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HomeMy WebLinkAbout05-27-2015 Board Meeting Minutes05/27/2015 Orange County Sanitation District MINUTES BOARD MEETING May 27, 2015 Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 Minutes of Board Meeting Page 1 of 14 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on May 27, 2015, at 6:03 p.m., in the Administration Building. Director Sebourn delivered the invocation and led the Pledge of Allegiance. The Clerk of the Board declared a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS x Tom Beamish, Chair Rose Espinoza x John Nielsen, Vice-Chair Allan Bernstein A Lisa Bartlett Michelle Steel x Steven Choi Lynn Schott x Keith Curry Scott Peotter x Ellery Deaton Sandra Massa-Lavitt Tyler Diep x Joy Neugebauer James M. Ferryman x Bob Ooten x Steven Jones Kris Beard x Jim Katapodis Erik Peterson x Robert Kiley Michael Beverage x Peter Kim Michele Steggell x Lucille Kring Jordan Brandman x Greg Mills Robert Collacott x Richard Murphy Shelley Hasselbrink x Steve Nagel Michael Vo x Glenn Parker Cecilia Hupp x Gregory Sebourn Doug Chaffee x David Shawver Carol Warren x Fred Smith Steve Berry x Teresa Smith Mark Murphy x Sal Tinajero David Benavides A Chad Wanke Constance Underhill x John Withers Douglas Reinhart Mariellen Yarc x Stacy Berry STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Bob Ghirelli, Assistant General Manager; Rob Thompson, Director of Engineering; Lorenzo Tyner, Director of Finance & Administrative Services; Ed Torres, Director of Operations & Maintenance; Nick Arhontes, Director of Facility Support Services; Kelly Lore, Clerk of the Board; Jennifer Cabral; Chad Crow; Al Garcia; Stephanie Good; Andrew Nau; and Paula Zeller. OTHERS PRESENT: Brad Hogin (General Counsel); and Michael Beverage (Alternate Director, YLWD); Anna Laliberte, Alliant; and Jim Voeltel, First Legal. 05/27/2015 Minutes of Board Meeting Page 2of14 PUBLIC COMMENTS: None. SPECIAL PRESENTATION Chair Beamish presented certificates to Sean Weiss and Rachelle Runyon, whose projects were selected as winners at the OC Science & Engineering Fair. REPORTS: Chair Beamish announced that Jim Ruth, former General Manager; William Wallin, former employee; Shirley McCracken, former Board Chair and Director; and Thomas Woodruff, OCSD's former legal counsel, were all recognized for their contributions to OCSD at today's Honor Walk Ceremony. Chair Beamish stated that Assembly member Young Kim will be touring OCSD tomorrow at 3:30 p.m. and that the GWRS Expansion Ceremony will be held on June 26 from 9:00 a.m. General Manager Herberg introduced Director of Engineering Rob Thompson who updated the Committee on the completion of Phase One of the Newport Force Main project. He also announced that OCSD had received a $450,000 WaterSMART Grant from the US Bureau of Reclamation to help fund the Effluent Reuse Study. Director Curry thanked staff for their extraordinary efforts in Newport Beach. Mr. Herberg stated that OCSD celebrated Public Works Week, May 17-23 and commemorative tape measures were distributed to the directors. ELECTIONS: General Counsel Brad Hagin provided instructions and facilitated the election. 1. MOVED, SECONDED, AND DULY CARRIED TO: A. Open nominations for Chair of the Board of Directors (Election to be held at the regular June Board Meeting, unless only one candidate is nominated). Chair Beamish nominated Vice-Chair John Nielsen as Board Chair to be effective July 1, 2015. Director Kring seconded. There were no further nominations. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Diep; Ferryman; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Nielsen; Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None 05/27/2015 Minutes of Board Meeting Page 3of14 ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke Vice-Chair Nielsen was deemed Chairman of the Board elect. MOVED, SECONDED, AND DULY CARRIED TO: B. Open nominations for Vice Chair of the Board of Directors (Election to be held at the regular June Board Meeting, unless only one candidate is nominated). Vice-Chair Nielsen nominated Director Greg Sebourn as Board Vice-Chair to be effective July 1, 2015. Chair Beamish seconded. There were no further nominations. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Diep; Ferryman; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Nielsen; Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke Director Sebourn was deemed Vice-Chairman of the Board elect. CONSENT CALENDAR: 2. MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes for the Regular Board Meeting held on April 22, 2015; and AYES: Beamish; Stacy Berry, (Alternate); Choi; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: Curry ABSENT: Bartlett; Katapodis and Wanke 05/27/2015 Minutes of Board Meeting Page 4of14 3. MOVED, SECONDED, AND DULY CARRIED TO: A Approve a sole source purchase order to Haaker Equipment Company for rental of a combination se'A'er cleaning truck, for a total amount not to AvnAArl ~ 1 t1 s non· ::mrl ------~ "T" -·-,---, -··-, B. Ap ' ' prove a c . ontmgency of $29 000 ' (20%). Ratify and approve a sole source purchase order agreement to Haaker Equipment Company for rental of a sewer cleaning truck at a monthly rate of $12,000 for a total amount not to exceed $144,000. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke OPERATIONS COMMITTEE: 4. MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes of the May 6, 2015 meeting of the Operations Committee. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke 5. MOVED, SECONDED, AND DULY CARRIED TO: A. Approve Amendment No. 2, for the Overhaul of Plant No. 2 Central Generation Engine No. 4, to the Contract with NRG Energy Services, LLC, PO 105280-0B, for period November 1, 2014 through October 31, 2015 for an additional amount of $399,375.66 and, B. Approve an Additional Contingency of $39,937.57 (10%). 05/27/2015 Minutes of Board Meeting Page 5of14 AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke 6. MOVED, SECONDED, AND DULY CARRIED TO: A. Award a Service Contract to Denali Water Solutions for Grit and Screenings Removal, Specification No. S-2015-668BD, for a total amount not to exceed $387,905.00 for the period June 22, 2015 through July 31, 2016, with four one-year renewal options; and, B. Approve a contingency of $38,790.00 (10%). AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke 7. MOVED, SECONDED, AND DULY CARRIED TO: Award a Sole Source contract to Performance Pipeline Technologies for a six-month period, effective July 1, 2015 through December 31, 2015, with (one) 6-month renewal option, for the cleaning services of approximately 90 miles of Area 7 sewer pipelines and manholes for an amount not-to-exceed $202,204. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke 05/27/2015 Minutes of Board Meeting Page 6of14 8. MOVED, SECONDED, AND DULY CARRIED TO: Approve an Agreement with Inland Empire Regional Composting Authority (IERCA) to receive and compost up to 50 wet tons per day (Monday thru Friday) of the Orange County Sanitation District's biosolids at a tipping fee of $54 per wet ton of biosolids and an administrative fee of $2 per wet ton of biosolids exclusive of trucking costs for a contract term of one-year commencing on the date of execution of the Agreement, with three one-year renewal options in a total annual amount not to exceed $900,000/per year. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke 9. MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a project budget increase of $4,471,403 for a total project budget of $56,687,403 for Newport Force Main Rehabilitation, Project No. 5-60; B. Approve a contingency increase of $4,038,650 (11 %) to the construction contract with Kiewit Infrastructure West Company for Newport Force Main Rehabilitation, Project No. 5-60, for a total contingency of $7,343,000 (20%); and, C. Approve Amendment No. 3 to the Professional Consultant Services Agreement with Brown & Caldwell to provide construction support services for Newport Force Main Rehabilitation, Project No. 5-60, for $432,753, increasing the total amount not to exceed $3,071,639. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke 05/27/2015 Minutes of Board Meeting Page 7of14 10. MOVED, SECONDED, AND DULY CARRIED TO: Approve a contingency increase of $328,078 (27%) to the construction contract with W.M. Lyles for Oxygen Plant Demolition at Plant No. 2, Project No. SP-129, for a total contingency of $497,783 (41%). AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke Item 11 heard separately. Operations Chair Sebourn recused himself from Item 11 and left the room during discussion and the vote. Operations Committee Vice-Chair Shawver presided. 11. MOVED, SECONDED, AND DULY CARRIED TO: A. Approve an increase in the project budget for Headworks Rehabilitation at Plant 1, Project No. P1-105 from $76,476,000 to $235,273,000, and an increase in the construction budget from $44, 181,000 to $155,000,000; B. Approve a Professional Design Services Agreement with Carollo Engineers, Inc. to provide engineering design services Project No. P1- 105, for an amount not to exceed $17,528,957; and C. Approve a contingency of $1,752,896 (10%); and D. Cancel Project No. P1-120, Headworks Expansion, as its scope of work is included in Project No. P1-105. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: Sebourn (recused) ABSENT: Bartlett; Katapodis and Wanke 05/27/2015 Minutes of Board Meeting Page 8of14 ADMINISTRATION COMMITTEE: 12. MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes of the May 13, 2015 meeting of the Administration Committee. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke 13. MOVED, SECONDED, AND DULY CARRIED TO: Receive and file District purchases made under the General Manager's authority for the period of January 1, 2015 -March 31, 2015. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke 14. MOVED, SECONDED, AND DULY CARRIED TO: Receive and file Orange County Sanitation District Third Quarter Financial Report for the period ended March 31, 2015. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: Kim ABSENT: Bartlett; Katapodis and Wanke 05/27/2015 Minutes of Board Meeting Page 9of14 15. MOVED, SECONDED, AND DULY CARRIED TO: Approve not-to-exceed numbers as follows, with the understanding that the Sanitation District's insurance broker will continue to negotiate with insurers to seek the lowest possible premiums prior to the expiration date of the current major insurance policies: A. Excess liability insurance -$403,662. B. Excess workers compensation insurance - a rate of $0.3805 per $100 of payroll (estimated premium at $240,000). C. Property and Boiler & Machinery combined -$705, 186. D. Earthquake insurance -$88,587. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke STEERING COMMITTEE: 16. MOVED, SECONDED, AND DULY CARRIED TO: A. Approve minutes of the April 16, 2015 Special Steering Committee Meeting; and B. Approve minutes of the April 22, 2015 Regular Steering Committee Meeting. AYES: Beamish; Stacy Berry, (Alternate); Choi; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; and Tinajero NOES: None ABSTENTIONS: Curry (16B); Nielsen and Withers (16A) ABSENT: Bartlett; Katapodis and Wanke 05/27/2015 Minutes of Board Meeting Page 10of14 LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE: 17. MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes of the May 11, 2015 meeting of the Legislative and Public Affairs Committee. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: Kring ABSENT: Bartlett; Katapodis and Wanke AUDIT AD HOC COMMITTEE: 18. MOVED, SECONDED, AND DULY CARRIED TO: Receive and file minutes of the April 22, 2015 meeting of the Audit Ad Hoc Committee. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke GWRS STEERING COMMITTEE: 19. MOVED, SECONDED, AND DULY CARRIED TO: Receive and file minutes of the January 12, 2015 meeting of the GWRS Steering Committee. AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke 05/27/2015 Minutes of Board Meeting Page 11 of 14 NON-CONSENT: General Manager, Jim Herberg introduced this item and made a brief presentation. 20. MOVED, SECONDED, AND DULY CARRIED TO: A. Ratify the use of General Manager's Purchasing Authority, Ordinance OCSD-44, Article 2, Section 2.03E (Critical Time-Sensitive Procurement) authorizing the General Manager sign a memorandum of understanding (contract) with the California State Association of Counties -Excess Insurance Authority (CSAC-EIA) for medical insurance, effective July 1, 2015;and B. Adopt Resolution No. OCSD 15-11, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Approving Medical Insurance Changes Identified Through the 2015 Medical Reopener Negotiations." AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke General Manager, Jim Herberg introduced the item and Director of Finance, Lorenzo Tyner who made a brief presentation. 21. MOVED, SECONDED, AND DULY CARRIED TO: A. Approve the following proposed revisions to the Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY 2015-16: 05/27/2015 1) Reduce the approved future Single Family Residential (SFR)* and Multi-Family (MFR) rate increases as follows: July 1, 2015 July 1, 2016 July 1, 2017 SFR Approved $323.00 $331.00 $339.00 MFR Approved $226.10 $231.70 $237.30 SFR Proposed $322.00 $327.00 $331.00 *The SFR is the underlying rate for the District's primary rate structure and as such other components of the rate structure will be adjusted similarly. MFR Proposed $225.40 $228.90 $231.70 2) Include a payment of $50 million to the Orange County Retirement System (OCERS) to be credited against the District's Unfunded Actuarial Accrued Liability (UAAL). Minutes of Board Meeting Page 12 of 14 3) Approve the FY 2015-16 Operating Budget of $149.3 million, a decrease of $5.7 million (3.7%). 4) Approve the FY 2015-16 Capital Improvement Program (GIP) total outlay budget of $181.0 million, an increase of $1.6 million (0.9%), bringing the total GIP budget to $2.4 billion consisting of 126 projects. 5) Approve the 2015-16 Outlays as follows: Category Operations and Maintenance Capital Improvement Program Less GIP Savings and Deferrals Rehab, Replacement, Refurbishment Debt Service Reduction of Long-term Liabilities Re-Purchase of Excess Capacity General Liability & Property Insurance Workers' Compensation Insurance Total Originally Adopted Budget FY 2015-16 155,004,500 180,338,000 25,749,000 86,714,000 1,115,000 1,611,200 790,000 451.321.700 Proposed Budget Revision FY 2015-16 149,306,940 181,912,000 (6,891,000) 91,777,000 50,000,000 1,000,000 1,657,700 955,000 469.717.640 B. Adopt Resolution No. OCSD 15-12 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Directing the County Tax Collector to include Sanitary Sewer Service Charges on Fiscal Years 2015-16 through 2017-18 property tax bills and Repealing Resolution No. OCSD 13-05." AYES: Beamish; Stacy Berry, (Alternate); Choi; Curry; Deaton; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer (Alternate); Nielsen; Ooten (Alternate); Parker; Sebourn; Shawver; F. Smith; T. Smith; Tinajero; and Withers NOES: None ABSTENTIONS: None ABSENT: Bartlett; Katapodis and Wanke AB1234 REPORTS: Director Sebourn informed the Board of interest expressed to him regarding the Newhope-Placentia Trunk. 05/27/2015 Minutes of Board Meeting Page 13of14 INFORMATION ITEMS: None. CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS: 54956.9(d)(1) The Board convened in closed session at 6:25 p.m. to discuss one item. 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 Minutes of Board and Committee Closed Meetings. Director Katapodis arrived at 6:43 p.m. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 6:48 p.m. CONSIDERATION OF ACTION. IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: None . OTHER BUSINESS AND COMMUNICAT IONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Director Shawver thanked Chair Beamish for his outstanding contributions during his term as Chair. Chair Beamish thanked Director Shawver for his supportive comments. ADJOURNMENT: Chair Beamish adjourned the meeting at 6:50 p.m. until the Regular Board Meeting on June 24 , 2015 at 6:00 p.m. 05/27/2015 Minutes of Board Meeting Page 14 of 14