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HomeMy WebLinkAbout2000-07 DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, July 19, 2000 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, July 19, 2000 at 5 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: OTHERS PRESENT: Directors Present: Thomas L. Woodruff, General Counsel Norm Eckenrode, Chair Anna Piercy, Director Peter Green, Vice Chair Don Hughes Pat McGuigan, Chairman, OMTS Committee Tom Saltarelli, Chairman, FAHR Committee STAFF PRESENT: Jim Silva, County Supervisor Blake Anderson, General Manager Jan Debay, Past Chair of the Board Greg Mathews, Assistant to the General Manager Directors Absent: Gary Streed, Director of Finance Steve Anderson, PDC Committee Lisa Tomko, Director of Human Resources Layne Baroldi, Environmental Specialist Jean Tappan, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM FILED IN THE OFFICE OF THE SECRETARY ORANGE COUNTY SANITATION DISTRICT No appointment was necessary. AUG 2 3 2000 (3) PUBLIC COMMENTS There were no comments by any member of the public. (4) RECEIVE FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the June 28, 2000 Steering Committee meeting were approved as drafted. (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Eckenrode did not make a report. (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson reported that SAW PA had faxed a letter to the District requesting Minutes of the Steering Committee Page 2 July 19,2000 a 30-day delay before certifying the EIR/EIS on the Santa Ana River Interceptor improvements. This will be provided to the Directors at the regular Board meeting prior to considering the EIR/EIS agenda item. A. A Look Ahead: Our Collective Vision. Blake Anderson provided the members with the activities of the past six months and outlined those that are scheduled for the next six months. The members suggested revisions to the Vision and Mission Statements. The EMT will discuss them at its next meeting. An Operating Philosophy has been developed,which emphasizes accountability, balance and communication. Mr. Anderson announced that Lisa Lawson has accepted the position of Communications Manager. Her start date is July 31. The Guiding Principles were briefly discussed. These were developed by staff to form the framework of our organization and reinforce a professional code of ethics. Each department has developed its own vision statement. B. Update on the Five-year Staffing and Businss Plan. Greg Mathews reported that the Five-year Staffing and Business Plan will be presented to the Board in January. It will outline where we are headed and the resources necessary to reach those goals. A list of opportunities for improvement was compiled from comments received in surveys taken last December and January. Mr. Mathews described the activities of the Organizational Opportunities Committee that addressed the results of the surveys and it appears that the major issue is blurred lines of responsibilities. A responsibility conflict resolution model has been developed to help resolve some of the identified problem areas. Once issues are resolved, there could be an impact on staffing levels. Mr. Mathews presented a schedule that outlined the steps necessary for completing the five-year staffing plan by January 2000. Business units are being defined, which are the lowest foundational or core unit, in an attempt to identify commonality or areas of similar responsibility that could provide higher efficiencies. C. Update on Kern County and Kings County Biosolids Activities. Layne Baroldi reported that the CEQA hearing on the Kem County biosolids ordinance has been changed to August 30 in Visalia, California. A response brief is being prepared. At this time, about one-half of our biosolids are being applied in Kem County. Regulators are keeping a close watch on these activities. The Kings County biosolids ordinance is being drafted and staff has reviewed and commented. Most of the concerns expressed were addressed in the revision. Adoption is scheduled within 90 days, after the state-wide general order is adopted. The State Water Resources Control Board issued a programmatic EIR that allows for continuation of Class B land application. A workshop is scheduled for August 3 on the General Order EIR. Minutes of the Steering Committee Page 3 July 19, 2000 Due diligence is underway on the McCarthy Farms property and facilities. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff reported that there was no progress on the Crow Winthrop issue. (8) DISCUSSION ITEMS (Items A-D) A. Increasing Awards within IDEA Program Greg Mathews provided the members with the results of the IDEA Committee's findings on other award programs and the recommendation. Motion: It was moved, seconded and duly carried to recommend to the Board that the award amount for approved IDEA submittals be increased from 10%of the cost savings with a rap at$3,000 to 10%of the first years cost savings with a cap of$10,000. B. At-will Employment Contracts for Executive Management Team Blake Anderson reported that five of the nine Executive Management Team members currently have At-will Employment Contracts that were negotiated with the General Manager. The resolution granting the General Manager authority to negotiate these contracts provides the flexibility to form a cohesive team but does not address several important issues, including severance and work benefits. It is recommended that the General Manager be allowed to offer severance packages to EMT members for up to six months and to offer flexible benefits up to 30%, the current amount for regular employees. All benefits and salary will be within the existing ranges and the contracts are to be voluntary. A report will be made to the FAHR Committee when these contracts are finalized. Motion: 11 was moved, seconded and duly carried to recommend to the Board that the General Manager be authorized to include severance packages and benefits flexibility within existing guidelines. C. The Agenda Items scheduled to be reviewed by the PDC Committee at its August meeting were reviewed. The OMITS and FAHR Committees do not meet in August. D. FY 2000-01 Management Salary Increases Blake Anderson and Lisa Tomko reported on the results of the most recent salary survey and presented the proposed increases for the management team. Several positions will receive base-building increases to bring them to mid-range. Because no range changes are anticipated, the increases are not subject to Board approval. Mr. Anderson also reported that Michelle Tuchman, who left at the end of May, would be getting a pro-rated (11112)adjustment as a result of her efforts over the past eleven months, as these increases are for the past year. Minutes of the Steering Committee Page 4 July 19, 2000 Mrs. Tomko reported on ongoing negotiations with the 501 and SPMT units. (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There was no other business discussed. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEOUENT MEETING There were none. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (12) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, August 23, 2000 at 5 p.m. The next Board Meeting is scheduled for Wednesday,August 23, 2000 at 7 p.m. (13) CLOSED SESSION There was no closed session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:59 p.m. Submitted by: 1 L' aen Tappan ring Committee Secretary Mlxy.peYpxMM1STEEflIM'i LOAIMfREEVpIIUYAg11AW SC Miyuw.px AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, JULY 19, 2000 AT 5 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the Districts Administrative Office not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. In the event any matter not listed on this agenda is proposed to be submitted to the Steering Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b)as an emergency item or that there is a need to take immediate action which need came to the attention of the District subsequent to the posting of the agenda, or as set forth on a supplemental agenda posted not less than 72 hours prior to the meeting date. (1) ROLL CALL (2) APPOINTMENT OF CHAIR PRO TEM, IF NECESSARY (3) PUBLIC COMMENTS All persons wishing to address the Steering Committee on specific agenda items or matters of general interest should do so at this time. As determined by the Chairman, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to five minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot action taken by the Committee except as authorized by Section 54954.2(b). (4) APPROVE MINUTES OF PREVIOUS MEETING Approve draft minutes of the June 28, 2000 Steering Committee meeting. -2- July 19, 2000 Agenda (5) REPORT OF COMMITTEE CHAIR (6) REPORT OF GENERAL MANAGER A. A Look Ahead: Our Collective Vision (Blake Anderson) B. Update on Five-year Staffing and Business Plan (Greg Mathews) C. Update on Kern County and Kings County Biosolids Activities (Bob Ghirelli) (7) REPORT OF GENERAL COUNSEL (8) DISCUSSION ITEMS (Items A-D) A. Increasing Awards within IDEA Program (Greg Mathews) B. At-will Employment Contracts for Executive Management Team (Blake Anderson) C. Review Agenda Items scheduled to be presented to Committees in August. Only the PDC Committee and Ad Hoc Committees will be meeting in August;the other Committees are dark in August. (Information item only) D. FY 2000-01 Management Salary Increases (Blake Anderson) (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (12) FUTURE MEETING DATES The next Steering Committee Meeting is scheduled for 5 p.m., Wednesday, August 23, 2000. The next Board Meeting is scheduled for 7 p.m., Wednesday, August 23, 2000. 1 -3- July 19, 2000 Agenda (13) CLOSED SESSION During the course of conducting the business set forth on this agenda as a regular meeting of the Steering Committee, the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation,or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Directors during a permitted closed session and are not available for public inspection. At such time as final actions are taken by the Board on any of these subjects, the minutes will reflect all required disclosures of information. A. Convene in closed session, if necessary 1. Confer with General Counsel re Claim of Crow Winthrop Development Limited Partnership (Government Code Section 54956.9(b)(3)(C) if necessary B. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session. (14) ADJOURNMENT jt MWP.UNAGENDAWEERINO COMMITTr P ULOT➢]1KO AG6vDN MEETING L DAR MO ROLL ML$HEET.DOG Notice to Committee Members: For any questions on the agenda or to place items on the agenda,Committee members should contact the Committee Chair or the Secretary ten days in advance of the Committee meeting. Committee Chair: Norm Eckenrode (714)993-8261 (Placentia City Hell) Secretary: Jean Tappan (714)593-7101 (714)962-0356(Fax) E-mail: ItaODan @OCSd.COm DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, June 28, 2000 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, June 28, 2000 at 5 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: OTHERS PRESENT: Directors Present: Director Shirley McCracken Jan Debay, Chair of the Board Thomas Nixon, General Counsel Peer Swan, Vice Chair Ryal Wheeler Pat McGuigan, Chairman, OMTS Committee Norm Eckenrode, Chairman, PDC Committee STAFF PRESENT: Tom Saltarelli, Chairman, FAHR Committee Blake Anderson, General Manager Jean Tappan, Committee Secretary Directors Absent: David Ludwin, Director of Engineering Jim Silva, County Supervisor Mike Moore, ECM Manager Jim Herberg, Engineering Supervisor Ted Vitko,Associate Engineer Andrei loan, Project Manager (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no comments by any member of the public. (4) RECEIVE, FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the May 24, 2000 Steering Committee meeting were approved as drafted. (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Jan Debay announced that room reservations have been made for the August 9-12, 2000 CASA Annual Conference in Monterey. Those interested in attending are to contact Jean Tappan by July 12. Minutes of the Steering Committee ' Page 2 June 28, 2000 (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson reported that Charlie McGee has been asked to appear on a future Warren Olney radio show, "Which Way LA",to discuss the beach closure Issues as well as responding on behalf of the District In a Los Angeles Times article on Huntington Beach, One Year Later. There are several projects and studies being funded jointly by the City of Huntington Beach, County of Orange and the Sanitation District. However,the data has not been released as yet. The NWRI has agreed to put together a blue ribbon panel to review the data to ensure the analyses are based on good data. Chair Debay, a member of the NWRI Board, discussed some of the information that she received from that organization, and she has invited Ron Linsky, NW RI's Executive Director, to attend the July 12 Ad Hoc Committee meeting to discuss the Institute's findings. Mr. Anderson announced that the County of Orange has formed a new division on watershed management and will be coordinating efforts throughout the county. Mr.Anderson announced that only the PDC Committee and the Ad Hoc Committee would hold meetings in August. A. Status Report on Beach Boulevard Sewage Spill. Mr. Anderson explained the contractor's construction plan and described how the June 9 spill occurred in La Habra. An estimated 60,000 gallons of sewage flowed through the storm drain, into Coyote Creek and the San Gabriel River and discharging into the ocean at Seal Beach. Mr.Anderson appeared before the Seal Beach city council to explain what happened and take responsibility. The Regional Water Quality Control Board indicated that it is likely that a fine will be assessed, but the amount has not yet been determined. Mr.Anderson stated he would like the flexibility to work out a cost sharing formula with the contractor for the cost of the fine, should it come. Chair Debay complimented Mr. Anderson on the interview published in the Orange County Registerafter his appearance before the Seal Beach city council. B. Development of a Biosolids Management Plan. A decision was made to go forward with a Biosolids Management Plan to take the District to the year 2020. Mike Moore has been assigned to head this effort and he explained what would be covered and the anticipated schedule. Because of the tim e involved, Mr. Moore has stepped down as Manager of the ECM group and will be working full time on the plan, along with Layne Baroldi and a consultant. One item that is being considered is the creation of an educational center on the Kings County site. Director Swan suggested a demonstration project tying a crop to a biosolids applied field. A LIC Davis agricultural agent is being sponsored to assist with research projects on a 40-acre set-aside. C. Issues related to SARI Relocation. David Ludwin, Director of Engineering, and Andrei loan, Project Manager, discussed the environmental,funding and permitting issues that are underway. Director Swan C Minutes of the Steering Committee Page 3 June 28, 2000 asked if realigning the sewer to the south side of the river along Santa Ana Canyon Road had been considered. Staff will consider it before the next PDC Committee. The PDC Committee will discuss the project in detail at its July meeting. (7) REPORT OF GENERAL COUNSEL Counsel Tom Nixon reported that the hearing on the Kern County Biosolids Ordinance is set for August3, 2000. (8) DISCUSSION ITEMS (Items A-D) A. Notify Steering Committee of General Manager intent to execute Funding Agreement re U.S. Bureau of Reclamation/Southern California Recycling Projects Initiative. Jim Herberg reviewed this program,which was first presented to the Steering Committee in April. At that time staff was directed to discuss the program with the CCW D/OCSD Joint Coordinating Committee about a contribution. OCWD is already a participant. In order to have a voice during the discussions, the District would have to become a member participant and the cost would be about$154,000 through 2002.03. The Committee members agreed with staff recommendation to participate for one year and re-evaluate the benefits at the end of the first year on whether to continue participation. B. Recommend that the Board authorize compensation for Chair-appointed alternates for attending Groundwater Replenishment Joint Coordinating Committee meetings. It was moved, seconded and duly carried to forward the recommendation to the Board at its June 28 regular meeting. C. Receipt of unsolicited proposal to Purchase Composting Facility and Biosolids-permitted Land and staff request for direction on how to proceed. Mike Moore explained that this proposal was one of the reasons for developing the Biosolids Management Plan. The OMTS will be reviewing this issue at its regular July 5 meeting. Because of the critical time line, staff was requesting direction on proceeding with the due diligence. The Committee members agreed that due diligence should continue on this property, and that staff should continue to look at land on the east side of the San Joaquin valley. D. The Agenda Items scheduled to be reviewed by the Board's working committees in Jul Iy were reviewed. It was decided that there is a need for the PDC Committee to meet in August. The other Committees will be dark. Minutes of the Steering Committee ' Page 4 June 28, 2000 (9) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY There was no other business discussed. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (12) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for July 19, 2000 at 5 p.m. The next Board Meeting is scheduled for July 19, 2000 at 7 p.m. (13) CLOSED SESSION There was no closed session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:35 p.m. Submitted by: Je ffappan Stang Committee Secretary H Mp OUNONN�TIoe,oy CMM91NILWLnPH14BW II%utBSJx STEERING COMMITTEE weeun9 Dare To Oa.ar eir. 7-26�2000 7-261000 AGENDA REPORT 1k..4 °� 're " ro' Orange County Sanitation District FROM: Blake P. Anderson, General Manager Originator: Yvonne Schwab, Environmental Specialist SUBJECT: INCREASING AWARD MAXIMUM OF THE I.D.E.A. PROGRAM GENERAL MANAGER'S RECOMMENDATION Approve an increase from the current$3,000 maximum award amount to $10,000 maximum award for approved IDEA's that offer significant cost savings. SUMMARY The District's suggestion award program, entitled Incentive for District Employee Achievements (IDEA), was adopted in June 1997 as a replacement for the PRIDE Program, initiated by Board Resolution on May 13, 1981. Under this program monetary awards are given to employees for IDEAs that are deemed to enhance employee safety or could provide a cost savings for the District. Currently, the safety IDEA awards range from$50 -$200. The cost savings IDEAS are awarded as 10%of the first years net annual savings and are capped at$3,000. All District employees up through the Supervisor level are qualified to participate in this program. However,the IDEA must be beyond the scope of the suggester's normal duties and responsibilities to qualify for the award. Making the IDEA Program more lucrative to its contributors should offer more of an incentive for employees to think out of the box and contribute significant cost-savings ideas. According to the Fairfax, VA-based Employee Involvement Assn., suggestion programs are paying off. An association survey of 6,000 companies that use suggestion programs concluded that the businesses save an average of$6,224 for each idea implemented. The Steering Committee during the March 22, 2000 meeting supported staff's proposal to further research the maximum IDEA award amounts and directed staff to develop a recommendation for the same. Two options were provided: 1. A flat 10% award 2. A sliding scale with the total award capped at$20,000 • 10% up to$30,000 • 7%of the difference up to$100,000 • 5%of the difference up to$250,000 • 3%of the difference up to$450,000 Staff recommends the IDEA award be a flat 10% based upon the net annual savings with a $10,000 cap. - Additionally, 10%of the total award over$500 would go to the Employee Activities Committee. Many employees are involved in implementing an idea and by contributing to the EAC all employees would benefit through the EAC picnic, Christmas party etc. L:�TEMP I-nC M7� W.tlz.tl Page 1 PROJECT/CONTRACT COST SUMMARY Since inception of the IDEA Program, $7,835 has been awarded to employees and estimated tangible savings to date is $30,000 as shown in attachment 1. BUDGETIMPACT ❑ This item has been budgeted. (Line item: I ❑ This item has been budgeted, but there are insufficient funds. ® This item has not been budgeted. ❑ Not applicable (information item) Currently this item is not directly budgeted. Costs are captured under Personnel costs for each Department or under General Manager's contingency fund. ADDITIONAL INFORMATION Attachment 2 includes results of a survey done of suggestion programs at other organizations: ALTERNATIVES 1. Develop other suitable modifications of sliding scale proposal. 2. Keep IDEA Program as it exists. CEQA FINDINGS N/A ATTACHMENTS 1. 3-year recap of LD.E.A. Program 2. Survey results: Other organization's suggestion programs 3. L.A. Times article dated February 13, 1997 c�TEMA9eerH0Cann M 72z ,.,. nwu.e-. vxise Page 2 May 9,2000 ATTACHMENTI To: EMT From: I.D.E.A. Program Screening Committee Orange County Sanitation District I.D.E.A. Program FY 97-98 FY 98-99 FY 99-00 44 total ideas 28 total ideas 43 total ideas :>.17gpar ::F.tWd:::: X ootar ii: Recvd :! Dogar is RacJtl I< An9an1 PeymeM Amount ;Paymanl Amount Payment :: ApPt0vetl tAcc1.) Appr4vetl (Aat./ ApW64d:,: (A=i-) 1 $ 100 97-12-03 $ 200 98-07-14 $ 100 99-07-14 2 $ 50 97-12-03 $ 200 98-07-14 $ 100 99-07-28 3 $ 50 97-12-16 $ 200 98-07-27 $ 100 99.07-28 4 $ 200 98.01-14 $ 200 98-09-09 It 100 99-07-28 5 $ 355 98-01-14 $ 200 98-09-23 $ 100 99.07-28 6 $ 200 98-02-10 It 200 98-10-07 $ 100 99.07-28 7 $ 200 98-02-10 $ 200 W12-16 $ 200 99-07-28 6 $ 100 98-02-10 $ 200 99-05.05 $ 200 99-Mll 9 $ 200 98.02-10 $ 200 99-06.16 $ 100 W08.11 10 $ 200 98-03.10 $ 11900 It 50 99.11-02 11 $ 1,655 $ Also 99.11-02 12 $ 1,300 W12-15 13 $ 100 99.12-29 14 $ 200 00.02-23 15 $ 200 00.02-23 16 $ 550 00-03-06 17 Total amount paid as of 4-18.00 $ 7,835 It 100 0o-63.06 18 - $ 100 00.04-05 79 Estimated tangible savings to date $ 30,000 $ 200 00-04-18 $ 4,380 C:TEMPy3-yur uPaaW.AslMb M FY I ATTACHMENT "IDEA"Incentives—Other Organizations 1. City of Los Angeles— 10% of first year savings if NOT part of yourjob duties/responsibilities. 2. Hyperion—No program. 3. Sacramento—No program. 4. EBMUD—Employee Excellence Program—internal competition with recipient receiving a plaque. 5. Central Costa County—Gainsharing Program of 50/50 with employees earning up to $400 annually. 6. King County (Seattle)—Gainsharing Program (complicated formula for pay-out). 7. I.R.W.D. Suggestion Program—Suggestions that provides one-time savings to District will not exceed 10% of the net or$500, whichever is less. Suggestions that provide continuous saving is 15%of net award savings or$750, whichever is less. Safety or intangible =$100. Attachment 3 Souped-Up Air Force Suggestion Box Pays Off ■ Innovation: Many they would only get one legitimate recommendation. - implemented suggestion, spokc. suggestion a month. The systems Over the last three years.the Air man Thud Madden said.Employe• t'ompanits arc also miming out new arc computerised. Force has d Oled out an average of can build up points and turn the rediscovering the Value of Professionally managed and have $3 million a year for suggcmnms in for a vancty of gifts, mcludn real incentives!'he said. that have saved the service an calculators or sports bags. Dec. workers' ideas. According to the Fairfax, Va.. average of about $221 million a s ovally, the division also pays o _ based Employee Involvement year. Neely said. She cited one cash awards ranging from 350 By MVEN GINSBERG Assn_ they're also paying off. An example in which an employee $150.Madden said. w smuerox toss association survey of 0.000 comma. saved the Air Force S60 million in nies that on suggestion programs unneeded aircraft repairs. "We encourage employees WASHINGTON—The Air Force concluded that the busine. save Leekbeed Martin Corp.'s Fed- suggest improvements." Maddt discarded its employee suggestion an average of$6,224 for each idea and Systems Division in Gaithers- mid. "It can be about how to n. program IaatOetober.The program implemented. burg.Md.,has what it calls the Coal the company. a suggestion abm wasn't a failure—in fact, It was se Manufacturers make up the ma- Effectiveness Plus program to an- decision making or an Improv( useful that the service wanted to )only of suggestion-system advo. licit employee recommendations. ment in software development V figure out how to make it bigger, Cates, though many service The program encourages work. know, that the person making e simpler and even more lucrative W businesses are starting W lump on on to submit ideas. online or on suggestion has a certain level Its contributors board.Martin mid. paper.by awarding points for each expertise." Air Force officials put their Suggestion programs are simple: heads together and pine up with a They offer employees some way to program they dubbed Innovative submit whatever ideas they dream Development through Emolovce up. The rationale is that workers Awarenns(IDEA). are in the best position to see "There was some discontent in where something could be im. the field about the old system," proved, in every area from health mid Cathy Neely. IDEA program and safety standards to what kind manager. "It was paper-driven; of vending machines might work there were so many process steps, best so many delays." Martin mid the suggestion brat So the Air Force automated it, might work even better in the'90s, _ revised the suggestion process and when workers are often better revamped the reward system at a trained than their predecessors and cost of$3.4 million. which will be consider themselves empowered to spread over the next few years. make decisions. That might sound like a lot of "typically. today's workers are money.but the Air Force says it's more educated than in the past"he tiny compared with the $213 mil. said. and "companies realize that lion in money-saving suggestions people on the front lines often the program generated last year. know more about what's going on." The Air Force isn't alone in "A side benefit is you gel em. I rediscovering this low-cost, low- ployess to stink like managers," sech approach to improving the Martin mid. "It's a grooming way an organization is run. After mechanism for future supervisors two decades of such trends as and managers." quality circles and "tool quality There's another benefit for management' programs, many workers tin:money.The standard companies are looking for a little reward Is 10%of the money that a thinking out of the box—the sug- suggestion saves in is first year of gestion box implementation. to a maximum of Suggestion boxes,quality circles S10.000.and a flat fee far successful and total quality management pro- ideas with unquantifiable benefits. grams run on the same currency— Martin mid. employee feedback—but the usual Instead of cash.some companies approaches can be costly and of give employees points for each mixed value. workplace experts useful idea, with the goal of an- my. So companies are going di- couraging workers to keep coming rectly to the source and asking up with ideas.Generally.the points workers what they think. can be exchanged for gifts.such as i "Suggestion systems arc making luggage or office equipment with i a comeback:'said Charles; Martin. more-expensive gifts coating mote an associate professor of mariseting points. I at Wichita Slate University and Managers normally are ex. l co-author of "Employee Sugges. empted Irom these programs p: lion Systems: Boosting Productiv. causeitistheirlobto make sugges- ity and prelim" tions. Martin said, but sometimes 'Thirty years ago most comps- they receive rewards if one of their ones had some sort of program.but subordinates turns in a winning L-k lAj1ke > FIzA al\%Iq_7 STEERING COMMITTEE raeOng Date Tax.ais. 07/19/00 8/n/00 AGENDA REPORT [Tr 1eA1N1nihe Orange County Sanitation District FROM: Blake Anderson, General Manager Originator: Lisa Tomko, Director, Human Resources & Employee Development SUBJECT: At-Will Employment Contracts for the Executive Management Team GENERAL MANAGER'S RECOMMENDATION Approve a new policy that grants authority to the General Manager to enter into at-will employment agreements with each member of the Executive Management Team. SUMMARY At the present time the General Manager is authorized to enter into at-will employment agreements with new members of the Executive Management Team (EMT). He is authorized to negotiate only salary, provided the salary does not exceed the top of the approved range for the EMT position in question. Currently benefits for all EMT members such as accumulated vacation, sick leave, etc., are governed by policies within the Board-adopted Human Resources Policies and Procedures Manual. The employment relationship with at-will employees is different from that of a regular exempt or non-exempt employee. Specifically, at-will employees serve at the pleasure of the General Manager; they inherit reduced job security as there is no requirement for progressive discipline procedures. Because these employees assume additional risk, there is an expectation to negotiate the terms of an at-will contract. The General Manager requests the authorization to enter into at-will employment agreements with each member of the EMT, allowing the General Manager to negotiate salary and benefit packages within the guidelines listed in the attached policy. These guidelines, in summary are: • Salary must be negotiated within the approved salary range identified for the position. • Severance packages will not exceed 6 month's salary. • Benefits may differ from those offered to other employees; however, the total benefits package offered to each EMT member(e.g. vacation leave, sick leave, etc.) will not exceed (in value) 30%of the maximum salary applicable C.ITEMIMliS!e9nnPN..di 6UO Izl.aoc Page 1 to the position. This 30% is the benefit rate used when calculating total EMT • compensation when compared to our nine benchmark agencies. • The value of the total compensation package will be evaluated annually against the market. Adjustments will be considered where market comparisons and other factors indicate they would be appropriate, and results reported to the Finance, Administration and Human Resources Committee. Market is determined through the use of the annual Executive Management Compensation and Benefits Survey. • Approval of each employment agreement by General Counsel (as to form). Four of nine members of the EMT are currently not participating in the at-will program. The additional flexibility requested herein should provide sufficient incentive to get all members of the EMT on an at-will program. This additional flexibility will allow the General Manager to implement a consistent compensation program for all EMT members, as well as provide a powerful managerial tool to effectively manage his direct subordinates. PROJECT/CONTRACT COST SUMMARY Cost is currently unknown but is assumed to be negligible compared to present EMT compensation packages. Increased costs may be incurred related to minimal additional vacation time, increased sick-leave payouts, etc. BUDGETIMPACT ❑ This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) Budget impact should be negligible in comparison to existing EMT compensation packages. ADDITIONAL INFORMATION N;A L\TEMPNLSeennO'a m1160]IRI Gc Page 2 ALTERNATIVES 1. Require individual at-will employment contracts be approved by the Board of Directors. 2. Establish more stringent guidelines for at-will contracts than proposed in the attached policy. CEGA FINDINGS N/A ATTACHMENTS Proposed at-will policy for EMT members. c+TW .Ono-X vnno- (2)aoc Page 3 ' Orange County Policy Number: C180.00 Sanitation District Effective Date: Subject: At-Will Policy Supersedes: New Policy Approved by: 1.0 PURPOSE 1.1 The purpose of this policy is to establish uniform guidelines and procedures for the General Manager's administration of the District's At-Will Agreement with Executive Management members. 2.0 ORGANIZATIONAL UNITS AFFECTED 2.1 Executive Management Team (EMT) 3.0 DEFINITIONS 4.0 POLICY 4.1 The General Manager is authorized to employ Executive Management employees on an"at-will"basis. Such status shall be memorialized by a written agreement signed by the General Manager and the Executive Manager, acknowledging that the Executive Manager shall serve at the pleasure of the General Manager. Any Executive Management employee so employed on the date of adoption of this policy,who has not signed an"at-will"agreement may voluntarily elect to do so, but may not be required to do so. 4.2 Notwithstanding any other provisions of this policy or any prior Board action,the General Manager is authorized to periodically adjust the rate of compensation and of leave accrual for Executive Management employees who have signed"at- will"agreements so long as no adjustment exceeds the compensation permitted by the applicable salary range, or the maximum accrual rate applicable to any employee,established by the Joint Boards of Directors. 4.3 Notwithstanding any other provisions of this policy or any prior Board action,the General Manager may provide for severance benefits and compensation agreements for"at-wilr employees in accordance with the following guidelines: 4.3.1 Salary must be negotiated within the salary range identified for the position. 4.3.2 Severance packages-will not exceed 6 month's salary. 4.3.3 Benefits may differ from those offered to other employees; however,the total benefits package offered to each "at-will"employee (e.g., vacation leave,sick leave,etc.)may not exceed (in value)30 percent(30%)of the maximum salary applicable to the position. Page 1 of 1 I. i 4.3.4 The value of the total compensation package will be evaluated annually against the market. Adjustments will be considered where market comparisons and other factors indicate they would be appropriate, and results reported to the Finance, Administration and Human Resources Committee. Market is determined through the use of the annual Executive Management Compensation and Benefits Survey. 4.3.5 General Counsel shall approve each employment agreement as to form. 5.0 PROCEDURE 5.1 Executive Management employees so employed on the date of adoption of this policy who have not already signed"at-will"agreements may elect to do so. Employees who are hired into the Executive Management Group after the date of adoption of this policy will be placed on an "at-will"contract. 5.2 Each"at-will"contract will be agreed upon between the General Manager and the Executive Management employee in accordance with the guidelines outlined in Section 4.3 of this policy. 5.3 "At-Will"contracts will be reviewed annually to determine if an adjustment is necessary. 6.0 EXCEPTIONS 7.0 PROVISIONS AND CONDITIONS 7.1 The provisions of this policy shall apply only to Executive Management Employees. 8.0 RELATED DOCUMENTS Page 2 of 4J, STEERING COMMITTEE Meetl9gorte To Bd.o Din 1912000 AGENDA REPORT Item Number Item Number _ 9. t. Orange County Sanitation District FROM: Blake P. Anderson, General Manager of Administration Originator: Jean Tappan, Executive Assistant SUBJECT: August Agenda Items for Consideration by Working Committees GENERAL MANAGER'S RECOMMENDATION Review with staff the tentative agenda items scheduled for review by the Working Committees for their meeting in August. SUMMARY Staff routinely prepares a list for the Steering Committee of items scheduled for presentation to the Working Committees and the Board at their next monthly meetings. This allows the Steering Committee the opportunity to review these items early enough to make reassignments in the review or approval process. The following items are tentatively scheduled to be considered by the Committees in August: OMTS Committee: The OMTS Committee will not meet in August. PDC Committee: 1. Ratify Change Order No. 2, Job No. P1-46-2, Chemical Facility Modifications, and Job No. J-53, Chemical Flow Pacing for Primary Influent 2. Approve Addendum No. 7 to Professional Services Agreement for Job No. J-42, Plant Automation 3. Approve budget amendment for Job No. J-39, Investigation and Repairs of Ocean Outfalls 4. Approve Addendum No. 4 to Professional Services Agreement for Job No. P1-37, Primary Clarifiers and Related Facilities 5. Award Professional Services Agreement for Contract No. 2-41, SARI Realignment and Protection FAHR Committee: The FAHR Committee will not meet in August. PROJECT/CONTRACT COST SUMMARY N/A cewwrmpmriuveppe„wewierwtwo�im awn aee�-aw eeA� MMS Page 1 BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CEOA FINDINGS N/A ATTACHMENTS N/A jt C WWMWMWYprynVerwu 71M M fa Npnynm-ez nee..e. eaoae Page 2