HomeMy WebLinkAbout02-14-2018 Administration Committee MinutesMINUTES OF THE
ADMINISTRATION COMMITTEE
Orange County Sanitation District
Wednesday, February 14, 2018 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 14, 2018 at
5:04 p.m. in the Administration Building of the Orange County Sanitation District. Director
Mike Posey led the Flag Salute.
A quorum was declared present as follows:
COMMITTEE MEMBERS PRESENT:
Chad Wanke, Chairman
Jim Ferryman
Peter Kim
Al Krippner (Alternate)
Steve Nagel
Glenn Parker
Scott Peotter
Mike Posey
Teresa Smith
Greg Sebourn, Board Chairman
David Shawver, Board Vice-Chairman
COMMITTEE MEMBERS ABSENT:
Donald P. Wagner, Vice-Chairman
Sal Tinajero
PUBLIC COMMENTS:
None.
REPORTS:
STAFF PRESENT:
Jim Herberg, General Manager
Bob Ghirelli, Assistant General Manager
Rob Thompson, Director of Engineering
Celia Chandler, Director of Human Resources
Jim Colston, Director of Environmental
Services
Ed Torres, Director of Operations &
Maintenance
Lorenzo Tyner, Director of Finance &
Administrative Services
Kelly Lore, Clerk of the Board
Jennifer Cabral
Rhea De Guzman
Al Garcia
Ddaze Phuong
Tyler Ramirez
Mike White
OTHERS PRESENT:
Brad Hogin, General Counsel
Bill Dennehy, Chandler Asset Management
General Manager Jim Herberg reported on the following: OCSD Administrative Offices
will be closed on Monday, February 19 in observance of President's Day; and provided
information regarding the GWRS 1 oth Anniversary Winterfest event this Friday,
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February 16 and the State Assembly and Senate Floor Recognition for the GWRS 1Q1h
Anniversary on February 26.
Committee Chair Wanke did not provide a report.
CONSENT CALENDAR:
1. AP PROV AL OF MINUTES (Clerk of the Board)
MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the
December 13, 2017 Administration Committee Meeting.
AYES: Ferryman, Kim, Krippner (Alternate), Nagel, Parker, Peotter,
Posey, Sebourn, Shawver, T. Smith and Wanke
NOES: None
ABSTENTIONS: None
ABSENT: Tinajero and Wagner
2. GM 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 District purchases made under the General Manager's
authority for the period of October 1, 2017 to December 31, 2017; and
B. Approve the following additions to the pre-approved OEM Sole Source List
for the period of October 1, 2017 to December 31, 2017:
• AMOT -Gas valves for CenGen engines
• ELECTRABOND -Coating of belt filter press rollers
• FONTAINE-AQUANOX -PVC stem covers
• INGERSOLL RAND -Air compressor valves and parts
• OVIVO -Trickling filter parts
• PULSAFEEDER -Ferric injection pumps
• QUINCY COMPRESSOR -Air compressor parts and service
• SAFT AMERICA -UPS batteries
• TIRESHARK -Traffic spikes
AYES: Ferryman, Kim, Krippner (Alternate), Nagel, Parker, Peotter,
Posey, Sebourn, Shawver, T. Smith and Wanke
NOES: None
ABSTENTIONS: None
ABSENT: Tinajero and Wagner
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Item No. 3 was pulled and heard separately.
3. MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD ENDED
DECEMBER 31, 2017 (Lorenzo Tyner)
At the request of Director Peotter, Director of Finance and Administrative Services
Lorenzo Tyner and Controller Mike White presented information regarding the
Mid-Year Financial report including: Total revenues, sewer service fee cashflow
thru December 31, Orange County property tax collection and apportionments,
Capital Improvement Program cashflow budget, debt service forecast,
self-insurance, and a basic overview of the investment portfolio.
MOVED. SECONDED, AND DULY CARRIED_I_Q: Recommend to the Board of
Directors to: Receive and file Orange County Sanitation District Mid-Year Report
for the period ended December 31, 2017.
AYES: Ferryman, Kim, Krippner (Alternate), Nagel, Parker, Peotter,
Posey, Sebourn, Shawver, T. Smith and Wanke
NOES: None
ABSTENTIONS: None
ABSENT: Tinajero and Wagner
4. ADOPT RESOLUTION ESTABLISHING AN ENVIRONMENTALLY
PREFERABLE PURCHASING AND PRACTICES POLICY
(Lorenzo Tyner)
MOVED. SECONDED. AND DULY CARRIED TO: Recommend to the Board of
Directors to: Adopt RESOLUTION NO. OCSD 18-XX entitled "Environmentally
Preferable and Practices Policy."
AYES: Ferryman, Kim, Krippner (Alternate), Nagel, Parker, Peotter,
Posey, Sebourn, Shawver, T. Smith and Wanke
NOES: None
ABSTENTIONS: None
ABSENT: Tinajero and Wagner
INFORMATION ITEMS:
5. INVESTMENT PERFORMANCE RESULTS (Lorenzo Tyner)
Mr. Tyner Introduced Investment Manager Bill Dennehy from Chandler Asset
Management who distributed an Investment Report in hard copy and provided an
informative presentation which included: Economic Update (Employment,
Inflation, Consumer Price Index and the Personal Consumption Expenditures,
Gross Domestic Product, and Bond Yields) and OCSD's account profile and how
to insulate it from the rising rate environment (Portfolio Characteristics, Sector
allocation, Long term portfolio, issuers and the portfolio compared to the
Benchmark, Compliance with investment policy, Liquidity Portfolio, treasury
allocation, and the other various securities were presented.) Mr. Dennehy
02/14/2018 Administration Committee Minutes Page 3 of 6
responded to questions regarding vulnerabilities and the conservative method of
the diversified portfolio. The Committee requested that in the future, they receive
this type of lengthy information prior to the meeting to allow further time to study.
NON-CONSENT:
'6 . CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR
FOR PREPARATION OF THE FY 2018-19 AND FY 2019-20 BUDGET TWO-
YEAR BUDGET (Lorenzo Tyner)
Mr. Tyner provided a brief overview of the item and Mr. White provided a
PowerPoint presentation regarding the Budget Assumptions including: projected
inflation, revenue, proposed SFR rate increase and a comparison to other
agencies, operations (daily flow projections and expenses), staffing levels and
salary adjustments, cash flow assumptions and baseline CIP cost, debt financing
and the percentages of revenues and expenditures in the proposed budget
summary, and reviewed the budget development key meeting dates. Mr. White
and Mr. Tyner responded to questions regarding: projected surplus vs. reserves,
cash flow models, proactive UAL payoff, future capital costs, investments, and cost
saving measures.
MOVED. SECONDED. AND DULY CARRIED TO: Recommend to the Board of
Directors to: Approve the FY 2018-19 and FY 2019-20 budget assumptions and
direct staff to incorporate these parameters in the preparation of this two-year
budget.
AYES: Ferryman, Kim, Krippner (Alternate), Nagel, Parker, Peotter,
Posey, Sebourn, Shawver, T. Smith and Wanke
NOES: None
ABSTENTIONS: None
ABSENT: Tinajero and Wagner
Director T. Smith departed the meeting at 6:05 p.m.
7. PROPOSED ORDINANCE ADOPTING REGIONAL SEWER SERVICE
CHARGES (Lorenzo Tyner)
Mr. Tyner provided a summary of the three proposed Ordinances reflected in Item
Nos. 7-9. Mr. Herberg notified the Committee that the Notice of Public Hearing
was mailed out on Friday February 9 and we anticipate public input and comment
regarding the increases, which will be provided to the Board of Directors.
MOVED. SECONDED. AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Motion to read Ordinance No. OCSD-XX by title only and waive reading of
said entire ordinance;
B. Introduce Ordinance No. OCSD-XX, entitled: "An Ordinance of the Board of
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Directors of Orange County Sanitation District Adopting Regional Sewer
Service Charges and Repealing Ordinance No. OCSD-41 and Ordinance
No. OCSD-46"; and
C. Set March 28, 2018, as the date of the Public Hearing to hear protests and
for the second reading of the Ordinance No. OCSD-XX.
AYES: Ferryman, Kim, Krippner (Alternate), Nagel, Parker, Peotter,
Posey, Sebourn, Shawver, and Wanke
NOES: None
ABSTENTIONS: None
ABSENT: T. Smith, Tinajero and Wagner
8. PROPOSED ORDINANCE ADOPTING CAPITAL FACILITIES CAPACITY
CHARGES AND FEES (Lorenzo Tyner)
Late communication was provided by the Clerk of the Board which redlined minor
changes to the Ordinance.
MOVED. SECONDED. AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Motion to Read Ordinance No. OCSD-XX by title only and waive reading of
said entire ordinance;
B. Introduce Ordinance No. OCSD-XX, entitled: "An Ordinance of the Board of
Directors of the Orange County Sanitation District Adopting Capital
Facilities Capacity Charges and Repealing Ordinances No. OCSD-40 and
No. OCSD-42"; and
C. Set March 28, 2018, as the date of the Public Hearing to hear protests and
for the second reading of the Ordinance No. OCSD-XX.
AYES: Ferryman, Kim, Krippner (Alternate), Nagel, Parker, Peotter,
Posey, Sebourn, Shawver, and Wanke
NOES: None
ABSTENTIONS: None
ABSENT: T. Smith, Tinajero and Wagner
9. PROPOSED ORDINANCE ADOPTING MISCELLANEOUS CHARGES AND
FEES RELATING TO INDUSTRIAL DISCHARGES, SOURCE CONTROL
PERMITTEES AND WASTEHAULERS (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Motion to Read Ordinance No. OCSD-XX by title only and waive reading of
said entire ordinance;
B. Introduce Ordinance No. OCSD-XX, entitled: "An Ordinance of the Board of
Directors of the Orange County Sanitation District Adopting Miscellaneous
Charges and Fees Relating to Industrial Dischargers, Source Control
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Permittees and Wastehaulers and Repealing Ordinance No. OCSD-40 and
Ordinance No. OCSD-42; and
G. Set March 28, 2018, as the date of the Public Hearing to hear protests and
for the second reading of the Ordinance No. OCSD-XX.
AYES: Ferryman, Kim, Krippner (Alternate), Nagel, Parker, Peotter,
Posey, Sebourn, Shawver, and Wanke
NOES: None
ABSTENTIONS: None
ABSENT: T. Smith, Tinajero and Wagner
INFORMATION ITEMS:
None.
DEPARTMENT HEAD REPORTS:
None.
CLOSED SESSION:
None.
OTHER BUSINESS ANO COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IFANY:
Director Peotter requested that staff hold a Budget Workshop to assist the Board with the
budget process.
ADJOURNMENT:
Committee Chair Wanke declared the meeting adjourned at 6: 11 p.m. to the next regularly
scheduled meeting of Wednesday, March 14, 2018 at 5:00 p.m.
Submitted by:
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