HomeMy WebLinkAbout07-27-2016 Board Meeting Minutes07/27/2016
Orange County Sanitation District
MINUTES
BOARD MEETING
July 27, 2016
Administration Building
10844 Ellis Avenue
Fountain Valley, California 92708-7018
Minutes of Board Meeting Page 1 of 12
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 July 27 , 2016 , at 6 :06 p .m ., in the Administration
Building . Director Dave Shawver 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 , Cha ir Allan Bernstein
x Gregory Sebourn , Vice Chair Doug Chaffee
x Tom Beamish Tim Shaw
x Steven Cho i 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
x Jim Katapodis Erik Pete rson
x Robert Kiley Michael Beverage
x Peter K im Michele Steggell
x 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
Teresa Sm ith x Mark Murphy
x M ichelle Steel Shawn Nelson
A Sal Tinajero David Benavides
x 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 ; Jim Colston , Director of
Environmental Services ; Lorenzo Tyner, Director of Finance & Administrative Services ;
Celia Chandler, D irector of Human Resources ; Ed Torres , D irector of Operations and
Maintenance ; Kelly A. Lore , Clerk of the Board ; Marc Brown ; Jennifer Cabral ; Michael
Dorman ; Mark Dubois ; Damein Frabizio ; Al Garcia ; Stephanie Good ; Randy Kleinman ;
Laurie Klinger; Tina Knapp ; Mark Manzo ; Laura Maravilla ; Kathy Millea ; Jeff Mohr; and
Andrew Nau .
07 /27 /2016 Minutes of Board Meeting Page 2of1 2
OTHERS PRESENT: Brad Hogin (General Counsel); James Clark, Black & Veatch;
Laura Kalty, Liebert Cassidy Whitmore; Georg Krammer, Koff & Associates; Patrick
Shields, IRWD; and Rich ten Bosch, Black & Veatch.
PUBLIC COMMENTS:
None.
SPECIAL PRESENTATIONS:
None.
REPORTS:
Chair Nielsen provided an update on the recent Legislative and Public Affairs (LaPA)
meeting including information regarding: SB 163-Hertzberg Bill -Wastewater Recycling
Bill, stating that the author has pulled the bill, but has stated he will bring it back next
session; and AB 2022 -Gordon -Bottling GWRS Water Bill, which is scheduled to be
heard by Appropriations Committee by the 1st of August.
Chair Nielsen further reported on recent construction outreach efforts; OCSD's proposed
new website design; and the upcoming Open House to be held August 13th from
10 a.m. - 2 p.m. in collaboration with OCWD.
General Manager Herberg provided information on upcoming Director tour dates on the
Nerissa -August 18 (Trawl) & September 21 (Rig Fishing).
Mr. Herberg then introduced Marc Dubois, Contract & Purchasing Manager, who provided
an informative PowerPoint presentation regarding OCSD's procurement process. Mr.
Dubois responded to questions regarding: possible savings by increasing approval
thresholds; staffing concerns; and legal counsel review process. Mr. Herberg noted that
OCSD recently received the Client of the Year Award from ACEC mostly due to
procurement transparency.
Director Choi arrived at 6:18 p.m.
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 June 22, 2016.
AYES:
NOES:
07/27/2016
Beamish; Choi; Curry; Deaton; Ferryman; Jones; Katapodis;
Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer;
Nielsen; Sebourn; Shawver; F. Smith; Steel; Wanke; and
Withers
None
Minutes of Board Meeting Page 3 of 12
ABSTENTIONS: Berry (Alternate) and M. Murphy (Alternate)
ABSENT: Parker and Tinajero
2. DOIG DRIVE PROPERTY LEASE EXTENSION (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Approve the First Amendment
to the Doig Property Lease; to enter into a three (3) month lease extension of the
Orange County Sanitation District's real property at 7311 Doig Drive, Garden
Grove in a form approved by General Counsel.
AYES:
NOES:
ABSTENTIONS:
ABSENT:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
None
None
Parker and Tinajero
3. CORRECTION TO BOARD ACTION: CHANGE ORDER TO BRENNTAG
PACIFIC CAUSTIC SODA SPECIFICATION NO. C-2013-560 (Ed Torres)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve an additional one-year optional renewal period of the Purchase
Order Specification No. C-2013-560 for 25% Caustic Soda (Sodium
Hydroxide) with Brenntag Pacific for chemical scrubbers at both Plant No.
1 and Plant No. 2, for the period of July 1, 2017 through June 30, 2018, for
a unit price of $560.52 per dry ton (delivery and applicable sales tax
included) for a total estimated annual amount of $280,000; and
B. Approve a (10%) unit price contingency.
AYES:
NOES:
ABSTENTIONS:
ABSENT:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
None
None
Parker and Tinajero
4. AGREEMENT WITH EAST ORANGE COUNTY WATER DISTRICT TO
COLLECT CAPITAL FACILITY CAPACITY CHARGES ON BEHALF OF THE
ORANGE COUNTY SANITATION DISTRICT (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Approve the agreement with
East Orange County Water District for the collection of the Orange County
Sanitation District Capital Facility Capacity Charges.
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AYES:
NOES:
ABSTENTIONS:
ABSENT:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
None
None
Parker and Tinajero
5. WASTE MANAGEMENT PROGRAM (Celia Chandler)
MOVED, SECONDED, AND DULY CARRIED TO: Ratify a change order to P.O.
104652-0B, Specification S-2011-498, issued to Clean Harbors Environmental
Services for waste disposal services for an additional $50,000 for a contract
amount not to exceed $242,500 for the period of July 1, 2015 to June 30, 2016.
AYES:
NOES:
ABSTENTIONS:
ABSENT:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
None
None
Parker and Tinajero
RECEIVE AND FILE: These items require no action; and without objection, will be so ordered
by the Board Chair.
6. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF
JUNE 2016 (Lorenzo Tyner)
Received and filed the report of the Investment Transactions for the month of June
2016.
7. COMMITTEE MINUTES (Clerk of the Board)
Received and filed the approved minutes of the following standing committees:
A. Operations Committee meeting of June 1, 2016
B. Administration Committee meeting of June 8, 2016
C. Legislative and Public Affairs Committee meeting of June 14, 2016
D. Steering Committee meeting of June 22, 2016
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OPERATIONS COMMITTEE:
8. FISH TRACKING STUDY SOLE SOURCE CONTRACT WITH
DR. CHRISTOPHER LOWE -CALIFORNIA STATE UNIVERSITY LONG
BEACH (James E. Colston)
MOVED, SECONDED, AND DULY CARRIED TO: Award a Sole Source Contract
to Dr. Christopher Lowe of the California State University Long Beach to conduct
a fish tracking study in support of the Orange County Sanitation District's National
Pollution Discharge Elimination System (NPDES) Ocean Discharge Permit for the
period August 1, 2016 through June 30, 2018, at a project cost not to exceed
$200,000.
AYES:
NOES:
ABSTENTIONS:
ABSENT:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
None
None
Parker and Tinajero
9. MONTEREY BAY AQUARIUM RESEARCH INSTITUTE OCEAN
ACIDIFICATION AND HYPOXIA MOORING SUPPORT (James E. Colston)
MOVED, SECONDED, AND DULY CARRIED TO: Approve a Service Agreement
to the Monterey Bay Aquarium Research Institute (MBARI) to provide technical
support and training to District staff to develop the in-house ability to operate,
service, and maintain the Orange County Sanitation District's Ocean Acidification
and Hypoxia mooring for the period of July 1, 2016 to June 30, 2017, for an amount
not to exceed $120,000 with the option of four (4) one-year renewals.
AYES:
NOES:
ABSTENTIONS:
ABSENT:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
None
None
Parker and Tinajero
10. INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY CONTRACT
AMENDMENT 2015-2016 (James E. Colston)
MOVED, SECONDED, AND DULY CARRIED TO: Approve Contract Amendment
number 4600001879-001 with Inland Empire Regional Composting Authority
(IERCA) for the Orange County Sanitation District to 1) use farm bed trailers to
transport biosolids to the Inland Empire Regional Composting Facility, and 2) pay
to IERCA for biosolids received and processed at a base fee of $55.00 per wet
ton, plus an administrative fee of $2.00 per wet ton and any other adjustments
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provided for in the original agreement. This Contract Amendment shall serve as
the first annual renewal of three one -year renewal options of the original
agreement in a total annual amount not to exceed $900,000/year for IERCA to
receive and compost up to 50 wet tons per day (Monday thru Friday) of OCSD’s
biosolids.
AYES:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Parker and Tinajero
11. AGREEMENT FOR PURCHASE OF NATURAL GAS, SPECIFICATION
NO. C-2016-778BD (Ed Torres)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve an agreement to Constellation NewEnergy – Gas Division, LLC for
the purchase of Natural Gas, Specification No. C-2016-778BD for the period
August 1, 2016 through July 31, 2017 for a monthly index unit price of
$0.039 per Million British Thermal Units (MMBtu) for a total estimated
annual cost of $296,000, with four (4) one-year renewal options; and
B. Approve unit price contingency of (10%).
AYES:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Parker and Tinajero
12. AGREEMENT FOR PURCHASE OF ANIONIC POLYMER, SPECIFICATION
NO. C-2016-751BD (Ed Torres)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve an agreement to Polydyne, Inc. for the Purchase of Anionic
Polymer, Specification No. C-2016-751BD, for the period
September 1, 2016 through August 31, 2017, for a unit price of $2.605 per
active pound delivered, plus applicable sales tax, for a total estimated
annual amount of $370,000, with four one-year renewal options; and
B. Approve a unit price contingency of 10%.
AYES:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
07/27/2016 Minutes of Board Meeting Page 8 of 12
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Parker and Tinajero
13. 2017 FACILITIES MASTER PLAN – PROJECT PS15-10 (Rob Thompson)
Item No. 13 pulled and heard separately. Vice-Chair Sebourn stated a recusal and
left the meeting while the item was heard.
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve a Professional Services Agreement with Carollo Engineers, Inc. to
provide professional services for 2017 Facilities Master Plan, Project
PS15-10, for an amount not to exceed $3,132,052; and
B. Approve a contingency of $313,205 (10%).
AYES:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Shawver; F. Smith; Steel; Wanke; and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Parker; Sebourn (recusal); and Tinajero
14. SAFETY IMPROVEMENT AT PLANT NOS. 1 AND 2, PROJECT NO. J-126
(Rob Thompson)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve a Professional Design Services Agreement with Arcadis U.S., Inc.
to provide program and engineering design services for Safety
Improvement at Plant Nos. 1 and 2, Project No. J-126, for an amount not to
exceed $1,540,000; and
B. Approve a contingency of $154,000 (10%).
AYES:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Parker and Tinajero
15. PRIMARY TREATMENT REHABILITATION AT PLANT 2, PROJECT NO. P2-98
(Rob Thompson)
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MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve a Professional Design Services Agreement with Black & Veatch to
provide engineering design services for Primary Treatment Rehabilitation
at Plant 2, Project No. P2-98, for a total amount not to exceed $18,141,423;
and
B. Approve a contingency of $1,814,142 (10%).
AYES:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Parker and Tinajero
16. HEADQUARTERS COMPLEX, SITE AND SECURITY, AND ENTRANCE
REALIGNMENT PROGRAM, PROJECT NO. P1-128 (Rob Thompson)
MOVED, SECONDED, AND DULY CARRIED TO: Approve a Broker
Representation Agreement with Cushman & Wakefield to give exclusive authority
to represent the Orange County Sanitation District, at no cost, for the investigation
and potential negotiation to acquire existing office building and/or land for a new
Administration Building in an area near Plant No. 1.
AYES:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Parker and Tinajero
ADMINISTRATION COMMITTEE:
17. REVENUE REFUNDING CERTIFICATE ANTICIPATION NOTES, SERIES
2016B (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Authorize the General
Manager to issue Revenue Refunding Certificate Anticipation Notes, Series
2016B, as two-year fixed-rate obligations, subject to market conditions, in an
amount not to exceed $120,000,000 to replace the $120,850,000 Revenue
Refunding Certificate Anticipation Notes, Series 2014B maturing on November 15,
2016.
AYES:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
07/27/2016 Minutes of Board Meeting Page 10 of 12
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Parker and Tinajero
STEERING COMMITTEE:
18. GENERAL MANAGER’S FY 2015-2016 FINAL YEAR END WORK PLAN
UPDATE (Jim Herberg)
MOVED, SECONDED, AND DULY CARRIED TO: Receive and File the General
Manager’s FY 2015-2016 Work Plan Year End Update.
AYES:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Parker and Tinajero
19. RECEIVE AND FILE THE 2015 INTERNAL SAWPA PRETREATMENT
PROGRAM AUDIT REPORT (James E. Colston)
Hearing no objection, Chair Nielsen ordered the 2015 Internal SAWPA
Pretreatment Program Audit Report received and filed.
20. COMPENSATION STUDY FINAL RESULTS (Celia Chandler)
The Clerk of the Board provided a late communication memo and the Executive
Summary of the Report of the Total Compensation Study to the Directors.
Director of Human Resources, Celia Chandler introduced Georg Krammer, Koff &
Associates who provided a PowerPoint presentation regarding the Compensation
Study overview and methodology. Mr. Krammer reviewed the goals of the study
and survey elements, including the benchmark classifications and the data
collected. The market findings were presented in percentiles according to base pay
and total compensation.
Mr. Krammer responded to questions regarding: comparisons and job analysis
completed via the internet; class series and benchmark levels relative to seniority,
Bay Area community comparisons; methodology between current and the 2014
numbers; incomparable retirement and pension programs; and concerns with cost
of living adjustments.
Hearing no objection, Chair Nielsen ordered the Report of the Total Compensation
Study final results received and filed.
NON-CONSENT CALENDAR:
21. PAYMENT AGREEMENT FOR CAPITAL FACILITIES CAPACITY CHARGES
FOR THE SOURCE IN BUENA PARK (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Approve the payment
agreement negotiated by the General Manager for the collection of all charges and
fees owed for capital facility capacity charges plus interest of 5.5% per annum and
administrative fees with Donald Chae, Manager, The Source at Beach, LLC, The
Source Office, LLC and The Source Hotel, LLC, in a form approved by General
Counsel.
AYES:
NOES:
ABSTENTIONS:
Beamish; Berry (Alternate); Choi; Curry; Deaton; Ferryman;
Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy
(Alternate); R. Murphy; Nagel; Neugebauer; Nielsen;
Sebourn; Shawver; F. Smith; Steel; Wanke; and Withers
None
None
ABSENT: Parker and Tinajero
INFORMATION ITEMS:
None.
AB 1234 REPORTS:
Director Ferryman reported out on the following meetings he recently attended:
Jeff Mosher, Executive Director of National Water Research Institute, will be leaving the
agency in 30 days. An emergency meeting will be held to discuss recruitment.
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 6:56 p.m. to discuss four 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.
Director Jones left the meeting at 7:48 p.m.
RECONVENED IN REGULAR SESSION:
The Board reconvened in regular session at 8:04 p.m.
07/27/2016 Minutes of Board Meeting Page 11 of 12
CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED
SESSION:
General Counsel, Brad Hagin did not provide a report.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IFANY:
None.
ADJOURNMENT:
At 8:05 p.m. Chair Nielsen adjourned the meeting until the Regular Board Meeting on
August 24, 2016 at 6:00 p.m.
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