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HomeMy WebLinkAbout03-28-2018 Board Meeting Minutes03/28/2018 Orange County Sanitation District MINUTES BOARD MEETING March 28, 2018 Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 Minutes of Board Meeting Page 1 of 13 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was called to order by Board Chairman Greg Sebourn on March 28, 2018, at 6:03 p.m., in the Administration Building. Director Peter Kim delivered the invocation and led the Pledge of Allegiance. Chair Sebourn stated that the addition to the OCSD Board of Directors is a receive and file item and requires no action; and if no objection, is so ordered. RECEIVED AND FILE MINUTE EXCERPTS OF MEMBER AGENCIES RELATING TO APPOINTMENTS TO THE OCSD BOARD OF DIRECTORS (Clerk of the Board) AGENCY DIRECTOR ALT. DIRECTOR Huntington Beach Erik Peterson Mike Posey The Clerk of the Board declared a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS x Gregory Sebourn, Chair Jesus Silva x Denise Barnes Lucille Kring x Allan Bernstein Chuck Puckett x Robert Collacott Robbie Pitts x Ellery Deaton Sandra Massa-Lavitt x James M. Ferryman Bob Ooten A Phil Hawkins Brooke Jones x Steven Jones Kris Beard x Peter Kim Marshall Goodman x Charlie Nguyen Al Krippner x Richard Murphy Warren Kusumoto x Steve Nagel Cheryl Brothers x Glenn Parker Cecilia Hupp x Scott Peotter Brad Avery x Erik Peterson Mike Posey Tim Shaw x Michael Blazey x David Shawver Carol Warren x Fred Smith Virginia Vaughn x Teresa Smith Mark Murphy A Michelle Steel Shawn Nelson A Sal Tinajero David Benavides x Donald Wagner Lynn Schott A Chad Wanke Ward Smith x John Withers DouQlas Reinhart x Mariellen Yarc Stacy Berry 03/28/2018 Minutes of Board Meeting Page 2of14 STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Bob Ghirelli, Assistant General Manager; Rob Thompson, Assistant General Manager; Celia Chandler, Director of Human Resources; Ed Torres, Director of Operations & Maintenance; Jim Colston, Director of Environmental Services; Lorenzo Tyner, Director of Finance & Administrative Services; Kelly Lore, Clerk of the Board; Angela Brandt; Jennifer Cabral; Donald Cutler; Rhea DeGuzman; Mike Dorman; Dean Fisher; Lisa Frigo; Al Garcia; Tina Knapp; Jackie Lagade; Mark Manzo; Gerry Matthews; Kathy Millea; Jeff Mohr; Man Nguyen; Heather Park; Lori Shimomura; Roya Sohanaki; Jim Spears; Eros Yong. OTHERS PRESENT: Brad Hogin (General Counsel); Gary Weisberg (Assistant General Counsel); Alternate Director Bob Ooten (CMSD); Mitch Christinsen (Patriot Wastewater); Mirio Chua; Anders Darryl (Patriot Wastewater); Gregorio Estrada (HOR); James Guziak; Roy McCord; Helen Phillips; Carlos Quiroz; Lilian & Sergio Ramor; Al Sandrig; Norma and Donna Schlitz; Ted Tardie; Rich ten Bosch (Black & Veatch); Matt Thomas (Black & Veatch). PUBLIC COMMENTS: Bob Ooten stated that he would be running for Alternate member of OCLAFCO in the upcoming election. The Clerk of the Board presented late communication to the Directors regarding Item No. 1 and Item No. 4. SPECIAL PRESENTATIONS: None. REPORTS: Chair Sebourn reminded the Directors that the annual Conflict of Interest Form 700 Filing is due no later than Monday, April 2. General Manager Herberg stated that outreach regarding tonight's proposed rate increases was presented to the Orange County Business Council, OCTax, and the Building Industry Association, and positive feedback was received for the fiscal management of OCSD. Mr. Herberg announced the following awards were received by the agency: Certificate of Achievement for Excellence in Financial Reporting for the 25th consecutive year and the Award of Financial Reporting Achievement by the Government Finance Officers Association of the United States and Canada. In addition, individual awards at the local section of the California Water Environment Association (CWEA), Santa Ana River Basin Section were received by: Larry Andresen, Sr. Plant Operator, received Plant Operator of the Year; Jonathon Powell, Associate Engineer, won the Pretreatment, Pollution Prevention and Stormwater (P3S) Person of the Year Award; Michelle Hetherington and Vicki Francis, Sr. Engineers, received the CWEA Quarter Century Recognition. 03/28/2018 Minutes of Board Meeting Page 3of13 CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED. SECONDED. AND DULY CARRIED TO: Approve the minutes of the Regular Meeting of the Board of Directors held on February 28, 2018. AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver; F. Smith; T. Smith; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Hawkins; Steel; Tinajero; and Wanke RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the Board Chair. 2. COMMITTEE MINUTES (Clerk of the Board) Received and filed the approved minutes of the following committees: A. Steering Committee Meeting of January 24, 2018 B. Legislative and Public Affairs Meeting of February 5, 2018 C. Operations Committee Meeting of February 7, 2018 D. Administration Committee Meeting of February 14, 2018 3. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF FEBRUARY 2018 (Lorenzo Tyner) Received and filed the report of the Investment Transactions for the month of February 2018. Chair Sebourn announced the order of action on Agenda Items No. 4-6: 1. General Manager Jim Herberg will provide a brief PowerPoint presentation prior to the opening of the first Public Hearing. 2. Proceed to Open the Public Hearing, receive public comment, and then close the public hearing. Each item will be heard separately. 3. During public comment, the Clerk of the Board will call upon the speakers for each public hearing in the order their cards were received. Each speaker will have three minutes to speak. 4. After the public hearing, discussion will begin and staff will answer questions of the Directors. 5. After discussion on Item No. 4, the Clerk of the Board would report the number of protests received on this Item, and announce whether or not there is a majority protest. 6. Ask the Board of Directors for a motion for the item. 03/28/2018 Minutes of Board Meeting Page 4of13 7. Clerk of the Board will read the Ordinance title and a roll call vote will be taken on each item separately. PUBLIC HEARING -REGIONAL SEWER SERVICE CHARGES 4. PROPOSED ORDINANCE NO. OCSD-49 ADOPTING REGIONAL SEWER SERVICE CHARGES (Lorenzo Tyner) A. Public Hearing under Proposition 218 for Proposed Multi-Year Regional Sewer Service Charges and under Health and Safety Code section 5473.1 for collection of charges on the tax roll. Mr. Herberg provided an informative PowerPoint presentation regarding the proposed rate structure including the information used to plan and proactively forecast the setting of the rates. He focused on the District's strong financial plan with no new debt issuances and the ability to maintain a AAA bond rating. Mr. Herberg reviewed the operational efficiency and presented a pie chart describing where the money comes from and where the money is distributed. A bar chart was also shown which compared OCSD's Single Family Residential Rate to the same of other agencies throughout the state. Mr. Herberg provided information and comparisons for Industrial Users, Capital Facilities Capacity Charges, and Supplemental Charges and Waste Hauler fees. Finally, Mr. Herberg stated that the commitments of the agency are to be fiscally responsible, maximize Resource Recovery, and rehabilitation and replacement of the Regional Wastewater Infrastructure. Chair Sebourn opened the Public Hearing at 6:30 p.m. Public Comments were received in opposition from the following: Kevin McPherson, Bob Lockhart, Ron Bowme, Anthony Trujillo, and James Guziak. At the request of the Chairman, Mr. Herberg briefly responded to the questions and comments from the public. Chair Sebourn closed the Public Hearing at 6:47 p.m. B. The Clerk of the Board tabulated the results of the protests received and reported to the Board of Directors that there were 86 written protests and five speakers in opposition this evening. There was not a majority protest. Chair Sebourn framed the discussion by stating that the rate proposal for consideration will increase the rate paid by a homeowner in Orange County an average of $4 per year ($0.33/month) to maintain over $10 billion in infrastructure, cover the inflationary cost of maintaining this system, and pay down the outstanding debt. He stated the importance of having a safe and reliable sewage treatment system to maintain a clean and healthy environment. 03/28/2018 Minutes of Board Meeting Page 5of13 Chair Sebourn provided examples of OCSD's achievements over the last 20 years, which he stated have been delivered on time and on budget. He studied the proposed rates, worked directly with staff, and stated that he is confident the proposed rates are prudent and necessary. Chair Sebourn stated that OCSD is consistently trying to reduce costs, streamline processes, and hold the line on staffing, while still increasing the level of wastewater treatment, and further stated that the recommended rate program is less than half of the projected rate of inflation. He also commented on consequences of not approving the proposed rate increases. Director Wagner stated that this action is not being taken based only on tonight's presentation; that the item has been read and worked through at the Committee and Board meetings several times, and thanked the administration for the education. In response to a question from Director Wagner, Mr. Tyner explained the rationale of a single rate vs. varied rates based on flow. He stated that OCSD operates within multiple water systems and data and it would be cost prohibited, at approximately $1,000 to $2,000 per residence, to determine and charge based on the individual flow for each. MOVED. SECONDED. AND DULY CARRIED TO: C. Motion to read Ordinance No. OCSD-49 by title only and waive second reading of said entire ordinance. D. Adopt Ordinance No. OCSD-49 entitled: "An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Regional Sewer Service Charges and Repealing Ordinance No. OCSD-41 and Ordinance No. OCSD-46"; and E. Adopt Resolution No. OCSD 18-03 entitled, "A Resolution of the Board of Directors Directing the County Tax Collector-Treasurer to include Regional Sanitary Sewer Service Charges on the Tax Roll for Fiscal Years 2018-2019 through 2022-2023." Mr. Tyner responded to various questions from the Directors regarding the customer service process of the rebate program. General Counsel Brad Hogin responded to an inquiry regarding reduced rates for special interest groups or hardships, stating that Proposition 218 requires that the agency charge each user his or her fair share, based on the benefit the user gets or puts on the system. Vice-Chair Shawver stated support for the revised rebate program. 03/28/2018 Minutes of Board Meeting Page 6of13 The Clerk of the Board read the Ordinance title and proceeded with a roll call vote: AYES: Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson; Shawver; F. Smith; T. Smith; Wagner; Withers; and Yarc NOES: ABSTENTIONS: ABSENT: Barnes; and Sebourn None Hawkins; Steel; Tinajero; and Wanke PUBLIC HEARING -CAPITAL FACILITIES CAPACITY CHARGES 5. PROPOSED ORDINANCE NO. OCSD-50 ADOPTING CAPITAL FACILITIES CAPACITY CHARGES A. Public hearing conducted for Capital Facilities Capacity Charges Chairman Sebourn opened the Public Hearing at 7:03 p.m. There were no public comments provided. Chair Sebourn closed the Public Hearing at 7:04 p.m. MOVED. SECONDED. AND DULY CARRIED TO: B. Motion to read Ordinance No. OCSD-50 by title only and waive second reading of said entire ordinance; C. Adopt Ordinance No. OCSD-50 entitled: "An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Capital Facilities Capacity Charges and Repealing Ordinance No. OCSD-40 and Ordinance No. OCSD-42". MOVED. SECONDED. AND DULY CARRIED TO: Reopen the Public Hearing. Chairman Sebourn reopened the Public Hearing at 7:06 p.m. Public Comment was received in opposition from Bob Lockhart. Chairman Sebourn closed the Public Hearing at 7: 10 p.m. At the request of Director Parker, Mr. Tyner explained that connection fees are calculated when a City building permit is pulled, not when the certificate of occupancy is completed. He further described the process. The Clerk of the Board read the Ordinance title and proceeded with a roll call vote: AYES: NOES: 03/28/2018 Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver; F. Smith; T. Smith; Wagner; Withers; and Yarc None Minutes of Board Meeting Page 7 of 13 ABSTENTIONS: None ABSENT: Hawkins; Steel; Tinajero; and Wanke PUBLIC HEARING -MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS 6. PROPOSED ORDINANCE NO. OCSD-51 ADOPTING MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS A. Public Hearing for Proposed Miscellaneous Charges and Fees relating to Industrial Dischargers, Source Control Permittees, and Wastehaulers. Chairman Sebourn opened the Public Hearing at 7: 13 p.m. There were no public comments provided. Chair Sebourn closed the Public Hearing at 7:13 p.m. MOVED. SECONDED. AND DULY CARRIED TO: B. Motion to read Ordinance No. OCSD-51 by title only and waive second reading of said entire ordinance; and C. Adopt Ordinance No. OCSD-51 entitled: "An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Miscellaneous Charges and Fees Relating to Industrial Dischargers, Source Control Permittees and Wastehaulers and Repealing Ordinance No. OCSD-40 and Ordinance No. OCSD-42." The Clerk of the Board read the Ordinance title and proceeded with a roll call vote: AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver; F. Smith; T. Smith; Wagner; Withers; and Yarc None None Hawkins; Steel; Tinajero; and Wanke Chair Sebourn recessed the meeting at 7:16 p.m. Chair Sebourn reconvened the meeting at 7:22 p.m. 03/28/2018 Minutes of Board Meeting Page 8of13 OPERATIONS COMMITTEE: 7. RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO. 2, PROJECT NO. P2-123 (Rob Thompson) MOVED. SECONDED. AND DULY CARRIED TO: A. Approve a Professional Design Services Agreement with Spec Services, Inc. for the Return Activated Sludge Piping Replacement at Plant No. 2, Project No. P2-123, for an amount not to exceed $668,217; and B. Approve a contingency of $66,822 (10%). AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver; F. Smith; T. Smith; Wagner; Withers; and Yarc None None Hawkins; Steel; Tinajero; and Wanke 8. SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 1, PROJECT NO. P1-101 (Rob Thompson) MOVED. SECONDED. AND DULY CARRIED TO: A. Approve a contingency increase of $856,800 (12%) to the Professional Consultant Services Agreement with HOR Engineering, Inc. to provide construction support services for Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1-101, for a total contingency amount of $2, 142,000 (30%); and B. Direct staff to prepare a detailed report describing the project including significant design, construction and commission issues, and how the issues were resolved (i.e. lessons learned). AYES: NOES: ABSTENTIONS: ABSENT: 03/28/2018 Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver; F. Smith; T. Smith; Wagner; Withers; and Yarc None None Hawkins; Steel; Tinajero; and Wanke Minutes of Board Meeting Page 9of13 9. EAST BASIN DISTRIBUTION BOX REPAIR, PROJECT NO. FE16-10 (Rob Thompson) MOVED. SECONDED. AND DULY CARRIED TO: A. Award a construction contract to Howard Ridley Co. Inc. for the East Basin Distribution Box Repair, Project No. FE16-10, for a total amount not to exceed $529,350; and B. Approve a contingency of $52,935 (10%). AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver; F. Smith; T. Smith; Wagner; Withers; and Yarc None None Hawkins; Steel; Tinajero; and Wanke 10. PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE REHABILITATION (Ed Torres) MOVED. SECONDED. AND DULY CARRIED TO: A. Approve a Sole Source Purchase Order to Dresser-Rand for the assessment and standard overhaul of the Steam Turbine at Plant No. 2, for an amount not to exceed $245,424, including applicable tax and freight; and B. Approve a contingency of $49,085 (20%). AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver; F. Smith; T. Smith; Wagner; Withers; and Yarc None None Hawkins; Steel; Tinajero; and Wanke 11. SITE ACCESS AND LICENSE AGREEMENT-BREA DOSING STATION (Ed Torres) MOVED. SECONDED. AND DULY CARRIED TO: A. Approve a new Site Access and License agreement with Pacific Quality Partners to lease property for the purpose of installing, maintaining, and operating a chemical dosing station at 1355 West Imperial Highway in the city of Brea, for a term of 36 months, at the following lease terms, in a form approved by General Counsel: • April 22, 2018 through April 21, 2019, $2,500 per month 03/28/2018 Minutes of Board Meeting Page 10of13 • April 22, 2019 through April 21, 2020, $2,560 per month • April 22, 2020 through April 21, 2021, $2,620 per month; and B. Authorize the General Manager or designee to negotiate and subsequently award an option for an additional 36-month lease renewal period beginning April 22, 2021. AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver; F. Smith; T. Smith; Wagner; Withers; and Yarc None None Hawkins; Steel; Tinajero; and Wanke 12. SCADA SYSTEM AND NETWORK UPGRADES, PROJECT NO. P2-107 (Rob Thompson) MOVED. SECONDED. AND DULY CARRIED TO: Approve a contingency increase of $211,365 (7.5%) to the Professional Design Services Agreement with Brown and Caldwell for SCADA System and Network Upgrades, Project No. P2-107, for a total contingency amount of $493, 185 (17.5%). AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver; F. Smith; T. Smith; Wagner; Withers; and Yarc None None Hawkins; Steel; Tinajero; and Wanke 13. OCEAN OUTFALL SYSTEM REHABILITATION, PROJECT NO. J-117 AND SCADA SYSTEM AND NETWORK UPGRADES, PROJECT NO. P2-107 (Rob Thompson) MOVED. SECONDED. AND DULY CARRIED TO: A. Approve a budget increase of $19,000,000 for Ocean Outfall System Rehabilitation, Project No. J-117, for a total budget amount of $166,000,000; and B. Approve a budget reduction of $19, 100,000 for SCADA System and Network Upgrades, Project No. P2-107, for a total budget amount of $5,000,000. AYES: NOES: 03/28/2018 Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver; F. Smith; T. Smith; Wagner; Withers; and Yarc None Minutes of Board Meeting Page 11 of 13 ABSTENTIONS: None ABSENT: Hawkins; Steel; Tinajero; and Wanke 14. SOLE SOURCE LOAD SHEDDING AND PROTECTIVE RELAY SYSTEM (Rob Thompson) MOVED. SECONDED. AND DULY CARRIED TO: A. Authorize staff to specify Schweitzer Engineering Laboratories as the sole source provider for current and future projects equipment, materials, and services for electrical power system protective relays and load-shedding systems at Plant Nos. 1 and 2; B. Authorize staff to negotiate service agreements for services related to protective relays and load-shedding systems for current and future projects, and for on-going operations and maintenance at Plant Nos. 1 and 2; and C. Ratify the addition of Schweitzer Engineering Laboratories to the list of pre-approved Original Equipment Manufacturers for procurements under $100,000 for equipment, materials, and services for electrical power system protective relays and load-shedding systems. AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver; F. Smith; T. Smith; Wagner; Withers; and Yarc None None Hawkins; Steel; Tinajero; and Wanke ADMINISTRATION COMMITTEE: None. LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE: None. STEERING COMMITTEE: None. NON-CONSENT: None. AB 1234 DISCLOSURE REPORTS: Director Ferryman provided information regarding recently attended meetings of NWRI and OCCOG. 03/28/2018 Minutes of Board Meeting Page 12of13 CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.8 & 54956.9(2): The Board convened in closed session at 7:28 p.m. to discuss two items. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 8:32 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: Mr. Hogin reported that the Board took the following action in Closed Session: MOVED. SECONDED. AND DULY CARRIED TO: Deny the claim of Carlos Quiroz. AYES: NOES: ABSTENTIONS: ABSENT: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver; F. Smith; T. Smith; Wagner; Withers; and Yarc None None Hawkins; Steel; Tinajero; and Wanke OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: In response to a request, Chair Sebourn inquired whether the Board of Directors were interested in holding a Budget Workshop. With sufficient interest, staff was instructed to proceed with scheduling. ADJOURNMENT: At 8:33 p.m., Chair Sebourn adjourned the meeting in memory of Marie Herberg, mother of General Manager Jim Herberg, until the Regular Meeting of the Board of Directors to be held on April 25, 2018 at 6:00 p.m. 03/28/2018 Minutes of Board Meeting Page 13of13