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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 H:WepregendalCommitleesWEmm COmmitlm1060710SM7 P ini4fiw Mim.0oc 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 H:VEP'RGMO\150\151\BSIFORMS\AGENDACERTIFICATION-ADMIN.COMMITTEE.DOC ORANGE COUNTY SANITATION DISTRICT t) p1one1 NOTICE OF MEETING 014189e'2111 lee: "''11 H2413-`' ADMINISTRATION COMMITTEE wanv.amtl.wln Finance, Human Resources and Information Technology welllnp FO. an,PW7 91f) 92 FaunlJ2u d2 9121 °treat aa"" te: 444 a"a na""" ORANGE COUNTY SANITATION DISTRICT 92 fiwmr Vnl 7 I:a /99)r,19 reao WEDNESDAY, MAY 9, 2007 - 5:00 P.M. ABerlaee CW. DISTRICT'S ADMINISTRATIVE OFFICES Ananenn 10844 ELLIS AVENUE drae FOUNTAIN VALLEY, CALIFORNIA 92708 H.una ran W W W.00SD.COM ass framwm Uallay rvllertnr, Gvrhm daa FdmdriPrun &,a fi A regular meeting of the Administration Committee of the Orange Id Rrhrr. le mane County Sanitation District will be held at the above location, date wa amn,m,'e and time. Na,W hWae lbange IM At; !.erne Ana &al 9aerh kn i.mmn Villa I IA moaa. ffirh :aunty a Orange tnitery Olctricm I bn4. Mr.» Muru•a�I Water Districts Irwvr,; I{nm:h To maintain worlaclass leadership in wastewater and water resource management. •NI,�� a ��E ENNIP 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. x wgnY,gm,mcammYenwemn commmeewwwaa.cu,�ramoa me Rw,eon.aoo awe: re 103 Page 1 Book Page 12 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. x n.m.e: aJoaw Page 2 Book Page 13 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. JDR:LT:MW:RK:lc HVMWI,nft mmnTenVdnln Comet%»`AAM,-]J.LOnWn*6 Ins Rmwa,,.Cac „ pg 3 Page 3 Book Page 14 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 JDR:LT:lc x eea:�%w,,,.7em nco...,ft�w 7a Rae o Idw Page 1 Book Page 15 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. n:uroiiva®e. ,,,moo.wcm�wmmmoowm��a.n.�w mm�.ao� 01. Page 2 Book Page 16 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. HWap:WBmgeVmm�NeesWm'm Comn49ee`DSOTD)31.R.OY 1. uiroams Page 3 Rook Pape 17 1 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. �e.m•e.a.w„mm.a,na.,m co,•„m�msowrsarto..,,w nactez PeNME. O1gV� Page 4 Honk P.. 1 v I 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. nw.mwmw nw.umnm camv�.msn"rmaa.aa.n .o+.aaoc Page am,.e.o,ro+ae 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