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HomeMy WebLinkAbout08-01-2012 Operations Committee Minutes MINUTES OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Facilities Support Services Orange County Sanitation District A regular meeting of the Operations Committee of the Orange County Sanitation District was held on August 1 , 2012, at 5:00 p.m. in the District's Administrative Office. A quorum was declared present, as follows: Operations Directors Present: Staff Present: John Nielsen, Vice Chair Jim Ruth, General Manager Bill Dalton Bob Ghirelli, Assistant General Manager Michael Levitt Jim Herberg, Assistant General Manager Joy Neugebauer Nick Arhontes, Director of Facilities Support Steven Rosansky Services Don Schweitzer Jeff Reed, Director, Human Resources David Shawver Ed Torres, Director of Operations & Maintenance Harry Sidhu (Alternate) Lorenzo Tyner, Director of Finance & Fred Smith Administrative Services Troy Edgar, Board Chair Nakeisha Turner, Secretary Pro Tern John Anderson, Board Vice Chair Dean Fisher, Engineering Manager Tod Haynes, Engineering Manager Operations Directors Absent: Rob Thompson, Engineering Manager Tom Beamish, Chair Jeff Armstrong Gail Eastman Greg Blakeley Scott Nelson Jim Colston Ron Coss Others Present: Marc Dubois Brad Hogin, General Counsel Mark Esquer Larry Crandall, Director Anne Marie Feery Brad Reese, Director Al Garcia Layne Baraldi Tom Meregillano Shaen Magan Leyla Perez Chris Marks Alex Shaaban Joel Santos Warren Sternin Jeff Thurber Chris Yates 08/01/12 Operations Committee Minutes Page 1 of 5 General Counsel, Brad Hogin, announced that when the majority of the OCSD Board of Directors is present, those Directors in attendance that are not assigned to the Operations Committee Meeting may sit in the audience but may not participate in the meeting in any way. PUBLIC COMMENTS: Vice Chair Nielsen deferred public comments on Item 6 to the time the item was addressed. REPORT OF COMMITTEE CHAIR: Vice Chair Nielsen did not give a report. REPORT OF GENERAL MANAGER: General Manager, Jim Ruth, did not give a report. DEPARTMENT HEAD REPORT: Jim Herberg, Assistant General Manager, gave a brief report on the status of Phase 2 of the Outfall Land Section and Ocean Outfall Boosting Station Piping Rehabilitation, Project J-11213; he will continue to report on the project as it evolves. Jeff Armstrong, Environmental Supervisor, also addressed questions regarding monitoring of the outfall from the Committee members. Ed Torres, Director of Operations & Maintenance, reported on the following: completion of construction on the secondary treatment process facilities at Plant No. 1; the start of Boat Captain, Kathy Peet; and the intent of staff to recommend a contract extension to complete work related to secondary treatment requirements at Plant No. 2 to the Board at its next regular meeting. Directors Rosansky and Schweitzer joined the meeting at 5:08 p.m. CONSENT CALENDAR: Director Sidhu departed the meeting before Items 1 through 7 were considered. 1. MOVED, SECONDED, AND DULY CARRIED: Approve Minutes of June 6, 2012, Operations Committee meeting. 08/01/12 Operations Committee Minutes Page 2 of 5 2. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: Approve a contingency increase of $79,540 (10%) to the Professional Design Services Agreement with AECOM Technical Services for the Balboa Trunk Sewer Rehabilitation, Project No. 5-47, for a total contingency of $159,280 (20%). 3. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: Approve a contingency increase of $266,248 (13%) to the construction contract with J. Fletcher Creamer & Son, Inc., for Interplant Gas Line Rehabilitation, Project No. J-106, for a total contingency of $409,612 (20%) 4. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: Approve a budget increase of $97,000 for Central Generation Automation, Project J-79-1, for a total budget amount of$23,443,000. 5. MOVED, SECONDED, AND DULY CARRIED: Approve a name change for Project No. P2-106 from Chemical Scrubber Conversions and Piping System Improvements to "Boiler System Rehabilitation and Scrubbers H & I Demolition at Plant No. 2". PUBLIC COMMENTS: At this time, public comments were heard regarding Item 6. Company representatives from Terra Renewal and Tule Ranch each distributed letters for the Committee. Joel Santos (Terra Renewal) expressed his concerns over the proposal evaluation process used in awarding the biosolids management contract. He recommended action on this item be suspended and a new bid process be considered. Chris Marks (Terra Renewal) expressed his concerns over the award protest process and the evaluation of Terra Renewal's experience. He recommended the proposal and award process be conducted again. Mr. Marks addressed questions from the Committee regarding the cause for cost differentials of similar services bid recently by an external agency. Jeff Thurber (Terra Renewal) expressed concern over the proposal evaluation process and provided information on the market trends for biosolids management services. 08/01/12 Operations Committee Minutes Page 3 of 5 Shaen Magan (Yule Ranch) provided the Committee with information about the operations and pricing of Tule Ranch. NON-CONSENT: Jim Ruth, General Manager, clarified that Item 6 is a recommendation to the full Board. From the Operations Committee, the Board will make the ultimate decision concerning the award of the biosolids management contract. Mr. Ruth summarized recent events of staff correspondence with directors regarding questions posed from the Board at its regular meeting held on June 27, 2012, and with Terra Renewal regarding its Statement of Complaint. Mr. Ruth reaffirmed staff's recommendation to award the biosolids management contract to Tule Ranch. Jim Herberg, Assistant General Manager, provided a review of staff's justification for recommending the contract award to Tule Ranch. After dialogue between the Committee members and Terra Renewal, staff was directed by Vice Chair Nielsen to request that Terra Renewal waive confidentiality of its financial data for members of the Board to review in consideration of its award of the biosolids management contract. 6. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: A. Receive and file Statement of Complaint for the Recommendation of Biosolids Management Contract Award letter dated July 12, 2012 from Terra Renewal West LLC protesting award to Tule Ranch; B. Receive and file letter dated July 23, 2012 to Terra Renewal West LLC responding to the Statement of Complaint; and, C. Approve a contract with Tule Ranch to manage the Orange County Sanitation District's biosolids from Reclamation Plant No. 1 and Treatment Plant No. 2 for land application and/or landfill disposal (Specification No. S-2011-513BD), for the period commencing on January 1, 2013 through December 31 , 2017, with one five-year renewal option, for the unit price of $54.50 per ton for land application, for a total annual amount not to exceed $19,000,000. Director Rosansky opposed. INFORMATION ITEMS: 7. Changes to Ocean Monitoring Program with the new Ocean Discharge Permit 08/01/12 Operations Committee Minutes Page 4 of 5 Jeff Armstrong delivered a PowerPoint presentation that included information on the frequency of sample collection under OCSD's new Ocean Discharge Permit. Ron Coss, Environmental Lab and Operations & Maintenance Manager, was also present and addressed questions from the Committee. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Director Shawver thanked staff for a well-organized, structured, and very informative Community Open House outreach event held at OCSD on the preceding Saturday. Director Neugebauer thanked staff for attending and distributing materials at the Westminster Safety Day. Director Anderson inquired about when public service announcements generated from the Video Contest will be made available. Staff announced they are now viewable on the OCSD website; a disk will be made available for directors. ADJOURNMENT: Committee Vice Chair Nielsen declared the meeting adjourned at 6:34 p.m. Submitted by: Nakeisha Turner Secretary Pro Tern 08/01/12 Operations Committee Minutes Page 5 of 5 Jeff Armstrong delivered a PowerPoint presentation that included information on the frequency of sample collection under OCSD's new Ocean Discharge Permit. Ron Coss, Environmental Lab and Operations & Maintenance Manager, was also present and addressed questions from the Committee. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Director Shawver thanked staff for a well-organized, structured, and very informative Community Open House outreach event held at OCSD on the preceding Saturday. Director Neugebauer thanked staff for attending and distributing materials at the Westminster Safety Day. Director Anderson inquired about when public service announcements generated from the Video Contest will be made available. Staff announced they are now viewable on the OCSD website; a disk will be made available for directors. ADJOURNMENT: Committee Vice Chair Nielsen declared the meeting adjourned at 6:34 p.m. Submitted by: Nakeisha Turner Secretary Pro Tern 08/01/12 Operations Committee Minutes Page 5 of 5