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Home My WebLink About02-19-2014 Administration Committee MinutesCORRECTED MINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, February 19, 2014, at 5:30 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was held on February 19, 2014, at 5:33 p.m., in the Sanitation District's Administration Building. Director Ferryman led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: Brad Reese, Chair John Withers, Vice-Chair David Benavides Joe Carchio Steven Choi Tyler Diep James Ferryman Gene Hernandez Peter Kim Prakash Narain Teresa Smith Troy Edgar, Board Chair Tom Beamish, Board Vice-Chair COMMITTEE MEMBERS ABSENT: Janet Nguyen PUBLIC COMMENTS: STAFF PRESENT: Jim Herberg, General Manager Lorenzo Tyner, Director of Finance & Administrative Services Jeff Reed, Director of Human Resources Nick Kanetis, Director of Engineering Ed Torres, Director of Operations and Maintenance Nick Arhontes, Director of Facilities Support Services Kelly Lore, Secretary Pro Tern Jennifer Cabral Rich Castillon Norbert Gaia Al Garcia Stephanie Good Dave Halverson Andrew Nau Joe Park OTHERS PRESENT: Brad Hogin, General Counsel Chair Reese stated that there were two speakers who would be heard prior to Item 5. REPORT OF COMMITTEE CHAIR: Committee Chair Reese did not provide a report. 02/19/2014 Administration Committee Minutes Page 1 of 6 REPORT OF GENERAL MANAGER: General Manager, Jim Herberg, did not provide a report. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Lorenzo Tyner, Director of Finance, did not provide a report. CONSENT CALENDAR: 1. MOVED, SECONDED, AND DULY CARRIED: Approve Minutes of the December 11, 2013 Administration Committee Meeting. AYES: NOES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers None ABSTENTIONS: None ABSENT: Nguyen 2. MOVED, SECONDED, AND DULY CARRIED: A. Approve an agreement for Deferred Compensation Program 457(b) Investment Consulting Services, Specification No. CS-2013-588, with SST Benefits Consulting for a term of three years, in an amount not to exceed $158,000 with the option to renew for one additional one-year period; and B. Approve a contingency of $15,800 (10%) AYES: NOES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers None ABSTENTIONS: None ABSENT: Nguyen NON-CONSENT: 3. Director of Human Resources, Jeff Reed provided a brief presentation regarding 02/19/2014 Administration Committee Minutes Page 2 of 6 this item and answered questions from the Committee. MOVED, SECONDED, AND DULY CARRIED: Authorize the General Manager to advertise a request for proposal and subsequently award a Consultant Services Agreement for an OCSD-wide classification and compensation study, for a total amount not to exceed $100,000. AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers NOES: None ABSTENTIONS: None ABSENT: Nguyen 4. Director of Director of Finance and Administrative Services, Lorenzo Tyner, provided a brief presentation regarding this item and answered questions from the Committee. MOVED, SECONDED, AND DULY CARRIED: A. Approve a Professional Services Agreement for Specification S-2013- 562BD with CiM Maintenance, Inc., for Enterprise Asset Management - Planning and Scheduling Software, for an amount not to exceed $147,297; and B. Approve a contingency in the amount of $14,730 (10%). AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers NOES: None ABSTENTIONS: None ABSENT: Nguyen 5. Chair Reese called upon the speakers who wished to address this item. Patrick Shields, Director of Operations, Irvine Ranch Water District (IRWD), stating that IRWD service area in contiguous to the transfer area, and that IRWD would be interested in meeting with staff to explore their agencies' possible contribution to this transfer. Doug Davert, Director, East Orange County Water District (EOCWD), stated that EOCWD encompasses 90% of the transfer area and asked for the Board's 02/19/2014 Administration Committee Minutes Page 3 of 6 support for this transfer. Nick Arhontes, Director of Facilities Support Services, gave an informative PowerPoint presentation on the transfer of sewers -history, process, and financial summary. Staff responded to various questions from the Committee. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: Authorize the General Manager to: A. Approve agreement with East Orange County Water District (EOCWD), to transfer ownership of local sewers in Service Area 7, and the appropriate reserve balances; and B. Provide EOCWD with technical and financial information to assist with its submittal of a reorganization application to the Orange County Local Area Formation Commission (OC LAFCO) to facilitate the transfer of ownership of the local sewers and agreed assets; and C. Draft and execute a letter of support to QC LAFCO in favor of EOCWD's reorganization application, subject to and contingent upon QC LAFCO's acceptance of the terms and conditions of transfer agreed upon by OCSD and EOCWD; and D. Approve an agreement with EOCWD to reimburse OCSD for staff support requested during an agreed transition period. AYES: NOES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers Carchio, Choi and Withers ABSTENTIONS: None ABSENT: Nguyen Director Narain left the meeting at 6:41 p.m. 6. Director of Director of Finance and Administrative Services, Lorenzo Tyner, provided a brief presentation regarding this item and answered questions from the Committee. 02/19/2014 Administration Committee Minutes Page 4 of 6 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: A. Advertise a request for proposal for managing the District's Investment Program that includes making the investment decisions and execution of the investment transactions; and B. Advertise a request for proposal for an investment advisor to assist with the selection process of an investment management firm in an amount not to exceed $40,000. AYES: NOES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Reese, Smith and Withers None ABSTENTIONS: None ABSENT: Narain and Nguyen 7. Director of Director of Finance and Administrative Services, Lorenzo Tyner, and Controller, Mike White, provided a PowerPoint presentation regarding this item and answered questions from the Committee. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: Approve the budget assumptions to be used for the preparation of the FY 2014- 15 and FY 2015-16 two-year budget. AYES: NOES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Reese, Smith and Withers None ABSTENTIONS: None ABSENT: Narain and Nguyen Director Narain returned prior to Closed Session at 7:02 p.m. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE 02/19/2014 Administration Committee Minutes Page 5 of 6 SECTIONS: 54957.6 The Board convened in closed session at 7 :03 p.m. to discuss one item . Confidential Minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. RECONVENE IN REGULAR SESSION : The Board reconvened in regular session at 7:43 p.m. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Committee Chair Reese declared the meeting adjourned at 7:45 p.m . Submitted by: 02/19/2014 Administration Committee Minutes Page 6 of 6