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HomeMy WebLinkAbout1997-06-11•• DRAFT MINUTES OF FINANCE, County Sanitation Districts of Orange County, California P.O. Box 8127 • 10844 Ellis Avenue Fountain Valley, CA 92728-8127 Telephone: (714) 962-2411 ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Wednesday, June 11. 1997, 5:30 P.M. A meeting of the Finance, Administration and Human Resources Committee of the County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California was held on Wednesday, June 11, 1997, at 5:30 p.m., at the Districts' Administrative Offices. ROLL CALL The roll was called and a quorum declared present, as follows: Committee Directors Present: George Brown, Chair John J. Collins, Joint Chair Jan Debay Barry Denes Norman Z. Eckenrode Thomas R. Saltarelli Peer Swan, Vice Joint Chair Committee Directors Absent : Mark A. Murphy Mark Schwing William G. Steiner Other Directors Present: None Staff Present: Donald F. McIntyre, General Manager Judith A. Wilson, Assistant General Manager Ed Hodges, Director of General Services Admin. David Ludwin, Director of Engineering Bob Ooten, Director of Operations & Maintenance Mike Peterman, Director of Human Resources Gary Streed, Director of Finance Chris Dahl, Information Technology Manager Marc Dubois, Contracts/Purchasing Manager Linda Eisman, Training Manager Steve Kozak, Financial Manager Mike White, Controller Corina Chaudhry, Executive Assistant II Lenora Crane, Committee Secretary Others Present: Tom Woodruff, General Counsel Barry Newton, Broadbanding Consultant APPOINTMENT OF A CHAIR PRO TEM No appointment was necessary. PUBLIC COMMENTS No comments were made. APPROVAL OF MINUTES It was moved, seconded and duly carried to approve the draft minutes of the May 14, 1997 meeting of the Finance, Administration and Human Resources Committee. Minutes of Finance, Admir :1d Human Resources Committee Page 2 June 11, 1997 REPORT OF THE COMMITTEE CHAIR The Committee Chair had no report. REPORT OF THE GENERAL MANAGER • General Manager Don McIntyre advised the Committee that at the PDC Committee meeting last Wednesday, Director Peer Swan had some questions regarding justifications for equipment requests contained in the proposed CORF budget. Copies of the justifications were distributed prior to the meeting for the Committee's review and are not included in the budget document because of their volume. • A special meeting of the OMTS Committee has been called for this Saturday, June 14, from 9:00 a.m. to 12:00 Noon, at the request of Director Wedaa. Director Wedaa wants to discuss some of his concerns dealing with performance measurements. The meeting has been noticed and everyone is encouraged to attend, if they can. Director Swan stated he spoke with Director Wedaa after the OMTS meeting last week and Director Wedaa is concerned with performance measurements, since they ultimately have an impact on budget in more general terms. REPORT OF ASSISTANT GENERAL MANAGER -ADMINISTRATION • Assistant General Manager Judy Wilson informed the Committee that a copy of the Districts' FY 97-98 Work Plan was placed before them for their review. The Work Plan.is a companion piece of the budget. The Budget itself includes performance measures that really measure the day-to-day activities at the Plants, our basic tasks, and our main mission. The Work Plan is directed towards the seven critical goals and is organized by goals. It reflects what each department and division is doing to carry out those seven goals. We will be monitoring the · Work Plan on a quarterly basis. • Judy Wilson also updated the Committee on the status of AB 769 (Baugh) dealing with the Districts' consolidation efforts. AB 769 should be before the State Local Government Committee on June 18. So far, there is no organized opposition and it is expected to be placed on the Committee's Consent Calendar. Our consultant will have a report to us on Monday of next week. Director Collins advised that he spoke to Assemblyman Scott Baugh and he indicated he expects no problem. Don McIntyre stated that the new Pringle Bill might cause some confusion in the minds of the Senators. The Pringle Bill deals with consolidation of special districts in South County. REPORT OF ASSISTANT GENERAL MANAGER -OPERATIONS The Assistant General Manager of Operations had no report. REPORT OF THE DIRECTOR OF FINANCE • Finance Director Gary Streed advised the Committee that the monthly Treasurer's Report was distributed prior to the meeting in accordance with policy. A new schedule has been added to the Treasurer's Report which includes yield calculations. Total cash and investments total ----, ---Minutes of Finance, Adil ,and Human Resources Committee ! Page 3 June 11, 1997 $393 Million, including deferred compensation, and we are in compliance with all of the Investment Policy guidelines. • A copy of the slide presentation for the Budget was placed before each of the Committee members. • Regarding the two insurance items on the Consent Calendar, Mr. Streed stated that firm prices were received today. Both the property insurance and liability insurance costs came in a little lower than the not-to-exceed amounts contained in the AIT. There is about a $5,000 savings on the liability. We have been able to increase our earthquake coverage from $30 to $40 million and still reduce premium costs on the liability coverage by $100,000. In response to the Committee, Mr. Streed advised that the Districts' earthquake deductible is 5%. The increase in earthquake coverage will have some effect on required reserve balances, but it is not expected to be significant. Judy Wilson informed the Committee that a Reserves Study being conducted this summer will include a risk analysis of reserves set aside for self- insurance type activities. This study should be completed in September. REPORT OF THE DIRECTOR OF HUMAN RESOURCES The Director of Human Resources had no report. REPORT OF THE DIRECTOR OF GENERAL SERVICES ADMINISTRATION The Director _of General Services Administration had no report. REPORT OF THE DIRECTOR OF COMMUNICATIONS • Communications Director Michelle Tuchman reported that she received only one phone call as a result of the May 29 article in the Register regarding user fees. • As a part of the Districts' Outreach Program, our meeting rooms have been made available to outside groups such as COG. They have requested another meeting for June 19 in the Board Room. LAFCO has also requested the use of our facilities for an upcoming meeting. REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff updated the Committee on the status of the disciplinary appeals process. The disciplinary appeals regarding terminations are drawing to a close, with just four more cases to go. No one has been ordered back to work. There are a few major hearings scheduled for disciplinary cases of lesser degrees which should last another 40 to 45 days. There is no indication that anyone has filed a suit. CONSENT CALENDAR ITEMS {1 -7) 1. FAHR97-34: RECEIVE AND FILE TREASURER'S REPORT FOR THE MONTH OF MAY 1997 (All Districts): The May Treasurer's Report was handed out at the FAHR Committee meeting in accordance with the Board-approved Investment Policy, and in conformance to the Government Code requirement to have monthly reports reviewed within 30 days of month end. Minutes of Finance, Admh .,d Human Resources Committee Page 4 June 11, 1997 2. FAHR97-35: 3. FAHR97-36: 4. FAHR97-37: 5. FAHR97-38: 6. FAHR97-39: 7. FAHR97-40: RECOMMENDED ACTION: Receive and file Treasurer's Report for the month of May 1997 and forward to the Joint Boards. CERTIFICATES OF PARTICIPATION (COP) REPORT (All Districts): RECOMMENDED ACTION: Receive and file this information-only item. EMPLOYMENT STATUS REPORT (All Districts): Total head count at the Districts as of May 19, 1997 RECOMMENDED ACTION: Receive and file this information-only item. ANNUAL RENEWAL OF THE DISTRICTS' ALL-RISK PROPERTY AND EARTHQUAKE INSURANCE PROGRAM FOR THE PERIOD JUNE 25, 1997, TO JUNE 25, 1998 (All Districts) RECOMMENDED ACTION: Renew the Districts' All Risk Property and Earthquake Insurance Program for the period June 25, 1997, to June 25, 1998, in an amount not to exceed $1, 136,525 million. ANNUAL RENEWAL OF THE DISTRICTS' GENERAL LIABILITY AND EXCESS LIABILITY INSURANCE PROGRAM FOR THE PERIOD JULY 1, 1997, TO JULY 1, 1999 (All Districts) RECOMMENDED ACTION: Renew the Districts' General Liability and Excess Liability Insurance Program for the period July 1, 1997, to July 1, 1998, in an amount not to exceed $125,000; and 2) Renew the Districts' General Liability and Excess Liability Insurance Program for the period July 1, 1998 to July 1, 1999, in an amount not to exceed $120,000. SUMMARY REPORT ON TRAINING FOR THIRD-QUARTER FISCAL YEAR 1996-97 (All Districts) RECOMMENDED ACTION: Receive and file staff summary report on Training for Third-Quarter Fiscal Year 1996-97. STATUS REPORT ON IMPLEMENTATION OF THE SAFETY & RISK MANAGEMENT POLICY REVIEW COMMITTEE {All Districts) RECOMMENDED ACTION: Receive and file this information-only report. MOTION: A motion was made, seconded and unanimously carried to approve the recommended actions for items specified as 1 through 7 under "Consent Calendar." ACTION ITEMS (Nos. 8 -11) 8. FAHR97-41: STRATEGIC INFORMATION PLAN FOR INFORMATION TECHNOLOGY (All Districts) COMMITTEE DISCUSSION: Ed Hodges gave a brief overview of the Information Technology Division, and the decision to restructure the Division in 1996 to meet the needs of the Districts' internal customers. Minutes of Finance, Adn ~"'\nd Human Resources Committee -) Page 5 June 11, 1997 9. F AHR97-42: Chris Dahl gave a slide presentation and reviewed the benchmark study conducted by the Gartner Group and their recommendations. Mr. Dahl reviewed the external and internal views of the SIP and its key issues. He also reviewed the long and short-term strategies and projects that need to be undertaken and implemented by the Districts to attain the goals identified in the Strategic Information Plan. In response to Committee questions, Mr. Dahl advised that the Districts were categorized as "best in costs" based on equipment costs, people costs and management and administrative costs when compared to industry and peer groups, and "best in class" in some areas in the study, such as in help desk efficiency. He also advised that the Division's Work Plan is the tool which will be used to show how the SI P's critical goals will be achieved. During discussion Judy Wilson explained that in addition to using the Work Plan as a tool to monitor accomplishments of the division's critical goals, performance objectives are included in the division's budget and are also used as measurement tools. Performance objectives are very quantifiable and can be tracked regularly. There are three or four performance measures in the IT Division budget that will be tracked and monitored. Judy Wilson also advised the Directors that SIP Work Plan quarterly reports will be provided to the Committee and will address requests for more specific milestones, deliverables and budget tracking. MOTION: It was moved, seconded and duly carried to: 1.) Receive and file the Strategic Information Plan; and 2.) Authorize staff to proceed with the direction established within the Strategic Information Plan. PROPOSED FY 1997-98 JOINT WORKS OPERATING AND CAPITAL BUDGETS, AND 1997-98 INDIVIDUAL DISTRICTS' BUDGETS (All Districts) COMMITTEE DISCUSSION: Don McIntyre stated this is the best budget we have produced since he has been with the Districts, and that the process, the project and the product continue to improve. Gary Streed advised that each Director received a copy of the proposed budget in the mail. The justifications have been provided to the Committee, and budget assumptions have previously been reviewed by the FAHR Committee and the Steering Committee. The budgets do incorporate the recent user fee increases. Mr. Streed stated that the budgets have a requirement of $156 million, revenues of $136 million, and borrowing of $32 million. He briefly reviewed the Joint Operating Fund, Joint Works Capital budget, the Districts' Operating Budget, the Districts' Capital Improvement Program, Joint Operating Changes, Average Daily Flow, JO Cost Per Million Gallon, the 5-Year Staffing Plan, the Joint Works Capital Improvements, the District's Total Requirements, proposed New Borrowing/COP and Other Topics which included critical goals, long-term planning, multi-year user fee program, consolidation, accumulated funds and reserves, and staff purchasing authority. Minutes of Finance, Admil lid Human Resources Committee Page 6 June 11, 1997 The Joint Operating Budget is proposed at $46.9 million; total Joint Capital Budget is proposed at $54.4 million; the number of FTE's is expected to be 549 at June of next year; and the cost per million gallons is expected to be $525 at June 30, 1997 and in 1997-98. Director Collins requested that staff place an overlay in the budget presentation in the future that depicts the Districts' true staffing level and includes the level of contractual services. David Ludwin explained the evolution of a new capital project. Director Swan felt the process was acceptable, however, even if a project is budgeted, it must be brought before the PDC Committee and approved before any funds can be expended. Staff advised the Committee that detail sheets of proposed capital projects are included in the budget in Section 8. Director Swan expressed concern about the 32 items identified in the budget costing over $50,000 and fall within Purchasing Resolution 96-87's delegation of authority. The Resolution provides that purchases of supplies, equipment and services that have appropriate budgetary approvals shall be awarded directly by the Contracts Administrator/Purchasing Manager. In response to questions regarding the 32 items, Gary and Judy advised the Committee that the J. D. Edwards project is a software package for the new Financial Information System. Ed Hodges advised that the Wakenhut contract is up for renewal, that the Districts is looking at reducing its security needs, and we will be taking bids from several other agencies in addition to Wakenhut. Discussion also took place regarding costs of the OCR Project. Until costs are identified in the project's Financial Plan, Judy and Don explained that the Districts does not propose spending a lot of money or issuing debt. Chair Brown advised that he requested staff to highlight the important points of the budget and focus in on the key items. He advised this would be the time to discuss any of the Committees' concerns. He noted that the entire budget will not be redone. Small changes might be made. Saturday's meeting of the OMTS may also result in small changes being made. After lengthy discussion on this issue, and a perusal of the proposed list, the Committee felt that the total budget request was high and Committee approval would be appropriate for some of the items. The Committee, therefore, directed staff to: 1. In future budgets, provide a general descriptive paragraph for each of the Purchasing line items. 2. Provide a three or four-page pre-budget report in early spring of each year to the appropriate Committees describing all items staff proposes to purchase. Minutes of Finance, Adn"}and Human Resources Committee ) Page 7 June 11, 1997 3. Include all of the purchasing items on this year's list for budgetary approval, however, staff will have no authority to purchase items 2, 3, 4, 6, 7, 8 without Committee approval. For items 12, 13, 14, 17, 25 and 26, purchases shall be authorized, but a report must be given to the appropriate Standing Committee explaining how the purchases were made and at what cost. 4. Staff may proceed with the chemical purchases, however, quarterly reports must be brought back to Committee to track costs against budgeted amounts. Director Swan suggested that staff not include accumulated funds in the total budget as it appears in Section 1, Page 1 of the proposed budget. He advised no other agencies include these amounts. He stated he also has other suggestions for improving the General Manager's Message, which he will discuss with Don McIntyre. Judy Wilson and Michelle Tuchman advised the Committee that an Executive Summary of the budget will be prepared once all budget amounts are firm. This will be a small two or three page pamphlet. MOTION: It was moved, seconded and duly carried to recommend the Joint Boards: 1.) Approve the proposed Joint Works Operating and Capital Budgets for 1997-98 as follows: Joint Works Operating/Working Capital Worker's Compensation Self-Insurance Public Liability Self-Insurance Joint Works Capital Outlay Revolving $46,922,650 270,000 525,000 54,540,200 2.) Approve the proposed Individual Districts' Budgets for FY 1997-98 as follows: District No. 1 District No. 2 District No. 3 District No. 5 District No. 6 District No. 7 District No. 11 District No. 13 District No. 14 $ 41,537,000 170,725,500 185,427,000 37,245,000 30,140,000 50,928,000 37,117,000 11,246,000 12,954,000 Minutes of Finance, Admir ~d Human Resources Committee Page 8 June 11, 1997 10. FAHR97-43: 11 . FAHR97-44: PRESENTATION ON BROADBANDING (All Districts) COMMITTEE DISCUSSION: The Human Resources Director Mike Peterman provided a presentation on the Broadbanding Study that was recently completed by Barry Newton of Creative Management Solutions. Mr. Peterman explained the objectives of the Districts and the objectives of Creative Management in providing this study. Broadbanding eliminates the seniority and tenure based compensation system and/or step system, eliminates overlapping job functions, eliminates the narrow scope of current job specifications to minimize working out of classification, and increases the competency of the work force which will move us toward a performance based organization. The system will wipe out traditional tenured systems that do not recognize nor reward excellence. The broadbanding proposal reduces nearly 60 salary ranges into 7 broad ranges or bands, and deletes nearly 90 job titles. Each band is comprised of five zones. Movement between zones within a band would be determined by the number of competencies the employee obtains. Don McIntyre advised the Committee that it may take anywhere from six to eight months to get all of the bargaining units to approve this plan, and advised that the DART Committee is expected to play an important role in selling the plan. Bob Ooten advised that Broadbanding is working at a national level. Many of the points in the plan must be negotiated to make it work and that the recommended action tonight is to move forward with the plan conceptually. After discussion on this item, the Committee felt the move to Broadbanding would be good for the Districts, however, getting approval from all of the bargaining units may be difficult. MOTION: It was moved, seconded and duly carried to 1.) Receive and file the Broadbanding Study; and 2.) Authorize the Director of Human Resources to reopen negotiations with Orange County Employees Association, Local 501 and the Supervisors and Professional Team to meet and confer on a performance and skill-based compensation system, with the condition that staff will provide quarterly status reports and the FAHR Committee must approve the final compensation plan. ADOPTION OF "IDEA" PROGRAM AS A REPLACEMENT FOR THE PRIDE PROGRAM IN ORDER TO REWARD EMPLOYEE SUGGESTIONS FOR COST SAVINGS (All Districts) COMMITTEE DISCUSSION: Judy Wilson introduced her Executive Assistant, Corina Chaudhry, who gave the presentation on this item. Corina provided an overview of the IDEA Program which replaces the Districts' old PRIDE suggestion program. Corina advised the Committee that the old PRIDE Program paid out $26,000 in awards, based on the initial first year's saving since 1981, and the Districts received a cost savings of $90,000. Corina explained the IDEA program's evaluation \ T I Minutes of Finance, Adn ,...)and Human Resources Committee ') Page 9 June 11, 1997 process, and the percentages that are proposed to be paid to award recipients. She advised that monthly reports will be provided to the Executive Management Team on the status of IDEAs being submitted, approved or disapproved. The Committee determined from staff that $25,000 has been budgeted in the General Manager's budget for the IDEA Program. Discussion took place regarding the proposed increase in award amounts. The Committee suggested that staff to look into other forms of awarding employees, such as movie tickets, recognition, etc. Since the maximum award amounts are large, the Committee felt that the ultimate approving authority should be the General Manager. MOTION: It was moved, seconded and duly carried to recommended the following with the stipulation that the General Manager be designated as the final approving authority for monetary awards: 1.) Approve an increase from the current $150 maximum award amount to $200 maximum for approved IDEAs for improvement and; 2.) Approve an increase from the current $1,500 maximum award amount to $3,000 award maximum for approved IDEAs that offer significant cost savings. Cost saving awards to be calculated as the equivalent of 10% of the initial first year's projected savings upon implementation of the suggestion. INFORMATIONAL PRESENTATIONS There were none. CLOSED SESSION The Chair reported the need for a closed session, as authorized by Government Code Sections 54957.6, to discuss and consider the item specified under "Closed Session" as Item 9(a) on the published Agenda. The Committee convened in closed session at 8:00 p.m. At 8:10 p.m., the Committee reconvened in regular session. Confidential Minutes of the Closed Session held by the Committee have been prepared in accordance with California Government Code Section 549057.2 and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY There were none. MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. ' Minutes of Finance, Admir '~d Human Resources Committee Page 10 June 11, 1997 MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. FUTURE MEETING DATES The next Finance, Administration and Human Resources Committee Meeting is scheduled for Wednesday, July 9, 1997, at 5:30 p.m. ADJOURNMENT The meeting was adjourned at 8:12 p.m. Submitted by: ~~ Finance, Administration and Human Resources Committee Secretary H:\WP.DTA\FIN\2210\CRANE\FAHR\FAHR.97UUNE\6MIN.97 ST A TE OF CALIFORNIA ) ) ss. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, I hereby certify that the Notice and the Agenda for the Finance, Administration and Human Resources meeting held on June 11, 1997, was duly posted for public inspection in the main lobby of the Districts' offices on June 5, 1997. IN WITNESS WHEREOF, I have hereunto set my hand this 11th day of June 1997. Penny Kyle, Secretar eac /the ~oards of Directors of County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 & 14 of Orange County, California Posted:~ s-----, 1997,tf,').Q @,P.M. By:~~ ~ H :\WP .DT A\FIN\2210\CRAN EIFAHRIFAHR.97\JUN E\CERTPO06.97 June 5, 1997 DISTRIBUTION FAHR COMMITTEE MEETING PACKAGE Full Agenda Package Committee 15 & Mailing List Donald F. McIntyre 1 Blake P. Anderson 1 Judith A. Wilson 1 Dan Dillon 1 Marc Dubois 1 Linda Eisman 1 Jeff Esber 1 Ed Hodges 1 Steve Kozak 1 Penny Kyle 2 David Ludwin 1 Greg Mathews 1 Chris Dahl 1 Bob Ooten 1 Mike Peterman 1 Gary Streed 1 Michelle Tuchman 1 Terri Josway 1 Dan Tunnicliff (H.R.) 1 Nancy Wheatley 1 Mike White 1 Laurie Arnold 1 Gail Cain 1 Bob Geggie 1 Corina Chaudhry 1 Lenora Crane 1 File 1 Extras 3 Notices and Agenda 13 Posting 1 Jean Tappan (include Mins) 1 Angela Holden 1 Frankie Woodside 1 Patricia Magnante 1 Janet Gray 1 Fawn Elizondo 1 Debra Lecuna 1 Guard Shack (Ed Hodges) 1 Extras 3 (3-hole punched) (3-hole punched) (3-hole punched) (3-hole punched) Ron Zenk, Dist. 14 Treasurer's Report Only le H:\WP.DTA \FIN\221 0\CRANE\FAHR\OISTLST.97 phone: (714) 962-2411 mailing address: P.O. Box 8127 Fountain Valley, CA 92728-8127 sti:eet address: 10844 8 11s Avenue FtiL'.lntain Valley, CA 92708-7018 Member Agencies • Cities Anaheim B1·ea Buena Park Cypress Fountain Vsl/ey F-Ullerton Hunlifngt/Jh Besoh Jrvrne Ls Habra L.a Palma Las Alsm,cos Newport Beech Orange P/srJ1entia Santa Ana Seal Beech Sterrcon Tustin Ville Perk Yar/Js Unde County of a~enge Sanitary Dfstr!cts Costa Mess GllN:fen Grove Midway Giey Water Ofstrlcts Irvine R,mch COUNTY ·JNITATION DISTRICTS OF •R;};E COUNTY, CALIFORNIA June 5, 1997 NOTICE OF MEETING FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE COUNTY SANITATION DISTRICTS NOS.1, 2, 3, 5, 6, 7, 11, 13 AND 14 OF ORANGE COUNTY, CALIFORNIA WEDNESDAY. JUNE 11.1997-5:30 P.M . DISTRICTS' ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708 A regular meeting of the Finance, Administration and Human Resources Committee of the Joint Boards of Directors of County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California, will be held at the above location, time and date. A Public Wastewater and Environmental Management Agency Committed to Protecting the Environment Since 1954 FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE TENTATIVELY SCHEDULED MEETING DATES FAHR Committee Joint Board Month Meetings Meetings June June 11, 1997 June 25, 1997 July July 9, 1997 July 30, 1997 August NONE SCHEDULED August 27, 1997 September September 10, 1997 September 24, 1997 October October 8, 1997 October 22, 1997 November November 12, 1997 November 19, 1997 December December 10, 1997 December 17, 1997 January January 14, 1998 January 28, 1998 February February 11 , 1998 February 25, 1998 March March 11 , 1998 March 25, 1998 April April 8, 1998 April 22, 1998 May May 13, 1998 May 27, 1998 June June 10, 1998 June 24, 1998 AGENDA • REGULAR MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE ROLL CALL COUNTY SANITATION DISTRICTS NOS. 1, 2, 3, 5, 6, 7, 11, 13AND 14 OF ORANGE COUNTY, CALIFORNIA WEDNESDAY, JUNE 11, 1997 AT 5:30 P.M. ADMINISTRATIVE OFFICES 10844 Ellis Avenue Fountain Valley, California 92708 APPOINTMENT GF CHA,IR PRO TEM. IF N~CESSARY AGENDA In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the Districts· Administrative Offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the Office of the Board Secretary. In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or that there is a need to take immediate action which need came to the attention of the Committee subsequent to the posting of the agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. PUBLIC COMMENTS All persons wishing to address the Finance, Administration and Human Resources Committee on specific agenda items or matters of general interest should do so at this time. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to five minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). June11,1997 RECEIVE. FILE AND APPROVE MINUTES-OF PREVIOUS MEETING Recommended, Acti0n: Receive, file and approve draft minutes of the May 14, 1997, Finance, Administration and Human Resources Committee meetings. REPORT OF COMMITTEE CH,4:IR REPORT OF GEN6RAL MANAGER • REPORT OF ASSISTANT GENERAL MANAGER-ADMINISTRATION REPORT or; ASSISTANT GENERAL MANAGER -OPERATIONS REPORT OF DI RECTOR O:F FINANCE. REPORT 0F DIRE.CT©R OF HUMAN RESOU~CES REPORT OF DIRECTOR OF GENERAL SERVICES ADMINISTRATION REPORT OF DI.RECTOR OFr COMMUNICATIONS REPORT OF GENERAL COUNSEL CONSENT CALENDAR ITEMS : ·········•···• ..................... _ .................................................... __ ......................................................... ,.. ......... _. _________ -.................................................................. _ ......................................... . All matters placed on the consent calendar are considered as not requiring discussion or further explanation and unless any particular item is requested to be removed from the consent calendar by a Director, staff member or member of the public in attendance, there will be no separate discussion of these items. All items on the consent calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the consent calendar shall be considered in the regular order of business. Members of the public who wish to remove an item from the consent calendar shall, upon recognition by the chair, state their name, address and designate by number the item to be removed from the consent calendar. The Chair will determine if any items are to be deleted from the consent calendar. , ............................................................................................................................................... --................................................. ..-.·•·--·-····· .. ··-....... . 1. FAHR97-34: RECEIVE AND FILE T~EASURER'S REPORT FOR THE MONTH OF Mk. Y 1997 (All Districts): The May Treasurer's Report will be handed out at the F AHR Committee meeting in accordance with the Board-approved Investment Policy, and in conformance to the Government Code requirement to have monthly reports reviewed within 30 days of month end. RECOMMENDED ACTION: Receive and file Treasurer's Report for the month of May 1997 and forward to the Joint Boards. 2 June 11, 1997 CONSENT CALENDAR ITEMS (Continued) 2. FAHR97-35: CERTIFICATES OF PARTICIPATION (COP} REPORT (All Districts): RECOMMENDED ACTION: Receive and file this information-only item. 3. FAHR97-36: EMPLOYMENT STATUS REPORT (All Districts): Total head count at the Districts as of May 19, 1997. RECOMMENDED ACTION: Receive and file this information-only item. 4. FAHR97-37: AN'NUAL RENEW~L OF THE DISTRICTS' ALL-RISK PROPERTY ,AMD EARTHQUAKE INSURANCE PROGRAM FOR THE PERIOD JUNE 25. 1997. TO JUNE 25, 1998 (All Districts) RECOMMENDED ACTION: Renew the Districts' All-Risk Property and Earthquake Insurance Program for the period June 25, 1997, to June 25, 1998, in an amount not to exceed $1,136,525 million. 5. FAHR97-38: ANNUAt RENEWAL OF THE DISTRICTS' GENERAL LIABILITY AND EX,C~SS Ll,4.BILITY I.NSURANCE PROGRAM FOR THE P'ERIOD JULY 1, 1997, TO JULY 1. j 999 (All Districts) RECOMMENDED ACTION: 1) Renew the Districts' General Liability and Excess Liability Insurance Program for the period July 1. 1997, to July 1, 1998, in an amount not to exceed $125,000; and 2) Renew the Districts' General Liability and Excess Liability Insurance Program for the period July 1, 1998 to July 1, 1999, in an amount not to exceed $120,000. 6. FAHR97-39: SUMMARY REPORT ON TRAINING FOR THIR[i) QUARTER FISCALYEAR 199€>-97 (All Districts) RECOMMENDED ACTION: Receive and file staff summary report on Training for Third-Quarter Fiscal Year 1996-97. 7. FAHR97-40: STATUS REPORT ON IMPLEME'NTATiON OF THE SAFETY & RISK MANAGEMENT POLICY REVIEW COMMITTEE (All Districts) RECOMMENDED ACTION: Receive and file this Information only report. END OF CONSENT CALENDAR Consideration of items deleted from Consent Calendar, if any. Consideration of one motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same. 3 June 11, 1997 ACTION LTEMS 8. FAHR97-41: STRATEGIC INFORMATION PLAN fOR INFORMATION t'ECHNOlOGY (All Districts) RECOMMENDED ACTION: 1. Receive and file the Strategic Information Plan; and 2. Authorize staff to proceed with the direction established within the Strategic Information Plan. (Ed Hodges/Chris Dahl -15 minutes) 9. FAHR97-42: PROPOSED FY 1997~98-JOINT WG>RKS OPERATING AND CAPlT.AL BUDGETS, AND 1997-,98 INDIVIDUAL E>tSTRICTS' BUDGETS {All Districts) RECOMMENDED ACTION: 1) Staff recommends approval of the proposed Joint Works Operating and Capital Budgets for 1997-98 as follows: Joint Works Operating/Working Capital Worker's Compensation Self-Insurance Public Liability Self-Insurance Joint Works Capital Outlay Revolving $46,922,650 270,000 525,000 54,540,200 2) Staff recommends approval of the proposed Individual Districts' Budgets for FY 1997-98 as follows: DISTRICT NO. 1 Operating Fund Capital Facilities Fund Construction/COP Fund Total DISTRICT NO. 2 Operating Fund Capital Facilities Fund Construction/COP Fund Total DISTRICT NO. 3 Operating Fund Capital Facilities Fund Construction/COP Fund Total ,DISTRICT NO. 5 Operating Fund Capital Facilities Fund Construction/COP Fund Total 4 $14, 110,,000 10.,960,000 16A67,000 ~41,537i,000 $ 70,-913,000 60,371,500 .39,441,000 $170,725,.500 $ 99,97S,OOO 461718,000 38,734,000 $185,427,000 $18,446,000 11,,531,000 7.268,©00· $-31,24s-,ooo June 11, 1997 ACTION ITEMS (Continued) DISTRICT NO. 6 Operating Fund Capital Facilities Fund Construction/COP Fund Total DISTRICT NO. 7 Operating Fund Capital Facilities Fund Construction/COP Fund Total DISTRICT NO. 11 Operating Fund Capital Facilities Fund Construction/COP Fund Bond & Interest Fund -1958 Total DISTRICT NO. 13 Operating Fund Capital Facilities Fund Construction/COP Fund Total DISTRICT NO. 14 Operating Fund Capital Facilities Fund Construction Fund/COP Fund Total (Judy Wilson/Gary Streed/Mike White -20 minutes) $17,8·54,000 6,771 ,000 51515,000 $30.140.000 $26,256,000 12,986,000 11,686,000 $50.928.000 $13,405,000 14,474,000 9,204,000 34.000 $3?, 117,000 $ 2,839,000 8,368,000 39,000 $1 1.246.000 $ 4,186,000 8,546,000 222,000 $112. 954,000 10. FAHR97-43: PRESENI ATIOt-J ON BROADBANDING STUDY (All Districts): The Human Resources Director will provide a presentation on the Broadbanding Study that was recently completed by Barry Newton from Creative Management Solutions. RECOMMENDED ACTION: 1. Receive and file Broadbanding Study; and 2. Authorize the Director of Human Resources to reopen negotiations with Orange County Employees Association, Local 501 and the Supervisors and Professional Team to meet and confer on a performance and skill-based compensation system, with the condition that staff will provide quarterly status reports and the FAHR Committee must approve the final compensation plan. (Mike Peterman -1 O minutes) 5 June 11, 1997 ACTION iTEMS (Continued) 11. FAHR97-44: AOOPTl.<DN OF ulDEA'' PROGRAM AS A REPLAGEM~NT FOR TW!i PRIDE PROGRAM IN ORD~R To, REWAR:b EMPLOYEE SlJGGESTIONS F.OR COST SAVINGS (All Districts) RECOMMENDED ACTION: 1. Approve an increase from the current $150 maximum award amount to $200 maximum for approved IDEAs for improvement; and 2. Approve an increase from the current $1,500 maximum award amount to $3,000 award maximum for approved IDEAs that offer significant cost savings. Cost saving awards to be calculated as the equivalent of 10% of the initial first year's projected savings upon implementation of the suggestion. (Corina Chaudhry -5 minutes) INFORMATIONAL PRESENTATIONS None. CLOSED SESSION 1 During the course of conducting the business set forth on this agenda as a regular ·meeting of the j ! Committee, the Chair may convene the Committee in closed session to consider matters of pending real ! i estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code : i Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. ' j Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) l employee actions or negotiations with employee representatives; or which are exempt from public ! disclosure under the California Public Records Act, may be reviewed by the Committee during a permitted j closed session and are not available for public inspection. At such time as final actions are taken by the . ! Committee on .c;1~y.of_these_subjects, the _minutes.will. reflect all required' disclosures _of information ............... ! 12. Convene in closed session. (a) Confer with Districts' Negotiator re pending MOU Labor Negotiations (Government Code Section 54957.6). 13. Reconvene in regular session. 14. Consideration of action, if any, on matters considered in closed session. OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY 6 June 11, 1997 MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT FUTURE MEETING DATES The next Finance, Administration and Human Resources Committee Meeting is scheduled for July 9, 1997. NOTICE TO COMMITTEE MEMBERS ··--··· ......................... _. ___ ...... ~ ................ __________ ............................................................................................................................................................................................................... . Ht you have any questions on the agenda or wish to place any items on the agenda, Committee members should contact l the Committee Chair or Secretary ten days in advance of the Committee meeting. I j : Committee Chair: I George Brown (310) 431-2185 : Comm. Secretary: Lenora Crane (Finance) (714) 962-2411, Ext. 2501 I (714) 962-3954 (FAX) l·Assl G_omn:i. Secretary: ................... Frankie Woodside__(GSA) .. (714) 962-24·111.Ext. 3001 ... _ .. _ .................................. . le H:IWP.DTA\FINl2210\CRANE\FAHR\FAHR.97\JUNE\AGENDA6.97 7 ROLL CALL FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING DATE: June 11.1997 COMMITTEE MEMBERS GEORGE BROWN (Chair) ................................................. . JOHN J. COLLINS (JC) ...............................................•....•.. JAN DEBAY ......................................................................... .. BARRY DENES ......... _ ......................................................... . NORMAN ECKENRODE ................................................... . MARK MURPHY .........................................................•......... THOMAS SALTARELLI ..................................................... . MARK SCHWING ............................................................... . WILLIAM STEINER ............................................................. . PEER SWAN (VJC) ........................................................... .. STAFF DON MCINTYRE, General Manager.. ................................ .. BLAKE ANDERSON, Asst. Gen'I. Mgr. -Ops .................... . JUDITH WILSON, Asst. Gen'I. Mgr. -Admin ...................... . ED HODGES, Director of Gen'I. Srvs. Admin ...................... . DAVID LUDWIN, Director of Engineering ........................... . BOB OOTEN, Director of Operations & Maintenance ........ .. MIKE PETERMAN, Director of Human Resources ............ .. GARY STREED, Director of Finance ................................. .. MICHELLE TUCHMAN, Director of Communications ......... . NANCY WHEATLEY, Director of Tech. Srvs ..................... .. STEVE KOZAK, Financial Manager .................................... . MIKE WHITE, Controller ...................................................... . GREG MATHEWS, Principal Administrative Analyst... ...... .. LINDA EISMAN, Training Manager.. ................................... . CHRIS DAHL, Information Technology Manager ................ .. TERRI JOSWAY, Safety & Emergency Response Mgr ..... .. CORINA CHAUDHRY, Executive Assistant II .................... . LENORA CRANE, Committee Secretary ............................ .. OTHERS TOM WOODRUFF, General Counsel.. ............................ . ___________ ............................... . -----------································ c: Penny Kyle Debra Lecuna TIME: 5:30 P.M. ADJOURN: ----=-P=.M=. APPROVAL O'F MINUTES OMTS: PDC: FAHR: 06/11/97 EXEC: STEER: JT.BDS: ALL AGENDA WORDING AND RECOMMENDED ACTION(S): Agenda Wording: AGEN \ ITEM TRANSMITTAL CONTACT FOR INFORMATION (Orginator) 2210, Gary G. Streed, 2500 Division No., Name, and Extension RECEIVE AND FILE DRAFT FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MINUTES FOR THE MEETING HELD MAY 14, 1997 (All Districts) Recommended Action(s): 1. Receive and file draft Finance, Administration and Human Resources Committee minutes for the meeting held May 14, 1997. CEQA REVIEW: Project is Exempt: NOT APPLICABLE Date Notice of Exemption Filed: Negative Declaration Approved on Final EIR Approved on_ and Notice of Determination filed on _ CURRENT BUDGET/COST INFORMATION TOTAL BUDGETED AMT.: N/A SOURCE: CORF JO DISTRICTS Schedule/Line Items: AMOUNT OF TRANSFER: Schedule/Line Item: TOTAL PROJECT BUDGET INFORMATION First Year in Budget: Master Plan Estimate: Year of First Costs: THIS AITNENDOR/PROJECT COST INFORMATION CURRENT YEAR BUDGET AMOUNT N/A ORIGINAL BUDGET TOTAL N/A ORIGINAL BID, PO, CONTRACT AMOUNT N/A WILL PROJECT REQUIRE ADDITIONAL PERSONNEL? NO If YES, state number: _ Permanent _ Limited Term Revised 04/10/97 H:\WP.DTA\FIN\2210\CRANE\FPC.MTG\FAHR.97\JUNE\AITMIN06.97 DATE OF MOST RECENT BOARD ACTION ON THIS SPECIFIC ITEM: CURRENT YEAR- TO-DATE EXPENDITURES NIA PREVIOUS BUDGET CHANGES N/A CHANGE ORDERS, FUNDS PREV. APPROVED N/A YEAR-TO-DATE BUDGET BALANCE N/A BUDGET CHANGE THISAIT N/A AMOUNT REQUESTED THIS AIT N/A REVISED BUDGET TOTAL (Total Budget plus Transfers) N/A REVISED TOTAL PROJECT BUDGET $0.00 AMENDED PROJECT AMOUNT $0.00 REQUIRES BOARD POLICY ACTION? NOT APPLICABLE If YES, explain in ADDITIONAL INFORMATION section Page 1 of2 Originator Date CONCURRENCES: Date ure ate apartment ~-t{./c.1.4.(i,.. u /z... / 'i, Si na re Date Assistant General Manager (Or Designee) ADDmONAL INFORMATION (Background and/or Summary) ATTACHMENTS TO '~MITTEE AGENDA (Lisi): 1. FAHR Committee Meeting Minutes dated 5-14-97. ATTACHMENTS TO JOINT BOARDS AGENDA (List) 1. Attached is a draft of the Finance, Administration and Human Resources meeting minutes of May 14, 1997. These minutes were submitted to the Joint Boards at their May 28, 1997 meeting. GGS:lc c: Department Head AGM-Administration AGM-Operations General Manager Revised 04/10197 H:\WP.DTA\FIN\2210\CRANE\FPC.MTG\FAHR.97\IUNE\AITMIN06.97 Page 2 of2 REVISED DRAFT MINUTES OF FINANCE, County Sanitation Districts of Orange County, California P.O. Box 8127 • 10844 Ellis Avenue Fountain Valley, CA 92728-8127 Telephone: (714) 962-2411 ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Wednesday. May 14. 1997. 5:30 P.M, A meeting of the Finance, Administration and Human Resources Committee of the County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California was held on Wednesday, May 14, 1997, at 5:30 p.m., at the Districts' Administrative Offices. ROLL CALL The roll was called and a quorum declared present, as follows: Committee Directors Present: George Brown, Chair John J. Collins, Joint Chair Jan Debay Barry Denes Norman Z. Eckenrode Mark A. Murphy Mark Schwing William G. Steiner Thomas R. Saltarelli Peer Swan, Vice Joint Chair Committee Directors Absent : None Other Directors Present: None APPOINTMENT OF A CHAIR PRO TEM No appointment was necessary. PUBLIC COMMENTS No comments were made. APPROVAL OF MINUTES Staff Present: Donald F. McIntyre, General Manager Blake P. Anderson, Assistant General Manager Judith A. Wilson, Assistant General Manager Ed Hodges, Director of General Services Admin. David Ludwin, Director of Engineering Bob Ooten, Director of Operations & Maintenance Mike Peterman, Director of Human Resources Gary Streed, Director of Finance Chris Dahl, Information Technology Manager Linda Eisman, Training Manager Steve Kozak, Financial Manager Mike Wh_ite, Controller Greg Mathews, Principal Administrative Analyst Rob Thompson, Plant Automation Manager Bill Webster, Operations Specialist Doug Cook, Chief Operator Lisa Lorey, Human Resources Manager Lenora Crane, Committee Secretary Others Present: Mark Conway, Insurance Broker It was moved, seconded and duly carried to approve the draft minutes of the April 9, and April 16, 1997, meetings of the Finance, Administration and Human Resources Committee. Minutes of Finance, Admi1 ~d Human Resources Committee Page 2 May 14, 1997 REPORT OF THE COMMITTEE CHAIR The Committee Chair had no report. REPORT OF THE GENERAL MANAGER • General Manager Don McIntyre advised the Committee that the Senate Local Government Committee hearing regarding the Districts' consolidation has been moved to June 18. • Mr. McIntyre reported that we continue to get reports from the hearing officers involved in the post-dismissal hearings in support of the Districts' findings. One of the appellates has withdrawn his appeal; the fourth verdict is due this week; and there are four separate hearing officers engaged in the appeals process. REPORT OF ASSISTANT GENERAL MANAGER-ADMINISTRATION • Judy Wilson reported that the Third Quarter Financial and Operational Report was included in the agenda package and appears on the Consent Calendar. The total cost per million gallons have dropped to $511 as of April 30. This figure should be closer to $525 by year end, even with the June accrual. • Mrs. Wilson updated the Committee on some issues regarding the Districts' consolidation efforts and the status of the Pringle Bill, AB 694, relating to LAFCO and the proposal to give them authority to reallocate the reserves of special districts. It is now a two-year bill. REPORT OF ASSISTANT GENERAL MANAGER -OPERATIONS The Assistant General Manager of Operations had no report. REPORT OF THE DIRECTOR OF FINANCE • Finance Director Gary Streed advised the Committee that the monthly Treasurer's Report was distributed prior to the meeting in accordance with policy. • Mr. Streed further advised the Committee that the presentation listed as Item number 8 on the Agenda will be delivered at the June meeting instead of this evening. REPORT OF THE DIRECTOR OF HUMAN RESOURCES • The Director of Human Resources Mike Peterman introduced and welcomed Lisa Lorey, who has recently been appointed as Human Resources Manager, and Mark Conway who represents Burnham Benefits Insurance Services, the Districts' new health benefits insurance broker. Mark has been working with Lisa Lorey in resolving most of the employee insurance problems. • Mr. Peterman advised that he received the broad banding report last night and is currently in the process of reviewing it. He will make a presentation on the report at the June meeting. REPORT OF THE DIRECTOR OF GENERAL SERVICES ADMINISTRATION The Director of General Services Administration had no report. Minutes of Finance, Adrr, ~nd Human Resources Committee Page 3 ~ I May 14, 1997 REPORT OF THE DIRECTOR OF COMMUNICATIONS The Director of Communications had no report. REPORT OF GENERAL COUNSEL General Counsel had no report. CONSENT CALENDAR ITEMS (A -F) A. FAHR97-26: 8. FAHR97-27: C. FAHR97-28: D. FAHR97-29: E. FAHR97-30: F. FAHR97-32: RECEIVE AND FILE TREASURER'S REPORT FOR THE MONTH OF APRIL 1997 (All Districts): The April Treasurer's Report was handed out at the FAHR Committee meeting in accordance with the Board-approved Investment Policy, and in conformance to the Government Code requirement to have monthly reports reviewed within 30 days of month end. RECOMMENDED ACTION: Receive and file Treasurer's Report for the month of April 1997 and forward to the Joint Boards. CERTIFICATES OF PARTICIPATION (COP) REPORT (All Districts): RECOMMENDED ACTION: Receive and file this information-only item. EMPLOYMENT STATUS REPORT (All Districts): Total head count at the Districts as of April 21, 1997 RECOMMENDED ACTION: Receive and file this information-only item. RECEIVE AND FILE QUARTERLY INVESTMENT MANAGEMENT PROGRAM REPORT FOR THE PERIOD JANUARY 1 THROUGH MARCH 31, 1997 (All Districts) RECOMMENDED ACTION: Receive and file this information-only item PROPOSED CHANGE IN DISABILITY PROGRAM (All Districts): To be effective July 1, 1997. RECOMMENDED ACTION: Change disability insurance carrier to Fortis and authorize the Human Resources Director to negotiate change with the unions. THIRD QUARTER FINANCIAL AND OPERATIONAL REPORT COVERING THE PERIOD ENDED MARCH 31, 1997 RECOMMENDED ACTION: Staff recommends that the Committee review, approve and forward the 1996-97 Third Quarter Financial and Operational Report for the period ended March 31, 1997, to the Joint Boards. COMMITTEE DISCUSSION: In response to Chair Brown, Mr. Peterman advised that the Districts' two-year disability benefits were insufficient, therefore, he asked his staff to survey other agencies. The survey found that most other public agencies had disability coverage to Minutes of Finance, Admil hd Human Resources Committee Page 4 May 14, 1997 age 65. When Robert F. Driver was asked to solicit bids for Long-Tenn Disability benefits, Driver quoted the Districts a cost increase of $200,000 -which was too expensive. Mark Conway was able to find the Districts Long-Tenn Disability coverage to age 65 at a savings to the Districts of $15,000 annually. Director Swan requested that the monthly Employment Status Report include a table and graph showing the month-to-month employment changes. MOTION: A motion was made, seconded and unanimously carried to approve the recommended actions for items specified as A through F under "Consent Calendar." ACTION ITEMS (Nos. 1 -4) The Chair requested that items 5 and 6 be presented out of Agenda order. However, the minutes will reflect those items in sequential order for continuity purposes. 1. FAHR97-21: PLANT AUTOMATION DEMONSTRATION (All Districts) COMMITTEE DISCUSSION: Ed Hodges introduced Rob Thompson, Plant Automation Manager and Bill Webster, Operations Supervisor. Ed advised that Bill Webster has been with the Districts 16 years and has worked with the Plant Automation Group since its inception. Bill is a Certified Operator. Rob and Bill proceeded to perform a "live" demonstration of the Districts five pumps in the Districts' Outfall Booster Pump Station. Automation of the pumps has allowed the department to reduce operator staff by five positions. MOTION: Received and filed. 2. FAHR97-23: REVIEW CAPITAL OUTLAY REVOLVING FUND FOR FISCAL YEAR 1997-98 (All Districts): COMMITTEE DISCUSSION: Director of Engineering David Ludwin gave a slide presentation and reviewed the proposed Capital Outlay Revolving Fund budget. The CORF budget will be presented to the Joint Boards in June as part of the Fiscal Year 1997-98 Budget. The 1997 CORF Budget is expected to be $54,226,200, an increase of 21 % over last year. During discussion, Director Swan requested that Dave rework the spreadsheets to report projects that are in construction, new projects and future projects. MOTION: Received and filed. 3. FAHR97-31: ACCUMULATED FUNDS POLICY {All Districts) COMMITTEE DISCUSSION: Director of Finance Gary Streed advised that in order to allow the Directors to have a better understanding of the accumulated funds policy, it appears a revision to the policy is needed. This project is included as part of the Strategic Plan, however, there is a need to accelerate the work. The recommendation to accelerate the financial plan phase of the Strategic Plan will not change the scope of work or compensation for the consultants. Minutes of Finance, Adn and Human Resources Committee Page 5 May 14, 1997 After discussion, the Committee requested staff to begin a preliminary assessment of what the replacement needs will be of the Districts over time, whether or not to fund depreciation, and review the pay-as-you-go portion of capital projects. An engineering firm may be needed for this type of analysis. Staff was requested to bring this item back to the September meeting. MOTION: Received and filed. 4. FAHR97-33: FIVE-YEAR STAFFING PLAN REPORT (All Districts) COMMITTEE DISCUSSION: Director of Human Resources Mike Peterman reported on the proposed five-year staffing plan and provided details on the administrative procedures that will be used to implement the targeted reductions. The staffing plan is expected to be met through attrition, retirements and cross-training. No lay-offs are planned. A 15% staffing reduction over three years, and more over five years, is the Districts' objective. The only reasons the Districts would change the staffing plan would be if there are changes in EPA and Air Quality requirements, and unforeseen problems with automation and cross-training, stated Don McIntyre. The Committee determined that some Collection System work would be contracted out, however the Districts would still achieve a net savings of $600,000 per year without jeopardizing the standard of service provided to the public. MOTION: Received and filed. INFORMATIONAL PRESENTATIONS (Nos. 5 -6) 5. STATUS REPORT ON PROPOSED USER FEE INCREASES IN DISTRICTS 1 AND 11 (Districts 1 and 11): (FAHR97-20) COMMITTEE DISCUSSION: Assistant General Manager Judy Wilson gave a status report of the proposed user fee increases. The Districts were asked to meet with City of Santa Ana staff, their City Manager David Ream, and District 1 Chair Director Pat McGuigan to review proposed increases in District 1. Santa Ana felt they were getting the steepest increases, while they are the poorest District. They asked CSDOC staff to try to find another way to bring down the proposed user fee increases to politically acceptable rates. Gary Streed prepared a new financial scenario for District 1 assuming 100% financing rather than 50% financing -50% pay-as-you-go. This had the result of significantly decreasing the steepness of the user fee increases, although their debt service was costlier in the long run. Having done this analysis of District 1, it was also prepared for District 11 Directors. Judy Wilson reported that Director Shirley Detloff, District 11 Chair, also requested a special meeting be scheduled for District 11 to consider this alternative. Meetings were held with the Boards of Districts 1 and 11 on Monday, May 12. The fee schedule for District 1 has been revised to reflect a 10-year program, and an annual increase of 9. 75%. Staff used a 100% borrowing formula rather than a 50% borrowing -50% pay-as- Minutes of Finance, Admh hd Human Resources Committee Page 6 May 14, 1997 you-go program. The District 11 fee schedule has been revised to reflect a 10-year program with a 17% high in 1997-98 and gradually declining to 10%, using the 100% borrowing methodology. District 11 was the only District not to increase fees to replace taxes lost in the 1992 property tax shift to the State. The ten-year fee schedules are more attractive to the investment community. First readings of the amended Ordinances were heard at the respective Board meetings incorporating these changes. In response to questions from the Committee, Judy advised that District 11 will be paying their highest fees in the first year to make up for the 1992-93 property tax shift to the State, when they chose not to increase rates. The two Districts will not be in total compliance with the Districts' Reserves Policy. District 1 will be putting off a major rehabilitation project until later in their fee schedule. Districts 1 and 11 have not deferred maintenance. Some Committee members expressed their concern that the rest of the Districts might have to carry part of Districts 1 and 11 's financial burden when the Districts are consolidated. 6. DART COMMITTEE PRESENTATION (All Districts) COMMITTEE DISCUSSION: Doug Cook, Chief Operator, gave a verbal presentation of the Districts Assessment and Reinvention Team Program, describing the mission of the DART program, the program's five phases and the costs of the program. The third phase of the program is expected to cost $50,000 and is included in next year's proposed budget. It is hoped that with plant automation projects, the Districts will receive a return on its investment in this program. INFORMATION ITEM -COMMITTEE CHAIR Chair Brown advised the Committee he recently received a letter from Committee Member Barry Denes regarding a workshop he attended on April 26. The letter contained some observations that Director Denes felt the FAHR Committee should examine. Chair Brown asked Director Denes to explain the contents of his letter to the Committee. Director Denes felt it was unfortunate that more Directors were not able to attend the Saturday workshop. He advised a slide demonstration given at the workshop was very interesting because it reviewed the actual costs for the services we provide, and the residential and commercial rates charged to our customers. There were 15 or 20 categories of commercial users. Director Denes felt the Committee should look at ways to make residential rates uniform across the board, and increase revenue by increasing commercial rates to reflect the true commercial costs of those users. Considerable discussion ensued regarding this issue. CLOSED SESSION The Chair reported the need for a closed session, as authorized by Government Code Sections 54957.6, to discuss and consider the item specified under "Closed Session" as Item 9(a) on the published Agenda. The Committee convened in closed session at 7:32 p.m. At 7:45 p.m., the Committee reconvened in regular session. Confidential Minutes of the Closed Session held by the Committee have been prepared in accordance with California Government Code Section 549057 .2 and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. Minutes of Finance, Adrr:'\nd Human Resources Committee Page 7 May 14, 1997 OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. FUTURE MEETING DATES The next Finance, Administration and Human Resources Committee Meeting is scheduled for Wednesday, June 11, 1997, at 5:30 p.m. ADJOURNMENT The meeting was adjourned at 7:50 p.m. Submitted by: ~~ Lenora Crane Finance, Administration and Human Resources Committee Secretary H:\WP .OTA \FIN\221 O\CRANE\FPC.MTG\FAHR.97\MA Y\5MIN.97 , OMTS: PDC: FAHR: 06/11/97 EXEC: STEER: JT.BDS: ALL AGENDA WORDING AND RECOMMENDED ACTION(S): Agenda Wording: ~ AGEN'. , ITEM TRANSMITTAL o2. CONTACT FOR INFORMATION (Orginator) 2210, Gary G. Streed, Ext. 2500 Division No., Name, and Extension RECEIVE AND FILE CERTIFICATES OF PARTICIPATION (COP) REPORT (All Districts) Recommended Action(s): 1. Receive and file this information-only COP Report of the Director of Finance. CEQA REVIEW: Project is Exempt: NOT APPLICABLE Date Notice of Exemption Filed: Negative Declaration Approved on Final EIR Approved on _ and Notice of Determination filed on _ CURRENT BUDGET/COST INFORMATION TOTAL BUDGETED AMT.: $ SOURCE: CORF JO DISTRICTS Schedule/Line Items: AMOUNT OF TRANSFER: Schedule/Line Item: TOTAL PROJECT BUDGET INFORMATION First Year in Budget: Master Plan Estimate: Year of First Costs: THIS AITNENDOR/PROJECT COST INFORMATION CURRENT YEAR BUDGET AMOUNT N/A ORIGINAL BUDGET TOTAL ORIGINAL BID, PO, CONTRACT AMOUNT WILL PROJECT REQUIRE ADDITIONAL PERSONNEL? NO If YES, state number: _ Permanent _ Limited Term DATE OF MOST RECENT BOAR~ ACTION ON THIS SPECIFIC ITEM: CURRENT YEAR- TO-OATE EXPENDITURES NIA PREVIOUS BUDGET CHANGES CHANGE ORDERS, FUNDS PREV. APPROVED N/A YEAR-TO-OATE BUDGET BALANCE N/A BUDGET CHANGE THISAIT AMOUNT REQUESTED THIS AIT REVISED BUDGET TOTAL (Total Budget plus Transfers) N/A REVISED TOTAL PROJECT BUDGET $0.00 AMENDED PROJECT AMOUNT $0.00 REQUIRES BOARD POLICY ACTION? NOT APPLICABLE If YES, explain in ADDITIONAL INFORMATION section Revised 04/10/97 H:\WP.DTA\FIN\2210\CRANE\FPC.MTG\FAHR.97\JUNE\FAHR97.35 Page 1 of2 Originator CONCURRENCES: Date ADDITIONAL INFORMATION (Background and/or Summary) ATTACHMENTS TO 1t'MITTEE AGENDA (List): 1. Graph -COP Rate History Report. ATTACHMENTS TO JOINT BOARDS AGENDA (List) 1. Since June 1995, the daily rate COP program remarketing agents have been PaineWebber for the Series "A" and the 1993 Refunding COPs, and J.P. Morgan for the Series "C" COPs. Most fixed rate Series "B" COPs have been refunded and the 1992 Refunding COPs have always been remarketed by PaineWebber in a weekly mode. The attached graph shows the variable interest rates on each of the daily rate COPs since the last report, and the effective fixed rate for the two refunding issues which are covered by an interest rate exchange agreement commonly called a "swap." Variable rates historically rise at the end of each calendar quarter, and especially at year-end, because of business taxes and statements. The rates decline to prior levels immediately in the following month. Staff will maintain our continuous rate monitoring and ongoing dialog with the remarketing agents and rating agencies to keep the Committee fully informed about developments in the program as they occur and at each meeting. GGS:lc c: Department Head AGM-Administration AGM-Operations General Manager Revised 04/10197 H:\WP .DTA\FIN\221 0\CRANE\FPC.MTG\FAHR.97\JUNE\FAHR97.35 Page 2 of2 ' :::c "'D r 0 cil )> c;; --t RATE(%) "C Ill z m 0 -cil t,.) c., .,,. (II CJ) )> 8 8 8 8 8 8 8 D. z ~ 0 3-Jul-96 .,, m :i IC5 Ill !:::! ::J 0 17-Jul-96 -~ ~ 0) w ~ -~ 25 31-Jul-96 (0 :;:o )> ~ --t m 14-Aug-96 )> :::c s:: en --t io 28-Aug-96 ..... 11-Sep-96 + 25-Sep-96 ,:, DI 9-Oct-96 0 i" ~ 0 2" 23-0ct-96 ""D ... $! ❖ 6-Nov-96 -I <-m '.ti 20-Nov-96 ~ :::c -ca DI 4-Dec-96 CJ) ::J -I + 18-Dec-96 0 ~ )> C) en 2-Jan-97 :::0 I "C m + 15-Jan-97 ""D 0 en 29-Jan-97 :::0 8 -I i> ::J 12-Feb-97 en I "C 26-Feb-97 12-Mar-97 26-Mar-97 9-Apr-97 23-Apr-97 7-May-97 21-May-97 For Bd. Sec, ll-".l.!!!:t AGEN~-!\ a ,., • COMM. INFO. ITEM ~ "' ITEM ~ " • ,:: COMM. ACTION ITEM 'I- • JT. BDS. CONSENT TRANSMITTAL \L~ ~ • JT. BDS. DISCUSSION -t~=7 (NON-CONSENT) ~ • PUBLIC HEARING JT. BDS. MEETING DATE . JT. BDS. AGENDA ITEM NO. 3. MEETING DATE COMM. ID. NO. DISTRICT NO. CONTACT FOR INFORMATION OMTS: OMTS (Originator) PDC: PDC FAHR: 6/11/97 fAHR 'l. z-2,~ 2520, Mike Pian, Ext. 2105 EXEC: EXEC All Division ~2Na e, and Extension STEER: STEER JT.BDS: AGENDA WORDING AND RECOMMENDED ACTION(S): Agenda Wording: EMPLOYMENT STATUS REPORT: Total headcount at the Districts as of May 19, 1997. Recommended Action(s): 1. Receive and file the Employment Status Report. CEQA REVIEW: Project is Exempt: NOT APPLICABLE DATE OF MOST RECENT BOARD ACTION ON THIS SPECIFIC Date Notice of Exemption Filed: ITEM: Negative Declaration Approved on Final EIR Approved on_ and Notice of Determination filed on_ NIA CURRENT BUDGET/COST CURRENT YEAR CURRENT YEAR-YEAR-TO-DATE REVISED BUDGET INFORMATION BUDGET AMOUNT TO-DATE BUDGET BALANCE TOTAL EXPENDITURES (T olal Budget plus Transfers) TOTAL BUDGETED AMT.:$ NIA NIA NIA NIA SOURCE: CORF JO DISTRICTS Schedule/Line Items: AMOUNT OF TRANSFER: Schedule/Line Item: TOTAL PROJECT BUDGET ORIGINAL PREVIOUS BUDGET BUDGET CHANGE REVISED TOTAL INFORMATION BUDGET TOTAL CHANGES THIS AIT PROJECT BUDGET First Year in Budget: NIA NIA NIA $0.00 Master Plan Estimate: Year of First Costs: THIS AITNENDOR/PROJECT COST ORIGINAL BID, CHANGE ORDERS, AMOUNT AMENDED INFORMATION PO, CONTRACT FUNDS PREV. REQUESTED THIS PROJECT AMOUNT APPROVED AIT AMOUNT NIA NIA NIA $0.00 WILL PROJECT REQUIRE ADDITIONAL PERSONNEL? NO REQUIRES BOARD POLICY ACTION? NOT APPLICABLE If YES, state number: _ Permanent -Limited Term If YES, explain in ADDITIONAL INFORMATION section Revised 05/14/97 Page 1 of2 H:\WP. DTA\HR\2520\STEEVES\Aln697.AIT CSDOC e P.O. Box 8127 e Fountain Valley, CA 92728-8127 e (714) 962-2411 CONCURRENCES: ignature Department Head (Or Designee) ~a)t16"<.- Sign~ Assistant General Manager (Or Designee) Date Date c..-z--TI Date (p/z./'li Date ADDITIONAL INFORMATION (Background and/or Summary) ATTACHMENTS TO COMMITTEE AGENDA (List): 1. May 19, 1997 E' ',iyment Status Report. 2. Performance tc dar Staffing Plan ATTACHMENTS TO JOINT BOARDS AGENDA (List) 1. The Districts have a Full-Time Equivalent (FTE) headcount of 540.75 as of May 19, 1997. The actual body count is 550. The current FTE headcount is equivalent to a 13.3% reduction from the budgeted 624 positions. The one- month turnover rate for May, 1997 was .36%. There were no external hires during May. Total external hires this fiscal year has been 12 (10 FTEs). The districtE are currently seeking internal or external candidates for the following replacement positions: Engineer (O&M), Engineer (2 positions, Design Engineering), Engineer (Construction Management), Engineer (2 positions, Plant_ Automation Support), Programmer (IT Hardware Support), Collection Facilities Worker I (4 positions, Collections Facilities Mtce.), and Senior Engineer (Design Engineering). /ps c: Department Head AGM-Administration AGM-Operations General Manager Revised 05/14/97 H:\WP .DTA\HR\2520\STEEVES\AIT\697 .AIT Page 2 of 2 Employment Status Report Run Date: 19-May-97 . Regular Regular Total Regular Part-time Part-time Actual Vacant Total .. Fu/I-time 20 hours 30hours Contract Intern LOA Headcount Positions Positions 2150 -General Management Administration 6 0 0 0 0 0 6 0 6 2160 -Board Secretary 1 0 0 0 0 0 1 0 1 2190 -Communications 8 0 1 0 0 0 9 0 9 Total General Management 15 0 0.75 0 0 0 16 0 16 2210 -Finance Administration 4 0 0 0 0 0 4 0 4 2220 -Accounting 20 0 0 0 0 0 20 0 20 2230 -Purchasing & Warehousing 13 0 1 0 0 1 15 2 17 Total Finance 37 0 0.75 0 0 1 39 2 41 2410 -General Services Administration 6 0 0 0 1 0 7 0 7 2420 -IT Hardware Support 4 0 0 2 0 0 6 0 6 2430 -IT Software Support 8 0 0 0 0 0 8 1 9 2440 -Plant Automation Support 6 0 0 0 0 0 6 0 6 2450 -Collection Facilities Maintenance 13 0 0 0 0 0 13 18 31 2460 -Plant Facilities 38 0 0 0 0 3 41 5 46 Total General Services Admin. 75 0 0 2 0.5 3 81 24 105 2520 -Human Resources 5 2 1 0 0 0 8 1 9 2530 -Safety & Emergency Response 5 0 0 0 1 0 6 0 6 2540 -Education & Training 6 0 0 0 0 0 6 0 6 Total Human Resources 16 1 0.75 0 0.5 0 20 1 21 3410 -Operations & Maintenance Admin. 15 0 0 1 3 0 19 2 21 3420 -0 & M Scheduling 4 0 0 0 0 0 4 2 6 3430 -Plant Operations 1 35 0 0 0 0 2 37 5 42 3440 -Plant Operations 2 43 0 0 0 0 0 43 11 54 3450 -Mechanical O & M 52 0 0 0 0 0 52 10 62 3460 -Electrical O & M 26 0 0 0 0 0 26 1 27 3470 -Instrumentation O & M 31 0 0 0 0 1 32 1 33 3490 -Central Generation Operations 13 0 0 0 0 0 13 0 13 Total Operations & Maintenance 219 0 0 0.25 1.5 3 226 32 258 3510 -Technical Services Administration 3 0 0 0 3 0 6 3 9 3550 -Environmental Compliance & Monitoring 18 0 0 2 0 1 21 1 22 3580 -Environmental Sciences Laboratory 33 2 2 0 0 0 37 0 37 3590 -Source Control 38 0 0 0 0 0 38 2 40 Total Technical Services 92 1 1.5 2 1.5 1 102 6 108 3710 -Engineering Administration 2 0 0 0 0 0 2 0 2 3720 -Design Engineering 21 0 1 0 1 0 23 4 27 3730 -Engineering Planning 4 0 0 0 0 0 4 1 5 3790 -Construction Management 31 0 0 5 1 0 37 4 41 Total Engineering 58 0 0.75 5 1 0 66 9 75 Total Staffing u -~ 612 2 4.5 9.25 5 8 550 74 624 H:lexcel.etalhr\open\empdiv.xls Total FTE Count 540.751 Performance to 5-Y ear Staffing Plan 640 -r-----------------------------, r 620 600 I.,_ e ..a • I-+-FTE Headcount I I 580 ~ -• -• -.. • -• -• -•. -·1 5601 ~~~ -----. ----. -----·-• 5401 ••• I 520 -;------------------------------1 c-500 -+---.----r----,------,-------,----,-,---,---,----,-----,---,---,---,--.-----,-----,-------~-r--r---r-------r----,--I JASON DJ FM AM J1J AS ON DJ FM AM J I FY 96-971 I FY 97-98 I r" -,.,._~ OMTS: PDC: FAHR: 11 Jun 97 EXEC: STEER: JT.BDS: 25 Jun 97 ALL AGENDA WORDING AND RECOMMENDED ACTION(S): Agenda Wording: AGEN ~ ITEM TRANSMITTAL '/, CONTACT FOR INFORMATION (Originator) 2210,S.Kozak,2504 Division No., Name, and Extension ANNUAL RENEWAL OF THE DISTRICTS' ALL-RISK PROPERTY AND EARTHQUAKE INSURANCE PROGRAM FOR THE PERIOD JUNE 25, 1997 TO JUNE 25, 1998 (All Districts) Recommended Action(s): 1. Renew the Districts' All-Risk Property and Earthquake Insurance Program for the period June 25, 1997 to June 25, 1998, in an amount not to exceed $1,136,525. CEQA REVIEW: Project is Exempt: NOT APPLICABLE Date Notice of Exemption Filed: Negative Declaration Approved on Final EIR Approved on _ and Notice of Determination filed on _ CURRENT BUDGET/COST CURRENT YEAR INFORMATION BUDGET AMOUNT TOTAL BUDGETED AMT.:$ $1,239,450 SOURCE: CORF JO DISTRICTS Schedule/Line Items: AMOUNT OF TRANSFER: . Schedule/Line Item: TOTAL PROJECT BUDGET ORIGINAL BUDGET INFORMATION TOTAL First Year in Budget: Master Plan Estimate: Year of First Costs: THIS AITNENDOR/PROJECT COST ORIGINAL BID, PO, INFORMATION CONTRACT AMOUNT $1,136,525.00 WILL PROJECT REQUIRE ADDITIONAL PERSONNEL? NO If YES, state number: _ Permanent _ Limited Term Revised 05/14/97 H :\WP .DTA \FIN\221 0\CRANE\F AH R\F AH R.97\JUNE\F AH R97.37 DATE OF MOST RECENT BOARD ACTION ON THIS SPECIFIC ITEM: June 26, 1996 CURRENT YEAR-YEAR-TO-OATE REVISED BUDGET TO-DATE BUDGET BALANCE TOTAL EXPENDITURES (Total Budget plus Transfers) N/A NIA N/A PREVIOUS BUDGET BUDGET CHANGE REVISED TOTAL CHANGES THISAIT PROJECT BUDGET $0.00 CHANGE ORDERS, AMOUNT AMENDED FUNDS PREV. REQUESTED THIS PROJECT APPROVED AIT AMOUNT $0.00 REQUIRES BOARD POLICY ACTION? YES If YES, explain in ADDITIONAL INFORMATION section Page 1 of2 Date Date ADDITIONAL INFORMATION (Background and/or Summary) Background ATTACHMENTS TO· .}MITTEE AGENDA (List): 1. Broker of Record Letter ATTACHMENTS TO JOINT BOARDS AGENDA (List) 1. Broker of Record Letter This agenda item recommends the annual renewal of All-Risk Property and Earthquake insurance coverage for the Districts for the period June 25, 1997 through June 25, 1998. The All-Risk insurance program provides comprehensive coverage for Districts' real and personal property from all perils including fire, flood, earthquake, and business interruption. The Districts' current All-Risk program covers the Districts' property with a $200 million blanket loss limit for all perils, and with a $30 million sublimit for earthquake damage. The deductible for earthquake-related claims is subject to .a $250,000 minimum per occurrence. The deductible for all other perils is $25,000 per occurrence. Multiple insurance carriers underwrite the program to distribute risk exposure and to ensure competitively bid premiums. Thus, the Districts' premium costs are controlled while obtaining maximum coverage levels for the Districts. 1997-98 Renewal Cycle The 1997-98 All-Risk program is recommended for renewal with a $200 million blanket loss limit for all perils, and with a $10 million increase in the sublimit for earthquake coverage; from $30 to $40 million. The deductibles remain as described above. At the deadline for this report, Robert F. Driver Associates, the Districts' Broker of Record, marketed the Districts' program to more than twenty insurance firms for the 1997-98 renewal cycle. As a result of Driver's aggressive marketing efforts, together with improvements in the capacity and pricing of the property and casualty insurance market, the 1997-98 program will provide the Districts with increased earthquake coverage, while at the same time, it will lower the Districts' premium costs by at least $102,925 from last year's premium. The attached Driver letter summarizes coverage and cost information for the 1997-98 All-Risk insurance renewal. The premium cost for FY 1997-98 will not exceed $1,136,525. Staff will inform the FAHR Committee of actual premium costs at the June Committee meeting. Recommended Action Staff recommends that the Finance, Administration & Human Resources Committee renew the Districts' All-Risk Property and Earthquake Insurance Program for the period June 25, 1997 to June 25, 1998, as presented in this report, in an amount not to exceed $1,136,525. SVK c: Department Head AGM-Administration A GM-Operations General Manager Revised 05114197 H:\WP.DTA\FIN\2210\CRANE\FAHR\FAHR.97\JUNE\FAHR97.37 Page 2 of 2 .. I .I I JUN-03-97 714756271~ I T·BOT P.OZ/03 Job-260 ROBERT F. DRIVER ASSOCIATES • COMPLETE INSURANCE BOND SEllV1CE • Mr. Steve K.cmk, Financial Manager County Sanitati<ill Dilltricts of Orange County P.O. Box 8127 Fountain Valley, CA 92728-8127 Re: All Risk Property and Earthquw Inmnmce Program Rcnewal 1997-1998 Dear Steve: Confinniag our discussions, we haw now concluded our marketing ncgoiiatioos with insurance companies and are able to propose coverage at a $200,000,000 limit of liability with a $40,000,000 canbquakc and flood sub-Umlt of Uablllty etrecuve June 25, 1997 at a $1,136.525 amwa1 premium inclusive of taxes and fees. Please note that we arc fiDalizing an excess layer, but are able to confirm that costs will not exceed S1,136,S2S and may he ,lightly lower. This renewal progmm fulfills the marketing_ strategy jointly developed during the past duee months with your sieoificant input specifically to decrease costs and to increase earthquake coverage as marketplace conditions continue to gradually improve. While the marketplace still bas yet UJ Rml11l to 1M compeiitive levels prim to the 1994 Northridgc earthquake, we are nonetheless gratified with the results of our aggressive efforts in increasing earthquake coverage by 33% (S 10,000,000) and cutting premium by 8% ($102,125). 4041 IIACAK11IUR BLVD .. SUrIE JOO, P.O. BOX 6450, NEWPOKT BEACH, CAUFORNIA 92658-6450 (714) 756-0271 • FAX (714) 756-27JJ • UC. I OOB4ffl I •••:' JUN-03-97 13:55 From:ROBERT F nRIVER ASSOCIATES 7147562713 _ -T-807 P.03/03 Job-260 I June 3. 1997 Mr. Steve Koak. Financial Manager County Sanitation Districts of Orange County · Plsel Our IChedulc of iDsUlers with their respective participation and a policy summary briefly ddBiling the provision of coverage under the broad mamlSCript policy will follow under scpaate cover. Sincerely, DHM:rp OMTS: PDC: FAHR: 11 Jun 97 EXEC: STEER: JT.BDS: 25 Jun 97 ALL AGENDA WORDING AND RECOMMENDED ACTION(S): Agenda Wording: -------, AGEN[ ~ ITEM TRAN SMITTAL CONTACT FOR INFORMATION (Originator) 2210,S.Kozak,2504 Division No., Name, and Extension ANNUAL RENEWAL OF THE DISTRICTS' GENERAL LIABILITY AND EXCESS LIABILITY INSURANCE PROGRAM FOR THE PERIOD JULY 1, 1997 TO JULY 1, 1999 (ALL DISTRICTS) Recommended Action(s): 1. Renew the Districts' General Liability and Excess Liability Insurance Program for the period July 1, 1997 to July 1, 1998, in an amount not to exceed $125,000. 2. Renew the Districts' General Liability and Excess Liability Insurance Program for the period July 1, 1998 to July 1, 1999, in an amount not to exceed $120,000. CEQA REVIEW: Project is Exempt: NOT APPLICABLE Date Notice of Exemption Filed: Negative Declaration Approved on Final EIR Approved on _ and Notice of Determination filed on - CURRENT BUDGET/COST CURRENT YEAR INFORMATION BUDGET AMOUNT TOTAL BUDGETED AMT.: $ $125,000 SOURCE: CORF JO DISTRICTS Schedule/Line Items: AMOUNT OF TRANSFER: Schedule/Line Item: TOTAL PROJECT BUDGET ORIGINAL BUDGET INFORMATION TOTAL First Year in Budget: Master Plan Estimate: Year of First Costs: THIS AITNENDOR/PROJECT COST ORIGINAL BID, PO, INFORMATION , .• CONTRACT AMOUNT $125,000.00 WILL PROJECT REQUIRE ADDITIONAL PERSONNEL? NO If YES, state number: _ Permanent _ Limited Term Revised 05/14197 H:\WP.DTA\FIN\2210\CRANE\FAHR\FAHR.97\JUNE\FAHR97.38 DATE OF MOST RECENT BQABQ ACTION ON THIS SPECIFIC ITEM: CURRENT YEAR-YEAR-TO-DATE REVISED BUDGET TO-DATE BUDGET BALANCE TOTAL EXPENDITURES (Total Budget plus Transfers) N/A NIA N/A PREVIOUS BUDGET BUDGET CHANGE REVISED TOT AL CHANGES THIS AIT PROJECT BUDGET $0.00 CHANGE ORDERS, AMOUNT AMENDED FUNDS PREV. REQUESTED THIS PROJECT APPROVED AIT AMOUNT $0.00 REQUIRES BOARD POLICY ACTION? YES If YES, explain in ADDITIONAL INFORMATION section Page 1 of 2 ).:J'UNC,:/- Date Date Date Date ADDITIONAL INFORMATION (Background and/or Summary) Background ATTACHMENTS TO ,,. MITTEE AGENDA (List): 1. ATTACHMENTS TO JOINT BOARDS AGENDA (List) 1. This agenda item recommends the annual renewal of the Districts' General Liability and Excess Liability Insurance Program for the two-year period July 1, 1997 to July 1, 1999. The Districts' current liability insurance program, implemented on July 1, 1996, provides the Districts' with comprehensive coverage for property damage, and personal and bodily injury. The program was structured to also include Employment Practices, and Public Officials Errors & Omissions coverages. 1997-98 Renewal Cycle The Districts' liability program covers liability exposure for the Districts through a $10 million primary layer, plus an additional $15 million excess or umbrella layer of coverage. This year, the Employment Practices portion of the coverage has been enhanced from a $2 million sublimit to the full $25 million limit. The deductible for the liability insurance program is $100,000 per occurrence. At deadline for this report, Robert F. Driver Associates, the Districts' Broker of Record, was in its final phase of marketing efforts with the insurance carriers to renew liability coverage for FY 1997-98, at a combined limit of $25 million, with a $100,000 deductible. While pricing remains somewhat restrictive in today's liability insurance market, the Districts' Broker of Record expects to obtain a reduction of at least 2% ($2,500) from last year's annual premium cost of $125,000. Additionally, if the Districts will commit to a two-year renewal, the insurance carriers will provide a further guaranteed premium reduction of 5% ($6,125) in the second year. Staff will inform the FAHR Committee of actual premium reductions at the June Committee meeting. Recommended Action Staff recommends that the Finance, Administration & Human Resources Committee: 1. Renew the Districts' General liability and Excess Liability Insurance Program for the period July 1, 1997 to July 1, 1998, in an amount not to exceed $125,000; and 2. Renew the Districts' General Liability and Excess Liability Insurance Program for the period July 1, 1998 to July 1, 1999, in an amount not to exceed $120,000. SK c: Department Head AGM-Administration A GM-Operations General Manager Revised 05/14197 H:\WP.DTA\FIN\2210\CRANE\FAHR\FAHR.97\JUNE\FAHR97.38 Page 2 of2 ---·- • For Bd. Sec, Use ~ AGENP-~ ~ D COMM. INFO. ITEM ITEM I~ D COMM. ACTION ITEM D JT. BDS. CONSENT TRANSMITTAL I ~ D JT. BDS. DISCUSSION ~--ry; (NON-CONSENT) D PUBLIC HEARING ~ JT. BDS. MEETING DATE JT. BDS. AGENDA ITEM NO. ~. ' ~ MEETING DATE COMM. ID. NO. DISTRICT NO. CONTACT FOR INFORMATION OMTS: OMTS (Originator) PDC: PDC FAHR: 6/11/97 FAHR <J..1-37i._ ALL 2540, Linda Eisman, 2104 EXEC: EXEC STEER: STEER Division No., Name, and Extension JT.BDS: AGENDA WORDING AND RECOMMENDED ACTION(S): Agenda Wording: RECEIVE AND FILE STAFF SUMMARY REPORT ON TRAINING FOR THIRD QUARTER FISCAL YEAR 96/97. Recommended Action(s): 1. Receive and file staff summary report on Training for third quarter fiscal year 96/97. CEQA REVIEW: Project is Exempt: NOT APPLICABLE DATE OF MOST RECENT BOARD ACTION ON THIS SPECIFIC Date Notice of Exemption Filed: ITEM: Negative Declaration Approved on Final EIR Approved on_ and Notice of Determination filed on_ CURRENT BUDGET/COST CURRENT YEAR CURRENT YEAR-YEAR-TO-DATE REVISED BUDGET INFORMATION BUDGET AMOUNT TO-DATE BUDGET BALANCE TOTAL EXPENDITURES (Total Budget plus Transfers) TOTAL BUDGETED AMT.: $ N/A N/A N/A N/A N/A SOURCE: CORF JO DISTRICTS Schedule/Line Items: AMOUNT OF TRANSFER: Schedule/Line Item: TOTAL PROJECT BUDGET ORIGINAL PREVIOUS BUDGET BUDGET CHANGE REVISED TOTAL INFORMATION BUDGET TOTAL CHANGES THIS AIT PROJECT BUDGET First Year in Budget: NIA Master Plan Estimate: N/A NIA $0.00 Year of First Costs: THIS AITNENDOR/PROJECT COST ORIGINAL BID, CHANGE ORDERS, AMOUNT AMENDED INFORMATION PO,CONTRACT FUNDS PREV. REQUESTED THIS PROJECT AMOUNT APPROVED AIT AMOUNT N/A N/A N/A $0.00 WILL PROJECT REQUIRE ADDITIONAL PERSONNEL? NO REQUIRES BOARD POLICY ACTION? NOT APPLICABLE If YES, state number: _ Permanent -Limited Term If YES, explain in ADDITIONAL INFORMATION section Revised 05/14/97 A:\AIT5_21.97 Page 1 of 2 0 rigi n atCll___..-/" Signat ~ Signature Department Head (Or Designee) Si re Assistant General Manager (Or Designee) 5 ---zz-"17 Date Date ADDITIONAL INFORMATION (Background and/or Summary) c: Department Head AGM-Administration AGM-Operations General Manager Revised 05/14197 A:\AIT5_21 .97 ATTACHMENTS TO. -\'IMITTEE AGENDA {List): 1. Staff summa1. Jport on Training for third quarter fiscal year 96/97. ATTACHMENTS TO JOINT BOARDS AGENDA (List) 1. Page 2 of 2 June 2, 1997 BACKGROUND STAFF REPORT Human Resources Training Summary Report (Third Quarter FY 96/97) During the first three quarters of FY 96/97, the Human Resources Training Division conducted a total of 392 classes at a total cost of $172,733.00. This averaged to a cost of approximately $441.00 per class. Total attendance during this period was 5,862 which equates to an average cost of approximately $30.00 per student per class. Training efforts during FY 96/97 have primarily been focused on: (1) Implementation of a Safety Training Program designed to ensure CAUOSHA compliance; (2) Development and Implementation of a Back to Basics Supervisor/Management Training Program to address critical training needs identified during the recent investigation; (3) launching an Operations and Maintenance Cross-training Program which will allow us to become as competitive and efficient as possible; and (4) Providing Windows NT and other needed computer software training to employees as Departments were placed on the Windows NT server. FY 97/98 TRAINING PROGRAM The Districts FY 97/98 Training Program has been designed to meet the challenges we face in the coming year. It will focus on the following major areas: 1. Cross Training Our first priority will be to continue to implement a cross-training program to support the Districts' reinvention efforts. The Districts' goal is to provide an adaptive workforce by cross-training Operators, Mechanics, Electricians, Instrumentation Technicians and other staff. In order to accomplish this, we must: • Identify existing skills that cross craft or trade boundaries • Identify current individual skill gaps • Develop a training program that builds on the employees' existing technical capabilities • Identify existing training programs and resources • Define trai g requirements for O & M staff to ' ,ure, isolate and place plant equipment on-line that meets Operator Cerufication Program and Title 23 requirements • Develop an in-house Certification/Qualification Program The Districts' cross-training effort will result in increased flexibility in performance of 0 & M work, enabling productivity gains through attrition along with substantial efficiency gains and cost savings. 2. Back to Basics Supervisory/Management Training Program This program began with a module on "Dealing with Substance in the Workplace" and was officially kicked off by Don McIntyre and Judy Wilson who took turns at teaching the second module, "Understanding Your Role as a Member of the Districts' Management Team." Blake Anderson is scheduled to teach a module entitled "What it Takes to be a Good Boss" beginning in June 1997. He will be offering supervisors and managers an opportunity to have their employees anonymously perform assessments of what the employees feel are their managers and supervisor's strengths and weaknesses. Module 3 of the training included a self-assessment by the supervisors and managers of their managerial skills. The assessment will help them to: • Understand their on-the-job behavioral profile • Capitalize on their behavioral strengths • Increase their appreciation of different behavioral profiles • Enhance their team building skills by anticipating and minimizing conflict with others • Successfully motivate members of their work unit to become more productive Supervisors and managers are required to successfully pass a written exam on each module of the training program. Additional modules of the training are scheduled throughout this and the next fiscal year. 3. Computer Software Training Training in computer software programs to support the Districts move to Microsoft Office 97 will be the focus of computer training next fiscal year. We are investigating the feasibility of using Computer Based Training (CBT) programs to assist us in meeting our future computer software training needs. 4. Safety Training Programs Safety Training will be focused on the Districts' Integrated Emergency Response Plan and maintaining CAUOSHA regulated training requirements. In an effort to provide flexibility in the scheduling and attendance of safety training classes, we are developing internal safety trainers to provide training to Districts' staff as needed. This effort will also reap substantial cost savings for the Districts. 5. Automated Trainir ~egistration An automated training registration system will be developed and implemented to allow convenient on-line registration for training classes. 6. Ongoing Training Efforts Continually providing the highest quality, most cost-effective training available to meet individual departmental needs as identified in the Districts' Annual Training Plan. LE:dm C:\OFFICE\WPWIN\WPDOCS\AIT5.97 Training Classes By Category of Training (1st -3rd Quarter FY 96/97) Training Meetings 5% Technical Training 3% Team Building Training (DART) 2% Supervisory Training 3% Safety Training 57% Computer Training 9% General Training 18% Management Training 3% .. Training Costs by Department (1st -3rd Quarter FY 96/97) Technical Services 15% Engineering 11% O&M 45% General Mgmt Admin 6% Finance & Accounting 7% General Svcs Admin 11% ,. 1 Human Resources 5% J $70,000.00 $60,000.00 $50,000.00 $40,000.00 $30,000.00 $20,000.00 $10,000.00 $- ' I ~ ti.. 1---,. '· " I I ,_ ·1 ;] .. 1 • ... J~' 5-·•t ~--I I ~ "i" Computer Training ~ Training Costs by Category of Training (1st -3rd Quarter FY 96/97) ~ I ,fl t •• " f , ,, i'' '>, I ' - ·.11 : . • ! I ;_, ' I I I -' General Training " ' " I ~ ~ ,, I • ' I ' I 'I• . ,-. .,, I ,:-,· I I' I._ ,, -~ '., .n Management Safety Training Supervisory Team Building Technical Training Training Training Training (DART) . Training Meetings Training Costs by Category (1st -3rd Quarter FY 96/97) Supsrvisory Training 3% Technical Training 13% Team Building Workshops (DART) 9% Safety Training 23% Computer Training 11% General Training 28% Management Training 13% .... . _) I OMTS: PDC: FAHR: 11 Jun 97 EXEC: STEER: JT.BDS: 25 Jun 97 ALL AGENDA WORDING AND RECOMMENDED ACTION(S): Agenda Wording: AGENF,-_\ ITEM TRANSMITTAL 7. CONTACT FOR INFORMATION (Originator) 2210,S.Kozak,2504 2530,T.Josway,2140 Division No., Name, and Extension STATUS REPORT ON IMPLEMENTATION OF THE SAFETY & RISK MANAGEMENT POLICY REVIEW COMMITTEE Recommended Action(s): 1. Receive and file this information only. CEQA REVIEW: Project is Exempt: NOT APPLICABLE Date Notice of Exemption Flied: Negative Declaration Approved on Final EIR Approved on _ and Notice of Determination filed on_ CURRENT BUDGET/COST INFORMATION TOTAL BUDGETED AMT.: $ SOURCE: CORF JO DISTRICTS Schedule/Line Items: AMOUNT OF TRANSFER: Schedule/Line Item: TOTAL PROJECT BUDGET INFORMATION First Year in Budget: Master Plan Estimate: Year of First Costs: THIS AITNENDOR/PROJECT COST INFORMATION CURRENT YEAR BUDGET AMOUNT NIA ORIGINAL BUDGET TOTAL NIA ORIGINAL BID, PO, CONTRACT AMOUNT NIA WILL PROJECT REQUIRE ADDITIONAL PERSONNEL? NO If YES, state number: _ Permanent _ Limited Term Revised 05/14197 H:\WP .OTA \FIN\2210\CRANE\FAHR\FAHR.97\JUNE\RMSTATUS.AIT DATE OF MOST RECENT BOARD ACTION ON THIS SPECIFIC ITEM: CURRENT YEAR- TO-DATE EXPENDITURES NIA PREVIOUS BUDGET CHANGES NIA CHANGE ORDERS, FUNDS PREV. APPROVED NIA YEAR-TO-DATE BUDGET BALANCE NIA BUDGET CHANGE THISAIT NIA AMOUNT REQUESTED THIS AIT NIA REVISED BUDGET TOTAL (Total Budget plus Transfers) NIA REVISED TOTAL PROJECT BUDGET $0.00 AMENDED PROJECT AMOUNT $0.00 REQUIRES BOARD POLICY ACTION? NOT APPLICABLE If YES, explain in ADDITIONAL INFORMATION section Page 1 of 4 Originator CONCURRENCES: Date AOOmONAL INFORMATION (Background and/or Summary) Background ATTACHMENTS TC )~MITTEE AGENDA (List): 1. ATTACHMENTS TO JOINT BOARDS AGENDA (List) 1. In 1992, a Risk Management Task Force, consisting of various department and division heads, was formed for the purpose of reviewing and updating the insurance needs of the Districts. The Task Force was in existence until the second half of 1993. In 1996, staff initiated a series of projects to re-engineer and revitalize the Districts' insurance and risk management programs. This agenda item presents a status report covering implementation of the Safety & Risk Management Policy Review Committee, and other related risk management initiatives. Re-engineering Risk Management While the Districts' self-insurance funds and commercial insurance policies have been reviewed annually for budgetary purposes, in recent years there has not been a regular review of strategies and guidelines for the Districts' insurance and risk management programs. Recognizing the many organizational and operational changes occurring within the Districts, staff completed an evaluation of the Districts' existing insurance programs in early 1996. The study, which included benchmarking comparisons using a 1995 study, "Cost of Risk Evaluation (CORE) in State and Local Government," conducted by the Public Risk Management Association (PRIMA) and Deloitte & Touche, was presented to the Finance, Administration & Human Resources Committee (FAHR) in March 1996. In January of this year, the Districts participated in the first phase of the 1997-98 edition of the CORE study, by completing the PRIMA survey instrument. As a member of PRIMA, the Districts will receive a copy of the latest CORE study when it is released. Staff will review the Districts' insurance and risk management programs in comparison to the new benchmark study at that time. Liabijity Insurance Program The comparison of the Districts' risk management and insurance programs to the benchmarks identified in the CORE study indicated that the Districts' performance tracked reasonably well with current practices in the following areas: • Implementation of risk management function • Implementation of an in-house safety program • Maintaining a variety of specialty insurance coverages • Achieving and sustaining a low rate of workers' compensation costs Revised 0511 "'97 Page 2 of4 H:\WP .DTA\FIN\2210\CRANE\FPC.MTG\FAHR.97\JUNE\RMSTATUS.AIT ~- J ! At the same time, this initial bencfimarking exercise clearly indicated that the Districts would be better protected, in the long-term, by augmenting the $3.4 million Public Liability Self-Insurance Fund with some form of supplemental insurance coverage for catastrophic liability risk. In March 1996, the FAHR Committee authorized staff to solicit formal proposals for a general liability program. In May 1996, based on recommendations from the FAHR Committee, the Joint Boards selected a proposal from Robert F. Driver Associates, the Districts' Broker of Record, for a $25 million liability program, combining primary and excess levels of coverage to augment the Districts' self-insurance fund. The program was structured to also include a new coverage for the Districts -Employment Practices Coverage. The Districts' Liability insurance program became effective on July 1, 1996. Safety & Risk Management Policy Review Committee The development and implementation of the Liability insurance program was the first tangible result of staff efforts to re-engineer the Districts' approach to risk management. The second outcome was the rebirth of a task force for risk management issues. In May 1996, a joint proposal from the managers of Risk Management and Safety & Emergency Response was approved by Executive Management to broaden the scope of the existing staff-based Safety Policy Review Committee to be used in the associated capacity as a cross division/department sounding board for risk management policies and programs. This approach was recommended to achieve economies of scale through an existing committee, and to establish a cross-functional focus on safety, risk management, and loss control issues. The enhanced Safety & Risk Management Policy Review Committee held its first meeting in June 1996. In addition, representatives from the Districts' Broker of Record attend Committee meetings in an advisory capacity on an as- needed basis. Team Approach for Safety and Risk Management The joint proposal discussed above contained a second element which produced additional concrete results. Specifically, risk management staff augmented Safety Division resources, to complete several priority projects as listed below: • Updated Fleet Safety Policy, • Researched and developed a Districts' Weapons Policy • Reviewed effectiveness of the Districts' Medical Screening Program • Developed Contractor Safety Policy provisions for incorporation into Districts' contracts Risk Management Work Plan In general terms, benchmarking is a coordinated effort to develop a clear sense of where a particular program stands, at what level to set targets for improvement, and how to redesign processes for maximum performance. An essential part of benchmarking is a work plan which can be defined as the written organization of priorities, resources, and schedules to guide the achievement of improvement targets. To continue the momentum gained from our initial efforts to re-engineer the Districts' approach to risk management, staff has prepared a Multi-Year Risk Management Work Plan, a copy of which is included in Attachment "A." The Safety & Risk Management Policy Review Committee was involved in reviewing and refining the Work Plan. This is important as the Work Plan has the support of the managers who will be responsible for completing the tasks. In tum, this will help ensure that our current incremental improvement efforts will continue. Plant No. 2 Fire Recovery Before regular business hours the morning of January 13, 1997, the Plant No. 2 Construction Management trailer complex was destroyed by a structural fire. Fortunately, no one was injured. As per established protocols, Safety Revised 05114197 Page 3 of 4 H:\WP .DTA\FIN\221 0\CRANE\FPC.MTG\FAHR.97\JUNE\RMSTATUS.AIT & Emergency Response coordinated initial response and liaison with the Huntington Beach Fire Department. Risk Management Office staff has coordinated liaison with the Districts' Broker of Record, and Maxson Young Associates, the insurance adjuster firm retained by the insurance underwriters, as well as loss documentation and claim preparation. By way of status update on our recovery efforts, the Districts has received an advance of $100,000 on the final settlement amount. These funds have been placed in a deposit account, and have been used to reimburse eleven Districts employees who sustained loss of personal property in the fire. Total reimbursement to staff was $2,783. An inventory of Districts' property and equipment lost in the fire has been completed and replacement cost values have been assigned to all items. A claim totaling $45,082, has been prepared and submitted to the insurance adjuster who is currently reviewing it. Upon the adjuster's approval, advance funds will be used to ·procure replacement equipment. The trailers that were destroyed in the fire have been removed, and Engineering staff is preparing the plans and specifications to bid the purchase of replacement trailers. All costs associated with removal of the destroyed trailers, purchase of trailers, rental of portable office unit for Construction Management, and miscellaneous costs, are eligible for reimbursement and will be pursued when costs are known. Summary At its core, risk management involves the protection of the Districts' assets. Staff will continue to pursue opportunities to re-engineer and improve the Districts safety, insurance, and risk management programs using a more broadly defined concept of risk, where risks related to the Districts' day-to-day core business are identified at the point of origin, and effective solutions are implemented. Recommended Actjon Receive and file this information-only report. SK:lc c: Department Head AGM-Administration AGM-Operations General Manager Revised 0511-4197 H:\WP.DTA \FIN\221 0\CRANE\FPC.MTG\FAHR.97\JUNE\RMSTATUS.AIT Page 4 of4 RISK MANAGEMENT MUL Tl-YEAR WORK PLAN Goal: To coordinate Districts-wide Implementation of targeted safety Risk Management, and loss control activities through an integrated Work Plan. 1.1 Distributed IERP Volumes 1.2 Update as necessary. 2.1 Survey tracking systems used by similar agencies. 2.2 Recommend a tracking system for the Districts 2.3 Implement system 2.4 Revise system as necessary ~I~~ 3.1 Research risk mngt manuals of similar agencies 3.2 Locate outdated, or incomplete versions of Districts' Risk Management Manual 3.3 Prepare draft manual using current information 3.4 Circulate for review 3.5 Finalize, distribute 3.6 Update as necessary H:\WP.DTA\FIN\2210\KOZAK\GOALS\WORKPLAN.97 X X X X X X X X X X X X ATTACHMENT 11A11 I FY 99-00 Responsible ) X Page 1 of 5 Goal: To coordinate Districts-wide implementation of targeted safety Risk Management, and loss control activities through an Integrated Work Plan. 4.1 Research "best practices" insurance requirements, including of similar agencies 4.2 Approve and implement standard insurance provisions 4.3 Update as necessary 5.1 Research other contractor safety language to use as comparative reference 5.2 Draft language 5.3 Review language with Safety and Risk Management Committee for comments 5.4 Review language with sampling of existing contractors for their input 5.5 Revise language as necessary 5.6 Add language to Districts' standard contract 5.7 Conduct training for contractors 5.8 Perform random inspections for compliance H:\WP .OTA \FIN\221 0\KOZAK\GOALS\WORKPLAN.97 FY 99-00 X X X X X X X X X X X X X Page 2 of 5 Goal: To coordinate Districts-wide Implementation of targeted safety Risk Management, and loss control activities through an Integrated Work Plan. 6.1 Identify customers coming on-site to use services and general risk exposure 6.2 Draft policies and procedures to limit risk exposure and promote safe use of services 6.3 Implement policies/procedures and educate customers -require customers to sign acknowledgment upon use of service 6.4 Evaluate and revise if necessary 7.1 Identify job classification exposed to significant risk 7.2 Identify nature of risk and the related training procedures 7.3 Prioritize procedures needed to be written 7.4 Add procedures to policy manual and include them in basic safety training 7.5 Update as necessary H:\WP.DTA \FIN\221 0\KOZAK\GOALS\WORKPLAN.97 FY 99-00 Responsible X X X X X X X X X Page 3 of 5 Goal: To coordinate Districts-wide implementation of targeted safety Risk Management, and loss control activities through an Integrated Work Plan. 8.1 Quantify number and type of inspections currently taking place --- 8.2 Identify (by discussing with staff and underwriters) most effective/useful type of regularly scheduled inspection program 8.3 Identify (by discussing with staff and underwriters) most effective/useful type of regularly project- related program 8.4 Develop an inspection program (complete with inspection calendar and policies and procedures for inspections) 8.5 Implement inspection program 8.6 Evaluate and revise program as necessary 9.1 List general outsourcing opportunities and identify risk associated with these jobs 9.2 Research other service organizations for risk management guides/agreements regarding outsourcing H:\WP.DTA \FIN\221 0\KOZAK\GOALS\WORKPLAN.97 FY 99-00 Res pons Ible X X X X X X X X Page 4 of5 Goal: To coordinate Districts-wide Implementation of targeted safety Risk Management, and loss control activities through an Integrated Work Plan. 9.3 Develop policies and procedures specific to outsourcing that minimize Districts' and employees' exposure to risk 9.4 Implement program 9.5 Evaluate and revise program as necessary 10.1 Research capabilities of various claims & risk management information system 10.2 Determine needs of Districts' risk management program 10.3 Analyze alternatives and draft recommendations for further action 11.1 Research policies and procedures of similar agencies 11.2 Evaluate Districts' needs and exposures 11.3 Analyze alternatives and draft recommendations for further action H:\WP .DTA \FIN\221 0\KOZAK\GOALS\WORKPLAN.97 FY 96-97 FY 97-98 FY 98-99 FY 99-00 Responsible X X X X X X X X X Page 5 ofS )> C') -I -0 z --I m 3: en 0 COMM. INF.0'. ITT:M • COMM. ACTION ITEM D a:r: BOS. COlilSENT D m .aos1 D!SCl:JSSJ0N (N0N,.CONSENT,) I[] PUBUJG HEARING MEETING DATE OMTS: PDC: FAHR: 6/11/97 EXEC: STEER: JT.BDS: 6/25/97 For Bel, Sec: U COMM. ID. NO. DISTRICT NO. OMTS ____ _ PDC _ _,...._.,...""'"""',- lrAHR 9 7-'II All EXEC~---- STEER ___ _ AGENDA WORDING AND RECOMMENDED ACTION(S): Agenda Wording: Strategic Information Plan for Information Technology Recommended Action(s}: 1) Receive and file the Strategic Information Plan AGEN[ ITEM TRANSMITTAL 8. CONTACT FOR INFORMATION (Originator) Div. 2420, Chris Dahl, Ext. 2800 Division No., Name, and Extension Cl) 2) Authorize staff to proceed with the direction established within the Strategic Information Plan CEQA REVIEW: Project is Exempt: NOT APPLICABLE DATE OF MOST RECENT BOARD ACTION ON THIS SPECIFIC ITEM: Date Notice of Exemption Filed: Negative Declaration Approved on Final EIR Approved on _ and Notice of Determination filed on_ N/A CURRENT BUDGET/COST INFORMATION CURRENT YEAR CURRENT YEAR-YEAR-TO-DATE REVISED BUDGET TOTAL BUDGETED AMT.: $ SOURCE: CORF Schedule/Line Items: AMOUNT OF TRANSFER: TOTAL PROJECT BUDGET INFORMATION First Year in Budget: Individual projects will be presented as a part of the CORF budgets for FY 1997-98 and future years. Master Plan Estimate: Year of First Costs: THIS AITNENDOR/PROJECT COST INFORMATION BUDGET AMOUNT TO-DATE BUDGET BALANCE TOTAL EXPENDITURES (Total Budget plus Transfers) N/A N/A NIA N/A ORIGINAL PREVIOUS BUDGET BUDGET CHANGE REVISED TOTAL BUDGET TOTAL CHANGES THIS AIT PROJECT BUDGET ORIGINAL BID, PO, CONTRACT AMOUNT CHANGE ORDERS, FUNDS PREV. APPROVED See FY 1997 -98 CORF Budget AMOUNT REQUESTED THIS AIT AMENDED PROJECT AMOUNT WILL PROJECT REQUIRE ADDITIONAL PERSONNEL? REQUIRES BOARD POLICY ACTION? NO The personnel impact will be addressed in the 5-Year Staffing Plan. Revised 05/14/97 Page 1 of 2 ATTACHMENTS TO C ,,,nee AGENDA (Lisi): ~ 1. SIP Report will be~ ,lded at the Committee Meeting. Originator CONCURRENCES: ~ fl Signature Date Division M nager (Or Designee) t Signature Date Department Head (Or Designee) c;P-,.,,u?~ , uJ ,/4µ.,.. {, / 1.f/ '?1 Sign at Date Assistant General Manager (Or Designee) ADDITIONAL INFORMATION (Background and/or Summary) ATTACHMENTS TO JOINT BOARDS AGENDA (List) 1. The role of Information Technology at the Districts is changing. This past year, the IT Division has undergone a major amount of internal change. The management structure of the Division has been reorganized and is comprised of new senior level managers. The division is more customer focused and progressive in its views of IT. In order to be successful, in the future, IT must align itself with the critical goals of the Districts. To accomplish this, staff developed a Strategic Information Plan (SIP). In December 1996, staff began the SIP process, which included the development of a cross-departmental team, representing all of the customers of IT, and interviews with the Executive Management Team and other key staff. The objectives of this SIP were to develop a SIP for the Districts that: 1. Aligns Information Technology with the goals of the Districts 2. Plans for cross-functional sharing of data 3. Identifies and prioritizes all major IT projects 4. Lays a foundation for design and implementation 5. Establishes a strategic IT plan to live by Chris Dahl, Manager of Information Technology will be providing a brief overview of the SIP and will discuss the recommendations contained within the SIP. · Budget Information Implementation of the recommendations contained within the SIP have been addressed in next year's CORF budget. This information will be presented to the Committee as part of the discussion on the CORF budget. COD: cw c: Department Head AGM-Administration AGM-Operations General Manager Revised 05/14/97 Page 2 of 2 OMTS: PDC: FAHR: 06/11/97 EXEC: STEER: JT.BDS: 06/25/97 ALL AGENDA WORDING AND RECOMMENDED ACTION(S): Agenda Wording: AGENlr=_ ITEM TRANSMITTAL CONTACT FOR INFORMATION (Originator) 2210, Gary G. Streed, 2500 Division No., Name, and Extension PROPOSED FY 1997-98 JOINT WORKS OPERATING AND CAPITAL BUDGETS, AND 1997-98 INDIVIDUAL DISTRICTS' BUDGETS (All Districts) Recommended Action(s): 1. Staff recommends approval of the proposed Joint Works Operating and Capital Budgets for 1997-98 as follows: Joint Works Operating/Working Capital Worker's Compensation Self-Insurance Public Liability Self-Insurance Joint Works Capital Outlay Revolving $46,922,650 270,000 525,000 54,540,200 2. Staff recommends approval of the proposed Individual Districts' Budgets for FY 1997-98 as follows: District No. 1 District No. 2 District No. 3 District No. 5 District No. 6 District No. 7 District No. 11 District No. 13 District No. 14 CEQA REVIEW: Project is Exempt: NOT APPLICABLE Date Notice of Exemption Filed: Negative Declaration Approved on Final EIR Approved on _ and Notice of Determination filed on _ CURRENT BUDGET/COST INFORMATION CURRENT YEAR BUDGET AMOUNT TOTAL BUDGETED AMT.: $ SOURCE: CORF JO DISTRICTS Schedule/Line Items: AMOUNT OF TRANSFER: Schedule/Line Item: Revised 05/14197 H:\WP.DTA\FIN\2210\CRANE\FAHR\FAHR.97\JUNE\FAHR97.41 N/A $ 41,537,000 170,725,500 185,427,000 37,245,000 30,140,000 50,928,000 37,117,000 11,246,000 12,954,000 DATE OF MOST RECENT BOARD ACTION ON THIS SPECIFIC ITEM: CURRENT YEAR- TO-DATE EXPENDITURES NIA June 26, 1996 YEAR-TO-DATE REVISED BUDGET BUDGET BALANCE TOTAL (Total Budget plus Transfers) N/A N/A Page 1 of2 TOTAL PROJECT BUDGET ORIGINAL BUDGET -INFORMATION TOTAL First Year in Budget: Master Plan Estimate: Year of First Costs: ~ AITNENDOR/PROJECT COST ORIGINAL BID, PO, INFORMATION CONTRACT AMOUNT WILL PROJECT REQUIRE ADDITIONAL PERSONNEL? NO If YES, state number: _ Permanent _ Limited Term Originator CONCURRENCES: Date Date Date ADDITIONAL INFORMATION (Background and/or Summary) PREVIOUS BUDGET ' BUDGET CHANGE REVISED TOTAL CHANGES 1 THISAIT PROJECT BUDGET $0.00 CHANGE ORDERS, AMOUNT AMENDED FUNDS PREV. REQUESTED THIS PROJECT APPROVED AIT AMOUNT $0.00 REQUIRES BOARD POLICY ACTION? NO If YES, explain In ADDITIONAL INFORMATION section ATTACHMENTS TO COMMITTEE AGENDA (List): 1. 1997-98 Joint Works and Individual Districts' Budgets ATTACHMENTS TO JOINT BOARDS AGENDA (List) 1. 1997-98 Joint Works and lndlvldual Districts' Budgets The 1997-98 Budget is enclosed for the Committee's consideration. The Budget has been presented to the PDC and OMTS Committees at their regular June meetings in order to allow each Standing Committee an opportunity to review the proposal prior to the June Board meeting. The entire budget, including the individual Districts, is being presented for Board consideration on June 25. Although each Committee has had an opportunity to review the proposal, it remains the responsibility of the Finance, Administration and Human Resources Committee to recommend approval of the Joint Works budgets. Recommendation Staff recommends approval of the proposed Joint Works Operating and Capital Budgets and Individual Districts' Budgets for 1997-98. GGS:lc Encl. c: Department Head AGM-Administration A GM-Operations General Manager RIIYisad 0511 '4197 H:\WP.DTA\FIN\2210\CRANE\FAHR\FAHR.97\JUNE\FAHR97.40 Page 2 of2 For Bd, Sec. U .. "".Qah: • COMM. INFO. ITEM • COMM. ACTION ITEM • JT. BDS. CONSENT • JT. BDS. DISCUSSION (NON-CONSENl) • PUBLIC HEARING ____ JT. BDS. MEETING DATE ____ JT. BOS. AGENDA ITEM NO. AGEN~~ ITEM · TRANSMITTAL /O. MEETING DATE OMTS: COMM. ID. NO. DISTRICT NO. CONTACT FOR INFORMATION (Orginator) PDC: FAHR: 6-11-97 EXEC: STEER: JT.BDS: OMTS. ____ _ PDC . FAHR 'll-43 . EXEC ____ _ STEER. ___ _ AGENDA WORDING AND RECOMMENDED ACTION(S): Ag_enda Wording: 2520, Mike ~eterman, 2105 ---7 itir Division No., Name, and Extension PRESENTATION ON THE BROADBANDING STUDY: The Human Resources Director will provide a presentation on the broadbanding study that was recently completed by Barry Newton from Creative Management Solutions. Recommended Acti on(s): Recommend Boards receive and file Broadbanding Study and authorize the Director of Human Resources to reopen negotiations with the Orange County Employees Association, Local 501, and the Supervisor and Professional Team to meet and confer on a performance and skill based compensation system with the condition that staff will provide quarterly status reports and the FAHR Committee must approve the final compensation plan. CEQA REVIEW: Project is Exempt: YES NO NOT APPLICABLE DATE OF MOST RECENT BOARD ACTION ON THIS SPECIFIC Date Notice of Exemption Filed: ITEM: Negative Declaration Approved on Final EIR Approved on_ and Notice of Determination filed on_ June 20, 1996 CURRENT BUDGET/COST INFORMATION TOTAL BUDGETED AMT.: $ SOURCE: CORF JO DISTRICTS Schedule/Line Items: AMOUNT OF TRANSFER: Schedule/Line Item: TOTAL PROJECT BUDGET INFORMATION First Year in Budget: Master Plan Estimate: Year of First Costs: THIS AITNENDOR/PROJECT COST INFORMATION CURRENT YEAR BUDGET AMOUNT N/A ORIGINAL BUDGET TOTAL ORIGINAL BID, PO,CONTRACT AMOUNT CURRENT YEAR- TO-DATE EXPENDITURES N/A PREVIOUS BUDGET CHANGES CHANGE ORDERS, FUNDS PREV. APPROVED YEAR-TO-DATE REVISED BUDGET BUDGET BALANCE TOTAL (Total Budget plus Transfers) N/A N/A BUDGET CHANGE REVISED TOTAL THISAIT PROJECT BUDGET $0.00 AMOUNT AMENDED REQUESTED THIS PROJECT AIT AMOUNT $0.00 WILL PROJECT REQUIRE ADDITIONAL PERSONNEL? NO YES If YES, state number: _ Permanent _ Limited Term REQUIRES BOARD POLICY ACTION? YES NO NOT APPLICABLE If YES, explain in ADDITIONAL INFORMATION section Revised 04/10/97 Page 1 of4 H:\WP .DTA\HR\2520\PETERMAN\FAHR\BRDBND1 .FAH Originator Date CONCURRENCES: Signature Date ~WJf n, ~nag er (Or fj}rze) · r v v,.c,,h.iu.>L --1: . ~ fl, \.fyv'-- Signature Date Department Head (Or Designee) c t·N4:;;\ tu~ & /cf/ c;1 Sigr\ature Date Assist ant General Manager (Or Designee) ADDITIONAL INFORMATION (Background and/or Summary) ATTACHMENTS TO COMMITTEE AGENDA (List): 1. -, ATTACHMENTS TO JOINT BOARDS AGENDA (List) 1. On June 20, 1996 the Boards authorized a Request for Information and Qualifications for consultants to conduct a Broadbanding study. The study was conducted and completed by Barry Newton from Creative Management Services. The Districts began the study to implement changes to the compensation system that would be more in line with the salary administration goals of management. Put simply, the Districts' salary administration goals are to move away from a seniority or tenured system like our current step system to one that rewards individuals on the basis of performance, skills, abilities and knowledge. For some organizations, the purpose for broadbanding is simply to reduce the number of salary ranges and widen pay ranges to simplify the job evaluation process and reduce administrative bureaucracy. For other organizations, broad banding supports a dramatic change in the organization's culture, fosters a flatter organization, creates a broadly skilled workforce, encourages teamwork, and supports career development opportunities. The study focused on two areas. The first was to complete a job evaluation of all Districts' classifications and use those evaluations as the basis for a market survey. The second objective was to evaluate the Districts current compensation system and recommend a plan for moving the Districts to a pay system that rewarded high achievers specifically considering performance, skills, abilities and knowledge. Market survey. Attachment E to this report reflects the market survey conducted using ten similar agencies. Those agencies include Central Contra Costa Sanitary Districts, City of Los Angeles, Los Angeles Department of Public Works -Hyperion Plant, City of San Diego, County Sanitation Districts of Los Angeles, East Bay Municipal Utilities District, Eastern Municipal Water District, Irvine Ranch Water District, Orange County Transportation Authority, and Orange County Water District. The focus of the survey was to compare actual pay rates of Districts' employees to the actual pay rates of employees of the survey participants. As a whole, the Districts' average pay rates were slightly above the average pay rates of the agencies surveyed which is consistent with the Districts' compensation philosophy. Average pay rates of 13 job classifications were 10% or greater than the market survey. Nine job classifications were 10% below the market survey. Compensation System and Structure. In summary, the broadbanding proposal reduces nearly 60 salary ranges into 7 broad ranges "bands" and deletes nearly 90 job titles. Each band is comprised of five zones. Movement between zones within a band would be determined by the number of competencies (skills, knowledge, and abilities) the employee obtained. Traditionally, in a broadbanding system, there are no controls as to the maximum zone one can obtain. However, the Districts must remain cost competitive. Therefore, controls on movement into the higher zones of the band must be maintained. For example, employees would be free to determine there own movement (obtaining more skills) between zones one and two with the recommendation of the supervisor, but zones three, four, and five would have to be budgeted for each year. In other words, the department head would have to determine each year during the budget process, which complement of skill sets was needed to do the work, and a fixed amount of positions in zone three, four and five would be set. The department head would not be allowed to have an employee move into the higher zones unless he or she was within the authorized budget. Revised 04110/97 H:\WP.DTA\HR\2520\PETERMAN\FAHR\BRDBND1 .FAH Page 2 of4 .,. Summary. The proposal presented by Barry Newton looks promising. As the Districts reduce staffing over the next five years, there will be a need for emplrr ~s to be more highly cross-trained. Jn ore' '0r cross-training to be effective, a compensation system needs to be f.. ,n place that will reward employees who o.. .. n the increased training through their own initiative. This plan seems to accomplish that. The step system we now have provides regular, annual increases to employees for simply being on the job and does not recognize excellence. Other companies, primarily in the private sector, are moving to broadbanding type systems. Most notably are the high technology, health care, and manufacturing industries. As competition grows increasingly fierce through globalization and automation, companies are looking for ways to flatten their hierarchies, respond to change, and increase the skills of their workforce. The threat of competition through privatization places the Districts in similar circumstances. In support of these conclusions, many county agencies, who have heard that we are conducting this study, have been calling to find out how our implementation efforts are going. Although broadbanding is new territory in the government sector, it is gaining increasing popularity with those companies looking for a competitive advantage. We expect this plan to be negotiated with the employee associations over the next fiscal year. Attachments A -E provide more detail on the broadbanding plan. c: Department Head AGM-Administration AGM-Operations General Manager Revised 04/10/97 H:\WP.DTA\HR\2520\PETERMAN\FAHR\BRDBND1 .FAH Page 3 of4 ... Attachment A 1. How Are Jobs Assigned To Pav Bands? Existing positions have been assigned to job classifications and pay bands based upon the job functions and qualifications guidelines that have been presented by employees and supervisors. CMS Consultants have analyzed job descriptions, job evaluation factors and market data in order to recommend pay band assignments. These job functions and qualifications may change over time as employees develop new competencies. In most cases, these competencies can be recognized within the existing job profiles Oob descriptions) and pay bands. In some cases, the job functions and qualifications guidelines will change to the extent that a new job classification or pay band assignment may be needed. Such changes will be determined by the department manager in collaboration with the Human Resources Department, Job Evaluation Committee or human resources consultant based upon a job analysis. 2. How Are New Positions or Position Vacancies Filled? When a position vacancy or new position is created, the hiring supervisor will be review the existing Job Profile with the department manager to verify the appropriate job classification with the Human Resources Department. The hiring supervisor will be asked to complete an Employment Requisition or Personnel Action Change Form which identifies the minimum functions that are required of the position as well as the relevant education, training and certification that are needed for hiring purposes. The experience requirements for this job will already be on file in the Human Resources Department and can be used for internal or external recruitment purposes. In most cases, employees who are appointed to new job classifications will be placed in the first part of the pay band, known as the first pay zone. The CSDOC will follow established employment practices in filling new positions or replacing existing positions. County Sanitation Districts of L ,ge County Competency Development Guidelines ________ _ 3. How Are Competencies Defined? The competencies are clusters of major job functions, education, training, knowledge, skills, abilities and performance criteria that are associated with each job classification. The information for the competencies was derived from the position analysis questionnaires completed by employees and reviewed by sµpervisors and managers, as well as the agency's existing job descriptions. 4. What Are Some Common Examples of Competencies? Several examples of competencies that are common to the agency's job classifications are summarized as follows: I:&> Project management I:&> Supervision ® Writing and communications ® Equipment operation ® Budgetary and cost analysis ® Planning and goal setting ® Contract administration ® Data management Other examples can be developed that are unique to the requirements of particular positions and division or departmental operations. It should be noted that the Districts' current Performance Appraisal System already defines performance factors that are closely related to the competencies that have beeri identified as part of the Broadbanding Program such as Supervisory Skills, Project Management Skills, Communication Skills, and Data Management. 2 /----, County Sanitation Districts 01 .'nge County Competency Development Guidelines. ________ _ 5. Can The Competencies Be Modified For Different Uses? CMS Consultants have deliberately clustered particular job functions, education, training, knowledge, skills, abilities and performance criteria together into major competencies so that the plan is easier to administer at the division and department level. In some larger departments, such as Maintenance and Operations, the Standards Committee or approved sub-committees may want to provide more finite definitions of each competency as part of a skills assessment inventory that will be more consistent with the organization's overall planning needs, such as those training needs being identified by the DART Committee. 6. How Will The Necessary Competencies Be Defined? At present, employees have been performing particular job functions that are associated with the division or department's work needs. The needs of each division and department will evolve over time given operational requirements, staffing changes, legal standards and service needs. It is expected that the number of competencies required of employees will continue to increase in the future. It is recommended that the Competency Standards Committee work with the Executive Management Team, the Training Department and the Human Resources Department to identify the types of additional competencies that are needed for organizational development. The department head should identify preliminary competencies that are needed each year in planning meetings with lead, supervisory and managerial personnel in June of each year and that these competencies be formalized for particular positions in July and reviewed with the Compete·ncy Standards Committee, including Training Department representatives during the months of August and September. These proposed competencies should be reviewed by the Standards Committee to determine if: 0 These competencies are distinct and different from the competencies that are already identified in the job profiles. @ These competencies are related to departmental goals and individual development goals that pertain to particular positions. €) These competencies can be adequately certified given the performance criteria that have been identified for measurement purposes. O The number of positions requiring these competencies with the division and department has been specified. 3 County Sanitation Districts of C.. ..• 1ge County Competency Development Guidelines. ________ _ 7. Who Is Involved In Establishing Needed Competencies? The respective roles of each of the parties that are involved in the planning process can be defined as follows: 0 The designated Human Resources Analyst or Director of Human Resources will determine whether the competencies are new and distinct from those competencies identified in the job profiles. In order to be different, the nature of the functions, programs or services must be different. In addition, the knowledge, skills, abilities and/or performance measures must be different as well. In addition, the Human Resources Department is responsible for reviewing the completed performance evaluations whereby supervisors assess the extent to which employees have demonstrated the mastery of particular competencies. 0 The Competency Standards Committee will be responsible for determining whether these competencies are related to departmental goals or organizational cross-training and development goals and whether the competencies can be distinguished as being important, measurable, and relevant to the department and organization. The members of the Competency Standards Committee should have a broad view of organizational requirements, such as a Maintenance Manager, Training Manager, Human Resources Analyst, or equivalent positions. 0 The Executive Management Team is responsible for determining the relative level of importance of each competency to organizational development. 0 The Department Head is responsible for determining the number of persons that are needed to develop the competencies with particular divisions in cooperation with the supervisors and managers. Employees within each division may also recommend competencies that are needed within each department as part of the performance planning cycle. 0 The Training Department is responsible for approving the performance criteria that can be used for training and certification purposes. 0 Employees, supervisors and managers are expected to identify potential competencies as part of the performance planning process in May of each year prior to the completion of the individual performance evaluations. These proposed competencies are then submitted to the department head and the Executive Management Team for review and approval. 4 County Sanitation Districts 01 ,nge County Competency Development Guidelines. ____ ____:. ___ _ 8. How Are Competencies Certified? The minimum experience level of each job classification will be established by the Human Resources Department, given recommendations provided by the Compensation Consultant. This minimum experience level will then be used to establish the minimum qualifications for selection purposes, in combination with the specified level of education and training, given the minimum competencies that are specified for a given position, whether an external recruitment or internal promotion is involved. The required education, training and performance criteria for each job can be certified by the Training Department using a variety of methods such as: o On The Job Training-Such as the completion of a specific number of hours of prescribed training involving the application of particular work practices, method and techniques, as defined in the job profiles. o Cla.ssroom Training-The successful completion of particular seminars or courses, as provided by the Districts' trainers or external training organizations or consultants. o Professional Registration/Licensure-the attainment of professional registration or licensure by meeting the qualifications established by a state or federal agency, or recognized professional organization. o Vocational Certification-the successful attainment of certification within a prescribed field or discipline, as provided by a vocational or continuing education institution. o Performance Benchmark Assessments-Performance measures have been identified in the Job Profiles and can be updated by the department head, Competency Standards Committee and Training Department to assess employee effectiveness in performing a variety of different job functions. These performance measures should be designed to as specific, measurable and observable as possible and be within the employee's control. These standards can also be changed over time as more objective or dependable measures are developed. Performance measures can be proposed by employees, supervisors, managers and department heads and can be approved by the Competency Standards Committee, including Training Department Representatives. Common examples of these benchmarks include the ability to meet project milestones, budget variances, error ratios, productivity ratios and minimal customer satisfaction ratings. 5 County Ssnitstion Districts of O, ~-,ge County Competency Development Guidelines. _________ _ 9. Can The Competencies Be Weighted? The competencies that have been presented in the job profiles have not been weighted but can be based upon the determinations of the Department Head and Competency Standards Committee. Examples of weighting criteria are as follows: O Importance (such as their level of impact upon department operations or conformance with health and safety regulations). e Frequency of use (such as how often the functions are performed as a percentage of total work time or on a daily, weekly or monthly basis). Cl Difficulty level (such as which skills require a longer learning curve to acquire such as specialized education, training or certification. Upon review of the preliminary report, CS DOC may want to permit these criteria to be quantified in a formula for particular occupational groupings or for the organization as a whole. For example, the Operations and Maintenance Divisions may want the ability to quantify the value of these competencies so as to encourage employees to acquire additional skills that are needed to meet staffing needs, regardless of whether these skills are more difficult to perform or not. Conversely, the Human Resources Department may want to organize their work operations so as to assign new programs or functions to existing employees without increasing the number of employees in the department. The difficulty level of the competency, or its frequency of use, may not be as relevant than the capability of particular positions within the department to administer a variety of programs and functions without having to use contract services. It is recommended that the Executive Management Team and/or Competency Standards Committee, as assisted by managers and supervisors determine which methods will have the greatest level of value to particular divisions and departments. It is recommended that department heads, managers and supervisors confer to determine the level of significance of each of these competencies on an annual basis for divisions or departments in which weightings will be implemented. It is further recommended that all divisions that are a part of a department or business unit (such as Maintenance and Operations, Technical Services, and Engineering) be under the same weighting system, if it is utilized, to avoid internal inequities. 6 County Sanitation Districts o:Jge County Competency Development Guidelines._) ________ _ If competencies are weighted, it is recommended that employees provide input to the process by identifying the relative frequency with which each existing competency is performed. In the event of a new competency, the department head, manager and supervisor may work collaboratively to establish the estimated frequency of the use of the competency based upon departmental goals and operating standards. 10. How Are The Competencies Linked With Goal Attainment? Employees and supervisors are expected to meet collaboratively as part of the performance planning process in order to identify competency development goals and to discuss methods to improve effectiveness in performance relative to existing competencies. Thus, the performance goals section of the Performance Appraisal Form typically identifies the methods, tools and improvements that are needed to achieve higher performance ratings within existing pay zones or to move into higher pay zones within each pay band. Employees may also receive counseling from the Human Resources Department or the department manager regarding position opportunities that develop at higher pay band levels through promotional actions. 11. How Are Competencies Linked With Progression Within The Pay Band? Progression within the pay band is based upon the attainment of additional competencies that are needed by the department and are necessary for employee development. These competencies are identified for each job classification and are updated on an annual basis. 12. How Do Employees Progress Within Each Pay Zone? Employee progression with each pay zone is affected by the number of competencies attained and the overall performance rating of the employee in performing these competencies. 7 County Sanitation Districts of 0, ~, ,ge County Competency Development Guidelines,_ _______ _ 13. How Will The Performance Appraisal System Be Updated? It is expected that the Human Resources Department will need to review these study recommendations with the Executive Management Team and will meet with representatives of the Performance Evaluation Planning Committee in order to integrate the proposed changes in the Job Profile into the Performance Appraisal Compensation and Planning Process. It is expected that the final pay for performance increase models, planning procedures, and appraisal form changes and administrative guidelines will be approved as a part of this process. 8 Attachment B June 3, 1997 It. Plan Purpose The County Sanitation Districts of Orange County has updated its classification and compensation system as part of its efforts to achieve its long-term strategic development plan . The agency has been required to expand job responsibilities, promote teamwork and foster employee development in order to be more competitive in providing agency services. Creative Management Solutions (CMS), an independent management consulting firm , has been working with the Districts' employees, association representatives and management to attain these goals. The Districts' job descriptions have been updated in the past two years in order to more accurately reflect the types of job functions and qualifications guidelines that are needed within these job classifications . The purpose of this review was to determine how individual positions might be integrated into larger job classifications and broader salary ranges. Employees and supervisors were asked to identify major knowledge, skills and assignments that are needed for employee development and operational success. These competencies will be used to reward employees within their broader job classifications. CMS Consultants also used this information to compare agency jobs with equivalent jobs in other organizations and to establish new pay structures. The project was divided into five major phases. This report provides an overview of the first phase and presents the third and fourth phases of the study which relate to the compensation plan and pay structures. Creative Management Solutions (CMS) ______________________ l Broadbanding Program: Project Overview-June 3, 1997 _________________ _ j 11. Compensation Study Methodology A. Phase One: Project Planning and Communications CMS Consultants conducted initial planning meetings with the Board of Directors, Executive Team and the Human Resources Department in order to establish the purpose and scope of the study and to establish the work methodology and project timelines. The consultants collected information pertaining to the current classification plan, including class specifications, organization charts, and position assignments as well as pay range allocations and performance appraisal practices in order to develop a more effective understanding of current agency practices. The consultants drafted communications letters and informational materials pertaining to the broadbanding program and initiated numerous orientation sessions and question and answer meetings with employees and association representatives in order to discuss the purpose of the study, explain broad banding terms, describe how the study would be conducted, and indicate how the results of the study might be applied. B. Phase Three: Job Evaluation and Compensation Analysis I. Job Evaluation Plan CMS established job evaluation factors that The County Sanitation Districts of Orange County can use to determine the appropriate allocation of jobs to the new pay bands, particularly for those classifications that cannot be readily compared in the marketplace. The factor comparison method of job evaluation is compatible with the Districts' broadbanding pay plan in that standard criteria can be used to compare the types of competencies required of different jobs and to assign jobs to proper salary bands. This method is also appropriate since the agency's job requirements will change over time as the organization pursues its Workforce Flexibility goals. These factors were used in combination with the information from the position description questionnaires and the agency's existing job descriptions in order to assign jobs to appropriate pay bands. Creative Management Solutions {CMS) ___________________ _ 2 Broadbanding Program: Project Overview-June 3, 1997 __________________ _ These eight job evaluation factors have been defined and included for reference in the Compensation Plan. The factors are: • Responsibility • Knowledge • Skill • Problem Solving • Communications • Supervision Exercised • Budgetary Accountability • Physical Elements II. Base Pay Survey CMS Consultants convened with representatives of various employee associations, management and the Human Resources Department in order to establish the agency's labor market competitors and to review the manner in which base compensation survey data would be collected and presented. CMS Consultants considered a number of important factors, in combination with management, Human Resources and association representatives in selecting survey participants including the: [8:1 Similarity of services provided to customers. [8:1 Comparability of governmental units. [8:1 Similarity of job classifications and organizational structures. [8:1 Size of the workforce and available budgetary resources [8:1 Specific competitors from which new employees had been recruited to the CSDOC or existing employees had been lost given career opportunities within these agencies. Creative Management Solutions (CMS) ____________________ _ 3 Broadbanding Program: Project Overview-June 3, 1997 _________________ _ As a result of this labor market analysis, the following organizations were identified as participants in the agency's salary survey: Central Contra Costa Sanitary Districts City of Los Angeles Los Angeles Department of Public Works-Hyperion Plant City of San Diego County Sanitation Districts of Los Angeles East Bay Municipal Utilities District Eastern Municipal Water District Irvine Ranch Water District Orange County Transportation Authority Orange County Water District The Metropolitan Transportation Authority (MTA) originally agreed to be included in the survey but then declined to participate, citing staffing limitations. It is important to note that the compensation survey did not encompass all of the agency's jobs since there are many jobs that are unique in their design given the particular organizational structure, programs and services of the CS DOC. If these jobs had been included within the survey, the CS DOC would not have been able to obtain an adequate number of comparable job comparisons by which to generalize the survey results to establish appropriate pay ranges. Moreover, given the size of the study, the CSDOC needed to be able to control the number of jobs being surveyed so as to ensure the cooperation of survey participants who would otherwise have declined to participate in the study. In accordance with standard compensation practices, CMS Consultants selected benchmark job classifications for survey matching purposes. Benchmark jobs are used within a survey because they commonly exist in other organizations, do not tend to change as much over time as non-benchmark jobs, and have more similar job functions and qualifications guidelines when different survey organizations are compared. CMS Consultants attempted to obtain representative benchmark jobs for each job family and occupational grouping, when feasible, in selecting these jobs. Creative Management Solutions (CMS) ___________________ _ 4 Broadbanding Program: Project Overview-June 3, 1997 _________________ _ As part of the surveying methodology, CMS Consultants developed and distributed orientation cover letters, questionnaires, coding instructions, summary job descriptions and the Districts' full classification specifications, and survey data entry forms. Members of the Districts' executive management team also participated in contacting potential survey organizations to encourage their involvement in the study. The survey participants were asked to match each benchmark job separately and to report a job modifier for each classification, indicating whether the job was comparable to, larger, smaller, or not comparable in scope to the CSDOC survey job. CMS Consultants evaluated the survey data, invalidated problematic matches and interviewed survey participants in order to substantiate the information that was reported and to improve the validity and reliability of the study results. In reporting the base compensation data, the Consultants requested the pay range minimum, midpoint and maximum rates, as well as the actual number of employees in each job classification and the average rate of pay for employees in each job. The data has been displayed separately for each benchmark survey job title, as provided by the survey agencies. It should be noted that the City of Los Angeles elected to participate in the survey but provided only pay structure range information rather than the number of incumbents and actual employee average pay rates since their salary information system is not designed to provide data in that format. Consequently, it is important to note that the weighted average survey results do not include the City of Los Angeles since this organization has not reported their average pay rates for the jobs that are surveyed. The results of the survey have been displayed separately for each benchmark job classification. An executive summary of the survey results has also been developed by occupational grouping for reference purposes. In some cases, there were fewer than three agencies that reported comparable job classifications to the Districts' benchmark job. In such cases, the salary information has only been used for general reference purposes and internal job evaluation comparisons are given more significance in assigning pay bands since the reported market pay rates are highly influenced by only one or two of the survey participants. Creative Management Solutions (CMS) ___________________ _ 5 Broadbanding Program: Project Overview-June 3, 1997 _________________ _ C. Phase Four: Pay Structures and Pay Range Allocations CMS Consultants evaluated the job descriptions and used the internal job evaluation factors and market data to assign the Districts' jobs to appropriate pay bands. In the new plan, all of the Districts' regular jobs below the Assistant General Manager level can be assigned to 7 pay bands. Each pay band is composed of four zones, which are based upon increasing levels of employee competency. The guidelines pertaining to movement within these bands is included within the Pay Administration Guidelines section of this report. CMS Consultants have intentionally enlarged the spreads of Band 4 and Band 5 following the presentation of the preliminary report to address pay compression concerns associated with professional and supervisory jobs. The statistical mean has been used to establish the top of second zone of each pay band. The mean pay structure minimum and mean pay structure maximum rates were used as reference points in establishing the pay bands. The weighted average could not be effectively used in the survey planning process given that one of the major survey participants reported only their pay structure data and not their actual employee rates. The survey sample size was not large enough to permit the meaningful display of standard deviation data as part of the statistical analysis. The Consultants' goals were to avoid establishing pay range minimum rates that were lower than the current pay range minimum of the pay structure and to ensure that the pay range maximum rates for the new pay bands were set significantly higher than the ranges of other survey organizations whose job definitions are narrower. The new pay bands have been displayed separately in the section that follows this report. A formal Position Allocation Listing has been prepared which accompanies this report that shows the assignment of employees and job classifications to the new pay bands and which provides recommendations as to any pay adjustments that may be needed. In those cases in which employees are paid below the proposed minimum rate of the pay band, it is recommended that employees pay rates be increased to the band minimum within the next year provided that these employees are meeting the minimum performance standards for these classifications. Similarly, it is recommended that employees who have current pay rates above the pay band maximum rate retain their current base rate until the pay structures are adjusted to the point that the pay range maximum rate is greater than the employee's base rate or the employee is reclassified or promoted to a job that is above the current pay band assignment. These recommendations have been presented in greater detail in the Pay Administration Guidelines section of this study report. Creative Management Solutions (CMS), ___________________ _ 6 Broadbanding Program: Project Overview-June 3, 1997 __________________ _ I 111. Compensation SuNey Findings by Bargaining Group In the discussion section that follows, the average (mean) rates reported have been rounded to tt)e nearest 0.5% to make it easier to discuss the broader compensation trends and results by job grouping. The survey summary has been separated by bargaining group for ease of reference although the new pay structures and occupational groupings are designed to integrate positions from different bargaining groups into one coherent pay system. More detailed comparisons can be made by studying the market results for each survey benchmark job. Creative Management Solutions (CMS) ____________________ _ 7 Broadbanding Program: Project Overview-June 3, 1997 __________________ _ Administrative and Clerical These benchmark jobs were well paid relative to the prevailing market average. As a group, employees in this grouping were paid nearly 18% above the average rates of employees in these job classifications in the survey organizations although the acco1:1nting support jobs were paid at rates that were more competitive than the office support jobs since the Senior Clerk and Secretary jobs were paid at rates that were 10% above the market average. Creative Management Solutions (CMS) ____________________ _ 8 Broadbanding Program: Project Overview-June 3, 1997 __________________ _ Confidential The Confidential Unit survey jobs of the Executive Assistant I and Executive Assistant II were paid at rates that were about 15% above the average market rates for employees in these job classifications although the CSDOC was more competitive at the Executive Assistant II classification level than the Executive Assistant I level. The Senior Human Resources Analyst was paid about 3.5% behind the prevailing market average, which was more consistent with the market positioning of the Districts' professional job classifications. Creative Management Solutions (CMS) ____________________ _ 9 Broadbanding Program: Project Overview-June 3, 1997 ___________________ _ Engineering The Engineering Aide II and Construction Inspector were paid at rates that were consistent with the prevailing market average and were paid about 1.35% higher than the pay rates of employees in similar job classifications. Creative Management Solutions (CMS), _____________________ _ 10 Broadbanding Program: Project Overview-June 3, 1997 __________________ _ Executive Management These classifications tended to be paid at rates that were relatively competitive with the market average although there were variations that may be attributed to differences in the experience and performance levels of incumbents as well as the present grading of jobs within the Districts' pay structures. As a group, these jobs were paid more than 2% above the market average. The Director of Technical Services was positioned most competitively at about 13% above the average market rate and the Director of Human Resources was positioned least competitively at about 12.5% below the market average. The normal range of variation between the highest and lowest paid performers in these jobs is about 25% so this survey finding is not statistically significant. Creative Management Solutions (CMS) ____________________ _ 11 Broadbanding Program: Project Overview-June 3, 1997 __________________ _ Management These positions tended to be paid at rates that were relatively competitive with the market although there was greater variability in the average rates reported as compared with other job groupings. The overall market positioning of these jobs was also relatively lower, being 3.5% above the average market rates for a similar grouping of benchmark classifications. Again, this summation is based upon those benchmark classifications with two or more market agency survey comparisons. Creative Management Solutions (CMS) ____________________ _ 12 ., Broadbanding Program: Project Overview-June 3, 1997 __________________ _ Operations and Maintenance The results that are reported in this section are based upon comparisons involving 24 benchmark survey jobs. As a whole, these jobs were paid about 1 % above the market average rate for survey jobs within the study. The range of variation in pay rates for this grouping was consistent with most of the other job groupings for"the CS DOC. The competitive positioning of the lower skilled job classifications tended to be higher within this grouping than the more skilled jobs however. For example, when the pay rates of the Custodian, Groundskeeper and Storekeeper are compared, these positions are paid about 2% above the market average. Conversely, when the Electrical Technician II, Instrumentation Technician II and lead job classifications are averaged, these 9 jobs are paid about 2% below the market average. Creative Management Solutions (CMS) ____________________ _ 13 Broadbanding Program: Project Overview-June 3, 1997 __________________ _ Professional On the basis of 12 reported jobs, these classifications were paid about 0.5% above the market average as a whole. There were some notable inequities given current compensation practices. The Scientist was paid about 14% above the average market rate whereas the Principal Environmental Specialist was paid about 15.5% below the market average rate. Creative Management Solutions (CMS)_____________________ 14 Broadbanding Program: Project Overview-June 3, 1997 __________________ _ Supervisors On the basis of 12 reported jobs, these classifications were paid nearly 6% above the market average as a whole. However, there were significant variations. The Training Supervisor classification was paid about 24% above the market average whereas the Environmental Management Supervisor and Supervising Construction Inspector classifications were paid about 9% below the market average. These findings are consistent with those of the Technical Services jobs such as the Environmental Specialist and Source Control job series which were lagging behind the prevailing average market rates. The new pay band assignments will attempt to rectify some of these inequities, independent of the level of experience and performance ratings of employees within these job classifications. The new pay band design will also attempt to create minimum pay grade separations between the job groupings above and below _the supervisor level to avoid pay compaction. Creative Management Solutions (CMS) ____________________ _ 15 Broadbanding Program: Project Overview-June 3, 1997 __________________ _ Technical Services The Technical Services classifications tended to be paid at rates that were less competitive relative to the market average and the pay rates of other job groupings. As a whole, employees in these jobs were paid about 7.5% below the market average although this lag was most significant for the Environmental Specialist II and Source Control Technician job classifications. The Source Control Inspector was paid about 9% above the average market rate and the Senior Laboratory Analyst was paid only 3.5% below the average market rate. The new pay band assignments will attempt to rectify some of these inequities, independent of the level of experience and performance ratings of employees within these job classifications. Creative Management Solutions (CMS) ____________________ _ 16 Attachment C May 12, 1997 11. Plan Purpose The County Sanitation Districts of Orange County has updated its classification and compensation system as part of its efforts to achieve its long-term strategic development plan. The agency has been required to expand job responsibilities, promote teamwork and foster employee development in order to be more competitive in providing agency services. Creative Management Solutions (CMS), an independent management consulting firm, has been working with the Districts' employees, association representatives and management to attain these goals. The Districts' job descriptions have been updated in the past two years in order to more accurately reflect the types of job functions and qualifications guidelines that are needed within these job classifications. The purpose of the study was to determine how individual positions might be integrated into larger job classifications and broader salary ranges. Employees and supervisors were asked to identify major knowledge, skills and assignments that are needed for employee development and operational success. These competencies will be used to reward employees within their broader job classifications. CMS Consultants also used this information to compare agency jobs with equivalent jobs in other organizations and to establish new pay structures. The project was divided into five major phases. The first phase entailed project planning and communications as related to the entire program. The second phase encompassed the development of the classification plan and the methodology is summarized on the following page. Creative Management•Solutions (CMS) _____________________ l Broadbanding Program: Project Overview-5/12/97 __________________ _ I 11. Classification Study Methodology A. Phase One: Project Planning and Communications CMS Consultants conducted initial planning meetings with the Board of Directors, Executive Team and the Human Resources Department in order to establish the purpose and scope of the study and to establish the work methodology and project timelines. The consultants collected information pertaining to the current classification plan, including class specifications, organization charts, and position assignments as well as pay range allocations and performance appraisal practices in order to develop a more effective understanding of current agency practices. The consultants drafted communications letters and informational materials pertaining to the broadbanding program and initiated numerous orientation sessions and question and answer meetings with employees and association representatives in order to discuss the purpose of the study, explain broad banding terms, describe how the study would be conducted, and indicate how the results of the study might be applied. 8. Phase Two: Job Analysis and Classification Plan CMS Consultants conducted separate meetings with executives and managers to .review their current departmental and divisional organizational structure, job definitions, employee development needs, and classification issues. CMS Consultants developed a position analysis questionnaire that was distributed to the workforce. All employees were given the opportunity to present information pertaining to their job competencies. The County Sanitation Districts of Orange County had recently developed job descriptions for all of their positions and employees were able to refer the specifications for ideas. Employees were asked to asked to identify five major competencies that pertained to their particular position as well as additional major duties that had not been previously identified that were relevant to the position. Employees were asked to describe job functions that were important or performed frequently, and to explain the types of knowledge, skills, abilities, training, education, licenses, certification, registration or special requirements associated with these functions. Employees were also asked to identify potential performance assessment criteria that could be used to measure how well an employee had mastered the competencies that they described. Creative Management Solutions (CMS) ____________________ _ 2 Broadbanding Program: Project Overview-5/12197 __________________ _ The completed questionnaires were reviewed by supervisors and managers for additional comments prior to the documents being submitted to CMS Consultants. CMS Consultants analyzed the completed questionnaires and contacted department managers and supervisors with particular inquiries that were not adequately addressed with the position questionnaires or job descriptions. In cases in which employees did not provide questionnaires as instructed, CMS Consultant utilized the class specifications, questionnaires completed by peers, and recommendations of supervisors and managers to determine the appropriate job classification for each position. The information from the job analysis process was used to: ODetermine how many separate job classifications were needed to represent the types of functions and qualifications within the classification plan. ODetermine how the agency's current positions might be integrated into broader job classifications. OEstablish appropriate job titles for the new job classifications. Oldentify major competencies and potential performance criteria for each job classification. OAssign positions to appropriate job classifications. OEstablish career ladders for promotional purposes. CMS Consultants have prepared the following summary report that presents the study background, findings and recommendations by position for review by the Executive Team, managers, supervisors, and Association representatives. Appropriate changes have been reviewed for inclusion in the final classification report. Creative Management Solutions (CMS) _____________________ _ 3 Broadbanding Program: Project Overview-5/12197 __________________ _ I 111. Classification Study Findings and Recommendations The current classification plan for the County Sanitation Districts of Orange County is characterized by a large number of specialized job titles having overlapping job functions and qualifications guidelines. Similarly, many employees perform assignments that are not within the scope of their current classification specifications. The long-term strategic goals of the agency are to improve the efficiency of organizational operations, raise productivity, and increase the competency level of the workforce in order to successfully compete with other potential service providers. To accomplish these goals, the classification plan must be changed to enlarge job responsibilities, promote additional education, training and certification, and enhance the effectiveness of the performance measurement system in order to upgrade the qualifications of the workforce. To meet these organizational needs, CMS Consultants have proposed enlarged job classifications, including the horizontal expansion of job classifications to perform a greater range of job functions at different knowledge and skill levels, as well as the vertical integration of job levels to reduce unnecessary layers of lead, supervisory and management classifications. CMS Consultants have also attempted to provide more consistency in the job titling to make the plan easier to administer. The section that follows provides major highlights of the changes that have been recommended in the classification system by major job grouping: Accounting/Finance The Purchasing Manager classification was enlarged to Contracts and Purchasing Manager to incorporate the larger contracts administration functions that have been incorporated into this job since the last job description was prepared. It is recommended that the department recognize the specialized bid preparation, contract administration and administrative functions duties that are performed in support of the Contracts and Purchasing Manager through the designation of a Contracts Assistant classification. Creative Management Solutions (CMS), ____________________ _ 4 Broadbanding Program: Project Overview-5/12197 __________________ _ The Account Clerk and Senior Account Clerk job title were integrated into a larger classification of Accounting Technician to reflect the full range of specialized accounting functions that may be assigned to these positions and the technical knowledge of accounting methods and procedures that can be required. The Storekeeper and Senior Storekeeper jobs have been combined into a single broader job title of Storekeeper that accurately reflects the nature of the work responsibilities of these positions. There is an insufficient separation of job functions or qualifications requirements that justify the retention of these jobs at two different classification levels. Administrative Analysis It is recommended that the Project Specialist job title be modified to Project Planning Analyst to accurately represent the predominant organization, planning and analytical abilities that are required of incumbents in these positions. It is also recommended that the "project planning" titling remain broad since the types of the projects that are administered by these positions will continue to change over time in accordance with the agency's needs. The use of the "Analyst" title rather than the originally proposed "Supervisor" title is more consistent with other professional job titles being used by the agency and reflects that this job tends to provide technical guidance to others rather than functional supervision. Similarly, the Regulatory Specialist job title should be enlarged to Regulatory Planning Analyst in order to represent the range of regulatory planning, organizational and analytical abilities required of these positions given the knowledge of compliance regulations, operational requirements and the agency's strategic goals. Administrative Support The current administrative and clerical job series is composed of a large number of specialty titles that cannot be adequately supported by differences in the required job functions and qualifications guidelines. In fact, the current plan has four clerical classification levels of Office Aide, Clerk, Senior Clerk and Secretary while the nature of the work assignments performed by these positions is highly similar. It is recommended that these four job title levels be consolidated into a broader job classification of Office Assistant as part of a wider pay band. Similarly, the Executive Assistant I and Executive Assistant II positions perform work that is highly similar in scope and which requires similar qualifications. These positions should be combined into the larger job classification of Executive Assistant. Creative Management Solutions (CMS) ____________________ _ 5 Broadbanding Program: Project Overview-5/12197 __________________ _ The Secretary to the Board of Directors job title should be modified to Assistant to the Board of Directors to represent the broader range of administrative assignments that are performed by this position, and to reflect the primary purpose of this position which is to assist the Board of Directors by performing a wide range of support functions. Communications and Graphics The present Graphics Services Coordinator and Graphic Services Technician positions have converging job functions and qualifications and should be combined into a larger job classification of Graphic Services Technician. This approach will promote workforce flexibility and cross-training to better meet the work needs of department customers while promoting employee development. Engineering It is recommended that the agency combine a number of overlapping professional job classifications such as Principal Engineer, Engineer and Associate Engineer. These jobs require advanced education and are expected to provide a greater level of technical direction to engineering support staff with respect to engineering design practices and to administer engineering projects. Similarly, the Principal Engineering Technician and Engineering Technician jobs can be incorporated within the broader classification of Engineering Technician, with lead direction being recognized within the scope of the larger pay band. The present Engineering Aide I, Engineering Aide II and Engineering Aide Ill classifications have been consolidated into a single larger job of Engineering Aide given overlapping work responsibilities. The Engineering Associate job title has been changed to Engineering Technician to more accurately reflect the technical nature of the work functions that are performed and to be consistent with the job titling typically used in the marketplace for similar positions and the scope of work being performed within the agency. Creative Management Solutions (CMS) ____________________ _ 6 Broadbanding Program: Project Overview-5/12/97 __________________ _ General Services A change has been proposed in the Helper job title to Custodian in order to more accurately reflect the nature of the work assignments and skill level that are associated with these positions. This titling is also more consistent with the predominant job titling that is used in the marketplace. It is recommended that the Collections Facilities Worker I, Collections Facilities Worker II and Lead Collections Facilities Worker classifications be broadened and incorporated into a new Collections Facilities Worker classification given the similarities of the functions and qualifications of employees assigned to these positions. Human Resources A new classification of Human Resources Manager is being established within the Human Resources Department subject to the review and approval of the proposed job functions and qualifications guidelines. At present, a number of employees are currently classified as Human Resources Assistant but are performing the equivalent work of Human Resources Analysts as recognized within the human resources field. It is recommended that these positions be upgraded to Human Resources Analyst as shown by employee name in our Proposed Position Allocation Listing by Job Title. It is recommended that the Human Resources Technician classification be utilized to encompass job assignments which require lesser responsibility and specialized knowledge. The remaining Human Resources Assistant positions that have not been reclassified to Human Resources Analyst on the basis of their job assignments and qualifications have been assigned to the Human Resources Technician classification. It is proposed that the Safety and Emergency Response Representative job title be modified to Safety and Emergency Response Analyst to more accurately reflect the predominant analytical assignments that are performed by these positions and to be consistent with the proposed changes in the job titles of positions in other departments with a high analytical job content. C~eative Management Solutions (CMS) ____________________ _ 7 Broadbanding Program: Project Overview-5/12/97 __________________ _ Information Technology The present job titling structure within the Information Technology Department is not consistent with the classification levels of other departments. The Information Technology Manager has the equivalent authority, scope and importance of functions performed as other department heads. This position should be reclassified to Director of Information Technology and be assigned to the Executive Management Team. The present classification structure within the Information Services Department is composed of a number of traditional specialty titles that do not adequately reflect the broader types of user support services and hardware and software interfaces that are expected of positions within the department. The current job titles do not recognize the increased use of networks, databases and interactive software by the information software positions or the broad variety of computer hardware, voice and telecommunications systems that are maintained by the hardware positions. It is recommended that the job titling be enlarged to Information Technology Analyst for the Programmer and Programmer Analyst positions and to Information Technology Technician for the Computer Hardware Specialist positions. _ Maintenance It is recommended that the Electrical Maintenance Worker I, Electrical Technician I, Electrical Technician II, Instrumentation Technician I and Instrumentation Technician II jobs be consolidated into a new and broader classification of 1/E Technician. These changes will more accurately reflect the similar nature of the job functions that are performed by these positions in completing daily work orders and projects. This change would also be consistent with the cross-training needs of the agency. Plant Operations A number of job consolidations have been proposed in Plant Operations and these changes are consistent with the productivity and operational goals of the department, as the Workforce Flexibility and cross-training objectives of the agency. Creative Management Solutions (CMS) ____________________ _ 8 Broadbanding Program: Project Overview-5/12/97 __________________ _ The Control Center Clerk title should be modified to Control Center Technician to more accurately represent the equipment monitoring and technical functions that are performed by these positions. The title of Operations Supervisor should be modified to Plant Operations Supervisor in order to avoid confusion with Operations Supervisors that typically perform general administrative assignments and do not require specialized sanitation and wastewater treatment control requirements in positions with other non-sanitary agencies. Similarly, the additional administrative assignments of the Senior Operations Supervisor should be consolidated into a broader classification definition and larger pay band for the Plant Operations Supervisor. Any use of shift supervisor title designations need to be changed to properly conform with State of California certification requirements. The Operations and Maintenance Department may identify additional opportunities for job consolidation in the work being performed by the DART Committee that are feasible and can be implemented at a later date. Technical Services It is recommended that the multiple levels of Environmental Specialist I and Environmental Specialist II be combined into Environmental Systems Analyst given the similarity of work responsibilities and qualifications guidelines of these positions. The Laboratory Analyst job titling should be changed to Laboratory Technician to more accurately reflect the types of testing, sampling and technical support functions that are performed on behalf of these positions in support of the environmental management and scientific job classifications. It is recommended that a separate job classification of Permit Assistant be established within the Source Control Section to recognize the unique nature of permitting, database tracking and violation reporting functions that are performed by positions within this function. Creative Management Solutions (CMS) ____________________ _ 9 ( ( Broadbanding Program: Project Overview-5/12/97 __________________ _ Other General Classifications The job responsibilities of the Part-Time Assistant job classification are highly similar to those of technical support positions within the CSDOC. It is recommended that the job title of Technical Support Assistant replace the current classification of Part-Time Ass1stant as being more descriptive in nature. The agency is likely to continue to use different Interns for different position assignments by occupational grouping such as Engineering, Laboratory and Administration. It should be noted that these Intern positions may also be required to meet special employment and education requirements. These Interns are not shown assigned to the new pay bands. Creative Management Solutions (CMS) _____________________ 1 O C~..,0C PAY BAND AND JOB TITLE COMPARISONS BANDS Construction lnspac Supvr Engineering Supervisor BAND4 Environ Compliance Supvr Info Technology Supvsr Accountant Laboratory Supvsr Administrative Analyst Maintenance Supvsr BAND3 Asst to lhe Board of Dlra Plant Opms Supvsr Engineer Project Planning Supvsr Buyer Environ Systems Analyst Source Control Supvsr Construction Inspector Financial Analyst Training Supervlaor BAN02 Engineering Technician Human Resourcaa Analyst Environ Systems Tech Information Tech Analyat Accounting Technician Graphic Services Tech Regulatory Plang Analyst Builder UE Technician Maintenance Foreperson BAND 1 Oollectlon Facllltlaa Worl<ar Info Technology Tech Maintenance Planner Contracts Assistant Laboratory Technician Saf & Emerg Raap Analyst AHl&Lant Storekeeper Control Center Technician Plant Operator Scientist Custodian Engineering Alda Pump Power Operator Training Analyst Groundskeeper Equipment Operator Source Control Inspector Office Assistant Executive Assistant Source Control Technician Technical. Support Aaalstant Human Resources Tech Information Services Tech Machinist Mechanic Painter Permit Asalstant Storekeeper Welder 5/11/97 Pago 1 BAND& Accounting Managor Chief Plant Operator Construction Manager Contracts & Purchsng Mgr Controller Engineering Manager Environ Compliance Mgr Financial Manager Human Rasourcaa Manager Laboratory Manager Maintenance Manager Plant Automation Manager Safety & Emerg Raap Mgr Source Control Manager Training Manager - BAND7 Dir of Communlcatlone Dir of Engineering Dir of Finance Dir of Gan Svces Admln Director of Human Resources Olraclor of Info Technology Director of Operations Director of Tech Svcas r ' ,/ l:i A '::, '3 I(!) :::, 0 1,._.,, 1.._.,oc Pay Band and Market Analysls 5/6/97 PAY BAND/BARGAINING GROUP IPAY SURVEY JOB TITLE/ PROPOSED JOB TITLE MARKET CSDOC csooc CSDOC CSDOC Rongo BAND CURRENT TITLE Mean Avg VI Moan Range Range Spr-.•d Zone1 Zone1 Zone 2 Zonel Zone4 Maximum Number Mun Minimum Maximum Mallmum Mulmum Maximum Operations and Maintenance 1 Custodian Custodian $2,303 $2,114 .a.2% $1,853 $2,252 $2,239 2000 22% $1,993 $2,292 $2,636 $3,031 $3,486 Administrative & Clerical 1 Senior Clerk Office Assistant $2,438 $2,643 +16.6% $2,157 $2,738 $2,871 1002 27% $1,993 $2,292 $2,636 $3,031 $3,486 Operations and Maintenance 1 Groundskaeper Groundskeeper $2,658 $2,839 +6.8% $2,247 $2,780 $2,922 2003 24% $1,993 $2,292 $2,636 $3,031 $3,486 Operations and Maintenance 1 Assistant Storekeeper Storekeeper S2,761 S2,975 +7.7% S2,368 S2,866 $3,097 1003 21% S1 ,993 $2,292 $2,636 $3,031 $3,486 Administrative & Clerical 1 Secrelaly Office Assistant $3,018 $3,117 +3.3o/, $2,545 S3,224 $3,271 1007 27% $1,993 $2,292 $2,636 $3,031 $3,486 $2,636 $2,778 $2,234 $2,772 $2,880 Operations and Maintenance 2 Senior Collection Facilities Worker Collections Facilities Worker $3,046 NA +6,1% $2,554 $3,223 $3,375 2007 26% $2,628 $3,023 $3,476 S3,997 $4,597 Operations and Maintenance 2 Senior Storekeeper Storekeeper $3,372 $3,647 +14.1% S2,697 S3,393 S3,758 1013 26% $2,628 $3,023 $3,476 $3,997 S•,597 Confidential 2 Executive Assistant II Executive Assistant $3,173 $3,957 +24.7% $2,432 $3,455 $3,342 1027 42% $2,628 $3,023 $3,476 $3,997 $4,59~ Operations and Maintenance 2 Builder Builder $3,426 $3,606 +5.3% $2,911 $3,464 $3,714 2009 19% $2,628 $3,023 $3,476 $3,997 $4,5 Engineering 2 Engineering Aide II Engineering Aide $3,349 $3,519 +5.1% $2,642 $3,596 $3,608 1009 27% $2,628 $3,023 $3,476 $3,997 $4,5, Operations and Maintenance 2 Painter Painter $3,472 $3,277 --56% $3,088 $3,604 $3,375 2007 17% $2,628 $3,023 $3,476 $3,997 $4,597 Confidential 2 Executive Assistent I Executive Assistant $3,348 $3,533 +5,5% $2,788 $3,607 $3,808 1012 29% S2,628 $3,023 $3,476 $3,997 $4,597 Operations and Mainlenence 2 Welder Welder $3,630 $3,733 +2.8% $3,232 $3,634 $3,645 2011 12% $2,628 $3,023 $3,476 $3,997 $4,597 Operations and Maintenance 2 Senior Mechanie-Automotiva Mechanic $3,594 $3,702 +3,0% $3,000 $3,661 $3,375 2011 22% $2,628 $3,023 $3,476 $3,997 $4,597 Operations and Maintenance 2 Senior Maintenance Worker•Plant Mechanic $3,663 $3,183 -13.1% $3,470 $3,739 $3,375 2007 8% $2,628 $3,023 $3,476 $3,997 $4,597 Operations and Maintenance 2 Equipment Operator Equipment Operator $3,664 $3,707 +0.6% $3,259 $3,800 $3,818 2010 17% $2,628 $3,023 $3,476 $3,997 $4,597 Operations and Malnlenence 2 Machinist Machinist $3,650 $3,970 +8.8% $3,273 S3,833 $4,089 2012 17% $2,628 $3,023 $3,476 $3,997 $4,597 Operations and Maintenance 2 Senior Mechanie-Field Senior Mechanic $3,775 $3,702 -1.9% $3,359 $4,012 $3,645 2011 19% $2,628 $3,023 $3,476 S3,997 $4,597 $3,476 $3,364 $2,993 $3,617 $3,641 Operations end Maintenance 3 Plant Operator Plant Operator $3,662 S3,569 -25% $3,283 $3,835 $3,690 2008 17% $3,138 $3,609 $4,150 $4,TT3 $5,486 Operations and Maintenance 3 Pump Power Operator Pump Power Operator $3,646 $4,413 +14.7% $3,525 $3,902 $4,231 2013 11% $3,138 $3,609 $4,150 $4,773 $5,486 Technical Services 3 Source Control Technician Source Control Technician $3,903 $3,132 -19.8% $3,262 $4,132 $3,164 1005 27% $3,138 $3,609 $4,150 $4,TT3 $5,486 Technical Services 3 Source Control Inspector II Source Control Inspector $3,899 $4,259 +9.2% $3,354 $4,221 $4,252 1018 26% $3,138 $3,609 $4,150 $4,773 $5,486 Administrative & Clerical 3 Graphics Services Assistant Graphics Services Technician $3,617 $3,620 +0.1% $2,838 $4,226 $3,707 1011 49% $3,138 $3,609 $4,150 $4,773 $5,486 Administrative & Clerical 3 tnronnation Services Technician Ill lnrormetion Services Technician $3,741 --$3,347 $4,239 $4,370 1011 27% S3,138 $3,609 $4,150 $4,773 $5,486 Technical Services 3 Senior Laboratory Analyst Laboratory Technician $4,386 $4,233 -3.5% $3,423 $4,320 $4,252 1018 26% $3,138 $3,609 $4,150 $4,773 $5,486 Engineering 3 Construction Inspector Construction Inspector $4,493 $4,451 -2.4% $3,571 $4,500 $4,460 1020 26% $3,138 $3,609 $4,150 $4,773 $5,486 Administrative & Clerical 3 Graphics Coordinator Graphics Services Technician $4,662 $3,970 -14.9% $3,670 $4,717 $3,970 1015 29% $3,138 $3,609 S4,150 $4,773 $5,486 Operations and Maintenance 3 Electrical Technician II 1/E T echniclan $4,050 $4,100 +1,2% $3,513 $4,190 $4,379 2014 19% $3,138 $3,609 $4,150 $4,773 $5,486 Operations end Maintenance 3 Instrumentation Technician II 1/E Technician $4,238 $4,126 -2.6% $3,693 $4,323 $4,379 2014 17% $3,138 $3,609 $4,150 $4,773 $5,486 Operations and Mainlenance 3 Lead Ele<lrical Technician 1/E Technician $4,517 $4,491 -0.6% $3,985 $4,521 $4,625 2015 13% $3,138 $3,609 $4,150 $4,773 $5,488 Operations end Maintenance 3 Lead lnstrumentaUon Tecilnlcian 1/E Technician $4,942 $4,402 -10.9% $4,364 $5,008 $4,625 2015 15% S3,138 $3,609 $4,150 $4,773 $5,48P $4,150 $3.751 $3,525 $4,318 $4,163 Professional 4 Senior Accountant Accountant $3,856 --$3,280 $4,196 S5,034 E5 28% $3,586 $4,123 $4,742 $5,453 $6,271 Professional 4 Human Resources Analyst Human Resources Analysl $4,050 $4,412 +89% $3,401 $4,223 $4,350 E2 24% $3,586 $4,123 $4,742 $5,453 $6,271 Professional 4 Programmer Information Technology Analyst $4,321 $4,177 ·3,3% $3,428 $4,360 $4,616 NA 27% $3,586 $4,123 $4,742 $5,453 $6,271 Professional 4 Scientist Scientist $4,312 $4,931 +14.3% $3,540 $4,548 $6,127 E9 26% $3,586 $4,123 $4,742 $5,453 $6,271 Professional 4 Selety and Emerg Response Rep Safely and Emery Rasp Analyst $4,243 $4,396 +3.6% $3,583 $4,592 $4,601 EB 28% $3,586 $4,123 $4,742 $5,453 $6,271 Professional 4 Programmer Analyst Programmer Analyst $4,611 $4,513 -2.1% $3,779 $4,910 $5,554 E7 30% $3,586 $4,123 $4,742 $5,453 $6,271 Confidential 4 Senior Human Resources Analyst HR Analyst $4,627 $4,486 -3.5% $3,837 $4,975 $5,283 E6 30% $3,586 $4,123 $4,742 $5,453 $6,271 Professional 4 Senior Financial Analyst Financial Analyst $4,595 $4,392 .-1.4% S3,915 $5,144 $5,034 E5 31% $3,586 $4,123 $4,742 $5,453 $6,271 Professional 4 Associate Engineer Ill Engineer $5,033 $4,734 -5.9% $4,209 $5,164 $5,824 EB 23% $3,586 $4,123 $4,742 $5,453 $6,271 Technical Services 4 Environmental Specialist II Environmental Systems Analyst $4,644 $4,063 -157% $4,043 $5,290 $4,252 1016 31% $3,586 $4,123 $4,742 $5,453 $6,271 Management 4 Seaetary to the Board of Oiractors Asst to the Board of Directors $4,892 $4,777 -19.1% $3,877 $5,251 S6,424 EID 35% $3,586 $4,123 $4,742 $5,453 $6,271 Professional 4 Principal Administrative Analyst Administrative Analyst $5,085 $5,326 +4.7% $4,298 $5,720 $6,127 E9 33% S3,586 S4,123 $4,742 $5,453 $6,271 I~ Professional 4 Engineer Engineer $5,723 $5,421 -5.3% $4,643 $5,993 $6,747 E11 29% $3,586 $4,123 $4,742 $5,453 $6,271 4 Principal Environmental Specialist Environmental Systems Analyst $6,201 $5,236 -15.6% $4,881 $6,201 $5,824 EB 27% $3,586 S4,123 $4,742 $5,453 $6,271 $4,742 $4,347 $3,908 $5,042 $5,428 Page 1 I m OMTS: PDC: FAHR: 6111197 EXEC: STEER: JT.BDS: 6/25197 All AGENDA WORDING AND RECOMMENDED ACTION(S): Agenda Wording: AGEN ,.--\ ITEM TRANSMITTAL JI . CONTACT FOR INFORMATION (Originator) 2150. Corina Chaudhry, 2003 Division No., Name, and Extension Adoption of "IDEA" Program as a replacement for the PRIDE Program in order to reward employee suggestions for cost savings. Recommended Action(s): 1. Approve an increase from the current $150 maximum award amount to $200 maximum for approved IDEAs for improvement. 2. Approve an increase from the current $1500 maximum award amount to $3,000 award maximum for approved IDEAs that offer significant cost savings. Cost saving awards to be calculated as the equivalent of 10% of the initial first year's projected savings upon implementation of the suggestion. CEQA REVIEW: Project Is Exempt: NO NOT APPLICABLE Date Notice of Exemption Filed: Negative Declaration Approved on Final EIR Approved on_ and Notice of Determination filed on_ CURRENT BUDGET/COST INFORMATION TOTAL BUDGETED AMT.: $ SOURCE: JO Schedule/Line Items: AMOUNT OF TRANSFER: Schedule/Line Item: TOTAL PROJECT BUDGET INFORMATION First Year in Budget: Master Plan Estimate: Year of First Costs: THIS AITNENDOR/PROJECT COST INFORMATION CURRENT YEAR BUDGET AMOUNT $25,000 ORIGINAL BUDGET TOTAL ORIGINAL BID, PO, CONTRACT AMOUNT WILL PROJECT REQUIRE ADDITIONAL PERSONNEL? NO YES If YES, state number: _ Permanent _ Limited Term Revised June 4, 1997 H:\WP.OTA\FIN\2210\CRANE\FAHR\FAHR.97\JUNE\FAHR97.44 DATE OF MOST RECENT BOARD ACTION ON THIS SPECIFIC ITEM: NIA CURRENT YEAR- TO-DATE EXPENDITURES NIA PREVIOUS BUDGET CHANGES CHANGE ORDERS, FUNDS PREV. APPROVED YEAR-TO-DATE BUDGET BALANCE NIA BUDGET CHANGE THISAIT AMOUNT REQUESTED THIS AIT REVISED BUDGET TOTAL (Total Budget plus Transfers) NIA REVISED TOTAL PROJECT BUDGET $0.00 AMENDED PROJECT AMOUNT $0.00 REQUIRES BOARD POLICY ACTION? YES NO NOT APPLICABLE If YES, explain in ADDITIONAL INFORMATION section Page 1 of3 WILL PROJECT REQUIRE ADDITIONAL PEF '~NEL? NO YES REQUIRES BOARD pc-·-~y ACTION? YES NO NOT APPLICABLE If YES, state number: _ Permanent -.ed Term If YES, explain in ADDI lAL INFORMATION section n~M~l @ ij.,~ '-e I 4./'i. ri ATTACHMENTS TO COMMITTEE AGENDA (List): 1. IDEA form Originator <? Date CONCURRENCES: Signature Date Division Manager (Or Designee) ATTACHMENTS TO JOINT BOARDS AGENDA (List) 1. IDEA form Signature Date Department Head (Or Designee) ~~ w (./4.,,µN.. u/ r/<iJ Signature I Date '-- Assistant General Manager (Or Designee) ADDITIONAL INFORMATION (Background and/or Summary) The Incentives (for) Districts Employees Achievements (IDEA) Program is an employee suggestion program which replaces the old PRIDE program. The IDEA Program has been structured to recognize that many of the most effective ideas for enhancing or improving Districts' procedures on safety, working conditions, or work methods (practices) come from employees. The program encourages_ all employees up to, and including, first- line supervisory level to extend their creative thoughts beyond the boundaries of their own job and submit their ideas to the IDEA Screening Committee for consideration. For an IDEA to be considered, it must identify an opportunity for improvement as well as offer an original solution. Suggestions are encouraged that save time, labor, material, money, supplies or other resources, and that improve service, methods, procedures for safety and for work conditions. It must not have been under active consideration during the previous twelve-month period, nor be in conflict with existing Districts' policies and Board approved procedures. Proposals that affect Districts' administrative policies or decisions will not be considered for an award. IDEAs submitted for approval will be evaluated by the Screening Committee. The Screening Committee is comprised of at least one representative from each department. The Screening Committee will evaluate projects, approve or disapprove IDEAs submitted and interact with the Clearing House Committee for suggestions needing further review. (The Clearinghouse Committee is responsible for the technical evaluation, tracking and review of capital improvement small projects. This group is comprised of staff from Engineering, O&M, GSA and Technical Services.) The Screening Committee will establish award amounts for successful IDEAs. Employees will receive notification from the Screening Committee if their IDEA is approved, disapproved or considered ineligible. If a suggestion is sent to the Clearinghouse Committee for further review, the Clearinghouse Committee will provide additional technical evaluation and review/perform economic cost benefit analysis. Additionally, it will ascertain that the proposed suggestion does not conflict with or duplicate any elements of current or upcoming engineering projects. Revised June 4, 1997 H:\WP.DTA\ADMIN\2150\CHAUDHRY\IDEAPROG\AIT-IDEA Page 2 of 3 IDEAs will be evaluated on the foU~ng criteria: -Utility -Economic viability; reductions in materials, supplies, equipment or work hours. -Effect on plant reliability. -Effect on individual departments. -Effect on process. -Impact on budgets and the cost to implement. -Intangible benefits; improved safety, better method, higher employee morale, improved service, improved public relations. -IDEA is beyond the scope of suggester's normal duties and responsibilities. Successful IDEAs that offer cost savings will be entitled to an award equivalent of 10 percent of the initial first years projected savings--up to a maximum of $3000. Upon acceptance of a cost savings IDEA, an initial award amount, up to, and not exceeding $200, may be given to the employee. The remainder of the award will be granted upon project implementation and verification of savings achieved. Other approved IDEAs for improvements which are not significant cost savings, may be awarded in lump sum amounts of $50, $100, $150 or $200 as deemed appropriate by the Screening Committee. Approved team- project proposal awards will be equally shared by team members whose signatures appear on the submitted IDEA form. In some cases, non-monetary compensation will also be considered. The Screening Committee will provide monthly reports to the Executive Management Team on the status of IDEAs being submitted, IDEAs that are approved, or IDEAs that are not accepted. /cmc C: AGM-Administration AGM-Operations General Manager Revised June 4, 1997 H:\WP.DTA\ADMIN\2150\CHAUDHRY\IDEAPROG\AIT-IDEA Page 3 of 3 Incentives (for) Districts Employees Achievements What is the IDEA Program? The Incentives (for) Districts Employees Achievements (IDEA) Program is a program which recognizes that many of the most effective ideas for enhancing or improving Districts' procedures on safety, working conditions, or work methods (practices) come from employees. Who can submit IDEA? The program encourages all employees up to, and including, first-line supervisory level to extend their creative thoughts beyond the boundaries of their own job and submit their ideas to the IDEA Screening Committee for consideration. What requirements are needed for submitting an IDEA? For an IDEA to be considered, it must identify an opportunity for improvement as well as offer an original solution. Suggestions are encouraged that save time, labor, material, money, supplies or other resources, and that improve service, methods, procedures for safety and for work conditions. It must not have been under active consideration during the previous twelve-month period, nor be in conflict with existing Districts' policies and Board approved procedures. Proposals that affect Districts' administrative policies or decisions will not be considered for an award. What is the procedure for submitting an IDEA? All suggestions should include specific information describing how the proposal could be accomplished. This information must be sufficiently detailed to permit an evaluation of the proposal. Obtain an IDEA packet through the Control Center at Plant No. 1, or obtain a packet through the Operations Center at Plant No. 2. Submit each idea on a separate IDEA form and include all attachments. When submitting an IDEA, please type or print with black ink. Sign and date your IDEA form. Retain a copy for your files. Completed packets can be sent through inter-office mail for submittal to the IDEA Screening Committee. Send completed packets to: I ADMINISTRATION -DEPARTMENT 2150 -ATTENTION IDEA PROGRAM What happens to my IDEA once it is received? Upon receiving the proposal, a tracking number will be assigned and this number will be entered into a database. You will be sent a letter to confirm receipt of your IDEA. A copy of the proposal will be sent to your supervisor, and one copy will be forwarded to the Screening Committee for review. If necessary, the person(s) submitting proposal may be contacted at this point for further information. H:\WP .DTA\ADMIN\2150\CHAUDHRY\IDEAPROG\IDEAPROG.FRM Revised 3/5/97 Page 1 of4 IDEA Incentives (for) Districts Employees Achievements I Tille of Suggestion: I --Thia space,for office use only. No: . j ·'•· Date Rec'd: ORIGINATOR #1 Last: First: Initial: Your Title: Supervisors Name: Department Name: Division Name: (Circle one) Plant 1 or Plant 2 Work Ext: ORIGINATOR #2 Last: First: Initial: Your Title: Supervisors Name: Department Name: Division Name: (Circle one) Plant 1 or Plant 2 Work Ext: ORIGINATOR #3 Last: First: Initial: Your Title: Supervisors Name: Department Name: Division Name: (Circle one) Plant 1 or Plant 2 Work Ext: --------------------------------------- I agree that the use by the Districts of this proposal/suggestion shall not form the basis of a future claim upon the County Sanitation Districts of Orange County by me, my heirs, successors or assigns. (If this is a team suggestion, it must be signed by all suggesters.) Signature: ______________ _ Date: ------- Signature: ______________ _ Date: ------- Signature: ______________ _ Date: ------- *NOTE: If this is a team suggestion with more than three suggesters, please copy this form to include additional signatures. H:\WP.DTA\ADMIN\2150\CHAUDHRY\IDEAPROG\IDEAPROG.FRM Revised 3/5/97 Page 3 of 4 ~ What is the Screening Committee and what is their Role? . . . The Screening Committee is comprised of at least one representative from each department. The Screening Committee will evaluate projects, approve or disapprove IDEAs submitted, interact with Clearing House Committee, and will establish award amounts for successful IDEAs. The Screening Committee will meet once a month to evaluate IDEAs submitted from the previous month. You will receive notification from the Screening Committee if your IDEA is approved, disapproved or considered ineligible. Your IDEA may be forwarded to the Clearinghouse Committee for further review. The Screening Committee will meet on the second Tuesday of each month. The Committee will be using the first part of the meeting as a forum for those employees who have submitted an IDEA and who wish to discuss their suggestion(s) with the committee. Contact a Screening Committee representative for meeting location and time. What is the Clearinghouse Committee and what is their Role? The Clearinghouse Committee is responsible for the technical evaluation, tracking and review of capital improvement small projects. This group is comprised of staff from Engineering, O&M, GSA and Technical Services. Upon the Screening Committee's request, the Clearinghouse will provide additional technical evaluation and review/perform economic cost benefit analysis. Additionally, it will ascertain that the proposed suggestion does not conflict with or duplicate any elements of current or upcoming engineering projects. What will be the criteria used for approving or disapproving an IDEA? -Utility -Economic viability; reductions in materials, supplies, equipment or work hours. -Effect on plant reliability. -Effect on individual departments. -Effect on process. -Impact on budgets and the cost to implement. -Intangible benefits; improved safety, better method, higher employee morale, improved service, improved public relations. -IDEA is beyond the scope of suggester's normal duties and responsibilities. What type of award can I expect to receive? Successful IDEAs that offer cost savings will be entitled to an award equivalent of 10 percent of the initial first years projected savings-up to a maximum of $3000. Upon acceptance of a cost savings IDEA, an initial award amount, up to, and not exceeding $200, may be given to the employee. The remainder of the award will be granted upon project implementation and verification of savings achieved. Other approved IDEAs with intangible benefits may be awarded in lump sum amounts of $50, $100, $150 or $200 as deemed appropriate by the Screening Committee. Approved team-project proposal awards will be equally shared by team members whose signatures appear on the submitted IDEA form. In some cases, non-monetary compensation will also be considered. Screening Committee Members and Extensions Pat Carnahan (2144) Corina Chaudhry (2003) Jim Elo (6031) Scott McBride (3207) Jim Mccann (6035) Kathy Millea (5053) Pete Morrison (6055) Karl Nordgren (6151) Fred O'brien (3703) John Radka (6104) H:\WP.OTA\AOMIN\2150\CHAUOHRY\IOEAPROG\IDEAPROG.FRM Revised 3/5/97 Melinda Sargent (3735) Yvonne Schwab-Hauser (3013) Wendy Sevenandt (5058) John Stephens (3252) Mitch Trivanovich (6095) Page 2 of 4 If Drawings are being submitted, ~ they attached? Yes O No 0 What is your best estimate of the net savings that might be realized by this proposal (1st year savings, lifespan savings, cost to implement)? Show or Attach your calculations. 1) Describe your idea or suggestion in sufficient detail to permit an evaluation of its potential for savings or improvement. Attach additional sheets as necessary. 2) What prompted your suggestion or idea? 3) How will implementation of your proposal improve or benefit the Districts? --------------------Additional Remarks: , . H:\WP.DTA\ADMIN\2150\CHAUDHRY\IOEAPROG\IOEAPROG.FRM Revised 3/5/97 Page4of4 ,, )> :c ::0 0 )> r m z 0 )> ::0 JUNE 11, 1997 .1WiJ;1;:,~[ii Report on Proposition 218 -Orange County's Request for Release i!iH"i\t:})j;'":}:""~~t~----------------------------~------11 :/' · Hf:'~/:I ,)i!jt Integrated Emergency Response Plan Information Information '''jj .... ,;:''!jjiJ •. ,· .1 ••• : ... 1..1------------------------------1---------11 ·· .. :::mw ~,,,,,... n:11]1 Annual Review of Investment Policy .. t°1:,.;;ffl.: .. ; 'i1 .111rtili1------------------------------1---------1• ';: ·.;ijj!'_,:, :a·: :'.i,. -"""' iF Computer Acquisition Program for Employees !' ' ;j;~i:;j:i!l Delegation of Authority Policy Changes Action Action Action r;~3sipt;',1'.' '; Accumulated Funds & Reserves Policy Action !~~r== ··· ., ;i11------------------------------1-------11 i(i;: ~•-... :H ,I/ . ,!~ :E,.)W Fourth Quarter Budget & Performance Review Action ·:'.j~'7rji'.,, '~1------------------------------1-------ll ::j::1 Quarterly Investment Management Report ,Lil C . . P U d :iiil ommumcat1ons rogram p ate Action Information ••• -·· I. 1:'\! ,. it)ct.-11F1'.'?HW Human Resources Policies and Procedures Update Action i: I. i1 /tE:1-----------------------------------•I 3"~:L:-:: r1: :-1 .:; 1::Et • • • ~:s~st'·:, .. =' • JI Selection of Fmancmg Team !::~t~; ;:, 'r.'~:;.' Broadbanding Process Update ,,/i;, Ht, Trammg Program Update Action Action Information Independent Auditor's Report Action 1996-97 Management Letter Action H:\WP.DTAIFIN\2210\CRANEIFAHR\FAHR.97\JUNE\CAL6.97 CSDOC e P.~. Box 8127 e Fountain Valley, CA 92728-8127 e (714) 962-2411