Loading...
HomeMy WebLinkAbout2004-04 n , DRAFT REVISED MINUTES OF STEERING COMMITTEE MEETING Wednesday, April 28, 2004 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, April 28, 2004 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 L. Woodruff, General Counsel Shirley McCracken, Chair Don Hughes Steve Anderson, Vice Chair Darrel Cohoon Brian Donahue, Chairman, PDC Committee Brian Brady, Chairman, FAHR Committee STAFF PRESENT: Jim Silva, County Supervisor Blake Anderson, General Manager Bob Ghirelli, Director of Technical Services Directors Absent: Bob Ooten, Director of Operations and Norm Eckenrode, Past Board Chair Maintenance Jim Ferryman, Chairman, OUTS Committee Gary Streed, Director of Finance/Treasurer Jim Herberg, Engineering Manager Jean Tappan, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM FILED IN THE OFFICE OF THE SECRETARY No appointment was necessary. ORANGE rN 1 -•• 1•*1nN DISTRICT MAY 2 6 2004 (3) PUBLIC COMMENTS By , There were no comments by any member of the public. (4) SPECIAL CLOSED SESSION The Committee convened at 4:10 p.m. in Closed Session, pursuant to Section 54957, to discuss General Counsel Services. Minutes of the Closed Session are on file with the Board Secretary. At 5:05 p.m., the Committee reconvened in regular session. The Chair reported that a full discussion occurred among the Committee Members, General Counsel, General Manager, and Consultant Cohoon on the issues of quality of service and overall total costs to the District for legal services, including litigation. The Board expressed a high degree of satisfaction with the excellent quality of Minutes of the Steering Committee Page 2 April 28, 2004 service provided to the Board and Staff by the General Counsel and other attorneys and support staff of his Firm. The Committee also expressed satisfaction with the amounts expended for legal services per year, but requested the General Counsel to provide an annual written report of activities, expenses, and analysis. The Committee requested a report from the General Manager after six months of the District's new employee(Contracts Administrator assuming responsibility for all contracts administration, including construction to assess N any cost savings are realized. (5) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the March 24, 2004 Steering Committee meeting were approved as drafted. (6) REPORT OF THE COMM17TEE CHAIR Committee Chair Shirley McCracken reminded the Steering Committee members that nominations for Board Chair would be opened at the May 26, 2004 meeting with elections scheduled for the June 23,2004 meeting. The Meeting Reimbursements/Compensation Subcommittee, General Counsel and staff reported on the major changes to the proposed ordinance and resolutions pertaining to directors' compensation and policies. The proposed change in the number of compensable meetings detailed in Ordinance OCSD-14 was discussed and no agreement among the Directors was reached. Chair McCracken further reported that a pending legislative Bill (Senate Bill 1272—Ortiz) was directly addressing this subject and General Counsel recommended taking no action until the future of that Bill and any changes to State law are known. MOVED, SECONDED AND APPROVED TO: Convey Report from the Steering Committee to the Board at its May 26, 2004 regular meeting, recommending adoption of a Resolution re Rules of Procedure and a Resolution re Expense Reimbursement Policies. The proposed repeal of Ordinance OCSD-14 and adoption of a new Ordinance re maximum number of meetings will not be acted upon by the Steering Committee, awaiting action on the Ortiz bill. (7) REPORT OF THE GENERAL MANAGER A. June 23, 2004 Steering Committee start time—change to 4 p.m. to accommodate 50th Anniversary Reception General Manager Blake Anderson asked to change the June 23, 2004 Steering Committee meeting start time to 4 p.m. to accommodate the 50' Anniversary reception planned for 6 p.m., prior to the Board meefing. The Directors agreed to the change. B. Tax Revenue Take by State Mr. Anderson provided updated information on the possibility of the State taking a portion of special districts' ad valorem real property tax revenues. The Governor has indicated that if the State takes the revenue for two years, a constitutional amendment would be proposed and actively supported by the Governor, to protect those agencies from future 'takes.' This could mean a reduction in revenues of between $16—33 million per year to OCSD. With the proposed increase in user fees,there will be a shortfall of between $2-19 million per year. Minutes of the Steering Committee Page 3 April 28, 2004 C. Late Breaking News (rf any) re GWRS Bid Award for Advance Water Purification Facilities There was no additional news. D. In-County Biosolids Management Option, News on South County Proposal Mr. Anderson reported on an issue that arose today with the County of Orange IW MA. Staff planned to oppose the proposed composting facility at Prima Descheca in closed session with a subcommittee of the IW MA Board without ever consulting with the agencies involved. The meeting did not comply with Brown Act requirements and our representative and others were told not to attend. After discussions with Supervisor Silva's office, the item was removed from the agenda and the report will be modified to include support for the project by the cities of San Juan Capistrano and San Clemente. It will then be presented to IWMA management for review before moving forward. E. Article re Under/Over Charging User Fees Mr. Anderson commented on the e-mail and newspaper articles on the protest of the District's Sanitary Sewer Service Charges Program. He indicated that there are problems with the non-residential codes developed and assigned by the County of Orange to some properties, but that a staff driven process has been developed to improve the data base and manage the program on an annual basis. A consultant could be hired to do this, but Mr. Anderson stated that he is convinced the District can do it cheaper and better. The FAHR Committee is considering the program and should be making a decision on moving forward within the next two months. (8) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff did not make a report (9) DISCUSSION ITEMS (Items A-B) A. The Agenda Items scheduled to be reviewed by the Board's working committees in May were reviewed. B. The agenda items scheduled to be presented to the Board at tonight's meeting were reviewed. (10) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There was no other business discussed. (11) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. Minutes of the Steering Committee Page 4 April 28, 2004 (12) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (13) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, May 26, 2004 at 5 p.m. The next Board Meeting is scheduled for Wednesday, May 26, 2004 at 7 p.m. (14) CLOSED SESSION The Committee convened at 6:20 p.m. in Closed Session, pursuant to Sections 54956.9(c), 54957.6 and 54957.8, to discuss anticipated litigation, employee compensation and benefit matters and a real property issue. Minutes of the Closed Session are on file with the Board Secretary. Confidential Minutes of the Closed Session held by the Steering Committee have been prepared in accordance with Government Code Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. A report of the recommended actions will be publicly reported at the time the approved actions become final. At 6:55 p.m., the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:55 p.m. miffed by: Je n appan Ste ing Committee Secretary X:'bPMOM'Wl51sa^J LpmiTs'd WM529M SC M/W,95.RAO10 d% ORANGE COUNTY SANITATION DISTRICT p `-n14)ssz-241124n mm: (7141962A 56 mwm.issul .M,aaa,ae: PD. 8"it8127 Faumein valley.0% NOTICE OF MEETING 92728-8127 OF THE �eLtl°`m` 10844 Ellis STEERING COMMITTEE rdmtain Valley.le,,CA G4 927139-7016 ORANGE COUNTY SANITATION DISTRICT lik eoer rwee�e • WEDNESDAY. APRIL 28, 2004 - 4 P.M. cme. 4ne6e;/n Note change of start time Park Buena Pan: Cypress Fourtan Fullerton Fullerian DISTRICT'S ADMINISTRATIVE OFFICE Banal make 10844 ELLIS AVENUE Huntrptan Bea lrurO FOUNTAIN VALLEY, CALIFORNIA 92708 e He6re a Pa ma Los Afe.W. eachNitwpart Basch oranse Placan6a A regular meeting of the Steering Committee of the Board of Directors of seal act Orange County Sanitation District will be held at the above location, date and Sts"za" time. Tuaan Ville Park Ymya UnCe GaatY e1 Orenae lealtery Districts Casco Mesa MCwsy Gry Witter Districts Irvine Ranch T"ma;ntein world class leeaership in wastewater and water resource management. STEERING COMMITTEE AND BOARD MEETING DATES FOR THE NEXT TWELVE MONTHS Wednesday, April 28, 2004 Wednesday, May 26, 2004 Wednesday, June 23, 2004 Wednesday, July 28, 2004 Wednesday, August 25, 2004 Wednesday, September 22, 2004 Wednesday,October 27, 2004 Wednesday, November 17,2004 Wednesday, December 15,2004 Wednesday,January 26, 2005 Wednesday, February 23, 2005 Wednesday, March 23, 2005 Wednesday, April 27,2005 "Tentatively rescheduled from regular fourth Wednesday. STEERING COMMITTEE (1) Roll Call: Meeting Date: April 28, 2004 Meeting Time: 4 p.m. Meeting Adjourned: Committee Members Shirley McCracken, Board Chair Steve Anderson, Board Vice Chair Brian Donahue, Chair, PDC Committee Jim Ferryman, Chair, OMTS Committee Brian Brady, Chair, FAHR Committee Jim Silva, Supervisor Norm Eckenrode, Past Board Chair Others Thomas L.Woodruff, General Counsel Don Hughes Stall Present Blake P. Anderson, General Manager................................ Bob Ghirelli, Director of Technical Services....................... David Ludwin, Director of Engineering............................... Patrick Miles, Director of Information Technology.............. Robert Ooten, Director of Operations& Maintenance........_ Gary Streed, Director of Finance/Treasurer....................... Lisa Tomko, Director of Human Resources........................ Carol Beekman, Communication Services Manager.........._ JeanTappan. Secretary..................................................... c: Lenora Crane NOTE EARLY START AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, APRIL 28, 2004 AT 4 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California Agenda Posting: 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 offices 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. Items Not Posted: In the event any matter not listed on this agenda Is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or because there is a need to take Immediate action,which need came to the attention of the Committee subsequent to the posting of agenda,or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations,please contact the Orange County Sanitation District Board Secretary's office at(714)593-7130 at least 72 hours priorto the scheduled meeting. Requestsmust specify the nature of the disability and the type of accommodation requested. Items Continued: Items maybe continued from this meeting without further notice to a Committee meeting held within five(5) days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adjournment: This meeting may be adjourned to a later time and Items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955 (posted within 24 hours). (1) ROLLCALL (2) APPOINTMENT OF CHAIR PRO TEM, IF NECESSARY .2- April 28, 2004 Agenda (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 three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). (4) SPECIAL CLOSED SESSION: 4-5 P.M. (ESTIMATED) 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 properly; (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 for Evaluation of General Counsel Services pursuant to Government Code Section 54957. (Additional Closed Session items will be considered under Agenda Item 14.) B. Reconvene in regular session. C. Consideration of action, if any, on matters considered in closed session. (5) APPROVE MINUTES OF PREVIOUS MEETING Approve draft minutes of the March 24, 2004 Steering Committee meeting. (6) REPORT OF COMMITTEE CHAIR A. Directors' Compensation Expense Reimbursement Subcommittee: 1. Staff report re Compensation and Meeting Attendance Policy 2. Ordinance No. OCSD-XX, Establishing Board of Directors' Compensation for Meeting Attendance 3. Resolution No. OCSD 04-XX, Establishing a Policy Regarding Board of Directors' Business and Travel Expense Reimbursement and Meeting Attendance and Compensation .3- April 28, 2004 Agenda 4. Resolution No. OCSD 04-XX, Establishing Rules of Procedure for the Conduct of Business of the District. For consideration by the Board at its May 26, 2004 regular meeting. 5. Recommendation to Convey Report from the Steering Committee to the Board at its May 26, 2004 Regular Meeting. (7) REPORT OF GENERAL MANAGER A. June 23, 2004 Steering Committee start time--change to 4 p.m. to accommodate 500 Anniversary Reception B. Tax Revenue Take by State C. Late Breaking News (if any) re GW RS Bid Award for Advanced Water Purification Facilities D. In-County Biosolids Management Option: News on South County Proposal (8) REPORT OF GENERAL COUNSEL (9) DISCUSSION ITEMS (Items A-B) A. Review Agenda Items scheduled to be presented to Committees in May (Information item only) B. Review and consideration of Agenda Items for Board of Directors Meeting of April 28, 2004 (10) OTHER BUSINESS COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY (11) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING (12) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (13) FUTURE MEETING DATES The next Steering Committee Meeting is scheduled for 5 p.m., Wednesday, May 26, 2004. The next Board Meeting is scheduled for 7 p.m.,Wednesday, May 26, 2004. 4- April 28, 2004 Agenda (14) REGULAR 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 to: 1. Confer with General Counsel re Anticipated Litigation pursuant to Government Code Section 54956.9(c): One (1) potential case. 2. Discussion with General Manager(Designated Representative) re Pay Grade Adjustments for Executive Management pursuant to Government Code Section 54957.6. 3. Confer re General Manager's Compensation pursuant to Government Code Section 54957.6. 4. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8. Property: 5455 Dodds Avenue, Buena Park, California Agency Negotiator: James D. Herberg Negotiating Parties: Stage Road Limited Liability Corporation LLC Under Negotiation: Instruction re price, terms, and conditions for the purchase, sale, exchange, or lease of subject property. B. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session. (15) ADJOURNMENT jt H+DEP ENMZMERING CA1.11.1fREEWUPRb1�W 0 ENG.I000 -5- April 28, 2004 Agenda 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: Shirley McCracken (714)765-5247(Anaheim City Hall) Committee Staff Contact: Blake P.Anderson (714)593-7110 General Counsel: Thomas L.Woodruff (714)564-2605 Secretary: Jean Tappan (714)593-7101 (714)962-0356 (Fax) E-mail: ltappan®ocsd.com DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, March 24, 2004 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, March 24, 2004 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 Shirley McCracken, Chair Don Hughes Steve Anderson,Vice Chair Darrel Cahoon Jim Ferryman, Chairman, OMITS Committee Gerhardt Van Drie Brian Donahue,Chairman, PDC Committee Jim Silva, County Supervisor STAFF PRESENT: Norm Eckenrode, Past Board Chair Blake Anderson, General Manager Peer Swan, Director Brady's alternate Bob Ghirelli, Director of Technical Services Gary Streed, Director of Finance/rreasurer Directors Absent: Carol Beekman, Communications Services Brian Brady, Chairman, FAHR Committee Manager Layne Baroldi, Legal & Regulatory Affairs Liaison Jan Collins, Principal HR Analyst Mike Moore, ECM Manager Jean Tappan, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS Gerhardt Van Drie addressed the Committee regarding the refusal of the General Manager to allow a demonstration project at the front entrance before a board meeting. (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the February 25, 2004 Steering Committee meeting were approved as drafted. (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Shirley McCracken announced that reservations for the April 29-May 1 Squaw Valley CASA conference are due to Jean Tappan March 26. She also reminded the directors of the two special workshops; March 31 on the CIP and April 21 on the GW RS program. Minutes of the Steering Committee - - Page 2 March 25, 2004 (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson provided reports on biosolids including the loss of our Nevada site in Nye County and the very favorable comments staff has received from the Grand Jury on our biosolids management program. The Steering Committee agreed with staff recommendation that the standing committees not meet in August. The General Manager and Director of Finance updated the steering committee on the early budget numbers for next fiscal year. At this time a 7.5 percent increase in our operating budget for treatment facilities and various environmental protection programs is anticipated. There will be a one-day meeting of the Orange County Leadership Symposium on April 30. Jim Silva hosted a luncheon last week with several agencies to address ways to cooperate with each other and understand institutional arrangements with other agencies. It was agreed that these meetings will continue with different sponsors for each meeting. The General Manager reviewed the bid results for the GW RS advance water treatment system and discussed the actions the agencies and the design engineers have planned, before reporting to the GWRS Steering Committee on April 12. The recent OC Register news articles and opinion piece about urban runoff and secondary treatment were discussed. Director Ferryman asked the General Manager to respond to the editorial. Mr. Anderson reported that a meeting has been scheduled for April 5 with SAW PA, counsel and Gary Hunt to continue negotiations on the SARI protection or relocation agreement. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff updated the directors on Senator OrtiYs bill that is focused on correcting abuses by some special districts, including limiting compensation, stipends, perks and ethical conduct. No hearings have been scheduled to date. Mr. Woodruff also mentioned that because our property taxes are earmarked for debt payment,they should be safe from any takeover by the stale. An item will be going to the April Board to reaffirm our position. (8) DISCUSSION ITEMS(Items A-B) A. The Agenda Items scheduled to be reviewed by the Board's working committees in April were reviewed. B. The agenda items scheduled to be presented to the Board at tonight's meeting were reviewed. (9) OTHER BUSINESS COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING Director Eckenrode asked that the G W RS visitors center be discussed Minutes of the Steering Committee Page 3 March 25, 2004 (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, April 28, 2004 at 5 p.m. The next Board Meeting is scheduled for Wednesday, April 28, 2004 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:08 p.m. in Closed Session, pursuant to Sections 54956.9, 54957.6, and 54957 to discuss two items of pending litigation, and three items of employment actions , each of which is listed on the published agenda. Minutes of the Closed Session are on file with the Board Secretary. Confidential Minutes of the Closed Session held by the Steering Committee have been prepared in accordance with Government Code Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings.A report of the recommended actions will be publicly reported at the time the approved actions become final. At 6:55 p.m.,the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:55 p.m. mined by: J Tappan &86ring Committee Secretary MYMpMpMW/lSfea�M CmnmiXwlWVMr10.T1dW SL Mi,Nea.M[ STEERING COMMITTEE Meeang Date Toad.ofW. a/zeros sjj a AGENDA REPORT tram Number rtem Numbe Orange County Sanftation District FROM: Blake Anderson, General Manager Originator: Gary Streed, Director of Finance and Treasurer SUBJECT: DIRECTORS COMPENSATION AND MEETING ATTENDANCE POLICY GENERAL MANAGER'S RECOMMENDATION Recommend to the Board of Directors to adopt Ordinance No. OCSD 23, adopting policies and procedures related to attendance, compensation and expense reimbursement for Directors of the Orange County Sanitation District. SUMMARY Members of the Board of Directors are compensated for attendance at Board and Committee meetings and for other instances of District representation in accordance with California Health and Safety Code Section 4733, District Resolution No. OCSD 01-23, and Ordinance No. OCSD-14. Certain expenses associated with the attendance at meetings are also provided to the members. The Board Chair appointed an ad hoc committee of two Steering Committee members to review these documents and to recommend appropriate changes to make them more clear and to ensure there was no doubt about the Board's stewardship of the public's funds and trust. The Committee and the Chair have completed their work and have asked staff and General Counsel to put the recommendations into a revised policy. This policy is attached to this agenda report and will be reviewed at the Committee meeting. Should the Committee decide that the revised policy is appropriate, then an Ordinance will be forwarded the Board for consideration in May. PRIOR COMMITTEE/BOARD ACTIONS There have been several Ad Hoc Committee reports to the Steering Committee during the last six months, but no actions have been taken. Resolution No. OCSD 01-23, establishing rules of procedure for the Board of Directors, was adopted by the Board in November, 2001. Ordinance No. OCSD 14, establishing the rate of compensation for Directors' attendance at meetings, was adopted by the Board in January 2001. H ldeaeagenda4teonng commlltse U 2804 AR a oowernacompensanondw R .nea wwmz Page 1 PROJECT/CONTRACT COST SUMMARY The proposed changes reduce the maximum number of meetings per month that will be compensated for a Directors service, but the impact will depend upon the number of meetings actually attended. No increase in costs will occur. Costs may decrease. BUDGETIMPACT IN 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) ADDITIONAL INFORMATION The existing policies regarding representing the District, attendance at meetings, travel reimbursement and expense compensation could be clarified. The Ad Hoc Committee and the Board Chair have proposed some changes that will remove some potential ambiguity and will make the policies more clear. The proposal clarifies the types of meetings for which Directors will be compensated. It describes four categories of meetings: those authorized by adoption of the policy, those requiring advance authorization by the Board Chair, those not authorized, and those that would normally be authorized but are not because of special circumstances. The last category includes meetings that precede or follow another compensable meeting and those attended by an Alternate Director when the Active Director is present. The proposal implements a per-diem policy for expenses that meets the IRS guidelines and regulations. This proposal, if adopted, will be considered an "accountable plan" by the IRS and will not require receipts to be submitted and will not require reimbursements to be included on the annual W-2. The proposal reduces the maximum number of monthly meetings eligible for compensation. The maximum for the Board Chair is reduced from 10 to 6 meetings per month. The maximum for other Directors is reduced from 6 to 4 per month. It is important to note that, with the exception of the Board Chair who has multiple committee obligations, nearly all Directors attend 3 or fewer meetings per month. ALTERNATIVES Refer the proposed policy to the Ad Hoc Committee for revision CEOA FINDINGS WA ATTACHMENTS 1. April 16, 2004 Memo to Steering Committee from General Counsel re: Rules of Procedure "wmiaw wv�ee "a c�.,n�n.wroasao.a eoowauyca."e"�oo a« Page 2 2. April 21, 2004 Memo to the Board re Senate Bill 1272 (Ortiz) 3. Ordinance No. OCSD-XX re Establishing Board of Directors' Compensation for Meeting Attendance and Repealing Ordinance No. OCSD-14 4. Resolution No. OCSD-04-XX re Establishing a Policy Regarding Board of Directors Business and Travel Expense Reimbursement, and Meeting Attendance and Compensation 5. Resolution No. OCSD-XX re Establishing Rules of Procedure for the Conduct of Business of the District 6. SB1272 (Ortiz) Bill Analysis 7. Editorial dated April 20,2004 N+N0�+3mEilSleBnr9 COmntIPoN4VDMCI80<M EOOMBB[n0�^W^BmIm,.M[ Page 3 LAW OFFICES OF WOODRUFF, SPRADLIN & SMART ATTACHMENT 1 A PROFESSIONAL CORPORATION _ MEMORANDUM TO: Chair and Members of Steering Committee Orange County Sanitation District FROM: General Counsel DATE: April 16, 2004 RE: Rules of Procedure Resolution No. 01-23 relates to Rules of Procedures for the Board of Directors. There has recently been q discussion of a need to make some modifications to this Resolution that would more accurately reflect current Board practices and intent. Towards that end, the attached draft Resolution is before your Committee at this time for review and discussion. The following is a summary of those modifications. Section 1E(4)(d), Rules for Discussion, Debate, and Deliberation by the Board. The current Resolution limits a single Director up to 5 minutes to address the Board. Language has been added to waive this limit at the discretion of the Chair. Section 1J. Regular Business to Come Before the Board of Directors. The current Resolution limits members of the public up to 3 minutes when addressing the Board, and a total of 30 minutes for all public input on each Agenda item, at the discretion of the Chair. One or more Directors have suggested a need for a clarifying amendment—namely, specifically requiring the Board to waive the time limit. Section 1L(1)(a), Steering Committee. There has been a bit of concern on the subject of membership on the Steering Committee. The existing Resolution enumerates the members of the Steering Committee, but makes no provision for the attendance of an alternate in the event a regular Member is unable to attend. Language has been added to clarify that the Vice Chair of each of the three Standing Committees be the designated alternate. It is important to recognize that those 3 Committee Chairs are designated to sit on the Steering Committee, not by virtue of their being a representative of their particular City or District, but rather as a representative of the full FAHR, OMTS, or PDC Committee. It seems logical that only the Vice Chair of that Committee be an appropriate alternate to the Steering Committee Member. Section L(1)(c), OMTS Committee. The current Resolution includes a provision in that the Board representative from each of the three beach cities would have membership on the OMTS Committee. However, this provision has not been adhered to in the past three or four years, and the matter was presented to the Steering Committee in August, 2002. It was the recommendation of the Committee at that time i0aooan\Local April 16, 2004 Page 2 that this requirement be deleted and to allow the Chair to make the appointments, as appropriate. Section 1L(1)(e) Standing Committee Assignments. Currently, there is no provision regarding assignment of the Past Chair to any of the 3 Standing Committees. A provision has now been added stating that the Chair may appoint the immediate Past Chair to the FAHR, OMTS, or PDC Committee. THOMAS L. WOODRUFF GENERAL COUNSEL TLW:pI Attachment cc: Mr. B.P. Anderson askapoan\Local LAW OFFICES OF ATTACHMENT WOODRUFF, SPRADLIN & SMART A PROFESSIONAL CORPORATION MEMORANDUM TO: Chair and Members of the Board of Directors Orange County Sanitation District FROM: General Counsel DATE: April 21, 2004 RE: Senate Bill 1272 (Ortiz)—Special Districts Governance, Including Compensation and Expense Reimbursement You have previously been briefed on the above-referenced measure, which was introduced in the Senate on February 13, 2004, and has subsequently been amended twice, most recently on April 12, 2004, and is presently set for hearing on April 21, 2004. In the event that hearing proceeds as scheduled, I will provide to you an update at the time of your Board Meeting. The measure was introduced by Senator Ortiz, in large part responding to two (2) matters receiving widespread media publicity involving Special Districts and abuses of the permitted compensation and expense allowances under existing state law. One incident was relating to two (2) water agencies in the Sacramento Valley, and the other was water agencies in the San Gabriel Valley here in Southern California. The Bill has received widespread attention and almost universal opposition from all Special Districts, and the associations representing them, including CASA and ACWA. I am attaching, herewith, a copy of the Senate Local Government Committee Consultant's Report of Mr. Peter Detwiler, which I highly commend for your reading. It not only provides you the analysis of this pending Legislative Bill, but is an exceptional writing in terms of historical actions by the State Legislators going back over the past sixty (60) years, and an infusion of the reasonings underlying many of the historical changes that have occurred during that period. Frankly, most of the provisions of the Bill, either have no application to the District, or are no different than the practice presently in effect. Particularly, if your Board adopts the new ordinance and resolution establishing a revised policy for compensation and business expense reimbursement, as recommended by the sub-committee of Directors McCracken and S. Anderson. Perhaps the most noteworthy provision, that has been found objectionable, is Senator Ortiz calling for a roll back of the per meetingfday of service stipend from whatever the present limits are (for OCSD $170 each) to a maximum of $100. 1 would be truly shocked if such a proposal were, in fact, passed and approved by either, much less both bodies of the Legislature. Peter Detwilers report is very candid, and he has an excellent understanding of local government law, having served in his capacity for many years. He notes the serious drawbacks of Senator Ortiz's proposal. ]StIROOS11tLOC81 April 21, 2004 Page 2 An additional requirement of the Bill calls for the governing Board to receive mandatory ethics training on an annual or bi-annual basis. Coincidentally, your General Manager, Blake Anderson, is making a recommendation of that at the forthcoming Steering Committee meeting to be comprised of a presentation, by my office, on an overview of the Political Reform Act, prohibition of interest in contracts law, general conflicts of interest and key provisions of the District's purchasing resolution, and the Rules of Procedure. Lastly, while the Bill, as written, applies only to those Special Districts "governed by an elected governing Board", and therefore, would not be applicable to OCSD, the Consultant has noted that, and if the Bill proceeds forward, that limitation would most certainly be amended so as to encompass all Independent Special Districts, whether elected or appointed Boards. THOMAS L.WOODRUFF GENERAL COUNSEL TLW:jlo Enclosure Addendum: April 21, 2004—3:30 p.m. We have just been notified that the Committee did hear the Bill this morning, and with Senator Ortiz offering several amendments, It was passed and sent to the Senate Appropriations Committee. The key changes are: 1. Large Districts ($2 million population or budget> $100 million)would be authorized ten (10) meetings a month, but still at a maximum of$100 per meeting, with no escalation, as at present. 2. Meetings for compensation would only be publicly noticed Board and Committee meetings, unless attendance was approved in advance at a publicly noticed Board meeting. Hopefully, we will see the printed version of the amendments (which is the only thing you can rely onl) by the time of your Board meeting. asVaooan\Local ATTACHMENT ORDINANCE NO. OCSD- AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING BOARD OF DIRECTORS' COMPENSATION FOR MEETING ATTENDANCE AND REPEALING ORDINANCE NO. OCSD-14 WHEREAS, Members of the Board of Directors are entitled by California Health & Safety Code Section 4733 to receive a stipend as compensation for attendance at meetings, or for each day's service rendered, as a Member of the Board; and, WHEREAS, OCSD has previously established Board of Directors' compensation for meeting attendance; and, WHEREAS, the Board of Directors has previously established the maximum number of meetings or days' service per month, for which they may be compensated; and WHEREAS, the Board of Directors desires to amend the number of compensable meetings and days of service per month in order to reduce District expenditures. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District does hereby ORDAIN: Section 1: That each Director shall receive the sum of One Hundred Seventy ($170) Dollars for attendance at each meeting of the District, or for each day's service rendered as a Member of the Board, by request of the Board; provided, that each Director, other than the Chair of the Board, shall receive compensation for not more than a total of four(4) meetings or four (4) days' service per month. Section 2: The Chair of the Board shall receive compensation for not more than a total of six (6) meetings, or six (6) days' service per month. Section 3: "Meetings" or"Days of Service Per Month" rendered by District's Board of Directors shall be defined by the provisions of the adopted Board of Directors' Policy, set forth in Resolution No. OCSD 04-, as amended. Section 4: Ordinance No. OCSD-14 is hereby repealed. Section 5: This Ordinance shall be effective i r PASSED AND ADOPTED at a regular meeting of the Board of Directors held 2004. Chair, Board of Directors ATTEST: Orange County Sanitation District Secretary of the Board of Directors Orange County Sanitation District Thomas L. Woodruff, General Counsel WS&S-TLW:pj:#1M95;04/20/04-FINAL 2 S ATTAC_HMENT4 RESOLUTION NO. OCSD 04- ESTABLISHING A POLICY REGARDING BOARD OF DIRECTORS' BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT, AND MEETING ATTENDANCE AND COMPENSATION A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING A POLICY REGARDING BOARD OF DIRECTORS' BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT, AND MEETING ATTENDANCE AND COMPENSATION WHEREAS, the District, by Ordinance No. OCSD-23, has established Board of Directors'compensation for meeting attendance in accordance with the authority of California Health and Safety Code Section 4733; and, WHEREAS, Board Members are entitled to a flat fee stipend as compensation for attendance at District meetings, or for each day of service rendered as a member of the Board, together with reimbursement for certain expenses associated with the attendance at District meetings, or other service on behalf of the District; and WHEREAS, the Board of Directors deems it desirable to establish a policy for the compensation related to meeting attendance, and the reimbursement of business and travel expenses incurred by Board Members related thereto. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Adoption of Policy and Establishment of Procedures. The Board of Directors hereby adopts the Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and meeting attendance and Compensation, set forth on Exhibit"A", attached hereto and incorporated herein by reference. PASSED AND ADOPTED at a regular meeting held , 2004. Chair ATTEST: Board Secretary WS&S-TLW:pj:k184463:04/20/04-FINAL EXHIBIT "A" ORANGE COUNTY SANITATION DISTRICT POLICY REGARDING DIRECTORS' BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE AND COMPENSATION Article I. Business and Travel Expense Reimbursement It is the District's policy to reimburse Board Members for authorized business and travel expenses in accordance with the procedures of this Policy. This Reimbursement Plan has been developed and is considered an "accountable plan" by the Internal Revenue Service. The Plan includes a combination of reimbursements based upon receipts and for a "per diem" component approved by the Internal Revenue Service. The District, through the Chair of the Board, will authorize attendance at conferences, seminars, meetings and travel, but such expenses related thereto will only be approved to the extent they are necessary to further the accomplishment of District goals and objectives. This Policy applies to all regular and alternate District Board Members authorized to represent the District in business or travel activities. At all times, District representatives serve the public and must do so within the ethical and business performance standards expected of a public agency. Prudent judgment and full compliance with District policies is required. Failure to use discretion in the incurring of business expenses may result in the loss of discretionary travel privileges. Sufficient funds must be included in the current Fiscal Year's operating or capital improvement budgets for all business and travel expenses to be paid or reimbursed under this Policy. Non-compliance with the Policy or falsification of reports or documentary evidence may result in corrective action, including criminal prosecution. Section 1: Terms and Definitions. A. "Accountable Plan"shall mean the Internal Revenue Service Publication for Travel, Entertainment, Gift and Car Expenses. Expenses must have a business connection. Expenses must be adequately documented and include evidence such as receipts, canceled checks, invoices, or credit card statements to support the expenses, and must be submitted within sixty (60) days after they were paid or incurred. Any excess reimbursement must be returned within sixty (60) days. WS&S-TLW:pj:4184475:0420/04-FINAL 1 r B. `Approval by the Board"shall mean Board of Directors approval at a regularly-scheduled Board Meeting with a quorum present and acting. C. "Alternate Board Member"shall mean a Member of the District's Board of Directors designated by the Directors agency to serve in the absence of the Board Member. When the Board Member is absent, the Alternate Board Member becomes the Board Member, and everything in this Policy applies. The Alternate Board Member and the Board Member cannot both be compensated for the same event without prior approval by the Board Chair. D. "Board Chair"shall mean the Member of the District's Board of Directors who has been elected by the other Members to serve as Chair. E. "Board Member"shall mean a Member of the District's Board of Directors, appointed by a member agency pursuant to California Health and Safety Code Section 4730.65. F. "Committee Member"shall mean any Member of the Board of Directors, appointed to a Standing or Ad Hoc Committee, established by an action of the Board or Board Chair. G. "Days Service Rendered"shall mean attendance as described in Article II, Section 13, below. H. "Director"shall mean a Member of the District's Board of Directors. I. "Incidentals"shall mean any minor, miscellaneous expense incurred during travel, including but not limited to, telephone, facsimile or computer connection service, local ground transportation, baggage handling and storage, and snacks. K. "Travel Expenses"shall mean transportation, lodging, meals, and incidentals expenses associated with attending a seminar, conference, or meeting requiring an overnight stay. L. "Travel Liaison"shall mean the Secretary to the General Manager, or such other employee as designated in writing by the General Manager. Section 2: Responsibilities. A. Directors shall be familiar with and comply with this Policy; ensure all travel and other reimburseable expenses are reasonable; coordinate W585-TLW:pi:41B4475:04/20/04-FINAL 2 multiple Director participation at conferences to avoid unnecessary duplication; and promote economic means of travel. The Board Chair can approve or deny requests for travel or business activities and reimbursements for Board and Committee Members. B. The General Manager shall be familiar with and comply with this Policy; ensure all travel and other reimburseable expenses are reasonable; coordinate multiple Director participation at conferences; and promote economic means of travel. C. The Travel Liaison shall be familiar with and comply with this Policy; promote economic and reasonable means of travel; and inform the General Manager of all unreconciled expenses regarding travel matters. D. The District Controller shall be familiar with and comply with this Policy; ensure all travel and other reimburseable expenses are reasonable; coordinate multiple Director participation at conferences; and promote economic means of travel. Section 3: Travel Liaison. The Travel Liaison shall arrange all travel, lodging, accommodations, and seminar/conference registrations for the Directors. The Travel Liaison shall use the District's designated travel agency for booking all air and ground travel. The General Manager is authorized to grant exceptions on a case-by-case basis. Any travel or registration not booked through the Travel Liaison, or not granted an exception, may be subject to payment by the Director without reimbursement from the District. Section 4: Designated Travel Agencv. The District will designate a single travel agency for the Travel Liaison to use to arrange all travel and lodging accommodations for Directors. Section 5: Seminars. Conferences. and Meetings. A. Attendance at seminars, conferences, and meetings must be approved in advance by the Board Chair, except when specifically pre-authorized by this Policy. B. Directors may from time to time receive requests or may elect to attend meetings or conferences pertaining to the water and wastewater utility industry, and may be asked to, or may desire to, give presentations or otherwise represent the District at such events. Any Director wishing to attend such events and represent the District by providing a presentation or oral commentary shall request and receive advance authorization from the full Board of Directors. If such a request is granted, all expense reimbursements and travel and meeting attendance requirements shall comply with this Policy. In the event there is not sufficient time to submit a request to act as District Representative to W585-TLW:p1:#18"75:04M20/04.FINAL 3 the Board, the Board Chair has the authority to approve such a request in advance; this approval would then be subsequently submitted for ratification at the next regularly scheduled Board meeting. C. The number of Directors attending a seminar, conference, or meeting should be minimized, and there must be a District business reason for attendance. Such reasons would include, but are not limited to: presentation of technical findings; attendance at committee meetings, or technical sessions dealing with issues related to District business; or participation as an Officer of the Association. D. Seminars must be selected based on value to the District. Benefits would include improved efficiency and effectiveness, as well as becoming familiar with new regulatory standards. Free, local seminars must also be authorized in advance in order to be considered for approval of Director compensation. Preference will be given to seminars that are provided within the Southern California region. E. Attendance at seminars, conferences, or meetings in "destination resort" areas outside California or areas outside the continental United States will not be approved except by vote of the District's Board of Directors' Steering Committee. Section 6: Ground Transportation. A. The most economical mode and class of transportation reasonably consistent with travel and scheduling requirements will be used. Each Director shall be reimbursed at the rate per mile established by the United States Internal Revenue Service as allowable for mileage expense deduction for use of a personal vehicle on business of the District. As said allowable rate established by the Internal Revenue Service is periodically changed, said changes in the reimbursement rate shall become effective on the first day of the month following the month in which the change is announced by the Internal Revenue Service. B. In no event shall the amount paid for mileage reimbursement for use of a personally-owned vehicle used for travel in lieu of air travel, exceed the lowest available cost of coach class airfare. C. Personally-owned vehicles used in the conduct of District business must be insured for property and liability damage in an amount not less than the minimum limits required by the California Financial Responsibility Act. D. Reasonable vehicle parking and storage costs will be allowed when rental or personally-owned vehicles are used for District business. WSBS-TLW:pj:4194475:04/20/04 FINAL 4 E. Highway and bridge tolls are allowable expenses when incurred while conducting District business. F. Directors should only use rental cars for ground transportation when necessary or when it is less expensive than other forms of transportation such as trains, buses, taxis, or shuttles. Discretion must be used in selecting rental car size. The rental car should be the smallest size that provides adequate safety and comfort for the period of time it is in use. To accommodate a group of travelers, a larger vehicle may be rented in lieu of renting separate vehicles. G Directors will not be reimbursed for any surplus insurance purchased for rental cars. The District and Director are sufficiently insured through existing District policies. Only Directors are allowed to operate rental cars. H. Use of chauffer-driven limousines is not allowed while conducting District business. Section 7: Air Transportation. A. Air transportation must be at coach class level. First class travel will only be allowed on an exception basis and must be approved in advance by the Board Chair, based upon physical needs or ability to conduct meaningful work while on board. B. Air transportation should be arranged as early as possible to take advantage of reduced fares for early reservations. Consideration should be given to alternative departure times, departure and arrival airports, dates, flight times, and stopovers to minimize airfares; however, the total cost of the alternatives (e.g., ground transportation, lodging) should also be considered in selecting an alternative. Internet booking services can be consulted to help in finding the optimum alternative; however, flights must still be reserved by the Travel Liaison. Section 6: Lodging. When travel is to a conference, the conference- sponsored hotel should be used to minimize cost. Some conferences require early booking to take advantage of reduced rates. If lodging cannot be arranged at the conference-sponsored hotel, other lodging accommodations may also be arranged if the cost is less than or equal to the conference-sponsored hotel, unless an exception for a higher rate is approved in advance by the General Manager. No lodging within sixty (60) miles of the District's Administrative Offices or the Director's residence, whichever is less, will be reimbursed. WSBS-TLW:p4184475:04/20/04-FINAL 5 r Section 9: Meals and Incidentals. Meal expenses are allowed while Directors are traveling. Expenditures for meals will be moderate and reasonable. Expenses for meals not associated with travel but related to an appropriate business purpose meeting, are also allowed. Non-travel business meals will only be reimbursed if taken in conjunction with a District business meeting. Meals for Directors' guests will be reimbursed only if they have a legitimate business relationship with the District. A. Reimbursement When Receiot Provided. Directors will be reimbursed for actual meal expenses, including all taxes and gratuities, up to the amounts indicated below. If meal expenses exceed the allowance amount, the Director will only be reimbursed the allowance amount, with the remainder being paid by the Director. If meal expenses are less than the allowable amount, only the actual expense amount will be reimbursed. All meal expenses must be documented in detail in accordance with this Policy. When receipts are provided, the maximum per meaVexpense reimbursements are as follows: Breakfast $15.00 Lunch $20.00 Dinner $25.00 Snacks $10.00 Multiple meal expenses cannot be combined to pay for a more expensive single meal. The Policy is applied strictly as a per meal expense. In no event will a Director be reimbursed more than $70 per travel day under the Receipt Method. If a receipt is missing, reimbursement will be the maximum per meal amount allowed for that meal, based upon certification that the receipt was lost. Receipts must be a detailed receipt from the restaurant for actual costs. Restaurant bill stubs do not provide sufficient detail and are not acceptable for reimbursement. If detailed receipts are not available, the Director can still be reimbursed at the lower amounts pursuant to Subparagraph B below. Credit card receipts may be accepted, subject to Board Chair approval if itemized, detailed meal receipts are not provided by the restaurant. B. Reimbursement When Receipt Not Provided. When no receipts are submitted with the request for reimbursement, Directors will be reimbursed for meal expenses, including all taxes and gratuities, based upon published Internal Revenue Service Guidelines referred to as "CONUS" rates. These rates vary by travel destination and are located on the District's intranet site under"Forms", or at www.gsa.goy (per diem rates). A copy of the January 2004 rates is attached to this Policy. Directors will be reimbursed the allowance amount, whether actual meal expenses are less than or greater than the allowance amount. No WSBS-TLW:pI:#18 75:04/20/04-FINAL 6 r expense documentation is required for reimbursement in accordance with this Policy. When no receipt is provided, there are six (6) levels of reimbursement based upon the travel destination. For partial days of travel the individual components may be reimbursed as follows: (1) (2) (3) (4) (5) (6) Breakfast $ 6 $ 7 $ 8 $ 9 $ 9 $10 Lunch $ 6 $ 7 $ 8 $ 9 $11 $12 Dinner $16 $18 $20 $22 $24 $26 Incidentals $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 Daily Maximum $31 $35 $39 $43 $47 $51 During travel, these amounts may be aggregated to allow a total per day. As an example, multiple meal expenses may be combined to allow for a more expensive single meal. However, reimbursement shall not exceed the Daily Maximum for the destination per travel day, when no receipts are provided. C. Non-Reimbursable Meals and Incidentals. Directors will not be reimbursed for the following: i. Meals that are included in the cost of a conference or seminar, nor for meals taken elsewhere in lieu of the meal provided. ii. Meals provided by others. Conflict of interest policies and applicable statutes should be considered when providing meals for or receiving meals from persons or entities other than the District representatives. iii. Meals provided to a spouse or guest. iv. Alcoholic beverages consumed by a Director or others. Section 10: Extended Travel and/or Travel with Family Members. When a Director elects to extend his/her stay at travel destinations, or when traveling with family members, all expenses related to such extended or family travel, including, but not limited to airfare, extra meals, extended car rental, lodging, or incidentals shall be paid by the Director without reimbursement. When travel time restrictions or transportation discounts make it desirable for a Director to arrive at a conference, seminar, or meeting a day early, or to stay an additional day, those travel days will be considered the same as a day's service rendered; provided, approval is obtained from the Board Chair in advance. WS&S-TLW:pI:#184475:04/20/04-FINAL 7 r Section 11: Requests for Reimbursement. A. Requests for reimbursement shall be submitted to the District Controller not later than sixty (60) days after payment by the individual and shall be submitted on forms provided by the District. A delinquent expense report will not be reimbursed unless justified in writing and approved by the Board Chair . All requests for reimbursement must be accompanied by receipts or documentation evidencing each expense. Improper expenditures, or those not adequately documented, will not be reimbursed. Non-essential expenses, including but not limited to in-room movies, service bar, etc. will not be reimbursed. B. All expense reports shall include detailed receipts (except for meals to be paid pursuant to Section 9.B. above) and state the date, type of expense, District business purpose, those in attendance and their affiliations, and amounts expended. Article ll. Meeting Attendance and Compensation Section 12: Directors shall be paid a stipend as compensation, at the rate determined by the Board of Directors, and adopted by Ordinance No. OCSD-23 as amended, for attendance at Meetings, as defined below, and for each Day's Service Rendered as a Member of the Board. "Maximum Meetings Allowed Per Month" shall mean for the Board Chair, six (6) meetings, or six (6) days' service rendered per month; for all other Directors, four (4) meetings or four (4) days' service rendered per month. "Meetings"shall mean all regularly convened Board of Directors Meetings, Standing Committee Meetings, Ad Hoc Committee Meetings, and other Meetings called by the Board Chair. Also included are specific industry conferences and business meetings of a recurring nature, such as the California Association of Sanitation Agencies and the Association of Metropolitan Sewerage Agencies, designated by the Board Chair. Meetings not sanctioned by the Board Chair are not considered business of the District. Section 13: Directors shall receive a stipend as compensation, without further action or authorization of the Chair or the Board of Directors for attendance at the following: Board of Directors meetings; Standing Committee and Ad Hoc Committee meetings, of which the Director is a duly appointed member; meetings, conferences and committee meetings of CASA and AMSA; meetings of other governmental agencies, at which the District has an official delegate. WSBS-nW:pj:X184475:04/20/04-FINAL 8 Section 14: Each Day's Service Rendered as a Member of the District's Board of Directors, shall be deemed to include, but not be limited to: A. Attendance at any Meeting of a Committee of which the Director is not a member, when expressly invited to attend said Committee Meeting by the Chair of the Board of Directors. B. Attendance at conferences with State and/or Federal Legislators regarding District business, when approved by action of the Board of Directors. C. Attendance at a meeting, hearing, or conference relating to the business of the District, when approved by action of the Board of Directors, or when designated by the General Manager, with the concurrence of the Chair, in advance, and when deemed to be in the best interests of the District, including but not limited to the following: i. Meetings of nonprofit organizations or service club meetings where a Board Member is making a presentation on behalf of the District. if. Ceremonial events. III. Meetings with other elected officials or their employees, which do not include District Staff. iv. Meetings of the governing body of another agency, of which the District has an official delegate, where a matter directly affecting the interests of the District is agendized for discussion and the Board Member is not compensated by the other agency. V. Meetings with District Staff. vi. Industry related conferences other than California Association of Sanitation Agencies' or Association of Metropolitan Sewerage Agencies' work conferences. vii. Telephone conferences when physical attendance is impractical and not mandatory. Section 15: Non Compensable Attendance. Board Members shall not be compensated for the following meetings where there is no District-related business to be conducted: WSBS-TLW:pI#18"T5:04/20104-FINAL 9 A. Nonprofit organization meetings. B. Nonprofit organization events. C. District-sponsored employee events, including but not limited to the annual holiday luncheon, employee picnic, or retirement events. D. Social or ceremonial events not pre-authorized by the Board. E. Service club meetings other than those included in Section 14(C)(1) above. F. Parades, festivals, holiday events, or retirement dinners. G. Meetings with existing or potential contractors, vendors, or consultants. H. Meetings of partisan political organizations. Section 17: No Director shall receive compensation for attendance at any meeting, such as Committee Meetings, which are scheduled immediately preceding, immediately succeeding, or concurrent with a regularly-scheduled District Board Meeting. Section 18: No Alternate Director shall receive compensation for attendance at any meeting unless serving in the absence of the regular, Active Director. The Policy was duly adopted, by action of the Board of Directors, on , 2004 and shall be effective upon its adoption. WSBS-TLW:p1:8184476:04120/04-FINAL 10 CALIFORNIA Per Diem Rates Page 1 of 4 U.S.General services OGP Home GSA Home Quick Reference Per Diem rates for CALIFORNIA state Tax standard CONUS Effective October 1, 2003 Exem tlon ust I Property Ust Per diem locality (Cities not listed or located in fisted counties have a standard Ewertx CONUS note of Listine 05 Lodging a$,I MWE for F 2(1 for all outer years the rate is 355 Lodgiq a S30 WE) M U ate Maximum & County + IE = Maximum and/or other lodging rate defined (excludes per diem Properties location taxes) rate(4) at Per Key city W (2, 3) (a) (b) (c) diem Barstow/OntatioNictorville San 84 43 127 Bernardino li County Lake Clearlake(May 05 -Sep 30)(Oct 01 -May 04) 69 35 104 Contra Costa County Contra 108 47 155 Pro-. Costa List Death Valley Inyo 60 47 107 Proo• List Fresno 73 35 ]OS Pro Fresno 0 Lis[ Kern County Kem 68 43 ill LProo. Lemoore IGngs 67 � 31 � 98 l� ist List Los Angeles fAn eles;nge and tura http://policyworks.gov/orgtmain/mt/homepage/mtt/perdiem/perdiem.cfm?st=CALIFORNI... 4/22/2004 CALIFORNIA Per Diem Rates Page 2 of 4 i Counties; Edwards AF13; Naval Weapons Center and Ordinance Pd4 mR Test Lig Station, China Lake (see Santa Monica) Mammoth Lakes Mono 70 47 117 Pr op• L�r l Maria County Maria 108 47 155 PROPI List Merced 62 35 97 Merced �� Pr—op— List Modesto Stanislaus Pro i❑ � Monterey Prop. Monterey List (May 01 - Oct 31) 94 n47 141 gyp.,(Nov 01 - Apr 30) 75 122 List Napa Prop. Napa List (Apr 01 -Nov 15) 125 47 172 Prop. (Nov 16 -Mar 31) 110 47 157 Li5t Madera Prop Oakhurst List (May 01 -Sep 30) 79 43 (Oct 01 -Apr 30) 55 43 98 ist Oakland Alameda ]OS 43 148 Prop List Riverside Prop. Palm Springs List (Jan 01 -May 31) l29 47 ]76 Prop. (Jun 01 -Dec 31) 84 47 131 List Point Arena/Gualala Mendocino 109 43 152 Prop List Redding Shasta 78 35 113 L sP http://policyworks.gov/orgtmain/mt/homepage/mtt/perdiem/perdiem.cfm?st=CALIFORNI... 4/22/2004 CALIFORNIA Per Diem Rates Page 3 of 4 ( Redwood City/San San Mateo 102 I 147 I I 149 Rnn. Mateo lul lul List Sacramento Sacramento 93 47 140 List San Diego San Diego 110 51 161 Pro List San Francisco San 139 51 190 Pro . Francisco �❑�� L1SD San Luis Obispo San s 79 43 122 Proo. Obis List Santa Barbara Santa 114 43 157 Prop. Barbara List List Santa Cruz 108 47 155 Pro . $ants CN2 Santa Monica City limits 1_5 43 168 of Santa ' ���❑ Ust Monica Santa Rosa 89 11UF 136 Pro_ Sonoma "is[ Solano County Solano; 79 47 126 Travis AFB Proo• List EI Domdo Proo. South Lake Tahoe List (Jun 01 -Aug 31) 97 n47 144 P�(Sep 01 -May 31) 84 131 List Stockton S 73 31 104 Pron. Joaquin List Sunnyvale/Palo Santa Clam 106 51 157 Pro —R Alto/San Jose List Tahoe City placer 145 EU 192 Anp. Nevada Truckee (Jun 15 -Sep 30) 81 47All (Oct 01 -Jun 14) 63 47 Visalia Tulare 69 43 112 Prop. List http://poficyworks.gov/org/main/mt/homepage/mtt/perdiem/perdiem.cfm?st=CALJFORNI... 4/22/2004 CALIFORNIA Per Diem Rates Page 4 of 4 i West Sacramento uYolo 104 Po tuuuuLis Mariposa PW- Yosemite National Park List (May 01 - Sep 30) E1814 47 161 ProR(Oct 01 - Apr 30) 47 129 List Mme b liN(0'J2 I I ocP-010 EMW Polk http://policyworks.gov/org/main/mt/homepage/mtt/perdiem/perdiem.cfm?st=CALIFORNI... 4/22/2004 DISTRICT OF COLUMBIA Per Diem Rates Page 1 of I U.S.General Services OGP Horne GSA Home Quick Reference Per Diem rates For DISTRICT OF COLUMBIA Standard coeus Effective October 1, 2003 Property use Per diem locality (Cities not listed or located in listed counties Eiu have a standard!CONUS rate of S55 Lodging 6$31 MWE for Ff 2 ;for all otheryears the rate is$55 Lodginga$30 Maximum M81EI + = Maximum County and/or lodging M&IE other defined (excludes rate per diem Properties location taxes) rate (4) at Per Key city (1) (2, (a) I (b) (c) diem DISTRICT OF Washington, 150 51 201 COLUMBIA DC (also the cities of Alexandria, Falls Church, and Fairfax, and the counties of Arlington, Loudoun, and Prop.List Fairfax,in Virginia; and the counties of Montgomery and Prince George's in Maryland) (See also Maryland and j L-IULHL-L Virginia) Accessibility f0925I20011 OGP-CIO Privam Palkv http://policyworks.gov/org/main/mt/homepage/mtt/perdienVperdiem.cfm?st=DC&yr-2004 4/22/2004 x ' ATTACHMENT t RESOLUTION NO. 00SD ESTABLISHING RULES OF PROCEDURE FOR THE CONDUCT OF BUSINESS OF THE DISTRICT A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT FIXING AND ESTABLISHING RULES OF PROCEDURE FOR THE CONDUCT OF BUSINESS OF THE DISTRICT AND REPEALING RESOLUTION NO. OCSD 01-23 WHEREAS it is necessary to establish rules of procedure to facilitate the orderly handling of business to come before the Orange County Sanitation District Board of Directors and Standing, Steering, Special and Ad Hoc Committees. NOW THEREFORE, the Board of Directors of the Orange County Sanitation District ("District'), DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Rules of Procedure. That the following rules of procedure be adopted for the conduct of business of the District: A. Regular Meetings. There shall be a regular monthly meeting of the Board of Directors of the District on the fourth Wednesday of every month at 7:00 p.m., in the Administrative Offices of the District, located at 10844 Ellis Avenue, Fountain Valley, California; provided, however, if the fourth Wednesday of the month falls upon a legal holiday, said monthly meeting shall be held on the next day thereafter, at the same time and place, unless the Board adjourns to a different date and time certain. The Board of Directors may adjourn any regular, special or adjourned special meeting to a time and place certain, as specified in the order of adjournment. B. Special Meetings. A special meeting of the Board of Directors may be called in either one of the following ways: (1) By the Chairperson of the Board of Directors; or (2) By the written request of a majority of the Steering Committee delivered to the Board Secretary. W 585-T L W:p1:8164616:04716/04 1 Y The call or notice for special meeting shall be in writing and delivered personally or by mail at least twenty-four (24) hours before the time of such meeting, as specified in the notice. Any notice deposited in the regular mail addressed to a Director at the address he or she has on file with the Board Secretary postage prepaid, sixty (60) hours in advance of any such meeting as specified in the notice, shall be presumed to have been delivered. The call or notice shall specify the time and place of the special meeting, a description of the business to be transacted, and copies of all pertinent written materials. Such written notice may be dispensed with as to any Director or Alternate Director who, at or prior to the time the meeting convenes, files with the Board Secretary a written waiver of notice. Such waiver may be given by telegram. Such written notice may also be dispensed with as to any member who is actually present at the meeting at the time it convenes. The Board Secretary shall diligently attempt to notify each Director personally of the time, place and purpose of said meeting, not less than twenty-four(24) hours before the time of said meeting. The call or notice shall be posted in the administrative offices' public lobby at least twenty-four(24) hours prior to the special meeting. C. Meetings Adioumed by Board Secretary. If at any regular, adjourned regular, special, or adjourned special meeting, there is not a quorum of Directors present, the Board Secretary may declare the meeting adjourned to a stated time and place and shall cause written notice of the adjournment to be given in the same manner as for a special meeting, unless such notice is waived as provided for in special meetings. Within twenty-four (24) hours after the time of the adjournment, a copy of the order or notice of adjournment shall be conspicuously posted on or near the door of the place where the meeting was held. D. Notices to News Media. When any local newspaper of general circulation, radio or television station requests, in writing, notices of meetings of the Board of Directors, the Board Secretary shall thereafter, until receipt of a notice terminating said request, deliver notices of regular, regular adjourned, and special adjourned meetings to such newspapers, radio or television stations. Delivery shall be made in the same manner as delivery is made to the Directors. E. Conduct of Meetings. (1) Procedural Rules. The procedural rules for debate and action shall be as set forth in Table 1, attached hereto and adopted herein by reference. Robert's Rules of Order shall not be applicable or govern the procedures for the conduct of District business. WSSS-nw:pJ:084616:0411 i 2 (2) Legal Officer. In any case of ambiguity or uncertainty in the interpretation or application of these Rules to any procedure, the presiding officer may direct such question for a ruling to the Board's General Counsel, who shall be the parliamentarian of the Board. (3) Obtaining the Floor and Making Motions. Any member of the Board wishing to speak, or any member of the public wishing to address the Board, must first be recognized by the Chairperson. The Chairperson must recognize any member of the Board who seeks the floor when appropriately entitled to address the Board. Any member of the Board, including the Chairperson, may bring a matter of business properly before the Board by making a motion. Any member, including the Chairperson, except the member making the motion, may second the motion. Once a motion is seconded, it may be opened for discussion and debate, in accordance with the procedures in Subsection (4) below. (4) Rules for Discussion. Debate. and Deliberation by the Board. The procedures for consideration and action on all matters to come before the Board shall be in compliance with the terms of this Section, as follows: (a) Each item on the Agenda will be introduced in a form of a report by either Staff or Counsel. (b) Upon completion of the report, the Chairperson will allow for direct questions regarding the item, by Directors, each in turn, and in the order as selected by the Chairperson. (c) Upon completion of the question period, the Chairperson will entertain a motion and second for consideration by the Board. (d) Discussion among the Directors will follow. Each Director will be recognized to address the Board in the order selected by the Chairperson, with a five (5) minute time limit for each Member wishing to speak on the Agenda item, unless the time limit is waived by the Chairperson. There will be no interruptions of the Director who has been recognized. Attempted interruptions will be declared out-of-order, and the Board Member attempting to interrupt will be asked to remain silent until recognized. (a) As an additional courtesy to everyone, repetition of comments will be discouraged in the interest of time, and at the discretion of the Chairperson, can be declared out-of-order. WS&S-TLW:p1:#184616:04/16/04 3 (f) After each Member who wishes to speak has been recognized and completed his/her remarks, a single three (3) minute period of rebuttal will be allowed any Director, unless the time limit is waived by the Chairperson. (g) If it appears to the Chairperson that any Director is pursuing a line of questioning or commentary due to lack of preparation or prior review with the District's Staff, the Director's time will be declared to have been used up, and no further inquiry will be allowed. (h) Upon adoption of a motion on an Agenda item, there will be no further discussion of that item. (5) Decorum in Debate. All Members shall address their remarks to the Chairperson and confine them to the business then pending and subject to discussion before the Board, avoiding personalities and reflections upon anyone's motives. (6) Closing or Limiting Debate. At all times the Board shall endeavor to allow free and open debate among Members of the Board. However, in the discretion of the Chairperson, it may become necessary to close or limit debate, so that action can be taken by the Board. An order by the Chairperson closing or limiting the debate can only be set aside by a majority vote of the Board. F. Quorum. A majority of the Directors shall constitute a quorum of the Board. G. Chairperson and Vice Chairperson of the Board. A Chairperson and Vice Chairperson of the Board shall be elected by a majority vote of Directors at the regular meeting in June of each year, and will assume office July 1st. The nominations for Chairperson shall be made at the regular Board meeting in May of each year, and the nominees may prepare a statement setting forth their qualifications for the office of Chairperson. The statements shall be mailed to members of the Board of Directors with the Agenda and other meeting material for the June regular meeting. The nominations and election for Vice Chairperson shall be made at the regular Board meeting in June of each year and shall be made immediately following the election of the Chairperson. The elected Vice Chairperson will assume office July 1 St. The Chairperson and Vice Chairperson shall serve at the pleasure of a majority of the Directors. In the event the office of Chairperson becomes vacant due to resignation or retirement of the incumbent prior to the expiration of the regular term, the Vice Chairperson shall automatically succeed to the office of the Chairperson and shall continue to serve through the remainder of the regular term unless sooner removed by wsas-TLw:pl:Kleael6:oalr✓04 4 action of a majority of the Directors. In the event the office of Vice Chairperson becomes vacant prior to the expiration of the regular term, nominations and the election of a Director to serve in that capacity shall be conducted at the next regular Board meeting. The person so elected shall serve the balance of the regularly-scheduled term unless sooner removed as a result of action by a majority of the Directors. Subject to the provisions about serving at the pleasure of a majority of the Directors, the Chairperson shall not serve more than two consecutive one-year terms for which he/she has been elected to the office of Chairperson. H. Presiding Officer. The Chairperson of the Board shall preside during meetings of the Directors. In the absence of the Chairperson, the Vice Chairperson shall preside. I. Board Secretary and Minutes. The Board of Directors shall have a person designated to serve as Board Secretary. The Board Secretary will be appointed to the position by the General Manager and shall report to the General Manager or a Department Head as designated by the General Manager. The Board Secretary will be a regular full time employee, subject to all the rules and policies applicable to all regular full time employees. The Board Secretary shall attend all meetings of the Board of Directors, unless excused by the Chairperson, and shall prepare an accurate record of each meeting for submission to the Directors and subsequent approval at the following meeting; provided, however, that when an adjourned, special or special adjourned meeting of the Board of Directors immediately precedes a regular meeting, Minutes of said meeting shall be submitted for approval at the next meeting of the Board following said regular meeting. In the preparation of Official Minutes of a meeting of the Board of Directors, the Board Secretary will not record the name of the Director who moves or who seconds the adoption of a motion or Resolution, except the vote of any individual Director shall be recorded upon that Director's request. The Minutes will reflect the votes by name of Director when required by provisions of state law. In the absence of the Board Secretary, a Secretary Pro Tern shall be appointed to exercise the duties of the Board Secretary. J. Regular Business to Come Before the Board of Directors. Insofar as practicable, all items of business to be taken up at a regular meeting of the Board shall be submitted to the Board Secretary, who shall include on the Agenda all such items submitted by Directors, the General Manager and General Counsel, and all formal communications. The Board Secretary shall mail to each Director a notice of such regular meetings, together with a proposed Agenda, not later than the Friday immediately WSBS-TLW:pJ:k184818:04h6104 5 preceding such regular meetings. Said Agenda, insofar as possible, shall include copies of Resolutions, except as hereafter provided, and a description of all matters to be considered, together with any pertinent written materials. Agendas shall be posted in a location freely accessible to the public not less than seventy-two (72) hours in advance of the meeting. Resolutions designated as "standard" and adopted by the Board of Directors from time to time, and approved as to form and content, need not be included with said Agenda; provided, however, that the information completing said standard Resolutions shall be set forth on the Agenda listing, and copies of said standard Resolutions shall be on file with the Board Secretary at the meeting time and place. Items of business not known at the time the regular Agenda is mailed as herein provided, may be considered as supplemental Agenda items; provided that all requirements of the Ralph M. Brown Act (California Government Code Sections 54950 et seg.) are satisfied. No business, except with consent of two-thirds of the Directors present (a majority of Directors present for emergency actions), and only if permitted by the Ralph M. Brown Act, not appearing on the regular or supplemental Agendas may be brought before the Board of Directors. The meeting Agenda shall provide for an opportunity for members of the public to address the Board on items on the Agenda and non-Agenda items of public interest. As determined by the Chairperson, speakers may be deferred until the specific Agenda item is taken for discussion, and remarks may be limited to three (3) minutes. Speakers on non-Agenda items may address only items that are within the subject matter jurisdiction of the Board of Directors. Time allotted for such presentations is limited to three (3) minutes or less, In . Total time allotted for all public input on each non-Agenda item is limited to thirty (30) minutes to one (1) hour, 'A the disaFetien of the Gha1FpeF8QR, taking into consideration the number of persons filing a request to address the Board. However, time allotments may be waived by a ma/oritV vote of the Board. K. Handling of Business and Voting. During the course of a Board meeting, routine matters listed on the Agenda for consideration will be referred to by Agenda Item Number only. Voting on all Resolutions shall be by roll call, except if waived by unanimous voice vote, in which event, the Chairperson may order a unanimous ballot cast in favor of the motion or Resolution under discussion. The name of each Director shall be called only once. wS&5-TLw:pl:N184616:0411604 6 r On matters of considerable interest or on which there appears to be a controversy, the motion or Resolution shall be read by title or repeated by the Chairperson. The Chairperson shall thereafter call for discussion of the motion or Resolution, at which time any member may discuss the pending matter. Any person other than a Director present at the meeting may speak on the motion if recognized by the Chairperson. Sole discretion as to the extent of discussion outside of the membership of the Board shall rest with the Chairperson. At the close of discussion, the Chairperson may, at the Chairperson's discretion, repeat the motion or Resolution pending, and thereafter, call for a vote. The Board Secretary shall determine and state whether or not a motion or Resolution is adopted by roll call vote. On all other matters, the Chairperson shall determine the outcome of the voting. L. Committees. (1) Standing Committees. (a) Steering Committee: There shall be a permanent Committee designated as the Steering Committee, comprised of the Chairperson of the Board, the Vice Chairperson of the Board, the immediate past Chairperson of the Board, the Chairperson of each of the Standing Committees and the Director from the County Board of Supervisors to assist in coordinating the flow of activities to the Committees and Board. The Vice Chairperson of each of the three Standing Committees shall serve as the designated Alternate, In the absence or Inability to serve by any Chairperson. The Committee shall also conduct an annual performance evaluation of the General Manager and submit recommendations on his/her compensation to the Board of Directors. The Committee shall also review the General Manager's evaluation and compensation of the executive management employees, based on established criteria, and executive management's goals and objectives for the following year. The Committee shall also be authorized to assign new subjects of significant importance to the District, to the respective Standing Committee for study, evaluation and recommendation. The Steering Committee shall meet on the fourth Wednesday of each month at 5:00 p.m. preceding the Board's meeting, or at the call of the Chairperson of the Board of Directors. (b) Finance. Administrative and Human Resources Committee. There shall be a permanent Finance, Administrative and Human WS&S-TLW:pl:#184616:04/16f04 7 Resources Committee to advise the Staff and make recommendations on matters related to the financial, budgeting, administrative and personnel policies and programs of the District. The Committee shall review with the Staff the procedures for development, preparation and format of the annual budget and recommend appropriate change, and counsel the Staff during the budget process to assure the proper interpretation and implementation of the Board's policies and that the desired procedures have been followed. The responsibility for consideration and adoption of the District budget rests with the Board of Directors. The Committee is responsible to periodically interview and recommend the selection of outside auditors. The Committee shall review the result of the annual audit of the Districts accounts with representatives of the outside audit firm, including any comments received recommending improvements. The Committee shall review managements response to these comments and make appropriate recommendations for implementation. Periodically, the Committee shall recommend employment of an outside firm to audit internal control procedures to safeguard the assets of the District. The Committee shall interview and make recommendations on the employment of investment-banking firms, bond counsel, and if necessary or desired, financial advisors to be used in connection with the District's financing programs. The Committee shall periodically coordinate recommendations on personnel audits of the Districts operations or segments of the operations on an as-needed basis. The Committee shall make recommendations on personnel policies and procedures, labor negotiations, insurers and coverage, procurement procedures, and such other related activities as may be needed or appropriate. The Chairperson and Vice Chairperson of the Finance, Administrative and Human Resources Committee shall be appointed by the Chairperson of the Board of Directors. The Finance, Administrative and Human Resources Committee shall meet on the second Wednesday of each month at 5:00 p.m., or at the call of its Chairperson. wsas-nW:pi:sleas1e:ouidpe 8 r (c) Operations. Maintenance and Technical Services Committee. There shall be a permanent Committee designated the Operations, Maintenance and Technical Services Committee. With the goal of compliance with all public health and environmental laws and regulations, the Operations, Maintenance and Technical Services Committee shall review and submit appropriate recommendations on the matters pertaining to the operation of the District Treatment Works, including such matters as current and projected service/flow needs, level and quality of treatment, conservation, recycling and reuse activities, and air quality issues. The Committee shall also review issues pertaining to the District's NPDES Ocean Outfall Discharge Permit, including annual review of the contractor(s) performing the ocean monitoring and research programs required as a condition of said permit, and related issues regarding protection of the marine waters off metropolitan Orange County's coastline from impacts resulting from the District's operations and discharge of treated wastewater. The Committee shall also review matters pertaining to contractual arrangements by the District to provide sewerage services to areas outside the District's boundaries or approved spheres of influence. The Committee shall review plans for the future needs of the District, explore alternatives and make recommendations on solutions to the Planning, Design and Construction Committee. In carrying out its responsibilities, the Committee shall regularly study, visit and observe the various operational functions of the District Treatment Works. The Chairperson and Vice Chairperson of the Operations, Maintenance and Technical Services Committee shall be appointed by the Chairperson of the Board of Directors. The Operations, Maintenance and Technical Services Committee shall meet on the first Wednesday of each month at 5:00 p.m., or at the call of its Chairperson. (d) Planning. Design and Construction Committee. There shall be a permanent Committee designated the Planning, Design and Construction Committee. The Planning, Design and Construction Committee shall review and submit appropriate recommendations on matters pertaining to capital projects which address operational needs identified by the Operations, Maintenance and Technical Services wsas-TLw:q:#18"1e:oaieroa 9 Committee, including the selection of professional consulting services to assist in ' studying, planning and designing needed District Treatment Works and support facilities, including computerized systems, in accordance with the Board's established policies and procedures for procuring such services; the Committee shall further review construction projects for said facilities in accordance with applicable public works laws and Board policies. Said oversight shall include the contracts for professional services and public works construction projects and addenda or change orders thereto. In carrying out its responsibilities, the Committee shall receive advance notice and regular status reports on the projects from Staff, and monitor, visit and observe the District Treatment Works' operational functions and major capital construction projects. The Chairperson and Vice Chairperson of the Planning, Design and Construction Committee shall be appointed by the Chairperson of the Board of Directors. The Planning, Design and Construction Committee shall meet on the first Thursday of each month at 5:00 p.m., or at the call of its Chairperson. (e) FAHR. OMTS. and PDC Committee Assignments. The Chairperson of the Board shall make all Committee assignments, and may appoint the immediate Past Chairperson to one of the Committees. (2) Special and Ad Hoc Committees. In addition to the Standing Committees, the Chairperson of the Board of Directors, or the Chairperson of a Standing Committee, or a majority of the Directors, may appoint, from time to time, Special or Ad Hoc Committees to study and report on specific matters. Such Committees shall be temporary in nature, and their assignments shall pertain to a current, specific issue. Upon completion of the assigned task, the Ad Hoc or Special Committee will be dissolved. The Chairperson and Vice Chairperson of Special and Ad Hoc Committees shall be appointed by the Chairperson of the appointing authority. Special or Ad Hoc Committees shall meet at the call of its Chairperson. M. Motion to Refer to a Standing Committee. Any Director at a Board meeting may move to have a policy or any other activity affecting the District, or any one of the member Agencies, referred to a Standing Committee for study and report. This motion shall be a privileged motion, and when duly seconded, discussion thereof shall be limited to Directors only. Said motion shall receive an affirmative vote of a majority of the Directors for adoption. W S&S-TLW:pj:N1 84616:O 16104 10 r Section 2: Procedure for Consideration of Demands for Corrective Action. A. Requirement of Written Demand. Prior to any person commencing a judicial action for injunction or mandamus to declare any action taken by the Board void because of failure to observe Brown Act requirements, such person must first serve upon the Board Secretary a written demand describing the alleged violation and demanding corrective action. Such demand must be served upon the Board Secretary within thirty (30) days of the complained of action. Failure to serve any such demand within this thirty (30) day period shall result in the loss of any right to challenge any action to have been taken in violation of Sections 54953, 54954.2, or 54956 of the California Government Code. B. Consideration of Corrective Action. Upon receipt of such a demand, consideration of the demand shall immediately be placed on the Agenda for the next meeting of the Board of Directors. If the demand is received less than seventy- two (72) hours prior to the time set for the next meeting, the Board may determine that the notice constitutes the initiation of litigation, and that the need to take action on the threatened litigation arose subsequent to the posting of the Agenda, and may consider it at that meeting pursuant to Section 1(J) above. A description of any item so placed on the Agenda shall include both consideration of the demand, and the possibility of corrective action by the Board. In considering such demands, the Board shall first determine, by motion, whether corrective action should be taken. If no motion to take corrective action is carried, the Board Secretary shall inform the demanding party in writing of the Board's decision not to cure or correct the challenged action. C. Implementing Corrective Action. If a motion to take corrective action passes, the Chairperson may entertain a motion implementing corrective action. Any motion implementing corrective action shall address the concerns raised in the consideration of corrective action. The motion implementing corrective action may include a motion to rescind prior action taken, as appropriate. Passage of a motion to rescind invalidates prior action only as of the time of the passage of the motion, and not from the date of the initial action. A motion implementing corrective action resulting from a written demand is out-of-order if the action complained of (a) was in connection with the sale or issuance of notes, bonds, or other evidences of indebtedness, or any contract, agreement, or incident thereto; or (b) gave rise to a contractual obligation upon which a party has, in good faith, detrimentally relied. In any event, the Board shall notify the parry making the demand in writing of its decision to take corrective action, and shall describe any corrective action taken. This notice shall be given to the demanding parry as soon as possible after the meeting, but in no event more than thirty (30) days after receipt of the demand. wssS-nw:pl:k1 B46 i s:0411604 11 Section 3: Resolution No. OCSD 01-23 is hereby repealed. Section 4: This Resolution shall become effective upon adoption. PASSED AND ADOPTED at a regular meeting held Chair ATTEST: Board Secretary wsas-ttw:pl:#lU616:oa1sroa 12 TABLE 1 BOARD PROCEDURES AND ORGANIZATION SUMMARY OF MOTIONS A. PRIVILEGED MOTIONS Kind of Second Motion Required Debatable Amendable Vote Required Purpose Adjourn Yes No No Majority To end the meeting To Take a Yes No No Majority To interrupt a Recess meeting for a short time or to provide an intermission Raise a No No No None To obtain action Question of immediately in an Privilege I I I I I emergency B. MAIN MOTION AND RELATED SUBSIDIARY MOTIONS Kind of Second Vote Required Motion Required Debatable Amendable Purpose Main Motion Yes Yes Yes Majority To introduce new business Amend Main Yes Yes Yes Majority To modify or alter Motion a motion Substitute Yes Yes Yes Majority To replace the main Motion motion entirely Previous Yes No No Majority To close debate Question on the main or amended motion immediately Continue to a Yes Yes Yes Majority To defer action Certain Time To Table Yes No No Majority To discontinue consideration until brought back by vote of the Board Take a Motion Yes No No Majority To bring before the from the Table group a motion previously tabled WSSS-TLW:pI#184616:04/16/04 13 Limit or Yes No Yes Majority To limit or extend Extend Limits limits of debate of Debate Refer to a Yes Yes Yes Majority To place business Committee in hands of a Committee Withdraw a No No No None To withdraw a Motion motion before it is voted on Reconsider Yes Yes No Majority. To secure a new Must be by a vote on a motion Director who previously voted voted for the upon prevailing side on the original motion C. INCIDENTAL RULES NON-RANKING Kind of Second Vote Required Motion Required Debatable Amendable Purpose Request to Yes No No Two-Thirds To facilitate Suspend the business Rules ordinarily contrary to the rules of the organization Override Yes No No Majority To have Order of the Board Chair majority rule on the order Point of Order No No No None To enforce the rules of the organization WS&S-nW:pgxl9asls:W16AW 14 SB 1272 Senate Bill -Bill An alysis ss Pag i y CI of 13 't ATTACHMENT 6 SENATE LOCAL GOVERNMENT COMMITTEE Senator Tom Torlakson, Chair BILL NO: SB 1272 HEARING: 4/21/04 AUTHOR: Ortiz FISCAL: Yes VERSION: 4/12/04 CONSULTANT: Detwiler SPECIAL DISTRICTS' GOVERNANCE Background Reacting to a series of editorials and news articles in the Sacramento Bee, legislators began looking into the governance of California's 3,300 special districts. In November 2003, at the request of Senator Ortiz, the Senate Local Government Committee held an interim hearing called, -Integrity and Accountability: Exploring Special Districts' Governance. - There was general, although not universal, support among the four legislators and the speakers for statutory reforms. Proposed Law 1. Audits Since the mid-1950s, state law has required county auditors to annually audit special districts' books. A county auditor must either audit a special district or contract with a certified public accountant to perform the work. The audit must follow the State Controller's requirements and conform to generally accepted auditing standards. The district pays for the audit. A district can shift from an annual audit to biennial audits with the unanimous approval of the district's governing board. A district can also shift to an audit once every five years if the size of the district's budget is below a threshold set by the county board of supervisors. Senate Bill 1272 requires special districts' audits to comply with governing auditing standards for financial and compliance audits. Auditors must test transactions with a high risk for abuse. Audit reports must state whether or not the district complies with the compliance requirements in the State Controller's audit guide. To be eligible to conduct financial or compliance audits, an auditor must complete regular quality control reviews conducted by the State Controller. SB 1272 -- 4/12/04 -- Page 2 file://C:\Documents%20and%2OSettin¢s\tappan\Local%2OSe[tines\Temoorarv%2OIntemet... 4/20/2004 SB 1272 Senate Bill -Bill Analysis Page 2 of 13 The State Controller must annually review and monitor special districts' audit reports to determine if they conform to the reporting requirements. The State Controller must notify each district and its auditor of these determinations. SB 1272 allows the State Controller to perform quality control reviews of a district's audit working papers, based on published guidelines and standards. The bill requires the State Controller to conduct a quality control review of a district's auditor if the Controller believes that "revenues were not appropriately utilized" or if the Controller believes that the report is false, incomplete, or incorrect. If the State Controller's review determines that the audit could be the result of unprofessional conduct, the bill requires the Controller to refer the case to the California Board of Accountancy. The State Controller may suspend the auditor from performing districts' audits while the Board investigates. If the Board finds that an auditor conducted an audit in an unprofessional manner, the bill prohibits that auditor from performing special districts' audits for three years. A district's legislative body may similarly refer an auditor to the California Board of Accountancy. The bill allows the State Controller to conduct additional audits, building on the work of the districts' regular auditors. SB 1272 appropriates $600,000 a year from the State General Fund to the State Controller to pay for the bill's special district oversight program. The State Controller may audit a special district that does not comply with the statutory audit standards at that district's expense. SB 1272 requires special districts' governing boards to require their auditors to meet with them in an open session to discuss their findings. Starting in the 2005 calendar year, the bill prohibits a public accounting firm from auditing a special district if the lead audit partner, or the primary coordinating audit partner, or the responsible reviewing audit partner has audited that district for six previous fiscal years. When SB 1272 -- 4/12/04 -- Page 3 a county auditor-controller audits a special district, the lead auditor or coordinating principals must comply with this requirement. SB 1272 allows the State Controller to file://C:\Documents%20and%20Setfings\tappan\Local%20Settings\Temporary%20Intemet... 4/20/2004 SB 1272 Senate Bill -Bill Analysis Page 3 of 13 waive this requirement if "no otherwise eligible auditor is available. - II. Ethics State law prohibits unethical conduct by public officials, including special districts' officers and employees : Public officials cannot have financial interests in contracts made in their official capacities. Those contracts are void. Violations are crimes and can result in permanent disqualification from public office. Those prohibitions don't apply to public officials who have only specified -remote interests' in contracts. Local officials cannot engage in paid activities that conflict with their public duties. Local agencies can adopt their own rules and disciplinary procedures. Local officials cannot solicit political contributions from other officials or their employees. Public officials with prohibited financial interests must disclose the conflict, recuse themselves, and leave the discussion until matters conclude. The Political Reform Act of 1974 also governs local officials' behavior, including disclosure of their economic interests and campaign regulations. Senate Bill 1272 requires special districts' governing boards to provide their members and senior management staff with annual opportunities to participate in orientation courses regarding official conduct and relevant ethical issues and laws relating to lobbying. The courses must be conducted in consultation with or pursuant to standards set by the Fair Political Practices Commission. The orientation course must cover the Political Reform Act of 1974, plus five other specified statutes. The bill requires special districts' board members to attend one of these courses at least once every two years. They can comply by participating in online training SB 1272 -- 4/12/04 -- Page 4 courses, videotaped training, or by attending regional or statewide training. III. whistleblowers Although state law protects state employees from retaliation when they report problems, there are no similar laws for special districts' employees. Senate Bill 1272 prohibits special districts' employees file://C:\Documents%20and%20Settings\tappan\Local%20Settings\Temporary%20Internet... 4/20/2004 SB 1272 Senate Bill -Bill Analysis Page 4 of 13 (both members of their governing boards and those employed by districts) from using their official authority or influence to intimidate, threaten, coerce, command any person with the purpose of interfering with their rights disclose information about improper governmental activities. Improper governmental activities include violations of state or federal laws, or gross misconduct or gross negligence. violations of this prohibition can result in civil damages. SE 1272 requires the county auditor of the county in which a special district is located (or where the district's primary office is located) to administer the bill's provisions for investigating and reporting on improper governmental activities. If the county auditor finds that a district employee may have engaged in improper governmental activities, the auditor must send the investigative report to the employee's appointing power. The appointing power has 60 days to serve notice of adverse action against the employee or explain in writing the reasons for not acting. The bill also requires the county auditor to report the improper activity to the head of the employing agency, or the appointing authority. That person must tell the county auditor about any action taken. That person must report to the county auditor within 30 days and then every month until final action has been taken. If the county auditor concludes that the activity may involve a criminal violation, the county auditor must report the activity to the district attorney or -county council.• SB 1272 allows special district employees and job applicants who file written complaints with their supervisors, managers, or appointing powers alleging acts of reprisal, retribution, threats, coercion, or improper acts to also file their complaints with the district's SS 1272 -- 4/12/04 -- Page 5 personnel department within 12 months of the incident. The personnel department must send a copy of its investigative report to the county auditor. Intentional acts of reprisal, retaliation, threats, coercion, or similar acts against special districts' employees or job applicants for making protected disclosures can result in a fine of up to $10,000 and a jail term of up to a year. Civil damages, including punitive damages, plus attorney's fees are also available if the injured party filed a complaint with a district's personnel department and the file://C:\Documents%20and%20Settings\tappan\Local%20Settings\Temporary%20lntemet... 4/20/2004 t SB 1272 Senate Bill -Bill Analysis Page 5 of 13 T department issued or failed to issue findings. If there is a preponderance of evidence that a protected activity contributed to the retaliation, then the burden of proof is on the supervisor, manager, or appointing power to show that the action occurred for legitimate, independent reasons. IV. Stipends The most common way for special districts to compensate their board members is by paying stipends. Many districts pay stipends to their board members for attending a meeting or performing a day's work, following statutory schedules. Recreation and park districts, for example, may pay stipends of up to $100 a day for attending board meetings, but directors can't receive more than $500 a month. There has not been a comprehensive review since the Senate Local Government Committee's 1987 interim hearing on 'Deregulating Local Officials' Compensation. - Until 1984, districts sponsored bills seeking legislative approval to boost the amounts of their directors' stipends. Tired of acting on repeated requests for what they perceived as a local matter, legislators partially deregulated many districts' stipends. Legislation authored by the Chairman of the Senate Agriculture and Water Resources Committee raised water districts' stipends to $100 a meeting and then allowed the districts to boost these stipends if they adopt local ordinances. A district's ordinance is referendable and the statute doubles the amount of time that opponents have to circulate referendum petitions from the usual 30 days to 60 days (SB 1370, Ayala, 1984) . In 2000, the Legislature extended these procedures to sanitary, sanitation, and fire SB 1272 -- 4/12/04 -- Page 6 districts (SB 1559, Kelley, 2000 and SB 1756, Kelley, 2000) , and later to recreation and park districts (SB 707, Senate Local Government Committee, 2001) and cemetery districts (SB 341, Senate Local Government Committee, 2003) . In 1989, the Legislature increased the number of meetings for which districts can pay stipends from 6 meetings a month to 10 meetings a month (AB 653, Jones, 1989) . Senate Bill 1272 allows special districts to pay up to $100 a day for each day's attendance at board meetings as defined in the Ralph M. Brown Act, or for each day's service as a board member when requested by the governing board. The bill limits the number of compensable days to six days a month. SB 1272 repeals the statutory provision that allows many types of special districts to increase their stipends by adopting local ordinances. file://C:\Documents%20and%20Setti ngs\tappan\Local%20Settings\Temporary%201ntemet... 4/20/2004 SB 1272 Senate Bill -Bill Analysis Page 6 of 13 Y V. Salaries Although rare, some districts have statutory permission to pay regular monthly salaries to their board members. For example, the East Bay Municipal Water District can pay its board members monthly salaries of up to $600 a month, with 58 annual increases (SB 1606, Pettis, 1986) . Irrigation districts that are in the electricity business can pay their board members monthly salaries of up to $600 or annual salaries of up to $15,000 (SB 1805, Kelley, 1998) . The Imperial Irrigation District can pay its directors annual salaries equivalent to the salaries of the Imperial County Board of Supervisors (SB 454, Kelley, 1997) . Senate Bill 1272 prohibits special districts from paying salaries to the members of their governing boards. VI. Expenses Some special districts' statutes allow their board members to recover their expenses. Senate Bill 1272 requires special districts' employees and board members to be reimbursed based on the Internal Revenue Service accountable plan guidelines, provided that they do not exceed state employees' standard travel reimbursement. The bill requires that advance payments or reimbursements to special districts' governing board members must be supported by receipts for the actual amounts of the expenses. VII. Benefits For nearly 65 years, state law has allowed SB 1272 -- 4/12/04 -- Page 7 all local agencies --- including special districts --- to provide their governing board members with a wide variety of fringe benefits in addition to their stipends, salaries, or expenses (AB 2103, Desmond, 1939) . These benefit programs include group insurance for hospital, medical, surgical, disability, legal, dental, life insurance, income protection, and annuities. Local agencies can also allow their governing board members to participate in deferred compensation plans and pension trusts just like their employees. Paying benefits to former local elected officials grew from several smaller legislative decisions. By the late 1970s, some counties were already paying the premiums on group insurance benefits for former county supervisors. In 1979, the Legislature codified this practice, allowing all local agencies to pay health and welfare benefits to -retired" elected officials (AB 1742, Thurman, 1979) . Responding to an Attorney General's opinion, the Legislature clarified the law and allowed local agencies to pay health and welfare benefits to -former- elected officials (AB 2162, Thurman, 1980) who had served at least 12 years (AB 1572, Marguth, 1982) . At the request of the Los Angeles Unified file://C:\Documents%20and%20Settings\tappan\Local%20Settings\Temporary%20Intemet... 4/20/2004 SB 1272 Senate Bill -Bill Analysis Page 7 of 13 School District, the Legislature reduced the minimum service to one term of office, provided that the board member paid the full cost (SB 98, Carpenter, 1982) . In 1993, the Legislature closed off access to the Public Employees Retirement System for newly elected members of school boards and special districts' governing boards, but not to city councilmembers or county supervisors (SB 53, Russell, 1993) . In 1994, responding to allegations of high (but undocumented) costs to local agencies, the Legislature imposed new restrictions on health and welfare benefits (SB 1983, Leslie, 1994) . Local agencies can provide health and welfare benefits to former elective members of their legislative bodies only under specific conditions: A local agency that provided benefits to former elective officials before January 1, 1995, cannot provide those benefits to an official to takes office after that date, unless the person pays for the benefits. SB 1272 -- 4/12/04 -- Page 8 A local agency that did not provide benefits to former elective officials before January 1, 1994, cannot provide those benefits to former elective officials unless they pay for the benefits. A local agency that provided benefits to former elective officials before January 1, 1994, can continue to provide those benefits to those former elective officials. Senate Bill 1272 prohibits special districts from providing group life insurance or health and welfare benefits to members of their governing boards who are first appointed or first elected to a term of office beginning on or after January 1, 2005, "unless the person participates on a self-pay basis. " SB 1272 prohibits special districts from providing retirement benefits to members of their governing boards who are first appointed or first elected to a term of office beginning on or after January 1, 2005. Comments 1. Integrity and accountability Good government requires the support of the governed. Government leaders earn their constituents' trust by acting in the public interest and behaving with integrity. But the public's trust in file://C:\Documents%20and%20Settings\tappan\Locai%20Settings\Temporary%201ntemet... 4/20/2004 SB 1272 Senate Bill -Bill Analysis Page 8 of 13 representative democracy is fragile; even small ethical lapses can swiftly undermine confidence in public institutions. Like Caesar's wife Calpurnia, public officials must be seen to be above reproach. Responding to legislators' concerns about the governance of special districts, SB 1272 boosts public confidence in these most local of governments by increasing audit requirements, instituting ethics training, and protecting whistleblowers. 2. Local democracy The best medicine for democratic ills is the ballot box. Comunities elect their own leaders and special districts' voters are free to change those who govern every four years. Districts are clearly the creatures of statute, but legislators don't need to meddle in the day-to-day business of running thousands of programs. SB 1272 shifts that balance by micro-managing special districts' governance. Instead of setting broad SB 1272 -- 4/12/04 -- Page 9 standards and letting local elected officials adapt them to fit local conditions and circumstances, the bill's detailed requirements for state supervision of audits and cumbersome whistleblower provisions are excessive. Legislators need to watch what they've created, but they shouldn't overreact. 3. Goose and gander The Senate Local Government Committee's interim hearing in November 2003 showed legislators that special districts are fallible. The hearing also demonstrated support for reforms that boost the public's trust in their own local governments. Some speakers asked legislators to consider extending new reforms to the other segments of local government, including the county supervisors, city councilmembers, and school districts' trustees. If limits on compensation, mandatory ethics training, and state scrutiny of audits are good ideas for the state's 3,300 special districts, then they're good for the 58 counties, 487 cities, and 1,100 school districts. If it's good for the goose, then why not the gander? 4. A culture of ethics SB 1272 provokes an age-old debate about good behavior. An ethical person living in an ethical culture has little need for external, legalistic controls. In the absence of an ethical culture, formal rules are needed to restrain bad behavior. The bill increases the procedures, standards, and rules that constrain special districts' operations. The Committee may wish to consider an alternative approach that would waive many of these new restrictions for special districts that embrace a culture of ethical behavior. If a district regularly encouraged its officers and employees to behave file://C:\Documents%20and%m20Settings\tappan\Local%20Settings\Temporary%20Intemet... 4/20/2004 SB 1272 Senate Bill -Bill Analysis Page 9 of 13 openly, to report lapses to neutral third-parties, and to correct problems without retribution, the district would not need to comply with the bill's extra requirements for audits, training, and whistleblowers. Instead of regulating bad behavior, shouldn't legislators encourage good behavior? 5. Audit requirements By allowing the State Controller to test the quality of special districts' audits, SB 1272 follows the precedent that legislators set for school districts. If the Controller finds that a school district's auditor has missed important items, the SB 1272 -- 4/12/04 -- Page 10 Controller can ban the auditor from school district work. SB 1272 follows that precedent as well as imitating the corporate precedent for rotating lead auditors every six years. Keeping auditors on their toes should rebuild confidence in the auditing function. However, the Committee may wish to consider whether small districts can afford these new requirements. SB 1272 lets the Controller waive the rotation requirement if 'no otherwise eligible auditor is available.- That's a tough standard because there's always some auditor somewhere who's available at some price. The Committee may wish to consider an amendment that requires the Controller to consider the cost of the other auditor. 6. Ethics training SB 1272 takes an important step towards restoring public confidence by requiring special districts' board members to regularly review their ethical obligations. But the bill's language isn't clear enough. The Committee may wish to consider amendments that: Clarify the FPPC's role in setting the course content (page 10, lines 6 and 7) . Allow officials to take local courses, not just regional or statewide programs (page 10, line 9) . Expand the listed curriculum, not just five specific sections (page 10, line 12) . Require senior executives to take training, not just board members (page 10, line 14) . Provide a clear starting time for this new requirement, perhaps within a year of taking office. The Committee may wish to consider substituting the language for special districts' ethics training that was proposed in SB 609 (Costa, 2001) . 7. Lost in transition The bill's provisions that protect whistleblowers from retribution parallel the statutes that protect state employees. There are problems in translating requirements that come from a vast state personnel apparatus to apply to special districts that have only a file://C:\Documents%20and%20Settings\tappan\Local%20Settings\Temporary%20lntemet... 4/20/2004 SB 1272 Senate Bill -Bill Analysis Page 10 of 13 couple of workers. The result is cumbersome requirements that local officials will have a tough time implementing. The Committee may wish to consider amendments that: Avoid duplicate reporting duties with conflicting time limits for the county auditors (page 11, line 34 and page 12, line 20) . Use consistent terms that are appropriate to special SE 1272 -- 4/12/04 -- Page 11 districts rather than "appointing authority, " "head of the employing agency, " and "personnel department. " Clarify what the personnel department of a special district must do to avoid t 'the department has issued, or failed to issue, findings' (page 13, lines 21 and 22) . S. Stipends The bill reverses a 20-year legislative policy that allows local elected officials to set their own stipends with referendable local ordinances. That action effectively cuts the stipends in districts that had used current law to raise their stipends above $100 a day. It reduces the number of compensable days for some districts from 30 days to 6 days a month. A uniform, statewide approach may not work well because of the state's diversity. The Committee may wish to consider amendments that: Limit stipends to $100 a day, but grandfather higher amounts adopted before January 1, 2004. Allow larger districts and districts with larger programs to give stipends for 10 days of service not just six days a month. Allow districts to give stipends to directors who represent the district at public functions other than board meetings, provided that the director receives formal approval from the district's board of directors before the event and reports back to the board in writing at its next meeting. 9. Salaries A few special districts, mostly in the water or electricity business, have convinced legislators to let them pay flat monthly salaries to their board members. These provisions are exceptions to the implied statutory policy that elected officials are performing a public service rather than undertaking a paid career. SB 1272 bans the practice of paying salaries to elected board members by limiting districts to paying per-day subsidies. The Committee may wish to consider whether these utility operations should continue to pay salaries to their board members. 10. Expenses Reacting to the problems uncovered by the Sacramento Suburban Water District, SB 1272 requires file://C:\Documents%20and%20Settings\tappan\Local%20Settings\Temporary%20Intemet... 4/20/2004 SB 1272 Senate Bill -Bill Analysis Page I of 13 i districts' board members and employees to follow the IRS standards and state employees' travel standards when 13 SB 1272 -- 4/12/04 -- Page 12 seeking reimbursement for their expenses. Curiously, the bill requires the board members to support their expense claims with receipts, but does not require the districts' employees to present receipts. The Committee may wish to consider an amendment that requires employees to document their expense claims with receipts, just like the board members. it . Definition The new reforms apply to "special districts" as defined in SB 1272. While the new definition is similar to some existing statutory definitions of special districts, it'a limited to agencies "governed by an elected governing board- (page 7, lines 31 and 32) . The etate's 252 public cemetery districts are exempt from SB 1272 because their boards are appointed to fixed terms. The nearly 50 mosquito abatement districts do not need to comply with SB 1272 for the same reason. Nor will the state's biggest special district, the Metropolitan Water District of Southern California. The Committee may wish to consider an amendment that includes all independent special districts; those with elected board members and those with board members who served for fixed terms. file://C:\Documents%20and%20Settings\tappan\Local%20Settings\Temporary%20Intetnet... 4/20/2004 SB 1272 Senate Bill - Bill Analysis Page 12 of 13 SB 1272 -- 4/12/04 -- Page 13 Support and Opposition (4/15/04) Support State Controller Steve Westly, California School Employees Association. Opposition California Association of Port Authorities, California Association of Public Cemeteries, California Association of Sanitation Agencies, California Healthcare Association, California Special Districts Association, Mosquito and Vector Control Association of California, Public Water Agencies Group, Baker Manock & Jensen. Alameda County Flood Control & Water Conservation District, Bear Valley Community Services District, Big Bear Municipal Water District, Byron Bethany Irrigation District, Castaic Lake Water Agency, Chico Area Recreation & Park District, Citrus Heights Water District, Clovis Cemetery District, Coachella Valley Water District, Cucamonga Valley Water District, East Bay Municipal Water District, E1 Dorado Irrigation District, Fair Oaks Recreation & Park District, Fresno Westside Mosquito Abatement District, Hayward Area Recreation & Park District, Henry Miller Reclamation District #2131, Hesperia Recreation & Park District, Hidden Valley Lake Community Services District, Humboldt Bay Harbor, Recreation & Conservation District, Indian Wells Valley Water District, Jurupa Community Services District, Kensington Police Protection & Community Services District, Laguna Beach County Water District, Leucadia Wastewater District, Mesa Consolidated Water District, Mission Oak Recreation & Park District, Mojave Water Agency, Monterey Peninsula Regional Park District, Monte Vista Water District, Mt. View Sanitary District, Murrieta County Water District, North Merin Water District, Olivenhain Municipal Water District, Oxnard Harbor District, Paso Robles Cemetery District, Placer Consolidated Fire Protection District, Placer Mosquito Abatement District, Plain View Water District, Public Cemetery District No. 1 of Kern County, Reclamation District No. 2068, Richardson Bay Cemetery District, Rio Alto Water District, Rockville Cemetery District, Rowland Water District, Running Springs Water District, San Bernardino Valley Water Conservation District, San Diego County Water Authority, San Jacinto Valley Cemetery District, San Joaquin River Exchange Contractors Water Authority, San Juan Water District, Santa 17 SB 1272 -- 4/12/04 -- Page 14 file://C:\Documents%20and%20Settings\tappan\Local%20Settings\Temporary%20Intemet... 4/20/2004 SB 1272 Senate Bill -Bill Analysis Page 13 of 13 Clara Valley Water District, Selma Cemetery District, South Tahoe Public Utility District, Squaw Valley Public Service District, Summit Cemetery District, Sweetwater Authority, Tulelake Irrigation District, Tulare Irrigation District, United Water Conservation District, Vallecitos Water District, Valley-Wide Recreation & Park District, Valley of the Moon Water District, Vallecitos Water District, Vista Irrigation District, Walnut Valley Water District, Yorba Linda Water District, Yuba County Water Agency. file://C:\Documents%a20and%20Settings\tappan\Local%20Settings\Temporary%20Intemet.. 4/20/2004 7 STEERING COMMITTEE Meebng Date To Bd.or Dir. 4/W04 AGENDA REPORT IhapNXber Hw NiiinW Orange County Sanitation District Y FROM: Blake P. Anderson, General Manager Originator: Jean Tappan, Committee Secretary SUBJECT: May Agenda Items for Consideration by Working Committees GENERAL MANAGER'S RECOMMENDATION Review with staff the agenda items tentatively scheduled for review by the Working Committees in May. 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 May: OMTS Committee: 1. Approve Resolution to Accept Grant Money (Proposition 13, Phase III) 2. Permit Agreement for Groundwater Discharge between OCSD and IRWD PDC Committee: 1. Ratify Change Order No. 14 to Job No. P1-37, Primary Clarifiers and Related Facilities 2. Ratify Change Order No. 6 to Contract No. 1-2-4, Bushard Trunk Sewer Rehabilitation 3. Approve PSA for PSA-2003-177-BD, Electrical Acceptance Testing Services for Collection System and Treatment Plant Projects 4. Approve PSA for PSA-2003-176-BD, Surveying Services for Collection System and Treatment Plant Projects 5. Approve PSA for PSA-2003-175-BD, Materials Testing, Inspection, and other Geotechnical Services for Collection System and Treatment Plant Projects 6. Approve Final Closeout Agreement for Job No. J-40-6, Effluent Pathogen Reduction 7. Approve Final Closeout Agreement for Contract 7-7-2, Main Street Pump Station 8. Approve PSA for SP-94, Plant Water VFD Replacement at Plant No. 1 FAHR Committee: 1. Consider Preliminary 2004-05 Budgets 2. Consider Temporary Services contract 3. Receive and file Nine Month Financial Reports 4. Receive and file Quarterly Investment Management Program Report 5. Receive and file Quarterly Swap Management Report 6. Consider Human Resources Policies and Procedures 7. Consider Safety Policies PROJECT/CONTRACT 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 CEOA FINDINGS Not a project. ATTACHMENTS NA jt N:WpOapMV4xnry LOIInYMNbiV[Ypt90 1pl d/JU Iw WYvtlR Page 2 STEERING COMMITTEE Meetlng Date To ad.of Dir. a/ze/oa AGENDA REPORT I N2Wr Rem Number Orange County Sanitation District N .O FROM: Blake P. Anderson, General Manager Originator: Jean Tappan, Committee Secretary SUBJECT: Agenda Items for Consideration by the Board GENERAL MANAGER'S RECOMMENDATION Review with staff the agenda items tentatively scheduled for consideration by the Board at its April 28, 2004 meeting. SUMMARY Staff routinely prepares for the Steering Committee lists 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 Board at the April 28, 2004 meeting: 9. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. (1) Adopt Resolution No. OCSD 04.11, Accepting The Proposition 13 Watershed Protection Grant for Phase II of the Fat, Oil and Great Control Study from the State Water Resources Control Board, for Phase II of the FOG Control Study, in an amount not to exceed $250,000; and, (2) Authorize the General Manager to enter into an agreement with the State Water Resources Control Board for said Proposition 13 Watershed Protection Grant, and to comply fully with the terms and conditions specified in the grant agreement, in a form approved by General Counsel. b. Receive and file summons and complaint re Freitas v. Orange County Water District, Orange County Sanitation District, at al., Los Angeles County Superior Court Case No. BC310833, and authorize General Counsel, to appear and defend the interests of the District. C. Adopt Resolution No. OCSD 04-12, Appointing Representatives for the District to Act as Agents on its Behalf in the Small Claims Courts of Orange County Judicial Districts and Repealing Resolution No. OCSD 98-27. END OF CONSENT CALENDAR 10. Consideration of items deleted from Consent Calendar, if any. COMMITTEE REPORTS AND RECOMMENDED ACTIONS 11. STEERING COMMITTEE Consent Calendar a. Order draft Steering Committee Minutes for the meeting held on March 24, 2004 to be filed. Non-Consent Calendar b. Review and consideration of agenda items considered by the Steering Committee re the April 28, 2004 meeting. C. Consideration of items deleted from Steering Committee Consent Calendar, if any. 12. OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE (OMTS) OMTS Consent Calendar a. Order draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on April 7, 2004 to be filed. b. (1) Approve a staff-led asset management program to implement the 2002 Asset Management Strategic Plan and achieve the recommendations of the 2003 Asset Management Peer Review report; and, (2) Authorize the General Manager to negotiate and enter into a sole source agreement for Asset Management Services, Job No. SP-68-02, to provide professional services related to staff mentoring and program development for a one year period for a total amount not to exceed $368,000. C. Authorize the General Manager to exercise emergency provision of Resolution No. OCSD 04-08, Article III, Section 3.03(C), and award a contract to the lowest responsive and responsible bidder for Emergency Repairs and Modifications of four Plant 2 Underground Fuel Storage Tanks and related work, Specification No. E-2004-188 BD, for an amount not to exceed $280,000. r�acMd�� o ca,.�neaoawya<zaoa w,a uu m,RrA ew.a..,aoc Page 2 OMTS Non-Consent Calendar d. Approve Amendment No. 7 to the Agreement for Removal and Disposal/Reuse of OCSD's Residual Solids with Synagro West, Inc., providing for a contract extension from June 30, 2004 to June 30, 2014, with two additional five-year extensions as follows, for an annual amount not to exceed $5,800,000 per year: 1) $37.62 per wet ton for Class B biosolids land applied in Maricopa County, Arizona; 2) $38.50 per wet ton of biosolids composted at the Regional Compost Facility in Corona, California; 3) $39.50 per wet ton for Class B biosolids land applied at Fort Mojave, Arizona; 4) $43.75 per wet ton of biosolids composted at Fort Mojave, Arizona; 5) $45.50 per wet ton of biosolids composted at Arizona Soils; and, 6) $49.00 per wet ton, at a minimum of 200 wet tons per day, of Class B biosolids composted at the South Kern Industrial Center. e. Consideration of items deleted from OMTS Committee Consent Calendar, if any 13. PLANNING, DESIGN AND CONSTRUCTION COMMITTEE (PDC) PDC Consent Calendar a. Order draft Planning, Design and Construction Committee Minutes for the meeting held on April 8, 2004 to be filed. b. Accept Short Term Ocean Outfall Bacteria Reduction, Job No. J-87, as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement with J.F. Shea Construction, Inc. C. Ratify Change Order No. 2 to Warner Avenue Relief Sewer, Contract No. 11-22, with ARB, Inc., authorizing an addition of$182,109, and time extension of 23 calendar days, increasing the total contract amount to $5,424,149. d. Ratify Change Order No. 7 to Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, with J.F. Shea Construction, Inc., authorizing an addition of $194,205, increasing the total contract amount to $15,283,121. w woWavm.vaw.00v cq,m.naawaweroazaw una nnem,ian manv.mc a�,.�: Page 3 e. Receive report on Draft Subsequent Environmental Impact Report for Treatment Plant No. 2 Headworks Replacement Project, Job No. P2-66 (information only). f. Approve Amendment No. 7 to the Professional Services Agreement with Brown and Caldwell, providing for additional engineering services for Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37, for an additional amount of$992,957, increasing the total amount not to exceed $6,198,661. g. Approve Amendment No. 4 to the Professional Services Agreement with Carollo Engineers, providing for additional engineering services for Solids Storage and Truck Loading Facility at Plant No. 2, Job No. 132-60, for an additional amount of $171,786, increasing the total amount not to exceed $1,393,671. h. Approve Amendment No. 3 to the Professional Services Agreement with Environmental Science Associates, providing for additional environmental services for Supplement No. 1 to the 1999 Strategic Plan Program Environmental Impact Report, Jab No. J-40-5, for an additional amount of $141,000, increasing the total amount not to exceed $513,500. PDC Non-Consent Calendar i. Consideration of items deleted from PDC Committee Consent Calendar, if any 14. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (FAHR) FAHR Consent Calendar a. Order draft Finance, Administration and Human Resources Committee Minutes for the meeting held on April 14, 2004 to be filed. b. Receive and file Treasurer's Report for the month of March 2004. C. Approve Revision 2 of SAFETY-POL-101, Injury and Illness Prevention Program, as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program Policy. d. Approve SAFETY-POL-107, Hazard Communication Policy, as provided for in Resolution No. OCSD 02-5, regarding the District's Hazard Communication Program. H:WaWVWnWlSlaen^OCemnXaeNlUpW046M lief o1 '.MR EwNer.�c Page 4 e. Approve SAFETY-POL-108, Contractor Safety Policy, as provided for in Resolution No. OCSD 02-5, regarding the District's Contractor Safety Program. I. Approve SAFETY-POL-115, Backflow Prevention Policy, as provided for in Resolution No. OCSD 02-5, regarding the District's Backflow Prevention Program. g. Adopt Resolution No. OCSD 04-09, Dedicating Revenues for the Payment of Debt Obligations. h. Approve three Deferred Payment Agreements negotiated by the General Manager for the collection of all charges and fees owed for sanitary sewer service charges and industrial discharge permit fees, plus interest of 7% per annum, with Dee Shin USA, Inc., Expo Dyeing & Finishing, Inc., and Y21K Textile, Inc. i. Approve a one time only non-base building payment for the Secretary to the General Manager in an amount not to exceed $1,200. FAHR Non-Consent Calendar j. (1) That the Board of Directors authorize and implement the Sanitary Sewer Service Charges for Fiscal Year 2004-05, adopted by Ordinance No. OCSD 20 in July 2003, that are subject to annual reaffirmation by a two-thirds vote. ----- Or----- (2) That the Board of Directors authorize and implement the Sanitary Sewer Service Charges for Fiscal Years 2004-05, 2005-06, 2006-07 and 2007-08, adopted by Ordinance No. OCSD 20 in July 2003, that are subject to annual reaffirmation by a two-thirds vote, and to repeal the requirement of reaffirmation in future years. k. Consideration of items deleted from FAHR Committee Consent Calendar, if any 15. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar a. Order Joint Groundwater Replenishment System Cooperative Committee Minutes for the meeting held on March 8, 2004 to be filed. H:Weg wftl,Wng CwmYllx\WUpM13B01 un 0 Ms ro,MR�1 q„,W gQggg Page 5 GWRSSC Non-Consent Calendar b. (1) Approve a budget amendment of$15,454,000, increasing Orange County Sanitation District's budget for the Groundwater Replenishment (GWR) System, Job No. J-36, to $251,660,000; and, (2) Authorize award of a construction contract by the Orange County Water District (OCWD) to J. F. Shea Construction, Inc., for construction of GWR System Advanced Water Treatment Facilities, Contract No. GWRS- 2004-1, for an amount not to exceed $292,060,066, with OCWD paying $146,660,033 and Orange County Sanitation District paying $145,400,033. C. Authorize award of a construction contract by the Orange County Water District (OCWD) to Layne Christensen Company, for construction of Groundwater Replenishment System Barrier Facilities, Contract No. GWRS-2003-3, for an amount not to exceed $12,621,053, with OCWD and Orange County Sanitation District paying equal shares of $6,310,526.50. d. Consideration of items deleted from GWRSSC Consent Calendar, if any. NON-CONSENT CALENDAR 16. Consideration of the following actions regarding environmental documentation required to approve Treatment Plant No. 2 Headworks Replacement, Job No. P2-66 project: (1) Receive and file Final Subsequent Environmental Impact Report for the Treatment Plant No. 2 Headworks Replacement Project, dated April 2004, prepared by Environmental Science Associates (ESA); and, (2) Adopt Resolution No. OCSD 04-10, Certifying the Final Subsequent Environmental Impact Report for Implementation of the Treatment Plant No. 2 Headworks Replacement Project, Job No. P2-66; Making Certain Findings relating to Environmental Effects identified in the Final Subsequent Environmental Impact Report; Adopting a Mitigation Monitoring and Reporting Program; and Adopting a Statement of Overriding Considerations. PROJECT/CONTRACT COST SUMMARY WA H�nCMniER'OLN 2d U dP WS RBWN n..«a: erzoso Page 6 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 CEOA FINDINGS Not a project. ATTACHMENTS NA jt n w.preamae�sem.q ta+.+.naomav�nwzaoa�u a u.s ion iwA eo.mmaoo Page 7 ORANGE COUNTY SANITATION DISTRICT (714)962-2411 Mailing Address: P.O. Box 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 OCSD 2/13/03