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HomeMy WebLinkAbout2002-09 DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, September 25, 2002 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, September 25, 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: STAFF PRESENT: Directors Present: Blake Anderson, General Manager Shirley McCracken, Chair Bob Ghirelli, Director of Technical Services Steve Anderson, Vice Chair David Ludwin, Director of Engineering Pat McGuigan, Chairman, OMTS Committee Bob Ooten, Director of Operations and Russell Patterson, Chairman, PDC Committee Maintenance Brian Brady, Chairman, FAHR Committee Lisa Murphy, Communications Manager Norm Eckenrode, Past Board Chair Jim Colston, Senior Regulatory Specialist Jean Tappan, Committee Secretary Directors Absent: Jim Silva, County Supervisor OTHERS PRESENT: Thomas L. Woodruff, General Counsel Julio Lara, RWOCB Don Hughes, Supervisor Silva's Office Gary Stewart, RW QCB Gerard Thibeault, RWQCB Kris Lindstrom, Consultant Brad O'Brien, US Dept. of Justice Randy Fuhrman Robert Moyer,US EPA, Region 9 Doug Korthof THomas Huetteman,US EPA, Region 9 Joey Racano Janet Hashimoto, US EPA, Region 9 Jan Vandersloot FILED JerryKlu , US EPA, Region 9 IN THE OFFICE OF THE SECRETARY g g IN Cn114 . o'AUTATInN DISTRICT (2) APPOINTMENT OF CHAIR PRO TEM OCT 2 31001 No appointment was necessary. IVY (3) PUBLIC COMMENTS Randy Fuhrman commented that the he thought the information presented in last month's Steering Committee's closed session should have been public information. He also mentioned that the Committee should consider a direct contract with John Freshman (Item 8.B.) rather than paying mark-up to ENS Resources for a subcontractor. Minutes of the Steering Committee Page 2 September 25, 2002 (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the August 28, 2002 Steering Committee meeting were approved as corrected. (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Shirley McCracken reported that Steve Anderson has volunteered to be the District representative on the Orange County Council of Governments. An attemate is still needed for this position in the event Director Anderson cannot attend a meeting. Chair McCracken also reported on the Joint Management Committee meeting yesterday. ESA has been selected to do the federal EIS and CA EIR report on the relocation project. This report is expected to be completed in December 2003. An update on the eight alternatives was provided. General Manager Blake Anderson also reported on progress of the SARI relocation project. The Corps of Engineers has established August 2003 as the drop dead date for changes to its project in the river. There is consideration being given to incorporating the proposed SARI project into the Corps'project.This will be discussed at the next PDC Committee meeting. Who would pay for the project has not yet been determined, though the Corps has previously indicated that it would pay the equivalent of the least costly alternative. Mr. Anderson reported that he is working with the general manager of SAW PA on the$3 million in past due invoices for engineering work, as well as the potential transfer of ownership of the SARI line north of SAVI Ranch. (6) REPORT OF THE GENERAL MANAGER A two-day workshop on asset management was held Monday and Tuesday. This tool will be used to integrate everything we do. A gap analysis was performed and a game plan Is being developed based on the findings in the analysis. Mr. Anderson announced that on October 10 the Orange County Infrastructure Report Card will be unveiled. It is anticipated that this report card will begin a county-wide dialogue on what do we do to correct problems that have been identified pertaining to the condition, operations and capacity of the eight studied assets. Mr. Anderson reported that he will be presenting a 35-year service award to Gary Streed at tonight's Board meeting. He also announced that Ms. Lisa Murphy, Communications Manager, has submitted her resignation effective October 18 to join a private firm In Santa Barbara. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff reported on a recent Supreme Court ruling that limits invocations at public meetings to non-sectarian references only. He will be preparing an opinion memo for the Directors on this matter. Minutes of the Steering Committee Page 3 September 25, 2002 (8) DISCUSSION ITEMS(Items A-F) A. NPDES Permit Application Issues—Information Only Bob Ghirelli, Director of Technical Services, summarized progress to date. Negotiations are underway with the regulators. The regulators are visiting the District today so that staff can give them an appreciation of all of our efforts and to understand all of our challenges in moving to secondary treatment standards. B. Additional Information re ENS Resources consulting services for Washington representation Mr. Anderson presented additional information on the services to be provided by ENS Resources. This firm has been representing the District's interests in Washington for the last four years. The additional scope will cover services to assure that regulatory fines are not raised as we move forward towards secondary standards by possibly amending the language of the Clean Water Act and to continue to work on securing funding or grants to offset some of our costs for moving to secondary standards. There was a discussion about contracting with John Freshman directly. Mr.Anderson pointed out that there is no subcontractor markup in ENS Resources' proposal, and that by working through ENS Resources we can be assured that the work is a coordinated effort and that there would be only one point of contact. The Steering Committee did not oppose increasing the contract amount with ENS Resources for the additional work. C. Consider support for Proposition 50, the Clean Water and Coastal Protection Bond on the November 5 ballot Mr.Anderson provided an overview of the terms and conditions of Proposition 50,which targets a wide-range of issues of interest to the District. After discussion,the Steering Committee decided not to take a position on this proposition. D. Consider Joint Exercise of Power Agreement(Draft 33)for Groundwater Replenishment System,Job No.J-36 Mr.Anderson reported that Draft 33 was endorsed by the Joint Coordinating Committee on Monday, September 24, and will now go through both agencies'committee and board approval process. There are a couple of changes that are being made because of the time it has taken to finalize the agreement so Draft 35 will be the document presented for final approval. Cost estimates and completion schedules are also be updated.The design is at about 60%and the current project cost estimate is$427 million,some of which will be offset by grants. Time for project completion is scheduled for fall 2007. Director Patterson indicated that the Board needs to have the answers to the questions he posed in his letter to the JCC, including why the 21 percent cost increase. It is his opinion that the Directors are not receiving enough Information and has asked that the weekly reports be expanded to more fully explain what is happening. Mr.Anderson reported that he Is having regular meetings with Paul Brown (CDM) and Virginia Grebbien, OCWD general manager,to answer the questions raised by Director Patterson. Minutes of the Steering Committee Page 4 September 25, 2002 E. The Agenda Items scheduled to be reviewed by the Board's working committees in October were reviewed. Director McGuigan reported that she would not be attending the next OMTS Committee meeting. F. There were no questions on the agenda items scheduled to be presented to the Board at tonight's meeting. (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, October 23, 2002 at 5 p.m. The next Board Meeting is scheduled for Wednesday, October 23,2002 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:05 p.m. in Closed Session, pursuant to Government Code Sections 54957.6 and 54956.9(b)(1),to discuss labor negotiations and potential litigation relating to the District's discharge pursuant to its NPDES Permit. Confidential 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 6:57 p.m., the Committee reconvened in regular session. Minutes of the Steering Committee Page 5 September 25, 2002 (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:57 p.m. Submitted by:p/—+ Tappan (Steering Committee Secretary Q.'�'A9 NeleC/�eWeaM1q Cwnmhln101lSMbD130t SCMNNII.tee 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, September 25, 2002, was duly posted for public inspection in the main lobby of the District's offices on Thursday, September 19, 2002. IN WITNESS WHEREOF, I have hereunto set/my hand this 25th day of September, 2002. Penny Kyle, Secretary of the Boa q ofof Direr Orange County Sanitation District Posted: September 19 Z2002, p.m. By: (/v( ignature wveocVmwmnnVwWq.xn 6 ORANGE COUNTY SANITATION DISTRICT phone: (714)952-2411 fee: 1714)962Z356 wosercced.com m.11lnd address: PO. Box 8127 Fountain Vane,.GA NOTICE OF MEETING 92728-8127 OF THE across address: STEERING COMMITTEE 19acr Ellis Avenue Fcuntein Volley,GA 92798-7015 ORANGE COUNTY SANITATION DISTRICT Member Agenda. • WEDNESDAY, SEPTEMBER 25, 2002 - 5 P.M. Cities Arctic. Erne DISTRICT'S ADMINISTRATIVE OFFICE Buena Perk)'press 10844 ELLIS AVENUE Fountain Valley F FOUNTAIN VALLEY, CALIFORNIA 92708 Fullerton Garden Grove Huntington Beech Irvine La Habra e Pelme ao Alamhoa A regular meeting of the Steering Committee of the Board of Directors of Newport Beech G Orange County Sanitation District will be held at the above location, date and t.". Placentia time. Santa Seel Beach $anion Nsdn Ville Park >awa unee Casualty of orange Itself." Districts Caere Mass Midway Gty Water Districts Irvine Ranch To maintain world-class leadership in wastewater and water resource management. STEERING COMMITTEE AND BOARD MEETING DATES FOR THE NEXT TWELVE MONTHS 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 Wednesday, May 28, 2003 Wednesday, June 25, 2003 Wednesday, July 16, 2003' Wednesday, August 27, 2003 Wednesday, September 24, 2003 Wednesday, October 22, 2003 Wednesday, November 19, 2003' Wednesday, December 17, 2003' 'Tentatively rescheduled from regular fourth Wednesday. STEERING COMMITTEE (1) Roll Call: Meeting Date: September 25, 2002 Meeting Time: 5 p.m. Meeting Adjourned: Committee Members Shirley McCracken, Board Chair Steve Anderson, Board Vice Chair Russell Patterson, Chair, PDC Committee Pat McGuigan, Chair, OMITS Committee Brian Brady, Chair, FAHR Committee Jim Silva, Supervisor Norm Eckenrode, Past Board Chair 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............ Use Murphy, Communications Manager........................... Jean Tappan, Secretary.................................................... c: Lenora Crane AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, SEPTEMBER 25, 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 for public inspection in the office of the Board Secretary. In the event any matter not listed on this agenda is proposed to be submitted to the Steering Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b)as an emergency item or that there is a need to take immediate action which need came to the attention of the 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 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 three 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). -2- September 25, 2002 Agenda (4) APPROVE MINUTES OF PREVIOUS MEETING Approve draft minutes of the August 28, 2002 Steering Committee meeting. (5) REPORT OF COMMITTEE CHAIR (6) REPORT OF GENERAL MANAGER A. The October 10 Orange County Infrastructure Report Card (7) REPORT OF GENERAL COUNSEL (8) DISCUSSION ITEMS (Items A-E) A. NPDES Permit Application Issues—Information Only (Bob Ghirelli) B. Additional Information re ENS Resources Consulting Services for Washington representation (Blake Anderson) C. Consider support for Proposition 50, the Clean Water and Coastal Protection Bond on the November 5 ballot (Blake Anderson) D. Consider Joint Exercise of Powers Agreement (Draft 33) for Groundwater Replenishment System, Job No.J-36 (Blake Anderson) E. Review Agenda Items scheduled to be presented to Committees in October (Information item only) F. Review and consideration of Agenda Items for Board of Directors Meeting of September 25, 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 The next Steering Committee Meeting is scheduled for 5 p.m., Wednesday, October 23,2002. The next Board Meeting is scheduled for 7 p.m., Wednesday, October 23, 2002. r -3- September 25, 2002 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. Confer with District's Labor Negotiators (Human Resources Representative and General Manager) re salaries, benefits,terms and conditions of employment for At-will Contracts with Executive Management Team (Government Code Section 54957.6) B. Confer with General Counsel and Representatives of Regulatory Agencies concerning one (1) matter, which, in the opinion of Counsel based upon existing facts, could lead to potential litigation relating to the District's discharge pursuant to its NPDES Permit. (California Government Code Section 54956.9(b)(1) B. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session. (14) ADJOURNMENT It G%WPDr.S DANSMMING COMMIR7Ee EPD9 AGENDAWG 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: Shirley McCracken (714)765-6247(Anaheim City Hall) Committee Staff Contact: Blake Anderson (714)593-7110 General Counsel: Thomas L.Woodruff (714)564-2605 Secretary: Jean Tappan (714)593-7101 (714)962-0356(Fax) E-mail: ItaDDan(�OCSd.COm sl DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, August 28, 2002 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, August 28, 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 Shirley McCracken, Chair Don Hughes Steve Anderson, Vice Chair Ryal Wheeler Pat McGuigan, Chairman, OMTS Committee Scott Baugh Russell Patterson, Chairman, PDC Committee Jan Vandersloot Brian Brady, Chairman, FAHR Committee Joey Racano Jim Silva, County Supervisor Larry Porter Randy Fuhrman Directors Absent: Norm Eckenrode, Past Board Chair STAFF PRESENT: Gary Streed,Acting General Manager and Director of Finance Bob Ghirelli, Director of Technical Services David Ludwin, Director of Engineering Bob Ooten, Director of Operations and Maintenance Lisa Murphy, Communications Manager Jim Colston, Sr. Regulatory Specialist Sonja Wassgren, Public Information Specialist Jean Tappan, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS Dr.Jan Vandersloot thanked the Steering Committee and the Board for their July 17 decision. He asked that the public be kept apprised of the 30:30 Committee actions and that they be allowed to be involved. Larry Porter asked that the Steering Committee direct staff and the general manager to notify The Register that the problem is not just bacteria. Randy Fuhrman suggested that the mission statement be revised to include increasing wastewater reclamation. Joey Racano said that the District should not be doing its own studies because of the perception of Impropriety. He also said that we should be working on eliminating endocrine disruptors. Minutes of the Steering Committee Page 2 D August 28, 2002 (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the June 26, 2002 Steering Committee meeting were approved as drafted. (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Shirley McCracken reported that Steve Anderson, Brian Brady, Norm Eckenrode and Jim Silva attended the CASA conference in Monterey. They commented that the meetings were very informative. Chair McCracken reported that the GW RS JPA with the Orange County Water District appears to be moving forward and that agreement in principle has been reached. The schedule is to release the draft agreement on September 12 and the JCC will review it at its September 16 meeting. This Steering Committee will review it on September 25 and the District's standing committees and the Board will consider it at their October meetings. OCWD will also move it through their approval process at the same time. Chair McCracken recognized the contributions of former Chairs Jan Debay and Norm Eckenrode. Chair McCracken reported that Gary Streed is acting General Manager while Blake Anderson is on vacation. Mr. Anderson will return September 16. (6) REPORT OF THE GENERAL MANAGER A. Update on FOG Management Issues Bob Ghirelli reported that the County FOG (Fats, Oils, Grease) ordinance is being developed to deal with grease from restaurants. This ordinance is the result of an Orange County Grand Jury investigation. At this time the ordinance is only applicable to restaurants in the unincorporated area of Orange County. It will require that new restaurants have grease interrupters installed and that the inspectors from the Health Care Agency review the paperwork to ensure proper recordkeeping is being done. The ordinance will not have much of an impact on the Sanitation District, but we are funding in part a study that will result in a list of best management practices and best applied technology available. We have offered to field test some of the recommended equipment. The Committee members questioned Supervisor Silva about the possibility of contracting with the County Health Care Agency to have them perform the same type of oversight for the cities, as each city will be required to have a FOG management plan as well. Supervisor Silva indicated that the County should be the lead agency and would require a revenue stream to support the program. The role of the Sanitation District has yet to be determined. B. Grantsmanship: A DC Initiative Mr. Ghirelli also provided a briefing on the proposed plan to secure federal funding for secondary treatment facilities. In the past, there have been federal construction grants and special legislation to assist with the funding. However, in order to take advantage of these programs,we need to mount a concerted effort in Washington, working through our representative, ENS. A proposal has been received from ENS for short-tens services to generate support with the legislators and their staff members, as well as support from the various associations. Questions and discussion followed by the directors, mostly expressing concern about the viability of undertaking these Minutes of the Steering Committee Page 3 I August28, 2002 efforts at this time of the year when Congress is pretty much in recess and the legislators are not in Washington. After discussion, Chair McCracken asked that staff share the directors concerns with the general manager and bring the issue back to the committee with more detailed information on what services will be provided for long- term efforts. At that time the Committee will decide whether to proceed with a second phase. C. Update on Ocean Permit Issues This discussion was moved to Closed Session. Gary Streed reported that the FAHR Committee meeting had been changed to September 18 to avoid any conflict with September 11 memorial events. The Employees Activity Committee, on behalf of the employees and at their own expense, will install a large flag pole and plaque at the front entrance at Plant 1 and a similar plaque will be installed near the flag pole at Plant 2. A short dedication ceremony will be held on September 11. (7) REPORT OF GENERAL COUNSEL General Counsel Woodruff announced a need for a closed session, pursuant to Government Code Section 54956.9(b)(1), has arisen since the publishing of the Agenda. The item was agendized for open session. The closed session is necessary and will discuss possible litigation in view of the District being advised earlier this date of a petition for adjudicatory hearing being filed by legal counsel for the Natural Resources Defense Fund,with the State of California, Water Resources Control Board. It was moved, seconded and approved to move Item 8.B. to closed session. Mr. Woodruff also described several changes that are being considered to Resolution No. OCSD 01-23, Establishing Rules of Procedure for the Conduct of Business of the District. These are minor clean-up items providing more definition on committee assignments, time limits for speaking, and conference and meeting attendance. After discussion, it was agreed that the only change was related to Director's assignments to the OMTS Committee. The revised resolution will be submitted to the Steering Committee and the Board in December. The Chair ordered that the closed session be taken out of order at this time. (13) CLOSED SESSION The Committee convened at 5:46 p.m. In Closed Session, pursuant to Section 54956.9(b)(1), to discuss possible legislation. 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. The Committee reported that it directed General Counsel and staff to monitor the petition proceedings at the SWRCB and to represent and defend the District's Interests. At 6:16 p.m., the Committee reconvened in regular session. Minutes of the Steering Committee Page 4 August 28, 2002 (8) DISCUSSION ITEMS (Items A-D) A. Consider need for Ad Hoc Committee re Urban Runoff meeting in September Bob Ghirelli updated the committee on some of the activities that have taken place since the last meeting of the Ad Hoc Committee in February. The Committee thought that it was time for another meeting on September 26. Director Don Bankhead has been appointed chair of that committee. B. Update on 30:30 Action Plan (NPDES Permit Renewal) Bob Ghirelli and Jim Colston provided an update on staff activities since July 17 and described the permit renewal options that will be discussed with EPA and the Regional Water Quality Control Board in San Francisco tomorrow, September 29. The draft mission statement was reviewed and the Committee asked that a statement on water reclamation be included. Mr. Colston provided additional information on actions taken by the California Senate's Environmental Quality Committee on AS 1969. This bill was designed to grant an exemption to the District for mandatory minimum penalties during the transition period to secondary treatment. Monthly progress updates will be provided to the Steering Committee and the Board concerning the permit renewal. Bob Ooten reported on the results of disinfection and the increase In secondary treatment that has been brought on line. A monthly update report will be provided to the Steering Committee and the Board on these items. C. The Agenda Items scheduled to be reviewed by the Board's working committees in September were reviewed. D. The agenda items scheduled to be presented to the Board at tonight's meeting were reviewed. (9) OTHER BUSINESS,COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANV 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. Minutes of the Steering Committee Page 5 i August 28, 2002 (12) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, September 25, 2002 at 5 p.m. The next Board Meeting is scheduled for Wednesday, September25, 2002 at 7 p.m. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:55 p.m. Su miffed by: n Tappan CZteering Committee Secretary o:+„y..wevymewwnro�us.w4ww�eoz ma sc nrr,ueseoc STEERING COMMITTEE Meeting Date TO Bd.of Dir. 9-25-02 AGENDA REPORT IItgJ umber Item Number Orange County Sanitation District 8 FROM: Robert P. Ghirelli, Director of Technical Services Originator: James Colston, Senior Regulatory Specialist SUBJECT: Status of NPDES Permit Renewal and Negotiation Process GENERAL MANAGER'S RECOMMENDATION Information Only SUMMARY On August 28, 2002, staff provided the Steering Committee with an explanation of the options potentially available to the District as it pursues renewal of the ocean discharge permit (NPDES permit). Since that time, staff met with representatives of the United States Environmental Protection Agency and the California Regional Water Quality Control Board to discuss these options. On September 25, 2002, staff has scheduled a tour with these regulators to explain the District's capital improvement program and the schedule for construction of new facilities, including secondary treatment at the District. OCSD staff has invited the regulatory agency representative to participate in this meeting to update the committee on the permit negotiation process. PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ 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 N/A ALTERNATIVES N/A Gft"Aa\aganda SleeMp Un,MUeeWM0PW2502 Slane of NPDES Pamt Rene"M Nnoiatian Putt dae Rmisea: WIM i.p Page 1 CEQA FINDINGS N/A ATTACHMENTS N/A G:1x,fta goMato� WCumftle MepW9!A Ms NPDES Pe tPaievNv Nepu Ww Pam,. ae„s W"=(.) Page 2 STEERING COMMITTEE Meetlng Date To Bd.or Dir. 09/25/02 `t AGENDA REPORT Wean Number Item Number Orange County Sanitation District X FROM: Blake P. Anderson, General Manager Originator: Jean Tappan, Executive Assistant SUBJECT: Washington, D.C. Representation GENERAL MANAGER'S RECOMMENDATION Confirm General Manager's recommendation to contract with ENS Resources to provide consulting legislative services for securing grant funding and other federal representation at the retainer rate of$15,000 per month plus expenses for a four-month period for the remaining term of the congressional session, for a total of$65,000 including anticipated expenses. The agreement may be extended for an additional eight months by mutual agreement. SUMMARY At the August Steering Committee Meeting the directors asked for more information about the scope of services for Washington representation by Eric Sapirstein. In response, attached is the proposed scope of services and budget for the proposed contract with ENS Resources. ENS proposes to subcontract with John Freshman Associates to assist in the effort. A copy of Mr. Freshman's resume is attached. He is the lobbyist who obtained special legislation that provided grant funding to both the City of Los Angeles and LACSD for their treatment plant upgrades. The final attachment, prepared in response to questions about the timing of various activities, provides a schedule and outline of deliverables for the contract. PROJECT/CONTRACT COST SUMMARY The proposal is for a retainer fee of$15,000 per month plus expenses for a four-month period for the remaining term of the congressional session which ends on December 31, 2002, for a total of$65,000 including anticipated expenses. The agreement may be extended for an additional eight months by mutual agreement. BUDGETIMPACT ❑ This item has been budgeted. (tine item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) 0:\WftN panEetWn00.11..VZSpW92502 ENS R.m .n C.I.t Al.d.R"I.tl n«w W0SS Pagel ADDITIONAL INFORMATION ;. NA ALTERNATIVES NA CEGA FINDINGS NA ATTACHMENTS 1. OCSD Federal Water Quality Policy Initiative, Schedule and Deliverables September— December 2002 2. Draft Scope of Services for Washington Representation submitted by ENS Resources, dated August 15, 2002 3. John D. Freshman Resume p:Nry.MaYyenOo4Steennp ComNW.WN S,W92502 ENS R.Uo .a Can.AWd.Re'O.. Ae ..d. MOSS Page 2 OCSD Federal Water Quality Policy Initiative Schedule and Deliverables September— December 2002 OCSD is seeking federal support for permits, planning, design and construction assistance for the District's water quality treatment upgrade. As part of this effort the District is planning to augment its Washington, D.C., representation through the services of ENS Resources, Inc. (Eric Sapirstein) and John Freshman Associates. Between September and December 2002 the consulting team will work with staff to undertake a series of steps aimed at accomplishing the District's goals in this area. Short Term Steps (September-November 2002): 1. Review permit transition legislative language and revise to address legislative need (Colston/Freshman) 2. Identify key stakeholders (local, state and national) with whom to work collegially on permit transition language (Colston/Sapirstein) 3. Meet with Representatives Rohrabacher and Cox to review legislative language and follow-up (Sapirstein/Freshman) 4. Meet with Senator Feinstein to review legislative language (Sapirstein/Fresh man) 5. Meet with Committee on Appropriations to review legislative fix (Freshman) 6. Meet with senior EPA officials (HQ and Region) to review progress in developing consent decree (Ghirelli/Colston/Freshman/Sapirstein) 7. Convene weekly conference calls with District officials and legislative advocates to review project status and identify action items (All) 8. Work with District staff to ensure appropriate background information, fact sheets, white papers are developed in support of legislative initiative (All) 9. Maintain effort to secure funding assistance for disinfection/microfiltration demonstration program as part of EPA spending bill in FY 03. Medium Term Steps (October-December 2002): 1. Develop legislative package of amendments to secure authorization for a "Beach and Coastal Water Quality Improvement Act" and legislative strategy for 108th Congress, including federal assistance for secondary treatment (All) 2. Brief key local officials (e.g., Board of Directors) on proposed legislation (G hi rel IUColston/Freshman/Sapi rstein) 3. Meet with District congressional delegation to review proposed legislative initiative (Ghirelli/Colston/Freshman/Sapirstein) 4. Meet with key stakeholders to secure support for legislative initiative (All) 5. Arrange formal press event unveiling bill introduction with key Delegation Members (GhirellVFreshman/Sapirstein) 6. Convene meeting at District offices to review legislative strategy and finalize (All) t TY DRAFT DRAFT DRAFT SCOPE OF SERVICES FOR WASHINGTON REPRESENTATION ON BEHALF OF THE ORANGE COUNTY SANITATION DISTRICT ORANGE COUNTY, CALIFORNIA SUBMITTED BY ENS RESOURCES, INC. August 15,2002 ti I. INTRODUCTION ENS Resources, Inc. (ENS)and John Freshman Associates (Consultants)propose to provide Washington representation services to the Orange County Sanitation District (District). This effort will be conducted in support of the District's priority to secure permits,planning, design and construction assistance for the District's water quality treatment upgrade (Project)related to efforts to improve coastal water quality improvement and to comply with Clean Water Act mandates. Consultants will maintain and expand the District's congressional and regulatory network with an emphasis on liaison with its congressional delegation, appropriate congressional committees and federal agencies with jurisdiction over environment, public health, and natural resource needs affecting the District's objectives. The Consultants understand that the District's federal priorities require Consultants' involvement to enhance existing support of the Project, leverage existing and future federal policies in support the Project,and facilitate federal agency approvals of the Project. These goals may include activities such as: • Securing a federal authorization to support the engineering and construction of treatment needs and/or individual legislative initiatives affecting project financing; • Securing federal assistance to support Project construction through grants, loans or other financial mechanisms; • Ensuring that any legislation pending before Congress does not adversely affect the District's priorities;and • Assisting in the development and implementation of strategies related to project development. In the course of conducting these activities,Consultants would provide periodic updates on legislative and regulatory developments that may have a direct or indirect effect on the operation of the District's wastewater treatment facilities. 11. SCOPE OF SERVICES In the course of conducting the identified services, we will work with the District's designee. Our services will focus on three areas dedicated to objectives of: (1)generating political support and(2) identifying and securing federal assistance for the Project. These areas are: • Legislative Liaison and Representation • Executive Branch Liaison and Representation l • Washington-based Association Liaison 2 A. Legislative Liaison and Representation The Consultants enjoy a strong network of relationships with authorizing and appropriations committee members and their staff and the California congressional delegations. This experience and expertise is especially strong within the State of California. We have worked with the California delegation representing a variety of water and wastewater operators needs. Our activities include the development and implementation of strategies to authorize and secure funding of water supply and wastewater treatment facility needs. Our proven track record of successes is attributable to the process we employ. This process is outlined below. 1. Review Project goals and objectives and work with the District to identify legislative and program opportunities to secure federal assistance; 2. Develop with the District, a legislative strategy to achieve the goals and objectives of promoting the Project including an identification of the roles,responsibilities and timeline for actions; 3. Maintain and expand congressional liaison on behalf of the District with emphasis on infrastructure improvement needs focusing on the District's congressional delegation and key congressional committee leadership including the House Committees on Resources,Transportation and Infrastructure, Appropriations and Senate Committees on Energy and Natural Resources,Environment and Public Works and Appropriations; 4. Monitor status of legislative proposals (authorizations and appropriations)of interest to the District and provide appropriate updates; including email alerts and analyses of legislative initiatives; 5. Draft legislative communications, report language,testimony, and other appropriate materials for the District's review, approval and use with Congress; 6. Assist the District to develop issue papers,briefing materials, and talking points for use in congressional meetings; 7. Arrange and coordinate legislative meetings in Washington or in California with appropriate Members and staff with responsibility over water project authorizations and funding; and 8. Provide periodic written and oral reports detailing matters of interest that may affect attaining the District's goals. B. Executive Branch Liaison and Representation A key element of any federal initiative to secure support for a project involves working with appropriate federal agencies that must implement policies 3 affecting a project. For the District, this could include permit mandates, solicitations for program assistance or budgetary priorities. In order to ensure that the District can leverage all potential opportunities and to avoid unnecessary delays, a strategy to work with appropriate federal agencies is important to facilitate the commitment of federal assistance as well as to secure applicable federal approvals. This activity may include federal departments and agencies such as the U.S.Environmental Protection Agency, and Corps of Engineers. A number of activities would be implemented to facilitate a solid working relationship with these organizations. I. Develop for the District's review and approval a strategy to address regulatory priorities as they relate to the Project; 2. Analyze and prepare reports on Executive Branch initiatives, proposed rulemakings, and budgets that may affect the Project; 3. Monitor federal agencies' activities to maximize opportunities to include Project in agency budgets or related initiatives; 4. Provide support to District in the drafting of appropriate communications to federal agencies' on permit-related matters and/or rulemakings that may affect the Project or permit needs; and 5. Arrange and coordinate meetings between the District's officials and relevant senior federal agency officials to address policy issues or obligation of secured assistance. C. Washington-based Association liaison ENS will maintain its contact with key trade associations based in Washington. This will be supplemented by our working relationships with individual advocates representing water and wastewater District. We will work with the Washington Office of the Governor of California. This will provide the District with timely knowledge of the positions and needs of these organizations and the impact on the District's goals and objectives. Our liaison will include such groups as the Association of Metropolitan Sewerage District,California Association of Sanitation District,Natural Resources Defense Council, and other organizations as necessary. Among our activities, we will: I. Attend and participate in association meetings to review legislative and regulatory agendas for impact on District's goals and objectives; 2. Work to secure letters of support for the District's priorities; 3. Identify opportunities for the District to participate in working with groups and other forums that may enhance the District's role in the policymaking process. 4 III. BUDGET Consultants propose to conduct their representation of the District's legislative and regulatory agenda over a four month period for the remaining term of the congressional session. The District and Consultants may extend this agreement for an additional eight months by mutual agreement. Expenses for direct costs would be limited to an amount not to exceed$250 on any given month. Inter-city travel and related expenses would be an expense in addition to our estimated monthly expense. In any case where such travel is made, the District's approval would be required prior to incurring such costs. A. Professional Services A retainer of$15,000.00 per month would be charged for services as described in Section H. This retainer would cover all time expended by the Consultants in connection with the scope of services. B. Expenses As noted, we will endeavor to limit monthly expenses. For budgetary purposes the following table identifies anticipated expenses. 5 BUDGET ACTIVITY EXPENSE Telecommunications $ 500.00 Local Couriers 300.00 Air Express 250.00 Reproduction 550.00 Local Transportation (Metro/Taxi) 400.00 Out-of-Town Travel* 2,500.00 Miscellaneous 500.00 Subtotal Expense 5,000.00 Subtotal Retainer 60,000.00 CONTRACT TOTAL $65,000.00 *Out-of-Town Travel incurred only with authorization from District W. TERMS OF AGREEMENT Consultants and DISTRICT agree to the following terms: A. The term of this agreement shall be September 1, 2002 through December 31,2002. Either party may terminate this agreement provided written notice of termination is provided thirty days prior to such termination. In the event that such agreement is terminated, District shall reimburse Consultants for all reasonable costs incurred prior to the date of termination. Such costs shall be reimbursed within thirty days of the date of termination. B. Consultants will provide their best efforts,working with the District, to support identified project priorities. C. Consultants designate Eric Sapirstein as the lead official for management of this agreement. D. The District designates the General Manager or his designee as the primary contact for Consultants. E. The District agrees to pay ENS a monthly retainer as described in this agreement. They further agree to reimburse ENS for expenses consistent with the budget. Such retainer will be payable no later than the 15`s day of the month for which such services will be provided. Expenses will be billed on a monthly basis and will be due within thirty days of receipt. 6 i• F. Consultants will register as the Washington representative and comply with any additional requirements imposed on such registrant as they occur. If you agree with the terms of this agreement,please complete and sign below. Return one executed agreement to our office. The second copy is for your file. If you have any questions, please give me a call. Sincerely, ACCEPTED BY: TITLE: DATE: 7 John Freshman Associates, Inc. 1050 Thomas Jefferson Street,Fifth Floor Telephone(202)965-2009 Washington,D.C. 20007-3877 Facsimile (202)965-2008 JOHN D. FRESHMAN EXPERIENCE: President:John Freshman Associates, Inc. (November 1991 -Present). Supervises and directs all aspects of a government relations consulting firm specializing in services to municipal governments and corporations. Provides representation,analysis,and strategic advice on federal legislation and regulations including appropriations and grants,as well as the Clean Water Act, the Endangered Species Act, the Resource Conservation and Recovery Act, the National Environmental Policy Act, federal reclamation law and other federal legislative proposals and regulations. Clients represented include large California municipal utility districts and cities,a major Texas wastewater treatment district, and Fortune 500 companies. Represents California water users and other California utilities directly before Congress and the federal agencies on all federal legislative and regulatory proposals affecting them including flood control,reclamation reform,Central Valley Project reform,water allocation,water pollution,Bureau of Reclamation contracting issues, fish and wildlife proposals, pensions, and emergency drought relief issues. Founding Principal & Executive Vice President: Jellinek,Schwartz, Connolly & Freshman, Inc. (March 1981 -November 1991). Supervised substantive and management activities of a firm that specializes in legislative and regulatory policy,strategic analysis,and legislative and regulatory advocacy. Provided specialized representation and analysis on legislation, regulations, and permits, and provided background materials,issue papers,and advocacy briefs to clients. Represented clients directly before legislative and regulatory bodies. Clients represented included state and local governments, large domestic corporations, and several large West Coast water and sanitation utilities. Special Advisor to the Administrator: U.S.Environmental Protection Agency (November 1979- March 1981). Coordinated Agency strategy for external affairs and performed special problem-solving tasks, especially dealing with Congress directly. Issues included pesticides and toxics coordination,dredge and fill permitting issues, strategy for revisions to the Clean Air Act, and water pollution issues. Served as chief advisor to the Administrator on all issues involving external relations. Associate Director: U.S. Regulatory Council (March- November 1979). Directed all congressional, media, and interest group activities for the Council. Served as White House lobbyist for regulatory reform and related legislation. Senior Staff Member: President's Reorganization Prolect (November 1977. March 1979). Coordinated congressional strategy for emergency preparedness, natural resources, and economic development reorganization efforts. Professional Staff Member: Subcommittee on Environmental Pollution,U.S.Senate (March 1976-November 1977). Held lead staff responsibility for the 1977 Clean Water Act. Drafted speeches, Congressional Record statements, and reports for Subcommittee Chairman on water pollution, air pollution, and solid waste. Developed compromises for dredge and fill permitting and innovative alternative programs for municipal sewage treatment. Staff Assistant to Senator Edmund S. Muskie: National Commission on Water Oualitv (September 1973 -March 1976). Managed studies on construction grants program, planning program, innovative technologies program, and authored study dealing with federal, state, and local institutions involved in water pollution control. Legislative Assistant: Senator Robert T. Stafford (June 1971 -September 1973). Followed floor and committee activities for the Senator. Drafted speeches and position papers on issues. Advised Senator on environmental and other issues. Human Services Planner: Vermont State Office of Economic Opportunity, Montpelier, Vermont(July 1970 -June 1971). Researched and authored "Profile of Poverty" for the state of Vermont. Staff Assistant: Senator Richard Schweiker.U.S. Senate(September 1969-June 1970). Coordinated and reviewed all incoming and outgoing correspondence. EDUCATION: B.A.,Political Science, Middlebury College,Middlebury, Vermont, 1970 JOHN D.FRESHMAN is a strategic consultant and legislative and regulatory advocate on environmental and natural resource issues for a variety of private business and public agency clients. For two decades, Mr. Freshman has provided clients with skillful representation, analysis, and strategic advice in a complex and politically challenging field. He is an expert on national environmental policy and natural resource issues and focuses on the Clean Water Act, the Endangered Species Act, the Resource Conservation and Recovery Act,the National Environmental Policy Act, Bureau of Reclamation issues, Western Water Resources, Flood Control, and other federal legislative proposals,regulations, and permits. Mr. Freshman has also enjoyed success in securing needed appropriations for clients'environmental and water resource projects and needed changes in unfair regulations. Clients include Fortune 500 companies and municipal utilities in California, South Dakota,Missouri,Virginia, Oregon, and Texas. Mr. Freshman held key positions in Congress and the Executive branch which provided him with substantive experience and judgement on major environmental and resource issues. His work as Legislative Assistant to Senator Robert Stafford of Vermont and as Staff Assistant to Senator Edmund Muskie's National Commission.on Water Quality earned him a top staff position on the Senate Environment and Public Works Committee, where he had lead responsibility for the Clean Water Act and worked on other major environmental and resource issues. After his tenure in the Senate,Mr. Freshman worked at the Office of Management and Budget, was a lobbyist for the White House, and was selected to be Special Advisor to the Administrator of the Environmental Protection Agency (EPA), where he coordinated EPA's external strategy on high profile issues, especially those involving Congress. Mr. Freshman left the public sector in 1981 to form his own firm and in 1984, founded the environmental consulting firm of Jellinek,Schwartz, Connolly&Freshman, Inc., where he first served as Managing Partner and later as Executive Vice President in charge of the firm's legislative and regulatory practice. In 1991,Mr. Freshman left Jellinek, Schwartz, Connolly &Freshman, Inc. to again found his own company in order to provide customized lobbying and consulting services to an exclusive set of clients. Mr. Freshman is from the Washington,DC area. He was bom in 1946 and graduated from Middlebury College in Vermont in 1970. AGENDA ITEM B. C. BOARD Of TRUSTEES SOUTHERN CALIFORNIA Clatter LX-Stacy A.Paper Products T ProsleN Gamble Paper Produga Company COUNTY SUPERVISORS Non.loAn N.Flynn County of Ventura Non.Don Knobs Costly of Los Angeles r x s a a v o a A r s o County of Immperial September 6, 2002 Hon.Aen Peterson Counly ol6ern Non.BIII Pmtmas 10184 sinth Street-Suite C Counlyof San Bassani Non.lamm Sllve Rancho Cucamonga,CA 91730 Canny Orange Non.Pamm SlaterMr. Blake P. Anderson Phone(909)980-4700 County of San Otago Assistant General Manager ha(909)980-2628 Had Jim Venable County of Riverside Orange County Sanitation District AGRICULTURE SECTOR P.O. Box 8127 John W.Bomlmm,l` n W. Companies Fountain Valley, CA 92728-8127 Joh lames Chino] CmitM Farms Gerald nevidsan Dear Mr. Anderson: Sunkist Gramess.Inc. John Frisker Rivers Id.County farm Bureau The Southern California Water Committee urges Orange County Sanitation RobedL.seat Orange County farm Bureau District to endorse Proposition 50,the Clean Water and Coastal Protection O Geoffrey T.Vanden Heuvel Bond on the November 5 ballot. Proposition 50 addresses the issues Milk Producers Council Californians care most about,reducing water pollution,protecting the quality H sdc7oR of water supply, g p Non.Lyle Albesg pp y, cleaning u our beaches and coastlines, and most cRod Hemel importantly, ensuring a stable, reliable and secure water supply for our Ci James f Ful H. llake erton state's future. Non.David Couch City of Bakersfield His .Ruth D Areal.,al City off Lee ng The SCWC is convinced of the merits of Proposition 50 and believes it Han.Larry Grogan substantially advances our goals of an integrated and balanced approach City of El Centro to providing the high quality water we need to sustain our economy and Nan.Sandy E.Spite P 9 q tY Y City of San Buenaventura environment for the foreseeable future. Han.)A men S.Thalman City of Chin Hills BUSINESS SECTOR Your endorsement is vital, as the Yes on 50 campaign begins to Robert W.Bain ARTcommunicate the benefits of this measure to California voters and it RBF d W Lee Clark is our sincere hope that you will join our efforts. Independent 0ll Producers Agency Jon Pact 8e11r Proposition 50 is supported by large and diverse coalitions of local water unan1.Kelly agencies, environmentalists, business, public health officials, and OCAL Raben A.Harder community groups. Please join the Southern California Water Committee Huger 8 Stwsh n! P Martin Flown! and endorse Proposition 50. Please fill in the attached form and send it to Velley,Independent Bank the YES on Prop 50 campaign office and a copy to the SCWC. Steven A.Zopotieeny CP Nalco WATER SECTOR Thank you for considering this important request. Anne Deaths, Inland Emplm Utilities Agency C.I.John V.PoleY Very truly yours, Moulton Niguel Water 0istrict Ronald R.Gaslelem Metropolitan Water District �/✓� of Southern Water Di Andy Horne Imperial hillside District Donald Herder Joan Anderson Dym Ed lineups Municipal Water District Executive Director John McFadden Coachella Valley Water District Southern California Water Committee stood Pyle Nerd County Water Agency Bernle RAlmrson Sen Diego County Water Autherily, CHAIR EMERITUS-Her.Hallett M.Weeder EXECUTIVE DIRECTOR-loan Anderson Open, YES ON Am .w.d, CLEAN WATER AND COASTAL PROTECTION BOND OF 2002 Endorsement Form Please support the Clean Water and Coastal Protection Bond of 2002. Date Name Organization Occupation or Title Address City State Zip Phone Fax E-mail Please list me/our organization as a public supporter in your campaign materials. Please remit this endorsement form, via mail or facsimile, to the campaign office: Yes on Prop 50 - Californians for Clean Water and Coastal Protection 926 J Street, Suite 907 Sacramento, CA 95814 (916) 558-1518 facsimile Yes on Prop 50—Cali,jornians jar Clean Water and Coastal Protection ID 01245318 926 J Street, Suite 907 Sacramento, CA 95814 www.prop50yes.com I A-- PROPOSITION WATER QUALITY, SUPPLY AND SAFE DRINKING WATER PROJECTS. COASTAL WETLANDS PURCHASE AND PROTECTION. BONDS. INITIATIVE STATUTE. OFFICIAL TITLE AND SUMMARY Prepared by the Attorney Genera! WATER QUALITY, SUPPLY AND SAFE DRINKING WATER PROJECTS. COASTAL WETLANDS PURCHASE AND PROTECTION. BONDS. INITIATIVE STATUTE. •Authorizes$3,440,000,000 general obligation bonds to fund a variety of water projects, including: • Specified CALFED Bay-Delta Program projects including urban and agricultural water use efficiency projects; • Grants and loans to reduce Colorado River water use; ® • Purchasing, protecting and restoring coastal wetlands near urban areas; •Competitive grants for water management and quality improvement projects; • Development of river parkways; • Improved security for state, local and regional water systems; • Grants for desalination and drinking water disinfection. •Appropriates money from state General Fund to pay off bonds. SUMMARY OF LEGISLATIVE ANALYST'S ESTIMATE OF NET STATE AND LOCAL GOVERNMENT FISCAL IMPACT: • State cost of up to$6.9 billion over 30 years to pay off both the principal ($3.44 billion) and interest ($3.46 billion) costs on the bonds. Payments of about$230 million per year. •Reduction in local property tax revenues, ranging from a few million dollars to roughly $10 million annually, about one-half of which would be offset by state payments to schools to make up their revenue loss. •Unknown costs to state and local governments to operate or mairtrain properties or projects purchased or developed with these bond funds. ANALYSIS BY THE LEGISLATIVE ANALYST BACKGROUND • Bay-Delta Restoration. The state has also funded the Coastal Protection and Water Resources Programs. The restoration and improvement of fish and wildlife habitat in state administers a number of programs to acquire and the San Francisco Bay/Sacramento-San Joaquin Delta protect coastal wetlands and watersheds, conserve and Estuary(the Bay-Delta).Additionally,the state has funded protect water resources, and develop and improve the water quality and supply projects in the Bay-Delta region reliability of water supplies. The state also provides grants which supplies a substantial portion of the water used in and loans to local agencies and nonprofit organizations for the state for domestic, industrial, agricultural, and similar purposes.These programs are for a variety of specific environmental purposes. These funds have been provided purposes, including: through the CALFED Bay-Delm Program which is a joint • Coastal Wetlands and Watersheds. The state has state and federal effort to better manage water resources in provided funds to acquire and restore coastal wetlands and this region. watersheds. • Other Water Quality and Water Supply Projects. The • Safe Drinking Water. The state has provided funds for stare has also provided funds for various other projects loans and giants to public water systems for facility throughout the state that improve water quality and/or improvements to meet safe drinking water standards. supply. For example, the state has provided loans and 024+ Tab and summary/Analysis , PROP WATER QUALITY, SUPPLY AND SAFE DRINKING WATER PROJECTS. 'r COASTAL WETLANDS P BONDS.AND PROTECTION. BONDS. INITIATIVE STATUTE. 5� ANALYSIS BY THE LEGISLATIVE ANALYST (colaTa grants to local agencies for the construction and implementation of wastewater treatment, water recycling, PROPosmON 50 and water conservation projects and facilities. Also, the USE.of BoND FuNDs state has provided funds to line canals to conserve Colorado River water. do Whom) Amount Funding for Coastal Protection and Water Resources consstel Protection saso Programs. Funding for these programs has come from wetlands acquisition,protection,and restoration 750 various sources, including the state General Fund, federal ' Watershed protection coo funds,and general obligation bonds.Since 1990,voters have CALFED gay.DAte Program sass approved about $3 billion in bonds that are primarily for • water use emrienn and conservation so water-related purposes. It is estimated that about$1.9 billion ' water supply cha lM aso • Ecosystem restoration aao of the bonds authorized by these previous bond acts will have •watershed protection so been spent or committed ro specific projects as of June 2002, . water comparisons 75 leaving a balance of about$1.1 billion for future projecu. In Delta let-respiration 70 addition, in March 2002, voters approved a $2.6 billion W'i1er storage planning and studies so resources bond measure. A majority of the funds from that Interpreted Regional Water Management ab4o bond are for park-relared projects, although some funds are Various water supyly,Pollution reduction,water treatment,food available for water conservation and water quality projects. management,and wetlands resummon prooectz goo Q tYP ] . Land and water acyulsRlons to lmprov /n tat water quality, PROPOSAL water supply reliability,and fah and wildli!habitat 140 This measure allows the state to sell $3.44 billion in safe Drinking Water E4ag general obligation bonds for various water-related programs. • small community drinki gwater systemgrader,contaminant removal and treatment.waerquzliry mmuodng,drkingwatersouaeprdectren Figure 1 summarizes the purposes for which the bond money clean water and Water Quality ggyo would be available for expenditure by various state agencies , Water pollution preverlioa water regdmg, are,quality improvements ,o and for loans and grace; ro local agencies and nonprofit . River parkway project: 100 associations.It shows that more than half of the funds would - Coastal nonpolvt source pollution control t be allocated to two purposes—coastal protection and the take Tahoe water quality Improvements 40 CALFED Bay-Delta Program. • Landi ndwaateracgquisitonsto protect water quality in the Sierra gmp go FISCAL EFFECTS Desalmatlonand Ma ,T unentPOjs $aoo Bond Costs. The cost of these bonds would depend on - Desafnationpmjmts,treatment/removalofspecinedwntaminanpi, their interest rates and the time period over which they are drinking water disinfming projects repaid. If the bonds were sold at an interest rate of 5.25 cobndo River Management S . percent (the current rate for this type of bond) and repaid -Ecosystem restoration 50 over 30 years, the cost would be about$6.9 billion to pay off •Carol lining20 both the principal ($3.44 billion) and interest ($3.46 Water secudry $50 billion).The average payment would be about$230 million •protection of drinking water systems from terrodet attacks and other deliberate acts ofmatruction or degradation per year. However, total costs to the state will be somewhat less. This is because the measure requires that loans made for coastal nonpoint source pollution control (up to $100 taxation due to acquisitions by governments and nonprofit million) be repaid to the General Fund. The repayment of organizations, local governments would receive reduced these loans Could reduce the General Fund costs by up to property tax revenues. We estimate these reduced property $100 million (not including interest payments) over the life tax revenues Would range from a few million dollars to of the bonds. roughly$10 million annually. Because existing law requires Properly Tax-Related Impacts. The measure provides the state to make up for any property tax losses experienced funds for land acquisition by governments and nonprofit by schools,we estimate about one-half of any losses resulting organizations, for various purposes including coastal from this change would be offset by the state. protection.Under state law, property owned by government Operation! Costs. State and local governments may entities, and by nonprofit organizations under specified incur additional costs to operate or maintain a property or conditions, is exempt from property taxation. To the extent project that is purchased or developed with the bond funds. that this measure results in property being exempted from The amount of these additional Costs is unknown. For text of Proposition 50 see page 75. Analysis *2 5* PROP WATER QUALITY, SUPPLY AND SAFE DRINKING WATER PROJECTS. T 50 1 COASTAL WETLANDS PURCHASE AND PROTECTION. BONDS. INITIATIVE STATUTE. ARGUMENT IN FAVOR OF PROPOSITION 50 YES ON 50.PROTECT OUR DRINKING WATER SUPPLY protection and restoration of coastal wetlands vital to restoring AND COASTLINE the water quality, fisheries and wildlife of the San Francisco, Our water supply is threatened by pollution, recurring Santa Monica and San Diego bays and of the coastal waters of drought,population growth,and inadequate security the state. Proposition 50 will help overcome these threats and provide YES ON 50 WILL NOT RAISE TAXES every California family a safe, reliable supply of clean drinking Proposition 50 will use existing tax revenue where it is needed water by: now—to protect our water supply and ensure safe drinking water • Removing dangerous, cancer causing pollutants from our for all Calif smians. drinking water. YES ON 50—SUPPORTED BY LOCAL WATER • Creating new water supplies to keep up with population AGENCIES, CONSERVATION GROUPS, BUSINESS AND growth. COMMUNITY GROUPS,INCLUDING: • Keeping raw sewage and pollution out of our coastal waters • Metropolitan Water District of Southern California and cleaning up beaches and bays. • Contra Costa Water District • Protecting rivers, lakes and screams and preserving coastal • East Bay Municipal Utility District wetlands. • League for Coastal Protection • Protectingg our reservoirs m, darns, pumping stations and • Heal the Bay pipelines ham terrorist threats and intentional contemina• • Los Angeles Area Chamber of Commerce tion. • League of Women Voters of California YES ON 50 KEEPS OUR WATER FLOWING • The Nature Conservancy Califomia's population is expected to nearly double in the • Southern California Agricultural Land Foundation next forty years. Proposition 50 funds state and local water • National Wildlife Federation system improvements needed to keep up with population growth • Audubon California by providing new water supplies and supporting water • American River Conservancy, • conservation programs. • League to Save Lake Tahoe YES ON 50 KEEPS OUR WATER CLEAN • Clean Water Action Proposition 50 funds improved drinking water treatment to YES ON 50—PROTECT CALIFORNIA'S FUTURE: remove dangerous cancer causing chemicals, including arsenic, California's future depends on investment in water supply and chromium and MTBE from our drinking water. security, water quality and safe drinking water projects and on YES ON 50 KEEPS OUR WATER SAFE protecting our rivers, lakes, bays and coastal waters from Many ofCalifomia's resrnoirs,dams and pumping stations are contamination. Proposition 50 pprovides the funds that local protected by little more than a chain link fence. Proposition 50 water districts need to serve Califomia's growing population. protects local water delivery systems from terrorist tluea[s and Please join our campaiggnn to protect California s water supply intentional contamination by funding early warning systems, and coastline:unuw.prop50yes.com alarms,fences,security systems,testing equipment and upgraded communications systems. BARBARA INATSUGU,President YES ON 50 PROTECTS OUR BEACHES, BAYS AND League of Women Voters a Cahfamia COASTLINE DAN TAYLOR,Vice Presiddeennt Many of California's most beautiful beaches are unsafe for National Audubon Society swimming because of pollution and raw sewage. Proposition 50 MARGUERITE YOUNG,California Director will fix aging local sewer and storm water systems that dump Clean Water Action urban runoff into coastal waters.Proposition 50 also provides for REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 50 To say Proposition 50 creates "new water source ro keep up Proposition 50 is more about money than water. The with population growth" is an outright lie. Just read Section proponents solicited various special interests and apparently 79560 of the initiative, it strictly prohibits bond funds from traded bond monies for campaign cash. It's called quid pro quo being spent for building new dams or reservoirs. and under normal circumstances, it's illegal. However, in the To ray it "wiE not raise razes" is another lie. Proposition 50 arena of initiative politics, its not illegal. Some of the largest will cost California Taxpayers a total of$5.7 billion—that's real estate developers in California are big investors in this $227 million each year for the next 25 years.Furthermore,this scheme to extract$3.44 billion from the taxpayers. initiative does nothing to complete the California Water The principals of the San Juan Company put up$50,000 for Project sponsored by Gov. Pat Brown to meet our long range the effort at the same time they are trying to get approval to water needs. build 14,000 houses in an environmentally sensitive southern Millions of mm4eet of water Bow down the Sacramento, Orange County. through the Golden Gate, into the ocean each year. A canal is desperately needed to divert water around the Delta so it EDWARD J. (TED) COSTA,Chairman can flow down the California Aqueduct to drought stricken California Taxpayers Coalition areas Of our State. Proposition 50 does nothing to address this RICHARD AHERN,Vice President badly needed source of new water. Wow Watchers, Inc. •26* Aryum•nu IArgummu punted on ddt page are do opinions•J Ae auJ,un and Mee not km rM1eclvd fm mrnnay M coy vJficiul ggenry. PROP WATER QUALITY, SUPPLY AND SAFE DRINKING WATER PROJECTS. 4. COASTAL WETLANDS PURCHASE AND PROTECTION. BONDS. INITIATIVE STATUTE. 50 ARGUMENT AGAINST PROPOSITION 50 'J It seems like every time we have a general election,someone Gate into the ocean can be sent to drought stricken areas of our asks for a few billion dollars for safe drinking water.This time we State.$3.44 billion would substantially fund that project. are being asked to pass the largest water bond in history. A Proposition 50 does nothing to star[,or plan for Completion of whopping$5.7 billion—when you consider the principal($3.44 anX of the projects listed above. billion)and the interest($2.24 billion). Proposition 50 has been described as the "stealth bond issue." In spite of all the water bonds California taxpayers have Proponents are try in to sell it as a clean drinking water approved in the last 30 years,our Governor and Legislature have initiative.However,all California taxpayers should know it was taken no action to develop new water storage facilities. In fact, drafted by a Sacramento lobbyist for several environmental the construction of dams and reservoirs has been at a virtual groupps and the Metropolitan Water District of Southernstandstill for many years in California. CalIfomia. Most of water bond monies California voters have been Supporters then hired professional signature gatherers and approving have gone for endless studies of the problem, and to paid as much as $2.50 a signature to qualify this deceptive pander to unrealistic environmental demands. initiative for the ballot. It's time for all good taxpayers to say "no dice" to these bond What Proposition 50 really does is dole out bond funds to the schemes that do nothing to improve our long range water supply. pet pro ects of those environmental groups that paid to put it on Yes, we are fast approaching a big water shortage crisis in the ba�lot. And, you and your children will have to come up California, the likes of which we have never seen before. with$227 million each year for the next 25 years to pay for it. Proposition 50 provides virmally no money to alleviate that Remntlg a group of 30 taxpayer organizations from around crisis. the State met in Convention under the name California We need new dams on the American River at Auburn and on Taxpayer's Coalition and voted unanimously to oppose the upper San Joaquin River at Friant. $3.44 billion will build Proposition 50. both of them and provide us with a much needed new water Vote no on Proposition 50. supply. For more information wdcosta®tedmsm.com or We need to build the Sites Reservoir in Colusa County, and peoplesadvocate.org 1.800-501-8222. the Los Banos Grande Reservoir in Merced County to store an additional 6 million acre feet of new water for drought ERNIE DYNDA,President protection and to accommodate all the new construction of the United Organizations of Taxpayers lase 30 years. $3.44 billion would go a long way to build these EDWARD J.(TED)COSTA,CEO worthwhile new reservoirs. People's Advarvte All of Califomia desperately needs a diversion channel around TOM C. ROGERS,Chairman the Delta so that excess water that now flaws out the Golden Citizens Against Unfair Taxation REBUTTAL TO ARGUMENT AGAINST PROPOSITION 50 PROP 50 IS NEEDED NOW TO PROVIDE A CLEAN, • Keep our water system safe and secure by protecting against RELIABLE AND SAFE WATER SUPPLY FOR OUR terrorist threats and intentional contamination. FAMILIES AND OUR FUTURE. "Local water agencies responsible far providing Californians with We've made progress in improving water quality and sir a drinkin water agree: Prop 50 is vitally needed to provide a reliability, but there's a lot more that needs to he done now. Te fable supply of clean drinking water."—James Pretri,President Prop 50 supports vitally needed water projects critical to of the Board,Contra Costa Water District ensuring clean drinking water and a reliable water supply. "Nothing is more important than secure water supplies. Prop 50 Even the small groups opposing Prop 50 agree that OUR can help avert attacks on and contamination of our drinking water LOOMING WATER CRISIS MUST BE RESOLVED. But supply."—Lieutenant Ed Gray, President, California their approach, coming from People claiming to represent Organization of Police and Sheriffs taxpayers, would cost drastically more than Prop 50's cost- JOIN public safety groups, public health experts, water effective approach. agencies, conservation groups, businesses and community PROPOSITION 50 WILL: groups throughout California in voting YES ON 50. • Keep our drinking water clean by removing toxic substances and protecting our rivers, lakes and streams. DAN TERRY,President • Keep our tearer flowing by providing new water supplies, California Professional Firefighters improving local water systems,and supporting water effi- BARBARA INATSUGU,President ciency and conservation programs. League of Women Vown of Califomia • Protect our beaches, bays and coastline by repairing aging PHILLIP J. PACE,Chairman sewer and storm water systems. Menopoltan Water District of Southem California Aigumew p�nred on dus page are ire opinio,u of the authors and haue roc been ckcked fro acrurary by anY offend agenry. Mg"m•nU -27- Poop WATER QUALITY, SUPPLY AND SAFE DRINKING WATER PROJECTS. I 50 COASTAL WETLANDS PURCHASE AND PROTECTION. BONDS. INITIATIVE STATUTE. ARGUMENT IN FAVOR OF PROPOSITION 50 YES ON 50.PROTECT OUR DRINKING WATER SUPPLY protection and restoration of coastal wetlands vital to restoring AND COASTLINE. the water quality, fisheries and wildlife of the San Francisco, Our water supply is threatened by pollution, recurring Santa Monica and San Diego bays and of the coastal waters of drought,population growth,and inadequate security the state. Proposition 50 will help overcome these threats and provide YES ON 50 WILL NOT RAISE TAXES every California family a safe, reliable supply of clean drinking Proposition 50 will use existing tax revenue where it is needed water by: now—to protect our water supply and ensure safe drinking water • Removing dangerous, cancer Canning pollutants from our for all Californians. drinking water. YES ON 50—SUPPORTED BY LOCAL WATER • Creating new water supplies to keep up with population AGENCIES, CONSERVATION GROUPS, BUSINESS AND growth. COMMUNITY GROUPS,INCLUDING: • Keeping raw sewage and pollution out of our coastal waters • Metropolitan Water District of Southern California and cleaning up beaches and bays. • Contra Costa Water District • Protecting rivers, lakes and streams and preserving coastal • East Bay Municipal Utility District wetlands. • League for Coastal Protection • Protecting our reservoirs, dams, pumping stations and • Heal the Bay pipelines from terrorist threats and intentional contarnma- • Los Angeles Area Chamber of Commerce Lion. • League of Women Voters of California YES ON 50 KEEPS OUR WATER FLOWING • The Nature Conservancy California's population is expected to nearly double in the • Southern California Agricultural land Foundation next forty years. Proposition 50 funds state and local water • National Wildlife Federation system improvements needed to keep up with population growth • Audubon California by providing new water supplies and supporting water • American River Conservancy • conservation programs. • League to Save Lake Tahoe YES ON 50 KEEPS OUR WATER CLEAN • Clean Water Action Proposition 50 funds improved drinking water treatment to YES ON 50—PROTECT CALIFORNIA'S FUTURE: remove dangerous cancer causing chemicals, including arsenic, California's future depends on investment in water supply and chromium and MTBE from our drinking water. security, water quality and safe drinking water projects and on YES ON 50 KEEPS OUR WATER SAFE protecting our rivers, lakes, bays and coastal waters from Many ofCalifomia's reservoirs,dams andpumping staeiore are contamination. Proposition 50 provides the funds that local protected by little more than a chain link fence. Proposition 50 water districts need to serve California's growing population. protects local water delivery syscems (torn tertmise threan and Please join our campagn to protect California's water supply intentional contamination by funding early warning systems, and coastline:www.prop.)0yes.com alarms,fences,security systems,testing equipment and upgraded communications systems. BARBARA INATSUGU,President YES ON 50 PROTECTS OUR BEACHES, BAYS AND league of Women Voters of California COASTLINE DAN TAYLOR,Vice President Many of Califomia's most beautiful beaches are unsafe fm National Audubon Society swimming because of pollution and raw sewage. Proposition 50 MARGUERITE YOUNG,California Director will fix aging local sewer and storm water systems that dump Clean Water Action urban runoff into coastal waters.Proposition 50 also provides for REBUTTAL TO ARGUMENT IN FAVOR OF PROPOSITION 50 To say Proposition 50 creates "new water sources to keep up Proposition 50 is more about money than water. The with population growth" is an outright lie. Just read Section proponents solicited various special interests and apparently 79560 of the initiative, it strictly prohibits bond funds from traded bond monies for campaign cash. It's called quid pro quo being spent for building new dams or reservoirs. and under normal circumstances, it's illegal. However, in the To say it "will not Tare tares" is another lie. Proposition 50 arena of initiative politics,it's not illegal.Some of the largest will Cost California Taxpayers a total of$5.7 billion—that's real estate developers in California are big investors in this $227 million each year for the next 25 years.Furthermore,this scheme to extract$3.44 billion from the taxpayers. initiative does nothing to complete the California Water The principals of the San Juan Company put up$50,000 for Project sponsored by Gov. Pat Brown to meet our long range the effort at the same time they are trying to get approval to water needs. build 14,000 houses in an environmentally sensitive southern Millions of acre-feet of water flow down the Sacramento, Orange County. through the Golden Gate, into the ocean each year. A canal is desperately needed to divert water around the Delta so it EDWARD J. (TED)COSTA,Chairman can flow down the California Aqueduct to drought stricken California Taxpayers Coalition areas of our State. Propmition 50 does nothing to address this RICHARD AHERN,Vice President badly needed source of new water. Waste Watchers, Inc. •26. Aryumenu PROP WATER QUALITY, SUPPLY AND SAFE DRINKING WATER PROJECTS. COASTAL WETLANDS PURCHASE AND PROTECTION. BONDS. INITIATIVE STATUTE. 50 ARGUMENT AGAINST PROPOSITION 50 J It seems like every time we have a general election,someone Gate into the ocean Can be sent to drought stricken areas of our asks for a few billion dollars for safe drinking water.This time we State.$3.44 billion would substantially fund that project. are being asked in pass the largest water bond in history. A Proposition 50 does nothing to smut,or plan for completion of whopping$5.7 billion—when you consider the principal($3.44 any of the projects listed above. billion)and the interest($2.24 billion). Proposition 50 has been described as the "stealth bondissue." In spite of all the water bonds California taxpayers have Proponents are trying to sell it as a clean drinking water approved in the last 30 years,our Governor and Legislature have initiative.However,all California mxpayers should know it was taken no action to develop new water storage facilities. In fact, drafted by a Sacramento lobbyist for several environmental the construction of dams and reservoirs has been at a virtual groups and the Metropolitan Water Distrito of Southern standstill for many years in California. California. Most of water bond monies California voters have been Supporters then hired professional signature gatherers and approving have gone for endless studies of the problem, and to paid as much as $2.50 a signature to qualify this deceptive pander m unrealistic environmental demands. initiative for the ballot. It's time for all good taxpayers to say "no dke" to these bond What Proposition 50 really does is dole out bond funds to the schemes that do nothing to improve our long range water supply pet projects of those environmental groups that paid to put it on Yes, we are fast approaching a big water shortage crisis in the ballot. And, you and your children will have to Come up California, the likes of which we have never seen before. with$227 million each year for the next 25 years to pay for it. Proposition 50 provides virtually no money to alleviate that Recently, a group of 30 taxpayer organizations from around crisis. the Smte met in Convention under the name California We need new dams on the American River at Auburn and on Taxpayer's Coalition and voted unanimously to oppose the upper San Joaquin River at Friant. $3.44 billion will build Proposition 50. both of them and provide us with a much needed new water Vote no an Proposition 50. Supply. For more information tedcosta@tedcosta.rom or We need to build the Sites Reservoir in Colusa County, and peoplesadwcate.org 1.800.501.8222. the Los Banos Grande Reservoir in Merced County to store an additional 6 million acre feet of new water for drought ERNIE DYNDA,President protection and to accommodate all the new construction of the United Organizations of Taxpayers for 30 years. $3.44 billion would go a long way to build these EDWARD J. (TED)COSTA,CEO worthwhile new reservoirs. People's Advocate All of California desperately needs a diversion channel around TOM C.ROGERS,Chairman the Delta so that excess water that now flows out the Golden Citizens Against Unfair Taxation REBUTTAL TO ARGUMENT AGAINST PROPOSITION 50 PROP 50 IS NEEDED NOW TO PROVIDE A CLEAN, • Keep our water system safe and secure by protecting against RELIABLE AND SAFE WATER SUPPLY FOR OUR terrorist threats and intentional contamination. FAMILIES AND OUR FUTURE. "Loral water agencies responsible for providing Californians with We've made progress in improving water quality and safe drinking water agree: Prop 50 is virally needed to provide a reliability, but there's a lot more that needs to be done now. reliable supply of clean drinking water."—James Pretti,President Prop 50 supports vitally needed water projects critical to of the Board,Contra Costa Water District ensuring clean drinking water and a reliable water supply. "Nothing is more important than secure water supplies. Prop 50 Even the small groups opposing Prop 50 agree that OUR can help avert attacks an and contamination of our drinking water LOOMING WATER CRISIS MUST BE RESOLVED. But supply."—Lieutenant Ed Or , President, California their approach, coming from people claiming to represent Organimtion of Police and Sheriffs taxpayers, would cost drastically more than Prop 50's cost- JOIN public safety groups, public health experts, water effective approach. agencies, conservation groups, businesses and community PROPOSITION 50 WILL: groups throughout California in voting YES ON 50. • Keep our drinking water clean by removing toxic substances and protecting our rivers,lakes and streams. DAN TERRY,President • Keep our water flowing by providing new water supplies, California Professional Firefighters improving local water systems,and supporting water effi. BARBARA INATSUGU, President ciency and conservation programs. League of Women Votes of California • Protect our beaches, bays and coastline by repairing aging PHILLIP J.PACE,Chairman sewer and storm water systems. Metropolitan Water District of Southern California Argammu primed on ehb pa a are the opinions of the avehmr and Moe roe bem checked for accuracy by any o(find agenry. Arguments r,2 7 r, r CLEAN WATER AND COASTAL PROTECTION BOND OF 2002 FACT SHEET California's looming water crisis cannot be ignored. With 25 million new residents expected by 2040, California must find a way to provide reliable,clean,safe and cost effective water supplies for our people, businesses,fames and the environment.Investments in upgrading and building new infrastructure, cleaning our watersheds and major water sources,protecting and preserving key watersheds and coastal regions,and better utilizing and conserving every precious drop of existing supply must be made now. In 2000, Californians overwhelmingly passed Proposition 13, which provided new funding for a host of water supply,reliability and flood control efforts. However, it simply is not enough. The Clean Water and Coastal Protection Bond of 2002 will augment Proposition 13 efforts and provide even greater opportunities to ensure clean and reliable water supplies for the residents of this desert state. Ensures Safe, Clean Drinking Water... The Clean Water and Coastal Protection Bond of 2002 will support projects throughout the state that are designed to clean our drinking water sources,upgrading existing infrastructure and treating water to remove harmful contamination. In addition, funding is provided for new, state-of-the-art technologies for contaminant removal and desalinization programs. Protects Rivers, Lakes And Coastal Waters From Pollution... Projects funded by this bond measure will help protect our watersheds, rivers, lakes and coastal water from pollution and sewage,restoring natural resources critical for our drinking water supplies and wildlife habitat. Improves Water Supply Reliability... Significant and desperately needed funding for the CAI.FED Bay-Delta Program, California 4.4 Plan and other regional water management efforts will assist in planning new water storage or banking opportunities, facilitating water transfers,creating new water supplies, upgrading existing infrastructure and distribution systems,and capturing and better utilizing existing supplies through recycling, reclamation and conservation. Secures Water Systems... The tragic events of September 11 have illustrated the importance of ensuring the security and viability of our federal,state and local water systems, for the health of our families and entire cities.Funding will be provided to secure and safeguard the integrity of our drinking water systems and supplies from catastrophic damage or failure due to deliberate acts of destruction. Protects And Preserves Our Beaches And Coastal Regions... California's greatest natural resources include our coveted beaches and coastal wetlands. Preserving coastal watersheds and beaches, through acquisition,protection and restoration,will ensure their enjoyment for this generation and generations to come. Strengthens California's Economy... Without a reliable and cost effective supply of water,California's vibrant economy is in greatjeopardy. Investments must be made now to ensure future viability and economic growth for our families and businesses. Californians for Clean Water and Coastal Protection 926 J Street,Suite 907 Sacramento,CA 954814 PROPOSITION 50 CLEAN WATER AND COASTAL PROTECTION BOND OF 2002 SUPPORTERS (Updated July 24, 2002) Honorary Chair, Senator Mike Machado American River Conservancy Amigos de Balsa Chica Audubon Society California Ballona Wetlands Land Trust Balsa Chica Land Trust California Coastal Coalition California Council for Environmental &Economic Balance (CCEEB) California League of Conservation Voters California Organization of Police and Sheriffs (COPS) California Professional Firefighters Calleguas Municipal Water District Center For Natural Lands Management City of Los Angeles CLEAN South Bay Clean Water Action Coastal Land Trust Contra Costa Water District Delta Wetlands Properties East Bay Municipal Utility District Endangered Habitats League Feather River Land Trust Friends of Harbors,Beaches and Parks Goleta Valley Land Trust Heal the Bay Hills for Everyone Inland Empire West Resource Conservation District Land Trust for Santa Barbara County League for Coastal Protection League of Women Voters League to Save Lake Tahoe Long Beach Water Department, Board of Commissioners Los Angeles Area Chamber of Commerce Los Angeles Conservation Corps Yes on Prop 50 - Californians for Clean Water and Coastal Protection 926 J Street,Suite 907 Sacramento,CA 95814 Supporters Page 2 t Marin Municipal Water District Metropolitan Water District of Southern California Morro Estuary Greenbelt Alliance Mountains Restoration Trust Mono Lake Committee Muir Heritage Land Trust National Wildlife Federation Natural Resources Defense Council Palos Verdes Peninsula Conservancy Peninsula Open Space Trust Planning and Conservation League Santa Clara Valley Audubon Society Santa Clara Valley Water District Small Wilderness Area Preservation—Los Osos/Morro Bay Chapter Southern California Water Committee Southern California Agricultural Land Foundation South Yuba River Citizens League The Nature Conservancy The Sierra Fund The Valley Group Trust for Public Land Tuolumne County Land Trust Volcan Mountain Preserve Foundation tF## f STEERING COMMITTEE MeeanBDare I Tosd.orDir. os/ss/a2 AGENDA REPORT I Itin.Wbw I ItemNuabr Orange County Sanitation DWct FROM: David A. Ludwin, Director of Engineering Originator. Wendy Sevenandt SUBJECT: GROUNDWATER REPLENISHMENT SYSTEM, JOB NO. J-36 JOINT EXERCISE OF POWERS AGREEMENT GENERAL MANAGER'S RECOMMENDATION Information only item. SUMMARY • The Joint Exercise of Powers Agreement for the Development, Operation, and Maintenance of the Groundwater Replenishment(GWR) System and the Green Acres Project(Agreement), provides a detailed plan for water delivery for both the Green Acres Project (GAP) and GWR System, including financing, limits of spending authority, Orange County Sanitation District (OCSD)delivery of wastewater, OCSD use of reclaimed water, operations, and maintenance of the GWR System. • The Agreement was unanimously approved by the Joint Cooperative Committee (JCC) on September 16, 2002. An earlier draft of the Agreement was last reviewed with the OCSD Committees in February 2002. • Approval of the Agreement will be recommended at the October 2002 OCSD FAHR, OMTS and PDC Committees. • The delegation of authority contained in the Agreement has been revised to grant the Orange County Water District (OCWD) General Manager authority to award contracts up to $50,000. The Agreement also gives the OCWD Board authority to award contracts up to $10,000,000, following approval by the JCC. This revision was made to be consistent with provisions in OCWD's enabling legislation. • The OCSD Board and OCWD Board would both have to approve contracts in excess of$10,000,000. PROJECT/CONTRACT COST SUMMARY The Boards of Directors of OCSD and OCWD approved the GWR System on March 28, 2001, with the cost of design and construction to be paid in equal 50% shares by each agency. In June 2002, the OCSD Board approved a budget of$201,206,000. This budget includes the GWR System shared costs as well as OCSD staff costs, legal costs, and overhead costs. The Budget Information Table will be updated to present a budget amendment with the approval of the recommendation for approval of the agreement in October. Page 1 i BUDGETIMPACT ® This item has been budgeted. (Line item: 2002-03 CIP Budget Sec.S, page 157) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) The Budget Information Table will be updated to present a budget amendment with the recommendation for approval of the agreement in October. ADDITIONAL INFORMATION BACKGROUND The Groundwater Replenishment (GWR) System to date has been developed under a cost sharing agreement as amended. Under this agreement, the Joint Cooperative Committee (JCC)was established to provide project management, authority was delegated to the JCC, and provisions were prescribed for cost sharing. In accordance with direction received from the JCC, Staff and General Counsel of both agencies have prepared a new comprehensive agreement, which, if approved, will supercede the GWR System cost sharing agreement and all other agreements between Orange County Water District (OCWD) and Orange County Sanitation District (OCSD). The new agreement, titled the Joint Exercise of Powers Agreement for the Development, Operation, and Maintenance of the GWR System and the Green Acres Project (Agreement), provides a detailed plan for water delivery for both the Green Acres Project (GAP) and GWR System, including financing, limits of spending authority, operations, and maintenance of the GWR System. A draft Agreement was presented at the October 10, 2001 FAHR Committee and the November 1, 2001 PDC Committee meetings. Findings of the National Water Research Institute (NWRI) regarding their review of the equity of the cost sharing provisions were presented at the January 14, 2002, JCC meeting. A revised draft Agreement was presented at the January 28, 2002, JCC meeting, and was presented at the PDC, FAHR, and OMTS meetings in February. DELEGATION OF AUTHORITY PROVISIONS Under the proposed Joint Exercise of Powers Agreement (Agreement), the General Managers, the JCC, and the full Boards of OCWD and OCSD have contracting authority. The procedure for approval of Purchase Orders, Task Orders, Professional Services Agreements, and Construction Contracts is to go through the General Managers, the JCC, and then to the full Boards as delegated in the Agreement. Page 2 7 Authorizations for contracting, per the Agreement, do not include other Board Committees at Orange County Sanitation District(OCSD)or Orange County Water District (OCWD). The contracting authority of the OCWD General Manager will be increased to $50,000. For all contracts, agreements, or purchase orders between $50,000 to $10,000,000, the General Managers and the Joint cooperative Committee (JCC)will recommend approval to the OCWD Board. Through this agreement, the OCSD Board would be delegating authority to the OCWD Board (with recommendation from the JCC)the award of contracts that are under$10,000,000. Contracts in excess of$10,000,000 would require both the OCWD and OCSD Boards authority to award. ALTERNATIVES Without the approval of an agreement between the two agencies, the agencies would continue to operate under the existing agreements, which do not sufficiently address all the issues facing the two agencies. CEQA FINDINGS The Environmental Impact ReporUEnvironmental Impact Statement(EIR/EIS)for the Groundwater Replenishment (GW R) System was certified by the Orange County Sanitation District (OCSD) and the Orange County Water District (OCWD) Board of Directors on March 24, 1999. Addendum No. 1 was approved on March 28, 2001. Addendum No. 2 was approved by OCSD on January 23, 2002, and by (OCWD) on January 16, 2002. ATTACHMENTS Draft Joint Exercise of Powers Agreement for the Development, Operation, and maintenance of the GWR and the Green Acres Project WS:sa GAnt91obaMgenda Draft ReporlsGSteering CommitteeUd6 AR Joint Exercise of Powers Page 3 t Groundwater Replenishment System Development,Operatlon and Maintenance Agreement September!-&2ge2._.. -- Deleted:e JOINT EXERCISE OF POWERS AGREEMENT FOR THE DEVELOPMENT, OPERATION AND MAINTENANCE OF THE GROUNDWATER REPLENISHMENT SYSTEM AND THE GREEN ACRES PROJECT Draft 33 „m. r,.weum,ooc Groundwater Replenishment System Development,Operation and Maintenance Agreement September 1L 2002 pasted:a r TABLE OF CONTENTS RECITALS........................._................_........_......_..................._............................I AGREEMENT...........................................................................................................4 I. EXISTING AGREEMENTS........................................_..._......................._.._.......4 1. Termination of the Cooperative Agreement...................______..._....................._........_...A 2. Termination of the Wastewater Utilization Agreement..._. __.__.___..._.._._..__..._....._.._..._A II. PLANNING, DESIGN AND CONSTRUCTION.......................................................5 A Finance and Ownership of the System and Related FacllBles 5 3. Financing of System Facilllies............................................_..........._.._._._.._........._................5 4. Financing of the Related Facilities Upgrades................_.._..........._.._._._.___........._..___._.._..3 5. Unanticipated Capital Facilities............................................................._.......__...................5 8. System Ownership..........................................................................__..._—"._.._.__....._._......._._..JS 0. Govemlance of Planning,Design and Construction Activities 5 7. Scope of Work........................................................................................_.._..._._.._..__._.._.._._.._.5 7.1 Planning,Final Design and Construction...................................................... .........5 7.2 Regular MestinBs......................................................................_.._....__.__.._._._.._._.._..._6 7.3 Services Required........................._._.........................................._...._..........._.................6 8. Joint Cooperative CommBse_..._.._....._._.................................._.___.............................6 9. Delegation of Contracting Audbaft for the System..................... 10. System Budgets.............................._.....................................__.__..._....._.._._....._..._..._._7 C. The Water District's Planning,Design and Construction Obligations 7 11. DayAo-Day Management........................_......_...._._..............._..._....._..._....._....._.......................7 12. System Employees.......................................................... _..__...___.__....._....._.._.._.._...8 13. Reimbursement and Grant Receipts....__.................... _.__..._...____.._._._..______..___....A 14. lands.Easements and Rights-M-Wry........................................................._._...__....... 8 15. Permits and Approvals......................._....._.............................__................. __..._B 18. Plans and Specifications......................_....._....................................__........ __.._._.._.....8 17. Preparation of Contract Documents;..................__............. _.._._.._._.._...._..____.__._.._......8 18. Advertisement of Bids.........................._....._.................---------___------------__._.._....... B 19. Construction 20. Reports and Budgets.........................................._._.._............................................9 D. The Sanitation District's Planning,Design and Construction Obligations f 21. Payment of Invoices.................................................................................................._..._........._.....9 Draft 33 ,.m.ivxwa.a.o« Groundwater Replenishment System Development,Operation and Maintenance Agreement 0 September�.2002._.: Debated:6 22. Trickling Filter Upgrades............................................................................................................10 23. Ellis Avenue Pump Sieben Upgrades.._.........................._._.........................._......._..._................10 24. Lea"of Property............................................................................................................................10 25. Grant of Ucense to he Water District to Use an Entrance on he Sanitation Demers Properly....10 26. Grant of Ucense to the Water Dist ct erTemparary Construction Staging Areas........................11 Ill. OPERATION AND MAINTENANCE................................_.....................................11 A. The Water District's Operations and Maintenance Obligations 11 27. Water Dlsmci Operation and Malntenance............................_.._....._......................_..........._.......11 28. Acceptance of Specification Influent........_......._................_....._.........................................._.......11 29. Capability to Accept 100MGD........_...............................................................................................12 30. Electrical Power Supply_...._.........................._..........._......................_............................._..........13 31. NPDES Permit..................................._...........................................................................................13 32. Water Reclamation Permit......................._............................................_......................................13 33. System Employees..............................._.._.._......_............_....._._........_........................._...........13 34. Staffing Plan........................................._......_....................._....._.............._........................._........13 35. Regular Meetings........................................................._.._..._........................................................14 36. System Modifications.............................................................._........._........_.................................14 37. Compllanca with Laws...............................................__....._................................._........................14 38. Monthly and Annual Reports..._..........._...................__......................................................._.......14 39. Annual Budgets...................................._................._.._.._.__....._................................................14 40. Acceunting........................_.................._......................_..............._._................_...._.....................14 41. Records and Reports..........................................................................._..._..............._...................15 42. Regulatory Reporting......................................_._....._...._......................._..._......_............_.__.....15 43. Annual Independent Audit........................................._...._.............._......_....................._..._._.......15 44. Insurance................................................................................_................_.....................................15 45. Green Acres Pmject Service To The Sanitation District.......................................................16 45.1 Cost of Reclaimed Water....................................................._._...._............._........_.........._.....16 45.2. Quality of Reclaimed Water........................................._.............................................._..._.....16 45.3 Minimum Delivery of Project Reclaimed Water......................................................._..._.._......16 45.4 Ownership of Green Acres Project Reclaimed Water Facilities...............................................16 46. Qvmlily of Reclamation Plant Waste................_..........................._.........._.._.................................17 47. [Discharge of Excess Reclaimed Water................_................_......................................................17 48. Metering,Measurement of Flows and Invokes_............................................................................17 49. Water Quality Monitonng.................................................................................................................17 50. Independent Contractor Status..........................................._..........................................................17 51. Costs of Addressing Newly Discovered Contaminants...._._........................._...............................18 52. Other Costs.........................................._.........................................................................................18 B. The Sanitation District's Operations and Maintenance Obligations...._...._.........._........._._._...18 53. Dalivery and Quality of Wastewater................................................................................................18 54. Industrial Pretreatment and Pollution Source Control Program......................................................19 55. Acceptance of Waste Brine,MlcroNter and Green Acres Pmject Return Fears............................19 56. Further Conditioning or Treatment of Brine to be Discharged to the Sanitation Dispel Outiall...20 Draft 33 rewi.gmxmmc Groundwater Replenishment System Development,Operation and Maintenance Agreement e September 1„_20oz_._ uleue:a 57. Costs of Specification Influent......................................_..............._................................................20 50. Costs of Addressing Newly Discovered Contaminants...................................................................20 59. Compliance with laws................................................................._.........._....._....._......................_20 IV. TERM AND TERMINATION...................................................................................20 60. Tenn................................................................_........................._._..........................................._...20 V. EVENTS OF DEFAULT; DISPUTE RESOLUTION..............................................21 61. Even!ofDefault.............................................._...._......_..._........................_.............._.._..............21 62 Consequence of Water District DefauO................._................_.............................................._.......21 63 Consequence of Sanitation Distri Defauk.................................................................._.......21 64 Dispute Resolution......................_..................._....._........_.............................................................22 VI. MISCELLANEOUS.................................................................................................22 65. Joint Cooperative Committee Review of Operations..................................................._.................22 66. Force Maleure......................................................._........................................................................22 67. Indemnities....................................................................................................._....._..............._.......23 97.1 The Sanitation District's Indemnity For Negligent Ads or Omtedans Related to Construction 23 67.2 The Water Dial Indemnity............_........................_....._..........._....._.............._......_.......23 67.3. JdntlndemniH................._........._............................_._....._....._...._................................._...23 68. Notices............................................................................._........................................................_...23 69. Successors And Assigns........_...._........_._..............._.._..................._....._.._.........._.................25 70. Further Ads and Assurenms............_........_........................_.............._....._...._........_.................26 71. Captions............................................................._...........................................................................25 72. Seveability................................_........_..................._........................................................_........_25 73. Entire Agreement......................._....._._..................._..._...............................................................25 74. Modifications In Writing............................................._....................................................................25 75. Interpretation..............................................................................................._._...............................25 76. Governing Law................._..._...................................................................._..................................26 77. No Third-Party Beneficledes......................................................................................................_...26 78. Assignment.........................._..................._............................................_._.._................................26 79. Representation and Warning es..........._............_....._.............................................._....................26 iii Draft 33 uw,aweummc JOINT EXERCISE OF POWERS AGREEMENT FOR THE DEVELOPMENT, OPERATION AND MAINTENANCE OF THE GROUNDWATER REPLENISHMENT SYSTEM AND THE GREEN ACRES PROJECT This Joint Exercise Of Powers Agreement for the Development.Operation And Maintenance Of The Groundwater Replenishment System and the Green Acres Project('Agreement')is made and entered into,to be effective the day of 2002,by and between the Orange County Water District(the'Water District")and the Orange County Sanitation District(the"Sanitation District). The Water District and the Sanitation District are sometimes collectively referred to in this Agreement as the"Parties,"and individually referred to as each "Party."1 RECITALS This Agreement is based on the following facts, mutual understandings and intentions of the Parties: A. The Water District is a public agency created and governed by the Orange County Water District Act(uncodified Act 5683, State. 1933, Chapter 924,as amended). The Water District is authorized to acquire,construct,operate and maintain facilities necessary to augment and protect the quantity and quality of the water supply within its boundaries.The Sanitation District is a public agency formed by legislation effective July 1, 1998 to succeed to the powers of then existing County Sanitation Districts of Orange County and is organized pursuant to the County Sanitation District Act Chapter 3, Part 3, Division 5 of the Health and Safety Code, as amended. The Sanitation District is authorized to acquire,construct,operate and maintain facilities for the collection,treatment and disposal of wastewater and water reclamation facilities. B. On January 15, 1997,the Parties entered into an agreement enfided "Second Amended and Restated Agreement for Utilization of Reclaimed Wastewater" (the-Wastewater Utilization Agreement"). Pursuant to the Wastewater UBlization Agreement,the Sanitation District diverts secondary wastewater from its secondary clarifiers to two treatment facilities at the Water District,the'Water Factory 21"facility and the"Green Acres Project"reclamation facility. Water Factory 21 treats the Sanitation District's wastewater and discharges treated water to injection wells designed to prevent seawater intrusion into the Orange County groundwater basin through the Talbert Gap located in the Huntington Beach,Fountain Valley and Costa Mesa areas. The Green Acres Project facility treats wastewater to Title 22 standards for reclaimed water and provides it to users for irrigation and processing. The Water District sends waste brine and other waste streams from Water Factory 21 and the Green Acres Project facility to the Sanitation District for treatment and disposal. The Sanitation District purchases water from the Green Acres Project and uses the water for various purposes at the Sanitation District's treatment plants. 1 Unless otherwise required by the context in which any defined term appears, capitalized terms shall have the meanings specified in Exhibit A hereto. Groundwater Replenishment system Development,Operation and Maintenance Agreement Septembwl&.?g 2_._.. pareaed:e C. In February of 1997,the Parties entered into an agreement entitled "Cooperative Agreement for Project Planning for Orange County Reclamation Projecr initiating project planning for the Groundwater Replenishment System(formerly known as Orange County Regional Reclamation Project or"OCR"Project).This agreement, as amended, established a Joint Cooperative Committee to act as an advisory board for development of the Groundwater Replenishment System. The agreement as amended is referred to in this Agreement as the"Cooperative Agreement" d b ,, oelemd:p D. As proposed, the Groundwater Replenishment System All take treated secondary wastewater from the Sanitation District's Reclamation Plan[No. 1 and if to specific standards. Subject to the terms of this Agreement, the System and the Green Acres Project will, under base operating conditions, be capable of accepting one hundred and four(104)mgd of wastewater and producing seventy(70)mgd of Product Water,and will,under peak conditions,be capable of accepting one hundred and twenty-eight(128)mgd of wastewater and producing one hundred(100)mgd of Product Water. The wastewater will be treated at advanced wastewater treatment Jacilities.(the__._.... � � "AWT Facilities")to be constructed by the Parties on the Water District's and Sanitation District's property in Fountain Valley. As more specifically described in Exhibit B,the ANT Facilities will include equipment for microfiltration, reverse osmosis and ultraviolet disinfection, and related pumping, power and chemical facilities.The AWT Facilities will replace Water Factory 21. E. Initially, nearly all of the Product Water from the Groundwater Replenishment System will be placed in the Orange County groundwater basin in two ways. First,some of the Product Water will be injected into existing and/or new injection wells designed to prevent seawater intrusion in the Talbert Gap located in the Huntington Beach, Fountain Valley and Costa Mesa areas. Second, some of the Product Water will be pumped to the Water District's Santa Ana River water spreading basins in Anaheim and Orange. From there,the Product Water will percolate into the groundwater basin. In order to convey the water to the spreading basins,the Parties intend to construct a pipeline from Fountain Valley to the basins("GWR Pipeline"). In addition, a small portion of the Groundwater Replenishment System's Product Water may be used for the Green Acres Project during the summer months,or for industries, businesses,golf courses, parks and other land uses with a need for process water and/or irrigation water. F. The System to be constructed and operated pursuant to this Agreement will have the capacity to produce approximately seventy-two thousand(72,000)acre- feet of Product Water per year. The precise amounts of Product Water produced per year will vary due to weather conditions,available wastewater flows and other factors. The Parties may in the future explore the possibility of expanding the treatment capability of the System in one or more additional phases, and will address any mutually-agreed expansion in one or more amendments to this Agreement G.The Parties estimate that: (1) the planning,design and construction of the System components will cost approximately four hundred and twenty-seven million dollars($427,000,000);(ii)the trickling filter upgrades described herein will cost 2 Groundwater Replenishment System Development.Operation and Maintenance Agreement SeptemberiL.M2 :- OelaRaava approximately fifty million dollars ($50,000,000); and(iii)the upgrades to the Ellis Avenue Pump Station and related diversion facilities will cost approximately twenty- seven million dollars($27,000,000). The Parties acknowledge that these figures are estimates and that the Parties'obligafions under this Agreement shall not be affected by any increase in the actual cost or any future estimate of the cost of the System or the upgrades described above. The allocation of the costs of the facilities described in this Paragraph is set forth on Exhibit C. H. The System will fulfill a number of important purposes. First, the System will provide a new reliable source of water to serve the growing Orange County population. Second, the groundwater recharge will maintain or reduce the average total dissolved solids("TDS")content of the water in the Orange County groundwater basin. Third,the System will allow the Water District to replace its aging Water Factory 21 facilities. Fourth, the System will provide a source of water for maintaining and enhancing the Talbert Gap Seawater Intrusion Barrier that is reliable, high quality and unaffected by drought conditions. Fifth, by providing water for the Intrusion Barrier and groundwater recharge, the System will help reduce reliance on imported water. Finally, the System will give the Sanitation District a reliable outlet to dispose of up to one hundred(100)million gallons per day("mgd")of secondary treated wastewater for certain periods. This will allow the Sanitation District to delay and possibly eliminate a planned second ocean outfall, needed primarily to dispose of peak flows. 1. In entering into this Agreement, each Party is retying on the other Party to perform its obligations hereunder. J. Since signing the Cooperative Agreement,the Parties have studied the planning, engineering,funding, environmental, and economic aspects of the System's design,construction and operation.The Parties have: (a)conducted research on system configuration, equipment testing and equipment demonstration; (b)considered issues relating to size of components(for both the System and the Green Acres Project),environmental compliance,financing(including grants), legal and governance matters, rights-of-way acquisition,standards and public information; and(c)considered regulatory compliance requirements, including permits(from such agencies as the Department of Health Services and the Regional Water Quality Control Board), testing and reporting requirements. The Parties have also completed 30%design of the System and are obtaining the necessary permits for the System. K. On March 28,2001, the Board of Directors of the Water District and the Board of Directors of the Sanitation District(the"Governing Boards")approved and authorized proceeding with the final design, construction, and operation of the System, paetee: In addition,the Governing Boards authorized implementation,to the extent possible, of the Groundwater Producers' recommendations for proceeding with final design, construction, and operation of the System as set forth in their letter dated March 25, 2001. L. This Agreement provides for the further planning, design, construction, operation and maintenance of the System by the joint venture of the Parties. This 3 Groundwater Replenishment system y Development,Operation and Maintenance Agreement september]3,_3002_.. odated:a Agreement is a Joint Powers Agreement within the meaning of Government Code §5500 et seq. Pursuant to this Agreement,the Parties intend to jointly exercise powers common to them. The Parties possess,Inter alia,the following common powers and authority: (1) the power and authority to construct, operate and maintain facilities, pipelines, other conduits,machinery, and other works to conserve, reclaim, purify, treat,transport or otherwise manage and put to beneficial use water that was recovered from operation of a sewerage system; (2) the power and authority to discharge water so as to replenish the underground basin and other natural water resources; and (3) the power and authority to acquire real and personal property, within or without the Parties'districts,as necessary or convenient for the full exercise of their respective powers. The method by which the Parties Intend to jointly exercise these powers is set forth in this Agreement. This Agreement is also Intended to set forth the terms and conditions governing(1)the Sanitation Distrct's provision of secondary treated wastewater to the Water District for the Green Acres Project, and (2)the Water District's provision of tertiary treated water to the Sanitation District. AGREEMENT NOW,THEREFORE, in consideration of the foregoing facts recited and the mutual goals and objectives contained herein,the Parties agree as follows: I. Existing Aareements. 1. Termination of the Cooperative Agreement. This Agreement is intended to supercede the Cooperative Agreement. Therefore,the Cooperative Agreement shall terminate as of the effective date of this Agreement. On termination,the Parties shall have no further obligations under the Cooperative Agreement,except for financial obligations that were incurred prior to termination. 2. Termination of the Wastewater Utilization Agreement. This Agreement is intended to supercede the Wastewater Utilization Agreement.Therefore, the Wastewater Utilization Agreement shall terminate as of the effective date of this Agreement. On termination,the Parties shall have no further obligations under the Wastewater Utilization Agreement, except for financial obligations that were incurred prior to termination. ll. Planning. Design and Construction. A. Finance and Ownership of the System and Related Facilities. 4 Groundwater Replenishment System Development,cremation and Maintenance Agreement i September310a2 asumea:a 3. Financina of System Facilities. Each Party shall pay fifty percent(50%) two :ga®gaga of the costs of planning, design and construction of the System,described on Exhibit B attached hereto. Such costs include but are not Ilnilted to(a)fl@ymenfs.forprofast iogaf_... iwebd:at.pesomnr consultant contract services,and(b)construction projects and other project-related iwatadt'C costs approved in accordance with this Agreement. Except as specifically set forth in this Agreement,each Party shall bear the costs of Its employees working on the System. 4. Financina of the Related Facilities Upgrades, The Sanitation District shall,at its sole cost and expense, make the trickling filter upgrades described in Section 22 of this Agreement and the upgrades to Its Ellis Avenue pump station and related diversion facilities described in Section 23 of this Agreement. 5. Unanticipated Capital Facilities. The Parties contemplate that the System as currently designed will be adequate to accept Peak Flows,of Specification_--_- DdSb b(a deamdhmoy Influent. If the System as currently designed proves inadequate to accept Peak Flows of Specification Influent and additional equipment, components or facilities are necessary to provide the required capacity,the Parties shall each pay fifty percent (50%)of the cost of such additional equipment, components or facilities_ .............................. GWtwlle kp .iallmem ages aapadauWai,duem 6. System Ownership. The Water District shall hold title to all new System the[ s.waeeonny(is a a"a facilities to be constructed under this Agreement, Including but not limited to the I,elowtw..audmsm one nsrdled screeningfacilities, pipelines, pumping facilities,the AWT Facilities,the GWR Pipeline, and tMBr"•bm(12e)men;euymed, PP P P 9 P manse.that odameW,upon and the seawater barrier facilities and related facilities,and all easements and rights-of-way aemea(n hayegm(ac)many i to be obtained for the System's facilities,The Sanitation District shall retain title to its-.- •m'ua syatemodmmdmed - - - - avaWae Peek FlawaaSpetlflnelldn existing property that will be leased to the Water District for construction of the AWT armed In eessae doaa Wadmd end Facilities pursuant to Section 2Aof this Agreement, `: roar(+wt mgd,erd ggue mace .............................._........................•. eltldi has sendenon Dialect redwas tt B. Governance of Plannina. Design and Construction Activities. 11 me Irow orspecmmuan Influent to testsromm.hno..oadlymmeem lour(10e mad,Teak Flgve•shell he 7. Smog of Work. The Parties will jointly Ian, design and construct the na her Me, b.,sw n.sandiest 1 Y P 9 mg w. whwaeaaaoesandiest System according to the following scope of work. it endd+ynvomtmsapanod. rates Amount"shall mean the daily it avenge amount of lmenecallon 7.1 Plannina, Final Design and Construction. The Parties shall complete tt resident anticipated to he accepled design of the System, establish the method of product delivery, prepare construction a�s„ee�i o�,t;;uone plan set o the plans and establish detailed specifications for equipment. The Parties shall also ; sy.mm prepared by Me water construct the System. To that end,the Parties shall prepare bid documents,solicit bids, District sr,n..seen plan Gains, neotateandexecutecontracts, purchaseeuipment,provide ';;'; eedailya.�......sentel g 9 P ;; tlp"harnesses rness s Influent nt aseepu.y management,Inspect construction projects,and comply with regulatory requirements :; (al moan.Mi d,eMe prng for operator,testing and start up of the System. epacmo.san.fluent acamapted or l: aaltlpsmil to he accepted,as 7.2 Regular Meetinas. During the desian and construction of the Svslem. appllwble,as Peak Rose.) supervisory erso nel from both Parties shall meet week) n to review desi and ` Mideast: construction issues. o.idmd:s ' Fomwibd:aullee a,d NumhMng 5 Groundwater Replenishment System Development operation and Maintenance Agreement Septamber32002_ DelerM:6 7.3 Services Required. Throughout final design and construction of the System, the Water District and/or the Sanitation District shall obtain a variety of services in the following areas: • Project Management Engineering • Environmental Finance Legal • Grant and Loan Support • Public Relations • Construction Management • Construction • Other specialized services as identified and approved pursuant to this Agreement 8. Joint Cooperative Committee. Ultimate authority for the planning, design and construction of the System rests with the Governing Boards of the Water District and the Sanitation District. In order to facilitate and expedite the development process, the Parties hereby continue the Joint Cooperative Committee previously established pursuant to the Cooperative Agreement and delegate to that Committee and to the General Managers certain authority to direct and oversee planning,design and construction activities as set forth below. As provided under the Cooperative Agreement,the Joint Cooperative Committee will continue to consist of a total of six(6) directors, including three(3)Water District directors appointed by the Water District President and three(3)Sanitation District directors appointed by the Sanitation District Chair. In addition, the Water District President and the Sanitation District Chair shall appoint three alternates for each agency. For each Party,an alternate shall some on the Committee in the event that a director is absent. The Joint Cooperative Committee shall annually elect one of its members as Chair and one of its members as Vice-Chair who shall preside at all meetings. A quorum for the purpose of transacting business shall consist of two members from each of the two boards of directors of the Parties. All actions of the Joint Cooperative Committee shall require a majority vote of the members present at a meeting; provided, however,any approval or recommendation of the Joint Cooperative Committee pursuant to Section 9 shall require the affirmative vote of two members appointed by each of the Partie;.... ....................._........ .............................._...- paexa: 9. Delegation of Contracting Authority for the Planning. Design and Construction of the System. In order to further facilitate and expedite the development process,the Sanitation District hereby delegates to the Water District Board of Directors the final authority,consistent with the limits set forth below, for the approval,award and execution of all contracts and change orders necessary for planning,design and construction of the System, including_ professional service contracts, construction __. edema:ce elopmm contract . . .... 9P .. ................. ... hors._ .hall_........._..._.. implemented and ursua ttothis SSystem h.a bac.a.nal hicli_er o.I.ity shall be._.__..... h .,..... oaema:,an>redemiyemuamp implemented pursuant to this Section. The General Manager of the Water District shall ero weeaw mbu°a euo°penme have the authority to issue notice of bids or requests for proposals, and award and ei0^w'"•"8�°°taco sraam execute each System Contract with payments of not more than fifty thousand dollars 6 Groundwater Replenishment System Development.Operation and Maintenance Agreement Septemlra32W2....._ 0tletrd:0 i I j$50,0001 and shall have the authority to execute all other System Contracts subject to the following: peraud:mroreach system La or each Contract with ants n_excess of fiH,y...--....-_�r ' °PM18LM-0M1 pam,emme�m -)_F_.---..-- -51's.� ---------...-` rot emeelna ssoa.000. ttwusand dollars f$ 000 , but not more than ten million dollars ___ i a.c.sem Rzore ft Jell wn eP,.... .l...... ....... j$10,000,0001,the General Managers and the Joint Cooperative - pmnme:tled•ern ua Js�m Committee shall have recommended,and the Board of Directors caa-r c°" "`elwi nare of the Water District shall have approved,the award of such c ¢ a«�et s sr+�m System Contract. RM upea:pun ern Nemlwirg pe emd:o (bl For each System Contract with payments in excess of ten million dollars $10,000,0001,the General Managers and the Joint Cooperative Committee shall have recommended,and the Governing Boards shall have approved,the award of such System Contract. jcFor each System Contract with payments in excess of the applicable line item in the System Budget,the Governing Board;____.... pasted: shall have approved the bid notice or request for proposal documents,if any,and the award of such System Contract. 10. System Budgets. The Water District and the Sanitation District have approved a joint budget for the development and construction of the System wNch budget is attached as Exhibit D. To the extent that additional funds are required to complete the development and construction of the System,the Parties will meet to discuss appropriate modifications to the System Budget,and neither Party shall unreasonably refuse to modify the System Budget as necessary to complete the development and construction of the System. C. The Water District's Planning. Design and Construction Obligations. 11. Day-to-Day Management. The Water District shall provide day-today management of the planning,design and construction of the System, subject to the direction and oversight of the Joint Cooperative Committee,the Governing Boards, and the General Managers in accordance with this Agreement. The Water District shall serve as the contracting authority for the Parties for the System and contract directly with all professionals,construction fines and other outside contractors. The Water District shall execute and administer the contracts for the System and make all payments thereunder subject to the teens and conditions herein. 12. System Employees. The Water District shall recruit, select,employ,and supervise all staff employees specifically retained to provide services for the planning, design and construction of the System,including but not limited to any temporary, part time or limited term employees. The Water District shall be considered the employer of any and all such employees. 7 Groundwater Replenishment System Development,Operation and Maintenance Agreement Seplem6er 13.2002._. selated:e 13. Reimbursement and Grant Receipts. The Water District shall pay for consultants,contractors,and other System-related costs in accordance with the terms of this Agreement. The Water District shall provide documentation to the Sanitation District substantiating the System-related costs incurred by the Water District. The Water District shall receive all grant receipts and credit the System ledger for the grant receipts as they are received. The Water District shall invoice the Sanitation District and Sanitation District shall pay for fifty percent(50%)of the expended amount(the cost of outside services), less fifty percent(50%)of the grant receipts, and less the costs of the services provided by the Sanitation District(not including the costs of the Sanitation District employees). 14. Lands. Easements and Rights-of-Way. Under the Joint Cooperative Committee's direction,the Water District shall obtain all lands, easements and dghts-of- way necessary for the System's construction and operation. 15. Permits and Approvals.Under the Joint Cooperative Committee's direction,the Water District shall obtain all permits and approvals necessary for the construction and operation of the System. All permits and approvals are to be held in the Water District's name. 16. Plans and Specifications. The Water District, under the direction of the Joint Cooperative Committee and in consultation with the Sanitation District,shall prepare,or cause to be prepared,the plans and specifications and the contract documents for all components of the System, and accomplish all other work necessary for the System's design and engineering. 17. Content of Contract Documents. Each set of contract documents for the System shall include, among other things,provisions requiring that the contractor do the following: (a) name the Water District and the Sanitation District as additional named insureds under any and all insurance policies required by the contract documents; (b) indemnify and hold harmless the Water District and the Sanitation District for any and all injuries or damages caused by the contractor in connection with the construction of the System components; and (c) name the Water District as beneficiary under any contractor bonds required by the contract documents. Each set of contract documents for the Related Facilities shall include among other things,provisions requiring that the contractor do the following: 8 Groundwater Replenishment System Development,Operation and Maintenance Agreement SaptembeM_]„_2002_.... f ecistae:a (d) name the Water District and the Sanitation District as additional named insureds under any and all insurance policies required by the contract documents;and (a) indemnify and hold harmless the Water District and the Sanitation District for any and all injuries or damages caused by the contractor in connection with the construction of the Related Facilities components. 18. Advertisement of Bids. Upon receiving the Joint Cooperative Committee's approval of the plans and specifications for a System component project. the Water District shall publicly advertise for construction bids for that project if required. 19. Construction Management/Acceptance.The Joint Cooperative Committee shall approve construction management services for each construction- project and the Water District shall contract for such services for each such project. On completion of construction for each System component project, such project shall be accepted by the Board of Directors of the Water District following a recommendation by the Geneml Managers and the Joint Cooperative Committee that the component was constructed and completed in accordance with the applicable System Contract. 20. Reports and Budgets. During the design and construction of the System, the Joint Cooperative Committee shall prepare,or cause to be prepared, an annual report of the System's development costs on or before the first of March for each year. The Joint Cooperative Committee shall recommend to the Governing Boards adjustments to the System Budget. D. The Sanitation District's Plannina.Design and Construction Obligations. 21. Payment of Invoices. Sanitation District shall have the right to review and confirm that invoices described in Section 13 of this Agreement are delivered in conformance with the terms of this Agreement. The Water District shall present a warrant register and backup invoices to the Sanitation District one day prior to the Water District's issuance of checks. The Sanitation District shall wire 50 percent(50%)of the value of the check to be issued the following day to the Water District. If during review of the warrant register the Sanitation District disputes any payment as not being in accordance with this Agreement, such disputes shall be resolved pursuant to Section 8 ..... gaterea:e 22. Tricklina Fitter Upgrades. Concurrent with the construction of the System,the Sanitation District,at Its sole cost and expense,shall rehabilitate its existing trickling filters to increase capacity and reliability by installing standby electrical power, Pew trickling filters and secpndary.clarifiers._ pekoe: 9 Groundwater Replenishment System Development,Operation and Maintenance Agreement Ssptomber13,2902 faelateilie 23. Ellis Avenue Pump Station Upgrades. Concurrent with construction of the System,the Sanitation District shall rehabilitate the Ellis Avenue Pump Station and related diversion facilities. ... 1'onnaWe:Bulled aria NvmMenp 24. Reduction in Wastewater Supply. In the event sipnificanl wastewater supply changes occur as a result of Insufficient volumes of wastewater being collected by the Sanitation District's system which individually or in sum result in a reduction of the Waste Water Flow to the Sanitation District's Reclamation No. 1 to below 110 mad (excluding wastewater from the Santa Ana River interceptor Line) the Parties may desion and construct additional diversion facilities to increase or redirect wastewater deliveries to Reclamation Plant No. 1 upon mutual agreement as to the facilities to be constructed and the appropriate sharing of costs. Any such additional facilities shall be owned by the Sanitation District. 25. Lease of Property. On or before March 1,2003,the Parties shall enter into a lease("Lease"), in a form that is mutually acceptable to the Parties,whereby the Sanitation District shall lease to the Water District the property described on Exhibit&.......... wddaro attached hereto(the"Property'). During the term of the Lease,the Water District shall use the Property for System-related purposes. The rent under the Lease shall be one dollar($1.00)per year. The rent is set at the nominal sum of one dollar($1.00)per year because the Sanitation District will otherwise receive adequate and substantial consideration from the Water District under this Agreement. As the landlord and property owner,the Sanitation District shall assist the Water District in obtaining any permits or approvals that the Water District may seek from governmental agencies in connection with the construction and operation of the AWT Facilities, the Influent screening facilities,the landscaping and associated piping on the Property. Upon the Water District's request,the Sanitation District shall file or cause to be filed any application,documentation or information necessary to obtain such permits or governmental approvals. 26. Grant of License to the Water District to Use an Entrance on the Sanitation District's Property. The Sanitation District hereby grants to the Water District, its employees, consultants,contractors,sub-contractors and designated agents and representatives,a license to enter upon,occupy,and use one of the Sanitation District's entrances, to be selected by the Sanitation District in Its reasonable Judgment,for employee access and deliveries associated with the System, including chemicals and other materials. In no event,however,shall access for construction workers be permitted at the Sanitation District's main entrance located on Ellis Avenue at the on/off ramps to the Interstate 405 freeway.The term of the license to use an entrance shall begin upon execution of this Agreement and continue until this Agreement expires or is terminated 27. Grant of License to the Water District for Temporary Construction Staging Areas.The Sanitation District hereby grants to the Water District, its employees,consultants, contractors,sub-contractors and designated agents and representatives,a license to use temporary construction staging areas outside the Property as may be necessary for construction of the AWT Facilities,the Influent 10 Groundwater Replenishment System Development,Operation and Maintenance Agreement _ September 1$2002_.. pereted:e screening facilities,landscaping and associated piping as long as these staging operations do not unreasonably interfere, in the Sanitation District's reasonable judgment,with the Sanitation District's operations.The tens of the license for temporary construction staging areas shall begin upon execution of this Agreement and continue until the AWT Facilities,the influent screening facilities, landscaping and associated piping are constructed. Once the AWT Facilities,the influent screening facilities, landscaping and associated piping are constructed, the Water District shall remove or cause to be removed by its contractors all equipment and structures from the temporary staging areas and it shall no longer have access thereto. III. Operation and Maintenance. A The Water District's Operations and Maintenance Obligations. .. rarstrea:Igaeeran0 ras�mpaq 28. Water District Operation and Maintenance.The Water District shall,at its sole cost and expense(except to the extent provided in Sections 2�, 5�,5Qand 59), paeteth a provide,or cause to be provided, all tools,equipment,vehicles, materials,supplies ands:; prarw:z qualified personnel necessary to operate and maintain the screening facilities located py�.r on Sanitation District property, feed pipelines to the AWT Facilities located on Sanitation prarema District property,the AWT Facilities,the GWR Pipeline, the seawater barrier injection wells and all other System facilities constructed pursuant to this Agreement.The Water District shall collect and maintain operating fees and charges for these purposes. Notwithstanding the foregoing,the Water District shall not be obligated to operate and maintain the Sanitation District's trickling filters, Ellis Avenue Pump Station or related diversion facilities that may be upgraded or constructed pursuant to Sections 22 and/or 23 of this Agreement. 29. Acceptance of Specification Influent.At Its sole cost(except to the extent provided this Section and in Sections 515_4 and ft,theWater District shall. pethus2l operate the AWT Facilities and the Green Acres Project.Beginning two years after the pyeppik r AWT Facilities become Operational,the Water District shall continuously operate the patreeca AWT Facilities and the Green Acres Project to collectively accept a minimum continuous flow(delivered at a uniform rate)of seven(7)mgd of Specification Influent, increasing to forty-four(44)mgd as follows; . . � Operating Years Minimum Specification Influent Flow 2 yrs. After 7 mgd. 2009 15 mgd. 2012 29 mgd. 2015 44 mgd. To the extent that the Sanitation District provides non-Specification Influent,the Water Distrigvvill use its.reasonable efforts to acceptsuch nonSpecificatign Influent,in which._,...`® case the Sanitation DisMcl shall reimburse the Water District for all incremental costs incurred as a result of such influent being non-Specification Influent. Notwithstanding the foregoing,the Water District may rejedPonSpegificati_on Influent if the Water..____.._..... I1rlrteC 11 Groundwater Replenishment System Development,Operation and Maintenance Agreement September l,&;git2...,,.... Deletedte District reasonably determines that: (1)such non-Specification Influent may cause substantial damage to the AWT Facilities,_or.(11),It Is unable to.treat and dlspose oof such .... tMletrtl: non-Specification Influent in compliance with applicable law. The Water District shall make every effort to operate the AWT Facilities without total shutdowns for maintenance. No total shutdown (excluding a shutdown mandated by a regulatory agency)of the AWT Facilities wiltbepermitted without a 48-hour written - pelettl: notice to the Sanitation District and receipt of the Sanitation Dlstrids cbncurrence. In the event of a dispute, the Parties shall exercise the procedures described in Section 641n the.event the.groundwater basin is.unable.to_receive_the Product Water from the tMreeed,e treatment of Specification Influent,the Parties shall meet to determine otherways to provide the Sanitation District with an outlet for Its wastewater flows. _ ramuttMi B°Ikb aM NuniEeMp 30. Capability to Accept Peak Flows. Commencing six(6)months after the System becomes Operational, the Water District shall routinely operate all System components,and otherwise maintain all System components in a state of readiness,so the System will be able to accept Peak Flows of Specificaton Influent , and notwithstanding Section 2&..the_Water District shalt accept Peak_Flows of Specifcation ... twandte Influent. The Sanitation District shall provide the Water District with pdor notice of the ..._ Sanitation District's Intent to send Peak Flows of Specification Influent to the Water District,which notice shall follow one of the formats described in Exhibit,F„ Onca a Deleted.e year, upon one week's prior notice,the Sanitation District may request that the Water ...... twxeat District test the System's capability to accept one hundred and twenty-eight(128)mgd of Specification Influent. Such test shall consist of running the System for eight(8) hours accepting an hourly equivalent of Specification Influent of one hundred and twenty-eight(128)mgd. The Sanitation District shall provide sufficient Specification Influent for the test and shall reimburse the Water District for the costs Incurred as a result of the test. Notwithstanding the foregoing,if the Sanitation District agrees In advance in writing,the Water District may temporarily reduce the System's capability to accept Peak Flows of Specification Influent. The Sanitation District must approve in writing both the amount and duration of any such reduction in capability. 31. Electrical Power Supply. Throughout the life of the System,the Water District shall Snaureareliable,source of electricalpower to predude disruption-of._-..._ twwamwe.o,..w.nlew System operations by securing and maintaining two Independent 66-kV lines from p1tlide�"nm Southern California Edison,or an equivalent provider. 32. NPDES Permit. The Water District shall obtain and maintain a valid National Pollutant Discharge Elimination System ("NPDES")permit authorizing the discharge of treated water from the System to the receiving waters of the State of California. The Water District shall,at Its sole cost and expense,(a)defend any regulatory or citizen enforcement actions that may arise out of alleged violations of the NPDES permit caused by operation of the System, except to the extent such actions result from the receipt of non-Specification Influent from the Sanitation District and(b) pay any fines or civil penalties levied as a result of any such enforcement actions and/or any amounts tendered in settlement of such enforcement actions.To the extent such actions result from the receipt of non-Specification Influent from the Sanitation District, 12 Groundwater Replenishment System Development,Operation and Maintenance Agreement Septamber3.2902.....- oelated:a the Sanitation District shall, at its sole cost and expense, (a)defend such actions,and (b)pay any fines or penalties levied as a result of such actions and/or any amounts tendered in settlement of such actions. 33. Water Reclamation Permit. The Water District shall obtain and maintain a valid Water Reclamation Permit from the Regional Water Quality Control Board authorizing the treatment and reuse of the System's water. 34. System Employees. The Water District shall recruit, select, employ, and supervise all staff employees and/or contractors retained to provide services for the operation and maintenance of the System, including but not limited to any regular fulltime, temporary, part-time,or limited term employees. The Water District shall employ qualified staff and/or contractors to operate the System in accordance with e^.aec.. tl ..3, .. ..""--_ _......__....._._.. .. eretdd: ._ ........... _............. ...._..._..................._...................-a.... ONeEed: 35 Staffing Plan: Use of Contractors. The Water District has developed a staffing plan for the operation and maintenance of the System that describes the System's employees("Staffing Plan"J and provided a_copy of the Staffing_Plan to the _ ...... ctietea: Sanitation District. o n In recruitin selecting,employing,and su LLte� 9• 9• he System, sled employees and/or contractors for the operation and maintenance of the System,the Water District shall follow and implement the approved Staffing Plan, as approved by the Water Districts Board of Directors. The Sanitation District shall have the right to review and approve any changes to the Staffing Plan that could reasonably be expected to have a material effect on the System's ability to accept Specification Influent in the amounts required by this Agreement. The Sanitation District must approve the use of contractors to operate any material portion of the System, including all performance criteria issued to such contractors. 36 Regular Meetings. During operation of the System,supervisory personnel from both Parties shall meet regularly to review operational and maintenance Issues. During the first two years after the System becomes Operational, these meetings shall occur at least monthly. Thereafter,the meetings shall occur at least quarterly. 37. System Modifications. During operation of the System, the Water District shall not modify, either temporarily or permanently,any aspect of the System that would impair the System's ability to accept Specification Influent in the amounts required by this Agreement. 38. Compliance with Laws. In operating, managing, maintaining and repairing the System'sfacilities,the Water District shall strictly comply with the requirements of all permits and licenses and all applicable federal, state and local statutes,ordinances, rules and regulations governing the operation and maintenance of the System. 39 Monthly and Annual Reports. The Water District shall submit to the Sanitation District all monthly reports prepared by the Water District summarizing the 13 Groundwater Replenishment System Development,Operation and Maintenance Agreement September 2002,,,.. ptleredre - System's operation and maintenance activities. The Water District shall also submit to the Sanitation District all annual reports prepared by the Water District summarizing the System's operation and maintenance activities. The Water District shall also provide all other written reports prepared by the Water District regarding System management, operation, maintenance, asset management, and repair and long-term rehabilitation or replacement as the Sanitation District may reasonably request from time to time. 40. Annual Budgets. The Water District shall prepare and submit the annual budget for the System's operation and maintenance and capital expenditures prepared by the Water District to the Sanitation District for review. The Water District shall submit the annual budget for review each year not later than sixty(60)days before the Water District's governing board approves the Water District's annual budget. 41. Accounting. The Water District shall prepare and maintain accurate and complete books and accounting records for operation of the System in accordance with practices established by or consistent with those utilized by the Controller of the State of California for public agencies. Such books and accounts shall be maintained on the basis of a"fiscal year". The Water District shall provide to the Sanitation District annual accounting reports with respect to the System prepared by the Water District. The Sanitation District shall have the right to audit such books and accounts at any reasonable time at their sole expense. 42. Records and Reports.The Water District shall prepare and maintain accurate and complete records of all materials provided and services performed in connection with the operation and maintenance of the System. The Sanitation District shall have the light to inspect and copy all records of the Water District pertaining to all materials provided and services performed in connection with the operations and maintenance of the System during regular business hours on reasonable notice at the Sanitation District's sole expense. 43. Regulatory Reporting. The Water District shall have sole responsibility for preparing and filing all reports in connection with the System that may be required by applicable laws and/or regulatory agencies. The Sanitation District shall provide such Information as necessary for the preparation of such reports as may be reasonably requested by the Water District. 44. Annual Independent Audit. Either Party may request, no more than once a year,an Independent auditor or a team of Sanitation District and Water District supervisors to perform an audit of the System's operations. The purpose of the audit is to assure the long-term adequacy of the System. Each Party shall pay for one-half of the cost of any such audit. 45. Insurance. Each Party shall fumish and maintain,the following insurance coverage, provided that such coverage is available on commercially reasonable terms: 14 Groundwater Replenishment System Development,Operation and Maintenance Agreement Septembsr37e02_.. Delmee:e (a)Workers'Compensation In accordance with the Workers' Compensation Act of the State of California—Minimum of$1,000,000. (b)Public Liability, in the form of $2,000,000 Combined Single Limit either Comprehensive General per occurrence,with$5,000,000 Liability or Commercial Liability aggregate for bodily Injury,death and written on a peroccurrence property damage basis (c) Automobile Liability, $1,000,000 combined single limit per including non-owned and hired occurrence vehicles Each Party shall name the other Party as an additional named insured on all of the above listed policies(other than Workers Compensation). Each Party shall furnish certificates of insurance showing coverage to the other Party. Where a Party, by its Board of Directors approval,has elected to partially or fully self-Insure any of the above required coverages, it shall provide to the other Party all the relevant written policies and actions to establish said programs. ... arrmemed:e,eeb ak Numeaeg 46. Reclaimed Water Service To The Sanitation District. The Water District may deliver Reclaimed Water to the Sanitation District on the terms and conditions set forth in this Agreement, provided however,that the Water District is not obligated to deliver any specific quantity of Reclaimed Water to the Sanitation District. 46.1 Cost of Reclaimed Water. During the period of July 1,2001 through June 30,2002 the Sanitation District has paid to the Water District one hundred and fifty dollars($150)per acre-foot for Reclaimed Water that the Water District delivers to the Sanitation District. This rate shall be adjusted as of June 30,2002 and annually thereafter by the lower of(I)the change in the U.S. Consumer Price Index for Los Angeles—Riverside—Orange County for the preceding year a(il)2.5%. ... rxtetea:a 48.2 OuaIIN of Reclaimed Weer. Subject to Section 59,ihe_Redaimed...... Water to be provided to the Sanitation District by the Water District shall meet the Reclaimed Water Standards and shall be reclaimed by tertlary treatment or other effective disinfection treatment that is acceptable to both of the Parties. 46.3 Minimum Delivery of Project Reclaimed Water. Until January 15, 2012, the Water District may deliver,and the Sanitatlon District shall accept if delivered, Reclaimed Water on a continuous basis of not less than 4.2 mgd average, calculated on a yearly basis.Water District shall deliver Reclaimed Water to the Sanitation District at a pressure of no less than 105 pounds per square inch(105 psi). Sanitation District warrants that flow demand requirements shall be a minimum of 1000 gpm daily average and not exceed an instantaneous maximum flow for the Sanitation District's Reclamation Plants 1 and 2Fom4ined_of 3500gellons_par_minute_t5_mgd1,_The,Water ...... twatedr District,with thirty(30)minutes advance notice to the$aniletian District,may suspend 15 Groundwater Replenishment System Development,Operation and Maintenance Agreement Seplember12,2002. ._ . pelatetl:e _. J deliveries to the Sanitation District if the secondary effluent from the Sanitation District does not meet the requirements for Specification Influent. The Water District may resume deliveries when the secondary effluent meets the requirements for Specification Influent for a period of at least two(2)hours.After January 15.2012.the minimum average daily requirement shall no longer apply. 46.4 Ownership of Green Acres Prciect Reclaimed Water Facilities. Sanitation District shall own,operate and maintain at its own expense all wastewater treatment facilities that Ile within the boundaries of its two plants,specifically excluding the Water District's pump station at Plant No. 1 and metering facilities at Sanitation District's Plant No.2. Water District shall own,operate and maintain at its own expense all other reclaimed water facilities that are part of the Green Acres Project. Sanitation District shall,on behalf of the Water District, be responsible to operate and maintain the reclaimed water service pipeline and Its appurtenances that lie within the right-of-way of the Sanitation District's Interplant Utility Corridor. Sanitation District shall be reimbursed by Water District for costs incurred for operating and maintaining the pipeline. WaMar9 47. Quality of Reclamation Plant Waste. Subject to Section 5-%tlh_e_ District warrants that the quality of waste stream discharge from the AWT Facilitiesanif the Green Acres Project reclamation plant shall conform to all of the Sanitation Distict'a current and future water quality standards and regulations,......................_...___.................... .- DBleteah.. 48. Discharge of Excess Reclaimed Water. Until January,2012,during certain winter months,Water District will have excess Reclaimed Water for discharge into the Sanitation District's ocean outfall, as a condition of the Water District's"Basic Integrated Reuse Project Agreement,"dated July 17, 1996,with Irvine Ranch Water District("IRW D")and City of Newport Beach.The discharge may be up to four(4) million gallons per day. The cost of constructing the discharge pipeline connecting to the ocean outall,the cost of metering facilities,the cost of monitoring, and the unit cost for discharge to the outall shall be borne as agreed pursuant to the Agreement for Operation of Green Acres Project Interfie and Outall Connection,dated April 15, 1998, by and among the Sanitation District,the Water District, IRWD and the City of Newport Beach. 49. Metering. Measurement of Flows and Invoices. Sanitation District agrees that at the Sanitation District's locations where Reclaimed Water is used exclusively,the Water District, at Its own expense,shall provide a control valve(or valves)and a meter for the purpose of measuring the quantity of Reclaimed Water delivered under the terms of this Agreement. Sanitation District acknowledges and agrees that the Water District may read the Reclaimed Water service meter(s)and record Reclaimed Water usage for Sanitation District on a monthly basis. Sanitation District shall provide all necessary assistance to the Water District in gaining access to the service meter(s)to take readings. Sanitation District shall pay promptly on receipt (in accordance with its regular payment practices)all Invoices or water billings received from the Water District for Reclaimed Water service.The Water District shall pay the City of Fountain Valley and/or Huntington Beach any meter reading charges mandated by either City. 16 Groundwater Replenishment System Development,Operation and Maintenance Agreement September&;&. .... oeleeedte 50. Water Quality Monitoring. The Water District shall establish, implement and maintain a water quality monitoring program for the following: (a)the wastewater delivered from the Sanitation District to the Water District pursuant to Section 54 of this Agreement; (b)the waste streams discharged from the AWT Facilities and the Gre ,,,..,.... or.aat a Acres Project and delivered to the Sanitation District pursuant to Section 56 of this en Agreement; and c the Reclaimed Water that the Water District will deliver o the ....._.. seleo.ars g O g...__....... � Sanitation District pursuant to Section 48 of this Agreement. The monitoring program shall include daily turbidity samples for a(tbrine wastes._ ......... twaew:s 51. Independent Contractor Status, The Parties agree that, in operating and maintaining the System,the Water District is,and shall be,acting at all times as an independent contractor, and all employees of the Water District are solely employees of the Water District and not the agents or employees of the Sanitation District. The Parties further agree that, in operating and maintaining the facilities to provide Specification Influent to the System,the Sanitation District is,and shall be,acting at all times as an independent contractor,and all employees of the Sanitation District are solely employees of the Sanitation District and not the agents or employees of the Water District. 52. Costs of Addressing Newly Discovered Contaminants. Notwithstanding the Sanitation Districfs obligation to deliver Specification Influent to the Water District at the Sanitation District's sole cost as described below in Section 5&the Water.District_...,_,... celeeed:a shall pay fifty peroent(50 l of any 6c666,ionand mainlenence.andlor capital cosls�n...._..... or.eed: excess of the costs of regular disinfection.lhe(rnsy be necesesry to remove n- nitrosodimethylamine("NDMA"), 1,4 Dloxane and anyfleWly Discovered Contaminants.. ..... nretedt• from wastewater to be provided to the Water District under this Agreement. Parties shall meet to determine the most effective method of addressing such :� � , contaminants. If the Parties cannot agree,any dispute will be resolved pursuant to ��:roroamoaea aN1B Section 85�........................... ............... Arsenent•Near pieogwrea Connie M'ahae mmn 53. Other Costs. In the event that new quality or quantity discharge e.i.reo mmnae�e inmo�a limp requirements are Imposed by law or regulation that increase the cost to either Party to w cranes weeny GMw water perform its obligations under this Agreement,the Parties shall meet to determine the i eminwoashmesyamm,e,etere most effective method of addressingsuch requirements. If the Parties cannot agree, np1 g11O""t'idemmsa in anyern,e 9wmroiahki•ewmie l..,ry any dispute will be resolved pursuant to Section 86.. The coe_tofa_d_dre_asingauch............ reaerei or atom amen iorei.ana u,at requirements shall be shared equally by the Pardee. `: ,B1tliB,,,reriai�'n°i tYW wo"n,� • reguNbre almr Ue eeective deb or B. The Sanitation District's Operations and Maintenance Obligations. eta Agreereem.or(x)ereneely dlw nxJlntle Sysbre•e ': wdaiw ulernrareesyst erewugM1 54. Delivery and Quality of Wastewater. The Sanitation District shall make rewbeeae a!Aeaeum emy 'Sgecification Influent available from the Sanitation_District's Reclamation Plant No. 1 to •`•:, ��tmeYeOtewenneeft °flBC"eB the Water District for the System and-Green Acres Project. '•,, oeaam a Until such time as the System is Operational,the Sanitation District shall Mabel:4 make available to the Water District six(6)mgd of Specification Influent for the Green ramuteed:aulh6and Nure ng Acres Project and ten(10)mgd of Specification Influent for Water Factory 21. Dtlatad: 17 Groundwater Replenishment System Development,Operation and Maintenance Agreement September!&,200g_.... oetNabe:e - Thereafter,the Sanitation District shall make Specification Influent available in accordance with the table below. Anticipated Source of Normal Operation Peak Flow Plant No. 1 Secondary (Include!Green Aces Proler3l Conditions Treated Wastewate Activated Sludge Plant 80 mgd Up to 80 m d Trickling Filters: 24 m d Up to 48 mgd Total: 104 an d Total: Up to 128 an d . petered:se The Sanitation District shall use,all reasonable.efforts_to directthe highest.......,;::- pNeted:sett quality wastewater to the Sanitation District's Plant No. 1 for treatment a transmission smission to the System, bypassing lower quality wastewater where possible to the Sanitation's District Plant No. 2. The Sanitation District shall not use wastewater from the Santa Ana River Interceptor Line as source water to the System. The"quality"of wastewater for purposes of this section is based on those factors that adversely affect the performance of the System or Green Acres Project,such as total dissolved solids. The Sanitation District shall confer with the Water District if the Sanitation District intends to make a major change in the source of wastewater,future planning, operations or chemical use for Plant No. 1 at least thirty(30)days before such a change. Nothing in this paragraph shall alter the Sanitation District's obligation to provide Specification Influent in the quantities described above. IwslWrahaarq Maraieing 55. Industrial Pretreatment and Pollution Source Control Program. The Sanitation District shall maintain a comprehensive industrial wastewater pretreatment and pollutant source control program for controlling the discharge of wastes from point sources that could adversely affect the System's water quality or production. The Sanitation District shall comply with all applicable legal requirements with respect to its source water control program. 56. Acceptance of Waste Brine. Microfilter and Green Acres Protect Return Flows. The Sanitation District shall,at no charge to the Water District,accept waste streams discharged from the AWT Facilities(or from Water Factory 21, prior to the System becoming Operational)and the Green Acres Project according to the following capacities: Waste Re act Stream Normal Operation Peak Flow indudet Green Acres Project) Conditions 18 Groundwater Replenishment System Development.Operation and Maintenance Agreement Septwnber3._2002 prreeama Microfiltration Return Up to 12 mgd Up to 24 mgd Brine o Outfall UP to 17.5.mgd UP to 17. .- rwr.era cart s s Green Acres Project Return Up to 1.5 mgd Up to 1.5 mgd• GAP return may be zero because GAP plant is anticipated to be out-of-service during the winter. In addition,the Sanitation District shall accept"start-up"water generated by the AWT Facilities and periodic well"regeneration water'. Start-up shall be closely coordinated with the Sanitation District to prevent plant disruptions. Well regeneration water shall not be delivered during anticipated peak flow events. -. navmtdd:errs ar wmWmp 57. Further Conditioning or Treatment of Brine to be Dischamed to the Sanitation District's Duffel. If the Sanitation District's outfall NPDES permit requires conditioning or further treatment of brine accepted from the Water District by the Sanitation District pursuant to Section%before it ran be discharged to the SanitationJealousies.. i District's outfall, (a)the Parties shall each pay fifty percent(60%)of the capital costs of any system or equipment necessary to perform such conditioning or further treatment. and (b)the Sanitation District shall pay all operation and maintenance costs of such conditioning or further treatment. 56 Costs of Specification Influent. Except to the extent provided in Sections 5Zand 33,-the Sanitation District shallpay alloperations andmaintenance___-_____..- preteritr costs of providing Specification Influent as described in Section 5gof this Agreement ___ The Sanitation District shall reimburse the Water District for all incremental operations - aererea and maintenance costs of treating Peak Flows of Specification Influent to meet the System Effluent Standards. 59. Costs of Addressing Newly Discovered Contaminants. Notwithstanding the Water District's obligation to operate and maintain the System at its sole cost as described above in Sections 24and 2_%_the Sanitation District shaltpay fiflypercent______. _.- oreleer (50%)of any operation, maintenance and for capital oms in excess of the costs of pupa a regular disinfection.that may be needed to remove n-nitrosodimethvlamher("NDM ....... pr,Mark lCOM 1.4 Dioxane and any Newly Discovered Contaminants from the wastewater provided to the Water District pursuant to this Agreement. 60 Compliance with Laws. In operating,managing, maintaining and repairing the facilities to provide Specification Influent to the Water District,the Sanitation District shall strictly comply with the requirements of all permits and licenses and all applicable federal,state and local statutes,ordinances,rules and regulations governing the operation and maintenance of such facilities. N. Term and Termination. 19 Groundwater Replenishment System ' Development,Operation and Maintenance Agreement September7&30M....... odrsrGil 61. Tem. This Agreement shall remain in force and effect for thirty(30) raWbde two>ne raemaiec years after its effective date. Within thirty(30)days after the twentieth(2&) anniversary of the effective date,the Parties shall jointly assess the condition of the System. Within thirty(30)days after the twenty-fifth (25s')anniversary of the effective date,the Parties shall meet to decide whether to extend this Agreement Any extension of this Agreement shall be done on mutually-acceptable terns and conditions. In the event the Parties do not extend the Agreement, the Water District shall, under the direction of the Joint Cooperative Committee, sgll off or liquidate the System and all ....-0 facilities and appurtenances thereto. The Water District shall also remove alt System fadlittes constructed on the Sanitation District's property. The proceeds of selling off or liquidating the System shall be used first to repay the Water District for all reasonable third party costs incurred in connection with the selling and/or moving the System facilities.The remainder, if any,shall be divided equally between the Parties. V. Events of Default;Dispute Resolution. .-. rom,attM:aWkbare xwMemg 62. Event of Default. The failure of a Party to comply with any provision of this Agreement that has a material and adverse effect on the other Party,except to the extent caused by a breach of this Agreement by the other Parry,shall constitute an Event of Default under this Agreement;provided, however,that the defaulting Party shall first have a period of thirty(30)days following receipt of notice from the other Party of such failure to comply to cure such failure, or if such cure cannot be effected within such thirty(30)day period, such period shall extend for a total of one hundred eighty (180)days,so long as the defaulting Parry is diligently trying to cure such failure throughout such period. 63. Consequence of Water District Default. Upon the occurrence of a Water District Event of Default arising out of a breach of Section 2&orMas a result of the__ osistee:e Water District abandoning the operation of the System that has not been aired in gdetae:at accordance with Section 622 and if fhe Pard"Are unable to n a agree uponother wayto......... t provide the Sanitation District with an outlet for its wastewater flows,the Sanitation District may elect to terminate this Agreement, acquire the AWT Facilities from the Water District for one dollar($1)and assume the_right and_responsibility to operate and___.--® maintain the AWT Facilities. In this event,Water District shall,for what would have been the remaining regular term of this Agreement, reimburse Sanitation District for the reasonable cost of operation and maintenance of the AWT Facilities to treat to the System Effluent Standards the minimum amount of Specification Influent for which the Water District would have had the responsibility to treat at its cos tpuiauan Atilt 6--____.__,__- Agreement,. ppon the ocourrenceofany.other Water District Event of Default Mat has__., gelratl:8semLoi not been cured in accordance with Section 63,the San..... Dtsfrict may pursue all_ '_ Deleted: .......... .. ... permed: legal and equitable remedies that may be available. 64_Consequence of Sanitation District Default. In the event that Sanitation odetre:t District cannot comply with its obligations in Section 54,_Sanitatign_District shaltpay for .... oa.eee,e Imported water to maintain the Seawater Barrier to the extent the duration of such non- compliance extends beyond thirty(30)days. Upon a Sanitation District Event of Default arising out of an intentional breach of its obligation to make Specification Influent 20 Groundwater Replenishment System Development,Operation and Maintenance Agreement September3FM------- available in the quantity set forth in Section 3,the Sanitation District shall pay for an amount of imported water equal to the average annual amount of Product Water produced by the System over the previous five(5)year period(or if the System has been Operational for less than five(5)years, over the period of the System's operation. The Sanitation District's obligation to pay for imported water shall expire upon the earlier to occur if(1)the end of regular term of this Agreement and (ii)the cur of the Sa oamm:a.a District's breach . The added cost of substitute water shall be calculated as the cost of imported water less the avoided operating and maintenance charges of producing the water through the System. Upon the occurrence of any Sanitation District Event of Default that has not been cured in accordance with Section 63,the Water District may..._,...- ovram:+ I pursue all legal and equitable remedies that may be available. 65. Dispute Resolution. Staffs of both Parties shall meet and use their best efforts to settle any dispute,claim, question or disagreement(a"Dispute")arising from or relating to this Agreement. To that and,staffs of both Parties shall consult and negotiate with each other in good faith and, recogniang their mutual interests, attempt to reach a just and equitable solution satisfactory to both Parties. If the Parties do not reach such a solution within a period of thirty(30)days after the first meeting of the staff regarding a Dispute, then the Parties shall convene a meeting of the Joint Cooperative Committee within sixty(60)days after the first meeting of the staff regarding a Dispute and attempt to settle the Dispute before the Joint Cooperative Committee at the meeting. If the Parties do not settle the Dispute within five(5)calendar days after the Joint Cooperative Committee meeting,either Party may pursue any and all legal and equitable remedies that may be available. VI. Miscellaneous _ -- romveea au0aaatl rormeelne 66 Joint Cooperative Committee Review of Operations. The Parties shall convene the Joint Cooperative Committee annually to review and assess the System's technical and financial operations. The Joint Cooperative Committee shall make any recommendations regarding System operations to the respective governing boards of the Water District and the Sanitation District that it deems appropriate. 67. Force Maieure. Neither Parry shall be deemed to be in default where failure or delay in performance of any of its obligations (other than payment obligations) under this Agreement is caused by floods,earthquakes,other Acts of God,fires,wars, riots or similar hostilities, actions of legislative,judicial, executive or regulatory government bodies or other cause,without fault and beyond the reasonable control of such Party. If any such events shall occur,the time for performance by either Parry of any of its obligations hereunder shall be extended by the Parties for the period of time that such events prevented such performance. Upon the occurrence of an event of Force Majeure,the affected Parry shall: (i)promptly notify the other Party of such Force Majeure event,(ii)provide reasonable details relating to such Force Majeure event and (iii)implement mitigation measures to the extent commercially reasonable. 68. Indemnities. 21 Groundwater Replenishment System Development,Operation and Maintenance Agreement Saptambef]a,.20112 _.... oaerfd:a _ 68.1 The Sanitation District's Indemnity. The Sanitation District shall fully indemnify the Water District and its respective directors,Joint Cooperative Committee members, employees and agents against, and hold completely free and harmless from, any cost,expense, claim,demand,judgment, loss,injury and/or liability of any kind or nature,including personal or bodily injury, death or property damage("Losses"), that may arise from (i)any grossly negligent act or omission of the Sanitation District related to construction of the System or the construction and operation of the facilities used to provide Specification Influent to the Water District or(ii)any claim made by a Sanitation District employee specifically retained to provide services with respect to the facilities used to provide Specification Influent. 68.2 The Water District's Indemnity. The Water District shall fully indemnify the Sanitation District and its respective directors,Joint Cooperative Committee members, employees and agents against,and hold completely free and harmless from, any Losses,that may arise from(1)any grossly negligent act or omission of the Water District related to the System's construction, management,operation,maintenance or repair,except for costs,expenses,claims,demands,judgments, losses, injuries and/or liability arising from any grossly negligent act or omission of the Sanitation District related to construction of the System or(ii)any claim made by a Water District employee specifically retained to provide services with respect to the System. ., ptlaRtl: 68.3 Joint Indemnity. Except as provided in Sections 6Q,1 and 642,each -:... Weise:r Party shall indemnify the other Party and its respective directors,Joint Cooperative Committee members,employees and agents against,and hold completely free and harmless from,any Losses (including liabilities under the System Contracts and contracts for the Related Facilities,as applicable)arising from the design and construction of facilities pursuant to this Agreement;provided however that such indemnity shall be made only to the extent necessary to allocate such Loss between the Parties in a proportion equal to the Parties'cost-sharing obligations under this Agreement with respect to the design and construction of the facilities out of which such Loss arose. 69, Notices. All notices to the Sanitation District required or permitted under this Agreement shall be in writing and shall be deemed delivered (i)when delivered in person, (ii)on the third day after mailing, if mailed, postage prepaid, by registered or certified mail (return receipt requested);(iii)on the day after mailing if sent by a nationally recognized overnight delivery service which maintains records of the time, place,and recipient of delivery; (iv)upon receipt of a confirmed transmission,if sent by telex,telecopy or facsimile transmission;or(v)via electronic mail provided the sender's system is capable of creating a written record of such notice and its receipt in each case to the parties at the following addresses or to other such addresses as may be furnished in writing by one party to the other: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 22 Groundwater Replenishment System Development,Operation and Maintenance Agreement September 1 ,?,_]00x Telecopier: E-Mail: Attention: General Manager With a copy to: District General Counsel,who is presently: Thomas L.Woodruff,Esq. Woodruff, Spradlin R Smart 701 South Parker Street,Suite 8000 Orange,CA 92868 Telecopier. E-Mall: All notices to the Water District required or permitted under this Agreement shall be in writing and shall be deemed delivered(1)when delivered in person, (it)on the third day after mailing,if mailed, postage prepaid, by registered or certified mail (return receipt requested); (ill)on the day after mailing if sent by a nationally recognized overnight delivery service which maintains records of the time,place,and recipient of delivery;(iv)upon receipt of a confirmed transmission, if sent by telex,telecopy or facsimile transmission;or(v)via electronic mail provided the sender's system is capable of creating a written record of such notice and its receipt in each case to the parties at the following addresses or to other such addresses as may be furnished in writing by one parry to the other: Orange County Water District 10500 Ellis Avenue Fountain Valley, CA 92708 Telecopier: E-Mail: Attention: General Manager With a copy to: District General Counsel,who is presently: Clark Ide,Esq. General Counsel Orange County Water District 10500 Ellis Avenue Fountain Valley, CA 92708 23 Groundwater Replenishment System Development,Operation and Maintenance Agreement SWbmber20g2_..... iMtltl:a - Telecopier: E-Mail: ' romatled:BUAe[saM NumteNi9 70. Successors And Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, representatives, successors and permitted assigns. 71. Further Acts and Assurances. The Parties agree to execute, acknowledge and deliver any and all additional papers,documents and other assurances,and shall perform any and all acts and things reasonably necessary, in connection with the performance of the obligations hereunder and to carry out the intent of the Parties. 72. Captions. The captions in this Agreement are inserted only as a matter of convenience and reference and in noway define, limit or describe the scope or intent of this Agreement nor in any way affects this Agreement Words of any gender in this Agreement shall be held to include any other gender and words in the singular number shall be held to include the plural when the sense so requires. 73. Severability. Should it be found that any part of this Agreement is illegal or unenforceable, such part or parts of this Agreement shall be of no force nor effect and this Agreement shall be treated as if such part or parts had not been inserted. 74. Entire Agreement. All previous negotiations had between the Parties hereto and/or their agents or representatives with respect to this Agreement are merged herein and this Agreement alone fully and completely expresses the Parties'rights and obligations. 75. Modifications In Writino. This Agreement shall not be modified in any manner except by an instrument in writing executed by the Parties or their respective successors in interest. 76. Interpretation. Each of the Parties hereby waives any provisions of law to the effect that an ambiguity in a contract or agreement should be interpreted against the Parry that drafted the contract,agreement or instrument. 77. Governing Law. This Contract shall be governed by and construed according to the laws of California. 76. No Third-Party Beneficiaries. Nothing in this Agreement is intended to create any third-party beneficiaries to the Agreement, and no person or entity other than the Parties,and the permitted successors and assigns of either of them,shall be authorized to enforce the provisions of this Agreement. 24 Groundwater Replenishment System Development,Operation and Maintenance Agreement September 3 2002 79. Assignment. Neither Party may assign its interest in this Agreement without the prior written consent of the other Parry. 80. Representation and Warranties. No representations or warranties are made or have been relied upon by either Party other than those expressly set forth herein, if any. 25 Groundwater Replenishment System Developmerq Operation and Maintenance Agreement September-,.RW Yeleee4• IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first written above. ORANGE COUNTY SANITATION DISTRICT By: Chair, Board of Directors Date: By: Secretary, Board of Directors Date: APPROVED AS TO FORM: Thomas L.Woodruff District Counsel Orange County Sanitation District ORANGE COUNTY WATER DISTRICT By: President, Board of Directors Date: By: General Manager Date: APPROVED AS TO FORM: Clark Ids General Counsel Orange County Water District 26 Groundwater Replenishment System Development,Operation and Maintenance Agreement Septembsrl 2pg2 .. geadea:6 Exhibit A Definitions 1. "AWT Facilities"means the advanced wastewater treatment facilities to be constructed by the Parties on the Water District's and Sanitation District's property in Fountain Valley....................................................................................... Dateeea:aaen�aln Ranaalp ...... . . . . . . . . ....................... ...... .. .. .. ............. ........................L. 2. "CgopereGve AgreemenP means the Cooperative Agreement for Protect t•, Planning for Orange County Reclamation Protect.entered into by the Parties in �•` t February of 1997. teamemm:e,ANs ma raaabmle 11:,':, DahtW[Isdehletl Wl RedWC 3_ "Effective Date"means the date of this Agreement. sum.mad[stassand Rumberbv 4_ "General Managers"means the general managers of the Water District and the t;t: Sanitation District. f.- z Delataf:1.deamd In RecitalE 5_ "Governing Boards"means the Board of Directors of the Water District and the i. re:meum:a,lledsam eumbemo Board of Directors of the Sanitation District. pyeeati;he,b„ee b Recital d 6_ "Green Acres Project"means the Water District's Green Acres wastewater . sham°:Is eeanee In Ream e reclamation facility. y// esmntead:euueb:era thurberme Dekesil;is deaed in Section 7. "Groundwater Replenishment System"or"System"means the system more ftneamed:WIda and Numbabe specifically describe in Exhibit B wnnateed:Wools and Rune es, 8_ "GW R Pipeline"means the pipeline to be constructed to convey Product Water 4 wmuebcd:auiWa ram Rumbedes from Fountain Valley to the Water District's spreading basins. ' Fonn0t0e0`ellk°aId wumbenng ' Otlabetl:Is 9. "Joint Cooperative Committee"means the Joint Cooperative Committee ' Waited:deened previously established under the Cooperative Agreement and continued under romumM:wiets and numbering this Agreement. rolmetmd:asika sari aumbem�y 10. "NTU"means nephelometric turbidity unit,as defined in the latest issue of Standard Methods for the Examination of Water&Wastewater as Published by the American Public Health Association.the American Water Works Association and the Water Environment Federation. 11. "Newly Discovered Contaminants"is defined as contaminants found in wastewater that are or could be introduced into the Orange County Groundwater Basin throuoh the System,that are not currently,identified in any of the Water District's wells above any federal or state action level, and that either(1)are assigned a new drinkino water action level, by federal or state regulators after the effective date of this Agreement,or(2)are newly discovered in the System's wastewater or product water through new testing methods that only become available after the effective date of this Agreement. 27 Groundwater Replenishment System Development,Operation and Maintenance Agreement September d_1„_2002_ bdated:e 12. "Operational"is defined as the condition whereby the System has been Installed and tested,and startup activities have been completed,such that the System is ready to process Specification Influent. Following attainment of Operational status,the System general contractor may have ancillary and non-critical construction yet to complete(e.g. landscaping,subsequent demolition). The Water District shall notify the Sanitation District when the System is Operational. 13. "Peak Flows"shall mean flows of Specification Influent accepted by the System in excess of the [one hundred and four(104)modl up to a maximum one hundred and twenty-eight(128)mad: provided, however, that commencing upon the earlier of(I)fortvcioht(48)hours after the System commenced accepting Peak Flows of Specification Influent in excess of one hundred and four(104) mod.and(ii)the time at which the Sanitation District reduces the flow of Specification Influent to the System to below one hundred and four(104)mad. "Peak Flows"shall be limited to one hundred and four(104)mad for the subsequent one hundred and twenty(120)hour period______________ oddea:ldea:ad Nsadbnp. 14. "Product Water"means water produced by the AWT Facilities. 15. "Reclaimed Water"means water meeting the Reclaimed Water Standards. 16. "Reclaimed Water Standards"meanslecypledwater meeting.ihelatestadopted .... wm:l version of the California Code of Regulations,Title 22,Division 4,Chapter 3 entitled'Water Recycling Criteria"as set fortis in Section 60304 with respect to filleroffluenC........................................................................... iweeed:l 17. "Related Facilities"means the upgrades to the trickling filters and Ellis Avenue Pump Station and related diversion facilities pe compleled.by the Sanitation ___ oae.a: District pursuant to this Agreement. 18. "Specification Influent"means secondary treated sewage that(1)complies with the the latest adopted version of the California Code of Regulations,Tlfle 22, Division 4, Chapter 3 entifled'Water Recycling Criteria"pnd_(ii)_h ' a turbidity______...- odatech sn.nd peam that does not exceed(A)five(5) NTU on average when.mea d d over(tie ... . .. ......... Me epbw wGm My walemby previous thirty(30)days or(e))en(10jNTU on an Instantaneous basis Qn each..% ew Ste Dwa Wrem erdedu case measured pursuant to the requirements of Section 60301.630 of Tide 22). same.w Redcoat w°mrouamr In cases of conflict between these criteria,the more restrictive numbers shall Conbd B001tl apply. belated: [aeedmddMem odelad:l 19. "System"means the Groundwater Replenishment System,the components of belated:I which are described on Exhibit B. 20. "System Budget"means the budget adopted by the Parties pursuant to Section 10. 21. "System Contracts"means all contracts and chance orders necessary for planning,design and construction of the System.including professional service 28 Groundwater Replenishment System Development.Operation and Maintenance Agreement Septembwl&; 2 pwtexs contracts,wnstruction contracts and other contracts _ - ndnaa:I.ameatisamme 22. "System Effluent Standards"means the treatment standards to permit Product Water to be discharged into Santa Ana River as set forth in the NPDES Permit for the System. 23. Wastewater Utilization Agreement"means that certain Second Amended and Restated Agreement for Utilization of Rec aimed Wastewater, entered into between the Parties on January 15. 1997_.......................... odeeea:m a.m.a mReddr e I 29 Groundwater Replenishment System Development,Operation and Maintenance Agreement BePtamhar]�2005........ oYabed:e - Exhibit B Groundwater Replenishment System Description Webbed:M aynam is a wear The. roect willconsist of threema"or.com_onents:___1 AWT Facilitiesantl um Jn supply wolec:loinby spdmond by P .J .. . .... . . . . .1 P.. . (.).._........._.. ...._.......P.. .P. 9.......' aw Were,Dhma bad me sermon stations, (2) a pipeline to recharge facilities, and (3)a pipeline to Injection wells for the Dhbkr. Aprinumobjearveofma barrier. Highly treated wastewater(secondary effluent)that would normally be praleaisadeveiopamarouaxal discharged to the ocean will be pumped from the Sanitation District Reclamation Plant Wlrepa1Bh1e,man ranw ear niea aw orenpe Coum, No. 1 to the GW R System AWT Facilities where it will he treated to drinking water cmaaw.ar aerinaM expend me standards, using membrane and disinfection processes. Depending upon specific edWap Tabs"cap seewear Inbudon Male, A,omar major seasonal demands, recycled water will be pumped to an existing recharge basin in oblectwislopmddupeak now Anaheim and to the seawater intrusion barter in Fountain Valley and Huntington Beach. digmaindelani postao.ma new, The System will produce approximately 72,000 afY Future phases will be implemented 10mpan'ae m email by dlaamre ueaaawaeawaarnewsmYwowd as anticipated demands for recycled water are realized. ouwmuebe draperies!a me Paanc Open 9 1. AWT Facilities Influent Diversion Source water will be secondary effluent diverted from the Sanitation District's Plant No. 1 to the GW R System AWT Facilities. Influent source water will fiow through fine-mesh screens or strainers, and a large diameter pipeline to the AWT Facilities. Mlcrofiltration • Mlcrofiltration(MF)will be used as a pretreatment process ahead of the reverse osmosis(RO)process. All Influent(secondary effluent)flows pass through miroporous membranes to remove bacteria and suspended solids. • The capacity of the MF will be 86 MGD (normal flow)and 112 MGD (peak flow) • The MF will consist of a submersible vacuum pressure driven system • The MF operates at approximately 90% recovery. The waste stream,or backwash, will return to the Sanitation District's Plant No. 1 Reverse Osmosis • The RO process will be designed to produce 70 mgd. The RO system will treat MF filtrate and is designed to operate at approximately 85%. • Peak flows beyond the 70 mgd RO capacity will bypass the RO system for non- reuse discharge to the Santa Ana River 30 Groundwater Replenishment System Development,Operation and Maintenance Agreement September 32oa2 odeted:e • The waste stream from the RO process, brine,will be discharged to the Sanitation District's ocean oulfall Ultraviolet Light Disinfection and Treatment • Ultraviolet(UV)light will be used for disinfection and destruction of Nitrogen- nitrosodimethylemine(NDMA)for the System • UV will treat 70 MGD of RO permeate for disinfection/organic destruction • UV will disinfect 70 mgd (normal flow)and 100 MGD(peak Bow) Post-treatment • Post-treatment will feature decarbonators and lime addition. To protect the downstream pipelines, a portion of the RO permeate will pass through decarbonator towers to remove excess carbon dioxide. Lime will be added to stabilize the final product water. Product Water Pump Station and Barrier Water Pump Station • Two pump stations will discharge final product,or recycled water to the recharge basins in Anaheim and to the seawater barrier in Fountain Valley and Huntington Beach • Standby pumps will be provided for redundancy • The peak capacity of the Product Water Pump Station will be about 55 mgd. The peak capacity of the Barrier Water Pump Station will be about 42 mgd. • Both pump stations will be expandable to accommodate future project phase • Groundwater Replenishment System Pipeline and Recharge Facilities 2. The GWR Pipeline • The pipeline from the AWT Facilities to the recharge facilities will be 60 to 78 inches in diameter and approximately 14 miles long • The pipeline will exit the south side of the AWT Facilities site at Garfield Avenue and travel directly east to the Santa Ana River. At that point, it will follow an alignment along the westerly levee of the Santa Ana River from Fountain Valley to Anaheim. From the Santa Ana River, the pipeline will extend along the Carbon Creek Canyon Diversion Channel to Kraemer Basin, one of the Water District's existing spreading basins. 31 Groundwater Replenishment System . Development,Operation and Maintenance Agreement September l 3.30112 oeterm:e • A standby turnout and pipeline will be provided for discharge to Miller Basin,which is adjacent to Kraemer Basin 3. Barrier Pipeline and Injection Wells • The barrier supply pipeline will be extended to serve eight new injection wells. The existing barrier pipeline will be extended to the west along Ellis Avenue and from the AW T Facilities site south in Ward Street to the Santa Ana River,then south along the river to near Adams Avenue. Four new injection well sites will be added west of Newland Street along Ellis Avenue. Another four new injection wells will be added along the west bank of the Santa Ana River,just north of Adams Avenue. Phasing and Recycled Water Production The total recycled water production for each component is shown in Table 1. Phasing will be determined by project flow requirements for anticipated water demands for three types of reuse: recharge,seawater intrusion barrier,and supplemental water for the Green Acres Project. The System will produce recycled water for spreading and barrier uses. Table 1 Water Production Estimated Water Production T of Use Total Barrier Recharge 135,000 1 37,000 172,000 A portion of water produced for recharge maybe available for other uses(such as supplementing the Green Acres Project)in future phases. 32 Groundwater Replenishment System Development,Operation and Maintenance Agreement September j&20a2_,..- - oeletetlea � Exhibit C Groundwater Replenishment System Cost Allocation and Related Facilities GWR Component Cost Allocation(eh) .,. tw.ad:wens Water Sanitation District District 1. System 50 50 2. Ellis Avenue Pump Station and D vefalon 0 100 Facilities Uparades, 3. Trickling Filter Up-grades 0 100 4. Land Easements and Ri his of Way 100 0 33 GROUNDWATER REPLENISHMENT SYSTEM-PHASE 1 ESTIMATED COST OF WATER IS per Acre-Ft) EXHIBIT D - SYSTEM BUDGET AUG.2002 AVERAGE Anmral Water Producbon AFY :..000 Escalation to Midpoint of Construction varies Sz,br•v4--down Construction Contingency varies Scc o••:14Jnwn ELA Percant !aunt vasty ELA Contingency Percent Powel Role- &kWh 0!1-:+ Grant.(I.be received after 328/Ol) moon 3 OCSD Canmbutiun percent 50 SRF Loan Interest Rate percent 116 SRF Loan Time Period years Other Loan Interest Rate percent 4 I) Other Loan Time Period Yom .10 Ca a Au .2002 FACILITY m 5 milllorrs Construction Coat Estin ate (Includes e%construction contingency-no escalation) Facility/Contract Title AWT FaC®ties 5 275.000.000 Border FecUibas S 14,D00,000 GWR Pipeline $ 71,D00,000 OCIP 5 6.000,000 Replacement Wells 5 5.000,000 Total Consomcdon $ 371,000,000 Total ELA S 56000000 TOTAL CAPITAL COST S 427000000 Less Grams $ 00,M,238 TOTAL NET CAPITAL COST S 337,209,762 Less OCSD Contribution $ 168,604,881 Net OCWD Ce itel Coat $ 168604881 Amortized OCWO Ca Dal Cost $miU r $O 688 108 Annual O&M Cost(S mllfyr) Power 70 $ 6,625 000 Contract Maintenance 70 S 350,000 Chemicals 70 S 4,628,D00 Maintenance 70 .S 2,610.000 Membrmw Replacement 70 6 2,770,000 Lamp Replacement 70 S 240,DO0 Landscaping/Housekeeping 70 S 50,600 Compllane, 70 $ 1,500,000 Labor 70 $ 3,028,740 Total Annual O&M Coat $mf0 r S 21 06740 Total OCWD Annual Cost mil! $31493848 Unit OCWD Capital Cost(5/ary 135 Unit OCWD O&M Cost 6/e 303 Total OCWD Unit Cost(Stan 437 rMoaalwdlaar 8lnrBtima Wi"*NM 3NPlf.1 UoWlcm XLYwrnc IN A%=1W PnNeEm0an7ntY1J EXIEBIT A ORANGE COUNTY SANITATION DISTRICT THAT PORTION OF PARCEL 2 IN THE CITY OF FOUNTAIN VALLEY, COUNTY OP ORANGE, STATE OF CALIFORNIA, AS DESCRIBED IN THE FINAL ORDER OF CONDEMNATION TO ORANGE COUNTY SANITATION DISTRICT NO. 1 RECORDED FEBRUARY 23, 1967 IN BOOK 9183,PAGE.N,OF OFFICIAL RECORDS,IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY AND THAT PORTION OF PARCEL 4 AS DESCRIBED IN THE FINAL JUDGMENT IN CONDEMNATION TO COUNTY SANITATION DISTRICT NO. I RECORDED FEBRUARY 7, 1961 IN BOOK 5622, PAGE 146, OF OFFICIAL RECORDS, IN THE OFFICE OF SAID COUNTY RECORDER, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID PARCEL 2 ALSO SHING THE NORTHWEST CORNER OF SAID PARCEL 4; THENCE SOUTH 89034'21" LAST 50.00 FEET ALONG THE NORTH LINE OF SAID PARCEL 4; THENCE SOUTH 0"Wi'14" WEST 432.04 FEET; THENCE WEST 670.51 FEET TO A POINT, SAID POINT BEING ON THE PAST LINE OF TF.TF. EASPMENT TO"rHE CITY OF FOUNTAIN VALLEY, 15.00 FEET IN WIDTH, RECORDED TN IULY 30, 1984 AS INSTRUMENT NO. 84-313034, OF OFFTCIAI. RECORDS, IN THE OFFICE OF SAID COUNTY RECORDER, SAID EAST LINE BEING PARALLEL WITH AND 40.00 FEET EAST OF THE CENTERLTNE OF WARD STREET; THENCE NORTH 0006'27" EAST 437.04 FEET ALONG THE EAST LINE OF SAID EASEMENT TO A POINT,SAID POINT BEING ON THE NORTH LINE OF SAID PARCEL 2; THENCE SOUTH 89034'21" EAST 620.49 FEET ALONG THE- NORTH LINE OP SAID PARCEL 2'I'D THE POINT OF BEGINNING. THE AREA OF THE ABOVE DESCRIBED PARCEL TS 6.69 ACRES,MORE OR LESS. ALL AS SHOWN ON EN=TT'B'ATTACHED HERETO AND MADE A PART HEREOF. D SG c�54pJ� A 9 s fin` 4 0 S 0 64L 12-91-02 * No.7452 9� CAS Qp iD L/�-., `j- f l-02 O&M Agreement- Exhibit E-1 F EXHIBIT B WErCH 10 A=WAN4 LMk I)MMI M < ORANGE COUNTY SANITATION DISTRICT POINT OF BEGINNING VAR:-.EL ' NE CORNER, PCL 2 F:HAL ORDER. OF O.R. 8183/28 ^Re.HOE --OU4TY ieA?ER 31S?RiCT N89'34'211Y li N89.34'211Y 52D 49' `•0-00 NN W I \\+�� \`�\�\\ �\ a \ ♦ ` \ •z -f• -r c:s in XX 1 � •\ \`\` ' \\\\ `'-' �\\�\\, .a is 40' I I WEST 7: +t• 870.51 C"1 F —25' EAST LINE OF 15' WIDE `i• i IVALLEYEMT E C O.R.OF FOUNTAIN313034 VALLEY PER .R 84-313034 ,• - O NANO SG j Erp. 11-SI-P} a Na 7852 4 ;0 1 'lf OF CAO AREA = 6.69 ACRES scuE: �•=iro' O&M A re ment- Exhibit E-2 9-11-02 CSOAWIF.DWG SHEET i OF 1 ° Groundwater Replenishment System Development,Operation and Maintenance Agreement Sepdrnia-M40G2------- ss aad:a Exhibit F Peak Flow Notifications The Sanitation District shall follow one of the following notice procedures prior to providing Peak Flows of Specification Influent to the Water District. 1. Wet Weather Events. Sanitation District shall notify the Water District that the Sanitation District will be moving to Emergency Response Stage_(the Sanitation District to provide specific stage description); whereby the Water District shall initiate wet weather readiness procedures, including; (g)Confrm_alfprocass-and hydraoliq ..... otleteda units are ready to convey a-one hundred and twenty-eioht(128)mgd ffowfrom the- oetatrQ m too Sanitation District Plant No. 1; (�.Notify off-shift.plantoperations of_personnel Jo oncalt_...._ � ,x status; (g)-Mobilize allplant operations ofpersonnel_following receipt of ntioee that the--___._. pateeedca Water District has moved to Emergency Response Stage 2. Maintenance of Sanitation District Facilities [Discuss] 3. Emergency [SD to provide excerpts from its emergency response plan] 36 STEERING COMMITTEE Meedng Date To ad.of Dlr. 9/25/02 AGENDA REPORT IrtewN nber Item Number 73 , Orange County Sanitation District FROM: Blake P. Anderson, General Manager Originator: Jean Tappan, Committee Secretary SUBJECT: October Agenda Items for Consideration by Working Committees GENERAL MANAGER'S RECOMMENDATION Review with staff the agenda items tentatively scheduled for review by the Working Committees in October. 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 Committees in October: OMTS Committee: 1. Phase II Biotrickling Filter Demonstration Project, (budget amendment and Amendment 1 to agreement with UC Riverside) PDC Committee: 1. Ratify Change Order No. 1 to Job No. J-33-1 A, Standby Power and Reliability Improvements at Plant 2 2. Ratify Change Order No. 5 to Contract 5-46, Replacement of Back Bay Trunk Sewer 3. Approve PSA for preparation of EIR/EIS for Contract No. 2-41, SARI Relocation 4. Approve Addendum No. 5 to PSA for Job No. 1-2-4, Bushard Trunk Sewer 5. Receive and file Final Project Report on Job No. J-71-4, Odor Control Master Plan FAHR Committee: 1. Authorize COPS to reimburse CIP 2. 2002-03 Financial Plan Update 3. Consider Safely Policies 4. Consider HR Policies and Procedures Updates 5. Status of Meet and Confer 6. Consider Plan for Stakeholder Involvement in OCSD's Future: Community Outreach and Public Involvement Ascertainment 7. Consider Commercial Paper Program PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ 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 CEOA FINDINGS Not a project. ATTACHMENTS NA jt G. y,ft pmEal n0 Gmninea�M2 fill of la WwE Aa, nose Page 2 A STEERING COMMITTEE Me w/25Date 7o Bd.of Dir. fins/oz AGENDA REPORT I tcgm u wr Item Number Orange County Sanitation District X FROM: Blake P. Anderson, General Manager Originator: Jean Tappan, Committee Secretary SUBJECT: September 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 September 25 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 at the September 25 meeting: Actions from OMTS Committee 12.c.1. Approve funding for agencies that require additional flow monitoring and updates to Master Plans and Inflow and Infiltration Reduction Plans in the amount of$229,750. 12.c.2. Approve funding for the FY 2002.03 Cooperative Projects Project in the amount of$125,000 for the City of Anaheim 12.c.3. Approve time extensions for Cooperative Projects with Cypress, Fountain Valley, Garden Grove, La Habra, Orange, Santa Ana, Villa Park and 12.c.4. Authorize the General Manager to approve time extensions that include flow monitoring that are delayed because of lack of rain. 12.d.1-2 Issues re Phase II Microfiltration Demonstration Project, SP-90, as an alternative treatment to achieve secondary treatment standards 12.9. Adopt Resolution No. OCSD 02-18 in Support of Biosolids Recycling, and repealing Resolution No. OCSD 00-05. Actions from PDC Committee 13.c.1-2 Ratify Change Order No. 3 to Job No. J-80 and accept as complete 13.d.1-2 Ratify Change Order No. 2 to Job No. P2-85-1 and accept job as complete 13.e.1-2 Approve budget amendment and ratify Change Order No. 11 to Job No. P2-39 1311-2 Ratify Change Order No. 1 to Job No. SP2001-21 and accept job as complete 13.g. Ratify Change Order No. 1 to Job No. SP2000-59. 13.h. Ratify Change Order No. 1 to Job No. J-71-7 13J.1-2 Approve a budget amendment and ratify Change Order No. 4 to Job J-66 e 13.j. Approve PSA for Contract 1.10 13.k. Approve a budget amendment to Contract 7-7-2 7 13.1. Approve Addendum No. 1 to PSA for Job No. J-40-6 13.m.1-2 Approve a budget amendment and PSA for Job No. J-40-7 Actions from FAHR Committee 14.c. Receive and file Treasurer's Report for August 2002 14.d. Upgrade 3 positions not included during FY02-03 budget process 14.e. Actions re Internal Auditing Services 14.f. Approve budget amendment and issue change order for Coordinated Commercial Enterprise Study, Phase 11 and III Actions from GWRS Cooperative Committee 15.c. Approve Addendum No. 6 to PSA with CDM 15.d. Approve an OCWD task order to Westin Engineering for implementation planning for the Integrated Information System for GWRS Other Items 16.1-2 Receive and file Addendum No. 7 to Certified 1999 Strategic Plan Final Program Environmental Impact Report and authorize staff to proceed with Permanent Short-term Ocean Outfall Bacteria Reduction Project, Job No. J-87 17.1-3 Approve budget amendment, plans and specs and authorize General Manager to award a contract for Short-term Ocean Outfall Bacterial Reduction Project, Job No. J-87 18. Adopt Urgency Ordinance No. OCSD-19 PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ 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 U:Wq.tluYpenalveennp op HN WZSep�5M un MMsmr Sep eme...00p RWW: ONO Page 2 CEQA FINDINGS Not a project. ATTACHMENTS NA jt a%�a 9u daZt erg�119fWn$YpNWM2 by m on,for son a wry u aoo A«.,W: WM8 Page 3