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Home My WebLink About02-10-2016 Administration Committee MinutesMINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, February 10, 2016, at 5:00 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Chair Curry on February 10, 2016, at 5:00 p.m., in the Administration Building of the Orange County Sanitation District. Director Greg Mills led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: Keith Curry, Chair Lucille Kring, Vice-Chair Steven Choi Bob Ooten (Alternate) Peter Kim Greg Mills Joy Neugebauer Teresa Smith Sal Tinajero John Nielsen, Board Chair Greg Sebourn, Board Vice-Chair COMMITTEE MEMBERS ABSENT: Jim Katapodis Glenn Parker PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: STAFF PRESENT: Jim Herberg, General Manager Bob Ghirelli, Assistant General Manager Celia Chandler, Director of Human Resources Rob Thompson, Director of Engineering Lorenzo Tyner, Director of Finance & Administrative Services Kelly Lore, Clerk of the Board Tina Knapp, Deputy Clerk of the Board Mike White, Controller Norbert Gaia Mark Manzo Damein Frabizio Alfredo Garcia OTHERS PRESENT: Kendra Carney, Associate General Counsel Committee Chair Curry did not provide a report. REPORT OF GENERAL MANAGER: General Manager Jim Herberg reminded the Committee of the upcoming District holiday closures on Friday, February 12, 2016 (Lincoln's Birthday) and Monday, February 15, 2016 (Presidents' Day). 02/10/16 Administration Committee Minutes Page 1 of 6 REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services Lorenzo Tyner reported that in October 2015 a co-operative agreement was approved to allow for the purchase of approximately $500,000 of data recovery equipment. Two purchases were made, which between them exceeded $100,000. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED. SECONDED AND DULY CARRIED TO: Approve Corrected Minutes of the December 9, 2015 Administration Committee Meeting. AYES: NOES: ABSTENTIONS: ABSENT: Curry, Kim, Kring, Nielsen, Neugebauer, Ooten (Alternate), and Sebourn None Mills Choi, Katapodis, Parker, T. Smith, and Tinajero 2. COOPERATIVE PROCUREMENT WITH ADMIN MINNESOTA MATERIALS MANAGEMENT DIVISION (Lorenzo Tyner) MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Authorize a purchase order to procure information technology computer and peripheral equipment using the Admin Minnesota Materials Management Division contract release #C-1084(5) through the contract expiration date, December 31, 2016 for a total amount not to exceed $400,000, with four (4) one-year renewal options, in accordance with Ordinance OCSD-47, Section 2.03(B) Cooperative Purchases. AYES: Curry, Kim, Kring, Mills, Nielsen, Neugebauer, Ooten (Alternate), and Sebourn NOES: None ABSTENTIONS: None ABSENT: Choi, Katapodis, Parker, T. Smith, and Tinajero 3. OUTSIDE ACTIVITIES -EXECUTIVE MANAGEMENT TEAM MEMBER (Celia Chandler) 02/10/16 MOVED. SECONDED AND DULY CARRIED TO: Approve outside activities for one member of the District's Executive Management Team, in accordance with the employee's At-Will Employment Agreement. AYES: Curry, Kim, Kring, Mills, Nielsen, Neugebauer, Ooten (Alternate), and Sebourn Administration Committee Minutes Page 2 of 6 NOES: None ABSTENTIONS: None ABSENT: Choi, Katapodis, Parker, T. Smith, and Tinajero 4. GENERAL MANAGER APPROVED PURCHASES (Lorenzo Tyner) 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 October 1, 2015 -December 31, 2015. AYES: NOES: ABSTENTIONS: ABSENT: Curry, Kim, Kring, Mills, Nielsen, Neugebauer, Ooten (Alternate), and Sebourn None None Choi, Katapodis, Parker, T. Smith, and Tinajero 5. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF JANUARY 2016 (Lorenzo Tyner) MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the report of the investment transactions for the month of January 2016. AYES: NOES: ABSTENTIONS: ABSENT: Curry, Kring, Mills, Nielsen, Neugebauer, Ooten (Alternate), and Sebourn None Kim Choi, Katapodis, Parker, T. Smith, and Tinajero 6. CONSOLIDATED FINANCIAL REPORT 2No QUARTER ENDING DECEMBER 31, 2015 (Lorenzo Tyner) 02/10/16 MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file Orange County District Second Quarter Financial Report for the period ended December31, 2015. AYES: NOES: ABSTENTIONS: ABSENT: Curry, Kim, Kring, Mills, Nielsen, Neugebauer, Ooten (Alternate), and Sebourn None None Choi, Katapodis, Parker, T. Smith, and Tinajero Administration Committee Minutes Page 3 of 6 NON-CONSENT CALENDAR: Director of Finance and Administrative Services Lorenzo Tyner indicated that Item No. 7 pertains to refunding of existing debt, which, due to the current low interest rate environment, provides an opportunity for savings. Mr. Tyner introduced Controller Mike White who reported that the potential savings would total $19,000,000 or, as provided by Chair Curry, 8% savings of the total amount due. Director Teresa Smith arrived at 5:04 p.m. 7. WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2016A (Lorenzo Tyner) MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Adopt Resolution No. OCSD16-XX, authorizing the execution and delivery by the District of an Installment Purchase Agreement, a Trust Agreement, an Escrow Agreement and a Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Wastewater Refunding Revenue Obligations, Series 2016A, authorizing the execution and delivery of such Revenue Obligations evidencing principal in an aggregate amount of not to exceed $163,000,000, 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 Revenue Obligations and authorizing the execution of necessary documents and related actions. MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Orange County Sanitation District Financing Corporation: B. That the Orange County Sanitation District Financing Corporation approve the documents supporting and authorizing the Revenue Obligations in an aggregate amount not to exceed $163,000,000. AYES: NOES: ABSTENTIONS: ABSENT: Curry, Kim, Kring, Mills, Nielsen, Neugebauer, Ooten (Alternate), and Sebourn None T. Smith Choi, Katapodis, Parker, and Tinajero Director of Finance and Administrative Services Lorenzo Tyner introduced Controller Mike White who provided a PowerPoint presentation including review of the FY 2016-17 and FY 2017-18 budget development assumptions (specifically economics, revenue, and reserves); comparison of SFR rates; operating expenses; staffing levels; the Capital Improvement Program (CIP); debt financing; and a preliminary budget summary. 02/10/16 Administration Committee Minutes Page 4 of 6 Director Tinajero and Director Choi arrived at 5:07 p.m. Mr. Tyner responded to questions about the surplus available and the possibility of labeling these funds as allocated for "future expenses". Mr. Tyner also answered questions regarding debt service and outstanding UAL paydown. General Manager Jim Herberg indicated the GIP expenditures for FY 16-17 are lower than what may be seen in two to three years as large projects will be upcoming to renew infrastructure that is nearing mid-life/end of life. Mr. Herberg also indicated that the draft budget information, when available, will further clarify expenditure of money. Director of Engineering Rob Thompson responded to questions regarding environmental requirements and the communication of these requirements by various regulatory agencies. Mr. Thompson indicated that there is good communication between agencies impacted by such changes and information is both shared and received. 8. CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR FOR PREPARATION OF THE FY 2016-17 AND FY 2017-18 TWO-YEAR BUDGET (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: Approve the FY 2016-17 and FY 2017-18 budget assumptions and direct staff to incorporate these parameters in the preparation of this two-year budget. AYES: NOES: ABSTENTIONS: ABSENT: Choi, Curry, Kim, Kring, Mills, Nielsen, Neugebauer, Ooten (Alternate), Sebourn, T. Smith, and Tinajero None None Katapodis and Parker INFORMATION ITEMS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IFANY: None. 02/10/16 Administration Committee Minutes Page 5 of 6 ADJOURNMENT: Committee Chair Curry declared the meeting adjourned at 5:24 p.m. to the next regularly scheduled meeting of Wednesday, March 9, 2016 at 5:00 p .m. Submitted by: r~~~ Tina Knapp Deputy Clerk of the Board 02/10/16 Administration Committee Minutes Page 6 of 6