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HomeMy WebLinkAbout07-17-2019 Administration Committee Meeting Agenda07/17/2019 Administration Committee Meeting Agenda Page 1 of 3 Orange County Sanitation District SPECIAL Meeting of the ADMINISTRATION COMMITTEE Wednesday, July 17, 2019 5:00 P.M. Administration Building Board Room 10844 Ellis Avenue Fountain Valley, CA (714) 593-7433 AGENDA CALL TO ORDER: PLEDGE OF ALLEGIANCE: DECLARATION OF QUORUM: (Clerk of the Board) PUBLIC COMMENTS: If you wish to address the Committee on any item, please complete a Speaker’s Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you want to speak. Speakers will be recognized by the Chairman and are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee. CONSENT CALENDAR: The Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1.APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve Minutes of the June 12, 2019 AdministrationCommittee Meeting. 2.LABORATORY SERVICES FOR CONTINGENCY TESTING AND SPECIAL PROJECTS (Lan Wiborg) RECOMMENDATION: Approve a purchase order contract to Weck Laboratories, Inc. to provide special project support testing services in an amount not to exceed $110,430 for the period of July 1, 2019 to June 30, 2020. 07/17/2019 Administration Committee Meeting Agenda Page 2 of 3 NON-CONSENT: 3. 2020 BENEFITS INSURANCE RENEWAL (Celia Chandler) RECOMMENDATION: Recommend to the Board of Directors to: Approve the Orange County Sanitation District 2020 Benefits Insurance Renewal for the overall not-to-exceed amount of $13,137,895; and a one-time adjustment to 2019 Health & Welfare Insurance purchase order for the not-to-exceed (NTE) amount of $230,000, as specified below: A. WORKTERRA (medical, dental, and vision plans; Health Savings Accounts [HSA]; and Employee Assistance Program [EAP]) – Not to Exceed $12,377,584; B. Prudential (basic life, short- and long-term disability) – Not to Exceed $730,311; C. The Standard (EMT & Manager disability) – Not to Exceed $30,000; and D. Approve a contingency of $656,895 (5%). E. For the 2019 Plan Year, approve a one-time reallocation from the 2019 operating budget in the amount of $230,000 to be transferred to group health insurance benefits, resulting in a change in the total cost approved by the Board, from $12,894,770 to $13,124,770. The reallocation would not result in an increase to the overall 2019 budget. INFORMATION ITEMS: 4. ORANGE COUNTY SANITATION DISTRICT ENVIRONMENTAL SERVICES LABORATORY AND OCEAN MONITORING UP-DATE (Lan Wiborg) Each month, staff provides an informational presentation on topics of interest to the Board of Directors. This month’s topic: Orange County Sanitation District Environmental Services Laboratory, Monitoring, and Compliance Division (LMC): Protecting Public Health and the Environment. 5. INTERIM FOOD WASTE RECEIVING FACILITY, PROJECT NO. P2-124 (Kathy Millea) Staff will present information regarding proposed Interim Food Waste Receiving Facility, Project No. P2-124, included a project viability review that verified that the project is economically justifiable based on project costs and anticipated tipping fees. DEPARTMENT HEAD REPORTS: 07/17/2019 Administration Committee Meeting Agenda Page 3 of 3 BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Board members may request staff to place an item on a future agenda. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: The next Administration Committee meeting is scheduled for Wednesday, September 11, 2019 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) 593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Sanitation District’s Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A. Lore, 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 James 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 Lan Wiborg (714) 593-7450 lwiborg@ocsd.com Director of Human Resources Celia Chandler (714) 593-7202 cchandler@ocsd.com 06/12/2019 Administration Committee Minutes Page 1 of 7 MINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, June 12, 2019 at 5:00 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Vice-Chairman Richard Murphy on June 12, 2019 at 5:00 p.m. in the Administration Building of the Orange County Sanitation District. Director Mark Murphy led the Flag Salute. A quorum was declared present as follows: COMMITTEE MEMBERS PRESENT: Richard Murphy, Vice-Chairman James Ferryman Cecilia Iglesias Peter Kim Mark Murphy Steve Nagel Andrew Nguyen Glenn Parker Erik Peterson Christina Shea David Shawver, Board Chairman John Withers, Board Vice-Chairman COMMITTEE MEMBERS ABSENT: Chad Wanke, Chairman STAFF PRESENT: Jim Herberg, General Manager Lorenzo Tyner, Assistant General Manager Celia Chandler, Director of Human Resources Kathy Millea, Director of Engineering Lan Wiborg, Director of Environmental Services Kelly Lore, Clerk of the Board Bob Bell Jennifer Cabral Lisa Frigo Al Garcia Ted Gerber Brad Hamilton Heidi Janz Mark Kawamoto Laura Maravilla Joshua Martinez Tom Meregillano Jeff Mohr Victoria Pilko Tyler Ramirez Wally Ritchie Roya Sohanaki John Swindler Eros Yong Paula Zeller OTHERS PRESENT: Brad Hogin, General Counsel Dennis Mulqueeney, Alliant PUBLIC COMMENTS: None. ITEM NO. 1 06/12/2019 Administration Committee Minutes Page 2 of 7 REPORTS: Vice-Chair Murphy did not provide a report. General Manager Jim Herberg stated that a Strategic Planning Survey had been emailed to all Board Members for their input. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the May 8, 2019 Administration Committee Meeting. AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver NOES: None ABSTENTIONS: None ABSENT: Shea, Wanke and Withers 2. FY 2019-20 USE CHARGES FOR SANTA ANA WATERSHED PROJECT AUTHORITY (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 19-XX, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District Establishing Use Charges for the 2019-20 Fiscal Year Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority (“SAWPA”)”. AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver NOES: None ABSTENTIONS: None ABSENT: Shea, Wanke and Withers 3. ENVIRONMENTAL REGULATORY REPORTS (Lan Wiborg) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file environmental regulatory reports: Biosolids Management Compliance Report 2018; Annual Pretreatment Program Report Fiscal Year 2017-2018; Semi-Annual Pretreatment Program Report Fiscal Year 2018-2019 (July-December); Annual Greenhouse Gas Emissions Report 2018; Annual Emission Report 2018; and Marine Monitoring Annual Report 2017/2018. AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver NOES: None 06/12/2019 Administration Committee Minutes Page 3 of 7 ABSTENTIONS: None ABSENT: Shea, Wanke and Withers 4. PHYSICAL SECURITY ACCESS SYSTEM (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Authorize an additional $108,980 to Purchase Order No. 106467-OB with Maxim Security Systems to service the card access, surveillance cameras, and intercom systems, and to maintain physical security systems in accordance with the terms and conditions of Bid Specification No. S-2018-983, for a total amount not to exceed $198,980 for the period ending October 22, 2019. AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver NOES: None ABSTENTIONS: None ABSENT: Shea, Wanke and Withers Director Shea arrived at the meeting at 5:03 p.m. Board Vice-Chair John Withers arrived at the meeting at 5:16 p.m. NON-CONSENT: 5. 2019-20 OPERATIONAL PROPERTY-LIABILITY INSURANCE RENEWALS (Celia Chandler) Director of Human Resources Celia Chandler provided a brief overview of the item and introduced Dennis Mulqueeney, broker from Aliant, who provided a PowerPoint presentation which included information regarding: current state of the insurance market; insurance marketing activities in Property & Liability and Excess Workers’ Compensation; OCSD historic rates and an overview of the renewal not to exceed costs. Mr. Mulqueeney responded to questions regarding: probable premium estimates; reductions to premiums; alternative dispute resolution; recent asset values up to 2.147 billion; self-insurance retentions (SIR); admitted v. non-admitted carriers; rating of carriers; and deductibles v. SIR. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve the Orange County Sanitation District FY 2019-20 Operational Property-Liability Insurance Renewals for the not-to-exceed amounts specified below: • Excess General Liability Insurance – Not to Exceed $515,371; • Property and Boiler & Machinery – Not to Exceed $837,230; • Earthquake Insurance – Not to Exceed $86,585; and 06/12/2019 Administration Committee Minutes Page 4 of 7 • Excess Workers’ Compensation Insurance - a rate of $0.3120 per $100 of payroll – Not to Exceed $218,000; and B. Provide an analysis of pricing and different retentions within six months. AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Withers NOES: None ABSTENTIONS: None ABSENT: Wanke 6. FLEET MANAGEMENT INFORMATION SYSTEM (Lorenzo Tyner) Assistant General Manager Lorenzo Tyner provided a brief description of the item. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Award a Professional Consultant Services Agreement to Total Resource Management, Inc. for the procurement of software and services to implement and configure the Transportation Module for Enterprise Asset Management System (IBM Maximo), Specification No. CS-2018-1003BD, for a total amount not to exceed $424,101; and B. Approve a contingency of $42,410 (10%). AYES: Ferryman, Iglesias, Kim, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Withers NOES: None ABSTENTIONS: M. Murphy ABSENT: Wanke 7. INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY CONTRACT – BIOSOLIDS MANAGEMENT (Lan Wiborg) Director of Environmental Services Lan Wiborg provided a brief description of the item. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve Agreement number 4600002709-HD with the Inland Empire Regional Composting Authority (IERCA) for the Orange County Sanitation District (Sanitation District) to pay IERCA to receive and compost up to approximately 50 wet tons per day of the Sanitation District’s biosolids at a base fee (tipping fee) of $56 per wet ton, plus an administrative fee of $2 per wet ton, and an annual base fee increase of $1 per fiscal year, with a term of the Agreement of five (5) years and, upon mutual written agreement, an option to extend on a year-to-year basis with up to two (2) annual extensions in a total annual amount not to exceed $820,000 per year; and 06/12/2019 Administration Committee Minutes Page 5 of 7 B. Approve a 10% contingency of $400,000 in the event the Sanitation District needs to send additional loads to this compost option. AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Withers NOES: None ABSTENTIONS: None ABSENT: Wanke INFORMATION ITEMS: 8. DIGESTER GAS FACILITIES REHABILITATION, PROJECT NO. J-124 (Kathy Millea) Director of Engineering Kathy Millea provided a PowerPoint presentation that reviewed the project and the preliminary design report including: Project objectives; construction cost estimates; project budget changes; total CIP budget authority; and top budget increases. Ms. Millea and Mr. Herbert responded to questions regarding alternatives to the projects. NON-CONSENT: 9. PROPOSED FY 2019-20 BUDGET UPDATE (Lorenzo Tyner) Mr. Tyner provided a brief update of the Budget process and introduced Controller Wally Ritchie who provided PowerPoint presentation which included an overview of revenue, expenses, CIP, and debt service. Mr. Ritchie stated that the Budget Update contains an errata sheet which includes an increase to the operating units and a few minor corrections made after the publication of the budget book. Mr. Ritchie and Mr. Tyner responded to questions regarding the allocation for rehabilitation/replacement. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve proposed Operating, Capital, Debt/COP Service, and Self-Insurance Budgets for FY 2019-20 as follows: Adopted Budget Proposed Budget FY 2019-20 FY 2019-20 Operations & Maintenance $160,204,370 $168,216,487 Net Capital Improvement Program 137,027,258 153,377,431 Allocation for Rehabilitation/Replacement 0 200,000,000 Debt/COP Service 79,956,000 76,775,000 General Liability and Property Self-Insurance 780,000 780,000 Worker's Compensation Self Insurance 1,750,000 1,750,000 Intra-District Joint Equity Purchase/Sale(1) 3,500,000 5,000,000 TOTAL $383,217,628 $605,848,918 06/12/2019 Administration Committee Minutes Page 6 of 7 (1)Cash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated Revenue Area 15 (RA15). AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Withers NOES: None ABSTENTIONS: None ABSENT: Wanke 10. GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2019-20 (Lorenzo Tyner) Mr. Tyner provided a brief description of the item. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 19-XX, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District Establishing the Annual Appropriations Limit for Fiscal Year 2019-20 for the District in accordance with the Provisions of Division 9 of Title 1 of the California Government Code”. AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Withers NOES: None ABSTENTIONS: None ABSENT: Wanke INFORMATION ITEMS: 11. ORANGE COUNTY SANITATION DISTRICT ENVIRONMENTAL SERVICES RESOURCE PROTECTION (Lan Wiborg) Lan Wiborg, Director of Environmental Services, provided an informative PowerPoint presentation that included: an overview of the divisions within Environmental Services Department; resource recovery at OCSD; OCSD source control; an overview of the Clean Water Act; an overview of an industrial user (definition and requirements); and non-industrial source control and the urban runoff program. Roya Sohanaki, Engineering Manager, presented information on the awards received by the OCSD program and an overview of the effectiveness of the source control program. DEPARTMENT HEAD REPORTS: None. 06/12/2019 Administration Committee Minutes Page 7 of 7 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Vice-Chair Murphy declared the meeting adjourned at 5:45 p.m. to the Special meeting to be held on Wednesday, July 17, 2019 at 5:00 p.m. Submitted by: _____________________ Kelly A. Lore, MMC Clerk of the Board Page 1 of 3 ADMINISTRATION COMMITTEE Meeting Date 07/17/19 To Bd. of Dir. 07/24/19 AGENDA REPORT Item Number 2 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lan C. Wiborg, Director of Environmental Services SUBJECT: LABORATORY SERVICES FOR CONTINGENCY TESTING AND SPECIAL PROJECTS GENERAL MANAGER'S RECOMMENDATION Approve a purchase order contract to Weck Laboratories, Inc. to provide special project support testing services in an amount not to exceed $110,430 for the period of July 1, 2019 to June 30, 2020. BACKGROUND The Orange County Sanitation District (Sanitation District) is required under its National Pollutant Discharge Elimination System (NPDES) permit to perform routine laboratory testing to verify that its discharge meets compliance limits. In addition to routine monitoring, our NPDES permit requires the Sanitation District to conduct Strategic Process Studies (SPS) that address areas of interest or concern that are not addressed by routine monitoring. A significant amount of the Sanitation District’s biosolids are land applied in Arizona. The State of Arizona requires analysis reported for these biosolids be performed by an Arizona accredited laboratory. Weck Laboratories is one of the few laboratories in our region accredited by the State of Arizona to analyze biosolids. The majority of the Sanitation District’s routine laboratory testing is performed in-house by the Sanitation District laboratory. However, in cases of instrument issues, environmental considerations, electrical or HVAC issues, or unexpected personnel issues, it is important to have a contingency plan for the rare occasions when the Sanitation District laboratory is unable to perform routine monitoring, and ensure that we meet the routine monitoring requirements of our NPDES permit. In contrast to routine testing, SPS often call for scientific testing methods which the Sanitation District laboratory does not perform. This may be due to limitations on instruments, technology, or personnel. Scientific analyses which cannot be performed by the Sanitation District laboratory must be contracted out to an external laboratory. RELEVANT STANDARDS • Comply with environmental permit requirements • Protecting public health and environment Page 2 of 3 • Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard PROBLEM In order to meet the requirements of the NPDES permit, samples must be subcontracted to an external laboratory at times for specialized testing which the Sanitation District laboratory cannot perform due to equipment, staffing, regulatory restrictions, or when special projects are implemented, such as the proposed food waste project. Such projects often require specialized tests, or pilot testing which can be performed by an outside laboratory while the Sanitation District laboratory develops methods for long-term implementation in the Sanitation District laboratory. PROPOSED SOLUTION Approve a purchase order to Weck Laboratories to provide special project support testing services. TIMING CONCERNS An outside laboratory contract is necessary to meet the requirements of our current NPDES permit, and to ensure our ability to adapt and comply with the changing regulatory landscape which will manifest itself in future iterations of the permit. The existing outside laboratory purchase order contract for special projects expired on June 30, 2019. RAMIFICATIONS OF NOT TAKING ACTION Without a contract for outside laboratory services, each time the laboratory wants to subcontract work, it would be required to request a quote and obtain a purchase order before being able to send samples for analysis. Many samples that have been collected for regulatory compliance have a holding time of seven days or less, and some can only be held for between 24 and 72 hours between sampling and analysis. The ability to send samples quickly can make the difference between a sample which meets the criteria for a regulatory compliance sample and one which does not. ADDITIONAL INFORMATION The Sanitation District sent out Specification No. S-2019-1048 for Special Project Support Testing Services to 213 potential bidders via Planet Bids; 28 prospective vendors showed interest by actually reviewing the bid requirements; and Weck Laboratories was the only qualified respondent. CEQA N/A Page 3 of 3 FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item is included in the FY 2019-20 budget. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Exhibit B Price form EXHIBIT B BID PRICE FORM Special Project Support Testing Services SPECIFICATION NO. S-2019-1048 BID PRICE FORM Specification No. S-2019-1048 Due Date for Bid Opening: May 21, 2019 at 2:00 P.M. PT. NOTE: For the purpose of bid scoring and evaluation, OCSD will only evaluate the cost provided by Bidder in Exhibit B – Bid Price Form, Supplemental Information Form. DO NOT include the cost for Food Waste Slurry testing in the below Total Lump Sum cost. The undersigned does hereby offer to provide services in accordance with all provisions of the Notice Inviting Bids and the Scope of Work for the following price. Incomplete submittal of requested information as called out in the bid specification requirements may deem the bid as non-responsive. Submit total amount as follows: Total Lump Sum cost of Special Project Support Testing Services (from Exhibit B – Bid Price Form, Supplemental Information Form, not including Food Waste Slurry testing) in accordance with Exhibit A – Scope of Work $ Amount written in words: This NIB will be awarded based upon the total cost as written in words. Where there is a discrepancy between words and figures, WORDS WILL GOVERN. Where there is a discrepancy between item unit price and extended total, UNIT PRICE WILL GOVERN. Please verify your calculations before submitting your Bid; OCSD will not be responsible for Bidder's miscalculations. TOTAL LUMP SUM COST WRITTEN IN WORDS: The enclosed bid includes the following required submittals. The following pages must be submitted/uploaded as a separate file online via our Bids Online System at www.ocsd.com. 1. Bid Price Form, Exhibit B – Supplemental Information Form 2. Acknowledgment of Insurance Requirements, Exhibit C 3. Non-Collusion Affidavit, Exhibit G Name of Firm Authorized Agent of Company (Printed or Typed) Authorized Agent’s Job Title Signature of Authorized Agent Mailing Address Telephone Number Date City, State, Zip Code Fax Number Email Page 1 of 5 ADMINISTRATION COMMITTEE Meeting Date 07/17/19 To Bd. of Dir. 07/24/19 AGENDA REPORT Item Number 3 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Celia Chandler, Director of Human Resources SUBJECT: 2020 BENEFITS INSURANCE RENEWAL GENERAL MANAGER'S RECOMMENDATION Approve the Orange County Sanitation District 2020 Benefits Insurance Renewal for the overall not-to-exceed amount of $13,137,895; and a one-time adjustment to 2019 Health & Welfare Insurance purchase order for the not-to-exceed (NTE) amount of $230,000, as specified below: A. WORKTERRA (medical, dental, and vision plans; Health Savings Accounts [HSA]; and Employee Assistance Program [EAP]) – Not to Exceed $12,377,584; B. Prudential (basic life, short- and long-term disability) – Not to Exceed $730,311; C. The Standard (EMT & Manager disability) – Not to Exceed $30,000; and D. Approve a contingency of $656,895 (5%). E. For the 2019 Plan Year, approve a one-time reallocation from the 2019 operating budget in the amount of $230,000 to be transferred to group health insurance benefits, resulting in a change in the total cost approved by the Board, from $12,894,770 to $13,124,770. The reallocation would not result in an increase to the overall 2019 budget. SUMMARY In accordance with collective bargaining agreements, the Orange County Sanitation District (Sanitation District) has a contractual obligation to provide healthcare and welfare insurance benefits to employees and eligible dependents. Over the years, Human Resources (HR) has implemented ongoing cost-containment measures to include: joining a risk-sharing pool under California State Association of Counties – Excess Insurance Authority (CSAC-EIA), making plan design changes to align with best practices, bundling insurance coverages, and negotiating rate guarantees. HR met and conferred with the unions to secure all benefit changes. The Sanitation District’s health insurance broker, Alliant, began the renewal process for the agreed to benefits in March and received quotes in June. After negotiating with the insurance carriers, Alliant was able to secure competitive rates for the Sanitation District Page 2 of 5 without compromising the level of benefits provided to employees and eligible dependents. The cost of insurance coverage will increase by 0.1% overall for the 2020 Plan Year, with premiums specified in the attached rate list. Employees share in the cost of medical and dental insurance, paying 10% of the cost for employee-only HMO plans and 20% of the cost for all other medical plans and enrollment levels, as well as 20% of the cost of dental plans. A contingency budget in the amount of $656,895, or 5% of the total cost for benefits insurance, is requested. This contingency budget may be utilized in the event that the actual cost for benefits insurance exceeds the NTE amounts requested due to fluctuations such as changes in the Sanitation District’s number of employees, changes in employees’ eligibility for District-paid benefits, and other factors. Additionally, a one-time reallocation is requested from the 2019 operating budget in the amount of $230,000 to be transferred to group health insurance benefits to account for actual 2019 Plan Year costs. The benefit renewal data used in the 2019 projections was calculated based on the census data, which is required by the insurance carriers eight (8) months in advance of the plan year. Throughout the plan year, changes in employee composition such as new hires, employee plan selection and turnover, resulted in an increase in actual costs. BACKGROUND For the 2018 Plan Year, the overall increase to insurance was 3.1%, followed by 4.1% in 2019. In May 2015, the Board of Directors approved moving the Sanitation District’s medical insurance from direct contracts with the carriers to joining the insurance risk sharing pool under California State Association of Counties – Excess Insurance Authority (CSAC-EIA). The association with CSAC-EIA resulted in immediate and future cost savings to the Sanitation District in medical insurance premiums and dictated a change from fiscal to calendar-based plan year, from January through December. Staff typically presents the benefits renewal information to the Board of Directors annually every July, for an effective date of January 1st of the year therafter. The move to CSAC-EIA has proved to be beneficial based on the rate increases the Sanitation District has received in the past few years. RELEVANT STANDARDS • Offer competitive compensation and benefits • Comply with OCSD Policy 4.1 – Insurance Page 3 of 5 PROBLEM The Sanitation District has a contractual obligation to provide healthcare and welfare insurance benefits to employees and eligible dependents, and any benefit changes are subject to the meet and confer process. Additionally, the Sanitation District is required to hold an annual benefits open enrollment period every October to provide employees and eligible dependents the opportunity to make changes to their benefit elections, for an effective date of January 1st of the year thereafter. Insurance contracts are required to be finalized in August 2019, ahead of open enrollment. Each year, the benefit renewal data used in cost projections is calculated based on the census data, which is required by the insurance carriers eight months in advance of the plan year. Throughout the plan year, changes in employee composition such as new hires, employee plan selection and turnover, may result in a change in actual costs. Based on the required timelines, projected costs and actual costs will vary year to year. PROPOSED SOLUTION Approve the benefits insurance renewals as described above with the respective carriers to ensure continued coverage for employees and eligible dependents, along with the contingency and 2019 budget reallocation. TIMING CONCERNS Board approval is necessary in July 2019 to ensure that the Sanitation District meets its insurance renewal deadlines in August, to finalize preparations for the October benefits open enrollment, and for continued coverage for Sanitation District employees and eligible dependents, in accordance with collective bargaining agreements and personnel policies. RAMIFICATIONS OF NOT TAKING ACTION Without Board approval, the Sanitation District cannot finalize the contracts with the insurance carriers in August for the 2020 Plan Year, and may not be able to fulfill remaining payments for the 2019 Plan Year. A lapse in payment to the insurance carriers would result in the interruption of medical, dental, vision, EAP, life, and disability coverage and services to employees and eligible dependents; and the Sanitation District would not be meeting its obligation to provide these benefits as provided for in collective bargaining agreements and personnel policies. PRIOR COMMITTEE/BOARD ACTIONS N/A Page 4 of 5 ADDITIONAL INFORMATION Medical Insurance The Sanitation District’s medical benefits are designed to help maintain wellness and protect employees and their families from major financial hardship in the event of illness or injury. The Sanitation District offers a choice of medical plans through Anthem Blue Cross and Kaiser Permanente. HMO (Health Maintenance Organization) plans offer comprehensive coverage. Employees have a choice between the Anthem Blue Cross HMO or the Kaiser HMO plan. The PPO (Preferred Provider Organization) plan through Anthem Blue Cross offers a network of doctors and healthcare facilities that provide services to plan members at special discounted rates. The Sanitation District also offers two high deductible plans; a high deductible HMO plan through Kaiser, and a high deductible PPO plan through Anthem Blue Cross. District-Paid Retiree Medical Insurance Employees hired prior to July 1, 1988 receive a limited duration of District-paid medical insurance upon retirement. Retirees falling within this group receive 2.5 months of District- paid medical insurance for each year of continuous service. Employees hired after July 1, 1988 are ineligible for this benefit. Therefore, the benefit will reduce and eventually expire over time as the remaining employees within this group retire, and as the limited duration of each eligible retiree’s benefit is completed. Dental Insurance The Sanitation District provides the Delta Dental plan to all benefit eligible employees. Vision Insurance The Sanitation District currently provides vision insurance to all benefit eligible employees through Vision Service Plan (VSP). Basic Life Insurance Life insurance provides protection for an employee’s beneficiary in the event of death. All benefit eligible full-time and part-time employees automatically receive Basic Life and Accidental Death & Dismemberment insurance coverage. The benefit amount is $50,000 for employees, and three times salary for managers and executives. Coverage is offered through Prudential. Short-Term Disability Insurance The short-term disability insurance plan protects employees when non-work related illness or injury makes it impossible for them to work for a short period of time. Under the plan, income may be continued for up to 26 weeks. The Sanitation District pays the entire cost of coverage for regular full-time and part-time employees. Coverage is offered through Prudential. Page 5 of 5 Long-Term Disability Insurance The long-term disability insurance plan protects employees when an illness or injury makes it impossible for them to work for an extended period of time. Under the plan, employees who are disabled for more than 90 days are eligible to receive a benefit of 67% of their basic monthly pay up to $5,000/month. The Sanitation District pays the entire cost of coverage for regular full-time and part-time employees with five or more years of service. Coverage is offered through Prudential. Executive Disability The additional long-term disability insurance plan provides increased income protection for executives and managers. Under the plan, eligible employees who are disabled for more than 90 days due to a non-work related illness or injury are eligible to receive an additional benefit of $3,100/month. The first $5,000/month is covered by the Sanitation District group long-term disability plan benefit. Coverage is offered through The Standard. Health Savings Account Employees who elect the Anthem High Deductible Health Plan (HDHP) are simultaneously enrolled in a Health Savings Account (HSA) which provides a method for the employee to save for heath-related expenses. The Sanitation District currently makes an annual contribution to the HSA based on the increased deductible and the savings incurred by employees electing the HDHP plan compared to the PPO plan. Employee Assistance Program The EAP plan protects employees and family members when they need help with personal problems such as marital and relationship problems; stress, anxiety and depression; grief and loss; or substance abuse. Coverage is offered through ComPsych. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District’s Purchasing Ordinance. The funds for the renewal of these insurances are derived from the Sanitation District FY 2019-20 Operating Budget. For the adjustment to 2019 group health insurance benefits, no additional budgeted funds are needed due to savings in other salary and benefit line items. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • 2020 Group Health & Welfare Insurance Renewal Rate List 2020 Group Health & Welfare Insurance Renewal Rates Monthly Rates per Employee Medical Current Monthly Rate (2019) 2020 Renewal % Change Kaiser HMO - Employee Only $629.00 $631.00 0.3% Kaiser HMO - Employee + 1 $1,242.00 $1,245.00 0.2% Kaiser HMO - Employee + Fam $1,749.00 $1,754.00 0.3% Kaiser Bronze HMO - Employee Only $374.00 $375.00 0.3% Kaiser Bronze HMO - Employee + 1 $731.00 $733.00 0.3% Kaiser Bronze HMO - Employee + Fam $1,027.00 $1,030.00 0.3% Anthem Blue Cross HMO - Employee Only $661.00 $663.00 0.3% Anthem Blue Cross HMO - Employee +1 $1,388.00 $1,392.00 0.3% Anthem Blue Cross HMO - Employee + Fam $1,983.00 $1,989.00 0.3% Anthem Blue Cross PPO - Employee Only $890.00 $892.00 0.2% Anthem Blue Cross PPO - Employee + 1 $1,867.00 $1,872.00 0.3% Anthem Blue Cross PPO - Employee + Fam $2,666.00 $2,673.00 0.3% Anthem Blue Cross HDHP - Employee Only $746.00 $748.00 0.3% Anthem Blue Cross HDHP - Employee + 1 $1,566.00 $1,570.00 0.3% Anthem Blue Cross HDHP - Employee + Fam $2,236.00 $2,242.00 0.3% Dental Delta Dental PPO - Employee Only $50.80 $50.10 -1.4% Delta Dental PPO - Employee + Family $137.10 $135.20 -1.4% Vision VSP Vision $16.70 Life & Disability Prudential Basic Life/AD&D $0.214 per $1,000 Prudential Long-Term Disability *$1.00 per $100 Prudential Short-Term Disability $30.00 Employee Assistance Program (EAP) ComPsych EAP $1.56 Health Savings Account ** Health Savings Account Banking Fees $2.72 $2.72 0.0% *Prudential Long-Term Disability is District-paid only for employees with at least 5 years of service ** Health Savings Accounts are only provided to those employees who select the Anthem High Deductible Health Plan Rate guaranteed through 12/31/2021 Rate guaranteed through 12/31/2021 Rate guaranteed through 12/31/2021 Rate guaranteed through 12/31/2020 Rate guaranteed through 12/31/2024 Page 1 of 1 ADMINISTRATION COMMITTEE Meeting Date 07/17/19 To Bd. of Dir. -- AGENDA REPORT Item Number 4 Item Number -- Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lan C. Wiborg, Director of Environmental Services SUBJECT: ORANGE COUNTY SANITATION DISTRICT ENVIRONMENTAL SERVICES LABORATORY AND OCEAN MONITORING UPDATE GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND This update is intended to be an informational presentation, as part of a series on topics of interest to the Board of Directors. The topic for this month is the Orange County Sanitation District Environmental Services Laboratory, Monitoring, and Compliance Division (LMC): Protecting Public Health and the Environment. The work of the LMC division tends to be complex and diverse and this presentation will focus primarily on the current strategic and collaborative projects and studies. At a later date an additional presentation will be scheduled to provide an update on Compliance reporting programs. RELEVANT STANDARDS • Comply with environmental permit requirements • Listen to and seriously consider community input on environmental concerns • Operate and maintain facilities to minimize impacts on surrounding communities including odor, noise, and lighting. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A Page 1 of 2 ADMINISTRATION COMMITTEE Meeting Date 07/17/19 To Bd. of Dir. -- AGENDA REPORT Item Number 5 Item Number -- Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: INTERIM FOOD WASTE RECEIVING FACILITY, PROJECT NO. P2-124 GENERAL MANAGER'S RECOMMENDATION Informational Only. BACKGROUND California State Senate Bill (SB) 1383 requires cities to divert organics such as food waste away from landfills. This food waste, after processing, can be added to anaerobic digesters such as those operated by the Orange County Sanitation District (Sanitation District) to produce methane gas and energy. The draft Preliminary Design Report submitted in June 2019 for the Interim Food Waste Receiving Facility, Project No. P2-124, included a project viability review that verified that the project is economically justifiable based on project costs and anticipated tipping fees. Staff will give a brief update on the proposed facility and the project viability review. RELEVANT STANDARDS • Maintain and adhere to appropriate internal planning documents (Biosolids Master Plan) • Use all practical and effective means for resource recovery PRIOR COMMITTEE/BOARD ACTIONS September 2018 - Approved a Professional Design Services Agreement with Kennedy/Jenks Consultants to provide engineering design services for Interim Food Waste Receiving Facility, Project No. P2-124, for an amount not to exceed $695,000, and approved a contingency of $69,500 (10%). ADDITIONAL INFORMATION The Biosolids Master Plan evaluated the feasibility of receiving pre-processed food waste. It concluded the costs to construct and operate the facilities and handle the additional biosolids production could be offset by tipping fees charged to food waste processors and additional power associated with increased digester gas production. Page 2 of 2 Due to the fact that the Biosolids Master Plan also recommended replacement of the digester complex, an interim food waste facility was recommended until a more permanent facility can be constructed in 10 to 15 years when the designated space would become available following demolition of existing digesters. The interim food waste receiving station will consist of prefabricated storage tanks, mixing and transfer pumps, and piping to the digesters. CEQA This project was covered under the Biosolids Master Plan Program Environmental Impact Report, adopted by the Board on June 27, 2018. A Notice of Determination was filed on September 27, 2018, after Board approval of the Professional Design Services Agreement. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A JGD:dm:gc 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.