HomeMy WebLinkAbout08-22-2001 Board MinutesOrange County Sanitation District
MINUTES
BOARD MEETING
AUGUST 22, 2001
ADMINISTRATIVE OFFICES
10844 ELLIS AVENUE
FOUNTAIN VALLEY, CALIFORNIA 92708-7018
Minutes for Board Meeting
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ROLL CALL
A regular meeting of the Board of Directors of the Orange County Sanitation District, was
held on August 22, 2001, at 7:00 p.m., in the District's Administrative Offices. Following the
Pledge of Allegiance and invocation the roll was called and the Secretary reported a quorum
present as follows:
ACTIVE DIRECTORS ALTERNATE DIRECTORS
x Norman Z. Eckenrode, Chair Constance Underhill
x Peter Green, Vice Chair Dave Garofalo
x Steve Anderson Steve Simonian
x Don Bankhead Jan Flory
x Shawn Boyd John Larson
x Brian Brady Darryl Miller
x Guy Carrozza Larry Crandall
A Brian Donahue Bill Estrada
James M. Ferryman x Arlene Schafer
John M. Gullixson x Michael Duvall
x Alice B. Jempsa Arthur DeBolt
x Tony Kawashima Tracy Worley
x Beth Krom Mike Ward
x Mark Leyes Bruce Broadwater
x Shirley McCracken Tom Daly
x Pat McGuigan Alberta Christy
x Roy Moore Marty Simonoff
x Mark A. Murphy Joanne Coontz
x Joy Neugebauer Grace Epperson
x Russell Patterson Richard A. Freschi
x Anna L. Piercy Tim Keenan
x Tod Ridgeway Gary Adams
x Jerry Sigler Jim Dow
x Jim Silva Chuck Smith
x Paul Walker Kenneth Blake
STAFF MEMBERS PRESENT: Blake P. Anderson, General Manager; Penny Kyle, Board
Secretary; Bob Ghirelli; Dave Ludwin; Patrick Miles; Lisa Murphy; Gary Streed; Lisa Tomko; Mike
Moore; Layne Baroldi; Mark Tomko; Jim Colston; Juanita Skillman; Dierdre Hunter; Brian Bingman;
Ryal Wheeler; Sonja Wassgren
OTHERS PRESENT: Thomas L. Woodruff, General Counsel; Alternate Director Alberta Christy;
Don Hughes; Jamel Demir; Andrew Dickman; Jim Sullivan; Fred Froushiam; Terry Lane; Greg
Jewell; Joey Racano; Kris Hardeman; Irwin Haydock; Jan Vandersloot; Eileen Murphy; Don
Schulz; Doug Korthof; Don Slaven; Don McGee; Dennis Sato; Curtis Zavodny; Dennis Baker;
Chris Hillman; Dean Reinemann; Kimo Look
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PUBLIC COMMENTS
The following persons spoke about ocean discharge issues and expressed their opposition to the
waiver: Doug Korthof; Greg Jewell; Dennis Baker; Jan Vandersloot; Larry Porter; Kris Hardeman;
Cindy Huynh; Joey Racano; Don Slaven; Curtis Zavodny; Dennis Sato; Don McGee; Eileen
Murphy; Irwin Haydock; Bill Gregory; Dean Reinemann
REPORT OF THE CHAIR
Chair Eckenrode recognized Andrew Dickman, a student at the Orange County School of Arts,
who created the District's mural for the booth at the Orange County Fair.
It was then announced that the Resources Agency and the State Water Resources Control Board
have selected the Santa Ana River Watershed Project as one of ten projects for study under a pilot
project included in AB2117. Detailed information was included in the General Manager's monthly
letter.
A copy of a letter of support on the groundwater replenishment system project that had been
received from the Los Angeles Department of Water and Power had been included in the
Directors' meeting folders that evening.
Chair Eckenrode announced the Urban Runoff Ad Hoc Committee would be meeting on
Wednesday, August 291h at 4:00 p.m. The members of the committee are: Peter Green, Shawn
Boyd, Tod Ridgeway, Steve Anderson, Don Bankhead, Beth Krom, Jim Silva and Norm
Eckenrode.
The Directors were reminded that if they left the Boardroom during the meeting for conflict of
interest or similar purposes during a vote, they must notify the Board Secretary or other minute
taker that their action should be reflected in the minutes. Otherwise, temporarily leaving the room
will not be noted in the minutes.
REPORT OF THE GENERAL MANAGER
The General Manager had no report
REPORT OF THE GENERAL COUNSEL
General Counsel Thomas L. Woodruff indicated a need to add an additional item needing immediate
action, and the need for said action came to the attention of the District subsequent to the posting of the
Agenda. He reported that an additional item could be added pursuant to Government Code Section
54954.2(b) upon a two-thirds vote of the Directors.
MOVED, SECONDED AND DULY CARRIED: That the matter re Church Mutual Insurance Co. v.
Orange County Sanitation District, et al., Orange County Superior Court Case No. 01 CC08942, be
added to the agenda; and,
MOVED, SECONDED AND DULY CARRIED: Receive and file Summons and Complaint, Church
Mutual Insurance Co. v. Orange County Sanitation District, et al., Orange County Superior Court
Case No. 01 CC08942, re Complaint in Subrogation for Damages for alleged damages in
connection with a sewage back-up at Hope Christian Church in Tustin; and authorize General
Counsel to appear and defend the interests of the District.
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Mr. Woodruff briefly reported on the CASA conference recently held in San Diego. He reported there
were a number of legislative matters pending that may have an impact on the District and the cities,
including Public Records Act issues and Brown Act amendments. The Directors will be advised when
the issues are finalized.
APPROVAL OF MINUTES
The Chair ordered that the minutes of the workshop held July 14, 2001 and the regular meeting
held July 18, 2001 be deemed approved, as mailed.
Directors Ridgeway and Krom abstained.
RATIFICATION OF PAYMENT OF CLAIMS
MOVED, SECONDED AND DULY CARRIED: Ratify payment of claims set forth on exhibits "A"
and "B", attached hereto and made a part of these minutes.
ALL DISTRICTS 07/15/01 07/31/01
Totals $10,003,478.00 $18,246,660.22
Director Leyes abstained.
9. a.
CONSENT CALENDAR
MOVED, SECONDED AND DULY CARRIED: Receive and file Summons and
Petition for Order Permitting Late Claim Against Governmental Entity re Edison
Mays, et al. v. Orange County Sanitation District, et al., Orange County Superior
Court Case No. 01CC09746, and authorize General Counsel to appear and defend
the interests of the District.
b. MOVED, SECONDED AND DULY CARRIED: Approve Assignment of Lease from
Village Nurseries, L.P., a California Limited Partnership to Village Nurseries
Wholesale, LLC, a California limited liability company (Specification No. L-013-1) in
a form approved by General Counsel.
c. MOVED, SECONDED AND DULY CARRIED: (1) Receive and file petition from
Mark Sandford, Mark Moshayedi, Greg Winner and Kathleen Yang requesting
annexation of 4. 701 acres to the Orange County Sanitation District (District), in the
vicinity of Hillside Drive and Meads Avenue in the unincorporated area of Orange
Park Acres; and (2) Adopt Resolution No. OCSD 01-14 authorizing initiation of
proceedings to annex said territory to the District (Proposed Annexation No.
OCSD-14-Meads Annexation).
d. MOVED, SECONDED AND DULY CARRIED: (1) Receive and file petition from
Jerry Tone requesting annexation of 39.195 acres to the Orange County Sanitation
District (District) in the vicinity of Seal Beach Boulevard and Forrestal Lane in the
City of Seal Beach; (2) Approve Agreement deferring annexation fees with Hellman
Properties; and (3) Adopt Resolution No. OCSD 01-15, authorizing initiation of
proceedings to annex said territory to the District (Proposed Annexation
No. OCSD-20 -Hellman Properties Annexation).
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NON-CONSENT CALENDAR
11. DRAFT STEERING COMMITTEE MINUTES: A verbal report was presented by Director
Eckenrode, Chair of the Steering Committee, re the August 22, 2001 meeting.
Committee Chair Eckenrode reported that a presentation was made on the benefits of a
countywide leadership retreat for elected officials. The Steering Committee authorized the
General Manager to provide $5,000 to fund a countywide leadership retreat for elected
officials and to confirm participation in the retreat by the District. The Chair then asked for
the Board's concurrence. Directors Bankhead, Leyes, Murphy and Patterson opposed.
The Chair ordered the draft Steering Committee Minutes for the meeting held on July 18,
2001 to be filed.
c. MOVED, SECONDED AND DULY CARRIED: Receive verbal report of Steering
Committee and proposed Memorandum of Understanding with Santa Ana
Watershed Project Authority re Santa Ana River Interceptor Relocation and
Protection, Contract No. 2-41.
12. DRAFT OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE
MINUTES: A verbal report was presented by Director McGuigan, Chair of the Operations,
Maintenance and Technical Services Committee, re the August 1, 2001 meeting.
The Chair ordered the draft Operations, Maintenance and Technical Services Committee
Minutes for the meeting held on August 1, 2001 to be filed.
c. MOVED, SECONDED AND DULY CARRIED: (1) Authorize the General
Manager to initiate and conduct due diligence research of the Inland
Composting and Organic Recycling site for the use as a biosolids
composting facility in an amount not to exceed $55,000;
(2) Authorize the General Manager to deposit into an escrow account
(ADAM431) with First American Title Company $15,000 per month for lost
opportunity compensation, for a period of up to three months, in order to
extend the escrow during the performance of due diligence on the Inland
Composting and Organic Recycling site;
(3) Approve an Agreement with California Soil Products to manage a
minimum of 100 wet tons per day of the District's biosolids through the
production of a Class A biosolids product for a term of five years with two
additional five-year options for a fee of $32. 70 per wet ton for an annual
amount not to exceed $2,550,000;
(4) Enter into negotiations with Tule Ranch to pursue an Agreement to
produce and manage a chemically stabilized Class A biosolids product at
Tule Ranch; and,
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(5) Approve an Agreement with Waste Markets for an emergency biosolids
management option to landfill up to 400 wet tons of biosolids per day for a
fee of $56.50 per wet ton and a guarantee of landfill access fee of $600 per
month for a term of 18 months.
Director Kawashima abstained on Item 12(c)(2).
13. DRAFT PLANNING, DESIGN AND CONSTRUCTION COMMITTEE MINUTES: A verbal
report was presented by Director Patterson, Vice Chair of the Planning, Design and
Construction Committee, re the August 2, 2001 meeting.
The Chair then ordered the draft Planning, Design and Construction Committee Minutes for
the meeting held August 2, 2001 to be filed.
c. MOVED, SECONDED AND DULY CARRIED: Accept Chlorine Building Mechanical
Equipment Demolition at Plant No. 1, Job No. J-60, as complete, authorizing
execution of the Notice of Completion, and approving the Final Closeout Agreement
with Harbor Bay, Inc.
d. MOVED, SECONDED AND DULY CARRIED: (1) Ratify Change Order No. 4 to
Goldenwest Street Trunk Sewer Replacement, Contract No. 11-17-3, and Heil
Avenue Interceptor, Contract No. 11-20, with Ken Thompson, Inc., authorizing an
addition of $45,963.10, and 78 calendar days, increasing the total contract amount
to $6,531,963.1 O; (2) Ratify Change Order No. 5 for an Adjustment of Engineer's
Quantities authorizing a deduction of $152,380.29, decreasing the total contract
amount to $6,379,582.81; and (3) Accept Goldenwest Street Trunk Sewer
Replacement, Contract No. 11-17-3, and Heil Avenue Interceptor, Contract
No. 11-20, as complete, authorizing execution of the Notice of Completion and
approving the Final Closeout Agreement.
e. MOVED, SECONDED AND DULY CARRIED: Approve the sole source purchase of
Woodward digital engine governors from Hatch & Kirk Incorporated for an amount
not to exceed $112,860, in connection with Central Generation Automation, Job
No. J-79.
f. MOVED, SECONDED AND DULY CARRIED: Approve Addendum No. 4 to the
Professional Services Agreement with Carollo Engineers for design of Headworks
Improvements at Plant No. 2, Job No. P2-66, for an additional amount of
$12,628,299, increasing the total amount not to exceed $13,277,372.
g. MOVED, SECONDED AND DULY CARRIED: Approve Addendum No. 1 to the
Professional Services Agreement with Black & Veatch Corporation for Effluent
Pump Station Annex, Job No. J-77, providing for additional design engineering
services in the amount of $1,273, 113, for a total amount not to exceed $3,481,923.
h. MOVED, SECONDED AND DULY CARRIED: Authorize the General Manager to
negotiate the sale of an excess portion of the "A" Street Pump Station in connection
with Rehabilitation of the "A" Street Pump Station, Contract No. 5-52, to the City of
Newport Beach.
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i. MOVED, SECONDED AND DULY CARRIED: Authorize the General Manager to
negotiate the purchase of real property located at 1514 West Balboa Boulevard,
Newport Beach, for Rehabilitation of the 141h Street Pump Station, Contract
No. 5-51.
j. MOVED, SECONDED AND DULY CARRIED: Approve Addendum No. 1 to the
Professional Services Agreement with RBF Consulting for additional design
engineering services for the Carbon Canyon Dam Sewer and Pump Station
Abandonment, Contract No. 2-24-1, for an additional amount of $136,000,
increasing the total amount not to exceed $210,000.
k. MOVED, SECONDED AND DULY CARRIED: Authorize the General Manager to
negotiate Addendum No. 2 with Fluor Signature Services for Phase II of the Space
Allocation and Interior Renovation at Plant No. 1, Job No. J-84, providing for a
detailed conceptual design.
14. DRAFT FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE
MINUTES: A verbal report was presented by Director McCracken, Chair of the Finance,
Administration and Human Resources Committee, re the August 8, 2001 meeting.
The Chair then ordered the draft Finance, Administration and Human Resources
Committee Minutes for the meeting held August 8, 2001 to be filed.
c. MOVED, SECONDED AND DULY CARRIED: Receive and file Treasurer's Report
for the month of July 2001.
d. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 01-16,
amending Resolution No. OCSD 98-33, amending Human Resources Policies and
Procedures Manual.
e. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 01-17,
Declaration of Official Intent to Reimburse Certain of the District's Capital Reserve
Funds for Expenditures Made in Advance for FY 2001-02 Capital Improvement
Projects from Proceeds of a Future Long-Term Financing.
f. MOVED, SECONDED AND DULY CARRIED: Receive and file Quarterly
Investment Management Program Report for the period April 1, 2001 through June
30, 2001.
g. MOVED, SECONDED AND DULY CARRIED: Authorize staff to issue a purchase
contract to Carollo Engineers for Phase II and Phase Ill of the Coordinated
Commercial Enterprise Study, for a total amount not to exceed $113,000.
15. DRAFT JOINT GROUNDWATER REPLENISHMENT SYSTEM COOPERATIVE
COMMITTEE MINUTES: A verbal report was presented by Director Anderson,
representative on the Joint Groundwater Replenishment System Cooperative Committee,
re the meeting held on August 13, 2001.
The Chair ordered the draft Joint Groundwater Replenishment System Cooperative
Committee Minutes for the meeting held on July 9, 2001 and July 30, 2001 to be filed.
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Director Eckenrode abstained approving minutes for July 9, 2001.
c. MOVED, SECONDED AND DULY CARRIED: (1) Approve agreement between
Orange County Water District (OCWD) and the Orange County Flood Control
District (OCFCD), providing for construction of the Groundwater Replenishment
(GWR) System Pipeline within OCFCD right-of-way, and providing for payment of
OCFCD inspection fees at an estimated cost of $100,000, with OCWD and Orange
County Sanitation District (OCSD) having equal shares in the amount of $50,000;
and,
(2) Approve agreement between OCWD and River View Golf (RVG), providing for
construction of the GWR System Pipeline within the RVG course, and providing for
payment to RVG for lost revenue, advertising, legal charges, and restoration for an
estimated amount of $255,000 with OCWD and OCSD having equal shares in the
estimated amount of $127,500.
16. APPROVE CONTRACT WITH JAMISON ENGINEERING CONTRACTORS. INC. FOR
SANTAANA RIVER INTERCEPTOR (SARI) EMERGENCY REPAIRS AND
MAINTENANCE. CONTRACT NO. 2-41-2
Dave Ludwin, Director of Engineering, reported that a portion of the SARI line is within the
floodplain of the Santa Ana River in the Yorba Linda area. When it was constructed
approximately 25 years ago, the line had about 20 feet of cover over it. The last several
years water flows released from Prado Dam have eroded the cover down to three feet in
some areas. Various studies, environmental documentation, and engineering work have
been conducted since 1994 to find a way to protect or relocate the line. Design was near
completion with projected costs near $90 million. Several easements were needed from
residents in the Yorba Linda area who objected to the realignment. In March 2001, the
Board of Directors directed staff to stop the design. Staff is taking another look at various
alternatives to see if costs can be reduced or find a better alignment, which will delay
completion of the project until 2005.
In the interim Mr. Ludwin reported there is a need to protect the existing line within the flood
plain from high flows that come down the river in the wintertime. The request to issue a
sole source contract will allow construction of access roads to the manholes and minor
construction work to help reinforce the existing manholes within the riverbed so the line will
be protected for the coming winter. Work cannot start until September 15th because of
endangered bird species that nest in the area, and all work must be complete by
December 1st in anticipation of winter flows, thus a request to award a sole source contract
to start construction within the next few weeks is being requested.
In response to Directors' questions regarding SAWPA's responsibility for a portion of the
costs, Mr. Ludwin stated that SAW PA is responsible for 75% of the costs but currently there
is not a commitment from SAWPA to pay their portion for this project. General Counsel is
currently working with SAWPA to develop a memorandum of understanding (MOU).
SAWPA is demanding equal ruling authority on the project and attempting to modify the
existing agreement, which was approved in 1972. It was reported that direction was given
by the Steering Committee to go forward with General Counsel's draft of the MOU that
includes verbiage that if there be an impasse between the two parties, the District's
decision would prevail.
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MOVED, SECONDED AND DULY CARRIED: (1) Approve the transfer of $600,000 from
the Santa Ana River Interceptor (SARI) Relocation and Protection, Contract No. 2-41
approved budget to the Santa Ana River Interceptor Emergency Repairs and Maintenance,
Contract No. 2-41-2; and (2) approve a Sole Source Time and Materials Construction
Contract with Jamison Engineering Contractors, Inc., for Santa Ana River Interceptor
Emergency Repairs and Maintenance, Contract No. 2-41-2, for an amount not to exceed
$450,000.
17. General Counsel Tom Woodruff reported the proposed agreements with Southern
California Edison (SCE) include SCE's agreement to buy from the District at a price that
allows the District to recover the cost of supplemental fuel that may be needed.
MOVED, SECONDED AND DULY CARRIED: Authorize the General Manager to execute
contract amendments to the existing "As Available Capacity and Energy Power Purchase
Agreements" with Southern California Edison, as follows, in a form approved by General
Counsel:
• Amendment No. 1 To Power Purchase Agreement -QFID 2640 (for Plant 1)
• Agreement Amending Amendment No. 1 To Power Purchase Agreement -QFID 2640
(for Plant 1)
• Amendment No. 1 To Power Purchase Agreement -QFID 1098 (for Plant 2)
• Agreement Amending Amendment No. 1 To Power Purchase Agreement -QFID 1098
(for Plant 2)
18. ESTABLISHING A POLICY AND PROCEDURE FOR DISCLOSURE OF CONTACTS OR
COMMUNICATIONS BETWEEN BOARD MEMBERS OF PROSPECTIVE
CONTRACTORS BIDDING FOR WORK IN CONNECTION WITH THE GROUNDWATER
REPLENISHMENT SYSTEM
General Counsel gave a brief report on the recommendation of the District's Joint
Cooperative Committee members and the Steering Committee for a policy requiring
disclosure of contact with vendors regarding the groundwater replenishment system
project. The draft resolution only refers to the groundwater replenishment system project
but could include all District projects if desired. The resolution, as drafted, has no
enforcement mechanisms to penalize for violation. The resolution provides that if a
Director violates the policy requiring the disclosure of contacts with a consultant, then the
contract awarded to the consultant can be set aside. The agreements with the vendors
would need to include a provision that would stipulate any contacts with Directors would
need to be reported.
Directors entered into a lengthy discussion about the need for a disclosure policy. General
Counsel answered questions on reporting requirements and the possibility of putting the
reporting responsibilities on potential vendors rather than Directors.
A motion was moved, seconded and duly carried to table the approval of a resolution
establishing policy and procedure for disclosure of contacts or communications between
board members and prospective contractors bidding for work in connection with the
groundwater replenishment system.
Director Anderson abstained. Directors McGuigan, Brady, and Eckenrode opposed.
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19. CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS
54956.9 and 54957.6: The Board convened in closed session at 9:21 p.m., pursuant to
Government Code Section 54957.6, to discuss Agenda Item No. 19 (a)(1 ). Confidential
Minutes of the Closed Session held by the Board of Directors 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 No. 19(a)(1 ).
RECONVENE IN REGULAR SESSION: At 9:37 p.m., the Board reconvened in regular
session.
ADJOURNMENT: The Chair declared the meeting adjourned at 9:40 p.m.
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