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ADMINISTRATIVE PROCEDURES TABLE OF CONTENTS BY DEPARTMENT Procedure Department Number Title ADVERTISEMENT AND AWARD FOR GOODS AND PROFESSIONAL Administration AP/89-07A SERVICES Administration AP/89-08G SELECTION PROCESS FOR PROFESSIONAL SERVICES Administration AP/90-11 PUBLIC RECORDS PROCEDURE Administration AP/96-32A USE OF AUTHORITY VEHICLES AND EQUIPMENT Administration AP/00-37A INTERNET ACCESS, E-MAIL, COMPUTER AND VOICE MAIL USE Customer Service AP/89-05A PROCEDURE FOR BILL INSERTS/MESSAGES Customer Service AP/91-19A CUSTOMER BILLING INQUIRIES/DISPUTES Customer Service AP/91-23A HIGH BILL DISPUTES Customer Service AP/96-29A SEWER BACKUP PROCEDURE Finance AP/89-01B BUSINESS EXPENSE REIMBURSEMENT PROCEDURE Finance AP/89-06 ANNUAL BUDGETARY PROCESS Finance AP/89-09A BUDGET ADJUSTMENTS Finance AP/90-14D INVESTMENT POLICY Finance AP/91-18A ACCOUNTING PROCEDURE, MASTER PLAN CONTRIBUTED ASSETS Finance AP/91-20B DISPOSAL OF CAPITAL ASSETS OR OTHER AUTHORITY PROPERTY Finance AP/91-21B CAPITALIZATION POLICY Finance AP/91-22B BAD DEBT WRITE-OFF POLICY HR/Personnel AP/90-13B ATTENDANCE AND PUNCTUALITY STANDARDS HR/Personnel AP/90-15B EMPLOYEE DISABILITY (NON-WORK RELATED) HR/Personnel AP/93-25C FAMILY AND MEDICAL LEAVE POLICY HR/Personnel AP/93-26B EMPLOYMENT PROCESS HR/Personnel AP/93-27 EMPLOYMENT OF RELATIVES HR/Personnel AP/95-28C DRUG FREE WORK PLACE HR/Personnel AP/96-30C PART-TIME EMPLOYMENT HR/Personnel AP/96-33A EMPLOYEE GRIEVANCE PROCEDURE HR/Personnel AP/00-36 HARASSMENT/DISCRIMINATION HR/Personnel AP/00-38A TUITION REIMBURSEMENT Operations AP/89-02 APPROVAL OF CONSTRUCTION AND ENGINEERING CHANGE ORDERS Operations AP/90-10B EASEMENT ABANDONMENT PROCEDURE Operations AP/90-12A RETROACTIVE BACKFLOW PREVENTER INSTALLATION PROCEDURE Payroll AP/90-16A WORK RELATED DISABILITY SEVERANCE PAY Payroll AP/90-17A PAY GRADE/SALARY ADJUSTMENTS, TREATMENT PLANT OPERATORS Payroll AP/92-24C PAY IN LIEU OF VACATION LEAVE POLICY Payroll AP/96-31C SICK LEAVE CONVERSION PAY Payroll AP/98-34A SAFETY FOOTWEAR SUBSIDY Payroll AP/00-35D COMPENSATORY TIME Payroll AP/00-39C DONATED SICK LEAVE POLICY Purchasing AP/89-03G PURCHASING PROCEDURE ADMINISTRATIVE PROCEDURES TABLE OF CONTENTS BY PROCEDURE Procedure NUMBER Department Number Title Finance AP 89-01C BUSINESS REIMBURSEMENT EXPENSE Operations AP 89-02 APPROVAL OF CONSTRUCTION & ENGINEERING CHANGE ORDERS Purchasing AP 89-03G PURCHASING ADOPTION OF REVISED RATES, FEES, REVISION TO UNIFORM EXTENSION Administration AP 89-04 POLICY SERVICE POLICY OR PERSONNEL POLICY - DELETED Customer Service AP 89-05A PROCEDURE FOR BILL INSERTS MESSAGES Finance AP 89-06A ANNUAL BUDGETARY PROCESS Administration AP 89-07A ADVERTISEMENT & AWARD FOR GOODS & PROFESSIONAL SERVICES Administration AP 89-08G SELECTION PROCESS FOR PROFESSIONAL SERVICES Finance AP 89-09B BUDGET ADJUSTMENTS Operations AP 90-10B EASEMENT ABATEMENT Administration AP 90-11 PUBLIC RECORDS Operations AP 90-12A RETROACTIVE BACKFLOW PREVENTOR INSTALLATION HR/Personnel AP 90-13B ATTENDANCE, PUNCTUALITY STANDARDS Finance AP 90-14D INVESTMENT POLICY HR/Personnel AP 90-15B EMPLOYEE DISABILITY - NON WORK Payroll AP 90-16A WORK RELATED DISABILITY SEVERANCE PAY Payroll AP 90-17A PLANT OPERATORS PAY GRADE SALARY Finance AP 91-18A MASTER PLAN CONTRIBUTED ASSETS Customer Service AP 91-19A CUSTOMER BILLING INQUIRIES DISPUTES Finance AP 91-20B DISPOSAL OF CAPITAL ASSETS Finance AP 91-21B CAPITALIZATION Finance AP 91-22B BAD DEBT WRITE OFF Customer Service AP 91-23A HIGH BILL DISPUTES Payroll AP 92-24C PAY IN LIEU OF VACATION LEAVE HR/Personnel AP 93-25C FMLA REVISED HR/Personnel AP 93-26B EMPLOYMENT PROCESS HR/Personnel AP 93-27 EMPLOYMENT OF RELATIVES HR/Personnel AP 95-28C DRUG FREE WORK PLACE Customer Service AP 96-29A SEWER BACKUP HR/Personnel AP 96-30C PART TIME EMPLOYMENT Payroll AP 96-31C SICK LEAVE CONVERSION PLAN Administration AP 96-32A USE OF VEHICLE & EQUIPMENT HR/Personnel AP 96-33A EMPLOYEE GRIEVANCE PROCEDURE Payroll AP 98-34A SAFETY FOOTWEAR Payroll AP 00-35D COMPENSATORY TIME HR/Personnel AP 00-36 HARASSMENT/DISCRIMINATION Administration AP 00-37A INTERNET ACCESS, EMAIL, COMPUTER, VOICE MAIL HR/Personnel AP 00-38A TUITION REIMBURSEMENT Payroll AP 00-39C DONATED SICK LEAVE Finance AP 05-40 INVESTMENT POLICY-MONEY PURCHASE PLAN Finance AP 05-41 PENSION LOAN POLICY Page 1 of 8 ADMINISTRATIVE PROCEDURE SUBJECT: PURCHASING PROCEDURE PROCEDURE NUMBER: AP/89-03G ORIGINATED DATE: JULY 28, 1993 REVISED DATES: 12/16/98, 5/22/00, 7/26/00, 6/26/02, 11/17/04, 8/24/05, 6/28/06 Introduction Other Procedures governing the Purchasing/Contract process: AP/89-02 Approval of Construction and Engineering Change Orders AP/89-07 Advertisement and Award for Goods and Professional Service AP/89-08 Selection Process for Professional Services The Purchasing System is designed to establish control over cash expenditures prior to the commitment of funds. The system makes essential the use of requisitions, purchase orders, and payment request forms for all materials, services and construction. It also centralizes purchasing in some instances so that advantages can be taken of discounts on bulk or multiple purchases. It is also the intent of this procedure to provide for the procurement of goods and services from a responsible vendor at the lowest possible cost. It is further intended that this procedure provide an orderly, efficient and well documented process for the purchase of goods and services. When in conflict, the spirit of this procedure shall supersede the letter of it and any employee found to be in violation of its intent will be subject to disciplinary action. Furthermore, where allowed by law, any such employee will be held personally liable for losses incurred by the Authority arising from his/her malfeasance. Note: From time to time, Seacoast may implement certain administrative changes that will alter paperwork handling details set forth in this Procedure. However, staff may not assume greater purchasing authority than herein set forth. Responsibilities Every supervisory employee is responsible for assuring that any materials and services used to complete tasks assigned to their supervision have been properly requisitioned, covered by an appropriation, and approved before the materials are withdrawn from the stores warehouse or ordered from a supplier. I. PETTY CASH FUNDS - $0 to $50.00 A. SUA maintains petty cash funds in the amount of $1,200.00 to facilitate the purchase or reimbursement of minor expenditures (less than $100.00). All purchasing and payment request policies apply to expenditures paid through petty cash. The use of petty cash funds must not circumvent the purchasing policies. B. Maintenance of Petty Cash Funds: Responsibility for custody and appropriate disbursement of petty cash may be delegated by the Department Head to a Fund Custodian. However, the Department Head will continue to be responsible for reviewing and approving all expenditures when a Payment Request Form (PRF) is generated to replenish a petty cash fund. Page 2 of 8 The designated Fund Custodian is responsible for the security of the petty cash fund and ensuring that the Petty Cash Form is correctly filled out and required receipts and/or documentation are attached. The Finance Department will audit the documentation to confirm that the proper procedures have been followed. C. Documentation Required: Receipt(s), attached to an approved Petty Cash Form, must be submitted for any expenditure to be reimbursed from petty cash funds. If petty cash is advanced for a pending expenditure, the appropriate section of a Petty Cash Form must be completed and authorized by the appropriate Department Head. After the expenditure has occurred, appropriate receipts must be attached to the back of the Petty Cash Form. The individual who receives a petty cash advance from the Fund Custodian must return receipts by the end of the next working day or the amount will be subject to payroll deduction. Under no circumstances shall petty cash be "borrowed" for personal expenditures. If petty cash is utilized for expenses involving such items as a business luncheon, the name of the individual(s) attending the luncheon, their title or affiliation, and the nature of the business must be documented. In addition, a receipt must be attached. Petty cash may be utilized for purchases up to $50.00 (up to $100.00 if approved by the Executive Director, Finance Department Manager or a Division Director). 1. Expenditures must be authorized and approved by the Department Manager. 2. A Petty Cash Form with receipts attached must be submitted for reimbursement. 3. A Petty Cash Form may be used for advances. Advances must be cleared BY THE END OF THE NEXT WORKING DAY or be subject to payroll deduction. 4. Purchases may NOT be divided into multiple reimbursement transactions to fall within the $50.00 limitation requirement. 5. Regardless of expenditure authority, NO employee may submit and approve his or her own petty cash reimbursement. 6. Any expenditure made by Department Managers, to be reimbursed by petty cash, shall be approved by their Division Director. 7. All petty cash funds will be audited annually by a designated person from outside the area. II. REQUISITIONS FOR SMALL PURCHASES - $0 to $500.00 Purchase Requisitions should be created for purchases up to $500.00. A. Purchases must be within budget constraints and authorized by the Supervisor or Department Manager. B. Multiple quotes are recommended but not required. C. Purchases may not be divided into multiple reimbursement transactions to fall within the $500.00 limitation requirement. Page 3 of 8 D. Preferred vendors (Bids awarded by or on behalf of other governmental entities, sole-source suppliers, or vendors who demonstrate that they offer consistently low prices and good service) should be utilized. III. REQUISITIONS FOR PURCHASES OF $500.01 - $1,000.00 Requisitions must be created for all purchases of $500.01 to $1,000.00, with Supervisor approval. A. Requisitions will be completed and shall include the approval of the Supervisor. B. Quotations by the Purchasing Department: 1. Not required for purchases from designated lowest price vendors, for sole source vendors, or when utilizing bids awarded by on behalf of other governmental entities. 2. Two quotations (telephone or written) are recommended from vendors other than above. Managers should forward a copy of quotes to Purchasing Agent to attach to Purchasing Department file copy. IV. REQUISITIONS FOR PURCHASES OF $1,000.01 - $3,000.00 Requisitions must be created for all purchases of $1,000.99 to $2,000.00, with a Department Manager approval and for $2,000.99 to $3,000.00 with a Division Director approval. A. A minimum of three quotes (telephone or written) must be secured and forwarded to the Purchasing Department to accompany the requisition. B. Quotes are not required for purchases from designated lowest price vendors, for sole source vendors, or when utilizing bids awarded by or on behalf of other governmental entities. V. REQUISITIONS FOR PURCHASES OF $3,000.99 - $24,999.99 Requisitions must be created for all purchases of $3,000.99 to $24,999.99 with Executive Director approval. A. A minimum of three written quotes must be secured and forwarded to the Purchasing Department to accompany the requisition. Exceptions: Sole source vendors and when utilizing bids awarded by or on behalf of other governmental entities. B. Exceptions to the requirement for written bids will be considered on a case by case basis by the Executive Director in advance of purchase. VI. PURCHASES OF $25,000.00 OR MORE The majority of goods/services purchased by Seacoast are normally acquired through a formal bid process. This happens because the item/service is clearly identified and therefore price becomes the final determinant. Construction related purchases/contracts are required to be formal bids by statute. Page 4 of 8 On occasion, request-for-proposals may be more appropriate if the using department needs input on the type/delivery of service, goods, etc., where price may not be the final determinant. Please consult with the Executive Director or Finance Department Manager on this type of activity. If possible, any known criteria used to evaluate the proposals should be published as part of the advertisement to ensure some conformity of proposals for evaluation. For specifics on the advertisement, award and selection process for professional services, see AP/89-07 and AP/89-08. When formal bids are used/required: A. Bids received by or on behalf of governmental entities, including but not limited to federal, state, county, municipal, or special district, may be considered formal bids for the purpose of administering this section, where not otherwise prohibited by law. B. Formal Bid Procedure 1. It is necessary for the originating department to contact the Operations Administrative Assistant to obtain a Formal Bid Number, and a date and time for the bid opening to be held. After this number has been issued, a copy of the proposed specifications will be sent to the Purchasing Agent, and if applicable, to the SUA attorney. A Bid Sheet should be attached to the specifications stating quantity, unit price, total price, and other information as necessary. PLEASE BE SURE TO INCLUDE A LINE FOR THE VENDOR TO PROVIDE THE TAX I.D. NUMBER. If the originating department does not include a Bid Sheet, one will be prepared by the Purchasing Agent. Major capital improvements must be budgeted and prior approval of the Authority Board for soliciting bids must be received. 2. Invitation to Bid Notices also must be placed in a newspaper at minimum in accordance with Florida Statute 255.0525(2). On occasion it may be necessary to advertise more than is required by Florida Statute. The ads should be prepared and placed by the originating department. 3. After the bids have been opened, a copy of the Bid Summary will be provided to the originating department. Bids may be taken out of Purchasing for review, but one original must be permanently retained by the Purchasing Agent. The Purchasing Agent and the originating department will recommend which vendor to select. 4. The originating department will prepare a staff report and a Purchase Requisition (or contract) for the Executive Director's approval prior to consideration by the Authority Board. (Note: Contracts must be approved by the SUA attorney prior to submission to the Executive Director.) The award of bids shall be made within (90) ninety days of the original advertisement. 5. It will be the responsibility of the originating department to obtain all the necessary forms (executed contracts, certificates of insurance, bonds, etc.) and to submit the completed original documents to the Clerk’s Fire Files for permanent record keeping. In accordance with Section 255.05(1), Florida Statutes, no public construction bond is required for construction contracts with a total value of $100,000 or less. 6. The return of any Cashier's Checks shall be coordinated with the Purchasing Department. C. The Executive Director shall have the authority to approve progress payments exceeding $25,000.00 provided that: 1. A contract has been previously approved by the Authority Board; Page 5 of 8 2. The progress payment, when added to the sum total of previous payments, does not exceed the original contract amount plus authorized change orders. VII. CHANGE ORDERS Change Orders are not required for reasonable freight charges, not to exceed $50.00. Change Orders are not required for decreases in the amount originally encumbered by the Purchase Order. The Finance Department will credit the proper account number when the Purchase Order is cleared. Change Orders are required if the increase exceeds 10% of the original Purchase Order. The Change Order must be approved by the person that originated the Purchase Order. If the Change Order results in a total purchase cost that exceeds the budgeted amount for that item or expense code, approval of the Executive Director is required. For change orders related to Construction/Engineering, see AP/89-02. VIII. USE OF PAYMENT REQUEST FORMS (PRFs) A. Purpose of PRFs (See Exhibit D): 1. Most purchases by SUA are initiated by a Purchase Requisition and authorized by a Purchase Order. However, there are certain circumstances where the use of this mechanism is unnecessarily cumbersome (i.e., small payments for a magazine subscription, monthly payments on a contract, etc.). In these situations, a payment request form may be used to authorize payment only under the circumstances explained below. The purchasing guidelines as outlined by the purchasing procedures shall not be exceeded. B. Requirements for PRFs: 1. A PRF shall not exceed $1,500.00 (except as noted below) and shall be prepared and signed by the departmental originator and approved by the appropriate Department Manager /Division Director. 2. Payments not wholly chargeable to one department require the Department Head signatures from all applicable departments. 3. Examples of the expenses exempt from the $1,500.00 limit providing they are budgeted items and are approved are as follows: Page 6 of 8 Approval of Approval of Approval of A Executive Director Finance Manager Division Director Computer Maintenance Payroll Taxes Membership/Meeting Membership/Meeting Expenses Employee Benefits Expenses if under Training $3,001.00 Auto/Travel Allowance Withholding Taxes Training if General Legal Expense under $3,001.00 Monthly Progress Payments on Petty Cash Pre-approved Professional Debt Service Payments Telephone bills Services or Construction Computer Maintenance Utility bills Board Services Fees if under $2,000.99 Employee Insurance Customer Refunds Membership/Meeting Expenses General Insurance (adjustments) if under $2,000.99 if under $2,000.99 Deductible Payments Franchise (Utility Service Tax) Training if under Governmental Agency Fees $2,000.99 Postage/Postmaster Director Fees IX. PURCHASE ORDERS A. The Purchasing Agent, working from the data provided from the properly completed and approved Purchase Requisition and supported by an appropriation of funds (and a contract when necessary), will select the vendor, ascertain that the materials are available, and that the price is the best with consideration of the quantity, quality and service requirements of the items purchased. B. "Blanket" Purchase Orders may be issued when appropriate for standard recurring expenditures such as maintenance items. However, the blanket P.O. must be covered by an approved contract or state bid. Such items may be covered by a blanket P.O. for the current fiscal year provided, however, the contract is in effect for the same period. For any contract or bid that carries over into the next fiscal year, the blanket P.O. should initially be issued for goods/services through September 30 of that year. At the start of the next fiscal year, a new blanket P.O. should be issued for the remaining time on the contract. X. AUTHORITY CREDIT CARD An Authority credit card is available for purchases where a Purchase Order is not accepted (hotel reservations, Internet purchases, point of purchase sales, etc.) The card may be accessed through the Executive Director, Director of Administrative Services or Finance Department Manager. A. The use of the Authority credit card must not circumvent purchase policies as detailed in this policy. B. Personal use of the Authority credit card is strictly prohibited under any circumstances. Page 7 of 8 XI. ADDITIONAL REQUIREMENTS A. Vendor Complaints and Disputes The Purchasing Agent or his/her representative shall post a tabulation of competitive sealed bids on a bulletin board located in the Purchasing office. If the affected Department Manager of Division Director determines that there is reason to not recommend award to the lowest bidder or bidders, that person will notify the affected vendors of the decision as well as the Purchasing Agent for posting, any person adversely affected by the decision or intended decision of award must file a written notice of protest within 48 hours from time of notification/posting. This notice must be delivered to the Purchasing Agent or his/her representative and must contain all information as outlined in the Purchasing Procedure. 1. A Bidder must file a written protest with Owner within forty-eight (48) hours of the Owner’s issuance and posting of a Notice of Award. The Notice of Award shall be posted at Owner’s place of business, be supplied to all Bidders and shall contain therein an indication of the date and time on which the Notice was posted at the Owner’s place of business. 2. The protest must be in writing and must identify the protester and the solicitation and shall include a factual summary of the basis of the protest. Such protest is considered filed when it is received by the Owner. 3. The hearing on the Protester’s Bid protest shall be conducted before the Board of Seacoast Utility Authority. All hearings shall be open to the public, and a tape recorded record shall be kept of all hearings. Both the Protester and the staff of Seacoast Utility Authority shall be entitled to present evidence to the Board. 4. At the hearing, the burden of proof shall be upon the Protester to show by clear and convincing evidence that the award should be overturned. 5. The Owner shall notify the Protester and the intended Awardee by regular mail of the time, date and location of the scheduled hearing. 6. Formal rules of evidence shall not apply, but fundamental due process shall be observed and shall govern the proceedings. At the conclusion of the hearing, the Board shall make a determination, by majority vote (as calculated pursuant to the Interlocal Agreement for Seacoast Utility Authority). Any such determination by Seacoast’s Board shall be final and binding and the Protester’s sole remedy thereafter shall be to petition to the Circuit Court of Palm Beach County, by certiorari, to show that the Protester was denied fundamental due process. In the event of a timely protest, the procurement shall be halted unless the Authority Board determines that award of a contract without delay is necessary to protect the interests of the Utility. Page 8 of 8 B. Tie Bids All tie bids shall be awarded by the Authority Board. Tie bids may be awarded to one of the bidders based on: 1. Availability or completion period 2. Service availability or facility 3. Previous vendor record 4. Closeness to the delivery point C. Emergency Procedure In the event that material or a service is needed and time is a factor, employee will call the Purchasing Department. The Purchasing Department will determine if there is a preferred vendor and issue a Purchase Order number to the employee. It will be the responsibility of the employee to obtain from the vendor all pertinent information, pricing, terms, etc., and complete a Purchase Requisition as quickly as possible. This is an emergency procedure and will not be used to circumvent normal procedures. When an emergency purchase in excess of $25,000.00 is required, the above procedure shall be followed except that direct approval of the Executive Director is required. The Executive Director shall seek further approval of the Authority Board Chairman, or if the Chairman is unavailable, any other member of the Authority Board. If the Executive Director is unavailable, his/her role with regard to this emergency procedure will be carried out by either the Director of Administrative Services or the Director of Operations. ADMINISTRATIVE PROCEDURES TABLE OF CONTENTS POLICY NUMBER DEPT POLICY # DESCRIPTION PAYROLL AP 00-35C COMPENSATORY TIME HR/PERSONNEL AP 00-36 HARASSMENT/DISCRIMINATION ADMINISTRATION AP 00-37A INTERNET ACCESS, EMAIL, COMPUTER, VOICE MAIL HR/PERSONNEL AP 00-38 TUITION REIMBURSEMENT PAYROLL AP 00-39A DONATED SICK LEAVE FINANCE AP 05-40 INVESTMENT POLICY-MONEY PURCHASE PLAN FINANCE AP 05-41 PENSION LOAN POLICY FINANCE AP 89-01C BUSINESS REIMBURSEMENT EXPENSE OPERATIONS AP 89-02 APPROVAL OF CONSTRUCTION & ENGINEERING CHANGE ORDERS PURCHASING AP 89-03F PURCHASING ADOPTION OF REVISED RATES, FEES, REVISION TO UNIFORM EXTENSION ADMINISTRATION AP 89-04 POLICY SERVICE POLICY OR PERSONNEL POLICY CUSTOMER SERVICE AP 89-05A PROCEDURE FOR BILL INSERTS MESSAGES FINANCE AP 89-06A ANNUAL BUDGETARY PROCESS ADMINISTRATION AP 89-07 ADVERTISEMENT & AWARD FOR GOODS & PROFESSIONAL SERVICES ADMINISTRATION AP 89-08F SELECTION PROCESS FOR PROFESSIONAL SERVICES FINANCE AP 89-09B BUDGET ADJUSTMENTS OPERATIONS AP 90-10A EASEMENT ABATEMENT ADMINISTRATION AP 90-11 PUBLIC RECORDS OPERATIONS AP 90-12 RETROACTIVE BACKFLOW PREVENTOR INSTALLATION HR/PERSONNEL AP 90-13A ATTENDANCE, PUNCTUALITY STANDARDS FINANCE AP 90-14C INVESTMENT POLICY HR/PERSONNEL AP 90-15B EMPLOYEE DISABILITY - NON WORK PAYROLL AP 90-16 WORK RELATED DISABILITY SEVERANCE PAY PAYROLL AP 90-17 PLANT OPERATORS PAY GRADE SALARY FINANCE AP 91-18 MASTER PLAN CONTRIBUTED ASSETS CUSTOMER SERVICE AP 91-19A CUSTOMER BILLING INQUIRIES DISPUTES FINANCE AP 91-20A DISPOSAL OF CAPITAL ASSETS FINANCE AP 91-21A CAPITALIZATION FINANCE AP 91-22B BAD DEBT WRITE OFF CUSTOMER SERVICE AP 91-23A HIGH BILL DISPUTES PAYROLL AP 92-24B PAY IN LIEU OF VACATION LEAVE HR/PERSONNEL AP 93-25C FMLA REVISED HR/PERSONNEL AP 93-26A EMPLOYMENT PROCESS HR/PERSONNEL AP 93-27 EMPLOYMENT OF RELATIVES HR/PERSONNEL AP 95-28B DRUG FREE WORK PLACE CUSTOMER SERVICE AP 96-29 SEWER BACKUP HR/PERSONNEL AP 96-30B PART TIME EMPLOYMENT PAYROLL AP 96-31B SICK LEAVE CONVERSION PLAN ADMINISTRATION AP 96-32 USE OF VEHICLE & EQUIPMENT HR/PERSONNEL AP 96-33 EMPLOYEE GRIEVANCE PROCEDURE PAYROLL AP 98-34 SAFETY FOOTWEAR Page 1 of 5 ADMINISTRATIVE PROCEDURE SUBJECT: BUSINESS EXPENSE REIMBURSEMENT PROCEDURE PROCEDURE NUMBER: AP/89-01C ORIGINATED DATE: September 25, 1989 REVISED DATES: 8/25/99, 3/26/03, 6/22/05 Introduction Seacoast Utility Authority pays or reimburses the cost of certain meeting and travel expenses for employees and Board members who incur such qualified expenses in the course of their employment with or service to SUA. In order to be considered reimbursable, these expenses must be related to the conduct of official business or attendance at professional meetings, conferences, or training sessions which promote overall job knowledge. This policy is designed to control expenditures and ensure compliance with Florida Statutes, requirements of professional licensing Boards, Internal Revenue Service requirements and Authority Board direction. Failure to comply may result in either or all of the following actions: - Withholding of pay in the amount of the non-complying or non-qualified expenses. - Consideration of the non-complying or non-qualified amount as taxable income and reporting it as such on the individual's W-2 or 1099 form. - Disciplinary action including possible termination of employment for any SUA employee violating or assisting in the violation of this policy Authorized/Approval Required This policy applies to reimbursement for or advance payment of travel and training expenses. All such SUA disbursements are subject to budget limitations, purchasing and all other pertinent SUA policies, procedures, and practices, and prior approval of the Executive Director (for all travel exceeding one day in duration). Deadlines for Submission Reimbursement requests and supporting documentation must be submitted within one (1) week of the date the expense was incurred. The exception would be for minor expenses, mileage, etc., where once a month submission would be more practical. Travel Advances/Deposits/Airfare Expenses Advances may be granted for up to 100% of the expected cost of the meeting or trip, subject to the following restrictions. No travel or training cost except per diem meal, vehicle fuel expense, tolls and parking expense shall be advanced payable directly to the employee. Advances for hotel room deposits, airline ticket expenses, Page 2 of 5 registration fees and other travel and training expenses will be paid directly to the vendor/provider by the Authority. The participating employee shall submit an expense report with itemized receipts to the Finance Department within five working days of his/her return. Computation of Travel Time for Reimbursement For purposes of reimbursement and methods of calculating fractional days of travel, the following principles are prescribed: 1. The travel day shall be a calendar day for in-state and out-of-state travel. Overnight accommodations and the associated costs are subject to prior approval by a Division Director or the Executive Director and are generally permitted when it is not reasonable or practical for the employee to arrive or depart on the same day as the seminar, conference or Authority business. The travel day for short or day trips shall be from time of departure to time of return to the Authority Administrative offices. 2. Allowance for meals shall be based on the following schedule (excluding meals that are provided with conference registration): Breakfast - When travel begins before 6 a.m. and extends beyond 8 a.m. Lunch - When travel begins before 12 noon and extends beyond 2 p.m. Dinner - When travel begins before 6 p.m. and extends beyond 8 p.m., or when travel occurs during night time hours due to special assignments. Rates of Per Diem and Subsistence Allowance 1. Travel Requiring an Overnight Stay Travelers are allowed meals and lodging when traveling to a convention, conference or Authority business requiring an overnight stay. Per Diem is limited to travel that requires an overnight stay and shall otherwise be limited to the recommendation of the Executive Director. Reimbursement will be as follows: Per Diem Statutes based upon a quarter day (six hours or fraction thereof); paid receipts not required; or 2. Travel Not Requiring an Overnight Stay Travelers are allowed meals when traveling to a convention, conference or Authority business outside of the Authority's service area not requiring an overnight stay. The traveler shall be allowed the amounts for subsistence as per the Executive Directors current recommendation. If meals are included in the registration fee or if a colleague or other party pays for a meal, a meal allowance will not be reimbursed. Transportation 1. Transportation must be by a usually traveled or most direct route. (If a person travels by an indirect route, he or she shall pay the extra costs. Reimbursement for expenses shall be based only on charges that would have been incurred by taking a usually traveled or most direct route.) Page 3 of 5 2. Must be the most economical means, keeping in mind the following: (a) The nature of the business. (b) The most efficient and economical means of travel. (Considering time of travel, cost of transportation and per diem or subsistence required.) (c) The number of persons making the trip, and the amount of equipment or material to be transported. 3. Transportation by common carrier when traveling on official business and paid for personally by the traveler must be substantiated by a receipt. 4. (a) An Authority vehicle shall be used by a traveler on official Authority business, when one is available and the use is feasible. (b) Planes, trains, buses, etc., shall be used when feasible. Reservations for this type of travel shall be made by the traveler's SUA department. The carrier should send the invoice to the Authority. A purchase order must be issued before reservations are made. (c) Rental cars may be used by the traveler only if absolutely necessary, and more economical. Use of a rental car must be approved by the Executive Director before travel begins. (d) Privately owned vehicles may be used by travelers on official business, in lieu of Authority owned vehicles or common carrier, if authorized by the Executive Director. Whenever travel by a privately owned vehicle is authorized due to a shortage of available Authority vehicles, the traveler shall be entitled to a mileage allowance as provided for by Section 112.061, Florida Statutes. If personal travel is prior to Authority business, Authority business commences as if personal travel were not included. If personal travel is after the conclusion of Authority business, personal travel begins at the time the traveler would have been expected to depart. Overnight accommodations/associated costs shall be permitted if it is not reasonable or practical for the employee to arrive or depart on the same day(s) as the work related event. Employees utilizing privately owned vehicles must carry an automobile liability insurance policy with $100,000/$300,000/$100,000 or greater coverage. Reimbursement for expenditures related to the operation, maintenance and ownership of the vehicle shall not be allowed when privately owned vehicles are used on public business and reimbursement is made at the fixed mileage rate. All mileage must be shown from point of origin to point of destination. Vicinity mileage necessary in order to conduct official business is allowable, but must be shown as a separate item on this expense report. Documentation Required for Reimbursement Individuals will be reimbursed for mileage for use of personal vehicles on authorized SUA business. The rate of reimbursement shall be based upon the allowable reimbursement rate established by Section 112.061, Florida Statutes. Whenever possible, automobile travel shall be accomplished using SUA-owned vehicles. However, if the employee has justification and elects to use a privately owned automobile, prior approval must be received from the Executive Director. Additionally, if an employee chooses to fly when the destination is under 200 miles, prior approval must be received from the Executive Director. Page 4 of 5 Mileage reimbursement requests must be submitted at least monthly on an Expense Report Form and may be combined with other applicable expenses recorded on the form. Car Rental When, subject to prior approval of the Executive Director, a vehicle is rented by an individual traveling on SUA business, the individual renting the vehicle shall purchase, at SUA's expense, the vehicular insurance offered by the rental agency. Failure to do so will result in the individual's own insurance being considered primary in the event of an accident and place the individual renting the vehicle at personal financial risk. All provisions regarding documentation of expense apply to car rentals. Accommodations When approved out-of-town travel includes overnight lodging at the same hotel for two or more individuals, SUA shall reimburse the cost of one (1) room for every two male employees and one (1) room for every two female employees. It is the intent of this policy that two employees of the same sex or who are legally married share a room whenever possible. If a particular employee wishes a separate room, he/she will be responsible for bearing the entire cost of the extra room. In the event that accommodations for an odd number of employees of the same sex are required, the employee having the longest continuous tenure as an employee of Seacoast shall occupy the individual room, unless alternative arrangements are mutually agreed upon by those affected. Incidental Expenses The following incidental expenses of the traveler may be reimbursed when receipts are attached: (a) Reasonable taxi fare. (b) Ferry fares and tolls. (c) Parking fees. (d) Communication expense (must be documented as official business). (e) Convention, conference or training course registration fees not paid in advance. Miscellaneous Provisions and Regulations 1. Non-reimbursable expenses are those generated by activities and events, which do not serve a direct public purpose to the Authority. Such expenses include the following: Laundry/Dry Cleaning Entertainment/Alcoholic Beverages Room Service Parking/Moving Traffic Violations Movie Rentals Cribs, Irons, etc. Suites/Villas Donations Personal Phone Calls Meals for Spouse or Personal Travel Companion 2. When authorization is granted for air travel to individuals whose travel expenses will be financed with Authority funds, only tourist class tickets shall be allowed. Page 5 of 5 3. All employees must use the tax exempt status to avoid the room tax charge. Tax exempt certificates are available in the Finance Department. Purchases by the Authority are only exempt from Sales and Use Tax when the Authority's Certificate of Exemption is presented to the vendor and the payment is made directly by the Authority. For this reason, travel plans should be made well in advance and checks, payable directly to the vendor, should be requested. 4. Employees attending and/or traveling to non-mandatory classes/seminars during non-work hours (regular day off or before or after work hours) are not entitled to compensation. 5. Business entertainment expenses may be reimbursed at the discretion of the Executive Director. Page 1 of 1 ADMINISTRATIVE PROCEDURE SUBJECT: APPROVAL OF CONSTRUCTION AND ENGINEERING CHANGE ORDERS PROCEDURE NUMBER: AP/89-02 ORIGINATED DATE: SEPTEMBER 25, 1989 REVISED DATES: Introduction During the course of design or construction of a project, it is quite often necessary to revise the scope of work to either incorporate consideration for unforeseen circumstances, to facilitate construction, or to accommodate future growth and expansion. Customarily, such changes require payment of costs or charges in excess of contract amounts. Frequently such circumstances require immediate decisions and commitment by the Authority to avoid costly project delays. Since the Seacoast Utility Board meets infrequently and the opportunity for prompt response to the need for contract amendments is limited, a policy for effecting timely decisions is required. Policy Providing that sufficient funds have been appropriated in a Board-approved budget and are available to be spent, the Executive Director is authorized to execute change orders and amendments to construction and professional services agreements not to exceed, in the aggregate, a total of 1. 10% of the original contract amount or $100.000.00 for any individual construction contract, whichever is less. 2. 20% of the original contract amount or $10,000.00, for any individual professional services contract, whichever is less. When such approvals are granted by the Executive Director, he/she will advise the Authority Board prior to the subsequent regularly scheduled Board meeting. Page 1 of 1 ADMINISTRATIVE PROCEDURE SUBJECT: PROCEDURE FOR BILL INSERTS/MESSAGES PROCEDURE NUMBER: AP/89-05A ORIGINATED DATE: SEPTEMBER 25, 1989 REVISED DATES: 6/22/05 Introduction From time to time, outside organizations request that certain messages be communicated to Seacoast Utility Authority customers by means of bill inserts or messages printed on SUA utility bills. In order to control the messages and set standards for such communication on behalf of a governmental enterprise, a policy should be implemented. Policy The organization making the request for the communication must meet ALL of the following criteria: 1. The organization must be established and known. 2. The organization must benefit a need in our service area. 3. The organization must be non-profit. 4. The organization must be human-service oriented. 5. The message cannot be for purposes of directly soliciting money. 6. When space is available, all inserts must boldly state "THIS MESSAGE IS PROVIDED AT NO COST TO SEACOAST UTILITY AUTHORITY OR ITS CUSTOMERS" in plain view. The use of the bill message or the bill insert is provided free of charge and does not create any additional cost in preparing, mailing or handling the bill statement. All messages and/or bill inserts must receive the prior approval of SUA staff on behalf of the Authority Board. Specifications for structuring the message must be adhered to as shown in Exhibits A and B. Page 1 of 3 ADMINISTRATIVE PROCEDURE SUBJECT: ANNUAL BUDGETARY PROCESS PROCEDURE NUMBER: AP/89-06A ORIGINATED DATE: SEPTEMBER 25, 1989 REVISED DATES: 8/24/05 Introduction In accordance with Florida State Law and the Bond Trust Indenture, Seacoast Utility Authority is required to annually prepare and adopt on or prior to the beginning of each fiscal year (October 1st through September 30th), "a detailed budget of the estimated revenues and expenditures for the Utility System" to include debt service requirements on bonded indebtedness and capital improvements. Policy No later than April 30th of each year, the Director of Finance will distribute to each department a budget input form(s) for the next fiscal year which will contain, at a minimum, the previous year's budgeted expenditures (appropriations), the previous year's actual expenses, the current year's budgeted expenditures (appropriations), and the actual expenses for the period of October 1st through March 31st inclusive. No later than May 31st of each year, each department shall submit to the Finance Department Manager on the appropriate budget input form(s) the following: 1. An estimate of the departmental expenses by line item for the current year based upon the year-to-date actual through March 31st data. 2. The expenditure requests (appropriations) by line item for the next fiscal year. 3. The Capital Improvement AND Renewal and Replacement expenditure requests for the next fiscal year with detailed descriptions and applicable documentation. 4. Supplemental documentation supporting and/or explaining the reason or nature of the budget request for each line item should be attached. Between the period of April 30th and June 15th of each year, the Finance Department Manager shall do the following: 1. Estimate all revenues in detail by type for the current fiscal year based upon actual revenue recorded through March 31st. 2. Estimate all revenues in detail by type for the next fiscal year. Page 2 of 3 3. Estimate debt service requirements through the end of the current fiscal year AND for the next fiscal year based upon the current amortization schedule in effect at that time. 4. Estimate Capital Improvement AND Renewal and Replacement expenditures for the current as well as for the next five fiscal years. 5. Estimate budgetary "surplus” funds to be used or replenished in the next budgetary year. No later than June 15th of each year, the Finance Department Manager shall submit to the Executive Director in a prescribed format a compilation of departmental expenditure estimates and requests, with revenue estimates and an estimate of any preliminary budget surplus or shortfall. During the ensuing two (2) weeks, the Executive Director and Finance Department Manager shall meet with the appropriate department heads to resolve any funding issues or questions relating to budget requests. On or about July 15th, the Executive Director shall submit to the Authority Board the annual operating and capital budget requests by department, an estimate of annual revenues, debt service requirements, and a transmittal budget message outlining the major elements of the proposed budget. From July 15th through the month of August the Authority Board shall schedule such budget workshop meetings as necessary with the Executive Director, Finance Department Manager, and applicable department heads in order to receive additional data and provide input toward the final assembling of budget documents prior to the public hearing. A public hearing shall be scheduled in advance so that the Operating Budget for the next fiscal year is adopted preferably in August, but no later than September 30th of the current fiscal year. On or about December 1st of each year, the final version of the adopted budget shall be transmitted to the Bond Indenture Trustee and other regulatory agencies as may be required. Page 3 of 3 SUMMARY BUDGET CALENDAR AND SCHEDULE OF RESPONSIBILITY DATE FUNCTION REQUIRED RESPONSIBLE PARTY April 30th Distribute appropriate budget worksheet Finance Dept. Manager (input) forms to Departments May 31st Departments submit all budget forms with Department Heads supporting documentation to the Finance Department Manager April 30th Estimate all revenues in the prescribed Finance Dept. Manager to manner and determine bond debt service June 15th requirements for new fiscal year June 15th Submit revenue estimates and departmental Finance Dept. Manager budget requests to the Executive Director June 15th Meet with Department Managers on budget Executive Director to requests to resolve questions or problems July 1st July 15th Submit draft annual operating and capital Executive Director budget with transmittal budget message to the Authority Board July 15th Budget workshop sessions with the Authority Executive Director to Board Aug. 31st Aug. Board Public Hearing and Adoption of the Annual Executive Director Meeting Operating and Capital Budget and (NO LATER THAN SEPTEMBER BOARD MEETING) Authority Board December 1 Submit Adopted Budget to Bond Indenture Finance Dept. Manager Trustee and other regulatory agencies Page 1 of 1 ADMINISTRATIVE PROCEDURE SUBJECT: ADVERTISEMENT AND AWARD FOR GOODS AND PROFESSIONAL SERVICES PROCEDURE NUMBER: AP/89-07A ORIGINATED DATE: OCTOBER 26, 1989 REVISED DATES: 6/28/06 The Executive Director shall be authorized to solicit bids for all goods and services pursuant to a capital improvements or operation and maintenance budget approved by the Authority Board Having received Board authorization, and absent any objections expressed by affirmative vote of the Board, specific authority for contract award is established as follows. The Executive Director shall be authorized to award such contracts and bids in the amounts not to exceed the Executive Director's purchasing limits as set forth elsewhere in this manual. With regard to agreements for professional services, limitations shall be as mandated by the Consultants Competitive Negotiations Act, as amended from time to time, or other applicable law. All other awards shall only be made after specific Board approval has been granted. The Executive Director shall be authorized to award such contracts and bids but shall be limited by the most stringent of the following: 1. Executive Director's purchasing limits as established by the Authority Board. 2. Consultants Competitive Negotiations Act. 3. Applicable rule, statute, or law. All other awards shall be made only after specific Board approval has been granted. Page 1 of 5 ADMINISTRATIVE PROCEDURE SUBJECT: SELECTION PROCESS FOR PROFESSIONAL SERVICES PROCEDURE NUMBER: AP/89-08G ORIGINATED DATE: NOVEMBER 1, 1989 REVISED DATES: 11/28/90, 3/24/93, 9/27/95, 4/21/99, 3/27/02, 12/18/02, 6/28/06 Introduction When it becomes necessary to acquire professional services such as architectural, engineering, surveying, and other services for which competitive bidding is either prohibited or ill-suited, the following procedure is established by which such services may be acquired. In all cases, provisions of applicable law, including but not limited to, the Consultants Competitive Negotiations Act will apply. Procedure 1. Public Notification The Executive Director shall seek Board approval prior to issuing any Requests for Proposals (RFP). Upon receipt of Board authorization, the Executive Director shall advertise the RFP in a publication of general circulation in the area one time only. 2. Selection Committee The Authority Board shall appoint a Consultant Selection Committee (Committee) that will be charged with the responsibility of screening proposals and developing a recommendation to the Board. The Committee will be composed of one (1) professional, licensed, certified, or directly experienced in the discipline for which services are to be provided, one (1) Board Member, and the Executive Director or his designee. The professional shall be nominated by the Executive Director and confirmed by the Authority Board. The Authority Board representative shall serve as Chairman of the Committee. 3. Review Process a. Staff Review All proposals received by SUA shall be referred to staff for evaluation of, including, but not limited to, responsiveness to the published RFP, professional capabilities, adequacy of personnel, past record, experience, and such other factors as may be determined relevant by staff. Results of staff evaluation shall be available for Committee review. Page 2 of 5 b. Committee Review The Committee shall select no fewer than three firms (unless fewer than three firms express interest) deemed to be the most highly qualified to provide the required services. In determining whether a firm is qualified, such factors shall be considered as the ability of professional personnel: past performance; willingness and ability to meet time and budget requirements; location; recent, current and projected workloads of the firm; and the volume of work previously awarded to each firm by SUA, with the objective of effecting an equitable distribution of contracts among qualified firms, provided such distribution does not violate the principle of selection of the most highly qualified firms. Based on documentation provided with each firm’s RFP response, each Committee member shall score each proposal using the scoring system indicated on Exhibit “A” to this Administrative Procedure (The committee may use modified scoring criteria where it deems appropriate). Short listing of firms shall be based solely on Exhibit "A" Short List Qualification Criteria. The short list shall include the three firms receiving the highest point total. The Committee may add firms to the short list provided at least two members agree. SUA staff shall contact short listed firms establishing a date, time and location for oral presentations. Following these presentations, each Committee member shall score the short listed firms in accordance with the Exhibit "B" Short List Ranking criteria. The sum of each Committee member’s Exhibit “B” scores shall be tallied and a ranking of preferred firms prepared using the following criteria. First priority shall be given to any firm receiving the highest point total from any two Committee members. If no firm qualifies under this provision, or if more than one firm is scored highest by two members (tie), then priority ranking shall be assigned in descending order of aggregate Committee point totals. If this process fails to yield a top ranking for one firm, the Committee shall cast lots for the firms remaining or otherwise reach a consensus. If no consensus can be reached, the Authority Board Member representative shall designate the top ranked firm. The Committee shall present its recommendations to the Authority Board at its next scheduled meeting. The Authority Board shall review and consider all factors set forth above, and shall select, in order of preference, no fewer than three firms (unless fewer than three firms express interest) deemed to be the most highly qualified to perform the required services. The Board may accept or reject, in whole or in part, the Committee's recommendation. The Authority Board or its designee shall negotiate a contract with the firm it deems most qualified, at compensation which the Authority Board determines is fair, competitive and reasonable. In making such determination, the Authority Board shall conduct, with staff assistance and recommendation, a detailed analysis of the cost of the professional services required, in addition to considering their scope and complexity. The Authority Board shall require the firm receiving the award to execute a truth-in-negotiation certificate stating that wage rates and other factual unit costs supporting the compensation are accurate, complete and current at the time of contracting. Any contract shall contain a provision that the original contract price and any additions thereto shall be adjusted to exclude any significant sums by which the Authority Board determines the contract price was increased due to inaccurate, incomplete or non-current wage rates and other factual unit costs. All such contract adjustments shall be made within one year following the end of the contract period. Page 3 of 5 Should the Authority Board be unable to negotiate a satisfactory contract with the firm considered to be the most qualified at a price and with terms that the Authority Board determines to be fair, competitive and reasonable, negotiations with that firm shall be terminated. The Authority Board or its designee shall then undertake negotiations with the second most qualified firm. Failing accord with the second most qualified firm, the Authority shall terminate negotiations. The Authority shall then undertake negotiations with the third most qualified firm. Should the Authority be unable to negotiate a satisfactory contract with any of these selected firms, the Authority shall select additional firms in the order of their competence and qualifications and continue negotiations in accordance with the above until an agreement is reached. Page 4 of 5 Page 5 of 5 Page 1 of 2 ADMINISTRATIVE PROCEDURE SUBJECT: BUDGET ADJUSTMENTS PROCEDURE NUMBER: AP/89-09B ORIGINATED DATE: OCTOBER 1, 1989 REVISED DATES: 9/24/03, 08/24/05 Introduction In the course of doing business as a Public Budgeting Entity it may be necessary to amend the Annual Operating and Capital Budget in order to reconcile and adjust original budget estimates/appropriations with actual events. The following procedure will set forth the steps and necessary levels of approval for making changes to the Annual Operating and Capital Budget. It shall be the responsibility of each Department Manager to monitor his (her) departmental financial activity report each month to ensure that actual operating and capital expenditures are within the boundaries set by the Annual Operating and Capital Budget. Capital Projects Budget Adjustment Policy: 1. When it is determined that a capital project has or will incur an expense, encumbrance, or liability that exceeds the budget, the Department Manager shall be required to complete a Budget Adjustment Form (Exhibit A) as follows: a. Identify the Department for which the budget transfer action is requested and the date of the request. b. List the Account Title(s), Account Number(s), and Amount(s) from which the budget transfer(s) should be made. c. List the Account Title(s), Account Number(s) and Amount(s) to which the budget transfer(s) should be made. These should be the accounts in which you intend to correct the budget deficiency. d. The budget transfers between accounts (TO and FROM Sections) should always balance (equal each other). e. Provide an explanation or reason for the requested budget transfer action. f. Submit the completed form to the Finance Department Manager. 2. The Finance Department Manager or his (her) designee shall review each budget adjustment request to ensure the requested action is appropriate (i.e., is the request reasonable? Are budgeted amounts available for transfer among the accounts listed? Are the account numbers correct?). Once satisfied, the Finance Department Manager shall sign, date, and submit the form to the Executive Director for his approval. Page 2 of 2 3. Once approved by the Executive Director, the Budget Adjustment Form shall be sent to the Finance Department for action. The Finance Department shall assign a "Budget Adjustment #" to the form and make an entry to the appropriate budget column in the general ledger. 4. The original copy of the Budget Adjustment Form shall be retained by the Finance Department to document the change. 5. The Executive Director shall have the authority to approve all budget transfers between capital line items (accounts) up to $25,000.00, subject to the provisions of AP/89-02, regardless of department. Budget transfers for capital projects in excess of $25,000.00 shall require the approval of the Authority Board. Operating and Personal Services Policy The Capital Projects Budget Adjustment Policy applies to budget adjustments for operating and personal services accounts with the following exceptions: Authority Board approval is not required for: 1. Intra-departmental budget adjustments between operating expense line items for any amount. 2. Intra-departmental budget adjustments between personal services expense line items for any amount. Page 1 of 9 ADMINISTRATIVE PROCEDURE SUBJECT: EASEMENT ABANDONMENT PROCEDURE PROCEDURE NUMBER: AP/90-10B ORIGINATED DATE: JANUARY 1, 1990 REVISED DATES: 4/24/91, 6/28/06 From time to time, certain individuals or corporations request that the Seacoast Utility Authority abandon portions of easements or allow encroachments on same. These include platted utility easements or easements granted by instrument. The following procedure will set forth the steps and necessary levels of approval for accommodating these requests. PROCEDURES 1. All inquiries concerning easement encroachments/abandonments by Seacoast Utility Authority shall be forwarded to the Engineering Technician. 2. The Engineering Technician shall explain requirements of the Seacoast Utility Authority and forward a "Requirements for Easement Encroachment/ Abandonment Checklist" along with necessary forms to the Applicant. 3. Applicant shall remit a properly completed request, meeting all the requirements outlined in the checklist. 4. The Engineering Technician shall evaluate request and obtain recommendation from the Executive Director whether the easement is now or in the future may be required by the Authority. If the request concerns an easement that the Authority is not utilizing and has no plans to use in the future, the Engineering Technician shall prepare a Letter of No Objection as appropriate. Should the easement be currently utilized or if there are plans to do so, the applicant will be required to execute the Authority's standard Encroachment Agreement. The latter encroachments will be permitted only where their installation will not unreasonably interfere with the Authority's activities (non critical installation). In the event the request affects a critical installation, the Engineering Technician shall send the Applicant a letter explaining the denial. 5. The Executive Director shall be authorized to execute Encroachment Agreement and Letters of No Objection on behalf of the Authority. Granting and abandonment of easements will require Authority Board approval. 6. If the Applicant requests abandonment of an easement and Seacoast Utility Authority’s staff concurs, the Engineering Technician shall complete the evaluation and prepare the staff recommendations to be placed on the agenda for the next scheduled Authority Board meeting for consideration. 7. If the Authority Board approves the requested abandonment, the proper authorized representatives of the Authority shall execute such documents as are required. If the Authority Board rejects the requested abandonment, the Engineering Technician will so notify Applicant by letter. Page 2 of 9 SEACOAST UTILITY AUTHORITY REQUIREMENTS FOR ENCROACHMENT/ABANDONMENT OF EASEMENT A. Submit a certified legal survey of the entire parcel of property within whose boundaries the easement is located, prepared by a Florida registered land surveyor showing: 1. Current property owners name and address. 2. The boundaries of the property. 3. Location and types of easement (i.e. utility, drainage, etc.). 4. Location of aboveground utility lines and equipment. 5. Location of ditches and/or drainage structures. 6. Location of fences, buildings, decks, sheds or other existing improvements. 7. Existing encroachments must be clearly shown on the survey, indicating the exact distance the improvements extend into the easement. B. Provide a description of the improvements to be constructed (or existing), including type of material, footers, a total height and function or purpose. Show proposed distance of encroachment into easement on a sketch. Legal description of the portion of the easement to be abandoned must also be provided. ONLY THIS PORTION OF THE EASEMENT MAY BE ABANDONED BY THE AUTHORITY. C. In the event the requested easement to be abandoned is not a platted easement, applicant shall prepare and forward to the Authority a properly completed quit claim deed including correct legal description and sketch of the portion of the easement to be abandoned in form and content satisfactory to the Authority for execution by the Authority in the event of approval of the abandonment request. In the event of approval and execution of the quit claim deed, applicant shall be responsible for proper recording of said quit claim deed. Page 3 of 9 (DATE) RE: Letter of No Objection Dear This letter will confirm that the Seacoast Utility Authority has no objection to the proposed abandonment of the public utility easement as set forth on your petition filed , 20 , with the Authority. Said easement is more fully described as follows: Should you have any questions, please feel free to contact the Engineering Technician at (561) 627-2900 extension 319. Sincerely, SEACOAST UTILITY AUTHORITY Rim Bishop Executive Director Page 4 of 9 Return To: TERMINATION OF EASEMENT THIS TERMINATION OF EASEMENT, executed this day of , 20 , by SEACOAST UTILITY AUTHORITY (hereinafter referred to as Grantor), whose address is 4200 Hood Road, Palm Beach Gardens, Florida 33410, to , hereinafter referred to as Grantee), whose address is : WITNESSETH, that the said Grantor, for and in consideration of the sum of $10.00, in hand paid by the said Grantee, the receipt whereof is hereby acknowledged, does hereby terminate the following described easement: , Public Records of Palm Beach County, Florida IN WITNESS WHEREOF, the said Grantor has signed and sealed these presents the day and year first above written. WITNESSES: GRANTOR: Signed, sealed and delivered SEACOAST UTILITY AUTHORITY in the presence of: By: Witness Signature , Chair Print Name Attest: , Clerk Witness Signature Print Name (SEAL) STATE OF FLORIDA ) COUNTY OF PALM BEACH ) The foregoing instrument was acknowledged before me this day of , 20 by and , Chair and Clerk respectively of Seacoast Utility Authority, who are both personally known to me and who did not take an oath. Notary Signature Print Name Notary Public - State of Florida Commission No. My Commission Expires: Page 5 of 9 Please Return To: PARTIAL RELEASE OF EASEMENT THIS PARTIAL RELEASE OF EASEMENT, executed this day of , 20 by SEACOAST UTILITY AUTHORITY, (hereinafter referred to as Grantor), whose address is 4200 Hood Road, Palm Beach Gardens, Florida 33410, to , whose address is (hereinafter referred to as Grantee): WITNESSETH, that the said Grantor, for and in consideration of the sum of $10.00, in hand paid by the said Grantee, the receipt whereof is hereby acknowledged, will hereby remise, release and quit-claim unto Grantee as to each of their respective properties as set forth above forever, all the right, title, interest, claim and demand which the said Grantor has in and to a portion of an easement, to wit: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF TO HAVE AND TO HOLD the same, together with all and singular the appurtenances there unto belonging or in anywise appertaining, and all the estate, right, title, interest, lien, equity and claim whatsoever of the said Grantor, either in law or equity, to the only proper use, benefit and behoove of the said Grantee forever. IN WITNESS WHEREOF, Grantor has signed and sealed these presents the day and year first above written. WITNESSES: GRANTOR: Signed, sealed and delivered SEACOAST UTILITY AUTHORITY in the presence of: By: Witness Signature , Chair Print Name Attest: , Clerk Witness Signature Print Name (SEAL) Page 6 of 9 STATE OF FLORIDA COUNTY OF PALM BEACH The foregoing instrument was acknowledged before me this day of , 20 by and , Chair and Clerk respectively of Seacoast Utility Authority, who are both personally known to me and who did not take an oath. Notary Signature Print Name Notary Public - State of Florida Commission No. My Commission Expires: Page 7 of 9 Please Return to: Bruce Gregg SEACOAST UTILITY AUTHORITY 4200 HOOD ROAD PALM BEACH GARDENS, Fl 33410 ENCROACHMENT AGREEMENT THIS AGREEMENT made and entered into this day of , 20____, by and between (hereinafter referred to as "Owner") whose address is and SEACOAST UTILITY AUTHORITY (hereinafter referred to as "Authority") whose address is 4200 Hood Road, Palm Beach Gardens, Florida 33410. W I T N E S S E T H: WHEREAS, Owner holds title to a certain parcel of real estate more particularly described as: , public records of Palm Beach County, Florida (hereinafter referred to as the "Property"); and WHEREAS, the Property is encumbered by a certain utility easement (hereinafter referred to as the "Easement"), such Easement being for the benefit of Authority; and other utilities; and WHEREAS, Owner desires to within a portion of the Easement (hereinafter referred to as "Encroachment"). NOW, THEREFORE, for and in consideration of the covenants set forth herein, Owner hereby agrees as follows: 1. The foregoing recitals are true and correct and are incorporated herein by reference. 2. Authority hereby consents to the installation by Owner of the Encroachment within the Easement, subject to the terms herein. 3. In consideration of Authority's consent to the installation of the Encroachment within the Easement, Owner hereby agrees that in the event that Authority determines that it is necessary to construct, maintain, repair, remove or replace any facilities of Authority located or to be located within the Easement, and such work requires the removal or relocation of the Encroachment in whole or in part, such removal and replacement may be done by Authority or its agents or subcontractors at the sole cost and expense of the Owner. 4. Owner hereby acknowledges that the Encroachment will hinder Authority’s access to the Easement and the Authority’s facilities located therein and Owner hereby grants Authority alternate access across the Property as may be reasonably necessary or convenient for the Authority to construct, maintain, repair, remove or replace such facilities. 5. This Agreement shall be binding upon the Owner, its heirs, successors, legal representatives and assigns. This Agreement will run with the title to the Property and will forever benefit Authority and bind the Owner and all future owners of the Property, including, without limitation, their heirs, successors, legal representatives and assigns. Page 8 of 9 6. Owner for itself and on behalf of all future owners of the Property, hereby agrees to indemnify and hold Authority harmless from and against any and all liabilities, damages, claims, costs and expenses, including attorneys' fees, which may be imposed upon or asserted against Authority arising from or in any way connected with the installation of the Encroachment within the Easement. IN WITNESS WHEREOF, the Owner has executed this Agreement as of the date first above written. WITNESS: OWNER: Signed, sealed and delivered in the presence of: Witness Signature as to both Signature Print Name Print Name Witness Signature as to both Signature Print Name Print Name STATE OF FLORIDA COUNTY OF PALM BEACH The foregoing instrument was acknowledged before me this ____ day of ________________, 20____, by who are personally known to me or who has produced as identification and who have not taken an oath. Notary Signature Print Name Notary Public - State of Florida Commission No. My Commission Expires: Page 9 of 9 WITNESS: SEACOAST UTILITY AUTHORITY: Signed, sealed and delivered in the presence of: By: Witness Signature Rim Bishop, Executive Director Print Name Attest: Mary Ann Stiles, CMC, Authority Clerk Witness Signature Print Name STATE OF FLORIDA COUNTY OF PALM BEACH The foregoing instrument was acknowledged before me this ____ day of ______________, 20____, by Rim Bishop and Mary Ann Stiles, Executive Director and Authority Clerk respectively of Seacoast Utility Authority, who are both personally known to me and who did not take an oath. Notary Signature Print Name Notary Public - State of Florida Commission No. My Commission Expires: Page 1 of 1 ADMINISTRATIVE PROCEDURE SUBJECT: PUBLIC RECORDS PROCEDURE PROCEDURE NUMBER: AP/90-11A ORIGINATED DATE: APRIL 25, 1990 REVISED DATES: 6/28/06 Introduction It is the policy of Seacoast Utility Authority to assist the public in gaining access to the Authority's records in an orderly fashion. Under Florida law, the public is entitled to inspect the records and documents of the Authority with reasonable notice. This policy sets forth the manner in which requests from the public shall be honored. Availability of Documents All written documents including but not limited to those in connection with the creation, financing or operation of the Authority are subject to this policy. Contact Person(s) All requests for documents shall be referred to the Executive Director for action and response. The Executive Director or his/her designee shall establish a time and set aside space on the Authority's property where the requested documents can be reviewed. Requests Requests for document reviewing or copying may be either written or verbal. The Executive Director or his/her designee shall respond to any request to produce documents within two (2) working days of receipt of such a request. Terms The party requesting copies of any document must: 1. Specifically identify which documents are to be copied. 2. Pay $.15 per copy sheet for any copy, regardless of sheet size except for full size engineering plans. Such plan sheets will be provided at Authority cost. 3. Pay the cost of any outside services required. 4. Pick up documents at Authority offices, remitting payment prior to doing so. Exceptions 1. Records stored on computer tape, floppy disk or hard disk storage will be provided only in the format in which they are available. 2. The Authority will not prepare reports other than those normally prepared in the normal course of operations. 3. Special computer programming to generate data in a particular format to meet a specific request shall not be performed. 4. The Authority shall honor such exclusions as provided by law. 5. It is the intent of this procedure to conform to the provisions of applicable law. Page 2 of 2 4. The Authority shall honor such exclusions as provided by law. 5. It is the intent of this procedure to conform to the provisions of applicable law. Page 1 of 6 ADMINISTRATIVE PROCEDURE SUBJECT: RETROACTIVE BACKFLOW PREVENTER INSTALLATION PROCEDURE PROCEDURE NUMBER: AP/90-12A ORIGINATED DATE: JUNE 27, 1990 REVISED DATES: 6/28/06 The purpose of this procedure is to outline the steps to be taken to ensure that water services which currently exist without the benefit of proper backflow preventers are corrected over a reasonable time period. New services are covered by the Authority's Construction Standards and Specifications and are administered during plan review and construction inspection. Existing services are classified in three ways: 1. Imminent threat of contamination of the Authority's water lines and services via a cross connection which poses a public health risk. These situations require immediate disconnection of the water service by distribution personnel. An Engineering Technician will provide necessary information to the property owner so that proper backflow preventer device installation or the physical disconnection of the cross connection is accomplished. Distribution personnel will verify proper operation of the backflow preventer or witness physical disconnection of the cross connection prior to water service being restored. 2. All existing general service customers (non-residential and master metered multifamily) making any change to their account with the Authority will be required to install an appropriate backflow prevention device. The Customer Service Representative handling requests for changes in name, new deposits, deposit refunds, etc. of these customers will check company files to see if a backflow preventer is in place. Customers with existing water services that do not have a proper backflow preventer will be so notified by the Customer Service Representative (if required, the customer will be referred to an Engineering Technician who will explain the requirements in further detail). Such customers will be required to sign the "Agreement to Install Backflow Preventer" (copy attached) in order to obtain temporary water service. These agreements will be forwarded to the Engineering Technician who will place same in the backflow preventer installation tickler file. The Engineering Technician will prepare a service order for distribution personnel to check the service to determine if the proper backflow preventer has been installed within thirty (30) days from the date of the agreement. If the device has not been installed or is installed incorrectly, the Engineering Technician will prepare and transmit a "fifteen day" (15) notice (copy attached) to the customer, and will place a copy of same in the tickler file. The Engineering Technician will prepare a service order for distribution personnel to check if the proper device has been installed fifteen days thence. If the device has been installed, distribution personnel will test the device; if the device has not been installed, distribution personnel will disconnect the water service. 3. Business or commercial practices which are documented to have a significant potential for cross connections. These will be identified by an Engineering Technician in conjunction with the observations of other utility personnel. The Page 2 of 6 Engineering Technician will send a "Requirement to Install a Backflow Preventer" Notice (copy attached) to the owner and will insert copy of same in the backflow preventer tickler file. The Engineering Technician will prepare a service order for distribution personnel to check the service to determine if a backflow preventer has been installed within forty-five days of the date of the notice. If the device has been installed, distribution personnel will test the device; if the device has not been installed the Engineering Technician will notify the Water Department Manager who will arrange a meeting with appropriate parties to determine the next course of action. The Engineering Technician will be informed of all future action so that the tickler file is maintained. Page 3 of 6 Account No. AGREEMENT TO INSTALL BACKFLOW PREVENTER APPLICATION FOR TEMPORARY WATER SERVICE FOR: ISSUE DATE: Applicant Name (Print or type) D.B.A. Business Name (Print or type) (Authorized Agent) Seacoast Utility Authority has a cross connection control program as mandated by Chapter 62- 555, Florida Administrative Code, Palm Beach County Environmental Control Rule No II and Seacoast Utility Authority’s Uniform Water and Sewer Service Policy as adopted by the Authority Board. All existing water services, non-residential and master metered, water services must have an approved backflow prevention device installed to provide protection from possible cross connections to the potable water distribution system. In compliance with the above stated regulations, the applicant hereby acknowledges receipt of the Seacoast Utility Authority Construction Standards and Specifications Drawing No. 36 which indicates the approved method of installation and list of approved backflow devices. Installation and testing of the backflow preventer is required prior to obtaining permanent water service. The applicant is responsible for installation and upon notice of completion, Seacoast will perform the required test. Upon successful testing, the applicant hereby transfers ownership of the backflow device to the Seacoast Utility Authority for subsequent maintenance and testing including legal access to the device over the applicant’s property to accomplish same. Any questions should be directed to the Engineering Technician at (561) 627-2900 extension 319. I hereby acknowledge that I am the Owner or I am authorized to act on behalf of the Owner of the property to be served and also acknowledge that the temporary water service will be disconnected without further notice if the required device is not installed in a satisfactory manner within forty-five days. By: Applicant Title Service Address: Mailing Address: Telephone: # 2 Telephone: Page 4 of 6 Fax: Email: FOR USE BY SEACOAST BACKFLOW DEVICE MAKE: MODEL NO: SIZE: SERIAL NO: LOC: METER NO: Page 5 of 6 NOTICE Date CERTIFIED MAIL RETURN RECEIPT REQUESTED Name Address Dear Sir: RE: Installation of Required Backflow Preventer Account # It was agreed on that the Seacoast Utility Authority would provide you with temporary water service if you installed a proper backflow preventer at the referenced site within forty five (45) days. Please refer to the enclosed copy of the Agreement. Our recent field inspection indicates that no backflow prevention device has been installed. To avoid disconnection of your temporary water service, which has been scheduled for , please install the required backflow prevention device prior to that date. Under the terms of our Agreement, no further notice will be provided prior to disconnection of your water service. Your cooperation concerning this matter is greatly appreciated. Should you have any questions, please do not hesitate to call. Sincerely, SEACOAST UTILITY AUTHORITY Attachments cc: Customer Service Florida Department of Environmental Protection Palm Beach County Health Department Page 6 of 6 NOTICE Date CERTIFIED MAIL RETURN RECEIPT REQUESTED Name Address Dear Sir: RE: Requirement to Install A Backflow Preventer We have recently reviewed our files in accordance with the Seacoast Utility Authority’s Cross Connection Control Program. It is our understanding that you are operating a without the benefit of an approved backflow preventer on your water service. This is in violation of our program which is mandated by Palm Beach County Environmental Control Rule No. II and Florida Administrative Code Chapter 62- 555. You are required to install an approved backflow preventer as soon as reasonably possible in order to comply with these regulations. Please contact me upon your earliest convenience at (561) 627-2900 extension 319 for details on the exact requirements to comply with the law. Sincerely, SEACOAST UTILITY AUTHORITY Engineering Technician Attachments cc: Customer Service Florida Department of Environmental Protection Palm Beach County Health Department Page 1 of 2 ADMINISTRATIVE PROCEDURE SUBJECT: ATTENDANCE AND PUNCTUALITY STANDARDS PROCEDURE NUMBER: AP/90-13B ORIGINATED DATE: JUNE 27, 1990 REVISED DATES: 9/19/01, 6/28/06 1. To assure the smooth and efficient operations of our facilities, the Authority expects prompt and perfect (or near-perfect) attendance and punctuality from each of its employees. Authority guidelines state that an employee should not be absent or tardy as defined herein more than five (5) times each within an "employee year" to attain a satisfactory rating in dependability. Perfect attendance and punctuality, however, are the most desirable goals. For the purpose of applying this procedure an "employee year" shall be defined as the period of time between annual performance evaluations. 2. Absence is defined as an employee's failure to report to his/her supervisor within 15 minutes before the appointed starting time, or after recess for a coffee or lunch/dinner break. Any employee missing four or more hours in a work day will be considered as having one absence for purposes of employee performance appraisals. (Similarly, an absence of two or more consecutive missed days due to one injury or illness will be counted as one absence. Each Personal day will be considered as a single absence whether it is consecutive or non-consecutive.) 3. Tardiness is defined as an employee's failures to report to his/her work station at the appointed starting time for his/her shift or after recess for a coffee or lunch/dinner break. An hourly employee's pay will be docked if he/she is tardy a total of 15 minutes or more in a week. With the supervisor's approval, an employee may be considered not to be tardy if the employee contacts or leaves word for the supervisor at least 15 minutes before the appointed starting time and the missed time is made up. 4. All supervisors are responsible for communicating these attendance requirements clearly to new employees on their first day with the Authority. Each supervisor is required to maintain current attendance sheets for each employee under his/her supervision. This attendance card will be utilized when completing the attendance portion of the employee's performance appraisal. The supervisor will use the last twelve completed months prior to the date of the appraisal as the evaluation period. The supervisors are also responsible for keeping track of sick time used for family illness (ten (10) days each "employee year"). 5. Doctor/Professional appointments may be scheduled during the normal work day if it proves impossible to schedule such appointments outside working hours. Employees shall account for this time by: a. Taking sick leave if available b. Taking vacation leave if available c. Taking unpaid Personal leave (unavailable until all vacation leave is used). d. Arranging for compensatory time with the supervisor. Page 2 of 2 Whichever option the employee chooses, scheduling must be made with approval of the supervisor. It shall be the responsibility of the employee to return to work as soon as possible following the appointment. The employee should be aware that his/her performance evaluation will be affected by his/her dependability/attendance. 6. It is the employee's responsibility to notify his/her supervisor within 15 minutes before the appointed starting time if off work due to illness or family emergencies, etc. The supervisor must be made aware of each day the employee will be unable to report to work, and a medical excuse may be requested when three (3) or more consecutive days of work are missed. An employee wishing to return to work after an absence in excess of five (5) consecutive days must present a release to work from his/her doctor. This is necessary to protect the health of the employee and his/her fellow workers. 7. An employee who does not provide a proper notice of his/her inability to come to work on any given day to their supervisor will be considered on unauthorized leave. Unauthorized leave is a serious violation of company policy which will result in disciplinary action. Page 1 of 6 ADMINISTRATIVE PROCEDURE SUBJECT: INVESTMENT POLICY PROCEDURE NUMBER: AP/90-14D ORIGINATED DATE: OCTOBER 24, 1990 REVISED DATES: 10/25/95, 5/23/01, 2/27/02, 6/28/06 I. SCOPE The authority to invest and deposit Seacoast Utility Authority funds is delegated to the Finance Department. Investment of Authority funds is subject to the general supervision of the Authority Board by means of investment policies and a Board appointed Review Committee. This policy sets forth the direction of the Authority Board with regard to establishing an effective cash management program. The investment policy applies to all financial assets of the Authority except for funds governed by trust agreements. The Authority's portfolio shall be designed and managed in a manner responsive to the public trust and consistent with Federal, State, and other legal requirements. II. OBJECTIVES The Authority's Investment Objectives, in priority order, are: a. Preservation of capital and the protection of investment principal. b. Maintenance of sufficient liquidity to meet operating (including debt) requirements. c. Attainment of a market rate of return throughout budgetary and economic cycles, taking into consideration the Authority's investment risk constraints, cash flow considerations, and state laws that restrict the placement of public funds. d. Diversification to avoid incurring unreasonable risks regarding specific security types or individual financial institutions. III. DELEGATION OF AUTHORITY The Finance Manager is designated as the investment officer of the Authority and is responsible for investment decisions and activities within the limits of the Authority's Investment Policy and Review Committee. The day to day administration of the cash management program is handled by the Senior Accountant. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures so established. Positions authorized as investment signatories are Executive Director, Finance Manager and Senior Accountant. The persons holding these positions are also authorized to initiate internet and wire transfers for the Authority. All Authority checks shall require two (2) signatures, one of which must be an Authority Board member. In addition, the Executive Director or the Finance Manager may act as a signatory on a bank check provided Page 2 of 6 that a Board member cosigns. Facsimile signatures are authorized up to $10,000 per check. Above $10,000.00, signatures must be hand written. Bonding of all staff with signatory authority is required. Bonding levels will be reviewed annually with the external auditors and the applicable insurance agent of record. IV. PRUDENCE The standard of prudence to be used by the investment officer in the context of managing the overall portfolio shall be the prudent investor rule, which states, "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived". The investment officer and staff, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for a specific security's credit risk or market price changes, provided that these deviations are reported as soon as practical and that appropriate action is taken to control adverse developments. V. MONITORING, ADJUSTING, AND REPORTING THE PORTFOLIO The investment officer will routinely monitor the contents of the portfolio, the available markets and the relative values of competing instruments and will adjust the portfolio accordingly. An annual report shall be prepared by the Finance Manager and submitted to the Authority Board detailing the Authority's securities by type, book value, market value, and income earned as of the date of the report. VI. INTERNAL CONTROLS The Authority will maintain the following internal controls designed to protect the Authority's investment assets and ensure proper accounting and reporting of the transactions related thereto. Such controls and procedures shall be reviewed by the independent auditors as part of the annual financial audit. a. Trust Receipt Documentation - The Authority is authorized to accept, on the behalf of and in the name of the Authority, bank trust receipts or safekeeping confirmations in return for investment of temporarily idle funds as evidence of actual delivery of the obligations or securities. Any such trust receipt or confirmation should fully describe the various obligations or securities held, together with the specific identification number of each obligation or security held, and that they are held for the Authority. Transactions between a custodian and a broker-dealer involving the sale or purchase of securities by transfer of money/security shall be made on a "delivery vs. payment" basis. The actual obligations or securities, whether in book-entry or physical form, on which trust receipts or confirmations are issued may be held by a third party custodial bank and/or institution or a designated corresponding bank or custodian institution which has a correspondent relationship to the Authority's third party custodian or its designated correspondent institution, who is acting on behalf of, and under the same obligations as, the Authority's third party custodian. Securities held by a third party, and all securities purchased by, and all collateral obtained by, Seacoast Utility Authority shall be properly designated as assets of the Seacoast Utility Authority. No withdrawal of securities, in whole or in part, shall be made from safekeeping, except by an authorized staff member of the Seacoast Utility Authority. b. Transaction Authority Controls - All transactions, including the movement of cash or cash equivalents and the deposit into or the withdrawal from safekeeping of securities, shall be subject to the following limitations: Page 3 of 6 1. To prevent transfers of funds to unauthorized accounts, all movement of cash, including the proceeds from sales or maturation of securities, shall be restricted to wire transfer to and from specific and pre-designated accounts at institutions selected by and approved by Authority Board Resolution. 2. All movements of cash, cash equivalents, and securities under safekeeping arrangements shall be accomplished by telephonic or written instructions. 3. All transactions, regardless of amount and including cash, cash equivalents, buy/sell, safekeeping deposit and safekeeping withdrawal activities, shall be confirmed by written advice issued by the servicing firm or agent. All written confirmations shall be directed to the Finance Manager for transactions under $500,000.00 and to the Executive Director for all transactions $500,000.00 and above. All transactions, the amount of which equal or exceed $500,000.00, and which include cash, cash equivalents, buy/ sell, safekeeping deposit and safekeeping withdrawal activities, shall be reconfirmed by "call-back" by the servicing firm or agent. All telephonic reconfirmations shall be directed to someone other than the originator of the transaction. VII. QUALIFIED INVESTMENTS, DIVERSIFICATION, AND MATURITY a. The Authority will diversify the portfolio to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual financial institutions, or maturities. With the exception of United States Treasury Securities and the Local Government Surplus Funds Trust Fund, no more than 50% of the Seacoast Utility Authority's total investment portfolio will be invested in a single security type or with a single financial institution. Without specific Board approval, Seacoast Utility Authority will not invest any funds in derivative investment products, nor shall Seacoast Utility Authority use reverse repurchase agreements or other forms of leverage. If the Authority Board approves investments in derivative investment products, then the authority’s officials for making investment decisions or its chief financial officer will have sufficient understanding of the derivative products and have the experience to manage them. If the Authority’s Board approves investment in reverse repurchase agreements or other forms of leverage, then the Authority shall limit the investments to transactions in which the proceeds are intended to provide liquidity and for which the Authority has sufficient resources and expertise. b. Eligible Securities - The Authority may invest temporarily idle funds in the following types of instruments: 1. Negotiable direct obligations of, or obligations the principal and interest of which are unconditionally guaranteed by, and which carry the full faith and credit of, the United States Government at the then prevailing market price for such securities; 2. Short-term obligations of United States Government agencies, for example, Government National Mortgage Association (GNMA), Small Business Administration (SBA), Federal Housing Administration (FHA), Farmers' Home Administration (FMHA), General Services Administration (GSA); 3. Short-term obligations of United States Government instrumentalities, for example, Federal Home Loan Mortgage Corporation (Freddie-Mac), Federal Home Loan Bank or its district banks (FHLB), Federal National Mortgage Association (FNMA), Federal Farm Credit Banks (FFCB). Page 4 of 6 4. Certificates of Deposit at commercial banks and thrifts (savings and loan associations) doing business and situated in this State and approved by the State Treasurer for public deposits; 5. Repurchase Agreements consisting of United States Treasury securities, marked to market, with an agreement by the seller to repurchase the securities back on a specific date at the stated rate of interest, and covered under a master repurchase agreement through authorized Florida banks, thrifts or primary dealers of government securities reporting daily to the New York Federal Reserve Bank. All institutions and dealers transacting repurchase agreements must execute and perform as stated in the master repurchase agreement and all repurchase agreement transactions shall adhere to the requirements of the master repurchase agreement. Investment officers shall not conduct business with any securities dealer with whom, or through whom, public or private entities have sustained losses on the principal portion of their investments as certified by dealer, broker or banking institution. 6. State of Florida, State Board of Administration, Local Government Surplus Funds Trust Fund; 7. Bankers' Acceptances which are domestic only and inventory based. Bankers' Acceptances must be eligible to qualify for use as collateral at the Federal Reserve Bank; 8. Commercial paper rates A1/P1 or equivalent by nationally recognized rating agencies, such as Moody's Investor Services, Inc., or Standard & Poors Corporation; 9. Interest bearing time deposits or savings accounts in banks and thrifts approved by the State Treasurer for public funds and collateralized accordingly; 10. Securities of, or other interests in, any open-end management-type investment company or investment trust registered under the Investment Company Act of 1940, 1S U.S.C. 55.80a-1, et. seq., as amended from time to time, provided the portfolio of such investment company or trust is limited to money market instruments consisting of United States Government obligations and to repurchase agreements fully collateralized by such United States Government obligations and provided such investment company or trust takes delivery of such collateral either directly or through an authorized custodian. c. Investment Maturity - Maturity limitations shall depend upon whether the funds being invested are considered short term or long term funds. All funds shall be considered short term except those reserved for capital projects (i.e., bond sale proceeds). Except for special situations, as directed by the Finance Manager, investments shall be limited to instruments maturing within three (3) years of purchase. Under no circumstances shall the average life of the investment, as calculated by the Public Securities Association Standard Prepayment Model (PSA), exceed ten (10 years). To the extent possible, the investment officer of the Authority shall seek to match investment maturities with known cash needs and anticipated cash-flow requirements. d. Qualifications of Brokers, Dealers and Financial Institutions Before accepting funds or engaging in investment transactions with the Authority, the supervisory officer at each depository and recognized securities broker/dealer shall submit a certification evidencing that he/she has reviewed the investment policy and objectives, and states that there exists no potential conflicts, financial interests, marital or family interests Page 5 of 6 between the Authority's investment officers and the firm/depository and employees offering securities or investments to the Authority are trained in the precautions appropriate to public sector investments and are familiar with the Authority's investment objectives, policies and constraints, or other risks to public funds that might arise out of business transactions. This section is not intended to preclude investment officers from transacting personal business if such business transactions would be available to any other customer of the firm/depository at the same terms. The Authority shall only conduct business with authorized banks and thrifts (approved by the Florida State Treasurer as "Qualified Public Depositories") and primary securities dealers reporting directly to the New York Federal Reserve Bank or with secondary broker/dealers with principal offices situated in the State of Florida having equity of at least ten million dollars ($10,000,000.00). Securities brokers/dealers conducting financial investment transactions with the Authority shall meet a minimum capital adequacy requirement of 1.2 times (or 120% of) the brokers/ dealers calculated risks. The firm will submit independent certification by an outside auditor or similar agency that it complied with the capital adequacy standard on its most recent year-end balance sheet date. The certification should be provided to the Authority on an annual recurring basis. Specific depository institutions and brokers/dealers from whom the Authority is able to purchase securities shall first be approved by resolution of the Authority Board of Directors. e. After the Authority has analyzed and selected one or more optional types of investment, the security should be competitively bid (when feasible and appropriate). VIII. THIRD PARTY CUSTODIAN AGREEMENTS Securities shall be held with a third party; and all securities purchased by, and all collateral obtained by, the unit of local government shall be property designated as an asset of the unit of local government. No withdrawal of securities, in whole or in part, shall be made from safekeeping, except by an authorized staff member of the unit of local government. Securities transactions between a broker-dealer and the custodian involving purchase or sale of securities by transfer of money or securities must be made on a “deliver vs. payment” basis, if applicable, to ensure that the custodian will have the security or money, as appropriate, in hand at the conclusion of the transaction. IX. INVESTMENT REVIEW COMMITTEE An Investment Review Committee consisting of the Executive Director, a financial consultant (if needed), and the Finance Department Manager should meet 2-3 times annually to review the investment portfolio and provide direction for the Finance Department Manager in such matters as investment objectives, investment strategies, portfolio diversification and maturity structure, and to select authorized investment depositories, brokers and dealers subject to the qualifications outlined in VII(d) of this policy X. PERFORMANCE MEASURES As outlined in II above, the first priority of the Authority’s Investment Objectives is preservation of principal. This is to be accomplished through diversification of investments. Within safety and liquidity guidelines, the performance measure baseline to be used for the investment activities shall the yield/return generated by the Local Government Surplus Funds Trust Fund since this offers the highest liquidity of investment. XI. CONTINUING EDUCATION The Finance Department Manager, as investment officer of the Authority, shall complete 8 hours of continuing education annually in subjects or courses of study related to investment practices and Page 6 of 6 products. This training will be used to keep the Investment Policy of the Authority and related investing decisions in compliance with changes in statutory requirements and market related investment activities. Page 1 of 2 ADMINISTRATIVE PROCEDURE SUBJECT: EMPLOYEE DISABILITY (NON-WORK RELATED) PROCEDURE NUMBER: AP/90-15B ORIGINATED DATE: DECEMBER 19, 1990 REVISED DATES: 2/28/01, 6/22/05 Introduction Seacoast Utility Authority establishes this procedure to address employee disability arising from non-work related accidents, injuries, or illnesses. Applicability This procedure applies to all personnel employed by Seacoast Utility Authority as permanent employees at the time of the onset of the injury/illness. In order to be deemed disabled under this policy, the employee must present a letter signed by a medical doctor, licensed to practice in the State of Florida, setting forth the nature of the disability and that the employee is medically unable to perform his/her job functions. The physician must provide in this letter a prognosis for recovery. It shall be the responsibility of the disabled employee to notify his/her direct supervisor and to deliver the doctor's notice to the Authority's Personnel Specialist. Disability Period The effective beginning date of any employee's disability shall be the employees’ next normal work day following receipt fo the written doctor's notice to the Authority's Personnel Specialist. The employee shall be deemed by the Authority to be disabled under this policy until a release for work, issued by the attending physician, is delivered to the Personnel Specialist. When an employee has expended FMLA (See AP/95-25), and becomes eligible for long term disability benefits under the Authority’s current Long Term Disability insurance policy, he/she may be considered permanently separated from the employ of the Authority, thereby ending the Disability Period. At that time, a permanent replacement may be hired if deemed necessary by the Executive Director. Alternatively, at the discretion of the Executive Director, the position may be held open and filled by the employee upon a release of duty by the disabled employee’s attending physician. Payroll and Benefits During the Disability Period, Authority benefits and programs shall be handled as follows: 1. The disabled employee shall receive 40 hours per week of normal compensation for accrued sick and vacation leave until all such leave is exhausted therefore the disabled employee shall receive no further compensation from the Authority. 2. Sick and vacation leave shall continue to accrue until the employee's accrued sick plus vacation balance drops to zero (0) hours. At that time, accruals will cease and will not be resumed until the employee returns to work full time. Page 2 of 2 3. Bereavement leave entitlement shall be suspended. 4. Education and training benefits will continue, but only for course(s) in which the disabled employee was enrolled at the time of the onset of the illness/injury, and only if that course was specifically funded under the Authority's Tuition Reimbursement Program. 5. Holiday pay will be suspended after all sick /vacation pay have been expended. 6. Deferred Compensation and/or pension contributions, if any, will continue only as long as the employee receives sick/vacation pay. 7. Participation in the Authority's cafeteria plan will continue only as long as the employee receives sick/vacation pay and until FMLA has been exhausted (See AP95-25). 8. Payroll deduction for the credit union(s), United Way, Employees' Club and other programs will continue unchanged as long as the employee receives sick/vacation pay. Should the employee wish to make a change in any of these programs, he/she shall be responsible to make the necessary arrangements with the Finance Department. 9. No salary increase, whether cost of living or merit, shall be granted to any employee until the employee is released by the attending physician and returns to full time duty. Performance evaluations shall be withheld until that time. 10. Group Health Insurance a. Authority funded coverage for the employee shall continue during the Period of disability and/or FMLA (See AP/95-25). b. If, before the onset of the injury/illness, the employee had elected dependent coverage, it shall continue as long as the employee receives sick/vacation pay. During FMLA, the premium share paid respectively by the Authority and the employee shall be the same as that which is available to all other full time employees of the Authority. When group health insurance benefits expire under 10.a. or 10.b. above, the employee may elect to continue coverage by paying the cost of his/her premium, on a monthly basis, for the balance of the Disability Period. During the period of disability, the disabled employee shall remain in the employ of the Authority subject to the provisions of FMLA, (See AP/95-25). The Executive Director may, within the constraints of the approved budget, hire temporary labor to assist in dealing with the disabled employee's workload. Death Benefit Upon the death of any eligible employee, the Authority shall pay to the employee's designated beneficiary, the employee’s accrued salary to date of death, and the full value of the employee's accrued vacation leave and sick leave according to the Sick Leave Conversion Pay policy (AP/96-31). This shall be calculated as the total accrual in hours times the employee's base hourly salary at the time of his/her death. Short Term / Long Term Disability Insurance Nothing in this policy shall restrict or limit disabled employees’ access to benefits otherwise available through short or long term disability insurance provided by the Authority, if any. Employees electing such benefits shall be governed by such insurance policies. Page 1 of 1 ADMINISTRATIVE PROCEDURE SUBJECT: WORK RELATED DISABILITY SEVERANCE PAY PROCEDURE NUMBER: AP/90-16A ORIGINATED DATE: December 19, 1990 REVISED DATES: 6/28/06 Introduction The Authority provides Workers' Compensation benefits as prescribed by law to protect employees injured on the job. While these benefits are designed to safeguard against catastrophic financial loss to the injured employee arising from medical expense and loss of income, the Authority wishes to extend a severance benefit to employees terminated due to a job-related disability. Eligibility This procedure applies to all personnel employed by Seacoast Utility Authority. Procedure Any employee terminated from the employ of Seacoast Utility Authority for job disability directly attributable to a work related injury or illness (covered under the Authority's Workers' Compensation insurance) shall be paid for accrued sick and vacation leave at 100%. This shall be a lump sum payment calculated as the employee's accrual in hours as of the termination date multiplied by the employee's base hourly salary as of that date. In the case of death of an eligible employee in a work-related injury or illness (for which benefits will be payable under the Authority's Workers' Compensation insurance), the Authority shall pay to the employee's designated primary beneficiary (defined by the Authority's Workers' Compensation insurance provider) the full value of the employee's sick and vacation accrual as described in the preceding paragraph. Page 1 of 2 ADMINISTRATIVE PROCEDURE SUBJECT: ACCOUNTING PROCEDURE, MASTER PLAN CONTRIBUTED ASSETS PROCEDURE NUMBER: AP/91-18A ORIGINATED DATE: January 23, 1991 REVISED DATES: 6/28/06 Introduction The Uniform Extension Policy of Seacoast Utility Authority requires that the Authority collect a prescribed level of connection charge for each Equivalent Residential Connection served. From time to time, it is more cost effective to permit the developer of a parcel to construct and dedicate to the Authority certain "Master Plan" facilities (primarily water mains, force mains and lift stations) that would otherwise be the responsibility of the Authority to construct. In these instances, the Authority determines the fair market value of such conveyances and, as permitted by the Uniform Extension Policy, accepts dedication of the physical improvement as the equivalent of cash in the payment of connection charges. Applicability This procedure applies to any asset received by the Authority in lieu of connection charges under the terms of a developer agreement approved by the Seacoast Utility Authority Board. Procedure 1. All cash payments of connection charges, whether representing all or part of a developer's connection charge obligation, will be distributed among the Authority's accounts as prescribed by the Indenture. 2. No bookkeeping entry for any contributed asset will be made until: a. The asset has been found to be acceptable to the Authority; b. A bill of sale showing the full value of the dedication, on a form acceptable to the Authority, has been received by the Authority. Page 2 of 2 3. The Authority shall retain sole discretion in determining the fair market value of the conveyance, making certain that the final value of the transaction, in cash plus facilities, exactly equals the appropriate connection charges for the project. Any adjustments shall be made through a cash transaction at the time of conveyance. If the total of cash plus facilities received is in excess of the developer's connection charge obligation, the Authority shall reimburse the developer the difference out of the Capital Payments Account. Conversely, should the developer's combined contribution of cash and property total less than his aggregate connection charge obligation, he shall be required to remit payment for the difference. 4. In the event that there are insufficient funds in the Capital Payments Account to effect the transaction, it shall be deferred until such time as the fund balance becomes adequate. Page 1 of 1 ADMINISTRATIVE PROCEDURE SUBJECT: PAY GRADE/SALARY ADJUSTMENTS, TREATMENT PLANT OPERATORS PROCEDURE NUMBER: AP/90-17A ORIGINATED DATE: DECEMBER 19, 1990 REVISED DATES: 6/28/06 Introduction The State of Florida requires that water and wastewater plant operating personnel be licensed. This program administered by the Florida Department of Environmental Regulation, provides for certification at three levels: A, B, and C. Equivalent experience requirements range from three years at the Class C level to 12 years at the Class A level. The purpose of this procedure is to provide incentive and recognition for operators having achieved successively higher levels of certification through successful examination completion. Procedure For any individual classified under the Authority's pay and classification system as a Water or Wastewater Plant Operator, the Authority shall award the following salary increases upon receiving evidence of having achieved a higher level of certification: Trainee to Class C - 10% Class C to Class B - 5% Class B to Class A - 5% This increase shall be applied to the employee's base hourly salary to be effective with the beginning of the pay period following receipt of a Personnel Action Form (PC)from the Personnel Specialist. Such authorization shall not be given until proper documentation is received from the State of Florida and approval by the Executive Director. Concurrently with the salary adjustment, the employee shall be reclassified to a pay range commensurate with the new level of certification, subject to a satisfactory or better performance evaluation. An employee who skips a level of certification shall be awarded a 5% increase or an adjustment to the bottom of the appropriate pay grade, whichever is greater. Page 1 of 2 ADMINISTRATIVE PROCEDURE SUBJECT: CUSTOMER BILLING INQUIRIES/DISPUTES PROCEDURE NUMBER: AP/91-19A ORIGINATED DATE: February 27, 1991 REVISED DATES: 6/22/05 Introduction It is the responsibility of the Customer Relations Department to see that all regular billings for water and sewer service are collected in a manner consistent with Authority policy. Further, the Department handles and responds to calls from customers concerning initiation and disconnection of service, water quality and pressure problems, sewage backup and odor complaints. In all matters of a technical nature, Customer Relations Representatives are authorized to call upon such in-house expertise as is available, but the Representative taking the original call is responsible to ensure that the final resolution is entered in the permanent records of the Authority. The purpose of this Administrative Procedure, however, is to establish the respective authority and responsibility of each employee in addressing billing questions and conflicts. Applicability This appeal procedure is available to every customer receiving a bill for regular water and/or sewer service from Seacoast Utility Authority. The Customer/Service Billing Manager, Director of Administrative Services or Executive Director is authorized to enter into any billing dispute at any time if he/she feels that intervention is warranted. Procedure 1. Billing Inquiries All initial contact by the customer shall be directed to a Customer Relations Representative (CRR). The CRR is authorized to discuss with the customer all information relative to that particular customer's account status and history, as well as answer any questions as to the Authority's customer service policies and procedures, rates and charges. The CRR is further authorized to initiate field service orders to investigate potential problems such as leaks, misreads, extra- ordinary consumptions, or any other matter which the CRR deems to merit closer scrutiny. If technical assistance is required in addressing the customer, the CRR shall be authorized to call upon such technical expertise as is available in-house to assist in the explanation. If the CRR is convinced that the bill as rendered is accurate, the CRR shall contact the customer and report the results of the investigation, keeping accurate records of conversations and activities. Should the investigation reveal an error on the Authority's part and the corrective adjustment exceeds a total of $25 in value, the CRR shall be responsible to note the nature of the discrepancy, discuss the manner in which the billing will be adjusted (if at all) with the Customer/Community Relations Supervisor (CCRS), and contact the customer with a detailed description of the remedial activity. The CRR is authorized to make billing adjustments equal to or less than $25 per incident, per customer account, without immediate notification to supervisory personnel. All such adjustments shall be logged and reported to the Customer Service/Billing Manager (CSBM) on a regular basis. The CCRS is authorized to make billing adjustments up to $100 per account per year without further authorization, providing such adjustments are in accordance with law and applicable Authority policies and covenants. Given the same constraints, the billing adjustment authorization limit for the CSBM shall be $1,000 per account per year and for the Director of Administrative Services $2,000 per account per year. Page 1 of 2 ADMINISTRATIVE PROCEDURE SUBJECT: DISPOSAL OF CAPITAL ASSETS OR OTHER AUTHORITY PROPERTY PROCEDURE NUMBER: AP/91-20B ORIGINATED DATE: JULY 24, 1991 REVISED DATES: 6/24/92, 6/28/06 Introduction From time to time, property of the Authority may become obsolete, unserviceable, or "surplus" and as a result may have no further use to the Authority. The purpose of this Administrative Procedure is to establish the processes for determining, authorizing and effecting disposal of such unusable property. 1. When a department has reason to believe that any inventory item(s) or a capital asset has outlived its usefulness, a "Fixed Asset Transfer/Disposal" Form shall be submitted to either the Purchasing Agent or the Utility Services Manager, depending upon if it is a transfer of disposal of property. The Utility Services Manager shall review all requests for capital asset disposals while property transfer requests shall be reviewed by the Purchasing Agent. 2. The Utility Services Manager shall make a determination of the asset(s)'s condition and report such to the Executive Director along with a recommended disposition. 3. The Executive Director, based upon the recommendations of the requesting department manager and the Utility Services, will then submit the request to the Consulting Engineer for a determination of whether such request exceeds 2% of the total historical cost of Utility System property, plant, and equipment. If the proposed sale or disposition, as determined by the Consulting Engineer, is found to represent more than 2% of the total historical cost of Utility System property, plant, and equipment, the Consulting Engineer must deliver in writing to the Trustee a statement that such property to be sold or disposed of will not materially and adversely affect the Net Operating Revenues of the Utility System in any of the five (5) fiscal years following the fiscal year in which the property is sold. 4. The Executive Director, on the appropriate form, shall submit his recommendation to the Authority Board for final disposition. Procedures for Disposal When it is determined to be in the best interest of the public and the Authority and upon Authority Board approval: 1. Capital assets/inventory items may be disposed of by public auction or sealed bid. The Utility Services Manager shall be responsible for gathering and maintaining detailed (inventory) records of all property approved by the Board for public auction. Once Board approval is obtained on "surplus" property, the participating entities comprising the Seacoast Utility Authority will be notified and given first right to acquiring the surplus items. Upon the sale, the Utility Services Manager shall submit all Page 2 of 2 records evidencing sale and disposal to the Finance Department for appropriate adjustment to financial records. 2. When deemed practical from an economic sense, a capital asset or other Authority property item may be "traded in" on a new comparable replacement. Such trade-in value shall be shown on the purchase order, payment request form and invoice. 3. When it is determined that public auction is not the appropriate means of disposition for a particular property item(s) or when no sealed bids are received pursuant to a public offering, the materials may be sold as scrap provided that at least three (3) (if obtainable) written quotations for purchase are received by the Utility Services Manager or Purchasing Agent. The quotations and any documents evidencing disposal shall be submitted to the Finance Department for recordkeeping purposes. If no written quotes can be obtained, the materials may be sold to any interested party on a first come first served basis. All other efforts to dispose of the property failing, the Utility Services Manager shall dispose of the property in a manner conforming to law and sound environmental practice. However, the "Fixed Asset Transfer/Disposal" Form shall be submitted to the Finance Department along with any other documentation. 4. All proceeds received from the sale of Authority property shall be deposited into the Renewal and Replacement Fund in accordance with bond indenture requirements. 5. Other means of disposal may be approved as necessary by the Executive Director and Authority Board. Attachment Page 1 of 1 ADMINISTRATIVE PROCEDURE SUBJECT: CAPITALIZATION POLICY PROCEDURE NUMBER: AP/91-21B ORIGINATED DATE: SEPTEMBER 1, 1991 REVISED DATES: 8/28/91, 6/28/06 Introduction Each year the Authority, as set forth in the Annual Operating, Maintenance and Capital Budget, expends funds to operate and maintain the public water and sewer system. Some of these expenditures are for the acquisition of assets, major repairs, or other purposes other than normal recurring operating and maintenance expenses. Such expenditures require special accounting treatment. Applicability The following types of expenditures will be classified as "capital" expenditures and will be charged to an appropriate G/L capital account: 1. A "Capital Outlay" expenditure is one that involves the purchase of a fixed asset having a cost/unit value of at least $750.00 and a useful (depreciable) life of more than one (1) year. However, a group of like items (multiple units purchased at the same time) meeting the useful life criteria may be capitalized if the total cost exceeds $750.00, although the cost per item or unit is less than $750.00. All capital outlay items shall be charged to an appropriate fixed asset G/L account number and assigned a work order number for control purposes. Unlike capital outlays, "commodity expense items" are generally charged to an expense account and are usually expendable within the fiscal period. They may be in the nature of chemical supplies, contractual services, charges for utility services, materials, or even small equipment purchases under $500.00 in unit value. 2. A "Capital Improvement" is an expenditure or a series of expenditures for one homogeneous project with a value of at least $5,000.00 and a useful (depreciable) life of three (3) or more years. A capital improvement usually involves construction of a structure or installation of major equipment and is of a permanent nature. Capital improvement projects often include architectural and engineering design costs, construction and major equipment costs in connection with a new or expanded facility. All capital improvements shall be assigned a project number and shall be charged to the proper construction work in progress capital account until such time as the project is complete and fully accepted by the Authority. Accounting personnel shall transfer the total costs to the appropriate fixed asset G/L account number upon formal acceptance of the project. All capital renewals/betterments are to be charged to the appropriate construction work in progress capital account until such time as formal acceptance takes place. The accounting department will then transfer the cost to the appropriate fixed asset G/L account number. The capitalization policy is intended to be a guideline for determining what and when to "capitalize" an expenditure. It is not intended to displace logical, sound judgment and common sense when applying the principles. It is expected that proper budgetary practices will be followed and existing policy concerning purchasing and emergency spending will be used. Page 1 of 10 ADMINISTRATIVE PROCEDURE SUBJECT: DRUG-FREE WORKPLACE POLICY PROCEDURE NUMBER: AP/95-28C ORIGINATED DATE: FEBRUARY 27, 1995 REVISED DATES: 2/28/96, 11/18/98, 6/28/06 I. PURPOSE AND INTENT As part of its commitment to safeguard the health of the employees, to provide a safe place for its employees to work, and to promote a drug-free workplace, Seacoast Utility Authority (SUA) has established this policy on the use or abuse of alcohol and drugs by its employees. Substance abuse, while at work or otherwise, seriously endangers the safety of employees, as well as the general public, and creates a variety of workplace problems, including increased injuries on the job, increased absenteeism, increased health care and benefit costs, decreased morale, and a decline in the quality of services provided. Practical experiences have proven that limited quantities of various narcotics, abused prescriptions drugs or alcohol can impair reflexes and judgment. For these reasons, we have adopted a policy that all employees must report to work completely free from the presence of unauthorized drugs and the effects of alcohol. This policy is implemented pursuant to the Drug-Free Workplace program under the Florida Workers' Compensation Act (Section 440.102, Florida Statutes). This law provides that an employee who is injured in the course and scope of employment, and who tests positive on a drug or alcohol test or who refuses to be tested forfeits his/her eligibility for Workers' Compensation medical and indemnity benefits. This policy represents SUA's current position on dealing with the serious problem of drug and alcohol abuse in the workplace and is subject to change at the sole discretion of SUA. II. SCOPE All current employees and job applicants are covered by this policy and as a condition of employment are required to abide by the terms of this policy. Because of state or federal laws and regulations, certain employees may be subject to additional requirements. III. DEFINITIONS The definitions and rules set forth in the Florida Workers' Compensation Drug Testing Rule will apply to this policy. These definitions and rules are listed in the Drug-free Workplace program which is located in each work group's Safety and Health Manual. IV. POLICY A. Alcohol Use Prohibitions 1. All employees are prohibited from distributing, dispensing, possessing, using or being impaired, intoxicated, or under the influence of alcohol while at work, on duty, or while operating a company vehicle. Page 2 of 10 2. Off-duty abuse of alcohol which adversely affects an employees' job performance or which can be expected to cause harm to SUA's image or relationship with other employees or the public is prohibited. 3. For the purposes of this policy, an employee is presumed to be impaired, intoxicated, or under the influence of alcohol if a blood test or other scientifically acceptable testing procedure shows that the employee has a threshold level of at least 0.02 or more percent blood alcohol concentration (or as may be changed by State law) in the blood sample taken from his/her system at the time of testing. 4. An employee who is perceived to be under the influence of alcohol will be removed immediately from the workplace and may be evaluated by medical personnel, if reasonably available. SUA will take further action based on medical information, work history, and other relevant factors. The determination of what action is appropriate in each case rests solely with SUA. 5. Employees arrested for an alcohol-related incident must immediately notify their supervisor if the incident occurs: a. During scheduled work hours. b. While operating a company vehicle on company or personal business. c. While operating a personal vehicle on company business. Failure to notify an appropriate supervisor as described above may result in disciplinary action, up to and including discharge. B. Drug Use Prohibitions 1. All employees are prohibited from manufacturing, distributing, dispensing, possessing, or using illegal drugs or other unauthorized substances while on SUA property (including parking areas and grounds) or while otherwise performing SUA duties off SUA property. Included within this prohibition are lawfully controlled substances which have been illegally or improperly obtained. Employees are also prohibited from having any such illegal or unauthorized controlled substances in their systems while at work and from having excessive amounts of otherwise lawful controlled substances in their systems. 2. For the purposes of this policy, an employee is presumed to be impaired by drugs if results of a urine test or other acceptable testing procedure are positive for the presence of one or more of the illegal substances for which SUA will test. 3. The proper use of medication as prescribed by an employee's physician is not prohibited; however, SUA does prohibit the misuse of prescribed medications. Prescription drugs may also affect the safety of the employee, fellow employees, or members of the public. Therefore, any employee who is taking any prescription drug which might impair safety, performance, or any motor functions is obligated to notify his or her supervisor before reporting to work or during the course of work if under the use of such medication. Failure to do so may result in disciplinary action. It is the employee's responsibility to determine from his/her physician whether a prescribed drug may impair job performance. If SUA determines that such use does not pose a safety risk, the employee will be permitted to work. If, in the opinion of the supervisor, such use impairs the employee's ability to safely or effectively perform his or her job, SUA may, at its sole discretion, temporarily reassign the Page 3 of 10 employee or grant a leave of absence during the period of treatment. Improper use of prescription drugs is prohibited and may result in disciplinary action, up to and including discharge. Prescription medication must be kept in its original container if such medication is taken during working hours or on SUA property. C. Testing - If testing for drugs or alcohol requires use of an employee's personal time a request for overtime pay should be submitted following notice from the medical review officer of a negative test result. Overtime will not be paid to employees who test positive for alcohol or unauthorized drugs. SUA shall conduct drug tests in the following circumstances: 1. Application for employment a. All job applicants, once offered a position, will be tested for the presence of illegal drugs as part of the hiring process. b. Any job applicant who refuses to submit to drug testing, refuses to sign a consent form, fails to appear for testing, tampers with the test, or fails to pass the pre- employment selection drug test will be ineligible for hire. Such an individual may not reapply for employment with SUA for at least one (1) year from the date of the drug test. 2. Reasonable Suspicion a. Employees must submit to a drug test if SUA has reasonable suspicion that they have violated any of the rules set forth in this policy. "Reasonable Suspicion" may arise from, among other factors: (1) Direct observation of drug use or of the physical symptoms or manifestations of being under the influence of a drug. (2) Deterioration in observable work performance by a supervisor. (3) Co-worker report of drug use. (4) Evidence that an individual has tampered with a drug test during his/her employment with SUA. (5) Causing or contributing to workplace or vehicular accident which indicates a possible error in judgment or negligence, or results in injury requiring medical attention beyond first aid or results in property damage exceeding $500.00. (6) Evidence that an employee has used, possessed, sold, solicited or transferred drugs while working or while on SUA premises or while operating SUA vehicles, machinery, or equipment. (7) Excessive or unexcused absence or tardiness. (8) Violation or neglect of safety regulations. (9) Violation of other commonly accepted or published rules of conduct. (10) Reporting for work or working in a condition unfit for duty. 3. Routine Fitness for Duty Any employee will submit to a drug test if the test is conducted as part of a routine employee fitness-for-duty medical examination that is part of SUA's established policy or that is scheduled routinely for all members of an employment classification or group. Page 4 of 10 4. Follow-up Test If the employee in the course of employment enters an employee assistance program for drug related problems, or an alcohol and drug rehabilitation program, the employee must submit to a drug test as a follow-up to such a program, and on a quarterly, semi-annual, or annual basis for up to two years thereafter. V. DRUGS/SUBSTANCES COVERED BY THIS POLICY 1. SUA will test for the following drugs or controlled substances as defined in Section 893.03, Florida Statutes, as amended from time to time, to include, but not limited to: a. Alcohol (booze, drink) b. Amphetamines (Desoxyn, Dexedrine) c. Cannabinoids (marijuana, hashish, hashoil, pot, joint, roach, spiff, grass, weed, reefer) d. Cocaine (coke, blow, nose candy, snow, flake, crack) e. Methaqualone f. Opiates (opium, dover's powder, paregoric, parepectolin) g. Barbiturates (phenobarbital, ruinal, amytal) h. Benaodiazepines (ativan, azene, clonopin, dalmane, etc.) i. Methadone (dolophime, methadose) j. Propoxyphene (darvocet, darvon-n, dolene) k. Phencyclidine (pcp) l. Lysergic acid diethylamide (lsd) m. Heroin VI. CONFIDENTIALITY All information, interviews, reports, statements, memoranda, and drug and alcohol tests results, written or otherwise received by SUA through this policy are confidential communications and will be maintained in a separate file. SUA, any laboratory, Employee Assistance Program, drug or alcohol treatment program or their agents who receive or have access to this information concerning drug test results shall keep it confidential. Release of such information under any other circumstances shall be solely pursuant to a signed written informed consent form, unless such release is compelled by hearing officer or court of competent jurisdiction or if deemed appropriate by a professional or occupational licensing board in a related disciplinary proceeding. Additionally, SUA, its agents, the laboratory or treatment program shall not be prohibited from releasing this information when consulting legal counsel in actions brought under or related to Section 440.102, Florida Statutes, or when such information is relevant to its defense in civil or administrative matter. VII. CONSEQUENCES OF TESTING POSITIVE OR REFUSAL TO ALLOW TEST 1. A job applicant who refuses a drug test will not be hired. An applicant who submits to a drug test which is both positive and confirmed as positive will not be hired. 2. In the event an employed worker who has not been injured, refuses to submit to a drug or alcohol test or is tested positive and confirmed positive may be subject to one or more of the following requirements: Page 5 of 10 a. Attend educational seminars and courses and participate in an employee assistance program. b. Require attendance at rehabilitation programs. c. Agree to reasonable discipline which may include job transfer to a less hazardous position, probationary employment and/or reduction in compensation. d. Immediate discharge from employment. e. Denial of unemployment benefits. 3. In the event an employed worker is injured in the course and scope of their employment and who refuses to submit to a drug or alcohol test or who submits and is tested pursuant to company policy and who has a positive confirmation of a drug or alcohol shall be subject to one or more of the following: a. Forfeit their eligibility for medical and indemnity benefits under the Florida Workers' Compensation Act. b. Forfeit their eligibility for unemployment benefits. c. Be terminated from employment. d. Otherwise be subject to the sanctions provided above for an employed worker who is not injured. VIII. CONVICTIONS If you are convicted of any drug related crime (sale, use or possession), you must notify SUA within five (5) days of your conviction. Failure to notify SUA of such convictions is grounds for termination. ADDITIONAL REQUIREMENTS FOR COMMERCIAL DRIVER LICENSEES I. GENERAL In accordance with the United States Department of Transportation Federal Motor Carrier Safety Regulations, Title 49 Code of Federal Regulations (CFR) Part 382, Seacoast Utility Authority (SUA) has established this program. Part 382 preempts any State or local laws, rules, regulations or orders. The purpose of this program is to help prevent accidents and injuries resulting from the misuse of alcohol or use of controlled substances by drivers of commercial motor vehicles. If a driver has any questions concerning this program s/he should ask the Programs Coordinator. II. APPLICABILITY This program applies to every person who must operate a commercial motor vehicle on roadways within the United States as part of their job with SUA. Drivers shall be within the alcohol concentration limits and free from the controlled substances listed in this program anytime the driver is on duty with SUA. Drivers are required to submit to alcohol and controlled substances testing according to Part V of this program and the existing Drug-Free Workplace Program. III. DEFINITIONS PLEASE REFER TO THE DRUG FREE WORKPLACE PROGRAM SAFETY & HEALTH MANUAL. IV. PROHIBITIONS A. No driver shall report for duty or remain on duty requiring the performance of safety- sensitive functions while having an alcohol concentration of 0.04 or greater. SUA will not Page 6 of 10 allow a driver who has been found to have an alcohol concentration of 0.04 or greater to perform or continue to perform safety-sensitive functions. B. No driver shall be on duty or operate a commercial motor vehicle while the driver possesses alcohol. SUA will not allow a driver in possession of alcohol to drive or continue to drive a commercial motor vehicle. C. No driver shall use alcohol while performing safety-sensitive functions. SUA will not allow a driver who is found to be using alcohol while performing safety-sensitive functions to perform or continue to perform safety-sensitive functions. D. No driver shall perform safety-sensitive functions within four hours after using alcohol. If SUA has knowledge that a driver has used alcohol within the last four hours that driver will not be allowed to perform or continue to perform safety sensitive functions. E. No driver required to take a post-accident alcohol test under this program shall use alcohol for eight hours following the accident, or until s/he undergoes a post-accident alcohol test, whichever occurs first. F. No driver shall refuse to submit to a: post-accident, random, reasonable suspicion, return to duty, or a follow-up, alcohol or drug test. SUA will not allow a driver who refuses to submit to such tests to perform or continue to perform safety-sensitive functions. G. No driver shall report for duty or remain on duty requiring the performance of safety- sensitive functions when the driver uses any controlled substance, except when the use is pursuant to the instructions of a physician who has advised the driver that the substance does not adversely affect the driver’s ability to safely operate a commercial motor vehicle. SUA, upon learning a driver has used a controlled substance will not allow the driver to perform or continue to perform safety-sensitive functions. Drivers are required to inform their supervisor of any therapeutic drug use. H. No driver shall report for duty, remain on duty or perform a safety-sensitive function, if the driver tests positive for controlled substances or has adulterated or substituted a test specimen (382.215). SUA will not allow a driver who has tested positive for controlled substances or has adulterated or substituted a test specimen (Part 382.215) to perform or continue to perform safety-sensitive functions. V. TESTING REQUIREMENTS A. Pre-employment testing 1. Prior to the first time a driver performs safety-sensitive functions for SUA, the driver shall undergo testing for controlled substances. SUA will not allow a driver to perform safety-sensitive functions unless the driver has been administered an alcohol test with a result indicating an alcohol concentration less than 0.04, and has received a controlled substances test result from the medical review officer indicating a verified negative test result. SUA is not required to administer alcohol or controlled substance testing according to the following exceptions: a. Exception for pre-employment alcohol testing: - the driver has undergone an alcohol test required by 49 CFR section 382.301 or the alcohol misuse rule of another DOT agency under Part 40 Page 7 of 10 of 49 CFR within the previous six (6) months with a result indicating an alcohol concentration less than 0.04 and; - SUA ensures that no prior employer of the driver of whom SUA has knowledge has records of a violation of this part or the alcohol misuse rule of another DOT agency within the previous six months b. There are no exceptions for controlled substance testing. SUA will test every job applicant for controlled substances according to the Drug-Free Workplace Policy. B. Post-accident testing 1. As soon as practicable following an accident involving a commercial motor vehicle, SUA shall test for alcohol and controlled substances each surviving driver: a. who was performing safety-sensitive functions with respect to the vehicle, if the accident involved the loss of human life; or b. who receives a citation within eight (8) hours of the occurrence (Part 382.303(s)) under state or local law for a moving violation arising from the accident. 2. A driver who is subject to post-accident testing shall remain readily available for such testing or may be deemed by SUA to have refused to submit to testing. Nothing in this program shall be construed to require the delay of necessary medical attention for injured people following an accident or to prohibit a driver from leaving the scene of an accident for the period necessary to obtain assistance in responding to the accident, or to obtain necessary emergency medical care. C. Random testing 1. A minimum of ten (10) percent of the annual average number of driver positions will be tested for alcohol each year. 2. A minimum of fifty (50) percent of the annual average number of driver positions will be tested for controlled substances each year. Drivers randomly selected for controlled substance testing will be randomly selected for alcohol testing. a. The percentage of drivers tested each year may change based on the reported violation rate for the entire industry. 3. The selection of drivers for random alcohol and controlled substance testing shall be made by using a random number table of a computer-based random number generator that is matched with a driver’s social security number, employee number or other comparable identifying number. The tests conducted under this policy will be unannounced and the dates for administering the tests will be spread reasonably throughout the calendar year. Drivers selected for the random testing will proceed immediately or as soon as possible to the sample collection site. D. Reasonable suspicion testing Page 8 of 10 1. Drivers will be required to submit to an alcohol and/or controlled substance test when the employer has reasonable suspicion to believe that the driver has violated the prohibitions of Part IV. of this program or the Drug-Free Workplace Program. 2. SUA's determination that reasonable suspicion exists to require the driver to undergo a alcohol or controlled substance test must be based on specific, contemporaneous, articulable observations concerning the appearance, behavior, speech or body odors of the driver. The observations include indications of the chronic and withdrawal effects of controlled substances. 3. The required observations for alcohol and/or controlled substances reasonable suspicion testing shall be made by a supervisor or company official who is trained in accordance with 49 CFR section 382.603. A written record shall be made of the observations leading to a reasonable suspicion test, and signed by the supervisor or company official who made the observations, within 24 hours of the observed behavior or before the results of the controlled substances test are released, whichever is earlier. 4. Notwithstanding the absence of a reasonable suspicion alcohol test under this policy, no driver shall report for duty or remain on duty requiring the performance of safety-sensitive functions while the driver is under the influence of or impaired by alcohol, as shown by the behavioral, speech, and performance indicators of alcohol misuse, nor shall SUA permit the driver to perform or continue to perform safety-sensitive functions until: a. An alcohol test is administered and the drivers alcohol concentration measures less than 0.02; or b. Twenty-four hours have elapsed following the determination that there is reasonable suspicion to believe that the driver has violated the prohibitions of this policy. 5. SUA shall not take any action against a driver based solely on the driver’s behavior and appearance, with respect to alcohol use, in the absence of an alcohol test. This does not prohibit an employer with independent authority of this part from taking any action otherwise consistent with law. E. Return to duty testing. Before a driver returns to duty requiring the performance of a safety- sensitive function after engaging in conduct prohibited by Section IV. of this program concerning alcohol or controlled substances the driver shall undergo a return-to-duty alcohol and/or controlled substance test, with a result indicating an alcohol concentration of less than 0.02 or a controlled substance test with a verified negative result. F. Follow-up testing. Following determination by a substance abuse professional that a driver is in need of assistance in resolving problems associated with alcohol misuse and/or controlled substances, SUA shall ensure that the driver is subject to follow-up alcohol and/or controlled substances testing as directed by a substance abuse professional. The number and frequency of such follow-up testing shall be as directed by the substance abuse professionals, and consist of at least six (6) tests in the first twelve (12) months following the driver’s return to duty. SUA may direct the driver to undergo return-to-duty and follow-up testing for both alcohol and controlled substances, if the substance abuse professional determines that return-to-duty and follow-up testing for both alcohol and controlled substances is necessary for that particular driver. Any such testing shall be performed in accordance with the requirements of 49 CFR Part 40. Page 9 of 10 VI. TESTING PROCEDURES A. Breath will be used as the initial and confirmation test for alcohol. A qualified breath alcohol technician (BAT) will administer the test at SUA's sample collection site using an evidential breath testing (EBT) device. The Breath Alcohol Testing Form, which must be signed by the driver, will be used to document the test results. Controlled substance testing will be accomplished by testing a sample of urine. Initial controlled substance screening will be performed by Enzyme Multiplied Immunoassay Technique (EMIT) with confirmation by Gas Chromatography/Mass Spectrometry (GC/MS). Drivers will be able to confidentially report the use of prescription drugs both before and after being tested, as presence of those medications in the body may affect the outcome of the test. A form for this purpose will be given to the driver at the collection site as part of the chain of custody form. The driver must complete and sign the chain of custody form. This form includes a specimen identification number that will be attached to the sample container to maintain confidential identification of the sample donor. Test results will be reported to the SUA Director of Administrative Services and/or the SUA Personnel Technician. All information received by SUA through alcohol and drug testing is confidential to the extent of the law. B. Controlled substances covered by this program: 1. SUA will test for the following controlled substances under this program. a. marijuana b. cocaine c. phencyclidine(pcp) d. opiate metabolites (Pare 40.85) e. amphetamines VII. CONSEQUENCES OF TESTING POSITIVE OR REFUSAL TO SUBMIT TO TESTING A. A driver who tests positive or refuses to submit to testing may be subject to one or more of the following requirements: 1. Attend educational seminars and courses and participate in an employee assistance program. 2. Require attendance at rehabilitation programs. 3. Agree to reasonable discipline which may include job transfer to a less safety- sensitive position. 4. Immediate discharge from employment. 5. Denial of unemployment benefits. 6. Immediate removal from safety-sensitive functions. 7. Evaluation by a substance abuse professional. 8. Undergo a return to duty alcohol and/or controlled substance test 9. Undergo follow-up alcohol and/or controlled substances tests consisting of at least six (6) tests in the first twelve (12) months. 10. Drivers who are found to have an alcohol concentration of 0.02 or greater but less than 0.04 will not be allowed to perform or continue to perform safety-sensitive functions until the start of the next regularly scheduled duty period, but not less than twenty-four (24) hours following administration of the test. B. The requirements of this section with respect to referral, evaluation and rehabilitation do not apply to applicants who refuse to submit to a pre-employment alcohol or controlled Page 10 of 10 substances test or who have a pre-employment alcohol test with a result indicating an alcohol concentration of 0.04 or greater or a controlled substances test with a verified positive test result. VIII. COST OF TESTING The choice of substance abuse professional and assignment of costs shall be made in accordance with SUA policies. Page 2 of 2 2. Appeals Should the customer be dissatisfied with the measures taken by the CRR, the matter shall be referred to the CCRS for further review. The CCRS shall review the manner in which the matter has been handled, making certain that all possible avenues of resolution have been pursued and that the position of the Authority has been clearly explained to the customer. Once the CCRS is satisfied that the meter is accurate within the parameters set forth in the Authority's service policy and was read correctly and that the customer has been billed only for services and/or product actually delivered, the CCRS may offer a payment plan to the customer. The CCRS is authorized to offer a plan which amortizes only that portion of the contested bill which is greater than the average bill for that customer over the twelve month period immediately preceding the contested bill, with the amortization period not to exceed six months. Further, the CCRS is authorized to calculate and issue sewer credits in those instances where s/he is convinced that water delivered to the customer was not returned to the sanitary sewer system. Should the customer wish to appeal the matter further, the CCRS shall provide the CSBM with an analysis of the dispute and action taken to date. The CSBM shall be authorized to alter the Authority's response if s/he feels that earlier staff action is inappropriate or does not conform to Authority policy. Further, the CSBM may extend the amortization period to a maximum of twelve months if, in the CSBM's judgment, a lesser amortization period will cause hardship to the customer. While the CSBM may use discretion in extending an amortization period, no such extension should permit the customer to make a monthly amortization payment that is less than 50% of the customer's average monthly billing for the immediately preceding twelve month period. Further appeals may be made successively through the Director of Administrative Services and then to the Executive Director. Each shall have increasing authority to alter payment plans, amortization schedules and sewer credits within the limitations of the Trust Indenture and applicable law. The Executive Director may, at his/her option, seek the counsel of legal, engineering, or operations consultants before rendering a final judgment as to the disposition of the dispute. Once all staff level avenues as described herein have been pursued, the customer shall be deemed to have exhausted all administrative appeals. By approval of this Administrative Procedure, the Seacoast Utility Authority Board delegates to the Executive Director the authority to serve as the final administrative arbiter of all billing dispute issues. Page 1 of 2 ADMINISTRATIVE PROCEDURE SUBJECT: BAD DEBT WRITE-OFF POLICY PROCEDURE NUMBER: AP/91-22B ORIGINATED DATE: April 28, 1991 REVISED DATES: 8/28/91, 11/19/03 Introduction During the course of doing business as a government entity, it may be necessary to write off delinquent accounts receivable that are deemed to be doubtful of collection after applying all practical collection efforts and producing unsuccessful results. The following policy establishes the procedures and controls for writing off bad debts. Procedure – Utility Service Receivables 1. An "Aging Receivables Schedule" shall be prepared at least annually, or more frequently if appropriate, listing the account name, the source of the receivable, and the amount due to the Authority. 2. The Customer Service Billing Manager shall review all delinquent accounts monthly and the course(s) of action being taken to determine what additional steps, if any, are to be initiated. Possible courses of action that may be taken are but not limited to: a. Additional "collection letters" to the debtor requesting payment and, depending upon circumstances, stating what action is to be taken if payment is not made. The first collection notification shall be sent via regular US mail at 25 days from bill date. The second collection notification shall appear on the customer’s subsequent utility service monthly bill. b. Refer the account to the Authority attorney if the account is over 120 days old and if the amount due exceeds $1,000.00. Procedure – Non-Utility Service Receivables 1. An “Aging Receivables Schedule” shall be prepared monthly, listing the account name and the amount due to the Authority. 2. The manager of the department in which the receivable(s) originated shall review all delinquent accounts monthly and the course of action(s) being taken to determine what additional steps, if any, are to be initiated. Possible courses of action that may be taken are, but not limited to: a. The receivable shall be placed on the customer’s monthly utility service bill if damage is caused by the customer, a contractor hired by the customer or a subcontractor of the contractor hired by the customer. Page 2 of 2 b. Service may be withheld until payment is received for any damages caused by a developer or contractor (or subcontractor of the contractor). c. Submit any receivables requesting involvement by the Department of Motor Vehicles (DMV) to the Authority attorney for further action (such as damage to Authority property caused while driving a vehicle). d. Additional “collection letters” to the debtor requesting payment and, depending upon circumstances, stating what action is to be taken if payment is not made. The first collection letter shall be sent via regular US mail at 45 days from invoice date, the second and third collection letters shall be sent via certified US mail at 90 and 120 days from invoice date, respectively. e. Refer the account to the Authority attorney if the account is over 120 days old and if the amount due exceeds $1,000. 3. The following procedure is required for writing off both utility service and non-utility service accounts deemed to be bad debts: a. The account must be at least 120 days old and any customer deposit related to the account must have been applied against the debt, if applicable. b. Supporting documentation such as previous billing invoices, computer printouts, service orders, collection letters, etc., related to any write- off must be retained for the files with a copy of the approved write-off. c. If appropriate, further collection avenues should be pursued to collect the debt even after write off. d. To write off an accounts receivable, appropriate support documentation must be submitted to the Finance Department. The Finance Department Manager will present to the Executive Director an aggregate recommendation for write offs to be taken to the Authority Board for approval, at least once annually. Page 1 of 2 ADMINISTRATIVE PROCEDURE SUBJECT: HIGH BILL DISPUTES PROCEDURE NUMBER: AP/91-23A ORIGINATED DATE: December 18, 1991 REVISED DATES: 6/22/05 Introduction It is the responsibility of the Customer Relations Department to see that all regular billings for water and sewer are collected in a manner consistent with Authority policy. The Department handles and responds to calls from customers concerning the dispute of a bill when the usage is higher than the established average of that customer. The purpose of this Procedure is to establish the respective authority and responsibility of each employee receiving a request for a credit or reduction of a bill. Eligibility This procedure applies to all customers who request a credit or reduction to their bill if it significantly exceeds their established average. The established average is based on the 12 month period preceding the high bill in question. The Customer Service/Billing Manager, Director of Administrative Services or Executive Director is authorized to enter into any high bill dispute at any time if he/she feels that intervention is warranted. Procedure 1. High Bill Investigation STEP # 1 All initial contact by the customer shall be directed to a Customer Relations Rep (CRR). The CRR is authorized to discuss with the customer all information relative to the extraordinary consumption, account status and history, as well as answer any questions regarding the Authority's policies and procedures pertaining to high bill disputes. The CRR is further authorized to initiate field service orders to investigate for possible problems such as leaks, breaks, misreads, misuse of water supply, etc. a. If the CRR is convinced that the bill is accurate, the CRR shall contact the customer and report the results of the investigation, keeping accurate records of conversations and activities. b. Should the investigation reveal an error on the Authority's part, or that the extraordinary usage was the Authority's responsibility, the CRR is authorized to make billing adjustments equal to or less the $25 per incident, per customer account, without immediate notification to supervisory personnel. All such adjustments shall be forwarded in writing to the Customer Service/Billing Manager (CSBM) to be credit to the customer's account. c. If the corrective adjustment exceeds a total of $25 in value, the CRR shall be responsible to note the nature of the discrepancy, discuss the manner in which the billing will be adjusted (if at all) with the Senior Customer/Community Relations Supervisor (CCRS), and contact the customer with a detailed description of the remedial activity. The CCRS is authorized to make billing adjustments up to $100 per account per year without further authorization, providing such adjustments are in accordance with law and applicable Authority policies and covenants. Page 2 of 2 d. Given the same constraints, the billing adjustment authorization limit for the Customer Service/Billing Manager shall be $1000 per account per year, and the Director of Administrative Services authorization limit shall be $2000 per account per year. e. Any billing adjustment exceeding a total of $2000 in value must be approved by the Executive Director. NOTE: The Authority representatives listed in STEP #1 are authorized to calculate and issue sewer credits within their established limits in those instances where s/he is convinced that water delivered to the customer was not returned to the sanitary sewer system. STEP # 2 2. Appeals Should the customer be dissatisfied with the measures taken by the CRR, the matter shall be referred to the CCRS for further review. The CCRS shall review the manner in which the matter has been handled, making certain that all possible avenues of resolution have been pursued and that the position of the Authority has been clearly explained to the customer. Once the CRR and CCRS are satisfied that the meter was read correctly and functions accurately within the parameters set forth in the Authority's Water Service Policy, the CRR or CCRS may offer a payment plan to the customer. a. The CRR and CCRS are authorized to issue a credit based upon the established limits in STEP # 1, and/or offer a payment plan based the 12 month usage history preceding the contested bill. The plan is not to exceed 6 months and if the customer requests more time to pay the contested bill, they are to refer that request to the Customer Service/Billing Manager (CSBM). A payment plan always consists of the current month's bill plus the established allotment for the outstanding balance due. b. Should the customer wish to appeal the matter further, the CCRS shall provide the CSBM with an analysis of the dispute and action taken to date. The CSBM shall be authorized to alter the Authority's response if s/he feels that earlier staff action is inappropriate and does not conform to Authority policy or a customer's special needs. Further, the CSBM may extend the payment plan for a maximum of 12 months or recommend a longer period of time if, in the CSBM's judgment, a lesser amortization period will cause hardship to the customer. c. Further appeals may be made successively through the Director of Administrative Services and then to the Executive Director. Each shall have increasing authority to alter payment plans, amortization schedules and sewer credits within the limitations of the Trust Indenture and applicable law. The Executive Director may, at his option, seek the counsel of legal, engineering, or operations consultants before rendering a final judgment as to the disposition of the dispute. 3. Exceptions Should the customer request further consideration due to extraordinary circumstances or extreme hardship, the customer must put this request in writing to request a time adjustment for review. If the water consumption was unusually high compared to the customer's established average usage and was due to an unforeseen circumstance outside the customer's control, the CSBM may choose to extend an additional credit at his/her discretion. "Extraordinary circumstances" are those situations where neither the Authority nor the customer could have prevented the extraordinary water consumption from occurring. The CSBM may choose to adjust the conservation rate of the disputed bill not to include the estimated usage for the monthly billing in question. The customer must request the adjustment in writing and provide proof that repairs have been made to stop the leak. The customer’s usage will be monitored to confirm the leak is no longer occurring and a credit will be negotiated. By approval of this Administrative Procedure, the Seacoast Utility Authority Board delegates to the Executive Director the authority to serve as the final administrative arbiter of all billing dispute issues. Page 1 of 1 ADMINISTRATIVE PROCEDURE SUBJECT: PAY IN LIEU OF VACATION LEAVE POLICY PROCEDURE NUMBER: AP/92-24C ORIGINATED DATE: April 22, 1992 REVISED DATES: 8/24/94, 6/22/05, 6/28/06 Introduction To provide employees with the opportunity for needed rest, Seacoast Utility Authority has implemented a vacation leave program available to all permanent, full time personnel. Employees are encouraged to plan and use accrued vacation leave carefully, taking sufficient time away from the job each year to maintain a positive and alert approach to their work. It is recognized, however, that from time to time it may be advantageous to allow an employee to receive pay in lieu of time away from the job. The following procedure ensures that all personnel are afforded the opportunity for relaxation, at the same time setting forth limitations on the amount of vacation leave that can be "cashed in". Procedure All permanent full time and career part time Seacoast employees may request to receive a portion of his/her earned vacation leave in cash rather than take the time off provided the following conditions are met: 1. An employee must take a minimum of five (5) vacation days each calendar year in the form of time off away from the job. The time off need not be taken consecutively. 2. An employee may request up to a maximum of five (5) days or forty (40) hours of vacation in the form of cash once in any given calendar year. Those employees receiving five weeks vacation a year may request up to a maximum of ten (10) vacation days each calendar year in the form of cash once in any given calendar year. The request must be made in the form of a properly completed time sheet, approved by the supervisor, and submitted with the employee's regular time sheet. 3. Checks will not be issued outside of the regularly scheduled payroll cycle. 4. A second week consisting of five (5) days (40 hours) may be sold in any given payroll calendar year if the employee was eligible for a minimum of 16 hours of sick leave conversion pay. Page 1 of 3 ADMINISTRATIVE PROCEDURE SUBJECT: FAMILY AND MEDICAL LEAVE POLICY PROCEDURE NUMBER: AP/93-25C ORIGINATED DATE August 25, 1993 REVISED DATES: 8/27/97, 1/24/01, 6/22/05 INTRODUCTION The Family and Medical Leave Act (FMLA) of 1993, entitles qualified employees up to a total of twelve (12) weeks of leave paid and/or unpaid (according to Authority policies) per year for the birth or adoption of a child; to care for a spouse, parent, or child with a serious health condition; or for the employee's own serious health condition. ELIGIBILITY AND REASON To be eligible for the Family and Medical Leave (FMLA) entitlement, an employee must meet the following conditions: 1. An employee must have worked for Seacoast Utility Authority for the twelve (12) month period immediately preceding the FMLA. 2. An employee must have worked a minimum of 1,250 hours during the twelve month period immediately preceding the start of leave. a. A week is determined by an employee's regular work week, i.e., a permanent full time employee who has a 5 day work week and 8 hours a day is entitled to 60 days (480 hours) leave in a 12 month period; and a permanent part-time employee who works a 3 day work week and 8 hours a day is entitled to only 36 days (288 hours) leave in a 12 month period. b. For purposes of determining "hours worked", on-call hours of service are considered hours worked; vacation, sick leave, and leave without pay are not counted toward hours worked. c. The method the Authority shall use for determining the 12 month period in which the 12 weeks of leave entitlement occurs shall be a rolling 12 month period measured backward from the date an employee uses any FMLA leave. Each time an employee takes FMLA the remaining leave entitlement would be any balance of the 12 weeks not used during the immediately preceding 12 months. 3. Employees requesting FMLA leave are first required to use their accrued leave (vacation, sick, compensatory time: all according to established policies) for any part of the 12 week mandated period. When paid leave is used up by an employee for FMLA, the Authority is required to provide only enough unpaid leave to total 12 weeks of leave (paid and/or unpaid). Accordingly, during any unpaid portion of FML, accrual of benefits shall be on the same basis as for any other unpaid leave of absence. Page 2 of 3 4. In the event an absence is for a reason covered by the FMLA, the Authority reserves the right to count it as FMLA leave whether the employee has applied for it or not. When this occurs, the employee will be promptly notified as required by law. The FMLA shall run concurrently with, but is not limited to the Florida Worker's Compensation Law (FWCL), the Americans with Disabilities Act (ADA), and/or short and long term disability. 5. When FMLA is used for the birth or adoption of a child, an employee must use any accrued paid sick and vacation time up to the maximum leave allowed within this FMLA Policy. The right to FMLA expires twelve (12) months after the birth or placement with the employee. 6. The FML leave will only be granted for a "serious health condition" which is defined as an illness, injury, impairment, or physical or mental condition that involves either: a. in-patient care (i.e., an overnight stay) in a hospital, hospice, or residential medical care facility, or b. continuing treatment by a health care provider. 7. The serious health condition must be that of the employee or the employee's immediate family (spouse, parent, son or daughter which includes a stepchild, foster child, or legal ward). A maximum of ten (10) days of accrued sick leave may be used for family illness in a calendar year for a family member who is dependent upon the employee for care or to visit an immediate family member who is seriously ill. 8. If both spouses are working for the Authority, their total combined leave in any 12-month period will be limited to twelve (12) weeks if the leave is taken (a) for the birth or adoption of a child or (b) to care for the employee’s sick parent with a serious health condition. EMPLOYEE OBLIGATIONS Certification of the serious health condition and/or the need to care for a sick family member is required from the attending physician. The FMLA leave will not be granted until the Authority receives a medical necessity certification. The Authority reserves the right to require second and third opinions. However, the third opinion would be final and binding. Certification of ability to return to work will also be required by the Authority. 1. During FML, employees must periodically report on their medical status and intent to return to work. At the time leave is taken, the employee will be advised of the reporting requirements. 2. Sufficient certification would include a statement of: a. the date the condition began; b. its probable duration; c. appropriate medical facts; and d. an assertion that the employee is unable to perform his/her job function, or that the employee is needed to care for a sick family member for a specified time. 3. If the FML is foreseeable the employee must provide a 30 day advance notice/certification before the date on which the leave would begin. When unable to provide a 30 day notice, the employee must provide such notice as is feasible. Page 3 of 3 4. If the FML was taken due to the employee’s own serious health condition, before returning to work a present certification from the health care provider stating that the employee is able to resume work is required. During the period of FML (unpaid) leave, the accrual of sick, vacation, and other employment benefits ceases. However, all benefits accrued by the employee up to the time of leave, including the position itself or an equivalent position, are retained. Group health/medical coverage will be continued for the employee at the Authority's expense (less the normal dependent coverage contribution by the employee) for the period of FMLA. If, however, the employee fails to return from leave after the entitlement period expires, the Authority may recover the premiums paid on behalf of that employee. Page 1 of 1 ADMINISTRATIVE PROCEDURE SUBJECT: EMPLOYMENT PROCESS PROCEDURE NUMBER: AP/93-26B ORIGINATED DATE: August 25, 1993 REVISED DATES: 1/26/94, 6/28/06 Introduction When employment vacancies or new positions occur in the Authority, the Department Supervisor will initiate a Personnel Action (PC) form. This form, when approved by the Department Manager, Division Director and Executive Director, will provide authorization for the Personnel Department to recruit, interview, screen and refer applicants to the department for consideration for employment. All individuals seeking employment with the Authority shall complete and sign a standard application form. Those individuals selected for interviewing may also be required to submit a resume. Any material falsification or willful omission of information on the application form or resume will be considered grounds for elimination from further consideration for employment or, if the individual is employed at the time of discovery, for dismissal. In the event that opportunities for advancement arise with the Authority, qualified employees may be considered in preference to non-employees. Employees interested in seeking promotion or lateral transfer will be expected to meet or exceed the qualifications for the position sought and are encouraged to prepare themselves for such opportunities as they arise. Job vacancy notices will be distributed and posted at Authority work locations. If a position is not filled internally, applications on file will be considered before advertising in the local newspapers and when appropriate, in professional or trade journals. Once a selection and job offer is made and accepted, a personnel change form must be prepared and submitted to the appropriate supervisor, department manager, division director and the executive director for approvals. Upon receiving all required levels of approval, the personnel change form must be submitted to the Personnel Department. The personnel department will submit the necessary payroll information to the Finance department. The process of selecting qualified candidates for vacant positions shall be established without regard to race, creed, age, gender, national origin or disability. However, job offers will be made subject to satisfactory completion of drug tests, medical examinations, driver's license checks and criminal background checks. Page 1 of 1 ADMINISTRATIVE PROCEDURE SUBJECT: EMPLOYMENT OF RELATIVES PROCEDURE NUMBER: AP/93-27 ORIGINATED DATE: January 26, 1994 REVISED DATES: Introduction It shall be the policy of Seacoast Utility Authority to regulate the employment of persons related to Authority employees. Application for the employment of relatives of Authority employees must receive prior approval of the Executive Director. This ensures that a relative of an employee is not employed under the line of authority of another relative. For the purposes of this policy, the term "related" shall apply to husband, wife, father, mother, (including step-parents, foster parents, adoptive parents and in-laws), sister, brother, son, daughter, son-in-law, daughter-in-law, sister-in-law, brother-in-law, uncle, aunt, first cousin, nephew or niece. It shall also apply to any other relative or dependent actually living in the same household. Restrictions After the effective date of this policy, no person shall be employed to fill a position vacancy in a department in which a relative is then employed. Employees who marry while both are employed by the Authority may continue to work for the Authority; however, the Executive Director may assign one or both employees to other positions in order to avoid any potential conflict or hardship within a department or the Authority. The new position(s), if reassignment becomes necessary, may or may not be of the same nature or level of pay. Page 1 of 3 ADMINISTRATIVE PROCEDURE SUBJECT: SEWER BACKUP PROCEDURE PROCEDURE NUMBER: AP/96-29A ORIGINATED DATE: JANUARY 24, 1996 REVISED DATES: 6/28/06 INTRODUCTION The purpose of this procedure is to outline the steps to be taken to ensure that sewer backups are promptly and properly addressed. Seacoast Utility Authority (SUA) will assist customers in determining whether a backup is the result of a failure in the SUA system or the customer-owned facilities. For those failures originating in the SUA lines, SUA may correct the problem and/or provide limited compensation for certain personal property damaged by sewage. SUA is equipped to serve its customers 24 hours a day. When there is a problem with a sewage backup, customers are urged to CALL SUA FIRST at 627-2900, Monday - Friday, 9:00 am until 4:00 pm or 627-2929 after regular business hours. The call is dispatched immediately to the sewer service crew. Should the investigation reveal that SUA owned facilities have failed, work must begin immediately to correct the problem. In the event the blockage is in the customer’s line, SUA’s cost may be assessed against the customer SUA shall not bear any responsibility for any loss or damages for backups deemed by SUA to have originated in customer-owned facilities. SUA may assist in initiating remediation, but doing so shall not imply SUA responsibility for any damage or loss. The customer shall be advised to contact their insurance carrier or an outside service company immediately. APPLICABILITY Any SUA sewer service customers reporting a backup of sewage inside a building. PROCEDURE 1. Record customer call on plant log or computer phone log when a backup is reported and assistance requested. 2. Dispatch service personnel to verify cause of backup (customer or company side) and assess damage. 3. If blockage is clearly in customer's line, advise customer to call a service company, i.e., plumber or carpet cleaner. Complete a service order and advise customer verbally and in writing (by service order, Exhibit "A") to contact a service company. If the service company attempts to clear the blockage and indicates the blockage is, in fact, at SUA's connection, SUA must again be contacted for verification. a. When the backup is verified as "customer responsibility" and damages are extensive, advise customer to contact their insurance carrier. Plumber and carpet cleaners can be selected from a local phone book. Page 2 of 3 b. When the backup is verified as blockage in SUA mainline and/or at service line connection and sewage has spilled inside the customer's building, before emergency clean up can be initiated, as customer to sign a statement on the service order acknowledging that s/he understands SUA's assistance in beginning cleanup does not imply that SUA bears any responsibility for any damage or loss. 4. Begin emergency cleanup 1 to 2 hours after backup to minimize damage. Sewage soaked carpet can cause extensive structural damage to baseboards, wallboard, tiles, etc. The odor of raw sewage can also permeate the dwelling and create a need to temporarily relocate the residents; therefore, immediate action to remove sewer saturated carpet and padding, clean, disinfect, deodorized and install blowers to dry out dwelling may be required until an insurance adjuster can investigate and determine liability. 5. Upon verification with customer that they have contacted their insurance agent and filed a claim, SUA will file a "pending" claim with its agent as soon as possible. SUA will require a statement of coverage and damages in order to file and validate the claim with SUA's insurance carrier. SETTLEMENT The customer or SUA's insurance carrier will dispatch an adjuster to process the claim and declare the total dollar figure needed for repairs. If the customer does not have insurance coverage for the backup, the customer will be asked to provide a statement of damages which should include two or three written estimates of repair before a final settlement can be agreed upon. The customer's and/or SUA's insurance carrier and/or SUA will be responsible to obtain a signed, notarized Release prior to any settlement to the customer. Payment under the following "no fault" clause is made directly to SUA to disburse as the authority deems necessary. Staff is authorized to settle claims for up to $3,000 per site, pending final approval from the Executive Director. Claims cannot be settled and/or any payment made without the proper releases being signed and notarized, and evidence that the lowest and best cost for repair/replacement has been obtained. Page 3 of 3 Page 1 of 3 ADMINISTRATIVE PROCEDURE SUBJECT: PART-TIME EMPLOYMENT PROCEDURE NUMBER: AP/96-30C ORIGINATED DATE: JULY 10, 1996 REVISED DATES: 9/27/00, 6/22/05, 6/28/06 INTRODUCTION Seacoast Utility Authority is committed to utilizing its personnel in the most effective and efficient manner possible. In addition to hiring, training, and retaining the most highly skilled individuals for each work assignment, the Authority has implemented management strategies that broaden the range of each employee’s skills and minimize periods of low productivity. For most Authority positions, the flow of work is reasonably consistent or at least predictable. In many cases, the timing and sequence of each employee’s tasks are almost entirely within the employee’s control. Occasionally, due to automation or consolidation, it is possible for an individual to complete their assigned tasks in less than a 40-hour work week. In such instances, the interests of both the employee and the Authority can be served well enough through a part-time employment arrangement. APPLICABILITY This Procedure applies to Seacoast Utility Authority employees who have been scheduled by their supervisors to routinely work more than 20 but less than 40 hours during the normal seven day work week beginning at 12:01 AM Monday and ending at midnight on the next Sunday. Within the context of this procedure, such individuals shall be referred to as "career part-time" employees. Use of the term "career", however, shall not imply that such individuals are assured of continued employment. Note: This procedure does not apply to those temporary part-time personnel hired to meet a specific short term labor demand, generally scheduled to work 20 hours or less per week or 1,000 hours or less per year. The employment terms and wages for such personnel shall be established on a case by case basis by the Executive Director, but such terms will generally provide for an hourly wage only with no benefits or entitlements except as strictly and specifically required by law. All career part-time employment must be approved by the Executive Director. PROCEDURE The Executive Director may approve career part-time employment arrangements as defined herein subject to the following limiting terms and considerations: 1. Career part-time personnel shall be subject to all requirements and restrictions applicable to full- time personnel, including disciplinary guidelines. 2. Career part-time personnel must, upon two weeks notice from their supervisor or the Executive Director, convert to full-time status. Failing to do so may result in termination without further notice. 3. In no case shall a work group’s total worker hours or costs (considering wages, taxes, benefits, and administrative cost) be increased as a result of this policy. Page 2 of 3 4. Career part-time personnel shall work a consistent schedule designated by their immediate supervisor. 5. Career part-time employees shall work in excess of their fixed schedules when deemed necessary by their supervisors. Overtime wages and compensatory time, at one and one half times the normal hourly rate of pay, will not be paid until the career part-time employee works in excess of 40 hours in a given work week. 6. Career part-time employees shall receive the following consideration: a. Hourly wage to be established by the Executive Director in conformance with prevailing pay schedules; b. Sick and vacation leave accrual based on hours worked, calculated against the same annual total as similarly tenured full-time personnel. Accrual limits, vacation pay in lieu of time off, and sick leave donation parameters shall be on the same basis as for full-time personnel; c. Holiday pay only when the holiday falls on the career part-time employee’s regularly scheduled day or if the employee is called into work on that day. Career part-time shift personnel shall be compensated for holiday hours worked on the same basis as full-time personnel, hour for hour worked on the holiday; d. Military, jury duty, and bereavement leave pay pursuant to Authority policy, only for those regularly scheduled work days which are missed; e. The same group health, life, and dental insurance available to full-time personnel, except that part-time personnel shall pay to the Authority an additional administrative fee of $50 (per bi-weekly pay period); f. Pension plan contributions based on the same percentage of gross wages as for full-time personnel, except that benefits associated with plan contributions for any year during which the employee works a total of 1,000 hours or less may not be paid; g. The full Footwear Subsidy granted full-time Seacoast employees in the same job description; h. Full participation in the Safety Pays incentive program; i. Performance evaluations, longevity pay, Productivity Incentive, merit, cost-of-living, and general wage scale adjustments available to full-time personnel, based on a percentage of base wage. Where such payments are made on a lump sum basis, those employees with full-time employee status for more than 50% of the applicable employee year (anniversary date) shall receive a lump sum payment for that year calculated based on a 2080 hour work year. Employees classified as Career Part-time for more than 50% of the applicable employee year shall receive a prorated lump sum payment for that year. The proration shall be based on the part-time work schedule assigned for the greatest portion of the applicable employee year; j. Tuition reimbursement is not available for part-time personnel; k. Career part-time personnel shall be allowed to participate in the credit union, flex plan, the 457 deferred compensation plan, Money Purchase Plan, and Employee Assistance Program; l. Except as noted herein, career part-time employees are not eligible for bonus, incentive, or benefit programs of $500 or greater in potential annual value as calculated by the Executive Director. 7. Full-time employees wishing to convert to career part-time status must obtain the approval of all appropriate supervisory and management personnel, including the Executive Director. Favorable consideration of any such request is neither expressed nor implied by adoption of this administrative procedure. Once such a request is approved, the employee relinquishes all claims and rights to their former full-time position and may only return to full-time status upon the approval of the Executive Director. Page 3 of 3 8. Career part-time personnel, including those who were formerly full-time workers, shall receive no benefit of seniority or tenure with regard to such issues as shift assignments, transfers, promotions, vacation scheduling, etc. Should the employee return to full-time status pursuant to Section 7 above, seniority and tenure benefits as noted herein may be restored subject to approval of the Executive Director. Page 1 of 2 ADMINISTRATIVE PROCEDURE SUBJECT: SICK LEAVE CONVERSION PROCEDURE NUMBER: AP/96-31C ORIGINATED DATE: July 10, 1996 REVISED DATES: 11/28/01, 6/22/05, 6/28/06 INTRODUCTION Seacoast Utility Authority wishes to reward those employees who judiciously use their allotted sick time. In addition to having good attendance reflect positively in their performance evaluations, permanent full-time and career part-time employees shall, subject to the availability of funds, be offered a limited opportunity to receive pay in exchange for accrued sick leave hours. APPLICABILITY Sick Leave Conversion pay, which may also be referred to as Wellness Pay, shall be calculated on a payroll calendar year basis. Only those permanent full-time and career part time employees who have been employed on that basis for the entire payroll calendar year shall be eligible. A payroll calendar year is defined as the January to December W-2 reporting period. Since the payroll calendar year may change annually, questions about what constitutes a payroll calendar year should be directed to Finance. PROCEDURE Eligibility: All permanent full-time and career part-time Seacoast employees having completed one full payroll calendar year in that status shall be eligible for Sick Leave Conversion pay according to the percentage of annual hours worked, subject to the terms of this policy. Annual Sick Leave Conversion Allotments: Each payroll calendar year you may elect to convert a portion of the sick leave you earn in that payroll calendar year and do not use. You may accrue up to ten (10) sick days annually, up to five (5) of those are eligible for conversion, and the remaining five (5) days must remain in your sick leave account. For example, if you use one (1) of your 10 days sick days, then you have a balance of nine (9) remaining sick days. You may convert up to four (4) of the nine (9) remaining sick days to four (4) days pay. You do not have to convert the time annually, but the employee sick leave maximum accrual is 520 hours. The Finance Department will notify eligible employees within 30 days after the end of the payroll calendar year. Unless the employee expressly requests pay in lieu of accrual in the manner and within the time established by the Finance Department, no payment will be made to the employee. At the time of payment the employee’s sick leave balance will be adjusted for the days converted/sold and a new sick leave balance will be calculated. This will be done only one time per year in the month of January. Sick Leave Conversion Upon Termination: Eligible employees that retire and/or resign their position with at least two-week written notice may receive pay for a portion of their accrued sick leave balance. However, an employee terminated for misconduct or cause shall not be entitled to receive accumulated sick leave pay. Upon resignation, retirement or death, the employee shall be paid for the unused eligible portion of accrued leave. The amount of the payment is a percentage based on whole completed years of service as follows: Page 2 of 2 Percentages of Pay Out Completed Years of Employment for Sick Leave Balance Five (5) through nine (9) years 25 percent Ten (10) through nineteen (19) years 40 percent Twenty (20) or more years 50 percent For example, an employee with twenty (20) whole years of completed service and a sick leave balance of 520 hours would be reimbursed an amount equal to 260 hours at their current rate of pay. In addition, eligible employees taking less than or equal to sixteen (16) hours of sick leave pay during the payroll calendar year may elect to receive up to forty hours of pay in lieu of vacation leave in excess of the amount available under Administrative Procedure No. 92-24C. Page 1 of 1 ADMINISTRATIVE PROCEDURE SUBJECT: USE OF AUTHORITY VEHICLES AND EQUIPMENT PROCEDURE NUMBER: AP/96-32A ORIGINATED DATE: NOVEMBER 21, 1996 REVISED DATES: 6/28/06 INTRODUCTION To assure that Seacoast Utility Authority’s assets are used in a manner which directly benefits its customers, the Authority must clearly articulate limitations. Respecting the judgment of its personnel, however, the Authority does not wish to unreasonably limit an individual’s ability to respond to deal with emergencies, nor to institutionalize inefficiency. APPLICABILITY All Seacoast Utility Authority full-time and career part-time personnel. POLICY STATEMENT Seacoast Utility Authority vehicles and equipment are to be occupied only by on-duty or on-call Authority employees and used strictly for Authority business. VARIANCES Variances may be granted by the Executive Director or his designee based on temporary hardship, but approval of such hardships should never be assumed. Except in cases where there is imminent threat of personal harm, prior approval must be obtained from the highest ranking Authority manager or supervisor who can be contacted before any vehicle is used for other than Authority business. To the extent reasonable, all such use must be approved by the Executive Director, even if the request is made outside normal business hours. If the Executive Director is not available, the petitioner should work progressively through division directors, department managers, and supervisors. Transporting non-Authority employees without management approval is prohibited. BREAKS, LUNCH STOPS This policy is not intended to prohibit on-duty Authority personnel from stopping by a store or restaurant during break periods established by their supervisors. No alcoholic beverages or illegal substances may be consumed or purchased during such stops, nor may such items be stored or transported in any Authority owned vehicle. ON CALL Supervisors of certain “”on call” personnel (as defined in the Seacoast Utility Authority Employee Handbook) may authorize such personnel to take an Authority vehicle home. If this occurs, the vehicle is to be used only for Authority business, and for transportation between the employee’s Authority work assignment and home. The vehicle use limitations and variance procedure outlined herein applies under these circumstances as well. Violation of this procedure may result in suspension or dismissal. Page 1 of 3 ADMINISTRATIVE PROCEDURE SUBJECT: EMPLOYEE GRIEVANCE PROCEDURE PROCEDURE NUMBER: AP/96-33A ORIGINATED DATE: NOVEMBER 21, 1996 REVISED DATES: 6/28/06 INTRODUCTION This Administrative Procedure is designed to ensure a complete and fair hearing for any Seacoast Utility Authority full-time or permanent part-time employee’s grievance. A Grievance Appeals Board is hereby created to hear and make recommendations to the Executive Director concerning disciplinary action. APPLICABILITY This procedure applies only to Seacoast Utility Authority full-time and career part-time personnel. Only disciplinary actions taken by supervisory personnel may be reviewed hereunder. Performance evaluations, pay, and personnel policies are not subject to this Administrative Procedure. GRIEVANCE PROCEDURES A. Procedure - First Step 1. The employee shall, within seven (7) working days of an alleged grievance, request in writing an appointment with his/her department manager to discuss the grievance. 2. Such appointment and the hearing of the employee’s presentation shall be within five (5) working days of the day of the request. 3. The employee shall be advised in writing of the department manager’s decision in the matter within five (5) working days of the date of the hearing, a copy of such written decision to be placed in his/her personnel file. B. Procedure - Second Step 1. If the matter is not resolved to the satisfaction of the employee by the department manager, the employee shall, within five (5) working days after the decision has been delivered to the employee, so notify the department manager in writing. The department manager shall within three (3) working days, refer the matter to the Executive Director or his designee. 2. The Executive Director or his designee shall, within five (5) working days of the request, hold an informal meeting with the employee, supervisor(s), and department manager(s) involved. The results shall be declared in writing to the employee within five (5) working days of the informal meeting. Page 2 of 3 3. If the meeting with the Executive Director fails to resolve the matter to the satisfaction of the employee, the employee may, within ten (10) working days of that meeting, so notify the Executive Director and request a hearing by the Grievance Appeals Board. C. Procedure - Grievance Appeals Board Hearing The Executive Director or his designee shall, within ten (10) working days of receipt of the employee’s notice under B.3 above, establish a meeting of the Grievance Appeals Board for the purpose of hearing the employee’s grievance. D. Final Disposition The findings of the Grievance Appeals Board shall be final and binding. The Authority Clerk shall distribute written notice of the Grievance Appeals Board’s decision to the employee, his/her supervisor, and the Executive Director within fifteen (15) working days of the meeting during which the decision was rendered. SEACOAST UTILITY AUTHORITY GRIEVANCE APPEALS BOARD COMPOSITION OF SUA GRIEVANCE APPEALS BOARD The Seacoast Utility Authority Grievance Appeals Board shall consist of one Authority Board member (appointed by the Board), two Authority managers or supervisors appointed by the Executive Director, and two non-supervisory employees elected at large by non-supervisory full time and permanent part-time employees. Two alternate non-supervisory representatives shall be elected as well. ELECTION OF NON-SUPERVISORY REPRESENTATIVES The first election of non-supervisory representatives and alternates shall take place no later than January 10, 1997. This election and all subsequent elections shall be secret ballots organized and conducted by the Authority’s Personnel Specialist. For the initial election of non-supervisory representatives, the individual receiving the greatest number of votes shall be elected to a two year term, the second greatest number of votes shall determine the second non-supervisory representative who will serve a one year initial term, the third and fourth greatest number of votes shall determine the alternates. In subsequent elections, the individual receiving the greatest number of votes shall be elected the non-supervisory representative, and the individuals receiving the second and third greatest number of votes shall be elected the alternates. Should an insufficient number of non-supervisory employees volunteer for election to the Grievance Appeals Board, the Executive Director may appoint qualifying personnel to fill the non-supervisory positions. Only those full-time and career part-time employees who have successfully completed their initial probationary periods are eligible to serve as non-supervisory representatives or alternates. TERM OF SERVICE The Authority Board representative shall serve at the pleasure of the Authority Board and may be removed only by action of the Authority Board, death or disability, resignation from the Grievance Appeals Board, or separation from the Seacoast Utility Authority Board. The Executive Director’s appointees shall serve until replaced by the Executive Director and may be removed by affirmative action of the Seacoast Utility Authority Board, death or disability, or separation from Seacoast Utility Authority employment. The Seacoast Utility Authority Board may remove the Executive Director’s appointees for failure to meet Authority standards of conduct. Page 3 of 3 Except for the initial election as described herein, non-supervisory representatives shall be elected for two- year terms and alternates to one-year terms. Following the initial election, one non-supervisory representative and two alternates shall be elected each year. Such representatives and alternates may be reelected without limitation, provided that they remain full or career part-time Authority employees. Non- supervisory representatives may be removed from the Grievance Appeals Board by death or disability, failure to participate in Appeals Board activities, or separation from Authority employment. The Seacoast Utility Authority Board may remove non-supervisory representatives for failure to meet Authority standards of conduct. An alternate may serve whenever an elected member is unable to serve, for any reason. The first alternate to serve shall be the one who received the greater number of votes in the most recent election. MEETINGS OF THE SUA GRIEVANCE APPEALS BOARD The Seacoast Utility Authority Board representative shall serve as Grievance Appeals Board Chair. The Chair shall have broad latitude in the conduct of meetings, but the format will generally be as follows: 1. Call to Order 2. Summary of Issues by Employee (not more than 20 minutes) 3. Summary of Issues by Management (not more than 20 minutes) 4. Rebuttal by Employee (not more than 5 minutes) 5. Rebuttal by Management (not more than 5 minutes) 6. Questions from Grievance Appeals Board 7. Deliberations and Conclusion by Grievance Appeals Board PROCEDURAL STIPULATIONS 1. Both the employee and management may present supporting documents and testimony, but neither shall have subpoena authority. 2. The employee may be represented by an attorney at the Grievance Appeals Board meeting, and Authority management may be represented by Seacoast Utility Authority counsel. 3. There shall be no action taken unless a quorum, consisting of the Chair, and at minimum one management and one non-supervisory representative, is present. 4. Affirmative action by the Grievance Appeals Board shall require a majority (in excess of 50%) vote of the Appeals Board members in attendance. 5. If no motion is offered, if a motion receives no second, or if there is a tie vote, the disciplinary action taken by management will stand. 6. The Authority Clerk will attend, record, prepare and distribute minutes of the meeting. Written minutes will be distributed to the employee, supervisors, the Executive Director, and the employee’s personnel file within fifteen (15) days of each Grievance Appeals Board meeting. Page 4 of 4 PROCEDURAL STIPULATIONS 1. Both the employee and management may present supporting documents and testimony, but neither shall have subpoena authority. 2. The employee may be represented by an attorney at the Grievance Appeals Board meeting, and Authority management may be represented by Seacoast Utility Authority counsel. 3. There shall be no action taken unless a quorum, consisting of the Chair, and at minimum one management and one non-supervisory representative, is present. 4. Affirmative action by the Grievance Appeals Board shall require a majority (in excess of 50%) vote of the Appeals Board members in attendance. 5. If no motion is offered, if a motion receives no second, or if there is a tie vote, the disciplinary action taken by management will stand. 6. The Authority Clerk will attend, record, prepare and distribute minutes of the meeting. Written minutes will be distributed to the employee, supervisors, the Executive Director, and the employee’s personnel file within fifteen (15) days of each Grievance Appeals Board meeting. Page 1 of 1 ADMINISTRATIVE PROCEDURE SUBJECT: SAFETY FOOTWEAR SUBSIDY PROCEDURE NUMBER: AP/98-34A ORIGINATED DATE: OCTOBER 22, 1998 REVISED DATES: 6/28/06 INTRODUCTION Workplace safety is among Seacoast Utility Authority’s highest priorities. Accordingly, many Seacoast job descriptions include safety footwear requirements. Since the employee is required to purchase and maintain conforming footwear, this requirement can exert an extraordinary economic burden on affected personnel. To assist with related costs and thereby further the goal of full compliance, Seacoast offers its qualifying employees an annual footwear subsidy. This subsidy is subject to the availability of budgeted funds. APPLICABILITY To be eligible for Seacoast's annual footwear subsidy, an employee must meet all of the following criteria: 1. Must be a full-time or career part-time Seacoast Utility Authority employee; 2. Must have been continuously employed by Seacoast for the full year ending on the November 1 immediately preceding the footwear subsidy disbursement date; and 3. Must be working in a position for which the job description includes specific safety footwear requirements. PROCEDURE Subject to budgetary constraints, Seacoast will issue a safety footwear subsidy to each qualifying employee between November 1 and December 15 of each year. The Finance Department Manager shall determine the specific date of each year's distribution. Career part-time employees shall receive a subsidy based on hours worked in an eligible position during the previous twelve-month period. For any year in which an employee receives a verbal warning for non-conforming footwear, that employee's subsidy will be reduced by 50%. No subsidy will be paid for the year in which an employee receives a written reprimand for non- conforming footwear. Page 1 of 1 ADMINISTRATIVE PROCEDURE SUBJECT: COMPENSATORY TIME PROCEDURE NUMBER: AP/00-35D ORIGINATED DATE: JANUARY 26, 2000 REVISED DATES: 1/24/01, 6/26/02, 6/22/05, 6/28/06 INTRODUCTION To ensure that Seacoast’s work is completed in a timely and efficient manner, employees are occasionally required to work outside their regularly scheduled shifts. When this occurs, the non- exempt (hourly) employee may elect to forego wages for such hours worked, agreeing instead to take commensurate scheduled work time off at an unspecified later date. Subject to prevailing law, this policy will govern the use of such “Compensatory Time”. This policy shall not apply to “flex” time as described in Seacoast’s Employee Handbook. APPLICABILITY This policy shall apply to all permanent full-time and career part-time non-exempt (hourly) and exempt (salaried) employees of Seacoast Utility Authority, except Division Directors, the Finance Manager and the Executive Director, unless otherwise approved by the Executive Director. POLICY STATEMENT Compensatory Time shall: 1. for non-exempt employees, be accrued at one and one-half hours for all hours worked over 40 hours in a work week (such 40 hours worked shall include vacation, sick, Compensatory Time taken, holidays, bereavement, jury duty, and military leave taken during that work week), or at one hour for each hour worked if the employee has less than 40 hours worked during that week; 2. for exempt employees, be accrued at one hour for each hour worked over 40 hours in a work week (such 40 hours worked shall include vacation, sick, Compensatory Time taken, holidays, bereavement, jury duty, and military leave taken during that work week); 3. be rounded to the nearest quarter hour; 4. be accrued only with the approval of both the worker and the supervisor; 5. be taken only with the prior approval of the employee’s supervisor; 6. be accrued to a maximum Accrual Balance (total unused Compensatory Time calculated according to sections 1 and 2 above) of 60 hours. 7. be paid in wages to the employee only upon termination of employment. Employees may not “cash in” or exchange accrued compensatory time for pay. Page 1 of 2 ADMINISTRATIVE PROCEDURE SUBJECT: HARASSMENT/DISCRIMINATION PROCEDURE NUMBER: AP/00-36 ORIGINATED DATE: FEBRUARY 23, 2000 REVISED DATES: INTRODUCTION It is the policy of Seacoast Utility Authority to maintain a work environment free of harassment and discrimination of any kind, including, but not limited to, harassment/discrimination on the basis of color, race, sex, age, religion, disability, marital status or national origin. I. Definition of Sexual Harassment A. Unwelcome sexual advances, requests for sexual favors and other such verbal or physical conduct constitute sexual harassment under the following conditions: 1. Submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment. 2. Submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual. 3. Such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile or offensive work environment. B. Conduct which falls into the definition of sexual harassment may include, but is not limited to: 1. Unwelcome physical contact of a sexual nature such as patting, pinching or unnecessary touching. 2. Overt or implied threats against an individual to induce him or her to perform sexual favors or to engage in an unwelcome sexual relationship. 3. Verbal harassment or abuse of a sexual nature, including intimating by way of suggestion a desire for sexual relations or making jokes or remarks of a sexual nature to or in front of a person who finds them offensive. 4. Use of sexually suggestive terms or gestures to describe a person’s body, clothing or sexual activities. 5. Displaying or posting offensive sexually suggestive pictures or materials in the workplace. II. Procedure for Reporting Employees seeking to report any form of harassment must report the matter to either the Department Manager, the Director of Administrative Services, or the Executive Director as soon as practicable. III. Remedial Action Will Be Taken By Seacoast Page 2 of 2 All such issues will be handled in strict confidence to the extent possible with minimum embarrassment to the involved parties. A prompt, thorough and impartial investigation will be conducted. The facts of the situation will be reviewed objectively. Seacoast will take immediate and appropriate corrective action, including discharge, if it determines that harassment has occurred. A timely resolution of each complaint is to be reached and communicated to the parties involved. IV. Retaliation Is Prohibited Retaliation against any employee for filing a complaint or participating in an investigation is strictly prohibited. Seacoast Utility Authority will protect employees who make complaints of harassment/discrimination or provide information related to such complaints against retaliation. In the event an employee files a frivolous, malicious or intentionally false claim, appropriate sanctions for discipline of the complainant, including termination, may result. Please retain this Harassment/Discrimination policy with your Employee Handbook until modifications to the handbook are distributed. Page 1 of 2 ADMINISTRATIVE PROCEDURE SUBJECT: INTERNET ACCESS, E-MAIL, COMPUTER AND VOICE MAIL USE PROCEDURE NUMBER: AP/00-37A ORIGINATED DATE: MAY 24, 2000 REVISED DATES: April 19, 2005 INTRODUCTION Seacoast Utility Authority requires that its information and communication systems be used in a manner consistent with Seacoast’s public purpose. This policy shall govern the use of Seacoast’s computer, telephone (voice mail), Internet access, and electronic mail (e-mail) systems. APPLICABILITY This policy shall apply to all full-time and part-time (temporary and permanent) employees of Seacoast Utility Authority, contract personnel, consultants and all others using Seacoast’s telephone or computer equipment or software. POLICY A. Computers No individual shall install or otherwise use any computer games, hardware, programs or software which is not licensed and registered under Seacoast's name, or install or otherwise use any such items unless they have been approved in advance, in writing, by the Executive Director. Seacoast will take disciplinary action and/or assist in the prosecution of any individual who downloads, installs or uses software that is improperly registered. B. World Wide Web (WWW) or Internet Access During business hours, WWW or Internet access use should be limited to business related to Seacoast. Accessing sites or downloading files including but not limited to video, audio, and stream media (for example, live radio). Any objectionable material which promotes a hostile work environment will not be tolerated and will lead to disciplinary action. Department Managers shall determine which computers and personnel will have Internet access, subject to the Executive Director’s approval. C. Electronic Mail (e-mail) Public Record Requirements E-mail messages that are business related or of a non-transitory nature are public records and may not be deleted by employees. They must be maintained in accordance with the State of Florida’s Public Records Law. A non-transitory message is one that is intended to perpetuate, communicate, or formalize information relating to Authority policies, functions, transactions, and decisions. These messages should be printed and placed in correspondence or other office files so that they may be made part of the existing records handling and retention process. The informal tone of transitory messages might be compared to the communication that takes Page 1 of 2 ADMINISTRATIVE PROCEDURE SUBJECT: EMPLOYEE TUITION REIMBURSEMENT PROGRAM PROCEDURE NUMBER: AP/00-38A ORIGINATED DATE: SEPTEMBER 27, 2000 REVISED DATES: 6/28/06 PURPOSE Seacoast encourages its employees to seek ever-increasing levels of academic achievement. Supporting that goal, Seacoast offers the following Employee Tuition Reimbursement Program. APPLICABILITY Subject to the terms and limitations established by this administrative procedure, Seacoast will reimburse an eligible employee’s approved tuition cost for college, university, vocational, technical or correspondence courses. Such courses must be deemed by the Executive Director to be of benefit to Seacoast. A. Eligibility To be eligible for tuition reimbursement, Seacoast employees must; 1. have full-time, permanent, active, and non-probationary employee status prior to beginning the course, and 2. have completed four months of continuous Seacoast employment prior to beginning the course, and 3. receive course and program approval of the employee’s department manager, and 4. provide evidence of a passing grade (“pass” in a “pass-fail” grading system, or letter grade of A, B, C, or D in a letter grade system) or otherwise demonstrate successful completion in a manner satisfactory to the Executive Director. B. Covered Expenses This administrative procedure authorizes reimbursement of tuition expense only. No books, materials, supplies, travel, meals, or other expense(s) reimbursement shall be made hereunder. (REF: Business Expense Reimbursement Procedure, AP/89-01A for details) POLICY AND PROCEDURE A. Application for Tuition Reimbursement Employees requesting tuition reimbursement under this administrative procedure should complete the attached application. This application should be submitted to the appropriate department manager. The department manager will process the application. If there are any questions concerning the application, the department manager can consult with the Executive Director. After approved, the application is forwarded to the Finance Department to determine if current funding is available or include the request for Page 2 of 2 future funding, as appropriate. Tuition reimbursement approval will be subject to funding availability. B. Maximum Reimbursement No qualifying Seacoast employee shall be reimbursed more than $1,800 per fiscal year for undergraduate courses and $2,200 for graduate level courses. C. Request for Reimbursement Proof of passing grade and registration will be required before reimbursement can be issued. D. Textbooks and Supplies Seacoast will not reimburse any costs associated with textbooks, supplies, or any other related cost. E. Employee Separation If an individual’s Seacoast employment is terminated - by the employee, by Seacoast, or by mutual agreement - Seacoast will deduct the full cost of all Seacoast funded reimbursements for the previous one-year period from the employee’s final payroll check. SEE FILE “TUITION REIBURSEMENT APPLICATION.XLS” Page 2 of 2 place during a telephone conversation or a conversation in an office hallway which include, but are not limited to e-mail messages with short lived, or no administrative value, voice mail, self sticking notes, and telephone messages. Transitory messages are to be retained until obsolete, superseded or administrative value is lost. D. Voice Mail Seacoast utilizes a voice mail system, which allows employees, customers and others to leave voice messages. Seacoast reserves the right to monitor and review all messages left on the voice mail system at any time. E. Right to Inspect Although Seacoast does not regularly monitor voice mail or electronic messages, Seacoast reserves the right to do so without notice to the employee. No employee is to have an expectation of privacy with regard to any voice mail messages, e-mail or computer files. The Information Technology (IT) Department must approve any forwarded informational non-work related emails that are intended for company wide (Allusers) distribution. Many of these messages are false urban legends. Such emails require verification for validity. The IT Department has the ability to confirm accuracy. F. Unacceptable Activities E-mail communication and internet access are PUBLIC RECORDS and the use of Seacoast’s electronic mail and other information systems in any way that may be disruptive, offensive to others, or harmful to morale is prohibited. It is against Seacoast policy to display or transmit sexually explicit images, messages or cartoons. Therefore, any such transmissions or use of e-mail communications that contain ethnic slurs, racial epithets, or anything that may be construed as harassment or offensive to others based on their race, national origin, sex, sexual orientation, age, disability, religious or political beliefs, is strictly prohibited and may constitute grounds for termination. Seacoast’s e-mail system also may not be used to solicit others for commercial ventures, religious or political causes, outside organizations, or other personal matters unrelated to Seacoast business. Failure to follow the Seacoast policy set forth above may lead to disciplinary action up to and including termination. Please retain this policy with your Employee Handbook until modifications to the handbook are distributed. Page 1 of 1 ADMINISTRATIVE PROCEDURE SUBJECT: DONATED SICK LEAVE POLICY PROCEDURE NUMBER: AP/00-39C ORIGINATED DATE: DECEMBER 20, 2000 REVISED DATES: 6/22/05, 4/26/06, 6/28/06 INTRODUCTION Although the judicious use of sick leave is encouraged, it is understood that events can and do occur which require extended time off for recuperation from illness or injury as outlined in the Family Medical Leave policy (AP/93-25). Serious medical conditions and surgery, for example, may require time off that exceeds the amount of limited leave accrued by the employee. Therefore, in order to minimize a potential financial burden, the Authority provides a means for employee donations of “vacation leave” to another in need. POLICY Accrued “vacation leave” may be transferred from a donor employee and converted to sick leave for a recipient employee if all of the following conditions are met: 1. The receiving employee must exhaust all accrued sick and vacation leave prior to receiving donated time. 2. The donor employee must consent to the donation in writing. 3. The donor employee may not donate more than a total of 40 hours in any 12 month period. 4. The recipient employee must be a permanent full time or career part time Authority employee. 5. The recipient employee must be on leave pursuant to the federal Family Medical Leave Act of 1993 as stated in the Family and Medical Leave policy (AP/93-25C), or short/long term disability (AP/90-15B). 6. The recipient employee must not have any documented disciplinary action in his/her personnel file relating to abuse of sick or vacation leave. The total of all donations to any one employee may not exceed 30 days (240 hours) in any 12 month period. All donated sick leave converted from “vacation leave” hours shall be compensated at the recipient’s hourly rate. Page 1 of 4 ADMINISTRATIVE PROCEDURE SUBJECT: INVESTMENT POLICY – MONEY PURCHASE PLAN PROCEDURE NUMBER: AP/05-40 ORIGINATED DATE: SEPTEMBER 28, 2005 REVISED DATES: Overview The Seacoast Utility Authority Money Purchase Plan (Plan) is a retirement plan established by Seacoast Utility Authority (Sponsor) for the benefit of participating employees and their beneficiaries. The Plan Sponsor contributes 8% of total employee compensation (excluding shoe allowance, auto allowance, life insurance premium mark-up and holiday gift certificates) for all eligible participants. All assets are invested with Nationwide Financial. Participants are responsible for directing the investment of their individual assets. The responsibility for the amount of retirement benefits belongs, in part, to each participant. Participants are responsible for allocating their assets among the investment alternatives offered by the Plan, for deciding whether to use the Plan’s loan provisions and for determining how and when to withdrawal benefits. The ultimate authority to establish the investment structure of the Plan and to amend this Investment Policy lies with Governing Board of Seacoast Utility Authority. The Board appoints two Trustees who act in the capacity of Plan Fiduciaries and who are responsible for selecting and reviewing the investment alternatives. Purpose The purpose of this Investment Policy is establish the investment structure for the Plan and to adopt a set of guidelines for the selection of the Plan’s investment alternatives and for the periodic evaluation and monitoring of the investment alternatives. The Plan fiduciaries are obligated to: • Prudently select investment alternatives • Periodically monitor and evaluate those alternatives • Remove poor performing alternatives and add replacement alternatives based on results of these periodic evaluations Investment Structure The investment structure of the Plan allows participants to create investment portfolios by allocating their assets among a group of prudently selected and monitored mutual fund investment alternatives that, together, constitute a broad range of mutual fund strategies, or peer groups. Some examples of peer groups are large-cap U.S equities, mid/small-cap equities, global equities, etc. The structure includes mutual funds which will enable participants to direct the investment of their assets into a single diversified account designed to be consistent with each participant’s own individual time horizons and risk tolerances. In the process of selecting the mutual funds to be used as the Plan’s investment alternatives, the Plan Fiduciaries have established peer groups intended to satisfy the broad range requirement (mutual funds that target domestic large, small and mid-cap equities, international equities as well Page 2 of 4 as stable value investments such as guaranteed investment contracts). The Plan Fiduciaries will select one or more mutual funds to represent each of those peer groups and offer those mutual funds as investment alternatives. The Plan Fiduciaries may also decide to offer mutual funds alternatives in addition to those necessary to meet the broad range requirement. These alternatives may include, but are not limited to, mutual funds that target a specific sector or sectors, country or region, or whose managers take greater than normal risk. These mutual funds may be added as alternatives to provide additional investment options and to accommodate participant interest. In selecting mutual funds to offer as investment alternatives, the Plan Fiduciaries will consider factors such as • The nature of the participant workforce • Investment education • Communication and education programs • Needs and preferences of participating employees Asset Allocation Mutual Funds The purpose of asset allocation mutual funds is to provide participants with investment alternatives professionally designed to take into account risk tolerances and investment time horizons. Additionally, these mutual funds are automatically re-balanced periodically to maintain their strategic asset allocation. The Plan will provide participants with five types of asset allocation mutual funds alternatives: • High Risk – mutual funds that seek to maximize total investment return through growth of capital • Moderate Risk – mutual funds that seek to maximize total investment return primarily through growth of capital but also through income • Low Risk – mutual funds that seek to maximize total investment return through growth of capital and income • Very Low Risk – mutual funds that seek to maximize total investment return through income and, secondarily, through long-term growth of capital • Money Market – represents investments that generally do not fluctuate and bear very little risk; investments that are essentially cash equivalents • Guaranteed Fixed – provides a low fixed rate of return for those who have no tolerance for market risk Performance Standards The Plan Fiduciaries will engage in a process to prudently select, regularly monitor and, where appropriate, remove asset allocation mutual funds as Plan alternatives. The mutual funds will be chosen from among a large selection of investment alternatives so that there is reasonable assurance that an adequate number of funds have been reviewed and are representative of superior investment alternatives available to the Plan. If a mutual fund is removed as an investment alternative in the Plan, it will be replaced by a similar mutual fund if another, better performing mutual fund is available in the same peer group. However, if after evaluating replacement options, the Plan Fiduciaries determine there is not suitable replacement available, the removed mutual fund may not be replaced. Selection of Funds In order to select a new or replacement asset allocation mutual fund, the Plan Fiduciaries will evaluate a reasonable selection of mutual funds offered by Nationwide Financial using the guidelines set forth in the Evaluation Guidelines section of the Investment Policy. Page 3 of 4 Evaluation Guidelines Evaluation Criteria The Plan Fiduciaries will screen mutual funds made available by Nationwide Financial and choose at least one mutual fund as an investment alternative from each peer group based on the following evaluation guidelines: 1. Operating expenses – the expense ratio of the funds will be evaluated to consider the reasonableness and effect of the costs, with preference being given to low-cost funds unless the additional costs can be justified by other factors. 2. Sharpe Ratio – the investment performance of the funds, relative to the risk taken by the managers, will be evaluated. 3. Trailing performance – the investment performance of the funds will be evaluated using weighted trailing annualized total returns. 4. Rolling information ratio – the consistency of risk-adjusted investment performance of the funds, relative to their benchmarks, will be evaluated. 5. Rolling Performance Consistency – the total returns of the funds will be evaluated using rolling periods to minimize the end period dominance of recent performance history and to provide more comprehensive performance date to evaluate. Fund Warning Signs As a secondary screening process in selecting the mutual fund alternatives, the Plan Fiduciaries will also evaluate certain factors called “warning signs”. Warning signs could be an indication of a mutual fund’s inability to consistently outperform its peers in the future. Some of the warning signs that will be periodically evaluated are: 1. High operating expenses 2. High individual holding concentration 3. High economic sector concentration 4. High performance volatility 5. High portfolio turnover 6. Low manager tenure 7. Low asset base Nationwide Financial’s Mutual Fund Rating System Nationwide Financial has developed a rating system that allows the Plan Fiduciaries to determine how each mutual fund is performing compared to others in the same peer group. This rating system takes into account long term financial performance, fund expenses, fund manager experience and other technical analysis criteria. This rating system helps the Plan Fiduciaries determine which mutual funds, if any, should be removed from the available alternatives and which mutual funds from the same peer group should be replacement alternatives. This rating system is a comprehensive technical evaluation performed by investment specialists at Nationwide Financial and provided to the Plan Fiduciaries and will also be used in evaluating which mutual funds should be made available to Plan participants. Investment of Accounts Without Participant Direction In the event a participant fails to provide the Plan with investment direction, Nationwide Financial will be directed to invest the participant’s funds in the fixed rate investment alternative until such time as the participant provides investment direction. Page 4 of 4 Monitoring of Investment Alternatives The Plan fiduciaries shall meet at least quarterly to monitor and evaluate the specific investment alternatives to determine if they continue to be suitable and appropriate for the Plan and the participants. If a mutual fund is a poor performer under the evaluation guidelines for more than four (4) consecutive quarters, the fund will be considered for removal as an investment alternative from the Plan. If a mutual fund is removed as an alternative for future contributions, all funds currently invested in the fund will be automatically transferred to the replacement alternative within the same peer group as of a specified transfer date. If a new replacement mutual fund is not added, funds will be transferred into another available alternative in the same peer group. Participants will be notified of the transfer date in advance and have the option to transfer monies to the fund of their choosing prior to that transfer date. Page 1 of 3 ADMINISTRATIVE PROCEDURE SUBJECT: LOAN POLICY – MONEY PURCHASE PLAN PROCEDURE NUMBER: AP/05-41 ORIGINATED DATE: SEPTEMBER 28, 2005 REVISED DATES: The Seacoast Utility Authority Money Purchase Plan (the “Plan”) permits loans to be made to Participants and their beneficiaries. However, before any loan is made, the Plan requires that a written loan program be established which sets forth the rules and guidelines for making Participant loans. This document shall serve as the required written loan program. In addition, The Plan Administrator may use this document to serve as, or supplement, any required notice of the loan program to Participants and their beneficiaries. All references to Participants in this loan program shall include Participants and their beneficiaries or alternate payee with respect to the Plan who are “parties in interest” as defined by ERISA Section 3(14). The Plan Administrator is authorized to administer the Participant loan program. All applications for loans shall be made by a Participant to the Plan Administrator on forms that the Plan Administrator will make available for such purpose. Effective January 1, 2006, the $30.00 Annual Loan Maintenance fee will be paid by the Participant. The Participant is also responsible for payment of the initial $75.00 Loan Processing fee. 1. LOAN APPLICATION. Any Plan Participant may apply for a loan from the Plan. A Participant must apply for each loan in writing with an application that specifies the amount of loan desired, the requested duration for the loan, and the source of security for the loan. The Plan Administrator will consider all loan applications within a reasonable time after the Participant makes formal application. 2. LOAN LIMITATIONS. The Plan Administrator will not approve any loan to a Participant in an amount that exceeds 50% of his or her non-forfeitable account balance. The maximum aggregate dollar amount of loans outstanding to any Participant may not exceed $50,000.00, reduced by the excess of the Participant’s highest outstanding Participant loan balance during the 12-month period ending on the date of the loan over the Participant’s current outstanding Participant loan balance on the date of the loan. • No loan in an amount less than $1,000.00 will be granted to any Participant. • A Participant can only have one loan currently outstanding from the Plan. However, a Participant may renegotiate a loan without violating the one outstanding loan requirement provided such renegotiated loan is a new loan. • All loans made pursuant to this program will be considered a directed investment from the account(s) of the Participant maintained under the Plan. As such, all payments of principal and interest made by the Participant will be credited only to the account(s) of such Participant. The Plan will also charge that portion of the Participant’s account balances with expenses directly related to the origination, maintenance, and collection of the note. Page 2 of 3 • Loans may be made from all of a Participant’s accounts. 3. EVIDENCE AND TERMS OF LOAN. The Plan Administrator will document every loan in the form of a promissory note signed by the Participant for the face amount of the loan, together with a commercially reasonable rate of interest. Any loan granted or renewed under this program will bear a reasonable rate of interest. In determining such rate of interest, the Plan will require a rate of return commensurate with the prevailing interest rate charged on similar commercial loans under like circumstances by persons in the business of lending money. Such prevailing interest rate standard will permit the Plan Administrator to consider factors pertaining to the opportunity for gain and risk of loss that a professional lender would consider on a similar arms-length transaction, such as the creditworthiness of the Participant and the security given for the loan. Therefore, in establishing the rate of interest, the Plan Administrator will conduct a reasonable and prudent inquiry with professional lenders in the same geographic locale where the Participant and Seacoast Utility Authority reside to determine such prevailing interest rate for loans under like circumstances. The loan must provide at least quarterly payments under a level amortization schedule. If the Participant is currently employed by Seacoast Utility Authority, the Plan Administrator will require the Participant receiving a loan from the Plan to enter into a payroll deduction agreement to repay the loan. If the Participant is not currently employed by the Employer, the Plan Administrator may require additional collateral for the loan. The Plan Administrator will fix the term for repayment of any loan; however, in no instance may the term of repayment be greater than five years, unless the loan qualifies as a home loan. A “home loan” is a loan used to acquire a dwelling unit that, within a reasonable time, the Participant will use as a principal residence. Unless the Participant is a “party in interest” on the day after his or her termination of employment with Seacoast Utility Authority, a loan, if not otherwise due and payable, is due and payable on the date the Participant terminates employment with Seacoast Utility Authority. A loan, if not otherwise due and payable, is due and payable on termination of the Plan, notwithstanding any contrary provision in the promissory note. Nothing in this loan policy restricts Seacoast Utility Authority’s right to terminate the Plan at any time. Participants should note the law treats the amount of any loan (other than a “home loan”) not repaid five years after the date of the loan as a taxable distribution on the last day of the five year period or, if sooner, at the time the loan is in default. If a Participant extends a non-home loan having a five year or less repayment term beyond five years, the balance of the loan at the time of the extension is a taxable distribution to the Participant. 4. SECURITY FOR LOAN. The Plan will require that the Participant provide adequate security before a loan is granted. For this purpose, the Plan will consider a Participant’s interest under the Plan to be adequate security. However, in no event will more than 50% of a Participant’s vested interest in the Plan (determined immediately after origination of the loan) be used as security for the loan. Generally, it will be the policy of the Plan not to make loans that require security other than the Participant’s vested interest in the Plan. However, if additional security is necessary to adequately secure the loan, then the Plan Administrator will require that such security be provided before the loan will be granted. 5. FORM OF PLEDGE. The pledge and assignment of a Participant’s account balances will be in the form prescribed by the Plan Administrator. Page 3 of 3 6. MILITARY SERVICE. If a Participant separates from service (or takes a leave of absence) from Seacoast Utility Authority because of service in the military and does not receive a distribution of his or her account balances, the Plan shall suspend loan repayments until the Participant’s completion of military service or until the Participant’s fifth anniversary of commencement of military service, if earlier. The Employer will provide the Participant with a written explanation of the effect of the Participant’s military service upon his or her Plan loan. 7. DEFAULT. The Plan Administrator will treat a loan in default if: • Any scheduled payment remains unpaid beyond the last day of the calendar quarter following the calendar quarter in which the Participant missed the scheduled payment; or • The Participant makes or furnishes any false representation or statement to the Plan. The Participant will have the opportunity to repay the loan, resume current status of the loan by paying any missed payment plus interest, or, if distribution is available under the Plan, request distribution of the note. If the loan remains in default, the Plan Administrator will offset the Participant’s vested account balances by the outstanding balance of the loan to the extent permitted by law. The Plan Administrator will treat the note as repaid to the extent of any permissible offset. Pending final disposition of the note, the Participant remains obligated for any unpaid principal and accrued interest.
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