ADMINISTRATION & FINANCE COMMITTEE

Transcription

1 MEETING OF THE BOARD OF DIRECTORS OF THE MUNICIPAL WATER DISTRICT OF ORANGE COUNTY Jointly with the ADMINISTRATION & FINANCE COMMITTEE January 10, 2018, 8:30 a.m. MWDOC Conference Room 101 Committee: Director Thomas, Chairman Director Dick Director Finnegan Staff: R. Hunter, K. Seckel, C. Harris, K. Davanaugh, H. Chumpitazi Ex Officio Member: Director Barbre MWDOC Committee meetings are noticed and held as joint meetings of the Committee and the entire Board of Directors and all members of the Board of Directors may attend and participate in the discussion. Each Committee has designated Committee members, and other members of the Board are designated alternate committee members. If less than a quorum of the full Board is in attendance, the Board meeting will be adjourned for lack of a quorum and the meeting will proceed as a meeting of the Committee with those Committee members and alternate members in attendance acting as the Committee. PUBLIC COMMENTS - Public comments on agenda items and items under the jurisdiction of the Committee should be made at this time. ITEMS RECEIVED TOO LATE TO BE AGENDIZED - Determine there is a 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 a unanimous vote of the Committee) ITEMS DISTRIBUTED TO THE BOARD LESS THAN 72 HOURS PRIOR TO MEETING -Pursuant to Government Code section , non-exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District s business office located at Ward Street, Fountain Valley, California 92708, during regular business hours. When practical, these public records will also be made available on the District s Internet Web site, accessible at PROPOSED BOARD CONSENT CALENDAR ITEMS 1. TREASURER'S REPORT a. Revenue/Cash Receipt Report December 2017 b. Disbursement Approval Report for the month of January 2018 c. Disbursement Ratification Report for the month of December 2017 d. GM Approved Disbursement Report for the month of December 2017 e. Water Use Efficiency Projects Cash Flow December 31, 2017 f. Consolidated Summary of Cash and Investment November 2017 g. OPEB Trust Fund monthly statement 2. FINANCIAL REPORT a. Combined Financial Statements and Budget Comparative for the Period ending November 30, Page 1 of 55

2 A&F Committee Meeting January 10, 2018 ACTION ITEMS 3. ACWA DC CONFERENCE FEBRUARY 27-MARCH 1, 2018 DISCUSSION ITEM 4. FY BUDGET INFORMATION ITEMS (THE FOLLOWING ITEMS ARE FOR INFORMATIONAL PURPOSES ONLY BACKGROUND INFORMATION IS INCLUDED IN THE PACKET. DISCUSSION IS NOT NECESSARY UNLESS REQUESTED BY A DIRECTOR.) 5. DEPARTMENT ACTIVITIES REPORTS a. Administration b. Finance and Information Technology 6. MONTHLY WATER USAGE DATA, TIER 2 PROJECTION, AND WATER SUPPLY INFORMATION OTHER ITEMS 7. REVIEW ISSUES REGARDING DISTRICT ORGANIZATION, PERSONNEL MATTERS, EMPLOYEE BENEFITS FINANCE AND INSURANCE ADJOURNMENT NOTE: At the discretion of the Committee, all items appearing on this agenda, whether or not expressly listed for action, may be deliberated, and may be subject to action by the Committee. On those items designated for Board action, the Committee reviews the items and makes a recommendation for final action to the full Board of Directors; final action will be taken by the Board of Directors. Agendas for Committee and Board meetings may be obtained from the District Secretary. Members of the public are advised that the Board consideration process includes consideration of each agenda item by one or more Committees indicated on the Board Action Sheet. Attendance at Committee meetings and the Board meeting considering an item consequently is advised. Accommodations for the Disabled. Any person may make a request for a disability-related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning Maribeth Goldsby, District Secretary, at (714) , or writing to Municipal Water District of Orange County at P.O. Box 20895, Fountain Valley, CA Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so that District staff may discuss appropriate arrangements. Persons requesting a disability-related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. 2 Page 2 of 55

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19 17, , ,50 7, ,372, , , , , ,00 1,096, $ 13,50 272, , , , Metropolitan Water District O:\Finance\A&F COMM\FY 17-18\CF by Vendor Cash - Ending Balance Total Expenditures Salary & Benefit Western National Property Management Miscellaneous Expenses Interest Expense Vu Ho, Inc Turf Removal Spray to Drip program Recycled Water On Site Retrofit program Mission RCD (133,020.86) $ 143, ,30 60, , (151,184.71) $ 189, , (326,302.43) $ 227, , , , , , , , , , , , , , , , , ,75 52, , , , , , , , Nov 2017 Laguna Beach CWD 48 10, , , , , , ,80 5, , , (326,302.43) $ Oct , , , , , (151,184.71) $ Sep 2017 $ $ Page 1 778, , , , , ,50 1, , , , , , Dec 2017 $ $ 778, , Jan 2018 Municipal Water District of Orange County WATER USE EFFICIENCY PROJECTS Cash Flow as of 12/31/17 City of Huntington Beach Golden State Water Company Ecotech DeLorenzo International Budget Based Tiered Rates, Raftelis EXPENDITURES: Total Revenues Miscellaneous Interest Revenue Yorba Linda Water District Miscellaneous Revenues Trabuco Canyon Water District Department of Water Resources El Toro Water District Golden State Water Company Irvine Ranch Water District Laguna Beach County Water District Mesa Water District Metropolitan Water District Moulton Niguel Water District Orange County Water District Santa Margarita Water District Serrano Water District County of Orange 3, City of Westminster City of Newport Beach City of Orange City of Tustin City of San Juan Capistrano City of San Clemente 1, City of Huntington Beach City of La Habra City of Garden Grove City of Fullerton (133,020.86) $ Aug 2017 City of Fountain Valley (72,844.08) $ Jul $ $ City of Buena Park City of Brea BUREC REVENUES: Cash - Beginning Balance Page 19 of 55 $ $ 778, , Feb 2018 $ $ 778, , Mar 2018 $ $ 778, , Apr 2018 $ $ 778, , May 2018 $ $ 778, , Jun , , , , , , , ,096, , , , , , , , $ 1,169, , , , , , , , , , , , , $ 2,021, $ TOTALS 1e

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25 Item 2 MUNICIPAL WATER DISTRICT OF ORANGE COUNTY COMBINED FINANCIAL STATEMENTS AND BUDGET COMPARATIVE JULY 1, 2017 THRU NOVEMBER 30, 2017 Page 25 of 55

26 Municipal Water District of Orange County Combined Balance Sheet As of November 30, 2017 ASSETS Cash in Bank Investments Accounts Receivable Accounts Receivable - Other Accrued Interest Receivable Prepaids/Deposits Leasehold Improvements Furniture, Fixtures & Equipment Less: Accum Depreciation Net OPEB Asset TOTAL ASSETS LIABILITIES AND FUND BALANCES Liabilities Accounts Payable Accounts Payable - Other Accrued Salaries and Benefits Payable Other Liabilities Unearned Revenue Total Liabilities Amount 151, ,345, ,538, , , , ,695, , (2,793,278.94) 483, $46,381, ,572, , , ,714, ,824, Fund Balances Restricted Fund Balances Water Fund - T2C Total Restricted Fund Balances 975, , Unrestricted Fund Balances OPEB Related Asset Fund 483, Designated Reserves General Operations Grant & Project Cash Flow Election Expense Building Repair OPEB Total Designated Reserves GENERAL FUND WEROC Capital WEROC Total Unrestricted Fund Balances Excess Revenue over Expenditures Operating Fund Other Funds Total Fund Balance TOTAL LIABILITIES AND FUND BALANCES 3,156, ,500,00 304,00 350, , ,519, ,406, , , ,836, ,970, (225,886.69) 15,556, $46,381, Page 26 of 55

27 Municipal Water District of Orange County Revenues and Expenditures Budget Comparative Report General Fund From July thru November 2017 Month to Date Year to Date Annual Budget % Used Retail Connection Charge Ground Water Customer Charge 7,435, , ,435, , % 10% Water rate revenues 7,904, ,904, % 23, , , % 30, , ,024, ,054, % 30, , ,094, , , ,176, ,00 70,00 138, % 48.18% 53.24% % 82, , , ,47 10, ,132, ,388, % 255, , ,157, ,442, % 285, Encumbrance Budget Remaining REVENUES Interest Revenue Subtotal Choice Programs Miscellaneous Income School Contracts Transfer In From Reserve Subtotal TOTAL REVENUES Page 27 of 55

28 Municipal Water District of Orange County Revenues and Expenditures Budget Comparative Report General Fund From July thru November 2017 Year to Date Annual Budget % Used 260, , , , , , , ,378, (2,403.18) (436.80) 87, , , (477.64) (83.20) 33, , , ,972, ,571,21 (23,279.00) 243, , ,056, , , ,00 5,00 5,00 5,148, % 10.32% % 36.05% 36.84% 37.66% % % 41.49% 36.14% 4.94% % 95.50% 38.31% 2,193, (20,875.82) , , , , , , , ,175, , , , , , , ,00 251, , ,00 250,00 40,00 1,539, ,189, % 32.40% 47.50% 16.35% 19.10% 81, , , , , ,00 728, , Conference Staff Conference Directors Travel & Accom. Staff Travel & Accom. Directors Travel & Conference 1, ,16 3, , , , , , , , , ,70 95,60 49,85 208, % 25.26% 16.19% 14.18% 17.43% 31, , , , , Membership/Sponsorship CDR Support Dues & Memberships 6, , , , , , , , , % 44.88% 71.69% 21, , , , , Business Expense Maintenance Office Building Repair & Maintenance Storage Rental & Equipment Lease Office Supplies Postage/Mail Delivery Subscriptions & Books Reproduction Expense Maintenance Computers Software Purchase Software Support Computers and Equipment Automotive Expense Toll Road Charges Insurance Expense Utilities Telephone Bank Fees Miscellaneous Expense MWDOC's Contrb. To WEROC Depreciation Expense Other Expenses , , , , , , , , (20) 5, , , , , , , , , , , , , , , , , , , , , ,20 123,50 11,00 8,40 35,58 10,50 1,50 27, ,00 44,26 48, ,05 16,40 1,00 110,25 21,30 11,00 119,65 460, ,099, % 32.46% % 11.60% 20.72% 28.92% 34.91% 15.12% 10.09% 21.42% 45.10% 31.12% 43.31% 35.71% 40.68% 31.73% 38.35% 25.11% 77.32% % 51.78% 82, , , , , , , , , (4,128.00) 3,40 25, , , , , , , , , , , , , (3,972.03) 428, MWDOC's Building Expense Capital Acquisition 16, , , ,40 249, % 5.51% 45, , , TOTAL EXPENSES 551, ,186, ,442, % 978, ,277, NET INCOME (LOSS) (517,369.22) 5,970, Month to Date Encumbrance Budget Remaining EXPENSES Salaries & Wages Salaries & Wages Grant Recovery Salaries & Wages Recovery Directors' Compensation MWD Representation Employee Benefits Employee Benefits Grant Recovery Employee Benefits Recovery Director's Benefits Health Ins $'s for Retirees Training Expense Tuition Reimbursement Temporary Help Expense Personnel Expenses Engineering Expense Legal Expense Audit Expense Professional Services Professional Fees Page 28 of 55

29 Municipal Water District of Orange County Revenues and Expenditures Budget Comparative Report Water Fund From July thru November 2017 Annual Budget % Used Budget Remaining Month to Date Year to Date Water Sales Readiness to Serve Charge Capacity Charge CCF SCP/SAC Pipeline Surcharge Interest 6,676, , ,40 25, ,541, ,317, ,477,00 153, , ,733, ,397, ,544,80 423,00 9, % 41.52% 41.67% 36.20% 45.99% 68,192, ,080, ,067,80 269, , TOTAL WATER REVENUES 7,862, ,493, ,108, % 76,615, Water Sales Readiness to Serve Charge Capacity Charge CCF SCP/SAC Pipeline Surcharge 6,676, , ,40 25, ,541, ,317, ,477,00 153, ,733, ,397, ,544,80 423, % 41.52% 41.67% 36.20% 68,192, ,080, ,067,80 269, TOTAL WATER PURCHASES 7,861, ,488, ,098, % 76,610, EXCESS OF REVENUE OVER EXPENDITURES , ,40 WATER REVENUES WATER PURCHASES Page 29 of 55

30 Municipal Water District of Orange County WUE Revenues and Expenditures (Actuals vs Budget) From July thru November 2017 Year to Date Actual Spray To Drip Conversion Revenues Expenses Excess of Revenues over Expenditures Annual Budget % Used 50, , (1,237.67) 257, , % 20.12% 7,20 7,20 % % ULFT Rebate Program Revenues Expenses Excess of Revenues over Expenditures 11, , (2,390.04) 95,00 95, % 14.45% HECW Rebate Program Revenues Expenses Excess of Revenues over Expenditures 113, , (29,984.03) 340,00 340, % 42.08% CII Rebate Program Revenues Expenses Excess of Revenues over Expenditures 109,23 109,23 345,00 345, % 31.66% Turf Removal Program Revenues Expenses Excess of Revenues over Expenditures 80, , (340,678.40) 2,552, ,552, % 16.49% Comprehensive Landscape (CLWUE) Revenues Expenses Excess of Revenues over Expenditures 19, , (83,813.59) 520,00 520, % 19.96% 2, (2,147.00) 62, , % 3.42% WUE Projects Revenues Expenses Excess of Revenues over Expenditures 384, , (460,250.73) 4,179, ,179, % 20.21% WEROC Revenues Expenses Excess of Revenues over Expenditures 539, , , , , % 24.73% Member Agency Administered Passthru Revenues Expenses Excess of Revenues over Expenditures CII, Large Landscape, Performance (OWOW) Revenues Expenses Excess of Revenues over Expenditures Page 30 of 55

31 Item No. 3 ACTION ITEM January 17, 2018 TO: Board of Directors FROM: Administration & Finance Committee (Directors Thomas, Dick, Finnegan) Robert J. Hunter, General Manager Staff Contact: SUBJECT: Patricia Meszaros ACWA DC CONFERENCE FEBRUARY 27-MARCH 1, 2018 STAFF RECOMMENDATION It is recommended that the Board of Directors approve an additional attendee (Board) to the ACWA DC Conference. COMMITTEE RECOMMENDATION Committee recommends (to be determined at Committee Meeting) DETAILED REPORT The FY Budget allows for two (2) directors to attend the ACWA DC Conference, however, three (3) directors have requested to attend. As a result, and because the Administrative Code (1405 Director Authorization to Travel) requires board approval for out of state travel, staff is requesting Board approval for additional Board members who wish to attend the conference in DC. Staff believes there are sufficient funds in the travel budget to cover three attendees to the conference. Budgeted (Y/N): Yes* Budgeted amount: $9435 Action item amount: *$3000 (approximately per person) Core Choice Line item: Fiscal Impact (explain if unbudgeted): Page 31 of 55

32 Item No. 4 DISCUSSION ITEM January 10, 2018 TO: Administration & Finance Committee (Directors Thomas, Dick, Finnegan) FROM: Robert Hunter, General Manager Staff Contact: Hilary Chumpitazi SUBJECT: FY Budget Year End Projections & Conceptual FY Budget Review STAFF RECOMMENDATION Staff recommends the Administration & Finance Committee: discuss the budget process and assumptions and direct the General Manager as appropriate. COMMITTEE RECOMMENDATION Committee recommends (To be determined at Committee Meeting) DETAILED REPORT MWDOC Budget Process FY MWDOC has made several changes to the annual budget process for FY Foremost among these changes is the acceleration of the budget process by one month (schedule attached). Under the new schedule the Year End Projections and Conceptual Budget (assumptions) are discussed at the January Administration & Finance (A&F) Committee meeting with the first draft budget presented at the February 14, 2018 A&F Committee meeting. The final budget is scheduled for approval by the MWDOC Board of Directors at the April 18, 2018 Board meeting. The schedule changes were implemented in order to facilitate the budget and rate schedules of our Member Agencies. Because the Choice budget elections and commitments will lag behind the new schedule, MWDOC will bring back to the Board of Directors a revised, final Choice budget in September 2018 that will reflect the reconciliations and final program commitments of our Member Agencies. These changes will not impact the rates and charges passed in April for Core activities. Therefore, this discussion item focuses on Core budgets and activities. Budgeted (Y/N): Action item amount: Budgeted amount: Core Choice Line item: Fiscal Impact (explain if unbudgeted): Page 32 of 55

33 Page 2 Another modification to the budget process is the early identification of Reserve Fund impacts. The stated goal of the Board of Directors is to have reserves fully funded and that the budget should be balanced relative to meeting those reserve targets. In other words, if the combination of previous fiscal year s audited reserve balances and the current fiscal year year-end projections indicate that the reserve target will be exceeded then the proposed budget should include a draw from the reserve balance down to the target. Conversely if the projected total will drop the reserve balance below the target then the proposed budget should increase the budgeted contribution to reserves back up to the target. The first half of this process is discussed further below. It is noted that the Metropolitan Water District of Southern California will be developing their two-year budget this spring with new rates going into effect at the end of calendar year MWDOC will keep the A&F Committee and our Member Agencies informed of developments. Projected Year-End Estimates for Staff began preparation of the Budget in December 2017 in concurrence with the revised budget schedule. As part of that process, initial projections have been prepared for the remainder of the current fiscal year in order to calculate the estimated fiscal year Year End Projections. Because the budget schedule has been moved up one month, the projections this year utilize only five months of actual expenditures and estimate seven months. Preliminary variance estimates for the core budget include: 1. The total variance for the Core Budget is projected to be $387,359 under budget partially offset by a budgeted $138,470 draw on reserves yielding a net $248,889 available for contribution to reserves. 2. Due to the change in how we are dealing with the reserves in the budget process, the annual level contribution to the election reserve of $304,000 is shown as being overbudget this year (i.e., not a budget line-item in the FY budget). 3. Salaries and Benefits are the largest projected negative variance item at approximately $185,000 under budget caused by staffing transitions (as staff have left, the positions have not been filled immediately). We are currently filling the open positions. Salaries and benefits in the second half of the fiscal year will be greater than the first half. 4. Professional Fees originating from departments not related to Engineering and MET are projected to be approximately $180,000 under budget. The majority of this variance is caused by the Outside Financial Consultant budget item that was established in lieu of hiring a Chief Financial Officer. Other contributing cost centers were Water Use Efficiency (WUE), Public Affairs and Government Affairs. 5. The Engineering Expense line item shows as being approximately $125,000 under budget in part due to the carryover of funds from the prior year s budget as well as project timing. 6. Capital acquisition expenses are projected to be approximately $79,000 under budget due to the delays in office refurbishment associated with the space planning and seismic Page 33 of 55

34 Page 3 structural assessment projects. This expense will be carried forward to the FY budget. 7. The MWDOC & MWD Director Compensation line items are about $44,000 under budget due to fewer meetings being submitted than budgeted for the per diem compensation. 8. The Legal Expenses and Audit Expenses are both anticipated to be approximately $21,000 under budget. The new financial auditor was contracted at a lower than budgeted amount and no WUE grant single audit was required. Projected Reserve Fund Balances The MWDOC designated reserve targets for FY and the financial audit balances at the beginning of FY are summarized below and indicated a total unfunded balance of $581,257 (i.e., Total Target (-) Total Current Balance). As indicated in #1 (above) a total of $248,889 is projected to be available for contribution to reserves from the FY operations. These funds are allocated to the General Operations and the Building Reserves as indicated in the table column FY Projected Year End Reclass to Reserves. As described in #2 (above) an additional $304,000 is shown as the annual contribution to the Election Reserve for a total projected contribution of $552,889. The total unfunded balance after these projected contributions is only $28,368 (i.e., Target ( ) Projected Balance). The theoretical goal for rate setting in the FY budget would be to have a budget surplus of $28,368 to contribute to the reserve. This amount is significantly less than the accuracy of the budget process with a function budget target of and essentially breaking even. Designated Reserves General Operations Grant & Project Cash Flow Building Reserve Election Reserve OPEB Reserve est.9/2016 TOTALS FY Target Reserve* FY Current Balance $ 3,377,754 $ 3,156, N/A 1,500, , ,000 1,500, , ,000 N/A 209, ,006 $ 6,101,239 $ 5,519,982 # Days Cash FY Projected Year End Reclass to Reserves FY Projected Reserve Balance $ 221,185 $ 3,377, , ,000 1,500, , , ,006 $ 552,889 $ 6,072,871 Development of Budget Estimates Looking forward to the Proposed Budget for , staff has begun assessing a number of issues and assumptions, including: Page 34 of 55

35 Page 4 The MWDOC Board of Directors has approved the funding over a ten-year period the unfunded CALPERS liability at an annual payment of $207,000. This will be a new expense for the FY budget and was not included in any previous year s budget. MWDOC will have three director positions in the upcoming election cycle with a potential cost of $522,000. The actual cost will be taken from the election reserve. The proposed budget will also include the normal annual contribution to the election reserve of $304,000 to fully fund seven elections in a four year cycle. The final step of the migration of pension benefit costs from MWDOC to the employees at the rate of 1% per year will be made. We are currently at 6% employee contribution and will move to the final target of 7% in this budget. The Comprehensive Salary and Benefits Study is under contract and will be completed during the budget process. We are currently using a salary escalation of 4% of total salary expense for the performance pool. No staff additions are anticipated in the budget. The current preliminary work indicates a small rate increase but less than was projected in the financial model in last year s budget document. Staff will continue working on preparation of the budget towards publication of the first draft by February 8, 2018 for distribution to the Board and member agencies. Page 35 of 55

36 MWDOC BUDGET PROCESS & SCHEDULE November 2017 Notification to Member Agencies of start of budget process and solicitation of input December 2017 MWDOC staff begins preparation of budget hours and costs on program and line-item basis Review of four month actuals and fiscal year-end projections Review budget adjustments for current fiscal year Preparation of internal, draft conceptual budget (review changes for upcoming fiscal year January 2018 Initial review of budget issues with A&F Committee for feedback ( ) Initial discussion of budget issues with Member Agencies for feedback Request for Member Agencies PRELIMINARY indication of participation in CHOICE February 2018 Publish and post the FIRST DRAFT Budget in the packet for the A&F Committee (2-8-18) Review Full Draft Budget with A&F Committee ( ) Formally request comments from all Member Agencies DRAFT information completed on prior year CHOICE WUE program benefits to Member Agencies to serve as basis for charging agencies for the upcoming year for CHOICE WUE activities Member Agencies INITIAL CONFIRMATION of participation in CHOICE Services by February 15. The Updated Agreement by the end of March and after the Elected Officials Meeting Discuss FIRST DRAFT Budget at Member Agency Managers Meeting ( ) Meet with Member Agencies as requested or scheduled 1 Page Page 36 of 55

37 MWDOC BUDGET PROCESS & SCHEDULE March 2018 REVISED information completed on prior year CHOICE WUE benefits to Member Agencies to serve as basis of charging agencies for the upcoming year for WUE activities Discuss SECOND DRAFT Budget in A&F Committee (3-1418) Review SECOND DRAFT Budget at Member Agency Managers Meeting ( ) Update CHOICE Participation Member Agencies submit Formal Comments about the Budget ( ) April 2018 Conduct meeting with Elected Officials from Member Agencies to discuss budget and other topics (4-5-18) THIRD DRAFT Budget and Rates presented to A&F Committee ( ) Member Agencies Formal Comments presented to A&F Committee Board approval of FY FINAL Budget and Rates (418-18) June 2018 Member Agencies confirm FINAL CHOICE Participation (615-18) August 2018 Reconciliation of FY WUE & CHOICE Programs September 2018 REVISED FINAL CHOICE Budget presented to A&F Committee ( ) Board approval of FY REVISED FINAL CHOICE Budget ( ) 2 Page Page 37 of 55

38 Item 5a Activity Administration/Board MWDOC/OCWD Joint Administration Health Benefits Records Management CalPERS Agency Inquiries Administration Activities Report December 8, 2017 to January 4, 2018 Summary Staff worked on the following: Scheduling meetings for Rob Hunter and other various meetings of the Board members. Assisted Rob/Karl with various write ups and follow-up for the Committees and Board. Sent the Water Supply Reports to the member agencies. Assisting management staff with District policy and procedures. Contact vendors/contractors whose insurance certificates are close to expiration. Worked with digital media company on logo in Board Room. Continue to work with Public Affairs and vendor on new website on various calendar and posting issues and recommended revisions to several sections/pages of the new website. Worked with President Barbre on Committee assignments. Prepared letter to vendors regarding gifts to District employees/directors. Scheduled meetings for Rob and Karl and ordered lunches for several meetings. Prepared write-up for Board for the A&F Committee re ACWA DC. Registered staff and board members for conferences and events; scheduled travel for ACWA DC Conference, OC Business Council, CED; ACC-OC State Advocacy; ACWA State Leg. Comm.; DC legislative initiatives, ACWA Federal Affairs Committee; CalWEP, Irrigation Org. seminars, and other misc. travel and/or workshops, which includes preparation of purchase requisitions and back-up. Proofread docs for Water Use Efficiency. Staff coordinating with OCWD on anticipated 2018/19 budget items for the joint facilities. No new information to report. The last of the documents in the library have been evaluated and scanned. The next step will be to finish evaluation of the documents remaining in the vault and purge the filing cabinets, which will then be removed. No new information to report. No new information to report. 1 Page 38 of 55

39 Item 5a Recruitment /Departures Recruitment efforts continue for the following positions: Public Affairs Assistant, Public Affairs Specialist and Engineering Intern Other Projects and Activities Staff is evaluating patio furniture for the newly renovated area, it is anticipated the atrium will be finished in January. HR staff Continues work with Ralph Anderson on the Classification & Compensation Study. Staff participated in Public Affairs Specialist telephone interviews. Staff is preparing for 2018/19 Budget items. Staff is researching and evaluating implementation of a cell phone reimbursement policy. Staff is researching and evaluating recruitment and performance management systems for implementation in the 2018/19 budget year. 2 Page 39 of 55

40 Item No. 5b INFORMATION ITEM January 10, 2018 TO: Administration & Finance Committee (Directors Thomas, Dick, Finnegan) FROM: Robert J. Hunter, General Manager SUBJECT: Finance and IT Pending Items Report Staff Contact: Jeff Stalvey SUMMARY The following list details the status of special projects that are in-progress or to be completed during FY Description % of Completion Estimated Completion date Status On-going On-going In Progress 0% Not Started 20% In Progress On-going On-going In Progress 10% In Progress 5% In Progress Finance Further Implementation of WUE Landscape Programs Databases and Web Site. Government Compensation in California Report 2017 Preparation of documents for FY18-19 budget process W-9 collection for water rebates. Currently not holding any rebate checks, awaiting a completed W-9 form Prepare, mail and file MISC forms for rebate checks and accounts payable Preparing an RFP for new banking services Page 40 of 55

41 % of Completion Estimated Completion date On-going On-going 0% Continuous system monitoring Not Started 70% In Progress 20% In Progress % of Completion Estimated Completion date Status Tax filing for Water Facilities FY % Completed Annual Financial Statement Report FY % Completed Working with Davis Farr to write our grant policy to comply with audit guidelines 100% Completed Fiscal Year 2016/17 Annual Audit by Vazquez CPA 100% Completed State Controller Report preparation FY % Completed Purchase and implement 2 UPS units for IT Server room. 100% Completed Purchase and upgrade DATA Server. 100% Completed Description Status Information Technology Network security issues (hackers, viruses and spam s) Purchase and implement Intrusion detection and prevention for District Network. Purchase and implement 2 Cisco Power Over Ethernet switches and Cisco Router into existing Network. Implement Backups and Disaster Recovery for VOIP telephone System. Description FY Completed Special Tasks Finance Information Technology Page 41 of 55

42 Item No. 6 INFORMATION ITEM January 10, 2017 TO: Administration & Finance Committee (Directors Thomas, Dick, Finnegan) FROM: Robert Hunter, General Manager SUBJECT: Monthly Water Usage Data, Tier 2 Projection, and Water Supply Info. Staff Contact: Kevin Hostert STAFF RECOMMENDATION Staff recommends the Administration & Finance Committee receive and file this information. COMMITTEE RECOMMENDATION Committee recommends (To be determined at Committee Meeting) REPORT The attached figures show the recent trend of water consumption in Orange County (OC), an estimate of Tier 2 volume for MWDOC, and selected water supply information. Fig. 1 OC Water Usage, Monthly by Supply MWD imported water was the main supply in November, imported usage has increased due to the In Lieu program. Fig. 2 OC Water Usage, Monthly, Comparison to Previous Years Water usage in November 2017 was slightly above average compared to the last 5 years with the months of November 2015 and November 2016 showing lower usage. We are seeing a slight increase in overall water usage compared to the previous Fiscal Year. In June 2016, all water conservation became voluntary for MWDOC agencies and the Great California Drought was declared over by the Governor in April Fig. 3 Historical OC Water Consumption OC water consumption is projected to be 544,000 AF in FY (this includes ~15 TAF of agricultural usage and non-retail water agency usage). This is about 25,000 AF more than FY and is about 53,000 AF more than FY (During the SWRCB mandatory water restrictions). Water usage per person is projected to be Budgeted (Y/N): N Budgeted amount: N/A Action item amount: N/A Core X Choice Line item: Fiscal Impact (explain if unbudgeted): Page 42 of 55

43 Page 2 slightly higher than in FY for Orange County at 152 gallons per day (This includes recycled water). Although OC population has increased 20% over the past two decades, water usage has not increased, on average. A long-term decrease in per-capita water usage is attributed mostly to Water Use Efficiency (water conservation) efforts. MWDOC Firm Water Purchases, 2016 Firm water above the Tier 1 limit will be charged at the higher Tier 2 rate. Tier 2 purchases are zero in Water Supply Information Includes data on Rainfall in OC; the OCWD Basin overdraft; Northern California and Colorado River Basin hydrologic data; the State Water Project (SWP) Allocation, and regional storage volumes. The data have implications for the magnitude of supplies from the three watersheds that are the principal sources of water for OC. Note that a hydrologic year is Oct. 1st through Sept. 30th. Orange County s accumulated rainfall through Early December was well below average for this period. Orange County saw rainfall 8 inches above normal in WY Northern California accumulated precipitation through Early January was around 68% of normal for this period. Water Year 2017 was the wettest water year on record. The Northern California snowpack was 21% of normal as of January3rd. The State of California was in a declared Drought Emergency that started January 2014 and just recently ended in April of As of early January, only 12.7% of California is experiencing moderate drought conditions while 44% of the state is experiencing abnormally dry conditions. The State Water Project Contractors initial Table A Allocation was set at 15% as of the end of November. Colorado River Basin accumulated precipitation through early December was 56% average for this period. The Upper Colorado Basin snowpack was 57% of normal as of January 2nd. The Colorado River Basin saw above average conditions in WY 2017 but the region has been still trying to rebound from the previous long term drought. Lake Mead and Lake Powell combined have about 68% of their average storage volume for this time of year. If Lake Mead s level falls below a trigger limit 1,075 ft. at the end of a calendar year, then a shortage will be declared by the US Bureau of Reclamation (USBR), impacting Colorado River water deliveries to the Lower Basin states. As of late December, Lake Mead levels were 5.9 above the trigger limit. The USBR predicts that the end of 2017 or the end of 2018 will not hit the trigger level. Page 43 of 55

44 Page 44 of 55 6,000 6,000 IRWD&Serrano for IL Apr-18 Mar-18 Nov-17 Oct-17 Sep-17 Aug-17 Jul-17 ACRE-FEET Non-OCWD Groundwater Import [1] OCWD Basin [2] Jun-18 May-18 [1] Imported water for consumptive use. Includes "In-Lieu" deliveries and CUP water extraction. Excludes "Direct Replenishment" deliveries of spreading water, "Barrier Replenishment" deliveries, and deliveries into Irvine Lake. [2] GW for consumptive use only. Excludes In-Lieu water deliveries and CUP water extraction that are counted with Import. BPP in FY '16-17 is 75%. [3] MWDOC's estimate of monthly demand is based on the projected FY 15-16"Retail" water demand and historical monthly demand patterns. [4] Total water usage includes IRWD groundwater agricultural use and usage by non-retail water agencies. 0 10,000 20,000 30,000 Dec-17 40,000 Jan-18 50,000 Surface Water Recycled (Non Potable) projected [3] Rainfall Feb-18 60,000 Fig. 1A OC Water Usage, Monthly by Supply with projection to end of fiscal year Rainfall (Inches)

45 Page 45 of 55 - Nov-17 Oct-17 Sep-17 Aug-17 Jul-17 O.C. Annual Water Usage ACRE-FEET (AF) 6,000 6,000 IRWD&Serrano for IL Hi, Avg and Low 70 from O.C. Water 65 Reliability Study [1] Imported water for consumptive use. Includes "In-Lieu" deliveries and CUP water extraction. Excludes "Direct Replenishment" deliveries of spreading water, "Barrier Replenishment" deliveries, and deliveries into Irvine Lake. [2] GW for consumptive use only. Excludes In-Lieu water deliveries and CUP water extraction that are counted with Import. BPP in FY '16-17 is 75%. '69 '71 '73 '75 '77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 ' [3] MWDOC's estimate of monthly demand is based on the projected FY 15-16"Retail" water demand and historical monthly demand patterns [4] Total water usage includes IRWD groundwater agricultural use and usage by non-retail water agencies. Fiscal Year 100, , , , ,000 20,000 30, ,000 Dec-17 40,000 Jan ,000 Feb-18 50,000 Mar ,000 Projected FY May-18 60,000 Apr-18 Non-OCWD Groundwater Import [1] projected [3] Jun-18 Surface Water Fig. 1B OC Water Usage, by SupplyWater Usage Recycled (Non Potable) Fig. 1BMonthly O.C. Historical OCWD Basin [2] with projection to end of fiscal year High Temp Average High Temperature (F)

46 Page 46 of 55-10,000 20,000 30,000 40,000 50,000 60,000 Aug Jul FY Oct Sep FY Nov FY Jan FY Mar FY Jun May Apr Feb Dec 0 100, , , , , , ,000 Partial Year Subtotals [1] Sum of Imported water for consumptive use (includes "In-Lieu" deliveries; excludes "Direct Replenishment "and "Barrier Replenishment") and Local water for consumptive use (includes recycled and non-potable water; excludes GWRS production, groundwater pumped to waste, and waste brine from water treatment projects.) Recent months numbers include some estimation. ACRE-FEET 70,000 Fig. 2A OC Monthly Water Usage [1]: Comparison to Last 4 Fiscal Years ACRE-FEET

47 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Fig. 4 MWDOC's Firm Water Purchases in CY 2017 Monthly Actual and Projected to CY Total Sep-17 Oct-17 Nov-17 Tier I Dec-17-50, , , , , , ,000 Cumulative Actual Proj Monthly Purchases Tier II = 321,635 AF Treated Untreated Total Cumulative Total (AF) *numbers are subject to change prepared by the Municipal Water District of Orange County printdate 1/3/2018 Notes 1. "Firm" includes Full Service (both Treated and Untreated) and Barrier water. 2. Basin Pumping Percentage (BPP) is the percentage of a retail water agency's total water demand that they are limited to pump from the OCWD-managed groundwater basin. BPP pertains to Basin agencies only. For example, if a Basin agency's total demand is 10,000 AF/yr and OCWD sets the BPP at 72%, then the agency is limited to 7,200 AF of groundwater that year. There may be certain exceptions and/or adjustments to that simple calculation. OCWD sets the BPP for the Basin agencies, usually as of July 1st. Monthly Total (AF) Page 47 of 55

48 Page 48 of 55 Inches ORANGE COUNTY (SANTA ANA) 0% Average to date N. SIERRAS 8STATION INDEX NORTHERN CALIF. SNOWPACK 21% UPPER BASIN COLORADO PRECIP. 56% UPPER BASIN COLORADO SNOWPACK 57% Colorado Snowpack on 1/02/2018 * The date of maximum snowpack accumulation (April 1st in Northern Calif., April 15th in the Upper Colorado Basin) is used for year to year comparison. RIVERSIDE (AIRPORT) 1% 68% Average End of Year CA Snowpack on 1/03/2018 % = Percent of Average to Date This Year to date for the Oct.-Sep. water year, through Early January 2018 Accumulated Precipitation

49 Acre Feet 0 AO (AF) AO w/cup removed (AF) Jul , ,864 Jul , ,216 Aug , ,340 Aug , ,131 Sep , ,223 Sep , ,007 Oct , ,811 Oct , ,522 Nov , ,906 Nov , ,691 Accumulated Overdraft (AO) Threshold for Mitigation Against Increasing AO AO (AF) AO w/cup removed (AF) 550, , , , , , , , , ,000 50,000 Full Accumulated Overdraft of the OCWD Groundwater Basin as of November 2017 Dec , ,009 Dec-17 Feb , ,004 Feb-18 Mar , ,931 Mar-18 Apr , ,462 Apr-18 May , ,009 May-18 Jun , ,164 Jun-18 Source of data = OCWD monthly Water Resources Report in Board meeting packet Jan , ,548 Jan-18 AO with CUP Removed Bottom of Basin Operating Range Nov-17 Oct-17 Sep-17 Aug-17 Jul-17 Jun-17 May-17 Apr-17 Mar-17 Feb-17 Jan-17 Dec-16 Nov-16 Oct-16 Sep-16 Aug-16 Jul-16 Jun-16 May-16 Apr-16 Mar-16 Feb-16 Jan-16 Dec-15 Nov-15 Oct-15 Sep-15 Aug-15 Jul-15 Jun-15 May-15 Apr-15 Mar-15 Feb-15 Jan-15 Dec-14 Nov-14 Oct-14 Sep-14 Aug-14 Jul-14 Jun-14 May-14 Apr-14 Mar-14 Feb-14 Jan-14 Dec-13 Nov-13 Oct-13 Sep-13 Aug-13 Jul-13 Page 49 of 55

50 Page 50 of 55 prepared by the Municipal Water District of Orange County *Number are Subuject to Change % % 56% Lake Mathews 35% Lake Oroville % as of January, 3rd 2018 Million Acre-Feet Diamond Valley 81% San Luis Resv. 70% 113% Lake Shasta % of Capacity % of Historical Avg Million Acre-Feet Million Acre-Feet State Water Project, Colorado River, and MWD Reservoir Storage Million Acre-Feet Million Acre-Feet 84% 39% 54% Lake Mead 58% Lake Powell

51 Page 51 of 55 15% 10% 5% 10% Dec. 10% 10% 5% Nov. Jan. 0% 15% 15% 15% Water Year % 15% 20% 45% Water Year 2015 Feb. 0% 15% 30% 60% Water Year 2016 Mar. 0% 20% 45% 60% FOR STATE WATER PROJECT CONTRACTORS Water Year 2017 Apr. 5% 20% 60% 85% SWP TABLE A ALLOCATION Water Year 2018 May 5% 20% 60% 85% 1.62 MAF to MWD Final 2017: 85% Final 2017:??? 0.09 MAF to MWD Final 2014: 5% Jun. 5% 20% Final 2015: 20% 0.38 MAF to MWD 60% Final 2016: 60% 1.15 MAF to MWD 85% Final 2018:???

52 Page 52 of 55 Snow Water Equivalent (Inches) % % % % % % % % % % % % % % % Average = 28 Inches Historical Northern California April 1st Peak Snow Water Equivalent % %

53 Page 53 of 55 Snow Water Equivalent (Inches) % % % % % % % % % % % % % % % Average = 20 Inches Historical Colorado Basin April 15th Peak Snow Water Equivalent % %

54 Page 54 of 55 Elevation (Ft) Shortage Trigger = 1,075 ft Historical Projected Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 Jan 19 1,050 1,060 1,070 1,080 1,090 1,100 1,110 1,120 1,130 1,140 1,150 1,160 1,170 1,180 Lake Mead Levels: Historical and Projected projection per USBR 24-Month Study

55 Page 55 of 55 Elevation (Ft) Historical Projected Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 Jan 19 3,530 3,540 3,550 3,560 3,570 3,580 3,590 3,600 3,610 3,620 3,630 3,640 3,650 3,660 Lake Powell Levels: Historical and Projected projection per USBR 24-Month Study