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HomeMy WebLinkAbout2005-11 DRAFT MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, November 16, 2005, at 5 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, November 16, 2005 at 5 p.m., in the Districrs Administrative Office. (1) The roll was called and a quorum declared present,as follows: STEERING COMMITTEE MEMBERS: STAFF PRESENT: Directors Present: Bob Ghirelli,Acting General Manager Steve Anderson, Chair Nick Arhontes, Director of Regional Assets and Jim Ferryman, Vice Chair Services Carolyn Cavecche, Chair, OMITS Committee David Ludwin, Director of Engineering Darryl Miller, Chairman, FAHR Committee Jim Herberg, Director of Operations and Tod Ridgeway, Chairman, PDC Committee Maintenance Jim Silva, County Supervisor Patrick Miles, Director of Information Technology Lorenzo Tyner, Director of Financerfreasurer Directors Absent: Gail Garrett, Committee Secretary Sonja Morgan, Principal Public Information OTHERS PRESENT: Specialist Bradley R. Hogin, General Counsel Jim Burror, Engineering Supervisor Director Roy Moore John Linder, Engineering Manager Don Hughes Ryal Wheeler, Maintenance Supervisor Tom Dawes Juanita Skillman, Records Management Richard Haimann, MWH George Basye,AERA Energy FILED IN THE OFFICE OF THE SECRETARY (2) APPOINTMENT OF CHAIR PRO TEM ORANGE rnnMrl•�'u--+TInv nl%TRICT No appointment was necessary. DEC 21 2005 By � .-------.- . _ (3) PUBLIC COMMENTS There were no comments by any member of the public. (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes for the meeting held on October 26, 2005, and the special meeting held on October 28, 2005 were approved as drafted. Minutes of the Steering Committee Page 2 November 16, 2005 (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Steve Anderson announced that OCSD and OCW D will receive the 2005 Govemors Environmental & Economic Leadership Award for Ecosystem&Watershed Stewardship for GW RS on November 22 in Sacramento. The Water Environment Federation (WEF)presented its prestigious Collection Systems Manager of the Year Award on November 1 to Nick Arhontes at the WEFTEC 2005 Annual Conference held in Washington, D.C. OCSD has also received the 2005 Public Sector Achievement Award from the California State Assembly for participating in the Santa Ana Sucker Fish Conservation Program. A presentation on "Fats, Oils and Grease (FOG) Control"will be made by OCSD staff at the Orange County Coastal Coalition meeting at the Newport Beach Public Library on November 17, at 9:00 a.m. Information packets were handed out for the 2006 CASA Mid-Year Conference at the Indian Wells, January 18 through January 21. If Directors plan to attend, please let Gail Garrett know by December 10. State Senator John Campbell was detained in Washington, DC-staff will invite him to the December 21 meeting. Finally, Chair Anderson announced the standing committee meeting dates for December. The CIP Oversight Committee will meet on Thursday, December 15. (6) REPORT OF THE GENERAL MANAGER Acting General Manager Bob Ghiretli informed that steps have been taken by Human Resources with regard to the staff letter that was circulated to the Board last month. As a result of the article about male fish with elevated levels of egg-shell protein, staff will present to the OMTS and GW RS committees a briefing to better understand this phenomenon. Director Cavecche suggested offering a lab tour to columnist Gordon Dillow. Dr. Ghirelli provided an update on the Inland Empire Utility Agency(IELIA)regional biosolids land procurement in Chino. A 45-day option agreement with a $100,000 refundable deposit on the 45 acre parcel of land will allow the District to complete a due diligence report prior to making the decision whether to go into escrow. Jim Herberg provided handouts and updated committee members on the level of treatment provided to maintain effluent quality as close to 30/30 as possible. He discussed the increase in operational costs resulting from rising costs of chemicals,energy required to maintain this level of treatment, and disposal of biosolids. He requested direction on whether to explore savings options. Director Cavecche directed Mr. Herberg to bring to the OMTS Committee a full plan to 2012, outlining cost savings as well as any possible impacts that cutting back on the level of treatment would have on the environment and rate payers. Minutes of the Steering Committee Page 3 November 16, 2005 (7) REPORT OF GENERAL COUNSEL General Counsel Brad Hogin provided a brief update on the State Water Resources Control Board's upcoming statewide requirements for wastewater collection systems. He stressed the importance of system owners to have affirmative defense language and to participate in the upcoming public comment period. CASA, SCAP and OCSD staff are also following and participating in this activity. The State Board may adopt the new requirements in January. (8) DISCUSSION ITEMS(Items A-F) A. California State Assembly Bill 1234 Dr. Ghirelli provided an update on Assembly Bill 1234. Staff will be working with California Special Districts Association(CSDA)and CASA to develop a program that will comply with the new required ethics training, and eliminate training that is provided through Directors' cities. B. Reimbursement Agreement for City of Placentia Directors concurred that the General Manager's recommendation for a five-year pilot project to provide assistance to the City in improving their sewer system managements program would be of mutual benefit. A reimbursement agreement, in a form acceptable to General Counsel,will be developed.The item will be brought to the December OMTS for action. C. AERA Master Planned Community Equivalent Annexation Fees David Ludwin introduced George Basye,AERA Energy,and Tom Dawes, consultant to AERA Energy. Both he and Jim Burror provided additional information requested by Directors at the prior Steering Committee meeting on sewer rapacity in the project area and explained the nexus between the annexation fees and Sanitation District costs. The golf course lands playable areas are now included in the initial annexation fee payment estimate. Staff was directed to(1)prepare an Out of Service Area Sewer Service Agreement for the AERA Master Planned Community Development deferring payment of annexation fees for natural open spaces until they are developed, and (2)propose revisions to Ordinance No. OCSD 21 to cover the concept and allow the collection of these fees for out-of-area sewerage service agreements, and bring to the FAHR and Steering Committees. D. Legislative Consultant Contracts After brief discussion, staff was directed to pull this item to provide additional information and bring it to the December Steering and Board. Directors requested a listing of consultants' accomplishments for 2005 as well as specific goals for 2006, and suggested that members meet with lobbyists next year to brain storm the following years goals. Directors also requested reports for the weekly Legislative Advocacy teleconference meetings. E. The Agenda Items scheduled to be reviewed by the Board's working committees in December were reviewed. Minutes of the Steering Committee Page 4 November 16, 2005 F. 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 David Ludwin said the December 15 CIP Oversight Ad Hoc Committee workshop will provide information to Committee members on all of the CIP projects, construction costs, and their effects on user rates and COP borrowing, as well as future planning efforts by staff, to facilitate discussion with the Board regarding the capital program budget. Director Miller requested staff include"what if" scenarios in the workshop to gain understanding of how individual projects affect rates and borrowing General Counsel advised that the CIP Oversight Committee is a standing committee and should be identified as such. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION ANDIOR STAFF REPORT There were none. (12) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, December 21, 2005 at 5 p.m. The next Board Meeting is scheduled for Wednesday, December 21, 2005 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:20 p.m, in Closed Session, pursuant to Section 54957(B)(1), to discuss appointment of interim General Manager position. 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 6:25 p.m.,the Committee reconvened in regular session. (14) ADJOURNMENT Minutes of the Steering Committee Page 5 November 16, 2005 The Chair declared the meeting adjourned at 6:25 p.m. Submitted �by: � ` . �- l_w lAM_ Gail Garrett Steering Committee Secretary N WryM WjeMal$Ixmp CpmMlx'MSC AlnWas hm.S.Ox 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 held on Wednesday, November 16, 2005, was duly posted for public inspection in the main lobby of the District's offices on Thursday, November 9, 2005. IN WITNESS WHEREOF, I have hereunto set my hand this 16th day of November, 2005. Pe Any Kyle, Secretary of he Board of Directors of Orange County Sanitation District Posted: —November 9 2005 12:00 .m. By: L 0 Signature wg gm%ly mm�frog im 4 ORANGE COUNTY SANITATION DISTRICT •"o"; t714)962-2411 f•.: t714)962d 55 .p.s.pJ.pm .coBox 8127 NOTICE OF MEETING Fpman valf,G OF THE 92728-8127 STEERING COMMITTEE 10844 ells Avenue F° "` 2 05-7 p1 27p8-70 9 18 ORANGE COUNTY SANITATION DISTRICT Momb•r Amootoo WEDNESDAY, November 16, 2005 - 5 P.M. • CIHn Ananaim DISTRICT'S ADMINISTRATIVE OFFICE Baas Pot« 10844 ELLIS AVENUE GYP"'. FOUNTAIN VALLEY, CALIFORNIA 92708 Fountain Van, Fullerton Garden Grove Hununymn beech .vine La Habra La valeta A regular meeting of the Steering Committee of the Board of Directors of Las Alamltoa Hewaort eaach Orange a County Sanitation District will be held at the above location, date and tkan98 time. Ae eM.Same Ana Seal Beech STanwn Talaln oil. art YaMe Lintle : uaq of Crony. plpry wrtrl.s• roe Mesa MiaWaY CXY wept Cl.viee• Irvine Ranch HAdeptlagendMsteenng Commidee12005\sc Meehng Notice Form.t.doc 7a maintain worlacle..leadership in wastewater any water resource management. STEERING COMMITTEE AND BOARD MEETING DATES FOR THE NEXT TWELVE MONTHS 'Wednesday, November 16, 2005 'Wednesday, December21, 2005 Wednesday, January 25, 2006 Wednesday, February 22, 2006 Wednesday, March 22, 2006 Wednesday, April 26, 2006 Wednesday, May 24, 2006 Wednesday, June 28, 2006 Wednesday, July 26, 2006 Wednesday, August 23, 2006 Wednesday, September 27, 2006 Wednesday, October 25, 2006 *Wednesday, November 15, 2006 'Wednesday, December 20, 2006 `Tentatively rescheduled from regular fourth Wednesday. H:Wephagenda4Sl edng CammifleekNWeebng Dates Fo .Zdm STEERING COMMITTEE (1) Roll Call: Meeting Date: November 16, 2005 Meeting Time: 5:00 p.m. Meeting Adjourned: p.m. Committee Members Steve Anderson, Board Chair.............................................. Jim Ferryman, Board Vice Chair.......................................... Darryl Miller, FAHR Committee Chair.................................. Carolyn Cavecche, OMTS Committee Chair........................— Tod Ridgeway, PDC Committee Chair................................. Jim Silva, Supervisor........................................................... Others Brad Hogin, General Counsel Don Hughes Senator John Campbell Scott Baugh Eric Sapirstein Staff Present Robert P. Ghirelli,Acting General Manager Nick Arhontes, Director of Regional Assets&Services Jim Herberg, Director of Operations & Maintenance David Ludwin, Director of Engineering Patrick Miles, Director of Information Technology Lisa Tomko, Director of Human Resources Lorenzo Tyner, Director of Finance/Treasurer Gail Garrett, Committee Secretary Other Staff Present Jennifer Cabral, Senior Public Information Specialist Jim Colston, Legal & Regulatory Affairs Liaison Layne Baroldi, Legal & Regulatory Affairs Liaison Sonja Morgan, Principal Public Information Specialist Karen Baroldi, Senior Environmental Specialist Jim Buror, Engineering Supervisor c: Lenora Crane H:bepUgendalSteenng Cpmmiheet20051 I%Rall Call Sheel Fonn.3.dm AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, NOVEMBER 16, 2005 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 Rem are available for public inspection in the office of the Board Secretary. Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or because there is a need to take immediate action,which need came to the attention of the Committee subsequent to the posting of agenda,or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations,please contact the Orange County Sanitation District Board Secretary's office at(714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Items Continued: Items maybe continued from this meeting without further notice foe Committee meeting held within five (5)days of this meeting per Government Code Section 54954.2(b)(3). Meetino Adioumment: 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 Book Page I -2- November 16, 2005 Agenda 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 A. Approve draft minutes of the October 26, 2005 Steering Committee meeting. B. Approve draft minutes of the October 28, 2005 Special Steering Committee meeting (5) REPORT OF COMMITTEE CHAIR (6) REPORT OF GENERAL MANAGER A. Level of Treatment and Operating Costs (Herberg) B. Update on the Prado Biosolids project (7) REPORT OF GENERAL COUNSEL (8) DISCUSSION ITEMS (Items A-F) A. California State Assembly Bill 1234 (Tomko) B. Reimbursement Agreement for City of Placentia (Arhonles) C. AERA Master Planned Community Equivalent Annexation Fees (Ludwin) D. Legislative Consultant Contracts (Ghirelli) E. Review Agenda Items scheduled to be presented to Committees in November (Information item only) F. Review and consideration of Agenda Items for Board of Directors Meeting of November 16, 2005 (9) OTHER BUSINESS COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT Book Page 2 -3. November 16, 2005 Agenda (12) FUTURE MEETING DATES The next Steering Committee Meeting is scheduled for 5 p.m., Wednesday, November 16, 2005. The next Board Meeting is scheduled for 7 p.m., Wednesday, November 16, 2005. (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. Consider appointment of interim General Manager position. Government Code 54957(B)(1). B. Reconvene in regular session 1. Consider compensation for interim General Manager position. C. Consideration of action, if any, on matters considered in closed session. (14) ADJOURNMENT 99 HWEPMGENDAWLEERING COMMI=EF %GENDA FORM 4.DOC Book Page 3 -4- November 16, 2005 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: Steve Anderson (562)905-9700(La Habra City Hall) Committee Staff Contact: Robert P.Ghirelli (714)593-7400 General Counsel: Brad Hogin (714)564-2606 Committee Secretary: Gail Garrett (714)593-7101 (714)962-0356 (Fax) E-mail: ggarrett@omd.com Book Page 4 DRAFT ICI LUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, October 26, 2005, at 5 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, October 26, 2005 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: STAFF PRESENT: Directors Present: Bob Ghirelli, Acting General Manager Steve Anderson, Chair Nick Arhontes, Director of Regional Services and Jim Ferryman,Vice Chair Assets Carolyn Cavecche, Chair, OMTS Committee David Ludwin, Director of Engineering Darryl Miller, Chairman, FAHR Committee Lorenzo Tyner, Director of Finance/Treasurer Tod Ridgeway, Chairman, PDC Committee Lisa Tomko, Director of Human Resources Lou Correa, County Supervisor Gail Garrett, Committee Secretary Sonja Morgan, Principal Public Information Directors Absent: Specialist Jim Silva, County Supervisor Karen Baroldi, Senior Environmental Specialist Jeff Reed, Human Resources Manager OTHERS PRESENT: Jim Burror, Engineering Supervisor Bradley R. Hogin, General Counsel John Linder, Engineering Manager Director Doug Davert Adam Nazaroff,Associate Engineer Director Phil Luebben Ryal Wheeler, Maintenance Supervisor Director Mark Waldman Don Hughes Eric Sapirstein, ENS Resources John Freshman, Freshman and Kest Scott Baugh, Mayer Brown Rowe and Maw(via teleconference) Christopher Townsend,Townsend &Associates (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no comments by any member of the public. Book Page 5 Minutes of the Steering Committee Page 2 October 26, 2005 (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the September 28, 2005 Steering Committee meeting were approved as amended. (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Steve Anderson announced David Shawver will be representing the City of Stanton on the OCSD Board. Director Bankhead has been appointed Vice Chair of OMTS. Director Hardy has also been appointed to OMITS. Chair Anderson announced future meetings, noting that the Steering and Board meetings for November and December will be held on the third Wednesdays due to the upcoming holidays. Dr. Ghirelli introduced the legislative consultants for the Sanitation District: Eric Sapirstein, ENS Resources; John Freshman, Freshman and Kast; Chris Townsend, Townsend Public Affairs; and Scott Baugh, Mayer, Brown, Rowe & Maw,who participated via teleconference. (6) REPORT OF THE GENERAL MANAGER Acting General Manager Robert Ghirelli gave an update on the relocation of the SARI line. The parties involved in the relocation project are OCSD, SAWPA, County of Orange and the Army Corps of Engineers. The General Managers met two weeks ago and concluded that a southerly alignment of the pipe along the 91 Freeway would incur the lowest costs and least environmental impact. This will be the preferred alternative in the EIRIEIS which will be published by the end of the year and completed by April 2006. Dr. Ghirelli said that funding of the project is an issue. The County has funds for the design, but not for the entire project which is estimated at$70 million. OCSD and SAWPA will draft an agreement for sharing the cost of the project,with the understanding that the Sanitation District will eventually receive compensation from the County. Efforts to obtain federal and state funds will also be made. A tour of the SARI line location is scheduled for tomorrow, October 27 for Board members, lobbyists, and representatives from Congressman Gary Millers office. (7) REPORT OF GENERAL COUNSEL General Counsel Brad Hogin said that AB1234,which governs Directors compensation, has been passed. The Sanitation District has written policies in place and General Counsel will verify that our policies are in compliance. Dr. Ghirelli informed that an agenda report for AB1234 will be presented to the Steering Committee in November. Book Page 6 Minutes of the Steering Committee Page 3 October 26, 2005 (8) DISCUSSION ITEMS (Items A-G) A. State and Federal Legislative Advocacy Update: and B. Legislative Agenda—2006 Legislative Session The Sanitation District's federal legislative consultants, Eric Sapirstein and John Freshman, updated the committee on their activities for the past year and their plans for 2006. Their focus is on acquisition of federal funding for secondary treatment expansion through State and Tribal Assistance Grant(STAG)and Water resources Development Act(WRDA)appropriations. They continue to build support with the Orange County and California delegation in Washington and will continue to focus on secondary treatment funding as well as funding alternatives for the SARI line. The Senate Committee on Environment Public Works has approved a bill in which they included a High Priority Infrastructure Water Quality Projects section,with $300 million a year available for grant assistance for communities that meet the high priority eligibility. Scott Baugh reported on the state legislative initiatives and his activities in the areas of biosolids. His priority this year will be to monitor and actively participate in legislative activities relating to two-year bills, including SB 120(Florez)Water Quality; SB 926 (Florez) Sewage Sludge Management; and, HR 18 (Baca) SC Groundwater Remediation Act. Christopher Townsend and his firm are focused on acquisition of state funding for District projects including Santa Ana River Interceptor line and other projects through Propositions 40 and 50 and other grant sources. He indicated that all of the Proposition 50 money has been given to the Department of Water Resources for distribution. California Senator Dean Florez will tour OCSD on December 2. Scott Baugh will invite California Senator Campbell to the November 16 Steering Committee. MOVED, SECONDED AND DULY CARRIED: Direct staff to bring to the Board of Directors a revised authorization such that each contract is renewable for one- year periods at the discretion of the Steering Committee. Directors requested staff include more specifics in the draft Annual Legislative Agenda. Staff will send the draft Annual Legislative Agenda to the Steering Committee for comments. MOVED, SECONDED AND DULY CARRIED: that the Legislative Agenda 2006 be approved as a draft,with additional clarification to be sent to the Steering Committee by fax for comments. Book Page 7 Minutes of the Steering Committee Page 4 October 26, 2005 C. AERA Master Planned Community Equivalent Annexation Fees Jim Burror provided a handout of the proposed service area, reported on the proposed AERA project, and sought direction from the Committee on how to assess annexation fees. The property owner,AERA Energy, has requested several exclusions from the applicable Equivalent Annexation Fees, one of which is land that is designated for use as a golf course. The Committee tabled the matter because of issues that need to be explored and evaluated. Ordinance No. OCSD-21 requires us to charge by acre. General Counsel will look into whether Ordinance No. OCSD-21 should be amended for clarification should the Steering committee and Board consider excluding the restricted property. Staff was directed to present the Committee with a full report which would explain the developer's drainage plans, include the golf course in the annexation fees, provide a description of sewer capacity in the area, explain the nexus between the annexation fee and the development costs, and describe proposed amendments to Ordinance No. OCSD-21. D. Huntington Beach New Lift Station "D"and Related Sewers Nick Arhontes reported that the City of Huntington Beach has formally requested that OCSD take over the new Gravity Pump Station and related sewers. Staff has not conducted a review of the plans and specifications of the pump station and is not in an informed position re maintainability and cost factors. Several alternatives were discussed and staff was directed to take no action at present and monitor the first five years of the operation. E. Request for Reporting Chances Dr. Ghirelli informed that, in response to Chair Anderson's request, the Public Affairs department researched outside reporting methods to the Board. Sonja Morgan said the requests for monthly news clippings, monthly board member request summary, and State and Federal legislation updates can be implemented at once with minimal additional staff time. On the other hand,policies and procedures must be put in place for preparing an Outreach Calendar and Travel summary since this would involve numerous staff members throughout the divisions. F. The Agenda Items scheduled to be reviewed by the Board's working committees in November were reviewed. G. 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 Rook Pago 8 Minutes of the Steering Committee Page 5 October 26, 2005 There were none. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (12) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, November 16, 2005 at 5 p.m. The next Board Meeting is scheduled for Wednesday, November 16, 2005 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:30 p.m. in Closed Session, pursuant to Section 54956.9 and 54957, to discuss three matters. 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 7:00 p.m., the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 7:00 p.m. Submitted by: Gail Garrett Steering Committee Secretary GN.xu M ma5etlugSOTLLotal 5el4npS%T ryJMMO FNSWLK7Bli02 SCM1 sO nf.M Book Page 9 DRAFT MINUTES OF STEERING COMMITTEE SPECIAL MEETING Orange County Sanitation District Friday, October 28, 2005, at 2 p.m. A special meeting of the Steering Committee of the Orange County Sanitation District was held on Friday, October 28, 2005 at 2:10 p.m., in the Districts Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: Darryl Miller, Chairman, FAHR Committee Directors Present: Steve Anderson, Chair OTHERS PRESENT: Jim Ferryman, Vice Chair Bradley R. Hogin, General Counsel Carolyn Cavecche, Chair, OMTS Committee Tod Ridgeway, Chairman, PDC Committee STAFF PRESENT: Jim Silva, County Supervisor Penny Kyle, Board Secretary Directors Absent: (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no comments. (4) REPORT OF THE COMMITTEE CHAIR Committee Chair Steve Anderson did not have a report. (5) REPORT OF THE GENERAL COUNSEL General Counsel Brad Hogin did not have a report. (6) DISCUSSION ITEMS A. Consider retention of search firm to identify candidates for interim General Manager position. Book Page II Minutes of the Steering Committee Page 2 October 28, 2005 Directors entered into discussion regarding the retention of a search firm for the recruitment of a general manager. They also discussed the appointment of an interim General Manager. (7) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (8) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (9) FUTURE MEETING DATES The next Steering Committee Meeting is scheduled for 5 p.m.,Wednesday, November 16, 2005. The next Board Meeting is scheduled for 7 p.m.,Wednesday, November 16,2005. (10) CLOSED SESSION The Committee convened at 2:17 p.m. in Closed Session, pursuant to Section 54956.9 and 54957, to discuss one matter. 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 2:54 p.m., the Committee reconvened in regular session. (11) ADJOURNMENT The Chair declared the meeting adjourned at 2:54 p.m. Submitted by: Penny M. Kyle Board Secretary naavvem.werva cmN.nwia�tcwwear s.ac Book Page 12 STEERING COMMITTEE Meeting Date To BA.of Dir. 11/16/05 AGENDA REPORT Item Number I 1emNumber B(a) Orange County Sanitation District FROM: Lisa Tomko, Director of Human Resources Originator: Sonja Wassgren Morgan SUBJECT: California State Assembly Bill 1234 GENERAL MANAGER'S RECOMMENDATION For information only SUMMARY Assembly Bill (AB) 1234 was introduced by Assemblyman Simon Salinas in February 2005 following media reports about abuses of compensation and reimbursement policies by local water district boards throughout the State of California. At the end of August 2005, both houses of the State Legislature approved AB 1234, which imposes ethics training, compensation, and reimbursement regulations on cities, counties, and special districts. The governor signed the bill into law in September. AB 1234 imposes ethics training requirements on"local agency officials", which are defined as: Members of the legislative body who receive any type of compensation, salary or stipend; or Any employee designated to take ethics courses by the legislative body. AB 1234 requires local agency officials to receive no less than two hours of training in general ethics principles and ethics laws every two years. The bill allows local agency officials to fulfill this requirement by taking courses developed in consultation with the Fair Political Practices Commission and the Attorney General. Officials whose terms end before January 1 2007: Local agency officials whose terms end before January 1, 2007 are exempted from the ethics training requirement. Officials' currently serving whose term expires after January 1 2007: a. Are required to obtain two hours of ethics training no later than January 1, 2007. b. Thereafter, each local agency official is required to complete two hours of ethics training every two years. Officials' currently serving whose term begins on or after January 1 20067 a. Required to fulfill two hours of ethics training within one year of taking office. b. Subsequently, these officials will be required to complete two hours of training every two years. Ethics Training H:WPINgmdaZiaOngC iteel2aosm11lW5 So e(e)ARAe 1Y 10 192N5.me ae�n.d: 11MMS Page 1 Book Page 13 Ethics Training Legislation requires the Attorney General and the Fair Political Practices Commission (FPPC)to be consulted regarding the "sufficiency and accuracy' of any curriculum developed by a local agency to satisfy the ethics training requirement. AS 1234 would allow one or more training courses, or sets of self-study materials with tests, and it provides that training could be taken at home, in person or on-line. Written records demonstrating that a local official completed the training are to be maintained as public records for at least five years. Meetings Travel. Lodging and Meal Reimbursements AB 1234 also places certain limitations on how members of legislative bodies may be compensated for attending meetings and reimbursed for travel, lodging, and meals. (Our preliminary analysis leads us to believe that the District's current policy and practice meet these limits.) Meeting Compensation Under the bill, a local agency is only authorized to compensate its legislative body members for attending the following: a. meetings of the governing board, b. meetings of advisory bodies, and c. conferences The local agency is prohibited from providing compensation for attending other types of meetings unless those meeting are included within a written policy adopted by its legislative body. (Our preliminary analysis leads us to believe that the District's current policy and practice meet this requirement.) Travel. Lodging and Meal Reimbursements AB 1234 also restricts the manner in which legislative body members are reimbursed for travel, lodging, and meal expenses. Specifically, AB 1234 provides that"if a local agency reimburses its legislative body members for actual and necessary expenses incurred in the performance of official duties,"then the local agency is required to adopt a written policy specifying the types of occurrences (e.g. conferences) that qualify a legislative body member for reimbursement of expenses relating to travel, meals, lodging, and other actual and necessary expenses. (Our preliminary analysis leads us to believe that the District's current policy and practice meet this requirement.) AB 1234 would also require legislative body members seeking reimbursement for travel, lodging, and meals to file an expense report, as well as make an oral report on the meeting or conference attended. Each expense report would become a public record subject to the Public Records Act. (While we currently require an expansive report, we currently do not require an oral report. We are looking into a suitable protocol and need feedback from the Steering Committee.) PRIOR COMMITTEEIBOARD ACTIONS None HMepMpebBlRWnpC QN120]5111 IIW5 SC 0(8)ARM 12U 1013M.E RMneO: IWO05 Page 2 Book Page 14 PROJECT/CONTRACT COST SUMMARY BUDGETIMPACT ❑ This item has been budgeted. (Line item: Salaries and Wages) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION Staff will be working with California Special Districts Association (CSDA) and California Association of Sanitation Agencies (CASA)to develop our program to comply with AB1234 requirements. CSDA is already preparing for the new required ethics training and will offer low-cost, regional workshops to assist special district directors and trustees in complying with this new requirement. An experienced group of special district leaders and attorneys are working to develop a two-hour ethics curriculum that not only ensures compliance with this new law, but provides attendees with an exceptional learning experience that doesn't just involve reciting the law. The CSDA workshop participants will also receive a draft district policy that will specify, as required by AS 1234: • The types of occasions that constitute the performance of official duties for which a member of the legislative body may receive payment, outside of those detailed in the bill; • The types of occurrences that qualify a member of the legislative body to receive reimbursement of expenses relating to travel, meals, lodging, and other actual and necessary expenses; and • Reasonable reimbursement rates for travel, meals, and lodging, and other actual and necessary expenses (the alternative to using IRS rates as established in Publication 463). The draft policy can work as a template for agencies to use to comply with this new mandate. In addition to the two-hour workshops, CSDA will also be offering alternative educational options as detailed in the legislation. ALTERNATIVES CEQA FINDINGS N/A ATTACHMENTS AB 1234 Fact Sheet developed by California Special Districts Association AB 1234 Text AS 1234 - IRS 463 Publication N:Way,Naa^QaalMnp ConvXlla•�OaSlt,t tteoS SC aryl MQ 1Y lO 13=5• ftw..: nnrmaa Page 3 Book Page 15 No I[IIIIIIIIIMM mmmm AB 1234 Connoliance Fact Sheet r'errerel Compliance Summer : 1— Your district needs a written policy to compensate board members foraftendance at events beyond just board meetings, committee meetings and conferences. 2— Your district needs a written policy to reimburse board membersWax rises. 3— Yourdistrict needs to use IRS reimbursement rates oradopt a written policy that specifies reasonable reknbumement rates. 4— Yourdistrid needs to provide expense report forms to board members who require reimbursement and must keep completed forms on rile as public documents. If your district provides any compensation orraimbumement to any board member 5—All board members and any boand-designated employees need to take at least two hours of ethics training at least every two years and receive a certficate of completion. 6—For board members in service on 111106, the first training needs to be completed by 1/1rn7, and new board members need to complete the training within one year of taking office. 7— Your district must keep records indicating when board members completed the training and who provided the training for five years. Compensation Dotal]: If your district's enabling codes authorize compensating your board members,your district can pay that Compensation to them for attendance at board meetings,committee or other advisory body meetings and conferences and other organized educational activities, such as ethics training.To pay compensation for occurrences other than these,the board must adopt a written policy in an open meeting that specifies other types of occasions that constitute the performance of official duties for which board members can receive payment. However, if your district is authorized to and does pay a salary to board members,then this paragraph doesn't apply to your district If your district's enabling codes authorize reimbursement,the board must adopt a written policy in a public meeting that specifies the types of occurences that qualify a board member to receive reimbursement for travel, meals, lodging and other actual and necessary expenses. If the policy does not specify the reasonable reimbursement rates,the agency will use the IRS rates,which are established in Publication 463.Board members have to use government rates and group rates for transportation and lodging when available.If the lodging is in connection with a conference or other seminar, like ethics training,the lodging costs cannot exceed the group rate published by the event sponsor. If the group rate is not available at the time of booking, the board member is to use comparable lodging that doesn't exceed the district's policy or IRS rates,whichever apply.Any expenses that do not fall within the district's policy or the IRS rates have to be approved by the board in a public meeting before the expense is incurred. If your district reimburses board members for expenses,the district has to provide expense report forms for the board members to file.The expense reports have to document that expenses meet the district's polity, have to be filed within a reasonable time after incurring the expense,and must be accompanied by receipts that document each expense.Also, board members have to provide brief reports on meetings that they have attended at the district's expense at the next regular board meeting.All of the documents related to reimbursements are public records and are subject to the California Public Records Act. If you misuse public resources of falsity expense reports in violation of expense reporting policies,the penalties may include, but are not limited to,the loss of reimbursement privileges, restitution to the district, civil penalties for misuse of public resources($1000/day of infraction plus three times the value of 02005 California Special Districts Association(CSDA) AS 1234 Compliance Fact Sheet Book Page 17 the unlawful uae;Govt Code Section 8314)and prosecution for misuse of public resources(2,3 or 4 years in state prison and disqualification from holding office in Califomia; Penal Code Section 424). Ethics Training Detail: If your district provides any type of compensation, salary or stipend to any board member or provides expense reimbursement,then all board members need to take training on ethics laws,as do any employees the board designates.The ethics training needs to be at least two hours every two Years,and each participant needs to be provided with proof of participation.Any entity that develops an ethos training course may include local ethics policies in the curricula,and needs 10 consult the FPPC and the Attorney General regarding the sufficiency and accuracy of any proposed course content.An agency or association can offer courses or self-study materials with tests;the courses can be taken at home,in person or online.Your distnct needs to provide information on available ethics training to board members at least once per year. All board members whose districts provide reimbursement or compensation and who are in service as of January 1,2006 need to be trained in ethics by January 1,2007 unless their term of office ends before then.All new board members(after January 1,2006)need to take their first ethics training no later than one year from their first day of service with the district. If board members serve with more than one local agency,they still only need the training once every two years. Districts that require board members to complete ethical training need to maintain records that indicate the dates that board members completed the training and the entity that provided the training.The district has to keep these records for at least five years after the officials receive the training. Of course, they are public records subject to the California Public Records Act. The'ethics laws'concerned here include, but are not limited to,laws relating to personal financial gain (bribery,conflict-of-interest), claiming prerequisites of office(gifts,travel,public resources,gift of public funds),government transparency(financial interest disclosure, Brown Act)and fair process(common law bias, due process, incompatible office,competitive bidding for public contracts, revision from decisions affecting family). Should you have any questions regarding AB 1234 or any other legislative matter,please contact the CSDA office toll-free at 877/924-CSDA. ©2005 California Special Districts Assoclation (CSDA) AS 1234 Compliance Fact Sheet Book Page 18 STEERING COMMITTEE Meeting oa(e To ad.of Dir. 11,16,05 AGENDA REPORT Item NumberNumber Iten Orange County Sanitation District FROM: Nick Arhontes, Director of Regional Assets and Services Department SUBJECT: REIMBURSEMENT AGREEMENT WITH THE CITY OF PLACENTIA GENERAL MANAGER'S RECOMMENDATION Approve a Reimbursement Agreement with the City of Placentia for a five-year pilot project to assist the city in improving their sewer system management program and operations and maintenance, to achieve improved compliance with the Regional Water Quality Control Board's Waste Discharge Requirements Order (WDR), in a form acceptable to the General Counsel. SUMMARY The city has defined a need to seek assistance from Regional Assets and Services (RA&S) staff on a limited basis to improve their forward O&M program. City staff is improving their sewer system O&M and management program to achieve improved compliance with the Regional Board's Waste Discharge Requirements Order (WDR). City of Placentia and OCSD staff recommend a five-year pilot project which would best meet both agencies' needs and current staffing levels. Time spent by selected experienced RA&S staff, excluding the Director, would be invoiced at timesheet hourly rates. OCSD can assist city staff with various support services. A suggested list is provided in the Additional Information section below. Public infrastructure assets owned by Placentia will not be directly managed by OCSD staff nor will any assets be transferred to OCSD ownership. OCSD will not be providing Professional Engineering services as the city will work with their existing or new consultants. We see this as an important first step in working with a satellite agency in greater detail in order to seek improved operational and business efficiencies. This will also assist both agencies in mid and long range staff succession planning efforts by providing knowledge transfer and future skill sets needed. The technical scope of work and pilot project management will be overseen by the city Public Works Director and the Director of RA&S. Reporting on actions taken and services provided will be done through the RA&S monthly report to the OMTS Committee. PRIOR COMMITTEE/BOARD ACTIONS None „wroHo.mw«mo eaimmeuoosm,„ms se ae,na m wcmu re>neuew,.n.aoc erwa:aawua Page 1 Book Page 19 PROJECT/CONTRACT COST SUMMARY A project cost accounting system will be implemented by the RA&S Principal Financial Analyst and the Finance Department using existing systems. 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 OCSD will assist the City in ensuring that the operation and maintenance of its sanitary collection system is efficient and adequately addresses the actual needs of the system as well as remaining compliant with the WDR. The City is embarking upon a shared resource pilot project with OCSD. Under this pilot project, OCSD will make available resources to the City, on an as needed basis, to assist the City with its selection of contractors, maintenance, rehabilitation and repair specifications, pipeline inspections and evaluations, program development, operator training, development of short and long term CIP projects, budget requirements, and other assistance as needed by the City. To assist in the endeavor, the City proposes to enter into a 5-year shared resource pilot project with OCSD. This project will allow the City access to maintenance expertise and other resources of OCSD on an actual cost basis. OCSD will provide training for City employees to assist them in performing field inspections and evaluations of the line cleaning contractor's performance. OCSD will also assist the City in evaluating the collection system's condition based upon the CCTV data. The City will also be afforded the right to utilize OCSD's RFPs, bids, and other administrative documentation to assist in negotiating with line cleaning and other contractors at the City's direct expense. The City feels this project will offer the City quality expertise in developing and maintaining an effective and efficient preventive maintenance program to meet the specific needs of the City's collection system. City of Placentia's staff driven Operation and Maintenance ("O&M") program includes, without limitation, the following elements where OCSD staff could possibly assist the City's staff: • Comprehensive annual cleaning of the entire system; • CCTV inspection of selected portions of the system; • Inspection and plotting of all manholes; • Verification and/or modification of the CITY's atlas maps and asset records; M bed`apMea451emna Ca 1l-t 5111111 teas sc 60)Lit on Recenea,WMw.W. RenseG'. O6D1N3 Page 2 Book Page 20 • Determination and identification of all CITY-owned pipelines; • Evaluation and cleaning of collection system "hot spots;" • Determination of emergency response procedures for sanitary sewer overflows ("SSOS"); • Development of an accurate condition assessment of the system in order to update the CITY's Capital Improvement Program ("CIP"), identify high priority projects, pinpoint maintenance needs, and provide more accurate maintenance costs; • Development of a prioritization list of recommended CIP projects; • Development of an annual work plan with operating budge recommendations for the adequate operation and maintenance of the sanitary sewer collection system; and, • CITY's acquisition, implementation, operation, and maintenance of an electronic recordkeeping system. ALTERNATIVES None CEQA FINDINGS Not applicable ATTACHMENTS None HAdepAagenda4Steedng CommideeV005MI02505 SC 8(f)AR on Placentia relmbumenlentdoc H:WPIWGvNa dno gomr,U 0051111111M SC e(b)AR On RWN , MUMalre A= Re.l..a:o 3 Page 3 Book Page 21 STEERING COMMITTEE MeeOng Date To ad.of Dlr. 11/16/05 AGENDA REPORT Item Number Item Number 8(c) Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Jim Burror, Engineering Supervisor SUBJECT: AERA MASTER PLANNED COMMUNITY EQUIVALENT ANNEXATION FEES GENERAL MANAGER'S RECOMMENDATION Direct staff to prepare an Out of Service Area Sewer Service Agreement for the AERA Master Planned Community Development that defers payment of annexation fees for natural open spaces until they are developed, in a form approved by General Counsel. SUMMARY • The proposed 3,000 acre AERA Master Planned Community Development (Development) project site lies within unincorporated Los Angeles and Orange Counties. Approximately 90 percent of this Project is located within Los Angeles County. The Development will create 3,600 residential units, public parks, a golf course, and open space preserve within their site. The Development is adjacent to the communities of Rowland Heights, La Habra Heights, Diamond Bar, and Brea. • The Orange County Sanitation District (Sanitation District) staff must prepare an Out of Service Area Sewer Service Agreement (Agreement)for the Los Angeles County portion of the Development. • The Steering Committee reviewed this item in October 2005 and requested additional information on the following: • Sewer capacity in the project area. • An explanation of the nexus between the annexation fees and Sanitation District costs. • Inclusion of the golf course lands in the initial annexation fee payment. • The Sanitation District staff has determined that sewer capacity exists to serve the Development. The developer will need to construct facilities to connect the Development to either the City of Brea's system or to the Sanitation District's Carbon Canyon Dam Trunk. • The Agreement will designate when and how fees will be paid to the Sanitation District. These fees include equivalent annexation fees, Capital Facilities Capacity Charges, and Annual Sewer Service Charges. The equivalent annexation fees are based on Ordinance No. OCSD-21 and replace the loss of ad valorem property taxes to the State General Fund as a result of State legislative action on September 2, 1992. HMroN6roWl41eMnB LmmY1Me3WS11\It f6p59CBlc1 ARAEM Eneryy Marla Pamtl ComunitY lA CwnIY MAM a�xa oawma Page 1 Book Page 23 • The Sanitation District Annexation Fee includes two types of charges based upon acreage. The first is a $1,235 charge for net current assets in order to place the annexing property on equal historical footing with existing properties. The second is a $3,000 charge that will generate interest income equivalent to the ad valorem property tax allocation from existing properties. For example, here is how fees would be determined for 10 acres: 10 X $1,235 = $12,350 10 X $3,000 = $30,000 _ $42,350 in total annexation fees In other words, this fee is a "buy-in"to the Sanitation District. These fees are collected from all property owners in the Sanitation District regardless of whether or not service was is provided. These fees can be used at the Sanitation District's discretion for operating or capital expenses. • The most recent Agreement for areas outside of Orange County was in August of 2001. This agreement included a provision to defer equivalent annexation fee payments for natural open spaces until the time that they are developed, H ever. • Staff is requesting direction on the deferral from applicable initial equivalent annexation fees of: • Any land that is permanently protected as open space through deed restriction, conservation easement, or similar dedication, and; • Any land designated for use as a flood control or water quality basins that would potentially be operated by a governmental agency that would be exempt from property taxes. • The AERA Energy proposed Development is somewhat unique in that it is comprised of a significant amount of land that will be dedicated to a golf course and open spaces. At this time, the functional portions of the golf course including the driving range, fairways, and greens will not be excluded from the equivalent annexation fees. • The Sanitation District Ordinance No. OCSD-21 does not allow specific areas to be excluded from annexation fees. However, in the past, the Sanitation District has made decisions in which open space areas outside Orange County were excluded from the initial equivalent annexation fee payment. • Open space areas will not utilize sewerage services and are not required by LAFCO to be included in the Agreement. • The goal of OCSD Resolution 99-05 is to avoid septic tanks in developments that may have water quality impacts to Orange County. However, if septic tanks were installed in the future in the open space areas within this proposed Development, the septic tanks could impact Orange County's water quality. This Agreement as proposed would protect Orange County from the installation of septic tanks now and r ona"n•Ha•m aan•wuww.gca,.ne""uFru ueprw•rnm"ecam."vry_utann sx,.cui �•+eaoc nnv.a:osaw Page 2 Book Page 24 in the future for both the developed and open space areas. It is also consistent with Ordinance No. OCSD-21. • The total Annexation Fee is estimated at$12.4 million for the entire 3,000 acre Development. The initial equivalent annexation fee with the revised deferrals is estimated at $6.47 million. The difference is based on approximately 54 percent of the total Development area being proposed as permanent open space preserves. • All other applicable Sanitation District fees, which include Capital Facilities Capacity Charges and Annual Sewer Service Charges, for the Development will not be impacted by this proposed Agreement. PRIOR COMMITTEE/BOARD ACTIONS May 2005— Certification of the Final Environmental Impact Report for Implementation of the Carbon Canyon Dam Sewer Pipeline Project, Contract No. 2-24-1. March 2001 - Out of Service Area Sewer Service Agreement with the City of La Mirada and Centex Homes. The area where annexation fees were required was approximately 52 acres. The area that was left as an open space (approximately 13 acres, 25 percent of the area) contained slope cuts, drainage systems, and access trails. This open space area was included with the annexation fee. August 2001 -Annexation Agreement with Hellman Properties within the City of Seal Beach. This agreement allowed the annexation of 39.15 acres into Sanitation District Service Area Boundaries; 21.8 acres of which were to be kept in wetlands conservation and open space uses, which included a deed restricted oil drilling area. The agreement allowed Hellman Properties not to pay annexation fees on the 21.8 acres. However, fees would be collected on any acreage, that was excluded, when developed in the future. PROJECT/CONTRACT COST SUMMARY None BUDGETIMPACT ❑ This item has been budgeted. (Line Rem: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION The proposed Development is in both Orange County and Los Angeles County. The Orange County portion of this project is within the Sanitation District Service Area Boundaries and does not require any Board of Directors (Board)action for service. HtUOOWAQM d Napot.Wevmw camure MEm l6av Rmv,M cam V_u Lame Se MJM*Svare w.w�: aaaa,m Page 3 Book Page 25 The Los Angeles County portion of the Development is not currently part of any sewering agency that can provide regional sewage collection and treatment. However, this area is included within an area eligible for the Sanitation District regional sewer service via OCSD Resolution 99-05. OCSD Resolution 99-05 identifies four conditions that this Development meets including: • Surface water from the territory would naturally drain into Orange County. • The Sanitation District member agency affected by a proposed service agreement, or the development related thereto, must be consulted, and its input considered, prior to the proposed Agreement being finalized and presented to the Board. The Agreement will be presented to the City of Brea after it has been prepared prior to any Board approval. Sanitation District staff has discussed the potential Agreement with the City of Brea staff and the City's Councilman currently sifting on the Sanitation District's Board of Directors. • A local government agency executes the Agreement providing for sewerage services and for payment of one-time fees equivalent to annexation fees, connection fees, and an administrative charge, and annual fees equivalent to sewer serviced fees, property taxes, and an administrative charge, and any other terms and conditions, all as established by the Board at the time of approval, or as amended from time-to-time, for said service. At this time, Roland Heights Water District is to be designated as the local sewering agency. • The local land use, sewer, or water authority agrees to require connections to the Sanitation District or other sewage treatment systems, and discourage on-site disposal systems. The Board previously reviewed the potential for an Agreement within the Abandonment of the Carbon Canyon Pumping Station Project, Contract 2-24-1, Mitigated Negative Declaration, certified by the Board in accordance to the California Environmental Quality Act (CEQA). The Board's Steering Committee specifically reviewed the proposed Development's area outside of the Sanitation District Service area within Los Angeles County and its impact to Contract 2-24-1 project in May 2005. ALTERNATIVES 1. Direct the Sanitation District staff to prepare an Out of Service Area Sewer Service Agreement for the AERA Master Planned Community Development that includes annexation fees for open spaces, currently estimated at$12.4 million. 2. Direct the Sanitation District staff to prepare an Out of Service Area Sewer Service Agreement for the AERA Master Planned Community Development for only the developed portions of the Development, currently estimated at $6.47 million. This would require a new agreement for sewer service for any excluded open space areas, if they are developed. XbJpmaMpmm pMl Req¢blSlrennpCvmillreMEMFnmcy wua.nanrMC.„rury_W Camry Sl-e p tmeos 05a Page 4 Book Page 26 CEQA FINDINGS AERA Energy will be responsible for all CEQA related work for the Project. ATTACHMENTS 1. Service Area and Project Site Map 2. Estimated Equivalent Annexation Fee Table 3. OCSD Ordinance No. 21 4. Board Agenda Report regarding Ordinance No. 21, dated January 28, 2004 5. Staff Report to the Board regarding Ordinance No. 21, dated December 10, 2003 JB:sa HintglobaPAgenda Draft ReportaGSteedng CommideelAERA Energy Master Planned C=rnunity_LA County Steering AR 102605_WB.dw H1 WbWMaeMa han avgpls\Sl gCc Ua ERA Enegy Mader MannM Cgm IklA Co 9kemp AR 102M WBAw Remee: OMM3 Page 5 Book Page 27 ! OBANC .COUNT �, q L +a Habra Bre ♦♦ qi yP oth \ t + Yorbo Linda �• - " "' i •_i•y ullerto Placentia GCE. - 1 l_y/ •\ p r Buena-Park OgP La' Palma /• U �i Fi..�, i ! .�••f'^ c�. ' +fir •�+Cypress Ana elm 4 2• r •.rrrlc no /+ JJ I V iiillla Park•.,♦ n Y n t Orange / \ OG 'Lros Alomi�to sGarden 6 a j a , •Seal Beach 1 � Santo Ana / �• .W estmin ter Tustin ; .1,. �a. untington Beac "1 Fountain Valley © • \- \•Y lYrriijir Jd •kiZ ii i Ocean s\•y ` �' i•♦••• i .\ Costa Meia �,,,,\ + i ` •♦••� .,\♦ i ffir t Irvine ! .. r ♦•4♦ P4M 3�� nnr t i - Newport Beach � 1/ i + ...�� is '♦. Project Area N W E S AERA Master Planed Community Proposed Project Site Legend ORANGE COUNTY SANITATION DISTRICT ED Cismm Boundary Service Area and Project Site _ Freeways Geographic Information Systems, Engineering Source. 0 5 10 OCSD GIS Dale.Thomas Brothers 2002, Mlles Centel:oe/2005 Book Page 29 ESTIMATED OCSD EQUIVALENT ANNEXATION FEES FOR THE AERA MASTER PLANNED COMMUNITY(') lAnnexation Fee ($ per acre) $ 4,235 Building Pads 829 $ 3,510,392 Engineered Slopes (Internal and External) 297 $ 1,257,795 Parks and Goff Course(**) 173 $ 734,349 Roads 91 $ 384,962 Developable Area within OCSD(***) 138 $ - Total 1,528 $ 6,471,080 Protected OpefiJS A *AAWWO0104 Space kcreagg, 0-LW44 Open Space Preserve 1 1"IY711 i$ 4,IF93 11 2 40:2 Extemal Slopes- Deed Restricted Preserve 1�0 Protected Open Space within OCSD(***) 1 61 $ - Total 1 1,4071 $ 5,957,31 10 ra nd--.Total ems.. s * 3 : M71351-V1 2,4211l This is an estimate of fees only, the final fees will be determined based on the final development plan acreages determined by a CA Licensed Surveyor. This table was developed to provide the OCSD Board additional information while it considers potential annexation fees to be levied under an out of service area agreement. Out of service agreement requirements are outlined in OCSD Resolution 99-05 Open Space includes 150 acre golf course, playable areas only, but not preserve areas Areas within OCSD already are not subject to annexation fees. Book Page 30 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.00SD-03 WHEREAS,the Board of Directors of the Orange County Sanitation District ("District) has previously adopted Ordinance No. OCSD-03, adopting fees, procedures, and policies concerning annexations of territory to the District,which Ordinance is presently in full force and effect; and WHEREAS, for purposes of continued efficiency and effectiveness of the Districts operations, preservation of the public health and safety, and in order to continue the provision of wastewater collection, treatment and disposal services, it is the intent, by adoption of this Ordinance, to continue said procedures and policies in effect, without interruption;and WHEREAS,the Board of Directors of the District has received a management report, including financial needs of the District, and wishes to reaffirm the policy of imposing annexation fees when new territory is annexed to the District,and to adopt findings supporting the amount of the fees adopted pursuant to this Ordinance. The Board of Directors of the Orange County Sanitation District does hereby FIND: A. That a comprehensive 30-year Master Plan of Capital Facilities, entitled "Collection.Treatment and Disposal Facilities Master Plan— 1989", hereinafter referred to as the"Master Plan",which includes detailed financial and engineering reports, was prepared,approved, and adopted by the Boards of Directors of the Predecessor Districts in 1989, setting forth and identifying the required future development of District facilities, including the financial projections for providing sewer service to all properties within the individual service areas of each of the nine Predecessor Districts;and B. That the financial and engineering reports of the Master Plan were made available to the public, both prior to and subsequent to the adoption of the Master Plan, and were subject to noticed public hearings, all in accordance with the provisions of the California Constitution and Government Code Section 66016, and other provisions of law: and C. That the District, in 1997, as part of its maintenance and updating of its Master Plan, undertook a comprehensive evaluation and study of its operational and financial needs for the next 20 years, including a detailed assessment of all types and categories of users;the demands on the system and capacity needs of the system to provide necessary service to the multiple categories of users;the total costs of the existing and future facilities in the system; and alternate methodologies for establishing fair and equitable charges to connect to and gain access to the system. These comprehensive planning, engineering,and financial studies led to the development of an updated Comprehensive Master Plan of Capital Facilities,which was approved and WSBS-TLW:pl:01r20/04:178572 1 Book Page 31 adopted by OCSD Resolution No. 99-21 of the Board of Directors on October 27, 1999; and D. That the properties upon which the fees established by this Ordinance are levied,will, subsequent to payment of an additional Capital Facilities Capacity Charge,to allow the owners to discharge wastewater to the District's collection, treatment and disposal facilities;that the costs of operating and maintaining said facilities have constantly increased due in part to increased regulatory requirements to upgrade the treatment process; and that said costs will exceed the amounts of any ad valorem tax revenues derived from said property; and E. That the District will not receive any tax exchange from said annexed properties because of an agreement with the County of Orange under which there is no tax exchange for newly-annexed property;and F. That the annexation fees established here, are an incident but not a condition of development, payable only on request to receive service by the property owner for the benefit of those persons on the property that use the service. The fees are not an incident of property ownership, nor are they a property-related service having a direct relationship to property ownership. Accordingly, the provisions of California Constitution Article XIIID are not applicable. G. That the annexation fees imposed by authority of this Ordinance do not exceed the estimated amount required to provide access to the sewer service for which the fee is levied, as provided in California Government Code Section 66013; and H. That the fees established by this Ordinance will not necessarily result in an expansion of facilities to provide for growth outside the existing service area. The collection of these annexation fees will not result in any specific project, and will not result in a direct physical change in the environment; and I. That the fees adopted by this Ordinance are established upon a rational basis between the fees charged each property that is annexing, and the service and facilities provided to each annexed property by the District, a portion of which is necessary to replace the loss of ad valorem property taxes to the State General Fund as a result of State legislative action on September 2, 1992, and in subsequent years; and J. That all fees and charges established herein have been approved by the Districts Board of Directors at a noticed public meeting, all in accordance with applicable provisions of law; and K. That the adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act from further environmental assessment pursuant to the provisions of California Public Resources Code Section 21080(b)(8), and 14 California Code of Regulations Section 15273(a). visas-TLw.p101Ree9:17s5/2 2 Book Page 32 NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, does hereby ORDAIN: Section 1: That the purpose of this Ordinance is to establish fees required to be paid by property owners for the annexation of property to the District. Said tees are in lieu of property taxes not allocated to the District while the property was outside of the District,and in lieu of future property tax allocations through a Tax Exchange Agreement. Revenues derived under the provisions of this Ordinance maybe used for the acquisition,construction, and reconstruction of the wastewater collection,treatment and disposal facilities of the District;to repay principal and interest on debt instruments; or to repay federal or state bans issued for the construction and reconstruction for said sewerage facilities, together with costs of administration and provisions for necessary reserves. Section 2: That the proponents of any application for annexation of any territory to the District are requesting that the annexed property become a part of the District's jurisdiction, and that by doing so,they become entitled to receive the benefits of having access to the use of the extensive capital facilities system and to receive the District's service,and shall, as a condition to securing approval of the Board of Directors of the District to such annexation,agree to and comply with the following requirements: A. Payment of all administrative costs incurred by the District in processing the annexation. B. Payment of annexation acreage fees,as follows: Beginning January 1, 20D4,the sum to be paid for annexation of territory to the District for which no tax exchange is negotiated between all affected agencies is hereby fixed: Consolidated Revenue Area Nos. 1-13 $4,235/acre Revenue Area No. 14 N/A C. The annexed territory shall be subject to the terms and conditions of all Ordinances and Resolutions pertaining to fees for connection to the District's facilities and use of said facilities, including but not limited to, industrial discharge permit fees, capital facilities capacity charges, and sewer service user fees. D. The annexed territory shall be annexed into an appropriate local sewering agency, or obtain the written approval of the designated local sewering agency, such as a city, for the purpose of obtaining access to and use of the local sewer system, including pumping stations and force mains, which connects to the District's facilities and system. E. The territory, upon annexation, shall be subject to all ad valorem taxes required for the retirement of the existing and future bonds of the District, and all other applicable ad valorem taxes of the District. Section 3: The General Manager is hereby authorized and directed to establish procedures and fees for processing annexation of territory to the District. Said procedures may include provisions for collection by the District of fees charged by other local and state agencies involved in the annexation process for submittal to said agencies by the District on behalf of the annexation proponent. wsss-Tnwpi:orrzaur:nenz 3 Book Page 33 The District's Staff is hereby directed to provide the proponents of any proposed annexation a copy of procedures and fee schedules established pursuant to the authority of this Section. Section 4: That the Staff be directed to transmit to the Orange County Local Agency Formation Commission a certified copy of this Ordinance. Section 5: If any of the provisions of this Ordinance, or the application to any persons or circumstance are held invalid by order of Court,the remainder of this Ordinance,or the application of such provision to other persons or other circumstances, shall not be affected. Section 6: That the provisions of this Ordinance shall become effective thirty (30) days after adoption and shall apply to all annexations to the District on or after said date. Section 7: That Ordinance No. OCSD-03 is hereby repealed. Section 8: That the Secretary of the Board shall certify to the adoption of this Ordinance and shall cause a summary to be published in a newspaper of general circulation as required by law. PASSED AND ADOPTED by the affirmative vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a regular meeting held January 28, 2004. Chair, Board of Directors Orange County Sanitation District ATTEST: Secretary, Board of Directors Orange County Sanitation District THOMAS L. WOODRUFF GENERAL COUNSEL w5 dS-R W:pf 01 r4M:1785T1 4 Book Page 34 BOARD OF DIRECTORS Meeting Date To m.ormr. tnarga AGENDA REPORT item Number Item Numhe 2z Orange County Sanitation District FROM: Gary G. Streed, Director of Finance SUBJECT: FEES FOR PROPERTIES ANNEXING TO THE DISTRICT GENERAL MANAGER'S RECOMMENDATION Adopt Ordinance No. OCSD-21, adopting fees, procedures and policies concerning annexation of properties to the District and repealing Ordinance No. OCSD-03. SUMMARY The current Ordinance governing annexations was adopted in 1998 and needs to be updated. It contains different rates for each of the old Revenue Areas and a includes prior adjustments based upon cost of living changes. A new Ordinance has been prepared in accordance with the attached staff report. The proposed annexation fee includes two types of charges, based upon acreage. The first is a $1,235 charge for net current assets in order to place the annexing property on equal historical footing with existing properties. The second is a $3,000 charge that will generate interest income equivalent to the property tax allocation from existing properties. In addition to this total of$4,235 per acre, annexing properties will pay the appropriate capital facilities capacity charge (CFCC). PRIOR COMMITTEE/BOARD ACTIONS The last Board action related to annexation fees was during the consolidation in July 1998. The current fees range from $3,908 to$5,830 per acre. PROJECT/CONTRACT COST SUMMARY Staff estimates that there are approximately 8,250 acres within Orange County and adjacent to our service area boundaries. If all of these properties were to annex to the District, we would receive approximately$35 million. When the properties are developed they will also pay appropriate CFCCs, and when they are occupied and connected to the sewer they will pay annual user fees. The amount of CFCCs and user fees cannot be determined at this time as the ultimate use of the property is unknown. 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) wNupwimamm pema a.oemaao,eo.ropmaa igeiae neoe,uniwuem aomrewe ai ex a�. oawoa Page 1 Book Page 35 ADDITIONAL INFORMATION Please see attached staff report and draft ordinance ALTERNATIVES Alternatives are discussed in the staff report CECA FINDINGS N/A ATTACHMENTS 1. Staff Report 2. Draft Ordinance H M�pen4drE Arne Hdpo VCU Hoard AWm sAgeMa ReP W1WN aOrE:mrxv ztaoc He.aed: osroam Page 2 Book Page 36 D " co 0 December 10, 2003 STAFF REPORT Annexation Fees BACKGROUND Annexation fees are the fees paid by the owners of property outside of the District's service area that wish to now be inside the service area. Fees are required for two principal reasons. All properties that have been within the service area have contributed property taxes to the District. Prior to the passage of Proposition 13, the Districts levied separate property taxes for operations, capital improvements and debt service. Subsequently, a portion of the 1% basic levy has been allocated to the District. Properties that have been outside of the District have not paid, or had allocated, any of their property taxes to the District- Thus, these properties have not contributed to any of the facilities or other assets of the District. One of the objectives of an annexation fee is to place the annexing properties as closely as possible to the relative financial position they would have been in had the property always been within the District service area. This could be interpreted to mean that an annexing property should pay an amount equal the present value of the accumulated property taxes that would have been paid since 1954. Future properly taxes are also an issue for annexing properties. Current law does not allow the agency that the properties are annexing into to automatically participate in the property tax allocation. A property tax exchange agreement must be negotiated with each of the agencies that had been receiving a share of the taxes. This means that each of them must agree to a lesser share of the taxes in order for the District to receive any. These agreements have proven to be difficult to impossible to negotiate. DISCUSSION There are three basic alternatives for calculating an annexation fee that put an annexing property in approximately the same financial position as other properties, depending on how that is defined. For the sake of simplicity, these alternatives can be called "net equity;"back taxes" and'net current assets." Each of these methods also requires payment of a connection fee or Capital Facilities Capacity Charge(CFCC)before the property can use the District's sewerage system. The'net equity" method and variations on it are based upon the theory that the annexation property should buy into the current fiscal position of the District. This buy-in is based upon the most recent financial statements and is easily verified. The financial position can include upon the cost of fixed assets or the cost can be reduced by accumulated depreciation to reflect use of those assets. Whichever valuation of net equity is used, that value is divided by the total OC D- P.O.Boa 8127 - Fow m Vallry.CA 92n"127 - (714)M-2411 Book Page 37 Annexation Fees Page 2 of 3 December 10, 2003 number of acres in the service area to determine an annexation fee per acre. This method could provide the appearance of a double charge since the CFCC paid at the time of connection also includes a component for the value of the sewerage system and equipment. Of course properties that have always been within the service area must also pay the CFCC and those properties have always contributed somewhat to net equity. The "back taxes" method seems on the surface to put properties that annex into the same fiscal position as properties that have always been in the service area, but that have not connected to the system. To use this method the assessed value of the property for each year since 1954, the average property tax rate for each year prior to 1978 and property tax allocation factor for year must be known for each annexation. This information is not available at the District and is not expected to be available from the County Assessor's Office. User fees would be excluded from this calculation as those are fees for service which the annexing properties did not receive and should not have paid. The "net current assets" method omits the value of fixed assets and long-term liabilities from the calculation. The theory behind omitting these costs is that the CFCC that will be paid when the property connects to the system will include the proper charge for fixed assets, or rapacity in the system. The remaining "net current assets"would basically be cash and inventories that will reduce future user fees. So far the discussion of the three alternative methods has focused only on the value or worth of past property tax payments or allocations. Future property tax allocations are also an issue. Although property values may rise because sewer service is available and although the property owner will pay the same 1% basic levy as other properties in the District,the District will not receive any property tax allocation. Property tax exchange agreement negotiations fall routinely because the District has the ability to levy a user fee while other"tax-supported" agencies do not. In fact, this very issue is at the heart of the formation of District 13 in 1985; the County refused to share any of their historical property tax allocation. The County actually has a policy not to share historical property taxes with new enterprise districts. There are two ways to provide for the future property taxes that will not be shared. One way is to include them in the sewer user fees. Because the average property tax allocation to the District is about 2.8°/a of the 1% basic levy, these foregone taxes are relatively minor and the impact on the average user fee may be considered to be relatively insignificant. For example, the District's 2003-04 property tax allocation will be approximately$150 per acre. The user fee impact of this method is quite small for an individual properly annexation. There are approximately 8,250 acres within the County and adjacent to our service area that are not currently annexed. The largest of these are the Boise Chica, the Seal Beach Naval Weapons Station and Orange Park Acres. If we assume the current average property tax of$156 per year per acre for each of these 8,250 acres, then the impact on the user fee would be about $1.40 for a single-family residence in order to generate the equivalent $1,287,000. Another solution is to collect from the owner of the annexing property an additional amount that would earn annual interest approximately equal to the property taxes that are lost. For example, the 2003-04 property tax allocation for the District is $44 million and the service area is approximately 282,000 acres. This means that the average property tax per acre is about$150 per year. Assuming an average annual interest rate of 5%, it would take a principal amount of $3,000 to generate$150 per year. This method would allow us to use our standard annexation Book Page 38 Annexation Fees Page 3 of 3 December 10, 2003 fee as a basis for determining the in-lieu charges for providing service to areas outside the County that are served by contract. RECOMMENDATION Staff has considered the discussion above, along with the discussion of Capital Facilities Capacity Charge alternatives and Sewer Service User Fees, and the histories of each of these charges. We believe that the calculation of Annexation Fees and CFCCs must be coordinated to ensure that no properties pay twice for the same facilities, that all new properties to the District pay their fair share for the assets provided by older properties, that each new user of the sewer system, no matter when they became members of the District, pays its fair share of the cost of the facilities that they will use, and that all users pay their fair share of ongoing operations and maintenance expenses. Staff recommends that the Annexation Fee be made up of two components; a fee for net current assets and a fee to provide equivalent property tax allocations. The property's share of fixed assets will be paid through the CFCC,which is based upon the type of development and the resultant demands upon the sewerage system. Based upon the financial report for June 30, 2003, and the 2003-04 budget, these two parts would be$1,235 and $3,000 for a total of$4,235 per acre. The fee could be revisited each year and a new Ordinance adopted by the Board, or it could be revisited whenever the Capital Facilities Capacity Charge is reconsidered. The current annexation fees range from$3,908 to$5,830 per acre but they are not firmly anchored in the balance sheet, the income statement or the budget. GGS G:\wp.dWa fin@10\CRANE\FAHMFAHR2D03\DEC\Staff Repod-annexation fees 121003.doc Book Page 39 STEERING COMMITTEE PF-b DDate To Bd.arpr. 11/16/05 11/16/05 AGENDA REPORT Rem Number Item Number Orange County Sanitation District Brm FROM: Robert P. Ghirelli, D.Env., Director of Technical Services and Acting Director of Public Affairs Originator: Karen I. Baroldi, Senior Environmental Specialist SUBJECT: STATE AND FEDERAL LEGISLATIVE ADVOCACY GENERAL MANAGER'S RECOMMENDATION Authorize renewal of contracts with ENS Resources (Eric Sapirstein) and Freshman and Kest (John Freshman and Larry Kast)at$10,000/month; Mayer, Brown, Rowe & Maw (Scott Baugh) at$5,000/month; and Townsend Public Affairs (Chris Townsend) at $5,000/month for a one-year period from January 1, 2006 through December 31, 2006, and the option to renew for an additional one-year period at the discretion of the Steering Committee. SUMMARY On November 19, 2003, the Board of Directors established a budget of$320,000 for state and federal advocacy and authorized the General Manager to enter into Consultant Services Agreements with three providers: ENS Resources Inc. and Freshman Kest(a subcontractor to ENS Resources), Mayer, Brown, Rowe & Maw, LLP, and Townsend Public Affairs, Inc. The contracts were authorized for the 2004 calendar year, and they are renewable for up to three one-year periods at the discretion of the Steering Committee. During the 2005 Legislative Calendar, the Orange County Sanitation District (Sanitation District) renewed the contracts of its four legislative advocacy consultants to continue assisting the agency in forwarding its legislative agenda and responding to legislation of interest to the Sanitation District. PRIOR COMMITTEEIBOARD ACTIONS November 19, 2003 — Board approved current contracts with the three providers. These contracts expire on December 31, 2004. November 20, 2002— Board approved prior contract with ENS Resources, Inc. This contract expired on December 31, 2003. PROJECT/CONTRACT COST SUMMARY Contract amounts would remain the same as the previous year. The monthly contract costs per consultant are: • ENS Resources (Eric Sapirstein) and Freshman and Kast (John Freshman and Larry Kest)- $10,000 C:Mx nenbaM SeW„p`pnellLLaul SNprryplTmpvary Memel Fin`OLN21111WS W O(0)ARLepsMrn Final(2tdu Regae. „Inros Page 1 Book Page 41 • Mayer, Brown, Rowe & Maw (Scott Baugh) - $5,000 • Townsend Public Affairs (Chris Townsend)- $5,000 BUDGETIMPACT ® This Item has been budgeted. (Line item: General Manager's Budget) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION ENS Resources and Freshman Kest: Consulting services focused on the acquisition of federal funding through the State and Tribal Assistance Grant (STAG) and the Water Resources Development Act (WRDA) appropriations for secondary treatment. Townsend Public Affairs: Consulting services focused on supporting legislative efforts, strategy for biosolids management and forwarding the Orange County boundary initiative. Townsend Public Affairs also focused on researching state and local funding opportunities. Mayer, Brown, Rowe & Maw: Consulting services focused on state legislative initiatives to support District goals in the areas of funding for secondary treatment. Mayer, Brown, Rowe & Maw, LLP also facilitated meetings with key legislators and assisted Sanitation District staff with developing strategies for various agency initiatives and programs. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS None L:1Nom ab WUlUnIV.11 1881Yn8.%Ten lNlmel Fl1.10U21118p5M8(d)AR_UpIfAQ.WN_FI,W(2)(2). eex..d: 11 a 5 Page 2 Book Page 42 STEERING COMMITTEE Meeting Date To ad.of Dir. ....6,05 AGENDA REPORT Item Number Item Number 8(e) Orange County Sanitation District FROM: Robert P. Ghirelli, Acting General Manager Originator: Gail Garrett, Committee Secretary SUBJECT: December 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 December. 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 December: OMTS Committee: 1. Consider Source Control Annual Report 2. Consider Procurement of Portable Odor Scrubbers 3. Dioxin Update 4. Report on Impact of SWRCB's Proposed SSO Reduction Program for Sewers 5. Consider Award of Services Contract for CCTV Tape Review 6. Consider Fleet Management Software System 7. Report on Advanced Maintenance Practices PDC Committee: 1. Ratify Change Order No. 6 for Job No. P1-76,Trickling Filter Rehabilitation and New Secondary Clarifiers at Plant No. 1 2. Ratify Change Order No. 24 for Job No. P1-37, Primary Clarifiers 16-31 and Related Facilities 3. Ratify Change Order No. 18 for Contract No. 1-24, Bushard Trunk Sewer Rehabilitation 4. Ratify Change Order No. 7 for Job No. P2-47-3, Secondary Treatment Facilities Process Upgrades at Plant No. 2 5. Ratify Change Order No. 14 for Job No. J-35-2, Area Classification Study Implementation Plan, Plant Nos. 1 and 2 6. Ratify Change Order No. 10 for Job No. J-77, Effluent Pump Station Annex 7. Approve PSA for Job No. P1-106,Truck Wash and Dewatering Beds at Plant No. 1 8. Ratify Change Order No. 1 and Approve Final Closeout Agreement for Job No. FE03-24, VFD Replacement at the Waste Sidestream Pump Station Book Page 43 9. Ratify Change Order No. 1 and Approve Closeout Agreement for Job No. J-67, Peak Flow Management 10. Ratify Change Order No. 7 and Approve a Budget Increase for Job No. P2-47-3, Secondary Treatment Facilities Process Upgrades at Plant No. 2 11. Approve Budget Amendment, Ratify Change Order No. 2, and Approve Notice of Completion and Final Closeout Agreement for Job No. P1-62, Sunflower Pump Station Drive Replacement 12. Approve a Construction Budget Increase for Contract No. 7-32-1, Gisler-Redhill Trunk Sewer Relocation- Phase 1 13. Approve a Budget Increase and Authorize the General Manager to Solicit Bids and Award a Construction Contract for Contract No. 2- 41.4, Santa Ana River Interceptor 2005 - Emergency Repairs from 10,000 cis Release 14. Approve Amendment No. 3 to the PSA for Contract No. 7-36, Gisler- Redhill Trunk Improvements, Reach "A; 7-39, Orange Trunk Improvements; and 7-41, Gisler-Redhill/ North Trunk Improvements 15. Approve Plans & Specs and Addendum No. 1, Receive and File Bid Tab, and Award Construction Contract for Job No. FE02-59 & FE02- 60, Access Improvements for Plant Nos. 1 and 2 Electrical Equipment 16. Authorize the GM to commit OCSD to the purchase of a 35% interest in parcels in San Bernardino County for Prado Basin Regional Biosolids Partnership Land Acquisition 17. 1-96, Continuous Feed Chemical Treatment Facility- CEQA Update FAHR Committee: 1. Consider Preliminary Budget Assumptions for 2005-06 2. Consider Selection of Contracted Internal Auditors 3. Consider Approval of financing documents for issuance of COPs Series 2005 4. Consider Approval of financing documents for issuance of COPs Series 2005 5. Consider Purchases Authorized by the General Manager 6. Electronic Employment Application Update 7. Consider Quarterly Human Resources Policies and Procedures 8. Consider Security Concepts/Plan 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) KWeeMO�kSt NCDm RUVNMI M I IN5461 of P WOe:eftn .9dw A.wsea:arxiae Page 2 Book Page 44 ADDITIONAL INFORMATION NA ALTERNATIVES NA CEQA FINDINGS Not a project. ATTACHMENTS NA 99 NUepNpeVCWealnv Wmnneozoos\1 I" IM uu el PRe Im Ua .,.B tlx mm Page 3 Book Page 45 STEERING COMMITTEE Meeting Date To Rd.of Dlr. 11/16/05 AGENDA REPORT Item Number Item Number 8(Fl Orange County Sanitation District FROM: Robert P. Ghirelli, Acting General Manager Originator: Gail Garrett, 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 November 2005 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 November 16 2005 meeting: CONSENT CALENDAR 9. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. Approve revised language due to late Contractor request for Change Order No. 17 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, with Steve P. Rados, Inc., authorizing an addition of$23,707, increasing the total contract amount to $35,710,113, that was approved at the October 26, 2005 Board Meeting. b. (1) Receive and file petition from the Irvine Company requesting annexation of 409 acres to the Orange County Sanitation District in the vicinity of Santiago Canyon Road and Foothill Eastern Transportation Corridor, an unincorporated area in Orange County; and, (2)Adopt Resolution No. OCSD 05-26, authorizing initiation of proceedings to annex said territory to the Orange County Sanitation District (Proposed Annexation No. OCSD-54— East Orange Area 1 Reorganization to the City of Orange Annexation). C. Approve an encroachment permit, in a form approved by General Counsel, with Wadand Investments Company over an existing Orange County Sanitation District sewer and easement built in connection with Miller-Holder Trunk Sewer, Contract No. 3-3. Book Page 47 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 October 26, 2005, and the Special Meeting held on October 28, 2005, to be filed. b. Authorize renewal of contracts with ENS Resources (Eric Sapirstein) and Freshman and Kest (John Freshman and Larry Kest) at$10,000/month; Mayer, Brown, Rowe & Maw (Scott Baugh) at $5,000/month; and Townsend Public Affairs (Chris Townsend) at $5,000/month for a one year period effective January 1, 2006 through December 31, 2006, and the option to renew for one additional one-year period at the discretion of the Steering Committee. Non-Consent Calendar C. Review and consideration of agenda items considered by the Steering Committee re the November 16, 2005 meeting. d. Consideration of items deleted from Steering Committee Consent Calendar, if any. 12. CIP OVERSIGHT AD HOC COMMITTEE Consent Calendar a. Order draft CIP Oversight Ad Hoc Committee Minutes for the meeting held on November 1, 2005, to be filed. Non-Consent Calendar b. Consideration of items deleted from CIP Oversight ad Hoc Committee Consent Calendar, if any. 13. OPERATIONS MAINTENANCE AND TECHNICAL SERVICES COMMITTEE OMTS OMTS Consent Calendar K NepNgendaVleenng C Ifee=051H\91605 Usl of ARa V Noror er BwNarldm Rmsed'. WM8 Page 2 Book Page 48 a. Order draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on November 2, 2005 to be filed. b. Receive and file the Waste Discharge Requirements Sewer System Management Plan; Status Report on the Development of a Reporting Methodology for Subsurface Discharges of Sewage; and Portable Aeration Report prepared by Brown and Caldwell. C. Authorize the General Manager to finalize negotiations and subsequently award a contract to Workforce Software for Time Entry, Specification No. CS-2005-21661), for technical consulting, implementation support and software purchase in the amount of$146,625, and a contingency of $28,375, for a total amount not to exceed $175,000. d. Receive and file Bid Tabulation and award a contract for the purchase of Magnesium Hydroxide, Specification No. C-2005-244 to Hill Brothers Chemical Company at an initial delivered unit price of$1.64 per gallon excluding sales tax; indexed to natural gas previous month's daily average NYMEX Henry-Hub gas base price of$13.25 per MMBtu and an escalation index factor of an additional $0.06 per gallon magnesium hydroxide for every increase of$1.00 above the indexed cost,for a total amount not to exceed $415,000. Non-Consent Calendar e. Consideration of items deleted from OMTS Consent Calendar, if any. 14. PLANNING DESIGN AND CONSTRUCTION COMMITTEE (PDC) PDC Consent Calendar a. Order draft Planning, Design and Construction Committee Minutes for the meeting held on November 3, 2005 to be filed. b. Cancel the current Professional Services Agreement contract with ADS Environmental for the Long Term Flow Monitoring Program, Job No. J-73-2. C. (1)Approve Plans and Specifications for Rehabilitation of the Activated Sludge Plant at Plant No. 2, Job No. P2-74, on file at the office of the Board Secretary; (2)Approve Addenda Nos. 1, 2, 3, and 4 to the plans and specifications; (3) Receive and file bid tabulation and recommendation; and, (4)Award a construction contract to J.F. Shea, Inc. for Rehabilitation of the Activated Sludge Plant at Plant No. 2, Job No. P2-74, for an amount not to exceed $9,887,981. neeynpawt4ieen„p co-rmveeuaos,n,,,eos uu a un w xme,ro«m.w,.>.aa anew: vmw Page 3 Book Page 49 d. Approve a budget increase of$2,000,000 for the construction of the Newport Trunk Sewer and Force Mains, Bitter Point Pump Station to Coast Trunk Sewer, Contract No. 5-58, for a total budget amount of $21,652,000. e. Approve Amendment No. 8 to the Professional Services Agreement with SPEC Services, Inc. for Standby Power and Reliability Improvements to Treatment Plant Nos. 1 and 2, Job No. J-33-1, providing for additional engineering services for an additional amount of$134,500, increasing the total amount not to exceed $3,359,932. f. Approve Amendment No. 2 to the Professional Services Agreement with Tetra Tech, Inc. providing for additional engineering services for Gisler- Redhill Trunk Improvements, Reach "B", Contract No. 7-37, for an additional amount of$194,400, increasing the total amount not to exceed $555,780. g. (1) Approve time extensions to Cooperative Project Contract Agreements: Contract No. 0401 with the City of Anaheim; Contract No. 0408 with the City of Fullerton; Contract No. 0208 with the City of Huntington Beach; Contract No. 0127 with the City of La Habra; Contract No. 0412 with the City of La Palma; Contract No. 0130 with the City of Orange; and Contract No. 0416 with the City of Villa Park; and, (2)Approve additional funding in the amount of$107,201 for Contract No. 0415 with Sunset Beach Sanitary District, increasing the total amount not to exceed $352,201. Non-Consent Calendar h. Approve Professional Services Agreement with EarthTech providing for Construction Management services for Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, for an amount not to exceed $2,052,593. i. Consideration of items deleted from PDC Consent Calendar, if any. 15. 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 November 9, 2005 to be filed. (Minutes to be distributed at 11116105 Board Meeting.) b. Recommend to the Board of Directors to receive and file the 2005-06 First Quarter Financial Report for the period ending September 30, 2005. NMIIIIWI W0�010C Ice W5I1 III 11050511e101 MII W NmenOx a W.r7A. aensee: ermne Page 4 Book Page 50 C. Receive and file the Swap Report for the quarter ended September 30, 2005. d. Adopt Resolution No. OCSD05-27, Approving Amended Deferred Compensation Plan (2005) for Officers and Employees of the Orange County Sanitation District. e. Receive and file Treasurer's Report for the month of September 2005. f. Receive and file the Quarterly Investment Management Program Report for the period July 1, 2005 through September 30, 2005. g. Appoint Bear, Steams & Co., Inc. as the District's Underwriter/Remarketing Agent for the COP Series 2005 variable rate debt issuance at the lowest annual cost to the District; and a cost of issuance amount not to exceed $140,530, in a form approved by General Counsel. h. Receive and file the Comprehensive Annual Financial Report for the year ending June 30, 2005, prepared by staff and audited by Conrad and Associates, Certified Public Accountants. 1. (1) Approve the reclassification of seven employees; (2) Approve position upgrades of four positions; and, (3)Approve equity adjustment for one employee. j. (1) Direct staff to seek proposals from firms that provide Workers' Compensation Third Party Administrator (TPA) services; (2) Authorize staff to terminate the existing Workers' Compensation TPA services agreement with Cambridge Integrated Services Group, Inc. effective June 30, 2006, based on conducive market conditions; and, (3) Authorize staff to negotiate a new contract for Workers' Compensation TPA services based on competitive bidding, if advantageous, which is to include a favorable cost structure. FAHR Non-Consent Calendar k. Consideration of items deleted from FAHR Consent Calendar, if any. XMepllppnEa%Wrn8 L a,oBWMI fN 11W UM W FW for NbmnEar 8oeN.er.7.dw NeuieW: arzaae Page 5 Book Page 51 16. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar a. Order Joint Groundwater Replenishment System Steering Committee Minutes for the meeting held on October 10, 2005 to be filed. GWRSSC Non-Consent Calendar b. Consideration of items deleted from GWRSSC Consent Calendar, if any. NON-CONSENT CALENDAR 17. Closed Session 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 99 XbeY�N9mne45bMM GMNinM1200S11%111505 Ibl WPAS Iw NO ramNre.>.Ooc m„sea: ermae Page 6 Book Page 52 ,g 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