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Home My WebLink About2004-03 DRAFT MINUTES OF STEERING COMMITTEE MEETING.EOFFICE OF IeseeReTARr oRANrr -.... ...._._..N nISTRICT Wednesday, March 24, 2004 APR 282004 A meeting of the Steering Committee of the Orange County Sanitation Diste¢t was 1� held on Wednesday, March 24, 2004 at 5 p.m., in the District's Administrative O Ice. (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 Darrel Cahoon Jim Ferryman, Chairman, OMTS Committee Gerhardt Van Drie Brian Donahue, Chairman, PDC Committee Peer Swan, Director Brady's alternate Jim Silva, County Supervisor Norm Eckenrode, Past Board Chair STAFF PRESENT: Blake Anderson, General Manager Directors Absent: Bob Ghirelli, Director of Technical Services Brian Brady, Chairman, FAHR Committee Gary Streed, Director of Finance[Treasurer Carol Beekman, Communications Services Manager Layne Baroldi, Legal & Regulatory Affairs Liaison Jan Collins, Principal HR Analyst Mike Moore, ECM Manager Jean Tappan, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS Gerhardt Van Drie addressed the Committee regarding the refusal of the General Manager to allow a demonstration project at the front entrance before a board meeting. (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the February 25, 2004 Steering Committee meeting were approved as drafted. (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Shirley McCracken announced that reservations for the April 29-May 1 Squaw Valley CASA conference are due to Jean Tappan March 26. She also reminded the directors of the two special workshops; March 31 on the CIP and April 21 on the GWRS program. Minutes of the Steering Committee Page 2 March 25, 2004 (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson provided reports on biosolids including the loss of our Nevada site in Nye County and the very favorable comments staff has received from the Grand Jury on our biosolids management program. The Steering Committee agreed with staff recommendation that the standing committees not meet in August. The General Manager and Director of Finance updated the steering committee on the early budget numbers for next fiscal year. At this time a 7.5 percent increase in our operating budget for treatment facilities and various environmental protection programs is anticipated. There will be a one-day meeting of the Orange County Leadership Symposium on April 30. Jim Silva hosted a luncheon last week with several agencies to address ways to cooperate with each other and understand institutional arrangements with other agencies. It was agreed that these meetings will continue with different sponsors for each meeting. The General Manager reviewed the bid results for the GW RS advance water treatment system and discussed the actions the agencies and the design engineers have planned, before reporting to the GWRS Steering Committee on April 12. The recent OC Register news articles and opinion piece about urban runoff and secondary treatment were discussed. Director Ferryman asked the General Manager to respond to the editorial. Mr.Anderson reported that a meeting has been scheduled for April 5 with SAW PA, counsel and Gary Hunt to continue negotiations on the SARI protection or relocation agreement. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff updated the directors on Senator Ortiz's bill that is focused on correcting abuses by some special districts, including limiting compensation, stipends, perks and ethical conduct. No hearings have been scheduled to date. Mr.Woodruff also mentioned that because our property taxes are earmarked for debt payment,they should be safe from any takeover by the state. An item will be going to the April Board to reaffirm our position. (8) DISCUSSION ITEMS (Items A-B) A. The Agenda Items scheduled to be reviewed by the Board's working committees in April were reviewed. B. 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 were none. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING Director Eckenrode asked that the GW RS visitors center be discussed Minutes of the Steering Committee Page 3 March 25, 2004 (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, April 28, 2004 at 5 p.m. The next Board Meeting is scheduled for Wednesday, April 28, 2004 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:08 p.m. in Closed Session, pursuant to Sections 54956.9, 54957.6, and 54957 to discuss two items of pending litigation, and three items of employment actions , each of which is listed on the published agenda. 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. Su fitted by: jeeXTappan StAVng Committee Secretary k��se � sc.u:ve STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and the Agenda for the Steering Committee meeting to be held on March 24, 2004, was duly posted for public inspection in the main lobby of the District's offices on Thursday, March 18, 2004. IN WITNESS WHEREOF, I have hereunto set my hand this 20 day of March, 2004. v n E. Tappan, Actinfl Secretary and of Directors Orange County Sanitation District Posted: 411AA 6(011 &Ad,200y p A.M. (o By: Signature H-.ZEPTAGENDAVPOSTING%COMMnTEE POSTING CERTIFICATION FORM.DOC ORANGE COUNTY SANITATION DISTAirr BOARD SECRETARY (2) eb..: 419BS2411 fell 4)962-0 56 asid.. add...: .0.Bue127 NOTICE OF MEETING h`ei'CA W728-8127 OF THE .4e,.,., STEERING COMMITTEE ails U Will,CA '927BBa01e ORANGE COUNTY SANITATION DISTRICT wmlee WEDNESDAY, MARCH 24, 2004 - 5 P.M. • Cities Ahah. DISTRICTS ADMINISTRATIVE OFFICE Brea Bugle Pens 10844 ELLIS AVENUE Q"'ss mm vanes FOUNTAIN VALLEY, CALIFORNIA 92708 Fulkrron n Beach ruin. Le Haers L.Palm. A regular meeting of the Steering Committee of the Board of Directors of Los Alemaos art Beach Orange County Sanitation District will be held at the above location, date and °i'e^ae time. Peen . Sane Ans Seel Beach Svmm� u tin Vale Pe k YgMa Linda .f 0r.... FILED B.Nery OlrtNeu IN THE OFFICE OF THE SECRETARY Caste Mess ORANCF n- ^' ^• •-anal DISTRICT Midway Gry MAR 2 4 2004 lA.t.r OWN.. T.maintain.,Id class leaticrship m wastewater and water res.vrce management. STEERING COMMITTEE AND BOARD MEETING DATES FOR THE NEXT TWELVE MONTHS Wednesday, March 24, 2004 Wednesday, April 28, 2004 Wednesday, May 26, 2004 Wednesday, June 23, 2004 Wednesday, July 21, 2004' Wednesday, August 25, 2004 Wednesday, September 22, 2004 Wednesday, October 27, 2004 Wednesday, November 17, 2004' Wednesday, December 15, 2004' Wednesday, January 26, 2005 Wednesday, February 23, 2005 Wednesday, March 23, 2005 `Rescheduled from regular fourth Wednesday. STEERING COMMITTEE (1) Roll Call: Meeting Date: March 24, 2004 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 Dan Hughes Staff Present Blake P. Anderson, General Manager................................ Bob Ghirelli, Director of Technical Services....................... David Ludwin, Director of Engineering............................... Patrick Miles, Director of Information Technology.............. Robert Octen, Director of Operations& Maintenance........_ Gary Streed, Director of Finance/Treasurer....................... Lisa Tomko, Director of Human Resources........................ Carol Beekman, Communication Services Manager.......... Jean Tappan, Secretary..................................................... c: Lenora Crane AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, MARCH 24, 2004 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 hem are available for public inspection in the office of the Board Secretary. Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or because there is a need to take immediate action,which need came to the attention of the Committee subsequent to the posting of agenda,or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations,please contact the Orange County Sanitation District Board Secretarys office at(714)593-7130 at least 72 hours prior to the scheduled meeting. Requestamuet specify the nature of the disability and the type of accommodation requested. Items Continued: Items maybe 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). (1) ROLL CALL (2) APPOINTMENT OF CHAIR PRO TEM, IF NECESSARY (3) PUBLIC COMMENTS All persons wishing to address the Steering Committee on specific agenda items or matters of Book page I -2- March 24, 2004 Agenda 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 February 25, 2004 Steering Committee meeting. (5) REPORT OF COMMITTEE CHAIR A. CASA Conference, April 28—May 1 (6) REPORT OF GENERAL MANAGER A. Biosolids Update 1. Response to NV Senator Reid re Nye County Site (see attached letter) 2. Synagro Contract Amendment (see attachments) B. Request by General Manager to use August as a dark month for Committee meetings C. Update on FY 04-05 Budget Process D. OCLS April 30"Mid-Term" Meeting (7) REPORT OF GENERAL COUNSEL (8) DISCUSSION ITEMS (Items A-B) A. Review Agenda Items scheduled to be presented to Committees in April (Information item only) B. Review and consideration of Agenda Items for Board of Directors Meeting of March 24, 2004 (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING Book page 2 -3- March 24, 2004 Agenda (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (12) FUTURE MEETING DATES There will be a special Directors Workshop on Wednesday, March 31, 2004 at 5 p.m.to discuss the Capital Improvement Program. As a reminder, the April 8, 2004 PDC Committee meeting will begin at 3:30 p.m. to accommodate those attending the League of Cities meeting that same day. There will be a special Joint OCW D/OCSD Directors Workshop on the status of the GW RS program on Wednesday,April 21, 2004 here at the District beginning at 5 p.m. The next Steering Committee Meeting is scheduled for 5 p.m.,Wednesday,April 28, 2004. The next Board Meeting is scheduled for 7 p.m., Wednesday, April 28, 2004. (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, i(necessary 1. Confer with General Counsel re Orange County Sanitation District, at al. v. County of Kern, at al.,Tulare County Superior Court Case No. 189564, pursuant to Government Code Section 54956.9. 2. Confer with General Counsel re Orange County Sanitation District v. County of Kings, at al., Kings County Superior Court Case No. 02C0835, pursuant to Government Code Section 54956.9. 3. Consider recommended pay grade adjustments for the Executive Management pursuant to Government Code Section 54957.6. Book page 3 -4. March 24, 2004 Agenda 4. Convene in closed session to consider General Manager's Annual Performance Evaluation and Compensation pursuant to Government Code Section 54957.6. 5. 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 N:�ENOAl9iEERING COMMITfeaWrWMN 4N MIeND&DOC Notice to Committee Members: For any questions on the agenda or to place items on the agenda,Committee members should contact the Committee Chair or the Secretary ten days in advance of the Committee Meeting. Committee Chair: Shirley McCracken (714)765-5247(Anaheim City Hell) Committee Staff Contact: Blake P.Anderson (714)593-7110 General Counsel: Thomas L.Woodruff (714)564-2605 Secretary: Jean Tappan (714)593.7101 (714)962-0356 (fax) E-mail: jtappan®ocsd.com Book page 4 DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, February 25, 2004 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, February 25, 2004 at 5 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: OTHERS PRESENT: Directors Present: Thomas L. Woodruff, General Counsel Shirley McCracken, Chair Don Hughes Steve Anderson, Vice Chair Ana Burkhart Jim Ferrymen, Chairman, OMTS Committee Doug Stack Brian Donahue, Chairman, PDC Committee John Hogan Brian Brady, Chairman, FAHR Committee Jim Silva, County Supervisor Norm Eckenrode, Past Board Chair STAFF PRESENT: John Collins, Guest Blake Anderson, General Manager Roy Moore, Guest Bob Ghirelli, Director of Technical Services David Ludwin, Director of Engineering Directors Absent: Gary Streed, Director of Finance/Treasurer None Lisa Tomko, Director of Human Resources Jean Tappan, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the January 28, 2003 Steering Committee meeting were approved as drafted. Book page 5 Minutes of the Steering Committee Page 2 February 25, 2004 (5) REPORT OF THE COMMI7TEE CHAIR Committee Chair Shirley McCracken reported that she was happy to be back and thanked Steve Anderson for acting as Chair pro tern in her absence. Chair McCracken reported that the Legislative Affairs Committee continues to meet. She announced that Director Tod Ridgeway was in Washington, DC, where he attended the Orange County water community's annual luncheon with our representatives and their staff members today representing the Sanitation District. This is an opportunity for Orange County water agencies to talk about the broad water quality and water supply issues that are important to us. The Steering Committee is evaluating our existing policies regarding Directors' business expense reimbursement, travel reimbursement and meeting compensation. Directors Anderson and Brian Brady are operating as a sub-committee of the Steering Committee. The Committee took a preliminary look at the new draft policy and agreed to put consideration on hold awaiting the outcome of the Ortiz bill in Sacramento. (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson reported that a complaint has been filed against our biosolids operation in Nevada. Staff is meeting with Senator Reid's office on this issue. He also provided an update on in-county biosolids alternatives and the ocean discharge permit process. Bob Ghirelli, David Ludwin, Bob Ooten, General Counsel and several other staff members met with EPA and the Regional Board in San Francisco Tuesday, February 24. They reported that things went well and that we expect terms and conditions that will meet our needs. A draft permit is expected in March. Mr. Anderson also reported on the on-going negotiations with SAW PA. While there has been some forward progress, there are still disagreements about how much capacity SAW PA currently owns in our outfall and four other issues. It appears that the Legislative Analysts Office in Sacramento is recommending that a portion of special district property tax revenues be transferred to each of the County Board of Supervisors for discretionary distribution. Gary Streed, Director of Finance, reported that debt service is pledged against revenue and may be protected. The Steering Committee directed staff to wait and see what develops after the election, review our options and report back to the Committee. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff reported that the CA Supreme Court denied Crow-Winthrop's petition and the case is closed. Book page 6 Minutes of the Steering Committee . Page 3 February 25, 2004 (8) DISCUSSION ITEMS (Items A-D) A. Revisions to Delegation of Authority Resolution Gary Streed reviewed the proposed changes and said that these would be taken to the OMTS and PDC Committees as information items. The FAHR Committee and Board will be asked to approve them in March. B. Carbon Canyon Trunk Sewer and Pump Station Abandonment Jim Herberg provided a report on the proposed development north of Brea in both Los Angeles and Orange Counties and outlined the alternatives for sewering them. Staff brought this issue to the attention of the Steering Committee because of the controversial nature of the project related to the development in the Brea and La Habra Hills. Directors Roy Moore and John Collins were asked to attend the meeting because the project has expanded service area implications that are important to their cities. City of Brea representatives Doug Stack and John Hogan provided background information. The Rowland Water District would be the local sewering agency. The main issue is whether to include in the EIR the alternative to size the new Carbon Canyon Trunk Sewer larger than needed to serve the entire area. Staff was given information direction to move the EIR forward, including an evaluation of pipe sizing that will and will not accommodate future development. Chair McCracken assigned Roy Moore, Brian Donahue and Steve Anderson to an ad hoc committee to advise staff on the overall issues and to provide input to the Steering Committee. C. The Agenda Items scheduled to be reviewed by the Board's working committees in March were reviewed. D. The agenda items scheduled to be presented to the Board at tonight's meeting were reviewed. Additional information was provided on Agenda Item 13.(1), a non-consent PDC Committee item regarding the PSA with Black and Veatch and the procedures for issuing task orders. (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,IF ANY Chair McCracken announced that a supplemental agenda item has been added to tonight's agenda. This is the report from the NW RI Blue Ribbon Panel on their findings on the asset management strategic plan, which the Steering Committee considered at its January meeting. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEOUENT MEETING There were none. Book page 7 Minutes of the Steering Committee Page 4 February 25, 2004 (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, March 24, 2004 at 5 p.m. The next Board Meeting is scheduled for Wednesday, March 24,2004 at 7 p.m. There will also be a special Directors Workshop on the CIP on March 31 at 5 p.m. (13) CLOSED SESSION The Committee convened at 6:38 p.m. in Closed Session, pursuant to Sections 54956.9 and 54957.6,to discuss two issues. 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. S tted by: Jepqappan Sng Committee Secretary N;bplNpe,xle l5,ow+p Ccmm'nNI01Fe0 bII50a SC Nn,nBs.Orc Book page 8 1N1 9 b p f I-J iN March 8, 2004 MEMORANDUM TO: Board of Directors FROM: Jim Ferryman, Chairman Operations and Maintenance/Technical Services (OMTS) Committee SUBJECT: Biosolids Management Options At the March 24, 2004 Board Meeting I would like to take a few minutes during my report to review with you an information item that was presented to the OMTS Committee earlier this month. The Rem relates to the future direction of the District's biosolids management program and the process that will be used to select contractors and vendors to provide these services to the District. A copy of the OMTS agenda report is attached. The District will soon be going out into the marketplace with Requests for Proposals to solicit proposals from vendors for new biosolids processing technologies and markets. The volatility of the biosolids world will require the board to consider a variety of options for procuring these services. The OMTS Committee had a good discussion of the issues and I'd like to share those thoughts with the full Board before these matters are presented to the board for action at future meetings. JF:rm eiosolios Management Options-J Ferryman Memo to Board 3-8-04 Attachment OC O P.O.Box 819 FounhinYallry,CA 9212M12) (714)962-2411 0, page Y OMTS COMMITTEE Meeang Date I To Bd.or Dir. 3/3/04 AGENDA REPORT 1temNumber nemNumter onrrsaao Orange County Sanitation District FROM: Robert P. Ghirelli, D.Env., Director of Technical Services Originator: Layne Baroldi, Legal & Regulatory Affairs Liaison SUBJECT: BIOSOLIDS MANAGEMENT OPTION IMPLEMENTATION PROCESS GENERAL MANAGER'S RECOMMENDATION Staff is seeking the OMTS Committee's direction regarding the process to utilize in the implementation of the Long-Range Biosolids Management Plan recommendations. SUMMARY • The Long Range Biosolids Management Plan (Plan) presented an analysis of potential biosolids treatment technologies and markets for biosolids derived products, an analysis of treatment plant processes to reduce overall biosolids handling and treatment costs, and a long range implementation strategy. • The Plan's implementation strategy recommended the following transition to get to the production of Class A biosolids: 1. Work within existing contracts to develop merchant facilities: • Tule Ranch is producing Class A biosolids (lime-stabilized) in Kern County for $35/ton and $33/ton in Kings County • Synagro is producing a limited amount Class A biosolids composted in Arizona, on Tribal land in San Bernardino County and in Riverside County for $39.50/ton. Synagro has obtained a majority of the necessary permits for a proposed composting facility in Kenn County (SKIC). 2. Pursue interim RFPs for merchant facilities: • RFPs for composting, direct energy (power generation) and heat drying are being developed. • A consultant has been hired to assist staff in developing the RFPs. • The RFPs are anticipated to be released in April. • The RFP responses are expected to be received in July. • Contract recommendations are expected to be made to OMITS in September. • Biosolids processing site permitting, design and construction, pursuant to contracts awarded through the RFP process are expected to take a minimum of three years (if achievable at all) before being ready to process biosolids. Book page 10 3. Pursue in-county options (future) • Staff is researching the feasibility of developing a compost facility in Orange County. 4. Use low cost Class B options as long as feasible. • Availability of land application of Class B biosolids in Arizona and Nevada is estimated to be less than three years. Costs range fro $37.75 to$39.50/ton. • Limited amount of Tribal land is considered more secure. Cost of$39.50/ton. 5. Pursue landfills as failsafe backup option. Implementation Ootions • Utilization of the RFPs only. This process would provide staff with the ability to have a competitive process to select OCSD's future biosolids management option(s) in a process that would take a minimum of several months. Since most of the options that are anticipated to be proposed are in the concept phase of development the selected biosolids management option(s) pursuant to a RFP may not be successful in permitting and development. These delays may cause OCSD's existing biosolids management options viability to lapse prior to the implementation of options selected pursuant to the RFPs. An RFP only process would preclude staff from amending existing contracts for opportunities that are immediately available but may lapse due to CUP time restraint requirements for site development. • Utilization of a RFP and amend existing contract(s). This process gives staff both the benefits of the RFP process while allowing staff to avail itself to current biosolids management opportunities that have been firmly established through permitting and design. Staff and consultants have a keen understanding of the marketplace and would demand that a contract amendment be competitive before making a contract amendment recommendation to the OMTS Committee. This process also insures that the existing management option(s) viability will not lapse prior to the implementation of management option(s) selected pursuant to the RFPs. • Amend existing contract(s) only. This process would allow staff to avail itself to current biosolids management opportunities that have firmly established permits and design but would preclude the benefits of the RFP process. The amendment would provide for competitive biosolids management pricing before a recommendation is made to the OMTS Committee. This process would also insure that the existing management option(s) viability will not lapse. This option would preclude OCSD from the benefits of selecting biosolids management option(s) pursuant to the RFPs. • Other option(s) as recommended by the OMTS Committee. PRIOR COMMITTEEIBOARD ACTIONS 1. November 2003 OMTS/PDC: Information only item regarding existing policies and potential future reuse costs outlined in the Plan. Book page 11 2. October 2003 OMTS/PDC: Information only item regarding the various in-plant treatment optimization options evaluated in the Plan. 3. September 2003 OMTS/PDC: Information only item regarding the biosolids product markets and product technologies. 4. August 2003 Board: Approve Addendum No.2 to the Professional Services Agreement with CH2M Hill, Inc. for an additional amount of $785,079.78. 5. July 2003 Board: Receive and file Draft Plan, Job No. J-40.7, dated June 2003, prepared by CH2M Hill, Inc. 6. September 2002 Board: (1) Approve a budget amendment of$100,913; and (2) Approve Professional Services Agreement with CH2M Hill, Inc. for an amount not to exceed $490,913. 7. February 2002 Board: (1) Approve a budget amendment of $157,942.17; and (2) Approve Addendum No.1 to the Professional Services Agreement for an additional amount of $157,942.17. PROJECT/CONTRACT COST SUMMARY No new authorization of expenditures is being requested at this time. BUDGET IMPACT ❑ This item has been budgeted. (Line hem: , Page ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION Plan's Merchant Facilities Information • The Plan states that the "merchant facility"alternatives must be pursued to bridge the gap between the imminent phase-out of existing beneficial use alternatives and the implementation of OCSDowned and OCSD-operated facilities in 8 to 15 years. This is because OCSD-owned facilities could take over eight years to site, permit, design, and construct. • The Plan recommends that OCSD immediately begin the process of contracting for biosolids management under more sustainable merchant facility contracts enabling OCSD's participation in more stable biosolids-based beneficial use markets within the next 1 to 2 years. It is anticipated that new contracts with merchant facilities, with guaranteed tonnage and contract durations, will bridge the gap between the phase-out of existing options and the startup of future District-owned facilities. Book page 12 • The Plan found a limited number of merchant facilities that were in a position to implement new management options within a 2-year window available to OCSD under existing management contracts. The Plan recommends seeking both new contracts through solicitation by a Request for Proposal and an extension of existing contracts where OCSD preferred management options can be accessed. • Synagro's composting facility (SKIC) is a 700-acre site located in Kenn County that was created for heavy industrial development. Synagro has amended the site's extensive permits to include the development of a composting facility. Synagro has acquired an option on the site. • An amended Conditional Use Permit (CUP)was recently unanimously approved by the Kern County Board of Supervisors, the Environmental Impact Report was certified, and the Waste Discharge Requirement (WDR) permit and the air quality permits are underway. Synagro anticipated that SKIC will be in operation by October 2005. Unfortunately, unless Synagro obtains commitments from agencies to manage biosolids at SKIC the viability of the CUP will soon lapse. • The advantages of the SKIC are its remote location, a flat grade, proximity to Interstate Highway 5 and State Highway 99, and the very limited adverse comments received during the Environmental Impact Report (EIR) process. The SKIC facility appears to be the most feasible composting facility in Southern California available to OCSD at this time with an existing vendor. Current Biosolids Management Options Contract EsL Tons Management Estimated Company End Managed Option Cost per Probable Processing Date r Year' Offered Ton Annual Cost Location Synagro 7/2005 81,000 Class B land app. $39.50 $3,200,000 Tribal AZ, CA, NV Class B land app. $39.50 Private,AZ Class A compost $39.50 Tribal AZ, CA, NV Class A compost $39.50 Private,AZ/CA CA Soil 3/2007 26,000 Class B land app. $37.75 $982.000 Yuma County, AZ Products Yakima 1/2012 0 Landfill cover $35.00 $0 La Paz County,AZ Tule Ranch 1/2005 130,000 Class B land app $38.75 $4,680.0002 Arizona Landfill disposal $32.75 Kam County,CA Class A stabilized $35.00 Kam County Class A stabilized $33.00 Kings County Based on 237,000 tons of biosolids produced per year. Tonnage allocations are expected to vary due to factors including inclement weather, material management issues,and regulatory developments. r Estimated annual cost based on an average cost of$36.00 per ton. ALTERNATIVES Not Applicable. Book page 13 CEQA FINDINGS Not Applicable. ATTACHMENTS None Book page 14 ORANGE COUNTY SANITATION DISTRICT b March 10, 2004 Phase: Honorable Harry Reid 17141962-2411 United States Senate It. (71a)962U 56 Washington, DC 20510-2803 wamr.Paed.mm mania,eiareas: Dear Senator.Reid: PO. Brat 9127 fountain Valley,OA 9272B.6127 On behalf of Orange County Sanitation District (OCSD) I am providing an st„aaa address; update on OCSD activities surrounding the management of biosolids. OCSD 108"Ellie Avenue has been a leader in developing environmentally responsible approaches to fountain Valley.OA 92]OB-]018 the management of biosolids generated in the process of complying with Clean Water Act mandates. OCSD is especially proud of being the first agency in the Member nation certified by the National Biosolids Partnership for development and ^a•^`I^• implementation of our biosolids management program. OCSD is dedicated to managing biosolids in the most effective manner possible and more Cities importantly, protecting human health and the environment. As part of our Aneheim commitment we are initiating a number of activities that will have an effect on nes Buena vaank your state and specifically Armagosa Valley. &yPrass Feunapentrey Pu e' Over the past 10 months, OCSD contracted with Solid Solutions to land apply a w re mn B•'d^n Grove permitted volume of biosolids to farmland in Armagosa Valley. All activities I Vngton Beath kwhe were taken in accordance and compliance with applicable state and federal L•Heb a La mandates. This activity was initiated as a limited and temporary management Palma Loa Alessi. option important to the affected farming community to ensure that farmlands "a"'°`man`; were adequately conditioned for non-human crop production. Ann;P A, saweMA eA Beath Biosolids management sites used and technologies employed by OCSD are Stances constantly changing due to factors including weather, crop requirements, new Tustin M.Park technologies and regulatory requirements. Consequently, opportunities to rare. Lin I. utilize new Class A biosolids composting capacity have resulted in OCSD's Casty ar o.aag. plans to reallocate the four trucks per day of biosolids that are currently being recycled in the Armagosa Valley to alternative sites. OCSD has anticipated Baaltam Districts this change since operations began in the Armagosa Valley. Therefore, we Casts Was plan to proceed with a formal termination of the Armagosa Valley site effective M,dw•y cry Friday, March 26, 2004. OCSD feels it is essential that we alert you to this Water Dlwi.ts Imminent change given your role as a leader on the Committee on "a h Environment and Public Works and your diligence in ensuring effective government regulation of biosolids. To maintain world-dsffdWerse j5 wastewater and water resource management. Honorable Harry Reid Page 2 March 10, 2004 1 look forward to working with you and your staff to ensure that all of your concerns regarding water quality improvements are addressed. Should you or any of your staff have any questions, please contact me at(714)-593-7110, or Eric Sapirstein or John Freshman at (202)-466-3755 or(202)-965-5196 respectively. Sincerely yours, AYQ2L- Blake P. Anderson General Manager Orange County Sanitation District SW:hy Book page 16 STEERING COMMITTEE Meet ng Date To ad.or Dir. 3/24104 AGENDA REPORT IIteg N mbe Item Number Orange County Sanitation District FROM: Blake P. Anderson, General Manager Originator: Jean Tappan, Committee Secretary SUBJECT: April Agenda Items for Consideration by Working Committees GENERAL MANAGER'S RECOMMENDATION Review with staff the agenda items tentatively scheduled for review by the Working Committees in April. SUMMARY Staff routinely prepares for the Steering Committee a list of items scheduled for presentation to the Working Committees and the Board at their next monthly meetings. This allows the Steering Committee the opportunity to review these items early enough to make reassignments in the review or approval process. The following items are scheduled to be considered by the Committees in April: OMTS Committee: 1. Report on Asset Management Implementation Plan 2. Consider Fountain Valley Fueling Agreement 3. Consider Sludge Density Meters Replacement 4. Consider Amendment to Synagro Contract PDC Committee: 1. Ratify Change Order No. 2 to Contract No. 11-22, Warner Avenue Relief Sewer 2. Approve Closeout Agreement for Job No. J-87, Short-term Ocean Outtall Bacteria Reduction 3. Ratify Change Order No. 7 to Job No. J-35-2, Area Classification Study Implementation at Plants Nos. 1 and 2 4. Approve Amendment No. 4 to PSA for Job No. 132-60, Solids Storage and Truck Loading Facility at Plant No. 2 5. Approve Amendment No. 7 to PSA for Job No. P1-37, Primary Clarifiers 16-31 and Related Facilities 6. Approve Amendment No. 3 to PSA for Job No. J-40-5, Supplement No. 1 to the 1999 Strategic Plan Program EIR 7. Report on Draft EIR for Treatment Plant No. 2 Headworks Replacement Project, Job No. P2-66 FAHR Committee: 1. Recommend Sewer Service User Fees for 2004-05 2. Consider Human Resources Policies and Procedures 3. Safety Policies Update 4. General Manager's Employment Contract 5. Consider Temporary Services Contract Book page 17 PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION NA ALTERNATIVES NA CEQA FINDINGS Not a project. ATTACHMENTS NA jt e:eem.u.a Wnvc—�ww. 4w uu a iwr -Wv R—.. a� Page 2 Book page 18 STEERING COMMITTEE Meeting Date To W.of Dr. 3/24/o AGENDA REPORT I I gNugeer Item Number Orange County Sanitation District FROM: Blake P. Anderson, General Manager Originator: Jean Tappan, Committee Secretary SUBJECT: March 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 March 24, 2004 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 March 24, 2004 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 petition from Eduardo Bottger requesting annexation of 1.09 acres to Orange County Sanitation District, in the vicinity of Meads Avenue and Orange Park Boulevard, in an unincorporated area of Orange County; and, (2) Adopt Resolution No. OCSD 04-XX, authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-41 — Bottger Annexation). b. Authorize the Orange County Sanitation District General Manager to enter into a license agreement with the County of Orange for the operation of an urban runoff diversion pump station at Orange County Sanitation District's Reclamation Plant No. 1, in a form approved by General Counsel. END OF CONSENT CALENDAR 10. Consideration of items deleted from Consent Calendar, if any. Book page 19 COMMITTEE REPORTS AND RECOMMENDED ACTIONS 11. STEERING COMMITTEE Consent Calendar a. Order draft Steering Committee Minutes for the meeting held on February 25, 2004 to be filed. Non-Consent Calendar b. Review and consideration of agenda items considered by the Steering Committee re the March 24, 2004 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 March 3, 2004 to be filed. OMITS Non-Consent Calendar b. 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 March 4, 2004 to be filed. b. PDC04-12 Ratify Change Order No. 13 to Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37, with Margate Construction, authorizing an addition of$784, increasing the total contract amount to $71,241,988. C. PDC04-13 Ratify Change Order No. 5 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, with Steve P. Rados, Inc., authorizing an addition of $409,301, increasing the total contract amount to $31,094,779. H U.M Me m,W,8aa I.d. ne.ve: erzase Page 2 Book page 20 d. PDC04-14 Ratify Change Order No. 6 for Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2,with J.F. Shea Construction, Inc., authorizing an addition of $142,606, increasing the total contract amount to $15,088,916. e. PDC04-15 (1) Approve a budget amendment of $300,000 for Short Term Ocean Outfall Bacteria Reduction, Job No. J-87, for a total budget of$8,067,396; and (2) Ratify Change Order No. 3 to Short Tenn Ocean Outfall Bacteria Reduction, Job No. J-87, with J.F. Shea Construction, Inc., authorizing an addition of$163,607, increasing the total contract amount to $4,395,349. f. PDC04-16 (1) Approve a budget amendment of$25,000 for Modifications to Main Street Pump Station, Contract No. 7-7-2, for a total budget of$994,000; and (2) Ratify Change Order No. 1 to Modifications to Main Street Pump Station, Contract No. 7-7-2, with Cora Constructors, authorizing an addition of$74,292 and time extension of 33 calendar days, increasing the total contract amount to $812,292. PDC Non-Consent Calendar g. PDG04-21 Approve Professional Services Agreement with Malcolm Pirnie providing for engineering services for Primary Treatment Rehabilitation and Refurbishment at Plant No. 2, Job No. P2-80, for an amount not to exceed $5,778,518. h. PDC04-22 Approve Professional Services Agreement with Tetra Design, Inc. providing for engineering services for Laboratory Rehabilitation in Plant No. 1, Job No. J-88, for an amount not to exceed$65,655. i. PDC04-23 Approve Professional Services Agreement with Spec Services, Inc. for engineering services for Gisler-Redhill Trunk Sewer Relocation— Phase 1, Contract No. 7-32-1, for an amount not to exceed $102,591. j. PDC04-24 Approve Professional Services Agreement with RBF Consulting for engineering services for Lemon Heights Subtrunk Street Rehabilitation, Contract No. 7-22-1, Tustin Trunk Improvements, Contract No. 7-38, and West Trunk Improvements, Contract No. 7-40, for an amount not to exceed $253,578. aew:vmsa Page 3 Book page 21 I k. PDC04-25 Approve Professional Services Agreement with HDR Engineering, Inc. providing for professional services for Supplemental Secondary Treatment CEQA Documentation, Job No. J-40-10, for an amount not to exceed $125,840. I. PDC04-26 Approve Amendment No. 2 to the Professional Services Agreement with CH2M Hill, Inc., providing for engineering services for the Effluent Pathogen Reduction Alternatives Plan, Job No. J-40-6, for an additional amount of $59,923, increasing the total amount not to exceed $393,904. M. PDC04-27 Approve Amendment No. 4 to the Professional Services Agreement with Tran Consulting Engineers for Sunflower Interceptor Manhole Rehabilitation, Contract No. 7-21, providing for additional design and construction support services for an additional amount of $152,093, increasing the total amount not to exceed $518,608. n. PDC04-28 Approve Amendment No. 5 to the Professional Services Agreement with Cathcart Garcia von Langen for Plant Utilities Rehabilitation and Refurbishment, Job No. P2-82, providing for additional design and construction support services for an additional amount of $125,820, increasing the total amount not to exceed $754,246. 0. Consider item deleted from PDC Committee Consent Calendar PDC04-17 (1) Approve time extensions to Cooperative Projects Program contracts with the following cities: Brea (CP-0101), Garden Grove (CP-0206), Huntington Beach (CP-0124), Orange (CP-0129 and CP-0130), and Sunset Beach Sanitary District (CP-0213); and (2) Approve additional funding for the FY 2003-04 Cooperative Projects Program in the amount$1,365,000, increasing the total FY 2003-04 funding to $1,540,000 and the total program since inception to an amount not to exceed $18,751,736. 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 March 10, 2004 to be filed. H:NepNpen0 IWn COmNYNN4U1lM9P404 UN 01 N Jw My Bou AK RW.W: MGM Page 4 Book page 22 b. FAHR04-14 Receive and file Treasurer's Report for the month of February 2004. The Treasurer's Report will be distributed at the FAHR Committee meeting in accordance with the Board- approved Investment Policy, and in conformance to the Government Code requirement to have monthly reports reviewed within 30 days of month end. C. FAHR04-19 Adopt Resolution No. OCSD 04-XX. Adopting Policies and Procedures for District's Records Management Program, Records Retention, and Destruction of Obsolete Records, and Repealing Resolution No. OCSD 03-06. FAHR Non-Consent Calendar d. FAHR04-21 1) Approve the use of planned recruitments, on an as needed basis, to fill key positions within the organization where an individual holding a key position has a specific termination date previously established and has submitted a letter of resignation. 2) Approve the use of a "Planned Recruitment Position Pool" administered by the Human Resources Department within the Division 540 FTE budget. 3) Approve the revisions to Recruitment Policy B150.00. e. FAHR04-22 Adopt Resolution No. OCSD 04-XX, Establishing Policies and Procedures for the Award of Purchase Orders and Contracts; Award of Public Works Project Contracts; Award of Professional Services Contracts; and Delegation of Authority to Implement Said Policies and Procedures; and Repealing Resolution No. OCSD 99-23. 15. COOPERATIVE PROJECTS GRANTS AD HOC COMMITTEE CPG Ad Hoc Consent Calendar a. Order Cooperative Projects Grants Ad Hoc Committee Minutes for the meeting held on January 21, 2004 to be filed. 16. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar a. Order Joint Groundwater Replenishment System Cooperative Committee Minutes for the meeting held on February 23, 2004 to be filed. H. eM4WdaIu Ong comeneaNN. 4N UMaa iww a Wald R.W: Page 5 Book page 23 b. Contract No. GWRS-2003-5, Groundwater Replenishment System Unit I Pipeline Project (1) Find that pursuant to California Environmental Quality Act Section 15164 that some minor changes or additions to the Environmental Impact Report/Environmental Impact Statement (EIR/EIS) on the Groundwater Replenishment System certified in March 1999 are necessary, but none of the conditions described in Public Resources Code Section 21166 and/or in Section 15162 have occurred that would require the preparation of a Subsequent Environmental Impact Report or Negative Declaration; (2) Approve Addendum No. 3 to the EIR/EIS prepared by Environmental Science Associates; and (3) Authorize award of a construction contract by the Orange County Water District (OCWD) to Ken Thompson, Inc., for construction of Groundwater Replenishment System Unit I Pipeline Project, Contract No. GW RS-2003-5, for an amount not to exceed $26,673,OD0, with OCWD and OCSD paying equal shares of $13,336,022.50. JCC Non-Consent Calendar C. Consideration of items deleted from JCC Consent Calendar, if any. CONSENT CALENDAR 17. 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 NA ALTERNATIVES xe.ova m�ueenro ca .nnmeaunsrmzaaa Us m w 'w w,eoco-v.aoc a--a: Wale Page 6 Book page 24 NA CEGA FINDINGS Not a project. ATTACHMENTS NA jt KWeVNOaGISIMM Comn111eeWV.ar 404 Wl of Ms for Nar BevErec000 aawn.rt ana.ae Page 7 Book page 25 ORANGE COUNTY SANITATION DISTRICT (714)962-24I1 w .00SD.com Mailing Address: P.O. Boa 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 published on recycled paper