HomeMy WebLinkAbout06-12-2019 Administration Committee MinutesMINUTES OF THE
ADMINISTRATION COMMITTEE
Orange County Sanitation District
Wednesday, June 12, 2019 at 5:00 P.M.
A regular meeting of the Administration Committee of the Orange County Sanitation
District was called to order by Committee Vice-Chairman Richard Murphy on
June 12, 2019 at 5:00 p.m. in the Administration Building of the Orange County Sanitation
District. Director Mark Murphy led the Flag Salute.
A quorum was declared present as follows:
COMMITTEE MEMBERS PRESENT:
Richard Murphy, Vice-Chairman
James Ferryman
Cecilia Iglesias
Peter Kim
Mark Murphy
Steve Nagel
Andrew Nguyen
Glenn Parker
Erik Peterson
Christina Shea
David Shawver, Board Chairman
John Withers, Board Vice-Chairman
COMMITTEE MEMBERS ABSENT:
Chad Wanke, Chairman
PUBLIC COMMENTS:
None.
STAFF PRESENT:
Jim Herberg, General Manager
Lorenzo Tyner, Assistant General Manager
Celia Chandler, Director of Human Resources
Kathy Millea, Director of Engineering
Lan Wiborg, Director of Environmental Services
Kelly Lore, Clerk of the Board
Bob Bell
Jennifer Cabral
Lisa Frigo
Al Garcia
Ted Gerber
Brad Hamilton
Heidi Janz
Mark Kawamoto
Laura Maravilla
Joshua Martinez
Tom Meregillano
Jeff Mohr
Victoria Pilko
Tyler Ramirez
Wally Ritchie
Roya Sohanaki
John Swindler
Eros Yong
Paula Zeller
OTHERS PRESENT:
Brad Hogin, General Counsel
Dennis Mulqueeney, Alliant
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REPORTS:
Vice-Chair Murphy did not provide a report.
General Manager Jim Herberg stated that a Strategic Planning Survey had been emailed
to all Board Members for their input.
CONSENT CALENDAR:
1. APPROVAL OF MINUTES (Clerk of the Board)
MOVED. SECONDED. AND DULY CARRIED TO: Approve Minutes of the
May 8, 2019 Administration Committee Meeting.
AYES:
NOES:
ABSTENTIONS:
ABSENT:
Ferryman, Iglesias, Kim, M. Murphy,
Nguyen, Parker, Peterson, Shawver
None
None
Shea, Wanke and Withers
R. Murphy, Nagel,
2. FY 2019-20 USE CHARGES FOR SANTA ANA WATERSHED PROJECT
AUTHORITY (Lorenzo Tyner)
MOVED. SECONDED. AND DULY CARRIED TO: Recommend to the Board of
Directors to: Adopt Resolution No. OCSD 19-XX, entitled: "A Resolution of the
Board of Directors of the Orange County Sanitation District Establishing Use
Charges for the 2019-20 Fiscal Year Pursuant to the Wastewater Treatment and
Disposal Agreement with the Santa Ana Watershed Project Authority ("SAWPA")".
AYES:
NOES:
ABSTENTIONS:
ABSENT:
Ferryman, Iglesias, Kim, M. Murphy,
Nguyen, Parker, Peterson, Shawver
None
None
Shea, Wanke and Withers
R. Murphy, Nagel,
3. ENVIRONMENTAL REGULATORY REPORTS (Lan Wiborg)
MOVED. SECONDED. AND DULY CARRIED TO: Recommend to the Board of
Directors to: Receive and file environmental regulatory reports: Biosolids
Management Compliance Report 2018; Annual Pretreatment Program Report
Fiscal Year 2017-2018; Semi-Annual Pretreatment Program Report Fiscal Year
2018-2019 (July-December); Annual Greenhouse Gas Emissions Report 2018;
Annual Emission Report 2018; and Marine Monitoring Annual Report 2017/2018.
AYES:
NOES:
06/12/2019
Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel,
Nguyen, Parker, Peterson, Shawver
None
Administration Committee Minutes Page 2of7
ABSTENTIONS: None
ABSENT: Shea, Wanke and Withers
4. PHYSICAL SECURITY ACCESS SYSTEM (Lorenzo Tyner)
MOVED. SECONDED. AND DULY CARRIED TO: Authorize an additional
$108,980 to Purchase Order No. 106467-08 with Maxim Security Systems to
service the card access, surveillance cameras, and intercom systems, and to
maintain physical security systems in accordance with the terms and conditions of
Bid Specification No. S-2018-983, for a total amount not to exceed $198,980 for
the period ending October 22, 2019.
AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel,
Nguyen, Parker, Peterson, Shawver
NOES: None
ABSTENTIONS: None
ABSENT: Shea, Wanke and Withers
Director Shea arrived at the meeting at 5:03 p.m.
Board Vice-Chair John Withers arrived at the meeting at 5:16 p.m.
NON-CONSENT:
5. 2019-20 OPERATIONAL PROPERTY-LIABILITY INSURANCE RENEWALS
(Celia Chandler)
Director of Human Resources Celia Chandler provided a brief overview of the item
and introduced Dennis Mulqueeney, broker from Aliant, who provided a
PowerPoint presentation which included information regarding: current state of the
insurance market; insurance marketing activities in Property & Liability and Excess
Workers' Compensation; OCSD historic rates and an overview of the renewal not
to exceed costs. Mr. Mulqueeney responded to questions regarding: probable
premium estimates; reductions to premiums; alternative dispute resolution; recent
asset values up to 2.147 billion; self-insurance retentions (SIR); admitted v. non-
admitted carriers; rating of carriers; and deductibles v. SIR.
MOVED. SECONDED. AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Approve the Orange County Sanitation District FY 2019-20 Operational
Property-Liability Insurance Renewals for the not-to-exceed amounts
specified below:
• Excess General Liability Insurance -Not to Exceed $515,371;
• Property and Boiler & Machinery -Not to Exceed $837 ,230;
• Earthquake Insurance -Not to Exceed $86,585; and
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• Excess Workers' Compensation Insurance -a rate of $0.3120 per
$100 of payroll-Not to Exceed $218,000; and
B. Provide an analysis of pricing and different retentions within six months.
AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel,
Nguyen, Parker, Peterson, Shawver, Shea and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Wanke
6. FLEET MANAGEMENT INFORMATION SYSTEM (Lorenzo Tyner)
Assistant General Manager Lorenzo Tyner provided a brief description of the item.
MOVED. SECONDED. AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Award a Professional Consultant Services Agreement to Total Resource
Management, Inc. for the procurement of software and services to
implement and configure the Transportation Module for Enterprise Asset
Management System (IBM Maximo), Specification No. CS-2018-1003BD,
for a total amount not to exceed $424, 101; and
B. Approve a contingency of $42,410 (10%).
AYES: Ferryman, Iglesias, Kim, R. Murphy, Nagel, Nguyen, Parker,
Peterson, Shawver, Shea and Withers
NOES: None
ABSTENTIONS: M. Murphy
ABSENT: Wanke
7. INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY CONTRACT -
BIOSOLIDS MANAGEMENT (Lan Wiborg)
Director of Environmental Services Lan Wiborg provided a brief description of the
item.
MOVED. SECONDED. AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Approve Agreement number 4600002709-HD with the Inland Empire
Regional Composting Authority (IERCA) for the Orange County Sanitation
District (Sanitation District) to pay IERCA to receive and compost up to
approximately 50 wet tons per day of the Sanitation District's biosolids at a
base fee (tipping fee) of $56 per wet ton, plus an administrative fee of $2
per wet ton, and an annual base fee increase of $1 per fiscal year, with a
term of the Agreement of five (5) years and, upon mutual written agreement,
an option to extend on a year-to-year basis with up to two (2) annual
extensions in a total annual amount not to exceed $820,000 per year; and
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B. Approve a 10% contingency of $400,000 in the event the Sanitation District
needs to send additional loads to this compost option.
AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel,
Nguyen, Parker, Peterson, Shawver, Shea and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Wanke
INFORMATION ITEMS:
8. DIGESTER GAS FACILITIES REHABILITATION, PROJECT NO. J-124
(Kathy Millea)
Director of Engineering Kathy Millea provided a PowerPoint presentation that
reviewed the project and the preliminary design report including: Project
objectives; construction cost estimates; project budget changes; total Cl P budget
authority; and top budget increases. Ms. Millea and Mr. Herbert responded to
questions regarding alternatives to the projects.
NON-CONSENT:
9. PROPOSED FY 2019-20 BUDGET UPDATE (Lorenzo Tyner)
Mr. Tyner provided a brief update of the Budget process and introduced Controller
Wally Ritchie who provided PowerPoint presentation which included an overview
of revenue, expenses, CIP, and debt service. Mr. Ritchie stated that the Budget
Update contains an errata sheet which includes an increase to the operating units
and a few minor corrections made after the publication of the budget book. Mr.
Ritchie and Mr. Tyner responded to questions regarding the allocation for
rehabilitation/replacement.
MOVED. SECONDED. AND DULY CARRIED TO: Recommend to the Board of
Directors to: Approve proposed Operating, Capital, Debt/COP Service, and Self-
Insurance Budgets for FY 2019-20 as follows:
06/12/2019
Operations & Maintenance
Net Capital Improvement Program
Allocation for Rehabilitation/Replacement
Debt/COP Service
General Liability and Property Self-Insurance
Worker's Compensation Self Insurance
Intra-District Joint Equity Purchase/Sale<1>
TOTAL
Adopted
Budget
FY 2019-20
$160,204,370
137,027,258
0
79,956,000
780,000
1,750,000
3,500,000
$383,217 ,628
Administration Committee Minutes
Proposed
Budget
FY 2019-20
$168,216,487
153,377A31
200,000,000
76,775,000
780,000
1,750,000
5,000,000
$605,848,918
Page 5of7
<1>cash to/from Revenue Area 14 {RA 14) in exchange for capital assets to/from Consolidated
Revenue Area 15 (RA 15).
AYES:
NOES:
ABSTENTIONS:
ABSENT:
Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel,
Nguyen, Parker, Peterson, Shawver, Shea and Withers
None
None
Wanke
10. GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2019-20
(Lorenzo Tyner)
Mr. Tyner provided a brief description of the item.
MOVED. SECONDED. AND DULY CARRIED TO: Recommend to the Board of
Directors to: Adopt Resolution No. OCSD 19-XX, entitled: "A Resolution of the
Board of Directors of the Orange County Sanitation District Establishing the Annual
Appropriations Limit for Fiscal Year 2019-20 for the District in accordance with the
Provisions of Division 9 of Title 1 of the California Government Code".
AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel,
Nguyen, Parker, Peterson, Shawver, Shea and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Wanke
INFORMATION ITEMS:
11. ORANGE COUNTY SANITATION DISTRICT ENVIRONMENTAL SERVICES
RESOURCE PROTECTION (Lan Wiborg)
Lan Wiborg, Director of Environmental Services, provided an informative
PowerPoint presentation that included: an overview of the divisions within
Environmental Services Department; resource recovery at OCSD; OCSD source
control; an overview of the Clean Water Act; an overview of an industrial user
(definition and requirements); and non-industrial source control and the urban
runoff program. Roya Sohanaki, Engineering Manager, presented information on
the awards received by the OCSD program and an overview of the effectiveness
of the source control program.
DEPARTMENT HEAD REPORTS:
None.
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OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IFANY:
None.
ADJOURNMENT:
Vice-Chair Murphy declared the meeting adjourned at 5:45 p.m. to the Special meeting
to be held on Wednesday, July 17, 2019 at 5:00 p.m.
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