HomeMy WebLinkAbout1998-04 County Sanitation Districts
of Orange County,California
P.O. Box 8127 a 109"Ellis Avenue
Fountain Valley,CA 92728-8127
Telephone: (714)962-2411
AMENDED
MINUTES OF THE COMBINED STEERING AND AD HOC COMMITTEES
MEN
Wednesday, April 22, 1998 at 5:30 p.m.
A meeting of the Steering Committee and the Ad Hoc Committee re Strategic Plan of the County
Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California was held on
Wednesday, April 22, 1998, at the Districts'Administrative Office.
ROLL CALL
The roll was called and a quorum declared present, as follows:
OTHERS PRESENT:
STEERING COMMITTEE Thomas L. Woodruff, General Counsel
PRESENT: Thomas M. Dawes, Consultant
John J. Collins, Joint Chairman Ryal Wheeler
George Brown, Chair, FAHR
Burnie Dunlap, Chair, PDC STAFF PRESENT:
Donald F. McIntyre, General Manager
AD HOC COMMITTEE Blake P. Anderson, Assistant General
PRESENT: Manager
John J. Collins, Joint Jean Tappan, Committee Secretary
George Brown, Chair, FAHR Michelle Tuchman, Director of
Shirley Dettloff, Chair, District 11 Communications
David Ludwin, Director of Engineering
ABSENT: Jim Herberg, Planning Supervisor
Peer A. Swan, Vice Joint Nancy Wheatley, Director of Technical
Chairman Services
Pat McGuigan, Chair, OMTS Greg Mathews, Senior Administrative
Bill Steiner, Director/Supervisor Analyst
Jan Debay, Chair, District 5
APPOINTMENT OF CHAIR PRO TEM
No appointment was necessary.
PUBLIC COMMENTS
There were no comments by any member of the public.
Minutes of the Joint Steen/Ad Hoc Committees Meeting
Page 2
April 22, 1998
RECEIVE, FILE AND APPROVE MINUTES OF PREVIOUS MEETING
The draft minutes of the March 25, 1998 meeting of the Steering Committee were approved as
mailed.
REPORT OF THE STEERING COMMITTEE CHAIRMAN
Joint Chairman Collins did not make a report.
REPORT OF THE GENERAL MANAGER
General Manager Don McIntyre stated that there were five additional discussion items not listed on
the agenda.
1. An anonymous letter was sent to Huntington Beach's Environmental Board that made
allegations that the Districts is not dealing with an increase in toxics, such as heavy metals, in
effluent and biosolids, because of a decrease in the number of inspectors. Technical Services
Director Nancy Wheatley addressed the allegations, and while most of the information in the
letter is taken from our Annual Report, the conclusions are misleading. There is no cause for
concern at this time, although some of the numbers are increasing because flows are
increasing. She indicated that there are currently 11 inspectors, and they are doing an
excellent job of monitoring our pernittees. In fact, mass and concentrations have been
reduced as a result of an aggressive source control program.
There have been no calls from any agency listed as receiving copies, nor from the press.
Director Dettloff suggested contacting Peter Vanek directly to see he or if any member of the
Environmental Board had concerns. Ms. Wheatley indicated that she would follow up.
2. As a member of the Orange County Business Council (OCBC), staff was offered the
opportunity to join a delegation of leaders to visit with the leadership in the state government
and discuss issues of importance to the County. There were over 50 representatives from
Orange County, including Nancy Wheatley. Ms. Wheatley reported on the activities and
meetings that were held for delegates.
The following paragraph was amended at the 527198 Steering Committee meeting at the request of
Director Dunlap, to read..,
Staff then asked for direction regarding promoting the activities of the OCBC. After
discussion, it was determined that the additional Directors involvement should be addressed
only when appropriate issues that affecting the Districts occur.
3. Greg Mathews described a problem that arose after a bid opening and how staff handled it.
Consequently, new formal protest procedures and a better bid review process are being
developed.
Minutes of the Joint Sleenng/Ad Hoc Committees Meeting
Page 3
April 22, 1998
4. Blake Anderson discussed a June ballot measure, Proposition 224, and the impacts on the
Districts should the voters approve it. It would require that if stale funds are involved, the low
bid would have to be sent to the State Controller's office to see if state engineers could do the
design cheaper. The Committee directed staff to present the information at the three working
committee meetings in May to educate the Directors on potential impacts on all governmental
entities.
5. The PDC Committee's recommendation to re-bid the design of Job No. J-42 was discussed.
David Ludwin, Director of Engineering, explained that additional information has been received
that, if known at the time of the PDC Committee meeting, might have resulted in a
recommendation to award a contract. This was a low bid from Parsons. After discussion,
staff was directed to return the item to the PDC Committee for further consideration, and that
representatives from both consulting firths be invited to attend the meeting. This action is
different from that taken at the last PDC Committee meeting, which was to tighten the
specifications and rebid.
REPORT OF GENERAL COUNSEL
General Counsel Tom Woodruff reported that Penn Wilson has settled and the lawsuit will be
dismissed.
DISCUSSION ITEMS
Steering Committee Discussion Items:
1. Proposed Changes to July Working Committees Meeting Schedule
The Steering Committee approved changes to the July meeting dates for the working
committees as follows:
OMTS: from July 1 to July 8
PDC: from July 2 to July 9
FAHR: from July 8 to July 15
2. Request for Fee Refund from the City of Garden Grove
Nancy Wheatley discussed the letter request and explained how staff previously handled
these issues. However, the ordinance does not allow Class III permit exemptions to
cities. Policy needs to be developed that clearly states when exemptions are allowed.
The Steering Committee directed staff to submit the issue to the FAHR Committee with a
detailed staff report on the policy, not the Citys request.
3. Review Agenda Items Scheduled to be Presented to Working Committees in May
The Steering Committee reviewed the items that are scheduled for review and added two
information items to all agendas; the budget and work plan overviews and a discussion of
the impacts on the Districts if Proposition 224, which is on the June ballot, is passed.
Minutes of the Joint SteenngrAd Hoc Committees Meeting
Page 4
April 22, 1998
APPROVE MINUTES OF PREVIOUS AD HOC COMMITTEE
The minutes of the March 19, 1998 Ad Hoc Committee meeting were approved as drafted.
REPORT OF THE AD HOC COMMITTEE RE STRATEGIC PLAN CHAIRMAN
Chairman Brown did not make a report.
Ad Hoc Committee re Strategic Plan Discussion Items:
1. Discussion on Issues Raised by City of Garden Grove in April 6, 1998 Letter
Don McIntyre reported that he talked with Garden Grove's City Manager about their
concems. There will be a 1/2 day meeting scheduled with all city engineers and public
works directors at the end of July to discuss our strategic plan's possible impacts on the
cities.
2. Review Strategic Plan calendar of events for April, May, and June
Jim Herberg reviewed the calendar of events for the next quarter with the members. There
were no changes and the meetings will be scheduled.
CLOSED SESSION
The General Managers performance evaluation, scheduled to be considered during the closed
session, was deferred.
OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY
Don McIntyre reported that the cost per million gallons is$450.15; the benchmark is $481.
MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT
MEETING
No matters were identified.
CONSIDERATION OF UPCOMING MEETINGS
The next Steering Committee meeting is scheduled for May 27, 1998 at 5:30 p.m.
ADJOURNMENT
The Chair declared the meeting adjourned at 7:10 p.m.
Minutes of the Joint Steen*/Ad Hoc Committees Meeting
Page 5
April 22, 1998
Submitted by:
Jean Tappan, Steering Committee Secretary
M Wp.MelopenNl41 INGWMMRIEEVBUPR017]BBI.MWT
Minutes of the Joint Sleen*Ad Hoc Committees Meeting
Page 5
April 22, 1998
ubmittad by:
n Tappan, Steen fig aommittee Secretary
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S of Orange County,California
MA 271998 P.O. Box 8127 . 10844 Ellis Avenue
Fountain Valley,CA 92728-8127
By Telephone: (714)962-2411
DRAFT
MINUTES OF THE COMBINED STEERING AND AD HOC COMMITTEES
Wednesday, April 22, 1998 at 5:30 p.m.
A meeting of the Steering Committee and the Ad Hoc Committee re Strategic Plan of the County
Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California was held on
Wednesday, April 22, 1998, at the Districts'Administrative Office.
ROLL CALL
The roll was called and a quorum declared present, as follows:
OTHERS PRESENT:
STEERING COMMITTEE Thomas L. Woodruff, General Counsel
PRESENT: Thomas M. Dawes, Consultant
John J. Collins, Joint Chairman Ryal Wheeler
George Brown, Chair, FAHR
Burnie Dunlap, Chair, PDC STAFF PRESENT:
Donald F. McIntyre, General Manager
AD HOC COMMITTEE Blake P. Anderson, Assistant General
PRESENT: Manager
John J. Collins, Joint Jean Tappan, Committee Secretary
George Brown, Chair, FAHR Michelle Tuchman, Director of
Shirley Dettloff, Chair, District 11 Communications
David Ludwin, Director of Engineering
ABSENT: Jim Herberg, Planning Supervisor
Peer A. Swan, Vice Joint Nancy Wheatley, Director of Technical
Chairman Services
Pat McGuigan, Chair, OMTS Greg Mathews, Senior Administrative
Bill Steiner, Director/Supervisor Analyst
Jan Debay, Chair, District 5
APPOINTMENT OF CHAIR PRO TEM
No appointment was necessary.
PUBLIC COMMENTS
There were no comments by any member of the public.
a Minutes of the Joint Steerin !Ad Hoc Committees Meeting
Page 2
April 22, 1998
RECEIVE, FILE AND APPROVE MINUTES OF PREVIOUS MEETING
The draft minutes of the March 25, 1998 meeting of the Steering Committee were approved as
mailed.
REPORT OF THE STEERING COMMITTEE CHAIRMAN
Joint Chairman Collins did not make a report.
REPORT OF THE GENERAL MANAGER
General Manager Don McIntyre staled that there were five additional discussion items not listed on
the agenda.
1. An anonymous letter was sent to Huntington Beach's Environmental Board that made
allegations that the Districts is not dealing with an increase in toxics, such as heavy metals, in
effluent and biosolids, because of a decrease in the number of inspectors. Technical Services
Director Nancy Wheatley addressed the allegations, and while most of the information in the
letter is taken from our Annual Report, the conclusions are misleading. There is no cause for
concern at this time, although some of the numbers are increasing because flows are
increasing. She indicated that there are currently 11 inspectors, and they are doing an
excellent job of monitoring our permiltees. In fact, mass and concentrations have been
reduced as a result of an aggressive source control program.
There have been no calls from any agency listed as receiving copies, nor from the press.
Director Dettloff suggested contacting Peter Vanek directly to see he or if any member of the
Environmental Board had concerns. Ms. Wheatley indicated that she would follow up.
2. As a member of the Orange County Business Council (OCBC), staff was offered the
opportunity to join a delegation of leaders to visit with the leadership in the state government
and discuss issues of importance to the County. There were over 50 representatives from
Orange County, including Nancy Wheatley. Ms. Wheatley reported on the activities and
meetings that were held for delegates.
Staff then asked for direction regarding promoting the activities of the OCBC. After
discussion, it was determined that the Directors should be addressed only when issues that
affect the Districts occur.
3. Greg Mathews described a problem that arose after a bid opening and how staff handled it.
Consequently, new formal protest procedures and a better bid review process are being
developed.
4. Blake Anderson discussed a June ballot measure, Proposition 224, and the impacts on the
Districts should the voters approve it. It would require that if state funds are involved, the low
bid would have to be sent to the Slate Controller's office to see if state engineers could do the
design cheaper. The Committee directed staff to present the information at the three working
committee meetings in May to educate the Directors on potential impacts on all governmental
entities.
Minutes of the Joint Steen. 1. Hoc Committees Meeting \"
Page 3
April 22, 1998
5. The PDC Committee's recommendation to re-bid the design of Job No. J-42 was discussed.
David Ludwin, Director of Engineering, explained that additional information has been received
that, if known at the time of the PDC Committee meeting, might have resulted in a
recommendation to award a contract. This was a low bid from Parsons. After discussion,
staff was directed to return the item to the PDC Committee for further consideration, and that
representatives from both consulting firms be invited to attend the meeting. This action is
different from that taken at the last PDC Committee meeting, which was to tighten the
specifications and rebid.
REPORT OF GENERAL COUNSEL
General Counsel Tom Woodruff reported that Penn Wilson has settled and the lawsuit will be
dismissed.
DISCUSSION ITEMS
Steering Committee Discussion Items:
1. Proposed Changes to July Working Committees Meeting Schedule
The Steering Committee approved changes to the July meeting dates for the working
committees as follows:
OMTS: from July 1 to July 8
PDC:' from July 2 to July 9
FAHR: from July 8 to July 15
2. Request for Fee Refund from the City of Garden Grove
Nancy Wheatley discussed the letter request and explained how staff previously handled
these issues. However, the ordinance does not allow Class III permit exemptions to
cities. Policy needs to be developed that clearly states when exemptions are allowed.
The Steering Committee directed staff to submit the issue to the FAHR Committee with a
detailed staff report on the policy, not the City's request.
3. Review Agenda Items Scheduled to be Presented to Working Committees in May
The Steering Committee reviewed the items that are scheduled for review and added two
information items to all agendas; the budget and work plan overviews and a discussion of
the impacts on the Districts if Proposition 224, which is on the June ballot, is passed.
APPROVE MINUTES OF PREVIOUS AD HOC COMMITTEE
The minutes of the March 19, 1998 Ad Hoc Committee meeting were approved as drafted.
REPORT OF THE AD HOC COMMITTEE RE STRATEGIC PLAN CHAIRMAN
Chairman Brown did not make a report.
Minutes of the Joint Steeriog/Ad Hoc Committees Meeting
Page 4
April 22, 1998
Ad Hoc Committee re Stratecic Plan Discussion Items:
1. Discussion on Issues Raised by City of Garden Grove in April 6, 1998 Letter
Don McIntyre reported that he talked with Garden Grove's City Manager about their
concems. There will be a 1/2 day meeting scheduled with all city engineers and public
works directors at the end of July to discuss our strategic plan's possible impacts on the
cities.
2. Review Strategic Plan calendar of events for April, May, and June
Jim Herberg reviewed the calendar of events for the next quarter with the members. There
were no changes and the meetings will be scheduled.
CLOSED SESSION
The General Manager's performance evaluation, scheduled to be considered during the closed
session, was deferred.
OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY
Don McIntyre reported that the cost per million gallons is$450.15; the benchmark is $481.
MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT
MEETING
No matters were identified.
CONSIDERATION OF UPCOMING MEETINGS
The next Steering Committee meeting is scheduled for May 27, 1998 at 5:30 p.m.
ADJOURNMENT
The Chair declared the meeting adjourned at 7A0 p.m.
Submitted by:
I
an Tappan, Steering o mittee Secretary
MW.NaYOe^m�41EEflING C0.MMIIlEflBBNPRb13R0 Mlnuls.Ox
STATE OF CALIFORNIA )
) SS.
COUNTY OF ORANGE )
Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice
and the Agenda for the joint meeting of the Steering and Ad Hoc Re Strategic Plan Committees held
on Wednesday, April 22, 1998, was duly posted for public inspection in the main lobby of the
Districts' offices on Thursday, April 16, 1998.
IN WITNESS WHEREOF, I have hereunto sett my hand this 22nd day of April, 1998.
Penny Kyle, Be e ry each of the Boards of
Directors of Cc S itation Districts Nos. 1, 2, 3, 5,
6, 7, 11, 13& 14 of Orange County, California
Posted: April 16 , 1998,
By:
Signature
wptlodgm%1r-comm\pWinUJm
COUNTY SANITATION DISTRICTS OF ORArl COUNTY, CALIFORNIA
BOARD SECRETARY(2)
phone:
(714)962 2411 April 16, 1998
mailing address:
PO. Box8127
fountain Volley.CA
9272Ba127
meet address: NOTICE OF COMBINED MEETING
1 OB44 Ellis Avenue
Fau main
7W06&7o1a STEERING COMMITTEE and
AD HOC COMMITTEE RE STRATEGIC PLAN
Member COUNTY SANITATION DISTRICTS
Agencies
a NOS. 1, 2, 3, 5, 6, 7, 11, 13 AND 14
Must OF ORANGE COUNTY, CALIFORNIA
Anahe,m
Brea
Buena Park WEDNESDAY, APRIL 22, 1998 - 5:30 P.M.
Cypress
Fountain Valley
Fullerton
Huntington Beach
Irvine DISTRICTS' ADMINISTRATIVE OFFICES
Le Habra
La Palma 10844 ELLIS AVENUE
`wportm Beach chh c
Ne FOUNTAIN VALLEY, CALIFORNIA 92708
Orange
Placenbe
Sal a Ana
Seel Beach
Stanton
r sun A regular meeting of the Steering Committee of the Joint Boards of Directors
Willa Parkof Count Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Oran
yoWh Linda y e g
County of orange County, California, will be held at the above location, date and time. The Ad
Hoc Committee re Strategic Plan will meet with the Steering Committee to
sanitary Districts discuss issues of mutual concern.
Cos.Mese
Gerdes Grove
Midwey C[y
Weser Districts
Irvine Ranch
A Pubhc W§soresesr and Ennronmemal Management Agency Communed to Protecting the Since -:
ROLL CALL
Roll Call:
Meeting Date: April 22, 1998 Meeting Time: 5:30 p.m.
Meeting Adjourned:
Steerina Committee Members
John J. Collins, Joint Chairman................................
Peer A. Swan, Vice Joint Chairman..........................
George Brown, Chair, FAHR....................................
Burnie Dunlap, Chair, PDC.......................................
Pat McGuigan, Chair, OMITS...................................
Bill Steiner, Supervisor.............................................
Ad Hoc Committee Members
John J. Collins, Joint Chairman................................
Peer A. Swan, Vice Joint Chairman..........................
George Brown. Chair................................................
Jan Debay, Chair, District 5......................................
Shirley Dettloff, Chair, District 11..............................
Pat McGuigan, Chair, OMTS....................................
Bill Steiner, Supervisor.............................................
Others
Thomas L. Woodruff, General Counsel....................
Thomas M. Dawes, Consultant.................................
Staff Present
Donald F. McIntyre, General Manager......................
Blake P. Anderson, Asst. General Manager..............
Gary Streed, Director of Finance..............................
David Ludwin, Director of Engineering......................
Doug Stewart, Engineering Manager........................
Jim Herberg, Planning Engineer...............................
Michelle Tuchman, Director of Communicaliom......._
Nancy Wheatley, Director of Technical Services.......
Jean Tappan, Secretary...........................................
c: Board Secretary
Debbie Lacuna
April 16, 1998
AGENDA
COMBINED MEETING OF THE
STEERING AND AD HOC COMMITTEES
COUNTY SANITATION DISTRICTS
NOS. 1, 2, 3, 5, 6, 7, 11, 13 AND 14
OF ORANGE COUNTY, CALIFORNIA
WEDNESDAY, APRIL 22, 1998 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 and
Ad Hoc Committees 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 and Ad Hoc Committees 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.
-2- April 22, 1998 Agenda
Matters of interest addressed by a member of the public and not listed on this agenda cannot
action taken by the Committees except as authorized by Section 54954.2(b).
APPROVE MINUTES OF PREVIOUS STEERING COMMITTEE MEETING
Approve draft minutes of the March 25, 1998 Steering Committee meeting.
REPORT OF STEERING COMMITTEE CHAIR
REPORT OF GENERAL MANAGER
REPORT OF GENERAL COUNSEL
STEERING COMMITTEE DISCUSSION ITEMS (Items 1-3)
1. Proposed Changes to July Working Committees Meeting Schedule
2. Request for Fee Refund from the City of Garden Grove (Nancy Wheatley)
3. Review Agenda Items Scheduled to be Presented to Working Committees in May
(Information item only)
APPROVE MINUTES OF PREVIOUS AD HOC COMMITTEE MEETING
Approve draft minutes of the March 19, 1998 Ad Hoc Committee meeting.
REPORT OF THE AD HOC COMMITTEE CHAIR
STEERING AND AD HOC COMMITTEES DISCUSSION ITEMS (Items 1-2)
1. Discussion on Issues Raised by City of Garden Grove in April 6, 1998 Letter
(copy attached)
2. Review Strategic Plan calendar of events for April, May, and June (Jim Herberg)
-3- April 22, 1998 Agenda
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 California Public Records Act, may be reviewed by the
Directors during a permitted dosed 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 Wednesday, May 27, 1998 at 5:30 p.m.
The next combined Steering and Ad Hoc Committees meeting is scheduled for Wednesday,
June 24, 1998 at 5:30 p.m.
it
�M+EbHY�'d+�EEFWG CCM4lREEYRNGR'OIYdb Y/Ntc�R 1+trc
Notice 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)965-4400(City Hall)
Secretary. Jean Tappan (714)593-7101
(714)962-0356(Fax)
r
County Sanitation Districts
of Orange County,California
P. O. Box 8127 • 10844 Ellis Avenue
Fountain Valley,CA 92728-8127
Telephone: (714)962-2411
DRAFT
MINUTES OF THE STEERING COMMITTEE
Wednesday, March 25, 1998 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, March 25, 1998, at the Districts'
Administrative Office.
ROLL CALL
The roll was called and a quorum declared present, as follows:
OTHERS PRESENT:
PRESENT: Thomas L.Woodruff,General Counsel
John J. Collins,Joint Chairman Jan Debay,Chair,District 5
Peer A.Swan,Vice Joint Chair Kent Nelson
George Brawn,Chair, FAHR Ryal Wheeler
Burnie Dunlap,Chair, PDC
Pat McGuigan,Chair,OMTS STAFF PRESENT:
Donald F.McIntyre,General Manager
ABSENT Blake P.Anderson,Assistant General Manager
Bill Steiner,Director/Supervisor Ed Hodges,Director of General Admin. Services
Mike Peterman, Director of Human Resources
Michelle Tuchman, Director of Communications
Jean Tappan,Committee Secretary
APPOINTMENT OF CHAIR PRO TEM
No appointment was necessary.
PUBLIC COMMENTS
Kent Nelson addressed the Committee members on the proposed use of non-union painters. David
Hamilton, the business agent for 501, asked Kent to represent him. Their main concern is the
message it sends to Districts' employees by replacing permanent employees whose positions are
scheduled to be eliminated with non-union contract workers. There is also some concern about
administering a contract, such as the one proposed with Dupont, for a ten-year period. It is likely that
additional staff will have to be hired to oversee such a large-scale contract. In the past, summer
crews painted structures and tunnels.
Minutes of the Steering Committee Q
Page 2
March 25, 1998
The General Manager asked that Discussion Item 3, the Dupont Paint Contract, be moved so that it
could be discussed first.
RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING
The draft minutes of the February 25, 1998 Joint Steering and Ad Hoc Committees meeting were
approved as mailed.
REPORT OF THE COMMITTEE CHAIR
The Committee Chair did not make a report.
REPORT OF THE GENERAL MANAGER
The General Manager mentioned that the'contraption' in the parking lot will be used at the City
Manager's meeting tomorrow to demonstrate the amount of rainwater inflow through holes in manhole
covers and frames.
Mr. McIntyre also indicated that the Districts received word that several manhole covers were
removed in the City of Irvine to relieve flooding and the covers were then lost. It will be difficult to
determine who actually removed the covers, but this is a very serious issue. We may, in the future,
have to decide to what extent we should make an issue of this kind of action. Director Swan
indicated that this is a policy question—what should be our response as an organization. Director
Dunlap asked if this issue is on the agenda for the City Managers meeting, and to let the cities aware
that we are evaluating the results of these actions. Chairman Collins indicated that he would
recommend that when these actions occur, the General Manager calls the City Manager and then
follow up with a letter stating ramifications; and also that the Joint Chairman sends a letter to the
Mayor. The Districts should then work with the cities to fix the problem area through cooperative
projects.
Action Item: General Counsel will research and determine what kind of enforcement powers we
have in these situations,
Mr. McIntyre mentioned that the February flow averaged 284 mgd, an increase of 40 mgd. This has
added 3.3 mgd on the and-of-year mgd number.
The Board of Supervisors has set April 14 to hear protests on the consolidation of the Districts.
The schedule for Strategic Plan workshops was discussed. At the Ad Hoc meeting, the April 25
workshop was changed to May 9. The May 9 workshop was originally scheduled as a budget review
workshop. It was recommended that a new date for a budget workshop be decided after the budget
goes through the working committees. The Directors may decide a special workshop isn't necessary.
It was also recommended that dates be added to the schedule a quarter at a time (May, June,
July/August, September, October, etc.). Staff is currently trying to get a community calendar to avoid
future conflicts.
j Minutes of the Steering Committee
Page 3
March 25, 1998
REPORT OF GENERAL COUNSEL
General Counsel discussed the lawsuit against Penn-Wilson. Discussions are continuing. He also
updated the members of the status of the County's cases against Merrill Lynch and others. The case
against Merrill Lynch is scheduled to go to trial in September.
DISCUSSION ITEMS (Nos. 1-5)
3. Dupont Paint Contract—Use of Non-union Labor
Ed Hodges, Director of General Services Administration, described the proposed project,
explaining the methodology, not the requirements of a contract. He said that staff is
looking to change the way painting is done within the treatment plants, moving towards a
more strategic planning mode. The Five Year Staffing Plan calls for a reduction in the
number of painters, from 7 to 4. A contractor would do the majority of the work the
painters have done, that is, tunnels, repainting equipment and limited process painting.
The bigger pieces of equipment and structures were usually painted by outside
contractors, either through separate small contracts or included in larger construction
projects. A contractor would do it all if this project is approved. Any contract would
include a 30-day termination clause.
The Directors questioned the union vs. non-union workforce, as well as issuing a contract
rather than going through the bid process.
Kent Nelson commented that if management goes ahead with a contract with Dupont it
looks like management prefers non-union labor. The Directors stated that this was an
issue of being stewards of the public's money and if there are cost savings involved as a
result of the contract, it should be considered.
Mr. Hodges stated that Dupont has conducted a survey of the plants and would bring all
process equipment to Condition 1 and would maintain at Condition 2.
After further discussion, the members of the Steering Committee recommended that the
issue be presented at a future OMTS Committee meeting, including a discussion on why
the project would be a PSA, rather than putting it out for bid. Director Swan asked if an
employee group could make a bid. This would be allowed.
1. OCSD Flag
Michelle Tuchman discussed the possibility of flying a new OCSD flag in the front of the
Administration Building, along with the US and CA flags. The members of the Steering
Committee indicated no interest at this time.
2. Watershed Management in the Santa Ana River
Blake Anderson made a presentation to the Steering Committee on how watershed
management in the Santa Ana River Basin affects our agency. He discussed the results
Minutes of the Steering Committee f
Page 4
March 25, 1998
of flooding in the watershed on ground water and Santa Ana River water quality, including
the problem of dairy milk-barn water and biosolids disposal, and increasing salt and
nitrogen counts in the groundwater.
Blake and Nancy Wheatley are preparing a white paper on this issue describing the
existing role of the agency and the proposed formal entity to address these issues of
concern with concerned parties in Orange, San Bernardino, Riverside and Chino. Staff is
continuing to work with other agencies to figure out a way to get federal funding to
evaluate this regional problem. One item that will be discussed in the white paper is
adding SAWPA as a member of the Districts' Board of Directors in return for our
becoming a member of the SAWPA Board of Directors. Another issue is the blending of
wastewater into groundwater for ultimate use as drinking water. Only 50% of the drinking
water can be reclaimed water, therefore, it is important that the water quality of the Santa
Ana River is as good as it can be.
Director Swan indicated that the 1968 agreement with SAWPA addresses water quality
standards and this document should be referenced in the white paper.
Mr. McIntyre stated staff will present the white paper to the Steering Committee next
month. He also indicated that this regional issue will be a major topic in the next update
of the Strategic Plan
4. Steering Committee and Board Meeting Start Times
Michelle Tuchman said that the Directors overwhelmingly prefer a Board Meeting start
time of 6:30 rather than 7:30 p.m. The members of the Steering Committee decided that
the Steering Committee start time would be 5 p.m. These changes will be effective
with the July 1, 1998 Special Board Meeting.
5. Review Agenda Items Scheduled to Be Presented to Committees in April
CLOSED SESSION
There was no closed session.
OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY
There was no other business discussed.
MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT
MEETING
The pension issue will be pulled from the Board agenda and be returned to FAHR for further
discussion.
\.r
Minutes of the Steering Committee
Page 5
March 25, 1998
CONSIDERATION OF UPCOMING MEETINGS
Director McGuigan offered to reschedule the July 1 OMTS meeting to July 8 to avoid any conflicts
with the Special Board Meeting. The Chairmen of the PDC and FAHR Committees will be asked
about postponing their regular July meeting dales one week as well.
The next Steering Committee meeting is scheduled for April 22, 1998 at 5:30 p.m.
ADJOURNMENT
The Chair declared the meeting adjourned at 7:06 p.m.
ubmitied by:
e n Tappan, Sleirind Committee Secretary
CiLBe^»lS1EEflWG fAMM�MnNm.Ox
ti
r
STEERING COMMITTEE Meeting Doe TOR.MS.
DZ3/99
AGENDA REPORT I Item Nu 1 Item Number
County Sanitation Districts of Orange County, California
FROM: Nancy J. Wheatley, Director of Technical Services
SUBJECT: Request for Fee Refund from the City of Garden Grove
GENERAL MANAGER'S RECOMMENDATION
The General Manager recommends that the Steering Committee direct staff as to
policy on this issue.
SUMMARY
Earlier this month, Gary Streed provided a basic framework for our proposed new
fee structure to the FAHR Committee. In that presentation, he noted some
problems with the implementation of the existing ordinances for sewer users who
discharge domestic strength sewage in higher than average volumes. These
sewer users are sometimes issued Class III permits by Source Control to recover
additional sewer fees because of these higher than average volumes. Class III
permits are issued only to recover additional sewer fees, not because the facility
must be regulated under the Industrial Pretreatment Program. The City of
Garden Grove has requested a refund of fees paid under Class III permits for
trailer parks owned by the City which fall into the Class III category of sewer user.
The amount of the fees for which a refund is requested is approximately $24,000.
See attached letter of 2/19/98.
PROJECT/CONTRACT COST SUMMARY
BUDGETIMPACT
Refund of fees would result in a reduction in revenues of$24,000.
❑ This item has been budgeted. (Line item: )
❑ This item has been budgeted, but there are insufficient funds.
❑ This item has not been budgeted.
® Not applicable (information item)
H I"dtaUN51N5C\GG AIT ROm
R-..,a tor.,A, Page 1
ADDITIONAL INFORMATION
The basic facts are that the City of Garden Grove Redevelopment Authority
purchased two existing mobile home parks in 1993 and has been operating them
as low-income housing. These parks had Class III permits and were paying
sewer use fees in addition to the amounts paid on the tax bill. The Districts did
not learn of the transfers, until 1996, when the information provided by the City
lead to the conclusion that one of the parks had been transferred and that the
property was now used for municipal purposes. Based on that information, the
Class III permit for that property was cancelled because it was the practice that
municipal properties were not issued Class III permits. The cancellation of one
permit meant that one of the two mobile home parks was paying sewer charges
through a Class III permit and one was not.
In October 1997, the management company for the mobile home parks
contacted the Districts to note that two properties had been purchased by the
City and asked that the sewer fees, charged under the Class III permit, be
refunded. The City's request was based on a Districts ordinance that appeared
to exempt municipal activities from at least a portion of the sewer fees, unless the
activity was "proprietary." The ordinance is old and, in fact, no longer relevant
because of earlier changes in the fee structure. Nevertheless, the practice of not
issuing Class III permits, and therefore additional charges, to municipal facilities
has continued. When Districts' staff look for high water users to be permitted
under Class III, municipal facilities are simply not included in facilities proposed
to be permitted.
There would appear to be three options for responding to Garden Grove's
request, none of which is particularly satisfactory. These options and the pros
and cons are discussed below:
1. Reject the request for refunds: This alternative would leave one of the two
Garden Grove mobile home parks subject to Class III charges until a new rate
structure is implemented. The major problem with this alternative is that it
leaves an inconsistent treatment for two similar properties with the same
owner. On the other hand, as Mr. Streed noted in his report to the FAHR
Committee, charges under the Class III permit program and for municipal
facilities have not been uniformly implemented. Therefore, no specific
precedent can be applied here.
2. Cancel the remaining Class III permit: This alternative would cancel the
existing Class III permit for the second mobile home park, but not offer
Garden Grove the return of fees already paid. On the positive side, it
equalizes the treatment for the two facilities on a going forward basis.
However, there is no clear logic to support this action. If the District
determines that the parks should not be permitted as a Class III facilities, why
was it appropriate to recover fees from one facility but not the other?
Hk" =YsU51P CIGG_Arr—Zz
a ..,,, 1.7 Page 2
3. Cancel the remaining Class III permit and refund the Class III fees paid since
the property was purchased by Garden Grove: This is what Garden Grove is
requesting. The problem is that there is no exemption for municipal facilities,
and It is clear that the mobile home parks are not paying their"fair share" of
Districts' costs without the Class III charges. See Counsel memo of 3/13/98.
The response to Garden Grove's request is a matter of policy. Staff has no
recommendation as to which alternative should be selected. Staff will be
available to discuss these options further at the Steering Committee meeting.
ALTERNATIVES
The alternatives are presented in the additional information.
CEQA FINDINGS: NA
ATTACHMENTS: City of Garden Grove letter of 2/19/98
Counsel letter of3/13/98
NJW:au
Hnm aysv 1=Ca Ar 2d�
R. I., Page 3
CITY rv= GARDEN GROVL.., CALIFORNIA �.
1122h&CIA PARKWAY, P.O. BOX 0070. GARDEN GROVE,CALIFORNIA 92642 1
"'o._a••" .. '. Air`
GARDEN GROVE` . . 't i (714) 741-5121
Z7
February 19, 1998 -J-l�s2t-
File Original
Mr.Jerry Evangelista,P.E.
Senior Engineer, Source Control Division
County Sanitation Districts of Orange County,California
P.O. Box 8127 i
Fountain Valley,California 92728-8127
Re: Termination of Class/I/Permit Nos. 2-3-115 and 3-3-120;Baleia and Emerald Isle
Mobilebonte Parks, Garden Grove
Dear Mr. Evangelista:
I
The City of Garden Grove and the Garden Grove Housing Authority have received a copy of
your letter of October 28, 1997 letter to Julie R. McKinlay of Municipal Management Services, '
notifying her of the Districts' determination to terminate the existing Class III Permit
No. 2-3-125 for the Emerald Isle Mobilehome Park, to issue new Class III permits for both the
Emerald Isle and Bahia Mobilehome Parks, and declining her request for a refund of previously
remitted sewer use charges. We have also received a copy of your December 17, 1997 "First
Late Notice"to Ms. McKinlay.
We believe that the Districts' determination on this matter is erroneous, and ask you to
reconsider that determination.
In your October 28 letter, you stated that the parks "were bought for proprietary purposes, i.e.,
not for a municipal function," and were therefore not entitled to the local government agency j
exemption from charges under Section 308A of the Districts' ordinance. You also stated that the
Districts initially determined that the parks were exempt based on its belief that the "City of
Garden Grove had bought the property for eventual redevelopment for municipal purposes," but
changed its determination based on its later understanding that the parks were bought "to
maintain the supply of mobilehomes and to maintain, increase and improve the supply of low
and moderate income housing in the City of Garden Grove."
Section 308A provides that "no sewer use charges ... shall be payable for the discharge of
wastewater from property within the District territorial boundaries owned or leased by local
public agencies, provided, that such property is not used for proprietary purposes." Because the
.. Permit Nos.2-3-125 and 3-3-120
February 19, 1998
Page 2
Bahia and Emerald Isle mobilehome parks are owned by the Garden Grove Housing Authority
and leased to the City of Garden Grove, the first portion of that test is clearly satisfied. The only
question is whether the parks are used for"proprietary purposes" and therefore not entitled to the
exemption.
Unfortunately, the Districts' ordinance itself does not appear to define what it means by the term
"proprietary." The two most common definitions of that to , according to Webster's
Dictionary, is something "used, made or marketed one_havi the exclusive legal right;' or
"privately owned and managed and run as profit-making or antzation." Neither of those
definitions describes the ownership and operation o eti a uB-T'wand Emerald Isle mobilehome
parks.
Obviously the City and Housing Authority do not have an exclusive right to own and operate
mobilehome parks in the City; there are numerous other privately owned parks in Garden Grove;
nor are the parks"managed and run as a profit-making organization." Both parks lose significant
amounts of money each year, and are not expected to ever make a profit. Even if the Section
308A exemption is granted from the Districts' sewer use fee, the Bahia and Emerald Isle
mobilehome parks will still operate at a loss. ..
Ownership and operation of low income, using developments is significantly different from
other municipal enterprises which might be described as "proprietary," such as utilities, airports
and harbors, which often generate profits for the local govermment, as well as providing an
exclusive service not available from the private sector. Unlike those other types of operations,
the local government must subsidize an affordable housing development to make that housing
affordable to the lower income tenants.
Your October 28 letter, in which you declare that maintaining the supply of mobilehomes and
maintaining, increasing and improving the City's supply of low and moderate income housing is
not a"municipal" function, demonstrates a lack of understanding of the role of local government
in providing low and moderate income housing. The California Legislature has declared, in
adopting the housing authority law, that there is a critical shortage of safe or sanitary housing
available at rents affordable to low income persons, that such persons are forced to occupy
overcrowded and congested housing, causing health, crime and other public problems, and that
providing safe and sanitary housing for persons of low income is a public use and purpose for
which public money may be spent (Health and Safety Code Section 34201). The goal of local
government is not to make money on the housing, but to provide affordable housing to lower
income persons. This is no less of a"municipal" function than buying the property for eventual
redevelopment,which you stated was a"municipal" function subject to the fee exemption.
Permit Nos. 2-3-125 and 3-3-120
February 19, 1998
Page 3
Accordingly, the ownership and operation of the Bahia and Emerald isle mobilehome parks by
the City of Garden Grove and the Garden Grove Housing Authority clearly entitles the parks to
the exemption from sewer use fees under Section 308A of the Districts' ordinance. Please
reconsider your determination that the exemption does not apply. If you require any further
information in order to make your determination, please let us know and we will be happy to
assistyou.
Sincerely,
Ma�ew Fertal
tth
4
Community Development Director
c: Christopher Corbin
Julie R. McKinlay
Jon E. Goetz, Esq.
Mark Kawamoto
(y:ce:unamn.ln)
,
WOODRUFF,SPRADLIN &SMART
Y
nwwr cwvu„o,
MEMORANDUM
TO: Mr. Gary G. Streed
Director of Finance
FROM: General Counsel
DATE: March 13, 1998
RE: Garden Grove Sewer Use Fees—
Operation of Mobile Home Parks
I have received and reviewed a copy of the Memorandum from Nancy J. Wheatley,
Director of Technical Services, dated March 5, 1998, outlining the history of a request for
reimbursement of sewer use fees paid by the City for two mobile home parks which it
presently owns and operates. At the outset, I must indicate that it is true that this Firm
represents the City of Garden Grove in the capacity of City Attorney, and therefore, a
potential conflict of interest would exist if we were asked to render an opinion or advice as
to how to resolve this apparent dispute.
I do bring to your attention, however, without the necessity of providing such advice
or counsel, that the Technical Services Department's Staff has failed to recognize the
appropriate Ordinances presently in effect that govern this situation. There has been
considerable emphasis on the District's Wastewater Discharge Regulations Ordinance
Section 308(A), which does provide that no sewer use charges are payable for properties
owned or leased by local public agencies. The focus of attention has been almost
exclusively devoted as to whether the use is a 'proprietary' use. I do not believe that that
issue needs to be decided, or even addressed, because the remaining portions of the
Ordinance are controlling. Section 308(C) provides:
"This exemption applies only in those Districts which do not have a
sanitary sewer service charge established in accordance with Section
703.°
Section 703 of the Industrial Waste Discharge Regulations Ordinance provides:
"Every parcel of real property located within the District which is
improved with structures which are designed for residential,
commercial or industrial use and connected to the District's system,
may be subject to a sanitary sewer service charge in an amount
adopted by the Board of Directors by separate Ordinance.'
1
Mr. Gary G. Streed
Director of Finance
March 13, 1998
Page 2
Your attention is drawn to Ordinance No. 223 of District No. 2, and Ordinance No.
326 of District No. 3, which are identical in their provisions. Section 4 of both of those
Ordinances provides:
"Section 4: Exceptions: The provisions of this Ordinance shall apply
to all owners of properties in the District, and no exception shall be
provided for properties otherwise deemed exempt from payment of
taxes or assessments by provisions of the State Constitution or
statute, including properties owned by other public agencies or tax-
exempt organizations, except as expressly provided in Section 5
hereof.'
Section 5 is not applicable to the situation at hand, and so, in summary, all of the
Cities, County, Special Districts, and School Districts within the District's service area, are
required to pay all sewer use charges, both those collected on the property tax roll, and
those billed directly by virtue of the issuance of industrial discharge permits. The District
need not decide, or have anyone else decide, as to whether the City of Garden Grove's
operation of mobile home parks is proprietary.
/4 !!!07
OMAS L. WOODRUFF
GENERAL COUNSEL
nw:q
cc: Mr. D.F. McIntyre
Ms. N.J. Wheatley
STEERING COMMITTEE Wed�g Dare To aa.
4/22/N
AGENDA REPORT oemrvombr. IemNumDe
3.
County Sanitation Districts of Orange County, California
FROM: Donald F. McIntyre, General Manager
Originator: Jean Tappan, Executive Assistant
SUBJECT: May Agenda Items for Consideration by Working Committees
GENERAL MANAGER'S RECOMMENDATION
Review with staff the tentative agenda items scheduled for review by the Working
Committees in May.
SUMMARY
Staff routinely prepares a list of items for presentation 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 May:
OMTS Committee: 1. Results of Hydrogen Peroxide and Digester Gas Automation
Study
2. Report on Parametric Monitoring for Central Generation
3. Chemical Usage Quarterly Report
PDC Committee: 1. Ratify Change Order No. 13 to Secondary Treatment
Improvements at Plant No. 1, Job No. P1-36-2
2. Ratify Change Order No. 3 and approve Close Out
Agreement for Facility Modifications and Safety Upgrades at
Plants Nos. 1 and 2, Jobs Nos. PlAD-2 and P2417-2
3. Approve Addendum No. 4 to PSA and revised budget for
Chemical Facilities, Job No. P1-46-2
4. Award PSA for High Pressure Compressed Air System at
Plant No. 2, Job No. 132-61
5. Award PSA for Surveying Services
6. Award PSA for Soils and Concrete Testing Services
7. Award multiple PSAs for Facilities Engineering Consultant
Agreements
FAHR Committee: 1. Adoption of Revised Sewer Service Rate Structure
2. Quarterly Investment Program Report
3. Third-Quarter Financial and Operational Report
4. Adoption of"Reserves" Funding Policy
5. Revisions to Delegation of Authority
N MV-m W�KIEEflHG CCMMILlEEl4TARfM]IDB^uY' r M
Page 1
PROJECT/CONTRACT COST SUMMARY
N/A
BUDGETIMPACT
® - Not applicable (information item)
ADDITIONAL INFORMATION
N/A
ALTERNATIVES
N/A
CEQA FINDINGS
Not a project.
ATTACHMENTS
N/A
jt
N try Jp+yeMaV^IEEflIHG COMMITiEFpBApMTgpmyrCal
n....a. ++� Page 2
County Sanitation Districts
of Orange County,California
1 P.O.Box 8127 • 10844 Ellis Avenu.
Fountain Valley,CA 92728-8127
Telephone: (714)962-2411
DRAFT
MINUTES OF THE AD HOC COMMITTEE
RE STRATEGIC PLAN
SEE
Thursday, March 19, 1998 at 5:30 p.m.
A meeting of the Ad Hoc Committee re Strategic Plan of the County Sanitation Districts Nos. 1, 2, 3, 5,
6, 7, 11, 13 and 14 of Orange County, California was held on Thursday, March 19, 1998, at 5:30 p.m.,
at the Districts'Administrative Office.
ROLL CALL
The roll was called and a quorum declared present, as follows:
OTHERS PRESENT:
PRESENT: Kellene Burn-Lucht,CDM
George Brown,Comm.Chair and Chair, Toby Weissert,Carollo Engineers
FAHR Thomas M. Dawes,Consultant
John Collins,Joint Chair Bruce Broadwater, Director/Mayor of Garden
Peer A.Swan,Vice Joint Chair Grove
Burnie Dunlap,Chair, PDC Mark Leyes,Director,Garden Grove
Shirley Dettloff,Chair pro tem,Dist. 11 Mark Asturias, City of Garden Grove
Pat McGuigan,Chair,OMITS George Tindall, City of Garden Grove
Will Steiner,Supervisor/Director Les Jones,City of Huntington Beach
Adam Pobanski
ABSENT: STAFF PRESENT:
Jan Debay,Chair, District 5 Don McIntyre,General Manager
Blake Anderson,Assistant General
Manager
Gary Streed,Director of Finance
Michelle Tuchman, Director of
Communications
Jim Herberg, Planning Engineer
Nancy Wheatley, Director of Technical
Services
Jean Tappan,Committee Secretary
APPOINTMENT OF CHAIR PRO TEM. IF NECESSARY
No appointment was necessary.
PUBLIC COMMENTS
There were no comments by any member of the public.
Minutes of the Ad Hoc Co nittee re
the Strategic Plan
Page 2
March 19, 1998 �
RECEIVE FILE AND APPROVE MINUTES OF PREVIOUS MEETING
The minutes of the February 25, 1998 Ad Hoc Committee meeting were approved as drafted.
REPORT OF THE COMMITTEE CHAIR
Chairman George Brown did not make a report.
REPORT OF THE GENERAL MANAGER
General Manager Don McIntyre stated that two items would be discussed at this meeting;the Districts
response to the letter from Garden Grove and the schedule for the remaining tasks in the Strategic
Plan. The Directors and staff representing Garden Grove, Mayor Bruce Broadwater, Mark Leyes,
George Tindall and Mark Asturias, were invited to the meeting to discuss the issues of concern.
DISCUSSION ITEMS (Nos. 1-2)
1. Strategic Plan and Rate Structure changes: concerns raised by City of Garden Grove in their
February 24, 1998 letter (copy attached)
Mr. McIntyre thanked City Manager George Tindall for sending a draft copy of the letter before it
was mailed, as that gave the Districts an opportunity to prepare a response and receive
feedback. The response was prepared to address the issues of concern section by section in
the same order presented in the letter.
After reviewing the Districts'response, Director Broadwater questioned why an economic study
on how rate structure changes will affect individual industries could not be done. He felt that the
members of the Boards should have the right to see if some of these industries would be
severely adversely impacted.
Mr. Tindall then expressed Garden Grove's concerns, including public outreach and having
more commercial and industrial representation on advisory committees. The proposed changes
to the rate structure will have a major impact on the business community, especially restaurants
and car washes. He mentioned taking a market-base approach to source reduction, and asked
that the Strategic Plan address the concept of reducing the amount of water to the sewer lines
through subsidized pre-treatment processes. Other utilities have assisted businesses in this
manner. He asked that the EIR consider the issue of impacts on business retention when the
analysis of the Strategic Plan alternatives and the rate structure is finalized.
Mr. Tindall mentioned that since the letter was written, a lot has happened and some of the
points are no longer of concern.
Mr. Tindall suggested that the Districts form a standing technical advisory committee, similar to
the advisory committees for transportation, good control, and other regional bodies, and include
major stakeholders, water producers, pumpers and users.
Mr. Tindall also suggested hiring an outside consultant to see how everything within the
Strategic Plan fits together and how it impacts the economics of the Orange County business
community. While existing rates are low, they are only a good benchmark. The proposed
increases may not stand up in court if challenged because an independent analysis has not
v Minutes of the Ad Hoc Committee re
the Strategic Plan
Page 3
March 19, 1998
increases may not stand up in court if challenged because an independent analysis has not
been done that indicates the need for the increases.
Ad Hoc and staff members discussed some of the ways the Districts' Source Control division
has assisted business and industry to reduce wastewater strength and flow. However,
treatment facilities must be designed to handle peak flow through the treatment plants and out
the outfall. This is more important than what comes down the pipe day-by-day.
Director Broadwater said that some of the rate increases are as much as 700% and this will be
a major impact on business. He asked that businesses be given notice before this increase is
implemented. He recommended again that an economic study be done before implementing
the increases.
Director Leyes indicated that the RAC had considered the timing and planning for making the
change. He also stated that restaurants usually operate with a very small profit margin, and the
increase in fees will be a major impact.
Chairman Brown said that these suggestions would be considered.
Director Swan pointed out that the costs of delaying implementation could be as high as
$500,000 per month. This would be on top of the costs of a study.
Mr. Tindall stated that the City was not asking for a macro study on business in Orange County;
rather accumulating as much information as possible so that the Board has enough information
to make an informed decision on the proposed rate structure.
Director Leyes suggested that the Strategic Plan be more than a facilities plan; it should
address low-tech things that could take stress of the system.
Action: Chairman Brown asked that the City of Garden Grove further review the Districts'
response and provide a letter summarizing what additional items they would like the Districts to
consider, which were not addressed in the response.
Mr. McIntyre stated that there is a city managers meeting at the Districts next week and he
would be happy to discuss the feasibility of a technical advisory committee with them.
2. Strategic Plan Schedule and Upcoming Meetings
The revised schedule was discussed. Changes are necessary because of the extension of
CDM's contract to include review of the impacts of the new permit requirement on operations.
The issue of conflicts with meetings of other agencies/entities will be mediated by compiling a
master calendar of events throughout the county.
Action: Hold the next Directors workshop on the Strategic Plan on Saturday, May 9. Include
discussion of date for budget workshop at the next Steering Committee meeting. The General
Manager will make a recommendation at that meeting.
Gary Streed mentioned that last year was the first year the Saturday, one-half day budget
workshop was held, and there were very few questions about the financial plan itself. Since the
budget is presented to the working committees, all directors have the opportunity to discuss it
prior to approving it at the June meeting.
� u 4
Minutes of the Ad Hoc Committee re °
the Strategic Plan
Page 4
March 19, 1998
CLOSED SESSION
There was no dosed session.
OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY
There was no other business discussed.
MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT
MEETING
There were none.
CONSIDERATION OF UPCOMING MEETINGS
The next Ad Hoc Committee meeting is tentatively scheduled for June 1998; the exact date and time
to be determined.
ADJOURNMENT
The Chair declared the meeting adjourned at 6:40 p.m.
Submitted by:
J Tappan, Ad Ho Co tmittee Secretary
/ CM 01` GARDEN GROVE, CALIFORNIA
11222 ACACIA PARKWAY, P.O. BOX 7070. GARDEN GROVE, CALIFORNIA 929A2
e,
(714) 741-5100
February 24. 1998
Mr.John Collins
City of Fountain Valley
10200 Slater Avenue —
Fountain Valley, CA 9270B • --
Dear Mr. Collins:
I am writing to you as a fellow board member of the County Sanitation Districts of Orange
Courtly(CSDOC)to express the City of Garden Grove's concerns about CSDOCs proposed
Strategic Plan for Capital Improvements and related rate structure. While we, as CSDOC, have
Liken important steps toward the continued provision of efficient and cost effective services to
our constituents, the City of Garden Grove has a number of concerns about the current process for reviewing the plans and rates.
As you are aware, CSDOC formed a Planning Advisory Committee(PAC) and a Rate Advisory
Committee(RAC)to review and make recommendations on the proposed Strategic Plan and
rates. We are concerned that these committees have pdmadly focused on narrow issues, and
have not focused on the overall impacts that their recommendations will have on the county's
residents and businesses. The rates and capital Improvements are inextricably fslked, and we
believe that there needs to be a thorough review of the financial, service and technical
assumptions underlying these Issues before the Strategic Plan is dratted. This is even more
evident in light of our recent actions to delay the PAC's efforts because of the draft NPDES
permit recently Issued by EPA.
Our specific concerns are as follows:
Review of Design Criteria and Assumptions—The PAC is charged with reviewing collection
system deficiencies, improvement altemaives and discharge alternatives, but has not bean
provided with a dear explanation of the design criteria and assumptions in order to be able to
assess whether proposed facility standards are being set in a manner consistent with -
anticipated service needs. The provisions of the draft NPDES permit may significantly alter the
design assumptions and affect the alternatives and more time is needed to assess the baseline
assumptions which may be impacted by the NPDES permit CSDOC staff has been working
hard to educate the Board on these complex issues. We, as a Board, need to to focus on these
issues and involve our own technical staffs for Input
Mc John Collins '
February 24, 1998 \ i
Page 2
Range of Levels of Capital Facilities Imorovements—The PAC is reviewing design alternatives
to improve CSDOC capital facilities, but it is unclear whether these alternatives are designed to
meet minimum requirements, ultimately desired facilities, or something in between. And the
NPOES permit also may affect our capital facilities plan. The PAC should also be provided with
analyses of how each alternative may impact future dovelopment within member agency auras,
as well as specific information on the design criteria underlying the design alternatives. _
Financing Plans—While the RAC has completed its recommendations on the rate sfrvdure, it Is
unclear what the impacts on the community will be since the capital faddy needs are still
undefined. The PAC or RAC needs to include the issue of how capital improvement areto-be---
financed in its recommendations, and haw the financing options will affect the community and
member agencies. - ..
Financial ImMc s—The PAGRAC process does not provide for a comprehensive overview of
CSDOC's plans,and not all agencies poterdially affected by the plan are included on the PAC.
We believe that all affected local agencies should be consulted regarding captal facility Cost to
that agency before a final plan is considered by CSOOC. In addition, we believe that there
needs to be much greater imrolvement of other stakeholders. especially the business
community, There needs to be a much broader representation of business than exist in the
current process. It might be beneficial to explore the possibility of involving local academics,
such as those At the graduate schools of administration at the University of California at Irvine
and Chapman University, to provide an independent analysis of the impact of the proposed
plan on residents, business and government entities.
Business Retention and Attraction Incentives-AI] of the currently identified alternatives
reviewed by the PAC will have a significant adverse impact on the commercial and Industrial
communities in the county. We believe that an incentive program needs to be included in the
Strategic Plan for businesses that reduce system demand below projections. Market analyses
need to be conducted regarding what sorts of businesses could be attracted that will continue to
Improve the economic vitality of the county, without straining the sanitary infrastructure, and
how CSDOC and member agendas can work cooperatively to attract these types of
businesses.
Fsvironmental Impact Report—CSDOC has already initiated the Environmental Impact Report
(EIR)process, but the alternatives are not yet settled especially in light of the draft NPOES
permit requirement and the impact it may have to our baseline assumptions. This may lead to
the EIR not adequately addressing the alternatives that are finaAy included in the Strategic
Plan. We believe that CSDOC should delay the EIR until the alternatives are selected and
developed so that they can be property incorporated into the E R.
In short,we believe that the current process has seated too much separation between
economics and design. While the rate structure has been recommended,it is impossible to
assess the impacts of that structure, since the facility needs have not yet been resolved. On
the other hand, facility needs and alternatives are being considered without an understanding of
Mr. John Collins
February 24, 1998
Page 3
the overall impact that they will have on the community under the proposed rate structure. We
believe that CSDOC should not act to adopt either the rate structure or facility plans until all
necessary data has been collected, analyzed, and discussed in a comprehensive manner.
Both I and my colleague and fellow board member, Mark I.eyes, believe that the entire process
needs to be slowed down. The Board needs to sit down with staff and disams the design
criteria that are to be used to develop the Flan. We also need fo 9et broader involvement and
input from the business community. In addition,the EIR needs to be delayed umll the plan is
firm enough to ensure that a0 necessary elements ate analyzed. Finally,we betleveShdt the
needs to be an Economlc Impact Report(an independent ftnandat analysts) of the impacts of .
the proposed plan and rates before any action is taken on either. This Economic Impact Report_ .-
must tell us haw our efforts will Impact the business community and residents we serve It must
show us how out rates might ad as a disincentive to attracting new business to the county.
We hope that you volt join us in eating for a revised process, based on a oomprehensrve
understanding of the way in which the financial and operational pieces fit together, and taking
Into account the likely Impacts that the ultimate plan and rate structure w ll have on Orange
County's residents, businesses and local agencies.
Sincerely.
Bruce A.Broadwater
Mayor
c Don McIntyre, General Manager
STEERING/AD HOC COMMITTEE Meeting Date To]t.Sds.
4/22198
AGENDA REPORT IremNumber I rremNumxr
County Sanitation Districts of Orange County,California
FROM: Donald F. McIntyre, General Manager
SUBJECT: Consider Preparation of an Economic Impact Study of the Proposed Rate
Structure
GENERAL MANAGER'S RECOMMENDATION
Provide staff direction.
SUMMARY
At the March 19, 1998 meeting of the Ad Hoc Committee, the City of Garden Grove
representatives were asked to present their thoughts on issues that should be included
in an economic modeling study. The attached April 6, 1998 letter outlines their
suggestions.
PROJECT/CONTRACT COST SUMMARY
Can not be determined at this time.
BUDGETIMPACT
NA
ADDITIONAL INFORMATION
None
ALTERNATIVES
NA
CEQA FINDINGS
NA
ATTACHMENTS
1. April 6, 1998 letter from City of Garden Grove
it
H%x Na genda\GIEERING LOMMITLEElB9UPRW4] vdhw aO Gx
R—e 1. Page 2
CI�V 4� GQROEIV GROVE, CALIF
11222 ACACIA PARKWAY, P.O. BOX 3070. GARDEN GROVE, CALIFORNIAORN IA
6,12
(714) 741-5100
GARDEN GROVE
April 6, 1998
Mr. Don McIntyre, General Manager
County Sanitation Districts of Orange County
Administration Building
10844 Ellis Avenue
Fountain Valley,CA 92728
RE: OUR MEETING OF MARCH 19, 1998
Dear Mr. McIntyre:
I appreciate the opportunity to meet with you and the Strategic Plan Ad Hoc Committee to
discuss Garden Grove's concerns regarding the Strategic Plan for Capital Improvements and
CSDOC's proposed rate structure. As I said in the meeting, Garden Grove applauds the efforts
of the Sanitation District; the work of the Planning Advisory Committee and the Rate Advisory
Committee have been outstanding.
The Ad Hoc Committee asked that we offer our thoughts on the issues that could be addressed in
an economic impact analysis of the proposed rate structure. We believe an independent
economic modeling study would include an analysis that identifies,at a minimum, the following
points:
• What is the elasticity of demand and how does the proposed rate structure impact it?
• How would development be inhibited by the rate structure?
• What industries would achieve a breakpoint in costs and where would this occur?
• Which industries would be prompted to relocate as a result of the proposed rates and would
this impact the revenues of the Sanitation District, creating alternative Capital Facility needs,
therefore,changing the rate structure?
• Can an incentive structure be incorporated into the rates which would assist impacted
businesses yet not be detrimental to the Sanitation District?
Of course,you may wish to include other areas in the study which would assist your efforts. For
instance, this study could permit you to develop the nexus for the rate structure and review those
other issues necessary to complete your economic analysis.
Y
April 6, 1998
Page 2
I-appreciate your willingness to approach the various cities and the county to assemble a
technical advisory committee comprised from the communities served by the Sanitation District.
When you convene this committee you may be assured that Garden Grove will be there.
I was advised that your office sent a notice to the City announcing your establishment of a
Technical Assistance Center to assist businesses and industries. This is a very important step in
working with the business community to help them improve operations and streamline doing
business in Orange County. This high level of customer service by the Sanitation District will
certainly help improve the image of Orange County as a good place to do business.
Thank you for the opportunity to meet with the Strategic Plan Ad Hoc Committee. If you need
any additional information or want to discuss our comments further, please call me at the above
number, Les Jones at 741-5375 or Mark Asturias at 741-5123.
Sincerely,
i g dal
City Waa
GLT:MA:mi
c: Mayor Bruce Broadwater
Mayor pro tem Mark Leyes
Les Jones
Mark Asturias
(p/emnde /maWmiWV=dis17)
} 99
F FOURTH QUARTER
APR APR MAy DUNE
MAR
RATE STRUCTURE
;(I Cotmtdlaa ..................
....................e.................._.. .... -...i. ..
FAI tad Hoe/ L
PEAK FLOW Ail,
ss
MANAGEMENT/
LEVEL OF TREATMENT'.
...........................................i...................... ......................:.:
.....................o...................o......................
.:.................... .
Business
umcneon
B�
GWR PROJECT
..................._......................2...................... .....................a.i ..i...................
pub&
Hearing
Cer y
CEOA(EIR) Final EIR
ACTIVITIES Approval i
TaeAction
........................_.................:................._.. ......................i on S.P.
:.r................... _................_.c......................
MISCELLANEOUS
WORKSHOPS
LEGEND
S.R-SNamgie Plan
CEQA-California Envimnmenlal Qually Act
EIR-Environmental Impact Report
EIS-Environmental Impaet Slatemem
OCR-Orange Count'Reclamad-Project
PAC-Planning Advisory Committee
RAC-Ram AdvisotY Commldee
FAHR-Finance,Administration and Human Resources Cow.
PDC-Planning,Design and Cona cuan Commilma
County Sanitavon
STRA
1998 QUARTERLY S,
FOURTH QUARTER FIRST QUARTER
APR MAY JUNE JULY AUG SEPT
FAHR
RATE STRUCTURE Fee
Sbwaua Structure
hnpmm Implant
istReaft Reading
Jun.24
........................................ ..................... ...................... ................... .. Hoc ......................
Boeld Jun."'hou PAC2#1
Ad Hoo/A
Finalize
It PAC Steering
PEAK FLOW .32 Workshop Recommend-
6 Committee
39
MANAGEMENT/ Committee axons
LEVEL OF TREATMENT:
Jun.24
Ad Hoc Board
m Committee Workshop
EIRIEIS to S.P.Recomarl
.................................. ..................... ... .... Public..... .. ......... ....................
s Jun.I
Business a Luncheon GWR-Public
OCSD Workshop for
Apr.30 Draft El IS
GWR PROJECT
Jun.7
GWR-PublicIOU"
Heenngr
Draft EIR/EIS out
Jun.27
................................................................ .......................................— ..... .................
Aides
LunW
Jun.24
CEQA(EIR)
ACTIVITIES
.... .......................... .................... ... ................. League a/
....................... .................. ....................... .................... ...................
City P.W.MISCELLANEOUS CltlesWorkshop
WORKSHOPS May 14 Coop. Projects
OCSD
L,FGEND
S.P.-Strategic Plan
CEQA-CallforniaEnvirommental Quality Act
SIR-Environmental Impact Report
EIS-Environmental Impact Statement
OCR-Orange County Reclamation Project
PAC-Planning Advisory Committee
RAC-Raw Advisory Committee
FAHR-Finance,Administration and Human Resources Committee
PDC-Planning.Design and Construction Committed
J'stncts of Orange County
'EGIC PLAN i1
HEDULE OF EVENTS 1999
SECOND QUARTER THIRD QUARTER FOURTH QUARTER
OCT NOV DEC JAN FEB MAR APR MAY JUNE
Ad Holx
....................>..................... Sxdns
CmmMro ti[.......................
.................. _......_........ ••'�Camdlfae ................;'
......................
Mdmhop 2 PAC2 Wadmhop 3
PDC
Commrenb BoWAuM.
Cmepletlon Caalatlon
dCEOA of Draft EIR
................................................................. ......................i......................................... ......................e..........................................
DrODYm:
Ce"Final
EIR
brGWR i
....................................... ....................i......................................... .. Public ..i....................i....................
.
•svmmm F,�.eam.ml l wM9
ouYyAa lrJ:4V Car*
Adminhdratlon
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Fin[EIR
CEW Special Approval
M Hoe Board Draft EIR Meeting
Commiftee Vlforkahap : to Public Full HeaMq
of Draft EIR TaloArBon
on S.P. p '
.....................c......................
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