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Home My WebLink About12-11-2011 Steering Committee Agenda Packet December 15, 2011 NOTICE OF MEETING STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT REGULAR MEETING—5:30 P.M. Wednesday, December 21, 2011 Administration Building 10844 Ellis Avenue Fountain Valley, California 92708 **********IMPORTANT NOTICE********** STEERING COMMITTEE MEETING WILL BE HELD AT A DIFFERENT TIME ON THE ABOVE DATE. THE MEETING WILL BEGIN AT 5:30 P.M. The Regular Meeting of the Steering Committee of the Orange County Sanitation District will be held at the above location, date and time. `OJ,z. SANl Tq T,02 = 9 Q 0 q �/WV ti �E STEERING COMMITTEE AND BOARD MEETING DATES *December 21, 2011 January 25, 2012 February 22, 2012 March 28, 2012 April 25, 2012 May 23, 2012 June 28, 2012 July 25, 2012 August 22, 2012 September 26, 2012 October 24, 2012 November 28, 2012 *Meetings being held the third Wednesday of the month. STEERING COMMITTEE (1) Roll Call: Meeting Date: December 21, 2011 Meeting Time: 5:30 p.m. Committee Members Larry Crandall, Board Chair................................................. ........... Troy Edgar, Board Vice Chair ............................................. ........... John Anderson, Administration Committee Chair................ ........... Tom Beamish, Operations Committee Chair....................... ........... JohnNielsen ....................................................................... ........... BradReese......................................................................... ........... JohnWithers.................................................................................... Others Brad Hogin, General Counsel ............................................. ........... Staff Jim Ruth, General Manager................................................... Bob Ghirelli, Assistant General Manager.................................. Jim Herberg, Assistant General Manager................................. Nick Arhontes, Director of Facilities Support Services.................... Jeff Reed, Director of Human Resources....................................... Ed Torres, Director of Operations & Maintenance....................... Lorenzo Tyner, Director of Finance & Administrative Services....... Michael Gold, Public Affairs Manager...................................... Maria Ayala, Clerk of the Board............................................... Other Staff Present Wednesday, December 21, 2011 Orange County Sanitation District oJNSV SANIrgTON 5:30 P.M. Regular Meeting of the Administration Building Steering Committee o Conference Rooms A & B 10844 Ellis Avenue Fountain Valley, CA 92708 THE (714) 593-7130 °THG EN�PO **********IMPORTANT NOTICE********** STEERING COMMITTEE MEETING WILL BE HELD AT A DIFFERENT TIME ON THE ABOVE DATE. THE MEETING WILL BEGIN AT 5:30 P.M. AGENDA DECLARATION OF QUORUM: PUBLIC COMMENTS: If you wish to speak,please complete a Speaker's Form and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: 1. Approve Minutes of the November 16, 2011 Steering Committee Meeting. ACTION ITEMS: 2. Recommend to the Board of Directors to: Adopt Resolution No. OCSD 11-XX, to Establish a Procedure to Take Final Action on Labor Agreements (Memoranda of Understanding)with Represented Employees. INFORMATION ITEMS: 3. Public Affairs Report 12/21/11 Steering Committee Agenda Page 1 of 2 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: The next Steering Committee meeting is scheduled for Wednesday,January 25, 2012, at 5:00 p.m. Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714)593- 7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley,California,not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Maria E.Ayala Clerk of the Board (714)593-7130 mayala(a)ocsd.com For any questions on the agenda, Committee members may contact staff at: General Manager Jim Ruth (714)593-7110 Iruth(@ocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 jghirelli a(�ocsd.com Assistant General Manager Jim Herberg (714)593-7300 iherberg cr ocsd.com Director of Human Resources Jeff Reed (714)593-7144 (reed a(D.ocsd.com Public Affairs Manager Michael Gold (714)593-7529 mgold(a)ocsd.com 12/21/11 Steering Committee Agenda Page 2 of 2 MINUTES STEERING COMMITTEE MEETING Orange County Sanitation District The Steering Committee meeting convened on Wednesday, November 16, 2011, at 5:08 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS STAFF PRESENT: PRESENT: Jim Ruth, General Manager Larry Crandall, Chair Bob Ghirelli, Assistant General Manager Troy Edgar, Vice-Chair Jim Herberg, Assistant General Manager John Anderson, Administration Nick Arhontes, Director of Facilities Committee Chair Support Services Tom Beamish, Operations Committee Jeff Reed, Director of Human Resources Chair Ed Torres, Director of Operations & John Nielsen Maintenance John Withers Lorenzo Tyner, Director of Finance & Administrative Services Michael Gold, Public Affairs Manager COMMITTEE MEMBERS ABSENT: Maria Ayala, Clerk of the Board Brad Reese Cindie Ambrose Sonja Morgan Ken Hernandez Alex Shaaban Rob Thompson OTHERS PRESENT: Brad Hogin, General Counsel Sharon Quirk-Silva, OCSD Board Director * * * * * * * * * * PUBLIC COMMENTS: None. COMMITTEE CHAIR REPORT: Chair Crandall did not provide a report. Minutes of the Steering Committee November 16, 2011 Page 2 of 3 GENERAL MANAGER REPORT: Assistant General Manager, Bob Ghirelli, gave a brief overview of the updates to the new Strategic Plan. The three new goals include: Ocean Protection/Disinfection; Full Cost Recovery for Urban Runoff; and a Five-Year Rate Plan. Staff will follow-up with the Steering Committee as well as with the Board of Directors on various issues that were brought up at the Strategic Planning Meeting. General Manager, Jim Ruth, provided an update on the Kern County property for sale. Assistant General Manager, Jim Herberg, provided an update on the Capital Improvement Program. CONSENT CALENDAR: 1. MOVED, SECONDED AND DULY CARRIED: Approve Minutes of the October 26, 2011 Steering Committee meeting. ACTION ITEMS: 2. MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to: A. Approve the Five-Year Strategic Plan dated November 2011; and B. Direct staff to implement the goals and levels of service contained in the Plan INFORMATION ITEMS: 3. Public Affairs Report Public Affairs Manager, Michael Gold, informed the Committee on the types of grants the Sanitation District is currently looking into applying for. Mr. Gold announced that the Sanitation District recently received $200,000 in grant funds from AQMD for generator equipment conversions. Mr. Gold also announced that the Sanitation District is making progress with Larry Miller on the `10% income rule' legislation. He also gave a brief updated on initiatives regarding pension reform for locally elected officials. Minutes of the Steering Committee November 16, 2011 Page 3 of 3 CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS: 54956.9(b) The Steering Committee convened in closed session at 5:21 p.m. to discuss three matters. Confidential Minutes of the Closed Session held by the Steering Committee have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. CONVENE IN REGULAR SESSION: The meeting reconvened into regular session at 5:30 p.m. with no report from Closed Session. ADJOURNMENT: The Chair declared the meeting adjourned at 5:30 p.m. Submitted by: Maria E. Ayala Clerk of the Board BOARD OF DIRECTORS Meeting Date To Bd. of Dir. iz/zi/ii iz/zi/ii AGENDA REPORT Item Number Item Number z Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jeff Reed, Director of Human Resources SUBJECT: Final Action on Labor Agreements (Memoranda of Understanding) with Represented Employees GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 11-XX, Final Action on Labor Agreements (Memoranda of Understanding) with Represented Employees. SUMMARY The Brown Act allows the Board to hold closed sessions with the District's designated representatives regarding the compensation of represented and unrepresented employees, including salaries, salary schedules, and benefits. (Government Code Section 54957.6(a).) The Brown Act prohibits the Board from taking final action on the compensation of any unrepresented employees in closed session. (Ibid.) The Brown Act does not, however, prohibit the Board from taking final action on the compensation of represented employees in closed session. At the November Board meeting, the Board directed staff to develop a procedure requiring the Board to take final action on the compensation of represented employees in open session. Such a procedure would exceed the minimum requirements of the Brown Act as described above, thereby providing greater transparency and increased opportunities for public comment and participation. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A DW-102 Board AR, Rev 10/04/10 Page 1 of 1 RESOLUTION NO. OCSD 11-XX RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING A PROCEDURE TO TAKE FINAL ACTION ON LABOR AGREEMENTS WITH REPRESENTED EMPLOYEES WHEREAS, Government Code Section 54957.6(a), part of the Ralph M. Brown Act, allows the Board to hold closed sessions with the District's designated representatives regarding the compensation of represented and unrepresented employees, including salaries, salary schedules, and benefits; and, WHEREAS, Government Code Section 54957.6(a) prohibits the Board from taking final action on the compensation of any unrepresented employees in closed session, but allows the Board to take final action on the compensation of represented employees in closed session, including approving changes to Memoranda of Understanding; and WHEREAS, in order to maximize transparency and opportunities for public participation, the Board desires to establish a procedure whereby the Board is required to take final action on the compensation of represented employees in open session; NOW THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: The Board shall take final action on the compensation of represented employees in open session. PASSED AND ADOPTED at a regular meeting held this day of 20 Chairman, Board of Directors Clerk of the Board 822099.1 1 STEERING COMMITTEE Meeting Date To Bd. of Dir. 12/21/11 AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Michael Gold, Public Affairs Manager SUBJECT: Public Affairs update GENERAL MANAGER'S RECOMMENDATION Information Only SUMMARY This report is the monthly Public Affairs Division update that includes legislative and political information from Washington, D.C. and Sacramento, lobbyists' activities, and outreach education and communication programs to member cities, employees and the public. ADDITIONAL INFORMATION Public Affairs Update Tours and Community outreach The first six months of the fiscal year have been busy with tours and community outreach. To date, we have had 1161 people in 72 groups come visit OCSD. We have spoken to 17 different groups throughout the county. The following is a list of recent presentations: • Tustin Lions • Garden Grove Lions • La Habra Lions • Anaheim Lions • North Orange County Alliance (an alliance of Chambers of Commerce) • Villa Park Rotary Staff will inform Board Members when our team is in your community via email. Grants update OCSD will be submitting an application to the United States Bureau of Reclamation for a $1.5 million grant for project P1-101, the Sludge Dewatering and Odor Control project at Plant 1. As you recall, this project has already received $2.3 million from EPA and $1 million from Proposition 84 funds. Staff continues to look for funding opportunities, including identifying projects in the CIP and matching them up with funding sources. Page 1 of 5 Federal Legislative Update Legislative Advocate: Eric Sapirstein, ENS Resources Highlights from Washington The past month Congressional budget deficit negotiations collapsed. With the demise of the Super Committee that was tasked to develop a plan of action to reduce federal spending by at least $1.3 trillion over the next decade hopes were dashed again for an orderly process that could return Congress to a stable policymaking process. As a result, the federal budget debate moves into formal sequestration of $55 billion per year of domestic spending reductions beginning in fiscal year 2013. The severe reductions can be revised when the next Congress convenes after the elections in November 2012 since the actual impact of the cuts does not occur until January 2013. At the same time, Congress continues to wrestle with finalizing fiscal year 2012 spending priorities including efforts to curtail USEPA's regulatory authority. Fiscal Year 2012 Budget The efforts to finalize a USEPA budget for fiscal year 2012 all but collapsed when Congress precluded the agency from implementing a new definition of waters of the U.S. subject to Clean Water Act regulation. This policy rider, along with other measures to roll back incineration emissions controls and mandates to require pesticide application near water bodies to be subject to NPDES permit conditions, prompted a White House veto threat. As a result, the agency budget bill has been frozen. For OCSD, the impact of this budgetary paralysis is minimal; however it does stall infrastructure assistance programs other than the State Revolving Loan Fund Program (SRF). Nomination of Assistant Administrator The nomination of Ken Kopocis to become the next Assistant Administrator of Water at USEPA is being held because of the inability for Congress to adopt EPA's budget. Senator John Barrasso (R-WY) has placed a hold on the nomination vote by the Senate until he can secure a vote on his amendment to preclude USEPA publication of a new definition of the waters of the U.S. Kopocis enjoys strong bi-partisan support in the Senate because of his comprehensive understanding of the Clean Water Act and other water resources laws. Once the debate over the policy rider is concluded, Congressional staff believes the nomination will be approved or the President will make a recess appointment, allowing him to serve for one year. Citizen Suit Litigation As a result of CASA working with members of Congress, the persistent nuisance of frivolous citizen suits has finally resulted in the introduction of legislation to prohibit such litigation. Representative Tom McClintock (R-CA) introduced H.R. 3544. This bill would establish a federal policy that would modify the Clean Water Act's citizen suits authority by only allowing such suits for violations that are deemed to be significant under USEPA policy guidance. Affirmative defenses for acts of war, God and third parties would also Page 2 of 5 be provided. In an effort to address the inability of permitting authorities to act in a timely manner on permit renewals, the bill provides for NPDES permits to be issued for 15 years. Also, any new control mandates would be subject to cost-benefit analysis to assure that any costs would not exceed benefits. McClintock is expected to pursue the legislation aggressively during the upcoming session of Congress. Income Restrictions and Water Board Appointments Representative Gary Miller continues to pursue consideration of his bill, Sunshine on Conflicts Act (H.R. 2765), which would replace the existing income restriction test on whether an individual could be considered for nomination and service on a water board. During the past month, the Committee on Transportation and Infrastructure staff, working with Miller's staff, has been in contact with USEPA. The agency has indicated that they are reviewing the issue and predisposed to develop an administrative remedy. The agency has also indicated that if such a remedy can be devised, it could become part of an overall NPDES permit program revision rulemaking. According to committee staff, if the agency does not provide a timely response on the matter, then the legislative approach as sponsored by Miller will become a higher priority. Miller continues to advocate for committee consideration of H.R. 2765 with the effort directed at a Congressional hearing early next year. Chemical Security Mandates The ongoing effort to renew the Chemical Facilities Anti-Terrorism Standards program governing vulnerability assessments and security upgrades at chemical facilities continues. A number of Members continue to seek an amendment that would impose mandates on POTWs to conduct assessments, implement security upgrades and come under the oversight of the Department of Homeland Security instead of USEPA. However, these efforts are not expected to prevail and a simple extension of the current program is expected for as long as three years. State Legislative Update Legislative Advocates: Christopher Townsend, Heather Dion and Casey Elliott, Townsend Public Affairs State political highlights The Governor continues to push his pension reform package to the Legislature and the general public. The Governor is expected to ask the Legislature to approve most of the plan during the next legislative session, along with placing some items requiring voter approval on the November 2012 ballot. The proposed changes would impact state, county, and municipal employees who are a part of the CalPERS system. Among the reforms, Governor Brown called for a mandatory hybrid retirement system, which would include some guaranteed benefits but also a 401(k)-style plan that would be subject to investments. The Legislative Analyst's Office (LAO) recently reviewed the Governor's proposed reforms and stated that the Governor's reform package is "a bold starting point for legislative deliberations" on pensions. The LAO applauded the Governor's proposal to combine a 401(k)-style plan with the existing guaranteed-benefit system, and to raise Page 3 of 5 the retirement age from 55 to 67 for most future public employees. However, the LAO questioned whether changes to split pension costs equally between employers and current employees could be legally mandated. The LAO also pointed out that the Governor's reform package fails to address pension issues for state teachers and the University of California. After the Governor released his pension reform plan, the Legislative Conference Committee on Pension Reform held a meeting in Sacramento to discuss the proposal. The Committee is chaired by Assemblymember Warren Furutani (D-Gardena) and consists of a total of four Democratic and two Republican legislators. The two Republican committee members are both from the Orange County Delegation — Assemblymember Jim Silva and Senator Mimi Walters. The major theme of the testimony from the panelists was that pension reform cannot take a one-size-fits-all approach. The Governor made a personal appearance at the hearing and advocated for his 12-point plan, which he believes can be achieved in a bipartisan effort. The Governor and his Administration testified that they view his plan as a strong framework for the State that can also serve as a blueprint for the local level. The Committee expects to hold one or two more hearings in early 2012 in order to properly complete their conference committee report. Recent polling shows that a majority of California voters (51%) support Governor Brown's proposal. Looking at the remainder of 2011, the Governor and Legislature will remain focused on implementing and defending their budget proposal, which has been the source of numerous legal challenges and referenda efforts. In addition to the legal uncertainties surrounding the budget, State revenues continue to come in below expected levels. The Governor and Legislature balanced the budget in part by assuming the state would collect $4 billion in unanticipated revenue. While the State has not been collecting the level of revenue that was expected this year, there have been recent indications that the revenue situation may not be as bad as was feared. On December 8, State Controller Chiang announced that the November revenue projections were approximately $500 million or 8.9 percent above previous forecasts. The increased revenue was derived primarily from personal income and corporate taxes. Even with this good news through the first five months of the fiscal year, California is still $1 billion short of its revenue forecast. The LAO reported last month that California could fall short of the $4 billion in unanticipated revenue needed for a balanced budget. If the current revenue levels hold then the State will enact as much as $2 billion in "trigger cuts" starting in January to schools and social services that were approved earlier this year as part of the State budget. The Department of Finance is expected to weigh in next week with its own projections. In order to avoid further cuts to education and public safety in future budgets, Governor Brown has proposed an initiative for the November 2012 ballot that would raise the statewide sales tax a half-cent and impose higher income taxes starting with individuals making at least $250,000 a year or joint filers earning at least $500,000. The Governor's plan would raise $7 billion annually for five years to shrink the state's deficit, currently at $12.8 billion. Page 4 of 5 PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A Page 5 of 5