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Home My WebLink About2006-06-14MINUTES OF THE REGULAR JOINT MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE& STEERING COMMITTEE Orange County Sanitation District Wednesday, June 14, 2006, 5:00 p.m. A joint meeting of the Finance, Administration and Human ResOLrces Committee and the Steering Committee of the Orange County Sanitation District was held on June 14, 2006, at 5:00 p.m., in the Sanitation District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: FAHR COMMITTEE MEMBERS: DIRECTORS PRESENT: Darryl Miller, Chair Mike Duvall, Vice Chair Bill Dalton Rich Freschi Jim Ferryman, Vice Board Chair Phil Luebben Joy Neugebauer James W. Silva Mark Waldman OMTS COMMITTEE MEMBERS DIRECTORS PRESENT Carolyn Cavecche, Chair Don Bankhead, Vice Chair Sukhee Kang Dave Shawver Dave Sullivan DIRECTORS ABSENT: Steve Anderson, Board Chair STAFF PRESENT: Jim Ruth, Interim General Manager Nick Arhontes, Director of Regional Assets and Services Bob Ghirelli, Director of Technical Services Jim Herberg, Director of Operations and Maintenance Patrick Miles, Director of Information Technology Lorenzo Tyner, Director of Finance Jeff Reed, Human Resources Manager Mike White, Controller Bret Colson, Public Information Manager Lilia Kovac, Committee Secretary OTHERS PRESENT: Brad Hagin, General Counsel Don McLean, Driver Alliant Juanita Skillman Ryal Wheeler Norbert Gaia FILED (2) APPOINTMENT OF CHAIR PRO TEM IN THE OFFICE OF THE SECRETAB~r1 ORANGE Crlll T V n • .. ..-m nt,J DIST · No appointment was necessary. JUN 28 2006 (3) PUBLIC COMMENTS -_L..:?:,__:_r:,_~ IY L There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Chair Miller had no report. Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting June 14, 2006 Page 2 (5) REPORT OF THE GENERAL MANAGER Jim Ruth, Interim General Manager, had no report. (6) REPORT OF DIRECTOR OF FINANCE/TREASURER Director of Finance, Lorenzo Tyner, had no report (7) REPORT OF DIRECTOR OF HUMAN RESOURCESPUBLIC INFORMATION OFFICE Jeff Reed, Human Resources Manager, had no report. (8) REPORT OF GENERAL COUNSEL Brad Hogin, General Counsel, had no report. (9) CONSENT CALENDAR ITEMS a. Approve minutes of the May 10, 2006 and May 18, 2006 joint meetings of the Finance, Administration and Human Resources Committee and Steering Committee regular meeting, and Benefits Workshop special meeting. b. FAHR06-43 Receive and file Employment Status Report as of May 22, 2006. c. FAHR06-44 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. d. FAHR06-45 Recommend to the Board of Directors to adopt Resolution No . 06-_, amending Resolution No. OCSD 98-33, amending Human Resources Policies and Procedures Manual. Motion: It was moved, seconded and duly carried to approve the recommended action for the item specified as 9(a) through 9(d) under consent calendar. END OF CONSENT CALENDAR (10) ACTION ITEMS a. FAHR06-46 Approve FY 2006/07 and 2007/08 Proposed Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY 200&07 and 2007-08, as follows: Net Operations, Maintenance & Working Capital Worker's Compensation Self Insurance General Liability and Property Self.Insurance Net Capital Improvement Program Debt/COP Service Other Requirements Total 2006-07 $129,054,210 $526,200 $1,766,100 $266,088,000 $54,410,000 $4,499,800 $456,344,310 2007-08 $135,602,130 $559,400 $2,055,200 $338,818,000 $65,462,000 $2,645,300 $545,142,030 Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting June 14, 2006 Page 3 Motion: Lorenzo Tyner, Director of Finance, presented the highlights of the District's two-year budget for approval based on the recommended CIP cost reductions and newly-adopted rate increase approved at the May Board of Directors' meeting. It was moved, seconded and duly carried torecommend approval to the Board of Directors b. FAHR06-47 Recommend to the Board of Directors to renew the District's Boiler & MOTION: Machinery Insurance Program for the period July 1, 2006 to June 30, 2007, in an amount not to exceed $25,387. Mike White, Controller, introduced Don McLean of Driver Alliant, who briefly presented the insurance program for the District's boiler and machinery. Concern was expressed by the Directors on the timing of this proposal, and was requested that these proposals be submitted to the FAHR committee for approval in May of future years, so that time is allowed to review or seek more competitive bids prior to recommending to the full Board for approval. It was moved, seconded and duly carried to recommend approval to the Board of Directors. c. FAHR06-48 Recommend to the Board of Directors to renew the District's Excess Workers' Compensation Insurance for the period July 1, 2006 through June 30, 2007, in an amount to be determined at the June 28, 2006 Board of Directors' meeting. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. d. FAHR06-49 Recommend to the Board of Directors to renew the District's All-Risk Property and Flood Insurance Program for the period July1, 2006 through June 30, 2007, in an amount not to exceed $777,833. MOTION: It was moved, seconded and duly carried to recommend approvalto the Board of Directors. e. FAHR06-50 Recommend to the Board of Directors to renew the District's Excess General Liability Insurance Program for the period July1, 2006 through June 30, 2007, in an amount to be determined. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. ; t i ., Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting June 14, 2006 Page4 (11) INFORMATIONAL ITEMS There were none. (12) CLOSED SESSION There was no closed session. (13) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT Chair Miller requested that a p-esentation of the insurance selection process be given at the July FAHR Committee meeting. (15) CONSIDERATION OF UPCOMING MEETINGS The next regular FAHR Committee meeting is scheduled for July 12, 2006, at 5:00 p. m. (16) ADJOURNMENT The Chair declared the meeting adjourned at 6:17 p.m. Submitted by: .~~~ Lilia Kovac Committee Secretary H:\dept\hr\Public Affairs\320\BS\Minutes\061406 DRAFT FAHR Minutes.doc ROLL CALL JOINT FINANCE, ADMINISTRATION AND HUMAN RESOURCES AND STEERING COMMITTEES Meeting Date: June 14, 2006 COMMITTEE MEMBERS Darryl Miller (Chair) Mike Duvall (Vice Chair) Bill Dalton Richard Freschi Phil Luebben Joy Neugebauer James W. Silva Mark Waldman Steve Anderson (Board Chair) Jim Ferryman (Board Vice Chair) OMTS Committee: Carolyn Cavecche, Chair Don Bankhead, Vice Chair Sukhee Kang Dave Shawver OTHERS Brad Ho in, General Counsel STAFF Jim Ruth, Interim General Manager Bob Ghirelli, Director of Technical Services Time: 5:00 p.m. Adjourn: Lorenzo Tyner, Director of Finance/Treasurer David Ludwin, Director of Engineering Jim Herberg, Director of Operations & Mgmt. Lisa Tomko, Director of Human Resources Patrick Miles, Director of Information Technology Nick Arhontes, Dir. of Regional Assets & Svcs. Mike White, Controller Lilia Kovac, Committee Secretary Jeff Reed, Human Resources Manager Paul Loehr, Human Resources Supervisor c: Lenora Crane AGENDA REGULAR JOINT MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE & STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, JUNE 14, 2006, AT 5:00 P.M. (1) ROLL CALL ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California 92708 www.ocsd.com (2) APPOINTMENT OF CHAIR PRO TEM, IF NECESSARY (3) PUBLIC COMMENTS (4) REPORT OF COMMITTEE CHAIR (5) REPORT OF GENERAL MANAGER (6) REPORT OF DIRECTOR OF FINANCE (7) REPORT OF DIRECTOR OF HUMAN RESOURCES/ PUBLIC INFORMATION OFFICE (8) REPORT OF GENERAL COUNSEL (9 ) CONSENT CALENDAR ITEMS Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. Approve minutes of the May 10, 2006 and May 18, 2006 joint meetings of the Finance, Administration and Human Resources Committee and Steering Committee regular meeting, and Benefits Workshop special meeting. Book Page 1 June 14, 2006 Page2 b. FAHR06-43 Receive and file Employment Status Report as of May 22, 2006.Book Page 12 c. FAHR06-44 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. Book Page 16 d. FAHR06-45 Recommend to the Board of Directors to adopt Resolution No. 06-_, amending Resolution No. OCSD 98-33, amending Human Resources Policies and Procedures Manual. Book Page 18 END OF CONSENT CALENDAR f. Consideration of items deleted from Consent Calendar, if any. (10) ACTION ITEMS a. FAHR06-46 Recommend to the Board of Directors to approve FY 2006/07 and 2007/08 Proposed Material, Supplies & Services Operating and Maintenance Budget. BookPage32 (Lorenzo Tyner -30 minutes) b. FAHR06-47 Recommend to the Board of Directors to renew the District's Boiler & Machinery Insurance Program for the period July 1, 2006 to June 30, 2007, in an amount not to exceed $25,387. Book Page 34 (Mike White - 5 minutes) c. FAHR06-48 Recommend to the Board of Directors to renew the District's Excess Workers' Compensation Insurance for the period July 1, 2006 through June 30, 2007, in an amount to be determined at the June 14, 2006 FAHR meeting. Book Page 36 (Mike White - 5 minutes) d. FAHR06-49 Recommend to the Board of Directors to renew the District's All-Risk Property and Flood Insurance Program for the period July 1, 2006 through June 30, 2007, in an amount not to exceed $777,833. Book Page 39 (Mike White - 5 minutes) e. FAHR06-50 Recommend to the Board of Directors to renew the District's Excess General Liability Insurance Program for the period July 1, 2006 through June 30, 2007, in an amount to be determined.Book Page 42 (Mike White - 5 minutes) H:\dept\agenda\FAHR\FAHR2006\0606\03.061406 FAHR Agenda.doc Book Page 2 June 14, 2006 Page3 (12) CLOSED SESSION t During the course of conducting the business set forth on this ~genda as a regular meeting of the Committee, ) j the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, \ l pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, l l 54957 or 54957.6, as noted. \ i i I : l Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) i l employee actions or negotiations with employee representatives; or which are exempt from public disclosure j 'l under the California Public Records Act, may be reviewed by the Committee during a permitted closed session i 1 and are not available for public inspection. At such time as final actions are taken by the Committee on any of \ l these subjects, the minutes will reflect all required disclosures of information. 1 i ;' \o • ••n• ·••n•-•nn u n•••• •••---, ••H•H-.. • .. •••••n •n••• • •••n ••••••••n•••••••n.,,,, .. ,, .. ,,,ou ,, ,...,, .. ,, ... ,on • .. ••••~••Mooa , n·, .,_,, ••nn,,, Hh•-·n••--•uHHn-o•H , , ... ,_, ........... ••••• .. ·•·• .. ••••• .................. ••••••nHo•Hoonno•o-( a. Convene in closed session. b. Reconvene in regular session. c. Consideration of action, if any, on m~tters considered in closed session. (13) OTHER BU SINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (15) FUT URE MEETING DATES The Finance, Administration and Human Resources Committee Benefits Workshop Special Meeting is scheduled for Thursday, June 15, 2006, at 5:00 p.m.; and the next regular FAHR Committee meeting is scheduled for July 12, 2006, at 5 p.m. (16) ADJOURNMENT H:\dept\agenda\FAHR\FAHR2006\0606\03.061406 FAHR Agenda.doc BookPage3 June 14, 2006 Page4 Agenda Posting: 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. Items Not Posted: 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 because there is a need to take immediate action, which need came to the attention of the Committee subsequent to the posting of 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: Any member of the public may address the Finance, Administration and Human Resources Committee on specific agenda items or matters of general interest. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three 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). Consent Calendar: All matters placed on the consent calendar are considered as not requiring discussion or further explanation, and unless a particular item is requested to be removed from the consent calendar by a Director of staff member, 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. The Committee Chair will determine if any items are to be deleted from the consent calendar. Items Continued: Items may be continued from this meeting without further notice to a Committee meeting held within five (5) days of this meeting per Government Code Section 54954.2(b)(3). Meeting· Ad journment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955 (posted within 24 hours). Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Board Secretary's office at (714) 593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Notice to Committee Members: For any questions on the agenda or to place any items on the agenda, Committee members should contact the Committee Chair or Secretary ten days in advance of the Committee meeting. Committee Chair: Committee Secretary: Interim General Manager: Director of Finance: Director of Human Resources: And Public Information Office Darryl Miller Lilia Kovac Jim Ruth Lorenzo Tyner Lisa Tomko (949) 453-5300 (714) 593-7124 lkovac@ocsd.com (714) 593-7110 jruth@ocsd.com (714) 593-7550 ltyner@ocsd.com (714) 593-7145 ltomko@ocsd.com H:\dept\agenda\F AHR\FAHR2006\0606\03.061406 FAHR Agenda.doc Book Page4 MINUTES OF THE REGULAR JOINT MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE & STEERING COMMITTEE Orange County Sanitation District Wednesday, May 10, 2006, 5:00 p.m. A joint meeting of the Finance, Administration and Human Resources Committee and the Steering Committee of the Orange County Sanitation District was held on May 10, 2006, at 5:00 p.m., in the Sanitation District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: FAHR COMMITTEE MEMBERS: DIRECTORS PRESENT: Darryl Miller, Chair Mike Duvall, Vice Chair Bill Dalton Bob Fauteux Jim Ferryman, Vice Board Chair Phil Luebben Joy Neugebauer James W. Silva Mark Waldman DIRECTORS ABSENT: Steve Anderson, Board Chair STAFF PRESENT: Jim Ruth, Interim General Manager Lisa Tomko, Director of Human Resources Lorenzo Tyner, Director of Finance Marc Dubois, Contracts & Purchasing Manager Jeff Reed, Human Resources Manager Mike White, Controller Rich Spencer, Human Resources Supervisor Lilia Kovac, Committee Secretary OTHERS PRESENT: Brad Hogin, General Counsel Bret Colson Tom Gaffney, Bartle Wells & Assoc. Don Hughes Norbert Gaia Juanita Skillman (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Chair Miller reported that he, Lorenzo Tyner and Mike White had met with Mr. Lockhart of Revenue Enhancement Company, who had approached the last committee meeting to address various issues. Chair Miller and Director Luebben met with Mr. Shirish Patel of Lance, Soll & Lunghard, LLP, CPAs , the internal auditors, to provide direction for their auditing efforts. Book Page 6 Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting April 12, 2006 Page2 (5) REPORT OF THE GENERAL MANAGER Jim Ruth, Interim General Manager, had no report. (6) REPORT OF DIRECTOR OF FINANCE/TREASURER Director of Finance, Lorenzo Tyner, had no report (7) REPORT OF DIRECTOR OF HUMAN RESOURCES/PUBLIC INFORMATION OFFICE Lisa Tomko, Director of Human Resources, had no report. (8) REPORT OF GENERAL COUNSEL Brad Hogin, General Counsel, had no report. (9) CONSENT CALENDAR ITEMS a. Approve minutes of the April 12, and April 19, 2006, Finance, Administration and Human Resources Committee meetings. b. FAHR06-33 Receive and file Employment Status Report as of April 20, 2006. c. FAHR06-34 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. d. FAHR06-35 Recommend to the Board of Directors to receive and file report of General Manager approved purchases in amounts exceeding $50,000 in accordance with Board purchasing policies. e. FAHR06-36 Recommend to the Board of Directors to receive and file the FY 2005-06 Quarterly Financial Management Report for the period ended March 31, 2006. f. FAHR06-37 Recommend to the Board of Directors to approve extension of the commercial lease with Nautical Enterprises, Inc., dba H & S Yacht Sales from the original expiration date of May 31, 2006, to the extended expiration date of December 31, 2007. g. FAHR06-38 Recommend to the Board of Directors to approve Adopt Resolution No. Motion: OCSD 06-_, Establishing a Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and Meeting Attendance and Compensation; and Repealing Resolution No. OCSD 06-09. It was moved, seconded and duly carried to approve the recommended action for the item specified as 9(a) through 9(g) under consent calendar. END OF CONSENT CALENDAR Book Page 7 Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting April 12, 2006 Page3 (10) ACTION ITEMS a. FAHR06-39 Recommend to the Board of Directors to approve the Second Amended and Restated Memorandum of Understanding Agreement re: Additional Retiree Benefit Account with the Orange County Employees Retirement System. Motion: Lisa Tomko, Director of Human Resources, presented the proposed amended and restated MOU agreement re Additional Retiree Benefit Account. After a brief discussion, General Counsel Brad Hogin, suggested that due to the direction of discussion on the subject, that this subject would best be covered in closed session. It was moved, seconded and duly carried to move this item to the closed session for a conference with the District's labor negotiators on the subject of retiree medical benefits. General Counsel, Brad Hogin, announced that the Committee would convene in closed session pursuant to Government Code Section 54957 .6 to meet with its labor negotiators Lisa Tomko, Jeff Reed, and Rich Spencer regarding retiree medical benefits. Mr. Hogin further announced that the discussion would cover benefits for employees represented by the Orange County Employees Association, the International Union of Operating Engineers, Local 501, and the Supervisory Professional Management Team. (11) INFORMATIONAL ITEMS a. FAHR06-40 FY 2006/07 and 2007/08 Budget Development Lorenzo Tyner briefly presented the highlights and updates to the proposed budget scheduled to be proposed to the Board of Directors for adoption at the June 28, 2006 meeting. b. FAHR06-41 Contracts Insurance Indemnification Marc Dubois, Contracts and Purchasing Manager, briefly reviewed the current requirements for all service providers to the Sanitation District as adopted based on recommendations by the insurance broker and General Counsel, that are now outdated. Directors requested a future report on different "what if' scenarios with the Sanitation District's current insurance requirements and possible exposures to update the requirements. c. FAHR06-42 Rate Study Validation Lorenzo Tyner, Director of Finance, introduced Mr. Tom Gaffney of Bartle Wells, who was contracted to study the rate model. While Tom Gaffney recommended that the tax credit be eliminated, as most comparable agencies do not offer this structure, a committee previously directed Staff to continue with the Sanitation District's rate structure. This item will be reviewed again over the course of the year. Book Page 8 MINUTES OF THE JOINT MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE & STEERING COMMITTEE SPECIAL MEETING -BENEFITS WORKSHOP Orange County Sanitation District Wednesday, May 18, 2006, 5:00 p.m. A joint meeting of the Finance, Administration and Human Resources Committee and the Steering Committee of the Orange County Sanitation District was held on May 18, 2006, at 5:00 p.m., in the Sanitation District's Administrative Office. (2) The roll was called and a quorum declared present, as follows: FAHR COMMITTEE MEMBERS: DIRECTORS PRESENT: Darryl Miller, Chair Mike Duvall, Vice Chair Bill Dalton Rich Freschi Phil Luebben Joy Neugebauer Mark Waldman Steve Anderson, Board Chair DIRECTORS ABSENT: Jim Ferryman, Vice Board Chair James W. Silva STAFF PRESENT: Jim Ruth, Interim General Manager Lisa Tomko, Director of Human Resources Lorenzo Tyner, Director of Finance Jeff Reed, Human Resources Manager Rich Spencer, Human Resources Supervisor Lilia Kovac, Committee Secretary OTHERS PRESENT: Brad Hogin, General Counsel Norbert Gaia Juanita Skillman Ryal Wheeler (3) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (4) PUBLIC COMMENTS There were no public comments. (5) OCSD BENEFITS PROGRAM OVERVIEW Lisa Tomko, Director of Human Resources, presented the District's employee demographics and an overview of the current insurance and retirement benefits program with its associated costs to both the District and to the employees. Ms. Tomko and Richard Spencer, Human Resources Supervisor, also reviewed possible cost reductions recommendations based on market trends for consideration by the Committee to mitigate other cost increases. Book Page 10 FAHR COMMITTEE Meeting Date 06/14/06 AGENDA REPORT Item Number FAHR06-43 Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Richard Spencer, Human Resources Supervisor SUBJECT: EMPLOYMENT STATUS REPORT AS OF MAY 22, 2006 GENERAL MANAGER'S RECOMMENDATION Receive and file the Employment Status Report. SUMMARY The number of full-time equivalent (FTE) employees at OCSD is 593.50; actual headcount is 601. PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY N/A 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. IZ] Not applicable (information item) ADDITIONAL INFORMATION NEW HIRES: 4 Total To Bel. of Dir. Item Number Job Title Division Business Need Associate Engineer Ill Process Engineering 2 -Important Electrical Tech II Electrical/Instrumentation Maintenance 1 -Critical Electrical Tech II Electrical/Instrumentation Maintenance 1 -Critical H:ldept\agenda\FAHRIFAHR2006\0606\06.06-43,Employment Status.doc Page 1 Book Page 12 SEPARATIONS: 2 Total Job Title Division Reason Senior Construction Inspector Construction Management Resignation Senior Plant Operator Operations -Plant 2 Resignation PROMOTIONS: 1 Total Name Former Job Title Current Job Title Division William F. Pierce Senior Plant Operator Operations Supervisor Operations -Plant 2 RECRUITMENT STATUS: All current recruitments have been reviewed and approved by the General Manager through the Position Analysis process. RECRUITMENTS GREATER THAN 90 DAYS: 2 Total Job Title Date Posted Sr. Contracts 12/22/05 Administrator Engineer-2/6/06 Mechanical ALTERNATIVES NIA CEQA FINDINGS N/A ATTACHMENTS Days Division Open Contracts, Purchasing, & 151 Materials Management 105 Processing Engineering 1. May 22, 2006 Employment Status Report Status Interviews are currently being conducted. This position is a critical component of OCSD's strategic plan to minimize change orders and maximize oversight and integrity. Very hard to find skill set. 60 day written exam development. Internal interviews are complete. Currently posted external. 2. FY 2005/06 Staffing Report (year to date performance compared to budgeted FTE's) H:\dept\agenda\FAHRIFAHR2006\0606\06.06-43.Employment Status.doc Page 2 Book Page 13 tb 0 0 ~ 1 (I) ..... 4=. ~------~~ ~~----- DIV 110 General Management Ad min General Management Totals 210 Finance Administration 220 Accounting 230 Contracts, Purch. & Materials Mgmt Finance Totals 310 Public Affairs Administration 320 Board Services 330 Public Information Office Public Affairs Totals 410 Regional Assets & Services Admin 420 Collection Facilities O&M 430 Facilities Maintenance Svcs Regional Assets & Services Totals 510 Human Resources Admin 520 Employee Development/Training 530 Safety & Health 540 Workforce Support Services 550 Employee & Labor Relations Human Resources Totals 610 Technical Services Admin 620 Environmental Assessment 630 Environmental Sciences Lab 640 Source Control 660 Environmental Compliance Svcs Technical Services Totals 710 Engineering Admin 740 Planning 750 Project Management Office 760 Engineering & Construction Engineering Totals 810 O&M Administration B20 O&M Process Engineering B30 Operations, Plant No. 1 840 Operations, Plant No. 2 850 Mech Maint & Power Production 860 Electrical & Instrumentation Maint Operations & Maintenance Totals 910 IT Administration 930 IT Customer & Network Support 940 IT Programming & Database Sys 950 IT Process Controls Integration Information Technology Totals GRAND TOTAL FTEs REG 2.00 2.00 2.00 20.00 27.00 49.00 2.00 5.00 7.00 14.00 8.00 24.00 30.00 62.00 2.00 3.00 8.00 8.00 4.00 25.00 4.00 15.00 36.00 39.00 19.00 113.00 3.00 16.00 15.00 64.00 98.00 5.00 14.00 42.00 46.50 58.00 54.00 219.50 3.00 17.00 12.00 13.00 45.00 627.50 AUTHORIZED FTE 0.50 0.75 "TOTAL --2.00 - -2.00 --2.00 -. 20.00 0.50 -27.50 0.50 -49.50 -. 2.00 0.50 -5.50 --7.00 0.50 -14.50 - -8.00 . . 24.00 -. 30.00 - -62.00 1.00 -3.00 . -3.00 -. 8.00 9.50 -17.50 0.50 -4.50 11.00 . 36.00 --4.00 -. 15.00 1.00 -37.00 . . 39.00 -. 19.00 1.00 . 114.00 . . 3.00 . -16.00 -0.75 15.75 . . 64.00 -0.75 98.75 . . 5.00 0.50 . 14.50 0.50 0.75 43.25 -. 46.50 0.50 -58.50 0.50 -54.50 2.00 0.75 222.25 . . 3.00 --17.00 --12.00 --13.00 - -45.00 15.00 1.50 AUTHORIZED FTE = 644.00 ACTUAL FTE Recruitments Vacancies REG 0.50 0.75 LOA TOTAL 2.00 ---2.00 -- 2.00 ---2.00 -- 2.00 ---2.00 -- 14.00 --2,00 16.00 2.00 4.00 25.00 0.50 --25.50 2.00 2.00 41.00 0.50 . 2.00 43.50 4.00 6.00 . -----2.00 5.00 0.50 --5.50 -- 7.00 ---7.00 -- 12.00 0.50 --12.50 -2.00 7.00 -. -7,00 1.00 1.00 22.00 --1.00 2300 -1.00 26.00 -. . 26.00 2.00 4.00 55.00 - -1.00 56.00 3.00 6.00 2.00 1.00 --3.00 -- 3.00 ---3.00 . . 8.00 . -. 8.00 . . 5,00 5.00 --10.00 0.50 7.50 4.00 0,50 --4.50 -- 22.00 6.50 . . 28.50 0.50 7.50 3.00 . . . 3.00 1 00 1.00 15.00 . . . 15.00 . 33.00 2,00 --35.00 2.00 2.00 39.00 --. 39.00 -- 18.00 . -1.00 19.00 -- 108.00 2.00 -1.00 111.00 3.00 3.00 2.00 -. -2.00 . 1.00 16.00 ---16.00 . - 14.00 . 0.75 . 14.75 1.00 57.00 -. 1.00 58.00 . 6.00 89.00 . 0.75 1.00 90.75 . 8.00 4.00 -. -4.00 -1.00 11.00 0.50 -. 11.50 2.00 3.00 42.00 0.50 0.75 -43.25 -- 43.00 0.50 . -43.50 1 00 3.00 54.00 0.50 . 3.00 57.50 1 00 1.00 47.00 0,50 -. 47.50 2.00 7.00 201.00 2.50 0.75 3.00 207.25 6.00 15.00 3.00 ---3.00 -- 15.00 -. 1.00 16.00 1 00 1.00 11 00 . -.. 11.00 -1 DO 12.00 ---12.00 -1.00 41.00 --1.00 42.00 1.00 3.00 571.00 12.00 1.50 9.00 ACTUAL FTE + Recruitments + Vacancies (less recruitments) 593.50 17.50 33.00 DJ 0 0 :ii;- ~ CQ CD -.a. u, 700.00 -• • ---. JUL* SEP Authorized FTE 644.00 644.00 Actual FTE 606.00 597.50 Difference** 38.00 46.50 Recruitments 20.00 36.50 Vacancies 18.00 10.00 • Authorized FTE as of July; actual FTE as of June **Difference = Recruitments + Vacancies STAFFING REPORT • • • • • • • • • • • • • • • • OCT NOV DEC FEB MAR APR MAY JUN 644.00 644.00 644.00 644.00 644.00 644.00 644.00 644.00 595.50 595.50 598.50 601.00 598.50 596.50 591.50 593.50 48.50 48.50 45.50 43.00 45.50 47.50 52.50 50.50 38.50 38.50 36.50 16.50 24.00 21.00 22.00 17.50 10.00 10.00 9.00 26.50 21.50 26.50 30.50 33.00 I -+--Authorized FTE ----Actual FTE I FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: James Matte, Safety & Health Supervisor Meeting Date To Bel. of Dir. 06/14/06 Item Number Item Number FAHR06-44 SUBJECT: OSHA INCIDENCE RATES AND WORKERS' COMPENSATION CLAIMS AND COSTS REPORT GENERAL MANAGER'S RECOMMENDATION Receive and file the OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. SUMMARY The Safety and Health Division tracks OSHA Incidence Rates for DART<1> Cases (DART Incidence Rate) and Total Accidents (Total Injury Frequency Rate) and the District's Workers' Compensation Claims and Costs. The data for January-March 2006 are shown in the table below: OCSD DART Cases OCSD DART Rate'.::' OSHA Recordable Accidents District OCSD Total Injury Frequency Rate'"' NOTES: (1) Days Away, Restricted or Transfer (2) Industry Average for DART is 2.80 (3) Industry Average for TIFR is 6.00 lniuries January- April 2006 1 0.52 5 2.58 April 2006 Data 0 0.00 1 2.08 The one recordable injury for this reporting period is as follows: Change (March to April) 0 0.00 1 -2.08 • On April 20, a Senior Scientist sustained right arm tendonitis from repetitive use of a mouse. This injury is classified as an OMT case. Revised: 06/04/03 Page 1 Book Page 16 Claims and Costs The Division also tracks the District's Workers' Compensation Claims and Costs. Information regarding OCSD workers' compensation claims is presented below. January -April 2006 OCSD Workers' Compensation Claim Count (report period) 4 OCSD Workers' Compensation Claim Cost (report period) $7,640 Total Open Claims 28 Total OCSD Workers' $1,804,504 Compensation Claim Cost Closed Cases No closed cases for this reporting period. PRIOR COMMITTEE/BOARD ACTIONS NIA PROJECT/CONTRACT COST SUMMARY NIA BUDGET IMPACT D This item has been budgeted. (Line item: ) April 2006 Data 3 $6,840 D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. 1Z! Not applicable (information item) ADDITIONAL INFORMATION The reporting period ends April 30. ALTERNATIVES NIA CEQA FINDINGS NIA ATTACHMENTS N/A Revised: 06/04/03 Book Page 17 Change 2 $6,040 Page2 FAHR COM-MITIEE AGENDA REPORT Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Paul Loehr, Human Resources Supervisor Meeting Date To Bel. of Dir. 06/14/06 06/28/06 Item Number Item Number FAHR06-45 SUBJECT: CHANGES AND ADDITIONS TO HUMAN RESOURCES POLICIES AND PROCEDURES MANUAL AS AUTHORIZED BY RESOLUTION 98-33. GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 06-XX, amending Resolution No. OCSD 98-33, amending the Human Resources Policies and Procedures Manual. SUMMARY Policy 8150.00 (Recruitment and Selection) is being updated with focus placed on the Interview Process and Employment Offers sections. The recommended changes listed in the table below are intended to streamline the recruitment process, expedite staffing placement, reduce interview panel costs, reinforce process fairness and consistency, and establish Department Head hiring authority. Policy Number and Subject Summary of Policy Changes • Reduce the number of interview panel members from five (5) to three (3). • Separate the role of Human Resources representatives from active panel members to B150.00, Recruitment and Selection facilitators, consultants, and process monitors. • Provide a process that places the final selection decision with the Department Head (or designee). • Outline the process for salary placement of selected candidates. PRIOR COMMITTEE/BOARD ACTIONS • Human Resources Policies and Procedures Manual revisions were presented at the April 2006 FAHR Committee and Board of Directors meetings. PROJECT/CONTRACT COST SUMMARY N/A H:ldeptlagenda\FAHRIFAHR2006\0606\06,06--45.HR Policy Procedure Recru~ment doc Page 1 Book Page 18 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. IZ! Not applicable (information item) ADDITIONAL INFORMATION Policy changes are provided in a format; whereby, new language is highlighted and deleted language is struck. Aside from the changes denoted in the summary section of this report, policy B150 also includes minor language revisions for consistency and clarification of policy definitions/procedures. Changes and additions to the Human Resources Policies and Procedures Manual are done on a quarterly basis. The next quarterly update is tentatively scheduled for September 2006. ALTERNATIVES NIA CEQA FINDINGS N/A ATTACHMENTS 1. 8150.00 (Recruitment and Selection) 2. Resolution No. OCSD 06-XX H:ldept\agenda\FAHRIFAHR2006\0606\06.06-45.HR Policy Procedure Recruament.doc Page2 Book Page 19 beginning with the effective date of the reassignment or lateral transfer. This period provides an opportunity for both the employee and OCSD management to assess, over a substantial period of time, whether or not the decision was appropriate. 3.8 Relative is any person related by one of the following familial relationships to any employee at OCSD: spouse, mother, father, brother, sister, child, step child, step parent, grandmother, grandfather, grandchild, cousin, aunt, uncle, mother-in-law, father-in-law, brother-in-law or sister-in-law. 4.0 POLICY 4.1 OCSD is an Equal Opportunity Employer (EOE). OCSD does not discriminate on the basis of race, religion, color, national origin, disability, pregnancy, martial status, age, gender, sexual orientation, or participation in any protected class/activity. 4.2 It is OCSD's policy to provide nondiscriminatory, lawful, and consistent guidelines and procedures to all recruitment processes, whether internal or open. 5.0 PROCEDURE 5.1 PERSONNEL REQUISITION 5.1 .1 A personnel requisition is the first step for the Department Head (er designee) hiring manager/supervisor to communicate staffing needs to the Human Resources Department. If the recruitment requires testing (hands-on, written, essay, etc.) as part of the recruitment process, the testing methods must be reviewed for validity and reliability by the Human Resources Department prior to the initiation of a personnel requisition. 5.1.2 The Department Head (or designee) hiring manager/supervisor completes the personnel requisition and routes for the required receives the appropriate signatures required before sending it to the Human Resources Department. 5.1.3 The Human Resources representative recruiter reviews the requisition to make sure the qualifications are appropriate for the position. If changes are necessary, the Human Resources representative will work with the appropriate Department Head (or designee) manager/supervisor. 5.2 EMPLOYMENT OPPORTUNITY BULLETINS/POSTINGS 5.2.1 The Human Resources representative recruiter prepares the employment opportunity bulletin, also known as a posting. Each posting will include the following information: • Wage range • Department • Brief job description • Required qualifications • Desired qualifications • Posting/closing dates • Procedure for applying • Brief benefits overview 5.2.2 The Human Res.ources representative recruiter provides the draft posting to the Department Head (or des1gnee) A-il=fng manager/supervisor for approval. Page 2 of 11 Book Page 21 5.2.3 Upon approval, all GtAeF job postings are shall be advertised as internal recruitments for ten business days, unless an open recruitment is authorized by the Director of Human Resources, or designee. Upon approval, All job postings for Student Intern and Executive Management positions may be advertised as an open recruitment (internal and el<terAaij at the beginning of the recruitment process. 5.2.4 During the internal or open recruitment posting process, if there is at least one internal applicant and he/she meets the minimum qualifications for the position, that applicant will be interviewed. If an internal applicant is not selected or if there are no internal applicants, the position is shall be advertised as an external open recruitment. 5.2.5 Internal job opportunities will be posted to the intranet which is accessible to all OCSD employees. 5.2.6 Internal Job Announcement Notifications are sent via e-mail to all OCSD employees for internal and open external recruitments. 5.3 ADVERTISING 5.3.1 Advertising for positions at OCSD ensures positions are filled with the best- qualified candidate for the job. OCSD shall make every reasonable effort to advertise open el<ternal positions to all segments of the public to ensure EOE guidelines are followed. 5.3.2 All positions are advertised on the internet and may be posted in other media when deemed appropriate. Technical and hard-to-fill positions are advertised on trade specific websites. 5.3.3 Trade magazines and other forms of advertising may be used for hard-to-fill or specialized positions. 5.4 APPLICANT SCREENING 5.4.1 Applications and resumes are SRatt only -be accepted electronically. aftef Mafch 2005. All other application material will be accepted at the interview process. Unsolicited application material will not be accepted at anytime. 5.4.2 Once an application and/or resume is received and reviewed, it will only be selected for further consideration if the minimum job requirements for the GpeR position are met. 5.4.3 The Department Head (or designee} hiring manager/supervisor is given access to files within oo the online application program pertinent to the job opening for which the Department Head (or designee) manager submitted a personnel requisition. The Department Head (or designee} manager may review applications that meet the minimum qualifications to determine which candidates may be interviewed. 5.4.4 All materials (e.g., applications, resumes, interviewer notes, interview packets, packets, etc.) submitted by applicants/candidates or generated by OCSD staff during the interview process are confidential and are considered OCSD property and must be returned to the Human Resources Department Page 3 of 11 Book Page 22 upon completion of the hiring process. All recruitment files are maintained by OCSD in accordance with established record keeping guidelines. 5.5 INTERVIEW PROCESS 5.5.1 The interview panel members are selected along with the interview date(s). Applicants are scheduled, interview questions are prepared, and the interview panel conducts the actual interview. 5.5.2 A Human Resources representative and the hiring supervisor shall tAe feG~i-ter and the hiring supervisef work together to select the interview panel, which consists of three panel members. However, the recruiter makes the final decision to ensure consistency. The ideal interview panel •.viii include-the hiring supervisor, one employee within the department, t•No indi11iduals outside the department, and the recruiter, or another member of the Human Resources Department. Normally, subordinates within the hiring department are not incluGed--fn-#le intervie•n panel. The interview panel will be comprised of the hiring supervisor, one additional member from within the department, and one from outside the department. The Human Resources Department representative will facilitate and monitor the interview process, but will not have a vote. 5.5.3 The Human Resources Department monitors panel composition to ensure that there is no conflict of interest when a candidate is known to a current or former employee. 5.5.4 The Human Resources representative recruiter and the Department Head (or designee) shall hiring manager work together to establish a set of interview questions and criteria for the candidates. 5.5.5 The Human Resources representative recruiter prepares interview packets and distributes them to the interview panel. Packets include: • An overview of the interview process • A copy of the interview schedule • A copy of the employment bulletin opportunity/posting • Copies of candidate applications • Interview questions and evaluation forms for each candidate 5.5.6 The interview panel will meet at least one half hour before the interview to gain an understanding from the hiring supervisor about the criteria with which to rank the ideal candidates. The hiring supervisor, in consultation with the Human Resources Representative may add or delete ~uestions P.rovidin-g they are related to the pre-established criteria. The panel 'II-ill finalize the ~te~•iew questions that are recommended by the hiring supervisor and the recruiter. The panel may add or delete questions. The panel will gain an understanding from the hiring supeFVisor about the criteria 'Nith which to rank select the ideal candidate, and adopt the appropriate criteria. 5.5.7 The Human Resources representative recruiter facilitates the interview process. When interviews are completed, the interview panel members evaluate each candidate interviewed. The-top three candidates are identified and ranked in order of preference based on the criteria established prior to the intervie•N. The recruiter coUects the documentation at the end of the interview-process. The panel will rank a list of the top candidates (no more lhan three) based on a majority decision. The hiring supervisor will then Page 4 ofll Book Page 23 choose from among the top candidates with the concurrence of the General Manager (or designee). The Department Head (or designee) will report the final hiring decision to the Human Resources Department, to include all applicable interview materials (e.g., applications, resumes, interviewer notes, interview packets, etc.). 5.5.8 The final candidate is selected from the-top three candidates when a majority decision is reached. If a majority desi-sieA--Gaflnot be reached, the General Manager or designee will make the finakieterFRiA-ation based on the input of the hiring supervisor, the panel.and the Human Resources Department If a majority decision is reached, and the hiring-&1:1pervisor does not agree 'llith the final decision , he or she may appeal for a finaklecision from the General Manager or designee. 5.6 RECRUITMENT APPEALS PROCESS 5.6.1 Employees should bring recruitment process and decision-making issues to the attention of the Human Resources Manager as soon as possible. The manager will review the issue and provide a written response within five business days from the issue notification date. 5.6.2 If the issue is not resolved to the employee's satisfaction, the employee may file a written statement concerning the problem to the Director of Human Resources within ten business days of receipt of the manager's decision. Upon request by either party, a meeting may be held to discuss the issue and establish remedies. 5.6.3 The employee will be provided a written response from the Director of Human Resources (or designee), or designee, within ten business days after the employee's theff statement is received. The decision of the Director of Human Resources, or designee, is final (see policy F50.00, Problem Solving Procedure and F60.00, Grievance Procedure). 5.6.4 Time limits may be extended for cause upon mutual consent of the parties. 5.7 EMPLOYMENT OFFERS 5.7.1 The Human Resources representative recruiter and Department Head (or designee) hiring supervisor-determine an appropriate starting salary for all candidates, except those designated as "at-will" employees, based on a Salary Offer Analysis. This analysis will include the applicant's: • Qualifications • Years of experience • Educational background • Salary history • Parity within the department 5.7.2 The Human Resources Compensation Analyst reviews the recommended a job candidate's salary request, prepares an analysis, and approves or makes a additional recommendations on placement in the applicable salary range . .A.II salary offers that are either-at or beyond step 4 of the range will require the appro•Jal of the Director of HR, or ~fie&.-If market or other material conditions necessitate offering a job candidate a pay rate up to the salary range mid-point, a department head may recommend, and with the concurrence of the Director of Human Resources, may approve the proposed Page 5 of 11 Book Page 24 hire rate. The General Manager, or designee, shall approve all recommended salary offers that would r~sult in -a new hire pay rate at Step 4 or greater. Linder no circumstances should panel members (excluding the Human Resources representative) or any other OCSD employee discuss salary offers with candidates or make promises of any kind. Human Resources staff are the only employees authorized to engage in salary discussions with job candidates. 5. 7.3 The 1-tuman Resour:ces representative FeGFblitef completes a status change form for the candidate and initiates the background investigation. Background investigation results are provided to the candidate by OCSD's background screening firm. 5.7.4 When the status change form is approved, the Human Resources representative recruiter makes a verbal employment offer to the candidate, which is contingent upon results of a background investigation, pre- employment physical and drug screening. Upon acceptance of the employment offer, the Human Resources representative recruiter sends letters of regret regret letters to unsuccessful candidates. Internal candidates are contacted personally prior to receiving letters of regret regret letters. 5.7.5 The Human Resources representative recruiter schedules the pre- employment physical and drug screen for the candidate, works with the Department Head (or desigr,ee) supervisor to establish a potential start date and prepares a formal offer letter for the candidate. 5.7.6 When the Human Resources r~presentative F0Gfl:li.teF (or designee) has cleared the background investigation, pre-employment physical and drug screening results, the applicant will be contacted to confirm the employment offer. 5. 7. 7 The Human Resources representative coordinates the candidate's start date. 5.7.8 In the event that a candidate is selected and voluntarily or involuntarily vacates the position prior to completing the required six month probationary period, the Human Resources Department, at the request of the DeQartment Head (or designee) hiring manager, may exercise the option to extend an offer to the second candidate from the original interview process. 5.8 PLANNED RECRUITMENT 5.8.1 In instances where an existing OCSD employee plans to retire or leave the agency, the Department Head may request to initiate the planned recruitment process by notifying the Director of HR, or designee. If approved, the Human Resources Department shall begin the recruitment process for the anticipated vacancy using the internal recruitment process. The Human Resources Department must have a minimum of six months notice to consider a planned recruitment, a signed memo from the existing OCSD employee stating his/her retirement or leave date, and at least one budgeted but vacant position that OCSD can borrow from. 5.8.2 The Planned Recruitment process will be initiated, as scheduling permits, prior to the individual leaving OCSD in order to allow for an adequate amount of cross training. Page 6 ofll Book Page25 5.8.3 If a candidate is selected from the internal recruitment process, the candidate shall remain in his/her existing position with the same salary and benefits while cross-training in the new position as scheduling permits. 5.8.4 The candidate shall assume the salary, benefits and full range of duties of the vacant position the first business day that the position is vacant. The position used to initiate the planned recruitment will then be returned to the "pool" within the Division 540 full-time equivalent (FTE) budget for use with other planned recruitments. 5.8.5 The date the candidate assumes the vacant position shall be the first day of the candidate's six-month probationary period. The six-month probationary period will be utilized as an opportunity for the candidate and OCSD management to assess whether or not the decision was appropriate. The candidate may be returned to his/her previous position if the decision is determined to be inappropriate. 5.8.6 If a candidate is not selected from the internal recruitment process, the position will be posted for external candidates immediately to ensure an adequate amount of time for cross-training. 6.0 EXCEPTIONS 6.1 EMPLOYMENT OF FORMER EMPLOYEES 6.1.1 Employment of former employees for full-time equivalent or part-time positions shall be subject to and conducted in accordance with this policy. 6.1.2 Employment of a former employee is subject to the approval of the General Manager and the Director of Human Resources. 6.1.3 In all cases, approval of the General Manager and the Director of Human Resources shall be received prior to an offer of employment to a former employee. 6.1.4 OCSD policy prohibits the rehire of former full-time, regular employees or "at- will" employees who: were terminated for workplace misconduct; resigned while charges were pending against the employee; resigned while serving a suspension; failed to provide two weeks written notice in advance of resignation depending upon employment status, unless approved by the Director of Human Resources, or designee; or failed to return to work following an absence without leave of 40 consecutive work hours without notifying the immediate supervisor or the Human Resources Department with an acceptable reason for their absence. 6.1.5 If any former employee commences doing business wherein the employee, his/her spouse, or members of his/her immediate family are sole proprietors, or majority or controlling shareholders or owners of a corporation, partnership or other business entity, such business shall not be retained as an independent contractor or consultant to provide service directly to OCSD for a period of one year after leaving OCSD's employment. Thereafter, said business entity shall be allowed to contract with OCSD upon compliance with all resolutions and regulations of OCSD then in effect, relating to the procurement of services. Page 7 of 11 Book Page 26 6.1.6 If any former employee becomes employed by any firm or business entity in which the former employee., his/her spouse or members of his/her immediate family own less than the majority or controlling interest in said entity, said entity shall not be prohibited from contracting with the OCSD. However, the former employee shall not perform work on OCSD projects for a period of one year after leaving OCSD employment; nor shall such former employee contact OCSD officers or employees for the purpose of attempting to influence any OCSD decision, including but not limited to, the award of contract, issuance of permits, or compromise of administrative civil penalties, for a like period of one year. Said services shall be obtained only in accordance with all rules and procedures of OCSD relating to procurement. 6.1. 7 Any OCSD employee who receives an offer of employment or a request to discuss potential employment from any person or business entity performing services for OCSD shall report such contact to his or her immediate supervisor, who shall decide whether any change in assignment is necessary or appropriate while the offer or discussions are pending. 6.1.8 The prohibitions of this policy may be waived by the Finance, Administration and Human Resources Committee of the Boards of Directors if, on a case-by- case basis, it is determined to be in the best interests of OCSD to do so. 6.1.9 All former employees who are rehired will be placed on an initial probationary period as defined in this policy. All prior service with OCSD will not be counted for accrual purposes including, but not limited to, leaves of absence and seniority. 6.2 RE-EMPLOYMENT OF OCSD RETIRED EMPLOYEES 6.2.1 The General Manager may, with the written approval of the Board Chair, employ on an as-needed basis, a former employee retired from OCSD when the individual possesses knowledge and expertise of unique and particular benefit to OCSD. The length of service performed in any one year shall be limited in accordance with the provisions prescribed by the Orange County Employees' Retirement System (currently 120-day maximum). 6.2.2 As-needed service, by a former employee retired from OCSD, shall be compensated at the same current hourly rate of the retired employee's position classification, or if no such classification exists, at a rate not to exceed that paid for the most comparable classification. The retired employee shall not be entitled to receive any benefits otherwise payable to OCSD employees. In the event any employment under this provision involves work assignments outside of Orange County, the current expense reimbursement policy established for regular employees will apply. 6.2.3 On occasion, OCSD may offer an early retirement incentive to staff under economic conditions in which it is deemed necessary. Employees who select an early retirement incentive offered by OCSD may not be eligible for rehire. 6.3 EMPLOYMENT OF RELATIVES 6.3.1 Except as otherwise provided by law, no employee, prospective employee or applicant shall be denied employment or benefits of employment solely on the basis of his or her familial relationship with an employee of the agency or a member of the Board of Directors. Page 8 of 11 BookPage27 6.3.2 OCSD will make reasonable efforts to assign job duties to eliminate any potential for an adverse impact on supervision, safety, security or morale, or potential conflicts of interest. 6.4 LATERAL TRANSFERS 6.4.1 Employees may request a lateral transfer to a budgeted vacant position within the same classification of another department. For a lateral transfer to be considered, the employee must have demonstrated satisfactory performance within the last six months of the request and have no pending disciplinary action. The lateral transfer must be of benefit to OCSD. 6.4.2 Employees who wish to be considered for a lateral transfer shall notify the Human Resources Department in writing of their intent prior to recruitment of the budgeted position. Employees who are interested in a lateral transfer, but are unaware of any budgeted vacant positions within the same classification, may contact the Human Resources Department. The employee's written intent must be approved by any affected department head and the Director of Human Resources. In the event a transfer is approved and accepted by the employee, the department from which the employee is transferring may determine the effective date based upon operational requirements and a reasonable period of time to acquire a suitable replacement. 6.4.3 Lateral transfers do not normally involve increased levels of duties and responsibilities, or otherwise qualify as promotions, and therefore do not involve salary adjustments. 6.4.4 In the event an adjustment appears warranted based on extenuating circumstances, the adjustment must have written approval from the department head prior to being extended to the employee. 7.0 PROVISIONS AND CONDITIONS 7.1 The interview process for Student Intern positions shall be an abbreviated version of the process outlined in section 5.5 and will be administered by the appropriate division manager/supervisor and a Human Resources representative. 7.2 OCSD's Board of Directors must approve unbudgeted positions for new hires or promotions before any internal or open recruitment effort is initiated. 7.3 Hiring an individual into a budgeted position requires the approval of the Department Head and General Manager. 7.4 Promoting an individual into a budgeted position requires the approval of the Division Manager, Department Head or General Manager. 7.5 OCSD retains the right to refuse to place a relative under the direct supervision of an OCSD employee where such has a potential for creating an adverse impact on supervision, safety, security or morale. 7.6 OCSD retains the right to refuse to place relatives in the same department, division, or facility where such has a potential for creating an adverse impact on supervision, safety, security or morale, or involves potential conflicts of interest. 7.7 Employees on Performance Improvement Plans are not eligible for promotional opportunities. Page 9 of 11 Book Page 28 7.8 INITIAL PROBATIONARY PERIOD 7.8.1 Unless designated as an "at-will" Executive Management Team (EMT) member or Student Intern, all new employees and employees who are reassigned or laterally transferred serve a probationary period . In accordance with applicable MOUs and policies, the probationary period begins with the date of hire, reassignment, or transfer and extends to at least the first day of the pay period following twenty-six weeks of employment without a break in service. For new employees, this probationary period is regarded as an extension of the hiring process, and provides an opportunity for both the employee and OCSD's management to assess, over a substantial period of time, whether or not the hiring decision was appropriate and resulted in a relationship that adequately meets the needs of both the individual and OCSD. 7.8.2 The probationary period may be extended by mutual agreement between OCSD and the employee, prior to the expiration of the probationary period. An employee's probationary period may be extended when there is a need to further assess the individual's abilities to satisfactorily perform the duties required for their job classification. Probationary employees may be released by OCSD at any time during the probationary period (including any extension) without cause or reason. 7.8.3 A probationary employee's work performance is closely monitored during this period to ensure that the employee understands the duties, responsibilities and management expectations of the position, and to allow an opportunity for the supervisor or manager to provide proper direction and guidance. Employees who do not demonstrate the potential for meeting performance expectations for their position within a reasonable period of time may be released prior to the completion of the Probationary Period. Probationary employees shall serve at the will of OCSD during this period. In the event of release of a probationary employee, the employee shall not be entitled to receive any severance pay. 7.9 PROMOTIONAL PROBATIONARY PERIOD 7.9.1 All promoted employees, except those designated as "at-will" employees, shall serve a promotional probationary period lasting at least 120 days or 6- months, depending upon the applicable MOU provisions, beginning with the effective date of promotion. This period is regarded as an extension of the selection process, and provides an opportunity for both the employee and OCSD management to assess, over a substantial period of time, whether or not the decision was appropriate. 7.10 REFERENCE CHECKS 7.10.1 Employment with OCSD is contingent upon a pre-employment screening process which includes a physical examination, drug/alcohol test and background investigation. Candidates must also be able to provide documentation authorizing their legal right to work in the United States as per the Immigration Reform and Control Act of 1986. 7.10.2 OCSD may verify information contained in the job application of a prospective employee with the prospective employee's authorization. Page 10 of 11 Book Page 29 7.10.3 Inquiries to OCSD employees regarding reference or employment verification checks of former or present employees shall be discussed with or referred to Human Resources prior to any response. 8.0 RELATED DOCUMENTS 8.1 OCSD Student Intern Program guidelines 8.2 Policy B160.00, EMT Recruitment 8.3 Policy F50.00, Problem Solving Procedure 8.4 Policy FS0.00, Grievance Procedure 8.5 Policy C180.00, At-Will Policy 8.6 Local 501, Operations and Maintenance Unit MOU 8. 7 Administrative and Clerical Unit MOU 8.8 Engineering Unit MOU 8.9 Technical Services Unit MOU 8.10 Professional Group MOU 8.11 Supervisor Group MOU Page 11 of 11 Book Page 30 RESOLUTION NO. OCSD 06-XX AMENDING RESOLUTION NO. OCSD 98-33 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT AMENDING THE HUMAN RESOURCES POLICIES AND PROCEDURES **·**\1-***-lrlr********W********** The Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: That Exhibit "A" of Resolution No. OCSD 98-33 is hereby amended by amending Policy No. 8150.00, Recruitment and Selection, set forth in Attachment No. 1, attached hereto and incorporated herein by reference. Section 2: That all other terms and conditions of Resolution No. OCSD 98-33, as previously recommended, shall remain in full force and effect. Section 3: That all future amendments to Resolution No. OCSD 98-33 be made by Resolution. PASSED AND ADOPTED at a regular meeting held June 28, 2006. Chair ATTEST: Board Secretary Book Page 31 FAHR COMMITTEE Meeting Date To Bel. of Dir. 06/14/06 06/28/06 AGENDA REPORT Item Number Item Number FAHR06-46 Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer SUBJECT: PROPOSED FY 2006-07 and 2007-08 OPERATING, CAPITAL, DEBT/COP SERVICE, SELF-INSURANCE BUDGETS AND OTHER REQUIREMENTS BUDGET GENERAL MANAGER'S RECOMMENDATION Approve proposed Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY 2006-07 and 2007-08, as follows Net Operations, Maintenance & Working Capital Worker's Compensation Self Insurance General Liability and Property Self-Insurance Net Capital Improvement Program Debt/COP Service Other Requirements Total SUMMARY 2006-07 $129,054,210 $526,200 $1,766,100 $266,088,000 $54,410,000 $4,499,800 $456,344,310 2007-08 $135,602,130 $559,400 $2,055,200 $338,818,000 $65,462,000 $2,645,300 $545,142,030 The FY 2006-07 and 2007-08 Budget is enclosed for the Committee's consideration. The Budget has been presented to the OMTS and PDC 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. 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. The FAHR Committee is requested to recommend that the Board of Directors approve this budget. PRIOR COMMITTEE/BOARD ACTIONS Board approved 2005-06 Budget for the period July 1, 2005 through June 30, 2006. Budget overviews were present to the FAHR, PDC and OMTS Committees in May and June 2006. Book Page32 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. 1Z! Not applicable (information item) ADDITIONAL INFORMATION None. ALTERNATIVES N/A CEQA FINDINGS NIA ATTACHMENTS 1 . Proposed FY 2006-07 and 2007-08 Budget 2. 2006-07 and 2007-08 Budget Executive Summary H:ldeptlagenda\FAHRIFAHR2006\0606\06.06-46.Budget 2006-07 2007-08.doc Revised: 06/04103 Book Page33 Page2 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer Originator: Michael White, Controller Meeting Date 06/14/06 Item Number FAHR06-47 SUBJECT: ANNUAL RENEWAL OF BOILER & MACHINERY INSURANCE PROGRAM GENERAL MANAGER'S RECOMMENDATION To Bet of Dir. 06/28/06 Item Number Renew the District's Boiler & Machinery Insurance Program for the period July 1, 2006 to June 30, 2007, in an amount not to exceed $25,387. SUMMARY Staff recommends the annual renewal of ~oiler & Machinery insurance coverage for the District covering the period from July 1, 2006 through June 30, 2007. The Boiler & Machinery insurance program provides comprehensive coverage for loss caused by machinery breakdown and explosion of steam boilers or other covered process equipment, including damage to the equipment itself and damage to other property caused by covered accident. Sufficient funds have been budgeted within the FY 2006-07 budget to cover premium costs. PRIOR COMMITTEE/BOARD ACTIONS Board approved annual renewal for FY 2005-06. PROJECT/CONTRACT COST SUMMARY Sufficient funds are contained in the current budget to cover premium costs of $25,387. BUDGET IMPACT [8J 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. D Not applicable (information item) ADDITIONAL INFORMATION The District's FY 2006-07 Boiler & Machinery insurance program provides coverage ($100 million per occurrence/ with deductibles ranging from $25,000 to $350,000) for losses caused by covered machinery breakdown (e.g., motors, steam turbines, digesters, co-gen engines). Damages to the equipment, as well as damages to other property and improvements caused by the machinery breakdown, are covered by the H:ldept\agenda\FAHRIFAHR2006\0606106.06-47.Boiler Machinery Insurance.doc Revised: 06/04/03 BookPage34 Page 1 boiler & machinery insurance. This program augments the District's all-risk property insurance that covers perils such as fire and flood. July 1, 2006 -June 30, 2007 Renewal Cycle Driver Alliant Insurance Services, the District's Broker of Record, has reviewed the current state of the Boiler & Machinery insurance market and recommends that the District renew Boiler & Machinery insurance coverage with Lexington Insurance Company for the primary layer of $10 million and with two group of carriers, CNA Insurance Company, and two foreign excess insurance companies, providing coverage jointly on the second layer of $90 million for the period of July 1, 2006 through June 30, 2007. The combined proposed insurance premium of $25,387 is a 6.9 percent increase over the prior year premium of $23,753. Following are the reserve levels, A.M. Best Guide Rating (the insurance industry rating agency), and the Standard and Poor's rating for each of the three insurance groups: Proposed Schedule of Insurers Reserve A.M Best Standard California Company Level Rating and Poor's Status Lexington > $2 billion A+, Superior AA+ Non-Admitted CNA > $2 billion A, Excellent A-Admitted Great Lakes Reinsurance (UK) > $2 billion A+, Superior A+ Non-Admitted Lloyds of London > $2 billion A, Excellent A Non-Admitted Conclusion All proposed insurance carriers are strong insurance companies and can offer Boiler & Machinery insurance with high coverage levels for operations as large and complex as the District. As of the date of this report, they offer the most competitive pricing for the upcoming renewal period. Staff concurs with Driver Alliant's findings and recommendation. Sufficient funds are contained in the current budget to cover premium costs of $25,387 ALTERNATIVES NIA ATTACHMENTS None. H:ldept\agenda\FAHRIFAHR200610606\06.06-47.Boiler Machinery Insurance.doc Revised: 06/04/03 Book Page 35 Page2 FAHR CO MM ITTEE AGENDA REPORT Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer Originator: Michael D. White, Controller Meeting Date 06/14/06 Item Number FAHR06-48 SUBJECT: ANNUAL RENEWAL OF THE DISTRICT'S EXCESS WORKERS' COMPENSATION INSURANCE GENERAL MANAGER'S RECOMMENDATION Renew the District's Excess Workers' Compensation Insurance for the period July 1, 2006 through June 30, 2007, in an amount to be determined. SUMMARY To Bel. of Dir. 06/28/06 Item Number The District's Excess Workers' Compensation insurance coverage with the California Public Entity Insurance Authority (CPEIA), the third year the District has participated in this program, expires on June 30, 2006 and is now up for renewal for fiscal year 2006- 07. The District's Excess Workers' Compensation Program currently provides coverage to $150 million with a self-insured retention (SIR), or deductible of $500,000. The proposed renewal maintains the existing $150 million coverage limit and self- insured retention of $500,000. As of the date of this report, CPEIA is still negotiating Premiums for this enhanced policy and the final rate should be known by the Board meeting of June 28, 2006. The District's broker of record, Driver Alliant, is projecting a 10 percent rate increase over the prior year's rate per actual payroll of $0.003993. In addition, Driver Alliant has searched the market place for competitive alternatives and has determined that no other insurance carriers are able to offer significant limits of coverage beyond $10 million and/or with less than $1 million self insured retentions, and rates on the programs they do offer are universally higher. Staff recommends the annual renewal of All-Risk Property and Flood insurance coverage for the District covering the period from July 1, 2006 through June 30, 2007. Sufficient funds have been budgeted within the FY 2006-07 budget to cover premium costs. PRIOR COMMITTEE/BOARD ACTIONS Board last approved renewal for the period July 1, 2005 through June 30, 2006. H:ldeptlagenda\FAHR\FAHR2006\0606106.06-48.Workers Compensation Insurance.doc Revised: 06104/03 Book Page 36 Page 1 PROJECT/CONTRACT COST SUMMARY The premium cost for FY 2006-07 will be reported at the Board Meeting of June 28, 2006, prior to obtaining the Board's approval. BUDGET IMPACT IZI 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. D Not applicable (information item) ADDITIONAL INFORMATION Background The District's use of Excess Workers' Compensation insurance dates back to 1989-90. At that time, the Fiscal Policy Committee approved a self-insured retention (SIR), or deductible, of $250,000, for such coverage. Due to the hardening of the workers' compensation market, this deductible was raised to $500,000 beginning in FY 2002-03 through a policy with Employers Reinsurance Corporation (ERC) that provided coverage to $25 million with a self-insured retention (SIR), or deductible of $500,000. The premium cost charged by ERC for the period July 2005 to June 30, 2006 was $69,090. Staff has reviewed the District's most recent five-year workers' compensation loss history with Cambridge Integrated Services Group, the District's third-party workers' compensation administrator, and has verified that the District has not incurred a loss which exceeded the $500,000 SIR. In FY 2003-04, the District joined the California Public Entity Insurance Authority (CPEIA), the lowest responsible provider, and approved the District's Excess Workers' Compensation Insurance, with limits of $50 million, a self-insured retention of $500,000, in an amount totaling $168,720. In FY 2004-05, the District again renewed with CPEIA with increased limits from $50 million to $100 million while maintaining the self-insured retention of $500,000, in an amount totaling $208,384. In FY 2005-06, CPEIA negotiated an increase in the $100 million coverage limit to $150 million, with the same $500,000 self-insured retention, at a rate of $.00370 per actual payroll, or a total estimated premium of $196,772. Even with the $50 million increase in H:ldeptlagenda\FAHRIFAHR200610606106.06-48.Workers Compensation Insurance.doc Revised: 06104/03 Book Page37 Page2 the coverage limit, this is a 14.5 percent reduction from the prior year rate of $0.00433 per actual payroll. FY 2006-07 Renewal Cycle Staff is seeking workers' compensation insurance renewal with coverages and deductibles at the current levels. The CPEIA proposed renewal rates are expected to be finalized by the end of June. As previously indicated, Driver Alliant is projecting a 10 percent rate increase over the prior year's rate per actual payroll of $0.003993 providing that the coverage is renewed at the same limits and self-insured retentions. Some additional risk is associated with the CPEIA joint powers authority in that a premium surcharge can be assessed to individual members based on an unusually large number of losses occurring outside of the actuarial evaluation estimates. However, only once has an actual surcharge ever been made to the County Supervisors Association of California (CSAC), the parent organization to CPEIA that has been in existence for over 20 years. The premium surcharge was assessed following the first year of CSAC's existence and prior to the use of an actuary for the determination of rates and assumptions. Rates have been based on actuarial evaluations ever since the shortfall in the first year. CPEIA itself has only been in existence for five years and has never initiated a premium surcharge. RECOMMENDATION Excess Workers' Compensation Program is recommended for renewal through CPEIA. This policy will provide limits of $150 million, depending on final CPEIA Board action, with a self-insured retention of $500,000. The premium cost for FY 2006-07 is being proposed at an approximate 10 percent increase with the final quote being presented at the Board Meeting of June 28, 2006. Based on preliminary information on premiums, staff is certain that sufficient funds have been budgeted to cover premium costs. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS None. H:\deptlagenda\FAHRIFAHR2006\0606106.06-48.Workers Compensation Insurance.doc Revised: 06/04/03 Book Page38 Page 3 FAHR COM~ITTEE AGENDA REPORT Orange County Sanitation District FROM: Lorenzo Tyner, Director of Financerrreasurer Originator: Michael D. White, Controller Meeting Date To Bd. of Dir. 06/14/06 06/28/06 Item Number Item Number FAHR06-49 SUBJECT: ANNUAL RENEWAL OF THE DISTRICT'S ALL-RISK PROPERTY AND FLOOD INSURANCE PROGRAM FOR FY 2006-07 GENERAL MANAGER'S RECOMMENDATION Renew the District's All-Risk Property and Flood Insurance Program for the period July 1, 2006 through June 30, 2007, in an amount not to exceed $777,833 SUMMARY The District's All-Risk Property and Flood insurance coverage expires June 30, 2006 and is now up for renewal for FY 2006-07. The All-Risk insurance program provides for comprehensive coverage for the District's real and personal property from all perils including fire, flood, and business interruption. This renewal proposes to decrease the current year's $1 billion blanket loss limit for most perils including fire damage to $500 million while maintaining the existing $300 million blanket loss limit for flood. The decrease in perils other than fire is the result of the reduced capacity in this year's renewal market. Driver Alliant, the District's broker of Record, is continuing to negotiate for the higher $1 billion limit, however as of this writing, only $500 million can be confirmed. Premiums for this policy will increase from the prior year's $656, 158 to $777,833, or 18.5 percent. Staff recommends the annual renewal of All-Risk Property and Flood insurance coverage for the District covering the period from July 1, 2006 through June 30, 2007. Sufficient funds have been budgeted within the FY 2006-07 budget to cover premium costs. PRIOR COMMITTEE/BOARD ACTIONS Board approved annual renewal for FY 2005-06. PROJECT/CONTRACT COST SUMMARY Sufficient funds have been proposed within the FY 2006-07 Budget to cover premium costs in an amount not to exceed $777,833. BUDGET IMPACT This item has been budgeted. (Line item: H:\dept\agenda\FAHRIFAHR2006\0606\06.06-49.AII Risk Property Ins.doc Revised: 06/04/03 BookPage39 Page 1 Sufficient funds have been budgeted to cover premium costs in an amount not to exceed $777,833. ALTERNATIVES None. CEQA FINDINGS N/A ATTACHMENTS None H:\dept\egenda\FAHRIFAHR2006\0606\06.06-49.AII Risk Property Ins.doc Revised: 06/04/03 Page3 BookPage41 FAHR COMMITTEE Meeting Date To Bel. of Dir. 06/14/06 06/28/06 AGENDA REPORT Item Number Item Number Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer Originator: Michael D. White, Controller FAHR06-50 SUBJECT: ANNUAL RENEWAL OF THE DISTRICT'S EXCESS LIABILITY INSURANCE PROGRAM, FY 2006-07 GENERAL MANAGER'S RECOMMENDATION Renew the District's Excess General Liability Insurance Program for the period July 1, 2006 through June 30, 2007, in an amount to be determined at the June 14, 2006 FAHR meeting. SUMMARY Staff recommends the renewal of the District's $25 million Excess General Liability Insurance Program for FY 2006-07. The coverage is provided through the California Municipal Excess Liability Program (CAMEL). The District has participated in the CAMEL program since FY 1996-97 after completing a competitive bid selection process. Approval of this agenda item will extend the District's· $25 million liability coverage through the CAMEL program for an additional year. At this time, final premium costs are being negotiated and will be presented to the Committee on June 14. PRIOR COMMITTEE/BOARD ACTION Board last approved renewal for the period July 1, 2005 through June 30, 2006. PROJECT/CONTRACT COST SUMMARY NIA BUDGET IMPACT IZ] This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. H:\dept\agenda\FAHRIFAHR2006\0606\06.06-50.Excess General Liability Ins.doc BookPage42 Page 1 D This item has not been budgeted. D Not applicable (information item) ADDITIONAL INFORMATION Background The current liability insurance program provides the District with a $25 million policy of comprehensive coverage for municipal liability, bodily injury and property damage, and personal injury. The program was structured to also include Employment Practices, and Public Officials Errors & Omissions coverage. The $25 million coverage is per occurrence, with a self-insured deductible of $250,000 per occurrence. Since 1997, the Employment Practices portion of coverage was enhanced from a $2 million sub-limit, to the full $25 million policy limit. · This insurance program is provided through the California Municipal Excess Liability program (CAMEL) and consists of two separate layers of coverage. The first layer is the "Basic" $10 million program with self-insured retention of $250,000. The second layer consists of $15 million of coverage in excess of the first layer of $10 million. In FY 2005-06, the CAMEL program utilized American International Group (AIG) for renewal of the "Basic" $10 million program with a Best Guide Rating of A+. The second layer was placed with Traders and Pacific Insurance Company, a carrier that held a Best Guide Rating of A. Total premium cost for these two layers of coverage, including terrorism coverage, totaled $408,330, a 3.2 percent increase over the prior year total of $395,632. FY 2006-07 Renewal Cycle The District's Broker of Record, Driver Alliant, is still in the process of negotiating several renewal options and is hoping to be able to provide a formal proposal prior to the FAHR Committee Meeting of June 14th• At this time, they are estimating premium increases to be limited to less than 10 percent over the FY 2005-06 premium of $408,330 and are diligently working towards a much smaller increase, with the possibility of renewing at approximately the same rate as the prior year. Recommendation The FY 2006-07 Excess General Liability Insurance Program is recommended for renewal through the CAMEL joint purchase program. This policy provides for $25 million of comprehensive coverage for municipal liability, bodily injury and property damage, and personal injury, with a self-insured deductible of $250,000 per occurrence. H:ldeptlagenda\FAHRIFAHR2006\0606\06.06-50.Excess General Liability Ins.doc Page2 Book Page43 The premium cost for FY 2006-07 will be reported on June 14, 2006 prior to obtaining the Committee's approval. Based on preliminary information on premiums, staff is certain that sufficient funds have been budgeted to cover premium costs. ALTERNATIVES N/A ATTACHMENTS 1. Letter dated May 31, 2006 from the District's Broker of Record, Driver Alliant, on the renewal status for excess liability insurance. H:\dept\agenda\FAHR\FAHR2006\0606\06.06-50.Excess General Liabiltty Ins.doc Page 3 Book Page44 ORANGE COUNlY SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 Most OCSD revenue is related to user fees. General User Fees Permit User Fees Capital Facilities Capacity Charge Total Fees & Charges FY 06-07 FY 07-08 $155 M $ 17 M $ 11 M $183 M $170 M $ 19 M $ 11 M $ 200 M Non-fee related general income exceeds $100 million annually. FY 06-07 FY 07-08 Property Tax $ 55 M $ 58 M Interest $ 17 M $ 16 M Other $ 46 M $ 33 M Total General Income $118 M $107 M 4 5 3 Expenditures will increase nearly $1 00M in FY 07-08, primarily as a result of the CIP. FY 06-07 FY 07-08 CIP (including Debt Service) $ 321 M (70%) $ 404 M (75%) Collection, Treatment & Disposal $ 72 M (16%) $ 75 M (13%) Central Agency Costs"' $ 63 M (14%) $ 66 M (12%) Total Expenditures $ 456 M $ 545 M ± Includes self insurance requirements. The Capital Improvement Program {CIP) by major process. FY 06-07 FY 07-08 1. Replacement / Rehabilitation $123 M $ 121 M 2. Improved Treatment $ 79 M $147 M 3. Additional Capacity $ 54 M $ 58M 4. Support $ 10 M $ 13 M Sub-Total $266M $339M Debt Service $ 54 M $ 65 M Total CIP $321 M $404M 6 7 4 Various repairs at the OCSD treatment plants will increases our repairs and maintenance budget. Repairs / Maint. Diffuser Aeplacern1:1nt CenGen Engine 0vsrfiauls Digester Cleanlng Projected Proposed Proposed FY 05-06 Increase FY 06-07 $ 8.0 + $ 2.5 $ 10.5 Biosolids hauling costs continue to rise increasing contractual services budget. Projected Proposed Proposed FY 05-06 Increase FY 06-07 Solids Removal $ 11.0 + $1.8 $12.8 Other $ 4.1 + $0.4 $ 4.5 Total Contractual $15.1 + $2.2 $17.3 Services 14 15 8 The utilities budget is increased, as electricity costs continue to rise. Projected Proposed Proposed FY 05-06 Increase FY 06-07 Natural Gas $ 1.0 +$ 0.0 $1.0 Electricity $ 5.3 +$ 0.9 $ 6.2 Other $ 1.5 + $ 0.1 $ 1.6 Total Utilities $ 7.8 + $1.0 $ 8.8 Next Steps • Presentation and adoption at the June Board meeting 16 17 9 cover photo: New Trickling Filter Facility at Reclamation Plant No. 1. r r r- 1 ,... I l_ ( L L :------, ------- Orange County Sanitation District, California Budget Executive Summary FISCAL YEARS 2006-07 AND 2007-08 Vision tateme t "To maintain world-class leadership in wastewater and water resource management." Table of Contents OCSD Service Area ........................................................................................................... -............... i Board of Directors ............................................................................................................................ ii Board Committees ........................................................................................................................... iii Orange County Sanitation District Organization Chart ................................................................... iv Administrative Officials .................................................................................................................... v Message from the General Manager ............................................................................................. vi Finance Summary Financial Overview & Budgetary Issues .......................................................................................... 1 Where the Money Comes From ..................................................................................................... 5 Revenues by Category ..................................................................................................................... 6 Where the Money Goes ..................................................... , ............................................................. 7 Expenses by Category ..................................................................................................................... 8 Capital mprovement Program ........................................................................... 9 Debt Financing Program ......................................................................................... 12 Operating Expenses .................................................................................................... 13 Departments Summary ........................................... , ............................................................................................ 17 Office of the General Manager ...................................................................................................... 19 Finance ........................................................................................................................................... 21 Human Resources ......................................................................................................................... 23 Information Technology ................................................................................................................ 25 Regional Assets and Services ........................................................................................................ 27 Technical Services ......................................................................................................................... 29 Engineering .............................................................................................. , ..................................... 31 Operations and Maintenance ............................................................................................ , ........... 33 Wastewater Treatment Process ......................................................................... 35 3. AIR Chemil clean 1 encloslLIDS PROCESSING LAND APPUCATION Is removed during the treatment processes are pumped into . ;ters where they undergo natural decomposition for 20-30clays. 2. CHEMICAL ADDITION lhe solids convert to a gas mostly made up 01 methane which Is Hydrogen peroxide is added !o U1e. incomln~0 our o~n energy recovery lacllitles. ' ' to help reduce hydrogen sulfide and control Chemical coagulants are added to the wast! to enhance the primary settling process. Wastewater passes through bar screens that trap and remove large and nonorganic materials. It then flows into grit chambers where the heaviest materials, such as egg shells, coffee grounds and sand, settle out. The materials removed during these processes are sent to a sanitary landfill. MPING STATION ·om both plants is The remaining solids are pumped to dewatering facilities to achieve a 23 percent solid material (with a cake-llke consisteney) called blosolids. The biosojlds are recycled for direct land application as a soil amendment or used to make fertilizer. Biosolids can also be composted or sent to a landfill if necessary. 7. ENERGY RECOVERY In our Central Power Generation Facility, the methane gas derived from the digesters is used to power engine-generator units that produce the electricity used as the energy source to operate both treatment plants. r disinfection and dechlorination pipe. This facility has the capacity to pump ated wastewater a day, which helps us handle will meet our capacity needs for many years.