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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 06/12/2019 Administration Committee Minutes Page 1of7 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 06/1212019 Administration Committee Minutes Page 3of7 • 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 06/12/2019 Administration Committee Minutes Page 4of7 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. 06/1212019 Administration Committee Minutes Page 6of7 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. ~ -, .. ~---~ ... -----... _ -.. -.· ·._ -...,.. -.··.... ,... r ... ""!t .. .! --.. -'-" -·.-... ........_,, -"":-.. ... ---._--: / ---'· ----_ .... -~.. ........ ,,,,,,. -.. .:...,." ..... -..: -... -... -..... --- -/ "w ••• - 06/12/2019 ... -..... ____ ... -.. . ..... .. , ----....... --.................................. Administration Committee Minutes Page 7 of 7