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HomeMy WebLinkAbout03-09-2016 Administration Committee Agenda Orange County Sanitation District Wednesday, March 9, 2016 Regular Meeting of the F' 5:00 P.M. ADMINISTRATION Administration Building COMMITTEE Board Room 10844 Ellis Avenue Fountain Valley, CA 714 593-7433 AGENDA CALL TO ORDER: PLEDGE OF ALLEGIANCE: DECLARATION OF QUORUM: (Clerk of the Board) PUBLIC COMMENTS: If you wish to address the Board of Directors on any item, please complete a Speaker's Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you want to speak. Speakers will be recognized by the Chairman and are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: CONSENT CALENDAR: The Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be conserved in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve Minutes of the February 10, 2016, Administration Committee Meeting. ON09/16 Administration Committee Agenda Page 1 of 3 2. APPOINTING A CLERK OF THE BOARD PRO TEM TO THE BOARD OF DIRECTORS IN THE ABSENCE OF THE CLERK OF THE BOARD (Clerk of the Board) RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 16-XX entitled, "A Resolution of the Board of Directors of Orange County Sanitation District appointing a Clerk of the Board Pro Tern to the Board of Directors; and repealing Resolution No. OCSD 07-23." 3. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF FEBRUARY 2016 (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the report of the investment transactions for the month of February 2016. 4. DESIGNATION OF APPLICANT'S AGENT FOR DISASTER RELIEF (Bob Ghirelli) RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 16-XX, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District authorizing the General Manager or Designee to Execute State Office of Emergency Services and/or Federal Emergency Management Agency Documents and Relevant Permit Applications for Present and Future Disaster Relief Applications; and Repealing Resolution No. OCSD 11-03." INFORMATION ITEMS: 5. FY 2016-17 AND 2017-18 BUDGET UPDATE (Lorenzo Tyner) 6. ENVIRONMENTAL SERVICES DEPARTMENT OVERVIEW (Bob Ghirelli) 7. ENERGY EFFICIENCY AUDIT FINDINGS (Ed Torres) CLOSED SESSION: None. 0310911 6 Administration Committee Agenda Page 2 of 3 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY: ADJOURNMENT: The next Administration Committee meeting is scheduled for Wednesday, April 13, 2016 at 5:00 p.m. Accommodations for the Disabled: Meeting Rooms are 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)593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item,including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A.Lore Clerk of the Board (714)593-7433 klore(diocsd.com For any questions on the agenda, Committee members may contact staff at: General Manager James Herberg (714)593-7300 iherberofrpomd.com Assistant General Manager Bob Ghirelli (714)593-7400 rohirelli( ocsd.com Director of Finance and Lorenzo Tyner (714)593-7550 Itvnerrrpocsd.com Administrative Services Director of Human Resources Celia Chandler 714 593-7202 cchandler ocsd.com 03/09/16 Administration Committee Agenda Page 3 of 3 ITEM NO. 1 MINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, February 10, 2016, at 5:00 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Chair Curry on February 10, 2016, at 5:00 p.m., in the Administration Building of the Orange County Sanitation District. Director Greg Mills led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Keith Curry, Chair Jim Herberg, General Manager Lucille Kring, Vice-Chair Bob Ghirelli, Assistant General Manager Steven Choi Celia Chandler, Director of Human Resources Bob Ooten (Alternate) Rob Thompson, Director of Engineering Peter Kim Lorenzo Tyner, Director of Finance & Greg Mills Administrative Services Joy Neugebauer Kelly Lore, Clerk of the Board Teresa Smith Tina Knapp, Deputy Clerk of the Board Sal Tinajero Mike White, Controller John Nielsen, Board Chair Norbert Gaia Greg Sebourn, Board Vice-Chair Mark Manzo Damein Frabizio COMMITTEE MEMBERS ABSENT: Alfredo Garcia Jim Katapodis Glenn Parker OTHERS PRESENT: Kendra Carney, Associate General Counsel PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: Committee Chair Curry did not provide a report. REPORT OF GENERAL MANAGER: General Manager Jim Herberg reminded the Committee of the upcoming District holiday closures on Friday, February 12, 2016 (Lincoln's Birthday) and Monday, February 15, 2016 (Presidents' Day). MOM Administration Committee Minutes Page 1 of 6 REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services Lorenzo Tyner reported that in October 2015 a co-operative agreement was approved to allow for the purchase of approximately $500,000 of data recovery equipment. Two purchases were made, which between them exceeded $100,000. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED AND DULY CARRIED TO: Approve Corrected Minutes of the December 9, 2015 Administration Committee Meeting. AYES: Curry, Kim, Kring, Nielsen, Neugebauer, Ooten (Alternate), and Sebourn NOES: None ABSTENTIONS: Mills ABSENT: Choi, Katapodis, Parker, T. Smith, and Tinajero 2. COOPERATIVE PROCUREMENT WITH ADMIN MINNESOTA MATERIALS MANAGEMENT DIVISION (Lorenzo Tyner) MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Authorize a purchase order to procure information technology computer and peripheral equipment using the Admin Minnesota Materials Management Division contract releas, #C-1084(5) through the contract expiration date, December 31, 2016 for a total amount not to exceed $400,000, with four (4) one-year renewal options, in accordance with Ordinance OCSD-47, Section 2.03(B) Cooperative Purchases. AYES: Curry, Kim, Kring, Mills, Nielsen, Neugebauer, Ooten (Alternate), and Seboum NOES: None ABSTENTIONS: None ABSENT: Choi, Katapodis, Parker, T. Smith, and Tinajero 3. OUTSIDE ACTIVITIES — EXECUTIVE MANAGEMENT TEAM MEMBER (Celia Chandler) MOVED, SECONDED AND DULY CARRIED TO: Approve outside activities for one member of the District's Executive Management Team, in accordance with the employee's At-Will Employment Agreement. AYES: Curry, Kim, Kring, Mills, Nielsen, Neugebauer, Ooten (Alternate), and Seboum MOM Administration Committee Minutes Page 2 of NOES: None ABSTENTIONS: None ABSENT: Choi, Katapodis, Parker, T. Smith, and Tinajero 4. GENERAL MANAGER APPROVED PURCHASES (Lorenzo Tyner) MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file District purchases made under the General Manager's authority for the period of October 1, 2015 — December 31, 2015. AYES: Curry, Kim, Kring, Mills, Nielsen, Neugebauer, Ooten (Alternate), and Seboum NOES: None ABSTENTIONS: None ABSENT: Choi, Katapodis, Parker, T. Smith, and Tinajero 5. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF JANUARY 2016 (Lorenzo Tyner) MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the report of the investment transactions for the month of January 2016. AYES: Curry, Kring, Mills, Nielsen, Neugebauer, Ooten (Alternate), and Sebourn NOES: None ABSTENTIONS: Kim ABSENT: Choi, Katapodis, Parker, T. Smith, and Tinajero 6. CONSOLIDATED FINANCIAL REPORT 2ND QUARTER ENDING DECEMBER 31, 2015 (Lorenzo Tyner) MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file Orange County District Second Quarter Financial Report for the period ended December 31, 2015. AYES: Curry, Kim, Kring, Mills, Nielsen, Neugebauer, Ooten (Alternate), and Seboum NOES: None ABSTENTIONS: None ABSENT: Choi, Katapodis, Parker, T. Smith, and Tinajero 0&10116 Administration Committee Minutes Page 3 of 6 NON-CONSENT CALENDAR: Director of Finance and Administrative Services Lorenzo Tyner indicated that Item No. 7 pertains to refunding of existing debt, which, due to the current low interest rate environment, provides an opportunity for savings. Mr. Tyner introduced Controller Mike White who reported that the potential savings would total $19,000,000 or, as provided by Chair Curry, 8% savings of the total amount due. Director Teresa Smith arrived at 5:04 p.m. 7. WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2016A (Lorenzo Tyner) MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Adopt Resolution No. OCSD16-XX, 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 Wastewater Refunding Revenue Obligations, Series 2016A, authorizing the execution and delivery of such Revenue Obligations evidencing principal in an aggregate amount of not to exceed $163,000,000, 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 Revenue Obligations and authorizing the execution of necessary documents and related actions. MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Orange County Sanitation District Financing Corporation: B. That the Orange County Sanitation District Financing Corporation approve the documents supporting and authorizing the Revenue Obligations in an aggregate amount not to exceed $163,000,000. AYES: Curry, Kim, Kring, Mills, Nielsen, Neugebauer, Ooten (Alternate), and Seboum NOES: None ABSTENTIONS: T. Smith ABSENT: Choi, Katapodis, Parker, and Tinajero Director of Finance and Administrative Services Lorenzo Tyner introduced Controller Mike White who provided a PowerPoint presentation including review of the FY 2016-17 and FY 2017-18 budget development assumptions (specifically economics, revenue, and reserves); comparison of SFR rates; operating expenses; staffing levels; the Capital Improvement Program (CIP); debt financing; and a preliminary budget summary. MOM Administration Committee Minutes Page 4 of Director Tinajero and Director Choi arrived at 5:07 p.m. Mr. Tyner responded to questions about the surplus available and the possibility of labeling these funds as allocated for "future expenses". Mr. Tyner also answered questions regarding debt service and outstanding UAL paydown. General Manager Jim Herberg indicated the CIP expenditures for FY 16-17 are lower than what may be seen in two to three years as large projects will be upcoming to renew infrastructure that is nearing mid-life/end of life. Mr. Herberg also indicated that the draft budget information, when available, will further clarify expenditure of money. Director of Engineering Rob Thompson responded to questions regarding environmental requirements and the communication of these requirements by various regulatory agencies. Mr. Thompson indicated that there is good communication between agencies impacted by such changes and information is both shared and received. 8. CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR FOR PREPARATION OF THE FY 2016-17 AND FY 2017-18 TWO-YEAR BUDGET (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: Approve the FY 2016-17 and FY 2017-18 budget assumptions and direct staff to incorporate these parameters in the preparation of this two-year budget. AYES: Choi, Curry, Kim, Kring, Mills, Nielsen, Neugebauer, Ooten (Alternate), Sebourn, T. Smith, and Tinajero NOES: None ABSTENTIONS: None ABSENT: Katapodis and Parker INFORMATION ITEMS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY: None. MOM Administration Committee Minutes Page 5 of 6 ADJOURNMENT: Committee Chair Curry declared the meeting adjourned at 5:24 p.m. to the next regularly scheduled meeting of Wednesday, March 9, 2016 at 5:00 p.m. Submitted by: Tina Knapp Deputy Clerk of the Board MOM Administration Committee Minutes Page 6 of ADMINISTRATION COMMITTEE Meng D310 TOBE. Dir. 03/lti09/16 03/23/1Or6 AGENDA REPORT ItemNumber Item Number z Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: APPOINTING A CLERK OF THE BOARD PRO TEM TO THE BOARD OF DIRECTORS IN THE ABSENCE OF THE CLERK OF THE BOARD GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 16-XX entitled, "A Resolution of the Board of Directors of Orange County Sanitation District appointing a Clerk of the Board Pro Tem to the Board of Directors; and repealing Resolution No. OCSD 07-23." SUMMARY BACKGROUND In order to fulfill the complex administrative, technical, and programmatic duties and obligations related to the Clerk of the Board's office in her absence, it is necessary to appoint a Clerk of the Board Pro Tem to exercise such responsibilities during these periods of time. RELEVANT STANDARDS • Comply with transparency and communication requirements, including the Brown Act. • Resolution OCSD 15-27 - Board of Directors, Rules of Procedure, Conduct of Business for the District. • Timely release of information and response to information requests. PROBLEM A restructure in of the Clerk of the Board's office made the title of Associate Clerk of the Board obsolete as adopted by Resolution No. OCSD 07-23. PROPOSED SOLUTION A Deputy Clerk of the Board was hired on January 25, 2016. Staff recommends that the Board of Directors adopt the new Resolution to update the current titles and maintain the business standards and principles of the Clerk of the Board's office. Page 1 of 2 TIMING CONCERNS The change in position control has already taken place, and therefore should not wait until a future meeting. RAMIFICATIONS OF NOT TAKING ACTION Non-compliance with the Board of Directors policy. PRIOR COMMITTEE/BOARD ACTIONS November 2007 — Adopted Resolution No. OCSD 07-23 Appointing the Associate Clerk of the Board as the Clerk of the Board Pro Tem. BUDGET/PURCHASING ORDINANCE COMPLIANCE N/A ATTACHMENTS The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Proposed Resolution No. OCSD 16-XX Page 2 of 2 RESOLUTION NO. OCSD 16-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPOINTING A CLERK OF THE BOARD PRO TEM TO THE BOARD OF DIRECTORS; AND REPEALING RESOLUTION NO. OCSD 07-23 WHEREAS,the Office of the Clerk to the Board of Directors performs a wide variety of responsible, confidential, and complex administrative, technical, and programmatic duties for and on behalf of the District's Board of Directors and Management Staff, in accordance with established Sanitation District policies and procedures, and applicable State laws; and, WHEREAS, it is necessary that in order to fulfill the duties of the Office in the absence of the Clerk of the Board, a Clerk of the Board Pro Tem be appointed to exercise the duties of the Clerk of the Board. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: That the individual holding the position of Deputy Clerk of the Board is hereby appointed as Clerk of the Board Pro Tem of the Board of Directors. Section 2: That in the absence of the Clerk of the Board, the Clerk of the Board Pro Tem to the Board of Directors shall have the powers and authority to exercise the duties of the Clerk of the Board. Section 3: That Resolution No. OCSD 07-23 is hereby repealed. PASSED AND ADOPTED at a regular meeting of the Board of Directors held March 23, 2016. John Nielsen Chair ATTEST: Kelly A. Lore Clerk of the Board OCSD 16-XX-1 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 16-XX was passed and adopted at a regular meeting of said Board on the 23rd day of March, 2016, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 23rd day of March 2016. Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District OCSD 16-XX-2 ADMINISTRATION COMMITTEE Melting D310 TOBE.Or Dir. 03/09/16 03/23/16 AGENDA REPORT Item Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF FEBRUARY 2016 GENERAL MANAGER'S RECOMMENDATION Receive and file the Report of The Investment Transactions for the Month of February 2016. SUMMARY BACKGROUND The CA Government Code requires that a monthly report of investment transactions be provided to the legislative body. RELEVANT STANDARDS CA Government Code: Section 53607 PRIOR COMMITTEE/BOARD ACTIONS N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsci.com) with the complete agenda package: • Report on the Investment Transactions for the Month Ended February 29, 2016. (The monthly report of investment transactions for the month ended February 29, 2016 was not yet available at the time of agenda publication but will be supplied as supplemental immediately upon its receipt) Page 1 of 1 ADMINISTRATION COMMITTEE Melting D310 TOBE.Or Dir. 03/09/16 03/23/16 AGENDA REPORT ItemNumber Item Number a Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Bob Ghirelli, Assistant General Manager SUBJECT: DESIGNATION OF APPLICANT'S AGENT FOR DISASTER RELIEF GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 16-XX, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District authorizing the General Manager or Designee to Execute State Office of Emergency Services and/or Federal Emergency Management Agency Documents and Relevant Permit Applications for Present and Future Disaster Relief Applications; and Repealing Resolution No. OCSD 11-03:' SUMMARY BACKGROUND Situations which result in Orange County being declared a state or federal disaster area can offer the opportunity for the District to apply for State and Federal emergency grant funding to reimburse expenses for related repairs and activities. Such reimbursements are overseen by the California State Office of Emergency Services and/or the Federal Emergency Management Agency. RELEVANT STANDARDS • Government Code: P.L. 93-288 as Amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988 • California Disaster Assistance Act PROBLEM The current Resolution is outdated and required to be updated every 3 years. PROPOSED SOLUTION Staff seeks a Board resolution authorizing the General Manager or Designees to apply for funds on behalf of the District. This designation remains in effect for 3 years from the date of the resolution. Page 1 of 2 TIMING CONCERNS In qualifying emergency situations the District has applied for, and has been granted funds in the past. With this resolution in place staff can respond quickly to secure available funds should another emergency occur. RAMIFICATIONS OF NOT TAKING ACTION Should another qualifying emergency occur, without a current resolution in place the District may not be granted or able to secure available funds. PRIOR COMMITTEE/BOARD ACTIONS March 2011 - Adopted Resolution OCSD 11-03 Authorizing the General Manager or Designee to Execute State Office of Emergency Services and/or Federal Emergency Management Agency Documents and Relevant Permit Applications for Present and Future Disaster Relief Applications. January 1998 - Joint Boards of Directors Adopted Designation of Applicant's Agent Resolution for Non-State Agencies ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: • Proposed Resolution No. OCSD 16-XX • Designation of Applicant's Agent Resolution for Non-State Agencies (CAL OES 130) Page 2 of 2 RESOLUTION NO. OCSD 16-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT AUTHORIZING THE GENERAL MANAGER OR DESIGNEE TO EXECUTE STATE OFFICE OF EMERGENCY SERVICES AND/OR FEDERAL EMERGENCY MANAGEMENT AGENCY DOCUMENTS AND RELEVANT PERMIT APPLICATIONS FOR PRESENT AND FUTURE DISASTER RELIEF APPLICATIONS; AND REPEALING RESOLUTION NO. OCSD 11-03 WHEREAS, Orange County Sanitation District is a duly organized County Sanitation District existing pursuant to the County Sanitation District Act, California Health and Safety Code section 4700, et seq., providing for the ownership, operation, and maintenance of wastewater collection, treatment, and disposal facilities within Orange County, California; and WHEREAS, on January 28, 1998, the Joint Boards of Directors of the County Sanitation Districts of Orange County (CSDOC), predecessor to the Orange County Sanitation District(OCSD), adopted a State resolution entitled "Designation of Applicant's Agent Resolution for Non-State Agencies" authorizing the General Manager, the Director of Human Resources or the Manager of Safety and Emergency Response to execute and file documents to the Office of Emergency Services for the purposes of obtaining certain federal financial assistance under P.L. 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the Natural Disaster Assistance Act; and WHEREAS, on March 23, 2011, the Board of Directors of the Orange County Sanitation District, adopted Resolution OCSD 11-03 which authorized the General Manager or designee to execute State Office of Emergency Services and/or Federal Emergency Management Agency Documents and relevant permit applications for present and future disaster relief applications; and WHEREAS, California Emergency Management Agency (CaIEMA) has requested an updated Resolution from OCSD designating OCSD's agent(s) for the purpose of executing and filing documents for present and future disaster relief applications; and WHEREAS, the Board of Directors has considered the recommendation of staff to authorize the General Manager or Designees to sign FEMA/CalEMA applications, claims and other related documents for the purpose of obtaining certain federal assistance under OCSD 16-XX-1 P.L. 93-188 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act. NOW THEREFORE, the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE AND ORDER: 1. The General Manager or Designees are hereby designated as the agent for OCSD and authorized to sign FEMA/CalEMA application(s), claims and other related documents for the purpose of obtaining certain federal assistance under P.L. 93-188 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act. 2. Cal DES Form 130, the Designation of Applicant's Agent Resolution for Non-State Agencies (Exhibit "A") will be executed and submitted with Resolution No. OCSD 16-XX; and 3. Resolution No. OCSD 11-03 adopted by the Board of Directors of the Orange County Sanitation District on March 23, 2011, is hereby repealed in its entirety. PASSED AND ADOPTED at a regular meeting of the Board of Directors of the Orange County Sanitation District held March 23, 2016. John Nielsen Board Chair ATTEST: Kelly A. Lore Clerk of the Board OCSD 16-XX-2 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 16-XX was passed and adopted at a regular meeting of said Board on the 23rd day of March 2016, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 23rd day of March 2016. Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District OCSD 16-XX-3 STATE OF CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES Cal OES ID No: Cal OES 130 DESIGNATION OF APPLICANT'S AGENT RESOLUTION FOR NON-STATE AGENCIES BE IT RESOLVED BY THE Board of Directors OF THE Orange County Sanitation District (Governing Body) (Name of Applicant) THAT OCSD General Manager ,OR (Title of Authorized Agent) OCSD Assistant General Manager OR (Title of Authomad Agent) OCSD Director of Operations & Maintenance (Title of Authorized Agent) is hereby authorized to execute forandonbehalfofthe Orange County Sanitation District apublic entity (Name of Applicant) established under the laws of the State of California,this application and to file it with the California Governor's Office of Emergency Services for the purpose of obtaining certain federal financial assistance under Public Law 93-288 as amended by the Robert T.Stafford Disaster Refief and Emergency Assistance Act of 1988,and/or state financial assistance under the Celifomia Disaster Assistance Act. THAT the Orange County Sanitation District a public entity established under the laws of the State of California, (Name of Applicant) hereby authorizes its agents)to provide in the Governor's Office of Emergency Services for all matters pertaining to such state disaster assistance the assurances and agreements required. Please check the appropriate box below: JIThis is a universal resolution and is effective for all open and future disasters up to three(3)years following the date of approval below. This is a disaster specific resolution and is effective for only disaster number(s) Passed and approved this 23rd day of March ,2016 John Nielsen,Board Chair James Nerberg,General Manager CERTIFICATION I, Kelly A. Lore duly appointed and Clerk of the Board of (Name) (Tide) Orange County Sanitation District ,do hereby certify that the above is a true and correct copy ofa (Name of Applicant) Resolution passed and approved by the Board of Directors ofthe Orange County Sanitation District ((ioveming Body) (Name ol'Applicata) on the 23rd day of March 2016. Clerk of the Board (Signature) (ripe) Cal OES 130(Rev.9/13) Page 1 ADMINISTRATION COMMITTEE Melting D310 TOBE.Or Dir. 03/09/16 03/23/16 AGENDA REPORT ItemNumber Item Number s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance &Administrative Services SUBJECT: FY 2016-17 AND FY 2017-18 BUDGET UPDATE GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY BACKGROUND For continued discussion on the development of the District's Proposed FY 2016-17 and FY 2017-18 Budget, detail of the District's revenues has been provided below. The proposed budget will be presented for adoption at the June 22, 2016 Board meeting. Staff will make a brief presentation at the Committee meeting. RELEVANT STANDARDS Produce Operations and CIP budgets every two years with annual update. PROBLEM Lack of understanding of the District's resources, or revenues and reserves, makes it difficult to approve a budget that meets the current needs of the District, lays the groundwork for future budgets, and keeps the District in sound financial condition. PROPOSED SOLUTION Providing the Board of Directors with an understanding of the Districts resources will assist in the approval of the proposed two-year budget. TIMING CONCERNS The proposed two-year budget, effective July tat of this year, will be finalized and presented to the Board for adoption in June. Page 1 of 5 RAMIFICATIONS OF NOT TAKING ACTION Being an informational item, no action is requested at this time. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s)are available in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: FY 2016-18 Budget Development Revenue Detail Page 2 of 5 FY 2014-16 BUDGET DEVELOPMENT DETAIL Revenue Summary(in millions) Category 2015-16 2016-17 2017-18 Adopted Proposed Proposed Beginning Reserves $626.9 $592.0 $620.7 Revenues: Service Fees 294.1 299.6 2992 Permit User Fees 13.6 13.8 13.9 CFCC 11.0 9.0 9.6 Property Taxes 88.5 93.0 97.6 Interest 6.1 9.0 9.7 Other Revenue 21.5 16.4 12.3 Debt Proceeds 0.0 0.0 0.0 Total Revenue $434.8 $440.8 $442.3 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 2016.17 2017.18 General Service Fees— $299.6M $299.2M 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). Page 3 of 5 2016-17 2017.18 General Service Fees (cont'd) Sewer Service Fee Increases In March 2013, the Board approved a five-year rate schedule for single family residential rate (the underlying basis for all sewer rates) that began with FY 2013-14. After the first two years, the Board approved a reduction of the rate increase for the last three years in half to 1.2%. For FY 2016-17 and FY 2017-18, these rates were set at$327 and $331. These rates are still well below the average annual sewer rate of$475 currently being charged throughout the state according to a 2015 survey of 482 agencies encompassing all 58 counties within California. Industrial Waste Permit User Fees— $113.81111 $13.9M 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)— $9.OM $9.6M 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— $93.0M $97.61VI 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 assessed 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— $9.OM $9.7M Interest earnings are generated from the investment of accumulated reserves consisting of a cash flow/contingency, a capital improvement, a renewal/replacement, and a self- insurance reserve. Page 4 of 5 2014-15 2015.16 Other Revenue— $116.4M $12.3M Other revenue also includes $13.7 million and $8.9 from the Irvine Ranch Water District(IRW D)for capital, O&M, and solids charges and $2.7 million and $2.8 million for sewer services provided to the Santa Ana Watershed Protection Authority (SAWPA)for FY 2016-17 and 2017-18, respectively. Debt Proceeds— $O.OM $O.OM Certificates of Participation (COPS) are used, when needed, to assist user fees and accumulated reserves 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. Debt Financing Due to the magnitude of identified future annual capital and operations and maintenance expenditures, at times, 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 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. Over the past 10 years, $1.1 billion of new money debt financings have been completed to fund the $2 billion in capital improvements that have been required. No new debt issuances are currently planned as projected revenues and available reserves are believed to be sufficient to meet the capital improvement needs of approximately $268 million over the next two fiscal years. 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. The District Maintains Its AAA Rating The District maintains ratings of "AAA" from Standards and Poor and Fitch Ratings. A triple A rating is the highest obtainable for any governmental agency. In order to maintain this rating, the District adheres to its 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. Page 5 of 5 ADMINISTRATION COMMITTEE Meeting Dare To ad.ofDir. 03/09,16 — AGENDA REPORT Item Number Item Number 6 — Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Bob Ghirelli, Assistant General Manager SUBJECT: ENVIRONMENTAL SERVICES DEPARTMENT OVERVIEW GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY BACKGROUND Each month staff provides an informational presentation on topics of interest to the Board of Directors. This month's topic is an overview of the newly created Environmental Services Department. RELEVANT STANDARDS Maintain a culture of improving efficiency Build brand, trust, and support with policy makers and community leaders Anticipate and plan for future regulations and legal requirements 1, 5, 20 year planning horizons PRIOR COMMITTEE/BOARD ACTIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: N/A Page 1 of 1 ADMINISTRATION COMMITTEE Meeting Dare To ad.of DV 03/09,16 — AGENDA REPORTItem Number Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Ed Torres, Director of Operations and Maintenance SUBJECT: ENERGY EFFICIENCY AUDIT FINDINGS GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY BACKGROUND Staff will present an informational report on the findings of the Energy Efficiency Audit performed by The Energy Network. RELEVANT STANDARDS • Efficiency efforts reduce the cost to provide the current service level or standard. • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting. • Provide a safe and collegial workplace. PROBLEM N/A TIMING CONCERNS N/A RAMIFICATIONS OF NOT TAKING ACTION N/A PRIOR COMMITTEE/BOARD ACTIONS N/A Page 1 of 2 ADDITIONAL INFORMATION This item is in the General Manager's Work Plan under Operational Optimization. "Energy Efficiency— Evaluate the energy savings opportunities identified by The Energy Network (TEN). Present findings and implementation recommendations to the Board of Directors by March 2016." The consulting services were provided to OCSD at no cost through the California Public Utilities Commission (CPUC)and Southern California Edison (SCE). The consulting team is known as 'The Energy Network (TEN), and includes project managers, technical experts, construction management, and contractors. The team originally identified over 50 potential energy saving measures for consideration. The measures focused primarily on energy intensive processes, such as pumping and secondary treatment, and included efficiency upgrades of existing equipment as well as process changes. From the initial list, five items were selected for preliminary evaluation, and from that group,three items received detailed evaluation. The measure with the most promising efficiency improvement involves the replacement of existing lighting with LED lights. In addition to energy savings, this measure has the potential to reduce maintenance costs, and to improve worker safety. CEQA N/A BUDGET / PURCHASING ORDINANCE COMPLIANCE N/A ATTACHMENT N/A Page 2 of 2 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease FSSD Facilities Support Services Department gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) ICS Incident Command System IERP Integrated Emergency Control Plan LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District GOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration PCSA Professional Consultant Services Agreement POTW Publicly Owned Treatment Works ppm Parts per million PSA Professional Services Agreement RFP Request For Proposal Glossary of Terms and Abbreviations RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board SAW PA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation Activated-sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. Benthos — The community of organisms, such as sea stars, worms and shrimp, which live on, in, or near the seabed, also know as the benthic zone. Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Glossary of Terms and Abbreviations Certificate of Participation (COP) -A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Contaminants of Potential Concern (CPC) - Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (D!f) - the dilution at which the majority of the people detect the odor becomes the D(f for that air sample. Greenhouse gases - In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). Groundwater Replenishment (GWR) System - A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service (LOS)-Goals to support environmental and public expectations for performance. NOMA- N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) - An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume-A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works (POTW)- Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line - A regional brine line designed to convey 30 million gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer - Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) - Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment - Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge - Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)-The amount of solids floating and in suspension in wastewater. Glossary of Terms and Abbreviations Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed —A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.