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HomeMy WebLinkAbout1997-07 t FILED In the Office of the Secretary � J County Sanitation Districts - CountySanAaton Distrot(c) ,7� `.d - No(s),/,&�s- ,9./, 3f7Y of Orange County,Ellis P.O. Box 8127• 10844 Ellis Avenue AUG 271997 Fountain Valley, CA 92728-8127 By 1" DRAFT Telephone: (714)962-2411 � MINUTES OF THE STEERING COMMITTEE Elea WEDNESDAY, JULY 30, 1997 AT 5:30 P.M. The regular meeting of the Steering Committee of the County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California was held on Wednesday, July 30, 1997, at 5:30 p.m., at the Districts' Administrative Office. ROLL CALL The roll was called and a quorum declared present, as follows: PRESENT: OTHERS PRESENT: John J. Collins, Joint Chair Thomas L. Woodruff, General Counsel Peer A. Swan, Vice Joint Chair George Brown, Chair, FAHR STAFF PRESENT: Pal McGuigan, Chair, OMTS Donald F. McIntyre, General Manager Bumie Dunlap, Chair, PDC Blake P. Anderson, Chief Operations Officer Judith A. Wilson, Chief Administrative Officer ABSENT: Edwin E. Hodges, Director of GSA Bill Steiner, Supervisor Jean Tappan, Committee Secretary APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. PUBLIC COMMENTS There were no comments by any member of the public. RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING MOTION: Receive, file and approve draft minutes of the June 25, 1997 Steering Committee meeting as mailed. MOTION UNANIMOUSLY CARRIED. � 1 Minutes of the Steering Committee 1� _ Page 2 July 30, 1997 REPORT OF THE COMMITTEE CHAIR The Committee Chair did not make a report. REPORT OF THE GENERAL MANAGER The General Manager thanked Judy Wilson for her two years of service to the Districts. At this time, her position will not be filled. The Administrative side of the house is in good order and with Don's oversight can be maintained. He will meet with the administrative departments heads on a weekly basis, as Judy has done. Action Item: A revised organization chart will be prepared for the next meeting. Director McGuigan suggested that Michelle Tuchman prepare an announcement on the plans to eliminate this position. Don indicated that he will be making the announcement at the August Board meeting. REPORT OF GENERAL COUNSEL General Counsel did not make a report. DISCUSSION ITEMS (Nos. 1-10) The discussion items were taken out of order to accommodate staff schedules, as follows: 1. Consider County of Orange Request for Certification and Indemnification of Districts' User Charges and compliance with the provisions of Proposition 218 and make recommendation to Joint Boards. Discussion: General Counsel Tom Woodruff indicated that there is no longer a need to present this item to the Joint Boards because the County Auditor has agreed to language revisions suggested by Counsel. As it turned out, 60 of the 63 entities that received this certification request also refused to sign the form as written. Action: The Steering Committee authorized General Counsel to send the revised compliance letter dated July 31, 1997 to the County Auditor. The Joint Chair will ask that the item be removed from the Joint Boards agenda tonight. 3. Update on County of Orange 800 MHz Project proposed at Plant 2 Discussion: Ed Hodges, Director of General Services Administration, updated the Committee on recent activities related to the County's Emergency Response system, specifically the 800 MHz Communication System which is the backbone of the program. In April, when the project was first discussed with the Steering Committee, staff was directed to talk with the Huntington Beach Directors to get their concurrence. Al that time, the Directors indicated they were not interested in participating in the program. However, the Huntington Beach City Council, on advice from their emergency services staff, voted in June to go ahead and allow the County to site a facility on our property. However, after meeting with the homeowners in the area, the specific site at Plant 2 has been changed. Minutes of the Steering `,,imittee Page 3 July 30, 1997 When staff was advised of the change, they notified the County that the location is on an earthquake fault. The County determined that this would not be a problem and submitted a proposed lease agreement that included a term of 50 years at no cost. During discussions, Mr. Hodges suggested that if the lease was "no cost", then we would want to be provided access to the 800 MHz system for free, which would result in a potential savings for the Districts of about$1.2 million. The other key negotiating point would be to get the Districts designated as an "essential public service", which we are not considered at this time by the county communication system. Another requirement would be that at the end of the lease , the County would be responsible for removing the facilities at their expense. There is an indemnity clause included as well. Mr. Hodges then described the project in more detail and displayed an architectural rendering of the project. The tower will be 150 feet tall and the footprint (including the building) will be approximately 20' x 60'. The Steering Committee authorized staff to proceed with negotiations, and directed staff to discuss the project with the Directors from Costa Mesa and Newport Beach as well. The lease agreement will be in a forth acceptable to General Counsel. Director McGuigan suggested that landscaping be considered around the facility. 5. Compressed Natural Gas (CNG) Station, Job No. P1-51, and proposal from Pickens Fuel Corp. Mr. Hodges reviewed the history of the project and the activities to dale. In June, General Counsel advised staff that there could be a problem with owning and operating a commercial station. A meeting was held with Pickens Fuel Corp. to discuss the possibility of their taking over the construction and financing responsibility for this station. They indicated a willingness to consider this opportunity, and submitted a proposal. Mr. Hodges outlined the deal points of the proposal. A meeting was held with AQMD to discuss the proposed changes, and they agreed with the concept. Several issues still need to be resolved, including obtaining the air emission credits associated with the project, and no guarantee from us on minimum usage. General Counsel explained the Districts' limited powers for business ventures that are speed in the Special Districts Act. Director Dunlap questioned selling electricity. Because this is a byproduct of our processes, there are no restrictions. There are studies underway at this time to see how the deregulation of the electrical utilities may affect the Districts. The Steering Committee had no objections to the continued negotiations with Pickens Fuel Corp. and AQMD. 2. Proposed Changes to the Delegation of Authority. Blake Anderson updated the members on the status of the proposed revisions to the Delegation of Authority resolution. These changes are tentatively scheduled to go to the PDC and FAHR in October, depending on when the workshop for the PDC Committee members is held. If approved, the changes would be effective January 1, 1998. Minutes of the Steering Co,,littee Page 4 July 30, 1997 4. Update on Investigation and Associated Costs. Judy Wilson reported on the status of the appeal hearings. All of the Level 2 hearings have been held. There are still three hearings for Level 1 employees and these should be completed by the end of August. Only one decision was overturned, due to the lack of corroborating testimony. The costs to date were also reviewed. The committee questioned the impact of vacant positions in the Collections Facilities Division on the collections system programs. Staff indicated that at this time there have been no adverse effects. 6. OCR Project Governance Issues. Blake Anderson discussed the process used for approving action items from the Joint OCR Project Cooperative Committee. There are two actions moving forward at this time for presentation to the Boards in August. Because no additional projects are anticipated that would require PDC Committee or Boards action until 1999, further discussions on streamlining the approval process will be deferred until mid-1998. 7. Next Steps for Consolidation. Judy Wilson indicated that there will be an Executive Committee meeting on September 17 to review the LAFCO application. Cymantha Atkinson will be the lead for this project. When the consolidation bill becomes law in January, LAFCO will hold public hearings. Implementation is scheduled for July 1, 1998. Don McIntyre mentioned that he had lunch with Dana Smith of LAFCO and she is comfortable with the schedule. Staff is looking at this as an opportunity to streamline many of the administrative processes. The issue of rate equalization was discussed. Many of the issues of concern can be discussed after consolidation is implemented. 8. Review FY 96-97 Year-end Numbers. Staff reviewed the year-end numbers with the Committee. Year-end spending resulted in an increase in the cost/mgd, from $511 to $530. Controls may have to be developed to encourage staff to avoid this end-of-the-year budget spend down. The impact on the budget of the CMS investigation was discussed. 10. Agenda Items Scheduled for Committee Review in August. The OMITS and FAHR Committees are not meeting in August. The items for the August PDC Committee were discussed. Chair Collins suggested that Dave Ludwin and Chairman Dunlap meet with Supervisor Spitzer's aide before the meeting to thoroughly review the items on the agenda. Director McGuigan indicated that she has taken the liberty to change the OMITS scheduled "dads" month from December to January. There will be a meeting of the OMTS on December 3. Minutes of the Steering ..,imittee Page 5 July 30, 1997 Director Dunlap advised the Committee that the members of the PDC Committee unanimously approved the hiring of Frank Dryden. It was agreed that Item 9, Discussion on Performance Evaluations of Assistant General Managers and Department Heads, would be moved to Closed Session. OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY Blake Anderson updated the members on recent OCIP activities relative to the County's intention to keep all of the $30 million settlement with Merrill Lynch, and discussed possible options. MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. CLOSED SESSION The Joint Chair reported to the Directors the need for a closed session, as authorized by Government Cade Section 45956.9, to discuss personnel evaluations. He reported that the item could be added pursuant to Government Code Section 54954.2(b) upon a two-thirds vote of the Committee. No other item would be discussed or acted upon. Upon the unanimous vote of all members present to move the item, the Committee convened in closed session at 7:05 p.m. Confidential Minutes of the closed session held by the Committee have been prepared in accordance with California Government Code Section 45957.2 and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. A report of the action taken will be publicly reported at the time that the approved action becomes final. At 7:25 p.m., the Committee reconvened in regular session. CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, August 27, 1997 at 5:30 p.m. ADJOURNMENT The Chair declared the meeting adjourned at 7:26 p.m. $ybmitted by: J - Tappan, Steering o mitteeSecretary H\ W1G IGM R'.G CAMMfRE ULUV M.d. STATE OF CALIFORNIA ) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 64954.2, 1 hereby certify that the Notice and the Agenda for the Steering Committee meeting held on Wednesday, July 30, 1997, was duly posted for public inspection in the main lobby of the Districts'offices on July 24, 1997. IN WITNESS WHEREOF, I have hereunto set my hand this 31P day of July 1997. �4"A - P nny Kyle, ary a of the Boards 1. Directors of ty S ni lion Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 & 14 of of r ge County, California Posted: 1997, �-5� P.M. By Signaluro wpam§,,,�v-commkocfina.rm h COUNTY*4NITATION DISTRICTS OF ORt.aGE COUNTY, CALIFORNIA BOARD SECRETARY (2) .have: (71419622411 mailing address: P.O. Box B127 Foumain Valley.0A 9272E8127 July 24, 1997 street address: 108"Ells Avenue Fournain Valle,CA 927087016 NOTICE OF MEETING STEERING COMMITTEE Member Agencies 0 COUNTY SANITATION DISTRICTS ci NOS. 1, 2, 3, 5, 6, 7, 11, 13 AND 14 Anaheim OF ORANGE COUNTY, CALIFORNIA ere. Buena Park Gyp. Foant F. Vahan Fullerton WEDNESDAY, JULY 30, 1997 - 5:30 P.M. Huntington Beach Irvine La Habra La Alamitos Palma Los DISTRICTS' ADMINISTRATIVE OFFICES Newport Beach 10844 ELLIS AVENUE Orange Pl.cenoe FOUNTAIN VALLEY, CALIFORNIA 92708 Santa Ana Seel Beach Stern Con Villa Park yorba Linda A regular meeting of the Steering Committee of the Joint Boards of Directors County of Orange of County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California, will be held at the above location, date and time. Sanitery Districts Caste Mesa Garden Brava Midway City Water Districts Irvine Bench A Public Wastewater and Environmental Management Agency Committed[o Protecting Me Environment Since 7954 Iftw STEERING COMMITTEE Roll Call: Meeting Date: July 30, 1997 Meeting Time: 5,30 p.m. Meeting Adjourned: Committee Members John J. Collins, Joint Chair....................................... Peer A. Swan, Vice Joint Chair................................ George Brown, Chair, FAHR.................................... Bumie Dunlap, Chair, PDC....................................... Pat McGuigan, Chair, OMTS.................................... Bill Steiner, Supervisor............................................. Others Thomas L. Woodruff, General Counsel.................... Staff Present Donald F. McIntyre, General Manager...................... Blake P. Anderson, Asst. General Manager.............. Judith A. Wilson, Asst. General Manager................. Jean Tappan, Secretary........................................... c: Board Secretary Debbie Lacuna July 24, 1997 AGENDA REGULAR MEETING OF THE STEERING COMMITTEE COUNTY SANITATION DISTRICTS NOS. 1, 2, 3, 5, 6, 7, 11, 13 AND 14 OF ORANGE COUNTY, CALIFORNIA WEDNESDAY, JULY 30, 1997 AT 5:30 P.M. ADMINISTRATIVE OFFICES 10844 Ellis Avenue Fountain Valley, California ROLL CALL APPOINTMENT OF CHAIR PRO TEM. IF NECESSARY AGENDA In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the Districts' Administrative Offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. In the event any matter not listed on this agenda is proposed to be submitted to the Steering Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or that there is a need to take immediate action which need came to the attention of the Districts subsequent to the posting of the agenda, or as set forth on a supplemental agenda posted not less than 72 hours prior to the meeting date. PUBLIC COMMENTS All persons wishing to address the Steering Committee on specific agenda items or matters of general interest should do so at this time. As determined by the Chairman, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to five minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot action taken by the Committee except as authorized by Section 54954.2(b). -1- July W,1997 Agenda APPROVE MINUTES OF PREVIOUS MEETING RECOMMENDED ACTION: Approve draft minutes of the June 25, 1997 Steering Committee meeting. REPORT OF COMMITTEE CHAIR REPORT OF GENERAL MANAGER REPORT OF GENERAL COUNSEL DISCUSSION ITEMS (Items 1-11) 1. Consider County of Orange Request for Certification and Indemnification of Districts' User Charges and compliance with the provisions of Proposition 218 and make recommendation to Joint Boards. This issue has been referred to the Steering Committee at the request of the FAHR Committee. Since that time, the County Controller has reconsidered as noted in the attached letter dated July 11, 1997. General Counsel will update the Committee on the status of this action. (Judy Wilson) 2. Discussion of proposed changes to Delegation of Authority Resolution (Blake Anderson) 3. Update on County of Orange 800 MHz project proposed at Plant No. 2 (Judy Wilson) 4. Update on investigation and associated costs (Judy Wilson) 5. Discussion re Compressed Natural Gas Station, Job No. P1-51, and proposal from Pickens Fuel Corp. (Judy Wilson) 6. Discussion on OCR Project governance issues (Blake Anderson) 7. Discussion on the next steps towards Consolidation (Judy Wilson) 8. Review FY 96-97 year-end numbers (Judy Wilson) 9. Discussion on performance evaluations of Assistant General Managers and General Manager (Don McIntyre) 10. Review agenda items scheduled to be presented to committees in August (Information item only) -2- July W.1997Agenda CLOSED SESSION During the course of conducting the business set forth on this agenda as a regular meeting of the Steering Committee, the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the Califomia Public Records Act, may be reviewed by the Directors during a permitted closed session and are not available for public inspection. At such time as final actions are taken by the Boards on any of these subjects, the minutes will reflect all required disclosures of information. 1. Convene in closed session, if necessary 2. Reconvene in regular session 3. Consideration of action, if any, on matters considered in closed session. OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT FUTURE MEETING DATES The next Steering Committee Meeting is scheduled for 5:30 p.m., Wednesday, August 27, 1997. jt H 1xy Vdmin\GMV^aIEERING OOMMnrEEQTvUWuIy aHeM do Nofice to Committee Members: For any questions on the agenda or to place items on the agenda,Committee members should contact the Committee Chair or the Secretary ten days in advance of the Committee meeting. Committee Chair. John Collins (714)9654400(City Hall) Secretary: Jean Tappan (714)962-2411, Ext 2001 (714)962-0356(Fax) -3- County Sanitation Districts of Orange County,California R O. Box 8127/10844 Ellis Avenue Fountain Valley, CA 92728-8127 Telephone: (714)962-2411 DRAFT MINUTES OF THE STEERING COMMITTEE Wednesday, June 25, 1997 at 5:30 p.m. A meeting of the Steering Committee of the County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California was held on Wednesday, June 25, 1997, at the Districts, Administrative Office. ROLL CALL The roll was called and a quorum declared present, as follows: PRESENT: John J. Collins, Joint Chair Peer A. Swan, Vice Joint Chair George Brown, Chair, FAHR Burnie Dunlap, Chair, PDC Pat McGuigan, Chair, OMTS William Steiner, Supervisor ABSENT: None OTHERS PRESENT: Thomas L. Woodruff, General Counsel STAFF PRESENT: Donald F. McIntyre, General Manager Blake P. Anderson, Chief Operations Officer Judith A. Wilson, Chief Administrative Officer Covina Chaudhry, Secretary Pro Tem Nancy Wheatley, Director of Technical Services APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. PUBLIC COMMENTS There were no comments by any member of the public. Minutes of the Steering Comi,..ae Page 2 June 25, 1997 APPROVE MINUTES OF PREVIOUS MEETING MOTION: Approve draft minutes of the May 28, 1997 Steering Committee meeting. Motion unanimously carried. REPORT OF THE COMMITTEE CHAIR There was no report by the Committee Chair. REPORT OF THE GENERAL MANAGER Don mentioned that he would be going on vacation to Illinois on July 21. Don said that part of the trip would be vacation and part business as he would also be visiting two sanitation districts; one in Cleveland and one in Louisville. Don mentioned that Mike Peterman would be making a presentation on the drug investigation at the CASA Conference in San Diego in August. Don said that he would like to add three items for discussion; Accident on Bushard regarding the manhole covers, OCIP, and Streamlining of the OCR Project Process. Don discussed the procedure of the OCR project and how inadequate the system seemed to be. Don said that the way the system is set up for approvals is very inefficient and will eventually slow down the process. He said that this needed to be addressed for discussion at the next OCR meeting. Peer Swan suggested that John Collins go to the next meeting and address this issue directly. It was mentioned that we should go back to OCR and let them know that staff is working on procedures for the OCR project. Action Item: An AIT, which details a procedure for the OCR project, should be developed and included as an item for the August PDC Committee. Blake provided photographs on the accident and stated that there were a total of four cars involved. Blake reported that we are presently investigating the accident to see if the cause could have been a pressure wave. All parties involved in the accident have been authorized the use of rental cars until their cars are fixed. Blake reported on the OCIP regarding the letter from Merrill Lynch agreeing to pay $3 million dollars for reimbursement of attorney's fees and $27 million towards the General Fund Account. Blake said that he had sent a letter to Pat Shea asking what the likelihood was of the Districts getting a part of that money, and if the Districts was entitled to a portion, when could they expect payment. Blake also wanted to ensure that this would not impact the civil case. REPORT OF GENERAL COUNSEL Tom reported that the lawyer for Sangermano had filed a motion for attomeys fees from the Districts. Tom didn't think there was any basis for this motion. Minutes of the Steering Cy,,nittes v Page 3 June 25, 1997 Tom reported the status on the investigation hearings thus far. The dollars spent so far on the investigation is about$463 thousand, with $1 million dollars saved from payroll. Tom will update the Steering Committee monthly of costs incurred from the investigation. Tom reported on the Anderson case and briefly discussed the Voluntary Settlement Conference. He mentioned that there had been some movement from this meeting. DISCUSSION ITEMS (Nos. 1-6) Delegation of Authority Don asked the Steering Committee on how to proceed regarding the Delegation of Authority. The Committee said to wart for a couple of months, bring the AIT to the PDC Committee and then proceed to the full board in September. Discussion of Hiring a Consultant for PDC for Member Orientation Don reported that after the last PDC meeting, it was suggested that a workshop be scheduled to provide the PDC members with procedural information on Engineering projects. The idea of hiring a consultant to coordinate this workshop and meet with PDC members one-on-one was also suggested. Blake had suggested that we use a consultant by the name of Frank Dryden (previously worked for L.A. County Sanitation Districts for many years), to help coordinate the workshop and meet with PDC members. Don reported that a meeting took place on June 20, with John Collins, himself, Blake Anderson, Doug Stuart, and Frank Dryden to discuss some of the possibilities. Burnie Dunlap couldn•t attend the meeting. The Steering Committee suggested that Bumie Dunlap be the lead in this project and that at the July PDC meeting, Burnie should inform the PDC Committee of the proposal to schedule a workshop and that a consultant would be meeting with PDC members individually. Action Item: Burnie to discuss this proposal at the July PDC Committee. Peer suggested that there be a brief history-type orientation on how the Districts previously conducted business. He said that this would provide new members with a tool to make a comparison on current procedures. The Steering Committee suggested that this orientation take place at the August PDC Committee. John suggested that there be some understandable process flow charts for this orientation. Don mentioned that Frank Dryden,s fees are$125 an hour, and this project could take approximately 45 hours to complete. Meeting with Huntington Beach Don said that there had been two meetings with the City of Huntington Beach. At the first meeting where he made a presentation, Don said that he could have upset one of the city members by not handing out his presentation notes beforehand. Don reported that he had sent a letter of apology and had received a reply. At the second meeting, the City of Huntington Beach had requested the Districts to participate in Minutes of the Steering Con,..,/ee , Page 4 June 25, 1997 a cooperative project. The cooperative project would involve the Districts in helping to fund the City of Huntington Beach,s deficient sewer system. Their long-term capital needs are estimated to cost$140 million. The more immediate costs are estimated to be at$7 million. Don mentioned that he sees the possibility of these type of requests happening more frequently in the future. Blake said that he had talked to Les Jones, Huntington Beach Public Works Director, and the four issues of concern were the Operations & Maintenance costs, capital improvements, revenue streams, and the reserve policies. Don asked if we could legally enter into this type of agreement with a particular city. Tom Woodruff replied that we could not; however,we could enter into some type of maintenance agreements. Regional Collection Systems Districts-wide Policies. Nancy Wheatley reported on EPA,s position regarding maintenance of regional sewer lines. She stated that because regional agencies are responsible for wastewater treatment for the communities that discharge to the regional system, EPA and the states were looking to the regional agencies for leadership in managing these local systems. She mentioned that while it is uncertain just how and when EPA might impose this type of requirement on regional agencies, she also stated that is was clear that EPA and the state regulatory agencies favor this regulatory approach. She suggested that the Board begin focusing on this issue in order to be prepared. Nancy stated that we needed to begin focusing on this issue to get ahead of the regulators. Nancy said that it was important to get Board buy-in and then involve Public Works Directors to work with our staff in a joint effort. Nancy said that this issue would be going to the OUTS Committee on Tuesday. Update on SAWPA Agreement Don reported that he had met with Neil Cline this afternoon and that Neil reported that SAWPA would be receiving a check for$11 million from the Bureau; therefore the Districts would then receive a check for$4 million. Don said that this, however, did not cover the interest, and that this issue would be addressed at a later time. Proposition 218 Judy mentioned that she had received a letter from Thomas Logan who was concerned about Prop 218 and its impact on the newly adopted user fees. Judy said that a letter was being sent out to Mr. Logan addressing his concerns. Judy mentioned that she had also been in contact with Mr. Jonathan Copple who was concerned about the$390 million in reserves, and wanted to know if these reserves were for a speck purpose. Mr. Logan wanted to attend the June 25 Board meeting, but Judy suggested that he attend the September FAHR Committee as this would be addressed then. CLOSED SESSION There was no need for a Closed Session. 4 Minutes of the Steering CGMites � Page 5 June 25, 1997 OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for July 30, 1997 at 5:30 p.m. ADJOURNMENT The meeting adjourned at 7:08 p.m. Submitted by: (� , XIII� Coring Chaudhry, Secretary Pr m H.M ..EMWmm1G WERING LOMMR1EF8iNNY ...O � AGED' ❑ canwLlNFO.REM FwW sm"' ...A n.M CIcgAeJ.AcnoNlTva ITEM ❑ JT.BDS.CONSENTTRANSMITTAL ❑ Jr.BIDS..DISCUSSION ro m ((NON-CONSENT)NSENT)CUSSIENT) ❑ PUBLIC HEARING Jr.BDS.MEETING DATE JT.BDB.AGENDA REM NG. MEETING DATE COMM.10.NO. DISTRICT NO. CONTACT FOR INFORMATION OMTS: OMITS (Originator) PDC: POC FAHR:7-9-97 FAHR ALL 2210,Gary G. Streed,2500 EXEC: EXEC T STEER: STEErc� Division No.,Name,and Extension JT.Bos:7-30-97 AGENDA WORDING AND RECOMMENDED ACTION(S(: Aaenda Wording: SEWER SERVICE CHARGES - PROPOSITION 218 CERTIFICATION (All Districts) FAHR Committee Recommendation: The Finance, Administration and Human Resources Committee referred this item to the Steering Committee at their meeting of July 30, 1997. Recommended Action(s): 1. Authorize staff to execute the Proposition 218 Certification as required by the County of Orange. CEOA REVIEW: Project is Exempt: NOT APPLICABLE DATE OF MOST RECENT BOAR ACTION ON THIS SPECIFIC REM: Date Notice of Exemption Filed. Negative Declaration Approved on Final EIR Approved on_arM Notice of Determination f0. an_ N/A CURRENT BUDGETICOST CURRENTYEAR CURRENTYEAR. YEAR-TO-0ATE REVISED BUDGET INFORMATION BUDGETAMOUNT TO-DATE BUDGET BALANCE TOTAL EXPENDITURES flr— a " ,..den' TOTAL BUDGETED AMT.:$ N/A N/A NIA N/A SOURCE: CORF JO DISTRICTS Schedule/Lim Items: AMOUNT OF TRANSFER: Schedule/Une Item: TOTAL PROJECT BUDGET ORIGINAL BUDGET PREVIOUS BUDGET BUDGET CHANGE REVISED TOTAL INFORMATION TOTAL CHANGES THIS AIT PROJECT BUDGET First Year m Budget: N/A N/A NIA $0.00 Master Plan Estimate: Year of First Costs: THIS AITNENDOR/PROJECT COST ORIGINAL BID,PO, CHANGE ORDERS, AMOUNT AMENDED INFORMATION CONTRACT FUNDS PREY. REQUESTED THIS PROJECT AMOUNT APPROVED AFT AMOUNT $0.00 WILL PROJECT REQUIRE ADDITIONAL PERSONNEL? NO REOUIRES BOARD POLICY ACTION? NOT APPLICABLE If YES,state numEer: _Permanent Limited Term If VES,explain in ADDITIONAL INFORMATION section R. Censor Pagel of 2 H:\WP.DTAV IN=101CRANEIFAHRIFAHR.97UULYTAMR97.52 ATTACHMENTS TRq HMrrTEE AGENDA(List): `J 1. Se Service Closes-Propoeltbn2l$CeMMWn Originator Date CONCURRENCES: Signature Date D Manager( r D i a) /� f yn7 ATTACHMENTS TO JOINT BOARDS AGENDA(LM) i ( ' b l/ 1. Sester Service Charges-Propo Aon21BCerBficuion Si aWre Date Debarment Hea (Or Designee) c.4e- Sign re Date Aeei ant General Manager(Or Designee) ADDITIONAL INFORMATION (Background and/or Summary) The County Tax Collector and Auditor-Controller have recently prepared a memo, together with a draft certification to all public agencies that utilize the County Tax rolls for collection of user charges or fees. Specifically, they are requiring the agency to sign a certification that the fees and charges are in compliance with the requirements of Proposition 218, that the agency will agree to defend, indemnity and hold harmless the County of Orange and all of its entities, agencies and officers; and that if any judgment is entered in favor of a claimant third party against the County or any of the indemnified parties, they ran offset the amount of judgment against any revenues collected. The estimated user fees to be Collected in 1997-98 as a separate line item on the property tax bill total $63,177,000 for all Districts. Collecting these fees on the tax bill is the most Cost-effective method of collection. Should there be a law suit regarding Proposition 218, the Districts would need to take the lead to protect our position and revenues. The requested certification does not change our position or increase our liability. Recommendation That staff be authorized to execute the Proposition 218 Certification as required by the County of Orange. c: Department Head AGM-Administration AGM-Operations General Manager Rm o "7 Page 2 of 2 H'\WP.DTATINM10\CRANEIFAHR6AHR9A ULYICERT21ePRP y SEWER SERVICE CHARGES PROPOSITION 218 CERTIFICATION The COUNTY SANITATION DISTRICT NO. 1 hereby certifies that the special assessments, special taxes, parcel taxes, charges, and/or fees which are to be placed on the FY 1997-98 property tax roll meet the requirements of Proposition 218 which added Articles XIIIC and MID to the State Constitution. The COUNTY SANITATION DISTRICT NO. 1 agrees to defend, indemnify and hold harmless the County of Orange, the Board of Supervisors of the County of Orange, the County of Orange Auditor-Controller and Treasurer- Tax Collector, and Orange County officers and employees from litigation over whether the requirements of Proposition 218 were met with respect to these special assessments, special taxes, parcel taxes, charges, and/or fees. If any judgment is entered against any indemnified party as a result of not meeting the requirements of Proposition 218 for these special assessments, special taxes, parcel taxes, charges, and/or fees, the COUNTY SANITATION DISTRICT NO. 1 agrees that the County of Orange may offset the amount of any judgment paid by an indemnified party from any monies collected by the County of Orange on behalf of the COUNTY SANITATION DISTRICT NO. 1, including property taxes, special assessments, special taxes, parcel taxes, charges, or fees. Signature of Authorized Representative of COUNTY SANITATION bISTRICT NO. 1 Title of Authorized Signer Date WOODRUFF,SPRADLIN&S11%&T y /,c�mr®ow curoum, MEMORANDUM TO: Chairman and Members of FAHR Committee County Sanitation Districts FROM: General Counsel DATE: June 26, 1997 RE: Request for Certification and Indemnification by the County of Orange re District User Charges By letter dated April 30, 1997, the County Auditor-Controller sent a detailed report to all Cities and Special Districts regarding 1997-98 special assessments, notifying that his office was changing the procedures for adding special assessments to the 1997-98 secured tax roll as a part of those procedures. The Auditor-Controller has indicated that he is requiring that each City, Special District and School District sign a certification statement certifying that the charges and/or fees which are being requested to be added to the property tax roll, comply with the provisions of Proposition 218, and his office has prepared a certification which also adds a significant legal requirement that the City or District agree to defend, indemnify and hold harmless the County and all of its officers and departments from litigation over Proposition 218 issues. My office has been requested to review this, and to report to your Committee and the Joint Boards as to the legal authority of the County to impose this requirement upon the Districts as a condition to adding our user charges to the 1997-98 tax roll. It is our opinion that neither the County Auditor-Controller nor the County Tax Collector has the authority to impose conditions such as requiring a certification of compliance with the provisions of Proposition 218, and/or to require a hold harmless and indemnification agreement in exchange for the Auditor-Controller including the charges on the tax roll. This opinion is based primarily on the provisions contained in Article IV, Chapter 3, Title 1 of the California Health & Safety Code, Sections 5470 at seq. This referenced Article is a comprehensive scheme of legislation available for use by all local government entities who wish to adopt rates or charges relating to services and facilities of a sewer and wastewater treatment system. Within this comprehensive scheme, are the provisions that allow the local entity that adopts an ordinance enacting charges to be collected on the tax roll, and the provisions are mandatory in their language, in that they provide that the County Auditor"shall' and the County Tax Collector"shall" perform the required duties of their offices, such as entering the required charges on the current assessment rolls and including the amounts of the fees or charges on the tax bills. yIq Chairman and Members of FAHR Committee County Sanitation Districts June 26, 1997 Page 2 Specifically, each year the Districts, as do many other local agencies, on or before August 101h, by action of the governing body, certify to the County Auditor a list of the lots or parcels of land as they appear on the current assessment roll that are subject to the fees or charges and the amounts of the installments to be paid. California Health & Safety Code Section 5474.5 provides: "The auditor shall enter on the current assessment roll the amounts of the installments of such fees or charges and interest and . . . " (Emphasis added) Section 5474.5 Additionally, Health & Safely Code Section 5474.6 provides: "The tax collector shall include the amounts of the installments of fees or charges and the interest on bills for taxes levied against the respective lots and parcels of land. . . " (Emphasis added) Section 5474.6 There is no grant of statutory authority to either the Auditor or the Tax Collector to impose contractual obligations or conditions upon those local entities who exercise their rights under this Article of the Health & Safety Code. Accordingly, we believe that the request by the Auditor-Controller is without legal basis. Notwithstanding the above, the Districts, of their own determination, may elect to provide the certification to the County of Orange and the Auditor-Controller and Tax Collector. It would seem certain that in the event of any litigation challenging the Districts' actions enacting their annual user fees, it would include the County as a party-defendant. The actions to have this done are, of course, those of the Districts, and in fact the Districts will be taking all possible measures to ensure that they comply with all of the applicable provisions of Proposition 21 B. I can also indicate to you that there is a great degree of concern being expressed by Cities and Special Districts throughout the State of California at this effort being made by County Auditors on a state-wide basis. I know of several Counties where Cities and Special Districts have in fact taken the position that there is no legal authority to impose this condition and are refusing to provide the certificate to their respective County Auditors. I am also aware of at least two Counties where, on the advice of County Counsel, the County Auditor has withdrawn the request. Here in Orange County, I am aware that a considerable number of Special Districts and a few Cities have expressed their displeasure and disagreement with the County's asserted right to impose this condition. Based r Chairman and Members of FAHR Committee County Sanitation Districts June 26, 1997 Page 3 thereon, I would suggest that I would report back to you by the end of July as to the current status of this proposal and whether the County intends to continue forward with the request. Obviously, the Districts, who annually receive many millions of dollars on property taxes, are placed at great risk in the event the Auditor-Controller and Tax Collector should refuse to carry out their duties and put our charges on the tax rolls because the Districts refuse to provide this certification. TH OMAS L. W06DRUFF GENERAL COUNSEL nww cc: Mr. D.F. McIntyre Mr. B.P. Anderson Ms. J.A. Wilson Mr. G.G. Streed NU.ms Wt 9TEVEN E. LEWIS AUOROR-CONTROLLER NTY O F F.N Ce WILDING 12 CIVIC CENTER 1U 9A.TA AMA.CA a2ra2•a11> ARIAREA C RAN G E A CODE aN-3�1a E>u OFFICE OF AUDITOR-CONTROLLER Tune 30, 1997 ATTENTION: Fnwtce Dimaon and Public Works Managers SUBJECT: 1997-98 Special Asaes=mcs Catificatiadlndannifi®400 Ilequeonaut This office has received sigm5lant resistance to implgrrmtOg Stan: Asso®tiou of County Audhots Guidefin on.Propocgon 219 as cudir +i_pamgraph 15 of my subject letter dazed April 30, L997. All= ta0uug to legal counsel, I am resanding such reglm m= for subject ��: catifi®tiaalmdaruui6mnon before placing special a."essmwts/Eo on the Courrty's p operty tax hills I will however require the—ached cmtihration. I believe the atmded catificanon addresses any mncenu you may have had, and I request your coaperatiou in responding to it. Please let me kaaw anImediaidy if you are unwilling to sign and ,I submit tt¢s new en'gone with my special assc oment/fee requests Addmanally. please note that all otber requirements stated m my letter of ApnH0,-i997 inchrdigg a certified resolution of yotr gove®rIg body durrnng the Audur-Controller to add your assescrem to the taz roll am apply. Auditor-CoNroller Attad men2 cc: lance b5ttertmier,chief Euauive Office Mke Ruant,Director. Stt&W Affaas,CEO Lou Watson, County Counsel Bob Ausdq Carnty Counsd .. i SAMPLE (Place on y=Lctterhead) SrECIAL ASSIESSAMM CEATInCAITON The (C5tylSpecial DistriWselwol District) hcdry rexii6es that she spode! %%sue special uses, parcel taxes, chuges mWor Sees which are to be placed on the FY 1997-98 ptnpcny tax roll havc bees duly adopted in accadarcc with law and are legal and valid. Signature ofAuthaizrd Repteuatauve of City EG CW Special District Board ofDimetom/School District Bard Title of Audatized Signer Due LAw w,,m of WOODRUFF, SPRADLIN & SMART A PNO =a A,.CoR O moN XH SOUTH PARKER STREET,SUITE 7000 N ORANGE,CA SSSU 4710 (7141538.7000 FAX 1714)$35.7797 DIRECT 0b (714)5043805 DIRECT FAX(714)SBS-2505 July 11, 1997 Mr. Steven E. Lewis, County Auditor - Controller County of Orange 12 Civic Center Plaza Post Office Box 567 Santa Ana, CA 92702-0567 Re: County Sanitation Districts of Orange County Sanitary Sewer Service Charges Dear Mr. Lewis: On behalf of County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7 and 11 of Orange County, California, we wish to acknowledge and thank you for your letter dated June 30, 1997, advising that you were withdrawing your previous request of April 30, 1997, that all public agencies seeking to have their assessments or service charges collected on the Tax Roll pursuant to authorized provisions of statutory law, execute a certificate of compliance and indemnification. We have reviewed the revised certificate which you have now requested to be executed, and regrettably, we still must advise that the appropriate officers of the Districts are unable to execute that certificate. While we certainly recognize the concern of you and perhaps the other auditors throughout the State of California concerning the possible legal challenges to adoption of fees, charges and assessments, we must indicate that we are unable to have the Chairman of the District or even the general management execute the proposed certificate because it is essentially requiring them to certify as to a matter of law. Those elected officials and appointed management are simply not trained or able to make that judgment which rightfully will only be able to be made by an appropriate court of proper jurisdiction. In all probability, that will be the California Supreme Court. As for a possibility of General Counsel executing the certificate, that is analogous to having General Counsel issue a bond counsel opinion, which I, as the Districts' General Counsel, am not prepared to issue. I am prepared to provide to you a statement that says that the Districts have followed the appropriate procedures of law for the enactment and 7FRRYC.ANDRV.S•MMY E BWMNNI•M.WW BOBAK•BLTIY C.BMM•IONN L CAVMACON•CRA10a FADRiNQIGV RODFL.R.Dm•WEDM W.WRB1 -KK J.F9RRL'BGEWFR•URB E lER#BY•MAGDAIEU UNMWIA\T M"F..ttw IASON B R69NR%-IDNN0.W W.NFNNNW&SWT.M.-D Wl.9 CE-DANIELK SPMDIN•A NR.WAM•TNOMMLW MUFT Mr. Steven E. Lewis, July 11, 1997 Page 2 adoption of its ordinances wherein their user charges have been adopted. But, anything in addition to that is simply beyond the legal parameters that I am able to provide. It is my recommendation that your office withhold any further requests for certificates until such time as there is a more definitive evaluation of the law by rulings of courts of appeal or the California Supreme Court, so that all parties will know exactly what the applicable rules will be. In the meantime, I am simply unable to advise my clients that they should execute the certificate which you have submitted. I will be more happy than to review this with you or with County Counsel if you have any thoughts, concerns or suggestions. Based on the above, I have advised my client to proceed on the assumption that your office will not require this certificate to be executed by the Districts and that the user charges that have been recently enacted by ordinance and will be submitted to your office in accordance with all of the other requirements of your April 30th letter, will be placed on the Tax Rolls for FY 97-98. If that is not the action that your office will take, I would ask that you notify me immediately so that we may consider other alternatives. Very truly yours, WOODRUFF, SPRADLIN & SMART HOMAS L. WOODRUFF TLW mra Enclosures cc: John Collins, Joint Chairman Boards of Directors Donald F. McIntyre, General Manager Gary G. Streed, Director of Finance For Bd.sue.uvx onv AGENDA ❑ COMM,INFO,ITEM ITEM ❑ COVML ACTION ITEM ❑ Jr.BDS.CONSENT TRANSMITTAL b� ❑ JT.BIDS,DISCUSSIONTRANSMITTAL (NONLON$ENT) ❑ Pl$❑C HEARING JT.BDS.MEETING DATE ,FT.FIGS.AGENDA REM ND. MEETING DATE COMM.10.NO. DISTRICT NO. CONTACT FOR INFORMATION OMITS: OMITS (Ongmator) POC: POO FAHR: FAHR All EXEC; EXEC 2150,Jean Tappan,2001 STEER: 7130197 STEER 11 DMsm No..Name,and Fsemen Jr.BOB AGENDA WORDING AND RECOMMENDED ACTION(S): Agenda Wordina: AGENDA ITEMS FOR REVIEW BY WORKING COMMITTEES IN AUGUST (All Districts): Review of the items scheduled for action/discussion by the Operations, Maintenance and Technical Services Committee, the Planning, Design and Construction Committee, and the Finance, Administration and Human Resources Committee at their meetings in August. Recommended Action(s): This is an information item. CEQA REVIEW: Project is Exempt:NOT APPLICABLE Date Notice of Exemption Filed: DATE OF MOST RECENT BOARD ACTION ON THIS SPECIFIC REM: Negative Declaration Approved On Not Applicable Final EIR Approved on and Notice Of Determination fled on CURRENT BUDGETICOST INFORMATION CURRENTYEAR CURRENT YEAR. YEAR-TO-DATE REVISED BUDGET BUDGET AMOUNT TO-DATE BUDGET BALANCE TOTAL EXPENDITURES U.1 Budget Nw Tnnskrs TOTAL BUDGETED Ali$ N/A N/A N/A N/A SOURCE: CORF JO DISTRICTS Schedule/Line Items: AMOUNT OF TRANSFER: ScheduMJLine Item: TOTAL PROJECT BUDGET INFORMATION ORIGINAL PREVIOUS BUDGET BUDGET CHANGE REVISED TOTAL BUDGETTOTAL CHANGES THIS AIT PROJECT BUDGET First Year in Budget: Master Plan Estimate: $0.00 Year of First Costs: THIS AITIVENDOR/PROJECT COST ORIGINAL BID,PO, CHANGE ORDERS, AMOUNT AMENDED INFORMATION CONTRACT FUNDS PREV. REQUESTED THIS PROJECT AMOUNT APPROVED AFT AMOUNT $0.00 WILLPROJECT REQUIRE ADDITIONAL PERSONNEL? NO REQUIRES BOARD POLICY ACTION?NOT APPLICABLE IIY S state number: Permanent Limtled Term If YES explain in ADDITIONAL INFORMATION section N vvV DTANOMIMGIASTEERING COMMIREDeklav rS FOR AVG.GO Page 1 of 2 ATTACHMENTS TO vMnTEE AGENDA(Ust)' Vy Onginator Date CONCURRENCES: ATTACHMENTS TO JOINT BOARDS AGENDA(list) 1 Signature Dale Dmsion Manager(Or Designee) Signature Date Deparbnent Head(Or Designee) Signature Dale Assistant General Manager Or Designee) ADDITIONAL INFORMATION(Background and/or Summary) Staff routinely prepares a listing of items that are scheduled to be presented to the working committees and the Boards at their next monthly meetings. This allows the Steering Committee the opportunity to review these items early enough to make reassignments in the review or approval process. The following items are scheduled to be considered by the Committees in August: OMTS Committee: No meeting scheduled in August PDC Committee: 1. Actions re the Orange County Regional Water Reclamation Project: approve consultant selection for CEOA/Preliminary Engineering; approve consultant selection for Public Information Program;and discuss Board approval process. 2. Approve Addendum No. 1 to the PSA with Carollo Engineers re Job No.J-39,Ocean Ouffall Investigation and Minor Repairs. 3. Approve Change Order No. 1 to Contract No.3-35R-1,Magnolia Relief Trunk Sewer, Westminster Avenue to Trask Avenue. 4. Approve Change Order No.6 and Closeout Agreement to Contract No.5-37-3, Replacement of Pacific Coast Highway Gravity Sewer between Bitter Point Pump Station and Newport Boulevard. 5. Seismic upgrade program (information only) FAHR Committee: No meeting scheduled in August c: AGM-Administration AGM-Operations General Manager HN DTAMOWMGMIS MNGG rn`EEIaTN rlf AUG Do Page 2 of 2