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HomeMy WebLinkAbout03-12-2014 Administration Committee Agenda Orange County Sanitation District SANITATION DISTRICT Wednesday, March 12, 2014 Regular Meeting of the \ 5:30 P.M. Administration Committee 1 Administration Building Board Room 10844 Ellis Avenue fl� Fountain Valley, CA(714) 593-7130 AGENDA PLEDGE OF ALLEGIANCE: DECLARATION OF QUORUM: PUBLIC COMMENTS: If you wish to speak, please complete a Speaker's Form and give it to the Clerk of the Board. Speakers 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: 1. Approve Minutes of the February 19, 2014, Administration Committee Meeting. 2. Recommend to the Board of Directors to: Adopt Resolution No. OCSD 14-XX, adopting a Conflict of Interest Code which supersedes all prior Conflict of Interest Codes and amendments previously adopted. 3. Recommend to the Board of Directors to: Approve Service Contract to provide services for industrial hygiene, S-2013- 590BD for a one-year plus four optional renewals effective July 1, 2014, for an 03 V14 Administration Committee Agenda Page 1 of 3 amount not to exceed $500,000 with the following firm: Malcolm Pirnie/Arcadis. 4. Recommend to the Board of Directors to: Adopt Resolution No. OCSD 14-XX, A Resolution of the Board of Directors of the Orange County Sanitation District Adopting a Revised Policy Regarding Board of Directors' Expense Reimbursement and Meeting Attendance and Compensation and Repealing Resolution No. OCSD 06-11. NON-CONSENT CALENDAR: 5. Recommend to the Board of Directos to: A. Introduce Ordinance No. OCSD-XX, entitled "An Ordinance of the Board of Directors of Orange County Sanitation District Amending Ordinance No. OCSD-34 Pertaining to the Compensation of the Members of the board of Directors'; and B. Motion to read Ordinance No. OCSD-XX by title only and waive reading of said entire Ordinance on March 26, 2014; and C. Set April 23, 2014, as the date of the Public Hearing to hear protests and for the second reading and adoption of Ordinance No. OCSD-XX. D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. INFORMATION ITEMS: 6. Ocean Water Quality and Disinfection Program 7. FY 2014-15 and FY 2015-16 Budget Update CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Administration Committee, the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives;or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. Convene in closed session. M V14 Administration Committee Agenda Page 2 of 3 (1) CONFER WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representatives: Steve Filarsky, James Ruth, James Herberg, Robert Ghirelli, Jeff Reed, and Richard Spencer. Employee Organizations: 4 • Orange County Employees Association (OCEA); • International Union of Operating Engineers, Local 501; • Supervisor Group; and • Professional Group OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: The next Administration Committee meeting is scheduled for Wednesday, April 9, 2014 at 5:30 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)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Aaenda 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. 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. Maria E.Ayala Clerk of the Board (714)593-7130 mavalaRocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager James Herberg (714)593-7300 iherbemrrpomd.com Assistant General Manager Bob Ghirelli (714)593-7400 rohirelliamsd.com Director of Finance and Lorenzo Tyner (714)593-7550 Itvner0omd.com Administrative Services Director of Human Resources Jeff Reed (714)593-7144 irsedfdocsd.com 03112114 Administration Committee Agenda Page 3 of 3 ITEM NO. 1 MINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, February 19, 2014, at 5:30 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was held on February 19, 2014, at 5:33 p.m., in the Sanitation District's Administration Building. Director Ferryman led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Brad Reese, Chair Jim Herberg, General Manager John Withers, Vice-Chair Lorenzo Tyner, Director of Finance David Benavides & Administrative Services Joe Carchio Jeff Reed, Director of Human Resources Steven Choi Nick Kanetis, Director of Engineering Tyler Diep Ed Torres, Director of Operations and James Ferryman Maintenance Gene Hernandez Nick Arhontes, Director of Facilities Peter Kim Support Services Prakash Narain Kelly Lore, Secretary Pro Tem Joe Shaw Jennifer Cabral Teresa Smith Rich Castillon Troy Edgar, Board Chair Norbert Gaia Al Garcia COMMITTEE MEMBERS ABSENT: Stephanie Good Janet Nguyen Dave Halverson Andrew Nau Joe Park OTHERS PRESENT: Omar Sandoval, Assistant General Counsel Steve Filarsky, Consultant Alternate Director Al Krippner (MCSD) PUBLIC COMMENTS: Chair Reese stated that there were two speakers who would be heard prior to Item 5. 02/19/2014 Administration Committee Minutes Page 1 d6 REPORT OF COMMITTEE CHAIR: Committee Chair Reese did not provide a report. REPORT OF GENERAL MANAGER: General Manager, Jim Herberg, did not provide a report. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Lorenzo Tyner, Director of Finance, did not provide a report. CONSENT CALENDAR: 1. MOVED, SECONDED, AND DULY CARRIED: Approve Minutes of the December 11, 2013 Administration Committee Meeting. AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers NOES: None ABSTENTIONS: None ABSENT: Nguyen 2. MOVED, SECONDED, AND DULY CARRIED: A. Approve an agreement for Deferred Compensation Program 457(b) Investment Consulting Services, Specification No. CS-2013-588, with SST Benefits Consulting for a term of three years, in an amount not to exceed $158,000 with the option to renew for one additional one-year period; and B. Approve a contingency of$15,800 (10%) AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers NOES: None ABSTENTIONS: None ABSENT: Nguyen 02/19/2014 Administration Committee Minutes Page 2 d 6 NON-CONSENT: 3. Director of Human Resources, Jeff Reed provided a brief presentation regarding this item and answered questions from the Committee. MOVED, SECONDED, AND DULY CARRIED: Authorize the General Manager to advertise a request for proposal and subsequently award a Consultant Services Agreement for an OCSD-wide classification and compensation study, for a total amount not to exceed $100,000. AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers NOES: None ABSTENTIONS: None ABSENT: Nguyen 4. Director of Director of Finance and Administrative Services, Lorenzo Tyner, provided a brief presentation regarding this item and answered questions from the Committee. MOVED, SECONDED, AND DULY CARRIED: A. Approve a Professional Services Agreement for Specification S-2013- 562BD with CiM Maintenance, Inc., for Enterprise Asset Management - Planning and Scheduling Software, for an amount not to exceed $147,297; and B. Approve a contingency in the amount of$14,730 (10%). AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers NOES: None ABSTENTIONS: None ABSENT: Nguyen 5. Chair Reese called upon the speakers who wished to address this item. Patrick Shields, Director of Operations, Irvine Ranch Water District (IRWD), stating that IRWD service area in contiguous to the transfer area, and that IRWD would be interested in meeting with staff to explore their agencies' possible 02/19/2014 Administration Committee Minutes Page 3 of 6 contribution to this transfer. Doug Davert, Director, East Orange County Water District (EOCWD), stated that EOCWD encompasses 90% of the transfer area and asked for the Board's support for this transfer. Nick Arhontes, Director of Facilities Support Services, gave an informative PowerPoint presentation on the transfer of sewers — history, process, and financial summary. Staff responded to various questions from the Committee. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: Authorize the General Manager to: A. Approve agreement with East Orange County Water District (EOCWD), to transfer ownership of local sewers in Service Area 7, and the appropriate reserve balances; and B. Provide EOCWD with technical and financial information to assist with its submittal of a reorganization application to the Orange County Local Area Formation Commission (OC LAFCO) to facilitate the transfer of ownership of the local sewers and agreed assets; and C. Draft and execute a letter of support to OC LAFCO in favor of EOCWD's reorganization application, subject to and contingent upon OC LAFCO's acceptance of the terms and conditions of transfer agreed upon by OCSD and EOCWD; and D. Approve an agreement with EOCWD to reimburse OCSD for staff support requested during an agreed transition period. AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Narain, Reese, Smith and Withers NOES: Carchio, Choi and Withers ABSTENTIONS: None ABSENT: Nguyen Director Narain left the meeting at 6:41 p.m. 02/19/2014 Administration Committee Minutes Page 4 d 6 6. Director of Director of Finance and Administrative Services, Lorenzo Tyner, provided a brief presentation regarding this item and answered questions from the Committee. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: A. Advertise a request for proposal for managing the District's Investment Program that includes making the investment decisions and execution of the investment transactions; and B. Advertise a request for proposal for an investment advisor to assist with the selection process of an investment management firm in an amount not to exceed $40,000. AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Reese, Smith and Withers NOES: None ABSTENTIONS: None ABSENT: Narain and Nguyen 7. Director of Director of Finance and Administrative Services, Lorenzo Tyner, and Controller, Mike White, provided a PowerPoint presentation regarding this item and answered questions from the Committee. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: Approve the budget assumptions to be used for the preparation of the FY 2014- 15 and FY 2015-16 two-year budget. AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman, Hernandez, Kim, Reese, Smith and Withers NOES: None ABSTENTIONS: None ABSENT: Narain and Nguyen Director Narain returned prior to Closed Session at 7:02 p.m. 02/19/2014 Administration Committee Minutes Page 5 of 6 CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS: 54957.6 The Board convened in closed session at 7:03 p.m. to discuss one item. Confidential Minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. RECONVENE IN REGULAR SESSION: The Board reconvened in regular session at 7:43 p.m. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Committee Chair Reese declared the meeting adjourned at 7:45 p.m. Submitted by: Kelly A. Lore, Secretary Pro Tem 02/19/2014 Administration Committee Minutes Page 6 d 6 ADMINISTRATION COMMITTEE Meeting Date TOBA.Of DIr. 03/12/14 03/26/14 AGENDA REPORT Item Number Item Number z Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Maria E. Ayala, Clerk of the Board SUBJECT: CONFLICT OF INTEREST CODE GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 14-XX, adopting a Conflict of Interest Code which supersedes all prior Conflict of Interest Codes and amendments previously adopted. SUMMARY The last biennial review — and formal amendment — to the District's Conflict of Interest Code was in March 2013. Although the Political Reform Act requires that every local agency review its Conflict of Interest Code biennially (which would bring forth the next amendment in 2015), staff is proposing a new amendment in order to reflect the current positions of those designated employees that are required to Tile statements of economic interests. Staff recommends that the Board adopt the 2014 Conflict of Interest Code to reflect the following changes: Addition and deletion of several positions If approved by the Board, the newly approved code will be forwarded to the County of Orange for approval. PRIOR COMMITTEE/BOARD ACTIONS March 2013 — Board amended the Conflict of Interest Code. ADDITIONAL INFORMATION N/A CEQA N/A Page 1 of 2 BUDGET/DELEGATION OF AUTHORITY LEVEL 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.coml with the complete agenda package: • Proposed Resolution No. OCSD 14-XX (2 Pages) • Conflict of Interest Code (6 pages) Page 2 of 2 Return to Mende Report RESOLUTION NO. OCSD 14-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING A CONFLICT OF INTEREST CODE WHICH SUPERSEDES ALL PRIOR CONFLICT OF INTEREST CODES AND AMENDMENTS PREVIOUSLY ADOPTED WHEREAS, the Political Reform Act of 1974, Government Code Section 81000 at. seq. ("the Act'), requires a local government agency to adopt a Conflict of Interest Code pursuant to the Act; and WHEREAS, the Orange County Sanitation District ('District') has previously adopted a Conflict of Interest Code and that Code now requires updating; and WHEREAS, amendments to the Act have in the past and foreseeably will in the future require conforming amendments to be made to the Conflict of Interest Code; and WHEREAS, the Fair Political Practices Commission has adopted a regulation, 2 California Code of Regulations, Section 18730, which contains terms for a standard model Conflict of Interest Code, which, together with amendments thereto, may be adopted by public agencies and incorporated by reference to save public agencies time and money by minimizing the actions required of such agencies to keep their codes in conformity with the Political Reform Act. NOW THEREFORE, BE IT RESOLVED: Section 1. The terms of 2 California Code of Regulations, Section 18730, any amendments to it duly adopted by the Fair Political Practices Commission, and all additional guidance by the Fair Political Practices Commission, are hereby incorporated by reference and, together with the 2014 Conflict of Interest Code for the Orange County Sanitation District, including Exhibits A and B in which OCSD-XX-1 Return to Mende Report members and employees are designated and disclosure categories are set forth, constitute the Conflict of Interest Code of the Orange County Sanitation District. Section 2. The provisions of all Conflict of Interest Codes and Amendments thereto previously adopted by the Orange County Sanitation District are hereby superseded. Section 3. The Filing Officer is hereby authorized to forward a copy of this Resolution to the Clerk of the Orange County Board of Supervisors for review and approval by the Orange County Board of Supervisors as required by California Government Code Section 87303. PASSED AND ADOPTED at a regular meeting held March 26, 2014. Troy Edgar, Chair, Orange County Sanitation District ATTEST: Maria Ayala, Clerk of the Board OCSD-XX-2 Return to Aaenda Report 2014 CONFLICT OF INTEREST CODE FOR THE ORANGE COUNTY SANITATION DISTRICT The Political Reform Act, Government Code Sections 81000, et seq., requires state and local government agencies to adopt and promulgate Conflict of Interest Codes. The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Regs. Section 18730) which contains the terms of a standard Conflict of Interest Code, which may be incorporated by reference in an agency's code. After public notice and hearing, it may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730, any amendments to it duly adopted by the Fair Political Practices Commission, and all additional guidance by the Fair Political Practices Commission, are hereby incorporated by reference. This regulation and the attached Appendix designating officials and employees and establishing disclosure categories, shall constitute the Conflict of Interest Code of the Orange County Sanitation District. Designated employees shall file statements of economic interests with the District's Clerk of the Board who will make the statements available for public inspection and reproduction (Government Code Section 87500). Upon receipt of the statements of the Orange County Sanitation District Board of Directors, Orange County Sanitation District Financing Corporation, General Manager, General Counsel, Assistant General Manager, Director of Engineering, Director of Finance & Administrative Services, Director of Operations and Maintenance, Director of Facility Support Services, Director of Human Resources, and the Clerk of the Board, the Filing Officer shall make and retain a copy and forward Page 1 of 6 9t3806.1 Return to Aaenda Report the original of these statements to the Clerk of the Orange County Board of Supervisors. Statements for all other designated employees will be retained by the Filing Officer. Page 2 of 6 9t3806.1 Return to Aaenda Report EXHIBIT A ORANGE COUNTY SANITATION DISTRICT LIST OF DESIGNATED POSITIONS CONFLICT OF INTEREST CODE Disclosure Designated Positions Categories General Manager OC-01 Orange County Sanitation District Financing Corporation Board of OC-01 Directors General Counsel OC-01 Assistant General Manager OC-01 Director of Engineering OC-41 Director of Facility Support Services OC-41 Director of Finance &Administrative Services OC-41 Director of Human Resources new OC41 Director of Operations and Maintenance OC-41 Principal Accountant OC-41 Capital Improvement Program Project Manager OC41 Treasurer of the Orange County Financing Corporation OC-41 Secretary of the Orange County Financing Corporation OC-05 Clerk of the Board OC-05 Controller OC-05 Engineering Manager OC-05 Environmental Compliance & Regulatory Affairs Manager OC-05 Facilities Manager OC-05 Public Affairs Manager OC-05 Environmental Laboratory& Ocean Monitoring Manager OC-05 Maintenance Manager OC-05 Operations Manager OC-05 Accounting Supervisor OC-05 Chief Plant Operator OC-05 Construction Inspection Supervisor OC-05 Senior Construction Inspection Supervisor OC-05 Engineering Supervisor OC-05 Maintenance Supervisor OC-05 Materials Control Supervisor OC-05 Operations Supervisor OC-05 Purchasing Supervisor OC-05 Contracts Su ervisor OC-OS Safety afet & Health Su ervisor OC-05 Page 3 of 6 9t3806.1 Return to Aaenda Report Buyer OC-05 Senior Buyer OC-05 Contracts Administrator OC-05 Senior Contracts Administrator OC-05 Principal Contracts Administrator OC-05 Senior Engineer OC-05 Contracts and Purchasing Manager OC-05 Information Technology Manager OC-08 Information Technology Systems & Operations Manager OC-08 Information Technology Supervisor new OC-08 Construction Inspector OC-10 Senior Construction Inspector OC-10 OC-44 *Human Resources Manager OC-11 Human Resources Supervisor OC-11 Risk Manager OC-12 Principal Financial Analyst OC-12 Lab oratory Su ervisor OC-21 Senior Scientist OC-21 Environmental Supervisor I OC-29 Consultant OC-30 *The following amendments are made: - Capital Improvement Program Project Management Supervisor- DELETED - Human Resources and Employee Relations Manager- DELETED - Human Resources Manager - ADDED Page 4 of 6 9t3806.1 Return to Mende Report EXHIBIT B ORANGE COUNTY SANITATION DISTRICT DISCLOSURE CATEGORIES CONFLICT OF INTEREST CODE Disclosure Category Disclosure Description OC-01 All interests in real property in Orange County or the District, as well as investments, business positions and sources of income (including gifts, loans and travel pa menu). OC-05 All investments in, business positions with and income (including gifts, loans and travel payments)from sources that provide services, supplies, materials, machinery, equipment (including training and consulting services) used by the department or District, as applicable. OC-08 All investments in, business positions with and income (including gifts, loans and travel payments)from sources that develop or provide computer hardware/software, voice data communications, or data processing goods, supplies, equipment, or services (including training and consulting services) used by the department or District, as applicable. OC-10 All investments in, business positions with and income (including gifts, loans and travel payments)from sources that are engaged in any real estate activity including, but not limited to real estate appraisal, development, construction, planning/architectural design, engineering, sales, brokerage, leasing, lending, insurance, rights of way, and/or studies; and/or property or facilities management/maintenance/custodial and utility services as used by the department or provides capital for the purchase of property used or sold by Orange County or the District. OC-11 All interests in real property in Orange County or located entirely or partly within District boundaries, as well as investments in, business positions with and income (including gifts, loans and travel payments)from sources that are engaged in the supply of equipment related to (i) recruitment, employment search & marketing, classification, training, or negotiation withpersonnel; ii employee benefits; and iii health and welfare benefits. OC-12 All interests in real property in Orange County, as well as investments in, business positions with and income (including gifts, loans and travel payments)from sources that invest funds or engage in the business of insurance including, but not limited to insurance companies, carriers, holding companies, underwriters, brokers, solicitors, agents, adjusters, claims mangers and actuaries; from financial institutions including but not limited to, banks, savings & loan associations and credit unions or sources that have filed a claim, or have a claim pending, against Orange County. Page 5 d 6 9t3806.1 Return to Aaenda Report EXHIBIT B ORANGE COUNTY SANITATION DISTRICT DISCLOSURE CATEGORIES CONFLICT OF INTEREST CODE Disclosure Cate go Disclosure Description OC-21 All investments in, business positions with and income (including gifts, loans and travel payments)from sources that provide laboratory or chemical — related goods, supplies, equipment, or services (including training and consulting services) . OC-29 All investments in, business positions with and income (including gifts, loans and travel payments)from sources that are subject to inspection or re ulation b the de artment. OC-30 Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest category in the code subject to the following limitation: The Department Head/Director/General Manager/Superintendant/etc. may determine that a particular consultant, although a "designated position," is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure required. The determination of disclosure is a public record and shall be filed with the Form 700 and retained by the Filing Officer for public inspection. OC41 All interests in real property in Orange County or the District, as applicable, as well as investments in, business positions with and income (including gifts, loans and travel payments)from sources that provide services, supplies, materials, machinery, vehicles, or equipment (including training and consulting services) used by the department or District, as applicable. Page 6 of 6 9t3806.1 ADMINISTRATIVE COMMITTEE Neethg Dare TOBA. f Dir. 03/12/14 0 I 3/2614 AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Administrative Services SUBJECT: INDUSTRIAL HYGIENE SERVICES GENERAL MANAGER'S RECOMMENDATION Approve Service Contract to provide services for industrial hygiene, S-2013-59OBD for a one-year plus four optional renewals effective July 1, 2014, for an amount not to exceed $500,000 with the following firm: Malcolm Pirnie/Arcadis SUMMARY OCSD has had blanket agreement with an industrial hygiene service company to conduct employee chemical exposure monitoring, lead surveys, and asbestos surveys. The current agreement did not cover providing industrial hygiene services for OCSD CIP projects, which is needed due to the rehabilitation projects OCSD is performing. PRIOR COMMITTEE/BOARD ACTIONS None. ADDITIONAL INFORMATION OCSD uses the below listed procurement methods: Notice Inviting Bids: A written description that completely specifies what OCSD wants and no negotiations are necessary or permitted. Award is made solely on the basis of the lowest cost. Usually used for the purchase of supplies and equipment. Request for Proposal: The needs of OCSD may not be completely clear, negotiations may be necessary, and/or cost is just one of several criteria necessary to make a decision. This procurement involves the Request for Proposal method. Page 1 of 3 Request for Proposal: The RFP, which outlined the Consultant's Scope of Work and criteria required for this project, was advertised on October 30, 2013, in the Orange County Register and on PlanetBids. Furthermore, an email notification was sent to 34 firms registered in the Sanitation District vendor database. As a result, six proposals were received on December 3, 2013, from the following fines: Malcolm Pirnie/ARCADIS Bureau Veritas North America, Inc. ATC Group Holdings Stearns, Conrad, and Schmidt Consulting ENVIRON International Corporation The Converse Professional Group A Staff Evaluation Committee, consisting of four representatives from Administrative Services and Engineering reviewed each of the proposals and conducted interviews with the top ranked firms in accordance with the evaluation process set forth in the Orange County Sanitation District Ordinance No. OCSD-44 and the evaluation criteria stated in the RFP. A representative from Purchasing participated in the evaluation process as a non-voting member. The proposals were evaluated according to the following criteria: Evaluation Criteria Weigh In Propose Staffing and Project Organization 35% Qualification of Firm 30% Work Plan 15% Cost Evaluation 20% After reviewing and scoring the six proposals, the Consultant firms were ranked according to the scores of the evaluators. The Evaluation Committee is recommending Malcom Pirnie/Arcadia as the top ranked firm(s): Consultant Rankin Malcolm Pirnie/ARCADIS 1 Bureau Veritas North America, Inc. 2 ATC Group Holdings 3 Stearns, Conrad, and Schmidt Consulting 4 ENVIRON International Corporation 5 The Converse Professional Group 6 All proposals were accompanied by a sealed fee proposal. The fee proposals were not opened until after the evaluation and the recommended firms were selected in accordance with Orange County Sanitation District Ordinance No. OCSD-44. Page 2 of 3 CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This Service Agreement complies with the authority levels of the Sanitation District's Delegation of Authority. These funds are included in the individual budgets that require these services. Date of Approval Contract Amount Contingency 03/26/14 $500,000 N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsc.com) with the complete agenda package: Draft Service Agreement (14 Pages) LT:WB/jmf Page 3 of 3 Return to Mende Report SERVICE CONTRACT Industrial Hygiene Services Specification No. S-2013.59OBD THIS CONTRACT is made and entered into as of the date fully executed below by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708-7018 (hereinafter referred to as "OCSD") and Comoanv Name with a principal business at address _ (hereinafter referred to as "Contractor") collectively referred to as the"Parties". WITNESSETH WHEREAS, OCSD desires to retain the service I Contr* for Industrial Hygiene Servi "Services"; and WHEREAS, OCSD has choserWtraelO�to corMt Services in accordanc an County Sanitation District Ordinance No. OCSD-44; and WHEREAS, on the Board of Directloo s of OCSD, by minute order, authorized execution of this Contract between OCSD and Cgnt�Etor; and WHEREAS, Contractor' is qualified by virtue of�Experience, training, and education and expertise to accomplish such Services, NOW THEREFORE, in consideration of the promiseso:tWualbenefits exchanged between the Parties, it is mutually agreedis follows: 1. Introduction 1.1 This Contract and all exhibits hereto (called the "Contract') is made by OCSD and Contractor. The Terms and Conditions herein exclusively govern the purchase of Services as described in the c cps of Work, attached hereto and incorporated herein by reference as sExh' A". 1. Exhibits to this Contract are incorporated by reference and made a part of this Contract as though fully set forth at length herein. Exhibits to this Contract are as follows in order of precedence: Exhibit"A" Scope of Work Exhibit"B" Exhibit"C" Exhibit"D" 1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects govern and control. 1.4 The provisions of this Contract may be amended or waived only by a writing executed by authorized representatives of both Parties hereto. 1.5 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any Paragraph or provision hereof. Orange County Sanitation District 1 of 7 Specification No. S-2013-59OBD DRAFT CONTRACT-DO NOT SUBMIT Return to Mends Report 1.6 The term "days", when used in the Contract, shall mean calendar days, unless otherwise noted as business days. 1.7 The term "hours", when used in this Contract, shall be as defined in Exhibit" 1.8 Contractor shall provide OCSD with all required premiums and/or overtime work at no charge beyond the price provided under"Compensation" below. 1.9 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Contractor as a result of work performed in anticipation of purchases of said services by OCSD. 2. Compensation Compensation for this project sh�not exceed the total amount of and 00/00 Dollars ($ ). �& $. Pa e,vmanie Pnvmentc Rhgll hat made ❑nnn annmvA by Or:SD Prnjent Manager, Wes Bauer or his designe of invoices submitted for woX completed as described in Exhibit "A". OCSD, at its sole discretion, shall be the determining party as to whether the tasks and deliverables have bee satisfactoni completed. 4. Invot 4.1 OCVP SD s p 1 3 days of completion and receip*d pro, D Project Manager of an it in ice, in a form acceptable to OCSD to enable audit of the charges thereon. Contract all not pay less than the prevailin we, if applicable. Invoices shall include the Purchase Order Number. Am le 5. Audit Rtptrts Contractor agrees that, during th#J of this Contract and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Contractor relating to the invoices submitted by Contractor pursuant to this Contract. 6. Invoices shall be emailed by Contractor to OCSD Accounts Payable at APStaff(@,OCSD.com and the Purchase Order number and "S-2013-590BD Industrial Hygiene Services" shall be referenced in the subject line. 7. Scope of Work Subject to the terms of this Contract, Contractor shall perform the Servir 'dentified in Exhibit "A" and . Contractor shall perform said Services in accord�R.ra with generally accepted industry and professional standards. 6. Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder can be made by OCSD at any time. All modifications must be made in writing and signed by both Parties. 9. Contract Term The Services provided under this Contract shall commence on the date of the Notice to Proceed and continue for a period of one year. 10. Renewals 10.1 OCSD may exercise the option to renew the Contract for up to four (4) one-year periods based upon the criteria set forth in the specifications, Exhibit "A", under the terms and conditions contained herein. OCSD shall make no obligation to renew nor give reason if it elects not to renew. Orange County Sanitation District 2 of 7 Specification No. S-2013-59OBD DRAFT CONTRACT-DO NOT SUBMIT Return to Mende Report 10.2 Renewals may be made through the OCSD Purchase Order Process. 11. Termination 11.1 OCSD reserves the right to terminate this Contract for its convenience, with or without cause, in whole or in part, at any time, by written notice from OCSD, (delivered by certified mail, return receipt requested) of intent to terminate. Upon receipt of a termination notice, Contractor shall immediately discontinue all work under this Contract (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay Contractor for work performed (cost and fee) to the date of termi.^.ation. Contractor expressly waives any claim to receive anticipated profits to be named during the uncompleted portion of this Contract. Such notice of termination shall terminate this Contract and release OCSD from any further fee, cost or claim hereunder by Contractor other than for work performed to the date of termination. 11.2 OCSD reserves the right to terminate this C�ct immediately upon OCSD's determination that Contractor is not Mee ing specification r irements, if the level of servic inadequate, or any other default of this�ntract. 11.3 OCSD may also immedi a Gel for defWft of this Contract in who i rt written notice to Contractor: , • if Contractor becomes insolvent o files a petition under tFjG Bankruptcy Act; or r� • if Contractor sells its business; or V , • if Contractor breaches any of the terms of this Contract; or • if total amount of compensation exceeds the amount authorized under this Contract. 11.4 All OCSD property in the possession or control of Contractor shall be returned by Contractor to OCSD upon demand, or at the termination of this Contract, whichever occurs first. 12. Insurance Contractor and all subcontractors shall purchase and maintain, throughout the life of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements (attached hereto and incorporated herein as Exhibit "). Contractor shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OCSD, nor shall Contractor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Contract. 13. Indemnification and Hold Harmless Provision Contractor agrees to save, indemnify, defend and hold harmless OCSD against any and all liability, claims, judgments, cost and demands, including demands arising from injuries or death of persons and damage to property, arising directly or indirectly out of the negligence or willful misconduct of Contractor, its employees or agents, in relation to the rendition of services pursuant to this Contract, except claims or litigations arising through the sole negligence or willful misconduct of OCSD. Contractor agrees to reimburse OCSD for any expenditure, including reasonable attorney's fees, OCSD may incur by reason of such matters, and, if requested by OCSD, will defend any such suits at the cost and expense of Contractor. 14. Safety and Human Resources (HR) Policies OCSD requires all contractors and service providers to follow and ensure their employees and all subcontractors follow all State and Federal regulations as well as OCSD requirements while working at OCSD locations. If during the course of a contract it is discovered that OCSD policies, safety manuals, or contracts do not comply with State or Federal regulations then the Contractor is required to follow the most stringent regulatory requirement at no cost to OCSD. Contractor and all their employees Orange County Sanitation District 3 of 7 Specification No. S-2013-59OBD DRAFT CONTRACT-DO NOT SUBMIT Return b Mende Report and subcontractors, shall adhere to all applicable OCSD Safety and Human Resources Policies found at: OCSD.com, "Doc Central" (bottom of page), under"Safety'. 15. Warranty 15.1 Manufacturer's standard warranty shall apply. All manufacturer warranties will begin at date of completion of this Contract. 15.2 Contractor's warranty: If, within the 12-month period following completion of its Services, OCSD informs Contractor that anv part of the Services fails to meet the standards required under this Contract, Contractor shall, within the time agreed to by OCSD and Contractor, take all such actions as are necessary to correct or complete the noted deficiency(ies). 16. Performance Time is of the essence performance of this Contract and the provisions hereof. 17. Force Majeure Neither party shall liable for delays caused by accident, flood, acts of God, fire, lnhnr tmi ihlp. war, AftC of gnvernmP_nt nr anv nther raime havnnd its r_.rintrol, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from th1w Contract. 18. Freight(F.O.B. Destination) Contractor assumes full respon4w&r all tran;� uon, transportation scheduling, packing, handling, insurance, and other i associated with delivery of all products deemed necessary under this Contract. 19. Familiarity with Work By executing this Contract, Contractor warrants that: 1) it has investigated the work to be performed; 2) it has investigated the site of the work and is aware of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the work under this Contract. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as Wresented by OCSD, it shall immediately inform OCSD of this and shall not proceed, except M Contractor's risk, until written instructions are received from OCSD. 20. Regulatory Requirements Contractor shall perform all work under this Contract in strict conformance with applicable federal, state, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and California Water Codes Division 2. 21. Licenses, Permits. Ordinances and Regulations Contractor represents and warrants to OCSD that it has obtained all licenses, permits, qualification and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by State, County, City and/or municipal laws, codes and/or tariffs that pertain to work performed under the terms of this Contract will be paid by Contractor. 22. Applicable Laws and Regulations Contractor shall comply with all applicable federal, state, and local laws, rules, and regulations. Contractor also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OCSD as a result of Contractor's noncompliance therewith. Any permission required by law to be included herein shall be deemed included as a part of this Contract whether or not specifically referenced. 23. Public Contracts Law OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime work in the locality in which the work is to Orange County Sanitation District 4 of 7 Specification No. S-2013-59OBD DRAFT CONTRACT-DO NOT SUBMIT Return b Mende Report be performed for each craft or type of work needed to execute this Contract. Contractor agrees that not less than said prevailing rates shall be paid to workers employed on this project as required by Labor Code Section 1774 of the State of California. 24. South Coast Air Quality Manaoement District's (SCAQMD) Requirements It is Contractor's responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All contract work practices, which may have associated emissions such as sandblasting, open field spray painting or demolition of ashestos containing rgmponents or Rtrurtures, shall comply with the appropriate rules and regulations of the SCAQMD. 25. Governing Law This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this C� or the perf�ance thereof. 26. Breach The waiver of either party of any breach or violation of, or default under, any provision of this Qnntrant, ghgll not he deemed a rnntiniiing waiver by siir_.h natty of any other provision or of any subsequent breach or violation Ahis Contract or default thereunder. A breach by Contractor to which OCSD does not object shall not operate as a waiver of OCSD rights to seek remedies available to it for any subsequent breach. 27. Reme "es In addition to other remedies available in law or equity, if the aLt-or fails to make delivery of the gov or Services or repudiates its obligations under thi tract, or if OCSD rejects the good o Services or revokes acceptance of the goods or Services, OCSD may (1) cancel the Contract; (2) recover whatever amount of the purchase price OCSD has paid, and/or (3) "cover' by purchasing, or contracting to purchase, substitute goods or Services for those due from Contractor. In the event OCSD elects to "cover" as described in (3), OCSD shall be entitled to recover from Contractor as damages the difference between the cost of the substitute goods or Services and the contract price, together with any incidental or consequential damages. 26. Dispute Resolution 28.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the d+4ute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of th§ dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS'), or any similar organization or entity conducting an alternate dispute resolution process. 28.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrators decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. Orange County Sanitation District 5 of 7 Specification No. S-2013-59OBD DRAFT CONTRACT-DO NOT SUBMIT Return b Mende Report 29. Attorney's Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 30. Survival The provisions of this Contract dealing with Payment, Warranty, and Forum for Enforcement, shall survive termination or expiration of this Contract. 31. Severability If anv section, subsection; or provision of this Contract, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Contract or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the eff�f such invalidity shall be to substantially frustrate the expectations of the Parties. . 32. Damage to OCSD's Property Any of OCSD's property damaged by Contractor, any subr_.nntrartnr5 or by thp. nergnnnPl of Qither will hp. Rllhjert to rp..nair or replacement by Contractor at no cost to OCSD. 33. Disclosure Contractor agrees not to disclose, to any third party, data or information generated from this project without the prior written consent from OCSD. 34. Limitations upon Subcontracting and Assignment Contractor shall not d egate any duties nor assign any rights under this Contract without the prior written consent of OCSD. Any such attempted delegation or assignment shall be vgid. 35. Independent Contractor It is that Contractor shall act and be an independent contractor and not an agent or employee CSD, and shall obtain no rights to any benefits which accrue to OCSD's employees. 36. Third Party Rights Nothing in this C ntract shall be construed to give any rights or benefits to anyone other than OCSD and Contractor. 37. Read and Understood By signing this Contract, Contractor represents that he has read and understood the terms and conditions of the Contract. 38. Authority to Execute The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound. 39. Entire Contract This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. Orange County Sanitation District 6 of 7 Specification No. S-2013-59OBD DRAFT CONTRACT-DO NOT SUBMIT Return to Mende Rom 40. Notices All notices under this Contract must be in writing. Written notice shall be sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. All notices shall be effective when first received at the following addresses: OCSD: Clarice M. Marcin Senior Contracts Administrator Orange Countv Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Contractor: Company ' -` IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused(this Contract to be si ned 4 th- uthorized representatives. ORANGE COUNTY SANI � � 1oil'_ Dated: By: hair Board of Directors Dated: Cl rk of the Board Date By: Contracts/Purchasing Manager COMPANY Dated: By: Print Name and Title of Officer IRS Employer's I.D. Number Orange County Sanitation Distract 7 of 7 Specification No. S-2013-59OBD DRAFT CONTRACT-DO NOT SUBMIT ADMINISTRATION COMMITTEE Neeting/14 Date T1.1 IDir. 03/123/26/14 AGENDA REPORT Item Number Item Number a Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Robert P. Ghirelli, Assistant General Manager SUBJECT: REVISED POLICY REGARDING BOARD OF DIRECTORS' EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE AND COMPENSATION GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 14-XX, A Resolution of the Board of Directors of the Orange County Sanitation District Adopting a Revised Policy Regarding Board of Directors' Expense Reimbursement and Meeting Attendance and Compensation and Repealing Resolution No. OCSD 06-11. SUMMARY The District has not revised its policy regarding Board of Directors' Expense Reimbursement and Meeting Attendance and Compensation since 2006. Minor revisions are warranted. Reimbursement rates need to be adjusted slightly to reflect the present cost of travel. The Policy should also be revised to conform it to the Ordinance setting the compensation of Directors. The revised Policy further clarifies the events and expenses that are subject to reimbursement and compensation. Finally, the Policy has been reorganized for easier reference. PRIOR COMMITTEE/BOARD ACTIONS May 2006 — Adopt Resolution No. OCSD 06-11, A Resolution of the Board of Directors of Orange County Sanitation District Establishing a Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and Meeting Attendance and Compensation, and Repealing Resolution No. OCSD 06-09. ADDITIONAL INFORMATION The Non-substantive revisions to the Policy include its reorganization to make it easier to refer to it. For example, defined terms are now in the first Article of the Policy. As to expenses authorized for reimbursement, the following clarification and additional flexibility are proposed: Page 1 of 3 997553.1 • The current Policy authorizes reimbursement of expenses for attending District events. The revised Policy states that reimbursement is authorized for attending District events at the invitation of the Board Chair, General Manager and/or designee. • The current Policy requires that travel be booked through the District's designated travel agency. The revised Policy authorizes the General Manager to grant exceptions on a case-by-case basis. • The current Policy authorizes Directors to attend meetings or conferences that are not specifically listed in the Policy with the advance authorization of the Board, or the Board Chair, subject to ratification by the Board. The revised Policy provides that the authorization will be granted by the Steering Committee. If there is not sufficient time for the Steering Committee to review the request, the Board Chair may approve the request in advance subject to ratification by the Steering Committee at its next regularly scheduled meeting. • For lodging, the revised Policy provides that overnight stays in the District's general geographical area (Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial and Kem Counties) may be allowed when the travel time involved is significant. • The revised Policy clarifies that reimbursement rates are based on the allowable rates promulgated by the IRS. The maximum reimbursement for dinner is adjusted from $25 to $30, and the maximum daily reimbursement is being adjusted from $70 to $75. • The revised Policy revises the time within which receipts must be submitted for reimbursement from 60 days from the expense date to three weeks after the travel has concluded. • The revised Policy provides that if a receipt is misplaced or lost, a lost/unavailable receipt memorandum may be prepared detailing the information required for the required expense report. As to compensation for attendance at meetings and for each day's service rendered as a member of the Board, the following clarification and flexibility are proposed: • The revised Policy clarifies that Directors may receive compensation for attending meetings or events approved by the Board Chair. • The current Policy authorizes compensation for Directors attending meetings or events relating to the District's business when approved by the Board or when designated by the General Manager with the concurrence of the Board Chair. The revised Policy provides that the approval will instead be made by the Steering Committee or Board Chair, or when designated by the General Manager with the concurrence of the Board Vice-Chair. Page 2 of 3 997553.1 • The revised Policy clarifies that meetings or events conducted at the request of a Board Member (and not otherwise approved by the Steering Committee, Board Chair, or General Manager with the consent of the Board Vice-Chair) are not compensable. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE The revisions to the Policy are not expected to have major effects on the budget. ATTACHMENT The following attachmentia) are attached in hard copy and may be viewed on-line at the OCSD website (mm w.ocsd.com) with the complete agenda package and attachments: • Draft Resolution No. OCSD 14-XX • Resolution No. OCSD 06-11 Page 3 of 3 997553.1 Return to Mende Report RESOLUTION NO. OCSD 14-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ADOPTING A REVISED POLICY REGARDING BOARD OF DIRECTORS' EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE AND COMPENSATION AND REPEALING RESOLUTION NO. OCSD 06-11 WHEREAS, pursuant to Government Code section 53232.2, the Board of Directors has adopted a written policy specifying the types of occurrences that qualify a member of the Board of Directors to receive reimbursement of expenses related to travel, meals, lodging, and other actual and necessary expenses; and WHEREAS, pursuant to Health & Safety Code section 4733, the District has adopted an Ordinance and a written policy authorizing the payment of compensation to members of the Board of Directors for attendance at meetings and for each day's service rendered as a member by request of the Board Chair; and WHEREAS, the Board of Directors desires to revise its policies for expense reimbursement and compensation; NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Adoption of Policy and Establishment of Procedures. The Board of Directors hereby adopts the revised Policy Regarding Board of Directors' Expense Reimbursement and Meeting Attendance and Compensation, set forth on Exhibit "A", attached hereto and incorporated herein by reference. Section 2: Rescission of Inconsistent Resolutions and Policies. Resolution No. OCSD 06-11 is hereby rescinded. In addition, any prior resolutions and/or policies established by the Board of Directors that are in conflict with the policy set forth in Exhibit "A" shall be deemed rescinded to the extent of such conflict. PASSED AND ADOPTED at a regular meeting held March 26, 2014. Troy Edgar Chairman of the Board ATTEST: Maria E. Ayala Clerk of the Board 962749.2 OCSD 14-XX-1 Return to Mende Report EXHIBIT "A" ORANGE COUNTY SANITATION DISTRICT POLICY REGARDING BOARD OF DIRECTORS' EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE AND COMPENSATION This Policy applies to all regular District Board Members and Alternate Board Members. ARTICLE I: TERMS AND DEFINITIONS As used in this Policy, the following terms shall have the identified meanings. "Accountable Plan" shall mean the Internal Revenue Service Publication No. 463 for Travel, Entertainment, Gift and Car Expenses, or any successor publication. "Alternate Board Member" shall mean a Member of the District's Board of Directors designated by the Director's agency to serve in the absence of the Board Member. "Board Chair"shall mean the Member of the District's Board of Directors who has been elected by the other Members to serve as Chair. "Board Vice-Chair" shall mean the Member of the District's Board of Directors who has been elected by the other Members to serve as Vice-Chair. Whenever this Policy authorizes or requires the Board Chair to act, the Board Vice-Chair may act in the event that the Board Chair is reasonably unavailable to act. "Board Member" shall mean a Member of the District's Board of Directors, appointed by a member agency pursuant to California Health and Safety Code Section 4730.65. "Director" shall mean a Member of the District's Board of Directors, and is the same as "Board Member" as described above. "Incidentals" shall mean any minor, miscellaneous expense incurred during travel, including but not limited to, telephone, facsimile or computer connection service, local ground transportation, baggage handling and storage, and snacks. "Travel Liaison" shall mean the Secretary to the General Manager, or such other employee as designated in writing by the General Manager. 962749.2 ODSD 14-XX-2 Return to Mende Report ARTICLE II. BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT Section 1: General Provisions. The District shall reimburse Board Members for actual and necessary expenses incurred in the performance of their official duties, in accordance with this Article II. Reimbursable expenses include, but are not necessarily limited to, expenses related to travel, meals, and lodging. This Policy serves as the District's "Accountable Plan" under the applicable requirements of the Internal Revenue Code and Treasury Regulations. Section 2: Activities Eligible for Reimbursement. Board Members may receive reimbursement for actual and necessary expenses incurred in the performance of official duties in connection with the following activities: i. Communicating with representatives of regional, state, and national government on issues or matters affecting the District; ii. Attending conferences and/or educational seminars designed to improve the Board Members' expertise and information levels, including, but not limited to, ethics training required pursuant to Government Code Section 53234; Ill. Participating in regional, state, and national organizations whose activities support the District's interests; iv. Attending District events at the invitation of the Board Chair, General Manager, or his/her designee; and V. Implementing a strategy approved by the District for District-related matters. vi. Meetings such as those listed above for which compensation is expressly authorized under this Policy. A Board Member and his or her Alternate Board Member cannot both be compensated for attendance at the same event without prior approval by the Board Chair. Section 3: Responsibilities. A. Directors shall be familiar with and comply with this Policy; ensure that all travel and other reimbursable expenses are reasonable; coordinate multiple Director participation at conferences to avoid unnecessary duplication; and promote economic means of travel. The Board Chair may approve or deny requests for travel or business activities and reimbursements for Board Members. 962749.2 OCSD 14-XX-3 Return to Mende Report B. The General Manager shall be familiar with and comply with this Policy; ensure all travel and other reimbursable expenses are reasonable; coordinate multiple Director participation at conferences; and promote economic means of travel. C. The Travel Liaison shall be familiar with and comply with this Policy; promote economic and reasonable means of travel; and inform the General Manager of all travel expenses that have not been reconciled. The Travel Liaison will also arrange all travel, lodging, accommodations, and seminar/conference registrations for Directors. The Travel Liaison shall use the District's designated travel agency for booking all air and ground travel. The General Manager is authorized to grant exceptions on a case- by-case basis. Any travel or registration not booked through the Travel Liaison, or not granted an exception, may be subject to payment by the Director without reimbursement from the District. D. The District Controller shall be familiar with and comply with this Policy; ensure all travel and other reimbursable expenses conform to this Policy. Section 4: Designated Travel Agency. The District will designate a single travel agency for the Travel Liaison to use to arrange all travel and lodging accommodations for Directors. Section 5: Seminars. Conferences. and Meetings. A. Directors may from time to time receive requests or may elect to attend meetings or conferences pertaining to the water and wastewater utility industry. Attendance at seminars, conferences, and meetings, such as the aforementioned, must be approved in advance by the Steering Committee, except when specifically pre- authorized by this Policy. In the event there is not sufficient time to receive approval from the Steering Committee, the Board Chair has the authority to approve such a request in advance. Any such approval shall be ratified by the Steering Committee at its next regularly scheduled meeting. B. Directors may be asked to, or may desire to, give presentations or otherwise represent the District at seminars, conferences, or meetings. Any Director wishing to attend such events and represent the District by providing a presentation or oral commentary shall request and receive advance authorization from the Steering Committee. If such a request is granted, all expense reimbursements and travel and meeting attendance requirements shall comply with this Policy. In the event there is not sufficient time to receive authorization to act as District representative from the Steering Committee, the Board Chair has the authority to approve such a request in advance. Any such approval shall be ratified by the Steering Committee at its next regularly scheduled meeting. 962749.2 OCSD 14-XX-4 Return to Mende Report C. The number of Directors attending a seminar, conference, or meeting should be minimized, and there must be a District business reason for attendance. Such reasons would include, but are not limited to: presentation of technical findings; attendance at committee meetings, or technical sessions dealing with issues related to District business; or participation as an officer of the association or trade group organizing the event. D. Seminars must be selected based on value to the District. Benefits would include improved efficiency and effectiveness, as well as becoming familiar with new regulatory standards. Preference will be given to seminars that are provided within the Southern California region. E. Attendance at seminars, conferences, or meetings in "destination resort" areas outside California or areas outside the continental United States may only be approved by the Steering Committee. Section 6: Ground Transportation. A. The most economical mode and class of transportation reasonably consistent with travel and scheduling requirements will be used. Each Director shall be reimbursed at the rate per mile established by the United States Internal Revenue Service as allowable for mileage expense deduction for use of a personal vehicle on business of the District. As said allowable rate established by the Internal Revenue Service is periodically changed, said changes in the reimbursement rate shall become effective on the first day of the month following the month in which the change is announced by the Internal Revenue Service. B. In no event shall the amount paid for mileage reimbursement for use of a personally-owned vehicle used for travel in lieu of air travel, exceed the lowest available cost of coach class airfare. C. Personally-owned vehicles used in the conduct of District business must be insured for property and liability damage in an amount not less than the minimum limits required by the California Financial Responsibility Act. D. Reasonable vehicle parking and storage costs will be allowed when rental or personally-owned vehicles are used for District business. E. Highway and bridge tolls are allowable expenses when incurred while conducting District business. F. Directors should only use rental cars for ground transportation when necessary or when it is less expensive than other forms of transportation such as trains, buses, taxis, or shuttles. Discretion must be used in selecting rental car size. The rental car should be the smallest size that provides adequate safety and comfort for the 962749.2 ODSD 14-XX-5 Return to Mende Report period of time it is in use. To accommodate a group of travelers, a larger vehicle may be rented in lieu of renting separate vehicles. G. Directors will not be reimbursed for any surplus insurance purchased for rental cars. The District and Director are sufficiently insured through existing District policies. Only Directors are allowed to operate rental cars. H. Use of chauffeur-driven limousines is not allowed while conducting District business. I. When using ground transportation other than personally-owned vehicles, Directors shall use government and group rates offered by the provider of transportation services when available. Section7: Air Travel . A. Air Travel must be at coach class level. First class travel will only be allowed on an exception basis and must be approved in advance by the Board Chair, based upon physical needs or ability to conduct meaningful work while on board. B. Air Travel should be arranged as early as possible to take advantage of reduced fares for early reservations. Consideration should be given to alternative departure times, departure and arrival airports, dates, flight times, and stopovers to minimize airfares; however, the total cost of the alternatives (e.g., ground transportation, lodging) should also be considered in selecting an alternative. Internet booking services can be consulted to help in finding the optimum alternative; however, flights must still be reserved by the Travel Liaison. C. Government and group rates for airline travel shall be used when available. Section 8: Lodging. A. Government and group rates offered by a provider of lodging services shall be used when available. B. When travel is to a conference or organized educational activity, lodging costs shall not exceed the maximum group published by the conference or activity sponsor. Some conferences require early booking to take advantage of reduced rates. If lodging cannot be arranged at the conference group rate, other lodging accommodations may also be arranged if the cost is less than or equal to the conference group rate. C. Overnight stays may be allowed for meetings or training functions lasting more than one day in OCSD's general geographical area (Orange, Los Angeles, 962749.2 ODSD 14-XX-6 Return to Mende Report Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties) when the travel time involved is significant. Section 9: Meals and Incidentals. Meal expenses are allowed while Directors are traveling. Expenditures for meals will be moderate and reasonable. Expenses for meals not associated with travel but related to an appropriate business purpose meeting, are also allowed. Non-travel business meals will only be reimbursed if taken in conjunction with a District business meeting. All meals that are subject to reimbursement will not exceed the rates indicated below. A. Reimbursement Rates. Directors will be reimbursed for actual meal expenses, including all taxes and gratuities, up to the amounts in Internal Revenue Service Publication 463, or any successor publication, or as specifically indicated below, whichever is less. If meal expenses exceed the allowance amount, the Director will only be reimbursed the allowance amount, with the remainder being paid by the Director. If meal expenses are less than the allowable amount, only the actual expense amount will be reimbursed. All meal expenses must be documented in detail in accordance with this Policy. When receipts are provided, the maximum per meal/expense reimbursements are as follows: Breakfast $15.00 Lunch $20.00 Dinner $30.00 Snacks $10.00 Multiple meal expenses cannot be combined to pay for a more expensive single meal. The Policy is applied strictly as a per meal expense. In no event will a Director be reimbursed more than $75 per travel day. Receipts must provide a detailed account from the restaurant describing actual costs. Restaurant bill stubs do not provide sufficient detail and are not acceptable for reimbursement. Credit card receipts may be accepted, subject to Board Chair approval if itemized, if detailed meal receipts are not provided by the restaurant. B. Non-Reimbursable Meals and Incidentals. Directors will not be reimbursed for the following: i. Meals that are included in the cost of a conference or seminar, nor for meals taken elsewhere in lieu of the meal provided. ii. Meals provided by others. Conflict of interest policies and applicable statutes should be considered when providing meals for or receiving meals from persons or entities other than the District representatives. 962749.2 OCSD 14-XX-7 Return to Mende Report Ill. Meals provided to a spouse or guest. iv. Alcoholic beverages. Section 10: Extended Travel and/or Travel with Family Members. A. When a Director elects to extend his/her stay at travel destinations, or when traveling with family members, all expenses related to such extended or family travel, including, but not limited to airfare, extra meals, extended car rental, lodging, or incidentals shall be paid by the Director without reimbursement. B. When travel time restrictions or transportation discounts make it desirable for a Director to arrive at a conference, seminar, or meeting a day early, or to stay an additional day, those travel days must be approved by the Board Chair in advance. Section 11: Requests for Reimbursement. A. Requests for reimbursement shall be submitted and coordinated through the Travel Liaison, no later than three weeks after the travel has concluded. The Travel Liaison shall ensure that all applicable forms and receipts are prepared and attached, and follow District procedure on expense reimbursement. A delinquent expense report will not be reimbursed unless justified in writing and approved by the Board Chair. All requests for reimbursement must be accompanied by receipts or documentation evidencing each expense. Improper expenditures, or those not adequately documented, will not be reimbursed. Non-essential expenses, including but not limited to, in-room movies, service bar, and similar extras will not be reimbursed. B. All expense reports shall include detailed receipts and state the date, type of expense, District business purpose, those in attendance and their affiliations, and amounts expended. If a receipt is misplaced or lost, a lost/unavailable receipts memorandum must be prepared detailing the information required for the expense report, including the date, payee, description of the expense, business purpose, those in attendance, and the amount. The memorandum must be signed by the General Manager and attached to the reimbursement request. Section 12: Brief Reports to Board. At the next regular meeting of the Board of Directors following the event for which reimbursable expenses are incurred, Directors shall briefly report, orally or in writing, on any meetings attended at District expense. If multiple Directors attended the meeting at District expense, a joint report may be made to the Board of Directors. 962749.2 OCSD 14-XX-8 Return to Mende Report Section 13: Misuse of Resources: Falsification of Reports. Any Board member that misuses public resources, or falsifies expense reports, may lose reimbursement privileges, be required to pay restitution, and/or be subject to civil penalties and/or criminal prosecution. ARTICLE III. COMPENSATION Section 1: Stipends and Compensation. A. Rate. Directors shall be paid compensation for each meeting attended and for each day's service rendered as a member of the Board, at the rate established by District Ordinance, in accordance with this Policy. Directors may receive compensation up to a maximum number of days each month, as prescribed by District Ordinance. B. Authorized Meetings. Directors shall receive compensation, without further action or authorization of the Steering Committee or Board of Directors, for attendance at the following: i. Board of Directors Meetings, Standing Committee Meetings, Special Committee Meetings, and Ad Hoc Committee Meetings, at which the Director is a duly appointed member; ii. Meetings, conferences, and committee meetings of the California Association of Sanitation Agencies, and the National Association of Clean Water Agencies; iii. Meetings of other governmental agencies to which the Director was appointed by the Board Chair; iv. Meetings or events approved by the Board Chair. Meetings or events not approved by the Board Chair or listed above are not considered business of the District. Section 2: Waiver of Compensation. Directors may waive their compensation or so choose to be compensated at a lower rate than the rate established under District Ordinance. Such requests must be submitted in writing to the Clerk of the Board. Section 3: Additional Service Subject to Compensation. Each day's service rendered as a Member of the District's Board of Directors shall be deemed to include, but not be limited to: 962749.2 ODSD 14-XX-9 Return to Mende Report A. Attendance at any meeting of a Committee of which the Director is not a member, when expressly invited or requested to attend by the Board Chair. B. Attendance at conferences or meetings with State and/or Federal Legislators regarding District business, when approved by the Steering Committee. C. Attendance at a meeting, hearing, or conference relating to the business of the District, when approved by the Steering Committee or Board Chair, or when designated by the General Manager with the concurrence of the Board Vice-Chair in advance, and when deemed to be in the best interests of the District, including but not limited to the following: i. Meetings of nonprofit organizations or service club meetings where a Board Member is making a presentation on behalf of the District. ii. Ceremonial events when attending as an official representative of the Board of Directors of the District. iii. Meetings with other elected officials or their employees, which may or may not include District staff. iv. Meetings of the governing body of another agency, of which the District has an official delegate, where a matter directly affecting the interests of the District is agendized for discussion and the Board Member is not compensated by the other agency. V. Meetings with District Staff. vi. Industry related conferences other than California Association of Sanitation Agencies' or National Association of Clean Water Agencies' work conferences. vii. Telephone conferences when physical attendance is impractical and not mandatory. viii. Ethics training required by Government Code sections 53234 — 53235.5. Section 4: Non Comoensable Attendance. Board Members shall not be compensated for the following meetings where there is no District-related business to be conducted: A. Nonprofit organization meetings. 962749.2 OCSD 14-XX-10 Return to Mende Report B. Nonprofit organization events. C. District-sponsored employee events, including, but not limited to, the annual holiday luncheon, employee picnic, or retirement events. D. Social or ceremonial events not pre-authorized by the Steering Committee. E. Service club meetings other than those included in Sections 1 and 3 above. F. Parades, festivals, holiday events, or retirement dinners. G. Meetings with existing or potential contractors, vendors, or consultants. H. Meetings of partisan political organizations. I. Meetings, tours, and similar events conducted at the request of the Board Member. Section 5: One meeting per day. No Director shall receive compensation for attendance at more than one meeting on any one calendar day. Section 6: Alternates. No Alternate Director shall receive compensation for attendance at any meeting or event unless serving in the absence of the regular Director, unless the Board Chair invites the Alternate Director to attend the meeting and approves payment of compensation. ARTICLE IV. EFFECTIVE DATE This Policy was duly adopted by action of the Board of Directors, on and shall be effective upon its adoption. 9627492 OCSD 14-XX-11 ,y Return fu Aoenda Remd A RESOLUTION NO. OCSD 06-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING A POLICY REGARDING BOARD OF DIRECTORS' BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT, AND MEETING ATTENDANCE AND COMPENSATION, AND REPEALING RESOLUTION NO. OCSD 06-09 WHEREAS, the District, by previously adopted Ordinance Nos. OCSD-14 and OCSD-23, has established Board of Directors' compensation for meeting attendance; and, WHEREAS, the Board of Directors desires to revise the policy previously adopted pursuant to Resolution No. 06-09 to comply with all of the requirements in the above-described new statutes. NOW,THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Adoption of Policy and Establishment of Procedures. The Board of Directors hereby adopts the Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and meeting attendance and Compensation, set forth on Exhibit"A", attached hereto and incorporated herein by reference. Section Rescission of Inconsistent Resolutions and Policies. Resolution No. OCSD 06-09 is hereby rescinded. In addition, any prior resolutions and/or policies established by the Board of Directors that are in conflict with the policy set forth in Attachment"A" shall be deemed rescinded to the extent of such conflict. PASSED AND ADOPTED at a regular meeting held May 24;2006. ., _ ATTEST: C r Board Sec&tary 1 Return b Aaenda Rem EXHIBIT "A" ORANGE COUNTY SANITATION DISTRICT POLICY REGARDING DIRECTORS' BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE AND COMPENSATION Article I. Business and Travel Expense Reimbursement It is the District's policy to reimburse Board Members for authorized business and travel expenses in accordance with the procedures of this Policy. This Reimbursement Plan is intended to be an "accountable plan" under the applicable requirements of the Internal Revenue Code and Treasury Regulations. The District, through the Chair of the Board, will authorize attendance at conferences, seminars, meetings and travel, but such expenses related thereto will only be approved to the extent they are necessary to further the accomplishment of District goals and objectives. This Policy applies to all regular and alternate District Board Members authorized to represent the District in business or travel activities. At all times, District representatives serve the public and must do so within the ethical and business performance standards expected of a public agency. Prudent judgment and full compliance with District policies is required. Failure to use discretion in the incurring of business expenses may result in the loss of discretionary travel privileges. Sufficient funds must be included in the current Fiscal Year's operating or capital improvement budgets for all business and travel expenses to be paid or reimbursed under this Policy. Non-compliance with the Policy or falsification of reports or documentary evidence may result in corrective action, including criminal prosecution. Section 1_ Authorized Expenses. A. The following types of occurrences qualify Board Members to receive reimbursement for expenses incurred in the performance of official duties relating to travel, meals, lodging, and other actual and necessary expenses that constitute authorized expenses, provide the requirements of this policy are met: I. Communicating with representatives of regional, state and national government on issues or matters affecting the District or on District- adopted policy or political positions; 2 ReW m to Agenda Reporl ii. Attending conferences and/or educational seminars designed to improve the Board Members' expertise and information levels, including, but not limited to, ethics training required pursuant to Government Code Section 53234; iii. Participating in regional, state and national organizations whose activities affect the District's interests; iv. Attending District events; V. Implementing a District-approved strategy for District- related activities/ business; and A. Meetings such as those listed above for which compensation is expressly authorized under this policy. B. Unless otherwise specifically provided for herein, reimbursement for travel, meals, lodging, and other actual and necessary business expenses shall be at the rates presently in effect as established in Internal Revenue Service Publication 463 or any successor publication. Expenses not covered by this policy, or expenses in excess of the reimbursable rates set forth in this policy, are not reimbursable unless approved by the District Board of Directors in a public meeting before the expense is incurred. Section 2: Terms and Definitions. A. "Accountable Plan"shall mean the Internal Revenue Service Publication No. 463 for Travel, Entertainment, Gift and Car Expenses, or any successor publication. Expenses must have a business connection. Expenses must be adequately documented and include evidence such as receipts, canceled checks, invoices, or credit card statements to support the expenses, and must be submitted within sixty (60) days after they were paid or incurred. Any excess reimbursement must be returned within sixty (60) days. B. "Approval by the Board"shall mean Board of Directors approval at a regularly-scheduled Board Meeting with a quorum present and acting. C. "Alternate Board Member"shall mean a Member of the District's Board of Directors designated by the Director's agency to serve in the absence of the Board Member. When the Board Member is absent, the Alternate Board Member becomes the Board Member, and everything in this Policy applies. The Alternate Board Member and the Board Member cannot both be compensated for the same event without prior approval by the Board Chair. 3 ReW,n to Aaenda Report D. "Board Chair"shall mean the Member of the District's Board of Directors who has been elected by the other Members to serve as Chair. E. "Board Member"shall mean a Member of the District's Board of Directors, appointed by a member agency pursuant to California Health and Safety Code Section 4730.65. F. "Committee Member"shall mean any Member of the Board of Directors, appointed to a Standing or Ad Hoc Committee, established by an action of the Board or Board Chair. G. "Days Service Rendered"shall mean attendance as described in Article II, Section 13, below. H. "Director"shall mean a Member of the District's Board of Directors. I. `Incidentals"shall mean any minor, miscellaneous expense incurred during travel, including but not limited to, telephone, facsimile or computer connection service, local ground transportation, baggage handling and storage, and snacks. K. "Travel Expenses"shall mean transportation, lodging, meals, and incidentals expenses associated with attending a seminar, conference, or meeting requiring an overnight stay. L. "Travel Liaison"shall mean the Secretary to the General Manager, or such other employee as designated in writing by the General Manager. Section 3: Responsibilities. A. Directors shall be familiar with and comply with this Policy; ensure all travel and other reimburseable expenses are reasonable; coordinate multiple Director participation at conferences to avoid unnecessary duplication; and promote economic means of travel. The Board Chair can approve or deny requests for travel or business activities and reimbursements for Board and Committee Members. B. The General Manager shall be familiar with and comply with this Policy; ensure all travel and other reimburseable expenses are reasonable; coordinate multiple Director participation at conferences; and promote economic means of travel. 4 Return b Aaenda Rem C. The Travel Liaison shall be familiar with and comply with this Policy; promote economic and reasonable means of travel; and inform the General Manager of all unreconciled expenses regarding travel matters. D. The District Controller shall be familiar with and comply with this Policy; ensure all travel and other reimburseable expenses are reasonable; coordinate multiple Director participation at conferences; and promote economic means of travel. Section 4: Travel Liaison. The Travel Liaison shall arrange all travel, lodging, accommodations, and seminar/conference registrations for the Directors. The Travel Liaison shall use the District's designated travel agency for booking all air and ground travel. The General Manager is authorized to grant exceptions on a case-by-case basis. Any travel or registration not booked through the Travel Liaison, or not granted an exception, may be subject to payment by the Director without reimbursement from the District. Section : Designated Travel Agencv. The District will designate a single travel agency for the Travel Liaison to use to arrange all travel and lodging accommodations for Directors. Section 6: Seminars. Conferences. and Meetinas. A. Attendance at seminars, conferences, and meetings must be approved in advance by the Board Chair, except when specifically pre-authorized by this Policy. B. Directors may from time to time receive requests or may elect to attend meetings or conferences pertaining to the water and wastewater utility industry, and may be asked to, or may desire to, give presentations or otherwise represent the District at such events. Any Director wishing to attend such events and represent the District by providing a presentation or oral commentary shall request and receive advance authorization from the full Board of Directors. If such a request is granted, all expense reimbursements and travel and meeting attendance requirements shall comply with this Policy. In the event there is not sufficient time to submit a request to act as District Representative to the Board, the Board Chair has the authority to approve such a request in advance; this approval would then be subsequently submitted for ratification at the next regularly scheduled Board meeting. C. The number of Directors attending a seminar, conference, or meeting should be minimized, and there must be a District business reason for attendance. Such reasons would include, but are not limited to: presentation of technical findings; attendance at committee meetings, or technical sessions dealing with issues related to District business; or participation as an Officer of the Association. 5 ReWrn to Mo nda Report D. Seminars must be selected based on value to the District. Benefits would include improved efficiency and effectiveness, as well as becoming familiar with new regulatory standards. Free, local seminars must also be authorized in advance in order to be considered for approval of Director compensation. Preference will be given to seminars that are provided within the Southern California region. E. Attendance at seminars, conferences, or meetings in "destination resort" areas outside California or areas outside the continental United States will not be approved except by vote of the District's Board of Directors' Steering Committee. Section 7: Ground Transportation. A. The most economical mode and class of transportation reasonably consistent with travel and scheduling requirements will be used. Each Director shall be reimbursed at the rate per mile established by the United States Internal Revenue Service as allowable for mileage expense deduction for use of a personal vehicle on business of the District. As said allowable rate established by the Internal Revenue Service is periodically changed, said changes in the reimbursement rate shall become effective on the first day of the month following the month in which the change is announced by the Internal Revenue Service. B. In no event shall the amount paid for mileage reimbursement for use of a personally-owned vehicle used for travel in lieu of air travel, exceed the lowest available cost of coach class airfare. C. Personally-owned vehicles used in the conduct of District business must be insured for property and liability damage in an amount not less than the minimum limits required by the California Financial Responsibility Act. D. Reasonable vehicle parking and storage costs will be allowed when rental or personally-owned vehicles are used for District business. E. Highway and bridge tolls are allowable expenses when incurred while conducting District business. F. Directors should only use rental cars for ground transportation when necessary or when it is less expensive than other forms of transportation such as trains, buses, taxis, or shuttles. Discretion must be used in selecting rental car size. The rental car should be the smallest size that provides adequate safety and comfort for the period of time it is in use. To accommodate a group of travelers, a larger vehicle may be rented in lieu of renting separate vehicles. 6 ReW,n to Aaenda Rw rt G Directors will not be reimbursed for any surplus insurance purchased for rental cars. The District and Director are sufficiently insured through existing District policies. Only Directors are allowed to operate rental cars. H. Use of chauffer-driven limousines is not allowed while conducting District business. I. When using ground transportation other than personally- owned vehicles, Directors shall use government and group rates offered by the provider of transportation services when available. Section 8: Air Transportation. A. Air transportation must be at coach class level. First class travel will only be allowed on an exception basis and must be approved in advance by the Board Chair, based upon physical needs or ability to conduct meaningful work while on board. B. Air transportation should be arranged as early as possible to take advantage of reduced fares for early reservations. Consideration should be given to alternative departure times, departure and arrival airports, dates, flight times, and stopovers to minimize airfares; however, the total cost of the alternatives (e.g., ground transportation, lodging) should also be considered in selecting an alternative. Internet booking services can be consulted to help in finding the optimum alternative; however, flights must still be reserved by the Travel Liaison. C. Government and group rates for airline travel shall be used when available. Section 9: Lodging. A. Government and group rates offered by a provider of lodging services shall be used when available. B. When travel is to a conference or organized educational activity, lodging costs shall not exceed the maximum group published by the conference or activity sponsor. Some conferences require early booking to take advantage of reduced rates. If lodging cannot be arranged at the conference group rate, other lodging accommodations may also be arranged if the cost is less than or equal to the conference group rate. No lodging within sixty (60) miles of the District's Administrative Offices or the Director's residence, whichever is less, will be reimbursed. 7 Rehm to Agenda Reporl Section 10: Meals and Incidentals. Meal expenses are allowed while Directors are traveling. Expenditures for meals will be moderate and reasonable. Expenses for meals not associated with travel but related to an appropriate business purpose meeting, are also allowed. Non-travel business meals will only be reimbursed if taken in conjunction with a District business meeting. Meals for Directors' guests will be reimbursed only if they have a legitimate business relationship with the District. A. Reimbursement Rates. Directors will be reimbursed for actual meal expenses, including all taxes and gratuities, up to the amounts indicated below. If meal expenses exceed the allowance amount, the Director will only be reimbursed the allowance amount, with the remainder being paid by the Director. If meal expenses are less than the allowable amount, only the actual expense amount will be reimbursed. All meal expenses must be documented in detail in accordance with this Policy. When receipts are provided, the maximum per meal/expense reimbursements are as follows: Breakfast $15.00 Lunch $20.00 Dinner $25.00 Snacks $10.00 Multiple meal expenses cannot be combined to pay for a more expensive single meal. The Policy is applied strictly as a per meal expense. In no event will a Director be reimbursed more than $70 per travel day under the Receipt Method. Receipts must be a detailed receipt from the restaurant for actual costs. Restaurant bill stubs do not provide sufficient detail and are not acceptable for reimbursement. Credit card receipts may be accepted, subject to Board Chair approval if itemized, if detailed meal receipts are not provided by the restaurant. B. Non-Reimbursable Meals and Incidentals. Directors will not be reimbursed for the following: i. Meals that are included in the cost of a conference or seminar, nor for meals taken elsewhere in lieu of the meal provided. ii. Meals provided by others. Conflict of interest policies and applicable statutes should be considered when providing meals for or receiving meals from persons or entities other than the District representatives. III. Meals provided to a spouse or guest. iv. Alcoholic beverages consumed by a Director or others. 8 ReW,n to Ao da Report Section 11: Extended Travel and/or Travel with Family Members. When a Director elects to extend his/her stay at travel destinations, or when traveling with family members, all expenses related to such extended or family travel, including, but not limited to airfare, extra meals, extended car rental, lodging, or incidentals shall be paid by the Director without reimbursement. When travel time restrictions or transportation discounts make it desirable for a Director to arrive at a conference, seminar, or meeting a day early, or to stay an additional day, those travel days will be considered the same as a day's service rendered; provided, approval is obtained from the Board Chair in advance. Section 12: Requests for Reimbursement. A. Requests for reimbursement shall be submitted to the District Controller not later than sixty (60) days after payment by the individual and shall be submitted on forms provided by the District. A delinquent expense report will not be reimbursed unless justified in writing and approved by the Board Chair . All requests for reimbursement must be accompanied by receipts or documentation evidencing each expense. Improper expenditures, or those not adequately documented, will not be reimbursed. Non-essential expenses, including but not limited to in-room movies, service bar, etc. will not be reimbursed. B. All expense reports shall include detailed receipts (except for meals to be paid pursuant to Section 9.B. above) and state the date, type of expense, District business purpose, those in attendance and their affiliations, and amounts expended. Section 13: Brief Reports to Board. At the next regular meeting of the Board of Directors following the event for which expenses are incurred, Directors shall briefly report, orally or in writing, on any meetings attended at District expense. If multiple Directors attended the meeting at District expense, a joint report may be made to the Board of Directors. Article H. Meeting Attendance and Compensation Section 12: Directors shall be paid a stipend as compensation, at the rate determined by the Board of Directors, and adopted by Ordinance No. OCSD-14 as amended, for attendance at Meetings, as defined below, and for each Day's Service Rendered as a Member of the Board. "Maximum Meetings Allowed Per Month" shall mean for the Board Chair, ten (10) meetings, or ten (10) days' service rendered per month; for all other Directors, six (6) meetings or six (6) days' service rendered per month. 9 4 Return fu Aoenda Remd "Meetings"shall mean all regularly convened Board of Directors Meetings, Standing Committee Meetings, Ad Hoc Committee Meetings, and other Meetings called by the Board Chair. Also included are specific industry conferences and business meetings of a recurring nature, such as the California Association of Sanitation Agencies and the Association of Metropolitan Sewerage Agencies, designated by the Board Chair. Meetings not sanctioned by the Board Chair are not considered business of the District. Section 1 : Directors shall receive a stipend as compensation, without further action or authorization of the Chair or the Board of Directors for attendance at the following: Board of Directors meetings; Standing Committee and Ad Hoc Committee meetings, of which the Director is a duly appointed member; meetings, conferences and committee meetings of CASA and AMSA; meetings of other governmental agencies, at which the District has an official delegate. Section 14: Each Day's Service Rendered as a Member of the District's Board of Directors, shall be deemed to include, but not be limited to: A. Attendance at any Meeting of a Committee of which the Director is not a member, when expressly invited to attend said Committee Meeting by the Chair of the Board of Directors. B. Attendance at conferences with State and/or Federal Legislators regarding District business, when approved by action of the Board of Directors. C. Attendance at a meeting, hearing, or conference relating to the business of the District, when approved by action of the Board of Directors, or when designated by the General Manager, with the concurrence of the Chair, in advance, and when deemed to be in the best interests of the District, including but not limited to the following: i. Meetings of nonprofit organizations or service club meetings where a Board Member is making a presentation on behalf of the District. ii. Ceremonial events. iii. Meetings with other elected officials or their employees, which do not include District Staff. iv. Meetings of the governing body of another agency, of which the District has an official delegate, where a matter directly affecting the 10 Return to Agenda Report interests of the District is agendized for discussion and the Board Member is not compensated by the other agency. V. Meetings with District Staff. vi. Industry related conferences other than California Association of Sanitation Agencies' or Association of Metropolitan Sewerage Agencies' work conferences. vii. Telephone conferences when physical attendance is impractical and not mandatory. viii. Ethics training required by Government Code sections 53234— 53235.5. Section 15: Non Compensable Attendance. Board Members shall not be compensated for the following meetings where there is no District-related business to be conducted: A. Nonprofit organization meetings. B. Nonprofit organization events. C. District-sponsored employee events, including but not limited to the annual holiday luncheon, employee picnic, or retirement events. D. Social or ceremonial events not pre-authorized by the Board. E. Service club meetings other than those included in Section 14(C)(i) above. F. Parades, festivals, holiday events, or retirement dinners. G. Meetings with existing or potential contractors, vendors, or consultants. H. Meetings of partisan political organizations. Section 16: No Director shall receive compensation for attendance at more than one meeting on any one calendar day. Section 17: No Alternate Director shall receive compensation for attendance at any meeting unless serving in the absence of the regular, Active Director, unless the Board Chair invites the Alternate Director to attend the meeting and approves payment of compensation. 11 Return to Agenda Repotl The Policy was duly adopted, by action of the Board of Directors, on 2006 and shall be effective upon its adoption. 12 ADMINISTRATION COMMITTEE Neeting/14 Date T1.1 IDir. 03/123/26/14 AGENDA REPORT Item Number Item Number s Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: ORDINANCE NO. OCSD-XX, AMENDING ORDINANCE NO. OCSD-34 TO REDUCE THE MAXIMUM NUMBER OF COMPENSABLE DAYS OF SERVICE PER MONTH, FROM TEN TO SIX, FOR THE BOARD CHAIRPERSON GENERAL MANAGER'S RECOMMENDATION A. Introduce Ordinance No. OCSD-XX, entitled "An Ordinance of the Board of Directors of Orange County Sanitation District Amending Ordinance No. OCSD- 34 Pertaining to the Compensation of the Members of the board of Directors'; and B. Motion to read Ordinance No. OCSD-XX by title only and waive reading of said entire Ordinance on March 26, 2014; and C. Set April 23, 2014, as the date of the Public Hearing to hear protests and for the second reading and adoption of Ordinance No. OCSD-XX. D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. SUMMARY Ordinance No. OCSD-34 establishes the compensation of the Board of Directors and authorizes compensation for attendance at each meeting of the Board of Directors, or for each day's service rendered as a Member of the Board, by request of the Board; for no more than a total of six meetings per month. The Board Chairperson is authorized to receive compensation for up to ten meetings per month. The proposed ordinance revises the compensation so that the Chairperson receive compensation for up to six meetings per month, equal to the maximum compensation authorized for the rest of the Board. PRIOR COMMITTEE/BOARD ACTIONS November 2007— Board adopted Ordinance No. OCSD-34, Establishing Board of Directors Compensation Page 1 of 2 987428.1 ADDITIONAL INFORMATION The District has been working to reduce costs reducing the maximum compensation for the Board Chairperson is consistent with the District's cost reduction measures. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website(www.ocsd.coml with the complete agenda package: • Draft Proposed Ordinance No. OCSD-XX • Ordinance No. OCSD-34 Page 2 of 2 987428.1 Return to Mende Report ORDINANCE NO.00SD- AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT, AMENDING ORDINANCE NO. OCSD-34 PERTAINING TO THE COMPENSATION OF THE MEMBERS OF THE BOARD OF DIRECTORS. WHEREAS, Members of the Board of Directors are entitled, by the provisions of State law, to receive compensation for attendance at meetings, or for each day's service rendered as a Member of the Board; and, WHEREAS, Ordinance No. OCSD-34 establishes the compensation of the Board of Directors and authorizes additional compensation for the Board Chairperson; and, WHEREAS, the Board wishes to amend Ordinance No. OCSD-34 to set the compensation of the Board Chairperson to be the same as that of the rest of the Board Members. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: Section 1: Section 1 of Ordinance No. OCSD-34 is hereby amended to read: "That each Director shall receive the sum of Two Hundred Twelve Dollars and Fifty-Cents ($212.50) for attendance at each meeting of the Board of Directors, or for each day's service rendered as a Member of the Board, by request of the Board; provided that each Director shall receive compensation for not more than a total of six (6) meetings or six (6) days' service per month." Section 2: Section 2 of Ordinance No. OCSD-34 is hereby repealed. Section 3: If any provision of this Ordinance is adjudged by a Court of proper jurisdiction to be invalid, or unenforceable, it is the intention of the governing body adopting this Ordinance, that all other provisions shall be valid and enforceable. Section 4: This Ordinance shall be effective sixty (60) days after adoption. PASSED AND ADOPTED at a regular meeting of the Board of Directors of the Orange County Sanitation District held on 2014. Chair of the Board of Directors Orange County Sanitation District 1 9874".] Return to Mende Report ATTEST: Clerk of the Board Orange County Sanitation District Bradley R. Hogin, General Counsel Orange County Sanitation District 2 9894N.1 Return to Mende Report ORDINANCE NO.00SD-34 AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT, ESTABLISHING BOARD OF DIRECTORS' COMPENSATION, AND REPEALING ORDINANCE NO. OCSD-14 AND ORDINANCE NO. OCSD-23 WHEREAS, Members of the Board of Directors are entitled, by the provisions of State law, to receive compensation for attendance at meetings, or for each day's service rendered as a Member of the Board; and, WHEREAS, the last adjustment in the per diem compensation for Directors was effective in 2001; and, WHEREAS, the State Legislature, during the regular Session of Year 2000, adopted legislation (Senate Bill 1559), Chaptered in law (Ch. 86, Stats. 2000), effective January 1, 2001, authorizing the adoption of an Ordinance pursuant to California Water Code Sections 20200 through 20207, including an increase of the per diem compensation in an amount not to exceed five (5%) percent for each calendar year following the operative date of the last adjustment; and, WHEREAS, a policy has been established in Resolution No. OCSD 04-16 regarding Board of Directors' business and travel expense reimbursement, and meeting attendance and compensation; and, WHEREAS, the Board of Directors determines that the proposed increase is reflective of increases in the cost of living related to the performance of service. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: Section 1: That each Director shall receive the sum of Two Hundred Twelve Dollars and Fifty-Cents ($212.50) for attendance at each meeting of the Board of Directors, or for each day's service rendered as a Member of the Board, by request of the Board; provided that each Director, other than the Chair of the Board, shall receive compensation for not more than a total of six (6) meetings or six (6) days' service per month. Section 2: The Chair of the Board shall receive compensation for not more than a total of ten (10) meetings, or ten (10) days' service per month. Section 3: If any provision of this Ordinance is adjudged by a Court of proper jurisdiction to be invalid, or unenforceable, it is the intention of the Return to Mende Report governing body adopting this Ordinance, that all other provisions shall be valid and enforceable. Section 4: Ordinance Nos. OCSD-14 and OCSD-23 are hereby repealed. Section 5: This Ordinance shall be effective sixty (60) days after adoption. PASSED AND ADOPTED at a regular meeting of the Board of Directors of the Orange County Sanitation District held November 28, 200T Chi of the Board of ectors O e County Sanita ion District ATTEST: �� Clerk of of t Orange County Sanitation District r Bradley R. H gin, Gener;ArC946s61 Orange County Sanitation Di trict ' Return b Aaenda Report STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) I, PENNY M. KYLE, Clerk of the Board of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD-34 was passed and adopted at a regular meeting of said Board on the 28th day of November, 2007, by the following vote, to wit: AYES: Steven Choi; Larry Crandall; Doug Davert; Jim Ferryman; Rich Freschi; Cathy Green; Phil Luebben; Roy Moore; Joy Neugebauer; Chris Norby; Ken Parker; Constance Underhill; Mark Waldman; Don Webb NOES: Charles Antos; Don Bankhead; Tom Beamish; Bill Dalton; Patsy Marshall; Dave Shawver; Harry Sidhu; Jim Winder; ABSENT: Jon Dumitru; Darryl Miller; Sal Tinajero IN WITNESS WHEREOF, I have hereunto set my hand this 28th day of November, 2007. Penny M. We Clerk of the Board Orange County Sanitation District H:OEPT MO\IM1510SAROINTNCESVMMCSD. LOROIMNCE CERTIFICNMMWC ADMINISTRATION COMMITTEE Neebng Dare To ad.of Dir. 03,12,14 -- AGENDA REPORT Item Number Item Number 6 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations & Maintenance SUBJECT: OCEAN WATER QUALITY AND DISINFECTION PROGRAM GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY As part of the ongoing Board Member Orientation effort, OCSD staff will provide a general presentation on specific topics that the Board of Directors requested via a survey conducted in October. Each month a different topic will be presented to both the Administration Committee as well as the Operations Committee. PRIOR COMMITTEE/BOARD ACTIONS Informational presentation provided in February at the Administration and Operations Committee on OCSD's Budget Process and Finances. ADDITIONAL INFORMATION N/A CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENT N/A Page 1 of 1 ADMINISTRATION COMMITTEE Meeting Date To ad.of W. 03f1 , -- AGENDA REPORTItem Number Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: FY 2014-15 AND FY 2015-16 BUDGET UPDATE GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY For continued discussion on the development of the District's Proposed FY 2014-15 and FY 2015-16 Budget, detail of the District's revenues has been provided below. The proposed budget will be presented for adoption at the June 25, 2014 Board meeting. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS The following affachment(s) is provided in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: FY 2014 -16 Budget Development Revenue Detail JDH:LT:MW:jf Page 1 of 4 FY 2014-16 Budget Development Detail Revenue Summary(in millions) Category 2013-14 2014-15 2015-16 Adopted Proposed Proposed Beginning Reserves $607.0 $573.4 $643.4 Revenues: Service Fees 248.5 253.5 271.3 Permit User Fees 11.4 10.5 11.3 CFCC 6.8 7.7 7.7 Property Taxes 63.4 61.0 61.0 Interest 11.7 12.0 12.0 Other Revenue 30.3 23.0 24.6 Debt Proceeds 0.0 120.0 0.0 Total Revenue $372.1 $487.7 $387.9 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 2014.15 2015.16 General Service Fees- $292.6M $300.OM 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 2 of 4 2014-15 2015-16 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. For FY 2013-14, FY 2014-15, and FY 2015-16, these rates were set at$308, $316, and $323. These rates are still well below the average annual sewer rate of $484 currently being charged throughout the state according to a 2013 survey of 759 agencies encompassing all counties within California. Industrial Waste Permit User Fees— $11.6m $11.8M 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)— $8.71VI $9.5M 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— $77.4101 $81.3M 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— $19.4M $18.6m 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 3 of 4 2014-15 2015-16 Other Revenue— $23.6M $23.7M Other revenue also includes $16.5 million and $16.4 from the Irvine Ranch Water District (IRWD)for capital, O&M, and solids charges and $3.1 million and $3.2 million for sewer services provided to the Santa Ana Watershed Protection Authority (SAWPA)for FY 2014- 15 and 2015-16, respectively. Debt Proceeds— $O.OM $O.OM Certificates of Participation (COPS) are the District primary mechanism for financing capital projects. COPS are repayment obligations based on a lease or installment sale agreement. COPS are not viewed as "debt" by the State of California, but rather a share in an installment arrangement where the District serves as the purchaser. Debt Financing Due to the magnitude of identified future annual capital and operations and maintenance expenditures, it is necessary that the District utilize debt financing to meet its total obligations. Debt financing allows the District to meet projected construction schedules while achieving the lowest possible user fees, as well as long-term stability for the user fees. Financing The District uses long-term borrowing 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 the $2.1 billion in capital improvemetns 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 $390 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 4 of 4 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary AQMD Air Quality Management District ASCE American Society of Civil Engineers BOO 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) 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 OOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration POTW Publicly Owned Treatment Works ppm Parts per million RFP Request For Proposal 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 SAWPA 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. 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. 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 (DR) — 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. 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.