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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 Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1.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.