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HomeMy WebLinkAbout05-28-2008 MinutesOrange County Sanitation District MINUTES BOARD MEETING May 28,2008 ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 Minutes of Board Meeting 05/28/08 Page 2 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on May 28, 2008 at 6:30 p.m., in the District's Administrative Offices. Following the Pledge of Allegiance and invocation, the roll was called and the Clerk of the Board reported a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X James M. Ferryman, Chair Bob Ooten X Doug Davert, Vice Chair Jim Palmer X Charles Antos Gordon Shanks X Don Bankhead Sharon Quirk X Larry Crandall Gus Ayer X Bill Dalton Steven Jones A Jon Dumitru Carolyn Cavecche X Rose Espinoza James Gomez X Richard Freschi Brad Reese X Don Hansen Jill Hardy X Phil Luebben Prakash Narain A Patsy Marshall Jim Dow X Darryl Miller Douglas Reinhart X Roy Moore Ron Garcia X Joy Neugebauer AI Krippner X Chris Norby Janet Nguyen Ken Parker X Catherine Driscoll X Christina Shea Steven Choi X David Shawver David Cadena X Harry Sidhu Lucille Kring A Sal Tinajero David Benavides X Constance Underhill Joseph Aguirre X Mark Waldman Henry Charoen X Don Webb Leslie Daigle X Jim Winder John Anderson STAFF MEMBERS PRESENT: Bob Ghirelli, Assistant General Manager; Penny Kyle, Clerk of the Board; Nick Arhontes; Jim Herberg; Ed Torres; Lorenzo Tyner; Rich Castillon; Daisy Covarrubias; Lilia Kovac; Juanita Skillman; Paula Zeller OTHERS PRESENT: Brad Hagin, General Counsel; Bill Garvey; Robert Grantham; Larry Head, Art Perry; Gino Rampagna, Chris Rouk; Toby Weissert Minutes of Board Meeting 05/28/08 Page 3 PUBLIC COMMENTS Mr. Chris Rouk of NEC spoke against Agenda Item 11 (a), awarding a telephone system contract to Shore Tel, citing the District's request for information advertisement was inadequate. REPORT OF THE CHAIR Chair Ferryman asked for the meeting to be adjourned in memory of Ethel Mae Castelli, Jim Ruth's mother-in-law's honor, who passed away on May 22, 2008. Resolutions of commendation were approved by the Board of Directors for former OCSD Board Chair Steve Anderson; Orange County Water District's 75th Anniversary; and for Ron Wildermuth for his service as Communications Manager at the Orange County Water District. Mr. Ferryman also reviewed the standing committee meeting schedule for the month of June; and reported on a CASA meeting he attended April 23rd -April 25th RE PORT OF THE GENERAL MANAGER Assistant General Manager, Bob Ghirelli, referred to the General Manager's monthly report, and recognized Lorenzo Tyner, Director of Finance and Administrative Services, for an update on the refunding of Certificates of Participation. REPORT OF THE GENERAL COUNSEL General Counsel, Brad Hagin, did not give a report. NOMINATIONS FOR CHAIR AND VICE CHAIR OF THE BOARD OF DIRECTORS This being the annual meeting fixed by the Board at which nominations are to be made for the office of Chair and Vice Chair of the Orange County Sanitation District, the General Counsel declared the nominations open. Director Doug Davert was then nominated as a candidate for the office of Chair of the Orange County Sanitation District. Rules of Procedure for the Conduct of Business allow for a vote the same day as nominations, in the event there is only one nominee for each position. The vote was polled and the Clerk of the Board cast the unanimous ballot for Director Doug Davert as the Chair of the Orange County Sanitation District Director Larry Crandall was then nominated as a candidate for the office of Vice Chair of the Orange County Sanitation District. A vote was polled and the Clerk of the Board cast the unanimous ballot for Director Larry Crandall as the Vice Chair of the Orange County Sanitation District. Minutes of Board Meeting 05/28/08 Page 4 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 Totals 04/15/08 04/30/08 $15,168,924.08 $20,821 ,921.90 Director Hansen abstained from discussion and voting on Warrant No. 99990. Director Shawver abstained from discussion and voting on Warrant No. 10116. Directors Shea and Sidhu abstained from discussion and voting on all warrants. Abstentions were pursuant to California Government Code Section 84308. 8. a. CONSENT CALEND AR MOVED, SECONDED AND DULY CARRIED: Order the minutes for the regular meeting held on April 23, 2008, and the special meeting held on May 14, 2008 to be filed and deemed approved, as mailed. Directors Driscoll and Neugebauer abstained. b. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 08-07, authorizing the General Manager to Grant Easements at no cost to Utilities serving Orange County Sanitation District facilities. COMMITTEE REPORTS AND RE COMMENDED ACTIONS 9. STEERING COMMITTEE Board Chair, Jim Ferryman, reported the committee received an update from federal lobbyists. The Steering Committee considered a request from the Building Association regarding connection fees, and a proper memorial for Steve Anderson to be presented to the Board for approval at the June meeting. Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order Steering Committee Minutes for the meeting held on April 23, 2008, to be filed. Non-Consent Calendar b. Item was pulled from the agenda by the Steering Committee. Minutes of Board Meeting 05/28/08 Page 5 10. OPERATIONS COMMITTEE Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order Operations Committee Minutes for the meeting held on May 7, 2008, to be filed. b. MOVED, SECONDED AND DULY CARRIED: Authorize the General Manager to sell surplus emission reduction credits via negotiated contracts with ICAP United, Inc. and Cantor C02e, LP, in a form approved by General Counsel. c. MOVED, SECONDED AND DULY CARRIED: 1) Approve Change order No. 5 to the contract issued to Hill Brothers Chemical Company for the Purchase of Magnesium Hydroxide, Specification No. C-2005-244, authorizing a unit rate increase of $0.20 per gallon, for a total unit price of $1.84 per gallon, plus applicable sales tax for a one-year period effective July 1, 2008 through June 30, 2009, and all other terms of the contract shall remain in effect (P.O. 102362 OB); and, 2) Authorize a 10% unit cost escalation contingency. d. MOVED, SECONDED AND DULY CARRIED: 1) Authorize the General Manager to approve renewal of a contract, with Neutron Products, Inc., for Purchase of Anionic Polymer, Specification No. C-2006-273, authorizing a price increase of $.15/lb, for a total price of $3.00/lb, for a one-year period effective September 1 , 2008 through August 31, 2009 (P.O. 102634-0B); and, 2) Authorize a 10% cost escalation contingency. e. MOVED, SECONDED AND DULY CARRIED: 1) Award a contract to Olin Chlor Alkali Products, for the Purchase of Sodium Hydroxide (Caustic Soda) 25% solution, Specification No. C-2008-371 BD, for delivery to the plants for the period July 1, 2008 through June 30, 2009, for a unit price of $459.90 per dry ton plus freight of $200.00 per dry ton, plus applicable sales tax for an estimated annual amount of $431,23 5.00, with four one-year renewal options; and, 2) Authorize a 10% annual cost escalation contingency. 3) Award a contract to Basic Chemical Solution, LLC, for the Purchase of Sodium Hydroxide (Caustic Soda) 50% solution, Specification No. C-2008-371 BD, for delivery in the collection system, for the period July 1, 2008 through June 30, 2009, for a unit price of $539.00 per dry ton, subject to the Harriman Chemsult Limited Index, plus freight of $39.48 per dry ton, plus applicable sales tax for an estimated annual amount of $235,075.00 with four one-year renewal; and, 4) Authorize an 8% quarterly cost escalation contingency. Minutes of Board Meeting 05/28/08 Page 6 f. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 1 to Cooperative Projects Grants Program Contract No. 0604 with Midway City Sanitary District, providing for an 11-month time extension. g. MOVED, SECONDED AND DULY CARRIED: 1) Approve a budget increase of $128,100 for Rehabilitation of District Siphons, Contract No. 2-68, for a total budget of $7,854, 100; and, 2) Approve a contingency increase of $136,108 (3%) to the construction contract with Ken Thompson, Inc., for Rehabilitation of District Siphons, Contract No. 2-68, for a total contingency of $363,008 (8%). h. MOVED, SECONDED AND DULY CARRIED: Approve a contingency increase of $623,114 (17%) to the Professional Design Services Agreement with Earth Tech, Inc., for Sludge Digester Rehabilitation at Plant No. 1, Job No. P1-1 00, for a total contingency of $989,652 (27%). i. MOVED, SECONDED AND DULY CARRIED: Approve a contingency increase of $2,003,323 (18%) to the Professional Design Services Agreement with HDR, Inc. for Sludge Dewatering and Odor Control at Plant No. 1, Job No. P1-1 01, for a total contingency of $3,116,281 (28%). j. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No.8 to the Professional Services Agreement with Integrated Program Management Consultants, a joint venture of Parsons Water and Infrastructure, Inc., and CH2M Hill, Inc., for Program Management Services for the Capital Improvement Program authorizing: 1) Establish an amount not to exceed $16,987,271 for year seven (Fiscal Year 2008/09) of the ten-year contract; and, 2) Increase the total amount of the ten-year contract to an amount not to exceed $93,077,246. Non-Consent Calendar k. No items were considered. 11. ADMINISTRATION COMMITIEE Consent Calendar a. Item pulled for discussion. b. MOVED, SECONDED AND DULY CARRIED: Order Administration Committee Minutes for the meeting held on May 14, 2008, to be filed. Minutes of Board Meeting 05/28/08 Page 7 c. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 08-06, Adopting the Updated Records Management Program Policies and Procedures, Retention Schedule and Record Series Definitions for the District's Records Management Program, Authorizing Destruction of Obsolete Records, and Repealing Resolution No. OCSD 07-08. Non-Consent Calendar d. Agenda Item 11(a): Concern was expressed by some directors about the process in acquiring proposals and evaluation of equipment, and staff responded to their questions and concerns. MOVED, SECONDED AND DULY CARRIED: 1) Approve a sole source purchase order to Shore Tel Inc. for the purchase of hardware and software to replace OCSD's telephone system, for a total amount of $375,460; and, 2) Approve a 5% contingency ($1 8,775). By a show of hands, with seven opposing the motion, the item was approved. 12. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order Joint Groundwater Replenishment System Steering Committee Minutes for the meeting held on April 14, 2008, to be filed. b. MOVED, SECONDED AND DULY CARRIED: 1) Approve Amendment No. 15 to the Professional Services Agreement with Camp Dresser & Mc Kee Inc. for the Groundwater Replenishment System, Job No. J-36, providing for an annual cost-of-living adjustment, additional permitting services, and additional work associated with the extension of the construction contract for an additional amount of $86,267, increasing the total amount not to exceed $35,052,728 to be cost-shared equally with the Orange County Water District ($43, 133.50); and, 2) Approve Amendment No. 9 to the Professional Services Agreement with Montgomery Watson Harza for the Groundwater Replenishment System, Job No. J-36, providing for an annual cost-of-living adjustment and additional construction management services for an additional amount of $170,799, increasing the total amount not to exceed $15,307,661 to be cost-shared equally with the Orange County Water District ($85,399.50). Minutes of Board Meeting 05/28/08 Page 8 GWRSSC Non-Consent Calendar c. No items were considered. NON-CONSENT CALE NDAR 13. Ordinance No. OCSD-36, An Ordinance of the Board of Directors of Orange County Sanitation District, Establishing Capital Facilities Capacity Charges; Adopting Miscellaneous Charges and Fees Relating to Industrial Charges, Source Control Permittees and Wastehaulers; and Repealing Article I, Ill, IV and V of Ordinance No. OCSD-32: Adopting Revised Table A Re Capital Facilities Capacity Charges (Formerly Table C), Revised Table C Re Supplemental Capital Facilities Capacity Charges (Formerly Table E), Revised Table D Re Administrative Fees And Charges Relating To Permittees (Formerly Table F), Redesignated Table E (Formerly Table G), Revised Table F Re Class I And Class II Permittees and Special Purpose Discharge Permittees Charges For Use (Formerly Table H), Revised Table G Re Wastehauler Charges For Use (Formerly Table 1), And Reaffirming All Other Charges. OPEN PUBLIC HEARING: General Counsel declared the public hearing opened at 6:58 p.m. The Clerk of the Board reported seven phone calls were received requesting information only. Director of Finance and Administrative Services, Lorenzo Tyner, provided a brief overview of the proposed ordinance changing to the net cost of service methodology for permittees to be consistent with the current rate structures for all other customers. PUBLIC COMMENTS: No public comments were received. CLOSE PUBLIC HEARING: General Counsel declared the public hearing closed at 7:00 p.m. a. MOVED, SECONDED AND DULY CARRIED: Read Ordinance No. OCSD-36 by title only and waive reading of said entire ordinance. b. MOVED, SECONDED AND DULY CARRIED: Adopt Ordinance No. OCSD-36. Ayes: Jim Ferryman, Chair, Charles Antos; Larry Crandall; Bill Dalton; Doug Davert; Rose Espinoza; Don Hansen; Phil Luebben; Darryl Miller; Roy Moore; Chris Norby; Joy Neugebauer; Catherine Driscoll; Dave Shawver; Christina Minutes of Board Meeting 05 /28 /08 Page 9 Shea; Constance Underhill; Mark Waldman; Don Webb; Jim Winder Nays: Don Bankhead; Rich Freschi; Harry Sidhu opposed. Abstention: None Absent: Jon Dumitru; Patsy Marshall; Sal Tinajero 14. Ordinance No. OCSD-37, An Ordinance of the Board of Directors of Orange County Sanitation District, Establishing Wastewater Discharge Regulations and Repealing Ordinance No. OCSD-31: Adopting Revised Article 1, Section 1 02; Article 3, Sections 302.6, Section 303, and 303.6; and, Reaffirming All Other Charges. OPEN PUBLIC HEARING: General Counsel declared the public hearing opened at 7:03 p.m. The Clerk of the Board announced seven phone calls were received requesting information. Lorenzo Tyner explained the proposed ordinance would provide replacement of property tax credits to permittees with the net cost of service billing methodology. PUBLIC COMMENTS: No public comments were received. CLOSE PUBLIC HEARING: General Counsel declared the public hearing closed at 7:05 p.m. a. MOVED, SECONDED AND DULY CARRIED: Read Ordinance No. OCSD-37 by title only and waive reading of said entire ordinance. b. MOVED, SECONDED AND DULY CARRIED: Adopt Ordinance No. OCSD-37. Ayes: Jim Ferryman, Chair, Charles Antos; Larry Crandall; Bill Dalton; Doug Davert; Rose Espinoza; Don Hansen; Phil Luebben; Darryl Miller; Roy Moore; Chris Norby; Joy Neugebauer; Catherine Driscoll; Dave Shawver; Christina Shea; Constance Underhill; Mark Waldman; Don Webb; Jim Winder Nays: Don Bankhead; Rich Freschi; Harry Sidhu opposed. Abstention: None Absent: Jon Dumitru; Patsy Marshall; Sal Tinajero Minutes of Board Meeting 05/28/08 Page 10 15. Ordinance No. OCSD-38, An Ordinance of the Board of Directors of Orange County Sanitation District, Establishing Local Sanitary Sewer Service Charges: a. MOVED, SECONDED AND UNANIMOUSLY CARRIED: Read Ordinance No. OCSD-38 by title only and waive reading of said entire ordinance. b. MOVED, SECONDED AND DULY CARRIED: Introduce Ordinance No. OCSD-38, and pass to second reading and public hearing on June 25, 2008. Director Davert opposed. 16. CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957(b)(1 ): The Board convened in closed session at 7:13 p.m. pursuant to Government Code Section 54956.9(c). RECONVENE IN REGULAR SESSION: The Board reconvened in regular session at 7:15 p.m. ADJOURNMENT: The Chair declared the meeting adjourned at 7:18 p.m. in memory of Ethel Mae Castelli. Clerk of the Board Orange County Sanitation District H:\dept\agenda\Board Minutes\2008 Board Minutes\052808 minutes.docx