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Home My WebLink About05-10-2017 Administration Committee MinutesMINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, May 10, 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 May 10, 2017 at 5:01 p.m. in the Administration Building of the Orange County Sanitation District. Committee Chair Wanke led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: Chad Wanke, Chair Donald P. Wagner, Vice-Chair Cheryl Brothers (Alternate) Barbara Delgleize Jim Ferryman Peter Kim Al Krippner Scott Peotter Teresa Smith Greg Sebourn, Board Chair David Shawver, Board Vice-Chair COMMITTEE MEMBERS ABSENT: Glenn Parker 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 Tina Knapp, Deputy Clerk of the Board Jennifer Cabral Al Garcia Randy Kleinman Kathy Millea Jeff Mohr Man Nguyen John Swindler Mike White Paula Zeller OTHERS PRESENT: Brad Hogin, General Counsel Committee Chair Wanke did not provide a report. 05/10/2017 Administration Committee Minutes Page 1of5 REPORT OF GENERAL MANAGER: General Manager Jim Herberg reminded the Committee of the Honor Walk celebration on May 24, 2017 at 4:00 p.m. Mr. Herberg also indicated that this week is Municipal Clerks Week and recognized the OCSD Clerk and Deputy Clerk. Board Chair Sebourn introduced Alternate Director Jesus Silva from the City of Fullerton who is in attendance to observe tonight's meeting. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services Lorenzo Tyner advised the Committee that the budget will be presented to the Board of Directors in June for adoption. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED AND DULY CARRIED TO: Approve Minutes of the April 12, 2017 Administration Committee Meeting. AYES: Brothers (Alternate), Delgleize, Ferryman, Kim, Krippner, Peotter, T. Smith, Sebourn, Shawver, Wagner, and Wanke None NOES: ABSTENTIONS: None ABSENT: Parker and Tinajero 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: A. Receive and file Orange County Sanitation District purchases made under the General Manager's authority for the period of January 1, 2017 -March 31,2017;and B. Approve the following additions to the pre-approved Original Equipment Manufacturer (OEM) Sole Source List: • ALFA-LA VAL -Pumps and Parts • CHEMINEER -Mixers • HARTZELL -Exhaust fans • VERDERFLEX -Pumps and Parts • WOODWARD -Engine and Turbine Systems 05/10/2017 Administration Committee Minutes Page 2 of 5 AYES: NOES: ABSTENTIONS: ABSENT: Brothers (Alternate), Delgleize, Ferryman, Kim, Krippner, Peotter, T. Smith, Sebourn, Shawver, Wagner, and Wanke None None Parker and Tinajero 3. CONSOLIDATED FINANCIAL REPORT FOR THIRD QUARTER ENDED MARCH 31, 2017 (Lorenzo Tyner) MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District Third Quarter Financial Report for the period ended March 31, 2017. AYES: NOES: ABSTENTIONS: ABSENT: Brothers (Alternate), Delgleize, Ferryman, Krippner, Peotter, T. Smith, Sebourn, Shawver, Wagner, and Wanke None Kim Parker and Tinajero 4. IBM TIVOLI MAXIMO AND WEBSPHERE (ENTERPRISEONE) ANNUAL SUBSCRIPTION AND SUPPORT (Lorenzo Tyner) MOVED, SECONDED AND DULY CARRIED TO: A. Approve an Annual Purchase Order Contract with Carahsoft Technology Corporation for the Renewal of Software Licensing and Maintenance Agreement for IBM Maximo and WebSphere using GSA Contract GS35F0119Y, for an amount not to exceed $158,637; and B. Approve a contingency of $15,864, (10%) AYES: NOES: ABSTENTIONS: ABSENT: Brothers (Alternate), Delgleize, Ferryman, Kim, Krippner, Peotter, T. Smith, Sebourn, Shawver, Wagner, and Wanke None None Parker and Tinajero 5. WORKERS' COMPENSATION THIRD PARTY ADMINISTRATION PROGRAM (Celia Chandler) MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve an additional one-year renewal period of the agreement with Keenan and Associates, for Workers' Compensation Third Party Administration Program, for the period of July 1, 2017 through June 30, 2018, for a total amount not to exceed $48,000. 05/10/2017 Administration Committee Minutes Page 3 of 5 AYES: Brothers (Alternate), Delgleize, Ferryman, Kim, Krippner, Peotter, T. Smith, Sebourn, Shawver, Wagner, and Wanke NOES: None ABSTENTIONS: None ABSENT: Parker and Tinajero NON-CONSENT: 6. 2017-18 OPERATIONAL PROPERTY-LIABILITY INSURANCE RENEWALS (Celia Chandler) Director of Human Resources Celia Chandler provided an overview of this item and indicated that Gordon Descombes from Alliant is in attendance this evening to answer any questions. Mr. Descombes responded to a question from the Committee regarding Workers Compensation rates, which have decreased this year. Mr. Descombes responded to a question inquiring as to whether new lines of insurance are monitored, indicating that staff continually monitors the marketplace and ensures that OCSD has the needed and appropriate insurance coverages. Mr. Herberg indicated that earthquake insurance is a relatively new insurance line of coverage added to OCSD's portfolio. MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve not-to-exceed numbers as follows, with the understanding that the Orange County Sanitation District's insurance broker will continue to negotiate with insurers to seek the lowest possible premiums prior to the expiration date of the current major insurance policies: • Excess liability insurance from $405, 126 to $445,639. • Property and Boiler & Machinery combined from $665,813 to $677,628. • Earthquake insurance -from $76,385 to $78,062. • Excess workers' compensation insurance - a rate of $0.3133 per $100 of payroll not to exceed $208,000. AYES: NOES: ABSTENTIONS: ABSENT: INFORMATION ITEMS: Brothers (Alternate), Delgleize, Ferryman, Kim, Krippner, Peotter, T. Smith, Sebourn, Shawver, Wagner, and Wanke None None Parker and Tinajero 7. CAPITAL IMPROVEMENT PROGRAM (CIP) UPDATE FOR FY 2017/18 (Rob Thompson) Mr. Thompson introduced Kathy Millea, Engineering Manager (engineering planning section), who provided an informative PowerPoint presentation that included an overview of the Capital Improvement Program (GIP) and information 05/10/2017 Administration Committee Minutes Page 4 of 5 on how CIP projects are generated, CIP spending , the annual budget update process, asset management and condition assessment programs, the project validation process, top budget increases, newly defined programs, FY 2017 -18 net CIP outlay, and FY 2017-18 CIP highlights. Staff responded to questions from the Committee regarding specific capital expenses/projects. Mr . Tyner indicated that the budget includes a 10-year plan summary, including an analysis of revenues and expenditures, and that the reserves analysis is completed annually and is included in the budget document that the Board of Directors will receive in June as part of the budget approval process. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IFANY: Staff advised the Committee that a private lift station in the Huntington Beach area recently failed and resulted in a sewage spill and beach closure (south of the Santa Ana River to north of the Talbert Marsh). This was a private lift station, from which sewage does not flow into the OCSD system. Ed Torres, Director of Operations & Maintenance, provided an update on the recent gas odor at the Rocky Point Pump Station in Newport Beach and indicated that the pump station is back online and that the source of the odor was identified and repaired. Committee Chair Wanke acknowledged the return of Board Vice -Chair David Shawver , who, in turn , thanked everyone for their well-wishes. ADJOURNMENT: Committee Chair Wanke declared the meeting adjourned at 5:33 p.m. to the next regularly scheduled meeting of Wednesday, June 14 , 2017 at 5:00 p .m. Submitted by: ·TW-tv~o~ Tina Knapp, CMC Deputy Clerk of the Board 05/10/2017 Administration Committee Minutes Page 5 of 5