Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services Water District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District,

Monterey, Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

AGENDA BUDGET/PERSONNEL COMMITTEE (BPC)

Rudy Fischer, Chair

Dennis Allion, Gloria De La Rosa, Peter Le [Alternate – Linda Grier]

DATE: Friday, May 8, 2015

TIME: 11:00 a.m.

LOCATION: Admin Conference Room 5 Harris Court, Building D

1. CALL TO ORDER

2. ROLL CALL

3. PUBLIC COMMENTS Anyone wishing to address the Committee on matters not appearing on the Agenda may do so now. Comments on any other matter listed on the Agenda are welcome at the time the matter is being considered by the Committee.

4. APPROVE APRIL 10, 2015 BPC MINUTES

5. UPDATE ON FY 15/16 BUDGET

6. CONSIDER AWARD OF CONSTRUCTION CONTRACT FOR THE GRIT PIPING REPLACEMENT PROJECT

7. CONSIDER APPROVAL OF RESOLUTION FOR EXCEPTION TO THE 180-DAY WAIT PERIOD FOR HIRING A RETIREE (ISRAEL)

8. CONSIDER APPROVAL OF EMPLOYEE CERTIFICATION AND CAREER INCENTIVE PROGRAMS

9. CONSIDER APPROVAL OF CONTRACT FOR AUDITING SERVICES FOR FY 14/15

10. STAFF MEMBER COMMENTS

11. COMMITTEE MEMBER COMMENTS Committee Members may ask a question for clarification, make a brief announcement or make a brief comment or report on his or her own activities within the jurisdiction of the committee. No discussion or action is appropriate other than referral to staff for consideration or setting a matter as a future agenda item.

12. ADJOURNMENT

NOTE EARLIER

START TIME

* * * * * * * * *

This Committee Meeting Notice and Agenda was hereby posted at the MRWPCA Administrative offices, 5 Harris Court, Building D, Monterey, California 93940.

POSTED: Tuesday, May 5, 2015 BY: /s/ Chayito Ibarra

Executive Assistant/Clerk to the Board

Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services Water District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey,

Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

C O M M I T T E E

M I N U T E S / R E P O R T

BUDGET/PERSONNEL COMMITTEE

Friday, April 10, 2015 12:31 pm to 2:06 pm

5 Harris Court, Building D

Monterey, California

1. CALL TO ORDER

2. ROLL CALL

3. PUBLIC COMMENTS

4. APPROVE MARCH 13, 2015 BPC MINUTES

5. APPROVE PROPOSED BPC MEETING DATES

6. UPDATE ON EMPLOYEE CERTIFICATION AND CAREER INCENTIVE PROGRAM

7. RECEIVE FY 14/15 MID-YEAR BUDGET REPORT AND PROVIDE UPDATE ON FY 15/16 BUDGET PROCESS

8. CONSIDER AWARD OF CONTRACT FOR GEOGRAPHIC INFORMATION SYSTEM (GIS) SUPPORT SERVICES

9. STAFF MEMBER COMMENTS

10. COMMITTEE MEMBER COMMENTS

11. RECESS TO CLOSED SESSION A. PUBLIC EMPLOYEE APPOINTMENT

PURSUANT TO GOVERNMENT CODE 54957

TITLE: GENERAL MANAGER 12. POSSIBLE ACTION ON CLOSED SESSION ITEMS

13. ADJOURNMENT

DRAFT

BUDGET/PERSONNEL COMMITTEE DRAFT April 10, 2015 Page 2 of 7

PRESENT: Budget/Personnel Committee

Rudy Fischer, Chair Dennis Allion Gloria De La Rosa Peter Le

ABSENT:

None

PRESENT: MRWPCA Staff:

Keith Israel Rob Wellington Paul A. Sciuto

General Manager Legal Counsel Director of O&M/Deputy GM

Tori Hannah Chief Financial Officer

Jennifer Gonzalez Engineering Supervisor

Cheryl Rogers Administrative Support Specialist

Chayito Ibarra Executive Assistant

OTHERS PRESENT: Pam Derby – CPS HR

3. PUBLIC COMMENTS At 12:33 pm, Chair Fischer called for Public Comments; none received.

4. APPROVE MARCH 13, 2015 BPC MINUTES

Chair Fischer stated that the March 13, 2015 draft BPC minutes were presented to the BPC for their approval.

ACTION TAKEN: On a motion by Mr. Allion, seconded by Ms. De La Rosa, the Budget/Personnel Committee unanimously approved the March 13, 2015 BPC Minutes. [Yes: Fischer, De La Rosa, Le, Allion] 5. APPROVE PROPOSED BPC MEETING DATES

Chair Fischer stated that the proposed BPC meeting dates for May 2015 through March 2015 were presented to the BPC for their approval.

ACTION TAKEN: On a motion by Mr. Le, seconded by Ms. De La Rosa, the Budget/Personnel Committee unanimously approved the BPC meeting dates for May 2015 through March 2016. [Yes: Fischer, De La Rosa, Le, Allion]

BUDGET/PERSONNEL COMMITTEE DRAFT April 10, 2015 Page 3 of 7 6. UPDATE ON EMPLOYEE CERTIFICATION AND CAREER INCENTIVE

PROGRAM Mr. Sciuto stated that the Agency agreed to revise the Certification and Career

Incentive Program as part of the employee MOU’s that were approved by the Board in June 2014.

He explained that Staff created a draft incentive plan which was reviewed by the employee groups. As a result of the feedback received from the employee groups, the draft incentive plan was split into the following two programs: Certification Incentive Program and Career Incentive Program. The Certification Incentive Program would include positions that require a certain level of certification and the Career Incentive Program would include those employees pursuing the educational track. Staff will be meeting with the employee groups to finalize the language in the program and staff’s goal is to bring this item to the BPC for approval at the May 8 meeting.

In response to Mr. Allion’s question, Mr. Sciuto responded that he is unsure if money was budgeted for this item for FY 14/15 but he would find out and notify the BPC. He stated that based on the incentives that are currently being proposed and existing staff educational level and certifications, staff estimates the cost to be in the $20K range.

Mr. Sciuto reminded the BPC that the deadline, per the MOU’s, for implementing this program was January 1, 2015. He stated that if the proposed programs are approved by the Board, the effective date will be retroactive to January 1, 2015 including any monetary payments.

Information only – no action is required.

7. RECEIVE FY 14/15 MID-YEAR BUDGET REPORT AND PROVIDE UPDATE

ON FY 15/16 BUDGET PROCESS Ms. Hannah provided the BPC with an overview of the Mid-Year Budget Report and an update on the FY 15/16 Budget Process. With regards to the FY 15/16 Budget Process, Ms. Hannah stated that staff is in the process of preparing a draft FY 15/16 budget. She noted that the budget will include a change in the current account structure to reflect more functional budgetary control and greater transparency. The draft FY 15/16 budget would be presented to the BPC at the May 8 meeting. Ms. Hannah, in providing the BPC with a FY 14/15 six month budget update, stated that overall the Agency budget was consistent with the adopted budget for the period from July 1 through December 31, 2014. She reviewed the “Revenues” and “Budget to Actual Expenditures & Encumbrances” charts that were provided to the BPC, which illustrated that with a mid-year target of 50%,

BUDGET/PERSONNEL COMMITTEE DRAFT April 10, 2015 Page 4 of 7

revenues and expenditures were at 51.8% and 50.6%, of their respective goals. With regards to revenues, Ms. Hannah stated that revenues were trending greater than the adopted budget primarily due to increased industrial user fees and unbudgeted interruptible rate fees. She noted that while industrial user fees were within 73% of their budgeted amount at mid-year, the variance is due largely to the projected closure of one industrial facility at the time the budget was adopted, followed by an unforeseen opening of an alternate facility. The revenues chart that was provided to the BPC showed that interruptible rate fees are projected to generate $435,000 in this fiscal year. She noted that while the interruptible rate fees were not included in the FY 2014/15 budget, they were responsible for over $233,000 in additional mid-year revenues. Discussion from the BPC continued regarding the interruptible rate and whether the Agency recovers all of the incremental costs. Mr. Sciuto stated that all of the big cost items, such as power and chemicals are included in the rate. Some minor hard to define costs may be not be included. Mr. Israel added that these are still interim interruptible rates and the Agency plans on setting a permanent rate and will ensure it covers the Agency’s overhead. Ms. Hannah, in reviewing the Expenditures Chart, stated that it is projected that the Agency’s operating expenditures will be less than the adopted budget. Electricity costs for the Regional Treatment Plant (RTP) and pump station operations are anticipated to exceed their line item budgets by approximately $200,000. She explained that the increases are primarily due to the result of downtime associated with the Cogen plant, rising utility costs, and increased operations related to the interruptible rate revenues. She anticipates that salary savings due to position transitions and labor charges transferred to capital improvement projects will offset increased electricity costs. With regards to the Agency’s investments, Ms. Hannah stated that each year the Agency reviews investments to determine best yields and maturities. She went over some of the investment highlights and stated that as of December 31, 2014, the cash and investment portfolio was comprised of $9.2 million. Of this amount, $3.5M is accessible within 24 hours; and $5.7M is subject to two day to six month constraints. The Agency’s funds represent $8.3M or 90% of the portfolio, while Reclamation Funds represent approximately $912,000 or 10% of the invested funds. Ms. Hannah stated that the investment portfolio is in compliance with all provisions of the adopted investment policy and with applicable provisions of state statutes. With regards to indirect costs, Ms. Hannah stated that she will be meeting with staff from MCWRA today to review different models. One model they will be reviewing is one used by the City of Capitola which charges indirect costs as

BUDGET/PERSONNEL COMMITTEE DRAFT April 10, 2015 Page 5 of 7

fully-burdened hourly rate, while another method applies administrative cost centers to functional departments based on different factors, such as the number of personnel as the basis for allocating HR services; or the number of invoices or the percentage of budget for allocating Finance Department services. Mr. Allion stated that when you break up budgets like this and hold individual managers responsible he gets concerned with holding them accountable for costs they have no control over. Mr. Allion provided some suggested revisions to some of the charts presented. Ms. Hannah stated she would make the revisions. Ms. De La Rosa thanked Ms. Hannah for the report and stated that it was easy to understand.

ACTION TAKEN: On a motion by Mr. Allion, seconded by Ms. De La Rosa, the Budget/Personnel Committee recommends that the Board receive the report and provide any recommendations. 8. CONSIDER AWARD OF CONTRACT FOR GEOGRAPHIC INFORMATION

SYSTEM (GIS) SUPPORT SERVICES Ms. Gonzalez stated that the Agency does not currently have a Geographic Information System (GIS). She explained that GIS is a computer system that allows you to map, model, query, and analyze large quantities of data within a single database according to their location. Ms. Gonzalez went over the various benefits of having a GIS such as the ability to create maps that are informative and help make high level decisions within an organization. Ms. Gonzalez stated that staff has researched the various software configurations of GIS and received a proposal from Arete Systems for support services in implementing the GIS platform at the Agency. The implementation support contract will include GIS Software Purchase support, CMMS Support, GIS needs assessment, Preliminary GIS Data Model Development, and GIS Data Conversion on a time and materials basis. The highlights of this contract will include initial training on the use of the GIS software, evaluation of CMMS software for compatibility with GIS, assistance with identifying where GIS will improve the Agency business processes, GIS model development and initial data conversion. Ms. Gonzalez stated that staff has met with Alex Johnson of Arete Systems twice over the past six months to discuss the steps for initial GIS implementation at the Agency. Mr. Johnson proposed a “bare bones” approach to implementation that can be added onto as we need additional data added to the system and as

BUDGET/PERSONNEL COMMITTEE DRAFT April 10, 2015 Page 6 of 7

additional users are included. The proposal received from Arete Systems is based on Mr. Johnson’s hourly rate of $115. She noted that the items within the contract would be flexible for Agency staff to request assistance in areas as they are needed. The contract would not exceed 165 hours at $115 per hour for a total of $18,975. Mr. Sciuto added that although this purchase is below Keith’s authorized purchasing level, staff wanted to bring this item before the BPC because in order to implement a robust GIS program, additional costs will be incurred over time. Mr. Le stated that while he is in support of this purchase he would like to see a Master IT plan for the Agency. In response to Mr. Le’s comment, Mr. Sciuto stated that at the March Board meeting the board approved a contract for the development of an Information Technology Strategic Plan. Mr. Sciuto also noted that staff has been taking tours of others Agencies to see what GIS and CMMS systems they are using and receiving their feedback.

ACTION TAKEN: On a motion by Mr. Allion, seconded by Ms. De La Rosa, the Budget/Personnel Committee recommends that the Board approve a contract with Arete Systems in the not to exceed amount of $18,975 for GIS support services.

9. STAFF MEMBER COMMENTS (None)

10. COMMITTEE MEMBER COMMENTS (None)

At 1:14 pm Chair Fischer adjourned Open Session and commenced Closed Session at 1:15 pm.

11. RECESS TO CLOSED SESSION

A. Public Employee Appointment Pursuant to Government Code 54957

Title: General Manager

At 2:05 pm Chair Fischer adjourned Closed Session and reconvened Open Session.

12. POSSIBLE ACTION ON CLOSED SESSION ITEMS

Legal Counsel reported that with regard to Item 11-A (Public Employee Appointment), information was received and discussed by the Committee, and instructions were given to the Agency’s personnel negotiator. No other reportable action was taken.

BUDGET/PERSONNEL COMMITTEE DRAFT April 10, 2015 Page 7 of 7

13. ADJOURNMENT At 2:06 pm, with no further business, Chair Fischer adjourned the

Budget/Personnel Committee meeting to the next regularly scheduled Budget/Personnel Committee meeting on Friday, May 8, 2015 at 12:30 pm.

Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services Water District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District,

Monterey, Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

MEMORANDUM TO: BUDGET/PERSONNEL COMMITTEE FROM: TORI HANNAH, CHIEF FINANCIAL OFFICER

(Via Keith Israel, General Manager) DATE: MAY 8, 2015 SUBJECT: UPDATE ON FY 15/16 BUDGET ────────────────────────────────────────────────── OVERVIEW: The preliminary draft of the Fiscal Year 2015/16 operational revenues and expenditures are attached for reference (Attachment 1). The estimated net operating difference of $3.5 million is planned to be allocated among significant maintenance projects, capital equipment, and capital projects. The operational revenues and expenditures may change, as staff receives updates on revenue trends, identifies cost-savings opportunities, and prioritizes capital outlay. The General Fund reserve level is projected to be above the $2 million reserve policy requirement. A discussion of key areas is included in the subsequent sections. OPERATING REVENUES: The FY 15/16 revenues are initially projected to be 5.7% or $1.27 million greater than the FY 14/15 Approved Budget. The Agency is in the second year of a three-year rate increase, with Residential User Rates increasing by 3.4%. A listing of FY 15/16 user rates by category is included in Attachment 2. Residential and Commercial Users provide for over 86% of Agency revenues. The combined increase from these two categories is anticipated to be $713,000; with an additional $100,000 increase associated with a new Industrial User. The remaining annual increase is largely attributed to $453,000 in new revenues associated with the Interruptible Water Supply Rate. OPERATING EXPENDITURES: While the Agency is still in the process of reviewing cost savings opportunities and evaluating major expenditure requests, key changes included a negotiated

3.4% cost of living increase and an unplanned PERS rate increase. The PERS rate growth for classic Tier I employees includes a new fixed base and a percentage rate that results in a combined increase of greater than 4% points. These two changes represent approximately a 5.7% or $540,000 increase in Wages and Benefits. Preliminary additional costs associated with the Salinas Agricultural Wash/Interruptible Water Supply include $100,000 in additional electricity costs for the pump stations and $90,000 for Ferric Chloride. It is the Agency’s goal to limit increases in the Services and Supplies category equivalent to the prior year rate of 1.3% or at a maximum of 2%. STAFFING: There are no major staffing changes, but some minor modifications for consideration:

An addition of one summer intern in the Engineering and Safety Departments: This person will help with routine tasks in both departments and will facilitate the completion of required projects with repetitive duties. The budget impact for Fiscal Year 2015/2016 will be $6,500.

The reclassification of the current Contract Recycled Water Program Assistant: This position is proposed to become a regular, full-time employee and change the title to Water Projects Coordinator with emphasis on public outreach and grant coordination/legislative advocacy with an associated change in job description. The impact on the FY 15/16 budget will be an additional $25,000 for benefits and most costs will continue to be funded from UR502 and CP255.

A proposed structural change to the organization is as follows (Attachment 3):

Have the Chief Financial Officer and the Human Resources Administrator report directly to the General Manager: This change will allow more direct information transfer in these two areas to the General Manager. Also, the reduction of scope of employees for the new AGM will promote more focus on Operations, Maintenance, and Engineering.

CAPITAL PURCHASES AND CAPITAL IMPROVEMENTS Preliminary estimates indicate there will be approximately $3.5 million in operating transfers and $600,000 in Sewer Capacity Charges available for capital improvements and purchases. Staff is in the process of reviewing major expenditure requests that could be applicable to the Major Operation and Maintenance, Capital Equipment, Capital Projects, and Urban Reclamation Funds. A list of items for funding consideration is included in Attachment 4 and 5.

FORTHCOMING BUDGET ACTIVITIES Staff will review specific key changes to the budget and discuss fund balances at the meeting. In addition, staff will continue to refine the preliminary estimates. Based on input received from the BPC, staff will prepare the full budget for the Board’s Budget Workshop on June 8, 2015. As stated previously, this is a preliminary draft budget. There are still a number of items that need to be discussed and finalized. Information received from the Budget and Personnel Committee will be incorporated into the May 28 Board Meeting.

Information Only – No action required.

Attachment 1: Preliminary draft FY 15/16 Budget Attachment 2: User Fees by Category Attachment 3: Proposed MRWPCA Organizational Chart Attachment 4: Preliminary Draft: Five Year CIP Attachment 5: Capital Equipment Requests

2015 2016 FY 15 Budget to %

Approved Budget Dept. Request FY16 Budget Change

REVENUES

Residential 15,279,851$ 15,851,600$ 571,749$ 3.7% (a)

Commercial 4,158,569 4,300,000 141,431 3.4%

Industrial 239,146 350,000 110,854 46.4% (b)

Military 373,000 375,000 2,000 0.5%

Subtotal User Fees 20,050,566 20,876,600 826,034 4.1%

Liquid Waste & Grease Hauler 480,000 505,000 25,000 5.2%

Diluted Oily Waste 110,000 142,000 32,000 29.1%

User Penalty Fees 330,000 345,000 15,000 4.5%

Brine 160,000 150,000 (10,000) -6.3%

Fees Outside Entities 175,000 189,000 14,000 8.0%

Interruptible Water Supply - 435,000 435,000 100.0% ( c)

NSD Service Fees 84,000 83,600 (400) -0.5%

Co-Gen Power Sales 15,000 25,000 10,000 66.7%

Other 708,500 630,123 (78,377) -11.1%

Total Operating Revenues 22,113,066$ 23,381,323$ 1,268,257$ 5.7%

- - EXPENDITURES

Wages and Benefits 9,390,061 9,929,582 539,521 5.7% (d)

Training and Administration 146,895 183,160 36,265 24.7%

Office Expenses 310,700 345,550 34,850 11.2%

Information Systems 323,855 373,205 49,350 15.2% (e)

Prof. /Billable Services 769,400 806,400 37,000 4.8%

Operating Supplies 390,950 467,400 76,450 19.6% (f)

Contract Services 548,652 543,070 (5,582) -1.0%

Chemicals 1,348,454 1,459,013 110,559 8.2% (g)

Utilities 2,181,775 2,267,760 85,985 3.9% (h)

Maintenance & Repairs 1,401,550 1,430,050 28,500 2.0%

Total O& M 16,812,292$ 17,805,190$ 992,898$ 5.9%

Debt Service 1,996,012 2,030,063 34,051 1.7%

Major O & M 325,000

Transfer to Reserves (1) 2,979,771

Total Expenditures 22,113,075$ 19,835,253$

Net Difference (9) 3,546,070$

Preliminary Net Operating Difference 3,546,070$

Capacity Fees 600,000

Projected Amount for Allocation 4,146,070$

Footnotes:

(a) Reflects 3.4% increase based on customer accounts. Year to date estimates are anticipated to be higher than Approved Budget

(b) Reflects current trends, similar to FY 13/14. In the Approved Budget, one industry projected to close; however another business opened.

( c) Based on current rates and also last year flow patterns at new rate

(d) Increases related to 3.4% COLA, approx. 4% point change in PERS, increased medical, net of prior year position transitions

(e) Increased data support and programming, primarily related to SCADA system

(f) Increased costs for worn hoses, clamps, & connectors; safety supplies and protective clothing, SCADA equip./software, and general supplies

(g) Increased costs for Ferric Chloride for the Salinas Agricultural Wash.

(h) Increased electricity costs for pump stations related to the Salinas Agricultural Wash.

PRELIMINARY DRAFT FY 15/16 BUDGETMay 1, 2015

Amounts for Major O & M, capital outlay, and capital transfers are currently under review.

Current Proposed Percent of Increase

Category 7/1/2014 7/1/2015 7/1/2015

Business/Government 10.05$ 10.40$ 3.5%

Residential 14.85$ 15.35$ 3.4%

Transient Occupancy Residential 14.85$ 15.35$ 3.4%

Hotel/Motel 6.30$ 6.50$ 3.2%

Bed & Breakfast Inn 4.15$ 4.30$ 3.6%

Supermarket 100.00$ 104.00$ 4.0%

Medical Office 12.85$ 13.30$ 3.5%

Dental Office 17.60$ 18.20$ 3.4%

Rest Home/Convalescent 3.90$ 4.05$ 3.8%

General Hospital 23.15$ 23.95$ 3.5%

Animal Hospital 26.70$ 27.65$ 3.6%

Restaurant–One Meal 0.95$ 1.00$ 5.3%

Restaurant–Two Meals 1.45$ 1.50$ 3.4%

Restaurant–Three Meals 2.80$ 2.90$ 3.6%

Restaurant w/Bar 2.80$ 2.90$ 3.6%

Bar 23.05$ 23.85$ 3.5%

Nightclub 68.40$ 70.80$ 3.5%

Takeout Food–Small 33.40$ 34.55$ 3.4%

Takeout Food–Medium 81.65$ 84.50$ 3.5%

Takeout Food–Large 149.00$ 154.00$ 3.4%

Bakery 38.55$ 39.90$ 3.5%

Theater 31.70$ 32.80$ 3.5%

Bowling Center 97.00$ 100.00$ 3.1%

Mortuary 48.95$ 50.65$ 3.5%

School (Minimum) 10.05$ 10.40$ 3.5%

School (0-6) 0.13$ 0.13$ 0.0%

School (7-College) 0.26$ 0.27$ 3.8%

Boarding School 3.05$ 3.15$ 3.3%

Service Station/Repair 10.50$ 10.85$ 3.3%

Dry Cleaners 32.80$ 33.95$ 3.5%

Laundromats 8.40$ 8.70$ 3.6%

Vacant Residence 8.55$ 8.85$ 3.5%

Vacant Business 7.40$ 7.65$ 3.4%

User Fees by Category

Board of Directors

General Manager

Assistant General ManagerChief Financial

Officer

Engineering

Manager

Admin Support

Specialist I/II

Legal Counsel

MRWPCA

Organizational Chart

Updated May 2015

Human Resources

Administrator

Maintenance

Manager

Principal Engineer/GWR Staff

Accountant

Info Systems

Administrator

Executive Assistant

Operations

Manager

Customer Service

Supervisor

Operations

SupervisorField Maint

Supervisor Associate Engineer

Safety Officer

Accounting Tech.

Accounting Asst. I/II

Admin Support

Spec I/II

Sr. Cust Svc Rep

Cust Svc Rep I/II

Admin Support

Spec I/II

Admin Support

Spec I/II

Lab Supervisor

Sr. Lab

Analyst

Lab Analyst

I/II/Tech

Source Control

Supervisor

Source Control

Inspector I/II/Tech

Operator

I/II/III

Bio-solids

Operator

Utilities

Supervisor

Mechanic I/II

PM

Mechanic

Sr. Maint

Mech

Storeroom

ClerkElec/Inst Tech I/II

Electrician

Instrumentation

Systems Tech

Co-Gen Mech I/II

Sr. Elec/Inst Tech

Sr. Distribution

Mechanic

Distribution

Mechanic II

Procurement

Specialist

Plant Maint

Supervisor

Maint Mech I/II

Painter

PM Coordinator

Groundskeeper

Assistant Engineer

Storm Water

Program Manager

DESCRIPTION

Dept

15-16

BUDGET

16-17

BUDGET

17-18

BUDGET

18-19

BUDGET

19-20

BUDGET TOTAL PS

RTP

SVR

P

CSI

P

Pro

cess

Are

a

- X RTP Master Plan- RTP

- X Pump Stations Master Plan- Pump Stations

$120,000 $ 120,000 X Cogen Master Plan- Cogen

- RTP Greenhouse Gas Study

$5,000 $ 5,000 All Agency Roofing Plan

$85,000 $ 85,000 ArcFlash Pump Stations, MCWRA, City Pump Stations

$240,000 $160,000 $ 400,000 Energy Management Study

$10,000 $ 10,000 RTP/PS Coating 10 Year Plan

$20,000 $ 20,000 Lagoon Stability Assessment

$100,000 $ 100,000 Pump Station Hydraulic Modeling

$20,000 $ 20,000 On Call Eng Support

$20,000 $ 20,000 Miscellaneous Consulting Services

- X X X General- SCADA SCADA

40 $100,000 $ 100,000 General- SCADA - Pump Station Uniform Asset Tagging Project (Proj #4)

40 $375,000 $ 375,000 General- SCADA - Networking Center Consolidation Project (Proj #7b)

40 $120,000 $ 120,000 X General - SCADA - Control Room Remodel (Proj #8)

40 $62,500 $187,500 $125,000 $125,000 $ 500,000 General- SCADA - SCADA Migration RTP Ph 2 (Proj #15)

40 $75,000 $225,000 $150,000 $150,000 $ 600,000 General- SCADA - SCADA Migration PS Ph 2 (Proj #16)

40 $50,000 $50,000 $ 100,000 General- SCADA - Database Integration (Proj 24 & 25)

40 $50,000 $ 50,000 General- SCADA - Ops Logging Software (Proj #26)

40 $150,000 150000 $150,000 $100,000 $ 550,000 General- SCADA - CMMS Implementation (Proj #27)

40 $100,000 $100,000 $ 200,000 General- SCADA - Online O&M Ph 2 of 3 (Proj 30)

40 $50,000 $50,000 $ 100,000 General- SCADA - GIS

40 $125,000 $ 125,000 Biofloc Biofloc Influent Channel Gate Replacement

40 $80,000 $ 80,000 X Buildings Butler Building Roof

40 $150,000 $500,000 $ 650,000 X Class C PS Class C Pump Station Redesign

LOCATION

PRELIMINARY DRAFT: 5 YEAR CIP 2015-2016

DESCRIPTION

Dept

15-16

BUDGET

16-17

BUDGET

17-18

BUDGET

18-19

BUDGET

19-20

BUDGET TOTAL PS

RTP

SVR

P

CSI

P

Pro

cess

Are

a

LOCATION

PRELIMINARY DRAFT: 5 YEAR CIP 2015-2016

40 $250,000 $3,000,000 $ 3,250,000 Cogen Plant Power Equipment- 480V Main Switchboard

40 $1,760,000 $ 1,760,000 Cogen Plant Power Equipment- 21kV Switchgear

37 - Cogen Cogen Facility- Upgrades

37 $750,000 $ 750,000 X Cogen Cogen Compressor

40 - Digesters Food Waste & FOG Facility

40 $150,000 $200,000 $275,000 $ 625,000 X General Seismic Upgrades

40 $350,000 $ 350,000 X General RTP Sewer Line Replacement

40 $150,000 $800,000 $800,000 $800,000 $ 2,550,000 X General Older MCCs

40 $210,000 $ 210,000 X X General Pavement Rehab- whole facility + repairs at lagoons

40 $140,000 $ 140,000 X Grit Removal Grit Removal- piping replacement, stop logs, scum pumps

40 $60,000 $ 60,000 X Headworks Headworks Influent Sluice Gate Actuators & Gates

$210,000 $ 210,000 Headworks Headworks Screenings Compactor and Bin Cover

40 $350,000 $ 350,000 X Headworks Headworks- concrete repair and coating

40 $152,000 $ 152,000 X Primaries Primary Clarifiers- scum pumps

40 $292,000 $ 292,000 X Primaries Primary Clarifiers 1-4- dome rehabilitation

$51,000 $ 51,000 X Primary 5 Primary Clarifier 5 Influent gates and actuators

40 $90,000 $ 90,000 X Primary 5 Primary 5 Sludge Lines Cleanouts

40 $100,000 $ 100,000 X Screwpress RTP Screwpress Manhole for Process Control Monitoring

40 - X Screwpress 3rd Screw

$119,000 $ 119,000 X Secondaries Mixed Liquor Distribution Structure Gates and Valves

40 $175,000 $ 175,000 X Secondaries

Secondary Clarifiers- RSSL Pumps and Controls (2 pumps

and controls)

$210,000 $ 210,000 X Secondaries WSSL Pumps

$35,000 $ 35,000 X Secondaries Secondary Effluent Rapid Mix Structure Gate and meters

DESCRIPTION

Dept

15-16

BUDGET

16-17

BUDGET

17-18

BUDGET

18-19

BUDGET

19-20

BUDGET TOTAL PS

RTP

SVR

P

CSI

P

Pro

cess

Are

a

LOCATION

PRELIMINARY DRAFT: 5 YEAR CIP 2015-2016

$340,000 $ 340,000 X Storm Pond Access Ramp Rehab, Liner Repair

40 $106,000 $ 106,000 X Thickeners DAFT and Gravity Thickeners Dome Rehabilitation

$85,000 $ 85,000 Thickeners Scrubber Retrofit to Bioscrubber

40 $50,000 $ 50,000 X Trickling Filter Trickling Filter Odor Scrubber Demo

$480,000 $ 480,000 X Trickling Filter Trickling Filter VFDs

$6,620,000 $ 6,620,000 X Trickling Filter Trickling Filter Mechanisms & Domes #1 & 2

$6,300,000 $ 6,300,000 X Trickling Filter Trickling Filter Mechanisms & Domes #3 & 4

- X Trickling Filter Trickling Filter Influent and Effluent Gates

40 $125,000 $ 125,000 X

Old Chemical

Building GWR Demonstration Project

$250,000 $ 250,000 X PS Seismic Evaluations

32 $400,000 $ 400,000 X SAPS Salinas Pump Station Capacity Enhancements

32 $115,000 $ 115,000 X SAPS Salinas Influent Sluice Gate Rehab

32 $200,000 $524,000 $ 724,000 X MLPS Moss Landing Pump Station Upgrades

32 $340,000 $ 340,000 SEPS Seaside Pump Station VFD Conversion

$584,000 $ 584,000 X SEPS Pump Replacement

$208,000 $ 208,000 X SEPS Carbon Scrubbers & Odor Control Fans

32 $255,000 $ 255,000 X MAPS Marina Pump Station- Generator with AST & UST Removal

$130,000 $ 130,000 X MAPS Marina Drives

$40,000 $ 40,000 CAPS Castroville Roofing

$100,000 $ 100,000 Sta 15 Coral St Dry Side Pump Replacement

32 $109,000 $ 109,000 X Sta 13 Station 13- Upgrade PLC to Ethernet

32 $109,000 $ 109,000 X SAPS Salinas Pump Station- Upgrade PLC to Ethernet

32 $225,000 $ 225,000 X SEPS Concrete Corrosion Rehab

$518,000 $ 518,000 X SEPS Inlet Rehab

$50,000 $ 50,000 X FOPS Roof Replacement

$870,000 $ 870,000 X FOPS Pump Replacement

DESCRIPTION

Dept

15-16

BUDGET

16-17

BUDGET

17-18

BUDGET

18-19

BUDGET

19-20

BUDGET TOTAL PS

RTP

SVR

P

CSI

P

Pro

cess

Are

a

LOCATION

PRELIMINARY DRAFT: 5 YEAR CIP 2015-2016

$180,000 $ 180,000 X MOPS Monterey PS Drives$3,353,000 $8,584,500 $6,262,500 $7,845,000 $9,077,000 $35,122,000

Major O & M

$325,000 $350,000 $350,000 $350,000 $350,000 $1,725,000 X General Annual Coating Project

$325,000 $350,000 $350,000 $350,000 $350,000

REF DEPT FY15/16 COST LOCATION DESCRIPTION

NO EQUIPMENT MATERIAL LABOR (hrs) TOTAL PS

RTP

1601 Environmental Services $10,000 2 $10,150 X Laboratory Muffle Furnace

1602 Field Maintenance 11,750 $1,650 24 15,200 X FOPS Flow Meter 18"

1603 Field Maintenance 11,750 1,650 24 15,200 X SEPS Flow Meter 18"

1604 Field Maintenance 7,400 350 24 9,550 X CAPS Flow Meter 12"

1605 Plant Maintenance 100,000 100,000 X Vehicle Replacement

1606 Plant Maintenance 10,000 10,000 X Influent Flow Meter at Headworks

1607 Operations 13,000 13,000 X Grating at Rapid Mix Structure

1608 Field Maintenance 25,000 25,000 X SAPS HVAC Unit

1609 Field Maintenance 50,000 10 50,750 X SEPS Spare Low Flow Pump

1610 Field Maintenance 23,000 27 25,025 X Reeside Spare Pump

1611 Field Maintenance 42,000 1,600 160 55,600 X CAPS VFD Replacement (2)

1612 Field Maintenance 50,000 10 50,750 X Dimminutor

1613 Cogen 15,000 15,000 X Cogen Engine Panels (3) Load Controllers

1614 Operations 5,000 5,000 X Weather Station

1615 Operations 12,000 12,000 X Scale Controller Automation Upgrade

1616 Operations 5,000 5,000 X Power Quality Meter

1617 Plant Maintenance 5,000 5,000 X Server Room Virtual Machine Logix 5000 Software

1618 Field Maintenance 50,000 50,000 X SEPS, FOPS, SAPS Wet Well and Dry Well Hatches

1619 Operations 15,000 15,000 X Headworks Transfer Switch1620 Environmental Services 6,000 6,000 X Laboratory Centrifuge

TOTALS $466,900 $5,250 $21,075 $493,225

DEPT TOTAL DESCRIPTION

N/A Administration $34,500 Harris Court Remodel - Kitchen and Restrooms

N/A Field Maintenance 36,500 Breaker Testing at Major Pumpstations

N/A Field Maintenance 50,000 Hatch Replacement

N/A Field Maintenance 50,000 Monterey Gravity Pipeline Inspection

N/A Field Maintenance 50,000 Pump Rebuilds

N/A Operations 30,000 Lunch Room Remodel

N/A Plant Maintenance 20,000 Paint RTP Admin. Exterior

N/A Cogen 30,000 Blend Station AutomationN/A Cogen 53,000 Retubing HRU 2

TOTALS $354,000

Capitalized Equipment Requests

FY 2015/2016

FY 2015/16 Operating Budget Requests - Review for Capital Classification

Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services Water District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District,

Monterey, Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

MEMORANDUM TO: BUDGET/PERSONNEL COMMITTEE FROM: JERRY VALLADAO, ASSOCIATE ENGINEER (Via Keith Israel, General Manager) DATE: MAY 8, 2015 SUBJECT: CONSIDER AWARD OF CONSTRUCTION CONTRACT FOR

THE GRIT PIPING REPLACEMENT PROJECT ────────────────────────────────────────────────── BACKGROUND: Grit removal from wastewater is essential to any treatment plant as a preliminary treatment process to protect equipment by reducing the likelihood of pipes clogging and preventing wear and tear to mechanical equipment from grit abrasion. Grit removal also helps prevent grit from accumulating in the downstream processes such as within the primary clarifiers resulting in loss of usable volume. Two aerated grit chambers are used to settle grit from wastewater at MRWPCA’s Regional Treatment Plant. Wastewater flow from the headworks is split to either or both of the two aerated grit chambers. Air is supplied to four diffuser headers in each grit chamber. Aeration imparts a rolling motion in the wastewater as it flows through the grit chambers. This helps to settle the grit into the four hoppers in the bottom of each chamber while keeping the organic matter in suspension. Grit slurry, consisting of sand, dirt and other small particles, is pumped from the hopper and conveyed by piping to the two grit mitts by eight pumps. The grit mitt settling tank is designed to effectively separate and settle the grit from the water. As the grit is conveyed out of the settling tank, it is lightly washed, dewatered, and discharged into a dumpster. The decant liquid flows back to the post grit area for treatment. The grit piping that discharges the grit slurry to the grit mitts is in need of repair and was not budgeted for this Fiscal Year 14/15. Much of the piping is the original piping that was installed when the Regional Treatment Plant was constructed back in the late 1980s. The piping is in poor condition and has

deteriorated to a point where a portion of the piping failed last year due to corrosion, resulting in flooding the grit pump pit. Please see the photos below showing the flooded grit pump pit. The amount of wastewater flowing into the grit pump pit overwhelmed the existing sump pumps. There have also been two separate incidents after the initial flooding where the grit piping has sprung additional small leaks due to corrosion. In the past, ferric chloride has been introduced upstream within the headworks to help the downstream processes remove suspended solids in wastewater, but it was determined that adding ferric wasn’t cost effective. Ferric is fairly corrosive and could have further reduced the life of the grit piping which is just downstream of the headworks. Staff has determined that it is time for the piping to be replaced with new glass lined ductile iron piping, change the alignment slightly to reduce the amount of bends, and install additional pipe supports. The project was put out to bid on March 5th, and a mandatory pre-bid meeting was held on March 18th. Five potential bidders attended the mandatory pre-bid meeting. The bid opening was held on March 26th, and 5 bids were received. Below is a summary of the bids received.

Bidder Location Bid Amount

Special Service Contractors, Inc.

Paso Robles, CA $107,114.00

D.W. Nicholson Corporation

Hayward, CA $135,500.00

Whitaker Construction Group, Inc.

Paso Robles, CA $158,600.00

Anderson Pacific Engineering Construction, Inc.

Santa Clara, CA $168,122.00

TNT Industrial Contractors, Inc.

Sacramento, CA $174,399.00

Based on the above information, the successful bid was received from Special Service Contractors, Inc. (Special Service Contractors) for a total of $107,114.00. Special Service Contractors comes highly recommended by all of the agencies that were contacted during their reference check. Staff requests that the Budget and Personnel Committee (B&P Committee) recommend to the Board approval of a construction contract with Special Service Contractors. Staff also requests that the B&P Committee recommend Board approval for Special Service Contractors to begin the project in early June prior to approving the Fiscal Year 15/16 budget at the June 29th Board Meeting. This project will be budgeted for Fiscal Year 15/16. Staff recommends project construction should begin as soon as possible to prevent any future flooding and to provide a safer environment for Maintenance and Operations Personnel when

working down in the grit pump pit. If the approval is granted to begin the project in early June, some submittal review will occur during this Fiscal Year 14/15. It is estimated that approximately $3,000 for in-house staff time will be spent this Fiscal Year 14/15 in project management and reviewing submittals. This amount will be absorbed by savings obtained so far in the Fiscal Year 14/15 Capital Improvement Program. The piping, fittings, and supports will be obtained and actual project construction will occur during Fiscal Year 15/16. Therefore, most of the work and the first payment to Special Service Contractors will be made after July 1st during Fiscal Year 15/16. The amount proposed for the Fiscal Year 15/16 budget for this project is $140,000 including staff time. RECOMMENDATION: Staff requests that the Budget and Personnel Committee recommend to the Board approval of a construction contract with Special Service Contractors in an amount of $107,114.00 with an additional $32,000 for in-house staff time and also requests B&P Committee recommend to the Board approval to begin the project in early June prior to approving the Fiscal Year 15/16 budget at the June 29th Board Meeting. The majority of the construction will occur during Fiscal Year 15/16 and will have a project budget of $140,000. Attachment 1: Pictures of Grit Pump Pit Flooding

Grit Pump Pit Prior to Flooding

Grit Pump Pit Flooding (Wastewater Just Under the Motors)

Grit Pump Pit Flooded (Wastewater Covering the Motors)

Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey,

Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

MEMORANDUM TO: BUDGET/PERSONNEL COMMITTEE FROM: PAUL SCIUTO, DEPUTY GENERAL MANAGER (Via KEITH ISRAEL, GENERAL MANAGER) DATE: MAY 8, 2015 SUBJECT: CONSIDER APPROVAL OF RESOLUTION FOR EXCEPTION TO

THE 180-DAY WAIT PERIOD FOR HIRING A RETIREE (ISRAEL)

BACKGROUND: In 2012, Assembly Bill No. 340 was signed by the Governor and added various sections to the California Government Code. These modifications are generally referred to as the Public Employee Pension Reform Act (PEPRA). One of the provisions of this new language governs post-retirement employment for retirees within the same retirement system. Specifically, §7522.56(f) prohibits a retiree from being employed for a period of 180 days following retirement. There are limited exceptions to the 180-day waiting period for post-retirement employment within the same retirement system. One of those exceptions allows an employer to employ a recent retiree before the expiration of 180 days if the employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed position. The appointment must be approved by the governing body in a public meeting and may not be placed on the consent agenda. Mr. Keith Israel has served as the General Manager since September 1988. During that time he oversaw the development of the Groundwater Recharge (GWR) Project up to its current state. Mr. Israel possesses invaluable knowledge of the history of the Agency and GWR Project that will be needed to assist with the completion of the Project. Mr. Israel’s last day of employment with the Agency will be June 20, 2015. Effective June 21, 2015, Mr. Israel will be

BUDGET/PERSONNEL COMMITTEE CONSIDER APPROVAL OF RESOLUTION FOR EXCEPTION TO THE 180-DAY WAIT PERIOD FOR HIRING A RETIREE (ISRAEL) May 8, 2015 Page 2 of 2 considered a CalPERS retiree. At this time, the GWR Project continues to require the knowledge and history that Mr. Israel possesses. The Agency proposes employment of Mr. Israel as a retired annuitant to assist in the critical issues of the GWR Project on a limited, part-time, hourly basis. Prior to any work being performed by Mr. Israel, it will be approved by the General Manager and the Chair of the Board of Directors. The Agency proposes paying Mr. Israel $60 an hour, with no benefits, to fill the GWR Associate Project Coordinator position on an as needed basis through June 30, 2016. Attached is the resolution (Attachment 1), draft agreement for temporary employment (Attachment 2), and potential duties of the position (Attachment 3). The workload is expected to be between 0 and 24 hours per month, contingent upon specific needs. RECOMMENDATION: Staff requests that the Budget and Personnel Committee recommend that the Board approve MRWPCA Resolution No. 2015-XX for exception to the 180-day wait period for hiring a retiree, Keith Israel. Attachment 1: MRWPCA Resolution No. 2015-XX for exception to the 180-day wait

period for hiring a retiree Attachment 2: Draft agreement for temporary employment Attachment 3: Potential Duties for GWR Associate Project Coordinator position

RESOLUTION NO. 2015–XX

A RESOLUTION OF THE MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY BOARD OF DIRECTORS FOR EXCEPTION TO THE 180-DAY WAIT PERIOD (GOVERNMENT CODE SECTIONS 7522.56 & 21224) HIRING OF A RETIREE, KEITH ISRAEL

-oOo-

WHEREAS, in compliance with Government Code section 7522.56 the Monterey

Regional Water Pollution Control Agency Board of Directors must provide CalPERS this

certification resolution when hiring a retiree before 180 days has passed since his or her

retirement date; and

WHEREAS, Keith Israel, CalPERS ID# 2309909883, will retire from the

Monterey Regional Water Pollution Control Agency in the position of General Manager,

effective June 21, 2015; and

WHEREAS, section 7522.56 requires that post-retirement employment

commence no earlier than 180 days after the retirement date, which is December 18,

2015 without this certification resolution; and

WHEREAS, section 7522.56 provides that this exception to the 180-day wait

period shall not apply if the retiree accepts any retirement-related incentive; and

WHEREAS, the Monterey Regional Water Pollution Control Agency Board of

Directors of the Monterey Regional Water Pollution Control Agency, and Keith Israel

certify that Keith Israel has not and will not receive a Golden Handshake or any other

retirement-related incentive; and

WHEREAS, the Monterey Regional Water Pollution Control Agency Board of

Directors hereby appoints Keith Israel as an extra help retired annuitant to perform the

duties of the GWR Associate Project Coordinator for the Monterey Regional Water

Pollution Control Agency under Government Code section 21224, effective July 1, 2015;

and

WHEREAS, the entire employment agreement, contract or appointment

document between Keith Israel and the Monterey Regional Water Pollution Control

Agency has been reviewed by this body and is attached herein; and

WHEREAS, no matters, issues, terms, or conditions related to this employment

and appointment have been or will be placed on a consent calendar; and

WHEREAS, the employment shall be limited to 960 hours per fiscal year; and

WHEREAS, the compensation paid to retirees cannot be less than the minimum

nor exceed the maximum monthly base salary paid to other employees performing

comparable duties, divided by 173.333 to equal the hourly rate; and

WHEREAS, the maximum base salary for this position is $11,098.53 and the

hourly equivalent is $64.03, and the minimum base salary for this position is $8,692.67

and the hourly equivalent is $50.15; and

WHEREAS, the hourly rate paid to Keith Israel will be $60.00; and

WHEREAS, Keith Israel has not and will not receive any other benefit incentive,

compensation in lieu of benefit or other form of compensation in addition to this hourly

pay rate; and

THEREFORE, BE IT RESOLVED THAT the Monterey Regional Water Pollution

Control Agency Board of Directors hereby certifies the nature of the appointment of

Keith Israel as described herein and detailed in the attached employment agreement

and that this appointment is necessary to fill the critically needed position of GWR

Associate Project Coordinator for the Monterey Regional Water Pollution Control

Agency by July 1, 2015 to assist, as necessary and requested by the General Manager

and Board Chair, with critical issues for the Groundwater Recharge project preparation

for the California Public Utilities Commission (CPUC) decisions through June 30, 2016 .

PASSED AND ADOPTED by the Board of Directors of the Monterey Regional

Water Pollution Control Agency at a regular meeting duly held on May 28, 2015, by the

following vote:

AYES: BOARD MEMBERS:

NOES: BOARD MEMBERS:

ABSENT: BOARD MEMBERS:

Gloria De La Rosa, Board Chair Board of Directors ATTEST: Keith E. Israel General Manager/Secretary

1

AGREEMENT FOR

TEMPORARY EMPLOYMENT

This AGREEMENT is made and entered into on July 1, 2015, by and between the

Monterey Regional Water Pollution Control Agency, a California Joint Powers Authority,

hereinafter referred to as "MRWPCA," and Keith Israel hereinafter referred to as

"Employee," as follows:

RECITALS

1. Employee has the requisite skill, training and experience to properly perform the services

herein contemplated.

2. MRWPCA desires to retain Employee to provide the services herein contemplated.

TERMS AND CONDITIONS

1. Scope of Services. Employee shall provide services as requested by MRWPCA, to include

all duties and responsibilities listed in Attachment A.

2. Commencement of Service. Employee will commence work on the services to be provided

hereunder immediately upon execution of this Agreement by both parties hereto.

3. Term.

A. The term of this agreement shall commence on July 1, 2015 and terminate on June

30, 2016, subject to termination by either party upon ten (10) days written notice.

B. Employee understands and agrees that Employee may be terminated at the will of

the Agency at any time with or without cause. Employee agrees that none of the

terms of this Agreement abrogate Employee’s at-will status or interfere with the

right of the Employee to resign at any time from the position of Employee, subject

only to the notice provisions set forth in paragraph 3, sub-paragraph A under Terms

and Conditions.”

4. Compensation. For the services to be performed under this Agreement, MRWPCA shall

compensate Employee at the rate of $60.00 per hour. Compensation is to be paid bi-weekly

by the MRWPCA upon receipt of a written statement of hours worked and services

performed by Employee. Compensation will not include health benefits, retirement, paid

vacation, sick leave, holiday pay (unless a holiday is worked), or overtime, unless over 40

hours is worked in a scheduled work week.

2

5. Benefits. Compensation will not include health benefits, paid vacation, sick leave or

retirement. Employee will not work more than 960 hours in a fiscal year in order to comply

with the Public Employees Retirement System (PERS) definition of a retired annuitant.

6. Personnel Rules. Except as modified by this Agreement, Employee agrees to comply with

the MRWPCA Employee Handbook, receipt of which is hereby acknowledged.

7. Modification. Employee acknowledges that this agreement cannot be modified orally. All

amendments or modifications will be in writing.

8. Assignment of Services. This is a standby Agreement to permit MRWPCA to assign work

from time to time, as appropriate. Employee shall provide MRWPCA reports of progress of

assignments, monthly or as such assignments are completed, whichever first occurs.

9. Compliance With Laws. Employee shall comply with all applicable state, federal and local

laws and safety regulations while performing services pursuant to this Agreement.

10. Attorneys' Fees. In the event of any controversy, claim or dispute relating to this

Agreement, or the breach thereof, the prevailing party shall be entitled to recover from the

losing party reasonable expenses, attorney's fees and costs.

IN WITNESS WHEREOF, Employee and the Monterey Regional Water Pollution Control

Agency by its duly authorized representative, have executed this Agreement on the date first

hereinabove set forth at 5 Harris Court, Building D, Monterey, California, 93940.

By

General Manager, MRWPCA Date

By

Employee Date

Attachment A

POTENTIAL DUTIES FOR GWR ASSOCIATE PROJECT COORDINATOR

Assist in preparation of materials for CPUC hearings, testimony, and related correspondence

Summarize and provide historical information related to the GWR Project

Prepare for and attend meetings on specific MRWPCA topics

Assist with review or preparation of Committee and Board information/agendas

Other specific tasks as assigned

Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey,

Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

MEMORANDUM TO: BUDGET/PERSONNEL COMMITTEE FROM: PAUL SCIUTO, DEPUTY GENERAL MANAGER

(Via Keith Israel, General Manager) DATE: MAY 8, 2015 SUBJECT: CONSIDER APPROVAL OF EMPLOYEE CERTIFICATION AND

CAREER INCENTIVE PROGRAMS

BACKGROUND: Last month staff presented to the Committee an update on the Certification and Career Incentive Programs. The Certification Incentive Program (Attachment 1) includes positions that require a certain level of certification and the employees pursuing the educational track will qualify under the Career Incentive Program (Attachment 2). In order for the employees to qualify for Program B in either program, they must achieve the certification level that is above their current required level of certification. For example, if a Grade III is required for the position based off of the job description and the employee obtained a Grade IV, they would receive a 2% increase, not the 4%. The max obtainable is 4%. The Certification Incentive Program addresses two types of certifications each with two different programs. The first is for positions whose job description requires a certification through the California Water Environment Association (CWEA). Each certification has four grade levels that the employee can obtain. The chart below illustrates the amount an employee can receive for each grade level.

Program A (CWEA Certification) Program B (CWEA Certification)

Grade I * $200 (One-time Bonus) Grade III 2% Increase

Grade II * $250 (One-time Bonus) Grade IV* 2% Increase * Or, equivalent position.

BUDGET/PERSONNEL COMMITTEE CONSIDER APPROVAL OF EMPLOYEE CERTIFICATION AND CAREER INCENTIVE PROGRAMS May 8, 2015 Page 2 of 3 The second type of certification is for those positions whose job description requires a certification through the State Water Resources Control Board (SWRCB). Due to the size and different types of wastewater treatment processes at the Regional Treatment Plant (RTP), the SWRCB requires the Agency to employ at least one Grade V Wastewater Treatment Plant Operator. We also need Grade III Wastewater Treatment Plant Operators to operate the plant for our off-shifts (swing, weekend and graveyard). These levels of certifications are required to stay in compliance with our National Pollutant Discharge Elimination System (NPDES) permit. The SWRCB offers five grade levels for this certification. Because the Operator certifications are mandated by the State, the Agency has offered them the following incentive: Program A (SWRCB Certification) Program B (SWRCB Certification)

Grade I* $200 (One-time Bonus) Grade IV 2.5% Increase

Grade II* $250 (One-time Bonus) Grade V* 3.5% Increase

Grade III* $300 (One-time Bonus) * Or, equivalent position To promote cross-training within the Agency, we offer Program C to all employees, even those whose position doesn’t require one of the above certifications. If an employee gets a certification for a position outside of their current position, the Agency will pay them based on the following schedule:

Program (all employees)

Grade I * $150 (One-time Bonus)

Grade II * $188 (One-time Bonus)

Grade III * $225 (One-time Bonus)

Grade IV * $263 (One-time Bonus) * Or, equivalent position.

The Career Incentive Program will provide incentives to employees who are pursuing the educational track. This program will apply to employees who have exceeded the educational level required for their current position. There is also a Program A & B and the associated incentives are listed below:

Program A Completion of an accredited AA/AS degree - $200 (One-time Bonus)

Program B

Completion of an accredited BA/BS degree – 2% Completion of an accredited MA/MS degree – 2%

BUDGET/PERSONNEL COMMITTEE CONSIDER APPROVAL OF EMPLOYEE CERTIFICATION AND CAREER INCENTIVE PROGRAMS May 8, 2015 Page 3 of 3 These Incentive Programs directly tie to the Staff Tactical goal of “Succession planning to replace the current Operations Manager and Maintenance Manager” under “Maintain a highly capable and proven organizational team”. By offering these incentives, it will encourage employees to attain the higher certification and/or education levels for these management positions. With additional mentoring and training, these employees could become viable candidates for either of the two positions. In-house recruitments keep the loss of intellectual capital at a minimum which will help ensure the Agency continues to operate effectively when individuals occupying critical positions depart. It also builds moral amongst the employees because it shows that the Agency sees the value they can bring to moving the Agency towards its strategic goals. The estimated cost of implementation of the programs for FY 14/15 is approximately $27.5k and for FY 15/16, the approximate cost is $48.5k. The deadline for implementation of this program was January 1, 2015, so if the proposed program is approved by the Board of Directors, any monetary payments will be retroactive to that date. The funding for the above cost is available within the overall budget due to recent retirements and associated time lag for recruitments. RECOMMENDATION: Staff requests that the Budget and Personnel Committee recommend that the Board approve the Certification Incentive Program and Career Incentive Program. Attachment 1: Certification Incentive Program Attachment 2: Career Incentive Program

MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY

Personnel Policies and Procedures

CERTIFICATION INCENTIVE PROGRAM No. 220.3 Effective Date: June 1, 2013

Revision Date: May 2015

Page: 1 of 3

Certification Requirement

Certain personnel holding positions in the Operations, Maintenance, Laboratory, Source Control and

Engineering Departments are required to obtain certification commensurate with their position from the

State Water Resources Control Board (SWRCB), California Water Environmental Association (CWEA), or

other certifying board. Refer to the current job description for the specific certification for the positions

listed below:

Department Position

Operations Operator I-III Operations Supervisor

Operations Manager

Maintenance Electrician PM Mechanic

Maintenance Mechanic I/II Electrician/Instrumentation Technician I/II

Co-gen Mechanic I/II Instrumentation Systems Tech

Senior Maintenance Mechanic Senior Elect/Instrumentation Tech

Senior Distribution Mechanic Distribution Mechanic I/II

Plant Maintenance Supervisor Utilities Supervisor

Maintenance Manager Field Maintenance Supervisor

Laboratory Laboratory Analyst I/II Senior Analyst

Lab Supervisor

Source Control Source Control Inspector I/II Source Control Supervisor

Engineering Associate/Assistant Engineer Principal Engineer

Engineering Manager

Applicability

All employees must obtain the required level of certification before they can be promoted to any other

position for which they desire to apply, including both promotional and lateral transfers, in order to be

eligible for consideration for such promotions or lateral transfers.

Reimbursement of Costs

MRWPCA will reimburse personnel for the costs of taking certain correspondence and other types of

educational courses designed to prepare the employee for taking of the required certification exams.

MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY

Personnel Policies and Procedures

CERTIFICATION INCENTIVE PROGRAM No. 220.3 Effective Date: June 1, 2013

Revision Date: May 2015

Page: 2 of 3

Certification Incentive

Inasmuch as MRWPCA benefits by having employees with certification in their current and/or related

positions, MRWPCA would like to encourage all of its personnel to obtain such certification.

Furthermore, the early receipt of certification is also advantageous as it provides rapid development of

employee job knowledge.

With these goals in mind, the following program is provided:

1. MRWPCA will reimburse employees for the costs for taking correspondence and other types of

preparatory courses that assist in achieving the certification required by the current or most probable

future position. For more information regarding reimbursement, refer to Policy 311, Employment

Training and Development Program.

2. Reimbursement for certification and renewal fees is also allowed for programs related to the current

and/or possible future position.

3. As an incentive to accelerate the receipt of certification in the employee’s current field and in lieu of a

step increase for obtaining higher certification, the following one-time certification bonuses will be

paid for receipt of certification in their current field for each of the following certification levels:

PROGRAM A (CWEA Certification) PROGRAM A (SWRCB Certification)

Grade I * $200 Grade I * $200

Grade II * $250 Grade II * $250

* Or, equivalent position. Grade III * $300

4. As an incentive to encourage employees to acquire a certification in the employee’s current field

above what is listed in their job description, the following certification increases will be paid for

receipt of certification in their current field for each of the following certification levels:

PROGRAM B (CWEA Certification) * PROGRAM B (SWRCB Certification)*

Grade III 2% Increase Grade IV 2.5% Increase

Grade IV* 2% Increase Grade V* 3.5% Increase

*If the employee bypasses the lower grade and attains the higher grade, they will receive the

cumulative amount for both grades if they still meet the criteria.

In order to maintain and continue receiving this increase, employees are required to submit to Human

Resources 12 contact hours every two years. For more information on contact hours, please check

with Human Resources.

MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY

Personnel Policies and Procedures

CERTIFICATION INCENTIVE PROGRAM No. 220.3 Effective Date: June 1, 2013

Revision Date: May 2015

Page: 3 of 3

5. As an incentive to encourage employees to acquire knowledge in areas related to the current or future

position, the following one-time bonuses will be paid upon receipt of the following certification

levels:

PROGRAM C (all employees)

Grade I * $150

Grade II * $188

Grade III * $225

Grade IV * $263

* Or, equivalent position.

6. Certification for positions not listed above will also be considered. The level of bonus will be set

after evaluation of the program and with respect to the above specified bonuses.

7. For probationary employees, certification bonuses and related incentives will be paid upon

completion of their initial MRWPCA probationary period.

8. Only certification programs that require an exam demonstrating proficiency in a field will be

approved.

9. Employees can qualify for either the Career Incentive Program or the Certification Incentive

Program, not both. Also, if an employee qualifies for a certification bonus under CWEA Program A

or B, they will only qualify for a one-time Certification Bonus under Program C if they receive

another form of certification and vice-versa.

Ex. An Operator III receives a Grade V certification from SWRCB. An additional 6% will be added

to the base salary. If they receive a Grade IV certification from CWEA, they will receive a one-time

$263 bonus.

10. To avoid confusion as to which certification programs are authorized for bonuses and at what level,

the employee must receive prior approval of the Supervisor/Department Manager and the General

Manager or designee before starting the program.

11. If any employee's request for a certification program has been disapproved at one level, it may be

appealed through the Problem Solving Procedure set forth in the Employee Handbook.

MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY

Personnel Policies and Procedures

CAREER INCENTIVE PROGRAM No. 220.5 Effective Date: May 2015

Revision Date:

Page: 1 of 2

Applicability

All employees must obtain the required level of degree before they can be promoted to any

other position for which they desire to apply, including both promotional and lateral transfers, in

order to be eligible for consideration for such promotions or lateral transfers.

Reimbursement of Costs

MRWPCA will reimburse personnel for the costs of taking certain correspondence and other

types of educational courses related to their current or most probable future position (Reference

Policy 311, Employee Training and Development Program).

Education Incentive

Inasmuch as MRWPCA benefits by having employees with degrees in their current and/or

related positions, MRWPCA would like to encourage all of its personnel to obtain such degrees.

Furthermore, the early receipt of a degree is also advantageous as it provides rapid development

of employee job knowledge.

With these goals in mind, the following program is provided:

1. MRWPCA will reimburse employees for the costs for taking correspondence and other

types of courses that assist in achieving the degree required by the current or most probable

future position. For more information regarding reimbursement, refer to Policy 311,

Employment Training and Development Program.

2. As an incentive to accelerate the receipt of a degree in the employee’s current field and in

lieu of a step increase for obtaining higher education, the following one-time certification

bonus will be paid for receipt of a degree in their current field for the following certification

level:

PROGRAM A

Completion of an accredited AA/AS degree - $200

MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY

Personnel Policies and Procedures

CAREER INCENTIVE PROGRAM No. 220.5 Effective Date: May 2015

Revision Date:

Page: 2 of 2

3. As an incentive to encourage employees to acquire a degree in the employee’s current field

above what is listed in their job description, the following will be paid for receipt of a

degree in their current field for each of the following levels:

PROGRAM B

Completion of an accredited BA/BS degree – 2%

Completion of an accredited MA/MS degree – 2%

4. For probationary employees, bonuses and related incentives will not be paid until the

employee completes the initial MRWPCA probationary period for new employees.

5. Employees can qualify for either the Career Incentive Program or the Certification

Incentive Program, not both.

6. To avoid confusion as to which incentive programs are authorized for bonuses and at what

level, the employee must receive prior approval of the Supervisor/Department Manager and

the General Manager or designee before starting the program.

7. If any employee's request has been disapproved at one level, it may be appealed through

the Problem Solving Procedure set forth in the Employee Handbook.

Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services Water District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District,

Monterey, Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

MEMORANDUM TO: BUDGET/PERSONNEL COMMITTEE FROM: TORI HANNAH, CHIEF FINANCIAL OFFICER

(Via Keith Israel, General Manager) DATE: MAY 8, 2015 SUBJECT: CONSIDER APPROVAL OF CONTRACT FOR AUDITING

SERVICES FOR FY 14/15 ────────────────────────────────────────────────── BACKGROUND: On February 23, 2015, the Board approved issuing a Request for Proposal (RFP) for Auditing Services. The RFP was mailed to several firms that were recommended as part of an Agency-initiated California Society of Municipal Finance Officer (CSMFO) survey. Notices Inviting Proposals were also published in the Salinas Californian. The proposal deadline was April 6, 2015. DISCUSSION The Agency received proposals from 13 highly qualified firms, including a proposal from the Agency’s prior auditor, Charles Z. Fedak & Company. While all proposals were very competitive, staff selected five firms for the final interview process based on experience, staffing, audit approach, CSMFO surveys, and any distinguishing qualities. The following four firms chose to participate in the final selection process, while one firm, Brown, Armstrong, CPA’s, declined to attend the panel interview.

Firm Lance, Soll, & Lunghard, LLP

Maze & Associates

MUN CPA’s Vavrinek, Trine, Day, & Company (VTD)

Proposal (1) $33,120 $33,825 $35,900 $36,050

(1 Proposal excludes Single Audit Report, with the exception of VTD. VTD provided an all-inclusive price)

The firms were interviewed by a panel consisting of the Agency’s Chief Financial Officer, Accountant, Customer Service Supervisor, and Accounting Assistant II. In addition, reference checks were contacted on the two top recommended firms. The panel is recommending the selection of Lance, Soll, & Lunghard (LSL), LLP. LSL has been providing auditing services to local governments for over 80 years and has offices in the Silicon Valley, Orange County, and Temecula Valley. LSL offers a full complement of required audit services, along with staff guidance and support throughout the year. LSL is actively involved with many professional organizations, which include presenting information at California Society of Municipal Finance Officers chapter events, serving as technical reviewers for GFOA, retaining membership in the CalCPA Governmental Accounting and Auditing Committee, and participating in the AICPA Government Audit Quality Center. The firm received positive references from the following organizations: Orange County Water District, Three Valleys Water District, City of Emeryville, and the City of San Carlos. Staff also felt that their experience in working with the Orange County Water District could be beneficial in assisting the Agency with implementation of any accounting systems related to the proposed Groundwater Replenishment Project. FISCAL IMPACT: The audit contract for the prior two fiscal years was $33,500 annually. The proposed cost for the FY 14/15 audit is $33,120; however if the Agency chooses to renew for two additional years, the audit costs would $33,785 and $34,450, respectively. These amounts reflect the cost of the financial audit and the State Controller’s Report. Sufficient funds have been budgeted in the FY 14/15 and FY 15/16 Budgets. RECOMMENDATION: Staff requests that the Budget and Personnel Committee recommend to the Board to contract with Lance, Soll, and Lunghard for FY 2014/15 Auditing Services at an initial cost of $33,120 with the understanding that with satisfactory performance, the engagement would be renewed annually for the subsequent two to four years.