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Home My WebLink About1998-10-21Revised DRAFT MINUTES OF FINANCE. ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Orange County Sanitation District Wednesday, October 21, 1998, 5:30 p.m. ,,.-n:u1.,,r,, •· ~ ~ -c. ... :> ~ii·~ t__.,,~~-'] i;i ·•· -•. . ,, \,?~-~ /_:; ,.,.-:; . ...... •~\• '''--..,;i=ll.•"1i;. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on October 21, 1998 at 5:30 p.m., in the District's Administrative Office. \ (1) The roll was called and a quorum declared present, as follows: (2) FAHR COMMITTEE MEMBERS: OTHERS PRESENT: Directors Present: George Brown, Chair John J. Collins, Past Board Chair Barry Denes Burnie Dunlap, Chair Norman Z. Eckenrode Mark Leyes William G. Steiner Peer Swan, Board Vice Chair Directors Absent: John M. Gullixson Mark A. Murphy Thomas R. Saltarelli APPOINTMENT OF CHAIR PRO TEM Tom Woodruff, General Counsel Toby Weissert, Carollo Engineers Ryal Wheeler, Foreman & Citizen STAFF PRESENT: Don McIntyre, General Manager Blake Anderson, Assistant General Manager Mike Peterman, Director of Human Resources Gary Streed, Director of Finance Robert Ghirelli, Director of Technical Services Patrick Miles, Director of Information Technology Steve Kozak, Financial Manager Mike White, Controller Lisa Tomko, Human Resources Manager Dawn McKinley, Sr. Human Resources Analyst Lenora Crane, Committee Secretary No appointment was necessary. (3) PUBLIC COMMENTS Mark Reid, representing the Supervisory and Professional Management Group, addressed the Committee and stated that the group has been trying to negotiate a new contract since their recent contract expired in June. Since they have been unable to reach a settlement, a meeting has been set up with State mediators tomorrow. Mr. Reid reviewed the group's position on the issues involved. Mr. Reid left at the conclusion of his comments. OCSD • P.O. Box 8127 • Fountain Valley, CA 92728-8127 • (714) 962-2411 Minutes of the Finance, Administration and Human Resources Committee Meeting Page 2 October 21, 1998 (4) RECEIVE, FILE AND APPROVE DRAFT MINUTES OF PREVIOUS MEETING The minutes of the September 9, 1998 Finance, Administration and Human Resources Committee were approved as drafted. (5) REPORT OF THE COMMITTEE CHAIR Chair Brown advised that there would be no meeting in November due to the Veteran's Day and Thanksgiving holidays, and that the next regularly scheduled meeting will be on December 9, 1998. (6) REPORT OF THE GENERAL MANAGER Don McIntyre advised the Committee that there is a report on tonight's agenda regarding government parcels that have not been billed for user fees. He stated that the Grand Jury has contacted him and would like to discuss the issue. He and Gary Streed are scheduled to meet with Mark Greshem and his group from the Grand Jury a week from Thursday. (7) REPORT OF ASSISTANT GENERAL MANAGER Blake Anderson reported that negotiations started yesterday with Kern County's staff regarding the biosolids matter. After only two hours, an effective agreement was reached on what the terms of an MOU could be. This item will be brought to the District's Board next Wednesday, and to Kern County's Board of Supervisors next Tuesday. The deal points are that $2.12 a ton for the first year will be charged with a traffic study to be conducted later to confirm what the impacts are. The prepayment for the District is $750,000, to be credited back over time as part of the ongoing fees. The prepayment will not be made until a long-term ordinance has been adopted by Kern County's Board of Supervisors. The fee may eventually be down to $1 per ton, once solid data is received. Blake stated that the District's Board must determine whether any host fees should be charged by Kern County. There are discernible impacts on the roads and there are costs to administer the program. He advised there is a considerable amount of political heat from both the opponents and proponents of biosolids in Kern County. (8) REPORT OF DIRECTOR OF FINANCE • The Treasurer's Report was placed before the Committee prior to the meeting in accordance with the Investment Policy and Government Code requirements. • Mr. Streed announced that Michelle Tuchman, Director of Communications, is out of town on training and requested that he inform the Committee that she received two phone calls from reporters from the Register and the Times regarding collecting user fees for city-owned buildings. At this point neither of the reporters have indicated any interest in writing a story, and are currently only interested in collecting facts, however, this happened prior to the Grand Jury's request to set up a meeting. (9) REPORT OF DIRECTOR OF HUMAN RESOURCES The Director of Human Resources did not make a report. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 3 October 21, 1998 (10) REPORT OF DIRECTOR OF COMMUNICATIONS The Director of Communications was not in attendance. (11) REPORT OF GENERAL COUNSEL Tom Woodruff reported that the District was served with a Summons and Complaint yesterday afternoon by 13 of our former employees who were either terminated or resigned as a result of the drug investigation. Tom advised he will keep the Committee updated on this issue. (12) CONSENT CALENDAR ITEMS (Items A-C) A. FAHR98-72: Receive and file Treasurer's Report for the month of September 1998: The 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. B. FAHR98-73: Receive and file Certificates of Participation (COP) Monthly Report. C. FAHR98-74: Receive and file Employment Status Report. END OF CONSENT CALENDAR Consideration of items deleted from Consent Calendar, if any. Motion: Moved, seconded and duly carried to approve the recommended actions for items specified as 12(A), 12(8), and 12(C) under Consent Calendar. (13) ACTION ITEMS (Items A-C) A. FAHR98-75: Receive and file initial report of General Manager-approved purchases in amounts exceeding $50,000. Motion: Moved, seconded and duly carried to receive and file this report. B. FAHR98-76: Receive and file status report on staffs efforts to review the Assessor's data base for undercharged and uncharged parcels. Committee Discussion: Gary Streed gave a status report on the progress staff has made after receiving direction from the Committee to find a way to either find an alternate staff person, or hire an outside contractor, to review the Assessor's data base for proper classifications of properties, for proper square footage, or any square footage of buildings. He also gave a progress report to date on resolving the government-owned parcels issue. Mr. Streed advised that the Assessor has told his Minutes of the Finance, Administration and Human Resources Committee Meeting Page 4 October 21, 1998 staff that there are only 1,050 governmentally owned parcels with development that may be using the sewer, which is a significantly lower figure than originally thought. We will be evaluating a way to identify and visit those parcels and get their square footage, he advised. · Director Leyes reported that he also has spoken to Jason Kendal of the Times, and discussed with him some of his own perspectives on the government-owned parcels issue. Director Leyes has now referred Mr. Kendal back to Gary Streed. After discussion on this item, it was the consensus of the Committee that staff should be given some direction on how to proceed on this item. Motion: Moved, seconded and duly carried to direct staff to proceed to develop a scope of work and a Request for Proposals for the appropriate services. If, necessary, this item can be brought to the Steering Committee next month. C. FAHR98-77: Adjust the pay ranges of the Assistant General Manager, the Director of Communications, and the Director of Information Technology positions After considerable discussion on this item, the Committee agreed that in order for the Board to make informed decisions, establish a position, and give clear direction to Executive Management, a workshop should be held. It was further agreed that the Steering Committee will discuss this issue and decide on a date for the workshop. Director Collins requested that staff provide the Board with the number of employees each Manager supervises during the workshop. Motion: Moved, seconded and duly carried to approve the current pay levels, including the unpaid July 1998 adjustments, out of range for the Assistant General Manager, Director of Communications, Director of Information Technology, and Controller positions, and adjust the pay ranges at a later date. (14) INFORMATIONAL PRESENTATION A. OMTS-030: Year 2000 (Y2K) Date Change Compliance Project Patrick Miles, Director of Information Technology, gave a slide presentation regarding the Year 2000 (Y2K) Date Change Project for the Committee's information. The OMTS Committee reviewed the Y2K report at their meeting of October 14, 1998, and will be making a recommendation to the Board of Directors on October 28th. (15) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There was no other business discussed. " • f .. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 5 October 21, 1998 (16) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (17) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (18) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled for December 9, 1998 at 5:30 p.m. (19) CLOSED SESSION The Chair reported to the Committee the need for a Closed Session, as authorized by Government Code Sections 54957.6, to discuss and consider the item that is specified as Item 19(A)(1) on the. published Agenda. The Committee convened in closed session at 6:43 p.m. Confidential Minutes of the Closed Session held by the Finance, Administration and Human Resources Committee have been prepared in accordance with California Government Code Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. No reportable action was taken re Agenda Item 19 (A)(1). At 7:10 p.m., the Committee reconvened in regular session. (20) ADJOURNMENT The Chair declared the meeting adjourned at approximately 7:12 p.m. Submitted by: ~~ FAHR Committee Secretary H:\wp.dlaVin\210'crane\FAHR\FAHR98\0cflMIN1021.doc FILED IN THE OFFICE OF THE SECRETARY ORANGE COUNTY SANITATION DISTRICT OCT 28 1998 av __.j/)~. f.~, ---DRAFT MINUTES OF FINANCE. ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Wednesday, October 21, 1998, 5:30 p.m. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on October 21, 1998 at 5:30 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: FAHR COMMITTEE MEMBERS: OTHERS PRESENT: Directors Present: George Brown, Chair John J. Collins, Past Board Chair Barry Denes Burnie Dunlap, Chair Norman Z. Eckenrode Mark Leyes William G. Steiner Peer Swan, Board Vice Chair Directors Absent: John M. Gullixson Mark A. Murphy Thomas R. Saltarelli (2) APPOINTMENT OF CHAIR PRO TEM No appointment was n~cessary. (3) PUBLIC COMMENTS Tom Woodruff, General Counsel Toby Weissert, Carollo Engineers Ryal Wheeler, Foreman & Citizen STAFF PRESENT: Don McIntyre, General Manager Blake Anderson, Assistant General Manager Mike Peterman, Director of Human Resources Gary Streed, Director of Finance Robert Ghirelli, Director of Technical Services Patrick Miles, Director of Information Technology Steve Kozak, Financial Manager Mike White, Controller Lisa Tomko, Human Resources Manager Dawn McKinley, Sr. Human Resources Analyst Lenora Crane, Committee Secretary Mark Reed, representing the Supervisory and Professional Management Group, addressed the Committee arid stated that the group has been trying to negotiate a new contract since their recent contract expired in June. Since they have been unable to reach a settlement, a meeting has been set up with State mediators tomorrow. Mr. Reed reviewed the group's position on the issues involved. OCSD • P.O.Box 8127 • FountainValley,CA92728-8127 • (714) 962-2411 Minutes of the Finance, Administration and Human Resources Committee Meeting Page 2 October 21, 1998 (4) RECEIVE, FILE AND APPROVE DRAFT MINUTES OF PREVIOUS MEETING The minutes of the September 9, 1998 Finance, Administration and Human Resources Committee were approved as drafted. (5) REPORT OF THE COMMITTEE CHAIR Chair Brown advised that there would be no meeting in November due to the Veteran's Day and Thanksgiving holidays, and that the next regularly scheduled meeting will be on December 9, 1998. (6) REPORT OF THE GENERAL MANAGER Don McIntyre advised the Committee that there is a report on tonight's agenda regarding government parcels that have not been billed for user fees. He stated that the Grand Jury has contacted him and would like to discuss the issue. He and Gary Streed are scheduled to meet with Mark Gresham and his group from the Grand Jury a week from Thursday. (7) REPORT OF ASSISTANT GENERAL MANAGER Blake Anderson reported that negotiations started yesterday with Kern County's staff regarding the biosolids matter. After only two hours, an effective agreement was reached on what the terms of an MOU could be. This item will be brought to the District's Board next Wednesday, and to Kern County's Board of Supervisors next Tuesday. The deal points are that $2.12 a ton for the first year will be charged with a traffic study to be conducted later to confirm what the impacts are. The prepayment for the District is $750,000, to be credited back over time as part of the ongoing fees. The prepayment will not be made until a long-term ordinance has been adopted by Kern County's Board of Supervisors. The fee may eventually be down to $1 per ton, once solid data is received. Blake stated that the District's Board must determine whether any host fees should be charged by Kern County. There are discernible impacts on the roads and there are costs to administer the program. He advised there is a considerable amount of political heat from both the opponents and proponents of biosolids in Kern County. (8) REPORT OF DIRECTOR OF FINANCE • The Treasurer's Report was placed before the Committee prior to the meeting in accordance with the Investment Policy and Government Code requirements. • Mr. Streed announced that Michelle Tuchman, Director of Communications, is out of town on training and requested that he inform the Committee that she received two phone calls from reporters from the Register and the Times regarding collecting user fees for city-owned buildings. At this point neither of the reporters have indicated any interest in writing a story, and are currently only interested in collecting facts, however, this happened prior to the Grand Jury's request to set up a meeting. (9) REPORT OF DIRECTOR OF HUMAN RESOURCES The Director of Human Resources did not make a report. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 3 October 21, 1998 (10) REPORT OF DIRECTOR OF COMMUNICATIONS The Director of Communications was not in attendance. (11) REPORT OF GENERAL COUNSEL Tom Woodruff reported that the District was served with a Summons and Complaint yesterday afternoon by 13 of our former employees who were either terminated or resigned as a result of the drug investigation. Tom advised he will keep the Committee updated on this issue. (12) CONSENT CALENDAR ITEMS (Items A -C) A. FAHR98-72: Receive and file Treasurer's Report for the month of Septembert 1998: The 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. B. FAHR98-73: Receive and file Certificates of Participation (COP) Monthly Report. C. FAHR98-74: Receive and file Employment Status Report. END OF CONSENT CALENDAR Consideration of items deleted from Consent Calendar, if any. Motion: Moved, seconded and duly carried to approve the recommended actions for items specified as 12(A), 12(8), and 12(C) under Consent Calendar. (13) ACTION ITEMS (Items A-C) A. FAHR98-75: Receive and file initial report of General Manager-approved purchases in amounts exceeding $50,000. Motion: Moved, seconded and duly carried to receive and file this report. B. FAHR98-76: Receive and file status report on staffs efforts to review the Assessor's data base for undercharged and uncharged parcels. Committee Discussion: Gary Streed gave a status report on the progress staff has made after receiving direction from the Committee to find a way to either find an alternate staff person, or hire an outside contractor, to review the Assessor's data base for proper classifications of properties, for proper square footage, or any square footage of buildings. He also gave a progress report to date on resolving the government-owned parcels issue. Mr. Streed advised that the Assessor has told his Minutes of the Finance, Administration and Human Resources Committee Meeting Page4 October 21, 1998 staff that there are only 1,050 governmentally owned parcels with development that may be using the sewer, which is a significantly lower figure than originally thought. We will be evaluating a way to identify and visit those parcels and get their square footage, he advised. Director Leyes reported that he also has spoken to Jason Kendal of the Times, and discussed with him some of his own perspectives on the government-owned parcels issue. Director Leyes has now referred Mr. Kendal back to Gary Streed. After discussion on this item, it was the consensus of the Committee that staff should be given some direction on how to proceed on this item. Motion: Moved, seconded and duly carried to direct staff to proceed to develop a scope of work and a Request for Proposals for the appropriate services. If, necessary, this item can be brought to the Steering Committee next month. C. FAHR98-77: Adjust the pay ranges of the Assistant General Manager, the Director of Communications, and the Director of Information Technology positions After considerable discussion on this item, the Committee agreed that in order for the Board to make informed decisions, establish a position, and give clear direction to Executive Management, a workshop should be held. It was further agreed that the Steering Committee will discuss this issue and decide on a date for the workshop. Director Collins requested that staff provide the Board with the number of employees each Manager supervisors during the workshop. Motion: Moved, seconded and duly carried to approve the current pay levels, including the unpaid July 1998 adjustments, out of range for the Assistant General Manager, Director of Communications, Director of Information Technology, and Controller positions, and adjust the pay ranges at a later date. (14) INFORMATIONAL PRESENTATION A. OMTS-030: Year 2000 (Y2K) Date Change Compliance Project Patrick Miles, Director of Information Technology, gave a slide presentation regarding the Year 2000 (Y2K) Date Change Project for the Committee's information. The OMTS Committee reviewed the Y2K report at their meeting of October 14, 1998, and will be making a recommendation to the Board of Directors on October 28th. (15) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There was no other business discussed. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 5 October 21, 1998 (16) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (17) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (18) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled for December 9, 1998 at 5:30 p.m. (19) CLOSED SESSION The Chair reported to the Committee the need for a Closed Session, as authorized by Government Code Sections 54957.6, to discuss and consider the item that is specified as Item 19(A)(1) on the published Agenda. The Committee convened in closed session at 6:43 p.m. Confidential Minutes of the Closed Session held by the Finance, Administration and Human Resources Committee have been prepared in accordance with California Government Code Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. No reportable action was taken re Agenda Item 19 (A)(1). At 7:10 p.m., the Committee reconvened in regular session. (20) ADJOURNMENT The Chair declared the meeting adjourned at approximately 7:12 p.m. Submitted by: ~ (/4~ · e ora Crane ~ Secretary \\radon\dale1\wp.dle\fin\210'aane\FAHR\FAHR98\0ctlMIN1021.dac STATE 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 October 21, 1998, was duly posted for public inspection in the main lobby of the District's offices on October 14, 1998. Posted: By: IN WITNESS WHEREOF, I have hereunto set my hand this 21st day of October 1998. Penny Kyle, Secret Orange County San1tatio of the Board of Directors of _W: __ ._/_,_f_ 1 _. ___ , 1998, /~.'(JV @)P.M. ~ H :\wp.dta\fin\21 0\crane\FAHR\FAHRSB\Oct\CERTPO 1 0-98.doc DISTRIBUTION FAHR COMMITTEE MEETING PACKAGE Full Agenda Package 53 Committee 16 & Mailing List Donald F. McIntyre 1 Blake P. Anderson 1 (3-hole punched) Dan Dillon 1 Marc Dubois 1 Jeff Esber 1 Ed Hodges 1 Steve Kozak 1 Penny Kyle 2 David Ludwin 1 Greg Mathews 1 Partick Miles 1 Bob Ooten 1 Mike Peterman 1 Gary Streed 1 Michelle Tuchman 1 (3-hole punched) Robert Ghirelli, 1 Terri Josway 1 Dan Tunnicliff (H.R.) 1 Mike White 1 (3-hole punched) Ed Torres 1 Cagle, Brad 1 Lisa Tomko 1 Nick Arhontes 1 Dawn McKinley 1 .. Rob Thompson 1* Gail Cain 1 Bob Geggie 1 Jim Herberg 1 Patricia Jank 1 Lenora Crane 1 File 1 Extras 4 Notices and Agenda 12 Posting 1 Jean Tappan (include Mins) 1 Anna Ubaldini 1 Frankie Woodside 1 Patricia Magnante 1 Janet Gray 1 Security 1 Extras 5 Ron Zenk, Dist. 14 Treasurer's Report Only C \\RADON\DATA 1 IWP .DTA IFIN\21 O\CRAN EIFAHRIDISTRIBUTIONLISTFAHR.DOC phone: (714) 962-2411 mailing address: P.O. Box 8127 Fountain Valley, CA 92728-8127 street address: 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Member Agencies 9 Cities Anaheim Brea Buena Park Cypress Fountain Valley Fullerton Garden Grove Huntington Beach Irvine La Habra La Palma Los Alamitos Newport Beach Orange Placentia Santa Ana Seal Beach Stanton Tustin Villa Park Yorba Linda County of Orange Sanitary Districts Costa Mesa Midway City Water Districts Irvine Ranch •RANGE COUNTY SANITATION DISTRICT NOTICE OF MEETING FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, OCTOBER 21, 1998 -5:30 P.M. DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708 A regular meeting of the Finance, Administration and Human Resources Committee of the Board of Directors of the Orange County Sanitation District, will be held at the above location, date and time. "To Protect the Public Health and the Environment through Excellence in Wastewater Systems" FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING DATES FAHR Committee Meeting Dates October 21, 1998 None Scheduled December 9, 1998 None Scheduled February 10, 1999 March 10, 1999 April 14, 1999 May 12, 1999 June 9, 1999 July 13, 1999 None Scheduled September 8, 1999 October 13, 1999 Board Meeting Dates October 28, 1998 November 18, 1998 December 16, 1998 January 27, 1999 February 24, 1999 March 24, 1999 April 28, 1999 May 26, 1999 June 23, 1999 July 28, 1999 August 25, 1999 September 22, 1999 October 27, 1999 ROLL CALL FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Meeting Date: October 21 1998 Time: 5:30 p.m. Adjourn: ____ _ COMMITTEE MEMBERS GEORGE BROWN (Chair) •.......••••••••••••••••••.•...••••••••••••.•...•••••••.•.•.. JOHN J. COLLINS (Past Board Chair) ...........•..•.•....•.•.......•...•.•..•. BARRY DENES ............................................................................. . BURNIE DUNLAP (Board Chair) .•...•...••....•..•.•.••.............•....•........ NORMAN ECKENRODE ••..••..•.••••••••••..•.•••••.•••••••••••...•.•.•••••.•••..•.... JOHN M. GULLIXSON .•••.••••.••••••.•........••••••••••••..••••••••••.•••..••••••••••• MARKLEYES ............................................................................... . MARK MURPHY ••••.••••••••••••.••..•.••••••••••••••••••.•••••••••••••...••••.••••••••.•.. THOMAS SALTARELLI •......••.•......•.••.......•...•.••.•.••.•.•.•......••.....•.•.• WILLIAM STEINER ....................................................................... . PEER SWAN (Board Vice Chair) ..•••••••••••••••••..•••••••••••.•...•.•••••••••••• STAFF DON MCINTYRE, General Manager ............................................... . BLAKE ANDERSON, Assistant General Manager ........................ .. ED HODGES, Director of General Services Administration .••••••..•• 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 .................... . PATRICK MILES, Director of Information Technology ••••••••..•....•... ROBERT GHIRELLI, Director of Technical Services ...••••••••••••••..... STEVE KOZAK, Financial Manager •••••••••••.•.••••••••••••••••••••..•••••••••..• MIKE WHITE, Controller ................................................................. . GREG MATHEWS, Assistant to the General Manager .................. .. TERRI JOSWAY, Training, Safety & Emergency Response Mgr. LISA TOMKO, Human Resources Manager ................................... . DAWN MCKINLEY, Sr. Human Resources Analyst ....................... . ROB THOMPSON, Plant Automation Manager .........•............•........ GAYN WINTERS, I.T. Consultant & President of Bristol Sys., Inc •• LENORA CRANE, Committee Secretary ••••••••••••••••••••••••••••••••••••••••. OTHERS TOM WOODRUFF, General Counsel .............................................. . TOBY WEISSERT, Carollo Engineers •••.•••••••••••••••••••••••••••...••••••••••• __ c: Debra Lacuna AGENDA REGULAR MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, OCTOBER 21, 1998, AT 5:30 P.M. ,ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California 92708 In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the District's 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. (1) ROLL CALL (2) APPOINTMENT OF CHAIR PRO TEM,. IF NECESSARY (3) 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). 2 October 21, 1998 (4) APPROVE MINUTES,OF PREVIOUS MEETING Approve draft minutes of the September 9, 1998, Finance, Administration and Human Resources Committee meeting. (5) REPORT OF FAHR COMMITTEE CHAIR (6) REPORT OF GENERAL MANAGER (7) REPORT OF ASSISTANT GENl::RAL MANAGER (8) REPORT OF DIRECTOR OF FINANCE (9) REPORT OF DIRECTOR OF HUMAN RESOURCES (10) REPORT OF DIRECTOR OF COMMUNICATIONS (11) REPORT OF GENERAL COUNSEL (12) CONSENT CALENDAR ITEMS Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: 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. A. FAHR98-72: 8. FAHR98-73: Receive and file Treasurer's Report for the month of September 1998: The Treasur:er's Report will be 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. · Receive and file Certificates of Participation (COP) Monthly Report. 3 October 21, 1998 C. FAHR98-74: Receive and file Employment Status Report. END OF CONSENT CALENDAR Consideration of items deleted from Consent Calendar, if any. (13) ACTION ITEMS A. FAHR98-75: B. FAHR98-76: C. FAHR98-77: Receive and file initial report of General Manager-approved purchases in amounts exceeding $50,000 (Gary Streed -5 minutes) Receive and file status report on staff's efforts to review the Assessor's data base for undercharged and uncharged parcels (Gary Streed -10 minutes) Adjust the pay ranges of the Assistant General Manager, the Director of Communications, and the Director of Information Technology positions (Mike Peterman -10 minutes) (14) INFORMATIONAL PRESENTATIONS A. OMTS98-030: Year 2000 (Y2K) Date Change Compliance Project. (Patrick Miles\Rob Thompson -15 minutes) (15) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY (16) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING (17) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (18) FUTURE METING bATSS The next Finance, Administration and Human Resources Committee Meeting is scheduled for December 9, 1998, at 5:30 p.m. 4 October 21, 1998 (19) CLOSED SESSION 'burirm the course of conducting the business set forth on tliis agenda as a regular meeting of the Committee, the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) 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 closed session and are not available for public inspection. At. such time as final actions are taken by the Committee on any of these sub· ects, the minutes wiU reflect all re , !Jired disclosures of information. A. Convene in closed session. 1. Confer with District's representatives re labor negotiations and compensation strategy discussion (Government Code Sections 54957 and 54957.6). 2. Reconvene in regular session. 3. Consideration of action, if any, on matters considered in closed session. Notice To Committee Members: For any questions on the agenda or wish to place any items on the agenda, Committee members should contact the Committee Chair or Secretary ten days in advance of the Committee meeting. i Committee Chair: 1Committee Secretary: i le George Brown Lenora Crane H:\WP .DT A\FIN\21 0\CRANE\FAHR\FAHR98\0Cn10-98AGENDA.DOC (562) 431-2185 (714) 593-7551 (714 962-3954 FAX 1 DRAFT MINUTES OF FINANCE. ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Wednesday, September 9, 1998, 5:30 p.m. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on September 9, 1998 at 5:30 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: Committee Directors Present: John J. Collins, Past Board Chair Barry Denes Norman Z. Eckenrode Mark Leyes Mark A. Murphy Thomas R. Saltarelli William G. Steiner Peer Swan, Board Vice Chair Committee Directors Absent: George Brown, Chair Burnie Dunlap, Board Chair John M. Gullixson other Directors Present: None. (2) APPOINTMENT OF CHAIR PRO TEM Staff Present: Blake Anderson, Assistant General Manager Mike Peterman, Director of Human Resources Gary Streed, Director of Finance Ed Hodges, Director of General Services Admin. Robert Ghirelli, Director of Technical Services Michelle Tuchman, Director of Communications Steve Kozak, Financial Manager Mike White, Controller Greg Mathews, Assistant to the General Manager Lisa Tomko, Human Resources Manager Dawn McKinley, Sr. Human Resources Analyst Lenora Crane, Committee Secretary others Present: Tom Woodruff, General Counsel Toby Weissert, Carollo Engineers Ryal Wheeler, Foreman & Citizen Director Saltarelli was appointed as Chair pro tern in Chair Brown's absence. (3) AGENDA The agenda was posted in accordance with the requirements of California Government Code Section 54954.2. OCSD • P .0. Box 8127 • Fountain Valley, CA 92728-8127 • (714) 962-2411 Minutes of the Finance, Administration and Human Resources Committee Meeting Page 2 September 9, 1998 (4) PUBLIC COMMENTS The Chair opened the meeting to public comments. Ryal Wheeler, 14832 Newland St., Midway City, CA, a District employee and citizen, addressed the Committee and expressed his concerns regarding Item No. 14 (c). Mr. Wheeler read several excerpts from a report prepared by the American Compensation Association regarding the results of a survey conducted of 116 companies on the broadbanding concept. Mr. Wheeler also expressed his personal feelings regarding broadbanding the salaries of Executive Management, Division Managers and Supervisory and Professional employees. In response to Director Collins, Mr. Wheeler advised he was not speaking on behalf of any group or individuals, but for himself. (5) APPROVE MINUTES OF PREVIOUS MEETING Motion: Moved, seconded, and duly carried to approve the minutes of the July 15, 1998, Finance, Administration and Human Resources Committee meeting as drafted. (6) REPORT OF THE COMMITTEE CHAJR • The October FAHR Committee meeting date has been rescheduled to October 21, 1998. • Item No. 15 on the printed Agenda has been rescheduled to the October 21st meeting. (7) REPORT OF THE GENERAL MANAGER • General Manager Don McIntyre was on vacation, and Assistant General Manager Blake Anderson updated the Committee on the Kern County Urgency Ordinance which was passed last month regarding regulating the agricultural use of biosolids. Two elements of that ordinance concern 1) how biosolids are used, monitored, transported, etc.; and 2) the $5 per ton tipping fee being charged to cover road costs. The Kern County Board of Supervisors is reconsidering the Ordinance, especially the tipping fee provisions. Mr. Anderson advised he will keep the Directors apprised of any new developments. (8) REPORT OF ASSISTANT GENERAL MANAGER The Assistant General Manager had nothing further to report. (9) REPORT OF DIRECTOR OF FINANCE • Director of Finance Gary Streed advised the Committee that the Treasurer's Report was placed before them prior to the meeting in accordance with the Investment Policy and Government Code requirements. • The user fee rate structure has been delivered to the County and the tape is being processed. The total fees levied for next year are expected to be $66.9 million. The new rate structure did not result in a decrease or budget shortfall. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 3 September 9, 1998 • Mr. Streed updated the Committee regarding Ray Latrelle, a citizen of Garden Grove, who has made several presentations to the Board about parcels owned by government agencies that are not paying user fees. The issue is that some government parcels are not paying user fees and many are. Those that are not paying user fees do not have recorded square footage of development in the Assessor's office. Mr. Latrelle has not understood that the Sanitation District's fees are based on square footage of building, and Garden Grove's is based on square footage of parcel. Unless it is recorded, we have no way of knowing there has been any development. Mr. Streed advised the Committee of the steps he is taking to develop a program to resolve this issue. • Director Mark Leyes cautioned staff about fulfilling too many requests from citizens such as Mr. Latrelle. Since District employees work for the Board, citizens should contact Board members if there are issues to be resolved. • Director Swan initiated a discussion regarding hiring an outside firm to review the Assessor's tax rolls for parcels that may have been missed that should be paying user fees similar to the Trammel-Crow case. The Committee directed staff to agendize this item for a future meeting and come up with a strategy. (10) REPORT OF DIRECTOR OF HUMAN RESOURCES • Human Resources Director Mike Peterman referenced Ryal Wheeler's report and advised that broadbanding is something management is committed to because of the cultural change issues at the District, changes regarding flattening the organization and reducing hierarchy, and the pay for performance side of broadbanding. He indicated that opposition to broadbanding has been an issue during negotiations with the labor unions. • Mr. Peterman stated that in October, there will be an item on the Agenda under "Closed Session" to discuss the District's future labor relations and compensation strategy. • Mr. Peterman announced that a brief Closed Session is on the Agenda for tonight's meeting. (11) REPORT OF DIRECTOR OF COMMUNICATIONS • Michelle Tuchman, Director of Communication advised the Committee that Director Collins has responded to the "Alice In Wonderland Tax Formulas" Editorial which appeared in The Register re user fee increases. (12) REPORT OF GENERAL COUNSEL • Re the Trammel-Crow case, Tom Woodruff advised he has met with their lead counsel, and they have threatened two law suites against the District momentarily. Mr. Woodruff stated that if the Committee required more information, he could provide it in Closed Session. Minutes of the Finance, Administration and Human Resources Committee Meeting Page4 September 9, 1998 (13) CONSENT CALENDA ITEMS (Items a -d) a. FAHR98-62: Receive and file Treasurer's Report for the month of August 1998: The Treasurer's Report was 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. c. FAHR98-64: Receive and file Employment Status Report. d. FAHR98-65: Receive and file the Quarterly Investment Management Program Report for the period April 1 through June 30, 1998. END OF CONSENT CALENDAR Item No. 13 (b) was deleted from the Consent Calendar. Motion: Moved, seconded and duly carried to approve the recommended actions for items specified as 13(a), 13(c), and 13(d) under Consent Calendar. Consideration of items deleted from Consent Calendar, if any. 13 b. FAHR98-63: Receive and file Certificates of Participation (COP) Monthly Report. Committee Discussion: The Committee determined from staff that the rolling 12-month COP report was included as the last page on the COP Agenda Report. The Financial Manager has been in contact with J.P. Morgan on a daily basis to discuss rates, and staff will be watching the other remarketing agents more closely as well. Staff will be meeting early next month to develop a better monitoring program for the District. The Committee expressed disappointment that J.P. Morgan has had to be pushed to give the District a better rate performance. Motion: Moved, seconded and duly carried to receive and file this report. (14) ACTION ITEMS (Items a -e) a. FAHR98-66: Receive and file FY 1997/98 End of Year Operational Report. Motion: Moved, seconded and duly carried to receive and file this report. b. FAHR98-67: Approve the revised rates for flow, BOD and suspended solids for Class I and Class II Source Control Permit Users. Committee Discussion: During discussion on this item the Committee requested that staff notify Board Members in advance of the names of any businesses in their revenue zones that will have the biggest increases, after staff reviews the entire list of permittees. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 5 September 9, 1998 Motion: Moved, seconded and duly carried to approve staffs recommendation. c. FAHR98-68: Broadband Executive Management and Division Manager's Classifications and Pay. Committee Discussion: The Committee expressed support for broadbanding and its concept, but more work is needed in the two upper management groups. Some of the Committee members felt that broadbanding is least meaningful for upper management employees, however, it would be more effective and most meaningful at the lower levels of the organization. The lower level employees would benefit because broadbanding would provide an incentive for them to take on more responsibility, work longer hours, become better educated and assume more responsibility, but salaried and senior management employees are already expected to have these attributes. Director Mark Leyes requested a copy of the consultant's report on broadbanding. Mike Peterman advised he will have a compensation and labor relations strategy session next month with copies available for each of the Directors. Motion: Moved, seconded and duly carried to table this item, refer it back to staff and bring it back to a future meeting. d. FAHR98-69: Receive and file Report on District's Public Outreach Efforts for Motion: FY 97-98. Moved, seconded and duly carried to receive and file this report. e. FAHR98-70: Cooperative Projects Program: 1. Authorize the General Manager to combine the Water Conservation Cooperative Projects Program with the City Infiltration/Inflow Cooperative Projects Program. 2. Approve increase in the Fiscal Year 1998-99 combined . Cooperative Projects Program budget, CORF Budget, Section 8, Page 230, from $300,000 to $5,000,000. 3. Recommend adoption of Resolution OCSD 98-XX supporting in general water reclamation and water use efficiency. Committee Discussion: During discussion on this item, Mr. Hodges advised that Resolution 98-10 already supports the project and, therefore, he removed recommendation No. 3 from his report. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 6 September 9, 1998 The Committee expressed support for this project, however, the general consensus was that a separate committee needs to be set up to prepare guidelines for a project of this size which delineates what is to be accomplished, how the money is to be spent and must include a lot more detail and justifications. Motion: Moved, seconded and duly carried to refer this item back to staff. (15) INFORMATIONAL PRESENTATION a. FAHR98-71: YEAR 2000 (Y2K) DATE CHANGE COMPLIANCE PROJECT This item has been rescheduled for the October 21, 1998 FAHR meeting. (16) CLOSED SESSION The Chair reported to the Committee the need for a Closed Session, as authorized by Government Code Section 54957, to discuss and consider the item that is specified as Item 16(a)(1) on the published Agenda. The Chair also indicated a need to add one item needing immediate action that arose subsequent to the publication of the Agenda. He reported that additional items could be added pursuant to Government Code Section 54954.2(b)(2) upon a two-third's vote of the Committee. No other items would be discussed or acted upon. It was moved, seconded and duly carried that Item 16(a)(2) be added to the Agenda to discuss a potential matter of litigation re Claim of Crow Winthrop Development Limited Partnership. The Committee convened in closed session at 7:30 p.m. pursuant to Government Code Sections 54957 and 54956.9. Confidential Minutes of the Closed Session held by the Finance, Administration and Human Resources Committee have been prepared in accordance with California Government Code Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. No reportable action was taken re Agenda Items 16 (a)(1) and (2). At 7:50 p.m., the Committee reconvened in regular session. (17) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY Ryal Wheeler addressed the Committee once again to assure staff and the Committee that his purpose for attending the meeting was to ask the Committee to take another look at broadbanding. He was not at the meeting as a member of the SPMT Committee, just as an individual providing information. The information he provided came from Human Resources originally. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 7 September 9, 1998 (18) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING Agendize a report that discusses contracting the professional services of an agency to review the Assessor's Tax Rolls for parcels that should be paying user fees that may have been missed, and/or the advantages of conducting the review in-house. (19) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled for October 21, 1998 at 5:30 p.m. (20) ADJOURNMENT The Chair declared the meeting adjourned at approximately 7:51 p.m. Submitted by: c4z. ~ FAHR Committee Secretary \lradon\data1\wp.dtaVin\210'crane\FAHR\FAHR98\SepnMIN909.doc I FAHR COMMITTEE Meeting Date ToBd. 10/21/98 AGENDA REPORT Item Number Item Number 12 (b) Orange County sanitation District FROM: Gary Streed, Director of Finance Originator: Steve Kozak, Financial Manager SUBJECT: CERTIFICATES OF PARTICIPATION (COP) MONTHLY REPORT - SEPTEMBER 1998. (FAHR98-73) GENERAL MANAGER'S RECOMMENDATION Receive and file Certificates of Participation (COP) Monthly Report for September SUMMARY Since June 1995, the daily rate COP program remarketing agents have been PaineWebberforthe Series "A" and the 1993 Refunding COPs, and J.P. Morgan for the Series "C" COPs. Most fixed rate Series "8" COPs have been refunded and the 1992 Refunding COPs have always been remarketed by PaineWebber in a weekly mode. PROJECT/CONTRACT COST SUMMARY None. BUDGET IMPACT D This item has been budgeted. D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. ~ Not applicable (information item) ADDITIONAL INFORMATION Two graphical, and one tabular, reports are attached. The first graph entitled, "OCSD COP Rate History Report," 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." \lradonldata1'twp.dta\lin\210'cranelFAHRIFAHR98\0ct\FAHR9S-73.doc Revised: 115198 Page 1 The second bar chart entitled, "Comparative Daily COP Rate History Report," shows the performance of the District's Daily Rate COPs as compared to a composite index rate, which represents the average rate of six similar variable rate daily reset borrowings. The table entitled, "Daily COP Rate Comparisons," shows the monthly variable interest rate performance of the District's Daily Rate COPs as compared to the composite index. Estimated annual interest payments calculated for a standard $100 million par amount, are also shown. 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 maintains continuous rate monitoring and ongoing dialog with the remarketing agents to keep the Committee fully informed about developments in the program as they occur and at each meeting. ALTERNATIVES None. CEQA FINDINGS None. ATTACHMENTS 1. Graph -Comparative Daily COP Rate History Report 2. Graph -OCSD COP Daily Rate History Report 3. Tabular -Daily COP Rate Comparison GGS:SK:lc llladonldata1'1Np.dlll\lin\210\cranelFAHRIFAHR98\0ct\FAHR98-73.doc Revised: 115198 Page2 G) "CJ iil if C -c X )> DI 0 RATE(%) iil !!!. -t Q. a. m ~ iii 5 N w !1'-CJ'I a, ,, ::, 0 ..,II, 5· "3 0 0 0 0 0 0 0 DI N ::, N 0 0 0 0 0 0 0 0 0 _<D (6 01-Oct-97 -(D ~ IC 19. (0 'ii 15-Oct-97 _CD 5· DI N ::, w 0 CD (D 29-Oct-97 ;ii "CJ )> s:: -i m 12-Nov-97 ~ en -i I 26-Nov-97 1 (0 I I ~-I T I r I I 0 -.j 10-Dec-97 + I I ~ I * I • I I 0 24-Dec-97 + I I I J>I * • I I en C 07-Jan-98 + I l~I I * • I I 0 21-Jan-98 0 "tJ 04-Feb-98 en C +t 18-Feb-98 m~ )>"O ""C r -n, G)-· 04-Mar-98 --t -< :::I cnCD == ~ ~~ n, CD 18-Mar-98 "'CC" C" CD 01-Apr-98 aJ --t -, mm 15-Apr-98 t I ~ * I • I I :::C :c 29-Apr-98 ~ - ++ (0 en 13-May-98 (0 --t en'-00 0 0~ ~ ("). G)~ 27-May-98 CDC :::I-, cng 10-Jun-98 ,:J !:::::i "'C 24-Jun-98 m ""C 08-Jul-98 + .,....-:::::::: I I I * I • I I 0 :::c 22-Jul-98 t I I I J> I ; I ; I I --t 05-Aug-98 19-Aug-98 02-Sep-98 16-Sep-98 30-Sep-98 I I Prepared by Finance, 10/1/98, 3:14 PM -~ ~ w I-< D:: COMPARATIVE DAILY COP RATE HISTORY REPORT SEPTEMBER, 1998 6.00 -...---_:::==========----------------7 5.00 ------------·------------------------------ 4.00 - 2.00 1.00 • _ _ _ _ -· _,, __ _ I I o.oo l L'l\lW I u .... 1 1 lfm:l•J I t·iw"'I 1 ™''"l I E·_,, 1 WllWt 1 , Elli I r&,"ml DATE ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ tf > ci c ..c ti i > c :; ci ci:. 0 0 11) ('CJ 11) ""' <( ('CJ :::, -, :::, 11) Z O -, ~ ~ ~ -, <( ~ EIOCSD •COMPOSITE INDEX G :\excel .dta\fin\2220\geggi\Fi nance\dailycopintrate .xis Prepared by Finance, 10/1/98, 3:20 PM Oct-97 Nov-97 Dec-97 Jan-98 Feb-98 Mar-98 Apr-98 May-98 Jun-98 Jul-98 Aug-98 Sep-98 AVERAGE DAILY COP RATE COMPARISONS(%) OCTOBER, 1997 -SEPTEMBER, 1998 OCSD $100M $98.SM $46M Series"A" Series"C" Series 93 Ref PaineWebber J.P. Morgan Paine Webber 3.46 3.51 3.46 3.68 3.69 3.68 3.29 3.35 3.29 3.09 3.09 3.09 2.50 2.60 2.50 2.77 2.80 2.77 3.52 3.59 3.52 3.56 3.60 3.56 3.28 3.30 3.28 2.80 2.86 2.80 2.43 2.44 2.43 3.27 3.33 3.27 3.14% 3.18% 3.14% ESTIMATED ANNUAL INTEREST PAYMENTS PER $100M PAR AMOUNT $ 3,137,500 $ 3,180,000 $ 3,137,500 *FOOTNOTE Composite index consists of the following COP transactions: . IRWD, Series 86, $60M, Smith Barney . IRWD, Series 93 "A" Refunding, $87.6M, Bankers Trust . IRWD, Series 93 "B" Refunding, $41.8M, J.P. Morgan . IRWD, Series 95 Refunding, $117.8M, PaineWebber Composite Index• 3.38 3.68 3.33 3.10 2.53 2.80 3.55 3.57 3.27 2.79 2.40 3.24 3.14% $ 3,136,667 . Western Riverside Co. Reg. Wastewater Auth., Series 96, $25.4M, PaineWebber . Orange Co., Irvine Coast Asst. Dist. 88-1, $94.SM, J.P. Morgan G:\excel.dta\fin\2220\geggi\Finance\COPdaily$rate comparison • FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Mike Peterman, Director of Human Resources Originator: Patty Steeves, Human Resources Analyst Meeting Date 10/21/98 Item Number 12 (C) SUBJECT: EMPLOYMENT STATUS REPORT AS OF SEPTEMBER 24, 1998. (FAHR98-74) GENERAL MANAGER'S RECOMMENDATION Receive and file the Employment Status Report. SUMMARY Total FTE headcount at the District as of September 24, 1998 was 520.75. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. C8l' Not applicable (information item) ADDITIONAL INFORMATION To Bd. of Dir. Item Number The District had a full-time equivalent (FTE) headcount of 520.75 as of September 24, 1998. The actual number of employees was 528. The annual turnover rate is 4.6%. There were two new employees hired during the month of August: • Director of Technical Services (Technical Services Administration) • Collection Facilities Worker I (Collection Facilities Maintenance) H:\wp.dta'lin\210\cnlne\FAHR\FAHR98\0ct\FAHR96-74.doc Revised: 6130198 Page 1 There was one reassignment for the following position: • From: To: Lead Mechanic (Mechanical Maintenance) Office Aide (Communications) ALTERNATIVES None. CEQA FINDINGS None. ATTACHMENTS 1. September 24, 1998 Employment Status Report. 2. Performance compared to 5-Year Staffing Plan. H:lwp.dtaVin\210'cranelFAHRIFAHR9810c:t\FAHRll6-74.doc RtN!sed:813Cl/98 Page2 Employment Status Report Run Date: 24-Sep-98 ·'i .. . .,:.-i .• Regular Regular Total Vacant Positions :~j~ Regular Part-time Part-time FTE Positions FTE FTE FTE FTE wlin 5 yr plan ·,..__ •. ~ ~:. :•-Full-time 20hours 30hours Contract lntwn LOA Count FY9B-99 98-99 99--00 00.()1 01412 fFY99-00J 11 O • General Management Admin 4.00 0.00 0.00 o.oo 0.00 0.00 4.00 D.50 4.50 4.50 4.50 4.50 0.50 Total General Management 4.00 0.00 0.00 0.00 0.00 0.00 4.00 0.50 4.50 4.50 4.50 4.50 0.50 ' 210 -Finance Administration 4.00 0.00 0.00 0.00 0.00 0.00 4.00 0.00 4.00 4.00 4.00 4.00 0.00 220 • Accounting 18.00 0.00 0.00 0.00 0.00 0.00 1a.ooli 0.00 18.00 17.50 16.00 14.50 -0.50 230 • Purchasing & Warehousing 12.00 0.50 0.00 0.00 0.00 0.00 12.50 3.60 18.00 15.00 15.00 15.00 2.50 Total Finance 34.00 0.50 0.00 0.00 0.00 0.00 34.50 3.50 38.00 36.50 35.00 33.50 2.00 310 • Communications 9.00 0.00 0.00 0.00 0.00 1.75 10.75 0,90 10.75 10.75 10.75 10.75 0.00 Total Communications 9.00 0.00 0.00 0.00 0.00 1.75 10.75 0 10.75 10.75 10.75 10.75 0.00 410 • General Services Admin 5.00 0.00 0.00 0,00 0,00 1.00 6.00 0.00 8,00 6.00 6.00 6.00 0.00 420 • Collection Facilities Mice 17.50 0.00 0.00 0.00 0.00 0.00 17.50 1.00 -18.50 18.50 18.50 18.50 1.00 430 • Plant Maintenance 34,50 0.00 0.00 0.00 0.00 0.00 34.50 4.00 38.50 28.50 28.50 27.50 -6.00 Total General Services 57.00 0.00 0.00 0.00 0.00 1.00 58.00 5.00 63.00 53.00 53.00 52.00 -5.00 51 0 -Human Resources Admin 5.00 0.50 0.75 0.00 0.00 0.00 6.25 0.50 6.75 6.75 6.75 6.50 0.50 520 • Education & Training 4.00 0.00 0.00 0.00 0.00 0.00 4.00 0.00 4.00 4.00 4.00 3.00 0.00 530 -Safety & Emergency Response 4.00 0.00 0.00 0.00 0.50 1.00 5.50 0.00 5.50 5.50 5.00 5.00 0.00 Total Human Resources 13.00 0.50 0.75 0.00 0.50 1.00 15.75 0.50 16.25 16.25 15.75 14.5 0.50 61 O • Technical Services Ad min 3.00 0.00 0.75 0.00 0.00 0.00 3.75 2.25 6.00 5.00 5.00 5.00 1.25 620 • Environmental Compliance & Mon 17.00 0.00 0.00 0.50 0.00 0.00 17.50 4.00 21.50 18.50 18.50 18.50 1.00 630 -Environmental Laboratory 28,00 2.50 0.00 0.00 0.00 0.00 30.50 -0.50 30.00 29.00 29.00 28.00 -1 .50 640 -Source Control 34.00 0.00 0.75 0.00 0.00 0.00 34.75 2.00 36.75 35,75 34.75 33.75 1.00 Total Technical Services 82.00 2.50 1.50 0.50 0.00 0.00 86.50 7.75 94.25 88.25 87.25 85.25 1.75 71 O • Engineering Administration 3.00 0,00 0,00 0,00 0.00 0.00 3.00 0.00 3.00 3.00 3.00 3.00 0.00 720 -Planning & Design Engineering 28.00 0.00 0.75 0.00 0.50 0.00 29.25 2.25 31.50 31.50 31.50 31 .50 2.25 730 -Construction Management 35.00 0,00 0.00 0,00 0.00 0.00 35.00 2.50 37.50 36.50 36.50 36.50 1.50 Total Engineering 66.00 0.00 0.75 0.00 0.50 0.00 67.25 4.75 72.00 71 .00 71.00 71.00 3.75 810 • 0 & M Administration 2.00 0.00 0.00 0.00 0.00 0.00 2.00 0.00 2.00 2.00 2.00 2.00 0,00 820 • 0 & M Process Support 8.00 0.00 0,00 1.00 0.00 0.00 9.00 1.25 10.25 9.25 8.25 8.25 0.25 830 -Plant 1 Operations 36.00 0.00 0.00 0.00 0.00 0.00 36.00 1.00 37.00 35.00 35.00 35.00 -1.00 840 -Plant 2 Operations 42.00 0.00 0.00 0,00 0.00 0.00 42.00 -1.00 41 .00 37.00 37.00 37.00 -5.00 850 -Mechanical Mtce 49.50 0.00 0.00 0.00 0,00 0.00 49.50 1.00 50.50 47.50 46.50 44.50 -2.00 860 -Electrical & Instrumentation Mtce 58.50 0.00 0.00 0.00 0,00 0.00 58.50 0.00 58.50 57.50 56.50 56.50 -1.00 870 • Cogeneration 11.00 0,00 0.00 0,00 0.00 0.00 11.00 2.00 13.00 13.00 13.00 13.00 2.00 880 -Air Quality & Special Projects 8.00 0,00 0.00 0.00 1.00 0.00 9.00 -1.00 8.00 7.00 7.00 7.00 -2.00 Total Operations & Maintenance 215.00 0.00 0.00 1.00 1.00 0.00 217.00 3.25 220.25 208.25 205.25 203.25 -8.75 910 -IT Admin 2.00 0,00 0,00 0,00 0.00 1.00 3.00 1.00 4.00 4.00 4.00 4.00 1.00 920 -IT User Support 6.00 0.00 0,00 0,00 0.00 0.00 6.00 1.00 7.00 8,00 8.00 8.00 2.00 930 -IT Network Support 5.00 0.00 0.00 0.00 0.00 0.00 5.00 0.00 5.00 6.00 6.00 6.00 1,00 940 • IT Programming 6.00 0.00 0,00 0.00 0.00 0.00 6.00 0.00 6.00 7,00 7,00 7.00 1.00 950 -Plant Automation 7.00 0.00 0.00 0.00 0.00 0.00 7.00 1.00 8.00 8.00 8,00 8.00 1.00 Total Information Technology 26.00 0.00 0.00 0.00 0.00 1.00 27.00 3.00 30.00 33.00 33.00 33.00 6.00 Total Staffing -~ .. J 506.00J 3.501 3.001 1.501 2.001 4.75 520.75 28.25 549.00 521.50 515.50 .,. 507.75 0.75 g:lexcel,dtalhr\51 0\sloeves\EMPDIV98-99 " .. ., Performance to 5-Y ear Staffmg Plan 570 ~------------------------------ 560 550 ··-·-. --·-. ----·-----.. • 540 I _/ .-:=.... T -. ..... ·-• , • ... • I ...... ... 530 •.,...., • " ... • .. 520 ...., • .__ FfE Headcount 510 -•~ 5 Year Staffmg Plan 500 -~~-~~----~--~~------i.----~--~-~-~~-------l J A S O N D J F M A M J J A S O N D J F M A M J I FY 97-98 I FY 98-99 FAHR COMMITTEE Meeting Date To Bd. of Dir. 10/21/98 AGENDA REPORT Item Number Itern Number 13 (a) Orange County Sanitation District FROM: Gary Streed, Director of Finance SUBJECT: General Manager Approved Purchases (FAHR98-75) GENERAL MANAGER'S RECOMMENDATION Receive and file initial report of General Manager approved purchases in amounts exceeding $50,000. SUMMARY In May, the FAHR Committee and the Board approved changes to the staff purchasing authority. One of the changes was to increase the dollar threshold before Board authority was required for purchases of goods or services, excluding public works purchases, to $100,000. When approving this change, the Committee asked for periodic reports showing purchases approved by the General Manager for amounts between $50,000 and $100,000. This is the first of those reports. Vendor Name Amount Description/Discussion Sun-Belt Landscape $53,040 Annual contract for landscape maintenance at both plants and pump stations -formal bid process. Power Distributors $67,500 Replacement lighting fixtures in four areas at both plants -formal bid process. IPI Gramm Tech, Inc. $76,875 Software for data warehouse and data integration project, includes $15,000 for annual maintenance. GSA pricing. Section 1 O of Resolution 98-21, the District's Purchasing and Contracts Award Resolution, authorizes the Purchasing/Contracts Manager to purchase items that have "appropriate budgetary approval." During the budget adoption process, the lists of these items were highlighted for the Directors. For these reasons, purchases that fell into these categories are not included in this report. PROJECT/CONTRACT COST SUMMARY N/A H:lwp.dtaVin\210'cranelFAHRIFAHR98\0ct\Backup of FAHR98-75.wbk RIM5ed: 8120198 Page 1 BUDGET IMPACT D This item has been budgeted. D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. ~ Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS None. H:\wp.dtaVin\210'cranelFAHRIFAHR98\0ctlBackup of FAHR98-75.wbk RIMUCI: 8/20/98 Page2 FAHR COMMITTEE Meeting Date To Bd. of Dir. 10/21/98 AGENDA REPORT Item Numbei Item Number 13 (b) Orange County Sanitation District FROM: Gary Streed, Director of Finance SUBJECT: USER FEE DATA BASE REVIEW (FAHR98-76) GENERAL MANAGER'S RECOMMENDATION Receive and file status report on staff's efforts to review the Assessor's data base for under charged and uncharged parcels. SUMMARY At the September Committee meeting the Directors asked staff to evaluate methods to review or audit the Assessors data base to ensure all appropriate user fees were collected as a separate line item on the property tax bill. This is a status report to identify the project and the efforts to date. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. D This item has been budgeted, but there are insufficient funds. [81 This item has not been budgeted. D Not applicable (information item) ADDITIONAL INFORMATION Because the District uses the Assessors data base in a manner and for a purpose for which it was not designed, we sometimes get results that are inaccurate. If there are no square feet of improvement kept in the data base, no user fee is generated; if the property use category does not match the current use, the user fee may be incorrect; and so on. Options to find missing data include contracting with the.Assessors Office, contracting with an assessment review firm, and adding experienced staff. H:\wp.dlaVin\2101cnme\FAHR\FAHR98\0cl\FAHR96-76.doc ReYiMd: 8120196 Page 1 Currently, we do not know the real magnitude of the problem. We do know that no building square footage is shown for approximately 5,000 parcels owned by governmental agencies, while data is available on only 400. We also know of a few industrial/commercial buildings without data, and expect that the actual tenant mix in shopping centers could result in additional user fees beyond those calculated on the average mix. Water use information submitted by firms whose use is below average indicates there must be firms whose use is above average. Staff has contacted two of the assessment review firms that account for the majority of our refunds and adjustments. Both have expressed an interest in reviewing the data base on a contingency basis. Such an arrangement could be beneficial to the District, as there would be no cost if no additional fees were identified. These firms already are familiar with our program and these firms have experience with other agencies and will know where to concentrate their efforts. Some staff costs would be incurred to update the data base, to maintain changes, and to oversee the effort. These in-house costs would also be incurred if we develop a team of additional staff for the effort. Additionally, staff has had reports prepared by the County that show all of the multi- family residential units by address and by Assessor's parcel number. This information was validated against a trade publication and by site visits. Thirdly, reports have been prepared to identify all parcels in the Assessor's data base that show a dollar value for improvements, but no square feet of building. These reports also show address, if known, Assessor's parcel number, and property use code. These reports are currently ceing reviewed by the Assessor's office to eliminate those parcels with improvements that do not inch.Jde sewer use. The next step is for staff to develop a scope of work and a request for proposals for the appropriate services. Additiohal fact-finding and scope-designing meetings will be held with known assessment reduction firms. In this way, staff will prepare a scope of work that is clear, precise, and provides a sound basis to develop a work plan. That scope of work will be returned to the Committee for approval at a future meeting. ALTERNATIVES NIA CEQA FINDINGS NIA ATTACHMENTS None. H:lwp.dlaVin\21 Olcrane\FAHRIFAHR98\0ct\FAHRQ6. 76.doc Revised: 8/20196 Page2 FAHR COMMITTEE Meeting Date 10/21/98 AGENDA REPORT Item Number 13 (c) Orange County Sanitation District FROM: Mike Peterman, Director of Human Resources SUBJECT: ADJUST THE PAY RANGES OF THE ASSISTANT GENERAL MANAGER, THE DIRECTOR OF COMMUNICATIONS, AND THE DIRECTOR OF INFORMATION TECHNOLOGY POSITIONS (FAHR98-77) GENERAL MANAGER'S RECOMMENDATION 1. Adjust the Assistant General Manager's pay range maximum from $135,780 to $149,238. 2. Move the Director of Communication classification from pay range E9 ($51,936 -$83,520) to pay range E17 ($71,379 -$119,101). 3. Move the Director of Information Technology classification from pay range E17 ($71,379-$119,101) to pay range E18 ($80,895- $138,553). SUMMARY For the past two years, staff has been involved in designing a new compensation and classification program known as Broadbanding. At the July 1998 Finance and Human Resources Committee meeting, staff recommended that executive managers should set the example for other groups by broadbanding first. The Committee disagreed and asked for us to revise our proposal. In early October, the General Manager, Assistant General Manager, Director of Human Resources and the Assistant to the General Manager met with the Chairman, Vice Chairman, and past Chairman of the Board to discuss Broadbanding for executive and division management. It was agreed that staff would postpone recommendations on Broadbanding for Executive and Division Managers until after negotiations are concluded with supervisors, professionals, Local 501 Operating Engineers, and the Orange County Employees' Association. However, since there were a few classifications that needed to be addressed immediately, it was suggested that staff return to the FAHR Committee to address the individual classifications rather than Broadbanding the entire group. H:lwp.dlaVin\210'crane'FAHRIFAHR9810cl\FAHR96-77.doc R8\lisecl: 8/20'98 Page 1 To Bd. of Dir. 10/28/98 Item Number Because management assumed that Broadbanding would be implemented back in July, we allowed the Assistant General Manager's (AGM) salary to exceed the top of the salary range by 3% ($4,399/annually). The pay range maximum for the AGM position ($135,780) is currently $3,288 per year less than the highest- level department head pay range maximum ($139,068). It is recommended that the AGM's salary range maximum be raised to $149,238 (see attachment). We also entered into a contract with the Director of Information Technology with a starting salary almost 1 % ($899/annually) above the maximum of the current range, once again assuming that Broadbanding would be in place. To correct the situation, it is recommended that the Director of Information Technology position be reclassified from pay range E17 to pay range E18. Recent salary surveys and publications show that the salaries for Information Technology professionals and managers are rising faster than any other position. This reclassification will move the Director of Information Technology classification in line with the other technical department heads. Over a year ago, the General Manager reorganized the Communications division and elevated the group to a department. Instead of reclassifying the Director of Communications to the department head level, management postponed the reclassification in order to wait until Broadbanding was implemented. All other Department Head positions are classified in pay ranges E17 through E19. The Director of Communication position is classified in a pay range that is 8 levels below the lowest level Department Head pay range and one level below the pay range of one of the Director's subordinates, the Secretary to the Board of Directors. It is recommended that the Director of Communication position be reclassified to the Department Head pay range of E 17, equivalent with the Director of Human Resources. She is currently 4% ($3, 719/annually) over the maximum of her range. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. [g1 Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES H:\wp.dblVin\21 Olcrane\F AHRIFAHR98\0et\FAHR98-TT.doc Reviaed: 8120198 Page2 N/A CEQA FINDINGS NIA ATTACHMENTS H:lwp.dtaVin\210¥:rane\FAHRIFAHR98\0cl\FAHRB8-n.doc Revised: 8120198 Page3 Salary Ranges AGM IT Director Comm Director . . . . . . ' ........ *·. •••••••••••• • • • • • • • • • • • • • • • • = Proposed Range * = Incumbent's Salary -= Current Range ·*···· . . . . . *· .... • • • • • • • • • • $50,000 $70,000 $90,000 $110,000 $130,000 $150,000 ~ ~ C"' i,,,,,,,,,i ~ > FAHR COMMITTEE Meeting Date 10/21/98 AGENDA REPORT Item Number 14 (a) Orange County Sanitation District FROM: Patrick Miles, Director of Information Technology Originator: Robert Thompson, Plant Automation Manager To Bd. of Dir. Item Number SUBJECT: YEAR 2000 DATE CHANGE COMPLIANCE PROJECT {OMTS98-030) GENERAL MANAGER'S RECOMMENDATION Informational item on the District's plans to address the Year 2000 problem. SUMMARY The Year 2000 {Y2K) Date Change Project is required to ensure that the District's internal process controls, embedded systems, and computing systems operate safely, predictably, and satisfactorily for all dates in the Year 2000 and beyond. Industry standard methodology will be used to successfully achieve the following objectives in priority order: 1. PUMP WATER INTO AND OUT OF THE PLANTS • Ensure personnel safety systems are functional and meet OSHA requirements. • Keep wastewater flowing into the treatment plants and through the 120" outfall. 2. TREAT WASTEWATER TO PERMIT LEVELS • Achieve full compliance with discharge quality requirements 3. ENSURE FULL PERMIT COMPLIANCE • Maintain full compliance with all other terms and conditions of permits issued by RWQCB, EPA, and SCAQMD. 4. MAINTAIN DISTRICT BUSINESS PROCESSES • Ensure compliance for non-process related systems including the Financial Information System {FIS), desktop computing systems, security systems, etc. In support of Objective #1, District staff are preparing a risk analysis plan for plant process systems classified by criticality. Critical systems include influent pumping, outfall pumping, electrical generation, instrument air, and water systems. Additionally, staff intend to research, correct {if required), and test all embedded systems {e.g. "smart" transmitters or valves, variable speed electric motor drives, electronic time clocks, sampling equipment, and data and voice networking equipment) which may affect Objectives #1 and #2. To assist in this process, staff has acquired the services of Dr. Gayn Winters, President and technical representative of Bristol Systems, Inc. Revised: 1014198 Page 1 - Dr. Winters chairs the IEEE Working Group for Year 2000 Problems in Embedded Devices and co-chairs the Southern California Software Council's Special Interest Group on the Year 2000. Dr. Winters has 33 years of experience in the computer industry specializing in embedded systems. His expertise in this crucial area will greatly enhance staffs ability to successfully achieve Objectives #1 and #2. Objective #3 involves the effort to ensure that normal permit required laboratory and field testing continues and that operating requirements of the Regional Water Quality Control Board and the Air Quality Management District not directly related to ocean discharge quality requirements are also met. Staff intends to research, correct (if required), and test embedded systems required to carry out this objective. Objective #4 involves the effort to ensure that District business processes continue with minimal disruption. Examples include the Financial Information System (FIS), desktop computing, building mechanical systems (e.g. security and alarm systems) and other non-critical specialty software packages. Given that different staff resources are required for each objective, staff can and will address the objectives in parallel. Objectives #1 and #2 will be prioritized in cases where common resources are required. The purpose of this report is to recommend an increase in the Y2K Project budget from $500,000 to $2,141,500 for FY 1998/1999 only (please reference the attached project cosUstaff FTE summary for further details). Funding for FY 1999/2000 will be requested via the normal budgeting process. PROJECT/CONTRACT COST SUMMARY See the attached spreadsheets. BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. ~ Not applicable (information item) ADDITIONAL INFORMATION Overall Project Approach: To ensure the successful completion of the four project objectives outlined in the summary, a five-step process will be applied uniformly across the District. The steps are: • Awareness and Evaluation • Assessment of Hardware and Software and Associated Risk of Failure Revised: 10/4198 Page2 • Correction of Problems or Work Around Plans Developed for Problems Discovered in Assessment • Testing of the Corrective Action or Work Around Plan • Deployment of the Tested Software/Hardware on Live Systems Embedded systems are considered the most important area to evaluate for each of the four project objectives. Embedded systems are defined as equipment or systems with built in microprocessors. Examples of embedded systems at the District include: "smart" transmitters or valves, variable speed electric motor drives, electronic time clocks, robotic lab equipment, and data and voice networking equipment. District staff are preparing a detailed embedded systems inventory. EQE International, an insurance industry risk analysis firm, was retained in July to work with Operations & Maintenance and Information Technology to identify both internal and external risk factors. The embedded systems inventory will be sorted by Objective and prioritized based on risk factors. A Request for Proposal will be sent to firms with expertise in evaluating embedded systems. The selected vendor will provide a report detailing which embedded systems are Y2K compliant, non-compliant and special. Recommendations for non-compliant or special systems will be detailed; upgrade to firmware version X.X, replace with part #XXXX, or a workaround procedure will be provided (e.g. set date back to 1992). Further, the selected vendor will provide written test procedures for staff to verify embedded system compliance. District staff are well into the process of evaluating its Programmable Logic Controllers (PLC's) and Supervisory Control and Data Acquisition (SCADA) System. These systems appear to be Y2K compliant and will be tested thoroughly. Likewise, other District business processes, while not the priority, will be assessed to ensure Y2K compliance. • The Laboratory is highly automated with robotic testing, computerized sample control, and sample custody issues. It is important for permit compliance that these systems continue to operate normally. • The financial system is heavily dependent on electronic control systems for payroll, fiscal reporting and payment of bills. • The Purchasing / Warehousing functions are increasingly computerized and are critical for the ongoing operation and maintenance to the treatment process. • The Communications department has special graphics development equipment. • The Human Resources department maintains several programs for safety, training record keeping, and employee benefits. • The Technical Services department maintains specialized programming to aid in Source Control and Environmental Monitoring. • The Engineering department maintains electronic records for projects in various stages of completion as well as operating process systems. It is important that this information be safe guarded. Air quality compliance systems will be assessed to ensure permit reporting compliance is maintained. Another aspect of the Y2K Compliance Project is to identify, and prepare for, the effects of external Y2K driven events in order to minimize the risk to public health and District operation. This aspect of the Project is focused primarily on the operation of the treatment process. The methodology for this part of the project includes: Revised: 10/4198 Page3 • Identification of Risk Factors • Creation of Plans and Procedures to Mitigate Identified Risks • Updates to the Integrated Emergency Response Plan (IERP) • Table Top Exercise • Late December 1999 Preparation The most visible external events include the temporary loss of critical utility service, electricity, natural gas, city water, industrial water, and process chemicals. The risk assessment planning also takes into account these outside variables. With the proper contingency planning and preparation in place these risks can be managed to acceptable levels. With this information in hand, Operations and Maintenance will proceed with the risk abatement planning. The same individuals who successfully planned for the El Nino events will be involved in the Y2K preparation and planning. As this planning is completed, the Integrated Emergency Response Plan will be updated. This planning will be of benefit for years to come. The written procedures will assist staff in the event of a county/city wide power failure, telephone outage, or interruptions in water delivery. It is anticipated that preparatory exercises will be conducted in the fall of 1999. Planning will also be put into place to ready the District prior to dates that have been identified as having a higher probability of trouble. Simple steps such as topping off plant chemical and diesel tanks, scheduling extra staff, and managing vacation scheduling will be very low cost and very beneficial in responding to difficulties. Project progress to date: • District-wide Y2K awareness has been achieved for key supervisory and technical staff. • The Y2K steering committee was formed to coordinate interdepartmental activities. • A standardized methodology of assessmenUevaluation, remediation, testing, and commissioning of systems has been adopted District-wide. • Information Technology has created a detailed project implementation plan and schedule. All other District departments are creating their schedules based on the same execution plan and project schedule templates. • A process/permit compliance Risk Assessment by a third party with heavy District staff input is nearly complete. • The District's process control computers and software have been assessed with no major problems found. Identified software patches and no cost upgrades are being done, followed by testing. • The Operations and Maintenance Department, Information Technology and Laboratory are assembling their inventory of embedded systems to be assessed by an independent third party. • Y2K archive has been established. • District-wide task tracking is in place. • The District-wide working plan is in place. • The internal telephone equipment has been upgraded to Y2K compliance. , Revised: 1 Ol-4196 Page4 • Central Generation Engine Control Software and Computer Hardware are being upgraded by the manufacture for Y2K compliance. • Source Control Permitting Program is 75% converted from a non-compliant DOS format to a compliant Windows NT platform. Future project milestones include: • Objective #1 • Objective #2 • Objective #3 • Objective #4 Critical wastewater pumping systems will be Y2K compliant by March 31, 1999. Wastewater treatment systems will be Y2K compliant by September 30, 1999. Non-treatment permit compliance systems will be Y2K compliant by June 30, 1999. Normal District business process systems will be addressed by December 31, 1999. Requirement for additional resources: Bristol Systems, Inc. has been assisting the District in focusing the Y2K project since June 1998. Bristol Systems assisted staff in adopting a standardized methodology, producing a written project plan, maintaining a uniform documentation system, and developing detailed project schedules for tracking. Bristol Systems has also been instrumental in assisting staff to understand the need for, and subsequently help develop an embedded systems inventory. Phase 1 of the consulting contract is nearing completion and has included: Phase 1 (June 1998 -October 1998) • Increase District-wide awareness of the Y2K problem. • Implement a standardized Y2K project methodology and written project plan. • Assist District staff in the creation of detailed and unified project schedule. • Create and maintain a project archive to satisfy due diligence concerns. • Work with District staff to produce an embedded system assessment scope of work and detailed embedded systems inventory. • Coordinate the risk assessment study activities with EQE International and District staff. • Create and maintain the Y2K project task tracking system. • Manage the external requests for Y2K related information by producing an approved standard response letter. • Assist District staff in identifying critical vendors, mailing request for information letters to each vendor, and track and document the responses. Phase 2 (November 1998 -June 1999) of the consulting contract requires Board authorization and includes the following services: • Assist District staff in developing a treatment process risk analysis study. • Assist District staff in selecting and managing an embedded system assessment consultant for critical systems. Revised: 1014198 Pages • Assist District staff in producing compliance testing procedures and testing for computer systems and embedded systems. • Update the written project plan monthly. • Progress and update the unified project schedule. • Maintain a project archive to satisfy due diligence concerns. • Maintain the Y2K project task tracking system. • Manage the external requests for Y2K related information by producing an updated approved standard response letter quarterly. • Assist District staffs in tracking critical vendor requests for information and document all correspondence. • Assist District staff in contingency planning activities. Recommendation for Bristol Systems Consulting Services: Bristol Systems Inc. is the product of a merger between SMS Agoura Systems Incorporated and System Solutions International. These companies have been doing business in Orange County for 24 years collectively. Bristol Systems Inc. maintains offices in Orange and Santa Ana. Their gross revenue last year was approximately $2 million. Current major accounts include IBM, Dyncorp Inc., and Experian Corporation. Dr. Gayn Winters is the assigned technical representative from Bristol Systems. Dr. Winters chairs the IEEE Working Group for Year 2000 Problems in Embedded Devices and co-chairs the Southern California Software Council's Special Interest Group on The Year 2000. These groups specialize in understanding the classification, analysis, debugging, testing, and legal issues related to Year 2000 problems. Dr. Winters has 33 years of experience in the computer industry in computer design, software development and embedded systems. The assigned project manager from Bristol Systems has six years of experience in industrial project management. Prior to selecting Bristol Systems, the Information Technology Department contacted several firms including Lockheed Martin IMS, Focus Software International, Inc, Digital Equipment Corp., Litton Enterprise Solutions, and Bristol Systems Inc. Lockheed Martin IMS and Focus Software International declined to offer project management services due to lack of resources. Digital Equipment Corp. offered services centered on its own equipment, which is of limited help. Litton Enterprise Solutions offered a $40,000/month project management proposal. This proposal was judged too expensive for the services rendered. Bristol Systems offered a very competitively priced, approximately $20,000/month, flexible proposal for comprehensive technical and management services. The proposal, detailed in Phase 1 and Phase 2 above, is structured as a not to exceed (NTE) contract and may be terminated with four weeks notice. ALTERNATIVES Not applicable CEQA FINDINGS Not applicable Revised: 1014198 Page6 ATTACHMENTS Year 2000 Date Change Project-Cost Summary (through 6130199) Year 2000 Date Change Project -Staff FTE Summary (through 6/30/99) Revised: 10/4198 Page7 1 2 3 4 Year 2000 Date Change Project Cost Summary (through 6130199) I PUMP WATER INTO AND OUT OF THE PLANTS I $ 351,000 $ 80,000 Keep wastewater flowing into the treatment plants and through the 120" outfall A. Safety Compliance B. Collection system operation C. Wastewater pumping into the treatment plants D. Pumping effluent into the outfall ITREAT WASTEWATER TO PERMIT LEVELS I 468,000 195,000 Achieve full compliance with discharge quality requirements I ENSURE FULL PERMIT COMPLIANCE I 234,000 54,000 Maintain full compliance with all other terms and conditions of permits issued by RWQCB, EPA, and SCAQMD I I MAINTAIN DISTRICT BUSINESS PROCESSES I 643,500 66,000 A. Financial Information System Testing B. Desktop Computing / Standard Software C. Mechanical Systems D. Security I Telephone E. Specialty Software $ -1$ 431,000 20,000 I 683,000 I 288,000 30,000 I 739,500 * Please note that all numbers are estimates based on the best available information. Specifically, the material cost estimate could change significantly if major hardware issues are uncovered. 1098 FAHR y2k project cost summary.xis 10/13/98 1 2 3 4 1.0 3.0 Year 2000 Date Change Project Staff FTE Summary (through 6130199) 1.5 2.0 0.5 2.0 1.0 0.5 1.0 2.0 3.0 I$ 4.0 2.0 5.5 351,000 468,000 234,000 643,500 October 21, 1998 None Scheduled 1997-98 Comprehensive Annual Financial Report 1998-99 First Quarter Financial & Operational Report Human Resources Policy Manual and Safety Manual Update General Liability Insurance Program Multi-Year Renewal Proposal Connection Fee Rate Structure Contractual Services for User Fee Data base Approve Memorandum of Understanding with S&PMT None Scheduled General Manager's Quarterly Purchasing Report 1998-99 Second Quarter Financial & Operational Report Quarterly Investment Management Report 1999-00 Budget Assumptions & Fiscal Policies CSDOC e P.O. 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