HomeMy WebLinkAbout2007-05 ADM MINUTES OF THE REGULAR MEETING OF
THE ADMINISTRATION COMMITTEE
Orange County Sanitation District
Wednesday, May 9,2007,AT 5:00 P.M.
A meeting of the Administration Committee of the Orange County Sanitation District was held on
May 9, 2007, at 5:00 p.m., in the Sanitation District's Administrative Office.
(1) The roll was called and a quorum declared present, as follows:
ADMINISTRATION COMMITTEE STAFF PRESENT:
MEMBERS: Jim Ruth, General Manager
DIRECTORS PRESENT: Bob Ghiralli, Assistant General Manager
Mark Waldman, Chair Lorenzo Tyner, Director of Finance and
Phil Luebben,Vice Chair Administrative Services
Steven Choi Jeff Reed, Human Resources and Employee
Bill Dalton Relations Manager
Jon Dumitru Mike White, Controller
Joy Neugebauer Lilia Kovac, Committee Secretary
Chris Norby Norbert Gaia
Ken Parker Randy Kleinman
Sal Tinajero Juanita Skillman
Jim Winder
Doug Davert, Board Vice Chair OTHERS PRESENT:
Jim Ferryman, Board Chair Brad Hogin, General Counsel
Don McLean, Driver-Alliance
DIRECTORS ABSENT:
Rich Freschi
Darryl Miller
(2) APPOINTMENT OF CHAIR PRO TEM H O og6ppppP�
No appointment was necessary. CpTpNI�� �,y SE-F 'j DIBTifICT
(3) PUBLIC COMMENTS
MAY 23 2007
There were no public comments. n
(4) REPORT OF THE COMMITTEE CHAIR BY.
Chair Waldman did not give a report.
Minutes of the Administration Committee
May 9,2007
Page 2
(5) REPORT OF THE GENERAL MANAGER
General Manager, Jim Ruth, did not give a report.
(6) REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES
Lorenzo Tyner, Director of Finance and Administration, reported that$95 million of Board-
approved debt was recently refinanced netting a savings of approximately$4.5 million.
(7) REPORT OF GENERAL COUNSEL
Brad Hogin, General Counsel, reported that the Travelers Insurance litigation has reached a
settlement amount that staff agreed to, and will be presented at the May Board meeting for
discussion and consideration.
(8) CONSENT CALENDAR ITEMS
Consideration of motion to approve all agenda items appearing on the Consent Calendar not
specifically removed from same, as follows:
a. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the April 11,2007
meeting of the Administration Committee.
b. ADM07-32 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board
of Directors to adopt Resolution No. OCSD 07-_,Adopting the Updated
Records Retention Schedule and Records Series Definitions,Authorizing
Destruction of Obsolete Records, and Repealing Resolution No. OCSD
06-08.
END OF CONSENT CALENDAR
(9) ACTION ITEMS
No hems were considered.
(10) INFORMATIONAL ITEMS
a. ADM07-33 Annual Renewal of the District's Major Insurance Programs for
FY 2007-08.
Mike White, Controller, introduced Don MacLean of Driver-Alliant
Insurance Services,who presented a summary of estimated insurance
quotes. These insurance quotes will be finalized and presented to the
Board of Directors for approval in June.
Minutes of the Administration Committee
May 9, 2007
Page 3
b. ADM07-34 FY 2007-08 District Budget
Lorenzo Tyner, Director of Finance and Administrative Services,briefly
presented the revenue summary as part of the development of the
2007/08 budget process. The budget will be presented to the Committee
and Board of Directors for approval in June.
(11) CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION
54957(b)(1). The Committee convened in Closed Session at 5:14 p.m. pursuant to
Government Code Section 54957. Confidential Minutes of the Closed Session held by
the Administration Committee have been prepared in accordance with California
Government Code Section 54957(b)(1),and are maintained by the Clerk of the Board in
the Official Book of Confidential Minutes of Board and Committee Closed Meetings.
RECONVENE IN REGULAR SESSION: The Committee reconvened in regular session
at 5:39 p.m.
(12) OTHER BUSINESS,COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY
There were none.
(13) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR
ACTION AND STAFF REPORT
There were none.
(14) FUTURE MEETING DATES
The next regular Administration Committee meeting is scheduled for June 13, 2007, at 5 p.m.
(15) ADJOURNMENT
The Chair declared the meeting adjourned at 5:40 p.m.
Submitted by:
PvO� —
Lilia Kovac`
Committee Secretary
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Distributed at the
Administration Committee
Meeting
OCSD
Property and Liability Insurance
2007
1. Excess Liability Insurance
Status in 2006-07. Recommendation for 2007-08:
Limits -$25 million Limits-$25 million
Deductible -$250,000 Deductible-$250,000
($500,000 for empl. practices) ($500,000 for empl. practices)
Carriers -"A+" and "A-" rated Carriers— both "A+" rated
Coverages: including Coverages: slightly broader
Public Officials liability in minor respects
Cost- $398,020 Cost-$367,366
Decrease in cost: 8%
2. Excess Workers Compensation Insurance
Status in 2006-07. Recommendation for 2007-08:
Limits-$200 million Limits-$200 million
Deductible-$500,000 Deductible- $500,000
Carrier—CSACEIAJPA Carrier—CSACEIAJPA
Coverages: including $5 million Coverages: same as in 2006-07
"Employers Liability"
Cost- $201,746 (estimated) Cost- $167,310 (estimated)
Decrease in cost: 17%
3. Property and Boiler& Machinery Insurance
Status in 2006-07: Recommendation for 2007-08:
Main Limits-$1 billion Main Limits- $1 billion
Main Deductible- $25,000 Main Deductible -$25,000
Carriers—those in Driver's Carriers: those in Driver's
"PEPIP" program "PEPIP" program
Coverages: excluding earthquake Coverages: same as in 2006-07
Cost- $803,221 Cost-$585,630
Decrease In cost: 27%.
4. Earthquake Insurance
Earthquake insurance continues to be unavailable at reasonable rates.
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 Administration Committee meeting to be held on
May 9, 2007, was duly posted for public inspection in the main lobby of the District's
offices on May 2, 2007,
IN WITNESS WHEREOF, I have hereunto set my hand this 2nd day of May,
2007.
%wt�
Penny M. K e, Clerk of the Board
Board of Directors
Orange County Sanitation District
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ADMINISTRATION COMMITTEE
MEETING DATES
Meeting Date Board Meeting Dates
May 9, 2007 May 23, 2007
June 13, 2007 June 27, 2007
July 11, 2007 *July 18, 2007
August— Dark August 22, 2007
September 12, 2007 September 26, 2007
October 10, 2007 October 24, 2007
November 14, 2007 November 28, 2007
December 12, 2007 *December 19, 2007
January 2008 — Dark January 23, 2008
February 13, 2008 February 27, 2008
March 12, 2008 March 26, 2008
April 9, 2008 April 23, 2008
*Meetings being held the third Wednesday of the month.
ROLL CALL
ADMINISTRATION COMMITTEE
Finance, Human Resources and Information Technology
Meeting Date: May 9, 2007 Time: 5:00 p.m.
Adjourn:
COMMITTEE MEMBERS (74)
Mark Waldman Chair
Phil Luebben ce Chair
Steven Choi
Bill Dalton
Jon Dumitru
Rich Freschi
Darryl Miller
Joy Neu ebauer
Chris Norb
Ken Parker
Sal Tinajero
Jim Winder
James M. Fe an Board Chair
Doug Davert Board Vice Chair
OTHERS
Brad Ho in, Generel Counsel
STAFF
Jim Ruth, General Manager
Nick Arhontes, Director of Operations
Bob Ghirelli, Assistant General Manager
Jim Herber , Director of Engineering
Ed Torres, Director of Technical Services
Lorenzo Tyner, Director of Finance and
Administrative Services
Lilia Kovac, Committee Secretary
Bret Colson, Public Information Manager
Jeff Reed, Human Resources and Employee _
Relations Mana er
Mike White, Controller
c: Lenora Crane
M:\dept*endMCommitteesWdmin Commlttee\0507\02.Roll Call,doc
AGENDA
REGULAR MEETING OF THE
ADMINISTRATION COMMITTEE
ORANGE COUNTY SANITATION DISTRICT
WEDNESDAY, MAY 9, 2007, AT 5:00 P.M.
ADMINISTRATIVE OFFICE
10844 Ellis Avenue
Fountain Valley, California 92708
www.ocsd.com
(1) DECLARATION OF QUORUM
(2) APPOINTMENT OF CHAIR PRO TEM, IF NECESSARY
(3) PUBLIC COMMENTS
(4) REPORT OF COMMITTEE CHAIR
(5) REPORT OF GENERAL MANAGER
(6) REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES
(7) REPORT OF GENERAL COUNSEL
(8) CONSENT CALENDAR ITEMS
Consideration of motion to approve all agenda items appearing on the Consent Calendar not
specifically removed from same, as follows:
a. Approve minutes of the April 11, 2007 meeting of the Administration Committee.
b. ADM07-32 Recommend to the Board of Directors to adopt Resolution No. OCSD 07-_,
Adopting the Updated Records Retention Schedule and Records Series
Definitions,Authorizing Destruction of Obsolete Records, and Repealing
Resolution No. OCSD 06-08. (Book Page 9)
END OF CONSENT CALENDAR
Book Page 1
May 9, 2007 Page 2
C. Consideration of items deleted from Consent Calendar, if any.
(9) ACTION ITEMS
(10) INFORMATIONAL ITEMS
a. ADM07-33 Annual Renewal of the District's Major Insurance Programs for FY 2007-GB
(Book Page 12)
b. ADM07-34 FY 2007-08 District Budget (Book Page 15)
(11) CLOSED SESSION
i During the course of conducting the business set forth on this agenda as a regular meeting of the Committee,
! the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, I
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 potertial litigation; (c)
employee actions or negotiations with employee representatives; or which are exempt from public disclosure
under the California Public Records Act, may be reviewed by the Committee during a permitted closed session
and are not available for public inspection. At such time as final actions are taken by the Committee on any of
! these subj a.the minutes will reflect all reguired disclosures of information. i
A. Convene in closed session.
1. Conference with designated representatives Jim Ruth, General Manager; Lorenzo
Tyner, Director of Finance and Administrative Services; Jeff Reed, Human
Resources and Employee Relations Manager; and Paul Loehr, Human Resources
Supervisor, re Meet and Confer Update re contract negotiations for employees
represented by 1). Orange County Employees Association; 2). International Union
of Operating Engineers, Local 501, and 3). Supervisors, Professional Management
Team (part of Peace Officers Council of California) (Government Code Section
54957(b)(1).
B. Reconvene in regular session.
C. Consideration of action, if any, on matters considered in closed session.
(12) OTHER BUSINESS COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY
(13) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA
FOR ACTION AND STAFF REPORT
(14) FUTURE MEETING DATES
The next regular Administration Committee meeting is scheduled for June 13, 2007, at
5 p.m.
(15) ADJOURNMENT
Book Page 2
May 9, 2007 Page 3
Attends 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 Clerk of the Board.
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
pasting 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 Administration 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 Clerk of the
Board'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 Clerk of the Board ten days in advance of the Committee meeting.
Committee Chair: Mark Waldman (714)627-1969
Committee Secretary: Lilia Kovac (714)693-7124 Ikovac407ocsd.00m
General Manager: Jim Ruth (714)593-7110 inAhQDcsd.com
Assistant General Manager Bob Ghirelli (714)593-7400 rohirelligitocsd.com
Director of Finance and Lorenzo Tyner (714)593.7550 Itvner0vocscsd.com
Administrative Services
Human Resources and Employee Jeff Reed (714)593-7144 ireedgDocsd.00m
Relations Manager
H:Wep0agendMQomrnMeesAdmin CcmmMftW507W3.050907 Adminislradon Agenda.dm
Book Page 3
b
May 9, 2007
ADMINISTRATION COMMITTEE
AGENDA CALENDAR
Item Action
June 2007/08 Budget Action
June Excess General Liability Insurance Action
June All Risk Property and Flood Insurance Action
June Excess Workers' Compensation Action
June Boiler& Machinery Insurance Action
Book Page 4
MINUTES OF THE REGULAR MEETING OF
THE ADMINISTRATION COMMITTEE
Orange County Sanitation District
Wednesday, April 11,2007,AT 5:00 P.M.
A meeting of the Administration Committee of the Orange County Sanitation District was held on
April 11, 2007, at 5:00 p.m., in the Sanitation Districts Administrative Office.
(1) The roll was called and a quorum declared present, as follows:
ADMINISTRATION COMMITTEE STAFF PRESENT:
MEMBERS: Jim Ruth, General Manager
DIRECTORS PRESENT: Bob Ghirelli,Assistant General Manager
Mark Waldman, Chair Lorenzo Tyner, Director of Finance and
Phil Luebben, Vice Chair Administrative Services
Steven Choi Jim Herberg, Director of Engineering
Jon Dumitru Jeff Reed, Human Resources and Employee
Darryl Miller Relations Manager
Joy Neugebauer Mike White, Controller
Chris Norby Lille Kovac, Committee Secretary
Ken Parker Rich Spencer
Sal Tinajero Angela Belt
Jim Winder Jim Burror
Doug Davert, Board Vice Chair Norbert Gaia
Bob Gaggle
DIRECTORS ABSENT: Randy Kleinman
Bill Dalton
Rich Freschi OTHERS PRESENT:
Jim Ferryman, Board Chair Brad Hogin, General Counsel
Don McLean, Driver-Alliance
Ed Soong, Public Resources Advisory Group
Toby Weissert, Carollo Engineering
Vicki West, Driver-Alliance
(2) APPOINTMENT OF CHAIR PRO TEM
No appointment was necessary.
(3) PUBLIC COMMENTS
There were no public comments.
(4) REPORT OF THE COMMITTEE CHAIR
Chair Waldman did not give a report.
Book Page 5
Minutes of the Administration Committee
April 11, 2007
Page 2
(5) REPORT OF THE GENERAL MANAGER
Assistant General Manager, Bob Ghirelli updated the committee on status of the North County
Yard and its occupancy timeline; and Jim Herberg, Director of Engineering, briefly reviewed the
Capital Improvement Projects for the 2007/08 fiscal year, as well as Engineering process
improvements.
(6) REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES
Lorenzo Tyner, Director of Finance and Administration, reported progress made in the insurance
rate quotation process for acquiring best competitive rates for Excess Workers' Compensation,
Excess Liability coverage, and Property coverage.
(7) REPORT OF GENERAL COUNSEL
Brad Hogin, General Counsel, reported that Kern County has filed a lawsuit against OCSD's
Board-approved biosolids addendum, which provides additional CEQA review of the Tule Ranch
operation for land application.
(8) CONSENT CALENDAR ITEMS
Consideration of motion to approve all agenda items appearing on the Consent Calendar not
specifically removed from same, as follows:
a. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the Marchl4, 2007
meeting of the Administration Committee.
END OF CONSENT CALENDAR
(9) ACTION ITEMS
a. ADM07-26 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board
of Directors to: (1)Adopt Resolution No. OCSD 07-_,Authorizing the
Execution and Delivery by the District of an Installment Purchase
Agreement, a Trust Agreement, an Escrow Agreement and a Continuing
Disclosure Agreement in connection with the execution and delivery of
Orange County Sanitation District Refunding Certificates of Participation,
Series 2007A,Authorizing the Execution and Delivery of such Certificates
Evidencing Principal in an Aggregate Amount of Not to Exceed
$315,000,000,Approving a Notice of Intention to Sell,Authorizing the
Distribution of an Official Notice Inviting Bids and an Official Statement in
Connection with the Offering and Sale of Such Certificates and
Authorizing the Execution of Necessary Documents and Certificates and
Related Actions.
(2) That the Orange County Sanitation District Financing Corporation
adopt Resolution No. FC-04,Authorizing the Execution and Delivery by
the Corporation of an Installment Purchase Agreement and a Trust
Agreement in connection'with the execution and delivery of Orange
Book Page 6
Minutes of the Administration Committee
April 11, 2007
Page 3
County Sanitation District Refunding Certificates of Participation. Series
2007A;Authorizing the Execution and Delivery of such Certificates
Evidencing Principal in an Aggregate Amount of Not to Exceed
$315,000,000 and;Authorizing the Execution of Necessary Documents
and Certificates and Related Actions.
b. ADM07-27 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board
of Directors to adopt Ordinance No. OCSD-32,An Ordinance of the Board
of Directors of Orange County Sanitation District Establishing Sanitary
Sewer Service Charges; Establishing Capital Facilities Capacity Charges;
Adopting Miscellaneous Charges and Fees Relating to Industrial Charges,
Source Control Permittees and Wastehaulers, and Repealing Ordinance
No. OCSD30B.
Directors requested that the agenda report be modified to include the
amount of the increase.
G. ADM07-28 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board
of Directors to adopt Ordinance No. OCSD-33,Adopting Fees, Revised
Procedures and Policies Concerning Annexation of Properties to the
District and Repealing Ordinance No. OCSD-29.
(10) INFORMATIONAL ITEMS
a. ADM07-29 2008-07 and 2007-08 District Budget Update.
Lorenzo Tyner, Director of Finance and Administrative Services, briefly
updated the Directors on the operating budget as expenses are assessed
and forecasted for the 2007/08 budget. The revenue budget will be
reviewed in May, and summary presentations will be presented to the
committees in June for adoption.
b. ADM07-30 2007/08 Benefits Program Renewal Costs
Rich Spencer, Human Resources Supervisor, reviewed the cost of the
employee benefits for the next fiscal year, and compared the costs to the
current year and two years prior.
C. ADM0731 Property Tax Credit Adjustments for Class I and Class II Permits
Controller, Mike White, briefly presented the adjustments to standardize
the permit user fees methodology for permittees beginning 2008109.
Book Page 7
Minutes of the Administration Committee
April 11, 2007
Page 4
(11) CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION
549571b)(1). The Committee convened in Closed Session at 6:45 p.m. pursuant to
Government Code Section 54957(b)(1). Confidential Minutes of the Closed Session held
by the Administration Committee have been prepared in accordance with California
Government Code Section 54957(b)(1),and are maintained by the Clerk of the Board in
the Official Book of Confidential Minutes of Board and Committee Closed Meetings.
RECONVENE IN REGULAR SESSION: The Committee reconvened in regular session
at 7:00 p.m.
(12) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY
Director Luebben thanked the Sanitation District for providing support to the City of Cypress
Arbor Day, and Mr. Ruth for being the guest speaker at the city council meeting.
(13) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR
ACTION AND STAFF REPORT
There were none.
(14) FUTURE MEETING DATES
The next regular Administration Committee meeting is scheduled for May 9, 2007, at 5 p.m.
(15) ADJOURNMENT
The Chair declared the meeting adjourned at 7:07 P.M.
Submitted by.
Lilia <ovac
Clerk of the Board
WdepMgenda\Commiftes,Admn Commidee104071041107 Adminis"bon Minuf .dm
Book Page 8
ADMINISTRATION COMMITTEE Meeting Date T•Bd.ofMr.
0s23107 05rz3107
AGENDA REPORT Item Number Item Number
_ nomo7a
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Robert Ghirelli, Assistant General Manager
SUBJECT: Update of the District's Records Management Policy and Procedures
GENERAL MANAGER'S RECOMMENDATION
Adopt Resolution No. OCSD 07- , adopting the Updated Records Management
Program and Procedures, Retention Schedule and Record Series Definitions for
the District's Records Management Program, and Authorizing Destruction of
Obsolete Records, and Repealing Resolution No. OCSD 06-08.
SUMMARY
The District's Records Management Program is updated annually to meet new statutory
regulations and better serve the operational needs of the District. This year's changes
focus on the following:
• Section 9, Records Hold and Release Policy and Procedures, is a new addition
to the Records Management Policies and Procedures. It further defines our Legal
Hold Policy to comply with the new Federal Rules of Civil Procedure which went
into effect 12/1/06.
• The updated Records Retention Schedule and Record Series Definitions include:
Coordination with Engineering's Master List of Files
Administrative changes of titles and divisions
Changes in division responsibilities and reporting structures
Requested changes in retention periods reflecting operational needs
PRIOR COMMITTEE/BOARD ACTIONS
The Records Management Program was originally approved by the Board in October,
2000. It is updated annually, the last update being Resolution No. OCSD 06-08 in April
2006.
ADDITIONAL INFORMATION
The District's Records Management Program is a dynamic program, which documents
how long to keep various types of information, as dictated by the legal, fiscal, audit or
operational needs of the District. As a public agency we have an obligation to
effectively manage and maintain the District's information, most of which is classified as
public information. These policies and procedures are reviewed on an annual basis and
the changes have been reviewed with and approved by General Counsel's office.
ATTACHMENTS
1. Proposed resolution
Book Page 9
RESOLUTION NO. OCSD 07-xx
ADOPTING THE UPDATED RECORDS MANAGEMENT
PROGRAM POLICIES AND PROCEDURES, RETENTION
SCHEDULE AND RECORD SERIES DEFINITIONS FOR THE
DISTRICT'S RECORDS MANAGEMENT PROGRAM, AND
AUTHORIZING DESTRUCTION OF OBSOLETE RECORDS, AND
REPEALING RESOLUTION NO. OCSD 06-08
A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE
COUNTY SANITATION DISTRICT ADOPTING THE NEW
RECORDS MANAGEMENT POLICY AND PROCEDURE # 9,
RECORDS HOLD AND RELEASE, UPDATED RETENTION
SCHEDULE AND RECORD SERIES DEFINITIONS, AND
AUTHORIZING DESTRUCTION OF OBSOLETE RECORDS, AND
REPEALING RESOLUTION NO. OCSD 06-08
WHEREAS, it is necessary to establish a policy to maintain a Records
Management Program ('Program') that provides for the identification, access,
and protection of all records generated or received by the District; and
WHEREAS, said Program ensures that all District records are created,
received, maintained, and destroyed in a cost-effective manner, in accordance
with operating requirements for District business and applicable statutes and
regulations; and
WHEREAS, the Board of Directors of District is authorized, by the
provisions of California Government Code Sections 60200 through 60204,
inclusive to destroy records under certain conditions; and
WHEREAS, it is desirable and appropriate to authorize the destruction of
records on a routine basis that have been retained for a certain period of time,
that are copies of originals on file with the District, or that have been preserved in
conformance with all applicable statutes.
NOW, THEREFORE, the Board of Directors of Orange County Sanitation
District,
DOES HEREBY RESOLVE, DETERMINE, AND ORDER:
1.1 Section 1: Adoption of new Records Hold and Release Policy
and Procedure (Section #9). The Board of Directors of the District hereby
adopts Section 9 of the Records Management Policy and Procedures
whereby a hold may be placed on the scheduled destruction of records
that are deemed relevant to foreseeable or pending litigation,
Book Page 10
governmental investigation, audit, special organizational requirements, or
other business needs not contemplated when the records were originally
scheduled for disposal.
Section 2: Adoption of Updated Records Retention Schedule and
Definitions of Record Series. The Board of Directors of the District hereby
adopts changes to the Records Retention Schedule, set forth in Appendix
"A" and "B" attached hereto and incorporated herein by reference.
Section 3: Authorization for Destruction of Records. The destruction of
certain records, papers, and documents is hereby authorized, pursuant to
California Government Code Sections 60200 at seq., after such records
have been retained for the minimum time set forth on the Records
Retention Schedule.
Section 4: Destruction of Records After Preservation. Any record not
expressly required by law to be filed and preserved, may be destroyed at
any time after it is preserved in conformance with the requirements of
California Government Code Section 60203.
Section 5: Destruction of Duplicates. Pursuant to California
Government Code Section 60200, any duplicate record, paper, or
document, the original or a permanent photographic copy of which is in
the files of any office or Department of the District, may be destroyed after
confirmation with Records Management that such original or permanent
Photographic copy remains on file in the District.
Section 6: Retention of Records Not Mentioned. All records, papers,
and documents not mentioned in this Resolution shall be retained
indefinitely.
Section 7: Resolution No. OCSD 06-08 is hereby repealed.
PASSED AND ADOPTED at a regular meeting held May 23, 2007.
Chair
ATTEST:
Clerk of the Board
Book Page I I
ADMINISTRATION COMMITTEE meeting Dd'e To Od.of Dlr.
s/9/o7
AGENDA REPORT Rem Number Item Number
ADM07-33
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: ANNUAL RENEWAL OF THE DISTRICT'S MAJOR INSURANCE
PROGRAMS FOR FY 2007-08
GENERAL MANAGER'S RECOMMENDATION
Informational item.
SUMMARY
The District budget provides funds for the renewal of the following four major
insurances:
1) Excess General Liability Insurance
2) Excess Workers' Compensation
3) All-Risk Property and Flood insurance
4) Boiler& Machinery insurance
These policy renewals are scheduled to be presented to the Committee in May, for
discussion and consideration, and in June for approval. The District's Insurance Broker
of Record will be in attendance at the May Committee Meeting to provide a status report
and preliminary quotations.
PRIOR COMMITTEE/BOARD ACTIONS
The Board last approved renewal of the above four policies for the period July 1,2006
through June 30, 2007, at the June 2006 Board meeting.
ADDITIONAL INFORMATION
1) Excess General Liability Insurance Program
The District's Excess General Liability Insurance Program is currently provided through
the California Municipal Excess Liability Program ("CAMEL") and its new sister program,
the Alliant National Municipal Liability Program ("ANIMAL"). The District has
participated in the CAMEL program since FY 1996-97. The District's broker is gathering
quotes from a variety of other insurance markets as well, and expects to have them in
hand by early May 2007.
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This program currently provides the District with a $25 million policy of comprehensive
coverage for municipal liability, bodily injury and property damage, and personal injury.
The program was structured to also include Employment Practices, and Public Officials
Errors & Omissions coverage. The $25 million coverage is per occurrence, with a self-
insured deductible of$250,000 per occurrence. Since 1997, the Employment Practices
portion of coverage was enhanced from a $2 million sub-limit, to the full $25 million
policy limit.
The actual insurance coverage currently consists of two separate layers. The first layer
is the "Basic" $10 million program with self-insured retention of$250,000. The second
layer consists of$15 million of coverage in excess of the first layer of$10 million.
2) Excess Workers' Compensation Insurance
The District's Excess Workers' Compensation insurance coverage is with the California
State Association of Counties Excess Insurance Authority ("CSAC EIA"). This is the
fourth year the District has participated in this program or its predecessor. The
coverage expires on June 30, 2007. The District's Excess Workers' Compensation
Program currently provides coverage to $200 million with a self-insured retention (SIR),
or deductible of$500,000.
In addition, Driver Alliant will report on quotes from a variety of other insurance carriers.
The District's use of Excess Workers' Compensation insurance dates back to 1989-90.
At that time, the Fiscal Policy Committee approved a self-insured retention (SIR), or
deductible, of$250,000, for such coverage.
Due to the hardening of the workers' compensation market, this deductible was raised
to $500,000 beginning in FY 2002-03 through a policy with Employers Reinsurance
Corporation (ERC) that provided coverage to $25 million with a self-insured retention
(SIR), or deductible of$500,000.
Staff has reviewed the District's most recent five-year workers' compensation loss
history with Cambridge Integrated Services Group, the District's third-party workers'
compensation administrator, and has verified that the District has not incurred a loss
which exceeded the $500,000 SIR. Staff is seeking workers' compensation insurance
renewal with coverages and deductibles at the current levels.
Some additional risk is associated with the CSAC EIA joint powers authority in that a
premium surcharge can be assessed to individual members based on an unusually
large number of losses occurring outside of the actuarial evaluation estimates.
However, historically the CSAC EIA premiums for excess workers compensation have
been so much less than competing quotes that even if there were a surcharge, the cost
might still continue to be cheaper.
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3) All-Risk Property and Flood Insurance
The District's All-Risk Property and Flood Insurance Program ("Property Insurance")
expires June 30, 2007, and is now up for renewal for FY 2007-08. The All-Risk
insurance program provides for comprehensive coverage for the District's real and
personal property regarding virtually all perils including fire, flood, and business
interruption.
The District previously carried earthquake insurance as part of its Property Insurance,
but in the last few years earthquake insurance has been impossible to obtain or not
cost-effective. Currently, the District has earthquake insurance only in connection with
some of its buildings under construction.
The District's current Property Insurance limits are $1 billion for most perils other than
flood and earthquakes, and $175 million for flood, with many sub-limits for various
situations. In order to reach $1 billion in limits, the District's broker had to arrange for
nearly a dozen different layers of insurers. The Self-Insured Retention ("SIR") is
$25,000 per occurrence for most types of losses.
For nine consecutive years, the District's Property Insurance has been with a
nationwide joint purchase property insurance program called Public Entity Property
Insurance Program (PEPIP); one of the world's largest property programs. It is
important to note that this joint purchase property insurance program offers the
purchasing power of numerous large public entities without the pooling or sharing of
coverages or losses.
The District's broker has also approached a variety of independent carriers seeking
alternative quotes for 2007-08. The broker is also acquiring quotes for Earthquake
Insurance, and will know by May 9, 2007 if the quotes are cost-effective.
4) Boiler& Machinery insurance
Staff recommends the annual renewal of Boiler & Machinery insurance coverage for the
District covering the period from July 1, 2007 through June 30, 2008. The 'Boiler &
Machinery insurance program provides comprehensive coverage for loss caused by
machinery breakdown and explosion of steam boilers or other covered process
equipment, including damage to the equipment itself and damage to other property
caused by covered accident.
The District's current Boiler& Machinery insurance program provides coverage ($100
million per occurrence/with deductibles ranging from $25,000 to$350,000) for losses
caused by covered machinery breakdown (e.g., motors, steam turbines, digesters,
co-gen engines). Damages to the equipment, as well as damages to other property and
improvements caused by the machinery breakdown, are covered by the Boiler&
Machinery insurance. This program augments the District's all-risk property insurance
that covers perils such as fire and flood.
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ADMINISTRATION COMMITTEE Meeting Date To ad.of Dir.
05/09/07
AGENDA REPORT Ism Nombe Iem Numbe
pDM07-34
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: 2007-08 DISTRICT BUDGET
GENERAL MANAGER'S RECOMMENDATION
Informational item.
SUMMARY
For continued discussion of the update to the OCSD 2006-07 and 2007-08, detail of the
District's revenues has been included.
The budget vdll be presented for adoption at the June 27, 2007 Board meeting.
PRIOR COMMITTEEIBOARD ACTIONS
N/A
ADDITIONAL INFORMATION
N/A
ATTACHMENTS
1. 2007-08 Budget Development Revenue Detail
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Attachment1
2007-08 Budget Development Detail
Revenue Summary
Category 2005-06 2006-07 2007-08 2007-08
Actual Adopted Adopted Proposed
Beginning Balance $472.3 $519.4 $364.3 $334.9
Service Fees 137.0 154.5 170.1 164.6
User Fees 12.2 17.1 18.9 18.9
Capital Facilities Capacity Charges 15.6 11.1 11.7 11.7
Property Taxes 38.8 55.6 58.3 58.3
Interest 10.4 17.3 15.5 15.5
Other Revenue 25.8 41.1 30.2 38.4
Debt Proceeds 200.0 0.0 300.0 300.0
Total Revenue $912.1 $816.1 $969.0 $942.3
The District has a variety of revenue sources available for operating and capital expenses.
The major revenue sources are as follows:
• Beginning Balances
• General Sewer Service Fees
• Industrial Waste Permit User Fees
• Capital Facilities Capacity Charges (CFCC)
• Property Taxes
• Interest Earnings
• Other Miscellaneous Revenue
• Debt Proceeds
Beginning Balances-$335 million
As result of its Reserve and Investment Policies, the District will begin the year with an
estimated balance carried forward from the previous year.
General Service Fees-$165 million
User fees are ongoing fees for service paid by customers connected to the sewer system. A
property owner, or user, does not pay user fees until connected to the sewer system and
receiving services. Once connected, a user is responsible for his share of the system's costs,
both fixed and variable, in proportion to his demand on the system. These fees are for both
Single Family Residences (SFR)and Multiple Family Residences (MFR).
Sewer Service Fee Increases
The proposed 2007-08 rate is $182. This proposed rate is still well below the average annual
sewer rate of$337 currently being charged throughout the state according to a 2006 survey of
904 agencies encompassing all counties within California.
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Industrial Waste Permit User Fees—$19 million
Fees paid by large industrial and commercial properties owners connected to the sewer system.
These fees are for the owner's share of the system's costs, both fixed and variable, in
proportion to his demand on the system.
Since the inception of the Permit User Fee program in 1970, users of the District's system that
discharge high volumes or high strength wastewater have been required to obtain a discharge
permit and pay extra fees for the costs of service.
Capital Facilities Capacity Charges (CFCC)—$12 million
Capital Facilities Capacity Charge is a one-time, non-discriminatory charge imposed at the time
a building or structure is newly connected to the District's system, directly or indirectly, or an
existing structure or category of use is expanded or increased. This charge pays for District
facilities in existence at the time the charge is imposed, or to pay for new facilities to be
constructed in the future, that are of benefit to the property being charged.
Property Taxes—$58 million
The County is permitted by State law(Proposition 13)to levy taxes at 1%of full market value(at
time of purchase) and can increase the aased value no more than 2% per year. The District
receives a share of the basic levy proportionate to what was received in the 1976 to 1978 period
less $3.5 million, the amount that represents the State's permanent annual diversion from
special districts to school districts that began in 1992-93. The District's share of this revenue is
dedicated for the payment of debt service.
Interest Earnings—$15 million
Interest earnings are generated from the investment of accumulated reserves consisting of a
cash now/contingency, a capital improvement, a renewal/replacement, and a sell-insurance
reserve.
Other Revenue—$38 million
In 2007-08, OCSD anticipates receiving a one-time revenue of$17M from the sale of additional
capacity. Other revenue also includes $19 million from the Irvine Ranch Water District(IRWD)
for capital and equity charges and a $2 million reimbursement from other agencies as
reimbursement on capital projects.
Debt Proceeds—$300 million
Certificates of Participation (COPS)are the District primary mechanism for financing capital
projects. COPS are repayment obligations based on a lease or installment sale agreement.
COPS are not viewed as "debt" by the State of California, but rather a share in an installment
arrangement where the District serves as the purchaser.
In FY 2007-08 revenues will go to $607 million, an increase of$306 million.
The 2007-08 level will increase primarily due to the anticipated new debt issuance of$300
million and the $17 million that is expected to be generated from the increase of$16 in the
annual single family residence user fee, the basis for all sewer user fee rates.
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Debt Financing
Due to the magnitude of identified future annual capital and operations and maintenance
expenditures, it is necessary that the District utilize debt financing to meet its total obligations.
Debt financing allows the District to meet projected construction schedules while achieving the
lowest possible user fees, as well as long-term stability for the user fees.
Financing
The District uses long-term borrowing (Certificates of Participation (COP))for capital
improvements that cannot be financed from current revenue. Before any new debt is issued,
the impact of debt service payments on total annual fixed costs is analyzed. Debt financing of
$1.2 billion is forecasted over the next six years to assist in the funding of the $2 billion in capital
improvements required over the next ten years. No additional debt will be issued in 2006-07.
However, it will be necessary to issue$300 million in COPs in 2007-08.
Certificate of Participation (COP)
The primary debt mechanism used is Certificate of Participation (COP). COPS are repayment
obligations based on a lease or installment sale agreement. The COP structure was selected
over other structures because COPS are not viewed as debt by the State of California, as the
purchaser does not actually receive a"bond,"but rather a share in an installment sale
arrangement where the District serves as the purchaser. COPS can be issued with fixed or
variable interest rates.
Fixed-rate debt can be either traditional or synthetic in form:
• Fixed-Rate Debt traditionally has a final maturity between 20 and 30 years from the date of
issuance. Generally, principal is amortized annually. Principal maturing in early years
typically has a lower interest rate ("coupon")than later maturities. This structure typically
produces a level debt service.
• Synthetic Fixed-Rate Debt: Long-term, variable-rate debt can be issued and then the
interest component can be swapped to a fixed rate. This forth of fixed-rate debt achieves a
balance between short and long-term interest costs and is frequently a less expensive forth
of debt. In some markets, this form of fixed-rate debt is less expensive to issue than the
more traditional form of fired-rate debt described above.
Variable-rate debt can be traditional or synthetic:
• Variable-Rate Debt traditionally has either a long or short nominal maturity, but the
interest rate resets periodically. Typically, the intervals for interest rate resets are daily,
weekly or monthly, but any period is possible.
• Synthetic Variable-Rate Debt as described above for fixed-rate debt, variable-rate debt can
be created from a fixed-rate issue by means of a floating-rate swap.
The maximum level of variable rate obligations incurred by any District should not exceed the
level of invested reserves available to that District.
The District currently has outstanding synthetic fixed-rate and fixed-rate COPS of$397.7 million
and variable-rate COPS of$393.3 million, for a ratio of 50:50.
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The District Maintains its AA Rating
A "AA" Rating is one of the highest for a government agency. In order to maintain this rating,
the District adheres to its 2001 Debt Policy and coverage ratios requirements. This Board-
adopted policy serves as the agency's guide in the management of existing debt and in the
issuance of future debt.
OCSD Has No Legal Debt Limits.
The District does have contractual covenants within the existing COP agreements which require
minimum coverage ratios of 1.25. The minimum coverage ratio is the ratio of net annual
revenues available for debt service requirements to total annual debt service requirements for
all senior lien COP debt. The coverage ratio for senior lien COP debt is being proposed at 2.45
for FY 2007-08.
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Book Page 19
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, Califomia
92708-7018