AGENDA ADMINISTRATION/FINANCE ISSUES COMMITTEE MEETING WITH BOARD OF DIRECTORS* ORANGE COUNTY WATER DISTRICT 18700 Ward Street, Fountain Valley, CA 92708 Thursday, February 14, 2019, 8:00 a.m.-Conference Room C-2 *The OCWD Administration and Finance Issues Committee meeting is noticed as a joint meeting with the Board of Directors for the purpose of strict compliance with the Brown Act and it provides an opportunity for all Directors to hear presentations and participate in discussions. Directors receive no additional compensation or stipend as a result of simultaneously convening this meeting. Items recommended for approval at this meeting will be placed on the February 20, 2019 Board meeting Agenda for approval. ROLL CALL ITEMS RECEIVED TOO LATE TO BE AGENDIZED RECOMMENDATION: Adopt resolution determining need to take immediate action on item(s) and that the need for action came to the attention of the District subsequent to the posting of the Agenda (requires two-thirds vote of the Board members present, or, if less than two-thirds of the members are present, a unanimous vote of those members present). VISITOR PARTICIPATION Time has been reserved at this point in the agenda for persons wishing to comment for up to three minutes to the Board of Directors on any item that is not listed on the agenda, but within the subject matter jurisdiction of the District. By law, the Board of Directors is prohibited from taking action on such public comments. As appropriate, matters raised in these public comments will be referred to District staff or placed on the agenda of an upcoming Board meeting. At this time, members of the public may also offer public comment for up to three minutes on any item on the Consent Calendar. While members of the public may not remove an item from the Consent Calendar for separate discussion, a Director may do so at the request of a member of the public. CONSENT CALENDAR (ITEMS NO. 1 – 6) All matters on the Consent Calendar are to be approved by one motion, without separate discussion on these items, unless a Board member or District staff request that specific items be removed from the Consent Calendar for separate consideration. 1. MINUTES OF ADMINISTRATION/FINANCE ISSUES COMMITTEE MEETING HELD JANUARY 10, 2019 RECOMMENDATION: Approve minutes as presented 2. MONTHLY CASH CONTROL REPORT RECOMMENDATION: Agendize for February 20 Board meeting: Receive and file Summary Cash and Cash Equivalents Control Reports dated January 31, 2019 3. INVESTMENT PORTFOLIO HOLDINGS REPORTS RECOMMENDATION: Agendize for February 20 Board meeting: Receive and file the Investment Portfolio Holdings Reports dated January 31, 2019 4. 3-YEAR EXTENDED WARRANTY PURCHASE FOR HYBRID BULLDOZERS: TL-36, TL-37 AND TL-39 RECOMMENDATION: Agendize for February 20 Board meeting: Authorize purchase of Caterpillar-issued, 3-year extended warranties for hybrid bulldozers: TL-36, TL-37 and TL-39 5. LABORATORY TECHNICIAN FOR RESEARCH & DEVELOPMENT DEPARTMENT RECOMMENDATION: Agendize for February 20 Board meeting: Authorize recruitment of an R&D Laboratory Technician to be filled as a Limited Term Employee 6. EXTENSION OF 2003A LETTER OF CREDIT RECOMMENDATION: Agendize for February 20 Board meeting: 1) Authorize the preparation and execution of documents necessary to extend the current Letter of Credit and Reimbursement Agreement with Citibank, N.A. for the 2003A variable rate debt for a term of 2 years consistent with the offer provided by Citibank, and 2) Authorize payment for costs of issuance not to exceed $12,500 END OF CONSENT CALENDAR MATTERS FOR CONSIDERATION 7. WIFIA LOAN STRUCTURING OPPORTUNITY RECOMMENDATION: Agendize for February 20 Board meeting: 1) Authorize issuance of Request for Proposals for investment banking/underwriting services for the issuance tax-exempt short-term obligations; 2) Authorize issuance of Request for Proposals for investment advisory services; 3) Authorize engaging Stradling, Yocca as Bond Counsel and Fieldman, Rolapp & Associates as Municipal Advisor and 4) Authorize the preparation of documents for future issuance of tax-exempt short-term obligations pending further action by the Board 8. CONTRACT NO. FV-2018-1, VIDEO MONITORING SYSTEM AMEND ENGINEERING SERVICES AGREEMENT WITH TRC COMPANIES RECOMMENDATION: Agendize for February 20 Board meeting: Authorize issuance of an Amendment to Agreement No. 1281 with TRC for Video Monitoring System Replacement Project Consulting and Construction Support Services for the amount not to exceed $124,646 9. AUTHORIZE PROPOSED USE OF FUNDS RECEIVED FROM SALE OF BALL ROAD BASIN RECOMMENDATION: Agendize for February 20 Board meeting: Authorize the District CFO/Treasurer to contribute $15 million to the District’s PARS OPEB trust by December 31, 2019, and paydown the outstanding taxable commercial paper debt by $8.2 million 10. BUDGET TO ACTUAL REPORT FOR SECOND QUARTER FY 2018–19 RECOMMENDATION: Agendize for February 20 Board meeting: Receive and file the Budget to Actual Report for Second Quarter of Fiscal Year 2018-19 ending December 31, 2018 11. RATIO ANALYSIS – FIRST HALF OF FY 2018-2019 RECOMMENDATION: Agendize for February 20 Board meeting: Receive and file the Ratio Analysis Report for FY 2018-19 Second Quarter ending December 31, 2018 INFORMATIONAL ITEM 12. MONTHLY CASH DISBURSEMENTS REPORT CHAIR DIRECTION AS TO WHICH ITEMS IF ANY TO BE AGENDIZED AS MATTERS FOR CONSIDERATION AT FEBRUARY 20 BOARD MEETING DIRECTOR’S ANNOUNCEMENTS/REPORTS GENERAL MANAGER’S ANNOUNCEMENT/REPORT ADJOURNMENT ADMINISTRATION AND FINANCE ISSUES COMMITTEE MEMBERS Committee Members Bruce Whitaker - Chair Tri Ta - Vice Chair Roger Yoh Dina Nguyen Kelly Rowe Alternates Cathy Green Steve Sheldon Jordan Brandman Denis Bilodeau Vicente 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. 1 MINUTES OF BOARD OF DIRECTORS MEETING ADMINISTRATION AND FINANCE ISSUES COMMITTEE ORANGE COUNTY WATER DISTRICT January 10, 2019 @ 8:00 a.m. Director Whitaker 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 quorum of the Committee as follows. Committee Members OCWD staff Bruce Whitaker Mike Markus - General Manager Roger Yoh (absent) Jeremy Jungreis – General Counsel Dina Nguyen (absent) Randy Fick - CFO/Treasurer Cathy Green Christina Fuller - Assistant District Secretary Steve Sheldon Alternates Tri Ta Denis Bilodeau (absent) Kelly Rowe Jordan Brandman (absent) Vicente Sarmiento CONSENT CALENDAR The Consent Calendar was approved upon motion by Director Ta, seconded by Director Green and carried [4-0]. Ayes- Whitaker, Green, Ta, Rowe 1. Minutes of Previous Meeting The minutes of the Administration/Finance Issues Committee meeting held December 13, 2018 were approved as presented. 2. Monthly Cash Control Report Recommended by Committee for approval at January 16 Board meeting: Receive and file Summary Cash and Cash Equivalents Control Reports dated December 31, 2018. 3. Investment Portfolio Holdings Reports Recommended by Committee for approval at January 16 Board meeting: Receive and File the Investment Portfolio Holdings Reports dated December 31, 2018. 4. Surplus of Equipment, Vehicles, Miscellaneous Furniture and Computer Hardware Recommended by Committee for approval at January 16 Board meeting: Declare items on Surplus List as of 12/31/18, surplus and authorize the sale and disposal thereof. 5. Amendment Three to License Agreement with Pub Construction for Storing of Construction Equipment Located at Upper Five Coves Basin, Anaheim Recommended by Committee for approval at January 16 Board meeting: Approve and authorize execution of Amendment Three to License Agreement with PUB Construction to extend the License expiration date to February 28, 2019, with an additional license fee of $1,148, with all other Agreement terms to remain the same. 6. Amendment Three to License Agreement with T.E. Roberts for Storing of Construction Equipment Located at Huckleberry Pond, Anaheim Recommended by Committee for approval at January 16 Board meeting: Approve and authorize execution of Amendment Three to License Agreement with T.E. Roberts, Inc. to extend the License expiration date to June 30, 2019, with a license fee of $500 per month, with all other Agreement terms to remain the same.