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Orange County Sanitation District
MINUTES
BOARD MEETING
July 27, 2011
Administration Building
10844 Ellis Avenue
Fountain Valley, California 92708-7018
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ROLL CALL
A regular meeting of the Board of Directors of the Orange County Sanitation District was
held on July 27, 2011, at 6:30 p.m., in the Administration Building. Following the Pledge
of Allegiance and invocation, a quorum was declared present by the Clerk of the Board
as follows:
ACTIVE DIRECTORS ALTERNATE DIRECTORS
X Larry Crandall, Chair Steve Nagel
X Troy Edgar, Vice Chair Ken Stephens
A John Anderson Jim Winder
X Tom Beamish Rose Espinoza
X Joe Carchio Matthew Harper
A Bill Dalton Andrew Do
X Jon Dumitru Denis Bilodeau
X James M. Ferryman Bob Ooten
X Michael Levitt Gordon Shanks
X Jeffrey Lalloway Steven Choi
X Roy Moore Ron Garcia
X Prakash Narain Doug Bailey
X Joy Neugebauer Al Krippner
A Janet Nguyen X Shawn Nelson
X John Nielsen Jerry Amante
X Sharon Quirk-Silva Pat McKinley
X Brad Reese Robert Fauteux
X Steven Rosansky Nancy Gardner
X David Shawver Carol Warren
A Harry Sidhu Gail Eastman
X Fred Smith Steve Berry
X Sal Tinajero David Benavides
X Constance Underhill Joseph Aguirre
X Mark Waldman Steven Hwangbo
X John Withers Douglas Reinhart
STAFF MEMBERS PRESENT: Jim Ruth, General Manager; Bob Ghirelli, Assistant
General Manager; Jim Herberg, Assistant General Manager; Nick Arhontes, Director of
Facilities Support Services; Lorenzo Tyner, Director of Finance & Administrative
Services; Ed Torres, Director of Operations and Maintenance; Jeff Reed, Director of
Human Resources; Maria Ayala, Clerk of the Board; Lilia Kovac, Associate Clerk of the
Board; Cindi Ambrose; Norbert Gaia; Michael Gold; Tod Haynes; Doug Kanis; Rich
Spencer; Rob Thompson; and Paula Zeller.
OTHERS PRESENT: Brad Hogin, General Counsel; Gino Rapagna; and, Mike Moore.
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PUBLIC COMMENTS:
There were no public comments.
REPORTS:
Board Chair Crandall announced that Senator Feinstein will be delivering her
Washington Report on August 25th at the Orange County Water District. Chair Crandall
shared that KTLA’s Allie MacKay did a live segment at OCSD for the station’s morning
show. Chair Crandall also reminded the Board that although there are no Operations
Committee or Administration Committee Meetings in August, there will be a Steering
Committee Meeting and Board Meeting on August 24th.
General Manager, Jim Ruth, announced that the OCSD Purchasing Department has
received an Excellence Award. Mr. Ruth informed the Board that they have been
provided tonight with an outline of the Sanitation District’s current accomplishments. It
has been a successful year, and staff continues to streamline the organization
according to the Beyond 2012 plan. Mr. Ruth shared additional good news regarding
the Enertech agreement; the milestones are being reached on time, and a signed
agreement was received today by the Sanitation District. Mr. Ruth updated the Board
on the Teeter Plan. The Sanitation District received a letter from the County regarding
the Teeter Plan stating the Sanitation District will not be allowed to exit the Teeter Plan
based on California statutes. General Counsel will be exploring this further. Mr. Ruth
announced that a draft of the fiscal proposed work plan was provided to the Steering
Committee tonight. This report will be brought forth to the Board for approval at a later
time. Lastly, Mr. Ruth announced that the Cost Savings report was being provided to
the Board tonight. The Sanitation District continues to look at cost efficiencies and will
further support the Beyond 2012 plan.
CLAIMS:
1. Ratify payment of claims of the District, by roll call vote, as follows:
Claims Paid for the Period Ending: 06/15/11 06/30/11
Totals $14,404,574.24 $9,239,075.00
Directors Nelson and Nielsen abstained from discussion and voting on all warrants
pursuant to California Government Code Section 84308.
CONSENT CALENDAR:
2. MOVED, SECONDED, AND DULY CARRIED: Approve minutes for the Regular
Meeting held on June 22, 2011.
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Agenda Item No. 3 was pulled from the Consent Calendar and voted on separately.
NON-CONSENT CALENDAR:
3. MOVED, SECONDED, AND DULY CARRIED: Adopt Resolution No. OCSD
11-09, A Resolution of the Board of Directors of the Orange County Sanitation
District (OCSD), approving the Memorandum of Understanding (MOU) between
OCSD and the International Union of Operating Engineers, Local 501 (IUOE
Local 501), for the Operations and Maintenance Unit for fiscal years 2011/12,
2012/13 AND 2013/14.
Directors Carchio, Dumitru, Lalloway, Nelson, and Rosansky opposed. Director
Underhill abstained.
STEERING COMMITTEE:
4. MOVED, SECONDED, AND DULY CARRIED: Approve minutes of the June 22,
2011, Steering Committee meeting.
5. MOVED, SECONDED, AND DULY CARRIED: Adopt Resolution No. OCSD
11-10, Authorizing a payment deferral option of Capital Facility Capacity Charges
(connection fees) through June 30, 2012, to builders of large housing
development projects.
OPERATIONS COMMITTEE:
6. MOVED, SECONDED, AND DULY CARRIED: Approve minutes of the July 6,
2011, Operations Committee meeting.
7. MOVED, SECONDED, AND DULY CARRIED: Approve a Reimbursement
Agreement with the City of Fullerton for costs incurred for the modification of
Orange County Sanitation District facilities within State College Boulevard, the
Newhope-Placentia & Cypress Trunk Replacements, Project No. 2-65, in an
amount not to exceed $5,050,000, in a form approved by General Counsel.
8. A. MOVED, SECONDED, AND DULY CARRIED: Approve a budget increase of
$196,000 for Replacement of the Rocky Point Pump Station, Contract No.
5-50, for a total budget amount of $20,947,000; and,
B. Approve a contingency increase of $335,320 (4%) to the construction contract
with Kiewit/Mass, a Joint Venture, for Replacement of the Rocky Point Pump
Station, Contract No. 5-50, for a total contingency of $1,173,620 (14%).
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9. A. MOVED, SECONDED, AND DULY CARRIED: Approve a Purchase
Agreement with Jamison Engineering for On-Call Contractor Support
Services, Specification No. S-2011-483BD, for the period July 1, 2011
through June 30, 2012 for a total annual amount not to exceed $875,272.00,
with four one-year renewable options; and,
B. Approve a contingency of $87,527.20 (10%), annually, if needed.
10. A. MOVED, SECONDED, AND DULY CARRIED: Award a contract to Polydyne,
Inc. for the purchase of Anionic Polymer, Specification No. C-2011-476BD, for
the period September 1, 2011 through August 31, 2012, for a unit price of
$2.75 per active pound delivered, plus applicable sales tax for a total annual
amount not to exceed $413,000 with four one-year renewal options; and,
B. Approve an annual unit price contingency of $41,300 (10%)
11. A. MOVED, SECONDED, AND DULY CARRIED: Approve a Professional
Design Services Agreement with The Austin Company to provide professional
design services for Title 24 Access Compliance and Building Rehabilitation
Project, Project No. P1-115, for an amount not to exceed $2,200,000; and,
B. Approve a contingency of $220,000 (10%).
12. A. MOVED, SECONDED, AND DULY CARRIED: Approve a Professional
Design Services Agreement with Brown and Caldwell for Sludge Dewatering
and Odor Control at Plant No.2, Job P2-92, providing for engineering design
services for the amount not to exceed $5,682,963; and,
B. Approve a contingency of $568,296 (10%).
13. MOVED, SECONDED, AND DULY CARRIED: Authorize the General Manager to
negotiate and subsequently approve Amendment No. 5 to the Agreement with
Air Products and Chemicals, Inc., for Private Operation and Maintenance of
Oxygen Generation System at Plant No. 2, Purchase Order No. 43063-OB to
include the following:
A. Extend the agreement with Air Products and Chemicals, Inc. for an additional
three (3) month period beginning February 2, 2012, through April 30th, 2012,
at the current monthly rate of $27,411.76, and,
B. Authorization for Air Products to refurbish the liquid oxygen storage and
delivery system, for a total amount not to exceed $1,300,000; and,
C. Approve a contingency of $260,000 (20%) for the liquid oxygen
refurbishment.
14. MOVED, SECONDED, AND DULY CARRIED: Adopt Resolution No. OCSD
11-11, Adopting a Policy Regarding the Transfer of Local Sewers.
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ADMINISTRATION COMMITTEE:
15. MOVED, SECONDED, AND DULY CARRIED: Approve minutes of the July 13,
2011, Administration Committee meeting.
16. MOVED, SECONDED, AND DULY CARRIED: Authorize the General Manager to
issue new fixed rate Certificates of Participation (COP), to be referred to as
Wastewater Revenue Obligations, in an amount sufficient to refund up to
$191.5 million of COP Series 2003 and up to $113.8 million of COP Series 2000
for a total of up to $305.3 million.
17. MOVED, SECONDED, AND DULY CARRIED: Adopt Resolution No. OCSD
11-12, Authorizing the Orange County Sanitation District’s Treasurer to Invest
and/or Reinvest District’s Funds; Adopting District’s Investment Policy Statement
and Performance Benchmarks for FY 2010-11; and Repealing Resolution No.
OCSD 10-14.
CLOSED SESSION:
CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE
SECTIONS: 54956.9(a), 54956.9(c), 54956.8, 54954.5(f), and 54957(b)(1).
The Board convened in closed session at 6:45 p.m. to discuss five matters. Confidential
Minutes of the Closed Session have been prepared in accordance with the above
Government Code Sections and are maintained by the Clerk of the Board in the Official
Book of Confidential Mintues of Board and Committee Closed Meetings.
RECONVENE IN REGULAR SESSION: The Board reconvened in regular session at
7:55 p.m.
CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED
SESSION:
MOVED, SECONDED, AND DULY CARRIED: Closed Session Items Nos. (2) and
(3), the Board of Directors, authorized legal counsel to appear and defend the interest of
the Sanitation District in the lawsuit filed by Mladen Buntich related to the Newport
Trunk Sewer Project for delayed damages and extra work, and also authorized legal
counsel to file a counter suit against Mladen Buntich for property damaged to the levees
in other areas caused by tunneling.
The vote was unanimous.
MOVED,SECONDED,AND DULY CARRIED:Closed Session Item No. (4)the Board
of Directors voted to approve the negotiation which resulted in an agreement to sell the
Kings County property to Francisco Rodriguez at a sale price of $1,225,000.
Director Dumitru opposed.
MOVED,SECONDED, AND DULY CARRIED:Closed Session Item No. (5)the Board
of Directors voted to ratify the Memorandum of Understanding (MOU)negotiated with
the Orange County Employees Association (OCEA)regarding wage,hours and other
terms.The material terms of the MOU were as follows:Retirement formula for new
hires at 1.667%at 57 1/4 years of age;Higher co-pays and deductibles for medical
insurance;and,Salary increase of 2.5%over 3 years.
Directors Carchio,Dumitru,Nelson,Rosansky and Lalloway opposed.
NON-CONSENT CALENDAR:
18.MOVED,SECONDED,AND DULY CARRIED:Authorize the General Manager to
enter into an agreement to sell the Orange County Sanitation District's ownership
of its property located in King's County to Francisco Rodriguez,in a form
approved by General Counsel.
Director Dumitru opposed.
19. MOVED,SECONDED,AND DULY CARRIED:Adopt Resolution No.OCSD
11-13,A Resolution of the Board of Directors of the Orange County Sanitation
District (OCSD),approving the Memorandum of Understanding (MOU)between
OCSD and Orange County Employees Association (OCEA) for fiscal years
2011/12,2012/13 AND 2013/14.
Directors Carchio,Dumitru, Lalloway, Nelson,and Rosansky opposed.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS.IF ANY:
Chair Crandall reminded the Board that the only meetings in August are the Steering
and Board Meetings on August 24th.
ADJOURNMENT:
The Chair declared the meeting adjourned at 8:02 p.m.
Maria |E.Ayala o
Clerk of the Board
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