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HomeMy WebLinkAbout2003-03 DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, March 26, 2003 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, March 26,2003 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 Nixon, Counsel FILED Shirley McCracken, Chair Don Hughes IN THE OFFICE OF THE SECRETARY Steve Anderson, Vice Chair Ryal Wheeler ORANGE M,1- .1----TnnON DISTRICT Jim Ferryman, Chairman, OMTS Committee Jennifer Cabral APR 2 3 2003 Brian Donahue, Chairman, PDC Committee Randy Fuhrman Brian Brady, Chairman, FAHR Committee Jan Vandersloot Jim Silva, County Supervisor Gerhardt Van Dne 'Y Norm Eckenrode, Past Board Chair STAFF PRESENT: Directors Absent: Blake Anderson, General Manager None Bob Ghirelli, Director of Technical Services David Ludwin, Director of Engineering Gary Streed, Director of Finance/Treasurer Carol Beekman, Communications Services Manager Jean Tappan, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS Randy Fuhrman questioned some of the statements made in the report on the septic system abandonment policy. He mentioned that he accompanied the biosolids audit team during its audit this past week and said that the auditors were Impressed with the District's operations. He also asked about a public letter writing campaign in an effort to seek federal funds for the District's planned secondary treatment facilities. (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the February 26, 2003 Steering Committee meeting were approved as drafted. Minutes of the Steering Committee Page 2 March 26, 2003 (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Shirley McCracken reported on the progress of the Legislative Advocacy Ad Hoc Committee that is meeting weekly. The committee is working with staff and consultants on the biosolids bill (AB 1427),ACA 10 (Hartman), as well as trying to secure federal funding. Chair McCracken also reported that she extended her stay in Washington, DC to meet with our consultants and the members and staff of the Orange County delegation to seek support for our program. Chair McCracken reported that there the Ad Hoc Committee re Urban Runoff will meet on Wednesday, May 7 at 3 P.M. (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson reported on the following issues: A. Proaress towards Achieving 30/30 Secondary Treatment Standards Our ocean discharge effluent quality continues to be in the mid-30s ppm for suspended solids and the mid-50s ppm for biochemical oxygen demand. B. Disinfection Update Disinfection is continuing and we are achieving state AB411 standards at the end of the ouffall. While our numbers are low, there are still elevated readings at the beach, particularly during high tide events when the storm channels are flushed out. C. State Budget Crisis There is nothing new to report. Special Districts are not being discussed as part of the solution to the state budget crisis. Staff will continue to monitor this. D. Proposed Special Board Meeting on April 16,2003 to discuss the Capital Improvement Program and the schedule for Achieving Secondary Treatment Standards David Ludwin reported that the CIP review has been completed. It is estimated that secondary treatment facilities will be completed by November 2012. The peer review panel will be preparing an independent report on our schedule, which will be given to the Board. A special focus meeting on the CIP schedule is scheduled for April 16 to give the Directors an understanding of how the schedule was developed and what it will mean to the District. The Committee determined that the April 16 meeting will begin at 6 p.m. Mr.Anderson stated that when the language of the bills has been finalized, public support will be sought. E. Orange County Business Council Dinner April 17 Mr.Anderson said that as members of the OCBC there is a table available for this event. The Steering Committee and key staff will be invited to get better acquainted with the business community and seek support for our legislative initiatives. F. Ocean Environment Issues at the April 23 Board Meeting Mr. Anderson announced that there will be a lengthy presentation at the April 23 Board meeting on three issues related to the ocean environment, including a report on the 2001 Huntington Beach Studies, our recent video taping of the ecosystem at the end of the outfall and an overview of the results of last year's ocean monitoring program. :.Minutes of the Steering Committee Page 3 March 26, 2003 G. New Feature at Board Meetings In an effort to help the Board become more familiar with some of the things that staff is involved with, there will be a series of presentations at the Board meetings on 'interesting things that are happening at the District'These will be presented from time to time. (7) REPORT OF GENERAL COUNSEL Counsel Tom Nixon did not make a report. (8) DISCUSSION ITEMS (Items A-D) A. Status of NPDES Permit Renewal and Negotiation Process Dr. Robert Ghirelli updated the Steering Committee on staff activities now that the CIP validation report has been completed and what can be expected in the next few months. When the schedule is approved by the Directors in April,staff will begin negotiations with the regulators on the compliance agreement along with General Counsel as lead. There will be multiple opportunities for public input during the review process. Dr. Ghirelli announced that on April 14 staff members from the Washington delegation will be at the District for a tour and a briefing on our program. Chair McCracken asked when Phase 2 of GW RS would begin and the potential for impacting our program to reach secondary treatment standards. Mr. Ludwin stated that the earliest we could provide water for Phase 2 would be in 2012. And if GW RS Phase 3 was constructed, it would require that water would have to be brought up from Plant 2. It was stated that there is no commitment to Phase 2 or 3 at this time. B. Consider recommending a policy for properties that abandon septic tanks and connect to sanitary sewers within the District that offsets the Capital Facilities Capacity Charge against the environmental and social benefits to the service area Gary Streed reported on the proposed policy and sought direction from the Committee on whether to move forward with the program. The Committee decided to table the issue because of the many policy and financial issues that need to be more thoroughly evaluated. C. The Agenda Items scheduled to be reviewed by the Board's working committees in April 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 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. Minutes of the Steering Committee Page 4 March 26, 2003 (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, April 23, 2003 at 5 p.m. The next Board Meeting is scheduled for Wednesday, April 23, 2003 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:10 p.m. in Closed Session, pursuant to Government Code Section 54956.9(c), to discuss one case of anticipated litigation and Section 54957.6 to discuss the General Manager's performance evaluation. Minutes of the Closed Session are on file with the Board Secretary. Confidential Minutes of the Closed Session held by the Steering Committee have been prepared in accordance with Government Code Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. A report of the recommended actions will be publicly reported at the time the approved actions become final. At 6:55 p.m., the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:55 p.m. S mitted by: J n appan e ing Committee Secretary c:iy.em�.,meurw,rq cw+��.neswvuwwoszatt am sc nfs„�a.aoc •` " ORANGE COUNTY SANITATION DISTRICT Atal 962-tat 1 p2Z17 F..: pt<I 962U 56 rww..ua.wm arlling.tlaress: Po &.6127 NOTICE OF MEETING F lain valley.ra 92729-9127 OF THE ..,apt"d.: STEERING COMMITTEE 10B Ellis Avenue 927006yoi6--7 ORANGE COUNTY SANITATION DISTRICT wamn.r °pens°` WEDNESDAY, MARCH 26, 2003 - 5 P.M. • crci.. Anaheim DISTRICT'S ADMINISTRATIVE OFFICE 8ree Baena Park 10844 ELLIS AVENUE lypress Fauntem Ualley FOUNTAIN VALLEY, CALIFORNIA 92708 Fa11i Beroen rave HVNipgrPn Beach abn L Hab e s Palma A regular meeting of the Steering Committee of the Board of Directors of _ ,np�8sa n Orange County Sanitation District will be held at the above location, date and aranga time. PlecenGA $anlB Qlld BBBI BBith 9amm� ustln Villa Park Ysrba Linde E..Atp 0 or.npe S.i Olwia.. Costa Mess Midway cdy Ill Isisprlcts bums Ranch To maintain worltl-class leadership in wastewater and water resource management. STEERING COMMITTEE AND BOARD MEETING DATES FOR THE NEXT TWELVE MONTHS Wednesday, March 26, 2003 Wednesday, April 23, 2003 Wednesday, May 28, 2003 Wednesday, June 25, 2003 Wednesday, July 23, 2003 Wednesday, August 27, 2003 Wednesday, September 24, 2003 Wednesday, October 22, 2003 Wednesday, November 19, 2003* Wednesday, December 17, 2003* Wednesday, January 28, 2004 Wednesday, February 25, 2004 Wednesday, March 24, 2004 *Tentatively rescheduled from regular fourth Wednesday. STEERING COMMITTEE (1) Roll Call: Meeting Date: March 25, 2003 Meeting Time: 5 p.m. Meeting Adjourned: Committee Members Shirley McCracken, Board Chair Steve Anderson, Board Vice Chair _ Brian Donahue, Chair, PDC Committee Jim Ferryman, Chair, OMTS 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 FinancelPreasurer...................... Lisa Tomko, Director of Human Resources....................... Greg Mathews, Administrative Services Manager............. Carol Beekman, Communication Services Manager......... Jean Tappan, Secretary.................................................... c: Lenora Crane AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, MARCH 26, 2003 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. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Board Secretary's office at(714)593-7130 at least 48 hours prior to the meeting to allow the District to make reasonable arrangements to ensure accessibility to this meeting. 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 specifc agenda items or matters of general interest should do so at this time. As determined bythe Chairman, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three minutes. Book Page I -2- March 26, 2003 Agenda Matters of interest addressed by a member of the public and not listed on this agenda cannot action taken by the Committee except as authorized by Section 54954.2(b). (4) APPROVE MINUTES OF PREVIOUS MEETING Approve draft minutes of the February 26, 2003 Steering Committee meeting. (5) REPORT OF COMMITTEE CHAIR A. Report on progress of the Legislative Advocacy Ad Hoc Committee (6) REPORT OF GENERAL MANAGER A. Progress towards Achieving 30130 Secondary Treatment Standards B. Disinfection Update C. State Budget Crisis D. Proposed Special Board Meeting on April 16, 2003 to discuss the Capital Improvement program and the schedule for achieving secondary treatment standards (7) REPORT OF GENERAL COUNSEL (6) DISCUSSION ITEMS (Items A-D) A. Status of NPDES Permit Renewal and Negotiation Process (Bob Ghirelli) B. Consider recommending a policy for properties that abandon septic tanks and connect to sanitary sewers within the District that offsets the Capital Facilities Capacity Charge against the environmental and social benefits to the service area (GaryStreed) C. Review Agenda Items scheduled to be presented to Committees in April (Information item only) D. Review and consideration of Agenda Items for Board of Directors Meeting of March 26, 2003 (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY Book Page 2 -3- March 26, 2003 Agenda (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 Book Page 3 4- March 26, 2003 Agenda (12) FUTURE MEETING DATES The next Steering Committee Nbeting is scheduled for 5 p.m., Wednesday, April 23, 2003. The next Board Meeting is scheduled for 7 p.m., Wednesday, April 23, 2003. (13) CLOSED SESSION During the course of conducting the business set forth on this agenda as a regular meeting of the Steering Committee, the Chair mayconvene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property, (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Directors during a permitted closed session and are not available for public inspection. At such time as final actions are taken by the Board on any of these subjects, the minutes will reflect all required disclosures of information. A. Convene in closed session to: 1. Confer with General Counsel-Anticipated Litigation. Calibmia Government Code Section 54956.9(c): One (1) potential case. 2. General Manager's Annual Performance Evaluation and Compensation (Government Code Section 54957.6). B. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session. (14) ADJOURNMENT jt G%MDTAN ENDMTEENIND COMMMEEWVMWgMn A ENOAOOC 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)765-5247(Anaheim City Hall) Committee Staff Contact: Blake P.Anderson (714)593-7110 General Counsel: Thomas L.Woodruff (714)564-2605 Secretary: Jean Tappan (714)593-7101 (714)962-0356 (Fax) E-mail: jtappan@ocsd.com Book Page 4 DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, February 26, 2003, 2003 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, February 26, 2003 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 Layne Baroldi Jim Ferryman, Chairman, OMTS Committee Mike Moore Brian Donahue, Chairman, PDC Committee Ryal Wheeler Brian Brady, Chairman, FAHR Committee Randy Fuhrman Norm Eckenrode, Past Board Chair Joan Irvine Smith Jan Vandersloot Directors Absent: Jim Silva, County Supervisor STAFF PRESENT: Blake Anderson, General Manager Bob Ghirelli, Director of Technical Services Carol Beekman, Communications Services Manager Jean Tappan, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS Randy Fuhrman complimented the ECM staff on their work towards moving to Class A biosolids. He also complimented the work of the Engineering Department on the work it has done on the CIP reassessment. Joan Irvine Smith expressed her appreciation for supporting the blue ribbon panel concept with NWRI. (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the January 22, 2003 Steering Committee meeting were approved as drafted. Director Jim Ferryman abstained. Book Page 5 (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Shirley McCracken reminded the members that the CASA Conference is going to be held at the Tenaya Lodge in Yosemite and reservations are due as soon as possible. Chair McCracken reported that she has asked staff to prepare a monthly listing of compensation payments made to directors for meetings that they have attended on behalf of the District. The governing resolution requires prior approval by the Chair for meeting attendance before compensation can be made. Corrections will be made after-the-fact in the following month's payment cycle. Chair McCracken, as chair of the Legislative Advocacy Ad Hoc Committee, reported that the committee has been meeting weekly for the past month to keep our legislative program on track. She outlined the discussion issues and indicated that proposals are due this week for services to seek grants from the state bond propositions. (6) REPORT OF THE GENERAL MANAGER Bob Ghirelli filled in forthe General Manager until he returned from a meeting with the Orange County Taxpayers Association where support Is being sought for exempting stormwater and urban runoff from Proposition 218 requirements. A. Report on EMT Retreat Dr. Ghirelli reported on the EMT retreat that was held January 30.31 and February 10. The goal was to develop the major unifying strategies that will be proposed to the Board for adoption and for use by our employees. The strategies will help describe the overall strategic direction and intention of the agency and support major policy decisions that the board has made, including the move to secondary treatment standards, GW RS,water resources management and our overall wastewater treatment program, including our$2 billion (plus) capital improvement program. B. Progress towards Achieving 30/30 Secondary Treatment Standards Dr. Ghirelli reported that work continues to move to secondary treatment standards. Secondary treatment level is now at 68 percent Suspended solids averaged 33 ppm, close to the 30 ppm standard. BOD averaged 47 ppm. The expert panel that is reviewing our secondary treatment facilities construction schedule met for the second time today. The panel includes experts in wastewater treatment engineering, construction and operations plus a representative from OC Coastkeepers. It is chaired by Jerry Thibeault. It is taking an independent look at the scheduled developed by staff. C. Disinfection Update Dr. Ghirelli reported that staff has successfully disinfected our effluent since mid- August. There have been a number of days when the District's own operational targets (a much stricter standard) were not met, but that has been rare. The State's surtzone bathing water standards have been met without exception at 4.5 miles out in the ocean, around our ouffall for 200 days. The bacterial counts in Huntington Beach appear to be unaffected by disinfecting our effluent. An evaluation will be done to see 0 the amount of bleach could be reduced. A presentation will be made at the April Board meeting. D. State Budget Crisis General Manager Blake Anderson reported that there was nothing new to report. Staff Book Page 6 Minutes of the Steering Committee Page 3 February 26, 2003 will continue to monitor the situation and notify the Board if something occurs that Impacts the District. E. Special OMTS Workshop on Asset Management Proposed Staff is recommending that a special OMTS workshop on Asset Management be conducted on March 19 beginning at 5 p.m. to give the directors a better understanding of asset management and the possibilities and costs. This program can substantially reduce our lice cycle costs and make us more efficient. An invitation will be extended to all directors to attend this workshop. The Steering Committee agreed with staff's recommendation. F. Directors Compensation Mr. Anderson reported that present directors compensation is set at$170 per meeting as established by resolution adopted in January 2001. State law allows for a 5 percent increase every calendar year, provided the Board adopts an ordinance to do so. Staff was seeking direction on whether to proceed with a new ordinance. The Steering Committee decided that a compensation increase is not appropriate at this time but that it would be revisited annually at its January meeting. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff reported that a detailed outline was included in the directors Board agenda package on changes to the Conflict of Interest provisions of state law. The members of the Steering Committee determined that the existing lists of warrants would be sufficient for checking for individual conflicts for the time being. It was suggested that a reminder to directors to check for possible conflicts of interest be added to agenda reports on new contracts. (6) DISCUSSION ITEMS (Items A-C) A. Status of NPDES Permit Renewal and Negotiation Process Bob Ghirelli reported that one of the conditions of the permit renewal for disinfection was that a report would be prepared on various options for disinfection other than bleach. The engineering department is working on the report and will be submitting it to the Regional Board this week. Additional testing will begin this summer. It appears that UV is the prevailing technology. The goal is to move away from bleach and dechlorination. Actual negotiations will get underway once the CIP has been validated and the Board approves the schedule. B. The Agenda Items scheduled to be reviewed by the Board's working committees in March were reviewed. C. The agenda items scheduled to be presented to the Board at tonight's meeting were reviewed. Mr. Woodruff reported that a bid protest has been received on Item 16. He will be recommending against upholding the protest and explained his reasons. Book Pap 7 Minutes of the Steering Committee Page 4 February 26, 2003 (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING Bob Ghirelli said that the final report on the Huntington Beach studies has been moved to April. The presentation will include a video showing life at the end of the outfall before and after disinfection. He also said that additional work has been planned. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT The General Manager's evaluation, usually scheduled for January, has been on hold awaiting completion of the MOUs with employee organizations. The Steering Committee asked that the evaluation be considered next month and compensation issues be discussed when the MOU process is complete. (12) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, March 26, 2003 at 5 p.m. The next Board Meeting is scheduled for Wednesday, March 26, 2003 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:16 p.m. in Closed Session, pursuant to Government Code Sections 54956.9 (b), 54956.9(a) and 54956.9(c),to discuss three litigation matters. 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. No reportable actions were taken on Agenda Items Nos. 13.A.(1), (2) and (3). At 6:45 p.m., the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:45 p.m. Submitted by: Jean Tappan Book Page 8 STEERING COMMITTEE Meeting Date mm.or .Dir. 03-26-03 AGENDA REPORT Item Number Item Number 8A Orange County Sanitation District FROM: Robert P. Ghirelli, Director of Technical Services Originator: James Colston, Legal & Regulatory Affairs Liaison SUBJECT: Status of NPDES Permit Renewal and Negotiation Process GENERAL MANAGER'S RECOMMENDATION Information only. SUMMARY Staff will provide the Board with an update on the following issues, as needed: • Status of the Peer Review Process to review the updated Capital Improvement Program schedule to build additional secondary treatment facilities. • Status of the negotiations between the District and the EPA and RWQCB to renew the District's ocean discharge permit. • Update of legislative funding effort for secondary treatment. 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 C\p unnena and senings ,aLLaaal Semn, rarorary Internet FlesnOUQFEN NPOES PermX Renewal and Negotia0on Prtro AR-6doc Pevia9E:3q (Cr) Pagel Book Page 9 CEQA FINDINGS N/A ATTACHMENTS N/A C Y.` MMe"SetlIno g4oFY SeMryAT*r Mry McMt FIWsOLJQFEWl28W NPOES Pemll Rmewel a Npatl nPro AR44w RevluE:1IM(CP) Page 2 Book Page 10 STEERING COMMITTEE Mewing Dare To Bd.of Dir. 3/26/03 AGENDA REPORT "B8M It"""n e Orange County Sanitation District FROM: Blake P. Anderson, General Manager SUBJECT: CONSIDER RECOMMENDING A POLICY FOR PROPERTIES THAT ABANDON SEPTIC TANKS AND CONNECT TO SANITARY SEWERS WITHIN THE DISTRICT THAT OFFSETS THE CAPITAL FACILITIES CAPACITY CHARGE AGAINST THE ENVIRONMENTAL AND SOCIAL BENEFITS TO THE SERVICE AREA GENERAL MANAGER'S RECOMMENDATION Recommend to the FAHR Committee that they consider adopting a policy that establishes the environmental and social benefits to the community from an abandoned septic tank as being equal to the connection fees (Capital Facilities Capacity Charges) that would otherwise be due to the District. This policy would apply only in cases where properties were developed, occupied and served by septic tank prior to March 31,2003. Proof that the septic tank was abandoned properly would be required. SUMMARY Currently our records show there are about 1,500 properties within the Sanitation District service area on septic tanks rather than sanitary sewers. A smaller number is estimated to exist within the County but outside of our service area. Many believe that these septic tanks contribute to the bacterial contamination of urban runoff. This could be a result of failing systems or of contamination leaching through the soil and emerging to be carried away. The Directors have discussed methods of encouraging property owners to abandon their septic tanks and to connect to the sanitary sewers. General Counsel has advised that our existing Ordinance does not allow fees to be waived or set aside. The Directors could, however amend the Ordinance or adopt a revised one to include findings that would allow an offset or credit to the Capital Facilities Capacity Charge. There are many steps required of a property owner who wishes to move from an on-site septic tank to the regional sanitary sewer system. If not in the service area, the property must be annexed to a local sewering agency as well as to the Sanitation District. A lateral must be constructed from the building on the property to the local sewer and a local and OCSD connection fee must be paid. If a local sewer is not available, then that sewer must be constructed. The septic tank must be emptied and then property abandoned by a licensed contractor. Of course the total cost for these services varies by property and proximity to a local sewer, but it is always substantial. District staff has Book Page I I estimated the cost to abandon a septic tank and to build a 100-foot vitrified clay pipe connection to an existing local sewer to be between $12,000 and $15,000. PROJECT/CONTRACT COST SUMMARY Cost to the District would be minimal in any single year. The benchmark CFCC, for a 3- bedroom single-family residence, is currently$1,820. If the 1,500 septic tank estimate is correct, then the total CFCCs not collected would amount to $2,730,000 over some period of time. Some of these properties will never connect because no local sewer can be provided and many will take some time to connect while local sewers are being constructed. Limited staff time and services of General Counsel would be necessary to prepare a new Ordinance, and once the policy is implemented there would be minor staff costs to monitor the septic tank abandonment process. BUDGETIMPACT ❑ This item has been budgeted. (Line Rem: ) ❑ This item has been budgeted, but there are insufficient funds. X This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION At the November 7, 2002 Special Steering Committee meeting, Vice Chair Anderson asked that the Committee consider the possibility and/or advisability of the Sanitation District helping property-owners convert from septic tanks to sewer systems. He reported that the City of La Habra provides funding for a low-cost loan program and wondered if the District could implement a similar program. The goal of a District program would be to encourage sewer connections as a way to reduce the bacterial contamination in urban runoff that may be attributed to septic tanks. The City of La Habra program is discussed later in this report. The County and LAFCO are working together to have all of the County-islands annexed to the appropriate cities. As a part of this effort, the County would like any properties currently on septic tanks to connect to available local sewers. The County has informally asked the District to waive these connection fees. General Counsel has consistently advised that the existing Ordinance does not permit the Directors to waive these fees. The Directors have not waived connection fees in the past, while focusing on their responsibilities to collect, treat and dispose of sewage. Today the agency has adopted more regionally-based mission and vision statements and expanded its official concerns to include groundwater protection, urban runoff and other sources of beach pollution. At their May 2002 meeting, the Steering Committee members expressed their support for continuing the current and past practices. They also expressed interest in enacting L S WNry Ta Fary IMe FIWB KYFQ46W AR mm"s µ».]Mc a...... e 1 Page 2 Book Page 12 some method to lessen the financial burden for these property owners while retaining a fair-share principle. In December 2002,the Steering Committee reviewed a time-payment plan that was intended to satisfy the members' concerns. There is precedence for a time-payment plan, but success has been quite limited. In 1989, the Board of District 7 authorized a 3-year, 3-payment, interest free program for homes that were occupied prior to the authorization and prior to a fee increase from $250 to$1,500. In 1999, the Board authorized a similar agreement for the owner of a 15-unit apartment complex whose septic tank had failed. This was during the enactment of a lower per unit connection fee and ultimately the property owner was able to delay the connection until the lower fees were enacted and they were paid in a lump sum. Additionally, in 2000 the Steering Committee authorized a loan program for a small area that would be annexed to the City of Brea. This area contained 17 homes and a commercial nursery, all on septic tanks. While the City requested the fees to be waived, the Steering Committee suggested a loan program. The proposed loan was limited to $3,000 per property, was to be a "low interest loan,"and was to be secured by a lien on the property. This program was submitted to the property owners by the City, but no loans have been made to date. The Steering Committee rejected the December time-payment plan as it was deemed too restrictive and did not provide sufficient incentive to encourage property owners to abandon their septic tanks. Staff was directed to consider more options and to increase the incentive. The Committee expressed a desire to improve groundwater quality and to reduce urban runoff contamination by having septic tanks properly abandoned. City of La Habra Program In November 2002, the City of La Habra introduced an Ordinance authorizing levying annual assessments for sanitary sewer system connections at the request of the property owner. The purpose of the program was to provide property owners an alternative means of financing the costs required to convert from a septic tank to the local sewer system. The program allows payment of costs over a 10-year period and requires the property owner to authorize the City to collect the repayment as a separate line item on the property tax bill. The costs can include the property's share of the local sewer construction cost, the lateral construction cost, the septic tank abandonment cost, the OCSD capital facilities capacity charge and interest at the rate of 3%per year. The costs are expected to be around $15,000 per single-family homeowner. The process has several steps. It requires a separate petition from each property owner for each loan, authorization from each property owner to place the assessment on the tax bill, a report from the Director of Public Works, consideration by the City Council, a Resolution by the City Council and alien against the property. Once the Resolution is adopted, City staff notifies the County Auditor/Controller to place the cmou..nnm w sm,pAyapeuew Samnaslrmpmary�^�Faneov u,wM,o.o�ow.raz nww azw, Page 3 Book Page 13 assessment on the tax bill. The amount of the assessment changes each year in order to allow for prepayments with no penalty. Staff keeps track of each loan and notifies the County of the appropriate assessment each year. When the total loan and interest have been collected, City staff must complete and record a notice that the assessment lien has been released. The City program includes a cap on the total amount of loans outstanding at any time. Once that cap of$500,000 has been reached, no additional loans can be authorized until there is room under the cap. Recommendation After considering the La Habra program and several other alternatives as shown below, staff has developed a compromise recommendation. Staff believes there is a nexus between septic tanks and groundwater pollution and contaminated urban runoff. The District has long been a regional watershed environmental steward and now has the legislative authority to provide solutions to urban runoff problems. Staff estimates that the long-term costs to society from this type of contamination are greater than the District's capital facilities capacity charge. Therefore, staff recommends that the CFCC be offset by, or considered "paid"by or equivalent to, these societal and environmental costs for properties that are currently using a septic tank whenever they connect to a local sewer, resulting in no CFCC becoming due with the issuance of a building permit. ALTERNATIVES 1) Make no changes to the current program. Do not provide any incentives to abandon existing septic tanks because that is not our responsibility and the cost of any incentive will be passed on to all users. 2) Provide some sort of a payment plan, similar to the proposal rejected by the Steering Committee in December. This option incurs a range of administrative costs depending upon the plan. The only incentive of such a plan is reduced interest payments and that is probably not sufficient to change behavior since our CFCC is approximately$2,000 for a typical single-family residence. 3) Provide clean water incentive grants. These grants could be a part of the District's cooperative projects program and made directly to Cities that encourage connections to the sewer system in place of existing septic tanks. This program may be more costly to administer, but would also increase the public incentive by requiring the City and County to participate in funding the program. Limited City and County funds may make this program difficult to implement. A cost-sharing formula, setting limits for the District's participation and perhaps setting minimum amounts of participation by co-funding agencies would have to be developed by District staff for consideration by District directors. cNC de aMS ft,nPi wce WS tlti Tcm ram Inle W Fks\�M9bem3.0 ,1,1 ant A.�=aa: erzao� Page 4 Book Page 14 CEQA FINDINGS N/A ATTACHMENTS None GGS:g C,d mene and SettingynppLLual Sel WsWmp Mn IN t FlnCMFEb]Z66fM aaeflV eeplc gal] neamd, azam Page 5 Book Page 15 STEERING COMMITTEE Maetlrg�� To Btl.of Oir. AGENDA REPORT 3/2, Item Number I Item Number BG Orange County Sanitation District FROM: Blake P. Anderson, General Manager Originator: Jean Tappan, Committee Secretary SUBJECT: April 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 April. 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 April: OMTS Committee: 1. 2. 3. PDC Committee: 1. Ratify Change Order No. 3 to Job No. J-33-1 A, Standby Power and Reliability Improvements to Treatment Plants Nos. 1 and 2 2. Ratify Change Order No. 1 and Approve Closeout Agreement and Notice of Completion for Job No. P2.84, Landscape and Irrigation at Plant No. 2 3. Ratify Change Order No. 2 to Job No. P2-60, Solids Storage and Truck Loading Facility at Plant No. 2 4. Ratify Change Order No. 6 to Job No. P1-37, Primary Clarifiers Nos. 16-31 and Related Facilities at Plant No. 1 5. Ratify Change Order No. 1 to Job No. P11-62, Sunflower Pump Station Drive Replacement 6. Ratify Change Order No. 1 to Job No. 1-2-4, Bushard Trunk Sewer Rehabilitation 7. Approve plans and specifications and Addendum No. 1 and award construction contract for Job No. P2-85, Circular Clarifier Drive Replacement; and SP-73, Sludge Blanket Indicator Installation FAHR Committee: 1. Consider Safety Policies 2. Meet and Confer Status Report 3. Consider Preliminary User Fees for 2003/04 Book Page 16 4. Consider Connection Fees for 2003104 5. Consider Issuance of COPs 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 C lorb,ardM Page 2 Book Paee 17 STEERING COMMITTEE McVn6g Date To ad.of Dir. 3/26/03 AGENDA REPORT Iem Number Item Number 8D Orange County Sanitation District FROM: Blake P. Anderson, General Manager Originator: Jean Tappan, Committee Secretary SUBJECT: March 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 March 26, 2003 meeting. SUMMARY Staff routinely prepares for the Steering Committee a list of items scheduled for presentation to the Working Committees and the Board at their next monthly meetings. This allows the Steering Committee the opportunity to review these items early enough to make reassignments in the review or approval process. The following items are scheduled to be considered by the Board in March: 1. (Consent Items) none listed 2. Actions from OMTS Committee 12.c. Receive and file Phase II Biotrickling Filter for Odor Control Demonstration Project Final Report 12.d. Receive and file In-plant Fats, Oils and Grease (FOG) Impact Study 12.e. Authorize General Manager to negotiate and award consulting services agreement with Partners Consulting Services, Inc. for Financial Information System Technical Support 12.f. Actions re Fiberglass Reinforced Caustic Storage Tanks 3. Actions from PDC Committee 13.c. Ratify Change Order 1 to Fiber Optics Extension at Plant 2 13.d. Approve Addendum No. 3 to PSA for Abandonment of Airbase Trunk Sewers and Construction of Watson Avenue and California Street Sewers 13.e. Approve Addendum No. 1 to PSA for Central Generation Automation 4. Actions from FAHR Committee 14.c. Receive and file February 2003 Treasurer's Report 14.d. Adopt resolution re Records Management Program 14.e. Actions re Temporary Employment Services contract 5. Actions from GWRS Cooperative Committee None 6. Other Action Items 16. Actions re Trickling Filter Rehabilitation and New Clarifiers, Job No. P1=76 Book Page IS 17. Actions re Drain System for North Pacific Coast Highway Force Main, Contract No. 5-56 18. Approve license agreement re Carbon Canyon Dame Sewer and Pump Station Abandonment, Contract No. 2-24-1 19. Actions re Final Initial Study/Mitigated Negative Declaration for Rehabilitation of Edinger Pump Station, Rehabilitation of A Street Pump Station and Replacement of Bitter Point Pump Station 20. Receive and file correspondence between OCSD/SAWPA re SARI Relocation and Protection project 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 O M..FMMOLI MU.MMslo,Ma,BE MIq'a^Bd. Rm>ea: Bregree Page 2 Book Page 19 Orange County Sanitation District (714) 962-2411 www,ocsd.com mailing address: P.Q. Box 8127 Fountain Valley, California 92728-8127 street address : 10844 Ellis Avenue Fountain Valley, California 92708-7018 published on recycled paper