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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. miffed by: JeA Tappan e ring Committee Secretary Q'My W y..ael4aMp Cam,iiwdJ9lSEr�aaf SC u:vanUrc 1 ORANGE COUNTY SANITATION DISTRICT H BOARD SECRETARY (2) NOTE EARLY START P�: 41 962-241 1 +� ALSO NOTE THAT STEERING COMMITTEE WILL INITIALLY MEET IN 41 M6 56 CLOSED SESSION a 9a Vatbwy. y.a4 9zrze-9m ,er...: Htie Avenue vamy,c4 NOTICE OF MEETING 827MM16 OF THE •w.m.a STEERING COMMITTEE • ORANGE COUNTY SANITATION DISTRICT uu.. ArvMm WEDNESDAY, SEPTEMBER 24, 2003 - 4PJL - fiuen.pan: �1p.aa - vaaer pwaron on.e DISTRICT'S ADMINISTRATIVE OFFICE 10844 ELLIS AVENUE p FOUNTAIN VALLEY, CALIFORNIA 92708 ca a.� 9aa�n aa�e �i,Me[.wMie eae�na A regular meeting of the Steering Committee of the Board of Directors of S. Orange County Sanitation District will be held at the above location, date and roa. time. Note that the meeting will begin one hour earlier than usual. uwe a.vkc. naaa :4Ytl4sy Gar nr.atw Raarn - _ To maintain.111E less lee4ersnip in wastewater entl water resource management. 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 jt 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 al"WlagerW�VCmuM WWUCale msC MMule 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 jt c A.y.wuo.,awo . �wasEroszaw un a ass is ma,aoc 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. G:k" maupenaVSi nC ftmre hSEPQ 24N UV a Ms 1w SEP Away Mc n.,,. a MS Page 2 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. c,.,p Cm.,:n«nnssrwaas uu a ra.m,ssv eway.am 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 �+^H9 me`+YnYaW eanm Lur�orV hSEFpT[b]LLn d Nb br&EP aou0o.0oc Page 4 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 G\q Na%gcnEaWa gL­1ee MET 2400 Lv d ARS(a,SEP&W WNC 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