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 Any items withdrawn from the Consent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.
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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.
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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
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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
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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.