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HomeMy WebLinkAbout06-25-2008 MinutesOrange County Sanitation District MINUTES BOARD MEETING June 25, 2008 ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 Minutes of Board Meeting 06/25/08 Page 2 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on June 25, 2008 at 6:30 p.m., in the District's Administrative Offices. Fol l owing the Pledge of Al legiance and invocation, the roll was called and the Clerk of the Board reported a quorum present as foll ows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X James M. Ferryman, Chair Bob Ooten X Doug Davert, Vice Chair Jim Pal mer X Charles Antos Gordon Shanks X Don Bankhead Sharon Quirk X Larry Crandall Gus Ayer X Bill Dalton Steven Jones X Jon Dumitru Carolyn Cavecche X Rose Espinoza James Gomez X Richard Freschi Brad Reese X Don Hansen Jill Hardy X Phil Luebben Prakash Narain X Patsy Marshall Jim Dow X Darryl Miller Douglas Reinhart X Roy Moore Ron Garcia X Joy Neugebauer AI Krippner Chris Norby X Janet Nguyen Ken Parker X Catherine Driscoll X Christina Shea Steven Choi X David Shawver David Cadena X Harry Sidhu Lucille Kring Sal Tinajero X David Benavides X Constance Underhill Joseph Aguirre X Mark Waldman Henry Charoen X Don Webb Leslie Daigl e X Jim Winder John Anderson STAFF MEMBERS PRESENT: Jim Ruth, General Manager; Bob Ghirel li, Assistant General Manager; Penny Kyl e, Clerk of the Board; Nick Arhontes; Jim Herberg; Ed Torres; Lorenzo Tyner; Rich Castillon; Bret Colson; Lilia Kovac; Norbert Gaia; Gail Garrett; Michael Gold; Juanita Skillman; Ryal Wheel er; Chuck Winsor OTHERS PRESENT: Brad Hogin, General Counsel ; Matthew Harper; Monalee Marquis; Bob Ooten Minutes of Board Meeting 06/25/08 Page 3 PUBLIC COMMENTS There were no public comments. REPORT OF THE CHAIR Chair Ferryman presented a resolution of commendation to Director Rich Freschi and thanked him for his dedication and service to the Sanitation District. It was reported that a letter addressed to state representatives was being circulated for signature by all board members present, requesting that special districts' property tax funds are not shifted for the purpose of balancing the State budget. Mr. Ferryman reviewed the July meeting schedule. REPORT OF THE GENERAL MANAGER General Manager, Mr. Jim Ruth, presented a brief report on the proposed budget, the public outreach program, and an update of the SAWPA and IRWD operating agreements. REPORT OF THE GENERAL COUNSEL General Counsel, Brad Hogin, did not give a report. 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 05/15/08 05/31 /08 $17,234,017.8 6 $25,971,110.02 Director Hansen abstained from discussion and voting on Warrant Nos. 10794 and 10963. Director Shawver abstained from discussion and voting on Warrant No. 11299. Directors Nguyen, Shea and Sidhu abstained from discussion and voting on all warrants. Abstentions were pursuant to California Government Code Section 84308 . 7. a. CONSENT CALENDAR MOVED, SECONDED AND DULY CARRIED: Order the minutes for the regular meeting held on May 28 , 2008 , to be filed and deemed approved, as mailed. Director Nguyen abstained. Minutes of Board Meeting 06/25/08 Page 4 b. MOVED, SECONDED AND DUL Y CARRIED: Approve settlement payment of $263,875 in connection with Administrative Civil Liability Complaint No. R8 -2008 -0054 to the Santa Ana Regional Water Quality Control Board as follows: 1. State Water Resources Control Board for $143,875; and, 2. General Manager to direct the remaining balance of $120,000 toward Supplemental Environmental Projects proposed by the Sanitation District and approved by the Santa Ana Regional Water Quality Control Board. c. MOVED, SECONDED AND DUL Y CARRIED: Adopt Resolution No. OCSD 08 -11, Establishing the Annual Appropriations Limit for Fiscal Year 2008 -09, for the Orange County Sanitation District in accordance with the Provisions of Division 9 of Title 1 of the California Government Code. COMMITTEE REPORTS AND RECOMMENDED AC TIONS 8. STEERING COMMITTEE Chair Ferryman reported the Steering Committee had considered an update on the Builders Industry Association request to defer connection fees, as well as approval for two directors to travel to Stockholm, Sweden to attend a water conference and receive a prestigious award in connection with the GWR System. Consent Calendar a. MOVED, SECONDED AND DUL Y CARRIED: Order Steering Committee Minutes for the meeting held on May 28 , 2008 , to be filed. Director Nguyen abstained. b. Item moved to non-consent for consideration. Non-Consent Calendar b. Approve out-of-country travel for a maximum of two Directors to accept the Stockholm Industry Water Award in Stockholm, Sweden, in connection with the Groundw ater Replenishment System project, and authorize travel, lodging and per diem costs to be paid by the Sanitation District. Chair Ferryman reported that additional details had been received by staff identifying expenses, excluding airfare, were offered to be paid by the Stockholm Water Foundation and the Stockholm International Water Institute for two Directors to attend the 2008 World Water Week conference. Minutes of Board Meeting 06/25/08 Page 5 A motion was made and seconded but failed to be approved by a roll call vote count of 19 nays and 6 yeas. A substitute motion was made and seconded to authorize one Director to attend the conference and limiting the stipend for one day, but failed to be approved by a roll call vote count of 13 nays and 12 yeas. It was then: MOVED, SECONDED AND DUL Y CARRIED: Approve out-of-country travel for two Directors to attend the Stockholm International Water Institute Conference in Sweden and accept an award in connection with the Groundwater Replenishment System project, authorizing travel and per diem costs not to exceed $5,000. Directors Dumitru, Luebben, Marshall, Miller, Sidhu, Underhill and Winder opposed. c. MOVED, SECONDED AND DUL Y CARRIED: 1) Adopt Resolution No. OCSD 08 -08 , Establishing a Policy for Naming Facilities and the Placement of Monuments and Other Memorials; and, 2) Dedicate and name the Ellis Pump Station in memory of Past Chair Steve Anderson. 9. OPERATIONS COMMITTEE Consent Calendar a. MOVED, SECONDED AND DUL Y CARRIED: Order Operations Committee Minutes for the meeting held on June 12, 2008 , to be filed. Director Nguyen abstained. b. MOVED, SECONDED AND DUL Y CARRIED: 1) Award a contract to Jones Chemicals Inc., for the Purchase of Sodium Hypochlorite -NaOCI (Bleach) Solution, Specification No. C-2008 -374BD for a unit price of $0.5331 per gallon, plus freight of $0.0600 per gallon, plus applicable sales tax for an estimated amount of $7,295,600 for the contract period August 11, 2008 through August 10, 2009, with four one-year renewal options; and 2) Approve a 10% annual cost escalation contingency. Minutes of Board Meeting 06/25/08 Page 6 c. MOVED, SECONDED AND DUL Y CARRIED: 1) Award a contract to Jones Chemicals Inc, for the purchase of Sodium Bisulfite Solution (NaHS03), Specification No. C-2008 -379BD for contract period August 11, 2008 through August 31, 2009 for a unit price of $0.7539 per gallon plus freight of $0.0600 per gallon, plus applicable sales tax for an estimated amount of $523,38 0 with four one-year renewal options; and, 2) Approve a 10% annual cost escalation contingency. d. MOVED, SECONDED AND DUL Y CARRIED: 1) Award a sole-source contract with US Peroxide, LLC, for the application of a proprietary chemical process which uses hydrogen peroxide regenerated iron for odor and corrosion control, for the period August 1, 2008 through June 30, 2009, for the unit prices of $1.25/gallon delivered, plus tax for ferrous chloride; $1.59/gallon delivered, plus tax for hydrogen peroxide (27%); and $2.8 5/gallon delivered, plus tax for hydrogen peroxide (50%), for an estimated annual amount of $2, 128 ,000; and, 2) Authorize a 1 0% unit cost escalation contingency. e. MOVED, SECONDED AND DUL Y CARRIED: 1) Approve Plans and Specifications for the Temporary Primary Sludge Diversion from Plant 1 to Plant 2, Contract No. P1-101A, on file at the off ice of the Clerk of the Board; 2) Receive and file bid tabulation and recommendation; 3) Reject low bid from Caliagua, Inc. as "Non Responsive" due to its failure to provide the information required under Public Contract Code §4100 et seq. in its Bid; 4) Award a construction contract to Orion Construction Corporation for Temporary Primary Sludge Diversion from Plant 1 to Plant 2, Contract No. P1-101A, for a total amount not to exceed $567,000; and, 5) Approve a contingency of $56,700 (10%). f. MOVED, SECONDED AND DUL Y CARRIED: 1) Approve a Budget increase of $700,000 for Rehabilitation of Westside Pump Station, Contract No. 3-52, for a total budget amount of $9,540,000; 2) Approve Plans and Specifications for the Rehabilitation of Westside Pump Station, Contract No. 3-52, on file at the off ice of the Clerk of the Board; 3) Approve Addendum No. 1 to the plans and specifications; 4) Receive and file bid tabulation and recommendation; Minutes of Board Meeting 06/25/08 Page 7 5) Award a contract to Norman A. Olsson Construction Inc. for the construction of the Rehabilitation of Westside Pump Station, Contract No. 3-52, for a total amount not to exceed $5,885,000; and, 6) Approve a contingency of $294,250 (5%). 10. ADMINISTRATION COMMITTEE Consent Calendar a. MOVED, SECONDED AND DUL Y CARRIED: Order Administration Committee Minutes for the meeting held on June 12, 2008 , to be filed. Director Nguyen abstained. b. Staff requested this item to be pulled for consideration at a future date. c. MOVED, SECONDED AND DUL Y CARRIED: 1) Renew the Sanitation District's Excess General Liability Insurance Program for the period July 1, 2008 through June 30, 2009, in an amount not to exceed $370,525; 2) Renew the Sanitation District's Excess Workers' Compensation Insurance for the period July 1, 2008 through June 30, 2009, with the California State Association of Counties Excess Insurance Authority, at a rate not to exceed $.0030 (estimated premium of $175,998 based on current payroll); 3) Renew the Sanitation District's All-Risk Property and Flood for the period July 1, 2008 through June 30, 2009, in an amount not to exceed $469,1 00; and, 4) Renew the Sanitation District's Boiler & Machinery Insurance Program for the period July 1, 2008 through June 30, 2009, in an amount not to exceed $17,000. d. MOVED, SECONDED AND DUL Y CARRIED: Adopt Resolution No. OCSD 08 -09, Establishing Use Charges for the Fiscal Year 2008 -09 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. Minutes of Board Meeting 06/25/08 PageS Non-Consent Calendar e. MOVED, SECONDED AND DUL Y CARRIED: Approve proposed Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY 2008 -09 and 2009-10 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 Intra-District Joint Equity Purchase/Sale TOTAL 2008-09 $146,771,18 0 490,000 1,506,200 373,657,000 74,623,000 3,961,700 $601 ,009,080 11. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar 2009-10 $154,038 ,030 535,000 1,606,200 228 ,907,000 84,297,030 (2,099,300) $467.283,960 a. MOVED, SECONDED AND DUL Y CARRIED: Order Joint Groundwater Replenishment System Steering Committee Minutes for the meeting held on May 12, 2008 , to be filed. Director Nguyen abstained. NON-CONSENT CALENDAR 12. MOVED, SECONDED AND DUL Y CARRIED: a) Approve Plans and Specifications and Addendum Nos. 1, 2, 3, 4, 5 and 6 for Headworks Rehabilitation/Refurbishment, Job No. P1-71; b) Receive and file bid tabulation and recommendation; c) Award a construction contract to Helix Electric, Inc. for Headworks Rehabilitation/Refurbishment, Job No. P 1-71 , for a total amount not to exceed $3,645,000; and, d) Approve a contingency of $291,600 (8 %). 13. Ordinance No. OCSD-38 , An Ordinance of the Board of Directors of Orange County Sanitation District, Establishing Local Sanitary Sewer Service Charges: OPEN PUBL IC HEARING: General Counsel declared the public hearing opened at 7:22 p.m. Minutes of Board Meeting 06/25/08 Page 9 MOVED, SECONDED AND DUL Y CARRIED: Receive and file 119 written comments in opposition to the sewer service charges. Director of Finance and Administration, Lorenzo Tyner, provided a brief overview of the proposed ordinance which would establish local sanitary sewer service charges in areas located in the City of Tustin and unincorporated areas north of the City of Tustin, which have in the past been subsidized by regional sewer fee ratepayers. PUBL IC COMMENTS: Ms. Monalee Marquis of the city of Tustin stated her opposition to the new sewer service fee. CL OSE PUBL IC HEARING: General Counsel declared the public hearing closed at 7:29 p.m. MOVED, SECONDED AND DUL Y CARRIED: Read Ordinance No. OCSD-38 by title only and waive reading of said entire ordinance. Directors Dumitru and Nguyen opposed. MOVED, SECONDED AND DUL Y CARRIED: Adopt Ordinance No. OCSD-38 . Ayes: Charles Antos; Don Bankhead; David Benavidez; Larry Crandall; Bill Dalton; Rose Espinoza; Jim Ferryman; Rich Freschi; Don Hansen; Patsy Marshall; Darryl Miller; Roy Moore; Joy Neugebauer; Catherine Driscoll; David Shawver; Christina Shea; Constance Underhill; Mark Waldman; Don Webb; Jim Winder Nays: Doug Davert; Jon Dumitru; Phil Luebben; Janet Nguyen; Harry Sidhu Abstention: None Absent: None 14. MOVED, SECONDED AND DUL Y CARRIED: Adopt Resolution No. OCSD 08 -10, directing the County Tax Collector-Treasurer to include local sanitary sewer service charges on the 2008 -09 through 2012-13 property tax bills. ADJOURNMENT: The Chair declared the meeting adjourned at 7:38 p.m. Clerk of the Board Orange County Sanitation District H:\dept\agenda\Board Minutes\2008 Board Minutes\062508 minutes.docx