HomeMy WebLinkAbout97.Board of Directors Orientation 2017 PowerpointFebruary 15, 2017
New Board Member
Orientation
Role of the Board Member
Presenter:
Greg Sebourn, Chairman
OCSD History and Future
Presenters:
Jim Herberg, General Manager
Bob Ghirelli, Asst. General Manager
OCSD Service Area
Orange
County
PacificOcean
ReclamationPlant No. 1
TreatmentPlant No. 2
NewportBeach
FountainValley
Santa Ana
LosAlamitos
BuenaPark
Tustin
Garden Grove
Placentia Yorba Linda
AnaheimAnaheim
Orange
La Palma
Cypress
Westminster
Irvine
Stanton
VillaPark
Costa
MesaHuntingtonBeach
SealBeach
La Habra Brea
Fullerton
396 miles of sewers
471 square miles
185 million gallons per day
2.6 million population
20 cities, 4 special districts,
& unincorporated OC
15 pumping stations
2 treatment plants
OCSD Mission and Vision
Strategic Planning
Strategic
Planning
Operational
Planning
Board
Approval of
Strategic Plan
New or Altered
Levels of Service
Goals &
Objectives
Monitoring
& Evaluation
Budget
Strategic
Planning
Process
Board
Approval of
Budget
Strategic Goals for 2014-2019
In Progress:
1.Odor Control
2.Biosolids Management
3.Energy Efficiency
4.Water Recycling
5.Workforce Planning and Development
Completed:
6. Local Sewer Transfer
7.Legislative Advocacy and Public Outreach
8. Cessation of Disinfection of Ocean Discharge
Odor Control
Biosolids
Energy Efficiency
Future Water Recycling Options
Workforce Planning & Development
Local Sewer Transfers
City Local SewerManhole
PrivateLateral
OCSDRegional Trunkline
OceanOutfallOCSDTreatmentPlants
Manhole
To OCWD
Legislative Advocacy & Public Outreach
Cessation of Disinfection Ocean Discharge
HuntingtonBeach
Newport
Beach
PLANTNO. 1
Bolsa Chica
State Beach
Crystal Cove
State Park
PLANTNO. 2
Fish Health
M/V Nerissa Oceanography
Water Quality
Board Services
Presenter:
Kelly Lore,
Clerk of the Board
Board Services Overview
INTRODUCTION OF BOARD SERVICES
What We Provide
BOD GUIDELINES & PROCEDURES
Resolution OCSD 15-27
CALENDAR OF MEETINGS
2017 Condensed Calendar
AGENDA AND OCSD INFORMATION
Agenda Packets
Communications
District Transparency Certificate of Excellence
Board Services Overview
DIRECTOR COMPENSATION
Ordinance OCSD-34
•$212.50 per
meeting/day
•6 meetings/month
•Payroll calendar
Resolution OCSD 15-06
•Expense
reimbursement &
meeting attendance
Board Services Overview
AB 1234 ETHICS TRAINING AB 1661 SEXUAL HARASSMENT
TRAINING
California law requires ethics training
be provided to their local officials.
Online training allows local officials
to satisfy the requirements of AB
1234 on a cost-free basis.
localethics.fppc.ca.gov/login.aspx
California law requires that
members of agency legislative
bodies undergo sexual harassment
training.
Monday, May 15 from 2 –4 p.m.
Thursday, May 18 from 2 –4 p.m.
Contact COB to sign up for
a date above or for online
version.
General Counsel
Presenter:
Brad Hogin, General Counsel
General Counsel
•Board Rules of Procedure
•Mandatory Ethics Training
•Mandatory Sexual Harassment Training
•Campaign Contributions (Levine Act)
•Update on Technology, the Brown Act, and Public Records
Rules for Discussion, Debate and Deliberation
Questions from
Directors
Staff Report
Motion & Second
Discussion Among Directors
Vote on Motion
Types of Motions
Main and Subsidiary Motions
Mandatory Ethics Training
•Two Hours of Training Every 2 Years
•Covers:
•Conflicts of Interest
•Receipt of Gifts
•Misuse of Agency Resources
•Bribes
•Etc.
Mandatory Sexual Harassment Training
•Sexual Harassment Training Required for “Supervisory Employees”
•Applies to Elected Officials
Levine Act
•Limits on Campaign Contributions From Parties Seeking
Approval of Entitlements
•“Entitlements” Include:
•Contracts
•Permits
•Licenses
•Exceptions: Competitively Bid and Labor Contracts
Contributions Accepted in the Past
•You Received >$250 in Contributions From a Proposed Contractor in the Last 12 Months
•The Contract is Before the Board for Approval
•You Must:
Disclose the Contribution on the Record; and
Disqualify Yourself
Contributions While a Proceeding is Pending
•OCSD Prepares an RFP
•Until 3 Months After Contract Award, You May Not:
•Solicit or Receive Contributions >$250 From Any Proposer
FPPC Enforcement of the Levine Act
•Fines From $1,000-$3,000 per Count
•Example:
•San Bernardino County Supervisor
•Appointed to the Inland Valley Development Agency
•Voted to Award Contracts to IVDA Contractors Who
Contributed to his Supervisor Campaign
•Fined $12,500 for 10 Counts
Technology and the Brown Act
•Brown Act Prohibits “Serial Meetings”
•Email Exchanges Involving a Majority of Board Members
May Be Considered Serial Meetings
•Examples:
•One Broadcast Email to All Members, with
Responses
•“Hub & Spoke” –One Member Exchanges Emails with a Majority
•“Daisy Chain” –Emails are Forwarded Among a
Majority of Members
A Sanitation District Board Member is accused of
wrongdoing.
Where does this story appear in the newspaper ?
After a comprehensive, six-month investigation by a blue-ribbon panel, the Board Member is completely cleared of
any wrongdoing.
Where does this story appear in the newspaper?
OCSD Financials
Presenter:
Lorenzo Tyner, Director of Finance and Administrative Services
General Information
•Fiscal Year July 1 –June 30
•$400M–$500M in annual revenues & expenditures
•Approved Staffing of 627 Full-Time Equivalents (FTEs)
Revenues FY 16-17 FY 17-18
Budget Summary
Fees and Charges $331 M (76%)$340 M (76%)
General Income $ 96 M (22%)$100 M (23%)
Other $ 8 M ( 2%)$ 6 M ( 1%)
Total Revenues $435 M $446 M
Operating $146 M (31%)$150 M (40%)
CIP/RRR $171 M (36%)$138 M (37%)
Debt Service $ 87 M (18%)$ 83 M (22%)
Other $ 6 M ( 1%)$ 4 M ( 1%)
Liability Reduction $ 65 M (14%)$ 0 M ( 0%)
Total Outlays $475 M $375 M
Outlays FY 16-17 FY 17-18
Major Revenue Components
Include Fees/Charges
and General Income
Fees & Charges
$340 M
76%
General
Income
$99 M
23%
Other
$7 M1%
Proposed Revenues
FY 17-18 = $446 Million
Most OCSD Revenue is Related to User Fees
Approved
FY 17-18
General User Fees $ 291 M
Permit User Fees $ 12 M
Assessments $ 19 M
Capital Fac. Capacity Charges $ 18 M
Total Fees & Charges $ 340 M
Company Fee % of TotalHouse Foods America $1,137,028 0.36%Kimberly-Clark Worldwide 1,123,748 0.36%Stremicks Heritage Foods 735,840 0.23%Pulmuone Wildwood 667,744 0.21%M C P Foods Inc.649,886 0.21%Jazz Semiconductor 541,379 0.17%Ameripec Inc.494,287 0.16%Nor-Cal Beverage 453,737 0.14%Van Law Food Products 446,942 0.14%
Nor-Cal Beverage (NCB) 409,575 0.13%Top Ten Total Fees & Charges $6,660,166 2.12%
Ten Largest Industrial Users
Represent only 2% of OCSD User Fees
Rate Increases HaveDropped Significantly
0%
2%
4%
6%
8%
10%
12%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Fee Increase History -Percent
Rates Will Remain Level
0
50
100
150
200
250
300
350
400
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Single Family Residential (SFR) Fee
Comparison of Single Family Rates (July 2015)
$0
$100
$200
$300
$400
$500
$600
$700
$800
LA
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D
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$155
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$322
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$784
Property Tax Revenue will Rise with the Continuing Economic Recovery
Approved
FY 16-17 FY 17-18
Property Tax Revenue $ 87 M $ 91 M
Interest Revenue $ 9 M $ 9 M
Total General Income $ 96 M $ 100 M
Other $ 8 M $ 6 M
OCSD Outlay Categories
Approved
FY 16-17 FY 17-18
Operating Expense $ 146 M $ 150 M
CIP/RRR $ 171 M $ 138 M
Debt Service $ 87 M $ 83 M
Other $ 6 M $ 4 M
Long-Term Obligations $ 65 M $ 0 M
Total Outlays $ 475 M $ 375 M
Operating Expense Summary
Description FY 15-16 FY 16-17 FY 17-18
Approved Approved Approved
Salaries and Wages $ 94.8 M $ 89.3 M $ 90.6 M
Contractual Services 23.9 M 24.8 M 22.6 M
Operating Mat’ls & Supplies 17.2 M 16.7 M 17.4 M
Repairs and Maintenance 12.4 M 14.3 M 16.2 M
Utilities 7.8 M 8.9 M 10.2 M
Other 10.1 M 11.6 M 12.4 M
Cost Allocation -16.9 M -19.2 M -19.4 M
Net Operating Requirements $149.3 M $146.4 M $150.0 M
Percentage Increase (Decrease)(2.0%)2.4%
CIP Consists of Four Distinct Types
Approved
FY 16-17 FY 17-18
Replacement/Rehabilitation $ 97 M $ 84 M
Improved Treatment $ 32 M $ 19 M
Additional Capacity $ 45 M $ 30 M
Support $ 16 M $ 20 M
Total Outlays $ 190 M $ 153 M
CIP Program
Ten -Year Annual Outlays
(in millions)
$190
$153
$176
$222
$244
$213
$233
$245 $244
$197
$100
$120
$140
$160
$180
$200
$220
$240
$260
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Debt Financing
•Continue to issue COPs as the primary
method of financing the capital program
•No additional “new money” debt issuance is
scheduled for FY 2016-17 or 2017-18
•OCSD maintains a AAA bond rating
Stated Key Factors include:
o Strong Financial Performance
o Moderate Debt Burden
o Strong Management Practices
o Rate Discipline
No Additional Debt Issuances are
Planned
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2010 2015 2020 2025 2030 2035 2040
OUTSTANDING DEBT$100Ms
Workforce Planning and
Development
Presenter: Celia Chandler, Director of Human Resources
Organizational Overview
ADMINISTRATION UNITS
General Manager’s Office
•15 Positions
Human Resources & Risk Mgmt
•27 Positions
Administrative Services
•99 Positions
OPERATING UNITS
Operations & Maintenance
•279 Positions
Engineering
•116 Positions
Environmental Services
•91 Positions
Total Number of Authorized Full-Time Employees: 627
OCSDWorkforce
OCSD Workforce
31%
55%
0%
10%
20%
30%
40%
50%
60%
State of California OCSD
Education Level -Bachelor's Degree or Higher
Recognized Labor Unions
Orange County Employees
Association
International Union of Operating
Engineers - Local 501
Supervisory & Professional
Management Group
Unrepresented
SPMG
43%501
33%
OCEA
18%
Unrepresented
6%
Retirement Eligibility
2016 & 2019
Workforce Strategy
Planning Development
Workforce Planning
•Workforce Vulnerability Assessments
•Staffing Levels
•Talent Readiness Assessment
•Succession Planning
Workforce Development
•Individual Development Plans
•Division Development Plans
•Leadership Development
•Internship Program
•Employee Development Program
Summary
•Focusing on critical/key positions
•Addressing current and future staffing needs
•Evaluating changing work requirements
•Strengthening existing levels of service
•Preparing employees for future service requirements
•Establishing a plan and roadmap to ensure workforce
sustainability
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