AGENDA ADMINISTRATION/FINANCE ISSUES COMMITTEE MEETING WITH BOARD OF DIRECTORS* ORANGE COUNTY WATER DISTRICT 18700 Ward Street, Fountain Valley, CA 92708 Thursday, April 10, 2014, 8 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 to allow all Board members to hear the presentations and participate in the discussions. OCWD Directors receive no additional compensation or stipend as a result of simultaneously convening this Board of Directors meeting. Items recommended for approval at this meeting will be placed on the Consent Calendar at the April 16, 2014 Board meeting. ROLL CALL VISITOR PARTICIPATION Members of the audience wishing to address the Committee/Board on items of interest to the public are requested to identify themselves. If the matter they wish to comment on is an Agenda item, the visitor will be called on when that matter comes up for consideration. ITEMS RECEIVED TOO LATE TO BE AGENDIZED RECOMMENDATION: Determine need to take action on item(s) which arose subsequent to posting of the Agenda (Adoption of this recommendation requires two-thirds vote of the Board/Committee, or, if less than two-thirds of the members are present, a unanimous vote) CONSENT CALENDAR (ITEMS NO. 1 – 7) All matters on the Consent Calendar are to be approved by one motion unless Director or staff request separate action on a specific item. 1. MINUTES OF ADMINISTRATION/FINANCE ISSUES COMMITTEE MEETING HELD MARCH 13, 2014 RECOMMENDATION: Approve minutes as presented 2. MONTHLY CASH CONTROL REPORT RECOMMENDATION: Agendize for April 16 Board meeting: Receive and file Summary Cash and Cash Equivalents Control Report dated March 31, 2014. 3. MONTHLY CASH DISBURSEMENTS DETAIL REPORT RECOMMENDATION: Agendize for April 16 Board meeting: Receive and file the Cash Disbursements Detail Report for the period of February 27 through March 26, 2014 4. REQUEST FOR QUOTATIONS FOR OUTSIDE PRINTING/COPYING SERVICES RECOMMENDATION: Agendize for April 16 Board meeting: Authorize issuance of Request for Quotation for outside printing and copying services
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WITH BOARD OF DIRECTORS* ORANGE COUNTY WATER DISTRICT
18700 Ward Street, Fountain Valley, CA 92708 Thursday, April 10, 2014, 8 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 to allow all Board members to hear the presentations and participate in the discussions. OCWD Directors receive no additional compensation or stipend as a result of simultaneously convening this Board of Directors meeting. Items recommended for approval at this meeting will be placed on the Consent Calendar at the April 16, 2014 Board meeting.
ROLL CALL VISITOR PARTICIPATION Members of the audience wishing to address the Committee/Board on items of interest to the public are
requested to identify themselves. If the matter they wish to comment on is an Agenda item, the visitor will be called on when that matter comes up for consideration.
ITEMS RECEIVED TOO LATE TO BE AGENDIZED
RECOMMENDATION: Determine need to take action on item(s) which arose subsequent to
posting of the Agenda (Adoption of this recommendation requires two-thirds vote of the Board/Committee, or, if less than two-thirds of the members are present, a unanimous vote)
CONSENT CALENDAR (ITEMS NO. 1 – 7) All matters on the Consent Calendar are to be approved by one motion unless Director or staff request
separate action on a specific item.
1. MINUTES OF ADMINISTRATION/FINANCE ISSUES COMMITTEE MEETING HELD MARCH 13, 2014
RECOMMENDATION: Approve minutes as presented
2. MONTHLY CASH CONTROL REPORT RECOMMENDATION: Agendize for April 16 Board meeting: Receive and file Summary
Cash and Cash Equivalents Control Report dated March 31, 2014.
3. MONTHLY CASH DISBURSEMENTS DETAIL REPORT RECOMMENDATION: Agendize for April 16 Board meeting: Receive and file the Cash
Disbursements Detail Report for the period of February 27 through March 26, 2014
4. REQUEST FOR QUOTATIONS FOR OUTSIDE PRINTING/COPYING SERVICES RECOMMENDATION: Agendize for April 16 Board meeting: Authorize issuance of Request
for Quotation for outside printing and copying services
2
5. RUTAN AND TUCKER LEGAL EXPENSES BUDGET RECOMMENDATION: Agendize for April 16 Board meeting: Authorize increasing the
Rutan and Tucker general fund legal expense budget from $350,000 to $500,000
6. AGREEMENT TO NATE SCHEEVEL FOR CONSULTING SERVICES RECOMMENDATION: Agendize for April 16 Board meeting: Authorize issuance of an
Agreement to former employee Nate Scheevel (Scheevel Engineering, LLC) for an amount not to exceed $50,000 for engineering consulting services
7. AMENDED AND RESTATED MONEY PURCHASE RETIREMENT PLAN DOCUMENT RECOMMENDATION: Agendize for April 16 Board meeting:
1. Adopt Restatement of the Money Purchase Plan Document effective January 1, 2014; and
2. Adopt amended and restated Amendment Number Three to Money Purchase Plan documents
END OF CONSENT CALENDAR
MATTERS FOR CONSIDERATION 8. INVESTMENT PORTFOLIO HOLDINGS REPORT
RECOMMENDATION: Agendize for April 16 Board meeting: Receive and file Investment Portfolio Holdings Report dated March 31, 2014
9. PROPOSED FY 2014-15 GENERAL FUND BUDGET RECOMMENDATION: Agendize for April 16 Board meeting: 1. Provide comments and directions to staff; and 2. Schedule consideration to adopt the FY 2014-15 budget for April
16, 2014 INFORMATIONAL ITEMS 10. EMPLOYMENT STATUS REPORT 11. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING
3
DIRECTORS' ANNOUNCEMENTS/REPORTS
GENERAL MANAGER’S ANNOUNCEMENTS/REPORTS ADJOURNMENT
In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the Orange County Water District, 18700 Ward Street, Fountain Valley, CA 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: www.ocwd.com
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) 378-3233, by email at [email protected] by fax at (714) 378-3373. 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 www.ocwd.com. 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, 18700 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.
4
ADMINISTRATION AND FINANCE ISSUES COMMITTEE MEMBERS
Kathryn Barr - 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
1
MINUTES OF BOARD OF DIRECTORS MEETING ADMINISTRATION AND FINANCE ISSUES COMMITTEE
ORANGE COUNTY WATER DISTRICT March 13, 2014 @ 8:00 a.m.
The Administration and Finance Issues Committee meeting was called to order by Director Kathryn Barr in the Conference Room C2 in Fountain Valley, CA. The Assistant District Secretary reported quorum of the Committee.
CONSENT CALENDAR Director Anthony requested that Item No. 4, Purchase Order to Quinn Company for Replacement Engines for Caterpillar Scraper RT-14 be removed from the Consent Calendar. The remainder of the Consent Calendar was then approved upon motion by Director Anthony, seconded by Director Green and carried [5-0] as follows. [Yes - Barr, Flory, Anthony, Green, Dewane/ No-0] 1. Minutes of Previous Meeting The Minutes of the Administration and Finance Issues Committee meeting held February 13, 2014 were approved as presented. 2. Monthly Cash Control Report Recommended for approval at March 19 Board meeting: Receive and file Summary Cash and Cash Equivalents Control Report dated February 28, 2014. 3. Monthly Cash Disbursements Detail Report Recommended for approval at March 19 Board meeting: Receive and file the Cash Disbursements Detail Report for the period of January 30, 2014 through February 26, 2014. 4. Purchase Order to Quinn Company for Replacement Engines for Caterpillar Scraper RT-14 This item was removed from the Consent Calendar for further discussion. 5. Audit of Santa Ana Watershed Association Trust Fund Recommended for approval at March 19 Board meeting: 1) Authorize the General Manager to execute the Agreed-Upon Procedures letter from Ahern-Adcock-Devlin dated January 29, 2014;
Committee Members Kathryn Barr, Chair Roger Yoh (arrived 8:20 a.m.) Steve Sheldon (arrived 8:10 a.m.) Harry Sidhu (arrived 8:20 a.m.) Jan Flory Alternates Vincent Sarmiento (arrived 8:05 a.m.) Philip Anthony Denis Bilodeau (not present) Cathy Green Shawn Dewane
OCWD Staff Mike Markus, General Manager Joel Kuperberg, General Counsel Judy-Rae Karlsen, Assistant District Secretary Dan Cohen, Bruce Dosier, Bill Dunivin, Randy Fick, Kevin Greene, Bonnie Howard, Bill Hunt, Chris Olsen, John Kennedy, Vishav Sharma, Esmer Uribe Others Paul Schoenberger– Mesa Water District
3/13/2014
2
and 2) Authorize payment of the District’s share of the audit of the Santa Ana Watershed Association (SAWA)Trust Fund for an amount not to exceed $11,100. ITEM REMOVED FROM THE CONSENT CALENDAR Director Sarmiento arrived at 8:05 a.m. and Director Sheldon arrived at 8:10 a.m. during the discussion on the following matter. 4. Purchase Order to Quinn Company for Replacement Engines for Caterpillar Scraper RT-14 Director Anthony requested additional information on the replacement of engines on District equipment. Executive Director of Operations Bill Hunt reported the RT-14’s auger scraper engines were scheduled for replacement and part of the District’s multi-year compliance plan with California Air Resources Board (CARB) regulations. The Committee then took the following action. Upon motion by Director Anthony, seconded by Director Flory and carried [5-0], the Committee recommended that the Board at its March 19 Board meeting: Authorize issuance of Purchase Order to Quinn Company in the amount of $225,157 for the replacement of RT-14’s Tier-0 auger scraper engines with Tier-3 replacements for compliance with State regulations. [Yes-Barr, Sheldon, Flory, Sarmiento, Anthony/ No-0] MATTERS FOR CONSIDERATION 6. Investment Portfolio Holdings Report District Treasurer/Chief Financial Officer Randy Fick reviewed the District’s Portfolio Holdings Report dated February 28, 2014 and stated the total rate of return on investments is 0.827%. He reviewed current market trends and advised the District’s investments are in compliance with the District’s Statement of Investment Policy. The Committee then took the following action. Upon motion by Director Flory, seconded by Director Sidhu and carried [5-0], the Committee recommended that the Board at its March 19 Board meeting: Receive and file Investment Portfolio Holdings Report dated February 28, 2014. [Yes-Barr, Sheldon, Flory, Sarmiento, Anthony/No-0] Directors Yoh and Sidhu arrived at 8:20 during the discussion on the following matter 7. Proposed FY 2014-15 Budget Replacement & Refurbishment Fund Expense Review Mr. Fick provided a comprehensive overview of the proposed Fiscal Year 2014-15 Replacement and Refurbishment Budget and reported the District anticipates $15.0 million in expenditures. Staff presented the following major expense items that will be included in the proposed Replacement & Refurbishment fund budget.
Item # R&R Item Expense
27 Replace Burris pump station $ 5,068,171
28 Transfer structure between Blue Diamond & Bond Basins $ 2,012,792
2 Reverse Osmosis membranes in RO subunits A01 and A03 $ 1,374,000
37 Replacement of three monitoring wells $ 845,000
12 D7E Bulldozer replacement $ 700,000
Following the staff presentations, the Committee reviewed and discussed the budgeted items.
3/13/2014
3
DETERMINATION OF ADDITIONAL ITEMS TO BE PLACED ON CONSENT CALENDAR FOR MARCH 19 BOARD MEETING The Committee recommended that Items No. 2-6 be placed on the Consent Calendar for the March19 Board meeting. ADJOURNMENT There being no further business, the meeting was adjourned at 8:26 a.m. _________________________ Kathryn Barr, Chair
2
AGENDA ITEM SUBMITTAL Meeting Date: April 10, 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 Report: N/A Staff Contact: R. Fick/V. Sharma 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 April 16 Board meeting: Receive and file Summary Cash and Cash Equivalents Control Report dated March 31, 2014. PRIOR RELEVANT BOARD ACTION(S) Monthly
ORANGE COUNTY WATER DISTRICT SUMMARY CASH AND CASH EQUIVALENTS CONTROL REPORT
Note: Total cash and cash equivalent includes custodial funds ofNWRI worth $267,154.
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
38,322,425 216,638,643
ORANGE COUNTY WATER DISTRICT
RESERVES
For the Year to Date Period Ended March 31, 2014
(Unaudited/Preliminary)
Beginning Ending Balance Reserve Year Balance As of 3/31/2014 Policy
Operating Reserves R & R Fund 67,034,849 70,715,579 66,100,000 (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 21,854,419 18,170,047 41,625,000 (4) SRF Loan Reserve 1,705,375 4,330,375 9,200,000 (5) Operating Reserve (15% of Op. Budget) 16,800,988 17,994,103 17,994,103 (6) Operating Fund 27,890,410 60,106,113 42,235,836 (7)
Total -Operating Reserves 142,286,041 178,316,217 184,154,939
Note: Sources and Uses of district funds refkct both operating and capital funds. Operating funds consist of annual operating revenues or cash resenes.
$90,000,000 $8.(,082,803
~ $80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
Orange County Water District Sources of Funds
for the Year to Date Period Ended March 31, 2014
$5,992,549
$1,611,800 $125,778
$10,133,769
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Orange County Water District Disbursement of Funds
for the Year to Date Period Ended March 31,2014 $50,000,000 ,--~~-·
AGENDA ITEM SUBMITTAL Meeting Date: April 10, 2014 Budgeted: Yes Budgeted Amount: N/A To: Administration/Finance Issues Cte. Cost Estimate: N/A Board of Directors Funding Source: All Program/Line Item No. N/A From: Mike Markus General Counsel Approval: N/A Engineers/Feasibility Report: N/A Staff Contact: R. Fick / K. Greene CEQA Compliance: N/A Subject: MONTHLY CASH DISBURSEMENTS DETAIL REPORT SUMMARY The Committee requested that staff provide information related to the District’s cash disbursements and that it be included for review at Administration / Finance Issues Committee meetings. Attachment(s): Cash Disbursement Reports for the period February 27 - March 26, 2014 RECOMMENDATION Agendize for the April 16 Board meeting: Receive and file the Cash Disbursements Detail Report for the period of February 27 through March 26, 2014 BACKGROUND / ANALYSIS At the request of the Committee, the Check Register report which is provided separately to all Directors will now be included in detail for review at Administration/Finance Issues Committee meetings. Checks numbered with a series beginning with a 4 represent normal automated system vendor check payments while checks numbered with a series beginning with a 9 ( the last pages of the report ) are manual checks or wire transfer disbursements. PRIOR RELEVANT BOARD ACTION(S) Monthly.
Check No. Vendor Name Invoice # Invoice Amount Check Amount
Accounts Payable Cash Disbursements Presented for Board Ratification and/or Approval
$147,883.05 Inv# MARCH 25,2014 OCWD 2005A SWAP PYMT.CITIBANK NA NEW YORK, ABA 975408 03/25/2014
Total for Check: $147,883.05 975408 $1,847,190.35
$2,036,207.52 3/27/2014Run Date:
4
AGENDA ITEM SUBMITTAL
Meeting Date: April 10, 2014 Budgeted: Yes Budget Amount: $27,000 To: Administration/Finance Issues Cte. Cost Estimate: $27,000 Board of Directors Funding Source: General Fund Program/Line Item No.: Various From: Mike Markus General Counsel Approval: N/A Engineers/Feasibility Report: N/A Staff Contact: R. Fick/B. Howard CEQA Compliance: N/A Subject: REQUEST FOR QUOTATIONS FOR OUTSIDE PRINTING AND COPYING SERVICES SUMMARY Staff recommends aggregating the purchase volume of outside printing services currently spread over four to six suppliers through one key supplier(s) to achieve maximum pricing leverage. Attachment(s):
Request for Quotation for Copying Maps, Plans, and Large Documents Request for Quotation for Printing Brochures, Reports, Programs, and Posters Pricing Sheet for Printing and Copying
RECOMMENDATION Agendize for the April 16 Board meeting: Authorize issuance of Request for Quotation for outside printing and copying services. DISCUSSION/ANALYSIS The District has spent around $30,000 - $40,000 annually as detailed in Table 1 on outside printing services that our in-house staff is unable to perform due to equipment or staffing limitations. The District is currently buying similar printing services from four to six different suppliers.
Table 1
Fiscal Year Ending June 30 Annual Spending with Outside Printers 2011 $ 27,382 2012 $ 39,124 2013 $ 31,947
Historical examples of items sent to outside printers include: GWRS brochures, annual Engineers report, Children’s Water Festival programs and maps, Water Summit programs, annual Recharge report, and envelopes and letterhead with multi-colored logo.
Currently, staff obtains quotes from printers on each individual printing job. This is time consuming for staff and the results of the search do not always bring a qualified vendor for that particular service. It would save the District staff time and money to select up to two printing companies: one for duplicating maps and blueprints and one for printing and assembling books, brochures and large reports. The selection of one or two suppliers for printing services would insure the best quality at the most competitive price. The District could be missing a savings opportunity because these purchases are not being consolidated into one buy or supplier that can be leveraged across the entire organization resulting in a lower purchase price. PRIOR RELEVANT BOARD ACTION(S) N/A
Orange County Water District REQUEST FOR QUOTATION 18700 Ward Street April 18, 2014 P. O. Box 8300 Bonnie Howard, Purchasing Fountain Valley, CA 92728-8300 714/378-3258 direct line 714/378-3374-Fax
THIS QUOTATION MUST BE SUBMITTED BY: TO: ATTN: THIS IS NOT AN ORDER Request for Quotation (RFQ) Date Issued: Response Required: April 18, 2014 April 30, 2014 DESCRIPTION OF SERVICES/PRODUCT REQUESTED:
Copying Maps, Plans, Large Documents
Please provide pricing for copying maps, plans and large documents. Indicate cost of full-size drawings and half-size drawings. Samples attached. If you have online ordering, provide a brief description of the software/procedure. Can orders be submitted and tracked online by OCWD? Do you invoice by individual documents/number of copies or do you invoice by linear feet? Please submit the attached Pricing Sheet with your quotation by April 30, 2014, to Bonnie Howard either by email or fax. Questions regarding this RFQ should be directed to Bonnie Howard via Facsimile 714/378-3374 or email [email protected]. Telephone 714/378-3258.
Company Name: ____________________________________ Signed: ___________________________ Dated:_________________
ALL QUOTATIONS MUST BE SUBMITTED BY APRIL 30, 2014
Orange County Water District REQUEST FOR QUOTATION 18700 Ward Street April 18, 2014 P. O. Box 8300 Bonnie Howard, Purchasing Fountain Valley, CA 92728-8300 714/378-3258 direct line 714/378-3374 Fax THIS QUOTATION MUST BE SUBMITTED BY: TO: ATTN: THIS IS NOT AN ORDER Request for Quotation Date Issued: Response Required: April 18, 2014 April 30, 2014 DESCRIPTION OF SERVICES/PRODUCT REQUESTED:
Printing Brochures, Reports, Programs, Posters Please provide prices for printing the following items, samples of which are attached:
1. Poster/Program 2. GWRS Brochure 3. GWRS Sequel Posters 4. CWEF Brochure 5. Water Summit Program 6. Engineer’s Report 7. Recharge Report 8. OCWD Envelopes 9. OCWD Letterhead (with Logo and return address)
If you have online ordering, provide a brief description of the software/procedure. Can orders be submitted and tracked online by OCWD? Please submit the attached Pricing Sheet with your quotation by April 30, 2014, to Bonnie Howard either by email or fax. Questions regarding this RFQ should be directed to Bonnie Howard via facsimile 714/378-3374, or by email [email protected], or call at 714/378-3258.
Company Name: ____________________________________ Signed: ___________________________ Dated:_________________
ALL QUOTATIONS MUST BE SUBMITTED BY April 30, 2014
ORANGE COUNTY WATER DISTRICT 18700 WARD STREET FOUNTAIN VALLEY, CA 92708
Meeting Date: April 10, 2014 Budgeted: Yes Budget Amount: $350,000 To: Administration/Finance Issues Cte. Cost Estimate: $500,000 Board of Directors Funding Source: General Reserves Program/Line Item No.: 1010 From: Mike Markus General Counsel Approval: N/A Engineers/Feasibility Report: N/A Staff Contact: J. Kennedy CEQA Compliance: N/A Subject: RUTAN AND TUCKER LEGAL EXPENSES BUDGET SUMMARY Staff recommends increasing the Rutan and Tucker general fund legal expense budget from $350,000 to $500,000 due to unplanned and significant efforts required of legal counsel during the fiscal year.
RECOMMENDATION Agendize for April 16 Board meeting: Authorize increasing the Rutan and Tucker general fund legal expense budget from $350,000 to $500,000. DISCUSSION/ANALYSIS The District routinely budgets $350,000 for legal expenses with Rutan and Tucker. Due to some significant and unplanned issues during the fiscal year which are listed below, the budget has been exceeded. Staff recommends increasing the budget to $600,000.
Issue Approximate Amounts
The CPV option and lease for Ball Road Basin required a significant effort to draft and negotiate the necessary documents in a short period of time.
$39,000
Finalizing the annexation EIR and agreements occurred. $35,000 Payments to consultants/advocates to assist with legislation to modify the District Act.
$42,000
Unexpected labor issues regarding an election for a “modified agency shop.” $30,000 Significant time has been spent on the North and South Basin lawsuits including research and advising staff and the Board on likely outcomes and options; addressing the MWD indemnity issue, and issues relating to the NCP approach.
$30,000
Total $176,000
PRIOR RELEVANT BOARD ACTION(S) N/A
6
AGENDA ITEM SUBMITTAL
Meeting Date: April 10, 2014 Budgeted: Yes Budget Amount: N/A To: Administration/Finance Issues Cte. Cost Estimate: $50,000 Board of Directors Funding Source: CIP Program/Line Item No.: From: Mike Markus General Counsel Approval: N/A Engineers/Feasibility Report: N/A Staff Contact: J. Kennedy/C. Olsen CEQA Compliance: N/A Subject: AGREEMENT TO SCHEEVEL ENGINEERING, LLC FOR CONSULTING
SERVICES SUMMARY Nate Scheevel has submitted his resignation letter to leave the District effective April 11, 2014. Staff recommends entering into a consulting contract with Mr. Scheevel to assist in the transition of hiring a new engineer to manage District capital projects.
RECOMMENDATION Agendize for April 16 Board meeting: Authorize issuance of an Agreement to former employee Nate Scheevel (Scheevel Engineering, LLC) for an amount not to exceed $50,000 for engineering consulting services. DISCUSSION/ANALYSIS Mr. Scheevel manages large important capital improvement projects for the District that are highly technical, institutionally complicated and/or complex in nature. Perhaps the most important project he manages is the Prado Basin Sediment Demonstration project. The District is losing approximately 370 acre-feet per year of volume behind the dam due to sediment accumulation. Finding viable options to remove the sediment is difficult given Corps of Engineers requirements, environmental restrictions, endangered species, land use and habitat issues behind the dam. Additionally, how sediment removed from the dam could be transported and re-entrained in the Santa Ana River downstream of the dam is an equally challenging issue. Working with the Corps of Engineers, County and other agencies on this project is challenging. It is important to maintain the momentum, relationships and trust that has been developed in processing documents through these agencies. Maintaining a presence with Mr. Scheevel while a new project manager is hired and “brought up to speed” should assist in getting timely approvals for the project. Several other projects that Mr. Scheevel has been managing would also benefit from his continued involvement. His experience with, and detailed knowledge of, several capital improvement projects and replacement and refurbishment projects will allow staff to efficiently implement these projects. Mr. Scheevel’s 10 years of experience with the District (5 years in operations and 5 years in engineering) provides the District with a unique
resource to achieve District objectives. Assigned tasks and deliverables will benefit from his understanding of District policies and procedures and complement the efforts of other District staff. Staff has initiated recruitment of a Principal Engineer to fill this position. Mr. Scheevel has offered to work limited hours for the District as a consultant to assist in this transition at an hourly rate of $110 per hour. PRIOR RELEVANT BOARD ACTION(S) N/A
7
AGENDA ITEM SUBMITTAL
Meeting Date: April 10, 2014 Budgeted: N/A Budgeted Amount: N/A To: Administration/Finance Issues Cte.
Board of Directors Cost Estimate: N/A Funding Source: N/A
Program/ Line Item No. N/A From: Mike Markus General Counsel Approval: Yes Engineers/Feasibility Report: N/A Staff Contact: S. Dosier CEQA Compliance: N/A Subject: AMENDED AND RESTATED MONEY PURCHASE RETIREMENT PLAN
DOCUMENT SUMMARY Every five years the District is required to submit an updated plan document for the District’s Money Purchase 401(a) Retirement Plan to the IRS for review. The updated draft was submitted to the IRS for review and approval. The IRS has completed its review and has provided a favorable letter of determination, with only one additional amendment required which outlines minor plan document language changes that were needed to ensure full compliance of the written document itself. The amendment and final restated and amended plan document are now ready for final adoption by OCWD. Attachment(s): Amendment Number Three Amended Money Purchase Plan Document effective January 1, 2014 ; IRS Favorable Letter of Determination dated February 28, 2014
RECOMMENDATION Agendize for the April 16 Board meeting: 1. Adopt Restatement of the Money Purchase Plan Document effective January 1, 2014; and 2. Adopt amended and restated Amendment Number Three to Money Purchase Plan
documents
BACKGROUND/ANALYSIS Staff worked with our retirement attorneys at Trucker Huss retirement law firm to submit our Money Purchase Retirement Plan to the IRS as part of the IRS required five year submissions process. This process is required every five years to ensure that the plan document includes all required plan provisions that the laws requires due to legislative changes over the years. Periodically there are legislative updates that include requirements to update language to our plan and/or change operational provisions of the plan. Over the past five years we have had two amendments to the plan that the Board has previously adopted. Those amendments have now been incorporated into the plan document itself and submitted to the IRS for review as part of this five year cycle.
The IRS recommended one additional language update to the plan document as part of this review process. This has been outlined in Amendment Number Three. These are minor plan language updates that do not change any operational aspects of the plan; they are more cosmetic in nature and are corrections for language which was required back in 2009. The IRS has reviewed the amendment and has approved it as well as the updated plan document in whole. The IRS provided the District with a favorable determination on the plan with an effective date of February 28, 2014. The amendment as well as the restated plan document must now be adopted within 91 days of the date stated on the Favorable Determination Letter (February 28, 2014). Staff recommends adoption of the amended and restated plan document and amendment number three. PRIOR RELEVANT BOARD ACTION(S)
#1376432
RESTATEMENT OF THE
MONEY PURCHASE PLAN FOR EMPLOYEES OF
ORANGE COUNTY WATER DISTRICT
Restated Effective January 1, 2014
#1376432
TABLE OF CONTENTS
INTRODUCTION ........................................................................................................................... i
1. ELIGIBILITY/PARTICIPATION/SERVICE ..................................................................... 1-a 1.1 EMPLOYEE, ELIGIBILITY ....................................................................................... 1-a 1.2 PARTICIPATION ....................................................................................................... 1-a 1.3 COVERED SERVICE ................................................................................................. 1-b 1.4 LEAVE OF ABSENCE ............................................................................................... 1-b 1.5 CREDITED SERVICE ................................................................................................ 1-c 1.6 BREAK IN SERVICE ................................................................................................. 1-c 1.7 REINSTATEMENT .................................................................................................... 1-c 1.8 ANNIVERSARY DATE ............................................................................................. 1-d 1.9 PLAN YEAR ............................................................................................................... 1-d
2. EMPLOYER AND PARTICIPANT CONTRIBUTIONS .................................................. 2-a 2.1 CONTRIBUTIONS ..................................................................................................... 2-a 2.2 OPTIONAL PARTICIPANT CONTRIBUTIONS ..................................................... 2-b 2.3 RIGHT OF PARTICIPANT TO CHANGE RATE OF CONTRIBUTION OR TO
DISCONTINUE CONTRIBUTION ............................................................................ 2-b 2.4 WITHDRAWAL OF PARTICIPANT’S OPTIONAL CONTRIBUTIONS ............... 2-b 2.5 MAXIMUM ADDITIONS .......................................................................................... 2-c 2.6 MAXIMUM COMPENSATION .................................................................................. 2-f 2.7 ROLLOVER CONTRIBUTIONS ................................................................................ 2-f
3. ACCOUNTING ................................................................................................................... 3-a 3.1 PARTICIPANT’S ACCOUNTS ................................................................................. 3-a 3.2 VALUATION OF ACCOUNTS ................................................................................. 3-a 3.3 CREDITING OF EMPLOYER CONTRIBUTIONS .................................................. 3-c 3.4 CREDITING OF THE PARTICIPANT’S CONTRIBUTIONS ................................. 3-c 3.5 CREDIT OF VESTED TERMINATED ACCOUNTS ............................................... 3-c 3.6 ANNUAL AUDIT ....................................................................................................... 3-c 3.7 PARTICIPANT DIRECTED INVESTMENTS - EFFECTIVE NOVEMBER 15,
4. BENEFITS ........................................................................................................................... 4-a 4.1 RETIREMENT OR DISABILITY .............................................................................. 4-a 4.2 DEATH ........................................................................................................................ 4-a 4.3 TERMINATION FOR OTHER REASONS ................................................................ 4-a 4.4 PARTICIPANT LOANS ............................................................................................. 4-c 4.5 ALTERNATE PAYEE ................................................................................................ 4-c
5. PAYMENT OF BENEFITS ................................................................................................ 5-a 5.1 PAYMENT OF BENEFITS ........................................................................................ 5-a 5.2 TRANSFER IN LIEU OF PAYMENT OF BENEFITS .............................................. 5-b 5.3 SUSPENSION OF BENEFITS UPON REHIRE ........................................................ 5-c
6. MISCELLANEOUS PROVISIONS REGARDING PARTICIPANTS .............................. 6-a 6.1 PARTICIPANTS TO FURNISH REQUIRED INFORMATION ............................... 6-a 6.2 BENEFICIARIES ........................................................................................................ 6-a 6.3 PARTICIPANTS’ RIGHTS IN TRUST FUND .......................................................... 6-b 6.4 BENEFITS NOT ASSIGNABLE ................................................................................ 6-b 6.5 BENEFITS PAYABLE TO MINORS AND INCOMPETENTS ................................ 6-c 6.6 CONDITIONS OF EMPLOYMENT NOT AFFECTED BY PLAN .......................... 6-d 6.7 ABANDONMENT OF BENEFITS............................................................................. 6-d
7. MISCELLANEOUS PROVISIONS REGARDING THE EMPLOYER ............................ 7-a 7.1 CONTRIBUTIONS ..................................................................................................... 7-a 7.2 EMPLOYER’S CONTRIBUTIONS IRREVOCABLE .............................................. 7-a 7.3 AMENDMENT OF PLAN .......................................................................................... 7-a 7.4 TERMINATION OF PLAN ........................................................................................ 7-b 7.5 EXPENSES OF ADMINISTRATION ........................................................................ 7-b
8. ADMINISTRATION ........................................................................................................... 8-a 8.1 ADMINISTRATION BY RETIREMENT COMMITTEE ......................................... 8-a 8.2 OFFICERS AND EMPLOYEES OF RETIREMENT COMMITTEE ........................ 8-a 8.3 ACTION BY RETIREMENT COMMITTEE ............................................................. 8-a 8.4 RULES AND REGULATIONS OF RETIREMENT COMMITTEE ......................... 8-b 8.5 POWERS OF RETIREMENT COMMITTEE ............................................................ 8-b 8.6 LIABILITY OF RETIREMENT COMMITTEE ......................................................... 8-b 8.7 APPLICABLE LAW ................................................................................................... 8-c
9. TRUST FUND AND TRUSTEE ......................................................................................... 9-a 9.1 TRUSTEE .................................................................................................................... 9-a 9.2 PURPOSE OF TRUST FUND .................................................................................... 9-a 9.3 BENEFITS SUPPORTED ONLY BY TRUST FUND ............................................... 9-a 9.4 TRUST FUND APPLICABLE ONLY TO PAYMENT OF BENEFITS ................... 9-a 9.5 TERMINATION OF PLAN AND DISTRIBUTION OF TRUST FUND .................. 9-b 9.6 BENEFITS 100% VESTED IF PLAN IS TERMINATED OR CONTRIBUTIONS
COMPLETELY DISCONTINUED ............................................................................ 9-b SUPPLEMENTS TO RETIREMENT PLAN
Supplement Effective October 1, 1978 – Connecticut General Life Insurance Co. GR-1395 Plan ............................................................................. S-1 Supplement Effective June 5, 1991 – Participant Loan Procedures ...................................................................................................................... S-3
i #1376432
MONEY PURCHASE PLAN FOR EMPLOYEES OF
ORANGE COUNTY WATER DISTRICT
As Amended and Restated January 1, 2014
INTRODUCTION
A pension plan for the Employees of Orange County Water District was adopted by Orange
County Water District (the “Employer”) effective January 1, 1964. As set forth herein, this plan
contains all amendments effective through January 1, 2014 and is referred to as the Money
Purchase Plan for Employees of Orange County Water District (the “Plan”).
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1. ELIGIBILITY/PARTICIPATION/SERVICE
1.1 EMPLOYEE, ELIGIBILITY
The word “employee” as used herein means any employee or officer, including members of the
board of directors of the Employer in the service of the Employer. Any such employee is
eligible to participate except an employee for whom contributions are made to any other pension
or retirement benefit plan for which pension benefits have been a subject in union or group
negotiations or any part-time or temporary employee.
1.2 PARTICIPATION
Each eligible employee who was in the service of the Employer on September 30, 1978 shall
become a participant hereunder as of October 1, 1978.
Effective October 1, 1978 an eligible new employee shall become a participant in the first layer
of contribution as of the day on which the participant is hired.
Effective October 1, 1978 each eligible employee shall become a participant in the second layer
of contribution as of the first day of the month coincident with or next following the completion
of twelve (12) months of covered service. For the purpose of participation, one month of
covered service is any calendar month during which an employee has one or more covered hours
of service.
Any employee who is absent from the active service of the Employer on the date that the
employee is entitled to participate in the Plan by reason of leave of absence granted by the
Employer or by reason of compulsory military service, will become a participant hereunder as of
the date of the employee’s return to active employment with the Employer.
Any former employee who is subsequently rehired will become a participant in both layers of
contribution starting at such rehire date if the employee’s previous employment entitled the
employee to participation. Any other rehire will have such previous employment time credited
for participation.
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1.3 COVERED SERVICE
Covered service is defined as service for which an employee receives compensation from the
Employer, either directly or indirectly, and irrespective of whether or not such compensation is
for the performance of duties.
An employee shall be considered to have one-hundred and ninety (190) covered hours of service
for each calendar month during which the employee has covered service.
An employee who is on a leave of absence shall not be deemed to have covered hours of service
during such absence, unless regular compensation was paid by the Employer during such
absence.
1.4 LEAVE OF ABSENCE
Absence from the active service of the Employer by reason of leave of absence granted by the
Employer because of illness, military service, or for any other reason, will not terminate an
employee’s service provided the employee returns to the active employment of the Employer
prior to the expiration of the employee’s leave or, if not specified therein, within the period of
time which accords with the Employer’s policy with respect to permitted absences. If the
employee does not return to the active employment of the Employer prior to the expiration of the
employee’s leave of absence as above defined, the employee’s service will be considered
terminated as of the date on which the employee’s leave began.
Absence from the active service of the Employer because of compulsory engagement in military
service will be considered a leave of absence granted by the Employer and will not terminate the
service of an employee if the employee returns to the active employment of the Employer within
the period of time during which the employee has re-employment rights under any applicable
federal laws or within six (6) months from, and after, discharge or separation from such
compulsory engagement if no federal law is applicable, and the first two (2) years of such
absence after January 1, 1964 shall be deemed to be service for the purpose of the Plan. All
employees in similar situations shall be treated in a similar manner with regard to leaves of
absence.
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1.5 CREDITED SERVICE
The credited service of each employee or participant (used for the purpose of computing vesting)
will be the total period of covered service as defined in Section 1.3 hereof, computed in
completed years and Plan Years, from the initial date of employment until normal retirement
date or, if earlier, date of actual retirement or termination of employment, except as provided in
Section 1.1 and the following paragraph:
A. Credited Service Prior to October 1, 1978:
An employee’s credited service prior to October 1, 1978 will be equal to the total
period of covered service from the initial date of employment to October 1, 1978
calculated to completed years (any period of twelve (12) months of covered
service, not necessarily consecutive months, equals one year of credited service).
B. Credited Service After October 1, 1978:
An employee will accrue one year of credited service for each Plan Year,
commencing with the Plan Year beginning July 1, 1978, in which there has been
one thousand (1,000) or more covered hours of service.
Notwithstanding any provision of this Plan to the contrary, contributions, benefits and service
credit with respect to qualified military service will be provided in accordance with Section
414(u) of the Internal Revenue Code (the “Code).
1.6 BREAK IN SERVICE
A terminated participant who is subsequently rehired shall be deemed to have a one-year break
in service for any Plan Year in which the participant fails to have five hundred (500) hours of
covered service.
1.7 REINSTATEMENT
A terminated participant who returns to employment after a break in service shall be reinstated
as a participant as of the date of re-employment in accordance with Section 1.2.
Any benefits that may have been forfeited at the time of the participant’s termination shall be
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reinstated after a break in service in accordance with the following:
A. A participant who is rehired prior to a one-year break in service shall have all
forfeited benefits reinstated to his Employer’s contribution accounts as of the date of
rehire.
B. A participant who had received a distribution of the vested portion of his
Employer’s contribution accounts after termination and who is rehired prior to a one-year
break in service shall have the forfeited amounts reinstated to his Employer’s
contribution accounts as of the date on which the participant repays the entire amount of
the distribution, provided the repayment occurs within two (2) years after rehire.
C. A terminated participant who is rehired after a one-year or longer break in
service shall not have forfeited benefits reinstated.
Notwithstanding any provision of this Plan to the contrary, contributions, benefits and service
credit with respect to qualified military service will be provided in accordance with Section
414(u) of the Code.
1.8 ANNIVERSARY DATE
The anniversary date of the Plan shall be January 1.
1.9 PLAN YEAR
On and after January 1, 1988, each twelve (12) month period ending on December 31 will be a
“Plan Year.” The period from July 1, 1987 to December 31, 1987 is a short Plan Year. Prior to
July 1, 1987, each twelve month period ending on June 30 was a Plan Year. The limitations of
Section 415 of the Code must be met during both the short old Plan Year and the new Plan Year.
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2. EMPLOYER AND PARTICIPANT CONTRIBUTIONS
2.1 CONTRIBUTIONS
Subject to the right reserved by the Employer to modify, amend or terminate the Plan as
provided in Section 7 hereof, the following layers of contribution will be made:
A. First Layer:
Effective January 1, 1991, each employee is to contribute monthly to his
mandatory contribution account, by payroll deduction, an amount equal to the
then current Social Security contribution requirement. The Employer is to
contribute into the Employer’s First Layer Contribution Account an amount equal
to the then current Social Security requirement for Employer contribution. In
addition, the Employer may elect in any year to contribute any portion or all of
the participant’s first layer contribution and the participant’s first layer
contribution shall be reduced by the amount so contributed by the Employer. If
the Employer so elects to contribute a portion or all of the participant’s mandatory
contribution such contribution shall be credited to the participant’s mandatory
contribution account. Effective April 1, 1996, any participant mandatory
contributions made by employees under this Section shall be considered
Employer contributions under Section 414(h)(2) of the Code.
B. Second Layer:
The Employer is to contribute, monthly, into the Employer’s Second Layer
Contribution Account for each participant eligible for the second layer of
contribution as specified in 1.2, an amount equal to six (6) percent of the
employee’s total monthly compensation. The contributions for any month will be
considered as having been made on the last day of the calendar month irrespective
of when it is actually paid over to the trustee. Employer contributions will be
adjusted, in the aggregate, for any credits or debits arising from non-vested
termination.
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2.2 OPTIONAL PARTICIPANT CONTRIBUTIONS
Subject to such rules of uniform application as the committee may adopt, each participant may
elect to contribute to his voluntary contribution account an amount not less than two (2) percent
of the basic compensation received by the participant while a participant nor more than the
maximum amount under Section 2.5, including participation in the previous plans. The
contributions of the participant shall be by payroll deduction or as otherwise provided by the
committee, which the employee shall authorize the Employer to make on written authorization
forms approved and designated by, and filed with, the committee. The authorization to make the
contributions by payroll deduction shall be effective on the first payday following the
committee’s receipt of the payroll deduction authorization.
2.3 RIGHT OF PARTICIPANT TO CHANGE RATE OF CONTRIBUTION OR TO
DISCONTINUE CONTRIBUTION
The right of a participant to elect to contribute to the voluntary contribution account is entirely
optional and the participant may accordingly change the rate of contribution to the Plan at any
time between the minimum and maximum rates specified in Section 2.2 above, or the participant
may discontinue contributions to the Plan at any time; any such change of rate or discontinuance
of contributions shall be effective on the first payday after the notice of change is received by the
committee; provided, however, that the committee may adopt uniform rules as to the maximum
number of changes permitted in a given year. The participant desiring to change the rate of
contribution or discontinue contributions to the Plan must notify the committee thereof in writing
on forms approved and designated by it.
2.4 WITHDRAWAL OF PARTICIPANT’S OPTIONAL CONTRIBUTIONS
After a participant has made optional contributions to the Plan for at least one year, the
participant may withdraw all or any part of the optional contributions previously made by the
participant (but not to exceed the amount in the participant’s contribution account at the time of
withdrawal) by filing a written application with the committee; provided that the committee may
adopt uniform rules as to the maximum number of changes permitted in a given year. Such
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withdrawal shall be effective after such application is filed with the committee on a form to be
provided by the committee.
2.5 MAXIMUM ADDITIONS
A. Notwithstanding anything to the contrary contained in this Plan, the total annual
additions allocated to a participant’s accounts for any Plan Year under the provisions of
this Section shall not exceed the lesser of:
1. $40,000 (or as adjusted as of January 1 of each Plan Year pursuant to the
provisions of Section 415(d) of the Code. Such adjusted amount shall apply for
all limitation years ending with or within such Plan Year); or
2. One hundred (100) percent of his compensation paid in such year. For
purposes of determining compensation in this Subsection, “compensation”
includes a participant’s earned income, wages, salaries, commissions, bonuses,
and includes:
a. contributions made by the Employer to a plan of deferred
compensation (within the meaning of Section 457 of the Code),
b. elective contributions made by the Employer on behalf of
employees that are not includible in gross income under Section 125 of the
Code, and excludes other amounts which received special tax benefits.
Compensation for any limitation year is compensation actually paid or includible in gross
income during such year as well as compensation paid by the later of two and a half (2½) months
after an employee’s severance from employment with the Employer or the end of the limitation
year that includes the date of the employee’s severance from employment with the Employer
maintaining the Plan.
B. For the purposes of subparagraph A of this paragraph, the term “annual additions”
shall mean, for any Plan Year, the aggregate of amounts credited to a participant’s
accounts from Employer contributions (which includes any amounts available from
forfeitures occurring under this Plan), plus his employee contributions made to the Plan.
Annual additions also include amounts allocated to an individual medical account, as
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defined in Section 415(1)(1) of the Code, which is part of a defined benefit plan
maintained by the Employer, if any, and amounts derived from contributions paid or
accrued on or after December 31, 1985, which are attributable to post-retirement medical
benefits allocated to the separate account of a “key employee,” as defined in Section
416(I) of the Code, under a welfare benefit fund, as defined in Section 419(e) of the
Code, maintained by the Employer.
C. If the Employer is contributing to another defined contribution plan, as defined in
the Code, for employees of the Employer, some or all of whom may be participants of
this Plan, then any such participant’s annual additions in such other plan shall be
aggregated with such participant’s annual additions derived from this Plan for purposes
of the limitation in subparagraph A of this Section.
D. The rules described in this section (D) are applicable to Plan Years beginning
before July 1, 2007. If the annual additions to a participant’s accounts would exceed the
limitations described in subparagraph A of this Section, the aggregate of the annual
additions to this Plan and the annual addition to any other defined contribution plan
referred to in subparagraph C shall be reduced until the applicable limitation is satisfied,
by reducing the aggregate amount in the following order of priority:
1. Refund of any contributions made by the participant to this Plan which
would be included in the annual additions.
2. Refund of any contributions made by the Employer to any other defined
contribution plan which would be aggregated with the annual additions to this
Plan pursuant to subparagraph C of this Section.
3. Reduction in the participant’s allocation under this Plan for the Plan Year
in which the excess arises. Such reduction shall be treated as a forfeiture and
shall be allocated on the following anniversary date.
E. If, after the application of the restriction at subparagraphs A, B, C and D above,
there should be any Employer contribution and/or forfeiture which is not allocable to
participants’ accounts for the year, such unallocable amount shall be treated as an
advance toward the succeeding year’s Employer contribution.
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F. For purposes of Article 2 of the Plan, the following definitions will apply:
1. “Compensation,” other than for purposes of Article 2.5, means the eligible
employee’s wages, salaries, and other amounts received for personal services
actually rendered in the course of employment with the Employer to the extent the
amounts are includible in gross income. Compensation shall include:
(a) Contributions made by the Employer to a plan of deferred
compensation (within the meaning of Section 457 of the Code).
Additionally, any distributions from a plan of deferred compensation are
not considered compensation for purposes of Section 415 of the Code
regardless of whether such amounts are includible in the gross income of
the employee when distributed,
(b) Elective contributions made by the Employer on behalf of
employees that are not includible in gross income under Section 125 of the
Code, and
(c) Other amounts paid in cash for services rendered and includible in
the gross income of the employee, such as auto allowances.
Compensation shall not include reimbursement or other expense
allowances, non-cash fringe benefits, or moving expenses.
Compensation taken into account for computing benefits will not exceed
the limit set forth in Section 401(a)(17) of the Code, as adjusted for each
Plan Year (based on the limit in effect on the first day of such Plan Year)
to the amount prescribed by the Secretary of the Treasury or his delegate.
“Effective January 1, 2009, and in accordance with Section
414(u)(12)(A)(ii) of the Code and any Treasury Regulations and other
guidance promulgated thereunder, Compensation shall include differential
pay that (1) is made by the Employer to an employee with respect to any
period during which the employee is performing service in the uniformed
2-f #1376432
services while on active duty for a period of more than thirty (30) days
and (2) represents all or a portion of the wages the employee would have
received from the Employer if the employee had remained actively
employed.”
2. “Eligible employee” will mean any employee of the Employer who is
authorized under the terms of the Plan to have employee contributions allocated
to his account for the Plan Year.
3. “Employee contributions” will mean contributions to the Plan made by a
participant during the tax year, including “first layer contributions” as described
in Subsection 2.1-A and “optional participant contributions” described in Section
2.2 of the Plan.
4. “Highly compensated employee” will mean an individual described in
Section 414(q) of the Code.
5. “Matching contribution” will mean any contributions made to a plan
(established under Section 401(a) of the Code) by the Employer during the Plan
Year and allocated to a participant’s employee contributions.
2.6 MAXIMUM COMPENSATION
The maximum amount of annual Compensation that will be taken into account under this Plan
for any purpose for any employee during any Plan Year will be $200,000, or as adjusted from
time to time pursuant to Section 401(a)(17) of the Code.
2.7 ROLLOVER CONTRIBUTIONS
Subject to committee approval, a participant may make a rollover contribution to the Plan which
does not exceed the maximum amount of rollover contribution permitted under Section 402(a)(5)
of the Code. Rollover contributions include direct rollovers from another qualified plan or
conduit individual retirement annuity or arrangement (“IRA”); or an eligible plan under Section
457 (b) of the Code, which is maintained by a state, political subdivision of a state, or any
agency or instrumentality of a state or political subdivision of a state. The committee will
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establish uniform nondiscriminatory procedures for treatment of rollover contributions.
3-a #1376432
3. ACCOUNTING
3.1 PARTICIPANT’S ACCOUNTS
The committee shall establish and maintain for each participant five (5) separate accounts, to be
called “Participant’s Mandatory Contribution Account,” “Participant’s Voluntary Contribution
Account,” “Participant’s Rollover Contribution Account,” “Employer First Layer Contribution
Account” and “Employer Second Layer Contribution Account,” and each such account shall be
credited or debited to the extent required by the following Sections. All entries on such
individual accounts shall be conclusive and binding upon all parties. Monies derived from these
accounts shall be held, administered, invested and disbursed in accordance with the Plan and
trust agreement.
3.2 VALUATION OF ACCOUNTS
A. “Valuation Date” means each business day that both the trustee and the New York
Stock Exchange are open for business. On each Valuation Date, all accounts of each
participant shall be charged or credited as appropriate with the net earnings, gains, losses,
and expenses, as well as any appreciation or depreciation in market value of each
Investment Option using publicly listed fair market values when appropriate. The trustee
shall update the values of the Investment Options of each account based on the units held
by the account in the Investment Option.
B. To the extent that there are trust assets, the value of which is not readily
determinable on an established market, any earnings, gains or losses shall be allocated in
a manner consistent with subparagraph (E) below. In the event such assets are accounted
for as pooled assets, the allocation of earnings, gains and losses shall consider each
participant’s entire account balance and shall be based upon the earnings, gains and
losses of the entire pool of such assets. In the event such assets are accounted for as part
of a participant’s segregated account, the allocation of earnings, gains and losses from
such assets shall be made on a separate and distinct basis.
C. If, with respect to any Plan Year, any account of a participant is credited with an
incorrect amount of contributions or earnings to which such participant is entitled under
3-b #1376432
the Plan, or if an error is made with respect to the investment of the assets of the account,
which error results in an incorrect amount being credited to the account of the participant,
remedial actions may be taken in accordance with this paragraph. In such event, the Plan
may adjust such account balances to the extent necessary to reflect the account balances
which would have existed had no such error been made. Further, the Employer may
make additional contributions to the account of any affected participant to place the
affected account in the position that would have existed if the error had not been made.
D. In determining the fair market value of securities held in the trust fund which are
listed on a registered stock exchange, the Plan administrator shall direct the trustee to
value the same at the prices they were last traded on such exchange, preceding the close
of business on the latest Valuation Date. If such securities were not traded on that
Valuation Date, or if the exchange on which they were traded was not open for business
on that Valuation Date, then the securities shall be valued at the prices at which they
were last traded prior to the latest Valuation Date. Any unlisted security held in the trust
fund shall be valued at its bid price next preceding the close of business on the latest
Valuation Date, which bid price shall be obtained from a registered broker or an
investment banker.
E. Notwithstanding anything herein to the contrary, in the event there are trust
assets, the value of which are not readily determinable on an established market, the
Employer shall have sole responsibility for determining the value of such assets and
neither the trustee nor the custodian shall incur any liability for inaccurate valuations
based on the trustee’s or the custodian’s good faith reliance on valuation information
provided by the Employer or the Employer’s agent. The Employer shall provide the
trustee or the custodian with an annual updated valuation on each anniversary date of all
such trust assets, the value of which is not readily determinable on an established market
and no participant or beneficiary shall have any right to a more current valuation of such
assets, regardless of whether such assets are held in a segregated account or a pooled
account.
3-c #1376432
3.3 CREDITING OF EMPLOYER CONTRIBUTIONS
The Employer Contribution Accounts for each active participant shall be credited with the
Employer’s monthly contributions to such accounts as of the last day of each calendar month
from which the participant is entitled to a contribution.
3.4 CREDITING OF THE PARTICIPANT’S CONTRIBUTIONS
The amount contributed by each participant shall be credited to the appropriate participant’s
contribution account as deposited with the trustee, but in no event later than the last day of the
quarter during which contributions were made.
3.5 CREDIT OF VESTED TERMINATED ACCOUNTS
The account for each vested terminated participant, increased or deceased by the amounts, if any,
as determined in Section 3.2 above, shall be valued in the same manner and at the same time
stated in Section 3.2.
3.6 ANNUAL AUDIT
At least once annually, the Plan shall have an independent audit for the purpose of reviewing the
account balances of each participant to ensure that the individual accounts are being maintained
in accordance with the provisions of the Plan.
3.7 PARTICIPANT DIRECTED INVESTMENTS - EFFECTIVE NOVEMBER 15, 1996
A. Participants may direct the trustee as to the investment of any portion of their
account. Participants may direct their trustee in writing or telephonically to invest their
accounts in specific Investment Options as permitted by the Plan administrator provided
such investments are permitted by the Plan. For purposes hereof, “Investment Options”
means each investment option made available from time to time by the Employer to
participants, in which a participant may elect to invest all or a portion of their accounts.
3-d #1376432
B. The Plan administrator shall establish a procedure, to be applied in a uniform and
nondiscriminatory manner, setting forth the permissible Investment Options under this
Section, how often changes between investments may be made, and any other limitations
that the Plan administrator shall impose on a participant’s rights to direct investments.
4-a #1376432
4. BENEFITS
4.1 RETIREMENT OR DISABILITY
In the event a participant’s employment with the Employer is terminated at or after attaining age
fifty-five (55) (“normal retirement age”), or if employment is terminated at an earlier age
because of disability, the participant shall be entitled to receive the entire amount then in his
participant’s contribution accounts and the Employer contribution accounts, in accordance with
Section 5.1.
Disability is a physical or mental condition which, in the judgment of the Plan committee, based
upon medical reports and other evidence satisfactory to the Plan committee, presumably
permanently prevents an employee from satisfactorily performing the usual duties for the
Employer or the duties of such other position or job which the Employer makes available and for
which such employee is qualified by reason of training, education or experience.
4.2 DEATH
In the event that the termination of employment of a participant is caused by participant’s death,
the entire amount then in is participant’s contribution accounts and his Employer contribution
accounts shall be paid to the participant’s designated beneficiary in accordance with Section 5.1
after receipt by the Plan committee of acceptable proof of death.
“Effective January 1, 2007, if a participant dies on or after January 1, 2007, while performing
qualified military service (as defined in Section 414(u) of the Code), the beneficiaries of that
participant are entitled, to the extent required by Section 401(a)(37) of the Code or any Treasury
Regulations or other guidance promulgated thereunder, to any additional benefits (other than
benefit accruals relating to the period of qualified military service) provided under the Plan as if
the participant had resumed employment on the day immediately before the participant’s death
and then terminated employment on account of death.”
4.3 TERMINATION FOR OTHER REASONS
In the event of the termination of a participant’s service prior to normal retirement age, for any
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reason other than death or disability, the participant will be entitled to the total of the amount
credited to his participant’s contribution accounts plus the vested percentage of the amount
credited to his Employer’s contribution accounts as determined in accordance with the following
tables:
(A) For termination of employment before January 1, 1990:
Years of Credited Service at Termination
Vested Percentage of Balance in Employer’s Contribution Accounts
Less than 4 0 4 40 5 50 6 60 7 70 8 80 9 90
10 or more or age 55, regardless of service
100
(B) For termination of employment after December 31, 1989:
Years of Credited Service at Termination
Vested Percentage of Balance in Employer’s First
Layer Contributions Acct
Vested Percentage of Balance in Employer’s Contribution Accounts
Less than 5 100 0 5 or more or age 55 regardless of service
100 100
Notwithstanding (B) above, the vesting percentage of the Employer’s Second Layer Contribution
Account for a participant who had completed four years of credited service as of December 31,
1989 shall not be less than forty (40) percent.
Upon termination of employment of a participant who was covered under the previous plans, the
amount credited to a participant’s Employer’s contribution account shall include any credits
which may arise under the previous plans because of termination of service.
The vested balance in the account shall be paid in accordance with Section 5.1. The non-vested
portion will be forfeited at the time a participant incurs a one-year break in service.
4-c #1376432
4.4 PARTICIPANT LOANS
Participants are entitled to borrow from their accounts according to the terms and conditions for
loans established by the committee. These terms and conditions are described in Supplement 2
to the Plan. Despite the provisions of this Section 4.4 and the attached Supplement 2, the
committee reserves the right to stop granting loans to participants at any time in the future.
4.5 ALTERNATE PAYEE
A former spouse who has a participant account pursuant to a qualified domestic relations order
within the meaning of the Code, shall be entitled to distribution of benefits in the same manner
as a terminated participant.
5-a #1376432
5. PAYMENT OF BENEFITS
5.1 PAYMENT OF BENEFITS
Unless the participant otherwise elects, and the committee approves, the payment of benefits
under the Plan to the participant, or his beneficiary, shall begin not later than the first day after
the last day of the Plan Year in which the participant terminated his service with the Employer.
In addition, in no event will the entire interest of a participant be distributed, or commence to be
distributed, later than the April 1 following the calendar year in which the participant attains age
seventy and one-half (70½) or the participant retires, whichever is later. If, however, an
employee is a five percent owner, as defined in Section 416(I) of the Code, with respect to the
Plan Year ending in the calendar year in which the employee attains age seventy and one-half
(70½), the employee’s entire interest shall be distributed no later than the April 1 following such
year.
Subject to such limitation, the committee, in its sole discretion, may elect the benefit
commencement date.
Payment may be made, at the election of the participant by any one or more of the following
methods:
A. By payment in single lump-sum.
B. By payment in a series of equal or substantially equal installments and payable at
least annually directly from the trust fund; provided, however, that such periodic
payments are not in excess of the participant’s life expectancy at the time of retirement.
The committee may, at its discretion, authorize withdrawals of any funds they desire to advance
the participant or beneficiary from the terminated individual account prior to the final lump-sum
distribution; provided, however, that the committee may adopt uniform rules as to the maximum
number of withdrawals permitted in a given year. Such prepayment of the lump-sum will be
charged against lump-sum distribution at the time of final distribution.
5-b #1376432
The committee may, at its discretion, on final determination of a participant’s or beneficiary’s
single lump-sum benefit, authorize and direct the trustee to remove such single lump-sum
amount from the accounts of the trustee and deposit such funds in an interest bearing account in
any bank or savings and loan association that is insured by an instrumentality of the United
States Government, limited to a deposit not to exceed the amount of such insurance on the
individual account.
5.2 TRANSFER IN LIEU OF PAYMENT OF BENEFITS
This Section applies to distributions made on or after January 1, 1993. Notwithstanding any
provision of the Plan to the contrary that would otherwise limit a participant’s election under this
Section, a participant may elect, at the time and in the manner prescribed by the Plan
administrator, to have any portion of an eligible rollover distribution paid directly to an eligible
retirement plan specified by the participant in a direct rollover.
Effective January 1, 2008, notwithstanding any provision of the Plan to the contrary, in the case
of a distribution to a non-spouse designated beneficiary who is entitled to receive an eligible
rollover distribution, such non-spouse designated beneficiary may elect to have any portion of an
eligible rollover distribution paid directly to an individual retirement account described in
Section 408(a) of the Code or an individual retirement annuity described in Section 408(b) of the
Code established for the purposes of receiving a distribution on behalf of the non-spouse
designated beneficiary of the participant in accordance with Section 402(c)(11) of the Code.
For purposes of Section 5.2:
A. An “eligible rollover distribution” is any distribution of all or any portion of the
balance to the credit of the participant, except that an eligible rollover distribution does
not include: any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for life or life expectancy of the
participant or the joint lives or joint life expectancies of the participant and the
participant’s designated beneficiary, or for a specified period of ten years or more; any
distribution to the extent such distribution is required under Section 401(a)(9) of the
Code; the portion of any distribution that is not includible in gross income (determined
5-c #1376432
without regard to the exclusion for net unrealized appreciation with respect to employer
securities); and any distribution which is made upon hardship of the employee.
B. An “eligible retirement plan” is an individual retirement account described in
Section 408(a) of the Code, an individual retirement annuity described in Section 408(b)
of the Code, an annuity plan described in Section 403(a) of the Code, an annuity contract
described in Section 403(b) of the Code (effective January 1, 2002), a government plan
described in Section 457 of the Code (effective January 1, 2002), a qualified trust
described in Section 401(a) of the Code, or a Roth IRA (effective January 1, 2008), that
accepts the participant’s eligible rollover distribution. For rollover distributions to non-
spouse designated beneficiaries, an eligible retirement plan shall mean an individual
retirement account described in Section 408(a) of the Code or an individual retirement
annuity described in Section 408(b) of the Code established for the purposes of receiving
a distribution on behalf of the non-spouse designated beneficiary of the Participant in
accordance with Section 402(c)(11) of the Code.
C. A “participant” includes an employee or former employee. In addition, the
employee’s or former employee’s surviving spouse and the employee’s or former
employee’s spouse or former spouse who is the alternate payee under a qualified
domestic relations order, as defined in Section 414(p) of the Code, are participants with
regard to the interest of the spouse or former spouse.
D. A “direct rollover” is a payment by the Plan to the eligible retirement plan
specified by the participant.
5.3 SUSPENSION OF BENEFITS UPON REHIRE
If a participant who terminated employment is rehired when he is receiving a series of payments
under Section 5.1B, he will be notified as soon as practicable after his rehire date that all
payments due after the date he is notified will be suspended. As soon as practicable after notice
is given to the participant, all subsequent payments due the participant will be suspended. The
suspended payments will remain in his accounts, or if transferred pursuant to the last paragraph
of Section 5.1, will be returned to his accounts, and will thereafter be valued in the same manner
and at the same time stated in Section 3.2. The participant will continue to have one hundred
5-d #1376432
(100) vested percentage in the suspended amounts, as adjusted according to Section 3.2. Any
amounts credited to his accounts after the date he is rehired, adjusted according to Section 3.2,
will be vested according to Article 4.
5.4 SMALL ACCOUNT
If the value of a participant’s vested accounts (excluding the Participant Rollover Contribution
Account) is less than or equal to $1,000, a distribution may be made in the form of a single
lump-sum distribution as soon as administratively feasible following retirement, disability, death
or other termination of employment, without the consent of the participant or the participant’s
spouse.
If the value of a participant’s vested accounts (excluding the Participant Rollover Contribution
Account) is over $1,000 but does not exceed $5,000, and the participant does not elect to have
such distribution paid directly to an eligible retirement plan specified by the participant in a
direct rollover according to Section 5.2, or to receive the distribution directly in accordance with
this Section 5.4, then the committee will authorize the trustee, as soon as administratively
feasible following retirement, disability, death or other termination of employment, to pay the
distribution in a direct rollover to an individual retirement account (as defined by Section 408(a)
of the Code) as may be designated by the committee from time to time pursuant to the
requirements of Section 401(a)(31)(B) of the Code.
5.5 2009 REQUIRED MINIMUM DISTRIBUTIONS
Notwithstanding Section 5.1 of the Plan, a participant or beneficiary who would have been
required to receive required minimum distributions for 2009 but for the enactment of Section
401(a)(9)(H) of the Code (“2009 RMDS”), and who would have satisfied that requirement by
receiving distributions that are (1) equal to the 2009 RMDs or (2) one or more payments in a
series of substantially equal distributions (that include the 2009 RMDs) made at least annually
and expected to last for the life (or life expectancy) of the participant, the joint lives of the
participant and the participant’s designated beneficiary, or for a period of at least ten (10) years
(“Extended 2009 RMDs”), will not receive those distributions for 2009 unless the participant or
beneficiary chooses to receive such distributions. Participants and beneficiaries described in the
5-e #1376432
preceding sentence will be given the opportunity to elect to receive the distribution described in
the preceding sentence. Notwithstanding any other provision of the Plan, 2009 RMDs and
Extended 2009 RMDs shall be treated as eligible rollover distributions under Section 5.2.
Account; (3) Participant’s Rollover Contribution Account; (4) Employer First Layer
Contribution Account; and (5) Employer Second Layer Contribution Account. All expenses
directly related to the implementation, maintenance and collection of a participant’s loan shall be
charged against such participant’s account(s) unless paid by the participant.
7. DEFAULT
(a) Events of Default. Events of default shall include, but shall not be limited to, the
following:
(1) Failure of the borrower to pay the full amount of any principal or interest
when due for a period of more than ninety (90) days;
(2) Death or insolvency of the borrower; or
(3) Failure of the borrower to provide additional security in the event security
for the loan becomes inadequate.
If an employee is on an unpaid leave of absence for more than thirty-one (31) days, he is allowed
to renegotiate the loan and extend the loan’s maturity date by executing a new promissory note.
In no event will the participant be allowed to extend the loan beyond the maximum period
allowed or renegotiate a loan which exceeds the maximum loan amount under these procedures.
In the event the employee returns to active employment status within ninety (90) days, the
employee may elect to remit the loan payments to OCWD directly during the leave, or have the
Employer deduct from his pay an amount equal to any missed payments.
(b) Action upon Default. The retirement committee shall take all actions necessary to
S-6 #1376432
preserve Plan assets upon the default on a loan. Such actions shall include, but shall not
be limited to, the following.
(1) Making formal demand for payment in writing; or
(2) Commencing a legal proceeding against the borrower or any guarantor.
If a loan is in default, the retirement committee has the option of foreclosing on any other
security it holds or, to the extent a distribution to the participant is permissible under the Plan,
offset the participant’s vested accounts by the outstanding loan balance. In the case of a
participant who has terminated employment, the committee may declare a loan in default to be
immediately due and payable and the remaining principal and interest amount owed will at that
time be treated as a distribution. As a result of this distribution, the retirement committee will
treat the loan as repaid to the extent of any permissible offset. A participant who is an employee
shall have the opportunity to repay the loan, resume current status of the loan by paying any
missed payment plus interest or, if distribution is permitted under the Plan, request distribution
of the note. Pending final disposition of the loan, the participant remains obligated for any
unpaid principal and any interest due thereon.
To the extent required by law, any missed payments or any loan in default shall be treated as a
taxable income. The usual income tax rules for distributions from qualified plans shall apply to
loan amounts treated as taxable income.
8. BENEFIT DISTRIBUTIONS
If a valid spousal consent has been obtained, then, notwithstanding any other provision of this
Plan, the portion of the participant’s account(s) used as a security interest held by the Plan by
reason of a loan outstanding to the participant shall be taken into account for purposes of
determining the amount of benefits payable at the time of death or distribution, but only if the
reduction is used as repayment of the loan. If less than one hundred (100) percent of the
participant’s vested account(s) (determined without regard to the preceding sentence) is payable
to the surviving spouse, then the account(s) shall be adjusted by first reducing the vested
account(s) by the amount of the security used as repayment of the loan, and then determining the
S-7 #1376432
benefit payable to the surviving spouse.
The entire amount including the unpaid loan balance but net of after tax contributions, will be
treated and reported to the Internal Revenue Service, as a taxable distribution for the year in
which such distribution is made.
IN WITNESS WHEREOF, Orange County Water District has caused this Restatement of the
Plan to be executed on the ___ day of _____________, 2014.
Board of Directors
By ______________________________________
President
#1405232
AMENDMENT NUMBER THREE
MONEY PURCHASE PLAN FOR EMPLOYEES OF ORANGE COUNTY WATER DISTRICT
(AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2009)
In accordance with Article 7.3 of the Plan, the Money Purchase Plan for
Employees of Orange County Water District (the “Plan”) is hereby amended to read as
follows:
1. Effective for Plan Years beginning after July 1, 2007, Section 2.5(D) of
the Plan is amended to add the first sentence at the beginning of the first paragraph:
“The rules described in this section (D) are applicable to Plan Years beginning
before July 1, 2007.”
2. Effective January 1, 2014, the reference in Section 2.5(F)(2) of the Plan to
“Code Section 104(a)(17)” shall be amended to read “Section 401(a)(17) of the Code”.
IN WITNESS WHEREOF, Orange County Water District has caused this Third
Amendment to the Plan to be executed on the ___ day of _____________, 2014.
Board of Directors
By ______________________________________
President
INTERNAL REVENUE SERVICE P. 0. BOX 2508 CINCINNATI, OH 45201
Date: FEB 2 8 2014 ORANGE COUNTY WATER DISTRICT C/0 TRUCKER HUSS APC FREEMAN L LEVINRAD ONE EMBARCADERO CTR 12TH FLR SAN FRANCISCO, CA 94111
Dear Applicant:
DEPARTMENT OF THE TREASURY
Employer Identification Number: 95-6002277
DLN: 17007323060013
Person to Contact: CHRISTINE L CHAILLE
Contact Telephone Number: (513) 263-4558
Plan Name:
ID# 31324
MONEY PURCHASE PLAN FOR EMPLOYEES OF ORANGE COUNTY WATER DISTRICT
Plan Number: 611
We have made a favorable determination on the plan identified above based on the information you have supplied. Please keep this letter, the application forms submitted to request this letter and all correspondence with the Internal Revenue Service regarding your app+ication for a determination letter in your permanent records. You must retain this information to preserve your reliance on this letter.
Continued qualification of the plan under its present form will depend on its effect in operation. See section 1.401-l(b) (3) of the Income Tax Regulations. We will review the status of the plan in operation periodically.
The enclosed Publication 794 explains the significance and the scope of this favorable determination letter based on the determination requests selected on your application forms. Publication 794 describes the information that must be retained to have reliance on this favorable determination letter. The publication also provides examples of the effect of a plan's operation on its qualified status and discusses the reporting requirements for qualified plans. Please read Publication 794.
This letter relates only to the status of your plan under the Internal Revenue Code. It is not a determination regarding the effect of other federal or local statutes.
This determination letter gives no reliance for any qualification change that becomes effective, any guidance published, or any statutes enacted, after the issuance of the cumulative List (unless the item has been identified in the Cumulative List) for the cycle under which this application was submitted.
This determination letter is applicable for the amendment(s) executed on 8/7/13 & 12/15/10.
This determination letter is also applicable for the amendment(s) dated on 3/4/09 & 6/4/08.
This determination is subject to your adoption of the proposed amendments
Letter 2002
- 2 -
ORANGE COUNTY WATER DISTRICT
submitted in your letter dated 2/24/14. The proposed amendments should be adopted on or before the date prescribed by the regulations under Code section 401(b).
This determination letter is based solely on your assertion that the plan is entitled to be treated as a Governmental plan under section 414(d) of the Internal Revenue Code.
This letter may not be relied on after the end of the plan's first five-year remedial amendment cycle that ends more than 12 months after the application was received. This letter expires on January 31, 2019. This letter considered the 2012 Cumulative List of Changes in Plan Qualification Requirements.
This is not a determination with respect to any language in the plan or any amendment to the plan that reflects Section 3 of the Defense of Marriage Act, Pub. L. 104-199, 110 Stat. 2419 (DOMA) or U.S. v. Windsor, 133 S. Ct. 2675 (2013), which invalidated that section.
We have sent a copy of this letter to your representative as indicated in the Form 2848 Power of Attorney or appointee as indicated by the Form 8821 Tax Information Authorization.
If you have questions concerning this matter, please contact the person whose name and telephone number are shown above.
Sincerely,
Andrew E. Zuckerman Director, EP Rulings & Agreements
Enclos·ures: Publication 794
Letter 2002
8
AGENDA ITEM SUBMITTAL
Meeting Date: April 10, 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/V. Sharma CEQA Compliance: N/A Subject: INVESTMENT PORTFOLIO HOLDINGS REPORT SUMMARY The District’s monthly Investment Portfolio Holdings Report will be discussed with the Committee. Attachment(s): Investment Portfolio Holdings Report dated March 31, 2014. RECOMMENDATION Agendize for April 16 Board meeting: Receive and file Investment Portfolio Holdings Report dated March 31, 2014. BACKGROUND/ANALYSIS The Investment Portfolio Holdings Report is a list of each of the District’s fixed income investments and provides the market value at the end of each month. All securities within the District’s Investment Portfolio are in compliance with the District’s Statement of Investment Policy. The District’s portfolio maturities provide cash liquidity sufficient to meet the District’s projected six-month expenditures (as required by Government Code Section 53646). Highlights since the previous report include: The yield on the one-year Treasury note as of the month end is at 0.13%; two-
year at 0.44% and the five-year at 1.73% The last Federal Open Market Committee (FOMC) meeting was held on March
18-19, 2014. The FOMC concerned by current market conditions left the Federal funds rate unchanged to a range of 0% to 0.25%. This is the rate prime banks lend to each other.
The District’s total rate of return on investments is 0.898%.
TRADE PURCHASE NEXT MATURITY INVESTMENT INSTITUTION OR PAR DISC RATE YIELD TO ORIGINAL MARKET VALUE (1) Portfolio CUSIPDATE DATE CALL DATE RATING TYPE ISSUER AMOUNT or COUPON MATURITY COST 3/31/2014 % NUMBER
Investment Pools
Local Agency Invest Fund (LAIF) State of California Treasury $34,480,740 (FEB rate) 0.236% (1) $34,480,740 $34,480,740 16.11% Orange County Invest Pool (OCIP) County of Orange $18,703,429 (FEB rate) 0.304% (1) $18,703,429 $18,703,429 8.74%
Money Market Funds
Money Market Account Union Bank of California $233,653 0.010% $233,653 $233,653 0.11%
Collaterized Certificate of Deposit
02/24/14 02/24/14 02/24/15 Collaterized Certificate of Deposit East West Bank $12,619,588 0.650% 0.650% $12,619,588 $12,619,588 5.90% 178923410
10/09/12 10/11/12 cont. 07/11/17 AA+/Aaa FFCB - call on/after 1/11/13 Federal Farm Credit Bank $3,000,000 0.842% 0.842% $2,997,000 $2,960,250 3133EA4H810/12/12 10/15/12 cont. 04/11/17 AA+/Aaa FFCB - call on/after 1/11/13 Federal Farm Credit Bank $3,000,000 0.700% 0.728% $2,996,250 $2,963,760 3133EA4G012/12/12 12/18/12 cont. 09/18/17 AA+/Aaa FFCB - call on/after 3/18/13 Federal Farm Credit Bank $3,000,000 0.790% 0.807% $2,997,600 $2,948,430 3133ECA9510/16/12 10/18/12 cont. 10/18/17 AA+/Aaa FFCB - call on/after 10/18/13 Federal Farm Credit Bank $3,000,000 0.870% 0.876% $2,999,100 $2,966,970 3133EA5A201/30/13 01/31/13 cont. 01/22/18 AA+/Aaa FFCB - call on/after 1/22/14 Federal Farm Credit Bank $3,000,000 0.940% 1.043% $2,985,000 $2,953,140 6.91% 3133ECDE1
10/24/12 10/26/12 cont. 10/23/17 AA+/Aaa FHLB - call on/after 1/23/13 Federal Home Loan Bank $3,000,000 0.900% 0.931% $2,995,500 $2,954,850 313380Z3412/18/12 12/19/12 04/09/14 11/09/17 AA+/Aaa FHLB - mnthly call on/after 5/09/13 Federal Home Loan Bank $3,000,000 1.000% 1.000% $3,000,000 $2,949,420 3133813R4
1/04 & 1/18 01/22/13 04/22/14 01/22/18 AA+/Aaa FHLB - qtrly call on 7/22/13 (2009A) Federal Home Loan Bank $11,260,000 0.950% 0.981% $11,246,240 $11,100,221 313381QE81/04 & 1/18 01/22/13 04/22/14 01/22/18 AA+/Aaa FHLB - qtrly call on/after 7/22/13 Federal Home Loan Bank $115,000 0.950% 0.981% $114,885 $113,368 313381QE801/03/13 01/30/13 04/30/14 01/30/18 AA+/Aaa FHLB - qtrly call on/after 7/30/13 Federal Home Loan Bank $5,000,000 1.000% 1.000% $5,000,000 $4,911,650 313381RE702/28/13 02/28/13 cont. 01/30/18 AA+/Aaa FHLB - call on/after 4/30/13 Federal Home Loan Bank $2,050,000 0.950% 0.992% $2,045,900 $2,014,781 313381VM405/15/13 06/13/13 06/13/14 06/13/18 AA+/Aaa FHLB - qtrly call on/after 9/13/13 Federal Home Loan Bank $3,000,000 1.150% 1.150% $3,000,000 $2,939,340 313383AW101/07/14 01/30/14 04/30/14 01/30/19 AA+/Aaa FHLB - qtrly call on/after 4/30/14 Federal Home Loan Bank - Step $3,000,000 1.000% 2.457% $3,000,000 $2,997,060 3130A0LB401/07/14 01/30/14 04/30/14 01/30/19 AA+/Aaa FHLB - qtrly call on/after 4/30/14 Federal Home Loan Bank $3,000,000 2.050% 2.050% $3,000,000 $2,974,350 3130A0K6602/12/14 03/14/14 04/14/14 03/14/19 AA+/Aaa FHLB - mnthly call on/after 4/14/14 Federal Home Loan Bank $3,000,000 2.000% 2.000% $3,000,000 $2,981,700 3130A0YQ703/05/14 03/27/14 06/27/14 03/27/19 AA+/Aaa FHLB - qtrly call on/after 6/27/14 Federal Home Loan Bank - Step $3,000,000 0.500% 2.695% $3,000,000 $2,996,160 18.19% 3130A1B49
Total Federal Agencies $150,025,000 $149,970,850 $148,024,775 69.15%
Sub Totals $216,062,410 0.898% $216,008,260 $214,062,185 100%Restricted / Debt Service Funds:
Certificate Payment Fund Series 2003A/2005B/2009A $25 0.010% $25Reserve Fund Series 2009A $69,213 0.010% $69,213Interest Fund Series 2013A $7 0.000% $7 Investment RevenueCPV Deposit Union Bank $500,000 0.010% $500,000 FYTD
$216,631,655 $214,631,430 Fair Market Value Adj.
Unrestricted 1,022,880 Restricted 206,975
Investment IncomeOCWD - Petty Cash $2,700 Unrestricted 874,614 Bank Balance (unreconciled) Union Bank Gen - Interest 0.110% $94,612 Restricted 171,524 Bank Balance (unreconciled) Wells Fargo - Payroll 0.000% $33,784
Bank Balance (unreconciled) Wells Fargo - Checking 0.010% $1,876,117 Total per G/L 2,275,993 Total $216,638,643
(1) Market value is as of the most recent quarter-end/month-end as reported by LAIF/OCIP/FCB. Security values are provided by Bloomberg Financial Markets and/or Union Bank Investment Services.
Note: This Investment Summary Report is in conformity with OCWD's Investment Policy and provides sufficient liquidity to meet the next six months estimated expenditures.
Orange County Water DistrictInvestment Portfolio Holdings Report
03/31/14
LAIF & OC Pool, $53,184,169 , 25%
Working Cash & Debt Service Funds,
$13,676,679 , 6%
Money Market Funds, $233,653 , 0%
Collaterized CD, $12,619,588 , 6%
Federal Agencies , $136,924,554 , 63%
OCWD - Investment Portfolio
as of March 31, 2014
Note: LAIF and Orange County Pool Rates are as of February 28, 2014.
0.236%
0.304%
0.898%
0.130%
0.000%
0.100%
0.200%
0.300%
0.400%
0.500%
0.600%
0.700%
0.800%
0.900%
1.000%
LAIF Orange County Pool Total OCWD Investment return U.S. Treasury 1 Year Note
OCWD - Investment Return Comparision for the Month Ended 3/31/14
0.00
20,000,000.00
40,000,000.00
60,000,000.00
80,000,000.00
100,000,000.00
120,000,000.00
0-6 Months 7-12 Months 1-3 Years 3-4 Years 4-5 Years
AGENDA ITEM SUBMITTAL Meeting Date: April 10, 2014 Budgeted: N/A Budgeted Amount: $54.8 million To: Administration/Finance Issues Cte. Cost Estimate: $54.8 million Board of Directors Funding Source: General Fund 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: PROPOSED FY 2014-15 GENERAL FUND BUDGET
SUMMARY
The proposed fiscal year (FY) 2014-15 General Fund budget totals $54.8 million which provides funds for operating 21 cost centers. The general fund budget includes the annual expenses to operate all District facilities including the Groundwater Replenishment System (GWRS), Green Acres Plant, the laboratory, recharge operations, and wetlands. Attachment(s):
General Fund Budget Summary General Fund Budget Comparison General Fund Budget Cost Center Detail Presentation material
RECOMMENDATION Agendize for April 16 Board meeting: 1) Provide comments and direction to staff; and 2) Schedule consideration to adopt the FY 2014-15 budget for April 16, 2014. DISCUSSION The proposed FY 2014-15 General Fund budget totals $54.8 million which provides funds for operating 21 cost centers. This represents a $2.2 million increase from the current FY 2013-14 budget. The attached documents provide a summary and comparison of the proposed budget. Additionally the budget details for the 21 cost centers are attached.
As described in the Work Plans, headcount increased from 215.5 to 217.5. The added positions include two operators in Water Production.
Previous and Proposed General Fund Budgets
$58.9$55.1 $54.0 $53.1 $52.6 $54.8
$0
$10
$20
$30
$40
$50
$60
$70
FY09-10 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15
Mill
ion
s
For the current fiscal year the GWRS was budgeted to create 70,000 acre-feet of water supply. For the proposed FY 2014-15 budget, the plant is expected to create 80,000 acre-feet of water supply due to the start up of the GWRS Initial Expansion.
MARKETING ( EVENT TABLING PROGRAM ADS/SPONSORSHIPS, BLOGS) 6,000 6,000 OC WATER HERO PROGRAM (RE-VAMP PROGRAM) 20,000 20,000 SPONSORSHIP FOR CHILDREN'S FOUNDATION OF OC GIFT OF HISTORY 15,000 15,000
SPECIAL DEPARTMENT EXPENSE TOTAL 42,500 15,000 20,000 - 2,000 4,000 - 83,500 1012.51119 SPECIAL DEPARTMENT EXPENSE - OC WATER SUMMIT
OC WATER SUMMIT - OPERATING COSTS 85,000 85,000 SPECIAL DEPARTMENT EXPENSE - OC WATER SUMMIT TOTAL - - - 85,000 - - - 85,000
MISCELLANEOUS REIMBURSEMENT - OC WATER SUMMIT TOTAL - - - (77,500) - - - (77,500) 1012.51116 SPECIAL DEPARTMENT EXPENSE - CWF
CHILDREN'S FESTIVAL 198,000 198,000 SPECIAL DEPARTMENT EXPENSE - CWF TOTAL - 198,000 - - - - - 198,000
MISCELLANEOUS REIMBURSEMENT - CWF
1012.51116.250 CHILDREN'S FESTIVAL ( $70,000 SPONSORS) (70,000) (70,000) 1012.51116.140 CHILDREN'S FESTIVAL ($10,000 GRANTS WE WILL APPLY FOR) (10,000) (10,000)
SALARIES & BENEFITS TOTAL 1,183,932 1,183,932 1016.52501 COMMUNICATION
ANSWER NET AND CONFERENCING SERVICE 2,500 2,500 CELLULAR TELEPHONE & WIRELESS SERVICES 54,000 54,000
INTERNET SERVICE - FOUNTAIN VALLEY & PRADO 30,000 30,000 PHONE SERVICE (PHYSICAL CIRCUITS, DID LINES, LONG DISTANCE, ETC.) 65,000 65,000 REPLACEMENT PHONES 3,500 3,500 MISCELLANEOUS COMMUNICATIONS 5,000 5,000
UNIFORMS & SAFETY TOTAL 200 200 1024.51531 SHIRTS - LOGO SHIRTS - LOGO 200 200
SHIRTS - LOGO TOTAL 200 200 1024.57004 MAINTENANCE EQUIPMENT - GENERAL
ITRON HANDHELD ANNUAL MAINTENANCE 2,500 2,500MAINTENANCE EQUIPMENT - GENERAL TOTAL 2,500 2,500
1024.51102 MEMBERSHIPAMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 800 800INSTITUTE OF MANAGEMENT ACCOUNTANTS 200 200CALIFORNIA MUNICIPAL TREASURERS ASSOCIATION 300 300
CPA LICENSE/AICPA (VS, DS, WX) 600 600CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS 500 500
CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS 300 300 GOVERNMENT FINANCE OFFICERS ASSOCIATION 300 300
MEMBERSHIP TOTAL 3,000 3,000
Section 11 Cost Center Detail
Orange County Water District 11-14 FY 2014-15 Budget Report
Description General
ACTIVITY CODE 9900
GENERAL FUND OPERATING BUDGET FY 14-15FINANCE (1024)
JDE Account Number
Total
1024.51192 TECHNICAL TRAINING DIEHL EVANS TAX LAW CHANGES SEMINAR ( 2 STAFF ) 1,000 1,000
CSCPA TECHNICAL TRAINING (VS, DS, WX, JY) 3,000 3,000TECHNICAL TRAINING TOTAL 4,000 4,000
Orange County Water District 11-16 FY 2014-15 Budget Report
Description General ACTIVITY CODE 9900
GENERAL FUND OPERATING BUDGET FY 14-15HUMAN RESOURCES (1030)
JDE Account Number
Total
1030.51501 OFFICE EXPENSE - GENERAL EMPLOYMENT ADVERTISING 8,000 8,000
NEOGOV 3,000 3,000 FEDERAL EXPRESS 200 200
EMPLOYEE OF THE MONTH/YEAR AWARD EXPENSES 300 300 ERP AWARD CERTIFICATES 5,000 5,000
LENGTH OF SERVICE AWARDS 5,000 5,000 OFFICE SUPPLIES 5,000 5,000
OFFICE EXPENSE - GENERAL TOTAL 26,500 26,500
1030.51104 SUBSCRIPTIONS LEGAL BULLETINS 200 200
SUBSCRIPTIONS TOTAL 200 200
1030.51102 MEMBERSHIP NATIONAL NOTARY ASSOCIATION 500 500
CALPACS - PUBLIC AGENCY COMPENSATION WEBSITE 275 275 ORANGE COUNTY HR CONSORTIUM (FORMERLY LEAGUE OF CITIES HR GROUP) 250 250 SOCIETY HUMAN RESOUCES MANAGEMENT 185 185 EMPLOYERS GROUP MEMBERSHIP 3,500 3,500
MEMBERSHIP TOTAL 4,710 4,710
1030.51192 TECHNICAL TRAINING HR EDUCATIONAL TRAINING 4,000 4,000 EMPLOYEE TRAINING 4,000 4,000
FIDUCIARY 6,500 6,500 GENERAL LIABILITY 275,000 275,000 PROPERTY 285,000 285,000 TOUR GROUP AND BUSINESS TRAVEL 2,300 2,300
INSURANCE TOTAL 576,800 576,800 1034.52005 CLAIMS SMALL NON-TRIAL CLAIMS, WORK COMP FIRST AID 5,000 5,000
CLAIMS TOTAL 5,000 5,000 1034.51301 TRAVEL/CONFERENCE/MILEAGE ACWA/JPIA CONFERENCE AND MEETINGS/PROFESSIONAL DEVELOPMENT (4) 2,000 2,000
AMERICAN SOCIETY OF SAFETY ENGINEERS CONFERENCE 2,000 2,000 PASMA CONFERENCE/BUSINESS MEETINGS 200 200
MILEAGE 800 800 TRAVEL/CONFERENCE/MILEAGE TOTAL 5,000 5,000
1034.51520 GAS & DIESEL FUEL - SECURITY GUARD 2,000 2,000
GAS & DIESEL TOTAL 2,000 2,000
1034.53001 PROFESSIONAL SERVICE - GENERALMSDS ONLINE ANNUAL FEE (YEAR 3 OF 3 YEAR CONTRACT) 2,700 2,700 ARC FLASH ASSESSMENT (FHQ, ADMIN., LAB) 19,700 19,700 HEPATITIS A AND B SHOTS 5,000 5,000 RESPIRATOR FIT TESTS 5,500 5,500 ERP REVISION 5,000 5,000
PROFESSIONAL SERVICE - GENERAL TOTAL 37,900 37,900
JDE Account Number
GENERAL FUND OPERATING BUDGET FY 14-15SAFETY & RISK MANAGEMENT (1034)
Total
Section 11 Cost Center Detail
Orange County Water District 11-18 FY 2014-15 Budget Report
Description Administration
ACTIVITY CODE 9900
JDE Account Number
GENERAL FUND OPERATING BUDGET FY 14-15SAFETY & RISK MANAGEMENT (1034)
Total
1034.51501 OFFICE EXPENSE - GENERAL FEDERAL EXPRESS/COURIER 200 200 MISCELLANEOUS SUPPLIES 250 250
TRAINING MATERIALS AND MEETING EXPENSES 1,250 1,250 OFFICE EXPENSE - GENERAL TOTAL 1,700 1,700
1034.51104 SUBSCRIPTIONS CAL OSHA REPORTER 400 400 BUSINESS AND LEGAL REPORT (BLR) 1,000 1,000
SUBSCRIPTIONS TOTAL 1,400 1,400
1034.51530 UNIFORMS & SAFETYERGONOMIC EQUIPMENT 4,000 4,000 PERSONAL PROTECTIVE EQUIPMENT 2,000 2,000 UNIFORMS FOR SECURITY GUARD AND OCWD SHIRTS 1,000 1,000 SAFETY GLASSES - RX 5,000 5,000
SHOES 18,000 18,000 UNIFORMS & SAFETY TOTAL 30,000 30,000
1034.51202 SECURITY PROGRAM ACCESS CONTROL MAINTENANCE/AGREEMENT 8,000 8,000
ALARM SYSTEM MONITORING - TRI-TEK 3,800 3,800 SECURITY PROGRAM TOTAL 11,800 11,800
1034.51112 SPECIAL DEPARTMENT EXPENSE CITY/COUNTY ALARM PERMITS 350 350
COUNTY HAZMAT WASTE PROGRAM - CUPA 7,000 7,000 DTSC AND EPA FEES 1,100 1,100 HAZMAT DISPOSAL FEE AND CITY PERMITS 750 750 STATE GENERATOR FEE 1,200 1,200
SPECIAL DEPARTMENT EXPENSE TOTAL 10,400 10,400
SAFETY AND RISK MANAGEMENT GRAND TOTAL 1,004,133 1,004,133
Section 11 Cost Center Detail
Orange County Water District 11-20 FY 2014-15 Budget Report
NPDES GENERAL DEWATERING PERMIT - BASINWIDE (EXCLUDES 2,062 2,062 DISCHARGES TO NEWPORT BAY) SEAL BEACH NAVAL WEAPONS STATION: RAPIDGATE CREDENTIALS 1,630 1,630 FOR OCWD (COMPANY) AND STAFF ACCESS TO BASE SPENT CARBON DISPOSAL COSTS (CARBON TREATMENT OF 2,500 500 3,000 PURGED GW AT MONITORING WELL SITES TO MEET NPDES DISCHARGE PERMIT LIMITS)
SPECIAL DEPT EXPENSE TOTAL 8,254 - 1,859 - - - - - 10,113
WATER QUALITY GRAND TOTAL 812,598 253,958 528,946 242,305 2,259 17,880 2,259 44,259 1,904,465
Section 11 Cost Center Detail
Orange County Water District 11-23 FY 2014-15 Budget Report
1044.51301 TRAVEL/CONFERENCE/MILEAGE ACWA CONFERENCES (FALL AND SPRING) 2,000 2,000
ACWA GROUNDWATER COMM MTGS IN SACRAMENTO 600 600 WASHINGTON DC MTGS WITH ARMY CORPS ON PRADO FS 1,800 1,800 GRA BOARD MEETINGS (4 TRIPS) 1,400 1,400 MANAGED AQUIFER RECHARGE CONFERENCE 500 500
TRAVEL/CONFERENCE/MILEAGE TOTAL 6,300 - 6,300
1044.53001 PROFESSIONAL SERVICE - GENERALPRADO BASIN FEASIBILITY STUDY (TECHNICAL STUDIES AND CONSULTANT SUPPORT) 200,000 200,000 PRADO BASIN FEASIBILITY STUDY (PAYMENT TO CORPS OF FINAL 50% STUDY COSTS) * - LOWER SANTIAGO CREEK RECHARGE FEASIBILITY STUDY * . - UPDATES TO COMPUTER MODEL OF RECHARGE FACILITIES 25,000 25,000 MID-BASIN INJECTION CEQA ANALYSIS 75,000 75,000 SUPPORT FOR CEQA COMPLIANCE (AIR & NOISE ANALYSES) 30,000 30,000 SARI/OCSD PLANT 2 RECYCLING WATER QUALITY STUDY 50,000 50,000 SANTA ANA RIVER WATERMASTER ACTION TEAM 10,000 10,000 TECHNICAL REVIEW FOR REWG - DR MATT BECKER 2,000 2,000 SUPPORT TO PREPARE FEASIBILITY STUDIES 20,000 20,000
PROFESSIONAL SERVICE - GENERAL TOTAL 212,000 200,000 412,000 1044.51501 OFFICE EXPENSE - GENERAL
SPECIAL COPYING AND FEDERAL EXPRESS 1,500 1,500 OFFICE EXPENSE - GENERAL TOTAL 2,200 - 2,200
GENERAL FUND OPERATING BUDGET FY 14-15PLANNING & WATERSHED MANAGEMENT (1044)
JDE Account Number Total
Section 11 Cost Center Detail
Orange County Water District 11-29 FY 2014-15 Budget Report
Description General Prado FS
ACTIVITY CODE 9900 9978
GENERAL FUND OPERATING BUDGET FY 14-15PLANNING & WATERSHED MANAGEMENT (1044)
JDE Account Number Total
1044.51520 GAS & DIESEL FUELFUEL FOR DISTRICT VEHICLES 4,000 4,000
GAS & DIESEL FUEL TOTAL 4,000 - 4,000
1044.51112 SPECIAL DEPARTMENT EXPENSEWATER RIGHTS FEE (STATE WATER RESOURCES CONTROL BOARD) 25,000 25,000 REGIONAL GENERAL MAINTENANCE PERMIT (CA DEPT OF FISH & WILDLIFE ANNUAL FEE) 20,000 20,000 REWG STUDIES (LOWER FIVE COVES, LINCOLN, SANTIAGO CREEK AT GRIJALVA PK) 35,000 35,000 PERMIT FEES FOR PROJECTS (CDFG, ARMY CORPS, REG BOARD, CEQA FILINGS) 19,000 19,000
SPECIAL DEPARTMENT EXPENSE TOTAL 99,000 - 99,000
1044.51530 UNIFORMS & SAFETY DISTRICT SHIRTS 200 200
OFFICE EXPENSE - GENERAL TOTAL - 17,000 300 - - - - - 17,300
1050.51510 HARDWARE/SOFTWAREPCS SYSTEM SOFTWARE SUPPORT (EMERSON GUARDIAN) 56,000 56,000 PCS SYSTEM HARDWARE 5,000 5,000 MANUGISTICS UPGRADE (UPGRADE 11 YEAR OLD PROGRAM) 900 900
1050.51555 LAB SUPPLIESCALIBRATION STANDARDS FOR BARRIER FIELD EQUIPMENT 600 600
CHEMICALS AND SUPPLIES 19,000 19,000 LABORATORY DI WATER SYSTEM 2,500 2,500 PEROXIDE AND CHLORINE TEST STRIPS 1,000 1,000 2 NEW HANDHELD EC PH METERS 2,500 2,500
1050.51565 RENT EQUIPMENT- GENERALRENTAL OF EQUIPMENT FOR PM PROJECTS 2,000 1,000 3,000
RENT EQUIPMENT - GENERAL TOTAL - 2,000 - - 1,000 - - - 3,000
1050.54501 UTILITIES - ELECTRICITY (OFFSITE & MISC ELECTRICAL METERS) GAP CATHODIC PROTECTION 12,000 12,000 GAP DEEP WELL WATER ELECTRICITY 40,000 40,000
GAP INFLUENT PUMPING ELECTRICITY 32 000 32 000 GAP INFLUENT PUMPING ELECTRICITY 32,000 32,000 GAP SANTA ANA RESERVOIR PUMP STATION POWER (CNE/SCE) 130,000 130,000
1050.51192 TECHNICAL TRAININGDELTA V PROCESS CONTROL TRAINING 2,500 2,500 I&E MEDIUM VOLTAGE SAFETY TRAINING CLASSES 3,500 3,500 MICROSOFT OFFICE TRAINING 1,500 1,500 MANAGEMENT TRAINING 1,200 1,200 MAINTENANCE TRAINING 1,500 1,500 WPG TRAINING LIBRARY 400 400 OPERATOR CERTIFICATION CLASSES 5,000 5,000 ON SITE O&M TECHNICAL TRAINING 1,500 1,500 CRANE TRAINING 3,500 3,500 ULTRASONIC MONITOR TRAINING & CERTIFICATION 1,500 1,500 WATER DISTRIBUTION TRAINING BARRIER STAFF 500 500
TECHNICAL TRAINING TOTAL - 21,700 400 500 - - - - 22,600
1050.51112 SPECIAL DEPARTMENT EXPENSECONSULTING SERVICE PERMITS 2,000 2,000
SCAQMD AND CITY PERMIT FEES 14,000 14,000 UNITED PARCEL SERVICE 1,000 1,000
ORANGE COUNTY PUBLIC FACILITIES PERMIT 350 350 SPECIAL DEPARTMENT EXPENSE TOTAL - 17,000 - 350 - - - - 17,350
1050 56026 LADPW CURRENT EXPENSE1050.56026 LADPW CURRENT EXPENSELADPW BARRIER 800,000 800,000
LADPW CURRENT EXPENSE TOTAL - - - - - - - 800,000 800,000
WATER PRODUCTION GRAND TOTAL 836,125 18,625,986 678,852 950,829 712,240 1,739,057 444,709 827,656 24,815,454
Section 11 Cost Center Detail
Orange County Water District 11-41 FY 2014-15 Budget Report
1080.51565 RENT EQUIPMENT - GEN EQUIPMENT RENTAL 3,000 3,000
RENT EQUIPMENT - GEN TOTAL 3,000 - - 3,000
1080.51550 SAFETY SUPPLIES SAFETY EQUIPMENT SUCH AS SAFETY GOGGLES, GLOVES 1,000 1,000
SAFETY SUPPLIES TOTAL 1,000 - - 1,000
1080.51112 SPECIAL DEPARTMENT EXPENSE OTHER ENVIRONMENTALLY RELATED FEES 7,000 7,000
SPECIAL DEPARTMENT EXPENSE TOTAL 7,000 - - 7,000
1080.56012 INTER AGENCY SANTA ANA SUCKER CONSERVATION (SAWPA) 15,000 15,000
INTER AGENCY TOTAL 15,000 - - 15,000
NATURAL RESOURCES GRAND TOTAL 337,497 399,081 136,553 873,130
Section 11 Cost Center Detail
Orange County Water District 11-59 FY 2014-15 Budget Report
SECTION 11 ACRONYMS & ABBREVIATIONS
ACOE or Corps United States Army Corps of Engineers ACWA Association of California Water Agencies af acre-feet AGWA Association of Ground Water Agencies AMX water billing system AOP Advanced Oxidation Process AWPF Advanced Water Purification Facilities AWWARF American Water Works Association Research Foundation BCV Basin Cleaning Vehicle BEA Basin Equity Assessment BPP Basin Production Percentage CIP Capital Improvement Program CMMS Computerized Maintenance Management System CSDA California Special Districts Association DPH California Department of Public Health EDC endocrine disrupting compounds EPA Environmental Protection Agency ERP Emergency Response Plan FHQ Field Headquarters FIS Financial Information System FRL Field Research Laboratory FTE full time equivalent FY fiscal year GL general liability insurance GAP Green Acres Project GWR Groundwater Replenishment I&E Instrumentation and electrical IEUA Inland Empire Utilities Agency IIS Integrated information systems IRWD Irvine Ranch Water District IS Information Services JDE JD Edwards JPIA Joint Powers Insurance Authority LC/MS/MS liquid chromotograph/double mass spectrometer LIMS Lab Information System LTFP Long-Term Facilities Plan mgd million gallons per day MSDS Material Safety Data Sheet MWD Metropolitan Water District of Southern California MWDOC Municipal Water District of Orange County NDMA N-nitrosodimethylamine NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M operations and maintenance OCCOG Orange County Council of Government OCEA Orange County Employee Association OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OMMP Operations, Maintenance and Monitoring Plan PAC project advisory committee PBDE Poly-Brominated Diephenyl Ethers
SECTION 11 ACRONYMS & ABBREVIATIONS
PCS Process Control System PDAs personal digital assistants Producers Orange County groundwater producers QA/QC quality assurance/quality control RA replenishment assessment R&D Research and Development REWG Recharge Enhancement Working Group RFP requests for proposals RMP Risk Management Plan RO reverse osmosis R&R Replacement & Refurbishment RWQCB Regional Water Quality Control Board SAR Santa Ana River SARWQH Santa Ana River Water Quality Health SAWA Santa Ana Watershed Association SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition TMDL total maximum daily load TOC total organic carbon UCMR2 Unregulated Contaminant Monitoring Rule Phases UCI University of California Irvine UV ultraviolet light VOC volatile organic compounds WEROC Water Emergency Response of Orange County WQ Water Quality W/C Workers’ compensation WRF WateReuse Research Foundation WRMS Water Resource Management System YLWD Yorba Linda Water District
Budget preparation overview and kick-off Committee
January 22, 2014 Board Provide preliminary BPP and RA estimates
March 5, 2014 Board Present Draft Budget
March 12, 2014 WIC Review Water Budget
Review water reserves
March 12, 2014 Producers Present Draft Budget
March 13, 2014 Admin. Finance Review R&R Fund Budget Committee
April 9, 2014 WIC Review CIP Budget
April 9, 2014 Producers Selected Budget topics
April 1 0, 2014 Admin. Finance Review General Fund Budget ~ Committee
April 16, 2014 Board Public Hearing to set RA & BPP
10
AGENDA ITEM SUBMITTAL Meeting Date: April 10, 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: S Dosier/ K Dusky CEQA Compliance: N/A Subject: EMPLOYMENT STATUS REPORT SUMMARY The Employment Status Report is provided quarterly to the Board as an informational item. This report is for the period ending March 2014. Attachment(s): Employment Status Report dated March 31, 2014 RECOMMENDATION Informational
APPROVED BUDGETED POSITIONSEMPLOYMENT STATUS REPORT
All available information as of : 3/31/14
11
AGENDA ITEM SUBMITTAL Meeting Date: April 10, 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 / V. Sharma CEQA Compliance: N/A Subject: CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL
REPORTING SUMMARY The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2013. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized CAFR, whose contents conform to program standards. This report must satisfy both generally accepted accounting principles and applicable legal requirements. RECOMMENDATION Informational BACKGROUND/ANALYSIS This is the 6th year in a row that the District has received an award for its comprehensive annual financial report. The Certificate of Achievement is the highest form of recognition on the area of governmental accounting and financial reporting. The attainment of this award represents a significant accomplishment by the District and its staff. The preparation of a CAFR on a timely basis is a complex task, made possible only by the combined efforts of many persons. The Finance and Accounting department staff deserve special recognition. Without their efforts, the completion of the CAFR with receipt of the Certificate of Achievement for Excellence in Financial Reporting would not have been possible. PRIOR RELEVANT BOARD ACTION(S) May 16, 2013 - FY 2011-12 CAFR awarded June 14, 2012 - FY 2010-11 CAFR awarded April 14, 2011 - FY 2009-10 CAFR awarded April 1, 2010 - FY 2008-09 CAFR awarded February 24, 2009 - FY 2007-08 CAFR awarded