Loading...
HomeMy WebLinkAbout2024-02-22 - Board of Directors Meeting Agenda Packet AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS REGULAR MEETING Thursday, February 22, 2024, 8:30 AM 1717 E Miraloma Ave, Placentia CA 92870 1. PARTICIPATION INSTRUCTIONS This meeting will be held in person. For public convenience, the meeting can also be accessed via internet-based service or telephone as indicated below. For questions regarding participation, please call the Board Secretary at (714) 701-3020. Computer/Mobile Device: https://us06web.zoom.us/j/82647833144 Telephone: (669) 444-9171 or (669) 900-6833 Meeting ID: 826 4783 3144 2. CALL TO ORDER 3. PLEDGE OF ALLEGIANCE 4. ROLL CALL Trudi DesRoches, President Tom Lindsey, Vice President Brett R. Barbre, Director Phil Hawkins, Director Gene Hernandez, Director 5. ADDITIONS/DELETIONS TO THE AGENDA Items may be added to the agenda upon determination by a two-thirds vote of the Board, or a unanimous vote if only three Directors are present, that there is a need to take immediate action which came to the District's attention subsequent to the agenda being posted. (GC 54954.2(b)(2)) 6. AB 2449 TELECONFERENCE REQUESTS 7. PUBLIC COMMENTS Any individual wishing to address the Board (or Committee) is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Chair will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to three minutes and must be related to matters of public interest within the jurisdiction of the Water District. (GC 54954.3) 8. ACTION CALENDAR This portion of the agenda is for items where staff presentations and Board (or Committee) discussions are needed prior to formal action. 8.1. Amending Board of Directors Policies and Procedures Manual Recommendation: That the Board of Directors adopt Resolution No. 2024-XX amending Sections 4.2 (A)(3) and 4.2 (I) of the Board of Directors Policies and Procedures Manual. 9. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board (or Committee) at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking advice and counsel. Time permitting, it is generally in the District’s interest to discuss these more complex matters at one meeting and consider formal action at another meeting. This portion of the agenda may also include items for information only. Page 1 of 161 9.1. Mid-Year Review of Fiscal Year 2023-24 Budget 9.2. Goals and Objectives for Fiscal Year 2024-25 Operating and Capital Budget 9.3. Fiscal Year 2024-25 Budget Workshop #1 9.4. Communications Goals, Objectives, and Strategies 10. CLOSED SESSION The Board may hold a closed session on items related to personnel, labor relations and/or litigation. The public is excused during these discussions. 10.1. Public Employment Pursuant to Section 54957 of the California Government Code Title: General Counsel 11. REPORT FROM CLOSED SESSION 12. ADJOURNMENT 12.1. The next regular meeting is scheduled Thursday, March 14, 2024 at 8:30 a.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Non-exempt materials related to open session agenda items that are distributed to a majority of the Board of Directors (or Committee Members) less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the District’s Administrative building located at 1717 E Miraloma Ave, Placentia CA 92870 during regular business hours. When practical, these materials will also be posted on the District’s website at https://ylwd.com/. (GC 54957.5) Accommodations for the Disabled Requests for disability-related modifications or accommodations, including auxiliary aids or services, required for participation in the above-posted meeting should be directed to the Board Secretary at (714) 701-3020 at least 24 hours in advance. (GC 54954.2(a)) Page 2 of 161 ITEM NO. 8.1. AGENDA REPORT MEETING DATE: February 22, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Lori Thompson, Human Resources and Risk Manager SUBJECT: Amending Board of Directors Policies and Procedures Manual RECOMMENDATION: That the Board of Directors adopt Resolution No. 2024-XX amending Sections 4.2 (A)(3) and 4.2 (I) of the Board of Directors Policies and Procedures Manual. BACKGROUND: The Board previously reviewed, but did not adopt, labor counsel's proposed amendments to the Board's Policies and Procedures Manual, Section 4.2 (A)(3) on November 21, 2023. At that time, staff provided a summary of survey information, received from nine agencies, relative to the applicability of Harassment, Discrimination, and Retaliation Prevention (HDRP) policies to Boards of Directors. Relevant portions of the nine agency's policies, obtained through staff's survey, are included as attachments to this report. The majority of responding agencies have one HDRP policy that covers both employees and the Board, but do not have a specific procedure outlined for handling allegations of Director non-compliance. Those agencies that do have a separate procedure for such allegations refer to general provisions identified in their Board governance policies or conduct standards, similar to Section 4.2.(I) of YLWD's Board manual (admonition, sanction, censure, etc.). Based on input from the Board during the November 21, 2023 Board meeting, additional revisions to the previously proposed amendments have been made to Section 4.2 (A)(3) and Section 4.2(I). Specifically, Items (a) and (b) of Section 4.2 (A)(3) have been removed entirely, and existing language stating "These procedures shall not be effective in any case in which a non-board member seeks redress for alleged misconduct by a Board member." has been removed from Section 4.2(I). Staff recommends the Board adopt the proposed amendments to Section 4.2.(A)(3) and 4.2(I) of the Board of Directors Policies and Procedures Manual at this time. REVIEWED BY GENERAL COUNSEL: Yes STRATEGIC PLAN INITIATIVES: G5 2D - Maintain a strong District culture and ethics as described in core values. ATTACHMENTS: Page 3 of 161 ATTACHMENTS: 1. 2023 BOD Policies and Procedures Manual - Sections 4.2 (3) and 4.2 (I) - REDLINE 2. Resolution No. 2024-XX - Amending Board Policy and Procedures Manual 3. ETWD - BOD Guidelines 4. IRWD - Personnel Policies and Business Conduct 5. Mesa WD - HDRP Policy 6. MNWD - Personnel Policy 7. MWDOC - Admin Code and Personnel Manual Excerpts 8. OCWD - Personnel Manual and BOD Rules Excerpts 9. SCWD - Personnel Manual Excerpt 10. Serrano WD - HDRP Policy 11. SMWD - Personnel Rules and Ethics Policy Excerpts Page 4 of 161 Yorba Linda Water District Board of Directors' Policies and Procedures Manual 8 4.2 Code of Conduct and Ethics A.It is the policy of the District to require the highest standards of ethics from its Board members. The operation of the District requires that decisions and policy be made within the proper channels of governmental structure, that the public office not be used for personal gain, and that all individuals associated with the District remain impartial and responsible towards the public. Accordingly, it is the policy of the District that Board members shall maintain the highest standard of personal honesty and fairness in carrying out their duties. The following are requirements for ethical conduct to be followed by the Board: 1.Board members are obligated to uphold the Constitution of the United States and the Constitution of the State of California, and to uphold the laws of national, state and local governmental agencies. Board members shall comply with all applicable laws regulating their conduct, including conflicts of interest, financial disclosure and open government laws. It is the responsibility of Board members to conduct themselves both professionally and personally in a manner above reproach and to avoid the appearance of impropriety. 2.New Directors shall participate in a minimum of two hours of ethics compliance training and two hours of harassment prevention training as soon as practical, but not more than six months, from the first day of service with the District and at least once every two years thereafter. A Director who serves on more than one local agency board may satisfy this requirement by obtaining such training once every two years without regard to the number of boards on which he/she serves. The District shall provide information regarding available training on an annual basis. All Directors shall provide a copy of proof of participation in these trainings to the District. Copies of proofs of participation shall be considered public documents and shall be retained for a minimum of five years. 3.Board members in the performance of their official duties and responsibilities shall neither harass nor discriminate against any individual on the basis of their protected classification(s), the perception of any individual's protected classification(s), or because the individual associates with a person who has or is perceived to have a protected classification(s). The term “pProtected cClassification” includes race (including but not limited to, hair texture and protective styles), religion or religious creed, color, sex (including gender, gender identity, gender expression, transgender, pregnancy, childbirth, , and breastfeeding, or related medical conditions), sexual orientation (including heterosexuality, homosexuality, and bisexuality), national origin, ancestry, citizenship status, marital status, age (40 or over), medical condition, genetic characteristics or information, military or veteran status, and physical or mental disability (whether perceived or actual), reproductive health decision-making, and any other basis protected by law. No Board member shall grant any unfair or inappropriate consideration, treatment, or advantage to any individual or group beyond that which is available to others or groups with the same circumstances. No Board member shall retaliate against any individual because the individual engaged in protected activity. The term “protected activity” includes, but is not limited to (a) making a request for Page 5 of 161 Yorba Linda Water District Board of Directors' Policies and Procedures Manual 9 accommodation for a disability; (b) making a request for accommodation for religious beliefs; (c) making a complaint against a Board member; (d), opposing violations of this manual; or (e) participating in any investigation or procedures undertaken pursuant to this manual. a.Any Board member who receives a complaint/report regarding harassment, discrimination, or retaliation shall immediately report it to the General Manager. The General Manager, in consultation with legal counsel, will determine what level of investigation and response is necessary. b.If a Board member is the subject of a complaint, the General Manager and District Counsel will hire an outside investigator, as appropriate, to investigate the complaint. The investigation shall be conducted in a way that ensures, to the extent feasible, the privacy of the parties involved. i.The investigation will typically include interviews with the reporting individual, the accused, and any other person who is believed to have relevant knowledge concerning the allegations. Any Board member who is identified as a subject or witness in the investigation must cooperate with the investigator, including by submitting to an interview. Any Board members interviewed by the investigator shall not discuss the interview with any individuals or District employees. Any retaliation by a Board member against the reporting individual or any individuals who participate in the investigation is prohibited. ii.The investigator shall submit a written report to the General Manager and District Counsel. The General Manager and/or District Counsel will consult with the Board members who are not a subject of the investigation about the results of the investigation and any remedial action, if necessary, designed to end any violations of this manual. Any Board member found to have discriminated, harassed, or retaliated against any individual may be subject to appropriate sanction or censure as determined by the Board members who are not a subject of the investigation. iii.The District will take reasonable steps to protect the reporting party from further harassment, discrimination, and/or retaliation. iv.The investigation report is attorney work-product and attorney-client privileged and the Board members who are not a subject of the investigation will not waive the privileges and disclose the investigation report except as it deems necessary to support a disciplinary action, to take remedial action, to defend itself in adversarial proceedings, or to comply with the law or a court order. At the conclusion of the investigation, the General Manager and/or District Counsel Page 6 of 161 Yorba Linda Water District Board of Directors' Policies and Procedures Manual 10 3.v. will notify the appropriate persons of the disposition of the investigation. Subsection A.3. is based primarily on the Harassment, Discrimination, and Retaliation Prevention Policy (POL-7010- 005) which applies to District employees and others. Accordingly, the General Manager and District Counsel may rely on language in that Policy, which does not conflict with Subsection A.3., to implement Subsection A.3. (Title VII of the Civil Rights Act [42 USC § 2000e et seq.]; Age Discrimination in Employment Act [29 USC § 623 et seq.]; Americans with Disabilities Act [42 USC § 12101]; Equal Pay Act [29 USC § 206(d)]; Fair Employment and Housing Act [GC § 12940 et. seq.]; 2 CCR § 11023 et seq.; Equal Employment Opportunity Commission, Checklist For Employers [available at https://www.eeoc.gov/checklists-and-chart-risk-factors-employers]) 4.Except where specifically authorized by the General Manager in the public interest, no Board member shall knowingly use or permit the use of District- owned vehicles, equipment, telephones, materials or property, nor require a District employee to perform services for personal convenience or profit. Board members shall safeguard the District’s property, equipment, moneys, and assets against unauthorized use or removal, as well as from loss due to criminal act or breach of trust. 5.Board members shall not disclose information that legally qualifies as confidential to unauthorized individuals without approval from a majority vote of the Board and consultation with legal counsel. This includes information that (1) has been received during a Closed Session; (2) is protected from disclosure under the attorney/client or other evidentiary privilege; or (3) is not required to be disclosed under the California Public Records Act. A Board member may make a confidential inquiry or complaint to a district attorney or grand jury concerning a perceived violation of law, including disclosing facts to a district attorney or grand jury necessary to establish the alleged illegality of a District action. Prior to disclosing confidential information, however, a Board member shall first bring the matter to the attention of either the President or the full Board. 6.Board members shall avoid conflicts, or perceived conflicts of interest in connection with District decisions and activities. a.A Board member shall not have a financial interest in a contract with the District, which includes the purchase or sale of goods and services. The Board shall not authorize any District contract if a Board member is financially interested in the contract. b.A Board member shall not participate in the discussion, deliberation or vote on a matter before the Board, or attempt to influence a decision of the Board, if the Board member has a financial interest, which is prohibited under California law. If a Board member believes that he/she may be disqualified from participation in the discussion, Page 7 of 161 Yorba Linda Water District Board of Directors' Policies and Procedures Manual 13 employee; (4) use of a District office or position or of District resources for personal gain; or (5) a conflict of interest of a Board member or employee. G.Directors are not subject to the District’s Conflict of Interest Codes, but are subject to the disclosure requirements of the Political Reform Act. Directors are required to file a Statement of Economic Interests (Form 700) with the County when assuming office, on an annual basis thereafter, and when leaving office. Filing of these forms shall be performed using the County’s e-file system. H.Directors appointed to other agency’s boards (e.g. OCSD or ACWA-JPIA) shall be required to file Form 700’s in accordance with that respective agency’s Conflict of Interest Codes. I.The following procedures shall be followed when any member of the Board reasonably believes that another member of the Board has engaged in alleged misconduct or has failed to act in the best interests of the District. These procedures shall not be effective in any case in which a non-board member seeks redress for alleged misconduct by a Board member. While the Board has discretion in deciding the actions it may choose to take in response to a complaint, this section provides definitions and procedures related to three types of actions: admonition, sanction and censure. 1.Admonition is the least severe form of action. An admonition may typically be directed to all members of the Board, reminding them that a particular type of behavior is not in the best interests of the District, and that, if it occurs or is found to have occurred, could cause a member to be subject to sanction or censure. An admonition may be issued in response to a particular alleged action or actions, although it will not necessarily have to be triggered by a complaint of misconduct. An admonition may be issued by the Board prior to any findings of fact regarding any complaint, and because it is a warning or reminder, will not necessarily require an investigation. 2.Sanction is the next most severe form of action. Sanction shall be directed to an individual member of the Board based on a particular action (or set of actions) that is determined to be misconduct but is considered by the Board not to be sufficiently serious to require censure. A sanction may be based upon the Board’s review and consideration of a complaint. A sanction may be issued by the Board, and because it is not punishment or discipline, will not necessarily require an investigation. 3.Censure is the most severe form of action. Censure is a formal statement of the Board officially reprimanding one of its members. It is a punitive action, which serves as a penalty imposed for misconduct, but it carries no fine or suspension of the rights of the member as an elected official. It can however, include such actions as the disapproval of expense reimbursement requests, de-authorization of attendance at conferences, seminars and other activities at District expense, removal of the member from Board committee, agency and intergovernmental meeting assignments, and other such remedies as may be deemed appropriate by the Board. Censure shall only be used for cases in which the Board determines that the misconduct is a serious offense. In order to protect the overriding principle of freedom of speech, the Board shall not impose Page 8 of 161 Yorba Linda Water District Board of Directors' Policies and Procedures Manual 14 censure on any of its members for the exercise of his/her First Amendment rights, no matter how distasteful the expression was to the Board or the District. However, nothing herein shall be construed to prohibit the Board from collectively condemning and expressing their strong disapprobation of such remarks. Before the imposition of a censure, the Director accused of a violation shall be entitled to written notice of the allegation, the right to provide a written response to the allegation, and an opportunity to respond in writing as to the results of an investigation. J.All complaints shall be submitted in writing to the General Manager and/or the District’s legal counsel for review and determination as to whether there is sufficient basis for further action. Complaints that specifically seek admonition, sanction or censure as a specific remedy shall be treated as a request for that remedy. Once a complaint has been filed, the General Manager, in conjunction with legal counsel, shall bring the matter before the Board. The Director named in a complaint shall be given an opportunity to respond to the complaint in writing. If the Board determines, in consultation with legal counsel, that an investigation is warranted, the Board shall initiate an investigation by the appropriate investigator, entity or authority, as determined in the reasonable discretion of the Board. In the event of such an investigation, a report of the findings of said investigation, along with the accused Director’s written response to the report, shall be presented to the board for majority action. If there is no merit, the matter shall be disposed of with no further action. When the Board decides, based upon findings and the accused Director’s defense, that a violation has occurred, it may choose to impose one of the above listed internal remedies. Any action taken by the Board to impose a sanction or censure, shall be taken by way of written resolution. K.At any point during any of these processes, the Board may refer the matter, as appropriate, to the Orange County District Attorney or other proper authorities for possible investigation, enforcement or prosecution. Prior to or following such referral, the Board may also proceed with any of the actions described in this section. Page 9 of 161 Resolution No. 2024-XX Amending Board Policies and Procedures Manual 1 RESOLUTION NO. 2024-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT AMENDING SECTIONS 4.2(A)(3) AND 4.2(I) OF THE BOARD OF DIRECTORS POLICIES AND PROCEDURES MANUAL WHEREAS,the Board of Directors of the Yorba Linda Water District routinely reviews and makes revisions to their Policies and Procedures Manual (Manual); and WHEREAS,the Board of Directors desires to further amend this Manual to incorporate and clarify certain topics. NOW THEREFORE BE IT RESOLVED by the Board of Directors of the Yorba Linda Water District as follows: SECTION 1.That Sections 4.2.(A)(3) and 4.2(I) of the Board of Directors Policies and Procedures Manual be amended effective immediately to read as follows: 4.2(A)(3) Board members shall neither harass nor discriminate against any individual on the basis of their protected classification(s), the perception of any individual's protected classification(s), or because the individual associates with a person who has or is perceived to have a protected classification(s). The term “protected classification” includes race (including but not limited to, hair texture and protective styles), religion or religious creed, color, sex (including gender, gender identity, gender expression, transgender, pregnancy, childbirth, breastfeeding, or related medical conditions), sexual orientation (including heterosexuality, homosexuality, and bisexuality), national origin, ancestry, citizenship status, marital status, age (40 or over), medical condition, genetic characteristics or information, military or veteran status, physical or mental disability (whether perceived or actual), reproductive health decision-making, and any other basis protected by law. No Board member shall grant any unfair or inappropriate consideration, treatment, or advantage to any individual or group beyond that which is available to others or groups with the same circumstances. No Board member shall retaliate against any individual because the individual engaged in protected activity. The term “protected activity” includes, but is not limited to (a) making a request for accommodation for a disability; (b) Page 10 of 161 Resolution No. 2024-XX Amending Board Policies and Procedures Manual 2 making a request for accommodation for religious beliefs; (c) making a complaint against a Board member; (d), opposing violations of this manual; or (e) participating in any investigation or procedures undertaken pursuant to this manual. (Title VII of the Civil Rights Act [42 USC § 2000e et seq.]; Age Discrimination in Employment Act [29 USC § 623 et seq.]; Americans with Disabilities Act [42 USC § 12101]; Equal Pay Act [29 USC § 206(d)]; Fair Employment and Housing Act [GC § 12940 et. seq.]; 2 CCR § 11023 et seq.; Equal Employment Opportunity Commission, Checklist For Employers [available at https://www.eeoc.gov/checklists- and-chart-risk-factors-employers]) 4.2(I) The following procedures shall be followed when any member of the Board reasonably believes that another member of the Board has engaged in alleged misconduct or has failed to act in the best interests of the District. While the Board has discretion in deciding the actions it may choose to take in response to a complaint, this section provides definitions and procedures related to three types of actions: admonition, sanction, and censure. 1.Admonition is the least severe form of action. An admonition may typically be directed to all members of the Board, reminding them that a particular type of behavior is not in the best interests of the District, and that, if it occurs or is found to have occurred, could cause a member to be subject to sanction or censure. An admonition may be issued in response to a particular alleged action or actions, although it will not necessarily have to be triggered by a complaint of misconduct. An admonition may be issued by the Board prior to any findings of fact regarding any complaint, and because it is a warning or reminder, will not necessarily require an investigation. 2.Sanction is the next most severe form of action. Sanction shall be directed to an individual member of the Board based on a particular action (or set of actions) that is determined to be misconduct but is considered by the Board not to be sufficiently serious to require censure. A sanction may be based upon the Board’s review and Page 11 of 161 Resolution No. 2024-XX Amending Board Policies and Procedures Manual 3 consideration of a complaint. A sanction may be issued by the Board, and because it is not punishment or discipline, will not necessarily require an investigation. 3.Censure is the most severe form of action. Censure is a formal statement of the Board officially reprimanding one of its members. It is a punitive action, which serves as a penalty imposed for misconduct, but it carries no fine or suspension of the rights of the member as an elected official. It can however, include such actions as the disapproval of expense reimbursement requests, de- authorization of attendance at conferences, seminars, and other activities at District expense, removal of the member from Board committee, agency, and intergovernmental meeting assignments, and other such remedies as may be deemed appropriate by the Board. Censure shall only be used for cases in which the Board determines that the misconduct is a serious offense. In order to protect the overriding principle of freedom of speech, the Board shall not impose censure on any of its members for the exercise of his/her First Amendment rights, no matter how distasteful the expression was to the Board or the District. However, nothing herein shall be construed to prohibit the Board from collectively condemning and expressing their strong disapprobation of such remarks. Before the imposition of a censure, the Director accused of a violation shall be entitled to written notice of the allegation, the right to provide a written response to the allegation, and an opportunity to respond in writing as to the results of an investigation. PASSED AND ADOPTED this 22nd day of February 2024 by the following called vote: AYES: NOES: ABSTAIN: ABSENT: Trudi DesRoches, President Yorba Linda Water District Page 12 of 161 Resolution No. 2024-XX Amending Board Policies and Procedures Manual 4 ATTEST: Bree Jozwiak, Assistant Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Gagen Law LLP Page 13 of 161 -82- Prepared by: Staff EL TORO WATER DISTRICT POLICY STATEMENT 2006-21 (IV) GUIDELINES FOR BOARD CONDUCT Page 1 of 6 Item 21 Section IV Approved by: Board of Directors Date:09/28/06 Revision New All elected or appointed officials of the El Toro Water District should be dedicated to the highest ideals of integrity and accountability to continue to earn the trust, confidence and support of the public they serve. PURPOSE AND SCOPE The policy of the El Toro Water District is to maintain the highest ethical standards for its Board members. The proper operation of the District requires decisions and policy to be made within the proper channels of governmental structure, that public office not be used for personal gain, and that board members remain objective and responsive to the needs of the public they serve. Accordingly, it is the policy of the District that Board members and District employees will maintain the highest standard of personal honesty and fairness in carrying out their duties. This policy sets forth the basic ethical standards to be followed by the Board of Directors of the El Toro Water District. The objectives of this policy are to (1) provide guidance for dealing with ethical issues, (2) heighten awareness of ethics and values as critical elements in Board members’ conduct, and (3) improve ethical decision-making and values-based management. RESPONSIBILITIES OF PUBLIC OFFICE Board members are obligated to uphold the Constitution of the United States and the Constitution of the State of California. Board members will comply with applicable laws regulating their conduct, including conflict of interest, financial disclosure and open government laws. Board members will strive to work in cooperation with other public officials unless prohibited from so doing by law or officially recognized confidentiality of their work. The members of the Board of Directors, and persons elected but who have not yet assumed office as members of the Board, will fully comply with the provisions of the State’s open meeting law for public agencies (the Brown Act). Approved by Resolution No. 06-9-1 Date: Sept. 28, 2006 “Exhibit B” Page 14 of 161 -83- Prepared by: Staff EL TORO WATER DISTRICT POLICY STATEMENT 2006-21 (IV) GUIDELINES FOR BOARD CONDUCT Page 2 of 6 Item 21 Section IV Approved by: Board of Directors Date:09/28/06 Revision New FAIR AND EQUAL TREATMENT Board members, in the performance of their official duties and responsibilities, will not discriminate against or harass any person on the basis of race, religion, color, creed, age, marital status, national origin, ancestry, gender, sexual orientation, medical condition or disability. A Board member will not grant any special consideration, treatment or advantage to any person or group beyond that which is available to every other person or group in similar circumstances. PROPER USE AND SAFEGUARDING OF DISTRICT PROPERTY AND RESOURCES Except as specifically authorized, a Board member will not use or permit the use of District- owned vehicles, equipment, telephones, materials or property for personal benefit or profit. A Board member will not ask or require a District employee to perform services for the personal benefit or profit of a Board member or employee. Each Board member must protect and properly use any District asset within his or her control, including information recorded on paper or in electronic form. Board members will safeguard District property, equipment, moneys and assets against unauthorized use or removal, as well as from loss due to criminal act or breach of trust. USE OF CONFIDENTIAL INFORMATION A Director is not authorized, without approval of the Board of Directors, to disclose information that qualifies as confidential information under applicable provisions of law to a person not authorized to receive it, that (1) has been received for, or during, a closed session meeting of the Board, (2) is protected from disclosure under the attorney/client or other evidentiary privilege, or (3) is not required to be disclosed under the California Public Records Act. This section does not prohibit any of the following: (1) making a confidential inquiry or complaint to a district attorney or grand jury concerning a perceived violation of law, including disclosing facts to a district attorney or grand jury that are necessary to establish the alleged illegality of an action taken by the District, an elected official or employee, (2) expressing an opinion concerning the propriety or legality of actions taken by the District in closed session, including disclosure of the nature and extent of the allegedly illegal action, or (3) disclosing information acquired by being present in a closed session that is not confidential information. Prior to disclosing confidential information pursuant to (1) or (2), above, however, a Board member will first bring the matter to the attention of either the Page 15 of 161 -84- Prepared by: Staff EL TORO WATER DISTRICT POLICY STATEMENT 2006-21 (IV) GUIDELINES FOR BOARD CONDUCT Page 3 of 6 Item 21 Section IV Approved by: Board of Directors Date:09/28/06 Revision New President of the Board or the full Board, to provide the Board an opportunity to cure an alleged violation. A Director who willfully and knowingly discloses for pecuniary gain confidential information received by him or her in the course of his or her official duties may be guilty of a misdemeanor under Government Code Section 1098. CONFLICT OF INTEREST A Board member will not have a financial interest in a contract with the District or be a purchaser at a sale by the District or a vendor at a purchase made by the District, unless the Board member’s participation was authorized under Government Code Sections 1091 or 1091.5, or other provisions of law. A Board member will not participate in the discussion, deliberation or vote on a matter before the Board of Directors, or in any way attempt to use his or her official position to influence a decision of the Board, if he or she has a prohibited interest with respect to the matter, as defined in the Political Reform Act, Government Code Sections 81000, and following, relating to conflicts of interest. Generally, a Director has a financial interest in a matter if it is reasonable foreseeable that the Board decision would have a material financial effect (as defined by Fair Political Practices Commission (FPPC) regulations) that is distinguishable from the effect on the public generally on (a) a business entity in which the Director has direct or indirect investment in the amount specified in FPPC regulations; (b) real property in which the Director has a direct or indirect investment interest, with a worth in the amount specified in FPPC regulations; (c) a source of income of the Director in the amount specified in FPPC regulations, within 12 months before the Board decision; (d) a source of gifts to the Director in an amount specified in FPPC regulations within 12 months before the Board decision; or (e) a business entity in which the Director holds a position as a director, trustee, officer, partner, manager or employee. An “indirect interest” means any investment or interest owned by the spouse or dependent child of the Director, by an agent on behalf of the Director, or by a business entity or trust in which the Director, or the Director’s spouse, dependent child or agent, owns directly, indirectly or beneficially a 10 percent interest or greater. An elected official will not accept honoraria, or gifts that exceed the limitations specified in the Fair Political Practices Act or FPPC regulations. Board members will report all gifts, campaign contributions, income and financial information as required under the District’s Conflict of Interest Code and the provisions of the Fair Political Practices Act and FPPC regulations. (Government Code Sections 87100 and following.) Page 16 of 161 -85- Prepared by: Staff EL TORO WATER DISTRICT POLICY STATEMENT 2006-21 (IV) GUIDELINES FOR BOARD CONDUCT Page 4 of 6 Item 21 Section IV Approved by: Board of Directors Date:09/28/06 Revision New If a member of the Board believes that he or she may be disqualified from participation in the discussion, deliberations or vote on a particular matter due to a conflict of interest, the following procedure will be followed: (a) if the Director becomes aware of the potential conflict of interest before the Board meeting at which the matter will be discussed or acted on, the Director will notify the District’s General Manager and the District’s legal counsel of the potential conflict of interest, so that a determination can be made whether it is a disqualifying conflict of interest; (b) if it is not possible for the Director to discuss the potential conflict with the General Manager and the District’s legal counsel before the meeting, or if the Director does not become aware of the potential conflict until during the meeting, the Director will immediately disclose the potential conflict during the Board meeting, so that there can be a determination whether it is a disqualifying conflict of interest; and (c) upon a determination that there is a disqualifying conflict of interest, the Director (1) will not participate in the discussion, deliberation or vote on the matter for which a conflict of interest exists, which will be so noted in the Board minutes, and (2) leave the room until after the discussion, vote and any other disposition of the matter is concluded, unless the matter has been placed on the portion of the agenda reserved for uncontested matters. The Director may speak on an uncontested matter during the time the general public speaks on the issue. A Board member will not recommend the employment of a relative by the District. A Board member will not recommend the employment of a relative to any person known by the Board member to be bidding for or negotiating a contract with the District. A Board member who knowingly asks for, accepts or agrees to receive any gift, reward or promise thereof for doing an official act, except as may be authorized by law, may be guilty of a misdemeanor under Penal Code Section 70. SOLICITING POLITICAL CONTRIBUTIONS Board members are prohibited from soliciting political funds or contributions at District facilities, or from District employees. A Board member will not accept, solicit or direct a political contribution from (a) District employees, officers, consultants or contracts, and (b) vendors and consultants who have a material financial interest in a contract or other matter while that contract or other matter is pending before the District. A Director will not use the District seal, trademark, stationery or other indicia of the District identity, or facsimile thereof, in any solicitation for political contributions contrary to state or federal laws. Page 17 of 161 -86- Prepared by: Staff EL TORO WATER DISTRICT POLICY STATEMENT 2006-21 (IV) GUIDELINES FOR BOARD CONDUCT Page 5 of 6 Item 21 Section IV Approved by: Board of Directors Date:09/28/06 Revision New INCOMPATIBLE OFFICES Any Board member appointed or elected to a public office of another public entity, the duties of which may require action contradictory or inconsistent with the interests of the first entity, will resign from the former office. IMPROPER ACTIVITIES AND THE REPORTING OF SUCH ACTIVITIES; PROTECTION OF “WHISTLE BLOWERS” The General Manager has primary responsibility for (1) ensuring compliance with the District Personnel Manual, and ensuring that District employees do not engage in improper activities, (2) investigating allegations of improper activities, and (3) taking appropriate corrective and disciplinary actions. The Board has a duty to ensure that the General Manager is operating the District according to law and the policies approved by the Board. Board members are encouraged to fulfill their obligation to the public and the District by disclosing to the General Manager to the extent not expressly prohibited by law, improper activities within their knowledge. Board members will not interfere with the General Manager’s responsibilities in identifying, investigating and correcting improper activities, unless the Board determines that the General Manager is not properly carrying out these responsibilities. A Board member will not directly or indirectly use or attempt to use the authority or influence of his or her position for the purpose of intimidating, threatening, coercing, commanding or influencing any other person for the purpose of preventing such person from acting in good faith or report or otherwise bring to the attention of the General Manager or the Board any information that, if true, would constitute: a work-related violation by a Board member or District employee of any law or regulation, gross waste of District funds, gross abuse of authority, a specified and substantial danger to public health or safety due to an act or omission of a District official or employee, use of a District office or position or of District resources for personal gain, or a conflict of interest of a District Board member or District employee. A Board member will not use or threaten to use any official authority or influence to effect any action as a reprisal against a District Board member or District employee who reports or otherwise brings to the attention of the General Manager any information regarding the subjects described in this section. Page 18 of 161 -87- Prepared by: Staff EL TORO WATER DISTRICT POLICY STATEMENT 2006-21 (IV) GUIDELINES FOR BOARD CONDUCT Page 6 of 6 Item 21 Section IV Approved by: Board of Directors Date:09/28/06 Revision New COMPLIANCE WITH THE BROWN ACT The members of the Board of Directors, and persons elected but who have not yet assumed office as members of the Board, will fully comply with the provisions of the State’s open meeting law for public agencies (the Brown Act). CANDIDATE’S STATEMENT A Board member will not include false or misleading information in a candidate’s statement for a general District election filed pursuant to Section 13307 of the Elections Code. VIOLATION OF POLICY A perceived violation of this policy by a Board member should be referred to the President of the Board of the full Board of Directors for investigation, and consideration of any appropriate action warranted. A violation of this policy may be addressed by the use of such remedies as are available by law to the District, including but not limited to: (a) adoption of a resolution expressing disapproval of the conduct of the Board member who has violated this policy, (b) injunctive relief, or (c) referral of the violation to the District Attorney and/or the Grand Jury. Page 19 of 161 -88- Prepared by: Staff EL TORO WATER DISTRICT POLICY STATEMENT 2006-21 (IV) GUIDELINES FOR BOARD CONDUCT Page of Item Section Approved by: Board of Directors Date: Revision New Page 20 of 161 48-1 IRVINE RANCH WATER DISTRICT PERSONNEL POLICIES AND PROCEDURES MANUAL POLICY NO. 48 – BUSINESS CONDUCT STANDARDS 1. General Policy The Irvine Ranch Water District is committed to upholding the highest ethical standards in all business and professional operations and relationships. All employees and public officials must carry out the mission of the District with the highest level of business ethics and integrity in order to create and maintain credibility and ensure the public trust. 2. Purpose of Policy This policy sets forth the minimum ethical standards to be followed by the District’s employees and public officials. The objective of this policy is to heighten awareness of ethics and values, provide guidance for dealing with ethical issues, and improve ethical decision-making. For the purposes of this policy, “Employee” means any full-time, part-time, regular, temporary or contracted staff employed by the District. “Public official” means any publicly elected Board of Director or Board-appointed Committee Member or any other non-employee who acts as a representative of the District. 3. Standards of Behavior A. General Employee and Public Official Responsibilities The proper operation of the District requires that decisions and policies be made in the proper channels of governmental structure, that the employment relationship or holding of a public office not be used for personal gain, and that all individuals associated with the District remain impartial and act responsibly toward the public. It is the policy of the District that employees and public officials maintain the highest standard of personal honesty and fairness in carrying out their duties and abide by all applicable laws and District policies regulating their conduct. District employees and public officials have a special relationship of trust with the public. In the arena of public trust, perception is reality. Employees and public officials must work to avoid any appearance of impropriety that will erode the public trust. B. Employee Responsibilities It is the District’s goal that employees, customers, and the public in general, be treated fairly and with respect. Individually, every District employee is responsible for using good judgement and discretion in his or her business and personal conduct while at work or representing the District outside of the work environment. Employees are expected to treat each other, District customers, and Irvine Ranch Water District Page 21 of 161 POLICY NO. 48 – BUSINESS STANDARDS 48-2 the public with courtesy and professionalism at all times. Employees are required to abide by all District policies. C. Public Officials Responsibilities 1. Proper Use and Safeguarding of District Property and Resources Except as specifically authorized, a public official will not use or permit the use of District-owned vehicles, equipment, telephones, materials or property for personal convenience or profit or require a District employee to perform services for personal convenience or profit. 2. Use of Confidential Information A public official may not disclose confidential information that has been received for or during a closed session meeting or that is protected by attorney/client privilege unless authorized by the Board of Directors or required under the California Public Records Act. 3. Soliciting Political Contributions Public officials are prohibited from soliciting political funds or contributions at District facilities or from District employees. A public official will not accept, solicit or direct a political contribution from District vendors or consultants who have a material financial interest in a contract or other matter while that contract or other matter is pending before the District. A public official will not use the District’s identity in any solicitation for political contributions contrary to state or federal law. 4. Board-General Manager Relationship The Board of Directors sets the policy for the District. The General Manager has full charge and control of the construction, maintenance and operation of the operating and other systems of the District, including the power and authority to employ and discharge employees, to prescribe the duties of employees, and to fix and alter the compensation of employees, consistent with Board-approved District policies and the provisions of law. The General Manager serves at the pleasure of the Board. The Board provides policy direction and instructions to the General Manager on matters within the authority of the Board during duly-convened Board and Committee meetings. Board members will deal with matters within the authority of the General Manager through the General Manager and not through other employees. Board members may request non-confidential, factual information regarding District operations from District employees. Board members shall not make requests directly to District employees to undertake analyses, perform other work assignments or change the priority of work assignments. Irvine Ranch Water District Page 22 of 161 POLICY NO. 48 – BUSINESS STANDARDS 48-3 5. Incompatible Offices Public officials appointed, elected, or employed in a public office or by another public entity or organization, the duties of which may require action contradictory or inconsistent with the Board action, will recuse themselves from participating in any discussion and/or actions related to a specific item or will resign from the conflicting position or the IRWD Board of Directors. 6. Public Officials Compensation and Expense Reimbursement a. Public officials will be compensated at the rate determined by the Board consistent with applicable statutes and approval by the Board for attendance at Board meetings, Committee meetings and for travel days to and from any conference, meeting or other event where service is rendered as a public official. Such compensation will not be paid for more than a total of ten days in any calendar month. Such compensation will be provided in addition to any reimbursement for meals, lodging and travel expenses incurred in attending any conference, meeting or approved event. b. All travel and conference expenses must comply with the Business Expense Reimbursement, Travel, Meeting Compensation and Representation policy, which can be found at s:\District Policies\Finance\Expense Policy.doc. 4. Reporting Suspected Improper Activities A. Violation of the Business Conduct Standards Policy A perceived violation of this policy by an employee should be reported to the General Manager for investigation. A perceived violation of this policy by a public official should be referred to the President of the Board or to the full Board for investigation. No employee or public official will use or attempt to use any position or official authority or influence for the purpose of preventing any person from acting in good faith to report any suspected violation of any District policy. B. Protection of “Whistle-Blowers” No employee or public official will use or threaten to use any position or official authority or influence to effect any action as a reprisal against an employee or public official who reports any information regarding suspected violations of the District’s Business Conduct Standards or other related policies. Irvine Ranch Water District Page 23 of 161 POLICY NO. 48 – BUSINESS STANDARDS 48-4 5. Related Policies The District has several policies that address various subjects involving business ethics and conduct. Employees and elected officials should make sure they are familiar with and comply with the ethical components of all District policies including but not limited to: A. General Policies/EEO Commitment (Policy 2) B. Violence in the Workplace Policy (Policy 4) C. Hiring Policy (Policy 6) D. Honesty and Integrity Policy (Policy 28) E. Harassment Policy (Policy 29) F. Americans with Disabilities Act Policy (Policy 40) G. Conflict of Interest Policy (Policy 45) H. Sensitive and Non-Public Information Policy (Policy 47) I. Business Expense Reimbursement, Travel, Meeting Compensation and Representation Policy (Finance Policy) APPROVED: ________________________________ December 15, 2003 Director of Human Resources Date ________________________________ December 15, 2003 General Manager Date Irvine Ranch Water District Page 24 of 161 29-1 IRVINE RANCH WATER DISTRICT PERSONNEL POLICIES AND PROCEDURES POLICY NO. 29 – PREVENTION AND CORRECTION OF HARASSMENT, DISCRIMINATION, RETALIATION, AND ABUSIVE CONDUCT 1. General Policy The District is committed to providing a work environment that is free of discrimination, harassment, and retaliation. In keeping with this commitment, the District maintains a strict policy prohibiting harassment, including sexual harassment and takes reasonable steps to promptly correct discriminatory, harassing, and retaliatory conduct. This policy prohibits harassment in any form, including verbal, physical and visual harassment by or against any employee, intern, volunteer, applicant for employment, or vendor, or guest. This policy applies to all of the District's activities, wages, reviews, leaves, training, benefits, and all other conditions and terms of employment. As a general guideline, harassment can be avoided if employees act professionally and treat each other with respect. 2. Purpose of Policy Federal and state law expressly prohibit discrimination and harassment of employees or applicants based upon race, color, national origin, religious creed, ancestry, physical or mental disability, medical condition, pregnancy, childbirth or related medical condition, age (40 and over), sexual orientation, sex, gender identity, gender expression, genetic information, military or veteran status, marital status, or any other basis protected by applicable state or federal law, including association with individuals with these protected characteristics or perception that an individual has one or more of these protected characteristics. The purpose of this policy is to establish a means to protect employees, applicants for employment, or guests from harassment. Additionally, this policy enforces the District's long-standing policy that all employees, applicants for employment, and guests should be able to enjoy a work environment that is free from all forms of unlawful discrimination or harassment. Discrimination, harassment, and retaliation constitute misconduct that can decrease work productivity, decrease morale and cause emotional and physical damage. Incidents of discrimination, harassment, or retaliation can result in serious economic implications such as high turnover, ineffective use of time during working hours, costly salaries paid for nonproductive work hours, and employee absences due to hearings and meetings related to discrimination, harassment, and retaliation complaints. The further purpose of this Policy is to define and forbid discriminatory, harassing, and retaliatory conduct, to prohibit the condoning or perpetuating of such conduct, and to provide an efficient means for reporting and resolving complaints of discrimination, harassment, or retaliation against any individual who reports discrimination, harassment, or retaliation or who participates in an investigation of such reports. Irvine Ranch Water District Page 25 of 161 POLICY NO. 29 – PREVENTION AND CORRECTION OF HARASSMENT, DISCRIMINATION, RETALIATION, AND ABUSIVE CONDUCT 29-2 3. Definition of Terms A. Employee Any individual under the direction and control of the District under any appointment or contract of hire or apprenticeship, express or implied, oral or written. For purposes of this Policy, the term “employee” includes any individual who is an unpaid intern or volunteer of the District. The inclusion of any individual, including but not limited to unpaid interns and volunteers, in the definition of “employee” for purposes of this policy should not be interpreted to affect the applicability of any other policy or procedure of the District. B. Legally Protected Category/Legally Protected Characteristic Race, color, national origin, ancestry, religious creed, sex, sexual orientation, gender identity, gender expression, marital status, religion, age (over 40), physical or mental disability, medical condition, pregnancy, childbirth or related medical condition, physical or mental disability, medical condition, age (40 and over), genetic characteristics or information, military or veteran status, or any other protected basis under state or federal law, including association with individuals with these protected characteristics or perception that an individual has one or more of these protected characteristics. C. Discrimination Discrimination is any action or conduct by which an employee is treated differently or less favorably than other employees similarly because the employee is a member of a Legally Protected Category. D. Harassment Harassment is any verbal, visual, or physical conduct based on an employee’s membership in a Legally Protected Category that creates an intimidating, hostile or otherwise offensive working environment. Such conduct constitutes harassment when: 1. Submission to the conduct is made either an explicit or implicit condition of employment; 2. Submission to or rejection of the conduct is used as the basis for an employment decision; or 3. The conduct unreasonably interferes with an employee’s work performance by altering the work conditions so that a reasonable person my find it more difficult to do the job, or creates an intimidating, hostile or offensive work environment. Harassing conduct can take many forms and includes, but is not limited to, slurs, jokes, statements, gestures, pictures, computer images, or cartoons regarding an employee’s Legally Protected Characteristic. Irvine Ranch Water District Page 26 of 161 POLICY NO. 29 – PREVENTION AND CORRECTION OF HARASSMENT, DISCRIMINATION, RETALIATION, AND ABUSIVE CONDUCT 29-3 Harassment on the job is prohibited whether it involves co-worker harassment, harassment by a supervisor or manager, or harassment by third parties doing business with or for the District. E. Sexual Harassment Unwelcome sexual advances, requests for sexual favors, or visual, verbal, or physical conduct of a sexual nature all may constitute sexual harassment when: (1) submission to such conduct is made a term or condition of employment; or (2) submission to or rejection of such conduct is used as basis for employment decisions affecting the individual; or (3) such conduct has the purpose or effect of unreasonably interfering with an employee’s work performance by altering the work conditions so that a reasonable person may find it more difficult to do the job, or creating an intimidating, hostile or offensive working environment. This definition includes potential forms of offensive behavior, such as the following: 1. Unwanted sexual advances. 2. Visual conduct, such as leering, making sexual gestures, displaying of sexually explicit jokes, derogatory images, and comments about an employee’s body or dress. 3. Verbal sexual advances or propositions. 4. Verbal abuse of a sexual nature, graphic verbal commentary about an individual’s body, sexually degrading words to describe an individual, suggestive or obscene letters, notes, or invitations. 5. Physical conduct, such as touching, assault, impeding, or blocking movements. 6. Retaliation for reporting harassment or threatening to report harassment. Sexual harassment includes many forms of offensive behavior and may include harassment of a person of the same or opposite sex as the harasser. Sexual harassment need not be motivated by sexual desire. Sexual harassment on the job is prohibited whether it involves co-worker harassment, harassment by a supervisor or manager, harassment by a subordinate, or harassment by third parties doing business with or for the District. F. Abusive Conduct Conduct of an employer or employee in the workplace, with malice, that a reasonable person would find hostile, offensive, and unrelated to an employer’s legitimate business interests, even when not due to an employee’s Legally Protected Characteristic. It may include repeated infliction of verbal abuse, such as the use of derogatory remarks, insults, and epithets, verbal or physical conduct that a reasonable person would find threatening, intimidating, or humiliating, or the gratuitous sabotage or undermining of a person’s work performance. Workplace bullying, including off-duty cyber-bullying of employees, is strictly Irvine Ranch Water District Page 27 of 161 POLICY NO. 29 – PREVENTION AND CORRECTION OF HARASSMENT, DISCRIMINATION, RETALIATION, AND ABUSIVE CONDUCT 29-4 prohibited. While abusive conduct and bullying are not per se unlawful, such conduct does violate District policy and will not be tolerated. G. Retaliation Taking adverse action against any employee because of (1) the employee’s opposition to a practice the employee reasonably believes to constitute employment discrimination, harassment, retaliation, or abusive conduct or (2) because of the employee’s participation in an employment discrimination, harassment, or retaliation investigation, proceeding, or hearing. or (3) because of such opposition or participation by a family member or close associate of the employee. 1. Protected Opposition Protected opposition to perceived discrimination, harassment, retaliation, or abusive conduct includes, but is not limited to, threatening to file a discrimination, harassment, or retaliation complaint with any federal or state agency, or court, or complaining or protesting about alleged discrimination, harassment, retaliation, or abusive conduct to a supervisor, manager, co-worker, or other official. Protected opposition also includes a complaint or protest made on behalf of another employee or made by the employee’s representative. The District also prohibits retaliation against somebody closely related to or associated with the employee exercising such rights. Opposition not made in good faith, or made in a manner which disrupts the workplace, or which constitutes an unlawful activity, or which includes badgering or threatening of employees or supervisors is not protected. 2. Protected Participation Protected participation includes, but is not limited to, filing a charge, testifying, assisting, or participating in any manner in an investigation under this Policy, or in a proceeding, hearing or litigation under federal or state discrimination, harassment, or retaliation statutes, at other hearings regarding protected employee rights, such as unemployment compensation proceedings, and making requests for reasonable accommodation of a Legally Protected Characteristic. 3. Adverse Action Adverse actions include, but are not limited to, the following acts: disciplinary actions, negative performance evaluations, undesirable transfer, undesirable assignments, negative comments, unwarranted criticism, actions that harm the employee outside the workplace, undesirable change in benefits, undesirable change in work schedule, unwarranted exclusion from meetings or events, or undesirable change in work duties. H. Supervisor Any individual having the authority to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or the responsibility to direct other employees, or to adjust their grievances, or to effectively recommend such action, if the exercise of that authority is not of a merely routine or clerical nature , but requires the use of independent judgment. Irvine Ranch Water District Page 28 of 161 POLICY NO. 29 – PREVENTION AND CORRECTION OF HARASSMENT, DISCRIMINATION, RETALIATION, AND ABUSIVE CONDUCT 29-5 Employees who have questions regarding these definitions or are uncertain what constitutes discrimination, harassment, sexual harassment, retaliation, or other prohibited conduct under the District’s policy should contact a supervisor or Human Resources. 4. Making Discrimination, Harassment, Retaliation, or Abusive Conduct Complaints A. In General The District’s complaint procedure provides for an immediate, thorough, impartial, and objective investigation of every discrimination, harassment, retaliation, and abusive conduct claim, appropriate disciplinary action against one found to have engaged in prohibited discrimination, harassment, retaliation, or abusive conduct, and appropriate remedies to any victim of discrimination, harassment, retaliation, or abusive conduct. The District encourages reporting of all perceived incidents of discrimination, harassment, retaliation, and abusive conduct. B. Complaint Procedure 1. The District cannot resolve discrimination, harassment, retaliation, or abusive conduct unless the District is aware of the situation. The District relies upon its employees to bring those concerns to the attention of the District so that the necessary steps can be taken to correct the situation, and all employees are encouraged to do so. Accordingly, any employee, applicant, or guest who believes he or she has been harassed, discriminated or retaliated against or subjected to abusive conduct should promptly report the facts of the incident/incidents and the name(s) of the individual(s) involved to his/her immediate supervisor, any supervisor, Human Resources or to the General Manager. 2. Complaints can be made verbally or in writing and should include the following information: a. The employee's name and position title. b. The name of the person or persons committing the discrimination, harassment, or retaliation, including their title(s). c. The specific nature of the discrimination, harassment, retaliation, or abusive conduct, how long it has been going on, and any adverse employment action, demotion, failure to promote, dismissal, refusal to hire, transfer, etc., taken against the victim as a result of the harassment, if applicable, or any other threats made against the victim as a result of the harassment. d. Witnesses to the discrimination, harassment, retaliation, or abusive conduct, if any. e. Whether the victim previously has reported such discrimination, harassment, retaliation, or abusive conduct and, if so, when and to whom. f. Notification to the District is essential. Employees may be assured that they will not be penalized in any way for filing a good faith complaint of potential discrimination, harassment, retaliation, or abusive conduct. Irvine Ranch Water District Page 29 of 161 POLICY NO. 29 – PREVENTION AND CORRECTION OF HARASSMENT, DISCRIMINATION, RETALIATION, AND ABUSIVE CONDUCT 29-6 ALL EMPLOYEES SHOULD NOTE THAT THE FAILURE TO USE THE DISTRICT’S COMPLAINT PROCEDURE MAY HAVE AN ADVERSE EFFECT ON ANY CLAIM UNDER THIS POLICY IF SUCH CLAIMS ARE LITIGATED. C. Reporting Obligations 1. Any supervisor who receives a complaint of discrimination, harassment, retaliation, or abusive conduct; witnesses discrimination, harassment, retaliation, or abusive conduct; or has any reason to believe that discrimination, harassment, retaliation, or abusive conduct may have occurred in the workplace is required to report the conduct immediately to Human Resources. 2. A supervisor will be subject to discipline for failing to report offensive conduct that potentially constitutes discrimination, harassment, retaliation, or abusive conduct if the supervisor knew or should have known of the offensive conduct in the normal course and scope of his/her supervisory duties. 3. All other employees who observe or are advised about the discrimination, harassment, retaliation, or abusive conduct involving another employee are encouraged to report the conduct to a supervisor or to Human Resources. D. The District’s Response to Reports or Complaints 1. Investigation of Complaints a. All incidents of discrimination, harassment, retaliation, and abusive conduct that are reported must be investigated appropriately by the District so that corrective and preventive actions can be promptly taken if warranted. The District will promptly undertake or direct an effective, thorough, impartial, and objective investigation of the allegations, which will by conducted by qualified personnel. b. The investigation will include obtaining information from the accused and anyone who may have been a witness to the alleged misconduct. Statements made in the course of the investigation will be kept as confidential as practicable. c. The District will document each complaint and track each investigation to ensure reasonable progress, timely closure, and reasonable findings based on the evidence collected. 2. Intermediary Measures Employees may be placed on a leave of absence, or subject to other intermediary measures, until the conclusion of the investigation. 3. Cooperation with the Investigation a. It is important for the complaining party, the accused party, and all persons interviewed as witnesses during the investigation to understand that it is a violation of this policy to discuss any confidential investigation Irvine Ranch Water District Page 30 of 161 POLICY NO. 29 – PREVENTION AND CORRECTION OF HARASSMENT, DISCRIMINATION, RETALIATION, AND ABUSIVE CONDUCT 29-7 matters with other employees, or to conduct separate investigations at any time. The District will not tolerate any employees who interfere with its own internal investigations, or internal complaint procedures. b. All employees involved in a workplace investigation into alleged discrimination, harassment, retaliation, or abusive conduct are required to fully and truthfully cooperate with the investigation. Failure to fully and truthfully cooperate with the investigation is grounds for disciplinary action, up to and including termination. c. All employees are prohibited from engaging in retaliation, as defined in Section 3.G., above. 4. District Determination and Corrective Action a. The District will make its determination based on the findings of the investigation and communicate that determination to the complaining employee, and to the accused. Parties are not entitled to copies of any notes or other written materials regarding the investigation, as these are considered to be confidential documents. b. If it is determined that the accused, or any other employee has violated District policies, appropriate corrective action will be taken. In addition, as part of the District’s efforts to remedy the complaining employee's concerns, the complaining employee will be informed in general terms regarding any remedial measures and disciplinary actions imposed against the violator. c. The information and definitions set forth in Section 3, above, are based on the legal definitions of discrimination, harassment, and retaliation. In light of the District’s duty to prevent the unlawful conduct defined in Section 3, and in light of the District’s desire to have a professional and productive work environment, the District reserves the right to take appropriate corrective action when an employee engages in inappropriate conduct that does not fully rise to the legal standards or definitions set forth in Section 3 of this Policy. For example, the District may take appropriate corrective action for inappropriate conduct, even if such conduct was not subjectively unwelcome or offensive to another employee of the District, or did not involve a legally protected characteristic. 5 Intentionally False Complaints While the District vigorously defends its employees' right to work in an environment free of discrimination, harassment, and retaliation, it also recognizes that false accusations of discrimination, harassment, or retaliation can have serious consequences. Accordingly, any employee who is found, through the District’s investigation, to have deliberately and falsely accused another person of discrimination, harassment, or retaliation will be subject to appropriate disciplinary action, up to and including termination. 6. Anonymity and Confidentiality Irvine Ranch Water District Page 31 of 161 POLICY NO. 29 – PREVENTION AND CORRECTION OF HARASSMENT, DISCRIMINATION, RETALIATION, AND ABUSIVE CONDUCT 29-8 a. While the District will investigate anonymous complaints, the District strongly discourages anonymous complaints. b. EMPLOYEES CHOOSING TO FILE A COMPLAINT ANONYMOUSLY MUST BE AWARE THAT ANONYMITY IN THE COMPLAINT PROCEDURE MAY COMPROMISE THE DISTRICT’S ABILITY TO COMPLETE A THOROUGH INVESTIGATION. c. Employees should also be aware that should the District learn of the identity of an anonymous complainant, the District cannot guarantee that his/her identity will remain confidential, if the District determines in its discretion that disclosure is necessary to complete the investigation. d. The District will take all reasonable steps available to maintain the confidentiality of all complaints of discrimination, harassment, retaliation, and abusive conduct, as well as all information gathered during an investigation. However, the District retains sole discretion to determine whether disclosure of information is necessary to complete the investigation. e. All employees involved in the investigation of discrimination, harassment, retaliation, or abusive conduct complaints as either investigator(s), complainant(s), witness(es), or accused are required to keep all information related to the investigation confidential. Revealing such information is grounds for disciplinary action, except as expressly permitted by law, such as in discussion with a legal or employee representative. 5. Employee’s Duty to Disclose Benefits Received A. Employees are hereby informed that no supervisor, manager, or officer of the District, or other person or entity doing business with the District, is authorized to expressly or impliedly condition the receipt or denial of any benefit, compensation, or other term or condition of employment on an employee’s acquiescence to any sexual demand. B. To the contrary, all employees are instructed that they must refuse such demands and report them promptly either to their immediate supervisor or to Human Resources. Any employee who is found to have accepted any benefit from the District because he/she submitted to an unreported sexual demand will be disciplined appropriately, including but not limited to, reimbursement for the value of any benefits received. Any employee making such a demand will be similarly disciplined. 6. Additional Enforcement Information In addition to the District’s internal complaint procedure, employees should also be aware that the Equal Employment Opportunity Commission (“EEOC”) and the Department of Fair Employment and Housing (“DFEH”) investigate and prosecute complaints of discrimination, harassment, and/or retaliation in employment. Irvine Ranch Water District Page 32 of 161 POLICY NO. 29 – PREVENTION AND CORRECTION OF HARASSMENT, DISCRIMINATION, RETALIATION, AND ABUSIVE CONDUCT 29-9 Employees can contact the EEOC as follows: Employees can contact the DFEH as follows: Los Angeles District Office Los Angeles Office 255 East Temple, 4th Floor 320 West 4th Street, 10th Floor Los Angeles, California 90012 Los Angeles, CA 90013 800-669-4000 | 800-669-6820 (TTY) 800-884-1684 | 800-700-2320 (TTY) www.eeoc.gov www.dfeh.ca.gov 7. Training and Policy Dissemination All employees who are hired by the District will be given a copy of this Policy, and will receive guidance from the District on its provisions and the District’s commitment to provide a workplace free from discrimination, harassment, and retaliation. In addition, all supervisory, nonsupervisory and temporary employees will be trained in accordance with applicable requirements of the Fair Employment and Housing Act (Government Code § 12950.1) and implementing regulations. As a course of best risk management practices the District will provide such training to all other employees periodically. Adopted by IRWD Board of Directors on: February 11, 2019 Irvine Ranch Water District Page 33 of 161 MESA WATER DISTRICT Management Policies and Procedures Manual Policy No: DM-012 Author: Human Resources Page No: 1 of 9 Rev. No. 3 Dated: 3/15/16 Effective Date: 12/11 /02 DISCRIMINATION, HARASSMENT AND RETALIATION POLICY AND COMPLAINT PROCEDURE I.PURPOSE Mesa Water District (Mesa Water®) has a strong commitment to prohibiting and preventing discrimination, harassment and retaliation in the workplace. This Discrimination, Harassment and Retaliation Policy and Complaint Procedure (hereinafter referred to as the "Policy") sets forth Mesa Water's policy and complaint procedures for investigating and resolving discrimination, harassment and retaliation internal complaints. Mesa Water® encourages all individuals to report any conduct that they believe violates this Policy as soon as possible. Any retaliation against a Mesa Water® employee because they filed or supported a complaint alleging a violation of this Policy or because they participated in the complaint resolution process is prohibited. Individuals found to have retaliated in violation of this policy will be subject to appropriate sanction or disciplinary action, up to and including termination. Mesa Water® has zero tolerance for any conduct that violates this Policy. Conduct need not arise to the level of a violation of law to violate this Policy. Instead, a single act can violate this Policy and provide grounds for discipline or other appropriate sanctions. Employees who violate this Policy shall be subject to appropriate sanction or disciplinary action, up to and including termination. II.COVERED INDIVIDUALS ANO SCOPE This Policy applies to all Mesa Water® employees, applicants, officers, officials, interns, volunteers and contractors. It applies all terms and conditions of employment, including, but not limited to: hiring, placement, promotion, disciplinary actions, layoffs, recalls, transfers, leaves of absence, compensation, training, and working effectively with other employees. Ill. DEFINITIONS A.Protected Activity -This Policy prohibits discrimination, harassment and retaliation because of a covered individual's protected activity. Protected activity includes: making a request for or receiving an accommodation for a disability; making a request for or receiving accommodation for religious Page 34 of 161 MESA WATER DISTRICT Management Policies and Procedures Manual Policy No: DM-012 Author: Human Resources Page No: 2 of 9 Rev. No. 3 Dated:3/15/16 Effective Date: 12/11 /02 DISCRIMINATION, HARASSMENT AND RETALIATION POLICY AND COMPLAINT PROCEDURE beliefs or practices; making or supporting a complaint under this Policy; opposing violations of this policy; or participating in an investigation under this Policy. B.Protected Classifications -This Policy prohibits harassment and discrimination because of a covered individual's protected classification. "Protected Classification: includes race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age (over 40), sexual orientation, military and veteran status, or any other basis protected by law. C.Policy Coverage -This Policy prohibits discrimination, harassment and retaliation of a covered individual because: (1) of an individual's protected classification as defined in this Policy; (2) of the perception that an individual has a protected classification; or (3) the individual associates with a person who has or is perceived to have a protected classification. D.Discrimination -This policy prohibits treating covered individuals differently because of the individual's protected classification as defined in this Policy, because of the perception of the individual's protected classification, or because the individual associates with a person who has or is perceived to have a protected classification. E.Harassment may include, but is not limited to, the following types of behavior taken because of a covered individual's protected classification. Note that harassment is not limited to conduct that Mesa Water® employees engage in. Under certain circumstances, harassment can also include conduct by those who are not employees, such as elected officials, appointed officials, persons providing services under contracts, or even members of the public: Speech, such as epithets, derogatory comments or slurs, and propositioning on the basis of a protected classification. This might include inappropriate comments on appearance, including dress or physical features, gender identification, or race, ethnic or sexually-oriented stories and jokes. Physical acts, such as assault, impeding or blocking movement, offensive touching, or any physical interference with normal work or movement. This Page 35 of 161 MESA WATER DISTRICT Management Policies and Procedures Manual Policy No: DM-012 Author: Human Resources Page No: 3 of 9 Rev. No. 3 Dated:3/15/16 Effective Date: 12/11 /02 DISCRIMINATION, HARASSMENT AND RETALIATION POLICY AND COMPLAINT PROCEDURE includes pinching, grabbing, patting, or making explicit or implied job threats or promises in return for submission to physical acts. Visual acts, such as derogatory gestures, posters, cartoons, emails, pictures, or drawings related to a protected classification. Sexual advances, requests for sexual favors and other acts of a sexual nature, where submission is made a term or condition of employment, where submission to or rejection of the conduct is used as the basis for employment decisions, or where the conduct is intended to or actually does unreasonably interfere with an individual's work performance or creates an intimidating, hostile, or offensive working environment. F.Guidelines for Identifying Harassment -To help clarify what constitutes harassment in violation of this Policy, the following guidelines should be followed: 1.Harassment includes any conduct which would be unwelcome or unwanted to a reasonable individual of the recipient's same protected classification and which is engaged in because of the recipient's protected classification. 2.It is no defense that the recipient appears to have "consented" to the conduct at issue by failing to protest about the conduct. A recipient may not protest for many legitimate reasons, including the need to avoid being insubordinate or to avoid being ostracized or subjected to retaliation. 3.Simply because no one has complained about a joke, gesture, picture, physical contact, or comment does not mean that the conduct is welcome. Harassment can evolve over time. Small, isolated incidents might be tolerated up to a point. The fact that no one has yet is complained does not preclude someone from complaining at some later time if the conduct is repeated in the future. 4.Even visual, verbal or physical conduct between two individuals who appear to welcome the conduct can constitute harassment of a third person who observes the conduct or learns about the conduct. Page 36 of 161 MESA WATER DISTRICT Management Policies and Procedures Manual Policy No: DM-012 Author: Human Resources Page No: 4 of 9 Rev. No. 3 Dated:3/15/16 Effective Date: 12/11 /02 DISCRIMINATION, HARASSMENT AND RETALIATION POLICY AND COMPLAINT PROCEDURE 5.Conduct can constitute harassment even if it is not explicitly or specifically directed at a particular individual. 6.Conduct can constitute harassment even if the individual engaging in the conduct has no intention to harass. Even well-intentioned conduct can violate this Policy if the conduct is directed at, or implicates a protected classification, and if a reasonable individual of the recipient's same protected classification would find it offensive (e.g., gifts, over attention, endearing nicknames, hugs). G.Retaliation -Retaliation occurs when adverse conduct is taken because of a covered individual's protected activity as defined by this Policy. "Adverse conduct" may include but is not limited to: taking sides because an individual has reported harassment or discrimination; spreading rumors about a complaint or about the person who complained or about someone who supports or assists the person who complained; shunning or avoiding an individual who reports harassment or discrimination; or making real or implied threats or intimidation to prevent an individual from reporting harassment or discrimination. Employees must be able to make a complaint of violation of this Policy without fear of retaliation from anyone. Employees must be able to cooperate in any investigation of a complaint without fear of retaliation or reprisals from anyone. IV.RESPONSIBILITIES A.General Manager -Responsibilities: •Reviewing and approving this Policy and future updates;•Ensuring adoption and enforcement of appropriate policies and practices for complying with laws prohibiting unlawful discrimination, harassment and retaliation; •Ensuring provision of prompt responses to complaints of discrimination, harassment and retaliation; and •Reviewing and issuing determinations of appeals resulting from investigations. B.Human Resources -Responsibilities: Page 37 of 161 MESA WATER DISTRICT Management Policies and Procedures Manual Policy No: DM-012 Author: Human Resources Page No: 5 of 9 Rev. No. 3 Dated:3/15/16 Effective Date: 12/11 /02 DISCRIMINATION, HARASSM ENT AND RETALIATION POLICY AND COMPLAINT PROCEDURE •Complying with laws and Mesa Water® policies prohibiting discrimination, harassment and retaliation; •Ensuring that employment-related actions are based solely on lawful, job­ related factors; •Responding promptly to complaints of discrimination, harassment or retaliation; •Overseeing the investigation of complaints of discrimination, harassment or retaliation; •Maintaining the confidentiality of complaints and investigations of discrimination, harassment or retaliation claims to the greatest extent legally possible; and •Providing training on preventing and responding to complaints of discrimination, harassment and retaliation to department managers, supervisors and employees. C.Managers and Supervisors -Responsibilities: •Complying with laws and Mesa Water® policies prohibiting discrimination, harassment and retaliation; •Making employment-related decisions based solely on lawful, job-related factors; •Informing employees of this Policy; •Modeling appropriate behavior; •Promptly reporting all discrimination, harassment and retaliation claims to Human Resources and assisting with their investigation; •Taking all steps necessary to prevent harassment, discrimination and retaliation from occurring; •Receiving complaints in a fair and serious manner, and documenting steps taken to resolve complaints; •Following up with those who have complained to ensure that the behavior has stopped and that there are no reprisals; •Informing those who complain of harassment, discrimination or retaliation of their option to contact the U.S. Equal Employment Opportunity Commission (EEOC) or California Department of Fair Employment and Housing (DFEH) regarding alleged Policy violations; •Assisting, advising, or consulting with employees and Human Resources regarding this Policy; Page 38 of 161 MESA WATER DISTRICT Management Policies and Procedures Manual Policy No: DM-012 Author: Human Resources Page No: 6 of 9 Rev. No. 3 Dated:3/15/16 Effective Date: 12/11 /02 DISCRIMINATION, HARASSMENT AND RETALIATION POLICY AND COMPLAINT PROCEDURE •Assisting in the investigation of complaints involving employee(s) in their departments and, when appropriate, recommending appropriate corrective or disciplinary action in accordance with Mesa Water® Employee Rules, up to and including termination; •Implementing appropriate disciplinary and remedial actions. •Reporting potential violations of this Policy of which he or she becomes aware to Human Resources or the department manager, regardless of whether a complaint has been submitted; •Reporting incidents of retaliation of those who have made or supported complaints or have participated in any investigation pursuant to this Policy; and •Participating in periodic training and scheduling employees for training regarding this Policy. D.Employees -Responsibilities: •Complying with laws and Mesa Water® policies prohibiting discrimination, harassment and retaliation; •Treating all individuals in the workplace with respect and consideration; •Modeling appropriate behavior; •Participating in periodic training regarding this Policy; •Fully cooperating with investigations pursuant to this Policy by responding fully and truthfully to all questions posed during the investigation; and •Immediately reporting acts he or she may believe in good faith constitute discrimination, harassment or retaliation to their supervisor, manager or Human Resources. V.COMPLAINT PROCEDURE A.When a covered individual believes he/she has encountered discrimination, harassment or retaliation, he/she should submit a complaint orally or in writing utilizing the Harassment/Discrimination/Retaliation Complaint Form (Attachment A) to any of the following: 1.Human Resources; 2.Immediate manager or supervisor; or Page 39 of 161 MESA WATER DISTRICT Management Policies and Procedures Manual Policy No: DM-012 Author: Human Resources Page No: 7 of 9 Rev. No. 3 Dated:3/15/16 Effective Date: 12/11 /02 DISCRIMINATION, HARASSMENT AND RETALIATION POLICY AND COMPLAINT PROCEDURE 3.Any manager or supervisor within or outside the department. The manager or supervisor shall notify Human Resources and the General Manager as soon as possible. There is no need to follow the chain of command in order to make complaint of a violation of this Policy. Also, the person reporting alleged harassment, discrimination or retaliation need not have been the victim of the conduct complained of to have standing to report, as long as they reasonably and in good faith believe that harassment, discrimination or retaliation in violation of the Policy has in fact occurred. B.Any supervisor or manager who receives a complaint shall notify Human Resources immediately. C.Upon receiving notification of a complaint, Human Resources shall, after reviewing the complaint and seeking advice of legal counsel when appropriate authorize and supervise the investigation of the complaint internally by appropriate Mesa Water® staff, and/or authorize and supervise an outside investigator to investigate the complaint, in a prompt and impartial manner by taking the following steps: 1.The investigation shall include interviews with the complainant(s), the alleged violator(s), and/or any other persons Human Resources has reason to believe may have relevant knowledge concerning the complaint. The investigation may include interviews of victims of similar conduct. 2.Reviewing the factual information gathered during the investigation to determine whether the alleged conduct occurred and if so whether it constitutes harassment, discrimination or retaliation, giving consideration to all factual information, the totality of the circumstances, including the nature of the verbal, physical, visual, or sexual conduct if relevant, and the context in which the alleged incidents occurred. 3.Reporting a summary of the determination as to whether this Policy has been violated to appropriate persons, including the complainant(s), the alleged violator(s), the supervisor, and the department manager. Page 40 of 161 MESA WATER DISTRICT Management Policies and Procedures Manual Policy No: DM-012 Author: Human Resources Page No: 8 of 9 Rev. No. 3 Dated:3/15/16 Effective Date: 12/11 /02 DISCRIMINATION, HARASSMENT AND RETALIATION POLICY AND COMPLAINT PROCEDURE 4.If it is determined that this Policy was violated, recommending prompt remedial action to the manager and/or taking prompt and effective remedial action against the violator(s). The remedial action will be commensurate with the severity of the offense, and may include disciplinary action, up to and including termination. If disciplinary action is imposed, the disciplinary action will not be communicated to the complainant(s). 5.Taking reasonable steps, including follow-up interviews, to protect the victim(s) and other potential victims from further harassment, discrimination or retaliation. 6.Taking reasonable steps to protect the complainant(s) from retaliation as a result of submitting the complaint. 7.An employee may appeal the conclusions reached in an investigation of a possible violation of this Policy by filing a written request with the office of the General Manager within one week after learning the conclusions. The General Manager or designee will meet with the employee(s), conduct whatever additional investigation appears appropriate, and advise the employee(s) of his/her conclusions. The decision of the General Manager or designee is final. D.Mesa Water® takes a proactive approach to potential Policy violations and will conduct an investigation on its own initiative if its officers, supervisors or managers become aware that harassment, discrimination or retaliation may be occurring, regardless of whether the recipient or a third party reports a •potential violation or submits a complaint. E.Option to Report to Outside Administrative Agencies -An individual has the option to report harassment, discrimination or retaliation to the U.S. Equal Employment Opportunity Commission (EEOC) or the California Department of Fair Employment and Housing (DFEH). These administrative agencies offer legal remedies and a complaint process. The nearest offices are listed in the government section of the telephone book or employees can check the posters that are located on Mesa Water® bulletin boards for office locations and telephone numbers. Page 41 of 161 MESA WATER DISTRICT Management Policies and Procedures Manual Policy No: DM-012 Author: Human Resources Page No: 9 of 9 Rev. No. 3 Dated:3/15/16 Effective Date: 12/11 /02 DISCRIMINATION, HARASSMENT AND RETALIATION POLICY AND COMPLAINT PROCEDURE VI.CONFIDENTIALITY Every possible effort will be made to assure the confidentiality of complaints made under this Policy to the greatest extent allowed by law. Complete confidentiality cannot occur, however, due to the need to fully investigate and the duty to take effective remedial action. An employee who is interviewed during the course of an investigation shall not attempt to influence any potential witness while the investigation is ongoing, and may be subject to discipline or other appropriate sanction for doing so. An employee may discuss his or her interview with a designated representative. Mesa Water® will not disclose a completed investigation report except as it deems necessary to support a disciplinary action, to take remedial action, to defend itself in adversarial proceedings, or to comply with the law or court order. VII.DISSEMINATION OF POLICY All current employees shall receive a copy of this Policy upon its implementation. All new employees shall receive a copy of this Policy during their new employee orientation, and shall sign an acknowledgment of receipt of this Policy. VIII.ATTACHMENTS A.Harassment/Discrimination/Retaliation Complaint Form Page 42 of 161 Attachment A DM-012 MESA WATER DISTRICT HARASSMENT/DISCRIMINATION/RETALIATION COMPLAINT FORM COMPLAINANT'S NAME DEPARTMENT PHONE NO. !ALLEGED VIOLA TOR(S) DEPARTMENT PHONE NO. NAME(S) OF WITNESS(ES):PHONE NO(S). DESCRIBE THE SPECIFIC INCIDENT(S) REGARDING THE COMPLAINT, INCLUDING DATES, TIMES, PERSONS INVOLVED AND PLACES. (Use the back of this form or attach additional pages as needed.) WHAT IS AN ACCEPTABLE RESOLUTION TO YOUR COMPLAINT? COMPLAINANT'S SIGNATURE DATE DATE RECEIVED BY HR IDATE INVESTIGATION STARTED SIGNATURE OF HR Please fill out as much 1nformat1on as possible. Page 43 of 161 Section 3.16 Policy Against Harassment and Discrimination The District strictly prohibits harassment or discrimination of an individual because of that individual’s sex, gender, gender identity, gender expression, race, religious creed, color, age (over forty), national origin, ancestry, marital status, medical condition, genetic information, military or veteran status, sexual orientation, physical or mental handicap or disability, or membership in any other protected classification under applicable law. Such harassment by employees and non- employees is not only unlawful, but it may result in high turnover, absenteeism, low morale and productivity, and an uncomfortable work environment. Therefore, the District will not tolerate any such harassment of its employees and will take affirmative steps to stop it. A.Application 1.This policy applies to all phases of the employment relationship, including recruitment, testing, hiring, upgrading, promotion/demotion, transfer, layoff, termination, rates of pay, benefits, and selection for training. 2.This policy applies to all officers, directors, and employees of the District, including persons working under contract for the District. B.Harassment Defined 1.Harassment may consist of offensive verbal, physical or visual conduct when such conduct is based on, or related to, an individual’s sex and/or membership in one of the above-described protected classifications, and: (a)Submission to the offensive conduct is an explicit or implicit term or condition of employment; (b)Submission to, or rejection of, the offensive conduct forms the basis for an employment decision affecting the employee; or (c)The offensive conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creates an intimidating, hostile or offensive working environment. 2.Examples of what may constitute prohibited harassment include, but are not limited to, the following: (a)Kidding or joking about sex or membership in one of the protected classifications; (b)Hugs, pats and similar physical contact; (c)Assault, impeding or blocking movement, or any physical interference with normal work movement; Page 1 of 5 Exhibit 2Moulton Niguel Water District Page 44 of 161 (d) Cartoons, posters and other materials referring to sex, or membership in one of the protected classifications; (e) Threats intended to induce sexual favors; (f) Continued suggestions or invitations to social events outside the workplace after being told such suggestions are unwelcome; (g) Degrading words or offensive terms of a sexual nature or based on the individual’s membership in one of the protected classifications; (h) Prolonged staring or leering at a person; (i) Similar conduct directed at an individual on the basis of race, color, ancestry, religious creed, handicap or disability, medical condition, age (over 40), marital status, sexual orientation, or any other protected classification under applicable law; or (j) Other examples include threats of reprisals; implying or actually withholding support for appointments, promotion or transfer; change of assignment; or suggestion that a poor performance report will be prepared if requests for sexual favors are not met. C. Reporting Procedure 1. Internal Reporting Procedure (a) Any employee who believes that he or she is the victim of harassment by co-workers, Supervisors, visitors, vendors or others should immediately report the incident to his or her Supervisor, or in the alternative, the Director of Human Resources or designee, depending on which individual the employee feels most comfortable contacting. In the event that the complaint is against the General Manager, the employee may report the incident directly to the President of the Board of Directors. (b) In addition to reporting the incident to District management, employees are encouraged to recognize the importance of informing the harasser that his or her behavior is unwelcome, offensive, in poor taste and inappropriate. 2. External Reporting Procedure Any employee who believes that he or she has been the victim of sexual or other prohibited harassment by coworkers, Supervisors, clients or Page 2 of 5 Exhibit 2Moulton Niguel Water District Page 45 of 161 customers, visitors, vendors or others may file a complaint with the California Department of Fair Employment and Housing (DFEH). D. Investigation 1. Internal Investigation (a) Upon the filing of a complaint with the District, the employee will be provided with a copy of this policy. The Director of Human Resources or designee is the person designated by the District to investigate complaints of harassment. The Director of Human Resources or designee may, however, delegate the investigation at his or her discretion. In the event the harassment complaint is against the Director of Human Resources or designee, an investigator shall be appointed by the General Manager (or the Board President, in the event that the complaint is against the General Manager). (b) When an allegation of harassment or discrimination is made by an employee, the Director of Human Resources or designee or other party to whom the complaint is made shall immediately prepare a report of the complaint. (c) The investigator shall make and keep a written record of the investigation, including notes of verbal responses made to the investigator by the person complaining of harassment or discrimination, witnesses interviewed during the investigation, the person against whom the complaint of harassment was made, and any other person contacted by the investigator in connection with the investigation. The investigator’s notes shall be made at the time the verbal interview is in progress. Any other documentary evidence shall be retained as part of the record of the investigation. Upon completion of the investigation, the results shall be given to the complainant, the alleged harasser, and the Director of Human Resources or designee (or the General Manager, in the event the complaint involves the Director of Human Resources or designee). If the complaint is against the General Manager, the Board President shall also be provided the results of the investigation. (d) All records and information related to the investigation of any alleged harassment and resulting disciplinary action shall be confidential, except to the extent disclosure is required by law, as part of the investigatory or disciplinary process, or as otherwise reasonably necessary. (e) Based on the report and any other relevant information, the Director of Human Resources or designee (or General Manager) shall, within Page 3 of 5 Exhibit 2Moulton Niguel Water District Page 46 of 161 a reasonable period of time, determine whether the conduct of the person against whom a complaint has been made constitutes harassment. In making that determination, the Director of Human Resources or designee (or General Manager) shall look at the record as a whole and at the totality of the circumstances, including the nature of the conduct in question, the context in which the conduct, if any, occurred, and the conduct of the person complaining of harassment. The determination of whether harassment occurred will be made on a case-by-case basis by the Director of Human Resources or designee (or the General Manager). (If the complaint is against the General Manager, the Board will determine whether the complaint constitutes harassment as set forth above.) 2. External Investigation Charges filed with the DFEH are investigated by the DFEH. E. Remedies 1. Corrective Action (a) The District will take whatever corrective action is deemed necessary, including but not necessarily limited to, disciplining or discharging any individual who is believed to have violated this prohibition against harassment. The District does not tolerate harassment or discrimination of any kind and will take appropriate disciplinary action whenever such harassment or discrimination is demonstrated. Other steps may be taken to the extent reasonably necessary to prevent recurrence of the harassment and to remedy the complainant’s loss, if any. Any individual who engages in conduct that is contrary to this policy may be personally liable in any legal action brought against him or her. (b) Corrective action shall be consistent with the nature and severity of the offense, the rank of the harasser, and any other factors relating to the fair and efficient administration of the District's operations. 2. External Remedies (a) In the event a complaint is filed with the DFEH, and the DFEH finds that the complaint has merit, the DFEH will attempt to negotiate a settlement between the parties. (b) If not settled, DFEH may prosecute the charging party's case before the Fair Employment and Housing Commission ("FEHC"). Legal remedies available through DFEH and FEHC for a successful claim Page 4 of 5 Exhibit 2Moulton Niguel Water District Page 47 of 161 by an applicant, employee or former employee include possible reinstatement to a former job, award of a job applied for, back pay, front pay, attorneys' fees, and, under appropriate circumstances, actual damages and/or administrative fines. (c) In the alternative, where the DFEH determines that a complaint lacks merit, or within 150 days after filing a complaint with the DFEH, the DFEH shall inform the alleged victim of his or her right to request a right-to-sue notice. Upon request by the alleged victim, the DFEH may grant permission to withdraw the case and pursue a court action. F. Retaliation No employee will be disciplined or otherwise retaliated against for complaining about such harassment or discrimination, for opposing prohibited conduct, or for participating in any investigation, proceeding, or hearing conducted by the District, DFEH, FEHC, Equal Employment Opportunity Commission, or any other state or federal agency. G. Employee Obligation 1. Employees are not only encouraged to report instances of harassment or discrimination, they are obligated to report instances of harassment. Reports are to be made to the Employee’s Supervisor or the Director of Human Resources or designee. 2. Employees are obligated to cooperate in every investigation of harassment or discrimination, including, but not limited to: (a) Coming forward with evidence, both favorable and unfavorable, to a person accused of harassment or discrimination; and (b) Fully and truthfully making a written report or verbally answering questions when required to do so during the course of the District’s investigation of alleged harassment or discrimination. 3. Knowingly and falsely accusing someone of harassment or discrimination or otherwise knowingly giving false information in an investigation of harassment or discrimination shall be grounds for disciplinary action up to and including termination. Page 5 of 5 Exhibit 2Moulton Niguel Water District Page 48 of 161 1300 EMPLOYEES AND DIRECTORS Different portions of this manual apply to Employees, Directors, the General Manager and our associated partners including consultants, contractors and vendors. We have attempted to make the distinctions clear where they exist. For example, the benefits available to MWDOC Directors are distinctly different from those available to MWDOC Employees. In addition, the grievance and corrective action process is different for Employees, the General Manager and Directors. Specifically, grievances against the GM or a Director are made to the President of the Board, Executive Committee or the entire Board of Directors. The Board always retains the authority to discipline itself. The MWDOC Board of Directors (Board of Directors, Board, Directors Board Members) and the MWDOC Metropolitan Water District Directors (MWDOC-MET Directors) are considered employees and therefore Director compensation is subject to Social Security taxation. Directors are eligible to participate in a qualifying public retirement system in accordance with IRS guidelines and are eligible for benefits in accordance with applicable statutes and District policies. In addition, Directors are subject to sections in the Personnel Manual related to conduct and decorum. In all other aspects, Directors shall be subject to the laws and regulations as applicable to such officials. 4102 PROHIBITION AGAINST DISCRIMINATION AND HARASSMENT The District strictly prohibits and has “zero tolerance” for discrimination and harassment in any phase of the employment and will investigate and take action as appropriate, including but not limited to recruitment, testing, hiring, upgrading, promotion/demotion, transfer, layoff, termination, rates of pay, benefits, and selection for training. This includes sexual harassment (which includes harassment based on sex, pregnancy, perceived pregnancy, childbirth, breastfeeding, or related medical conditions), as well as harassment, discrimination, and retaliation based on such factors as race, color, religion, religious creed (including religious dress and religious grooming practices), sex, national origin, ancestry, citizenship, age (40 years and older), mental disability and physical disability (including HIV and AIDS), legally-protected medical condition or information (including genetic information), protected medical leaves (requesting or approved for leave under the Family and Medical Leave Act or the California Family Rights Act), military and/or veteran status, service, or obligation, reserve status, national guard status, marital status, domestic partner status, gender, gender identity (including transgender identity), gender expression (including transgender expression), because Municipal Water District of Orange County Page 49 of 161 an individual has transitioned (to live as the gender with which they identify), is transitioning, or is perceived to be transitioning), sex stereotyping, sexual orientation, status as a victim of domestic violence, sexual assault or stalking, enrollment in a public assistance program, engaging in protected communications regarding employee wages or otherwise exercising rights protected under the California Fair Pay Act, requesting a reasonable accommodation on the basis of disability or bona fide religious belief or practice, or any other basis protected by federal, state, or local laws. The District strongly disapproves of and will not tolerate harassment, discrimination, or retaliation against applicants, employees, interns, or volunteers by managers, supervisors, co-workers or third parties with whom employees come into contact, consistent with applicable law. Similarly, the District will not tolerate harassment, discrimination, or retaliation by its employees directed toward non-employees with whom the District’s employees have a business, service, or professional relationship (such as independent contractors, vendors, clients, volunteers, or interns). 4103 TYPES OF HARASSMENT 4103.1 Harassment includes, but is not limited to, the following:  Verbal Forms of Harassment Epithets, derogatory comments or slurs, propositions based upon a person's protected status.  Physical Forms of Harassment Assault, impeding or blocking movement, grabbing, patting, leering, mimicking, taunting or any physical interference with normal work or movement when directed at an individual on the basis of their protected status.  Visual Forms of Harassment Derogatory posters, cartoons or drawings or emails based on a person’s protected status.  Sexual Harassment includes, but is not limited to, unwelcome sexual advances, requests for sexual favors and other verbal or physical conduct of a sexual nature when (1) submission to such conduct includes either an explicit or implicit condition of employment; (2) submission to or rejection of such conduct is used as the basis for an employment decision affecting the harassed employee; or (3) the harassment substantially interferes with an employee's work performance or creates an intimidating, hostile or offensive work environment. Examples include unwelcome sexual propositions, hugging, kissing, or other offensive physical contact of a sexual nature; lewd gestures, remarks or innuendoes, unwelcome discussions of sexual practices or anatomy, and sexually offensive posters, photographs, drawings, cartoons, jokes, stories, nicknames, or comments about appearance. Municipal Water District of Orange County Page 50 of 161 Examples of Sexual Harassment: For the purpose of clarification, examples of what may constitute prohibited sexual harassment include, but are not limited to, the following:  Making unsolicited sexual advances written, verbal, physical, or visual contact with sexual overtones. (Written examples: suggestive or obscene letters, notes, invitations. Verbal examples: derogatory comments, slurs, jokes, epithets. Physical examples: touching, assault blocking or impeding access, leering gestures, display of sexually suggestive objects or pictures, cartoons or posters.)  Continuing to express sexual interest after being informed that the interest is unwelcome. (Reciprocal attraction is not considered sexual harassment.)  Making reprisals, threats of reprisal, or implied threats of reprisal following a negative response. (For example, implying or actually withholding support for an appointment, promotion, or change of assignment; suggesting a poor performance report will be prepared; or suggesting probation will be failed.)  Engaging in implicit or explicit coercive sexual behavior which is used to control, influence, or affect the career, salary, or work environment of another employee.  Offering favors or employment benefits, such as promotions, favorable performance evaluations, favorable assigned duties or shifts, recommendations, reclassifications, etc., in exchange for sexual favors. (Similar conduct when applied to other protected classes including but not limited to race, color, creed, national origin, age, disability, medical condition, religion, sexual orientation, or marital status may constitute harassment and a violation of this policy. For example, racial jokes or degrading comments about age or ethnic background can constitute harassment under this policy). Accordingly, in order to avoid the risk of discipline, such acts should be avoided in all circumstances. 4103.2 Internal Complaint Procedure Any applicant or employee who believes that he or she has been the victim of sexual or other prohibited discrimination or harassment by co-workers, supervisors, clients or customers, visitors, vendors, Board Members or others must immediately notify his or her supervisor, or another supervisor or manager, depending on which individual the employee feels most comfortable contacting and the Director of Human Resources of the alleged conduct. In the event the complaint is against the Director of Human Resources, then the employee may report the incident to the General Manager or in the event the complaint is against the General Manager, the employee may report the incident to the Board President, Executive Committee or the full Board of Directors. Complaints will be investigated by Human Resources or, where appropriate, a designated neutral party, and the complainant will be advised of the general outcome of the investigation. In each case, the employee reporting the problem will receive an oral or written reply from management on the general results of the investigation and that remedial action has been taken, if any. Municipal Water District of Orange County Page 51 of 161 4103.3 Option to Report to Outside Administrative Agencies Applicants, officials, contractors and employees may file complaints about harassment or other employment discrimination with any of the local offices of the U.S. Equal Employment Opportunity Commission (EEOC) or the Civil Rights Department (CRD), whose addresses may be found in the local telephone directory. The EEOC and CRD are authorized to accept and investigate complaints of employment discrimination and to mediate settlements. These agencies have authority to issue accusations against employers, conduct formal hearings, and award reinstatement, back pay, damages, and other affirmative relief. State and federal law also prohibit retaliation against employees because they have filed a complaint with the EEOC, CRD, or other relevant agency for participating in an investigation, proceeding, or hearing with the agency, or opposing any practice made unlawful by federal or state law. 4103.4 Corrective Action If any violation of this policy is found to have occurred, the District will take appropriate corrective action which may include discipline against the individual(s) involved. Violations of this policy will likely result in immediate termination. See Section 5101 for further discussion of corrective actions. If an employee is not satisfied with the reply presented by the Director of Human Resources, they may file a grievance pursuant to the steps outlined in the Grievance Procedures, Section 4200. 4103.5 Cooperation All employees are required to cooperate fully and in good faith with the District in any investigation under this policy. Knowingly making a false charge of harassment or a false statement in connection with an investigation, or deliberately interfering with any such investigation, is also a violation of this policy and grounds for discipline, up to and including termination. 4103.6 Confidentiality The District will attempt to keep complaints and investigations under this policy confidential to the greatest extent possible, but some disclosure may be necessary to conduct a proper investigation and take appropriate corrective action. Employees are encouraged to use discretion in discussing complaints or investigations under this policy with others since unnecessary disclosure may prevent a fair investigation. 4103.7 No Retaliation No employee will be subject to any form of retaliation for reporting any violation or participating in any investigation under this policy truthfully and in good faith. Employees who believe they have been retaliated against in violation of this policy should utilize the same complaint procedure described in Sections 4103.2 or 4200. Municipal Water District of Orange County Page 52 of 161 4103.8 Contractors, Consultants, Vendors, Customers and Other Third Parties This policy applies to leased employees and individuals providing service to the District under contract such as consultants and other independent contractors. This policy also applies to vendors, customers and other third parties who are present in any workplace where District employees are performing duties (depending on degree of control that the District has over such individual). 4200 GRIEVANCE PROCEDURE The grievance procedure provides a means for settling grievances or complaints that arise over the application of this manual as quickly as possible and at the lowest possible level of authority. Each step in the procedure must be completed before the next step may be taken. Failure to take the next step within the timeframes allotted herein will result in the conclusion that the prior step resolved the grievance and waiver of the right to continue the grievance. Grievance procedures are not used for contesting disciplinary actions or performance assessments, unless said actions are alleged to be pretextual. A grievance must be filed within ten (10) calendar days of the occurrence of the event or within ten (10) calendar days following the date the grieving party could have reasonably known of the occurrence of the act or omission giving rise to the grievance. Any supervisor or other member of management who receives a grievance must notify Human Resources of the grievance as soon as practicable. The facts concerning the grievance and the grievance process are to remain confidential, to the extent possible given the requirements of District business. 4201 GRIEVANCE STEPS The following are the “steps” utilized in grievance reporting. Grievances concerning the Director of Human Resources will be immediately reported to the General Manager. In in the event the grievance is against the General Manager or a Board Member, the employee may report the incident to the Board President, the Executive Committee or the full Board of Directors and the Director of Human Resources, pursuant to Step 4 as stated in this policy. Step 1 The employee should initially try to resolve any item of concern informally with his or her direct supervisor. The direct supervisor should hold a conference with the employee as soon as reasonably practicable, following the employee’s request and attempt to informally resolve the issue. If the grievance is against the direct supervisor, the matter shall be taken directly to Step 2. Step 2 If successful resolution is not reached in Step 1, the employee shall reduce his or her concern to writing and submit it to his or her department head. A copy of the formal written grievance must also be provided to Human Resources. This formal written Municipal Water District of Orange County Page 53 of 161 grievance must be submitted within ten (10) calendar days of the date of the occurrence giving rise to the grievance or the right to file a grievance is waived. The manager, or his or her designee, shall meet with the grievant, and after the initial meeting, the manager or his or her designee will investigate the complaint. This investigation may involve separate conversations or meeting of all parties at the manager’s discretion. The manager shall attempt to provide his or her written decision with ten (10) calendar days of the date of the first meeting with the employee. Step 3 If the employee believes the decision of the manager does not adequately resolve the issue, the employee may submit a written appeal of that decision to the General Manager. This appeal must be submitted within ten (10) calendar days of the date of the manager’s written decision or the right to appeal is waived. The General Manager shall meet with the grievant and, after the initial meeting, the General Manager or his or her designee will investigate the complaint. This investigation may involve separate conversations or meeting of all parties, at the General Manager’s discretion. The General Manager shall attempt to provide his or her written decision with ten (10) calendar days of the date of the first meeting with the employee. Step 4 In order to submit an appeal to either the Board President, the Executive Committee or full Board of Directors, an employee must first go through Steps 1 through 3. If the employee believes the decision of General Manager does not adequately resolve the issue, the employee may request reconsideration. The written request must be submitted within ten (10) calendar days of the General Manager’s decision. The Board President, Executive Committee or full Board of Directors will be furnished with the then-existing written record. The Executive Committee or full Board of Directors will meet as soon as practicable to consider the grievance. The Executive Committee or full Board of Directors may, in its discretion, rely on the existing record or conduct a hearing in whatever way deemed appropriate under the circumstances. The Committee or full Board of Directors may call any witnesses or parties, if it deems such testimony necessary. If the employee desires, he or she may be represented. The decision of the Executive Committee or full Board of Directors shall attempt to provide its decision in writing within ten (10) calendar days of the close of the hearing. The action of the Executive Committee or full Board of Directors is final and binding. Municipal Water District of Orange County Page 54 of 161 2.BOARD OF DIRECTORS 2.1 BOARD OF DIRECTORS The District is governed by a ten-member Board of Directors representing geographic divisions within the District. Seven Directors are elected by general election of their respective constituents for a four-year term, and three are appointed by the City Councils of the Cities of Santa Ana, Anaheim, and Fullerton for a four-year term, subject to removal by the City Council. 2.2 BENEFITS Directors as “Employees” Motion No. 93-230, Adopted June 16, 1993 In accordance with IRS regulations and OCWD’s outside auditor’s at the time (KPMG Peat Marwick) recommendation, Directors’ classification from “independent contractors” to employees effective 9/1/93. Medical Insurance Dental Insurance Vision Insurance Life Insurance Retirement Plans - (Directors elected to participate in the Money Purchase Retirement Plan rather than contribute to Social Security.) 401 (A) Employee Retirement Plan/Money Purchase Plan 457 (B) Deferred Compensation Plans 2.3 RETIREE MEDICAL BENEFITS Resolution No. 82-6-52, Adopted June 16, 1982 Clarified by Motion No. 01-94, Adopted May 2, 2001 Eligibility for group health insurance coverage is presently extended to retired Directors (who took office prior to January 1, 1995) age 55 or over with at least 12 years of service with the District, and their spouse at the time of separation of employment. The Retiree Medical Benefit cannot be taken as a cash equivalent. 2.4 CANDIDATE STATEMENTS Resolution No. 79-6-53, Adopted June 20, 1979 District shall not pay for publication of election candidate's statements. Statements shall not contain more than 200 words. District does not authorize additional material to be mailed with sample ballot and District will not pay any costs for handling, packaging and mailing such additional material. 2.5 COMPENSATION California Water Code - Sections 20201 and 20202 The Water Code governs the amount and method of local agencies providing compensation to members of the governing board. The code provides that the Board may, by ordinance following a public hearing, increase its compensation by an amount not to exceed an amount equal to 5 percent for each calendar year following the operative date of the last adjustment. Any compensation adjustment does not become effective until 60 days from the date of adoption of the ordinance. 2.6 DISTRICT ACT SECTION 6.5 Government Code Section 53232.3 District Act Section 6.5 Resolution No. 01-1-10 and 01-10-1, Adopted January 17, 2001 and October 17, 2001. Amended by Resolution No. 19-10-154, Adopted October 16, 2019. Orange County Water District Page 55 of 161 19. MISCELLANEOUS POLICIES 19.1 Honorariums It is the policy of the Orange County Water District that honorariums for presentations accomplished on District time by District employees shall be paid to, and retained by, the District for deposit into the General Fund of the District. 19.2 Royalties It is the policy of the Orange County Water District that royalties for publication of work accomplished on District time by District employees shall be paid to and retained by the District for deposit into the General Fund of the District. 19.3 Conflicts of Interest and Acceptance of Gifts and Other Gratuities Employees shall not take part in or attempt in any manner to influence the consideration of any application, proceeding, or other matter involving their own personal property, real estate, investment, or other interest, or that of any relative or close personal acquaintance. In all such situations, the employee must disclose the nature of the relationship to his/her immediate supervisor and request to be relieved of any responsibility or involvement in such matter. Employees shall not directly or indirectly solicit any gift or receive any gift, whether in the form of money, services, loan, travel, entertainment, hospitality, promise, or any other form, under which circumstances it could reasonably be inferred the gift was intended to influence them or could be expected to influence them in the performance of their official duties, or was intended to influence them or could be expected to influence them in the performance of their official duties, or was intended as a reward for any official action on their part. Gifts that will be shared with office staff, such as boxes of candy, flowers, and food, may be viewed as exceptions provided, they are minimal value and do not exceed limits imposed by law for gifts to public employees. All financial disclosure laws and regulations must be complied with. If an employee receives any gift as specified above, the gift shall be rejected firmly but as tactfully as possible, so the good intentions of the giver are properly acknowledged. 19.4 Equal Employment and Harassment 19.4.1 Scope This policy applies to all Supervisors of the District, as well as to co-employees, elected and appointed officials, persons contracting with the District, producers, and other persons at the workplace whom the District knows or has a reason to know are violating this policy. All District personnel are expected to avoid any conduct that could be construed as harassment by any employee. Appropriate corrective action Orange County Water District Page 56 of 161 will be taken against all offenders, including discipline or discharge of Supervisors or employees who violate this policy. 19.4.2 Equal Employment The District is an equal opportunity employer. Personnel actions will comply with all applicable laws prohibiting discrimination based on race, religious creed, color, national origin, ancestry, physical handicap, intellectual disability, medical condition, marital status, pregnancy, age, genetic information, gender, gender identity, gender expression, sex, military or veteran status or sexual orientation. Any technique or procedure used in recruitment and selection of employees shall be designed to measure only the job-related qualifications of applicants. No recruitment or selection technique shall be used which, in the opinion of the District, is not justifiably linked to successful job performance. 19.4.3 Sexual Harassment Sexual harassment of all types is specifically prohibited. Sexual harassment of employees in the workplace is illegal, unacceptable and will NOT be tolerated. 19.4.3.1 Definition Under State and Federal law, it us unlawful to harass a person because of that person’s sex. Sexual harassment includes unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. “Sexual harassment” also includes gender harassment and harassment based on pregnancy, childbirth, or related medical conditions. The definition of sexual harassment includes many forms of offensive behavior, including harassment of a person of the same gender as the harasser. It is illegal whenever: (a) submission to such conduct is made a condition of employment, either expressly or implied; (b) submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting that individual; or (c) such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive working environment. Examples of sexual harassment include unwelcome sexual propositions or marriage proposals; unwelcome hugging, kissing, or other offensive physical contact of a sexual nature; lewd gestures, remarks, or innuendos; unwelcome discussions of sexual practices or anatomy; and sexually offensive posters, photographs, drawings, cartoons, jokes, stories, nicknames, or comments about appearance. 19.4.4 Policy Against Harassment The District strictly prohibits harassment of employees in the workplace based on race, religion, color, national origin, ancestry, physical handicap, intellectual disability, medical condition, marital status, age, gender, gender identity, or sexual orientation. Harassment includes all forms of offensive or unwelcome physical or verbal conduct that interferes with an employee’s work or creates an offensive or hostile working environment. Orange County Water District Page 57 of 161 Any employee who believes he/she has been unlawfully harassed should bring the matter to the attention of the employee’s Supervisor immediately and provide a full and accurate report of the underlying facts. Where the employee’s Supervisor is the alleged harasser, the employee should bring the matter to the attention of the Supervisor’s superior. Employees are urged to report to the employee’s Supervisor, but this is not required if the employee feels uncomfortable in doing so, or if the employee believes the Supervisor is the harasser. In all cases, employees are free to report such problems directly to the Director of Human Resources. Supervisors are required to report complaints to the Human Resources Department. At no time should the supervisor or department manager initiate an investigation of a reported complaint. All investigations shall be coordinated by Human Resources. If a member of the Human Resources Department is the subject of a complaint, the General Manager will designate an outside investigator. If the General Manager is the subject of a complaint, Human Resources will coordinate the investigation with the Board President. Upon notification of a harassment complaint, the Director of Human Resources, or other person acting in that capacity, shall promptly conduct an investigation of the complaint or bring in an independent outside investigator to conduct the investigation.. The investigation will generally include interviews with (1) the complainant; (2) the accused harasser; and (3) any other person the Investigator, or person acting in that capacity, has reason to believe has relevant knowledge concerning the complaint. This may include victims of similar conduct. All such reports will be kept confidential to the greatest extent possible; however, some disclosure will be necessary to conduct a proper investigation. In each case, the employee reporting the problem will receive a written reply from the Director of Human Resources, or other person acting in that capacity, on the results of the investigation and the action taken, if any. Any employee who is not satisfied with the reply may appeal to the General Manager and will receive a reply in writing. If the General Manager is the subject of an investigation, a designee will be assigned to hear the appeal. No employee shall be subject to any form of retaliation for reporting any violation, or for participating in any investigation under this policy, provided that they have done so truthfully and in good faith. Employees who believe they have been retaliated against in violation of this policy may utilize the grievance procedure described in this Personnel Manual. The Department of Fair Employment and Housing Act (DFEH) prohibits unlawful sexual harassment, as well as other forms of discrimination based on race, color, national origin, religious creed, age, disability, marital status, gender, gender identity, sexual orientation, and medical condition. Orange County Water District Page 58 of 161 Employees may file complaints about sexual harassment or other illegal employment discrimination with the California Fair Employment and Housing Commission (1390 Market Street, Suite 410, San Francisco, CA 94102; Telephone 415-557-2325), or with the California Department of Fair Employment and Housing (San Bernardino Office: 1845 S. Business Center Drive, #127, San Bernardino, CA 92408-3426; Telephone 909-383-4711). The Department of Fair Employment and Housing (DFEH) is authorized to accept and investigate complaints of employment discrimination and to mediate settlements as well as issue accusations against employers, conduct formal hearings, and award reinstatement, back pay, damages, and other affirmative relief. The Law prohibits retaliation in any investigation, proceeding, or hearing concerning the allegations.. The District will NOT tolerate any unlawful harassment or discrimination in employment. Violation of this policy can result in immediate termination of employment. A violation of this policy is subject to the formal grievance procedure as described in this Personnel Manual. If the allegation of harassment implicates any person rendering in a decision at any step in the grievance procedure, the employee may omit that particular step and proceed to the next step of the grievance procedure. 19.4.5 Malicious Complaints While the District vigorously defends its employees’ right to work in an environment free from work harassment, it also recognizes that false accusations of harassment can have serious consequences. Accordingly, any employee who is found, through the District’s investigation, to have knowingly falsely accused another person of harassment will be subject to appropriate disciplinary action up to and including termination. 19.5 Workplace Violence Policy 19.5.1 Policy The Orange County Water District (District) is committed to the principle that a work environment free of threats, violence, threatening behavior and acts of violence is essential for effective and efficient work and services. Civility, understanding, and mutual respect toward fellow employees and members of the public are intrinsic to the services we provide. The District does not tolerate acts of workplace violence, sexual harassment, intimidation, or threatening language committed by or against employees. Verbal threats of violence, threatening behavior, or acts of violence by anyone, including employees, contractors or the public, while engaged in District business or while performing official duties, will not be tolerated. The District strictly prohibits employees from making threats or engaging in violent acts. Employees found to Orange County Water District Page 59 of 161 10 South Coast Water District Oct. 2022 Each employee will receive periodic written performance reviews, in a process, format and style determined by the District and your supervisor. Generally, performance evaluations will be conducted annually and/or on a shorter or longer schedule established by the District and/or by your supervisor. The evaluation will be conducted by your supervisor and will be reviewed with you. You and your supervisor will be required to electronically sign the evaluation simply to acknowledge that it has been presented to you, that you have discussed it with your supervisor, and that you are aware of its contents. 2.8 Exit Interviews The General Manager and Human Resources may solicit feedback in the form of an exit interview to discuss your reasons for leaving and any other impressions that you may have about South Coast Water District. During the exit interview, you can provide insights into areas for improvement for South Coast Water District and your specific position. 2.9 Return of District Property Any and all property issued to you by South Coast Water District, such as software, computer equipment, office equipment, telecommuting equipment, databases, files, emergency backpacks, cell phone, keys, door badges, gate remote control, and credit card(s) must be returned at the time of your termination. You will be responsible for any lost or damaged items. 2.10 Personnel Files Human Resources maintains a personnel file on each employee. You may review your personnel file upon request and in the presence of Human Resources personnel. If you are interested in reviewing your file, contact Human Resources to make arrangements. Additionally, management reserves the right to review a personnel file within their line of supervision. To ensure that your personnel file is up-to-date at all times, notify Human Resources of any changes in your name, telephone number, home address, withholding instructions, number of dependents, beneficiary designations, scholastic achievements, the individuals to notify in case of an emergency, and so forth. III. HARASSMENT, DISCRIMINATION AND RETALIATION 3.1 Equal Employment Opportunity The District is an equal opportunity employer and makes employment decisions on the basis of conduct and merit. The District desires to have the best available persons in every job position. The District is committed to providing a work environment free of harassment, discrimination, retaliation and disrespectful or other unprofessional conduct based on: Page 60 of 161 11 South Coast Water District Oct. 2022 • Race • Religion (including religious dress and grooming practices) • Color • Sex/gender (including pregnancy, childbirth, breastfeeding or related medical conditions), sex stereotype, gender identity/gender expression/transgender (including whether or not you are transitioning or have transitioned) and sexual orientation • National origin • Ancestry • Physical or mental disability • Medical condition • Genetic information/characteristics • Marital status/registered domestic partner status • Age (40 and above) • Sexual orientation • Military or veteran status • Any other basis protected by federal, state or local law or ordinance or regulation. The District also prohibits discrimination, harassment, disrespectful or unprofessional conduct based on the perception that anyone has any of those characteristics or is associated with a person who has or is perceived as having any of those characteristics. In addition, the District prohibits retaliation against individuals who raise complaints of discrimination or harassment or who participate in workplace investigations. 3.2 Harassment Prevention The District's policy prohibiting harassment applies to all persons involved in the operation of the District. The District prohibits harassment, disrespectful or unprofessional conduct by any employee of the District, including supervisors, managers and co-workers. The District's Anti-Harassment Policy also applies to vendors, customers, independent contractors, unpaid interns, volunteers, persons providing services pursuant to a contract and other persons with whom you come into contact while working. Prohibited harassment, disrespectful or unprofessional conduct includes, but is not limited to, the following behavior: • Verbal conduct such as epithets, derogatory jokes or comments, slurs or unwanted sexual advances, invitations, comments, posts or messages; • Visual displays such as derogatory and/or sexually oriented posters, photography, cartoons, drawings or gestures; • Physical conduct including assault, unwanted touching, intentionally blocking normal movement or interfering with work because of sex, race or any other protected basis; Page 61 of 161 12 South Coast Water District Oct. 2022 • Threats and demands to submit to sexual requests or sexual advances as a condition of continued employment, or to avoid some other loss and offers of employment benefits in return for sexual favors; • Retaliation for reporting or threatening to report harassment; and • Communication via electronic media of any type that includes any conduct that is prohibited by state and/or federal law or by District policy. Sexual harassment does not need to be motivated by sexual desire to be unlawful or to violate this policy. For example, hostile acts toward an employee because of his/her gender can amount to sexual harassment, regardless of whether the treatment is motivated by sexual desire. Prohibited harassment is not just sexual harassment, but harassment based on any protected category. 3.3 Discrimination Prevention The District is committed to compliance with all applicable laws providing equal employment opportunities. This commitment applies to all persons involved in District operations. The District prohibits unlawful discrimination against any job applicant, employee or unpaid intern of the District, including supervisors and coworkers. 3.4 Retaliation Prevention The District will not retaliate against you for filing a complaint or participating in any workplace investigation or complaint process and will not tolerate or permit retaliation by management, employees, or co-workers. 3.5 Reasonable Accommodation Discrimination can also include failing to reasonably accommodate religious practices or qualified individuals with disabilities where the accommodation does not pose an undue hardship. To comply with applicable laws ensuring equal employment opportunities to qualified individuals with a disability, the District will make reasonable accommodations for the known physical or mental limitations of an otherwise qualified individual with a disability who is an applicant or an employee unless undue hardship would result. Any job applicant or employee who requires an accommodation in order to perform the essential functions of the job should contact District Human Resources and discuss the need for an accommodation. The District will engage in an interactive process with the employee to identify possible accommodations, if any, that will help the applicant or employee perform the job. An applicant, employee or unpaid intern who requires an accommodation of a religious belief or practice (including religious dress and grooming practices, such as religious clothing or hairstyles) should also contact District Human Resources and discuss the need for an Page 62 of 161 13 South Coast Water District Oct. 2022 accommodation. If the accommodation is reasonable and will not impose an undue hardship, the District will make the accommodation. 3.6 Complaint Process If you believe that you have been the subject of harassment, discrimination, retaliation or other conduct prohibited by law, bring your complaint to your supervisor or any other District supervisor, Human Resources, or the General Manager as soon as possible after the incident. You can bring your complaint to any of these individuals. If you need assistance with your complaint, or if you prefer to make a complaint in person, contact Human Resources. Please provide all known details of the incident or incidents, names of individuals involved and names of any witnesses. It would be best to communicate your complaint in writing, but this is not mandatory. The District encourages all individuals to report any prohibited incidents of harassment, discrimination, retaliation or other prohibited conduct forbidden by this policy immediately so that complaints can be quickly and fairly resolved. You also should be aware that the Federal Equal Employment Opportunity Commission and the California Department of Fair Employment and Housing investigate and prosecute complaints of prohibited harassment, discrimination, and retaliation in employment. If you think you have been harassed or discriminated against or that you have been retaliated against for resisting, complaining or participating in an investigation, you may file a complaint with the appropriate agency. The nearest office can be found by visiting the agency websites at www.dfeh.ca.gov and www.eeoc.gov. Supervisors must refer all complaints involving harassment, discrimination, retaliation, or other prohibited conduct to Human Resources or the General Manager of the District so the District can try to resolve the complaint. When the District receives allegations of misconduct, it will immediately undertake a fair, timely, thorough and objective investigation of the allegations in accordance with all legal requirements. The District will reach reasonable conclusions based on the evidence collected. The District will maintain confidentiality to the extent possible. However, the District cannot promise complete confidentiality. The employer's duty to investigate and take corrective action may require the disclosure of information to individuals with a need to know. If the District determines that harassment, discrimination, retaliation, or other prohibited conduct has occurred, appropriate and effective corrective and remedial action will be taken in accordance with the circumstances involved. The District also will take appropriate action to deter future misconduct. Any employee determined by the District to be responsible for harassment, discrimination, retaliation, or other prohibited conduct will be subject to appropriate disciplinary action, up to, and including termination. Employees should also know Page 63 of 161 14 South Coast Water District Oct. 2022 that if they engage in unlawful harassment, they can be held personally liable for the misconduct. 3.7 Reporting of Improper Activities The District is committed to compliance with the federal and state laws, rules, and regulations to which it is subject, including those concerning improper activities. These laws promote efficient and appropriate use of public funds and enable the District to achieve its mission. The District’s internal controls and operating procedures are intended to prevent and detect improper activities. However, the District may not always be able to prevent or detect such activities. Therefore, the District relies on employees to bring suspected improper activities to its attention. This Policy outlines a procedure for employees to report improper activities. All employees are encouraged to report any known or suspected improper activities involving other employees as well as directors, consultants, vendors, contractors, outside agencies doing business with employees of such agencies, and/or any other entities having a business relationship with the District. The District maintains an open-door policy and suggests that employees share their questions, concerns, or complaints with someone who can address them properly. The District will take all appropriate steps to thoroughly evaluate any reports of improper activities which are brought to its attention. In addition, the California Attorney General’s Office maintains a Whistleblower Hotline which employees may call to report possible violation of federal and state laws, rules, and regulations. Information on the Hotline is posted in all District facilities. As used in this Whistleblower Policy, “improper activities” includes, but is not limited to, all the following: • Any act which is in violation of any state or federal law or regulation, including, but not limited to, corruption, malfeasance, bribery, theft of government property, fraudulent claims, fraud, coercion, conversion, malicious prosecution, misuse of government property, or willful omission to perform duty; • Misappropriation of funds, securities, supplies, or other district assets; • Impropriety in the handling or reporting of money or financial transactions; • Authorizing or receiving payment for goods not received or services not performed; • Falsifying or altering District records; • Accepting or seeking anything of material value from contractors, vendors, or persons providing services/materials to the District where the communication is made that a payment or donation is required in order to do business with the District; • Misusing or destroying District property or the property of another on District premises; and • Any similar or related irregularity. Page 64 of 161 15 South Coast Water District Oct. 2022 If an employee has a reasonable belief that an improper activity has occurred, the employee is encouraged to report his/her concerns to his/her immediate supervisor. If the employee believes that the issue requires the involvement of someone other than his/her immediate supervisor due to the seriousness of the conduct or the persons involved, the employee should contact the next level supervisor, Human Resources or the General Manager. If for any reason the employee does not feel comfortable reporting the information to either the next level supervisor, Human Resources or the General Manager, he or she should report the information directly to the District’s General Counsel. Upon receipt of any report of an improper activity from any subordinate employee, supervisors and management level employees should report the information to Human Resources or the General Manager. If for any reason the supervisor or management level employee does not feel comfortable reporting the information to either Human Resources or the General Manager, he or she should report the information directly to the District’s General Counsel. Upon receipt of any report of an improper activity, Human Resources or the General Manager shall consult with the District’s General Counsel. The District’s counsel will assist in evaluating what response is appropriate, including a determination regarding whether, under applicable law, the circumstances warrant an investigation and how any such investigation should be conducted. District management should not attempt to conduct investigations, interviews, or interrogations without the initial evaluation of District Counsel. However, District management is ultimately responsible for taking appropriate corrective measures to ensure adequate controls exist to prevent reoccurrence of improper activities. District management is also responsible for ensuring that the applicable requirements of state law respecting ethics are followed, including the Political Reform Act. Confidentiality will be maintained to the extent possible within the limitations of the law and the legitimate need to know in order to carry out an investigation. Release of an employee’s name may be required pursuant to a subpoena or in other circumstances as required by law. In addition, an employee’s public testimony may be necessary to prove the case against the alleged wrongdoer. 3.8 Retaliation Prohibited The District will not retaliate against any employee who reports to the District, or any other government or law enforcement agency, a potential violation of the federal or state laws, rules and regulations based on a reasonable belief that such violation has occurred. In addition, the District will not retaliate against an employee for refusing to participate in an activity that would result in a violation of federal or state laws, rules, and regulations. District employees are expressly prohibited from taking any adverse actions against an employee for exercising these rights. Employees who believe they have been subject to any form of retaliation based on exercising their rights as a whistleblower should promptly Page 65 of 161 16 South Coast Water District Oct. 2022 report the conduct to their immediate supervisor, to Human Resources, the General Manager or District General Counsel. Employees may be subject to disciplinary action in accordance with this Personnel Manual, up to and including termination, for making accusations of improper activities or retaliation, which they do not reasonably believe to be true. 3.9 Informal Internal Dispute Resolution Misunderstandings or conflicts can arise in any organization. To ensure effective working relations, it is important that such matters be resolved before serious problems develop. Most incidents resolve themselves naturally; however, should a situation persist that you believe is detrimental to your employment with the District and does not involve prohibited conduct such as illegal discrimination, harassment or retaliation, as described above, you are encouraged to follow the procedure described below for bringing an informal complaint to management's attention. Step One. Try to resolve the matter informally with your co-employee if you deem it is safe and appropriate; Step Two. Discussing the problem with your supervisor is encouraged as the next step. If, however, you do not believe a discussion with your supervisor is appropriate, you may proceed directly to Step Three. Step Three. If your problem is not resolved after discussion with your supervisor or if you feel discussion with your supervisor is inappropriate, you are encouraged to request a meeting with Human Resources. If, however, you do not believe a discussion with Human Resources is appropriate, you may discuss the matter with the General Manager. IV. DISCIPLINARY ACTION 4.1 Authority The General Manager shall have the authority to demote, terminate, reduction in pay, or suspend without pay, for cause, as hereinafter defined, any regular full- time or part-time employee of the District. The rights set forth in this Article does not apply to probationary employees or to employees holding positions listed on the Executive Compensation Salary Schedule, all of whom are at-will and serve at the pleasure of the District. At-will employees can be disciplined up to and including termination without cause or notice. 4.2 Cause “Cause” shall include, but is not limited to: • Absence without approved leave • Excessive absence or tardiness • Actions contrary to the personnel rules and regulations of the District • Inefficiency or incompetence Page 66 of 161 17 South Coast Water District Oct. 2022 • Failing to meet or comply with the minimum standards of a position or to perform the duties required of an employee in that position in an effective and timely manner • Discourteous treatment of the public or other employees • Failure to possess or keep in effect any license, certification, or other similar requirement necessary for the employee to perform the duties of the job position or required by such job classification • Misuse of sick leave • Any willful act of conduct undertaken in bad faith, either during or outside of duty hours, which is of such a nature that it causes discredit to the District or the employee’s department • Willful disobedience, insubordination, or actions contrary to specific directions given by management • Dishonesty • Intoxication while on duty • Use of, possession of, or being under the influence of alcohol, drugs, or narcotics while on duty or in such close proximity thereof as to cause any detrimental effect upon the employee or upon other employees • Falsification of forms, records, or reports including, but not limited to, timesheets, employment applications, etc. • Possessing or bringing firearms or weapons onto District property, including District vehicles, or possessing firearms or weapons in personal vehicles on District property • Possession or consumption of intoxicating beverages, illicit drugs, or narcotics on District property, including district vehicles • Disorderly or immoral conduct while on duty • Conviction of a felony or misdemeanor involving moral turpitude • Sexual harassment or other unlawful harassment of other employees • Neglect of duty • Working overtime without authorization • Abuse or misuse of District property or equipment • Abusive, offensive, or vulgar language • Threatening or intimidating other employees or supervisors • Actions incompatible with, or not in the best interests of, the purposes of the District • Failure to follow safe working practices or failure to promptly report an injury • Sleeping on the job • Violations of the District Computer Use and E-mail Policies V. EMPLOYEE CONDUCT Employees are expected to observe certain standards of job performance and good conduct. When performance or conduct does not meet District standards, the District will endeavor, when it deems appropriate, to provide the employee a reasonable opportunity to correct the deficiency. This opportunity could be in the form of an informal discussion, formal warning, or written reprimand. Page 67 of 161 18 South Coast Water District Oct. 2022 The rules set forth below are intended to provide employees with fair notice of what is expected of them. However, such rules cannot identify every type of unacceptable conduct and performance. Therefore, employees should be aware that conduct not specifically listed below but which adversely affects or is otherwise detrimental to the interests of the District, other employees, or members of the public, may also result in disciplinary action. 5.1 Job Performance Employees are expected to: • Perform satisfactory work quality and quantity; • Maintain a good and cooperative attitude (rudeness or lack of cooperation are unacceptable); • Maintain good attendance (excessive absenteeism, tardiness, or abuse of break and lunch privileges are unacceptable); • Follow instructions and District policies and procedures; and • Follow established safety regulations. 5.2 Employee Misconduct Employee misconduct includes, but is not limited to the following: • Insubordination; • Dishonesty; • Theft; • Discourtesy; • Misusing or destroying District property or the property of another on District premises; • Violating conflict of interest rules; • Disclosing or using confidential or proprietary information without authorization; • Falsifying or altering District records, including the application for employment; • Interfering with the work performance of others; • Altercations; • Using obscene, abusive, or threatening language or gestures; indifference or rudeness towards a customer, fellow employee, or vendor; any disorderly/antagonistic conduct on District premises; • Spreading malicious gossip and/or rumors; engaging in behavior which creates discord and lack of harmony; interfering with another employee on the job; restricting work output or encouraging others to do the same; • Discrimination, harassment, or retaliation of employees or members of the public; • Being under the influence of, dispensing, distributing, using, or possessing alcohol or illegal controlled substances on District property or while conducting District business; • Gambling on District premises or while conducting District business; Page 68 of 161 19 South Coast Water District Oct. 2022 • Sleeping during scheduled working hours; • Leaving the job without authorization; • Exhibiting excessive or unexcused absenteeism or tardiness; and/or failure to promptly report an absence or late arrival to your supervisor; • Possessing a personal firearm or other dangerous weapon on District property or while conducting District business. “Dangerous weapons” include firearms, explosives, knives, and other weapons that might be considered dangerous or that could cause harm; • Being convicted of a crime that indicates unfitness for the job or raises a threat to the safety or well-being of the District, its employees, customers, or property; • Failing to report to the District, within five business days, any conviction under any criminal drug statute for a violation occurring in the workplace; • Smoking and vaping is prohibited in District owned or operated buildings, District vehicles, or within 20 feet of an entrance to a public or District owned building. Employees must comply with any City regulations related to smoking/vaping; • Smoking and vaping is prohibited while performing job duties and will only be permitted while on breaks or during lunch in designated areas; • Fraudulent activities including but not limited to the following: misappropriation of District assets; improprieties in the handling or reporting of money transactions; authorizing or receiving payment for goods not received or services not performed; computer-related activity involving unauthorized alteration, destruction, forgery, or manipulation of data or misappropriation of District-owned software; misrepresentation of information on documents; • Possessing, claiming to possess, brandishing, or using a weapon while on District premises or engaged in District business; • Engaging in behavior that creates a reasonable fear of injury in another person; • Violating security or safety rules or failing to observe safety rules or the District safety practices; failing to wear required safety equipment; tampering with the District’s equipment or safety equipment; • Using District property and supplies, particularly for personal purposes in an excessive, unnecessary, or unauthorized way. 5.3 Disciplinary Action “Disciplinary Action” means action taken by the Department Manager or Supervisor or designee for disciplinary reasons, pursuant to these Policies. Nothing in these Policies requires imposition of disciplinary action in any particular order. The use of each disciplinary action depends on the severity of the misconduct and/or repetition of misconduct. Disciplinary actions include: • Informal discussion; • A formal warning; • A written reprimand; • Disciplinary suspension; Page 69 of 161 20 South Coast Water District Oct. 2022 • Reduction in pay; • Demotion; or • Termination. 5.4 Disciplinary Procedures 5.4.1 Disciplinary Actions Subject to Appeal A disciplinary suspension without pay, a reduction in pay, a demotion, or a termination can be appealed pursuant to the following procedure: 5.4.2 Written Notice The employee’s Manager/Supervisor shall give the employee a written notice of the proposed disciplinary action at least five working days prior to the effective date. The written notice shall be personally delivered to the employee or sent by certified mail to the employee’s last known address. The notice generally will include the following information: • A description of the proposed action to be taken and its proposed effective date or dates; • The specific grounds and particular facts upon which the action is proposed to be taken; • The employee’s right to receive a copy of the written materials alleged to support the proposed actions; • A statement advising the employee of the right to respond, orally or in writing, within five working days after the receipt of the written notice; and • A statement that failure to respond by the deadline stated in the notice shall constitute a waiver of the right to respond prior to final discipline being imposed. 5.4.3 Notice of Action Taken Within a reasonable time after the receipt of the employee’s response, if any, or of the expiration of employee’s time to respond, the Manager/Supervisor shall issue a Notice of Action Taken. The Notice of Action Taken shall state the action taken, the reasons therefore, and the discipline imposed. 5.4.4 Appeal of Notice of Action Taken An employee who wishes to appeal the Notice of Action Taken must do so by giving the General Manager written notice of appeal within five working days of the date of the Notice of Action Taken. If no written appeal is received within five working days, the decision to discipline is final. If the employee submits a timely written appeal, then an appeal hearing shall be scheduled to take place at least ten working days after the appeal is filed. The General Manager or his/her designee shall serve as the Hearing Officer. Page 70 of 161 21 South Coast Water District Oct. 2022 The Hearing Officer shall rule on the admission or exclusion of evidence. The hearing shall proceed in the following order, unless the Hearing Officer, for special reason, otherwise directs: (1) The party imposing discipline shall be permitted to make an opening statement. (2) The appealing party shall be permitted to make an opening statement. (3) The party imposing disciplinary action shall produce the evidence on his/her defense and offer his/her evidence in support thereof. (4) The party appealing may then open his/her defense and offer his/her evidence in support thereof. (5) The parties may then, in order, respectively offer rebutting evidence only, unless the Hearing Officer for good reason, permits them to offer evidence upon their original case. (6) Closing arguments or closing written briefs shall be permitted at the discretion of the Hearing Officer. The Hearing Officer shall determine relevancy, weight, and credibility of testimony and evidence, and shall base his/her findings on a preponderance of evidence. The Hearing Officer shall render his/her findings and recommendations as soon after the conclusion of the hearing as possible and in no event later than thirty calendar days after conducting the hearing, unless otherwise agreed to by the parties. The General Manager may either adopt the recommendations or findings or modify the findings based on evidence in the record. The General Manager shall issue the decision no later than ten working days after the Hearing Officer has issued his/her recommendations. The General Manager’s decision is final. 5.4.5 Employee Rights and Restrictions • Right to Representation: The employee has the right to a representative throughout the pre-disciplinary process, at the employee’s own cost. That representative is chosen by the employee and may be an attorney, an outside representative, or another District employee. If a District employee is selected as the representative, that employee’s Department Manager/Supervisor must be notified in order to obtain permission to be absent from assigned duties necessary to make representation. Such permission shall not be unreasonably withheld. • Right to Investigate: The employee and the employee’s representative wishing to enter a work area for the purpose of investigating the notice of proposed discipline must first obtain permission to do so from Human Resources. Any investigation shall be conducted on non-working time unless the Department Manager/Supervisor has granted prior approval to use District time. Permission in either case shall not be unreasonably withheld, giving consideration to the work of the department and occupational safety. Page 71 of 161 Page 72 of 161 Page 73 of 161 Page 74 of 161 EXillBIT "A" General Governance Guidelines Policy of the Board of Directors South Coast Water District Reference: This policy is a Governance Policy appended by the approval of the South Coast Water District Board of Directors to Resolution No. 11-04/05, as Exhibit "A" thereto. Title: General Governance Guidelines Date of Adoption: June 3, 2005 A core value of Board of Director service is the responsibility of each member of the Board to work with other Board members and the General Manager in a manner that reflects responsibility to the group process and to group decision-making. This is a core value of the Board because no individual member of the Board may act unilaterally in setting policy for the District or represent themselves as speaking on behalf of the Board in other than approved policy. In support of each Board member's responsibility to work within the group, this Policy establishes acceptable standards for governance. The Policy addresses the role of the Board President, the General Manager, and the District Counsel in reporting to the Board with respect to adherence or failure to follow governance standards. The Policy sets guidelines for the Board President in each case where a Board member does not follow Board policies. The Policy sets guidelines for the Board President in taking corr ective action. GENERAL GOVERNANCE GUIDELINES I.The Board will cultivate a sense of group responsibility by working within the group: the Board and the General Manager. 2.Each member of the Board will honor the group decision process and should avoid internal or external commnnications that are disparaging of the final policy direction taken by the Board. 3.Members must represent loyalty without conflict to the interests of the District as established by the Board decision process. This accountabilit y supersedes any conflicting advocacy or interest, other group interest, membership or other affiliation. It also supersedes the personal interest of any Board member in acting as a consumer of the District's services. Where a conflict in loyalty is 1 Page 75 of 161 present, the Board member should absent himself or herself without comment from deliberation and voting. 4.No Board member will attempt to exercise individual authority over the organization by internal or external communications that are in conflict with Board policies. 5.Board members should refrain from activities such as making unscheduled visits to work sites or attempting to direct the course or scope of field operations. Action(s) that are outside of the scope of Board authority, when taken by an individual Director, may create personal liability. The District's insurance coverage(s) may not provide coverage for such directives and actions. Therefore, Board members should refrain from acting outside the scope of their collective policy setting authority. 6.The General Manager is the sole employee of the Board and reports directly to the Board. On a day to day basis the General Manager acts at the direction of the Board through communication with the Board President in his role as the selected representative of the Board. 7.The District Counsel in his or her role as legal advisor to the District may also report directly to the Board through the Board President. 8.Decisions or instructions of individual Board members are not binding on the General Manager, Executive Staff or the District Counsel, except in rare instances when the Board has specifically authorized such exercise of authority. 9.Board member interaction with outside parties, agencies, the media, local or regional authorities or jurisdictions, industry groups, non-government organization representatives, and other entities must recognize the limitation stated in item 8 above, and the inability of the Board member to speak for the Board or the District, except to repeat explicitly stated Board decisions. I 0. Board member interaction with the General Manager and with staff must recognize the lack of authority vested in the individual Board member except when explicitly Board authorized. 11.Members will commit to respect the confidentiality appropriate to issues of a sensitive nature or as required as a matter of legal prudence. 12.Each regular board meeting agenda will provide an opportunity to the Board and the General Manager to discuss Board Governance performance. The Board President, Board members, the General Manager, and District Counsel will be expected to monitor governance policy compliance, which will include comparison of Board activity to the policies set herein. 2 Page 76 of 161 EXHIBIT "B" Internal Communications Policy of the Board of Directors South Coast Water District Reference: This policy is a Governance Policy appended by the approval of the South Coast Water District Board of Directors to Resolution No. 11-04/05, as Exhibit "B" thereto. Title: Internal Communications Date of Adoption: June 3, 2005 A core value of Board of Director service is the responsibility of each member of the Board to recognize the General Manager as the Board's sole official connection to the District in its operations, achievements and conduct of business. It is also a core value of the Board that all individual Board member communications with District staff should reflect the professionalism becoming the Board and the dignity of the elected office. In support of each Board member's responsibility to work within the group, this Policy establishes acceptable standards for internal communications. INTERNAL COMMUNICATIONS Internal Communications include any communication with staff assi gned under the responsibility of the General Manager. The following standards apply to internal com munications: 1.Board mem bers should keep their speech courteous and respectful in all discussions with staff. 2.Board members will endeavor to observe decorum by respecting the boundaries of personal space. 3.Board members will refrain from openly criticizing one staff member in front of another staff person or the public. 4.Board member comment s and observations about performance of staff will be reserved for one-on-one discussion with the General Manager. 5.No individual Board member will give direction to staff. 6.All requests by individual Board members for staff actions should be routed first to the Board President for review with the General Manager. Examples 3 Page 77 of 161 of such individual Board member requests include: preparation of reports, calculations, production of documentation, copies of or research of file documents, review of outside materials, proposals or ideas, attendance at meetings, preparation of applications, work on new initiatives. 7.The Board President will coordinate with the General Manager regarding Board requests. Appropriate requests include: (i)information needed to supplement the knowledge of the Board member and improve policy decision­ making, and (ii) the work involved is appropriate to the benefits that may be derived from the information. 8.When making requests, Board members should keep in mind that all employees work under the supervision of senior supervisors and other management level employees carrying out assi gned duties. Therefore, work is already in progress for each employee's area of responsibility. Accordingly, Board member requests will be addressed in as timely a manner possible in light of ongoing responsibilities. 9.Board members may work directly with administrative staff under supervision of the Director of Administration as necessary for activities attendant to Board operations, for example: completing payment requests, providing reimbursement information, coordinating meeting availability, conference scheduling, work for committee assignments, making commu nications and setting appointments with the General Manager or the District Counsel. 10.Each member of the staff is responsible for keeping the work environment safe and productive; therefore, Board members should refrain from approaching employees directly to ask questions about work in progress, work assignments or with requests for information. Examples include: unannounced visits at field sites, and stopping employees in halls, work areas, or parking areas to request information. 11.District staff will accommodate reasonable Director request for construction or facility site inspections; provided, however, that all site visits should be arranged in advance through the General Manager or his designee. 12.Executive Staff [Director of Engineering, Director of Operations, Director of Administration/District Counsel] are available to answer questions or provide information when the General Manager is not available; however, Board members shall call in advance to set a time to discuss the item with the Executive Staff (walk in visits, on an unannounced basis, are not in compliance with this policy). Executive Staff may review questions and requests of Board members with the General Manager and the Board President before responding. 13.The time commitments of the General Manager, Executive Staff and District Counsel will be respected, and questions or requests must be stated succinctly and without intent to direct a position on the part of staff. 4 Page 78 of 161 EXHIBIT "C" External Commuuicatious Policy of the Board of Directors South Coast Water District Reference: This policy is a Governance Policy appended by the approval of the South Coast Water District Board of Directors to Resolution No. 11-04/05, as Exhibit "C" thereto. Title: External Communications Date of Adoption: June 3, 2005 A core value of Board of Director service is the responsibility of each member of the Board to recognize the benefits of a positive working relationship with the media and other organizations and agencies. It is a core value of the Board that appointed representatives of the Board are respected in their roles as spokespersons or official contacts for the District as assigned by the Board President. It is a core value of the Board that statements made by individual Board members to the media or before external groups should reflect the group decision-making process by reference to explicitly stated Board positions, which should be clearly differentiated from individual opinion. In support of each Board member's responsibility to work within the group, this Policy establishes additional standards for external communications. EXTERNAL COMMUNICATIONS External communications are statements made by individual Board members to the media or before other organizations or agencies. The following standards supplement Dis trict Resolution No. 22-99-00, District Policies Regarding Official Public Positions. The following standards apply to external communications: l.Upon receipt of a media inquiry, it is within each Board member's discretion to provide a response as an individual member of the Board; provided, however, that Board members should also ask the reporter to contact the District's Public Information Officer (PIO). As a courtesy, the Board member should then contact the Public Information Officer. 2.The General Manager or his designee is the official spokesperson for the District to the media. In most cases, the General Manager's designee will be 5 Page 79 of 161 the PIO. The General Manager and the PIO will each inform the other of all media inquiries. 3.The General Manager or his designee is the official spokesperson for the Dist rict in all contacts with the staff of federal, state, connty, city or local government agencies. 4.Board members are expected to have contact with other elected officials, but will refrain from making direct contact with the staff of federal, state, county, city or local government agencies (collectively, "agency") on any matter involving the District. 5.When commenting before the sitting body of another agency on any matter involving the District, Board members will respect the role of the Board appointed represen tative to that agency to speak first on behalf of the District. Board members will refrain from usurping the role of the Board by attempting to formulate or represent positions of the District, unless the statement communicates an explicitly stated Board decision or final Board action. 6.As required by Resolution 22-99/00, Board members appearing before any group of persons or organized entity shall refrain from identifying themselves as a District Board member unless they are the appointed spokesperson for the District to that body. 6 Page 80 of 161 EXHIBIT "D" Governance Compliance Monitoring Process Policy of the Board of Directors South Coast Water District Reference: This policy is a Governance Policy appended by the approval of the South Coast Water District Board of Directors to Resolution No. 11-04/05, as Exhibit "D" thereto. Title: Governance Compliance Process Date of Adoption: June 3, 2005 As stated in the General Governance Guidelines, a core value of Board of Director service is the responsibility of each member of the Board to work with other Board members and the General Manager in a manner that reflects responsibility to the group process and to group decision-making. In support of each Board me mber's responsibility to work within the group, this Policy establishes a compliance monitoring process that addresses the role of the Board President, the General Manager, and the District Counsel with respect to responding to Board conduct that may fail to adhere to the standards approved by the Board under Resolution 11-04/05. The Governance Compliance Monitoring Process allows for evaluation of actions and works in conjunction with the Corrective Action Policy to provide a meaningful response to failures to follow established and approved Board governance policies. GOVERNANCE ROLE OF THE BOARD PRESIDENT The Role of the Board President is: I.To ensure the Board and its members conduct District business consistent with the Board's rules and those imposed by outside laws or other legitimate business requirements. 2.To represent the Board to outside parties in announcing Board-stated positions. 3.To state the President's decisions (within those areas delegated to the President). 4.He or she may delegate his or her authority, but remains accountable for its use. 5.To ensure that Board communications are made within those areas that are the purview of the Board (i.e. policy, current Board decisions) and not within the purview of the General Manager (i.e. operations, personnel). 6.To ensure ethical behavior and business like decorum and communications by Board members. 7.To ensure Board Procedures as set forth in Resolution No. 12-03/04 is followed for the efficient conduct of meetings and the respectful use of the time of other Board members and staff. 1 Page 81 of 161 8.To accept Board member requests for staff actions. Examples of individual Board member requests that should be routed through the Board President include: preparation of reports, calculations, production of documentation, copies of or research of filed documents, review of outside materials, proposals or ideas, attendance at meetings, preparation of applications, work on new initiatives. 9.To coordinate with the General Manager regarding Board requests. Appropriate requests include: (i) information is needed to supplement the knowledge of the Board member and improve policy decision-making, and (ii) the work involved is appropriate to the benefits that may be derived from the information. GOVERNANCE ROLE OF THE GENERAL MANAGER The Role of the General Manager is: 1.To ensure a safe work environment that is free of harassment and conditions that foster inequitable treatment, discrimination, intolerance or which are unfair, undignified, disorganized or unclear. 2.To carry out the duties of the General Manager in accordance with the requirements and authorization set forth in Resolution No. 15-00/01, A Resolution of the Board of Directors of South Coast Water District Establishing the Responsibilities and Authorities of the District's General Manager. 3.To advise the Board if, in the General Manager's opinion, the Board is not in compliance with its own policies. 4.To report in writing to the Board in a timely manner on actual or anticipated material noncompliance with any policy of the Board. GOVERNANCE ROLE OF THE DISTRICT COUNSEL The Role of the District Counsel is: 1.To act as legal advisor to the District and from time to time report directly to the Board as nec essary to serve the best interests of the District. 2.To monitor the work environment and report to the General Manage r any conditions that foster inequitable treatment, discrimination, intolerance, harassment, or which are unfair, undignified, disorganized or unclear. 3.To cause both the General Manager and the Board President to be informed if, in the District Counsel's opinion, the Board is not in compliance with its own policies. 4.The District Counsel shall report in writing to the Board and the General Manager on actual or anticipated material noncompliance with any policy of the Board.2 Page 82 of 161 EXIITBIT "E" Governance Corrective Action Policy of the Board of Directors South Coast Water District Reference: This policy is a Governance Policy appended by the approval of the South Coast Water District Board of Directors to Resolution No. 11-04/05, as Exhibit "E" thereto. Title: Governance Corrective Action Date of Adoption: June 3, 2005 As stated in the Governance Compliance Process, Board adherence to or failure to follow the governance standards adopted under Resolution 11-04/05 creates a need for Board response. This policy compliments the Compliance Monitoring Process with a set of guidelines for corrective response and action to be taken by the Board President. Corrective Response to Promote Governance Policy Compliance On receipt of a communication of an incident of non-adherence to Board Governance Policies as adopted under Resolution 11-04/05, the Board President shall utilize an appropriate response in light of the following factors: (i) the degree of the misrepresentation on an issue, item or topic of concern to the District; and/or (ii) the level of non-ad herence to existing policies; and/or (iii) the potential for liability created by the Board member; and/or (iv) the number of prior similar occurrences. The Board President may, within his or her discretion, take one or more of the following responsive actions: 1.Notify the Board member either orally or in writing of the action or activity that is in conflict with Board Governance Policy. 2.Meet with or call the Board member to discuss the incident and investigate as necessary to determine whether the Policy was violated. The General Manager or District Counsel may accompany the Board President at his or her request. 3.Notify the Board member in writing of any potential liability created by the incident. 4.Direct that the Board, the General Manager and the District Counsel be informed of the incident in writing. 5.Place notice of the offense on a Board Agenda for discussion of the Board. 6.Issue appropriate sanctions, including: a.Dismissal from Committee service for all or a portion of the remaining year. 3 Page 83 of 161 b.Dismissal from outside agency appointments. c.Cancel District paid conference attendance or prohibit District paid conference attendance for all or a portion of the remaining year. Other Corrective Actions: On receipt of a communication from any Board member, the General Manager or the District Counsel of an incident of non-adherence to this Policy, the Board President may take an appropriate corrective action, in his or her discretion: 1.With respect to Internal Communications, the General Manager may be inshucted to inform the affected employee and his or her supervisor that the offeuding communication was outside of approved District policy and is not to be followed. 2.With respect to External Communications, the Board President will communicate that the Board member acted outside of the scope of their authority. The Board President will also notify the party in receipt of the unauthorized communication of the proper contact within the District to his or her agency or entity. 3.The Board President will work with District Counsel to take such other steps as may be legally appropriate to correct the matter. 4 Page 84 of 161 1.15 EQUAL EMPLOYMENT POLICY AND HARASSMENT: The District is an equal opportunity employer. The District prohibits unlawful discrimination against employees or applicants based on race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, military status, veteran status, uniformed service member status, sexual orientation, transgender identity, citizenship status, pregnancy, or any other consideration made unlawful by federal, state, or local laws. Any technique or procedure used in recruitment and selection of Employees shall be designed to measure only the job related qualifications of applicants. No recruitment or selection technique shall be used which, in the opinion of the District, is not justifiably linked to successful job performance. 1.15.1 Policy Against Harassment: The District prohibits harassment of Employees in the workplace based on race, color, national origin, ancestry, religion, sex, sexual orientation, marital status, age, physical or mental handicap or medical condition. Harassment includes all forms of offensive or unwelcome physical or verbal conduct that interferes with an Employee’s work or creates an offensive or hostile working environment. 1.15.2 Sexual Harassment: Sexual harassment of all types is specifically prohibited. Sexual harassment of Employees in the workplace is illegal, unacceptable, and will NOT be tolerated. Under state and federal law, sexual harassment is defined as unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. It is illegal whenever (a) submission to such conduct is made a condition of employment, either expressly or implied, (b) submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting that individual, or (c) such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile or offensive working environment. Examples of sexual harassment include but are not limited to: unwelcome sexual propositions or marriage proposals; unwelcome hugging, kissing or other offensive physical contact of a sexual nature; lewd gestures, remarks or innuendos; unwelcome discussions of sexual practices or anatomy; and sexually offensive posters, photographs, drawings, cartoons, jokes, stories, nicknames or comments about appearance. 1.15.3 Malicious Complaints: While the District vigorously defends its Employees’ right to work in an environment free of sexual harassment, it also recognizes that false accusations of sexual harassment can have serious consequences. Accordingly, any Employee who is found, through the District’s investigation, to have knowingly falsely accused another person of sexual harassment will be subject to appropriate Disciplinary Action, up to and including Dismissal. 1.15.4 Application of Policy: This policy applies to all Supervisors of the District, as well as to co- Employees, elected and appointed officials, customers, vendors, and other persons at the workplace whom the District knows or has reason to know are violating this policy. All District personnel are expected to avoid any conduct that could be construed as harassment by any Employee. Appropriate corrective action will be taken against all offenders, including discipline or Dismissal of Supervisors or Employees who violate this policy. 1.15.5 Reporting Harassment: Any Employee who believes he or she has been unlawfully harassed should bring the matter to the attention of the Employee’s Supervisor immediately, and provide a full Serrano Water District Page 85 of 161 and accurate report of the underlying facts. Where the Employee’s Supervisor is the alleged harasser, the Employee should bring the matter to the attention of the Supervisor’s superior or the General Manager or the Personnel Committee if the General Manager is the alleged harasser. Employees are urged to report to the Employee’s Supervisor, but this is not required if the Employee feels uncomfortable in doing so, or if the Employee believes the Supervisor is the harasser. In all cases, Employees are free to report such problems directly to the Personnel Officer or General Manager. Upon notification of a harassment complaint, the Personnel Officer, or other person acting in that capacity, shall promptly conduct an investigation of the complaint and supervise and/or investigate the complaint. This investigation will generally include interviews with (1) the complainant; (2) the accused harasser; and (3) any other person the Personnel Officer, or person acting in that capacity, has reason to believe has relevant knowledge concerning the complaint. This may include victims of similar conduct. All such reports will be kept confidential to the greatest extent possible, but some disclosure will be necessary to conduct a proper investigation. In each case, the Employee reporting the problem will receive a written reply from the Personnel Officer, or other person conducting the investigation, on the summary results of the investigation and the action taken, if any. Any Employee who is not satisfied with the reply may appeal to the General Manager and will receive a reply in writing. The outline for how an investigation will be conducted is attached hereto as Exhibit “A.” The California Fair Employment and Housing Act (“FEHA”) (California Govt. Code Sections 12900 et seq.) prohibits unlawful sexual harassment, as well as other forms of discrimination, based on ancestry, sex, sexual orientation, race, color, national origin, religious creed, age, physical disability, mental disability, marital status and medical condition. Employees may file complaints about sexual harassment or other illegal employment discrimination with the California Fair Employment Housing Commission (1390 Market Street, Suite 401, San Francisco, CA 94102, Telephone: (415) 557-2325) or with the California Department of Fair Employment and Housing (28 Civic Center Plaza, Room 538, Santa Ana, CA 92701, Telephone: (714) 558-4159). 1.15.6 No Retaliation: No Employee shall be subject to any form of retaliation for reporting any violation, or participating in any investigation under this policy, provided that they have done so truthfully and in good faith. Employees who believe they have been retaliated against in violation of this policy may utilize the Grievance procedure described herein. This policy also applies to unlawful harassment based on any of the other illegal criteria set forth in the District’s Equal Employment Policy, including race, color, religion, national origin, age, sex, sexual orientation, disability, marital status, or physical or mental condition. The District will NOT tolerate any unlawful harassment or discrimination in employment. Violation of this policy can result in immediate Dismissal of employment or other disciplinary action. Serrano Water District Page 86 of 161 1 ETHICS AND CONFLICTS OF INTERESTS POLICY; ADOPTED ON FEBRUARY 15, 2008; AMENDED ON NOVEMBER 17, 2017 BY RESOLUTION 2017-11-03; AMENDED ON SEPTEMBER 2, 2020 BY RESOLUTION 2020-09-04 ETHICS AND CONFLICTS OF INTEREST POLICY POLICY The policy of the District is to maintain the highest standards of ethics from its District Officials, its General Manager and its employees which include all permanent, part-time, temporary, and contract employees, including volunteers (“District Officials”). The proper operation of the District requires that decisions and policy be made apparently and transparently, that a public office not be used for personal gain, and that all individuals associated with the District remain impartial and responsible towards the public. Accordingly, it is the policy of the District that District Officials will maintain the highest standard of personal honesty and fairness in carrying out their duties. This policy sets forth the minimal ethical standards to be followed by the District Officials. Additional standards to be followed by District employees specifically will mirror this policy and will be set forth in the District’s Personnel Manual. The objectives of this policy are to (1) provide continued guidance for dealing with ethical issues, (2) heighten awareness of ethics and values as critical elements of the Board’s policy, and (3) maintain the District’s open ethical decision-making and values-based management. PROCEDURES Responsibilities of Public Office District Officials are obligated to uphold the Constitution of the United States and the Constitution of the State of California. District Officials will comply with applicable laws regulating their conduct, including conflicts of interest, financial disclosure and open government laws. District Officials will work in cooperation with other public Officials unless prohibited from so doing by law or officially recognized confidentiality of their work. (Gov. Code § 1360; Article 20, § 3 of the California Constitution.) Fair and Equal Treatment District Officials will not, in the performance of their duties, discriminate against any person on the basis of race, religion, color, creed, age, marital status, national origin, ancestry, sex, sexual preference, medical condition or disability. A District Official will not grant any special consideration, treatment or advantage to any person or group beyond that which is available to every other person or group in similar circumstances. (See, e.g., Article 1, § 31 of the California Constitution; Age Discrimination in Employment Act of 1967 (29 U.S.C., § 621-634); Americans with Disabilities Act of 1990 (42 U.S.C., § 12101 et. seq.); Fair Employment and Housing Act (Gov. Code, § 12900 et seq.); Rehabilitation Act of 1973 (29 U.S.C., § 701 et. seq.); Title VII of the Civil Rights Act of 1964 (42 U.S.C., § 2000 et. seq.); Labor Code § 1102.1.) Proper Use and Safeguarding of District Property and Resources A District Official shall not use or permit others to use District resources for personal purposes. “Personal purpose” means those activities which are for personal enjoyment, private gain or advantage, or are not related to District business. “Personal purpose” does not include the incidental and minimal use of public resources such as equipment or office space for personal purposes, including an occasional telephone call. A District Official will not ask or require a District employee to perform services for the personal convenience or profit of a District Official or another employee. Each District Official must protect and properly use any District asset within his or her control, including information recorded on paper or in electronic form. District Officials will safeguard District property, equipment, moneys and assets against unauthorized use or removal, as well as from loss due to criminal act or breach of trust. Santa Margarita Water District Page 87 of 161 2 ETHICS AND CONFLICTS OF INTERESTS POLICY; ADOPTED ON FEBRUARY 15, 2008; AMENDED ON NOVEMBER 17, 2017 BY RESOLUTION 2017-11-03; AMENDED ON SEPTEMBER 2, 2020 BY RESOLUTION 2020-09-04 District Officials are responsible for maintaining written records, including expense accounts, in sufficient detail to reflect accurately and completely all transactions and expenditures made on the District’s behalf, in accordance with the District’s policy for reimbursement of expenses of District Officials. (Article 16, § 6 of the California Constitution; Gov. Code, § 8314; Pen. Code, § 424.) Use of Confidential Information A District Official is not authorized, without approval of the Board of Directors, to disclose information that qualifies as confidential information under applicable provisions of law to a person not authorized to receive it, that (1) has been received for, or during, a closed session meeting of the Board, (2) is protected from disclosure under the attorney/client or other evidentiary privilege, or (3) is not required to be disclosed under the California Public Records Act. This section does not prohibit any of the following: (1) making a confidential inquiry or complaint to a District attorney or grand jury concerning a perceived violation of law, including disclosing facts to a District attorney or grand jury that are necessary to establish the alleged illegality of an action taken by the District an elected Official or employee, (2) expressing an opinion concerning the propriety or legality of actions taken by the District in closed session, including disclosure of the nature and extent of the allegedly illegal action, or (3) disclosing information acquired by being present in a closed session that is not confidential information. Prior to disclosing confidential information pursuant to (1) or (2), above, however, a District Official will first bring the matter to the attention of the District to provide the Board an opportunity to cure an alleged violation. A District Official who willfully and knowingly discloses, for pecuniary gain, confidential information received by him or her in the course of his or her duties may be guilty of a misdemeanor under Government Code section 1098. (Gov. Code, § 54963.) Financial Conflicts of Interest A District Official will not have a financial interest in a contract with the District, or be a purchaser at a sale by the District or a vendor at a purchase made by the District, unless the District Official’s participation is authorized under specific Government Code exemptions. (Gov. Code §§ 1090, et seq.) A District Official will not participate in the discussion, deliberation or vote on a matter before the Board of Directors, or in any way attempt to use his or her position to influence a decision of the Board, if he or she has a prohibited financial interest with respect to the matter, as defined in the Political Reform Act. (Gov. Code §§ 81000, et seq.) Generally, a District Official has a financial interest in a matter if it is reasonably foreseeable that the Board decision would have a material financial effect (as defined by the Fair Political Practices Commission (“FPPC”) regulations, that is distinguishable from the effect on the public generally on five specific economic interests (Gov. Code, § 87100 et seq.): • A business entity in which the District Official has a direct or indirect investment of $2,000 or more; • Real property in which the District Official has a direct or indirect interest worth $2,000 or more; • A source of income of the District Official amounting to $500 or more within 12 months before the Board decision; Santa Margarita Water District Page 88 of 161 3 ETHICS AND CONFLICTS OF INTERESTS POLICY; ADOPTED ON FEBRUARY 15, 2008; AMENDED ON NOVEMBER 17, 2017 BY RESOLUTION 2017-11-03; AMENDED ON SEPTEMBER 2, 2020 BY RESOLUTION 2020-09-04 • A source of gifts to the District Official amounting to the annual gift limit 1 or more within 12 months before the Board decision; or • A business entity in which the District Official holds a position as a director, trustee, officer, partner, manager or employee.2 If a member of the Board believes that he or she may be disqualified from participating in the discussion, deliberations or vote on a particular matter due to a conflict of interest, the following procedure will be followed: (1) If the District Official becomes aware of the potential conflict of interest before the Board meeting at which the matter will be discussed or acted on, the District Official will notify the General Manager and the District’s legal counsel of the potential conflict of interest, so that a determination can be made whether it is a disqualifying conflict of interest; (2) If it is not possible for the District Official to discuss the potential conflict with the General Manager and the District’s legal counsel before the meeting, or if the District Official does not become aware of the potential conflict until during the meeting, the District Official will immediately disclose the potential conflict during the Board meeting, so that there can be a determination whether it is a disqualifying conflict of interest; and (3) Upon a determination that there is a disqualifying conflict of interest, the District Official (1) must publicly identify the financial interest that gives rise to the conflict or potential conflict (2) must not participate in the discussion, deliberation or vote on the matter for which a conflict of interest exists, which will be so noted in the Board minutes, and (3) must leave the room until after the discussion, vote and any other disposition of the matter is concluded, unless the matter has been placed on the portion of the agenda reserved for uncontested matters. The District Official may speak on the issue during the time the general public speaks on the issue. A District Official will not recommend the employment of a relative by the District. In addition, a District Official will not recommend the employment of a relative to any person known by the District Official to be bidding for or negotiating a contract with the District. Adopted Conflict of Interest Code The District has adopted a Conflict of Interest Code (the "Code") pursuant to the requirements of the Political Reform Act of 1974, Government Code section 81000 et seq. (the "Act"). The Code sets forth the required provisions for the disclosure of assets and income, designates the positions subject to the disclosure provisions of the Code, establishes the list of disclosure categories specifying the types of assets and income required to be disclosed by each designated position to which categories are assigned, and provides for the disqualification of designated positions from acting where a conflict of interest exists. The requirements of the Code are in addition to other requirements of the Act and to other state and local laws pertaining to conflicts of interest and have the force and effect of law. Designated positions violating any provision of the Code are subject to the administrative, criminal and civil sanctions provided by the Act. Additionally, a decision in relation to which a violation of the disqualification provisions of the Code or Government Code section 87100 has occurred may be set aside as void pursuant to Government Code section 91003. 1 See FPPC Reg. 18940.2. The annual gift limit is adjusted biennially every odd-numbered year. 2 Personal Financial Effect. If none of the five economic interests are involved, then any District decision resulting in any measurable financial benefit or loss from the decision is material. Santa Margarita Water District Page 89 of 161 4 ETHICS AND CONFLICTS OF INTERESTS POLICY; ADOPTED ON FEBRUARY 15, 2008; AMENDED ON NOVEMBER 17, 2017 BY RESOLUTION 2017-11-03; AMENDED ON SEPTEMBER 2, 2020 BY RESOLUTION 2020-09-04 All officers and designated positions are directed to refer to the District’s Conflict of Interest Code for these specific requirements. The Conflict of Interest Code is held in the office of the Secretary to the Board of Directors as the District’s Filing Officer/Official. District Officials and designated positions shall annually file a Statement of Economic Interests as specified in the District’s Code. District Officials and designated positions shall, within 30 days after assuming office/employment or leaving office/employment, file a Statement of Economic Interests as specified in the District’s Code. Gifts Gifts to District Officials and employees are subject to the prohibitions and limitation as set forth in the District’s Conflict of Interest Code and the Regulations of the Fair Political Practices Commission (“FPPC”). (Gov. Code, §§ 1090 et seq., 81000 et seq., and 87105; Pen. Code, §§ 68 and 70.). Soliciting Political Contributions District Officials are prohibited from soliciting political funds or contributions at District facilities, or from District employees. Soliciting Political contributions by District Officials is subject to Government Code § 3205. A District Official will not use the District’s seal, trademark, stationary or other indicia of the District’s identity, or facsimile thereof, in any solicitation for political contributions contrary to state or federal law. (Gov. Code, § 3205.) Incompatible Offices and “Revolving Door” Policy Any District Official appointed or elected to a public office of another public entity, the duties of which may require action contradictory or inconsistent with the interest of the first entity (as determined under applicable law), will resign from the former office. (73 Ops.Cal.Atty.Gen. 357 (1990); see also Gov. Code, § 53227.) For a period of one year after leaving office, District Officials may not represent for compensation any other person or entity before the District or make any oral or written communication, if the appearance or communication is made for the purpose of influencing any action or proceeding as prohibited under Government Code section 87406.3. For purposes of this section, “represent” will mean for compensation to actively support or oppose a particular decision in a proceeding by lobbying in person, orally, or in writing, the officers or employees of the District or otherwise acting to influence the officers of the District. Nothing in this section is intended or will be applied to prevent a former District Official from participating in meetings of the District in the same manner as other members of the public. (FPPC Reg. 18746.3.) Santa Margarita Water District Page 90 of 161 5 ETHICS AND CONFLICTS OF INTERESTS POLICY; ADOPTED ON FEBRUARY 15, 2008; AMENDED ON NOVEMBER 17, 2017 BY RESOLUTION 2017-11-03; AMENDED ON SEPTEMBER 2, 2020 BY RESOLUTION 2020-09-04 Improper Activities and the Reporting of Such Activities; Protection of “Whistle Blowers” The General Manager has primary responsibility for (1) ensuring compliance with the District’s Personnel Manual and ensuring that District employees do not engage in improper activities, (2) investigating allegations of improper activities, and (3) taking appropriate corrective and disciplinary actions. The District has a duty to ensure that the General Manager is operating the District according to law and the policies approved by the Board. District Officials are encouraged to fulfill their obligation to the public and the District by disclosing to the General Manager to the extent not expressly prohibited by law, improper activities within their knowledge. District Officials will not interfere with the General Manager’s responsibilities in identifying, investigating and correcting improper activities, unless the Board determines that the General Manager is not properly carrying out these responsibilities. Nothing in this section affects the responsibility of the Board to oversee the performance of the General Manager. A District Official will not directly or indirectly use, or attempt to use, the District or the influence of his or her position for the purpose of intimidating, threatening, coercing, commanding or influencing any other person for the purpose of preventing such person from acting in good faith to report or otherwise bring to the attention of the General Manager or the Board any information that, if true, would constitute: a work- related violation by a District Official or District employee of any law or regulation, gross waste of District funds, gross abuse of District, a specified and substantial danger to public health or safety due to an act or omission of a District Official or employee, use of a District office or position or of District resources for personal gain, or a conflict of interest of a District Official or District employee. A District Official will not directly or indirectly use, attempt or threaten to use the District or influence of his or her position for the purpose of taking any action as a reprisal against a District Official who reports or otherwise brings to the attention of the General Manager any information regarding the subjects described in this section. Any person who believes that he or she has been subjected to any action prohibited by this section may file a confidential complaint with (1) the General Manager, or (2) a member of the Board of Directors if the complaint involves the conduct of the General Manager, who will thereupon refer the matter to the full Board to investigate the complaint. Upon the conclusion of the investigation, the General Manager (or the Board in the case of a complaint against the General Manager) will take appropriate action consistent with the District’s Personnel Manual and applicable law. (Lab. Code, § 1102.5, et seq., and Gov. Code, §§ 53298 and 53298.5.) Compliance with the Brown Act The members of the Board of Directors, and persons elected but who have not yet assumed office as members of the Board, will fully comply with the provisions of the State’s open meeting law for public agencies (the Brown Act). The Board has adopted Bylaws to guide the Board in ensuring that Board decisions are made during meetings of the Board that are open to the public, in compliance with the Brown Act. (Gov. Code, §§ 54950 et seq., 54952.1 and 54959.) District Officials’ Compensation and Expense Reimbursement The members of the Board of Directors will fully comply with the provisions of the Board’s policies on compensation and expense reimbursement. Changes in Compensation Changes in the compensation of the Board or District employees will require the approval of the Board during an open meeting of the Board held within sixty days prior to the effective date of the change. Santa Margarita Water District Page 91 of 161 6 ETHICS AND CONFLICTS OF INTERESTS POLICY; ADOPTED ON FEBRUARY 15, 2008; AMENDED ON NOVEMBER 17, 2017 BY RESOLUTION 2017-11-03; AMENDED ON SEPTEMBER 2, 2020 BY RESOLUTION 2020-09-04 Ethics Training Directors and designated positions shall receive at least two (2) hours of ethics training every two (2) years. (Gov. Code, § 53234 et seq.) Violation of Ethics Policy A perceived violation of this policy by a District Official should be referred to the Board of Directors for investigation, and consideration of any appropriate action warranted. A violation of this policy may be addressed by the use of such remedies as are available by law to the District, including but not limited to: (a) adoption of a resolution expressing disapproval of the conduct of the District Official who has violated this policy, (b) injunctive relief, or (c) referral of the violation to the District Attorney and/or the grand jury. Santa Margarita Water District Page 92 of 161 6 PERSONNEL RULES AND REGULATIONS; ADOPTED ON JANUARY 24, 2014, BY RESOLUTION 2014-01-02; AMENDED ON NOVEMBER 17, 2017 BY RESOLUTION 2017-11-03; AMENDED ON OCTOBER 5, 2022 BY RESOLUTION 2022-10-03 vi. Discipline If an investigation results in a recommendation to discipline an employee, the discipline will be taken in accordance with District policies and procedures. I. EMPLOYMENT POLICY EQUAL EMPLOYMENT OPPORTUNITY The District is committed to a policy of equal employment opportunity for applicants and employees. It is the District's intent to treat and evaluate all employees and applicants on the basis of merit, qualifications, and competence. Employment decisions shall comply with all applicable laws and regulations prohibiting discrimination in employment. 1. POLICY AGAINST DISCRIMINATION It is the policy of the District not to unlawfully discriminate against any applicant or employee on the basis of race, religious creed (including religious dress and grooming), color, national origin (including possessing a driver’s license granted under Section 12801.9 of the Vehicle Code), ancestry, physical disability, mental disability, medical condition, genetic information, marital status, domestic partner status, sex (including pregnancy or medical conditions related to pregnancy, childbirth or medical conditions related to childbirth, and breastfeeding or medical conditions related to breastfeeding), gender, gender identity, gender expression, age (40 or over), sexual orientation, or military and veteran status of any per son, or any other basis protected by local, state or federal law, or a perception the person has those characteristics or is associated with a person who has or is perceived to have those characteristics .. The Discrimination/Harassment policies apply to all employment practices including those below. The following is a non-exclusive list of various District employment practices in which this policy shall apply: • Advertisements • Applications and interviews • Licensing or certification • Referral by employment agencies • Salary, classification and duties • Hiring, transferring, promoting, upgrading, demoting • Working conditions or privileges of employment • Participation in a training or apprenticeship program, employee organization or union No employee shall aid, abet, compel, coerce or conspire to discharge or cause another employee to resign because of race, religious creed (including religious dress and grooming), color, national origin (including possessing a driver’s license granted under Section 12801.9 of the Vehicle Code), ancestry, physical disability, mental disability, medical condition, genetic information, marital status, domestic partner status, sex (including pregnancy or medical conditions related to pregnancy, childbirth or medical condit ions related to childbirth, and breastfeeding or medical conditions related to breastfeeding), gender, gender identity, gender expression, age (40 or over), sexual orientation, or military and veteran status of any person , or any other basis protected by local, state or federal law, or a perception the person has those characteristics or is associated with a person who has or is perceived to have those characteristics... 2. POLICY AGAINST HARASSMENT As part of its commitment to equal opportunity, the District is committed to providing a work environment free of harassment, discrimination, retaliation and disrespectful or other unprofessional conduct based on race, religious creed (including religious dress and grooming), color, national origin (including possessing a driver’s license granted under Section 12801.9 of the Vehicle Code), ancestry, physical disability, mental disability, medical condition, genetic information, marital status, domestic partner status, sex (including pregnancy or medical conditions related to pregnancy, childbirth or medical conditions related to childbirth, and breastfeeding or medical conditions related to breastfeeding), gender, gender identity, gender expression, age Santa Margarita Water District Page 93 of 161 7 PERSONNEL RULES AND REGULATIONS; ADOPTED ON JANUARY 24, 2014, BY RESOLUTION 2014-01-02; AMENDED ON NOVEMBER 17, 2017 BY RESOLUTION 2017-11-03; AMENDED ON OCTOBER 5, 2022 BY RESOLUTION 2022-10-03 (40 or over), sexual orientation, or military and veteran status of any person, or any other basis protected by local, state or federal law, or a perception the person has those characteristics or is associated with a person who has or is perceived to have those characteristics ... The District will not tolerate harassment of its employees by anyone, including any supervisor, co-worker, vendor or customer. Harassment of any kind whether verbal, physical, or visual that is based upon a person's legally protected characteristics identified above, or any other protected status under federal, state or local law. Harassment includes all forms of offensive or unwelcome physical or verbal conduct that unreasonably interferes with an employee's work or creates an offensive, intimidating, or hostile working environment for employees, visitors, or anyone conducting business with the District. ANTI-RETALIATION The District will not retaliate against you for filing a complaint or participating in any workplace investigation and will not tolerate or permit retaliation by management, employees or co-workers. Reasonable Accommodation Discrimination can also include failing to reasonably accommodate religious practices or qualified individuals with disabilities where the accommodation does not pose an undue hardship. To comply with applicable laws ensuring equal employment opportunities to qualified individuals with a disability, the District will make reasonable accommodations for the known physical or mental limitations of an otherwise qualified individual with a disability who i s an applicant or an employee unless undue hardship would result. Any job applicant, unpaid intern or employee who requires an accommodation in order to participate in the application process or to perform the essential functions of the job should contact the Human Resources Manager and discuss the need for an accommodation. The Human Resources Manager , on behalf of the District, will engage in an interactive process with the employee to identify possible accommodations, if any, which will help the applicant, unpaid intern or employee participate in the application process or perform the job. An applicant, employee or unpaid intern who requires an accommodation of a religious belief or practice (including religious dress and grooming practices, such as re ligious clothing or hairstyles) should also contact the Human Resources Manager and discuss the need for an accommodation. If the accommodation is reasonable and will not impose an undue hardship, the District will make the accommodation. The District will not retaliate against an employee for requesting a reasonable accommodation and will not knowingly tolerate or permit retaliation by management, employees or co-workers. The District's policy prohibiting harassment applies to all persons involved in the operation of the District. The District prohibits harassment, disrespectful or unprofessional conduct by any employee of the District, including supervisors, managers and co-workers. The District's anti-harassment policy also applies to vendors, customers, independent contractors, unpaid interns, volunteers, persons providing services pursuant to a contract and other persons with whom employees come into contact while working. Sexual harassment is one specific form of harassment, and it is illegal under both Federal and California law and prohibited under this policy. Sexual harassment is any form of unwelcome or unwanted advances, requests for sexual favors and any other verbal, visual, or physical conduct of a sexual nature when: (1) submission to or rejection of this conduct by an individual is used as a factor in decisions affecting hiring, evaluation, retention, promotion or other aspects of employment; or (2) this cond uct substantially interferes with an individual's employment or creates an intimidating, hostile, or offensive work environment. Examples of sexual harassment include, without limitation, any of the following forms of misconduct: Santa Margarita Water District Page 94 of 161 8 PERSONNEL RULES AND REGULATIONS; ADOPTED ON JANUARY 24, 2014, BY RESOLUTION 2014-01-02; AMENDED ON NOVEMBER 17, 2017 BY RESOLUTION 2017-11-03; AMENDED ON OCTOBER 5, 2022 BY RESOLUTION 2022-10-03 • Unwanted sexual advances; • Demands for sexual favors in exchange for favorable treatment or continued employment; • Threats and demands to submit to sexual requests in order to obtain or retain any employment benefit; • Verbal conduct such as epithets, derogatory or obscene comments, slurs or sexual invitations, sexual jokes, propositions, suggestive, insulting, obscene comments or gestures or other verbal abuse of a sexual nature; • Graphic verbal commentary about an individual's body, sexual prowess, or sexual deficiencies; • Flirtations, advances, leering, whistling, touching, pinching, assault, coerced sexual acts, or bl ocking normal movements; • Visual conduct such as derogatory or sexual posters, e-mail, photographs, cartoons, drawings, or gestures or other displays in the workplace of sexually suggestive objects or pictures; • Derogatory or offensive conduct or comments consistently targeted at only one gender, even if the content is not sexual; Sexual harassment does not need to be motivated by sexual desire to be unlawful or to violate this policy. For example, hostile acts toward an employee because of his/her gender can amount to sexual harassment, regardless of whether the treatment is motivated by sexual desire. Prohibited harassment includes not only sexual harassment but harassment based on any protected category. RETALIATION California and Federal law and District policy prohibit retaliation against any employee for opposing unlawful discrimination or harassment prohibited by law or for filing a complaint with, o r otherwise participating in an investigation, proceeding, or hearing conducted by the District, the DFEH or the EEOC. Employees who feel they have been retaliated against should file a complaint in the same manner as a harassment and discrimination complaint described below, and the District will treat the complaint like other harassment complaints. District employees are prohibited from engaging in any form of retaliation against an employee for engaging in protected activities. The District may take disciplinary action (up to and including termination) against any employee who is found to have engaged in retaliatory conduct. FILING COMPLAINTS OF HARASSMENT, DISCRIMINATION AND RETALIATION In order to establish and maintain a work environment free from harassment, discrimination and retaliation, the District prohibits employees from participating in or inciting behavior in others that may reasonably be interpreted as creating a hostile or offensive working environment, constituting discriminatory employment practices or retaliating in any manner based on taking protected actions to oppose conduct proh ibited by this policy, reporting such conduct or participating an any investigation o f conduct prohibited under this policy. The standard that shall be applied to an alleged harasser's behavior is that of a reasonable person. Employees who believe they are being harassed, discriminated against or retaliated against must immediately report it to his/her supervisor, the Human Resources Manager or the General Manager. Employees who believe they are being harassed are also encouraged to promptly notif y the harasser that the offensive behavior is unwelcome. Any employee who has witnessed harassment of another employee must immediately report it to his/her supervisor, the Human Resources Manager or the General Manager orally or in writing. The District encourages all individuals to report any incidents of harassment, discrimination, retaliation o r other prohibited conduct forbidden by this policy immediately so that complaints can be quickly and fairly resolved. All complaints of harassment, discrimination and retaliation will be kept as confidential as possible, but some disclosure will be necessary to conduct a proper investigation. In each case, the employee who beli eves they have been harassed, discriminated against or retaliated against will receive a timely written reply from the District on the results of the investigation PROCEDURES FOR FILING COMPLAINTS OF HARASSMENT, DISCRIMINATION AND/OR RETALIATION Santa Margarita Water District Page 95 of 161 9 PERSONNEL RULES AND REGULATIONS; ADOPTED ON JANUARY 24, 2014, BY RESOLUTION 2014-01-02; AMENDED ON NOVEMBER 17, 2017 BY RESOLUTION 2017-11-03; AMENDED ON OCTOBER 5, 2022 BY RESOLUTION 2022-10-03 The District recognizes that power and status disparities between an alleged harasser and a vict im may make confronting the alleged harasser about the conduct difficult. Therefore, the following internal complaint procedure has been established to investigate any complaints and to enable the District to take appropriate corrective action when a violation of this policy is found. a. Any employee who believes that he/she is being harassed, discriminated against or retaliated against or has witnessed such conduct must promptly report the alleged act(s) to his/her immediate supervisor, the Human Resources Manager or the General Manager orally or in writing. An employee is not required to report harassment to the individual who is harassing the employee. b. The supervisor shall immediately report each complaint to the Human Resources Manager . c. The Human Resources Manager, or General Manager if the Human Resources Manager is involved, will ensure that all complaints are promptly, fairly, and thoroughly investigated and ef fectively resolved. The identity of the complainant, as well as any other employees involved in the investigation, and other information regarding the complaint will not be unnecessarily disclosed, although complete confidentiality cannot be guaranteed. d. If the General Manager is involved in the alleged harassment , discrimination or retaliation, the Human Resources Manager shall report the complaint directly to the President of the District's Board of Directors who shall have the responsibility of ensuring that such complaint is promptly, fairly, and thoroughly investigated and effectively resolved. The District will document the steps of the investigation to ensure reasonable progress and will keep the complainant informed. e. In the event it is determined that harassment, discrimination or retaliation has occurred based upon the evidence collected and after the parties have had a fair opportunity to participate in the investigation and to provide information, the necessary and appropriate corrective action will be undertaken to resolve the issue. This may include discipline, up to and including termination. In addition to the District's internal complaint procedure, employees may, file a complaint with the California Department of Fair Employment and Housing ("DFEH") (http://www.dfeh.ca.gov/Contact.htm) or the Federal Equal Employment Opportunity Commission (“EEOC”) (http://www.eeoc.gov/contact/). Once the investigation is complete, the District will timely close the investigation. f. The District will not wait until inappropriate or offensive conduct in the workplace rises t o the level of harassment under the law to take steps to stop the inappropriate conduct/behavior in the workplace. Since this type of behavior may seriously damage the professional and personal reputation of any employee, the District recognizes that false accusations of harassment or discrimination may have an equally devastating effect upon persons unjustly charged with this behavior. Persons alleging charges of this nature without a good-faith belief against a fellow employee will be subject to the same corrective action as a person determined to be responsible for committing an act of harassment, discrimination or retaliation. HIRING The General Manager shall authorize the hiring of new employees at a salary that is within the established range for those positions that have been previously approved and authorized by the Board of Directors. The District gives no guarantee or contract, either expressed or implied, of continued or full-time employment with the District. All applicants for employment must complete all portions of the District's employment application form. Falsification, misrepresentation, and/or omission on the application are grounds for refusal to hire, or if hired, dismissal. A background investigation, which may include a Department of Motor Vehicles (DMV) check, an employment history check and a credit check on applicable positions, will be conducted on the final candidate prior to a job offer being extended. Based on the needs of the position and the results of the investigation it may preclude hiring or continued employment. A criminal conviction history background check will not be performed until the District has determined that the applicant meets the minimum e mployment qualifications, as stated in any notice issued for the position. One of the conditions of employment will be the applicant's ability to perform the essential functions of the position applied for as described in the classification statement, with or without reasonable accommodation. Therefore, following a conditional job offer, an employee will be asked to complete an employment physical Santa Margarita Water District Page 96 of 161 22 PERSONNEL RULES AND REGULATIONS; ADOPTED ON JANUARY 24, 2014, BY RESOLUTION 2014-01-02; AMENDED ON NOVEMBER 17, 2017 BY RESOLUTION 2017-11-03; AMENDED ON OCTOBER 5, 2022 BY RESOLUTION 2022-10-03 B. EMERGENCY ABSENCES In the event employees are absent due to an emergency situation, such as a sudden illness or hospitalization, their supervisor must be notified by either the employee or by the individuals designated by employee as their emergency contact. This notification should be made within 24 hours after the emergency's occurrence. Employees leaving a message with anyone other than their supervisor or their Department Hea d do not meet the reporting requirements. C. ABSENCE WITHOUT LEAVE AS AUTOMATIC RESIGNATION Absence from work without leave, whether voluntary or involuntary, for three (3) consecutive working days is an automatic resignation from District employment as o f the last date on which the employee worked. An employee shall be provided with written notification of his/her automatic resignation and be given an opportunity to seek reinstatement. Requests for reinstatement must be made in writing and filed with the General Manager within seven (7) calendar days of the notice of separation. IV. EMPLOYEE RELATIONS A. GRIEVANCE PROCEDURE A grievance procedure is established for the following purposes: • Promoting improved employer/employee relations by establishing an appropriate means for determining the validity of grievances i.e., claims by an employee that the District has violated, misinterpreted or misapplied a provision of the Memorandum of Understanding, Personnel Rules and Regulations, or other written policy of the District. Specifically excluded from this grievance procedure are actions regarding discipline, performance evaluations, and harassment and discrimination complaints. • Providing a method of resolving such claims as closely as possible to the point of origin and as informally as possible. • Encouraging free communications between supervisors and employees. 1. GRIEVANCE PROCEDURE STEPS: a. Step One: Supervisor. An employee who has a grievance shall first take it up informally with his/her immediate supervisor within seven (7) calendar days after he/she knew or reasonably should have known of the occurrence of the cause of the grievance and any action taken. A grievance shall be deemed to have been filed when an employee identifies it as such to his/her supervisor. If the grievance is for harassment, discrimination, or retaliation by the supervisor, the employee may instead submit a grievance orally or in writing to his/her Department Head, as stated in Step Two, below. b. Step Two: Department Head. If the grievance is not resolved within seven (7) calendar days after its submission in Step One, the employee may submit the grievance orally or in writing to his/her Department Head within seven (7) calendar days thereafter. If the employee's Department Head is not available, then the employee may submit the grievance to an available Department Head. The selected Department Head will meet with the employee within five (5) calendar days after the submission of the grievance and will attempt to deliver an answer, in writing, to the employee within seven (7) calendar days after such meeting. At step two and all subsequent steps in the grievance procedure, employees, at their option, have the right to present their grievance with or without a representative. c. Step Three. Peer Review Committee. If the grievance is not resolved in the second step, the aggrieved employee may submit it in writing to the Peer Review Committee within seven (7) calendar days after receiving the Department Head’s answer. If no answer is received from the Department Head, the employee may submit the grievance within seven (7) calendar days of when an answer should have been received. The employee may waive his/her right to have his/her grievance reviewed by the Peer Review Committee and have their grievance go forward to the General Manager, but he/she must Santa Margarita Water District Page 97 of 161 23 PERSONNEL RULES AND REGULATIONS; ADOPTED ON JANUARY 24, 2014, BY RESOLUTION 2014-01-02; AMENDED ON NOVEMBER 17, 2017 BY RESOLUTION 2017-11-03; AMENDED ON OCTOBER 5, 2022 BY RESOLUTION 2022-10-03 comply with the above timetable, do so in writing before the Committee is se ated, and with the full understanding that the General Manager’s decision is final. The Peer Review Committee will consist of two non-exempt and two exempt employees randomly selected from a pool of volunteers. The selected representatives can have no prior involvement in the grievance being reviewed. Representatives will receive no additional compensation f or their participation. To the extent possible, the identity of the Committee will be kept confidential. A new Committee will be drawn for each grievance. The Committee will review all relevant documentation concerning the grievance and make a recommendation to the General Manager within ten (10) calendar days after receiving the grievance. There will be no personal appearances in front of the Committee; however, the Committee may request additional information from the parties involved. Decisions of the Committee need not be unanimous. If representatives cannot agree, independent recommendations may be forwarded to the General Manager. d. Step Four: General Manager. Within five (5) calendar days after receiving the Peer Review Committee’s recommendation(s) the General Manager will meet with the aggrieved employee and will attempt to provide an answer in writing within (7) calendar days after such meeting. If the General Manager is unable to meet with the employee or provide an answer within the above peri ods, then he/she will attempt to do so at the earliest possible opportunity. The District and the employee may mutually agree to extend any of the deadl ines outlined above. However, to be effective, any such agreement must be in writing, signed by both par ties, and must specifically state the new deadline. Failure of the District representative to meet the timelines shall be deemed a denial of the grievan ce and the employee may proceed to the next step. Failure by the employee to meet the timelines shall be deemed a withdrawal of the grievance with prejudice. B. CONDUCT GUIDELINES 1. Employment of every employee shall be based on reasonable standards of personal conduct and job performance. Failure to meet such standards shall be grounds for appropriate dis ciplinary action at the sole discretion of the District that shall be commensurate with the seriousness of the offense and with due consideration to other relevant factors such as the employee's prior performance record. 2. Employees are expected to report all suspected cases of unethical activity, fraudulent use of District resources, discrimination, harassment, retaliation, conflicts of interest or behavior that could endanger employees or the District. See section II for procedures for filing a complaint . 3. Employees may be subject to discipline and discharge for cause. C. COUNSELING AND DISCIPLINE To ensure the well-being of all employees, violations of District policies or standards will result in corrective action appropriate to the misconduct. The severity of the corrective action in response to the violation will be determined by such considerations as the impact of the misconduct on the Distric t’s operations, the potential for, or extent of, damage caused and the circumstances pertaining to the misconduct. Except as provided elsewhere herein, upon receipt of corrective disciplinary warnings and suspensions of five days or less, employees shall be given the opportunity to respond within seven (7) calendar days, verbally or in writing, at the employee’s option, to the Human Resources Manager or, in the case of a short suspension of five days or less, the immediate supervisor or department head. 1. MISCONDUCT The following is a non-exclusive list of the types of misconduct that will result in discipl inary action. The District reserves the right to review conduct and evaluate based on all the circumstances in each individual case. • Actions contrary to the District's policies • Discourteous or dishonest treatment of the public or other employees Santa Margarita Water District Page 98 of 161 24 PERSONNEL RULES AND REGULATIONS; ADOPTED ON JANUARY 24, 2014, BY RESOLUTION 2014-01-02; AMENDED ON NOVEMBER 17, 2017 BY RESOLUTION 2017-11-03; AMENDED ON OCTOBER 5, 2022 BY RESOLUTION 2022-10-03 • Theft or abuse of property of the District, co-employees or customers • Neglect or dereliction of duty • Dishonesty or falsification of any District or customer record • Improper or unprofessional conduct • Conviction of any felony, or of any misdemeanor involving dishonesty or improper conduct • Absence from duty without authorization • Excessive absenteeism, tardiness or early departures • Use or possession of illegal drugs (including legal drugs without a valid prescription) or alcohol on District time or District property, vehicles or equipment • Failure to cooperate in any District investigation • Striking another person on District time or District property, regardless of provocation • Insubordination or disregard of proper authority • Engaging in verbal or physical threats and confrontation • Harassment or discrimination of any kind • Possession and/or use of weapons or explosive devices on District premises, in a District vehicle or while engaged in District business • Unsatisfactory performance 2. DISCIPLINARY ACTIONS The following is a non-exclusive list of the types of disciplinary actions that may be imposed. • Verbal counseling • Written Warning • Reduction in pay for disciplinary purposes • Demotion - reduction from a position in one class to a position in another class with a lower salary range effected for disciplinary purposes (demotions resulting from organizational changes and layoffs are not disciplinary) • Suspension - an involuntary absence without pay • Dismissal - discharge from service with the District 3. WRITTEN NOTICE OF DISCIPLINARY ACTION In cases of disciplinary demotions, reductions in pay, discharge and suspensions of six (6) days or more, an employee shall be given prior written notification of the proposed disciplinary action except in emergencies where the employee must be removed from the job immediately. Such written notice may be served personally to the employee or sent by first-class mail to the employee's last known address and shall contain the following information: a. A statement of the proposed disciplinary action and its effective date(s). b. A statement of the reasons for such proposed action, including the acts or omissions on which the proposed action is based. c. The documents, if any, on which the proposed action is based. d. A statement that the employee has the right to respond, verbally or in writing, before the discipline takes effect. e. A statement that the employee is entitled to representation. 4. EMPLOYEE RIGHT TO RESPOND Prior to the effective date of disciplinary demotions, reductions in pay, discharge and suspensions of six (6) days or more, the employee shall be given the opportunity to respond (within seven (7) calendar days), verbally or in writing, at the employee's option to the appropriate Department Head. The employee must set the appointment for the hearing within four working days. The employee shall thereafter be given notice of the District's final determination of the disciplinary action within seven (7) calendar days of the response or failure of the employee to respond. 5. ADMINISTRATIVE REVIEW Santa Margarita Water District Page 99 of 161 25 PERSONNEL RULES AND REGULATIONS; ADOPTED ON JANUARY 24, 2014, BY RESOLUTION 2014-01-02; AMENDED ON NOVEMBER 17, 2017 BY RESOLUTION 2017-11-03; AMENDED ON OCTOBER 5, 2022 BY RESOLUTION 2022-10-03 Any regular employee, except probationary or temporary employees, shall have the right to an Administrative Review of disciplinary demotions, reductions in pay, discharge or suspensions of six (6) da ys or more. A written request for such a review shall be submitted to the Human Resources Manager within five (5) working days of the date of the presentation of the final notice of disciplinary action. If a timely request for a review is submitted, the review shall be conducted before an impartial representative of the District. The employee and the District representative may present verbal and written evidence and argument at or before the time of the review. The employee is entitled to question the person(s) offering evidence against him or her and is entitled to representation. The District representative may also question witnesses. The District representative conducting the review shall make findings of facts to support the disciplinary action should such action be deemed appropriate. The employee shall be notified of the District's representative's decision in writing within five (5) working days following close of the hearing. This decision shall be final and binding on all parties. 4. EMERGENCY SUSPENSIONS Under emergency circumstances, an employee may be removed or ordered from the workplace. In such a case, the employee's supervisor shall document the circumstances that indicate the employee's continued presence at the work site could have detrimental consequences. After the emergency has passed, the Supervisor, Department Head and Human Resources Manager shall, within five (5) days, begin the Disciplinary Action for cause proceedings. V. SEPARATION OF EMPLOYMENT A. REDUCTION-IN-FORCE OR LAYOFF Business and operational needs may necessitate a decrease in the number of employees. Should a reduction-in- force be deemed necessary, the District will observe the following procedure: 1. ORDER OF LAYOFF When a reduction in the work force or layoff i s necessary, the District may select employees based on consideration of such factors as skill, ability, performance and length of continuous service wi th the District. 2. NOTIFICATION OF EMPLOYEES Written notices of layoff shall be served on employees personally at work whenever practicable. The notice of layoff shall include the reason for the layoff and the proposed effective date of the layoff. 3. STATUS ON REEMPLOYMENT An employee who is laid off according to this policy and is subsequently re -hired within nine (9) months from the date of his/her layoff to a regular, full-time position will receive all prior service credited for all purposes, except as otherwise limited by applicable law. This policy does not apply to probationary employees. 4. SEPARATION PAY Regular employees whose employment with the District is terminated due to reduction-in-force or layoff are eligible to receive separation pay equivalent to one weeks’ pay for each full year of complete employment with the District with a minimum of two weeks. Receipt of separation pay will not impact a terminated employee’s right to apply for unemployment insurance benefits. B. SEPARATION PROCESSING 1. EXIT INTERVIEW Santa Margarita Water District Page 100 of 161 ITEM NO. 9.1. AGENDA REPORT MEETING DATE: February 22, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Mid-Year Review of Fiscal Year 2023-24 Budget Staff will present the Mid-Year Review of Fiscal Year 2023-24 Budget. ATTACHMENTS: 1. Slide Deck - Mid-Year Review of FY23-24 Budget Page 101 of 161 FY2023-24 Budget Mid-Year Review February 22, 2024 Page 102 of 161 Overview •Production •Revenue •Variable Costs •Salary and Related Expenses •Supplies and Services •Status of CIP •Debt Service •Reserve Balance •Financial Summary of FY2023-24 Projections 22/22/2024 Page 103 of 161 Production Page 104 of 161 42/22/2024 FY24 Budget Budget %FY24 Projection Projection % Ground Water 14,804.3 77%15,403.0 85% Import Water 4,423.1 23%2,661.6 15% Total 19,227.4 18,064.6 1,740.6 1,534.2 1,410.2 1,398.9 1,212.8 1,060.2 922.0 1,048.9 1,063.0 1,286.5 1,311.3 1,414.4 345.9 312.2 277.5 279.7 233.2 199.5 16.0 55.2 118.1 142.9 327.8 353.6 2,123.4 2,152.8 1,981.5 1,790.8 1,493.8 1,106.6 1,185.7 1,147.5 1,097.5 1,521.4 1,744.6 1,881.8 GW 83.4% GW 83.1% GW 83.6% GW 83.3% GW 83.9% GW 84.2% GW 98.3% GW 95.0% GW 90.0% GW 90.0% GW 80.0% GW 80.0% - 500.0 1,000.0 1,500.0 2,000.0 2,500.0 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Vo l u m e , A F Production Demand FY24 Year-End Projections by Month Ground Water Import Water FY24 BUDGET Actuals Projections (Based on 5-year avg.) Page 105 of 161 Production Demand 52/22/2024 FY23 Actual FY24 Budget FY24 Projection Projection to Budgeted Var $ Projection to Budgeted Var % Ground Water 14,239.7 14,804.3 15,403.0 598.7 4% Import Water 2,317.1 4,423.1 2,661.6 (1,761.5)-40% Total 16,556.8 19,227.4 18,064.6 (1,162.8)-6% Variance Explanation The decrease of 6% from budgeted is due to lower use of water than estimated. Informationally, GW% increased from budgeted to projections. FY23 Actual FY24 Budget FY24 Projection Ground Water %86%77%85% Import Water %14%23%15% Page 106 of 161 Revenue Page 107 of 161 72/22/2024 FY23 Prior Year FY24 Budgeted FY24 Projection Projection to Budgeted Var $ Projection to Budgeted Var % Consumption (CCF)6,631,701 7,776,493 6,900,672 (875,821)-11% Revenue ($)$ 18,920,836 $ 26,349,862 $ 23,481,771 $ (2,868,091)-11% Revenue Analysis Revenue from Consumption Variance Explanation The decrease in Consumption from budgeted is due to lower use of water than estimated. The decrease in Consumption Revenue from budgeted is due to lower use of water than estimated. FY23 Prior Year FY24 Budgeted FY24 Projection Projection to Budgeted Var $ Projection to Budgeted Var % Operating Revenue $ 41,607,538 $ 51,437,897 $ 48,249,536 $ (3,188,361)-6% Non-Operating Revenue 4,575,970 4,112,049 4,862,667 750,618 18% $ 46,183,508 $ 55,549,946 $ 53,112,203 $ (2,437,743)-4% Total Consolidated Revenue Summary Variance Explanation The decrease from budgeted year is due to lower use of water than estimated. Non-Operating Revenue is predominantly interest income from investments. Page 108 of 161 82/22/2024 Revenue Analysis Water Revenue (Res.) Water Revenue (Comm & Fire) Water Revenue (Irrigation) Service Charges Property Tax - CFC Sewer Charge Revenue Sewer Parcel Assessment Other Operating Revenue Interest Income Property Tax Other Non- Operating Revenue FY24 Budget 19,683,344 2,016,621 4,769,326 16,076,351 3,597,389 3,582,947 410,497 1,301,422 948,000 2,402,796 761,253 FY24 YE Projections 17,425,254 1,871,585 4,304,440 16,003,052 3,597,389 3,574,492 412,899 1,060,425 1,540,609 2,526,612 795,446 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Revenue Analysis FY24 Budget, FY24 Projections Page 109 of 161 Variable Costs Page 110 of 161 Variable Costs Analysis 102/22/2024 Prior Year FY2022-23 Budget FY2023-24 Projections FY2023-24 Projection to Budgeted Var $ Projection to Budgeted Var % Groundwater Purchases $ 7,933,477 $ 9,237,883 $ 9,735,880 $ 497,997 5% OCWD Annexation Fee 688,612 736,815 717,261 (19,554)-3% Power Costs 2,960,152 3,071,848 3,115,016 43,168 1% Import Water Purchases 2,570,435 5,338,971 3,168,158 (2,170,813)-41% MWDOC Fixed Costs 1,155,753 1,505,652 1,488,847 (16,805)-1% $ 15,308,429 $ 19,891,169 $ 18,225,162 $ (1,666,007)-8% Variable Costs Detail Variance Explanation The decrease of 8% from budgeted amounts is due to the decrease in projected demand and increase in GW% from 77% to 85% (ground water is more affordable than import water). Groundwater Purchases 54% OCWD Annexation Fee 4% Power Costs 17% Import Water Purchases 17% MWDOC Fixed Costs 8% Variable Costs FY2023-24 Projections % Allocation Page 111 of 161 Salary & Related Expenses Page 112 of 161 122/22/2024 FY23 Prior Year FY24 Budget FY24 Projections Projection to Budgeted Var $ Projection to Budgeted Var % Salaries $7,963,735 $9,171,793 $8,523,555 ($648,238)-7% Benefits $2,384,490 $5,204,879 $5,214,401 $9,522 0% $10,348,225 $14,376,672 $13,737,956 ($638,716)-4% Salaries & Related Expenses Detail Variance Explanation The decrease in Salary & Related expenses is due to positions being vacant for part of the year. $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 FY24 Budget FY24 Projections Salary Related Expenses FY24 Budget, FY24 Projections Salaries Benefits Page 113 of 161 Supplies & Services Page 114 of 161 142/22/2024 Supplies & Services Summary Board of Directors 1%Administration 9% Finance 6% Engineering 12% Operations 56% IT 10% HR 6% DEPARTMENT SPENDING ALLOCATION SUPPLIES & SERVICES FY24 PROJECTIONS FY23 Prior Year FY24 Budget FY24 Projections Projection to Budgeted Var $ Projection to Budgeted Var % Supplies & Services $8,100,671 $10,489,766 $10,174,735 $(315,031)-3% Variance Explanation The decrease in Supplies & Services from Budgeted due to various expense category, please see the following slide for details. Page 115 of 161 152/22/2024 Variance Explanation Communications – The increase of 13% is mainly due to increased recruiting activities (job postings and related advertising expenses). Data Processing – The decrease of 14% is mainly due to not purchasing GIS Mapping Data (being reevaluated to see if needed) and spending less in the current fiscal year on Microsoft 365 conversion which will continue into next fiscal year. Maintenance – The decrease of 8% is mainly due to changes to the City of Yorba Linda’s pavement plans and required manhole and valve adjustments. Materials – The decrease of 5% is mainly due to the reduced number of PFAS treatment plant vessels needing resin replacement. Budgeted number of vessels was 7 but the projected amount is 4, approximately $167,000 per vessel. Professional Services – The increase of 4% is mainly due to the necessary additional Hydraulic Modeling consulting services. 13% 0%-14% -16%-1% 6%-6% -8% -5% 0%0%-6% 4% -5%0% -3% 1% 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 FY24 Budget to Projections Supplies & Services 2024 Budget 2024 YE Projectons Page 116 of 161 Status of CIP Page 117 of 161 172/22/2024 Capital Improvement Projects Detail Project FY2023-24 BOD Approved Budget FY2023-24 Projected Expenses Comments BNSF Crossing-Veterans Way and S. Highland $1,336,061 $980,028 Completed. Golden Ave Waterline 305,498 2,371 On-hold. Pending City of Placentia bridge construction schedule. Hidden Hills BPS Upgrades 255,131 129,678 In Progress. Imperial Waterline Improvement 2,938,333 2,884,333 Completed. Mountain View Waterline Replacement 598,938 650,069 Completed. PRS Rehabilitation Project *Based on AMP & Asset Scores 300,000 960,925 In Progress. Increased scope/budget to include 4 additional PRS projects. Timber Ridge BPS Pump Replacement 4,209,634 3,530,289 In Progress. Waterline Replacement *Based on AMP & Leak History 2,600,000 1,634,789 In Progress. Reduced Camino De Bryant Waterline scope to prioritize PRS projects. Well 22 Equipping 5,000 54,719 Completed. Well Rehabilitation Project 396,000 542,750 1 Well completed. 2 Wells In Progress. Scope/budget increase to include one additional well. Total Water CIP $12,944,595 $11,369,952 Green Crest Lift Station Rehab $400,000 $2,287 On-hold. Pending USEPA $300,000 grant funding. Main Street Sewer Replacement 552,530 454,162 In Progress. Sewer System Rehabilitation and Replacement Project 508,875 439,268 In Progress. Total Sewer CIP $1,461,405 $895,717 Capital Outlay Vehicle Replacement 480,000 480,000 Security Improvements/Modifications 50,000 50,000 Total Capital Outlay $530,000 $530,000 Grand Total $14,936,000 $12,795,669 Note: Project amounts listed do not reflect the total project cost, only the current budgeted amount. Page 118 of 161 Debt Service Page 119 of 161 Debt Service Ratio For Water Fund FY23 Actual FY24 Budget FY24 Projections Debt Service $ 3,165,564 $ 4,134,219 $ 4,134,219 Ratio 3.46 2.46 2.44 Per Policy 2.25 2.25 2.25 192/22/2024 Debt Service Ratio Equation: Total Revenue -Total Expenses (excluding interest expense) Total Debt Service Page 120 of 161 Reserve Balance Page 121 of 161 212/22/2024 Reserve Balance Reserve Fund Categories FY24 Min Target Levels FY24 Max Target Levels FY24 Projections Operating Reserve $ 11,840,507 $ 23,681,013 $ 28,370,531 Emergency Reserve 8,266,450 16,532,900 9,714,818 Capital Replacement Reserve 14,256,000 14,406,000 10,605,635 Rate Stabilization Reserve 2,369,801 9,479,204 4,566,506 MWD Contingency Reserve 6,000,000 20,000,000 - Employee Liability Reserve (Restricted)216,919 316,919 323,591 Conservation Reserve (Restricted)-108,936 74,244 Total $ 42,949,677 $ 84,524,972 $ 53,655,325 $74,244 $323,591 $0 $4,566,506 $10,605,635 $9,714,818 $28,370,531 $0 $5 $10 $15 $20 $25 $30 Conservation (Restricted) Employee Liability (Restricted) MWD Contingency Rate Stabilization Capital Replacement Emergency Operating Millions Reserve Target Levels FY24 Year End Projections Max Target Min Target Current Level When the bars are together, the minimum and maximum target levels are the same amount. Page 122 of 161 Summary of FY2023-24 Projections Financials Page 123 of 161 Financial Summary -Consolidated Revenue FY23 Actual FY24 Budget FY24 Projections Variance $ Budget to Projected Revenue (Operating)$ 41,607,539 $ 51,463,692 $ 48,249,536 $ (3,214,156) Revenue (Non-Operating)4,575,966 4,086,254 4,862,667 776,413 Total Revenue 46,183,505 55,549,946 53,112,203 (2,437,743) 232/22/2024 Expenses Expenses (Operating): Variable Costs $ 15,308,429 $ 19,891,169 $ 18,225,162 $ (1,666,007) Salary Related Expenses 10,348,225 14,376,672 13,737,956 (638,716) Supplies & Services 8,100,671 10,489,766 10,174,735 (315,031) Expenses (Non-Operating)2,766,471 2,623,044 2,709,534 86,490 Total Expenses 36,523,796 47,380,651 44,847,387 (2,533,264) Net Position Before Capital Contributions & Depreciation $ 9,659,709 $ 8,169,295 $ 8,264,816 $ 95,521 Capital Contributions 26,022,951 -445,291 445,291 Depreciation 9,094,787 9,379,000 9,103,071 (275,929) Total Net Income (Loss)$ 26,587,873 $ (1,209,705)$ (392,964)$ 816,741 Page 124 of 161 Financial Summary -Water 242/22/2024 Debt Service $ 3,165,564 $ 4,134,219 $ 4,134,219 - Ratio 3.46 2.46 2.44 (0.02) Per Policy 2.25 2.25 2.25 - Revenue FY23 Actual FY24 Budget FY24 Projections Variance $ Budget to Projected Revenue (Operating)$ 38,102,054 $ 47,396,018 $ 44,218,117 $ (3,177,901) Revenue (Non-Operating)4,334,643 3,901,619 4,557,127 655,508 Total Revenue 42,436,697 51,297,637 48,775,244 (2,522,393) Expenses Expenses (Operating): Variable Costs $ 15,308,429 $ 19,891,169 $ 18,225,162 $ (1,666,007) Salary Related Expenses 8,782,887 12,155,919 11,622,593 (533,326) Supplies & Services 7,007,737 9,070,383 8,811,228 (259,155) Expenses (Non-Operating)2,782,215 2,616,744 2,703,562 86,818 Total Expenses 33,881,268 43,734,215 41,362,545 (2,371,670) Net Position Before Capital Contributions & Depreciation $ 8,555,429 $ 7,563,422 $ 7,412,699 $ (150,723) Capital Contributions 25,606,815 -210,235 210,235 Depreciation 7,566,538 7,690,000 7,597,179 (92,821) Total Net Income (Loss)$ 26,595,706 $ (126,578)$ 25,755 $ 152,333 Page 125 of 161 Financial Summary -Sewer Revenue FY23 Actual FY24 Budget FY24 Projections Variance $ Budget to Projected Revenue (Operating)$ 3,505,485 $ 4,067,674 $ 4,031,419 $ (36,255) Revenue (Non-Operating)241,323 184,635 305,540 120,905 Total Revenue 3,746,808 4,252,309 4,336,959 84,650 252/22/2024 Expenses Expenses (Operating): Salary Related Expenses $ 1,565,338 $ 2,220,753 $ 2,115,363 $ (105,390) Supplies & Services 1,092,934 1,419,383 1,363,507 (55,876) Expenses (Non-Operating)(15,744)6,300 5,972 (328) Total Revenue 2,642,528 3,646,436 3,484,842 (161,594) Net Position Before Capital Contributions & Depreciation $ 1,104,280 $ 605,873 $ 852,117 $ 246,244 Capital Contributions 416,136 -235,056 235,056 Depreciation 1,528,249 1,689,000 1,505,892 (183,108) Total Net Income (Loss)$ (7,833)$ (1,083,127)$ (418,719)$ 664,408 Page 126 of 161 ITEM NO. 9.2. AGENDA REPORT MEETING DATE: February 22, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Goals and Objectives for Fiscal Year 2024-25 Operating and Capital Budget Staff will present and discuss the Goals and Objectives for Fiscal Year 2024-25 Operating and Capital Budget. ATTACHMENTS: 1. Slide Deck - Board Goals and Objectives for FY24-25 Budget Page 127 of 161 Budget Development Process – Board of Director Goals and Objectives for 2024-25 Operating Budget Budget Workshop Meeting February 22, 2024 02/22/2024 Budget Workshop Meeting 1Page 128 of 161 Budget Process This Budget Workshop is for the Board of Directors to provide goals and objectives to serve as the guidelines for staff to develop the District’s FY2024-25 Annual Operating and Capital Improvement Budget. Key Points of Discussion: •Budget Development Calendar •2021 Rate Study Assumptions and proposed annual rate adjustments •Annual debt service obligations •Staff recommendations 02/22/2024 Budget Workshop Meeting 2Page 129 of 161 Draft Budget Calendar 02/22/2024 Budget Workshop Meeting 3 FY 2024-25 OPERATING/CAPITAL BUDGET DEVELOPMENT - CALENDAR OF KEY EVENTS MEETING ITEM OF DISCUSSION JANUARY Tuesday, January 2, 2024 Department Managers Distribute FY 2024-25 Budget Development Packages to Department Managers Tuesday, January 23, 2024 Executive Staff Discussion on budget development processes Wednesday, January 24, 2024 Staff Meeting Status updates on FY 2024-25 CIP, Capital Outlay, Salary Related, and Variable Cost Budgets Monday, January 29, 2024 Eng & Ops Managers FY 2024-25 CIP, Capital Outlay, Salary Related, and Variable Cost Budgets due to Finance FEBRUARY Tuesday, February 20, 2024 Executive Staff Discussion on CIP, Capital Outlay, Salary Related, and Variable Cost Budgets Thursday, February 22, 2024 Budget Workshop Meeting with BOD to establish goals and objectives for FY 2024-25 Operating and Capital Budgets Present Draft FY 2024-25 CIP, Capital Outlay, Salary Related, and Variable Cost Budgets (V 1.0) Wednesday, February 28, 2024 Staff Meeting Status updates on FY 2024-25 Revenue, Supplies & Services, Non-Operating & Other Updates MARCH Monday, March 4, 2024 Department Managers FY 2024-25 Revenue, Supplies & Services, Non-Operating & Other Updates due to Finance Tuesday, March 26, 2024 Executive Staff Discussion on Revenue, Supplies & Services, Non-Operating & Other Updates Wednesday, March 27, 2024 Staff Meeting Status updates for FY 2024-25 Debt Service, Reserves and Other Key Updates Thursday, March 28, 2024 Budget Workshop Present Draft FY 2024-25 Revenue, Supplies & Services, Non-Operating (V 1.0) & Other Updates (V 2.0) APRIL Monday, April 1, 2024 Department Managers FY2024-25 Debt Service, Reserves and Other Key Updates due to Finance Tuesday, April 23, 2024 Executive Staff Discussion on Debt Service, Reserves and Other Key Updates Wednesday, April 24, 2024 Staff Meeting Status updates for FY 2024-25 Operating and CIP Budget Thursday, April 25, 2024 Budget Workshop Present Draft FY 2024-25 Debt Service, Reserves and Other Key Updates (V 3.0) Monday, April 29, 2024 Department Managers FY 2024-25 Operating and CIP Budget Updates due to Finance MAY Monday, May 20, 2024 Department Managers* Final updates for FY 2024-25 Operating and CIP Budget due to Finance (if needed) Tuesday, May 21, 2024 Executive Staff Discussion on Updates for Operating and CIP Budget Thursday, May 23, 2024 Budget Workshop/Hearing Present FY 2024-25 Operating and CIP Budget (Final Draft 4.0) to Board of Directors for Adoption JUNE Tuesday, June 11, 2024 Executive Staff Discussion on Updates for Operating and CIP Budget (if needed) Thursday, June 13, 2024 Budget Workshop/Hearing* Present FY 2024-25 Operating and CIP Budget (Final Draft 5.0) for Board of Director Adoption (if needed) * Additional meetings should the FY 2024-25 Operating and CIP Budget not be adopted on May 23, 2024. LEGEND Department Managers Deadlines Executive Staff Meetings Staff Meetings Budget Workshops/Hearing DATE * Page 130 of 161 FY 25 Budget Assumptions 02/22/2024 Budget Workshop Meeting 4 2025 2025 GW%75% 85% Demand 18,416 18,687 Revenue (Water, Sewer)9%, 15% 9%, 15% Supplies & Services 2% 4% Salary Related  Expenses 8% 7% Variable Costs Power Electricity 5% 7% Gas 5% 3% Fixed Water Supply Costs OCWD Annexation 2% 4% MWDOC  Connection Fee 3% 4% MWDOC  Capacity Fee 3% 10% MWDOC  Readiness‐to‐Serve 3% 30% Variable Water Supply Costs OCWD RA $527 $688 MWD  Treated  (Jul‐Dec) $1,278 $1,256 MWD  Treated  (Jan‐Jun) $1,342 $1,465 FY21 Rate Study Assumptions Projected Assumptions  Page 131 of 161 Impact Inflationary Pressures on Cost of Supplies and Materials 02/22/2024 Budget Workshop Meeting 5 Per the 2021 Rate Study Assumption: As of March 2021 inflation was predicted to increase to 2% in 2025. As of December 2023, inflation was reported at approximately 3.5%. https://www.bls.gov/regions/west/news-release/consumerpriceindex_losangeles.htm Page 132 of 161 Annual Debt Service Obligations 02/22/2024 Budget Workshop Meeting 6 Assumptions Per 2021 Rate Study FY 2024 FY  2025 Current Debt Service Series 2012A 582,913$          583,663$           Series 2017A 2,143,419$      2,139,919$       Proposed New Water Debt  Service Issue  Date January 2023 Term 30 Yrs Interest Rate 5.0% Proposed Debt 15,000,000$           Issuance  Cost 300,000$                 Net Proceeds 14,700,000$           Series 2022A 765,289$          765,289$           Total  Annual Debt Service 3,491,621$      3,488,871$       Resulting Annual Debt  Service FY 2024 FY  2025 Existing Debt  Service Series 2017A 2,143,419$      2,139,919$       New Debt Service Issue  Date July  2022 Term 30 Yrs Interest Rate 4.1% Proposed Debt 32,310,000$           Issuance  Cost 264,000$                 Net Proceeds 32,046,000$           Series 2022A 1,990,800$      1,993,575$       Total  Annual Debt Service 4,134,219$      4,133,494$       Net Annual  Increase  in Debt  Service 642,598$          644,623$           Page 133 of 161 Board of Director Goals and Objectives for FY 2024-25 Operating Budget •Staff recommendations •To ensure cost of service is met, follow adopted schedule for proposed annual rate adjustments in FY 2024-25 (2021 Rate Study) •Focus on core mission of providing reliable water and wastewater service to protect public health and the environment. •Prioritize the use of Reserves •Board comments 02/22/2024 Budget Workshop Meeting 7Page 134 of 161 ITEM NO. 9.3. AGENDA REPORT MEETING DATE: February 22, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Delia Lugo, Finance Manager SUBJECT: Fiscal Year 2024-25 Budget Workshop #1 Staff will present and discuss the proposed Fiscal Year 2024-25 program budgets for Salary Related Expenses, Capital Improvement Projects, and Capital Outlay. ATTACHMENTS: 1. Slide Deck - FY24-25 Budget Workshop 1 2. 5-Year CIP FY24-25 Budget 3. 5-Year CIP Water Master Plan Page 135 of 161 FY2024-25 Budget Workshop 1 February 22, 2024 2/22/2024 1Page 136 of 161 Overview •Production •Salary Related Expenses •Variable Costs •Summary of FY2024-25 Budget •5-Year CIP 2/22/2024 2Page 137 of 161 Production 2/22/2024 3Page 138 of 161 Production Demand 2/22/2024 4 Prior Year FY2022-23 Projected FYE2023-24 Budget FY2024-25 Production Demand 16,557 18,065 18,679 2021 Rate Study Assumption 18,416 18,416 18,416 Total Production Demand 14,239.7 15,403.0 15,867.1 2,317.1 2,661.6 2,811.4 18,416.0 18,416.0 18,416.0 0.0 2,000.0 4,000.0 6,000.0 8,000.0 10,000.0 12,000.0 14,000.0 16,000.0 18,000.0 20,000.0 Prior Year FY2022-23 Projected FYE2023-24 Budget FY2024-25 Ac r e -Fe e t Production Demand Ground Water Import Water 2021 Rate Study Assumptions Page 139 of 161 Production Demand-Budget Calculation DEMAND TOTAL (Acre-Feet) –5YR Avg JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL FY19 2,277.1 2,283.8 2,010.2 1,782.8 1,555.4 980.2 979.5 602.8 873.1 1,531.7 1,436.1 1,712.8 18,025.5 FY20 2,041.6 2,151.2 1,988.3 1,919.2 1,524.6 876.3 1,184.0 1,609.3 1,145.4 1,125.1 1,842.0 1,914.1 19,321.0 FY21 2,165.0 2,174.7 2,057.5 1,956.7 1,552.6 1,524.9 1,231.4 1,113.1 1,275.9 1,646.8 1,819.3 1,952.1 20,469.8 FY22 2,100.2 2,108.1 1,974.9 1,686.1 1,592.6 1,139.9 1,235.1 1,340.8 1,527.9 1,623.8 1,784.7 1,831.2 19,945.3 FY23 2,033.5 2,050.0 1,877.8 1,611.8 1,254.0 1,033.0 722.6 1,033.6 706.5 1,239.6 1,465.1 1,529.3 16,556.8 FY24 2,086.5 1,846.4 1,687.7 1,678.6 1,446.0 1,259.7 938.0 10,942.9 5 YR AVG.2,085.4 2,066.1 1,917.2 1,770.5 1,474.0 1,166.8 1,062.2 1,139.9 1,105.7 1,433.4 1,669.4 1,787.9 18,678.5 2/22/2024 5 FY2024-25 Budget Calculation Demand is calculated by taking the last 5 years of actuals and averaging them for each month. Page 140 of 161 Production Demand -Rate Study Comparison 2/22/2024 6 Prior Year FY2022-23 Projected FYE2023-24 Budget FY2024-25 Ground Water 14,239.7 15,379.6 15,867.1 Import Water 2,317.1 2,685.0 2,811.4 Total 16,556.8 18,064.6 18,678.5 Historic & Future Demand 2021 Rate Study Assumptions Ground Water %86%85%85% Import Water %14%15%15% FY2022-23 FY2023-24 FY2024-25 Ground Water 13,812.0 13,812.0 13,812.0 Import Water 4,604.0 4,604.0 4,604.0 Total 18,416.0 18,416.0 18,416.0 Ground Water %75%75%75% Import Water %25%25%25% Page 141 of 161 Salary Related Expenses 2/22/2024 7Page 142 of 161 2/22/2024 Salary Related Expenses 8 Variance from Assumptions Explanation Salary Related Expenses are below the Rate Study in all years, FY23, FY24 and FY25. The increase in FY24 Projected Salary Related Expenses is due to a new MOU effective July 2023 and results of completed compensation study. Note: Salary Related Expenses totals do not include the capitalized labor for proper comparison to the 2021 Rate Study Assumptions. Total: $10,348,225 Total: $13,737,956 Total: $15,746,996 $13,874,936 $14,984,930 $16,183,725 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 FY2022-23 FY2023-24 FY2024-25 FY25 Budget Salary Related Expenses Salary Related - Water Salary Related - Sewer 2021 Rate Study Assumptions Page 143 of 161 Prior Year FY2022-23 Projected FYE2023-24 Budget FY2024-25 Salary Related -Water $ 8,782,887 $ 11,622,593 $ 13,214,585 Salary Related -Sewer 1,565,338 2,115,363 2,532,411 $ 10,348,225 $ 13,737,956 $ 15,746,996 Salaries & Related Expenses Detail 2/22/2024 2021 Rate Study Assumptions FY2022-23 FY2023-24 FY2024-25 Salary Related -Water $ 11,846,713 $ 12,794,450 $ 13,818,006 Salary Related -Sewer 2,028,223 2,190,480 2,365,719 $ 13,874,936 $ 14,984,930 $ 16,183,725 Rate Study Assumptions $ (3,526,711)$ (1,246,974)$ (436,729) Variance %-25%-8%-3% Variance from Assumptions Salary Related Expenses Note: Salary Related Expenses totals do not include the capitalized labor for proper comparison to the 2021 Rate Study Assumptions. 9Page 144 of 161 Variable Costs 2/22/2024 10Page 145 of 161 Variable Costs Detail 2/22/2024 11 2021 Rate Study Assumptions Prior Year FY2022-23 Projections FY2023-24 Budget FY2024-25 Groundwater Purchases $ 7,933,477 $ 9,735,880 $ 10,922,275 OCWD Annexation Fee 688,612 717,261 745,951 Power Costs 2,960,152 3,115,016 3,505,425 Import Water Purchases 2,570,435 3,168,158 3,685,419 MWDOC Fixed Costs 1,155,753 1,488,847 1,799,472 $ 15,308,429 $ 18,225,162 $ 20,658,542 Historic & Future Variable Costs FY2022-23 FY2023-24 FY2024-25 Groundwater Purchases $ 6,998,164 $ 7,138,127 $ 7,280,890 OCWD Annexation Fee 542,544 553,395 564,462 Power Costs 1,347,466 1,414,839 1,485,581 Import Water Purchases 5,447,368 5,719,737 6,005,724 MWDOC Fixed Costs 857,008 882,718 909,200 $ 15,192,550 $ 15,708,816 $ 16,245,857 Rate Study Assumptions $ 115,879 $ 2,516,346 $ 4,412,685 Variance %1%16%27% Variance from Assumptions Page 146 of 161 Variable Cost-Budget Calculation 2/22/2024 12 FY2023-25 Budget Calculation Variable costs are set by our operating plan. They are then calculated by the rates and fixed costs received from OCWD and MWDOC. Power is calculated from historical trends in cost by acre-feet and the proposed cost increases from our utilities providers. Variable Cost Prior Year FYE2022-23 Projected FY2023-24 Budget FY2024-25 OCWD Replenishment Assessment (ground water)$558/AF $624/AF $688/AF Variance %10%12%10% Metropolitan Treated Water Rate (imported water)$1,143/$1,209/AF $1,209/$1,256/AF $1,256/$1,465/AF Variance %6%4%17% OCWD Annexation $688,612 $717,261 $745,951 Variance %7%4%4% MWDOC Fixed Costs –Connection Fee $349,759 $344,007 $363,336 Variance %10%0%4% MWDOC Fixed Costs –Capacity Fee $302,776 $322,091 $326,832 Variance %6%1%10% MWDOC Fixed Costs –Readiness to Serve Fee $529,731 $818,292 $1,063,776 Variance %36%54%30% Power $2,960,152 $3,115,016 $3,505,425 Variance %128%5%13% Historic & Future Variable Costs The variance % is the increase/decrease from the previous year. Page 147 of 161 Variable Cost-Budget Calculation 2/22/2024 13 Variable Cost % Increase Per Year FYE2022-23 FY2023-24 FY2024-25 OCWD Replenishment Assessment (ground water)2%$507/AF $517/AF $527/AF Metropolitan Treated Water Rate (imported water)5%$1,159/$1,217/AF $1,217/$1,278/AF $1,278/$1,342/AF OCWD Annexation 2%$542,544 $553,395 $564,462 MWDOC Fixed Costs –Connection Fee 3%$327,457 $337,281 $347,400 MWDOC Fixed Costs –Capacity Fee 3%$226,796 $233,600 $240,608 MWDOC Fixed Costs –Readiness to Serve Fee 3%$302,754 $311,837 $321,192 Power 5%$1,347,466 $1,414,839 $1,485,581 2021 Rate Study Assumptions Variable Cost FYE2022-23 FY2023-24 FY2024-25 OCWD Replenishment Assessment (ground water)10%21%31% Metropolitan Treated Water Rate (imported water)-1%-2%9% OCWD Annexation 27%30%32% MWDOC Fixed Costs –Connection Fee 7%2%5% MWDOC Fixed Costs –Capacity Fee 42%40%49% MWDOC Fixed Costs –Readiness to Serve Fee 75%162%231% Power 120%120%136% The variance % is the increase/decrease from actuals to rate study. Page 148 of 161 Summary of FY2024-25 Budget 2/22/2024 14Page 149 of 161 Financial Summary -Consolidated Revenue Prior Year FY2022-23 Projections FY2023-24 Budget FY2024-25 Revenue (Operating) Revenue (Non-Operating) Total Revenue Rate Study Assumptions Variance % 05/25/2023 Expenses Expenses (Operating): Variable Costs $ 15,308,429 $ 18,225,162 $ 20,658,542 Salary Related Expenses 10,348,225 13,737,956 15,746,996 (Less Capitalized Labor)--(545,000) Supplies & Services Expenses (Non-Operating) Total Expenses Rate Study Assumptions Variance % Net Position Before Capital Contributions & Depreciation Capital Contributions Depreciation Total Net Income (Loss) 15Page 150 of 161 Financial Summary -Water Revenue Prior Year FY2022-23 Projections FY2023-24 Budget FY2024-25 Revenue (Operating) Revenue (Non-Operating) Total Revenue Rate Study Assumptions Variance % 05/25/2023 Expenses Expenses (Operating): Variable Costs $ 15,308,429 $ 18,225,162 $ 20,658,542 Salary Related Expenses 8,782,887 11,622,593 13,214,585 (Less Capitalized Labor)--(445,000) Supplies & Services Expenses (Non-Operating) Total Expenses Rate Study Assumptions Variance % Net Position Before Capital Contributions & Depreciation Debt Service Ratio Per Policy Capital Contributions Depreciation Total Net Income (Loss) 16Page 151 of 161 Financial Summary -Sewer Revenue Prior Year FY2022-23 Projections FY2023-24 Budget FY2024-25 Revenue (Operating) Revenue (Non-Operating) Total Revenue Rate Study Assumptions Variance % 05/25/2023 Expenses Expenses (Operating): Salary Related Expenses $ 1,565,338 $ 2,115,363 $ 2,532,411 (Less Capitalized Labor)--(100,000) Supplies & Services Expenses (Non-Operating) Total Revenue Rate Study Assumptions Variance % Net Position Before Capital Contributions & Depreciation Capital Contributions Depreciation Total Net Income (Loss) 17Page 152 of 161 5-Year CIP 2/22/2024 18Page 153 of 161 19 5-Yr CIP FY25 Budget 2/22/2024 PROJECT NAME FY25 FY26 FY27 FY28 FY29 TOTAL Pressure Regulating Station Projects $-$-$-$-$-$- FY23-24 PRS Replacement Project (750,000 ----750,000 Waterline Projects ------ Fire Flow Enhancement Waterline Projects 2,500,000 250,000 750,000 --3,500,000 Golden Avenue Waterline 308,000 ----308,000 Fire Flow Enhancement Waterline Projects ---300,000 300,000 600,000 Reservoir Projects ------ Fairmont Reservoir Rehab 390,000 650,000 ---1,040,000 Booster Pump Station Projects ------ Timber Ridge BPS 372,000 ----372,000 Lakeview BPS Improvements 289,000 1,320,000 800,000 --2,409,000 Lakeview BPS Improvements (YLWD Labor)-200,000 89,000 --289,000 Box Canyon BPS Improvements ------ Yorba Linda BPS Rehab ---324,000 979,000 1,303,000 Well Projects ------ Well Rehabilitation 208,000 208,000 ---416,000 Well 23 Drilling & Equipping (Offsite well)424,500 897,750 1,778,000 6,703,000 -9,803,250 Well 24 Drilling & Equipping ---1,053,000 2,190,000 3,243,000 Well VFD Upgrades 312,000 ----312,000 Total Water CIP $5,553,500 $3,525,750 $3,417,000 $8,380,000 $3,469,000 $24,345,250 Sewer Main Projects $-$-$-$-$-$- Buena Vista Sewer Main Improvements ---1,130,500 1,130,500 2,261,000 Kellogg Dr Sewer Main Upsize -822,000 2,874,000 330,000 -4,026,000 Sewer System Rehabilitation & Replacement Projects ------ FY25-26 Sewer CIPP Rehabilitation Project -400,000 ---400,000 FY27-28 Sewer CIPP Rehabilitation Project ---500,000 -500,000 Lift Station Projects ------ Green Crest Sewer Lift Station ($300k Grant)700,000 ----700,000 Total Sewer CIP $700,000 $1,222,000 $2,874,000 $1,960,500 $1,130,500 $7,887,000 CIP Total $6,253,500 $4,747,750 $6,291,000 $10,340,500 $4,599,500 $32,232,250 CAPITAL OUTLAY FY25 FY26 FY27 FY28 FY29 TOTAL Vehicle Replacements $362,000 $450,000 $1,020,000 $415,000 $1,225,000 $3,472,000 Building 2 Upgrades -Locker Room 150,000 ----150,000 Replace Car Wash 74,500 ----74,500 Replace Light Tower 35,000 ----35,000 Well #1 -Pratt Valve 25,000 ----25,000 CAPITAL OUTLAY TOTAL $646,500 $450,000 $1,020,000 $415,000 $1,225,000 $3,756,500 GRAND TOTAL -CAPITAL IMPROVEMENT & CAPITAL OUTLAY $6,900,000 $5,197,750 $7,311,000 $10,755,500 $5,824,500 $35,988,750 Page 154 of 161 Updated 1/24/2024rev.SHEET 1 ‐ Draft Projected Baseline CIP FY24‐25 Through FY28‐29 (Using Existing Rate Structure 9% Water, 15% Sewer Annual Increases through FY25‐26) FUNDING CLASS PROJECT NAME FY24-25 FY25-26 FY26-27 FY27-28 FY28-29 TOTAL Waterline Projects FF Fire Flow Enhancement Waterline Projects (Design starts Feb 2024)2,500,000$ 250,000$ 750,000$ 3,500,000$ Booster Pump Station Projects -$ FF, AMP Timber Ridge BPS (Est. Completion 1st quarter FY24-25)372,000$ 372,000$ BPP, AMP Lakeview BPS Improvements (See Pay-Go for additional funding)289,000$ 1,320,000$ 800,000$ 2,409,000$ Pressure Regulating Station Projects -$ AMP, O FY23-24 PRS Replacement Project (Applecreek, Willowbrook, Stone Canyon, Paseo Del Prado)750,000$ 750,000$ Water (Bonds) Total 3,911,000$ 1,570,000$ 1,550,000$ -$ -$ 7,031,000$ Waterline Projects -$ O Golden Avenue Waterline - Pending City of Placentia Schedule 308,000$ 308,000$ FF Fire Flow Enhancement Waterline Projects -$ -$ -$ 300,000$ 300,000$ 600,000$ AMP AMP Waterline Replacement Projects -$ -$ -$ -$ -$ -$ PRS Projects -$ AMP, O Zone 570 (2) PRS Consolidation (Included in FY23-24 PRS Replacement Project - See Bonds)-$ -$ AMP Del Rey PRS Rehab or Replacement -$ -$ -$ AMP Applecreek PRS Rehab or Replacement (Included in FY23-24 PRS Project - See Bonds)-$ O Savi Ranch PRS - Water Infrastructure Redundancy & Resiliency -$ -$ -$ -$ Reservoir Projects -$ AMP Fairmont Reservoir Rehab 390,000$ 650,000$ 1,040,000$ BPP, O Little Canyon Reservoir MOV -$ -$ Booster Pump Station Projects -$ FF, AMP Elk Mountain BPS Rehab -$ -$ FF, AMP Santiago BPS Rehab -$ -$ -$ -$ BPP, AMP Lakeview BPS Improvements (YLWD Labor) - See Bonds for design and construction -$ 200,000$ 89,000$ 289,000$ AMP, O Box Canyon BPS Improvements -$ -$ -$ BPP, AMP Yorba Linda BPS Rehab -$ -$ 324,000$ 979,000$ 1,303,000$ Well Projects -$ BPP, AMP, O Well Rehabilitation 208,000$ 208,000$ 416,000$ BPP Well 23 Drilling & Equipping (Offsite well)424,500$ 897,750$ 1,778,000$ 6,703,000$ 9,803,250$ BPP Well 24 Drilling & Equipping 1,053,000$ 2,190,000$ 3,243,000$ BPP, O Well VFD Upgrades 312,000$ -$ -$ -$ -$ 312,000$ Other -$ O AWIA Resiliency Improvements to District Facilities -$ -$ -$ -$ -$ -$ O AWIA Site and Security Upgrades at District Facilities -$ -$ -$ -$ -$ -$ Water (Pay-Go) Total 1,642,500$ 1,955,750$ 1,867,000$ 8,380,000$ 3,469,000$ 17,314,250$ Water (Bonds & Pay-Go) Total 5,553,500$ 3,525,750$ 3,417,000$ 8,380,000$ 3,469,000$ 24,345,250$ Sewer Main Projects -$ AMP, O Buena Vista Sewer Main Improvements -$ -$ 1,130,500$ 1,130,500$ 2,261,000$ AMP, O Kellogg Dr Sewer Main Upsize 822,000$ 2,874,000$ 330,000$ -$ 4,026,000$ Sewer System Rehabilitation & Replacement Projects -$ AMP, O FY25-26 Sewer CIPP Rehabilitation Project 400,000$ 400,000$ AMP, O FY27-28 Sewer CIPP Rehabilitation Project 500,000$ 500,000$ Lift Station Projects -$ AMP, O Green Crest Sewer Lift Station (Pay-Go)700,000$ 700,000$ *Green Crest Sewer Lift Station (Grant)300,000$ 300,000$ Sewer (Pay-Go Only) Total 700,000$ 1,222,000$ 2,874,000$ 1,960,500$ 1,130,500$ 7,887,000$ Sewer (Grants* Only) Total 300,000$ -$ -$ -$ -$ 300,000$ Sewer (Pay-Go & Grants*) Total 1,000,000$ 1,222,000$ 2,874,000$ 1,960,500$ 1,130,500$ 8,187,000$ TOTAL WATER AND SEWER CIP EXCLUDING GRANT ALLOCATION 6,253,500$ 4,747,750$ 6,291,000$ 10,340,500$ 4,599,500$ 32,232,250$ AMP (CB) Asset Management Plan/Condition Based O BPP Basin Production Percentage (Maximize groundwater to reliably achieve 85% BPP) FF Differences between Sheet 1 and Sheet 2 WATER BONDS PAY-GO Fire Flow Enhancements Water Supply Optimization PAY-GO WATER SEWER Page 155 of 161 Updated 1/24/2024rev.SHEET 2 ‐ Draft Projected CIP FY24‐25 Through FY28‐29 per the Water Master Plan, AMP, and Wastewater Master Plan FUNDING CLASS PROJECT NAME FY24-25 FY25-26 FY26-27 FY27-28 FY28-29 TOTAL Waterline Projects -$ FF Fire Flow Enhancement Waterline Projects (Design starts Feb 2024)2,500,000$ 250,000$ 750,000$ -$ -$ 3,500,000$ Booster Pump Station Projects -$ FF, AMP Timber Ridge BPS (Est. Completion 1st quarter FY24-25)372,000$ -$ -$ -$ -$ 372,000$ BPP, AMP Lakeview BPS Improvements (See Pay-Go for additional funding)688,000$ 1,721,000$ -$ -$ -$ 2,409,000$ Pressure Regulating Station Projects -$ AMP, O FY23-24 PRS Replacement Project (Applecreek, Willowbrook, Stone Canyon, Paseo Del Prado)750,000$ -$ -$ -$ -$ 750,000$ Water (Bonds) Total 4,310,000$ 1,971,000$ 750,000$ -$ -$ 7,031,000$ Waterline Projects -$ O Golden Avenue Waterline - Pending City of Placentia Schedule 308,000$ 308,000$ FF Fire Flow Enhancement Waterline Projects 2,706,000$ 3,203,000$ 2,114,000$ 2,792,000$ 3,616,000$ 14,431,000$ AMP AMP Waterline Replacement Projects 3,120,000$ 2,651,000$ 3,375,000$ 3,510,000$ 3,650,000$ 16,306,000$ PRS Projects -$ AMP, O Zone 570 (2) PRS Consolidation (Included in FY23-24 PRS Replacement Project)1,487,000$ 1,487,000$ AMP Del Rey PRS Rehab or Replacement 312,000$ 1,947,000$ 2,259,000$ AMP Applecreek PRS Rehab or Replacement (Included in FY23-24 PRS Replacement Project)-$ -$ O Savi Ranch PRS - Water Infrastructure Redundancy & Resiliency -$ 811,000$ 1,125,000$ 1,189,000$ 3,125,000$ Reservoir Projects -$ AMP Fairmont Reservoir Rehab 1,040,000$ -$ 1,040,000$ BPP, O Little Canyon Reservoir MOV 225,000$ 225,000$ Booster Pump Station Projects -$ FF, AMP Elk Mountain BPS Rehab 912,000$ 912,000$ FF, AMP Santiago BPS Rehab 844,000$ 2,457,000$ 2,555,000$ 5,856,000$ BPP, AMP Lakeview BPS Improvements (YLWD Labor) - See Bonds for design and construction 144,000$ 145,000$ -$ 289,000$ AMP, O Box Canyon BPS Improvements 562,000$ 1,065,000$ 1,627,000$ BPP, AMP Yorba Linda BPS Rehab 324,000$ 979,000$ -$ -$ 1,303,000$ Well Projects -$ BPP, AMP, O Well Rehabilitation 416,000$ 433,000$ 849,000$ BPP Well 23 Drilling & Equipping 1,040,000$ 2,704,000$ 2,812,000$ 6,556,000$ BPP Well 24 Drilling & Equipping 1,053,000$ 2,190,000$ 3,243,000$ BPP, O Well VFD Upgrades 312,000$ 324,000$ 337,000$ 973,000$ Other -$ O AWIA Resiliency Improvements to District Facilities 381,000$ 397,000$ 412,000$ 429,000$ 446,000$ 2,065,000$ O AWIA Site and Security Upgrades at District Facilities 381,000$ 397,000$ 412,000$ 429,000$ 446,000$ 2,065,000$ Water (Pay-Go) Total 11,647,000$ 13,336,000$ 13,197,000$ 12,924,000$ 13,815,000$ 64,919,000$ Water (Bonds & Pay-Go) Total 15,957,000$ 15,307,000$ 13,947,000$ 12,924,000$ 13,815,000$ 71,950,000$ Sewer Main Projects -$ AMP, O Buena Vista Sewer Main Improvements -$ 1,130,500$ 1,130,500$ -$ -$ 2,261,000$ AMP, O Kellogg Dr Sewer Main Upsize -$ -$ -$ 1,917,000$ 1,917,000$ 3,834,000$ Sewer System Rehabilitation & Replacement Projects -$ AMP, O FY25-26 Sewer CIPP Rehabilitation Project -$ 400,000$ -$ -$ -$ 400,000$ AMP, O FY27-28 Sewer CIPP Rehabilitation Project -$ -$ -$ 500,000$ -$ 500,000$ Lift Station Projects -$ AMP, O Green Crest Sewer Lift Station (Pay-Go)700,000$ -$ -$ -$ -$ 700,000$ *Green Crest Sewer Lift Station (Grant)300,000$ -$ -$ -$ -$ 300,000$ Sewer (Pay-Go Only) Total 700,000$ 1,530,500$ 1,130,500$ 2,417,000$ 1,917,000$ 7,695,000$ Sewer (Grants* Only) Total 300,000$ -$ -$ -$ -$ 300,000$ Sewer (Pay-Go & Grants*) Total 1,000,000$ 1,530,500$ 1,130,500$ 2,417,000$ 1,917,000$ 7,995,000$ TOTAL WATER AND SEWER CIP EXCLUDING GRANT ALLOCATION 16,657,000$ 16,837,500$ 15,077,500$ 15,341,000$ 15,732,000$ 79,645,000$ AMP (CB) Asset Management Plan/Condition Based O BPP Basin Production Percentage (Maximize groundwater to reliably achieve 85% BPP) FF Differences between Sheet 1 and Sheet 2 Fire Flow Enhancements PAY-GO WATER BONDS PAY-GO WATER SEWER Water Supply Optimization Page 156 of 161 ITEM NO. 9.4. AGENDA REPORT MEETING DATE: February 22, 2024 TO: Board of Directors FROM: Mark Toy, General Manager STAFF CONTACTS: Joanna Gonzalez, Public Affairs Officer SUBJECT: Communications Goals, Objectives, and Strategies The attached slides have been included for reference in preparation for input from the Board of Directors. ATTACHMENTS: 1. Slide Deck - Communications Plan Page 157 of 161 Communications Plan: Goal, Objectives, Strategies 02/22/24 Board of Directors Regular Meeting 1Page 158 of 161 2 COMMUNICATIONS PLAN COMMUNICATIONS GOAL To increase public awareness about Yorba Linda Water District and the services the District provides. Page 159 of 161 3 COMMUNICATIONS PLAN COMMUNICATIONS OBJECTIVES A.Enhance YLWD’s visibility and positive recognition B.Increase awareness of YLWD and water among key audiences C.Unify YLWD messaging and publications Page 160 of 161 4 COMMUNICATIONS PLAN COMMUNICATIONS STRATEGIES Objective A Enhance YLWD’s visibility & positive recognition Objective B Increase awareness of YLWD & water among key audiences Objective C Unify YLWD messaging & publications Facilitate accolades & awards for YLWD Improve YLWD’s publications & social media Establish analytics for ylwd.com, social media, & email campaigns Manage YLWD’s community & industry relations campaigns Operate YLWD’s Water Donations Programs Improve overall engagement on social media platforms Strengthen YLWD’s communications consistency by using one look, one voice Provide YLWD Board & staff with key messages & information Page 161 of 161