HomeMy WebLinkAbout11-12-2014 Administration Committee MinutesMINUTES OF THE REGULAR MEETING OF
THE ADMINISTRATION COMMITTEE
Orange County Sanitation District
Wednesday, November 12, 2014, at 5:30 P.M.
A regular meeting of the Administration Committee of the Orange County Sanitation
District was held on November 12, 2014, at 5:30 p.m., in the Sanitation District's
Administration Building.
Board Chair, Tom Beamish, thanked Brad Reese for his years of service to the
Sanitation District. In light of Director Reese's upcoming departure from the District,
Chair Beamish has appointed Director John Withers as the new Administration
Committee Chair, and Director Keith Curry as the new Administration Committee Vice-
Chair.
Committee Chair Withers assumed his new position as Committee Chair.
Director Gene Hernandez led the Flag Salute.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT:
John Withers, Chair
David Benavides
Joe Carchio
Tyler Diep
James Ferryman
Gene Hernandez
Peter Kim
Prakash Narain
Janet Nguyen
Brad Reese
Teresa Smith
Tom Beamish, Board Chair
John Nielsen, Board Vice-Chair
COMMITTEE MEMBERS ABSENT:
Steven Choi
Keith Curry, Vice-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
Mike White
Jennifer Cabral
Rich Castillon
Norbert Gaia
Al Garcia
Rich Spencer
OTHERS PRESENT:
Omar Sandoval, General Counsel
Jeff Altshuler, McGladrey LLP
Noah Daniels, McGladrey LLP
Ed Soong, Public Resources Advisory
Group
Heather Stratman, Townsend Public Affairs
11/12/2014 Administration Committee Minutes Page 1 of 7
PUBLIC COMMENTS:
None.
REPORT OF COMMITTEE CHAIR:
Committee Chair Withers did not provide a report.
REPORT OF GENERAL MANAGER:
General Manager, Jim Herberg, announced that Rob Thompson, Director of
Engineering, will be providing a quick update on a recent spill that occurred in Newport
Beach.
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
October 8, 2014 Administration Committee Meeting.
AYES:
NOES:
Beamish, Benavides, Carchio, Diep, Ferryman, Hernandez,
Kim, Narain, Nielsen, Reese, and Withers
None
ABSTENTIONS: None
ABSENT: Choi, Curry, Nguyen, and T. Smith
2. MOVED, SECONDED, AND DULY CARRIED to: Recommend to the Board of
Directors to:
Authorize purchases of information technology computer and peripheral
equipment using the U.S. Communities cooperative agreement #4400001195
with Insight Public Sector or agreement #4400001197 with UNICOM Government
through the contract expiration date, April 30, 2016 for a total amount not to
exceed $700,000, in accordance with Ordinance OCSD-44, Section 2.03(B):
Cooperative Purchases.
11/12/2014 Administration Committee Minutes Page 2 of 7
AYES:
NOES:
Beamish, Benavides, Carchio, Diep, Ferryman, Hernandez,
Kim, Narain, Nielsen, Reese, and Withers
None
ABSTENTIONS: None
ABSENT: Choi, Curry, Nguyen, and T. Smith
3. MOVED, SECONDED, AND DULY CARRIED to: Recommend to the Board of
Directors to:
Authorize purchases of information technology Cisco networking equipment
using the Western States Contracting Alliance (WSCA) cooperative agreement
#AR233 (14-19), Addendum for CA #7-14-70-04, through the expiration date May
31, 2019 for a total amount not to exceed $250,000, in accordance with
Ordinance OCSD-44, Section 2.03(B): Cooperative Purchases.
AYES:
NOES:
Beamish, Benavides, Carchio, Diep, Ferryman, Hernandez,
Kim, Narain, Nielsen, Reese, and Withers
None
ABSTENTIONS: None
ABSENT: Choi, Curry, Nguyen, and T. Smith
4. MOVED, SECONDED, AND DULY CARRIED to: Recommend to the Board of
Directors to:
Receive and file Orange County Sanitation District First Quarter Financial Report
for the period ended September 30, 2014.
AYES:
NOES:
Beamish, Benavides, Carchio, Diep, Ferryman, Hernandez,
Kim, Narain, Nielsen, Reese, and Withers
None
ABSTENTIONS: None
ABSENT: Choi, Curry, Nguyen, and T. Smith
11/12/2014 Administration Committee Minutes Page 3 of 7
5. MOVED, SECONDED, AND DULY CARRIED to: Recommend to the Board of
Directors to:
Receive and file District purchases made under the General Manager's authority
for the period of July 1, 2014 -September 30, 2014.
AYES:
NOES:
Beamish, Benavides, Carchio, Diep, Ferryman, Hernandez,
Kim, Narain, Nielsen, Reese, and Withers
None
ABSTENTIONS: None
ABSENT: Choi, Curry, Nguyen, and T. Smith
NON-CONSENT CALENDAR:
Chair Withers announced that Agenda Item #7 would be addressed first.
Mr. Tyner announced that this agenda item deals with the refunding of some of the
District's existing debt.
7. MOVED, SECONDED, AND DULY CARRIED to: Recommend to the Board of
Directors to:
Authorize the General Manager to issue new fixed rate Certificates of
Participation (COP), to be referred to as Wastewater Refunding Revenue
Obligations, Series 2015A, in an amount sufficient to refund up to $152,990,000
of COP Series 2007B.
AYES:
NOES:
Beamish, Benavides, Carchio, Diep, Ferryman, Hernandez,
Kim, Narain, Nguyen, Nielsen, Reese, T. Smith and Withers
None
ABSTENTIONS: None
ABSENT: Choi, Curry, Nguyen, and T. Smith
11/12/2014 Administration Committee Minutes Page 4 of 7
Mr. Tyner announced that Agenda Item #6 deals with the District's annual financial
report. Mr. Mike White, Controller, will be providing a staff presentation, and a brief
report by the auditors will follow.
Mr. White gave an informational PowerPoint presentation on the District's
Comprehensive Annual Financial Report that included information on the different
financial measurements such as: the change in net position, change in cash and
investments, and change in cost.
Director T. Smith arrived at 5:35 p.m.
Director Nguyen arrived at 5:53 p.m.
Jeff Altshuler, auditor from McGladrey LLP, provided a summary of the firm's audit
findings. He made reference to the report included in the agenda package, attachment
#1, Report to the Administration Committee dated October 30, 2014.
Director Smith had questions regarding areas identified for risk of potential fraud. Mr.
Tyner and Mr. Altshuler addressed the questions, responding that there are both
internal District procedures to identify the risk for fraud; and also the audit procedures
conducted by the firm that could also identify risk of fraud.
Director Kim had questions regarding the OPEB funding and when the District might
pay this off completely. Mr. White responded by explaining about the different elements
involved with paying off this obligation.
6. MOVED, SECONDED, AND DULY CARRIED to: Recommend to the Board of
Directors to:
Receive and file the Sanitation District's Comprehensive Annual Financial Report
for the year ended June 30, 2014, prepared by staff and audited by McGladrey,
Certified Public Accountants, along with the following reports prepared by
McGladrey:
A. Report to the Administration Committee; and
B. Report on Internal Controls; and
C. Independent Accountants' Report on Agreed-Upon Procedures Applied to
Appropriations Limit Worksheets.
AYES:
NOES:
Beamish, Benavides, Carchio, Diep, Ferryman, Hernandez,
Kim, Narain, Nguyen, Nielsen, Reese, T. Smith and Withers
None
ABSTENTIONS: None
11/12/2014 Administration Committee Minutes Page 5 of7
ABSENT: Choi and Curry
INFORMATION ITEMS:
8. Annual Strategic Plan Update and General Manager's Work Plan Overview
General Manager Herberg provided an informative PowerPoint presentation on
the District's Five-Year (FY 2014-19) Strategic Plan. Mr. Herberg explained: the
process of the formulation and adoption of the strategic plan; District's vision and
mission statements; and gave a status report on each of the eight goals
identified in the District's Strategic Plan.
Mr. Herberg also provided a review of his annual General Manager's work plan,
and the various action plans in place and progress of these 15 items.
Tyler Diep departed the meeting at 6:27 p.m.
9. Legislative Affairs Program
Assistant General Manager, Dr. Bob Ghirelli, introduced this report as part of a
series of information presentations being provided to the committees. Dr. Ghirelli
explained that the District's legislative affairs program is supported by Townsend
Public Affairs in Sacramento, and Eric Sapirstein in Washington DC. He also
explained the different elements of the legislative program that include: lobbyists
identifying key legislation that either supports or hinders the efforts of the District;
District sponsored legislation; and, federal and state funding opportunities. The
District also adopts an annual legislative platform that outlines the District's
legislative agenda and goals for the year. Dr. Ghirelli also provided information
on the different agencies that the District works closely with.
Dr. Ghirelli introduced Heather Stratman, from Townsend Public Affairs, who
spoke about the District's legislative program successes during 2014 that
included information on the District's impact by: SB 946, SB 1390, AB 371, etc.
Ms. Stratman also provided brief information on what some of the District's
efforts might be moving forward in 2015 with regards to the Water Bond, future
funding, timelines, outreach and communication efforts.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
Director Nguyen shared concerns over the recent Governor's visit, while campaigning
for the Water Bond, and the actions that followed that event wherein comments
regarding her candidacy were made. Director Nguyen asked that rules be implemented
so that this type of action and/or treatment does not happen in the future on public
11/12/2014 Administration Committee Minutes Page 6 of 7
property.
Ms. Stratman did explain that the Water District would be seeking full reimbursement for
all costs associated with that event to ensure that no public funding was spent.
Mr. Omar Sandoval, General Counsel, also explained how it is usually advised that
these types of events not be held on District premises.
Director Benavides departed the meeting at 6:52 p.m.
Mr. Thompson, Director of Engineering, briefly reported on the recent sewage spill in
Newport Beach on November 1st of about 3,000 to 5,000 gallons. Mr. Thompson
explained the different factors that caused the spill and the District's action plan to
immediately address the spill and plans moving forward with current repair and
construction.
ADJOURNMENT:
Committee Chair Withers declared the meeting adjourned at 6:55 p.m., to the next
regularly scheduled meeting of December 10, 2014 at 5:30 p.m.
Submitted by:
Mari c\E. Ayala 0
Clerk of the Board
11/12/2014 Administration Committee Minutes Page 7 of 7