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HomeMy WebLinkAbout1999-10 DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, October 27, 1999 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, October 27, 1999 at 5 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: Directors Present: STAFF PRESENT: Jan Debay, Chair of the Board Don McIntyre, General Manager Peer Swan, Vice Chair Blake Anderson, Asst. General Manager Pat McGuigan, Chairman, OMTS Committee Jean Tappan, Committee Secretary Norm Eckenrode, Chairman, PDC Committee Bob Ghirelli, Director of Technical Services Tom Sallarelli, Chairman, FAHR Committee David Ludwin, Director of Engineering Jim Silva, County Supervisor Mike Peterman, Director of Human Resources John Collins, Past Chair of the Board Gary Streed, Director of Finance Michelle Tuchman, Director of Communications Directors Absent: Mike Moore, ECM Manager None Layne Baroldi, Environmental Regulatory Specialist OTHERS PRESENT: Thomas L. Woodruff, General Counsel Tom Nixon, Counsel Don Hughes Ryal Wheeler FILED Fred Cardenas IN THE OFFICE OF TILE SECRETARY Dave Schlesinger ORANGE COUNTY SANITATION DISTRICT Augie Caires Dan McMillan NOV 17 1999 Jan Goldby Jim Howell Ed winamer Doug Isbell John Lippitt (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no comments by any member of the public. Minutes of the Steering Committee Page 2 October 27, 1999 (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the September 22, 1999 Combined Steering and Ad Hoc Committees meeting were approved as drafted. (5) REPORT OF THE COMMITTEE CHAIR Chair Debay welcomed the members of the San Diego Wastewater Management District Advisory Committee, who spent the day with staff and Directors Eckenrode and Swan to discuss our administrative and management policies. Several Directors attended the October 20 Peter Sandman seminar on public outrage, and Director Swan recommended that Mr. Sandman return to address the League of Cities as well as employees of IRWD and other agencies. He indicated that IRWD would help pay the costs. Chair Debay also mentioned that there has been some talk about sewering dry weather flow from the new development planned near Crystal Cove. So far no one has contacted the District. (6) REPORT OF THE GENERAL MANAGER A. The General Manager reported that the November 3 OMTS Committee meeting has been cancelled. And because of a conflict with a League of Cities meeting on November 4, the PDC Committee will meet at 5 p.m. at Edison Field. Next month's Steering Committee agenda will have several major policy issues to discuss, including succession planning and rate consolidation. Several changes in executive management personnel (Mike Peterman's early departure in December rather than January, and Ed Hodges' departure on November 1) make a discussion of the structure of the organization essential as well. Director Silva said that he has had several meetings regarding the problems in Huntington Beach and that the General Manager was in attendance representing the Sanitation District. Director Silva thanked Mr. McIntyre for his positive approach in working with the cities and agencies on this difficult issue. B. Report of the Assistant Manager Bob Ghirelli, Director of Technical Services, reported on the Huntington Beach Closure and Urban Flow Diversion activities. Staff is completing a long list of items and preparing the final report for presentation to the Directors in November. The county and cities have formed a group to look at upstream sources. The Huntington Beach special discharge permit is on tonight's Board agenda. Researchers from UCI are investigating the channel and marshes. NWRI has provided a matching grant of $75,000 for these studies. A panel of experts is being formed to evaluation the event and provide recommendations should it occur again. The outfall dye test was completed and there were no leaks. Questions have arisen, however, on background levels of the ocean and additional studies may be recommended. Minutes of the Steering Committee Page 3 October 27, 1999 Dave Schlesinger indicated that San Diego has also experienced some beach closures as a result of urban water runoff. The work done around Mission Bay, however, has eliminated the problem in that area. Director Silva said that he represents nine cities on the Board of Supervisors and they have all discussed the major impacts of beach closures. They are developing an MOU for funding studies and will be looking for help from other cities. The Regional Board has sent letters to the cities of Fountain Valley, Huntington Beach, Newport Beach, Seal Beach and Costa Mesa putting them on notice of the possibility for violations if stone drain discharges are determined to be the source of contamination. (7) REPORT OF GENERAL COUNSEL General Counsel did not make a report. (8) DISCUSSION ITEMS (Items A-D) A. Purchasing Resolution and Delegation of Authority Conflicting Committee Actions Staff requested direction from the Steering Committee on how to proceed in the event two of the working committees made differing/conflicting recommendations on the same issue. The Steering Committee members agreed that both recommendations should be presented to the Board in an agenda report and the Board members would decide which recommendation to implement. B. Land Purchase/Lease in Central Valley— Due Diligence Update Bob Ghirelli and Layne Baroldi updated the members on the due diligence activities since the last Steering Committee meeting. A list of deal points has been developed. A formal recommendation will be presented to the Board at the November meeting. It was decided that the OMITS Committee would meet jointly with the FAHR Committee on Wednesday. November 10, to review the issues in detail before presenting to the Board. C. Membership of FAHR subcommittee re Refunds for Yorba Linda Properties Served by Septic Tanks The FAHR Committee recommended the formation of an ad hoc committee to consider refunds for property owners currently on septic systems. However, the members were identified. Chair Debay appointed Tom Saltarelli as chair of the committee, Peer Swan and Lynn Daucher as members of this Ad Hoc Committee. Staff and legal counsel will prepare a report outlining options to present to the Committee. General Counsel Tom Woodruff said that he has had discussions with County legal staff on this matter and concern was expressed about the four-year statute of limitations. Additional legal research is ongoing in order to determine whether Minutes of the Steering Committee Page 4 October 27, 1999 there are laws governing this type of refund. D. The Agenda Items scheduled to be presented to Committees in November were not reviewed. (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There was no other business discussed. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (12) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, November 17, 1999 at 4 p.m. This meeting will begin one hour earlier to allow additional time for a 6 p.m. closed session discussion with General Counsel and the full Board on the claim of litigation re Crow-Winthrop[pursuant to Government Code Section 54956.9(b)(3)(c)]. The next Board Meeting is scheduled for November 17, 1999 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:16 p.m. in Closed Session, pursuant to Government Code Sections 54957.6 and 54956.9. Confidential Minutes of the Closed Session held by the Committee have been prepared in accordance with Government Code Section 54957.2 and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. No reportable action was taken re Agenda Items Nos. 13A(1), 12A(2), 13A(3) and 13A(4). The Committee did not consider Agenda Item No. 13A(5), and no report was given. At 6:55 p.m., the Committee reconvened in regular session. Minutes of the Steedng Committee Page 5 October 27, 1999 (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:56 p.m. S bmitted by: J 'Tappan ring Committee Secretary H1wp EbLgeMaLSTEERIfMv COMM!/1fEVYIC[I001f0])YY SC Minuba.Joc 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 Steering Committee meeting held on Wednesday, October 27, 1999, was duly posted for public inspection in the main lobby of the District's offices on Thursday, October 22, 1999. IN WITNESS WHEREOF, I have hereunto`set my hand this 27th day of October, 1999. Penny Kyle, Secr ry of a Board of Directors of Orange County S'nitati District Posted: �,/C/ . �� , 1999, y�p.m. By: 6L ignature wpawlpmrav<ommyacwa.rm ORANGE COUNTY SANITATION DISTRICT 6 BOARD SECRETARY(2) phone: (714)982-2411 mailing address: PC, Box 8127 Fountain Valley.GA 9272a-812J NOTICE OF MEETING street address: ,aB44 Ellis Avenue Fountain Van.,C4 STEERING COMMITTEE 92T08-7018 ORANGE COUNTY SANITATION DISTRICT Member Agencies • WEDNESDAY, OCTOBER 27, 1999 - 5 P.M. Cities Anaheim area Buena Perk DISTRICT'S ADMINISTRATIVE OFFICE CyIpl as 10844 ELLIS AVENUE Fountain Valley Fldralwo &a. FOUNTAIN VALLEY, CALIFORNIA 92708 Gordon Grave NunBngton Beach levies La Habre La Pelme Lae Alemltaa A regular meeting of the Steering Committee of the Board of Directors of Negyar,Beach g g g Grange Orange County Sanitation District, will be held at the above location, date Retention Sent.Ana and time. Seal Beach Stanton Tvsen 1411a Perk Yorbe Linda County of Orange Sanitary Districts costa Mae. Midway City Water Districts Irvine Ranch -ID Protect the Public Health and the Enorenment through Excellence in Wastewater Systems' STEERING COMMITTEE AND BOARD MEETING DATES FOR THE NEXT TWELVE MONTHS Wednesday, October27, 1999 Wednesday, November 17', 1999 Wednesday, December 15', 1999 Wednesday, January 26, 2000 Wednesday, February 23, 2000 Wednesday, March 22, 2000 Wednesday, April 26, 2000 Wednesday, May 24, 2000 Wednesday, June 28, 2000 Wednesday, July 26, 2000 Wednesday, August 23, 2000 Wednesday, September 27, 2000 Wednesday, October 25, 2000 'Tentatively rescheduled from regular fourth Wednesday. STEERING COMMITTEE (1) Roll Call: Meeting Date: October 27. 1999 Meeting Time: 5 p.m. Meeting Adjourned: Committee Members Jan Debay, Chair of the Board ............................ John J. Collins, Past Joint Chairman .................... Peer A. Swan, Vice Chair................................... Norm Eckenrode, Chair, PDC Committee .............. Pat McGuigan, Chair, OMTS Committee ............... Tom Saltarelli, Chair, FAHR Committee ................ Jim Silva, Supervisor................................... Others Thomas L. Woodruff, General Counsel ......... .......... Staff Present Donald F. McIntyre, General Manager...................... Blake P. Anderson, Assistant General Manager....... Mike Peterman, Director of Human Resources......... Gary Streed, Director of Finance.............................. Michelle Tuchman, Director of Communications......._ Mike Moore, ECM Manager...................................... Layne Baroldi, Regulatory Specialist......................... Jean Tappan, Secretary........................................... c: Lenora Crane AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, OCTOBER 27, 1999 AT 5 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California 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 Once notless than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. In the event any matter not listed on this agenda is proposed to be submitted to the Steering Committee for discussion andror 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 District 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. (1) ROLL CALL (2) APPOINTMENT OF CHAIR PRO TEM. IF NECESSARY (3) PUBLIC COMMENTS All persons wishing to address the Steering Committee on specific agenda items or matters of general interest should do so at this time. As determined by the Chairman, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to five minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot action taken by the Committee except as authorized by Section 54954.2(b). (4) APPROVE MINUTES OF PREVIOUS MEETING Approve draft minutes of the September 22, 1999 Steering Committee meeting. w -2- October 27, 1999 Agenda (5) REPORT OF COMMITTEE CHAIR (6) REPORT OF GENERAL MANAGER A. Report of General Manager B. Report of Assistant General Manager 1. Huntington Beach Incident and Urban Flow Diversion Update (7) REPORT OF GENERAL COUNSEL (8) DISCUSSION ITEMS (Items A-D) A. Purchasing Resolution and Delegation of Authority Conflicting Committee Actions (Gary Streed/Blake Anderson) B. Land Purchase/Lease in Central Valley— Due Diligence Update (Blake Anderson/ Layne Baroldi) C. Membership of FAHR subcommittee re Refunds for Yorba Linda Properties Served by Septic Tanks (Gary Streed) D. Review Agenda Items scheduled to be presented to Committees in November (Information item only) (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (12) FUTURE MEETING DATES The next Steering Committee Meeting is scheduled for 5 p.m., Wednesday, November 17, 1999. The next Board Meeting is scheduled for 6:30 p.m., Wednesday, November 17, 1999. r -3- October 27, 1999 Agenda (13) 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 closed session and are not available for public inspection. At such time as final actions are taken by the Board on any of these subjects, the minutes will reflect all required disclosures of information. A. Convene in closed session to consider. 1. Update on labor negotiations with 501 and OCEA Units (Government Code Section 54957.6) 2. Confer with District's General Manager and designated representatives for purposes of evaluating the District's position and directing the General Manager re: items within the scope of representation by a representative of a recognized employee organization (Government Code Section 54957.6) 3. Confer with General Course re Kem County Biosolids Ordinance litigation (Government Code Section 54956.9(c) 4. Confer with General Counsel re Claim of Litigation Crow Winthrop Development Limited Partnership (Government Code Section 54956.9(b)(3)(e) 5. Consideration of possible discipline of a public employee (Government Code Section 54957) B. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session. (14) ADJOURNMENT jt M\`I DTAMGEMML ERW Cp MRIEELWCCICIWM 1GEN W Ii MEN RML WLLSEU WC -4- October 27, 1999 Agenda 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: Jan Debay (949)644-3004(Newport Beach City Hall) Secretary Jean Tappan (714)593-7101 (714)962-0356(Fax) E-mail: 1t8D08 n(d20CSd.COfll 1 DRAFT MINUTES OF COMBINED AD HOC AND STEERING COMMITTEES MEETING Wednesday, September 22, 1999 at 4:30 p.m. A meeting of the combined Ad Hoc/Steering Committees of the Orange County Sanitation District was held on Wednesday, September 22, 1999 at 4:30 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: OTHERS PRESENT: Directors Present: Thomas L. Woodruff, General Counsel Jan Debay, Chair of the Board Don Hughes Peer Swan, Vice Chair Kris Lindstrom Pat McGuigan, Chair, OMITS Committee Leslie Moulton Norm Eckenrode, Chair, PDC Committee Tom Dawes Tom Saltarelli, Chair, FAHR Committee Layne Baroldi John Collins, Past Chairman of the Board Charlie McGee Jim Silva, County Supervisor Ryal Wheeler Directors Absent: None STAFF PRESENT: Don McIntyre, General Manager Blake Anderson, Asst. General Manager AD HOC COMMITTEE MEMBERS: Jean Tappan, Committee Secretary Directors Present: Mike Petennan, Director of Human Resources John Collins, Committee Chair - Bob Ghirelli, Director of Technical Services Jan Debay, Chair of the Board Gary Streed, Director of Finance Peer Swan, Vice Chair Michelle Tuchman, Director of Communications Pat McGuigan, Chair, OMITS Committee Jim Herberg, Planning Supervisor Norm Eckenrode, Chair, PDC Committee Greg Mathews, Asst. to the General Manager Tom Saltarelli, Chair, FAHR Committee Angie Anderson, Principal Engineering Associate Peter Green, Director Directors Absent: None (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the August 25, 1999 Combined Steering and Ad Hoc Committees meeting were approved as drafted. Minutes of the Combined Meeting of the Ad Hoc/Steering Committees Page 2 September 22, 1999 (5) REPORT OF THE AD HOC COMMITTEE CHAIR Chair John Collins did not make a report. (6) REPORT OF THE DIRECTOR OF ENGINEERING The Director of Engineering was not present. (7) AD HOC COMMITTEE DISCUSSION ITEMS A. Jim Herberg reported on the District's response to comments received on the Draft Program EIR. He reviewed the more significant comments, which pertained to level of treatment, use of the 78-inch ouffall, marine environment and public health impacts and treatment facilities impacts. B. Mr. Herberg and the consultants, Kris Lindstrom and Leslie Moulton, outlined the actions that the Directors will consider at the October 27 Board Meeting regarding the Certification of the Final Program EIR. These include: 1)Approving a resolution certifying the EIR meets CEGA rquireements; 2)Adopt the findings; 3) Approve the mitigation and monitoring program; 4)Adopt the Statement of overriding considerations; and 5) Approve the preferred alternative for level of treatment. There is a 30-day period wherein the EIR may be challenged but only by those who previously participated in the process. There was a discussion of changing the 50/50 primary/secondary blend and how best to describe the impacts. "'End of Ad Hoc Committee Meeting"* (8) RECEIVE FILE AND APPROVE MINUTES OF SPECIAL STEERING COMMITTEE MEETING The minutes of the August 19, 1999 Special Steering Committee meeting were approved as drafted. (9) REPORT OF THE STEERING COMMITTEE CHAIR Chair Jan Debay did not make a report. (10) REPORT OF THE GENERAL MANAGER General Manager Don McIntyre asked staff to report on several issues. A. Bob Ghirelli, Director of Technical Services, updated the members on the Huntington Beach closure. The entire State Beach is posted, though samples are running clean. Sampling has been reduced to once per day between the Santa Ana River mouth and the Huntington Beach pier, and three times a week on either side of this stretch of beach. A dye test will be performed on the ouffall on September 30 to confirm that there are no breaks or leaks in the near-beach section and to track the plume to confirm that it Minutes of the Combined Meeting of the Ad HoclSteering Committees Page 3 September 22, 1999 is not reaching the shoreline. Other tests are underway. A contingency plan is being developed on what to do with the currently diverted urban runoff from the Huntington Beach pump stations after October 15. The siphon retrofit should be done by the end of September. A final report is being prepared on the investigation and activities of the past three months. A panel of national experts will review the report to critique what was done and provide recommendations to try to avoid this type event in the future. Staff will be making a factual presentation on what was done at a forum on AB 411 on October 7. Staff was asked to stay for the entire meeting. Blake Anderson will be making a presentation to a SCAG committee on this issue. Meetings with other agency representatives have been reduced to once a week, on Thursdays. All bacteria monitoring results are being posted on our website. Expenditures to date are $1.228 million, with$736,000 for all of the work involving the siphon including the investigations, Leaning, bypass and capital costs. A discussion of press coverage followed. Director Collins expressed disappointment that some other agencies still appear to be assigning fault to the District. B. Blake Anderson discussed a synopsis of the State Water Bond, which was recently passed by the legislature. The governor has not yet signed it. Staff will be working with SAWPA on a written agreement on how the projects in the Santa Ana River Plan will be funded and to develop a plan to reallocate funds for projects that do not go forward. Director Peer Swan asked for a matrix that outlines 1) how much money will be received by SAWPA; 2) how much money should Orange County projects receive; and 3) how much money is eligible in other sections of the bond and who has to approve dispersal of those funds. The Steering and FAHR Committees will review the information before presenting to the Board. C. Bob Ghirelli reported that staff is evaluating two proposals for biosolids disposal. The recommendation to proceed with negotiations will be brought to the OMTS Committee if the due diligence proves the project(s)viable. The Kern County Board of Supervisors are scheduled to consider a negative declaration on the biosolids ordinance on October 5 and may consider the ordinance at their October 12 meeting. General Counsel provided written comments on the negative declaration. The Directors will be asked to consider a legal challenge to the negative declaration in closed session at tonight's regular Board meeting. D. Michelle Tuchman, Director of Communications, reported that the Register will be publishing an article on sewer infrastructure throughout the county, and may be discussing the results of a District survey done with the cities in 1998. Mrs. Tuchman also announced that eight cities have passed resolutions of support for the GWRS project. Minutes of the Combined Meeting of the Ad HocfSteering Committees Page 4 September 22, 1999 E. General Manager McIntyre mentioned that the City of Brea has again requested that the District participates in a project that would sewer 17 homes in the Bexley Avenue Neighborhood that are now on septic tanks. Because this will continue to be a problem throughout the service area, Mr. McIntyre recommended that staff meet with County of Orange representatives to develop a cost-sharing formula to encourage property owners to connect to the sewer system. Several members expressed concern about the concept and the committee did not reach a decision. F. Blake Anderson updated the members on the liming for the distribution of the remaining bankruptcy litigation proceeds. Because of the request for additional fees by the litigation firm, the distribution will be delayed to mid-November. When Judge Taylor makes his decision on the request, Judge Ryan will then move on the distribution of funds to the claimants. (11) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff announced that the State Supreme Court denied the Sangermano petition for appeal. He also indicated that there are questions on the intent of Section 6 of the recently adopted ordinance regarding the capital facilities charge for significant industrial users. A report will be prepared for the FAHR Committee next month that will contain recommended language for a clarifying amendment. (12) STEERING COMMITTEE DISCUSSION ITEMS (Items A-C) A. Approve the policy and procedure for allowing the Board of Directors the option of receiving their compensation and mileage reimbursement through ACH electronic deposit into their own bank accounts (Payroll direct deposit). Motion: Moved, seconded and approved provided the program is optional. B. Financial Consolidation of Revenue Areas 1, 2, 3, 5, 6, 7, 11, 13 and 14, and for a Single User Fee Rate Structure. This item was moved to a future meeting. C. Review Agenda Items Scheduled to be presented to Committees in October. There were no changes. (13) OTHER BUSINESS COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY There were no other business, communications or supplemental agenda items. (14) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. Minutes of the Combined Meeting of the Ad Hoc/Steering Committees Page 5 September 22, 1999 (15) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (16) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, October 27, 1999 at 5 p.m. (17) CLOSED SESSION There was no closed session. (18) ADJOURNMENT The Chair declared the meeting adjourned at 6:52 p.m. Submitted by: t � ion-)Tappan S e 'ng Committee Secretary N I,ry.EYYpenJp W p>ip Lwnm,MHYYILp➢PopYlGp SCr1N Ninubf.6ov STEERING COMMITTEE Ong To M.&Din i0/271W AGENDA REPORT IT Numbe I nemNumbe (A Orange County Sanitation District FROM: Blake P. Anderson, Assistant General Manager Originator: Gary G. Streed, Director of Finance SUBJECT: PURCHASING RESOLUTION AND DELEGATION OF AUTHORITY CONFLICTING COMMITTEE ACTIONS GENERAL MANAGER'S RECOMMENDATION Review the PDC and FAHR Committee actions regarding the Purchasing Resolution and Delegation of Authority, and advise staff of preferred protocol for dealing with conflicting Committee recommendations and actions. SUMMARY Shortly after the July 1998 consolidation of the Districts, staff and General Counsel began to review, consolidate and standardize four separate resolutions that govern the procurement process. The goal was to have one source of policy, procedure and authority levels. Two standing committees became involved in reviewing staffs recommendation. The PDC Committee was selected for the initial review and approval because most of the changes were in areas related to Engineering Department procurements and contracts. Professional Service Agreements (PSAs), for example, are limited by the Resolution to professional engineering, architectural, environmental, land surveying and construction management services. The FAHR Committee was tasked with final, overall, review and making a recommendation to the Board. Recommending procurement procedures is a part of the FAHR Committee's charter. The result of this process has been a 7:1 approval by the PDC Committee, and a postponement by the FAHR Committee. Staff is concerned that this conflict highlights the potential for future, more serious conflicts, and is seeking guidance regarding the proper protocol for conflict resolution. This item is presented to the Steering Committee, because the Board leaders that are familiar with the current conflict will be able to discuss this together. PROJECT/CONTRACT COST SUMMARY N/A HW E MnUi44. GENDA.RAMu�RnnMDlAu1�.Eic Rwve]: agave Page 1 BUDGETIMPACT . � ❑ This item has been budgeted. Mine item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION The PDC Committee reviewed the proposed changes to the Purchasing Resolution and Delegation of Authority at three separate meetings. At the first two, they asked staff to return with additional information, examples and projected labor and time savings. At the third meeting, the Committee approved the proposal with a 7:1 vote. All of the approved changes discussed with the PDC dealt with Engineering related procurements and changes. The proposed Purchasing Resolution and DOA combines four existing Resolutions into one. Two of the four existing Resolutions deal exclusively with Engineering related procurements. These contain detailed requirements and authority levels for staff, the PDC and the Board. Because of the PDC-specific nature of these Resolutions, PDC approval was sought and obtained prior to discussing the entire proposal with the FAHR. At the October FAHR Committee meeting, the Directors considered the proposal and the PDC Committee recommendation. While a PDC Committee member questioned the current Director of Engineering and PDC Committee authority for addenda to PSAs for small capital projects, and a clarification of PDC Committee action of the previous week was offered, no concerns were raised about the procurement process or delegated levels of authority in general. Instead, there was extensive discussion about internal controls, "forensic audits," and financial audits that seemed to overtake the discussions. No alternative levels of authority were proposed. The FAHR did consider sending the Resolution forward without the PSA authority changes. The purpose of bringing this item before the Steering Committee is to try to focus on the concerns of the PDC and FAHR Committees, not to debate the appropriate levels of authority. Staff has researched the question regarding current authorities and has corrected Table 1, attached, to reflect the PDC approval for the future. Staff is preparing a separate report on internal controls, the results of a special KPMG audit in 1994, and the annual financial auditors' report on internal controls and management letters. This report will be presented to the FAHR Committee in November. The question staff is most concerned about tonight is how are we to reconcile a 7:1 vote by one Committee with a vote to postpone action by another. What is the proper, or expected, process in this case? What if the second Committee had voted no? 1Yv6 Wam1My.N"NnW1 -m GENDArtM➢uMR_ •CemM.02 R—. v Page 2 ALTERNATIVES None. CEQA FINDINGS N/A ATTACHMENTS 1. Table 1, "Summary of Changes to Financial Approval Levels" 2. Table 2, 'Proposed Purchasing Resolution Levels of Authority' wmwany nunv+vo.�cwv. wmsoeuune: n..,,"a erwee Page 3 Revised Table 1 a Summary of Changes to Financial Approval Levels Proposed Delegated Area Current Delegation Delegation Justification Director of Engineering Up to $50,000 per Up to$50,000 per authority for small oroiect each task order, no each task order, no task orders. authority for addenda. authority for addenda. General Manager authority No authority for Addenda not PDC Committee recommended for small addenda. addenda. exceeding $60,000. that change order or addenda authority be granted only to General Manager. General Manager authority Up to$25,000 per Up to$100,000 total Maintain consistency with GM's for PSAs and addenda. original agreement for PSA, including all authority for services, equipment and up to$25,000 addenda. and materials. PSAs are limited to additional per each Non-PSA purchases between professional engineers, addendum, NTE $50,000 and $100,000 are architectural, $50,000 total for all reported to the FAHR each environmental,land addenda. quarter. surveying and construction PSA actions by the GM are management services. reported to the PDC monthly. General Manager authority Up to$50,000 Up to $100,000 Maintain consistency with GM's for Public Works Contract (additions only) per (additions only)for authority for services, equipment and Change Orders. each additional each change order. In and materials. chance order. In no no rase may change case may change order cumulative total The proposal would allow the GM order cumulative total exceed 5% of total to begin to award Public Works exceed 5%of total contract or$100,000, Contracts between $35,000 and contract or$100,000, whichever is less. $100,000, and would increase the whichever is less. Public Works single change order authority. All Pudic Works Contracts less than Contracts are $100,000 would be By definition,a Pudic Works awarded by the awarded by the Contract must exceed $35,000. Board. I General Manager. Board Committee's Up to$50,000 per Up to$200,000 total Consistency with Board authority for PSAs and original agreement for PSA,including all Committee's current delegated Addenda. and up$50,000 per addenda. authority of blithe GM's authority. each addenda, NTE $100,000 total. Primarily affects PDC Committee. Board Committee's Up to$100,000 Up to$200,000 Consistency with Board authority for Public Works (additions only) per (additions only) per Committee's current delegated Contract and Change each additional each additional authority of 2x the GM's authority. Orders. change order. In no change order. In no case may cumulative case may cumulative Allows PDC Committee to award change order total change order total Public Works Contracts up to exceed 10%of total exceed 10%of total $200,000 without further Board contract or$200,000. contract or$200,000, action. whichever is less. whichever is less. All PIN Contracts are PDC awards contracts awarded by the Board up to$200,000. Board of Directors Over$100,000 on Over$200,000 on Time savings due to the reduction authority for non-Pudic original contract and original contract and in the volume of small projects Works Contracts, PSAs over$100,000, or over$200,000 or 10% that would have to be reviewed by and Public Works 10%of total contract, of total contract, the Board. Contracts. whichever is less, on whichever is less,on change orders and all change orders. Currently all PIN Contracts are PW Contract. awarded by the Board. \Vadon'datal\wp.etahant210bbaedUOA table 1 1D16.doc 1 012 0/1 9 9 9 Table 2 9:16 AM Proposed Purchasing Resolution Levels of Authority November 1999 Article III Article IV Article V Article VI Decision Professional Services Contracts(PSA) 1 Public Works Projects Authority Supplies, Small Capital Project(2) Major Capital Project Construction Construction Meetings, Vesting Equipment, Professional PSA Professional PSA Projects Change Training, Level Services Consultant Addenda Consultant Addenda (Over$35,000) Orders Travel Staff A up to$10,000 B up to 5,000 C up to 2,000 Division Up to$25.000 Up to$2,000 Manager Department Up to$50,000 Up to$50.000 Up to 2 add'I Issue RFO May negotiate Over$2,000 Head and 1 year years, no dollars andlor RFP General Up to$I ou'000 Up to$50,000 Up to$100,000 Up to$100,000 Up to$100,000 Lower of 5% Manager or$100,000 Board Up to$200,000 Up to$200,000 Up to$200,000 Lower of 10% Committee or$200,000 Board Of Over$100,000 Over$200,000 Over$200,000 Over$200,000 Over 10% Out of USA, Directors unless specified or$200,000 Canada and in annual budget Mexico Note(1): PSAs are limited to Professional Engineering,Architectural, Environmental, Land Sruveying and Construction Management Services Note(2): Small Capital Projects are non-public works projects estimated to cost less then$50,000. G9 xmi dtawn@10wireedWA purch type STEERING COMMITTEE Mrnn9 To ad.moo-. AGENDA REPORT IWf N5x aem Number Orange County Sanitation District 7r CJ FROM: Robert P. Ghirelli, D.Env., Director of Technical Services Originator: Layne Baroldi, Sr. Regulatory Specialist SUBJECT: BIOSOLIDS MANAGEMENT PROPOSALS: YAKIMA COMPOSTING FACILITY, TULE RANCH/MAGAN RANCH GENERAL MANAGER'S RECOMMENDATION Informational item. SUMMARY Background The District currently contracts with three biosolids management contractors (Pima Gro, Bio Gro, and Tule Ranch/Magan Ranch) to land apply biosolids in Kings, Kem, Riverside, and San Diego counties. At the time contracts were entered, there existed a surplus of permitted land for biosolids land application in the region and several biosolids management companies competing for the material. Biosolids management capacities under these existing contracts have been severely limited due to regulatory developments that have resulted in a significant decrease in land permitted for Class B biosolids land application. The most drastic regulatory development has occurred in Kern County where there has been a reduction in the amount of permitted land from approximately 52,000 acres to approximately 20,000 acres for all southern California POTWs to utilize. The Kern County ordinance will also significantly increase the cost of Class B biosolids management due to new costs associated with annual permit fees, sampling and analysis, inspection fees, vehicle license fees, transportation, and legal and consulting costs. Class B biosolids will be banned in Kern County on January 1, 2003. Regulatory developments in other counties and Sacramento will result in more onerous regulations, decreased capacity, and increased costs to manage Class B biosolids. These regulatory developments demand that the District take immediate action to insure reliable long-term biosolids management options. As a result of this dynamic regulatory climate, staff has witnessed substantial changes in biosolids technologies, contractors, economics, sites, and markets. Such changes demands continued awareness and evaluation of the few viable unsolicited proposals and technologies submitted to the District for long-term biosolids management. At the October 6, 1999 OMITS committee meeting, staff recommended that the District pursue two of these unsolicited proposals, Tule Ranch/Magan Ranch and the Yakima Company, to widen the District's biosolids management options. The OMITS Committee directed staff to negotiate contract terms with the Yakima Company for the management of the District's biosolids, and to negotiate with Tule Ranch/Magan Ranch for the purchase of the entire site for long-term management of the District's biosolids. The results of these negotiations are to be brought back to the Board for approval X\wy WY615PlamIEMGENOe`eadm.SWunO\080 tlM ze.W sagas Page 1 Tule Ranch/Magan Ranch Tule Ranch/Magan Ranch provides the District with access to 1,808 acres of Class B permitted land in Kings County. Tule Ranch/Magan Ranch also would provide the District with 4,026 acres in Kem County for the application of Class B biosolids for three years and Class A, Exceptional Quality (EQ) biosolids thereafter. Since the October OMTS Committee meeting, staff and Districts Counsel have met with Tule Ranch/Magan Ranch and are in the process of drafting a land purchase contract and biosolids management contract that will be presented to the various Committees and the Board of Directors for approval. The basic proposed deal points include: ♦ Purchase price of the 1,808 acres of land, located in Kings County, to be$1,800 per acre ($3,254,400), • Option on the 4,026 acres located in Kem County, pending successful permitting of a compost facility by Tule Ranch/Magan Ranch, to be approximately$1,129 per acre ($4,545,600), • Total cost of the 5,834 acre site to be approximately $1,337/acre ($7.8M), • Biosolids management, including transportation by Tule Ranch/Magan Ranch at$22.40 per ton (reduced from $25.00 per ton and $28.00 per ton for inclement weather). Staff and Counsel are negotiating several additional deal points with Tule Ranch/Magan Ranch regarding the site purchase including crop revenue sharing, contracting with other agencies for excess capacity, compost site permitting responsibilities, compost site waste stream acquisition, and Kem County litigation. The Yakima Comoanv Staff received an unsolicited offer from the Yakima Company to manage the Districts biosolids at a proposed compost facility in western Kem County. The proposed facility will be designed to receive, store, and compost up to 600,000 tons per year of organic feed stocks, including up to 360,000 tons per year of biosolids. Approximately 260,000 tons per year of the biosolids capacity remains available. The Yakima Company has commitments from the owners of 29,000 acres of farmland in the area to use the finished product. Since the October OMTS Committee meeting, staff has been in contact with the Yakima Company to develop an agreement. Districts Counsel is in the process of drafting a biosolids management contract that will be presented to the various Committees and the Board of Directors for approval. The basic proposed deal points include: • Contracting for 100,000 tons of capacity for ten years, • Payment of a $1.25M capacity fee, • Receiving a composting fee of$25.75 per ton plus annual permit fees of less than $0.50 per ton, and CPI adjustments, • 100% of the compost revenue to the District, • First right of refusal on the site, and • Two additional five-year options. Districts staff has met with staff from the County Sanitation District of Los Angeles County (CSDLAC)to discuss a proposal to jointly purchase the site, develop the compost facility, and contract with the Yakima Company for management of the facility. The Yakima Company is willing to participate in such an agreement. The specific deal points of such an agreement are being developed. HF yy�MWm GENDA6 wa 9nnn910 W" R. � Page 2 Contractinc with the Yakima Company and ourchasinc Tule Ranch/Macan Ranch will: ♦ Provide the District with a secure inclement weather biosolids management site in Kern and Kings Counties, • Allow for the development of a permitted compost site to achieve the District's Strategic Plan goal of obtaining Class A EQ biosolids, • Provide long-term biosolids management capacity security, and • Control price fluctuations. Unfortunately, the success of permitting and constructing a Class A compost facility in Kern or Kings Counties is yet to be determined. District's consultants in Kern County believe that both sites will be able to obtain all of the required permits. Each site must apply to the county for a Conditional Use Permit, the State for a solid waste facility permit, and air quality permits, and be subject to the required public hearing and comment process. Biosolids compost is not exempt from regulation. The federal biosolids regulation, 40 CFR Part 503, regulated biosolids composting. California's Waste Board regulated the compost facility, and the California Department of Food and Agriculture is proposing to regulate the compost product Local government agencies are becoming active in regulating biosolids compost. Imperial County recently drafted a proposed biosolids ordinance that would ban the use of Class A EQ biosolids, including biosolids compost. Alternatives and Concerns The long-term biosolids management decision to acquire Tule Ranch/Magan Ranch and contract with the Yakima Company may preclude the District's ability to take advantage of developing technologies and technologies on the horizon for many years. Many of these technologies, including heat drying, conversion to fuel, etc., have been around for decades but in the past have not been implemented successfully. District's staff is currently reviewing a promising drying technology that is being presented by the Minergy Corporation, a division of Wisconsin Energy. Such a drying technology would allow the District to create a Class A EQ biosolid product on-site. Minergy's drying technology has recently been Implemented at several sites in Wisconsin and the Netherlands, and contracted for by the City of Detroit. The use of such a technology would be consistent with the purchase of Tule Ranch/Magan Ranch for a reuse site for the dried Class A EQ biosolids, but inconsistent in contracting with the Yakima Company for composting. Staff expects a formal, unsolicited proposal from Minergy to be delivered prior to the November Steering Committee meeting. The time available to secure viable long-term biosolids management options provided by Tule Ranch/Magan Ranch and the Yakima Company may preclude the District from exploring new technologies. Staff will continue to negotiate and draft contracts with Tule Ranch/Magan Ranch and the Yakima Company for possible presentation to the November Board meeting while continuing to review the Minergy proposal. PROJECT/CONTRACT COST SUMMARY BUDGETIMPACT ❑ This item has been budgeted. (Line Rem: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) Ht ftlw SAUam,dIMGENDAZB Ids S ne IGOdW as„sad I=W Page 3 i ADDITIONAL INFORMATION ALTERNATIVES CEQA FINDINGS ATTACHMENTS H:Wry.WWU$$ g ,MGENGA%' bds$IBCny 10 B9.001 R..M: YlOIM Page 4 STEERING COMMITTEE Meenngoete Te Bd.or Dir. rgrnrgg AGENDA REPORT I Nnumbv Item NumtM Orange County Sanitation District FROM: Donald F. McIntyre, General Manager Originator: Jean Tappan, Committee Secretary SUBJECT: November 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 November. SUMMARY Staff routinely prepares for the Steering Committee a list of items scheduled 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 November: OMTS Committee: 1. Report on Central Generation Overhaul Charges 2. District Assessment and Reinvention Team (DART) Update 3. Report on Plant 2 Earthquake Damage Contingency Plans 4. Benchmarking Report PDC Committee: 1. Approve Addendum No. 6 to Professional Services Agreement for Job No. J-39, Ocean Outfall Investigation and Minor Repairs 2. Approve Professional Services Agreement for Job No. SP19980029, Main Entrance Traffic Configuration Study 3. Approve plans and specifications, receive and file bid tabulation and recommendation, and award contract for Job No. SP19990065, Demolition of Warehouse and Area Improvements at Plant No. 2 FAHR Committee: 1. 1998-99 Comprehensive Annual Report 2. 1999-00 First Quarter Operational and Financial Report 3. Update of Human Resources Policies and Procedures 4. COP Covenant Restructuring 5. Delegation of Authority PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. (Line item: I ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION NA ALTERNATIVES NA CEQA FINDINGS Not a project. ATTACHMENTS NA it H:M9.EhW mEISY,mO CamNwIGTOcflV1Y!M M H»mOn�.Mc n.n..a. vmae Page 2