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HomeMy WebLinkAbout05-08-2019 Administration Committee Meeting Agenda05/08/19 Administration Committee SPECIAL Meeting Agenda Page 1 of 4 Orange County Sanitation District SPECIAL Meeting of the ADMINISTRATION COMMITTEE Wednesday, May 8, 2019 4:00 P.M. PLANT NO. 2 OPERATIONS CENTER Operations & Training Conf. Room 22212 Brookhurst St. Huntington Beach, California 92646 (714) 593-7433 AGENDA CALL TO ORDER RECESS - PLANT NO. 2 TOUR Members of the Administration Committee will take a one-hour tour of Plant No. 2 beginning at 4:00 p.m., with the business meeting reconvening thereafter at 5:00 p.m. RECONVENE DECLARATION OF QUORUM: (Clerk of the Board) PUBLIC COMMENTS: If you wish to address the Committee on any item, please complete a Speaker’s Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you want to speak. Speakers will be recognized by the Chairman and are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee. CONSENT CALENDAR: The Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve Minutes of the April 10, 2019 Administration Committee Meeting. 05/08/19 Administration Committee SPECIAL Meeting Agenda Page 2 of 4 2. IBM TIVOLI MAXIMO AND WEBSPHERE (ENTERPRISEONE) ANNUAL SUBSCRIPTION AND SUPPORT (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: A. Approve an Annual Purchase Order Contract with Dataskill, Inc. for the renewal of software licensing and maintenance for IBM Maximo and WebSphere, for an amount not to exceed $173,774, for the period beginning July 1, 2019 through June 30, 2020, with four (4) one-year renewal options; and B. Approve a contingency of $26,066 (15%). 3. LAPTOP AND DESKTOP COMPUTER REPLACEMENT (Lorenzo Tyner) RECOMMENDATION: A. Award a Purchase Order Contract to Zones, Inc. for the purchase of 131 HP computers, Specification No. E-2019-1051BD, for a total amount not to exceed $113,783; and B. Approve a contingency of $11,378 (10%). 4. GENERGAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: A. Receive and file Orange County Sanitation District purchases made under the General Manager’s authority for the period of January 1, 2019 to March 31, 2019; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of January 1, 2019 to March 31, 2019: • DME - Expansion Joints • DRAKE CONTROLS - On-site Training for Woodward Governor Controls • ENVIRONMENTAL RESOURCES ASSOCIATES (ERA) - Quality Control Standards • ORANGE COUNTY SHERIFF’S DEPARTMENT - Law Enforcement and Security Services • OVIVO - Trickling Filter Clarifier Assessment and Repairs • SDT NORTH AMERICAN - On-site Training for Ultrasound Detectors • TPC TRAINING - On-site Electricity Training 05/08/19 Administration Committee SPECIAL Meeting Agenda Page 3 of 4 5. CONSOLIDATED FINANCIAL REPORT FOR THIRD QUARTER ENDED MARCH 31, 2019 (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District Third Quarter Financial Report for the period ended March 31, 2019. NON-CONSENT: None. INFORMATION ITEMS: 6. CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FY 2019-20 (Kathy Millea) Each month, staff provides an informational presentation on topics of interest to the Board of Directors. This month’s topic: Orange County Sanitation District Capital Improvement Program Budget. 7. FY 2019-20 BUDGET UPDATE (Lorenzo Tyner) Provide an update and overview of the FY 2019-20 Proposed Budget including Revenues, Operating Expenditures, and Capital Improvement Program. Staff will make a brief presentation at the Committee meeting. The Budget Update, effective July 1 of this year, will be presented for re-adoption at the June 26, 2019 Board meeting. DEPARTMENT HEAD REPORTS: CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Board members may request staff to place an item on a future agenda. ADJOURNMENT: The next Regular Meeting Administration Committee meeting is scheduled for June 12, 2019 at 5:00 p.m. 05/08/19 Administration Committee SPECIAL Meeting Agenda Page 4 of 4 Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board’s office at (714) 593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Sanitation District’s Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A. Lore, MMC Clerk of the Board (714) 593-7433 klore@ocsd.com For any questions on the agenda, Committee members may contact staff at: General Manager James Herberg (714) 593-7300 jherberg@ocsd.com Assistant General Manager Lorenzo Tyner (714) 593-7550 ltyner@ocsd.com Assistant General Manager Rob Thompson (714) 593-7310 rthompson@ocsd.com Director of Environmental Services Lan Wiborg (714) 593-7450 lwiborg@ocsd.com Director of Human Resources Celia Chandler (714) 593-7202 cchandler@ocsd.com 04/10//2019 Administration Committee Minutes Page 1 of 5 MINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, April 10, 2019 at 5:00 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Chairman Wanke on April 10, 2019 at 5:05 p.m. in the Administration Building of the Orange County Sanitation District. Director Christina Shea led the Flag Salute. A quorum was declared present as follows: COMMITTEE MEMBERS PRESENT: Chad Wanke, Chairman Richard Murphy, Vice-Chairman James Ferryman Cecilia Iglesias (Alternate) Peter Kim Mark Murphy Steve Nagel Andrew Nguyen Glenn Parker Erik Peterson Christina Shea David Shawver, Board Chairman John Withers, Board Vice-Chairman COMMITTEE MEMBERS ABSENT: Mark Murphy STAFF PRESENT: Jim Herberg, General Manager Lorenzo Tyner, Assistant General Manager Celia Chandler, Director of Human Resources Kathy Millea, Director of Engineering Tina Knapp, Assistant Clerk of the Board Jennifer Cabral Rod Collins Al Garcia Ted Gerber Heidi Janz Lori Karaguezian Mark Kawamoto Laura Maravilla Jeff Mohr Tyler Ramirez Wally Ritchie Roya Sohanaki Steve Speakman John Swindler OTHERS PRESENT: Brad Hogin, General Counsel Robert Lowe, Alliant PUBLIC COMMENTS: None. REPORTS: Committee Chair Wanke welcomed Christina Shea, recently appointed Director from the City of Irvine and reminded the Committee that the May meeting of this Committee to be held on May 8 will meet at Plant No. 2 in Huntington Beach, CA. Chair Wanke also ITEM NO. 1 04/10//2019 Administration Committee Minutes Page 2 of 5 indicated that the meeting will begin at 5:00 p.m.; with a tour scheduled prior to the meeting, beginning at 4:00 p.m. The Clerk’s office will ensure that a reminder is sent to the Committee. General Manager Jim Herberg indicated that he will be out of the office from April 11 – April 22 and that Assistant General Manager Rob Thompson has his designation of authority while he is out. Assistant General Manager Lorenzo Tyner indicated that Lan Wiborg has been hired as the new Director of Environmental Services and starts later this month. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the March 13, 2019 Administration Committee Meeting. AYES: Ferryman, Iglesias (Alternate), Kim, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Wanke NOES: None ABSTENTIONS: None ABSENT: M. Murphy and Withers 2. DIGITAL DROPLET POLYMERASE CHAIN REACTION (DDPCR) LABORATORY INSTRUMENT PURCHASE (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Approve a purchase order contract to Bio-Rad for a Digital Droplet Polymerase Chain Reaction laboratory instrument for Sole Source Control Number 2074 in an amount not to exceed $99,990 including tax, freight, and a two-year service contract. AYES: Ferryman, Iglesias (Alternate), Kim, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Wanke NOES: None ABSTENTIONS: None ABSENT: M. Murphy and Withers 3. ENTERPRISE CONTENT MANAGEMENT SYSTEM AND RECORDS MANAGEMENT NEEDS ASSESSMENT (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Consultant Services Agreement to ThirdWave Corporation to provide Enterprise Content Management System and 04/10//2019 Administration Committee Minutes Page 3 of 5 Records Management Needs Assessment, Specification No. CS-2019-1010BD, for a total amount not to exceed $116,903; and B. Approve a contingency of $23,380 (20%). AYES: Ferryman, Iglesias (Alternate), Kim, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Wanke NOES: None ABSTENTIONS: None ABSENT: M. Murphy and Withers NON-CONSENT: 4. PROPOSED ADOPTION OF WASTEWATER DISCHARGE REGULATIONS, ORDINANCE NO. OCSD-XX (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Introduce Ordinance No. OCSD-XX, entitled “An Ordinance of the Board of Directors of the Orange County Sanitation District Amending Wastewater Discharge Regulations; and repealing Ordinance No. OCSD-48” for first reading at the April 24, 2019 Board meeting; B. Motion to read Ordinance No. OCSD-XX by title only and waive reading of said entire Ordinance on April 24, 2019; C. Set May 22, 2019, as the date for the second reading and adoption of Ordinance No. OCSD-XX; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. AYES: Ferryman, Iglesias (Alternate), Kim, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Wanke NOES: None ABSTENTIONS: None ABSENT: M. Murphy and Withers 5. PROPOSED ORDINANCE NO. OCSD-XX AMENDING SECTION 2.06 OF ARTICLE II, TABLE A, TABLE B, AND TABLE C OF ORDINANCE NO. OCSD-50 CONCERNING CAPITAL FACILITY CAPACITY CHARGES (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Recommended to the Board of Directors to: A. Introduce Ordinance No. OCSD-XX entitled: “An Ordinance of the Board of Directors of Orange County Sanitation Amending Section 2.06 of Article II Table A, Table B and Table C of Ordinance No. OCSD-50 Concerning Capital Facility Capacity Charges”; B. Motion to read Ordinance No. OCSD-XX by title only and waive reading of said entire ordinance on April 24, 2019; 04/10//2019 Administration Committee Minutes Page 4 of 5 C. Set May 22, 2019, as the date for the second reading and adoption of the Ordinance No. OCSD-XX; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. AYES: Ferryman, Iglesias (Alternate), Kim, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Wanke NOES: None ABSTENTIONS: None ABSENT: M. Murphy and Withers INFORMATION ITEMS: 6. FY 2019-20 OPERATING BUDGET UPDATE (Lorenzo Tyner) Mr. Tyner provided a brief overview of this item and introduced Wally Ritchie, Controller, who provided a PowerPoint presentation that included an overview of the line-item expenditure details for the FYI 2019-20 Operating Budget, including salaries, wages, and benefits; contractual services; repairs and maintenance; operating materials and supplies; utilities; other operating supplies; administrative expenses; training and meetings; printing and publishing; and cost allocation. Board Vice-Chair John Withers arrived at 5:14 p.m. In response to questions from Board Vice-Chair Withers, staff indicated a report on chemical utilitzation at OCSD will be presented in the future. 7. STATUS OF 2019-20 PROPERTY-LIABILITY INSURANCE RENEWALS (Celia Chandler) Director of Human Resources Celia Chandler porivded an introduction to this item and introduced Robert Lowe from Alliant, who is part of the Santiation District’s brokerage team. Mr. Lowe provided a PowerPoint presentation that provided an update regarding the upcoming annual renewals of the Sanitation District’s major insurance policies and reviewed impacts of unforeseen catastrophic events like wildfires, public entity liability, excess workers’ compensation, an overview of property insurance and earthquakes, historical rates, and renewal strategy. Board Vice-Chair Withers asked for specifics about OCSD claims and how the Saniation District’s experience compares to other agencies and if there are additional measures that can be taken to minimize risk and reduce rates. Mr. Lowe indicated that the Sanitation District is about average in the marketplace. 04/10//2019 Administration Committee Minutes Page 5 of 5 8. CAPITAL IMPROVEMENT PROGRAM PERFORMANCE UPDATE FOR FY 2018-19 (Kathy Millea) Director of Engineering Kathy Millea briefly introduced this item and indicated that Jeff Mohr, Engineering Manager, would provide the presentation pertaining to this item. Mr. Mohr’s presentation included an overview of the Sanitation District’s Capital Project life cycle, FY 18/19 Capital Improvement Program (CIP) outlays by project phase, projected net CIP outlay, planning studies, specific information on several projects, design accomplishments, construction accomplishments, performance indicators, cumulative change order rates, program non-construction costs, and factors affecting non-construction costs & change order rates. Ms. Millea provided a brief overview of the projects needed to complete the Groundwater Replenishment System (GWRS) and how the grant money will be distributed between the Sanitation District and Orange County Water District. DEPARTMENT HEAD REPORTS: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Committee Chairman Wanke declared the meeting adjourned at 6:04 p.m. to the next regularly scheduled meeting of May 8, 2019 at 4:00 p.m. to be held at Plant No. 2 in Huntington Beach, CA. Submitted by: _____________________ Tina Knapp, CMC Assistant Clerk of the Board Page 1 of 3 ADMINISTRATION COMMITTEE Meeting Date 05/08/19 To Bd. of Dir. 05/22/19 AGENDA REPORT Item Number 2 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: IBM TIVOLI MAXIMO AND WEBSPHERE (ENTERPRISEONE) ANNUAL SUBSCRIPTION AND SUPPORT GENERAL MANAGER'S RECOMMENDATION A. Approve an Annual Purchase Order Contract with Dataskill, Inc. for the renewal of software licensing and maintenance for IBM Maximo and WebSphere, for an amount not to exceed $173,774, for the period beginning July 1, 2019 through June 30, 2020, with four (4) one-year renewal options; and B. Approve a contingency of $26,066 (15%). BACKGROUND IBM Maximo was implemented in January 2015 and is used by Orange County Sanitation District’s (Sanitation District) Operations and Maintenance Department in the lifecycle management of the treatment plants’ physical assets. The product provides real-time visibility into asset performance and enables staff to proactively control and optimize asset performance. This includes improved asset and labor productivity, better optimization of maintenance resources, improved efficiency in inventory management, and prevention of asset failure. IBM WebSphere is a necessary software component of JD Edwards, the Sanitation District’s Financial Management system. To properly maintain and repair the Sanitation District facilities, the Information Technology (IT) division needs to purchase software support and maintenance as a service for IBM Maximo and IBM WebSphere software. Such requirements will help maintain our Enterprise Asset Management system (IBM Maximo) and the Financial Management system. The renewal and payment for software support and maintenance is executed on an annual basis. RELEVANT STANDARDS • Protect Orange County Sanitation District assets • Maintain a proactive asset management program • Maintain a culture of improving efficiency to reduce the cost to provide the current Page 2 of 3 PROBLEM The annual software maintenance for IBM Maximo and IBM WebSphere will expire on June 30, 2019. Failure to renew the software licensing and maintenance will prevent the Sanitation District from accessing software support and necessary updates from IBM to enhance and correct any software issues that may cause interruption in service. PROPOSED SOLUTION Renew the annual software maintenance for IBM Maximo and IBM WebSphere before June 30, 2019. TIMING CONCERNS The renewal must be completed prior to June 30, 2019. RAMIFICATIONS OF NOT TAKING ACTION Not renewing the annual software maintenance will cause the Sanitation District to lose support and software enhancements from IBM. The Sanitation District would also need to repurchase all the software at a cost of more than a million dollars. PRIOR COMMITTEE/BOARD ACTIONS May 2018 – Administration Committee approved an Annual Purchase Order Contract with Dataskill, Inc. for the Renewal of Software Licensing and Maintenance Agreement for IBM Maximo and WebSphere, for an amount not to exceed $167,676; and approved a contingency of $16,768 (10%). ADDITIONAL INFORMATION For the upcoming year’s renewal, the Sanitation District’s Purchasing Division, in collaboration with the IT division, administered a bidding process for this purchase (Specification No. S-2019-1045BD), obtaining competitive sealed bids from vendors in accordance with Section 2.02 of the Sanitation District's Purchasing Ordinance. The Sanitation District received responses from Dataskill, GlassHouse Systems, Fields Consulting services, and Saitech Inc. Saitech Inc. initially came in as the lowest bidder, but the bid did not account for all line items; hence, Saitech Inc. withdrew their bid. The next lowest and most responsive and responsible proposer was Dataskill, Inc. with a bid of $173,774. Staff recommends selection of Dataskill, Inc. to provide IBM Tivoli Maximo and WebSphere (EnterpriseOne) annual subscription and support. The 15% contingency requested is to cover the annual increase in license cost for the four (4) one-year optional renewals. Page 3 of 3 CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. (FY2018-19 Budget, Section 6, Page 36, Line item: Repairs & Maintenance). ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A Page 1 of 2 ADMINISTRATION COMMITTEE Meeting Date 05/08/19 To Bd. of Dir. -- AGENDA REPORT Item Number 3 Item Number -- Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: LAPTOP AND DESKTOP COMPUTER REPLACEMENT GENERAL MANAGER'S RECOMMENDATION A. Award a Purchase Order Contract to Zones, Inc. for the purchase of 131 HP computers, Specification No. E-2019-1051BD, for a total amount not to exceed $113,783; and B. Approve a contingency of $11,378 (10%). BACKGROUND The Orange County Sanitation District (Sanitation District) changed its standard computers to HP Elitebook X2 and X360 and EliteDesk 800 computers three years ago. Laptop and desktops are purchased with the longest warranties available, three-years and five-years, respectively. Replacement of the older computers was delayed to minimize impact on staff during the transition to the new models, as well as maximizing the value of existing assets. RELEVANT STANDARDS • Protect Orange County Sanitation District assets • Ensure the public’s money is wisely spent PROBLEM All Surface computers have exceeded their normal life expectancy and the oldest are failing at a higher rate than normal. The older HP desktops do not have the capacity to effectively run current software in use by the Sanitation District. PROPOSED SOLUTION Replace the oldest laptop and desktop computers with HP Elitebook X360 and EliteDesk 800 computers. TIMING CONCERNS Older computers are failing more frequently causing unscheduled downtime for Sanitation District staff. Page 2 of 2 RAMIFICATIONS OF NOT TAKING ACTION Computers will fail and staff will not have the tools to perform their jobs. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Replacement computers are normally purchased and deployed in small batches throughout the year to limit the time they are in inventory before deployment. This is done to maximize the warranty. Currently, Information Technology (IT) staff are seeking to replace many computers in a short amount of time. For this purchase, the Sanitation District’s Purchasing Division, in collaboration with the IT Division, administered a bidding process for this purchase (Specification No. E-2019-1051BD), obtaining competitive sealed bids from vendors in accordance with Section 2.02 of the Sanitation District's Purchasing Ordinance. The Sanitation District received responses from Zones, Inc.; Mvation Worldwide, Inc.; Saitech, Inc.; OM Office Supply Inc.; Southern Computer Warehouse, Inc.; and Graybar. The most responsive and responsible proposer was Zones, Inc., with the lowest bid of $113,783. Staff recommends selection of Zones, Inc. to provide 131 HP computers. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. (FY2018-19 Budget, Section 6, Page 36, Line item: Repairs & Maintenance). ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A Page 1 of 4 ADMINISTRATION COMMITTEE Meeting Date 05/08/19 To Bd. of Dir. 05/22/19 AGENDA REPORT Item Number 4 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST GENERAL MANAGER'S RECOMMENDATION A. Receive and file Orange County Sanitation District purchases made under the General Manager’s authority for the period of January 1, 2019 to March 31, 2019; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of January 1, 2019 to March 31, 2019: • DME - Expansion Joints • DRAKE CONTROLS - On-site Training for Woodward Governor Controls • ENVIRONMENTAL RESOURCES ASSOCIATES (ERA) - Quality Control Standards • ORANGE COUNTY SHERIFF’S DEPARTMENT - Law Enforcement and Security Services • OVIVO - Trickling Filter Clarifier Assessment and Repairs • SDT NORTH AMERICAN - On-site Training for Ultrasound Detectors • TPC TRAINING - On-site Electricity Training BACKGROUND Staff provides the Administration Committee and the Board of Directors quarterly reports of General Manager approved and executed purchases between $50,000 and $100,000; maintenance and repair Services Task Orders between $50,000 and $300,000; and additions to the pre-approved OEM Sole Source List. The list of additions to the pre-approved OEM Sole Source List displays the original equipment manufacturers (OEM) added this quarter that require sole source procurement to maintain, service, or replace equipment currently in operation at Orange County Sanitation District (Sanitation District) facilities because the parts and/or service can only be provided by the OEM or their designated representative. RELEVANT STANDARDS • Quarterly Financial Reporting • Ensure the public’s money is wisely spent Page 2 of 4 PRIOR COMMITTEE/BOARD ACTIONS December 2016 - Minute Order 12(b) authorized the General Manager to ratify additions or deletions to the OEM Sole Source list on the General Manager’s quarterly approved purchases agenda report. ADDITIONAL INFORMATION In accordance with Board purchasing policies, Ordinance No. OCSD-52, the General Manager has authority to approve and execute purchases between $50,000 and $100,000. Below is a summary of General Manager approved purchases, in amounts exceeding $50,000, for the third quarter of fiscal year 2018-19: Vendor Name Amount Department Description/Discussion BEC BUILDING ELECTRONIC CONTROLS INC $65,000.00 Operations & Maintenance Maintenance, Testing, and Repair of Fire Alarm Systems at Plant 1 and 2 3/1/19 to 2/29/20 Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 E&M ELECTRIC AND MACHINERY INC. DBA WONDERWARE WEST $70,135.00 Administrative Services Wonderware 2017 Historian License Upgrades for SCADA (Supervisory Control and Data Acquisition) System 2/8/19 to 11/15/19 Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 ENFOTECH & CONSULTING, INC. $70,347.00 Administrative Services iPAC (Information for Planning and Consultation) Support and Services 11/1/18 to 10/31/19 Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 J2 SCIENTIFIC, LLC $54,053.61 Environmental Services Purchase of a Gel Permeation Chromatography (GPC) Sample Clean-Up System for the Lab Approved CORF Budget FY 18/19 Sole Source Justification 2058 Reason: Unique Product/Service JAMISON ENGINEERING CONTRACTORS INC $94,707.89 Operations & Maintenance Main Street Pump Station Emergency Force Main Repair Sole Source Justification 2094 Reason: Emergency Page 3 of 4 Vendor Name Amount Department Description/Discussion LIEBERT CASSIDY WHITMORE $60,000.00 Human Resources Confidential Studies for Human Resources 7/1/19 to 6/30/20 Sole Source Justification 2019-1090 Reason: Unique Product/Service NATIONAL AUTO FLEET GROUP $83,227.49 Operations & Maintenance Purchase of a 2019 Ford F-550 Super Duty Weld Truck Approved CORF Budget FY 18/19 NJPA Contract # 120716-NAF in accordance with Ordinance OCSD-52, Section 2.03 (B) Cooperative Purchases NORTHSTAR CHEMICAL $74,592.00 Operations & Maintenance Purchase of Sulfuric Acid 93% Concentration 3/1/19 to 2/28/20 with 4 Optional 1-Year Renewal Periods Specification No. C-2019-1017 PERFORMANCE PIPELINE TECHNOLOGIES $60,000.00 Operations & Maintenance Secondary Contractor for Annual CCTV Sewer Inspection Services 2/1/19 to 1/31/20 with 4 Optional 1-Year Renewal Periods Specification No. S-2018-1001BD SUEZ TREATMENT SOLUTIONS, INC. $68,487.17 Operations & Maintenance Driveshaft Assembly for Climber Screen Channel #6 Board Approved OEM Sole Source List M.O. 8/23/17, Item 9 Additionally, in accordance with Board purchasing policies, Ordinance No. OCSD-52, the General Manager has authority to approve and execute maintenance and repair Services Task Orders between $50,000 and $300,000. Below is a summary of General Manager approved maintenance and repair Services Task Orders, in amounts exceeding $50,000, for the third quarter of fiscal year 2018-19: Vendor Name Amount Department Description/Discussion JAMISON ENGINEERING CONTRACTORS INC $65,375.00 Operations & Maintenance Plant 1 Primary Clarifier 3 Temporary Repairs (MP-619) Specification No. TOB-2019-1028 of Master Service Contract S-2018-942BD-5 Page 4 of 4 FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A Page 1 of 3 ADMINISTRATION COMMITTEE Meeting Date 05/08/19 To Bd. of Dir. 05/22/19 AGENDA REPORT Item Number 5 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: CONSOLIDATED FINANCIAL REPORT FOR THIRD QUARTER ENDED MARCH 31, 2019 GENERAL MANAGER'S RECOMMENDATION Receive and file the Orange County Sanitation District Third Quarter Financial Report for the period ended March 31, 2019. BACKGROUND Included in this consolidated report are the following quarterly financial reports for the period ended March 31, 2019: • Third Quarter Budget Review The Budget Review Summary provides the Directors, staff, and general public with a comprehensive overview of the financial results of the Orange County Sanitation District (Sanitation District) through the third quarter ended March 31, 2019. • Quarterly Treasurer’s Report This section reports on financial portfolio performance with respect to the Sanitation District’s funds. Both Long-Term and Liquid Operating Monies Portfolios are summarized. A performance summary table can be found on page 2 of this section. The report also contains information on the U.S. and global economic outlook from the Sanitation District’s investment manager, Chandler Asset Management. • Certificates of Participation Quarterly Report The report includes a summary of each outstanding debt issuance and a comparative chart illustrating the COP rate history. RELEVANT STANDARDS • Quarterly financial reporting ADDITIONAL INFORMATION The quarterly treasurer’s report contained within the Consolidated Financial Reports for the Third Quarter Ended March 31, 2019 is being submitted in accordance with the Sanitation District’s investment policy that requires the report be submitted to the governing body following the end of each quarter and includes the following information: Page 2 of 3 • Performance results in comparison with the ICE BAML 3-month treasury bill index for the liquid operating portfolio; and the ICE BAML Corp./Govt. 1-5 Year Bond index for the long-term portfolio as identified in the investment policy; and the time-weighted total rate of return for the portfolio for the prior three months, six months, nine months, twelve months, and since inception compared to the Benchmark returns for the same periods: • A listing of individual securities held at the end of each reporting period (see the detailed listings of each security contained within the report). • Cost and market values of the portfolios: Liquid Operating Long-Term Cost $108.0 M $502.3 M Market Value $108.5 M $506.2 M • Modified duration of the portfolio compared to Benchmark: Liquid Operating Long-Term District Policy < 0.50 < 5.00 Benchmark 0.16 2.53 Portfolio 0.27 2.39 • Dollar change in value of the portfolio for a one-percent (1%) change in interest rates: Liquid Operating – $291,563 Long-Term – $12,090,168 • None of the portfolios are currently invested in reverse repurchase agreements. • The percent of the Liquid Operating Monies portfolio maturing within 90 days: 30.0% Portfolio Performance Summary As of March 31, 2019 Liquid Operating Monies (%) Long-Term Operating Monies (%) Total Rate of Return Benchmark Total Rate of Return Benchmark 3 Months 0.63 0.60 1.51 1.42 6 Months 1.21 1.17 2.85 3.01 9 Months 1.73 1.66 3.12 3.22 12 Months 2.18 2.12 3.39 3.39 Annualized Since inception 30 Nov 2014 0.95 0.85 1.45 1.38 Page 3 of 3 • Average portfolio credit quality: Liquid Operating – AA+/Aa1 Long-Term – AA/Aa1 • Percent of portfolio with credit ratings below "A" by any rating agency, and a description of such securities: Liquid Portfolio – no exceptions Long-Term Portfolio – Percent of portfolio – 0.6% Cost Maturity Date Moody S&P Fitch SLMA 2008-9 A $ 14,804.19 4/25/2023 Baa3 A B AMRESCO Residential Securities 1999-1 $ 100,432.85 6/25/2029 Not Rated A+ BBB Morgan Stanley Note $3,200,848.00 7/28/2021 A3 BBB+ A • All investments are in compliance with this policy and the California Government Code, except for the following Lehman Brother holdings that the Sanitation District is pursuing collection through the bankruptcy court: Lehman Brothers Note-Defaulted $ 600,000 par value purchased 9/19/2008 Lehman Brothers Note-Defaulted $2,000,000 par value purchased 9/18/2008 • Sufficient funds are available for the Sanitation District to meet its operating expenditure requirements for the next six months. CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Consolidated Financial Report for the Third Quarter Ended March 31, 2019 (separate electronic file) Page 1 of 1 ADMINISTRATION COMMITTEE Meeting Date 05/08/19 To Bd. of Dir. -- AGENDA REPORT Item Number 6 Item Number -- Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: CAPITAL IMPROVEMENT PROGRAM PROPOSED BUDGET FOR FY 2019-20 GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND Staff will present the proposed Capital Improvement Program (CIP) budget to be included in the upcoming FY2019-20 Budget recommendation. RELEVANT STANDARDS • Protect Orange County Sanitation District assets • Ensure the public’s money is wisely spent ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A KM:sa Page 1 of 1 ADMINISTRATION COMMITTEE Meeting Date 05/08/19 To Bd. of Dir. -- AGENDA REPORT Item Number 7 Item Number -- Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: FY 2019-20 BUDGET UPDATE GENERAL MANAGER'S RECOMMENDATION Information Only BACKGROUND Provide an update and overview of the FY 2019-20 Proposed Budget including Revenues, Operating Expenditures, and Capital Improvement Program. Staff will make a brief presentation at the Committee meeting. The Budget Update, effective July 1 of this year, will be presented for re-adoption at the June 26, 2019 Board meeting. RELEVANT STANDARDS • Produce Operations and CIP budgets every two years with annual update PRIOR COMMITTEE/BOARD ACTIONS The FY 2018-19 and 2019-20 biennium budget was adopted on June 27, 2018. FINANCIAL CONSIDERATIONS The FY 2019-20 Budget Update being proposed for re-adoption on June 26, 2019 is to operate and maintain the Sanitation District facilities in a fiscally responsible manner. ATTACHMENTS The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • PowerPoint Presentation 4/30/2019 1 Proposed FY 2019-20 Budget Overview Administration Committee May 8, 2019 Overview • FY 2019-20 Update •2nd Year of 2-Year Adopted Budget • Stable Revenues • Expenses Include • Operating • Capital Improvement Program • Debt Service • Staffing – 4 New Positions (640 FTE) • No New Debt *All figures in millions unless otherwise noted 1 2 4/30/2019 2 REVENUE Where the Money Comes From Adopted Proposed FY 2018-19 FY 2019-20 • Fees & Charges $ 350.1 $ 346.4 • Property Taxes 99.6 96.1 • Interest 6.5 6.5 • Other Revenue 14.7 17.2 • Debt Proceeds 0.0 0.0 $ 470.9 $ 466.2 Fees & Charges $346.4 M 74.3%Property Taxes $96.1 M 20.6% Interest $6.5 M 1.4% Other Revenue $17.2 M 3.7% Operating Expenses $168.2 M41.6% Capital Improvement Program $153.0 M37.8% Debt Service $80.0 M19.8% Intradistrict Transfers$3.5 M 0.9% EXPENSES Where the Money Goes Adopted Proposed FY 2018-19 FY 2019-20 • Operating Expenses $ 161.2 $ 168.2 • Capital Improvement Program 174.5 153.0 • Debt Service 80.5 80.0 • Other Requirements 6.1 3.5 $ 422.3 $ 404.7 3 4 4/30/2019 3 OPERATING EXPENSES Category 2018-19 Adopted 2019-20 Adopted 2019-20 Proposed Salaries and Benefits $96.0 $98.2 $98.4 Contractual Expenses 25.2 22.1 22.0 Repairs and Maintenance 21.7 19.3 23.5 Operating Materials & Supplies 15.7 18.9 21.0 Utilities 7.5 9.0 9.3 Professional Services 5.4 4.6 5.6 Other Materials, Supplies, Services 5.3 4.2 4.3 Administrative Expenses 2.0 1.9 2.0 Training and Meetings 1.1 1.0 1.1 Research and Monitoring 1.1 1.1 1.1 Printing and Publications 0.3 0.3 0.3 Cost Allocation (20.1) (20.4) (20.4) Total Operating Expenses $161.2 $160.2 $168.2 $161.2 M $152.3 M $160.2 M $168.2 M 2018-19 Adopted 2018-19 Projected 2019-20 Adopted 2019-20 Proposed -5.5% +10.4% +5.0% Total FY 18-19 & FY 19-20 Adopted Budgets $321.4 Total FY 18-19 Projected & FY 19-20 Proposed Budgets $320.5 OPERATING EXPENSES Projected Adopted Update 18-19 19-20 19-20 Repairs & Maintenance $ 17.8 $ 19.3 $ 23.5 Materials & Services 14.5 15.8 19.8 Service Agreements 3.3 3.5 3.7 Operating Materials & Supplies $ 16.6 $ 18.9 $ 21.0 Chemical Coagulants 6.9 8.4 10.4 Odor Control 6.5 7.4 7.4 Disinfection Chemicals 0.2 0.3 0.2 Tools & Safety Equipment 1.1 0.9 1.1 Lab. Chem. & Supplies 0.6 0.6 0.6 Gas, Diesel & Oil 0.6 0.6 0.6 Other 0.7 0.7 0.7 5 6 4/30/2019 4 CAPITAL IMPROVEMENT PROGRAM CIP Categories Treatment Projects 131.0$ Collection Projects 42.0 Equipment 3.0 FY 2019-20 CIP Authority 176.0 CIP Savings & Deferrals (23.0) FY 2019-20 Net CIP 153.0$ 10-Year Net CIP Outlay $ 2.8 Billion Rehabilitation and Replacement 54% Strategic Initiatives 26% Additional Capacity 11% Regulatory 9% DEBT SERVICE Summary of COP Issues: May 2010A New Money $ 80,000,000 August 2014A Refunding 71,330,000 November 2010C New Money 157,000,000 February 2015A Refunding 127,510,000 September 2011A Refunding 75,370,000 March 2016A Refunding 145,880,000 February 2012A Refunding 100,645,000 February 2017A Refunding 66,370,000 August 2012B Refunding 46,475,000 November 2018A Refunding 102,200,000 Total Outstanding COP Balance 7/1/19 $ 972,780,000 FY 2019-20 Debt Service $80.0 Million 7 8 4/30/2019 5 SUMMARY Revenue Proposed FY 2019-20 Fees & Charges $ 346.4 Property Taxes 96.1 Interest 6.5 Other Revenue 17.2 $ 466.2 Expenses Proposed FY 2019-20 Operating Expenses $ 168.2 Capital Improvement Program 153.0 Debt Service 80.0 Other Requirements 3.5 $ 404.7 Questions? 9 10 ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS ACWA Association of California Water Agencies LAFCO Local Agency Formation Commission RWQCB Regional Water Quality Control Board APWA American Public Works Association LOS Level Of Service SARFPA Santa Ana River Flood Protection Agency AQMD Air Quality Management District MGD Million Gallons Per Day SARI Santa Ana River Interceptor ASCE American Society of Civil Engineers MOU Memorandum of Understanding SARWQCB Santa Ana Regional Water Quality Control Board BOD Biochemical Oxygen Demand NACWA National Association of Clean Water Agencies SAWPA Santa Ana Watershed Project Authority CARB California Air Resources Board NEPA National Environmental Policy Act SCADA Supervisory Control And Data Acquisition CASA California Association of Sanitation Agencies NGOs Non-Governmental Organizations SCAP Southern California Alliance of Publicly Owned Treatment Works CCTV Closed Circuit Television NPDES National Pollutant Discharge Elimination System SCAQMD South Coast Air Quality Management District CEQA California Environmental Quality Act NWRI National Water Research Institute SOCWA South Orange County Wastewater Authority CIP Capital Improvement Program O & M Operations & Maintenance SRF Clean Water State Revolving Fund CRWQCB California Regional Water Quality Control Board OCCOG Orange County Council of Governments SSMP Sewer System Management Plan CWA Clean Water Act OCHCA Orange County Health Care Agency SSO Sanitary Sewer Overflow CWEA California Water Environment Association OCSD Orange County Sanitation District SWRCB State Water Resources Control Board EIR Environmental Impact Report OCWD Orange County Water District TDS Total Dissolved Solids EMT Executive Management Team OOBS Ocean Outfall Booster Station TMDL Total Maximum Daily Load EPA US Environmental Protection Agency OSHA Occupational Safety and Health Administration TSS Total Suspended Solids FOG Fats, Oils, and Grease PCSA Professional Consultant/Construction Services Agreement WDR Waste Discharge Requirements gpd gallons per day PDSA Professional Design Services Agreement WEF Water Environment Federation GWRS Groundwater Replenishment System POTW Publicly Owned Treatment Works WERF Water Environment & Reuse Foundation ICS Incident Command System ppm parts per million WIFIA Water Infrastructure Finance and Innovation Act IERP Integrated Emergency Response Plan PSA Professional Services Agreement WIIN Water Infrastructure Improvements for the Nation Act JPA Joint Powers Authority RFP Request For Proposal WRDA Water Resources Development Act ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS – A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS – The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD) – The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. BIOGAS – A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. 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 farmland 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 (D/T) – The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG) – 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 SYSTEM (GWRS) – 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 per day of drinking quality water to replenish the local groundwater supply. LEVEL OF SERVICE (LOS) – Goals to support environmental and public expectations for performance. N-NITROSODIMETHYLAMINE (NDMA) – A N-nitrosamine 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 and Water Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation 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) – A municipal wastewater treatment plant. SANTA ANA RIVER INTERCEPTOR (SARI) LINE – A regional brine line designed to convey 30 million gallons per day 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 runoff. 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. The Orange County Sanitation District’s service area is in the Santa Ana River Watershed.