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HomeMy WebLinkAbout01-24-2018 Board Meeting Agenda Packet01/24/2018 OCSD Board of Directors’ Agenda Page 1 of 5 AGENDA CALL TO ORDER INVOCATION AND PLEDGE OF ALLEGIANCE (Tim Shaw, City of La Habra) ROLL CALL (Clerk of the Board) 1.RECEIVE AND FILE MINUTE EXCERPTS OF MEMBER AGENCIES RELATING TO APPOINTMENTS TO THE ORANGE COUNTY SANITATION DISTRICTBOARD OF DIRECTORS (Clerk of the Board) AGENCY DIRECTOR ALT. DIRECTOR Anaheim Brea Fountain Valley Fullerton Huntington Beach Irvine La Palma Los Alamitos Newport Beach Stanton Tustin Yorba Linda Water District Denise Barnes Glenn Parker Steve Nagel Greg Sebourn Mike Posey Donald Wagner Peter Kim Richard Murphy Scott Peotter Dave ShawverAllan Bernstein Phil Hawkins Lucille Kring Cecilia Hupp Cheryl Brothers Jesus Silva Erik Peterson Lynn Schott Marshall Goodman Warren Kusumoto Brad Avery Carol Warren Chuck Puckett Brooke Jones DECLARATION OF QUORUM (Clerk of the Board) PUBLIC COMMENTS: If you wish to address the Board of Directors 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 wish to speak. Speakers will be recognized by the Chairperson and are requested to limit comments to three minutes. SPECIAL PRESENTATIONS: •Employee Service Awards Orange County Sanitation District Regular Meeting of the BOARD OF DIRECTORS Wednesday, January 24, 2018 6:00 P.M. Board Room 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 01/24/2018 OCSD Board of Directors’ Agenda Page 2 of 5 REPORTS: The Board Chairperson and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Board of Directors, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 2. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve the minutes of the Special Board of Directors Meeting and Regular Meeting of the Board of Directors both held on December 20, 2017. 3. PAYMENT OF ANNUAL OCEAN DISCHARGE PERMIT FEES (Jim Colston) RECOMMENDATION: Approve payment in an amount not to exceed $525,537 to the State Water Resources Control Board for the annual National Pollutant Discharge Elimination System (NPDES) (ocean discharge) permit fees. RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the Board Chair. 4. COMMITTEE MINUTES (Clerk of the Board) RECOMMENDATION: Receive and file the approved minutes of the following committees: A. GWRS Steering Committee Meeting of July 10, 2017 B. Steering Committee Meeting of November 15, 2017 5. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF DECEMBER 2017 (Lorenzo Tyner) RECOMMENDATION: Receive and file the report of the Investment Transactions for the month of December 2017. OPERATIONS COMMITTEE: None. ADMINISTRATION COMMITTEE: None. LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE: None. 01/24/2018 OCSD Board of Directors’ Agenda Page 3 of 5 STEERING COMMITTEE: 6. LABOR COMPLIANCE PROGRAM MANUAL AND RESOLUTION (Rob Thompson) RECOMMENDATION: Adopt Resolution No. OCSD 18-01, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District to Approve and Adopt the Labor Compliance Policies and Procedures Manual Dated January 24, 2018 to be Utilized During the Construction of Grant Funded Projects”. 7. RESTRUCTURING OF GENERAL MANAGER’S OFFICE (Jim Herberg) RECOMMENDATION: A. Create a second Assistant General Manager position with responsibility for the Operations and Maintenance (O&M) and Engineering Departments; and appoint one of the existing department heads to assume these additional responsibilities, while maintaining their current responsibilities; and B. Upon the retirement of the existing Assistant General Manager, appoint one of the existing department heads to that position, overseeing the Finance & Administrative Services and Environmental Services departments. The resulting department head vacancy will remain unfilled. 8. GENERAL MANAGER’S FY 2017-2018 WORK PLAN MID-YEAR UPDATE (Jim Herberg) RECOMMENDATION: Receive and File the General Manager’s Fiscal Year 2017-2018 Work Plan Mid-Year Update and Cost Savings Measures Memo. AB 1234 DISCLOSURE REPORTS: This item allows Board members to provide a brief oral report regarding the disclosure of outside committees, conferences, training, seminars, etc. attended at the Agency’s expense, per Government Code §53232.3(d). 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. 01/24/2018 OCSD Board of Directors’ Agenda Page 4 of 5 (1) CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8) Property: 18350 Mt. Langley St. Fountain Valley, CA APN Nos. 156-154-08 and 156-163-17 10950 Virginia Cir. Fountain Valley, CA - APN No.156-165-05; 10870 Spencer Ave. Fountain Valley, CA - APN No.156-163-07; 18480 Pacific St. Fountain Valley, CA - APN No.156-165-04; 18430 Pacific St. Fountain Valley, CA - APN No.156-165-06; 18370 Pacific St. Fountain Valley, CA - APN No.156-165-08; 18429 Pacific St. Fountain Valley, CA - APN No.156-163-09; 18410 Bandilier Cir. Fountain Valley, CA - APN No.156-163-10; 18368 Bandilier Cir. Fountain Valley, CA - APN No.156-163-11; 10700 Spencer St. Fountain Valley, CA - APN No.156-163-16; 10700 Spencer Ave. Fountain Valley, CA - APN No.156-154-07; 18386 Mt. Langley St. Fountain Valley, CA - APN No.156-154-06; 18385 Bandilier Cir. Fountain Valley, CA - APN No.156-163-12; 18401 Bandilier Cir. Fountain Valley, CA - APN No.156-163-13; 18424 Mt. Langley St. Fountain Valley, CA - APN No.156-154-05; 18435 Bandilier Cir. Fountain Valley, CA - APN No.156-163-14; 18475 Bandilier Cir. Fountain Valley, CA - APN No.156-163-15; 10725 Ellis Ave. Fountain Valley, CA - APN No.156-154-04; and 10540 Talbert Ave. Fountain Valley, CA - APN No.156-151-03 Agency negotiators: General Manager, Jim Herberg; Assistant General Manager, Bob Ghirelli; Director of Finance and Administrative Services, Lorenzo Tyner; Director of Engineering, Rob Thompson; Engineering Managers, Kathy Millea and Jeff Mohr; CIP Project Manager, Tom Grant; Kevin Turner and John Gallivan, Cushman and Wakefield. Negotiating parties: K & A Investments LP, APN Nos. 156-154-08 & 156-163-17 Valley Business Park, APN Nos. 156-165-05, 156-165-06, 156-163-07; DK-USA LLC, APN No.156-165-04; Fountain Valley Industrial Parcel 13, APN No.156-165-08; Sukut Real Properties LLC, APN Nos. 156-163-09, 156-163-10, 156-163-11; The Ins Trust Shabtai, Nevon, APN No. 156-163-16; The Ins Trust, APN No. 156-154-07; Fountain Valley Star LLC, APN No. 156-154-06; TN Sheet Metal Inc., APN No. 156-163-12; 18401 Bandilier LLC, APN No. 156-163-13; Phone Lilly Lin-Lin TR, APN No. 156-154-05; JDK Partners, APN No. 156-163-14; Chandler Real Properties, APN No. 156-163-15; Ellis Avenue LLC, APN No. 156-154-04; and SFII Fountain Valley LLC, APN No. 156-151-03 Under negotiation: Instruction to negotiator will concern price and terms of payment. 01/24/2018 OCSD Board of Directors’ Agenda Page 5 of 5 RECONVENE IN REGULAR SESSION. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: Adjourn the Board meeting until the Regular Meeting of the Board of Directors on February 28, 2018 at 6:00 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, and on the Sanitation District’s website at www.ocsd.com, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A. Lore Clerk of the Board (714) 593-7433 klore@ocsd.com For any questions on the agenda, Committee members may contact staff at: General Manager Jim Herberg (714) 593-7300 jherberg@ocsd.com Assistant General Manager Bob Ghirelli (714) 593-7400 rghirelli@ocsd.com Director of Engineering Rob Thompson (714) 593-7310 rthompson@ocsd.com Director of Environmental Services Jim Colston (714) 593-7450 jcolston@ocsd.com Director of Finance and Administrative Services Director of Human Resources Lorenzo Tyner Celia Chandler (714) 593-7550 (714) 593-7202 ltyner@ocsd.com cchandler@ocsd.com Director of Operations & Maintenance Ed Torres (714) 593-7080 etorres@ocsd.com 12/20/2017 Minutes of Board Meeting Page 1 of 3 Orange County Sanitation District MINUTES SPECIAL BOARD MEETING December 20, 2017 Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 ITEM NO. 2 12/20/2017 Minutes of Board Meeting Page 2 of 3 ROLL CALL A Special meeting of the Board of Directors of the Orange County Sanitation District was called to order by Administration Committee Chairman Chad Wanke on December 20, 2017, at 3:04 p.m., in the Administration Building. The Clerk of the Board declared a quorum was present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X Gregory Sebourn, Chair Jesus Silva X Denise Barnes Lucille Kring X Allan Bernstein Chuck Puckett X Robert Collacott Diana Fascenelli X Ellery Deaton Sandra Massa-Lavitt Barbara Delgleize Erik Peterson James M. Ferryman Bob Ooten Phil Hawkins X Brooke Jones Steven Jones Kris Beard Peter Kim Gerard Goedhart X Al Krippner X Charlie Nguyen X Richard Murphy Warren Kusumoto Steve Nagel Cheryl Brothers Glenn Parker Cecilia Hupp X Scott Peotter Brad Avery X Tim Shaw Michael Blazey David Shawver Carol Warren Fred Smith Virginia Vaughn Teresa Smith Mark Murphy Michelle Steel Shawn Nelson Sal Tinajero David Benavides Donald Wagner Lynn Schott X Chad Wanke Ward Smith X John Withers Douglas Reinhart Mariellen Yarc Stacy Berry STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Jim Colston, Director of Environmental Services; Ed Torres, Director of Operations and Maintenance; Rob Thompson, Director of Engineering; Lorenzo Tyner, Director of Finance & Administrative Services; Kelly Lore, Clerk of the Board; Jennifer Cabral; Tanya Chong and Tina Knapp. OTHERS PRESENT: Scott Barnes 12/20/2017 Minutes of Board Meeting Page 3 of 3 PUBLIC COMMENTS: None. WELCOME & OPENING REMARKS: General Manager James D. Herberg welcomed the Directors and distributed a 2017 Board Tour Guide Map. TOUR: Director of Engineering Rob Thompson and Director of Operations and Maintenance Ed Torres departed with the tour group at 3:10 p.m. which proceeded to the following: Plant No. 2: The tour visited the central generation system and discussed future planned engine rebuilds - these engines are vitally important as they produce about 2/3 of the energy utilized on-site by our facilities. The current demolition and abandonment work and the current construction of the Ocean Outfall System Rehabilitation project, which includes rehabilitating the 84 and 120-inch pipelines that travel along the Santa Ana River trail, were viewed. This project will also modify the Ocean Outfall Booster Station wet well and junction boxes to accommodate lower flows to the ocean due to the Groundwater Replenishment System final expansion (this portion of the project is scheduled to begin next year). Plant No. 1: The tour visited the Sludge Dewatering and Odor Control facility which includes the new Centrifuges. This project will reduce the overall cost of processing and hauling our daily production of biosolids. ADJOURNMENT: At 4:30 p.m. the Special Board Meeting was adjourned until the Regular Board Meeting on December 20, 2017 at 6:00 p.m. ____________________________ Kelly A. Lore, CMC Clerk of the Board 12/20/2017 Minutes of Board Meeting Page 1 of 13 Orange County Sanitation District MINUTES BOARD MEETING December 20, 2017 Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 12/20/2017 Minutes of Board Meeting Page 2 of 13 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was called to order by Board Chairman Greg Sebourn on December 20, 2017, at 6:01 p.m., in the Administration Building. Director Donald Wagner delivered the invocation and led the Pledge of Allegiance. 1. RECEIVED AND FILED MINUTE EXCERPTS OF MEMBER AGENCIES RELATING TO APPOINTMENTS TO THE ORANGE COUNTY SANITATION DISTRICT BOARD OF DIRECTORS (Clerk of the Board) AGENCY DIRECTOR ALT. DIRECTOR Cypress Mariellen Yarc Stacy Berry Midway City Sanitary District Charlie Nguyen Al Krippner (effective 1/1/18) La Habra Tim Shaw Michael Blazey The Clerk of the Board declared a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X Gregory Sebourn, Chair Jesus Silva X Denise Barnes Lucille Kring X Allan Bernstein Chuck Puckett X Robert Collacott Diana Fascenelli X Ellery Deaton Sandra Massa-Lavitt Barbara Delgleize X Erik Peterson X James M. Ferryman Bob Ooten X Phil Hawkins Brooke Jones Steven Jones X Kris Beard X Peter Kim Gerard Goedhart X Al Krippner Charlie Nguyen X Richard Murphy Warren Kusumoto X Steve Nagel Cheryl Brothers Glenn Parker X Cecilia Hupp X Scott Peotter Brad Avery X Tim Shaw Michael Blazey A David Shawver (excused absence) Carol Warren X Fred Smith Virginia Vaughn Teresa Smith X Mark Murphy A Michelle Steel Shawn Nelson A Sal Tinajero David Benavides X Donald Wagner Lynn Schott X Chad Wanke Ward Smith X John Withers Douglas Reinhart X Mariellen Yarc Stacy Berry 12/20/2017 Minutes of Board Meeting Page 3 of 13 STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Bob Ghirelli, Assistant General Manager; Celia Chandler, Director of Human Resources; Ed Torres, Director of Operations & Maintenance; Rob Thompson, Director of Engineering; Jim Colston, Director of Environmental Services; Lorenzo Tyner, Director of Finance & Administrative Services; Kelly Lore, Clerk of the Board; Angela Brandt; Jennifer Cabral; Mike Dorman; Dean Fisher; Al Garcia; Tom Grant; Randy Kleinman; Tina Knapp; Rebecca Long; Kathy Millea; Jeff Mohr; Andrew Nau; Tyler Ramirez; Jim Spears; Richard Spencer; and Paula Zeller. OTHERS PRESENT: Brad Hogin (General Counsel); Alternate Directors Cheryl Brothers (Fountain Valley), Charlie Nguyen (MCSD), and Bob Ooten (CMSD); Special Counsel to OCSD Roger Cerda (Alston & Bird) and Daniel Fears (Payne & Fears); and Robert Danko, General Counsel for Aseptic. PUBLIC COMMENTS: Chair Sebourn stated that Mr. Robert Danko, General Counsel for Aseptic Technologies, LLC, will speak prior to Item No. 22. No other public comments were provided. SPECIAL PRESENTATIONS: None. REPORTS: Chair Sebourn reported on the recent OCSD and SAWPA joint policy committee which met on December 13 at OCSD. He stated that OCSD’s project manager, Hardat Khublall, was recognized by SAWPA for his assistance in the successful completion of the SARI Line project. General Manager Herberg stated that OCSD Administrative Offices will be closed in observance of the holidays on December 25th and 26th, and January 1st; Committees will be dark in January; and the Steering Committee and Board of Directors next meeting will be held on January 24, 2018. Mr. Herberg announced that an informational survey for the Board of Directors and OCSD’s 2017 Annual Report were included in the Director’s folders. He also stated to please “Save the Date” of Thursday, Feb. 15 and Friday, Feb. 16 for the GWRS 10th Anniversary celebration where an attempt to set a Guinness World Record for water recycling will take place. Mr. Herberg stated that notification had been received by the U.S. Bureau of Reclamation that OCSD has been selected to receive a $1.3 million grant for the expansion of the GWRS under the Water Infrastructure Improvements under Title 16. Chair Sebourn also stated that a holiday gift of an umbrella was provided to each Board Member as thanks for their dedication to OCSD. 12/20/2017 Minutes of Board Meeting Page 4 of 13 CONSENT CALENDAR: 2. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve the minutes of the Regular Meeting of the Board of Directors held on November 15, 2017 as corrected. AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins; Kim; Krippner; R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: Beard (Alternate); Hupp (Alternate); and M. Murphy (Alternate) ABSENT: Shawver; Steel; and Tinajero RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the Board Chair. 3. COMMITTEE MINUTES (Clerk of the Board) Received and filed the approved minutes of the following committees: A. Steering Committee Meeting of October 25, 2017 B. Operations Committee Meeting of November 1, 2017 C. Administration Committee Meeting of November 8, 2017 D. Legislative & Public Affairs Committee Meeting of November 13, 2017 4. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF NOVEMBER 2017 (Lorenzo Tyner) Received and filed the report of the Investment Transactions for the month of November 2017. OPERATIONS COMMITTEE: 5. ANNUAL CCTV CONTRACT WITH FOUR ADDITIONAL RENEWALS TO COMPLY WITH SSMP REQUIREMENTS (Ed Torres) MOVED, SECONDED, AND DULY CARRIED TO: A. Award Service Contracts for annual CCTV Sewer Inspection Services to two (2) contractors; Hoffman Southwest Corp. (Primary) and Performance Pipeline Technologies (Secondary), for a total amount not to exceed $350,000 for the period February 1, 2018 through January 31, 2019, with four (4) one-year renewal options; and B. Approve a contingency of $35,000 (10%). 12/20/2017 Minutes of Board Meeting Page 5 of 13 AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero 6. FLEET VEHICLE PROCUREMENT THROUGH COOPERATIVE PROCUREMENT WITH NATIONAL AUTO FLEET GROUP (Ed Torres) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve the purchase of ten (10) vehicles as listed below using the National Joint Powers Alliance (NJPA) cooperative Contract Number 120716-NAF with National Auto Fleet Group for a total amount not to exceed $286,809 in accordance with Ordinance No. OCSD-47, Section 2.03(B), Cooperative Purchases: 1. Five (5) new/unused 2018 Ford F-150 (X1C) XL 2WD SuperCab 8’ Box $149,813.49; 2. Three (3) new/unused 2018 Ford C-Max Hybrid (P5A) SE FWD $79,040.79; 3. One (1) new/unused 2018 Ford Fusion Energi (P0P) SE FWD $32,667.96; 4. One (1) new/unused 2018 Ford Transit Connect Van (S6E) XL SWB with Rear Symmetrical Doors $25,286.82; and B. Approve a contingency of $7,170 (2.5%). AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: M. Murphy (Alternate) ABSENT: Shawver; Steel; and Tinajero 7. PURCHASE OF SIX VAPEX SENTINEL S4 UNITS (Ed Torres) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a sole source Purchase Order to VAPEX ENVIRONMENTAL TECHNOLOGIES for six VAPEX Sentinel S4 units (three units for Plant No. 1 and three units for Plant No. 2) for a total amount not to exceed $290,636; and B. Approve a contingency of $14,532 (5%). 12/20/2017 Minutes of Board Meeting Page 6 of 13 AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero 8. TIFFANY PUMP STATION ODOR CONTROL FACILITY (Ed Torres) MOVED, SECONDED, AND DULY CARRIED TO: Approve a Site Access and License Agreement with the Garden Grove Sanitary District (GGSD) to allow utilization of an odor control chemical dosing station and injection of chemicals into the Miller-Holder Interceptor at 12782 Bailey Street in the city of Garden Grove, in a form approved by Special Counsel. AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero 9. SAFETY IMPROVEMENTS PROGRAM, PROJECT NO. J-126 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Award a Construction Contract to AMTEK Construction for the Safety Improvements Program, Contract No. J-126 A and H, for a total amount not to exceed $452,757; and B. Approve a contingency of $45,276 (10%). AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero 12/20/2017 Minutes of Board Meeting Page 7 of 13 10. EDINGER PUMP STATION REHABILITATION STUDY (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Services Agreement with Lockwood, Andrews & Newnam, Inc., to provide engineering services for the Edinger Pump Station Rehabilitation Study, Project No. PS15-02, for an amount not to exceed $505,042; and B. Approve a contingency of $50,504 (10%). AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero 11. 2017 FACILITIES MASTER PLAN (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 17-16 entitled, “A Resolution of the Board of Directors of the Orange County Sanitation District Adopting the 2017 Facilities Master Plan as the Orange County Sanitation District’s New Master Plan for Future Capital Planning and Repealing Resolution No. OCSD 09-18.” AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero ADMINISTRATION COMMITTEE: 12. 2017 BENEFITS PROGRAM – ONE-TIME FUND REALLOCATION (Celia Chandler) MOVED, SECONDED, AND DULY CARRIED TO: Approve a one-time reallocation of budgeted funds in the amount of $195,000 to be transferred to group health insurance benefits resulting in a total cost of $12,032,187. The reallocation would not result in an increase to the overall 2017 budget. 12/20/2017 Minutes of Board Meeting Page 8 of 13 AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero 13. ENTERPRISE ASSET MANAGEMENT PHASE IV - LOCK OUT TAG OUT (LOTO) (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Services Agreement with Total Resource Management, Inc. for IBM-Maximo Enterprise Asset Management Phase IV - Lock Out Tag Out (LOTO) Software, Specification No. S-2017- 871BD, for a total amount not to exceed $188,318; and B. Approve a contingency in the amount of $37,664 (20%). C. AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero 14. RIGHT OF WAY AND PROPERTY MANAGEMENT SERVICES (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Consultant Services Agreement with Paragon Partners Ltd. for Right of Way and Property Management Services, Specification No. CS-2017-879, for the period January 1, 2018 through December 31, 2018, for a total annual amount not to exceed $115,000, with two (2) six-month renewal options; and B. Approve a contingency of $11,500 (10%). AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None 12/20/2017 Minutes of Board Meeting Page 9 of 13 ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero 15. INVEST AND/OR REINVEST DISTRICT’S FUNDS (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 17-17, entitled “A Resolution of the Board of Directors of the Orange County Sanitation District, Authorizing the District’s Treasurer to Invest and/or Reinvest District’s Funds; Adopting District’s Investment Policy Statement and Performance Benchmarks; and Repealing Resolution No. OCSD 16-19.” AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero 16. ALLIANT INSURANCE SERVICES (Celia Chandler) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Consultant Services Agreement with Alliant Insurance Services, Inc. to act as Broker of Record for the Orange County Sanitation District’s assets and operations insurance coverages, Specification No. CS-2017-884-BD, for the period of January 1, 2018 through December 31, 2018 with up to four (4) one-year renewal options; and B. No direct payment from the Sanitation District is provided. The Broker of Record, Alliant Insurance Services, will be compensated through commission that is paid directly by the insurance carriers. AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero 12/20/2017 Minutes of Board Meeting Page 10 of 13 17. ORANGE COUNTY SANITATION DISTRICT WASTEWATER REVENUE PROGRAM RATE STUDY (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Orange County Sanitation District’s 2017 Wastewater Revenue Program Rate Study completed by Carollo Engineers. AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero 18. PROPOSITION 218 NOTIFICATIONS (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Direct staff to prepare and mail Proposition 218 compliant notifications to affected property owners outlining a five-year regional sewer service fee schedule with annual increases of approximately 1.2 percent over the next five fiscal years beginning with Fiscal Year 2018-19. AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE: 19. LEGISLATIVE/REGULATORY PLAN AND YEAR-END REVIEW (Bob Ghirelli) MOVED, SECONDED, AND DULY CARRIED TO: Approve the Orange County Sanitation District 2018 Legislative and Regulatory Plan. AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero 12/20/2017 Minutes of Board Meeting Page 11 of 13 STEERING COMMITTEE: 20. ADOPTION OF UPDATED RESOLUTION ON RULES OF PROCEDURE (Bob Ghirelli) MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 17-18, entitled, “A Resolution of the Board of Directors of Orange County Sanitation District Establishing Rules of Procedure for the Conduct of Business of the District, and Repealing Resolution No. OCSD 17-08.” AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero 21. DISTRICT 6 TRUNK SEWER RELIEF, PROJECT NO. 6-17 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Approve a contingency increase of $369,930 (10%) to the construction contract with Charles King Co., Inc. for District No. 6 Trunk Sewer Relief, Project No. 6-17, for a total amount not to exceed $739,860 (20%). AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero Item No. 22 pulled and heard separately. 22. DEFERRED PAYMENT AGREEMENT REQUEST FOR CHARGES AND FEES OWED BY ONE INDUSTRIAL WASTEWATER DISCHARGE PERMITTEE (Lorenzo Tyner) Mr. Robert Danko, General Counsel for Aseptic spoke in favor of the Steering Committee’s recommendation. MOVED, SECONDED, AND DULY CARRIED TO: Deny the request for a 3rd deferred payment agreement for charges and fees owed for sanitary sewer service charges from Aseptic Technology, LLC. 12/20/2017 Minutes of Board Meeting Page 12 of 13 Negotiate a resolution whereby the permit for Aseptic Technology, LLC will be extended for 90 days in order for Aseptic to become current with their payments, subject to receiving acceptable security as approved by General Counsel and Staff. AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Nagel; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Shawver; Steel; and Tinajero NON-CONSENT: None. AB 1234 REPORTS: Director Ferryman provided information regarding his recent attendance at the National Water Research Institute (NWRI) meeting. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.8 & 54956.9(d)(1): The Board convened in closed session at 6:16 p.m. to discuss five items. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. Director Nagel recused himself on Item CS-2 and was not in attendance during the discussion and vote. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 6:33 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin provided the following report: MOVED, SECONDED, AND DULY CARRIED TO: A. Authorize the General Manager to approve the appraisal of the properties owned by Sukut Real Properties LLC (Sukut) at 18429 Pacific St., 18368 12/20/2017 Minutes of Board Meeting Page 13 of 13 Bandilier, and 18410 Bandilier Cir. in the City of Fountain Valley, CA, by certifying the appraised value constitutes just compensation for the property; B. Authorize an offer for the Sukut properties of $16,120,000; and C. Authorize the General Manager to provide up to $5,000 to Sukut for purposes of an independent appraisal. AYES: Barnes; Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Hupp (Alternate); Kim; Krippner; M. Murphy (Alternate); R. Murphy; Peotter; Peterson (Alternate); Sebourn; Shaw; F. Smith; Wagner; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Nagel (Recusal); Shawver; Steel; and Tinajero OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Chair Sebourn wished everyone happy holidays. ADJOURNMENT: At 6:35 p.m., Chair Sebourn adjourned the meeting until the Regular Meeting of the Board of Directors to be held on January 24, 2018 at 6:00 p.m. Submitted by: ____________________________ Kelly A. Lore, CMC Clerk of the Board Page 1 of 2 BOARD OF DIRECTORS Meeting Date -- To Bd. of Dir. 01/24/18 AGENDA REPORT Item Number -- Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: James Colston, Director of Environmental Services SUBJECT: PAYMENT OF ANNUAL OCEAN DISCHARGE PERMIT FEES GENERAL MANAGER'S RECOMMENDATION Approve payment in an amount not to exceed $525,537 to the State Water Resources Control Board for the annual National Pollutant Discharge Elimination System (NPDES) (ocean discharge) permit fees. BACKGROUND To maintain legal authority to discharge to the Pacific Ocean via the long and short outfall systems, the Orange County Sanitation District (Sanitation District) must pay annual permit fees to the State Water Resources Control Board as required by Sections 13260 and 13269 of the California Water Code. RELEVANT STANDARDS • California Water Code Sections 13260 & 13269 • NPDES Discharge and NPDES Pretreatment TIMING CONCERNS If the permit fees are not paid in a timely manner, the Sanitation District may be subject to late fees. RAMIFICATIONS OF NOT TAKING ACTION If the permit fees are not paid, the Sanitation District would be subject to penalties under provision of the Water Code Section 13261. In addition to the fee or other actions deemed appropriate by the Regional Board, these actions could include daily penalties. PRIOR COMMITTEE/BOARD ACTIONS This fee is invoiced and paid annually. ADDITIONAL INFORMATION N/A Page 2 of 2 CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. (Budget Update FY2017-18, Line item: Page 43, Operating Expense, Other). ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A JC:rc:bg:pe MINUTES OF THE MEETING GROUNDWATER REPLENISHMENT SYSTEM STEERING COMMITTEE Monday, July 10, 2017 OCSD Director Sebourn called the Groundwater Replenishment System Steering Committee meeting to order in the Boardroom at the District office. Following the Pledge of Allegiance to the flag, the Secretary called the roll and reported a quorum. Committee Members Greg Sebourn -Chair Roger Yoh -Vice Chair James Ferryman Cathy Green Steve Jones (Absent) Phil Anthony Alternates Donald Wagner Phil Hawkins Tim Shaw Denis Bilodeau (Absent) James Vanderbilt (Absent) Dina Nguyen (Absent) OCWD Staff Mike Markus Bill Dunivin, Mehul Patel Christina Fuller, Assistant District Secretary CONSENT CALENDAR OCSD Staff Jim HerberQ Rebecca Long The Consent Calendar was approved upon motion by Director Anthony, seconded by Director Green and carried [6-0] as follows. [Yes -Sebourn, Yoh, Ferryman, Green, Anthony, Wagner/No -OJ 1. Minutes of Previous Meeting The minutes of the GWRS Steering Committee meeting held April 10, 2017 are approved as presented. INFORMATIONAL ITEMS 2. GWRS Operations Update Executive Director of Operations/GWRS Bill Dunivin reported that the average daily average production for the quarter April through June 2017 was 88.58 mgd. He stated OCSD staff is working to optimize flow availability while OCWD staff is working on operational strategies to make as much water as possible. He reported that the GWRS treatment plant has been operating satisfactorily. 3. Update on GWRS Final Expansion GWRS Program Manager Sandy Scott-Roberts stated staff is evaluating design firm consultants for the Final Expansion. She reported that OCWD is planning on recommending issuing an agreement to one of the two top ranked firms (Black & Veatch; Brown and Caldwell/COM Smith) for the design of the GWRS Final Expansion Project at the July 19, 2017 Board of Directors meeting. ITEM NO. 4 4. Quarterly Outreach Report [April -June] 20171 Director of Public Affairs Eleanor Torres stated the report and media clips are included in the packet. 5. Update on Outreach for GWRS Water Bottling and the 10 Year Anniversary of the GWRS Ms . Torres reminded the Committee that in January 2017, OCWD and OCSD approved an outreach program related to the bottling of GWRS water and the commemoration of the 10th anniversary of the GWRS that would take place February 2017 through March 2018. She reviewed program objectives and recent activities. Ms . Torres reported that staff created an exhibit booth for statewide tabling events that mimic a traditional lemonade stand and created a media kit and box to ship to selected media. She updated the Committee on the next phase of outreach. Director Anthony requested staff return to the committee with ideas for non-traditional options for commemoration of the GWRS anniversary. Principal Communications Specialist Gina Ayala updated the Committee on recent GWRS media coverage. 6. Water Conservation Potential at Brea, Carbon Canyon and Fullerton Dams Recharge Planning Manager Adam Hutchinson reported that staff conducted site visits of each dam to evaluate potential for storm water capture and recharge. Mr. Hutchinson reviewed the construction date along with the safety ratings and annual average outflow for each dam. ADJOURNMENT There being no further business to come before the Committee, the meeting was adjourned at 6:00 p.m. 2 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, November 15, 2017 at 5:00 p.m. A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Board Vice-Chairman Shawver on Wednesday, November 15, 2017 at 5:03 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: David Shawver, Board Vice-Chair Chad Wanke, Administration Committee Chair John Withers, Operations Committee Chair Ellery Deaton, Member-At-Large Tim Shaw, Member-At-Large COMMITTEE MEMBERS ABSENT: Greg Sebourn, Board Chair Donald Wagner, Member-At-Large PUBLIC COMMENTS: No public comments were provided. REPORTS: Vice-Chair Shawver did not provide a report. STAFF PRESENT: Jim Herberg, General Manager Bob Ghirelli, Assistant General Manager Celia Chandler, Director of Human Resources Rob Thompson, Director of Engineering Ed Torres, Director of Operations & Maintenance Lorenzo Tyner, Director of Finance & Administrative Services Kelly Lore, Clerk of the Board Jennifer Cabral Al Garcia Tina Knapp Kathy Millea Jeff Mohr Tyler Ramirez Jim Spears OTHERS PRESENT: Brad Hagin, General Counsel Mark Panny, Carollo Engineers Pierce Rossum, Carollo Engineers General Manager Jim Herberg did not provide a report. 11/15/2017 Steering Committee Minutes Page 1 of 3 CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Steering Committee held on October 25, 2017. AYES: NOES: ABSTENTIONS: ABSENT: Deaton; Shaw; Shawver; and Wanke None None Sebourn, Wagner and Withers 2. REIMBURSEMENT AGREEMENT WITH ORANGE COUNTY FLOOD CONTROL DISTRICT FOR LANE CHANNEL PROJECT, PROJECT NO. FE16·11 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve a Reimbursement Agreement with the Orange County Flood Control District for the protection of the Von Karman Trunk Sewer in the City of Irvine, for an amount not to exceed $414, 167. AYES: NOES: ABSTENTIONS: ABSENT: NON.CONSENT: Deaton; Shaw; Shawver; and Wanke None None Sebourn, Wagner and Withers 3. STRATEGIC PLAN UPDATE (Bob Ghirelli) Assistant General Manager Bob Ghirelli provided a short informational presentation regarding the item. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve the 2017 Strategic Plan Update. AYES: NOES: ABSTENTIONS: ABSENT: Deaton; Shaw; Shawver; and Wanke None None Sebourn, Wagner and Withers Director Withers arrived at 5:07 p.m. 11/15/2017 Steering Committee Minutes Page 2 of 3 INFORMATION ITEMS: 4, ORANGE COUNTY SANITATION DISTRICT RATE PROGRAM (Lorenzo Tyner) Director of Finance & Administrative Services Lorenzo Tyner distributed a handout, provided an informative PowerPoint presentation, and responded to questions regarding the Rate Program including: preparation and analysis of the comparison of rates, general and industrial user fees, capital facilities capacity charges and supplemental capital facilities capacity charges, rebates and refunds, and provided a schedule of the implementation of the rate program approval process. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.8 & 54956.9(d)(1 ): The Committee convened in closed session at 5:26 p.m. to discuss one item. Item No. CS-2 was not heard. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Committee reconvened in regular session at 5:43 p.m . CONSIDERATION OF ACTION1 IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hagin did not provide a report. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Vice-Chairman Shawver declared the meeting adjourned at 5:45 p.m. to the next Steering Committee meeting to be held on Wednesday, December 20, 2017 at 5:00 p.m. 11/15/2017 Steering Committee Minutes Page 3 of 3 Page 1 of 1 BOARD OF DIRECTORS Meeting Date -- To Bd. of Dir. 01/24/18 AGENDA REPORT Item Number -- Item Number 5 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF DECEMBER 2017 GENERAL MANAGER'S RECOMMENDATION Receive and file the report of the Investment Transactions for the month of December 2017. BACKGROUND The CA Government Code requires that a monthly report of investment transactions be provided to the legislative body. Attached is the monthly report of investment transactions for the month ended December 31, 2017. RELEVANT STANDARDS • CA Government Code Section 53607 PRIOR COMMITTEE/BOARD ACTIONS N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) is included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Report of the Investment Transactions for the month ended December 31, 2017 U.S. Bank Transaction History 12/01/2017 Thru 12/31/2017 Post Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss ACQUISITIONS 12/01/2017 808513AJ4 PURCHASED PAR VALUE OF CHARLES SCHWAB CORP 2.200% 7/25/18 /PERSHING LLC/930,000 PAR VALUE AT 100.198 % 930,000.0000 1.001980 (931,841.40) 931,841.40 - 12/01/2017 3137EAEA3 PURCHASED PAR VALUE OF F H L M C M T N 0.750% 4/09/18 /PERSHING LLC/800,000 PAR VALUE AT 99.78 % 800,000.0000 0.997800 (798,240.00) 798,240.00 - 12/01/2017 912828P20 PURCHASED PAR VALUE OF U S TREASURY NT 0.750% 1/31/18 /BMO CAPITAL MARKETS CORP/BONDS/5,000,000 PAR VALUE AT 99.921875 % 5,000,000.0000 0.999219 (4,996,093.75) 4,996,093.75 - 12/01/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 3,974,019.8000 1.000000 (3,974,019.80) 3,974,019.80 - 12/04/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 4,467.5900 1.000000 (4,467.59) 4,467.59 - 12/04/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,179.6000 1.000000 (2,179.60) 2,179.60 - 12/05/2017 084664BE0 PURCHASED PAR VALUE OF BERKSHIRE HATH 5.400% 5/15/18 /FTN FINANCIAL SECURITIES/XNYS 1,000,000 PAR VALUE AT 101.625 % 1,000,000.0000 1.016250 (1,016,250.00) 1,016,250.00 - 12/05/2017 17275RAU6 PURCHASED PAR VALUE OF CISCO SYSTEMS INC 1.650% 6/15/18 /US BANCORP INVESTMENTS INC./1,000,000 PAR VALUE AT 100.015 % 1,000,000.0000 1.000150 (1,000,150.00) 1,000,150.00 - 12/05/2017 58933YAG0 PURCHASED PAR VALUE OF MERCK CO INC 1.300% 5/18/18 /BONY/TORONTO DOMINION SECURITI/1,000,000 PAR VALUE AT 99.888 % 1,000,000.0000 0.998880 (998,880.00) 998,880.00 - 12/05/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 473,314.4400 1.000000 (473,314.44) 473,314.44 - 12/05/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,011,040.0000 1.000000 (2,011,040.00) 2,011,040.00 - 12/06/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,026,250.0000 1.000000 (1,026,250.00) 1,026,250.00 - 12/07/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 30,818.0700 1.000000 (30,818.07) 30,818.07 - 12/08/2017 3137EAEK1 PURCHASED PAR VALUE OF F H L M C M T N 1.875% 11/17/20 /MORGAN STANLEY & CO. LLC/3,500,000 PAR VALUE AT 99.654 % 3,500,000.0000 0.996540 (3,487,890.00) 3,487,890.00 - 12/08/2017 45950KBX7 PURCHASED PAR VALUE OF INTL FINANCE CORP 0.875% 6/15/18 /WELLS FARGO SECURITIES, LLC/500,000 PAR VALUE AT 99.603 % 500,000.0000 0.996030 (498,015.00) 498,015.00 - 12/11/2017 313385SM9 PURCHASED PAR VALUE OF F H L B DISC NTS 1/31/18 /JEFFERIES LLC/2,300,000 PAR VALUE AT 99.81866652 % 2,300,000.0000 0.998187 (2,295,829.33) 2,295,829.33 - 12/11/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 37,500.0000 1.000000 (37,500.00) 37,500.00 - 12/12/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 43,750.0000 1.000000 (43,750.00) 43,750.00 - 12/13/2017 45950KBX7 PURCHASED PAR VALUE OF INTL FINANCE CORP 0.875% 6/15/18 /GOLDMAN SACHS & CO. LLC/2,000,000 PAR VALUE AT 99.635 % 2,000,000.0000 0.996350 (1,992,700.00) 1,992,700.00 - 12/14/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 28,125.0000 1.000000 (28,125.00) 28,125.00 - 1 of 11 U.S. Bank Transaction History 12/01/2017 Thru 12/31/2017 Post Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/15/2017 69372BAP5 PURCHASED PAR VALUE OF PACCAR FINANCIAL CORP C P 1/23/18 /MLPFS INC/FIXED INCOME/1,500,000 PAR VALUE AT 99.84291667 % 1,500,000.0000 0.998429 (1,497,643.75) 1,497,643.75 - 12/15/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,025,937.5000 1.000000 (1,025,937.50) 1,025,937.50 - 12/15/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,210,595.8200 1.000000 (2,210,595.82) 2,210,595.82 - 12/15/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 655,758.8800 1.000000 (655,758.88) 655,758.88 - 12/18/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 856.5200 1.000000 (856.52) 856.52 - 12/18/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,262.5400 1.000000 (1,262.54) 1,262.54 - 12/19/2017 02665KBN6 PURCHASED PAR VALUE OF AMERICAN HONDA FINANCE C P 2/22/18 /MIZUHO SECURITIES USA FXD INC/1,000,000 PAR VALUE AT 99.72375 % 1,000,000.0000 0.997238 (997,237.50) 997,237.50 - 12/19/2017 912828VE7 PURCHASED PAR VALUE OF U S TREASURY NT 1.000% 5/31/18 /BMO CAPITAL MARKETS CORP/BONDS/3,000,000 PAR VALUE AT 99.796875 % 3,000,000.0000 0.997969 (2,993,906.25) 2,993,906.25 - 12/19/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,004,527.8200 1.000000 (2,004,527.82) 2,004,527.82 - 12/19/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 99,755.1400 1.000000 (99,755.14) 99,755.14 - 12/20/2017 313385SL1 PURCHASED PAR VALUE OF F H L B DISC NTS 1/30/18 /CITIGROUP GLOBAL MARKETS INC./3,600,000 PAR VALUE AT 99.85308333 % 3,600,000.0000 0.998531 (3,594,711.00) 3,594,711.00 - 12/20/2017 4581X0BZ0 PURCHASED PAR VALUE OF INTER AMERN DEV BK 0.875% 3/15/18 /J.P. MORGAN SECURITIES LLC/3,000,000 PAR VALUE AT 99.868 % 3,000,000.0000 0.998680 (2,996,040.00) 2,996,040.00 - 12/20/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 66,405,289.0000 1.000000 (66,405,289.00) 66,405,289.00 - 12/20/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 54,000,000.0000 1.000000 (54,000,000.00) 54,000,000.00 - 12/20/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,083.3800 1.000000 (2,083.38) 2,083.38 - 12/21/2017 06538CAX9 PURCHASED PAR VALUE OF BANK OF TOKYO MITSUBIS C P 1/31/18 /MUFG UNION BK NA/MMI/PIMS/IPA/2,000,000 PAR VALUE AT 99.817778 % 2,000,000.0000 0.998178 (1,996,355.56) 1,996,355.56 - 12/21/2017 313385SM9 PURCHASED PAR VALUE OF F H L B DISC NTS 1/31/18 /GOLDMAN SACHS & CO. LLC/10,000,000 PAR VALUE AT 99.8536528 % 10,000,000.0000 0.998537 (9,985,365.28) 9,985,365.28 - 12/21/2017 313385SM9 PURCHASED PAR VALUE OF F H L B DISC NTS 1/31/18 /NOMURA SECURITIES INTERNATIONA/1,600,000 PAR VALUE AT 99.85308312 % 1,600,000.0000 0.998531 (1,597,649.33) 1,597,649.33 - 12/21/2017 313385SM9 PURCHASED PAR VALUE OF F H L B DISC NTS 1/31/18 /NOMURA SECURITIES INTERNATIONA/600,000 PAR VALUE AT 99.85308333 % 600,000.0000 0.998531 (599,118.50) 599,118.50 - 12/21/2017 880590SD7 PURCHASED PAR VALUE OF T V A DISC NTS 1/23/18 /BONY/TORONTO DOMINION SECURITI/10,000,000 PAR VALUE AT 99.8835833 % 10,000,000.0000 0.998836 (9,988,358.33) 9,988,358.33 - 2 of 11 U.S. Bank Transaction History 12/01/2017 Thru 12/31/2017 Post Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/21/2017 880590SD7 PURCHASED PAR VALUE OF T V A DISC NTS 1/23/18 /BONY/TORONTO DOMINION SECURITI/8,000,000 PAR VALUE AT 99.88358337 % 8,000,000.0000 0.998836 (7,990,686.67) 7,990,686.67 - 12/22/2017 313385RR9 PURCHASED PAR VALUE OF F H L B DISC NTS 1/11/18 /JEFFERIES LLC/4,750,000 PAR VALUE AT 99.92944442 % 4,750,000.0000 0.999294 (4,746,648.61) 4,746,648.61 - 12/22/2017 313385RR9 PURCHASED PAR VALUE OF F H L B DISC NTS 1/11/18 /JEFFERIES LLC/4,750,000 PAR VALUE AT 99.92944442 % 4,750,000.0000 0.999294 (4,746,648.61) 4,746,648.61 - 12/22/2017 313385RX6 PURCHASED PAR VALUE OF F H L B DISC NTS 1/17/18 /JEFFERIES LLC/1,000,000 PAR VALUE AT 99.907556 % 1,000,000.0000 0.999076 (999,075.56) 999,075.56 - 12/22/2017 313385RZ1 PURCHASED PAR VALUE OF F H L B DISC NTS 1/19/18 /NOMURA SECURITIES INTERNATIONA/2,100,000 PAR VALUE AT 99.90122238 % 2,100,000.0000 0.999012 (2,097,925.67) 2,097,925.67 - 12/22/2017 46623EKD0 PURCHASED PAR VALUE OF JPMORGAN CHASE MTN 1.700% 3/01/18 /BONY/TORONTO DOMINION SECURITI/1,000,000 PAR VALUE AT 99.978 % 1,000,000.0000 0.999780 (999,780.00) 999,780.00 - 12/22/2017 912828UU2 PURCHASED PAR VALUE OF U S TREASURY NT 0.750% 3/31/18 /BMO CAPITAL MARKETS CORP/BONDS/5,000,000 PAR VALUE AT 99.8203126 % 5,000,000.0000 0.998203 (4,991,015.63) 4,991,015.63 - 12/22/2017 912828VE7 PURCHASED PAR VALUE OF U S TREASURY NT 1.000% 5/31/18 /WELLS FARGO SECURITIES, LLC/5,000,000 PAR VALUE AT 99.796875 % 5,000,000.0000 0.997969 (4,989,843.75) 4,989,843.75 - 12/22/2017 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 37,500.0000 1.000000 (37,500.00) 37,500.00 - 12/26/2017 313385RZ1 PURCHASED PAR VALUE OF F H L B DISC NTS 1/19/18 /BMO CAPITAL MARKETS CORP/BONDS/10,000,000 PAR VALUE AT 99.9153333 % 10,000,000.0000 0.999153 (9,991,533.33) 9,991,533.33 - 12/26/2017 313385SM9 PURCHASED PAR VALUE OF F H L B DISC NTS 1/31/18 /GOLDMAN SACHS & CO. LLC/3,000,000 PAR VALUE AT 99.8715 % 3,000,000.0000 0.998715 (2,996,145.00) 2,996,145.00 - 12/26/2017 3137EADP1 PURCHASED PAR VALUE OF F H L M C 0.875% 3/07/18 /GOLDMAN SACHS & CO. LLC/2,000,000 PAR VALUE AT 99.9026 % 2,000,000.0000 0.999026 (1,998,052.00) 1,998,052.00 - 12/26/2017 912828Q45 PURCHASED PAR VALUE OF U S TREASURY NT 0.875% 3/31/18 /JEFFERIES LLC/8,000,000 PAR VALUE AT 99.859375 % 8,000,000.0000 0.998594 (7,988,750.00) 7,988,750.00 - 12/26/2017 912828M80 PURCHASED PAR VALUE OF U S TREASURY NT 2.000% 11/30/22 /J.P. MORGAN SECURITIES LLC/8,000,000 PAR VALUE AT 98.84375 % 8,000,000.0000 0.988438 (7,907,500.00) 7,907,500.00 - 12/27/2017 912828S68 PURCHASED PAR VALUE OF U S TREASURY NT 0.750% 7/31/18 /WELLS FARGO SECURITIES, LLC/5,000,000 PAR VALUE AT 99.5039062 % 5,000,000.0000 0.995039 (4,975,195.31) 4,975,195.31 - 3 of 11 U.S. Bank Transaction History 12/01/2017 Thru 12/31/2017 Post Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/27/2017 912828Q45 PURCHASED PAR VALUE OF U S TREASURY NT 0.875% 3/31/18 /GOLDMAN SACHS & CO. LLC/5,000,000 PAR VALUE AT 99.8554688 % 5,000,000.0000 0.998555 (4,992,773.44) 4,992,773.44 - 12/28/2017 313385SE7 PURCHASED PAR VALUE OF F H L B DISC NTS 1/24/18 /GOLDMAN SACHS & CO. LLC/6,225,000 PAR VALUE AT 99.90512498 % 6,225,000.0000 0.999051 (6,219,094.03) 6,219,094.03 - 12/28/2017 912828H37 PURCHASED PAR VALUE OF U S TREASURY NT 0.875% 1/15/18 /MORGAN STANLEY & CO. LLC/5,000,000 PAR VALUE AT 99.9882812 % 5,000,000.0000 0.999883 (4,999,414.06) 4,999,414.06 - 12/29/2017 40428HPR7 PURCHASED PAR VALUE OF HSBC USA INC 2.350% 3/05/20 /CITIGROUP GLOBAL MARKETS INC./1,250,000 PAR VALUE AT 99.96 % 1,250,000.0000 0.999600 (1,249,500.00) 1,249,500.00 - 12/29/2017 912828L99 PURCHASED PAR VALUE OF U S TREASURY NT 1.375% 10/31/20 /GOLDMAN SACHS & CO. LLC/4,500,000 PAR VALUE AT 98.34765622 % 4,500,000.0000 0.983477 (4,425,644.53) 4,425,644.53 - 12/29/2017 912828L57 PURCHASED PAR VALUE OF U S TREASURY NT 1.750% 9/30/22 /GOLDMAN SACHS & CO. LLC/10,000,000 PAR VALUE AT 97.9414063 % 10,000,000.0000 0.979414 (9,794,140.63) 9,794,140.63 - TOTAL ACQUISITIONS 287,980,031.1000 (287,436,672.91) 287,436,672.91 - DISPOSITIONS 12/01/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,738,109.0700 1.000000 1,738,109.07 (1,738,109.07) - 12/01/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -5,008,627.7200 1.000000 5,008,627.72 (5,008,627.72) - 12/08/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -500,117.4300 1.000000 500,117.43 (500,117.43) - 12/11/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,295,829.3300 1.000000 2,295,829.33 (2,295,829.33) - 12/13/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,001,352.7800 1.000000 2,001,352.78 (2,001,352.78) - 12/15/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,497,643.7500 1.000000 1,497,643.75 (1,497,643.75) - 12/19/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -997,237.5000 1.000000 997,237.50 (997,237.50) - 12/20/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -3,002,967.0800 1.000000 3,002,967.08 (3,002,967.08) - 12/21/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -24,166,847.0000 1.000000 24,166,847.00 (24,166,847.00) - 12/22/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,997,453.8500 1.000000 10,997,453.85 (10,997,453.85) - 12/22/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -5,745,724.1700 1.000000 5,745,724.17 (5,745,724.17) - 12/26/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,996,145.0000 1.000000 2,996,145.00 (2,996,145.00) - 12/26/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -10,008,831.3800 1.000000 10,008,831.38 (10,008,831.38) - 12/27/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -9,993,729.0900 1.000000 9,993,729.09 (9,993,729.09) - 12/28/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -5,019,149.1100 1.000000 5,019,149.11 (5,019,149.11) - 12/08/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -3,492,082.7100 1.000000 3,492,082.71 (3,492,082.71) - 4 of 11 U.S. Bank Transaction History 12/01/2017 Thru 12/31/2017 Post Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/21/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -7,833,700.3600 1.000000 7,833,700.36 (7,833,700.36) - 12/22/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -6,844,574.2800 1.000000 6,844,574.28 (6,844,574.28) - 12/26/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -7,877,531.2300 1.000000 7,877,531.23 (7,877,531.23) - 12/26/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -9,991,533.3300 1.000000 9,991,533.33 (9,991,533.33) - 12/28/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -6,219,094.0300 1.000000 6,219,094.03 (6,219,094.03) - 12/29/2017 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -15,531,941.0700 1.000000 15,531,941.07 (15,531,941.07) - 12/15/2017 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C #786064 2.762% 1/01/28 NOVEMBER FHLMC DUE 12/15/17 -16.7600 0.000000 16.76 (16.35) 0.41 12/15/2017 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.269% 8/15/32 -1,278.9500 0.000000 1,278.95 (1,280.29) (1.34) 12/26/2017 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -6,628.7400 8.573104 6,628.74 (7,507.05) (878.31) 12/26/2017 31371NUC7 PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 NOVEMBER FNMA DUE 12/25/17 -155.2800 0.000000 155.28 (164.22) (8.94) 12/26/2017 31376KT22 PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 NOVEMBER FNMA DUE 12/25/17 -1,801.5800 0.000000 1,801.58 (1,936.70) (135.12) 12/26/2017 31381PDA3 PAID DOWN PAR VALUE OF F N M A #466397 3.400% 11/01/20 NOVEMBER FNMA DUE 12/25/17 -686.8500 0.000000 686.85 (671.99) 14.86 12/26/2017 31403DJZ3 PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 NOVEMBER FNMA DUE 12/25/17 -3,018.0300 0.000000 3,018.03 (3,244.38) (226.35) 12/26/2017 31403GXF4 PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 NOVEMBER FNMA DUE 12/25/17 -728.8800 0.000000 728.88 (783.55) (54.67) 12/26/2017 31406PQY8 PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 NOVEMBER FNMA DUE 12/25/17 -879.7500 0.000000 879.75 (945.73) (65.98) 12/26/2017 31406XWT5 PAID DOWN PAR VALUE OF F N M A #823358 3.296% 2/01/35 NOVEMBER FNMA DUE 12/25/17 -483.6000 0.000000 483.60 (479.82) 3.78 12/26/2017 31407BXH7 PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 NOVEMBER FNMA DUE 12/25/17 -663.0400 0.000000 663.04 (712.77) (49.73) 12/26/2017 31410F4V4 PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 NOVEMBER FNMA DUE 12/25/17 -6,403.1300 0.000000 6,403.13 (6,883.37) (480.24) 12/26/2017 3138EG6F6 PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 NOVEMBER FNMA DUE 12/25/17 -310.8600 0.000000 310.86 (328.76) (17.90) 12/26/2017 31417YAY3 PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 NOVEMBER FNMA DUE 12/25/17 -391.7400 0.000000 391.74 (414.30) (22.56) 12/26/2017 31397QRE0 PAID DOWN PAR VALUE OF F N M A GTD REMIC 1.113% 2/25/41 -5,709.8400 9.952797 5,709.84 (5,708.06) 1.78 12/20/2017 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I I #080023 2.250% 12/20/26 NOVEMBER GNMA DUE 12/20/17 -191.6500 0.000000 191.65 (194.82) (3.17) 5 of 11 U.S. Bank Transaction History 12/01/2017 Thru 12/31/2017 Post Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/20/2017 36225CC20 PAID DOWN PAR VALUE OF G N M A I I #080088 2.625% 6/20/27 NOVEMBER GNMA DUE 12/20/17 -222.5700 0.000000 222.57 (227.44) (4.87) 12/20/2017 36225CNM4 PAID DOWN PAR VALUE OF G N M A I I #080395 2.625% 4/20/30 NOVEMBER GNMA DUE 12/20/17 -159.8700 0.000000 159.87 (158.42) 1.45 12/20/2017 36225CN28 PAID DOWN PAR VALUE OF G N M A I I #080408 2.625% 5/20/30 NOVEMBER GNMA DUE 12/20/17 -410.0400 0.000000 410.04 (405.88) 4.16 12/20/2017 36225DCB8 PAID DOWN PAR VALUE OF G N M A I I #080965 2.750% 7/20/34 NOVEMBER GNMA DUE 12/20/17 -670.3300 0.000000 670.33 (669.91) 0.42 12/18/2017 3837H4NX9 PAID DOWN PAR VALUE OF G N M A GTD REMIC 1.764% 2/16/30 -825.9700 0.000000 825.97 (825.97) - 12/15/2017 43814QAC2 PAID DOWN PAR VALUE OF HONDA AUTO 1.390% 4/15/20 -45,753.5400 2.449612 45,753.54 (45,752.65) 0.89 12/21/2017 43814TAB8 PAID DOWN PAR VALUE OF HONDA AUTO 1.420% 7/22/19 -155,299.2900 0.000000 155,299.29 (155,295.58) 3.71 12/18/2017 477877AD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.070% 11/15/18 CMO FINAL PAYDOWN -99,755.1400 0.000010 99,755.14 (99,801.90) (46.76) 12/15/2017 47788NAB4 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.090% 2/15/19 -231,197.4300 0.000000 231,197.43 (231,183.33) 14.10 12/15/2017 47788MAC4 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.360% 4/15/20 -148,838.2600 10.069393 148,838.26 (148,814.83) 23.43 12/15/2017 47787XAB3 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.500% 10/15/19 -10,836.5100 0.000000 10,836.51 (10,836.47) 0.04 12/15/2017 65478WAB1 PAID DOWN PAR VALUE OF NISSAN AUTO 1.070% 5/15/19 -147,210.2400 0.000000 147,210.24 (147,204.44) 5.80 12/15/2017 654747AB0 PAID DOWN PAR VALUE OF NISSAN AUTO 1.470% 1/15/20 -107,470.2700 0.000000 107,470.27 (107,469.72) 0.55 12/15/2017 89236WAC2 PAID DOWN PAR VALUE OF TOYOTA AUTO 1.120% 2/15/19 -147,236.8200 0.761212 147,236.82 (147,214.56) 22.26 12/13/2017 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -1144.0000 UNITS DECREASE TO ADJUST FOR CHANGE IN CPI -1,144.0000 0.000000 - - - 12/27/2017 912828WU0 PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -3536.0000 UNITS DECREASE TO ADJUST FOR CHANGE IN CPI -3,536.0000 0.000000 - - - 12/01/2017 060505DP6 MATURED PAR VALUE OF BANK OF AMERICA 5.750% 12/01/17 3,800,000 PAR VALUE AT 100 % -3,800,000.0000 1.000000 3,800,000.00 (4,334,014.00) (534,014.00) 12/05/2017 166764AA8 MATURED PAR VALUE OF CHEVRON CORP 1.104% 12/05/17 2,000,000 PAR VALUE AT 100 % -2,000,000.0000 1.000000 2,000,000.00 (1,988,600.00) 11,400.00 12/05/2017 313385QC3 MATURED PAR VALUE OF F H L B DISC NTS 12/05/17 3,500,000 PAR VALUE AT 100 % -3,500,000.0000 1.000000 3,497,876.67 (3,497,876.67) - 12/19/2017 313385QS8 MATURED PAR VALUE OF F H L B DISC NTS 12/19/17 5,000,000 PAR VALUE AT 100 % -5,000,000.0000 1.000000 4,994,312.50 (4,994,312.50) - 12/06/2017 369604BC6 MATURED PAR VALUE OF GENERAL ELECTRIC CO 5.250% 12/06/17 1,000,000 PAR VALUE AT 100 % -1,000,000.0000 1.000000 1,000,000.00 (1,033,650.00) (33,650.00) 12/15/2017 458140AL4 MATURED PAR VALUE OF INTEL CORP 1.350% 12/15/17 1,000,000 PAR VALUE AT 100 % -1,000,000.0000 1.000000 1,000,000.00 (1,000,160.00) (160.00) 6 of 11 U.S. Bank Transaction History 12/01/2017 Thru 12/31/2017 Post Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/15/2017 458140AL4 MATURED PAR VALUE OF INTEL CORP 1.350% 12/15/17 2,000,000 PAR VALUE AT 100 % -2,000,000.0000 1.000000 2,000,000.00 (2,008,280.00) (8,280.00) TOTAL DISPOSITIONS -163,190,136.2300 163,177,645.40 (163,744,247.70) (566,602.30) OTHER TRANSACTIONS 12/13/2017 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -1144.00 UNITS DECREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 - - - 12/27/2017 912828WU0 BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -3536.00 UNITS DECREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 - - - 12/20/2017 CASH RECEIPT RECD FROM UNION BANK A/C XXXXXX3230 INCOMING WIRES DUE Dec 1 2017 12: WIRE REC'D 12/19/17 0.0000 0.000000 54,000,000.00 - - 12/20/2017 CASH RECEIPT RECD FROM UNION BANK A/C XXXXXX3230 INCOMING WIRES DUE Jul 18 2017 12: WIRE REC'D 12/19/17 0.0000 0.000000 70,000,000.00 - - 12/13/2017 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -1144.00 UNITS DECREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 - (1,144.00) - 12/27/2017 912828WU0 FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -3536.00 UNITS DECREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 - (3,536.00) - 12/26/2017 03215PFN4 INTEREST EARNED ON AMRESCO 0.0319% 6/25/29 $1 PV ON 244.2900 SHARES DUE 12/26/2017 $0.00003/PV ON 133,743.29 PV DUE 12/26/17 0.0000 0.000000 244.29 - - 12/01/2017 060505DP6 INTEREST EARNED ON BANK OF AMERICA 5.750% 12/01/17 $1 PV ON 3800000.0000 SHARES DUE 12/1/2017 0.0000 0.000000 109,250.00 - - 12/05/2017 166764AA8 INTEREST EARNED ON CHEVRON CORP 1.104% 12/05/17 $1 PV ON 2000000.0000 SHARES DUE 12/5/2017 0.0000 0.000000 11,040.00 - - 12/15/2017 17275RAU6 INTEREST EARNED ON CISCO SYSTEMS INC 1.650% 6/15/18 $1 PV ON 1000000.0000 SHARES DUE 12/15/2017 0.0000 0.000000 8,250.00 - - 12/12/2017 313383HU8 INTEREST EARNED ON F H L B DEB 1.750% 6/12/20 $1 PV ON 5000000.0000 SHARES DUE 12/12/2017 0.0000 0.000000 43,750.00 - - 12/11/2017 313379RB7 INTEREST EARNED ON F H L B DEB 1.875% 6/11/21 $1 PV ON 4000000.0000 SHARES DUE 12/11/2017 0.0000 0.000000 37,500.00 - - 12/05/2017 313385QC3 INTEREST EARNED ON F H L B DISC NTS 12/05/17 $1 PV ON 3500000.0000 SHARES DUE 12/5/2017 3,500,000 PAR VALUE AT 100 % 0.0000 0.000000 2,123.33 - - 12/19/2017 313385QS8 INTEREST EARNED ON F H L B DISC NTS 12/19/17 $1 PV ON 5000000.0000 SHARES DUE 12/19/2017 5,000,000 PAR VALUE AT 100 % 0.0000 0.000000 5,687.50 - - 12/15/2017 31348SWZ3 INTEREST EARNED ON F H L M C #786064 2.762% 1/01/28 $1 PV ON 5.1200 SHARES DUE 12/15/2017 OCTOBER FHLMC DUE 12/15/17 0.0000 0.000000 5.12 - - 12/15/2017 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.269% 8/15/32 $1 PV ON 72.5800 SHARES DUE 12/15/2017 $0.00272/PV ON 26,641.75 PV DUE 12/15/17 0.0000 0.000000 72.58 - - 7 of 11 U.S. Bank Transaction History 12/01/2017 Thru 12/31/2017 Post Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/26/2017 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1/25/20 $1 PV ON 3188.2500 SHARES DUE 12/25/2017 $0.00354/PV ON 900,000.00 PV DUE 12/25/17 0.0000 0.000000 3,188.25 - - 12/26/2017 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43 $1 PV ON 4788.5600 SHARES DUE 12/25/2017 $0.00542/PV ON 884,040.44 PV DUE 12/25/17 0.0000 0.000000 4,788.56 - - 12/14/2017 3135G0G72 INTEREST EARNED ON F N M A 1.125% 12/14/18 $1 PV ON 5000000.0000 SHARES DUE 12/14/2017 0.0000 0.000000 28,125.00 - - 12/26/2017 31371NUC7 INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON 78.9200 SHARES DUE 12/25/2017 NOVEMBER FNMA DUE 12/25/17 0.0000 0.000000 78.92 - - 12/26/2017 31376KT22 INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON 571.8200 SHARES DUE 12/25/2017 NOVEMBER FNMA DUE 12/25/17 0.0000 0.000000 571.82 - - 12/26/2017 31381PDA3 INTEREST EARNED ON F N M A #466397 3.400% 11/01/20 $1 PV ON 999.3000 SHARES DUE 12/25/2017 NOVEMBER FNMA DUE 12/25/17 0.0000 0.000000 999.30 - - 12/26/2017 31403DJZ3 INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON 556.9600 SHARES DUE 12/25/2017 NOVEMBER FNMA DUE 12/25/17 0.0000 0.000000 556.96 - - 12/26/2017 31403GXF4 INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON 17.3600 SHARES DUE 12/25/2017 NOVEMBER FNMA DUE 12/25/17 0.0000 0.000000 17.36 - - 12/26/2017 31406PQY8 INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON 944.0500 SHARES DUE 12/25/2017 NOVEMBER FNMA DUE 12/25/17 0.0000 0.000000 944.05 - - 12/26/2017 31406XWT5 INTEREST EARNED ON F N M A #823358 3.296% 2/01/35 $1 PV ON 363.1700 SHARES DUE 12/25/2017 NOVEMBER FNMA DUE 12/25/17 0.0000 0.000000 363.17 - - 12/26/2017 31407BXH7 INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON 105.5100 SHARES DUE 12/25/2017 NOVEMBER FNMA DUE 12/25/17 0.0000 0.000000 105.51 - - 12/26/2017 31410F4V4 INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON 1082.9300 SHARES DUE 12/25/2017 NOVEMBER FNMA DUE 12/25/17 0.0000 0.000000 1,082.93 - - 12/26/2017 3138EG6F6 INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON 55.8200 SHARES DUE 12/25/2017 NOVEMBER FNMA DUE 12/25/17 0.0000 0.000000 55.82 - - 12/26/2017 31417YAY3 INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON 91.4600 SHARES DUE 12/25/2017 NOVEMBER FNMA DUE 12/25/17 0.0000 0.000000 91.46 - - 12/22/2017 3135G0D75 INTEREST EARNED ON F N M A DEB 1.500% 6/22/20 $1 PV ON 5000000.0000 SHARES DUE 12/22/2017 0.0000 0.000000 37,500.00 - - 12/26/2017 31397QRE0 INTEREST EARNED ON F N M A GTD REMIC 1.113% 2/25/41 $1 PV ON 447.6200 SHARES DUE 12/25/2017 $0.00167/PV ON 267,569.60 PV DUE 12/25/17 0.0000 0.000000 447.62 - - 12/01/2017 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 11/30/2017 INTEREST FROM 11/1/17 TO 11/30/17 0.0000 0.000000 4,467.59 - - 12/01/2017 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 11/30/2017 INTEREST FROM 11/1/17 TO 11/30/17 0.0000 0.000000 2,179.60 - - 8 of 11 U.S. Bank Transaction History 12/01/2017 Thru 12/31/2017 Post Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/20/2017 36225CAZ9 INTEREST EARNED ON G N M A I I #080023 2.250% 12/20/26 $1 PV ON 40.4500 SHARES DUE 12/20/2017 NOVEMBER GNMA DUE 12/20/17 0.0000 0.000000 40.45 - - 12/20/2017 36225CC20 INTEREST EARNED ON G N M A I I #080088 2.625% 6/20/27 $1 PV ON 54.6500 SHARES DUE 12/20/2017 NOVEMBER GNMA DUE 12/20/17 0.0000 0.000000 54.65 - - 12/20/2017 36225CNM4 INTEREST EARNED ON G N M A I I #080395 2.625% 4/20/30 $1 PV ON 19.6100 SHARES DUE 12/20/2017 NOVEMBER GNMA DUE 12/20/17 0.0000 0.000000 19.61 - - 12/20/2017 36225CN28 INTEREST EARNED ON G N M A I I #080408 2.625% 5/20/30 $1 PV ON 155.5100 SHARES DUE 12/20/2017 NOVEMBER GNMA DUE 12/20/17 0.0000 0.000000 155.51 - - 12/20/2017 36225DCB8 INTEREST EARNED ON G N M A I I #080965 2.750% 7/20/34 $1 PV ON 158.7000 SHARES DUE 12/20/2017 NOVEMBER GNMA DUE 12/20/17 0.0000 0.000000 158.70 - - 12/18/2017 3837H4NX9 INTEREST EARNED ON G N M A GTD REMIC 1.764% 2/16/30 $1 PV ON 30.5500 SHARES DUE 12/16/2017 $0.00147/PV ON 20,791.22 PV DUE 12/16/17 0.0000 0.000000 30.55 - - 12/06/2017 369604BC6 INTEREST EARNED ON GENERAL ELECTRIC CO 5.250% 12/06/17 $1 PV ON 1000000.0000 SHARES DUE 12/6/2017 0.0000 0.000000 26,250.00 - - 12/15/2017 43814QAC2 INTEREST EARNED ON HONDA AUTO 1.390% 4/15/20 $1 PV ON 2096.5800 SHARES DUE 12/15/2017 $0.00116/PV ON 1,810,000.00 PV DUE 12/15/17 0.0000 0.000000 2,096.58 - - 12/21/2017 43814TAB8 INTEREST EARNED ON HONDA AUTO 1.420% 7/22/19 $1 PV ON 1687.0200 SHARES DUE 12/21/2017 $0.00118/PV ON 1,425,652.96 PV DUE 12/21/17 0.0000 0.000000 1,687.02 - - 12/18/2017 43814PAB6 INTEREST EARNED ON HONDA AUTO 1.570% 1/21/20 $1 PV ON 1262.5400 SHARES DUE 12/18/2017 $0.00131/PV ON 965,000.00 PV DUE 12/18/17 0.0000 0.000000 1,262.54 - - 12/15/2017 458140AL4 INTEREST EARNED ON INTEL CORP 1.350% 12/15/17 $1 PV ON 1000000.0000 SHARES DUE 12/15/2017 0.0000 0.000000 6,750.00 - - 12/15/2017 458140AL4 INTEREST EARNED ON INTEL CORP 1.350% 12/15/17 $1 PV ON 2000000.0000 SHARES DUE 12/15/2017 0.0000 0.000000 13,500.00 - - 12/15/2017 45950KBX7 INTEREST EARNED ON INTL FINANCE CORP 0.875% 6/15/18 $1 PV ON 2500000.0000 SHARES DUE 12/15/2017 0.0000 0.000000 10,937.50 - - 12/15/2017 477877AD6 INTEREST EARNED ON JOHN DEERE OWNER 1.070% 11/15/18 $1 PV ON 88.9500 SHARES DUE 12/15/2017 $0.00089/PV ON 99,755.14 PV DUE 12/15/17 0.0000 0.000000 88.95 - - 12/15/2017 47788NAB4 INTEREST EARNED ON JOHN DEERE OWNER 1.090% 2/15/19 $1 PV ON 921.0900 SHARES DUE 12/15/2017 $0.00091/PV ON 1,014,040.10 PV DUE 12/15/17 0.0000 0.000000 921.09 - - 12/15/2017 47788MAC4 INTEREST EARNED ON JOHN DEERE OWNER 1.360% 4/15/20 $1 PV ON 2702.1400 SHARES DUE 12/15/2017 $0.00113/PV ON 2,384,240.14 PV DUE 12/15/17 0.0000 0.000000 2,702.14 - - 9 of 11 U.S. Bank Transaction History 12/01/2017 Thru 12/31/2017 Post Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/15/2017 47787XAB3 INTEREST EARNED ON JOHN DEERE OWNER 1.500% 10/15/19 $1 PV ON 1762.5000 SHARES DUE 12/15/2017 $0.00125/PV ON 1,410,000.00 PV DUE 12/15/17 0.0000 0.000000 1,762.50 - - 12/15/2017 47788BAB0 INTEREST EARNED ON JOHN DEERE OWNER 1.590% 4/15/20 $1 PV ON 960000.0000 SHARES DUE 12/15/2017 0.0000 0.000000 1,272.00 - - 12/15/2017 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820% 10/15/21 $1 PV ON 1023.7500 SHARES DUE 12/15/2017 $0.00152/PV ON 675,000.00 PV DUE 12/15/17 0.0000 0.000000 1,023.75 - - 12/15/2017 65478WAB1 INTEREST EARNED ON NISSAN AUTO 1.070% 5/15/19 $1 PV ON 772.0200 SHARES DUE 12/15/2017 $0.00089/PV ON 865,814.05 PV DUE 12/15/17 0.0000 0.000000 772.02 - - 12/15/2017 654747AB0 INTEREST EARNED ON NISSAN AUTO 1.470% 1/15/20 $1 PV ON 1663.7200 SHARES DUE 12/15/2017 $0.00123/PV ON 1,358,137.78 PV DUE 12/15/17 0.0000 0.000000 1,663.72 - - 12/01/2017 73358WAG9 INTEREST EARNED ON PORT AUTH NY NJ 5.309% 12/01/19 $1 PV ON 2440000.0000 SHARES DUE 12/1/2017 0.0000 0.000000 64,769.80 - - 12/15/2017 89236WAC2 INTEREST EARNED ON TOYOTA AUTO 1.120% 2/15/19 $1 PV ON 635.4700 SHARES DUE 12/15/2017 $0.00093/PV ON 680,866.36 PV DUE 12/15/17 0.0000 0.000000 635.47 - - 12/05/2017 084664BE0 PAID ACCRUED INTEREST ON PURCHASE OF BERKSHIRE HATH 5.400% 5/15/18 0.0000 0.000000 (3,000.00) - - 12/01/2017 808513AJ4 PAID ACCRUED INTEREST ON PURCHASE OF CHARLES SCHWAB CORP 2.200% 7/25/18 0.0000 0.000000 (7,161.00) - - 12/05/2017 17275RAU6 PAID ACCRUED INTEREST ON PURCHASE OF CISCO SYSTEMS INC 1.650% 6/15/18 0.0000 0.000000 (7,791.67) - - 12/26/2017 3137EADP1 PAID ACCRUED INTEREST ON PURCHASE OF F H L M C 0.875% 3/07/18 0.0000 0.000000 (5,298.61) - - 12/01/2017 3137EAEA3 PAID ACCRUED INTEREST ON PURCHASE OF F H L M C M T N 0.750% 4/09/18 0.0000 0.000000 (866.67) - - 12/08/2017 3137EAEK1 PAID ACCRUED INTEREST ON PURCHASE OF F H L M C M T N 1.875% 11/17/20 0.0000 0.000000 (4,192.71) - - 12/29/2017 40428HPR7 PAID ACCRUED INTEREST ON PURCHASE OF HSBC USA INC 2.350% 3/05/20 0.0000 0.000000 (9,302.08) - - 12/20/2017 4581X0BZ0 PAID ACCRUED INTEREST ON PURCHASE OF INTER AMERN DEV BK 0.875% 3/15/18 0.0000 0.000000 (6,927.08) - - 12/08/2017 45950KBX7 PAID ACCRUED INTEREST ON PURCHASE OF INTL FINANCE CORP 0.875% 6/15/18 0.0000 0.000000 (2,102.43) - - 12/13/2017 45950KBX7 PAID ACCRUED INTEREST ON PURCHASE OF INTL FINANCE CORP 0.875% 6/15/18 0.0000 0.000000 (8,652.78) - - 10 of 11 U.S. Bank Transaction History 12/01/2017 Thru 12/31/2017 Post Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 12/22/2017 46623EKD0 PAID ACCRUED INTEREST ON PURCHASE OF JPMORGAN CHASE MTN 1.700% 3/01/18 0.0000 0.000000 (5,241.67) - - 12/05/2017 58933YAG0 PAID ACCRUED INTEREST ON PURCHASE OF MERCK CO INC 1.300% 5/18/18 0.0000 0.000000 (613.89) - - 12/01/2017 912828P20 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.750% 1/31/18 0.0000 0.000000 (12,533.97) - - 12/22/2017 912828UU2 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.750% 3/31/18 0.0000 0.000000 (8,550.82) - - 12/27/2017 912828S68 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.750% 7/31/18 0.0000 0.000000 (15,183.42) - - 12/28/2017 912828H37 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.875% 1/15/18 0.0000 0.000000 (19,735.05) - - 12/26/2017 912828Q45 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.875% 3/31/18 0.0000 0.000000 (16,730.77) - - 12/27/2017 912828Q45 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.875% 3/31/18 0.0000 0.000000 (10,576.92) - - 12/19/2017 912828VE7 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.000% 5/31/18 0.0000 0.000000 (1,565.93) - - 12/22/2017 912828VE7 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.000% 5/31/18 0.0000 0.000000 (3,021.98) - - 12/29/2017 912828L99 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.375% 10/31/20 0.0000 0.000000 (10,084.60) - - 12/29/2017 912828L57 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.750% 9/30/22 0.0000 0.000000 (43,269.23) - - 12/26/2017 912828M80 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.000% 11/30/22 0.0000 0.000000 (11,428.57) - - 12/13/2017 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -1144.00 UNITS DECREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 - - - 12/27/2017 912828WU0 STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -3536.00 UNITS DECREASE TO ADJUST FOR CHANGE IN CPI 0.0000 0.000000 - - - 12/07/2017 525ESC0Y6 Unknown LEHMAN BRTH HLD ESC PARTIAL LIQUIDATING DISTRIBUTION @ 11.843393/PAR 0.0000 0.000000 23,686.79 (23,686.79) - 12/07/2017 525ESCIB7 Unknown LEHMAN BRTH MTN ES 0.00001% 1/24/13 PARTIAL LIQUIDATING DISTRIBUTION @ 11.885463/PAR 0.0000 0.000000 7,131.28 (7,131.28) - TOTAL OTHER TRANSACTIONS 0.0000 124,259,027.51 (35,498.07) - 11 of 11 Page 1 of 2 STEERING COMMITTEE Meeting Date 01/24/18 To Bd. of Dir. 01/24/18 AGENDA REPORT Item Number 2 Item Number 6 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: LABOR COMPLIANCE PROGRAM MANUAL AND RESOLUTION GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 18-01, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District to Approve and Adopt the Labor Compliance Policies and Procedures Manual Dated January 24, 2018 to be Utilized During the Construction of Grant Funded Projects.” BACKGROUND The Orange County Sanitation District (Sanitation District) is the recipient of two $1 million grants from the Proposition 84 Integrated Regional Water Management Program. The two awarded projects are Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1-101; and Newhope-Placentia Trunk Sewer Replacement, Project No. 2-72. The grant agreement requires the Sanitation District to ensure compliance with California Labor Code requirements including preparation and implementation of a Labor Compliance Program (LCP). While the Sanitation District’s construction contracts already require contractors and their subcontractors to comply with the California Labor Code, the Sanitation District does not have a formal and comprehensive LCP in place. In accordance with requirements of California Labor Code section 1771.5(b) and Title 8, Division 1, Chapter 8, Subchapter 4, of the California Code of Regulations, the Sanitation District must have an LCP in place approved by the California Department of Industrial Relations for all projects funded in whole or in part by Proposition 84. An LCP consists of an approved enforcement manual, regular monitoring and review of certified payroll records, audits, site visits, worker interviews, annual reports, project completion close-out reports, etc. The two awarded projects are well into construction so retroactive monitoring and reporting is necessary for full compliance. RELEVANT STANDARDS • Sound engineering and accounting practices, complying with local, State, and Federal laws Page 2 of 2 PROBLEM The Sanitation District currently does not have an approved LCP as required by State law for projects funded by Proposition 84. By not having an approved LCP, the Sanitation District is not in full compliance with State grant requirements and agreements. PROPOSED SOLUTION Implement a Labor Compliance Program for full compliance with grant requirements. TIMING CONCERNS The two projects are currently in construction, thus requiring retroactive review of records and submittal of multi-year annual reports to the Department of Industrial Relations. A delay would cause additional retroactive work to be performed, thus resulting in higher costs to be in compliance. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will be in violation of Proposition 84 grant agreement requirements and could potentially be required to refund the $2 million awarded. PRIOR COMMITTEE/BOARD ACTIONS October 2017 - Approved a Professional Service Agreement with The Solis Group for the development and implementation of a Labor Compliance Program. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted and the budget is sufficient for the recommended action. ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Resolution No. OCSD 18-01 • Labor Compliance Policies and Procedures Manual (electronic document) DC:dm OCSD 18-01-1 RESOLUTION NO. OCSD 18-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT TO APPROVE AND ADOPT THE LABOR COMPLIANCE POLICIES AND PROCEDURES MANUAL DATED JANUARY 24, 2018 TO BE UTILIZED DURING THE CONSTRUCTION OF GRANT FUNDED PROJECTS WHEREAS, on June 28, 2017, the Board of Directors adopted the Fiscal Year 2017-18 Orange County Sanitation District (Sanitation District) budget; and WHEREAS, the Sanitation District regularly applies for and receives grant funding for certain projects; and WHEREAS, the Sanitation District is required to approve and adopt a Labor Compliance Program as a condition of some State and Federal grants, whereupon the adopted Labor Compliance Program must be reviewed and approved by the California Director of Industrial Relations; and WHEREAS, the Sanitation District’s professional Consultant, The Solis Group, has prepared a Labor Compliance Policies and Procedures Manual, which encompasses the Labor Compliance Program for the Sanitation District’s grant funded projects; and WHEREAS, grant guidelines stipulate that the projects must comply with the Labor Compliance Program approved and adopted by the Orange County Sanitation District and the California Department of Industrial Relations; and WHEREAS, the Sanitation District has reviewed the Labor Compliance Policies and Procedures Manual and finds the Labor Compliance Program to be adequate to meet the requirements of grants, including Proposition 84 grants. NOW THEREFORE, the Board of Directors of the Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1: The Board of Directors hereby specifically finds that all the facts set forth in this resolution are true and correct. Section 2: The Board of Directors hereby approves and adopts the Labor Compliance Program, developed by The Solis Group, as detailed in the Labor Compliance Policies and Procedures Manual, dated January 24, 2018, to be utilized during construction of any project which includes funding by a grant. Section 3: The Clerk of the Board shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. OCSD 18-01-2 PASSED AND ADOPTED at a regular meeting of the Board of Directors held on January 24, 2018. _________________________________ Gregory C. Sebourn, PLS Board Chairman ATTEST: ___________________________ Kelly A. Lore, CMC Clerk of the Board OCSD 18-01-3 STATE OF CALIFORNIA ) ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 18-01 was passed and adopted at a regular meeting of said Board on the 24th day of January 2018, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 24th day of January 2018. Kelly A. Lore, CMC Clerk of the Board of Directors Orange County Sanitation District Page 1 of 4 STEERING COMMITTEE Meeting Date 01/24/18 To Bd. of Dir. 01/24/18 AGENDA REPORT Item Number 3 Item Number 7 Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: RESTRUCTURING OF GENERAL MANAGER’S OFFICE GENERAL MANAGER'S RECOMMENDATION A. Create a second Assistant General Manager position with responsibility for the Operations and Maintenance (O&M) and Engineering Departments; and appoint one of the existing department heads to assume these additional responsibilities, while maintaining their current responsibilities; and B. Upon the retirement of the existing Assistant General Manager, appoint one of the existing department heads to that position, overseeing the Finance & Administrative Services and Environmental Services departments. The resulting department head vacancy will remain unfilled. BACKGROUND Bob Ghirelli has announced his retirement effective August 30, 2018, having provided Orange County Sanitation District (Sanitation District) with leadership as a department head and Assistant General Manager (AGM) for nearly 20 years. Dr. Ghirelli’s retirement provides an opportunity to reevaluate our organization to improve and streamline the management structure to best position the Sanitation District for the future. The General Manager is recommending a revised organizational structure to address Dr. Ghirelli’s departure and to align with our agency’s strategic goals. With the above recommendations in place, the total number of filled Executive Management Team (EMT) positions would decrease by one. RELEVANT STANDARDS • Maintain a culture of improving efficiency • Plan for and execute succession, minimizing vacant position times PROBLEM The upcoming retirement of the AGM creates a leadership void. Additionally, as our agency’s strategic goals are now focused on infrastructure maintenance, resource recovery, and operational resiliency, our leadership structure and succession plan need to align with our capabilities and strategic priorities, while being cost effective. Page 2 of 4 PROPOSED SOLUTION Create a second AGM position to oversee O&M and Engineering Departments. Backfill the current AGM position assuming oversight of Finance & Administrative Services and Environmental Services, and hold one EMT position vacant. TIMING CONCERNS The AGM will retire August 30, 2018. The General Manager recommends implementing the proposed succession plan now to maintain leadership continuity. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District would miss the opportunity to improve and streamline our management structure. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The proposed second AGM position will lead the Engineering and O&M Departments. Overall responsibility for master planning, Capital Improvement Program (CIP) project delivery, operations, maintenance, and asset management will be under this new AGM. Given that Engineering and Maintenance have interconnected responsibilities, these divisions must be closely aligned and integrated to ensure clarity of roles and responsibilities. This proposed position will be filled from within the agency so that the total number of EMT positions will not increase. This person will continue their duties as head of their department and will also serve in the AGM capacity. Also, upon the current AGM’s, Bob Ghirelli, retirement, it is proposed that his successor oversee the Finance & Administrative Services Department and the Environmental Services Department. This AGM will have responsibility for all the Sanitation District’s finances, purchasing, contracts, information and technology functions, environmental and financial auditing, agency compliance, and other general administration functions. This change will improve coordination, alignment, efficiency and clarity of roles and responsibilities. This structure aligns with our vision for a sustainable future as we deliver on resource recovery, infrastructure rehabilitation/refurbishment/replacement, and operational resiliency. This structure also frees up the General Manager to focus more externally and Page 3 of 4 maximize interface with our Board of Directors, industry organizations, other agencies, and our influential public. Human Resources will continue to report directly to the General Manager, as it is important to ensure objectivity and fairness in employee relations and to maintain effective and productive labor relations with represented units. This direct reporting relationship also recognizes the importance of our safety programs. Below is a summary of the future direction of the Sanitation District which will be supported by this organizational structure. Keeping up with growth and delivering major improvements in level of service In the 1980's and 1990's, our service area was growing at a steady rate and so were our flows. Keeping up with ever increasing flow and loading was the focus of much of our advanced planning and capital improvements. As the 1990's rolled into the new millennium, our focus shifted to major increases in our level of service including: 1) large scale recycling through the GWRS; 2) disinfection of our ocean discharge; 3) treatment of urban runoff; 4) full secondary treatment; 5) improved odor control; 6) diversification of our biosolids recovery programs; and 7) compliance with more stringent safety codes such as NFPA 820, SCAQMD Rule 1110.2 and air toxics rules. These changes to our level of service required hundreds of millions of dollars in capital investment and long term operational changes. Looking ahead – Maintenance Mode (Six Rs) Post 2012, we are a resource recovery agency focused on maximizing the production of energy, fertilizer, and clean water from our influent flow. And, with lower flows and aging infrastructure, much of our capital improvements and ongoing operational costs will be focused on infrastructure maintenance, asset management, and resiliency. The old lines of division between CIP projects and maintenance will be less distinct as our CIP becomes more focused on rehabilitation, refurbishment, replacement, and resiliency - all while we are recovering valuable resources from our flows. Asset Management must work across department boundaries The Engineering Department focuses on planning and constructing infrastructure projects. Many of these projects rehabilitate or extend the useful life of existing facilities. The Maintenance Divisions ensure reliable operations by planning and conducting preventative maintenance and corrective repairs, as well as expanding condition based monitoring efforts to improve reliability. In doing this, the Maintenance Divisions are also extending the useful life of our facilities. Essentially, Engineering and Maintenance are ensuring that the Operations Divisions can reliably collect and process flows. To most effectively accomplish this, strong alignment between these divisions must exist to ensure clarity of roles and responsibilities. Clarity and alignment will enable us to ensure reliable operations of our facilities at the lowest lifecycle cost. Page 4 of 4 The General Manager’s intention is that the Sanitation District’s organizational structure matches our focus on safety, succession planning, asset management, resource recovery, and resiliency. CEQA N/A FINANCIAL CONSIDERATIONS The expected additional cost for the second Assistant General Manager is equivalent to a step increase, which is typical for a promotion, estimated at $12,000 per year. The estimated salary savings from holding an EMT level position vacant once the current AGM position is filled by an existing department head in FY 2018-19 is $200,000 per year. ATTACHMENTS 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 STEERING COMMITTEE Meeting Date 01/24/18 To Bd. of Dir. 01/24/18 AGENDA REPORT Item Number 4 Item Number 8 Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: GENERAL MANAGER’S FY 2017-2018 WORK PLAN MID-YEAR UPDATE GENERAL MANAGER'S RECOMMENDATION Receive and File the General Manager’s Fiscal Year 2017-2018 Work Plan Mid-Year Update and Cost Savings Measures Memo. BACKGROUND Each year, the General Manager prepares a work plan of activities to be accomplished during the fiscal year. Attached is the mid-year update for the General Manager’s FY 2017-2018 work plan. RELEVANT STANDARDS • Maintain a culture of improving efficiency • Plan for and execute succession, minimizing vacant position times • Highly qualified, well trained, motivated, and diverse workforce • Biosolids, Odor, and Energy Master Plans • Use practical and effective means for recovering energy, wastewater for reuse PRIOR COMMITTEE/BOARD ACTIONS September 2017 - Presentation of the General Manager’s FY 2017-2018 Work Plan to the Steering Committee and Board of Directors for approval. ADDITIONAL INFORMATION The General Manager’s work plan includes goals for the fiscal year. At mid-year, one out of 14 work plan items were completed and 12 items are on track to be completed by or prior to the end of the fiscal year and the deadline of the overall work plan. CEQA N/A FINANCIAL CONSIDERATIONS All items included in the General Manager’s Work Plan are budgeted in the FY 2017-2018 Budget. Page 2 of 2 ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • General Manager’s Fiscal Year 2017-2018 Work Plan Mid-Year Update • Cost Savings Measures Memo ORANGE COUNTY SANITATION DISTRICT Memorandum January 24, 2018 TO: Chairman and Members of the Board of Directors FROM: James D. Herberg, General Manager SUBJECT: General Manager’s Fiscal Year 2017-2018 Work Plan Mid-Year Update I am pleased to present the mid-year update for my Fiscal Year 2017-18 work plan. The work plan includes fourteen goals organized under five focus areas including safety and security, succession planning, resource recovery, reliability and operational resiliency. The work plan was reviewed with the Steering Committee in August 2017. 1. Safety and Security • Cyber Security: Continue efforts started in FY 2016-17 to increase investment in resources to thwart any threats and ensure operational continuity and reliability. • Implement findings of consultant report on cyber-security risks. • Build/maintain bench of qualified IT cyber-security staff. • Replace outdated switches in the industrial control system (ICS) network that are unable to support the newer, more secure, communication protocols. UPDATE: Staff completed the purchase and implementation of Varonis, a security software system, to audit file sharing in the network that serves the treatment plants as well as increase the security of all engineering laptops. Staff continues to work with the Process Control Integration (PCI) team on internal/ICS traffic flows. The teams are also researching and evaluating solutions to provide better visibility of ICS devices and when changes occur on the network. A proof of concept/pilot is underway in the test environment. Staff also continues to address the growth of cyber security threats by building and maintaining a bench of qualified cyber-security staff. This year, we reallocated staff to strengthen the overall cyber security and reliability of our organization by protecting critical business assets. We also participate in local organizations like the Southern California Alliance of Publicly Owned Treatment Works, (SCAP) Cybersecurity Committee. Page 2 The Department of Homeland Security audit identified 12 switches that have been classified as “end of life” by the manufacturer and have a severe security vulnerability. Staff ordered the Cisco replacement switches and will work with the PCI team to complete the configuration and installation. The joint PCI/IT team has agreed on a configuration and installation schedule with an estimated completion before the end of the current fiscal year. • Safety Engineering Solutions and Physical Site Security: Continue the Safety Improvement Project efforts, and implement physical site security enhancements as needed to ensure all facilities remain secure. UPDATE: The Safety Improvement Project efforts that were grouped into 18 construction projects are in various phases of completion. Four packages are in the construction phase, three packages are in the bid phase, six packages are in the design phase, four packages are in the pre-design phased and one package is in the chartering phase. All Plant No. 1 site security upgrades have been reviewed and approved by management. Plant No. 2 site security upgrades are under review and will be submitted for management approval during the 3rd quarter of the fiscal year. • Voluntary Protection Plan (VPP) Certification: Complete a full review and audit of all Safety and Health policies, and implement the new safety software module. Conduct a third-party VPP readiness assessment and draft a VPP implementation plan by June 2018. UPDATE: The new Medgate Safety Management software module is being implemented, will be completed by June 2018, and will go live in July 2018. All safety policies will be reviewed and updated during the 3rd quarter and the VPP assessment will be conducted during the 4th quarter. 2. Succession Planning • Workforce Planning and Development: Implement changes to the recruitment and selection process that continue to decrease time-to-fill. Deploy semi-annual workforce vulnerability assessments to all departments so that they can identify vulnerable positions, and leverage existing technologies to provide the organization with tools to develop and manage key talent and talent loss due to retirements. UPDATE: Further changes were made to the recruitment and selection process to continue to decrease time-to-fill. Changes include pilots for inhouse assessment scoring and the posting of positions by job family to capture more qualified applicants for other vacant positions for which they may be qualified. Human Resources staff will Page 3 schedule meetings with Department Directors in early 2018 to discuss their mid-year workforce vulnerability assessment efforts. Information from these meetings will be summarized and reported to the General Manager. • Staffing Study: Conduct a comprehensive staffing study that identifies required staffing levels and opportunities to improve organizational efficiency and effectiveness. Develop the scopes of work with all internal stakeholders for the studies and have the consultant(s) procured by June 2018. UPDATE: The scope of work for the staffing study will be completed in January 2018 and the RFP process to procure the consultant(s) will begin by June 2018. 3. Resource Recovery • Food Waste: Issue a request for proposal (RFP) for a Professional Design Services Agreement for the Interim Food Waste Receiving Facility Project. UPDATE: The RFP for a Professional Design Services Agreement for the interim Food Waste Receiving Facility Project is on schedule for advertising by the end of February 2018. 4. Reliability • New Electrical Safety Standards and Lubrication Program: 1) Develop a plan and schedule to begin implementation of changes to the preventative maintenance program, including identifying labor and resource needs, for the electrical distribution system based upon new electrical safety standards and for legacy assets not currently in the new maintenance management system (MAXIMO). 2) Develop a program and schedule for implementing a comprehensive machinery lubrication and oil analysis program for rotating equipment. UPDATE: 1) Staff identified Preventative Maintenance (PM) and Job Plan gaps and developed new Job Plans based on new standards. Staff has prepared an estimate of resource impacts and a Scope of Work (SOW) for external resources required for additional testing and preventative maintenance, and additional predictive maintenance (PdM) procedures for the electrical distribution systems based on industry and safety standards. 2) Staff has developed a SOW for an RFP to select an appropriate consultant to conduct a Lubrication Study that will develop recommendations to implement an effective District-wide lubrication program. The lubrication study will conduct a quantitative assessment, re-engineer and deploy a database of lubrication best practices on approximately 1300 lubricated rotating equipment assets. The Lubrication Study is scheduled to be completed by May 2018 Page 4 and once the finalized recommendations have been submitted, job plans and routes in MAXIMO will be setup to conduct lubrication PMs. • Fleet Business Plan: Recommend a Fleet Business Plan to the Board of Directors that will include replacement policy recommendations considering regulatory requirements, green fleet criteria and fleet best practices. UPDATE: The consultant completed a review of the current inventory and business practices including a list of business recommendations. A fleet vehicle make-up and alternative fuel strategy (with three options) will be delivered in February 2018. • Operational Resiliency: Finalize an agency-wide Continuity of Operations Plan that identifies the most critical business and operational functions that ensure the Sanitation District remains operational during a major disaster and/or emergency. Present the findings and plan to the Board of Directors no later than May 2018. UPDATE: A consultant was retained to work with staff to facilitate completion of the business continuity plan. The first training session with the consultant is scheduled for January 22nd for divisions to begin entering and populating the updated database with division specific information and actions that will constitute the plan. • Seismic: Continue the seismic study of the Sanitation District’s Plant Facilities, completing the sub-surface exploratory work and engineering analysis to develop strategies to mitigate seismic vulnerabilities. UPDATE: The seismic study of Sanitation District’s Plant Facilities is on schedule to complete the sub-surface exploratory work and geotechnical engineering analysis by June 2018. 5. Operational Optimization • Rates: Complete a comprehensive rate study to determine the proper allocation of costs among user types and a recommended future rate plan including Capital Facilities Capacity Charges and Industrial User Charges. Present a 5-year rate program for residential, commercial and industrial users for Board consideration in April 2018. UPDATE: The Rate Study was completed and presented to the Administration Committee and Board in December 2017. The Board directed staff to issue notices to parcel owners regarding the new rate program. The new rate plan is on schedule to be considered by the Board in March 2018. Page 5 • OCSD Headquarters Building: Complete the Final Concept Design for the Headquarters Complex. Complete the Preliminary Design and begin Detailed Design for the Ward and Garfield Perimeter Improvements. UPDATE: The Concept Study for the Headquarters Complex and the Preliminary Design for the Ward Street and Garfield Ave Perimeter Improvements are expected in May 2018. • Dental Amalgam Rule: Create oversight program to implement new federal dental amalgam rule by June 30, 2018. UPDATE: Dental offices within the Sanitation District’s service area must submit a Compliance Report to the Sanitation District. The program implementation to-date includes creation of a Dental Office Point Source Category website (OCSD.com/Business tab), compliance reports posted to the website, FAQ’s are 90% complete, professional groups have been contacted for stakeholder feedback and the initial notification letter has been drafted for a proposed January 2018 mailing. • National Laboratory Certification: Implement laboratory procedures and corrective measures in response to national laboratory certification audit and obtain final certification by June 2018. UPDATE: This goal is completed. In November 2017, the Sanitation District laboratory was granted full National Environmental Laboratory Accreditation after an extensive application process and on-site audit of all analytical standards and procedures. ORANGE COUNTY SANITATION DISTRICT Memorandum January 24, 2018 TO: Members of the Steering Committee FROM: James D. Herberg, General Manager SUBJECT: Cost Savings Measures As the Board of Directors prepares to consider a new rate program in 2018, I want to share with you some of the many cost saving measures implemented during the past five years. Our ratepayers want to know they are getting a good return on their investment and that we are spending their fees to produce substantial benefits. In an effort to reduce costs, our employees are always looking for innovative ways to be more resourceful and efficient while ensuring we maintain our high standard of customer service. The following list is a sample of some cost saving measures that support our overarching goal to contain costs and limit long-term liabilities to the Orange County Sanitation District (Sanitation District). FINANCIAL MANAGEMENT • Beginning in 2014, the Sanitation District issued four debt financing refunding obligations that generated a total of $67 million in net present value savings due to the lower interest rate environment. • After issuing a request for proposal of custodian banking and investment management services, we have retained new firms with an annual cost savings of $667,000. • Since paying off the Sanitation District’s Unfunded Actuarial Accrued Liability (Pension) over three years, the employer premium retirement contribution rate has decreased 72 percent since FY 2014-15. • Transitioning to an insurance risk pool with California State Association of Counties resulted in a $700,000 cost savings in comparison to the open market. • We continue to maintain a AAA bond rating. ENVIRONMENTAL SERVICES • After 12 years of certification, the Sanitation District became a Platinum Plus Graduate of the National Biosolids Partnership certification program and began the transition to our own internal set of performance standards for our Biosolids Program. This created an annual cost savings of $200,000. Page 2 • After ten years of disinfecting our ocean discharge, we worked with State and Federal regulators to cease the disinfection process, yielding an annual savings of $600,000 in chemical costs, while improving the health of marine life near the Sanitation District’s ocean outfall. WORKFORCE OPTIMIZATION • While increasing our level of treatment to meet full secondary standards, and operating and maintaining nearly $600 million in new facilities, the Sanitation District’s total authorized full-time equivalent (FTE) staffing level has decreased over the past ten years from 641 FTE in 2008-09 to 637 in 2017-18. • The Sanitation District built partnerships with local colleges to develop a Vocational Internship Program to build a pipeline of potential entry-level candidates. • To further ensure we have the right people with the right skills and abilities, we improved our recruitment process, speeding-up the time-to-fill for a vacant position and reducing the need for temporary staff and overtime. • We implemented a new performance based compensation system for Executive Management and Managers based on established goals and objectives. • We outsourced our Rideshare Program to include more accessible commute options, while increasing the average vehicle ridership and reducing air emissions. • The Incentives for Sanitation District Employee Achievement (IDEA) program provides a way for employees to submit innovative cost saving ideas that improve procedures, working conditions and work methods. The program has brought forth ideas from employees that have created over $2 million in annual savings. • Through our Building Leadership Abilities and Skills for Tomorrow (BLAST) program, we are preparing journey-level staff to take on future leadership positions, ensuring a bench of competent staff to run the Sanitation District in the future. • We are providing training – specific for first-year supervisors and staff who aspire to become supervisors – coaching and mentoring opportunities, job shadowing, professional and vocational internships, and tuition reimbursement to further ensure we have the right person, at the right time, in the right job. OPERATIONS AND MAINTENANCE • Optimization studies resulted in re-negotiation of the grit and screenings contract, cooling CenGen engines with plant water, reducing Ferric Chloride for digesters and overall peroxide usage, resulting in a cost savings of $2 million per year. • The move to full secondary treatment at the Plant No. 2 treatment facility yielded cost savings in liquid oxygen plant operations, bleach and bisulfite costs in the amount of $1 million per year. • A comprehensive energy audit found that we can save an estimated $700,000 annual savings in lighting costs within nine years. Page 3 • Implementation of cutting-edge catalytic converter technology helped to reduce emissions from the central generation engines which allowed all eight engines to operate simultaneously, creating an annual cost savings of $700,000 per year. ENGINEERING • We are nearing completion of sludge dewatering projects which will result in four less truckloads of biosolids per day yielding an ongoing savings of $3.7 million per year. • We received grant funds for several projects, reducing the cost of these projects by nearly $2.5 million: o Sludge Dewatering and Odor Control at Plant No. 1 ($1 million) o Newhope-Placentia Trunk Replacement ($1 million) o WaterSMART Grant to share with the Orange County Water District ($450,000) PLANNING FOR THE FUTURE • I am recommending organizational changes to the Steering Committee that will streamline our Executive Management Team and increase our focus on the rehabilitation and maintenance of our infrastructure, while better positioning our agency for leadership succession. 1290734.1 555 AN T O N B O U L E V A R D, SU I T E 12 0 0 C O S T A ME S A , CA 9 2 6 26 - 7 6 70 (714) 558-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: January 17, 2018 RE: Closed Session Items The Board of Directors will hold a closed session on January 24, 2018 for the purpose of conferring with its negotiators regarding the purchase of real property. The negotiating parties and properties are as follows: K & A Investments LP, APN Nos. 156-154-08 & 156-163-17; Valley Business Park, APN Nos. 156-165-05, 156-165-06, 156-163-07; DK-USA LLC, APN No.156-165- 04; Fountain Valley Industrial Parcel 13, APN No.156-165-08; Sukut Real Properties LLC, APN Nos. 156-163-09, 156-163-10, 156-163-11; The Ins Trust Shabtai, Nevon, APN No. 156-163-16; The Ins Trust, APN No. 156-154-07; Fountain Valley Star LLC, APN No. 156-154-06; TN Sheet Metal Inc., APN No. 156-163-12; 18401 Bandilier LLC, APN No. 156-163-13; Phone Lilly Lin- Lin TR, APN No. 156-154-05; JDK Partners, APN No. 156-163-14; Chandler Real Properties, APN No. 156-163-15; Ellis Avenue LLC, APN No. 156-154-04; and SFII Fountain Valley LLC, APN No. 156-151-03. The District’s negotiators are Jim Herberg, Bob Ghirelli, Lorenzo Tyner, Rob Thompson, Kathy Millea and Jeff Mohr, Tom Grant, Kevin Turner and John Gallivan, Cushman and Wakefield. Said closed session will be held pursuant to authority of California Government Code Section 54956.8. Respectfully submitted, By: ___________________________ Bradley R. Hogin, General Counsel CLOSED SESSION 1 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CIP Capital Improvement Program CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA US Environmental Protection Agency FOG Fats, Oils, and Grease gpd gallons per day GWRS Groundwater Replenishment System ICS Incident Command System IERP Integrated Emergency Response 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 & Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District OOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration PCSA Professional Consultant/Construction Services Agreement PDSA Professional Design Services Agreement POTW Publicly Owned Treatment Works ppm parts per million PSA Professional Services Agreement RFP Request For Proposal RWQCB Regional Water Quality Control Board Glossary of Terms and Abbreviations SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Interceptor SARWQCB Santa Ana Regional Water Quality Control Board SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control And Data Acquisition SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SRF Clean Water State Revolving Fund SSMP Sewer System 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 & Reuse Foundation WIFIA Water Infrastructure Finance and Innovation Act WIIN Water Infrastructure Improvements for the Nation Act WRDA Water Resources Development Act Activated sludge process – A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. Benthos – The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. Biochemical Oxygen Demand (BOD) – The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. 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. Glossary of Terms and Abbreviations 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. Levels 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. Glossary of Terms and Abbreviations 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.