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HomeMy WebLinkAbout2001-03 F'LEO IN THE OFFICE OF THE SECRETARY DRAFT ORANGE COUNTY SW!TMON DISTRICT MINUTES OF STEERING COMMITTEE MEETING APR 2 4 2001 Wednesday, March 28, 2001 :;Y /`-< A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, March 28, 2001 at 4 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 Nixon, General Counsel's Office Norm Eckenrode, Chair Brad Hogin,General Counsel's Office Peter Green, Vice Chair Don Hughes Pat McGuigan, Chairman, OMTS Committee Peer Swan, Director Steve Anderson, PDC Committee Ryal Wheeler Shirley McCracken, Chairman, FAHR Committee STAFF PRESENT: Directors Absent: Blake Anderson, General Manager Jim Silva, County Supervisor Bob Ghirelli, Director of Technical Services David Ludwin, Director of Engineering Greg Mathews,Assistant to the General Manager Gary Streed, Director of Finance Use Tomko, Director of Human Resources Jan Collins, Sr. HR Analyst Use Lawson, Communications Manager Jean Tappan, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM Director Pat McGuigan was appointed Chair Pro Tom until Director Green arrived. (3) PUBLIC COMMENTS There were no comments by any member of the public. Lisa Lawson, Communications Manager, provided a heads-up on events occurring this afternoon in the District Attorney's Investigation into Huntington Beach's sewer system problems. Director Swan expressed concern that this could cause cities to avoid maintaining the sewer lines rather than being fined for knowing there are problems with the system but not having the resources to repair it. (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the February 28,2001 Steering Committee meeting were approved as drafted. Minutes of the Steering Committee Page 2 March 28, 2001 (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Norm Eckenrode reported on the March 23,2001 CASA Board of Directors meeting. Issues discussed were by-laws, expanding the role of associates; litigation funds and grounds for CASA-sponsored litigation. (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson discussed the logistics for tonight's Joint OCWDIOCSD Boards meeting as well as the rules of procedures. A. SARI Line Relocation Project—Review Updated Cost Estimate and seek direction. Staff is reviewing last year's adopted EIR and the most recent cost estimate of the project. David Ludwin, Director of Engineering, reported that the design is continuing. With the recent developments it appears that there will be about an 18-month delay, resulting in a completion of construction no sooner than 2005. The alternatives are being re- evaluated and a contract for a formalized risk analysis of protecting the line in the river will be awarded. A value engineering study was done which Identified several major cost-saving Ideas. The County of Orange has agreed to provide a portion of the funding. The PDC Committee will be reviewing all of the Issues at its April 5 meeting. Lisa Lawson provided an update on the outreach activities and the formation of a citizens advisory committee. Counsel Brad Hogin discussed the ramifications of re- opening the EIR process should a new alternative be considered. The Committee requested that work on the plans and specifications be put on hold until a final decision is reached. B. Introduction to Communications Plan and Legislative Outreach. Lisa Lawson provided the committee with an overview of the new Communications Plan,which details Involvement of employees, management and the members of the Board. Staff will be looking to the directors for advocacy assistance through their affiliations. Director Peter Green stated that the District's sponsorship and assistance with the Talbert Marsh Clean-up and other programs is most beneficial. Several directors mentioned that they are members of committees that could be approached to forward our programs in conjunction with the committee's goals. The committee asked that the plan be presented to the working committees at future meetings. C. Budget Protects for FY 2001.02. The major drivers for next year's budget were identified. Based upon preliminary review,they result in an increase of about$8 million over the current year's budget Gary Streed, Director of Finance, presented an analysis of the major drivers and indicated that there is only about$5.5 million in additional Items that were not included In the list. The preliminary proposed budget could be about 11 percent over the current budget. D. Hellman Ranch Annexation Fees. Blake Anderson reported on discussions with the developer of this property. The development has been scaled down to only 16.3 acres for residential. The remainder of the property is existing wetlands and oil production,as well as a proposed addition to a park. Staff is recommending that annexation fees be applied to only that portion of the property that will be residential. The Steering Minutes of the Steering Committee Page 3 March 28, 2001 Committee agreed to charge annexation fees on the 16.3 acres and asked that an agreement be formalized addressing the possibility of changes in land use In the future. (7) REPORT OF GENERAL COUNSEL Counsel Tom Nixon did not make a report. (8) DISCUSSION ITEMS (Items A-C) A. Reaffirm the Charter of the FAHR Committee with regard to Labor Negotiations. The Steering Committee recommended that the FAHR Committee continue to oversee the labor negotiations process. B. Consider At-will Contracts. Blake Anderson discussed the evolution of at-will contracts with new members of the Executive Management Team beginning in 1995. The General Manager's authority for negotiating new or increased benefits for employees with at-will contracts was considered. The Committee recommended that this item be referred to the FAHR Committee and that the details behind the percentages be presented. C. Review Agenda Items scheduled to be presented to Committees in April. There were no changes. (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 Director Steve Anderson asked that the Steering Committee consider a recruitment for an assistant general manager at a future meeting. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION ANDIOR STAFF REPORT There were none. (12) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for April 25, 2001 at 5 p.m. The next Board Meeting is scheduled for April 25, 2001 at 7 p.m. Minutes of the Steering Committee Page 4 March 28, 2001 (13) CLOSED SESSION The Committee convened at 5:30 p.m. in Closed Session, pursuant to Section 54956.9,to discuss Crow Winthrop Development Limited Partnership v. Orange County Sanitation District, Orange County Superior Court Case No. 000002012. Minutes of the Closed Session are on file with the Board Secretary. The minutes of the Joint Board will report on the actions when they are approved. At 5:35 p.m., the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 5:35 p.m. bmitted by: J Tappan ering Committee Secretary Gip.daYpm$LCwNp Lm,Mee101VAaW3S01 SL/iWf.Wc STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and the Agenda for the Steering Committee meeting held on Wednesday, March 28, 2001,was duly posted for public Inspection In the main lobby of the District's offices on Thursday, March 22, 2001. IN WITNESS WHEREOF, I have hereunto set my hand this 28th day of March, 2001. Penny Kyle, S fe ary of th Board of Directors of Orange CountTSanHatio istdct Posted: March 22 , 2001, 3 , 36 p.m. By: Signature wpCoc\gm\svtomm\posgng,lm ORANGE COUNTY SANITATION DISTRICT BOARD SECRETARY (2) phone: (7141 9622411 m.nleg.dare..: PO Eon 6127 Fountain Valley.CA 9272E-E127 street eeerass: NOTICE OF MEETING loeaa era Avenoe OF THE Fountain Valley.CA 92706-7019 STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT htemb.r A,...Im. 0 . WEDNESDAY, MARCH 28, 2000 - 4P.M Clelee Meneim (Note change in start time for this meeting onlV) Brae suave Perk Oypresa Founwln Valley DISTRICT'S ADMINISTRATIVE OFFICE Fullerton Garden Grove 10844 ELLIS AVENUE Huntington Bach FOUNTAIN VALLEY, CALIFORNIA 92708 Irvine Le Habra Le Pelme Lae Alemiws Newport Beech Orange Pl.tentl. A regular meeting of the Steering Committee of the Board of Directors of Banes Ana Orange County Sanitation District, will be held at the above location, date and seal Sa.cb stenwn time. Tustin Ville Perk Ycrbs Linde County of Orange 9aeltert Districts C..t.Mesa Midway City Water Districts Irvine Ranch 'To Protect Nm Publk Hoehn end the Environment through Excellence in westeweter Systems- STEERING COMMITTEE AND BOARD MEETING DATES FOR THE NEXT TWELVE MONTHS Wednesday, March 28, 2001 Wednesday, April 25, 2001 Wednesday, May 23, 2001 Wednesday, June 27, 2001 Wednesday, July 18, 2001' Wednesday, August 22, 2001 Wednesday, September 26, 2001 Wednesday, October 24, 2001 Wednesday, November28, 2001 Wednesday, December 19, 2001' Wednesday, January 23, 2002 Wednesday, February 27, 2002 Wednesday, March 27, 2002 `Rescheduled from regular fourth Wednesday. STEERING COMMITTEE (1) Roll Call: Meeting Date: March 28, 2001 Meeting Time: 4 p.m. Meeting Adjourned: Committee Members Norm Eckenrode, Chair Peter Green,Vice Chair Steve Anderson, Chair, PDC Committee Pat McGuigan, Chair, OMITS Committee Shirley McCracken, Chair, FAHR Committee Jim Silva, Supervisor Others Mark Leyes, Director Tom Nixon, Counsel Don Hughes Staff Present Blake P. Anderson, General Manager................................. Greg Mathews,Assistant to the General Manager............. JeanTappan. Secretary....................................................... Bob Ghirelli, Director of Technical Services........................ David Ludwin, Director of Engineering................................ Gary Streed, Director of Finance......................................... Lisa Tomko, Director of Human Resources ........................ Jan Collins, Sr. HR analyst.................................................. Lisa Lawson, Communications Manager............................ c: Lenora Crane AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, MARCH 28, 2001 AT 4 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 District's 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 February 28, 2001 Steering Committee meeting. -"mac -2- March 28, 2001 Agenda (5) REPORT OF COMMITTEE CHAIR A. Tonight's Joint Meeting with the Orange County Water District B. Report on March 23 CASA Board Meeting (6) REPORT OF GENERAL MANAGER A. SARI Line Relocation Project—Review Updated Cost Estimate and seek direction (David Ludwin) B. Introduction to Communications Plan and Legislative Outreach (Lisa Lawson) C. Budget Projections for FY 2001-02 (Blake Anderson/Gary Streed) D. Hellman Ranch Annexation Fees (7) REPORT OF GENERAL COUNSEL (8) DISCUSSION ITEMS (Items A-C) A. Reaffirm the Charter of the FAHR Committee with regard to Labor Negotiations (Blake Anderson) B. Consider At-will Contracts (Blake Anderson) C. Review Agenda Items scheduled to be presented to Committees in April (Information item only) (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, April 25, 2001. The next Board Meeting is scheduled for 7 p.m.,Wednesday, 25, 2001. (13) CLOSED SESSION During the course of conducting the business set forth on this agenda as a regular meeting of -3- March 28, 2001 Agenda 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 64956.8, 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 to discuss the following: 1. "Confer with General Counsel re Crow Winthrop Development Limited Partnership v. Orange County Sanitation District, Orange County Superior Court Case No. 000002012 (Government Code Section 54956.9)." B. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session. (14) ADJOURNMENT jt HAWKMAAGENDANSTEENING GOMMrrr@E4IN RDU801 AGENDA,MEETING CALENDAR AND ROLL GALL SHEET.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 Hall) Secretary: Jean Tappan (714)593-7101 (714)962-0356(Fax) E-mail: Itappan(cDocsd.Cpm DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, February 28, 2001 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, February 28, 2001 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 Don Hughes Peter Green,Vice Chair Tom Dawes Pat McGuigan, Chairman, OMTS Committee Ryal Wheeler Steve Anderson, PDC Committee Director Peer Swan Shirley McCracken, Chairman, FAHR Committee Jim Silva,County Supervisor STAFF PRESENT: Gerald Sigler, Director, Guest Blake Anderson, General Manager Bob Ghirelli, Director of Technical Services Directors Absent: David Ludwin, Director of Engineering Greg Mathews, Assistant to the General Manager Lisa Lawson, Communications Manager Jean Tappan, Committee Secretary Jim Herberg, Engineering Supervisor (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 January 24, 2001 Steering Committee meeting were approved as drafted. Minutes of the Steering Committee 1� / Page 2 February 28, 2001 (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Norm Eckenrode announced the CASA Spring conference at the Tenaya Lodge in Yosemite May 3-5. Director Gerald Sigler was the Chair's guest at the meeting. Chair Eckenrode mentioned that he had invited Mrs. Joan Irvine Smith,who has expressed an Interest in the GW RS project, to attend the March 28 Joint Boards meeting. At a prior meeting the Idea of forming a consortium to consider ways for improving the San Gabriel River water quality and In turn the water quality at Seal Beach was presented. After checking around, it turns out that there a group has been formed to discuss these issues. Chair Eckenrode talked with Don McIntyre about including a Sanitation District representative. Staff will maintain contact with Mr. McIntyre and county staff on these issues. (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson reported on the following Issues: A. SARI Line Relocation Project Update Yorba Linda residents were briefed on the project and the need for easements for the first time last week. This has become more controversial than anticipated. Lisa Lawson addressed some of the concerns expressed by the homeowners at the February 21 meeting. A follow-up letter was sent to the attendees the day after the meeting providing additional information and addressing their concerns. Because of the resistance, Dave Ludwin recommended that the agenda item on the easement appraisal procedure for acquisition of easements for SARI line relocation be pulled from the agenda to allow for additional consultation with the PDC Committee and the homeowners. General Counsel Tom Woodruff indicated that the condensed appraisal procedure that is proposed is allowed by law. Full appraisals would be very time consuming and expenses for underground easements that are estimated in value at about$1000 each. There are existing utility easements through the properties and the District's easement would be within the city's easement. Director Steve Anderson suggested placing survey staking along the alignment to assist the homeowners in Identifying the exact location. B. GWRS Update Tom Dawes updated the Directors on the status of the project. There Is a Joint Coordinating Committee(JCC)meeting on March 1 to discuss the results of the financial study. The Groundwater Producers have asked for clarification on several issues. The JCC will be recommending that the day-today management of the project be done by the JCC with delegation of powers to the Orange County Water District's (OCWD) Board. Two of the three directors from each Minutes of the Steering Committee Page 3 February 28, 2001 agency would have to agree and the money for the item would have to be in the budget before It could be submitted to the OCWD's Board. Also, advance notification would be provided to the Sanitation District Board prior to action taking place. Mr. Dawes reported that project implementation involves decisions on how to design, build and start the project. The consulting contract with CDM will be continued for final design. Should the Boards decide to approve the project on March 28,there are approximately another 12 smaller contracts that will be required to complete design. A separate third-party contract will be required for construction management The fifth and final workshop will be held on Saturday, March 3 before the go/no- go decision on March 28. An overview of the project will be presented as well as updates on the financial study,governance and project implementation. Director Peer Swan stated that there has only been two days to review the information submitted to the Groundwater Producers in response to their questions. He expressed concern about the process for approving change orders in amounts over existing delegations of authority. He stated that the CDM contract for final design was a non-competitive award that went against the originally approved process of having the design competitively bid. Mr. Anderson responded that the JCC has asked staff to provide a number of alternatives for setting limits on change orders and that the Sanitation District's own delegation of authority procedure will be one alternative proposed. Mr. Dawes explained the actions over the last six to eight months during preliminary design. He also stated that there were no restrictions to not allow an extension of the CDM contract for final design. Mr.Anderson said that the JCC discussed the issues extensively and agreed with this action. Director Pat McGuigan questioned the amount of time the JCC would be the governing entity. Mr. Dawes said that the JCC would continue overseeing the project with the existing set of rules in the interim until the final rules are approved by both Boards,and would continue governing under the final rules. A full board of directors Is required for approvals and the JCC will be recommending that this authority be delegated to OCW D as they meet twice a month. Additional recommendations will be presented to the JCC and the Boards on how change orders would be handled before finalizing the final rules. C. Huntington Beach Activities Update Bob Ghirelli updated the committee on the County's Watershed Management Program. A core workgroup has been formed to work with the action plan that follows up on the Phase 1 reports. Twenty different areas will be reviewed. The County is trying to obtain Proposition 13 funding. I Minutes of the Steering Committee Page 4 February 28, 2001 OCSD's Summer Monitoring Program is being designed by a technical advisory committee in a series of meetings. Agreement has been reached on the study design and the details are being finalized. Cost for the monitoring program and the study will be about$1 million. Staff is also looking at applying for Proposition 13 funding for these efforts. The Directors questioned whether the USC SeaGrant report will duplicate our efforts. Staff has only just become aware of this project and will be contacting USC for more information. AES, the operators of the power plant across from Huntington Beach, have applied for a fast-track permit to double their capacity. In the hearings the issue of beach contamination was raised. AES has agreed to work with the District during the monitoring period to help duplicate conditions, as well as our assisting with ocean testing when they operate at full capacity. AES is preparing a white paper on their testing and will be doing modeling on their ouffall area. The county will be testing the Talbert Marsh and the Santa Ana River parallel with our studies. A technical advisory team has been formed and separate meetings are being held to discuss nine topics of concern. The media has shown no interest in this process. Jim Herberg reported that a study has been included in next year's budget to consider pathogen reduction. D. Seattle Earthquake Blake Anderson reported that staff contacted Seattle Metro to see how their facilities fared during today's 6.8 magnitude earthquake. Their Emergency Response Center,which is similar to the District's,was activated and it went surprisingly smooth. No major damage was reported. E. Storm Flows Mr. Anderson reported that during the recent rains,the peak was about 100 mgd greater than usual. There were no problems. F. Dairy Dewatering Ponds Today, the first of several dairies ponds was connected to the SARI to allow ciewatering the ponds before rain events. This is a 'first' in the country and will help to control dairy pondwater from entering the stormwater systems. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff reported that the dry weather discharge agreement between The Irvine Company, IRWD and OCSD for the Crystal Cove area has been finalized and a letter sent to the Coastal Commission. �.^ Minutes of the Steering Committee Page 5 February 28, 2001 Mr. Woodruff also discussed a memo in the Directors'folders regarding legal representation on a claim for reimbursement for expenses involved in moving a sewer in Ball Road at the request of the City of Anaheim to accommodate their storm drain. There Is a meeting scheduled Thursday, March 1,to discuss the Crow-Winthrop claim. (8) DISCUSSION ITEMS (Items A-F) A. Local Sewer Service Agreement between IRWD and OCSD for Irvine Business Complex Area and Tustin Marine Corps Redevelopment Area. Jim Herberg explained the proposed terms of the agreement to the Directors. These areas are currently within Revenue Area 7 and the agreement will move them to Revenue Area 14.thereby allowing IRWD to take over the local sewer service. The Directors authorized negotiations. B. Streamlining Concepts: Can we reduce the paperwork between staff and board committees. Greg Mathews and Blake Anderson discussed several examples of ways to reduce time and paperwork for both the staff and the Directors. It was decided that the financial report could be presented quarterly. Additional changes will be presented to the committee for review at a later meeting. C. Consider 4 p.m. start time for March 28 Steering Committee. Because of the early start for the March 28 Joint Boards meeting with OCWD, the Steering Committee will meet at 4 p.m. that day. D. Resolve July Committee meeting date calendars. The July 4 holiday impacts the OMTS and PDC Committees meeting dates and the Directors agreed not to meet in July. There will be meetings in August,which is usually dark. A determination to hold the FAHR Committee meeting in July was not finalized. E. Summer Program for Disadvantaged Youth. Blake Anderson introduced an idea that was presented by one of our employees on employing disadvantaged youths In our summer program. He outlined some of the questions that need to be answered as well as some of the conditions for employment, but asked the Directors for direction. Supervisor Silva said he would hope that OCSD could be used as a model for developing a program that could be used throughout County government. The Directors gave their support, and felt that it would be a very worthwhile, and much-needed, program. F. Review Agenda Items scheduled to be presented to Committees in March. These items were reviewed. (9) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS.IF ANY Director Steve Anderson asked about removing the PDC Committee's GWRS project item from the Board agenda. It was decided that it could be pulled as no action was required by the Board at this time. Minutes of the Steering Committee Page 6 February 28, 2001 (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 Wednesday, March 28, 2001 at 4 p.m. The next Board Meeting is scheduled for Wednesday, March 28,2001 at 6:30 p.m. This will be a joint meeting with the Orange County Water District Board to consider proceeding with the Groundwater Replenishment System project. (13) CLOSED SESSION There was no closed session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:48 p.m. miffed by: Tappan ' �✓� S e ing Committee Secretary 4 WNabpmOOKlaerMp CommlfeaW�WU10}}9015LMFNaf Ox STEERING COMMITTEE Meeting Date T0111ds. 03/28/01 3/28/01 AGENDA REPORT tteyy Number Iem Number Orange County Sanitation District X FROM: Blake Anderson, General Manager Originator: Lisa Tomko, Director, Human Resources and Employee Development SUBJECT: Reaffirm the Charter of the FAHR Committee with Regard to Labor Negotiations GENERAL MANAGER'S RECOMMENDATION Reaffirm the Charter of the FAHR Committee with Regard to Labor Negotiations SUMMARY Within the last eighteen months the District concluded labor negotiations with the Orange County Employees Association (OCEA), International Union of Operating Engineers Local 501 and the Supervisor and Professionals Management Team (SPMT). The contract duration for both the OCEA and Local 501 is three years. These agreements both expire in 2002. The contract duration for the SPMT is one year. This agreement will expire on June 30, 2001. Recently, members of the FAHR committee requested that the charter of the FAHR Committee be revisited before the upcoming negotiations begin. The Committee's specific concern relates to its role in the meet-and-confer process and the Committee's ongoing direction to staff and consultants. The Director's handbook states that the FAHR Committee "...recommends policies and procedures regarding personnel, labor negotiations, insurers and coverage, procurement procedures and other related activities as needed or appropriate". Tonight the FAHR Committee is seeking direction from the Steering Committee and the Board regarding the extent of its role in labor relations in anticipation of pending negotiations with the SPMT. From the point of view of staff and the General Manager, it appears to make the most sense for the existing charter of the FAHR to remain as it was originally envisioned in 1994. At that time, then-Chair John Cox, Peer Swan and others conceived of the three-committee system we use today. Each committee has a distinct and logical charter for developing and proposing policy matters that are subsequently approved by the entire Board. Having each committee with specific jurisdictional responsibilities gives staff the advantage of being to work closely, efficiently and effectively with its governing board. The focus our three- committee system provides has given the committees the opportunity to achieve ea�euayenaa�s,ea, g commneew,vaawsao,rARRCWa M,d. Page 1 timely consensus and given staff the ability to execute timely action. In the case of labor negotiations, where the clock is always running, timeliness has great value. With respect to jurisdictional responsibility, it makes sense that labor negotiation responsibilities remain with the FAHR. It is at this committee that all other matters related to budget, staffing, and human resource policies are developed. The Steering Committee has interest in some of these issues (as well as it does with certain operational and capital projects matters). But its discussions are more general and overarching and often are the precursor to the deeper and more substantive discussions that occur within the three committees. As has been its practice in the past, the Steering Committee may elect to provide advice and general direction to the FAHR Committee on matters related to labor negotiations. But in the end, it appears to staff that details and negotiating parameters will emerge from the FAHR Committee, as has happened so effectively over the last six years. PROJECT/CONTRACT COST SUMMARY None 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) ADDITIONAL INFORMATION N/A ALTERNATIVES The Steering Committee could elect to take on the responsibility of directing meet and confer activities. Either as a committee of the whole or by forming an ad hoc subcommittee, the Steering Committee could provide direction to staff and to seek approval from the full board. CEQA FINDINGS N/A ATTACHMENTS N/A G:\w dla'vgenm\Secnng CammI(HW I%WM2801 FAHR Cenler AR Ott Page 2 STEERING COMMITTEE Meeung Date To 8E.of Dir. 03/28/01 AGENDA REPORT 17.Nygiber Item Numter Orange County Sanitation District 6 t7 FROM: Blake Anderson, General Manager Originator: Lisa Tomko, Director Human Resources & Employee Development SUBJECT: At-Will Employment Agreements 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. See attachment 1. SUMMARY In 1995, Don McIntyre was the first employee hired on an at-will basis at the Orange County Sanitation District. Since that time, all newly appointed or newly promoted members of the Executive Management Team (EMT) have entered into at-will employment agreements, as authorized by Policy C10.00. At the present time, the General Manager is authorized to enter into at-will employment agreements with new members of the 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 possess 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 employment agreement. 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 proposed guidelines, in summary, would be: • Salary must be negotiated within the approved salary range identified for the position. • Severance packages will not exceed 6 months salary. • Benefits may differ from those offered to other employees; however, the total benefits package offered to each EMT member(e.g. medical, dental, vision coverage, retirement, LTD, STD, vacation leave, sick leave, etc.) will not exceed (in value) 39% of the incumbent's cash compensation (salary plus any applicable non- C%TEMT fttR 028,0151emn,p Cwrvn 4ou100t Fensem: erzose Page 1 base building merit increase). This 39% value of all benefits to cash compensation rate is a fair value based on the current benefit value of EMT members and the market. See attachment 2. ' • 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 after results are first reported to the Finance, Administration and Human Resources Committee. Market would be 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 eight members of the EMT are currently not participating in the at-will program due to various circumstances. 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 reports. It is necessary to modify a bargaining unit for the classification of Assistant to the General Manager effective July 1, 2001. This classification is currently in the Professional bargaining unit. As a direct report of the General Manager and based on the nature of the work performed, the General Manager recommends that this classification should be moved to the Executive Management Team group. This change, effective July 1, 2001 is consistent with the provisions of the Employer— Employee Relations Resolution 99-24. See attachment 3. PROJECTICONTRACT COST SUMMARY Additional cost of EMT benefit compensation packages for FY01/02 compared to present EMT benefit compensation packages is small, approximately $72,000. Increased costs will be incurred related to minimal additional vacation time, increased sick-leave payouts, etc. BUDGET IMPACT 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) Budget impact should be negligible in comparison to existing EMT compensation packages. ADDITIONAL INFORMATION N/A ALTERNATIVES G IWi'APen0a Reoon 03]B 015iaenn0 Comm finy do( .1.1.: MOM Page 2 • 1. Require individual at-will employment agreements be approved by the Board of Directors. 2. Establish more stringent guidelines for at-will employment agreements than proposed in the attached policy. CEQA FINDINGS N/A ATTACHMENTS 1. Proposed at-will policy for EMT members. 2. Benefit Rate Value chart. 3. Human Resources Policy and Procedure C10.00, Exhibit A, Salary Schedule. c�rtuoe,a.e.nwe+msea�smnnacm.�awm Page 3 Orange County Policy Number: C180.00 DRAFT Sanitation District Effective Date: 4/25/2001 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 Team 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 Team members on an "al-will"basis. Such status shall be memorialized by a written employment 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 provislons of this policy or any prior Board action,the General Manager is authorized to periodically adjust the rate of compensation and benefits for Executive Management employees who have signed"at-will"agreements so long as no adjustment exceeds the compensation permitted by the applicable salary range and the value of all benefits does not exceed 39 percent(39%)of the incumbent's compensation (salary plus any applicable non-base building merit increase). 4.3 Notwithstanding any other provisions of this policy or any prior Board action, the General Manager may provide for compensation agreements for"at-will"employees, as well as severance agreements, in accordance with the following guidelines: 4.3.1 Salary must be negotiated within the approved 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"al-will"employee(e.g. medical,dental,vision coverage, retirement,LTD, STD, vacation leave, sick leave, etc.)may not exceed (in value)39 percent(39%)of the incumbent's compensation (salary plus any applicable non-base building merit increase), 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. Page 1 of 2 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"employment agreement. 5.2 Each"at-will"employment agreement 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. 6.0 EXCEPTIONS 7.0 PROVISIONS AND CONDITIONS 7.1 The provisions of this policy shall apply only to Executive Management Employees. 6.0 RELATED DOCUMENTS Page 2 of 2 Orange County Sanitation District Classifications By Employee Group Executive Management Pay Hourly Monthly Annual Hourly Monmly Annual FLSA Rang¢ Minimum Minimum Minimum Maximum Maximum Maximum Classifications Status E27 78.088 13.535 $162.423 7&OBS 13.635 $162.423 General Manager Exempt E20 0.000 $0 0 $0 Assistant General Manager Exempt E19 43.168 7,482 $89,789 89.319 12015 $144,184 Direcor W Engineering Exempt E19 43.168 7,482 589,789 69.319 12015 $144.184 Director of Operations B Maintenance Exempt _- _ _ E19 43.188 7,/82 2�.789 BB.319 12015 $114,184 Directord General Services Anminisha Exempt E19 43.168 7,482 I $89,788 89.318 12015 $1/6,184 Director of Technical Services Exempt E78 42580 7,387 588.568 - W1080 11,970 5143,845 Wrecierot Fxlance Exempt E18 62580 7,381 $88,586 69.080 11,870 $143.645 Director of hsortnation Technology Exempt E17 37.571 6,512 $78.148 59.314 10281 $123.373 Oireclor of Human Resources Exempt E13 33218 5,761 -:'$%135 _. _-47.008 _k �*.717 4asislenttoths:Gerunl Manager Exempt E13 33.238 5,761 569,135 47.008 8.148 $97,777 Communications Services Manager Exempt Orange County Sanitation District Classifications By Employee Group Professional Pay Hourly Monmly Annual Hourly YomYy Annual FLSA Range Minimum Minimum Minimum Maximm u Maxinnm Maximum CMsaMcations Statue E14 34.849 6.040 $72.486 49.321 8.549 $102,588 Chief Scientist Exempt _. C-12 33228 5,781 569143$ 47,0O111 GA" $BZ.]-TA Exempt E13 33238 5.761 $69,135 47.069 %148 597,777 Senor Engineer Exempt E12 31.665 5,489 $65,863 44.798 7,785 $93.180 Senior Scientist Exempt E12 31.665 5.489 $65,863 44.798 7,765 $93.180 -Senior Regulatory Specialist Exempt Ell 30.124 5,221 562658 42.618 7,387 $88.645 Engineer Exempt . . _ _ _ _. Eii 30.126 5227 562,858 42.818 7,387 $88.645 RStrmegic Implementation Leader Exempt E1D 28.645 4,965 $59,584 40.578 7,034 $64,402 Secretary to the Board of DireMrs Exempt E9 27.338 4.739 $56.a63 38.702 6.708 $80,500 Principal Administrative Analyst Exempt E9 27.338 4,739 $%am 36.702 6.708 $80.5D0 Principal Engineering Associate Exempt E9 27.338 4,739 f5&683 38.702 8,708_ $80.500 Pro)ect Specialist Exempt E9 27.338 4,739 - S5&883 35.702 6,708 $80.500 Regulatory Specialist Exempt E9 27.338 4,739 S56,883 38.702 8,708 S80,500 _Sdentlsl - Exempt _. E9 27.338 4,739 S5&863 38.702 8,708 580,500 Principal Accountant Exempt _ . _ _ E9 27.338 4,739 558,883 38.702702 702 6,708 $80,500 Principal Financial Analyst Exempt Ell25.899 1,506 554,078 36.789 8,377 _ f78.821 Associate Engineer III Exempt Ell 25.999 4.566 $54,678 -. - 3&709 - 6.377 $78.527 Principal EnNronmantal Specialist Exempt E8 25.999 4,506 $54,078 36.789 6,377 $76,521 Safety$Emergency Response Special Exempt . _ E7 26.793 1297 E51.569 35.083 6,081 $72,973 Programmer Analyst Exempt E7 24.793 4.297 $51,589 35.083 6,081 $72.973 Computer Ha dvrare Specialist Exempt E7 24.793 4,297 $51.569 35.G83 6.051 $72.973 Telecommunications Specialist Exempt _. _ _ _. E7 24.793 4297 $51,569 3SA83 B4OB1 f72,973 Maintenance Planner Exempt -_ _ E7 24.793 6297 51 3&083 6.081 $72,973 Contrails Atlministnlor Exempt E7 24.793 6297 $51,568 35.083 6,O07 572,973 Engineering Contracts Administrator Exempt E6 23.593 4,009 549.073... . 33.371 5,784 .Ii Principal Laboratory 8 Research Amaly; Exempt Ell 23.593 6,089 349,073 33.371 5.781 5d .1/2 SmbrMnrinielrative Analyst Exempt ES 22.481 3,897 SI6,760 31.798 5$12_ 568,140 Assacia0e Engineer II Exempt ES 22A81 3.897 f46,760 31.798 5,512 SB8,140 SeniorAcceuntanl Exempt E5 22A81 3,897 f46,700 31.768 012 $06,140 Senior Financial Analyst Eanq,t E5 22,481 3.897 $46,760 31.798 &512 $66,140 Senior Environmental Specialist Exempt E4 21.414 3,712 $44,541 30.326 5256 $63.078 Safety Representative Exempt E4 21,4114 3.712 f44,541 30.326 5,256 $63.078 Programmer Exempt E4 21A14 3,712 $44.541 30.328 5256 $63,078 Senior Buyer Exempt E3 20.370 3,531 E42370 28.850 5,001 560,008 Aeaoaato Engineer I Exempt E2 19.437 3,389 540,429 27.477 4,763 557,152 Contracts Specialist Exempt El 18.464 3200 3*405 252M - 4,541 554,488 Accountant Exempt E7 18.480 32GG 538,405_ 26.2111 4,511 _ S54,d88 Buyer Exempt El 18A64 3,200 $38p05 26201 4.541 554,496 Financial Analyst Exempt El 18.484 3,200 $38A05 26201 4,541 554,496 Management Analyst Exempt BENEFIT RATE VALUE RECOMMENDATION: use 39%benefit rate value for at-will policy BENEFITS BENEFITS ALTERNATIVES OCSD RATE MARKET RATE 37% Benefit 38%Benefit 39%Benefit 40%Benefit Classification ACTUAL$ ACTUAL% ACTUAL$ ACTUAL% Rate Value Rate Value Rate Value Rate Value Director of Engineering $43.634 33% $54,008 41% $48,707:? - $50,023 $51,340 $52,656 Director of Operations&Maintenance $41,576 33% $51,699 40% $46,727 $470989 $49,252 $50,516 Director of Technical Services $38,809 32% $49,931 37% $45,30$ $46,528 $47,752 $48,976 Director of Finance $38.600 32% $46,823 38% $45.146" $46.366 $47,587 $48,807 Director of Information Technology $37,101 29% $44,428 37% $47,891 $49.185 $50,479 $51,774 Director of HR/ED $32,529 30% $47,340 42% $39,825 $40,901 $41,978 $43,054 Communications Services Manager $27,170 30% $37,955 39% $33.023' $33,915 $34,808 $35,700 Assistant to the General Manager $32,677 36% $34,627 33% $34,017 $34,936 $35,856 $36,775 Notes: Benefit rate value compared to Regular Salary+Bonus+Auto Allowance Total Benefits include: Medicalldental/vision insurance, Life insurance,LTD/STD, Retirement, Defamed Compensation, Employee Assistance Program, accrued Vacation/sick/personal time off and holiday Shaded benefit rate value figures are under market 03121/2001 STEERING COMMITTEE Meetlng Dae TOBd.orolr. 3/29/01 AGENDA REPORT Itpp Number Item Number Orange County Sanitation District - C.• FROM: Blake P. Anderson, General Manager Originator: Jean Tappan, Committee Secretary SUBJECT: April 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 in April. SUMMARY Staff routinely prepares for the Steering Committee a list 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 scheduled to be considered by the Committees in April: OMTS Committee: 1. Huntington Beach Update 2. Annual Report Summary 3. Consider Special Purpose Discharge Permit (SPDP) Wastewater Discharge User and Capital Facility Charges PDC Committee: 1. Ratify Change Order No. 2 to Job No. J-52, Grit Removal System 2. Establish budget for Job No. P2-85-1, Clarifiers E and G Rehabilitation Project at Plant No. 2 3. Approve Consulting Services Agreement re Capital Project Management Process Reinvention 4. Approve Addendum No. 8 to PSA for Job No. J-42, Plant Automation/Reinvention Project 5. Approve plans and specifications for Contract No. 3-2-1, Miller-Holder Trunk Sewer Siphon Replacement 6. Approve Professional Services Agreement for Trunk Sewer Mapping Project FAHR Committee: 1. Recommendation on 2001-02 User Fee 2. Consider 2001-02 Source Control Permit Fees 3. Consider 2001-02 User Fee Ratio Recommendations 4. Overview of Proposed 2001-02 Budget 5. Consider At-Will Contract Policy 6. Report on Communications Action Plan PROJECTICONTRACT COST SUMMARY N/A 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 NA ALTERNATIVES NA CEQA FINDINGS Not a project. ATTACHMENTS NA jt c MA,ft ,,e a IeenngO tlee%01bN nB%Osl of Aft W AMIa!dW eea:ear. erzo9e Page 2