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Home My WebLink About02-08-2017 Administration Committee MinutesMINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, February 8, 2017 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 Wanke on February 8, 2017 at 5:04 p.m. in the Administration Building of the Orange County Sanitation District. Board Chair Sebourn led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: Chad Wanke, Chair Robert Collacott Barbara Delgleize Jim Ferryman Peter Kim Al Krippner Teresa Smith Scott Peotter Sal Tinajero Greg Sebourn, Board Chair David Shawver, Board Vice-Chair COMMITTEE MEMBERS ABSENT: Donald P. Wagner, Vice-Chair 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 Jim Colston, Director of Environmental Services Rob Thompson, Director of Engineering Ed Torres, Director of Operations & Maintenance Lorenzo Tyner, Director of Finance & Administrative Services Tina Knapp, Deputy Clerk of the Board Curtis Buonacorsi Jennifer Cabral Rhea de Guzman Al Garcia Mark Kawamoto Mark Manzo Roya Sohanaki John Swindler Mike White OTHERS PRESENT: Denise Barnes, Director, Anaheim Brad Hagin, General Counsel Bill Dennehy, Chandler Asset Management Committee Chairman Wanke did not provide a report. 02/08/2017 Administration Committee Minutes Page 1 of 5 REPORT OF GENERAL MANAGER: General Manager Jim Herberg indicated that staff would like to pull Item 3 from the Consent Calendar so that staff could provide additional information and an overview of the item. Chair Wanke indicated he also intended to pull the item. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services Lorenzo Tyner introduced John Swindler and congratulated Mr. Swindler on his promotion to IT Manager. Director T. Smith arrived at the meeting at 5:06 p.m. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED AND DULY CARRIED TO: Approve Minutes of the November 9, 2016 Administration Committee Meeting. AYES: Collacott, Delgleize, Ferryman, Kim, T. Smith, Tinajero, Sebourn, and Wanke NOES: ABSTENTIONS: ABSENT: None Shawver and Peotter Krippner, Parker, and Wagner 2. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST (Lorenzo Tyner) MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District purchases made under the General Manager's authority and additions to the pre-approved OEM Sole Source List for the period of October 1, 2016 -December 31, 2016. AYES: Collacott, Delgleize, Ferryman, Kim, Peotter, Shawver, T. Smith, Tinajero, Sebourn, and Wanke NOES: None ABSTENTIONS: None ABSENT: Krippner, Parker, and Wagner Item No. 3 was pulled for separate consideration. 3. MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD ENDED DECEMBER 31, 2016 (Lorenzo Tyner) MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file Orange County Sanitation District Mid-Year Report for the period ended December 31, 2016. 02/08/2017 Administration Committee Minutes Page 2 of 5 Controller Mike White provided an overview of the Mid-Year Financial Report and indicated that copies of the Report are available for Directors who would like a copy. Mr. White and Mr. Tyner responded to questions from the Committee regarding economy of scale as to how the Sanitation District compares to other like-agencies. AYES: Collacott, Delgleize, Ferryman, Kim, Peotter, Shawver, T. Smith, Tinajero, Sebourn, and Wanke NOES: None ABSTENTIONS: None ABSENT: Krippner, Parker, and Wagner INFORMATION ITEMS: 4. INVESTMENT PERFORMANCE RESULTS (Lorenzo Tyner) Mr. Tyner introduced this item and invited Bill Dennehy, Chandler Asset Management, to provide further information on this item. Mr. Dennehy distributed an Investment Report document to the Committee and reviewed the document with the Committee, providing a brief overview of each page of the document. This overview included an overview of Chandler Asset Management, the account profile long term portfolio, and the account profile liquid portfolio. Mr. Dennehy responded to questions from the Committee regarding the long term portfolio. Mr. White responded to a question from the Committee regarding the State of California Local Agency Investment Fund (LAIF). NON-CONSENT: 5. CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR FOR PREPARATION OF THE FY 2017-18 BUDGET UPDATE (Lorenzo Tyner) Mr. Tyner introduced this item and Mr. White provided an informative PowerPoint presentation. Mr. White's presentation reviewed the development of the budget assumptions; the comparison of single family residential rates; assumptions made regarding operations, staffing, capital improvement program, and debt financing; a budget summary; and key meeting dates in the budget calendar. Mr. Tyner and Mr. White responded to questions regarding Certificates of Participation and aspects of the Capital Improvement Program (CIP) as related to acquisitions. Staff indicated that the CIP and future revenues will be reviewed in the near future. Mr. Herberg indicated that the current rate structure expires in July 2018. At the request of the Committee, information pertaining to reserves and how reserves are allocated will be presented in the near future. MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve the FY 2017-18 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2017-18 budget update. 02/08/2017 Administration Committee Minutes Page 3 of 5 A YES: Collacott, Delgleize, Ferryman, Kim, Peotter, Shawver, T. Smith, Tinajero, Sebourn, and Wanke NOES: None ABSTENTIONS: None ABSENT: Krippner, Parker, and Wagner 6. COOPERATIVE PROCUREMENT AGREEMENTS WITH U.S. COMMUNITIES GOVERNMENT PURCHASING ALLIANCE AND NATIONAL ASSOCIATION OF STATE PROCUREMENT OFFICIALS VALUEPOINT COOPERATIVE PURCHASING ORGANIZATION (Lorenzo Tyner) Mr. Tyner provided an overview of this item and indicated that this would typically be presented on the Consent Calendar; however, due to the dollar amount felt it warranted separate explanation. This agreement allows a larger economy of scale; however, if items of this nature are purchased, the required processes, including Committee and Board review, are followed. MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Authorize the purchasing of information technology products, services, and solutions utilizing the U.S. Communities Government Purchasing Alliance and National Association of State Procurement Officials ValuePoint Cooperative Purchasing Organization (NASPO ValuePoint) for the period of March 1, 2017 through February 29, 2020 for a total amount not to exceed $6,000,000, in accordance with Ordinance No. OCSD-47, Section 2.03(B) Cooperative Purchases. AYES: Collacott, Delgleize, Ferryman, Kim, Peotter, Shawver, T. Smith, Tinajero, Sebourn, and Wanke NOES: None ABSTENTIONS: None ABSENT: Krippner, Parker, and Wagner INFORMATION ITEMS: 7. ORANGE COUNTY SANITATION DISTRICT ENVIRONMENTAL SERVICES RESOURCE PROTECTION (Jim Colston) Director of Environmental Services Jim Colston provided an informative PowerPoint presentation on the Sanitation District's Environmental Services department, including a review of OCSD's resources, the Clean Water Act, managing sources of pollutants throughout Orange County before they enter the sewage collection system, industrial users, effectiveness of the permit program, non-industrial source control, diversion locations, protection of the Groundwater Replenishment System, and awards received by OCSD for its efforts in environmental protection. Mr. Colston responded to questions from the Committee regarding dental practice regulations and requirements and how sewage spills are handled. Ed Torres, Director of Operations and Maintenance, provided specifics regarding a recent sewage spill in Newport Beach. Director Shawver provided 02/08/2017 Administration Committee Minutes Page 4 of 5 additional information regarding the spill, indicating that the line is scheduled for repair and staff is awaiting the permit from CalTrans . Director Krippner arrived at the meeting at 5:50 p.m . 8. ORANGE COUNTY SANITATION DISTRICT STORM UPDATE (Ed Torres) Director of Operations and Maintenance Ed Torres provided a PowerPoint presentation that provided an overview of the wastewater collection system, high flow color code system, and the recent rain events and OCSD's response to the events. CLOSED SESSION: None . OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None . ADJOURNMENT: Committee Chair Wanke declared the meeting adjourned at 6:33 p.m . to the next regularly scheduled meeting of Wednesday, March 8, 2017 at 5:00 p.m. Submitted by: TUV4V~~ Tina Knapp Deputy Clerk of the Board 02/08/2017 Administration Committee Minutes Page 5 of 5