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HomeMy WebLinkAbout03-11-2015 Administration Committee MinutesMINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, March 11, 2015, at 5:30 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Vice-Chair Curry on March 11, 2015, at 5:30 p.m., in the Administration Building of the Orange County Sanitation District. Committee Vice-Chair Curry led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: John Withers, Chair Keith Curry, Vice-Chair Steven Choi Tyler Diep James Ferryman Jim Katapodis Peter Kim Greg Mills Glenn Parker Teresa Smith Sal Tinajero Tom Beamish, Board Chair John Nielsen, Board Vice-Chair COMMITTEE MEMBERS ABSENT: None. 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 Rob Thompson, Director of Engineering Nick Arhontes, Director of Facility Support Services Kelly Lore, Acting Clerk of the Board Mike White Cindi Ambrose Jennifer Cabral Marc Dubois Anne Marie Feery Norbert Gaia Al Garcia Randy Kleinman Jackie Santos Cori Voss OTHERS PRESENT: Brad Hagin, General Counsel Committee Vice-Chair Curry did not provide a report. 03/11/2015 Administration Committee Minutes Page 1of5 REPORT OF GENERAL MANAGER: General Manager, Jim Herberg, did not provide a report. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services, Lorenzo Tyner reported on two violations that were received from Cal/OSHA. The first was an employee who injured their finger while working on some fan belts. Because of the injury, OSHA fined us and we appealed that fine, however we were unsuccessful in the appeal. The exposure is about $22,000 and is considered a serious violation. If there is a second violation, it could be considered willful, with a fine of about $70,000 and other possible assessments. Mr. Tyner stated that he does not anticipate that being an issue as we have used this particular procedure over the last 20 years with no injuries. However, we do take the OSHA report and the health of our employees seriously, and for prevention, have done additional training, will be putting in additional guards, and will do what is known as a safety stand-down where we will meet with the managers and supervisors impacted by that area, making sure they are aware of the injury and the additional safeguards. Mr. Tyner stated that the second violation involved the use of a crane about 18 months ago. This involved a procedural issue, there was no injury or potential injury, however, OSHA found that we might not have been in complete compliance with our Standard Operating Procedures (SOP). They found a technical variance in the way we used, or planned for the use of the crane. We are in the process of looking at that item with OSHA and anticipate the item be settled shortly. This violation contains three items; a procedural item with exposure in the $100-400 fine range, the second item should be vacated as there is not enough evidence to support the violation, and the third is a technical procedural item with exposure in the $5000 fine range. CONSENT CALENDAR: 1. MOVED, SECONDED and DULY CARRIED TO: Approve Minutes of the February 11, 2015, Administration Committee Meeting. AYES: NOES: Beamish, Choi, Curry, Ferryman, Katapodis, Kim, Mills, Nielsen, and Parker None ABSTENTIONS: None ABSENT: Diep, Smith, Tinajero and Withers 03/11/2015 Administration Committee Minutes Page 2 of 5 2. MOVED, SECONDED and DULY CARRIED TO: Recommend to the Board of Directors to: Approve the Senior Human Resources Analyst Lending Agreement between Orange County Sanitation District (OCSD) and Costa Mesa Sanitary District (CMSD), to contract an OCSD Senior Human Resources Analyst as the Interim Human Resources Manager from March 21, 2015 through June 30, 2015, as a workforce development opportunity. AYES: NOES: Beamish, Choi, Curry, Ferryman, Katapodis, Kim, Mills, Nielsen, and Parker None ABSTENTIONS: None ABSENT: Diep, Smith, Tinajero and Withers NON-CONSENT CALENDAR Mr. Tyner provided a brief overview of this item. Director Parked requested information regarding what controls are in place to provide compliance for this Ordinance. Mr. Herberg stated the information would be provided at the next Board meeting. 3. MOVED, SECONDED and DULY CARRIED TO: Recommend to the Board of Directors to: A. Introduce Ordinance No. OCSD-47, entitled "An Ordinance of the Board of Directors of the Orange County Sanitation District, Establishing Requirements and Procedures for the Purchase of Goods, Services, and Public Works Projects" for first reading at the March 2015 Board meeting." and B. Motion to read Ordinance No. OCSD-47 by title only and waive reading of said entire Ordinance on March 25, 2015; and C. Set April 22, 2015, as the date for the second reading and adoption of Ordinance No. OCSD-47; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. AYES: NOES: Beamish, Choi, Curry, Ferryman, Katapodis, Kim, Mills, Nielsen, and Parker None ABSTENTIONS: None 03/11/2015 Administration Committee Minutes Page 3 of 5 ABSENT: Diep, Smith, Tinajero and Withers INFORMATION ITEMS: Director Theresa Smith arrived at 5:36 p.m. Director Diep arrived at 5:37 p.m. 4. Status of 2015-16 Insurance Renewals Director of Finance and Administrative Services, Lorenzo Tyner stated that insurance renewals are brought to the Board twice during the budget process. These preliminary assumptions are being brought to the committee prior to the actual action needed in June. Dennis Mulqueeny, Senior Vice President of Alliant insurance provided a brief presentation regarding each of OCSD's four major insurances (General Liability, Workers' Compensation; Property and Flood, and Boiler & Machinery) with coverages designed for government entity operations and the renewal costs of each. The possibility of earthquake insurance was also discussed. Mr. Mulqueeny then answered questions from the Committee regarding: marketing processes to provide quotations; earthquake insurance estimates; previous earthquake damage; California admitted/non-admitted carriers; and minimum standards for a carrier which is A7. Director Choi requested a rate comparison and Director Parker requested information on non-admitted carriers and further analysis prior to required action. Mr. Herberg and Mr. Tyner stated that the information requested would be provided in the near future. Committee Chair Withers arrived at 5:50 p.m. Director Diep left the meeting at 5:50 p.m. 5. FY 2015-16 District Budget Update Controller, Mike White provided an informative PowerPoint Presentation on the budgeted revenue update for fiscal years 2014-15 and 2015-16, including fees and charges, which represent the largest component of revenues, property taxes and single family residential fees which represent OCSD's largest revenue. Mr. White stated that there is no new money debt issuance projected. Director Tinajero arrived at 6:00 p.m. 03/11/2015 Administration Committee Minutes Page 4 of 5 6. Workforce Planning Human Resources Manager, Rich Spencer provided an informative PowerPoint Presentation on Workforce Planning, which includes: organizational structure; organizational overview; recognized employee organizations; unrepresented employee groups; importance of workforce planning development efforts; and workforce analysis, planning and development. Questions were answered from Mr. Spencer regarding: percentage of internal promotions; entry level hiring; internships; licensing; attracting higher level employees; anticipated retiree costs; technical programs such as Santiago Canyon College and transition and succession plans. Director Choi left the meeting at 6:20 p .m. Vice-Chair John Nielsen left the meeting at 6:25 p.m. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Mr. Herberg, stated that an update on budgeted expenditures will be provided next month. ADJOURNMENT: Committee Chair Withers declared the meeting adjourned at 6:34 p.m., to the next regularly scheduled meeting of April 8, 2015 at 5:30 p.m. Submitted by: 03/11/2015 Administration Committee Minutes Page 5 of 5