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HomeMy WebLinkAbout05-25-2016 Board Meeting Minutes05/25/2016 Orange County Sanitation District MINUTES BOARD MEETING May 25, 2016 Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 Minutes of Board Meeting Page 1 of 11 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on May 25 , 2016 , at 6 :03 p .m ., in the Administration Building . Director Ellery Deaton 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 John Nielsen , Chair Allan Bernstein x Gregory Sebourn , Vice Chair Doug Chaffee x Tom Beam ish Tim Shaw x Steven Choi Lynn Schott x Keith Curry Scott Peotter x Ellery Deaton Sandra Massa -Lavitt x Joy Neugebauer Al Krippner x James M . Ferryman Bob Ooten Steven Jones x Kris Beard Jim Katapodis x Erik Peterson x Robert Kiley Michael Beverage x Peter Kim Michele Steggell x Lucille Kring James Vanderbilt x Greg Mills Diana Fascenelli x Richard Murphy Shelley Hasselbrink x Steve Nagel Cheryl Brothers Glenn Parker x Cecilia Hupp x David Shawver Carol Warren x Fred Smith Virginia Vaughn x Teresa Smith Mark Murphy x Michelle Steel Shawn Nelson A Sal Tinajero David Benavides x Chad Wanke Constance Underhill x John Withers Douglas Reinhart x Mariellen Yarc Stacy Berry STAFF MEMBERS PRESENT: Jim Herberg , General Manager; Bob Ghirelli , Assistant General Manager; Rob Thompson , Director of Engineering ; Jim Colston , Director of Environmental Services ; Lorenzo Tyner , Director of Finance & Administrative Services ; Celia Chandler , Director of Human Resources ; Ed Torres , Director of Operations and Maintenance ; Kelly Lore , Clerk of the Board ; Bob Bell ; Marc Brown ; Jennifer Cabral ; Don Cutler ; Mark Dorman ; Dean Fisher ; Al Garcia ; Tina Knapp ; Randy Kleinman ; Mark Manzo ; Jeff Mohr; and Paula Zeller . 05 /25 /2016 Minutes of Boa rd Meeting Page 2 of 11 OTHERS PRESENT: Kendra Carney (Associate General Counsel); Robert Carley; Bob Ooten (Alternate Director CMSD); and Mike Beverage (Alternate Director YLWD). PUBLIC COMMENTS: None. SPECIAL PRESENTATIONS: Chair Nielsen called upon Jim Colston, Director of Environmental Services, who presented an Employee Service Award to Miriam Angold, Principal Laboratory Analyst - Division 890 (25 years). REPORTS: Chair Nielsen provided a Legislative and Public Affairs Committee update including: OCSD's construction outreach program; a Video RFP that was issued and Save the dates for the OCSD Joint Open House with OCWD August 13 from 10 a.m. to 2 p.m. and the State of the District: Friday, October 14, 2016 at 8am-10am. He further stated that staff is looking into a grant for the AquaCritox project with the Department of Energy. Chair Nielsen stated that on May 17th, OCSD, OCWD and WateReuse staff traveled to Sacramento to meet with the State Water Resources Control Board to discuss the Water Bottle Bill -AB 2022, visit Assemblyman Gordon's office, and Senator Hertzberg's office to discuss SB 163. Chair Nielsen reported the success of the Honor Walk which was held today at 4:00 p.m. The event recognized former Board Chair Troy Edgar and former employees: General Manager Blake Anderson and Environmental Specialist Mary Sue Thompson. Vice-Chair Sebourn stated that he had missed the Legislative and Public Affairs meeting this month, but did attend the community meeting on May 10 at Rosary Academy in Fullerton, regarding construction information on the Newhope Sewer Replacement Project. General Manager Jim Herberg introduced Jim Colston, the new Director of Environmental Services. ELECTIONS: Associate General Counsel Kendra Carney 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). 05/25/2016 Minutes of Board Meeting Page 3 of 11 Vice-Chair Sebourn nominated Chair John Nielsen as Board Chair to be effective July 1, 2016. Director Beamish seconded. There were no further nominations. AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Tinajero 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). Chair Nielsen nominated Vice-Chair Sebourn as Board Vice-Chair to be effective July 1, 2016. Director Beamish seconded. There were no further nominations. AYES: NOES: Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None ABSTENTIONS: None ABSENT: Tinajero Vice Chair Sebourn was deemed Vice Chairman of the Board elect. CONSENT CALENDAR: 2. APPROVAL OF MINUTES (Clerk of the Board) MOVED. SECONDED, AND DULY CARRIED TO: Approve the minutes of the Regular Board of Directors Meeting held on April 27, 2016. AYES: NOES: ABSTENTIONS: ABSENT: 05/25/2016 Beamish; Choi; Curry; Deaton; Ferryman; Kiley; Kim; Kring; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None Beard (Alternate); Hupp (Alternate); and Mills Tinajero Minutes of Board Meeting Page 4 of 11 3. EXTENSION OF ALTERNATE DISTRICT ENGINEER AGREEMENT WITH COSTA MESA SANITARY DISTRICT (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Authorize the Orange County Sanitation District to extend a lending agreement to contract an Orange County Sanitation District Engineer as Alternate District Engineer to the Costa Mesa Sanitary District, on an as-needed basis from May 25, 2016 through May 24, 2017. AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Tinajero RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the Board Chair. 4. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF APRIL 2016 (Lorenzo Tyner) Received and filed the report of the Investment Transactions for the month of April 2016. 5. COMMITTEE MINUTES (Clerk of the Board) Received and filed the approved minutes of the following standing committees: A. Operations Committee meeting of April 6, 2016 B. Administration Committee meeting of April 13, 2016 C. Legislative and Public Affairs Committee meeting of April 11, 2016 D. Steering Committee meeting of April 27, 2016 OPERATIONS COMMITTEE: 6. CONTRACT FOR HYDROGEN PEROXIDE, SPECIFICATION NO. C-2016-752BD (Ed Torres) MOVED, SECONDED, AND DULY CARRIED TO: A. Award a contract to U.S. Peroxide, LLC dba USP Technologies for the purchase of Hydrogen Peroxide, Specification No. C-2016-752BD, for the period July 1, 2016 through June 30, 2017 for a unit price of $1.88 per gallon delivered, plus applicable sales tax, for a total estimated annual cost of $1,020,000 with four one-year renewal options; and B. Approve a unit price contingency of 10%. 05/25/2016 Minutes of Board Meeting Page 5 of 11 AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Tinajero 7. ENVIRONMENTAL COMPLIANCE REPORTS (Bob Ghirelli) MOVED. SECONDED. AND DULY CARRIED TO: Receive and file environmental compliance reports: Biosolids Management Compliance Report 2015; Semi- Annual Pretreatment Program Report Fiscal Year 2015/2016 July-December; Annual Greenhouse Gas Emissions Report 2015; and Annual Emission Report 2015. AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Tinajero 8. BIOGAS SCRUBBING PROCESS IMPROVEMENT (Rob Thompson) MOVED. SECONDED. AND DULY CARRIED TO: Authorize staff to negotiate a Sole Source Contract with Carollo Engineers, Inc. for a large-scale pilot testing of a biogas scrubbing process. AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Tinajero Item No. 9 heard separately. Vice-Chair Sebourn recused himself and left the room during the vote. 9. SURVEYING SERVICES (Dean Fisher) MOVED, SECONDED. AND DULY CARRIED TO: Approve Professional Services Agreements to provide on-call Surveying Services for Collection System and Treatment Plant Projects, PSA2016-002, for a three-year period effective June 1, 2016, for an amount not to exceed $200,000 per individual agreement ($800,000 total) with the following four firms: 05/25/2016 Minutes of Board Meeting Page 6 of 11 • Stantec Consulting Services, Inc. • D. Wooley and Associates, Inc. • Michael Baker International • Bush and Associates, Inc. AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Sebourn (Recused); Tinajero ADMINISTRATION COMMITTEE: 10. DESIGNATION OF APPLICANT'S AGENT FOR DISASTER RELIEF (Bob Ghirelli) MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 16-08 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District authorizing the General Manager, the Assistant General Manager, or the Director of Operations and Maintenance to Execute State Office of Emergency Services and/or Federal Emergency Management Agency Documents and Relevant Permit Applications for Present and Future Disaster Relief Applications; and Repealing Resolution No. OCSD 16-05." AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Sebourn and Tinajero 11. CONSOLIDATED FINANCIAL REPORT 3Ro QUARTER ENDING MARCH 31, 2016 (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Orange County Sanitation District Third Quarter Financial Report for the period ended March 31, 2016. AYES: Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None 05/25/2016 Minutes of Board Meeting Page 7 of 11 ABSENT: Sebourn and Tinajero 12. GENERAL MANAGER APPROVED PURCHASES (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Receive and file Orange County Sanitation District purchases made under the General Manager's authority for the period of January 1, 2016 -March 31, 2016. AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Sebourn and Tinajero 13. COOPERATIVE PROCUREMENT WITH THE U.S. GENERAL SERVICES AGREEMENT (GSA) (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Approve purchases of information technology hardware, software, services, and licensing & maintenance agreements using the U.S. General Services Agreement (GSA) IT Schedule 70 through the contract expiration date, December 31, 2019, for a total amount not to exceed $2,500,000, in accordance with OCSD Ordinance OCSD-47, Section 2.03(B) Cooperative Purchases. AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Sebourn and Tinajero 14. 2016 BENEFITS PROGRAM (Celia Chandler) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve funds to make payments to the healthcare and welfare insurance vendors listed on the following table for the months of July 2016 through December 2016, at which time all benefits will be aligned with the calendar year. No. Vendor Plan Type Not To Exceed 1 Employee Benefit Specialists (EBS) Medical, Dental, Vision, Employee Assistance Program $ 5,650,000 2 Prudential Basic Life, Short-and Long-Term Disability $ 310,000 3 The Standard Executive Disability $ 15,000 TOTAL $ 5,975,000 05/25/2016 Minutes of Board Meeting Page 8 of 11 B. Authorize pre-payment for the July 2016 EBS invoice prior to July 1, 2016 to comply with vendor requirement of payment one month in advance; and C. Authorize reallocation in the already approved amount of $115,000 from the FY 2015/16 EBS line item to the Prudential line item. AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Sebourn and Tinajero 15. 2016-17 OPERATIONAL PROPERTY-LIABILITY INSURANCE RENEWALS (Celia Chandler) MOVED, SECONDED, AND DULY CARRIED TO: Approve not-to-exceed numbers as follows, with the understanding that the Orange County 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: 1. Excess liability insurance -$460,506. 2. Excess workers compensation insurance - a rate of $0.332 per $100 of payroll (estimated premium at $218,000). 3. Property and Boiler & Machinery combined -$725.595. 4. Earthquake insurance -$81, 131. AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Sebourn and Tinajero Vice-Chair Sebourn returned to the meeting. NON-CONSENT CALENDAR: 16. EXTEND STATED EFFECTIVE PERIOD OF LOCAL SEWER SERVICE CHARGES IN AREA 7 AND AUTHORIZE SUCH CHARGES TO BE COLLECTED ON THE COUNTY TAX ROLL (Lorenzo Tyner) Director of Finance and Administrative Services, Lorenzo Tyner, provided a brief report on the requirements for this Resolution. 05/25/2016 Minutes of Board Meeting Page 9 of 11 MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 16-09, entitled: A Resolution of the Board of Directors of the Orange County Sanitation District Directing the County Tax Collector-Treasurer to include Local Sanitary Sewer Service Charges on the Tax Roll for Fiscal Year 2016-2017, and for Each Fiscal Year Thereafter Unless Otherwise Amended by the Board. AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Tinajero 17. AMENDMENT NO. 3, FOR THE OVERHAUL OF CENTRAL GENERATION ENGINE NO. 1 (P1) (Ed Torres) Ed Torres, Director of Operations and Maintenance provided a verbal update. Clerk of the Board Kelly Lore, stated an error to the staff recommendation on the agenda. MOVED, SECONDED, AND DULY CARRIED TO: A I(. 8. Approve Amendment No. 3 to the Contract •.vith NRG Energy Services, LLC to complete the overhaul of Plant No. 1 Central Generation Engine No. 3, P0105280 OB, for the period January 1, 2016 through December 31, 2016 for an additional amount of $777,479.16, for a total amount not to exceed $1,079,652.32; and Approve an Additional Contingency of $77,747 (10%). Approve Amendment No. 3 to the Service Contract with NRG Energy Services, LLC, PO No. 105280-0B, for an additional amount of $335,858 and allocate all of the existing contract amount of $743,524 to overhaul engine No. 3 at Plant 1 for the period January 1, 2016 through December 31, 2016, for a total amount not to exceed $1,079,382.32. AYES: NOES: ABSTENTIONS: ABSENT: 05/25/2016 Beamish; Beard (Alternate); Choi; Curry; Deaton; Ferryman; Hupp (Alternate); Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Tinajero Minutes of Board Meeting Page 10of11 AB 1234 REPORTS : Director Ferryman reported that at the recent OCCOG meeting, Kris Murray (Anaheim) was elected Chairperson , and John Nielsen (Tustin) was elected Vice-Chair. He further notified the Board of upcoming dates for the SARFC and Borders Committee meetings. INFORMATION ITEMS: None. Director Steel departed the meeting at 6:26 p .m. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(d)(1 ): The Board convened in closed session at 6:26 p.m . to discuss one item. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Section and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 6:31 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: Associate General Counsel , Kendra Carney did not provide a report. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Chair Nielsen and several Directors provided information to the Board of upcoming events taking place in their respective cities/agencies. ADJOURNMENT: At 6:34 p.m. Chair Nielsen adjourned the meeting until the Regular Board Meeting on June 22, 2016 at 6:00 p .m . Submitted by: 05/25/2016 Minutes of Board Mee ting Page 11 of 11