HomeMy WebLinkAbout04-09-2008 Administration Committee MinutesMINUTES OF THE REGULAR MEETING OF
THE ADMINISTRATION COMMITTEE
Orange County Sanitation District
Wednesday, April 9, 2008, at 5:00P.M.
A meeting of the Administration Committee of the Orange County Sanitation District was held on
April 9, 2008, at 5:00 p.m., in the Sanitation District's Administrative Office.
(2) Following the Pledge of Allegiance, a quorum was declared present, as follows:
ADMINISTRATION COMMITTEE
MEMBERS:
DIRECTORS PRESENT:
Mark Waldman, Chair
Phil Luebben, Vice Chair
Bill Dalton
Jon Dumitru
Rich Freschi
Don Hansen
Darryl Miller
Joy Neugebauer
Chris Norby
Christina Shea
Jim Winder
Doug Davert, Board Vice Chair
DIRECTORS ABSENT:
Sal Tinajero
Jim Ferryman, Board Chair
STAFF PRESENT:
Jim Ruth, General Manager
Bob Ghirelli, Assistant General Manager
Jim Herberg, Director of Engineering
Lorenzo Tyner, Director of Finance and
Administrative Services
Mike White, Controller
Lilia Kovac, Committee Secretary
Jim Burror
Rich Castillon
Norbert Gaia
Bob Geggie
Randy Kleinman
Paul Krzysiak
Paul Loehr
Jeff Reed
Rich Spencer
OTHERS PRESENT:
Brad Hogin, General Counsel
Robert Grantham
Don Mclean
Sean Moieny
Chris Rouk
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(3) APPOINTMENT OF CHAIR PROTEM APR 23 2008
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No appointment was necessary.
(4) PUBLIC COMMENTS
Sean Moieny of Scottel and Chris Rouk of NEC addressed the committee members with
reference to item 1 O(a), and stated that the companies they represent provide equipment and
services of equal or better value and asked for a delay on issuance of the telephone system
contract award .
Minutes of the Administration Committee
April9, 2008
Page 2
(5) REPORT OF THE COMMITTEE CHAIR
Chair Waldman did not give a report.
(6) REPORT OF THE GENERAL MANAGER
General Manager, Jim Ruth, did not give a report.
(7) REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES
Lorenzo Tyner, Director of Finance and Administrative Services, reported briefly on the stock
market activity and the Sanitation District's bond insurer's rating may require a speedy debt
refinance to retain the AA bond rating, bypassing the Administration Committee and going
directly to the Board for approval. Mr. Tyner also advised the committee members that a labor
bargaining unit agreement requires that a reclassification change request be made to correct a
clerical error, and will be going directly to the Board for approval.
Director of Engineering, Jim Herberg, presented a brief overview of the CIP program and its
relationship to the budget.
(8) REPORT OF GENERAL COUNSEL
Brad Hogin, General Counsel, did not give a report.
(9) CONSENT CALENDAR ITEMS
Consideration of motion to approve all agenda items appearing on the Consent Calendar not
specifically removed from same, as follows:
a. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the March 12, 2008
meeting of the Administration Committee.
END OF CONSENT CALENDAR
(1 0) ACTION ITEMS
a. ADM08-08 Information Technology Manager, Rich Castillon, presented a brief history
of telephone systems and technical problems with the Sanitation District's
current phone system. Mr. Castillon also reported that after releasing a
nationwide request for information and an on-going study, and pilot
program of phone systems that had been carried at various levels for the
last three years, staff is recommending to approve a compatible, suitable,
and cost efficient system at 4% above the GSA discounted pricing.
' . Minutes of the Administration Committee
April 9, 2008
Page 3
b. ADM08-09
MOVED, SECONDED AND DULY CARRIED: Recommend to the Board
of Directors to: 1) Approve a sole source purchase order to Shore Tel Inc.
for the purchase of hardware and software to replace OCSD's telephone
system, for a total amount of $375,460; and,
2) Approve a 5% contingency ($18,775).
By a showing of hands, three no votes were recorded.
The rate study report prepared by Carollo Engineers was distributed to the
Directors, and questions about the study results were answered by the
Carollo Engineers representatives and the District's Controller, Mike
White.
MOVED, SECONDED AND DULY CARRIED: Recommend to the Board
of Directors to adopt revised methodology for calculating high strength
discharger permit rates based upon net revenue requirements that
includes a reduction for property taxes paid by customers.
Director Dumitru opposed.
(11) INFORMATIONAL ITEMS
a. ADM08-1 0 Status on the renewal quotes of the District's Major Insurance Programs
for FY 2008-09
b. ADM08-11
c. ADM08-12
Principal Financial Analyst Randy Kleinman, recognized Don Mclean of
Alliance Insurance, who presented the current insurance conditions, which
are favorable to the Sanitation District. Insurance rates for the District's
major insurance programs will be submitted for approval in May.
FY 2008-09 Benefits Program Renewal Costs
Employee Relations Supervisor, Rich Spencer, provided a brief report of
health insurance rate increase history and projected rates. Staff will be
presenting the new rates at the May Administration committee meeting.
FY 2008-09 and 2009-10 District Proposed Budget Update
Director of Finance and Administrative Services, Lorenzo Tyner,
presented an overview of the proposed budget, highlighting limited
growth, a revised CIP program, increased staffing levels, while assuming
a strong financial position.
(12) CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION
54957(b)(1 ): The Board convened in closed session at 6 :55 p.m. pursuant to Government
Code Section 54956.9, Subdivision (a).
RECONVENE IN REGULAR SESSION: The Board reconvened in regular session at
7:20p.m.
Minutes of the Administration Committee
April 9, 2008
Page4
(13) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF
ANY
There were none.
(14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR
ACTION AND STAFF REPORT
A request by Director Miller was made to explore methods of calculating actual discharge flows for
accurate billing. Director Norby requested that trips to the District's biosolids facilities be considered
for the Board members .
(15) ADJOURNMENT
The Chair declared the meeting adjourned at 7 :25 p .m. The next regular Administration Committee
meeting is scheduled for May 14, 2008, at 5 p .m.
Submitted by:
Lilia Kovac
Committee Secretary