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1 AGENDA IRVINE RANCH V/ATER DISTRICT FINANCE AND PERSONNEL COMMITTEE WEDNESDAY, SEPTEMBER 7, 2OII CALL TO ORDER ATTENDANCE 11:30 4.M., Committee Room, Second Floor, District Office Sand Canyon Avenue, hvine, California Committee Chair: Peer Swan Committee Member: Steve LaMar ALSO PRESENT Mike Bray Beth Beeman Debby Cherney Paul Cook Tanja Fournier Greg Heiertz Rob Jacobson Tony Mossbarger Christopher Smithson Janet Wells Gretchen Maswadeh COMMUNICATIONS Notes: Cherney. Public Comments. Determine the need to discuss and/or take action on item(s) introduced, which came to the attention of the District subsequent to the agenda being posted. Determine which items may be approved without discussion. INFORMATION 5. EMPLOYEE POPULATION AND TURNOVER STATUS REPORT _ RAMOS/WELLS Recommendation: Receive and file. OUARTERLY RISK MANAGEMENT REPORTING _ KANOFFIB RAY/JAC OB S ON/CHERNEY Recommendation: Receive and file. ACTION 7. REVISED PERSONNEL POLICIES AND PROCEDURES _ WELLS Recommendation: That the Committee recommend Board approval by resolution of revisions to District Policies Nos. 38 and 39.

2 Finance and Personnel Committee Meeting September 7,2011 PageZ ACTION Con 2012 MEDICAL INSURANCE COVERAGE RENEWAL _ WELLS Recommendation: That the Committee recommend Board authorization for the continuance of the District's health care coverage with CaIPERS for calendar year 2012 and approve the recommended changes in employee contribution levels as recommended. TREASURY SECTION 9. MONTHLY INVESTMENT AND DEBT REVIEW - FOURNIER/ JACOBSONiCHERNEY Recommendation: Receive and file. 10. INTEREST RATE SWAP NOVATION FROM CITIGROUP TO WELLS FARGO _ FOURNIEzuJACOBS ON/CHERNEY Recommendation: That the Committee recommend the Board approve novating the cunent Citigroup, N.A. interest rate swaps to Wells Fargo Bank, N.A. 11. DISCUSSION ITEMS _ ALL a. Updatedinvestment activities/rates b. Currency update and commodities 12. Items for discussion at next meeting: OTHER BUSINESS t3. A. Directors' Comments:

3 Finance and Personnel Committee Meeting September 7,201I Page 3 OTHER BUSINESS (Continued) 13. B. CLOSED SESSION WITH LEGAL COUNSEL RELATIVE TO: 1) Existing litigation - Government Code Section 5a956.9(a) - the City of Tustin and City of Tustin vs. IRWD, and SEMA Construction vs. 14. Adjourn. 2) Anticipated litigation - Government Code Section (b) - significant exposure to litigation - 17 cases - 8 claims filed under the Tort Claims Act, on file with the District, and 9 occurrences as follows: 9lI5l09 property damage at9i5 Rancho Santiago, Orange; , , and 5142 Equestrian Lane, Orange; and 5142 Glen Albyn Lane, Orange; Il28/I0 property damage at Meads Avenue, Orange, and 12130/L0 property damage at Main Street Units A, C/D, & E. Availability of agenda materials: Agenda exhibits and other writings that are disclosable public records distributed to all or a majority of the members of the above-named Committee in connection with a matter subject to discussion or consideration at an open meeting of the Committee are available for public inspection in the District's office, Sand Canyon Avenue, Irvine, California ("District Office"). If such writings are distributed to members of the Committee less than 72 hours prior to the meeting, they will be available from the District Secretary of the District Office at the same time as they are distributed to Committee Members, except that if such writings are distributed one hour prior to, or during, the meeting, they will be available at the entrance of the meeting room at the District Office.

4 FINANCE AND PERSONNEL COMMITTEE September 7,2077 Prepared by: Marta Ramos [f/rn,_ Submitted by: Janet Wellssq :,.\UJ Approved by: Paul ""2;5 EMPLOYEE POPULATION AND TURNOVER STATUS REPORT SUMMARY: Staff has prepared various population and tumover reports for Committee review. FISCAL IMPACTS: None. ENVIRONMENTAL COMPLIANCE: Not applicable. RECOMMENDATION: Receive and file. LIST OF EXHIBITS: Exhibit "A" - Employee Population/Tumover Status Report Turnover.doc 5

5 EXHIBIT A IRVINE RANCH WATER DISTRICT EMPLOYEE POPULATION STATUS REPORT August 2011 Ð,08t0y1 Current Month Activitv ør8ßutt FYILII2 Positions New Terms Promo Trnsfr Lateral Trnsfr LOA Positions Positions Budgeted Dept Nr FilIed IIires Vol Invol In Out In Out In Out Fi[ed I LoA Unlilled Positions* Avg FYTD Filled Budge' Positions Avg FYTX Temp Em FTE Avg FYTD Total Filled Positions Internal Turnover Current 20rt Period YTD External Turnover Current 20tl Period YTD l t-o % 0.00% 0.00% 5.06% O I % 0.00% 0.ooo/" 4.93o/" % 3.16% 0.00% 15.81% O 2 I '77.5 t.2 7E % 0.00% 3.80% 10.1(to/" I s o/o l.8lo/o 0.00% t.8t% % 0.00% 0.00% 8.21o/n O % 7.73% 7.69% 3.86% Totals I ) 295.O 3 l o 1.35o/o l-690/" 7-O8o/" 8/ ,, I I I o/" 0-33o/o l.3lo^ 3.29o/" Turnover by I)epartment August 2011 Turnover by Department August YTI) 15.81% t0.t6% ffi ffi ffi t.69% re 5.06% 4q7o/" 00% ffi t,8t% n nnorffi (t î.'or 0 000/. *Budgeted positions will be reduced to 82 in Dept. 40 and 307 District-wide, pending retirement 1 1/201 1 A-1

6 IRVINE RANCH WATER DISTRICT TURNOVER STATUS REPORT AUGUST 2011 Dept. Jan Feb M I Apr Mav Jun Jul Aug sep Oct Nov Dec YTI t0 YTD Turnover Longevitv Ratio < 1 Year 1Yr.<3Yrs. 3 Yrs.<SYrs. 5 Yrs.<10 Yrs. 10 Yrs I I I 7 50 I 60 1 I I I 70 2 I l01l Total , Data I t 4 0 I 0 I 12 Percentage of Total Turnovel 0.000/" l6-67o/" 0.00% o/o 2011 AverageYTD Length ofservice at Termination Years 10 Average YTD Length of Service at Termination Years 2009 Average YTD Length of Service at Termination Years 2008 Average YTD Length of Service at Termin tion Ye rs 200TAverageYTDlength of ServiceatTermination Years 2006 Averase YTD Lensth of Service at Termination 6.48 Years Average Length of Serv ce at Term nation AUGUST YTD 2010 vs. 20't1 '1007o 90o/o 807o 70% 60% 50o/o 40Yo 30o/o 20% 100/o oolo ru n nno/^ O OOo/.." liiiriririiiìi < I Year 1Yr.<3Yrs. 3 Yrs.<5Yrs. 5 Yß.<'10 Yrs. l0 YE.+ ffi A-2

7 IRVINE RANCH WATER DISTRICT EMPLOYEE POPULÄTION STATUS REPORT AUGUST 2011 NEWHIRES Hire Dept emnlovee Name Position Comments uò/u l/ I I JJ racq rcnrunglon Marnlenance Mechanlc 08/29/11 24 tessie Muncy Buya 08/01/r 1 08/01/1 1 08/08/1 r 08/26111 Jorge Borroto John Malek Said Sultan Natalie Pavlovski ter Maintenance Techlician Itr Water Maintenance Technician l Engineering Technician III Water Use Efficiency Analyst PROMOTIONS/DEMOTIONS 08/01/i I 08/16/1 l 08/ /16/1 I Richard Tones Dave Chaney Engineering Technician tr Water Maintenance Technician Collections Systerns Technician I Engineering Technician III lections Systems Technician II l,necüve Date 08/0 I /11 08/01/1 I TRANSFERS Departing DeDt Emnlovee Name DeDârtins Posit on New Dept New Position )I Alex uona lollection Systems Technician tr 55 Operator 42 Rory Moore )perations Supervisor 43 Operations Supervisor!II CUYC Dâte LOANED/BORROWED POSITIONS Departing Dept Position/Salarv Grade New Position/Salarv Grade New Deot Comments UNT'ILLED POSITIONS Dept Position Salarv Gr de Comments l XXtr Recrulhng q) Generaì Manager Executive Secrekry Electrical & Controls Project Manager Construction & Repair Manager Operator m Water Maintenance Technician III Water Maintenance Technician Itr Collection Slsterns Technician I Engineering Technician Itr IVater Use Efficiency Analyst 16 1ó xxd( XXVI XXVI XV xxd( XXXI Cross-training Recruiting Recruiting A-3

8 IRVINE RANCH \ryater DISTRICT EMPLOYEE POPULATION STATUS REPORT AUGUST 2011 Type of Leave Type of Leave Original Status SDIil PFLw/ SDIw/ Original Status PFLw/ PFLw/ SDIú SDIw/ PFLw/ SDIV// PFLw/ SDIw/ WCw/ WCw/ SDI w/ PFLw/ SDIil SDIW SDIw/ SDIw/ SDIW SDIw/ SDIl // SDIw/ SDIW SDIw/ SDIw/ SDIw/ WCw/ SDIw/ PFLw/ PFL w/ SDIW SDIw/ SDIil SDIw/ PFLw/ SDIil LEAVEOFABSENCE Final Sfâfrrs I)ent- No- Emolovee Name Position PFLw/ PFLw/ SDIil SDI w/ PFLw/ SDI w/ PFL w/ SDIW SDI\v/ SDIw/ SDIil PFLil SDI w/ SDIw/ SDIil SDIw/ SDIw/ SDI w/ SDIw/ SDIil SDIw/ SDIw/ SDI w/ SDI w/ WCw/ SDIil PFL w/ PFLØ SDI w/ SDIil LTD PFLw/ PFL w/ SDIw/ Mìke Püington George Sanchez Tina Bertsch Operator III Water Maintenmce Technician III Sr- Accoutânt Final Stâtus D Dt No. Employee Name Position 55 Pio Reynoso Operator II 59 Dave Chaney Collection Systems 30 JeffSmyth Engineer/?lanner 24 Senior Buyer t Lisa Bates Al Alfaro Carol 'n German David Chia MikeHoolihan * Antonio Cid Pomaao Vaielua Mike Purington Frank Tesse s Jr. Tom Bonkowski Lisa Bates Gilbert Ovalle Rene Bravo Kristen Koenig Ofelia Bailey Tom Ralph Angel Lupisan Beth Beeman Dawn Jordan Diare Blasick Matt Daniel Colt Martin Debby Chemey Rudy Perez Reynoso, Pio Ken Pfister Meg Di lullo John Malek Liz Dmrte l_ lcostantrno Sllva I lcindy Pavelic Wetlands Specialist Admìnistrative Assistant Senior Scientist Principal Engineer Facilities Services Technician Customer Service Specialist I Operator III Mail Coordinato Engineering Technician III Buyer Facilities Services Superuisor Customer Service Fìeld Technician Customer Service Specialist III Accounting Supervisor Customer Service Field Technician Accouting Clerk Director of Public Affain Office Specialist Executive Secetåry Water Maintenance Technician II Water Maintenance Supervisor Director offinance Senio Scientist Operator II Operator III Customer Seruice Specialist II Wâter Mâintenânce Tmhnician I Analyst lutilitv works laccounting Clerk Date Le ve 3/30/2011 8/t0/2011 8/26/2011 Dâte Leave R qan t1/ t /20/20r0 12/16/ /2011 1t /27n0t0 01t t6/20r0 2/1/2011 2/3t2011 3/11/2011 2/28/2011 8/ r2110t2010 2t7t20t1 3/17/2011 3/5/2010 5/2t /16/ /2011 2/22t /2011 3/17t2011 6/1st lßn0 6n2/20r t2011 8t30t2010 stst2011 6/27/ Anticipat d Return Date 9t30t20tl 9/2/2011 9t12/2011 Expect d f.enofh 6 Months 4 Weeks 2 Weeks Anticipâted Expected Actual U4/2011 1/17/2011 1/ t20t1 2t1t2011 2/7/2011 2/21/ l28lz0t1 311/2011 4/30/ /2011 3/ l2ll20Ú 411/2011 3/16t2011 4/ /2011 5/1t s/ t16t20t1 6n/201r 6t2/20r1 7/ lz0t1 st30t20t1 71s t27/ /11/201r 7/3/2011 8t1120t1 8lr/2011 8/15/2011 8/15/ Weeks 5 Weeks 4 Wæks l Month 4 Weeks 3 Weeks 7 Weeks 5 Months 25 Months 12 Months 6 Weeks 6 Weeks 10 Days 4 Weeks 8 Months 16 Weeks 3 Months 6 Weeks l3 Months 2 Weeks 3 Weeks 4 Weeks 4 Months 6 Weeks 13 Weeks 3 Weeks 2 Weeks 3 Wæks 3 Weeks 3 Weeks ll Months 3 Months 6 Weeks 4 Weeks 1/4/201) 1/17/ /201 1/ /1t201. 2/7/201. 2/22/ t1' 03/01/1 03/0711 3/14/201 3t18/201 3/21/20t 3/28t201 4/2/201 4n8/201 5/2t20r 5/ / /201 5/31/201 6/2t201 6t2/201 6/8/201 6/ /05/l 06/ lt0l1 07/11/t 07/ /01/r 08/01/1 08/15/1 08/22n Comments PT PT PT Rehmed Te minated Retired Passed Away Retired Terminated * Intermittent Leave - Not lìsted on Population Status, only Leave ofabsence A4

9 Month Emnlovee Name Dent Position Januarv None IRVINE RANCH WATER DISTRICT EMPLOYEE POPT]LATION STATUS REPORT AUGUST 2011 Length of Emnlovment Termination Vol Invol February Lou Denger 42 Wetlands Scientist X Retired Comments Don Geiser 42 Ooerator II 27 vears& ll months x Retired March None April Carrie Bradley 22 Customer Service Supervisor 30years&lmonth X Retired Mary Celaya 22 ustomer Service Specialist I 2Tyears&3months X Retired Steve Cormack 30 Senior Network Administrator 18years&0months X Lay Off Jim Hvde 66 Environmental Compliance Specialist 33years&3months X Lay Off Richard Kelly 25 Programmer/Analyst ltyears&0months X Lay Off 'Water Jim Konves 45 Maintenance Superrrisor 2lyears&3months X Lav Off Gilbert Ovalle 47 Facilities Services Supervrsor 19years&3months X LayOff Hendrick Scholten 30 Process Automation Manager Svears&3months X Lav Off Lisa Bates 24 Buyer 2years&3months X Terrninated May Ofelia Bailev 21 Accounting Supervisor 20 vears & 1l months X Retired Iom Raloh 22 Oustomer Service Field Technician 12years&5months X Passed Awav Iune Andrew Oldham 63 Scientist 2vears&3months X Relocated Mike Miller 42 Ooerator III 34vears&6months X Retired Noah Sanchez 59 Operations Manager 36years&6months X Reti ed Diane Blasick 30 Executive Secretarv 13vears&9months X Retired Julv Ron Crim 30 Electrical & Controls Proi. Mgr. 26vears&2months X Retired Paul Jones 11 General Manager 12vears&5months X Other employment August Iohn Palomares 43 Construction & Repair Manager 33 vears X Retired Iorse Borroto 45 Ensineerins Technician III 23 years & l0 months X Retired Iohn Malek 45 Water Maintenance Technician I 2vears&2months X Terminated Said Sultan 7l EnEineerins Technician III 28 vears X Retired Natalie Pavlovski 71 Water Efficiencv Use Analvst 6 years & l1 months x Cther emolovment September October November December A-5

10 Active Current Month F'TE Avg FYTD Temp Emp F'TE Active PERS Y/N * Agency Dent Emolovee Name IRVINE RANCH WATER DISTRICT SUMMARY OF TEMPORARY AND CONTRACT EMPLOYEES AUGUST 2011 Hire Date Term Date Classificatio.Iob Title Hourly Râte Est llours per Month Est Cost Per Month uontract Length {Monthsl Actuâl Worked /Mônrh.ì Projected Cost FY'YTD Actual Cost F'Y'YTD t r 0.95 r.00 o.2t No )1' r r s )tt s o Yes No No Yes EXC No No EXC EXC Yes No Yes Yes No No RET No No No No RET EXC EXC 25 2t 2l l 7L Alan Hoetker Maria Aranda Scott Holder Jane Hyde Michelle Klein Bryce Danker Holly Jensen læalani Mafuli Dylan LaFrance Jennifer Lin Rudy Ocampo Rex Rajewski Cody Cariker Brandon Bowman Jared Pennington Robert Ashby Arita Mannix Alex Tang Katrina Nguyen Will Seith Patricia Engel Rick Samuel Rebecca Shum Andrew Han 4n1/2011 4/6/2N9 7t26t20ll 7t27t20tt 6n1n010 6n9t2010 6t20n0tl 6t20t20tt 7A3t20tt 7lt8t20rr 9/ßnolo t2n/2010 9/t6t20t0 tononoos 12t6t20to 1U8n0t0 6n9tzoot 1tt4/2û9 9^t20to 4t1t2æ8 4t25l20tl 1t2U2009 1^9n0to 7/r8n0t1 8^A2011 Tntnotl 7t16t2011 7n6n0tt 8^t20lt 7n8/2011 7lt6t20tl 7tzgtzj rull Time r-ull Time iull Time r-ull Time Full Time Part Time Full Time Full Time Part Time Pan Time Full Time Full Time Full Time Full Time Full Time Full Time Pan Time rull Time iull Time rull Time rull Time :-ull Time?an Time lârt Time Mail Coordinator Programmer/Analyst Office Assistant Accounts Payable Cl Programmer/Analyst Student Intern Office Specialist Office Assistant Student Intern Student Intern Jtility rùy'orker Jtility Worker ilater Maintenance :-acility Serv Tech Maintenance Mech Maintenance Mech Executive Secretary Scientist Scientist Scientist Office Assistant Ëng Tech III Student Intern student Intem l7.u t r.t2 3t.12 3r.12 r z r , , , ,375.æ 7, , ,520.æ 2,352.W 2, ,184.ffi 2, , ,r92.æ 3, , , , ,228.t6 5, , , ,720.N 1, _00 3 t2 12 t2 t2 T t2 T2 9 9 t I2 t I o.z I 0.75 I I I I I I I 0.75 I 0.7s 0.75 I I 0.5 7, , r, , l, ,520.ú 2,352.æ l, t, l, , , , , , ,92r.12 5, , ,720.O0 r, , , , s s.OO 7, , , , , I, ,887.3 l 4, , , ,692.t2 3, I, ,477.t2 5,477.r2 4, r , Terminated T Currenl Month F'TE Avg FYTD Temp Emp ú.tú' *Full Time Agency Deot Emnlovee Name Hire Dâte Term Dâte Clæsification Job Title Hourly Rate lrst Hours per Mnnfh Est Cost Per Month uontract Length lmnnfhsì ACtUal Worked lmnnfhcl rrojecled Cost YTD ACtUâl Cost YTD No ìuth Kennedy v4noro 6t30t20tt Pan Time Just Srvc Spec. I u0 l, T2 lt ?7.56 EXC EXC )ouglas Moon tay Go 7t6t2009 6t2sno\o 6nnot1 6t4t20l Pan Time Part Time iludent Intem Jtudent Intern r , t2 t2 u u l 3, , , I r No 63 )iego Gavia 4t20t2æ9 8t19n0n Full Time lcientist 3r.t , t2 r.75 9, , No No 7l 7l Vlichael Green )iane Squyres ut3t20t0 U19t20IO 9n4l20to 9t24t2010 iull Time )an Time :onservation Spec Jffice Assistant 5.00 ttt , , l2 t , r0, , RET = Retired Annuitant working less than 9ó0 hrs/yrlno=temporary Emp ry Employee not yet at 1000 hours EXC = Exclude by PERS Contract / Yes= Temporary employee cnrolled in PERS Membership A-6 * Temporaries are reported 30 days in anears

11 25,00 Temporary Employees Fufl Time Equivalency lhtu7l31l

12 September l,20ll lh Prepared by: Kanoff/BraylJacob$dn Submitted by: Debby Cherney VL- Approved by: paul,oy rnfl, FINANCE AND PERSONNEL COMMITTEE STIMMARY: OUARTERLY RISK MANAGEMENT REPORTING Staff will provide the Committee with a report on the insurance and claim expenses incumed by the District during the Fiscal Year (FY) ended June 30, z}n. BACKGROUND: Premiums for the District's insurance policies for FY totaled $490,169 and are $20,831 under budget. Actual losses and claim administration expenses for FY totaled 892,739 and are $68,739 over budget. In total, actual premiums, losses, and claims administration expenses for FY 20IA-11 were 547,909 (or 8.95Vo) over budget. The overage is primarily comprised of loss payments to third parties, for which no amount was budgeted in FY and was deducted from the loss paying fund at fiscal year end, leaving a balance $407,910. A comparison of the District's budget versus actual insurance expenses for FY 2009-rc and FY is attached as Exhibit "A". Reserves for losses and expenses on open claims were set at574,799. Two claims were opened during the three months ended June 30, 2077, and four claims were closed. The Closed General Liability Claim Register, presented as Exhibit "B", identifìes all general liability claims closed during the 12 months ended June 30, 2An. The Closed Claims ContractlOther Litigation Register, presented as Exhibit "C", identifies all non-general liability claims closed during the 12 months ended June 30, Due to possible litigation, the open claims analysis is provided under separate cover in closed session. FISCAL IMPACTS: Fiscal impacts are outlined above. ENVIRONMENTAL COMPLIANCE: This item is not a project as defined in the Calilbrnia Environmental Quality Act Code of Regulations, Title 14,Chapter 3, Section RECOMMENDATION: Receive and file. LIST OF EXHIBITS: Exhibit "4" - Insurance and Claims Loss Expense Exhibit "8" - FY Closed General Liability Claims Register Exhibit "C" - FY Closed Claims Contract/Other Litigation Register Qtrly Risk Mgmt.doc 6

13 INSURANCE AND CLAIMS LOSS EXPENSE Budget vs. Actual as of June 30, Exhibit "A" Premiums: Property, Boiler & Machinery General Liability Crime IDP Pollution Subtotal Glaims Losses & Administration: Below Deductible Losses: Prior Year lncurred Budget $ 204, ,200 9,600 $ 495,600 $ Actual $ 202, ,293 8,259 32,839 $ 498, I ZZ,+Ot Current Year lncurred Bodily lnjury Vehicle Damage - Collision Vehicle Damage - Other Prop. Damage - Other ,75; 130, $ 160, Third Party Claim Admin. & Legal 40,000 14,319 Subtotal Losses & Claims Expenses $ 40,000 $ 175,301 Rec'd from CSAC-ElA Other Admin. Expenses Subtotal $ 40,000 $ 175,301 $ gz,zsg $ (68,73e) Total General lnsurance Expense $ l41,39q $ 673,356 $ sez,gos $ (47,909) Reserve for Losses & Expense - Open Glaims (Exhibit "8") Total Expense and Reserve for Open Claim Losses Balance; General lnsurance Loss/Payment Fund as of 06/30/1 1 $ 407,910 * Crime policy for 711l1O-711/11 of $8,259 paid and expensed in 09/10 was below $25,000 accrual limit for amortization in 10/1 1.

14 CLOSED GENERAL LIABILIry CLAIMS REGISTER as of 06/30/1 1 Exhibit "8" lncidenl Date Claimant Cause Description Type Reserves & William Scholle Damage - Resident al Damage - Personal 2t24t10 :::::::::::::::r:::::::::::::::::::::::::::::::::::::::::::::::::::: :: r I 9 10 OPA 16" Main Break - 1/28/10 1/28110 lbernard Burger - Prop. Damage - Resident al 1/28110 landreas Kronenberg - Prop. Damage - Resdential Sub-total OPA'16" Ma n Break - 1/28/10 Less: Beimbursement rcc'd trom CSAC-EIA Diâtrict's Self Insured Betent on PY PY 1,529 88, , ,000 9/29110 llmperial Sprinkler I IO.C. Fleet Servicê Property Damage - Personal lc 8/12109 l:ltl:l:lt:tltl:l:)tltltltltltllltltltltttt:ltltttttltltttl:ltttttl:ttl /20t07 18 I 3/11/08 Kuszkiew cz ury IrtiP-t Damage - Resident al 82 7,124 Property Damage - ResÌdential 638 B-1

15 CLOSED GENERAL LIABILITY CLAIMS REGISTER as of 06/30/1 1 No. Incidenl Date Claimant Cause Description ïype Reserves Current FY Cumulative Loss Expense Sublotal Loss Expense Subtotal IR\ Total 20 7nn0 i:iririrr:irr:rri:iri:r:irirr:r:r:::::r::::::::::::::::::::::::::j: ::::.:r:{rj r::t::rr:::::::::::::::::::::: Plgp rty -D?mesg : Regidglli9! ccþ I,óc I '1, /13/07 Al ce Lee (HATS) PY ::::::::::::::::::::: 1,962 l:lilil:l;i;l:i::jì]iíij;il:i j:::illiiiil -iltj:] j 53 2,015 2,015!,',,î,,,,P,,înn,,oe'eg;,,.i,, îtlq*oíi /1 8/08 Pamela Kus lek PY 1'.9.p..9'tv D?'?99 : B99iq9!lL?l tiili I tli:l:ìtl:ltl:l 4110lo8 i:r: :i:i:i:l:l::::::::::::::::::::::::::i:il Caroline Harwood PY Propgrty Dgmage : Resiqeluq! i::i:::rii:::::i:tj:i:iìi:i:t:iiìirtriri:iriri:i:i::::ri::i:::t:::i:::i:::i::::::::::: :::::::::::::::: ÞtÞ /29110 Saba Amhad Property Damage - Residential !lllll!lil!lili:i:i:ii:itilii:ii 8122t10 iilriilrr:r:rrrlrllllrlrlrlrlrlrl:lrlrl:l:lrlrtrtr:ltrt::tl::::::::: Sean Laverty Plooertv Dama99,,r.,,"99i9911n1,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, '128 rl flìiì '128 a /10 Steve Scoggin 09dv.oe'ev" f't'l' YutiWang r'"t"i0tnl"1... PY _ / :lr.:j i l t i t i i i t t::: i i i:: i:: i t: i:::::: i::: i:::: 366 P.rop-e-rty Dqmege..: Regidential /28110 Monica Mondragon Propertv D?m?gg...i.."tgiogtri" iiiiiiiiii:i:iliii:i::::l:::::::::::::::l:::::::::::: /31t10 SC Regional Rail Authority prop:rry Dgm?q9 : *c$.:1t"1,,,,, :::::::l:l::::ilt:t:::t:::::::: :::::l::::::::::::::::::i:::::::::::iii 30 ól óþ / t t21t /07 8t21t /07 a/211o7 al21l07 8n1/07 8t21/07 at21/07 Shady Canyon incident Scott & Jennifer Graham Ryan Palrìck Lesl e & Alex Ladjevardi Pamela Schmider Doug/Kendra Bennett Ken EÞerhard Keith Aram Bruce Og lv e Mr. Cordeno Yossie Hollander Dan Hedigan Raymond & Susan Moore PY PY PY PY PY PY PY PY PY PY PY PY t óó ój ao ao Jó óó ' IJ ój ló tó g ìubtotal - Closed Claims - General Liabilitv $ $ $ $ $ $ $ $ ìubtotal - Open Cla ms - General L ab lity $ 74,799 $ 75,536 $ 8,278 $ 83,814 $ 93,211 $ 13,432 $ 106,643 $ 181,442 ;ubtotal - Open Cla ms - Contracvother ìubtotâl - Closêd Clã ms - Contracvother $ 50,000 (_ $ $ 456,726$ 456,726 (-(_c $ -$ 654,292$ 654,292 q,aãnnn 4. 17Re7t 4. AA at) $ 704,292 q. ^^ ejt lotal claims s $ $ s $ s s 1_ s B-2

16 Exhibit "C" CLOSED CLAIMS CONTRACT/OTHER LITIGATION REGISTER as of 06/30/1 1 No. CLOSED CLAIMS Claimant Cause Description Reserves Gurrent FY Cumulative Loss Expense Subtotal Loss Expense Subtotal lb) Total 1 State ex rel. Armenta v. James Jones Company et al; - 128, , ,946 Legal 128, ,946 Lonerock, lnc. Construction Contract Dispute Legal 265,000 46, ,426 46, ,426 Iotal Closed GIaims - ContracUOther 2009/10 $ $ $ s $ 265,000 l$ $

17 September '7,20II Prepared and Submitted by: Janet Wells Approved by: Paul Coo/4 Z- FINANCE AND PERSONNEL COMMITTEE SUMMARY: REVISED PERSONNEL POLICIES AND PROCEDURES Staffhas developed the Personnel Policies and Procedures to consistently address personnelrelated issues at the Irvine Ranch Water District. Revisions to any of these policies must be approved by the IRWD Board of Directors from time-to-time to keep current with state and federal law, to adopt best practices in administering Human Resource policy, and to correctly reflect practices adopted in conducting District business. Staff recommends that the Board:. Approve the revisions as detailed below, and o Adopt a resolution establishing revised personnel policies and rescinding Resolution No. 20Il-28, dated July 11,2011. BACKGROUND: Staff has reviewed the policies below and identified a need for revisions to the following policies: o Policy No o Policy No Safety Shoe and Prescription Safety Eyewear Policy Deferred Compensation Plan Redlined copies of the proposed revisions to Policies 38 and 39 are attached as Exhibits "4" and o'b", respectively, and summarized below: Policy No Safety Shoe and Prescription Safety Eyewear Policy: Policy has been revised to reflect that specific standards for safety shoes are set by the American Society for Testing and Materials (ASTM) F , andf24l3-05. Revisions also include walking shoes for Leak Detection employees. Policy No Deþned Compensation Plan: Policy has been revised to specify compensation that may be included for employee deferral and to designate the timing of deferral elections and/or changes based on the District's move to a bi-weekly pay system. Although additional compensation such as overtime has been included as eligible for deferral, the District will continue to only match up to 3Vo of the employee's base salary. FISCAL IMPACTS: The FY 20ll-12 Operating Budget already includes funding for the policy changes contemplated herein. Policy Revisions No l doc 7

18 Finance and Personnel Committee: Revised Personnel Policies and Procedures September 7,2011 Page2 ENVIRONMENTAL COMPLIANCE : Not applicable. RECOMMENDATION: That the Committee recommend Board approval by resolution of revisions to District Policies Nos. 38 and 39. LIST OF EXHIBITS: Exhibit 634" - Proposed Policy No. 38 Exhibit "B" - Proposed Policy No. 39 Exhibit úúc" - Resolution Establishing Revised Personnel Policies for Policy Nos. 38 and 39

19 Exhibit "A" IRVINE RANCH WATER DISTRICT PERSONNEL POLICIES AND PROCEDURES MANUAL POLICY NO SAFETY SHOE AND PRESCRIPTION SAFETY EYEWEAR POLICY l. Purpose of Policy The purpose of the Safety Shoe and Prescription Safety Eyewear policy is to ensure that District employees are equipped with proper foot and eye protection for personal safety while performing their assigned job duties. 2. Safety Shoe Specifics A. Eligibte Employees The following employee classifications are required to wear approved foot protection: l) Department 20 employees in the following positions: Customer Service Field Technicians, Material Control Clerks, Mail Clerks, and all Purchasing Department employees when working in the warehouse and when conducting job walks. 2) Department 30 employees in the following sections: Construction/Inspection and Engineering personnel assigned to the field. 3) Department 40 employees in the following sections: Fleet Services, Preventive Maintenance, Construction and Repair, Systems Operations, and Facilities Services. 4) Department 50 employees in the following sections: Mechanical Services, Electrical Services, Collections, Plant Operations, and Los Alisos Water Reclamation Plant (LAViRP). 5) Department 60 employees in the following sections: Environmental Compliance and Laboratory Services. B. Special Circumstances Other employee groups may be required to wear foot protection in some instances. This requirement and any ensuing reimbursement will be made at the discretion of the District's Safety Office. 3. Supervisorfs Responsibility A-1

20 POLICY NO.38 - SAFETY SHOE/EYEWEAR Supervisors and managers are responsible for ensuring that employees in their departments wear appropriate safety footwear and eyewear. Supervisors will not allow an employee to work if he/she is not wearing the appropriate safety footwear andlor eyewear. Laboratory personnel will wear shoes with non-slip soles. Shoes for this area will be evaluated for this purpose. The laboratory environment is more at risk for spills and slippinghazards. All others shall have a safety toe as required by the American Society for Testing and Materials (ASTM) F and F24 I NSlZllstandard. Supervisors should encourage employees to use rubber boots when working in extremely wet situations to lengthen the useful life of safety shoes and boots. 4. Employeers Responsibility Employees are responsible for purchasing safety shoes that meet the '{}{S{_?11éSIM F andf24l3-05 standard. Periodically, a mobile safety shoe unit will be at the District to sell safety shoes for the employees' convenience. Only shoes meeting the standardg will be sold on the mobile safety shoe units that come to the District for the sale of safety shoes. Shoes purchased from retail stores must meet the same requirements. Employees are responsible for wearing safety shoes on the job when required, and will not be allowed to work without the appropriate footwear. 5. Safety Shoe Reimbursement A. Reimbursement Amount Employees are divided into thre+fouf_categories in terms of determining their eligibility for safety shoe reimbursement. The categories are as follows: Category 1 - Employees with the majority of the workday spent in the field performing construction, maintenance, or operations functions including mechanical work, shop work, and other functions which are predominantly performed outdoors. Category 2 -Laborutory and some purchasing functions. Category 3 - Employees who spend 50% of the workday indoors, such as support personnel or other administrative personnel. Category 4 - Employees responsible for leak detection services. Employees classified as Category I will be reimbursed up to one hundred, f,rfty dollars ($ ) per calendar year for safety footwear. Employees classified as Category 2 will be reimbursed up to one hundred dollars ($100.00) per calendar year. _Employees classified as Category 3 will receive one hundred dollars ($100.00) every third calendar year or as required when a need is demonstrated. Emplo) ees classified as Catesorv 4 will receive up to one hundred dollars ($100.00) annuall] for the purchase of up to one pair of walking shoes per year in

21 POLICY NO.38 - SAFETY SHOE/EYEWEAR addition to an) elieibility for Category 1 reimbursements. Any amounts not utilized may not be carried forward or accumulated. B. Reimbursement Procedure Employees must submit safety shoe purchase receipts to the District Safetyl& Securitv O-effice for reimbursement. A petty cash reimbursement form will be completed and approved by the Safety Office and returned to the employee for processing by the Purchasing department. Petty cash reimbursements are limited to $ Shoe receipts exceeding this amount will be processed on a District Expense Report and submitted to Finance by the Safety & Security Office. C. Other Considerations Special shoes, such as orthopedic safety shoes, will be reimbursed. The annual allowance for these physician prescribed shoes will be one hundred fifty dollars ($ ) per year. i n=safety shoes that are worn out or unserviceable due to working conditions before the employee's next annual shoe allowanco may be replaced on an exception basis. In such cases, the employee shall provide the wom shoes to the District Safety & Security Office for inspection. If the shoes are determined to be unserviceable, the employee will be authorized to replace the shoes with one additional pair of shoes up to the allowance described in section 5 A. r eak Ðeteetien The cost of shoe sprays for waterproofing and the cost of insoles, when requested, will be reimbursed at the discretion of the Safety Office and will not be deducted from an employee's shoe allowance. 6. Prescription Safety Eyewear Reimbursement The Prescription Safety Eyewear Reimbursement Policy applies to District employees who need prescription glasses and who are required to wear safety glasses as part of their normal job duties. Non-prescription safety glasses are provided by the District for all job tasks that require safety glasses. To be eligible for District-provided prescription safety glasses, an employee must have a current prescription, obtained within the last 12 months. All safety eyewear must meet ANSI 287 standards. The eligible classes of employees are detailed in Paragraph2.A. of this policy. A. Reimbursement Amount The maximum allowance for prescription safety eyewear shall be ninety-five dollars ($95.00) for single vision glasses, one hundred fifteen dollars ($115.00) for bifocals and one-hundred twenty-five dollars ($125.00) for trifocals. Employees may elect to pay for options in excess of the approved allowance. A-3

22 POLICY NO SAFETY SHOE/EYEWEAR B. Reimbursement Procedure To be eligible for reimbursement under this policy, employees are required to follow this procedure: 1) Complete a Prescription Safety Eyewear Application Form (available from the Safety & Security Office). The Safety & Security Office will approve the application and supply the employee with a referral form with the namo and address of the approved optometrist. 2) The employee mayuse a cuûent prescription (obtained within the last 12 months), or may obtain a new prescription by having his/her eyes checked and covered under the District's group vision coverage. 3) The Application Form and prescription are then taken to the District's designated optometrist for the employee to select his/her eyewear and for initial measurement. 4) After receipt of the safety eyewear from the optometrist, the eyewear is fitted and adjusted to the employee's satisfaction. 5) Any amount exceeding the allowance stated in Paragraph 6.4. above is the responsibility of the employee. C. Special Restrictions and Clarifications The prescription safety glass allowance is available to eligible employees once in a calendar year. Any money not utilized may not be carried forward or accumulated. 7. Administrative Responsibility The District Safety & Security Office is responsible for the administration of this policy. APPROVED: 20tl Director of lluman Resources Ðeeembe+*í. Z0e3September 1 2. Date 20tl General Manager A-4 Ðeeæber4l.-Z0e3September I 2. Date

23 Exhibit "B" IRVINE RANCH WATER DISTRICT PERSONNEL POLICIES AND PROCEDURES MANUAL Ro"r,,rcY N9. 3e : uejflurßep COMPEN$êI'TIoN ILANJq-lrrçY l. Purpose of Policy The primary purpose of the District's deferred compensation program is to enable employees to defer portions of their compensation as a supplement to the PERS retirement plan. The District has established a deferred compensation program available through two plans: o IRS Section 457 Deferred Compensation Plan ("457 Plan") o IRS Section 401(a) Money Purchase Pension Plan ("401(a) Plan") 2. Eligibitity and Enrollment Upon employment with the District, all regular, full-time employees of the District are eligible to defer compensation to the 457 Plan. Employees are responsible for initiating the dollar amount or percentage to be deferred, selecting investment allocation of amounts deferred, and designating primary and contingent beneficiaries. If an employee fails to allocate deferrals, the funds will be automatically deposited into the Conservative Profile fund. Additionally, in accordance with Personnel PolicyNo. 7, pertaining to the OBRA Act of 1986, some temporary employees are required to contribute to the 457 Plan. Temporary employees are limited to the Conservative Profile fund or stable value investment option. (See "Policy No. 7 - Temporary Employees"). Employees may defer compensation for any calendar month, providing the deferral election is made no later than the last b period in which the deferral election is to begin. 3. Available Plans and Deferral Limitations A. The 457 Deferred Compensation Plan - Employee Contributions The 457 plan is available for employee contributions only. The minimum amount of contributions is ten dollars ($10.00) per payperiod. The maximum amount employees may contribute to the 451Plan is the lesser of 100% of Includible Compensation or the maximum allowed by law. Includible Compensation is generally defined as base compensation. but mayjneluéible B-l

24 POLICY NO DEF'ERRED COMPENSATION PROGRAM include overtime, stand-by, and paid vacation and/or sick hours during unpaiêabsences such as medical leave. Once a year, the District will provide employees the option to transfer a specified amount of accrued vacation time into the 457 Plan (See "Policy No Vacation"). Once a year, the District will provide employees the option to transfer a specified amount of accrued sick time into the 457 Plan (See "Policy No Sick Leave"). B. The 401 (a) Money Purchase Pension Plan - District Contributions The 401 (a) Plan is for District contributions only. Matching Contributions An employee who has completed one year of regular full-time service with the District is eligible for a District matching contribution. Beginning with the first month following an employee's one year anniversary date, the District will deposit to the employee's a01(a) Plan account an amount equal to 100% of the amount deferred by the employee during each pay period up to a maximum of 3o/o of the employee's base salary for each pay period. Once an employee has deferred an amount equal to 3% of his/trer annual salary during the calendar year, the matching deposits to the employee's Deferred Comp Plan account will continue each pay period in an amount equal to 3o/o of the employee's base salary even if the employee is no longer making contributions. The District does not match deferrals in excess of 3olo of the emplovee's base salary. 4. Participant Options A. Changes to Deferral Amount Employees may change the amount of compensation to be deferred in future pay periods, including the option to change the deferral amount to zero ($0). Defenal changes must be made no later than the Z3ddafef+he-msnttspriertetheeftetive which the deferral election change is to begin. B. Catch-Up Contributions "Age 50 Catch-up" Contributions: At any time during the year in which an employee will attain age 50, they are eligible to make additional elective deferrals, up to the maximum amount set by law for that year. Employees may not participant in the "Age 50 Catch-up" during the same time they are making additional contributions under the "Last-three-years" provision below. B-2

25 POLICY NO DEFERRED COMPENSATION PROGRAM POLICY "Last-Three-Years" Catch-up Contributions: Under this provision, an employee who underutllized the applicable deferral limitations after December 37,1978, may make additional deferrals in an amount not to exceed the lesser oè- (Ð Twice the otherwise regular dollar limit. For example, if the regular annual deferred contribution limit is $16,500, an eligible employee may be able to defer up to an additional $16,500. (ið The amount that was underutilized in previous years after December 31, The catch-up provision applies to any one or more of an employee's last three (3) calendar years ending before such employee attains normal retirement age. Normal retirement age shall be considered the range of ages beginning no earlier than age 50 and ending no later than age The normal retirement age chosen upon election of this catch-up provision is irrevocable for determining the three year period. 5. Administration of the Program The District may contract with one or more investment providers to provide investments, education, and record-keeping services for the Plans. The District's Plan Administrator shall administer the Defened Compensation Program and shall submit action or informational items to the District's Finance and Personnel Committee and/or Board of Directors as necessary. A. Ownership of Funds All amounts deferred under the Plans are held in trust for the exclusive benefit of the participants and their beneficiaries. B. Claims or Liens Against Assets Neither the existence of the deferred compensation Program nor the individual deferred compensation accounts shall entitle any participant, beneficiary of any participant, or a creditor of any participant to a claim or lien against the assets of the individual deferred compensation accounts. The participants and their beneficiaries shall only have the right to receive benefits pursuant to the Plans. C. Statement of Accounts 7. Distributions The deferred compensation investment provider will be responsible for providing account statements no less frequently than quarterly. A. Termination of Employment B-3

26 POLICY NO.39. DEFERRED COMPENSATION PROGRAM POLICY Employees are eligible to take distributions from the Plans upon separation of service from the District. The individual plan documents will provide the specific plan requirements and modes of distribution. B. Emergency Distributions An employee mayrequest an emergency distribution from hisærer 457 Plan account due to extraordinary and unforeseeable circumstances arising as a result of events beyond his/her control. Emergency distributions are not available under the 401 (a) Plan. Circumstances that will constitute an unforeseeable emergency will depend upon the facts of each case, but distributions will only be made in accordance with IRS regulations and the 457 Plan document. The District may use an investment provider or other third party to make a determination for an emergoncy distribution request. 8. Plan to PIan Transfers, Purchase of Service Credits and Rollovers The District's deferred compensation program allows plan to plan transfers, purchase of service credits, and rollovers in and out of the Plans. The individual plan documents will provide the specific plan requirements related to transfers of assets in or out of the Plans. 9. Amendment or Termination of Plan The District, at its sole discretion, may terminate one or both of the Plans at any time. Upon such termination, each participant in the affected plan will be deemed to have revoked hislher participation as of the date of such termination. The District may also amend the provisions of its Plans at any time, provided that no amendment or termination shall affect the rights of the participants or their beneficiaries to payment of benefits. APPROVED: Director of Human Resources JCFlLJeHSeptember Date General Manager JulÉL4eHSeptember Date B-4

27 Exhibit "c" RESOLUTION NO. 2OII- RESOLUTION OF THE BOARD OF DIRECTORS OF IRVINE RANCH WATER DISTRICT, RESCINDING RESOLUTION NO AND ESTABLISHING REVISED PERSONNEL POLICIES (FOR POLICY NOS. 38 and 39) WHEREAS, the Irvine Ranch'Water District (IRWD) is a California Water District formed pursuant to Division 13 of the Water Code of the State of California; and WHEREAS, Section of said Code provides that the Board of Directors shall employ and appoint such agents, officers and employees as may be required and prescribe their duties and fix their salaries; and WHEREAS, by adoption of Resolution No _ dated September 12, 20tI, the Board established revised Personnel Policies; and WHEREAS, the Board of Directors of kvine Ranch Water District deem it advisable and in the best interest of said District to revise Personnel Policies as follows: Policy No Safety Shoe and Prescription Safety Eyewear Policy: Policy has been revised to reflect that specific standards for safety shoes are set by the American Society for Testing and Materials (ASTM)F24I2-O5, andf24l3-05. Revisions also include walking shoes for Leak Detection employees. Policy No Deferred Compensation Plan: Policy has been revised to reflect current District practices. Policy has been revised to specify compensation that may be included for deferral and to designate the timing of deferral elections and/or changes based on the District's move to a bi-monthly pay system. NOW, THEREFORE, the Board of Directors of kvine Ranch Water District hereby resolve, determine and order as follows: entirety. Section 1. That Resolution No be and hereby is rescinded in its Section 2. That the Finance and Personnel Committee be authorized to approve exceptions to the District's Personnel Policies and procedures as long as those exceptions do not violate the general intent of the policy and/or procedure and are made in the best interest of the overall operations of the District. Any changes made by Committee are to be reported to the Board of Directors. Section 3. That the Personnel Policies for kvine Ranch'Water District be, and hereby are, approved and adopted as more specifically set forth in Exhibit "4" of this Resolution, attached hereto and by this reference made apart hereof. ADOPTED, SIGNED AND APPROVED this l2thday of September,2}ll. c-1

28 President, IRVINE RANCH IVATER DISTRICT and of the Board of Directo s thereof Secretary, IRVINE RANCH WATER DISTRICT and of the Board of Directors thereof APPROVED AS TO FORM; Bowie, Ameson, \Miles & Giannone Legal Counsel - IRWD By C-?

29 September 7,20II Prepared and Submitted by: Janet Wells I' ilr, Approved by: Paul C.Y/t FINANCE AND PERSONNEL COMMITTEE SUMMARY: 2012 MEDICAL INSURANCE COVERAGE RENEWAL The District currently utilizes the CaIPERS medical insurance program and receives premium rates each year in advance of open enrollment in October. For calendar year 2012, CaIPERS notified the District of premium increases for each of the specific plans from which IRWD employees can choose, with an overall annual premium increase of 4.1 percent. IRWD will be retaining a consultant team to review the District's overall retirement and health benefits package to maximize value to the employees and develop an equitable cost sharing method to minimize increasing exposure to rising costs in the future. The results of that study will not be developed in time to make adjustments to the 2012 medical insurance benefits. As such, staff recommends that the District make adjustments to the employee contribution rates for the CaIPERS medical plans in line with the increases announced for each individual plan. With the recommended adjustments to employee contributions and assuming similar plan enrollments as for 201I, the District's overall medical insurance costs will increase by 3.67o ove FY BACKGROUND Medical Insurance Premiums: The District has been notified that for the 2012 contract year, premiums for the District's plans will change as follows: 2012 Premiums 2011 Premiums Kaiser Permanente 7.287o increase 5.057o increase Blue Shield Access+ HMO 2.777o increase o increase Blue Shield Net Value HMO 2.72Vo increase 16.l77o increase PERS Care I5.I5%o increase I.52Vo increase PERS Choice L92Vo increase 9.197o increase -I.067o decrease 2.287o increase PERS Select Plan Design Changes: There are a few notable plan design changes which have been made by CaIPERS effective January I,2012. PERS Care and PERS Select Basic plans o A new value-based program is being introduced for three frequently used outpatient hospital procedures and maximum thresholds have been set for each whether the procedure is conducted at the site of care or at an ambulatory surgical center. These thresholds and areas ofconcern are: colonoscopy - $1,500, cataract surgery - $2,000 and arthroscopy - $6, Health Renewal.docx I

30 Finance and Personnel Committee: 2012 Medical Insurance Coverage Renewal September 7,2017 Page2 o An increase of $5 in the prescription drug co-pay at retail stores for brand medications and 90-day mail order prescriptions will be double the co-pay of 30-day retail prescriptions. There will be no change to the generic co-pay at retail stores or for mail orders. Kaiser Permanente Basic and Medicare plans o An increase of $5 in the prescription drug co-pay at retail for brand medications, and day supply mail order prescriptions will be double the co-pay of a 30-day retail prescription. There will be no change to the generic co-pay at retail stores or for mail orders. Blue Shield Basic and Medicare plans o An increase of $5 in the prescription drug co-pay at retail for brand medications, and 90- day mail order prescriptions will be double the co-pay of a 30-day retail prescription. There will be no change to the generic co-pay at retail stores or for mail orders. o The member will pay the difference between the cost of a brand medication and a generic equivalent, plus the generic co-pay when an FDA approved generic is available. CaIPERS Administrative Fees and Reserves: As of July 201 1, the CaIPERS administrative fee is 0.367o, which has decreased by a few basis points over the last four years. CaIPERS can also charge up to 4Vo for a contingency reserve fund but has not charged IRWD since There was no contingency reserve fee charged for the 2011 and to date, we have not been notified of any contingency reserve fees for the 2012 calendar year. Proposed Changes to Employee and Employer Contributions: Given the scope and timing of the benefits study which is expected to get underway as open enrollment is beginning for calendar year 2012 health benefits, staff recommends that only minor modifications be made to employee contributions at this time, in percentages consistent with the increases announced for each plan. Exhibit "A" shows the proposed employee and employer costs for this recommendation by plan and in the aggregate. Employee and employer contributions for 20ll and proposed contributions as shown in Exhibit "4" for 2012 are summarized in Table A below. Table A PERS Care PPO o s366t5732t$964 s453/ $906 / S 165 $42 t/ $843 / $1 I t0 $522t StO44t s943t51887t52452 PERS Choice PPO r.92% $35/$70/$105 $481/ $962 / $ 237 $36l$71 /$107 $490/$981 /$ 261 $526l $1052/ $1368 PERS Select PPO l.06vo $20l$40/$60 $431l$863/$1114 $20l$40/$60 $427 /$853 / $ 101 $447l $893/ $1 161 Blue Shield Access+ 2.77Vo $86/ Sl73 / $239 $481/ $962 / $ 237 $88/ $1 78 / $246 $496l $989 / $ 271 $s84/$1167/$r517 Blue Shield NetValue 2.72% $7 / $1s / $33 $481/ 5962 / S 237 s7/$1s/$33 $495/ $987 / $ 272 $502/ $1004/ $1305 Kaiser Permanente 7.287o s15/s28/$s0 $463/$928/$ 193 $1s /$30/ $54 $498 /$996 / $ 2't9 $5 l3l $1026 /$1333

31 Finance and Personnel Committee: 2012 Medical Insurance Coverage Renewal September 7,201I Page 3 FISCAL IMPACTS: Renewal of the District's current health insurance coverage with CaIPERS, as represented in Table A, will result in total projected expenses for FY 20lI-I2 of $3,524,280. The District's budget for this coverage for FY 20ll-12 is $3,601,900. Projected annual medical insurance premiums for FY 20ll-I2 will be approximately $77,000 (Z.IVo) under budget. ENVIRONMENTAL COMPLIANCE: This item is not a project as defined in the California Environmental Quality Act Code of Regulations, Title 14, Chapter 3, Section RECOMMENDATION: That the Committee recommend Board authorization for the continuance of the District's health care coverage with CaIPERS for calendar year 2012 and approve the recommended changes in employee contribution levels as recommended. LIST OF EXHIBITS: Exhibit "A" - Medical Premium Comparison with Increased Employee Contributions

32 Exhibit'A' lrvine Ranch Water D str ct CaIPERS Monthly Medical lnsurance Premiums Comparison and IRWD Payroll Deductions Increasô Employee Payroll Deductions Consistent with Carr er Porcentage lncreases EEtsÞ-gJ!9.tsI.lL Single Two Party Family s Medical $819.1 I $1, $ $0.00 $ $1, $ P em ilm lncreascs 2011 P/R Proposed 2012PlR 2012 Proposed Þâwr ll lnrêâcac s o/" fìa.hr f ^nc s o/" $ $ 'l /o 15.15Vo 15.15o/o $ $ $ $0.00 $ $ $ $0.00 $55.00 $ $ % 15.16Vo 15.1íYo PERS Choice PPO S ngle Two Party Fam ly $ $1, $ $1 22, $ $1, $ $124, $9.91 $19.82 $ Yo 1.92V. 1.92% $35.00 $70.00 $ $8, $36.00 $71.00 $ $9, $1.00 $1.00 $ % 1.43% 1.90% PERS Selôct PPO Single Two Party Family 1 0 E 4 $ $ $ $3, $ $ $ $3, ($4.80) ($e,60) ($12.48) -1.0ô% /o o $20.00 $40.00 $60.00 $ $20.00 $40.00 $60.00 $ $0.00 $0.00 $ % 0.00% 0.00% Blue Shield Access+ Single Two Party Family $ $1, $ $s9, $ $1, $ s61, $15.73 $31.46 $ % 2.77% 2.77% $86.00 $ s $9, $88.00 $ $ $9, $2.00 $5.00 $ % 2.89% 2.93% Single Two Party Family $ $ s $30, $ $1, $ $31,822,40 $13.31 $26.62 $ o/o 2.72o/o 2.72Yo $7.00 $15.00 $33.00 $ $7.00 $15.00 $33.00 $ $0.00 $0.00 $ % 0.00% 0.00% Kaiser HMO Single Two Party Family $ $ $ $79, $ $1, $ I $84, $34.81 $69.62 $ % 7.280/o 7.28Yo $14.00 $28.00 $50.00 $2, $15.00 $30.00 $54.00 $3, $1.00 $2.00 $ Yo 7.14o/o 8.00% PERS Choice LA Single Two Party Family $ $ $ $7, $50s.63 $1, $ $7, $9.48 $18.96 $ % 1.91Yo 1.91% $35.00 $70.00 $ $ $36.00 $71.00 $ $ $1.00 $1.00 $ Vo 1.43o/o 1.90Yo PERS Sêlect LA Single Two Party Family 0 0 s 0 $ $ s $0.00 $ $ $ $0.00 ($4.65) ($e.30) ($12.0e) k /o -1,07% $20.00 $40.00 $60.00 $0.00 $20.00 $40.00 $60.00 $0.00 $o.oo $0.00 $ % 0.00% 0.00% Single Two Party Family 2 2 L Ã $ $ s $4, $ , $4,392.1 I $13.79 $27.58 $ % 2.78% 2.77% $8ô.00 $ $ $ $88.00 $ s $ $2.00 $5.00 $ o/o 2.89Yo 2.93Yo Blue Shield I Single Two Party Family 0 0 L 'l $ $ $ ,1't1.71 $ $ s , $11.67 $23.34 $ % 2.73% 2.73% $7.00 $15.00 $33.00 $33.00 $7.00 $15.00 $34.00 $34.00 $0.00 $0.00 $ % 0.00% 3.03% Kaiser LA Singlê Two Party Fam ly 1 1 z 4 $ $ $ $3, $46s.63 $ $ $3, $31.63 $63.26 $ % 7.29Yo 7.29% $14.00 $28.00 $50.00 $ $15.00 $3o.oo $54.00 $ $1.00 $2.00 $ o/o 7.140k 8.00o/o No covereoe Single Two Party Family 1 7 g ta vlonthly Prem um -ess: Employee Conlributions,,let Monthly Premium $0.00 $31 2, , , lal qo2 EA $0.00 $0.00 $323, , ,889.48? Ãa^ 472 7^ O /" $0.00 $0.00 $0.00 Note: Costs for FY20l will consist of 6 months at current prem ums ($288,491/month) and 6 months at new FY premium levels ($298,889/month) for a total annual projected expense of $3,524,280. Est mated premiums of $3,524,280 âre $77,620 (2-1 5%) under the budgeted amount of $3,601,900. A-1

33 Exhibit "A' lrvine Ranch Water District CaIPERS Monthly Medical lnsurance Premiums Comparison and IRWD Payroll Deductions Employee Payroll Deductions lncreased Consistent with Percentage lncrease for Each Carrier za12 Plan Providers Premium Emplolæe Contribution Employer Contribution Total Premium Channe Sinole T\ ro Pârtv Familv Sinqle Two Partv Familv Sinole T\Âro Pârtv Familv PERS Care PPO /, s421.o(. $ $ ( s522.2r s ' s s943.2 $1,886.5' PERS Choice PPO $36.0C $71.00 $ 107,0( s490.ls s981.3r s ç $526.1 $ r $'t.368.0s PERS Select PPO 1.060/, s20.0c $40,00 s60.0( s426.6f s853 3 $ ? $446.6 s893.3( s1.16'1"37 Blue Shield Access+ 2.77o/. s88.0c s't78.00 s246.0t s495.6f $989.2( $1.2713e $583.6C s (. s1.517"36 Blue Shield NetValue 2.720/, s7-0c s15.00 $33.0( $494.9Í $988.8 s $501.9: $l.003.8f $1, Kaiser HMO 7.280/, $1s.0c $30.00 $54.0( s497.7( s995.5i s s512.7ê $1,025.5' $ PERS Choice LA 1.910/< $36.0C s71.00 s107.0( s469,6: s940_2 $1, $ $ ( s PERS Select LA -1.O7o/. s20.0c s40.00 s60.0t s409.2t $ $1.05s.97 s s858.4/ s1.11s.97 Blue Shield Access + LA 2.770/, s88.0c s $246.0( $ $ i s s1.o21.42 ß1.327.A7 Blue Shield Net Value LA 2.730/, s7.oc $15.00 $34.0( $432.2t $863.5( $ s s878.5( $1, Kaiser LA 7 290/, $15.0C $30.00 s54.0( s450.6! s901.2 sl.l56.6r $465.6: $93r.2( $r I NJ

34 September 7,2011, Prepared by: Tanja Fournier/Rob Jacobson Submitted by: Debby Cherney W Approved by: Paul Cool,l 4 L. FINANCE AND PERSONNEL COMMITTEE SUMMARY: MONTHLY INVESTMENT AND DEBT REVIEW The following items are submitted for the Committee's review and consideration: o The Investment Summary Report as of August26,2OI1, as outlined in Exhibit "A"; o The U.S. Treasury yield curve as of August26,2011, as outlined in Exhibit "B"; o The Summary of Variable Debt Rates as of Augu st 26, 20L I, as outlined in Exhibit "C"; and o The Summary of Fixed and Variable Rate Debt as of August 26,2011, as outlined in Exhibit "D". BACKGROUND: Investment Portfolio: Due to the timing of the Committee meeting, the rate of return is not complete at this time. Preliminary calculations indicate a return of 0.467o for August, which is a 0.037o decrease from the July rate of 0.497o. Including real estate investments, the projected weighted average rate of return for the District's investment portfolio for August is 1.86%o, which was a 0.0l%o increase from the July rate of 1.857o. Debt Portfolio: For the month, the District's weighted average all-in variable rate is 0.78Vo, which is a0.09vo increase from the July rate. Including the District's fixed rate Certificates of Participation at 3.827o and the 2010 Build America Bonds at 4.357o, the total average debt rate is currently 2.I4Vo, which is ao.06vo increase from the July average rate. During the month, a principal payment of $1.1 million was made on the Series 1991 bonds, which brings the total outsranding debt to s642s million. Interest Rate Swaps: Due to the timing of the Committee meeting, the swap report is not complete at this time. Staff will provide the swap report at the meeting. As of August 26,2011, the District had posted 58,416,629 of collateral with Citigroup, which represents a $3, 1 8 1,945 increase from the collateral posted in July. Additionally, as of August 26,2011, the District had posted collateral with Menill Lynch of $5,060,000. This was the first collateral call by Menill Lynch since November, 2010 and brings the total collateral deposit for the District to $ 1 3,476,629. The collateral earns the Fed Funds Effective Rate, which is currently 0.08Vo. F&P-Inv-Debt-9-7- I l.docx I

35 Finance and Personnel Committee: Monthly Investment and Debt Review September 7,2011 Page2 FISCAL IMPACTS: Fiscal impacts are included in the above narrative and in the attached exhibits. ENVIRONMENTAL COMPLIANCE: This item is not a project as defined in the California Environmental Quality Act Code of Regulations, Title 14, Chapter 3, Section RECOMMENDATION: Receive and file. LIST OF EXHIBITS: Exhibit "A" - Investment Summary Report as of August26,20Il Exhibit "B') - Yield Curve as of August26,20ll Exhibit "C" - Summary of Variable Debt Rates as of August26,2OIl Exhibit "D" - Summary of Fixed and Variable Rate Debt as of August 26,2011

36 IRVINE RANCH WATER DISTRICT INVESTMENT SUMMARY REPORT 08ßl/11 Exhibit "4" 08ß1t11 08/01/11 06D8t11 08/01/11 08t07t11 08/01n1 0u07t\1 08/01n1 08t19t11 08/01n1 08ßl/11 08ß1/ t11 08t31t1,1 08t3U1,1 o9t30^t 09t30nt 09106lrr 09t06nt 09/1 8/l l LA1F LAIF-JPA I/'IF-2OO9A LAIF-2OO9B T.AIFBABS Sta& ofcalifomia Tsy. Staæ ofcalifomia Tsy. St le of C.lifomia Tsy. Stale of Califomia Tsy. Stáe of Califomia Tsy. $38,800,000 50,000, , ,2',79 132,084,',? % 0380% 0.380% 0380% 03809o $38,800, $50,000, g683,n8.64 $683, $132,OU,787.t6 $38,800, $50,000, $683,2't8.64 $683,2' $132,084;78'/.1,6 38,861,16'7.M 50,078, , ,3s ,293, t,167.U '18, , ,07' ,22r.70 08ßl/11 08/01/11 o8t3u11 08/01/11 B of A Tsy. R$efles Balk of America 1,401,, ú9% 1,,401,, ,401, ,401, t2U10 11n4trc 01nU11 o2t10t1t 04ß4^r 05l23nl 04n5^l ßn9^l o6n1ltt o6n9^t 05D3tll 05n7ftl 06n7t1l 0'7^4t11 08n?/11 o8n9n1 llnvtl t0t26n2,:,:,qglg6'ítr.t Olt 1U'13 02n842 02/08n3 03n n4t13 04/Lu13 04r25t12 04t25t13 11f23t11 05D3t13 06n1tz 09/27t13 04/29114 ttnytl 05D3t14 n8n1 05nar4 o6n1n2 06u^4 07t1,1t12 0'1tl ^4 08n2t12 08t22/14 08n8n2 08t28tr4 Aa./AAA/l.lR AaalAAAe/NR AaalAAANR NA,/AAA9/NR AaalAAA.lR NA./AAA/I\ R Aaae./AAAe/NR Aâ,AAA/NR AaalAA+NR AaalAATNR FNMA-Note FFCB -Note FFCB -NotÊ FHLMC - NoIÊ FHLMC - Note FHLMC - Note FHLB - Noie FHLMC. NoIr FHLB -Notg FNMA-Noþ FHLMC - Note FHLMC. Note FFCB - Note FNMA - Note FHLB - NoG FNMA - Note Fed Natl Mortgage Assæ Fed F m Crcdit Bmk Fed Credit Ba k Fed Home Loe Mofgagc Ba k F d Home Loæ Mofgage Ba k Fed Home Lôæ Mortgage Ba k Fed Home Loæ Ba k Fed Home Loæ Mortgage Ba k Fed Home Loæ Ba k Fed Nad Mortgage Assæ Fed Home Loæ Mortgage Ba k Fed Home Loa Mortgage Ba k Fed Fm Credit BÐk Fed Natl Mortgagc Assæ Fed Hore I ü BaDk Fed Nafl Mofgage Assæ 5,000, % 5,000, % 5,000, % 5,000, % 5,000, % 5,000,000 1;720% 5,000, % ívû,uû 0.625% 5,000, % 5,000, ,10% 5,000, % 5,000,000 t.250% 10,000, % 5,000,000 1.t25% 5,000, ,000, % 0.841% 0.515Ea 0.590% 0.826% 0.90t% 0.997% t.1m% a 0.517% 0.750% 0.750% 1.040% 0.654% 0.7û% 0;700% r.122% 1;708% ',70% r.250% 1.250% 1.050% r.050% a 0.962% 0.660Eo 0.680% 0.650% 0.650% 5,012, ,997, ,992,5m.æ 4,985, ,000, ,112, ,000, ,955, ,000, ,998, ,999, ,000, ,000, ,000, ,998, ,000, ,û1, ,998, ,994, ,989, ,000, ,096, s,000, ,964, ,000, ,998, ,999,s ,000, , ,m7, ,998, ,000, ,010, ,000, ,008, ,010, , ,112, ,015, ,004, ,011, ,006, ,009, ,009, ,032, ,024, , , ,20',7.14 t,70' , , , , , ,s , , , , , (4,963.69) (1,100.00) 09t26t08 08n4^t o8t30/1r 10/09/08 08n5n1 08ßu11 08/01/09 08n4n1 08t30t11 o'7t20r10 08n5n1 08ßy11 08/L6/1,0 08D4t11 08ß0t11 06/0U11 08n4n1, 08t30t11 11/18n0 08n5n1 08ß t2Ur0 08D4t11 08ßU11 05t06trt 08t24t11 08ß0t11 o4l2'7ltt 08D4t11 08ß0t11 SUB.TOTAL 08t31/Ll 09/01/ll I fþ&iti:i::,, 08/31/11 I 0q6!íl!1,' 09lo1/11 08t31,tÍ, 08ß1n1 09t0U11 08ß1/11 08ßu11 08/3 l/1 1 (4' (4) (Ð (4' (4) (4) (4) (4) (4) (4) AaalAAA/l,lR Aa3IAA JWD Aa3IANR AaalAAANR Aa2IANAA+ AaZAA-lì.rR Aa2lAAAe/NR VRDO VRDO VRDO VRDO YRDO \RDO VRDO VRDO VRDO VRDO Chiûo Bõitr Fiû Ca Walq Sedes C Rucho Califomia lvtd Met opolitan Wder Særmedto WTR Oræge Cúy lrytr LA Wæte \ryü E6tem Mu Wtr Dist CA West Bæiû \ y't East Bay MUD 1 1,280,000 2,000,000 6,700,000 7,500,000 10,000,000 5,000,000 4,900,000 7,900,000 9,200,000 9,600,000 --B8rJ3r,60l 0.160Ea 2.t00% 0.2N% 0.1't0% 0.1,60% 0.1'10% 0.160% 0.1'707a 0.170% 0.190% 11,280, ,280, ,000, ,000, ,700, ,700, ,500, ,500, ,000, ,000, ,000, ,900, ,900, ,900, ,900, ,200, , ,600, ,280, ,000, ,700, ,500, ,000, ,000, ,900, ,900, ,200, $382,785, $382,782,2û.24 $383,334, $552,27"1.69 RFJTRICTED CASH lswap Coüateral Deposits) 08/01/ll osnult ognurt 08n9111, 08/08n1 09/01n1 Collateral Deposit Collateral Deposit Citi-croup Meûill L]îch $8,416,629 $3,800,000 o.096% $8,416, $8, $ $ ,416, (m.00 SUB-TOTAI $12p16,629_ $ $" s a.96 TOTAL INVESTMENTS $394,949,234 $39s,002, $394,998, $395,551,10ó.90 Petty C6h BaDk Bal. (uæ.) Bæk of America? rmm f9ililîi49þlþf) $385,887, is æ of the Eost receût quafer-eûd æ rcported by LAIF Smúty ßdket valuos æ detemiéed 6iûg Ba k of New York ("TBding hices"), Bloomberg æd/or broke dealer pricitrg. Gaiû 0oss) calculated agai st ca y value using the tadiûg value p ovided by Ba k ofnew Yoruo Brokeß (3) Real estate rate of rctum is bæed on most rænt quafer eûd rctum (:9.N.0_9al.N9tice Vdiable Rate Debt Net Oulstandiûg Veiable Rate Debr (Iæss $130 úillion 6xed-pÐ r swaps) I vcsheût Bâl2næ: hvesheût to Vdiable Raie Debt Ratio: Porfolio - AveÊgo Numbe of Days To Pordolio Pordolio(3) Retm IDvcshetrt Sumary RepoÎt is ir confomity with the 201I l vesheût Policy provides sufñcieút liquidity the next six moilhs 6tiBaled expeûditurcs. Augut 0.464o Juty 0.49% Change a 10.6% 1.K% 10.6% 7.85% A-1

37 IRVINE RANCH WATER DISTRICT SUMMARY OFMATT]RITIES 08/26/1r PORTFOLIO $396,644,539 8/1 1 9llr r0lll tutl T2ITl Ut2 2/t2 3n2 4n2 5n2 6l12 7ltz $316,644,539 $5,000, Vo 5227,95I,344 l.26vo 5,000,000 74,080,000 t,t36, ,4',16,629 SUB.TOTAL s321,644,539 8l.O9Vo 8227,951,344 5,000, t t30t2012 to I 1, t201,2 - Lzt 3 I / 2oÍ2 $5,000,000 l.26vo 5,000,000 ULl20t3-3t3U2013 $15,000, o nt201,3-6t30t2013 $1s,000, Vo 15,000,000 7nt201,3-9/30t2013 $5,000,000 l.26vo 5.000,000 t0 I I t201,3-12t 3L / nt20t4-6t30t20r4 $25,000, o 25,000,000 7nt20t4-9/30t2014 $10,000, Vo 10,000,000 TOTALS s396,644,539 IOO.OOVI 9227,95I,344 80,000,000 74, t o OFPORTFOLIO 5'7.477o o 18.68Vo O.29Vo 3.40Va * Return of posted collateral is dependant on interest rates. ^-2

38 SWEEP Account o.3% Collateral Deposít il,fr$rffüil*$ 6-12 Months o.o% Months 2.s% Months 7.6Yo Months to.l% I r 1 I i i,... A-3

39 <HELP> for explanation" DATE RANGE + g/?6/t! - -s- B/ol/!1 Exhibit "8" HIS-I-OFRTCAL YT ELD CI.JR"VE B Bl26/t l,try RANGE g l ry EquitYC f-s PAGE ]. TF 2 I E L D F R E A D Z r0 30 Êustrqlio 51 Z 9?ZZ 8600 Brqzil Europe 44 eo? Genmsng ? Hons Kong 852? Jopon B Sinsopore 65 62lZ 1000 U.S. 1 Z1Z Copsright 2011 Bloombers Finonce L.P. SN PDT Gl'lT-7,00 HI4?-1275-t 26-Êug ' 53' NONTH 6 }4ONTH 1 YEAR 2 YEAR 3 YEAR 5 YEAR 7 YEAR 10 YEAR 30 YEAR Bl0t/lt a "a7t a.ß7 0"193 a t L "080 Bl26/ " L5 0" a.937 1" a763 -a L L " " 5s65-0 " 5404

40 IRVINE RANCH WATER DISTRICT SUMMARY OF VARIABLE RATE DEBT Aug-1 1 Exhibit "C', 08/01/1 1 08/ /03/1 1 08/ /05/1 1 08/06/1 1 08/07/ /11 08/09/ /11 08/11/11 oah211'l 081't3t11 o8/14111 o /17t11 08/1 8/1 1 oah9l11 08/20/ /11 08/22/11 08/23/11 08/24/'t'l 08/ / /11 08/ /11 08/30i1 1 08/31111 GOLDMAN SACHS WEEKLY WEEKLY WEEKLY A 2011 A-1 6,400,000 75,000,000 60,545,000 B of A US BANK 0.o4% o.o4% 0.11o/o 0.'l1o/" 0.11o/o O.11o/o 0.11% 0.11% 0.11% O.11o/o o.11% 0.11% 0.11o/o o.11% 0.11o/" 0.'t1% O.13o/o o.13% 0.13o/o 0.13% O.13o/o 0.13"/o O.13"/" 0.16% O.16o/" 0.16% O.16o/o 0.16o/o o.16% 0.16o/" 0.03% 0.03% 0.13o/o o.13% O.13o/o 0.13% 0.13o/" 0.'l3o/o 4.13o/o o.12% 0.120/" O.12o/o 0.12y" 0.12o/" 0.12o/o O.12o/o 0.10% 0.10o/o o.10"/" O.1Qo/o O.10o/o 0.10% O.10o/o o.11% 0.1'lo/o 0.110/" O.11o/o o.11% 0.11% o.110/" ai2% O.12o/o O.12o/o 0.22/" 0.22% O.22o/o 0.22o/o 0.22% 0.22% 0.22o/o o.22% 0.22% 0.22o/o o.22% 0.22% 0.220/o o.22% o.24% 0.24o/o o.24% O.24o/o 0.24o/o o.24% 0.24o/o O.25o/" 0.25% 0.250/" 0.25o/o O.25o/o 0.25yo o.25"/" 0.12o/o o.12% 022% 0.22% 0.220/" 0.22o/o 0.22% 0.22% 4.22o/" o.22% 0.22% 0.220/" 0.22o/o 0.22o/o 0.22% O.22o/o O.24o/o o.24% O.24o/" O.24o/o O.24o/o O.24o/" Q.24o/o O.25o/o o.25% 0.25% 025% O.25o/o 0.25o/o MERRILL LYNCH WEEKLY A 7,300,000 37,500,000 57,600,000 BofA BofA Sumitomo 0.22"/o 0.17"/" 0.15o/o 0.09% 0.08% 0.08% 0.08o/o 0.10% 0.140/" 0.14o/o 0.17% 0.17% 0.17o/o 0.17% 0"20o/" 0.19% o.18% o.17% 0.17o/o o.17"/" o.17% O.17o/o 0.17% 0.16% o.17% 0.17% 0.170/" 0.17o/o /" o.22% O.17o/o o.15% 0.09% 0.08% 0.08o/" O.08o/o 0.'t0% 0.14% 0.14% O,17o/o O.17"/" 0.17"/" O.17o/o O.2Oo/" 0.19o/o 0.18% O.17o/o 0.17o/o o.17% O.17o/o Q.17o/o o.17% 0.16% o.17% 0.17% 0.17y" 0.17% 0.15o/o O.077o 0.o7% o.12% 0.12% 0.12% o.120/" 0.12o/o 0.12% O.12o/" O.17o/o 0.17Yo 0.17"/" O.17o/o O.17o/o o.17% 0.17o/o O,18o/o 0.18% O.18"/" O.18o/o 0.18o/o o.18% Q.18o/o O.19o/o o.19% 0.19% 0.19% 0.19o/o 0.19% UI IIUHUUP WEEKLY ,700,000 21,700,000 Helaba (GF) Sumitomo \ ltêdñàcrlâv 0.24"/o o.17% O.1Oo/o 0.08% 0.O7o/o O.O7o/o 0.07o/" 0.06% 0.07o/o 0.09% 0.11% 0.12o/o O.12o/o 0.12% 0.12/" Q.12o/o 0.12% o.120/" O,12o/o O.'l2o/o 0.12"/o 0.12/" O.12o/o 0.12% 0.11o/o 0.11o/o 0.'l1o/o o.110/" 0. l5% 0. l5% 0. l5o/" 0. l2o/o 0. l2o/o 0. l2o/" 0. l2o/" 0. l2o/o 0. l2o/o 0. t2% 0. l4o/o 0. I 4o/o 0. I 4o/o 0. I 4o/" 0. I 4o/o 0. I 4o/o 0. 14"/" 0. l6o/o 0. t6% 0. l6o/" 0. l6o/o 0. l6o/" 0. l6yo 0. l6o/" 0. l7o/o 0. l7o/o 0. 7o/o 0. 7Yo 0. 7o/" 0. 7o/o o. 7"/" 0.11% 0. 5%" 0.08% 0.o80/o O.21"/o 0.65% O,40o/o O.87'/o 0.20o/o o.10% 0.08% 0.08% 0.08% 0.08% 0.06% o.o7% 0.10o/o O.13o/o 0.'l5o/o 0.15% 0.15o/o 0.15% 0.15o/" O.14o/o 0.14o/" 0.14o/o o.14% 0.14o/" O.14o/o 0.14% O.14o/o 0.14% 0.14"/o 0.14% Q.14o/o O.14o/o Percent of Par Weighted All-ln -TXlJfläl't tnteresr Rare outstandins Averase Rate faily ""0" 32.24o/o 124,500, % ffeeklv Base Rate Average o.14% 0.17o/o 67.76o/o O.73o/" f-otal % $ 386,115,000 O]B% lo State Guarantee

41 IRVINE RANCH WATER DISTRICT SUMMARY OF FIXED & VARIABLE RATE DEBT atlnoß Dq ly Exhibit "D" Wækly Remin ng Letter of CÈd t I-ETTER OFCREOI INFORMAT,ION Ro mbuement UCElp. LOCSTå d S 163,530, ,115,000 SUB-TOTAL VARIABLE RATE DEBT i4!29r99 l9!?é19, ry9!1- (wr. Avg) $260,1,15,000 t256,400,000 SUB.IOTAL FIXED RATE DEBT TOTAL- FIXED & VARIABLRE RATE DEBT " "'nääiilt'äñ-iìgmts cg 26,400,000 Goldmãn 141,945,000 Morgan Stãnley 40,370,000 BAML 102,400,000 79,009,90q 385,115,000 JP Morsan 7% 37Vo 'tovo 27Vo 1gqo GO: COPS: Total GO VS COP'S $561,1 15,000 $91,,10,,q,qgq 642,515,000 ATYo 13Vo HELABA SUMITOMO BANK OF AMERICA US BANK vrdsum.xlsx 4t26t2011 LOC ElånkÊ 4,700,000 73,300, ,200,000 79,999,S.,0,0 285,200,000 Breskdown Betwsen Da ly, Wækly & F xed Rate Mode Da ly lssues Weekly lssues ITN lssues Sub-Total F xed Rale lssues Sub-Total - Fixed TOTAL DEBT FIXED & VAR. $124,500, /o $160,700, /o $.1,99,9,]_9,999,'160/o 386,115,000 $256,400,000 4oo/o 256, 100'000 6,a2,515,000

42 September 7,2011 Prepared by: Tanja Fournier/Rob Jacobson Submitted by: Debby Cherney î(/ Approvedby: paul Cook/6rl. FINANCE AND PERSONNEL COMMITTEE INTEREST RATE SWAP NOVATION FROM CITIGROUP TO WELLS FARGO SUMMARY: During the recent letter of credit substitution process, Citigroup requested the District consider novating (substituting) the three interest rate swaps with Citibank, N.A. (Citi) as counterparty, and replace them with Wells Fargo Bank, N.A. as counterparty. This novation would result in a higher rated counterparty, an increase in the collateral threshold from $15 million to $50 million (at the District's current ratings), with no legal or administrative cost to the District. Staff recommends that the Board approve the novation of counterparties. BACKGROUND: The District cunently has three interest rate swaps with Citi as counterparty. During the recent letter of credit substitution, Citi requested that the District consider novating Citi with Wells Fargo on the three swap transactions. Citi is interested in novating its swap positions as part of a corporate initiative to strategically sell assets that reside in the Citi Holdings unit of Citigroup. This novation would result in the District entering into a new International Swaps and Derivatives Association (ISDA) agreement with Wells Fargo with terms that are consistent with the existing Citi ISDA agreement. Wells Fargo is a higher rated counterparty than Citibank (Aa2/ANAA- vs. A1/A+/A+), and Wells Fargo has agreed to increase the cunent collateral threshold requirement from $15 million to $50 million. The District will not be responsible for any legal expense or Financial Advisor expense (should one be required by Citi or Wells), as Citi and/or Wells will pay and expenses. Staff has attached an overview of the proposed swap transaction as Exhibit "A". FISCAL IMPACTS: Citigroup is currently holding District collateral in the amount of $8,416,629, which will be returned to the District when the agreement with'wells Fargo is executed. ENVIRONMENTAL COMPLIANCE: This item is not a project as defined in the California Environmental Quality Act Code of Regulations, Title 14, Chapter 3, Section RECOMMENDATION: That the Committee recommend the Board approve novating the curent Citibank, N.A. interest rate swaps to Wells Fargo Bank, N.A. LIST OF EXHIBITS: Exhibit '6A" - Swap Novation Opportunity Proposal F&P-Swap Novation from Citi to Wells Fargo 9-7- I I.docx 10

43 Exhibit "A" ffi Swap Novation Opportunity August 31,2011 Sirictl r Frìvate a:ti Confìoeni al A-1 cíiì

44 Overview of Swap Program o IRWD has $80 million of floating-to-fixed swaps outstanding with Citi with an average fixed payer rate of 5.917o/o and remaining average life of 11.4 years o Mark-to-market of the fixed payer swap program is currently against IRWD by approximately $23.4 million OUTSTANDING SWAPS W TH CITI 'f. Fixed PayerSwap 03/08/ t M LIBOR 5.687Yo Citibank 2. Fixed PayerSwap /04/06 06t041't o M LIBOR 6.200% Citibank 3. Fixed PayerSwap o6t17t04 06/17106 o6t M LIBOR 6.140o/o C t bank Total ,917olo ^-2

45 Swap Novation Mechanics (lllustrative Example) The proposed terms below are preliminary based on discussions with potential new counterparties and are subject to market conditions, final credit approval and documentation. o IRWD may be able to novate the swaps to another counterparty who will assume Citibank's role IRWD will enter into standard ISDA documents with New Counterparty (terms to be negotiated) New Counterparty assumes Citi's role and makes floating payments to IRWD in exchange for fixed payments. A payment is exchanged between New Counterparty and Citi in order to compensate New Counterparty for assuming the trade o Mark-to-market of existing swap remains the same Citibank 100% LtBoR 100% LtBoR Subiect to mãrket cond tions, final credit approval and documentation of New Counterparty. For llustration purposes only. Actual results will depend on future market conditions and may differ. A-3 cíiì

46 Overview of Swap Novation Discussion The proposed terms below are preliminary based on discussions with potential new counterparties and are subject to market conditions, final credit approval and documentation. EXISTING COUNTERPARTY NEW COUNTERPARTY2 Ratings (M/S/F): Giübanlç N.À A1lA+/A+ Ratings (M/S/F): Well Fargo Banlc N.A" Aa2IAAIAA- Notional Amount: 80,000,000 Notional Amount: 80,000,000 Current MTM Valuel: (23,416,629) Pro Forma MTM Valuel: (23,416,629) Current Collateral Thres hold: 15,000,000 New Collateral Threshold: 50,000,000 Additional Termination Ercnt: Below A3 or A- or A- Additional Termination Event: Below A3 or A- or A- CURRENT COLLATERAL THRESHOLDS PROPOSED COLLATERAL THRESHOLDS Rating Collabral Thresñold Rating Colla$ral Thredpld êvaa 15,000,000 AAA 50,000,000 AA+ 15,000,000 A/q+ 50,000,000 AA AA- A+ A A- 15,000,000 15,000,000 10,000,000 5,000,000 0 AA AA- A+ A A- 30,000,000 30,000,000 10,000,000 5,000,000 0 'l\ ark{o-mârkeivaluesareestimetesasoí PleasereíertcvaluationdÌscìarmerforfurtherinformation 2 SuÐject to marker. ccnditions, flnai creciii approval and documentatìon. For illustratron purposes only. Actua results will depeno on future market condiirons and ì"nay differ cm A-4

47 Potential Required Documentation The proposed swap novation may potentially entail the following documentation. o Novation Confirmation (between IRWD, Citibank, and New Counterparty) o New lsda/schedule/credit Support Annex/Confirmations (between IRWD and New Counterparty) "Know Your Custome/' new account forms (New Counterparty may require) o Authorizing Resolution o Enforceability Opinions o Other documentation as may be required 4 For iliustratio cij:poses oli\/; sublec" "c courser - \4eu cítì A-5

48 Valuation Disclaimer All valuations are as of the valuation date indicated and represent an estimated mid-market for each transaction listed herein. Mid-market valuations may be derived from broker quotations or from proprietary models that take into consideration estimates aþout relevant present and future market conditions as well as the size and liquidity of the position and any related actual or potential hedging transactions. Although the information is derived from sources believed to be reliable, we have not assumed any responsibility to independently verify. Valuations based upon other models or assumptions or calculated as of another date and time may yield significantly different results. Any of the valuations may be affected by our transactions either in similar or the underlying securities or other instrument(s) and/or be based on our own quotations. All valuations are provided for information purposes only as an accommodation without charge and are intended solely for your use. Unless otherwise agreed in writing, Citigroup is under no obligation to agree with you to the early termination or assignment of any transaction. Any early termination or assignment of any transaction may take into consideration any market inputs Citigroup deems relevant to this transaction. Accordingly, in any such case, it is likely that the We expressly disclaim any responsibility for (i) the accuracy of the models, market data input into such models or estimates used in deriving the valuations, (ii) any errors or omissions in computing or disseminating the valuations and (iii) any uses to which the valuations are put. Due to the varying size of bid-offer spreads, the mid-market valuation may be signifìcantly higher (or lower) than the levels at which new transactions could be effected. These valuations may take into account such factors as the length of time that has elapsed since the transaction was entered into, potential reduction to us of market and other risks that may be realizable through an unwind, and other product pricing considerations relevant to the specific transaction which may lead us to forego the full profit potentially realizable if the transaction ran full term. Accordingly, these transactions may be valued at more attractive levels to you than we would quote to others or than would be available from other dealers. Further, these valuations do not represent (i) the actual prices at which new transactions could be entered into, (ii) the actual prices at which the existing transaction could be liquidated or unwound, or (iii) an estimate of an amount that would be payable following the early termination date of any transaction- These valuations may differ from the prices we use to value our positions on our books and records or for purposes of collateral calls. A-6 cilì

49 Disclaimer IRS Circular 230 Disclosure: Citigroup lnc. and its atriliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or wrillen to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax ænalties and (ii) may have been wrillen in connection with the "promotion or marketing" of any transaction contemplated hereby ('Transaction'). Accordingly, you should seek advice based on your particular circumstances from an i n de pen dent tax advi sor. commitment to lend, syndicate a financing, underwrite or purchase securities, or commit capital nor does it obligate us to enter into such a commitment, nor are we acting as a agency relationship between us in respect of this Transaction. You should consider carefully whether you would like to engage an independent advisor to represent or otherwise advise you in connection with this Transaction, if you have not already done so. to assume these risks) as well as the legal, tax and accounting characterizations and consequences of any such Transaction. ln this regard, by accepting this presentation, you acknowledge that (a) we are not n the business of providing (and you are not relying on us for) legal, tax or accounting advice, (b) there may be legal, tax or accounting risks you and we hereby agree that from the commencement of discussions w th respect to any Transaction, and notwithstanding any other provision in this presentation, we hereby confirm that no participant in any Transaction shall be limited from disclosing the U.S. tax treatment or U.S. tax structure of such Transaction. street address, and taxpayer ld number. We may also request corporãte format on documents, or other forms of identification, to verify information provided. Any prices or levels contained herein are preliminary and indicative only and do not represent bids or offers. These indications are provided solely for your information and our affilìates may make a market in these instruments for our customers and for our own account. Accordingly, we may have a posit on n any such instrument at any tìme. research personnel to specifically prescribed circumstances. and registered throughout the world. of stakeholders on the issue of climate change to help advance understand ng and solutions. Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those r sks. eff c ency, renewable energy & mit gat on cm A-7