Directors Officers*

(F2) – Content & Clarity Ratings for EXECUTIVE Compensation Cost Content and Clarity for the OC cities elected officials and executives over $100,000 in base salary is improving in this 2nd year of ratings. On the other hand, there is understandably even more potential improvement possible for the Special Districts and joint power authority, which are in their 1st year of ratings. PO Box 8300 18700 Ward Street (714) 378-3200 www.ocwd.com Fountain Valley, CA 92728-8300 Fountain Valley, CA 92708 (714) 378-3373 fax Special Districts and Joint Power Authority (JPA): Only three of 23 special districts/JPA (13%) were rated excellent for Executive Compensation Cost Content and Clarity. 19 of 23 special districts/JPA who received ratings of good, average, poor and nonexistent for Executive Compensation Cost and improve to achieve an excellent rating.26 The District concurs with the overall goal of the Grand Jury to improve upon executive compensation transparency. The District has worked over the past several months to improve the clarity and content of executive staff compensation and welcomes another review by the Grand Jury of our website.

(F3) - Content & Clarity for EMPLOYEE Compensation Cost Ratings There is the most opportunity for more transparent reporting in the Content and Clarity of Employee Compensation Cost reporting on local government websites. o Special Districts and Joint Power Authority (JPA): Only four of 23 special districts and joint power authority (17%) were rated excellent for Employee Compensation Cost Content and Clarity. 19 of the 23 special districts/JPA were rated good, average, poor • and nonexistent for Employee Compensation Cost Content and Clarity, all of whom could improve to excellent. The District concurs and has also worked over the past several months to improve the clarity and content of employee compensation and welcomes another review by the Grand Jury of our website.

(F4) - Transparency of Employer Pension Contribution Rates Many Orange County local government web sites do not generally post their employer pension annual contribution rates prominently to their web sites as part of their compensation cost disclosure for public disclosure. Specifically, these employer contribution percentages refer to the annual percentages of employee salary that CalPERS (California Public Employees Retirement System) or OCERS (Orange County Employee Retirement System) requires of Orange County local governments to fund their employee guaranteed pension plans. OCERS has the employer pension contribution rates buried in detailed actuarial reports and presentations on the OCERS website or requires member passwords to access these annual government funding rates. Thus, there is limited transparency for the public of these governmental pension contribution rates. The District concurs but does not belong to CalPERS or OCERS and has a defined contribution retirement plan which is included in our employee and executive staff compensation tables.

(F5) – Inclusion of Overtime & On-Call Pay in Employee Compensation Costs The Orange County "de facto" standard for CCT in the county, cities, districts and JPA now contains all employees, including a page for executives and all elected officials. Two key categories are missing from compensation cost reporting. They are overtime pay and on-call pay. They have become important as the new "de facto" compensation cost reporting standard which now includes all employees. These two cost categories can be significant for public safety employees. However, it is recognized that these cost categories generally do not apply to elected officials. On the other hand, if overtime does not occur for various employee positions, it is important for citizens to be aware of the aware of that in the annual reporting. The District concurs - Overtime and On-Call Pay is a relatively minimal amount at the District and has been included in the overall compensation tables.