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Home My WebLink About09-10-2014 Administration Committee MinutesMINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, September 10, 2014, at 5:30 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was held on September 10, 2014, at 5:31 p.m., in the Sanitation District's Administration Building. Director Withers led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: Brad Reese, Chair John Withers, Vice-Chair Joe Carchio Steven Choi Tyler Diep James Ferryman Peter Kim Prakash Narain Teresa Smith Tom Beamish, Board Chair John Nielsen, Board Vice-Chair COMMITTEE MEMBERS ABSENT: David Benavides Gene Hernandez Janet Nguyen PUBLIC COMMENTS: None. 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 Kelly Lore, Acting Clerk of the Board Rich Spencer Mike White Jeff Armstrong Wes Bauer Sam Choi Rich Castillon Jim Colston Ron Coss Norbert Gaia Al Garcia Riaz Moinuddin Mike Von Winckelmann OTHERS PRESENT: Brad Hagin, General Counsel Steven Center, Callan Investments 09/10/2014 Administration Committee Minutes Page 1 of 6 REPORT OF COMMITTEE CHAIR: Committee Chair Reese did not provide a report. REPORT OF GENERAL MANAGER: General Manager, Jim Herberg introduced Director of Engineering, Rob Thompson who updated the Committee on the Newport Beach Force Main project and the construction outreach efforts in place. Director Teresa Smith arrived at 5:32 p.m. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services, Lorenzo Tyner did not provide a report. CONSENT CALENDAR: 1. MOVED, SECONDED, AND DULY CARRIED to: Approve Minutes of the July 9, 2014 Administration Committee Meeting. AYES: NOES: Beamish, Carchio, Choi, Diep, Ferryman, Kim, Narain, Nielsen, Reese, Smith and Withers None ABSTENTIONS: None ABSENT: Benavides, Hernandez and Nguyen 2. MOVED, SECONDED, AND DULY CARRIED to: Recommend to the Board of Directors to: Approve payment in an amount up to $579,000 to the State Water Resources Control Board for annual permit fees for the ocean discharge permit. AYES: NOES: Beamish, Carchio, Choi, Diep, Ferryman, Kim, Narain, Nielsen, Reese, Smith and Withers None ABSTENTIONS: None ABSENT: Benavides, Hernandez and Nguyen 09/10/2014 Administration Committee Minutes Page 2 of 6 3. MOVED, SECONDED, AND DULY CARRIED to: Recommend to the Board of Directors to: Receive and file report of reimbursements to Board Members and Staff per Government Code 53065.5 for the period of July 1, 2013 through June 30, 2014. AYES: NOES: Beamish, Carchio, Choi, Diep, Ferryman, Kim, Narain, Nielsen, Reese, Smith and Withers None ABSTENTIONS: None ABSENT: Benavides, Hernandez and Nguyen 4. MOVED, SECONDED, AND DULY CARRIED to: Recommend to the Board of Directors to: Approve a Purchase Order with PLC LTD, the lowest responsive and responsible bidder, for the purchase of Modicon computer equipment, Specification No. E-2014-626, for an amount of $636,579. AYES: NOES: Beamish, Carchio, Choi, Diep, Ferryman, Kim, Narain, Nielsen, Reese, Smith and Withers None ABSTENTIONS: None ABSENT: Benavides, Hernandez and Nguyen 5. MOVED, SECONDED, AND DULY CARRIED to: Recommend to the Board of Directors to: A. Adopt Resolution No. OCSD14-XX, authorizing the execution and delivery by the Sanitation District of an Installment Purchase Agreement, a Trust Agreement and a Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Revenue Refunding Certificate Anticipation Notes, Series 2014B, authorizing the execution and delivery of such Notes evidencing principal in an aggregate amount of not to exceed $135,000,000, approving a Notice of Intention to Sell, authorizing the distribution of an Official Notice Inviting Bids and an Official Statement in connection with the offering and sale of such Notes and authorizing the execution of necessary documents and related actions; and 09/10/2014 Administration Committee Minutes Page 3 of 6 B. That the Orange County Sanitation District Financing Corporation approve the documents, supporting and authorizing the Notes in an aggregate amount not to exceed $135,000,000. AYES: NOES: Beamish, Carchio, Choi, Diep, Ferryman, Kim, Narain, Nielsen, Reese, Smith and Withers None ABSTENTIONS: None ABSENT: Benavides, Hernandez and Nguyen NON-CONSENT CALENDAR: Lorenzo Tyner, Director of Finance and Administrative Services, briefly explained the necessity of this item. An alternate motion and a copy of the draft Amendment No. 1 was provided by staff and presented in hard copy to the Committee and made available to the public. 6. MOVED, SECONDED, AND DULY CARRIED to: Recommend to the Board of Directors to: Approve an increase to the Service Agreement with Securitas Security Services USA, Inc. for Plant 1 and Plant 2 Security Services Specification No. S 2010 48, for the period of July 1, 2014 through June 30, 2015 for an additional amount of $465,243, increasing the total annual amount not to exceed $850,000. A. Approve Amendment No. 1, an increase to the Service Agreement with Securitas Security Services USA, Inc. for Plant 1 and Plant 2 Security Services Specification No. S-2010-48, for the period of July 1, 2014 through June 30, 2015 for an additional amount of $388,002, increasing the total annual amount not to exceed $772,759; and B. Approve the increase under A. above for the fourth and final optional renewal period of July 1, 2015 through June 30, 2016; and C. Approve a 10% contingency ($77,275). AYES: NOES: Beamish, Carchio, Choi, Diep, Ferryman, Kim, Narain, Nielsen, Reese, Smith and Withers None ABSTENTIONS: None ABSENT: Benavides, Hernandez and Nguyen 09/10/2014 Administration Committee Minutes Page 4 of6 Mr. Tyner, provided a brief presentation and PowerPoint to the Committee. He introduced Steven Center from Callen Associates, the district's investment manager. They both responded to several questions from the Committee regarding PIMCO including; Net fees, Composite numbers, reduction of fees, above/below benchmarks, loss of revenue and their performance in the last two quarters. Mr. Center assured the Committee that PIMCO as a whole is managing more money than any other investment manager and pointed out the various differences between PIMCO and Chandler. He was further asked if the portfolio could be split? Discussion ensued as to the administrative challenges of a split, transaction costs, liquidation costs; competitiveness, diversification, control over funds, and investment policies. The Committee asked staff for more information regarding co-management of funds, fee structures and possible elimination of basis points. 7. MOVED, SECONDED, AND DULY CARRIED to: Approve the continuation of Pacific Investment Management Company (PIMCO) as the District's External Portfolio Manager and authorize staff to negotiate a professional service agreement. Continue the Item to the next meeting. AYES: Beamish, Carchio, Choi, Diep, Ferryman, Kim, Narain, Nielsen, Reese, Smith and Withers NOES: None ABSTENTIONS: None ABSENT: Benavides, Hernandez and Nguyen Director Choi and Director Withers left the meeting 6:16 p.m. General Counsel Brad Hogin, provided a brief explanation and answered questions and concerns regarding the Levine Act and the payment process of claims. Director Narain left the meeting at 6:29 p.m. 8. MOVED, SECONDED, AND DULY CARRIED to: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 14-XX entitled; "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing the Policies and Practices for the Payment of Warrants and Demands." 09/10/2014 Administration Committee Minutes Page 5 of 6 AYES: Beamish, Carchio, Ferryman, Nielsen, Reese and Smith NOES: None ABSTENTIONS: Diep and Kim ABSENT: Benavides, Choi, Hernandez, Narain, Nguyen and Withers INFORMATION ITEMS: 9. Cessation of Disinfection of Ocean Discharge. Ron Coss, Environmental Lab and OM Manager provided the Committee an informative PowerPoint presentation regarding the Cessation of Disinfection OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Committee Chair Reese declared the meeting adjourned at 6:43 p.m., to the next regularly scheduled meeting of October 8, 2014. ' 09/10/2014 Administration Committee Minutes Page 6 of 6