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HomeMy WebLinkAbout03-09-2016 Administration Committee MinutesMINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, March 9, 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 March 9, 2016, at 5:01 p.m., in the Administration Building of the Orange County Sanitation District. Director Katapodis led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: Keith Curry, Chair Lucille Kring, Vice-Chair Steven Choi Jim Ferryman Jim Katapodis Peter Kim Greg Mills Joy Neugebauer Teresa Smith Sal Tinajero John Nielsen, Board Chair Greg Sebourn, Board Vice-Chair COMMITTEE MEMBERS ABSENT: 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 Ed Torres, Director of Operations & Maintenance Mike White, Controller Tina Knapp, Deputy Clerk of the Board Norbert Gaia Mark Manzo Alfredo Garcia Gary Conklin Jim Mullins Jennifer Cabral OTHERS PRESENT: Kendra Carney, Associate General Counsel Committee Chair Curry did not provide a report. REPORT OF GENERAL MANAGER: General Manager Jim Herberg commented on a recent article in the "Los Angeles Times" regarding antibiotic resistant bacteria in wastewater treatment plants. He stated the 03/09/16 Administration Committee Minutes Page 1 of 5 article referenced treatment facilities California, ocean dischargers, and unpublished work by the EPA which OCSD has not seen the detailed reports and no sampling and/or testing has shown this bacteria in OCSD's effluent. General Manager Herberg further stated that the article seems to confuse the issue of urban run-off after a rainstorm vs. treated discharge and he indicated that he had spoken with the City of Los Angeles and Los Angeles County Sanitation Districts and there is interest in putting together a letter to the editor style response to the article. General Manager Herberg responded to questions from the Committee regarding: location of bacteria, specific testing; and epidemiological studies and tests of the ocean and shoreline which continually achieve the required standards. Mr. Herberg further indicated that OCSD is confident that the bacteria could not withstand the treatment of that the Orange County Water District performs; rather, the matter seems to be related to the ocean and treatment facilities. Director Teresa Smith arrived at 5:04 p.m. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services Lorenzo Tyner reported that the debt refunding that was approved by the Committee last month was recently priced and will result in savings to OCSD totaling $19 million dollars. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED! SECONDED AND DULY CARRIED TO: Approve Corrected Minutes of the February 10, 2016 Administration Committee Meeting. AYES: NOES: ABSTENTIONS: ABSENT: Choi, Curry, Ferryman, Katapodis, Neugebauer, Nielsen, and T. Smith None None Parker, Sebourn, and Tinajero Kim, Kring, Mills, 2. APPOINTING A CLERK OF THE BOARD PRO TEM TO THE BOARD OF DIRECTORS IN THE ABSENCE OF THE CLERK OF THE BOARD 03/09/16 (Clerk of the Board) MOVED! SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 16-XX entitled, "A Resolution of the Board of Directors of Orange County Sanitation District appointing a Clerk of the Board Pro Tern to the Board of Directors; and repealing Resolution No. OCSD 07-23." Administration Committee Minutes Page 2 of 5 AYES: NOES: ABSTENTIONS: ABSENT: Choi, Curry, Ferryman, Katapodis, Neugebauer, Nielsen, and T. Smith None None Parker, Sebourn, and Tinajero Kim, Kring, Mills, 3. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF FEBRUARY 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 February 2016. AYES: NOES: ABSTENTIONS: ABSENT: Choi, Curry, Ferryman, Katapodis, Kring, Mills, Neugebauer, Nielsen, and T. Smith None Kim Parker, Sebourn, and Tinajero 4. DESIGNATION OF APPLICANT'S AGENT FOR DISASTER RELIEF (Bob Ghirelli) MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 16-XX, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District authorizing the General Manager or Designee to Execute State Office of Emergency Services and/or Federal Emergency Management Agency Documents and Relevant Permit Applications for Present and Future Disaster Relief Applications; and Repealing Resolution No. OCSD 11-03." AYES: NOES: ABSTENTIONS: ABSENT: Choi, Curry, Ferryman, Katapodis, Neugebauer, Nielsen, and T. Smith None None Parker, Sebourn, and Tinajero Kim, Kring, Mills, INFORMATION ITEMS: 5. FY 2016-17 AND 2017-18 BUDGET UPDATE (Lorenzo Tyner) 03/09/16 Director of Finance and Administrative Services Lorenzo Tyner introduced Mike White, Controller, who provided a PowerPoint presentation and an update on the FY 2016-17 and 2017-18 budget including the four major categories that compose revenues: fees & charges, general income, other/interagency, and debt proceeds. Administration Committee Minutes Page 3 of 5 Mr. White responded to questions regarding: the definition of near term, debt issuances; property values increases; new developments increase capacity needs; and capital facilities capacity charges. Mr. White indicated that interest revenue is difficult to project; however, Mr. Tyner stated that this is of benefit as OCSD can borrow money more inexpensively as well. 6. ENVIRONMENTAL SERVICES DEPARTMENT OVERVIEW (Bob Ghirelli) Assistant General Manager Bob Ghirelli provided a PowerPoint presentation and an overview of the Environmental Services Department. Mr. Ghirelli distributed the recruitment flyer for the new Director of Environmental Services. Director of Human Resources Celia Chandler stated a recruitment firm was not used for this position due to sufficient resources and extensive advertising done, which is resulting in a good number of qualified applicants. Staff confirmed that the salary being offered for this role is very competitive and that the creation of this position resulted from a recent retirement in a management position, so is a reallocation of that vacancy and will not increase the management staff count. Board Vice-Chair Sebourn arrived at 5:18 p.m. 7. ENERGY EFFICIENCY AUDIT FINDINGS (Ed Torres) Director of Operations Ed Torres introduced Senior Engineer Gary Conklin who provided an informative PowerPoint presentation and report of the energy efficiency audit findings. Director of Engineering Rob Thompson responded to questions regarding the cost of replacing, and the advantages of LED lights and how it affects worker safety, indicating that the LED light is whiter, more pleasant, and allows more clarity In response to a question, Director of Operations & Maintenance Ed Torres indicated that OCSD produces approximately 2/3 of the power required to run the plant from the internal combustion engines that are generated from the solids that are digested and turned into methane gas. He stated that the District continually reviews current operations to be efficient as possible. Director Tinajero arrived at 5:47 p.m. CLOSED SESSION: None. 03/09/16 Administration Committee Minutes Page 4 of 5 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IFANY: Director of Finance and Administrative Services Lorenzo Tyner indicated that during the recent debt issuance, OCSD's 'AAA' Credit Rating was reaffirmed by both Fitch Ratings and Standards & Poor's which will allow OCSD to secure very attractive financing for infrastructure improvements, reducing costs, and help to keep fees low. ADJOURNMENT: Committee Chair Curry declared the meeting adjourned at 5:51 p.m. to the next regularly scheduled meeting of Wednesday, April 13, 2016 at 5:00 p.m . Submitted by: T(/1/-4/~ Tina Knapp Deputy Clerk of the Board 03/09/16 Administration Committee Minutes Page 5 of 5