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 Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1.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