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HomeMy WebLinkAbout11-19-2014 Steering Committee Agenda Packet.pdf Orange County Sanitation District 0IP EUWINI, Wednesday, November 19, 2014 Regular Meeting of the SW ITATION DISTMa 5:30 P.M. Steering Committee 1 Administration Building Conference Rooms A& B 10844 Ellis Avenue I Fountain Valley, CA 92708 J (714) 593-7130 w54-2014 AGENDA DECLARATION OF QUORUM: PUBLIC COMMENTS: If you wish to speak, please complete a Speaker's Form and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: 1. Approve Minutes of the October 22, 2014 Steering Committee Meeting. NON-CONSENT CALENDAR: 2. Recommend to the Board of Directors to: Approve Board Resolution No. OCSD 14-15 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving salary increase and salary range adjustment for the General Manager for Fiscal Year 2014- 2015," approving a base building salary increase for the General Manager of 3% of salary and to adjust the corresponding salary range by 3%. 11/19/14 Steering Committee Agenda Page 1 of 4 3. Recommend to the Board of Directors to: A. Adopt Resolution No. OCSD 14-16 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving salary increases, salary range adjustments and onetime non-base building payment for at-will executive management team employees for Fiscal Year 2014-2015," authorizing the General Manager to implement a base building salary increase for Executive Management Team (EMT) members up to of 3% of salary, to adjust the corresponding salary ranges by 3%, and a one-time non-base building payment of up to $1,000 to Executive Management Team members at the discretion of the General Manager based on performance outcomes. B. Adopt Resolution No. OCSD 14-17 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving salary increases, salary range adjustments and onetime non-base building payment for unrepresented management employees for Fiscal Year 2014- 2015," authorizing the General Manager to implement salary range adjustments of up to 5.1% for specific manager classifications due to compaction with supervisor classifications, a base building salary increase for Managers of 3% of salary, and a one-time non-base building payment of up to $1,000 to Managers at the discretion of the General Manager and Department Head based on performance outcomes. 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) CONFER WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representatives: Steve Filarsky, James Ruth, James Herberg, Robert Ghirelli, Jeff Reed, and Richard Spencer. Employee Organizations: 3 11/19/14 Steering Committee Agenda Page 2 of 4 • International Union of Operating Engineers, Local 501; and • Orange County Employees Association (OCEA); and • Supervisors and Professionals Group; and CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: The next Steering Committee meeting is scheduled for Wednesday, December 17, 2014 at 5:30 p.m. 11/19/14 Steering Committee Agenda Page 3 of 4 Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Postina: In accordance with the requirements of 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, 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. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Maria E.Ayala Clerk of the Board (714)593-7130 mavalaaocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherbero/clocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rghirelliGDocsd.com Director of Engineering Rob Thompson (714)593-7310 rthomosonsiboad.com Director of Facility Support Services Nick Arhontes (714)593-7210 narhontesOoad.com Director of Finance and Lorenzo Tyner (714)593-7550 Itvnenfi)ocsd.com Administrative Services Director of Human Resources Jeff Reed (714)593-7144 ireed(&ocsd.com Director of Operations&Maintenance Ed Torres 714 593-7080 storres oad.com 11/19/14 Steering Committee Agenda Page 4 of 4 ITEM NO. 1 MINUTES STEERING COMMITTEE MEETING Orange County Sanitation District The Steering Committee meeting convened on Wednesday, October 22, 2014, at 5:33 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT Tom Beamish, Chair Jim Herberg, General Manager John Nielsen, Vice-Chair Bob Ghirelli, Assistant General Brett Murdock, Operations Committee Manager Chair Nick Arhontes, Director of Facilities Brad Reese, Administration Support Services Committee Chair Rob Thompson, Director of Scott Nelson, Member-At-Large Engineering John Withers, Member-At-Large Ed Torres, Director of Operations & Maintenance Lorenzo Tyner, Director of Finance & COMMITTEE MEMBERS ABSENT: Administrative Services Keith Curry, Member-At-Large Maria E. Ayala, Clerk of the Board Jennifer Cabral Al Garcia Rich Spencer OTHERS PRESENT: Brad Hogin, General Counsel PUBLIC COMMENTS: None. REPORTS: Chair Beamish reported on the following: • OCSD meeting with GWRS to discuss shared security costs. GWRS will be conducting a security assessment and once approved by their Board, will return to OCSD for further discussion. Minutes of the Steering Committee October 22,2014 Page 2 of 3 • La PA Committee met on Monday, October 20. The Committee agreed to have the District hold an RFP on lobbyist services. Chair Beamish and Vice- Chair Nielsen will oversee the process from an advisory perspective but will not be part of the scoring or part of the selection team. General Manager Herberg reported on the following: • Three presentations scheduled to take place at tonight's Board Meeting that include: the final two commendations to key partner agencies (Orange County Coastkeeper and the Surfrider Foundation); a presentation by Celeste Cantu and John Rossi on management of the SARI Line and future plans; and the presentation of the 'What Safety Means to Me Awards". • The Strategic Plan Update and General Manager's Workplan will be presented at next month's Operations and Administration Committee Meetings. This will be a status report of the current plan, with plans for adopting a new Strategic Plan next November. • The water environment federation conference was held in October. OCSD received two prestigious national awards: the 10-Year Platinum award on biosolids management and the Safety Award for the District's safety program. • Labor updates on all three units and unrepresented employees will be given at November Board and Steering meetings; there is nothing new to report tonight. • With reference to Chair Beamish's report on the joint security effort with the water district, Mr. Herberg agrees that a joint effort moving forward will be beneficial for the Sanitation District. • Will be requesting that the Chair adjourn tonight's Board Meeting in memory of former OCSD General Manager, Blake Anderson. Mr. Anderson recently passed away. CONSENT CALENDAR: 1. MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the September 24, 2014 Steering Committee Meeting. Beamish, Murdock, Nelson, Nielsen, Reese and AYES: Withers NOES: None Minutes of the Steering Committee October 22, 2014 Page 3 of 3 ABSTENTIONS: None ABSENT: Curry CLOSED SESSION CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS: 54957(b)(1) The Committee convened in closed session at 5:40 p.m. to discuss one item. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. RECONVENED IN REGULAR SESSION: The Committee reconvened in regular session at 5:43 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: The Chair declared the meeting adjourned at 5:43 p.m. Submitted by: Maria E. Ayala Clerk of the Board STEERING COMMITTEE Neelbng Dare TOBA.of Dlr. 1 /19/14 11/19/14 AGENDA REPORT IternNumber Item Numbe z Orange County Sanitation District FROM: Tom Beamish, Chair SUBJECT: GENERAL MANAGER SALARY ADJUSTMENT BOARD CHAIR'S RECOMMENDATION Approve Board Resolution No. OCSD 14-15 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving salary increase and salary range adjustment for the General Manager for Fiscal Year 2014-2015," approving a base building salary increase for the General Manager of 3% of salary and to adjust the corresponding salary range by 3%. SUMMARY The Board Chair is recommending a salary increase of 3% of salary for the General Manager to be applied as a base building salary increase to the rate of compensation for the General Manager and an adjustment of the corresponding salary range by 3%. The salary change would take effect retroactively to July 11, 2014. The proposed 3% base building salary increase and salary range adjustment would move the General Manager market position from the W percentile to the 23rtl percentile for FY 2014-15. The General Managers' market position will be revisited through the current comprehensive classification and compensation study, which will provide the Board with data for consideration on an organization-wide structural alignment of its pay systems. The General Manager's current salary, proposed salary and percent difference compared to the 751b percentile are summarized in the attached table, as requested by the Board of Directors at the September meeting. PRIOR COMMITTEE/BOARD ACTIONS June 2014 — Steering Committee conducted the annual performance evaluation of the General Manager in closed session. February 2013 — Board approved appointment of James D. Herberg to the position of General Manager and approved the current compensation and benefits package, effective April 1, 2013. Page 1 of 2 ADDITIONAL INFORMATION The General Manager provides leadership, strategic direction, and organizational oversight at OCSD. This position serves as the chief executive officer. The position is integral and critical to the success of the agency. The 2014 annual market study revealed that the General Manager's salary is below the 75" percentile. Over the past three (3) years, General Manager's market position has remained at the 1g1" percentile since 2011. Without a salary increase and a corresponding salary range adjustment, the General Manager's market position is projected to reach the 2nd percentile in 2015. The attached chart illustrates this declining trend. The current At-Will Employment Agreement for General Manager James D. Herberg became effective April 1, 2013. The General Managers current base salary is $215,000 annually. Section 6 of the At-Will Employment Agreement specifies the following: "District's Steering Committee shall meet with General Manager in August of each year during the term of this Agreement to review and evaluate his performance over the prior year. The Steering Committee shall make its recommendation(s) to the Board concerning adjustment to the compensation and/or benefits paid or provided to General Manager, to be effective in July of the year of review. After consideration of the recommendation(s) of the Steering Committee, the Board shall determine and approve the compensation, including benefits, payable to General Manager, which generally becomes effective July of the fiscal year of the review." CECA N/A BUDGET/PURCHASING ORDINANCE COMPLIANCE There are sufficient funds within the District's operating budget to fund this increase. The proposed salary increases at a projected cost of$6,450 over this one-year period. ATTACHMENT The following attachment(s) maybe viewed on-line at the OCSD webslte (www.ocsd.com) with the complete agenda package: • Resolution OCSD 14-15 (General Manager) • General Manager Compensation Survey Summary 2014 • General Manager Market Position, 2011 to 2015 • General Manager Pay Tables, July 2013, Proposed July 2014 • At-Will Employment Agreement for General Manager James D. Herberg, effective 4/1/2013 Page 2 of 2 Return to Mende Report RESOLUTION NO. OCSD 14-15 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING SALARY INCREASE AND SALARY RANGE ADJUSTMENT FOR THE GENERAL MANAGER FOR FISCAL YEAR 2014-2015 WHEREAS, the General Manager provides organizational leadership, strategic direction, and District oversight for OCSD; and WHEREAS, the General Manager serves an at-will employment status, which may be terminated at any time by the Board with or without cause with no liability; and WHEREAS, salary adjustments for General Manager have not kept pace with those of the organization or the Consumer Price Index (CPI) over the past four (4) years; and WHEREAS, it is OCSD's philosophy to compensate employee classifications competitively, which currently can be achieved through alignment with the salary market; and WHEREAS, the General Manager's salary range has remained constant since 2009 in recognition of economic times; and WHEREAS, the April 1, 2013, At-Will Employment Agreement with the General Manager provides that, "District's Steering Committee shall meet with General Manager in August of each year during the term of this Agreement to review and evaluate his performance over the prior year. The Steering Committee shall make its recommendation(s) to the Board concerning adjustment to the compensation and/or benefits paid or provided to General Manager, to be effective in July of the year of review. After consideration of the recommendation(s) of the Steering Committee, the Board shall determine and approve the compensation, including benefits, payable to General Manager, which generally becomes effective July of the fiscal year of the review."; and WHEREAS, the Steering Committee commenced its review of the General Manager's performance in June 2014, finalized its review and made its recommendation to the Board on November 19, 2014. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: 1. That the Board of Directors hereby authorizes and approves the following changes to General Manager's salary, which shall become effective retroactively to the first pay period of July 2014: OCSD 14-15-1 1N"5o.t a. A base building salary increase for the General Manager of 3% of salary and to adjust the corresponding salary range by 3%. 2. That the Board Chair, or his designee, is authorized to implement the changes to salary range and salary approved herein. PASSED AND ADOPTED at a regular meeting of the Board of Directors held November 19, 2014. Tom Beamish, Chairman of the Board ATTEST: Maria E. Ayala Clerk of the Board OCSD 14-15-2 1N"5o.1 Return to Mende Report General Manager Compensation Survey Summary 2014 Incumbent Proposed Current Salary Not to 75th Salary Exceed Percentile d-32.7% Classification General Manager $ 215,000 $ 221,450 $ 285,264 Cost $ 6,450 General Manager Market Position 2011-2015 30.0 24.0 w 25.0 c � 20.0 19.0 19.0 `u 6f L 1q0 15.0 N 6 O � 10.0 5.0 2.0 0.0 -1 " -::: 2011 2012 2014 2015 Projected General Manager Pay Tables Return to Aaenda Report July 2013 and Proposed 2014 Orange County Sanitation District Classification and Compensation Plan Rates Effective July 1,2013 GENERAL MANAGER Classification Pay Grade Minimum I Midpoint Control Point Maximum General Manager EMT120 $ 171,447 $ 214,310 $ 231.455 S 257,172 Orange County Sanitation District Classification and Compensation Plan PROPOSED Rates Effective July 1,2014 GENERAL MANAGER Classification Pay Grade Minimum I Midpoint Control Point Maximum General Manager EMT120 $ 176,590 $ 220,739 $ 238,399 $ 264,887 AT-WILL EMPLOYMENT AGREEMENT James D. Herberg General Manager ORANGE COUNTY SANITATION DISTRICT THIS AT-WILL EMPLOYMENT AGREEMENT ("Agreement") is made and entered into, to be effective the 1 st day of April, 2013, by and between: ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "District"; AND JAMES D. HERBERG, sometimes hereinafter referred to as "General Manager". RECITALS WHEREAS, District desires to employ James D. Herberg ("Mr. Herberg"), as General Manager of District, pursuant to the terms and conditions as set forth in this Agreement; and WHEREAS, Mr. Herberg, by virtue of his education, training and experience, is fully qualified to fill the position of General Manager and desires to continue to serve the District as its General Manager, pursuant to the terms and conditions of this Agreement; and WHEREAS, per Resolution No. 13-02 adopted on February 27, 2013, the District's Board of Directors has approved and authorized the Board Chair to execute this "At-Will Employment Agreement"with Mr. Herberg for General Manager services. NOW, THEREFORE, the Parties hereto agree as follows: Section 1: District hereby employs Mr. Herberg to serve as General Manager of the 1 Return to Agenda Reporl Orange County Sanitation District, commencing on the effective date hereof, and continuing until termination by either Party, as provided in this Agreement. In that capacity, Mr. Herberg agrees to perform the functions and duties of General Manager, the administrative head of the District, as prescribed by the laws of the State of California, and by the rules, regulations, decisions, and directions of the Board of Directors of District (hereinafter referred to as "Board"). The General Manager's duties may involve expenditures of time in excess of the regularly established workday or in excess of a forty hour work week and may also include time outside normal office hours (including attendance at Board and Committee meetings). General Manager is classified as an exempt employee under the Fair Labor Standards Act ("FLSA") and shall not be entitled to any additional compensation for hours worked in excess of forty in a work week. Section 2: Mr. Herberg shall be employed in an "at-will" capacity serving at the sole pleasure of the Board. Either party to this Agreement may terminate the Agreement at any time for any reason with or without cause, and without hearing, upon 30 days' notice to the other party. Mr. Herberg is advised and acknowledges that he has none of the termination rights of a Regular employee of the District. Except as expressly provided herein, and as a condition of employment, Mr. Herberg knowingly, willingly and voluntarily gives up, waives, and disclaims any and all rights he may have, express or Implied, to any notice and/or hearing before or after termination, and/or to any continued employment with the District after termination. As an "at-will" employee, Mr. Herberg understands that he may be subject to termination with or without cause at the sole discretion of the Board, notwithstanding that the other provisions of the District's Personnel Policies and Procedures Manual (hereinafter referred to as "Manual") apply to Mr. Herberg. If employment should be terminated without cause, Mr. Herberg shall be given a thirty (30) day Notice of Termination and severance pay in an amount equal to six(6) months of his then current annual base salary. If the District terminates this Agreement (thereby terminating Mr. Herberg's employment) without cause, the severance pay is considered a cash settlement related to the termination of Mr. Herberg and shall therefore be fully reimbursed to the District by Mr. Herberg if Mr. Herberg is convicted of a crime involving an abuse of his office or position. Abuse of office or position shall have the meaning set forth in Government Code 53243.4, as may be amended, of either (1) an abuse of public authority, including, but not limited to, waste, fraud, and violation of the law under color of authority or (2) a crime against public justice, including, but, not limited to, a 2 crime described in Title 7 (commencing with Section 92 of Part 1 of the Penal Code). Mr. Herberg shall reimburse such severance pay to the District no later than six months after such conviction. If Mr. Herberg terminates his employment with 30 days' notice, the Board shall have the right to accept his resignation effective the date notice is given. Such decision to accept his resignation earlier shall not be considered a termination without cause and shall not entitle Mr. Herberg to receive the severance pay noted above. Section 3: The term of this Agreement shall commence on the effective date above and continue for an indefinite duration, until terminated by either Party pursuant to Section 2 above, or unless terminated or amended as provided herein. Section 4: As compensation for the services to be performed hereunder, upon the effective date, District agrees to pay General Manager an annual base salary for services rendered of Two Hundred Fifteen Thousand Dollars ($215,000), subject to all applicable deductions and withholdings of any and all sums required by then current state, federal or local law, along with deductions of applicable sums the General Manager is obligated to pay because of participation in plans and programs described in this Agreement, and paid biweekly in accordance with the District's established accounting and payroll practices at the same time and in the same manner as other employees of the District. No increase in salary may exceed the compensation permitted by the applicable salary range for the classification established by duly adopted Resolution of the Board. Section 5: For the period of this Agreement, District shall provide Mr. Herberg with a fixed benefit package that includes the following: • Personal Leave - 200 hours per fiscal year, earned on a biweekly fiscal year basis, which is eligible for annual cash out in accordance with the Manual. • Investment Incentive Salary (IIS) - 5% of base salary applied on a biweekly fiscal year basis. • Deferred Compensation - OCSD-paid annual allocation for 2013 of $5,000 allocated on a biweekly calendar year basis. Mr. Herberg's benefit package shall also Include benefits consistent with the Manual for: holiday pay; medical, dental, vision and life insurance; long-term and short-term disability insurance; and employee assistance program. Additionally, Mr. Herberg's benefit package shall include executive disability insurance benefits, consistent with those provided to OCSD 3 Retum to Aaenda Report managers. These benefits shall remain in full force and effect unless and until replaced by an amendment to this Agreement, signed by Mr. Herberg and approved by the Board, which amendment shall include the effective date thereof. Section 6: District's Steering Committee shall meet with General Manager in August of each year during the term of this Agreement to review and evaluate his performance over the prior year. The Steering Committee shall make its recommendation(s) to the Board concerning adjustment to the compensation and/or benefits paid or provided to General Manager, to be effective in July of the year of review. After consideration of the recommendation(s) of the Steering Committee, the Board shall determine and approve the compensation, including benefits, payable to General Manager, which generally becomes effective July of the fiscal year of the review. Failure of the District to review and evaluate the performance of the General Manager pursuant to this section shall not affect the right of the District to terminate the General Manager's employment and shall not be considered a breach of this Agreement. Section 7: Mr. Herberg shall be a Participant Member in the Orange County Employees Retirement System (°OCERS"). District shall pay the required employer's contribution, and 0% of Mr. Herberg's required contribution towards membership in OCERS. Section 8: District shall reimburse General Manager for all expenses paid by him and incurred for non-personal,job-related District business that are reasonably necessary to the General Manager's service to the District. The District agrees to either pay such expenses in advance or to reimburse the expenses, so long as the expenses are incurred and submitted according to the criteria established by District's budget and/or normal expense reimbursement procedures pursuant to applicable policy Resolutions. To be eligible for reimbursement, all expenses must be supported by documentation meeting the District's policies and requirements and must be submitted within time limits established by the District. Such reimbursement shall not be considered a benefit. Section 9: During the period of this Agreement, it is agreed that General Manager shall devote his full-time, skills, labor and attention to said employment. At no time may General Manager undertake outside activities consisting of consultant work, speaking engagements, writing, lecturing, or other similar professional activities for money or other consideration without prior approval of District's Steering Committee. However, the expenditure of reasonable 4 amounts of time for educational, charitable, or professional activities shall not be deemed a breach of this Agreement if those activities do not conflict or materially interfere with the services required under this Agreement, and shall not require the prior written consent of the Steering Committee. This Agreement shall not be interpreted to prohibit General Manager from making passive personal investments or conducting private business affairs, provided those activities are not deemed to be a conflict of interest by state law nor do they conflict or materially interfere with the services required under this Agreement. Section 10: Because General Manager is an at-will employee, the District is not obligated to pay General Manager pending an investigation into any alleged misconduct by the General Manager. Notwithstanding the foregoing, in the event that the District's Board determines, in its sole discretion, that it is in the best interest of the District for General Manager to be placed on paid administrative leave pending such an investigation, General Manager shall fully reimburse any salary provided for that purpose if the misconduct for which the General Manager was under investigation results in the General Manager being convicted of a crime involving an abuse of his office or position as defined in Section 2 of this Agreement. General Manager shall reimburse such salary to the District no later than six months after such conviction. Section 11: In the event that the District provides funds for the legal criminal defense of General Manager, General Manager shall fully reimburse said funds to the District if the General Manager is convicted of a crime involving an abuse of his/her office or position as defined in Section 2 of this Agreement. General Manager shall reimburse such criminal legal defense fees to the District no later than six months after such conviction. Section 12: The terms and conditions of employment for General Manager, including other employment benefits for the General Manager that are not specifically provided for in this Agreement, shall be governed by the Manual, to the extent that amendments to the Manual made after the effective date of this Agreement are not inconsistent with the provisions of this Agreement. In the event of any such inconsistency or conflict, the provisions of this Agreement shall govern. Section 13: This Agreement supersedes any and all other prior agreements, either oral or in writing, and specifically, but not limited to, Mr. Herberg's At Will Employment 5 Return to Aaenda Report Agreement for Assistant General Manager dated January 25, 2012, between the Parties hereto with respect to the employment of Mr. Herberg by District, and contains all of the covenants and agreements between the Parties with respect to that employment in any manner whatsoever. Each Party to this Agreement acknowledges that no representation, inducement, promise, or agreement, orally or otherwise, has been made by any Party, or anyone acting on behalf of any Party, which is not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement or Employment shall be valid or binding on either Party. Section 14: Any notices to be given hereunder by either Party to the other shall be in writing and may be transmitted by personal delivery, or by mail, registered or certified, postage prepaid, with return receipt requested. Mailed notices shall be addressed to the Parties at the addresses maintained in the personnel records of District, but each Party may change that address by written notice in accordance with this Section. Notices delivered personally shall be deemed communicated as of the date of actual receipt; mailed notices shall be deemed communicated as of the date of mailing. Section 15: Any modifications of this Agreement will be effective only if set forth in writing and signed by the Parties. Section 16: The failure of either Party to insist on strict compliance with any of the terms, covenants, or conditions of this Agreement by the other Party, shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times. Section 17: If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way. Section 18: This Agreement shall be governed by and construed in accordance with the laws of the State of California and all applicable ordinances, policies and resolutions. Section 19: General Manager acknowledges that he has had the opportunity and has conducted an independent review of the financial and legal effects of this Agreement. General Manager acknowledges that he has made an independent judgment upon the financial and legal effects of the Agreement and has not relied upon representation of the District, its elected or appointed officers and officials, agents or employees other than those expressly set forth in 6 this Agreement. General Manager acknowledges that he has been advised to obtain, and has availed himself of, legal advice with respect to the terms and provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this At-Will Employment Agreement on the day and year first above written. "DISTRICT" ORANGE COUNTY SANITATION DISTRICT "GENERAL MANAGER" James D. Herberg U Date APPROVED AS TO FORM: "CHAIR, BOARD OF DIRECTORS" BRADLEY R. HOGIN GENERAL COUNSEL 2 2�13 By: 3 Bradt y R. Hogin D to Troy E ar Date STEERING COMMITTEE Neebng Date TOBA.Of Dir. 11/19,14 11/19/14 AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: EXECUTIVE MANAGEMENT TEAM AND MANAGER GROUP COMPENSATION GENERAL MANAGER'S RECOMMENDATION A. Adopt Resolution No. OCSD 14-16 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving salary increases, salary range adjustments and onetime non-base building payment for at-will executive management team employees for Fiscal Year 2014-2015," authorizing the General Manager to implement a base building salary increase for Executive Management Team (EMT) members up to of 3% of salary, to adjust the corresponding salary ranges by 3%, and a one-time non-base building payment of up to $1,000 to Executive Management Team members at the discretion of the General Manager based on performance outcomes. B. Adopt Resolution No. OCSD 14-17 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving salary increases, salary range adjustments and onetime non-base building payment for unrepresented management employees for Fiscal Year 2014-2015," authorizing the General Manager to implement salary range adjustments of up to 5.1% for specific manager classifications due to compaction with supervisor classifications, a base building salary increase for Managers of 3% of salary, and a one-time non-base building payment of up to $1,000 to Managers at the discretion of the General Manager and Department Head based on performance outcomes. SUMMARY Executive Management Team The Orange County Sanitation District (OCSD) has provided no across the board salary increases for Executive Management Team members over the past four (4). Over the past three Q) years, the Executive Management Team's market position has declined from the 60 b percentile to its current position at the 251b percentile. The General Manager is recommending salary increases up to and not to exceed 3% of salary for EMT members, to be applied as base building salary adjustments to the rates of compensation for incumbents, and a one-time non-base building payment of up to $1,000 per EMT member, to be allocated based on job performance. Pursuant to the understanding with the EMT members at the beginning of negotiations, the salary Page 1 of 6 1046667.1 changes would take effect retroactively to July 11, 2014, the first pay period in the current fiscal year. These salary increases would recognize inequities in compensation compared with other groups, the executive level of responsibility, and impacts from staffing reductions within each department The proposed 3% base building salary increase and the corresponding salary range adjustments would move the EMT market position from the 251h percentile to the 371h percentile for FY 2014-15. EMT members' market position will be revisited through the current comprehensive classification and compensation study, which will provide the Board with recommendations for moving forward. Incumbents' current salaries, proposed salaries and percent difference compared to the 75`" percentile benchmark are summarized in the attached table, as requested by the Board of Directors at the September meeting. The proposed compensation adjustment would not exceed $49,500 total for the Executive Management Team members, excluding the General Manager. Current salaries for the EMT total $1,058,405 annually, comprising approximately 1.7% of OCSD's FY 2014-15 total salary budget of$ 63,460,100. Manager Group Over the past four (4) years, OCSD has provided one 2% across the board salary increase for the Manager's Group. Over the past three (3) years, the Manager's Grou� market position has declined from the 701" percentile to its current position at the 60 percentile. The General Manager is recommending salary range adjustments of up to 5.1% for specific classifications (list of affected classifications is attached) due to compaction with supervisor classifications, a base building salary increase for management employees of 3% of salary, and a one-time non-base building payment of up to $1,000 at the discretion pf the General Manager and Department Head based on performance outcomes. Pursuant to the understanding with the Manager's Group at the beginning of negotiations, the salary changes would take effect retroactively to July 11, 2014, the first pay period in the current fiscal year. These salary increases and range adjustments would recognize inequities in compensation compared with other groups, salary compaction issues with supervisor classification salaries, and the increased levels of responsibility as a result of staffing reductions within each department as a result of the 2010 reorganization. The proposed 3% base building salary increase and the corresponding salary range adjustments would move the Manager Group market position from the 60`" percentile to the 70t' percentile for FY 2014-15. The Manager Group market position will be revisited through the current comprehensive classification and compensation study, which will provide the Board with recommendations for moving forward. Page 2 of 6 IN"67.1 Incumbents' current salaries, proposed salaries and percent difference compared to the 751h percentile benchmark are summarized in the attached table, as requested by the Board of Directors at the September meeting. The total cost for the proposed compensation adjustment would not exceed $85,795 for the Manager Group members. Current salaries for the Manager Group total $2,326,560 annually, comprising approximately 3.6% of OCSD's FY 2014-15 total salary budget of $ 63,460,100. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Executive Management Team The six (6) at-will employees of the Orange County Sanitation District's (OCSD) Executive Management Team (EMT) are relied upon heavily to provide leadership, strategic direction, and department oversight at OCSD. These individuals serve in key leadership positions that are critical to the success of the agency. These EMT members hold the following classifications: Executive Management Groun Classifications Assistant General Manager Director of Finance &Administrative Services Director of Engineering Director of Facilities Support Services Director of Human Resources Director of Operations & Maintenance OCSD has provided no base building salary increases to EMT members over the past four (4) years. EMT market position, excluding the General Manager, is currently at the 251h percentile based on 2014 market data. Over the past three (3) years, EMT market position has declined from the 6& percentile in 2011 to its current position at the 251h percentile. Without salary range adjustments, this group's market position is projected to reach the 191h percentile in 2015. The attached chart illustrates this declining trend. Salary adjustments for OCSD's EMT members have not kept pace with those of the organization or the Consumer Price Index (CPI) over the past four (4) years. EMT member's salary increases have totaled 0% since FY 2010-11, while CPI was 8.5% The following table summarizes salary increases since FY 2010-11 and provides CPI data for the same time period, as requested by the Board of Directors at the September meeting. Page 3 of 6 1N"67.1 Historical EMT Salary Increases FY FY FY FY FY Sum 2010-11 2011-12 2012-13 2013-14 2014-15 EMT 0.0% 0.0% 0.0% 0.0% 3.0%' 3.Oe/6 FY FY FY FY FY Sum 2010-11 2011-12 2012-13 2013-14 2014-15 CPI2 0.9% 2.4% 1.9% 1.3% 2.0% 8.5% ' Proposed up to 3% base building salary increase. ] Represents July-to-July CPI change for prior 12-month period. CPI for All Urban Consumers (all items) Los Angeles-Riverside-Orange County, CA. OCSD is committed to maintaining a competitive compensation market position that attracts and retains top employment talent. It is OCSD's philosophy to compensate employees competitively and equitably, and understanding the relative market position assists in that determination. In alignment with that goal, compensation is evaluated on the basis of various factors, including external labor market data and intemal equity. To determine whether OCSD salaries are competitive with the external labor market, OCSD conducts periodic classification and compensation studies as needed due to internal and/or external factors. For EMT level classifications, a consultant conducts an annual market update to assess OCSD compensation relative to its established labor market. Those results are utilized to determine whether OCSD compensation remains competitive. Also, intemal equity is considered to ensure that salaries remain competitive to each job's relative value to the organization. Furthermore, the Board of Directors has authorized a comprehensive classification and compensation study, which is currently in the procurement phase and is targeted for completion by December 2015. This study will review all of the Sanitation District's classifications, to include the EMT, and will provide the Board with data for consideration on an organization-wide structural alignment of its pay systems. However, approving the proposed EMT base building salary range adjustment effective July 2014 will ensure OCSD maintains a competitive compensation market position. The General Manager is authorized per the Board's Personnel Policies and Procedures to periodically adjust the rate of compensation and benefits for EMT members who have signed At-Will agreements so long as no adjustment exceeds the compensation permitted by the applicable salary range and the value of all benefits does not exceed thirty-seven percent (37%) of the incumbent's compensation. Page 4 of 6 IN"67.1 Manager Group The 16 employees that comprise the Orange County Sanitation District's (OCSD) Manager Group are relied upon heavily to provide day-to-day leadership to support strategic direction, and division management oversight at OCSD. This represents a decrease in three (3) manager positions since 2011. These individuals serve in key leadership positions that are critical to the success of the agency. Manager Group members hold the following classifications: Manager Group Classifications Contracts & Purchasing Manager Controller Engineering Manager (5) Environmental Compliance & Regulatory Affairs Manager Environmental Lab & Ocean Monitoring Manager Facilities Manager Human Resources Manager Information Technology Manager IT Systems & Operations Manager Maintenance Manager Operations Manager Risk Manager OCSD has provided one 2% base building salary increase to Manager Group members over the past four (4) years. The Manager Group market position is currently at the 60� percentile based on 2014 market data. Over the �ast three (3) years, the Manager Group market position has declined from the 70f percentile in 2011 to its current position at the 601h percentile. Without salary range adjustments, this group's market position is projected to reach the 52"' percentile in 2015. The attached chart illustrates this declining trend. Salary adjustments for OCSD's Manager Group members have not kept pace with those of the organization or the Consumer Price Index (CPI) over the past four (4) years. Manager Group salary increases have totaled 2% since FY 2010-11, while CPI was 8.5% The following table summarizes salary increases since FY 2010-11 and provides CPI data for the same time period, as requested by the Board of Directors at the September meeting. Historical Manager Group Salary Increases FY FY FY FY FY Sum 2010-11 2011-12 2012-13 2013-14 2014-15 Managers 0.0% 2.0% 0.0% 0.0% 3%f 5.0% Page 5 of 6 IN"67.1 FY FY FY FY FY Sum 2010.11 2011-12 2012-13 2013-14 2014.15 CPI2 0.9% 2.4% 1.9% 1.3% 2.0% 8.5% ' Proposed 3% base building salary increase. 2 Represents July-to-July CPI change for prior 12-month period. CPI for All Urban Consumers (all items) Los Angeles-Riverside-Orange County, CA. To determine whether OCSD salaries are competitive with the external labor market, OCSD conducts periodic classification and compensation studies as needed due to internal and/or external factors. For Manager Group level classifications, a consultant conducts an annual market update to assess OCSD compensation relative to its established labor market. Those results are utilized to determine whether OCSD compensation remains competitive. Also, internal equity is considered to ensure that salaries remain competitive to each jobs' relative value to the organization. OCSD may consider modifying an employee's salary with an equity adjustment when base pay differentials are less than 5% between the manager and the highest paid direct report. Furthermore, the Board of Directors has authorized a comprehensive classification and compensation study, which is currently in the procurement phase and is targeted for completion by December 2015. This study will review all of the Sanitation District's classifications, to include the Manager Group, and will provide the Board with data for consideration on an organization-wide structural alignment of its pay systems. However, approving the proposed Manager Group base-building salary increase effective July 2014 will ensure OCSD maintains a competitive compensation market position. BUDGET/PURCHASING ORDINANCE COMPLIANCE There are sufficient funds within the District's operating budget to fund this increase. ATTACHMENT The following attachments) maybe viewed on-line at the OCSD websife (www.ocsd.corn with the complete agenda package: • Draft Resolution No. OCSD 14-16 (Executive Management Team) • Executive Management Team Market Position, 2011 to 2015 • Executive Management Group Compensation Survey Summary 2014 • Executive Management Group Pay Table, July 2013 • Proposed Executive Management Pay Table, July 2014 • Draft Resolution No. OCSD 14-17 (Manager Group) • Manager Group Market Position, 2011 to 2015 • Manager Group Compensation Survey Summary 2014 • Manager Group Pay Table, July 2013 • Proposed Manager Group Pay Table, July 2014 Page 6 of 6 IN"67.1 Return to Mende Report RESOLUTION NO. OCSD 14-16 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING SALARY INCREASES, SALARY RANGE ADJUSTMENTS AND ONE TIME NON-BASE BUILDING PAYMENT FOR AT-WILL EXECUTIVE MANAGEMENT TEAM EMPLOYEES FOR FISCAL YEAR 2014-2015 WHEREAS, there are six (6) executive management team employees who provide executive leadership, strategic direction, and department oversight for OCSD; and WHEREAS, executive management team employees serve in at-will employment status, which may be terminated at any time by either the General Manager or an executive management team employee with or without cause with no liability; and WHEREAS, salary adjustments for EMT members have not kept pace with those of the organization or the Consumer Price Index (CPI) over the past four (4) years; and WHEREAS, it is OCSD's philosophy to compensate employee classifications competitively, which currently can be achieved through alignment with the salary market; and WHEREAS, executive management team employees' salary ranges have remained constant since 2009 in recognition of economic times; and WHEREAS, at the beginning of negotiations the parties agreed that the salary changes would take effect retroactively to July 11, 2014, the first pay period in the current fiscal year. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: 1. That the Board of Directors hereby authorizes and approves the following changes to salaries for Executive Management Team member, which shall become effective retroactively to the first pay period of July 2014: a. A base building salary increase for Executive Management Team (EMT) members up to 3% of salary and to adjust the corresponding salary ranges by 3%. b. A one-time non-base building payment of up to $1,000 to Executive Management Team members at the discretion of the General Manager based on performance outcomes. 2. That the General Manager, or his designee, is authorized to implement the 1N"69.1 Return to Mende Report changes to salary ranges, salaries and the non-based building payment approved herein. PASSED AND ADOPTED at a regular meeting held November 19, 2014. Tom Beamish, Chairman of the Board ATTEST: Maria E. Ayala Clerk of the Board 1N"69.1 Return to Mende Report Executive Management Team Market Position 2011-2015, Excluding General Manager 70A K7 W.0 E 50.0 a W.o >9s 20.0 10.0 OA 2011 2C-- 2014 2015 Pmjected Return to Agenda Rom Executive Management Group Compensation Survey Summary 2014 Proposed Incumbent Proposed Increase Not Current Salary Not to 75th to Exceed Salary Exceed Percentile %Difference Classification Assistant General Manager 3% $ 194,646 $ 200,485 $ 229,992 -18.2% Director of Engineering 3% $ 174,012 $ 179,232 $ 220,608 -26.8% Director of Finance&Adman Services 3% $ 180,731 $ 186,153 $ 216,360 -19.7% Director of Human Resources 3% $ 167,460 $ 172,484 $ 205,272 -22.6% Director of Operations&Maintenance 3% $ 172,931 $ 178,119 $ 207,600 -20.0% Director of Facilities Support Services 3% $ 168,625 $ 173,684 $ 190,512 -13.0% Sub-Total: Proposed Maximum Cost(Base-Building) $ 31,752 -20.0% Base-Building Increases(proposed maximum cost) $ 31,752 Benefits Cost Increase(37%of base salaries) $ 11,748 Non-Base Building Increases(proposed maximum cost) $ 6,000 Total Cost maximum $ 49,500 Orange County Sanitation District Return to Aaenda Report Classification and Compensation Plan Rates Effective July 1,2013 EXECUTIVE MANAGEMENT GROUP Classification Pay Grade Minimum I Midpoint Control Point Maximum Assistant General Manager EMT114 $ 155,861 $ 194,827 $ 210,414 $ 233,793 Director of Engineering EMT109 $ 141,692 $ 177,116 $ 191,285 $ 212,539 Director of Human Resources EMT109 $ 141,692 $ 177,116 $ 191,285 $ 212,539 Director of Finance and Administrative Services EMT109 $ 141,692 It 177,116 $ 191,285 $ 212,539 Director of Facility Support Services EMT108 $ 128,811 $ 161,014 $ 173,895 $ 193,217 Director of Operations and Maintenance EMT108 $ 128,811 $ 161,014 $ 173,895 $ 193,217 H:%dept\br\HR Open\Agemp Reports\Board&SpdmmgAR's\2014\311914 EMr&Manager Compensation\20141119 Old Versions of AR&Allaobmmrts&Word versideuvxermae,Management Group Pay Tableluly 2013Exeeutive Management Group Pay Table July 2013 9/12/14 Orange County Sanitation District Return to Aaende Report Classification and Compensation Plan PROPOSED Rates Effective July 1,2014 EXECUTIVE MANAGEMENT GROUP Classification Pay Grade Minimum I Midpoint Control Point Maximum Assistant General Manager EMT114 $ 160,537 $ 200,672 $ 216,726 $ 240,807 Director of Engineering EMT109 $ 145,943 $ 182,429 $ 197,024 $ 218,915 Director of Human Resources EMT109 $ 145,943 $ 182,429 $ 197,024 $ 218,915 Director of Finance and Administrative Services EMT109 $ 145,943 $ 182,429 $ 197,024 $ 218,915 Director of Facility Support Services EMT108 $ 132,675 $ 165,844 $ 179,112 $ 199,014 Director of Operations and Maintenance EMT108 $ 132,675 $ 165,844 $ 179,112 $ 199,014 Return to Mende Report RESOLUTION NO. OCSD 14-17 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING SALARY INCREASES, SALARY RANGE ADJUSTMENTS AND ONE TIME NON-BASE BUILDING PAYMENT FOR UNREPRESENTED MANAGEMENT EMPLOYEES FOR FISCAL YEAR 2014-2015 WHEREAS, there are sixteen (16) employees in the management employees job classifications at the Orange County Sanitation District ("OCSD") who serve as organizational leaders and oversee staff within particular divisions and/or workgroups to align performance outcomes with the strategic goals of the agency; and WHEREAS, management employees are unrepresented and meet directly with the General Manager about terms and conditions of employment; and WHEREAS, it is OCSD's philosophy to compensate employee classifications competitively, which can be currently achieved through alignment with the salary market; and WHEREAS, salary adjustments for management employees have not kept pace with those of the organization or the Consumer Price Index (CPI) over the past four (4) years; and WHEREAS, management employees' salaries have forgone salary increases since 2009, in all years except a 2% increase in 2011, in recognition of economic times; and WHEREAS, the General Manager recently entered into discussions with the management employees and completed negotiations in October 2014, which resulted in agreed upon proposed changes to wages; and WHEREAS, at the beginning of negotiations the parties agreed that the salary changes would take effect retroactively to July 11, 2014, the first pay period in the current fiscal year. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: 1. That the Board of Directors hereby authorizes and approves the following changes to salaries for management employees, which shall become effective retroactively to the first pay period of July 2014: a) Salary range adjustments of up to 5.1% for manager classifications as set forth in Managers Group Classification and Compensation Plan Proposed IN6668.1 Return to Mende Report Rates Effective July 1, 2014, due to compaction with supervisor classifications. b) A base building salary increase for Managers of 3% of salary. c) A one-time non-base building payment of up to $1,000 to Managers at the discretion of the General Manager and Department Head based on performance outcomes. 2. That the General Manager, or his designee, is authorized to implement the changes to salary ranges, salaries and the non-based building payment approved herein. PASSED AND ADOPTED at a regular meeting held November 19, 2014. Tom Beamish, Chair ATTEST: Maria E. Ayala Clerk of the Board IN6668.1 Return to Mende Report Manager Group Market Position 2011-2015 w.o MO A W.o E 52.5 a s .o r A w.o 0 30.0 20.0 10.0 0.0 20u 2012 Zola 2015 VrojWed Return to Agenda Report Manager Group Compensation Survey Summary 2014 Incumbent Incumbent Proposed Current Proposed 75th % Increase Salary Salary Percentile Difference Classification Contracts&Purchasing Manager 3% $ 144,601 $ 148,939 $ 144,372 0.2% Controller 3% $ 154,918 $ 159,566 $ 170,436 -10.0% Engineering Manager 3% $ 154,918 $ 159,566 $ 162,348 -4.8% Engineering Manager 3% $ 153,224 $ 157,820 $ 162,348 -6.0% Engineering Manager 3% $ 153,234 $ 157,831 $ 162,348 -5.9% Engineering Manager 3% $ 154,003 $ 158,623 $ 162,348 -5.4% Engineering Manager 3% $ 154,003 $ 158,623 $ 162,348 -5.4% Environmental Compliance&Regulatory Affairs Manager 3% $ 146,640 $ 151,039 $ 166,596 -13.6% Environmental Laboratory&Ocean Monitoring Manager 3% $ 143,728 $ 148,040 $ 154,308 -7.4% Facilities Manager 3% 1 $ 127,067 $ 130,879 $ 135,624 -6.7% Human Resources Manager 3% $ 146,640 $ 151,039 $ 146,292 0.2% Information Technology Manager 3% $ 140,338 $ 144,548 $ 141,852 -1.1% IT 50tems&Operations Manager 3% $ 147,555 $ 151,982 $ 148,044 -0.3% Maintenance Manager 3% $ 133,070 $ 137,062 $ 142,380 -7.0% Operations Manager 3% $ 139,506 $ 143,691 $ 170,940 -22.5% Risk Manager 3% $ 133,070 $ 137,062 $ 135,372 -1.7% gase-guildin Increases $ 69,795 Non-Base Building Increases(proposed maximum cost( $ 16,000 Total Cost(maximum( $ 85,79S Orange County Sanitation District Return to Aoenda Report Classification and Compensation Plan Rates Effective July 1,2013 MANAGERS GROUP Classification Pay Grade Minimum Midpoint Control Point Maximum Facilities Manager MGR91 $ 96,777.00 $ 120,972 $ 130,650 $ 145,167 Contracts&Purchasing Manager MGR94 $ 106,455 $ 133,070 $ 143,716 $ 159,684 Environmental Lab&Ocean Monitoring Manager I MGR94 $ 106,455 $ 133,070 $ 143,716 $ 159,684 Human Resources Manager I MGR94 $ 106,455 $ 133,070 $ 143,716 $ 159,684 Information Technology Manager I MGR94 $ 106,455 $ 133,070 $ 143,716 $ 159,684 Maintenance Manager I MGR94 1 $ 106,455 $ 133,070 $ 143,716 $ 159,684 Operations Manager I MGR94 1 $ 106,455 $ 133,070 $ 143,716 $ 159,684 Risk Manager I MGR94 1 $ 106,455 $ 133,070 $ 143,716 $ 159,684 Controller I MGR96 1 $ 117,101 $ 146,377 $ 158,087 $ 175,652 Engineering Manager I MGR96 1 $ 117.101 $ 146,377 $ 158,087 $ 175,652 Environmental Cor l&Reg Affairs Manager I MGR96 $ 117.101 $ 146,377 $ 158,087 $ 175,652 IT Systems&Operations Manager MGR96 $ 117.101 $ 146,377 $ 158,087 $ 175,652 Updated 311412014 1 Orange County Sanitation District Return to Mende Report Classification and Compensation Plan PROPOSED Rates Effective July 1, 2014 MANAGERS GROUP Classification Minimum Midpoint Control Point Maximum Facilities Manager $ 97,000 $ 121,250 $ 130,950 $ 145,500 Information Technology Manager $ 109,649 $ 137,061 $ 148,026 $ 164,474 Maintenance Manager $ 109,649 $ 137,061 $ 148,026 $ 164,474 Operations Manager $ 109,649 $ 137,061 $ 148,026 $ 164,474 Risk Manager $ 109,649 $ 137,061 $ 148,026 $ 164,474 Contracts&Purchasing Manager $ 111,900 $ 139,875 $ 151,065 $ 167,850 Environmental Lab&Ocean Monitoring Manager $ 111,900 $ 139,875 $ 151,065 $ 167,850 Human Resources Manager $ 111,900 $ 139,875 $ 151,065 $ 167,850 Environmental Compl&Reg Affairs Manager $ 111,900 $ 139,875 $ 151,065 $ 167,850 IT Systems&Operations Manager $ 115,500 $ 144,375 $ 155,925 $ 173,250 Controller $ 118,250 $ 147,813 $ 159,638 $ 177,375 Engineering Manager $ 118,250 $ 147,813 $ 159,638 $ 177,375 1 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease FSSD Facilities Support Services Department gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) ICS Incident Command System IERP Integrated Emergency Control Plan LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District GOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration POTW Publicly Owned Treatment Works ppm Parts per million RFP Request For Proposal RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency Glossary of Terms and Abbreviations SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation 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 know 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. Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. 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. Glossary of Terms and Abbreviations Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (D1T) — the dilution at which the majority of the people detect the odor becomes the DrT for that air sample. Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service (LOS)—Goals to support environmental and public expectations for performance. NDMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works (POTW)— Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge—Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater. 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. Glossary of Terms and Abbreviations Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed —A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.