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HomeMy WebLinkAbout11-28-2018 Steering Committee Agenda Packet.pdf11/28/2018 Steering Committee Agenda Page 1 of 3 AGENDA 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 Chairperson and are requested to limit comments to three minutes. REPORTS: The Committee Chairperson 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 Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1.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 October 24, 2018. NON-CONSENT ITEMS 2. NEW POLICY REGARDING THE DISPOSITION OF EXTERNAL SIGNAGE ON ORANGE COUNTY SANITATION DISTRICT PROPERTY (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 18-XX entitled: “A Resolution of The Board of Directors of Orange County Sanitation District Adopting The “Sign Removal Policy”. Orange County Sanitation District Regular Meeting of the STEERING COMMITTEE Wednesday, November 28, 2018 5:00 P.M. Administration Building Conference Rooms A & B 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 11/28/2018 Steering Committee Agenda Page 2 of 3 3. REVISED POLICY REGARDING BOARD OF DIRECTORS’ EXPENSE REIMBURSEMENT, MEETING ATTENDANCE AND COMPENSATION (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 18-XX entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District Adopting a Revised Policy Regarding Board of Directors’ Expense Reimbursement, Meeting Attendance and Compensation; and Repealing Resolution No. OCSD 15-06.” 4. LABOR RELATIONS – CONTRACT NEGOTIATIONS (Celia Chandler) RECOMMENDATION: Recommend to the Board of Directors to: Authorize/Direct the Steering Committee to form an Ad Hoc Committee for the purpose of interviewing and selecting an external Chief Negotiator for the upcoming contract negotiations with all six (6) bargaining units at the Orange County Sanitation District. 5. POSITION CHANGE FOR FY 2018-19 AND 2019-20 (Celia Chandler) RECOMMENDATION: Recommend to the Board of Directors to: Approve an upgrade of the vacant Director of Finance & Administrative Services (Salary Grade EM25) position to Director of Engineering (Salary Grade EM27). 6. STRATEGIC PLAN UPDATE (Rob Thompson) RECOMMENDATION: Recommend to the Board of Directors to: A. Approve the Strategic Plan 2018-2019 Update; and B. Direct staff to implement the goals and levels of service contained in the Plan. 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 or potential 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 LEGAL COUNSEL RE ANTICIPATED LITIGATION (Government Code Section 54956.9(d)(2)) Significant exposure to litigation: Claim of Richard Spencer 11/28/2018 Steering Committee Agenda Page 3 of 3 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 19, 2018 at 5:00 p.m. 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) 593-9433 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, MMC Clerk of the Board (714) 593-7433 klore@ocsd.com For any questions on the agenda, Committee members may contact staff at: General Manager Jim Herberg (714) 593-7300 jherberg@ocsd.com Assistant General Manager Lorenzo Tyner (714) 593-7550 ltyner@ocsd.com Assistant General Manager Rob Thompson (714) 593-7310 rthompson@ocsd.com Director of Environmental Services Jim Colston (714) 593-7450 jcolston@ocsd.com Director of Human Resources Celia Chandler (714) 593-7202 cchandler@ocsd.com Director of Operations & Maintenance Ed Torres (714) 593-7080 etorres@ocsd.com 10/24/2018 Steering Committee Minutes Page 1 of 3 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, October 24, 2018 at 5:00 p.m. A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Board Chairman Greg Sebourn on Wednesday, October 24, 2018 at 5:01 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: Greg Sebourn, Board Chair David Shawver, Board Vice-Chair Peter Kim, LaPA Committee Chair Chad Wanke, Administration Committee Chair John Withers, Operations Committee Chair Ellery Deaton, Member-At-Large COMMITTEE MEMBERS ABSENT: Donald Wagner, Member-At-Large STAFF PRESENT: Jim Herberg, General Manager Rob Thompson, Assistant General Manager Lorenzo Tyner, Assistant General Manager Celia Chandler, Director of Human Resources Jim Colston, Director of Environmental Services Kelly Lore, Clerk of the Board Jennifer Cabral Megan Carlson Mike Dorman Al Garcia Lori Karaguezian Mark Manzo Gerry Matthews Kathy Millea Adam Nazaroff Ddaze Phuong OTHERS PRESENT: Brad Hogin, General Counsel Al Krippner, Alternate Director MCSD PUBLIC COMMENTS: No public comments were provided. REPORTS: Chair Sebourn did not provide a report. ITEM NO. 1 10/24/2018 Steering Committee Minutes Page 2 of 3 General Manager Herberg announced that an anonymous letter, addressed to the Board of Directors regarding OCSD’s rebate program, was distributed by the Clerk of the Board as late communication. He stated that he also provided a response letter with information and background regarding the governing ordinances, explained how customers can apply for rebates, and how third party companies also offer to submit rebate claims on behalf of the property owners. Mr. Herberg stated that OCSD is not affiliated in any way with the third-party companies. After a brief discussion, the Committee agreed that a notification should be mailed to the commercial businesses to remind them of the options available to apply for a rebate; and reach out to other business networks such as: OC Business Council, Association of Realtors, and the Apartment Owners Association to provide this information. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) Clerk of the Board Kelly Lore stated a correction to the minutes. MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Steering Committee held on September 26, 2018 as corrected. AYES: Deaton, Kim, Sebourn, Wanke and Withers NOES: None ABSTENTIONS: None ABSENT: Shawver and Wagner Vice-Chair Shawver arrived at the meeting at 5:12 p.m. INFORMATION ITEMS: 2. STRATEGIC PLAN UPDATE (Rob Thompson) Assistant General Manager Rob Thompson presented the Strategic Plan Update focusing on the completed strategic goals in the previous five-year plan. With the bulk of the prior plan completed, he stated that staff is proposing a new process which will follow a two-year development cycle in support of the two-year budgeting process. Mr. Thompson presented the proposed goals and initiatives for the 2018 Strategic Plan Update to include: Environmental Stewardship, Organizational Effectiveness, Operational Optimization, and Sustainabity. He then responded to questions regarding the two-year process, effect on bond rating, and interface with the General Manager’s workplan. 10/24/2018 Steering Committee Minutes Page 3 of 3 Mr. Thompson will present the final Strategic Plan Update to the Board of Directors for approval in November. CLOSED SESSION CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(d)(2): The Board convened in closed session at 5:24 p.m. to discuss one item. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Section and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 5:29 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin did not provide a report. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Chair Sebourn declared the meeting adjourned at 5:30 p.m. to the next Steering Committee meeting to be held on Wednesday, November 28, 2018 at 5:00 p.m. Submitted by: __________________ Kelly A. Lore, MMC Clerk of the Board Page 1 of 3 STEERING COMMITTEE Meeting Date 11/28/18 To Bd. of Dir. 11/28/18 AGENDA REPORT Item Number 2 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: NEW POLICY REGARDING THE DISPOSITION OF EXTERNAL SIGNAGE ON ORANGE COUNTY SANITATION DISTRICT PROPERTY GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 18-XX entitled: “A Resolution of the Board of Directors of Orange County Sanitation District Adopting the ‘Sign Removal Policy’”. BACKGROUND The Orange County Sanitation District (Sanitation District) owns, operates, and maintains real property and easements with various sewer facilities throughout its jurisdiction. Recently, Sanitation District staff has noted an increasing number of signs, banners, and/or advertisements posted by individuals, community groups, or other third parties on Sanitation District property. This sign removal policy will prevent litter and blight and preserve the health and safety of Sanitation District employees by allowing staff to remove all such signs. It will be the policy of the Sanitation District to remove, without notice, all signs, banners, advertisements, and/or any object containing or bearing writing that is affixed, posted, or fastened to Sanitation District property by third parties. RELEVANT STANDARDS • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities PROBLEM There is an increasing number of signs, banners, and/or advertisements posted by individuals, community groups, or other third parties on Sanitation District property causing litter and blight. PROPOSED SOLUTION Provide policy direction for the Board of Directors and staff to administer the disposition of signage not approved by the Sanitation District Page 2 of 3 TIMING CONCERNS N/A RAMIFICATIONS OF NOT TAKING ACTION Not taking this action will result in the continued use of Sanitation District property for external signage without approval of the Sanitation District. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Procedures A) Sign Removal Sanitation District staff may immediately and without prior notice remove a sign placed or maintained, in whole or in part, on Sanitation District property. Should a sign present a traffic hazard or other such dangerous condition, the sign should be removed as soon as practical. All other signs should be removed as the Sanitation District work schedule permits. B) Notification of Removal No notification prior to removal is necessary. If the Sanitation District removes the sign and the name and address of the owner is reasonably ascertainable, the Sanitation District will notify the owner of the sign's removal within five working days of the date of removal and provide the owner information regarding retrieval of the sign. Reasonably ascertainable means that the name and mailing address of the owner are displayed on the sign, or a name is displayed on the sign from which the Sanitation District can identify the name and address of the owner. C) Storage of Removed Signs To the extent possible, if the owner is reasonably ascertainable, removed signs should be stored pending disposal or return to the rightful owner(s). Such signs should be stored in such a manner as to minimize damage. D) Disposal of Signs Sanitation District staff may dispose of a removed sign unless it is claimed by the owner within 3 days after the date of removal or the date of notice, whichever is later. If the owner of the sign is not reasonably ascertainable, the Sanitation District may dispose of a removed sign upon removal. CEQA N/A Page 3 of 3 FINANCIAL CONSIDERATIONS The revisions to the Policy are not expected to have any major effects on the budget. ATTACHMENT The following attachment(s) are attached in hard copy and may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package and attachments: • Proposed Resolution No. OCSD 18-XX OCSD 18-XX-1 1352001.1 RESOLUTION NO. OCSD 18-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING THE “SIGN REMOVAL POLICY” WHEREAS, the Orange County Sanitation District (“Sanitation District”) owns, operates, and maintains real property and easements with various sewer facilities throughout its jurisdiction; and WHEREAS, many of the building walls and fences comprising and surrounding these sewer facilities border public rights-of-way or are otherwise accessible to the public; and WHEREAS, signs, flyers, banners, and/or advertisements are, from time to time, posted by individuals, community groups, or other third parties on Sanitation District property; and WHEREAS, to prevent litter and blight, and to preserve the health and safety of Sanitation District employees, the Board of Directors has determined that staff may remove all such signs, banners, flyers, advertisements, and/or any object containing or bearing writing that is affixed, posted or fastened to Sanitation District property. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1. The Board of Directors adopts the Sign Removal Policy attached hereto as Exhibit “A”. PASSED AND ADOPTED at a regular meeting of the Board of Directors held ____________________, 2018. ________________________________ Gregory C. Sebourn, PLS Board Chairman ATTEST: ______________________________ Kelly A. Lore, MMC Clerk of the Board OCSD 18-XX-2 1352001.1 STATE OF CALIFORNIA ) ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 18-XX was passed and adopted at a regular meeting of said Board on the 28th day of November 2018, 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 28th day of November 2018. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District 1356621.1 ORANGE COUNTY SANITATION DISTRICT BOARD OF DIRECTORS POLICY Control Number: Version Number: 1 Approved By: Resolution No. OCSD 18-XX Approved Date: 11/28/2018 Subject: Sign Removal Policy Effective Date: 11/28/2018 I. Purpose –The Sanitation District owns, operates, and maintains real property and easements with various sewer facilities throughout its jurisdiction. Recently, Sanitation District staff has noted an increasing number of signs, banners, and/or advertisements posted by individuals, community groups, or other third parties on Sanitation District property. This sign removal policy will prevent litter and blight and preserve the health and safety of Sanitation District employees by allowing staff to remove all such signs. II. Organizational Units Affected – All Sanitation District departments. III. Policy Statement It is the policy of the Sanitation District to remove, without notice, all signs, banners, advertisements, and/or any object containing or bearing writing that is affixed, posted or fastened to Sanitation District property by third parties. IV. Procedures A. Sign Removal Sanitation District staff may immediately and without prior notice remove a sign placed or maintained, in whole or in part, on Sanitation District property. Should a sign present a traffic hazard or other such dangerous condition, the sign should be removed as soon as practical. All other signs should be removed as the Sanitation District work schedule permits. B. Notification of Removal No notification prior to removal is necessary. If the Sanitation District removes the sign and the name and address of the owner is reasonably ascertainable, the Sanitation District will notify the owner of the sign's removal within five working days of the date of removal and provide the owner information regarding retrieval of the sign. Reasonably ascertainable means that the name and mailing address of the owner are displayed on the sign, or a name is displayed on the sign from which the Sanitation District can identify the name and address of the owner. C. Storage of Removed Signs To the extent possible, if the owner is reasonably ascertainable, removed signs should be stored pending disposal or return to the rightful owner(s). Such signs should be stored in such a manner as to minimize damage. 1356621.1 D. Disposal of Signs Sanitation District staff may dispose of a removed sign unless it is claimed by the owner within 3 days after the date of removal or the date of notice, whichever is later. If the owner of the sign is not reasonably ascertainable, the Sanitation District may dispose of a removed sign upon removal. V. Revision History Version Date By Reason 1 New Implementation Page 1 of 2 STEERING COMMITTEE Meeting Date 11/28/18 To Bd. of Dir. 11/28/18 AGENDA REPORT Item Number 3 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: REVISED POLICY REGARDING BOARD OF DIRECTORS’ EXPENSE REIMBURSEMENT, MEETING ATTENDANCE AND COMPENSATION GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 18-XX entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District Adopting a Revised Policy Regarding Board of Directors’ Expense Reimbursement, Meeting Attendance and Compensation; and Repealing Resolution No. OCSD 15-06.” BACKGROUND At the March 2018 Steering Committee meeting, staff was directed to revise the written policy regarding: travel approval, reimbursement of expenses, and possible cost sharing among those agencies benefitting from the travel. In addition to providing clarity, this revised policy requires that: 1) Reimbursement rates must be consistent with GSA Per Diem rates 2) All reimbursements that are delinquent or exceed policy be approved by the Board RELEVANT STANDARDS • Comply with Government Code Section 53232.2 • Comply with Internal Revenue Service Publication No. 463 PROBLEM The Orange County Sanitation District’s (Sanitation District) current policy required additional clarity and guidance for reviewing and approving requests by Board Members to attend conferences and other events and to travel at the Sanitation District’s expense. Staff recommends adopting a new policy to ensure there is clear, consistent policy guidance that complies with all applicable laws and regulations. PROPOSED SOLUTION Provide policy direction for the Board of Directors and staff to administer travel approvals and expense reimbursements for Board Members attending conferences or traveling on Sanitation District business. Page 2 of 2 TIMING CONCERNS The Sanitation District will continue approving conference attendance and paying Board Member travel expenses in the absence of clear, consistent policy guidance. RAMIFICATIONS OF NOT TAKING ACTION Not taking this action will prevent the Sanitation District from providing clear guidance to Board Members seeking approval to attend a conference or request reimbursement for travel expenses. PRIOR COMMITTEE/BOARD ACTIONS February 2015 - Adopted Resolution No. OCSD 15-06, a Revised Policy Regarding Board of Directors’ Expense Reimbursement and Meeting Attendance and Compensation and to include a formal written policy regarding compensation mileage for Directors traveling to District meetings with reimburse mileage determined by the actual distance traveled from the closest starting point from the District. March 2014 - Adopt Resolution No. OCSD 14-04 - Minor revisions were made to the previous resolution including: Reimbursement rates needed to be adjusted slightly to reflect the present cost of travel; conforming to the Ordinance setting the compensation of Directors; clarifying events and expenses that are subject to reimbursement and compensation and reorganizing the policy for easier reference. May 2006 - Adopt Resolution No. OCSD 06-11, A Resolution of the Board of Directors of Orange County Sanitation District Establishing a Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and Meeting Attendance and Compensation, and Repealing Resolution No. OCSD 06-09. CEQA N/A FINANCIAL CONSIDERATIONS The revisions to the Policy are not expected to have any major effects on the budget. ATTACHMENT The following attachment(s) are attached in hard copy and may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package and attachments: • Proposed Resolution No. OCSD 18-XX • Resolution No. OCSD 15-06 OCSD 18-XX-1 RESOLUTION NO. OCSD 18-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ADOPTING A REVISED POLICY REGARDING BOARD OF DIRECTORS’ EXPENSE REIMBURSEMENT, MEETING ATTENDANCE AND COMPENSATION; AND REPEALING RESOLUTION NO. OCSD 15-06 WHEREAS, pursuant to Government Code section 53232.2, the Board of Directors adopted a written policy governing compensable activities and reimbursable expenses for travel, meals, lodging, and incidentials; ; and WHEREAS, the Board of Directors desires to revise the policy; NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Adoption of Policy and Establishment of Procedures. The Board of Directors hereby adopts the Directors Compensation and Expense Reimbursement Policy, set forth as Exhibit “A”, attached hereto and incorporated herein by reference. Section 2: Rescission of Inconsistent Resolutions and Policies. Resolution No. OCSD 15-06 is hereby repealed. In addition, any prior resolutions and/or policies established by the Board of Directors that conflict with the policy set forth in Exhibit “A” shall be deemed rescinded to the extent of such conflict. PASSED AND ADOPTED at a regular meeting of the Board of Directors held 28th day of November 2018. ___________________________________ Gregory C. Sebourn, PLS Chairman of the Board ATTEST: ________________________________ Kelly A. Lore, MMC Clerk of the Board OCSD 18-XX-2 STATE OF CALIFORNIA ) ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 18-XX was passed and adopted at a regular meeting of said Board on the 28th day of November 2018, 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 28th day of November 2018. Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District 1 EXHIBIT “A” ORANGE COUNTY SANITATION DISTRICT BOARD OF DIRECTORS’ COMPENSATION AND EXPENSE REIMBURSEMENT POLICY This Policy governs compensation and reimbursement of expenses for members of the District’s Board of Directors. The Policy applies to both regular members of the Board and alternate members. ARTICLE I. DIRECTORS’ COMPENSATION Pursuant to an ordinance adopted by the Board of Directors, the District is authorized to compensate Board members in a specified amount for (1) attending each meeting of the Board of Directors, and (2) otherwise providing a day of service to the District. The ordinance limits compensation to a specified maximum number of days per month. The Board of Directors may, from time to time, amend the ordinance to change the amount of compensation and/or the maximum number of compensable days per month. As required by state law, 1 this Article identifies those activities that are compensable. Section 1: Compensable Activities. A. Meetings. Each regular Director shall be entitled to compensation for attendance at (1) each meeting of the Board of Directors; (2) each meeting of the Standing Committee on which the Director serves; (3) each meeting of an Ad Hoc Committee to which the Director has been duly appointed; and (4) each meeting of any joint governmental board, committee, or association to which the Director has been appointed as the District’s representative. Each alternate Director shall be entitled to compensation for attendance at a meeting when, and only when, the alternate Director attends the meeting in place of the regular Director. B. Required Training. Each Director shall be entitled to compensation for attendance at the ethics training required by Government Code Section 53235 and the sexual harassment training and education required by Government Code Section 12950.1. C. Other Activities. The Chair of the Board of Directors may, on a case-by- case basis, authorize compensation of individual Directors for participating in the following types of activities: (1) meetings with representatives of local, regional, state, or national government on issues affecting the District; (2) meetings, conferences, and seminars sponsored by the California Association of Sanitation Agencies or the California Special 1 Health & Safety Code section 4733(c) and Government Code section 53232 et seq 2 Districts Association; (3) ceremonial events sponsored by the District; (4) ceremonial events sponsored by another organization if the Board Chair has authorized the Director to represent the District at the event; (5) meetings of a Standing Committee or Ad Hoc Committee when the Director is not a committee member; (6) meetings of agencies, nonprofit organizations, or service clubs when the Board Chair has authorized the Director to make a presentation on behalf of the District; and (7) meetings with District staff, including telephone conferences when physical attendance is impractical. In addition, the Steering Committee may, on a case-by-case basis, authorize compensation of individual Directors for attending meetings, conferences, or seminars relating to wastewater, local government, and/or other matters within the Board’s jurisdiction. D. Considerations. The Board Chair and the Steering Committee shall approve compensation under Section C above only for activities that provides a benefit to the District. Benefits include, but are not necessarily limited to, the acquisition of information, education, training, and skills that will further the District’s ability to protect public health and the environment by providing effective wastewater collection, treatment, and recycling. Other benefits include positive changes to federal and state statutes and regulations that govern the District, and maintenance of positive relations with the public and other governmental agencies. Section 2: Limitation. In no event shall a Director receive compensation for more than one meeting or other activity on the same day. Section 3: Non-Compensable Activities. Notwithstanding Section 1 above, Board members shall not receive compensation for the following activities: (1) attendance at meetings or events of nonprofit organizations or service clubs, except when the Board Chair has authorized the Director to make a presentation on behalf of the District as described in Section I.1.C. above; (2) District-sponsored employee events including, but not limited to, the annual employee holiday luncheon and retirement events; (3) parades, festivals, holiday events, or retirement dinners; (4) meetings with existing or potential contractors, vendors, or consultants; (5) meetings of partisan political organizations; (6) meetings, tours, and similar events conducted at the request of the Board member; or (7) any activity not described in Section 1.C. above. ARTICLE II. REIMBURSEMENT OF DIRECTORS’ EXPENSES Section 1: Approved Activities. In accordance with the terms of this Policy, the District will reimburse Directors for certain expenses incurred in connection with the compensable activities described above in Article I. The District will not reimburse Directors for any other expenses. 3 Section 2: Reimbursable Expenses. A. Transportation. In travelling to and from events, Directors must use the most economical form of transportation that is reasonably consistent with the Director’s travel and scheduling requirements. i. Mileage for Personal Vehicles. The District will reimburse Directors for use of personal vehicles based on actual miles traveled at the then-current “standard mileage rate” adopted by the U.S. Internal Revenue Service for use in deducting the cost of operating an automobile for business purposes. The District will not reimburse Directors for any other personal vehicle expenses. When calculating mileage traveled by a Director to attend an event, the District will use the lesser of (1) the distance from the administrative headquarters of the Director’s member agency to the event, and (2) the actual distance traveled. Mileage reimbursements shall not exceed the cost of the lowest available airfare. ii. Other Transportation Expenses. When travel by personal vehicle is impractical, the District will reimburse Directors for the actual cost of (1) regularly-scheduled travel by airplane, train, bus, or other commercial carrier, (2) rental cars, and (3) taxis and other comparably-priced for-hire vehicles. The District will also reimburse Directors for related necessary travel expenses such as baggage fees, toll charges, and parking fees. Directors must take advantage of any government or group rates offered by a transportation provider. Before deciding to travel by air, each Director must consider the total cost of alternatives, including the cost of ground transportation and any necessary lodging. Each Director should also consider alternative departure times, departure and arrival airports, dates, departure times, and stopovers to minimize airfare. Directors should request travel arrangements as early as possible to take advantage of lower airfares. Generally, the District will only reimburse Directors for air travel in coach class. When necessary based on a Director’s physical needs and/or the need to conduct meaningful work during a flight, the Board Chair has the discretion to approve reimbursement of first class air travel. For trips that will exceed 24 hours, Directors must use their personal cars to travel to and from the airport, and utilize long-term airport parking, rather than pay for a taxi or other transportation to and from the airport. B. Lodging. The District will reimburse Directors for actual and necessary lodging expenses incurred in attending a conference, seminar, or meeting. Directors must take advantage of any government rate or group rate for lodging whenever possible. If there is no 4 government or group rate, the District will reimburse Directors for lodging up to the per diem rate used by the U.S. Internal Revenue Service as the maximum allowable deduction for business-related lodging expenses. The per diem rates are set by the General Service Administration (“GSA”) for federal employees. The rates are set forth at GSA.gov/per diem. Lodging in connection with an activity that lasts only one day is considered “necessary” when the travel time to and from the activity exceeds two hours. C. Meals. The District will reimburse Directors for actual and necessary dining expenses incurred while attending (1) a conference, seminar, or meeting outside of the District, or (2) a District-related business meeting within the District. The District will reimburse Directors up to the applicable GSA per diem rate for each separate meal set forth at GSA.gov/per diem. D. Incidentals. The District will reimburse Directors for actual and necessary incidental expenses incurred while attending a conference, seminar, or meeting outside the District, up to the applicable GSA per diem rate set forth at GSA.gov/per diem. Reimbursable expenses include tips given to drivers, porters, bellhops, baggage carriers, and hotel housekeepers. E. Travel Arrangements. Each Director must utilize District staff to arrange all travel, lodging, and event registrations. The General Manager shall designate a District employee responsible for making these arrangements. The General Manager shall designate a single travel agency for use in making all travel arrangements. Section 3: Expenses That Are Not Reimbursable. The District will not reimburse Directors for the costs of: (1) barber and/or beauty shop services; (2) fines for traffic or parking violations; (3) any person accompanying a Director on a District-approved trip or event; (4) personal telephone calls; (5) fitness/health facility use; (6) massages; (7) alcoholic beverages; (8) entertainment (movies, sporting events, etc.); or (9) vehicle expenses other than the standard mileage charge. Section 4: Reimbursement Procedure. Each Director seeking reimbursement must file with the Clerk of the Board an expense report no later than three weeks after the conclusion of the compensable activity. The report shall attach detailed, actual receipts for all expenses. The report shall document that each expense meets the requirements for reimbursement set forth in this policy. Without limiting the foregoing, each report shall identify the compensable activity 5 and the date, nature, and purpose of each expense for which reimbursement is sought. For reimbursement of a personal vehicle expense at the standard mileage rate, the expense report shall identify the date of the travel, the actual miles traveled, and the business purpose of the travel. The General Manager shall prepare a standard form of expense report for use by Directors in seeking reimbursement. Section 5: Board Reports. Each Director seeking reimbursement of expenses incurred in connection with an activity shall provide a brief report of the activity at the next regular meeting of the Board of Directors. Section 6: Other Expenses. Any expense that does not meet the requirements of this policy may be reimbursed only if the Board of Directors approves the expense at a public meeting before the expense is incurred. ARTICLE III. PENALTIES. Any Director that misuses public resources or falsifies an expense report required by this policy is subject to the following penalties: (1) loss of reimbursement privileges; (2) restitution of the District; (3) civil penalties for misuse of public resources pursuant to Government Code Section 8314; and/or (4) prosecution for misuse of public resources pursuant to Penal Code Section 424. RESOLUTION NO. OCSD 15-06 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ADOPTING A REVISED POLICY REGARDING BOARD OF DIRECTORS' EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE AND COMPENSATION AND REPEALING RESOLUTION NO. OCSD 14-04 WHEREAS, pursuant to Government Code section 53232.2, the Board of Directors has adopted a written policy specifying the types of occurrences that qualify a member of the Board of Directors to receive reimbursement of expenses related to travel, meals, lodging, and other actual and necessary expenses; and WHEREAS, the District currently has no uniform procedure for calculating and reimbursing travel expenses for meetings; and WHEREAS, the Board of Directors desires to revise its policies to standardize the calculation and reimbursement of travel expenses for meetings; NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Adoption of Policy and Establishment of Procedures. The Board of Directors hereby adopts the revised Policy Regarding Board of Directors' Expense Reimbursement and Meeting Attendance and Compensation, set forth on Exhibit "A", attached hereto and incorporated herein by reference. Section 2: Rescission of Inconsistent Resolutions and Policies. Resolution No. OCSD 14-04 is hereby rescinded. In addition, any prior resolutions and/or policies established by the Board of Directors that are in conflict with the policy set forth in Exhibit "A" shall be deemed rescinded to the extent of such conflict. PASSED AND ADOPTED at a regular meeting of the Board of Directors held February 25, 2015, of the Board 1069790.1 Tom Beamish Chairman of the Board OCSD 15-06-1 STATE OF CALIFORNIA ) ) SS COUNTY OF ORANGE ) I, Kelly Lore, Acting Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 15-06 was passed and adopted at a regular meeting of said Board on the 25th day of February, 2015, by the following vote, to wit: AYES: Beamish; Choi; Curry; Ferryman; Jones; Kiley; Kim ; Kring; Massa-Lavitt (Alternate) Mills; R. Murphy; Nagel; Nielsen; Peterson (Alternate); Sebourn; Shawver; F. Smith; T. Smith; Tinajero; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett; Diep and Parker IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 25th day of February, 2015. 1069790.1 OCSD 15-06-2 EXHIBIT "A" ORANGE COUNTY SANITATION DISTRICT POLICY REGARDING BOARD OF DIRECTORS' EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE AND COMPENSATION This Policy applies to all regular District Board Members and Alternate Board Members. ARTICLE I: TERMS AND DEFINITIONS As used in this Policy, the following terms shall have the identified meanings. "Accountable Plan" shall mean the Internal Revenue Service Publication No. 463 for Travel, Entertainment, Gift and Car Expenses, or any successor publication. "Alternate Board Member" shall mean a Member of the District's Board of Directors designated by the Director's agency to serve in the absence of the Board Member. "Board Chair" shall mean the Member of the District's Board of Directors who has been elected by the other Members to serve as Chair. "Board Vice-Chair" shall mean the Member of the District's Board of Directors who has been elected by the other Members to serve as Vice-Chair. Whenever this Policy authorizes or requires the Board Chair to act, the Board Vice-Chair may act in the event that the Board Chair is reasonably unavailable to act. "Board Member" shall mean a Member of the District's Board of Directors, appointed by a member agency pursuant to California Health and Safety Code Section 4730.65. "Director" shall mean a Member of the District's Board of Directors, and is the same as "Board Member" as described above. "Incidentals" shall mean any minor, miscellaneous expense incurred during travel, including but not limited to, telephone, facsimile or computer connection service, local ground transportation, baggage handling and storage, and snacks. "Travel Liaison" shall mean the Secretary to the General Manager, or such other employee as designated in writing by the General Manager. 1069790.1 OCSD 15-06-3 ARTICLE II. BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT Section 1: General Provisions. The District shall reimburse Board Members for actual and necessary expenses incurred in the performance of their official duties, in accordance with this Article II. Reimbursable expenses include, but are not necessarily limited to, expenses related to travel, meals, and lodging. This Policy serves as the District's "Accountable Plan" under the applicable requirements of the Internal Revenue Code and Treasury Regulations. Section 2: Activities Eligible for Reimbursement. Board Members may receive reimbursement for actual and necessary expenses incurred in the performance of official duties in connection with the following activities: i. Communicating with representatives of regional, state, and national government on issues or matters affecting the District; ii. Attending conferences and/or educational seminars designed to improve the Board Members' expertise and information levels, including, but not limited to, ethics training required pursuant to Government Code Section 53234; iii. Participating in regional, state, and national organizations whose activities support the District's interests; iv. Attending District events at the invitation of the Board Chair, General Manager, or his/her designee; and v. Implementing a strategy approved by the District for District-related matters. vi. Meetings such as those listed above for which compensation is expressly authorized under this Policy. A Board Member and his or her Alternate Board Member cannot both be compensated for attendance at the same event without prior approval by the Board Chair. Section 3: Responsibilities. A. Directors shall be familiar with and comply with this Policy; ensure that all travel and other reimbursable expenses are reasonable; coordinate multiple Director participation at conferences to avoid unnecessary duplication; and promote economic means of travel. The Board Chair may approve or deny requests for travel or business activities and reimbursements for Board Members. 1069790.1 OCSD 15-06-4 B. The General Manager shall be familiar with and comply with this Policy; ensure all travel and other reimbursable expenses are reasonable; coordinate multiple Director participation at conferences; and promote economic means of travel. C. The Travel Liaison shall be familiar with and comply with this Policy; promote economic and reasonable means of travel; and inform the General Manager of all travel expenses that have not been reconciled. The Travel Liaison will also arrange all travel, lodging, accommodations, and seminar/conference registrations for Directors. The Travel Liaison shall use the District's designated travel agency for booking all air and ground travel. The General Manager is authorized to grant exceptions on a case- by-case basis. Any travel or registration not booked through the Travel Liaison, or not granted an exception, may be subject to payment by the Director without reimbursement from the District. D. The District Controller shall be familiar with and comply with this Policy; ensure all travel and other reimbursable expenses conform to this Policy. Section 4: Designated Travel Agency. The District will designate a single travel agency for the Travel Liaison to use to arrange all travel and lodging accommodations for Directors. Section 5: Seminars. Conferences. and Meetings. A. Directors may from time to time receive requests or may elect to attend meetings or conferences pertaining to the water and wastewater utility industry. Attendance at seminars, conferences, and meetings, such as the aforementioned, must be approved in advance by the Steering Committee, except when specifically pre- authorized by this Policy. In the event there is not sufficient time to receive approval from the Steering Committee, the Board Chair has the authority to approve such a request in advance. Any such approval shall be ratified by the Steering Committee at its next regularly scheduled meeting. B. Directors may be asked to, or may desire to, give presentations or otherwise represent the District at seminars, conferences, or meetings. Any Director wishing to attend such events and represent the District by providing a presentation or oral commentary shall request and receive advance authorization from the Steering Committee. If such a request is granted, all expense reimbursements and travel and meeting attendance requirements shall comply with this Policy. In the event there is not sufficient time to receive authorization to act as District representative from the Steering Committee, the Board Chair has the authority to approve such a request in advance. Any such approval shall be ratified by the Steering Committee at its next regularly scheduled meeting. 1069790.1 OCSD 15-06-5 C. The number of Directors attending a seminar, conference, or meeting should be minimized, and there must be a District business reason for attendance. Such reasons would include, but are not limited to: presentation of technical findings; attendance at committee meetings, or technical sessions dealing with issues related to District business; or participation as an officer of the association or trade group organizing the event. D. Seminars must be selected based on value to the District. Benefits would include improved efficiency and effectiveness, as well as becoming familiar with new regulatory standards. Preference will be given to seminars that are provided within the Southern California region. E. Attendance at seminars, conferences, or meetings in "destination resort" areas outside California or areas outside the continental United States may only be approved by the Steering Committee. Section 6: Ground Transportation. A. The most economical mode and class of transportation reasonably consistent with travel and scheduling requirements will be used. Each Director shall be reimbursed at the rate per mile established by the United States Internal Revenue Service as allowable for mileage expense deduction for use of a personal vehicle on business of the District. As said allowable rate established by the Internal Revenue Service is periodically changed, said changes in the reimbursement rate shall become effective on the first day of the month following the month in which the change is announced by the Internal Revenue Service. B. In no event shall the amount paid for mileage reimbursement for use of a personally-owned vehicle used for travel in lieu of air travel, exceed the lowest available cost of coach class airfare. C. Personally-owned vehicles used in the conduct of District business must be insured for property and liability damage in an amount not less than the minimum limits required by the California Financial Responsibility Act. D. Reasonable vehicle parking and storage costs will be allowed when rental or personally-owned vehicles are used for District business. E. Highway and bridge tolls are allowable expenses when incurred while conducting District business. F. Directors should only use rental cars for ground transportation when necessary or when it is less expensive than other forms of transportation such as trains, buses, taxis, or shuttles. Discretion must be used in selecting rental car size. The rental car should be the smallest size that provides adequate safety and comfort for the 1069790.l OCSD 15-06-6 period of time it is in use. To accommodate a group of travelers, a larger vehicle may be rented in lieu of renting separate vehicles. G. Directors will not be reimbursed for any surplus insurance purchased for rental cars. The District and Director are sufficiently insured through existing District policies. Only Directors are allowed to operate rental cars. H. Use of chauffeur-driven limousines is not allowed while conducting District business. I. When using ground transportation other than personally-owned vehicles, Directors shall use government and group rates offered by the provider of transportation services when available. Section 7: Air Travel . A. Air Travel must be at coach class level. First class travel will only be allowed on an exception basis and must be approved in advance by the Board Chair, based upon physical needs or ability to conduct meaningful work while on board. B. Air Travel should be arranged as early as possible to take advantage of reduced fares for early reservations. Consideration should be given to alternative departure times, departure and arrival airports, dates, flight times, and stopovers to minimize airfares; however, the total cost of the alternatives (e.g., ground transportation, lodging) should also be considered in selecting an alternative. Internet booking services can be consulted to help in finding the optimum alternative; however, flights must still be reserved by the Travel Liaison. C. Government and group rates for airline travel shall be used when available. Section 8: Lodging. A. Government and group rates offered by a provider of lodging services shall be used when available. B. When travel is to a conference or organized educational activity, lodging costs shall not exceed the maximum group published by the conference or activity sponsor. Some conferences require early booking to take advantage of reduced rates. If lodging cannot be arranged at the conference group rate, other lodging accommodations may also be arranged if the cost is less than or equal to the conference group rate. C. Overnight stays may be allowed for meetings or training functions lasting more than one day in OCSD's general geographical area (Orange, Los Angeles, 1069790.1 OCSD 15-06-7 Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties) when the travel time involved is significant. Section 9: Meals and Incidentals. Meal expenses are allowed while Directors are traveling. Expenditures for meals will be moderate and reasonable. Expenses for meals not associated with travel but related to an appropriate business purpose meeting, are also allowed. Non-travel business meals will only be reimbursed if taken in conjunction with a District business meeting. All meals that are subject to reimbursement will not exceed the rates indicated below. A. Reimbursement Rates. Directors will be reimbursed for actual meal expenses, including all taxes and gratuities, up to the amounts in Internal Revenue Service Publication 463, or any successor publication, or as specifically indicated below, whichever is less. If meal expenses exceed the allowance amount, the Director will only be reimbursed the allowance amount, with the remainder being paid by the Director. If meal expenses are less than the allowable amount, only the actual expense amount will be reimbursed. All meal expenses must be documented in detail in accordance with this Policy. When receipts are provided, the maximum per meal/expense reimbursements are as follows: Breakfast Lunch Dinner Snacks $15.00 $20.00 $30.00 $10.00 Multiple meal expenses cannot be combined to pay for a more expensive single meal. The Policy is applied strictly as a per meal expense. In no event will a Director be reimbursed more than $75 per travel day. Receipts must provide a detailed account from the restaurant describing actual costs. Restaurant bill stubs do not provide sufficient detail and are not acceptable for reimbursement. Credit card receipts may be accepted, subject to Board Chair approval if itemized, if detailed meal receipts are not provided by the restaurant. B. Non-Reimbursable Meals and Incidentals. Directors will not be reimbursed for the following: i. Meals that are included in the cost of a conference or seminar, nor for meals taken elsewhere in lieu of the meal provided. ii. Meals provided by others. Conflict of interest policies and applicable statutes should be considered when providing meals for or receiving meals from persons or entities other than the District representatives. 1069790.1 OCSD 15-06-8 iii. Meals provided to a spouse or guest. iv. Alcoholic beverages. Section 10: Extended Travel and/or Travel with Family Members. A. When a Director elects to extend his/her stay at travel destinations, or when traveling with family members, all expenses related to such extended or family travel, including, but not limited to airfare, extra meals, extended car rental, lodging, or incidentals shall be paid by the Director without reimbursement. B. When travel time restrictions or transportation discounts make it desirable for a Director to arrive at a conference, seminar, or meeting a day early, or to stay an additional day, those travel days must be approved by the Board Chair in advance. Section 11: Requests for Reimbursement. A. Requests for reimbursement shall be submitted and coordinated through the Travel Liaison, no later than three weeks after the travel has concluded. The Travel Liaison shall ensure that all applicable forms and receipts are prepared and attached, and follow District procedure on expense reimbursement. A delinquent expense report will not be reimbursed unless justified in writing and approved by the Board Chair. All requests for reimbursement must be accompanied by receipts or documentation evidencing each expense. Improper expenditures, or those not adequately documented, will not be reimbursed. Non-essential expenses, including but not limited to, in-room movies, service bar, and similar extras will not be reimbursed. B. All expense reports shall include detailed receipts and state the date, type of expense, District business purpose, those in attendance and their affiliations, and amounts expended. If a receipt is misplaced or lost, a lost/unavailable receipts memorandum must be prepared detailing the information required for the expense report, including the date, payee, description of the expense, business purpose, those in attendance, and the amount. The memorandum must be signed by the General Manager and attached to the reimbursement request. Section 12: Brief Reports to Board. At the next regular meeting of the Board of Directors following the event for which reimbursable expenses are incurred, Directors shall briefly report, orally or in writing, on any meetings attended at District expense. If multiple Directors attended the meeting at District expense, a joint report may be made to the Board of Directors. 1069790.1 OCSD 15-06-9 Section 13: Misuse of Resources; Falsification of Reports. Any Board member that misuses public resources, or falsifies expense reports, may lose reimbursement privileges, be required to pay restitution, and/or be subject to civil penalties and/or criminal prosecution. ARTICLE Ill. COMPENSATION Section 1: Stipends and Compensation. A. Rate. Directors shall be paid compensation for each meeting attended and for each day's service rendered as a member of the Board, at the rate established by District Ordinance, in accordance with this Policy. Directors may receive compensation up to a maximum number of days each month, as prescribed by District Ordinance. B. Authorized Meetings. Directors shall receive compensation, without further action or authorization of the Steering Committee or Board of Directors, for attendance at the following: i. Board of Directors Meetings, Standing Committee Meetings, Special Committee Meetings, and Ad Hoc Committee Meetings, at which the Director is a duly appointed member; ii. Meetings, conferences, and committee meetings of the California Association of Sanitation Agencies, and the National Association of Clean Water Agencies; iii. Meetings of other governmental agencies to which the Director was appointed by the Board Chair; iv. Meetings or events approved by the Board Chair. Meetings or events not approved by the Board Chair or listed above are not considered business of the District. C. Travel Reimbursement. For the purposes of calculating mileage to attend the meetings described in Section 1 B of this Article, Directors shall be reimbursed for the lesser of: the mileage from their primary administrative local government office, or the actual distance travelled. 1069790.1 OCSD 15-06-10 Section 2: Waiver of Compensation. Directors may waive their compensation or so choose to be compensated at a lower rate than the rate established under District Ordinance. Such requests must be submitted in writing to the Clerk of the Board. Section 3: Additional Service Subject to Compensation. Each day's service rendered as a Member of the District's Board of Directors shall be deemed to include, but not be limited to: A. Attendance at any meeting of a Committee of which the Director is not a member, when expressly invited or requested to attend by the Board Chair. B. Attendance at conferences or meetings with State and/or Federal Legislators regarding District business, when approved by the Steering Committee. C. Attendance at a meeting, hearing, or conference relating to the business of the District, when approved by the Steering Committee or Board Chair, or when designated by the General Manager with the concurrence of the Board Vice-Chair in advance, and when deemed to be in the best interests of the District, including but not limited to the following: i. Meetings of nonprofit organizations or service club meetings where a Board Member is making a presentation on behalf of the District. ii. Ceremonial events when attending as an official representative of the Board of Directors of the District. iii. Meetings with other elected officials or their employees, which may or may not include District staff. iv. Meetings of the governing body of another agency, of which the District has an official delegate, where a matter directly affecting the interests of the District is agendized for discussion and the Board Member is not compensated by the other agency. v. Meetings with District Staff. vi. Industry related conferences other than California Association of Sanitation Agencies' or National Association of Clean Water Agencies' work conferences. vii. Telephone conferences when physical attendance is impractical and not mandatory. 1069790.1 OCSD 15-06-11 viii. Ethics training required by Government Code sections 53234 - 53235.5. Section 4: Non Compensable Attendance. Board Members shall not be compensated for the following meetings where there is no District-related business to be conducted: A. Nonprofit organization meetings. B. Nonprofit organization events. C. District-sponsored employee events, including, but not limited to, the annual holiday luncheon, employee picnic, or retirement events. D. Social or ceremonial events not pre-authorized by the Steering Committee. E. Service club meetings other than those included in Sections 1 and 3 above. F. Parades, festivals, holiday events, or retirement dinners. G. Meetings with existing or potential contractors, vendors, or consultants. H. Meetings of partisan political organizations. I. Meetings, tours, and similar events conducted at the request of the Board Member. Section 5: One meeting per day. No Director shall receive compensation for attendance at more than one meeting on any one calendar day. Section 6: Alternates. No Alternate Director shall receive compensation for attendance at any meeting or event unless serving in the absence of the regular Director, unless the Board Chair invites the Alternate Director to attend the meeting and approves payment of compensation. 1069790.1 OCSD 15-06-12 ARTICLE IV. EFFECTIVE DATE This Policy was duly adopted by action of the Board of Directors, on February 25, 2015 and shall be effective upon its adoption. 1069790.1 OCSD 15-06-13 Page 1 of 3 STEERING COMMITTEE Meeting Date 11/28/18 To Bd. of Dir. 11/28/18 AGENDA REPORT Item Number 4 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Celia Chandler, Director of Human Resources SUBJECT: LABOR RELATIONS – CONTRACT NEGOTIATIONS GENERAL MANAGER'S RECOMMENDATION Authorize/Direct the Steering Committee to form an Ad Hoc Committee for the purpose of interviewing and selecting an external Chief Negotiator for the upcoming contract negotiations with all six (6) bargaining units at the Orange County Sanitation District. BACKGROUND Since 2002, the Orange County Sanitation District (Sanitation District) has primarily utilized external Chief Negotiators, labor attorneys and experts in labor law, to negotiate labor contracts. In 2002, the Board of Directors hired Steve Filarsky, from Filarsky & Watt, as the Chief Negotiator to negotiate contracts with all six (6) of the Sanitation District’s bargaining units. During the subsequent round of contract negotiations in 2007, the Board directed then General Manager, Jim Ruth, to serve as the internal Chief Negotiator with all bargaining units. After his retirement, Mr. Ruth was hired as an external Chief Negotiator to conduct contract negotiations with the Supervisor and Professional Management Group (SPMT) in 2013. In 2014, the Board of Directors authorized Mr. Filarsky to serve as an external Chief Negotiator for contract negotiations with the Orange County Employees Association (OCEA) and the International Union of Operating Engineers Local 501 (Local 501). During the most recent round of negotiations in 2016, the Board of Directors authorized Laura Kalty from Liebert, Cassidy, & Whitmore to serve as the external Chief Negotiator to negotiate contracts with all six (6) of the Sanitation District’s bargaining units. RELEVANT STANDARDS • Cultivate a highly qualified, well trained, motivated, and diverse workforce • Offer competitive compensation and benefits • Maintain positive employer-employee relations • Negotiate fair and equitable labor agreements PROBLEM Contract negotiations are expected to begin with all six (6) bargaining units prior to the expiration of their respective MOU’s in June 2019. In preparation for the upcoming negotiations, the Sanitation District’s labor negotiations team and Sanitation District’s Page 2 of 3 Chief Negotiator will need to work closely with Board leadership to set parameters and develop negotiation strategies. PROPOSED SOLUTION It is recommended that the Steering Committee form a three (3) member Ad Hoc Committee for the purpose of interviewing and selecting an external Chief Negotiator from the following short-list of firms recommended by staff: • Liebert, Cassidy, & Whitmore • Rutan & Tucker • Filarsky & Watt • Andelson, Atkinson, Loya, Ruud, & Romo TIMING CONCERNS On June 30, 2019, the Memorandums of Understanding (MOU’s) with all six (6) of the Sanitation District’s bargaining units will expire. It is anticipated that the selection of the Chief Negotiator will be presented to the Board of Directors for consideration and authorization during the December 2018 Board Meeting, leaving approximately six (6) months for preparation and negotiation once the Chief Negotiator is hired. PRIOR COMMITTEE/BOARD ACTIONS On February 24, 2016, the Steering Committee authorized the Board Chair to hire Laura Kalty, from Liebert, Cassidy, & Whitmore, as recommended by the Ad Hoc Committee, to serve as the Sanitation District’s Chief Negotiator for labor negotiations with all six (6) bargaining units. On January 27, 2016, the Steering Committee directed an Ad Hoc Committee to interview and select an external Chief Negotiator from a short-list of vendors including: • Liebert, Cassidy, & Whitmore • Rutan & Tucker • Filarsky & Watt • Atkinson, Andelson, Loya, Ruud, & Romo On January 22, 2014, the Board approved Steve Filarsky as the Chief Negotiator for the OCEA and Local 501 contracts. On January 8, 2014, the Ad Hoc Committee met to interview the firms from the short-list of vendors. The Ad Hoc Committee recommended Steve Filarsky, from Filarsky & Watt for Board consideration at the January 22, 2014 Board Meeting. On December 11, 2013, the Administration Committee elected to form an Ad Hoc Committee to include three (3) Board members for the purpose of interviewing and selecting a Chief Negotiator from the short-list of vendors. Page 3 of 3 On November 20, 2013, the Steering Committee provided direction to the Administration Committee to interview and select an external Chief Negotiator from a short-list of vendors including: • Liebert, Cassidy, & Whitmore • Rutan & Tucker • Filarsky & Watt • Atkinson, Andelson, Loya, Ruud, & Romo ADDITIONAL INFORMATION On June 30, 2019, the Memorandums of Understanding (MOU’s) with all six (6) of the Orange County Sanitation District bargaining units will expire. Three (3) of the bargaining units are represented by the Orange County Employees Association (OCEA). OCEA represents 102 OCSD employees, who perform paraprofessional and administrative jobs. One (1) bargaining unit is represented by the International Union of Operating Engineers - Local 501 (Local 501). Local 501 represents 200 Sanitation District employees, who perform operations, maintenance and other trade-related jobs. The remaining two (2) bargaining units are represented by the Supervisor and Professional Management Group (SPMT) affiliated with the American Federation of State, County and Municipal Employees (AFSCME). SPMT/AFSCME represent 65 Sanitation District employees that are responsible for supervisory duties across all Divisions. In addition, SPMT/AFSCME represent 210 Sanitation District employees holding professional, exempt-level positions who perform analytical work. CEQA N/A FINANCIAL CONSIDERATIONS It is estimated that the cost for labor relations consulting for all negotiations will total $100,000. This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted in the FY 2018-19 annual budget. ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Labor Relations Consulting Firm Information: 1. Atkinson, Andelson, Loya, Ruud & Romo 2. Filarsky & Watt 3. Rutan & Tucker 4. Liebert Cassidy Whitmore Sub Practice Area: Collective Bargaining & Labor Relations AALRR has over 30 years of experience representing municipalities, counties and public agencies in all aspects of their relationships with employees and labor unions, including collective bargaining negotiations, meet and confer issues and grievance arbitrations. We also provide in-service training to clients in contract implementation and interpretation, and in grievance processing. Our services in regard to negotiations include: Acting as spokesperson or advisor in negotiations•Drafting and reviewing proposed contractual language•Consulting with and advising the administration and governing board regarding negotiations•Working with cities and agencies representing clients through mediation and fact-finding• Related Practice Areas Employment Law Cities, Counties & Special Districts Districts May Insist To Impasse On Proposals That Retain Discretion Over Mandatory Subjects of Barga State to Lock in Building Workers Cerritos • Fresno • Irvine • Pleasanton • Riverside • Sacramento • San Diego Cerritos Office 12800 Center Court Drive Suite 300 Cerritos, California 90703 (562) 653-3200 Phone (562) 653-3333 Fax www.aalrr.com Irvine Office 20 Pacifica, Suite 400 Irvine, California 92618 (949) 453-4260 Phone (949) 453-4262 Fax JAY G. TRINNAMAN Senior Associate jtrinnaman@aalrr.com Labor and Employment Law Experience Jay Trinnaman is a Senior Associate in the Cerritos office of Atkinson, Andelson, Loya, Ruud & Romo. Mr. Trinnaman’s background as an attorney includes representing employers in both the public and private sector. His practice emphasizes all aspects of labor relations and employment law matters, including representation of employers in disciplinary and grievance arbitrations, unfair labor practice charges before PERB, EEOC/DFEH charges, collective bargaining, writ of mandate matters, and advice and counsel. In addition to representing California employers, Mr. Trinnaman is licensed to practice law in the State of Nevada where he has had success on behalf of clients in business litigation matters, including: Obtaining an arbitration award of $1.8 million plus attorney’s fees in a breach of contract matter on behalf of a client in the hospitality industry; and obtaining an arbitration award of $1.1 million in damages and attorney’s fees against a client’s former employee for breach of the confidentiality provision of his employment contract. Prior to joining AALRR, Mr. Trinnaman had five years of experience representing clients in the field of law enforcement, including serving as General Counsel for the California Organization of Police and Sheriffs. He has an extensive background in all matters pertaining to the Public Safety Officers Procedural Bill of Rights Act. Publications and Speaking Engagements Mr. Trinnaman has regularly conducted seminars and workshops to groups of public and private sector employers, including the firm’s annual Employment Law Conference, the California Public Employers Labor Relations Association (CALPELRA), the Southern California Public Labor Relations Council, and the County Counsels’ Association of California. He has presented on a wide variety of labor and employment topics, including public employee First Amendment rights, employee privacy rights in an era of new technologies, the Public Safety Officers Procedural Bill of Rights Act and the Firefighters Procedural Bill of Rights Act, employee due process and pre-deprivation rights, reductions in force, off-duty misconduct, the nuts and bolts of proper employee documentation, and defense against retaliation and whistleblowing claims. He also contributes to the firm’s publications. Education Mr. Trinnaman received his Bachelor of Arts degree from Vanderbilt University and his Juris Doctor from the Tulane University School of Law. Admissions 2001, State Bar of California; and 2005, State Bar of Nevada 1 Administrative Hearings Arbitrations before professional neutrals involving private agreement, contract or an administering agency, such as the California State Mediation and Conciliation Service United States Department of Labor Equal Employment Opportunity Commission California Department of Fair Employment and Housing Employment Development Department Department of Industrial Relations California Public Employees' Retirement System Board of Administration California Public Employment Relations Board Civil Service and other Public Agency Commissions and Boards FILARSKY &WATT LLP ATTORNEYS AT LAW OJAI OFFICE STEVE A.FILARSKY 1441 NINETEENTH STREET 408 BRYANT CIRCLE,SUITE C SHARON A.WATT MANHATTAN BEACH,CALIFORNIA 90266 OJAI,CA 93023 (310)545-7825 (805)640-2970 FACSIMILE (310)545-2999 FACSIMILE(805)640-2980 PRACTICE OF THE FIRM: Filarsky & Watt LLP specializes in representing public sector employers statewide in all matters pertaining to employer- employee relations. The firm has been in existence since March 1986. Our firm provides the following services: Personnel Administration Review and develop employee handbooks, personnel rules and policies Design and assist in implementing discipline, grievance and hearing procedures Review and develop recruitment and selection procedures Wage and hour administration Conduct harassment and discipline training Termination and layoff; termination agreements Collective Bargaining and Contract Administration Contract negotiation, administration and enforcement Counseling on collective bargaining Strategy and techniques Collective bargaining representation, including concession bargaining Administrative Proceedings and Employment Litigation Disciplinary hearings, grievances and appeals Investigations Wrongful termination and harassment Title VII and Americans with Disabilities Act Federal and State discrimination and civil rights Writs of mandate Appeals 2 Bear Valley Community Healthcare District Chino Basin Municipal Water District City of Azusa City of Baldwin Park City of Buena Park City of Carlsbad City of Chino Hills City of Colton City of Commerce City of Costa Mesa City of Duarte City of Fullerton City of Glendora City of Hemet City of Hermosa Beach City of Hesperia MANAGEMENT OF THE FIRM: The firm is owned by Steve A. Filarsky and Sharon A. Watt. Steve A. Filarsky is the managing partner. When the firm was formed in 1986, a decision was made to stay small to provide the personalized service not found at larger firms. NEGOTIATIONS EXPERTISE: Mr. Filarsky has served as a chief management-spokesperson in collective bargaining negotiations with law enforcement, fire protection, transit, teacher, and miscellaneous public employee bargaining units. He has represented the following clients in negotiations: City of Lake Elsinore City of La Palma City of Montebello City of Monterey Park City of Orange City of Palos Verdes Estates City of Placentia City of Redlands City of Rialto City of San Gabriel City of Signal Hill City of Yorba Linda Eastern Municipal Water District Orange County Sanitation District Orange County Vector Control District Orange County Water District South Bay Public Regional Communications Authority The agreements negotiated on behalf of these and other employers, depending on the particular philosophy and circumstances of a given agency, have run the gamut from brief understandings limited to benefit items to comprehensive labor-type agreements that define substantially all terms of employment, and through management rights and "zipper" types of clauses, providing protection to management's ability to manage the agency. In addition to conducting negotiations and impasse resolutions for public employers, Mr. Filarsky continually works with cities, counties, and other public agencies that employ staff personnel to do their own negotiations. This arrangement has involved all aspects of consultation and related services, including writing initial bargaining proposals, providing training and advice concerning negotiating strategies, and giving general advice when particular problems arise. 3 LEGAL PROCEEDINGS: Mr. Filarsky has represented public employers in administrative hearings before City Councils, Civil Service Commissions, Personnel Commissions, Arbitrators, Equal Employment Opportunity Commission, Fair Employment Practices and Housing Commission, Public Employment Relations Board, and the Unemployment Insurance Appeals Board. He has represented public employers in Superior Court, State Court of Appeal, California Supreme Court, Federal District Court, Ninth Circuit Court of Appeals and United States Supreme Court proceedings. Examples of such representations, in addition to many of the agencies listed earlier, include: City of Bell City of Bell Gardens City of Brea City of Burbank City of Costa Mesa City of Downey City of Fountain Valley City of La Mirada City of La Puente City of La Verne City of Manhattan Beach City of Malibu City of Norco City of Ontario City of Pismo Beach City of Pomona City of Rancho Cucamonga City of Torrance County of Riverside Rancho California Water District Twin Cities Police Department West Cities Police Communications JPA Mr. Filarsky has the unique distinction of prevailing, unanimously, in both the California State Supreme Court (Filarsky v. Superior Court (2002) 28 Cal.4th 419, 49 P.3d 194, 121 Cal.Rptr.2d 844) and the United States Supreme Court (Filarsky v. Delia (2012) 132 S.Ct. 1657). TRAINING: Mr. Filarsky has conducted workshops for employee discipline, performance evaluation, grievance handling, and negotiations for the League of California Cities, California Public Employer Labor Relations Association, California Joint Powers Insurance Authority and many individual clients. MR. FILARSKY'S BACKGROUND: Mr. Filarsky received his Bachelor of Arts degree in Political Science/Public Administration, graduating Magna Cum Laude, from Loyola University of Los Angeles. He received his Juris Doctor degree from Loyola University School of Law, graduating with honors, in December 1979. Mr. Filarsky was admitted to the California State Bar in May 1980. Before becoming an attorney, Mr. Filarsky was responsible for the labor relations program of the City of Garden Grove for three and one-half years. Prior to that, he was employed by the City of Manhattan Beach. 4 REFERENCES California Joint Powers Insurance Authority Jon Shull, Executive Director (562) 467-8717 City of Brea Tim O'Donnell, City Manager (714) 990-7715 City of Chino Hills Michael Fleager, City Manager (909) 590-1511 City of Costa Mesa Lance Nakamoto Human Resources Manager (714) 754-5899 City of Culver City Serena Wright Human Resources Director (310) 253- 5642 City of Fountain Valley Jean Hirai, Personnel Director (714) 593-4400 City of Fullerton Gretchen Beatty Human Resources Director (714) 738-6360 City of Lake Elsinore Barbara Leibold, City Attorney (951) 471-0465 City of La Mirada Tom Robinson, City Manager (562) 943-0131 City of La Palma Ellen Volmert, City Manager (714) 690-3333 City of Malibu Christi Hogin, City Attorney (310) 643-8448 City of Oceanside John Mullin, City Attorney (760) 435-3979 City of Redlands Enrique Martinez, City Manager (909) 798-7510 City of San Gabriel Steve Preston, City Manager (626) 308-2805 City of San Marino John Schaefer, City Manager (626) 300-0718 City of Signal Hill Ken Farfsing, City Manager (562) 989-7300 Eastern Municipal Water District Paul Jones, General Manager (909) 928-3777 Orange County Vector Control District Michael Hearst, General Manager (714) 721-1824 GUIDING CLIENTS TO SUCCESS Rutan & Tucker’s lawyers are widely known as the best and most effective attorneys in California. Rutan recruits top lawyers from the finest law schools around the country. As a result, Rutan is staffed with attorneys of the highest caliber who provide the most sophisticated legal services available today. Rutan’s commitment to excellence and value set us apart from other top firms, and enable us to meet the challenge of obtaining the desired results for our clients at the best possible cost. Rutan’s roots lie in Orange County, California, and trace back to 1906. Today, Rutan & Tucker’s practice extends nationwide, while maintaining our connection to the fabric of Orange County and California. Rutan & Tucker continues to distinguish itself as Orange County’s largest full-service law firm, as it has for decades, while also developing a significant presence in Silicon Valley. EXCELLENCE INTEGRITY TEAMWORK RUTAN & TUCKER Who We Are PALO ALTO OFFICECOSTA MESA OFFICE NAVIGATE COMPLEX PROBLEMS IN A TIMELY AND EFFICIENT MANNER Rutan & Tucker represents a broad spectrum of clients, from major multinational corporations and financial institutions to family-owned businesses and private individuals; from high technology and industrial enterprises to agricultural firms; from real estate developers to governmental agencies, educational institutions, and charities. The firm’s practice extends throughout the United States and includes both the representation of foreign companies doing business in the United States and domestic companies engaged in activities abroad. Our attorneys come from more than thirty law schools nationwide. Many graduated Order of the Coif or Phi Beta Kappa, were the editors of law reviews or held judicial clerkships. The accomplishments of our attorneys reflect the quality of Rutan & Tucker. Rutan attorneys teach law school classes and professional education courses. Many Rutan lawyers hold significant positions in trade, charitable and civic organizations. The firm’s tradition is one of fresh, strategic thinking and going forward, we will continue to make history with a continued commitment to excellence and integrity for many decades to come. RUTAN & TUCKER People GUIDE OUR CLIENTS THROUGH DIFFICULT SITUATIONS BUSINESS LITIGATION Appellate Practice Group Banking and Finance Construction Law Corporate Restructuring and Creditors’ Rights Intellectual Property/Technology Tax Unfair Competition/Class Action Defense Group CORPORATE/SECURITIES/TAX/INTELLECTUAL PROPERTY Banking and Finance Corporate Restructuring and Creditors’ Rights Intellectual Property/Technology Life Sciences Tax Trusts/Estates EMPLOYMENT/LABOR Agreements and Plan Documents Alternative Dispute Resolution Compliance Audits Counseling on Compliance and Litigation Avoidance Defense of Class-Action Litigation Government Agency Enforcement Proceedings and Investigations Human Resources Policy Review and Development Labor Law Representation Litigation of Disputes in California and Federal Courts GOVERNMENT & REGULATORY LAW Affordable Housing/Economic Development Condemnation/Property Valuation Education Law Environmental Law Government Relations and Political Law Land Use/Natural Resources Tax REAL ESTATE Affordable Housing/Economic Development Banking and Finance Condemnation/Property Valuation Construction Law Corporate Restructuring and Creditors’ Rights Environmental Law Land Use/Natural Resources Tax RUTAN & TUCKER Areas of Expertise Rutan’s BUSINESS LITIGATION lawyers are skilled advocates with a track record of courtroom triumphs in federal and state courts and stand ready to achieve the best possible litigation outcome for our clients. Our lawyers appreciate that litigation can put a strain on a client’s human and financial resources. We work closely with our clients to develop case strategies and solutions that fit each client’s needs and objectives. Because a trial to judgment in federal or state court may not be the best solution to a business dispute, our lawyers are adept negotiators with extensive experience with mediation, arbitration and other alternative dispute resolution processes. Clients such as publicly traded corporations, privately-held entities, early- stage entrepreneurial ventures, not-for-profit organizations and individuals rely on our strategic thinking and creative problem-solving to resolve their disputes quickly, effectively and efficiently. Rutan’s CORPORATE, SECURITIES, TAX and INTELLECTUAL PROPERTY lawyers provide a wide array of transactional legal services to public and private companies, including public and private offerings of securities, tender offers, going-private transactions, preparation and review of periodic reports filed with the Securities and Exchange Commission, representation in mergers and acquisitions, corporate finance transactions, tax planning and intellectual property matters. Our clients are included in a broad range of industries, including technology, information services, manufacturing and construction. We often act as general counsel, assisting our clients with business formation, business financing, strategic relationships, corporate partnering, corporate governance, cross-border transactions and intellectual property protection, including disputes relating to all aspects of intellectual property infringement and ownership. Rutan’s EMPLOYMENT AND LABOR lawyers represent private sector employers (both public and privately-held companies) in a wide variety of employment and labor law matters. Our areas of specialization include litigation in state and federal courts (e.g., defense of discrimination, wrongful termination, and wage-hour claims), alternative dispute resolution (mediation or arbitration), defense of employment class actions, litigation of trade secret and unfair competition disputes, representation of employers before state and federal administrative agencies, and investigations, counseling, human resources policy review and development, and compliance audits, with an emphasis on the unique challenges of complying with California law. We also handle “traditional” labor law matters such as union organizing, unfair labor practice claims, grievances and arbitrations, and collective bargaining. Rutan’s GOVERNMENT & REGULATORY LAW lawyers represent public and private clients throughout the state, including a wide variety of transactional and litigation practice areas: land use, CEQA/NEPA, natural resources, eminent domain/inverse condemnation, endangered species, solid waste and recycling, toxic substances, governmental relations, public contracts, labor law, education, municipal finance, elections, water law, and storm water regulation. We represent scores of public agencies. Our public agency clients include cities, school and community college districts, water districts, public finance authorities, community service districts, counties, and other local governmental entities. We have a robust practice representing private land owners, businesses, and developers in dealings with public agencies (local, state & federal) throughout California. As a result of Rutan’s unrivaled expertise, we are at the forefront of evolving legal developments and are adept at handling complex problems. Rutan’s REAL ESTATE lawyers analyze all aspects of a potential transaction, from assessing alternative strategies and deal structures, to negotiating and drafting all required documents. We handle the sale and disposition of real property transactions across the entire nation. Whatever the opportunity or challenge, the depth and breadth of real estate experience allows us to evaluate all aspects of a real estate transaction in a broad range of industries. When your real estate interests intersect with our other practices areas, we leverage the expertise of our lawyers to more efficiently achieve your objectives. We can provide tax, affordable housing, environmental, land use, governmental regulation and litigation advice to enhance your real estate investments. OUR COMMITMENT TO DIVERSITY IS INSEPARABLE FROM OUR COMMITMENT TO EXCELLENCE Rutan & Tucker recruits, retains and promotes talented professionals from a variety of backgrounds and skill sets, resulting in a culture that thrives on a variety of perspectives. Diversity is a valued and important part of our culture and our community. Our work environment is characterized by respect for others, encouragement for all to excel and equal opportunity for everyone. Recognizing the significant benefits and value of a diverse work force, Rutan & Tucker is committed to increasing the diversity of our law firm in a manner that promotes the firm’s core values of excellence, teamwork, and integrity. As the largest full-service law firm based in Orange County, California, Rutan has played an active role in the County’s maturation into a world-class metropolitan area that reflects the richness of California’s cultural diversity. We strive to achieve that same result within our law firm, acknowledging that diversity benefits our firm, our clients, and our community. Diversity at Rutan means more than a guarantee of equal opportunity in hiring, compensation, promotion and career development. Rutan’s commitment to diversity is a permanent and ongoing part of firm management, as embodied in Rutan’s Recruiting and Diversity Committees. Our Recruiting Committee’s efforts to bring outstanding new lawyers of varied backgrounds to Rutan have resulted in new associate classes consisting of more than 50 percent women and 33 percent persons of color over the past five years. RUTAN & TUCKER Diversity Commitment The Diversity Committee’s primary task is to assist in retaining and promoting women attorneys and associates of all cultures, backgrounds, and lifestyles who might face particular challenges in a traditional law firm environment. We are pleased that a growing number of Rutan’s partners are women and minorities. The firm and its Diversity Committee promotes mentorship, and senior attorneys conduct small group meetings with associates to encourage open dialogue on issues of concern. The Diversity Committee also encourages participation in wide-ranging activities that promote diversity outside of the firm, such as those sponsored by the Orange County Diversity Task Force (of which Rutan is a founding member) and minority bar associations. OUR PHILANTHROPY Improving the lives of others in our community is just the right thing to do. Given our exceptional talent, Rutan & Tucker is proud to set the standard for community involvement. We perform pro bono legal work through foundations Rutan is involved with, and we support more than 200 charitable programs and philanthropic efforts throughout Orange County and California, including, in part: Anti-Defamation League | Big Brothers Big Sisters | Boys & Girls Club | California Historical Group | Camp Fire USA | Casa Youth Shelter | Chapman University | Children’s Hospital of Orange County | Constitutional Rights Foundation | Court Appointed Special Advocates | Community In Schools (CIS) | Downs Syndrome Association | Fair Housing Council | Girls Inc. | Goodwill Industries | Housing with Heart | Jamboree Housing Corporation | Legal Aid Society | Mariposa Women’s & Family Center | Olive Crest | One OC | Orange County Bar Foundation | Orange County Business Council | Orange County Children’s Therapeutic Arts Center | Segerstrom Center For The Arts | Public Law Center | Raise Foundation | Second Harvest Food Bank | Share Our Selves | Smart Foundation | Special Olympics | St. Joseph’s Hospital Foundation | Susan G. Komen Breast Cancer Foundation | U.S. Adaptive Recreation Center | We Give Thanks | Wyland Foundation TEAMWORKRRES LTSUINTEGRITYTANALYSISAUNCOMMONN RUTAN.com ORANGE COUNTY611 Anton Boulevard, Suite 1400, Costa Mesa, CA 92626 P 714.641.5100 F 714.546.9035 PALO ALTOFive Palo Alto Square, 3000 El Camino Real, Suite 200, Palo Alto, CA 94306-9814 P 650 320 1500 F 650 320 9905 Firm Overview Rutan & Tucker's highly strategic, forward thinking approach to individual cases and client needs has been the hallmark of the firm since A.W. Rutan opened his first law office in 1906. Rutan & Tucker has enjoyed a leading role in shaping Orange County and California businesses and communities, today standing as the largest full-service business law firm based in Orange County. With approximately 141 attorneys in Orange County and 9 in Palo Alto, Rutan & Tucker is well-positioned to meet the legal needs of a broad range of clients doing business in California and beyond. Rutan & Tucker represents a broad spectrum of clients, from major multinational corporations and financial institutions to family-owned businesses and private individuals; from high-technology and industrial enterprises to agricultural firms; from real estate developers to governmental agencies, educational institutions, and charities. The firm's practice extends throughout the United States and includes both the representation of foreign companies doing business in the United States and domestic companies engaged in activities abroad. Our attorneys come from more than thirty law schools nationwide. Many graduated Order of the Coif or Phi Beta Kappa, were the editors of law reviews or held judicial clerkships. The accomplishments of our attorneys reflect the quality of Rutan & Tucker. The firm has provided a president and two members of the board of governors of the California State Bar and six presidents of the Orange County Bar Association. Some of the firm's attorneys teach professional education courses or law school classes. Many hold significant positions in trade, charitable and civic organizations. The firm's tradition is one of fresh, strategic thinking and going forward, we will continue to make history with a continued commitment to excellence and new thinking for many decades to come. RELATED NEWS 2/2/2011 Rutan & Tucker, LLP Employment And Labor Law Seminar Draws Crowd 1/20/2011 Nineteen Rutan &Tucker Partners Named “Southern California Super Lawyers”for 2011 1/3/2011 'Waiting for Superman' Panel Sponsored By Rutan & Tucker, LLP 12/22/10 Karen Walter of Rutan & Tucker LLP Helps Coach El Dorado High School Mock Trial Team to VIctory 10/1/2010 Nine Partners At Rutan & Tucker, LLP Named To 2011 List Of Best Lawyers 11/23/2010 Anti-Defamation League Names John Hurlbut of Rutan & Tucker, LLP, a 2010 Jurisprudence Prize Winner 5/1/2010 Heather Herd Of Rutan & Tucker, LLP Interviewed On KOCE’s Real Orange News Program 10/27/2010 Jeffrey Hill, General Counsel of California Bank & Trust, Wins Los Angeles Business Journal's General Counsel Award 3/25/2008 Nine Rutan &Tucker Partners Named to “Super Lawyers”Corporate Counsel Edition 4/5/2010 Partner Penelope Parmes Of Rutan & Tucker, LLP Honored By The Orange County Bankruptcy Forum 2/2/2011 Rutan & Tucker, LLP Employment And Labor Law Seminar Draws Crowd 1/20/2011 Nineteen Rutan &Tucker Partners Named “Southern California Super Lawyers”for 2011 1/3/2011 'Waiting for Superman' Panel Sponsored By Rutan & Tucker, LLP 12/22/10 Karen Walter of Rutan & Tucker LLP Helps Coach El Dorado High School Mock Trial Team to VIctory 10/1/2010 Nine Partners At Rutan & Tucker, LLP Named To 2011 List Of Best Lawyers 11/23/2010 Anti-Defamation League Names John Hurlbut of Rutan & Tucker, LLP, a 2010 Jurisprudence Prize Winner 5/1/2010 Heather Herd Of Rutan & Tucker, LLP Interviewed On KOCE’s Real Orange News Program 10/27/2010 Jeffrey Hill, General Counsel of California Bank & Trust, Wins Los Angeles Business Journal's General Counsel Award 3/25/2008 Nine Rutan &Tucker Partners Named to “Super Lawyers”Corporate Counsel Edition 4/5/2010 Partner Penelope Parmes Of Rutan & Tucker, LLP Honored By The Orange County Bankruptcy Forum A Professional Law Corporation www.lcwlegal.com Firm Resume Employment Law | Labor Relations | Education Law | Management Training  FIRM RESUME With offices in Los Angeles, San Francisco, Fresno, and San Diego, Liebert Cassidy Whitmore provides services for a majority of California’s public agencies, including special districts. The Firm is a full service employment, and labor relations law firm providing consultation, representation, litigation, negotiation and investigation services to public agency management, as well as legal advice on a variety of business, construction, and facilities issues. In addition, the Firm produces a wide-range of dynamic management training workshops and seminars in employment and labor relations issues to special districts, cities, counties, courts, schools, and community college districts. Negotiation Services Members of Liebert Cassidy Whitmore have successfully negotiated thousands of labor agreements for special districts, cities, counties, and school and college districts. The agreements negotiated on behalf of public employers, depending upon the particular philosophy and circumstances of a given agency, have run the gamut from brief understandings limited to benefit items to comprehensive labor agreements that define substantially all terms of employment. These comprehensive MOU’s, through management rights, waivers and “zipper” type clauses, provide protection to management’s ability to manage the agency. Members of the firm are experienced in collaborative/interest based bargaining techniques as well as the more traditional labor negotiations approach. In addition to conducting negotiations for public employers, we continually work with public agencies that employ staff personnel to do their own negotiations. This arrangement has involved all aspects of consultation and related services, including writing initial bargaining proposals, reviewing counter-proposals, providing training and advice concerning negotiating strategies, and giving general advice when particular problems arise. Negotiating Impasses Services provided by members of the firm have included direct participation, as well as general consultation in hundreds of mediation, fact-finding and arbitration proceedings. Strikes We have worked with many public sector clients in contingency planning for job actions and in assisting them in strike-related activities. A firm partner co-authored the “Management Strike Handbook” published by the International Personnel Management Association. FIRM RESUME Contract Administration and Grievance Handling The firm has extensive experience in the area of grievance administration, ranging from giving advice at the administrative levels of the grievance process through litigating arbitration cases. Public Employment Relations Board Representation Members of the firm have had many years of experience representing our clients in all phases of PERB proceedings, from consultation and responses to Unfair Labor Practice claims through PERB hearings and court appeals. A firm partner served as counsel to the PERB Board's first Chairperson as well as serving as a PERB Administrative Law Judge. Another firm partner served as a representative of the League of California Cities and the California Association of Counties in the legislative and administrative proceedings in connection with the PERB assuming jurisdiction over local agency employment relations. Our Approach to Negotiations We work with and for the chief administrative official and his/her designated staff, and through him/her with the Governing Body. We provide professional advice to assist the agency in determining its policy goals and objectives, which then become our goals and objectives; we see our job as applying our best efforts and skills to achieving them. We believe in carefully organizing for negotiations, with goals and objectives kept well in mind. The negotiating process, we believe, consists of definable stages, from preparatory activities to the preliminary bargaining phases, “hard bargaining,” and finally to agreement, impasse procedure, or work action. Each stage of the process requires an organized approach in order to maximize the chances of attaining bargaining objectives. Our philosophy is not one of “union busting,” but rather one of using a professional approach that seeks to achieve and maintain professional relationships, notwithstanding the adversarial aspects of the process. We call to the attention of our clients that in return for agreeing to competitive benefit adjustments, it is reasonable for them to seek to contractually protect and maximize their management discretion to set standards of service and retain the prerogative to direct, assign, and stimulate employees to meet them. We see the conclusion of negotiations as the beginning for establishing a constructive employer-employee organization-employee relations structure, which requires management training and ongoing involvement with agency management on our part. FIRM RESUME While one member of the firm handles a particular negotiating unit, at least one other designated attorney will be kept advised so that at all times the client has access to an attorney who is familiar with the status of the situation in each bargaining unit. Local Agency Employment Law Services We have worked closely with city attorneys, county counsels and general counsels, and have directly handled the representation for our local agency clients in literally hundreds of legal proceedings before civil service and personnel boards, arbitrators, the Public Employment Relations Board (PERB), state and federal EEO and other administrative agencies and the courts. These proceedings have covered the full spectrum of employer-employee relations matters, including such matters as civil service appeals, recognition and unit representation matters, unfair labor practice charges and related negotiating issues, employment discrimination matters, pension and disability issues, wrongful termination and Fair Labor Standards Act claims. Investigations Practice Group The firm’s Investigation Practice Group specializes in investigating allegations of discrimination, harassment and other misconduct. Our investigative practice primarily serves private sector employers and public sector agencies that are not already firm clients. However, we also represent current clients on a case-by-case basis depending upon the specific facts and allegations at issue. We continue to publish articles and present workshops on the topic of investigations. Our workshops identify the key components of a successful investigation including how and when to begin an investigation, who should conduct the investigation, how to maintain confidentiality, how to organize and execute an effective investigation, and how to evaluate the facts and take corrective action once the investigation is completed. Audit Services By virtue of the public agency background of members of the firm, we have extensive experience in developing local agency Employer-Employee Relations Resolutions/ Ordinances and personnel policies and procedures. A firm partner developed the League of California Cities Sample Employer-Employee Relations and Personnel Policies and Procedures Ordinances. The firm does extensive work in reviewing agency civil service/personnel policies and rules to assure continuing consistency with the ever- changing dictates of EEO and affirmative action, labor relations and other laws and administrative regulations. Members of the firm conduct comprehensive audits regarding agency’s compliance with the Fair Labor Standards Act (FLSA). Additionally, the firm publishes a comprehensive guide, “Fair Labor Standards Act: A Public Sector Compliance Guide,” that serves as a reference to agencies across the country. FIRM RESUME To learn more about the FLSA Audits, log onto www.FLSAaudit.com where you can find detailed information about what an FLSA audit entails. Contracts, Construction and Facilities We represent and advise special districts on a broad spectrum of issues in business and facilities, both transactional and litigation. Our services include the following:  Pre-bid issues, Bid Protest and Procedures, Subcontractor Substitution Issues  Competitive Bidding and Contract Award Issues  Project Delivery Methods, Architect Agreements, CM/PM Agreements  Course of Construction Issues, Stop Payment Notices, Takeover Agreements  Construction Litigation, Change Orders, Delay Claims  Other Construction Issues, Labor Compliance Programs and Prevailing Wage  Real Property and Eminent Domain, CEQA and Green Building Issues  Non-Construction Contract Review, Purchasing Issues, Surplus Property Distribution Public Safety Representation On a daily basis, LCW provides advice, consul and representation to fire safety and law enforcement management and their respective executives in a variety of issues that impact professional public safety administrators. A number of LCW attorneys have had the privilege of representing public safety professionals for more than 30 years. Having proudly earned the trust and respect of several generations of public safety professionals, LCW accommodates the emergency nature of public safety related employee relations by being readily accessible to assist in addressing issues of administrative leave, administrative/criminal investigations, and investigative methodology and strategic planning. With its immense public safety related experience, LCW brings both legal acumen and practical knowledge to its client interactions. Disciplinary Investigations Our attorneys are experts in both the Firefighters and Public Safety Officers Procedural Bill of Rights and are always available to provide timely advice to your investigators. We routinely review investigations in order to assess the strengths and weaknesses of investigations and any discipline which may result. Our lawyers have obtained important appellate court victories including the following cases: Upland Police Officers Association v. City of Upland (2003) 111 Cal.App.4th 1294; Gilbert v. Sunnyvale (2005) 130 Cal.App.4th 1264; Steinert v. Covina (2006) 146 Cal.App.4th 458; Benach v. County of Los Angeles (2007) 149 Cal.4th 836; and Los Angeles Deputy Sheriffs v. County of Los Angeles, Los Angeles County Sheriff’s Department et al (2008) 166 Cal.App.4th 1625. FIRM RESUME We continue to publish articles and present workshops on the topic of internal affairs/disciplinary investigations. Our workshops identify the key components of a successful investigation including how and when to begin an investigation, who should conduct the investigation, how to maintain confidentiality, how to organize and execute an effective investigation, and how to evaluate the facts and take corrective action once the investigation is completed. Disciplinary Hearings Every disciplinary case is serious, but those which occur in the public safety context are not only serious but also complicated by the special protections afforded to public safety personnel by laws including the Firefighters and Public Safety Officers Procedural Bill of Rights Acts. Our lawyers have successfully handled hundreds of disciplinary cases over the years. Retirement Practice The firm provides advice and counsel to public agencies regarding the laws and regulations of public employee retirement plans, including PERS, the County 1937 Retirement Act, and local agency retirement laws, as well as on retiree health insurance issues. The firm defends public agencies that are sued regarding retirement issues, defends public agencies and their employees and retired employees in retirement in cases where PERS acts to reduce benefits, and represents public agencies in disability and industrial disability retirement appeals. The firm helps agencies defend against PERS and other retirement board audits and, where necessary, files administrative appeals to challenge any negative audit findings. Members of the firm advise on all issues related to PERS, 1937 Act and STRS benefits. For example, we provide advice and counsel to clients regarding retirement formulas, the rules on reportable compensation, PERS and 37 Act contract amendments, disability retirement procedures and obligations, service credit, GASB issues, unfunded liabilities, retiree health benefits, vested rights and elected official benefits. Retirement issues have major impacts on agency labor relations. The firm provides strategy and guidance during negotiations in regards to retirement benefits, including acting as chief negotiator. We review agency policies and collective bargaining agreements/memoranda of understanding to ensure that they comply with applicable law. We represent agencies in retirement related administrative appeals and litigation, and have assisted agencies defend claims of underfunding as well as fiduciary obligations. FIRM RESUME Litigation Services Liebert Cassidy Whitmore attorneys strive to prevent employment or other disputes before they arise through education, training, audits, advice, planning, and cooperative employer-employee relations. When employment or other disputes do arise, our defense efforts are designed to meet each client’s particular needs, goals, and budget. We specialize in representing public agencies in the defense of legal actions and enjoy the reputation of a results-oriented, successful litigation firm. We are experts in all phases of litigation in both federal and state courts: pleading, discovery, motion practice, alternative dispute resolution, settlement and trial. Our particular expertise is the defense of public agencies in actions brought by employees, former employees, applicants or other individuals alleging employment related claims such as violations of the California Fair Employment and Housing Act; Federal Civil Rights Acts (e.g., section 1981 and 1983 claims); Americans with Disabilities Act; Age Discrimination in Employment Act; Fair Labor Standards Act; Meyers-Milias-Brown Act; Family and Medical Care Leave Acts; wrongful termination; and violation of state and/or federal constitutional rights such as due process, First Amendment and privacy rights. The firm’s attorneys have handled a number of cases that have culminated in jury trials resulting in defense verdicts. These cases included claims for violation of constitutional rights; violation of the Age Discrimination in Employment Act; violation of the disability provisions contained in the Fair Employment and Housing Act; reverse discrimination; sex discrimination; sexual harassment; national origin discrimination; age discrimination; intentional infliction of emotional distress and retaliation claims under both state and federal laws. Our expertise also includes defending and prosecuting claims on behalf of public entities related to business, contract and property issues and construction projects and practices, including contract disputes, delay claims, assessment of liquidated damages, stop payment notice claims, subcontractor substitutions, boundary disputes, and many other construction and business related claims. Consulting and Training Services One of the firm’s greatest sources of accomplishment comes from its record of success in counseling and advising its clients on the best ways to avoid becoming a party to adversary proceedings. We were “pioneers” in the training field by creating “consortiums” of agencies. The thirty-two Employment Relations Consortiums (ERCs) are comprised of over 500 special districts, cities, counties, schools, and community college districts as well as other public sector agencies. FIRM RESUME As part of our ERC services, we provide ongoing training on current developments in labor relations and personnel law on subjects including negotiation strategies; performance evaluations; disciplinary actions; employment discrimination, including harassment and ADA issues; Family and Medical Care Leave Acts; violence in the workplace; effective supervision; grievance administration; law enforcement issues and special workshops for governing board members. Experience over the years confirms that not only have the member agencies found the consulting and training services helpful, but an invaluable opportunity for the exchange of ideas and information between agency management. The firm provides individual training services to public agencies on a half-day or full-day basis. We customize these training programs to the precise needs of the client. Members of the firm make presentations on employment relations law issues to a variety of professional organizations including: Association of California Water Agencies Association of Chief Business Officials California Association of Joint Powers Authorities California County Counsels Association California Fire District Association California Law Enforcement Association of Records Supervisors California Municipal Finance Officers California Peace Officers Standards and Training (POST) Academy California Police Chiefs Association California Public Employer Labor Relations Association California Sanitation Risk Management Authority California Special Districts Association California State Bar Labor and Employment Law Section California State Sheriffs Association Fire Districts Association of California International Personnel Management Association League of California Cities 6033 West Century Blvd. 5th Floor Los Angeles, CA 90045 tel: 310.981.2000 fax: 310.337.0837 153 Townsend St. Suite 520 San Francisco, CA 94107 tel: 415.512.3000 fax: 415.856.0306 5250 North Palm Ave. Suite 310 Fresno, CA 93704 tel: 559.256.7800 fax: 559.449.4535 550 West “C” Street Suite 620 San Diego, CA 92101 tel: 619.481.5900 fax: 619.446.0015 Page 1 of 3 STEERING COMMITTEE Meeting Date 11/28/18 To Bd. of Dir. 11/28/18 AGENDA REPORT Item Number 5 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Celia Chandler, Director of Human Resources SUBJECT: POSITION CHANGE FOR FY 2018-19 AND 2019-20 GENERAL MANAGER'S RECOMMENDATION Approve an upgrade of the vacant Director of Finance & Administrative Services (Salary Grade EM25) position to Director of Engineering (Salary Grade EM27). BACKGROUND In January 2018, the Board approved creating a second Assistant General Manager positiong with responsibility for the Operations and Maintenance (O&M) and Engineering Departments. With two Assistant General Managers in place, one Executive Management Team (EMT) position, Director of Finance and Administrative Services, was held vacant. In anticipation of the retirement of Director of Operations & Maintenance (O&M), Ed Torres in January 2019, Staff has further evaluated the Orange County Sanitation District’s (Sanitation District) organization and identified opportunities to optimize the current management structure. RELEVANT STANDARDS • Plan for and execute succession, minimizing vacant position times PROBLEM The Director of O&M will retire in January 2019, creating a Director of O&M vacancy that needs to be filled in a timely manner. PROPOSED SOLUTION Backfill the vacant Director of O&M position by assigning those responsibilities to the Assistant General Manager of O&M and Engineering, Rob Thompson. Reclassify the vacant Director of Finance and Administrative Services position to Director of Engineering. Recruit and fill the Director of Engineering position and continue to hold one EMT position (Director of O&M) vacant. Page 2 of 3 TIMING CONCERNS Staff recommends approval of the position change so that the Director of Engineering recruitment can begin now to allow time to fully transition job duties and responsibilities and achieve greater efficiencies. RAMIFICATIONS OF NOT ACTING The Director of Engineering provides leadership and guidance to staff tasked with planning and delivering complex engineering projects. Without continuity of leadership, the program could experience costly delays or other problems. PRIOR COMMITTEE/BOARD ACTIONS January 2018 - Board approved creating a second Assistant General Manager position with responsibility for the Operations and Maintenance (O&M) and Engineering Departments; and appoint one of the existing department heads to assume these additional responsibilities, while maintaining their current responsibilities; and, upon the retirement of the existing Assistant General Manager (Bob Ghirelli), appoint one of the existing department heads to that position, overseeing the Finance & Administrative Services and Environmental Services departments. The resulting department head vacancy will remain unfilled. ADDITIONAL INFORMATION In January 2018, the Board approved changing the organizational structure to create a new Assistant General Manager position to align the O&M and Engineering Departments and provide for succession management while supporting our focus on resource recovery, rehabilitation, and operational resiliency. One EMT position (Director of Finance) was held vacant and the Director of Engineering position was assumed by the new the Assistant General Manager. Staff has further evaluated Sanitation District’s organizational structure, in anticipation of the retirement of Director of Operations & Maintenance Ed Torres in January 2019; and identified opportunities to optimize the management structure to realize greater efficiencies. One of the immediate needs is to backfill the Director of O&M position. This need can be achieved through internal movement. The Assistant General Manager of O&M and Engineering can assume the role of Director of O&M. The Assistant General Manager would relinquish the role of Director of Engineering. The Sanitation District would recruit for a Director of Engineering rather than Director of O&M. Since the currently vacant EMT position is Director of Finance and Administrative Services, which is at a different pay grade than the Director of Engineering, Staff is recommending upgrading the vacancy to authorize and expedite recruitment for the Director of Engineering. Page 3 of 3 FINANCIAL CONSIDERATIONS The recommended pay grade change represents a potential increased salary cost of $11,754 per year. The estimated salary savings from holding the Director of O&M position vacant is $200,000 per year. ATTACHMENT The following attachment(s) are included in hared copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Abridged Classification and Compensation Plan – Executive Management Group, 7/6/18 Orange County Sanitation District Classification and Compensation Plan Rates Effective July 6, 2018 Classification Pay Grade Step 1 Step 2 Step 3 Step 4 Step 5 Director of Engineering EM27 199,817$ 210,035$ 220,776$ 232,067$ 243,935$ Director of Operations and Maintenance EM26 194,943$ 204,912$ 215,392$ 226,407$ 237,985$ Director of Finance and Administrative Services EM25 190,188$ 199,914$ 210,138$ 220,885$ 232,181$ EXECUTIVE MANAGEMENT GROUP 7/6/18 Page 1 of 3 1BSTEERING COMMITTEE Meeting Date 11/28/18 To Bd. of Dir. 11/28/18 0BAGENDA REPORT Item Number 6 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: STRATEGIC PLAN UPDATE GENERAL MANAGER'S RECOMMENDATION A. Approve the Strategic Plan 2018-2019 Update; and B. Direct staff to implement the goals and levels of service contained in the Plan. BACKGROUND In November 2013, the Board of Directors adopted a Five-Year Strategic Plan. Each year, the Orange County Sanitation District (Sanitation District) reviews and updates the Strategic Plan to make necessary changes. In April 2017, the Sanitation District retained the firm of BHI Management Consulting to conduct a series of one-on-one confidential interviews with interested Board Members. In July 2017, the consultant led an employee workshop and in August 2017, took part in the Executive Management Team’s annual planning meeting to assist in the preparation of the 2017 Strategic Plan Update. The 2017 Strategic Plan Update concluded that the Sanitation District had completed all but one of the Strategic Goals listed in the Five-Year Strategic Plan. The one outstanding Goal is a continuous goal. During the 2018 Strategic Plan review and update, the Assistant General Managers met and reviewed the recommendations from the consultant’s 2017 report. The report included information received from the Board of Directors and employee workshop organized into potential Strategic Goals and Initiatives for the Sanitation District. Upon reviewing the report, the Assistant General Managers developed new initiatives which align with the Sanitation District’s Strategic Goals. These new Strategic Initiatives were shared with the Departments and presented to the full Executive Management Team at their annual planning meeting in August 2018. The attached document reflects the Strategic Goals and Initiatives that are being proposed for the 2018 Strategic Plan Update. The section below includes references to the minor edits that were made to three initiatives since the draft of the Strategic Plan was presented to the Steering Committee last month. Initiative 1.2: Resource Recovery – Develop Food Waste Receiving Program and Implement Plan by 2021 and complete construction of the Food Waste Receiving Station by 2022. Page 2 of 3 Initiative 1.3: Air Emissions Permit Evaluations – Develop an implementation strategy to review the Clean Air Act Title V Permits at both plants by 2022. Initiative 4.1: Digital Workplace – Complete the next phase of implementing a more efficient digital workplace by employing a trusted system for maintaining all electronic records created or stored as an official record by 2022. A trusted system will allow us to reduce paper storage space and improve the speed and efficiency of processing documents with faster access based on electronic versions of documents. RELEVANT STANDARDS • Strategic Plan PROBLEM The Five-Year Strategic Plan followed a five-year development cycle with annual updates and was not in alignment with the Sanitation District’s two-year budgeting process. With the Sanitation District entering a period of continuous maintenance and technology improvements, a new Strategic Plan format is more appropriate. PROPOSED SOLUTION The proposed Strategic Plan includes Strategic Goals that are broad policy statements with smaller, more achievable supporting initiatives that move toward achieving the strategic goals. The new proposed Strategic Plan and strategic planning process will follow a two-year development cycle to support the two-year budgeting process and allow for the Strategic Plan to be updated and completed in the fall prior to the development of the two-year budget. TIMING CONCERNS The Strategic Plan is presented for approval in November 2018 to coordinate with the annual budget update which begins in January 2019. RAMIFICATIONS OF NOT TAKING ACTION There may be a lack of clarity and alignment between the Board and staff regarding the priorities and goals of the Sanitation District. PRIOR COMMITTEE/BOARD ACTIONS November 2017 The Board of Directors approved the 2017 Strategic Plan Update. October 2017 A red-lined version of the Strategic Plan Update was received and reviewed by both the Administration and Operations Committees. October 2016 The Board of Directors received and filed the Strategic Plan Update. December 2015 The Board of Directors approved the Strategic Plan Update dated December 2015 and directed staff to implement the goals and levels of service contained in the Plan. Page 3 of 3 November 2015 The Steering Committee received a Summary of Strategic Plan Update Workshop. October 2015 The Board of Directors held a Special Meeting - 2015 Strategic Plan Update Board Workshop. November 2013 The Board of Directors adopted the 2014-2019 Five-Year Strategic Plan. Sept/Oct. 2013 The Board of Directors held a Special Meeting 2013 Strategic Plan Workshop. ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Strategic Plan 2018-2019 Update STRATEGICPLAN 2018 - 2019 UPDATE Orange County Sanitation District MESSAGE FROM THE GENERAL MANAGER In November 2013, the Orange County Sanitation District (Sanitation District) adopted a five-year Strategic Plan that envisioned an organizational culture that adheres to our core values and makes efficient and effective use of all available resources. I am pleased to report that upon completion of the five-year period, the Strategic Goals we had set out to accomplish were completed. As a mature utility with more than $10 billion in assets, the Sanitation District is stepping into a unique period that will bring continuous maintenance and technology improvements. This new Strategic Plan includes complex goals and initiatives that will take many years to accomplish. The new Strategic Plan proposes a rolling two-year development cycle with biennial updates, instead of annual updates, to support the two-year budgeting process. The Strategic initiatives included in this Strategic Plan center on Environmental Stewardship, Organizational Effectiveness, Operational Optimization and Sustainability. We look forward to achieving the goals outlined in this Strategic Plan through the hard work of our dedicated workforce and the commitment and support of our Board of Directors and the public we serve. Under the direction of the Board of Directors, I am honored to be leading this effort and I look forward to working together to accomplish our goals in the years ahead and continuing our successes. Respectfully submitted, James D. Herberg, General Manager ORGANIZATIONAL EFFECTIVENESS — This goal is part of the Sanitation District’s commitment to creating a safe and productive workplace with the best workforce possible by providing opportunities for training and development. Initiative 2.1: Site Security — Develop and update physical site security design standards and cyber security controls based on industry guidance and best practice to ensure security controls are incorporated into future projects. ENVIRONMENTAL STEWARDSHIP — This goal is part of the Sanitation District’s commitment to protecting public health and the environment by utilizing practical and innovative means of recycling wastewater, energy, and solids to recover resources. Initiative 1.1: Water Supply Reliability — Support the final expansion of the Groundwater Replenishment System (GWRS) to maximize water recycling by delivering GWRS Final Expansion projects necessary to separate reclaimable and unreclaimable flows at Plant No. 2 no later than 2023. Initiative 1.2: Resource Recovery — Develop Food Waste Receiving Program and Implement Plan by 2021 and complete construction of the Food Waste Receiving Station by 2022. Initiative 1.3: Air Emissions Permit Evaluations — Develop an implementation strategy to review the Clean Air Act Title V Permits at both plants by 2022. Strategic Goal #2 Strategic Goal #1 OPERATIONAL OPTIMIZATION — This goal is part of the commitment to maintain the Sanitation District’s assets at the lowest life cycle cost by developing optimum asset maintenance and replacement strategies. Initiative 3.1: Asset Management Plan (AMP) — Create an annual AMP that documents the condition of facilities, plans short-term maintenance activities, and defines major refurbishment/ replacement project scope, schedule, and budget. Initiative 3.2: Staffing Assessment — Conduct an in-depth and comprehensive technical assessment of all current asset management strategies consisting of preventative maintenance, predictive maintenance, managed activities, and Job Plans associated with the maintenance of electrical, mechanical, and instrumentation assets. This effort will help with optimizing asset maintenance plans and schedules and will provide a more accurate picture of the staffing resources necessary to complete required maintenance tasks associated with the Sanitation District’s assets. SUSTAINABILITY — This initiative aligns with the Sanitation District’s dedication to continually seek efficiencies to protect public health and the environment. Initiative 4.1: Digital Workplace — Complete the next phase of implementing a more efficient digital workplace by employing a trusted system for maintaining all electronic records created or stored as an official record by 2022. A trusted system will allow us to reduce paper storage space and improve the speed and efficiency of processing documents with faster access based on electronic versions of documents. Initiative 4.2: Natural Disaster Resiliency — Develop a plan to assess the resiliency of the Sanitation District’s Collections System and Treatment Plants against natural disasters. Strategic Goal #4 Strategic Goal #3 STRATEGIC GOALS OUR MISSION “To protect public health and the environment by providing effective wastewater collection, treatment, and recycling.” VISIONORANGE COUNTY SANITATION DISTRICT WILL BE A LEADER IN: Providing reliable, responsive, and affordable services in line with customer needs and expectations. Protecting public health and the environment utilizing all practical and effective means for wastewater, energy, and solids resource recovery. Continually seeking efficiencies to ensure that the public’s money is wisely spent. Communicating our mission and strategies with those we serve and all other stakeholders. Partnering with others to benefit our customers, this region, and our industry. Creating the best possible workforce in terms of safety, productivity, customer service, and training. CORE VALUES Honesty, Trust and Respect We aspire to the highest degree of integrity, honesty, trust, and respect in our interaction with each other, our suppliers, our customers, and our community. Teamwork and Problem Solving We strive to reach OCSD goals through cooperative efforts and collaboration with each other and our constituencies. We work to solve problems in a creative, cost-effective, and safe manner, and we acknowledge team and individual efforts. Leadership and Commitment We lead by example, acknowledging the value of our resources and using them wisely and safely to achieve our objectives and goals. We are committed to act in the best interest of our employees, our organization, and our community. Learning/Teaching - Talents, Skills and Abilities We continuously develop ourselves, enhancing our talents, skills, and abilities, knowing that only through personal growth and development will we continue to progress as an agency and as individuals. Recognition/Rewards We seek to recognize, acknowledge, and reward contributions to OCSD by our many talented employees. 11/2018 1297912.1 555 AN T O N B O U L E V A R D, SU I T E 12 0 0 C O S T A ME S A , CA 9 2 6 26-7 6 70 (714) 558-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: November 20, 2018 RE: Closed Session Items The Steering Committee desires to hold a closed session on November 28, 2018 for the purpose of conferring with its legal counsel regarding anticipated litigation. Existing facts and circumstances reflect a significant exposure to litigation against the District. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(2). The facts and circumstances are as follows: The District received a claim from Richard Spencer, a former employee. The claim seeks damages for alleged denial of due process. Respectfully submitted, By: _________________________ Bradley R. Hogin, General Counsel ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS ACWA Association of California Water Agencies LAFCO Local Agency Formation Commission RWQCB Regional Water Quality Control Board APWA American Public Works Association LOS Level Of Service SARFPA Santa Ana River Flood Protection Agency AQMD Air Quality Management District MGD Million Gallons Per Day SARI Santa Ana River Interceptor ASCE American Society of Civil Engineers MOU Memorandum of Understanding SARWQCB Santa Ana Regional Water Quality Control Board BOD Biochemical Oxygen Demand NACWA National Association of Clean Water Agencies SAWPA Santa Ana Watershed Project Authority CARB California Air Resources Board NEPA National Environmental Policy Act SCADA Supervisory Control And Data Acquisition CASA California Association of Sanitation Agencies NGOs Non-Governmental Organizations SCAP Southern California Alliance of Publicly Owned Treatment Works CCTV Closed Circuit Television NPDES National Pollutant Discharge Elimination System SCAQMD South Coast Air Quality Management District CEQA California Environmental Quality Act NWRI National Water Research Institute SOCWA South Orange County Wastewater Authority CIP Capital Improvement Program O & M Operations & Maintenance SRF Clean Water State Revolving Fund CRWQCB California Regional Water Quality Control Board OCCOG Orange County Council of Governments SSMP Sewer System Management Plan CWA Clean Water Act OCHCA Orange County Health Care Agency SSO Sanitary Sewer Overflow CWEA California Water Environment Association OCSD Orange County Sanitation District SWRCB State Water Resources Control Board EIR Environmental Impact Report OCWD Orange County Water District TDS Total Dissolved Solids EMT Executive Management Team OOBS Ocean Outfall Booster Station TMDL Total Maximum Daily Load EPA US Environmental Protection Agency OSHA Occupational Safety and Health Administration TSS Total Suspended Solids FOG Fats, Oils, and Grease PCSA Professional Consultant/Construction Services Agreement WDR Waste Discharge Requirements gpd gallons per day PDSA Professional Design Services Agreement WEF Water Environment Federation GWRS Groundwater Replenishment System POTW Publicly Owned Treatment Works WERF Water Environment & Reuse Foundation ICS Incident Command System ppm parts per million WIFIA Water Infrastructure Finance and Innovation Act IERP Integrated Emergency Response Plan PSA Professional Services Agreement WIIN Water Infrastructure Improvements for the Nation Act JPA Joint Powers Authority RFP Request For Proposal WRDA Water Resources Development Act ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS – A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS – The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD) – The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. BIOGAS – A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. BIOSOLIDS – Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. CAPITAL IMPROVEMENT PROGRAM (CIP) – Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. COLIFORM BACTERIA – A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. COLLECTIONS SYSTEM – In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. CERTIFICATE OF PARTICIPATION (COP) – A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. CONTAMINANTS OF POTENTIAL CONCERN (CPC) – Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (D/T) – The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG) – In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming (“greenhouse effect”). GROUNDWATER REPLENISHMENT SYSTEM (GWRS) – A joint water reclamation project that proactively responds to Southern California’s current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply. LEVEL OF SERVICE (LOS) – Goals to support environmental and public expectations for performance. N-NITROSODIMETHYLAMINE (NDMA) – A N-nitrosamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. NATIONAL BIOSOLIDS PARTNERSHIP (NBP) – An alliance of the National Association of Clean Water Agencies and Water Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. PLUME – A visible or measurable concentration of discharge from a stationary source or fixed facility. PUBLICLY OWNED TREATMENT WORKS (POTW) – A municipal wastewater treatment plant. SANTA ANA RIVER INTERCEPTOR (SARI) LINE – A regional brine line designed to convey 30 million gallons per day of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. SANITARY SEWER – Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban runoff. SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD) – Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. SECONDARY TREATMENT – Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. SLUDGE – Untreated solid material created by the treatment of wastewater. TOTAL SUSPENDED SOLIDS (TSS) – The amount of solids floating and in suspension in wastewater. TRICKLING FILTER – A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. URBAN RUNOFF – Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. WASTEWATER – Any water that enters the sanitary sewer. WATERSHED – A land area from which water drains to a particular water body. The Orange County Sanitation District’s service area is in the Santa Ana River Watershed.