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HomeMy WebLinkAbout2003-10 DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, October 22, 2003 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, October 22, 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: OTHERS PRESENT: Directors Present: Thomas Nixon, General Counsel Shirley McCracken, Chair Don Hughes Steve Anderson, Vice Chair Scott Baugh Jim Ferryman, Chairman, OMTS Committee Larry Kest Brian Donahue, Chairman, PDC Committee Eric Saperstein Brian Brady, Chairman, FAHR Committee Chris Townsend Jim Silva, County Supervisor Chris Massey Norm Eckenrode, Past Board Chair Mike Moore Tod Ridgeway, Director, Guest Sonja Wassgren Gerhardt Van Dreis Directors Absent: Randy Fuhrman None STAFF PRESENT: Blake Anderson, General Manager Bob Ghirelli, Director of Technical Services FILED Patrick Miles, Director of Information Technology IN THE OFFICE OF THE SECRETARY Carol Beekman, Communications Services ORANGE Cr"" -"-AN eISTRICT Manager NOV 19 2003 Jim Colston, Legal and Regulatory Affairs Liaison K Layne Baroldi, Legal and Regulatory Affairs BY _i _ Liaison Jean Tappan, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS Gerhardt Van Dreis stated that he had submitted an unsolicited joint venture proposal to operate secondary treatment processes and has not received a reply. Chair McCracken asked staff to prepare a response. Minutes of the Steering Committee Page 2 October 22, 2003 Randy Fuhrman asked the legislative consultants to discuss how they will deal with trying to get funding when there are so many other issues also seeking the same funds. He also asked that alternative treatment processes be considered and stated he was interested in the directors' compensation discussion. (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the September 24, 2003 Steering Committee meeting were approved as drafted. (6) REPORT OF THE COMMITTEE CHAIR Committee Chair Shirley McCracken asked Directors Brady and Anderson to provide an update on their review of the Directors reimbursement policies. They provided a draft with only three major changes: definition of what constitutes a meeting; how meetings are authorized;and how much compensation is received. Blake will ask Lisa Tomko, Gary Streed and General Counsel to review the proposed changes and it will be returned to the Steering Committee in November for further consideration before presentation to the Board. (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson said that he was pulling agenda item 6.A. Chair McCracken stated that Tom Woodruff will be addressing the Board on the subject in November in Closed Session. A breakdown of litigation fees will be provided at that time. Mr.Anderson announced that there were still seats available for the 2004 Economic Forecast Conference for Orange County that is being held on October 28. He reported that meetings are ongoing with SAW PA to negotiate an agreement based on the term sheet that was approved by the Board. There is another meeting scheduled for October 24 and he hopes to bring the agreement to the Board in November. EMT and staff are working together on strategic planning activities. This process should take another 16 to 20 weeks and will be used during the preparation of the 2004-05 budget. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Nixon reported that the arguments were held today in the appeal hearing on the Crow-Winthrop case was held today. The judge has 90 days to make an opinion. General Counsel Tom Woodruff represented the District. (8) DISCUSSION ITEMS (Items A-D) A. Update on Biosolids Program and Costs Layne Baroldi reported on ongoing activities and what is planned until such time as the Biosolids Management Strategic Plan is approved. One-half of the Minutes of the Steering Committee Page 3 October 22,2003 biosolids is going to Tule Ranch at a cost of between $33-35/ton. Staff was asked to prepare a detailed breakdown of the contract terms and costs for the November 5,2003 OMTS Committee meeting. B. Legislative Briefing by Consultants Chair McCracken commented that during 2003 legislative calendar the District hired four legislative advocates to assist the agency in forwarding its legislative agenda and respond to legislation of interest to the District. Each of those consultants provided the Committee with a brief update on the status of their efforts. Our federal legislative consultants, Eric Saperstein and Larry Kest (partner of John Freshman), updated the committee on their activities for the past year and their plans for 2004. Their consulting services focused on acquisition of federal funding for the secondary treatment expansion through EPA assistance grants. They have been building support for our request with the Orange County and California delegation in Washington and will continue to work to get this project into the EPA budget as a line item. The first year is always the hardest. Congressman Christopher Cox has asked to keep this project in view and has indicated that he will speak to the Chair of the Appropriations Committee to help him understand the project and the need for funding. It is important that the message be reinforced to our Washington delegation. Directors Jim Silva and Tod Ridgeway reported on their trip to Washington, DC.They were accompanied by Bob Ghirelli and our federal legislative consultants. They appreciated the work that the consultants did to set up the various meetings with the delegates and staff members,which were very focused and effective. Director McCracken thanked Directors Silva and Ridgeway for making the trip to Washington last week to help sell our project. It is important that through our consultants we are vigilant in our efforts to keep our goals in mind. Scott Baugh reported on the state legislative initiatives he was working on and most recently, his activities in the areas of biosolids and urban runoff funding. He will continue to work to amend the state constitution to allow the assessing of fees to treat urban runoff. There is a need to educate the public and those organizations that have expressed concerns, such as Howard Jarvis and the Orange County Taxpayers. Mr. Baugh is also working with the District on a state-wide biosolids policy, using a two-year bill that is now parked"at our request of the author, Ken Maddox. If the State Water Board takes on the issue through language in its General Order for Biosolids,then the bill won't be necessary. He also discussed budget impacts and how the govemor-elect may address these problems. There may be some special sessions of the assembly this fall to deal with the budget issues. Christopher Townsend and his firm are focused on acquisition of state funding for District projects including fats, oil and greases, Santa Ana River Interceptor line and other projects through Propositions 40 and 50 and other grant sources. He indicated that all of the Proposition 50 money has been given to the Department of Water Resources for distribution. They will be working to get funds identified for the District. After a brief question and answer period, the Directors agreed that the services provided by the three firms could not be accomplished with OCSD staff alone and felt that all -Mnutes of the Steering Committee Page 4 October 22, 2003 were representing the District professionally and effectively. Mr. Saperstein stressed that continued participation by the Directors will be required to make the team effective. He also thanked the staff for their assistance and responsiveness in providing such high-quality information for them. B. The Agenda Items scheduled to be reviewed by the Board's working committees in November were reviewed. Director Brady asked if the MOUs were going to be presented to the FAHR Committee in November. Mr. Anderson said that he was happy to report that all of the bargaining units have signed and the MOUs will be presented to the directors in November. C. The agenda items scheduled to be presented to the Board at tonight's meeting were reviewed. (9) OTHER BUSINESS,COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY Director Eckenrode announced that he met with the mayor of Anaheim, Curt Pringle, and briefly discussed the GW R System project. Mayor Pringle has asked to meet with the general managers of the Orange County Water District and the Sanitation District to discuss this project and the possibility of landscaping the settling basins. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEOUENT MEETING There were none. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (12) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, November 19, 2003 at 5 p.m., one week earlier than usual. The next Board Meeting is scheduled for Wednesday, November 19, 2003 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:42 p.m. in Closed Session, pursuant to Sections 54957.6 to discuss the General Managers performance evaluation and compensation. 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 Minutes of the Steering Committee Page 5 October 22, 2003 Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. A report of the recommended actions will be publicly reported at the time the approved actions become final. At 6:55 p.m.,the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:55 p.m. S tted by: WWring Tappan ring Committee Secretary G:lvfte0e�4R "CommltleaWmn1b14A9"ft scMwMs Eoo ORANGE COUNTY SANITATION DISTRICT BOARD SECRETARY (2) m ssz-za11 NOTE EARLY START TIME fn: a)%2A356 - sr.awdwm ..Hi,q.mr...: PC 6m 3127 T'°"°"°e°°+`G' NOTICE OF MEETING 82728.8127 OFTHE tiaSTEERING COMMITTEE Sci aa,nm ,, co% Foulc92 06-7 18 sz7caao,e ORANGE COUNTY SANITATION DISTRICT lliia r ay.,cla • WEDNESDAY, OCTOBER 22, 2003 - 4 P.M. Gan Aeheim area DISTRICT'S ADMINISTRATIVE OFFICE Buena Pe Q I - 10844 ELLIS AVENUE 1e vet n FOUNTAIN VALLEY, CALIFORNIA 92708 in erton n &m,r Baath Irnne e 4abra Up Palma aamwa A regular meeting of the Steering Committee of the Board of Directors of oBe' Orange County Sanitation District will be held at the above location, date and PycenGe time. Note that the meeting will begin one hour earlier than usual. Santa Ana Seel Beam santan r Ran Yoe Pert Yuele Llntle ermq a 0,.... S.Wital Gi.tHdw. (tetra Mesa M Caay G), wnekt. —a Ranch To maintain worlbcless leadership in wastewater and water resource menagemen[. 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 (t) Roll Call: Meeting Date: October 22, 2003 Meeting Time: 5 o.m. Meeting Adjourned: Committee Members Shirley McCracken, Board Chair Steve Anderson, Board Vice Chair Brian Donahue, Chair, PDC Committee Jim Ferryman, Chair, OMITS Committee Brian Brady, Chair, FAHR Committee Jim Silva, Supervisor Norm Eckenrode, Past Board Chair Tod Ridgeway, Director, Invited Guest............. Others Thomas L.Woodruff, General Counsel Don Hughes ScottBaugh............................................................. JohnFreshman........................................................ EricSaperstein........................................................ ChrisTownsend....................................................... 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 Cotten, 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, OCTOBER 22, 2003 AT 4 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California Agenda Postina: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the Districts 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 Posted: 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). Meetina Adjournment: This meeting may be adjourned to a later time and hems 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 I -2- October 22, 2003 Agenda (3) PUBLIC COMMENTS All persons wishing to address the Steering Committee on specific agenda items or matters of general interest should do so at this time. As determined by the Chairman, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). (4) APPROVE MINUTES OF PREVIOUS MEETING Approve draft minutes of the September 24, 2003 Steering Committee meeting. (5) REPORT OF COMMITTEE CHAIR A. Update from Task Committee on Approval and Compensation for Directors' Meeting Attendance (Directors Brady and Anderson) (6) REPORT OF GENERAL MANAGER A. General Counsel Contract Terms (7) REPORT OF GENERAL COUNSEL (8) DISCUSSION ITEMS (Items A-D) A. Update on Biosolids Program and Costs (Bob Ghirelli) B. Legislative Briefing by Consultants (Bob Ghirelli) C. Review Agenda Items scheduled to be presented to Committees in November (Information item only) D. Review and consideration of Agenda Items for Board of Directors Meeting of October 22, 2003 (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT Book Page'_' .3- October 22, 2003 Agenda (12) FUTURE MEETING DATES The next Steering Committee Meeting is scheduled for 5 p.m., Wednesday, November 19, 2003. The next Board Meeting is scheduled for 7 p.m., Wednesday, November 19, 2003. (13) CLOSED SESSION During the course of conducting the business set forth on this agenda as a regular meeting of the Steering Committee,the Chair 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 consider General Manager's Annual Performance Evaluation and Compensation (Government Code Section 54957.6) B. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session. (14) ADJOURNMENT It D>WP.DTAO3E4DA4TEERING C0MMnrEFvM0Cn10U00AGENDAD0C 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: Itappan®omd.com Book Page 3 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 Districts Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMM17TEE MEMBERS: Thomas L.Woodruff, General Counsel Directors Present Randy Fuhrnan 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 549572,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. Book Page 4 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; AS 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 agreement 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 Book Page 5 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 50i°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 OCWD 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 Act' 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 Book Page 6 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. bmitted by: J Tappan e ring Committee Secretary G:I„ymelvpwget5mampf aseWISEPD.RGW SL Mmnu.0.r Book Page 7 STEERING COMMITTEE Meeting Date I To ad.of Dr. l0/22/03 AGENDA REPORT I rtP,glNagiber Item Number Orange County Sanitation District Y /r FROM: Robert P. Ghirelli, D.Env., Director of Technical Services Originator: Layne Baroldi, Legal & Regulatory Affairs Liaison SUBJECT: BIOSOLIDS MANAGEMENT UPDATE GENERAL MANAGER'S RECOMMENDATION This is an information only item. SUMMARY OCSD currently contracts with four biosolids management contractors to provide a diverse and sustainable biosolids management program. We recently added three operational Class A biosolids management options. Based on OCSD's annual production of approximately 220,000 wet tons of biosolids per year, staff estimates that the annual biosolids hauling costs for each of OCSD's biosolids management contracts will be as follows: Company Contract Est.Tons Management Cost per Estimated Processing End Per Year' Option(s) Offered Ton Annual Cost Location Synagro 7/2005 60,000 Class B land app. $39.50 $2,370,000 Tribal CA & NV Class A compost $39.50 Tribal CA Class A compost $39.50 Private land AZ CA Soil 312007 40,000 Class B land app. $37.75 $1,530,000 Nye County, NV Products Class A stabilized2 $38.62 Los Angeles, CA Yakima 1/2012 0 Landfill cover $36.00 $0 La Paz County, AZ Tule 2/2004 120,000 Class B land app. $38.75 $4,200,000 Yuma County, AZ Ranch Landfill disposal° $32.75 Kern County, CA Class A stabilized $35.00 Kern County, CA Class A stabilized $33.00 Kings County, CA 'Based on approximately 220,000 tons of biosolids produced per year. Actual tonnage allocations to management options will vary throughout the year due to inclement weather,operational problems, regulatory developments, and other unanticipated factors. 3 CA Soil Products(CSP) is expected to begin its Class A biosolids stabilization operation in late 2004. The facility's maximum capacity will be 300 tons per day. In the future,the vast majority of the biosolids managed by CSP will be chemically stabilized. The Nye County, NV Class B biosolids land application operation commenced in June, 2003. The estimated future annual cost is based on an average biosolids management cost of$38.25. a The Yakima contract is not being utilized at this time due to Yakima's inability to obtain a performance bond that is satisfactory to La Paz County, AZ. "Estimated annual cost based on an average cost of$35.00 per ton. The landfill disposal option is expected to be available in late 2004. G*p.dta\agenda\Steering Commmee103tOCT\102203 Biosollds Update AR.doc Page i ECW6200.B 10/3V03(wh) Revision 001 Book Page 8 PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY No amendments of contracts are being requested at this time. BUDGETIMPACT ❑ This item has been budgeted. (Line item: Section 8, Page 124) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION A presentation will be given at the meeting. ALTERNATIVES None CEQA FINDINGS N/A ATTACHMENTS G9wp.Cta\agenda\Bteenng Committee\03\0CTM2203 Biosolids Update AR.dw Page 2 ECW620/LB 10/3/03(wh) Revision 001 Book Page 9 STEERING COMMITTEE Meeun9 Date To ad.of Mr. 10/22 03 AGENDA REPORT 1tP0,iNury}er Item Number Orange County Sanitation District Y '�J FROM: Robert P. Ghirelli, Director of Technical Services Originator: James Colston, Environmental Compliance and Monitoring SUBJECT: Legislative Advocacy GENERAL MANAGER'S RECOMMENDATION Information Item SUMMARY During the 2003 Legislative Calendar, the District hired four legislative advocates to assist the agency in forwarding its legislative agenda and responding to legislation of interest to the District. Each of these consultants will provide the Board with a brief update on the status of their efforts. Each presentation will include a list of accomplishments, current activities, and a plan for the future. The Committee will have an opportunity to discuss these efforts with each of the consultants. PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY Monthly contract costs per consultant: • ENS Resources (Eric Sapirstein) and Freshman and Kast (John Freshman and Larry Kest) - $15,000 • Mayer, Brown, Rowe & Maw (Scott Baugh) - $5,000 • Townsend Public Affairs (Chris Townsend) - $5,000 (Does not include GWRS) BUDGET IMPACT ® This item has been budgeted. (Line item: (General Manager's Budget (Jean Tappan)) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION Sapirstein/Freshman/Kast: consulting services focused on acquisition of federal funding for the secondary treatment expansion, through EPA assistance grants. JC-" c+.m.m.+o.+•.�•cm.,.v«eaocn,mzm,w rarxw.sem.w_aac Page 1 Book Page 10 Townsend Public Affairs: consulting services focused on acquisition of state funding for District projects (Fats, Oils, and Greases, Santa Ana River Interceptor line, etc.) through Propositions 13, 40, 50 and other grant sources. Scott Baugh: consulting services focused on state legislative initiatives to support District goals, most recently in the areas of secondary treatment, biosolids, and urban runoff. ALTERNATIVES N/A CEGA FINDINGS N/A ATTACHMENTS Each of the consultants has attached an outline of their respective presentations. Jc:w O\". a�WdaZleMny Co tlfl W]1 1p( 3MAPr PnvnWW nnam: lnaoa�„ro Page 2 Book Page 11 MEMORANDUM TO: Orange County Sanitation District FROM: Scott R. Baugh DATE: October 10, 2003 SUBJECT: Scott Baugh Tasks for 2004 (Meeting Notes) Pursuant to your request, outlined below is a status of our work for the Orange County Sanitation District since the legislature adjourned in August of 2002. On September 28, 2002, we secured the Governor's signature on AB 1969 that was initially opposed by the Sanitation District due to the fact that it interfered with a local government decision. The bill was introduced by Assemblymember Maddox to eliminate the 301(h) waiver, a matter that was subsequently voted on by the Sanitation District Board in the summer of 2002. Once the Board voted to eliminate the waiver, the Sanitation District was faced with the prospect of incurring millions of dollars in mandatory minimum penalties during the interim period of increasing treatment levels. With the help of then-assemblymember Bill Campbell, we amended AB 1969 to provide the Sanitation District with an exemption from the mandatory minimum penalties. During the fall, we received marching orders to deal with two pressing issues facing the Sanitation District, i.e., urban runoff and biosolids. We were asked to secure authors and have the Sanitation District sponsor legislation dealing with these important issues. As you know, on June 28, 2002, Governor Davis signed AB 1892, which was a bill sponsored by the Sanitation District. That bill gave the Sanitation District charter authority to treat urban runoff. The challenge we had, however, was that the Sanitation District did not have authority to spend money on any treatment program with a 2/3 vote pursuant to proposition 218 and the California Constitution. Thus, we sponsored and introduced ACA 10 through Assemblymember Harman which would allow local governments to assess fees on property owners for the purpose of treating urban runoff. We were also able to secure the Planning and Conservation League as sponsors of the bill, as well as support from business interests so that we could have broad support for the measure. Due to the state budget crisis, however, all involved agreed that we should wait until 2004 to pursue this measure. The measure now sits on the Assembly Floor. Assemblymember Harman is waiting for our direction as to when to move the bill forward. Our plan at this point is to wait until the March 2, 2004 primary is over before we move the bill forward. Some members are concerned that the bill will be viewed as a tax increase, which could be used against them in a campaign. In addition to ACA 10, we continue to evaluate other methods of Book Page 12 Orange County Sanitation District Page 2 of 3 October 10, 2003 obtaining funding for urban runoff treatment through the state budget process and through bonds that are anticipated to be proposed to the voters. With respect to the biosolids issue, we secured Assemblymember Maddox to introduce a bill that would deal with biosolids from a statewide perspective. That bill is AB 1427. The bill has been processed through the Assembly and the Senate policy committees. It is now sitting in the Senate Appropriations committee. At this point, we agreed to hold the bill in the Appropriations committee until the State Water Resource Control Board adopts its General Order relating to biosolids. The bill is functionally operating as a hammer to force the State Water Resource Control Board to adopt language in the General Order that is acceptable to the Sanitation District. In addition to sponsored bills, we continuously monitor and lobby bills of interest to the Sanitation District. There were three major items of interest this year. For example, AB 496 was a bill introduced by Assemblymember Correa relating to creating a conservancy along the Santa Ana River. Although the Sanitation District did not disagree with the bill entirely, there were many issues in the bill concerning governance and operation of the conservancy. We relayed those issues to Assemblymember Correa and his staff. While the bill had tremendous momentum through the legislative process, the bill ultimately was stripped in Senate Appropriations and converted to another topic. The second item was the budget bill. Whenever there is a deficit, the state goes looking for money from special districts and the local government. We continuously monitored the budget process and kept the Sanitation District updated regularly. Fortunately, there were no raids of special districts in the budget this year. Finally, we provided regular updates on Proposition 53, which would have provided infrastructure funding for the State of California. That measure, however, failed passage at the ballot box during the recent recall election. Moving forward, we shall continue to focus on our two sponsored bills relating to urban runoff and biosolids. In addition, we shall focus this fall on meeting new members of the Governor Schwarzenegger administration to educate them on issues of concern to the Sanitation District. In particular, we shall lobby budget issues as they are being developed by the new administration. We shall also continuously monitor bills of interest to the Sanitation District and take action where we are directed to take action. Finally, we shall continue to participate in our weekly telephone conference calls with the Sanitation District. GAwp.dteUst820tGENERAL DATAWgenda Repods\St"dngVC ScotlBeugh_LegieletNeAdv cy Steering-10-2003.doo Book Page 13 Federal Legislative Update Eric Sapirstein,ENS Resources,Inc. John Freshman and Larry Kasl, FreshmanKast, Inc. October 10,2003 BACKGROUND • Over the past several months, the Orange County Sanitation District(OCSD) has implemented a federal legislative program to obtain federal assistance to support its effort to comply with Clean Water Act water quality mandates referred to as secondary treatment compliance. • The decision to pursue federal assistance was based on past federal commitments to other coastal communities, including the City and County of Los Angeles that faced similar challenges of transitioning from a 301(h) permit condition to full secondary treatment compliance. • This program is a two-phased program. • The current activities described in the Status section follow the Phase I. This involved working with OCSD's congressional delegation, stakeholders and others to secure a congressional directive to the U.S.Environmental Protection Agency (U.S. EPA) that any agreements between OCSD and U.S. EPA would not expose OCSD to unreasonable or unwarranted litigation during the transition to secondary compliance permit conditions. • This effort was successful. It helped to establish a sound working relationship with U.S. EPA Region 1X officials and Headquarters Office of Water officials. • Phase II of the legislative agenda involves seeking federal assistance for the costs associated with the planning,design/engineering and construction of necessary wastewater treatment facility upgrades. • OCSD held meetings with the congressional delegation in early spring 2003 to apprise them of the legislative priority of the requested assistance. Briefings were also held with the key appropriations committee staff to review the project and its benefits. At the same time,outreach with stakeholders was initiated that generated additional support for the legislative priority. • This support was communicated to the congressional delegation. After receiving support from the delegation for the priority, the next step involved the development of justification documents and supporting materials for the requested assistance that were submitted to the Committee on Appropriations in the House and Senate. Book Page 14 Federal Legislative Update Page 2 of 3 October 10, 2003 • OCSD's congressional delegation also submitted a joint letter of support for the request to the Committee on Appropriations' subcommittee with jurisdiction over U.S. EPA spending programs. • OCSD also sponsored a legislative tour of its plant to delegation staff to provide a thorough understanding of the physical and technical challenges that it would address in the transition to secondary treatment compliance. STATUS OF PHASE H: FEDERAL ASSISTANCE TO COMPLY WITH SECONDARY STANDARDS COMPLIANCE • Over the past three months, the House and Senate Committees on Appropriations acted on their respective U.S.EPA funding measures. Both bills curtailed spending for U.S. EPA's wastewater treatment facility construction program (STAG)by approximately$300 million limiting the number of new project starts. • These restrictions resulted in limited funding assistance being provided to wastewater treatment systems with a preference for funding ongoing projects. • As a result, the House was unable to provide funding assistance for the project request in the first round of decision-making. • In the Senate,only five California projects were funded with two targeted to support clean up of PERC contamination. • The severe budget constraints have stymied the House and Senate in its efforts to meet to reconcile the differences between the two versions of the spending measure. As has been the case in recent years, the federal government is currently operating under a stopgap spending measure until agreements can be reached. This has placed all project set-aside spending decisions on hold allowing further consideration of priorities such as OCSD's request. • Congress may develop an "omnibus"-spending spending bill,wrapping into it most federal agency budgets perhaps providing additional spending authority to permit funding of project requests, like OCSD's,that were not incorporated into the original spending bill. • As of this writing, OCSD's assistance request has been reaffirmed by Representative Christopher Cox as part of any Committee on Appropriations final spending bill for U.S.EPA. Contacts with the other members of OCSD's Book Page 15 Federal Legislative Update Page 3 of 3 October 10, 2003 congressional delegation have also been contacted to seek their support of the project request as part of a recent visit to Washington by OCSD. • Discussions with OCSD's Senate delegation also reaffirmed a strong interest in working to provide funding assistance as the House and Senate begin deliberations on a final spending bill. NEXT STEPS • Based on the delegation's continued support of OCSD's request for assistance in fiscal year 2004, the critical next steps will involve: o Monitoring the progress of congressional efforts to finalize an U.S. EPA budget; o Working with committee staff to ensure that they have any additional information in support of request; o Advising the congressional delegation on any additional input that may be required; and o Advising OCSD about any supplemental support that may be required to support efforts to include funding in any final compromise-spending bill. • In anticipation that the delegation will succeed in securing federal assistance to initiate a federal partnership with OCSD, the Steering Committee should meet with its advocacy team to review a proposed plan of action to be initiated during the second session of Congress. • Additionally, with the recent outcome of the recall, OCSD should integrate its Sacramento-based advocacy program to secure the new Administration's active support of OCSD's initiative with its congressional delegation as a priority during the next budget cycle. G9wp.du\a\620\GENERAL DATA\Agenda Rgpu St..i oQSapirs¢iv_LegisWduv Adv.y_Steeling-10-2003.dm Book Page 16 `i'mselld PUBLIC AFFAIRS, INC. MEMORANDUM TO: Orange County Sanitation District FROM: Christopher Townsend, President Sean Fitzgerald, Client Manager DATE: October 9, 2003 SUBJECT: Summary of Grant Activities and Outlook for 2004 Townsend Public Affairs, Inc. serves OCSD primarily in a grant support capacity, working directly with staff to maximize the District's efforts to secure public funding for capital projects. Within this scope of work, we perform the following functions: • Identification of funding opportunities appropriate to the District's capital projects. • Direct engagement with legislative leadership, agency leadership and staff, and other stakeholder in the establishment of criteria for new grant programs. • Assistance with preparation of grant applications and other submissions. • Preparation of project summaries and other communications promoting the project to legislators and policymakers, including coordination of support letters. • Comprehensive process management throughout the grant cycle, including continuous proactive engagement with agency staff. • Proactive engagement with the Governor, legislative leadership, agency leadership and any other officials relevant to the ultimate award decision. Over the past six months, TPA has worked diligently to engage actively on grant applications already submitted, as well as to identify new opportunities, and even repackage existing capital projects. TPA maintains close communication with OCSD staff and remains up to date on the breadth of the District's capital project needs. This allows our team to quickly match these projects with potential funding sources and work efficiently with staff to maximize resources. The following are a few of the priority projects currently being pursued: • FOG Study Phase If: Status/2003 Accomplishments ✓ Submitted as a Concept Proposal through the State and Regional Water Quality Control Board consolidated grant process. ✓ TPA has worked with Richard Katz, Chair of the SW RCB, in concert with OCSD staff's work with the RWQCB. ✓ The project has now been approved for submission of a full proposal and asked to submit that proposal as early as possible to expedite potential funding. Strategy for2004 ❑ Communicate support of legislative delegation through final award decision ❑ Update and redistribute project summaries ❑ Continue proactive engagement with Richard Katz, who will remain as Chair of the State Water Resources Control Board. Book Page 17 Orange County Sanitation District Page 2 October 9, 2003 • SARI Line: Status/2003 Accomplishments ✓ Recent negotiations among stakeholders have put this project in a position to move forward ✓ TPA has engaged directly with Richard Katz and supplied information regarding the most recent project scope. ✓ TPA continues to research appropriate funding sources, primarily through Prop. 50 funding programs which have yet to be defined. Strategy for 2004 ❑ Work with OCSD staff and the RWQCB to re-establish SARI line as a priority project in the region ❑ Continue proactive engagement with Richard Katz, appropriate legislative leaders and agency staff. ❑ Participate actively in upcoming regional stakeholder process regarding Prop. 50 funding to ensure that SARI line is recognized as regional priority and that eventual criteria are favorable to future applications. • Corrosion Management Program: Status/2003 Accomplishments ✓ Application through Clean Beaches Initiative (CBI) achieved Tier 4 ranking (project was previously unranked) ✓ TPA supplied project summary to Richard Katz, Chair of SW RCB ✓ TPA worked with staff to update and re-position current project information to highlight environmental concerns and the project's specific benefits. ✓ TPA prepared a one-page project summary for use in communicating project benefits to legislators and policymakers. Strategy for 2004 ❑ Continue outreach to county legislative delegation and identify local legislative champion(s) for the project. ❑ Revisit outreach with the Governor's administration, pending appointment of new cabinet officials. ❑ Identify additional potential sources of funding. In addition, TPA has worked in concert with OCSD's state lobbying team to support their work on biosolids reform. In addition, we have worked with the federal lobbying team to support OCSD's ongoing federal appropriations request, both for GWRS and for full secondary treatment. Our team participates actively in the weekly conference calls, which ensure appropriate integration among all aspects of the lobbying and grant support team. In addition, we have established an additional weekly conference call focusing solely on grant support efforts to ensure prompt attention to important tasks and to eliminate duplication of effort. We look forward to continuing this work in the coming year. G1wp.dte\ts\820\GENERAL DATAWgende Repmle\StmdngVC_ChrbtopherTov wnd_.egbla#veAdv ey Steerin¢142003.dw Book Page 18 STEERING COMMITTEE Meetin1a�g Da 10,3e I To ea.or Dr. AGENDA REPORT IItv No Item Number Orange County Sanitation District C% FROM: Blake P. Anderson, General Manager Originator: Jean Tappan, Committee Secretary SUBJECT: November 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 November. 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 November: OMTS Committee: 1. Report on Long-term Biosolids Management Plan Interim Options for Biosolids Management 2. Receive and file Corrosion Assessment Report 3. Ratify change order to Digester Gas Pipeline project PDC Committee: 1. Ratify Change Order 1 to Contract 11-22, Warner Avenue Relief Sewer 2. Ratify Change Order 10 to Job No. P-137, Primary Clarifiers Nos. 16-31 and Related Facilities at Plant 1 3. Ratify Change Order 4 to Job No. J-35-2, Area Classification Study Implementation Plan 4. Approve Amendment 1 to PSA for Job 1-10, Replacement of Ellis Avenue Pump Station 5. Award Construction Contract for Job J-36, Groundwater Replenishment System 6. Approve Amendment 3 to PSA for Contract 11-22, Warner Avenue Relief Sewer 7. Approve budget increase for Contract 6-13-3, Abandonment of Airbase Trunk Sewer-California Street 8. Approve Addendum 5 to PSA re Job J-77, Effluent Pump Station Annex 9. Report on J-40-7, Long Range Biosolids Management Plan FAHR Committee: 1. Consider Annexation Charge Policy 2. Consider Capital Facilities Capacity Charges 3. Consider Revised Purchasing Resolution Book Page 19 4. FY 02/03 Comprehensive Annual Financial Report 5. FY 03/04 First Quarter Investment Management Report 6. Consider 03/04 First Quarter SWAP Report 7. FY 03/04 First Quarter Financial Report 8. Consider Employee Reclassification Recommendations 9. Consider Changes to Rideshare Program PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. (Line item: ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION NA ALTERNATIVES NA CEQA FINDINGS Not a project. ATTACHMENTS NA jt G:\xy.NNw^a�leennp Cammw`UTOLI\tOP3W' wt .aw NOV'. awab: w"8 Page 2 Book Page 20 STEERING COMMITTEE AGENDA REPORT 1IL'�1 NuDmDer IMm NumOer Orange County sanitation District �( FROM: Blake P. Anderson, General Manager Originator: Jean Tappan, Committee Secretary SUBJECT: 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 October 22, 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 October 22, 2003 meeting: Consent Calendar 9. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. (1) Approve Change Order No. 1 to Purchase Order No. 100536-OB, issued to OCB Reprographics for Specification No. 9900-05, for an additional amount of $125,000, for a total amount not to exceed $225,000, providing for additional copying services; and, (2) Provide an additional $125,000 for all remaining renewal periods for Specification No. 9900-05, for a total annual amount not to exceed $225,000. b. (1) Receive and file petitions from Paul Andrews and Janet Harris requesting annexation of .62 acres to Orange County Sanitation District (OCSD) in the vicinity of Orange Park Blvd. and Clark Avenue in an unincorporated area of Orange County; and, (2) Adopt Resolution No. OCSD 03-22, authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-32 — Andrews/Harris Annexation). Book Page'_'1 C. (1) Receive and file petition from DUfkBedfotd C2gU2S�111g a[1�exa��0�Ol .64 acres to Orange County Sanitation District at 251 Country Hill Road,in an incorporated area of Orange County; and (2) Adopt Resolution No. OCSD 03-23, authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-34—Bedford Annexation). d. Authorize the General Manager to execute Quitclaim Deeds to Mousse Essayli and Ward Dixon III and Miriam Dixon for two parcels in the City of Cypress in connection with Los Alamitos Sub-trunk Sewer, Contract No. 3-8, in a form approved by General Counsel. END OF CONSENT CALENDAR 10. Consideration of items deleted from Consent Calendar, if any. NON-CONSENT CALENDAR 11. STEERING COMMITTEE Consent Calendar a. Order draft Steering Committee Minutes for the meeting held on September 24, 2003 to be filed. Non-Consent Calendar b. Review and consideration of agenda items considered by the Steering Committee re the October 22, 2003 meeting. C. Consideration of items deleted from Steering Committee Consent Calendar, if any. 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 October 1, 2003 to be filed. OMTS Non-Consent Calendar if any. b. Consideration of items deleted from OMTS Committee Consent Calendar, a:\xy.NespanNtLaen,q LammieeWTq�fliOPSW and N41m Oct awNr.Eoc flMM: arzaae Page 2 Book Page 22 13. PLANNING, DESIGN AND CONSTRUCTION COMMITTEE (PDC) PDC Consent Calendar a. Order draft Planning, Design and Construction Committee Minutes for the adjourned meeting held on September 18, 2003, and the regular meeting held on October 2, 2003 to be filed. b. Ratify Change Order No. 9 to Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37, with Margate Construction, authorizing an addition of$187,452, increasing the total contract amount to $71,142,093. C. Ratify Change Order No. 3 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, with Steve P. Rados, Inc., authorizing an additional of$44,293 and a time extension of one calendar day, increasing the total contract amount to$30,305,227. d. (1) Ratify Change Order No. 2 for Engineering Trailer Complex at Plant No. 1, Job No. J-90, with Oved Dagan Construction, authorizing an addition of $68,331, increasing the total contract amount to $1,797,149; and, (2) Accept Job No. J-90 as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. e. Approve Amendment No. 2 to the Professional Services Agreement with Black & Veatch Corporation for additional construction support services for Short Tenn Ocean Outfall Bacteria Reduction, Job No. J-87, for an additional amount of$54,447, increasing the total amount not to exceed $909,128. I. Ratify Change Order No. 3 for Area Classification Study Implementation Plan, Plant Nos. 1 &2, Job No. J-35-2, with J.F. Shea Construction, Inc., authorizing an addition of$269,345, increasing the total contract amount to $14,534,262. g. (1) Ratify Change Order No. 1 to Drain System for North Pacific Coast Highway Force Main, Contract No. 5-56, with Ken Thompson, Inc., authorizing an addition of$124,300 and a time extension of 17 calendar days, increasing the total contract amount to $257,350; and, (2) Accept Contract No. 5-56 as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. h. Approve Professional Services Agreement with Camp, Dresser& McKee providing for engineering services for Rehabilitation of Odor Control Facilities, Job No. J-71-8, for an amount not to exceed $3,197,522. G W.EI+I'p�NWwMYCamnerVTOC1�l0i1N W ae MaMOe Bovtrv.0ec a� Page 3 Book Page 23 (1) Approve a budget increase for an additional $415,040 for Gisler- Redhill Trunk Improvements Reach "A", Contract No. 7-36, for a total of $7,066,698; an additional $670,806 for Orange Trunk Improvements, Contract No. 7-39, for a total of$5,297,929; and an additional $3,076,488 for Gisler-RedhilVNorth Trunk Improvements, Contract No. 7-41, for a total of $14,987,780; and, (2) Approve Addendum No. 1 to the Professional Services Agreement with AKM Consulting Engineers, providing for additional engineering services for Gisler-Redhiil Trunk Improvements Reach "A", Contract No. 7-36; Orange Trunk Improvements, Contract No. 7-39; and Gisler-RedhilVNorth Trunk Improvements, Contract No. 7-41, for an additional amount of $58,320, increasing the total amount not to exceed $870,278. PDC Non-Consent Calendar j. Consideration of items deleted from PDC Committee Consent Calendar, if any 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 October B, 2003 to be filed. b. Receive and file Treasurer's Report for the month of September 2003. C. Approve SAFETY-POL-114 Hazardous Waste Management Program, as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program. d. Adopt Resolution No. OCSD 03-24, Amending Resolution No. OCSD 98-33, Amending Human Resources Policies and Procedures Manual. e. Receive and file Communications Services Strategic Plan FY 2003-04. I. Approve an Agreement with the Santa Ana Watershed Project Authority (SAWPA) to establish the purchase price for, and the purchase 04.2.0 mgd Wastewater Treatment and Disposal Capacity Right for Desalter Brine for a total amount of $5,252,015.26, in a form approved by General Counsel. FAHR Non-Consent Calendar g. Consideration of items deleted from FAHR Consent Calendar, if any. a:Hw.awa•nm,sm.n.o cam++mensocn,aaw un a a,.iv oa awrtv.aoc fleviveG 8QQ98 Page 4 Book Page 24 15. JOINT GROUNDWATER REPLENISHMENT SYSTEM COOPERATIVE COMMITTEE (JCC) JCC Consent Calendar a. Order Joint Groundwater Replenishment System Cooperative Committee Minutes for the meetings held on September 8, 2003 and September 29, 2003 to be filed. b. Approve an agreement between Orange County Water District and Porter Novelli, providing for one year of additional services for the public information and outreach program for the Groundwater Replenishment System, Job No. J-36, for an amount not to exceed $900,000, to be equally cost shared with the Orange County Water District. C. (1) Approve Amendment No. 1 to the Professional Services Agreement with Montgomery Watson Harza, providing for additional construction management services for the Groundwater Replenishment System, Job No. J-36, for an additional amount of$1,423,992, increasing the total amount not to exceed $12,367,030, to be equally shared with the Orange County Water District; and, (2) Approve Amendment No. 2 to the Professional Services Agreement with Montgomery Watson Harza, providing for a cost-of-living adjustment per their contract for the Groundwater Replenishment System, Job No. J-36, for an additional amount of $523,536, increasing the total amount not to exceed $12,890,566, to be equally cost shared with the Orange County Water District. d. Approve Amendment No. 10 to the Professional Services Agreement with Camp Dresser& McKee, Inc., providing for additional design services for the Groundwater Replenishment System, Job No. J-36, for an additional amount of $305,550, increasing the total amount not to exceed $33,587,086, to be equally cost shared with the Orange County Water District. JCC Non-Consent Calendar C. Consideration of items deleted from JCC Consent Calendar, if any. PROJECT/CONTRACT COST SUMMARY N/A a:�vv.m.WpenMv9eenno Carv,+nr`dmocn,mYos uu el aVe b,M ama-v.arc aewxa:arzase Page 5 Book Page 25 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 CEGA FINDINGS Not a project. ATTACHMENTS NA jt GMO N�vW Wl4NA^Y La�XEW6T-0CIVO'f26t1iAg01bb W amNv.O% Page 6 Book Page 26 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 92708-70I8 OCSD 2/13/03 Cte1N4R.. MAYOR Miguel A.Pulido '{ i � � i s 1. � !... .i'.\{ { /.\ MAYOR PRO TEM c Breit E.Franklin COUNCIL MEMBERS CITY MANAGER Claudia C.Alvarez David N.Ream Lisa Bist } CITY ATTORN Alberta D.Christy I..*W. EY Mike Garcia CLERK OF THE COUNCIL lose Solaro Patricia E.Healy September 4,2003 (m • t �`�3 c2cPY -ro 54-10srA,a ,as Mr. Blake Anderson General Manager Orange Co.Sanitation District 10844 Ellis Avenue Fountain Valley,CA 92708 Dear Mr, n�erson. RE: August 2e Meeting Thank you for attending the meeting to discuss the fiscal environment in our cities and the impacts of the Orange County Sanitation District User Fee. I appreciated your input during the meeting and your commitment to this important issue. I have attached a meeting summary,which you may share with your councilmembers. As we agreed,our next meeting will be in January,2004 and will be held in Buena Park. I will send a notice announcing the time and agenda for the meeting as we get closer to the date. Sincerely,- Alberta D. Christy Councilwoman Attachment 20 OVIC CENTER PLAZA•P.O.BOX 1988 SANTA ANA,CALIFORNIA 92702 TELEPHONE(714)647-6900 FAX(714)647-69U Meeting Summary August 20, 2003, 6:00 PM City of Santa Ana - 2nd Floor Conference Room Purpose: To discuss economic issues affecting Orange County cities and to review the impact of the Orange County Sanitation District User Fee increase. Attendees: Alberta Christy,Blake Anderson, Don Bankhead,Jim BieM Norm Eckenrode, Joy Neugebauer,Patsy Marshall, Bob Savage,Jim Ross, Thom Coughran,Dave Ream. Each representative summarized some of the current financial challenges facing local government this year. Several referenced the impacts of State budget cuts,the slow economy, and concerns about business leaving the State and global competition. It was stated that 22,000 businesses had left the State. Also emphasized was the lack of capital funding for infrastructure in general. Some local efforts to raise revenue were unsuccessful due in part to the State budget process and the controversy over the Sanitation District rate increase proposal. Blake Anderson outlined some of the Sanitation District efforts to partner with the local agencies. Seventeen million dollars a year has been budgeted over ten years for cooperative local projects. The program is a 50150 match and some members suggested that in light of the financial stress the cities are under, a lower match requirement might increase participation in the program. Blake also outlined the Sanitation District's willingness to assist the cities with the mandated"Waste Discharge Requirements"and"Fats, Oils and Grease"programs. The Sanitation District,at the request of several of the cities,has agreed to enter into MOUs with interested local agencies to help centralize the development of plans and studies that will be required. In reference to the recent Orange County District rate increase issue,Blake pointed out that with a 10%annual rate increase, all the major new capital construction contemplated over the next ten years would be 100% financed. Discussion among the group centered not on the need for the capital program,but rather on the front loading of the costs. There were also questions about the rate structure's fairness and concerns about potentially overtaxing business. Blake explained that the rate structure is based on fair share usage and is reviewed by the Board's rate advisory committee consisting of about 30 representatives of various stakeholders in the community. At the conclusion of the meeting the group agreed to meet again in January 2004, at which time the Orange County Sanitation District could present some options to the group that would reduce the early frontloading of the Capital Improvement Program costs. ORANGE COUNTY SANITATION DISTRICT POLICY REGARDING APPROVAL AND COMPENSATION FOR DIRECTORS' MEETING ATTENDANCE SECTION 1 —General The District will authorize travel and reimburse ordinary, necessary, and reasonable business expenses incurred in connection with official responsibilities performed on behalf of the District, in accordance with established policies and procedures. Such expenses occur while conducting District business or attending professional association conferences. This policy applies to all Directors authorized to represent the District through travel or business activities. At all times, Directors serve the public and must do so within the ethical and business performance standards expected of a public agency. Prudent judgment and full compliance with District policies is required. Travel and business expenses will only be approved as they are necessary to fin other the accomplishment of District goals and objectives. Directors are expected to use due discretion when carrying out District business. Expenses must be kept to the lowest reasonable cost to the District while still fulfilling the District's business purpose. Non-compliance with this policy or falsification of reports may result in Board action, including sanctions and/or criminal prosecution. SECTION 2—Definitions As used in this policy, the following terms shall have the meanings so indicated: a. Director— shall mean a member of the District Board of Directors. b. District— shall mean Orange County Sanitation District. C. Incidentals— shall mean any minor, miscellaneous expenses incurred during Travel, including, but not limited to, local bus fare, telephone calls, non-meal gratuities, and snacks. d. Meetings— shall mean all regularly convened Board of Directors meetings, standing committee meetings and other meetings called by the Chair of the Board of POLICY REGARDING ALLOWANCE OF EXPENSES Directors. Also included are specific industry conferences and business meetings designated by the Chair. Meetings not sanctioned by the Chair are not considered business of the District. C. Maximum meetings allowed per Month— shall mean: for the Chair, ten for the Vice-chain, eight for all other Directors, six f. Travel— shall mean transportation, lodging, meals, and incidentals associated with attending a seminar, conference, or meeting further than a sixty(60)mile radius of either the traveler's primary residence or regular work site, whichever is closer. g. Travel Liaison— shall mean the person or persons selected within the General Manager's office to handle the travel accommodations for and assist in processing Director expense reimbursement claims. SECTION 3 —Bud eg t Implications Sufficient funds must be included in the current fiscal year's operating or capital budget for all travel and business expenses to be paid or reimbursed under this policy. SECTION 4—Responsibilities Directors shall be familiar with this policy; obtain prior authorization for travel; submit timely"Conference/Seminar Authorization" and"Conference/Seminar or Monthly Expense Report"forms, supporting documentation and accounting for expenses incurred. To avoid unnecessary expense and take advantage of early registration discounts, the Director must apply for attendance at seminars and conferences as early as possible. Travel Liaisons shall be familiar with this policy; advise Directors; make necessary arrangements, reservations, guarantees; issue travel authorization, tickets and itineraries to Directors; notify employees of outstanding travel expense reports; set equivalent costs of common carrier travel and determine travel times chargeable as business when personal vehicles are authorized as a means of travel; coordinate group travel; promote economic, reasonable, necessary and fiugal means; and advise senior staff on travel matters. General Manager shall oversee execution of this policy and ensure that travel and other reimbursable expenses are necessary and reasonable. _2. POLICY REGARDING ALLOWANCE OF EXPENSES SECTION 5—Travel Liaison The General Manager's Travel Liaison will arrange all travel for Directors. The Travel Liaison will arrange all lodging accommodations and seminar/conference registration and use the District's designated travel agency for booking all air and ground travel. Any travel or registration not booked through the Travel Liaison may be subject to payment by the Director without reimbursement from the District. SECTION 6—Designated Travel Agency The District will designate a single travel agency through which all air travel and car rentals shall be arranged. SECTION 7—Seminars/Conferences/Meetines Attendance at seminars, conferences, and meetings(other than Board and Standing Committee meetings) must be approved in advance by the Char of the Board. There must be a business reason for attendance at conferences and other outside meetings. Such reasons would include presentation of technical findings, attendance at meetings of committees or technical sessions dealing with issues related to District business, or participation as an officer of the association. Seminars must be selected based on value to the District. The number of District conference attendees should be minimized. Attendance benefits would include improved efficiency and effectiveness, as well as meeting new regulatory standards. In addition to the costs estimated on the Conference/Seminar Authorization, the cost of an Employee's work time for travel to, from and during the seminar must be considered. Free,local seminars must also be authorized in advance. Preference will be given to seminars that are provided within the Southern California region. Attendance at seminars, conferences, or meetings in"destination resort" areas or areas outside the continental Unites States is discouraged. -3 - POLICY REGARDING ALLOWANCE OF EXPENSES SECTION 8—Ground Transportation Mileage reimbursement for use of personally-owned vehicles shall be the rate set by the Board, which is equivalent to the current Internal Revenue Service(IRS)rate for travel deductions. In no case, shall the amount paid for mileage reimbursement for use of a personally-owned vehicle used for travel in lieu of air travel exceed the cost of coach class or equivalent airfare. Reasonable vehicle parking and storage costs will be allowed when District, rental, or personally owned vehicles are used for District business. Highway and bridge tolls are allowable expenses when incurred while conducting District business. When traveling by air, Directors should only use rental cars for ground transportation as a last resort or when it is less expensive than other forms of transportation such as trains, buses, taxis or shuttles. Discretion must be used in selecting rental car size. They should be the smallest size that provides adequate safety and comfort for the generally short time they are in use. Directors will not be reimbursed for any surplus insurance purchased for rental cars, because the Director and the District are already sufficiently insured through existing District policies. Only Directors are allowed to operate rental cars. Other forms of ground transportation should be selected such that transportation costs are reasonable. SECTION 9—Air Transportation All air transportation must be arranged by the Travel Liaison through the designated travel agency. The General Manager is given the authority to determine exceptions on a case-by case basis. All air travel must be at coach class level. First class travel will only be allowed on an exception basis and must be approved by the General Manager in advance. Air transportation should be arranged as early as possible to take advantage of reduced fares for early reservations. Consideration should be given to alternative departure/arrival airports, dates, flight times, and stopovers to minimize air fares. However, the total cost of the alternatives(eg, ground transportation, employee work times, lodging) should also be considered in selecting an alternative. Internet booking services can be consulted to help in finding the optimum alternative, however flights must still be reserved by the Travel Liaison. -4- POLICY REGARDING ALLOWANCE OF EXPENSES SECTION 10—Lod&g All lodging must be arranged by the Travel Liaison. When travel is to a conference, the conference-sponsored hotel should be used to minimize cost. Some conferences require early booking to take advantage of reduced rates. If lodging cannot be arranged at the conference-sponsored hotel, then the next most reasonably priced lodging must be used. Other lodging accommodations may also be arranged if the cost is less than the conference-sponsored hotel. No lodging within 60 miles of work or the Director's residence, whichever is less, is allowed. SECTION I 1 —Meals and Incidentals Meal expenses are allowed while Directors are traveling. Expenses for other meals, not associated with travel, but with appropriate business purpose, are also allowed. Directors will be reimbursed for actual meal expenses, including all taxes and gratuities, up to the amounts indicated below. Expenses will be reimbursed on a meal-by-meal basis, not a daily basis. If meal expenses exceed the amounts allowed, the Director will be reimbursed the allowance amount, with the remainder being paid by the Director. If meal expenses are less than the allowable amount, the actual expense amount will be reimbursed. All meal expenses must be documented in detail in accordance with the Policy. Directors may be reimbursed for meals under either of two methods: Method!— "No Receipt Medved" When no receipts are provided, the maximum per meal/expense reimbursements are as follows: Breakfast $10.00 Lunch $20.00 Dinner $30.00 Incidentals $10.00 During Travel, these amounts may be aggregated to allow a total per day maximum of$70.00. For instance, multiple meal expenses may be combined to allow for a more expensive single meal. However, in no event will a Director be reimbursed more than $70.00 per Travel day under the"No Receipt Method." -5- POLICY REGARDING ALLOWANCE OF EXPENSES Method 2 — "Recetot Method" When receipts are provided, the maximum per meal/expense reimbursements are as follows: Breakfast $15.00 Lunch $25,00 Dinner $35,00 Incidentals $15.00 Under this method, multiple meal expenses cannot be combined to pay for a more expensive single meal. It is applied strictly as a per meal expense. In no event, will a Director be reimbursed more than $90.00 per travel day under the"Receipt Method." In the case of a missing receipt, the Director will be reimbursed the maximum per meal amount allowed under Method 1 for that meal. Receipts must be an original, detailed receipt for actual costs. Credit card receipts and restaurant bill stubs do not provide sufficient detail and are not acceptable for reimbursement under this method. If detailed receipts are not available, the Director can still be reimbursed at lower amounts under the"No Receipt Method." No adjustments are made to the allowance amounts based on geographical location or other criteria unless approved in advance by the General Manager. Non-travel business meals will only be reimbursed if taken in conjunction with a District business meeting. Meals for Director guests will be reimbursed only if they have had, currently have, or potentially will have a legitimate business relationship with the District. Conflict of interest policies and laws must be considered when providing meals to or receiving meals from non-Directors. If meals are included in the cost of a conference or seminar, Directors will not be reimbursed for meals eaten outside the conference or seminar in lieu of the meal provided without Chair or General Manager approval. The District will not reimburse for alcoholic beverages consumed by Directors or their guests, regardless of when consumed. Any exceptions to the above meal allowance requirements must be approved prior to reimbursement by the Chair or General Manager. -6- POLICY REGARDING ALLOWANCE OF EXPENSES SECTION 12—Extended Travel and Travel with Family Members On occasion, Directors may elect to extend their stay at travel destinations or travel with family members. All expenses, including but not limited to airfare, extra meals, extended car rental or lodging, related to such extended or family travel must be paid by the Director. -7-