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HomeMy WebLinkAbout07-26-2017 Board Meeting Minutes07/26/2017 Orange County Sanitation District MINUTES BOARD MEETING July 26, 2017 Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 Minutes of Board Meeting Page1 of12 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was called to order by Board Chairman Greg Sebourn on July 26, 2017, at 6:06 p.m., in the Administration Building. Chair 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 Gregory Sebourn, Chair Jesus Silva x Denise Barnes Lucille Kring x Allan Bernstein Chuck Puckett x Robert Collacott Diana Fascenelli x Ellery Deaton Sandra Massa-Lavitt x Barbara Delgleize Erik Peterson x James M. Ferryman Bob Ooten x Phil Hawkins Brooke Jones x Steven Jones Kris Beard x Peter Kim Gerard Goedhart x Al Krippner Charlie Nguyen x Richard Murphy Warren Kusumoto x Steve Nagel Cheryl Brothers A Glenn Parker Cecilia Hupp x Scott Peotter Brad Avery x Tim Shaw Michael Blazey x David Shawver Carol Warren x Fred Smith Virginia Vaughn A Teresa Smith Mark Murphy x Michelle Steel Shawn Nelson x Sal Tinajero David Benavides x Donald Wagner Lynn Schott x Chad Wanke Ward Smith x John Withers Douglas Reinhart x Mariellen Yarc Stacy Berry STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Bob Ghirelli, Assistant General Manager; Celia Chandler, Director of Human Resources; Jim Colston, Director of Environmental Services; Ed Torres, Director of Operations and Maintenance; Rob Thompson, Director of Engineering; Lorenzo Tyner, Director of Finance & Administrative Services; Kelly Lore, Clerk of the Board; Janine Aguilar; Gilbert Barela; Jennifer Cabral; Dean Fisher; Lisa Frigo; Al Garcia; Tom Grant; Tina Knapp; Kathy Millea; Jeff Mohr; Andrew Nau; and Man Nguyen. 0712612017 Minutes of Board Meeting Page 2 of 12 OTHERS PRESENT: Brad Hogin (General Counsel); Natalie Medvedev; Art Perry (CMSD); Alternate Directors, Jesus Silva (Fullerton) and Bob Ooten (CMSD); and Kevin Turner and John Gallivan, Cushman & Wakefield. PUBLIC COMMENTS: No public comments were provided. SPECIAL PRESENTATIONS: None. REPORTS: Chair Sebourn announced that the State of the District will be held Friday, November 17, 2017 at 8:00 a.m. at Mile Square Park Golf Course. General Manager Jim Herberg announced that the Operations and Administration Committees will be dark in August and encouraged the Directors to sign up for the upcoming Orange County Leadership Symposium to be held each Friday from October 6 -November 3. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED. SECONDED, AND DULY CARRIED TO: Approve the minutes of the Regular Joint Meeting of the Board of Directors and Financing Corporation Meeting held on June 28, 2017. AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Shaw; Shawver; F. Smith; Steel; Wagner; Wanke; Withers; and Yarc None None Bernstein; Parker; T. Smith; and Tinajero RECEIVE AND FILE: These items require no action, and without objection, will be so ordered by the Board Chair. 2. COMMITTEE MINUTES (Clerk of the Board) Received and filed the approved minutes of the following committees: A. Operations Committee Meeting of June 7, 2017 B. Legislative and Public Affairs Committee Meeting of June 12, 2017 C. Administration Committee Meeting of June 14, 2017 0712612017 Minutes of Board Meeting Page 3of12 D. Steering Committee Meeting of May 24, 2017 3. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF JUNE 2017 (Lorenzo Tyner) Received and filed the report of the Investment Transactions for the month of June 2017. OPERATIONS COMMITTEE: 4. DIGESTER CLEANING CONTRACT (Ed Torres) MOVED. SECONDED. AND DULY CARRIED TO: A. Approve a Service Contract with Synagro-WWT, Inc., the lowest responsive and responsible bidder, for Digester Cleaning, Specification No. S-2017-824BD, for an 18-month period beginning September 1, 2017 through February 28, 2019, for an amount not to exceed $3,953,958 with four (4) additional 18-month renewal options; and B. Approve a contingency of $395,396 (10%) aggregately per contract period. AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Shaw; Shawver; F. Smith; Steel; Wagner; Wanke; Withers; and Yarc None None Bernstein; Parker; T. Smith; and Tinajero 5. LIGHT DUTY TRUCK COOPERATIVE PROCUREMENT WITH NATIONAL AUTO FLEET GROUP (Ed Torres) MOVED. SECONDED. AND DULY CARRIED TO: Approve the purchase of four light duty trucks using the National Joint Powers Alliance cooperative Contract Number 120716-NAF with National Auto Fleet Group for a total cost of $148,000 in accordance with Ordinance No. OCSD-47, Section 2.03(B), Cooperative Purchases. AYES: NOES: ABSTENTIONS: ABSENT: 07/26/2017 Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Shaw; Shawver; F. Smith; Steel; Wagner; Wanke; Withers; and Yarc None None Bernstein; Parker; T. Smith; and Tinajero Minutes of Board Meeting Page4of12 6. PURCHASE OF SODIUM HYPOCHLORITE, SPECIFICATION NO. C-2017-853BD (Ed Torres) MOVED. SECONDED. AND DULY CARRIED TO: A. Award an Agreement to JCI Jones Chemicals, Inc. for the purchase of sodium hypochlorite (bleach), Specification No. C-2017-853BD, for the period September 1, 2017 through August 31, 2018, for a unit price of $0.51/gallon delivered, plus applicable sales tax, for an estimated annual amount of $626,726.25, with four (4) one-year renewal options; and B. Approve a (10%) unit price contingency. AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Shaw; Shawver; F. Smith; Steel; Wagner; Wanke; Withers; and Yarc None None Bernstein; Parker; T. Smith; and Tinajero 7. REPAIR & REFURBISHMENT OF TWO CENTRAL GENERATION ELECTRICAL GENERATORS, SPECIFICATION NO. S-2017-850BD (Ed Torres) MOVED. SECONDED. AND DULY CARRIED TO: A. Approve a Service Contract to R.A. Reed Electric Company, the lowest responsive and responsible bidder, for Repair & Refurbishment of two Central Generation Electrical Generators, Specification No. S-2017 -850BD, for an amount not to exceed $424,538.62; and B. Approve a contingency of $84,908 (20%). AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Shaw; Shawver; F. Smith; Steel; Wagner; Wanke; Withers; and Yarc None None Bernstein; Parker; T. Smith; and Tinajero 8. STORMWATER MASTER PLAN -PROJECT NO. PS16-01 (Rob Thompson) MOVED. SECONDED. AND DULY CARRIED TO: A. Approve a Professional Services Agreement with Michael Baker International, Inc. to provide engineering services for the Stormwater Master Plan, Project No. PS16-01, for an amount not to exceed $715,300; and B. Approve a contingency of $71,530 (10%). 07/26/2017 Minutes of Board Meeting Page 5 of 12 AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Shaw; Shawver; F. Smith; Steel; Wagner; Wanke; Withers; and Yarc None None Bernstein; Parker; T. Smith; and Tinajero 9. CEQA PLAN 2017-MASTER CONTRACT NO. CEQA PLAN2017-00 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve annual Professional Services Agreements with HOR Engineering, Inc.; Michael Baker International; Helix Environmental Planning, Inc.; ESA; AECOM; and LSA; Master Contract No. CEQA PLAN2017-00, with a maximum annual fiscal year contract limitation not to exceed $400,000 for each Professional Services Agreement; and B. Approve two additional one-year optional extensions. AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Shaw; Shawver; F. Smith; Steel; Wagner; Wanke; Withers; and Yarc None None Bernstein; Parker; T. Smith; and Tinajero 10. SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 1, PROJECT NO. P1-101 (Rob Thompson) MOVED, SECONDED. AND DULY CARRIED TO: Approve a contingency increase of $5,718,000 (4.5%) to the construction contract with W.M. Lyles Company for Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1- 101, for a total contingency amount of $9,518,000 (7.5%). AYES: NOES: ABSTENTIONS: ABSENT: 07/26/2017 Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Shaw; Shawver; F. Smith; Steel; Wagner; Wanke; Withers; and Yarc None None Bernstein; Parker; T. Smith; and Tinajero Minutes of Board Meeting Page 6 of 12 11. REHABILITATION OF FLEET SERVICES BUILDING, BUILDING 8 AND PAVING AREA, CONTRACT NO. P1-115B (Rob Thompson) MOVED, SECONDED. AND DULY CARRIED TO: A. Receive and file bid tabulation and recommendation; B. Award a construction contract to ODC Engineering and Technology for Rehabilitation of Fleet Services Building, Building 8 and Paving Area, Contract No. P1-115B, part of Title 24 Access Compliance and Building Rehabilitation, Project No. P1-115, for a total amount not to exceed $2,235,609; C. Approve a contingency of $223,563 (10%); and D. Approve a budget increase of $791,000 for Title 24 Access Compliance and Building Rehabilitation, Project No. P1-115, for a total budget amount of $18,400,000. AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Shaw; Shawver; F. Smith; Steel; Wagner; Wanke; Withers; and Yarc None None Bernstein; Parker; T. Smith; and Tinajero ADMINISTRATION COMMITTEE: Committee Chair Wanke announced that at the Administration Committee meeting of July 12, information regarding MOU's and benefits in relation to Item No. 12 were requested. He informed the Board that an informational item will be brought forward at a future Administration Committee meeting to address these items. 12. 2018 BENEFITS INSURANCE RENEWAL (Celia Chandler) MOVED, SECONDED, AND DULY CARRIED TO: Approve the Orange County Sanitation District 2018 Benefits Insurance Renewal for the not-to-exceed amounts specified below: A. Employee Benefit Specialists (medical, dental, and vision plans; Employee Assistance Program [EAP])-not-to-exceed $10,507,891; B. Prudential (basic life, short-and long-term disability) -not-to-exceed $598,011; and C. The Standard (EMT & Manager disability) -not-to-exceed $30,000. AYES: NOES: 07/26/2017 Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Shaw; Shawver; F. Smith; Steel; Wagner; Wanke; Withers; and Yarc None Minutes of Board Meeting Page 7 of 12 ABSTENTIONS: None ABSENT: Bernstein; Parker; T. Smith; and Tinajero 13. INDEPENDENT FINANCIAL AUDITORS' COMMUNICATION LETTER FOR THE AUDIT OF THE ORANGE COUNTY SANITATION DISTRICT FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2017 (Lorenzo Tyner) MOVED. SECONDED, AND DULY CARRIED TO: Receive and file the Communication Letter dated June 15, 2017 prepared by the Orange County Sanitation District's independent financial auditors, Macias Gini & O'Connell LLP (MGO). AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Shaw; Shawver; F. Smith; Steel; Wagner; Wanke; Withers; and Yarc None None Bernstein; Parker; T. Smith; and Tinajero 14. SETTLEMENT AGREEMENT FOR CHARGES AND FEES OWED BY ONE INDUSTRIAL WASTEWATER DISCHARGE PERMITTEE (Lorenzo Tyner) MOVED. SECONDED. AND DULY CARRIED TO: Approve the settlement agreement negotiated by the General Manager for the collection of charges owed for sanitary sewer service charges, plus interest of 6.00%, with Thompson Energy Resources, LLC, in a form approved by General Counsel. AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Shaw; Shawver; F. Smith; Steel; Wagner; Wanke; Withers; and Yarc None None Bernstein; Parker; T. Smith; and Tinajero 15. DEFERRED PAYMENT AGREEMENT FOR CHARGES AND FEES OWED BY ONE INDUSTRIAL WASTEWATER DISCHARGE PERMITTEE (Lorenzo Tyner) MOVED, SECONDED. AND DULY CARRIED TO: Approve the deferred payment agreement negotiated by the General Manager for the collection of all charges and fees owed for sanitary sewer service charges, plus interest of 6.00% per annum, with Aseptic Technology, LLC, in a form approved by General Counsel. AYES: 0712612017 Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Minutes of Board Meeting Page B of 12 NOES: ABSTENTIONS: ABSENT: Shaw; Shawver; F. Smith; Steel; Wagner; Wanke; Withers; and Yarc None None Bernstein; Parker; T. Smith; and Tinajero STEERING COMMITTEE: 16. TITLE XVI BUREAU OF RECLAMATION FUNDING OPPORTUNITY FOR (SP-173) THE EFFLUENT REUSE STUDY PROJECTS (Robert Ghirelli) Assistant General Manager Bob Ghirelli provided a brief overview of this funding opportunity and history of previously submitted grant applications. MOVED. SECONDED. AND DULY CARRIED TO: Adopt Resolution No. OCSD 17-12 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving and authorizing the application for the Title XVI Water Recycling Projects under the Water Infrastructure Improvements for the Nation (WllN) Act Effluent Reuse Feasibility Studies Program Grant funds and the execution of grant documents with the United States Department of the Interior, Bureau of Reclamation." AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Shaw; Shawver; F. Smith; Steel; Wagner; Wanke; Withers; and Yarc None None Bernstein; Parker; T. Smith; and Tinajero Director Tinajero arrived at 6:14 p.m. 17. ORANGE COUNTY SANITATION DISTRICT RESPONSE TO GRAND JURY REPORT (Jim Herberg) Mr. Herberg provided a history and overview of this item. He also stated that the County of Orange and Orange County Fire Authority were also mentioned in the Grand Jury report in response to a question regarding other agencies that are contracted with Orange County Employees Retirement System. MOVED, SECONDED. AND DULY CARRIED TO: A. Approve the Orange County Sanitation District Response to the Orange County Grand Jury Report entitled "Pension Enhancements: A Question of Government Code Compliance" published May 17, 2017; and B. Adopt Resolution No. OCSD 17-13 entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District establishing a procedure 07/26/2017 Minutes of Board Meeting Page 9of12 to ensure compliance with Government Code section 7507 transparency requirements." AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peatier; Sebourn; Shaw; Shawver; F. Smith; Steel; Tinajero; Wagner; Wanke; Withers; and Yarc None None Bernstein; Parker; and T. Smith Director Bernstein arrived at 6:15 p.m. AB 1234 REPORTS: Director Ferryman stated that he will attend a Border Committee meeting this week and reported on the recent Groundwater Replenishment System Steering Committee meeting where the next steps for final expansion were discussed. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.9(d)(4), 54956.8 & 54956.9(d)(1): The Board convened in closed session at 6:23 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 Nagel recused himself and left the meeting during discussion on Item CS-1 A and Item CS-2. Director Wagner left the meeting at 6:29 p.m. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 6:41 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hagin reported the following in regard to Item CS-3: The Board of Directors unanimously approved (by the following vote) a Settlement Agreement in the matter of City of Los Angeles v. County of Kern. The terms of the settlement are as follows: Kern will not appeal the decision by the Tulare Superior Court; the 2003 Ordinance will remain in effect; permit decisions will be made according to objective criteria; Kern will prepare an EIR, but will collaborate with the plaintiff's sanitation 07/26/2017 Minutes of Board Meeting Page 10of12 agencies; City of Los Angeles' Green Acres farm is determined to be lawful; and the decision will have collateral estoppel and res judicata effect on any future disputes between the parties. AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Bernstein; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; R. Murphy; Nagel; Peotter; Sebourn; Shaw; Shawver; F. Smith; Steel; Tinajero; Wanke; Withers; and Yarc None None Parker; T. Smith; and Wagner Item No. 18 was heard prior to Closed Session, but was voted on after Closed Session. 18. APPRAISAL TO ACQUIRE REAL PROPERTY (Rob Thompson) Director of Engineering Rob Thompson provided an informative PowerPoint Presentation regarding this item, including the target and progress of the project and acquisition history. Mr. Thompson requested that the vote for this item be taken after a related Closed session item was heard. MOVED, SECONDED, AND DULY CARRIED TO: Authorize the General Manager to enter into an agreement with George, Hamilton, Jones, Inc. Real Estate Appraisers & Consultants to conduct an appraisal of real property located at 18429 Pacific Street, 18410-18436 Bandilier Circle, and 18368-18375 Bandilier Circle to prepare the Sanitation District to initiate negotiations to acquire the same property in compliance with Government Code section 7267 .1. AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Bernstein; Collacott; Deaton; Delgleize; Ferryman; Hawkins; Jones; Kim; Krippner; Peotter; Sebourn; Shaw; Shawver; F. Smith; Tinajero; Wanke; Withers; and Yarc Steel R. Murphy and Nagel Parker; T. Smith; and Wagner OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IFANY: None. 07/26/2017 Minutes of Board Meeting Page11of12 ADJOURNMENT: At 6:51 p.m. Chair Sebourn adjourned the meeting until the Regular Meeting of the Board of Directors on August 23, 2017 at 6:00 p.m . Submitted by: 07/26/2017 Minutes of Board Meeting Page 12of12