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HomeMy WebLinkAbout11-16-2016 Steering Committee Agenda Packet.pdf Orange County Sanitation District Wednesday, November 16, 2016 Regular Meeting of the •' " " 5:00 P.M. STEERING COMMITTEE Administration Building Conference Rooms A&B 10844 Ellis Avenue Fountain Valley, CA 92708 (714)593-7433 AGEND0 CALL TO ORDER 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 at the back of the 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 Directors. These reports are for information only and require no action by the Directors. 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 Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1.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 regular meeting of the Steering Committee held on October 26, 2016. NON-CONSENT CALENDAR: 2, SALARY RANGE ADJUSTMENTS FOR NON-EXEMPT CONFIDENTIAL EMPLOYEES (Jim Herberg) RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 16-25, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Approving Salary and Benefit Adjustments for Unrepresented Non-Exempt Confidential Employees for Fiscal Years 2016/2017, 2017/2018 & 2018/2019." 11/16/2016 Sleenag Committee Agenda Page 1 of 5 3. SALARY RANGE ADJUSTMENTS FOR EXEMPT LEVEL CONFIDENTIAL EMPLOYEES (Jim Herberg) RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 16-26, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Approving Salary and Benefit Adjustments for Unrepresented Exempt Confidential Employees for Fiscal Years 2016/2017, 2017/2018 & 2018/2019." 4. EXECUTIVE MANAGEMENT TEAM COMPENSATION AND BENEFITS AND MANAGER GROUP COMPENSATION (Jim Herberg) RECOMMENDATION: Recommend to the Board of Directors to: A. Adopt Resolution No. OCSD 16-27 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving changes to the salary schedule, salary increases, performance-based increases, and the distribution of any remaining funds based on changes to scope, duties, or responsibilities for At-Will Executive Management Team employees for Fiscal Years 2016-2017, 2017-2018, and 2018-2019," authorizing the General Manager to implement a salary structure adjustment for Fiscal Year 2016 to bring Executive Management Team salary ranges in alignment with the market, 2.5% salary increases and range adjustments in Fiscal Years 2017 and 2018, and increases to benefits. B. Adopt Resolution No. OCSD 16-28 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving changes to the salary schedule, salary increases, performance-based increases, and the distribution of any remaining funds based on changes to scope, duties, or responsibilities for unrepresented management employees for Fiscal Years 2016-2017, 2017-2018, and 2018-2019," authorizing the General Manager to implement a salary structure adjustment for Fiscal Year 2016 to bring the Manager Group salary ranges in alignment with the market, 2.5% salary increases and range adjustments in Fiscal Years 2017 and 2018, and minor increases to benefits. 5. GENERAL MANAGER COMPENSATION AND BENEFITS (John Nielsen) RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 16-29 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving salary increase, salary range adjustment, and changes to the benefits for the General Manager for Fiscal Years 2016 to 2017 and 2017 to 2018," authorizing the Board Chair to implement a base building salary increase of 8% and a salary range adjustment commencing in the first pay period of July 2016 for fiscal year 2016 to 2017 and a base building salary increase of 8% and a salary range adjustment in the first pay period of July 2017 for fiscal year 2017 to 2018 for a total salary cost of $39,429 and an added benefits cost of $24,000 for 11/16/2016 Sleenag Committee Agenda Page 2 of 5 both fiscal years. Compensation and benefits costs including impact to existing benefits of an amount not to exceed $76,448. INFORMATION ITEMS: None. CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations,pending orpotential litigation,or personnel matters,pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a)purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives;or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. (1) CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8) Property: 10950 Virginia Cir. Fountain Valley, CA -APN No.156-165-05; 10870 Spencer Ave. Fountain Valley, CA- APN No.156-163-07; 18480 Pacific St. Fountain Valley, CA- APN No.156-165-04; 18430 Pacific St. Fountain Valley, CA- APN No.156-165-06; 18370 Pacific St. Fountain Valley, CA- APN No.156-165-08; 18429 Pacific St. Fountain Valley, CA- APN No.156-163-09; 18410 Bandilier Cir. Fountain Valley, CA-APN No.156-163-10; 18368 Bandilier Cir. Fountain Valley, CA-APN No.156-163-11; 10700 Spencer St. Fountain Valley, CA -APN No.156-163-16; 10700 Spencer Ave. Fountain Valley, CA- APN No.156-154-07; 18350 Mt. Langley St. Fountain Valley, CA - APN No.156-154-08; 18386 Mt. Langley St. Fountain Valley, CA - APN No.156-154-06; 18385 Bandilier Cir. Fountain Valley, CA-APN No.156-163-12; 18401 Bandilier Cir. Fountain Valley, CA-APN No.156-163-13; 18424 Mt. Langley St. Fountain Valley, CA - APN No.156-154-05; 18435 Bandilier Cir. Fountain Valley, CA-APN No.156-163-14; 18475 Bandilier Cir. Fountain Valley, CA-APN No.156-163-15; 10725 Ellis Ave. Fountain Valley, CA- APN No.156-154-04; and 10540 Talbert Ave. Fountain Valley, CA - APN No.156-151-03 Agency negotiators: General Manager, Jim Herberg; Director of Engineering, Rob Thompson; Engineering Managers, Kathy Millea and Jeff Mohr; CIP Project Manager, Wendy Sevenandt; Kevin Turner and John Gallivan, Cushman and Wakefield. 11/16/2016 Sleenng Committee Agenda Page 3 of 5 Negotiating parties: Valley, Business Park, APN Nos. 156-165-05, 156-165-06, 156-163-07; DK-USA LLC, APN No.156-165-04; Fountain Valley Industrial Parcel 13, APN No.156-165-08; Sukut Real Properties LLC, APN Nos. 156-163-09, 156-163-10, 156-163-11; The Ins Trust Shabtai, Nevon, APN No. 156-163-16; The Ins Trust, APN No. 156-154-07; K & A Investments LP, APN No. 156-154-08; Fountain Valley Star LLC, APN No. 156-154-06; TN Sheet Metal Inc., APN No. 156-163-12; 18401 Bandilier LLC, APN No. 156-163-13; Phone Lilly Lin-Lin TR, APN No. 156-154-05; JDK Partners, APN No. 156-163-14; Chandler Real Properties, APN No. 156-163-15; Ellis Avenue LLC, APN No. 156-154-04; and SFII Fountain Valley LLC, APN No. 156-151-03 Under negotiation: Instruction to negotiator will concern price and terms of payment. RECONVENE IN REGULAR SESSION. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT, To the Steering Committee meeting scheduled for Wednesday, December 14, 2016 at 5:00 p.m. 11/16/2016 Sleenag Committee Agenda Page 4 of 5 Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714)593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, and on the Sanitation District's website at www.ocsd.com, 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 a Committee or Board 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(a.ocsd.cem For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherberp/glocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rghirelli(docsd.com Director of Engineering Rob Thompson (714)593-7310 rthompson6biocsd.com Director of Environmental Services Jim Colston (714)593-7450 icelston(Wocsd.com Director of Finance and Lorenzo Tyner (714)593-7550 Itvnerrglocsd.com Administrative Services Director of Human Resources Celia Chandler (714)593-7202 cchandleriBoosd.com Director of Operations&Maintenance Ed Torres 714 593-7080 etorres ocsd.com 11/16/2016 Steering Committee Agenda Page 5 of 5 ITEM NO. 1 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, October 26, 2016 at 5:00 p.m. A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Chair Nielsen on Wednesday, September 28, 2016 at 5:05 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: John Nielsen, Chair Jim Herberg, General Manager Greg Sebourn, Vice-Chair Bob Ghirelli, Assistant General Manager Keith Curry, Administration Committee Celia Chandler, Director of Human Chair Resources Tom Beamish, Member-At-Large Jim Colston, Director of Environmental Lucille Kring, Member-At-Large Services David Shawver, Member-At-Large Rob Thompson, Director of Engineering Ed Torres, Director of Operations & COMMITTEE MEMBERS ABSENT: Maintenance John Withers, Operations Committee Lorenzo Tyner, Director of Finance & Chair Administrative Services Kelly Lore, Clerk of the Board Marc Brown Jennifer Cabral Michael Dorman Al Garcia Laurie Klinger Tina Knapp Mark Manzo Kathy Millea Jeff Mohr Andrew Nau OTHERS PRESENT: Brad Hogin, General Counsel Laura Kalty, Liebert Cassidy Whitmore PUBLIC COMMENTS: No public comments were provided. 10/26/2016 Steering Committee Minutes Page 1 of 5 REPORTS: Chair Nielsen did not provide a report. General Manager Jim Herberg 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 September 28, 2016 Regular Steering Committee Meeting. AYES: Beamish; Curry; Kring; Nielsen; Sebourn; and Shawver NOES: None ABSTENTIONS: None ABSENT: Withers 2. STRATEGIC PLAN UPDATE (Robert Ghirelli) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Strategic Plan Update. AYES: Beamish; Curry; Kring; Nielsen; Sebourn; and Shawver NOES: None ABSTENTIONS: None ABSENT: Withers NON-CONSENT CALENDAR: 3. SUCCESSOR MEMORANDUMS OF UNDERSTANDING FOR THE SUPERVISOR & PROFESSIONAL GROUPS (Celia Chandler) Chief Negotiator, Laura Kalty (Liebert Cassidy Whitmore), stated that the presented MOU represents the direction given by the Board of Directors. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Adopt Resolution No. OCSD 16-21, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Supervisory and Professional Management Group (SPMG), for Fiscal Years 2016/2017, 2017/2018 & 201812019"; and 10/26/2016 Steering Committee Minutes Page 2 of 5 B. Direct staff to finalize and sign the Memorandum of Understanding (MOUs) between Orange County Sanitation District and the two (2) SPMG bargaining units. AYES: Beamish; Curry; Kring; Nielsen; Sebourn; and Shawver NOES: None ABSTENTIONS: None ABSENT: Withers 4. SUCCESSOR MEMORANDUMS OF UNDERSTANDING FOR THE ORANGE COUNTY EMPLOYEES ASSOCIATION (Celia Chandler) Chief Negotiator, Laura Kalty (Liebert Cassidy Whitmore), stated that the presented MOU represents the direction given by the Board of Directors. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Adopt Resolution No. OCSD 16-22, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Orange County Employees Association (OCEA) for Fiscal Years 2016/2017, 2017/2018 & 2018/2019", and B. Direct staff to finalize and sign the Memoranda of Understanding (MOUs) between Orange County Sanitation District and the three (3) OCEA bargaining units. AYES: Beamish; Curry; Kring; Nielsen; Sebourn; and Shawver NOES: None ABSTENTIONS: None ABSENT: Withers 5. SUCCESSOR MEMORANDUM OF UNDERSTANDING FOR THE INTERNATIONAL UNION OF OPERATING ENGINEERS — LOCAL 501 (Celia Chandler) Chief Negotiator, Laura Kalty (Liebert Cassidy Whitmore), stated that the presented MOU represents the direction given by the Board of Directors. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Adopt Resolution No. OCSD 16-23, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memorandum of Understanding between the Orange County Sanitation 10/26/2016 Steering Committee Minutes Page 3 of 5 District and the International Union of Operating Engineers, Local 501 for Fiscal Years 2016/2017, 2017/2018 & 2018/2019"; and B. Direct staff to finalize and sign the Memorandum of Understanding (MOUs) between Orange County Sanitation District and the Local 501 bargaining unit. AYES: Beamish; Curry; Kring; Nielsen; Sebourn; and Shawver NOES: None ABSTENTIONS: None ABSENT: Withers CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54957.6, 54956.8 & 54956.9(d)(1): The Committee convened in closed session at 5:10 p.m. to discuss seven items. Items No. 1; 6 & 7 were not heard. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections 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 6:03 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: The Chair declared the meeting adjourned at 6:04 p.m. to the next Steering Committee meeting to be held on Wednesday, November 16, 2016 at 5:00 p.m. 10/26/2016 Steering Committee Minutes Page 4 of 5 Submitted by: Kelly Lore Clerk of the Board 10/26/2016 Steering Committee Minutes Page 5 of 5 STEERING COMMITTEE Meeting Dare TOBd.OfDir. 11/16/16 11/16/16 AGENDA REPORT ItemNumber IemNumber z Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: SALARY RANGE ADJUSTMENTS FOR NON-EXEMPT CONFIDENTIAL EMPLOYEES GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 16-25, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Approving Salary and Benefit Adjustments for Unrepresented Non-Exempt Confidential Employees for Fiscal Years 2016/2017, 2017/2018 & 2018/2019:' BACKGROUND Confidential employees perform duties and responsibilities that support Orange County Sanitation District (Sanitation District) management with labor relations. Confidential employees are not represented by a bargaining unit and meet directly with the General Manager regarding terms and conditions of employment. The work and duties performed by non-exempt confidential employees aligns with that of employees in the Orange County Employees Association (OCEA) bargaining units; however, due to their job duties in support of the labor relations program, confidential employees are not represented by a bargaining unit. Therefore, though they are in separate groups, unrepresented non-exempt confidential employees' wages and benefits have historically aligned with represented employees' negotiated wages and benefits in the OCEA groups. The General Manager is proposing the following salary adjustments for non-exempt confidential employees that align with represented employee wages and benefits. • Salary Increases (3-Year Cost: $24,000) — 2.5% salary increase in Year 1; 2.5% salary increase in Year 2; and 2.5% salary increase in Year 3. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Competitive compensation and benefits • Highly qualified, well trained, motivated, and diverse workforce • Positive employer, employee relations • Provide professional growth & development Page 1 of 3 PROBLEM The MOUs between the Sanitation District and similarly situated groups in the OCEA bargaining units that became effective on July 1, 2014 expired on June 30, 2016. Successor MOUs were recently approved by the Board for the similarly situated OCEA groups, including salary increases for each of the three years of the agreements. Terms for the similarly situated non-exempt confidential group employees have not yet been approved. PROPOSED SOLUTION Adopt Resolution No. OCSD 16-25, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving Salary and Benefit Adjustments for Unrepresented Non-exempt Confidential Employees for Fiscal Years 2016/2017, 2017/2018 & 2018/2019." TIMING CONCERNS Labor agreements including salary increases for the corresponding represented groups were approved at the October 26, 2016 Board of Directors meeting. RAMIFICATIONS OF NOT TAKING ACTION • Potential labor instability • Possible impacts to morale • Inconsistency in compensation between represented and unrepresented classifications PRIOR COMMITTEE/BOARD ACTIONS October 2016 -Approved Resolution OCSD 16-22, which provided salary adjustments to similarly situated groups in the OCEA bargaining units for Fiscal Years 2016/2017, 2017/2018, and 2018/2019. February 2015 - Approved Resolution OCSD 15-05, which provided salary adjustments to non-exempt confidential employees for Fiscal Years 2014/2015 and 2015/2016 based on similarly situated groups. ADDITIONAL INFORMATION There is currently one (1) non-exempt confidential employee at the Sanitation District in one (1) classification, in addition to one (1) vacant position. Confidential employees are those employees who, with authorized access, assist and act in a confidential capacity to and for persons who formulate, determine, and effectuate management policies with respect to labor relations. Page 2 of 3 Non-exempt confidential employees hold the following classifications: Human Resources Assistant Program Assistant (no current incumbent) Confidential employees are not represented by a bargaining unit; instead, confidential employees represent themselves as a group in informal discussions with the Sanitation District's General Manager regarding wages, hours, and other terms and conditions of employment. The General Manager recommends the following changes: • Salary o Year 1 —2.5% Salary Increase, retroactive to the first pay period of July 2016. o Year 2—2.5% Salary Increase, effective the first pay period of July 2017. o Year 3—2.5% Salary Increase, effective the first pay period of July 2018. CEQA N/A FINANCIAL CONSIDERATIONS The cost of the salary increase for non-exempt confidential employee classifications is approximately $24,000 in salary costs over the three-year term. The total compensation cost is approximately $28,000 over the three-year term. This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. ATTACHMENT The following aftachment(s)are attached in hard copy and may also be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: • Resolution No. OCSD 16-25 • Current (FY 2015-16) Salary Schedule for Confidential Group • Proposed Salary Schedules for Confidential Group for FY 2016-17, FY 2017-18, and FY 2018-19 Page 3 of 3 RESOLUTION NO. OCSD 16-25 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING SALARY AND BENEFIT ADJUSTMENTS FOR UNREPRESENTED NON-EXEMPT CONFIDENTIAL EMPLOYEES FOR FISCAL YEARS 2016/2017, 2017/2018 & 2018/2019 WHEREAS, there are fourteen (14) employees in the confidential employees job classifications at the Orange County Sanitation District ("OCSD") who, with authorized access, assist and act in a confidential capacity to and for persons who formulate, determine, and effectuate management policies with respect to labor relations; and WHEREAS, there is one (1) confidential employee holding a non-exempt classification, in addition to one (1) additional position that is currently vacant; and WHEREAS, non-exempt confidential employees are unrepresented and meet directly with the General Manager about terms and conditions of employment; and WHEREAS, the General Manager recently entered into discussions with the non- exempt confidential employees and completed negotiations in October 2016, which resulted in agreed upon proposed changes to wages and benefits that align with those agreed upon for represented employees. NOW, THEREFORE, in consideration thereof, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER THE FOLLOWING: 1. That the Board of Directors hereby authorizes and approves the following changes to wage and benefits for non-exempt confidential employees, which shall become effective as noted: a) Salaries • To align with similarly situated represented employee classifications, non-exempt confidential employees' salaries shall be adjusted per the following: • Year 1 — 2.5% Salary Increase, retroactive to the first pay period of July 2016. • Year 2 — 2.5% Salary Increase, effective the first pay period of July 2017. • Year 3 — 2.5% Salary Increase, effective the first pay period of July 2018. OCSD 16-25-1 PASSED AND ADOPTED at a regular meeting of the Board of Directors held November 16, 2016. John Nielsen Board Chairman ATTEST: Kelly A. Lore Clerk of the Board OCSD 16-25-2 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 16-25 was passed and adopted at a regular meeting of said Board on the 161h day of November 2016, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 161h day of November 2016. Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District OCSD 16-25-3 Orange County Sanitation District Classification and Compensation Plan Rates Effective July 1,2015 CONFIDENTIAL GROUP Pay STEP STEP STEP STEP STEP Classification Grade 1 2 3 4 5 Human Resources Supervisor CON90 $ 57.46 $ 60.34 1 $ 63.351 $ 66.51 $ 69.85 $ 119,516.80 $ 125,507.20 $ 131,768.00 $ 138,340.80 $ 145,288.005 Principal HR Analyst I CON84 1 $ 49.531 $ 52.01 1 $ 54.61 1 $ 57.34 $ 60.21 $ 103,022.40 $ 108,180.80 $ 113,588.80 $ 119,267.20 $ 125,236.801 Clerk of the Board CON80 $ 44.89 $ 47.13 $ 49.48 $ 51.97 $ 54,50 $ 93,371.20 $ 98,030.40 $ 102,918.40 $ 108,097.60 $ 113,484.80 Senior Human Resources Analyst I CON76 $ 40.66 1 $ 42.681 $ 44.821 $ 47.06 $ 49.41 $ 84,572.80 $ 88,774.40 $ 93,225.60 $ 97,884.80 $ 102,772.80 Deputy Clerk of the Board 1 CON73 1 $ 37.751 $ 39.64 1 $ 41.621 $ 43.70 $ 45.88 Secretary to the General Manager I CON73 1 $ 78,520.00 1 $ 82,451.20 1 $ 86,569.60 $ 90,896.00 $ 95,430.40 Human Resources Analyst I CON70 1 $ 35.061 $ 36.821 $ 38.661 $ 40.60 $ 42.63 $ 72,924.80 $ 76,585.60 $ 80,412.80 $ 84,448.00 $ 88,670.40 Human Resources Assistant CON67 $ 33.86 1 $ 35.561 $ 37.341 $ 39.20 $ 41.10 $ 70,428.80 $ 73,964.80 $ 77,667.20 $ 81,536.00 $ 85,612.80 Program Assistant CON56 $ 25.82 1 $ 27.101 $ 28.461 $ 29.87 $ 31.30 $ 53,705.60 $ 56,368.00 $ 59,196.80 $ 62,129.60 $ 65,249.60 Hkde,t 6160-HR\HROpen\Comp8Class\Compensation\Salary Documents2016-201TSalary Scheduler -ConfideMialrev110716 ➢29115 Orange County Sanitation District Classification and Compensation Plan PROPOSED Rates Effective July 8,2016 CONFIDENTIAL GROUP Pay STEP STEP STEP STEP STEP Classification Grade 1 2 3 4 5 Human Resources Supervisor CON90 1 $ 58.90 1 $ 61.851 $ 64.931 $ 68.171 $ 71.60 S 122,512.001 $ 128,648.00 $ 135,054.40 1 $ 141,]93.50 $ 148,928.00 PHucipel HR Analyst I CON84 1 $ 50.77 1 $ 53.311 $ 55.98 $ 58.77 $ 105,601.601 $ 110,884.80 $ 116,438.40 1 $ 122,241.60 $ 128,377.60 Clerk of the Boats CONaO 1 $ 46.011 $ 48.31 1 $ 50.721 $ 53.27 $ 55.92 $ 95,700.801 $ 100,484.80 $ 105,497.60 1 0 $ 116,313.60 Senior Human Resources Analyst I CON76 1 $ 41.681 $ 43.751 $ 45.94 1 $ 48.241 $ 50.65 $ 86,694.40 1 $ 91,000.00 $ 95,555.20 $ 700,339.20 $ 105,352.00 Deputy Clerk of the Board 1 CON73 1 $ 38.691 $ 40.631 $ 42.661 $ 44.791 $ 47.03 Secretary to the General Manager I CON73 1 $ 80,475,201 $ 84.510.401 $ 88,732,801 $ 93,163.201 $ 97,82240 Human Resources Analyst I CON70 1 $ 35.941 $ 37.741 $ 39.631 $ 41.62 $ 4370 $ 74,755.201 $ 78,499.20 $ 82,430.40 $ 86,569.60 $ 90,896.00 Human Resources Assistant I CON67 1 $ 3471 1 $ 36.451 $ 38.271 $ 40.18 $ 42A9 $ 72,196.801 $ 75,816.00 $ 79,601,60 $ 83,5]4.40 $ 87,755.20 Program Assistant I CON56 1 $ 26.471 $ 27.781 $ 29.171 $ 30.62 $ 55,057.601 $ 57,782.40 $ 60.673.601 $ 63,689.601 $ 66,872.00 Orange County Sanitation District Classification and Compensation Plan PROPOSED Rates Effective First Pay Period of July 2017 CONFIDENTIAL GROUP Pay STEP STEP STEP STEP STEP Classification Grade 1 2 3 4 5 Human Re sources Supervisor CON90 I S 60.37 $ 63.401 $ 66.55 $ 69.87 $ 73.39 S 125,569.601 $ 131.872.00 1 $ 138,424.00 1 $ 145,329.60 $ 152,651.20 PHncipal HR Analyst I CON89 1 $ 52.041 $ 54.64 1 $ 57.381 $ 60.24 $ 108,243.20 1 $ 113,651.20 $ 119,350.401 $ 125,299.20 1 $ 131,580.80 Clerk of the Board I CON80 1 $ 47.161 $ 49.521 $ 51.991 $ 54.601 $ 57.32 $ 98,092.801 $ 103,001.60 $ 108,139.20 1 $ 113,568.00 $ 119,225.80 Senior Human Resources Analyst I CON76 1 $ 42.721 $ 44.84 1 $ 47.091 $ 49.451 $ 51.92 $ 88,857.60 1 $ 93,267.20 $ 97,947.20 1 $ 702,856.00 $ 10],883.60 Deputy Clerk of the Board 1 CON73 1 $ 39.661 $ 41.651 $ 43.731 $ 45.911 $ 48.21 Secretary to the General Manager I CON73 1 $ 82,492,801 $ 86,632.001 $ 90,958,401 $ 95,492.801 $ 100,276.80 Human Rewurces Analyst I CON70 1 $ 36.841 $ 38.68 1 $ 40.621 $ 42.68 $ 44.79 $ 76,627.201 $ 80,454.40 $ 84,489.60 I $ 88,]32.80 $ 93,163.20 Human Resources Assistant CON67 1 $ 35.58 1 $ 37.361 $ 39.231 $ 41.18 $ 43.24 $ 74,006.401 $ 77,708.80 $ 81,598.40 $ 85,654.40 $ 89,939.20 Program Assistant I CON56 1 $ 27.131 $ 28.471 $ 29,901 $ 31.39 $ 56,430.401 $ 59,217.60 $ 62.192.001 $ 65,291.201 $ 68,536.00 Orange County Sanitation District Classification and Compensation Plan PROPOSED Rates Effective First Pay Period of July 2018 CONFIDENTIAL GROUP Pay STEP STEP STEP STEP TE SP Classification Grade 1 2 3 4 5 Human Resources Supemsor I CON90 1 $ 61.881 $ 64.991 $ 68.21 1 $ 71.62 $ 128,710.401 $ 135,179.20 $ 141.876.801 $ 148,969.601 $ 156,457.60 Principal HR Analyst CON84 1 $ 53.34 1 $ 56.011 $ 58.81 $ 61.75 $ 110,947.201 $ 116.500.80 $ 122,324.80 $ 128,440.00 1 $ 134,867.20 Clerk of the Board I CON80 1 $ 48.341 $ 50,761 $ 53.29 $ 55.9] $ 100,547.20 1 $ 105,58080 $ 110,843.201 $ 116,417.601 $ 122,200.00 Senior Human Resources Analyst I CON78 1 $ 43.791 $ 45.961 $ 48.27 $ 50.691 $ 53.22 $ 91,083.201 $ 95.596.80 $ 100401.60 $ 105,435.20 $ 110,897.60 Deputy Clerk of the Board CON73 1 $ 40.651 $ 42.691 $ 44.821 $ 47.06 1 $ 49A2 Secretary to the General Manager I CON73 1 $ 84,552.01 $ 88,795.201 $ 93,225.601 $ 97,884.801 $ 102,793.60 Human Resources Analyst I CON70 1 $ 37.761 $ 39.651 $ 41.641 $ 43.73 $ 78,540,801 $ 82,472.00 $ 86,611.201 $ 90,958.401 $ 95,492.80 Human Resources Assistant CON67 1 $ 36.47 1 $ 38.291 $ 40.21 1 $ 42.21 1 $ 44.32 $ 75,857.601 $ 79,fi43.20 $ 83,636.80 $ 8],796.80 $ 92,i85.fi0 Program Assistant CON56 1 $ 2T81 1 $ 29A8 1 $ 30.651 $ 32.171 $ 33.77 $ 57,M4.801 $ 60,694.40 $ 63,752.00 $ 66,913.60 1 $ 70,241.60 STEERING COMMITTEE Meeting Date TOBE.Or .Dir. 11/16/16 11/16/16 AGENDA REPORT Item Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: SALARY RANGE ADJUSTMENTS FOR EXEMPT LEVEL CONFIDENTIAL EMPLOYEES GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 16-26, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Approving Salary and Benefit Adjustments for Unrepresented Exempt Confidential Employees for Fiscal Years 2016/2017, 2017/2018 & 2018/2019:' BACKGROUND Confidential employees perform duties and responsibilities that support Orange County Sanitation District (Sanitation District) management with labor relations. Confidential employees are not represented by a bargaining unit and meet directly with the General Manager regarding terms and conditions of employment. The work and duties performed by exempt level confidential employees aligns with that of employees in the Supervisor Group and Professional Group bargaining units; however, due to their job duties in support of the labor relations program, confidential employees are not represented by a bargaining unit. Therefore, though they are in separate groups, unrepresented exempt level confidential employees' wages and benefits have historically aligned with represented employees' negotiated wages and benefits in the Supervisor Group and Professional Group. The General Manager is proposing the following adjustments for exempt level confidential employees that align with represented employee wages and benefits. • Salary Increases (3-Year Cost: $249K) — 2.5% in Year 1; 2.5% salary increase in Year 2; and 2.5% salary increase in Year 3. • Development Pay Increases (3-Year Cost: $16K) - $75.00 per pay period for education; $15.24 per pay period for each certification/license. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Competitive compensation and benefits • Highly qualified, well trained, motivated, and diverse workforce • Positive employer, employee relations • Provide professional growth & development Page 1 of 3 PROBLEM The MOUs between the Sanitation District and similarly situated groups in the Supervisory and Professional Management Group (SPMG) bargaining units that became effective on July 1, 2013 expired on June 30, 2016. Successor MOUs were recently approved by the Board for the similarly situated SPMG groups, including salary increases for each of the three years of the agreements. Terms for the similarly situated exempt level confidential group employees have not yet been approved. PROPOSED SOLUTION Adopt Resolution No. OCSD 16-26, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Approving Salary and Benefit Adjustments for Unrepresented Exempt Confidential Employees for Fiscal Years 2016/2017, 2017/2018 & 2018/2019." TIMING CONCERNS Labor agreements including salary increases for the corresponding represented groups were approved at the October 26, 2016 Board of Directors meeting. RAMIFICATIONS OF NOT TAKING ACTION • Potential labor instability • Possible impacts to morale • Inconsistency in compensation between represented and unrepresented classifications PRIOR COMMITTEE/BOARD ACTIONS October 2016 -Approved Resolution OCSD 16-21, which provided salary adjustments to similarly situated groups in the SPMG bargaining units for Fiscal Years 2016/2017, 2017/2018, and 2018/2019. January 2015 -Approved Resolution OCSD 15-03, which provided salary adjustments to exempt confidential employees for Fiscal Years 2014/2015 and 2015/2016 based on similarly situated groups. ADDITIONAL INFORMATION There are currently thirteen (13) exempt level confidential employees at the Sanitation District in seven (7) classifications. Confidential employees are those employees who, with authorized access, assist and act in a confidential capacity to and for persons who formulate, determine, and effectuate management policies with respect to labor relations. Page 2 of 3 Exempt level confidential employees hold the following classifications: Clerk of the Board Deputy Clerk of the Board Human Resources Analyst Human Resources Supervisor Principal Human Resources Analyst Secretary to the General Manager Senior Human Resources Analyst Confidential employees are not represented by a bargaining unit; instead, confidential employees represent themselves as a group in informal discussions with that Sanitation District's General Manager regarding wages, hours, and other terms and conditions of employment. The General Manager recommends the following changes: • Salary o Year 1 —2.5% Salary Increase, retroactive to the first pay period of July 2016. o Year 2—2.5% Salary Increase, effective the first pay period of July 2017. o Year 3-2.5% Salary Increase, effective the first pay period of July 2018. • Development Pay o Education: $75.00 per pay period, retroactive to the first pay period of July 2016. o Certificates/Licenses: $15.24 per pay period per certificate or license with a maximum of three (3) certificates and/or licenses, retroactive to the first pay period of July 2016. CEQA N/A FINANCIAL CONSIDERATIONS The cost of the salary increase and development pay adjustment is approximately$265K over the three-year term. The total compensation cost is approximately $305K over the three-year term. This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. ATTACHMENT The following attachment(s)are included in have copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Resolution No. OCSD 16-26 • Current (FY 2015-16) Salary Schedule for Confidential Group • Proposed Salary Schedules for Confidential Group for FY 2016-17, FY 2017-18, and FY 2018-19 Page 3 of 3 RESOLUTION NO. OCSD 16-26 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING SALARY AND BENEFIT ADJUSTMENTS FOR UNREPRESENTED EXEMPT CONFIDENTIAL EMPLOYEES FOR FISCAL YEARS 201612017, 2017/2018 & 2018/2019 WHEREAS, there are fourteen (14) employees in the confidential employees job classification at the Orange County Sanitation District ("OCSD") who, with authorized access, assist and act in a confidential capacity to and for persons who formulate, determine, and effectuate management policies with respect to labor relations; and WHEREAS, there are thirteen (13) confidential employees holding exempt level classifications; and WHEREAS, exempt level confidential employees are unrepresented and meet directly with the General Manager about terms and conditions of employment; and WHEREAS, the General Manager recently entered into discussions with the exempt level confidential employees and completed negotiations in October 2016, which resulted in agreed upon proposed changes to wages and benefits that align with those agreed upon for represented employees. NOW, THEREFORE, in consideration thereof, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: 1. That the Board of Directors hereby authorizes and approves the following changes to wage and benefits for exempt level confidential employees, which shall become effective as noted: a) Salaries • To align with similarly situated represented employee classifications, exempt level confidential employees' salaries shall be adjusted per the following: • Year 1 — 2.5% Salary Increase, retroactive to the first pay period of July 2016. • Year 2 — 2.5% Salary Increase, effective the first pay period of July 2017. • Year 3 — 2.5% Salary Increase, effective the first pay period of July 2018. OCSD 16-26-1 b) Development Pay To align with similarly situated represented employee classifications, exempt level confidential employees' development pay shall be adjusted per the following: Development Pay: Education — $75.00 per pay period for advanced degree, retroactive to the first pay period of July 2016; Certification/License — $15.24 per pay period per certification/license with a maximum of three (3), retroactive to the first pay period of July 2016. PASSED AND ADOPTED at a regular meeting of the Board of Directors held November 16, 2016. John Nielsen Board Chairman ATTEST: Kelly A. Lore Clerk of the Board OCSD 16-26-2 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 16-26 was passed and adopted at a regular meeting of said Board on the 161h day of November 2016, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 161h day of November 2016. Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District OCSD 16-26-3 Orange County Sanitation District Classification and Compensation Plan Rates Effective July 1,2015 CONFIDENTIAL GROUP Pay STEP STEP STEP STEP STEP Classification Grade 1 2 3 4 5 Human Resources Supervisor CON90 $ 57.46 $ 60.34 1 $ 63.351 $ 66.51 $ 69.85 $ 119,516.80 $ 125,507.20 $ 131,768.00 $ 138,340.80 $ 145,288.005 Principal HR Analyst I CON84 1 $ 49.531 $ 52.01 1 $ 54.61 1 $ 57.34 $ 60.21 $ 103,022.40 $ 108,180.80 $ 113,588.80 $ 119,267.20 $ 125,236.801 Clerk of the Board CON80 $ 44.89 $ 47.13 $ 49.48 $ 51.97 $ 54,50 $ 93,371.20 $ 98,030.40 $ 102,918.40 $ 108,097.60 $ 113,484.80 Senior Human Resources Analyst I CON76 $ 40.66 1 $ 42.681 $ 44.821 $ 47.06 $ 49.41 $ 84,572.80 $ 88,774.40 $ 93,225.60 $ 97,884.80 $ 102,772.80 Deputy Clerk of the Board 1 CON73 1 $ 37.751 $ 39.64 1 $ 41.621 $ 43.70 $ 45.88 Secretary to the General Manager I CON73 1 $ 78,520.00 1 $ 82,451.20 1 $ 86,569.60 $ 90,896.00 $ 95,430.40 Human Resources Analyst I CON70 1 $ 35.061 $ 36.821 $ 38.661 $ 40.60 $ 42.63 $ 72,924.80 $ 76,585.60 $ 80,412.80 $ 84,448.00 $ 88,670.40 Human Resources Assistant CON67 $ 33.86 1 $ 35.561 $ 37.341 $ 39.20 $ 41.10 $ 70,428.80 $ 73,964.80 $ 77,667.20 $ 81,536.00 $ 85,612.80 Program Assistant CON56 $ 25.82 1 $ 27.101 $ 28.461 $ 29.87 $ 31.30 $ 53,705.60 $ 56,368.00 $ 59,196.80 $ 62,129.60 $ 65,249.60 Hkde,t 6160-HR\HROpen\Comp8Class\Compensation\Salary Documents2016-201TSalary Scheduler -ConfideMialrev110716 ➢29115 Orange County Sanitation District Classification and Compensation Plan PROPOSED Rates Effective July 8,2016 CONFIDENTIAL GROUP Pay STEP STEP STEP STEP STEP Classification Grade 1 2 3 4 5 Human Resources Supervisor CON90 1 $ 58.90 1 $ 61.851 $ 64.931 $ 68.171 $ 71.60 S 122,512.001 $ 128,648.00 $ 135,054.40 1 $ 141,]93.50 $ 148,928.00 PHucipel HR Analyst I CON84 1 $ 50.77 1 $ 53.311 $ 55.98 $ 58.77 $ 105,601.601 $ 110,884.80 $ 116,438.40 1 $ 122,241.60 $ 128,377.60 Clerk of the Boats CONaO 1 $ 46.011 $ 48.31 1 $ 50.721 $ 53.27 $ 55.92 $ 95,700.801 $ 100,484.80 $ 105,497.60 1 0 $ 116,313.60 Senior Human Resources Analyst I CON76 1 $ 41.681 $ 43.751 $ 45.94 1 $ 48.241 $ 50.65 $ 86,694.40 1 $ 91,000.00 $ 95,555.20 $ 700,339.20 $ 105,352.00 Deputy Clerk of the Board 1 CON73 1 $ 38.691 $ 40.631 $ 42.661 $ 44.791 $ 47.03 Secretary to the General Manager I CON73 1 $ 80,475,201 $ 84.510.401 $ 88,732,801 $ 93,163.201 $ 97,82240 Human Resources Analyst I CON70 1 $ 35.941 $ 37.741 $ 39.631 $ 41.62 $ 4370 $ 74,755.201 $ 78,499.20 $ 82,430.40 $ 86,569.60 $ 90,896.00 Human Resources Assistant I CON67 1 $ 3471 1 $ 36.451 $ 38.271 $ 40.18 $ 42A9 $ 72,196.801 $ 75,816.00 $ 79,601,60 $ 83,5]4.40 $ 87,755.20 Program Assistant I CON56 1 $ 26.471 $ 27.781 $ 29.171 $ 30.62 $ 55,057.601 $ 57,782.40 $ 60.673.601 $ 63,689.601 $ 66,872.00 Orange County Sanitation District Classification and Compensation Plan PROPOSED Rates Effective First Pay Period of July 2017 CONFIDENTIAL GROUP Pay STEP STEP STEP STEP STEP Classification Grade 1 2 3 4 5 Human Re sources Supervisor CON90 I S 60.37 $ 63.401 $ 66.55 $ 69.87 $ 73.39 S 125,569.601 $ 131.872.00 1 $ 138,424.00 1 $ 145,329.60 $ 152,651.20 PHncipal HR Analyst I CON89 1 $ 52.041 $ 54.64 1 $ 57.381 $ 60.24 $ 108,243.20 1 $ 113,651.20 $ 119,350.401 $ 125,299.20 1 $ 131,580.80 Clerk of the Board I CON80 1 $ 47.161 $ 49.521 $ 51.991 $ 54.601 $ 57.32 $ 98,092.801 $ 103,001.60 $ 108,139.20 1 $ 113,568.00 $ 119,225.80 Senior Human Resources Analyst I CON76 1 $ 42.721 $ 44.84 1 $ 47.091 $ 49.451 $ 51.92 $ 88,857.60 1 $ 93,267.20 $ 97,947.20 1 $ 702,856.00 $ 10],883.60 Deputy Clerk of the Board 1 CON73 1 $ 39.661 $ 41.651 $ 43.731 $ 45.911 $ 48.21 Secretary to the General Manager I CON73 1 $ 82,492,801 $ 86,632.001 $ 90,958,401 $ 95,492.801 $ 100,276.80 Human Rewurces Analyst I CON70 1 $ 36.841 $ 38.68 1 $ 40.621 $ 42.68 $ 44.79 $ 76,627.201 $ 80,454.40 $ 84,489.60 I $ 88,]32.80 $ 93,163.20 Human Resources Assistant CON67 1 $ 35.58 1 $ 37.361 $ 39.231 $ 41.18 $ 43.24 $ 74,006.401 $ 77,708.80 $ 81,598.40 $ 85,654.40 $ 89,939.20 Program Assistant I CON56 1 $ 27.131 $ 28.471 $ 29,901 $ 31.39 $ 56,430.401 $ 59,217.60 $ 62.192.001 $ 65,291.201 $ 68,536.00 Orange County Sanitation District Classification and Compensation Plan PROPOSED Rates Effective First Pay Period of July 2018 CONFIDENTIAL GROUP Pay STEP STEP STEP STEP TE SP Classification Grade 1 2 3 4 5 Human Resources Supemsor I CON90 1 $ 61.881 $ 64.991 $ 68.21 1 $ 71.62 $ 128,710.401 $ 135,179.20 $ 141.876.801 $ 148,969.601 $ 156,457.60 Principal HR Analyst CON84 1 $ 53.34 1 $ 56.011 $ 58.81 $ 61.75 $ 110,947.201 $ 116.500.80 $ 122,324.80 $ 128,440.00 1 $ 134,867.20 Clerk of the Board I CON80 1 $ 48.341 $ 50,761 $ 53.29 $ 55.9] $ 100,547.20 1 $ 105,58080 $ 110,843.201 $ 116,417.601 $ 122,200.00 Senior Human Resources Analyst I CON78 1 $ 43.791 $ 45.961 $ 48.27 $ 50.691 $ 53.22 $ 91,083.201 $ 95.596.80 $ 100401.60 $ 105,435.20 $ 110,897.60 Deputy Clerk of the Board CON73 1 $ 40.651 $ 42.691 $ 44.821 $ 47.06 1 $ 49A2 Secretary to the General Manager I CON73 1 $ 84,552.01 $ 88,795.201 $ 93,225.601 $ 97,884.801 $ 102,793.60 Human Resources Analyst I CON70 1 $ 37.761 $ 39.651 $ 41.641 $ 43.73 $ 78,540,801 $ 82,472.00 $ 86,611.201 $ 90,958.401 $ 95,492.80 Human Resources Assistant CON67 1 $ 36.47 1 $ 38.291 $ 40.21 1 $ 42.21 1 $ 44.32 $ 75,857.601 $ 79,fi43.20 $ 83,636.80 $ 8],796.80 $ 92,i85.fi0 Program Assistant CON56 1 $ 2T81 1 $ 29A8 1 $ 30.651 $ 32.171 $ 33.77 $ 57,M4.801 $ 60,694.40 $ 63,752.00 $ 66,913.60 1 $ 70,241.60 STEERING COMMITTEE Meeting Dare TOBd.ofDir. 11/16/16 11/16/16 AGENDA REPORT ItemNumber IemNumber a Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: EXECUTIVE MANAGEMENT TEAM COMPENSATION AND BENEFITS AND MANAGER GROUP COMPENSATION CHIEF NEGOTIATOR'S RECOMMENDATION A. Adopt Resolution No. OCSD 16-27 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving changes to the salary schedule, salary increases, performance-based increases, and the distribution of any remaining funds based on changes to scope, duties, or responsibilities for At-Will Executive Management Team employees for Fiscal Years 2016-2017, 2017-2018, and 2018-2019," authorizing the General Manager to implement a salary structure adjustment for Fiscal Year 2016 to bring Executive Management Team salary ranges in alignment with the market, 2.5% salary increases and range adjustments in Fiscal Years 2017 and 2018, and increases to benefits. B. Adopt Resolution No. OCSD 16-28 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving changes to the salary schedule, salary increases, performance-based increases, and the distribution of any remaining funds based on changes to scope, duties, or responsibilities for unrepresented management employees for Fiscal Years 2016-2017, 2017-2018, and 2018-2019," authorizing the General Manager to implement a salary structure adjustment for Fiscal Year 2016 to bring the Manager Group salary ranges in alignment with the market, 2.5% salary increases and range adjustments in Fiscal Years 2017 and 2018, and minor increases to benefits. BACKGROUND Executive Management Team Group There are six (6) Executive Management Team (EMT) employees who provide executive leadership, strategic direction, and department oversight for the Orange County Sanitation District (Sanitation District). EMT employees serve in at-will employment status, which may be terminated at any time, with or without cause, with no liability to the Sanitation District. Currently, the EMT's salary market position is at the 33rd percentile. The General Manager is recommending a one-time structure adjustment to bring the EMT salary ranges in alignment with the market as compared to the Sanitation District's 17 comparison agencies. The structure adjustment will effectively put the top of the EMT salary ranges at the 75th percentile of market. The General Manager is also Page 1 of 6 recommending salary increases of 2.5% and corresponding range increases for Fiscal Year 2017 - 2018, and 2.5% salary increases and corresponding range increases for Fiscal Year 2018 - 2019. A one-time base building performance increase of up to 2.5% for EMT employees with exceptional performance is also being recommended by the General Manager to be applied at his discretion to top performers in 2016. In addition, the General Manager is recommending increases to miscellaneous EMT benefits including an increase in life insurance, a car allowance, and a matching 457(b) contribution for EMT employees who do not currently receive IIS or are assigned to the classic open or PEPRA pension plans. The General Manager is recommending that the Board authorize the General Manager to administer the Board approved EMT pay plan through a pay for performance system with pay range steps. The pay for performance system will only allow for compensation to be paid to EMT employees who meet specific goals assigned by the General Manager related to his District Work Plan and departmental initiatives. Pursuant to the understanding with the EMT members at the beginning of discussions, the salary changes and salary range adjustments would take effect the first pay period in July of the current fiscal year, 2016. Manager Group The 15 manager classifications at the Sanitation District oversee staff within a particular division and align performance with the goals of the agency. Over the past five years, the Sanitation District has reduced the number of managers from 19 to 15, resulting in significant cost savings and increased efficiencies, and broader scopes of responsibilities. Managers are not represented by a bargaining unit and represent themselves as a group in discussions with the General Manager regarding wages, benefits, and other conditions of employment. Currently, the Manager Group's salary market position is at the 55th percentile. The General Manager is recommending a structure adjustment to bring the Manager Group's salary ranges in alignment with the market as compared to the Sanitation District's 17 comparison agencies. The structure adjustment will effectively put the top of the Manager Group salary ranges at the 75th percentile of market. The General Manager is also recommending salary increases of 2.5% and range adjustments for Fiscal Year 2017 - 2018, and 2.5% salary increases and corresponding range increases for Fiscal Year 2018 - 2019. A one-time base building performance increase of up to 2.5% for Manager Group employees with exceptional performance is also being recommended by the General Manager to be applied at his, or his designee's, discretion to top performers in 2016. In addition, the General Manager is recommending minor increases to miscellaneous Manager Group benefits including an increase in life insurance, an increase in Development Pay in alignment with other represented groups, and a matching 457(b) contribution of up to $200 per month for Manager Group employees that do not currently receive IIS or are assigned to the classic open or PEPRA pension plans. Page 2 of 6 The General Manager is recommending that the Board authorize the General Manager to administerthe Board approved Manager Group pay plan through a payfor performance system with pay range steps. The pay for performance system will only allow for compensation to be paid to Manager Group employees who meet specific goals assigned by the Department Heads and that may be related to the General Manager's District Work Plan or departmental initiatives. Pursuant to the understanding with the Manager Group members at the beginning of discussions, the salary changes and salary range adjustments would take effect the first pay period of July in the current fiscal year, 2016. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Competitive compensation and benefits • Highly qualified, well trained, motivated, and diverse workforce • Provide professional growth & development PROBLEM Koff & Associates, an independent Human Resources consulting company, recently evaluated classification and compensation data among the Sanitation District's 17 comparison agencies as part of a comprehensive Classification and Compensation Study (C&C Study). The results of the study indicate that the EMT and Manager Group salaries at the Sanitation District remain well below the 75° percentile. Currently, the EMT are at the 33rd percentile of market, while the Manager Group is at the 55'h percentile as compared to peers in like positions. Data indicates that by the year 2019, 100% of EMT employees and 83% of Management employees will be eligible for retirement, making succession planning, retention, and recruitment high priorities at the Sanitation District. As the District looks to promote employees from the supervisory ranks into Management and EMT positions, these potential internal employees are currently faced with a decision to continue at the Sanitation District or look outside the organization for higher level positions that may be more attractive in the market. In addition, if the Sanitation District seeks to recruit employees from the outside to fill the wave of potential EMT and Manager retirements, concerns loom about the competitiveness of the Sanitation District's pay in the market and its ability to attract and retain top talent. PROPOSED SOLUTION Adopt Resolution No. OCSD 16-27 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving changes to the salary schedule, salary increases, performance-based increases, and the distribution of any remaining funds based on changes to scope, duties or responsibilities for At-Will Executive Management Team employees for Fiscal Year 2016-2017, 2017-2018, and 2018-2019,"and Resolution No. OCSD 16-28 entitled, "A Resolution of the Board of Directors of the Orange County Page 3 of 6 Sanitation District approving changes to the salary schedule, salary increases, performance-based increases, and the distribution of any remaining funds based on changes to scope, duties or responsibilities for unrepresented management employees for Fiscal Year 2016-2017, 2017-2018, and 2018-2019." Based on Board direction, the General Manager entered into discussions with the EMT and Manager Group employees, which resulted in agreed upon proposed changes to the salary structure, proposed changes to wages to include a merit pool, and minor benefit adjustments. RAMIFICATIONS OF NOT TAKING ACTION Risk of losing top talent and of not being able to attract top talent. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Executive Management Team Executive Management Team members are employed on an At-Will basis, and serve at the pleasure of the General Manager. The General Manager is authorized, per the Board's Personnel Policies and Procedures, to periodically adjust the rate of compensation for Executive Management Team members who have signed At-Will agreements so long as no adjustment exceeds the compensation permitted by the applicable salary range. The six (6) At-Will employees of the Sanitation District's EMT are relied upon heavily to provide leadership, strategic direction, and department oversight at the Sanitation District. These individuals serve in key leadership positions that are critical to the success of the agency. These Executive Management Team members hold the following classifications: Executive Management Team Classifications Assistant General Manager Director of Finance &Administrative Services Director of Engineering Director of Operations & Maintenance Director of Human Resources Director of Environmental Services The Sanitation District is committed to maintaining a competitive compensation market position that attracts and retains top employment talent. It is the Sanitation District's Page 4 of 6 philosophy to compensate employees competitively and equitably, and understanding the relative market position assists in that determination. The comprehensive C&C Study recently completed by Koff & Associates revealed that the EMT salaries for all classifications are below the 751h percentile. Over the past five (5) years, the group's aggregate market position has declined from the 601h percentile in 2011 to its current position at the 33rd percentile in 2016. The proposed structure adjustment and 2.5% salary increases in 2017 and 2018 would bring EMT salary ranges in line with the 751h percentile (with the top of the range being at the 7511 percentile) at the end of the three-year period. The ability of employees on the EMT to move through their respective pay ranges will be based on their ability to meet the Sanitation District's goals in a "pay for performance" pay system. Manager Group The 15 classifications that comprise the Sanitation District's Manager Group are relied upon heavily to provide day-to-day leadership to support strategic direction and division management oversight at the Sanitation District. These individuals serve in key leadership positions that are critical to the success of the agency. Manager Group members hold the following classifications: Manager Group Classifications Contracts & Purchasing Manager Controller Engineering Manager (7) Environmental Lab & Ocean Monitoring Manager Human Resources Manager/ Risk Manager Information Technology Manager IT Systems & Operations Manager Maintenance Manager Operations Manager The comprehensive C&C Study recently completed by Koff & Associates revealed that the Manager Group salaries for all classifications are below the 7V percentile. The Manager Group market position has declined from the 70'h percentile in 2011 to its current position at the 55'h percentile in 2016. The proposed structure adjustments and 2.5% salary increases in 2017 and 2018 would bring Manager Group salary ranges in line with the 75th percentile (with the top of the range being at the 75th percentile) at the end of the three-year period. The ability for employees in the Manager Group to move through their respective pay ranges will be based on their ability to meet the Sanitation District's goals in a "pay for performance" pay system. CEQA N/A Page 5 of 6 FINANCIAL CONSIDERATIONS The cost of the structure adjustment, salary increases, and miscellaneous benefit increases are approximately $1.18 million over the three-year term for both EMT and Managers combined. ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (v w .ocsd.com) with the complete agenda package: • Resolution No. OCSD 16-27 (Executive Management Team) • Current Executive Management Team Pay Table • Proposed Executive Management Team Pay Tables, July 2016-July 2018 • Resolution No. OCSD 16-28 (Manager Group) • Current Manager Group Pay Table • Proposed Manager Group Pay Tables, July 2016-July 2018 Page 6 of 6 RESOLUTION NO. OCSD 16-27 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING CHANGES TO THE SALARY SCHEDULE, SALARY INCREASES, PERFORMANCE-BASED INCREASES, AND THE DISTRIBUTION OF ANY REMAINING FUNDS BASED ON CHANGES TO SCOPE, DUTIES, OR RESPONSIBILITIES FOR AT-WILL EXECUTIVE MANAGEMENT TEAM EMPLOYEES FOR FISCAL YEARS 2016- 2017, 2017-2018, AND 2018-2019 WHEREAS, there are six (6) Executive Management Team employees who provide executive leadership, strategic direction, and department oversight for OCSD; and WHEREAS, Executive Management Team employees serve in at-will employment status, which may be terminated at any time by either the General Manager or an Executive Management Team employee, with or without cause, with no liability; and WHEREAS, it is OCSD's philosophy to compensate employee classifications competitively, which currently can be achieved through alignment with the salary market; and WHEREAS, salary adjustments for Executive Management Team employees have not kept pace with the market value for their position; and WHEREAS, the General Manager entered into discussions with the Executive Management Team employees, which resulted in agreed upon proposed changes to the salary structure, proposed changes to wages to include a merit pool, and minor benefit adjustments; and WHEREAS, the parties agreed that the salary changes would take effect the first pay period in July 2016 and the start of the new fiscal year in alignment with the other employee unit increases. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: That the Board of Directors hereby authorizes and approves the following changes to salaries and benefits for Executive Management Team employees, which shall become effective the first pay period of July 2016: • Changes to salary ranges for the Executive Management Team group to reduce compaction and bring into market alignment in fiscal year 2016 • 2.5% salary increases and corresponding range adjustments in fiscal years 2017 - 2018 and 2018 - 2019 to maintain market alignment A pay for performance compensation system with pay range steps 1201893.1 OCSD 16-27-1 • A $500 monthly car allowance • A base building performance increase up to 2.5% for Executive Management Team employees with exceptional performance and at the discretion of the General Manager • An increase in life insurance from two times salary to three times salary • A matching 457(b) contribution up to $200 a month for Executive Management Team employees who do not receive IS or are assigned to the classic open or PEPRA plans • The General Manager shall administer the Board approved Executive Management Team pay plan That the General Manager, or his designee, is authorized to implement the changes to salary ranges and structure, salaries, benefits, and performance increases approved herein. PASSED AND ADOPTED at a regular meeting of the Board of Directors held November 16, 2016. John Nielsen Board Chairman ATTEST: Kelly A. Lore Clerk of the Board 1201993.1 OCSD 16-27-2 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 16-27 was passed and adopted at a regular meeting of said Board on the 161h day of November 2016, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 161h day of November 2016. Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District 1201993.1 OCSD 16-27-3 Orange County Sanitation District Classification and Compensation Plan Rates Effective July 10, 2015 EXECUTIVE MANAGEMENT GROUP Classification Pay Grade Minimum I Midpoint [ ControlPointl Maximum Assistant General Manager EMT114 $ 163,748 $ 204,685 $ 221,061 $ 245,623 Director of Engineering EMT109 $ 148,862 $ 186,078 $ 200,964 $ 223,293 Director of Human Resources EMT109 $ 148,862 $ 186,078 $ 200,964 $ 223,293 Director of Finance and Administrative Services EMT109 $ 148,862 $ 186,078 $ 200,964 $ 223,293 Director of Environmental Services EMT108 $ 135,329 $ 169,161 $ 182,694 $ 202,994 Director of Facility Support Services EMT108 $ 135,329 $ 169,161 $ 182,694 $ 202,994 Director of Operations and Maintenance EMT108 $ 135,329 $ 169,161 $ 182,694 $ 202,994 1/19/16 Orange County Sanitation District Classification and Compensation Plan PROPOSED Rates Effective July 8, 2016 EXECUTIVE MANAGEMENT GROUP Classification Pay Grade Step 1 Step 2 j Step 3 1 Step 4 1 Step 5 Assistant General Manager EM32 $ 215,181 $ 226,185 1 $ 237,752 1 $ 249,911 1 $ 262,691 Director of Engineering I EM27 1 $ 190,1881 $ 199,914 1 $ 210,1381 $ 232,181 1 $ 232,181 Director of Operations and Maintenance EM26 $ 185,549 $ 195,039 $ 205,013 1 $ 215,4971 $ 226,518 Director of Human Resources EM25 $ 181,024 $ 190,281 $ 200,012 $ 210,241 1 $ 220,993 Director of Finance and Administrative Services EM25 $ 181,024 $ 190,281 $ 200,012 $ 210,241 1 $ 220,993 Director of Environmental Services EM25 $ 181,024 $ 190,281 $ 200,012 $ 210,241 1 $ 220,993 Orange County Sanitation District Classification and Compensation Plan PROPOSED Rates Effective July 7, 2017 EXECUTIVE MANAGEMENT GROUP Classification Pay Grade Step 1 Step 2 Step 3 1 Step 4 1 Step 5 Assistant General Manager EM32 $ 220,560 $ 231,840 $ 243,696 1 $ 256,158 1 $ 269,258 Director of Engineering EM27 $ 194,943 $ 204,912 $ 215,392 1 $ 226,4071 $ 237,985 Director of Operations and Maintenance EM26 $ 190,188 $ 199,914 $ 210,138 1 $ 220,8851 $ 232,181 Director of Human Resources EM25 $ 185,549 $ 195,039 $ 205,013 1 $ 215,4971 $ 226,518 Director of Finance and Administrative Services I EM25 $ 185,549 $ 195,039 $ 205,013 1 $ 215,4971 $ 226,518 Director of Environmental Services I EM25 $ 185,549 $ 195,039 $ 205,013 1 $ 215,4971 $ 226,518 Orange County Sanitation District Classification and Compensation Plan PROPOSED Rates Effective July 6, 2018 EXECUTIVE MANAGEMENT GROUP Classification Pay Grade Step 1 Step 2 Step 3 1 Step 4 1 Step 5 Assistant General Manager EM32 $ 226,074 $ 237,635 $ 249,788 1 $ 262,562 1 $ 275,990 Director of Engineering EM27 $ 199,817 $ 210,035 $ 220,776 1 $ 232,0671 $ 243,935 Director of Operations and Maintenance EM26 $ 194,943 $ 204,912 $ 215,392 1 $ 226,4071 $ 237,985 Director of Human Resources EM25 $ 190,188 $ 199,914 $ 210,138 1 $ 220,8851 $ 232,181 Director of Finance and Administrative Services I EM25 $ 190,188 $ 199,914 1 $ 210,1381 $ 220,8851 $ 232,181 Director of Environmental Services I EM25 $ 190,1881 $ 199,914 1 $ 210,1381 $ 220,8851 $ 232,181 RESOLUTION NO. OCSD 16-28 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUTY SANITATION DISTRICT APPROVING CHANGES TO THE SALARY SCHEDULE, SALARY INCREASES, PERFORMANCE-BASED INCREASES, AND THE DISTRIBUTION OF ANY REMAINING FUNDS BASED ON CHANGES TO SCOPE, DUTIES, OR RESPONSIBILITIES FOR UNREPRESENTED MANAGEMENT EMPLOYEES FOR FISCAL YEARS 2016-2017, 2017-2018, AND 2018-2019 WHEREAS, there are fifteen (15) employees in the management employees job classification at the Orange County Sanitation District ("OCSD") who serve as organizational leaders and oversee staff within particular divisions and/or workgroups to align performance outcomes with the strategic goals of the agency; and WHEREAS, management employees are unrepresented and meet directly with the General Manager about terms and conditions of employment; and WHEREAS, salary adjustments for management employees have not kept pace with employees they oversee, the market value for their position, or the consumer Price Index; and WHEREAS, management employees' salaries have forgone salary increases since 2009 in all years except a 2% increase in 2011, a 3% increase in 2014, and a 2% increase in 2015; and WHEREAS, the General Manager entered into discussions with the management employees, which resulted in agreed upon proposed changes to the salary structure, proposed changes to wages to include a merit pool, and minor benefit adjustments; and WHEREAS, the parties agreed that the salary changes would take effect the first pay period in July 2016 and the start of the new fiscal year in alignment with the other employee unit increases. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: That the Board of Directors hereby authorizes and approves the following changes to salaries and benefits for management employees, which shall become effective the first pay period of July 2016: • Changes to salary ranges for the Manager Group to reduce compaction and bring into market alignment in fiscal year 2016 • Salary increases of 2.5% and range adjustments for Fiscal Year 2017 - 2018, and 2.5% salary increases and corresponding range increases for Fiscal Year 2018 - 2019 OCSD 16-28-1 • A pay for performance compensation system with pay range steps • An increase in development pay to align with other employee groups • A base building performance increase up to 2.5% for managers with exceptional performance and at the discretion of the General Manager • An increase in life insurance from two times salary to three times salary • A matching 457(b) contribution up to $200 a month for managers who do not receive IIS or are assigned to the classic open or PEPRA plans • The General Manager shall administer the Board approved manager pay plan That the General Manager, or his designee, is authorized to implement the changes to salary ranges and structure, salaries, benefits, and performance increases approved herein. PASSED AND ADOPTED at a regular meeting of the Board of Directors held November 16, 2016. John Nielsen Board Chairman ATTEST: Kelly A. Lore Clerk of the Board OCSD 16-28-2 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 16-28 was passed and adopted at a regular meeting of said Board on the 16'^ day of November 2016, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 161h day of November 2016. Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District OCSD 16-28-3 Orange County Sanitation District Classification and Compensation Plan Rates Effective July 10, 2015 MANAGERS GROUP Classification IPayGradel Minimum I Midpoint Maximum Controller I MGR96 1 $ 112,152 $ 140,190 $ 168,228 Engineering Manager I MGR96 1 $ 112,152 $ 140,190 $ 168,228 IT Systems&Operations Manager MGR96 1 $ 112,152 $ 140,190 $ 168,228 Environmental Compl & Reg Affairs Manager MGR95 1 $ 109,482 $ 136,852 $ 164,223 Contracts&Purchasing Manager MGR94 $ 106,811 $ 133,514 $ 160,217 Environmental Lab&Ocean Monitoring Manager MGR94 $ 106,811 $ 133,514 $ 160,2 77 Human Resources& Risk Manager MGR94 $ 106,811 $ 133,514 $ 160,217 Maintenance Manager I MGR94 1 $ 106,811 $ 133,514 $ 160,2 77 Operations Manager I MGR94 1 $ 106,811 $ 133,514 $ 160,217 Information Technology Manager I MGR 92 1 $ 101,725 $ 127,127 $ 152,588 1 7/10/15 Orange County Sanitation District Classification and Compensation Plan PROPOSED Rates Effective July 8, 2016 MANAGERS GROUP Classification I Pay Gradel Step 1 1 Step 2 1 Step 3 1 Step 4 1 Step 5 Engineering Manager EM17 $ 148,575 $ 156,173 $ 164,160 $ 172,555 $ 181,379 Controller I EM16 I S 144,951 1 $ 152,364 1 $ 160,156 1 $ 168,346 1 $ 176,955 Human Resources&Risk Manager I EM16 I S 144,951 $ 152,364 $ 160,156 $ 168,346 $ 176,955 Maintenance Manager I EM16 I S 144,951 $ 152,364 $ 160,156 $ 168,346 $ 176,955 Operations Manager I EM16 I S 144,951 $ 152,364 $ 160,156 $ 168,346 $ 176,955 Contracts & Purchasing Manager I EM15 I S 141,416 $ 148,648 $ 156,249 $ 164,240 $ 172,639 731 IT Systems&Operations Manager EM15 S 141,416 $ 148,648 $ 156,249 $ 164,240 $ 172,639 Environmental Lab&Ocean Monitoring Manager EM15 S 141,416 $ 148,648 $ 156,249 $ 164,240 $ 172,639 Information Technology Manager EM11 S 128,116 $ 134,667 $ 141,554 $ 148,793 $ 156,403 Orange County Sanitation District Classification and Compensation Plan PROPOSED Rates Effective July 7, 2017 MANAGERS GROUP Classification I Pay Gradel Step 1 1 Step 2 1 Step 3 1 Step 4 1 Step 5 Engineering Manager EM18 I S 156,096 $ 164,079 $ 172,470 1 $ 181,290 $ 190,562 Controller I EM16 I S 148,5751 $ 156,173 1 $ 164,160 1 $ 172,5551 $ 181,379 Human Resources&Risk Manager I EM16 I S 148,5751 $ 156,173 1 $ 164,160 1 $ 172,5551 $ 181,379 Maintenance Manager I EM16 I S 148,575 $ 156,173 $ 164,160 $ 172,555 $ 181,379 Operations Manager I EM16 I S 148,575 $ 156,173 $ 164,160 $ 172,555 $ 181,379 771 Contracts & Purchasing Manager I EM16 I S 148,575 $ 156,173 $ 164,160 $ 172,555 $ 181,379 IT Systems&Operations Manager I EM16 I S 148,5751 $ 156,173 1 $ 164,160 1 $ 172,555 1 $ 181,379 Environmental Lab&Ocean Monitoring Manager EM16 S 148,575 $ 156,173 $ 164,160 $ 172,555 $ 181,379 Information Technology Manager EM12 S 134,601 $ 141,485 $ 148,720 $ 156,326 $ 164,321 Orange County Sanitation District Classification and Compensation Plan PROPOSED Rates Effective July 6, 2018 MANAGERS GROUP Classification I Pay Gradel Step 1 1 Step 2 1 Step 3 1 Step 4 1 Step 5 Engineering Manager EM18 $ 159,999 $ 168,181 $ 176,782 1 $ 185,823 $ 195,326 Controller I EM16 I S 152,2891 $ 160,077 1 $ 168,264 1 $ 176,869 1 $ 185,91 Human Resources&Risk Manager I EM16 I S 152,2891 $ 160,077 1 $ 168,264 1 $ 176,869 1 $ 185,914 Maintenance Manager I EM16 I S 152,289 $ 160,077 $ 168,264 $ 176,869 $ 185,914 Operations Manager I EM16 I S 152,289 $ 160,077 $ 168,264 $ 176,869 $ 185,914 Contracts & Purchasing Manager I EM16 I S 152,289 $ 160,077 $ 168,264 $ 176,869 $ 185,914 IT Systems&Operations Manager EM16 S 152,289 $ 160,077 $ 168,264 $ 176,869 $ 185,914 Environmental Lab&Ocean Monitoring Manager EM16 S 152,289 $ 160,077 $ 168,264 $ 176,869 $ 185,914 Information Technology Manager EM12 S 137,966 $ 145,022 $ 152,438 $ 160,234 $ 168,429 STEERING COMMITTEE Meeting Dare TOBd.ofDir. 11/16/16 11/16/16 AGENDA REPORT IternNumber IemNumber s Orange County Sanitation District FROM: John Nielsen, Board Chairman SUBJECT: GENERAL MANAGER COMPENSATION AND BENEFITS BOARD CHAIR'S RECOMMENDATION Adopt Resolution No. OCSD 16-29 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving salary increase, salary range adjustment, and changes to the benefits for the General Manager for Fiscal Years 2016 to 2017 and 2017 to 2018," authorizing the Board Chair to implement a base building salary increase of 8% and a salary range adjustment commencing in the first pay period of July 2016 for fiscal year 2016 to 2017 and a base building salary increase of 8% and a salary range adjustment in the first pay period of July 2017 for fiscal year 2017 to 2018 for a total salary cost of $39,429 and an added benefits cost of $24,000 for both fiscal years. Compensation and benefits costs including impact to existing benefits of an amount not to exceed $76,448. BACKGROUND The General Manager is employed on an At-Will basis and serves at the pleasure of the Board of Directors. According to Section 6 of the General Manager's At-Will Agreement the, "District's Steering Committee shall meet with the General Manager in August of each year during the term of this Agreement to review and evaluate his performance over the prior year. The Steering Committee shall make its recommendation(s) to the Board concerning adjustment to the compensation and/or benefits paid or provided to the General Manager, to be effective in July of the year of the review." Since the General Manager was appointed to this position in April 2013, the Board has approved a base building salary increase of 3% and a corresponding salary range adjustment in Fiscal Year 2014-2015 and a base building salary increase and corresponding salary range adjustment of 7% in Fiscal Year 2015-2016. The Orange County Sanitation District (Sanitation District) reviews employee market position as compared to incumbents in like positions with comparison agencies to ensure salaries are competitive. The General Manager's market position based on salary in Fiscal Year 2015-2016 was the 9th percentile as compared to peers in our comparison agencies. The General Manager's market position was to be revisited through a Districtwide classification and compensation study to provide the Board with data for consideration of an organization-wide structural alignment of its pay systems. The compensation study has been completed and in Fiscal Year 2016-2017 the General Manager's market position is at the 7th percentile as compared to peers in comparison agencies. Page 1 of 4 Additionally, there is significant overlapping of salary ranges between the General Manager and the highest paid subordinate range creating compaction and impacting succession planning efforts. RELEVANT STANDARDS • Competitive compensation and benefits • Highly qualified, well trained, motivated, and diverse workforce PROBLEM The General Manager's salary market position of the 71" percentile could put the Sanitation District at risk for retention of executive staff and may not be competitive as compared to peers in like positions. A possible result is highly qualified and experienced staff could be recruited by other agencies inhibiting the Sanitation District's ability to promote from within, impacting succession planning goals, and obstructing attraction and recruitment efforts. Additionally, overlapping ranges of executive management with the General Manager has created compaction and impacts salary structure alignment, which disrupts succession planning. PROPOSED SOLUTION Adopt Resolution No. OCSD 16-29 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving salary increase, salary range adjustment, and changes to the benefits for the General Manager for Fiscal Years 2016 to 2017 and 2017 to 2018." The Sanitation District is committed to maintaining a competitive compensation market position that attracts and retains top employment talent. It is the Sanitation District's philosophy to compensate employees competitively and equitably, and understanding the relative market position assists with that determination. The proposed structural range adjustment and base building salary increase is projected to move the General Manager's market position from the 711 percentile to the 201h percentile in salary and the W percentile for total compensation in 2016. For 2017 the projection is the 33'd salary percentile and the 671" total compensation percentile, which will work toward organizational salary alignment, reduce compaction, and provide a more competitive salary market position. TIMING CONCERNS N/A RAMIFICATIONS OF NOT TAKING ACTION Potential retention issue of highly skilled and experienced executive staff. Page 2 of 4 PRIOR COMMITTEE/BOARD ACTIONS October 2016 - Board authorized the Chair and Vice Chair to initiate discussions with the General Manager regarding his compensation and benefits package in closed session and authorized a salary increase of 8% in fiscal year 2016-2017 and 8% in fiscal year 2017-2018. June 2016 - Steering Committee conducted the annual performance evaluation of the General Manager in closed session. October 2015 - Board approved Resolution No. OCSD 15-23, approving a base building salary increase for the General Manager of 7%, along with corresponding salary range adjustment and changes to the benefits package to more closely align with those offered to the represented and unrepresented groups. August 2015 - Board authorized the Chair to initiate discussions with the General Manager regarding his compensation and benefits package in closed session. June 2015 - The Steering Committee conducted the annual performance evaluation of the General Manager in closed session. November 2014 - Board approved Resolution No. OCSD 14-15, approving a base building salary increase for the General Manager of 3% of salary and to adjust the corresponding salary range for FY 2014-2015, effective July 11, 2014. June 2014 - Steering Committee conducted the annual performance evaluation of the General Manager in closed session. February 2013 - Board approved appointment of James D. Herberg to the positon of General Manager and approved the current compensation and benefits package, effective April 1, 2013. ADDITIONAL INFORMATION Among the agency's accomplishments during the past year were: • Transferring local sewers in Service Area 7 • Reaffirming our AAA credit ratings • Increasing flows to GWRS by 30% • Completing the feasibility study for final expansion of the Groundwater Replenishment System • Maintaining 100% compliance with our Ocean Discharge Permit • Taking steps to eliminate our unfunded pension liability • Decreasing the annual operating budget Page 3 of 4 CEQA N/A FINANCIAL CONSIDERATIONS Costs of salary increases over fiscal years 2016-2017 and 2017-2018 is $39,429. Cost of benefits is $24,000. Compensation and benefits costs, including impact to existing benefits, not to exceed $76,448. ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.corn with the complete agenda package: • Resolution No. OCSD 16-29 • General Manager's Current Salary Schedule • General Manager's Proposed Salary Schedule • General Manager's At-Will Agreement Page 4 of 4 RESOLUTION NO. OCSD 16-29 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING SALARY INCREASE, SALARY RANGE ADJUSTMENT, AND CHANGES TO BENEFITS FOR THE GENERAL MANAGER FOR FISCAL YEARS 2016 TO 2017 AND 2017 TO 2018 WHEREAS, the General Manager provides organizational leadership, strategic direction, and District oversight for Orange County Sanitation District (OCSD); and WHEREAS, the General Manager serves an at-will employment status, which may be terminated at any time by the Board with or without cause with no liability; and WHEREAS, it is OCSD's philosophy to compensate employee classifications competitively, which currently can be achieved through alignment with the salary market; and WHEREAS, the July 1, 2015, At-Will Agreement with the General Manager provides that, "District's Steering Committee shall meet with General Manager in August of each year during the term of this Agreement to review and evaluate his performance over the prior year. The Steering Committee shall make its recommendation(s) to the Board concerning adjustment to the compensation and/or benefits paid or provided to General Manager, to be effective in July of the year of review. After consideration of the recommendation(s) of the Steering Committee, the Board shall determine and approve the compensation, including benefits, payable to General Manager, which generally becomes effective July of the fiscal year of the review"; and WHEREAS, the Steering Committee commenced its review of the General Manager's performance in June 2016, finalized its review and made its recommendation to the Board on October 26, 2016. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: 1. That the Board of Directors hereby authorizes and approves the following changes to General Manager's salary and benefits, which shall become effective retroactively to the first pay period of July 2016: a. At-Will Agreement with the General Manager commencing on July 1, 2016. b. A base building salary increase for the General Manager of eight percent (8%) in the first pay period of July 2016 and eight percent (8%) in the first pay period of July 2017 and a salary range adjustment to the corresponding salary range. 1201993.1 OCSD 16-29-1 c. A benefits package that would include those benefits offered to represented and unrepresented employees, including medical, dental, vision, disability insurance and paid leave. The General Manager's benefits package also will include additional life insurance coverage from two (2) times salary to three (3) times salary, $8,400 automobile allowance, six (6%) investment incentive salary (IIS) plus a flat payment of $1,250, an increase in employer-paid 457(b) deferred compensation contribution from $5000 to $11,000, an additional $6000 employer paid medical expense payment, and leave accruals at 250 hours per year. 2. That the Board Chair, or his designee, is authorized to implement the changes to salary range and salary and benefit items approved herein. PASSED AND ADOPTED at a regular meeting of the Board of Directors held November 16, 2016. John Nielsen Board Chair ATTEST: Kelly A. Lore Clerk of the Board 1201993.1 OCSD 16-29-2 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 16-29 was passed and adopted at a regular meeting of said Board on the 16th day of November 2016, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 16th day of November 2016. Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District 1201993.1 OCSD 16-29-3 Orange County Sanitation District Classification and Compensation Plan Rates Effective July 1,2015 GENERAL MANAGER Classification Pay Grade Minimum Midpoint Control Point Maximum General Manager EMT120 $ 188,952 $ 236,191 $ 255,087 $ 283,429 Proposed Salary Range for General Manager July 2016 Salary Range Annuall Ste 1 Ste 2 Ste 3 Step 4 SteP 5 EM37 Annual 243,457 255,907 268,995 282,751 297,211 Monthly 20,288 21,326 22,416 23,563 24,768 Hourly117.05 123.03 129.32 135.94 142.89 July 2017 Salary Range Annuall Ste 1 Ste 2 Ste 3 Step 4 Ste 5 EM37 Annual 249,543 262,305 275,719 289,820 304,641 Monthly 20,795 21,859 22,977 24,152 25,387 Hourly119.97 126.11 132.56 139.34 146.46 a n= AT-WILL EMPLOYMENT AGREEMENT James D. Herberg General Manager ORANGE COUNTY SANITATION DISTRICT THIS AT-WILL EMPLOYMENT AGREEMENT ("Agreement") is made and entered into, to be effective the 19 day of July. 2016, by and between: ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "District"; AND JAMES D. HERBERG, sometimes hereinafter referred to as "General Manager". RECITALS WHEREAS, District desires to employ James D. Herberg ("Mr. Herberg"), as General Manager of District,pursuant to the terms and conditions as set forth in this Agreement;and WHEREAS, Mr. Herberg, by virtue of his education, training and experience, is fully qualified to fill the position of General Manager and desires to continue to serve the District as its General Manager, pursuant to the terms and conditions of this Agreement; and WHEREAS, per Resolution No. OCSD 16-29 adopted on November 16, 2016 the District's Board of Directors has approved and authorized the Board Chair to execute this "At-Will Employment Agreement"with Mr. Herberg for General Manager services to include a base building salary increase of 8%of salary in each of fiscal years 2016 and 2017 . WHEREAS,at the beginning of negotiations the parties agreed that the salary changes would take effect retroactively to the first pay period of July 2016 which is the first pay period I20I895.1 in the current fiscal year. NOW,THEREFORE, the Parties hereto agree as follows: Section 7: District hereby employs Mr. Herberg to serve as General Manager of the Orange County Sanitation District, commencing on the effective date hereof, and continuing until termination by either Party, as provided in this Agreement. In that capacity, Mr. Herberg agrees to perform the functions and duties of General Manager, the administrative head of the District, as prescribed by the laws of the State of California, and by the rules, regulations, decisions, and directions of the Board of Directors of the District (hereinafter referred to as "Board"). The General Manager's duties may involve expenditures of time in excess of the regularly established workday or in excess of a forty hour work week and may also include time outside normal office hours (including attendance at Board and Committee meetings). General Manager is classified as an exempt employee under the Fair Labor Standards Act ("FLSA") and shall not be entitled to any additional compensation for hours worked in excess of forty in a work week. Section 2: Mr. Herberg shall be employed in an "at-will" capacity serving at the sole pleasure of the Board. Either party to this Agreement may terminate the Agreement at any time for any reason with or without cause, and without hearing, upon 30 days' notice to the other party. Mr. Herberg is advised and acknowledges that he has none of the termination rights of a Regular employee of the District. Except as expressly provided herein, and as a condition of employment, Mr. Herberg knowingly, willingly and voluntarily gives up, waives, and disclaims any and all rights he may have, express or implied,to any notice and/or hearing before or after termination,and/or to any continued employment with the District after termination. As an "at-will" employee, Mr. Herberg understands that he may be subject to termination with or without cause at the sole discretion of the Board, notwithstanding that the other provisions of the District's Personnel Policies and Procedures Manual (hereinafter referred to as "Manual") apply to Mr.Herberg. f the District terminates employment without cause,Mr. Herberg shall be given a thirty(30)day Notice of Termination and severance pay in an amount equal to six (6) months of his then current annual base salary upon Mr. Herberg's execution of a valid written release of legal claims. f the District terminates this Agreement (thereby terminating Mr. Herberg's employment) without cause, and Mr. Herberg executes a valid written release of legal claims, the severance pay is considered a cash settlement related to the termination of Mr. Herberg and waiver of legal UW875.1 claims and shall be fully reimbursed to the District by Mr. Herberg if Mr. Herberg is convicted of a crime involving an abuse of his office or position. Abuse of office or position shall have the meaning set forth in Government Code 53243.4, as may be amended, of either (1) an abuse of public authority, including, but not limited to, waste, fraud and violation of the law under color of authority or (2) a crime against public justice, including, but, not limited to, a crime described in Title 7 (commencing with Section 92 of Part 1 of the Penal Code). Mr. Herberg shall reimburse such severance pay to the District no later than six (6) months after such conviction. If Mr. Herberg terminates his employment with 30 days' notice,the Board shall have the right to accept his resignation effective the date notice is given. Such decision to accept his resignation earlier shall not be considered a termination without cause and shall not entitle Mr. Herberg to receive the severance pay noted above. Section 3: The term of this Agreement shall commence on the effective date above and continue for an indefinite duration, until terminated by either Party pursuant to Section 2 above, or unless terminated or amended as provided herein. Section 4: As compensation for the services to be performed hereunder, upon the effective date, District agrees to pay General Manager an annual base salary for services rendered of two hundred fifty five, nine hundred seven dollars ($255,907) in fiscal year 2016 and two hundred seventy six,three hundred seventy nine dollar($276,379)in fiscal year 2017, subject to all applicable deductions and withholdings of any and all sums required by then current state, federal or local law, along with deductions of applicable sums the General Manager is obligated to pay because of participation in plans and programs descrbed in this Agreement, and paid biweekly in accordance with the District's established accounting and payroll practices atthe same time and in the same manner as other employees of the District. No increase in salary may exceed the compensation permitted by the applicable salary range for the classification established by duly adopted Resolution of the Board. Section 5: Forthe period of this Agreement, District shall provide Mr. Herberg with a fixed benefit package that includes the following: Personal Leave — accrued based on years of service for all paid hours, including hours actually worked and hours in a paid-leave payroll status, on a biweekly basis in accordance with the Manual. Personal leave accruals shall not exceed four hundred forty (440) hours as of December 31 of each year. Any hours in excess of said limit, will be paid to Mr. Herberg in January in an amount equal to 1201875.1 the hourly rate of compensation. Administrative Leave -40 hours per fiscal year, granted and not eligible for annual cash out. Investment Incentive Salary (IIS)- 6% of base salary applied on a biweekly fiscal year basis, and a flat amount of one thousand two hundred fifty dollars ($1,250) annually. Deferred Compensation - OCSD-paid annual allocation for 2016 and 2017 of $1 1,000 allocated on a biweekly calendar year basis. Car Allowance—OCSD-paid annual allocation of$8,400. Added Medical Allowance—OCSD-paid annual allocation for 2016 and 2017 of six thousand dollars ($6,000). Mr. Herberg's benefit package shall also include benefits consistent with the Manual for: holiday pay; medical, dental, vision and life insurance at three time's base salary; long-tern and short-term disability insurance; and employee assistance program. Additionally, Mr. Herberg's benefit package shall include executive disability insurance benefits, consistent with those provided to OCSD managers. These benefits shall remain in full force and effect unless and until replaced by an amendment to this Agreement, signed by Mr. Herberg and approved by the Board, which amendment shall includethe effective date thereof. Section 6: District's Steering Committee shall meet with General Manager in August of each year during the term of this Agreement to review and evaluate his performance over the prior year.The Steering Committee shall make its recommendation(s) to the Board concerning adjustment to the compensation and/or benefits paid or provided to General Manager, to be effective in July of the year of review. After consideration of the recommendation(s) of the Steering Committee, the Board shall determine and approve the compensation, including benefits, payable to General Manager, which generally becomes effective July of the fiscal year of the review. Failure of the District to review and evaluate the performance of the General Manager pursuant to this section shall not affect the right of the District to terminate the General Manager's employment and shall not be considered a breach of this Agreement. Section 7: Mr. Herberg shall be a Participant Member in the Orange County Employees Retirement System ("OCERS"). District shall pay the required employer's contribution and 0% of Mr. Herberg's required contribution towards membership in OCERS. 1201875.1 Section a: District shall reimburse General Manager for all expenses paid by him and incurred for non-personal,job-related District business that are reasonably necessary to the General Managers service to the District. The District agrees to either pay such expenses in advance or to reimburse the expenses, so long as the expenses are incurred and submitted according to the criteria established by District's budget and/or normal expense reimbursement procedures pursuant to applicable policy Resolutions. To be eligible for reimbursement, all expenses must be supported by documentation meeting the District's policies and requirements and must be submitted within time limits established by the District. Such reimbursement shall not be considered a benefit. Section g: During the period of this Agreement, it is agreed that General Manager shall devote his fulltime, skills, labor and attention to said employment. At no time may General Manager undertake outside activities consisting of consultant work, speaking engagements, writing, lecturing, or other similar professional activities for money or other consideration without prior approval of District's Steering Committee. However, the expenditure of reasonable amount of time for educational, charitable, or professional activities shall not be deemed a breach of this Agreement if those activities do not conflict or materially interfere with the services required under this Agreement, and shall not require the prior written consent of the Steering Committee. This Agreement shall not be interpreted to prohibit General Manager from making passive personal Investments or conducting private business affairs, provided those activities are not deemed to be a conflict of interest by state law nor do they conflict or materially interfere with the services required under this Agreement. Section 10, The Board has the sole discretion to determine whether the District shall pay General Manager pending an investigation into any alleged misconduct by General Manager. In the event that the District's Board determines, in its sole discretion, that it is in the best interest of the District for General Manager to be placed on paid administrative leave pending such an investigation, General Manager shall fully reimburse any salary provided for that purpose if the misconduct for which the General Manager was under investigation results in the General Manager being convicted of a crime involving an abuse of his office or position as defined in Section 2 of this Agreement. General Manager shall reimburse such salary to the District no later than six months after such conviction. Section 11, In the event that the District provides funds for the legal criminal defense of UW875.r General Manager, General Manager shall fully reimburse said funds to the District if the General Manager is convicted of a crime involving an abuse of his/her office or position as defined in Section 2 of this Agreement. General Manager shall reimburse such criminal legal defense fees to the District no later than six months after such conviction. Section 12, The terms and conditions of employment for General Manager, including other employment benefits for the General Manager that are not specifically provided for in this Agreement, shall be governed by the Manual, to the extent that amendments to the Manual made after the effective date of this Agreement are not inconsistent with the provisions of this Agreement. In the event of any such inconsistency or conflict, the provisions of this Agreement shall govern. Section 13, This Agreement supersedes any and all other prior agreements, either oral or in writing, and specifically, but not limited to, Mr. Herberg's At-Will Employment Agreement for Assistant General Manager dated July 1, 2015, between the Parties hereto with respect to the employment of Mr. Herberg by District, and contains all of the covenants and agreements between the Parties with respect to that employment in any manner whatsoever. Each Party to this Agreement acknowledges that no representation, inducement, promise, or agreement, orally or otherwise, has been made by any Party, or anyone acting on behalf of any Party,which is not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement or Employment shall be valid or binding on ether Party. Section 14: Any notices to be given hereunder by either Party to the other shall be in writing and may be transmitted by personal delivery, or by mail, registered or certified, postage prepaid, with return receipt requested. Mailed notices shall be addressed to the Parties at the addresses maintained in the personnel records of District, but each Party may change that address by written notice in accordance with this Section. Notices delivered personally shall be deemed communicated as of the date of actual receipt; mailed notices shall be deemed communicated as of the date of mailing. Section 15, Any modifications of this Agreement will be effective only if set forth in writing and signed by the Parties. Section 16, The failure of either Party to insist on strict compliance with any of the terms,covenants, or conditions of this Agreement by the other Party, shall not be deemed a waiver of that term, covenant,or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for UW875.1 all or any other times. Section 17, If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way. Section 18, This Agreement shall be governed by and construed in accordance with the laws of the State of California and all applicable ordinances, policies and resolutions. Section 191 General Manager acknowledges that he has had the opportunity and has conducted an independent review of the financial and legal effects of this Agreement. General Manager acknowledges that he has made an independent judgment upon the financial and legal effects of the Agreement and has not relied upon representation of the District, its elected or appointed officers and officials, agents or employees other than those expressly set forth in this Agreement. General Manager acknowledges that he has been advised to obtain, and has availed himself of, legal advice with respect to the terms and provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this At-Will Employment Agreement on the day and year first above written. "DISTRICT" ORANGE COUNTY SANITATION DISTRICT "GENERAL MANAGER" By: James D. Herberg Date APPROVED AS TO FORM: "CHAIR, BOARD OF DIRECTORS" BRADLEY R. HOGIN GENERAL COUNSEL By: Bradley R. Hogin John Nielsen Date 1201875.1 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CIP Capital Improvement Program CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) ICS Incident Command System IERP Integrated Emergency Control Plan LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District COBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration PCSA Professional Consultant Services Agreement POTW Publicly Owned Treatment Works ppm Parts per million PSA Professional Services Agreement RFP Request For Proposal Glossary of Terms and Abbreviations RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SRF State Revolving Fund SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation WIFIA Water Infrastructure Financing and Innovation 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. Blogas — 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 farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria —A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coil are the most common bacteria in wastewater. Glossary of Terms and Abbreviations Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation (COP) — A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (D/T) — the dilution at which the majority of the people detect the odor becomes the D/T for that air sample. Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service(LOS)—Goals to support environmental and public expectations for performance. NDMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works(POTW)— Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million gallons per day of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge— Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater. Glossary of Terms and Abbreviations Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed —A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.