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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