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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 Mwmrw�wusw:ro cam,ewnsncaisirosscw,wsarc 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 M:IggsN°sWlMnq Comm) WOE01217WSLVOWn G ORANGE COUNTY SANITATION DISTRICT BOARD SECRETARY (2) qw m: nlal ssz-za11 j]>,qj 862-0366 .cam NOTICE OF MEETING 8127 w.cn OF THE 8127 STEERING COMMITTEE Avenue ORANGE COUNTY SANITATION DISTRICT 7618 w..�.r WEDNESDAY, DECEMBER 17, 2003 - 5 P.M. • Clcies ham DISTRICT'S ADMINISTRATIVE OFFICE area 10844 ELLIS AVENUE Pan: FOUNTAIN VALLEY, CALIFORNIA 92708 l allw G1. Baecn Irn'ne Haa A regular meeting of the Steering Committee of the Board of Directors of Perms ma Orange County Sanitation District will be held at the above location, date and seam time. aan�a A- A seem Sem� Tuadn b Perk urm OnnYa T mein[ein woHd dl leadership in wastewater and water resource menagemen[. 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 w 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 t�q S 'fa--t /z17le C'rrwwa . Costa Dees Sancta rac . r ail InDepenDent Special District 4y, I i.o3 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. i, 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. cc: Board Staff Priura✓cu P:Utectaig ONr CC1:9':Td ,� .:g r r✓ii ing safib waste q r ssitarv/disirict.urg