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Home My WebLink About1996-04-10FILED In tha Otf ic• of the Secretary · County Sanitalk)n District~) v-10 No(s) L ,~, ~ • ..:> ,1.tz/2,//, I W, County Sanitation Districts of Orange County, California P.O. Box 8127 • 10844 Ellis Avenue Fountain Valley, CA 92728-8127 Telephone: (714) 962-2411 By ,•1.721996 MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Wednesday, April 10. 1996, 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 April 10, 1996 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 John C. Cox, Jr., Joint Chair Jan Debay Burnie Dunlap Wally Lynn Thomas Saltarelli Roger R. Stanton, Vice Chair William G. Steiner Peer Swan Committee Directors Absent: James Flora John M. Gullixson Staff Present: Donald F. McIntyre, General Manager Blake P. Anderson, Assistant General Manager Judith A. Wilson, Assistant General Manager Ed Hodges, Director of General Services Admin. Gary Streed, Director of Finance Mike Peterman, Director of Human Resources Michelle Tuchman, Director of Communications Steve Kozak, Financial Manager Linda Eisman, Training Manager· Dawn McKinley, Sr. Human Resources Analyst Others Present: Tom Woodruff, General Counsel (2) APPOINTMENT OF A CHAIRMAN PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS No comments were made. (J5Jl-; \'1'101.;:;<~0:1/ lo r,:i,!1(1 w/, 01 (~li-=, ".,-/Q llOltii!'irisc V!ll&J~~l • ~---. _t~:tM Minutes of Finance, Adn'l and Human Resources Committe ,,........_, Page2 April 10, 1996 (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 (c) Don McIntyre reported on the proposed reorganization of the Operations and Maintenance Departments to combine the maintenance functions with operational functions. He presented slides of the proposed organizational changes showing how the reorganization is to take place. It is proposed that Bob Ooten head an expanded Operations and Maintenance Department that includes all current operations functions at Plants 1 and 2, as well as mechanical maintenance and all of instrumentation and electrical maintenance, with the exception of pump station electrical and instrumentation maintenance. A new General Services Administration (GSA) Department is proposed to be formed with Ed Hodges as department head. GSA will include Collections, Information Technology and Facilities Maintenance (Auto Shop, Paint Shop, Rebuild Shop and the new CNG gas station). The contract for security services will also be managed by GSA The restructuring will be included in the 1996-97 budget and will allow increased operational efficiency, cross-training and better use of staff resources. The restructuring was included in the Ernst & Young recommendation, but is even more important due to privatization issues. Report of Assistant General Manager -Administration The Assistant General Manager of Administration Judy Wilson announced that in trying to improve efficiency at the Districts, a strong Management Audit Program will be underway. Greg Mathews, Principal Administrative Analyst, who recently worked on the Performance Measurements, is currently working for Judy on management studies. Department Heads have been invited to request management studies if they think they will improve their management efficiency and productivity. An Internal Management Audit Team is being formed and will be trained in management audit analytical techniques. There will be an application process with two or three individuals being chosen per quarter to work with Judy and Greg. Judy further described the qualifications and resulting benefits to the various departments and individuals to be chosen to work '\ ,,---..__ Minutes of Finance, Adm .. ,.' and Human Resources Committe"-' Page 3 April 10, 1996 on the team, once they have acquired these new skills. This new program will be implemented in the upcoming year. Report of Assistant General Manager -Operations The Assistant General Manager of Operations reported on the current reorganization affecting the Districts' Engineering and Technical staff; updated the Committee on the status of the County Bankruptcy; and briefed the Committee on clean-up items concerning the landfills. The Districts received the Plan of Adjustment from the County and is currently evaluating it. Ballots have to be returned to the County by April 29. Recommendations on the Plan of Adjustment will be brought before the Joint Board this month for action to meet the April 29 deadline. Blake reviewed the issues before the Option A and Option B participants involved in the Plan of Adjustment decisions. He further updated the Committee on the Merrill Lynch litigation. Blake advised that staff is cleaning up the details of the invoices received from the various consultants who worked on the Landfill acquisition. There are three principals involved, Clements Environmental, Saybrook Capital and Price Waterhouse. The Districts is in the middle of a dispute with Saybrook and Price Waterhouse regarding their hourly fees. The hours seem reasonable, but the rates are much higher than what is normally paid for Financial Advisors. In response to the Committee, Blake advised that staff is drafting a second letter to the County's Chairman of the Board in an effort to have our $100,000 refunded, but is making sure that all the facts supporting the $100,000 are clear and accurate, and the tone of the letter is not confrontational. Expenses that the Districts have incurred may be included in the letter. (d) Report of the Director of Finance/Treasurer Gary Streed updated the Committee on the status of the Budget process, advising that all divisions received budget manuals and were given training sessions. The Budget Committee representatives from each division had sit-down meetings with Don McIntyre to go over their budgets. Staff is in the process of preparing a reduced budget from the previous 1995-96 Budget . The Budget recommendations will be brought to the June 12 FAHR Committee meeting. Staff received five proposals from reputable software firms and will be making site visits in the next month. Final responses from the bidders are expected in early May. In the second week of May, staff will be observing ,,..--"\ ,---,. \ Minutes of Finance, Adm .. ,.' and Human Resources Committe1;.. 1 Page4 April 10, 1996 (e) (f) vendor demonstrations. A recommendation will be brought to the June 12 FAHR Committee meeting. Gary Streed updated the Committee on the status of the Districts' Certificates of Participation (COPs). Mr. Streed advised that there was a dip in rates in the middle of March on the borrowing, and returns on investments were a little worse due to the fluctuations on Wall Street during that month. Report of the Director of Human Resources The Acting Director of Human Resources had no report. Report of the Director of General Services Administration The Director of General Services Administration had no report. (g} Report of General Counsel General Counsel reported the need for a closed session at the end of the meeting. (5) APPROVAL OF MINUTES It was moved, seconded and duly carried to approve the draft minutes of the March 13, 1996, meeting of the Finance, Administration and Human Resources Committee. (6) OLD BUSINESS FAHR95-37 Consideration of motion to receive and file Quarterly Status Matrix from Ernst & Young Administrative Function Review. Gary Streed, Ed Hodges and Mike Peterman briefly reviewed the items enumerated in the Status Matrix pertaining to the Finance, Human Resources and Information Technology Departments and divisions. A significant number of goals were completed and those items that have not been completed were highlighted. Staff will continue to update the Committee on their progress on a quarterly basis. After discussion on this item, it was moved, seconded and duly carried to approve staffs recommendation to receive and file the Status Matrix. Minutes of Finance, Adm .. ,.' and Human Resources Committeb ' Pages April 10, 1996 (7) NEW BUSINESS (Please Note: Though the following items were acted on in another sequence, the minutes will reflect them in numerical order for tracking purposes.) FAHR96-23 Consideration of motion to receive and file Treasurer's Report for the month of February 1996. The month ended February 1996 Performance Monitoring Reports for Liquid and Long-term Operating Monies indicated that total investments amount to $357,876,613. All Investment Policy requirements are being complied with and performance to date exceeds the index rates. There was no discussion on this item. It was moved, seconded and duly carried to approve and forward this report to the Joint Boards. FAHR96-24 Consideration of motion to adopt policy allowing staff to make supplier name changes to Board-approved purchases. Mr. Streed requested that staff be given the authority to make supplier name changes to Board-approved purchases in the event of supplier assignments, sales or reorganizations, as long as other terms and conditions of the contracts remain the same. Previous practice required that any change to a purchase approved by the Boards be made with another Board action. This old practice required significant effort in the Board Secretary's office. Staff's request concurs with the Ernst & Young recommendation. Staff will be working with General Counsel reviewing and combining the purchasing resolutions (Resolutions 86-81, 95-9 and 95-62) that govern the purchasing policies and practices and will include the name change procedure. After brief discussion on this item, it was moved, seconded and duly carried to approve staff's recommendation. FAHR96-25 Consideration of motion to approve 1996-97 Sewer Use. Connection Fee. and Annexation Fee recommendations. Staff recommended that 1996-97 sewer use fees be maintained at the 1995-96 levels, and that annexation fees and connection fees be automatically increased on July 1, based upon the change in the Engineering News Record Construction Cost index for the preceding March-to-March time period, and in accordance with the Districts' Board-approved annexation fee policy resolutions approved in 1991 . After a brief discussion on this matter, it was moved, seconded and duly carried to approve staff's recommendation that the 1996-97 user fees remain unchanged from the 1995-96 rates. It was further moved, seconded and duly carried to allow Minutes of Finance, Adm,,,: and Human Resources Committet. Page6 April 10, 1996 the connection fees/the capital facilities connection charge, to increase in accordance with the Engineering News Record Los Angeles Index, pursuant to the adopted Resolutions. The Committee suggested that Director Debay's concern regarding connection fees for a Senior project in her District be brought before the Joint Board. FAHR9 6-26 Consideration of motion to accept staff's recommendation regarding future funding of Management Performance Review Program. Judy Wilson introduced Dawn McKinley, Sr. Human Resources Analyst, who provided a slide presentation and gave an overview of the MPRP process and past Board and FAHR Committee actions relative to the process. A plan to improve the MPRP, including extensive training to managers and supervisors, was developed to ensure that the FY96-97 5.0 percent Target Merit Pool Fund would be distributed to provide incentive for meritorious performance. This 5.0 percent merit fund will be distributed as a non-base building bonus, will not become part of an employee's base salary, and would be in addition to the already authorized 3.0 percent fund which would be used to provide a cost-of- living adjustment to those employees whose performance had at least met expectations. The improved MPRP pay for performance program can play a vital role in increasing productivity and improving the quality of the service provided by the Districts as long as future funding is made available for the program. During discussion staff advised this would be brought back to the Committee. The Committee directed staff to look at lowering the cap on the merit pool bonus. It was also requested that the percentages be identified in dollar amounts. After considerable discussion, it was moved, seconded and duly carried to receive and file this information only report. (8) CLOSED SESSION General Counsel reported to the Committee the need for a closed session, as authorized by Government Code Section 54956. 9 to discuss and consider two items needing immediate attention that arose subsequent to the publication of the agenda. He reported that these items could be added pursuant to Government Code Section 54954.2(b) upon a two-thirds vote of the Directors. No other items would be discussed or acted upon. It was moved, seconded and duly carried that the pending matter of litigation entitled, Sebastiano Serrantino v. County Sanitation Districts, Orange County Superior Court Case No. 737044, be added to the agenda for discussion, as Item No. 8(b)(1 ). •·'\ _.,,,....... Minutes of Finance, Adn .... ! and Human Resources Committe .... Page 7 April 10, 1996 It was moved, seconded and duly carried that the pending matter of litigation entitled Louis Sangermano v. County Sanitation Districts et. al., Orange County Superior Court Case No. 732680, be added to the agenda for discussion, as Item No. 8 (b)(2). The Committee convened in Closed Session at 7:30 p.m. At 8:00 p.m. the Committee reconvened in regular session. Confidential minutes of the closed session held by the Finance, Administration and Human Resources Committee have been prepared in accordance with California Government Code Section 54957 .2 and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. No actions were taken re Agenda Items Nos. 8(b)(1) and (2). (9) OTHER BUSINESS, IF ANY None. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING No reports were requested. (11) 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, May 8, 1996. (14) ADJOURNMENT The meeting was adjourned at approximately 8:00 p.m. Lenora Crane Finance, Administration and Human Resources Committee Secretary J:\WPDOC\FIN\CRANE\FPC.MTG\FAHR.96\1996.MINIMFAHR4.96 ST ATE 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 April 10, 1996, was duly posted for public inspection in the main lobby of the Districts' offices on April 4, 1996. IN WITNESS WHEREOF, I have hereunto set my hand this 10th day of April, 1996. Penny Kyle, Secret Sanitation Districts County, California Posted: ~ f , 1996, ct{ : 0V By:~~ ~ J:\WPDOC\FIN\CRANE\FPC.MTG\FAHR.96\CERT.POS\CERTP04.96 April 4, 1996 DISTRIBUTION FAHR COMMITTEE MEETING PACKAGE COMPLETE PACKAGES 45 Full Packages Committee 11 Press 1 Tom Woodruff 1 Terry Andrus 1 Donald F. McIntyre 1 Blake P. Anderson 1 Judith A. Wilson 1 Corina Chaudhry 1 Greg Mathews 1 Patty Steeves 1 Mike Peterman 1 Linda Eisman 1 Ed Hodges 1 Steve Hovey 1 Penn~H(~le 2 David Ludwin 1 Bob Ooten 1 Gary Streed 1 Nancy Wheatley 1 Dan Dillon 1 Jeff Esber 1 Steve Kozak 1 Cymantha Atkinson 1 Mike White 1 Brad Cagel 1 Michelle Tuchman 1 Pat McNelly 1 Dan Tunnicliff (Bldg. 6) 1 Gail Cain 1 Extras 5 Notice.& Agenda Only: (13) Posting 1 Jean Tappan (INCLUDE MINS.) 1 Angela Holden 1 Clarice Marcin 1 Frankie Woodside 1 Cindy Griego-Sands 1 Fawn Elizondo 1 Guard Shack (Mark Esquer) 1 Extras 3 Treasurer's Report: Ron Zenk, Dist. 14 phone: (714) 962-2411 n,elftng atjdress: P.O. Bo,-8127 Rnn:italn Valley, CA 92728-8127 street; address: 10844 Ellis Avenue Rlllt'ltsln Valley, CA 92708--701 8 Member Agenc es • Cities Anaheim Brea BIIE/na Park Oypres,s Fauntaln Valley Fuller.um Huntfngton Beach frVina La Habra La Parma Los A/amltcs Newport Beach Orange P/eoer,1/a Santa Ana Seel Seaoh Stencdn Tusf'iin Vl/la Park Yorba Linda County of Orange Sanitary Distrlots Coses Me~a Garden Grove Midway Cit;,; Water Oistrlctis /!'Vine Ranch ~, ~ COUNTY SJ--\1~ITATION DISTRICTS OF •RAI\IGE COUNTY, CALIFORNIA April 4, 1996 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, APRIL 10, 1996-5:30 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. A Public Wastewater and Environmental Management Agency Committed ta Protecting the Environment Since 1954 April 4, 1996 FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE TENTATIVELY SCHEDULED MEETING DATES Finance, Administration and Human Resources Committee Meetings Joint Board Meetings April April 10, 1996 April 24, 1996 May May 8, 1996 May 22, 1996 June June 12, 1996 June 26, 1996 July July 10, 1996 July 24, 1996 August None Scheduled August 28, 1996 September September 11, 1996 September 25, 1996 October October 9, 1996 October 23, 1996 November None Scheduled November 20, 1996 December None Scheduled December 18, 1996 January January 8, 1997 January 22, 1997 February February 12, 1997 February 26, 1997 March March 12, 1997 March 26, 1997 CSDOC O P.O. Box 8127 • Fountain Valley, CA 92728-8127 • (714) 962-2411 ~- April 10, 1996 AGENDA FINANCE, ADIVUN'ISTRATION AND MUMAN 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. APRIL 10. 1996;. 5:30 P.M. : ................................................................................... J ........................................................................................................... -................................. i.. ............. '••······· .................. 2 ............. : • In accordance with the requirements of California Government Code Section 54954.2, this I agenda has been posted in the main lobby of the Districts' Administrative Offices not less than 72 ·l:=.· 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 i=:. emergency item or that there is a need to take immediate action which need came to the attention of :::i. the Committee subsequent to the posting of the agenda, or as set forth on a supplemental agenda i. . posted in the manner as above, not less than 72 hours prior to the meeting date. 1 ••• '••··--·---.. 1,, ...................... i.. ........................................................................................... , ........ ,. 4 ....................................................................................................................................... • ( 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 ). April 10, 1996 (4) The Committee Chairman, General Manager, Assistant General Manager(s), Director of Finance/Treasurer, Director of Human Resources, Director of Information Technology, and General Counsel may present verbal and/or written reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee Members. (a) Report of Committee Chair (b) Report of General Manager • Presentation on proposed restructuring. (c) Report of Assistant General Manager -Administration ( d) Report of Assistant General Manager -Operations (e) Report of Director of Finance/Treasurer (f) Report of Director of Human Resources (g) Report of Director of Information Technology (h) Report of General Counsel (5) Approval of draft Finance, Administration and Human Resources Committee Minutes for Meeting of March 13, 1996. {6) Old Bus.iness. FAHR95-37 (7) New Business. FAHR96-23 FAHR96-24 FAHR96-25 FAHR96-26 Consideration of motion to receive and file Quarterly Status Matrix from Ernst & You~g Administrative Function Review. (Gary Streed, Mike Peterman, Steve Hovey) Consideration of motion to receive and file Treasurer's Report for the month of February 1996. (Gary Streed) Consideration of motion to adopt policy allowing staff to make supplier name changes to Board approved purchases. (Gary Streed) Consideration of motion to approve 1996-97 Sewer Use, Connection Fee, and Annexation Fee recommendations. (Gary Streed) Consideration of motion to accept staff's recommendation regarding future funding of Management Performance Review Program. (Mike Peterman, Dawn McKinley) -2- April 10, 1996 (8) Closed Session. Closed Session: During the course of conducting the business set forth on this agenda as a regular meeting of the Committee, the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or ~ potential litigation; (c) employee actions or negotiations with employee representatives; or j .: !====:=· which are exempt from public disclosure under the California Public Records Act, may be ,l==== 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. ·:..................................................... .. .. 1 ....................... ,, ............................... /" ................... , ................................................................... ,••··········---· ;-----------~: (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. (9) Other business, if any. (10) Matters which a Director would like staff to report on at a subsequent meeting. ( 11) Matters which a Director may wish to place on a future agenda for action and a staff report. ( 12) Consideration of upcoming meeting dates and items to be discussed at those meetings. (13) Adjourn. •;_•••-•·· .......................... ,•-·-···· 1••··•1"•····.._. ................................... i.. .............. o,1 ................. ' ......................... -.............................................. J ..................... .. ,· Notiee to Committee Members: 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 Committee Chair or Secretary ten days in advance of the Committee meeting. Committee Chair: George Brown (310) 431-2185 ! Secretary: Lenora Crane (714) 962-2411, Ext. 2501 j , (714) 9~2-3954 (FAX) ........................................ ,. ......................... , ......................... ,. ........ _,. ........ -...................... _ ........................................................................................................ '••· ............. '• J:IWPDOCIFINICRANEIFPC.MTGIFAHR.96\AGENDA.96\AGENDA4.96 • -3- ROLL CALL SHEET FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING DATE: April 10.1996 TIME: 5:30 P .M. ADJOURN: __ _ 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) ........................ . -------·· ........................ . STAFF DON MCINTYRE, General Manager .............. . BLAKE ANDERSON, Asst. Gen'I. Mgr. -Ops. . ..... . JUDITH WILSON, Asst. Gen'I. Mgr. -Admin. . ...... . ED HODGES, Director of Maintenance ............. . STEVE HOVEY, Director of Info. Srvs .............. . DAVID LUDWIN, Director of Engineering .......... . BOB OOTEN, Director of Operations .............. . MIKE PETERMAN, Acting Director of Human Res .... . GARY STREED, Director of Finance .............. . MICHELLE TUCHMAN, Director of Communications .. NANCY WHEATLEY, Director of Tech. Srvs. . ...... . STEVE KOZAK, Financial Manager ............... . GREG MA THEWS, Principal Administrative Analyst .. . MIKE WHITE, Controller ........................ . LENORA CRANE, Committee Secretary. . ......... . -----------............... . -----------............... . -----------............... . OTHERS TOM WOODRUFF, GEN'L. COUNSEL ............ . ------------............. . ------------............. . c: Penny Kyle ROLL4.96 Format a Written Report •Overheads 0 Slides 0FllpCharts Originator Cia'lfS'1e..,p • 1 Department Head Sign or/~}(} 0 / / ( y.__ {'{ -= Ga~treed Anticipated Time 6 min. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR APRIL 10, 1996 {4){d): Director of Finance Report Summary Since June 1995, the daily rate COP program remarketing agents have been PaineWebber for the Series "An 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 graphs show 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. The rates decline to prior levels immediately in the following month, as they did again this year. 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:\WPOOC\FlN\CRANE\FPC.MTG\FAHR.96\COVERS.961DOF•.96 (") "'ll ii3 al C "C < RATE(%) II) ~ )> al --t C. :::0 m ),, 0 -I\) (.,) ~ tn (1) ~ --t 8 0 0 8 0 0 8 m 0 0 0 0 "Tl :I: 04-0ot-95 I I I ~ I I I I I :r en II) I I :, --t I I I 0 (0 11-Oct-95 1 I I I I _CD (1) I I I I I 0 ~ 0 ~ 18-Oct-95 -1.. I I I •• I + I ... I -I co co (1) 0 25-Oct-95 t r I ~i t I f I ex, '1 I I I' I w co I I I i' I I I I I I 01-Nov-95 08-Nov-95 15-Nov-95 + 22-Nov-95 I I I (") "'ll I I I DI 29-Nov-95 I I I en 5· CD I I I C ~ I I I 0 I I I c-06-Dec-95 I I I (") c-I I I (1) ... I I I (") 13-Dec-95 I I 0 I I I I "ti + I I 20-Dec-95 I I ~ I I I I '-I I ---t ,,, I I m s: 27-Dec-95 I I I 0 I I I :I: ca I I I en DI 03-Jan-96 I I I :, I I I ---t 0 10-Jan-96 I I I I ~ + I I I I I I I I I I I I I I I Al 17-Jan-96 I I I I I ),, I I ' I I m i5 I I I I I "ti CJ) I I I I I 0 :E 24-Jan-96 I I I I I DI I I I ' I Al "C I I I I I ---t I I I I I 31-Jan-96 I t i 07-Feb-96 CJ) 0 ~I (1) 14-Feb-96 :, CJ) !J 21-Feb-96 _ 28-Feb-96 06-Mar-96 13-Mar-96 20-Mar-96 27-Mar-96 ..__d ... .;;__..,., ... • t r FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR APRIL 10, 1996 (5): Consideration of motion to approve the draft Finance, Administration and Human Resources Committee Meeting Minutes of March 13, 1996. Summary Attached is a draft of the Finance, Administration and Human Resources Committee meeting Minutes of March 13, 1996, for approval by the Committee. Staff Recommendation It is recommended that the minutes of the March 13, 1996, Finance, Administration and Human Resources Committee meeting be approved. These minutes were submitted to the Joint Boards at their March 27, 1996 meeting, and no further action is required. J:\WPDOC\FJN\CRANE\FPC.MTGIFAHR.96\1996.MIN\CVRMIN4.96 County Sanitation Districts of Orange County, California P.O. Box 8127 • 10844 Ellis Avenue Fountain Valley, CA 92728-8127 Telephone: (714) 962-2411 DRAFT MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Wednesday, March 13, 1996. 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 March 13, 1996 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 John C. Cox, Jr., Joint Chair Jan Debay James Flora John M. Gullixson Wally Lynn Roger R. Stanton, Vice Chair William G. Steiner Peer Swan Committee Directors Absent: Burnie Dunlap Thomas Saltarelli Staff Present: Donald F. McIntyre, General Manager Blake P. Anderson, Assistant General Manager Judith A. Wilson, Assistant General Manager Steve Hovey, Director of Information Technology Mike Peterman, Acting Director of Human Resources Gary Streed, Director of Finance Michelle Tuchman, Director of Communications Nancy Wheatley, Director of Technical Services Michael D. White, Controller Steve Kozak, Financial Manager Linda Eisman, Training Manager Terri Josway, Safety & Emergency Response Mgr. Lenora Crane, Committee Secretary Others Present: Tom Woodruff, General Counsel Howard Slavin, Attorney (2) APPOINTMENT OF A CHAIRMAN PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS No comments were made. Minutes of Finance, Ac.. .1. and Human Resources Commit 1 Page2 March 13, 1996 (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) (b) (c) (d) (e) Report of the Committee Chair The Committee Chair had no report. Report of the General Manager The General Manager informed the Committee that Gary Hasenstab has terminated, and Mike Peterman has been appointed as Acting Director of Human Resources. Report of Assistant General Manager -Operations The Assistant General Manager of Operations indicated he would have a verbal report later in the meeting when the landfill item is addressed. Report of Assistant General Manager -Administration The Assistant General Manager of Administration had no report. Report of the Director of Finance/Treasurer Finance Director/Treasurer Gary Streed updated the Committee on the status of the Districts' Certificates of Participation (COPs). Mr. Streed advised that the variable rates have declined since the staff report was mailed; dropping below 3% to 2.60% and 2. 75%. Mr. Streed also informed the Committee that staff will be receiving RFPs on the Financial Information System on Tuesday and will report back to the Committee with the results at the next meeting. Report of the Director of Human Resources The Acting Director of Human Resources had no report. (f) Report of the Director of Information Technology The Director of Information Technology had no report. (g) Report of General Counsel General Counsel indicated he would present a report during the closed session. , Minutes of Finance, Adm,n. and Human Resources Committee Page3 March 13, 1996 (5) APPROVAL OF MINUTES It was moved, seconded and duly carried to approve the draft minutes of the February 14, 1996, meeting of the Finance, Administration and Human Resources Committee. (6) OLD BUSINESS FAHR96-04 Consideration of motion to approve Resolution No. 96-, extending benefit coverage for regular employees working a reduced work week. This item was sent back to Committee from the Joint Boards' February 28, 1996 meeting. Mr. Peterman restated staffs recommendation to: "Provide part-time employees with entitlement to employee benefits prorated on the basis of 75% if the employee works on average between 30 and 40 hours per week; and 50% if the employee works between 20 and 30 hours per week. Amend the provisions of Resolution 95-105 to allow the._pr:oration of benefits to part-time employees, and authorize staff to amend MOUs, health plan Summary Plan Documents, and other administrative policy and procedure manuals as necessary." Mr. Peterman handed out a revised attachment which illustrated "Cost of Part-time Benefits and Areas of Savings by Offering Part-time Benefits," and responded to the Committee's questions. The benefit factor is 26%, not 24% as indicated on the original attachment. General Counsel Tom Woodruff clarified the legalities of establishing a benefit program for part-time employees, and explained the difference between a contract with an independent contractor and a personal services contract with a regular employee working a reduced work week. After several motions and amendments to the motions, it was moved, seconded and unanimously approved to give staff the discretion, on a case-by-case basis, to approve the staff recommendation on a prorated basis through the use of personal services contracts. FAHR96-15 Consideration of motion to review, approve and file the Mid-Year Report. prepared by staff for the period ending December 31, 1996. Mike White, Controller, stated that last month staff presented to the Committee the Districts' first comprehensive Mid-Year Report for the period ending December 31, 1995. Because of time constraints, the Committee asked that the report be resubmitted at the March meeting. The full report was presented to the Joint Boards on February 28, 1996. Starting with a brief review, Mr. White stated the report consolidates both the financial and operational accomplishments of the Districts at the midpoint of the 1995-96 fiscal year. Mr. White reviewed the major categories of the report and answered questions from the Committee. Vice Joint Chair Peer Swan asked that future reports include side- by-side line item expense comparisons by quarter. I Minutes of Finance, Admin. and Human Resources Committee Page4 March 13, 1996 After discussion, it was moved, seconded and duly carried to approve and file the 1995-96 Mid-Year Report. (7) NEW BUSINESS FAHR96-19 Consideration of motions to receive and file staff report regarding review of Districts' risk management and insurance activities; direct staff to solicit formal proposals for general liability insurance through Robert F. Driver Associates and from the Special Districts Risk Management Authority (SDRMAl and the California Sanitation Risk Management Authority (CSRMA): evaluate the proposals and return to the FAHR Committee with recommendations for a general liability insurance program as part of the FY 1996-97 budget; direct staff to prepare a Risk Management Work Plan for FY 1996-97, and keep the Committee informed with periodic progress reports. Steve Kozak, Financial Manager, g~ve ·an overvieW of the Districts' risk management insurance program, practices and at~tivities. He re·ported on current industry benchmarks and made specific recommendations for short-term improvements and a proposed work plan to guide future review and monitoring of the program. It was requested that staff look into Stop-Loss coverage in the $250,000 to $500,000 range. After discussion, it was moved, seconded and duly carried to approve staffs recommendation. FAHR96-20 Consideration of motion to receive and file staff report regarding preparation for possible financing of Solid Waste Management System Acquisition: and to direct staff to develop and circulate Request for Proposals to assemble a solid waste financing team so that, if needed, the Districts is ready to proceed immediately. In preparation of the potential landfill acquisition, a team to develop the capital financing program is required which would consist of a Financial Advisor, Underwriter(s), Bond Counsel and Solid Waste Engineer. The formation of the financing team is contingent on the County's consideration of the MOU. If the County responds favorably to the MOU and its terms, then a 60-day closing period will be entered into to finalize the deal, otherwise the process will end. Assistant General Manager of Operations Blake Anderson updated the Committee on developments concerning the landfill acquisition and his presentations to cities, their staff and their counsels. Blake and his team attended a meeting of the County Board of Supervisors on March 12, 1996. The Supervisors discussed the issue of tipping fees and voted 5-0 to lower tipping fees from $35 per ton to $27 per ton. Blake indicated that after considerable discussion, he made a presentation regarding the Districts' proposal. The Supervisors then went -\ I Minutes of Finance, Admin. and Human Resources Committee Page 5 March 13, 1996 (8) into Executive Session and referred the matter back to County staff requesting the item be brought back on March 19 with their recommendations. No vote was made on the Districts' offer, since this was a general discussion, however, it was clear during the discussion that three Supervisors did not like the Districts' offer, indicating it was not generous enough. Directors Steiner and Stanton both commended Blake Anderson and his staff for the excellent due diligence they put forth regarding the acquisition. Joint Chair John Cox advised that there will be a Landfill Ad Hoc Committee meeting on March 20, 1996, and a formal recommendation will be made at that time regarding whether to proceed with pursuing the landfill acquisition. After several motions and amendments to the motions, it was moved, seconded, and duly carried with 5 ayes, 3 nays, and 1 abstention to: Authorize staff to prepare RFPs and form a financing team to stand ready to go forward, if needed, to finance the landfill acquisition. FAJ-1896-21 Consideration of motion to receive and file Treasurer's Report for the month of January 1996. The month ended January 1996 Performance Monitoring Reports for Liquid and Long- term Operating Monies indicated that total investments amount to $363,038,032. All Investment Policy requirements are being complied with and performance to date exceeds the index rates. It was moved, seconded and duly carried to approve and forward this report to the Joint Boards. FAHR96-22 Staff Summary Report on the organization of the Communications Division, the results of the Internal Communications Audit and an overview of new and/or expanded programs to reach both internal and external audiences. Michelle Tuchman, Communications Director, gave a slide presentation and reported on the organization of the Communications Division, how the division is structured, the services the division provides and the efforts underway to reach both internal and external audiences. Michelle reviewed an Internal Communications Audit made of 260 Districts employees and its results. Another audit will be conducted in one year. It was moved, seconded and duly carried to receive and file this report. CLOSED SESSION The Chair reported the need for a closed session as authorized by Government Code Section 54956.9(a) to discuss and consider the item that is specified as Item (8)(b) on the published Agenda. The Committee convened in closed session at 7:07 p.m. pursuant to Government Code Section 54956.9(a). Confidential Minutes of the Closed Session held by the Committee have been prepared in accordance with California Government Code Section 54957.2 and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. ) I Minutes of Finance, Admm. and Human Resources Committ~e Page6 March 13, 1996 (9) OTHER BUSINESS, IF ANY None. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING No reports were requested. (11) 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 MEETtNGS .... , "-- The next Committee meeting is scheduled for Wednesday, April 10, 1996. (14) ADJOURNMENT The meeting was adjourned at 8:00 p.m. ~~ Finance, Administration and Human Resources Committee Secretary J:\Wl1DOC\FIN\CRANE\FPC.MTG\FAHR.96\1996.MINIMFAHR3.96 ~ D Written Report •Overheads •Slides D Flip Charts Originator __ _ _ .. _. .. ,@ Anticipated nrne __ _ FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR95-37: Summary: AGENDA FOR APRIL 10, 1996 Consideration of Motion to receive and file Quarterly Status Matrix from Ernst & Young Administrative Function Review The Ernst & Young reviews of the Human Resources and Finance Departments were presented to the Executive Committee in February and July 1995. The Human Resources Department includes divisions for Administration, Human Resources and Training, and Safety and Emergency Response. The Finance Department is currently made up of functional divisions for Administration and Finance, Accounting, and Purchasing and Warehousing. The Information Technology Department was formed in 1995-96 and separated from the Finance Department while the Ernst & Young report was being completed. The Information Technology Department includes divisions for Administration, Hardware Support and Software and Plant Automation Support. The Ernst & Young recommendations for all three departments, which are the bulk of the Administrative organization, have been combined into one Status Matrix for the FAHR Committee to review and monitor progress. Staff will update and submit this report on a quarterly basis. Staff Recommendation Receive and file Status Matrix. J:\WPDOC\FIN\CRANE\FPC.MTG\FAHR.96\COVERS.96\FAHR95.37B 1. 2. 3. 4. 5. 6. 7. 8. 9. April 10, 1996 FINANCE, ADMINISTRATION & HUMAN RESOURCES COMMITTEE STATUS MATRIX ERNST & YOUNG ADMINISTRATIVE FUNCTION REVIEW INFORMATION TECHNOLOGY \&At "jg;,:J·l!:l :li~,ij'~iji~j~~~m:~.~gi:i.l\~§;;;;;1:;/;ji:jl1i!:i!;il1:1i:il![liI~ , /t&· i':' .: :~-:ii,_;r~:~ ::: -:· .. ::: ;. ·:~:r=:t/]ft> :: ... :~i~t9'~:.'at1~~~,ffl~n* (:Ti'l::·I,:· _-/ -.,'..'.::;,_,~~-i;:-{) Develop a Charter, Mission and Vision for Information Systems. Finalize the RFP for the Strategic System Information Plan (SISP). Perform the SISP study. Review staffing and organization needs based on charter and SISP. Develop standards for all PC's and software products. Develop a plan to and introduce the standards over a period of time to minimize disruption, maximize investment, and allow training. Survey users to determine the need for and costs and benefits of information technology training. Study impact of NT File Server. Implement NT File Server. -1- Completed. Completed. The SISP will be performed by staff. 12/96 I The SISP effort is on hold until the completion of a Management Study of the IT Department, to begin 4/1/96. 5/96 I Results of Management Study will be available by May 1996. Staffing and organizational needs will be addressed. Ongoing I PC purchases are limited to vendors recommended by the Gartner Group Tier 1 and Tier 2 suppliers. Configuration standards are reviewed every 6 months. 6/96 I Procurement being performed by utilizing state contract pricing via CMAS schedules. Schedule for cycling current inventory being developed. 11/96 I Will be completed in conjunction with new training staff in Human Resources. Results will be incorporated in department training plans due 12/96. Completed. 6/97 I Implementation will be phased. Server installation to be complete 4/2/96. Departments will be converted one at a time over the next 12 to 18 months. April 10, 1996 FINANCE, ADMINISTRATION & HUMAN RESOURCES COMMITTEE STATUS MATRIX ERNST & YOUNG ADMINISTRATIVE FUNCTION REVIEW FINANCE & ACCOUNTING 1. 2. Select and Implement New Financial Information System. Develop and Maintain Standard Financial Policies and Procedures. 3. Improve Monthly Accounting Close Cycle Times. 4. Improve Budget Process and Organizational Focus. 5. Improve Payroll Process. 6. Outsource Deferred Compensation Plan (457). 7. Update Cost Allocation Plan. 8. Develop Internal Audit Program. 9. Improve Fixed Assets Process. 10. Eliminate Large Petty Cash Fund. 11. Improve User Billing Process. -2- 9/30/97 I Five (5) preliminary proposals received 3/19/96. Secondary proposals due April 22. Staff recommendation planned for May FAHR meeting. 1/31/96 I Revisions are underway where appropriate. New goal is 6/30/96. 11/30/95 I Ongoing efforts. Monthly reports now available on 10th working day. Goal is 5 working days with new F.I.S. 5/31/96 I Ongoing. Staff has been added, budget coordinators added to process. All divisions have met with GM on '97 Budget. 6/30/96 I Coordinate along with selection and implementation of F .I.S. Payroll moved to Accounting July 95. 1/31/96 I Administration moving to Lincoln National. 6/30/96 I Staff has reviewed and modified plan and allocations. 6/30/96 I Ongoing. Function will report to G.M. 2/28/96 I Identifying specific fixed asset problems, road blocks and solutions. Completed. 3/31/96 I Have begun to move several commercial accounts to actual billing. Additional changes being evaluated. April 10, 1996 FINANCE, ADMINISTRATION & HUMAN RESOURCES COMMITTEE STATUS MATRIX ERNST & YOUNG ADMINISTRATIVE FUNCTION REVIEW PURCHASING & WAREHOUSING ' 1. Implement and Maintain a Formal Supplier Rating Program. 5/96 Developing a manual supplier performance program until 2. Align Buyers with Inventory Classes. 3. Utilize Blanket Purchase Orders for Inventoried Items. 4. Increase Formal Bid Threshold. 5. Implement and Report Key Purchasing Performance Metrics. 6. Contract with Suppliers of Low Cost Stock Items to Maintain Bins at Point of Usage. 7. Categorize Inventory by ABC Classes. 8. Initiate a Cycle Counting Program to Measure/Maintain Inventory Accuracy. 9. Review Requirement for Expanded Plant 2 Warehouse. 10. Aggressively Pursue Reduction of Excess and Obsolete Inventory. 11 . Develop and Implement a Data Retention/Maintenance Procedure. 12. Generate ABC, Excess Inventory and Obsolete Inventory Management Reports. 13. Implement and Report Key Warehousing Performance Metrics. 14. Select and Implement New Finance System (Inventory and Purchasing). -3- F.I.S. supports on-line capabilities. Completed. 7/96 I Current F.I.S. does not support. Implementing manual Blanket Order System. Completed. 3/97 I In development stage. New F.I.S. system will facilitate metrics. 5/96 I Hardware (nuts/bolts) and paper products bids in process. 4/96 I Awaiting inventory report by data processing consultant. 5/96 I This program will be implemented once ABC classes are established. Completed. Ongoing I Computers, meters, packing, etc., are approved for inventory/surplus disposal program. Completed. Ongoing I ABC report forthcoming. Excess and obsolete inventory reports ongoing. 12/96 I Metrics and methods being developed. ABC program, new F.I.S. system and surplus disposition program will improve. 9/96 I Early stages. Proposals received. ...,) FINANCE, ADMINISTRATION & HUMAN RESOURCES COMMITTEE STATUS MATRIX ERNST & YOUNG ADMINISTRATIVE FUNCTION REVIEW HUMAN RESOURCES & TRAINING 1. Develop integrated Human Resource policies and procedures Completed. and maintain on an annual basis in accordance with resolution amendments. 2. Revise all Districts' Classification Specifications and review on a three-year basis. 3. Improve the effectiveness of the Management Performance Review Program (MPRP) in managing and rewarding performance, and providing performance review training to managers and supervisors during the 3rd quarter. 4. Evaluate alternative base pay administration systems including broadbanding and alternative reward strategies such as variable pay in a staff report; present final report to Finance Administration and Human Resources Committee. 5. Implement a quality program of comprehensive training in management, supervisory, technical, safety and other areas. 6. Maintain recruitment turnaround of 30 days for outside non- exempt and 65 days for outside exempt positions, and 30 days for all promotional positions. 7. Conduct the welcome and tour day activity of the new hire orientation program bi-monthly. 8. Provide sexual harassment training by an outside source; evaluate the effectiveness of the training by monitoring formal and informal complaints in a quarterly report. 9. Complete a revised Employee Handbook. 1 O. Develop and implement meaningful Human Resources performance metrics and reporting criteria. -4- Completed. 4/30/96 I On schedule. Training dates are scheduled in April for all management and supervisory personnel. Report on April FAHR agenda. 6/30/96 I On schedule. White paper will be presented to the July FAHR Committee. Completed. 12/31/95 I Completed. Problems identified. Major effort will be taken to shorten these turnaround times. Completed. Completed first round. Training is ongoing. Completed. Completed. FINANCE, ADMINISTRATION & HUMAN RESOURCES COMMITTEE STATUS MATRIX ERNST & YOUNG ADMINISTRATIVE FUNCTION REVIEW HUMAN RESOURCES & TRAINING 11. Conduct a customer satisfaction survey of all Human Resource customers and provide appropriate customer service training to all Human Resources staff. 12. Ensure that all employee performance reviews and MPRP reviews are completed in a timely manner. 13. Develop a new hire orientation video which includes new hire information, safety info., and sexual harassment clip. 14. Evaluate the advisability of an employee services program to address issues regarding wellness, child care, cafeteria, and/or ATM's. J:\WPDOC\FIN\CRANEIFPC.MTG\FAHR.96\ST AFFRPT .96\STATSMTX.96 -5- Completed. Completed. 4/30/96 I On schedule. Outline completed. Waiting for input from Communications and Safety. 4/30/96 I On schedule. Cost benefits analysis being conducted. __,I ) \ '\ I Format D Written Report 00varhaads •Slides D Flip Charts .. __ :~~ Anticipated Time 5 min. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR APRIL 10, 1996 FAHR96-23: Consideration of motion to receive and file Treasurer's Report for the month of February 1996. Summary Both Pacific Investment Management Co., PIMCO, and Mellon Trust began their professional external management of our funds in September 1995. In order to give the Directors an opportunity to review the month-end reports available from PIMCO, and to avoid distribution at the meeting, reports from the prior month are included with the agenda. Quarter1y presentations are made to the Committee by both PIMCO and our third- party independent consultant, Callan Associates. The Investment Policy adopted by the Joint Boards on May 24, 1995, includes reporting requirements as listed down the PIMCO Monthly Report for the "Liquid Operating Monies" and for the "Long-Term Operating Monies." All of the Investment Policy requirements are being complied with and performance to date exceeds the index rates. 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 $ 5,424,808 800,235 61,325,177 256,806,041 3,075 33,517,277 $357,876,613 Staff recommends the Committee receive, approve and forward this report to the Joint Boards. J:\WPDOC\FIN\CRANE\FPC.MTG\FAHR.96\COVERS.96\FAHR96.23 April 10, 1996 400 350 300 I 250 0 Q o 200 • I: ~ 150 i 100 50 CSDOC TOTAL CASH & INVESTMENTS 1995 -1996 0 ""--....:-----,C....----+:-----'------"-----"'-----~---+--------,"----_/ June 30 July 31 Aug . 31 Sept. 30 Oct. 30 Nov. 30 Dec. 31 Jan. 31 Feb. 29 J:IWPDOCIFINICRANEIFPC.MTGIFAHR.96\COVERS.96\FAHR96.23 MONTHLY REPORT COUNTY SANITATION DISTRICTS OF ORANGE COUNTY INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ending February 29, 1996) Liquid Operating Monies . 14.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value: Historical Cost: 14.1.2 MODIFIED DURATION Of Portfolio: Ofindex: 14.1.3 1 % INTEREST RATE CHANGE Dollar Imoact (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 Comoliance" 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: $61,659,515 $61 ,711 ,570 ·, ~ .11 .25 $67,825 (.11%) 0% 93% AAA 0% ~ j .43 1.39 --·-·---- .88 .41 MONTHLY REPORT COUNTY SANITATION DISTRICTS OF ORANGE COUNTY INVESTMENT MANAGEMENT PROGRAM Pll\'.lCO'S PERFORMANCE MONITORING & REPORTING (for the month endi'!_g February 29, 1996) Long Term Operating Monies 14.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value: Historical Cost: 14.1.2 MODIFIED DURATION Of Portfolio: Oflndex: 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" RA TING % 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: $264,043,693 $263,065,531 ' -2.5 2.4 $6,601,092 (2.5%) 0% NA AA+ 0% -.76 1.08 ------ .15 -.69 .E!!!!!!fil •Written Report •Overheads •Slides D Flip Charts Ortgina~or ry r Department Head Sign Gary Streed Anticipated Time __ _ FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR96-24: Summary AGENDA FOR APRIL 10, 1996 Consideration of.a policy allowing staff to make supplier name changes to Board approved purchases. Resolution Nos. 86-81, 95-9 and 95-62 govern the purchasing policies and practices at the Districts. Among other things, these resolutions require that purchases in excess of $50,000 must be approved by the Boards of Directors. Past practice at the Districts has been that any change to a purchase approved by the Boards requires another action by the Boards. While these changes are generally on the consent calendar, they do require significant effort in the Board Secretary's office and the Purchasing Division, and may delay payments for up to sixty days. As a part of their review of the Finance Department, Ernst & Young recommended we develop a policy as to " ... when a change is significant enough to warrant Board approval. For example, name changes of suppliers would be approved by the Purchasing Manager, while price or contract terms changes would require final approval of the Board." Staff concurs with Ernst & Young and proposes a change to implement their recommendation. Such a change is a policy issue as current practice has evolved, but is not a part of any controlling resolution. Staff Recommendation Staff and General Counsel will be reviewing and combining the purchasing resolutions in the near future, and will include the name change procedure in the next revision. In the meantime, therefore, staff recommends the FAHR Committee authorize staff to make supplier name changes to Board approved purchases in the event of supplier assignments, sales or reorganizations, so long as other terms and conditions remain the same. J:\WPDOC\FIN\CRANE\FPC.MTGIFAHR.96\COVERS.96\FAHR96.24 ··-·- .E2!m!! •Written Report •Overheads Department Head Sign D Slides D Flip Charts Anticipated Time __ _ FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR96--25: Summary: AGENDA FOR APRIL 10, 1996 Consideration of 1996-97 Sewer Use, Connection Fee, and Annexation Fee recommendations. Each property connected to a sewer system in each of the Districts, except District No. 14, pays an annual sewer use fee which partially finances operating, maintenance and replacement (OM&R) costs used to fund sewerage system improvements. (Properties in District No. 14 are billed by the IRWD.) Each of those Districts, except District No. 13, also receives a share of the ad valorem property tax which is applied to debt service. New development must pay a one-time sewer connection fee which finances capital expansion of the sewerage system. Again, District No. 14 is the exception because IRWD pays its share of capital expansion. Although the Districts have the ability fo increase fees to pay for the rising costs of wastewater services, the staff is sensitive to the continuing economic situation and the very difficult financial problems our member agencies are struggling with. For the last four years, because of the poor economic climate and reduced flows, staff recommended and the Boards agreed not to increase user or connection fees over the 1991-92 rates. In order to do this, certain Districts' programs have been scaled back. In March, the Joint Boards approved a professional services agreement with Camp, Dresser and McKee for consulting services relative to a new strategic plan. This work is divided into two parts, a review of our capital improvement program and determination of financial changes. Because the user fees categories and calculations as well as the magnitude of the capital improvement program will be studied and modified, staff recommends the fees not be increased at this time. Staff Recommendation Staff recommends 1996-97 user fees remain unchanged from the 1995-96 rates, but that connection fees and annexation fees both be allowed to increase in an amount determined by the change in the Engineering News-Record index in accordance with adopted Board policy. J:\WPOOCIFINICRANEIFPC.MTG\FAHR.96\COVERS.96\FAHR96.25 April 10, 1996 STAFF REPORT FAHR96-25: 1996-97 Sewer Use, Connection Fee, and Annexation Fee Recommendations Summary Each property connected to a sewer system in each of the Districts, except District No. 14, pays an annual sewer use fee which partially finances operating, maintenance and replacement (OM&R) costs used to fund sewerage system improvements. (Properties in District No. 14 are billed by the IRWD.) Each of those Districts, except District No. 13, also receives a share of the ad valorem property tax which is applied to debt service. New development must pay a one-time sewer connection fee which finances capital expansion of the sewerage system. Again, District No. 14 is the exception because IRWD pays its share of capital expansion. For the last four years, because of the poor economic climate, staff recommended and the Boards agreed not to increase user or connectioh fees over the 1991-92 rates. In order to do this, certain Districts' programs have been scaled back. Subsequent to the 1992-93 fee adoption, the Governor and State Legislature confiscated a portion of the Districts' property taxes and shifted them to help finance schools. After lengthy deliberations, the Boards of Districts 1, 2, 3, 5, 6 and 7 concluded that they had no really viable alternative but to increase the user fees to make up for the confiscation of 1992-93 property taxes by the state. The total amount shifted by the state was $3.5 million. Although the Districts have the ability to increase fees to pay for the rising costs of wastewater services, the staff is sensitive to the continuing economic situation and the very difficult financial problems our member agencies are struggling with. The General Manager has directed staff to prepare a budget for 1996-97 that will allow sewer use fees not to be increased. These are the same rates adopted for 1995-96. CSDOC • P.0.Box8127 • FountainValley,CA92728-8127 • (714)962-2411 FAHR96-25 Page2 April 10, 1996 BACKGROUND During the 1980's and early 1990's, each of the Districts was required to consider the adoption of a sewer use fee for ongoing operations, maintenance and rehabilitation costs. Although property taxes, connection fees and federal and state construction grants had historically been the major sources of financing of Districts' activities, they became inadequate during the past decade. After the passage of Proposition 13, all ad valorem property tax revenue has been used in the Operating Funds for maintenance, operations and rehabilitation. Beginning in 1991-92, ad valorem property tax receipts were dedicated to be first used to repay the principal and interest due for COP issues. No property tax revenue has been directly available for capital improvements. The costs of providing service have risen beyond the ability of the property tax apportionments to keep pace with the increasingly stringent requirements of the federal, state and regional regulatory agencies for wastewater treatment to protect public health and the environment. In addition to new regulatory requirements, cost increases are also attributable to inflation, and to additional flows generated by the natural population increases from the excess of births over deaths and in-migration and additional residential, commercial and industrial development. Federal and state assistance from the clean water grant program has essentially been eliminated by Congress because of federal funding problems. All Districts except Nos. 13 and 14 currently receive a reduced historical allocation of the 1 % basic property tax levy equal to approximately 2. 7% of the 1 % basic levy. The typical property owner pays $27 per year in property taxes to the Districts. District No. 13 is fully funded by user fees and District No. 14 is fully funded by the IRWD. FUTURE FINANCING PROJECTIONS As a part of the rate setting process, staff has analyzed statements of Projected Cash Flows for Districts Nos. 1, 2, 3, 5, 6, 7, 11 and 13 prepared in accordance with the adopted "2020 VISION" Financial Plan recommendations, adjusted to reflect changing circumstances. Under the Plan, each District's share of the treatment plant construction, and its respective trunk sewer construction projects are to be financed by a combination of increased connection fees to pay for new capacity and borrowing to pay for rehabilitation and improved treatment. Debt retirement and operating and maintenance costs are to be paid by a combination of property taxes and the annual sewer use fees, under the following assumptions: ' FAHR96-25 Page 3 April 10, 1996 1. Renewal of NPDES Permit and Continuation of Current Treatment Levels (301 (h) Waiver) This scenario represents the minimum probable level of construction, rehabilitation and operations and maintenance costs, while the new Strategic Plan is being developed. For the first five years of the planning period, the differences between renewal of our existing permit and full secondary treatment are not significant. Increased annual flow projections and new sewer service connections have been revised downward from the 1989 Master Plan to reflect current and expected economic development and levels of flow in accordance with 1994 engineering study. 2. Connection Fees 3. The capital facilities connection fee includes the cost of future and existing facilities on a per unit basis. The reason to include future costs is that any new flow will require new, additional facilities and capacity. The Board-approved connection fee policy provides for an automatic annual adjustment of fees to reflect changes in the Engineering News Record-LA construction cost index. These fees have not been increased since 1991-92. Connection fees are uniform throughout the Districts. Staff is recommending that the fees for 1996-97 increase from the 1995-96 rates of $2,350 per residential unit and $470 per 1,000 square feet of floor area for non-residential properties, in accordance with Board policy. Based upon a 2% increase in the ENRLA index, the new fees would be $2,400 per residential unit and $480 per 1,000 square feet of non-residential buildings. A 5% per year increase is projected from 1997-98 through 2004-2005 for cash flow analysis. DebUBorrowing Through 1998-99, all of the Districts except Nos. 13 and 14 are expected to issue additional COP-type debt to meet a portion of Joint Works treatment facilities improvements. Borrowing has been a part of the long-range financial plan for capital improvements since 1979 when the policy of using all property tax revenues for operations, maintenance and rehabilitation was implemented. Extensive use of the now discontinued federal and state Clean Water Grant Program enabled the Districts to stretch out their reserves and other income and to generally avoid borrowing until 1990. Three primary reasons to issue debt are: to protect and to preserve capital reserves; to avoid major increases and fluctuations in user fees from year-to-year; and to spread the cost of facilities over their useful lives. FAHR96-25 Page4 April 10, 1996 The preliminary cash flow projections include additional COP issues that will be required to meet capital project award and cash flow requirements through 1998-99. Any COP issue will need to be approved by the Boards. No COPs are expected to be issued until the completion of the Strategic Plan. 4. Reserves 5. As a part of the financial plan developed by the team of Directors, staff and consultants, the Boards have implemented a plan to build reserves for certain future events. The current reserve policy calls for Dry Period Funding Reserves, Contingency Reserves, Capital Project Reserves, Insurance Reserves, Environmental Requirement Reserves, and Debt Service Reserves. The projected reserve levels have been allowed to decrease to coincide with the reduced capital improvement budget projections. Capital Improvement Projects As the Directors are aware, the Districts are continuing to experience total flows below those of previous years. This flow reduction and the economic climate have caused staff to review the timing of the capital improvement program. Projects for additional capacity and improved treatment are proposed to be delayed, pending completion of the new Strategic Plan. 6. Ad Valorem Property Taxes The cash flow projections are based on the continuing receipt of ad valorem property taxes at the same level as allocated by the County for 1995-96. 1996-97 USER FEE AND CONNECTION FEE RECOMMENDATIONS Taking all of the above assumptions into consideration and the current and projected near-term economic climate, staff is again preparing an overall reduced budget. The portion of each individual District's total operations, maintenance and COP service budget, determined largely by the Joint Operating Fund budget to operate and maintain the treatment and disposal facilities, is approximately 80%. Keeping this significant portion of the operating budget constant and rescheduling certain capital projects, thereby minimizing additional borrowing and subsequent repayment will allow the Districts to maintain the 1995-96 user fee rates for 1996-97. The following table shows the single-family residential annual user fee rates and one-time connection fees for 1996-97 that were anticipated when last year's budget was adopted, the predicted rates in the "2020 VISION" Master Plan, and the revised rates now proposed. .. • J FAHR96-25 Page 5 April 10, 1996 1 2 3 5 6 7 11 13 Weighted Average All Districts Capital Fees Connection Fees SINGLE-FAMILY RESIDENTIAL FEES 1996-97 $100.00 $125.00 75.00 100.00 75.00 125.00 100.00 125.00 80.00 100.00 52.00 75.00 72.00 175.00 100.00 165.00 $75.42 $113.15 $2,470.00 $3,020.00 1996-97 ANNEXATION FEE RECOMMENDATIONS $83.24 71.52 73.89 96.75 76.47 50.09 60.00 100.00 $71.68 $2,400 One-time annexation fees are charged to owners of all properties who desire to annex to the Districts to receive sewerage service. The fee is increased for those properties for which a tax-exchange agreement cannot be negotiated with the County (a result of Proposition 13/AB 8). The fees in effect for 1995-96 for those Districts with annexable territory follow: 2 3 5 7 11 $2,938 3,171 3,071 2,918 5,312 $3,929 4,161 4,106 3,904 6,398 FAHR96-25 Pages April 10, 1996 The annexation fee policy resolutions approved in 1991 provide for an automatic annual increase in the per acre fee on each July 1, based upon the change in the Engineering News Record (ENR) Construction Cost index for the preceding March-to-March time period. The intent of this section is to provide for automatic fee adjustments each year to reflect the increasing costs of constructing sewerage facilities. Based upon an estimated 2% change in the ENR index March 1994 to March 1995, the fees for 1996-97, would be calculated to be: 2 3 5 7 11 $2997 3,234 3,132 2,976 5,418 $4,008 4,244 4,188 3,982 6,526 A literal reading of the 1991 resolutions does not allow the flexibility of not increasing the annexation fee unless the Boards take a specific action deferring the automatic increase. In the interest of full disclosure, staff wanted to bring this fee adjustment to the Committees along with the others. Staff recommends the Annexation Fee, paid for properties currently outside of the Districts, be allowed to automatically increase in an amount determined by the change in the ENR-LA in accordance with adopted Board policy. GGS:lc J:\WPDOCIFINICRANEIFPC.MTGIFAHR.96\STAFFRPT.96\SRFAHR96.25 Format )l:._Written Report c Overheads )(slides Cl Flip Charts Originator ~ Department Head Sign Off•m:._~ Anticipated Time \f, ~V'\.s.. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR 96-26: Summary AGENDA FOR APRIL 10, 1996 Consideration of motion to accept staff's recommendation regarding future funding of Management Performance Review Program In June of 1995, the Finance and Human Resources Committee and the Joint Boards established a Target Merit Pool Fund of 5.0 percent of payroll (totaling $453,000) for distribution in 1996/97 sufficient to provide incentive for performance to employees covered by the Management Performance Review Program (MPRP). This fund would be distributed based on performance, and would be in addition to the already authorized 3.0 percent fund which would be used to provide a cost-of-living adjustment to those employees whose performance had at least met expectations. A plan to improve the MPRP, including extensive training to managers and supervisors, was developed to ensure that the FY96/97 5.0 percent Target Merit Pool Fund would be distributed to provide incentive for meritorious performance. In an effort to provide a true merit bonus while holding the line on payroll costs, the 5.0 percent merit fund will be distributed as a non-base building bonus. It does not become part of base salary. Staff Recommendation The improved MPRP pay for performance program that will be used in FY96-97 can play a vital role in increasing productivity and improving the quality of the service provided by the Districts as long as future funding is made available for the program. Staff would propose the following approach to funding the MPRP: 1. Establish a Target Merit Pool Fund sufficient to provide incentive for meritorious performance each year. The merit fund would be distributed as a true merit bonus and would be non-base building. The amount of merit bonus would be determined by how successful the employee is at accomplishing performance objectives in a given year. Performance objectives support the overall agency goals. The employee is encouraged to maintain high performance standards to re-earn the bonus each year, thus continuously improving agency performance. The fund would be established based on market comparisons of comparable programs. 2. Determine an amount to be distributed as a base building increase to keep the employees' salaries at market. This amount would be determined based on CPI and other market comparisons of comparable programs. This increase would be distributed equally to all employees who meet expectations. 3. Move pay ranges only when appropriate. Conduct annual salary surveys to determine necessity of increasing pay ranges. f:\home\mckinley\wpdoc\stfcov.perfmt April 3, 1996 STAFF REPORT F AHR 96-26: Future Funding of Management Performance Review Program Background In October 1991, the Finance and Personnel Committee submitted a recommendation to the Joint Boards to modify the Management Performance Review Plan (MPRP) in an effort to resolve the salary topping-out problem, enable the Districts to recruit and retain competent management, supervisory and professional staff and to allow for the reward of exemplary performance. This recommendation included provisions that established a program based on more private sector compensation practices that would increase the spread within the salary ranges from 30 to 40 percent, and established salary ranges based on market survey data. The midpoint of the pay range was to be set at market rate. Between 1991 and 1995, the amount of funding provided for the Merit Pool has only been equal to the wage adjustments received by the groups represented by the Orange County Employees Association (OCEA) and the Operating Engineers Local 501 as shown in Table 1 below. Table 1. Six Year History of Salary Increases 1 OCEA AND OPERA TING ENGINEERS Eff. Date Nov. '90 Nov. '91 Nov. '92 Nov. '93 Nov. '94 Nov. '95 Inc.% 5.0 5.5 5.5 -0-3.0 3.0 Does not include 5.5% annual adjustments under 5 step program. PROFESSIONAL AND SUPERVISORY Eff. Date Jul. '91 Jul. '92 Jul. '93 Jul. '94 Jul. '95 Jul. '96 Inc.% 6.2 6.0 3.8 -0-3.0 3.0 TOTAL AV 22.0 3.67 TOTAL AV 22.0 3.67 While employees covered by the MPRP received the same range adjustments and salary increases as the employees represented by the OCEA and the Operating Engineers over the past six years, many represented employees also received 5.5 percent step increases each year. The Districts implemented the MPRP to distinguish the roles and responsibilities of management employees from non-management employees. Management employees are tasked with managing the programs and people that make this organization successful, and therefore, should be rewarded accordingly. In the past, sufficient funding was not provided for the merit pool, therefore, the program has fallen short of fulfilling its goals. Management employees have not been appropriately rewarded for their meritorious performance and their increases have not kept up with increases received by non-management staff. CS DOC e P.O. Box 8127 e Fountain Valley, CA 92728-8127 e (714) 962-2411 FAHR 96-26: Future Funding ofMPRP Page 2 of 4 April 3, 1996 Some employees covered by the MPRP sought representation in 1993 due largely to the fact that they were not being rewarded or acknowledged for their efforts as management employees. The pace at which non-management employees' salaries have increased relative to management employees has caused compression problems between supervisors covered by the MPRP and their non-management staff. Equity concerns also have developed between employees who continuously exceed performance expectations and those who meet expectations or need improvement. The following recommendations regarding the MPRP were adopted in June, 1995 by the F AHR and the Joint Boards: "l. Effective in July 1995, authorize funds totaling $173,000 (2% of payroll) beyond the 3.0 percent of payroll Merit Pool Fund approved last year sufficient to address the more critical range position issues now occurring. Payments will be made in 1995-1996. 2. Establish a Target Merit Pool Fund of 5.0 percent of payroll (totaling $453,000) for implementation in July 1996 sufficient to provide incentive for performance as recommended by Ernst & Young. This fund would be distributed based on performance as in the past, and would be in addition-to the already authorized 3.0 percent fund which would be used to provide a cost-of-living adjustment to those employees whose performance at least met expectations. Payments would be made in 1996-97. 3. Provide extensive training to all supervisors and managers in proper administration of the program, and particularly the review process as recommended by Ernst & Young. " Results of Implementation of Recommendations FY95/96 In July of 1995, the authorized fund of $173,000 (2.0 percent of payroll) was distributed to management, supervisory and professional staff to address critical range position issues. The "equity adjustments" were distributed to employees whose performance had met expectations but whose salaries had not reached mid-point even though they had been in their classifications for at least three years. Since the middle of the range (50 percent) is targeted to market rates, the goal for employees whose performance meets expectations is to reach mid-point in approximately three to five years. Thirty-two employees received "equity adjustments" based on this criterion. In addition, 18 employees received "equity adjustments" due to identified salary compression problems. FAHR 96-26: Future Funding ofMPRP Page 3 of 4 April 3, 1996 FY96/97 A plan to improve and revitalize the MPRP was developed to guarantee that the FY96/97 5.0 percent Target Merit Pool Fund established by the Boards of Directors in June of 1995 would be distributed to provide incentive for meritorious performance of objectives that support the Districts' critical success factors. Improvement of the MPRP included the following steps: • Established a cross-functional employee committee to assist in the improvement process • Developed a performance management manual • Computerized the performance evaluation form • Training for managerial, supervisory and professional employees will be provided. • Assistance will be provided to managers and supervisors in the development and evaluation of performance objectives and measurement standards. Distribution of 5.0 Percent Target Merit Pool Fund The few cities and sanitary agencies that use a pay for performance merit system distribute the employees' rewards as base building increases. The Districts, however, will distribute the 5.0 percent merit fund as a non-base building bonus. The merit fund will not be an automatic 5.0 percent increase. The amount of merit bonus will be determined by how successful an employee is at accomplishing performance objectives. Actual bonus amounts will be distributed according to the attached Merit Bonus Guidelines (Attachment 1). The Districts' long term payroll costs and benefits costs will not increase due to the distribution of the merit fund. To the extent that there remain equity issues, some portion of the merit fund may be used to meet this need. Given the recent equity adjustments made in July, 1995, it is unlikely that there would be very many required. How Does This Impact The Districts' Position Relative to the Market? The Districts' MPRP pay ranges are based on private sector compensation practices. The pay range spread between the minimum and the maximum of each pay range is 40 percent and the midpoint of the range is set at market. The results of a survey conducted by staff indicate that the Districts' pay ranges are competitive with the market. The midpoints of the pay ranges for the employees covered by the MPRP are an average 6.9 percent above the public sector midpoints and 8.2 percent above the private sector midpoints; however, the average position of employees' salaries within the pay ranges is only 44 percent (midpoint is 50 percent). This indicates that employees are actually being paid at market. The attached Salary Distribution by Quartile graph (Attachment 2) shows that the distribution of salaries within the pay ranges is very close to the established target line. FAHR 96-26: Future Funding ofMPRP Page 4 of 4 April 3, 1996 By distributing the 5.0 percent Target Merit Pool Fund as a non-base building bonus, the Districts will maintain the competitive position of its salary structure, continue to pay employees market rates and recognize above average management employees for meritorious performance in the delivery of critical goals. The bonus will have to be re-earned each year, therefore, an employee will have to maintain or improve performance to achieve the same bonus, or greater. This method of distribution will best serve the Districts' financial interests by providing incentive while holding the line on payroll costs. Staff Recommendation The improved MPRP pay for performance program that will be used in FY96-97 will assist Districts' management in planning, monitoring and evaluating employees' performance and will provide an incentive for consistent and meritorious performance. The program can play a vital role in increasing productivity and improving the quality of the service provided by the Districts as long as future funding is made available for the program. Staff proposes the following approach to funding the MPRP: 1. Establish a Target Merit Pool Fund sufficient to provide incentive for meritorious performance each year. The merit fund would be distributed as a true merit bonus and would be non-base building. The amount of merit bonus would be determined by how successful the employee is at accomplishing performance objectives in a given year. Performance objectives support the overall agency goals. The employee is encouraged to maintain high performance standards to re-earn the bonus each year, thus continuously improving agency performance. The fund would be established based on market comparisons of comparable programs. 2. Determine an amount to be distributed as a base building increase to keep the employees' salaries at market. This amount would be determined based on CPI and other market comparisons of comparable programs. This increase would be distributed equally to all employees who meet expectations. 3. Move pay ranges only when appropriate. Conduct annual salary surveys to determine necessity of increasing pay ranges. DMM f:\home\mckinley\wpdoc\stfrep.permgt ATTACHMENT 1 FY 96-97 Merit Bonus Guidelines No merit Performance No contract! Meets increase Expectations I No merit Performance Needs Improvement 1%-7% Performance Exceeds Expectations 7%-10% Outstanding Performance \ , _/ _) Attachment 2 Salary Distribution by Quartiles Three Year History 50% T--:--::~:-:-:-----------------------.... Target Line l*-W FY93/94 42% 40% • FY94/95 .. 37% .................... . • FY95/96 30% .. -., .. -... , ... ---.. -.. -2B% 20% 12% 10% 0% I WV'""''""'~,. 25th (1st) 50th (2nd) 75th (3rd) 1 Ooth (4th) Salary Range Quartiles ; Format 0 Written Report •Overheads •Slides •Flip Charts (12): Summary Anticipated Time __ _ FlNANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE AGENDA FOR APRIL 10, 1996 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, April 10, 1996. 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. Review of Legal Services Alternatives Review Commercial Bank Selection Alternatives Quarterly Treasury & Investment Report Quarterly Budget Review Quarterly Training Program Status Report 1996-97 Budget Update Consideration of Property Insurance Renewal Consideration of Liability Insurance Consideration of Employee Medical Insurance Providers Consideration of Motion Authorizing G.M. to Negotiate Agreement for F.I.S. Consideration of 1996-97 Budget Recommendations Quarterly Communications Program Update Annual Review of Investment Policy Consideration of Broadbandin Sala Schedule Staff Recommendation Information only item. J:\WPDOCIFIN\CRANBFPC.MTGIFAHR.96\COVERS.96\CALEN4.96 0 For The Third Qua Ended March 31, 191"'1 ' ~·.:""--:·!~·:•.·:r·."-.·.::: .. ;•,., ........ ·:,-~ .·. • .. · .. ,., .. ·:·-·· .. -· --_·.-.c,,:-. .. :-__ -•.. ·. :: .·1 .·: ·_.•· -----·,.,.,:r:·-.... · _. ::}.·::~:;-,:g'.g~p~y \9.~~.n ~~_?;f «?,:~-. __ Qi ~~tt~~~-i:~f ;:,9t~;baJL~~9.!it!F.Y~1:9iJifa!ini a \ l J Table of Contents Section 1 -Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Financial Report- Section 2 -Joint Operating & Working Capital Budget Review Chart of Joint Operating Costs Per Million Gallons . . . . . . . . . . . . . . . . . . . . . . 1 Charts on the Gallonage Charge by Department . . . . . . . . . . . . . . . . . . . . . . . . 2 Divisional Contributions to Gallonage Charge . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Summary of Expenses by Major Category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Summary of Expenses by Line Item . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Summary of Revenues by Line Item . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Comparison of Expenses by Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Chart of Total Flows-Year-To-Date .................................. 9 Chart of Staffing Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section 3 -Capital Outlay Revolving Fund Review Capital Outlay Revolving Fund Graphs by Type and Funding Source . . . . . . . . 1 Summary of Joint Works Construction Requirement-Current Year .......... 2 Summary of Joint Works Construction Requirement-Project Life . . . . . . . . . . . 5 Section 4 -Budget Review by District Summary Budget Reviews-All Districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 District No. 1 Budget Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 District No. 2 Budget Review ....................................... 3 District No. 3 Budget Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 District No. 5 Budget Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 District No. 6 Budget Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 District No. 7 Budget Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 District No. 11 Budget Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 District No. 13 Budget Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 District No. 14 Budget Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section 5 -Self-Insurance Funds Budget Reviews Medical Fund Budget Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Public Liability Fund Budget Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Workers' Compensation Budget Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Operational Report- Section 6 -Activity Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Section 7 -Project Tracking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 This page was intentionally left blank 7 SECTION 1. OVERVIEW ] Third Quarter Financial & Operational Report March 31, 1996 Overview This is the second comprehensive financial and operational report prepared by staff that consolidates the financial and operational accomplishments of the Districts' through the third quarter ended March 31, 1996. The intent of this report is to provide the Directors, staff, and the general public with a comprehensive overview of the financial condition of the Districts, report on the status of all capital projects in progress, and outline the status of major projects and departmental activity trends. A summary of the sections contained within this report is provided below. Joint Operating & Working Capital Budget Review: At March 31, 1996, 65.74 percent or $35,747,000 of the 1995-96 net joint operating budget of $54,380,000 has been expended. Although net costs have increased 3.59 percent in comparison with the same period last year, the Districts' are still only at 71.70 percent of the target goal of $49,860,000. The total cost per million gallons (mg) dropped slightly to $553 from the mid-year total of $556, and is still $74 and $46 below the approved budget and target goals of $627 and $599, respectively, while the percentage change in flows increased less than 1.5 percent. As highlighted on the "Treatment Cost Per MG" shown on Section 1-Page 4, the cost per mg has fluctuated for each of the three quarters when analyzed independently while the accumulated costs-to-date started slowly with only $509 reported in the first quarter and then leveling out at the end of the second and third quarters at $556 and $553, respectively. Some of the factors contributing to the fluctuating per quarter cost of $509, $603, and $547 per mg for the first, second, and third quarters, respectively, include: • Environmental Monitoring costs, totaling $1,630,000, were reported in increments of 18 percent, 63 percent, and 19 percent for the first, second, and third quarters, respectively. The large percentage paid in the second quarter, totaling slightly more than $ 1 million, is attributable to the timing of payments made for ocean monitoring. In total, this line item is currently at 68 percent of the total budget and is expected to fall below budget at year end. • Repair Materials were reported at 31 percent in the first quarter, 57 percent in the second quarter, and at 9 percent in the third quarter. The majority of Section 1 -Page 1 1995-96 3rd Quarter Report the repair materials needed for this fiscal year were identified in the first and second quarters and purchased in the second quarter. Currently, repair materials are only at 55 percent of budget and are expected to fall significantly below budget at year end. Other significant Joint Operating results as of March 31, 1996: • Salaries and Wages-Although total salary and wages are only at 69.24 percent of budget at mid-year, a net of 19 staff members have been added since the beginning of the fiscal year that will contribute to the total compensation paid out in the second half of the year. • Retirement-At the end of the third quarter, the retirement budget was expended at a higher rate than salaries and wages at 73.23 percent. This higher percentage is reflective of $208,000 paid out for early retirement as well as the additional amounts paid for the third and final year payment for the rate increase resulting from the change in the Orange County Retirement Systems actuarial assumptions. • Insurance-The Insurance line item was at $1,089,540, or 87 percent of budget, at March 31, 1996. This overage is primarily due to the fact that the final insurance quotes were received after the budget was adopted. Staff is currently examining insurance costs for next year and firm insurance proposals will be available prior to the adoption of the 1996-97 budget. For more detailed information, Section 1 -Page 5 and Section 1 -Page 6 are line item expense listings. Page 5 is a listing of expenses incurred through each quarter with year-to-date percentages. Page 6 provides a comparison of expenses incurred by quarter along with the percentage expended for each quarter to the total expense incurred. Capital Outlay Revolving Fund Review: At March 31, 1996, total Capital Outlay Revolving Fund expenditures totaled $13,876,000, or 41 percent of budget. Total projected capital expenditures for 1995-96 has been revised from $33.5 million to $22.5 million due to the delay of several major projects such as the: •Primary Treatment Expansion of 72 mgd at Plant No. 1 •Primary Clarifier Rehabilitation at Plant No. 1 •Maintenance Building at Plant No. 2 •Fire Protection and Water Systems Modifications at Plant No. 2 •Chemical and Plant Water Modifications at Plant No. 2 •Surge Tower Replacement at Plant No. 2. In addition, the new Warehouse Building at Plant No. 2 has been cancelled and the old Section 1 -Page 2 7 l J Overview Warehouse Building at Plant No. 2 will be remodeled instead. Budget Review by Districts: At mid-year, revenues of all Districts totaled $90,206,000, or 70 percent of budget. Only $3.28 million, or 36.1 percent, of the $9.1 million budgeted for IRWD Fees have been received. These fees are low primarily because the related operating and capital requirements for District 14 are also low and, although budgeted, District 14 is not currently funding capital reserves because of anticipated joint equity sales. Connection fees are already at 129 percent of budget, or $6.1 million due to unexpected growth within the Districts. Interest & Miscellaneous Receipts are also high at 112 percent of budget, or $17,723,000 because of both larger available cash balances and higher interest rate yields than was anticipated in the 1995-96 budget. Conversely, expenses and outlays of all Districts totaled $91,895,000, or 63.1 percent of budget at March 31, 1996 with no major deviations. Self-Insurance Funds Budget Reviews: The Districts' are self-insured for General Liability, Workers' Compensation and Employee Dental Insurance and provide separate fund accounting for the revenue and expenses incurred in managing these liability claims. The revenues to these funds represent individual District contributions based on each District's share of Joint Works Operating Costs (sewage flows). Expenses to these funds include actual claims paid, claims administration, and excess loss policies. The Self-Insurance Fund revenues totaled $672,000 or 64 percent of budget at March 31 while total expenses were $660,000, or 65 percent of budget. Operational Review: The Operational Review section of this report pertains to the status of Activity Trends and Project Tracking as of March 31, 1996. Activity Trends provides a comparison of current activity trends as compared to budget. Provided within this section are the key workload indicators of each Division that are constantly compared with pre-determined benchmarks and re-evaluated over time. Also included is an explanation of major variances or changes in the data. Project Tracking summarizes all major divisional projects which were included in the 1995-96 budget. This section identifies each major project and indicates the title, division responsible, the status of the project, and the start and end dates. The status of all projects is also provided in chart form and includes the following project descriptions: •Ahead •Not Started •On Track -on Hold •Done -Behind •Cancelled Section 1 -Page 3 1995-96 3rd Quarter Report Treatment Cost Per MG $700 $603 $625 $550 $475 $400 Quarterly MG Cost Accumulated Cost/ MGD Section 1 -Page 4 IJ 1st Qtr •2nd Qtr •3rd Qtr Overview County Sanitation Districts of Orange County Joint Operating Expenses Incurred Through The Quarters Ended 9130195, 12130195, & 3131196 I!, ~ .Q Q !;_ E ~ 1995-96 3 Months 6 Mo ended 9 Mo ended 7 Adopted Ended Ended Ended 1stQtr 2nd Qtr 3rd Otr ~ ~ 12131195 3/31/96 % ofl;!ugget % of Buelgel %!21 fi!UQ9!!1 Salaries, wages & benefrts 39,967,000 8,682,801 18,130,745 27,581,016 21.72% 45.36% 69.01% 1 Chargeouts & allocations (11,300,000) (1 ,945,249) (4,844,779) (7,079,178) 17.21% 42.87% 62.65% Net Salaries, wages & benefrts 28,667,000 6,737,552 13,285,966 20,501,838 23.50% 46.35% 71.52% Gasoline 175,000 29,353 67,239 119,029 16.77% 38.42% 68.02% Insurance 1,250,000 363,707 727,414 1,089,540 29.10% 58.19% 87.16% Memberships 58,000 28,400 28,950 55,305 48.97% 49.91% 95.35% Office Expense-Supplies 203,100 28,286 60,457 96,855 13.93% 29.77% 47.69% Office automation 157,500 30,347 96,157 132,761 19.27% 61 .05% 84.29% Office Expense-other 102,300 18,000 49,859 76,618 17.60% 48.74% 74.90% Odor control chemicals 2,103,500 245,769 665,129 1,116,232 11.68% 31.62% 53.07% Sulfide control chemicals 1,715,000 246,097 610,626 1,163,622 14.35% 35.61% 67.85% Chemical coagulents 1,545,000 241,798 537,082 686,528 15.65% 34.76% 44.44% Lab Chemicals & Supplies 509,000 85,109 156,927 251,936 16.72% 30.83% 49.50% ] Tools 125,400 24,439 56,158 81,071 19.49% 44.78% 64.65% Solvents, cleaners& Janitorial supp 146,000 27,842 56,394 84,082 19.07% 38.63% 57.59% Other operating supplies 207,500 51,780 112,165 152,774 24.95% 54.06% 73.63% Grounelskeeping & Janitorial Services 213,000 21,705 50,249 49,937 10.19% 23.59% 23.44% Outside Lab Services 150,000 9,364 24,753 41,285 6.24% 16.50% 27.52% l Solids Removal 5,425,000 1,373,753 2,855,393 4,099,459 25.32% 52.63% 75.57% Other waste removal 140,000 13,009 15,895 84,555 9.29% 11.35% 60.40% Oxygen plant aper & mtce 510,000 127,764 235,338 359,004 25.05% 46.14% 70.39% Other Contractual Services 831 ,500 86,186 349,963 530,421 10.37% 42.09% 63.79% Legal Services 600,000 187,414 340,854 459,146 31.24% 56.81% 76.52% Audit & Accounting 70,000 15,844 27,618 27,618 22.63% 39.45% 39.45% Engineering 289,000 27,797 70,322 118,488 9.62% 24.33% 41.00% Other Prof Services 553,600 90,748 221,855 390,111 1639% 40.07% 70.47% In house printing 219,100 22,367 116,298 182,838 10.21% 53.08% 83.45% Outside printing 60,500 3,664 14,353 30,267 6.06% 23.72% 50.03% Photo processing 32,700 5,834 13,568 22,092 17.84% 41.49% 67.56% Notices & ads 29,500 10,847 20,234 37,115 36.77% 68.59% 125.81% Outside Equipment Rental 109,000 33,712 46,804 64,722 30.93% 42.94% 59.38% District Equipment Rental 126,700 23,224 46,883 74,118 18.33% 37.00% 58.50% Repair Materials 3,375,900 625,349 1,675,374 1,846,674 18.52% 49.63% 54.70% Repair Service Contracts 834,000 215,679 407,193 540,927 25.86% 48.82% 64.86% Environmental Monitoring 2,375,000 288,335 1,318,477 1,630,299 12.14% 55.51% 68.64% Air Quality Monitoring 155,000 650 650 0.42% 0.42% Research 565,000 50,145 187,459 286,622 8.88% 33.18% 50.73% Training, Travel & meetings 647,500 90,253 180,359 360,434 13.94% 27.85% 55.67% Uncollectable Accounts 15,000 131 171 171 0.87% 1.14% 1.14% Diesel for generators 25,000 Electric Power 1,075,000 204,998 405,466 575,021 19.07% 37.72% 53.49% Natural Gas 1,400,000 245,545 421 ,781 713,263 17.54% 30.13% 50.95% Telephone 125,500 26,512 63,022 113,265 21 .13% 50.22% 90.25% Waler 750,000 90,412 276,080 358,727 12.05% 36.81% 47.83% Freight 79,700 10,317 25,518 42,082 12.94% 32.02% 52.80% General Other Exp 539,000 72,451 164,185 198,150 13,44% 30.46% 36.76% AQMD Operating Fees 250,000 36,078 89,129 124,090 14.43% 35.65% 49.64% Prior Years Exp 20,000 01her Non Oper Exp 94,500 14,837 29,855 39,929 15.70% 31.59% 42.25% Cost Allocation of materials & serv (470,000) (128,130), (156,445) (161 ,257) 27.26% 33.29% 34.31% Net Materials 29,513,000 5,317,071 12,763,211 18,346,576 18.02% 43.25% 62.16% Net Revenues (3,800,000) (947,039) (1,983,442) (2,871 ,955) 24.92% 52.20% 75.58% Net Joint Operating Expenses 54,380,000 11,107,584 24,065,735 35,976,459 20.43% 44.25% 66.16% Total Flow in Million Gallons 86,689 21,808 43,285 65,075 25.16% 49.93% 75.07% Cost per Million Gallons 627 509 556 553 81.18% 88.68% 88.20% Section 1 -Page 5 1995-96 3rd Quarter Report County Sanitation Districts of Orange County Joint Operating Expenses Comparison of Quarters Ended 9/30/95, 12/30/95, & 3/31/96 A e. Q D !; .E 7/1/95 -10/1/95 -1/1/96 -1stQtr 2nd Qtr 3rd Qtr 9/30/95 12131/95 3/31/96 ~ ~ % of Total Salaries, wages & benefrts 8,682,801 9,447,944 9,450,271 31.48% 34.26% 34.26% Chargeouts & allocations (1,945,249) (2,899,530) (2,234,399) 27.48% 40.96% 31.56% Net Salaries, wages & benefrts 6.737,552 6,548,414 7,215,872 32.86% 31.94% 35.20% Gasoline 29,353 37,886 51,790 24.66% 31.83% 43.51% Insurance 363,707 363,707 362,126 33.38% 33.38% 33.24% Memberships 28,400 550 26,355 51.35% 0.99% 47.65% Office Expense-Supplies 28,286 32,171 36,398 29.20% 33.22% 37.58% Office automation 30,347 65,810 36,604 22.86% 49.57% 27.57% Office Expense-other 18,000 31,859 26,759 23.49% 41.58% 34.93% Odor control chemicals 245,769 419,360 451,103 22.02% 37.57% 40.41% Sulfide control chemicals 246,097 364,529 552,996 21.15% 31.33% 47.52% Chemical coagulents 241,798 295,284 149,446 35.22% 43.01% 21.77% Lab Chemicals & Supplies 85,109 71,818 95,009 33.78% 28.51% 37.71% Tools 24,439 31,719 24,913 30.15% 39.12% 30.73% Solvents, cleaners& Janltorial supp 27,842 28,552 27,688 33.11% 33.96% 32.93% Other operating supplies 51,780 60,385 40,609 33.89% 39.53% 26.58% Groundskeeping & Janltorial Services 21,705 28,544 (312) 43.46% 57.16% (0.62)% Outside Lab Services 9,364 15,389 16,532 22.68% 37.28% 40.04% Solids Removal 1,373,753 1,481,640 1,244,066 33.51% 36.14% 30.35% Other waste removal 13,009 2,886 68,660 15.39% 3.41% 81.20% Oxygen plant oper & mice 127,764 107,574 123,666 35.59% 29.96% 34.45% Other Contractual Services 86,186 263,777 180,458 16.25% 49.73% 34.02% Legal Services 187,414 153,440 118,292 40.82% 33.42% 25.76% Audit & Accounting 15,844 11,774 57.37% 42.63% 0.00% Engineering 27,797 42,525 48,166 23.46% 35.89% 40.65% Other Prof Services 90,748 131,107 168,256 23.26% 33.61% 43.13% In house printing 22,367 93,931 66,540 12.23% 51.37% 36.39% Outside printing 3,664 10,689 15,914 12.11% 35.32% 52.58% Photo processing 5,834 7,734 8,524 26.41% 35.01% 38.58% Notices & ads 10,847 9,387 16,881 29.23% 25.29% 45.48% Outside Equipment Rental 33,712 13,092 17,918 52.09% 20.23% 27.68% District Equipment Rental 23,224 23,659 27,235 31.33% 31.92% 36.75% Repair Materials 625,349 1,050,025 171,300 33.86% 56.86% 9.28% Repair Service Contracts 215,679 191,514 133,734 39.87% 35.40% 24.72% Environmental Monitoring 288,335 1,030,142 311,822 17.69% 63.19% 19.13% Air Quallty Monitoring 650 0.00% 100.00% 0.00% Research 50,145 137,314 99,163 17.50% 47.91% 34.60% Training, Travel & meetings 90,253 90,106 180,075 25.04% 25.00% 49.96% Uncollectable Accounts 131 40 76.61% 23.39% 0.00% Diesel for generators Electric Power 204,998 200,468 169,555 35.65% 34.86% 29.49% Natural Gas 245,545 176,236 291,482 34.43% 24.71% 40.87% Telephone 26,512 36,510 50,243 23.41% 32.23% 44.36% Water 90,412 185,668 82,647 25.20% 51.76% 23.04% Freight 10,317 15,201 16,564 24.52% 36.12% 39.36% General Other Exp 72,451 91,734 33,965 36.56% 46.30% 17,14% AQMD Operating Fees 36,078 53,051 34,961 29.07% 42.75% 28.17% Prior Years Exp Other Non Oper Exp 14,837 15,018 10,074 37.16% 37.61 % 25.23% Cost Allocation of materials & serv (128,130) (28,315) (4,812) 79.46% 17.56% 2.98% Net Materials 5,317,071 7,446,140 5,583,365 28.98% 40.59% 30.43% Net Revenues (947,039) (1,036,403) (888,513) 32.98% 36.09% 30.94% Net Joint Operating Expenses 11,107,584 12,958,151 11,910,724 30.87% 36.02% 33.11% Total Flow in Million Gallons 21,808 21,477 21,790 33.51% 33.00% 33.48% Cost per Million Gallons 509 603 547 92.04% 109.04% 98.92% Section 1 -Page 6 '7 I J.O. & W.C. Budget Review Joint Operating Costs Per Million Gallons 640 ~--------------------------~ -----• • ------• -• • • • • • • • ----• • • • • • • • • -• • -• • • • • • • • • --• --• --• • • • -Budget -$627 615 4----------------------------------J 1 --------• • • • --------• • • • ----• ----• -• • • • -• • -• • --• ----• ----• • -• -Target -$599 590 +------------------------------< Curr. Proj. -$553 } j ) -• • -6/30 Proj 490 ·t---------------------------------, --3/31 Cost/MG j --•5130 Cost/MG 465 +--------+-----------+-------+--------< 91-92 92-93 93-94 94-95 95-96 l J _.J _j Section 2 -Page 1 ...J 1995-96 3rd Quarter Report $300.00 $250.00 Ill C .2 $200.00 ii C) C ~ $150.00 :i ... & I!! .!! $100.00 0 C $50.00 $0.00 Actual 1990-91 Actual 1991-92 Gallonage Charges by Department For The Nine Months Ended 3/31/96 Actual 1992-93 Actual 1993-94 Actual 1994-95 Budget 1995-96 I -· --Total Maintenance ---Total Operations ---· Total Tech Services I $40.00 $35.00 $30.00 ------------------------------- t!l .2 ~ $25.00 ---------- C ~ :i $20.00 !. I!! $15.00 .!! 0 C $10.00 $5.00 $0.00 Actual 1990-91 Actual 1991-92 Actual 1992-93 Actual 1993-94 Actual 1994-95 Budget 1995-96 Target 1995-96 Target 1995-96 95-96 Ytd 95-96 Ytd I-,:,--Total Management -¾-Total Human Resources ~ Total Finance ---Total Information Serv/Tech -e-Total Engineering I Section 2 -Page 2 J. 0. &W. C. Budget Review Divisional Contributions to Gallonage Charge For The Nine Months Ended 3/31/96 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1995-96 1995-96 Actual Actual Actual Actual Actual Budget Target Yrto Date Annual Flow In MIiiion Gallons 98,046.36 82,938.27 84,999.62 84,321.90 88,489.60 86,688.61 86,688.61 65,075.42 2150 General Manager 12.02 9.03 8.45 6.76 15.94 8.81 8.33 10.29 2160 Board Secretary 0.34 2.12 0.77 0.83 0.66 1.66 1.46 1.29 2170 Management Support 1.50 3.70 2.69 2.83 2.47 0.63 0.43 0.23 2190 Communications 7.80 7.04 5.32 Total Management 13.87 14.85 11.90 10.42 19.07 18.90 17.26 17.13 2180 Personnel & Security 5.46 13.25 8.98 8.99 11.78 2510 HR Administration 3.45 3.45 4.03 2520 HR & Training 5.92 5.25 5.56 2530 Safety & Emerg Response 7.05 6.51 7.68 Total Human Resources 5.46 13.25 8.98 8.99 11.78 16.42 15.20 17.28 2210 Dir of Finance 7.57 10.94 13.79 16.85 17.07 17.87 18.80 20.68 2220 Accounting 5.50 7.63 6.57 6.59 9.24 12.03 11.35 10.74 2230 Purchasing & Warehousing 5.39 6.66 6.25 6,01 6.18 8.77 8.22 7.44 J Total Finance 18.46 25.23 26.61 29.45 32.49 38.67 38.37 38.86 2240 information Services 6.29 10.13 11.79 13.60 14.15 2410 Info Tech Administration 3.07 2.87 2.17 l 2420 Hardware Support 7.42 6.27 8.18 2430 Software Support 7.41 6.58 13.00 Total Information ServfTech 6.29 10.13 11.79 13.60 14.15 17.90 15.72 23.35 3310 Director of O & M 11.05 9.25 9.56 9.87 12.24 Total Dir of O 1/, M 11.05 9.25 9.56 9.87 12.24 3310 Director of Maintenance 3.06 2.88 4.98 3320 Mtce Scheduling 5.73 5.36 5.47 3330 PlantMtce 34.10 39.27 42.21 39.02 36.14 37.62 37.28 37.10 3340 Collections 4.08 7.72 3.52 3.55 2.82 3.95 3.04 4.55 3350 Mechanical 50.90 55.40 59.80 58.09 58.68 67.10 63.84 53.55 3360 Electrical 13.94 17.79 17.66 20.96 20.98 22.66 22.05 19.84 3370 Instrumentation 14.66 19.21 22.51 27.83 29.17 34.32 32.68 27.78 Total Maintenance 117.67 139.39 145.71 149.46 147.79 174.43 167.13 153.28 3410 Dir of Operations 14.32 13.82 15.76 33/3480 Plant Operations 146.42 162.76 192.77 185.02 167.96 264.83 258.96 228.55 Total Operations 146.42 162.76 192.77 185.02 167.96 279.15 272.78 244.31 3510 Dir of Tech Sevices 3.59 3.92 4.13 2.88 2.18 9.61 6.55 6.57 3520 Compliance 29.58 34.44 31.89 30.82 40.30 3530 Cons, Reel, Reuse 51.87 74.98 71.35 68.29 68.03 3540 Air Quality 5.09 5.65 8.30 6.51 3550 Environmental Mgmt 56.77 55.26 44.21 3580 Laboratory 21.78 33.13 38.07 44.06 36.63 41 .32 40.36 37.27 3590 Source Control 9.01 14.82 8.17 11.75 9.49 8.93 8.70 4.38 Total Tech Services 115.83 166.38 159.26 166.11 163.16 116.62 110.87 92.43 3710 Dir of Engr 1.45 4.54 0.72 0.55 0.88 1.45 1.09 1.12 3720 Planning & Design (Design @ 95-96) 5.01 7.89 2.64 1.76 3.18 2.81 1.10 3.98 3730 Engineering Planning 0.63 1.28 3750 Instr & Controls 1.97 3790 ConstrMgmt 5.59 6.86 2.89 3.51 3.04 4.17 3.43 3.96 Total Engineering 12.04 21.26 6.24 5.82 7.10 9.05 5.62 10.33 Total Expenses 447.10 562.49 572.83 578.74 575.73 671.14 642.96 596.98 Less Revenues (21.91) (43.03) (34.51) (42.93) (52.54) (43.84) (43.84) (44.13) Net JO Expenses 425.19 519.46 538.31 535.81 523.19 627.30 599.13 552.84 Section 2 -Page 3 1995-96 3rd Quarter Report Summary of Expenses by Major Category For The Nine Months Ended 3/31/96 Exp. Exp. Iner. Iner. Percent Budget Thru Thru (Deer.) (Deer.) Budget Remaining 1995-96 3/31/96 3/31/95 $ % Realized Budget Net Salaries, Wages & Benefits 28,667,000 20,501,838 19,043,525 1,458,313 7.66% 71.52% 8,165,162 Odor Control & Chemical Coagulants 5,363,500 2,966,382 2,832,745 133,637 4.72% 55.31% 2,397,118 Contractual Services 7,269,500 5,393,661 5,209,696 183,965 3.53% 74.20% 1,875,839 Professional Services 1,512,600 995,363 1,107,974 (112,611) -10.16% 65.80% 517,237 Equipment Charges 235,700 138,840 127,557 11,283 8.85% 58.91% 96,860 Repair & Maint., Materials & Services 4,209,900 2,387,601 2,453,983 (66,382) -2.71% 56.71% 1,822,299 Research & Monitoring 3,095,000 1,688,571 2,044,127 (355,556) -17.39% 54.56% 1,406,429 Utilities 3,375,500 1,760,276 2,121,135 (360,859) -17.01% 52.15% 1,615,224 Other Materials, Supplies & Outside Services 4,451,300 3,015,882 2,512,974 502,908 20.01% 67.75% 1,435,418 Total Joint Operating Expenses 58,180,000 38,848,414 37,453,716 1,394,698 3.72% 66.77% 19,331,586 Revenues & Offsets (3,800,000) (2,871,955) (2,945,945) 73,990 -2.51% 75.58% (928,045) Net Joint Operating Expense 54,380,000 35,976,459 34,507,771 1,468,688 4.26% 66.16% 18,403,541 Gallonage Flow (MG) 86,688.61 65,075.42 67,006.31 (1,931) -2.88% 75.07% 21,613 Gallonage Flow (MGD) 236.85 353.67 364.16 (10.49) -2.88% Gallonage Charge ($'s/MG) 627.30 552.84 514.99 37.85 7.35% Section 2 -Page 4 J. 0. & W. C. Budget Review Summary of Expenses by Line Item For The Nine Months Ended March 31, 1996 % EXP EXP EXP INCR INCR BUDGET THRU THRU REMAINING THRU (DECR) (DECR) Description 1995-96 3/31/96 3/31/96 BUDGET 3/31/95 $ % Salaries. Wages. & Benefits Salaries & Wages 32,283,000 22,353,326 69.24 9,929,674 21,451,820 901,506 4.20 Employee Benefits: Retirement 3,077,000 2,253,163 73.23 823,837 1,645,440 607,723 36.93 Workers Comp 225,000 164,423 73.08 60,577 173,077 (8,654) (5.00) Unemployment Ins 75,000 25,013 33.35 49,987 28,125 (3,112) (11.06) Group Insurance 4,207,000 2,742,616 65.19 1,464,384 2,714,445 28,171 1.04 l Uniform Rental 100,000 42,475 42.48 57,525 51,235 (8,760) (17.10) Tot.al Benefits 7,684,000 5,227,690 68.03 2,456,310 4,612,322 615,368 13.34 Salaries, Wages, & Benefits 39,967,000 27,581 ,016 69.01 12,385,984 26,064., 142 1,516,874 5.82 W.0. Salaries & Ben. Alloc. Direct Charges-Corf (6,875,000) (4,492,692) 65.35 (2,382,308) (4,450,103) (42,589) 0.96 Cost Alloc-Corf/Dist (4,425,000) (2,586,486) 58.45 (1 ,838,514} (2,570,514) (15,972) 0.62 W.O. Salaries & Benefits (11,300,000) (7,079,178) 62.65 (4,220,822) (7,020,617) (58,561) 0.83 Net J.O. Payroll 28,667,000 20,501,838 71.52 8,165,162 19,043,525 1,458,313 7.66 Matl, Supply, & Services Gasoline, Diesel & Oil 175,000 119,029 68.02 55,971 135,578 (16,549) (12.21) Insurance 1,250,000 1,089,540 87.16 160,460 929,703 159,837 17.19 Memberships 58,000 55,305 95.35 2,695 54,503 802 1.47 Office Exp -Supplies 203,100 96,855 47.69 106,245 72,141 24,714 34.26 Office Automation 157,500 132,761 84.29 24,739 68,490 64,271 93.84 Minor Furniture, Fixtures, N/A -N/A Other 102,300 76,618 74.90 25,682 64,731 11,887 18.36 Operating Supplies Odor Control 2,103,500 1,116,232 53.07 987,268 860,352 255,880 29.74 Sulfide Control 1,715,000 1,163,622 67.85 551,378 1,118,919 44,703 4.00 Chemical Coagulents 1,545,000 686,528 44.44 858,472 853,474 (166,946) (19.56) Lab Chemicals & Supplies 509,000 251,936 49.50 257,064 271,283 (19,347) (7.13) Tools 125,400 81,071 64.65 44,329 52,786 28,285 53.58 Solv, Paints, & Jan. Supplies 146,000 84,082 57.59 61,918 98,534 (14,452) (14.67) Other Operating Supplies 207,500 152,774 73.63 54,726 125,713 27,061 21.53 Contractual Services Groundskeeping & Janitorial 213,000 49,937 23.44 163,063 88,134 (38,197) (43.34) Outside Lab Services 150,000 41,285 27.52 108,715 29,999 11,286 37.62 Solids Removal 5,425,000 4,099,459 75.57 1,325,541 4,276,149 (176,690) (4.13) Other Waste Disposal 140,000 84,555 60.40 55,445 49,256 35,299 71.66 Oxygen Plant Oper 510,000 359,004 70.39 150,996 331,445 27,559 8.31 Other 831,500 530,421 63.79 301,079 434,713 95,708 22.02 Section 2 -Page 5 1995-96 -3rd Quarter Report Summary of Expenses by Line Item For The Nine Months Ended March 31, 1996 % % EXP EXP EXP INCR EXP BUDGET THRU THRU REMAINING THRU (DECR) THRU DESCRIPTION 1995-96 3131196 3131196 BUDGET 3131195 $ % Professional Services Legal 600,000 459,146 76.52 140,854 522,112 (62,966) (12.06) Audit & Accounting 70,000 27,618 39.45 42,382 67,953 (40,335) (59.36) Engineering 289,000 118,488 41.00 170,512 31,955 86,533 270.80 Other 553,600 390,111 70.47 163,489 485,954 (95,843) (19.72) Printing & Publication Repro-ln-House 219,100 182,838 83.45 36,262 169,136 13,702 8.10 Printing-Outside 60,500 30,267 50.03 30,233 10,147 20,120 198.29 Photo Processing 32,700 22,092 67.56 10,608 15,425 6,667 43.22 Notices & Ads 29,500 37,115 125.81 (7,615) 19,135 17,980 93.96 Rents & Leases Outside Equip Rental 109,000 64,722 59.38 44,278 60,379 4,343 7.19 District Equip Rental 126,700 74,118 58.50 52,582 67,178 6,940 10.33 Repairs & Maintenance Materials & Services 3,375,900 1,846,674 54.70 1,529,226 2,090,853 (244,179) (11.68) Contracts 834,000 540,927 64.86 293,073 363,130 177,797 48.96 Research & Monitoring Enviro Monitoring 2,375,000 1,630,299 68.64 744,701 1,653,921 (23,622) (1.43) Air Quality Monitoring 155,000 650 0.42 154,350 75,000 (74,350) (99.13) Research 565,000 286,622 50.73 278,378 315,206 (28,584) (9.07) Travel, Meetings & Training Meetings 134,000 127,381 95.06 6,619 132,908 (5,527) (4.16) Training 513,500 233,053 45.39 280,447 233,053 NIA Uncollectable Accounts 15,000 171 1.14 14,829 171 NIA Utilities Diesel For Generators 25,000 0.00 25,000 5,964 (5,964) (100.00) Power 1,075,000 575,021 53.49 499,979 585,274 (10,253) (1.75) Natural Gas 1,400,000 713,263 50.95 686,737 688,216 25,047 3.64 Telephone 125,500 113,265 90.25 12,235 89,024 24,241 27.23 Water 750,000 358,727 47.83 391,273 752,657 (393,930) (52.34) Other Expenses Freight 79,700 42,082 52.80 37,618 46,396 (4,314) (9.30) General & Safety 539,000 198,150 36.76 340,850 339,507 (141,357) (41.64) Aqmd Operating Fees 250,000 124,090 49.64 125,910 98,550 25,540 25.92 Prior Years Expense 20,000 0.00 20,000 86,865 (86,865) (100.00) Other Non-Oper Expense 94,500 39,929 42.25 54,571 61 ,726 (21,797) (35.31) Net J.0.-Matls, Supp, & Serv. 29,983,000 18,507,833 61.73 11,475,167 18,750,474 (242,641) (1.29) Cost Alloc-Corf & Other (470,000) (161,257) 34.31 (308,743) (340,283) 179,026 (52.61) Net J.0.-Matls, Supp, & Serv. 29,513,000 18,346,576 62.16 11,166,424 18,410,191 (63,615) (0.35) Total J. 0. Requirements 58,180,000 38,848,414 66.77 19,331,586 37,453,716 1,394,698 3.72 Less:: Revenue (3,810,000) (2,895,251) 75.99 (914,749) (2,958,709) 63,458 (2.14) Cost Allocation -CORF, Dists, & Other 10,000 23,296 232.96 (13,296) 12,764 10,532 82.51 Net Revenue (3,800,000) (2,871,955) 75.58 (928,045) (2,945,945) 73,990 (2.51) Net J. 0. Expenditures 54,380,000 35,976,459 66.16 181403,541 34,507,771 1,468,688 4.26 Section 2 -Page 6 J. 0. & W. C. Budget Review Summary of Joint Operating Revenues by Line Item For The Nine Months Ended March 31, 1996 % REV REV REV INCR INCR BUDGET THRU THRU REMAINING THRU (DECR) (DECR) DESCRIPTION 1995-96 3/31/96 3/31/96 BUDGET 3/31/95 $ % INTER DIST SEWER USE 1,450,000 1,362,298 93.95 87,702 1,097,931 264,367 24.08 WASTEHAULER 500,000 225,933 45.19 274,067 296,232 (70,299) (23.73) IRWD SLUDGE DISPOSA 650,000 519,993 80.00 130,007 372,919 147,074 39.44 WASTE HAULER PENAL NIA NIA SCRAP SALES 10,000 13,877 138.77 (3,877) 47,384 (33,507) (70.71) OTHER SALES 5,000 1,430 28.60 3,570 974 456 46.82 BIOSOLIDS REUSE 10,000 10,000 6,722 (6,722) (100.00) RENTS & LEASES 70,000 73,201 104.57 (3,201) 51,250 21,951 42.83 CONTRIBUTION IN AID NIA NIA GENERAL NON-OPERATI 100,000 71,693 71.69 28,307 56,791 14,902 26.24 VEHICLE & EQUIP 200,000 141,086 70.54 58,914 141,694 (608) (0.43) MAILING FEE 5,000 170 3.40 4,830 180 (10) (5.56) SAMPLING CHARGES 250,000 189,656 75.86 60,344 202,781 (13,125) (6.47) I PRIOR YEAR INCOME 50,000 50,000 375,953 (375,953) (100.00) POWER SALES 500,000 272,618 54.52 227,382 295,134 (22,516) (7.63) TOTALJO REVENUES 3,800,000 2,871,955 75.58 928,045 2,945,945 (73,990) (2.51) Section 2 -Page 7 1995-96 -3rd Quartrer Report Comparisons of Expenses by Department For The Nine Months Ended March 31, 1996 1995-96 1993-94 1994-95 1994-95 Adopted Year to Date Budget% Department and Division Actual Budget Actual Budget 3/31/96 Realized General Managers Department Executive Management 569,751 1,009,300 1,410,640 763,700 669,302 87.64% Board Secretary 70,207 208,000 58,560 143,600 84,259 58.68% Management Support 54,700 14,760 26.98% Communications 238,966 441,600 218,598 676,400 346,262 51.19% Total 878,924 1,658,900 1,687,798 1,638,400 1,114,583 68.03% Human Resources Department Human Resources Administration 758,055 1,126,500 1,042,149 299,000 262,379 87.75% Human Resources & Training 512,800 362,133 70.62% Safety & Emergency Response 611,200 499,805 81.77% Total 758,055 1,126,500 1,042,149 1,423,000 1,124,317 79.01% Finance Department Finance Administration 1,420,950 1,413,800 1,510,739 1,549,000 1,345,651 86.87% Accounting 555,449 815,600 817,506 1,042,800 698,765 67.01% Purchasing & Warehousing 506,788 647,400 546,640 760,500 484,239 63.67% Total 2,483,187 2,876,800 2,874,885 3,352,3Q0 2,528,655 75.43% Information Technology Department Info Tech Administration 1,146,921 1,699,300 1,251,701 266,100 141,418 53.14% Hardware Support 643,250 532,554 82.79% Software & Plant Automation Support 642,250 845,720 131.68% Total 1,146,921 1,699,300 1,251,701 1,551,600 1,519,692 97.94% Maintenance Department Maintenance Administration 832,102 1,107,100 1,083,020 265,000 324,295 122.38% Maintenance Scheduling 496,400 356,188 71.75% Plant Maintenance 3,290,595 3,458,100 3,197,821 3,261,300 2,414,570 74.04% Collection Facilities Maintenance 299,426 365,900 249,469 342,300 295,929 86.45% Mechanical Maintenance 4,898,622 5,574,700 5,192,640 5,816,600 3,485,037 59.92% Electrical Maintenance 1,767,675 1,902,300 1,856,601 1,964,000 1,291,272 65.75% Instrumentation Maintenance 2,346,636 2,713,800 2,581,127 2,975,100 1,807,661 60.76% Total 13,435,056 15,121,900 14,160,678 15,120,700 9,974,952 65.97% Operations Department Operations Administration 1,241,700 1,025,442 82.58% Plant Operations 15,601,211 15,840,800 14,862,879 22,957,600 14,873,175 64.79% Total 15,601,211 15,840,800 14,862,879 24,199,300 15,898,617 65.70% Technical Services Department Technical Services Administration 243,052 256,200 193,053 833,100 427,817 51 .35% Environmental Management 9,057,047 10,533,300 10,163,150 4,921,400 2,877,213 58.46% Environmental Sciences Lab 3,715,233 3,471,950 3,241,725 3,581,600 2,425,300 67.72% Source Control 991,029 276,750 839,942 773,700 284,757 36.80% Total 14,006,361 14,538,200 14,437,870 10,109,800 6,015,087 59.50% Engineering Department Engineering Administration 46,212 56,000 78,229 125,400 72,799 58.05% Design Engineering 148,366 221,000 281,346 243,800 258,833 106.17% Engineering Planning 54,200 83,195 153.50% Construction Management 296,125 102,600 268,956 361,500 257,684 71 .28% Total 490,703 379,600 628,531 784,900 672,511 85.68% Less Joint Operating Revenues {3,620,154} {3,700,000} {4,649,515} {3,800,000} {2,871 ,955) 75.58% Net Joint Operating Expenses 45,180,264 49,542,000 46,296,976 54,380,000 35,976,459 66.16% Section 2 -Page 8 7 7 l l 1 I } J .J j -l J .. .J J J J.O. & W.C. Budget Review Total Flows -Year-To-Date For The Nine Months Ended 3/31/96 68,000 ~---------~---------~---------~--------~ 67,000 66,000 I I ------------------, ------------------1 --------------- I I I I ------------------L------------------L--------------1 I 1 I ___ , ________ _ I I I en C ,S;! 65,000 ------------------~------------------~---------- ' I -------~------------------' I 'ii C) C ._9 :i 64,000 63,000 I I I I I I I I -----------------r-----------------r ------------------ ----------' --------1 I I 1 I -------------_J ------------------I I I I 62,000 ------------------~-----------------------------------~------------------' 61,000 +------------,..----------..-----------r--------------l Mar-92 Mar-93 Mar-94 Mar-95 Mar-96 Nine Months Ended Section 2 -Page 9 1995-96 3rd Quarter Report Staffing Trends For The Nine Months Ended 3/31/96 710 I 690 I I ------------------T------------------7-------------------r ------------------ 670 I I I -----------------T------------------7-------------------r --------en CP CP ~ 650 -a. E w ------------------T------------------,-------------------r------------------1 I I ' CP l E 630 i= I I I ------------------T------------------7-------------------,------------------ I I I I I ::, &L I ~~--I I I I l I 61oL-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~-~----------------7-----------------~------------, I 590 I I I ------------------T------------------7 -------------------,-----------~------ ! I l I 570 ~-------------,------------.-----------.----------- 6/30/92 6/30/93 6/30/94 6/30/95 3/31/96 ~ Authorized -Actual Section 2 -Page 1 O 1 I l } l ! -j _J ..J J J Plant 1 $5,991,000 43% Const. in Progress $153,000 1% Capital Improvement Program For The Nine Months Ended 3/31/96 Equipment $1,358,000 Special Projects & Studies 11% $203,000 1% CORF Review Plant2 $2,336,000 19% Water Reclamation $104,000 1% lnterplant & Joint Facilities $3,731,000 25% Total Capital Improvement Expenditures -$13,876,000 District No. 1 $810,000 9.83.% District No. 2 $2,452,000 29.43% District No. 14 $523,000 District No. 13 6.31% $80,000 0.96% District No. 11 $519,000 6.32% District No. 7 $687,000 8.39% District No. 3 $2,524,000 30.46% 4.69% District No. 5 $298,000 3.61% Total Capital Improvement Funding -$13,876,000 Section 3 -Page 1 FY 1995-96 3rd Quarter Report Summary of Joint Works Contruction Requirements -Current Year For the Nine Months Ended 3/31/96 1995-96 1995-96 1995-96 Actual Remaining Projected Budget @3/31/96 Budget Outlay A. Reclamation Plant 1 New and Rebudgeted Major Projects: 1. Electrification of Pump Drives, P1-36-1 50,000 469,702 (419,702) 509,702 2. Secondary Treatment Expansion to 80 MGD, P1-36-2 6,335,000 4,372,796 1,962,204 8,572,796 Value Engineering for Secondary Treatment, P1-36-2 165,000 7,330 157,670 7,330 3. Primary Treatment 72 MGD Expansion, P1-37 164,626 5,305 159,321 5,305 Compressed Natural Gas Refueling Station, P1-51 835,374 24,930 810,444 24,930 4. Security & Landscaping, P1-38-1 10,000 87,322 (77,322) 92,322 5. Misc. Mods. Priority Elements P1-38-2 10,000 263,322 (253,322) 273,322 6. Misc. Modifications to Plant 1, P1-38-4 50,000 310,461 (260,461) 315,461 7. Fire Protection, Signs and Water Sys Mods., P1-38-5 900,000 30,044 869,956 530,044 8. Elect!. Facility Modifns &Safety Upgrades ,P1-40-1 2,885 (2,885) 12,885 9. Fae Modifns & Safety Upgrades, P1-40-2 500,000 27,282 472,718 42,282 10. Prim Clarifiers 3,4 & 5 Rehab. P1-41 1,000,000 63,412 936,588 463,412 11. Seimic Retrofit of Non-Structure Systems, P1-43 2,785 (2,785) 12,785 12. Seismic Retrofit Structual Items, P1-44-1,2,3 100,000 48,750 51,250 123,750 13. Chemical and Wastehauler Facility Modifns, P1-46-2,3 11,092 (11,092) 61,092 14. 12KV Distribution System for Support Facilities, P1-47 400,000 13,192 386,808 33,192 15. Misc Architectural & Treatment Pit lmprvmts, P1-48 360,968 13,138 347,830 13,138 Information Technologies Trailer Conplex, P1-48-1 39,032 39,032 62,170 23. Miscellaneous Special Projects Pint. 1, P1-49 50,000 50,000 24. Misc. Job Plan Projects (See Schedule C) 500,000 197,999 302,001 247,999 Sub Total -Reclamation Plant 1 11,470,000 5,990.779 5,479,221 11,403,917 B. Plant 2 New and Rebudgeted Major Projects: 1. Support Facilities and Site Improvements a. Operations Building, P2-23-5-1 350,000 91,868 258,132 101,868 b. Warehouse Building, P2-35-2 959,000 25,865 933,135 25,865 Renovation of Existing Whse, P2-23-6-2R 441,000 730 440,270 730 c. Maintenance Building , P2-35-3 1,400,000 82,770 1,317,230 582,770 d. Phase II Site & Security Imp., P2-35-5 1,629 (1,629) 26,629 e. Construction Management Office, M-044(P2-35-4) 250,000 226,543 23,457 231,543 2. Rehab 7 Digesters, P2-39-1,2,3 250,000 99,060 150,940 149,060 3. Primary Treatment 24 MGD Expansion, P2-41 859 (859) 859 4. Secondary Treatment Expansion, P2-42-2 1,400,000 1,213,871 186,129 1,318,871 5. Priority Misc. Mod. , P2-43-1 50,000 72,142 (22,142) 122,142 6. Misc. Modifications , P2-43-3 10,000 85,796 (75,796) 87,796 7. Plant 2 Influent Diversion 200,000 200,000 8. Fire Protection, Signs & Water Sys Modifns, P2-46 1,900,000 40,304 1,859,696 540,304 9. Electl Fae Modifns & Safety Upgrades, P2-47-1 22,056 (22,056) 32,056 10. Fae Modifns & Safety Upgrades, P2-47-2 500,000 38,058 461,942 48,058 11. Primary Clarifier Rehab. P2-48 500,000 54,269 445,731 254,269 12. Seimic Retrofit of Non-Structure Systems, P2-50 15,269 (15,269) 315,269 13. Seismic Retrofit, Structural Items P2-53-2,3,4,5,6 50,000 93,234 (43,234) 143,234 14. Chemical and Plant Water Modifns, P2-55 1,400,000 55,090 1,344,910 355,090 15. Misc Seismic Modifns & Flare Improvements, P2-56 250,000 1,671 248,329 2,671 16. Miscellaneous Projects Special Projects Plant 2 50,000 50,000 20. Reclaimed Water System Pint. 2 75,000 75,000 5,000 21 . Misc. Job Plan Projects (See Schedule D) 500,000 114,549 385,451 189,549 Sub-Total -Treatment Plant 2 10,535,000 2,335,633 8,199,367 4,533,633 Section 3 -Page 2 CORF Review Summary of Joint Works Contruction Re·quirements -Current Year For the Nine Months Ended 3/31/96 1995-96 1995-96 1995-96 Actual Remaining Projected Budget @3/31/96 Budget Outlay C. Water Reclamation Regional Expansion: Reclmation Plant No. 1 Water Quality Management Study 153 153 153 1 OCSD/OCWD Regional Water Reclamation Plant Study 99,847 103,683 (3,836) 108,683 Sub-Total -Water Reclamation Regional Expansion 100,000 103,836 (3,836) 108,836 D. lnterplant and Joint Facilities 1. Support Facilities and Site Improvements a. Demolition of Old Lab for Offices, J-11-1 195,390 18,646 176,744 18,646 Interior Asbestos Removal from Old Lab, J-11-1A 4,610 4,610 54,610 b. Central Lab Expansion J-17-3 90,233 4,224 86,009 6,224 Purch & lnstl of Racks to Secure Gas Cylinders & Dewars 27,467 1,713 25,754 1,713 Office Reconfigurated for Enviorn Mgmt Area 42,300 42,300 2. Outfall & Booster Pump Stations a. Surge Tower Replacement, J-34-1 1,185,000 23,270 1,161,730 33,270 3. Computerized Fae. Records and Dwg. Sys. J-25-1 419,399 195,388 224,011 215,388 New Safety Division Offices, J-41-1 80,100 7,674 72,426 7,674 l Restoration of Old Laboratory for H. R. Dept, J-11-2 501 501 501 4. Electl. Power Systems Rehab. Studies J-25-2,3&4 200,000 73,938 126,062 128,938 5. Plants 1&2 Monitor/Control Sys, J-31-1,2,3,4,5 1,600,666 1,895,842 (295,176) 2,120,842 SCADA Retrofit Hardware Platform at Pits 1 & 2 273,734 273,734 323,734 Power Bldg# 1 Air Conditioning & Modifn for J-31 25,600 25,600 6. Standby Power Reliability Modifns, J-33-1,2 1,050,000 229,228 820,772 284,228 8. Biosolids Disposal Projects b. Land Acquisition 431,535 (431,535) 531,535 9 .. District Information Management Network a. Maint. & Oper Mgmnt Computer System 100,000 100,000 b. Lab Information Management System Upgrades 116,169 116,169 c. Financial Information System 600,000 90,208 509,792 110,208 d. Network System Integration 237,300 16,144 221,156 35,000 Network Integration Consulting 42,700 14,484 28,216 14,484 Replace Fuel System Control 60,000 60,000 e. CD-Optical Data Archiving 50,000 50,000 10. In-Plant Sampling System Modifn 69,740 69,740 Final Sampler System Upgrades 30,260 18,867 11,393 18,867 11. Improvements to Central Generation 257,800 257,800 Boiler Chemical Dosing System 2,800 13,935 (11,135) 13,935 Piping Insulation Addition 4,800 332 4,468 332 Steam System Modifn 34,600 34,600 12. Cable Tray Improvements 100,000 100,000 13. Misc Job Plan Projects (See Schedule E) 500,000 417,063 82,937 517,063 Transfer from D. Items 10 a & b Projects Above 8,831 8,831 Sub-Total -lnterplant & Joint 7,410,000 3,731,336 3,678,664 4,437,192 Sub Total -Major Projects 29,515,000 12,161,584 17,353,416 20,483,578 Section 3 -Page 3 FY 1995-96 3rd Quarter Report Summary of Joint Works Contruction Requirements -Current Year For the Nine Months Ended 3/31/96 1995-96 1995-96 1995-96 Actual Remaining Projected Budget @3/31/96 Budget Outla)'. E. Special Projects, Studies & Research 1. Master Planning Issues a. Pers/Admin. Support Fae @ Pit 1 J-26,J-30 8,833 2,024 6,809 2,024 Districts' Office Space Utilization Study, J-38-1 66,167 66,167 118,000 b. Peak Hydraulic Discharge/Outfall Studies 347,439 347,439 152,561 Determination of Peak Hydraulic Discharge 52,561 52,561 52,561 c. Coll, Trtmnt & Disp Fae. Strategic Study 200,000 200,000 d. NPDES Permit Support 100,000 48,546 51,454 73,546 2. Air Quality Control Program a. Toxics and ROG Control: Biotrickling filter R & D 90,000 33,830 56,170 33,830 b. Air Emissions: Source Control Feasibility Study/Metal 25,000 25,000 c. Air Quality Management Implementation Plan d. Biofilter for Pump Stations 25,000 25,000 e. A.Q. Database Development 25,000 25,000 f. Central Gen Parameter Monitoring 75,000 75,000 Sub-Total -Special Projects 1,015,000 203,128 811,872 432,522 F. Equipment Items 3,000,000 1,357,505 1,642,495 1,657,505 Sub-Total -Joint Works Capital Requirements 33,530,000 13,722,217 19,807,783 22,573,605 Construction In Progress -Completed At 6/30/95 153,187 (153,187} Total Joint Works Capital Requirements 33,530,000 13,875,404 19,654,596 22,573,605 Section 3 -Page 4 CORF Review Summary of Joint Works Construction Requirement -Project Life For The Nine Months Ended 3/31/96 Current Total Total 6/30/95 Year Projected Estimated 1 Estimated Accumulated Projected Cost at Future Cost Cost Cost 6/30/96 Cost A. Reclamation Plant 1 New and Rebudgeted Major Projects: 1. Electrification of Pump Drives, P1-36-1 1,700,000 1,066,911 509,702 1,576,613 123,387 2. Secondary Treatment Expansion to 80 MGD, P1-36 46,835,000 118,137 8,572,796 8,690,933 38,144,067 Value Engineering for Secondary Treatment, P1-3 165,000 7,330 7,330 157,670 3. Primary Treatment 72 MGD Expansion, P1-37 37,289,626 166,613 5,305 171,918 37,117,708 Compressed Natural Gas Refueling Station, P1-51 835,374 24,930 24,930 810,444 4. Security & Landscaping, P1-38-1 1,510,000 1,573,145 92,322 1,665,467 (155,467) 5. Misc. Mods. Priority Elements P1-38-2 4,810,000 5,007,980 273,322 5,281,302 (471,302) 6. Misc. Modifications to Plant 1, P1-38-4 2,550,000 1,927,039 315,461 2,242,500 307,500 7. Fire Protection, Signs and Water Sys Mods., P1-38-3,060,000 463,663 530,044 993,707 2,066,293 8. Electl. Facility Modifns & Safety Upgrades ,P1-40-1 8,625,000 133,378 12,885 146,263 8,478,737 9. Fae Modifns & Safety Upgrades, P1-40-2 2,025,000 288,370 42,282 330,652 1,694,348 10. Prim Clarifiers 3,4 & 5 Rehab. P1-41 2,350,000 251,454 463,412 714,866 1,635,134 11. Seimic Retrofit of Non-Structure Systems, P1-43 4,250,000 117,194 12,785 129,979 4,120,021 12. Seismic Retrofit Structual Items, P1-44-1,2,3 4,250,000 922,135 123,750 1,045,885 3,204,115 13. Chemical and Wastehauler Facility Modifns, P1-46-3,020,000 401,018 61,092 462,110 2,557,890 14. 12KV Distribution System for Support Facilities, P1-2,650,000 141,956 33,192 175,148 2,474,852 15. Misc Architectural & Treatment Pit lmprvmts, P1-48 435,000 107,345 13,138 120,483 314,517 Information Technologies Trailer Conplex, P1-48-1 400,000 62,170 62,170 337,830 16. 40 MGD Oxygen Activated Sludge & DAF's 65,463,000 65,463,000 17. Belt Presses (4 Units) 14,300,000 14,300,000 18. Solids Storage (4 Bins) 10,177,000 10,177,000 19. Digesters: 2@ 110' Diameter 9,100,000 9,100,000 20. 12kv Electrical Power Distribution 2,477,000 2,477,000 21. Emergency Sewage Bypass System 1,922,000 1,922,000 22. Remove Trickling Filters 1 & 3 1,300,000 1,300,000 23. Miscellaneous Special Projects Pint. 1, P1-49 4,385,000 4,385,000 24. Misc. Job Plan Projects (See Schedule C) 22,125,000 66,054 247,999 314,053 21,810,947 25. Other Master Plan Projects a. Headworks No. 1 Rebuild, 2003 14,950,000 14,950,000 b. Headworks No.2 Impeller/Pump Speed, 2016 2,600,000 2,600,000 c. Remove Trickling Filters 2 & 4, 2007 1,300,000 1,300,000 d. 40 Mgd Oxygen Act'd Sludge &OAF, 2017 34,000,000 34,000,000 e. 11 O' ft Digesters, 2003 & 2012 18,200,000 18,200,000 f. 4 Belt Presses, 2004 10,920,000 10,920,000 g. 12 KV Power Distribution, 2001-2012 1,099,000 1,099,000 h. Standby Power Generation, 2005 & 2015 4,914,000 4,914,000 i. 72 Mgd Primary Treatment, 2004 & 2012 32,500,000 32,500,000 Sub Total -Reclamation Plant 1 378,492,000 12,752,392 11,403,917 24,156,309 354,335,691 B. Plant 2 New and Rebudgeted Major Projects: 1. Support Facilities and Site Improvements a. Operations Building, P2-23-5-1 3,550,000 3,398,576 101,868 3,500,444 49,556 b. Warehouse Building, P2-35-2 3,379,000 308,582 25,865 334,447 3,044,553 Renovation of Existing Whse, P2-23-6-2R 441,000 730 730 440,270 c. Maintenance Building , P2-35-3 4,000,000 263,064 582,770 845,834 3,154,166 d. Phase II Site & Security Imp., P2-35-5 2,475,000 176,309 26,629 202,938 2,272,062 1 e. Construction Management Office, M-044(P2-35-4) 690,000 277,094 231,543 508,637 181,363 2. Rehab 7 Digesters, P2-39-1 ,2,3 14,225,000 529,657 149,060 678,717 13,546,283 3. Primary Treatment 24 MGD Expansion, P2-41 14,505,000 4,549 859 5,408 14,499,592 4. Secondary Treatment Expansion, P2-42-2 18,000,000 16,277,999 1,318,871 17,596,870 403,130 5. Priority Misc. Mod., P2-43-1 4,850,000 5,011,628 122,142 5,133,770 (283,770) 6. Misc. Modifications , P2-43-3 2,510,000 2,640,696 87,796 2,728,492 (218,492) 7. Plant 2 Influent Diversion 2,500,000 2,500,000 Section 3 -Page 5 1995-96 3rd Quarter Report Summary of Joint Works Construction Requirement -Project Life For The Nine Months Ended 3/31/96 Current Total Total 6/30/95 Year Projected Estimated Estimated Accumulated Projected Cost at Future Cost Cost Cost 6/30/96 Cost B. Plant 2 New and Rebudgeted Major Projects: (cont.) 8. Fire Protection, Signs & Water Sys Modifns, P2-46 4,615,000 440,101 540,304 980,405 3,634,595 9. Electl Fae Modifns & Safety Upgrades, P2-47-1 3,450,000 113,362 32,056 145,418 3,304,582 10. Fae Modifns & Safety Upgrades, P2-47-2 4,015,000 290,452 48,058 338,510 3,676,490 11. Primary Clarifier Rehab. P2-48 6,800,000 474,753 254,269 729,022 6,070,978 12. Seimic Retrofit of Non-Structure Systems, P2-50 4,800,000 165,811 315,269 481,080 4,318,920 13. Seismic Retrofit, Structural Items P2-53-2,3,4,5,6 8,410,000 3,262,714 143,234 3,405,948 5,004,052 14. Chemical and Plant Water Modifns, P2-55 4,200,000 335,527 355,090 690,617 3,509,383 15. Misc Seismic Modifns & Flare Improvements, P2-56 525,000 19,648 2,671 22,319 502,681 16. Miscellaneous Projects Special Projects Plant 2 4,550,000 4,550,000 17. Solids Storage: 2 Bins 5,200,000 5,200,000 18. Additional 105 Foot Digester 3,900,000 3,900,000 19. Plant Water Pump Station 1,170,000 1,170,000 20. Reclaimed Water System Pint. 2 4,820,000 5,000 5,000 4,815,000 21 . Misc. Job Plan Projects (See Schedule D) 22,250,000 103,950 189,549 293,499 21,956,501 22. Other Master Plan Projects a. Replace Primary Basins A, B, C, 2006 11,700,000 11,700,000 b. Standby Power Generation, 2005 & 2015 10,000,000 10,000,000 c. Monitoring and Control System, 2005 520,000 520,000 Sub-Total -Treatment Plant 2 172,050,000 34,129,352 4,533,633 38,662,985 1331387,015 C. Water Reclamation Regional Expansion 74,820,000 74,820,000 Reclmation Plant No. 1 Water Quality Management 280,000 1,540 153 1,693 278,307 OCSD/OCWD Regional Water Reclamation Plant S 400,000 148,837 108,683 257,520 142,480 Sub-Total -Water Reclamation Regional Expansi 75,500,000 150,377 108,836 259,213 75,240,787 D. lnterplant and Joint Facilities 1. Support Facilities and Site Improvements a. Demolition of Old Lab for Offices, J-11-1 76,800 27,858 18,646 46,504 30,296 Interior Asbestos Removal from Old Lab, J-11-1A 153,200 54,610 54,610 98,590 b. Central Lab Expansion J-17-3 840,233 6,224 6,224 834,009 Purch & lnstl of Racks to Secure Gas Cylinders 27,467 15,749 1,713 17,462 10,005 Office Reconfigurated for Enviorn Mgmt Area 42,300 42,300 c. Demolition or Reuse of Old Control Center 245,000 245,000 d. Demolition of Support Bldg.@Pt2, J-27 190,000 109,504 109,504 80,496 2. Outfall & Booster Pump Stations a. Surge Tower Replacement, J-34-1 6,500,000 768,699 33,270 801,969 5,698,031 b. Outfall Reliability & Pumping Annex OOBS "C" J-3 31,085,000 31,085,000 c. Ext & Repl 7B"to Deep Water w/120" Outfall 92,050,000 92,050,000 3. Computerized Fae. Records and Dwg. Sys. J-25-1 4,254,900 209,406 215,388 424,794 3,830,106 New Safety Division Offices, J-41-1 80,100 7,674 7,674 72,426 Restoration of Old Laboratory for H. R. Dept, J-1 375,000 501 501 374,499 4. Electl. Power Systems Rehab. Studies J-25-2,3&4 1,225,000 14,961 128,938 143,899 1,081,101 5. Plants 1&2 Monitor/Control Sys, J-31-1,2,3,4,5 8,824,400 2,127,616 2,120,842 4,248,458 4,575,942 SCADA Retrofit Hardware Platform at Pits 1 & 2 2,200,000 423,684 323,734 747,418 1,452,582 Power Bldg# 1 Air Conditioning & Modifn for J-31 25,600 25,600 6. Standby Power Reliability Modifns, J-33-1,2 14,575,000 445,593 284,228 729,821 13,845,179 7. Bushard lnterplant Trunk Replacement 31,000,000 31,000,000 8. Biosolids Disposal Projects a. Compost Demonstration Plant 9,000,000 9,000,000 b. Land Acquisition 22,000,000 531,535 531,535 21,468,465 c. Landfill Development Phase I 28,600,000 28,600,000 d. Compost Facility 50,000,000 50,000,000 e. Biosolids Disp. Landfill Phase II 2011 15,600,000 15,600,000 f. Biosolids Disp. Equip Phase I & II 2001 11,500,000 11,500,000 g. Electrical Power Distribution, 12kv 2,707,000 2,707,000 Section 3 -Page 6 CORF Review Summary of Joint Works Construction Requirement -Project Life For The Nine Months Ended 3/31/96 Current Total Total 6/30/95 Year Projected Estimated Estimated Accumulated Projected Cost at Future Cost Cost Cost 6/30/96 Cost D. lnterplant and Joint Facilities (cont.) 9 .. District Information Management Network a. Maint. & Oper Mgmnt Computer System 1,050,000 896,593 896,593 153,407 b. Lab Information Management System Upgrades 505,000 47,773 47,773 457,227 c. Financial Information System 970,000 209,073 110,208 319,281 650,719 d. Network System Integration 717,300 1,786 35,000 36,786 680,514 Network Integration Consulting 42,700 14,484 14,484 28,216 Replace Fuel System Control 60,000 60,000 e. CD-Optical Data Archiving 125,000 125,000 10. In-Plant Sampling System Modifn 189,740 189,740 Final Sampler System Upgrades 30,260 447 18,867 19,314 10,946 11. Improvements to Central Generation 607,800 607,800 Boiler Chemical Dosing System 2,800 13,935 13,935 (11,135) Piping Insulation Addition 4,800 332 332 4,468 Steam System Modifn 34,600 34,600 12. Cable Tray Improvements 2,400,000 2,400,000 13. Misc Job Plan Projects (See Schedule E) 16,525,000 313,520 517,063 830,583 15,694,417 l Sub-Total -lnterplant & Joint 356,442,000 5,647,142 4A37,192 10,084,334 346,357,666 Sub Total -Major Projects 982,484,000 52,679,263 20,483,578 73,162,841 909,321,159 E. Special Projects, Studies & Research 1. Master Planning Issues a. Pers/Admin. Support Fae@ Pit 1 J-26,J-30 96,520 274,935 2,024 276,959 (180,439) Districts' Office Space Utilization Study, J-38-1 201,480 118,000 118,000 83,480 b. Peak Hydraulic Discharge/Outfall Studies 1,699,000 152,561 152,561 1,546,439 Determination of Peak Hydraulic Discharge 1,151,000 52,561 52,561 1,098,439 c. Coll, Trtmnt & Disp Fae. Strategic Study 4,225,000 4,225,000 d. NPDES Permit Support 1,175,000 427,445 73,546 500,991 674,009 2. Air Quality Control Program a. Toxics and ROG Control: Biotrickling filter R & D 440,000 304,697 33,830 338,527 101,473 b. Air Emissions: Source Control Feasibility Study/Me 75,000 75,000 c. Air Quality Management Implementation Plan 150,000 21,640 21,640 128,360 d. Biofilter for Pump Stations 50,000 50,000 e. A.Q. Database Development 75,000 75,000 f. Central Gen Parameter Monitoring 350,000 3,519 3,519 346,481 Sub-Total -Special Projects 9,688,000 1,032,236 432,522 1,464,758 8,223,242 F. Equipment Items 52,725,000 1,666,785 1,657,505 3,324,290 49,400,710 Sub-Total -Joint Works Capital Requirements 1,044,897,000 55,378,284 22,573,605 77,951,889 966,945,111 Construction In Progress -Completed At 6/30/95 95,017,660 95,017,660 (95,017,660) Total Joint Works Capital Requirements 1,044,897,000 150,395,944 22,573,605 172,969,549 871,927,451 Section 3 -Page 7 This page was intentionally left blank Section 3 -Page 8 l r J Budget Review by District All Districts Operating and Capital Facilities Budget Review For The Nine Months Ended 3/31/96 Operating Budget Review 1995-96 Year-To-Remaining Budget Date Budget REVENUES: Tax Levy (No. 11 Bond Fund Only) 17,000 10,196 6,804 Tax Allocations/Subventions (Share of 1 %) 31,146,000 18,418,061 12,727,939 Federal and State Construction Grants Connection Fees 4,748,000 6,136,403 (1,388,403) IRWD Fees 9,100,000 3,281,091 5,818,909 Other Fees 67,511,000 44,120,632 23,390,368 Sale of Capacity Rights 644,000 517,299 126,701 Interest & Misc. Receipts 15,799,000 17,722,706 (1,923,706) Other 2,000 2,000 Total Revenues 128,967,000 90,206,388 38,760,612 OUTLAYS: Share of Joint Works Trmt. Plant 33,530,000 13,875,396 19,654,604 District Trunk Sewer Construction 13,420,000 10,303,748 3,116,252 COP/Bond Retirement and Interest Expense 34,618,000 25,231,596 9,386,404 Share of Joint Works Operating Expenses 54,380,000 35,976,459 18,403,541 District Operating & Other Expenditures 9,592,000 6,508,253 3,083,747 Total Outlays 145,540,000 91,895,452 53,644,548 Capital Facilities Budget Review Balance Adjustments Transfer to 7/1/95 & Additions Fixed Assets CONSTRUCTION IN PROGRESS: Districts 1-14 Construction in Progress 22,693,603 10,303,748 (13,859,846) Share of Joint Works 55 ,099,663 13,875,396 (2,772,708) Sub-Total 77,793,266 24,179,144 (16,632,554) COMPLETED PROPERTY, PLANT & EQUIP: Land and Property Rights 2,645,921 Collection Lines and Pump Stns. 277,817,024 (504,803) 13,641,876 Treatment Facilities 19,922 Disposal Facilities 101,528 General Plant and Admin. Facil. 855,176 24,861 Equity in Joint Treatment Facil. 692,378,501 (6,006,833) 2,772,708 Other Assets at Cost Less Amort. 91,868 (95,794) 193,109 Sub-Total 973,909,940 (6,607,430) 16,632,554 Total Property, Plant & Equipment & CIP 1,051 ,703,206 17,571 ,714 Section 4 -Page 1 Year-To-Date %Expended 59.98% 59.13% 0.00% 129.24% 36.06% 65.35% 80.33% 112.18% 0.00% 69.95% 41.38% 76.78% 72.89% 66.16% 67.85% 63.14% Balance 9/30/95 19,137,505 66,202,351 85,339,856 2,645,921 290,954,097 19,922 101,528 880,037 689,144,376 189,183 983,935,064 1,069,274,920 1995-96 3rd Quarter Report District 1 -Operating and Capital Facilities Budget Review For The Nine Months Ended 3/31/96 Operating Budget Review 1995 -96 Year-To-Remaining Year-to-Date Budget Date Budget %Expended REVENUES: Tax Levy (Bond Fund(s) Only) 0.00% Tax Allocations/Subventions (Share of 1 %) 2,105,000 1,083,451 1,021,549 51.47% Federal and State Construction Grants 0.00% Connection Fees 71,000 28,031 42,969 39.48% Other Fees 6,447,000 4,094,827 2,352,173 63.52% Sale of Capacity Rights 63,000 51,371 11,629 81.54% Interest & Misc. Receipts 925,000 1,280,848 (355,848) 138.47% Other 0.00% Total Revenues 9,611,000 6,538,528 3,072,472 68.03% OUTLAYS: Share of Joint Works Trmt. Plant 3,279,000 1,365,259 1,913,741 41.64% District Trunk Sewer Construction 75,000 75,000 0.00% COP/Bond Retirement and Interest Expense 4,289,000 3,243,740 1,045,260 75.63% Share of Joint Works Operating Expenses 5,411,000 3,536,486 1,874,514 65.36% District Operating & Other Expenditures 587,000 425,689 161,311 72.52% Total Outlays 13,641,000 8,571,174 5,069,826 62.83% Capital Facilities Budget Review Balance Adjustments Transfer to Balance 7/1/95 &Additions Fixed Assets 3/31/96 CONSTRUCTION IN PROGRESS: District No. 1 Projects Sub-Total Share of Joint Works 5,414,989 1,365,259 (272,557) 6,507,69f Sub-Total 5,414,989 1,365,259 (272,557) 6,507,691 COMPLETED PROPERTY, PLANT & EQUIP: Land and Property Rights 81,398 81,398 Collection Lines and Pump Stns. 6,902,929 6,902,929 Treatment Facilities Disposal Facilities 11,593 11,593 General Plant and Admin. Facil. 58,241 58,241 Equity in Joint Treatment Facil. 69,566,209 (590,472) 272,557 69,248,294 Other Assets at Cost Less Amert. 1,424 (855) 569 Sub-Total 76,621,794 (591,327) 272,557 76,303,024 Total Property, Plant & Equipment & CIP 82,036,783 773,932 82,810,715 Section 4 -Page 2 l Budget Review by District District No. 2 -Operating and Capital Facilities Budget Review For The Nine Months Ended 3/31/96 Operating Budget Review 1995 -96 Year-To Remaining Budget Date Budget REVENUES: Tax Levy (Bond Fund(s) Only) Tax Allocations/Subventions (Share of 1%) 9,515,000 5,639,917 3,875,083 Federal and State Construction Grants Connection Fees 2,350,000 2,848,242 (498,242) Other Fees 22,633,000 13,721,638 8,911,362 Sale of Capacity Rights 191,000 149,510 41,490 Interest & Misc. Receipts 4,655,000 5,108,329 (453,329) Other 2,000 2,000 Total Revenues 39,346,000 27,467,636 11,878,364 OUTLAYS: Share of Joint Works Trmt. Plant 9,921,000 4,119,125 5,801,875 District Trunk Sewer Construction 700,000 414,729 285,271 COP/Bond Retirement and Interest Expense 11,392,000 8,565,771 2,826,229 Share of Joint Works Operating Expenses 17,619,000 10,587,872 7,031,128 District Operating & Other Expenditures 2,202,000 1,812.366 389,634 Total Outlays 41,834,000 25,499,863 16,334,137 Cagital Fa~ilities Budget Review Balance Adjustments Transfer to 7/1/95 &Additions Fixed Assets CONSTRUCTION IN PROGRESS: 2-14-5R2 SARI Manhole 155,846 166,258 2-7A Atwood Subtrunk@ 91/57 Interchange 5,319 7,321 2-38 Olive Subtrunk & SAR Crossings for S.A. Widening 13,624 2-37 Miscellaneous Improvements to Pump Stations 325 3,115 2-36 Sewer Encasements for AT & SF Commuter Rail 64,648 115,608 (180,256) 2-9-R1 Cypress Ave. Subtrunk Sewer Rehab. 2,894,115 119,406 (3,013,507) Misc Chgs to Closed Work Orders 6,184 2,364 2-35 Euclid Trunk & Interceptor 8,167 657 Sub-Total 3,148,228 414,729 (3,193,763) Share of Joint Works 16,180,235 4,119,125 (816,008) Sub-Total 19,328,463 4,533,854 (4,009,771) COMPLETED PROPERTY, PLANT & EQUIP: Land and Property Rights 517,694 Collection Lines and Pump Stns. 93,701,134 3,193,763 Treatment Facilities Disposal Facilities 33,172 General Plant and Admin. Facil. 215,420 Equity in Joint Treatment Facil. 205,201,314 (1,767,811) 816,008 Other Assets at Cost Less Amort. 60,100 (15,331) Sub-Total 299,728,834 (1,783,142) 4,009,771 Total Property, Plant & Equipment & CIP 319,057,297 2,750,712 Section 4 -Page 3 Year-To-Date %Expended 0.00% 59.27% 0.00% 121.20% 60.63% 78.28% 109.74% 0.00% 69.81% 41.52% 59.25% 75.19% 60.09% 82.31% 60.95% Balance 3/31/96 322,104 12,640 13,624 3,440 14 8,548 8,824 369,194 19,483,352 19,852,546 517,694 96,894,897 33,172 215,420 204,249,511 44,769 301,955,463 321,808,009 1995-96 3rd Quarter Report District No. 3 -Operating and Capital Facilities Budget Review For The Nine Months Ended 3/31/96 Operating Budget Review 1995 -96 Year-To-Remaining Year-To-Date Budget Date Budget % Expended REVENUES: Tax Levy (Bond Fund(s) Only) 0.00% Tax Allocations/Subventions (Share of 1 %) 10,615,000 6,351,674 4,263,326 59.84% Federal and State Construction Grants 0.00% Connection Fees 1,410,000 1,599,056 (189,056) 113.41% Other Fees 22,314,000 14,473,444 7,840,556 64.86% Sale of Capacity Rights 196,000 147,293 48,707 75.15% Interest & Misc. Receipts 5,070,000 5,665,506 (595,506) 111.75% Other 0.00% Total Revenues 39,605,000 28,236,973 11,368,027 71.30% OUTLAYS: Share of Joint Works Trmt. Plant 10,213,000 4,149,699 6,063,301 40.63% District Trunk Sewer Construction 5,288,000 3,417,916 1,870,084 64.64% COP/Bond Retirement and Interest Expense 10,694,000 7,775,894 2,918,106 72.71% Share of Joint Works Operating Expenses 16,564,000 10,958,429 5,605,571 66.16% District Operating & Other Expenditures 2,516,000 1,652,696 863,304 65.69% Total Outlays 45,275,000 27,954,634 17,320,366 61 .74% Capital Eacilities !;ludget Review Balance Adjustments Transfer to Balance 7/1/95 &Additions Fixed Assets 3/31/96 CONSTRUCTION IN PROGRESS: 3-25 Orange-Western Sub-Trunk Relief Sewer 56,609 56,609 11-17 Slater P/S Upgrade -3 & 11 908,481 251,508 1,159,989 3-36 Techite Pipe Replacement 1,563,292 357,127 1,920,419 3-36R Repl. Westminster Ave. Force Mains 222,510 2,361,219 2,583,729 3-37 1-5 Widening Project 8,177 116 8,293 3-38 Miller-Holder Trunk Sewer Improvements 410,491 27,526 438,017 3-38-1 lmprov. to Miller-Holder Trunk Sewer 2,420 1,300 3,720 3-38-2 lmprov. to Miller-Holder Trunk Sewer 796,678 399,461 1,196,139 3-38-3 lmprov. to Miller-Holder Trunk Sewer 4,780 12,358 17,138 3-39 Miller-Holder Easement 8,752 8,752 Miscellaneous Charges to Closed W.O. 1,629 7,301 8,930 Sub-Total 3,983,819 3,417,916 7,401,735 Share of Joint Works 16,860,104 4,149,699 (844,567) 20,165,236 Sub-Total 20,843,923 7,567,615 (844,567) 27,566,971 COMPLETED PROPERTY, PLANT & EQUIP: Land and Property Rights 280,231 280,231 Collection Lines and Pump Stns. 62,069,818 62,069,818 Treatment Facilities 9,922 9,922 Disposal Facilities 28,419 28,419 General Plant and Admin. Facil. 317,991 317,991 Equity in Joint Treatment Facil. 211,213,109 (1 ,829,681) 844,567 210,227,995 Other Assets at Cost Less Amort. Sub-Total 273,919,490 (1,829,681) 844,567 272,934,376 Total Property, Plant & Equipment & CIP 294,763,413 5,737,934 300,501,347 Section 4 . Page 4 Budget Review by District District #5 -Operating and Capital Facilities Budget Review For The Nine Months Ended 3/31/96 Operating Budget Review 1995 -96 Year To-Remaining Budget Date Budget REVENUES: Tax Levy (Bond Fund(s) Only) Tax Allocations/Subventions (Share of 1%) 2,415,000 1,537,869 877,131 Federal and State Construction Grants Connection Fees 47,000 157,991 (110,991) Other Fees 2,719,000 1,929,106 789,894 Sale of Capacity Rights 23,000 20,104 2,896 Interest & Misc. Receipts 1,295,000 1,334,868 (39,868) Other Total Revenues 6,499,000 4,979,938 1,519,062 OUTLAYS: Share of Joint Works Trmt. Plant 1,204,000 461,537 742,463 District Trunk Sewer Construction 500,000 507,896 (7,896) COP/Bond Retirement and Interest Expense 2,013,000 1,540,169 472,831 Share of Joint Works Operating Expenses 2,007,000 1,298,750 708,250 District Operating & Other Expenditures 765,000 593,127 171,873 Total Outlays 6,489,000 4,401 ,479 2,087,521 Capital Ea~ilities Budget Re~iew Balance Adjustments Transfer to 7/1/95 &Additions Fixed Assets CONSTRUCTION IN PROGRESS: 5-33 Bay Bridge PIS lmpr. 2,224 14 (2,238) 5-35 So. Coast Trunk Sewer-Incl Phases 1 & 2 2,481 5-36 Crystal Cove PIS 8,477 5-34-2 Bayside Drive Trunk 109,689 Miscellaneous Charges to Closed W.O. 1,041 10,796 5-31 Coast Highway Force Main Replacement 5 & 6 5-32 Bitter Pt & Rocky Pt P/S lmprov. 5 & 6 1,921 5 (1,926) 5-37-3&4 PCH Gravity Swr Rehab 5 & 6 22,036 367,119 5-39 Siphon 5 & 6 695,190 16 (695,190) Bay Bridge P/S Lighting 5 & 6 4,893 3,844 (8,274) Bay Bridge P/S Platform 1,956 Bitterpoint P/S Fan Upgrade 2,881 Hydrogen Peroxide Trials 5 & 14 714 618 Sub-Total 728,019 507,896 (707,628) Share of Joint Works 2,028,462 461,537 (100,095) Sub-Total 2,756,481 969.433 (807,723) COMPLETED PROPERTY, PLANT & EQUIP: Land and Property Rights 69,740 Collection Lines and Pump Stns. 33,827,105 (361,420) 707,628 Treatment Facilities 7,347 Disposal Facilities 7,115 General Plant and Admin. Facil. 39,799 (397) Equity in Joint Treatment Facil. 25,554,914 (216,847) 100,095 Other Assets at Cost Less Amert. 18,009 (18,009) Sub-Total 59,524,029 (596,673) 807,723 Total Property, Plant & Equipment & CIP 62,280,510 372,760 Section 4 -Page 5 Year-To-Date %Expended 0.00% 63.68% 0.00% 336.15% 70.95% 87.41% 103.08% 0.00% 76.63% 38.33% 101.58% 76.51% 64.71% 77.53% 67.83% Balance 3/31/96 2,481 8,477 109,689 11,837 389,155 16 463 1,956 2,881 1,332 528,287 2,389,904 2,918,191 69,740 34,173,313 7,347 7,115 39,402 25,438,162 59,735,079 62,653,270 1995-96 3rd Quarter Report District No. 6 -Operating and Capital Facilities Budget Review For The Nine Months Ended 3/31/96 REVENUES: Tax Levy (Bond Fund(s) Only) Tax Allocations/Subventions (Share of 1%) Federal and State Construction Grants Connection Fees Other Fees Sale of Capacity Rights Interest & Misc. Receipts Other Total Revenues OUTLAYS: Share of Joint Works Trmt. Plant District Trunk Sewer Construction COP/Bond Retirement and Interest Expense Share of Joint Works Operating Expenses District Operating & Other Expenditures Total Outlays Operating Budget Review 1995 -96 Budget 1,225,000 47,000 3,400,000 31,000 747,000 5,450,000 1,596,000 1,735,000 1,468,000 2,599,000 251,000 7,649,000 Year-To- Date 711,930 42,563 2,189,547 20,749 915,325 3,880,114 611,306 1,634,843 945,510 1,687,296 223,991 5,102,946 Capital Facilities Budget Review CONSTRUCTION IN PROGRESS: Misc. Chg. to Closed Work Order 14-1-1 A & B Gisler Int., 14-1-2 Baker Street 6-12 Fairview Relief 6-13 Air Base Sewers Abandonment Airbase Flowmeter Replacement 5-32 Bitter Pt & Rocky Pt P/S lmprov. 5 & 6 5-37-3&4 PCH Gravity Swr Rehab 5 & 6 Bitterpoint P/S Fan Upgrade 5-39 Siphon 5 & 6 Sub-Total Share of Joint Works Sub-Total COMPLETED PROPERTY, PLANT & EQUIP: Land and Property Rights Collection Lines and Pump Stns. Treatment Facilities Disposal Facilities General Plant and Admin. Facil. Equity in Joint Treatment Facil. Other Assets at Cost Less Amert. Sub-Total Total Property, Plant & Equipment & CIP Balance 7/1/95 (32,767) 1,079,358 248,599 29,599 19,155 700 8,891 36,589 1,390,124 2,623,625 4,013,749 562 4,179,148 2,653 7,394 94,197 32,001,104 9,011 36,294,069 40,307,818 Section 4 -Page 6 Adjustments &Additions 4,036 67,045 79,195 15,130 1 1,468,475 960 1 1,634,843 611,306 2,246,149 (130,509) 397 (281,720) (9,011) (420,843) 1,825,306 Remaining Budget 513,070 4,437 1,210,453 10,251 (168,325) 1,569,886 984,694 100,157 522,490 911,704 27,009 2,546,054 Transfer to Fixed Assets (1,066,461) (19,155) (701) (36,589) (1,122,906) (130,040) (1,252,946) 1,103,751 19,155 130,040 1,252,946 Year-To-Date %Expended 0.00% 58.12% 0.00% 90.56% 64.40% 66.93% 122.53% 0.00% 71 .19% 38.30% 94.23% 64.41% 64.92% 89.24% 66.71% Balance 3/31/96 (28,731) 79,942 327,794 44,729 1,477,366 960 1 1,902,061 3,104,891 5,006,952 562 5,152,390 2,653 7,394 113,749 31,849,424 37,126,172 42,133,124 1 I Budget Review by District District No. 7 -Operating and Capital Facilities Budget Review For The Nine Months Ended 3/31/96 Operating Budget Review REVENUES: Tax Levy (Bond Fund(s) Only) Tax Allocations/Subventions (Share of 1%) Federal and State Construction Grants Connection Fees Other Fees Sale of Capacity Rights Interest & Misc. Receipts Other Total Revenues OUTLAYS: Share of Joint Works Trmt. Plant District Trunk Sewer Construction COP/Bond Retirement and Interest Expense Share of Joint Works Operating Expenses District Operating & Other Expenditures Total Outlays 1995 -96 Budget 3,230,000 235,000 5,960,000 53,000 1,526,000 11,004,000 2,780,000 2,400,000 2,401 ,000 4,655,000 1,959.000 14,195,000 Year-To- Date 1,843,444 810,505 5,142,940 54,458 1,640,304 9,491,651 1,234,455 2,571,012 1,671,043 3,018,425 1,142,852 9,637,787 Capital Facilities Budget Review CONSTRUCTION IN PROGRESS: 7-22 Parallel & Repl. Lemon Heights 7-23-1 College Ave. Pump Stn Repl Force Mains 7-24 Manhole Access J-28 PIS Telemetry Mac Arthur PIS Ventilation 7-7-1 Main St. PIS lmprov. 7-18 Orange Park Acres Sewer Study 7-19 Cowan Heights Sewer 14-1-1 A & B Gisler Int., 14-1-2 Baker Street Force Main Districts 6, 7 & 14 Swr Mice Easement Index Books 7-14 Abandon 9 P/S, 7-14-1&2 7-6-1-1 Sunflower Interceptor 7-16 Lemon Heights Sewer 7-1-1 Gisler/Redhill Trunk Abandonment Techite Pipe Replacement 7-17 Orange Park Acres Sewer Repl. 7-1-2 Gisler-Redhill 7-18-1 MacArthurTrunk Main Street Flume Flowmeter Miscellaneous Charges to Closed W.O. Sub-Total Share of Joint Works Sub-Total COMPLETED PROPERTY, PLANT & EQUIP: Land and Property Rights Collection Lines and Pump Stns. Treatment Facilities Disposal Facilities General Plant and Admin. Facil. Equity in Joint Treatment Facil. Other Assets at Cost Less Amort. Sub-Total Total Property, Plant & Equipment & CIP Balance 7/1/95 173,397 16,991 664 5,706 54,852 124,537 55,335 2,315,534 13,238 239,168 57,172 9,716 2,663 35,160 1,212 3,105,345 4,552,553 7,657,898 1,549,310 36,089,277 10,782 92,099 57,219,422 3,324 94,964,214 102,622,112 Section 4 -Page 7 Adjustments &Additions 1,654,796 2,559 14,457 1,057 96,223 152,374 615,759 139 400 676 199 22,057 51 24 10,241 2,571,012 1,234,455 3,805,467 4 (503,973) (52,588) (556,557) 3,248,910 Remaining Budget 1,386,556 (575,505) 817,060 (1,458) (114,304) 1,512,349 1,545,545 (171 ,012) 729,957 1,636,575 816.148 4,557,213 Transfer to Fixed Assets (5,706) (124,537) (55,335) (2,423,775) (13,238) (235) (2,622,826) (232,630) (2,855,456) 2,424,011 5,706 232,630 193,109 2,855,456 Year-to-Date %Expended 0.00% 57.07% 0.00% 344.90% 86.29% 102.75% 107.49% 0.00% 86.26% 44.40% 107.13% 69.60% 64.84% 58.34% 67.90% Balance 3/31/96 1,828,193 19,550 15,121 1,057 151,075 44,133 854,927 139 57,572 10,392 2,663 35,359 22,057 51 24 11,218 3,053,531 5,554,378 8,607,909 1,549,310 38,513,292 10,782 97,805 56,948,079 143,845 97,263,113 105,871,022 1995-96 3rd Quarter Report District No. 11 -Operating and Capital Facilities Budget Review For The Nine Months Ended 3/31/96 Operating Budget Beview 1995 -96 Year-To-Remaining Budget Date Budget REVENUES: Tax Levy (Bond Fund(s) Only) 17,000 10,196 6,804 Tax Allocations/Subventions (Share of 1 % ) 2,041,000 1,249,776 791,224 Federal and State Construction Grants Connection Fees 118,000 373,085 (255,085) Other Fees 3,220,000 2,082,760 1,137,240 Sale of Capacity Rights 40,000 37,247 2,753 Interest & Misc. Receipts 931,000 1,202,570 (271,570) Other Total Revenues 6,367,000 4,955,634 1,411,366 OUTLAYS: Share of Joint Works Trmt. Plant 2,099,000 887,620 1,211,380 District Trunk Sewer Construction 1,635,000 1,350,804 284,196 COP/Bond Retirement and Interest Expense 2,176,000 1,382,935 793,065 Share of Joint Works Operating Expenses 3,486,000 2,273,712 1,212,288 District Operating & Other Expenditures 737,000 455,051 281,949 Total Outlays 10,133,000 6,350,122 3,782,878 Capital Facilities Budget Review Balance Adjustments Transfer to 7/1/95 & Additions Fixed Assets CONSTRUCTION IN PROGRESS: Slater PIS Motor & Pump 47 11-17 Slater P/S Sewage Sys lmprov. 4,414,216 1,347,222 Miscellaneous Charge to Closed W.O. 954 3,582 Sub-Total 4,415,217 1,350,804 Share of Joint Works 3,471,604 887,620 (175,235) Sub-Total 7,886,821 2,238,424 (175,235) COMPLETED PROPERTY, PLANT & EQUIP: Land and Property Rights 146,986 Collection Lines and Pump Stns. 19,048,602 Treatment Facilities Disposal Facilities 3,053 General Plant and Admin. Facil. 30,682 Equity in Joint Treatment Facil. 43,058,620 (379,632) 175,235 Other Assets at Cost Less Amort. Sub-Total 62,287,943 (379,632) 175,235 Total Property, Plant & Equipment & CIP 70,174,764 1,858,792 Section 4 -Page 8 Year-to-Date %Expended 59.98% 61.23% 0.00% 316.17% 64.68% 93.12% 129.17% 0.00% 77.83% 42.29% 82.62% 63.55% 65.22% 61.74% 62.67% Balance 3/31/96 47 5,761,438 4,536 5,766,021 4,183,989 9,950,010 146,986 19,048,602 3,053 30,682 42,854,223 62,083,546 72,033,556 Budget Review by District District No. 13 -Operating and Capital Facilities Budget Review For The Nine Months Ended 3/31/96 Operating Budget Review 1995 -96 Year-To-Remaining Year-To-Date Budget Date Budget %Expended REVENUES: Tax Levy (Bond Fund(s) Only) 0.00% Tax Allocations/Subventions (Share of 1 % ) 0.00% Federal and State Construction Grants 0.00% Connection Fees 470,000 276,930 193,070 58.92% Other Fees 818,000 481,656 336,344 58.88% Sale of Capacity Rights 6,000 5,487 513 91.45% Interest & Misc. Receipts 382,000 435,345 (53,345) 113.96% Other 0.00% Total Revenues 1,676,000 1,199,418 476,582 71.56% OUTLAYS: Share of Joint Works Trmt. Plant 322,000 146,052 175,948 45.36% District Trunk Sewer Construction 472,000 472,000 0.00% I COP/Bond Retirement and Interest Expense 27,000 15,480 11,520 57.33% Share of Joint Works Operating Expenses 576,000 345,374 230,626 59.96% District Operating & Other Expenditures 64,000 26,985 37,015 42.16% Total Outlays 1,461 ,000 533,891 927,109 36.54% Capital Facilities Budget Review Balance Adjustments Transfer to Balance 7/1/95 &Additions Fixed Assets 3/31/96 CONSTRUCTION IN PROGRESS: Share of Joint Works 516,108 146,052 (26,618) 635,542 Sub-Total 516,108 146,052 (26,618) 635,542 COMPLETED PROPERTY, PLANT & EQUIP: Land and Property Rights -. Collection Lines and Pump Stns. 2,616,757 2,616,757 Treatment Facilities l Disposal Facilities General Plant and Admin. Facil. Equity in Joint Treatment Facil. 6,402,440 (57,666) 26,618 6,371,392 Other Assets at Cost Less Amort. Sub-Total 9,019,197 (57,666) 26,618 8,988,149 Total Property, Plant & Equipment & CIP 9,535,305 88,386 9,623,691 Section 4 -Page 9 1995-96 3rd Quarter Report District No. 14 -Operating and Capital Facilities Budget Review For The Nine Months Ended 3/31/96 Operating Budget Review REVENUES: Tax Levy (Bond Fund(s) Only) Tax Allocations/Subventions (Share of 1%) Federal and State Construction Grants IRWD Fees Other Fees Sale of Capacity Rights Interest & Misc. Receipts Other Total Revenues OUTLAYS: Share of Joint Works Trmt. Plant District Trunk Sewer Construction COP/Bond Retirement and Interest Expense Share of Joint Works Operating Expenses District Operating & Other Expenditures Total Outlays 1995 -96 Budget 9,100,000 41,000 268,000 9,409,000 2,116,000 615,000 158,000 1,463,000 511,000 4,863,000 Year-To- Date 3,281,091 4,714 31,080 139,611 3,456,496 900,343 406,548 91,054 2,270,115 175,496 3,843,556 Remaining Budget 5,818,909 (4,714) 9,920 128,389 5,952,504 1,215,657 208,452 66,946 (807,115) 335,504 1,019,444 Capital Facilities Budget Review CONSTRUCTION IN PROGRESS: Main Street Flume Flowmeter 14-1-1 A & B Gisler Int., 14-1-2 Baker St. Force Main, Districts 6, 7 & 14 Main St. Pump Station Improvements 7-7-1 Bay Bridge P/S Lighting 5 & 6 Bay Bridge P/S Platform Hydrogen Peroxide Trials Sub-Total Share of Joint Works Sub-Total COMPLETED PROPERTY, PLANT & EQUIP: Land and Property Rights Collection Lines and Pump Stns. Treatment Facilities Disposal Facilities General Plant and Admin. Facil. Equity in Joint Treatment Facil. Other Assets at Cost Less Amort. Sub-Total Total Property, Plant & Equipment & CIP Balance 7/1/95 5,827,644 94,911 258 38 5,922,851 3,451,983 9,374,834 19,382,254 6,747 42,161,369 61,550,370 70,925,204 Adjustments Transfer to & Additions Fixed Assets 40 405,807 363 202 103 33 406,548 900,343 1,306,891 (12,878) (379,031) (391,909) 914,982 (6,212,287) (436) (6,212,723) (174,958) (6,387,681) 6,212,723 174,958 6,387,681 Section 4 -Page 10 Year-to-Date % Expended 0.00% 0.00% 0.00% 36.06% 0.00% 75.80% 52.09% 0.00% 36.74% 42.55% 66.11% 57.63% 155.17% 34.34% 79.04% Balance 3/31/96 40 21,164 95,274 24 103 71 116,676 4,177,368 4,294,044 25,582,099 6,747 41,957,296 67,546,142 71,840,186 l l l I J Self-Ins. Review Medical Fund Budget Review For The Nine Months Ended 3/31/96 1995-96 Budget Beginning Cash Balance 15,000 Revenues: In-Lieu Prem. -CSDOC 400,000 -Employees 75,000 Reimburse from Stop Loss Ins Supplemental CSDOC Funding Interest & Other Total Revenues 475,000 Expenditures: Claims -Medical* -Dental 387,000 Transfer Out Contractural Services 50,000 Total Expenditures 437,000 ExcessRevenue(Expense) 38,000 Ending Cash Balance 53,000 *Medical insurance has been purchased rather than self-funded since February 1994. Percent Actual of Budget Remaining Through Through 1995-96 3/31/96 3/31/96 Budget 261,848 65.46% 138,152 33,491 44.65% 41,509 1,744 (1,744) 297,083 62.54% 177,917 0.00% 230,383 59.53% 156,617 33,719 67.44% 16,281 264,102 60.44% 172,898 32,981 86.79% 5,019 32,981 62.23% 5,019 Section 5 -Page 1 Actual Through Increase 3/31/95 (Decrease) 85,952 (85,952) 260,861 987 28,665 4,826 (11,127) 11,127 633 1,111 279,032 18,051 6,279 (6,279) 214,079 16,304 113,162 (113,162) 31,395 2,324 364,915 (100,813) (85,883) 118,864 69 32,912 1995-96 3rd Quarter Report Public Liability Fund Budget Review For The Nine Months Ended 3/31/96 Percent Actual of Budget Remaining Actual 1995-96 Through Through 1995-96 Through Increase Budget 3/31/96 3/31/96 Budget 3/31/95 (Decrease) Beginning Cash Balance* 3,356,000 3,315,495 3,392,913 (77,418) Revenues: In-Lieu Premiums 100,000 0.00% 100,000 Interest & Other 200,000 127,565 63.78% 72,435 92,007 35,558 Allocation to Other Funds 54,679 0.00% (54,679) 67,820 (13,141) Total Revenues 300,000 182,244 60.75% 117,756 159,827 22,417 Expenditures: Salaries 1,000 3,542 354.20% (2,542) 3,542 Claims 90,000 82,877 92.09% 7,123 1,764 81,113 Contractual Services 20,000 956 4.78% 19,044 2,837 (1,881) Legal Services 150,000 151,029 100.69% (1,029) 140,044 10,985 Professional Services 10,000 462 4.62% 9,538 2,863 (2,401) Supplies & Other 1,000 136 13.60% 864 136 Total Expenditures 272,000 239,002 87.87% 32,998 147,508 91,494 Excess Revenue (Expense) 28,000 (56,758) (202.71%) 84,758 12,319 (69,077) Ending Cash Balance 3,384,000 3,258,737 96.30% 125,263 3,405,232 (146,495) Includes $720,208 long-term receivable due from the County of Orange. Section 5 -Page 2 7 I 7 Self-Ins. Review I l Worker's Compensation Fund Budget Review For The Nine Months Ended 3/31/96 -1 Percent Actual of Budget Remaining Actual 1995-96 Through Through 1995-96 Through Increase l Budget 3/31/96 3/31/96 Budget 3/31/95 (Decrease) Beginning Cash Balance* 795,000 648,241 748,810 (100,569) l Revenues: l In-Lieu Premiums 225,000 164,423 73.08% 60,577 173,077 (8,654) l Interest & Other 43,000 28,508 66.30% 14,492 16,614 11,894 Total Revenues 268,000 192,931 71.99% 75,069 189,691 3,240 Expenditures: Salaries 10,000 0.00% 10,000 Claims 165,000 111,648 67.67% 53,352 96,150 15,498 Contractual Services 35,000 18,750 53.57% 16,250 18,898 (148) Legal Services 5,000 0.00% 5,000 Professional Services 35,000 9,959 28.45% 25,041 16,664 (6,705) Supplies & Other 12,000 0.00% 12,000 ) j Sub Total 262,000 140,357 53.57% 121,643 131,712 8,645 1 Excess Loss Policy 45,000 16,245 36.10% 28,755 25,568 (9,323) _J Total Expenditures 307,000 156,602 51.01% 150,398 157,280 (678) ExcessRevenue(Expense) (39,000) 36,329 (93.15%) (75,329) 32,411 3,918 J Ending Cash Balance 756,000 684,570 90.55% 71,430 781,221 (96,651) J * Includes $151,754 long-term receivable due from the County of Orange J I J l J ' Section 5 -Page 3 J This page was intentionally left blank Section 5 -Page 4 "7 I 1 7 7 1 . ' I -J J __ , J Activity Trends Joint Operating expenses through the third quarter are at 67 percent and 72 percent of budget and target expenses, respectively. Budget savings have been realized on chemicals, as new contract prices have declined, on the ocean monitoring contract with Science Applications International Corporation, as the monitoring work is carried forward into 1996-97, and in repair materials, because of the decrease in major breakdowns in plant and equipment. Overall, salaries are only at 69 percent as a result of savings from the early retirement program and an average vacancy rate of approximately 9 percent in authorized positions. Salary expenses will continue to increase as a result of 19 new employees that have been hired through the third quarter of 1995-96. a 95-96 Budget •95-96 Target •9 Months ended 03/31/96 700 600 500 400 300 200 100 0 +---,...._ __ Treatment Cost, $ per MG Section 6 -Page 1 236.85 236.85 236.64 Average Daily Flow, MGD 1995-96 3rd Qtr Report Board Secretary: The initial preparation times submitted for Joint Board agenda packages and minutes as reflected in the 95-96 Budget were estimates made without baseline data. Beginning in July, 1995, the Board Secretary's Office has tracked actual time spent on these tasks. The first six months reflects actual hours spent on the Joint Board agenda package and minutes. The differentiation between estimates and actuals was unanticipated; however a comparison between first quarter data and six month data indicate the listed time is more accurate than original estimates. These data will be used for future baseline projections. 40.0 35.0 · 30.0 25.0 D 95-96 Budget 20.0 •3rd Qtr. Actual 15.0 10.0 5.0 0.0 Communications: 38.3 20.0 Agenda Prep. Time, Hrs. 17.4 4.0 Completion of Minutes, Hrs. The number of tours during the first nine months is on target with annual estimates. Third quarter contacts averaged approximately 500, placing us ahead of the annual projection. The number of informational materials provided is also on target. The division remains on target for the number of newsletters published over the course of the last three quarters . .:>OV 300 250 200 D 95-96 Budget • 3rd Qtr. Actual 150 100 100 50 0 No. of Tours & Presentations 90 86 No. of People Contacted X 100 320 240 Informational Materials Provided X 100 Section 6 -Page 2 25 20 No. of Employee Newsletters Published ] j 1 Activity Trends Finance Administration: The required coverage ratio for senior lien debt, the ratio of certain revenues to the debt service costs, is 1.25. Because one half of property taxes and user fees are received in December and April, while principal payments are made in August and February, the ratio will increase during the remainder of the year. Investment interest earnings are running ahead of the budgeted yield as PIMCO manages our portfolio. Variable interest rates required to remarket the COP issues have been favorable as the "Orange County" penalty has declined and investors are more comfortable with our credit and we have changed remarketing agents. Approximately half of our outstanding COPs are "synthetic-fixed" rate obligations. The number of COP issues outstanding is not expected to change this year as no new debt was budgeted. 7.00 6.00 5.00 4.00 O 95-96 Budget • 3rd Qtr. Actual 3.00 2.28 2.00 1.00 0.00 Sr. Debt Svc. Coverage Ratio Accounting: 8.05% 6.00% Yield% on Invested Reserves 4.75 4.50 Avg. COP Interest Rate % 6 6 Outstanding COP Issues Accounts Payable warrants and payroll warrants per FTE are slightly behind annual projections but are within expected estimates as they are running at 73 percent of annual totals. Both Industrial user bills and journal entries processed per FTE are slightly higher than annual projections at 83 percent and 82 percent, respectively. 5,900 6,000 5,000 4,331 4,100 4,000 3,750 3,000 O 95-96 Budget • 3rd Qtr. Actual 2,000 952 782 1,000 0 Accounts Payable Payroll Warrants Industrial User Bills Journal Entries Warrants Issued Processed Processed Per FTE Processed PerFTE PerFTE PerFTE Section 6 -Page 3 1995-96 3rd Qtr Report Purchasing & Warehousing: Purchase orders issued per Full-time Equivalent (FTE) are below an expected 9-month trend yet were higher than expected in the third quarter. As the fiscal year approaches an end, purchases are made; however, due to fiscal conservatism over the last nine months due to the Districts-wide commitments to reduce the Joint Operating Expense budget by 10%, we remain well below initial projections. The number of bids per FTE continues to exceed initial estimates as contracting for services becomes more frequent. The trend toward out-sourcing services will increase formal and informal bids accordingly. Warehouse issues per FTE are somewhat higher than the initial estimates based upon the consolidation of equipment and supplies to the appropriate Warehouse. This procedure designates this inter-movement of equipment and supplies as an individual warehouse issuance, therefore increasing reported activity above "actual" issuance. 25.000 23 20.000 18.670 15 15.000 a 95-96 Budget 11 .429 • 3rd Ctr. Actual 10.000 5.000 0.000 P. O.'s Issued Per Written Bids Warehouse FTEX 10 PerFTE Issues Per FTE X 100 Section 6 -Page 4 7 1 I J J Activity Trends Information Technology Administration: Computer Users Supported per Full-Time Equivalent (FTE) is based on the number of staff members in Information Technology Department (ITD) tasked with providing direct support. The current 43 FTE Users/staff improvement is the result of a realignment of the existing staff so that more personnel are assigned to general support to computer users, rather than be assigned exclusively to special projects. Hardware Work Orders per FTE represent the number of Work Orders completed divided by the number of ITD staff assigned to such requests. The original benchmark of 17 was based solely on estimates as opposed to actual data and is obviously inaccurate when compared against the 66/FTE year-to-date. Programmable Logic Controllers are somewhat behind the annual estimate but expected to be achieved by fiscal year end. Similarly, Data Points installed are running behind schedule due to PLC implementation delays. D 95-96 Budget • 3rd Qtr. Actual Hardware Support: 200 176 152 128 104 80 56 32 8 -16 43 Computer Users Supported per FTE 66 Hardware Work Orders per FTE 120 57 30 19 Plant Automation Programmable Logic Additional Data Controllers Installed Points Installed (x100) The phone directory numbers maintained per FTE indicates the number of PBX or telephone lines serviced. Unexpected expansion in this system has resulted in more numbers maintained than those reflected in the Activity Trend estimates for FY 1995-96. Similarly, due to the increasing use of technology, we have more personal computers than initially estimated. This case is also reflected in the Card Readers graphic. Hardware work orders per FTE also reflect an unanticipated increase. Because of the additions of the aforementioned devices, work orders to install and maintain them have also increased beyond initial estimates. 120.0 100.0 80.0 D 95-96 Budget 60.0 • 3rd Qtr. Actual 40.0 20.0 0.0 13.0 17.0 Directory Numbers Maintained/FT!: X 10 105 Personal Computer Maintained/FT!: 50 49 Hardware Work Orders/FT!: Section 6 -Page 5 Card Readers Maintained/FT!: 1995-96 3rd Qtr Report Software & Plant Automation: Software work orders per FTE is well above FY 1995-96 Activity Trend estimates due to no initial benchmark data to derive initial estimates. This process as been networked and automated via a Maintenance Management System (MMS) that allows other divisions to direct work orders to IT electronically. The ease of directing work orders to IT, the additional internal controls requiring staff to be more stringent in documenting requests for service (e.g. quick service call), and the expanding user base account for the increase. The number of network users supported per FTE results from additional computer purchases and implementation. The vast majority of desktop computers are networked to one of several servers and thus require on-going network troubleshooting, maintenance, repair and upgrade. 100 94 90 80 • 70 -62 60 D 95-96 Budget 50 38 • 3rd Qtr. Actual 40 30 20 7 10 0 Software Work Network Orders/FTE Users Supported/FTE Section 6 -Page 6 l 7 ~l 1 l j J , 1 _j __J J Activity Trends Human Resources Administration: After further research, the Activity Trends in the FY 1995-96 Budget required refinement to more accurately portray the perfonnance of the Human Resources Department. Human Resources surpassed its goal of 83 employees supported by each HR employee with the elimination of two positions. Human Resources training as a percentage of operating expense continues to reflect National benchmarks. 12.0 10.0 8.0 • 95-96 Budget 6.0 • 3rd Qtr. Actual 4.0 2.0 0.0 Human Resources & Training: 10.3 8.3 Employees Supported Per Human Resource Employee X 10 2.6% 2.3% HR/Training as a % of Operating Expense The Districts recruitment time or "time to fill" numbers for new positions continues to exceed the National average by two to four times. Although significant progress hs been made during the 2nd and 3rd quarter periods, a poor first quarter continues to affect year-to-date averages. Current recruitments for exempt and non-exempt employees are averaging 110 days and 81 days respectively. Turnover compares extremely favorably to the benchmark for utility agencies and falls below the expected turnover ratio of 10% nationally for private organizations. Exempt employee costs are significantly lower as in-house staff are primarily used instead of executive search firms. Non- exempt employee costs have increased slightly above benchmarks, but overall recruitment costs are significantly below national averages. 160 143 140 120 97 100 $85.0 80 D 95-96 Budget • 3rd Qtr. Actual 60 · 40 $17.92 $18.7 20 7.8% 4.4% 0 No. of Recruitment No. of Recruitment Employee Cost Per Exempt Cost per Non-Exempt Days For Exempt Days For Non-Turnover Employee Hired Employee Hired Employees Exempt Employees X 100 X 100 Section 6 -Page 7 1995-96 3rd Qtr Report Safety & Emergency Response: During the first nine months, workers' compensation claims were below the annual trend projection. It is expected we will be at least 10% below estimated targets. Additionally, the Total Injury Rate was 6.7 as opposed to last year's 8.9-a 25% decrease. The Districts' accident experience is even more significant when compared to the 16.3 industry average for Total Injury Rate, and is notably lower than the two previous years. We believe this can be attributed to the successful implementation of new safety programs and improvement in existing programs during the last several quarters. The lost work day rating is a reflection of these programs. Job Hazard Analyses and Regulatory Compliance Audits are generally on target. 45 45 • 95-96 Budget 40 • 3rd Qtr. Actual 35 29 30 30 25 20 20 15 12.3 10 8.7 6 5 2.5 1.7 0 No. of Job Site Regulatory Total Injury Job Hazard Workers' Safety Lost Work Rate Analysis Comp. Claims Compliance Compliance Day Rate X 10 Audits Audits Section 6 -Page 8 l J Activity Trends Maintenance Administration: As stipulated in the following maintenance sections, one of the primary focuses of the Maintenance Department in Fiscal Year 1995-96 is to develop a solid database for our Computerized Maintenance Management System (CMMS}, thereby devoting more time to a total Planned Maintenance philosophy. The trends we develop this fiscal year will be utilized to project future expectations. The graph portrays the impact of CMMS implementation and resource allocation on the Maintenance Department, as well as the temporary freezing of authorized positions (both discussed in further detail in the respective maintenance divisions). Although a 2:1 ratio of preventive maintenance (pm) tasks versus corrective maintenance (cm) tasks due to the aforementioned is unlikely, a 50%/50% ratio is achievable. This ratio is acceptable and considered progressive based on many maintenance industry benchmarks/standards. 60.0 50.0 40.0 30.0 20.0 10.0 0.0 +-_.__ Preventive Maintenance Tasks Completed X 1000 Maintenance Scheduling: Corrective Maint. Tasks Completed X 1000 • 95-96 Budget • 3rd Qtr. Actual Preventive Maintenance Backlog X 100 Corrective Maintenance Backlog X 100 Corrective Maintenance Suspended X 10 52.0 49.2 Equipment Records Entered into Computer X 1000 The Planning & Scheduling Division is a new unit this fiscal year, and as such, did not have reliable baseline data to develop accurate Activity Trend benchmarks. The goals stipulated in the FY 1995-96 budget are OQIY reasonable estimates of new job duties to establish future parameters. Disciplines have been reluctant to remove "unneeded" stock because they believed the item costs would be deducted from their budgets. However, we have recommended a reduction in obsolescent inventory by $225,000 for the first nine months of the year. As a result of benchmarking preventive maintenance on major facility accouterments, our scheduled PM program for Primary/Secondary basins and digesters meets or exceeds our initial estimates. The disciplines are implementing such PM programs beginning last month. 30.0 25.0 25.0 20.0 15.0 • 95-96 Budget • 3rd Qtr. Actual 10.0 5.0 0.0 Reduce Obsolete Inventory,$ X 10,000 29 Primary Basins Section 6 -Page 9 Digester Cleaning 11 Secondary Basins 1995-96 3rd Qtr Report Plant Maintenance: The Division continues its commitment in developing the CMMS database and the focus towards Planned Maintenance. Development support is provided by 2.0 FTEs at the craft level. Continued growth in the equipment records and P.M. instructions records have created higher backlogs along with the lack of additional ''wrench support" normally provided by the FTEs. Also, time spent by staff on facility improvements affects maintenance backlogs. Development of the area assignment system is behind schedule due to indirect activities. The performance measures are expected to be on target and completed by the end of the fourth quarter. 600.0 500.0 400.0 300.0 200.0 100.0 250.0 320.0 42.2 0.0 +--'-------+-'--- Preventive MalntenanceMC~r;ectlve Tasks Completed aiTn enkance X 10 as s Completed x 1 O Collection Facilities Maintenance: a 95-96 Budget • 3rd Qtr. Actual 300 63 Preventive Maintenance Backlog 500 Corrective Maintenance Backlog 550.0 Pieces of Equipment in Computer Database X 1 O Computerized Preventive Maintenance Instructions This Division continues with its development of the CMMS database and Planned Maintenance. Development is assisted by 1.5 FTEs from this division with support provided by 1.0 FTE from the Planning Division. Incorporation of new P.M. activities and the focus on root control program in District 7 account for higher backlogs. Total sewer overflows to date are less than expected with credit going to the staff's continued commitment to improve maintenance methods and attention to known trouble areas. Use of contract services for some of the line cleaning in District 7 is behind schedule. This delay is due to the vacancy in the Maintenance Staff Engineer position who was developing bid documents. The Maintenance Manager will work with staff to help finalize this task in the fourth quarter. 100.0 90.0 80.0 - 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 20.00 Manhole Inspections X100 Preventive Main! completed X 100 Corrective Main! Completed X10 a 95-96 Budget • 3rd Qtr. Actual 50 Preventive Main! Backlog Corrective Main! Backlog Section 6 -Page 10 Pieces of Equip Computerized X 1,000 Preventive Main! Instruction Spills Reported 7 j 1 1 l l 1 j _j Activity Trends Mechanical Maintenance A major goal of the Division for FY 1995-96 is the emphasis on the development of the Computerized Maintenance Management System (CMMS) database and its requisite inventory items. Approximately 83% of the annual target for "Pieces of Equipment-Computerized" has been maintained through the first nine months. The Division is in the process of completing cross training of all field level staff and is 75% complete. Preventive maintenance tasks completed are within targeted parameters and we have considerably improved. our The corrective maintenance backlog when compared against estimated annual Activity Trend projections have experienced an increase due to CMMS reporting. The Division has maintained a 12% vacancy rate in order to meet the 10% reduction in the Joint Operating Expense budget. 80.0 70.0 60.0 50.0 40.0 35.0 30.3 30.0 20.0 10.0 0.0 Preventive Maintenance Tasks Completed X 100 D 95-96 Budget • 3rd Qtr. Actual 38.6 Corrective Maintenance Tasks Completed X 100 Electrical Maintenance: 25.0 22.3 Preventive Maintenance Backlog X 10 17.5 20.7 Corrective Maintenance Backlog X 10 75.0 Pieces of Equipment in Computer Database X 100 15 17.1 Computerized Preventive Maintenance Instructions X 100 A major goal of the Division for FY 1995-96 is the emphasis on the continued development of the Computerized Maintenance Management System (CMMS) database and its requisite inventory items. Approximately 97% of the annual target for "Pieces of Equipment-Computerized" has been achieved thus far. The expansion of this database has resulted in an increase in the quantity of maintenance items coming due for PM. Although preventive maintenance backlog has remained relatively constant, the PM tasks completed category has risen sharply during the quarter due to the shift in resources from database development to PM tasks. Furthermore, efforts to complete the inventory database required a shift in resources resulting in lower production in the Preventive Tasks Completed category. Corrective tasks completed are well within targeted parameters for the year and we are within the estimated annual Activity Trend projections for corrective maintenance backlog. The Division continues to maintain a 10% vacancy rate in staffing levels that will not be filled this fiscal year. 120 100 80 60 40 20 0 65 Preventative Maintenance Tasks Completed X 100 D 95-96 Budget • 3rd Qtr. Actual 112.7 20.0 18.1 Corrective Preventative Maintenance Maintenance Tasks Completed Backlog X 100 X 10 75 Corrective Maintenance Backlog Section 6 -Page 11 80 77.3 32.5 35.2 Pieces of Equip. Maintenance Computerized Instructions X100 Computerized X 100 1995-96 3rd Qtr Report Instrumentation Maintenance: A major goal of the Division for FY 1995-96 is the emphasis on the continued development of the Computerized Maintenance Management System (CMMS) database and its requisite inventory items. Approximately 109% of the annual target for "Pieces of Equipment-Computerized" has been achieved the third quarter. Because of the development of new facilities, our inventory has increased and thus exceeded initial Activity Trend estimates in this category. During the third quarter, manpower resources have been shifted from database development to preventive and corrective backlogs. This shift has resulted in a reduction of backlog in both categories and a significant increase in PM tasks completed. The corrective maintenance tasks completed category is on target with Activity Trend projections. The Division h.as maintained a 10% vacancy rate which will not be filled this fiscal year. 120.0 O 95-96 Budget 103.5 • 3rd Qtr. Actual 97.0 100.0 77.3 80.0 60.0 60.0 37.5 34.3 40.0 20.0 12.0 11.8 0.0 Preventive Corrective Preventive Pieces of Computerized Corrective Maintenance Tasks Maintenance Maintenance Maintenance Equipment Preventive Completed Tasks Backlog Backlog in Computer Maintenance X 100 Completed X 1 oo X10 Database X 100 Instructions X 1 oo Section 6 -Page 12 l l Activity Trends Plant Operations: Activity trends for the first nine months of FY 1995-96 (ending March 31) are generally tracking as expected when compared against 1995-96 annual estimates. Actual expenditures for chemicals are below annual trends as are plant operations cost (per MGD) . Lower per unit costs for caustic soda and hydrogen peroxide were achieved by price negotiations with vendors. Actual plant operation division cost of $240 per million gallons is approximately 10% below the annual estimate of $265 per million gallons. Budget savings have been realized through the aforementioned unit costs on chemicals and staff vacancies which resulted in labor savings. 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 -~-- Influent Flow in Tens of Millions of Gallons Per Day Biosolids Production in Pounds per Million Gallons X 100 84.0 Energy Usage in kW x 100 Plant One Plant Two Section 6 -Page 13 D 95-96 Budget • 3rd Qtr. Actual $54.3 $29.7 Chemical Costs X 100,000 Plant Operation Division Cost Per Million Gallons X 10 1995-96 3rd Qtr Report Environmental Management: The Ocean Monitoring Baseline Program is a fixed-price contract worth $1.49 million that extends into FY 1996-97 and will not be fully expended until that time. Charges invoiced during the first nine months total ~$571,000. The target number of field samples collected during the year for the baseline Ocean Monitoring Program (OMP) is 1284 samples of which 1210 (93%) were collected during the first nine months of the fiscal year. Typically, the bulk of collection is accomplished in mid-summer, or during the 1st quarter of the fiscal year. The inability to collect 100% of the target number of samples was due to the loss of three field samples and the lack of target aquatic species for appropriate testing. Each year the Districts contribute funds to the Southern California Coastal Water Research Project (SCCWRP) under a joint-powers agreement. Approximately 50% has been expended. One of the special studies conducted by Environmental Management is the characterization of water quality within our study area utilizing a fixed grid of 32 stations. Water quality samples taken are on target. 400.0 350.0 300.0 250.0 200.0 $148.6 150.0 100.0 - 50.0 • 95-96 Budget • 3rd Qtr. Actual 128.4 121.0 $57.1 .0 +-~-- Ocean Monitoring Baseline Program X 10,000 Ocean Monitoring Samples X 10 $310.0 SCCWRP Joint Powers Agreement Contribution X 1,000 $245.0 $85.1 Ocean Monitoring Special Studies Cost X 1,000 Section 6 -Page 14 384 263 Water Quality Samples Taken l l l l l l J Activity Trends Environmental Sciences Laboratory: The Activity Trends noted in the FY 1995-96 Budget do not adequately quantify the duties and responsibilities of the Environmental Sciences Laboratory (ESL). As a result, we are modifying our reporting to better reflect lab operations. The information below depicts the actual number of analyses (through February) to be completed divided by the estimated number of analyses. Results greater than 100% indicate the lab has performed more analyses than initial estimates while numbers below 100% indicate performance less than estimates. Overall, sample load is tracking within 5% of projected, but significant reductions are seen in both source control and marine monitoring. These may be due to the baseline data benchmarks taken from the time period July 1995 - October 1995. Special project samples are 10. 7% greater than projected due primarily to increases in process improvement projects in plant operations. 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% lnf/Eff NPDES Source Control: Source Control Process Control Biosolids Marine Mon~oring 110.7% Special Projects Air Surfzone The new and renewed permit issuance activity is 51 % of the budgeted item due to permit renewals which are lower during the first half of every fiscal year. The routine sampling and inspection of facilities are 69% of the benchmark and are well within the expected trend. The downstream surveillance and Strike Force activities are at 93% of the annual estimate due to the increased need for further investigation of illegal dischargers. Enforcement actions are 67% of the activity trend benchmark. Remaining activity trends portrayed are within the expected range of variability. 300.0 • 95-96 Budget 266.8 250.0 • 3rd Qtr. Actual 192.0 200.0 163.6 69.1 150.0 100.0 50.0 0.0 New and Routine Sampling and Downstream Enforcement Pretreatment Permittee, Regulation Renewed Inspection of Surveillances, Actions & Program Enforcement of Small Permits Permitted and Non-Strike Force Administrative Reports & General Quantity Issued permitted Dischargers X 10 Orders Correspondence Dischargers X 10 X10 Section 6 -Page 15 1995~96 3rd Qtr Report Engineering Administration: The original Capital Outlay Revolving Fund (CORF) forecast was $33.5 million of which $27.4 million was the direct responsibility of the Engineering Department. This $27.4 million budget has now been revised to $19 million through June 30, 1996 due to several factors. The primary factor is that several projects had been delayed including the primary rehabilitation projects and the Plant 2 Maintenance Building. The Plant 2 Warehouse has been canceled, and budgets for some projects have been revised downward to more accurately reflect estimates of construction costs. Through the third quarter, we have expended 65% of the revised budget. 30 $27.4 25 20 $19.1 a 95-96 Budget 15 • 95-96 Projected • 3rd Qtr. Actual 10 5 0 C.O.R.F. Expenditures (in millions) Design Engineering: The number of connection permits issued as well as number of design submittals reviewed represents fluctuating workload and contractor preferences that do not hold to predictable quarterly patterns. The number of connection permits issued exceed nine month estimates while submittals reviewed are less than nine month estimates. The number of Capital Outlay Revolving Fund (CORF) projects bid this fiscal year is in line with the estimate. Because the projects were bid later than anticipated, the expected submittal load has shifted to a later period. Major collection projects (by individual district) have been delayed to accommodate city projects such that none will be bid this fiscal year. 160 140 120 100 80 60 40 20 0 40 39 No. of Connection Permits Issued 156.0 No. of Submittals Reviewed X 10 16 14 Budgeted CORF Projects Bid Section 6 -Page 16 a 95-96 Budget •3rd Qtr. Actual 2 O Budgeted Collection Projects Bid ...., i I 7 I I l l J J _j l 1 -J ,J Activity Trends Engineering Planning Further review of the FY 1995-96 Budget Activity trends resulted in additional quantification of activities. The development of the Strategic Plan was assigned to the Engineering Planning Division in July, 1995. During the first six months, the components of the plan were developed and the ground work laid for phase implementation. A scope of work and schedule were adopted and a target date of 1/98 set for completion of the new Strategic Plan. Phase I is underway and includes three projects: the rehabilitation of our existing ocean outfall, a study on hydraulic requirements, and a study to detennine the most equitable capital and user charge system. The Board of Directors approved Professional Services Agreements in the third quarter for the Phase 1 work. The Phase 2 work will start in the fourth quarter of 1995-96. STRAT IC PLAN 1995-998 1997 1998 MAY JUN JUL AUO AWAJW, PHASE 1 ! PSA t"ROJECl' •NO. t, MHA.BU.ITATlDN OF OUJPAU.S PROJECT Nn. J, FINANCIAL. CHARGES A.HD F~ SCHE-DULE PHAS! 2. TREATltan MID REUSE fl'HAS! ), CIE!QA. PUBLIC PAATIC:iPAnON Construction Management The amount budgeted for CORF engineering construction projects in the first nine months is slightly low compared to the FY 1995-96 budget. This was due to the uncertainty surrounding the County bankruptcy and the ultimate delay of projects. Our change orders are below annual estimates due to aforementioned project delays as well as improved project planning. $20.0 $19.1 D 95-96 Budget $15.0 • 9 Months Ended $12.4 $10.0 5.0% $5.0 $.0 CORF Dollar Amount of Construction Change Orders as a Projects % of Construction Contract Section 6 -Page 17 This page was intentionally left blank Section 6 -Page 18 ·1 l l 70 60 50 .!I -C 0 QI 40 ~ E .c e E ::, ::, Ill 30 z ~ :Ii: 20 10 0 Ahead Project Tracking Districts-Wide Measurement Tracking 102 Measurement Projects 49 On Track Done Behind Not Started 9 2 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. The following pages present a status of each departments/divisions performance measures as of the end of the first quarter. Section 7 -Page 1 1995-96 3rd Quarter Report Executive Management 9 Measurement Projects 9 8 7 6 J!l 0 C QI 5 .. E 1l ~ E :::, 4 :::, Ill z m :::E 3 2 Ahead On Track Done Measurement Title % Complete Complete Consolidation Study. 85% Improve management skills of managers and supervisors. 85% Support Boards consideration of committee structure change. 100% Represent Districts' interests in Orange County bankruptcy. 90% Improve agency communication. 75% Direct work on Districts' Strategic Plan. 10% Create climate that promotes change. 75% Establish clear goals for the departments and all subordinate units. 100% Renew NPDES ocean discharge permit. 50% Section 7 -Page 2 Behind On Hold Status Start End On Hold 7/1/95 On Track 7/1/95 Done 7/1/95 12/31/95 On Track 7/1/95 On Track 7/1/95 On Track 7/1/95 On Track 7/1/95 Done 7/1/95 12/31/95 Behind 7/1/95 l Project Tracking J!l 0; ~ ~ .c .. E :::s :::, en z m ::E: Board Secretary 2 Measurement Projects Ahead On Track Done Behind Not Started On Hold Measurement Title Streamline procedures for preparing agenda and minutes. Provide regular updates of Director info. to mgmt. and Committee seer. % Complete 75% 75% Communications 4 Measurement Projects Status On Track On Track Start 7/1/95 7/1/95 Canceled End 4 -r----------------------------------------- .1!! 0~3 -t---------------------------------------- .!~2 -------------E :::s :::, fl) z m ::E: 0 +-------1--------+- Ahead On Track Done Behind Not Started On Hold Measurement Title % Complete Status Start Establish and organize Communications Office. Define Communications Office Mission & develop work plan. Prepare Communications Office Procedures Manual. Develop a biannual publication for public officials and comm. leaders. Section 7 -Page 3 100% 100% Done Done 0% Canceled 0% Canceled 7/1/95 7/1/95 7/1/95 12/31/09 Canceled End 12/31/95 12/31/95 1995-96 3rd Quarter Report Finance Administration 4 Measurement Projects ... ~ 3 0 C11 -!-------------- ._ E .!!2 +--------------E :::, :::, Ill z :II 1 +--------:E 0 +-------+-- Ahead Measurement Title On Track Done 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. Behind Accounting Not Started On Hold % Complete Status 100% Done 100% Done 100% Done 90% On Track 3 Measurement Projects f 0 C11 lii i .c .. E:::, :::s Kl z CII :E Ahead Measurement Title On Track Done Oversee the acquisition of a new integrated Financial Info. System. Develop Districts'-wide Finance policy & procedure manual. Develop Districts'-wide comprehensive budget manual. Behind Section 7 -Page 4 Not Started On Hold % Complete Status 75% On Track 25% Behind 100% Done Canceled Start 7/1/95 7/1/95 1/1/95 7/1/95 Start 7/1/95 7/1/95 7/1/95 End 12/31/95 12131/95 9/30/95 6/30/96 Canceled End 6/30/96 4/30/96 12/31/95 --, 1 1 1 I _J ..J I .J Project Tracking Purchasing & Warehousing 4 Measurement Projects 4.----------------------------------------- --~ 3 +------------------0 GI ~ E ~~2 +------------------E ~ ~ Ill z :g :E Ahead On Track Done Behind Not Started On Hold Measurement Title 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. %Complete 85% 10% 80% 10% Status On Hold Behind Behind Behind Information Technology Administration 4 Measurement Projects 4 .!l 3 -C 0 GI ... E GI GI 2 ~ ... E ~ ~ Ill z :g :E 0 Ahead On Track Done Behind Measurement Title Develop Information Systems Master Plan 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. Not Started On Hold % Complete Status 0% On Hold 100% Done 5% OnTrack 0% Behind Section 7 -Page 5 Start 7/1/95 7/1/95 1/1/95 7/1/95 Start 7/1/95 7/1/95 7/1/95 7/1/95 Canceled End 1/31/96 3/31/96 3/31/96 12/31/95 Canceled End 1995-96 3rd Quarter Report Hardware Support 3 Measurement Projects Ahead On Track Done Measurement Tltle Install auxiliary PBX for Plant 2 to provide added telephone capabilities. Implement Ethernet throughout Districts Implement Districts wide integrated network for timely, accurate and cost- effective sharing and analysis of databases. Behind Not Started % Complete 100% 80% 0% Software & Plant Automation 4 Measurement Projects On Hold Status Done Behind Not Started Start 7/1/95 7/1/95 1/1/95 Canceled End 12/31/95 1/31/96 6/30/96 4 ,------------------------------------------- ~~3 ~-----------------------------------------0 Ill ._ E Ze2~------------------------------E :::i ::I Ill z :g == Ahead On Track Done Measurement Title Extend CMMS application to include data for Warehouse and Auto shop. Software support for installation and implementation of new integrated FIS. Replace Plant Automation System at Plant 2 with new technology Install Districts-wide integrated network. Behind Not Started % Complete 0% 0% 60% 1% Section 7 -Page 6 On Hold Status On Hold On Hold On track Behind Canceled Start End 7/1/95 7/1/95 7/1/95 6/30/96 7/1/95 6/30/96 l J Project Tracking Human Resources Administration 3 Measurement Projects s3 ~------------------------------------------o C .. e 2 --------~ e E ::::i ::I Ill z :g :Eo+-------+-- Ahead Measurement Title On Track Develop and implement a Districts-wide training program. Develop and publish an Employee Handbook. Done Improve the quality of the Management Performance Review Program. Behind Not Started % Complete 80% 100% 85% Human Resources & Training 3 Measurement Projects Ahead On Track Done Behind Not Started Measurement Title % Complete On Hold Status On Track Done On Track On Hold Status Develop and implement training opportunities and programs. Improve and refine management and professional staff evaluations. Conduct Districts-wide attitude survey. 50% On Track s 85% On Track 100% Safety & Emergency Response 3 Measurement Projects Done Start 7/1/95 7/1/95 7/2/95 Start 7/1/95 7/1/95 7/1/95 Canceled End 1/15/96 5/30/96 Canceled End 11/30/95 oi2 r ------------------------------------------j ~ E ::::i ::I Ill z m :E O +-------I- 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. Behind Section 7 -Page 7 Not Started On Hold % Complete Status 100% Done 10% On Track 0% On Hold Start 7/1/95 7/1/95 7/1/95 Canceled End 12/31/95 1995-96 3rd Quarter Report 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 % Complete 85% 70% 85% Maintenance Scheduling 2 Measurement Projects Ahead On Track Done Measurement Title Identify optimum preventive maintenance rates to reduce costs. Benchmark equipment down time and establish acceptable targets. Behind Not Started % Complete 50% 50% Section 7 -Page 8 On Hold Status On Track Ahead On Track On Hold Status On Track On Track Start 7/1/95 7/1/95 1/1/95 Start 7/1/95 7/1/95 Canceled End Canceled End 1 Project Tracking Plant Maintenance 4 Measurement Projects Ahead On Track Done Mec1surement Title Develop c1 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. Behind Not Started % Complete 40% 15% 25% 20% Collection Facilities Maintenance 4 Measurement Projects 4 J!l 3 -C 0 G) ... E G) G) 2 .c ... E ::s ::, Ill zZ :ii: 0 Ahead On Track Done Measurement Title Develop a CMMS data base for pump stations & a plant maint. listing. Continue to investigate alternate chemicals for cheaper odor control. Contract for line cleaning in some of the Districts' Assmt. Districts. Expand a root control program for District No. 7 sewer system. Behind Section 7 -Page 9 Not Started %Complete 70% 60% 60% 80% On Hold Stcltus On Track Behind On Track Behind On Hold Stcltus On Track On Track Behind Behind Stclrt 7/1/95 7/1/95 7/1/95 7/1/95 Stclrt 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 1995-96 3rd Quarter Report ~ 0 .. ~ 2 .a ! E:::, :::, Ill z :g == 0 Ahead On Track Mechanical Maintenance 3 Measurement Projects Done Behind Not Started On Hold Measurement Title % Complete Status Initiate tracking program for repetitive breakdowns of digester pumps. Reduce costs by expanding central generation engines maintenance. Start cross training of personnel between plants. 50% On Track 75% 50% Electrical Maintenance 4 Measurement Projects Ahead On Track Done Measurement Title Complete CMMS database with regard to A/C systems. Develop a predictive maint. prog·ram for electric equipment. Develop a 12-Kilovolt meter and relay database. Privatize Central Generation Generator Maintenance to reduce costs. Behind Section 7 -Page 10 Not Started % Complete 100% 80% 95% 100% Ahead On Track On Hold Status Done Ahead Ahead Done 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 7 1 I l _J J .J Project Tracking Instrumentation Maintenance 3 Measurement Projects Ahead On Track Done Measurement Title Develop activity codes within CMMS to track staff efforts. Privatize maintenance services for the 13 influent flow meters. Develop a charting process for recording preventative maint. backlog. Behind Not Started %Complete 15% 95% 90% Technical Services Administration 4 Measurement Projects Ahead On Track Done 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 protocols & optimize staff usage. Behind Not Started % Complete 100% 75% 15% 75% Section 7 -Page 11 On Hold Status On Track Behind Behind On Hold Status Done On Track On Hold 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 1995-96 3rd Quarter Report Environmental Management 3 Measurement Projects Ahead On Track Done Measurement Title 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 Emission Inventory Plan and Report. Behind Not Started % Complete 10% 90% 70% Environmental Sciences Laboratory 3 Measurement Projects Ahead On Track Done Behind Not Started Measurement Title % Complete On Hold Status Behind Behind Behind On Hold Status Develop expanded air analysis capabilities 30% On Track Reduce labor costs for metals analyses of wastewater. Reduce labor costs for organic analyses of wastewater. Section 7 -Page 12 10% On Track 10% On Track 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 7 I 7 -1 j -j l J l .J Project Tracking Source Control 3 Measurement Projects Ahead On Track Done Behind Not Started Measurement Title % Complete Evaluate the EPA Effluent Guidelines for regulating industrial users. Finalize the results of the non-industrial source sampling. 75% 60% 70% Develop a program to regulate small-quantity dischargers. Ahead Measurement Title Reduced natural gas cost. Increase staff training. Improve employee communications. On Track Operations Administration 3 Measurement Projects Done Behind Not Started % Complete NA 100% 100% Section 7 -Page 13 On Hold Status On Track On Track On Track On Hold Status On Track Done Done 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 1995-96 3rd Quarter Report Plant Operations 4 Measurement Projects 4 .... J!l 3 C 0 Cl) ,_ E Cl) Cl) 2 .Q .. E :, :, Ill z gi :!!: 0 Ahead On Track Done Behind Not Started Measurement Title % Complete Study staffing productivity per Ernst & Young review. Reduce overtime. 50% N/A N/A N/A Run Treatment plant cost-effectively. Reduce biosolids disposal cost. Ahead On Track Measurement Title Engineering Administration 2 Measurement Projects Done Behind Not Started % Complete Modify Planning & Design organization for E & Y recommendations Implement all 14 recommendations in CIP Report 50% 30% Section 7 -Page 14 On Hold Status On Track On Track On Track On Track On Hold Status On Track On Track Start 7/1/95 7/1/95 7/1/95 7/2/95 Canceled End Canceled Start 7/1/95 7/1/95 End 6/30/96 7 l l 1 -1 _J ... J Project Tracking Design Engineering 5 Measurement Projects 5--,-------------------------------------------- .!i 4 +-------- 0 5i '" E 3 +--------,! I!! § ill 2 +-------- z :i 1 +-------- 0 +------+-- Ahead Measurement Title On Track Done Behind Not Started % Complete Complete 75% of conn pennits in 1day, 90% in 3 days, 100% in 5 Design facilities which satisfy customer 100% N/A Track and manage $33.5 million CORF project budget Comply with adopted Master Plan Improve submittal process on all new design projects 3 --,--------- .!i o Iii 2 +--------... E .8 I!! E ;l 1 ::,l'G +--------z GI :E 0 +-------+--' Ahead On Track Measurement Title Comply with adopted Master Plan Track and manage budget and schedule Update "as-built" infonnation NIA N/A 80% Engineering Planning 3 Measurement Projects Done Behind Not Started % Complete Section 7 -Page 15 75% 75% 75% On Hold Status On Track On Track Behind On Track On Track On Hold Status On Track On Track On Track Start 7/1/95 7/1/95 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 6/30/96 6/30/96 Canceled End 6/30/96 6/30/96 6/30/96 1995-96 3rd Quarter Report Construction Management 3 Measurement Projects .l!l 0 5i 3 +------- .! ! 2 -+-------E::, ::, en z :g :ii: Ahead Measurement Title On Track Done Revise the record drawing process of new construction projects. Improve shop drawings submission process on all construction projects. Keep construction staff up to date on building code and standards Behind Not Started % Complete 75% 75% 75% Section 7 -Page 16 On Hold Status On Track On Track On Track Start 7/1/95 7/1/95 7/1/95 Canceled End COUNTY SANITATION DISTRICTS of Orange CountyJ California Finance Department Accounting Division [714) 962-2411 mailing address: P.O. Box 8127 Fountain Valley, California 92728-8127 street address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 GSDDC03/96