1. MINUTES OF ADMINISTRATION/FINANCE ISSUES COMMITTEE MEETING HELD NOVEMBER 13, 2014

Transcription

1 AGENDA ADMINISTRATION/FINANCE ISSUES COMMITTEE MEETING WITH BOARD OF DIRECTORS* ORANGE COUNTY WATER DISTRICT Ward Street, Fountain Valley, CA Thursday, December 11, 2014, 8:00 a.m. Conference Room C-2 *The OCWD Administration and Finance Issues Committee meeting is noticed as a joint meeting with the Board of Directors for the purpose of strict compliance with the Brown Act and it provides an opportunity for all Directors to hear presentations and participate in discussions. Directors receive no additional compensation or stipend as a result of simultaneously convening this meeting. Items recommended for approval at this meeting will be placed on the December 17, 2014 Board meeting Agenda for approval. ROLL CALL ITEMS RECEIVED TOO LATE TO BE AGENDIZED RECOMMENDATION: Adopt resolution determining need to take immediate action on item(s) and that the need for action came to the attention of the District subsequent to the posting of the Agenda (requires two-thirds vote of the Board members present, or, if less than two-thirds of the members are present, a unanimous vote of those members present.) VISITOR PARTICIPATION Time has been reserved at this point in the agenda for persons wishing to comment for up to three minutes to the Board of Directors on any item that is not listed on the agenda, but within the subject matter jurisdiction of the District. By law, the Board of Directors is prohibited from taking action on such public comments. As appropriate, matters raised in these public comments will be referred to District staff or placed on the agenda of an upcoming Board meeting. At this time, members of the public may also offer public comment for up to three minutes on any item on the Consent Calendar. While members of the public may not remove an item from the Consent Calendar for separate discussion, a Director may do so at the request of a member of the public. CONSENT CALENDAR (ITEMS NOS. 1 6) All matters on the Consent Calendar are to be approved by one motion, without separate discussion on these items, unless a Board member or District staff request that specific items be removed from the Consent Calendar for separate consideration. 1. MINUTES OF ADMINISTRATION/FINANCE ISSUES COMMITTEE MEETING HELD NOVEMBER 13, 2014 RECOMMENDATION: Approve minutes as presented 2. MONTHLY CASH CONTROL REPORT RECOMMENDATION: Agendize for the December 17 Board Meeting: Receive and file Summary Cash and Cash Equivalents Control Report dated November 30,

2 3. BIENNIAL REVIEW OF OCWD CONFLICT OF INTEREST CODE RECOMMENDATION: Agendize for December 17 Board meeting: Adopt amended Conflict of Interest Code revised Appendix A, and direct District Secretary to submit amendment to Orange County Clerk of the Board prior to December 31, REQUEST FOR PROPOSALS FOR UTILITY AUDIT/COST REDUCTION SERVICES RECOMMENDATION: Agendize for the December 17 Board meeting: Authorize issuance of Request for Proposals for utility audit/cost reduction services 5. AVAILABILITY OF COMMERCIAL PAPER FOR REPLACEMENT & REFURBISHMENT (R&R) PROJECTS RECOMMENDATION: Agendize for the December 17 Board meeting: Authorize CFO/Treasurer to issue commercial paper as needed to balance cash flows for two R&R projects Burris Basin Pump Station and Imperial Head Gates & Weir Pond Rehab Project 6. AMENDMENT TO R&R PROJECT R14020 WITH TRI-TEK BURGLAR ALARM COMPANY TO UPGRADE EXISTING SECURITY SYSTEM AT PRADO FIELD OFFICE RECOMMENDATION: Agendize for December 17 Board meeting: Authorize issuance of Amendment to Project R14020 with Tri-Tek Burglar Alarm Company in the amount of $13,922 for additional security cameras. MATTERS FOR CONSIDERATION END OF CONSENT CALENDAR 7. INVESTMENT PORTFOLIO HOLDINGS REPORT RECOMMENDATION: Agendize for December 17 Board meeting: Receive and file Investment Portfolio Holdings Report dated November 30, RESULTS OF DEMAND RESPONSE PROPOSAL SOLICITATION & RECOMMENDATION FOR ENERNOC AWARD RECOMMENDATION: Agendize for December 17 Board meeting: Authorize General Manager to finalize negotiations and execute a two-year agreement extending between January 1, 2015 and December 31, 2016 with EnerNOC for eleven megawatt curtailment demand response services for the GWRS 9. OCWD RULES OF ORDER RECOMMENDATION: Agendize for December 17 Board meeting: Adopt the OCWD Rules of Order 10. OCWD POLICY AND PROCEDURES MANUAL RECOMMENDATION: Agendize for December 17 Board meeting: Adopt the OCWD Policy and Procedures Manual 2

3 INFORMATIONAL ITEMS 11. PREPARATION OF FISCAL YEAR BUDGET 12. TEETER PROGRAM UPDATE 13. MONTHLY CASH DISBURSEMENTS DETAIL REPORT CHAIR DIRECTION AS TO WHICH ITEMS IF ANY TO BE AGENDIZED AS MATTERS FOR CONSIDERATION AT THE DECEMBER 17 BOARD MEETING DIRECTOR S ANNOUNCEMENTS/REPORTS GENERAL MANAGER S ANNOUNCEMENT/REPORT ADJOURNMENT In accordance with the requirements of California Government Code Section , this agenda has been posted in the main lobby of the Orange County Water District, Ward Street, Fountain Valley, CA and on the OCWD website not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the District Secretary. Backup material for the Agenda is available at the District offices for public review and can be viewed online at the District s website: Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability-related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from the District Secretary at (714) , by at jdurant@ocwd.com by fax at (714) Notification 24 hours prior to the meeting will enable District staff to make reasonable arrangements to assure accessibility to the meeting. As a general rule, agenda reports or other written documentation has been prepared or organized with respect to each item of business listed on the agenda, and can be reviewed at Copies of these materials and other disclosable public records distributed to all or a majority of the members of the Board of Directors in connection with an open session agenda item are also on file with and available for inspection at the Office of the District Secretary, Ward Street, Fountain Valley, California, during regular business hours, 8:00 am to 5:00 pm, Monday through Friday. If such writings are distributed to members of the Board of Directors on the day of a Board meeting, the writings will be available at the entrance to the Board of Directors meeting room at the Orange County Water District office. 3

4 ADMINISTRATION AND FINANCE ISSUES COMMITTEE MEMBERS To be determined - Chair Roger Yoh - Vice Chair Steve Sheldon Harry Sidhu Jan Flory Alternates: Vincent Sarmiento Alternate 1 Philip Anthony Alternate 2 Denis Bilodeau Alternate 3 Cathy Green Alternate 4 Shawn Dewane Alternate 5 Dina L. Nguyen Alternate 6 4

5 1

6 MINUTES OF BOARD OF DIRECTORS MEETING ADMINISTRATION AND FINANCE ISSUES COMMITTEE ORANGE COUNTY WATER DISTRICT November 13, 8 a.m. The Administration and Finance Issues Committee meeting was called to order by Director Kathryn Barr in the Conference Room C-2 in Fountain Valley, CA. The Assistant District Secretary reported quorum of the Committee. Committee Members Kathryn Barr, Chair Roger Yoh Steve Sheldon Harry Sidhu Jan Flory Alternates Vincent Sarmiento Philip Anthony Denis Bilodeau Cathy Green Shawn Dewane CONSENT CALENDAR (not present) (arrived 8:05 a.m.) (not present) (arrived 8:10 a.m.) (not present) (not present) (not present) The Consent Calendar items were approved upon motion by Director Green, seconded by Director Anthony and carried [3-0] as follows. [Yes- Barr, Sheldon, Green/No-0] 1. Minutes of Previous Meeting The Minutes of the Administration/Finance Issues Committee meeting held October 9, 2014 are approved as presented. 2. Monthly Cash Control Report Recommended for approval at November 19 Board meeting: Receive and file Summary Cash and Cash Equivalents Control Report dated October 31, District Statement of Investment Policy FY Recommended for approval at November 19 Board meeting: Adopt the Statement of Investment Policy for Fiscal Year District Travel/Expense Reports FY OCWD staff Mike Markus, General Manager Randy Fick, CFO/Treasurer Joel Kuperberg, General Counsel Judy-Rae Karlsen, Assistant District Secretary Paula Bouyounes, Bruce Dosier, Stephanie Dosier, Kevin Greene, Bonnie Howard, John Kennedy, Vishav Sharma Others: Peer Swan Irvine Ranch Water District John Earl Surf City Voice Scott Myles Bureau Veritas Recommended for approval at November 19 Board meeting: Receive and file District Travel and Expense reports for FY

7 11/13/14 5. OCWD Website - Amendment to NetRelations Agreement Recommended for approval at November 19 Board meeting: Authorize issuance of an Amendment to NetRelations Agreement for an amount not to exceed $30,510 to incorporate the new scope of work, which includes merging the GWRS website into the OCWD website. MATTERS FOR CONSIDERATION Director Sheldon requested the Committee advance Agenda Items No for immediate discussion. Director Barr noted there was a consensus of Directors present to accommodate Director Sheldon s request. Director Sidhu arrived at 8:05 a.m. during the following discussion. 6. Revised Meeting Agendas General Manager Mike Markus reported the new agenda format was revised by General Counsel and included prior Committee comments and recommendations. Director Barr noted that Director Flory s comments (distributed by ) will be incorporated into the Committee discussion. Discussion ensued about the placement of Public Comment on the agenda and the Committee took the following action. Upon motion by Director Sheldon, seconded by Director Green and carried [4-0], the Committee recommended that the Board at its November 19 Board meeting: Adopt the new agenda format. [Yes/ Barr, Sheldon, Sidhu, Green/No-0] Director Sarmiento arrived at 8:10 a.m. during the following discussion. 7. OCWD Rules Of Order Mr. Markus reported the current version of the OCWD Rules of Order incorporates prior Committee comments and recommendations and staff is seeking direction on any further modifications prior to Board review and adoption. Director Barr noted that Director Flory s comments (distributed by ) will be incorporated into the Committee discussion. Director Green requested discussion on the Motion to Reconsider (page 14). Discussion ensued and the Committee recommended that staff delete the proposed revision and return the section to its original language. Director Green stated that Alternate Committee Members are appointed by the Board President and they do not vote based on alphabetical order (page 3). The Committee recommended that change also be made. The Committee then discussed the desire for increased government transparency and recommended the Secretary take roll call votes for all actions taken at Board and Committee meetings (page 7). There was a consensus of the Committee on the recommended changes and the Committee took the following action. Upon motion by Director Sarmiento, seconded by Director Sidhu and carried [5-0], the Committee recommended that staff incorporate recommended changes and the Board at its November 19 Board meeting: Adopt the OCWD Rules of Order. [Yes/ Barr, Sheldon, Sidhu, Sarmiento, Green/No-0] 2

8 11/13/14 8. Internet Streaming of OCWD Board Meetings Director of IS/Property Bruce Dosier presented the results of staff s investigation into the options and costs associated with the video recording and/or internet streaming of Committee and Board meetings. He discussed various scenarios and responded to Committee questions and concerns about video recording, packaging, indexing and archiving of Board and Committee meetings for viewing on the internet. Director Barr noted that Director Flory s comments (distributed by ) will be incorporated into the Committee discussion. She advised that while Director Flory believes there is widespread interest in internet streaming of meetings, she advised there were no requests for video recording or streaming Board meetings from Garden Grove residents. Irvine Ranch Water District Director Peer Swan reported that IRWD does not video record or stream Board meetings on the internet. Surf City Voice representative John Earl suggested that Directors better understand the need for public access to the local government process and he recommended the live streaming option. He also requested that Directors learn the new agenda format that encourages public comment and public participation. The Committee discussed options for staffing the project and then directed staff to investigate the costs associated with in-house recording and production. The Committee recommended this matter be deferred to the December 3 Board meeting to allow time for staff to investigate scenarios and options requested by the Committee. The Committee then took the following action. Upon motion by Director Sheldon, seconded by Director Green and carried [5-0], the Committee recommended that is matter be deferred to the December 3 Board meeting. [Yes/ Barr, Sheldon, Sidhu, Sarmiento, Green/No-0] 9. Investment Portfolio Holdings Report District Treasurer/Chief Financial Officer Randy Fick reviewed the District s Portfolio Holdings Report dated October 31, He presented an overview of current market trends and reviewed the market value of the District s portfolio. Mr. Fick reported the one-year Treasury note as of October 30, 2014 is 0.11%; the two-year yield is 0.50%, the five-year yield is 1.62%; and the total rate of return on investments is 0.901%. IRWD Director Peer Swan requested that staff provide a financial analysis of how additional financial burdens will impact the District s AAA credit rating. The Committee then took the following action. Upon motion by Director Green, seconded by Director Sidhu and carried [5-0], the Committee recommended that the Board at its November 19 Board meeting: Receive and file Investment Portfolio Holdings Report dated October 31, [Yes/ Barr, Sheldon, Sidhu, Sarmiento, Green/No-0] 10. Budget to Actual Report - First Quarter FY Accounting Manager Kevin Greene presented the First Quarter Fiscal Year Budget to Actuals report. He reported that General Fund costs were $1.2 million below budget, that Replacement & Refurbishment expenses were $3.6 million less than anticipated, and Water Purchases were $1.4 million less than expected. The Committee took the following action. Upon motion by Director Green, seconded by Director Sidhu and carried [5-0], the Committee recommended that the Board at its November 19 Board meeting: Receive and file the Budget 3

9 to Actual Report for Fiscal Year First Quarter ending September 30, [Yes/ Barr, Sheldon, Sidhu, Sarmiento, Green/No-0] 11/13/ Risk and Safety Department Responsibilities and Staffing Risk and Safety Manager Paula Bouyounes reviewed the results from the District s Health and Safety assessment that was performed by Bureau Veritas. She gave a briefing on the responsibilities in the Risk and Safety department and noted certain deficiencies as a direct result of the increased regulatory environment. Ms. Bouyounes reported the need for an Environmental, Health and Safety Specialist to manage the immediate and ongoing regulatory tasks Upon motion by Director Green, seconded by Director Sidhu and carried [4-0], the Committee recommended that the Board at its November 19 Board meeting: 1) Approve the addition of an Environmental, Health, and Safety Specialist job classification within the Risk & Safety Department as a salary grade N-16; and 2) Approve the change in salary grade for the Risk & Safety Manager job classification from N-19 to N-20. [Yes/ Barr, Sidhu, Sarmiento, Green/No-0] INFORMATIONAL ITEM 12. Monthly Cash Disbursements Detail Report Mr. Fick advised the Monthly Cash Disbursement Detail Report was included in the packet and all payments for the previous month are available for Committee review. CHAIR DIRECTION AS TO WHICH ITEMS IF ANY TO BE AGENDIZED AT THE NOVEMBER 19 BOARD MEETING The Committee recommended Items No. 2-7 and 9-11 be placed on the Consent Calendar at the November 19 Board meeting. ADJOURNMENT There being no further business, the meeting was adjourned at 9:35 a.m. Kathryn Barr, Chair 4

10 2

11 AGENDA ITEM SUBMITTAL Meeting Date: December 11, 2014 To: Administration/Finance Issues Cte. Board of Directors From: Mike Markus Staff Contact: R. Fick/V. Sharma Budgeted: N/A Budgeted Amount: N/A Cost Estimate: N/A Funding Source: N/A Program/Line Item No.: N/A General Counsel Approval: N/A Engineers Report: N/A CEQA Compliance: N/A Subject: MONTHLY CASH CONTROL REPORT SUMMARY The following monthly financial information is provided in the staff report. Attachment(s): Summary Cash and Cash Equivalent Control Report Summary of Cash Reserves Summary Sources and Disbursements Sources of Funds Disbursement of Funds RECOMMENDATION Agendize for December 17 Board meeting: Receive and file Summary Cash and Cash Equivalents Control Report dated November 30, PRIOR RELEVANT BOARD ACTION(S) Monthly

12 ORANGE COUNTY WATER DISTRICT SUMMARY CASH AND CASH EQUIVALENTS CONTROL REPORT FOR THE PERIOD ENDED NOVEMBER 30,2014 Note: Total cash and cash equivalent includes custodial funds of NWRI worth $74,027. A Petty Cash- held at the District's office (Fountain Valley) B District's Checking Accounts C District's Money Market Accounts D Trust Debt service Accounts E Custodial Investment Accounts- Managed in house

13 ORANGE COUNTY WATER DISTRICT RESERVES For the Year to Date Period Ended November 30, 2014 (Unaudited/Preliminary) Beginning Ending Balance Reserve Year Balance As of 11/30/2014 Po lie~ Operating Reserves R & R Fund 73,723,752 76,906,956 71,300,000 (1) Toxic Clean Up Fund 4,000,000 4,000,000 4,000,000 (2) General Contingencies fund 3,000,000 3,000,000 3,000,000 (3) Water Reserve Fund 11,781,603 13,064,475 65,748,750 (4) Paygo CIP Fund 18,781,926 20,865,260 20,865,260 (5) SRF Loan Reserve 5,205,375 6,872,042 9,200,000 (6) Operating Reserve (15% of Op. Budget) 17,994,103 19,738,474 19,738,474 (7) Operating Fund 45,152,041 37,244,327 44,151,910 (8) Total- Operating Reserves 179,638, ,691, ,004,394 Restricted Reserves CIP Reserves 8,882,104 6,553,327 6,553,327 SWAP - Collateral Pledged 1,196,052 1,812,675 1,812,675 (9) NWRI Deposits 55,383 74,027 74,027 Debt -Service Reserves 11,252,003 11,278,083 11,261,963 (10) Total Restricted Reserves 21,385,542 19,718,112 19,701,992 Total Reserves 201,024, ,409, ,706,386 (1) Per Reserve Policy, projected Replacement & Refurbishment (R&R) cost as defined by District's R&R model. (2) Established for toxic spills and cleanup with a target of $4 million per Reserve Policy. (3) Set by the District Act to provide for expenditures that have not been anticipated in the annual budget. (4) The maximum upper limit is enough funds to purchase 50% of water needed to have an accumulated basin overdraft of 125,000 a.f. currently projected at $65,748,750 ($667.5/a.f. x 50% x (322,000/a.f. projected overdraft as of June 30, ,000/a.f. optimum overdraft) (5) Per Paygo budget transfer. (6) Debt service reserve of $9,200,000 or one years payment a requirement for the GWRSIE SRF loan. (7) The Operating Reserve Fund is established by the District Act and set at 15% of the operating budget. (8) Per the Reserve Policy, the District shall maintain a minimum of six months of annual General Fund and Debt Service budgeted appropriations currently $54,764,432 General Fund and $33,539,389 Debt Service. (9) The District is required to post collateral should the Swap value exceed the $15 million threshold. (10) Per Series 2009A Trust Agreement, the District is required to maintain a Reserve Fund of $11,261,

14 Note: Sources and l'ses of district funds reflect b<>th operating and capital funds. Of>"raling funds consist of annual operating revenues or cash reserves.

15 Orange County Water District Sources of Funds for the Year to Date Period Ended November 30, 2014 $45,000,000 $42,539,910 $40,000,000 $35,000,000 $30,000,000 $25,000, $20,000,000 $15,000,000 $10,000,000 $s,m,464 --o=rt $4,947 $1,373,852 $14,554 $2,351,369 --f'r';;;q

16 Orange County Water District Disbursement of Funds for the Year to Date Period Ended November 30, 2014 $18,000,000,------~--~~~--~~~--~---~~~~------~~---~---~---~ , $16,794,286 $16,348,729 I ~ I ! $H,435, $4,000, ~-~ $1,475,645 ~ ~ I 2: i I ~ I ~ I i ~ I ~ ~ :J: ~ - ~ ~ ~ ~ ~ ~ ~ -~ - ::I ;t;:t \ ' I $0 Water Purchases Water Production Department Payroll Construction (GWRSIE) Bond Debt Payments Bond Admin Costs Commercial Paper CIP In-Lieu State Loans ~ i I All Other General Fund Disbursements

17 3

18 AGENDA ITEM SUBMITTAL Meeting Date: December 11, 2014 To: Administration/Finance Issues Cte Board of Directors From: Mike Markus Staff Contact: J. Kuperberg/J. Durant Budgeted: N/A Budgeted Amount: N/A Cost Estimate: N/A Funding Source: N/A Program/ Line Item No. General Counsel Approval: Required Engineers/Feasibility Report: N/A CEQA Compliance: N/A Subject: BIENNIAL REVIEW OF OCWD CONFLICT OF INTEREST CODE SUMMARY The Political Reform Act requires local government to review its Conflict of Interest Code biennially to determine if it is accurate or requires amendment. The District s Conflict of Interest Code consists of the following three documents: 1) Conflict of Interest Code; 2) Exhibit A List of Designated Filers; and 3) Exhibit B Disclosure Categories. Staff recommends amendment of Exhibit A to include additional designated filers. The revised Exhibit A is attached reflecting the recommended changes. Attachment(s): OCWD Conflict of Interest Code Revised Designated Filers list (Exhibit A) Disclosure Categories (Exhibit B). RECOMMENDATION Agendize for December 17 Board meeting: Adopt amended Conflict of Interest Code revised Exhibit A, and direct District Secretary to submit amendment to Orange County Clerk of the Board prior to December 31, DISCUSSION The District s Conflict of Interest Code (attached) is composed of the following three documents: 1) Conflict of Interest Code; 2) Appendix A, Designated Filers (setting forth the staff designated positions), and 3) Appendix B, Disclosure Categories (all District positions are required to disclose to the maximum level). OCWD has adopted the model code as recommended by the Fair Political Practices Commission under Section of its regulations. The advantages to adopting the model code are that since it was prepared by the FPPC, OCWD can be assured it contains all provisions the FPPC believes necessary for a complete and comprehensive code. Additionally, once the Model Code is adopted, any changes in Code requirements are automatically included in the District s Code. Staff has reviewed the list of designated filers (Exhibit A) and determined that the following changes are necessary to add additional staff to the Designated Filers list.

19 TITLE Assistant Director of Engineering Principal Hydrogeologist Lead Distribution Technician NEW FILERS Added to Designated Filers List Added to Designated Filers List Added to Designated Filers List PRIOR RELEVANT BOARD ACTION(S) Biennial

20 Adopted: November 4, 2009 RESOLUTION NO RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY WATER DISTRICT ADOPTING A CONFLICT OF INTEREST CODE WHICH SUPERCEDES ALL PRIOR CONFLICT OF INTEREST CODES AND AMENDMENTS PREVIOUSLY ADOPTED WHEREAS, the Political Reform Act of 1974, Government Code Section et. seq. ( the Act ), requires a local government agency to adopt a Conflict of Interest Code pursuant to the Act; and WHEREAS, the Orange County Water District has previously adopted a Conflict of Interest Code and that Code now requires updating; and WHEREAS, amendments to the Act have in the past and foreseeably will in the future require conforming amendments to be made to the Conflict of Interest Code; and WHEREAS, the Fair Political Practices Commission has adopted a regulation, Title 2, California Code of Regulations, Section 18730, which contains terms for a standard model Conflict of Interest Code, which, together with amendments thereto, may be adopted by public agencies and incorporated by reference to save public agencies time and money by minimizing the actions required of such agencies to keep their codes in conformity with the Political Reform Act; NOW, THEREFORE, the Board of Directors of the Orange County Water District does hereby resolve as follows: Section 1: The terms of Title 2, California Code of Regulations, Section (Attachment A) and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference and, together with Exhibits A and B in which members and employees are designated and disclosure categories are set forth, constitute the Conflict of Interest Code of the Orange County Water District. Section 2. The provisions of all Conflict of Interest Codes and Amendments thereto previously adopted by the Orange County Water District and hereby superseded. Section 3. The Filing Officer is hereby authorized to forward a copy of this Resolution to the Clerk of the Orange County Board of Supervisors for review and approval by the Orange County Board of Supervisors as required by California Government Code Section

21 ATTACHMENT A CONFLICT OF INTEREST CODE FOR THE ORANGE COUNTY WATER DISTRICT The Political Reform Act, Government Code Sections 81000, et seq., requires state and local government agencies to adopt and promulgate Conflict of Interest Codes. The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Regs. Section 18730) which contains the terms of a standard Conflict of Interest Code, which may be incorporated by reference in an agency s code. After public notice and hearing it may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation and the attached Appendix designating officials and employees and establishing disclosure categories, shall constitute the Conflict of Interest Code of the Orange County Water District. Designated employees shall file statements of economic interests with the Orange County Water District s Political Reform Act Filing Officer, General Manager or District Secretary, who will make the statements available for public inspection and reproduction (Government Code Section 82008). Upon receipt of the statements of the General Manager, Board Member, General Counsel, Assistant General Counsel, Treasurer/Chief Financial Officer and Finance Manager, the Filing Officer shall make and retain a copy and forward the original of these statements to the Clerk of the Orange County Board of Supervisors. Statements for all other designated employees will be retained by the Filing Officer.

22 EXHIBIT A ORANGE COUNTY WATER DISTRICT LIST OF DESIGNATED POSITIONS CONFLICT OF INTEREST CODE Designated Positions Accounting Manager Assistant District Engineer Assistant District Secretary Assistant General Counsel Assistant General Manager Board Member Buyer Chief Hydrogeologist Consultants Director of Engineering Director of Human Resources Director of Information Services/Property Director of Laboratory Director of Natural Resources Director of Public Affairs Director of Regulatory Affairs Director of Research Director of Water Production Director of Water Quality District Secretary Executive Director Engineering & Local Resources Executive Director Operations Executive Director Planning & Natural Resources Field Headquarters Manager Field Headquarters Maintenance Supervisor Finance Manager General Counsel General Manager GWR System Program Manager Lead Distribution Technician Principal Hydrogeologist Prado Operations Supervisor Property Manager Purchasing Manager Risk & Safety Manager Senior Buyer Treasurer/Chief Financial Officer Disclosure Categories OC-01 OC-01 OC-02 OC-01 OC-01 OC-01 OC-05 OC-01 OC-30 OC-01 OC-01 OC-01 OC-01 OC-01 OC-01 OC-01 OC-01 OC-01 OC-01 OC-02 OC-01 OC-01 OC-01 OC-01 OC-05 OC-01 OC-01 OC-01 OC-01 OC-05 OC-05 OC-43 OC-01 OC-05 OC-01 OC-05 OC-01

23 EXHIBIT B ORANGE COUNTY WATER DISTRICT Disclosure Category OC-01 OC-02 OC-05 OC-08 OC-12 OC-30 OC-43 Disclosure Description All interests in real property in Orange County or the District, as well as investments, business positions and sources of income (including gifts, loans and travel payments). All investments, business positions and sources of income (including gifts, loans and travel payments). All investments in, business positions with and income (including gifts, loans and travel payments) from sources that provide services, supplies, materials, machinery, equipment (including training and consulting services) used by this department or District. All investments in, business positions with and income (including gifts, loans and travel payments) from sources that develop or provide computer hardware/software, voice data communications, or data processing goods, supplies, equipment, or services (including training and consulting services) used by the department. All interests in real property in Orange County, as well as investments in, business positions with and income (including gifts, loans and travel payments) from sources that invest funds or engage in the business of insurance including, but not limited to insurance companies, carriers, holding companies, underwriters, brokers, solicitors, agents, adjusters, claims mangers and actuaries; from financial institutions including but not limited to, banks, savings & loan associations and credit unions or sources that have filed a claim, or have a claim pending, against Orange County. Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest category in the code subject to the following limitation: The Department Head/Director/General Manager/Superintendant/etc. may determine that a particular consultant, although a designated position, is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant s duties and, based upon that description, a statement of the extent of disclosure required. The determination of disclosure is a public record and shall be filed with the Form 700 and retained by the Filing Officer for public inspection. All income, investments, and business positions; and all income from gifts, to the extent the same arise from entities dealing in engineering design or other engineering work on public agency projects and construction firms and construction related enterprise of any kind dealing with public agency projects, or otherwise doing business in the engineering or construction sector or any other supporting business section within Orange County or the District.

24 4

25 AGENDA ITEM SUBMITTAL Meeting Date: December 11, 2014 Budgeted: N/A Budgeted Amount: N/A To: Administration/Finance Issues Cte. Cost Estimate: N/A Board of Directors Funding Source: N/A Program/Line Item No.: N/A From: Mike Markus General Counsel Approval: N/A Engineers/Feasibility Report: N/A Staff Contact: R. Fick /J. Kennedy CEQA Compliance: N/A Subject: SUMMARY REQUEST FOR PROPOSALS FOR UTILITY AUDIT/COST REDUCTION SERVICES The District spent about $10 million on utilities in fiscal year The District is proactive in managing these costs; however firms exist that specialize in finding utility cost savings. Staff recommends issuing an RFP to ultimately hire a specialty audit firm to audit the District s utility bills and identify any overpayments or future cost reductions related to utilities. Attachment(s): Draft Request for Proposals RECOMMENDATION Agendize for the December 17 Board meeting: Authorize issuance of Request for Proposals for utility audit/cost reduction services. BACKGROUND The District spent about $10 million on utilities in FY To insure that the District has not overpaid or is not missed opportunities to further reduce costs, staff recommends the use of a specialty audit firm to review/audit the District s utility costs. The District s utility providers of record are: Electricity Southern California Edison, Constellation, & City of Anaheim Demand Response - EnerNOC Natural Gas The Gas Company Water Cities of Anaheim, Fountain Valley, Orange & Huntington Beach The selected firm would analyze the District s utility contracts/arrangements, billing rates, service history, etc. The review period shall cover the maximum period that refunds can be obtained as far back as allowed by law and regulation. Also, the firm would identify cost reduction items that result in no refund, but reduce future costs. Examples of future cost reductions would include a review of alternative rate schedules, reducing peak demand, ensure the low cost providers are being utilized, only services used are being paid for, etc. In exchange for identifying any savings, the selected firm would be compensated on a percentage of revenue/savings to be determined via the

26 RFP process. The schedule for the Requests for Proposal for utility audit/cost reduction services is as follows: RFP mailed on December 18, 2014 Deadline for Proposals January 22, 2015 Tentative Date for Award February 18, 2015 PRIOR RELEVANT BOARD ACTION(S) N/A

27 DRAFT December 11, 2014 Request for Proposals (RFP) for Utility Audit/Cost Reduction Services for the Orange County Water District The Orange County Water District (District) is seeking proposals from qualified firms with utility audit/cost reduction experience and expertise to provide utility expense audit and cost reduction management services for the District that spends about $10 million annually on utilities (natural gas, electricity, and water). The service is expected to commence immediately following award of the contract by the Board of Directors and upon execution of the District s Agreement. Background The District was formed in 1933 by a special act of the California State Legislature to protect Orange County s rights to water in the Santa Ana River. District manages the vast groundwater basin under northern and central Orange County that supplies water to more than 20 cities and water agencies, serving more than 2.4 million Orange County residents. Since 1933, District has replenished and maintained the groundwater basin while more than doubling the basin s annual yield. This important source of water provides local groundwater producers with a reliable supply of highquality water. The District s annual expenditure, account of numbers, and name of utility providers for electricity, water, and natural gas are set forth below: Electricity: $10,049,194, 57 accounts, SCE, City of Anaheim, and Constellation Water: $80,978, 15 accounts, Cities of Anaheim, Orange, Fountain Valley, and Huntington Beach Natural Gas; $45,108, 3 accounts, The Gas Company A complete summary of utility accounts that are the subject of this RFP is provided in Attachment A. Scope of Work The scope of work may include, but not limited to:

28 Analyze utility contract services and perform a billing audit based on the following: review the District s utility arrangements/contracts, billed rates and charges and utility service history. The billing reviews should cover the maximum period that refunds can be obtained as allowed by law and regulation. Provide narrative and quantitative reports that indicate work accomplished and results including refunds to be recovered and potential future savings. Identify cost reduction items that result in no refund, but reduce future costs. Any recommendation the selected firm makes is subject to the District s approval and implementation. To measure any future savings for which payments will be made, the existing bill which will be under the new rate or tariff will be recalculated using the old rate or tariff and the and the difference between the bill under the new tariff or rate and the bill recalculated under the old rate or tariff shall be the savings. Assist in obtaining refunds from the provider. Payments will not be made on savings previously documented and recommended by District personnel within the preceding 24 months. Evaluate the cost-effectiveness and practicality of following options for reducing peak demand costs. Provide a clear and concise process that the District can use access the accuracy of future billings. All work is to be completed within 90 calendar days after Respondent is issued a purchase order. The successful firm s compensation shall come from actual savings realized by the District. Proposal Requirements Any firm interested in performing the utility audit/cost reduction services must submit a written Proposal for consideration. Each proposal must meet all criteria set forth in this RFP. Submittal of the proposal is solely at the cost of the proposing vendor and the District is in no way liable or obligates itself for any cost incurred to the proposing vendor in preparing the proposal. Submission of a proposal indicates that you have read and understand the entire RFP, to including all appendices, schedules and addendums (as applicable), and that all concerns regarding the RFP have been satisfied. Questions & Answers: All questions should be in submitted in writing and addressed only to Randy Fick, CFO/Treasurer, either by rfick@ocwd.com or facsimile 714/ The deadline for submission of questions to be answered is January 9, 2015, at 2:00 p.m. Questions will not be answered by telephone communication. Written questions and answers will be provided to all potential proposers. If, after questions are presented and answered, sufficient adjustments or clarifications are identified, the District may issue an addendum to this RFP. Proposal Submission and Deadline: 2

29 One (1) original, three (3) copies, and one (1) electronic version (in PDF or Word format on a CD, DVD, or USB Flash Drive) of the completed proposal must be received at the address listed below no later than 5:00 pm, on January 22. Proposals received after the deadline will not be considered. Faxed or ed proposals will not be accepted. Postmarks will not be accepted in lieu of actual receipt. Submit the original and all copies of the proposal, and the cost sheet or bid in a sealed envelope, container, or package to: Randy Fick, CFO/Treasurer Orange County Water District Ward Street Fountain Valley, CA All materials submitted with the proposal become the property of the District and will not be returned. The proposal will become public record subject to the disclosure provisions of the Public Records Act (Government Code Section 6250 et seq.). Timeline: The RFP schedule/timeline for this project is listed below: RFP mailed on December 18, 2014 Deadline for Proposals January 22, 2015 Tentative Date for Award February 18, 2015 Other Requirements Proposals should include the following: o Cover page including the name of the business/company, address, telephone numbers, fax number, address, website address and Federal Tax ID No., and number of years in business o Statement of experience outlining the proposer s experience and establish their ability to perform the required work to the satisfaction of District by reasons of similar work, strength and stability of business, staffing capability and work load o Any exceptions to District s Professional Services Agreement which is attached o References please provide three references from similar projects including contact name and telephone number o Company s financial capability o Project understanding o Cost sheet setting out any upfront fees, revenue share percentage of actual realized savings, and for future savings the percentage revenue share and payment term period from date of inception to term. o Itemize any direct reimbursable expenses such as transportation costs, incidental charges and any additional expenses that may be required 3

30 o The selected firm will be required to carry $2M in general liability, $1M in automobile liability, $1M in workers compensation, and $1M in professional liability coverage. Selection Process Proposals submitted will be evaluated by the District s staff. Staff will review each proposal for completeness, project approach and understanding, professional qualifications, references and costs of services provided. In addition, a staff evaluation team may conduct interviews, if necessary, to ascertain that the firms understanding of the project and to provide clarification of the proposal. These interviews will provide firms an opportunity to answer any questions the evaluation committee may have on a firm s proposal. Not all firms may be selected to make oral presentations. Based on review of the proposals and interviews, staff will present a recommendation to the OCWD finance committee on February 12, The District s Board of Directors will make a decision based on the finance committee s recommendations. Final selection will be based on the firm s qualifications, experience, and cost. It is anticipated that a firm will be selected at the February 18, 2015 Board Meeting. Following notification of the firm selected, it is expected that an agreement will be executed between both parties for the services described above. Submission of a proposal constitutes acceptance by the firm of the conditions contained in this request for proposals unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the District and the firm selected. The District reserves the right to retain all proposals submitted and use any idea in a proposal regardless of whether that proposal is selected. The District reserves the right to reject any and all proposals. Professional Services Agreement Prior to the commencement of services, the successful Proposer will be required to execute an agreement between itself and District for a term of two years. Any exceptions related to the standard contract language shall be documented in your proposal. The successful Proposer will not be permitted to levy any service or other charges against District, other than those listed in its proposal and included in the Agreement, without being previously negotiated with District. District Contact Person The contact person for this project is Randy Fick who can be reached at 714/ or rfick@ocwd.com. 4

31 Attachment A Utility Account Listing Meter No. or Acct No. SCE Ball Road, Anaheim (Burris Pit) S Santa Ana River /8 Euclid ped Adams Ave Ravenwood Ln Pole N Santa Ana River Ward St Spencer PMP Pacific St Pmp Aragon TPP W/S S.A. River n/o Ball Ball Rd Bluebird TPP /8 Ward St PED Patterson Ln River Rd Ellis Ave Ellis TPP Ellis TPP W Alton Ave, Santa Ana KIWI SUB BANK 1& Ward Garfiled Ave Prospect, Orange (SANTPS) Collins, Orange Collins, Orange Collins, Orange W. Struck, Orange N. Main Street, Orange City of Anaheim - Power Miller, Anaheim (Flygt Pumps) N. Tustin N. Miller, Anaheim (Geology) E. Ball Road (GWRS) E. Frontera St., Anaheim (5-Coves Dam) E. Mira Loma, Anaheim (Kraemer/Miller) E. Mira Loma, Anaheim (PDSTL) E. Mira Loma, Anaheim (LASCO)/PDSTL E. Mira Loma, Anaheim (LASCO) waste & swp E. Mira Loma, Anaheim (Ana Irrig) E. Mira Loma, Anaheim (Concession) incl water E. South Street, Anaheim (Burris Irrig) N. Lakeview, Anaheim (Weir 4) N. Lakeview, Anaheim (Weir 3) E. Lincoln Ave., Anaheim (BCV -5 Coves) E. La Jolla Street, Anaheim (La Jolla) waste 5

32 Attachment A Utility Account Listing E. La Palma Ave., Anaheim (Warner Pump) E. La Palma Ave., Anaheim (Gardner's Shop) E. La Palma Ave., Anaheim E. La Palma Ave., Anaheim (FHQ) waste & st swp E. La Palma Ave., Anaheim (Warner Irrig) E. La Palma Ave., Anaheim (Conrock) st swp E. La Palma Ave., Anaheim (Lil Warner) E. La Palma, Ave. Anaheim (FRLAB) E. La Palma Ave., Anaheim (IHG Dam) Constellation New Energy Inc - Direct Access Garfiled Ave, Fountain Valley W Alton Ave, Santa Ana City of Huntington Beach - Water Paterson, H.B. City of Fountain Valley - Water Ward St, F.V Ward St, F.V Ward St, F.V Ward St, F.V Ward St, F.V. City of Orange - Water / N. Main St., Orange / N Prospect St, Orange / E Bond Ave LDS, Orange City of Anaheim - Water E Mirloma Ave E La Jolla St E South St E La Palma Ave E La Palma Ave S Auto Center Dr The Gas Company Ward St, Fountain Valley Ellis Ave, Fountain Valley Ellis Ave, Fountain Valley 6

33 5

34 AGENDA ITEM SUBMITTAL Meeting Date: December 11, 2014 To: Administration/Finance Issues Cte Board of Directors From: Mike Markus Staff Contact: R. Fick Budgeted: N/A Budgeted Amount: N/A Cost Estimate: N/A Funding Source: N/A Program/Line Item No.: N/A General Counsel Approval: N/A Engineers/Feasibility Report: N/A CEQA Compliance: N/A Subject: AVAILABILITY OF COMMERCIAL PAPER FOR REPLACEMENT & REFURBISHMENT (R&R) PROJECTS SUMMARY The District has two large dollar Refurbishment & Replacement (R&R) projects - Burris Basin Pump Station and Imperial Head Gates & Weir Pond Rehab Project. These two projects will cost about $30 million. In order to balance cash flows for these two R&R projects, staff may need to issue Commercial Paper. RECOMMENDATION Agendize for the December 17 Board meeting: Authorize CFO/Treasurer to issue commercial paper as needed to balance cash flows for two R&R projects Burris Basin Pump Station and Imperial Head Gates & Weir Pond Rehab Project.. DISCUSSION Staff may need to issue Commercial Paper to balance cash receipts with cash payments while paying for two large R&R projects - Burris Basin Pump Station and Imperial Head Gates & Weir Pond Rehab Project. The Burris Basin Pump Station is estimated to cost $23.4 million and Imperial Head Gates & Weir Pond Rehab Project is estimated to cost $6.6 million. The Board must authorize staff to issue the Commercial Paper. Should staff need to issue Commercial Paper to balance cash flow, the Commercial Paper will be paid off as R&R fund investments are called or mature. Any principal and interest due on the possible issuance of commercial paper due to the two R&R projects will be paid out of the R&R fund. PREVIOUS BOARD ACTIONS: None

35 6

36 AGENDA ITEM SUBMITTAL Meeting Date: December 11,2014 Budgeted: Yes Budgeted Amount: $6,500 To: Administration and Finance Issues Cte Cost Estimate: $13,922 Board of Directors Funding Source: R&R Program/ Line Item No. R14020 From: Mike Markus General Counsel Approval: N/A Engineers/Feasibility Report: N/A Staff Contact: S. Nygren CEQA Compliance: N/A Subject: AMENDMENT TO R&R PROJECT R14020 WITH TRI-TEK BURGLAR ALARM COMPANY TO UPGRADE EXISTING SECURITY SYSTEM AT PRADO FIELD OFFICE Tri-Tek Burglar Company is a security system provider for the OCWD and provided a quote in December of 2013 to upgrade the security system at Prado to add video surveillance for areas not currently covered in the equipment yard. This upgrade was approved as Project R14020 in the amount of $6,500. Subsequent to that quote, the Prado equipment yard has been expanded and it has now been determined that the scope of the original equipment quote will not provide adequate security surveillance. Additions to the existing project are needed to provide additional equipment and labor to install the necessary equipment. Based on a revised quote which would add one security camera, upgrade the security DVR system, and install necessary wiring, an increase to Project R14020 is requested. RECOMMENDATION Agendize for December 17 Board meeting: Authorize issuance of Amendment to Project R14020 with Tri-Tek Burglar Alarm Company in the amount of $13,922 for additional security cameras. BACKGROUND/ANALYSIS Recent expansion of the equipment yard at the Prado Field Office to provide covered parking for additional heavy equipment positioned at Prado revealed a gap in video surveillance coverage by the existing security system cameras. The back gate and western fence boundary are blocked from view by existing cameras because of the location of storage sheds. To view these two areas, cameras must be mounted on adjacent awning structures. The added expense incurred is one additional digital camera above the R14020 funding, trenching and wiring for the additional camera, and an upgraded DVR to process and store content. The new DVR will interface with the existing analog cameras. PRIOR RELEVANT BOARD ACTION(S) Approval of Project R14020 with Tri-Tek Burglar Alarm Company to upgrade existing security system at Prado Field Office.