HomeMy WebLinkAbout07-12-2017 Administration Committee Agenda Orange County Sanitation District Wednesday, July 12, 2017
Regular Meeting of fhe 5:00 P.M.
ADMINISTRATION Administration Building
COMMITTEE Board Room
10844 Ellis Avenue
Fountain Valle 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 Any items withdrawn from the Consent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 June 14, 2017 Administration
Committee Meeting.
07/12/2017 Administration Committee Agenda Page 1 of
2. 2018 BENEFITS INSURANCE RENEWAL (Celia Chandler)
RECOMMENDATION: Recommend to the Board of Directors to: Approve the
Orange County Sanitation District 2018 Benefits Insurance Renewal for the
not-to-exceed amounts specified below:
A. Employee Benefit Specialists (medical, dental, and vision plans; Employee
Assistance Program [EAP])— not-to-exceed $10,507,891;
B. Prudential (basic life, short- and long-term disability) — not-to-exceed
$598,011; and
C. The Standard (EMT & Manager disability)— not-to-exceed $30,000.
3. INDEPENDENT FINANCIAL AUDITORS' COMMUNICATION LETTER FOR
THE AUDIT OF THE ORANGE COUNTY SANITATION DISTRICT FINANICAL
STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2017
(Lorenzo Tyner)
RECOMMENDATION: Recommend to the Board of Directors to: Receive and file
the Communication Letter dated June 15, 2017 prepared by the Orange County
Sanitation District's independent financial auditors, Macias Gin! & O'Connell LLP
(MGO).
NON-CONSENT:
4. SETTLEMENT AGREEMENT FOR CHARGES AND FEES OWED BY ONE
INDUSTRIAL WASTEWATER DISCHARGE PERMITTEE (Lorenzo Tyner)
RECOMMENDATION: Recommend to the Board of Directors to: Approve the
settlement agreement negotiated by the General Manager for the collection of
charges owed for sanitary sewer service charges, plus interest of 6.00%, with
Thompson Energy Resources, LLC, in a form approved by General Counsel.
5. DEFERRED PAYMENT AGREEMENT FOR CHARGES AND FEES OWED BY
ONE INDUSTRIAL WASTEWATER DISCHARGE PERMITTEE (Lorenzo Tyner)
RECOMMENDATION: Recommend to the Board of Directors to: Approve the
deferred payment agreement negotiated by the General Manager for the collection
of all charges and fees owed for sanitary sewer service charges, plus interest of
6.00% per annum, with Aseptic Technology, LLC, in a form approved by General
Counsel.
07/12/2017 Administration Committee Agenda Page 2 of 4
INFORMATION ITEMS:
6. WASTEWATER FLOW & LOADING STUDY UPDATE (Lorenzo Tyner)
Additional Information will be provided regarding the Orange County Sanitation
District's on-going participation in the California Association of Sanitation Agencies
wastewater flow and loading study and the Participating Agency Contribution
Pledges.
7. HUMAN RESOURCES —WORKFORCE PLANNING, SAFETY AND SECURITY
(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,
September 13, 2017 at 5:00 p.m.
07/12/2017 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 Postina: In accordance with the requirements of Califomia Government Code Section 54954.2,this agenda
has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis
Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public
records relating to each agenda item,including any public records distributed less than 72 hours prior to the meeting
to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board.
Agenda Description: The agenda provides a brief general description of each item of business to be considered or
discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take
any action which is deemed appropriate.
NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to
the Clerk of the Board 14 days before the meeting.
Kelly A.Lore
Clerk of the Board
(714)593-7433
klore(docsd.com
For any questions on the agenda, Committee members may contact staff at:
General Manager James Herberg (714)593-7300 iherbero(docsd.com
Assistant General Manager Bob Ghirelli (714)593-7400 rohirelli(docsd.00m
Director of Finance and Lorenzo Tyner (714)593-7550 Itvner(doasd.com
Administrative Services
Director of Human Resources Celia Chandler 714 593-7202 cchandler ocsd.com
07/12/2017 Administration Committee Agenda Page 4 of 4
ITEM NO. 1
MINUTES OF THE
ADMINISTRATION COMMITTEE
Orange County Sanitation District
Wednesday, June 14, 2017 at 5:00 P.M.
A regular meeting of the Administration Committee of the Orange County Sanitation
District was called to order by Committee Chairman Wanks on June 14, 2017 at 5:02 p.m.
in the Administration Building of the Orange County Sanitation District. Alternate Director
Peterson led the Flag Salute.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
Chad Wanke, Chair Jim Herberg, General Manager
Donald P. Wagner, Vice-Chair Bob Ghirelli, Assistant General Manager
Jim Ferryman Celia Chandler, Director of Human Resources
Peter Kim Jim Colston, Director of Environmental Services
Al Krippner Rob Thompson, Director of Engineering
Steve Nagel Ed Torres, Director of Operations & Maintenance
Scott Peotter Lorenzo Tyner, Director of Finance &
Erik Peterson (Alternate) Administrative Services
Greg Seboum, Board Chair Kelly Lore, Clerk of the Board
David Shawver, Board Vice-Chair Janine Aguilar
Al Garcia
COMMITTEE MEMBERS ABSENT: Rebecca Long
Glenn Parker Mark Manzo
Teresa Smith Mike White
Sal Tinajero
OTHERS PRESENT:
Brad Hogin, General Counsel
PUBLIC COMMENTS:
None.
REPORT OF COMMITTEE CHAIR:
Committee Chair Wanks did not provide a report.
REPORT OF GENERAL MANAGER:
General Manager Jim Herberg announced that on Friday, he and Director of Engineering
Rob Thompson met with OCTA CEO Darrell Johnson and Executive Director of Capital
Programs Jim Biel to discuss alternative solutions, to meet the needs of both agencies,
regarding the 1405 expansion.
06/14/2017 Administration Committee Minutes Page 1 of 5
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
May 10, 2017 Administration Committee Meeting.
AYES: Ferryman, Kim, Krippner, Nagel, Peotter, Peterson (Alternate),
Shawver, and Wanke
NOES: None
ABSTENTIONS: None
ABSENT: Parker, Seboum, T. Smith, Tinajero, and Wagner
2. FY 2017-18 USE CHARGES FOR SANTA ANA WATERSHED PROJECT
AUTHORITY (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to: Adopt Resolution No. OCSD 17-XX, entitled, "A Resolution of the
Board of Directors of Orange County Sanitation District Establishing Use Charges
for the 2017-18 Fiscal Year Pursuant to the Wastewater Treatment and Disposal
Agreement with the Santa Ana Watershed Project Authority ("SAWPA")".
AYES: Ferryman, Kim, Krippner, Nagel, Peotter, Peterson (Alternate),
Shawver, and Wanke
NOES: None
ABSTENTIONS: None
ABSENT: Parker, Seboum, T. Smith, Tinajero, and Wagner
3. GANNS APPROPRIATIONS LIMIT FOR FISCAL YEAR 2017-18 (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to: Adopt Resolution No. OCSD 17-XX entitled, "A Resolution of the
Board of Directors of the Orange County Sanitation District Establishing the Annual
Appropriations Limit for Fiscal Year 2017-18, for the Orange County Sanitation
District in accordance with the Provisions of Division 9 of Title 1 of the California
Government Code."
AYES: Ferryman, Kim, Krippner, Nagel, Peotter, Peterson (Alternate),
Shawver, and Wanke
NOES: None
ABSTENTIONS: None
ABSENT: Parker, Seboum, T. Smith, Tinajero, and Wagner
O6/14/2017 Administration Committee Minutes Page 2 of 5
4. TEMPORARY EMPLOYMENT SERVICES (Celia Chandler)
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Authorize the General Manager to enter into sole source purchase order
contracts with various staffing firms for Temporary Employment Services
selected in Specification No. CS-2009-421BD for the period July 1, 2017
through June 30, 2018; and
B. Authorize the General Manager to add or remove staffing firms from the
available pool, as needed, to meet work requirements identified by the
Human Resources Department, with no change to the approved total
budget, at a total cost not to exceed $1,187,190.
AYES: Ferryman, Kim, Krippner, Nagel, Peotter, Peterson (Alternate),
Shawver, and Wanks
NOES: None
ABSTENTIONS: None
ABSENT: Parker, Seboum, T. Smith, Tinajero, and Wagner
Chair Sebourn arrived at 5:05 p.m.
Director Wagner arrived at 5:06 p.m.
Director T. Smith arrived at 5:14 p.m.
Committee Chair Wanke asked that the Informational Item No. 6 be moved forward.
INFORMATION ITEMS:
6. LABORATORY, MONITORING, AND COMPLIANCE DIVISION UPDATE
(James Colston)
Director of Environmental Services Jim Colston introduced Ron Coss, Laboratory,
Monitoring, and Compliance Manager, who provided an informative PowerPoint
presentation that included an overview of the division,the reports generated by the
division, laboratory workload, laboratory workload by customer, productivity, and
budget, results of a recent survey conducted regarding division management and
goals, and laboratory accreditation.
Questions regarding the urban runoff policy and monitoring were answered by
Mr. Colston and Mr. Herberg. A list of storm drain channel locations that feed into
the Orange County Sanitation District system was requested.
O6/14/2017 Administration Committee Minutes Page 3 of 5
NON-CONSENT:
5. PROPOSED REVISIONS TO FY 2017-18 BUDGET (Lorenzo Tyner)
Director of Finance and Administrative Services Lorenzo Tyner provided
information regarding the budget process and introduced Controller Mike White
who provided a PowerPoint presentation on the update to the Fiscal Year 2017-18
budget which included: Revenues, outlays, major revenue components, general
user fees, general income, operating expense summary, CIP programs, debt
issuances, and the 10-year cash flow.
MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to: Approve the proposed revisions to the Operating, Capital, Debt/COP
Service, and Self-Insurance Budgets for FY 2017-18, as follows:
Originally Proposed
Adopted Budget Revised Budget
FY 2017.18 FY 2017-18
Operations&Maintenance $149,854,390 $151,919,380
Net Capital Improvement Program 137,989,000 148,061,000
Debt/COP Service 83,119,000 82,033,000
General Liability and Property Self-Insurance 1,450,000 1,335,000
Worker's Compensation Self Insurance 1,130,000 1,040,000
Intra-District Joint Equity Purchase/Sale(') 1,700,000 1,240,000
TOTAL $375,242,390 $385,628,380
O Cash to/from Revenue Area 14(RA14)in exchange for capital assets tolfrom consolidated Revenue Area 15(RA15).
AYES: Ferryman, Kim, Krippner, Nagel, Peotter, Peterson (Alternate),
Sebourn, Shawver, T. Smith, Wagner and Wanks
NOES: None
ABSTENTIONS: None
ABSENT: Parker and Tinajero
CLOSED SESSION:
CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION
54956.8:
The Committee convened in closed session at 5:51 p.m. to discuss one item. Confidential
minutes of the Closed Session have been prepared in accordance with the above
Government Code Section and are maintained by the Clerk of the Board in the Official
Book of Confidential Minutes of Board and Committee Closed Session Meetings.
RECONVENED IN REGULAR SESSION:
The Committee reconvened in regular session at 6:10 p.m.
06/14/2017 Administration Committee Minutes Page 4 of 5
CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED
SESSION:
General Counsel Brad Hogin did not provide a report.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IF ANY:
None.
ADJOURNMENT:
Committee Chair Wanke declared the meeting adjourned at 6:10 p.m.to the next regularly
scheduled meeting of Wednesday, July 12, 2017 at 5:00 p.m.
Submitted by:
Kelly A. Lore, CMC
Clerk of the Board
O6/14/2017 Administration Committee Minutes Page 5 of 5
ADMINISTRATION COMMITTEE Meeting Date Ta Bd.of Dir.
07/12/17 07/26/17
AGENDA REPORT hernNumber Item Number
z
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Celia Chandler, Director of Human Resources
SUBJECT: 2018 BENEFITS INSURANCE RENEWAL
GENERAL MANAGER'S RECOMMENDATION
Approve the Orange County Sanitation District 2018 Benefits Insurance Renewal for the
not-to-exceed amounts specified below:
A. Employee Benefit Specialists (medical, dental, and vision plans; Employee
Assistance Program [EAP])— not-to-exceed $10,507,891;
B. Prudential (basic life, short-and long-term disability)—not-to-exceed $598,011; and
C. The Standard (EMT & Manager disability)— not-to-exceed $30,000.
SUMMARY
The Orange County Sanitation District (Sanitation District) provides healthcare and
welfare insurance benefits as a provision contained in its Memoranda of Understanding
(MOU's) and personnel policies.
The Human Resources (HR) Department and Sanitation District's operational insurance
broker, Alliant, began the renewal process in March and received initial quotes in June.
After successfully negotiating with the insurance carriers, Alliant was able to secure
competitive rates for the Sanitation District without compromising the level of benefits
provided to employees and eligible dependents.
The cost of insurance coverage will increase by 3.1%, or $335,833, for a total cost of
$11,135,903 for 2018, which is proportionally shared as follows:
• Sanitation District cost: $9,059,537
• Employee cost: $2,076,365
BACKGROUND
In May 2015, the Board of Directors (Board) approved moving the Sanitation District's
medical insurance from direct contract with the carriers to joining the insurance risk
sharing pool under California State Association of Counties - Excess Insurance Authority
(CSAC-EIA). The association with CSAC-EIA resulted in immediate and future cost
savings to the Sanitation District in medical insurance premiums and dictated a change
Page 1 of 4
from fiscal to calendar-based plan year from January through December. Staff
anticipates presenting the benefits renewal information to the Board annually every July
for an effective date of January 151 of the year therafter.
RELEVANT STANDARDS
• Competitive compensation and benefits
PROBLEM
The Sanitation District's healthcare and welfare insurance benefits renew on an annual
basis, with carrier quotes typically received by June of every year. Through its association
with CSAC-EIA, the Sanitation District is required to hold an annual benefits open
enrollment period every October to provide employees and eligible dependents the
opportunity to make changes to their benefit elections, for an effective date of January 1s1
of the year thereafter.
PROPOSED SOLUTION
Approve the benefits insurance renewals as described above with the respective carriers
to ensure continued coverage for employees and eligible dependents.
TIMING CONCERNS
Board approval is necessary in July 2017 to ensure that the Sanitation District meets its
insurance renewal deadlines, to finalize preparations for the October benefits open
enrollment, and for continued coverage for Sanitation District employees and eligible
dependents in accordance with MOU's and personnel policies.
RAMIFICATIONS OF NOT TAKING ACTION
Without Board approval, the Sanitation District cannot finalize the contracts with the
insurance carriers for the 2018 Plan Year, resulting in the interruption of medical, dental,
vision, EAP, life, and disability coverage and services to employees and eligible
dependents; and the Sanitation District would not meet its obligation to provide these
benefits as provided for in MOU's and personnel policies.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
Medical Insurance
The Sanitation District's medical benefits are designed to help maintain wellness and
protect employees and their families from major financial hardship in the event of illness
Page 2 of 4
or injury. The Sanitation District offers a choice of medical plans through Anthem Blue
Cross and Kaiser Permanents.
HMO (Health Maintenance Organization) plans offer comprehensive coverage.
Employees have a choice between the Anthem Blue Cross HMO or the Kaiser HMO plan.
The PPO (Preferred Provider Organization) plan offers a network of doctors and
healthcare facilities that provide services to plan members at special discounted rates.
The PPO plan is with Anthem Blue Cross.
Dental Insurance
The Sanitation District provides the Delta Dental plan to all benefit eligible employees.
Vision Insurance
The Sanitation District currently provides vision insurance to all benefit eligible employees
through Anthem Blue View Vision. S taff is currently in negotiation with Anthem Blue View
and VSP through CSAC-EIA to transition from a direct provider to the shared (CSAC-EIA)
pool in an effort to achieve a competitive rate and take advantage of a three-year rate
lock through 2021. The total annual not-to-exceed amount is $114,829.
Basic Life Insurance
Life insurance provides protection for an employee's beneficiary in the event of death. All
benefit eligible full-time and part-time employees automatically receive Basic Life and
Accidental Death & Dismemberment insurance coverage through Prudential Insurance
Company of America. The benefit amount is $50,000 for employees and 3x's of salary
for managers and executives.
Short-Term Disability Insurance
The short-term disability insurance plan protects employees when non-work related
illness or injury makes it impossible for them to work for a short period of time. Under the
plan, income may be continued for up to 26 weeks. The Sanitation District pays the entire
cost of coverage for regular full-time and part-time employees. Coverage is offered
through Prudential.
Long-Term Disability Insurance
The long-term disability insurance plan protects employees when an illness or injury
makes it impossible for them to work for an extended period of time. Under the plan,
employees who are disabled for more than 90 days are eligible to receive a benefit of
67%of their basic monthly pay up to$5,000/month. The Sanitation District pays the entire
cost of coverage for regular full-time and part-time employees with five or more years of
service. Coverage is offered through Prudential.
Executive Disability
The additional long-term disability insurance plan provides increased income protection
for executives and managers. Under the plan, eligible employees who are disabled for
more than 90 days due to a non-work related illness or injury are eligible to receive an
additional benefit of $3,100/month. The first $5,000/month is covered by the Sanitation
District group long-term disability plan benefit. Coverage is offered through The Standard.
Page 3 of 4
Employee Assistance Program
The EAP plan protects employees and family members when they need help with
personal problems such as marital and relationship problems; stress, anxiety and
depression; grief and loss; or substance abuse. Coverage is offered through ComPsych.
CEQA
N/A
BUDGET/PURCHASING ORDINANCE COMPLIANCE
The funds for the renewal of these insurances are derived from the Sanitation District
Operating Budget.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (AW..ocsd.coml with the
complete agenda package:
N/A
Page 4 d4
ADMINISTRATION COMMITTEE Meeting Date Ta Bd.of Dir.
07/12/17 07/26/17
AGENDA REPORT emNumber hem Number
3
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: INDEPENDENT FINANCIAL AUDITORS' COMMUNICATION LETTER
FOR THE AUDIT OF THE ORANGE COUNTY SANITATION DISTRICT
FINANICAL STATEMENTS AS OF AND FOR THE YEAR ENDED
JUNE 30, 2017
GENERAL MANAGER'S RECOMMENDATION
Receive and file the Communication Letter dated June 15, 2017 prepared by the Orange
County Sanitaiton District's independent financial auditors, Macias Gini & O'Connell LLP
(MGO).
BACKGROUND
As required by American Institute of Certified Public Accountant's Statement of Auditing
Standards 114, the Orange County Sanitation District's (Sanitation District) independent
external auditors are required to communicate with those charged with governance, such
as the Administration Committee.
Attached is a letter of communication for the audit of the Sanitation District's financial
statements for the year ended June 30, 2017 for the Committee's consideration. This
letter describes the communication process, auditor's independence, the audit planning
process, the concept of materiality in planning and executing the audit, the auditors'
approach to internal control and compliance that is relevant to the audit, using the work
of internal auditors, and the timing of the audit.
RELEVANT STANDARDS
Annual financial report and audit letter
ATTACHMENT
The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD websim
(www.ocsd.coml with the complete agenda package:
Auditors Communication Letter
Page 1 of 1
MGOCertifled
Accountants
Accountants
June 15,2017
To the Administration Committee
Orange County Sanitation District
10844 Ellis Ave.
Fountain Valley,CA 92708
This letter is intended to communicate certain matters related to the planned scope and timing of our audit
of the Orange County Sanitation District (the District) financial statements as of and for the year ending
June 30,2017.
Communication
Effective two-way communication between our firm and the Administration Committee is important to
understanding matters related to the audit and in developing a constructive working relationship.
Your insights may assist us in understanding the District and the environment, in identifying appropriate
sources of audit evidence, and in providing information about specific transactions or events. We will
discuss with you your oversight of the effectiveness of internal control and any areas where you request
additional procedures to be undertaken. We expect that you will timely communicate with us any matters
you consider relevant to the audit. Such matters might include strategic decisions that may significantly
affect the nature, timing,and extent of audit procedures,your suspicion or detection of fraud or abuse, or
any concerns you may have about the integrity or competence of senior management.
We will timely communicate to you any fraud involving senior management and other fraud that causes a
material misstatement of the financial statements, illegal acts, instances of noncompliance, or abuse that
come to our attention (unless they are clearly inconsequential), and disagreements with management and
other serious difficulties encountered in performing the audit. We also will communicate to you and to
management any significant deficiencies or material weaknesses in internal control that become known to
us during the course of the audit. Other matters arising from the audit that are, in our professional
judgment, significant and relevant to you in your oversight of the financial reporting process will be
communicated to you in writing after the audit.
Independence
Our independence policies and procedures are designed to provide reasonable assurance that our firm and
its personnel comply with applicable professional independence standards. Our policies address financial
interests, business and family relationships, and nonaudit services that may be thought to hear on
independence. For example, without our permission no partner or professional employee of Macias Gini
&O'Connell LLP is permitted to have any direct financial interest or a material indirect financial interest
in a client or any affiliates of a client. Also, if an immediate family member or close relative of a partner
or professional employee is employed by a client in a key position, the incident must be reported and
resolved in accordance with Firm policy. In addition, our policies restrict certain nonaudit services that
may be provided by Macias Gini & O'Connell LLP and require audit clients to accept certain
responsibilities in connection with the provision of permitted non-attest services.
Matlaa 61ni&Ocannell LLP
aSls MacArthur Court,Suite 600
Newport Beam.CA 92660 www.mgocpa.com
The Audit Planning Process
Our audit approach places a strong emphasis on obtaining an understanding of how the District functions.
This enables us to identify key audit components and tailor our procedures to the unique aspects of your
operations. The development of a specific audit plan will begin by meeting with you and with
management to obtain an understanding of business objectives, strategies,risks,and performance.
As part of obtaining an understanding of your business and its environment, we will obtain an
understanding of internal control. We will use this understanding to identify risks of material
misstatement, which will provide us with a basis for designing and implementing responses to the
assessed risks of material misstatement. We will also obtain an understanding of the users of the financial
statements in order to establish an overall materiality level for audit purposes. We will conduct formal
discussions among engagement team members to consider how and where your financial statements
might be susceptible to material misstatement due to fraud or error.
The Concept of Materiality in Planning and Executing the Audit
We apply the concept of materiality both in planning and performing the audit, evaluating the effect of
identified misstatements and compliance on the audit,and the effect of uncorrected misstatements, if any,
on the financial statements,and in forming the opinions in our reports.Our determination of materiality is
a matter of professional judgment and is affected by our perception of the financial and compliance
information needs of users of the financial statements and compliance reports. We establish performance
materiality at an amount less than materiality for the financial statements as a whole to allow for the risk
of misstatements that may not be detected by the audit. We use performance materiality for purposes of
assessing the risks of material misstatement and determining the nature, timing and extent of further
financial audit procedures. Our assessment of materiality throughout the audit will be based on both
quantitative and qualitative considerations. Because of the interaction of quantitative and qualitative
considerations, misstatements of a relatively small amount could have a material effect on the current
financial statements and noncompliance as well as financial statements and noncompliance of future
periods. We will accumulate misstatements identified during the audit, other than those that are clearly
trivial. At the end of the audit, we will inform you of all individual unrecorded misstatements aggregated
by us in connection with our evaluation of our audit test results. We will also accumulate information
concerning noncompliance during the audit and communicate information concerning noncompliance in
accordance with applicable provisions of Government Auditing Standards issued by the Comptroller
General of the United States.
Our Approach to Internal Control and Compliance Relevant to the Audit
Our audit of the financial statements will include obtaining an understanding of internal control sufficient
to plan the audit and to determine the nature,timing, and extent of audit procedures to be performed. An
audit is not designed to provide assurance on internal control or to identify significant deficiencies or
material weaknesses. Our review and understanding of the District's internal control is not undertaken for
the purpose of expressing an opinion on the effectiveness of internal control.
We will issue reports on internal control related to the financial statements. These reports describe the
scope of testing of internal control and the results of our tests of internal controls. Our reports on internal
control will include any significant deficiencies and material weaknesses in the system of which we
become aware as a result of obtaining an understanding of internal control and performing tests of internal
control consistent with the requirements of the Government Auditing Standards issued by the Comptroller
General of the United States.
2
Using the Work of Internal Auditors
As part of our understanding of internal control, we will obtain and document an understanding of your
internal audit function. We will read relevant internal audit reports issued during the year to determine
whether such reports indicate a source of potential error or fraud that would require a response when
designing our audit procedures. Because internal auditors are employed consultants, they are not
independent and their work can never be substituted for the work of the external auditor. We may,
however,alter the nature,timing,and extent of our audit procedures,based upon the results of the internal
auditors work or use them to provide direct assistance to us during the performance of our audit.
Timing of the Audit
We have scheduled preliminary audit field work for the week of June 12, 2017 with final field work
commencing the week of August 23, 2017. Management's adherence to its closing schedule and timely
completion of information used by us in performance of the audit is essential to timely completion of the
audit.
Closing
We will be pleased to respond to any questions you have about the foregoing. We appreciate the
opportunity to be of service to Orange County Sanitation District.
This communication is intended solely for the information and use of the Administration Committee,
Board of Directors and the management of the District and is not intended to be and should not be used by
anyone other than these specified parties.
Macias Gini&O'Connell LLP
Peter S. George
Partner
3
ADMINISTRATION COMMITTEE Meeting Date TOBd.of Dir.
07/12/17 07/26/17
AGENDA REPORT IWrnNumber Item Number
a
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Administrative Services
SUBJECT: SETTLEMENT AGREEMENT FOR CHARGES AND FEES OWED BY ONE
INDUSTRIAL WASTEWATER DISCHARGE PERMITTEE
GENERAL MANAGER'S RECOMMENDATION
Approve the settlement agreement negotiated by the General Manager for the collection
of charges owed for sanitary sewer service charges, plus interest of 6.00%, with
Thompson Energy Resources, LLC, in a form approved by General Counsel.
BACKGROUND
Thompson Energy Resources, LLC (Thompson Energy) is the holder of an industrial
wastewater discharge permit issued by the Orange County Sanitation District (Sanitation
District)that requires payment of sanitary sewer service charges for the cost of conveying,
treating, and disposing of wastewater discharged. Based on the terms of the permit, the
permittee is required to pay estimated quarterly sewer service charges that are reconciled
annually with actual discharge Flows and strength. The permittee is now in default of their
payment obligations ($118,812.78) and the Sanitation District filed an Administrative
Complaint against the permittee for nonpayment of invoices requesting permit suspension
until the account is paid in full.
The Sanitation District and Permittee have reached a settlement amount for the purpose
of avoiding further administrative proceedings and the institution of any litigation that may
follow based upon these matters. The General Manager, in accordance with Resolution
No. OCSD 11-04, Article III, "Collection of Fees and Charges Relating to Industrial Waste
Discharges", has negotiated a settlement agreement with this permittee requiring
payment in full in the amount of$107,102.29.
RELEVANT STANDARDS
• Maintain collaborative and cooperative relationships with regulators/Stakeholders
PROBLEM
Thompson Energy is past due on their invoices and owes $118,812.78.
PROPOSED SOLUTION
Resolution No. OCSD 11-04 allows for a settlement agreement to allow the permittee to
pay the amounts owed while continuing to conduct their business with a valid industrial
Page 1 of 2
wastewater discharge permit. If a settlement agreement is not approved, the Sanitation
District would move forward with administrative complaint proceedings to suspend the
Permittee's permit until the invoices are paid in full.
TIMING CONCERNS
The settlement agreement should be executed as soon as possible so the account will
be current.
RAMIFICATIONS OF NOT TAKING ACTION
The outstanding amounts owed to the Sanitation District will increase when annual
reconciliation invoices are issued.
FINANCIAL CONSIDERATIONS
The settlement agreement complies with Resolution No. OCSD 11-04.
ATTACHMENT
The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.coml with the complete agenda package:
• Settlement Agreement—Thompson Energy Resources, LLC
Page 2 of 2
SETTLEMENT AGREEMENT
THIS AGREEMENT, is entered into, to be effective July 26, 2017, by and
between Orange County Sanitation District ("District"), a county sanitation district duly
organized and existing pursuant to Section 4700 at. seq. of the Health & Safety Code of
the State of California and Thompson Energy Resources, LLC ("Permitee").
RECITALS
A. District is a wastewater treatment agency which owns and operates
wastewater treatment facilities which receive, treat and discharge, through an ocean
outfall, wastewater received from dischargers within its jurisdictional boundaries. In the
course of its wastewater treatment operations, and pursuant to Ordinance No. OCSD-
48 Wastewater Discharge Regulations ("District's Ordinance"), District issues industrial
wastewater discharge permits to certain persons/entities which discharge wastewater
into the District's sewerage system.
B. As part of the District's wastewater treatment operations, the District
imposes user fees on permittees, requiring such permittees to pay their share of the
District's costs of conveying, treating, and disposing of wastewater discharged by such
permittees.
C. Permittee is the holder of an industrial wastewater discharge permit issued
by District and is responsible for paying user fees for the cost of conveying, treating,
and disposing of wastewater discharged from Permittee's facility located at 3351 East
Birch Street, Brea, California 92821.
D. District has issued to Permittee Invoice No.'s 528770, 51175, 51285,
529090, 909725, 51492, 51556, 51557, 51682, 529408, 51985, 52187, 529727,
530037, 530452, 910106, 530658, 53446, 53520, 530980, 53619, 53731, 53787, and
53874 in the total amount of $118,812.78 for user fees and penalties then due and
owing to the District.
E. Permitee has failed to pay the presently owing sum of$118,812.78.
1
Permitee has requested additional time to pay this outstanding obligation.
F. Pursuant to District Resolution 11-04, District is authorized, pending
approval from District's Board of Directors, to negotiate and enter into a settlement
agreement relating to the financial obligation owing to the District.
G. The District and Permitee intend to settle the matter resulting from the
delinquent obligations owed by Permitee.
NOW, THEREFORE, in consideration of the facts recited above and the
conditions, covenants, and promises set forth below, District and Permitee agree as
follows:
AGREEMENT
1. On or before, August 15, 2017, Permitee shall pay to the
District the total sum of$107,102.29 in settlement of delinquent financial obligations owed
to the District for Invoice Nos. 528770, 51175, 51285, 529090, 909725, 51492, 51556,
51557, 51682, 529408, 51985, 52187, 529727, 530037, 530452, 910106, 530658,
53446, 53520, 530980, 53619, 53731, 53787, and 53874. Thompson Energy Resources
shall make payment(s) in accordance with the following conditions:
(a) The payment pursuant to this Settlement Agreement shall be made
by cashier's check, payable to Orange County Sanitation District, and delivered to the
Administrative Offices of the District, located at:
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, CA 92708
(b) If the payment is not received by the District prior to 4:00 p.m. on
August 15, 2017, Permitee's permit shall be immediately suspended until such time that
the District receives payment in the full amount of $ 107,102.29. By entering into this
Settlement Agreement, Permitee hereby waives the right to an administrative hearing or
2
other proceeding to challenge the permit suspension.
2. Permittee shall pay to District all other invoices issued by the District
during the term of this Agreement in accordance with the provisions of District's
Ordinance.
3. Permitee acknowledges that the failure to pay current invoices may be
grounds for suspension of any industrial wastewater discharge permit issued to
Permitee by District, and shall additionally be deemed a breach of this Agreement,
thereby giving rise to all legal remedies available to District. .
4. In consideration of the foregoing, District agrees to refrain from instituting
collection or permit suspension or revocation proceedings, which remedies are
presently available to the District as a result of Permitee's current failure to pay Invoice
No.'s 528770, 51175, 51285, 529090, 909725, 51492, 51556, 51557, 51682, 529408,
51985, 52187, 529727, 530037, 530452, 910106, 530658, 53446, 53520, 530980,
53619, 53731, 53787, and 53874. This provision to refrain from instituting such
proceedings shall be effective with regard only to Invoice Nos. 528770, 51175, 51285,
529090, 909725, 51492, 51556, 51557, 51682, 529408, 51985, 52187, 529727,
530037, 530452, 910106, 530658, 53446, 53520, 530980, 53619, 53731, 53787, and
53874, and only for so long as Permitee remains in compliance with the terms of this
Agreement.
5. Should any litigation be commenced between the District and
Permitee regarding enforcement of this Agreement, or the rights and any duties of the
parties in relation thereto, the prevailing party in such litigation shall be entitled, in
addition to such other relief as may be granted, to a reasonable sum as and for its
attorney fees and costs in the litigation which shall be determined by the court in such
litigation or in a separate action brought for that purpose.
6. Nothing in this Agreement shall affect Permitee's obligation to pay current
and/or future charges for use of District's sewerage system or Permitee's obligation to
3
comply with all other conditions and requirements of its industrial wastewater discharge
permit and the District's Ordinance.
7. Nothing herein shall affect the District's right to enforce all requirements
and conditions of the District's Ordinance.
8. This Agreement is made only for the benefit of the parties hereto. It is not
intended that any right under this Agreement shall accrue to any third person.
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
as of the day and year first written above.
Orange County Sanitation District
BY:
Gregory C. Sebourn, PLS
Board Chair
Attest: Thompson Energy Resources, LLC
BY:
Clerk of the Board Robert Thompson
4
ADMINISTRATION COMMITTEE Meeting Date TOBd.of Dir.
07/12/17 07/26/17
AGENDA REPORT emNumber Item Number
s
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Administrative Services
SUBJECT: DEFERRED PAYMENT AGREEMENT FOR CHARGES AND FEES OWED
BY ONE INDUSTRIAL WASTEWATER DISCHARGE PERMITTEE
GENERAL MANAGER'S RECOMMENDATION
Approve the deferred payment agreement negotiated by the General Manager for the
collection of all charges and fees owed for sanitary sewer service charges, plus interest
of 6.00% per annum, with Aseptic Technology, LLC, in a form approved by General
Counsel.
BACKGROUND
Aseptic Technology, LLC (Aseptic Technology) is the holder of an industrial wastewater
discharge permit issued by the Orange County Sanitation District (Sanitation District)that
requires payment of sanitary sewer service charges for the cost of conveying, treating,
and disposing of wastewater discharged. Based on the terms of the permit, the permittee
is required to pay estimated quarterly sewer service charges that are reconciled annually
with actual discharge flows and strength. The permittee is now in default of their payment
obligations ($451,161.54) and the Sanitation District filed an Administrative Complaint
against the permittee for nonpayment of invoices requesting permit suspension until the
account is paid in full.
The General Manager, in accordance with Resolution No. OCSD 11-04, Article III,
"Collection of Fees and Charges Relating to Industrial Waste Discharges,"has negotiated
a six-month deferred payment agreement with this permittee requiring monthly payment
terms plus interest of 6.00% per annum.
In January 2016, the Board of Directors approved a 12-month payment agreement for
Aseptic Technology that Aseptic Technology made timely payments against and paid off
as of January 2017. However, Aseptic Technology failed to make payments against their
current quarterly invoices for services rendered after January 2016, thus necessitating
this new payment agreement request. This new payment agreement also requires
Aseptic Technology to remit timely payments against new obligations occurring during
the term of the agreement.
RELEVANT STANDARDS
• Maintain collaborative and cooperative relationships with regulators/Stakeholders
Page 1 of 3
PROBLEM
Aseptic Technology is past due on their invoices and owes $451,161.54.
PROPOSED SOLUTION
Resolution No. OCSD 11-04 allows for a deferred payment agreement to allow the
permittee to pay the amounts owed while continuing to conduct their business with a valid
industrial wastewater discharge permit. If a deferred payment agreement is not approved,
the Sanitation District would move forward with administrative complaint proceedings to
suspend the Permittee's permit until the invoices are paid in full.
TIMING CONCERNS
The deferred payment agreement should be executed as soon as possible to allow the
permittee to begin making payments.
RAMIFICATIONS OF NOT TAKING ACTION
The outstanding amounts owed to the Sanitation District will increase when annual
reconciliation invoices are issued.
PRIOR COMMITTEE/BOARD ACTIONS
January 2016— Board of Directors approved Deferred Payment Agreement with Aseptic
Technology for outstanding invoices accumulated from September 2015 through
December 2015.
ADDITIONAL INFORMATION
Payment Due Administrative
No. Date Principal Interest Charge Total
1 8/15/2017 $74,259.14 $2,255.81 $25.00 $76,539.95
2 8/15/2017 $74,630.43 $1,884.51 $25.00 $76,539.94
3 9/15/2017 $75,003.59 $1,511.36 $25.00 $76,539.95
4 10/15/2017 $75,378.61 $1,136.34 $25.00 $76,539.95
5 11/15/2017 $75,755.50 $759.45 $25.00 $76,539.95
6 12/15/2017 $76,134.28 $380.67 $25.00 $76,539.95
Totals $451,161.54 1 $7,928.14 $150.00 $459,239.68
FINANCIAL CONSIDERATIONS
The deferred payment agreement complies with Resolution No. OCSD 11-04.
Page 2 of 3
ATTACHMENT
The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website
(wwwocsd.com) with the complete agenda package:
• Deferred Payment Agreement—Aseptic Technology, LLC
Page 3 of 3
DEFERRED PAYMENT AGREEMENT
THIS AGREEMENT, is entered into, to be effective July 26, 2017, by and
between Orange County Sanitation District ("District"), a county sanitation district duly
organized and existing pursuant to Section 4700 at. seq. of the Health & Safety Code of
the State of California and Aseptic Technology, LLC ("Permitee").
RECITALS
A. District is a wastewater treatment agency which owns and operates
wastewater treatment facilities which receive, treat and discharge, through an ocean
outfall, wastewater received from dischargers within its jurisdictional boundaries. In the
course of its wastewater treatment operations, and pursuant to Ordinance No. OCSD-
48 Wastewater Discharge Regulations ("District's Ordinance"), District issues industrial
wastewater discharge permits to certain persons/entities which discharge wastewater
into the District's sewerage system.
B. As part of the District's wastewater treatment operations, District imposes
user fees on permittees, requiring such permittees to pay their share of the District's
costs of conveying, treating and disposing of wastewater discharged by such
permittees.
C. Permittee is the holder of an industrial wastewater discharge permit issued
by District and is responsible for paying user fees for the cost of conveying, treating and
disposing of wastewater discharged from Permittee's facility located at 24855 Corbit
Place, Yorba Linda, California.
D. District has issued to Permittee Invoice Nos. 52996, 909924, 910080,
530302, 530620, 53274, 53273, 53272, 530942, 53796 and 53875 in the amount of
$451,161.54 for user fees and penalties then due and owing to the District.
E. Permitee has failed to pay the presently owing sum of$451,161.54 and
has requested additional time to pay this outstanding obligation.
F. Pursuant to Resolution 11-04, District is authorized to enter into deferred
1
payment agreements for limited sums and of limited duration, pursuant to approval by
the District's Board of Directors.
G. The District intends to provide additional time for Permitee to pay to
District the amounts presently due on Invoice Nos. 52996, 909924, 910080, 530302,
530620, 53274, 53273, 53272, 530942, 53796 and 53875 in accordance with the
requirements of District Resolution 11-04.
NOW, THEREFORE, in consideration of the facts recited above and the
conditions, covenants and promises set forth below, District and Aseptic Technology
LLC agree as follows:
AGREEMENT
1. Permittee shall make payments (including principal and interest) to the
District, pursuant to the following payment schedule:
Admin
Installment Due Date Principal Interest Charges Total Date
1 8/15/2017 $74,259.14 $2,255.81 $25.00 $76,539.95
2* 8/15/2017 $74,630.43 $1,884.52 $25.00 $76,539.95
3 9/15/2017 $75,003.59 $1,511.36 $25.00 $76,539.95
4 10/15/2017 $75,378.61 $1,136.34 $25.00 $76,539.95
5 11/15/2017 $75,755.50 $759.45 $25.00 $76,539.95
6 12/15/2017 1 $76,134.28 $380.67 $25.00 $76,539.95
* Following approval by the Board of Directors, the first and second installment
payments will be due on August 15, 2017. Permittee acknowledges Permitee will be
required to submit a total payment of$153,079.90 on or before August 15, 2017.
2. Permittee shall pay to District all other invoices issued by the District
during the term of this Agreement in accordance with the provisions of District's
Ordinance.
3. If any payment described in Paragraph 1 herein is not received by the
District on or before the due date specified, or if any payment described in Paragraph 2
2
herein is not received by District in accordance with the provisions of District's
Ordinance, the entire balance then owing shall become immediately due and payable
and interest at the rate of ten percent (10%) per annum shall accrue on any such unpaid
balance from the date of acceleration until the date that the balance due is fully paid to
the District.
4. Permitee acknowledges that the failure to pay current invoices, or failure
to pay any installment in accordance with the schedule set forth in Paragraph 1 herein,
may be grounds for suspension of any industrial wastewater discharge permit issued to
Permitee by District, and shall additionally be deemed a breach of this Agreement,
thereby giving rise to all legal remedies available to District. Permitee agrees that by
executing this Settlement Agreement, Permitee waives the right to an administrative
hearing for non-payment of invoices or any other means to challenge the amount owed,
and further agrees that failure to pay District in accordance with the terms of this
Agreement will result in immediate permit suspension until such time as the all
outstanding amounts owed are current.
5. In consideration of the foregoing, District agrees to refrain from instituting
collection or permit suspension or revocation proceedings, which remedies are
presently available to the District as a result of Permitee's current failure to pay Invoice
Nos. 52996, 909924, 910080, 530302, 530620, 53274, 53273, 53272, 530942, 53796
and 53875. This provision to refrain from instituting such proceedings shall be effective
with regard only to Invoice Nos. 52996, 909924, 910080, 530302, 530620, 53274,
53273, 53272, 530942, 53796, and 53875 only for so long as Permitee remains in
compliance with the terms of this Agreement.
6. Should any litigation be commenced between the District and
Permitee regarding enforcement of this Agreement, or the rights and any duties of the
parties in relation thereto, the prevailing party in such litigation shall be entitled, in
addition to such other relief as may be granted, to a reasonable sum as and for its
3
attorney fees and costs in the litigation which shall be determined by the court in such
litigation or in a separate action brought for that purpose.
7. Nothing in this Agreement shall affect Permitee's obligation to pay current
and/or future charges for use of District's sewerage system or Permitee's obligation to
comply with all other conditions and requirements of its industrial wastewater discharge
permit and the District's Ordinance.
8. Nothing herein shall affect the District's right to enforce all requirements
and conditions of the District's Ordinance.
9. This Agreement is made only for the benefit of the parties hereto. It is not
intended that any right under this Agreement shall accrue to any third person.
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
as of the day and year first written above.
Orange County Sanitation District
BY:
Gregory C. Sebourn, PLS
Board Chair
Attest: Aseptic Technology LLC
BY:
Clerk of the Board Noel Calma
4
ADMINISTRATION COMMITTEE Meeting Date To ad.of Dir.
m i2,17
-
AGENDA REPORT ern Number Item Number
6 —
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Administrative Services
SUBJECT: WASTEWATER FLOW & LOADING STUDY UPDATE
GENERAL MANAGER'S RECOMMENDATION
Information Only.
BACKGROUND
The Orange County Sanitation District's (Sanitation District)goal has always been to fairly
and equitably allocate the cost of wastewater management to all its customers in a
cost-effective manner. Agencies throughout the state, including the Sanitation District,
use engineering estimates of average loadings (wastewater Flowrates and strength data
according to use category)to proportionately allocate wastewater management costs and
minimize administrative expenses. Water suppliers have established more aggressive
water conservation measures in response to drought conditions and, therefore, it is
prudent to review the wastewater loadings at this time and update them, if necessary, to
ensure that they accurately reflect current wastewater characteristics. California
Association of Sanitation Agencies (CASA) has coordinated a statewide wastewater flow
and loading study that is funded by participating sanitation agencies across the state.
The cost of the study is shared amongst participating agencies in proportion to discharge
volume. The estimated total cost of the first phase of the study is $375,000. The
Sanitation District contributed $82,500 toward the cost of the first phase of the study. In
return, the Sanitation District is participating in structuring the study and will have access
to the results of the study.
CASA is now preparing for Phasel B of the study. At the June 28, 2017 Board of Directors
(Board) meeting, the Sanitation District's Board approved the on-going participation in
CASA's wastewater flow and loading study and the participation agency pledge of
$83,600. Phase 1 B consists of a pilot study that is included in the original contract as an
optional task requiring funding by each of the participating agencies. The pilot study will
be designed to characterize flow and loads from single family and multi-family residential
areas. The Los Angeles County Sanitation District has been chosen to serve as the site
for the pilot study.
RELEVANT STANDARDS
Ensure the public's money is wisely spent
Page 1 of 2
PROBLEM
Water suppliers have established more aggressive water conservation measures in
response to drought conditions; therefore, it is prudent to review the wastewater loadings
and update them, if necessary, to ensure that they accurately reflect current wastewater
characteristics.
PROPOSED SOLUTION
CASA has coordinated a statewide wastewater flow and loading study to be funded by
participating sanitation agencies across the state.
TIMING CONCERNS
In order to move forward with Phase 1 B of the wastewater flow and loading study, CASA
needed the commitment from the Sanitation District no later than July 151.
RAMIFICATIONS OF NOT TAKING ACTION
Without the commitment of the Sanitation District, the sampling pilot study would not be
able to move forward and maintain the timeline that is needed to collect accurate flow and
loading information.
PRIOR COMMITTEE/BOARD ACTIONS
June 2017—The Board approved a contribution of$83,600 toward the cost of Phase 1 B
of the flow and loading study.
November 2016 —The Board approved a contribution of$82,500 toward the cost of the
first phase of the flow and loading study.
FINANCIAL CONSIDERATIONS
The contribution pledge of $83,600 had not been budgeted. However, budgeted funds
are available from other budgeted line items with expected savings and, upon Board
approval, these funds were transferred to cover this item. In total, actual operating costs
for FY 2016-17 will not exceed the annual operating budget.
ATTACHMENT
The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.coml with the complete agenda package:
Participating Agency Contribution Pledge Form —CASA Flow and Loading Study
Page 2 d 2
California Association of Sanitation Agencies
Flow and Loading Study Project
Participating Agency Contribution Pledge Form
Phase 1B
Please Respond by August 1, 2017
Agency: Orange County Sanitation District
Contact Name: Lorenzo Tyner, Director of Finance &Administrative Services
Telephone &
Email: (714)593-7550 Ityner@ocsd.com
My agency is committed to contributing the following amount to Phase I of the Flow and
Loading Study project being managed by CASA. I understand that CASA will be sending
an invoice (or series of invoices)for the following total contribution amount in the future:
$83,600.00
The relative agency contribution levels have been determined per the funding share
agreement that was previously distributed to all counsel.
Please return Contribution Commitment Form to:
Adam D. Link, CASA Director of Government Affairs
1225 81b Street,Suite 595
Sacramento, CA 95814
Telephone:(916)446-0388
E-Mail: alink@casaweb.org
You do not need to send a check at this time.
You will receive an invoice based upon your pledge.
Approved at OCSD Board of Directors Meeting of June 28, 2017
Signature: ��C�
I Gregory C. Sebourn, PLS Board Chairman
Date: June 28, 2017
Thank You!
ADMINISTRATION COMMITTEE Meeting Date To ad.of Dir.
07 2,17 —
AGENDA REPORT em Number Iem Number
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Celia Chandler, Director of Human Resources
SUBJECT: HUMAN RESOURCES —WORKFORCE PLANNING, SAFETY AND
SECURITY
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 Planning, Safety and Security.
RELEVANT STANDARDS
• Provide professional growth & development
• Positive employer, employee relations
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the
complete agenda package:
N/A
Page 1 of 1
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
CARS 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 US Environmental Protection Agency
FOG Fats, Oils, and Grease
gpd gallons per day
GWRS Groundwater Replenishment System
ICS Incident Command System
IERP Integrated Emergency Response 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 & Maintenance
OCCOG Orange County Council of Governments
OCHCA Orange County Health Care Agency
OCSD Orange County Sanitation District
OCWD Orange County Water District
OOBS Ocean Outfall Booster Station
OSHA Occupational Safety and Health Administration
PCSA Professional Consultant/Construction Services Agreement
PDSA Professional Design Services Agreement
POTW Publicly Owned Treatment Works
ppm parts per million
PSA Professional Services Agreement
RFP Request For Proposal
RWQCB Regional Water Quality Control Board
Glossary of Terms and Abbreviations
SARFPA Santa Ana River Flood Protection Agency
SARI Santa Ana River Interceptor
SARWQCB Santa Ana Regional Water Quality Control Board
SAW PA Santa Ana Watershed Project Authority
SCADA Supervisory Control And Data Acquisition
SCAP Southern California Alliance of Publicly Owned Treatment Works
SCAQMD South Coast Air Quality Management District
SOCWA South Orange County Wastewater Authority
SRF Clean Water State Revolving Fund
SSMP Sewer System 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
W ERF Water Environment & Reuse Foundation
WIFIA Water Infrastructure Finance and Innovation Act
WIIN Water Infrastructure Improvements for the Nation Act
W RDA Water Resources Development Act
Activated sludge process — A secondary biological wastewater treatment process where
bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume
dissolved nutrients in the wastewater.
Benthos —The community of organisms, such as sea stars, worms, and shrimp, which live on,
in, or near the seabed, also known as the benthic zone.
Biochemical Oxygen Demand (BOD) — The amount of oxygen used when organic matter
undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of
organic matter in water.
Biogas—A gas that is produced by the action of anaerobic bacteria on organic waste matter in a
digester tank that can be used as a fuel.
Biosolids—Biosolids are nutrient rich organic and highly treated solid materials produced by the
wastewater treatment process. This high-quality product can be recycled as a soil amendment on
farmland or further processed as an earth-like product for commercial and home gardens to
improve and maintain fertile soil and stimulate plant growth.
Glossary of Terms and Abbreviations
Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of
assets. Also includes treatment improvements, additional capacity, and projects for the support
facilities.
Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but
also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most
common bacteria in wastewater.
Collections system— In wastewater, it is the system of typically underground pipes that receive
and convey sanitary wastewater or storm water.
Certificate of Participation (COP)—A type of financing where an investor purchases a share of
the lease revenues of a program rather than the bond being secured by those revenues.
Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic
wastewater contaminants.
Dilution to Threshold (DIT) — The dilution at which the majority of people detect the odor
becomes the D/T for that air sample.
Greenhouse Gases (GHG) — In the order of relative abundance water vapor, carbon dioxide,
methane, nitrous oxide, and ozone gases that are considered the cause of global warming
("greenhouse effect').
Groundwater Replenishment System (GWRS) — A joint water reclamation project that
proactively responds to Southern California's current and future water needs. This joint project
between the Orange County Water District and the Orange County Sanitation District provides 70
million gallons per day of drinking quality water to replenish the local groundwater supply.
Levels Of Service (LOS) — Goals to support environmental and public expectations for
performance.
N-Nitrosodimethylamine (NDMA) — A N-nitrosamine suspected cancer-causing agent. It has
been found in the Groundwater Replenishment System process and is eliminated using hydrogen
peroxide with extra ultra-violet treatment.
National Biosolids Partnership (NBP)—An alliance of the National Association of Clean Water
Agencies and Water Environment Federation, with advisory support from the US Environmental
Protection Agency. NBP is committed to developing and advancing environmentally sound and
sustainable biosolids management practices that go beyond regulatory compliance and promote
public participation to enhance the credibility of local agency biosolids programs and improved
communications that lead to public acceptance.
Plume — A visible or measurable concentration of discharge from a stationary source or fixed
facility.
Glossary of Terms and Abbreviations
Publicly Owned Treatment Works (POTW) —A municipal wastewater treatment plant.
Santa Ana River Interceptor(SARI) Line —A regional brine line designed to convey 30 million
gallons per day of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean
for disposal, after treatment.
Sanitary sewer—Separate sewer systems specifically for the carrying of domestic and industrial
wastewater. Combined sewers carry both wastewater and urban runoff.
South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that
develops plans and regulations designed to achieve public health standards by reducing
emissions from business and industry.
Secondary treatment — Biological wastewater treatment, particularly the activated sludge
process, where bacteria and other microorganisms consume dissolved nutrients in wastewater.
Sludge—Untreated solid material created by the treatment of wastewater.
Total Suspended Solids (TSS)—The amount of solids floating and in suspension in wastewater.
Trickling filter — A biological secondary treatment process in which bacteria and other
microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in
wastewater as it trickles over them.
Urban runoff—Water from city streets and domestic properties that carry pollutants into the storm
drains, rivers, lakes, and oceans.
Wastewater—Any water that enters the sanitary sewer.
Watershed—A land area from which water drains to a particular water body. The Orange County
Sanitation District's service area is in the Santa Ana River Watershed.