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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 as�w�+�'.m+�cawwrtEemNanwno-aea avaerwNr.as _ u � In the bets�ote the Secretai rr N NCort Sarjte'o 'stri 5{ County Sanitation Districts 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 D ag EIR 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...................... a .nMSON59L�