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 Any items withdrawn from the Consent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.