agenda administration/finance issues committee … · 09-04-2020 · supply and delivery of lime...

AGENDAADMINISTRATION/FINANCE ISSUES COMMITTEE MEETING

WITH BOARD OF DIRECTORS*ORANGE COUNTY WATER DISTRICT

18700 Ward Street, Fountain Valley, CA 92708 Thursday, April 9, 2020, 8:00 a.m. - Boardroom

*The OCWD Administration and Finance Issues Committee meeting is noticed as a joint meeting withthe Board of Directors for the purpose of strict compliance with the Brown Act and it provides anopportunity for all Directors to hear presentations and participate in discussions. Directors receive noadditional compensation or stipend as a result of simultaneously convening this meeting. Itemsrecommended for approval at this meeting will be placed on the April 15, 2020 Board meetingAgenda for approval.

SPECIAL NOTICE – Telephonic Accessibility for Board Members and the General Public

Due to the spread of COVID-19 the Orange County Water District will be holding its April 9 Administration Finance Committee Meeting by Zoom Webinar and will be available by either computer or telephone audio as follows:

Participation by Committee Members will be from remote locations. Public access and participation will only be available telephonically/electronically.

Computer Audio: You can join the Zoom meeting by clicking on the following link: https://zoom.us/j/280682958 Meeting ID: 280 682 958 Dial by your location +1 669 900 9128 US (San Jose)

ROLL CALL

ITEMS RECEIVED TOO LATE TO BE AGENDIZED

RECOMMENDATION: Adopt resolution determining need to take immediate action on item(s)and that the need for action came to the attention of the Districtsubsequent to the posting of the Agenda (requires two-thirds vote of theBoard members present, or, if less than two-thirds of the members arepresent, a unanimous vote of those members present).

VISITOR PARTICIPATION

Time has been reserved at this point in the agenda for persons wishing to comment for up to threeminutes to the Board of Directors on any item that is not listed on the agenda, but within the subjectmatter jurisdiction of the District. By law, the Board of Directors is prohibited from taking action onsuch public comments. As appropriate, matters raised in these public comments will be referred toDistrict staff or placed on the agenda of an upcoming Board meeting.

At this time, members of the public may also offer public comment for up to three minutes on any itemon the Consent Calendar. While members of the public may not remove an item from the ConsentCalendar for separate discussion, a Director may do so at the request of a member of the public.

CONSENT CALENDAR (ITEMS NO. 1 – 5)

All matters on the Consent Calendar are to be approved by one motion, without separate discussionon these items, unless a Board member or District staff request that specific items be removed fromthe Consent Calendar for separate consideration.

1. MINUTES OF ADMINISTRATION/FINANCE ISSUES COMMITTEE MEETING HELD MARCH 12, 2020

RECOMMENDATION: Approve minutes as presented

2. MONTHLY CASH CONTROL REPORT

RECOMMENDATION: Agendize for April 15 Board meeting: Receive and file SummaryCash and Cash Equivalents Control Reports dated March 31, 2020

3. INVESTMENT PORTFOLIO HOLDINGS REPORTS

RECOMMENDATION: Agendize for April 15 Board meeting: Receive and file theInvestment Portfolio Holdings Reports dated March 31, 2020

4. PROPOSED ORANGE COUNTY LOCAL AGENCY FORMATION COMMISION DUESRESTRUCTURING

RECOMMENDATION: Agendize for April 15 Board meeting: Authorize the District to vote for the new proposed LAFCO funding formula

5. AMENDMENT NO. 1 TO AGREEMENT WITH LHOIST NORTH AMERICA FOR THE SUPPLY AND DELIVERY OF LIME

RECOMMENDATION: Agendize for April 15 Board meeting: Authorize issuance of Amendment No. 1 to Agreement No. 1298 with Lhoist North America for supply and delivery of hydrated lime at the rate of $260.22 per ton for a period of two years with an option to renew for an additional term of two years at an amount agreed to by both parties

END OF CONSENT CALENDAR

MATTERS FOR CONSIDERATION

6. APPOINTMENT FOR ORANGE COUNTY LAFCO REGULAR SPECIAL DISTRICTMEMBER SEAT

RECOMMENDATION: Agendize for April 15 Board meeting:

1) Consider nominating a candidate for the Orange County LAFCO Regular Special District seat;

2) Designate the Board President to cast OCWD’s vote in the upcoming LAFCO Regular Special Districts position

7. TEMPORARY WAIVER OF RENT FOR DISTRICT LESSEES REQUIRED TO SHUTDOWN BUSINESS DUE TO STATEWIDE ORDER TO STAY AT HOME AND SHUTDOWN ALL NONESSENTIAL BUSINESSES

RECOMMENDATION: Agendize for April 15 Board meeting: Authorize the General Manager discretionary authority to waive the rent for District Lessees required to shut down their business while Executive Order N-33-20 is in place

INFORMATIONAL ITEMS

8. PROPOSED FY 2020-21 GENERAL FUND BUDGET

9. FULLERTON COLLEGE DRONE PROGRAM AND POTENTIAL BENEFIT TO OCWD

10. MONTHLY CASH DISBURSEMENTS REPORT

11. EMPLOYMENT STATUS REPORT

CHAIR DIRECTION AS TO WHICH ITEMS IF ANY TO BE AGENDIZED AS MATTERSFOR CONSIDERATION AT APRIL 15 BOARD MEETING

DIRECTOR’S ANNOUNCEMENTS/REPORTS

GENERAL MANAGER’S ANNOUNCEMENT/REPORT

ADJOURNMENT

Committee MembersTri Ta - ChairRoger YohDina NguyenKelly RoweAhmad Zahra

AlternatesCathy GreenSteve Sheldon Jordan BrandmanDenis BilodeauVicente Sarmiento

In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted at the guard shack entrance and in the main lobby of the Orange County Water District, 18700 Ward Street, Fountain Valley, CA and on the OCWD website not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the District Secretary. Backup material for the Agenda is available at the District offices for public review and can be viewed online at the District’s website: 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.

ADMINISTRATION AND FINANCE ISSUES COMMITTEE MEMBERS

MINUTES OF BOARD OF DIRECTORS MEETINGADMINISTRATION AND FINANCE ISSUES COMMITTEE

ORANGE COUNTY WATER DISTRICTMarch 12, 2020 @ 8:00 a.m.

Director Ta called the Administration and Finance Issues Committee to order in Conference Room C-2 in Fountain Valley, CA. The Assistant District Secretary called the roll and reported a quorumof the Committee as follows.

CONSENT CALENDARThe Consent Calendar was approved upon motion by Director Zahra seconded by Director Roweand carried [5-0] as follows. Yes - Ta, Yoh, Rowe, Zahra, Sheldon

1. Minutes of Previous Meeting

The minutes of the Administration/Finance Issues Committee meeting held February 13,2020 were approved as presented.

2. Monthly Cash Control Report

Recommended by Committee for approval at March 18 Board meeting: Receive and file Summary Cash and Cash Equivalents Control Reports dated February 29, 2020.

3. Investment Portfolio Holdings Reports

Recommended by Committee for approval at March 18 Board meeting: Receive and File the Investment Portfolio Holdings Reports dated February 29, 2020.

4. Memorandum of Understanding with California State University, Fullerton (CSUF) Auxiliary Services Corporation for the Continued Operation of The Center forDemographic Research

Recommended by Committee for approval at March 18 Board meeting: Approve andauthorize execution of Memorandum of Understanding with California State University,Fullerton Auxiliary Services Corporation for the Continued Operation of the Center forDemographic Research renewing commitment for the period of July 1, 2020 - June 30,2023; and 2) Authorize payment in the amount of $53,100.32 to California State University Fullerton Auxiliary Services Corporation, to be invoiced on a quarterly basis.

Committee MembersTri TaRoger Yoh Dina Nguyen (absent)Kelly Rowe Ahmad Zahra

AlternatesCathy Green (absent)Steve Sheldon Jordan Brandman (absent)Denis Bilodeau (teleconference) Vicente Sarmiento

OCWD staffMike Markus – General ManagerJeremy Jungreis – General CounselRandy Fick - CFO/TreasurerChristina Fuller – Assistant District Secretary

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5. Operational Efficiency Study

Recommended by Committee for approval at March 18 Board meeting: Authorizeissuance of an Agreement to Bookey Oren Global Water Technologies Ltd. in an amountnot to exceed $68,000 in accordance with its proposal dated February 20, 2020.

MATTERS FOR CONSIDERATION

6. WIFIA Interest Rate Reduction Request

CFO/Treasurer Randy Fick reported that staff recently inquired with the U.S. Environmental Protection Agency (EPA) Water Infrastructure Finance & Innovation Act (WIFIA) Program management regarding the possibility of a WIFIA loan interest rate reduction. He recalled that theDistrict entered into a $135 million WIFIA loan on July 26, 2018 for the Groundwater ReplenishmentSystem Final Expansion Project at an interest rate of 3.06%. He advised that EPA WIFIA Program management and staff have been in discussions regarding the process of a one-time re-set of theWIFIA loan interest rate. Mr. Fick stated that given the recent drop in interest rates, staff recommends pursuing this opportunity immediately and detailed the process for this one-time ratereduction.

Upon motion by Director Rowe seconded by Director Sheldon and carried [5-0], theCommittee recommended that the Board at its March 18 meeting: Adopt Resolutionauthorizing execution and delivery of an amendment to/or re-execution and delivery ofthe WIFIA Loan Agreement to lower the interest rate therein and costs not to exceed$190,000. Yes - Ta, Yoh, Rowe, Zahra, Sheldon

INFORMATIONAL ITEMS

7. Proposed FY 2020-21 Budget Replacement & Refurbishment (R&R) Fund ExpenditureReview

Mr. Fick reminded the Committee that a replacement and refurbishment model (R&R) was developed in 1998 which provides for upkeep of existing infrastructure. He reported that actual expenditures from the fund vary each year depending upon which District assets have reached the end of their useful life and need to be replaced or which assets can have their lives extended by refurbishing them. Mr. Fick reported that the District annually transfers a fixed amount of money into the R&R fund increased at 7% annually. He advised that the District is proposing to contribute $19.2 million to the R&R fund in FY 2020-21, while the District will spend $14.2 million on various replacement and refurbishment projects.

Staff members presented the following larger R&R items that are included in the proposed R&R fund:

Replacements MF Membranes for Train C ($4,383,425) Smith Basin rehabilitation ($3,042,539) Replacement of RO Membranes in 6 RO units ($2,600,000)Video Monitoring System Upgrades ($1,500,000) Talbert Extraction Well Decommissioning (BS13) ($823,419)

8. Monthly Cash Disbursements Report

There was no discussion of this item.

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CHAIR DIRECTION AS TO WHICH ITEMS IF ANY TO BE AGENDIZED AS MATTERS FOR CONSIDERATION AT MARCH 18 BOARD MEETING

It was agreed to place items No. 2-6 on the Consent Calendar for the for the March 18 Board meeting agenda.

ADJOURNMENT

There being no further business, the meeting was adjourned at 8:50 a.m.

Tri Ta, Chair

AGENDA ITEM SUBMITTAL

Meeting Date: April 9, 2020 Budgeted: N/ABudgeted Amount: N/A

To: Administration/Finance Issues Cte. Cost Estimate: N/ABoard of Directors Funding Source: N/A

Program/Line Item No.: N/AFrom: Mike Markus General Counsel Approval: N/A

Engineers Report: N/AStaff 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 ReportSummary of ReservesSummary Sources and DisbursementsSources of FundsDisbursement of Funds

RECOMMENDATION

Agendize for April 15 Board meeting: Receive and file Summary Cash and Cash Equivalents Control Reports dated March 31, 2020.

PRIOR RELEVANT BOARD ACTION(S) Monthly



To: Administration/Finance Issues Cte. Cost Estimate: N/ABoard of Directors Funding Source: N/A

Program/Line Item No: N/A From: Mike Markus General Counsel Approval: N/A

Engineers/Feasibility Report: N/AStaff Contact: R. Fick/V. Sharma CEQA Compliance: N/A

Subject: INVESTMENT PORTFOLIO HOLDINGS REPORTS

SUMMARY

The District’s monthly Investment Portfolio Holdings Report is provided for Committeereview.

Attachment(s): Investment Portfolio Holdings Reports dated March 31, 2020.

RECOMMENDATION

Agendize for April 15 Board meeting: Receive and file the Investment Portfolio Holdings Reports dated March 31, 2020.

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 of the current and previous report:

Description Prior Month Current Month

SWAP Value (in Citi’s favor) $22,609,783 $24,957,821Required Collateral $7,609,783 $9,957,821Duration/Maturity 468 Days or 1.28 years 480 Days or 1.32 yearsRate of Return/Yield 1.883% 1.816%

The yield on the one-year Treasury note as of the month end is at 0.17%; two-year at 0.23% and the five-year at 0.37%.

Fed chairman cut the Federal funds rete by 100 basis point on March 15th to curb the market volatility due to coronavirus concerns, in the range of 0.00% to 0.25%. This is the rate prime banks lend to each other.

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 3/31/2020 % NUMBER

Investment Pools

Local Agency Invest Fund (LAIF) State of California Treasury $64,884,580 (FEB rate) 1.912% (1) $64,884,580 $64,884,580 25.27%Orange County Invest Pool (OCIP) County of Orange $19,834,334 (FEB rate) 1.944% (1) $19,834,334 $19,834,334 7.72%

Swap Value Collateral

12/23/19 12/24/19 06/23/20 12/23/24 AA+/Aaa FHLMC - qtrly call on/after 06/23/20 Freddie Mac - Step $5,400,000 1.750% 2.289% $5,399,460 $5,415,552 2.11% 3134GUE22

Federal Agencies

10/08/19 10/09/19 04/08/20 10/08/21 AA+/Aaa FHLMC - qtrly call on/after 04/08/20 Freddie Mac $3,000,000 1.850% 1.850% $3,000,000 $3,000,690 3134GUGK011/18/19 11/22/19 05/22/20 02/22/23 AA+/Aaa FHLMC - qtrly call on/after 05/22/20 Freddie Mac $3,000,000 1.875% 1.875% $3,000,000 $3,005,310 3134GUSK710/22/19 10/28/19 04/17/20 04/17/23 AA+/Aaa FHLMC - qtrly call on/after 04/17/20 Freddie Mac $2,429,000 2.030% 2.030% $2,429,000 $2,430,360 3134GUKU310/24/19 10/28/19 04/16/20 10/16/23 AA+/Aaa FHLMC - qtrly call on/after 01/16/20 Freddie Mac $3,500,000 2.050% 2.050% $3,500,000 $3,501,785 3134GUHZ610/08/19 10/11/19 04/10/20 10/10/24 AA+/Aaa FHLMC - qtrly call on/after 01/10/20 Freddie Mac - Step $5,000,000 2.000% 2.500% $5,000,000 $5,001,750 3134GUGZ710/21/19 10/28/19 04/16/20 10/16/24 AA+/Aaa FHLMC - qtrly call on/after 04/16/20 Freddie Mac $5,000,000 2.050% 2.058% $4,998,000 $5,003,100 3134GUHS210/28/19 11/15/19 05/15/20 11/15/24 AA+/Aaa FHLMC - qtrly call on/after 05/15/20 Freddie Mac - Step $3,000,000 2.000% 2.453% $3,000,000 $3,004,860 3134GUNN611/26/19 11/27/19 05/19/20 11/19/24 AA+/Aaa FHLMC - qtrly call on/after 02/19/20 Freddie Mac - Step $5,000,000 1.750% 2.446% $5,000,000 $5,007,800 3134GUQS212/10/19 12/16/19 06/16/20 12/16/24 AA+/Aaa FHLMC - qtrly call on/after 03/16/20 Freddie Mac - Step $6,997,000 1.875% 2.451% $6,996,300 $7,016,802 3134GUUX612/18/19 12/23/19 06/23/20 12/23/24 AA+/Aaa FHLMC - qtrly call on/after 03/23/20 Freddie Mac - Step $5,000,000 1.900% 2.403% $4,999,500 $5,012,650 3134GUYZ712/23/19 12/24/19 06/23/20 12/23/24 AA+/Aaa FHLMC - qtrly call on/after 06/23/20 Freddie Mac - Step $100,000 1.750% 2.289% $99,990 $100,288 3134GUE2201/06/20 01/09/20 04/09/20 10/09/24 AA+/Aaa FHLMC - qtrly call on/after 04/09/20 Freddie Mac $2,500,000 2.000% 2.000% $2,500,000 $2,500,750 3134GUU8101/09/20 01/10/20 04/09/20 01/09/25 AA+/Aaa FHLMC - qtrly call on/after 04/09/20 Freddie Mac - Step $5,000,000 1.875% 2.352% $5,000,000 $5,001,500 3134GUT7501/09/20 01/13/20 04/13/20 10/13/23 AA+/Aaa FHLMC - qtrly call on/after 04/13/20 Freddie Mac $3,000,000 1.900% 1.900% $3,000,000 $3,001,320 3134GUZ5202/05/20 2/05 & 2/06 06/17/20 06/17/20 AA+/Aaa FHLMC - discount note Freddie Mac $9,113,000 1.555% 1.590% $9,060,898 $9,111,633 313396YF403/05/20 03/10/20 06/10/20 03/10/25 AA+/Aaa FHLMC - qtrly call on/after 06/10/20 Freddie Mac - Step $3,000,000 1.125% 1.622% $3,000,000 $2,997,540 3134GVFR403/19/20 03/20/20 05/28/20 02/28/23 AA+/Aaa FHLMC - qtrly call on/after 05/28/20 Freddie Mac $8,630,000 1.800% 1.714% $8,651,161 $8,642,168 28.56% 3134GVCY2

01/14/20 01/17/20 07/17/20 01/17/23 AA+/Aaa FNMA - qtrly call on/after 7/17/20 Fannie Mae $3,000,000 1.800% 1.800% $3,000,000 $3,010,920 1.17% 3135G0X40

01/27/20 01/27/20 04/14/20 04/14/20 AA+/Aaa FHLB - discount note Federal Home Loan Bank $6,050,000 1.550% 1.581% $6,029,682 $6,049,879 313384VP101/28/20 01/28/20 05/01/20 05/01/20 AA+/Aaa FHLB - discount note Federal Home Loan Bank $9,044,000 1.550% 1.592% $9,007,497 $9,043,457 313384WG001/29/20 01/29/20 04/06/20 04/06/20 AA+/Aaa FHLB - discount note Federal Home Loan Bank $8,000,000 1.550% 1.580% $7,976,578 $7,999,920 313384VF301/29/20 01/29/20 05/18/20 05/18/20 AA+/Aaa FHLB - discount note Federal Home Loan Bank $10,860,000 1.560% 1.594% $10,808,234 $10,859,023 313384WZ801/30/20 01/30/20 04/29/20 04/29/20 AA+/Aaa FHLB - discount note Federal Home Loan Bank $5,400,000 1.570% 1.602% $5,378,805 $5,392,332 313384WE501/31/20 01/31/20 04/02/20 04/02/20 AA+/Aaa FHLB - discount note Federal Home Loan Bank $4,600,000 1.560% 1.590% $4,587,641 $4,600,000 313384VB202/03/20 02/03/20 04/07/20 04/07/20 AA+/Aaa FHLB - discount note Federal Home Loan Bank $10,683,000 1.560% 1.590% $10,653,373 $10,682,893 313384VG102/11/20 02/11/20 04/23/20 04/23/20 AA+/Aaa FHLB - discount note Federal Home Loan Bank $5,136,000 1.530% 1.560% $5,120,284 $5,135,795 313384VY202/12/20 02/12/20 07/27/20 07/27/20 AA+/Aaa FHLB - discount note Federal Home Loan Bank $5,035,000 1.540% 1.577% $4,999,246 $5,033,540 313384ZX002/27/20 02/27/20 04/21/20 04/21/20 AA+/Aaa FHLB - discount note Federal Home Loan Bank $3,105,000 1.510% 1.539% $3,097,967 $3,104,876 313384VW602/27/20 02/28/20 04/13/20 04/13/20 AA+/Aaa FHLB - discount note Federal Home Loan Bank $3,031,000 1.500% 1.528% $3,025,317 $3,030,939 313384VN603/05/20 03/05/20 04/29/20 04/29/20 AA+/Aaa FHLB - discount note Federal Home Loan Bank $5,007,000 0.710% 0.723% $5,001,569 $5,014,147 313384WE503/16/20 03/16/20 08/27/20 08/27/20 AA+/Aaa FHLB - discount note Federal Home Loan Bank $6,130,000 0.520% 0.530% $6,115,479 $6,127,242 313384D6303/23/20 03/23/20 05/20/20 02/20/25 AA+/Aaa FHLB - qtrly call on/after 05/20/20 Federal Home Loan Bank $3,000,000 2.000% 1.967% $3,004,650 $3,004,080 33.13% 3130AJ5X3

12/23/19 12/30/19 12/30/20 12/30/21 AA+/Aaa FFCB - call on 12/30/20 Federal Farm Credit Bank $2,200,000 1.650% 1.650% $2,200,000 $2,221,054 3133ELFX701/14/20 01/17/20 04/17/20 01/17/23 AA+/Aaa FFCB - call on/after 04/17/20 Federal Farm Credit Bank $3,000,000 1.770% 1.791% $2,998,200 $3,001,590 2.03% 3133ELHQ0

Total Federal Agencies $166,550,000 $166,239,370 $166,651,993 64.90%

Sub Totals $256,668,914 1.816% $256,357,745 $256,786,459 100%Restricted / Debt Service Funds:

Certificate Payment Fund Series 2003A/2005B/2013A/2017AB $327,252 0.000% $327,252Cost of Issuance Series 2019CD $26,031 0.000% $26,031Interest Fund Series 2003A/2013A/2017A/2017B $536 0.000% $536GWRSFE Project Fund Series 2019AB $124,186,754 1.470% $124,186,754 Investment Revenue

$381,209,488 $381,327,033 FYTDFair Market Value Adj.

Unrestricted 329,682Restricted 1,571,209

Investment IncomeOCWD - Petty Cash $2,700 Unrestricted 3,644,133Bank Balance (unreconciled) Union Bank Gen - Interest 0.010% $85,772 Restricted 1,712,933Bank Balance (unreconciled) Wells Fargo - Checking 0.000% $2,892,368

Total per G/L 7,257,956Total $384,307,874

(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

03/31/20

LAIF , $64,884,580 , 17%

Orange County Pool ,$19,834,334 , 5%

Swap Value Collateral,$5,415,552 , 2%

Working Cash & Debt Service Funds,

$127,521,414 , 33%

Federal Agencies ,$166,651,993 , 43%

OCWD - Investment Portfolioas of March 31, 2020

Note: LAIF and Orange County Pool rates are as of February 29, 2020.

1.912% 1.944%

1.816%

0.170%

0.000%

0.500%

1.000%

1.500%

2.000%

2.500%

LAIF Orange County Pool Total OCWD Investment Return U.S. Treasury 1 Year Note

Perc

enta

ge/R

etur

n

Agencies

OCWD - Investment Return Comparision for the Month Ended 03/31/20

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

0-6 Months 7-12 Months 1-3 Years 3-4 Years 4-5 Years

Inve

stm

ents

Years

OCWD - Investment Maturities as of March 31, 2020

Investment Maturities Estimated 6 month Expenditures

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Meeting Date: April 9, 2020 Budgeted: YesBudgeted Amount: $38,431

To: Administration Finance Committee Cost Estimate: $38,431Board of Directors Funding Source: N/A


Engineers/Feasibility Report: N/AStaff Contact: J. Kennedy CEQA Compliance: N/A

Subject: PROPOSED ORANGE COUNTY LOCAL AGENCY FORMATION COMMISION DUES RESTRUCTURING

SUMMARY

The Independent Special Districts of Orange County (ISDOC) Executive Committee recommends restructuring how dues are paid to fund the Orange County Local Agency Formation Commission (LAFCO). The District’s annual dues would increase from $26,419 to $38,431. If approved by a majority of the ISDOC membership, the new formula would take effect for FY 2020-21.

Attachment(s):

Letter from ISDOC president Sandra Jacobs

Updated LAFCO dues structure spreadsheet

RECOMMENDATION

Agendize for the April 15 Board meeting: Authorize the District to vote for the new proposed LAFCO funding formula

DISCUSSION/ANALYSIS

In 2001, AB 2838 (Hertzberg) took effect and changed the way Local Agency Formation Commissions (LAFCO) operate. One of those changes affected the way LAFCO funds its net operating budget. In the past, only the county government was required to fund LAFCO, in keeping with the premise that LAFCO was a countywide regional planning organization. Under AB 2838, LAFCO remains a countywide regional planner, butresponsibility for funding the Commission is split between the county, the cities, and independent special districts.

AB 2838 (2000, Hertzberg) states that the independent special districts’ share shall be apportioned according to each district’s revenues for general purpose transactions, as reported in the most recent edition of the “Financial Transactions Concerning Special Districts” published by the Controller, or by an alternative method approved by a majority of the agencies, representing a majority of their combined populations.

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In 2001, the independent special districts of Orange County voted 13-11 (two districts did not vote) to adopt an alternative formula for apportioning the special districts share of the LAFCO budget. This formula was reaffirmed by vote of the special districts in 2005 but has not been revisited since.

In 2017, Director Al Nederhood of the Yorba Linda Water District approached the Independent Special Districts of Orange County (ISDOC) Executive Committee asking for the formula to be revisited as it has not been reviewed and/or voted on by special districts since 2005 and districts’ operating budgets have grown since then. An ad-hoc committee was formed to review AB 2838 (2000, Hetzberg) as well as propose an updated formula.The committee met numerous times throughout 2017-2020 and ultimately settled on the formula attached. It was brought to the ISDOC Executive Committee on February 4, 2020. The Executive Committee unanimously voted to bring the updated LAFCO dues reapportionment formula to the full Special Districts Selection Committee for vote.

The recommended dues calculation builds upon the methodology that was originally adopted and implemented in 2001. In developing the proposed approach, the Ad Hoc committee wished to achieve the following objectives:

Balance an agency’s ability to pay with its share of service received from LAFCO;

Limit significant cost shifts between agencies; and

Create a methodology that was dynamic and easy to administer by LAFCO staff.The committee recognized that non-enterprise agencies, which are primarily supported by property taxes, have less ability to increase revenues to account for higher dues. Thecommittee also acknowledged that larger enterprise agencies might not receive a greater share of services from LAFCO merely due to the fact that they have greater annual revenues. These two factors, along with the requirement to proportionally allocate costs under Proposition 26, guided the committee’s approach and its recommendedmethodology. The attached ISDOC document indicates the OCWD share would increase from $26,419 to $36,230. Based upon a recently revised LAFCO budget, the District’s share would increase to $38,431.The difference between the old formula and the attached new formula is an increase in the number of “factors” from five revenue ranges to nine. Factors are based on the revenue range an agency falls within (from 2017 reported revenues to the State Controller’s Office).

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For example, attached is the Updated LAFCO dues structure spreadsheet, which contains the table below with nine factors, which used to have only five factors. OCWD falls within the 2017 reported revenue range of factor 8, which increases the District’s share by $12,012 per year.

Enterprise Agencies Group Min Group Max Factor

$ - $ 999,999 0.1 $ 1,000,000 $ 1,999,999 1 $ 2,000,000 $ 4,999,999 2 $ 5,000,000 $ 9,999,999 3 $ 10,000,000 $ 19,999,999 4 $ 20,000,000 $ 39,999,999 5 $ 40,000,000 $ 79,999,999 6 $ 80,000,000 $ 159,999,999 7 $ 160,000,000 $ 239,999,999 8 $ 240,000,000 9

Some mid-sized agencies felt their dues were unfairly high because the formula (number of factors) had not been updated to reflect growing revenues and they were falling in the previous top factor of five (the same as OCWD) yet their revenues were much lower. The updated formula, with now nine factors, is still a cost savings for OCWD if the “revenue only” formula was used, as is outlined in AB 2838 (2000, Hertzberg). Under that formula, OCWD’s share of the LAFCO budget would be approximately $97,000 per year based onannual revenue reported to the State Controller’s Office, an increase of nearly $50,000 per year.

PRIOR RELEVANT BOARD ACTION(S) N/A

LAFCO Dues by Agency Annual Dues: $389,833.33

81.15 100.00% 356,800 389,833

#

District

Revenue 2017

Recommended Revenue Based

Factors

Percentage Share of Annual

Dues

Previous Dues

Estimated 2000- 2021 LAFCO

Dues

Change from Previous Year

1 Silverado-Modjeska Rec & Park $312,556 0.1 0.12% 500 480 (20) 2 Surfside Colony Stormwater $312,929 0.1 0.12% 500 480 (20) 3 Rossmoor-Los Alamitos Sewer District $479,985 0.1 0.12% 500 480 (20) 4 Surfside Colony CSD $797,129 0.1 0.12% 500 480 (20) 5 Capistrano Bay CSD $1,151,362 0.5 0.62% 2,000 2,402 402 6 Rossmoor CSD $1,377,917 0.5 0.62% 2,000 2,402 402 7 Three Arch Bay CSD $1,859,915 0.5 0.62% 2,000 2,402 402 8 Emerald Bay CSD $2,188,987 0.5 0.62% 9,775 2,402 (7,373) 9 Buena Park Library $2,362,865 0.5 0.62% 2,000 2,402 402

10 Placentia Library $2,675,129 0.5 0.62% 2,000 2,402 402 11 Orange County Cemetery $5,988,529 0.75 0.92% 2,000 3,603 1,603 12 Orange County Vector Control $13,682,024 1 1.23% 2,000 4,804 2,804 13 Sunset Beach Sanitary District $1,083,390 1 1.23% 9,775 4,804 (4,971) 14 Serrano Irrigation District $6,045,914 3 3.70% 14,794 14,412 (383) 15 East Orange County Water $6,286,331 3 3.70% 14,794 14,412 (383) 16 Midway City Sanitary $9,685,641 3 3.70% 20,078 14,412 (5,667) 17 Trabuco Canyon Water District $11,320,583 4 4.93% 20,078 19,215 (863) 18 Costa Mesa Sanitary District $12,041,937 4 4.93% 20,078 19,215 (863) 19 El Toro Water District $27,600,993 5 6.16% 20,078 24,019 3,941 20 Mesa Water $31,150,322 5 6.16% 26,419 24,019 (2,399) 21 Yorba Linda Water $35,160,485 5 6.16% 26,419 24,019 (2,399) 22 South Coast Water District $36,197,754 5 6.16% 26,419 24,019 (2,399) 23 Moulton Niguel Water District $87,485,580 7 8.63% 26,419 33,627 7,208 24 Santa Margarita Water District $104,567,483 7 8.63% 26,419 33,627 7,208 25 MWDOC $163,412,555 8 9.86% 26,419 38,431 12,012 26 OCWD $165,150,987 8 9.86% 26,419 38,431 12,012 27 Irvine Ranch Water District $215,481,000 8 9.86% 26,419 38,431 12,012

Non-Enterprise Agencies Group Min Group Max Factor

$ - $ 999,999 0.1 $ 1,000,000 $ 4,999,999 0.5 $ 5,000,000 $ 9,999,999 0.75 $ 10,000,000 1

Enterprise Agencies Group Min Group Max Factor

$ - $ 999,999 0.1 $ 1,000,000 $ 1,999,999 1 $ 2,000,000 $ 4,999,999 2 $ 5,000,000 $ 9,999,999 3 $ 10,000,000 $ 19,999,999 4 $ 20,000,000 $ 39,999,999 5 $ 40,000,000 $ 79,999,999 6 $ 80,000,000 $ 159,999,999 7 $ 160,000,000 $ 239,999,999 8 $ 240,000,000 9

<


Meeting Date: April 9, 2020 Budgeted: Yes Budgeted Amount: $840,000

To: Administration/Finance Issues Cte. Cost Estimate: $950,000 Board of Directors Funding Source: General Fund

Program/Line Item No.: 1050.54045From: Mike Markus General Counsel Approval: N/A

Engineers/Feasibility Report: N/AStaff Contact: B.Howard/M. Patel CEQA Compliance: N/A Subject: AMENDMENT NO. 1 TO AGREEMENT WITH LHOIST NORTH AMERICA

FOR THE SUPPLY AND DELIVERY OF LIME

SUMMARY

Lhoist North America has been supplying hydrated lime for the past few years. A Request for Proposal was issued to five vendors for the supply and delivery of hydrated lime for the GWRS. Two responses were received. Lhoist North America submitted a proposal committing for two years at $237 per ton and has now submitted a proposal for an additional two years at $260/22 per ton.

RECOMMENDATIONAgendize for April 15 Board meeting: Authorize issuance of Amendment No. 1 to Agreement No. 1298 with Lhoist North America for supply and delivery of hydrated lime at the rate of $260.22 per ton for a period of two years with an option to renew for an additional term of two years at an amount agreed to by both parties.

BACKGROUND/ANALYSIS

The GWRS treatment process requires a number of chemicals that are delivered in bulk, one of which is hydrated lime. OCWD staff has been using a higher purity hydrated lime provided by Lhoist North America for several years. To date the higher purity product has been very positive and has reduced the amounts of inert solids that accumulate inthe GWRS lime post treatment process. It has also lead to reduced fouling of the district’s seawater intrusion barrier injection wells.

The District installed the Tekkem lime system as an upgrade for the GWRS Initial Expansion project. This new lime system allows the lime to be more thoroughly mixed and aged before going to the saturators to stabilize the GWRS final product water. This will help produce more stable final product water by allowing more lime to be dissolved to help increasing alkalinity. The use of the higher purity hydrated lime will also enhance the overall operation of the GWRS final product water stabilization process. For the current Agreement which expires 4/30/20, a Request for Proposal for the supply and delivery of lime was sent to the following providers: Univar USA, Mississippi Lime,

Brenntag Pacific, Standard Lime, and Lhoist North America and only two responses were only received: Brenntag Pacific at $332/ton and Lhoist North America at $237/ton.

Lhoist North America has agreed to supply lime for two years at a fixed price of $260.22 per ton. The increase in price is due to a price increase in the high purity hydrated lime and the increase in cost of transportation.

Lhoist is a family-owned business and has provided excellent service over the last few years. The high purity lime works well for the GWR System. Deliveries are on time, response time is minimal, and the billing is accurate. Staff recommends extending the Agreement with Lhoist for an additional two years at a fixed price for the supply and delivery of hydrated lime.

PRIOR RELEVANT BOARD ACTION(S)

04/18/18 – R_18-4-50: Authorize issuance of Agreement with Lhoist North America for supply and delivery of hydrated lime at the rate of $237 per ton for a period of two years with an option to renew for one additional two years at an amount agreed to by both parties.

04/20/16 – R16-4-48: Authorize issuance of Agreement with Lhoist North America for supply and delivery of hydrated lime at the rate of $219 per ton for a period of two years with an option to renew for one additional year at an amount agreed to by both parties.

03/18/15 – R015-3-37: Authorize issuance of Amendment No. 1 to Agreement No. 0967 with LHoist North America for supply and delivery of hydrated lime for a period of one year at the rate of $193.35.

12/18/13 – R013-12-152: Authorize execution of Agreement with Lhoist North America for supply and delivery of hydrated lime for a period of one year at the rate of $185/ton, with an option to renew for an additional year under the same terms and conditions

09/18/13 – R13-9-122: Authorize execution of Agreement for the purchase of water treatment chemicals: Lhoist North America, at a rate of $179/ton, for supply and delivery of hydrated lime to commence October 1, 2013, through December 31, 2013, at which time quotes will be solicited to make sure District is receiving the best price

09/19/12 – R12-9-116: Authorize execution of the following agreements for the purchase of water treatment chemicals: Lhoist North America for hydrated lime at $164.20/ton

09/21/11 – R11-9 -121: Execute the following chemical contracts for supply and delivery of GWRS chemicals for a period of one year: Authorize renewal of contract with Standard Lime for lime at $168.50/ton

08/18/10 – R10-08-133: Execute the following chemical contracts: Authorize issuance of Request for Proposals for supply and delivery of Hydrogen peroxide, citric acid and lime

06/17/09 – R09-06-106: Execute the following chemical contracts for supply and delivery of GWRS chemicals with the exception of citric acid: Amendment No. 1 to Agreement No. 0439 for Standard Products Company, LLC for hydrated lime, at $172/ton


Meeting Date: Budgeted:Budgeted Amount:

To: Cost Estimate: Funding Source: Program/Line Item No:

From: General Counsel Approval: Engineers/Feasibility Report:

Staff Contact: CEQA Compliance:

Subject: APPOINTMENT FOR ORANGE COUNTY LAFCO REGULAR SPECIAL DISTRICT MEMBER SEAT

SUMMARY

i

RECOMMENDATION

DISCUSSION/ANALYSIS

PRIOR RELEVANT BOARD ACTION(S)

Local Agency Formation Commission

Orange County

2677 North Main Street, Suite 1050, Santa Ana, CA 92705 (714) 640-5100 FAX (714) 640-5139

http://www.oclafco.org

REGULAR MEMBERS

CHAIR Cheryl Brothers City Member

VICE CHAIR Douglass Davert Special District Member

IMMEDIATE PAST CHAIR Derek J. McGregor Public Member

Lisa Bartlett County Member

Dr. Allan Bernstein City Member

James Fisler Special District Member

Donald P. Wagner County Member

ALTERNATES

Wendy Bucknum City Member

Kathryn Freshley Special District Member

Lou Penrose Public Member

Michelle Steel County Member

STAFF

Carolyn Emery Executive Officer

March 2 , 2020

TO: Independent Special District Presiding Officer c/o Clerk of the District

FROM: Carolyn Emery, Executive Officer

SUBJECT: Appointment Process and Nomination Period for the Orange County LAFCO Regular Special District Member Seat

The nomination period for the Orange County LAFCO (OC LAFCO) Regular Special District Member seat is now open. The OC LAFCO Executive Officer will accept nominations for the regular special district seat from March 2 through May 8, 2020. The current term for the seat expires June 30, 2020.

The appointment process for the OC LAFCO special district seat is governed by Government Code Section 56332 and the Independent Special District Selection Committee Bylaws. In accordance with the statute and the Committee’s Bylaws, the appointment process is conducted by mailed ballot and attached to this notification are the following:

A. The “Declaration of Qualification to Vote” for designating the authorized regular voting member and the alternate voting member of your district, for this appointment process. This form must be returned to OC LAFCO no later than 3:00 PM on Friday, May 8, 2020. Please note that if OC LAFCO does not receive the form by that date, your district will be ineligible to vote.

B. The “2020 Nomination Form” for submitting a candidate’s name for the Regular Special District seat. If your district is nominating a candidate for the OC LAFCO Regular Special District Member seat, the form must be filled out completely and returned to OC LAFCO no later than 3:00 PM on Friday, May 8, 2020. Candidate resumes or other supplemental information may be attached to the nomination form and these materials will be distributed with the ballots.

Appointment Process and Nomination Period - OC LAFCO Regular Special District Member Seat March 2 , 2020 Page 2 of 3

The Declaration and nomination form may be returned to OC LAFCO at any of the following:

Email: [email protected]

Mail: Orange County LAFCO 2677 North Main Street, Suite 1050 Santa Ana, CA 92705 Attn: Cheryl Carter-Benjamin, Commission Clerk

FAX: (714) 640-5139 Attn: Cheryl Carter-Benjamin, Commission Clerk

For your reference, a timeline of key dates for the appointment process is shown below:

Please note, that Orange County LAFCO extends our wishes of good health and safety to your agency and ask that if the extraordinary circumstances of Coronavirus (COVID-19) may impact your agency’s ability to respond or participate in this process in accordance with the prescribed timeline above, please contact me directly at (714) 640-5100 or by email at [email protected].

Appointment Process Schedule for OC LAFCO Regular Special District Seat Expiring June 30, 2020

DATE EVENT

March 2 , 2020

OC LAFCO Executive Officer emails nomination form and Declaration of Qualification to Vote to each independent special district presiding officer (c/o the clerk of the district) and general manager.

May 8, 2020 (by 3:00 PM)

Submission of a nomination (if applicable) and Declaration of Qualification to Vote are due to OC LAFCO by 3:00 p.m.*

May 18, 2020 Ballot is emailed to each special district presiding officer or designee (c/o the clerk of the district).

June 22, 2020 (by 3:00 PM) Ballots are due to OC LAFCO by 3:00 p.m.

June 29, 2020 OC LAFCO staff (or designee) tabulates ballots and announces results.

July 8, 2020 Oath of office administered at the Commission Regular Meeting. * Pursuant to Government Code Section 56332(f)(2), at the end of the nominating period,if only one candidate is nominated for the vacant seat, that candidate shall be deemed appointed.

Appointment Process and Nomination Period - OC LAFCO Regular Special District Member Seat March 2 , 2020 Page 3 of 3

Other questions may be directed to our Commission Clerk Cheryl Carter-Benjamin at (714) 640-5100 or by email at [email protected].

Sincerely,

Carolyn Emery Executive Officer

Attachments:

A. Declaration of Qualification to Vote B. 2020 Nomination Form – Regular Special District Member

cc: Special District General Managers

DECLARATION OF QUALIFICATION TO VOTETo the Presiding Officer Vicente Sarmiento

c/o Clerk of the DistrictJanice Durant ([email protected])

Orange County Water District18700 Ward Street

Fountain Valley, CA 92708

I, ___________________________________,* hereby attest that _____________________________**has been authorized by the Board of _____________________________________to vote in the Orange County Special District Selection Committee election as the regular voting member.

The Board also designated _________________________ **as the alternate voting member.

Name and Title*: _____________________________________

Signature*: ________________________________

Date: __________________________*Declaration MUST be signed by either Board President or Board Secretary

** Must be a member of the Board

Completed forms must be received by OC LAFCO by 3 PM, Friday, May 8, 2020.Forms must be delivered to OC LAFCO by:

(1) Email at: [email protected], or (2) Mail at: Orange County LAFCO 2677 North Main Street, Suite 1050 Santa Ana, CA 92705 Attn: Cheryl Carter-Benjamin, or (3) FAX at: (714) 640-5139, Attn: Cheryl Carter-Benjamin

2020 NOMINATION FORMCandidates for the Orange County Local Agency Formation Commission (OC LAFCO)

CANDIDATE INFORMATION FOR REGULAR SPECIAL DISTRICT MEMBER:

NAME: _____________________________________________________________

TITLE: ______________________________________________________________

DISTRICT: ______________________________________________________________

Check box if resume or statement of qualifications is attached.

SPECIAL DISTRICT SELECTION COMMITTEE MEMBER SUBMITTING NOMINATION(Must be the presiding officer or a designated alternate board member.)

NAME: ___________________________________ DATE: _____________________

SIGNATURE:

TITLE:

DISTRICT:

A resume or other supplemental information about the candidate may be included and will be distributed with the ballots. Completed nomination form and supplemental information may be returned to OC LAFCO by:

1. Email at: [email protected], or2. Mail at: Orange County LAFCO

2677 North Main Street, Suite 1050Santa Ana, CA 92705Attn: Cheryl Carter-Benjamin, or

3. Fax at: (714) 640-5139, Attn: Cheryl Carter-Benjamin

All forms and supplemental information must be received by OC LAFCO by 3:00 p.m. on Friday,May 8, 2020. Nomination forms or candidate information received after that deadline will not be considered.

Re-Elect James R. Fisler to OC LAFCO

* KNOWLEDGE * EXPERIENCE * COMMITMENT *

James R. Fisler – Mesa Water District Director

• Orange County Local Agency Formation Commission (OC LAFCO) Special District Commissioner, 2019-present

• OC LAFCO Special District Alternate Commissioner, 2011- 2019

• Independent Special Districts of Orange County (ISDOC) Executive Committee – Immediate Past President, 2018- present; President, 2016-2018

• Mesa Water District Director, 2009-present; President, 2012-2014

• Mesa Water District Improvement Corporation President, 2010-2012 & 2017-present; Engineering & Operations Committee Chairman; Legislative & Public Affairs Committee Vice Chairman

• Association of California Water Agencies (ACWA) Local Government Committee, 2016-2019

• County of Orange Housing & Community Development Commission Vice Chair, 2019- present, Commissioner 2017-present (appointed by the Orange County Board of Supervisors)

• City of Costa Mesa

o Planning Commissioner & Vice Chairman

o Parks & Recreation Commissioner

o Finance Committee Chairman; Finance & Pension Advisory Committee Chairman

o Residential Rehabilitation & Redevelopment Committee

o Citizen’s Police Academy graduate; Neighbors for Neighbors volunteer

• Costa Mesa Chamber of Commerce Board Member

• Costa Mesa Senior Center Board Member

• Friends of Costa Mesa Libraries Board Member

As your advocate at OC LAFCO over the past 8+ years, James R. Fisler has been a strong leader

and voice for Special Districts. Director Fisler is grateful to have been elected to serve as your

representative at both OC LAFCO and ISDOC, where he reduced member dues by 75 percent.

With a passion for public policy and community service, Director Fisler is committed to representing

the mutual interests of Orange County’s water, wastewater, sanitary, cemetery, library, vector

control, recreation and parks, and other special districts that provide services to their communities.

Director Fisler is a Broker/Associate with Torelli Realty in Mesa Verde. Prior to that, he was a

regional manager for Nordstrom for over 12 years. Both positions have equipped him with the skills

and expertise to provide outstanding customer service in advocating for your interests in alignment

with the shared interests of Orange County’s Special Districts and those we serve.

Commissioner Fisler would be honored to receive your vote to re-elect him as an Orange County

Special Districts representative on OC LAFCO.

RE: Declaration of Candidacy of James R. Fisler for Re-Election to

OC LAFCO representing the Special Districts of Orange County

Greetings,

It has been my honor to serve you on the Orange County Local Agency Formation Commission (OC

LAFCO) as your Special District Commissioner. In July 2019, I was elected by Orange County’s

Independent Special Districts to the OC LAFCO voting member seat. Previously, I was elected to

serve as the Special District Alternate Commissioner by the Independent Special Districts Selection

Committee in 2011, and re-elected in 2014 and 2018.

During my service as Voting and Alternate Commissioner, I have sat on the dais and participated

fully in all OC LAFCO discussions on all agenda items, and thus have broad knowledge of the OC

LAFCO process and experience as a Commissioner. As such, I am the most experienced and

qualified candidate.

I have been an effective Commissioner at OC LAFCO who has positively influenced decisions that

have benefitted and protected special districts and local control, while also safeguarding the

interests of over 3 million Orange County residents.

I have been a strong advocate for the Special Districts of Orange County on OC LAFCO, as well as

at the Independent Special Districts of Orange County (ISDOC) where I served as President in 2017

and 2018, and where I reduced member dues by 75 percent.

I have personally visited all of the Independent Special Districts in Orange County multiple times

over the past 8+ years. It has been a distinct honor to serve Orange County’s Special Districts as a

full voting member at OC LAFCO to ensure the economical, effective, and efficient delivery of

government services to the public.

As a voice for Special Districts serving the communities of Orange County, I have delivered on my

promise to you that OC LAFCO would be more of a facilitator than an initiator of actions.

Additionally, I remain committed to enhancing communications and information-sharing with you.

This is now reflected in OC LAFCO’s work-plan.

Lastly, to achieve my goal of providing transparency and strong leadership for you at OC LAFCO, I

distributed in January my inaugural edition of The Special Districts Dialogue newsletter which

provided an update on the Commission’s recent activities relevant to Special Districts. I hope you

enjoyed the newsletter and be on the lookout for future editions.

Feel free to contact me at 714.423.4351 with any questions or requests regarding OC LAFCO, and

please review my statement of qualifications above. Thank you for your consideration of my

knowledge, experience, and commitment, and I hope I will receive your vote for this very important

seat.

Sincerely,

James R. Fisler

OC LAFCO Commissioner and Mesa Water Director


Meeting Date: April 9, 2020 Budgeted: Yes Budget Amount: $33,827 To: Administration/Finance Issues Cte Monthly Revenue: $(33,827)

Board of Directors Funding Source: N/A Program/Line Item No.: N/AFrom: Mike Markus General Counsel Approval: N/A Engineers/Feasibility Report: N/AStaff Contact: B. Dosier / D. Park CEQA Compliance: N/A

Subject: TEMPORARY WAIVER OF RENT FOR DISTRICT LESSEES REQUIRED TO SHUT DOWN BUSINESS DUE TO STATEWIDE ORDER TO STAY AT HOME AND SHUT DOWN ALL NONESSENTIAL BUSINESSES

SUMMARY

In March, an Executive order was issued by the State of California directing all residents stay home, except as needed to maintain continuity of operations of essential services, due to health concerns stemming from the novel coronavirus (COVID-19). In accordance with this order, Corona Recreation, Inc., Elaine Raahauge DBA Mike Raahauge Shooting Enterprises,Inc. (MRSE) and NSM Golf, LLC DBA The Islands Golf Center (NSM Golf) have temporarily shut down operations. To offset many of their other expenses, Corona Recreation, MRSEand NSM Golf have requested a temporary waiver of rent while this order is in place.

Attachment(s): Letter from Corona Recreation dated March 30, 2020Letter from MRSE dated March 30, 2020Letter from NSM Golf dated March 31, 2020

RECOMMENDATION

Agendize for April 15 Board meeting: Authorize the General Manager discretionary authority to waive the rent for District Lessees required to shut down their business while Executive Order N-33-20 is in place

BACKGROUND/ANALYSIS

On March 19, 2020, Governor Newsom issued Executive Order (N-33-20) directing all residents immediately heed current State public health directives to stay home due to health concerns stemming from COVID-19, except as needed to maintain continuity of operations of essential critical infrastructure sectors as the State Public Health Officer may designate as critical to protect health and well-being of all Californians.

In accordance with this order, Corona Recreation, MRSE and NSM Golf have temporarily shut down operations until otherwise directed by the state. At this time, these District Lessees continue to pay their employees and have other business expenses that continue to mount. As such, Corona Recreation (monthly rent $6,817), MRSE (monthly rent $17,502)

and NSM Golf (monthly rent $9,508) have requested a temporary suspension of rent, until the order is lifted, to help offset the revenue lost from their business closures. Total monthly rent for these three lessees is $33,827.

There may be additional lessees that request a waiver of their rent due to the order. Staff is recommending that the Board authorize the General Manager discretionary authority to waivethe rent for District Lessees having to temporarily shut down their businesses while the Executive Order is in place.

PRIOR RELEVANT BOARD ACTION(S): N/A

March 30, 2020

Orange County Water District Attn: Daniel Parks18700 Ward StreetFountain Valley, CA 92708

Dear Daniel,

The effects of the Covid19 virus have presently crippled operations at Mike Raahauge Shooting Enterprises. The range has been closed since March 19th. While we remain optimistic, our lease obligations to the district seem likely to soon drain available cash.

Accordingly, we are reaching out to find a solution to this issue so that we can resolve any issues before they arise. Please feel free to contact me to discuss this matter.

Thank you for your consideration,

Pat RaahaugeCindy Raahauge ShenbergerMike Raahauge Shooting Ent.

MIKE RAAHAUGE SHOOTING ENTERPRISES 14995 River Rd., Corona, CA 92880

raahauges.com [email protected]: (951) 848-7472 Fax: (951) 371-6853


Meeting Date: April 9, 2020 Budgeted: N/ABudgeted Amount: $71.1 million

To: Administration/Finance Issues Cte. Cost Estimate: $71.1 millionBoard of Directors Funding Source: General Fund


Engineers/Feasibility Report: N/AStaff Contact: R. Fick CEQA Compliance: N/A

Subject: PROPOSED FY 2020-21 GENERAL FUND BUDGET

SUMMARY

The proposed fiscal year (FY) 2020-21 General Fund budget totals $71.1 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 SummaryGeneral Fund Budget ComparisonGeneral Fund Budget Cost Center DetailPresentation

RECOMMENDATION

Informational

BACKGROUND/ANALYSIS

The proposed FY 2020-21 General Fund budget totals $71.1 million which provides funds for operating 21 cost centers. This represents a $2.0 million decrease from the current FY 2019-20 budget or a decrease of 2.74%. The decrease is primarily due to two costs: (1) purchased services, and (2) maintenance structure & improvements.

The Table 1 below shows the breakdown of the proposed $71.1 million FY 2020-21General Fund Budget by major cost category compared to the FY 2019-20 General Fund Budget.

Table 1Proposed FY 2020-21 Budget versus FY 2019-20 Budget

Expense Category FY 2020-21ProposedBudget

FY 2019-20Budget

DifferenceOver/(Under)

% Increased or(Decreased)

Wages & Benefits $34,584,241 $35,162,005 $(577,764) -1.64%Utilities $13,356,737 $13,493,737 $(137,000) -1.02%Purchased Services $5,843,150 $6,990,558 $(1,147,408) -16.41%Chemicals $5,783,000 $5,573,500 $209,500 3.76%

MaintenanceStructures & Improvements

$4,021,500 $4,948,500 $(927,000) -18.73%

Purchased Supplies $3,313,690 $3,044,850 $268,840 8.83%MaintenanceEquipment

$1,563,400 $1,554,165 $9,235 0.59%

Agreements, License, Permits

$817,803 $817,803 $11,277 1.40%

Other $1,012,300 $892,512 $119,788 13.42%Memberships, Training, Conferences

$773,064 $621,717 $151,347 24.34%

Total (rounded) $71,095,000 $73,099,000 $(2,005,000) -2.74%

The following figure provides a history of the General Fund Budget cost over the last eight years.

The attached documents provide a summary and comparison of the proposed budget. Additionally, the budget details for the 21 cost centers are attached.

Section 11 Cost Center Details

Detail Cost Center General Fund Budget Acronyms and Abbreviations

Orange County Water District 11-1 FY 2020-21 Budget Report

Orange County Water District FY 2020-21 Budget Report11-7

Fiscal Year 2020-21 General Fund Budget Review

Administration/Finance Issues CommitteeApril 9, 2020

FY 2020-21 Budget ScheduleDate Meeting Topic

December 12, 2019 Admin/Finance Cte Budget preparation overview and kick-off

January 9, 2020 Admin/Finance Cte Provide preliminary BPP and RA estimatesMarch 4, 2020 Board Present Draft Budget

March 11, 2020 Water Issues Cte Review Water BudgetReview Water Reserves

March 11, 2020 Producers Present Draft Budget

March 12, 2020 Admin/Finance Cte Review R&R Budget

April 8, 2019 Water Issues Cte Review CIP BudgetApril 9, 2019 Admin/Finance Cte Review General Fund Budget

April 15, 2019 Board Public Hearing to set RA & BPPConsideration to approve budget

FY 20-21 Budget Components Expenditures - $230.3 million

General Fund Budget SummaryDivided into 21 Cost Centers to provide greater detail and clarityIncludes Salaries, Supplies, and ServicesOperations:

• GWRS• Green Acres Project• Talbert and Alamitos Seawater Barriers• Recharge Operations• Prado Wetlands• Laboratory/Water Quality• Administration/Accounting/HR/Purchasing• Hydrogeology/Engineering• Natural Resources/Planning• Property Management

General Fund• Includes all District

operations• $2.0 million increase• Natural Resources -

decrease in maintenance (Arundo removal)

• Increase in Headcount –220.5 to 221.5

Millions

$73.1 $71.1

$0$10$20$30$40$50$60$70$80

Fiscal Year Ending

General Fund Budget

• Originally submitted General Fund budget to the General Manager was $73.3 million – Reduced to $71.1

• Merit budgeted at 3% and no COLA (cost of living adjustment) budgeted

• General Manager must approve all job replacements

Budget Comparison by Expense Category

Expense CategoryFY 2020-21

Proposed Budget FY 2019-20

BudgetDifference

Over (Under) % Increased or

Decreased

Wages & Benefits 34,584,241 35,162,005 (577,764) -1.64%

Utilities 13,356,737 13,493,737 (137,000) -1.02%

Purchased Services 5,843,150 6,990,558 (1,147,408) -16.41%

Chemicals 5,783,000 5,573,500 209,500 3.76%Maintenance – Structures & Improvements 4,021,500 4,948,500 (927,000) -18.73%

Purchased Supplies 3,313,690 3,044,850 268,840 8.83%

Maintenance - Equipment 1,563,400 1,554,165 9,235 0.59%

Other 1,012,300 892,512 119,788 13.42%Interagency Agreements, Licenses, Permits 843,450 817,803 25,647 3.14%

Training, Conferences & Memberships 773,064 621,717 151,347 24.34%Total (rounded) $71,095,000 $73,099,000 (2,005,000) -2.74%

Budget Comparison by Cost Center

CostCenter # Cost Center

FY 2020-21 Proposed Budget

FY 2019-20 Budget

DifferenceOver (Under)

% Increased or Decreased

1010 General Manager’s Office 2,047,680 2,318,826 (271,147) -11.69%

1012 Public Affairs 2,116,801 2,062,563 54,238 2.63%

1016 Information Services 2,734,730 2,705,809 28,921 1.07%

1018 Board Administration 1,631,008 1,612,412 18,596 1.15%

1022 Purchasing 753,224 757,486 (4,262) -0.56%

1024 Finance 2,122,108 2,124,686 (2,578) -0.12%

1030 Human Resources 981,330 969,302 12,027 1.24%

1034 Safety & Risk Management 1,559,264 1,578,281 (19,016) -1.20%

1036 Water Quality 2,103,032 2,061,431 41,602 2.02%

1038 Laboratory 6,066,662 5,911,905 154,757 2.62%

Budget Comparison by Cost Center (cont.)

CostCenter # Cost Center

FY 2020-21 Proposed Budget

FY 2019-20Budget

DifferenceOver (Under)

% Increased or Decreased

1040 Research & Development 1,560,229 1,768,080 (207,851) -11.76%

1044Planning and Watershed Management 1,526,155 2,180,300 (654,145) -30.00%

1045 Local Resources 333,610 333,224 386 0.12%

1046 Regulatory Affairs 774,858 546,331 228,527 41.83%

1050 Water Production/GWRS 32,220,625 31,927,900 292,725 0.92%

1060 Recharge Operations 4,246,317 4,482,797 (236,480) -5.28%1062 Wetland Operations 561,594 537,674 23,920 4.45%

1069 Property Management 273,587 248,368 25,218 10.15%

1070 Engineering 908,089 1,096,984 (188,895) -17.22%

1075 Hydrogeology 4,165,522 4,349,064 (183,542) -4.22%

1080 Natural Resources 2,408,106 3,525,924 (1,117,818) -31.70%Total (rounded) 71,095,000 $ 73,099,000 (2,005,000) -2.74%

Recommendation

Receive Board Comments


Meeting Date: April 9, 2020 Budgeted: N/A Budget Amount: N/A To: Administration/Finance Issues Cte Annual Revenue: N/A

Board of Directors Funding Source: N/A Program/Line Item No.: N/AFrom: Mike Markus General Counsel Approval: N/A Engineers/Feasibility Report: N/AStaff Contact: B. Dosier / D. Park CEQA Compliance: N/A

Subject: FULLERTON COLLEGE DRONE PROGRAM AND POTENTIAL BENEFIT TO OCWD

SUMMARY

At the February 28 property meeting, Professor Jay Seidal of Fullerton College presented an overview of the Fullerton College Drone Program to the Committee and inquired about work and training opportunities for his students at OCWD. This collaborative partnership will provide students an opportunity to train on OCWD land, and in return, OCWD will receive data gathered from field training and other related drone services as requested. The Committee instructed staff to report back with a list of potential drone services that would benefit OCWD.

Attachment(s): N/A

RECOMMENDATION

Informational

BACKGROUND/ANALYSIS

At the February 28 property meeting, Professor Jay Seidel, head of the drone technology program at Fullerton College (Fullerton Drone Lab), presented to the committee about the Fullerton Drone Lab and inquired about work and training opportunities for his students at OCWD. Professor Seidel explained, the Fullerton Drone Lab trains students in drone piloting and collecting data used for various applications such as area mapping, vegetation and land studies, infrastructure inspections, and 3D land imaging. Additionally, the program will also use a LiDAR (Light Detection and Ranging) drone system for future applications.

Professor Seidel further explained he is seeking opportunities for his students in the form of internships and apprenticeships with OCWD, and/or provide his students an opportunity for fieldwork to collect data for training purposes. In return, the District could use all the data gathered during field training classes on OCWD land and be provided other related drone services as requested.

At the conclusion of its meeting, the Committee noted that OCWD could potentially have numerous uses for the drone program and directed staff to prepare a list of potential drone services that would benefit OCWD. Staff has compiled the following list per department:

Engineering Department

Topographic mapping of all OCWD facilities implementing the use of ground control points with the dronesVolume calculations for recharge basins (stage-storage)Aerial photography for public relations, natural resources, board/public presentations, etc.3D models/imagery of infrastructureConstruction progress photos and volume calculations for progress paymentsVegetation species and boundary mapping

Planning & Natural Resources Department

Develop database/catalogue of images of OCWD facilities in Prado, once each year or at an appropriate interval, for purposes of documenting facilities that may be damaged in a flood (documentation will help with FEMA reimbursement)Develop imagery of Prado Basin vegetation using visible imagery, multi-spectral (e.g., infrared and others); and LIDAR imagery each year for purposes of documenting vegetation health and to assess changes in vegetationUse LIDAR data to address changes in topography year to year (may be limited in areas with thick vegetation)

Operations Department

Aerial images and content tables of the basins when they are drained and emptied. (Some basins are drained twice a year and others are drained once every five years)

PRIOR RELEVANT BOARD ACTION(S):

N/A


Meeting Date: April 9, 2020 Budgeted: YesBudgeted Amount: N/A

To: Administration/Finance Issues Cte. Cost Estimate: N/A Board of Directors Funding Source: All

Program/Line Item No. N/AFrom: Mike Markus General Counsel Approval: N/A

Engineers/Feasibility Report: N/AStaff Contact: R. Fick/M. Ochoa CEQA Compliance: N/A

Subject: MONTHLY CASH DISBURSEMENTS 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 IssuesCommittee meetings.

Attachment(s): Cash Disbursements Reports for the period February 27, 2020 – March25, 2020

RECOMMENDATION

Informational BACKGROUND/ANALYSIS

At the request of the Committee, the Cash Disbursements reports are included in detail for review at Administration/Finance Issues Committee meeting. They are also included inthe Board packet to be ratified. Checks numbered with a series beginning with an 8 represent normal automated system vendor check payments, checks numbered with an 80 represent vendor payments via single use account, and checks numbered with a series beginning with a 9 are manual checks or wire transfer disbursements

PRIOR RELEVANT BOARD ACTION(S): Monthly



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/AEngineers/Feasibility Report: N/A

Staff Contact: S. Dosier/ K. Lawson CEQA Compliance: N/A

Subject: EMPLOYMENT STATUS REPORT

SUMMARY

The Employment Status Report is provided as an informational item quarterly to the Board for review. This report is for the period ending March 2020.

Attachment(s): Employment Status Report dated March 31, 2020

RECOMMENDATION

Informational

PRIOR BOARD ACTION(S)

Quarterly

DepartmentDept

#Department Total

Head Count Filled Positions Open Positions

Interns .5 Temps .5 LTC 1.0

Not counted towards Head Count

GM's Office 1010 2 2 0 0

Public Affairs 1012 8 7 1 1

Info Services 1016 10 9 1 0.5

Board Admin 1018 6 6 0 0

Purchasing 1022 6 6 0 0

Finance 1024 13 13 0 1

Human Resources 1030 5 5 0 0

Risk & Safety 1034 2 2 0 0.5

Water Quality 1036 12 12 0 0

Laboratory 1038 32 32 0 4

Research & Development 1040 7 7 0 5.5

Planning & Watershed Mgmt 1044 4 4 0 0

Local Resources 1045 1 1 0 0

Regulatory Affairs 1046 2.5 1.5 1 0

Water Production 1050 62 62 0 1

Forebay 1060 20 19 1 0

Prado 1062 2 2 0 0

Property Management 1069 1 1 0 0

Engineering 1070 8 8 0 0.5

Hydrogeology 1075 13.5 13.5 0 1.5

Natural Resources 1080 3.5 3.5 0 2TOTALS 216.5 4 17.5OCWD Total Headcount 220.5

All available information as of : 3/31/20

EMPLOYMENT STATUS REPORTAPPROVED BUDGETED POSITIONS

agenda administration/finance issues committee … · 09-04-2020 · supply and delivery of lime...

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