HomeMy WebLinkAbout2003-12 DRAFT
MINUTES OF STEERING COMMITTEE MEETING
Wednesday, December 17, 2003
A meeting of the Steering Committee of the Orange County Sanitation District was
held on Wednesday, December 17, 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
Steve Anderson, Chair pro tem, Vice Chair Mike Moore
Jim Ferryman, Chairman, OMTS Committee Chris Townsend
Brian Brady, Chairman, FAHR Committee
Norm Eckenrode, Past Board Chair STAFF PRESENT:
Blake Anderson, General Manager
Directors Absent: Bob Ghirelli, Director of Technical Services
Shirley McCracken, Chair Carol Beekman, Communications Services
Brian Donahue, Chairman, PDC Committee Manager
Jim Silva, County Supervisor Jim Colston, Legislative and Regulatory Affairs
Liaison
Jean Tappan, Committee Secretary
(2) APPOINTMENT OF CHAIR PRO TEM IN FILED
THE OFFICE OF THE SECRETARY
ORANGE COUNTS S/�'TenON DISTRICT
Vice Chair Steve Anderson was appointed Chair pro tem. FEB 2 5 2004
(3) PUBLIC COMMENTS
There were no comments by any member of the public. cV
(4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING
The minutes of the November 19, 2003 Steering Committee meeting were approved as drafted.
(5) REPORT OF THE COMMITTEE CHAIR
Committee Chair announced that registrations for CASA and the Orange County Leadership
Symposium are due to Jean Tappan this week.
Director Brian Brady asked for staff assistance in reviewing the task force's draft and recommending
options for changes to the Approval and Compensation for Directors' Meeting Attendance policy.
Minutes of the Steering Committee
Page 2
December 17, 2003
(6) REPORT OF THE GENERAL MANAGER
A. Legislative Update
General Manager Blake Anderson asked Chris Townsend to update the directors on the
California Senate Committee on Local Government hearing he attended in November that
concerned special districts. He stated that the Sanitation District is a good agency but he
wanted to provide information on the goings-on in Sacramento. Among things that were
discussed were 1)what is a meeting?2) putting caps on the number of meetings and 3) limits
on stipend amounts. Mr.Townsend stated that he will continue to monitor this issue and will
keep the agency informed. He suggested that the District continue to use CASA as an
avenue and provide proactive participation through them.
A discussion followed on backfilling the monies lost as a result of the reduction in vehicle
license fees.
Mr. Anderson reported that$1 million has been earmarked in the House VA-HUD-
Independent Agencies budget for our secondary treatment expansion. He thanked
Congressman Cox and Directors Ridgeway and Silva for their efforts on our behalf. Last
week, Mr.Anderson met with Senator Diane Feinstein to go over several issues and
discussed the ear marked funds. He told her that we would be requesting $50 million over
the next decade representing less than a 20%federal share. Senator Feinstein said that she
would provide support in the future.
Carol Beekman and Mr. Anderson attended the a CASA legislative committee meeting in
Sacramento December 5 and they submitted three separate white papers on state-wide
standards for water reclamation, state-wide biosolids and urban runoff funding. Meetings will
be scheduled with the Jarvis group on including urban runoff in the Proposition 218
exemptions.
B. Orange County Leadership Symposium, January 9-11, Lake Arrowhead
Mr.Anderson urged the directors to attend this event,which is intended to provide the
electeds tools to improve dialogue on city and county issues.
C. Draft NWRI Report regarding Asset Management
Mr. Anderson stated that the NW RI-sponsored asset management review panel has
submitted its findings. Staff is suggesting that two members of the panel present the findings
to the Board in February. A summary report will be presented to the Steering Committee in
January. Staff also suggests that the report be presented to all of the working committees
because of the wide financial, planning, engineering and operational implications that asset
management implies.
Mr.Anderson suggested that the OMTS Committee be designated as the committee of
jurisdiction. He then summarized the findings for the directors.
D. Universal Power Industries Corporation Proposal
Mr.Anderson and General Counsel Woodruff discussed an unsolicited proposal on an energy
alternative. While many of the terms sound very attractive, there are still questions that need
to be answered before making any commitment. It was generally agreed that the legal,
financial and technical issues were too difficult to overcome and that the proposal should not
Minutes of the Steering Committee
Page 3
December 17, 2003
be explored further.
(7) REPORT OF GENERAL COUNSEL
General Counsel Thomas Woodruff announced that the Court of Appeals has affirmed the trial
court's decision regarding Crow Winthrop. The Appellate Court issued a ruling that the District's
Capital Facilities Capacity Charge Ordinance is not subject to Proposition 218 and therefore the fees
imposed on Crow Winthrop were not invalidly charged. Appellate costs are to be paid by Crow
Winthrop.
Mr. Woodruff announced that there was a need to add an additional closed session item to the
agenda which surfaced subsequent to the posting of the agenda pursuant to Government Code
Section 54954.2.
MOVED, SECONDED AND DULY CARRIED to add an item of existing litigation to the closed
session agenda.
(8) DISCUSSION ITEMS (Items A-B)
A. Update on the Renewal of the NPDES Ocean Discharge Permit
Jim Colston updated the committee on where we are with the permit renewal. The
operational plan update has been presented to the Regional Board, as well as a
description of the disinfection facilities and how that system will continue to operate.
Meetings continue on other aspects of the permit. Mr. Colston then outlined the
scheduled. It is expected that a draft permit will be received in January or early
February. There will then be 45 days for public comments. A workshop is anticipated
In April or May and it will be held locally. Adoption should take place in July and after
the permit is adopted discussions on the consent decree process begins. No
significant changes are anticipated in the ocean monitoring program.
The Communications Services Division is assisting with the public education process.
A discussion followed on the definition of 'blending processes' and 30/30 secondary
treatment standards.
B. The agenda items scheduled to be presented to the Board at tonight's meeting
were reviewed. There were no questions or clarifications required.
(9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY
There was no other business discussed.
(10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A
SUBSEQUENT MEETING
There were none.
Minutes of the Steering Committee
Page 4
December 17, 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,January 28, 2004 at 5 p.m.
The next Board Meeting is scheduled for Wednesday,January 28, 2004 at 7 p.m.
(13) CLOSED SESSION
The Committee convened at 6:16 p.m. in Closed Session, pursuant to Sections 54956.9(a)
and(b),to discuss two items. Item 12 A.2. was deleted from the agenda. Item 13.A.3. was
added per the motion adopted under Item 7 above. The matter is existing litigation,WOODSIDE
V. ORANGE COUNTY SANITATION DISTRICT, at al. There were no reportable actions taken
by the Committee.
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.
Al 6:57 p.m., the Committee reconvened in regular session.
(14) ADJOURNMENT
The Chair declared the meeting adjourned at 6:57 p.m.
ubmitted by:
Tappan
Bring Committee Secretary
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DRAFT
MINUTES OF STEERING COMMITTEE MEETING
Wednesday, December 17, 2003
A meeting of the Steering Committee of the Orange County Sanitation District was
held on Wednesday, December 17, 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
Steve Anderson, Chair pro tem, Vice Chair Mike Moore
Jim Ferryman, Chairman, OMTS Committee Chris Townsend
Brian Brady, Chairman, FAHR Committee
Norm Eckenrode, Past Board Chair STAFF PRESENT:
Blake Anderson, General Manager
Directors Absent: Bob Ghirelli, Director of Technical Services
Shirley McCracken, Chair Carol Beekman, Communications Services
Brian Donahue, Chairman, PDC Committee Manager
Jim Silva, County Supervisor Jim Colston, Legislative and Regulatory Affairs
Liaison
Jean Tappan, Committee Secretary
(2) APPOINTMENT OF CHAIR PRO TEM FILED
IN THE OFFICE OF THE SECRETARY
Vice Chair Steve Anderson was appointed Chair pro tam. ORANGE ram,.,._---'_'-'M DISTRICT
JAN 2 $ 2004
(3) PUBLIC COMMENTS
There were no comments by any member of the public. hY_. —
(4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING
The minutes of the November 19, 2003 Steering Committee meeting were approved as dratted.
(5) REPORT OF THE COMMITTEE CHAIR
Committee Chair announced that registrations for CASA and the Orange County Leadership
Symposium are due to Jean Tappan this week.
Director Brian Brady asked for staff assistance in reviewing the task force's draft and recommending
options for changes to the Approval and Compensation for Directors' Meeting Attendance policy.
r
Minutes of the Steering Committee
Page 2
December 17, 2003
(6) REPORT OF THE GENERAL MANAGER
A. Legislative Update
General Manager Blake Anderson asked Chris Townsend to update the directors on the
California Senate Committee on Local Government hearing he attended in November that
concerned special districts. He stated that the Sanitation District is a good agency but he
wanted to provide information on the goings-on in Sacramento. Among things that were
discussed were 1)what is a meeting? 2) putting caps on the number of meetings and 3) limits
on stipend amounts. Mr.Townsend stated that he will continue to monitor this issue and will
keep the agency informed. He suggested that the District continue to use CASA as an
avenue and provide proactive participation through them.
A discussion followed on backfilling the monies lost as a result of the reduction in vehicle
license fees.
Mr. Anderson reported that$1 million has been earmarked in the House VA-HUD-
Independent Agencies budget for our secondary treatment expansion. He thanked
Congressman Cox and Directors Ridgeway and Silva for their efforts on our behalf. Last
week, Mr. Anderson met with Senator Diane Feinstein to go over several issues and
discussed the ear marked funds. He told her that we would be requesting$50 million over
the next decade representing less than a 20%federal share. Senator Feinstein said that she
would provide support in the future.
Carol Beekman and Mr.Anderson attended the a CASA legislative committee meeting in
Sacramento December 5 and they submitted three separate white papers on state-wide
standards for water reclamation, state-wide biosolids and urban runoff funding. Meetings will
be scheduled with the Jarvis group on including urban runoff in the Proposition 218
exemptions.
B. Orange County Leadership Symposium, January 9-11. Lake Arrowhead
Mr.Anderson urged the directors to attend this event, which is intended to provide the
electeds tools to improve dialogue on city and county issues.
C. Draft NWRI Report regarding Asset Management
Mr.Anderson stated that the NW RI-sponsored asset management review panel has
submitted its findings. Staff is suggesting that two members of the panel present the findings
to the Board in February. A summary report will be presented to the Steering Committee in
January. Staff also suggests that the report be presented to all of the working committees
because of the wide financial, planning, engineering and operational implications that asset
management implies.
Mr. Anderson suggested that the OMTS Committee be designated as the committee of
jurisdiction. He then summarized the findings for the directors.
D. Universal Power Industries Comoration Proposal
Mr. Anderson and General Counsel Woodruff discussed an unsolicited proposal on an energy
alternative. While many of the terms sound very attractive, there are still questions that need
to be answered before making any commitment. It was generally agreed that the legal,
financial and technical issues were too difficult to overcome and that the proposal should not
`a Minutes of the Steering Committee
Page 3
December 17, 2003
be explored further.
(7) REPORT OF GENERAL COUNSEL
General Counsel Thomas Woodruff announced that the Court of Appeals has affirmed the trial
court's decision regarding Crow Winthrop. The Appellate Court issued a ruling that the District's
Capital Facilities Capacity Charge Ordinance is not subject to Proposition 218 and therefore the fees
imposed on Crow Winthrop were not invalidly charged. Appellate costs are to be paid by Crow
Winthrop.
Mr.Woodruff announced that there was a need to add an additional closed session item to the
agenda which surfaced subsequent to the posting of the agenda pursuant to Government Code
Section 54954.2.
MOVED,SECONDED AND DULY CARRIED to add an item of existing litigation to the closed
session agenda.
(8) DISCUSSION ITEMS (Items A-B)
A. Update on the Renewal of the NPDES Ocean Discharge Permit
Jim Colston updated the committee on where we are with the permit renewal. The
operational plan update has been presented to the Regional Board, as well as a
description of the disinfection facilities and how that system will continue to operate.
Meetings continue on other aspects of the permit. Mr. Colston then outlined the
scheduled. It is expected that a draft permit will be received in January or early
February. There will then be 45 days for public comments. A workshop is anticipated
in April or May and it will be held locally. Adoption should take place in July and after
the permit is adopted discussions on the consent decree process begins. No
significant changes are anticipated in the ocean monitoring program.
The Communications Services Division is assisting with the public education process.
A discussion followed on the definition of'blending processes' and 30/30 secondary
treatment standards.
B. The agenda items scheduled to be presented to the Board at tonight's meeting
were reviewed. There were no questions or clarifications required.
(9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY
There was no other business discussed.
(10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A
SUBSEQUENT MEETING
There were none.
Minutes of the Steering Committee °
Page 4
December 17, 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, January 28, 2004 at 5 p.m.
The next Board Meeting is scheduled for Wednesday, January 28, 2004 at 7 p.m.
(13) CLOSED SESSION
The Committee convened at 6:16 p.m. in Closed Session, pursuant to Sections 54956.9(a)
and(b),to discuss two items. Item 12 A.2. was deleted from the agenda. Item 13.A.3.was
added per the motion adopted under Item 7 above. The matter is existing litigation,WOODSIDE
V. ORANGE COUNTY SANITATION DISTRICT, at al. There were no reportable actions taken
by the Committee.
Minutes of the Closed Session are on file with the Board Secretary. Confidential Minutes of the
Closed Session held by the Steering Committee have been prepared in accordance with
Government Code Section 54957.2,and are maintained by the Board Secretary in the Official
Book of Confidential Minutes of Board and Committee Closed Meetings. A report of the
recommended actions will be publicly reported at the time the approved actions become final.
At 6:57 p.m.,the Committee reconvened in regular session.
(14) ADJOURNMENT
The Chair declared the meeting adjourned at 6:57 p.m.
ubmitted by:
Tappan
Bring Committee Secretary
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STEERING COMMITTEE AND BOARD MEETING DATES
FOR THE NEXT TWELVE MONTHS
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
Wednesday, November 17, 2004'
Wednesday, December 15, 2004'
'Tentatively rescheduled from regular fourth Wednesday.
STEERING COMMITTEE
(1) Roll Call:
Meeting Date: December 17, 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
Chris Townsend
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 a 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, DECEMBER 17, 2003 AT 5 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 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 compliancewith 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 I
-2- December 17, 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 November 19, 2003 Steering Committee meeting.
(5) REPORT OF COMMITTEE CHAIR PRO TEM
A. CASA Conference Reservations
B. Report of Approval and Compensation for Directors' Meeting Attendance Task
Committee (Anderson/Brady)
(6) REPORT OF GENERAL MANAGER
A. Legislative Update
B. Orange County Leadership Symposium
C. Draft NW RI Report regarding Asset Management
(7) REPORT OF GENERAL COUNSEL
A. Results of Crow Winthrop Appeal
(8) DISCUSSION ITEMS (Items A-B)
A. Update on the Renewal of the NPDES Ocean Discharge Permit (Ghirelli)
B. Review and consideration of Agenda Items for Board of Directors Meeting of
December 17, 2003
(9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY
Book page 2
-3- December 17, 2003 Agenda
(10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A
SUBSEQUENT MEETING
(11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA
FOR ACTION AND STAFF REPORT
(12) FUTURE MEETING DATES
The next Steering Committee Meeting is scheduled for 5 p.m., Wednesday, January 28, 2003.
The next Board Meeting is scheduled for 7 p.m.,Wednesday, January 28, 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, if necessary
1. Convene in closed session to confer with General Counsel- Potential
Litigation. Significant exposure to litigation pursuant to Government Code
Section 54956.9(b).
2. Evaluation of General Counsel Services pursuant to Government Code
Section 54957.
B. Reconvene in regular session.
C. Consideration of action, if any, on matters considered in closed session.
(14) ADJOURNMENT
jt
WWPDTAW MDA�ING CDA1MRl eMDEQUIM AGENDADDC
Book page 3
-4- December 17, 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 Hall)
Committee Staff Contact: Blake P.Anderson (714)593-7110
General Counsel: Thomas L.Woodruff (714)564-2605
Secretary: Jean Tappan (714)593-7101
(714)962-0356 (Fax)
E-mail: jtappan®ocsd.com
Book page 4
DRAFT
MINUTES OF STEERING COMMITTEE MEETING
Wednesday, November 19, 2003
A meeting of the Steering Committee of the Orange County Sanitation District was
held on Wednesday, November 19, 2003 at 5 p.m., in the Districts Administrative
Office.
(1) The roll was called and a quorum declared present, as follows:
STEERING COMMITTEE MEMBERS: OTHERS PRESENT:
Directors Present: Thomas L. Woodruff, General Counsel
Shirley McCracken, Chair Don Hughes
Steve Anderson, Vice Chair Ryal Wheeler
Jim Ferryman, Chairman, OMTS Committee Gerhardt Van Drie
Brian Donahue, Chairman, PDC Committee
Jim Silva, County Supervisor STAFF PRESENT:
Norm Eckenrode, Past Board Chair Blake Anderson, General Manager
Bob Ghirelli, Director of Technical Services
Directors Absent: Bob Cotten, Director of Operations and
Brian Brady, Chairman, FAHR Committee Maintenance
Carol Beekman, Communications Services
Manager
Mike Moore, ECM Manager
Jim Colston, Legal and Regulatory Affairs
Liaison
Jean Tappan, Committee Secretary
(2) APPOINTMENT OF CHAIR PRO TEM
No appointment was necessary.
(3) PUBLIC COMMENTS
Mr. Gerhardt Van Dde asked for a copy of the correspondence pertaining to his proposal.
(4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING
The minutes of the October 22, 2003 Steering Committee meeting were approved as drafted.
Book page 5
Minutes of the Steering Committee
Page 2
November 19, 2003
(5) REPORT OF THE COMMITTEE CHAIR
Committee Chair Shirley McCracken announced that the CASA Conference will be held January 21-
24 in Palm Springs.
Chair McCracken also announced that she is changing the governance system for the Cooperative
Projects Guidance Committee. It will be chaired by the Board's Vice Chair, Steve Anderson, and
include the chairs of the three standing committees and the Board of Supervisors representative.
They will be the voting members of the committee. This is a significant change from the last five
years when city managers and sanitary district managers were also voting members. However, the
involvement and input from the cities and the districts we serve remains important and staff will invite
all of them to future cooperative projects committee meetings. The Guidance Committee will
continue to report to the Board through the PDC Committee, as it has been doing.
Chair McCracken reported that the Directors Compensation Task Committee continues to work on
refining the policies and procedures. A report will be forthcoming.
The report of the Legislative Advocacy Ad Hoc Committee will be made under Agenda Item 8.6.
(6) REPORT OF THE GENERAL MANAGER
A. Staff Response to Unsolicited Proposals
General Manager Blake Anderson reported that staff evaluated the unsolicited
proposal from Mr. Gerhardt Van Drie and has recommended that no action be taken
at this time. He commented on staff's ongoing practice of providing information that
members of the public request. Mr. Anderson also reported that staff has spent a
considerable amount of time meeting with the proposer, conducting tours, reviewing
data and answering questions but due to construction and operating constraints, as
well as a lack of necessary data as out lined in Mr. Ooten's memo, no action is
recommended.
B. Update on SAWPA Agreement Negotiations
Meetings continue between the Sanitation District and SAW PA. The amount of
outstanding invoices and interest on overdue amounts has been established. The
terms for SAW PA's option to purchase the SARI line have been established including
the pricing structure for how SAW PA eventually sells back treatment capacity and
sewer capacity to the District if their proposed brine line to the ocean is constructed.
The problematic issue at this time is what happens in 2008 if SAW PA hasn't bought
the 4-mile stretch of the SARI line or Orange County Flood Control and the Corps of
Engineers haven't issued a notice to proceed with the line improvements. Both sides
continue to try to reach an agreement. It is anticipated that the agreement will move
through the FAHR Committee to the Board in December.
Another concern that has surfaced is the progress on the CA Fish and Wildlife
Services studies as a result of a federal court case brought by an environmental group
to protect the critical habitat of the Santa Ana Sucker. The results must be addressed
in the EIS/EIR. If the federal agency studies are not forthcoming, the District could
Book page 6
Minutes of the Steering Committee
Page 3
November 19, 2003
ask for a federal hearing on the problems. The County of Orange, Orange County
Water District and SAW PA also are stakeholders in the process as they have projects
that impact the river watershed.
It was suggested that the lobbyists for the impacted agencies work together on this
issue in an effort to keep the project moving.
(7) REPORT OF GENERAL COUNSEL
General Counsel Tom Woodruff did not make a report.
(8) DISCUSSION ITEMS (Items A-E)
A. Joint Water Campus and Related Sicnace Concepts
The District has conceptually agreed to allowing the chemical trucks for GW RS to
come through our Ellis Avenue gate to reduce traffic on Ellis and Ward,to reduce the
noise impacts, improve safety, maintain good relations with our neighbors and the City
of Fountain Valley,and to guarantee unrestrained night-time deliveries to GW RS. The
District has always attempted to take extra measures to protect the interests of our
neighbors around our treatment plants. The signage at the front gate is under study
as well as the appropriate level of security and access to areas of the treatment plant.
By providing an entrance road to access the Sanitation District, the Water District,
NWRI and MW DOC, a water campus could be created that will address both traffic
and security issues. A second entrance on Ward is also contemplated that would
provide the same level of access from that direction as well. Once GW RS is online,
an increase in visitors is expected and many of them will want to tour the Sanitation
District as well. Easy access for visitors and delivery trucks through one entrance
provides a better opportunity for security checks. Director John Collins has asked for
the general counsels of all agencies to make certain there isn't a liability Issue.
General Counsel Woodruff reported that he doesn't see any increased liability with the
proposed change but an evaluation will be made.
The Committee agreed to send the item through our working committees and report
back to the JCC.
B. Update on the Renewal of the NPDES Ocean Dischame Permit
Jim Colston updated the Committee on ongoing negotiations for the NPDES permit.
He described the contents of the operational plan and proposed changes to it and
explained the proposed interim limits that will be in effect until secondary treatment is
achieved. Bob Ooten said that Operations has been able to do better than the
proposed limits through optimizing the system. Two-thirds of our ocean discharge
now receives secondary treatment. Disinfection will be included for the duration of the
2004-09 Permit. Engineering is looking at final alternatives for permanent disinfection
which will be included in the next permit.
Mr. Colston explained that once the permit is issued, the process requires that the
District be sued and a consent decree will then be signed. This will allow the District
Book page 7
Minutes of the Steering Committee
Page 4
November 19, 2003
the time it needs to convert to full secondary treatment.
Staff will continue to update the Committee on future activities and progress.
C. Leaislative Consultant Contracts
Bob Ghirelli updated the committee on the federal, state and local legislative advocacy
activities in the past month. The EPA funding bill is one of four spending bills still
pending before Congress and our lobbyists are continuing their work to secure funding
for OCSD in that process. In February,Board members will be visiting key members
of Congress to bolster support for our$3 million request and begin to lay the
groundwork for an authorization in next year's session. State lobbyists are following
the changes in Sacramento and looking for opportunities to gain support for the
District's issues and funding requests. Staff is going to be working more closely with
the Water District,the Orange County Business Council and the County of Orange on
legislative initiatives of mutual interest.
Bob Ghirelli reported that staff was directed to prepare contracts for the consultants at
last month's Steering Committee.
MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board that it:
1) Establish a budget of$320,000 for state and federal legislative advocacy;2)
Authorize the General Manager to enter into Consultant Services Agreements with
ENS Resources, Inc., for a contract amount not to exceed$180,000; Mayer, Brown,
Rowe & Maw, LLP,for a contract amount not to exceed $60,000; and Townsend
Public Affairs, Inc., for a contract amount not to exceed $60,000,for a one-year
period, effective January 1,2004 through December 31, 2004, which will provide for
professional advocacy services in a form approved by General Counsel;and 3) Each
contract will be renewable for up to three (3)one-year periods at the discretion of the
General Manager.
D. The Agenda Items scheduled to be reviewed by the Board's working committees in
December were reviewed.
E. The agenda items scheduled to be presented to the Board at tonight's meeting were
reviewed.
(9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY
There was no other business discussed.
(10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A
SUBSEQUENT MEETING
There were none.
Book page 8
Minutes of the Steering Committee
Page 5
November 19, 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, December 17, 2003 at 5 p.m.
The next Board Meeting is scheduled for Wednesday, December 17, 2003 at 7 p.m.
(13) CLOSED SESSION
The Committee convened at 6:12 p.m. in Closed Session, pursuant to Section 54957,to
evaluate General Counsel Services. 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:
Q
J Tappan F IF
S ring Committee Secretary
G 4 W.W NpmOelSNarvg CommMaeW m"I I IPo]W Man'uea.hc
Book page 9
STEERING COMMITTEE Meeting Date To 9d.of Dlr.
12-17-03
AGENDA REPORT i
Itr rber Item Number
Orange County Sanitation District
/7'
FROM: Robert Ghirelli, Director of Technical Services
Originator: James Colston, Legal & Regulatory Affairs Liaison
SUBJECT: Update on the Renewal of the NPDES Ocean Discharge Permit
GENERAL MANAGER'S RECOMMENDATION
Information Item
SUMMARY
In November 2003, staff provided an update to the Steering Committee on the status
and process of renewal for the National Pollutant Discharge Elimination System
(NPDES) ocean discharge permit. As a follow-up to that meeting, staff will provide the
Steering Committee with information on issues of expected interest during the permit
renewal process. These issues include:
• Interim Effluent Limits
• Receiving Water/Ocean Limits
• Ocean Monitoring Program
• Disinfection
PRIOR COMMITTEE/BOARD ACTIONS
None
PROJECT/CONTRACT COST SUMMARY
N/A
BUDGET IMPACT
❑ 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
None
p W.y.NapmWESbeY.nO a1M,myY`N Q1217E3SC Up IINPDES P.11 Penpxy.px
PemeM. o�uwa Page 1
Book page 10
ALTERNATIVES
N/A
CEQA FINDINGS
N/A
ATTACHMENTS
None
G:1xp.ea�51ee+np Ccem UWWOEQ$217a=UMa NPOES Perm flwxal.Ox
oso+m� Page 2
Book page I 1
Vj NGC0MM111 FE
AQNDA REPORT
Orange nty6Zct
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 December 17, 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 December 17,
2003, meeting:
9. Consideration of motion to approve all agenda items appearing on the Consent
Calendar not specifically removed from same, as follows:
a. (1) Receive and file petitions from Eric Holtz requesting annexation of 1.00
acres to Orange County Sanitation District (OCSD) on Randall Street, in
an unincorporated area of Orange County; and,
(2) Adopt Resolution No. OCSD 03-29, authorizing initiation of
proceedings to annex said territory to OCSD (Proposed Annexation No.
OCSD-36 — Holtz Annexation).
b. (1) Receive and file petitions from Tim Worden requesting annexation of
0.36 acres to Orange County Sanitation District (OCSD) in the vicinity of
Vista Del Lago and Lemon Heights Drive in an unincorporated area of
Orange County; and,
(2) Adopt Resolution No. OCSD 03-30, authorizing initiation of
proceedings to annex said territory to OCSD (Proposed Annexation No.
OCSD-37—Worden Annexation).
C. Authorize the General Manager to enter into a reimbursement agreement
with Charles Rinehart, Jack Selman, Tim Metzger, and the Jensen Family
Trust for construction of a new 8" VCP sewer in Foothill Boulevard near La
Cuesta Drive in Lemon Heights, in a form approved by General Counsel.
B wk pace 12
END OF CONSENT CALENDAR
10. Consideration of items deleted from Consent Calendar, if any.
COMMITTEE REPORTS AND RECOMMENDED ACTIONS
11. STEERING COMMITTEE
Consent Calendar
a. Order draft Steering Committee Minutes for the meeting held on
November 19,2003 to be filed.
Non-Consent Calendar
b. Review and consideration of agenda items considered by the Steering
Committee re the December 17, 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 December 3, 2003 to be filed.
b. Ratify Change Order No. 1 to Purchase Order 38169-OS issued to M. J.
Schiff& Associates, Inc. for Digester Gas Pipeline Corrosion Protection
System Inspection and Repair, Specification No. S-2003-125BD,
authorizing an addition of $50,726.83, increasing the total contract amount
to $435,036.83.
C. Approve Change Order No. 1 to Purchase Order No. 101470-OB issued to
Polydyne Inc., for the Purchase of Cationic Polymer, Specification
No. C-2003-143, for an additional amount of$229,000, increasing the
estimated amount to $1,059,000, for the contract period ending April 30,
2004.
d. (1) Authorize development of a Fats, Oil and Grease (FOG) public
education and outreach program in accordance with the provisions of
California Regional Water Quality Control Board Santa Ana Region Order
No. R8-2002-0014, General Discharge Requirements for Sewage
Collection Agencies;
a:w.y.a..znavwwiro cmn+,ueaua�ui>oa um d ao mr oec eozrterax
Page 2
Book page 13
(2) Establish a budget of$150,000 for FOG public education and outreach
program which will be divided equally among participating cities/agencies
and Orange County Sanitation District;
(3) Authorize the General Manager to develop a funding program with the
cities/agencies within the District's jurisdiction for development of the FOG
public education and outreach program; and
(4) Authorize the General Manager to award a Consultant Services
Agreement for Comprehensive Public Education and Outreach Program
for Sewage Collection Agencies, Specification No. CS-2003-172131), for an
amount not to exceed $150,000.
e. Approve a change order to Purchase Order No. 22834-OS, issued to
Michael Turnipseed & Associates, for a time extension through June 30,
2004, to provide biosolids Environmental Management System-related
services, including the performance of biosolids land application site
inspections in Kings and Kern counties, for an additional amount of
$15,000, for a total amount not to exceed $115,000.
I. Authorize the General Manager to utilize Riverside County's competitively
bid multi-agency contract and execute an agreement with Softchoice
Corporation for licensing Microsoft Enterprise desktop computer software,
for a three year period effective December 31, 2003 through
December 31, 2006, for a total amount not to exceed $350,000.00.
OMTS Non-Consent Calendar
g. Approve a Professional Services Agreement with Sun Engineering
Services for Indoor/Outdoor Lighting Study, Specification No. CS-2003-
14513D, providing for a plant lighting study for a total amount not to exceed
$110,000.
h. Consideration of items deleted from OMTS Committee Consent Calendar,
if any.
13. PLANNING, DESIGN AND CONSTRUCTION COMMITTEE (PDC)
PDC Consent Calendar
a. Order draft Planning, Design and Construction Committee Minutes for the
meeting held on December 4, 2003 to be filed.
b. Ratify Change Order No. 11 to Primary Clarifiers 16-31 and Related
Facilities, Job No. P1-37, with Margate Construction, authorizing an
addition of$20,680, increasing the total contract amount to $71,218,814.
G:Wp.NNeenEeWleM,q CMNl1%eDbT➢EQl3,]IN Il%d Me for DeC 9M,be1.000
mm�eee:arose Page 3
Book page 14
C. (1) Approve a budget amendment of$189,396 for Short Term Ocean
Outfall Bacteria Reduction, Job No. J-87, for a total budget of$7,767,396;
and,
(2) Ratify Change Order No. 2 to Short Term Ocean Outfall Bacteria
Reduction, Job No. J-87, with J.F. Shea Construction, Inc., authorizing an
addition of $31,556, increasing the total contract amount to $4,231,742.
d. Receive and file Final Long Range Biosolids Management Plan, Job No.
J-40-7, dated November 2003, prepared by CH2M Hill, Inc.
e. Approve Professional Services Agreement with Environmental Science
Associates providing for professional services for Supplemental Full
Secondary Treatment CEQA Documentation, Job No. J-40-10, for an
amount not to exceed $154,992.
I. Approve Professional Services Agreement with Black & Veatch
Corporation for engineering services for design of Newport Trunk Sewer
and Force Mains, Bitter Point Pump Station to Coast Trunk Sewer,
Contract No. 5-58, for an amount not to exceed $1,018,907.
g. Approve Amendment No. 5 to the Professional Services Agreement with
Parsons Engineering Science, Inc. for Area Classification Study
Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, providing for
construction support services for an additional amount of$539,610,
increasing the total amount not to exceed $3,951,021.
h. Approve Amendment No. 6 to the Professional Services Agreement with
Boyle Engineering Corporation for Bushard Trunk Sewer Rehabilitation,
Job No. 1-2-4, providing for additional engineering construction support
services for an additional amount of$264,900, increasing the total amount
not to exceed $2,019,411.
i. Authorize the General Manager to enter into a sole source purchase order
agreement with NRG, Inc. for Central Generation Automation, Job No.
J-79, providing for the upgrade and reinstallation of nine existing and
upgraded turbochargers, for an amount not to exceed $1,570,191
including sales tax and delivery.
PVC Non-Consent Calendar
j. Approve Professional Services Agreement with HDR Engineering for the
design of Activated Sludge Plant Rehabilitation, Job No. P1-82, for a total
amount not to exceed $3,125,026.
k. Consideration of items deleted from PDC Committee Consent Calendar, if
any
o:ny.m.�z.w�.n+z ca,m�n.e�anEc�z+roz um a a,.iw oc m.rt.,.a:
Page 4
Book page 15
�e
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 December 10, 2003 to be filed. (Minutes
to be distributed at 12117103 Board Meeting.)
a. Receive and file Treasurer's Report for the month of November 2003.
C. Receive and file the SWAP Report for the quarter ended September 30,
2003.
d. Adopt Resolution No. OCSD 03-31, Approving Second Amendment to the
District's Executive Money Purchase Pension Plan and Trust.
e. Authorize the General Manager to solicit Requests for Proposal and
subsequently award a Consultant Services Agreement for Corporate
Identify and Public Awareness Project, Specification No. CS-2003-162BD,
in an amount not to exceed $325,000.
FAHR Non-Consent Calendar
h. Consideration of items deleted from FAHR Consent Calendar, if any.
NON-CONSENT CALENDAR
15, Ordinance No. OCSD-21, An Ordinance of the Board of Directors of Orange
County Sanitation District, Adopting Fees, Procedures and Policies Concerning
Annexations of Territory to the District; and Repealing Ordinance No. OCSD-03:
a. Motion to read Ordinance No. OCSD-21 by title only and waive
reading of said entire ordinance. (The waiver of the reading of the
entire ordinance must be adopted by a unanimous vote of Directors
present.)
b. Motion to introduce Ordinance No. OCSD-21, and pass to second
reading and public hearing on January 28, 2004.
16. Ordinance No. OCSD-22, An Ordinance of the Board of Directors of Orange
County Sanitation District, Reaffirming Sanitary Sewer Service Charges;
Adopting Revised Capital Facilities Capacity Charges; Adopting Revised
Miscellaneous Charges and Fees Relating to Industrial Dischargers, Source
Control Permittees and Wastehaulers; and repealing Ordinance No. OCSD-20:
oi'N.4eeY�d�RleeMe Crnmtlx\QT M'21M Yet a PW.ur BaaSv.Ux
Page 5
Book page 16
a. Motion to read Ordinance No. OCSD-22 by title only and waive
reading of said entire ordinance. (The waiver of the reading of the
entire ordinance must be adopted by a unanimous vote of Directors
present.)
b. Motion to introduce Ordinance No. OCSD-22, and pass to second
reading and public hearing on January 28, 2004.
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
CEGA FINDINGS
Not a project.
ATTACHMENTS
NA
jt
O:Mq.NeWpenUaWoe�n2 fCmX11x10=121703 Uo1 of for Ds a ..KG
Page 6
Book page 17
Orange County Sanitation District
(714) 962-2411
www.ocsd.com
mailing address:
P.O. Box 8127
Fountain Valley, California
92728-8127
street address:
10844 Ellis Avenue
Fountain Valley, California
92708-7018
OCSD 6/03
w�
KEEPING THE PUBLIC TRUST
A Presentation by CASA President John Coleman
CR.t AucuST' /Sr 200-1 Q SA" o,C-Go
Well, 2003 has been a wild year in the State of California so far, hasn't it?We've
seen high unemployment, a huge state budget deficit, and the governor's recall qualify
for the ballot. It's enough to realty shake the public's trust in government. And while
the high unemployment might have helped some of us In recent recruitment efforts, the
state budget deficit Is shrinking the resources we need for critical Infrastructure projects
and causing rapid Increases in fees and charges for permits and other state regulatory
services. Of course, the governor's recall has diverted the legislature's attention from
pressing public policy issues that affect wastewater service agencies as well.
All in all, the public mood is Increasingly skeptical about the trustworthiness of
public officials. And it's not just public officials at the state level. Most of you know that
fie Sacramento Bee has been running a series of articles about flscal Improprieties by
special districts. And when these Improper activities by elected officials and employees
of local government agencies were brought to light, one of the questions the Bee raised
was just how widespread these kinds of wrongdoings were among special districts.
The newspaper has, in essence, been reminding California citizens that they
should be actively questioning how their public agencies use their resources and how
responsibly they handle the public's trust. As Board members and staff of public
agencies, I think its important for each of us to ask ourselves these same questions.
Let me take just a few minutes to re-tell the stories that have been running in
the Bee. Last year, after the Northridge and Arcade Water Districts merged and became
the Sacramento Suburban Water District, an employee reviewing the records of the pre-
merger agencies questioned some uses of district-issued credit cards and undocumented
reimbursements in the thousands of dollars. She reported these findings, was fired, and
subsequently went public with her story.
The Bee Investigated and reported allegations that some Sac Suburban officials
had failed to report to the IRS more than $1 million In income that had been doled out
in various ways. There were travel expenses that weren't backed up by receipts—
including a $2,600 round trip airline ticket to Washington D.C. There were $150 rounds
of golf at Spanish Bay in Monterey, and there were tens of thousands of hours of
unauthorized overtime.
As the story unfolded, some of The Bee headlines were scathing. The
newspaper promoted the series heavily, with front-page teasers such as "...Life inside
Callfomia';hidden govemments: water dlsMcfs.' Public records requests were used to
gather Information on the practices of more water districts in Sacramento, Placer, and El
Dorado Counties, of the League of California Cities, and of the Association of California
Water Agencies.
t�
Y
In response to the Sac Suburban revelations, State Senator Deborah Ortiz, who
represents part of the Sacramento region, introduced SB 456. The bill would have
required biannual audits of the agency's books, capped board member compensation at
$1,000 a year, and prohibited travel advances. The Senate Local Government analysis
of the bill, written by long-time senior policy staff analyst Peter Detweiler said, "No one
trusts a government that can't manage the public's money."
Senator Ortiz's said, "We're looking at something pretty significant in capping
compensation,"she said. "It is egregious, and I don't know why there was not any
internal policing by board members." While she eventually dropped that bill, she
announced plans to Introduce legislation in January 2004 to address improprieties in ALL
special districts, significantly broadening her approach.
While some people in our industry have called the Bee'sspecial district editorials
a"hatchet job,"I personally know the writer who did the series, and he is a well-
respected reporter. He saw an abuse of the public trust and he reported it to the public.
fie Bee isn't the only paper uncovering these types of activities by public
officials. Recently, the Los Angeles Times reported the arrest of the West Basin
Municipal Water District president on charges of extorting kickbacks from contractors
doing business with the agency. A second West Basin board member was indicted by a
Grand Jury for allegedly extorting $25,000 from an investment banker who was seeking
to handle the refinancing of$140 million in West Basin debt. A follow-up LA Times
story asserted that there is little oversight of"obscure local agencies"and included more
examples of questionable activities by both water and wastewater officials.
The media coverage continues to declare that not only is outright corruption
abhorrent, but also that billing the public for limousine rides, far four-star hotel rooms,
for golf game fees and for expensive meals is improper.
The media has called both CASA Executive Director Mike Dillon and ACWA
Executive Director Steve Hall for comments. They have responded by saying, "These
types of abuses by trusted officials, whether directors or staff, give us all a black eye."
Corruption, if that's the proper term to use here, is certainly not limited to special
districts. Cities, counties, and even the Legislature occasionally abuse the public's trust.
In fact, the July issue of the Ca/ifomiaJouma/reported that the cities of Southgate,
Compton, Lynnwood, and Carson all have had mayors or city council members indicted
for extortion, misusing public funds, and other charges. As some of you might know,
some of these elected officials have been recalled in recent elections.
I'm sure every one here knows a story about some impropriety that involved a
public official. Of course, the private sector has its problems too. Looking back at the
Enron scandal and other situations where hundreds of thousands of people lost jobs and
retirement benefits, the public sector overall isn't doing a bad job.
But as elected officials we have a special responsibility to"keep the public trust."
We need to make sure our own agencies are dedicated to the highest ideals of honor
2
H
w
and integrity in all public and personal relationships, so that we merit the respect and
confidence of our peers, our staffs and of the public.
I'm not suggesting that I have all the answers. And it is difficult for me as one
public official to give advice to other public officials. But, if we look at the media stories,
the Uttle Hoover Commission report and the various Grand Jury reports alleging abuse
of the public trust, there are recurring themes about proper controls and open public
processes.
�- First, proper controls must be in place and the policies and procedures that
explain those controls should be reviewed and discussed by the Board regularly.
• Every agency must have proper accounting controls. An external auditor
should review them regularly.
• Every agency should have clear descriptions of what types of expenses are
reimbursable. Charging golfing fees is probably Illegal and charging very
expensive restaurant meals to our agencies is questionable behavior.
• Every agency should have clear rules for what constitutes a meetino that
merits per diem charges. One small agency was having six meetings a
month, compared to an average of two meetings per month for other
agencies in the same county. The Grand Jury was especially critical of
meetings this small agency called to"design new letterhead."
—_p Second, every agency should have open and public processes for discussing its
business.
• We should regularly review and carefully follow the Brown Act requirements.
• We should be visible In our communities and communicate regularly with the
public through meetings, community involvement, newsletters, web sites and
other opportunities.
• We should avoid even the appearance of conflicts of interest, protect"whistle
blowers", and safeguard confidential Information.
In short, I believe that every action we take must show that we are
responsible and trustworthy public officials.
As our professional association, CASA can offer some important guidance to help
each of our agencies and us, and CASA can work with our fellow associations to develop
consistent information and recommendations for public officials.
Recently, an ACWA taskforce drafted guidelines to assist their member agencies
in establishing sound policies for general conduct, expense, travel and related policies
and processes. Since the East Bay Municipal Utility District also is a member of ACWA, I
will be working with ACWA President Bette Boatmun, Mike Dillon and Steve Hall to see
how ACWA's work may be helpful to CASA. I also am asking Kamil Azoury and the
Program Committee to put a panel together for the January Conference to give us some
guidance on ethical practices and related subjects such as the Brown Act.
3
t�n
I
While I am confident that the majority of our members have good practices In
place that set appropriate guidelines on travel, expense reimbursements and other
activities, we all can benefit from a refresher, especially in these are sensitive times.
It's hard work to keep the public trust, but its the most important job we do.
Having the public's trust helps ensure our industry is able to get a fair share of limited
resources and funding that is available in these tight fiscal times.
The media coverage of Sacramento Suburban, Carson, and other agencies is a
good wake-up call. Let's not minimize the improprieties or deny that the public trust has
been violated. Let's work harder to show that these are exceptions to the rule. We are
leaders in the wastewater industry for a reason. We earn the privilege every day.
4
Message Page 1 of 3
7
Rgenda Item 6.R.
Anderson, Blake
From: Anderson, Blake
Sent: Monday, December 01,20038:31 AM
To: Don Hughes (donald.hughes@ocgov.com);Woodruff,Tom;Streed, Gary;Anderson, Blake;
Director Brian Brady; Director Brian Donahue; Director Jim Ferryman; Director Jim Silva; Director
Norm Eckenrode; Director Shirley Mc Cracken; Director Steve Anderson
Subject: FW: Senate Local Govemement Hearing 11/24
Steering Committee Subcommittee on Directors Compensation:
Sean Fitzgerald who works for Chris Townsend monitored last weeks Senate Committee on Local Government
Hearing regarding Special Districts. I believe that OCSD would come out looking good as compared to some of
the issues raised by Senate Committee. Nevertheless,as the new directors compensation policy and procedures
are drafted,these issues need to remain in mind.
Blake
---Original Message--
From: Sean Fitzgerald [mallto:SF(tzgemldCaTownsendPA.=]
Sent:Tuesday, November 25, 2003 5:05 PM
To: Anderson, Blake; Ghirelli, Robert; C.o6tDn,Jim; Beekman, Carol; Wassgren, Sonja
Cc: Christopher Townsend
Subject: Senate Local Governement Hearing 11/24
Importance: High
Team OCSD:
What follows is a general recap of the highlights of yesterday's meeting regarding special district governance and
accountability.
Senator Tom Torlakson chaired the meeting,as the Chair of Senate Local Government,with Senators Deborah
Ortiz, Mike Machado and Nell Soto also in attendance.
Peter Detwiler,the chief consultant for the committee, led off the hearing and set the tone by providing a general
overview of special districts(of which there are well over 3,000 in California),their history, LAFCO's role in
governing them,and other background information. His staff report also included several questions that were
recommended to the committee members for possible use in questioning the witnesses.
The first panel was titled'When Things Go Wrong'and included the following:
Don Bunn,former member of the Sacramento Grand Jury-Spoke about the role of the Grand Jury,in that
they will investigate any reasonable and credible complaint. The Sac Suburban situation definitely warranted
investigation. Some recommendations that emerged from their report:
o Mandatory annual audits that include policies and procedures
o Publication of those audits to include a web-based publication
o Mandatory rotation of auditors every 3 years (though he allowed that perhaps 5 years is more
workable).
Because their investigation looked comparatively at districts throughout the state as a point of reference,the
Grand Jury also noted that they found that compensation varied widely among the various districts they studied.
Their report also offered some insights into some of the abuses that they found,the most common of which were:
o Unsubstantiated travel requests
o Misuse of per diem or meeting compensation
o Excessive overtime
Steven Eggert, President of the Board of Sacto Suburban Water District- In the interesting position of
describing the district's actions in the wake of all the controversy,which include:
12/10/2003
Message Page 2 of 3
o New procurement policy
o New travel policy,including a$5000 per year cap on travel expenses
o A definition of"meeting" (unfortunately, this was not specified)
o An ethics policy for the Board
o Hiring of an independent CPA
o Directors were requested to reimburse the district for all unauthorized travel expenses,which
they have all complied with.
He also offered some recommendations for possible legislation,including:
o Require reporting of compensation&travel expense at every meeting
o Define"meeting"...perhaps only Brown Act meetings?
o Any increase in compensation MUST include a public hearing
o Enhanced scope for mandatory annual audits
o Require changing of audit partners every 5 years(not necessarily changing firms)
o Consider the possible impacts of special reporting relationships that could provide cover for
abuse
o Reimburse only"reasonable and necessary"travel expenses
o Mandatory ethics training for directors every year
Sen. Ortiz raised the possibility during her questioning of districts being regulated by the FPPC. While there was
no particular reaction to this concept, it is important to note where the legislators may be focusing.
The second panel was titled"Special Districts Response"and it included representatives from seven statewide
associations that represent various types of special districts. Most of the presentations were relatively brief and
focused primarily on the programs and services offered by those associations in the areas of ethics,financial
accountability and other related issues. Among the more interesting tidbits:
o Bill Miller of CSDA noted that some smaller districts lack the resources and expertise to
implement some of the elements that had been suggested as possible mandatory requirements
by the state.
o Bette Boatmun of ACWA started her presentation by indicating how"outraged"she was at the
recent controversial activities that have come to light. She expressed ACWA's continued
commitment to the promotion of ethical procedures among its member agencies. She voiced a
couple different reactions,noting that several of the issues raised (e.g. mandatory audits)
seemed appropriate,but also noting that special districts are a highly diverse group("one size
does NOT fit all"),and urging 'district-specific'actions.
o Sen. Machado asked of this entire panel whether or not all"meetings" that qualified for a stipend
should be public,and all agreed that they should. There was some lingering question later in the
day, however, about the difference between a public meeting(i.e. a meeting held and then
reported in a public meeting)versus a Brown Act meeting,at which the public would be
welcome.
o Sen. Ortiz engaged in a lengthy interaction that seemed to indicate strongly that she felt that any
involvement in a retirement system on the part of special district directors was in direct
contradiction to legislative intent. This revolves around the 1993-94 PERS legislation that
permitted city and county officials to be part of PERS, but specifically did NOT offer such
eligibility to special district board members. Ortiz seemed to be applying the intent of that
legislation to all retirement programs.
The final panel was titled "Monitoring and Oversight'and included representatives from five state agencies. The
agenda was very time pressed by this time,so these presentations were very short and focused mainly on the
roles of these agencies as they are currently constituted. Highlights:
o Walter Bames of the State Controller's office provided some interesting figures regarding the
budgets of special districts. According to their research, most of the abuses identified occurred
within the administrative and/or general budgets of the agency,which represented (on average)
about 15%of the total budget. Because the abuses are most likely to be an relatively small
portion, even of those budget subsections,which could make it difficult for auditors to uncover.
Mr. Bames also pointed out the difference between dependent and independent(of the 900f
water districts, less than 200 are dependent). Independent districts, he contended,were not
bound by the same type of requirements and,therefore,may not utilize appropriate audi ing or
accounting principles, may not mandate ethics training, and may not have implemented
procedures that seek to prevent abuse. The Controuees office has an audit due in December
that will shed further light on this matter.
12/10/2003
Message Page 3 of 3
o Nancy Lyons of the Little Hoover Commission highlighted some findings of their most recent
report on this issue,which included:
• A look at the Influence of compensation on Board behavior
• A look at the role of LAFCO
• A look at the electoral system's impact on boards(apparently less than half of the
special district elections they studied were actually contested)
• A recommendation that special district revenues be publicly communicated, including
the designated purpose
• An observation that local oversight is critical (e.g. Grand Jury,Board of Supervisors)
o Phil Jelicich of the Bureau of State Audits noted that their audit has yet to begin,but he did offer
the suggestion that special districts be provided with an"audit guide" similar to the one provided
to school districts.
While is it can be difficult to read the mind of legislators to predict their future actions,the tone of the proceedings,
the questions asked and the points made provide a general idea of some of the issues that will certainly be taken
up as legislation is formulated for the coming year, including:
✓ Definition of"meeting"
✓ A possible cap on number of meetings and/or total compensation
✓ State-mandated limit on stipend amounts
✓ Mandatory audits,possibly with mandated standards and/or rotations of auditors
✓ Regulation by the FPPC
✓ Requirements for enhanced communication and reporting of compensation and expenses, including
web publication.
Sean Fitzgerald
Townsend Public Affairs, Inc.
2699 White Road, Suite 150
Irvine, CA 92614
949.399.9050 Voice
949.476.8216 Fax
714.614.7653 Mobile
sfitzgerald®townsendpa.com
12/10/2003
NEWS FRom. . .
HOUSE
U.S. REP. CHRISTOPHER COX
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CALIFORMA http://tox.housc.¢ov pesENS�t�
Contact: Kate Whitman
(202)225-5611
House Passes Clean Water Legislation To Protect Orange County
WASHINGTON(Tuesday,December 9,2003)—Rep.Christopher Cox(R-CA),
Chairman of the House Policy Committee and Chairman of the Homeland Security Committee,
today announced that the US House of Representatives approved federal funding in the amount
of$1,400,000 to help ensure clean ocean water and clean drinking water for Orange County's
communities.
"I am pleased that our drinking water will remain clean and plentiful and our beaches and
ocean water will be safe and pure,"said Rep. Cox. "The federal investment,guaranteed
yesterday by the action of Congress,will ensure that our ocean and drinking water remains free
of unwanted pollutants. It will also provide funding for new wetlands that are central to the
natural treatment system, providing additional wildlife habitat and open space."
The bill passed by the House includes federal funding requested by Chairman Cox for the
following environmental initiatives:
• $400,000 for the Natural Treatment System to be implemented by the Irvine Ranch Water
District.
• $1,000,000 for wastewater purification and treatment,to be implemented by the Orange
County Sanitation District.
The funding will help Orange County meet new,higher standards that Congress has required
for ensuring clean water. The Orange County Sanitation District(OCSD)will use the federal
assistance to plan and design facilities to improve water quality. The funds will also allow the
Wine Ranch Water District to continue the planning of the Natural Treatment System project.
"While clean ocean water is a vital resource for everyone,it takes on added importance when
you live along the coastline as we do. With beaches,wetlands,and bays in our midst, water
quality is a top concern. This funding provided by Congressman Cox will ensure that our local
recreational water resources remain healthy and clear,"Newport Beach Councilman Tod
Ridgeway said.
In October,the U.S. House of Representatives unanimously passed H.R. 1595,the
"Irvine Basin Surface and Groundwater Improvement Act."The legislation,authored by Rep.
Cox,allowed the Bureau of Reclamation to assist in the planning,development and design a
natural treatment system for Orange County--a series of man-made wetlands that will clean
surface runoff within the San Diego Creek Watershed. In addition, the new wetlands that are
central to the system will provide additional wildlife habitat and open space.
For more information please go to http://cox.house.gov
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COPY To ev%T'
Co PY re 9r4FIMMae4
Board of Directors December 11, 2003
Arlene Schafer
Greg Woodside
James Ferryman
Art Perry Mr. Blake Anderson
Dan Worthington General Manager
Orange County Sanitation District
P.O. Box 8127
Fountain Valley, CA 92728-8127
staff
Robin B.Hamers Subject: WDR Education Program
Manager
District Engineer Dear Blake:
(949) 631.1731
The Costa Mesa Sanitary District Board of Directors wish to provide an
Thomas A.Fouth explanation for declining participation in the regional Waste Discharge
Assistant Manager Requirement(WDR) education program for the proper disposal of fats and
(714) 734-3043 grease. OCSD is administering the program and providing professional
staff to accomplish the program goals. The Sanitary District is declining
Joan Rewk due to the timing of the regional effort and because the Sanitary District
Clerk of the District has already satisfied the education program requirements of the WDR.
(714) 754-5087 Board and Staff of the District are very sensitive to this matter and want to
Insure the reasons for declining participation are understood.
In addition to the Sanitary District's ongoing education program of flyers,
Fax newsletters, articles and handouts, the Sanitary District is utilizing the fats,
(714)431-1436 oils and grease (FOG) characterization study as another means of
distributing Information. The Sanitary District produced 400 notebooks for
the food service establishment owners and inside each notebook is
specific information regarding the proper handling and disposal of FOG.
Malling Address Enclosed for your use is a sample of the notebook and other information
P 0. 13av 1500 referred to above. You are welcome to distribute and use the information
Costa Mesa. CA as you so chose.
92618-1300
The Sanitary District also extends its appreciation to OCSD for taking the
lead in the regional WDR effort. OCSD has certainly dedicated its
professional staff and resources to assist the member agencies in
strwei Address achieving compliance with the Order. In this regard, the Costa Mesa
77 A✓ir Drive Sanitary District Manager/District Engineer, Assistant Manager and
Costa Mesa CA Attorney are also active on the steering committees and assisting other
92626 020 agencies in achieving compliance.
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4,t ,e„✓•.„ Protecting our comeminitg's hen(ti7 bV provibing snfi) imste anb sewer c0((ection services.
costamesasanitarvbisrrimorg
WDR Education Program December 11, 2003
Page 2
�—p Lastly, I would like to take this opportunity to personally thank you and
your organization for setting such high standards for professionalism and
courteousness. Over the last 20 years I have been treated professionally
and courteously 100% of the time by every member of the organization
beginning when I call on the phone or arrive at the front door. You are
welcome to pass on these compliments to your outstanding organization.
Every member of OCSD deserves high praise for their continued
dedication, assistance provided to other agencies and the public, and for
achieving so many highly technical and scientific advancements.
Sincereelly,, '..
11 ff1 1—
Robin B. Harriers
Manager/District Engineer
Encl.
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