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HomeMy WebLinkAbout06-22-2016 Board Meeting Minutes06/22/2016 Orange County Sanitation District MINUTES BOARD MEETING June 22, 2016 Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 Minutes of Board Meeting Page 1 of 10 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was called to order by Chair John Nielsen on June 22 , 2016 , at 6 :05 p .m ., in the Administration Building. Director Dave Shawver del ive red the invocation and led the Pledge of Allegiance . The Clerk of the Board declared a quorum present as follows : ACTIVE DIRECTORS AL TERNA TE DIRECTORS x John Nielsen , Chair Allan Bernstein x Gregory Sebourn , Vice Chair Doug Chaffee x Tom Beamish T im 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 x Steven Jones Kris Beard Jim Katapodis x Erik Peterson x Robert Kiley Michael Beverage x Peter Kim Michele Steggell A Lucille Kring James Vanderbilt x Greg Mills Diana Fascenelli x Richard Murphy Shelley Hasselbrink x Steve Nagel Cheryl Brothers A Glenn Parker 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: J im Herberg , General Manager; Bob Gh irell i, 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 ; Marc Brown ; Jennifer Cabral ; Don Cutler; Michael Dorman ; Al Garcia ; Tina Knapp ; Randy Kleinman ; Mark Manzo ; Jeff Mohr ; Wendy Sevenandt and MarcoPolo Velasco. 06 /22/2016 Minutes of Board Meeting Pa ge 2 of 10 OTHERS PRESENT: Brad Hogin (General Counsel); Bob Ooten (Alternate Director CMSD); Mike Beverage (Alternate Director YLWD); Patrick Shields, IRWD; Jose Zepeda, IRWD; and Jay Humphrey, resident. PUBLIC COMMENTS: Local residents Mr. Jay Humphrey and Mr. Kevin Nelson, spoke in regard to the Southwest Costa Mesa Trunk Project 6-19 and the Talbert Nature Preserve. SPECIAL PRESENTATIONS: Chair Nielsen called upon Ed Torres, Director of Operations & Maintenance, who presented a 25-year Employee Service Award to MarcoPolo Velasco, Associate Engineer -Division 830. REPORTS: Chair Nielsen provided an update on the recent Legislative and Public Affairs (LaPA) meeting including information regarding: Orange County Department of Education's Inside the Outdoors programs which reaches 5th graders through the Drip Drop Traveling Scientist, and Scientists of the Sewer which is a weeklong, hands on, wastewater treatment laboratory program for high school students and the ACC-OC Golden Hub Award OCSD received for the Newport Beach Construction Outreach Program. Chair Nielsen also reported on the status of SB 163 and the continued effort to work with Senator Hertzberg's Office and AB 2022, the water bottling bill, where Jim Colston, OCSD's Director of Environmental Services, testified on our behalf at the Senate Environmental Quality committee; the bill passed through with a 7-0 vote and the next steps are working with the Water Board and the Governor's Office. Chair Nielsen stated that the following letters of support were approved and sent by the LaPA Committee: Water Resources Development Act of 2016 (S. 2848) and Water Recycling Acceleration Act of 2015 (H.R.2993). General Manager Jim Herberg reported on the following: Heal the Bay's Orange County Beach Water Quality report card with A+ to B grades for both summer and winter; the objectives and progress of the first agency-wide employee engagement survey; upcoming dates for Director excursions on the OCSD Nerissa: August 18 (Trawl) and September 21 (Rig Fishing); and the closure of OCSD Administrative Offices on Monday, July 4th (Independence Day). Chair Nielsen announced that the OCSD/OCWD Joint Open House will take place on August 13th at 10:00 a.m. and encouraged all to attend. 06/22/2016 Minutes of Board Meeting Page 3 of 10 CONSENT CALENDAR: 1. 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 May 25, 2016. AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Kring; Parker; and Tinajero 2. IRVINE RANCH WATER DISTRICT SOLIDS AGREEMENT EXTENSION (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Approve Amendment No. 1 to the Agreement for Transfer of Wastewater Solids Residuals between the Irvine Ranch Water District (As Successor to County Sanitation District No. 14) and Orange County Sanitation District, transferring solids from Irvine Ranch Water District's Michelson Water Recycling Plant to the Orange County Sanitation District Wastewater System and reimbursing the Orange County Sanitation District for its costs, in a form approved by General Counsel. AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Kring; Parker; and Tinajero 3. OWNER CONTROLLED INSURANCE PROGRAM (OCIP) ADMINISTRATOR'S CONTRACT PAYMENT (Celia Chandler) MOVED. SECONDED, AND DULY CARRIED TO: A. Authorize an increase of $100,000 to the current FY 2015-2016 budget of $150,000, increasing the total amount to not exceed $250,000 for the Owner Controlled Insurance Program Administrator (Aon Risk Services West, Inc.); and B. Authorize a not-to-exceed annual amount of $250,000 in the budget for the Owner Controlled Insurance Program Administrator (Aon Risk Services West, Inc.), for the following three (3) fiscal years thereafter. 06/22/2016 Minutes of Board Meeting Page 4 of 10 AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Kring; Parker; and 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 MAY 2016 (Lorenzo Tyner) Received and filed the report of the Investment Transactions for the month of May 2016. 5. COMMITTEE MINUTES (Clerk of the Board) Received and filed the approved minutes of the following standing committees: A. Operations Committee meeting of May 4, 2016 B. Administration Committee meeting of May 11, 2016 C. Legislative and Public Affairs Committee meeting of May 10, 2016 D. Steering Committee meeting of May 25, 2016 OPERATIONS COMMITTEE: Committee Chair Withers stated a correction to Item No. 9, contractor name should read HOR Engineering, Inc., as provided in the late communication from the Clerk of the Board. 6. ON-CALL CONTRACTOR SUPPORT SERVICES (Ed Torres) MOVED, SECONDED, AND DULY CARRIED TO: Approve Amendment No. 1 to the On-Call Contractor Support Services Contract, Specification No. S-2011- 483BD, with Jamison Engineering Contractors, Inc., providing for construction support, extending the contract period for a four month period from July 1, 2016 to October 31, 2016, with no increase to the contract amount. AYES: NOES: ABSTENTIONS: ABSENT: 06/22/2016 Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Kring; Parker; and Tinajero Minutes of Board Meeting Page 5of10 7. PLANT WATER SYSTEM REHABILITATION AT PLANT NO. 2, PROJECT NO. P2-101 (Rob Thompson) MOVED. SECONDED. AND DULY CARRIED TO: Approve a project budget increase of $150,000 for Plant Water System Rehabilitation at Plant No. 2 included in the Proposed Budget for Fiscal Years 2016-17 and 2017-18 scheduled to be approved at the June 22, 2016 Board of Directors meeting. AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Kring; Parker; and Tinajero 8. HEADQUARTERS COMPLEX, SITE AND SECURITY, AND ENTRANCE REALIGNMENT PROGRAM, PROJECT NO. P1-128 (Rob Thompson) MOVED. SECONDED. AND DULY CARRIED TO: A. Approve a Professional Services Agreement with LSA Associates, Inc. to provide environmental services for the preparation of a California Environmental Quality Act compliant document for the Headquarters Complex, Site and Security, and Entrance Realignment Program, Project No. P1-128 for an amount not to exceed $420,927; and B. Approve a contingency of $42,093 (10%). AYES: NOES: ABSTENTIONS: ABSENT: C. Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Kring; Parker; and Tinajero 9. HEADQUARTERS COMPLEX, SITE AND SECURITY, AND ENTRANCE REALIGNMENT PROGRAM, PROJECT NO. P1-128 (Rob Thompson) MOVED. SECONDED, AND DULY CARRIED TO: A. Approve a Professional Design Services Agreement with HDR, Engineering Inc. to provide architectural and engineering design services for the Headquarters Complex, Site and Security, and Entrance Realignment Program, Project No. P1-128, for an amount not to exceed $11,785,709; and 06/22/2016 Minutes of Board Meeting Page 6of10 B. Approveacontingencyof$1,178,571 (10%). AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Kring; Parker; and Tinajero ADMINISTRATION COMMITTEE: 10. IBM TIVOLI MAXIMO AND WEBS PH ERE (ENTERPRISE ONE) ANNUAL SUBSCRIPTION AND SUPPORT (Lorenzo Tyner) MOVED. SECONDED. AND DULY CARRIED TO: A. Authorize purchase of an annual licensing and maintenance agreement for IBM Maximo and WebSphere software and support using Dataskill, Inc. in the amount of $180, 166.41 for one year; and B. Approve a contingency of $36,033 (20%) for additional licenses identified in the current Maximo implementation plan. AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Kring; Parker; and Tinajero 11. FY 2016-17 USE CHARGES FOR SANTA ANA WATERSHED PROJECT AUTHORITY (Lorenzo Tyner) MOVED. SECONDED. AND DULY CARRIED TO: Adopt Resolution No. OCSD 16-10 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing Use Charges for the FY 2016-17 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority." AYES: NOES: ABSTENTIONS: ABSENT: 06/22/2016 Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Kring; Parker; and Tinajero Minutes of Board Meeting Page 7of10 12. GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2016-17 (Lorenzo Tyner) MOVED. SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 16-11 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing the Annual Appropriations Limit for Fiscal Year 2016-17, for the District in accordance with the Provisions of Division 9 of Title 1 of the California Government Code." AYES: NOES: ABSTENTIONS: ABSENT: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Kring; Parker; and Tinajero NON-CONSENT CALENDAR: 13. PROPOSED FY 2016-17 AND 2017-18 BUDGET (Lorenzo Tyner) Mr. Herberg provided a brief presentation on the restructuring included in the proposed budget and the overall operating cost increases and decreases presented. RECOMMENDATION: Approve proposed Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY 2016-17 and 2017-18 as follows: Net Operations, Maintenance & Working Capital Worker's Compensation Self Insurance General Liability and Property Self-Insurance Net Capital Improvement Program Debt/COP Service Reduction of Long Term Obligations Intra-District Joint Equity Purchase/Sale(1) 2016-17 $146,356,520 1,090,000 1,390,000 171,290,000 86,664,000 65,000,000 3,400,000 2017-18 $149,854,390 1, 130,000 1,450,000 137,989,000 83, 119,000 1 ,700,000 TOTAL $475. 190.520 $375.242.390 (1lCash to/from Revenue Area 14 (RA 14) in exchange for capital assets to/from Consolidated Revenue Area 15 (RA 15). AYES: NOES: ABSTENTIONS: ABSENT: 06/22/2016 Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc None None Kring; Parker; and Tinajero Minutes of Board Meeting Page 8of10 INFORMATION ITEMS: Chair Nielsen stated that Supplemental Item No. 14 would be not be heard tonight due to additional information being requested by the Steering Committee. 14. PRELIMINARY CLASSIFICATION & COMPENSATION STUDY RESULTS (Celia Chandler) Georg Krammer, Chief Executive Officer with Koff & Associates, will present a preliminary summary of the compensation study findings. AB 1234 REPORTS: Director Ferryman reported out on the following meetings he attended recently: • Santa Ana River Flood Protection Agency, where a State mandated audit is threatening the financial stability of the agency. Members will be asked to pay an additional $200 annually. • National Water Research Institute met with the Water Environment Research Foundation (WERF) to negotiate a possible MOU working with national scope. • Borders Committee, the new PedWest at the San Ysidro border crossing has been completed and will host a Grand Opening on July 15, 2016. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54957.6, 54956.9(d)(2) & 54956.9(d)(1): The Board convened in closed session at 6:26 p.m. to discuss three items. 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 Session Meetings. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 6:53 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel, Brad Hogin did not provide a report. 06/22/2016 Minutes of Board Meeting Page 9of10 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IFANY: Director Murphy requested, and with no objection, the Chair announced that the Board of Directors Meeting scheduled for December 21, 2016 be rescheduled to December 14th; the Administration Committee meeting scheduled for December 14, 2016 be cancelled; and a meeting of the Administration Committee be scheduled for January 11, 2016. ADJOURNMENT: At 6:34 p.m. Chair Nielsen adjourned the meeting until the Regular Board Meeting on July 27, 2016 at 6:00 p.m. 06/22/2016 Minutes of Board Meeting Page 10 of 10