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HomeMy WebLinkAbout11-09-2016 Administration Committee MinutesMINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, November 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 Chairman Curry on November 9, 2016 at 5:00 p.m. in the Administration Building of the Orange County Sanitation District. Chairman Curry led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: Keith Curry, Chair Lucille Kring, Vice-Chair Jim Ferryman Jim Katapodis Peter Kim Greg Mills Joy Neugebauer John Nielsen, Board Chair Greg Sebourn, Board Vice-Chair COMMITTEE MEMBERS ABSENT: Steven Choi 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 Ed Torres, Director of Operations & Maintenance Lorenzo Tyner, Director of Finance & Administrative Services Kelly Lore, Clerk of the Board Eddie Baker Elvia Harvey Al Garcia Rebecca Long Mark Manzo Kathy Millea Man Nguyen Steve Speakman John Swindler Mike White OTHERS PRESENT: Brad Hogin, General Counsel Committee Chairman Curry did not provide a report. 11/09/2016 Administration Committee Minutes Page 1 of 5 REPORT OF GENERAL MANAGER: General Manager Jim Herberg did not provide a report. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: In response to questions posed in previous meetings, Director of Finance and Administrative Services Lorenzo Tyner stated that at the time of purchase, the investment with Lehman Brothers was appropriate under our investment policy. The new investment policy would not allow the same today. He then presented a slide illustrating the average benchmark of our portfolio vs. probable investment in CD's for the same 15-year period. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED AND DULY CARRIED TO: Approve Minutes of the October 12, 2016 Administration Committee Meeting. AYES: Curry, Ferryman, Katapodis, Kim, Kring, Mills, Neugebauer and Sebourn NOES: None ABSTENTIONS: None ABSENT: Choi, Nielsen, Parker, T. Smith, and Tinajero 2. 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 July 1, 2016 -September 30, 2016. AYES: Curry, Ferryman, Katapodis, Kim, Kring, Mills, Neugebauer and Sebourn NOES: None ABSTENTIONS: None ABSENT: Choi, Nielsen, Parker, T. Smith, and Tinajero 3. IBM MAXIMO EMERGENCY AND LEVEL 3 SUPPORT (Lorenzo Tyner) MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Authorize a sole source purchase order agreement with Total Resource Management (TRM) for Maximo Emergency and Level 3 Support for one year commencing January 1, 2017 through December 31, 2017 for a total amount not to exceed $160,000. 11/09/2016 Administration Committee Minutes Page 2 of 5 B. Authorize an option for three annual renewals at $160,000 per year for a total amount of $480,000. AYES: Curry, Ferryman, Katapodis, Kim, Kring, Mills, Neugebauer and Sebourn NOES: None ABSTENTIONS: None ABSENT: Choi, Nielsen, Parker, T. Smith, and Tinajero 4. CONSOLIDATED FINANCIAL REPORT FOR FIRST QUARTER ENDED SEPTEMBER 30, 2016 (Lorenzo Tyner) 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, 2016. AYES: Curry, Ferryman, Katapodis, Kim, Kring, Mills, Neugebauer and Sebourn NOES: None ABSTENTIONS: None ABSENT: Choi, Nielsen, Parker, T. Smith, and Tinajero NON-CONSENT: 5. WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2017A (Lorenzo Tyner) Mr. Tyner introduced Controller Mike White who provided a brief overview of this item. 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 2017A, in an amount sufficient to refund up to $91,620,000 of COP Series 2007 A. AYES: Curry, Ferryman, Katapodis, Kim, Kring, Mills, Neugebauer and Sebourn NOES: None ABSTENTIONS: None ABSENT: Choi, Nielsen, Parker, T. Smith, and Tinajero Board Chairman John Nielsen arrived at the meeting at 5:04 p.m. 11/09/2016 Administration Committee Minutes Page 3 of 5 6. ORANGE COUNTY SANITATION DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR THE YEAR END JUNE 30, 2016 (Lorenzo Tyner) Mr. White presented an informative PowerPoint regarding the CAFR including: financial measurement; the net position over the prior year; changes in net assets in the last five years; decreased cash and investments; and collection, treatment, and disposal costs in comparison to budget. Mr. White then introduced auditor Peter George, MGO, who provided a presentation and distributed a handout regarding: responsibilities of the Auditor; deliverables; communications with the Administration Committee and stated there were no major issues encountered and no material weaknesses or significant deficiencies noted for FY 15/16. MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District's Comprehensive Annual Financial Report for the year ended June 30, 2016, prepared by staff and audited by Macias Gini & O'Connell LLP (MGO), Certified Public Accountants, along with the following reports prepared by MGO: A. Report to the Board of Directors; and B. Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets. AYES: Curry, Ferryman, Katapodis, Kim, Kring, Mills, Neugebauer, Nielsen and Sebourn NOES: None ABSTENTIONS: None ABSENT: Choi, Parker, T. Smith, and Tinajero INFORMATION ITEMS: 7. ORANGE COUNTY SANITATION DISTRICT TREATMENT PLANT OVERVIEW (Ed Torres) Director of Operations and Maintenance Ed Torres introduced Operations Supervisor Eddie Baker who provided an informative PowerPoint presentation on the Sanitation District's treatment plant operations, including an overview of the 2015-16 treatment plant operating expenses, future flows for the Groundwater Replenishment System, and maintenance efforts. 8. ORANGE COUNTY SANITATION DISTRICT SEWER SERVICE CHARGES - REBATES (Lorenzo Tyner) Mr. Tyner provided a brief PowerPoint presentation on the Rebate of paid Sewer Service charges application process. 11/09/2016 Administration Committee Minutes Page 4 of 5 CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Committee Chair Curry congratulated those that had successfully been reelected to their agencies, and said goodbye to those Committee members who would not be returning to OCSD . He stated that it had been an honor to work with the group . ADJOURNMENT: Committee Chair Curry declared the meeting adjourned at 5:49 p .m. to the next regularly scheduled meeting of Wednesday, January 11, 2017 at 5 :00 p.m . Submitted by : 11/09/2016 Administration Committee Minutes Page 5 of 5