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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, 02/14/2018 Administration Committee Minutes Page 1 of 6 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 02/14/2018 Administration Committee Minutes Page 2 of 6 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 02/14/2018 Administration Committee Minutes Page 4 of 6 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 02/14/2018 Administration Committee Minutes Page 5 of 6 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: 02/14/2018 Administration Committee Minutes Page 6 of 6