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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 Toby Weissert T F_ILE_ 0 IN T~fr ~FlOE OF -E QL · 't · BOARD ORA~GE co~~ Nl ~wON DISTRIC T (3) APPOINTMENT OF CHAIR PROTEM APR 23 2008 BV:--'L-· t ......... ..: ...,.,_ __ UC5LJ 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