AGENDA ADMINISTRATION/FINANCE ISSUES COMMITTEE MEETING WITH BOARD OF DIRECTORS* ORANGE COUNTY WATER DISTRICT 18700 Ward Street, Fountain Valley, CA 92708 Thursday, January 15, 2015, 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 January 21, 2015 Board meeting Agenda for approval. ROLL CALL ITEMS RECEIVED TOO LATE TO BE AGENDIZED RECOMMENDATION: Adopt resolution determining need to take immediate action on item(s) and that the need for action came to the attention of the District subsequent to the posting of the Agenda (requires two-thirds vote of the Board members present, or, if less than two-thirds of the members are present, a unanimous vote of those members present.) VISITOR PARTICIPATION Time has been reserved at this point in the agenda for persons wishing to comment for up to three minutes to the Board of Directors on any item that is not listed on the agenda, but within the subject matter jurisdiction of the District. By law, the Board of Directors is prohibited from taking action on such public comments. As appropriate, matters raised in these public comments will be referred to District staff or placed on the agenda of an upcoming Board meeting. At this time, members of the public may also offer public comment for up to three minutes on any item on the Consent Calendar. While members of the public may not remove an item from the Consent Calendar for separate discussion, a Director may do so at the request of a member of the public. CONSENT CALENDAR (ITEMS NOS. 1 – 6) All matters on the Consent Calendar are to be approved by one motion, without separate discussion on these items, unless a Board member or District staff request that specific items be removed from the Consent Calendar for separate consideration. 1. MINUTES OF ADMINISTRATION/FINANCE ISSUES COMMITTEE MEETING HELD DECEMBER 11, 2014 RECOMMENDATION: Approve minutes as presented 2. MONTHLY CASH CONTROL REPORT RECOMMENDATION: Agendize for the January 21 Board Meeting: Receive and file Summary Cash and Cash Equivalents Control Report dated December 31, 2014 1 3. WELLS FARGO BANK AUTHORIZED SIGNERS RESOLUTION RECOMMENDATION: Agendize for January 21 Board meeting: Ratify resolution authorizing execution of Wells Fargo Bank form: Use of Facsimile and /or Logo Signatures in Relation to Deposit Accounts 4. PURCHASE ORDER TO TIGER CORPORATION FOR A JOHN DEERE 6140 TRACTOR WITH FLAIL RECOMMENDATION: Agendize for January 21 Board meeting: 1) Authorize issuance of Purchase Order to Tiger Corporation in the amount of $152,265 for the replacement of RT-32 tractor/mower with a John Deere 6140 tractor with a 50” flail; and 2) Find the equipment is no longer necessary for use at the District, and authorize the surplus and/or sale of the RT-32 tractor/mower 5. COMPENSATION AGREEMENT WITH THE CITY OF GARDEN GROVE FOR LONG RANGE PROPERTY MANAGEMENT PLAN RECOMMENDATION: Agendize for January 21 Board meeting: Approve and authorize execution of the Compensation Agreement with the City of Garden Grove as required by the California Department of Finance to allow the City to retain two properties: one for future redevelopment and one to market for sale 6. LICENSE AND SUPPORT AGREEMENT TO ORACLE JD EDWARDS FOR SYSTEM UPDATES RECOMMENDATION: Agendize for January 21 Board meeting: Approve and authorize execution of Oracle JD Edwards Software Update License and Support Agreement in the amount of $351,115 for system updates commencing March 1, 2015 through February 28, 2020 END OF CONSENT CALENDAR MATTERS FOR CONSIDERATION 7. INVESTMENT PORTFOLIO HOLDINGS REPORT RECOMMENDATION: Agendize for January 21 Board meeting: Receive and file Investment Portfolio Holdings Report dated December 31, 2014 8. ANNUAL DEBT SERVICE (ADS) COVERAGE POLICY RECOMMENDATION: Agendize for January 21 Board meeting: Adopt the revised District Reserve Policy 2 9. BASIN PRODUCTION PERCENTAGE AND REPLENISHMENT ASSESSMENT ESTIMATES FOR FISCAL YEAR 2015-16 RECOMMENDATION: Agendize for January 21 Board meeting: Provide the Fiscal Year 2015- 16 Replenishment Assessment and Basin Production Percentage estimates to the Groundwater Producers along with any additional Board comments INFORMATIONAL ITEMS 10. EMPLOYMENT STATUS REPORT 11. MONTHLY CASH DISBURSEMENTS DETAIL REPORT CHAIR DIRECTION AS TO WHICH ITEMS IF ANY TO BE AGENDIZED AS MATTERS FOR CONSIDERATION AT THE JANUARY 21 BOARD MEETING DIRECTOR’S ANNOUNCEMENTS/REPORTS GENERAL MANAGER’S ANNOUNCEMENT/REPORT 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 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. 3 ADMINISTRATION AND FINANCE ISSUES COMMITTEE MEMBERS Shawn Dewane - Chair Jan Flory - Vice Chair Roger Yoh Dina Nguyen Denis Bilodeau Alternates Steve Sheldon - Alternate 1 Philip Anthony - Alternate 2 Vince Sarmiento - Alternate 3 Harry Sidhu - Alternate 4 Cathy Green - Alternate 5 4 1 MINUTES OF BOARD OF DIRECTORS MEETING ADMINISTRATION AND FINANCE ISSUES COMMITTEE ORANGE COUNTY WATER DISTRICT December 11, 2014 @ 8 a.m. The Administration and Finance Issues Committee meeting was called to order by Director Sidhu in Conference Room C-2 in Fountain Valley, CA. The Assistant District Secretary reported quorum of the Committee. Committee Members OCWD staff Vacant, Chair Mike Markus, General Manager Roger Yoh (not present) Randy Fick, CFO/Treasurer Steve Sheldon (arrived 8:02 a.m.) Joel Kuperberg, General Counsel Harry Sidhu Judy-Rae Karlsen, Assistant District Secretary Jan Flory Kevin Greene, Bonnie Howard, Bill Hunt, John Kennedy Alternates Vincent Sarmiento (arrived 8:15 a.m.) Philip Anthony Denis Bilodeau (arrived 8:25 a.m.) Cathy Green Shawn Dewane Dina Nguyen (not present) CONSENT CALENDAR The Consent Calendar items were approved upon motion by Director Flory, seconded by Director Anthony and carried [4-0] as follows. [Yes- Sidhu, Flory, Anthony, Green/No-0] 1. Minutes of Previous Meeting The Minutes of the Administration and Finance Issues Committee meeting held November 13, 2014 are approved as presented. 2. Monthly Cash Control Report Recommended by Committee for approval at December 17 Board meeting: Receive and file Summary Cash and Cash Equivalents Control Report dated November 30, 2014. 3. Biennial Review of OCWD Conflict of Interest Code Recommended by Committee for approval at December 17 Board meeting: Adopt amended Conflict of Interest Code revised Appendix A, and direct District Secretary to submit amendment to Orange County Clerk of the Board prior to December 31, 2014. 4. Request for Proposals for Utility Audit/Cost Reduction Services Recommended by Committee for approval at December 17 Board meeting: Authorize issuance of Request for Proposals for utility audit/cost reduction services. 12/11/2014 5. Availability of Commercial Paper for Replacement & Refurbishment (R&R) Projects Recommended by Committee for approval at December 17 Board meeting: Authorize CFO/Treasurer to issue commercial paper as needed to balance cash flows for two Replacement & Refurbishment projects – Burris Basin Pump Station and Imperial Head Gates & Weir Pond Rehab Project. 6. Amendment to R&R Project R14020 with Tri-Tek Burglar Alarm Company to Upgrade Existing Security System at Prado Field Office Recommended by Committee for approval at December 17 Board meeting: Authorize issuance of Amendment to Project R14020 with Tri-Tek Burglar Alarm Company in the amount of $13,922 for additional security cameras. MATTERS FOR CONSIDERATION Director Sheldon arrived at 8:02 a.m. during the following discussion. 7. Investment Portfolio Holdings Report District Treasurer/Chief Financial Officer Randy Fick reviewed the District’s SWAP and presented current market trends. He reported the one-year Treasury note as of November 30, 2014 is 0.13%; the two-year yield is 0.47%, the five-year yield is 1.49%; and the total rate of return on investments is 0.921%.