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Home My WebLink About2002-05 DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, May 22, 2002 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, May 22, 2002 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: OTHERS PRESENT: Directors Present: Thomas L.Woodruff, General Counsel Norm Eckenrode, Chair Joey Racano Shirley McCracken, Vioe Chair Randy Fuhnnan Pat McGuigan, Chairman, OMTS Committee Doug Korthof Steve Anderson, PDC Committee Jan Vandersloot Brian Brady, Chairman, FAHR Committee STAFF PRESENT: Blake Anderson, General Manager Directors Absent: Bob Ghirelli, Director of Technical Services Jim Silva, County Supervisor David Ludwin, Director of Engineering Greg Mathews, Assistant to the General Manager Lisa Murphy, Communications Manager Ryal Wheeler, Maintenance Supervisor Lynn Jensen,AoTibtrative Assistant IN THE OFFICE OF THE SECRETARY (2) APPOINTMENT OF CHAIR PRO TEM ORANGE coumw ee-iiiimoti DISTRICT No appointment was necessary. JUN 26 2002 (3) PUBLIC COMMENTS IV 1k, Mr. Doug Korthof suggested that the chair express an official position on the waiver. Mr. Jan Vandersloot requested that an explanation be given regarding the scientists' position on bacteria levels on the beach. Mr.Joey Racano gave an apology to Director Steve Anderson regarding his vote on the renewal of the waiver. Mr. Randy Fuhrman suggested that in the event the effluent plume reaches shore,the projected long-term effects should be made public. (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the April 24, 2002 Steering Committee meeting were approved as drafted. (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Eckenrode reported on the spring CASA conference where the following items were covered: Changes in environmental laws; changes in employment laws; and pending legislation. " Minutes of the Steering Committee Page 2 May 22, 2002 Chair Eckenrode indicated he is very interested in microfiltration, and thinks it will be well-received as further studies are completed. (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson and staff reported on several Issues, as follows. A. Maddox BIII (AB1969) Mr.Anderson reported on the current status of the Maddox bill. The Assembly Appropriations Committee approved the bill today and referred it to the full Assembly for consideration. Lisa Murphy indicated the full local disclosure language has been added to the bill, which passed with one no vote. B. Harman Bill (AB 1892) Mr. Anderson provided a progress report on the Harman Bill, which has moved successfully through the assembly and has been referred to the Senate. He explained that the state is not required to pay for the directives of the bill, (concerning dry weather runoff)which has little opposition at this time. C. GW RS Progress Report Blake Anderson reported on the status of the GW RS Project which has received $30 million from the state for the project. The project is to include areas up to the Anaheim Forebay, which might be too broad a scope for the project. He announced the retirement of Tom Dawes, project manager, whose temporary replacement has been announced as BIII Everest. Mr.Anderson noted OCSD would like to participate in the selection of a new project manager. D. Disinfection Project Mr. Anderson reported on the progress of getting the disinfection project moving forward, with the hope that we will be able to disinfect during at least part of the summer with help from the Regional Water Quality Control Board. A motion was made, seconded, and unanimously carried to recommend moving forward with this project. E. SARI Relocation Project Blake Anderson asked for direction from the Steering Committee regarding his proposed letter to SAWPA requiring early resolution of the$3 million that SAW PA owes us for work on the SARI Line relocation project. Mr.Woodruff spoke regarding the new attorney review of the agreement, which will likely now go through further extensive reviews, even though it has been through over 30 drafts to date. The Steering Committee directed him to send the"get tough"letter to SAW PA. Mr.Anderson reported that CalTrans will be pumping out the hot storm drain in Newport Beach. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff provided an update on two matters of litigation. Mr.Woodruff reported the Tran lawsuit was settled for far less than the requested amount, as was the Newport Beach contractor lawsuit. (8) DISCUSSION ITEMS (Items A-H) A. County of Orange request to waive Connection fees for Select Properties in Unincorporated area of Santa Ana. Minutes of the Steering Committee Page 3 May 22, 2002 After discussion,the Steering Committee directed staff to continue to charge new connections consistent with adopted fee schedules, but to allow time payments for large sums due. B. Consider Ballot Initiative for 301(h)Waiver Director Steve Anderson asked that the Steering Committee consider the idea of placing a ballot measure regarding the ocean discharge question on the November ballot. After discussion,the Steering Committee directed staff to put a brief paper together discussing the pros and cons and summary of the logistics of putting such a measure on the ballot. C. Buy American Policy The Steering Committee discussed the question of a buy American policy related to the purchase of equipment for the Groundwater Replenishment System. The Steering Committee decided to recommend to the Board that Item 6-C be referred back to the G W RS JCC. D. Preparation for June 26 Board Meeting The Steering Committee discussed preparations for the upcoming June 26 Board meeting, presently scheduled as the night the Board decides on level of treatment. After discussion,the Steering Committee directed staff to continue to assume a decision on June 26 and for staff to outline the alternatives without a recommendation. E. Consider changing Board meeting start time and agenda order for June 26, 2002 Board meeting; i.e. Steering Committee at 5 p.m., Board Meeting Closed Session at 6:30 p.m. and consideration of regular agenda at 7 P.M. The Committee decided to change the start of the June 26 Board meeting to 6:30 p.m. and will begin the meeting in closed session.The Board will reconvene in open session at 7:p.m. F. Review and consideration of Agenda Items for the operating committee meetings in June. The agenda items scheduled to be presented to the operating committees in June were reviewed. G. Review and consideration of Agenda Items for Board of Directors Meeting of May 22, 2002. The agenda items for tonighfa Board meeting were reviewed to answer questions or get clarification. (9) OTHER BUSINESS COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. Minutes of the Steering Committee Page 4 May 22, 2002 (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, June 26, 2002 at 5 p.m. There will be a Special Board Meeting on Wednesday,June 19, beginning at 6 p.m. The next Regular Board Meefing is scheduled for Wednesday, June 26, 2002 at 6:30 p.m. (13) CLOSED SESSION The Committee convened at 6:35 p.m. in Closed Session, pursuant to Section 54956.9, to discuss two potential cases of litigation. Minutes of the Closed Session are on file with the Board Secretary. Confidential Minutes of the Closed Session held by the Steering 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. A report of the recommended actions will be publicly reported at the time the approved actions become final. At 6:50 p.m., the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:50 p.m. Submitted by: L�Jef( nsen Administrative Assistant G:I".dfebgenda Ott frog CnmmfHee102MvIa052202 SC NnWt ,dx STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 549542, I hereby certify that the Notice and the Agenda for the Steering Committee meeting held on Wednesday, May 22, 2002, was duly posted for public inspection in the main lobby of the District's offices on Thursday, May 16, 2002. IN WITNESS WHEREOF, I have hereunto set my hand this 22nd day of May,2002. Penny Kyle, Secretary of the and of Directors of Orange County Sanitation Dis rict Posted: /' - �- ,2002, a Jc p.m. f(J' By: Signat de .maocym�sucanmyostiiy.tm .5 �� ORANGE COUNTY SANITATION DISTRICT l Phone: (714)962-2411 1a: O1a1962M56 .a.w..ue.tam gem,,.aaa:..e: PO.Box 8127 NOTICE OF MEETING Fountain Valley.27 92728-8127 OF THE et,.et add.: STEERING COMMITTEE 10B"Ellis Awa ue counter,Valley.CA 92708-7018 ORANGE COUNTY SANITATION DISTRICT Ateaaa WEDNESDAY, MAY 22, 2002 - 5 P.M. Ms. Anahpmn Bras DISTRICT'S ADMINISTRATIVE OFFICE Bran Hoene perk 10844 ELLIS AVENUE aunrnn�eey F y FOUNTAIN VALLEY, CALIFORNIA 92708 Fullerton Geller Gnme HNNrlamn Beach 11was La Habra I.a Palma A regular meeting of the Steering Committee of the Board of Directors of Lop Aachada Newyort Beach Orange County Sanitation District will be held at the above location, date and Oranw time. Plateaus servo Ana Seal Beach station Tustin Vila Perk Tana und. G..ea M Oran,. 8enkaer Muni". Costs Mo.. Midway coy W.nt Ol.tAcc. Irving Ranch y To maintain world-class leadership in wastewater and water respurcn manaeament. STEERING COMMITTEE AND BOARD MEETING DATES FOR THE NEXT TWELVE MONTHS Wednesday, May 22, 2002 Wednesday, June 27, 2002 Wednesday, July 17, 2002' Wednesday, August 28, 2002 Wednesday, September 25, 2002 Wednesday, October 23, 2002 Wednesday, November 20, 2002' Wednesday, December 18, 2002' Wednesday, January 22, 2003 Wednesday, February 26, 2003 Wednesday, March 26, 2003 Wednesday, April 23, 2003 'Tentatively rescheduled from regular fourth Wednesday. STEERING COMMITTEE (1) Roll Call: Meeting Date: May 22, 2002 Meeting Time: 5 p.m. Meeting Adjourned: Committee Members Norm Eckenrode, Board Chair Shirley McCracken, Board Vice Chair Steve Anderson, Chair, PDC Committee Pat McGuigan, Chair, OMTS Committee Brian Brady, Chair, FAHR Committee Jim Silva, Supervisor Others Thomas L.Woodruff, General Counsel _ Don Hughes Staff Present Blake P. Anderson, General Manager................................ Bob Ghirelli, Director of Technical Services....................... David Ludwin, Director of Engineering............................... Patrick Miles, Director of Information Technology.............. Robert Ooten, Director of Operations & Maintenance........_ Gary Streed, Director of Finance........................................ Lisa Tomko, Director of Human Resources........................ Greg Mathews,Assistant to the General Manager............. Lisa Murphy, Communications Manager............................ Penny Kyle, Secretary...................................................... c: Lenora Crane AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, MAY 22, 2002 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 District's Administrative Office not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available forpublic inspection in the once of the Board Secretary. In the event any matter not listed on this agenda is proposed to be submitted to the Steering Committee for discussion and/or action, It will be done in compliance with Section 54954.2(b)as an emergency item or that there is a need to take immediate action which need came to the attention of the 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. All current agendas and meeting minutes are also available via OCSD's Internet site located at www.ocsd.com. Upon entering OCSD's web site, please navigate to the Board of Directors section. (1) ROLL CAL (2) APPOINTMENT OF CHAIR PRO TEM IF NECESSARY (3) PUBLIC COMMENTS All persons wishing to address the Steering Committee on specitc agenda items or matters of general Interest should do so at this time. As determined bythe Chairman, speakers maybe deferred until the specific item is taken for discussion and remarks maybe limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot action taken by the Committee a)cept as authorized by Section 54954.2(b). i -2- May 22, 2002 Agenda 4) APPROVE MINUTES OF PREVIOUS MEETING Approve draft minutes of the April 24, 2002 Steering Committee meeting- (5) REPORT OF COMMITTEE CHAIR (6) REPORT OF GENERAL MANAGER A. Maddox Bill (AB1969) B. Harmon Bill (AB 1892) C. GWRS Progress Report (7) REPORT OF GENERAL COUNSEL (8) DISCUSSION ITEMS (Items A-H) A. County of Orange request to waive Connection Fees for Select Properties in Unincorporated area of Santa Ana (see affached April 26, 2002lefter from William Mahoney, County of Orange) (Blake Anderson/Tom Woodruff) B. Consider Ballot Initiative for 301(h)Waiver (Director Steve Anderson) C. Buy American Policy(Tom Woodruff) D. Preparation for June 26 Board Meeting (Director Norm Eckenrode) E. Consider changing Board meeting start time and agenda order br June 26, 2002 Board meeting; i.e. Steering Committee at 5 p.m., Board Weting Closed Session at 6:30 p.m. and consideration of regular agenda at 7 p.m. F. Review Agenda Items scheduled to be presented to Committees in June (Information item only) H. Review and consideration of Agenda Items for Board of Directors Meeting of May 22, 2002 (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 -3- May 22, 2002 Agenda There is a Special Board Meeting scheduled for 6 p.m., Wednesday. June 19, 2002. The next Steering Committee Meeting is scheduled for 5 p.m., Wednesday, June 26, 2002, The next Regular Board Meeting is scheduled for a proposed time of 6:30 p.m., Wednesday, June 26, 2002. (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 mayconvene 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, maybe reviewed by the Directors during a permitted closed session and are not mailable for public inspection. At such time as final actions are taken bythe Board on anyof these subjects, the minutes will reflect all required disclosures of information. A. Convene in closed session, if necessary 1. Confer with General Counsel to discuss three items of new litigation, Pall Corporation v. Orange County Sanitation District, at al., Orange County Superior Court Case No. 02CCO6622 (Govemment Code Section 54956.9) 2. Confer with General Counsel -Anticipated Litigation. Signifcant exposure to litigation pursuant to California Government Code Section 54956.9(b): Ball Road Improvements within City of Anaheim. B. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session. (14) ADJOURNMENT Ij g9wp.dleladminMMagenda mwp -b rd_mmmillee\05.22.02 stewing ante agenda doc -4- May 22, 2002 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: Norm Eckenrode (714)993-5251 (Placentia Clty Hall) Committee Staff Contact: Blake Anderson (714)593-7110 Secretary: Jean Tappan (714)593.7101 (714)992-0355(Fax) E-mail: ItaDDa n(M OCSd.COrn DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, April24, 2002 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, April 24, 2002 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: OTHERS PRESENT: Directors Present: Thomas L. Woodruff, General Counsel Norm Eckenrode, Chair Don Hughes Shirley McCracken, Vice Chair Randy Fuhnnan Pat McGuigan, Chairman, OMTS Committee Doug Korthof Steve Anderson, PDC Committee Don Bassett, Montgomery Watson Harza Brian Brady, Chairman, FAHR Committee Jim Silva, County Supervisor STAFF PRESENT: _ Blake Anderson, General Manager Directors Absent: Bob Ghh8lli, Director of Technical Services None David Ludwin, Director of Engineering Greg Mathews, Assistant to the General Manager Lisa Murphy, Communications Manager Jennifer Cabral, Public Information Specialist Andrei loan, Project Manager Jean Tappan, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS Mr. Doug Korthof spoke on the efforts to defeat the 301(h)waiver and the need for secondary treatment followed by tertiary treatment. Mr. Randy Fuhrman discussed his proposal for increasing user fees at a faster rate to reduce the amount of future debt financing. He suggested that the Steering Committee consider planning for known and anticipated initiatives in the future now. He also asked that consideration be given to beneficial reuse of all the water as well as biosolids. General Manager Blake Anderson responded that staff will evaluate Mr. Fuhrman's proposal to ramp up user fees and a report will be presented to the FAHR Committee at a future meeting. (4) RECEIVE.FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the March 27, 2002 Steering Committee meeting were approved as drafted. Minutes of the Steering Committee Page 2 April 24, 2002 (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Eckenrode reported on the Environment Safety and Toxics Materials Committee's AB 1969 hearing he and Blake attended in Sacramento on Tuesday,April 23. He was disappointed in the proceedings, specifically in the amount of time allowed for the opponents to speak. It appears that the bill will be an unfunded mandate at the cost of about$400.000,000. Blake also reported on his testimony and the testimony of others on behalf of the District. The bill must go to the full Assembly and then to the Senate through one or two committees. Chair Eckenrode announced that there is a tour of the water district and a briefing on GW RS on Friday and he will be attending along with Lynn Daucher and Ken Maddox. (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson and staff reported on several issues, as follows. A. Grand Jury Report on 20 Meter Study Mr.Anderson explained that the 20 Meter Study was conducted in 1996 to determine whether the plume field from the outfall was impacting surface waters from the beach to the three-mile limit. The results were never released, though they were reported to the Regional Water Quality Control Board, EPA and others at a meeting held on September 3, 1997.. The Grand Jury investigation of this incident resulted in a report on their findings and included seven recommendations, all dealing with the issue of open communication and reporting. Blake indicated that several of the recommendations had already been done and that the others would be implemented to provide transparency. Lisa Murphy, communications manager, reported that the District sent out a press release and several newspapers have indicated they will be reporting on the issue. B. Maddox Bill (AB1969) This was discussed earlier in the meeting. C. Onshore Investigation Report Bob Ghirelli, director of technical services, reported that the directors have a copy of the executive summary of this report in their Board meeting folders. This report, prepared by OCSD staff, details the results of a survey of all-known possible onshore contamination sources in the Huntington Beach area. Recommendations are outlined in the report. Several of these are in the jurisdiction of the county, cities of Huntington Beach and Newport Beach, as well as State Parks, the Regional Board and the OC Health Care Agency. This report has been released to the press and will be one of the discussion items at the Special May 15 Board meeting. D. Telephone Survey Results Lisa Murphy provided an update to the committee on the information that will be presented at the Board Meeting by our consultant. E. SARI Relocation Project Status/Expert Panel Report Blake Anderson provided the background on the project. A panel of five experts met and reviewed the project and evaluated the expanded altematives study. Andrei loan, project manager, reported on the panel's findings. The Joint Management Committee received a presentation on these results. OCSD and SAW PA are trying to schedule a meeting with the OC flood control district and the Corps of Engineers on the options. Before any work can begin on any of the additional alternatives, the proposed projects Minutes of the Steering Committee Page 3 April 24, 2002 will have to go through the CEOA process,which could add two years to the project and cost an additional$1 million. If the original Alternative D is chosen, construction can begin as soon as all issues are resolved. Implementing Alternative D would eliminate the need to upgrade the existing pipeline located within SAVI Ranch, resulting in lower overall costs. Mr.Anderson reported that SAW PA has indicated an interest in purchasing the line upstream of SAVI Ranch and its Board has directed staff to negotiate an agreement. SAW PA will be creating a list of deal points for consideration by both boards. F. GW RS Progress Report There has been considerable discussion at the Joint Coordinating Committee meetings on the direction of this project. There is a need to to make sure all the major elements are understood and reach a consensus between the two boards. The agreement has not been finalized. Chair Eckenrode discussed the reasons that the project should go forward. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff did not make a report. (8) DISCUSSION ITEMS(Items A-E) A. MW D Grant to OCW D re Barrier Wells and Relationship to GW RS This item was moved to a future meeting. B. Determine 'Dark' month for Standing Committees The members recommended that the Standing Committees will not meeting in July. This will be discussed with the Board at tonight's meeting. C. Consider additional Special Board Meetings on May 15 and June 19, 2002 In order for the directors to understand the results of the beach studies and the completion of the Strategic Plan, staff is recommending that two special meetings be held prior to the level of treatment decision scheduled for the June 26, 2002 meeting. Special briefings could be held if the directors who can not make the meeting request them. It was approved to recommend that the Board consider these additional meetings. D. Review Agenda Items scheduled to be presented to the Standing Committees in May. There was no discussion. E. Review and consideration of Agenda Items for Board of Directors Meeting of April 24, 2002 There was no discussion. - (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY Staff was asked to consider a response to Congresswoman Sanchei s letter on 'Buy American.' (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. Minutes of the Steering Committee Page 4 April 24,2002 (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, May 22,2002 at 5 p.m. There will be a Special Board Meeting on Wednesday, May 15, beginning at 6 p.m. The next Regular Board Meeting is scheduled for Wednesday, May 22,2002 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:37 p.m. in Closed Session, pursuant to Section 54956.9,to discuss two potential cases of litigation. Minutes of the Closed Session are on file with the Board Secretary. Confidential Minutes of the Closed Session held by the Steering 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. A report of the recommended actions will be publicly reported at the time the approved actions become final. At 6:55 p.m.,the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:55 p.m. Submitted by: 46af Tappan ring Committee Secretary 6'IM� V4IeeMp CammltlealPlNpM02J@ SL MNNB9.ES Agenda Item #8A County of Orange April 26, 2002 California Mr. Blake Anderson,General Manager Orange County Sanitation District c..Y E xecutive ORcer l Schumacher,ra.u. P.O.Box 8127 wmy E Fountain Valley,CA 92729-8127 Dear Blake: The County of Orange and the City of Santa Ana are negotiating the annexation of unincorporated County territory into the City. The area covers 24.8 acres and contains approximately 49 single family and 33 multi-family residential units. The area is west of the Costa Mesa Freeway(55),east of North Tustin Avenue, north of Seventeenth Street and south of Santa Clara Avenue. There are a few properties on Deodar Street within the unincorporated area that are currently connected to Santa Ana's public sewer system; the remaining properties use septic tanks. The City and the County are developing a joint funding mechanism to enable all the properties to be connected to public sewer infrastructure. As you and I have previously discussed,we are requesting that the Orange County Sanitation District waive connection fees for this project. Thanks for your consideration of this request. If you have questions or concems, please call me at 714-834-6054. Since // i�m�Mahoney, Assistant CEO trategic and Intergovernmental Affairs f cc: Michael Schumacher County Executive Office 10 Civic Center Plaza Thud Floor Santa Ana.Califomia 927014062 Tel. (714)834-2345 F= (714)934-4416 Web; www.oe.ea.gov LAW OFFICES OF WOODRUFF, SPRADLIN & SMART A PROFESSIONAL CONaONATION MEMORANDUM TO: Chair and Members of Steering Committee Orange County Sanitation District FROM: General Counsel DATE: May 13, 2002 RE: County of Orange Program to Eliminate Septic Tanks — Reguest for Waiver of OCSD Capital Facilities Capacity Charges The County of Orange has undertaken a County-wide Program to inventory and evaluate the extent of use of septic tanks for wastewater disposal of properties located throughout the County. In light of the awareness of the need to protect the underground water table and other areas as a result of urban run-off, the County has learned that the U.S. Environmental Protection Agency and the State of California has ranked septic tank use as one of the major causes of pollution. Accordingly, the County is embarking on a Program to require all properties presently being served by septic tanks to convert by ceasing the use and connecting the structures to the local sewer system. The OCSD Staff has participated in some discussions with the County Staff on this matter, including a review of the draft Policy Option paper being prepared for consideration by the Board of Supervisors. OCSD has recently received a specific request from the Office of the County Executive Officer to have the District waive its Capital Facilities Capacity Charges ("CFCC's") for an existing residential development located on 24.8 acres of land, and containing 49 single-family and 33 multiple-family residential units. The area is located north of 17" Street, east of Tustin Avenue, and west of the Route 55 Freeway, contiguous to and within the sphere of influence of the City of Santa Ana. As part Of this Program, it is proposed that this territory be annexed to the City, and the County is proposing to require that the properties be taken off the septic tanks and connected to _ the local sewers. Apparently, there are a few of the properties within this area that are presently connected to the public sewer system, but the overwhelming majority are not. Based on the present fee schedule, the CFCC's would be in a total amount of approximately $125.000. .xtaonan\LO i May 13, 2002 Page 2 There are several legal issues relating to this Program and this specific request, but the most important and immediate issue relates to the possibility of the waiver of the CFCC's by the District. It is my opinion that the present provision of the CFCC Ordinance which establishes the fees, allows for no waiver or exemption of the payment of those fees. The only way to accomplish this would be to first adopt a new Ordinance amending the present to allow for a waiver or exemption under specified conditions. Historically, OCSD has received a number of these requests over the years from property owners in various of the former Districts, including Districts Nos. 1, 2, 5, and 7. Without exception, OCSD has never chosen to waive those fees, although in one instance, the property was reclassified from "residential" to "commercial", and the fees were established on that basis. The last time OCSD made a comprehensive review of its CFCC structure, some consideration was given as to whether a waiver provision should be included in the Ordinance. It was ultimately decided by the Board that it should not. The principal reasons behind this lie in the fact that OCSD is obligated to establish its fees on a fair and equitable basis among all users. Furthermore, under the provisions of California Government Code Section 66016 and California Constitution Article X111D (Proposition 218), OCSD is obligated to set its fees at a rate that does not exceed the cost to provide the service. If in fact a block of properties are allowed to connect without paying the fees, then the ultimate cost of the service will be paid by a lesser number, and accordingly, at a slightly higher fee, and thus would not satisfy the legal test of fair and equitable, and not-to-exceed the actual cost of providing the service. This very issue was one of several that was recently litigated in the challenge to our Ordinance initiated by Crow Winthrop Development Limited Partnership, and the District was able to successfully prevail in Court by defending the validity of the Ordinance as being fair and equitable among all properties being served. Additionally, there is a possible challenge that could be raised by the U.S. Environmental Protection Agency on the basis that when the District received grant funds for the construction of its Treatment Plants many years ago, the grant contract conditions included one that would require the District to impose charges on an equitable basis among all users. At least, in theory, the EPA has a right to insist on performance of that, and to challenge any waiver of fees that could otherwise be granted by the District. The incidental issues related to this can be addressed, in summary, as follows: i. Under the provisions of the County Sanitation District Act (Health & Safety Code Section 4762), the District can order any properties presently on a septic tank to be connected to its system on the basis that the septic tanks constitute a public nuisance. The Countys draft Staff Report also makes reference to certain other provisions on this subject. ]sVeDo \LV l May 13, 2002 Page 3 2. The District can enter into an Agreement to allow for a deferred schedule of payments of the CFCC's, pursuant to Health & Safety Code Section 5474. The time can go for as long as 15 years, and would contain an interest rate in an amount up to 12% per annum. 3. The District could form an Improvement District, pursuant to Health & Safety Code Section 4806, whereby the District would initially pay the cost of the up- front connections, including the connection fees, and those would be distributed amongst the property owners benefited, and the payment would be made on the tax rolls over a period of years. THOMAS L. WOODRUFF GENERAL COUNSEL TLw:pl cc: Mr. B.P. Anderson Mr. G.G. Streed STEERING COMMITTEE Meeting Date To Bd.of Dir. os/22/oz AGENDA REPORT Item Item"°"°° BG Orange County Sanitation District FROM: Blake P. Anderson, General Manager Originator: Jean Tappan, Committee Secretary SUBJECT: May Agenda Items for Consideration by the Board GENERAL MANAGER'S RECOMMENDATION Review with staff the agenda items tentatively scheduled for consideration by the Board at its May meeting. SUMMARY Staff routinely prepares for the Steering Committee a list of items scheduled for presentation to the Working Committees and the Board 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 Board in May: 1. (Consent Items) 2. Actions from OMTS Committee 3. Actions from PDC Committee 4. Actions from FAHR Committee 5. Actions from GWRS Cooperative Committee 6. (Others) PROJECTICONTRACT COST SUMMARY N/A BUDGET IMPACT ❑ 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) ADDITIONAL INFORMATION NA 8. Authorize General Manager to award Construction Contract for Job J-90, Engineering Trailer Complex 9. Approve Addendum No. 2 to PSA for Job J-84, Space Allocation and Interior Renovation 10. Authorize General Manager to Negotiate Addendum No. 3 to PSA for Phase III, Job J-84, Space Allocation and Interior Renovation 11. Approve Addendum No. 3 to PSA for Job J-35-2, Area Classification Implementation Plan 12. Approve Addendum No. 3 to PSA with Black& Veatch for Contract 2-41, SARI Relocation and Protection 13. Report on PCH Force Main Failures 14. 2002-03 Budgets Briefing FAHR Committee: 1. Renew Excess Workers' Compensation Insurance 2. Renew Excess General Liability Insurance 3. Renew All-risk and Property Insurance 4. Approve 2002-03 Operating, Capital, COP Service and Self- Insurance Budgets 5. Approve Investment Policy 6. Adopt safety Policies PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT ❑ 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) ADDITIONAL INFORMATION NA ALTERNATIVES NA CEQA FINDINGS Not a project. ATTACHMENTS NA c.»y.memv�oamaaw co,n..neemzunuruszzoz rs,a nez mrdroe eo< R. .d. a2a9a Page 2 Orange County Sanitation District (714) 962-2411 www.ocsd.com mailing address: P.O. Box 8127 Fountain Valley, California 92728-8127 street address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 Published on recycled paper