HomeMy WebLinkAbout06-08-2016 Administration Committee Agenda Orange County Sanitation District Wednesday,June 8, 2016
Regular Meeting of the F' 5:00 P.M.
ADMINISTRATION Administration Building
COMMITTEE Board Room
10844 Ellis Avenue
Fountain Valley, CA
714 593-7433
AGENDA
CALL TO ORDER:
PLEDGE OF ALLEGIANCE:
DECLARATION OF QUORUM: (Clerk of the Board)
PUBLIC COMMENTS: If you wish to address the 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.
REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES:
CONSENT CALENDAR: The Consent Calendar Items are considered to be routine and will be
enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent
Calendar for separate discussion will be considered in the regular order of business.
1. APPROVAL OF MINUTES (Clerk of the Board)
RECOMMENDATION: Approve Minutes of the May 11, 2016 Administration
Committee Meeting.
06/06/16 Administration Committee Agenda Page 1 of4
2. IBM TIVOLI MAXIMO AND WEBSPHERE (ENTERPRISE ONE) ANNUAL
SUBSCRIPTION AND SUPPORT (Lorenzo Tyner)
RECOMMENDATION: Recommend to the Board of Directors to:
A. Authorize purchase of an annual licensing and maintenance agreement for
IBM Maximo and WebSphere software and support using Dataskill, Inc. in
the amount of$180,166.41 for one year; and
B. Approve a contingency of$36,033 (20%)for additional licenses identified in
the current Maximo implementation plan.
3. FY 2016-17 USE CHARGES FOR SANTA ANA WATERSHED PROJECT
AUTHORITY (Lorenzo Tyner)
RECOMMENDATION: Recommend to the Board of Directors to: Adopt
Resolution No. OCSD 16-XX entitled, "A Resolution of the Board of Directors of
the Orange County Sanitation District Establishing Use Charges for the
FY 2016-17 Pursuant to the Wastewater Treatment and Disposal Agreement with
the Santa Ana Watershed Project Authority."
4. ORANGE COUNTY REGISTER — CLASSIFIED & LEGAL ADVERTISEMENTS
(Lorenzo Tyner)
RECOMMENDATION:
A. Approve Change Order No. 4 to Blanket Purchase Order 105121-OB with
the Orange County Register for Classified and Legal advertisements, for
the period July 1, 2014 through June 30, 2016, for an additional amount of
$20,001, for a total amount not to exceed $120,000; and
B. Approve Blanket Purchase Order with the Orange County Register for
Classified and Legal advertisements, for the period of July 1, 2016 through
June 30, 2017, for a total amount not to exceed $150,000.
5. GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2016-17 (Lorenzo Tyner)
RECOMMENDATION: Recommend to the Board of Directors to: Adopt
Resolution No. OCSD 16-XX entitled, "A Resolution of the Board of Directors of
the Orange County Sanitation District Establishing the Annual Appropriations Limit
for Fiscal Year 2016-17, for the District in accordance with the Provisions of
Division 9 of Title 1 of the California Government Code."
06/06/16 Administration Committee Agenda Page 2 of 4
NON-CONSENT:
6. PROPOSED FY 2016-17 AND 2017-18 BUDGET (Lorenzo Tyner)
RECOMMENDATION: Recommend to the Board of Directors to: Approve
proposed Operating, Capital, Debt/COP Service and Self-Insurance Budgets for
FY 2016-17 and 2017-18 as follows:
2016-17 2017-18
Net Operations, Maintenance &Working Capital $146,356,520 $149,854,390
Worker's Compensation Self Insurance 1,090,000 1,130,000
General Liability and Property Self-Insurance 1,390,000 1,450,000
Net Capital Improvement Program 171,290,000 137,989,000
Debt/COPService 86,664,000 83,119,000
Reduction of Long Term Obligations 65,000,000 -
Intra-District Joint Equity Purchase/Sale(') 3,400,000 1,700,000
TOTAL $475.190.520 $375.242.390
MCash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated
Revenue Area 15 (RA15).
INFORMATION ITEMS:
7. WORKFORCE PLANNING (Celia Chandler)
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IF ANY:
ADJOURNMENT:
The next Administration Committee meeting is scheduled for Wednesday, July 13, 2016
at 5:00 p.m.
06/0a/16 Administration Committee Agenda Page 3 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
Clerk of the Board
(714)593-7433
kloreidlocsd.com
For any questions on the agenda, Committee members may contact staff at:
General Manager James Herberg (714)593-7300 iherbem(&.ocsd.com
Assistant General Manager Bob Ghirelli (714)593-7400 rohirelli0ocsd.com
Director of Finance and Lorenzo Tyner (714)593-7550 Itvneraocsd.com
Administrative Services
Director of Human Resources Celia Chandler 714 593-7202 cchandler ocsd.com
06106/16 Administration Committee Agenda Page 4 of 4
ITEM NO. 1
MINUTES OF THE
ADMINISTRATION COMMITTEE
Orange County Sanitation District
Wednesday, May 11, 2016 at 5:00 P.M.
A regular meeting of the Administration Committee of the Orange County Sanitation
District was called to order by Committee Chair Curry on May 11, 2016 at 5:00 p.m. in the
Administration Building of the Orange County Sanitation District.
Director Choi led the Flag Salute.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
Keith Curry, Chair Jim Herberg, General Manager
Lucille Kring, Vice-Chair Bob Ghirelli, Assistant General Manager
Steven Choi Celia Chandler, Director of Human Resources
Diana Fascenelli (Alternate) Rob Thompson, Director of Engineering
Jim Ferryman Lorenzo Tyner, Director of Finance &
Cecilia Hupp (Alternate) Administrative Services
Jim Katapodis Ed Torres, Director of Operations & Maintenance
Peter Kim Tina Knapp, Deputy Clerk of the Board
Mark Murphy (Alternate) Jim Colston
Joy Neugebauer Alfredo Garcia
Sal Tinajero Randall Kleinman
John Nielsen, Board Chair Rebecca Long
Greg Sebourn, Board Vice-Chair Mark Manzo
Jeff Mohr
COMMITTEE MEMBERS ABSENT: Roya Sohanaki
None. John Swindler
Brent W ride
OTHERS PRESENT:
Brad Hogin, General Counsel
Dennis Mulqueeney, Alliant Insurance Services
Karen Worden, Alliant Insurance Services
PUBLIC COMMENTS:
None.
REPORT OF COMMITTEE CHAIR:
Committee Chair Curry did not provide a report.
05/11/2016 Administration Committee Minutes Page 1 016
REPORT OF GENERAL MANAGER:
General Manager Jim Herberg reminded the Committee of the upcoming Honor Walk
induction ceremony being held on May 25, 2016 at 4:00 p.m. in front of the Administration
Building.
REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES:
Director of Finance and Administrative Services Lorenzo Tyner did not provide a report.
CONSENT CALENDAR:
1. APPROVAL OF MINUTES (Clerk of the Board)
MOVED, SECONDED AND DULY CARRIED TO: Approve Minutes of the
April 13, 2016 Administration Committee Meeting.
AYES: Choi, Curry, Ferryman, Katapodis, Kim, Kring, Neugebauer,
and Seboum
NOES: None
ABSTENTIONS: Fascenelli (Alternate) and Hupp (Alternate)
ABSENT: M. Murphy (Alternate), Nielsen, and Tinajero
2. DESIGNATION OF APPLICANT'S AGENT FOR DISASTER RELIEF
(Robert Ghirelli)
MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of
Directors to: Adopt Resolution No. OCSD 16-XX, entitled, "A Resolution of the
Board of Directors of the Orange County Sanitation District authorizing the General
Manager, the Assistant General Manager, or the Director of Operations and
Maintenance to Execute State Office of Emergency Services and/or Federal
Emergency Management Agency Documents and Relevant Permit Applications
for Present and Future Disaster Relief Applications; and Repealing Resolution No.
OCSD 16-05."
AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Hupp (Alternate),
Katapodis, Kim, Kring, Neugebauer, and Sebourn
NOES: None
ABSTENTIONS: None
ABSENT: M. Murphy (Alternate), Nielsen, and Tinajero
O511112016 Administration Committee Minutes Page 2 of 6
3. CONSOLIDATED FINANCIAL REPORT 3RD QUARTER ENDING
MARCH 31, 2016 (Lorenzo Tyner)
MOVED, SECONDED AND DULY CARRIED TO: 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, 2016.
AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Hupp
(Alternate), Katapodis, Kring, Neugebauer, and Sebourn
NOES: None
ABSTENTIONS: Kim
ABSENT: M. Murphy (Alternate), Nielsen, and Tinajero
4. GENERAL MANAGER APPROVED PURCHASES (Lorenzo Tyner)
MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of
Directors to: Receive and file Orange County Sanitation District purchases made
under the General Manager's authority for the period of January 1, 2016 — March
31, 2016.
AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Hupp
(Alternate), Katapodis, Kim, Kring, Neugebauer, and Sebourn
NOES: None
ABSTENTIONS: None
ABSENT: M. Murphy (Alternate), Nielsen, and Tinajero
NON-CONSENT:
5. COOPERATIVE PROCUREMENT WITH THE U.S. GENERAL SERVICES
AGREEMENT (GSA) (Lorenzo Tyner)
Director of Finance and Administrative Services Lorenzo Tyner introduced this
item and indicated that the purchases outlined are routine and this is being
presented for approval due to the approval amount.
MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of
Directors to: Approve purchases of information technology hardware, software,
services, and licensing & maintenance agreements using the U.S. General
Services Agreement (GSA) IT Schedule 70 through the contract expiration date,
December 31, 2019, for a total amount not to exceed $2,500,000, in accordance
with OCSD Ordinance OCSD47, Section 2.03(B) Cooperative Purchases.
AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Hupp (Alternate),
Katapodis, Kim, Kring, Neugebauer, and Sebourn
NOES: None
ABSTENTIONS: None
ABSENT: M. Murphy (Alternate), Nielsen, and Tinajero
05111/2016 Administration Committee Minutes Page 3 of 6
6. 2016 BENEFITS PROGRAM (Celia Chandler)
Director of Human Resources Celia Chandler introduced this item and provided a
brief overview of the background of the Sanitation District's healthcare and welfare
insurance benefits and timing of payment of the benefits.
MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Approve funds to make payments to the healthcare and welfare insurance
vendors listed on the following table for the months of July 2016 through
December 2016, at which time all benefits will be aligned with the calendar
year.
No. Vendor Plan T e Not To Exceed
1 Em to ee Berefd Specialists EBS Medical, Dental,Vision, Employee Assistance Program $ 5,650,000
2 Prudential Basic Life, Short-and Long-Term Disability $ 310,000
3 The Standard Executive Disabilfty 1 $ 15,000
TOTAL $ 5,975,000
B. Authorize pre-payment for the July 2016 EBS invoice prior to July 1, 2016
to comply with vendor requirement of payment one month in advance; and
C. Authorize reallocation in the already approved amount of$115,000 from the
FY 2015/16 EBS line item to the Prudential line item.
AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Hupp
(Alternate), Katapodis, Kim, Kring, Neugebauer, and Sebourn
NOES: None
ABSTENTIONS: None
ABSENT: M. Murphy (Alternate), Nielsen, and Tinajero
7. 2016-17 OPERATIONAL PROPERTY-LIABILITY INSURANCE RENEWALS
(Celia Chandler)
Director of Human Resources Celia Chandler provided a brief overview of this item
and introduced Dennis Mulqueeney from Alliant Insurance Services who spoke
about the renewal rates presented. Mr. Mulqueeney responded to questions from
the Committee as to the renewal process.
Director Tinajero arrived at 5:05 p.m.
MOVED. SECONDED AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Approve not-to-exceed numbers as follows, with the understanding that the
Orange County Sanitation District's insurance broker will continue to negotiate with
insurers to seek the lowest possible premiums prior to the expiration date of the
05/11/2016 Administration Committee Minutes Page<d 6
current major insurance policies:
1. Excess liability insurance - $460,506.
2. Excess workers compensation insurance -a rate of$0.332 per$100 of payroll
(estimated premium at $218,000).
3. Property and Boiler& Machinery combined -$725.595.
4. Earthquake insurance - $81,131.
AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Hupp (Alternate),
Katapodis, Kim, Kring, Neugebauer, Sebourn, and Tinajero
NOES: None
ABSTENTIONS: None
ABSENT: M. Murphy (Alternate) and Nielsen
Board Chair Nielsen arrived at 5:12 p.m.
INFORMATION ITEMS:
8. CAPITAL IMPROVEMENT PROGRAM (Rob Thompson)
Director of Engineering Rob Thompson provided an informative PowerPoint
presentation regarding the FY 2016-17 and 2017-18 Capital Improvement
Program (CIP) including: annual budget update process, drivers for new CIP
projects, condition assessment program, CCTV inspections, proposed 10-year
CIP spending, budget increases and decreases, project cancellations, and new
projects and their estimated cost. Mr. Thompson responded to questions from the
Committee regarding details of timing on upcoming projects and specifics of
several projects.
Alternate Director Murphy arrived at 5:18 p.m.
9. PRETREATMENT PROGRAM OVERVIEW (Robert Ghirelli)
Assistant General Manager Bob Ghirelli introduced Jim Colston, Environmental
Compliance Regulatory Affairs Manager, who provided a PowerPoint presentation
and an overview of the Source Control Program, also known as the Pretreatment
Program. The presentation included topics such as how the Sanitation District
ensures discharge limits are being met, the non-industrial program, effectiveness
of source control, protection of the Groundwater Replenishment
System/investigations, and pretreatment program awards. Mr. Colston provided
each Director with one of the Sanitation District's proactive resident outreach
program pieces, a door hanger explaining the proper method for discarding
grease, which includes a plastic lid for use in discarding grease. Mr. Colston
responded to questions from the Committee regarding specific requirements for
discharge programs.
O5/11/2016 Administration Committee Minutes Page 5 a 6
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IF ANY:
Director Choi invited everyone to the Irvine Korean Cultural Festival on Saturday,
May 141h from 10:00 a.m. — 5:00 p.m. at the Irvine Civic Center. General Manager
Herberg indicated that the Sanitation District will have a booth at the event.
ADJOURNMENT:
Committee Chair Curry declared the meeting adjourned at 6:06 p.m. to the next regularly
scheduled meeting of Wednesday, June S, 2016 at 5:00 p.m.
Submitted by:
Tina Knapp
Deputy Clerk of the Board
05/11/2016 Administration Committee Minutes Page 6 a 6
ADMINISTRATION COMMITTEE Meeting Date TOBd.Of Dir.
06/OB/16 06/22/16
AGENDA REPORT I em Number I em Number
z
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: IBM TIVOLI MAXIMO AND WEBSPHERE (ENTERPRISEONE) ANNUAL
SUBSCRIPTION AND SUPPORT
GENERAL MANAGER'S RECOMMENDATION
A. Authorize purchase of an annual licensing and maintenance agreement for IBM
Maximo and WebSphere software and support using Dataskill, Inc. in the amount of
$180,166.41 for one year; and
B. Approve a contingency of $36,033 (20%) for additional licenses identified in the
current Maximo implementation plan.
BACKGROUND
IBM Maximo was implemented in January 2015 and is used by Operations and
Maintenance 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, our Financial Management system.
In order to properly maintain and repair Orange County Sanitation District's (Sanitation
District)facilities, the Information Technology(IT)division has 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
• Maintain and support Enterprise Asset Management system and Financial
Management system
• Investment proposals and decisions based on clearly defined standards
Page 1 of 3
PROBLEM
The annual software maintenance for IBM Maximo and IBM WebSphere will expire on
June 30, 2016. The software maintenance provides Sanitation District staff with support
from IBM and software updates to enhance and correct issues with the software.
PROPOSED SOLUTION
Renew the annual software maintenance for IBM Maximo and IBM WebSphere before
June 30, 2016. Not renewing the support will cause the Sanitation District to be ineligible
to receive support and software enhancement from IBM.
TIMING CONCERNS
The renewal has to be completed prior to June 30, 2016.
RAMIFICATIONS OF NOT TAKING ACTION
Not renewing the annual software maintenance will cause the Sanitation District to lose
support and software enhancement from IBM. The Sanitation District will also need to
repurchase all the software at a cost in excess of one million dollars.
PRIOR COMMITTEE/BOARD ACTIONS
June 2015 - Board Award M.O. 6/24/2015, Item No. 8
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
(Bid# 5-2016-784), obtaining competitive sealed bids from vendors in accordance with
Section 2.02 of Ordinance OCSD-47.
The Sanitation District received responses from Dataskill, Inc. and ESCgov, Inc.
The most responsive and responsible proposer was Dataskill, Inc. with the lowest bid of
$180,166.41. Staff recommends selection of Dataskill, Inc. to provide IBM Tivoli Maximo
and WebSphere (EnterpriseOne) annual subscription and support.
CEQA
N/A
Page 2 of 3
FINANCIAL CONSIDERATIONS
The items purchased through the process are budgeted in the annual Joint Operating
Budget.
ATTACHMENT
The following attechment(s)maybe viewed on-line at the OCSD website(www.ocsd.com)with the complete
agenda package and attachments:
N/A
Page 3 of 3
ADMINISTRATION COMMITTEE Melting Dat0 TOBE.Of Dir.
06/08/16 O6/22/16
AGENDA REPORT Item Item Number
3
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: FY 2016-17 USE CHARGES FOR SANTA ANA WATERSHED PROJECT
AUTHORITY
GENERAL MANAGER'S RECOMMENDATION
Adopt Resolution No. OCSD 16-XX entitled, "A Resolution of the Board of Directors of
the Orange County Sanitation District Establishing Use Charges for the FY 2016-17
Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana
Watershed Project Authority."
BACKGROUND
Currently, Orange County Sanitation District (Sanitation District) invoices the Santa Ana
Watershed Project Authority (SAWPA) on a quarterly basis for the wastewater discharge
we receive from the Santa Ana River Interceptor(SARI) line. Annually, the rates for flow,
biochemical oxygen demand (BOD), and total suspended solids (TSS) are calculated
based upon the fiscal year budget for treatment and disposal costs and the 1996
Wastewater Treatment and Disposal agreement. The rates calculated for each
constituent for FY 2016-17 for wastewater discharge are:
FLOW $175.17
BOD $278.14
TSS $387.85
The FY 2016-17 rates are a 2.1 percent decrease from the FY 2015-16 rates due to a 2.1
percent decrease in the treatment and disposal costs in the proposed FY 2016-17 Budget.
These rates are separate from the rates charged for additional capacity purchases by
SAWPA.
RELEVANT STANDARDS
• Sound engineering and accounting practices, complying with local, state and
federal laws
• Stable rates, no large unforeseen rate increases
Page 1 of 2
TIMING CONCERNS
The rates should be effective for July 1s' of FY 2016-17.
RAMIFICATIONS OF NOT TAKING ACTION
The rates would not be established for FY 2016-17 for cost recovery for treatment and
disposal of SAWPA's wastewater discharge.
PRIOR COMMITTEE/BOARD ACTIONS
June 2015 — Adopted Resolution No. OCSD 15-13 Establishing Use Charges for
the FY 2015-16 Pursuant to the Wastewater Treatment and Disposal Agreement
with the Santa Ana Watershed Project Authority.
ADDITIONAL INFORMATION
N/A
CEQA
N/A
FINANCIAL CONSIDERATIONS
N/A
ATTACHMENT
The following affachment(s)is included in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.coml with the complete agenda package:
Draft Resolution No. OCSD 16-XX
Page 2 of 2
RESOLUTION NO. OCSD 16-XX
A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE
COUNTY SANITATION DISTRICT ESTABLISHING USE
CHARGES FOR THE 2016-17 FISCAL YEAR PURSUANT TO
THE WASTEWATER TREATMENT AND DISPOSAL
AGREEMENT WITH THE SANTA ANA WATERSHED PROJECT
AUTHORITY ("SAW PA")
WHEREAS, the Board of Directors has approved the Wastewater Treatment and
Disposal Agreement with the SANTA ANA WATERSHED PROJECT AUTHORITY
("SAWPA"); and,
WHEREAS, said agreement provides for payment of Disposal Costs for the measured
and sampled flow of Wastewater discharged from SAWPA's SARI Service Area to Districts'
facilities; and,
WHEREAS, said agreement provides for adjustment of said Disposal Costs on an
annual basis.
NOW, THEREFORE, The Board of Directors of the Orange County Sanitation District,
DOES HEREBY RESOLVE, DETERMINE, AND ORDER:
Section 1. That pursuant to Section C4 of the Wastewater Treatment and Disposal
Agreement, the 2016-17 fiscal year charges for Disposal Costs are hereby established as
follows:
For Flow: $ 175.17 per million gallons of flow
For Biochemical Oxygen Demand: $ 278.14 per thousand pounds
For Total Suspended Solids: $ 387.85 per thousand pounds
PASSED AND ADOPTED at a regular meeting of the Board of Directors held
June 22, 2016.
John Nielsen
Board Chair
ATTEST:
Kelly A. Lore
Clerk of the Board
OCSD 16-XX-1
STATE OF CALIFORNIA )
ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation
District, do hereby certify that the foregoing Resolution No. OCSD 16-XX was passed
and adopted at a regular meeting of said Board on the 22nd day of June 2016, by
the following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official
seal of Orange County Sanitation District this 22nd day of June 2016.
Kelly A. Lore
Clerk of the Board of Directors
Orange County Sanitation District
OCSD 16-XX-2
ADMINISTRATION COMMITTEE Meeting Dare To ad.ofDir.
06/08,16 —
AGENDA REPORT Item Number Item Number
a
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance & Administrative Services
SUBJECT: ORANGE COUNTY REGISTER— CLASSIFIED & LEGAL
ADVERTISEMENTS
GENERAL MANAGER'S RECOMMENDATION
A. Approve Change Order No. 4 to Blanket Purchase Order 105121-OB with the
Orange County Register for Classified and Legal advertisements, for the period
July 1, 2014 through June 30, 2016,for an additional amount of$20,001,fora total
amount not to exceed $120,000; and
B. Approve Blanket Purchase Order with the Orange County Register for Classified
and Legal advertisements, for the period July 1, 2016 through June 30, 2017, for
a total amount not to exceed $150,000.
BACKGROUND
The Orange County Sanitation District (Sanitation District) is required by law or practice
to publish bid opportunities for construction projects, design, and engineering-related
agreements. In accordance with Public Contract Code Section 20783, construction
contracts are required to be advertised in a newspaper of general circulation in the
District, with two postings, no less than five days apart. The Sanitation District uses the
Orange County Register for its advertisements. The Sanitation District also utilizes the
Orange County Register to publish Legal Notices for the Clerk of the Board, Planning
Division, Environmental Compliance requirements, and select employment ads.
RELEVANT STANDARDS
• Ordinance No. OCSD47, Section 1.07 (A), Section 7.01 (B)
• Public Contract Code Sections 20783 through 20784 (sanitation districts)
PROBLEM
Increases in our public advertising volume, in addition to increased statutory content,
have exhausted Blanket Purchase Order 105121-OB. Therefore, the Contracts,
Purchasing & Materials Management Division is requesting an additional $20,001 to be
added to the Purchase Order to cover outstanding and future invoices through
June 30, 2016. Blanket Purchase Order 105121-OB has increased in volume for
advertising of Engineering Services when compared with the prior two-year Blanket
Purchase Order 104478-OB as follows:
Page 1 of 2
Type of Advertisement FY 12/13 - 13/14 FY 14115 - 15116
(PO# 104478-OB) (PO# 105121-OB)
Public Works Construction 21 20
Engineering Consultants 11 21
Total 32 41
PROPOSED SOLUTION
The Sanitation District must comply with Public Contract Code Section 20783; therefore,
we must add $20,001 to Blanket Purchase Order 105121-OB with the Orange County
Register to pay for outstanding and future invoices through June 30, 2016. Staff is
working with General Counsel to evaluate other advertising options to reduce costs,
including increased usage of the Sanitation District's online bid system.
TIMING CONCERNS
The current Blanket Purchase Order 105121-OB will expire on June 30, 2016.
RAMIFICATIONS OF NOT TAKING ACTION
A lapse in service will put the Sanitation District at risk of not being in compliance with
Public Contract Code Section 20783. Outstanding invoices cannot currently be paid, and
after a designated period of time, this can affect the ability to advertise.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted in Capital Improvement Program budgets
(Section 8) and in divisional Notices and Ads (Line item: Section 5, Page 6).
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the
complete agenda package:
N/A
Page 2 of 2
ADMINISTRATION COMMITTEE M'06/1 Dace TO Bd.O [Mr.
6/OB/16 06/22/16
AGENDA REPORT I em Number Item Number
s
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2016-17
GENERAL MANAGER'S RECOMMENDATION
Adopt Resolution No. OCSD 16-XX entitled, "A Resolution of the Board of Directors of
the Orange County Sanitation District Establishing the Annual Appropriations Limit for
Fiscal Year 2016-17, for the District in accordance with the Provisions of Division 9 of
Title 1 of the California Government Code."
BACKGROUND
This routine annual action adopts a resolution establishing the spending limit for
"proceeds of taxes" in accordance with Article XIII B of the Constitution of the State of
California (Section 7910 of the Government Code). The Sanitation District's annual
appropriations are well below the limit.
In 1979, Proposition 4 (the Gann Initiative)was approved adding Article XIII B to the State
Constitution. The provisions of this article place limits on the amount of revenue that can
be appropriated by all entities of government. This initiative was designed to constrain
government expenditures by placing an annual limit on jurisdictions' revenue and
appropriation growth. The Appropriation Limit is based on actual appropriations during
the 1978-1979 fiscal year, as increased each year using specified population and
inflationary growth factors. This annual allowance growth is linked to changes in
population and cost of living. The passage of Proposition 111 in June 1990 amended
Article XIIIB, making changes in the base year upon which the appropriations limit is
based, establishing new cost of living factors and new population factors for use by local
governments, and increasing appropriations not subject to the limit (primarily qualified
capital outlay projects). The financial constraints of Article XIII B apply to the State, all
cities, counties, special districts and all other political subdivisions.
RELEVANT STANDARDS
Produce Operations and CIP budgets every two years with annual update
PROBLEM
Article XIII B of the State Constitution places limits on the amount of revenue that can be
appropriated by all entities of government.
Page 1 of 2
PROPOSED SOLUTION
Approval of the proposed resolution establishing the annual appropriations limit for fiscal
year 2016-17 in accordance with the provisions of Division 9 of Title 1 of the California
Government Code.
TIMING CONCERNS
The proposed two-year budget, effective July 1a' of this year, will be finalized and
presented to the Board for adoption in June. The appropriations limit resolution needs to
be approved in conjunction with the budget.
RAMIFICATIONS OF NOT TAKING ACTION
The District will not be able to carry out its financial fiduciary duties beyond June 30, 2016.
ATTACHMENTS
The following attachment(s) is included in hard copy and may also be viewed on-line at the OCSD
website(g5U.ocsd.coml with the complete agenda package:
• Draft Resolution No. OCSD 16-XX
Page 2 of 2
RESOLUTION NO. OCSD 16-XX
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
ORANGE COUNTY SANITATION DISTRICT ESTABLISHING
THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR
2016-17 FOR THE DISTRICT IN ACCORDANCE WITH THE
PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE
CALIFORNIA GOVERNMENT CODE
WHEREAS, Article XIII B of the Constitution of the State of California as
proposed by the Initiative Measure approved by the people at the special statewide
election held on November 6, 1979, provides that the total annual appropriations limit of
each local government agency shall not exceed the appropriations limit of such entity for
the prior year, adjusted for changes in the cost of living and population, except as
otherwise specifically provided for in said Article; and,
WHEREAS, the State Legislature added Division 9 (commencing with Section
7900) to Title 1 of the Government Code of the State of California to implement Article
XIII B of the California Constitution; and,
WHEREAS, Section 7910 of the Government Code provides that each year the
governing body of each local jurisdiction shall, by resolution, establish its appropriations
limit for the following fiscal year pursuant to Article XIII B at a regularly-scheduled meeting
or a noticed special meeting and that fifteen (15) days prior to such meeting,
documentation used in the determination of the appropriations limit shall be available to
the public; and,
WHEREAS, Section 7902 (a) of the Government Code sets forth the method for
determining the appropriations limit for each local jurisdiction for the 2016-17 fiscal year;
and,
WHEREAS, the Board of Directors wishes to establish the appropriations limit
for fiscal year 2016-17 for the District.
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1: That it is hereby found and determined that the documentation used
in the determination of the appropriations limit for the Orange County Sanitation District,
for fiscal year 2016-17, was available to the public in the Finance Department of said
District at least fifteen (15) days prior to this date.
OCSD 16-XX-1
Section 2: That the appropriations limit for fiscal year 2016-17 for the Orange
County Sanitation District, as established in accordance with Section 7902(b) of the
California Government Code is $101,767,000 which sum is within the maximum
authorized spending limitation for fiscal year 2016-17.
Section 3: That the Board of Directors of the Orange County Sanitation District,
has determined that the percent change in California per capita personal income from the
preceding year would be the cost of living factor to be used and the weighted average
population change of the cities within the District would be the population factor to be
used in calculating the Orange County Sanitation Districrs appropriations limit for the
Fiscal Year 2016-17.
Section 4: The determination of the appropriation limit is based upon the best
and most complete information available at this time. The District reserves the right to
review and re-establish a new and different limit in the event that it subsequently
determines that a modification of the limitation amount is appropriate.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held
June 22, 2016.
John Nielsen
Chairman of the Board
ATTEST:
Kelly A. Lore
Clerk of the Board
OCSD 16-XX-2
STATE OF CALIFORNIA )
ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation
District, do hereby certify that the foregoing Resolution No. OCSD 16-XX was passed and
adopted at a regular meeting of said Board on the 22nd day of June 2016, by the
following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal
of Orange County Sanitation District this 22nd day of June, 2016.
Kelly A. Lore
Clerk of the Board of Directors
Orange County Sanitation District
OCSD 16-XX-3
ADMINISTRATION COMMITTEE Meetinghe To Daad.of Dir.
06/OB/16 06/22/16
AGENDA REPORT I em Number Rem Number
6
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: PROPOSED FY 2016-17 AND 2017-18 BUDGET
GENERAL MANAGER'S RECOMMENDATION
Approve proposed Operating, Capital, Debt/COP Service and Self-Insurance Budgets for
FY 2016-17 and 2017-18 as follows:
2016-17 2017-18
Net Operations, Maintenance &Working Capital $146,356,520 $149,854,390
Worker's Compensation Self Insurance 1,090,000 1,130,000
General Liability and Property Self-Insurance 1,390,000 1,450,000
Net Capital Improvement Program 171,290,000 137,989,000
Debt/COPService 86,664,000 83,119,000
Reduction of Long Term Obligations 65,000,000 -
Intra-District Joint Equity Purchase/Sale(') 3,400,000 1,700,000
TOTAL E475.190.520 $375.242.390
(')Cash to/from Revenue Area 14 (RA14) in exchange for capital assets
to/from Consolidated Revenue Area 15 (RA15).
BACKGROUND
The FY 2016-17 and 2017-18 Proposed Budget is enclosed for the Committee's
consideration. The Budget has been presented to the Operations Committee at the
regular June meeting in order to allow each Standing Committee an opportunity to review
the proposal prior to the June Board meeting.
Although each Committee has had an opportunity to review the proposal, it remains the
responsibility of the Administration Committee to recommend approval.
The Administration Committee is requested to recommend that the Board of Directors
approve this budget at the June 22, 2016 Board meeting.
RELEVANT STANDARDS
Produce Operations and CIP budgets every two years with annual update
Page 1 of 2
PROBLEM
Lack of understanding of the Orange County Sanitation District's (Sanitation District)
resources, or revenues and reserves, makes it difficult to approve a budget that meets
the current needs of the Sanitation District, lays the groundwork for future budgets, and
keeps the Sanitation District in sound financial condition.
PROPOSED SOLUTION
Providing the Board of Directors with an understanding of the Sanitation District's
resources will assist in the approval of the proposed two-year budget.
TIMING CONCERNS
The proposed two-year budget, effective July ls' of this year, will be finalized and
presented to the Board for adoption in June.
RAMIFICATIONS OF NOT TAKING ACTION
The Sanitation District will not be able to carry out its financial fiduciary duties beyond
June 30, 2016.
ADDITIONAL INFORMATION
The second year of the two-year budget is being proposed at $375.2 million, or
approximately $100 million less than the first year proposed amount of $475.2. This
reduction is primarily due to the one-time transfer of$40.0 million set aside in reserves to
maintain the local sewer lines being transferred over to the East Orange County Water
District, a pay down of the remaining $25 million of unfunded actuarial accrued pension
liability to the Orange County Employees Retirement System, and a reduction of $33
million in the capital improvement program due to the timing of when projects become
ready for design and construction.
ATTACHMENTS
The following attachments)are included in hard copy and may also be viewed on-line at the OCSD website
iwww.ocsd.com) with the complete agenda package:
• Proposed FY 2016-17 and 2017-18 Executive Budget Summary
• Proposed FY 2016-17 and 2017-18 Budget
(These documents are provided as separate attachments.)
Page 2 of 2
ADMINISTRATION COMMITTEE Meeting Dare To ad.ofDir.
06/08,16 —
AGENDA REPORTItem Number Item Number
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Celia Chandler, Director of Human Resources
SUBJECT: WORKFORCE PLANNING
GENERAL MANAGER'S RECOMMENDATION
Information Only.
BACKGROUND
Each month, staff provides an informational presentation on topics of interest to the Board
of Directors. This month's topic is an overview of the Orange County Sanitation District's
Workforce Development.
RELEVANT STANDARDS
• Provide for professional growth, development
• Positive employer, employee relations
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.com) with the
complete agenda package:
N/A
Page 1 of 1
ORANGE COUNTY SANITATION DISTRICT
Agenda
Terminology Glossary
Glossary of Terms and Abbreviations
AQMD Air Quality Management District
ASCE American Society of Civil Engineers
BOD Biochemical Oxygen Demand
CARB California Air Resources Board
CASA California Association of Sanitation Agencies
CCTV Closed Circuit Television
CEQA California Environmental Quality Act
CIP Capital Improvement Program
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
gpd Gallons per day
GWR System Groundwater Replenishment System (also called GWRS)
ICS Incident Command System
IERP Integrated Emergency Control Plan
LOS Level of Service
MGD Million gallons per day
NACWA National Association of Clean Water Agencies
NPDES National Pollutant Discharge Elimination System
NWRI National Water Research Institute
O&M Operations and Maintenance
OCCOG Orange County Council of Governments
OCHCA Orange County Health Care Agency
OCSD Orange County Sanitation District
OCWD Orange County Water District
GOBS Ocean Outfall Booster Station
OSHA Occupational Safety and Health Administration
PCSA Professional Consultant Services Agreement
POTW Publicly Owned Treatment Works
ppm Parts per million
PSA Professional Services Agreement
RFP Request For Proposal
Glossary of Terms and Abbreviations
RWQCB Regional Water Quality Control Board
SARFPA Santa Ana River Flood Protection Agency
SARI Santa Ana River Inceptor
SARWQCB Santa Ana Regional Water Quality Control Board
SAW PA Santa Ana Watershed Project Authority
SCADA Supervisory Control and Data Acquisition system
SCAP Southern California Alliance of Publicly Owned Treatment Works
SCAQMD South Coast Air Quality Management District
SOCWA South Orange County Wastewater Authority
SSMP Sanitary Sewer Management Plan
SSO Sanitary Sewer Overflow
SWRCB State Water Resources Control Board
TDS Total Dissolved Solids
TMDL Total Maximum Daily Load
TSS Total Suspended Solids
WDR Waste Discharge Requirements
WEF Water Environment Federation
WERF Water Environment Research Foundation
Activated-sludge process — A secondary biological wastewater treatment process where bacteria
reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved
nutrients in the wastewater.
Benthos — The community of organisms, such as sea stars, worms and shrimp, which live on, in, or
near the seabed, also know as the benthic zone.
Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes
decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in
water.
Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the
wastewater treatment process. This high-quality product can be recycled as a soil amendment on
farm land or further processed as an earth-like product for commercial and home gardens to improve
and maintain fertile soil and stimulate plant growth.
Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets.
Also includes treatment improvements, additional capacity, and projects for the support facilities.
Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also
occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common
bacteria in wastewater.
Collections system — In wastewater, it is the system of typically underground pipes that receive and
convey sanitary wastewater or storm water.
Glossary of Terms and Abbreviations
Certificate of Participation (COP) -A type of financing where an investor purchases a share of the
lease revenues of a program rather than the bond being secured by those revenues.
Contaminants of Potential Concern (CPC) - Pharmaceuticals, hormones, and other organic
wastewater contaminants.
Dilution to Threshold (D!f) - the dilution at which the majority of the people detect the odor
becomes the D(f for that air sample.
Greenhouse gases - In the order of relative abundance water vapor, carbon dioxide, methane,
nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse
effect").
Groundwater Replenishment (GWR) System - A joint water reclamation project that proactively
responds to Southern California's current and future water needs. This joint project between the
Orange County Water District and the Orange County Sanitation District provides 70 million gallons a
day of drinking quality water to replenish the local groundwater supply.
Levels of Service (LOS)-Goals to support environmental and public expectations for performance.
NOMA- N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been
found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide
with extra ultra-violet treatment.
National Biosolids Partnership (NBP) - An alliance of the National Association of Clean Water
Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S.
Environmental Protection Agency (EPA). NBP is committed to developing and advancing
environmentally sound and sustainable biosolids management practices that go beyond regulatory
compliance and promote public participation in order to enhance the credibility of local agency
biosolids programs and improved communications that lead to public acceptance.
Plume-A visible or measurable concentration of discharge from a stationary source or fixed facility.
Publicly-owned Treatment Works (POTW)- Municipal wastewater treatment plant.
Santa Ana River Interceptor (SARI) Line - A regional brine line designed to convey 30 million
gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the
ocean for disposal, after treatment.
Sanitary sewer - Separate sewer systems specifically for the carrying of domestic and industrial
wastewater. Combined sewers carry both wastewater and urban run-off.
South Coast Air Quality Management District (SCAQMD) - Regional regulatory agency that
develops plans and regulations designed to achieve public health standards by reducing emissions
from business and industry.
Secondary treatment - Biological wastewater treatment, particularly the activated-sludge process,
where bacteria and other microorganisms consume dissolved nutrients in wastewater.
Sludge - Untreated solid material created by the treatment of wastewater.
Total suspended solids (TSS)-The amount of solids floating and in suspension in wastewater.
Glossary of Terms and Abbreviations
Trickling filter — A biological secondary treatment process in which bacteria and other
microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in
wastewater as it trickles over them.
Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm
drains, rivers, lakes, and oceans.
Wastewater—Any water that enters the sanitary sewer.
Watershed —A land area from which water drains to a particular water body. OCSD's service area is
in the Santa Ana River Watershed.