary Districts Costa Mesa Garden Grove Midway City Water Districts Irvine Ranch COUNTY SANITATION DISTRICTS OF ORAI\JlJE COUNTY, CALIFORNIA November 2, 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. NOVEMBER 8, 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. The Executive Committee has been scheduled to meet at 7:00 p.m., immediately following the FAHR Committee meeting. Members of the Executive Committee are invited to attend the FAHR Committee meeting. A light dinner will be served at 6:30 p.m. between the meetings. J:IWPOOC\FINICRANEIFPC.MTGIFAHR.95\NOTICEINOTICE11.95 A Public Wastewater and Environmental Management Agency Committed to Protecting the Environment Since 1954 November 2, 1995 FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE TENTATIVELY SCHEDULED MEETING DATES Finance, Administration and Human Resources Executive Committee Committee Meetings Meetings Joint Board Meetings 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 October October 9, 1995 October 16, 1995 October 23, 1995 J:\WPOOC\F1N\CRANBFPC.MTG\FAHR.95\NOTICE\NOTICE11 .95 Roll Distribution After Meeting Penny Kyle __ Lenora Crane I ROLL CALL SHEET FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING DAT: November 81 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 TOM WOODRUFF, GEN'L. COUNSEL .•••••••••••••.•...••••.•• --------····································· ROU.1.95 TIME: 5:30 P .M. ADJOURN ___ _ ABSENT PRESENT t • I November 8, 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. NOVEMBE:R 81 1995 -5:30 P.M. ............. .. ........................................... ~ --------~-----' ------~-·------------------· .............. · ...... ,. ............................................................... q.' ......................... , ......... • ... J •• ': In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the Districts' Administrative Offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the Office of the Board Secretary. In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or that there is a need to take immediate action which need came to the attention of the Committee subsequent to the posting of the agenda, or as set forth on a supplemental agenda ' posted in the manner as above, not less than 72 hours prior to the meeting date. . . .............................................. _ ......................... , ................................. ,, ...... r·· ... ,. •• __ ......................................... ··-................................. , -, ............................. "' , ....................... _ •••• ( 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 ). November 8, 1995 (4) The Committee Chairman, General Manager, Assistant General Manager(s), Director of FinancefTreasurer, 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 Chair (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 October 11, 1995. (6) Consideration of PD&C95-36 -Consideration of motion to solicit proposals for Professional Planning, Design and Construction services for three projects as follows: Project No. 1 : Engineering Services for Investigation and Repair of Ocean Outfalls Project No. 2: Management of Peak Hydraulic Discharge Project No. 3: Determination of Financial Charges (David Ludwin/Tom Dawes) (7) Old Business. FAHR95-24 Consideration of motion extending early retirement incentive program provisions for all eligible employees: (a) Consideration of motion to recommend a Board Ordinance adopting the provisions of Government Code Section 31641.04 authorizing all eligible Districts' employees to receive two years additional service credit for retirement purposes. -2- November 8, 1995 Old Business (Cont'd.) FAHR95-38 (b) Consideration that the Ordinance should specify that provisions of the Early Retirement Incentive Program would be effective January 1 through March 30, 1995, and that the total cost- savings of positions filled at a lower level or held vacant for a period of time shall exceed the total actuarial cost of the additional service credit granted and associated paid leave payoff costs. (c) Consideration that, for a period of five years, or until such time as the full actuarially determined cost is paid to OCERS, the Districts' Controller will conduct an annual post-audit to verify that the savings exceed the actuarial and associated costs attributable to the additional service credit, and report the findings of that audit to the Finance, Administration and Human Resources Committee. The first report will be presented during the fourth quarter of fiscal year 1996. (Gary Hasenstab) Consideration of motion authorizing selection of a consultant and a professional services agreement for a New Financial Information System, Phase Ill, Selection Process for Hardware and Software; and Phase IV, Implementation and Acceptance of the Selected Hardware and Software Solutions. (Gary Streed/Mike White) (8) New Busines·s. FAHR95-44 Consideration of Resolution No. 95-_, Revising Districts' Procedure for Settlement of Claims Made Against the Districts; Settlement of Claims Made by the Districts; Collection of Delinquent Accounts Owing to the Districts; Settlement of Civil or Administrative Actions; and Settlement of Worker's Compensation Actions; and repealing Resolution Nos. 93-13 and 90-89. (Gary Streed) FAHR95-45 Consideration of motion to review, approve and file Joint Works Budget Reviews prepared by staff for the quarter ended September 30, 1995. (Gary Streed) -3- November 8, 1995 FAHR95-46 Consideration of motion to receive, approve and file the Annual Audit Report submitted by Moreland & Associates, Certified Public Accountants, and staff; the annual Management Letter, the Auditor's Report to the Finance, Administration and Human Resources Committee, and the Appropriations Limit Report; and forward the Comprehensive Annual Financial Report to the Executive Committee. (Gary Streed, Dir. of Finance.; Mike White, Controller; Michael Moreland and Charles Acocello, Moreland & Associates) (9) Closed Session. ~ .............................. ~• .. ·••-••· •••••-•••..,·••••••-••••-•••••••••••, ................. 1 ............................................................ •••••••••••• ............................................................ • .. ••••· .. • .. ••••n•••••• Closed Session: During the course of conducting the business set forth on this agenda as a regular meeting of the Committee, the Chairman may convene the Committee in closed session to consider matters of pending or potential litigation, or personnel matters, 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. ' ....................................................................................................... ~ ....................................... ' ................................................................................................... -............................................. . (a) Convene in closed session, if necessary (b) Reconvene in regular session. (c) Consideration of action, if any, on matters considered in closed session. ( d Report on discussion taken in closed session, as required. (10) Other business, if any. (11) Matters which a Director would like staff to report on at a subsequent meeting. (12) Matters which a Director may wish to place on a future agenda for action and a staff report. (13) Consideration of upcoming meeting dates and items to be discussed at those meetings. (14) Adjourn. -4- ,, ,. November 8, 1995 •·········· .......... _'"' -·•······ ....... , .. , ......................................................................................... ,, ... .., ........................................................... ,. ................. ... . . . . . . . . . . . . • a.=,=.:a.=a....=a.:===~=== • ::_! Notice to Committee Members: :I, If you have any questions regarding the Agenda, or wish to place items on the Finance, ~ Administration and Human Resources Agenda, Committee members should contact the : i Committee Chair or Secretary ten days in advance of the Committee meeting. l l ~::::: Chair. ~:;: i::: gm EHm,~501 I •••••·• .................................................................................................................................................................... ~-•a.a••·· .................................................... ·······' J:\WPDOC\FINICRANE\FPC.MTGIFAHR.95\AGENDAIAGENDA11.95 -5- {4)(d){1) and {4){d){2) Director of Finance Report and Treasurer's Report r Format • Written Report • Overheads • Slides 0 Flip Charts Anticipated Time 5 mins. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (4)(d)(1) Summary: AGENDA FOR NOVEMBER 8, 1995 Director of Finance Report Since June 1995, the daily rate COP program remarketing agents have been PaineWebber for the Series "A" and the 1993 Refunding COPs, and J.P. Morgan for the Series "C" COPs. Most fixed rate Series "B" COPs have been refunded and the 1992 Refunding COPs have always been 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, and especially at year-end, because of business taxes and statements. They decline to prior levels immediately in the following month. The average daily rate paid in 1995-96 has been approximately 3.6%. Staff will maintain our continuous rate monitoring and ongoing dialog with the remarketing agents and rating agencies to keep the Committee fully informed about developments in the program as they occur and at each meeting. Staff Recommendation Information only. J:IWPOOC\FIN\CRANE\FPC.MTGIFAHR.9511TEMIOOF11.95 ..... (') ~ C 0 --> RATE(%) N (') -I --.J m --m ..... ~ 0 .... N t,) ~ u, (J) <O 0 0 0 0 0 0 0 <O 0 0 0 0 0 0 0 u, 05-Jul-95 1 I ,. I T ·7 0 m <O ::i: 1 I I I N cii I I ' I CX) -I (') 0 12-Jul-95 "O 19-Jul-95 26-Jul-95 I 1 1 I r':' .. I I ' I I I ' I ! ' ' ' + I I I ' I I ' I ' 02-Aug-95 ' ' I I ;r I I I ' (") -0 l l I I DI I I I I I en s· I I I I i I I I I J 0 09-Aug-95 I ' I I 0 I I I I C'" I I I ("') C'" I ~ J I • ("') 16-Aug-95 I I ' ~ 0 + I I ' I I J I I I ' i " I ' I I I ' I ' I I ~ '-I I I ,, I "C I I I I ' 23-Aug-95 I I I ' ' ~ -I ~ I I I I I I I 0 I I I I I i m ca I I I I I I DI I I I I I i :c ::, I I I ' -30-Aug-95 I I I * en ! -I ~ I i 0 I I I I I :::0 )> 06-Sep-95 ' I I I * Q I I I I -< ' I I I I I en I I ' I ' i :::0 ::e ' ' ' ' ' I DI I ' I I ' I m -0 ! I ' ' I ~ " 13-Sep-95 I I ' I ' I 0 j t i 20-Sep-951 I I ' \ l I i :::0 I ' I I I -I ' I I I ' I I ~ 0 0 G) (I) ::, I ~ 27-Sep-95 t ,, ' ' ;.. I I I ' I I ii-• I I ' ' I I 04-Oct-95 I ' ,,:i, ' I I I ' ' I I' ' I ' ' 11-Oct-95 i ' I l•· I' I ' ' I I I I I I I I ' I I 18-Oct-95 I I I Iii-' ' I I ' ' I ' I I I I I I I 25-Oct-95 '-" • ~ 0 Written Report 0 Overheads De 0 Slides 0 Flip Charts Anticipated Time 5 min. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (4)(d)(2) Summary AGENDA FOR NOVEMBER 8, 1995 Treasurer's Report As previously reported, both PIMCO and Mellon signed their final contracts in time for the U.S. Treasury Bill maturity of September 7. October will be the first full month of external money management. Monthly reports are available from PIMCO and Mellon on the sixth day after calendar month- end. Thus, they are not available for the regular FAHR Committee mailing, but will be distributed at the meeting. Attached are a three-page Portfolio Detail by Sector report and a one-page Portfolio Summary by Sector report which we hope to obtain on-line from Mellon Trust in the near future. These reports include a description of our investments, our current market value, the percentage that would be realized if fixed income securities were sold, the estimated annual income from fixed securities, and the current yield for fixed securities. The annualized gain/loss, the estimated annual yield, and the current yield are not reported for cash and cash equivalent investments, which are purchased at a discount with the interest imbedded in the maturity value. State of Calif. LAIF Bank of America PIMCO -Short-term Portfolio PIMCO -Long-term Portfolio District 11 GO Bond Fund Debt Service Reserves @ Trustees Staff Recommendation $12,943,353 1,269,187 60,520,792 236,765,148 10,013 26,324,156 $337,832,649 Staff recommends the Committee receive this report and the supplemental information which will be available at the meeting, approve and forward the reports to the Executive Committee and the Joint Boards. J:\WPOOC\FINICRANE\FPC.MTG\FAHR.95\ITEM\TREAS11.95 November 8, 1995 $500 $400 I! 1$300 1 ls200 -i $100 CSDOC TOTAL CASH & INVESTMENTS $0 ,.... ..... .. •• ···' ······· -····· Dec6 Dec31 Jan 31 Feb 28 Mar31 Apr30 May 31 June 30 July 31 Aug. 31 Sept 30 Oct 30 J:IWPDOC\FINICRANE\FPC.MTG\FAHR.95\JTEMITREAS11.95 OCSG000100 M1tJ.,ON f"IJ$T P,\Gt: 1 011. CI TY CON!Ot PORTFOLIO 1Ufol4.I.AY BY SECTOR 8AS!:: U9D 31-0et-1n& HBllOO , or UNREALIZED E.!JTIMATtO CIJRR POATrOLIO OI9TRI8UTION C:OST MARl(JT V~Ut TOTAl.t ~IN/1.0SS ANNUAL INCOMt Yttt,D --·------------------------------------------··---------·-------------------------------------------------~-------- CMH, C.1.SH l:QUIV,1,L!NTS CASH 1,38 1,38 0.001 0.00 o.oo o.oc BANKERS' ACCEPTANCES 2,935,016,67 2, 935,016, 67 O,lll9' o.oo o.oc o.oo COMME~CIA!. ~A~ER -DISCOUNT 55,194,531.00 ~5,194,531,00 18,57' 0.00 0.00 0,00 U.S.AGtNC!tS -LESS 'l'liN ll'R 31 OS5, 07S. 83 l,055,075,83 1,03, 0.00 C.00 o.oo rtDEAAL HOH!. LOAN MO~TGAGt -Lt 9,191, 382.U g, 191,382, '! 3,09' 0,00 G.00 0.00 rNMA ISSUES -L!.SS THN l\'P. 11,895,840.00 u,egs,uo.oc 4,00\ 0,00 0.00 C.00 rED HM LOAN BNK -LtSS THN lY~ 1~, a:27, 330, 00 11,927,330.00 3.99' 0,00 o.oo 0.00 !SOT RESERVE DEPOSIT ACCOUNTS 306,755,00 306,755,0C 0.10, o.co 12,Z70,20 4,00 ~·-----·-------------------------------------------------~--------------------------TOTAL CASH, CMM tQUl:VALENTS 94,40fi,SJJ2.J3 9', ,os, 932, 33 31. 76\ 0,00 12,270.20 0.01 TIX~ !NCOHt SEC1.IRititS U.S. OOV!:RNM!:NTS 100,4Vli1,Zl8.75 101, '70, 730,00 34,131 911,511.25 6,911,250.00 6.81 U.S. AGENCIES 52, no, 913.20 53,082,738.70 17,86' 361,825.42 3,582,784.00 6. 75 8ANKING, FINANCE 31,464,810, 6l 31,521, 01'. 85 10.601 58,204,24 2,208,167.00 7.01 INCI\JS'l'RIAJ. ll,M7,100,00 11.,560,140,00 J.991 53,040,00 988, soo.oo a.ss OT}{tR CORPOAATE BONDS 2 1554,0!0,00 2,543,675,00 0,86' -10, 375.00 2t.3, 7;0,0C 8.40 --·~~-------------------------------------------------------------------------------TOTAL rixtO lNCOMt StCVRITIES 198,746,092.64 200,178,298,55 67,30 1,432,205.91 13,904,4.Sl.OO 6,9S OTHER PORTrOLIO ASSETS PAYABLtS/~tCEIVABLtS 2,701,709,82 2,701,709.92 0,!>11 0,00 0.00 0,00 --------------~-----------------------------------------------------------------------TOTAL OTHER PORTrOLIO ASSETS 2,701,709,82 2,701,70!1.82 o. 91\ 0,00 0.00 o.co -----------~--------·--------------------------------------------~-~~---------------N[! PORTFOLIO ASSET~ us, 853, 7Jt. 79 297,2B!,940,70 100,00, 1,432,2os.n 13,916, 721,20 4.69 OCSG000100 OR CITY CONSOL S~S/PAR StCURITY DESCRIPTION HUI.ON TRUST PORTFOLIO DETAIL BY 9ECTOR Jl•OCT-1995 MAl\l<t'r PIUCt , or MARKtT V-'LUE TOT1.L !,>A.Gt: l BAS!.: USC H81100 UN~!.ALIZtO tSTIMATEO CURR COST GAIN/LOSS ANNUAL INCCJl,fE r~D ---------··---·------------·----------------------------------------------------------------·------------~----------------------------------- CASH &. CAsH £QUIVALENTS CASH 0 CASH 1,000 l. 39 0.00 1.lB 0,00 0.00 0.00 ---------------------------"-----------------------~-------------------------SUBTOTAL Cl\Sli 1,38 0,00 l,38 0.00 0.00 0,00 BANKERS' ACCEPTANC~S J,000,000 REPUBLIC NEW YORK B/A DISC 97,834 2,935,016.67 o. gg 2,935,016. G7 0,00 0.00 0.00 02/01/li!i16 ------------------------------------------------------------~-----------~~---3UBTOTAL BANKERS' ACCf:PT.11.NCf!!I Co.r-c-fE.RCIAL PAPER -DISCOUNT 11,800,000 AMlRICAN TtL, TL DISC U,380 11/03/1995 3,000,000 ASSOCIAT!:S C? NA DISC 98,627 12/04/1995 11,500,000 ASSOCIATES C~ NA DISC 9B.M6 12/0li/U95 JOO, 001) KFW INTL ru1 !NC DISC U,353 Ol/17/1H6 5,500,~00 NEWS, WP.LES TRSY DISC 99,0U 11/10/1995 400,000 Nf!~ S. WALE.S TTlS'i OI:sc !19. 477 11/13/1995 3,000, 000 NEW S. WAL~ TI\S"i DISC 99,0U 12/11/19115 14,00~,ooo ONTARIO trtORO DISC 98. ~69 12/08/1!>95 400,000 QUt!.NSLAND TRt.1\3 OtSC 99.608 l2/12/19!1S 3,000,000 TREASURY CP VICT DISC 99,0!Hi 11/30/1995 2,900,000 U 3 WEST COf11l.lN DISC 99,604 ll/lVl995 SUBTOtAL CQ1MERCI1'L PAPER -DISCOUNT U,S,AGENCIES -LtSS THN 1YR 3,100,000 nil.MC OISC NT MAT 01/22/199~ 98,SSl SUSTO~,U, U.3,AGtNCIES • LESS THN lYR tEOtRJU. HCME LOAN MCRTGAG~ -Lt55 TH).N 1 rR 1,300,000 fED HOME LN MTG CORP DISC ~TS 99,59.J MAT 11/20/HSIS 8,000,000 rtDERAl, ~CME ~N MTG CORP DISC 98.708 Ml\T 12/15/1995 2,935,016,67 0.9~ 2,935,016.67 o.oc o.co 0,00 11,726,079.34 3. 94 11,726,879,34 C,00 0.00 0.00 2,!1!18,1120,00 1.00 2,9581 820.00 0,00 0,00 c.oo 11,338, SH, 44 3,81 11, JJ8 f 514 • 44 o.oo o.oo o.oa 295,060.00 0.10 29$,060.00 0,00 0.00 0.00 s, 449,846 I 11 1, 83 ~, 449,846.11 0.00 0,00 0,00 397,906,33 0,13 397,906,33 C.00 0.00 0,00 2, 9"71, 97 S. 00 1.00 2,971, 975,00 0,00 0,00 0.00 13, '199,699. n 4.64 13,199,698.89 o.oo 0,00 0.00 394,432.56 0,13 394,432.56 0.00 o.oo o.oo 2,!172,877.50 1.00 2, ~72, 877, so 0.00 0.00 o.oo 2,888,520, 83 0.97 2,888,520.83 o.cc a.cc 0.00 ---------------------·------·----------------------------------------------.--------55,194,531,00 18,S7 55, 194, s:n. oo 0.00 0.00 o.oo J,055,075.9l 1.03 3,055,075,83 0.00 0,00 0,00 --------------------------------------------------------~--------------------3,055,075,83 1,03 3,055,075.83 o.oo 0.00 o.oc 1,294,704.67 0,4" 1,294,704,67 0.00 o.co o.oo 7,896, 67'1, 78 2.&6 1, 896, 677 I 78 C.00 0,00 o.oo --~-------------------------------------------------------~--------~-----·--- ~) ~./ OCSG000100 -:>R CrTY CON!OL SHARES/PAA SECURITY OtsCA?PTtON H!LLON TRUST PORTFOLIO DCTAIL BY SECTOR l1-0C:T-l9U MARKET Pl'lCE , or lo'.AAKtT VM.Ut tOTAL COST -. PAGE: 2 BASE.: USO H8l1CO UNRtALIZtb £STIM.l'Tto CURR QAIN/LOSS ANNUAL INCOMt YLO ------------·------------------------------------------------------------------------------------------------------------------------SUBTOTAL r£DEAAL HOHE LOAN MORTGAGE rNMA ISSUES• LESS THN 1YR 12,000,000 FEDtRAL NATL MTG ASSN DISC NTS 99,132 MII.T 11/03/1995 9,191,382.45 3.09 11,89S,840.00 4,0C 9,191,382.45 0.00 0.00 o.oo ll,US,840,00 o.oo 0.00 o.cc -----------------------------------------· ---------------------------------------SUBTOTAL rNHA ISSUtS ._ LE:SIS THN lYR rED HM LOAN BNK -LE!S THN lYR 12,coo,000 FED HOME ~N BK CONS DISC NTS MAT 01/24/1996 98,561 Sl1BTOTAL rED HM LOAN BNK -LESS THN BSDT RESERVE DEPOSIT ~CCOUNTS 306,755 BSOT RESE~v1: DEPOSIT ACCOUNT-100,000 PU8LIC II SUBTOTAL BSDT RtsERVt DEPOSIT ACCOUN TOTAL CASH i CASH E~IVALl!NTS F!XED INCOME SECURITIES U,S, GOVERNMt~TS 11,895,940.00 4.00 11,895,840.00 o.co o.oo o.oo 11,827,330,00 3,98 11,tl27,330,00 0,00 c.oo o.oo 111 827 1 330.0Q J.98 11,927,330.00 0.00 o. :;o o. oo 306,755,00 0.10 3015,755.00 0,00 12,210.20 4,00 --------------------------------.. -------------------------------------------------306,755.00 0,10 306,755.00 o.oo 12,:no.20 •.oo ••w-•-•-r~•-•••••-••-•--••------------•------•--------••--•---~--•••--•••-~-• gc,,os,gJ2.33 31.76 94,1105,932.33 0.00 12,27C.20 0.01 97,000,000 U 9 T~tASURY NOTES 104,609 101,470,730,00 34,13 100,499,218,7S 971,Sll,25 6,911,ZSO.OO 6.81 07.1251 09/30/1999 DD 09/30/94 SUBTOTAL U,S, GOVERNMENTS U,!. AGENCIES 2,355,000 rtCtJlAL Hef-it LN MTG CORP DEB 100,5~4 e.oeo, 02/09/1998 25,0001 000 FEDERAL HOME LN MTG Ota 101,105 6,720\ 10/02/2000 DD 10/02/95 25,~00,000 fEDERAL NATI. MTG MSN DEB lOl,750 6,850\ 0~/26/2000 OD OS/26/95 SUBTOTAL U.S, ~GtNCits 5ANKING, rINANCt 1,500,000 CHRYSLER FINL MTN TR t 00201 e.1so, 01131119p7 DD 01111/gs 4o!,000 CKRY$LER FI11L MTN T~ f 00224 e.oao, Ol/31/1997 oo 01/31/95 1,500,000 CHRYS~ER !INL MTN TR f 00258 7,380\ 03/17/1997 DD 03/03/PS 2,900,000 CHRl3LER FINL MTN TR f 00306 7,270' 04/!3/lgge DD 04/13/iS 102,328 102,319 101.634 102.248 101,470,730.00 34,13 100,499,218.75 2,J6a,9ae.10 o.eo 2s,21612so.oo a.so 25,437,500,00 8,56 i, 369,350, '79 25,000,000.00 2S,J51,S62.50 971,511.25 6,911,250.00 6.91 -362,08 190,284,00 a.OJ 276,250.00 11 680,COC.OO 6.65 85,937.50 1,712,500.00 6.73 ________________________________ _,_ ________________ _,_ ... ., ___ .,. .. ____ ._ __________________ _ 53,082,738 I 70 17,86 52,720,913,28 361,925.42 3,582,794.00 6. 75 1,534,920,00 0,52 l,534,950,00 -30.00 122,400,00 7,97 475,783. :,5 0,l6 475,972.51 -199.26 37,572.00 7. 90 11 524~510,00 O .. H 1,522,140.00 2,370.00 110,700,00 i,Z5 2,965,192.00 1.00 21 952,B!lfi.OO 12,295.00 210,!!30,00 7,11 OCSGOCOlOO Ml.LLON TP.UST FAGE1 3 .. OR C!TY CONSOL PORTrOLIO DETAIL BY SECTOR BP.SEt USO .H•OC'r•19g! HB1100 MA~Kr.T , or UNRr>J.IZEO ESTIMATtC CURR SHARES/PAR SECURITY DESCRIPTION PRIC't MARKET VJU.VE TOTJU. COST GAIN/LOSS ANl'IO.a.L UlCOME YLO -------------------•--•--w------------M-------------------M-----~-------------------4-------------~-----•--M•-------•---•-----------~-- 1,000,000 CHRYSLER FIN!J MTtl TR f 00335 99,90., 6,260\ 07/20/1998 OD 07/18/9! 7,100,000 roRD MOTOR CR MT~ TR I 00177 98.763 VAR/RT 03/30/199; OD 03/30/94 4,QOC,000 :CORD MTR CR MTN TAANCME tTR !16 99.36J f'LTG/RT 11/09/1998 DD 11/08/93 31 000,000 GMAC MED T~RM NT! 108,217 9.625\ l/10/2000 OD 1/10/QS 3,700,000 GENERAL MTRS .A.CCEP MTN TP.00324 106.142 8,375, 02/03/199~ DO 0/03/95 1,750,000 HOME SVGS AM~R C~LIF FA NT 101. ~35 10.3001 0~/12/1997 ~.000,000 LlHMAN SROS !NC SR SUB NTS 100.789 1,000, s/1s/1,91 DD 5/27/94 2,000,000 SE~RS DC CORP M1N SER II 102,$20 9.000\ oe/Ot/1g9i; DD 09/01/91 1,0001 000 StARS ROtBUCK MTN f TR 00491 102.593 7.6901 02/27/199ij DD 02/28/95 3U8TOTM. BANKING, fINANCt INDUSTR!Al 1,sco,000 CHRYSL~R CORP oie 106. fl4 10.400, 08/01/1999 91 0CO,OCO PHILIP MORR!S COS NT 110.667 9.250\ 02/15/20CO SVB!OTAL INDUSTRIAJ.. OTH~R COkPOAATt BONOS 2,500,000 S~RS ROtBUCK, CO NT 101. 747 e.s5o, oe/01/199~ SUBTOTAL OTHtR CORPORAtt 80ND9 TOTAL rIXtD !NCOM~ StCURITitS DT~~R ~ORTroiI • ASSETS PAY~BttS/FU:CtIV~BL£S 0 INTE:.REST ;ttCEI"JABLZ SUBTOTAL PAYABLES/R£CtIVABLtS TOTAL OTHER PORTfOLIC ASSETS N~T ~ORTrOL!O MStTS 1.000 999,0.,0,00 o. 34 gg~,uo.oo !!i, 910.00 62,600.00 6.27 7,012,173.00 2.35 5,999,749.00 ~2, 425.00 347,190,00 4. '.;5 3,!174,S20,00 1.34 3,970,480.00 4,040.00 237, soc.co 5.98 l, 246, 51,~.oo 1.09 3,22'7,070,00 19,440,00 259,7!.0.10 , • 9'7 3,~2,,2s~.oo 1.)2 3,911,640,00 15,614,00 309,975.00 '7, 99 l,7'76,662,50 o. 60 11 1as, n4 .oo -10,11:.so 183,750.00 !C.34 1,007,890.00 0.34 l,007,520,QO no,oo 70,000,0') 6.:i!S 2,0~0,400,00 0,69 2,050,400.00 0.00 190,000.0:) a.1s 1,025,930.00 0.35 1,031,860.00 -5,930.00 ,s,900.00 "7.50 31, 521, 014 , 8 S 10,60 31,.64,81.0.61 56,2C4,2' 2,208,t67,00 '7 .01 1,600,110.00 0.54 1,603,320.vO -3,210.00 156,0CO.:rn 9.75 9,96C,030,00 3.35 9,90J,78C.OO 56,250.00 032, 50(), 00 9.36 ____________ .,,_ .. .__ ... ____________________________________________________ _._ .. ________ ll,S60,14C,OO 3,$9 11,507,lOO,OO 53,040,00 988,500,0C a.ss 2,543,675.00 0,8!5 2,554,050.00 -10,375.00 213,750.00 8.40 2,543,675,00 0.86 2,554,030.00 -10,375.00 213,750.00 8,40 ) 2001 1781298.55 67.34 198,746,092.64 1,4321205.91 13,904,~Sl.OO 6.95 2,701,709,92 0,91 2,701,709.92 0,00 0,00 o.oo --•••-••w•-•-------------------------------2,701,709,82 0,91 2,701,709,52 0,0'.) 0. :lO 0.00 2,101,709.82 0.91 2t701,709,B2 0,00 0.00 c.oo ---------------------------------... -----------------------------------------------------297,285,940.70 100.00 295,8!3,734.79 1,432,205.91 13,916,721.20 4.69 (5) Approval of Minutes \ J FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR NOVEMBER 8, 1995 ( 5) Consideration of motion to approve the draft Finance, Administration and Human Resources Committee Meeting Minutes of October 11, 1995 Summary Attached is a draft of the Finance, Administration and Human Resources Committee meeting Minutes of October 11, 1995, for approval by the Committee. Staff Recommendation It is recommended that the minutes of the October 11, 1995, Finance, Administration and Human Resources Committee meeting be approved. These minutes were submitted to the Executive Committee at their October 18, 1995 meeting, and no further action is required. J:IWPOOCIFINICRANEIFPC.MTGIFAHR.951FAHR.MINICVRMFH11.95 ' . ' 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, 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, Chair Jan Debay James Flora John M. Gullixson Wally Linn Thomas Saltarelli Peer Swan Committee Directors Absent John C. Cox, Jr., Joint Chair Burnie Dunlap Roger R. Stanton, Vice Chair 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, J '.1in. and Human Resources Commi 3 Page2 October 11 , 1995 (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 Committee Chair 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, Adr.'l and Human Resources Committe() Page3 October 11, 1995 (e) Report of the Director of Human Resources Gary Hasenstab had no report. (f) 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, I 11in. and Human Resources Commi 3 Page4 October 11, 1995 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 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, 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, Adr ! and Human Resources Committe) Pages October 11, 1995 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 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. 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, I :1in. and Human Resources Commi 3 Page6 October 11, 1995 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 acguisition 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, Ad,·). and Human Resources Committe,,,--..1 Page7 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 S.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, t \in. and Human Resources Commi, J Page 8 October 11 , 1995 After discussion on this item, it was moved, seconded and duly carried to recommend the Executive Committee approve staff's 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 DATES 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.MINIMFAHR10.95 .. Format D Written Report D Overheads 0 Slides 0 Flip Charts Originator~ Tom Dawes Department Head Sign Off ~ David Ludwin Anticipated Time ___ _ FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (6) Project No. 1: Project No. 2: Project No. 3: Summary AGENDA FOR NOVEMBER 8, 1995 Consideration of PDC95-36 -Consideration of motion authorizing staff to solicit proposals for Professional Planning, Design and Construction services for three projects, as follows: Engineering Services for Investigation and Repair of Ocean Outfalls Management of Peak Hydraulic Discharge Determination of Financial Charges It is proposed to begin work on these three separate projects, and to have the work completed under several Professional Services Agreements. Project No. 1 is the investigation, cleaning and repair of the Districts' ocean disposal system. As part of this project, the Districts will make permanent repairs to the outfall end gate on the operating 120-inch outfall which opened in January 1995 when record flow passed through the plant. Project No. 2 includes the determination of peak flows in the Districts' collection, treatment and disposal system and to examine ways to reduce the peaks and/or find alternate ways to discharge the treated wastewater flows culminating in an effort to delay or negate the need for a second deep ocean outfall. Project No. 3 will examine the Districts' existing Capital Facilities Connection Charge, annual Sanitary Sewer Use Charge and Excess Capacity Charge with a goal of obtaining the most equitable financial plan possible. Projects 2 and 3 will share common land use data and are planned to be completed as one project. Staff Recommendation Recommend that staff be authorized to request proposals on the three projects described above. J:\WPOOC\FINICRANBFPC.MTGIFAHR.95\ITEMIPOC95-36.WPO Format D Written Report D Overheads 0 Slides 0 Flip Charts Originator _____ _ Tom Dawes Department Head Sign Off _____ _ David Ludwin Anticipated Time _____ _ PLANNING, DESIGN AND CONSTRUCTION COMMITTEE MEETING PDC95-36: Project No. 1: Project No. 2: Project No. 3: Summary AGENDA FOR NOVEMBER 2, 1995 Consideration of motion authorizing staff to solicit proposals for Professional Planning, Design and Construction services for three projects, as follows: Engineering Services for Investigation and Repair of Ocean Outfalls Management of Peak Hydraulic Discharge Determination of Financial Charges It is proposed to begin work on these three, separate projects, and to have the work completed under several Professional Services Agreements. Project No. 1 is the investigation, cleaning and repair of the Districts' ocean disposal system. As part of this project, the Districts will make permanent repairs to the outfall end gate on the operating 120-inch outfall which opened in January 1995 when record flow passed through the plant. Project No. 2 includes the determination of peak flows in the Districts' collection, treatment and disposal system and examine ways to reduce the peaks and/or find alternate ways to discharge the treated wastewater flows culminating in an effort to delay or negate the need for a second deep ocean outfall. Project No. 3 will examine the Districts' existing Capital Facilities Connection Charge, annual Sanitary Sewer Use Charge and Excess Capacity Charge with a goal of obtaining the most equitable financial plan possible. Projects 2 and 3 will share common land use data and are planned to be completed as one project. Staff Recommendation Recommend that staff be authorized to request proposals on the three projects described above. J:\WPDOCIPDC95\NOVl95-36.WPD October 19, 1995 STAFF REPORT COUNTY SANITATION DISTRICTS of ORANGE COUNTY. CALIFORNIA 10844 ELLIS AVENUE P.O. BOX 9127 FOUNTAIN VALLEY, CALIFORNIA 92729-812:' 17141962-2411 PDC95-36: Approval of Request to Issue Proposals for Professional Services for Investigation and Repair of Ocean Outfalls, Management of Peak Hydraulic Discharge, and Determination of Financial Charges Summary Staff is proposing to begin work on three separate, but related projects. The first project is the investigation and rehabilitation of the Districts' two ocean outfalls. The second project will determine our peak hydraulic demand and ways to both reduce that peak demand and/or delay or eliminate the need for a second deep water ocean outfall. The third project will review our current methods for assessing charges for the collection, treatment and disposal services provided. Background The first project is the investigation, cleaning and repair of our ocean outfalls. We propose to hire a consultant to manage several related projects on both the operating 120-inch, 5-mile outfall and the older, standby 7,000-foot, 78-inch outfall. The project will include investigation of the condition of the interior and cleaning of the 120-inch outfall, cleaning plugged diffuser ports in both outfalls and making a permanent repair to the end gate on the 120-inch outfall. Much of the proposed work is Master Plan related, and the land use data necessary for the Management of Peak Hydraulic Discharge and Determination of Financial Charges is nearly identical. These reports could be part of a new Master Plan, which is needed; however, because we have not yet received the Federal and State issued Ocean Discharge Permit applied for in 1989, it is premature to do a full Master Plan. Our 1989 Master Plan, prepared in the 1987 -1989 period, calls for construction of significant facilities, such as a second deep water outfall, a project that could cost over $100 million. The high flows passed in January 1995 through the collection, treatment, and disposal facilities confirmed that we either have to start work soon on these facilities, or find other means to reduce or discharge the peak flow. Thus, starting the hydraulic portion of the Districts' Master Plan is timely. Concurrently, staff has been reviewing the three principle financial charges for sewer service, the one-time capital facilities connection charge ($2,350.00 per dwelling unit, $470.00 per 1,000 square feet for other uses, the excess capacity charge, and the annual sanitary sewer use charge. It is proposed to study revisions which could result in recommendations to better equate use with benefit, all on a neutral revenue change basis. Budget Staff estimates the total cost of the projects including Consultant, staff, repair, and overhead charges as follows: • • • Investigation, Repair of Existing Outfalls Management of Peak Hydraulic Discharge Financial Analysis $ 630,000 $1,150,000 $ 390,000 The Management of Peak Hydraulic Discharge will be an integral part of a new Master Plan. In 1989, the total cost of our 2020 Master Plan was approximately $4.5 million. The Districts believe the new Master Plan, which will include future volumes on treatment, reuse and support issues, plus compliance with CEQA and public participation, will cost approximately $3 million, including the $1,150,000 for Management of Peak Hydraulic Discharge. Staff Recommendation Authorize staff to proceed with the issuance of Request for Proposal for the three (3) projects described above. J:IWPDOC\ENG\MGRRPTS\SR11-01.95 .E2!!!!!! • Written Report •Overheads •Slldes • FllpCharts Anticipated Time FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR NOVEMBER 8, 1995 Gary Streed SM F AH R95-24: Consideration of motion extending early retirement incentive program provisions for all eligible employees: (a) Consideration of motion to recommend a Board Ordinance adopting the provisions of Government Code Section 31641.04 authorizing all eligible Districts' employees to receive two years additional service credit for retirement purposes. (b) Consideration that the Ordinance should specify that provisions of the Early Retirement Incentive Program would be effective January 1 through March 30, 1995, and that the total cost-savings of positions filled at a lower level or held vacant for a period of time shall exceed the total actuarial cost of the additional service credit granted and associated paid leave payoff costs. (c) Consideration that, for a period of five years, or until such time as the full actuarially determined cost is paid to OCERS, the Districts' Controller will conduct an annual post- audit to verify that the savings exceed the actuarial and associated costs attributable to the additional service credit, and report the findings of that audit to the Finance, Administration and Human Resources Committee. The first report will be presented during the fourth quarter of fiscal year 1996. Summary On March 8, 1995, the Boards adopted Resolution 95-19, which implemented the early retirement incentive provisions of Government Code Section 31641.04 for certain Maintenance Department employees. Five employees elected to participate in the program during the period March 1, 1995 through April 30, 1995, facilitating a major reorganization of the Department. The retirement incentive was again offered during the period May 1, 1995 through June 30, 1995. Two employees elected to participate at that time. Again, this resulted in an enhanced ability for us to bring about organizational change through accelerated attrition and promotion. At least five employees have currently expressed strong interest in early retirement. A significant benefit would once more be realized through the accelerated attrition and opportunity to introduce new perspectives should these individuals have an opportunity to exercise the early retirement option. Staff Recommendation That the Finance, Administration and Human Resources Committee approve the extension of the early retirement incentive program. J:IWPDOC\FINICRANEIFPC.MTGIFAHR.95\ITEMIFAHR95.24A November 2, 1995 STAFF REPORT EARLY RETIREMENT INCENTIVE PROGRAM DISCUSSION COUNTY SANITATION DISTRICTS of ORANGE COUNTY, CALIFORNIA 10844 ELLIS AVENUE P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 (714) 962-2411 On March 8, 1995, the Boards adopted Resolution 95-19, which implemented the early retirement incentive provisions of Government Code Section 31641. 04. This resolution allowed the addition of two years service credit to certain employees in the Maintenance Department otherwise eligible to retire who actually applied for retirement during the period March 1, 1995 through April 30, 1995. Five employees elected to participate in the program, allowing a major reorganization of the Maintenance Department to occur earlier than would have otherwise been possible. That reorganization has thus far resulted in a cost savings of $207,610 over a six month period, or almost double the initial estimate. The retirement incentive was again offered during the period May 1 through June 30, 1995. Two employees took advantage of that offer, which enhanced our ability to bring about organizational change through accelerated attrition and promotion. The cost savings to date attributable to these retirements is $45,662 due to one of the positions remaining vacant and the other being filled at a lower level. Staff continues to believe that District-wide encouragement of accelerated attrition will have a positive effect on the organizational change sought by the Boards and Districts' Management, and will provide a forceful means of achieving that objective. The potential effect of the early retirement incentive program on motivating organizational change, when coupled with other activities that are now occurring, is significant. While the clear cost savings associated with the earlier Maintenance Department reorganization may not be repeated, added cost, if any, will be mitigated by holding positions vacant for approximately six months subsequent to the retirement in addition to the increased organizational efficiencies that will result. At least five employees have currently expressed strong interest in early retirement. A significant benefit would once more be realized through the accelerated attrition and opportunity to introduce new perspectives should these individuals have an opportunity to exercise the early retirement option. FINANCE, ADMINISTRATION AND HUMAN RESOURCE COMMITTEE Page 2 November 2, 1995 STAFF RECOMMENDATION 1. Based on the above, staff recommends that the Finance, Administration and Human Resource Committee support a Board Ordinance adopting the provisions of Government Code Section 31641.04 authorizing all eligible Districts employees to receive two years additional service credit for retirement purposes. 2. The Ordinance should specify that provisions of the Early Retirement Incentive Program would be effective January 1 through March 30, 1995 and that the total cost savings of positions filled at a lower level or held vacant for a period of time shall exceed the total actuarial cost of the additional service credit granted and associated paid leave payoff costs. 3. For a period of five years, or until such time as the full actuarially determined cost is paid to OCERS, the Districts' Controller will conduct an annual postaudit to verify that the savings exceed the actuarial and associated costs attributable to the additional service credit, and report the findings of that audit to the Finance, Administration and Human Resource Committee. The first report will will be presented during the fourth quarter of FY '96. /gh Originator: Gary Hasenstab Format • Written Report • Overheads • Slides • Flip Charts FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR NOVEMBER 8, 1995 F AH R95-38: Consideration of motion authorizing selection of a consultant and a professional services agreement for a New Financial Information System, Phase Ill, Selection Process for Hardware and Software; and Phase IV, Implementation and Acceptance of the Selected Hardware and Software Solutions. Summary: In October 1994, the firm of Deloitte & Touche was selected to complete Phases I and II for the selection of a New Financial Information System. Last month the Committee approved the F.I.S. Request for Proposals and authorized staff to solicit proposals for professional consulting services to complete the project. Four proposals were received on Friday, October 28, 1995, to provide the requested services. The proposals are briefly summarized as: Ernst & Young, LLP A.E.F. Consulting Systems Intelligent Directions Consulting Kerry Consulting Group Staff Recommendation 830 880 TBD 598 $181,374 97,200 $95/hr. 58,263 Staff will continue to evaluate the proposals and references and will present a complete report and recommendation to select one of the firms at the meeting. J:IWPOOC\FINICRANEIFPC.MTGIFAHR.95\ITEMIFAHR95.38A ' " I Fonnat D Written Report D Overheads D Slides D Flip Charts Anticipated Time 10 mins. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR NOVEMBER 8, 1995 FAH R95-44: Consideration of Resolution No. 95-_, Revising Districts' Procedure for Settlement of Claims Made Against the Districts; Settlement of Claims Made by the Districts; Collection of Delinquent Accounts Owing to the Districts; Settlement of Civil or Administrative Actions; and Settlement of Worker's Compensation Actions; and repealing Resolution Nos. 93-13 and 90-89. Summary: The Directors have approved Resolutions in 1990 and 1993 which establish staff's authority to settle different types of claims by and against the Districts. The purposes of this proposed Resolution are to combine the existing authorities into one Resolution and to revise the dollar thresholds of the authority levels. The authority levels proposed will parallel those recently approved for purchases and other authority delegations in Resolution No. 95-62. A copy of the proposed resolution showing the changes and a copy of the revised resolution are attached. The changes which are summarized in Attachment "A" can be summarized as: • Increase settlement authority for the Claims Committee (General Manager, General Counsel, Director of Finance) from $25,000 to $50,000 for claims made against the Districts. • Increase staff (Director of Technical Services, Director of Finance, General Counsel) authority to settle claims made by the Districts against Industrial Waste Permittees from $25,000 to $50,000. • Increase term of payment schedules authorized by staff for Source Control Permittees from six months to twenty-four months. • Increase the authority of the Director of Finance from $2,500 to $5,000 to: (a) file a collection claim in Small Claims Court; (b) assign a claim to a collection agency; and (c) write off debts deemed uncollectible. i 1 J ' 1 • Increase the Claims Committee authority to settle Worker's Compensation claims from $10,000 to $25,000 exclusive of medical costs. Had the revised limit been in place for the past three years, the amounts written off by authority of level would have been: Finance Director After Collection Agency After Small Claims Court Collection Committee Boards of Directors Staff Recommendation 3 1 1 3 $1,485 10 $4,253 5 $2,300 $2,095 4 $10,336 3 $6,374 $6,746 1 $5,013 1 $6,748 $105,877 1 $67,771 Staff recommends approval of Resolution No. 95_, Revising Districts' Procedure for Settlement of Claims Made Against the Districts; Settlement of Claims Made by the Districts; Collection of Delinquent Accounts Owing to the Districts; Settlement of Civil or Administrative Actions; and Settlement of Worker's Compensation Actions. 2 J:IWPOOC\FINICRANE\FPC.MTGIFAHR.95\ITEMIFAHR95.44 ' ' ( FAHR95-44 STAFF AUTHORITY LEVELS Claims Made By or Against Districts November 1995 ATTACHMENT "A" :~•:::~,:, ' -. . . . .. ::-:. :,; •.. :-:· ., :-;, .. ,· ·,·,•-•:-:-:-,-.·7·"•:-:-:-·----:-·.:.:,:_:_:_:_:,:.:.:.:.:-·-·.·.: : 1;i1~Unsi .itt::i! [it}[Pr~Pd~e,.f':In Liability Claims Against CSD: Independent Administrator Gen'I. Mgr., Dir. Fin., Gen'I Counsel Debts Owed to CSD: Director of Finance After Collection Agency After Small Claims Court Gen'I. Mgr., Dir. Fin., Gen'I Counsel Industrial Waste Fees & Charges: Dir. Tech. Serv., Dir. Fin., Gen'I Counsel Deferred Payment Agreement Term Worker's Compensation Claims:* Independent Administrator Gen'I. Mgr., Dir. Fin., Gen'I Counsel *Excludes medical costs. J:IWPOOC\FIN\CRANBFPC.MTGIFAHR.95\ITEMIFAHR95.44 $ 1,000 25,000 $ 250 2,500 2,500 25,000 $25,000 6 Months $ 1,000 10,000 $ 5,000 50,000 $ 1,000 5,000 5,000 50,000 $ 50,000 24 Months $ 5,000 25,000 ' ~J ,.., RESOLUTION NO. 93 1 a 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, ADOPTING DISTRICT PROCEDURES FOR SETTLEMENT OF CLAIMS MADE AGAINST THE DISTRICTS; SETTLEMENT OF CLAIMS MADE BY THE DISTRICTS; COLLECTION OF DELINQUENT ACCOUNTS OWING TO THE DISTRICTS; SETTLEMENT OF CIVIL OR ADMINISTRATIVE EN. FORCEMENT A_ CTIONS; ~i,'Pf4§mtlif·'."-:~ -~RF;~_:·•-~i ' ~ ~•,•,.,;;,' 'w:<«~ N~ 0 ❖'• N.,~ ,. • J.[<11;'., . '. :Jl%/µ[Qfi~AND Rt:PEAL \,;J RE L TION NOi, 88-~;;:::,lf.... ,kwJ ''.'~ -., .. ,., .. ··n•A· < WHEREAS, claims for damages alleging personal injuries, l,_\lJU~~-!I including death, and Bmes~~ to real and personal property, are periodically made against the Districts; and WHEREAS, the Districts presently have no liability insurance in force, having previously determined to be self-insured; and, WHEREAS, the Districts have the need for the retention of claims administration services and legal counsel who shall be vested within certain limited authority to accomplish a favorable disposition of claims made against the Districts; and, WHEREAS, the Districts have occasion to seek recovery against persons or entities who have caused loss or damage to the Districts, who have been assessed fines, charges or special fees relating to their use of District facilities, or who have been 1 the subject of civil or administrative enforcement proceedings for violation of the Districts' Wastewater Discharge Regulations Ordinance; and, WHEREAS, in the course of conducting the business affairs of the Districts, certain accounts receivable or other obligations owing to the Districts become delinquent, and in fact, uncollectible; and, WHEREAS, cost efficiency relating to collection of delinquent accounts can be greatly improved by the adoption of certain policies relating to the collection of said t ~"'"j;&~ accoun s~h.~....&! ~~~,1•m~«iim~--tl~IJ1i!Hi~Jill~J:§l~~irall!li!!~illr~ll41 '1i.Qm;~ll9al.,t!ltf!-~B!i!ill\f.E~~lf:~l!ffi~1]~!i~1~{11lf.al~ ~1fflgatteL'f!1t~~•~am~1m1~a:1t~t~~IBIBm~J~rn~~-m mlGYJD~~~1rg:··-·-i~r;:~ e -~Jgr9~}t~~l!~i:1Rt[i1:~Sllll~~@~ mlill4§:,lflltlttlf;1&1'1:~~l'.~?~t!i.tl1~:1immi~lmli'!lt~lJ.fflt~ll~l1lltll1 lf~E:~B!tfl~lf~m-~llne1~E&\!~~,U!l1lli!t!~ml~~l1,111:m~~t~'/f!:;.BJ~~~~-- ltJ!!.tlllel,:1t!l.1l~lfilVaa11im:e1f!tl!l~t,:J.~it:!!lll!m\1'1ilitll1ll[iilit•B.ll1~ ~,1mm11~~~Jltllf@Ji-l!!l~:ilgm~~~!J~~}!'.IJJ.lffil:lifl~1~r•mfim~ml~]~ fJm1l1~1fJffiil:t~l!!~~liE€9i~BMt!fThil:~'gffie~!ltJrm1fl~~ll;B!~itl11if}~~i rffil ~-:«'<",!i.<;i;i:l>::«t·'¾WWX~t-:'~":::--·«:i.i:•:~f~XM"zi;= J¾rftEtJ&,#rtl til!tMfl~RUs· NOW, THEREFORE, 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 DETERMINE, RESOLVE AND ORDER: 2000-00028 17488_1 2 ARTICLE I SETTLEMENT OF LIABILITY CLAIMS MADE AGAINST DISTRICTS Section 1.1: A liability reserve has been established in tho amount of $500,000.00 for the payment of claims made against the Districts. Said amoun~ shall continue to be provided-faF in each annual budget to ensure that sufficient funds are on deposit to provide for payment of those amounts incurred as a liability loss or expense. Section 1.2: Each annual budget shall provide, in addition to the reserve established by Section 1.1, for the suffioientg('~R funds to provide a sufficient balance to meet projected expenses for loss and payment of claims during the ensuing fiscal year. Section 1.3: A claims administration firm is authorized to be retained, and said firm is hereby granted authorization to make payments and settlements of claims made against the Districts in an amount not to exceed $1,000.00!§!.~~m per claimant. Said firm shall be retained in accordance with the terms and conditions set forth in an agreement approved by the General Counsel. Section 1.4: A committee comprised of the General Manager or his designee, the Director of Finance and the General Counsel are authorized to review and make full settlement of any claims made against the Districts for contract or liability damages not otherwise covered by insurance by payment of a sum not to exceed$25,000.00 -_._ per claimant. In the event a claims results in litigation, which is being legally 2000-00028 17488_1 3 defended by other than the Districts' General Counsel, this committee shall review and provide the approval to the Districts' special legal counsel within the same limits. Section 1.5: All claims for damages resulting in a judgment or a recommended settlement by negotiation in an amount exceeding $26,000.00~~tq~pa per claimant, shall be submitted to and approved by the Board of Directors of the defendant District or the Joint Boards in the event of claims made against the Joint Districts. Section 1.6: The General Counsel is authorized to retain the services of special legal counsel for purposes of representing the Districts in the defense of any claim or matter of litigation, v.•herein he determine~Dl:..!Ull!:fl!IB that specialized expertise or experience is desirable, a conflict of interest exists or could arise with the office of General Counsel or that the workload of the office of General Counsel requires the utilization of special counsel. ARTICLE II COLLECTION OF DELINQUENT OBLIGATIONS OWING TO THE DISTRICTS Section 2.1: The Director of Finance is authorized to write off as an uncollectible debt any delinquent obligation owing to the Districts in excess of 90 days and not exceeding the sum of $250.0q§~ii'EM· Section 2.2: The Director of Finance, in his discretion, is authorized to assign for collection to a person or firm of his choosing, any delinquent obligation owing to the Districts in excess of 45 days and not exceeding the sum of $2,500.00!,ffi~ml~:t~l Ninety (90) days after assigning the obligation for collection, the Director of Finance is 2000-00028 17488_1 4 ' authorized to write off as an uncollectible debt, any portion of the obligation which is still outstanding. Section 2.3: The Director of Finance, in his discretion, is authorized to file the necessary proceedings in the Small Claims Court of the appropriate judicial district of the County of Orange in order to collect any delinquent obligation owing to the Districts in excess of 45 days and not exceeding the sum of $2,600.00§?~m~ or, v,1ith the eoneurrenee of General Counsel, not e*eeeding the sum of $5,000.00. Upon obtaining a judgment in favor of the Districts, the Director of Finance and General Counsel shall take all legal measures necessary to enforce the terms of the judgment. Ninety (90) days after receiving a final judgment in favor of the Districts, the Director of Finan~ Wl!l(ill1Elm)l1!.flil"llf-!! is authorized to write off as an uncollectible debt, any portion of the obligation which is still outstanding. Section 2.4: Notwithstanding the authority provided in Sections 2.2 and 2.3 above, any obligation owing to the Districts, not exceeding the sum of$26,000.00 mil9P.!~, may be compromised by acceptance of a sum lesser than the full amount due or may be written off as uncollectible, upon that determination being made, after investigation by a committee comprised of the General Manager, or his designee, General Counsel and Director of Finance. Section 2.5: The Director of Finance shall forward any delinquent obligation in excess of $25,000.00§IWull~t• to the General Counsel for the Districts, who shall submit his recommendation to the Boards of Directors as to the method of collection or disposition of said account. 2000-00028 17488_1 5 Section 2.6: In addition to the above authorization, the Director of Finance is directed to exercise all available lawful methods to ensure prompt and full recovery of all obligations owing to the Districts. Section 2. 7: The Director of Finance is authorized to offset against any sums held on deposit by the Districts on behalf of any person ~iil:\1)1 who owes a delinquent obligation to the Districts. Section 2.8: The Director of Finance is authorized to withhold the approval of any such permits otherwise to be issued by the Districts to any person Rf.i.llf-1 who has an outstanding debt obligation owing to the Districts until such time as said debt obligation is paid in full. Section 2.9: Delinquent obligations, as used in this Resolution, shall include any invoice submitted by the Districts for services rendered or for reimbursement of damages caused to District property or personnel, which has not been paid within (a) the time prescribed by the District ordinance or resolution; or (b) thirty (30)[q11fll~ll'J days, whichever is later, from the date of invoice. ARTICLE Ill COLLECTION OF FEES AND CHARGES RELATING TO INDUSTRIAL WASTE DISCHARGES Section 3.1: In the event of any fees or charges being owed by an Industrial \A.~aste Permittee up to the amount of $25,000.00, a oommittee comprised of tho Director of Finance, Director of Teohnical Servioes and General Counsel are authorized to negotiate and enter into, on behalf of the Distriots, a settlement agreement relating to 2000-00028 17488_1 6 .. ml~J!!BJ&EiJD~llliiJit~elf11t~il!~~1~m1 llllllllltl._~lillfJl~-•JDiQ~,r1JIEl!&fil!Wxl1ifl!Wltmll!I B.lllU!}~BJOim.lW~~IP~~!!ll~BB1llll-~1Jl•l~JBtIBB ffi.~~'lr.!il34n~ff!JlfiRm1fi~~--Q1~~qt§~~Qn~lrt.~~T~~ifl•~ ({.._<JC~~v.~,;,~:..........,..-.-.❖.« ...... -.v.-.-.. .. -.·.•····•··-.~:-.•.·.·••-·.,-............. ,-..-.·.-.v.·X·.v'~~!-.«'\❖,•,••••••• ~~._,.,,.,.,t.~=m:=~-~~~~-~ ~ Said agreement shall be based upon a showing of good cause and a reasonable dispute between the Districts and the Permittee, and can provide for acceptance of a sum lesse,: than the full amount claimed as due by the District. This agreement may be entered into prior to or during the pendingffi:~~ of any litigation action filed by the Districts to collect the amount owed. Section 3.2: Upon written request and establishment of good cause by an industrial waste permittee, the committee of the Director of Finance, Director of Technical Services and General Counsel may negotiate and enter into a deferred payment agreement with the permittee in accordance with the guidelines established herein. Said agreement may be incorporated as part ori or separate and in addition to} :,: :,.::. any enforcement compliance agreements authorized by the provisions of the Districts' Wastewater Discharge Regulations Ordinance. Section 3.2.1: The installment payment agreement shall be for a maximum term not to exceed si* (6)~~f:if¥19bii:m:il months. The agreement shall provide for payment of interest on the principal amount owing at a rate equal to !fli'.-111 i~'.@"l:il@Jlfl prime rate plus 2-1/2%. The prime rate shall be established as the rate set and in effect by Bani( of America, San Francisco, Galiforniaffil[~~~tti~~~t:fll ~•,t,•,·,·,·,•u.-.-:,:;,:-.>.-.,,,,~~x.x:::=::x::.,. .... ,., .•• {~~~,:)5-.... ❖.~ 2000-00028 17488_1 7 IBll;~gj, on the date of the agreement. The agreement shall provide for payment of all costs of preparing and administering the payment agreement, including legal and administrative costs. Section 3.2.2: The agreement shall stipulate the penalties to which the permittee shall be subjected in the event of nonpayment of any of the payments specified in the agreement, including initiation of legal action or permit li~iJSIB revocation, as recommended by the General Counsel ~~IEl2~:[f:~ltl!!~! Section 3.3: If the delinquent obligation is greater than $25,000.00ffl~I-• 9f-any compromise settlement or any deferred payment agreement shall be submitted to and approved by the Boards of Directors, who shall prescribe the terms and conditions. ARTICLE IV SETTLEMENT OF CIVIL ADMINISTRATIVE ENFORCEMENT ACTIONS Section 4.1: In the event that the Districts initiate or intend to initiate any civil or administrative enforcement actions based upon alleged violations of the Districts' Wastewater Discharge Regulations Ordinance, a committee comprised of the fflttAm.tt .==-.-.----·-·-·.-.-. .... ❖.-.;:,•.~ @~I~J.fii"fi Director of Technical Services, the Souroe Control Manager and the General Counsel are authorized to negotiate and enter into, on behalf of the Districts, a settlement agreement, which may include both payment to District in an amount up to $25,000.0D;lifiUQ@Q~-and enforcement compliance orders deemed appropriate to ensure compliance with the Wastewater Discharge Regulations Ordinance. This 2000-00028 17488_1 8 agreement may be entered into prior to or during the pending~im of any , ........ ,. •• ,.C¥.':.»."'-:-.•.-.· ... ,.-.•-·-•--9 administrative proceeding or litigation enforcement action. Section 4.2: The committee of the Qtt~'.fflqf~tif&ffloij~f; Director of Technical ·"h:::::::::::: ::_· -~ : ; :,:,:':· \~=-\r'r... ·(\:•,:,:•:••·\:,.I:.,~ Services, Source Control Manager and General Counsel may negotiate and enter into a settlement agreement which includes a schedule of payments over li!Rltta time In i"~~w,aa;~WiJ;f:61Jl21'.fi~d"~~~ by the person or entity which is the subiect of the ~~~~AWix:~?). .m.!l!xl.tlWl:;.~t J &~Dl-flmlltltll~-\f&C~i~Kllltt~.•. .,;!IDlmilllmfi!.J.fi[llfl.lllilll':· ::-'~:'.''.{' -=·:='.'''Y';""':-:··•:,,;,c--w:,::~,:•:-~,;:: .~?r:' ·.,~~--, -~:;aBill! 11a•t1••~ .. Bt!--1.•~1;e- section 4.3: If the proposed settlement involves ~hi payment 1[;1;§11!!,~l greater than $26,OOO.OO$5JU00011:0, the settlement shall be submitted for approval by • .. .;..,.;,;-;-;.:-:,:.;.........:·,:.:-:-;..v.,.;.,__ the Board of Directors of the involved District or the Joint Boards in the event of an enforcement action involving the Joint Districts. Uile.~I l!111i1:1:!11i1tt1111[~J11i:!1~~,•Is111ar;;;r:~~1;;r11,;;i;11!! ~Bal'1lfm~~@B;\l-tmt.:E®i1[l1B~,,ll~l~~tgn~1ll-t!~!ll!I !tlDs.•4,;r@;ID:~Dm~i-,B.qal1~-~~q-lll1ffitl!iifflBt~Smll!~i1U- 2000-00028 17488_1 9 B!Wffil§~-~,-!~R!ll'~l!lll~11ifB;[Ql~ami;ffilllfl!it!n[f.wmrt~,~rm l~lll~-m!l~~lf.P..,QJl~~FtlErftl~~tt!\11::flfil!l•re'.M!~ltil!B~~i!mR~,tl~ -ilmtS:[Emll!il.lll fa.mllt!lf;iffll{~-lltlfI•.tllllIEi~rlt~lll §!'.!!101~~~~!~11l~Jlrl"~tDIV?ltJ,i~,1liffilt§~atl[-!!1tl!'.!~Dl~filllll llllE,Eiamll(filD!Etl:~lJB1\li:m~~Q~(-~0lii•mmm"ltt B.!•il~\lllillll~al:alt.li~~~-!iil!illllrl-;IIU lll!Alll•:ll!Ul~,lDB&fl~§mEJlltl~~;~ll1tml~R flq~if:il:i}}i.~lifilirtlt;~l]IBD,1m~11ag~ -.11:111;~1m11~§!l~li:tl!iJmt121sti!1111~1-i!ilt!B.•~!lii.E.Wltl! i!~~:m ~::i'.m.g;:i1m~~l@lilitit9.IQB~§t.9:-WJ&'9D\ti~!i!!&9l~i,2i!mt6£ti«tl!!:«!B! IItll!i:~\!1£\ll!WJiPJii'•v.H.!llt.riliKgl!flt~J -·':ti~!@li\S.~ML .J~rte¥@0{]@1l~[m r,,1,t1!1!1~!ill11iiln11m111t~-~!IJtilt~-!lsl1EffiliiL~~;JJJlftjilt!lirtiR'.t@! ~,Jtlll}Jl,,!&~Jemllll:1IP!'!~~@,-f;m1til~~-8~8~!itllt!~Jm~~~m,~®i~m1'= i!lt!J!~t!l~!::mjn:::fflfft~~,111:::!:il~J!!~ii~l§~i 2000-00028 17488_1 10 Section 4:4il: +Rat-Resolution Nol. 88 s1 m mril 1@\@l§lt!tis hereby repealed and made of no further effect. Section 4.-e!:£ffl: This Resolution is effective immediately upon adoption. PASSED AND ADOPTED at a regular meeting held February 10, 4993 -------,-- 2000-00028 17488_1 11 __ ..... RESOLUTION NO. REVISING DISTRICTS PROCEDURE FOR SETTLEMENT OF CLAIMS MADE AGAINST THE DISTRICTS: SETTLEMENT OF CLAIMS MADE BY THE DISTRICTS; COLLECTION OF DELINQUENT ACCOUNTS OWING TO THE DISTRICTS; SETTLEMENT OF CIVIL OR ADMINISTRATIVE ACTIONS: AND SETTLEMENT OF WORKER1S COMPENSATION ACTIONS 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. ADOPTING DISTRICT PROCEDURES FOR SETTLEMENT OF CLAIMS MADE AGAINST THE DISTRICTS; SETTLEMENT OF CLAIMS MADE BY THE DISTRICTS; COLLECTION OF DELINQUENT ACCOUNTS OWING TO THE DISTRICTS; SETTLEMENT OF CIVIL OR ADMINISTRATIVE ENFORCEMENT ACTIONS; SETTLEMENT OF WORKER'S COMPENSATION ACTIONS; AND REPEALING RESOLUTION NOS. 93- 13 and 90-89 WHEREAS, claims for damages alleging personal injuries, bodily injuries, including death, and damages to real and personal property, are periodically made against the Districts; and WHEREAS, the Districts presently have no liability insurance in force, having previously determined to be self-insured; and, WHEREAS, the Districts have the need for the retention of claims administration services and legal counsel who shall be vested within certain limited authority to accomplish a favorable disposition of claims made against the Districts; and, WHEREAS, the Districts have occasion to seek recovery against persons or entities who have caused loss or damage to the Districts, who have been assessed fines, charges or special fees relating to their use of District facilities, or who have been the subject of civil or administrative enforcement proceedings for violation of the 1 Districts' Wastewater Discharge Regulations Ordinance; and, WHEREAS, in the course of conducting the business affairs of the Districts, certain accounts receivable or other obligations owing to the Districts become delinquent, and in fact, uncollectible; and, WHEREAS, cost efficiency relating to collection of delinquent accounts can be greatly improved by the adoption of certain policies relating to the collection of said accounts; and, WHEREAS, claims for Workers' Compensation damages alleging personal injuries, including death, are periodically made against the Districts; and, WHEREAS, the Districts presently have no Workers' Compensation insurance in force, having previously determined to be legally self-insured; and, WHEREAS, the Districts have retained a claims administration service firm and special legal counsel who shall be vested with certain limited authority to accomplish a favorable disposition of Workers' Compensation claims made against the Districts; and, WHEREAS, cost efficiency relating to resolution of Workers' Compensation claims can be greatly improved by the adoption of certain policies relating to the resolution of said claims. NOW, THEREFORE, 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 DETERMINE, RESOLVE AND ORDER: 2 ., ARTICLE I SETTLEMENT OF LIABILITY CLAIMS MADE AGAINST DISTRICTS Section 1.1: A liability reserve has been established for the payment of claims made against the Districts. Said reserve shall continue to be provided in each annual budget to ensure that sufficient funds are on deposit to provide for payment of those amounts incurred as a liability loss or expense. Section 1.2: Each annual budget shall provide, in addition to the reserve established by Section 1. 1, for the necessary funds to provide a sufficient balance to meet projected expenses for loss and payment of claims during the ensuing fiscal year. Section 1.3: A claims administration firm is authorized to be retained, and said firm is hereby granted authorization to make payments and settlements of claims made against the Districts in an amount not to exceed $5,000.00 per claimant. Said firm shall be retained in accordance with the terms and conditions set forth in an agreement approved by the General Counsel. Section 1.4: A committee comprised of the General Manager or his designee, the Director of Finance and the General Counsel are authorized to review and make full settlement of any claims made against the Districts for contract or liability damages not otherwise covered by insurance by payment of a sum not to exceed $50,000.00 per claimant. In the event a claim results in litigation, which is being legally defended by other than the Districts' General Counsel, this committee shall review and provide the approval to the Districts' special legal counsel within the same limits. Section 1.5: All claims for damages resulting in a judgment or a recommended 3 settlement by negotiation in an amount exceeding $50,000.00 per claimant, shall be submitted to and approved by the Board of Directors of the defendant District or the Joint Boards in the event of claims made against the Joint Districts. Section 1.6: The General Counsel is authorized to retain the services of special legal counsel for purposes of representing the Districts in the defense of any claim or matter of litigation, whenever it is determined that specialized expertise or experience is desirable, a conflict of interest exists or could arise with the office of General Counsel or that the workload of the office of General Counsel requires the utilization of special counsel. ARTICLE II COLLECTION OF DELINQUENT OBLIGATIONS OWING TO THE DISTRICTS Section 2.1: The Director of Finance is authorized to write off as an uncollectible debt any delinquent obligation owing to the Districts in excess of 90 days and not exceeding the sum of $1,000.00. Section 2.2: The Director of Finance, in his discretion, is authorized to assign for collection to a person or firm of his choosing, any delinquent obligation owing to the Districts in excess of 45 days and not exceeding the sum of $5,000.00. Ninety (90) days after assigning the obligation for collection, the Director of Finance is authorized to write off as an uncollectible debt, any portion of the obligation which is still outstanding. Section 2.3: The Director of Finance, in his discretion, is authorized to file the necessary proceedings in the Small Claims Court of the appropriate judicial district of the County of Orange in order to collect any delinquent obligation owing to the Districts 4 in excess of 45 days and not exceeding the sum of $5,000.00. Upon obtaining a judgment in favor of the Districts, the Director of Finance and General Counsel shall take all legal measures necessary to enforce the terms of the judgment. Ninety (90) days after receiving a final judgment in favor of the Districts, the Director of Finance, with the concurrence of General Counsel is authorized to write off as an uncollectible debt, any portion of the obligation which is still outstanding. Section 2.4: Notwithstanding the authority provided in Sections 2.2 and 2.3 above, any obligation owing to the Districts, not exceeding the sum of $50,000.00, may be compromised by acceptance of a sum less than the full amount due or may be written off as uncollectible, upon that determination being made, after investigation by a committee comprised of the General Manager, or his designee, General Counsel and Director of Finance. Section 2.5: The Director of Finance shall forward any delinquent obligation in excess of $50,000.00 to the General Counsel for the Districts, who shall submit his recommendation to the Boards of Directors as to the method of collection or disposition of said account. Section 2.6: In addition to the above authorization, the Director of Finance is directed to exercise all available lawful methods to ensure prompt and full recovery of all obligations owing to the Districts. Section 2.7: The Director of Finance is authorized to offset against any sums held on deposit by the Districts on behalf of any person or entity who owes a delinquent obligation to the Districts. Section 2. 8: The Director of Finance is authorized to withhold the approval of 5 any such permits otherwise to be issued by the Districts to any person or entity who has an outstanding debt obligation owing to the Districts until such time as said debt obligation is paid in full. Section 2.9: Delinquent obligations, as used in this Resolution, shall include any invoice submitted by the Districts for services rendered or for reimbursement of damages caused to District property or personnel, which has not been paid within (a) the time prescribed by the District ordinance or resolution; or (b) forty-five (45) days, whichever is later, from the date of invoice. ARTICLE Ill COLLECTION OF FEES AND CHARGES RELATING TO INDUSTRIAL WASTE DISCHARGES Section 3.1: In the event any fees or charges, up to the amount of $50,000.00, are owed by an Industrial Waste Permittee and are delinquent or in dispute between the Permittee and District, a committee comprised of the Director of Finance, Director of Technical Services and General Counsel are authorized to negotiate and enter into, on behalf of the Districts, a settlement agreement relating to the financial obligation owing to the Districts. This Section shall not apply to excess capacity charges, nor enforcement actions which are provided for in Article IV below. Said agreement shall be based upon a showing of good cause and a reasonable dispute between the Districts and the Permittee, and can provide for acceptance of a sum less than the full amount claimed as due by the District. This agreement may be entered into prior to or during the pendency of any litigation filed by the Districts to collect the amount owed. Section 3.2: Upon written request and establishment of good cause by an 6 industrial waste permittee, the committee of the Director of Finance, Director of Technical Services and General Counsel may negotiate and enter into a deferred payment agreement with the permittee in accordance with the guidelines established herein. Said agreement may be incorporated as part of, or separate and in addition to, any enforcement compliance agreements authorized by the provisions of the Districts' Wastewater Discharge Regulations Ordinance. Section 3.2.1: The installment payment agreement shall be for a maximum term not to exceed twenty-four (24) months. The agreement shall provide for payment of interest on the principal amount owing at a rate equal to the Federal Reserve Board prime rate plus 2-1/2%. The prime rate shall be established as the rate set and in effect by the Los Angeles Federal Reserve Bank, on the date of the agreement. The agreement shall provide for payment of all costs of preparing and administering the payment agreement, including legal and administrative costs. Section 3.2.2: The agreement shall stipulate the penalties to which the permittee shall be subjected in the event of nonpayment of any of the payments specified in the agreement, including initiation of legal action or permit suspension or revocation, as recommended by the General Counsel and the Director of Technical Services. Section 3.3: If the delinquent obligation is greater than $50,000.00, any compromise settlement or any deferred payment agreement shall be submitted to and approved by the Boards of Directors, who shall prescribe the terms and conditions. 7 ARTICLE IV SETTLEMENT OF CIVIL ADMINISTRATIVE ENFORCEMENT ACTIONS Section 4.1: In the event that the Districts initiate or intend to initiate any civil or administrative enforcement actions based upon alleged violations of the Districts' Wastewater Discharge Regulations Ordinance, a committee comprised of the Director of Finance, Director of Technical Services, and the General Counsel are authorized to negotiate and enter into, on behalf of the Districts, a settlement agreement, which may include both payment to District in an amount up to $50,000.00 and enforcement compliance orders deemed appropriate to ensure compliance with the Wastewater Discharge Regulations Ordinance. This agreement may be entered into prior to or during the pendency of any administrative proceeding or litigation enforcement action. Section 4.2: The committee of the Director of Finance, Director of Technical Services, and General Counsel may negotiate and enter into a settlement agreement which includes a schedule of payments over a period of time not to exceed twenty-four (24) months, by the person or entity which is the subject of the enforcement action. The agreement shall provide for payment of interest on the principal amount owing at a rate equal to the Federal Reserve Board prime rate plus 2-1/2%. The prime rate shall be established as the rate set and in effect by the Los Angeles Federal Reserve Bank on the date of the agreement. Section 4.3: If the proposed settlement involves the payment of an amount greater than $50,000.00, the settlement shall be submitted for approval by the Board of Directors of the involved District or the Joint Boards in the event of an enforcement 8 action involving the Joint Districts. ARTICLEV SETTLEMENT OF WORKERS' COMPENSATION CLAIMS MADE AGAINST THE DISTRICTS Section 5. 1. A minimum liability reserve has been established in the amount of $250,000.00 for the payment of claims made against the Districts. Said minimum amount shall continue to be provided for in each annual budget to ensure that sufficient funds are on deposit to provide for payment of those amounts incurred as a liability loss or expense; and Section 5.2. Each annual budget shall provide, in addition to the reserve established by Section 5. 1, for the sufficient funds to provide a sufficient balance to meet projected expenses for payment of claims during the ensuing fiscal year; and Section 5.3. A claims administration firm is authorized to be retained, and said firm is hereby granted authorization to make payments and settlements of claims made against the Districts in an amount not to exceed $5,000.00 per claimant. Said firm shall be retained in accordance with the terms and conditions set forth in an agreement approved by the General Counsel; and, Section 5.4. In addition to special legal counsel selected by the Districts' Workers' Compensation administrator, the General Counsel is authorized to retain the services of special legal counsel for purposes of representing the Districts in the defense of any Workers' Compensation claim, wherein he determines that specialized expertise is desirable or that the workload requires the utilization of outside counsel; and, 9 Section 5. 5. A committee comprised of the General Manager, or his assignee, Director of Finance and General Counsel are authorized to review and make full settlement of any Workers' Compensation claim made against the Districts by payment of a sum not to exceed $25,000.00 in addition to the actual medical expenses and temporary disability payments per claimant. In the event a claim results in litigation, which is being legally defended by other than the Districts' General Counsel, this committee shall review and provide the approval to the Districts' special legal counsel within the same limits; and, Section 5.6. All claims resulting in a recommended settlement by negotiation or stipulation in an amount exceeding $25,000.00 in addition to the actual medical expenses and temporary disability payments per claimant shall be submitted to and approved by the joint Boards of Directors. Section 5.7: Resolution Nos. 93-13 and 90-89 are hereby repealed and made of no further effect. Section 5.8: This Resolution is effective immediately upon adoption. PASSED AND ADOPTED at a regular meeting held _______ _ 10 Format D Written Report 0 Overheads • Slides 0 Flip Charts Anticipated Time 10 Mins. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR95-45: Summary: AGENDA FOR NOVEMBER 8, 1995 Consideration of motion to review, approve and file Joint Works Budget Reviews prepared by staff for the quarter ended September 30, 1995. Gary G. Streed, Finance Director, will present the Joint Works Budget reviews for the quarter ended September 30, 1995. Attached are summary statements of the Joint Works Operating Costs, the Joint Works Capital Improvement Program, and the costs of the workers' compensation, public liability and health plan self-insurance funds for the three months of fiscal year 1995-96 as well as some comparative graphics. With one quarter of the year gone, 22% of the net joint operating budget has been expended. Net costs are up $1,765,093 or 17.12%, compared with the same period last year. This is primarily due to salaries and wages, a decrease in labor charged to CORF projects, a change in the sulfide control program, and increased biosolids hauling costs. Small increases and decreases in other categories make up the balance. At the same time, flows have increased less than 1 %, resulting in an $80.65 per million gallons increase in the unit cost to treat and dispose of sewage, to $553.64 per million gallons, $73.66 below the approved budget. Joint Works construction projects for the first three months are lower than originally scheduled, running at 6% of the 1995-96 budget or $1.9 million. We continue to receive excellent bids on new projects, reflecting the slow economy. Several projects have recently been awarded and progress payments on these projects will increase CORF outlay over the remainder of the year. Overall, the self-funded insurance programs are operating within their budgets, although Public Liability Insurance legal fees exceed the first quarter estimates. Staff Recommendation Staff recommends that the Committee review, approve and file these reports. Summary reports for the Joint Works and the individual Districts will be considered by the full Boards of Directors at their next meeting. J:IWPDOCIFINICRANEIFPC.MTGIFAHR.95\ITEMIFAHRBS.45 November 8, 1995 FAHR95-45: STAFF REPORT Summary Financial Report for Three Months Ended September 30, 1995 Transmitted herewith is the Summary Financial Report for three months ended September 30, 1995. The statements summarize the fiscal activities of the joint operations. JOINT OPERATING The Joint Operating fund accounts for operations, maintenance, and administrative activities relative to the Districts' jointly-owned treatment and disposal facilities. The JO expenditures along with the self-funded insurance program costs are monitored by the Finance, Administration and Human Resources Committee and if some unexpected expenditures are experienced, they are reviewed by the Committee. Salaries and Wages -Approximately 12% of authorized positions were unfilled during the quarter and, thus, some minor payroll savings have been realized to date as expenses are 21. 79% of the budget. These positions will not be filled until necessary, but the vacancy rate is expected to decline in the balance of the year. Employees' Benefits -Includes Retirement, Workers' Compensation, Unemployment Insurance, Group Medical Insurance and Uniforms. Chargebacks to Districts and CORF -Payroll expenses are charged back to CORF through the cost accounting system for work on the treatment plants' capital expansion program, and to individual Districts for work on Districts' collection facilities capital expansion projects as well as maintenance and repair of said systems. Source Control Division charges to respective Districts are also included in these chargebacks. The decrease in this category reflects our reduced capital improvement program for 1995-96. Gasoline, Oil & Fuel -Includes all fuel for motor pool. A large portion is recovered through our equipment billing system and included in revenue below. Insurance -Budget amount includes Board and staff out-of-county travel policy, employee fidelity, boiler, fire, earthquake and all risk insurance policies, and pro-rata cost of the self- funded liability insurance program. Expense is in line with increased annual budget. Memberships -Includes the cost of membership in CASA, AMSA, SARFPA, WateReuse and other organizations. Annual membership costs are recorded when paid. CSDOC D P.O. Box 8127 • Fountain Valley, CA 92728-8127 • Tel. (714) 962-2411 D FAX (714) 962-3954 FAHR95-45 Page2 November 8, 1995 Office Expense -This account includes various types of office supplies, postage, stationery, computer supplies and related items. Odor Control Chemicals -Primarily for influent and sludge odor control at treatment plant sites. The main chemicals used to control odors are hydrogen peroxide and ferrous chloride. Ferric chloride is used as a supplemental odor control chemical, and caustic soda is also used in air scrubbers throughout the plants to reduce hydrogen sulfide emissions. Use of chlorine has essentially been eliminated at the plants. Chemical Coagulants -Expenditures for this item are required to dewater our sludges prior to disposal to comply with Regional Water Quality Control Board requirements. Other Operating Supplies -Miscellaneous items such as solvents, cleaners, janitorial, tools, lab chemicals, etc., purchased throughout the year. Contractual Services -The major elements in this line item are payment for grit removal and disposal and payment for removal and off-site beneficial reuse of biosolids or sludge. These expenses which are a significant part of our total costs are right at the budget projections. Professional Services -Primarily consists of General Counsel's fees, other legal services, audit fees, and miscellaneous consulting services. The decrease from 1994-95 reflects the Ernst & Young costs of that year. Printing and Publications -Includes all reproduction activities in-house, including copier rental, and with outside services and recruitment advertising. Eguipment Rental Outside Equipment Rental -Primarily for the rental of large cranes and equipment necessary for removing and replacing major pumps, engines and other large equipment during the course of maintenance and repair operations. CSDOC Eguipment Rental -Reflects the charges for District-owned equipment used for overhead type activities. All equipment use is charged to the appropriate work order and fund through the cost accounting system. Repairs and Maintenance -This item includes parts and supplies for repair of plant facilities. Escalating costs continue to have an impact on this item. Generally, this account runs close to budget by year-end due to the unpredictability of major equipment failures. FAHR95-45 Page 3 November 8, 1995 Research and Monitoring -Budget includes funds for the ocean monitoring contract required by our NPDES permit. Other projects include operational research and evaluation of processes to develop optimum operating parameters, and also include the Districts' annual share of participation in the Southern California Coastal Water Research Project. Travel, Meetings & Training -Major items are authorized by specific Board actions. Expanding activities of regulatory agencies and the Clean Water Act reauthorization have required additional staff and Board travel. Increased training is a focal point of this year's budget and our annual goals. These costs are reviewed separately by the Finance, Administration and Human Resources Committee. Utilities -The major item in the Utilities Expense Account is for natural gas purchased for central power generation. Some power is still purchased for parts of the plants not served by central generation. Total utilities expenses are in line with the budget, and are down $330,877 from last year. Other Expenses -For items not chargeable elsewhere such as freight, safety supplies, grounds maintenance supplies, etc. Prior Year's Expense -This account is required by the Uniform Accounting System and represents adjustments to an operating or non-operating account balance from the previous year or payment of charges which could not be accrued at year end. Generally, all expenses to this account are recorded in the first quarter. Allocation to Districts and CORF -This is an account established in connection with the cost accounting system and represents materials, supplies and services, overhead chargebacks to the individual Districts and CORF. CAPITAL OUTLAY REVOLVING FUND This fund accounts for the costs of expanding and improving the Districts' jointly-owned treatment and disposal facilities and represents an average of 22% (excluding reserves) of each Districts' budget requirements for 1995-96. During the first quarter, $1. 9 million was expended on joint works treatment and disposal facilities improvement and expansion projects. The 1995-96 budget is $33.5 million. The pro-rata share of joint works improvements and expansion costs is reflected in the financial statements of the respective Districts. GGS:lc J:\WPDOCIFIN\CRANE\FPC.MTGIFAHR.95\STAFF.RPn5RFAHR95.45 10/30/95 1 . Net Salaries, Wages & Benefits 2. Odor Control & Chemical Coagulants 3. Contractual Services 4. Professional Services 5. Equipment Charges. 6. Repair & Maintenance Materials & Services. 7. Research & Monitoring. 8. Utilities. 9. Other Materials, Supplies & Outside Services. 10. Total Joint Operating Expenses 11. Revenues & Offsets. 12. NET JOINT OPERATING EXPENSE 13. Gallonage Flow (MG) 14. Gallonage Flow (MGD) 15. Gallonage Charge ($'s/MG) FPCR1294.XLS 5:28 PM JOINT OPERATING FUND BUDGET REVIEW & SUMMARY COMPARISON OF BUDGETED & ACTUAL EXPENDITURES FISCAL YEAR TO DATE 1995-96 (A) (Bl (Cl (D) (E) Budget Expenditures Expenditures Increase % Increase 1995-96 through through or (Decrease) 9/30/95 9/30/94 (Decrease) $28,667,000 $7,498,652 $5,930,738 $1,567,914 26.44 % 5,363,500 733,664 638,950 94,714 14.82 % 7,269,500 1,631,781 1,343,911 287,870 21.42 % 1,512,600 321,803 400,434 (78,631) (19.64)% 235,700 56,936 61,460 (4,524) (7.36)% 4,209,900 841,028 959,624 (118,596) (12.36)% 3,095,000 338,480 619,117 (280,637) (45.33)% 3,375,500 567,467 693,314 (125,847) (18.15)% 4,451 ,300 825,912 771,272 54,640 7.08 % $58,180,000 $12,815,723 $11,418,820 $1,396,903 12.23 % (3,800,000) (742,099) (1,110,289) (368,190) (33.16)% $54,380,000 $12,073,624 $10,308,531 $1,765,093 17.12% 86,688.61 21,807.71 21,794.23 13.48 0.06 % 236.85 237.04 236.89 0.15 0.06 % $627.30 $553.64 $472.99 $80.65 17.05 % (Fl (GI % Budget Remaining Realized Budget 26.16 % $21,168,348 13.68 % 4,629,836 22.45 % 5,637,7H 21.27 % 1,190,797 24.16 % 178,764 19.98 % 3,368,872 10.94 % 2,756,520 16.81 % 2,808,033 18.55 % 3,625,388 22.03 % $45,364,277 ) 19.53 % (3,057,901 I 22.20 % $42,306,376 I 25.16 % 10/30/95 JOINT OPERATING FUND & WORKING CAPITAL FUND SUMMARY BUDGET REVIEW DESCRIPTION SALARIES, WAGES, & BENEFITS 1 SALARIES & WAGES 2 EMPLOYEE BENEFITS: 3 RETIREMENT 4 WORKERS COMP 5 UNEMPLOYMENT INS 6 GROUP INSURANCE 7 UNIFORM RENT AL 8 TOT AL BENEFITS 9 SALARIES, WAGES, & BENEFITS 10 W.0. SALARIES & BEN. ALLOC.: 11 DIRECT CHARGES-CORF/DIST 12 COST ALLOC-CORF/DIST 13 W.O. SALARIES & BENEFITS 14 NET J.O. PAYROLL MATERIALS, SUPPLIES, & SERVICE 15 GASOLINE, DIESEL & OIL 16 INSURANCE 17 MEMBERSHIPS 18 OFFICE EXPENSE -SUPPLIES 19 OFFICE AUTOMATION 20 OFFICE EXPENSE -OTHER 21 OPERATING SUPPLIES: 22 ODOR CONTROL CHEMICALS 23 SULFIDE CONTROL CHEMICALS 24 CHEMICAL COAGULENTS 25 LAB CHEMICALS & SUPPLIES 26 TOOLS 27 SOLV, PAINTS, & JAN. SUPPLIES 28 OTHER OPERATING SUPPLIES 29 CONTRACTUAL SERVICES: s 30 GROUNDSKEEPING & JANITORIAI. 31 OUTSIDE LAB SERVICES 32 SOLIDS REMOVAL 33 OTHER WASTE DISPOSAL 34 OXYGEN PLANT OPER & MTCE 35 OTHER CONTRACTUAL SERVICES 36 PROFESSIONAL SERVICES: 37 LEGAL SERVICES 38 AUDIT & ACCOUNTING 39 ENGINEERING 40 OTHER PROFESSIONAL SERVICES BUDGET 1994-95 30,758,000 2,507,000 225,000 75,000 3,553,000 100,000 6,460,000 37,218,000 (7,000,000) (3,400,000) (] 0,400,000) 26,818,000 175,000 1,200,000 58,000 170,000 150,000 115,000 1,460,000 1,120,000 1,145,000 525,000 112,000 170,000 200,000 250,000 85,000 5,525,000 100,000 490,000 375,000 600,000 90,000 64,000 400,000 3 MONTHS ENDED 9-30-95 EXP THRU 9-30-94 6,905,566 559,465 60,579 9,827 885,414 16,776 1,532,061 8,437,627 (1,519,341) (987,548) BUDGET 1995-96 32,283,000 3,077,000 225,000 75,000 4,207,000 100,000 7,684,000 39,967,000 !2 EXP THRU 9-30-95 7,035,264 679,114 51,931 4,064 896,804 12,718 L,644,631 8,619,895 (6,875,000) (1,001,549) (4,425.000) (179,694) (2,S06,8&9) (11,300,000) (1,1 81 243) 5,930,738 28,667,000 7,498,652 46,620 175,000 29,353 302,091 1,250,000 363,707 25,811 58,000 28,400 16,900 203,100 28,286 8,437 157,500 30,347 13,752 102,300 18,000 256,293 2,103,500 245,769 84,314 1,715,000 246,097 298,343 1,545,000 241,798 70,760 509,000 85,109 17,723 125,400 24,439 33,252 146,000 27,842 43,212 207,500 51,780 37,354 213,000 21,705 4,505 150,000 9,364 1,099,112 5,425,000 1,373,753 282 140,000 13,009 124,516 510,000 127,764 78,142 831,500 86,186 159,208 600,000 187,414 38,598 70,000 15,844 0 289,000 27,797 202,628 553,600 90,748 FPC1294AXLS-10/30/95-5:26 PM ~ f %EXP THRU REMAINING 9-30-95 BUDGET 21.79 25 247,736 22.07 2,397,886 23.08 173,069 5.42 70,936 21.32 3,310,196 12.72 87,282 21.40 6,039,369 21.72 31,287,105 14.57 (5,873,451) 4.06 (4,245,306) 10.45 (10,118,757) 26.16 21,168,348 16.77 145,647 29.10 886,293 48.97 29,600 13.93 174,814 19.27 127,153 17.60 84,300 11.68 1,857,731 14.35 1,468,903 15.65 1,303,202 16.72 423,891 19.49 100,961 19.07 118,158 24.95 155,720 10.19 191,295 6.24 140,636 25.32 4,051,247 9.29 126,991 25.05 382,236 10.37 745,314 31.24 412,586 22.63 54,156 9.62 261,203 16.39 462,852 Q INCR (DECR) $ 129,698 119,649 (8,648) (5,763) 11,390 (4,058) 112,570 242,268 (517,792) (807,854) (1,325,646) L.567;914 (17,267) 61,616 2,589 11,386 21,910 4,248 (10,524) 161,783 (56,545) 14,349 6,716 (5,410) 8,568 (15,649) 4,859 274,641 12,727 3,248 8,044 28,206 (22,754) 27,797 (111,880) PAGE! !:! INCR (DECR) % 1.88 21.39 (14.28) (58.64) 1.29 (24.19) 7.35 2.87 (34.08) (81.80) (S2.88) 26.44 (37.04) 20.40 10.03 67.37 259.69 30.89 (4.11) 191.88 (18.95) 20.28 37.89 (16.27) 19.83 (41.89) 107.86 24.99 4,513.12 2.61 10.29 17.72 (58.95) 100.00 (55.21) 10/30/95 PAGE2 JOINT OPERATING FUND & WORKING CAPITAL FUND SUMMARY BUDGET REVIEW 3 MONTHS ENDED 9-30-95 A _e_ ~ !! & .E Q .!:! EXP EXP %EXP INCR INCR BUDGET THRU BUDGET THRU THRU REMAINING (DECR) (DECR) DESCRIPTION 1994-95 9-30-94 1995-96 9-30-95 9-30-95 BUDGET $ % 41 PRINTING & PUBLICATION: 42 REPRODUCTION-IN-HOUSE 210,000 46,923 219,100 22,367 10.21 196,733 (24,556) (52.33) 43 PRINTING-OUTSIDE 50,000 1,888 60,500 3,664 6.06 56,836 1,776 94.07 44 PHOTO PROCESSING 35,000 6,406 32,700 5,834 17.84 26,866 (572) (8.93) 45 NOTICES & ADS 35,000 4,734 29,500 10,847 36.77 18,653 6,113 129.13 46 RENTS & LEASES: 47 OlJfSIDE EQUIPMENT RENT AL 90,000 25,295 109,000 33,712 30.93 75,288 8,417 33.28 48 DISTRICT EQUIPMENT RENTAL 125,000 36,165 126,700 23,224 18.33 103,476 (12,941) (35.78) 49 REPAIRS & MAINTENANCE: 50 MATERIALS 3,200,000 758,986 3,375,900 625,349 18.52 2,750,551 (133,637) (l 7.61) 51 SERVICE CONTRACTS 475,000 200,638 834,000 215,679 25.86 618,321 15,041 7.50 52 RESEARCH & MONITORING: 53 ENVIRONMENT AL MONITORING 2,400,000 425,019 2,375,000 288,335 12.14 2,086,665 (136,684) (32.16) 54 AIR QUALITY MONITORING 200,000 75,000 155,000 0 0.00 155,000 (75,000) (100.00) 55 RESEARCH 450,000 119,098 565,000 50,145 8.88 514,855 (68,953) (57.90) 56 TRAVEL & MEETINGS 250,000 21,928 134,000 70,173 52.37 63,827 48,245 220.02 57 TRAINING 0 0 513,500 20,080 3.91 493,420 20,080 100.00 58 UNCOLLECTABLEACCOUNTS 25,000 0 15,000 131 0.87 14,869 131 100.00 59 UTILITIES: 60 DIESEL FOR EMERG GENERATOR! 95,000 5,964 25,000 0 0.00 25,000 (5,964) (100.00) 61 POWER 1,100,000 220,298 1,075,000 204,998 19.07 870,002 (15,300) (6.95) 62 NATURAL GAS 2,030,000 302,810 1,400,000 245,545 17.54 1,154,455 (57,265) (18.91) 63 TELEPHONE 140,000 7,784 125,500 26,512 21.13 98,988 18,728 240.60 64 WATER 550,000 156,458 750,000 90,412 12.05 659,588 (66,046) (42.21) 65 OTHER EXPENSES: 66 FREIGHT 75,000 9,061 79,700 10,317 12.94 69,383 1,256 13.86 67 GENERAi, 600,000 132,976 539,000 72,451 13.44 466,549 (60,525) (45.52) 68 AQMD OPERATING FEES 225,000 58,893 250,000 36,078 14.43 213,922 (22,815) (38.74) 69 PRIOR YEARS EXPENSE 25,000 0 20,000 0 0.00 20,000 0 0.00 70 OTHER NON-OPER EXPENSE 60,000 18,948 94,500 14,837 15.70 79,663 (4,111) (21.70) 71 TOTALMATLS, SUPP, & SERV 27,024,000 5,597,125 29,983,000 5,445,201 18.16 24,537,799 (151,924) (2.71) 72 COST ALLOC-CORF & OTHER (600,000) (109,043) (470,000) (128,130) 27.26 (34l,870) 19,087 17.50 73 NET J.O.-MATLS, SUPP, & SERV. 26,424,000 5,488,082 29,513,000 5,317,071 18.02 24,195,929 (171 ,011) (3.12) 74 TOTALJ. 0. REQUIREMENTS 53,242,000 LJ,418.820 58,180.000 12,815,723 22.03 45,364,277 1,396,903 12.23 75 REVENUE (3,700,000) (l, l l 0,289) (3,800,000) (742,099) 19.53 (3,057,901) (368 190) (33.16) 76 NET J.O. EXPENDITURES 49,542,000 10,308,531 54,380,000 12,073,624 22.20 42,306,376 1,765,093 17.12 FPC1294AXLS-!0/30/95-5:26 PM 10/27/95 CSDOC JOINT OPERATING WORK ORDER SUMMARY 3 MONTHS ENDED 9/30/95 3 Months 3 Months 3 Months $ Ended Ended Ended INCR/(DECR) % INCR/(DECR) Sep-93 Sep-94 Sep-95 FROM PR. YEAR FROM PR. YEAR COLL, DIVER. & INTERPLANT 16,457 31,152 40,448 9,296 29.84% HEADWORKS 483,998 465,642 342,677 (122,965) (26.41 %) PRIMARY TREATMENT 1,494,569 1,061,307 1,811,356 750,049 70.67% SECONDARY TREATMENT 650,907 643,797 873,998 230,201 35.76% SOLIDS HANDLING 1,990,619 1,698,003 1,730,375 32,372 1.91 % EFFLUENT CHLORINATION 34,701 5,645 44,464 38,819 687.67% EFFLUENT DISPOSAL 180,578 128,954 199,177 70,223 54.46% SUPERVISORY CONTROL 563,273 554,155 809,968 255,813 46.16% UTILITY SYSTEMS 997,674 1,156,657 1,330,879 174,222 15.06% GENERAL PLANT COMPLEX 1,368,985 1,398,738 1,175,271 (223,467) (15.98%) ODOR CONTROL 889,652 839,474 747,717 (91,757) (10.93%) GENERAL ENGINEERING 32,335 77,314 133,347 56,033 72.47% INDUSTRIAL WASTE 207,048 153,867 231,728 77,861 50.60% LA BORA TORIES & RESEARCH 1,782,177 1,923,187 2,474,208 551,021 28.65% MOTOR POOL NET CHARGES 67,860 77,576 40,204 (37,372) (48.17%) ELECTRIC CARTS 33,059 32,779 31,693 (1,086) (3.31%) PORT ABLE EQUIPMENT 52,411 60,284 56,114 (4,170) (6.92%) TOTALJ.O. EXPENSE 10,846,303 10,308,531 12,073,624 1,765,093 17.12% WOSU995AXLS-3:05 PM 10/27/95 = CII >-0 C. E w CII E j:: ::::, u. * County Sanitation Districts Staffing Trends 750 .---------------,--------------.---------------.--------------, 730 _, 710 690 -------------------------~--------------------------•--------------------------r-------------------------1 I I , ' I I I I I I I' _________________________ J ____________ ~-------------l __________________________ L ________________________ _ I I I I I I I I I I I I I ----------------~------~--------------------------:--------------------------: -------------------------- 1 I I I I I 670t _____________ :---------------------{ -----------~--------------r . . ~ 650 630 I I I -------------------------~--------------------------1-------~------------------~-------------------------1 I l I I I -------•·-•--------------~--------------------------~--------------------------L -------------------------1 I I I I 610 ~ ------. --------11 -_____________________ I _________ . I I ---------------, ------------------------- ' I I I I 590 -------------------------~--------------------------,--------------------------r------------------------ 1 ' I I I I I 570 + ---------------.------------,---------------------------• -----· ---------------------r -----·-------------------- I I I I 550 +-----------------------------+-------------+-------------~ 6/30/92 6/30/93 6/30/94 6/30/95 9/30/95 !-+-Authorized ---Actual I 2:09 PM _) J 10/27/95 en C .2 ii C) C ~ :i * County Sanitation Districts Total Flows Year to Date 22,000 ~------------.-------------.-----------r------------, 1 ' 21,800 -----------------------~-----------------------~-----------------------•----------------.. 21,600 I I t I I I I ,1 .. ----·--------------------I -, _ __. --------•-;----.I. --------· ---·----- I I I I I L I I ---~----------------------- 1 I 21,400 + -----------------------+ ------------------------, -----------------------,-----------------,------- I I I 21 ,200 -+ • ----------------------------~-----------------------1 21,000 20,800 20,600 ----------------... -J ---------------· I I ' -----------------------y--------------------- ' I I I ---------------,---------------------- 1 I I I -------------------'------------------------ ' ~ -------~ --------------,----------------------- I I I 2Q,4QQ + · -· ---• --, --,_ -----------i ---• ----" -------------• -4 • -----------• • --------· * I • • -----------• -• ------- I I I 20,200 20,000 I I I I I I I I -. I -1 -------------------------- 1 I I I I --------------------•--1·-----------------------1-----------------------r ----------------------- 1 I I I I I I 19,800 1---------------+------------+-----------+-----------_J Sep-91 Sep-92 Sep-93 Sep-94 Sep-95 Quarter Ended 2:03 PM 10/27/95 • 0 C .2 iii C, C ~ .§ e? .!! 0 C County Sanitation Districts Joint Operating Costs Per Million Gallons $800 I I I I I I $750 ~-----------------------~------------------------~-----------------------~----------------------- $700 $650 $600 $550 $500 $450 $400 $350 ' I I : ·-----------... ------------~ -------~ --------------~ --: ---------.... ~ ----.-~ ------~ ------------------------ I 1 I I -----------------------~------------------------~-----------------------~------------------------1 I I I I t ' _, ________________________ J ________________________ ~ _______________________ ~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ,:: ~rget I I -----------------------~------------------------~--------------1 + -------------~ ---• - I -----------------------~------------------------~-----------------------~------------------------1 I , I I I f I I ---------------------J ------------------------L -----------------------I -------------------------I I I I I I 1 t I I -----------------------,------------------------r-----------------------,------------------------ 1 ' I I I $300 1991-92 1992-93 1993-94 1994-95 1995-96 I -+-9/30 Cost/mg -a-6/30 Cost/mg I 2:43 PM A. Reclamation Plant 1 New and Rebudgeted Major Projects: 1 . Electrification or Pump Drives, P 1-36-1 2. Secondary Treatment Expansion to 80 MGD. Pl-36-2 3. Primary Treatment 72 MGD Expansion, Pl-37 4. Security & Landscaping. Pl-38-1 5. Misc. Mods. Priority Elements Pl-38-2 6. Misc. Modifications to Plant 1, Pl-38-4 7. Fire Protection, Signs and Water Sys Mods., Pl-38-5 8. Elect!. Facility Modifns & Safety Upgrades ,Pl-40-1 9. Fae Modilns & Safety Upgrades, Pl-40-2 10. Prim Clarifiers 3,4 & 5 Rehab. Pl-41 11 . Seimic Retrofit ol Non-Structure Systems. Pl-43 12. Seismic Retrofit Structual Items, Pl-44-1,2,3 13. Chemical and Wastehauler Facility Modifns. Pl-46-2,3 14. 12KV Distribution System for Support Facilities, Pl-47 15. Misc Architectural & Treatment Pit lmprvmts, Pl-48 16. 40 MGD Oxygen Activated Sludge & DAF's 17. Belt Presses 14 Units) 1 B. Solids Storage 14 Bins! 19. Digesters: 2 @ 11 O' Diameter 20. 12kv Electrical Power Distribution 21. Emergency Sewage Bypass System 22. Remove Trickling FIiters 1 & 3 23. Miscellaneous Special Projects Pint. 1, Pl-49 24. Misc. Job Plan Projects (See Schedule C) 25. Other Master Plan Projects a. Headworks No. 1 Rebuild, 2003 b. Headworks No.2 Impeller/Pump Speed, 2016 c. Remove Trickling Filters 2 & 4, 2007 d. 40 Mgd Oxygen Act'd Sludge &DAF, 2017 e. 110' ft Digesters, 2003 & 2012 f. 4 Belt Presses, 2004 g. 12 KV Power Distribution, 2001-2012 h. Standby Power Generation, 2005 & 2015 i. 72 Mgd Primary Treatment. 2004 & 2012 SUB-TOT AL -RECLAMATION PLANT 1 CAPITAL OUTLAY REVOLVING FUND SUMMARY OF JOINT WORKS CONSTRUCTION REQUIREMENTS FISCAL YEAR 1995-96 3 MONTHS ENDED 9/30/95 11) (21 WORK REVISED TOT AL REQUIRED ACCUMULATE ORDER PROJECT EST BUDGET COST 1995-96 1995-96 @ 6/30/95 53717-A 1,700,000 50,000 1,066,911 53717-B 47,000,000 6,500,000 118,137 53719-0 38,125,000 1,000,000 166,613 52108-F 1,510,000 10,000 1,573,145 52108-G 4,810,000 10,000 5,007,980 52108-H 2,550,000 50,000 1,927,039 52108-J 3,060,000 900,000 463,663 52187-A 8,625,000 133,378 52187-B 2,025,000 500,000 288,370 52199-A 2,350,000 1,000,000 251,454 52229-A 4,250,000 117,194 52125-8 4,250,000 100,000 922,135 52239-A 3,020,000 401,018 52255-0 2,650,000 400,000 141,956 52268-0 835,000 400,000 107,345 65,463,000 14,300,000 10,177,000 9,100,000 2,477,000 1,922,000 1,300,000 4,385,000 50,000 22,125,000 500,000 66,054 14,950,000 2,600,000 1,300,000 34,000,000 18,200,000 10,920,000 1,099,000 4,914,000 32,500,000 378,492,000 11,470,000 12,752,392 (3) 121 + 131 CURRENT FY PROJECT OUTLAY COST TO 9/30/95 TO DATE 249,846 1,316,757 37,695 155,832 (265) 166,348 49,617 1,622,762 85,780 5,093,760 192,724 2,119,763 (1,185) 462.478 1,207 134,585 7,326 295,696 6,379 257,833 117,194 179 922,314 7,980 408,998 3,965 145,921 355 107,700 40,541 106,595 682,144 13,434,536 PROJECT SUMMARY Page 1 of 4 Prepared By: Bill Aldridge 11) · 13) MEMO UNEXPENDED COMPLETED JOBS BUDGET TRANSFER TO FIXED ASSETS (199,846) 6,462,305 1,000,265 (39,617) (75,780) (142,724) 901,185 (1,207) 492,674 993.621 0 99,821 (155,198) (7,980) 396,035 399,645 50,000 459,459 0 10,787,856 (155,198) B. Plant 2 New and Rebudgeted Major Projects: I. Support Facilities and Site Improvements a. Operations Building, P2-23-5-1 b. Warehouse Building, P2-35-2 c. Maintenance Building • P2-35-3 d. Phase II Site & Security Imp., P2-35-5 e. Construction Management Ollice, M-044(P2-35-4I 2. Rehab 7 Dlgesters, P2-39-1.2.3 3. Primary Treatment 24 MGD Expansion, P2-41 4. Secondary Treatment Expansion, P2-42-2 5. Priority Misc. Mod .• P2-43-1 6. Misc. Modilications , P2-43-3 7. Plant 2 lnrluent Diversion B. Fire Protection, Signs & Water Sys Modifns, P2-46 9. Electl Fae Modi Ins & Safety Upgrades , P2-4 7-1 10. Fae Modifns & Safety Upgrades, P2-47-2 11 . Primary Clarifier Rehab. P2-48 12. Seimic Retrofit of Non-Structure Systems, P2-50 13. Seismic Retrofit, Structural Items P2-53-2,3,4, 5,6 14. Chemical and Plant Water Modilns, P2-55 15. Misc Seismic Modifns & Flare Improvements, P2-56 16. Miscellaneous Projects Special Projects Plant 2 17. Solids Storage: 2 Bins 18. Additional 105 Foot Digester 19. Plant Water Pump Station 20. Reclaimed Water System Pint. 2 21. Misc. Job Plan Projects (See Schedule D) 22. Other Master Plan Projects a. Replace Primary Basins A. B. C, 2006 b. Standby Power Generation. 2005 & 2015 c. Monitoring and Control System, 2005 SUB-TOTAL • TREATMENT PLANT 2 C. Water Reclamation Regional Expansion Transfer to Projects Below Reclmatlon Plant No. 1 Water Quality Management Study OCSD/OCWD Regional Water Reclamation Plant Study SUB-TOTAL -WATER RECLAMATION REGIONAL EXPANSI - - ON CAPITAL OUTLAY REVOLVING FUND SUMMARY OF JOINT WORKS CONSTRUCTION REQUIREMENTS FISCAL YEAR 1995-96 3 MONTHS ENDED 9/30/95 (1) 121 . . WORK REVISED TOT AL REQUIRED ACCUMULATE ORDER PROJECT EST BUDGET COST 1995-96 1995-96 @ 6/30/95 53715-0,A 3,550,000 350,000 3,39B,576 51813-H 3,820,000 1,400,000 308,5B2 51813-F 4,000,000 1,400,000 263,064 51813-E 2,475,000 176,309 51813-G 690,000 250,000 277,094 52045-0 14,225,000 250,000 529,657 53714-0 14,505,000 4,549 53718-0,B 18,000,000 1,400,000 16,273,049 52108-8 4,850,000 50,000 5,011,628 52108-E 2,510,000 10,000 2,640,696 2,500,000 200,000 52176-0 4,615,000 1,900,000 440,101 52189-A 3,450,000 113,362 52189-B 4,015,000 500,000 290,452 52199-B,E 6,800,000 500,000 474,753 52229-B 4,800,000 165,811 52108-C 8,410,000 50,000 3,262,714 52239-B 4,200,000 1,400,000 335,527 52269-0 525,000 250,000 19,648 4,550,000 50,000 5,200,000 3,900,000 1.170,000 4,820,000 75,000 22,250,000 500,000 103,950 11,700,000 10,000,000 520,000 172,050,000 10,535,000 34,089,522 75,500,000 100,000 (680,000) (47,914) 58231-0 280,000 153 1,540 52133-E 400,000 47,761 148,837 75,500,000 100,000 150,377 (3) (21 + 131 CURRENT FY PROJECT OUTLAY COST TO 9/30195 TO DATE 43,357 3,441,933 308,582 24,758 287,822 176,309 (94,205) 182,889 745 530,402 4,549 610,531 16,883,580 28,069 5,039,697 66,733 2,707,429 707 440,808 969 114,331 12,875 303,327 1,875 476,628 165,811 3,262,714 22,528 358,055 1,403 21,051 16,412 120,362 736,757 34,826,279 0 153 1,693 47,761 196,598 47,914 198,291 PROJECT SUMMARY Page 2 or 4 r11 . 131 .. MEMO UNEXPENDED COMPLETED JOBS BUDGET TRANSFER TO FIXED ASSETS 306,643 (2,935) 1,400,000 1,375,242 0 344,205 249,255 0 789,469 21,931 (56,733) 200,000 1,899,293 (9691 487,125 498,125 0 50,000 (2,577,369) 1,377.472 248,597 50,000 75,000 483,588 0 9,798,243 (2,580,304) 100,000 (47,914) 0 0 52,086 0 D. lnter.e_lant and Joint Facilities 1, Support Facilities and Site Improvements a. Demolition ol Old Lab lor Offices, J-11-1 b. Central lab Expansion J-1 7-3 Transfer to Projects Below - Purch & lnstl ol Racks to Secure Gas Cylinders & Dewar Office Reconfigurated lor Enviorn Mgmt Area c. Demolition or Reuse of Old Control Center d. Demolition of Support Bldg.@Pt2, J-27 2. Outfall & Booster Pump Stations a. Surge Tower Replacement, J-34-1 b. Outfall Reliability & Pumping Annex OOBS "C" J-34 c. Ext & Repl 78"to Deep Water w/120" Outfall 3. Computerized Fae. Records and Dwg. Sys. J-25-1 4. Electl. Power Systems Rehab. Studies J-25-2,3&4 5. Plants 1&2 Monitor/Control Sys, J-31-1,2,3,4,5 Transfer to Projects Below SCADA Retrofit Hardware Platform at Pits 1 & 2 Power Bldg W 1 Air Conditioning & Modifn for J-31 6. Standby Power Reliability Modifns, J-33-1,2 7. Bushard lnterplant Trunk Replacement 8. 8iosolids Disposal Projects a. Compost Demonstration Plant b. Land Acquisition c. Landfill Development Phase I d. Compost Facility e. Biosolids Disp. Landfill Phase II 2011 f. Biosolids Disp. Equip Phase I & II 2001 g. Electrical Power Distribution, 12kv 9 .. District Information Management Network a. Maint. & Oper Mgmnt Computer System Transfer to D. Item 13 (Schedule El b. Lab Information Management System Upgrades Transfer to D. Item 13 (Schedule El c. Financial Information System d. Network System Integration e. CD-Optical Data Archiving CAPITAL OUTLAY REVOLVING FUND SUMMARY OF JOINT WORKS CONSTRUCTION REQUIREMENTS FISCAL YEAR 1995-96 3 MONTHS ENDED 9/30/95 ( 1 I (21 WORK REVISED TOT Al REQUIRED ACCUMULATE ORDER PROJECT EST BUDGET COST 1995-96 1995-96 @ 6/30/95 52083-A 230,000 200,000 27,858 910,000 160,000 (69,767) (42,300) 52293-0 27.467 0 15,749 52351-0 42,300 42,300 245,000 52084-0 190,000 109,504 52241-0 6,500,000 1,185,000 768,699 31,085,000 92,050,000 58216-0 4,710,000 500,000 209.406 58216-A 1,225,000 200,000 14,961 52215-0,B 11,050,000 1,900,000 2,127,616 (2,225,600) (75,248) 52215-A 2,200,000 49,648 423,684 52342-0 25,600 25,600 52240-0,A 14,575,000 1,050,000 445,593 31,000,000 9,000,000 58242-0 22,000,000 28,600,000 50,000,000 15,600,000 11,500,000 2,707,000 52149-A 1,050,000 100,000 896,593 (25,000) 52149-B 505,000 125,000 47,773 (108, 1071 52149-C 970,000 600,000 209,073 52149-E 820,000 340,000 1,786 125,000 50,000 (3) (2) + 13) CURRENT FY PROJECT OUTLAY COST TO 9/30/95 TO DATE 27,858 15,749 0 109,504 768,699 10,411 219,817 26,171 41,132 80,471 2,208,0B7 49,648 473,332 0 22,532 468,125 14,708 14,708 896,593 47,773 209,073 679 2,465 PROJECT SUMMARY Page 3 of 4 (11 -(3) MEMO UNEXPENDED COMPLETED JOBS BUDGET TRANSFER TO FIXED ASSETS 200,000 160,000 (42,300) 0 42,300 0 1, 1B5.000 4B9,589 173,829 1,819,529 (30,811) (75,248) 0 (41,4251 25,600 1,027,468 (14,708) 100,000 (149,267) (25,000) 125,000 (108,107) 600,000 (12,190) 339,321 50,000 10. In-Plant Sampling System Modifn Transfer to Project Below Final Sampler System Upgrades 11. Improvements to Central Generation Transfer to Projects Below Boiler Chemical Dosing System Piping Insulation Addition Steam System Modifn 12. Cable Tray Improvements 13. Misc Job Plan Projects (See Schedule E) Transfer from D. Items 10 a & b Projects Above SUB-TOTAL • INTERPLANT & JOINT SUB-TOTAL • MAJOR PROJECTS E. Specjaf Projects, Studies & Research 1. Master Planning Issues a. Pers/Admin. Support Fae @ Pit 1 J-26,J,30 b. Peak Hydraulic Discharge/Outran Studies Transfer to Project Below Determination of Peak Hydraulic Discharge c. Coll, Trtmnt llt Disp Fae. Strategic Study d. NPDES Permit Support 2. Air Quality Control Program a. Toxics and ROG Control: Biotrickling filter R & D b. Air Emissions: Source Control Feasibility Study/Metal c. Air Quality Management Implementation Plan d. Biofilter for Pump Stations e. A.O. Database Development r. Central Gen Parameter Monitoring SUB-TOT AL -SPECIAL PROJECTS F. E911ipment Items SUB•TOTAL • JOINT WORKS CAPITAL REQUIREMENTS CONSTRUCTION IN PROGRESS COMPLETED AT 6/30/95 TOT AL JOINT WORKS CAPITAL REQUIREMENTS - CAPITAL OUTLAY REVOLVING FUND SUMMARY OF JOINT WORKS CONSTRUCTION REQUIREMENTS FISCAL YEAR 1995-96 3 MONTHS ENDED 9/30/95 !11 . . (21 .--. WORK REVISED TOT Al REQUIRED ACCUMULATE ORDER PROJECT EST BUDGET COST 1995-96 1995-96 @ 6/30/95 220,000 100,000 (30,2601 (5671 52331-0 30,260 567 447 650,000 300,000 (42,2001 (42,2001 52348-0 2,800 2,800 52349-0 4,800 4,BOO 52350-0 34,600 34,600 2,400,000 100,000 16,525,000 500,000 313,520 133,107 356,442,000 7,410,000 5,612.262 982,484,000 29,515,000 52,604,553 5 3 716-0/5 208 3-0 298,000 75,000 274,935 2,850,000 400,000 I 1, 151,000) 58241-0 1,151,000 4,225,000 200,000 58209,F 1,175,000 100,000 427,445 58227-0 440,000 90,000 304,697 75,000 25,000 58232-0 150,000 21,640 50,000 25,000 75,000 25,000 58235-0 350,000 75,000 3,519 9,688,000 1,015,000 1,032,236 52,725,000 3,000,000 1,666,785 -1,044,897,000 33,530,000 55,303,574 SCHEDULE F 95,017,660 1,044.897,000 33,530,000 150,321,234 131 . . (21 + (31 CURRENT FY PROJECT OUTLAY COST TO 9/30195 TO DATE 567 1,014 0 0 0 32,517 346,037 237,704 5,849,966 1,704,519 54,309,072 56 274,991 0 273 427,718 24,850 329,547 21,640 3,519 25,179 1,057,415 271,178 1,937,963 2,000,876 57,304,450 (47,698) 94,969,962 1,953,178 152,274,412 PROJECT SUMMARY Page 4 of 4 (11 -(3) MEMO UNEXPENDED COMPLETED JOBS BUDGET TRANSFER TO FIXED ASSETS 100,000 (5671 0 300,000 (42,200) 2,800 4,800 34,600 100,000 467,483 (187,4681 133.107 7,172.296 1421. 1611 27,810,481 (3, 156,6631 74,944 400,000 0 200,000 99,727 65,150 25,000 0 25,000 25,000 75,000 989,821 0 2,728.822 ( 1,544,4071 31,529,124 (4, 701,0701 47,698 (90,525,448) 31,576,822 (95,226.518) ) 1 2 3 4 5 6 7 7 8 9 10 11 12 13 14 15 16 17 18 11 /2/95 QUARTERLY SELF-FUNDED HEAL TH PLAN BUDGET REVIEW A 1995-96 BUDGET EXPENDITURES Claims -Medical 0 -Dental 387,000 -Disability* 0 Sub-Total 387,000 Contractural Services 50,000 Stop Loss Insurance 0 Transfer Out 0 Total Expenditures 437,000 REVENUE & RESERVES In-Lieu Prem. -CSDOC 400,000 -Employees 75,000 Sub-Total 475.000 Reimburse from Stop Loss Ins 0 Supplemental CSDOC Funding 0 Other 0 Total Revenues 475,000 Excess Revenue (Expense) 38,000 Cash and Carry-over Reserves 15,000 Transfers 0 Ending Reserves 53,000 • Disability insurance has been purchased rather than self-funded since December 1989 SFMQ995.XLS 3 MONTHS ENDED 9-30-95 § £ Q. ACTUAL % OF BUDGET REMAINING THROUGH THROUGH 1995-96 9-30-95 9-30-95 BUDGET 0 0.00 0 60,988 15.76 326,012 0 0.00 0 60,988 15.76 326,012 9,592 19.18 40,408 0 0.00 0 0 0.00 0 70,580 16.15 366.420 85,246 21.31 314,754 10,700 14.27 64,300 95,946 20.20 379,054 554 (554) 0 0.00 0 0 0 96,500 20.32 378,500 25,920 12,080 0 25,920 £ f g_ ACTUAL TO DATE THROUGH INCREASE FROM 9-30-94 !DECREASE) 7/1 /79 34,294 (34,294) 12,688,986 31,906 29,082 2,582,390 0 0 173.457 66,200 (5,212) 15.444,833 4,984 4,608 637,979 0 0 973,347 0 0 113,161 71,184 (604) 17,169,320 58,185 27,061 9,131,234 6,390 4,310 1,911,639 64,575 31,371 11,042,873 208 346 231,430 0 0 5,194,730 0 0 726,207 64,783 31,717 17,195,240 (6,401) 32,321 25,920 85,952 0 0 79,551 25,920 11 /2/95 QUARTERLY PUBLIC LIABILITY SELF-INSURED FUND BUDGET REVIEW 3 MONTHS ENDED 9-30-95 ~ .!! f Q §. E Q ACTUAL % OF BUDGET REMAINING ACTUAL TO DATE 1995-96 THROUGH THROUGH 1995-96 THROUGH INCREASE FROM BUDGET 9-30-95 9-30-95 BUDGET 9-30-94 !DECREASE) 7-1-79 EXPENDITURES 1 Salaries 1,000 0 0.00% 1,000 0 0 1,715 2 Claims 90,000 (4,405) -4.89% 94,405 282 (4,687) 847,712 3 Contractual Services 20,000 300 1.50% 19,700 1,118 (8181 97,881 4 Legal Services 150,000 53,699 35.80% 96,301 0 53,699 1,535,607 5 Professional Services 10,000 462 4.62% 9,538 497 (35) 133,839 6 Supplies & Other 1,000 35 3.50% 965 0 35 35 7 Sub Total 272,000 50,091 18.42% 221,909 1,897 48.194 2,616,789 8 Excess Loss Policy• 0 0 0 0 0 405,217 9 Total Expenditures 272,000 50,091 18.42% 221,909 1,897 48,194 3,022,006 REVENUES & RESERVES 10 In-Lieu Premiums 100,000 0 0.00% 100,000 0 0 2,541,509 11 Interest & Other 200,000 45,224 22.61 % 154,776 60,461 (15,237) 3,184,046 12 Allocation to Other Funds 0 0 0.00% 0 0 0 204,630 13 Reimbursement from Stop Loss 0 0 0.00% 0 0 152,449 14 Total Revenues 300,000 45,224 15.07% 254,776 60,461 (15,237) 6,082,634 15 Excess Revenue (Expense) 28,000 (4,867) 32,867 58,564 (63,431) 3,060,628 16 Beginning Cash Reserves"• 3,356,000 3,315,495 3,392,913 17 Transfers 0 0 250,000 18 Ending Cash Reserves 3,384,000 3 ,310,628 3,451,477 3,310,628 . Districts have been entirely self-insured for liability exposures since 1986 . This policy is reviewed by the Directors annually. Includes $720,208 long-term receivable due from the County of Orange. PLOB995.XLS 11 /2/95 QUARTERLY WORKERS' COMP SELF-INSURED FUND BUDGET REVIEW 3 MONTHS ENDED 9-30-95 ~ !! £ Q .5 £ .§ ACTUAL % OF BUDGET REMAINING ACTUAL TO DATE 1995-96 THROUGH THROUGH 1995-96 THROUGH INCREASE FROM BUDGET 9-30-95 9-30-95 BUDGET 9-30-94 (DECREASE) 7-1-79 EXPENDITURES 1 Salaries 10,000 0 0.00% 10,000 0 0 160,149 2 Claims 165,000 35,221 21.35% 129,779 28,947 6,274 1,903,237 3 Contractual Services 35,000 6,250 17.86% 28,750 6,360 (110) 222,333 4 Legal Services 5,000 0 0.00% 5,000 0 0 0 5 Professional Services 35,000 5,340 15.26% 29,660 4,727 613 300,636 6 Supplies & Other 12,000 0 0.00% 12,000 0 0 21,215 7 Sub Total 262,000 46,811 17.87% 215,189 40,034 6,777 2,607,570 8 Excess Loss Policy 45,000 0 0.00% 45,000 0 0 467,693 9 Total Expenditures 307,000 46,811 15.25% 260,189 40,034 6,777 3,075,263 REVENUES & RESERVES 10 In-Lieu Premiums 225,000 51,923 23.08% 173,077 60,577 (8,654) 2,509,011 11 Interest & Other 43,000 9,836 22.87% 33,164 12,682 (2,846) 979,441 12 Total Revenues 268,000 61,759 23.04% 206,241 73,259 (11,500) 3,488,452 13 Excess Revenue (Expense) (39,000) 14,948 (53,948) 33,225 (18,277) 413,189 14 Beginning/Ending Cash• 795,000 648,241 748,810 15 Transfers 0 0 250,000 16 Ending Reserves 756,000 663,189 782,035 663,189 • Includes $151 , 7 54 long-term receivable due from the County of Orange WCOB995.XLS "" I Measurement Tracking 100 90 80 70 J!l .._ C 0 a, 60 .. E 1l I!! 50 E ::::i ::I Ill z :g 40 :::E 30 20 10 0 Ahead Districts-Wide Measurement Tracking 102 Measurement Projects On Track Done Behind Not Started On Hold Canceled As part of the fiscal year 1995-96 budget process, performance measurement projects were established for all departments/divisions within the organization. The chart above shows a status summary, as of the end of the first quarter, of all the performance measurement projects approved in the 1995-96 budget document. Below is a tabular summary of this chart: Ahead 13 On Track 60 Done 5 Behind 8 Not Started 8 On Hold 8 Canceled 0 The following pages present a status of each departments/divisions performance measures as of the end of the first quarter. Page 1 Measurement Tracking Executive Management 9 Measurement Projects 9 8 7 6 .!I -C: 0 QI 5 ._ E 1l ! E :::i 4 :::i en z m :Iii 3 2 Ahead On Track Done Measurement Title % Complete Complete Consolidation Study. (1) 10% Improve management skills of managers and supervisors. 20% Support Boards consideration of committee structure change. (2) 0% Represent Districts' interests in Orange County bankruptcy. 75% Improve agency communication. (3) 25% Direct work on Districts' Strategic Plan. 5% Create climate that promotes change. 10% Establish clear goals for the departments and all subordinate units. 100% Renew NPDES ocean discharge pemiit. 20% Behind On Hold Status Start On Track 7/1/95 On Track 7/1/95 On Hold 7/1/95 On Track 7/1/95 On Track 7/1/95 On Track 7/1/95 On Track 7/1/95 Done 7/1/95 On Track 7/1/95 (1)-Feasibility analysis for Consolidation is underway and will be presented to the Executive Committee in February, 1996. (2)-Board consideration of Committee structure is scheduled for December meeting. (3)-Communications manager has been hired and will begin work November 13. Page2 End 12/31/95 .. Measurement Tracking Board Secretary 2 Measurement Projects J!l -C 0 QI ~ ~ .D .. E::, ::, Ill z m ::E Ahead Measurement Title On Track Done Streamline procedures for preparing agenda and minutes. Behind Provide regular updates of Director info. to mgmt. and Committee seer. Not Started On Hold % Complete Status 25% On Track 25% On Track Communications 4 Measurement Projects 4 J!l 3 .... C 0 QI ._ E GI QI 2 .D ... E ::, ::, Ill z m 1 ::E 0 Ahead On Track Done Measurement Title Establish and organize Communications Office. Define Communications Office Mission & develop work plan. Prepare Communications Office Procedures Manual. Behind Not Started On Hold % Complete Status 95% On Track 100% On Track 0% On Hold Start 7/1/95 7/1/95 Start 7/1/95 7/1/95 7/1/95 Develop a biannual publication for public officials and comm. leaders. 0% On Hold 12/31/09 Page 3 Canceled End 12/31/95 12/31/95 Canceled End 9/1/95 12/31/95 2/1/96 12/31/95 Measurement Tracking Finance Administration 4 Measurement Projects Ahead On Track Done Behind Not Started Measurement Title Replace variable rate borrowing remarketing agent to reduce costs. Complete implementation of treasury management functions. Provide safe, liquid and productive cash and investment program. Improve comprehensive budget process started in 1994-95. % Complete 100% 100% 100% 5% Status Done Done Done Behind Accounting 3 Measurement Projects Ahead On Track Done Behind Not Started Measurement Title % Complete Status On Hold On Hold Oversee installation of a new integrated Financial Info. System. Develop Districts'-wide Finance policy & procedure manual. Develop Districts'-wide comprehensive budget manual. 15% On Track 15% On Track 5% On Track Page4 Start 7/1/95 7/1/95 1/1/95 7/1/95 Start 7/1/95 7/1/95 7/1/95 Canceled End 12/31/95 12/31/95 9/30/95 6/30/96 Canceled End 12/31/96 4/30/96 12/31/95 Measurement Tracking 4 J!l 3 -C 0 Cl) ._ E Cl) Cl) 2 .c ... E ::, ::, .,, z::: :ii: 0 Ahead Measurement Title On Track Purchasing & Warehousing 4 Measurement Projects Done Behind Not Started % Complete Status On Hold Compete revision of bidders list applic. to tie to commodity code listing. Establish annual contracts to reduce need for in-house inventory. Establish ABC analysis for classifying and analyzing inventory. Develop policy on removal of misc. low cost hardware from inventory. 60% On Track 10% On Track 15% On Track 75% Ahead Information Technology Administration 4 Measurement Projects Start 7/1/95 7/1/95 1/1/95 7/1/95 Canceled End 1/31/96 3/31/96 3/31/96 12/31/95 J!l 0~3 -------------------------------------- Z~2 -----------------------E ::, ::, .,, z::: :ii: Ahead Measurement Title On Track Develop Information Systems Master Plan Done Behind Develop Performance Measurement survey for IT Department users. Obtain adequate working space for IT Department staff. Create formal Policies and Procedures Manual for IT Department. Page 5 Not Started On Hold % Complete Status 0% On Hold 0% Not Started 5% On Track 0% Not Started Start 7/1/95 7/1/95 7/1/95 7/1/95 Canceled End Measurement Tracking Hardware Support 3 Measurement Projects 3 J!.I -C: 0 GI 2 ._ E GI GI .c ... E :::i :I (II z ::: :::E 0 Ahead On Track Done Behind Measurement Title Install auxiliary PBX for Plant 2 to provide added telephone capabilities. Establish annual contracts to reduce need for in-house inventory. Establish ABC analysis for classifying and analyzing inventory. Not Started On Hold % Complete Status 10% On Track 5% On Track 0% Not Started Software & Plant Automation 4 Measurement Projects 4 J!.I 3 -C: 0 GI ._ E GI GI 2 .c ... E :::i :I (II z ::: :::E 0 Ahead On Track Done Behind Measurement Title Extend CMMS application to include data for Warehouse & Auto Shop. Provide software support for installation of new FIS. Replace Plant Automation System at Plant 2 with new technology. Install Districts-wide integrated network. Page6 Not Started On Hold % Complete Status 0% On Hold 0% Not Started 33% On Track 0% Not Started Start 7/1/95 7/1/95 1/1/95 Start 7/1/95 7/1/95 7/1/95 7/1/95 Canceled End 12/31/95 1/31/96 6/30/96 Canceled End 1996-97 3/31/96 6/30/96 ... Measurement Tracking J!! 3~--------, 0 ;; 2 ti;~-+---------< .ll • E :::i :::I Ill z ::l ~ 0 --+------1--' Human Resources Administration 3 Measurement Projects Ahead On Track Done Behind Not Started On Hold Measurement Title Develop and implement a Districts-wide training program. Develop and publish an Employee Handbook. Improve the quality of the Management Performance Review Program. % Complete 5% 95% 5% Status On Track On Track On Track Human Resources & Training 3 Measurement Projects J!! .... C: o s 2 +-------~ !!! E :::i :::I Ill z ::l ~ 0 +------+-- Ahead Measurement Title On Track Done Develop and implement training opportunities and programs. Improve and refine management and professional staff evaluations. Conduct Districts-wide attitude survey. Behind Not Started On Hold % Complete Status 25% On Track 5% On Track 0% On Track Safety & Emergency Response 3 Measurement Projects J!! .... C: o s 2 ---------~ !!! E :::i :::I Ill z m ~ 0 +------- Ahead Measurement Title On Track Done Develop safety training programs based on needs assessment. Develop and implement an integrated Emergency Response Plan. Conduct industrial hygiene evaluations to determine hazards. Page7 Behind Not Started On Hold % Complete Status 100% Done 5% On Track 1% On Track Start 7/1/95 7/1/95 7/2/95 Start 7/1/95 7/1/95 7/1/95 Start 7/1/95 7/1/95 7/1/95 Canceled End Canceled End Canceled End Measurement Tracking Maintenance Administration 3 Measurement Projects Ahead On Track Done Measurement Title Emphasize preventive maintenance tasks to reduce life cycle costs. Implement remaining Ernst & Young O&M recommendations. Continue building the computer database for the CMMS. Behind Not Started On Hold % Complete 80% 80% 80% Status On Track Ahead On Track Maintenance Scheduling 2 Measurement Projects J!l o a; .! ~ 1 -1-------E :::i :::i (II z g: == Ahead Measurement Title On Track Done Identify optimum preventive maintenance rates to reduce costs. Benchmark equipment down time and establish acceptable targets. Pages Behind Not Started On Hold % Complete Status 3% Behind 10% On Track Start 7/1/95 7/1/95 1/1/95 Start 7/1/95 7/1/95 Canceled End 12/31/95 Canceled End Measurement Tracking !I -C 3 +-------0 cu ~ ~ 2 +-------E :::i :::i en z :g ::!: Plant Maintenance 4 Measurement Projects Ahead On Track Done Behind Not Started On Hold Measurement Title Develop a valve exercising plant maintenance program. Develop a valve change plant maintenance program for critical areas. Investigate applicable certification programs for the various crafts. Develop an area assignment sys. to leverage field crew resources. % Complete Status 5% On Track 8% On Track 10% On Track 12% On Track Collection Facilities Maintenance 4 Measurement Projects 4 !I 3 -C 0 cu .. E cu cu 2 .c .. E :::i :::, en z :g ::!: 0 Ahead On Track Done Behind Measurement Title Develop a CMMS data base for pump stations & a plant maint. listing. Continue to investigate alternate chemicals for cheaper order control. Contract for line cleaning in some of the Districts' Assmt. Districts. Expand a root control program for District No. 7 sewer system. Page 9 Not Started On Hold % Complete Status 60% Ahead 50% On Track 60% On Track 40% On Track Start 7/1/95 7/1/95 7/1/95 7/1/95 Start 7/1 /95 7/1/95 7/1/95 7/1 /95 Canceled End 6/30/96 6/30/96 6/30/96 6/30/96 Canceled End 6/30/96 6/30/96 1/31/96 Measurement Tracking Mechanical Maintenance 3 Measurement Projects 3 J!l -C 0 GI 2 ._ E a, GI .0 .. E ::i ::i Ill z: :!l 0 Ahead On Track Done Behind Measurement Title Initiate tracking program for repetitive breakdowns of digester pumps. Reduce costs by expanding central generation engines maintenance. Start cross training of personnel between plants. Not Started On Hold % Complete 100% 50% 75% Status Ahead On Track Ahead Electrical Maintenance 4 Measurement Projects J!l 0 li; 3 .. E 1l I!! 2 E ::i :I Ill z: :!l 0 Ahead Measurement Title On Track Done Complete CMMS database with regard to A/C systems. Develop a predictive maint. program for electric equipment. Develop a 12-Kilovolt meter and relay database. Privatize Central Generation Generator Maintenace to reduce costs. Page 10 Behind Not Started On Hold % Complete Status 90% Ahead 25% On Track 70% Ahead 90% Ahead Start 7/1/95 7/1/95 7/1/95 Start 7/1/95 7/1/95 7/1/95 7/1/95 Canceled End 6/30/96 Canceled End 2/28/96 3/31/96 6/30/96 11/30/95 1 Measurement Tracking Instrumentation Maintenance 3 Measurement Projects Ahead On Track Done Behind Not Started On Hold Measurement Title Develop activity code within CMMS to track staff efforts. Privatize maintenance services for the 13 influent flow meters. Develop a charting process for recording preventative maint. backlog. % Complete Status 10% On Track 90% Ahead 75% Ahead Technical Services Administration 4 Measurement Projects 4 .!! 3 -C: 0 Q) .. E Q) Q) 2 .c .. E ::i :I Ill z :g ~ 0 Ahead On Track Done Behind Measurement Title Improve coverage of legislation & improve assmt. of compliance regs. Develop imprvmnt. teams & begin implementing EY recommendations. Develop compliance assmt. on discharges from treatment plants. Standardize biosolids inspection protocals & optimize staff usage. Page 11 Not Started On Hold % Complete Status 50% On Track 75% On Track 15% On Track 5% Behind Start 7/1/95 7/1/95 7/1/95 Start 7/1/95 7/1/95 7/1/95 7/1/95 Canceled End 6/30/96 3/31/96 1/31/96 Canceled End 12/31/95 6/30/96 6/30/96 3/31/96 Measurement Tracking Ahead On Track Measurement Title Environmental Management 3 Measurement Projects Done Behind Not Started % Complete Status On Hold Develop a 10-year synthesis of ocean monitoring program findings. Conduct a study of biotrickling filters for the removal of pollutants. Prepare a 1995 Air Toxics Emssion Inventory Plan and Report. 5% On Track 80% Ahead 60% Ahead Environmental Sciences Laboratory 3 Measurement Projects Ahead On Track Done Measurement Title Develop expanded air analysis capabilities Reduce labor costs for metals analyses of wastewater. Reduce labor costs for organic analyses of wastewater. Page 12 Behind Not Started On Hold % Complete Status 20% Behind 0% Not Started 0% Not Started Start 7/1/95 7/1/95 7/1/95 Start 7/1/95 7/1/95 7/1/95 Canceled End 2/28/96 2/28/96 2/28/96 Canceled End i' Measurement Tracking Source Control 3 Measurement Projects Ahead On Track Done Behind Not Started On Hold Measurement Title Evaluate the EPA Effluent Guidelines for regulating industrial users. Finalize the results of the non-industrial source sampling. Develop a program to regulate small-quantity dischargers. % Complete Status 40% On Track 20% On Track 20% On Hold Operations Administration 3 Measurement Projects Ahead Measurement Title Reduced natural gas cost. Increase staff training. On Track Improve employee communications. Done Page 13 Behind Not Started On Hold % Complete Status 20% On Track 30% Ahead 20% On Track Start 7/1/95 7/1/95 7/1/95 Start 7/1/95 7/1/95 7/1/95 Canceled End 6/30/96 6/30/96 6/30/96 Canceled End 6/30/96 6/30/96 6/30/96 Measurement Tracking Plant Operations 4 Measurement Projects 4 J!I 3 -C 0 CII '" E ell CII 2 .0 ... E ::i :, en z: :E 0 Ahead On Track Done Behind Not Started On Hold Measurement Title Study staffing productivity per Ernst & Young review. Reduce overtime. Run Treatment plant cost-effectively. Reduce biosolids disposal cost. % Complete 0% 25% 25% 10% Engineering Administration 2 Measurement Projects Status Not Started On Track On Track Behind Ahead On Track Done Behind Not Started On Hold Measurement Title Modify Planning & Design organization for E & Y recommendations Implement all 14 recommendations in CIP Report Page 14 % Complete 50% 30% Status Behind Behind Start 7/1/95 7/1/95 7/1/95 7/2/95 Start 7/1/95 7/1/95 Canceled End Canceled End 6/30/96 Measurement Tracking Design Engineering 5 Measurement Projects 5 .!I 4 .... C: 0 a, ... E 3 a, a, .a ... E ::i 2 :I Ill z i == 0 Ahead On Track Done Measurement Title Complete 75% of conn permits in 1day, 90% in 3 days, 100% in 5 Design facilities which satisfy customer Track and manage $33.5 million CORF project budget Comply with adopted Master Plan Improve submittal process on all new design projects Behind Not Started On Hold % Complete Status NIA On Tracie NIA On Track NIA On Track NIA Behind NIA On Track Engineering Planning 3 Measurement Projects Ahead On Track Measurement Title Comply with adopted Master Plan Track and manage budget and schedule Update "as-built" information Done Page 15 Behind Not Started On Hold % Complete Status NIA On Track N/A On Track 5% On Track Start 711/95 7/1/95 7/1/95 7/1195 711/95 Start 711195 711/95 711/95 Canceled End 6130/96 6/30196 6130/96 6/30/96 6/30/96 Canceled End 6/30/96 6/30/96 6/30/96 Measurement Tracking Construction Management 3 Measurement Projects Ahead On Track Done Measurement Title Revise record drawing process on all new construction projects Improve shop drawing and submittal process on new projects Construction personnel to keep current on codes and standards Page 16 Behind Not Started On Hold % Complete Status 50% On Hold 50% On Hold 25% On Track Start 7/1/95 7/1/95 7/1/95 Canceled End 6/30/96 6/30/96 6/30/96 { Fonnat Ori ...... 6/-~(r}{} • Written Report •Overheads • Slides ~IT:J:7~:~ Department Head Sign Off~(:{; • Flip Charts Anticipated Time 25 mins. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR NOVEMBER 8, 1995 F AH R95-46: Consideration of motion to receive, approve and file the Annual Audit Report submitted by Moreland & Associates, Certified Public Accountants, and staff; the annual Management Letter, the Auditor's Report to the Finance, Administration and Human Resources Committee, and the Appropriations Limit Report; and forward the Comprehensive Annual Financial Report to the Executive Committee. Summary: The Districts' independent auditors, Moreland & Associates, have completed their examination for 1994-95. Each year, the FAHR Committee reviews the results of the audit and the corresponding management letter. Michael Moreland, Partner and Charles Acocella, Senior Manager, will attend the meeting to respond to any questions of Directors. This year, staff has again prepared the report as a Comprehensive Annual Financial Report (CAFR), and has completely prepared the statements in-house for the first time. The CAFR will be submitted to the Government Finance Officers' Association (GFOA) for their review in anticipation of another award. Last year's CAFR, the first ever submitted by the Districts, did earn the GFOA award. The audit report, management letter and staffs brief comments are enclosed. If you should have any questions prior to the meeting, please call Gary Streed at (714) 962-2411, ext. 2500; or Mike White, ext. 2520. Staff and the auditors will make a brief presentation at the meeting. Staff Recommendation Staff recommends the Committee receive, approve and file the 1994-95 Comprehensive Annual Financial Report and forward it to the Executive Committee and the Joint Boards. J:IWPDOC\FIN\CRANEIFPC.MTGIFAHR.9511TEMIFAHR95.46 November 8, 1995 MEMORANDUM TO: Finance, Administration and Human Resources Committee FROM: Gary G. Streed, Director of Finance SUBJECT: 1994-95 Management Letter Comments (FAHR95-46) As a part of their engagement, Moreland & Associates was asked to prepare a management letter for your review. The purpose of a management letter is to comment upon, and to make recommendations that may improve internal controls or other phases of financial operations. The letter has been completed and is enclosed. This memo will supplement the comments with staff's understanding of the recommendations and will advise the Committee of any actions taken or being taken to implement the recommendations where appropriate. Staff is pleased to report tht the auditors noted no matters they considered to be a material weakness. Cash Disbursements Process 1. The auditors observed that in seven of the fifty cash disbursements they tested, the initials of the accounts payable clerk were not on the invoice. The accounts payable staff has been reminded that in addition to checking the math and writing the general ledger posting instructions on each invoice, they are required to initial each invoice to indicate their review of math and purchasing authority. 2. In one of the seven cash disbursements requiring informal bids which were tested by Moreland & Associates, the Purchasing Division had no documentation to explain the lack of any bids. The purchase reported was for two pieces of electronic instrumentation used at the primary basins and in the headworks for a total of $1,300, ordered from two separate requisitions and combined into one purchase order. The combined order amount would have required informal bids, if the items were available from more than one supplier. In this case, the electronic parts were to replace parts in equipment we can only purchase from one supplier; the manufacturers' representative. The facts surrounding this "sole source" purchase should have been noted on the purchase requisition. CSDOC • P.0.Box8127 • FountainValley,CA92728-8127 •Tel. (714)962-2411 •FAX(714)962-3954 1994-95 Management Letter Comments Page2 November 8, 1995 Purchasing Division staff has been reminded of the informal bid requirements and processes, as well as those to document sole source procurements. Internal Control Policies 1. The auditors noted that the Districts do not have a mandatory vacation policy whereby another employee performs the vacationing employee's duties to ensure the propriety of procedures being performed. This comment applies primarily to Accounting and Finance Division employees all of whom have been away from the office for at least a week in the past year. In order to prepare for these planned absences, as well as unplanned illnesses, staff is cross-trained and allowed to perform the duties of another during training and peak loads. Many duties are also rotated during the year to allow a fresh perspective and to maintain enthusiasm. The FAHR Committee has reviewed and approved the written internal control policies and procedures for the Finance Department within the past year. While these policies do not require vacations, they emphasize separation of duties and responsibilities. In this way, one employee's work product is constantly reviewed by another. One purpose of this review is to ensure that procedures are followed. 2. Moreland & Associates noted that access to the room which contains the financial system computer is not restricted, creating the potential for tampering. The computer room is within the Accounting Division office area and access is clearly visible to all employees. The door latch to the computer room has been repaired to enable compliance with the suggestion that the door be locked. Investments 1 . The auditors noted that the monthly investment report for June did not include all of the items required by the Districts' Investment Policy. The Committee may recall that an Interim Investment Policy with reporting requirements was adopted in February 1995 and replaced in May 24, 1995, by the permanent and current Investment Policy. The reports submitted to the FAHR Committee through August 1995, while staff was administering the investments, were in accordance with the Interim Investment Policy. When the permanent policy was adopted, the Directors and staff expected to retain the services of registered external investment advisers and money managers. This process was completed in September 1995. ... 1994-95 Management Letter Comments Page 3 November 8, 1995 Between the adoption of the final Investment Policy at the end of May, and the engagement of PIMCO at the beginning of September, staff continued to maintain the Districts' investments in very short-term U.S. Treasury Bills and LAIF in accordance with the interim policy and in expectation that PIMCO would be retained within the month. Therefore, the monthly investment reports for June, July and August were prepared in accordance with the Interim Investment Policy. The report for September was the first report prepared in accordance with the final Investment Policy and the first with investments other than U.S. Treasury Bills and LAIF. Staff will continue to comply with the Investment Policy. General Accounting 1. The auditors report that the Accounting staff identified and made several adjustments to the books subsequent to the initial close of the year and suggest a pre-closing review to reduce the number of entries. Staff concurs with the observation. This year was a special one with the OCIP bankruptcy, bringing cash and investment management in-house, making all of the prior year's audit adjustments to the books and preparing our own statements for the first time. Now that all of these one-time events are behind us, staff will do what is needed to reduce or eliminate adjusting entries. GGS:lc J:\WPDOC\FINICRANEIFPC.MTGIFAHR.95\STAFF.RPl\MGMLTRCM.95 Attachment Moreland&~ CERTIFIED PUBLIC ACCOUNTANTS September 22, 1995 The Board of Directors of the County Sanitation Districts of Orange County The Board of Directors: 610 NEWPORT CENTER DRIVE, SUITE 840 NEWPORT BEACH, CALIFORNIA 92660 (714) 760-9788 2111 PALOMAR AIRPORT ROAD, SUITE 150 CARLSBAD, CALIFORNIA 92009 (619) 431-8476 We have audited the combined financial statements of the County Sanitation Districts of Orange County (Districts) as of and for the year ended June 30, 1995, and have issued our report thereon dated September 22, 1995. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free of material misstatement. In planning and performing our audit of the combined financial statements of the Districts for the year ended June 30, 1995, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the combined financial statements and not to provide assurance on the internal control structure. The management of the Districts is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of combined financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. The Board of Directors of the County Sanitation Districts of Orange County September 22, 1995 Page 2 Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under the standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the combined financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. However, we noted the following matters of less significance involving the internal control structure. CASH DISBURSEMENTS PROCESS During our testwork on the controls over the cash disbursements process, we noted the following instances where the Districts' prescribed procedures were not followed: 1. In seven of fifty cash disbursements tested, the initials of the accounts payable clerk were not on the vendor's invoice. The purpose of the clerk's initials is to indicate that a review of the invoice has been performed. 2. In one of the seven cash disbursements tested which required informal bids, the Purchasing Department did not retain documentation of the informal bids obtained or documentation of why informal bids might not have been obtained. The informal bid process is used to ensure that the Districts are receiving goods and services at competitive prices. We recommend the Districts take more care in processing cash disbursements transactions to ensure the prescribed internal control procedures are being followed. INTERNAL CONTROL POLICIES While obtaining an understanding of the Districts' general internal control policies, we noted the following weaknesses: 1. The Districts do not have a mandatory vacation policy whereby another employee performs the vacationing employee's duties to ensure the propriety of procedures being performed. We recommend the Districts implement either a mandatory vacation policy or a periodic rotation of duties. The Board of Directors of the County Sanitation Districts of Orange County September 22, 1995 Page 3 2. The Districts do not restrict access to the computer room which contains the financial system computer. We recommend the Districts restrict entrance to only specified personnel to minimize the potential of tampering with the financial system software and hardware. INVESTMENTS We noted certain conditions related to the internal control system and the June 30, 1995 monthly investment report that did not comply with prescribed procedures. We understand the prescribed procedures were developed shortly before year end with the intent that investments would be managed by an external investment manager; however, an external investment manager had not been engaged as of year end. Therefore, management continued to follow the interim procedures intended for the period from the time the Districts began administering their investment portfolio (rather than investing in the Orange County Investment Pool) to the time of contracting with an external investment manager. GENERAL ACCOUNTING Many adjustments were required subsequent to the Districts' initial close, most of which were identified by the Districts' personnel. The majority of these entries were related to the allocation of joint costs and to the capitalization of expenditures for construction in progress. We recommend the Districts perform their year-end account analysis prior to the initial close of the general ledger in order to facilitate the closing process. This report is intended for the information of management and the Board of Directors of the Districts. This restriction is not intended to limit the distribution of this report, which is a matter of public record. We would like to express our appreciation for the courtesy and assistance extended to us during our audit by all of your staff. We would be pleased to discuss with you at your convenience the matters contained in this letter or any other matters which you would like to discuss. Moreland&~ CERTIFIED PUBLIC ACCOUNTANTS September 22, 1995 The Finance, Administration and Human Resources Committee of the County Sanitation Districts of Orange County 10844 Ellis Avenue Fountain Valley, CA 92827-8127 610 NEWPORT CENTER DRIVE, SUITE 840 NEWPORT BEACH, CALIFORNIA 92660 (714) 760-9788 2111 PALOMAR AIRPORT ROAD, SUITE 150 CARLSBAD, CALIFORNIA 92009 (619) 431-8476 The Finance, Administration and Human Resources Committee: We have audited the combined financial statements of the County Sanitation Districts of Orange County, California (Districts) for the year ended June 30, 1995, and have issued our report thereon dated September 22, 1995. Under generally accepted auditing standards, we are providing you the attached information related to the conduct of our audit. Our responsibility under generally accepted auditing standards is to express an opinion on the financial statements of the Districts based on our audit. In carrying out this responsibility, we assessed the risk that the financial statements may contain a material misstatement, either intentional or unintentional, and designed and conducted our audit to provide reasonable, but not absolute, assurance that misstatements material to the financial statements would be detected. In addition, we considered the internal control structure of the Districts to gain a basic understanding of the internal control policies and procedures in order to design an effective and efficient audit approach, not for the purpose of providing assurance on the internal control structure. Significant Accounting Poticies The significant accounting policies of the Districts are described in Nate 1 to the combined financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no significant, unusual transactions during the year, or transactions for which there is a lack of authoritative guidance or consensus. Management Judgments and Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based upon management's current judgments. The allowance for doubtful accounts and reported liability for outstanding claims is based on estimates at the balance sheet date. These estimates are subject to change as more information is obtained. \. The Finance, Administration and Human Resources Committee of the County Sanitation Districts of Orange County September 22, 1995 Page 2 Significant Audit Adjustments As a result of our audit related testwork, we proposed no corrections of the financial statements that, in our judgment, either individually or in the aggregate, had a significant effect on the Districts' financial reporting process. Other Information in Documents Containing Audited Financial Statements Our responsibility for other information in documents containing the Districts' combined financial statements and our report thereon does not extend beyond financial information identified in our report, and we have no obligation to perform any procedures to corroborate other information contained in these documents. We have, however, read the other information included in the Districts' comprehensive annual financial report; and no matters came to our attention that cause us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or its manner of presentation, appearing in the financial statements. Disagreements With Management There were no disagreements with management on financial accounting and reporting matters that, if not satisfactorily resolved, would have caused a modification to our report on the Districts' 1995 financial statements. Consultation With Other Accountants We are not aware of any instances where management has consulted with or obtained opinions, written or oral, from other independent accountants during the past year that were subject to the requirements of Statement on Auditing Standards No. 50, Reports on the Application of Accounting Principles. Major Issues Discussed With Management Prior to Retention We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Districts' auditors. These discussions occurred in the normal course of our professional relationship. This information is intended solely for the use of the Finance, Administration and Human Resources Committee and should not be used for any other purpose. However, we understand that this document may be public information. Moreland&~ CERTIFIED PUBLIC ACCOUNTANTS TO: The Board of Directors of the County Sanitation Districts of Orange County, California: 610 NEWPORT CENTER DRIVE, SUITE 840 NEWPORT BEACH, CALIFORNIA 92660 (714) 760-9788 2111 PALOMAR AIRPORT ROAD, SUITE 150 CARLSBAD, CALIFORNIA 92009 (619) 431-8476 We have applied the procedures enumerated below to the accompanying Appropriations Limit worksheets #6 of the County Sanitation Districts #1,2,3,5,6,7 and 11 of Orange County (Districts) for the year ended June 30, 1995. These procedures, which were agreed to by the League of California Cities and presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, were performed solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report is intended for the information of management and the Board of Directors. This restriction is not intended to limit the distribution of this report, which is a matter of public record. The procedures performed and our findings were as follows: 1. We obtained the completed worksheets ( #1 through #7) presented in the Article XIIIB Appropriations Limitation Uniform Guidelines and determined that the limit and annual adjustment factors were adopted by resolution of the Board of Directors. We also determined that the population and inflation options were selected by a recorded vote of the Board of Directors. 2. For the accompanying Appropriations Limit worksheet # 6, we added line A, last year's limit, to line E, total adjustments, and agreed the resulting amount to line F, this year's limit. 3. We agreed the current year information presented in the accompanying Appropriations Limit worksheet #6 to the other worksheets described in #1 above. 4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet #6 to the prior year appropriations limit adopted by the Board of Directors. These agreed upon procedures are substantially less in scope than an audit, the objective of which is the expression of an opinion on the accompanying Appropriations Limit worksheets #6. Accordingly, we do not express such an opinion. Based on the application of the procedures referred to above, nothing came to our attention that caused us to believe that the accompanying Appropriations Limit worksheets #6 referred to above were not computed in accordance with Article XIIIB of the California Constitution. Had we performed additional procedures or had we made an audit of the accompanying Appropriations Limit worksheets #6 and the other completed worksheets described in #1 above, matters might have come to our attention that would have been reported to you. ~~ f /id.d,1r'C1-~ A. B. C. D. E. F. ) COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, DISTRICT #1 APPROPRIATIONS LIMIT WORKSHEET #6 FY 1994-95 BUDGET AMOUNT LAST YEAR'S LIMIT $2,592,508 I ADJUSTMENT FACTORS 1. Population% .66%1 2. Inflation% .71% Total Adjustment % 1.37%1 ANNUAL ADJUSTMENT$ $35,639 I OTHER ADJUSTMENTS: Assumed Responsibility (Lost Responsibility) (Transfer to Private) (Transfer to Fees) Sub-total TOTAL ADJUSTMENTS $35,639 I CURRENT YEAR LIMIT $2,628,147 I A. B. C. D. E. F. COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, DISTRICT #2 APPROPRIATIONS LIMIT WORKSHEET #6 FY 1994-95 BUDGET AMOUNT LAST YEAR'S LIMIT $9,671,899 I ADJUSTMENT FACTORS 1. Population% 1.61%1 2. Inflation% .71% Total Adjustment % 2.33%1 ANNUAL ADJUSTMENT$ $225,493 I OTHER ADJUSTMENTS: Assumed Responsibility (Lost Responsibility) (Transfer to Private) (Transfer to Fees) Sub-total TOTAL ADJUSTMENTS $225,493 I CURRENT YEAR LIMIT $9,897,392 I A. B. C. D. E. F. COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, DISTRICT #3 APPROPRIATIONS LIMIT WORKSHEET #6 LAST YEAR'S LIMIT ADJUSTMENT FACTORS 1. Population % 2. Inflation% Total Adjustment % ANNUAL ADJUSTMENT$ OTHER ADJUSTMENTS: Assumed Responsibility (Lost Responsibility) (Transfer to Private) (Transfer to Fees) Sub-total TOTAL ADJUSTMENTS CURRENT YEAR LIMIT FY 1994-95 BUDGET AMOUNT 1 s13,266,966 I 1.83%1 .71% 2.55%1 $338,705 I $338,705 j 1 sn,605,671 I A. B. C. D. E. F. COUNfY SANITATION DISTRICTS OF ORANGE COUNTY, DISTRICT #5 APPROPRIATIONS LlMIT WORKSHEET #6 FY 1994-95 BUDGET AMOUNT LAST YEAR'S LlMIT $2.424,793 1 ADJUSTMENT FACTORS 1. Population % .75%1 2. Inflation% .71% Total Adjustment % 1.46%1 ANNUAL ADJUSTMENT$ $35,531 j OTHER ADJUSTMENTS: Assumed Responsibility (Lost Responsibility) (Transfer to Private) (Transfer to Fees) Sub-total TOTAL ADJUSTMENTS $35,531 j CURRENT YEAR LlMIT s2,460,324 1 A. B. C. D. E. F. COUNTY SANITATION DISTRICTS OF ORANGE COUNfY, DISTRICT #6 APPROPRIATIONS LIMIT WORKSHEET #6 IAST YEAR'S LIMIT ADJUSTMENT FACTORS 1. Population% 2. Inflation% Total Adjustment % ANNUAL ADJUSTMENT$ OTHER ADJUSTMENTS: Assumed Responsibility (Lost Responsibility) (Transfer to Private) (Transfer to Fees) Sub-total TOTAL ADJUSTMENTS CURRENT YEAR LIMIT FY 1994-95 BUDGET AMOUNT $1,557,621 I 1.37%1 .71% 2.09%1 $32,sso 1 $32,sso 1 $1,590,171 I A. B. C. D. E. F. ) COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, DISTRICT #7 APPROPRIATIONS LIMIT WORKSHEET #6 LAST YEAR'S LIMIT ADJUSThIBNT FACTORS 1. Population% 2. Inflation% Total Adjustment % ANNUAL ADJUSTMENT$ OTHER ADJUSTMENTS: Assumed Responsibility (Lost Responsibility) (Transfer to Private) (Transfer to Fees) Sub-total TOTAL ADJUSTMENTS CURRENT YEAR LIMIT FY 1994-95 BUDGET AMOUNT $4,163,006 I 4.15%1 .71% 4.89%1 $203,549 J $203,549 I $4,366,555 I A. B. C. D. E. F. '\ I COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, DISTRICT #11 APPROPRIATIONS UMIT WORKSHEET #6 !AST YEAR'S UMIT ADJUSTMENT FACTORS 1. Population % 2. Inflation% Total Adjustment % ANNUAL ADJUSTMENT$ OTHER ADJUSTMENTS: Assumed Responsibility (Lost Responsibility) (Transfer to Private) (Transfer to Fees) Sub-total TOTAL ADJUSTMENTS CURRENT YEAR UMIT FY 1994-95 BUDGET AMOUNT $2,935,215 I 1.23%1 .71% 1.95% 1 $57,199 I $57,199 I $2,992,414 I Format • Written Report • Overheads • Slides • Flip Charts (13) Summary Anticipated Time 6 mins. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR NOVEMBER 8, 1995 Consideration of upcoming meetings and items to be discussed at those meetings. 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, January 10, 1996, 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. As there is no Executive Committee meeting scheduled in December, the FAHR Committee is likewise not scheduled. Hardware Maintenance Contract for Personal Computers Help Desk Services Contract for Personal Computers Purchase Hardware for Windows NT Computer Network 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 Revised Employee Handbook Industrial Hygiene Consultant Selection Proposed Agenda Process Improvements Quarterly Training Program Update Quarterly Communication Program Update Quarterly EY Recommendations Status Report Annual Review of Investment Policy Fiscal Policy Assumptions for 1996-97 Budget Quarterly JO and CORF Budget Review Quarterly Travel & Training Report Initiate Long-term Financial Plan Review Initiate Financial Team Selection RFP Staff Recommendation Information only item. J:IWPDOC\FINICRANEIFPC.MTGIFAHR.95VTEMICALEN11.95