HomeMy WebLinkAbout2003-09 DRAFT
MINUTES OF STEERING COMMITTEE MEETING
Wednesday, September 24, 2003
A meeting of the Steering Committee of the Orange County Sanitation District was
held on Wednesday, September, 2003 at 4 p.m., in the District's Administrative
Office.
(1) The roll was called and a quorum declared present, as follows:
STEERING COMMITTEE MEMBERS: Thomas L. Woodruff, General Counsel
Directors Present: Randy Fuhrman
Shirley McCracken, Chair Gerhardt Van Dreis
Steve Anderson, Vice Chair
Jim Ferryman, Chairman, OMTS Committee STAFF PRESENT:
Brian Donahue, Chairman, PDC Committee Blake Anderson, General Manager
Norm Eckenrode, Past Board Chair Bob Ghirelli, Director of Technical Services
Carol Beekman, Communications Services
Directors Absent: Manager
Brian Brady, Chairman, FAHR Committee Jean Tappan, Committee Secretary
Jim Silva, County Supervisor Nick Arhontes, Manager, Regional Assets and
Services
OTHERS PRESENT:
(2) APPOINTMENT OF CHAIR PRO TEM
No appointment was necessary.
(3) CLOSED SESSION
The Committee convened at 4:05 p.m. in Closed Session, pursuant to Sections 54957.6 and
54956.9, to discuss two issues re compensation and one litigation case. 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 5:40 p.m., the Committee reconvened in regular session. FILED
IN THE OFFICE OF THE SECRETARY
ORANGE new r—-ennN DISTRICT
OCT 22 2003
OY f __
Minutes of the Steering Committee
Page 2
September 24, 2003
(4) PUBLIC COMMENTS
There were no comments by any member of the public.
(5) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING
The minutes of the August 27, 2003 Steering Committee meeting were approved as drafted.
(6) REPORT OF THE COMMITTEE CHAIR
Committee Chair Shirley McCracken reported that staff provided the meeting and compensation task
committee revised forms for consideration.
Chair McCracken announced that our Sacramento and Washington, DC, lobbyists will be attending
the October 22 Steering Committee and Board meetings to discuss the results of our efforts over the
past year and objectives for 2004. It was decided that the Committee would receive the reports and
recommendations from the consultants and then decide the course of action. The October 22
Steering Committee meeting will begin at 4 p.m.to allow enough time for a comprehensive
discussion.
Updates were provided on AB 1427, the Biosolids bill;AB 1051, Capital Facilities fees;ACA 10,
Local Government Property-Related Fees; Proposition 53, Infrastructure set-asides; and federal
funding support for our secondary treatment expansion.
Chair McCracken announced that the tentatively scheduled workshop with the OCW D directors on
October 15 has been postponed until February.
General Manager Blake Anderson stated that if the State Water Board takes on the Biosolids issue
by making a policy statement within the General Orders, AB 1427 will not be necessary.
After some discussion, it was moved, seconded and approved to recommend that the Board of
Directors pass a resolution of support for Proposition 53.
Chair McCracken acknowledged the special efforts of Director Tod Ridgeway regarding the low-flow
toilet program, as well as persuading Congressman Cox to sign a letter to the Chair of the
Appropriations Committee that can provide us with EPA funding for our secondary treatment
construction program.
(7) REPORT OF THE GENERAL MANAGER
A. Status of aareement with member agencies for WDR activities
Nick Arhontes reported that staff has been working with the cities and sewering
agencies on the Regional Board's Waste Discharge Requirements (WDR)compliance
program. A working group from members of the City Engineers Association of Orange
County(CEAOC) has approached the District and proposed that the District serve as
lead agency for contracting task related work and provide support to the parties of the
agreement and develop fees and administer the program.An annual budget would
• Minutes of the Steering Committee
Page 3
September 24, 2003
also be prepared.The basis for this agreement is a similar agreement that the cities
have with the County of Orange for administering task related work on the countywide
NPDES Stormwater Permit program.The District would provide contract management
to develop the tools such as reports,templates, or studies to the parties to assist them
with their responsibilities. Initial efforts are developing Fats, Oils and Grease (FOG)
studies and developing Communications Programs. Mr. Arhontes indicated that fair
share fees for inclusion in this program would probably be based on population. The
agreement could also serve as a model for other agreements for OCSD to assist cities
and sewering agencies on other regional services issues in the future. General
Counsel's office has the draft and after it is reviewed, it will be forwarded to the cities
for final review and signatures. Several agencies included in the WDR but out of our
service area such as El Toro Water District and Sunset Beach Sanitary District have
expressed interest in participating.The operating military bases named in the WDR
have been non responsive thus far.
B. OCSD's 50'Anniversary Celebration
Carol Beekman reported that a committee has been formed to plan for the District's
51P anniversary,which will be celebrated on June 30, 2004. Fifty ideas have been
suggested and they are being evaluated. Ms. Beekman said that interviews are
planned with current and former directors to create a history of the District.
C. Mr.Anderson provided additional information on the low-flow toilet program as it has
evolved since OCW D withdrew its support. Even with the changes to the program
and lower public participation, it is still a solid investment for the Sanitation District.
The agreement will not need to be modified if the District's contribution per toilet
supporting the program stays as it is now.
D. Mr. Anderson announced that there will be a meeting between SAW PA and OCSD
general managers and general counsels to begin drafting the agreement based on the
recently approved term sheet. There is a side issue of the purchase of an additional 2
mgd of capacity by SAW PA. It can move forward in parallel with the agreement.
(8) REPORT OF GENERAL COUNSEL
General Counsel Tom Woodruff provided additional information on AB 1051,which obligates school
districts to pay their fare share of sewage treatment operating and capital costs. It is due to be
signed by the Governor by October 12,though there is considerable opposition to the issue from
school districts.
(9) DISCUSSION ITEMS(Items A-C)
A. Consider Resolution No. OCSD 03-21,authorizing the filing of a tax assessment
appeal with the State Board of Equalization re District's Kings County'Williamson Acr
property
Mr Woodruff explained that this resolution of the Board is required before the State
Board of Equalization will consider our request. After discussion, staff was requested
Minutes of the Steering Committee
Page 4
September 24, 2003
to provide an update on the biosolids program and costs associated with the options
currently used.
B. The Agenda Items scheduled to be reviewed by the Board's working committees in
October were reviewed.
C. The agenda items scheduled to be presented to the Board at tonight's meeting
were reviewed. Mr. Woodruff said that he will be reporting on the results of the
September 18 Adjourned PDC Committee meeting.
(10) OTHER BUSINESS,COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY
There was no other business discussed.
(11) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A
SUBSEQUENT MEETING
A. Biosolids Update
(12) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR
ACTION AND/OR STAFF REPORT
A. General Counsel's Contract Terms
(13) CONSIDERATION OF UPCOMING MEETINGS
The next Steering Committee meeting is scheduled for Wednesday, October 22,2003 at 4 p.m.
The next Board Meeting is scheduled for Wednesday, October 22, 2003 at 7 p.m.
(14) ADJOURNMENT
The Chair declared the meeting adjourned at 6:35 p.m.
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STEERING COMMITTEE AND BOARD MEETING DATES
FOR THE NEXT TWELVE MONTHS
Wednesday, October 22, 2003
Wednesday, November 19, 2003'
Wednesday, December 17, 2003'
Wednesday, January 28, 2004
Wednesday, February 25, 2004
Wednesday, March 24, 2004
Wednesday, April 28, 2004
Wednesday, May 26, 2004
Wednesday, June 23, 2004
Wednesday, July 28, 2004
Wednesday, August 25, 2004
Wednesday, September 22, 2004
Wednesday, October 27, 2004
'Tentatively rescheduled from regular fourth Wednesday.
STEERING COMMITTEE
(1) Roll Call:
Meeting Date: September 24, 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 Finance(Treasurer.......................
Lisa Tomko, Director of Human Resources........................
Carol Beekman, Communication-Services Manager..........
Jean Tappan, Secretary.....................................................
c: Lenora Crane
AGENDA
REGULAR MEETING OF THE STEERING COMMITTEE
ORANGE COUNTY SANITATION DISTRICT
WEDNESDAY, SEPTEMBER 24, 2003 AT 4 P.M.
ADMINISTRATIVE OFFICE
10844 Ellis Avenue
Fountain Valley, California
Agenda Posting: 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 offices not less than 72
hours prior to the meeting date and time above. All written materials relating to each agenda item are
available for public inspection in the office of the Board Secretary.
Items Not Pasted: In the event any matter not listed on this agenda is proposed to be submitted to the
Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an
emergency item or because there is a need to take immediate action,which need came to the attention
of the Committee subsequent to the posting of agenda, or as set forth on a supplemental agenda
posted in the manner as above, not less than 72 hours prior to the meeting date.
Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If
you require any special disability related accommodations,please contact the Orange County Sanitation
District Board Secretary's office at (714) 593-7130 at least 72 hours prior to the scheduled meeting.
Requests must specify the nature of the disability and the type of accommodation requested.
Items Continued: Items may be continued from this meeting without further notice to a Committee
meeting held within five (5)days of this meeting per Government Code Section 54954.2(b)(3).
Meeting Adiournment: This meeting may be adjourned to a later time and items of business from this
agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with
Government Code Section 54955 (posted within 24 hours).
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
Book Page 1
-2- September 24, 2003 Agenda
(3) CLOSED SESSION (Expected to conclude between 5 and 5.30 p.m. Dinner will be
served at 5:30 P.m.)
During the course of conducting the business set forth on this agenda as a regular meeting of
the Steering Committee, the Chair may convene the Committee in closed session to consider
matters of pending real estate negotiations, pending or potential litigation, or personnel matters,
pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted.
Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential
litigation; (c)employment actions or negotiations with employee representatives; or which are
exempt from public disclosure under the California Public Records Act, may be reviewed by the
Directors during a permitted closed session and are not available for public inspection. At such
time as final actions are taken by the Board on any of these subjects, the minutes will reflect all
required disclosures of information.
A. Convene in closed session to:
1. Consider General Manager's Annual Performance Evaluation and
Compensation (Government Code Section 54957.6)
2. Confer with General Manager re Executive Management Team
Compensation (Government Code Section 54957.6)
3. Confer with General Counsel re Sargent v. Orange County Sanitation
District, Orange County Superior Court Case No. 02CC11206
(Government Code Section 54956.9).°
B. Reconvene in regular session
C. Consideration of action, if any, on matters considered in closed session.
(4) PUBLIC COMMENTS (Commencing at approximately 5:30 p.m.)
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
have action taken by the Committee except as authorized by Section 54954.2(b).
(5) APPROVE MINUTES OF PREVIOUS MEETING
Approve draft minutes of the August 27, 2003 Steering Committee meeting.
(6) REPORT OF COMMITTEE CHAIR
A. Update from Task Committee on Approval and Compensation for Directors'
Meeting Attendance(Directors Brady and Anderson)
Book Page 2
-3- September 24, 2003 Agenda
(7) REPORT OF GENERAL MANAGER
A. Status of a�reement with member agencies for W DR activities (Nick Arhontes)
B. OCSD's 50 Anniversary Celebration (Carol Beekman)
(8) REPORT OF GENERAL COUNSEL
(9) DISCUSSION ITEMS (Items A-C)
A. Consider Resolution No. OCSD 03-XX, authorizing the filing of a tax assessment
appeal with the State Board of Equalization re District's Kings County'W illiamson
Act' property (Tom Woodruff)
B. Review Agenda Items scheduled to be presented to Committees in October
(Information item only)
C. Review and consideration of Agenda Items for Board of Directors Meeting of
September 24, 2003
(10) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY
(11) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A
SUBSEQUENT MEETING
(12) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA
FOR ACTION AND STAFF REPORT
(13) FUTURE MEETING DATES
The next Steering Committee Meeting is scheduled for 5 p.m., Wednesday, October 22, 2003.
The next Board Meeting is scheduled for 7 p.m., Wednesday, October 22, 2003.
A Special Board Workshop will be held with OCW D Directors on Wednesday, October 15, 2003
to update the directors on the GW RS project.
(14) ADJOURNMENT
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GMPVTANGENDASM RING COMMRTEE EP 40 M NOAOOC
Book Page 3
-4- September 24, 2003 Agenda
Notice to Committee Members:
For any questions on the agenda or to place items on the agenda,Committee members should contact the
Committee Chair or the Secretary ten days in advance of the Committee Meeting.
Committee Chair: Shirley McCracken (714)765-5247(Anaheim City Hell)
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, August 27, 2003
A meeting of the Steering Committee of the Orange County Sanitation District was
held on Wednesday, August 27,2003 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 Sonja Wassgren
Jim Ferryman, Chairman, OMTS Committee Jennifer Cabral
Brian Brady, Chairman, FAHR Committee Ryal Wheeler
Jim Silva, County Supervisor Randy Fuhrman
Gerhard Van Dries
Directors Absent:
Brian Donahue, Chairman, PDC Committee STAFF PRESENT:
Norm Eckenrode, Past Board Chair Blake Anderson, General Manager
Bob Ghirelli, Director of Technical Services
Gary Streed, Director of Finance/Treasurer
Carol Beekman, Communications Services
Manager
Jim Herberg, Engineering Manager
Jean Tappan, Committee Secretary
(2) APPOINTMENT OF CHAIR PRO TEM
No appointment was necessary.
(3) PUBLIC COMMENTS
Randy Fuhrman spoke on Agenda Item 8.A. and asked that the directors recommend the deterred
payment plan for a 10-year period. He also stated that there were no studies or presentations made
to the Board on the septic tank problem.
(4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING
The minutes of the July 23, 2003 Steering Committee meeting were approved as drafted. Chair
McCracken abstained.
Book Page 5
(5) REPORT OF THE COMMITTEE CHAIR
A. Legislative Advocacy Update
Chair McCracken reported on activities of the Legislative Advocacy Ad Hoc
Committee. Four issues are being discussed: federal funding support for
secondary treatment; ACA 10, Proposition 53; AS 1427-Biosolids; and AS 496-
Santa Ana River Conservancy.
B. Approval and compensation for Directors' meeting attendance
Chair McCracken stated that Ordinance No.OCSD-14, which establishes Board
of Directors compensation, is silent on several issues that need to be clarified.
She provided the members with a memo outlining the issues. She suggested
forming an ad hoc committee to review the ordinance and discuss the issues and
return to the Steering Committee with suggestions and recommendations.
Directors Steve Anderson and Brian Brady volunteered to serve on this Ad Hoc
Committee.
C. The next Steering Committee meeting will begin at 4 p.m.to allow adequate time
to discuss in Closed Session the general manager's performance and consider
compensation.
(6) REPORT OF THE GENERAL MANAGER
General Manager Blake Anderson reported on changes to the low-flow toilet water conservation
program. This item is on tonight's Board agenda for consideration. Jim Herberg described the
program and why participation by the District is important. The proposed changes do not require any
increase in authorized total contribution for the 5-year program. The program has reduced our Flows
by an estimated 4.7 mgd so far. The program runs out in June of next year. Staff will re-evaluate it
at that time and return to the Steering Committee with a recommendation.
(7) REPORT OF GENERAL COUNSEL
General Counsel Tom Woodruff reported that the District has received from the contractor's
insurance company most of the money we spent on the lawsuit filed by property owners over
damages sustained during the construction of the below-grade pump station in Newport Beach.
He also reported that the bill exempting public agencies from paying fees imposed by other public
agencies has been reworked and should be out of committee this week. There should be no impact
on the District as we already collect these fees.
In response to an inquiry from Director Ferryman,the problem with the homeowners encroaching on
the District's easement along the 405 freeway in Costa Mesa was discussed. Mr.Woodruff stated
that all of the title reports have been received and a full report will be made to the Steering
Committee next month.
Book Page 6
Minutes of the Steering Committee
Page 3
August 27, 2003
(8) DISCUSSION ITEMS (Items A-C)
A. Consider recommending a loan policy for properties within the District that abandon
septic tanks and connect to sanitary sewers.
The general manager reported that this item has been before the Steering Committee
on several occasions. A request for a waiver of Capital Facilities Capacity Charges
(CFCC)from the City of Brea was made in 1999. Because of the fair-share policy
established by the Board, this is not recommended; however, a deferred payment for
the CFCC's due could be used,together with placing a lien on properties that
abandon septic systems and connect to the sewer. The payment plan would include a
low-interest rate and would be due and payable in ten years or upon property transfer,
whichever is sooner. If, at the end of the ten-year period, the property had not been
transferred,the lien could either be extended or a payment demand could be made.
Dr. Robert Ghirelli, Director of Technical Services, stated that there are studies that
show a connection between septic system failures and groundwater contamination.
Moved,seconded and duly carried: Recommend that the FAHR Committee
consider a loan policy for properties within the District that abandon septic tanks and
connect to sanitary sewers and make recommendations to the Board.
B. The Agenda Items scheduled to be reviewed by the Board's working committees In
September were reviewed.
C. The agenda items scheduled to be presented to the Board at tonight's meeting
were reviewed.
A discussion on the proposed location for the Ellis Avenue Pump Station followed.
Staff will provide Director Silva with all the information that has been provided to the
homeowners and received from other sources. It is anticipated that many of the
people who attended Monday's scoping meeting will also attend the Board meeting.
Chair McCracken said that she will limit public comments to 30 minutes because this
item is not on the agenda.
(9) OTHER BUSINESS,COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY
There were none.
(10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A
SUBSEQUENT MEETING
There were none.
Book Page 7
Minutes of the Steering Committee
Page 4
August 27, 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, September 24, 2003 at 4-2.n
The next Board Meeting is scheduled for Wednesday, September 24, 2003 at 7 p.m.
(13) CLOSED SESSION
The Committee convened at 6:16 p.m. in Closed Session to discuss agenda item 13.A.1 re
potential litigation pursuant to Government Code Section 54956.9(b), and consideration of the
General Manager's Annual Performance Evaluation and Compensation pursuant to Government
Code Section 54957.6. Minutes of the Closed Session are on file with the Board Secretary.
Confidential Minutes of the Closed Session held by the Steering Committee have been prepared
in accordance with Government Code Section 54957.2, and are maintained by the Board
Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings.
A report of the recommended actions will be publicly reported at the time the approved actions
become final.
At 6:55 p.m., the Committee reconvened in regular session.
(14) ADJOURNMENT
The Chair declared the meeting adjourned at 6:55 p.m.
Submitted by:
i I
Je Tappan
Ste ring Committee Secretary
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Book Page 8
BOARD OF DIRECTORS MeebngDate I Toed.of DR.
09/29/03
AGENDA REPORT ItmNumber Item Number
�. 16
Orange County Sanitation District
FROM: Thomas L. Woodruff, General Counsel
SUBJECT: Kings County Property—Application for Adjustment of Supplemental Fees
Imposed by Kings County Assessor
GENERAL MANAGER'S RECOMMENDATION
Adapt Resolution No. OCSD 03-21, Authorizing the Filing of an Application for Review.
Equalization, and Adjustment of Assessments of the District's Kings County Property
with the California State Board of Equalization and Kings County Board of Supervisors.
SUMMARY
Please see General Counsel's memo dated September 15, 2003.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
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.
X Not applicable (information item)
ADDITIONAL INFORMATION
ALTERNATIVES
CEOA FINDINGS
ATTACHMENTS
General Counsel's Memo dated 9/15/03
Proposed Resolution No. OCSD 03-21
G\.R.maa9aatlamaa Aena R.P.w 03 edamA rdn R..r.W90M.M 16 Ir11 cwngaoc
R.I. oeroum Page 1
Book Page 9
RESOLUTION NO.00SD 03-21
AUTHORIZING THE FILING OF AN APPLICATION FOR REVIEW
EQUALIZATION, AND ADJUSTMENT OF ASSESSMENTS OF THE
DISTRICT'S KINGS COUNTY PROPERTY WITH THE CALIFORNIA
STATE BOARD OF EQUALIZATION AND KINGS COUNTY BOARD OF
SUPERVISORS
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE
COUNTY SANITATION DISTRICT AUTHORIZING THE FILING OF AN
APPLICATION FOR REVIEW, EQUALIZATION, AND ADJUSTMENT OF
ASSESSMENTS OF THE DISTRICTS KINGS COUNTY PROPERTY
WITH THE CALIFORNIA STATE BOARD OF EQUALIZATION AND
KINGS COUNTY BOARD OF SUPERVISORS
WHEREAS, on or about June 5, 2000, the District acquired ten (10) parcels of
land totaling approximately 1,808 acres in Kings County; and,
WHEREAS, at the time of the acquisition,the property was subject to a
Williamson Act contract, as provided by California Government Code Sections 51200 at
seq., and was being used for commercial agricultural purposes, specifically the
production of feed and fiber crops; and
WHEREAS, the commercial agricultural use of the property Included the long-
standing practice of using land-applied biosolids as a soil amendment; and
WHEREAS, District acquired the property through a proper Purchase and Sale
Agreement,with a willing seller and at a fair market price, solely for the purpose of
continuing the long-established practice of the land application of biosolids, in
conjunction with commercial agricultural operations on the entire site in a manner
permissible under the Williamson Act and In full accordance with all applicable regulatory
requirements; and
WHEREAS, after acquiring the property,the District received notices of
supplemental assessments from the Kings County Assessor's Office, which increased
the total assessed value of the property. These notices were sent because the King's
County Assessor's Office concluded, without the benefit of a hearing,that the District
could not own land under a Williamson Act contract; and
WHEREAS, District desires to protest and challenge the imposition of the
supplemental assessments upon its property that have been levied by the Kings County
Assessor; end
WHEREAS, on August 16, 2002,the District filed an appeal of the assessments
with the Kings County Tax Assessment Appeals Board; and
WHEREAS, on August 26,2003,the District was notified by the State Board of
Equalization that it was asserting jurisdiction over the disputed assessment and required
a formal Resolution of the Board of Directors to proceed forward with the process; and
W S&S-TLW:pj:09/1&/03:0174204 1
Book Page 10
September 17, 2003
Page 2
The Kings County Assessor's Office concluded that the District, as a public
agency, could not own land under a Williamson Act contract. We believe that decision
to be clearly in error. Thereafter, the District received notices of supplemental tax
assessments on the property from the Kings County Assessor. The assessments were
increased from $327,323 for Fiscal Year 2000-01, to $2,279,044 for Fiscal Year 2003-
04 for the 10 parcels.
The District is required to pay property taxes because the site is located outside
of the jurisdiction of the District, and the Constitutional exemption for public agencies
does not apply.
However, it is our belief that the District, through proper negotiation with a willing
seller and at a fair market value, is entitled to purchase Williamson Act contract land
and is able to receive the tax benefits afforded under the Act. Further, we believe the
supplemental assessments were erroneously imposed by the Kings County Assessor.
The Resolution before you at this time affirms the acquisition of the property for
the sole purpose of continuing the commercial agricultural operations and application of
biosolids, and authorizes General Counsel to file an Application for Review,
Equalization, and Adjustment of Assessments with the California State Department of
Equalization and the Kings County Board of Supervisors.
THOMAS L. WOODRUFF
GENERAL COUNSEL
TLW:pI
cc: Mr. B.P. Anderson
Mr. G.G. Streed
Mr. R. Ghirelli
Mr. L. Baroldi
4panda
Book Page 11
LAW OFFICES OF
WOODRUFF, SPRADLIN & SMART
A PROFESSIONAL CORPORATION
MEMORANDUM
TO: Chair and Members of Board of Directors
Orange County Sanitation District
FROM: General Counsel
DATE: September 15, 2003
RE: District's Kings County Property—Application for Adjustment
of Supplemental Fees Imposed by Kings County Assessor
As the Directors will recall, in June, 2000, the District acquired ten (10) parcels of
land in Kings County from Mr. Sheen Magan, totaling approximately 1,808 acres. The
purpose of the acquisition was to continue the long-established practice of the land
application of biosolids in conjunction with commercial agricultural operations on the
entire site. At the time of purchase, the property was enrolled in a 'Williamson Act"
contract, and in full accordance with all applicable regulatory requirements.
The Williamson Act is California's primary farmland preservation law. The
purpose of this Act is:
1. to preserve the maximum amount of agricultural land to maintain
agricultural economy in the State;
2. to discourage premature and unnecessary conversion of agricultural land
to urban use;
3. to discourage adjacent urban development; and
4. to preserve the open space and aesthetic values of agricultural lands.
The Program allows property owners to maintain a feasible operation by reducing
property taxes while the property is used for agricultural purposes.
After acquiring the property, the former owner continued in possession as the
District's "tenant", and continued to employ materially the same agricultural practices as
before, including the land application of biosolids.
Agenda
Book Page 12
WHEREAS, on September 12, 2003, District filed an Application with the
CelHomia State Board of Equalization and the Kings County Board of Supervisors for
purposes of reviewing, equalizing, and adjusting the assessed values of the District's
property made by the Kings County Assessor.
NOW,THEREFORE,the Board of Directors of the Orange County Sanitation
District,
DOES HEREBY RESOLVE, DETERMINE,AND ORDER:
Section 1: That the purchase by District of ten (10) parcels of land totaling
approximately 1,808 acres in Kings County was for the sole purpose of continuing the
long-established practice of the land application of biosolids, in conjunction with
commercial agricultural operations on the entire site in a manner permissible under the
Williamson Act and in full accordance with all applicable regulatory requirements.
Section 2: That the Board of Directors finds and holds that its Kings County
property is entitled to tax treatment as provided by the Williamson Act;that the property
was not properly assessed by the Kings County Assessor; and that the assessed value
of the subject property should be reduced to the correct amount as provided by law.
Section 3: That the Board of Directors hereby authorizes the filing of an
Application with the California State Board of Equalization and the Kings County Board
of Supervisors requesting the review, equalization, and adjustment of the imposed
assessed values of the District's property made by the Kings County Assessor.
Section 4: That the District's General Counsel and General Manager, or his
designee, are hereby authorized to execute any documents related to the Application
and are authorized to appear and represent the District in all proceedings, with authority
to bind the District.
PASSED AND ADOPTED at a regular meeting held September 24,2003.
Chair
ATTEST:
Board Secretary
wsas-TLw:pi:oaleros:nn42oe 2
Book Page 13
STEERING COMMITTEE Meetlrg0a092403te To Bd.of or.
AGENDA REPORT (tern Number Iban Number
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. Report on Long-Range Biosolids Management Plan product
technologies ratings review and treatment facilities model
2. Status report on O&M Reinvention and DART program
PDC Committee: 1. Ratify Change Order No. 9 to Job No. P1-37, Primary
Clarifiers Nos. 16-31 and Related Facilities at Plant 1
2. Ratify Change Order No. 3 to Job No. 1-2-4, Bushard Trunk
Sewer Rehabilitation
3. Ratify Change Order No. 2 and Approve Closeout Agreement
and Notice of Completion for Job No. J-90, Engineering Trailer
Complex at Plant No. 1
4. Ratify Change Order No. 3 to Job No. J-35-2, Area
Classification Study Implementation Plan, Plants 1 and 2
5. Ratify Change Order No. 1 and Approve Closeout Agreement
and Notice of Completion for Contract No. 5-56, Drain System
for North Pacific Coast Highway Force Main
6. Approve Amendment No. 2 to PSA and ratify Change Order
No. 1 to Job No. J-87, Short-term Ocean Ouffall Bacteria
Reduction
7. Approve PSA for Job No. J-71-8, Rehabilitation of Odor
Control Facilities
8. Authorize GM to execute a PSA for Job No. P1-82, Activated
Sludge Plant Rehabilitation
9. Approve budget increase and Amendment No. 1 to PSA for
Contracts &-36, Gisler-Redhill Trunk Improvements Reach "A";
Book Page W
7-39, Orange Trunk Improvements; and 7-41, Gisler-
Redhill/North Trunk Improvements
10. Report on Job No. J-4-7, Long-Range Biosolids Management
Plan
11. Report on Construction Outreach
FAHR Committee: 1. Consider Capital Facilities Capacity Charges
2. Consider Annexation Charge Policy
3. Consider Internal Auditing Firm
4. Consider Revised Purchasing Resolution
5. Changes to Human Resources Policies and Procedures
6. Changes to Safety Policies
7. Status Report on Meet and Confer
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
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Page 2
Book Page 15
STEERING COMMITTEE MeetinBDate To Bd.ofDi,.
9/24/03
AGENDA REPORT Item Number Item Number
oc
Orange County Sanitation District
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 24, 2003 meeting.
SUMMARY
Staff routinely prepares for the Steering Committee lists 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 24,
2003 meeting:
12. OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE (OMTS)
OMTS Consent Calendar
a. Order draft Operations, Maintenance and Technical Services Committee Minutes
for the meeting held on September 3, 2003 to be filed.
b. Approve Change Order No. 3 to Purchase Order No. 101327-OA issued to Baker
Tanks, Inc. for the rental of chemical tanks for the Short Term Ocean Outfall
Bacteria Reduction,Job No. J-87, providing for a time extension from October 1,
2003 to January 31, 2004,for an additional amount of$36,109.60, increasing the
total amount not to exceed $130,000.
C. Approve a Professional Services Agreement with PSOMAS Consulting for
development of an Enterprise Geographic Information System (GIS) Strategic
Plan, Specification No. S-2003-1336D,for an amount not to exceed $221,250.
d. Approve a sole source Consultant Services Agreement with Linjer Inc., providing
for continuing consulting services to manage the completion of the O&M
Reinvention Project for an amount not to exceed$140,000, effective
September 27, 2003 through September 26, 2004, with an option to renew the
contract for one year at the same cost.
OMTS Non-Consent Calendar
e. Consideration of items deleted from OMTS Committee Consent Calendar, if any.
Book Page 16
13. PLANNING. DESIGN AND CONSTRUCTION COMMITTEE(PDC)
PDC Consent Calendar
a. Order draft Planning, Design and Construction Committee Minutes for the
meeting held on September 4, 2003 to be filed.
b. (1) Approve a budget amendment of$16,516 to Covey Lane Pump Station
Abandonment, Contract No. 7-14-4,for a total budget of$169,516;
(2) Ratify Change Order No. 2 to Covey Lane Pump Station Abandonment,
Contract No. 7-14-4, with Unity Constructors, authorizing an addition of$16,097
and a time extension of 15 calendar days, increasing the contract amount to
$65,724; and,
(3)Accept Covey Lane Pump Station Abandonment, Contract No.7-14-4, as
complete, authorizing execution of the Notice of Completion and approving the
Final Closeout Agreement.
C. Ratify Change Order No. 4 to Standby Power and Reliability Improvements, Job
No. J-33-1 A,with Southern Contracting Company, authorizing an addition of
$15,020 and a time extension of 90 calendar days, increasing the contract
amount to$6,703,201.
d. Approve funding for the FY 2003-04 Cooperative Projects Program in the amount
of$175,000 for the City of Anaheim, Contract No. CP-0301.
e. Approve Addendum No.2 to the Professional Services Agreement with Lee &
Ro, Inc., providing for additional design engineering services for Replacement of
the Bitter Point Pump Station, Contract No. 5-49; Replacement of the Rocky
Point Pump Station, Contract No. 5-50; Rehabilitation of the 14'" Street Pump
Station, Contract No. 5-51; and Rehabilitation of the"A"Street Pump Station,
Contract No. 5-52,for an additional amount of$447,047, increasing the total
amount not to exceed$2,092,095.
I. Approve Addendum No. 2 to the Professional Services Agreement with Water 3
Engineering, Inc., providing for additional engineering design services for Peak
Flow Management, Job No. J-67,for an additional amount of$84,983, increasing
the total amount not to exceed$1,103,772.
g. Approve Addendum No. 2 to the Professional Services Agreement with Malcolm
Pimie, providing for additional engineering services for Central Generation
Automation, Job No.J-79, for an additional amount of $862,776, increasing the
total amount not to exceed $1,308,840.
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Book Page 17
h. (1)Approve a budget amendment of$7,735,518 for Effluent Pump Station
Annex, Job No.J-77, for a total project budget of$58,492,518;
(2) Approve plans and specifications and Addenda Nos. 1,2, 3, 4, and 5 on file at
the office of the Board Secretary;
(3) Receive and file bid tabulation and recommendation; and,
(4)Award a Construction Contract to J. F. Shea Construction, Inc.for Effluent
Pump Station Annex,Job No. J-77,for an amount not to exceed $44,735,518.
i. Approve a Professional Services Agreement with Fluor Enterprises, Inc.,
providing for engineering services for Plant No. 1 Plant Water VFD Replacement,
Job No. SP-94, for an amount not to exceed $89,700.
j. Approve Addendum No. 1 to the Professional Services Agreement with Walden
and Associates for additional design engineering services and construction
support services for the Big Canyon Trunk Sewer Rehabilitation and
Replacement, Contract No. 5-43-2,for an additional amount of$45,000,for an
amount not to exceed$69,929.
k. Approve Addendum No.2 to the Professional Services Agreement with Tetra
Tech ASL, Inc.for the Warner Avenue Relief Sewer, Contract No. 11-22,
providing for a change in the name of the Consultant to Tetra Tech, Inc. and
providing for additional engineering services for an additional amount of$80,000,
increasing the total amount not to exceed $362,479.
I. (1) Approve plans and specifications for Bayside Drive Trunk Sewer Manholes,
Contract No. 5-22-R1, on file at the office of the Board Secretary;
(2) Approve Addendum No. 1 to the plans and specifications;
(3) Receive and file bid tabulation and recommendation; and,
(4)Award a construction contract to Paulus Engineering, Inc.,for Bayside Drive
Trunk Sewer Manholes, Contract No. 5-22-R1,for an amount not to exceed
$295,345.
PDC Non-Consent Calendar
M. Approve Amendment No. 1 to the Joint Exercise of Powers Agreement for the
Development, Operation, and Maintenance of the Groundwater Replenishment
System and the Green Acres Project, with the Orange County Water District,
which provides for a revised Change Order Policy, except for Item No. 1 of the
Summary of Proposed Construction Change Order Policy, to set a limit of
$1,000,000 for each contract, and refer the revised Amendment back to the Joint
Cooperative Committee for consideration of the change.
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Page 3
PBi.SM. BZ690
Book Page 18
14. FINANCE ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (FAHR)
FAHR Consent Calendar
a. Order draft Finance, Administration and Human Resources Committee Minutes
for the meeting held on September 10, 2003 to be filed.
b. Receive and file Treasurer's Report for the month of August 2003.
FAHR Non-Consent Calendar
C. (1) Adopt a policy allowing property owners who currently use septic tanks to
make annual payments for the Capital Facilities Capacity Charge(CFCC)and
Annexation Fee, if applicable, over a period not to exceed five years at an
interest rate of 3%per year,to be collected on the property tax bill, providing that
the balance shall be paid immediately upon a change in ownership; and,
(2) Refer consideration of providing grants to property owners to the Guidance
Review Committee and the PDC Committee for recommendation to partially fund
the total costs to abandon an existing septic tank, construct a lateral to an
existing local sewer, payment of the CFCC, and payment of an Annexation Fee,
if applicable.
d. Consideration of items deleted from FAHR Consent Calendar, if any.
15. JOINT GROUNDWATER REPLENISHMENT SYSTEM COOPERATIVE COMMITTEE
(JCC)
JCC Consent Calendar
a. Order Joint Groundwater Replenishment System Cooperative Committee
Minutes for the meeting held on August 11,2003 to be filed.
JCC Non-Consent Calendar
C. Consideration of items deleted from JCC Consent Calendar, If any.
16. Adopt Resolution No. OCSD 03-21,Authorizing the Filing of an Application for Review,
Equalization, and Adjustment of Assessments of the District's Kings County Property
with the California State Board of Equalization and Kings County Board of Supervisors.
17. (1) Approve a Real Property License Agreement with Huntington Beach Union High
School District(HBUSD), providing for use of HUBHSD property for a temporary fire
station for a period of three months in connection with Bushard Trunk Sewer, Job
No. 1-2-4, in a form approved by General Counsel;
(2)Authorize a time extension to said Real Property License Agreement, 4 necessary;
and,
(3)Approve an Indemnification Agreement with the City of Huntington Beach and
HBUHSD, providing for indemnification of each party to the agreement to the other
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Book Page 19
parties for negligence, wrongful acts, and omissions in connection with the temporary
fire station, in a form approved by General Counsel.
18. (1) Approve plans and specifications for Secondary Treatment Facilities Process
Upgrades at Plant No. 2, Job No. P2-47-3, on file at the office of the Board Secretary;
(2) Approve Addenda Nos. 1, 2, 3, and 4 to the plans and specifications;
(3) Receive and file bid tabulation and recommendation; and,
(4) Award a construction contract to Morrow-Meadows Corporation, for an amount not to
exceed $4,712,000.
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
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ROVUBO: SQa„ Page 5
Book Page 20
ORANGE COUNTY SANITATION DISTRICT
(714)962-2411
Mailing Address:
P.O. Box 8127
Fountain Valley, California
92728-8127
Street Address:
10844 Ellis Avenue
Fountain Valley, California
92708-7018
OCSD 2/13/03