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Home My WebLink About10-12-2016 Administration Committee MinutesMINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, October 12, 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 October 12, 2016 at 5:01 p.m. in the Administration Building of the Orange County Sanitation District. Chair Curry 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 Erik Peterson (Alternate) Peter Kim Diana Fascenelli (Alternate) John Nielsen, Board Chair Greg Sebourn, Board Vice-Chair COMMITTEE MEMBERS ABSENT: Joy Neugebauer Glenn Parker Teresa Smith Sal Tinajero PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: STAFF PRESENT: Jim Herberg, General Manager Bob Ghirelli, Assistant General Manager Celia Chandler, Director of Human Resources Jim Colston, Director of Environmental Services Rob Thompson, Director of Engineering Lorenzo Tyner, Director of Finance & Administrative Services Tina Knapp, Deputy Clerk of the Board Jennifer Cabral Al Garcia Kathy Millea Man Nguyen Steve Speakman Mike White OTHERS PRESENT: Brad Hogin, General Counsel Bill Morgan, White Nelson Diehl Evans (Winde) Committee Chair Curry did not provide a report. REPORT OF GENERAL MANAGER: General Manager Jim Herberg did not provide a report. 10/12/2016 Administration Committee Minutes Page 1 of 5 REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services Lorenzo Tyner did not provide a report. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED. SECONDED AND DULY CARRIED TO: Approve Minutes of the September 14, 2016 Administration Committee Meeting. AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Kring, Nielsen, and Peterson (Alternate) NOES: None ABSTENTIONS: None ABSENT: Neugebauer, Parker, Sebourn, T. Smith, and Tinajero 2. TEMPORARY EMPLOYMENT SERVICES (Celia Chandler) MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Authorize the General Manager to enter into contracts with various staffing firms for Temporary Employment Services (Specification No.CS-2009- 421 BD); and B. Authorize the General Manager to add or remove staffing firms from the available pool as needed, to meet work requirements identified by the Human Resources Department, with no change to the approved total budget, at a cost not to exceed $814,400. AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Kring, Nielsen, and Peterson (Alternate) NOES: None ABSTENTIONS: None ABSENT: Neugebauer, Parker, Sebourn, T. Smith, and Tinajero 3. DEFERRED COMPENSATION PROGRAM UPDATE (Celia Chandler) MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Adopt Resolution No. OCSD 16-XX, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Acknowledging the Change in Title of the Current Deferred Compensation Plan Administrator to Voya Financial Services and Authorizing Voya Financial Services to 10/12/2016 Administration Committee Minutes Page 2 of 5 Continue Serving as Plan Administrator of the Deferred Compensation Plan for Officers and Employees of the Orange County Sanitation District; and, Repealing Resolution No. OCSD 09-02"; and B. Authorize the General Manager, or his designee, to execute all documents necessary to effect said Deferred Compensation Plan, in a form approved by General Counsel. AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Kring, Nielsen, and Peterson (Alternate) NOES: None ABSTENTIONS: None ABSENT: Neugebauer, Parker, Sebourn, T. Smith, and Tinajero 4. RENEWAL OF ESRI GIS ENTERPRISE LICENSE AGREEMENT (Lorenzo Tyner) MOVED. SECONDED AND DULY CARRIED TO: Authorize the renewal of the Sole Source ESRI GIS Enterprise License Agreement for a two-year period commencing December 31, 2016 through December 30, 2018 for a total amount not to exceed $191,000. AYES: NOES: ABSTENTIONS: ABSENT: NON-CONSENT: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Kring, Nielsen, and Peterson (Alternate) None None Neugebauer, Parker, Sebourn, T. Smith, and Tinajero 5. CONTRACTED INTERNAL AUDIT OF CAPITAL IMPROVEMENT PROJECT CONTRACTS (Lorenzo Tyner) Mr. Tyner introduced Controller Mike White who provided an overview of this item. Mr. White introduced Bill Morgan of White Nelson Diehl Evans who is in attendance tonight and available to answer questions. Mr. White indicated that the Board Audit Ad Hoc Committee reviewed this item and concluded that the Sanitation District is appropriately following the California Public Contract Code and Sanitation District Purchasing Policies and Procedures in administering its capital improvement project contracts. MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Accountants' Report on Agreed-Upon Procedures Review on Capital Improvement Project Contracts. AYES: NOES: 10/12/2016 Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Kring, Nielsen, and Peterson (Alternate) None Administration Committee Minutes Page 3 of 5 ) ABSTENTIONS: None ABSENT: Neugebauer, )Parker, Sebourn, T. Smith, and Tinajero 6. INVEST AND/OR REINVEST DISTRICT'S FUNDS (Lorenzo Tyner) Mr. Tyner provided a brief introduction of this item and Mr. White provided a recap of th is item. Board Vice-Chair Sebourn arrived at 5:06 p.m. Mr. White and Mr. Tyner responded to questions from the Committee regarding our consulting firm, return rates on the Sanitation District's investments, and the security of the Sanitation District's investments. Committee Chair Keith Curry and Board Chair John Nielsen also addressed questions regarding the security of investments. 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 District's Treasurer to Invest and/or Reinvest District's Funds; Adopting District's Investment Policy Statement and Performance Benchmarks; and Repealing Resolution No. OCSD 15-25." AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Kring, Nielsen, Sebourn, and Peterson (Alternate) NOES: None ABSTENTIONS: None ABSENT: Neugebauer, Parker, T. Smith, and Tinajero 7. ELIMINATION OF UNFUNDED ACTUARIAL ACCRUED LIABILITY WITHIN THE ORANGE COUNTY EMPLOYEES' RETIREMENT SYSTEM (Lorenzo Tyner) Mr. Tyner provided an overview of this item and responded to a question from the Committee indicating that payment would be made from reserves. Mr. Tyner also addressed the possibility of creating a stabilization fund. MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Direct staff to pay off the Orange County Sanitation District's unfunded actuarial accrued pension liability (UAAL) in its defined pension plan administered by the Orange County Employees Retirement System (OCERS) in an amount not to exceed $40 million. AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Kring, Nielsen, Sebourn, and Peterson (Alternate) NOES: None ABSTENTIONS: None ABSENT: Neugebauer, Parker, T. Smith, and Tinajero 10/12/2016 Administration Committee Minutes Page 4 of 5 INFORMATION ITEMS: 8. ORANGE COUNTY SANITATION DISTRICT BIOSOLIDS PROGRAM (James Colston) Director of Environmental Services Jim Colston provided a PowerPoint presentation on the Sanitation District's Biosolids Program, which included the history of the program, the production trends, and Master Plan overview. Mr. Colston responded to questions from the Committee regarding how Irvine Ranch Water District will be processing biosolids, payment from haulers for incoming waste, and where the outgoing biosolids are delivered . The future of the biosolids program was briefly discussed in relation to co-composting with Orange County Waste & Recycling and the future of the biosolids program as it relates to possible new technologies such as AquaCritox . CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IFANY: Chair Curry reminded the Committee about the State of the District event being held on Friday, October 14th at 8:00 a.m . ADJOURNMENT: Committee Chair Curry declared the meeting adjourned at 5:49 p.m. to the next regularly scheduled meeting of Wednesday, November 9, 2016 at 5:00 p.m. Submitted by: r~~ Tina Knapp Deputy Clerk of the Board 10/12/2016 Administration Committee Minutes Page 5 of 5