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Home My WebLink About05-14-2014 Administration Committee MinutesMINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, May 14, 2014, at 5:30 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was held on May 14, 2014, at 5:35 p.m., in the Sanitation District's Administration Building. Director Hernandez led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: Brad Reese, Chair David Benavides Steven Choi Tyler Diep Gerard Goedhart (Alternate) Gene Hernandez Prakash Narain Janet Nguyen Robert Ooten (Alternate) Teresa Smith Dave Sullivan (Alternate) Troy Edgar, Board Chair Tom Beamish, Board Vice-Chair COMMITTEE MEMBERS ABSENT: John Withers, Vice-Chair PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: STAFF PRESENT: Jim Herberg, General Manager Bob Ghirelli, Assistant General Manager Lorenzo Tyner, Director of Finance & Administrative Services Jeff Reed, Director of Human Resources Rob Thompson, Director of Engineering Ed Torres, Director of Operations and Maintenance Maria Ayala, Clerk of the Board Norbert Gaia Mark Esquer Al Garcia Marco Guardi Randy Kleinman Laurie Klinger Rich Spencer Mike White OTHERS PRESENT: Brad Hagin, General Counsel Anna Laliberte, Alliant Insurance Services Committee Chair Reese did not provide a report. 05/14/2014 Administration Committee Minutes Page 1 of 6 REPORT OF GENERAL MANAGER: General Manager, Jim Herberg, announced the following: Reminder about the OCSD 60th Anniversary State of the District event, scheduled for May 21st. He asked the Committee members to RSVP for the event if they are able to attend. Reminder about the harassment and discrimination training requirement. Asked that if the Directors have not already signed up, to please contact the Clerk of the Board to participate in the upcoming trainings. Notified the Committee that the first OCSD/SAWPA Joint Policy Committee had met on May 12th. SAWPA invited the OCSD Board to attend a tour of their Chino II Desalter. More information will be provided at a later date. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services, Lorenzo Tyner introduced OCSD's new Risk Manager, Marco Guardi. CONSENT CALENDAR: 1. MOVED, SECONDED, AND DULY CARRIED: Approve Minutes of the April 9, 2014 Administration Committee Meeting. AYES: NOES: Beamish, Benavides, Choi, Diep, Edgar, Hernandez, Goedhart (Alternate), Narain, Nguyen, Ooten (Alternate), Reese and Smith None ABSTENTIONS: None ABSENT: Sullivan (Alternate) and Withers. 2. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: Approve not-to-exceed numbers as follows, with the understanding that the Sanitation District's insurance broker will continue to negotiate with insurers to seek the lowest possible premiums prior to the expiration date of the current major insurance policies: 05/14/2014 Administration Committee Minutes Page 2 of 6 A. Excess liability insurance -$390,224; and B. Excess workers compensation insurance - a rate of $0.3408 per $100 of payroll (estimated premium at $223,000); and C. Property and Boiler & Machinery combined -$705,830. AYES: Beamish, Benavides, Choi, Diep, Edgar, Hernandez, Goedhart (Alternate), Narain, Nguyen, Ooten (Alternate), Reese and Smith NOES: None ABSTENTIONS: None ABSENT: Sullivan (Alternate) and Withers. 3. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: A. Authorize the General Manager to enter into contracts for Temporary Employment Services (Specification No.CS-2009-421 BD) for a one-year period (July 1, 2014 through June 30, 2015), for a total amount not to exceed $550,000 per year, with a 5% annual aggregate escalation factor, with four one-year renewal options; and B. Authorize the General Manager to add or delete such firms as necessary to meet work requirements as identified by the Human Resources Department. AYES: NOES: Beamish, Benavides, Choi, Diep, Edgar, Hernandez, Goedhart (Alternate), Narain, Nguyen, Ooten (Alternate), Reese, Smith and Withers None ABSTENTIONS: None ABSENT: Sullivan (Alternate) and Withers. 05/14/2014 Administration Committee Minutes Page 3 of 6 4. Receive and file District purchases made under the General Manager's authority for the period of January 1, 2014 -March 31, 2014. AYES: Beamish, Benavides, Choi, Diep, Edgar, Hernandez, Goedhart (Alternate), Narain, Nguyen, Ooten (Alternate), Reese and Smith NOES: None ABSTENTIONS: None ABSENT: Sullivan (Alternate) and Withers. Chair Reese announced that the Committee would hear Agenda Item No. 6 at this time. 6. FY 2014-15 Benefits Program Renewal Costs Jeff Reed, Director of Human Resources, and Rich Spencer, Human Resources Manager, gave a brief report on benefits renewal costs and premium changes and stated that due to fees (pass-through costs) mandated by the Affordable Care Act, the cost of insurance coverage will increase by 4.5% for the next fiscal year. Alternate Director Dave Sullivan arrived at 5:39 p.m. NON-CONSENT CALENDAR: Mr. Tyner gave a brief explanation of how the proposed amendments to Ordinance No. OCSD-41 would affect business rate payers' claims. The Committee had various questions regarding how the businesses are notified, the time period for claims to be filed after the amendments take effect, how claims are submitted, etc. Staff responded to questions accordingly. 5. Recommend to the Board of Directors to: A. Introduce Ordinance No. OCSD-XX, entitled "An Ordinance of the Board of Directors of the Orange County Sanitation District amending Section 2.03 of Article II of Ordinance No. OCSD-41 concerning rebates and refunds of Sanitary Sewer Service Charges."; and B. Motion to read Ordinance No. OCSD-XX by title only and waive reading of said entire Ordinance on May 28, 2014; and C. Set June 25, 2014 for the second reading and adoption of Ordinance No. OCSD-XX; and 05/14/2014 Administration Committee Minutes Page 4 of 6 D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. AYES: Beamish, Benavides, Choi, Diep, Edgar, Hernandez, Goedhart (Alternate), Narain, Ooten (Alternate), Reese, Smith and Sullivan (Alternate) NOES: Nguyen ABSTENTIONS: None ABSENT: Withers INFORMATION ITEMS: 7. Post March 28, 2014 Earthquake Activities Mr. Tyner presented information on the District's Integrated Emergency Response Plan (IERP). He explained the appropriate level of response that was put into effect after the recent earthquakes, and further explained that the District has a series of steps to go through in the event there is an emergency. 8. OCSD Reserves, Investments and Financial Management Policies Mr. Tyner presented an informational PowerPoint Presentation regarding: four major categories of revenues; user fees; debt issuances; operating contingency fees; seven major criteria for reserves; and funds management. He explained the RFP process for the selection of a new Investment Advisor and Investment Manager. He clarified that the Advisor and the Manager could not be the same firm. Mr. Tyner answered questions from the Committee regarding: Pimco's performance and fee structure; possibly changing to a fee structure linked with performance; unfunded liability and excess reserves. Director Benavides departed the meeting at 6:15 p.m. Director Nguyen departed the meeting at 6:20 p.m. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Director Choi invited everybody to attend the Korean Festival in Irvine on May 1?1h. 05/14/2014 Administration Committee Minutes Page 5 of 6 ADJOURNMENT: Committee Chair Reese declared the meeting adjourned at 6:25 p.m ., to the next regularly scheduled meeting of June 11, 2014 . Submitted by: ~·~~ . Mafia E. Ayala Clerk of the Board '· 05/14/2014 Administration Committee Minutes Page 6 of 6