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Home My WebLink About2006-06 MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, June 28, 2006. at 5 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, June 28, 2006 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: STAFF PRESENT: Directors Present: Jim Ruth, Interim General Manager Steve Anderson, Chair Nick Arhontes, Director of Regional Assets Jim Ferryman, Vice Chair and Services Carolyn Cavecche, Chair, OMTS Bob Ghirelli, Director of Technical Services Committee Jim Herberg, Director of Operations and Darryl Miller, Chairman, FAHR Committee Maintenance Tod Ridgeway, Chairman, PDC Committee David Ludwin, Director of Engineering Lorenzo Tyner, Director of Directors Absent Finance/Treasurer Jim Silva, County Supervisor Lisa Tomko, Director of Human Resources Gail Garrett, Committee Secretary OTHERS PRESENT: Michael Gold, Legislative Affairs Liaison Bradley R. Hogin, General Counsel Mike Moore Don Hughes Layne Baroldi Barry Newton, Creative Management Ryan Wheeler Solutions, Inc. (2) APPOINTMENT OF CHAIR PRO TEM IN THE FILED OFFICE OF THE SECRETARY ORANGE rnpNT�....._._.., nwrRicT No appointment was necessary. JUL 19 zoos (3) PUBLIC COMMENTS by There were no comments by any member of the public. Minutes of the Steering Committee Page 2 June 28, 2006 (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the May 24, 2006 Steering Committee meeting were approved as drafted. (6) REPORT OF THE COMMITTEE CHAIR Chair Steve Anderson introduced Michael Gold, Legislative Affairs Liaison. Mr. Gold provided an update on three major issues relating to contracting procedures for the design- build Assembly Bill AB2580. CASA will hold their Annual Conference in Monterrey, CA on August 9-12, 2006. Directors are to notify committee secretary if they will attend. Mr. Anderson provided a brief report on his trip last week to Washington DC, accompanied by Wes Bannister, OCWD Chair, and Virginia Grebbien. They met with representatives from the Orange County delegation and Senators Feinstein and Boxer on the status of three projects for which we are seeking federal funding: GWRS, SARI line, and secondary treatment. Chair Anderson announced the standing committee meeting dates for July, and noted that, due to the League of Cities conference, the Steering Committee and Board meetings will meet a week earlier, on Wednesday, July 19, 2006. Director Ridgeway announced that he will not attend the July Steering and Board meetings. (6) REPORT OF THE GENERAL MANAGER A. Due to time constraints, Interim General Manager Jim Ruth said he would review the June Status Report at the Board meeting tonight. B. Independent Reviews i. Operations and Maintenance Jim Herberg, Director of Operations and Maintenance, discussed the Spring 2006 Operations and Maintenance Staffing study and a proposed independent follow-up analysis which would provide a more detailed assessment of the work load, efficiency, and staffing needs for the O&M and RA&S departments. Directors expressed concerns with the estimated consulting services costs of$250,000 and directed staff to refer the independent review to the OMITS Committee for further discussion. Minutes of the Steering Committee Page 3 June 28, 2006 ii. Capital Improvement Plan David Ludwin, Director of Engineering, provided a brief history of the Capital Improvement Program and described the scope of work for the proposed CIP independent assessment. Directors expressed concern with the estimated costs proposed for an in depth review. Some directors agreed that staff has already provided a detailed review resulting in the $474 budget cut. Committee members concurred that the main focus now is to evaluate the current CIP portfolio. District staff was directed to go forward with the ASCE evaluation at an estimated cost of$20,000 and get further direction at the July PDC. (7) REPORT OF GENERAL COUNSEL General Counsel Brad did not report. (8) DISCUSSION ITEMS (Items A-C) A. Performance Appraisal System for General Manager Recommend to the Board to approve the performance appraisal and evaluation program for the General Manager, dated June 28, 2006, to include the fallowing elements: i. Board Management Appraisal Form with GM's recommended goals ii. GM's Annual Planner and Midyear Planner Form iii. GM Performance Appraisal Plan Guidelines Mr. Ruth introduced Barry Newton of Creative Management Solutions, Inc. who presented the new performance appraisal and evaluation program for the General Manager. Mr. Newton described the three major elements and said program will assist in clarifying Board priorities as well as District and General Manager goals. After some discussion, it was the consensus of all members present that the Steering Committee conduct the GM's performance appraisal interviews annually, with input from the full Board. Mr. Newton will present the program to the full Board in July. The Steering Committee directed General Counsel to agendize the GM's Performance Appraisal and Evaluation annually at the May and June Steering Committee and Board to jump start the process. Minutes of the Steering Committee Page 4 June 28, 2006 B. The Agenda Items scheduled to be reviewed by the Board's working committees in July were reviewed. C. The agenda items scheduled to be presented to the Board at tonight's meeting were reviewed. Directors requested that Item 22 be pulled from the Board agenda. (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY a. Convene in Closed Session to confer re Appointment of Assistant General Manager, Government Code 54957(b)(1). This supplemental agenda item was considered under Closed Session. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT Staff was directed to bring Item 2 of the CIP Independent Review scope of work to the PDC Committee in July for discussion. (12) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, July 19, 2006 at 5 p.m. The next Board Meeting is scheduled for Wednesday, July 19, 2006 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:30 p.m. in Closed Session, pursuant to Sections 54956.9(b), 54957(b)(1), 54956.9(c), 54956.9(a), 54956.9, and 54957(b)(1) to discuss six matters. 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 Minutes of the Steering Committee Page 5 June 28, 2006 Committee Closed Meetings. A report of the recommended actions will be publicly reported at the time the approved actions become final. At 7:10 p.m., the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 7:10 p.m. Submitted by: Gail Garrett Steering Committee Secretary H:Wepfbpenda0 ednp CommiffmV WlnulealOVW SC MinuWdw STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and the Agenda for the Steering Committee meeting held on Wednesday, June 28, 2006, was duly posted for public inspection in the main lobby of the District's offices on Thursday, June 22, 2006. IN WITNESS WHEREOF, I have hereunto set my hand this 28th day of June, 2006. Penny Kyle, Wret6ry4dif the Board of Directors of Orange County Sanitation District Posted: June 22, 2006. 12:00 p.m. By: K F Signature H beplbgeMalSleednp C mill¢¢t200@CeNFrWFam da SUPPLEMENTAL AGENDA STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT DISTRICT'S ADMINISTRATIVE OFFICES 108" ELLIS AVENUE FOUNTAIN VALLEY, CA 92708 REGULAR MEETING JUNE 28, 2006 -6:00 P.M. Aaenda 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 Board 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 Board 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 prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Items Continued: Items may be continued from this meeting without further notice to a Committee or Board 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). (10) Other business and communications or supplemental agenda items, if any. a. Confer re Appointment of Assistant General Manager, Government Code 54957(b)(1). KWeptiagendalSteering Committee12006W4T42606 Supplemental agende.doc ORANGE COUNTY SANITATION DISTRICT t NOTICE OF MEETING pl o (714)962 2411 STEERING COMMITTEE rot: 1214i 962i1361i arewet W.wm telllna ad4reaa: ORANGE COUNTY SANITATION DISTRICT PO. 8'u 8122 FauMein Valley CA 92728 B127 eercet eddran: WEDNESDAY, JUNE 28, 2006 - 5:00 P.M. 1 ne44 Enla A lnue Pom2ain Valley rA 92708 701E Matter DISTRICT'S ADMINISTRATIVE OFFICES Mantles 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708 cltlee www.ocsd.com Anehalm Bona Buena Park LyP asa F°°"tli artek Fullerron A regular meeting of the Steering Committee of the B"'tlen are. Board of Directors of the Orange County Sanitation iunengam Beach Ikea District, will be held at the above location, date and Le Hot,. time. Le Palma Les Aleoliros ila wca2 Beach (range Placentia Santa A. Seel Beach Stanton Tuadn ✓lls Perk voroa Linde .ante at Branye Maas, Districts Costa Mass Midway aty Water eletrlcte Irving Rannh CADocuments and Settings\xeroz\Local Settings\Temporary Internet Files\OLK78\1 062806 Notice of Meeting.dcc ID maintain world-class leaderehlP in wastewater and water resource management. STEERING COMMITTEE AND BOARD MEETING DATES FOR THE NEXT TWELVE MONTHS Wednesday, June 28, 2006 'Wednesday, July 19, 2006 Wednesday, August 23, 2006 Wednesday, September 27, 2006 Wednesday, October 25, 2006 'Wednesday, November 15, 2006 'Wednesday, December 20, 2006 Wednesday, January 24, 2007 Wednesday, February 28, 2007 Wednesday, March 28, 2007 Wednesday, April 25, 2007 Wednesday, May 23, 2007 Wednesday, June 27, 2007 `Tentatively rescheduled from regular fourth Wednesday. HadepDagentIMSteeting CommitteeTOMUeeting Dates Fmm2.dm STEERING COMMITTEE (1) Roll Call: Meeting Date: June 28, 2006 Meeting Time: 5:00 p.m. Meeting Adjourned: p.m. Committee Members Steve Anderson, Board Chair............................................. Jim Ferryman, Board Vice Chair......................................... Darryl Miller, FAHR Committee Chair..................................— Carolyn Cavecche, OMTS Committee Chair....................... Tod Ridgeway, PDC Committee Chair................................ Jim Silva, Supervisor..........................................................— Others Brad Hogin, General Counsel Don Hughes Barry Newton, Creative Management Solutions, Inc. Staff Present Jim Ruth, Interim General Manager Nick Arhontes, Director of Regional Assets&Services Bob Ghirelli, Director of Technical Services Jim Herberg, Director of Operations & Maintenance David Ludwin, Director of Engineering Patrick Miles, Director of Information Technology Lisa Tomko, Director of Human Resources Lorenzo Tyner, Director of Financelrreasurer Gail Garrett, Committee Secretary Other Staff Present Michael Gold, Legislative Affairs Liaison c: Lenora Crane C Tomments and Setlings xerox\Local SetlingsXTemporary Internet F leslOWM3 062806Roll Call,can 1 AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, JUNE 28, 2006 AT 5 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California (1) ROLL CALL (2) APPOINTMENT OF CHAIR PRO TEM IF NECESSARY (3) PUBLIC COMMENTS (4) APPROVE MINUTES OF PREVIOUS MEETING Approve the minutes of the May 24, 2006 Steering Committee meeting. (5) REPORT OF COMMITTEE CHAIR (6) REPORT OF GENERAL MANAGER A. Monthly Status Report B. Independent Reviews i. 08M (Herberg) ii. CIP (Ludwin) C. Executive Search Process (7) REPORT OF GENERAL COUNSEL 2 -2- June 28, 2006 Agenda (8) DISCUSSION ITEMS(items A-C) A. Performance Appraisal System for General Manager Recommend to the Board to approve the performance appraisal and evaluation program for the General Manager, dated June 28, 2006, to include the following elements: I. Board Management Appraisal Form with GM's recommended goals ii. GM's Annual Planner and Midyear Planner Form iii. GM Performance Appraisal Plan Guidelines B. Review Agenda Items scheduled to be presented to Committees in July 2006 (Information item only) C. Review and consideration of Agenda Items for Board of Directors Meeting of June 28, 2006 (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (12) FUTURE MEETING DATES The next Steering Committee Meeting is scheduled for 5 p.m., Wednesday, June 28, 2006. The next Board Meeting is scheduled for 7 p.m., Wednesday, June 28, 2006. (13) CLOSED SESSION During the course of conducting the business set forth on this agenda as a regular meeting of the Steering Committee, the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to(a) purchase and sale of real property; (b) matters of pending or potential litigation; (c)employment actions or negotiations with employee representatives:or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Directors during a permitted closed session and are not available for public inspection. At such time as final actions are taken by the Board on any of these subjects,the minutes will reflect all required disclosures of information. A. Convene in closed session, if necessary 3 -3- June 28, 2006 Agenda 1. Confer with Legal Counsel -Anticipated Litigation. Significant Exposure to Litigation [Government Code Section 54956.9(b)]: One case. 2. Confer with Legal Counsel—Anticipated Litigation. Possible Initiation of Litigation [Government Code Section 54956.9(c)]: One case. 3. Confer re Employee Performance Evaluation—Director of Information Technology. [Government Code Section 54957(b)(1)]: one matter 4. Confer with Legal Counsel—Existing Litigation. [Government Code Section 54956.9(a)] re Traveler's Insurance v. Orange County Sanitation District, Orange County Superior Court Case No. 06CC00086. 5. Confer with Legal Counsel—Anticipated Litigation re Kem County Initiative. [Government Code Section 54956.9.] B. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session. (15) ADJOURNMENT 4 -4- June 28, 2006 Agenda 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. Public Comments: Any member of the public may address the Steering Committee on specific agenda items or matters of general interest. As determined by the Chair, 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). Consent Calendar: All matters placed on the consent calendar are considered as not requiring discussion or further explanation, and unless a particular item is requested to be removed from the consent calendar by a Director of staff member,there will be no separate discussion of these items. All items on the consent calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the consent calendar shall be considered in the regular order of business. The Committee Chair will determine if any items are to be deleted from the consent calendar. Items Continued: Items may be 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 Adiournment: 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). 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 prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Notice to Committee Members: For any questions on the agenda or to place any items on the agenda, Committee members should contact the Committee Chair or Secretary ten days in advance of the Committee meeting. Committee Chair: Steve Anderson (562)905-9700(La Habra City Help Interim General Manager: James D. Ruth 1714)593-7110 General Counsek Brad Hogin (714)564-2606 Committee Secretary: Gail Garrett (714)593-7101 (714)962-0356 (Fax) E-mail: ggamett@ocsd.win H'.'aFPINGENWITEERING Cp MEEV00005052400 PGENOA FORH.4 DM 5 MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, May 24, 2006, at 5 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday,April 26, 2006 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: Kennard R. Smart, Jr., Counsel Jim Ferryman, Vice Chair Carolyn Cavecche, Chair, OMITS Committee STAFF PRESENT: Darryl Miller, Chairman, FAHR Committee Jim Ruth, Interim General Manager Tod Ridgeway, Chairman, PDC Committee Nick Arhontes, Director of Regional Assets and Services Directors Absent: Gail Garrett, Committee Secretary Steve Anderson, Chair Juanita Skillman Jim Silva, County Supervisor (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no comments by any member of the public. (4) REPORT OF THE COMMITTEE CHAIR In the absence of Chair Steve Anderson, Vice Chair Ferryman introduced Kennard R. Smart, Jr. who is attending in Brad Hogin's absence. Mr. Ferryman reminded that nominations for Board Chair for 2006-2007 will be opened at tonight's meeting. A 2/3 vote of the full Board is needed to adopt the rate increase. Bob Ghirelli, Director of Technical Services, and Supervisor Silva attended the CASA Spring Conference in Lake Tahoe last month. Mr.Anderson and Dr. Ghirelli are currently in Washington DC to meet with legislative and congressional staff to promote support for District's legislative and grant programs. Mr. Ferryman announced the standing committee meeting dates for June. Director Carolyn Cavecche informed that the OMITS Committee meeting may be cancelled in June. The only planned 6 it Minutes of the Steering Committee Page 2 May 24, 2006 OMTS action Rem for June regarding the approval of the Fleet Management Software for Regional Assets and Services could be moved to the full Board for consideration R the meeting is cancelled. Board members are invited to attend the PDC Committee meeting on June 1°at 5:00 p.m., or the FAHR Committee meeting on June le at 5:00 p.m., to hear the detailed briefing on the proposed budget. A Benefits workshop follow-up meeting for the FAHR Committee will be scheduled in mid-June, (5) REPORT OF THE GENERAL MANAGER Interim General Manager Jim Ruth reviewed activities included in his May Status Report which was placed in the Directors' meeting folders that evening. The two-year budget which is based on a proposed 9.8% rate increase for 2006-07 will be presented to the Board in June. He informed the two proposed rate increase options will be considered by the Board tonight. Counsel Ken Smart clarified the 2/3 adoption process. Mr. Ruth explained that the Succession Plan process has been delayed due to key staff going on two-week reserve duty. A report will be provided at the next meeting. Nick Arhontes informed that the District has issued a letter of intent to purchase a 2.5 acre industrial site in Garden Grove for$6.2 million for the proposed North County Yard. A Purchase and Sale Agreement will now be negotiated for the Board's consideration in June. Mr. Ruth, Directors Anderson and Miller, and Dave Ludwin will discuss SARI line funding with the Orange County CEO on June 8. The new Performance Evaluation program is a simpler and more effective system. Barry Newton, Creative Management Solutions, Inc. will brief the Board on the performance evaluation prototype in June. Dr. Don Grayson, Management Consultant, has performed a comprehensive assessment of the IT department. Mr. Ruth has met with mid-management several times to discuss management leadership training needs. (6) REPORT OF GENERAL COUNSEL Mr. Smart informed the District was served with a lawsuit by Travelers Insurance re a contract issued in 2000. (7) CONSENT CALENDAR ITEMS a. The minutes of the April 26, 2006 Steering Committee meeting were approved as drafted. END OF CONSENT CALENDAR 7 Minutes of the Steering Committee Page 3 May 24, 2006 (8) ACTION ITEMS There were none. (9) INFORMATIONAL ITEMS a. Strategic Initiatives Lorenzo Tyner, Director of Finance, gave a brief report on the ten new strategic initiatives identified by Executive Management as highly strategic. Staff will not increase resources to implement these initiatives. Any costs associated with the initiatives are contained within the budget. In response to Directors' questions, Nick Arhontes, Director of Regional Assets and Services, briefed the Committee members on Initiative 1, Local Sewer Services as an example of one of the initiatives. Mr. Ruth assured the Committee that staff will provide the Board with a time frame and costs for those initiatives that do not overlap ongoing initiatives. b. The Agenda Items scheduled to be reviewed by the Board's working committees in March were reviewed. C. 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 were none. (11) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (12) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION ANDIOR STAFF REPORT There were none. (13) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, June 28, 2006 at 5 p.m. The next Board Meeting is scheduled for Wednesday, June 28, 2006 at 7 p.m. 8 Minutes of the Steering Committee Page 4 May 24, 2006 (14) CLOSED SESSION The Committee convened at 6:24 p.m. in Closed Session, pursuant to Sections 54956.9(b)and 54957(b)(1),to discuss three matters. 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 549572, 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 7:00 p.m.,the Committee reconvened in regular session. (15) ADJOURNMENT The Chair declared the meeting adjourned at 7:00 p.m. Submitted by: Gail Garrett Steering Committee Secretary H tkp'4gw4sUYPwvq CprvM.m11tl6Yk Y/f3006 SC MmNas CRAFi.56i 9 STEERING COMMITTEE MeetlngDate To ad.of Di, 06/28/06 AGENDA REPORT 'u"" (a) Item Number8u Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources SUBJECT: PERFORMANCE APPRAISAL SYSTEM FOR GENERAL MANAGER GENERAL MANAGER'S RECOMMENDATION Approve the performance appraisal and evaluation program for the General Manager, dated June 28, 2006, to include the following elements: • Board Management Appraisal Form with GM's recommended goals • GM's Annual Planner and Midyear Planner Form • GM Performance Appraisal Plan Guidelines SUMMARY District's Consultant, Creative Management Solutions, Inc. was requested to develop a performance appraisal program for the General Manager (GM). A new plan has been designed following an analysis of best market practices and review of the performance appraisal program previously approved by the Board of Directors for the Executive Management Team (EMT) and Mid-Management positions. The new program includes the following elements: • Board Management Appraisal Form with GM's recommended goals (attached) • GM's Annual Planner and Midyear Planner Forms (attached) • Performance Appraisal Guidelines (attached with calendar included) • Sample General Manager Objectives from other organizations (attached) • Outline of 30 Minute Orientation for Meeting (market compensation results and 2006 Compensation Matrix to be provided at meeting for illustration purposes) PRIOR COMMITTEEIBOARD ACTIONS The Board approved a new performance appraisal program for the EMT and Mid- Management positions on April 26, 2006. PROJECTICONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. (Line item: FOM No.M IM I Aqv Repen-SC CM 3M HmW. 821/d108 Page 1 10 ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION The Board has not had a formal performance appraisal system for the General Manager in a number of years. The new program will assist in clarifying Board priorities as well as District and General Manager goals. This will provide clearer policy direction and feedback, which Board members requested during the management audit process. The new program will be linked with the Strategic Planning and Budget Planning processes and the performance expectations set for EMT and Mid-Management positions. The General Manager will be expected to identify potential future goals, list accomplishments, and critique his/her performance while the Board will be able to consider this information in preparing its evaluation of the General Manager's performance. The Steering Committee can integrate Board member ratings and comments into the final review. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. General Manager Annual Planner(completed by GM to initiate process) 2. General Manager Performance Appraisal (completed by the Board for annual review) 3. General Manager Mid-Year Planner(completed by GM to inform the Board about progress and consider modifications of performance goals set at the start of the year) 4. Performance Appraisal System Guidelines 5. General Manager Appraisal Ratings Worksheet(used by the Steering Committee to tally the Board ratings-GM only sees Final Evaluation). FORA NO.DW-102.1 A000da Rep -SC D.W 320 Reve9a. 821I2COS Page 2 11 GENERAL MANAGER ANNUAL PERFORMANCE EVALUATION (DRAFT) Name of General Manager Appraisal Period (From:) Appraisal Period(To:) Date of Appraisal The Board of Directors adopts its major initiatives and strategic goals for the OCSD in concert with the General Manager. This process helps to align priorities, budgets, and work plans for the benefit of customers and staff: Number UNIFYING PRINCIPLES (Aligned With Strategic Plan) C'onrmunitr environmental stewardship, 2 Molivalimral workplace environment. 3 B eetive wastewater management. 4 Soma/flscal management I. GOALSIRESULTS FOR CURRENT REVIEW PERIOD (2005-2006) GM's Program Goals/ Board Comments Goal Rating Adj. Actual Outcomes Mg. (1-5) Rtg. 1.Transform the budget from two-year line item to a two-year program budget for implementation in the 2007-2008 budget year. 15% 4.0 .4 2. Submit a reorganization plan to the Board that will address structure, workload, and span of control. 15% 3. Develop new job descriptions for the General Manager and the proposed Assistant General Manager position consistent with the 5% new organizational plan. 4. Oversee Independent reviews by outside consulting firms of CIP Program, O&M, and RA&S operations to determine their 10% effectiveness on ST and LT basis, and level of market competitiveness. 04126/W Version 1.1 Page 1 12 I. GOALS/RESULTS FOR CURRENT REVIEW PERIOD (2005-2006) GM's Program Goals/ Board Comments Goal Rating -Adj. Actual Outcomes Mg. (ts) >Rtg. 5. Implement new Performance Appraisal System for Executive Management Team (EMT)and Middle Management, effective July 1, 2006. 10% 6. Develop and implement a Succession Plan for all District departments effective July 1,2006. 5% 7. Establish a Labor Strategy for future negotiations with six bargaining units by September 1,2006. 10% 8. Develop a Cooperative Financial Plan with the County of Orange and Santa Ana Watershed Project Authority(SAWPA)to address the need to relocate the Santa Ana River Interceptor(SARI) line. 10% 9. Establish a Leadership Training Program for EMT and Middle Management by September 30, 2006. 5% 10. with Board concurrence, implement the ten major initiatives outlined in the Strategic Plan. 10% BOARD'S RATING OF PERFORMANCE GM GOAL ATTAINMENT 75%Wei htin : Does Not Meet Marginally Meets Exceeds Far Exceeds ❑ Expectations ❑ Meets El Expectations ❑ Expectations Expectations <2.4 Expectations 3.0-3.9 4.0-4.4 4.5-5.0 2.5—2.9 Average Goal Anainment Rating x .75 = Note:One 'Does Not Meet Expectations-would result in an overall rating of'Does Nor Meet Expectations'. 71vo or more 'Marginally Meets Expectations Ratings-would result in an overall "Marginally Meets Expectations'rating. Fewer than 10 Hued gods will result in table modification. Page 2 =26106 Version 1.1 13 II. GOALSIOUTCOMES FOR NEXT REVIEW PERIOD 2006-2007 Description of Program Goals and Work Plans: Mg. 1. 2. 3. 4. B. 6. 7. 8. 9. 10. Page 3 0C AMS Venbn 1.1 14 III. CORE COMPETENCIES FACTORS AND DEFINITIONS FOLLOWED BY RATINGS O0's"" Nipkits Nis I/rW t4rra Earab far EarwN Egrtlabm EXVP q EWsgglae Expatstete EapM 1. Leadership/Decision-Making Aligns management staff with Board s strategic plan and priorities. Maintains focus on results. 1 2 3 4 5 Sets example for others. Uses good judgment and common sense in making decisions. ❑ ❑ ❑ ❑ Comments: 2. Performance Management/Staff Development Sets clear performance standards. Accepts responsibility for the behavior of those helshe 1 2 3 4 5 supervises. Completes performance reviews in a timely manner. Effectively mentors.coaches and motivates other members of management team and staff to achieve desire tl results. ❑ ❑ ❑ ❑ Comments: 3. Interpersonal Skills/Communications/Teamwork Shows sensitivity tact and Insight in relationships win Board and business and community 1 2 3 4 5 relations. Anticipates and resolves potential communications problems.Treats others m a fair. Elconsistent,and respectful manner. Has an open and approachable manner. El 0 El Comments: 4. Budgetary PlanninglManagement Accurately forecasts expected revenues and e>rpenditures required for District projects. 1 2 3 4 5 programs and resources.Ensures that depanmenl heads conform with budgetary guidelines that have been established through the guidance of the Board of Directors. ❑ ❑ ❑ ❑ ❑ Comments: S. CreativityllnnovatioNlnitiative Originates new approaches,encourages independent Ihinking.antl initia(es and ensures that 1 2 3 4 5 actions are implemented to improve individual and organizational performance. Elicits feedback and encourages new systems.processes,and procedures(hat are realistic. ❑ ❑ ❑ ❑ ❑ Comments: BOARD'S RATING OF CORE COMPETENCIES 25% Weighting): Does Not Marginally Meets Exceeds Far Exceeds ❑ Meet ❑ Meets ❑ Expectations ❑ Expectations ❑ Expectations Expectations Expectations 3.0—3.9 4.0—4.4 4.5— 5.0 <2.4 2.5—2.9 A vera a Core Ciamperena Rating s .25 = Note: One raving of"Does Net Meer Expectations' hould result in as overall rating of"Does Not Meer Erpeclarions'. Two or more 'Needs Improvement Ratings'mould result in an overall raring of"Needs Improvement". Page 4 042GOB version 1.1 15 BOARD'S OVERALL RATING OF GENERAL MANAGER (Totaling 100%): Does Not Needs Meets Exceeds Far Exceeds Meet Improvement Expectations Expectations Expectations Expectations 2.5-0.0 3.0-3.9 4.0-4.4 4.5-5.0 <2.4 Taal Rating = Sum of Goal and Com efenn-Ratings Note: One rating of"Does Not Meet FWcfafions"would result in an overall rating of"Marginally Meets Expectations". Two or more "Marginally Meets Erpecfafions Ratings"would result in an overall rating of"Marginally Meets Expecmfiom". IV. OVERALL COMMENTS GENERAL MANAGER'S SUMMARY COMMENTS: BOARD'S RESPONSE TO GENERAL MANAGER'S SUMMARY COMMENTS: General Manager's Signature I Dab Name of Steering Committee Chairperson Steering Commlttae Chairperson's Signature Dab Page 5 W-16 6Version 1.1 16 GENERAL MANAGER'S ANNUAL SELF-EVALUATION PLANNER (Draft) Name of General Manager Rating Period(mm/dd/yy) Date Prepared(mm/dd/yy) From: To: This form provides Input to your performance appraisal as part of the annual appraisal. Complete and submit this form electronically to the Board prior to the performance review meeting. Refer to Board priorities, objectives, and prior reviews(if available)in presenting your ideas. You may attach additional pages, as needed. 1. Describe at least three of your accomplishments in the past fiscal year, considering the Strategic Plan, Board expectations, and your overallperformance: 2. Describe areas in which you could have been more effective in the past fiscal year and what you might do to be more effective In the next fiscal year: 06/06/06 Draft Version 1.1 17 3. Suggest at least three new goals, or changes to existing goals for the next fiscal year that should be shared with the Board and management: 4. Describe what the Board, various Committee representatives, and/or Executive Management Team could do to assist you in perform Ing your job more effectively: General Manager's Signature: Dale: Executive Steering Committee Chairperson's Signature: Dare: 06/06/06 Draft Version I.1 18 GENERAL MANAGER'S MID-YEAR PLANNER (Draft) Employee Name I Rating Period(mm/dd/ Dale Pre aretl Imm/dd/y I From: To: This form offers you the opportunity to update your performance goals given changes in Board program priorities or unforeseen developments. Complete and submit this worksheet electronically to the Board prior to the mid-year progress update. Refer to goals, accomplishments, and comments provided in the latest annual evaluation, in presenting your recommendations. You may attach additional pages, as needed.A Powerpoint presentation may be provided to the Board regarding your accomplishments, and progress against current goals, given the work plans. 1. Identify any changes that should be made to the goals that were established for this period: 2. Explain why you believe these changes should be made: FOR BOARD USE ONLY Board and Steering Committee responses to above items(expandable): General Manager's Signature: Date: Steering Committee Chairperson's Signature: Date: 06/06/06 Version LI 19 J �y SAWTq�� O U _ O A A 9 i liNs THE EHy\P GENERAL MANAGER Performance Appraisal Plan Guidelines DRAFT June 28, 2006 20 v GENERAL MANAGER PERFORMANCE APPRAISAL PLAN GUIDELINES June 28, 2006 Table of Contents Section Topical Question Pages 1.0 What is the purpose of the General Manager Performance 3 Appraisal Plan? (Understanding five major reasons why it is an essential tool for the Board and GM and provides guidance to the EMT; additional plan advantages) 2.0 What have been some of the past problems and what are some of 3 the identified plan improvements? 3.0 What tools will be used in the performance appraisal process? 4 GM's Self-Planner, Management Appraisal, GM's Mid-Year Planner, and GM Rating Worksheet(used by Steering Committee to compile Board ratings) 4.0 What reference documents might be used by Board members in 4 identifying oals and writing comments? 5.0 How do the Board members, Steering Committee, and GM 5 participate in the GM's Performance Evaluation? 6.0 What does the Performance Appraisal Calendar look like and what 5 are the major steps see Visual Calendar)? 7.0 How does this program relate to the performance appraisal system used for the EMT and Mid-Management? 8.0 How should the GM's appraisal be completed and scored? 6 9.0 How is the Compensation Matrix used given market practices to 6 consider the General Managers eligibility for pay increases or lump sum bonuses? 10.0 What other administrative features are involved in evaluating the 7 General Manager, updating the Compensation Matrix, and maintaining these files? DRAFT GM Performance Appraisal Guidelines 21 1.0 What is the purpose of the General Manager Performance Appraisal Plan? 1.1 There are a number of benefits to be realized through the General Manager Performance Appraisal Plan. Five of its most essential uses are as follows: Organize and establish Board priorities and link District goals with strategic planning and budgeting processes. Improve organizational performance through clear work plans that can be followed through the performance period. D Set specific measures and link compensation with expected results. Recognize employee strengths and accomplishments while addressing Board areas of concern through the evaluation process. i% Encourage open and meaningful feedback regarding performance expectations. 1.2 Some of the other major advantages of having the General Manager Performance Appraisal Plan are to have a valid and understandable process, integrate General Manager goals with EMT and Mid-Management goals, and link the rating results to General Manager compensation. 2.0 What have been some of the past problems with the evaluation process and what are some of the identified plan improvements? 2.1 The Board of Directors did not previously have a formal process for evaluating the General Manager. This plan is designed to provide an evaluation process. 2.2 A regular Performance Appraisal Calendar Cycle has been established and performance appraisal rating tools have been provided. 2.3 This program is initiated with the General Manager's suggested goals, accomplishments, and areas for development with the GM's Self-Planner; the Board members consider other potential goals and priorites. The General Manager uses the Mid-Year Plan to inform the Board regarding progress and to update priorities, as needed. 2.4 The Board members are able to evaluate the General Manager's performance and recommend goals for the next performance period that are compiled and integrated by the Steering Committee. 2.5 The General Manager's compensation, and potential base pay increases and/or lump sum payments are to labor market rates and the Compensation Matrix. DRAFT GM Performance Appraisal Guidelines Page 3 22 i 3.0 What tools will be used in the performance appraisal process? 3.1 The forms used for the program are as follows: a. GM Annual Self Planner (initiated by the General Manager and submitted to all Board members). b. Annual GM Performance Appraisal (initiated by Steering Committee and submitted to all Board members to review the General Manager; Steering Committee compiles ratings and comments). c. GM Mid-Year Planner (initiated by the General Manager in December to provide a progress update to the Board in January). d. Compensation Matrix used by the Steering Committee to determine the General Manager's eligibility for base pay or lump sum increases, as supported by market compensation data and the General Manager's overall performance rating, and approved by the Board. e. Performance Evaluation Master Scoring Worksheet (Steering Committee)- used by the designated Steering Committee to enter the individual ratings from the Board members to determine the overall performance evaluation ratings. 4.0 What reference documents might be used by Board members in the performance appraisal process to establish goals and comments for the General Manager? 4.1 Ideas for the General Manager's performance appraisal can be drawn from a number of different resources, which have been summarized in this section. 4.2 The District's Strategic Plan can be used to identify Board priorities that are part of the General Manager's Performance Appraisal. 4.3 The District's Annual Budget can be referenced for major programs and revenue and expenditure projections. The Annual Budget is being reorganized into a program format over the next several years so that 4 will be easier to establish Board priorities. 4.4 Board Agenda Reports and Minutes contain major action items for the General Manager that can be used to write comments and to create goals. 4.5 The Dashboard is used by the EMT to identify measures and objectives pertaining to the District, departments, and divisions, and can be linked back into the General Manager's evaluation. 4.6 The General Manager Job Description can be considered in preparing comments related to the General Manager's competencies and setting goals related to employee performance. Tlps and examples for preparing goals and comments will be presented in the orientation materials. DRAFT GM Performance Appraisal Guidelines Page 4 23 5.0 How do the Board members and the Steering Committee participate in the General Manager's Performance Evaluation? 5.1 Each Board member has the opportunity to identify potential goals and address development areas for the General Manager. Since there are 25 Board members, these ideas will be integrated and prioritized by the Steering Committee. 5.2 The Board is collectively expected to evaluate the General Manager's current performance based upon the competencies and goals established for the period. 5.3 Individual Board members have the opportunity to recommend goals, write comments, and assign performance evaluation ratings. The individual Board member ratings are then tallied and averaged by the Steering Committee in order to prepare the General Manager's evaluation. 5.4 The Board is expected to discuss the draft performance review with the General Manager in an appraisal interview. Any disagreements between the General Manager and the Board regarding goals, workplans or measures should be resolved at the time these criteria are established. 5.5 The General Manager is expected to participate in the evaluation process by considering goals and accomplishments, and by suggesting areas for self- improvement. Additional comments may be provided using the Annual Self Planner, or Mid-Year Planner which is provided in advance to the Board members. 6.0 How does this program relate to the Performance Appraisal System used for the EMT and Mid-Management? 6.1 The EMT and Mid-Management positions are tied to the same evaluation program. The EMT and Mid-Management use a Self-Planner to initiate the appraisal process and appraise their direct reports and consider strategic goals and budget priorities to recommend ideas. The General Manager also completes the EMT performance appraisal with the same considerations in mind. 6.2 The General Manager can then set future goals for the management team based upon Board input and review the past year's results in June. The General Manager is able to utilize this information in July in evaluating the results and recommending goals to the Board for the next performance year. Other ideas have already been generated earlier in the prior fiscal year given the strategic planning and budget planning process. DRAFT GM Performance Appraisal Guidelines Page 5 24 7.0 What are the major steps in the Performance Appraisal Calendar in evaluating the General Manager? 7.1 The General Manager's Evaluation is typically initiated in July with the General Manager providing information to the Board using the Annual Self Planner so the evaluation can be completed in August. The Mid-Year Planner is completed by the General Manager in January of each year so that any changes in General Manager's goals and priorities can be considered, and the GM and Board can discuss the General Manager's progress. 7.2 If the General Manager is on a leave of absence at the time of the regularly scheduled review or interim review, the evaluation will be deferred by or about the same number of days. Stop Parties Involved and Major Activities 1 GM submits Annual Self Planner to Board members by July 15. 2 Steering Committee Liaison submits blank Management Performance Appraisal Forms to Board members. 3 Board members complete draft Management Appraisals and submit to Steering Committee liaison by July 31° 4 Steering Committee compiles performance appraisal results and submits to Board members by August 15 , using Compensation Matrix to determine eligibility for compensation Increase. 5 Copy of Performance Appraisal and Compensation Matrix submitted to General Mane er at least five days in advance of performance appraisal interview. 5 Board conducts performance appraisal interview with General Manager to discuss findings and recommendations for the new performance year prior to August 31; final comments incorporated, copies distributed, including copy to personnel file. Pay increases or lump sum bonuses, if provided, effective with first payroll period In September, retroactive of base a increases to Jul 1". DRAFT GM Performance Appraisal Guidelines Page G 25 8.0 How is the GM appraisal completed and scored? 8.1 The overall rating consists of one of the five following rating categories: 'Does Not Meet Job Expectations, Marginally Meets Job Expectations, Meets Job Expectations, Exceeds Job Expectations, and Far Exceeds Job Expectations'. If a competency or goal cannot be rated, a score would not be shown in the calculation of the overall rating score. 8.2 Board members must rate each competency and goal. Specific and edited comments are required by the supervisor for all rated competencies and goals, regardless of the performance rating that is assigned. 8.3 Corrective action steps will be established if the General Manager receives any collectve Board rating of 'Marginally Meets Job Expectations' or 'Does Not Meet Job Expectations' on a rating criteria when the appraisal is completed and scored. At a minimum, a follow-up interim evaluation (e.g., one month, two months, or three months later) will be conducted if the General Manager receives a rating of'Does Not Meet Job Expectations'. 8.4 The goals will have already been weighted for the current evaluation period by the Board. The total overall performance rating will normally be computed for the General Manager using the weighted average of the individual goals. The weighted average mean will be computed by taking the sum of the adjusted scores (weighting x rating)/number of rating categories. 8.5 For the General Manager, the Goals Section is weighted at 75% of the total overall performance rating, and the Competencies Section is weighted at 25% this total overall performance rating. DRAFT GM Performance Appraisal Guidelines Page 7 26 9.0 How is the Compensation Matrix in determining the General Manager's eligibility for increased compensation, and what other steps are involved? 9.1 The Compensation Matrix is designed to provide an objective and convenient means of determining whether the General Manager is eligible for increased compensation, and the actual amount. 9.2 An annual market compensation survey is completed of the District's labor market agencies for the General Manager's position in July to establish the market rate and projected salary increases for the General Manager in relation to the Board's overall performance rating. 9.3 The General Manager's current salary rate is shown in relation to the market average using the Compensation Matrix. The Board may elect to have staff or an independent consultant conduct the market analysis and/or update the matrix for the Board's use each year. 9.4 Completed performance evaluations for Management positions must be sent to the Human Resources Department following their review at the department level. Secondarily, the performance evaluations will be reviewed by the General Manager, with the original being maintained in the employee's personnel file as the official record. Pay increases for eligible employees will not be instituted without an approved performance appraisal. Examples are provided in the matrix so the Steering Committee will understand how it works during the regular performance review. 10.0 What other administrative features are involved in evaluating the General Manager, updating the Compensation Matrix, and maintaining these files? 10.1 The Steering Committee will be responsible for designating a member who will be responsible for submitting the blank General Manager Performance Appraisal electronically to the Board members, collecting the responses, and tabulating the results using the GM Performance Evaluation Scoring Worksheet. In many Boards, this is typically the Chair, Vice Chair, or member with Human Resources experience. 10.2 General Manager pay increases or lump sum bonuses are typically retroactive to the first payroll period in July. DRAFT GM Performance Appraisal Guidelines Page 8 27 Exh/b/t 1- Setting Goals: Generating Ideas SAMPLE GOALS FOR A LOCAL CITY MANAGER Priority Element/Criteria Random Order Milestone/Parties Evaluated 1.Stalling: Maintain a ratio of staff positions to City Actual Staff Payroll Does Not operating budget that does not exceed x$for FY2004-2005. Exceed x$Per Employee Based On Year-End Expenditure Recap. 2.Short-Term Budget Controls: Actual Power Plant budget Actual Staff Payroll Does Not expenditures=or<than planned budget expenditures for Exceed x$Per Operating FY2004-2005. Expenditure Recap At Year-End. 3.Compliance: Zero audit deficiencies or violations cited and Department head YTD activity filed by state and federal agencies regulating the City during report for regulatory compliance FY2004-2005. activity. 4.Short-Term Budget Controls: Obtain at least x$or more Budget recap of grant fund new grant revenues for Council priority programs for FY2004- revenues by department and 2005. program submitted on March 31, 2005. 5.Short-Term Budget Controls:Actual total operating Budget recap comparisons:4 expenditures=or<planned operating expenditures in budget quarter of 2003-2004 plus first plan for salary&benefits, maintenance&operations, capital three quarters of 2004-2005. outlays, and allocations. S. Long-Term Financing: Increase General Fund Reserves Audit report of General Fund by approximately$500,000 during FY 2004-2005,without Reserves by Director of Finance sacrificing any of the Council's priorities established in the submitted on March 31,2005. performance goals. 7.Land Use Planning: Draft New Zoning Ordinance on Council Action Vote by schedule subject to approval by Council. December 31,2004 based on staff report- It. Conservation: Complete DSF Habitat Conservation Plan Council Action Vole by and/or file strategy plan for legislative changesAitigation with December 31,2004 based on regards to the DSF and USFWS. staff report. 9. City Infrastructure: Completion of re-organization plan Tasks completed in accordance and City Hall Rennovation Plan. with schedule and within budget Ian submitted to Council. 10. Utility Management: City's solid waste contract or cable Contract renewed on schedule television franchise contract renewed under basic service and within budgetary and service provisions established by the City Council and within a total guidelines. fee Increase of<8%. 28 i I Exhbitm Settina Priorities and Goals: Generating Ideas 10 EXAMPLES OF PALO ALTO COUNCIL WORK PLAN PRIORITIES AT THE CITY MANAGER LEVEL The top 5 Council Priorities are: Long-Term Finances, Infrastructure, Land Use Planning, Alternative Transportation/Traffic Calming, and Affordable/Attainable Housing. The City Council has established a fairly large number of Work Plan goals for 2002-2003 in concert with these priorities. For performance evaluation purposes, it is recommended that a smaller number of examples be used that have high impact and are difficult to attain. Priority Element/Criteria Random Order Milestone/Parties Evaluated 1. Land Use Planning: Housing Element Update presented August 31, 2002 and to Planning and Transportation Commission for review& October 31, 2002 comment and then to City Council for review and adoption. Planning 2.Infrastructure: Complete final design for Children's November 30, 2002 and Library,final design for Mitchell Park Library and Community February 28,2003 and July 31, Center and begin construction of Children's Library on 2003: Public Works and schedule and within established budget. Commun Services 3. Lona-Ranee Financing: Present plan fee package for September 30,2002 Team: City November, 2002 Bond Measure financing plan and Attorney and ASO Community Outreach Program; Council approves action. 4. Infrastructure: Develop Storm Drain measure for property October 31, 2002 and owner election given recommendations for storm drain December 31,2002 and funding from BRC, Council approval of storm drainage March 31,2003 City Attorney and funding Ian; and completion of election. City Clerk 5.Affordable/Aftalnable Housing: Opportunity Center December 31,2002 Housing Development Proposal presented to Planning And April 30, 2003 Commission/Architectural Review Board and to City Council P&CE/Planning for action in Spring, 2003 6.Infrastructure: Homer Avenue Caltrain Undercrossing: Grant Funding: secure 80%or more of required grant funding,2003(action February 28, 2003 subject to the approval of the P&TC; project submitted within Initiation of Construction: Council guidelines. April 30, 2003 City Attorney and Infrastructure Team Z. Lona-Range Finances: Complete Phase II of December 31,2002 and June Development Impact Fee program for City Wide 30,2003 City Attorney, Planning Transportation by finishing Nexus Transportation Model and and ASO. Circulation Improvement Plan on time and within budget. 8. Infrastructure: Streamline Contracts Administration October 31,2002: includes City process and present recommendations to City Council for Attorney and Infrastructure Team approval. S.Alternative Tranaoortationrrraffic Calming: Complete July 30, 2002 and Bicycle Master Plan and California Avenue Bicycle and September 30, 2002 Pedestrian Under Crossing Conceptual Plan/Feasibility Study P& CE/Planning,Transportation on schedule and within bud et. with VrA, and JPB 10. Land Use Planning: Drag New Zoning Ordinance and January 31, 2003 and March 31, Complete New Zoning Ordinance on schedule and approved 2003 P&CE/Planning&City by Council. Manager&City Attorney 2 29 Exhibit 3: Auditing Programs- Examples From A Sample City: Sample Ideas-Council Priorities: Numbers/Dates Are For Illustration Only 1. Present independent analysis of City's Long-Term Financial Plan for review by Finance Committee by mo/dy/yr and within budget. 2.Achieve minimum Sales Tax Audit Recoveries at an annualized rate of$250,000 for FY 2004-2005. 3. Complete independent audit of effectiveness of City's Code Enforcement Program to Policy and Services Committee by mo/dy/yr; implement 80% or more of auditor recommendations by 06130/05. 4. Finish assessment of Utility Risk Management Procedures for review and approval by Utilities Advisory Commission and Finance Committee by mo/dytyr. 5. Provide timely and accurate advice to other CAOs regarding internal procedures and controls as shown by customer satisfaction scorecard. 6. Complete audit of 06/30/05 City Financial Statement on time and within budget. 7. Finish independent study of Infrastructure Contract Processing Times with CltyWorks Contract Streamlining Project Team by mo/dy/yr; reduce average processing time for qualified contractors by x days by 06/30/05. 8. Complete reviews of Financial Procedures and Controls for designated departments by 09130/05. 9. Provide Quarterly Status Reports and Annual Audit Plan on schedule and in accordance with Council expectations regarding format and commentary. 3 30 � � �� ---------------------------- ---------------------------- �o 00 0-0oo��ao 00000 00 000000�a m m 00000��a0000000�0000000000mmm 00000000000000000000000�ommm 00 000��a000��oo�oo on�00000 m m m 0000000��000000��0000000mmm o��000000��000000��000000 mmm 0 000��00��0000�0��0000�oo m�m o�00000000�0000000000�000m�o 00 00000��0 0�000��a��o 000 0o m nc�m 0000000000000�00000�oo�oom�m ---------------------------- 00000000000000000000000000mo ---------------------------- ---------------------------- 00000000000000�0000000000m�m 0000000-000000-0000000000mm� 00000000000�000000-000000m�o �0000000000000�0000—0000�au�m -:-. - , - -• - 0000�a000000000000000�0000mmm ---------------------------- 000000000O000000o0o00O0000m0 ---------------------------- 0000000000000�000000�a000—mao 0000000000000000000000000�ao . �000000000�a�—oo�a�a000000000ao 0000000000000000�000000000ao ---------------------------- STEERING COMMITTEE Meeting Date To ad.of Mr. 6128106 AGENDA REPORT item Number Item Number 8(b) Orange County Sanitation District FROM: James D. Ruth, Interim General Manager Originator: Gail Garrett, Committee Secretary SUBJECT: July 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 July. 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 July: OMITS Committee: None PDC Committee: 1. Ratify Change Order No. 3 for Contract No. 2-41-4, Santa Ana River Interceptor, 2005 Emergency Repairs from 10,000 cfs Release 2. Ratify Change Order No. 1 for Job No. P1-82, Activated Sludge Plant Rehabilitation 3. Ratify Change Order No. 9 for Job No. P2-47-3, Secondary Treatment Facilities Process Upgrades at Plant No. 2 4. Ratify Change Order No. 9 for Contract No. 7-36, Gisler-Redhill Trunk Improvements 5. Approve Amendment No. 1 to Agreement for Contract No. 5-50, Rocky Point Pump Station Replacement 6. Approve Amendment No. 1 to PSA for Contract No. 1-2-4, Bushard Trunk Sewer Rehabilitation 7. Approve Amendment No. 2 to PSA for Job No. 132-90, Trickling Filters at Plant No. 2 8. Approve Amendment No. 8 to PSA for Jab No. P1-37, Primary Clarifiers 16-31 and Related Facilities 32 9. Approve Amendment No. 3 to Service Contract for Job No. J-79, Air Quality Improvements 10. Approve Grant Funding for CCTV Inspections for Job No. J-73, Cooperative Project Grant Program FAHR Committee: 1. Consider Investment Policy 2. Consider Internal Audit 3. Consider ARBA Administration 4. Report on Insurance Overview 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 CEQA FINDINGS Not a project. ATTACHMENTS NA 99 A Weptu,u.dd.vsiemec Cp lleyQIJM k7067w e(b)eei 0 nA.is July er.dm),d« awed names Page 2 33 STEERING COMMITTEE Meeting Dale To ed.of Dir. 22206 AGENDA REPORT Item Number Item Number eat Orange County Sanitation District FROM: James D. Ruth, Interim General Manager Originator: Gail Garrett, 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 June 28, 2006 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 June 28, 2006 meeting: CONSENT CALENDAR 10. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: (a) Adopt Resolution No. OCSD 06-14, Establishing the Annual Appropriations Limit for Fiscal Year 2006-07, for the District in accordance with the Provisions of Division 9 of Title 1 of the California Government Code. END OF CONSENT CALENDAR 11. Consideration of items deleted from Consent Calendar, if any. COMMITTEE REPORTS AND RECOMMENDED ACTIONS 12. STEERING COMMITTEE a. Order draft Steering Committee Minutes for the meeting held on May 24, 2006, to be filed. 34 b. Review and consideration of agenda items considered by the Steering Committee re the June 28, 2006 meeting. C. Consideration of items deleted from Steering 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 regular meeting held on May 24 2006, to be filed. b. Ratify Change Order No. 27 to Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37, with Margate Construction, authorizing an addition of$314,921, increasing the total contract amount to $72,676,520. C. Ratify Change Order No. 1 to Rehabilitation of the 14" Street Pump Station, Contract No. 5-51, and Rehabilitation of the "A" Street Pump Station, Contract No. 5-52, with Kiewit Pacific Company, authorizing an addition of$141,364 and 113 calendar days, increasing the total contract amount to $11,839,144. d. Ratify Change Order No. 8 to Gisler-Redhill Trunk Improvements, Reach "A", Contract No. 7-36; Orange Trunk Improvements, Contract No. 7-39; Gisler-Redhill/North Trunk Improvements, Contract No. 741; and City of Tustin Project Nos. 6106 and 6151, with ARB, Inc., authorizing an addition of$497,394 and nine calendar days, increasing the total contract amount to $20,891,680. e. Ratify Change Order No. 7 to Trickling Filter Rehabilitation and New Clarifiers, Job No. P1-76, with J.R. Filanc Construction Company, Inc., authorizing an addition of$281,732, increasing the total contract amount to $34,991,510. f. Ratify Change Order No. 13 to Effluent Pump Station Annex, Job No. J- 77, with J.F. Shea Construction, Inc., authorizing an additional amount of $65,276 and 50 calendar days, increasing the total contract amount to $44,597,334. g. Item removed by staff. h. Ratify Change Order No. 1 to Bushard Trunk Sewer Rehabilitation Pipe Procurement, Job No. I-24P, with Ameron International, authorizing an addition of$184,948 and 15 calendar days, increasing the total contract amount to $7,884,725. C Vlttumonb wIE Sn"n0aLLmoLL"W SCI4n0a\iempttery InIM"M Fbf\OLg98 WS&60�<I� \I PR'I.,J.-Bo"r4 Re—d .20*8 Page 2 35 / I. Approve Amendment No. 2 to Professional Services Agreements with Berryman & Henigar; Brinderson; HDR (CGvL) Engineers; Dudek& Associates, Inc.; Jacobson Helgoth Consultants, Inc.; Lee & Ro, Inc.; RMS Engineering & Design, Inc.; South Coast Systems, Inc.; SPEC Services, Inc.; and Washington Group International for services related to Facilities Engineering projects, in amounts not to exceed $200,000 for each agreement extension for a total amount not to exceed $2,000,000. Non-Consent Calendar j. Consideration of items deleted from PDC Consent Calendar, if any. 14. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR Consent Calendar a. Order draft Finance, Administration and Human Resources Committee Minutes for the Benefits Workshop held on May 18, 2006 and the regular meeting held June 14, 2006 to be filed. b. Adopt Resolution No. 06-15, amending Resolution No. OCSD 98-33, amending Human Resources Policies and Procedures Manual. C. Renew the District's Boiler& Machinery Insurance Program for the period July 1, 2006 to June 30, 2007, in an amount not to exceed $25,387. d. Renew the District's Excess Workers' Compensation Insurance for the period July 1, 2006 through June 30, 2007, at a rate not to exceed $0.00399 of actual payroll. e. Renew the District's All-Risk Property and Flood Insurance Program for the period July 1, 2006 through June 30, 2007, in an amount not to exceed $777,833. f. Renew the District's Excess General Liability Insurance Program for the period July 1, 2006 through June 30, 2007, in an amount not to exceed $391,233. Non-Consent Calendar g. Approve FY 2006/07 and 2007/08 Proposed Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY 2006-07 and 2007- 08, as follows: c?Ra .W Wlne.UarvnLLaal�..T.mpmmy 1.MWOWa19 W a N la J..&e,bv Wc.Ox R..;..a: elzom Page 3 36 2006-07 2007-08 Net Operations, Maintenance &Working Capdal$129,054,210 $135,602,130 Worker's Compensation Self Insurance $526,200 $559,400 General Liability and Property Self-Insurance $1,766,100 $2,055,200 Net Capital Improvement Program $266,088,000 $338,818,000 Debt/COP Service $54,410,000 $65,462,000 i Other Requirements $4,499,800 $2,645,300 Total $456,344,310 $545,142,030 (Directors: You have been previously provided a copy of the proposed budget with your June committee packages. Please contact the Board Secretary should you require an additional copy.) h. Consideration of items deleted from FAHR Consent Calendar, if any. 15. LEGISLATIVE AFFAIRS COMMITTEE Legislative Affairs Consent Calendar a. Order Legislative Affairs Committee Minutes for the meeting held on June 13, 2006 to be filed. Non-Consent Calendar b. Consideration of items deleted from Legislative Affairs Consent Calendar, if any. 16. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar a. Order Joint Groundwater Replenishment System Steering Committee Minutes for the meeting held on May 8, 2006,to be filed. GWRSSC Non-Consent Calendar C. Consideration of items deleted from GWRSSC Consent Calendar, if any. NON-CONSENT CALENDAR 17. Receive and file Addendum No. 1 to the Final Subsequent Environmental Impact Report for the Secondary Treatment and Plant Improvement Project for project modifications to the 66kV Substation at Plant No. 1, Job No. P1-97, prepared by IPMC/CH2M Hill. C.bJ , S@r Sen::gPmo+ 15e1INZITwry ery Wd FIl LMBW 45 Ne)Ui dM2 M Jum�vOer do he R..:..a Wa Page 4 37 18. (1) Approve Plans and Specifications for Oil Well Excavation and Reabandonment, Contract No. P2-90A, on file at the office of the Board Secretary; (2) Approve Addenda Nos. 1, 2, and 3 to the plans and specifications; (3) Receive and file bid tabulation and recommendation; and, (4) Award a construction contract to J.F.Shea, Inc. for Contract No. P2-90A, Oil Well Excavation and Reabandonment, for an amount not to exceed $250,853. 19. (1) Approve the Amended and Restated Job No. 1-24 Reimbursement Agreement with the City of Huntington Beach, increasing the maximum allowable 24 hour period staffing costs from $2,645 to $3,050 but keeping unchanged the maximum total staffing costs at $238,000, in a form approved by General Counsel; (2) Approve a Real Property License Agreement with the Fountain Valley School District and the Huntington Beach Union High School District necessary for the location of a temporary fire station for the Huntington Beach Fire Department during construction of Bushard Trunk Sewer Rehabilitation, Job No. 1-24, in a form approved by General Counsel; and, (3) Approve an Indemnification Agreement with the Fountain Valley School District, the Huntington Beach Union High School District, and the City of Huntington Beach regarding the temporary fire station located on Fountain Valley School District real property, in a form approved by General Counsel. 20. Award a contract to CCG Faster Systems, Inc. for purchase and implementation of a Fleet Management Application, Specification No.CS-2005-215, in the amount of$125,500 and a contingency amount of$45,000 for a total amount not to exceed $170,500. 21. Adopt Resolution No. 06-16, Levying Assessment Installments In Lieu of the Payment of Sewer System Annexation Fees and Capital Facilities Capacity Charges Incidental to the Connection of Assessor's Parcel Nos. 502-353-05, 502-352-06, 502-353-01, 502-361-04, 502-362-06, 502-362-05, 502-362-07, 502-362-09, 502-362-08, and 502-362-11to the Sewer System. 22. Approve an agreement with the Irvine Community Development Company to retain and pay engineering and environmental consultants for an amount not to exceed $200,000 to provide engineering services relating to the SARI line shallow profile aftemative study and Mountain Park Sewer Line Connection, in a form approved by General Counsel. C Yhamem,vq Snirq`+eoKrcN Sevi,p,ITmewery MemH FM`9llt1Bl9 YB]BOS&cl litl d NL b Juro Bw,dm Jx.trx Page 5 38 23. Approve an agreement with the Santa Ana Regional Watershed Project Authority (SAWPA) allowing the purchase of four (4) million gallons per day of Treatment and Disposal Capacity rights at OCSD to be used for desalter brine discharge, for a total amount of$17,136,120 ($4,284,030/MGD), in a form approved by General Counsel. 24. Closed Session a. Convene in closed session, if necessary 1. Conference with Real Property Negotiators (Government Code Section 54956.8): One property: Property: 7311 Doig Drive, Garden Grove, CA Agency Negotiator: Terry B. Knapper, CB Richard Ellis Negotiating Parties: Bernard Alfs, Alfs Investment Group; Ryan Peterson, CB Richard Ellis Under Negotiation: Price, terms and conditions for the purchase and sale of subject property 2. Conference with General Counsel—Anticipated Litigation Possible initiation of litigation pursuant to subdivision (c) of Section 54956.9: (one case) 3. Conference with General Counsel — Existing Litigation (Subdivision (a) of Section 54956.9) Name of case: Traveler's Insurance v. Orange County Sanitation District, Orange County Superior Court Case No. 06CCO0086 b. Reconvene in regular session PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This Rem has been budgeted, but there are insufficient funds. ❑ This Rem has not been budgeted. ® Not applicable (information Rem) ADDITIONAL INFORMATION NA C Dar .s Se ,.,Tmm r,Irn.R.InCI W.2.W W,U. June Barbee a¢We eaose Page 6 39 ALTERNATIVES NA CEQA FINDINGS Not a project. ATTACHMENTS NA 99 C:\Ox Kla aW8 lnpa�w —M GWIWMTK ry MW FllmOUVMm WC)undM la June Wer"r W[tls Page 7 40 ORANGE COUNTY SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018