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
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❑ canwLlNFO.REM FwW sm"' ...A
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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
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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