HomeMy WebLinkAbout2005-12 DRAFT
MINUTES OF STEERING COMMITTEE MEETING
Orange County Sanitation District
Wednesday, December 21, 2005, at 5 p.m.
A meeting of the Steering Committee of the Orange County Sanitation District was
held on Wednesday, December 21, 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: OTHERS PRESENT:
Directors Present: Bradley R. Hogin, General Counsel
Steve Anderson, Chair Don Hughes
Jim Ferryman, Vice Chair
Carolyn Cavecche, Chair, OMTS Committee STAFF PRESENT:
Tod Ridgeway, Chairman, PDC Committee Jim Ruth, Interim General Manager
Jim Silva, County Supervisor Nick Arhontes, Director of Regional Assets and
Services
Bob Ghirelli, Director of Technical Services,
Acting Director of Public Affairs
Directors Absent: Lorenzo Tyner, Director of Finance/Treasurer
Darryl Miller, Chairman, FAHR Committee Lisa Tomko, Director of Human Resources
Daisy Covambbias, Public Information Specialist
Juanita Skillman, Records Management
Specialist
Ryal Wheeler, Maintenance Supervisor
Gail Garrett, Committee Secretary
FILED
(2) APPOINTMENT OF CHAIR PRO TEM IN THE OFFICE OF THE SECRETARY
ORANGE P` --l-IN DISTRICT
No appointment was necessary. JA 25 200&
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(3) PUBLIC COMMENTS --
There were no comments by any member of the public.
(4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING
The minutes of the November 16, 2005 Steering Committee meeting were approved as drafted.
Miqutes of the Steering Committee
Page 2
December 21, 2005
(5) REPORT OF THE COMMITTEE CHAIR
Committee Chair Steve Anderson reported that the Sanitation District has asked all cities and
agencies to participate in the Fats, Oils and Grease (FOG) program, requesting a response by
January 13. A copy of the letter was provided to all Board members.
The CASA Mid-Year conference will be held in Indian Wells, CA on January 18-21. Directors
Anderson, Ferryman, Miller and Silva plan to attend, as will Interim General Manger Jim Ruth and
Bob Ghirelli.
Information packets for the 2006 CASA Annual Workshop in Washington DC March 6-8, 2006 were
provided. Directors who plan to attend should contact Gail Garrett.
The three standing Committees will be dark in January, however Steering and Board will meet on
January 25. The Orange County Leadership Symposium will be held January 13- 15 in Lake
Arrowhead.
Congressman John Campbell was unable to attend the Steering Committee meeting. Scott Baugh
will arrange for a visit and a plant tour with the Senator in January.
Director Cavecche requested that Interim General Manager Ruth schedule two meetings with
Steering Committee members prior to the January Board.
(6) REPORT OF THE GENERAL MANAGER
Interim General Manager Ruth reported that in response to the Kimberly Clark settlement agreement,
he and Lorenzo Tyner, Director of Finance, have negotiated an agreement with Bartle Wells to
conduct a study on rate structure and analysis. The fine has performed extensive work in Orange
County and throughout the state. Their recommendations will be provided to the February Board.
Mr. Ruth submitted a written status report to the Board and informed that he will continue to provide a
monthly status report to the Steering Committee. He informed that he has received excellent
cooperation from management and staff, has met with and will be working with the management
consultants, and will provide recommendations to the Board in February.
An informational survey has been included in the Directors folders to be completed and returned to
Board Secretary, Penny Kyle.
(7) REPORT OF GENERAL COUNSEL
General Counsel Brad Hogin said the State Water Resources Control Board issued draft statewide
wastewater discharge requirements which do not contain affirmative defense language, therefore this
will be the focus for legal comments during the upcoming public comment period. California
Association of Sanitation Agencies (CASA)will also participate in the public comments phase.The
State Board may adopt the new requirements at the February 8th hearing.
Miputes of the Steering Committee
Page 3
December 21, 2005
(8) DISCUSSION ITEMS (Items A-D)
A. Legislative Agenda—2006 Legislative Session
Approve the 2006 Legislative Agenda and authorize staff to take action on legislation
consistent with the policy statements contained in the agenda.
MOTION: It was moved, seconded and duly carried to recommend approval to the Board of
Directors.
Dr. Ghirelli and Chair Anderson complimented Karen Baroldi on her efforts.
B. State and Federal Legislative Advocacy Consultant Services Contract Renewal
Authorize renewal of contracts with ENS Resources (Eric Sapirsteln)and Freshman
Kest(John Freshman)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.
MOTION: It was moved, seconded and duly carried to recommend approval to the Board of
Directors. Steering Committee requested that (1) Staff document and monitor lobbyists
goalstefforts; and (2)obtain monthly reports from the lobbyists on their legislative
advocacy and grant efforts and report to the Board.
Dr. Ghirelli handed out and reviewed the legislative calendar through March 2006.
MOTION: It was further moved, seconded and duly carried that the Board Chair appoint a
Legislative Committee to advise the Board on legislative matters.
C. The three Standing Committees will be dark In January.
D. 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
Director Cavecche requested that Jim Herberg, Director of Operations & Maintenance, provide at the
February or March Board meeting an informational report on the level of treatment and the
operational costs associated with the treatment level.
Director Cavecche asked whether it would be appropriate to allow a vendor to present a proposal at
the OMTS regarding the biosolids project. General Counsel advised that it was not proper.
Minutes of the Steering Committee
Page 4
December 21, 2005
Dr. Ghirelli provided an update on the Inland Empire Utility Agency (IEUA) regional biosolids land
procurement. The coalition has ascertained the Chino property is unsuitable for biosolids disposal
and has halted their due diligence on the Chino property. They are researching a new 30 acre parcel
adjacent to Western Municipal Water District. General Manager Ruth concurs with District and IEUA
staff to go ahead with due diligence on the new site.
(11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR
ACTION AND/OR STAFF REPORT
There were none.
(12) CONSIDERATION OF UPCOMING MEETINGS
The next Steering Committee meeting is scheduled for Wednesday, January 25, 2006 at 5 p.m.
The next Board Meeting is scheduled for Wednesday, January 25, 2006 at 7 p.m.
(13) CLOSED SESSION
There was no closed session.
(14) ADJOURNMENT
The Chair declared the meeting adjourned at 6:15 p.m.
Submitted
by:
Gail Garrett
Steering Committee Secretary
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STATE OF CALIFORNIA )
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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, December 21, 2005, was
duly posted for public inspection in the main lobby of the Districrs offices on Thursday, December
15, 2005.
IN WITNESS WHEREOF, I have hereunto set my hand this 21st day of December, 2005.
;JA4�
Penny Kyle, Sebhatary 0 the Board of Directors of
Orange County Sanitation District
Posted: December 15. 2005. 12:00 oo.m.
By:
Signature
ORANGE COUNTY SANITATION DISTRICT
phone:
A 1419fi2-2411
fat:
(714)96M356
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To maintain i,ei fleas leadership in wastewater and water resource management.
STEERING COMMITTEE AND BOARD MEETING DATES
FOR THE NEXT TWELVE MONTHS
'Wednesday, December 21, 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 19, 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.
HddeptlagendMSteenng CommideeMWeegng Dates Fo Zdm
STEERING COMMITTEE
(1) Roll Call:
Meeting Date: December 21, 2005 Meeting Time: 5:00 p.m.
Meeting Adjourned: D.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
Jim Ruth, Interim General Manager
Nick Arhontes, Director of Regional Assets & Services
Bob Ghirelli, Director of Technical Services,
Acting Director of Public Affairs
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
Karen Baroldi, Senior Environmental Specialist
Jennifer Cabral, Senior Public Information Specialist
Jim Colston, Legal & Regulatory Affairs Liaison
Layne Baroldi, Legal & Regulatory Affairs Liaison
c: Lenora Crane
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AGENDA
REGULAR MEETING OF THE STEERING COMMITTEE
ORANGE COUNTY SANITATION DISTRICT
WEDNESDAY, DECEMBER 21, 2005 AT 5 P.M.
ADMINISTRATIVE OFFICE
10844 Ellis Avenue
Fountain Valley, California
Agenda Postina: In accordance with the requirements of California Government Code Section 54954.2,
this agenda has been posted In the main lobby ofthe District's Administrative offices not lessthan 72 hours
prior to the meeting date and time above. All written materiels relating to each agenda item are available for
public Inspection in the office of the Board Secretary.
Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the
Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an
emergency item or because there is a need to take immediate action,which need came to the attention of
the Committee subsequent to the posting of agenda,or as set forth on a supplemental agenda posted in the
manner as above,not less than 72 hours prior to the meeting date.
Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you
require any special disability related accommodations,please contact the Orange County Sanitation District
Board Secretary's office at(714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must
specify the nature of the disability and the type of accommodation requested.
Items Continued: Items maybe continued from this meeting without further notice to a Committee meeting
held within five(5)days of this meeting per Government Code Section 54954.2(b)(3).
Meetino Adjournment: 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
-2- December 21, 2005 Agenda
(3) PUBLIC COMMENTS
All persons wishing to address the Steering Committee on specific agenda items or matters of
general interest should do so at this time. As determined by the Chairman, speakers may be
deferred until the specific item is taken for discussion and remarks may be limited to three
minutes.
Matters of interest addressed by a member of the public and not listed on this agenda cannot
have action taken by the Committee except as authorized by Section 54954.2(b).
(4) APPROVE MINUTES OF PREVIOUS MEETING
Approve draft minutes of the November 16, 2005 Steering Committee meeting.
(5) REPORT OF COMMITTEE CHAIR
(6) REPORT OF GENERAL MANAGER
(7) REPORT OF GENERAL COUNSEL
(8) DISCUSSION ITEMS (Items A-D)
A. Legislative Agenda—2006 Legislative Session (Ghirelli)
B. State and Federal Legislative Advocacy Consultant Service Contract Renewal
(Ghirelli)
C. Review Agenda Items scheduled to be presented to Committees in January
(January is dark for all three committees)
D. Review and consideration of Agenda Items for Board of Directors Meeting of
December 21, 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
(12) FUTURE MEETING DATES
-3- December 21, 2005 Agenda
The next Steering Committee Meeting is scheduled for 5 p.m.,Wednesday, January 25, 2006.
The next Board Meeting is scheduled for 7 p.m., Wednesday, January 25, 2006.
(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. Confer with General Counsel re existing litigation, Orange County
Sanitation District, et al. v. County of Kern, et al., Tulare County Superior
Court Case No. 189564. Government Code Section 54956.9.
2. Confer with General Counsel re significant exposure to litigation against
the District. Claimant: Joel Lorenz. Government Code Section 54956.9b
B. Reconvene in regular session
C. Consideration of action, if any, on matters considered in closed session.
(14) ADJOURNMENT
99
H:0EPMGENGAWEERING COMMMEEW4AGENM FORMAA
-4- December 21, 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 Hell)
Committee Staff Contact: James D.Ruth (714)593-7110
General Counsel: Brad Hogin (714)564.2606
Committee Secretary: Gail Garrett (714)593-7101
(714)962-0356 (Fax)
E-mall: ggamett@ocsd.com
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 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 Assets and
Jim Ferryman, Vice Chair Services
Carolyn Cavecche, Chair, OMTS 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 Finance/Treasurer
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
(2) APPOINTMENT OF CHAIR PRO TEM
No appointment was necessary.
(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
Govemor's Environmental & Economic Leadership Award for Ecosystem &Watershed Stewardship
for GWRS 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 Ghirelli 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 GWRS 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(IEUA)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.
(6) 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.
f
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 Buror provided additional
information requested by Directors at the prior Steering Committee meeting on
sewer capacity 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 year's 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 AND/OR STAFF REPORT
There were none.
I
(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
i
Minutes of the Steering Committee
Page 5
November 16, 2005
The Chair declared the meeting adjourned at 6:25 p.m.
Submitted by:
Gail Garrett
Steering Committee Secretary
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STEERING COMMITTEE Meeting Dare To ad.0 Dir.
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AGENDA REPORT Item scal Number Item Number
Orange County Sanitatlon District
FROM: Robert P. Ghirelli, D.Env., Director of Technical Services
Originator: Karen I. Baroldi, Senior Environmental Specialist
SUBJECT: LEGISLATIVE AGENDA-2006 LEGISLATIVE SESSION
GENERAL MANAGER'S RECOMMENDATION
Approve the 2006 Legislative Agenda and authorize staff to take action on legislation
consistent with the policy statements contained in the agenda.
SUMMARY
The Orange County Sanitation District (OCSD) recognizes the need to protect its
interests and the interests of its ratepayers through legislative advocacy at the federal,
state and local levels. In order to be effective in this effort, OCSD reviews legislative
activities prior to the beginning of each legislative year and then establishes positions
and strategies for addressing those activities that are a priority.
During the June 22, 2005 Steering Committee meeting, Director Ridgeway requested
that OCSD staff prepare an annual Legislative Agenda for the Board of Directors
(Board). The purpose of the Legislative Agenda is to provide the Board with information
on OCSD's legislative efforts, formalize these legislative efforts through Board-approved
polices and positions, and allow the Board and OCSD staff to take appropriate action
consistent with the annual Legislative Agenda policy statements.
The Legislative Agenda will be created annually, consistent with the federal and state
legislative calendars. The Legislative Agenda will provide a framework for OCSD's
legislative activities and guide staff and consultants in carrying out its Board-approved
legislative policies and positions.
PRIOR COMMITTEE/BOARD ACTIONS
The draft Legislative Agenda was presented to the Steering Committee during its
October 26, 2005 meeting. The Steering Committee requested some revision of the
document and was subsequently provided with an updated copy of the Legislative
Agenda for their review. Since the document was submitted for Steering Committee
member review, OCSD management has made minor modifications to a few of the
policies.
PROJECT/CONTRACT COST SUMMARY
N/A
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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
N/A
ALTERNATIVES
N/A
CEQA FINDINGS
N/A
ATTACHMENTS
LEGISLATIVE AGENDA - 2006 LEGISLATIVE SESSION
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Orange County Sanitation District
2006 LEGISLATIVE AGENDA
The Orange County Sanitation District (OCSD) recognizes the need to protect its
interests and the interests of its ratepayers through political involvement at the federal,
state and local levels. In order to be effective in protecting these interests, OCSD
reviews legislative action in Sacramento and Washington DC and has established a
framework for implementing its legislative advocacy efforts by crafting policies for
addressing those activities at the beginning of each legislative year. The following
legislative policies have been developed by OCSD staff and legislative advocates in
consideration of OCSD service area cities' and OCSD's policy needs. These Board-
approved policies serve as OCSD's official positions of support or opposition on issues
of importance to the agency. OCSD staff and Board may take appropriate action
consistent with these policies statements. Appropriate actions may consist of, but are
not limited to, drafting letters of support or opposition on proposed legislation, crafting
legislation, lobbying on behalf of or against proposed legislation or maintaining a
position without engaging in any proactive efforts.
FEDERAL & STATE LEGISLATIVE POLICIES
1. AIR QUALITY: OCSD is committed to complying with federal, state, and local air
quality laws and rules. OCSD is further committed to establishing an odor policy
to assure that the district is a good neighbor to the surrounding communities.
Therefore, OCSD shall:
a. Support air quality legislation that emphasizes the use of advance
technologies and applicable market incentives, and incentives for the use
of alternative fuels and the development of the infrastructure for alternative
fuel vehicles.
b. Support measures that maintain and enhance local decision-making
authority, where appropriate, in the development and implementation of air
quality attainment strategies.
c. Support legislation to ensure greater consistency between the California
and Federal Clean Air Acts; including the need to demonstrate cost-
effective public health or environmental benefit if California elects to
exceed federal standards.
d. Support strategies that clearly demonstrate and provide for the most cost-
effective means for meeting air quality goals.
1
i
i
e. Support, in concept, legislation that would utilize incentives and pricing
strategies as a preferred alternative to traditional command and control
regulations for meeting emission reduction objectives for all sources.
f. Oppose actions that preclude implementation of the Air Quality
Management Plan (AQMP) to the extent that such actions could subject
the basin to sanction or conformity penalties.
2. BIOSOLIDS: OCSD strives to beneficially use biosolids through multiple
management options performed at reasonable costs that are protective of public
health and the environment. Therefore, OCSD shall:
a. Support legislation that supports the use of biosolids as on non-food
production agricultural lands.
b. Support policies that encourage biosolids product use by horticulture and
retail consumers.
c. Oppose legislation that bans the use of biosolids for land application in
any region, county, or state.
d. Support science-based legislation that establishes a state-wide regulatory
system for biosolids management.
3. GRANT FUNDING: OCSD is committed to offsetting its research, special
projects and wastewater infrastructure project and construction costs by
obtaining funding through grants and cooperative agreements. Therefore, OCSD
shall:
a. Support appropriations legislation, bonds, programs, and projects that
provide funding for infrastructure construction and rehabilitation, special
studies and research or projects relating to security, environmental
education, water quality, wastewater processing, urban runoff, water
conservation, and water recycling.
b. Support projects that provide for public benefit, over projects that are
primarily intended for private benefit or gain.
c. Support continued federal funding for protecting and realigning the Santa
Ana River Interceptor project and for secondary treatment upgrades.
d. Oppose proposals placing further requirements on grant recipients that
return low value for high administrative cost.
I
i
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4. LABOR RELATIONS: OCSD is committed to the exercise of and provision of
orderly procedures for the administration of employer-employee relations,
including, but not limited to, meeting and conferring in good faith with recognized
employee organizations regarding the wages, hours of work, and other terms and
conditions of employment. Therefore, OCSD shall:
a. Support measures to reform current workers compensation formulas to
rely on higher thresholds for compensation or a proportionate exposure
formula.
b. Support health insurance reform that does not create additional financial
burdens on special districts.
c. Support measures to ease applicability of the Fair Labor Standards Act
(FLSA) on public agencies.
d. Oppose any measure imposing compulsory and binding arbitration with
respect to public employees.
e. Oppose any measure that imposes upon local government mandated
employee benefits that are more properly decided at the local bargaining
table.
f. Oppose efforts reducing local control over public employee disputes and
imposing regulations on an outside agency.
g. Oppose any measure granting public employees the right to strike.
h. Oppose a new mandatory Social Security tax for public employers and
public employees.
5. PLANNING: OCSD ensures the long-range planning of capital improvement
programs in order to deliver the highest quality facilities. Therefore, OCSD shall:
a. Support reform of existing state, regional, and local planning processes
only if directly linked to reforms in the current revenue and tax structure of
state and local governments.
b. Support measures that provide new revenues for growth management and
the public facilities necessary to support expected growth.
c. Support proposals encouraging regional, sub-regional or countywide
cooperation in planning urban development strategies, especially those
that provide funding for effective implementation of agreed upon goals.
d. Oppose legislation consolidating special districts that fail to address the
concerns of cities affected by the proposed consolidation.
e. Oppose measures that prevent or restrict the ability of cities or special
districts to participate in the Southern California Association of
Governments' (SCAG) sub-regional process.
3
1
6. PUBLIC HEALTH: Protection of public health is OCSD's core mission. OCSD
will work cooperatively with county and state health officers to assure local health
protection. Therefore, OCSD shall:
a. Support hazard mitigation, emergency response, planning, and recovery
through direct legislation, policy directives, and funding toward floodplain
security within the Santa Ana River watershed.
b. Support measures which provide for improved public health through
regulation.
c. Support the protection of public health through the construction and
implementation of advanced wastewater treatment technology.
7. PUBLIC WORKS: OCSD is committed to the achievement of effective and
efficient projects that provide wastewater treatment services that benefit its
ratepayers. Therefore, OCSD shall:
a. Support measures that provide funding and support to publicly owned
treatment works and sewerage collection systems.
b. Support legislation that allows public agencies to procure goods and
services in manners similar to private industry, thereby reducing overall
costs of delivery.
c. Support legislation that improves the Utility Underground Service Alert
Program in order to improve coordination, identification, minimize damage,
minimize environmental risks, and minimize cost exposure to publicly
owned facilities when contractors are performing sub-surface work.
d. Support a comprehensive response to the State's electricity and natural
gas shortages that provide a stable energy supply, which respects the
ability of municipalities to provide power, recognizes that infrastructure
(i.e. emergency and standby generators) exists that could be employed
temporarily during weak periods with minimal air quality impact and that
protects ratepayers (including cities and special districts) against dramatic
rate increases and statewide power outages.
e. Support legislation that allows OCSD to utilize the Best Value
Design/Build option for the construction of public works projects.
8. REVENUE & TAXATION: Track pending legislation to ensure OCSD remains in
compliance with the government code as it pertains to wastewater system user
fees and property tax revenues and the investment of public funds. Therefore,
OCSD shall:
4
a. Support measures leading to a greater financial independence from the
state and which would result In greater stability and predictability in local
government budgeting.
b. Oppose measures that impose mandated costs for which there is no
guarantee or local reimbursement or offsetting benefits.
c. Oppose legislation that shifts tax revenues away from local governments
without the adequate provision of a constitutionally guaranteed backfill to
offset the lost revenues of those local governments.
d. Oppose measures to ensure the state retention of existing local revenue
sources, including the special district share of property tax, sales tax,
vehicle license fees, rate payer fees.
e. Oppose the use of urban development related revenue, traditionally used
to fund the delivery of municipal services, to fund programs for which the
state is responsible, particularly the courts, health, and welfare programs.
9. SPECIAL DISTRICTS: OCSD supports the maintenance of special districts to
provide tailored services to citizen demands, in that special districts can directly
link costs to benefits for their constituents. Therefore, OCSD shall:
a. Support outreach to local, regional, and state elected officials to foster a
greater understanding regarding the critical relationship between adequate
reserves and the successful short-and-long-term operation of water and
wastewater agencies.
b. Support the work of the Association of California Water Agencies (ACWA),
California Association of Sanitation Agencies (CASA), and California
Special Districts Association (CSDA) in any future discussions or
negotiations pertaining to the legislative and budget issues relative to
preserving control of members' reserves.
c. Oppose further state regulations that adversely impact special district
financing and operations.
d. Oppose measures that create or grant powers to sub-regional or regional
bodies that would result in an infringement on clearly local concerns.
e. Oppose any administrative or legislative efforts to access or transfer any
reserve funds held by water and wastewater districts.
f. Oppose the imposition of unfunded, mandated programs on local
governments.
5
10.WATER QUALITY & SUPPLY: OCSD is committed to participating
collaboratively in the protection of regional water resources for the benefit of the
people we serve. Therefore, OCSD shall:
a. Support continued federal and state funding for the Santa Ana River
Interceptor Relocation project.
b. Support measures to increase water supply and improve water quality in
the region.
c. Support measures that would increase funding for water reuse
technologies, including support for the Groundwater Replenishment
System project by the Orange County Water District and OCSD to create
new water supplies through recycling.
d. Support U.S. Army Corps of Engineers projects for Orange County
regarding watershed and water quality protection and sand replenishment.
e. Support measures that promote and provide for the use of reclaimed
water.
f. Support "watershed-based" solutions, including cost-shared studies with
the US Army Corps of Engineers, to water quality impairments that reflect
state-of-the-art science.
g. Support policy development, funding, and research for addressing urban
runoff and beach closures, including funding for studies which identify the
sources of bacterial, viral and other contaminants and human pathogens.
h. Support measures to evaluate water quality standards as needed to
ensure the objectives are appropriately protecting the designated use.
i. Support measures to develop a state-wide consistent policy for total
maximum daily load (TMDL) listing and delisting.
j. Support State General Fund subventions and Bond revenue to special
districts for local and regional efforts that educate the public on urban
runoff, which provide for long-term capital improvements (like storm drain
diversions and filters), and which encourage municipalities to implement
Urban Runoff Best Management Practices at the local level.
k. Support legislation that would retain any Regional Board fines levied
against a permit violator within the Region of the fine.
I. Support legislation that provides "amnesty" from administrative civil liability
(ACL) fines from Regional Boards for agencies participating in
comprehensive watershed studies that will, when complete, address the
problem that resulted in the ACL fine.
m. Support efforts, including legislation, clarifying Regional Water Quality
Control Board requirements that necessitate expedition of funds are
unfunded mandates.
6
n. Support measures addressing non-point source pollution in order to
protect our ocean water quality and provide funding to mitigate its effects.
o. Support measures for alternative energy sources.
p. Support efforts to reduce the toxic and non-reusable waste load.
q. Support legislation and regulations that promote improved water use
efficiency in construction of water efficient buildings and communities.
r. Support legislation that promotes improved water use efficiency through
state and federal assistance in evaluating and implementing new
programs and technologies and increasing public awareness of water use
efficiency.
s. Support legislation that provides for groundwater management on a local
level, with respect to coordination of programs, extraction and production
rights, long-tens protection, and groundwater quality protection.
t. Support legislation that provides for the development of the watershed
approach, including watershed management plans and watershed based
permitting.
u. Oppose proposed environmental constraints on government agencies that
would result in economic damage to the region while providing only
minimal protections.
v. Oppose efforts to make all NPDES permits the same. Requirements of
other permits may be too onerous or not applicable. OCSD's permit
should be tailored to the Orange County region and watershed.
w. Oppose the imposition of statewide/nationwide fees for environmental
cleanup that is privately caused or regional in nature (e.g., the nexus
between those responsible for environmental abuse and those required to
pay for cleanup or mitigation is absent).
x. Support measures which support urban runoff studies and urban runoff
reduction.
y. Support Coastal Water Quality efforts to ensure that clean beach projects
remain a top priority for the state, whether through negotiations on
upcoming resources bonds, in setting of legislative priorities,
implementation of funding programs, and in any other relevant process.
7
STEERING COMMITTEE RWb.9Date T.-d— pr.
12-21-05 1 o
AGENDA REPORT 11em Nurt be I It..Number
Orange County Sanitation Districta(b)
FROM: Robert P. Ghirelli, D.Env., Director of Technical Services
Originator: Karen I. Baroldi, Senior Environmental Specialist
SUBJECT: STATE AND FEDERAL LEGISLATIVE ADVOCACY CONSULTANT
SERVICES CONTRACT RENEWAL
GENERAL MANAGER'S RECOMMENDATION
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 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
As part of the contract renewal process, the Steering Committee requested during their
October 26, 2005 meeting that the consultants provide a report of their legislative
advocacy efforts for 2005 and anticipated activities for 2006. These reports are provided
as attachments to this Agenda Report.
The legislative advocates' efforts for 2005 were focused on the following activities:
• ENS Resources (Eric Sapirstein) and Freshman and Kest (John Freshman and
Larry Kest): Eric Sapirstein and John Freshman engaged in meetings and regular
contact with key federal congressional members and their staff to emphasize the
importance of funding for OCSD secondary treatment upgrades and the SARI Line
project. These consultants have also provided assistance to members of OCSD staff
and the Board during their visits to Washington, DC. In addition, they have drafted
and submitted letters of request for OCSD-related wastewater infrastructure funding
to the Senate and House Appropriations committees in support of the STAG
Program, and worked to ensure that the funding commitment made by FEMA to
OCSD would not be reprogrammed to provide for other disaster relief efforts.
• Townsend Public Affairs (Chris Townsend): The efforts of Townsend Public Affairs
involved the identification of funding opportunities and meeting with key government
staff and elected officials on legislation and policy matters. Townsend Public Affairs
monitored legislation as it applied to potential sources of funding for OCSD projects
and provided updates on the status of current issues and pertinent legislation. They
worked with authors of state bond initiative bills to ensure the inclusion of funding for
wastewater infrastructure projects. Townsend Public Affairs has also reported to the
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Board on the implications of AB 1234, concerning special district board
compensation and ethics.
Mayer Brown Rowe & Maw(Scott Baugh): Scott Baugh provided updates on the
status of current issues and significant legislation, and facilitated meetings with key
legislators.
OCSD currently uses a weekly conference call as its ongoing review of the
consultants' legislative efforts to ensure that they remain focused on OCSD's
legislative advocacy goals. During this weekly conference call, consultants
provide verbal updates on their activities while OCSD staff and
representatives from the Board provide direction. The consultants also
present to the Steering Committee and the Board annually on the status of
their efforts for the past year and their future goals prior to their contracts
being renewed.
Beginning with the new contract period, OCSD will require that its legislative advocacy
consultants conform to two new reporting requirements. These include:
• Submittal of a monthly legislative report, consisting of a general update of events in
Washington, DC or Sacramento, and the current political climate. This monthly
report will be attached to the Board package.
• Submittal of a separate monthly task report, to be submitted with the consultants'
monthly invoices. This report will explain the speck legislative advocacy efforts
undertaken for the month by each legislative advocate on behalf of OCSD.
PRIOR COMMITTEE/BOARD ACTIONS
On November 19, 2003, the Board established a budget of$320,000 for state and
federal legislative advocacy and authorized the General Manager to enter into
Consultant Services Agreements with three consulting firms: ENS Resources, Inc.
(including Freshman Kest, a subcontractor to ENS Resources), Manatt, Phillips&
Phelps, LLP (contract later transferred to Mayer, Brown, Rowe & Maw, LLP), and
Townsend Public Affairs, Inc.
The amount approved in the budget for each consulting firm corresponded to the
following: ENS Resources, Inc. for a contract amount not to exceed $180,000; Mayer,
Brown, Rowe, and Maw, LLP for a contract amount not too exceed $60,000; and
Townsend Public Affairs, Inc. for a contract amount not to exceed $60,000. The
contracts were authorized for the 2004 calendar year, with a stipulation that they could
be renewed for up to three one-year periods at the discretion of the General Manager.
In November 2004, OCSD's General Manager renewed the contracts for all three
legislative advocacy consulting firms.
On October 26, 2005, each legislative advocacy consultant provided the Steering
Committee and the Board with a brief update on the status of their efforts for the past
NWdd•0•WctSWNCdnmtd =5112,133105 Slemn -LegfPOv Id-
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year and their future goals. The Steering Committee requested that the authorization for
future consultant contracts be renewed at the discretion of the Steering Committee.
The Steering Committee requested that the consultants draft a yearly report that
explains their legislative advocacy efforts over the past year.
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 Kest (John Freshman and
Larry Kest) - $10,000
• 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
The primary goal established for the legislative advocacy consultants is to provide
OCSD with assistance on political matters, including monitoring and commenting on
proposed legislation and obtaining grants for OCSD projects through state and federal
funding sources.
ENS Resources, Inc. provided a Letter of Agreement to OCSD on December 1, 2002
specifying their services. Their scope of work includes pursuing legislative language in
the EPA appropriations bill and laying the groundwork for developing a strategy to
obtain grant funding.
On March 20, 2001 Manatt, Phillips, & Phillips, LLP provided a Letter of Engagement for
Professional Services to OCSD for the same purpose. Their scope of work
encompassed providing strategic planning and advocacy for issues of concern to OCSD
and establishing a list of activities for supporting short- and long-term policy objectives.
Townsend Public Affairs, Inc. was selected through a Request for Proposal (RFP)
process on February 28, 2003 to provide legislative advocacy services focusing on state
political affairs. The scope of work presented in the RFP included lobbying state officials
on issues of importance to OCSD and assistance with pursuing state grant funds.
The pursuit of grant funds will remain the primary focus of all three legislative advocacy
consultants for the upcoming year. The OCSD Grant Program staff has documented the
efforts and resources expended by staff and consultants in their pursuit and
management of grant funds through a chart ("OCSD Grants Program — Cost/Benefit
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Analysis' see attachment). The chart covers the time period from the Grant Program's
inception (November 2002)though October 2005, and presents the grants awarded to
OCSD and the costs associated with obtaining those awards. Costs include legislative
advocates' contract costs, staff labor, and other costs associated with administering the
grant agreements.
ALTERNATIVES
N/A
CEQA FINDINGS
N/A
ATTACHMENTS
ENS Resources, Inc. (including Freshman and Kast) - Orange County Sanitation District
Federal Affairs Program Activities
Mayer, Brown, Rowe & Maw (Scott Baugh)- Legislative Advocacy Report
Townsend Public Affairs, Inc. - Summary of Grant/Legislative Activities and Outlook for
2006
OCSD Grants Program Cost/Benefit Analysis Chart
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ENS RESOURCES
FEDERAL AFFAIRS PROGRAM ACTIVITIES
SUMMARY OF 2005 ACTIVITIES FOR ORANGE COUNTY SANITATION
DISTRICT(OCSD)
As part of the team of governmental relations professionals engaged by Orange
County Sanitation District (OCSD), Eric Sapirstein and John Freshman made
steady consistent progress towards OCSD's objectives in 2005. It was a year of
considerable changes. Congress saw new Chairmen of the Appropriations
Committees in the House and in the Senate, a reorganization of the
Subcommittees that deal with funding for the State and Territorial Assistance
Grants (STAG) program that funds OCSD's secondary program, the
appointment of new Subcommittee chairmen. Because of complications related
to funding shortfalls in veteran's assistance programs, significant funding was
cut from the STAG program to compensate for the increased veterans spending
contained in the EPA-related funding measure. As a result, California received
minimal project funding with only a handful of projects funded at an average
level of approximately$250,000 to$500,000 per project. The bill did not include
funds for OCSD.
Managing change, developing and extending relationships and moving programs
forward are the hallmarks of successful government relations and an important
reason to have people on the ground in Washington. The OCSD Washington
team maintained and expanded OCSD's congressional liaison network, meeting
with the congressional delegation and key authorizing and appropriations staff
and Members. Among the key activities we conducted over the past year were
the following:
• Drafted legislative letters of request and assisted OCSD staff provide
appropriations request data required by congressional delegation and
House and Senate Committees on Appropriations related to secondary
treatment funding program.
• Developed briefing books and related materials in support of OCSD
funding request and for use in meetings with the congressional delegation
and key spending committees.
• Arranged meetings with OCSD Board Members and staff with key
delegation Members and staff including House Appropriations Committee
Chairman Jerry Lewis' Staff Director/Clerk to emphasize importance of
continued federal funding for secondary treatment. Among the
delegation, meetings were held with Senator Dianne Feinstein and her
staff and Representatives Gary Miller, Dana Rohrabacher, Ken Calvert,
(former Representative Chris Cox) and Ed Royce or their lead staff.
Meetings were also organized with a number of the District-based
congressional staff to ensure appropriate updates on OCSD's activities.
• Worked with Representative Gary Miller and his staff to successfully
ensure that funding commitment by FEMA to provide almost $1 million in
disaster assistance to OCSD for costs associated with SARI Line repairs
would not be reprogrammed for other disaster relief efforts (i.e., Katrina).
• Worked with Representative Gary Miller to seek authorization of long-term
secondary funding within the WRDA bill.
• Met with Representative Gary Miller and Senators Dianne Feinstein and
Barbara Boxer's staff to discuss SARI Line upgrade and rehabilitation
needs. Secured agreement by staff to work with OCSD to seek
congressional authorization to address needs during next session of
Congress when Water Resources Development Act is likely to be
debated.
• Supported (and attended) OCSD in development and implementation of
Representative Gary Miller staff tour of SARI line that led to strong
commitment of support for SARI Line initiative.
• Secured understanding from Senate Committee on Environment and
Public Works to consider amending infrastructure funding bill to identify
OCSD circumstances as eligible for federal grants assistance under new
Clean Water Act funding program contained in Senate SRF bill.
• Developed talking points and issue papers for use with congressional
delegation by OCSD Board and OCSD staff during District-based
meetings.
• Monitored and reported on status of authorization and appropriations for
GWRS project.
• Provided periodic written updates on activities in Washington.
ACTIVITIES FOR 2006
As discussed below plans and speck steps are underway to address the lack of
funding and to maintain progress on funding for the secondary treatment
program that has currently received almost $2 million in federal support over the
past two and a half years.
The upcoming year will both be challenging and promising for OCSD. First, the
delegation will have a new Member, replacing former Member Chris Cox.
Second, there is a distinct possibility that Representative Ken Calvert may be
selected to fill a vacancy on the Committee on Appropriations providing OCSD
with a Member sitting on the all important spending committee. With the
establishment of two key priorities, funding for secondary treatment and
replacement of the SARI line, OCSD has chosen a major leadership role in
environmental stewardship in Orange County. With Congress poised to consider
legislation (W RDA and flood protection)during 2006, OCSD should be able to
make significant progress in both funding program needs and authorizing long
term assistance for both secondary treatment and the SARI Line.
Representative Gary Miller will continue to exercise leadership on the SARI Line
in his capacity as the senior California Republican on the key Committee on
Transportation and Infrastructure. We will continue to work with Representative
Ken Calvert (R-CA) and his staff to ensure that OCSD's funding priorities are
clearly appreciated in anticipation of his possible appointment to the Committee
on Appropriations recognizing his commitment to water quality infrastructure
needs. Unless there are unanticipated additional congressional reorganizations,
OCSD will enjoy an earlier and stronger start in the appropriations process,
particularly in the Interior, Environment and Related Agencies bill that funds
Clean Water Act earmarks.
Among the key activities that we anticipate initiating after receiving Steering
Committee approval are:
• Enhancing OCSD's legislative liaison network with special emphasis
placed on OCSD's newest Member(yet to be determined at this writing).
• Arranging for a congressional delegation staff(and selected Members)
visit to OCSD, if appropriate, to tour facilities and learn about the important
issues OCSD is addressing to improve water quality.
• Filing requests with the congressional delegation seeking funding of the
secondary treatment project.
• Arranging for meetings between OCSD Board Members and key
California Members who sit on the Committee on Appropriations including
Chairman Jerry Lewis, and Congressman John Doolittle and Senator
Dianne Feinstein.
• Organizing an early 2006 Washington visit by OCSD delegation to discuss
federal priorities with the congressional delegation and other key Members
of Congress and if appropriate federal agency officials.
• Developing legislative recommendations for Representative Gary Miller
related to the authorization of a legislative program to repair and
rehabilitate the SARI Line.
• Monitoring legislative initiatives related to infrastructure funding and
working with Senators Dianne Feinstein and Barbara Boxer to carry
legislative recommendations to authorize grants assistance for the
upgrading of secondary treatment facilities at OCSD as part of any Clean
Water Act SRF reauthorization bill.
• Providing OCSD with periodic written updates on legislative and/or
regulatory developments that may impact OCSD operations or federal
agenda of initiatives.
• Assisting OCSD with NEPA compliance for secondary treatment projects
funded by the State and Tribal Assistance Grant.
ES:
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M A Y E R
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December 2, 2005 Mayer,Brown,Rare 3 Maw LLP
2 Park Plans
Suie100
Irvine,CA 92 %5904
Mr. Bob Ghirelli Men Tei(949)794-r260
PO Box 8127 Main Fax(949)679-9nil
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Fountain Valley,Ca 92728
Bs Baugh
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Dear Bob:
Pursuant to your request,the following is a brief description of work that we were involved on
behalf of Omnge County Sanitation District for the time period from September of 2004 to
September 2005.
The overall scope of our work relates to general consulting and legislative advocacy. To that end,
we participate in weekly conference calls with the Sanitation District to discuss policy agendas
and to obtain direction from the Sanitation District for our legislative activities. In addition,we
provide regular communications with Sanitation District staff on a variety of topics.
Overview
The Governor's "Year of Reform" State of the State speech in January established the tone for
the 2005 legislative year. Proposed reform bill packages were introduced on teacher tenure and
merit pay, state budgeting and financing, pension issues and re-districting. Ultimately, the
Governor and the Legislature could not agree on bills and initiative efforts were launched on
several issues including teacher tenure, state spending and redistricting. The Legislature
adjourned the first year of its two-year session with a whimper. It was clear to Capitol insiders
that more legislative attention was focused on the upcoming potential fall election than the
business before the Legislature. In mid September, Republicans and Democrats faced off in a
special election to fill the vacancy in the competitive 53r°Assembly District(Torrance/Redondo
Beach) upon the death of Mike Gordon. Assembly Member Ted Liu will replace him within the
Democratic caucus in January. More importantly, the Democratically held Legislature was in a
virtual war with the Governor over several initiatives on the November special election ballot.
As a result, many of this year's key issues were killed in the Legislature, vetoed by the Governor,
or simply pushed off until next year. For example,the Legislature rejected two of the Governor's
nominees for high-ranking administrative positions, killed his bill on solar energy, and declined
to take up several tribal gaming "compacts." Returning the favor, the Governor vetoed the
Democrats' bills on same-sex marriage and driver's licenses for undocumented immigrants.
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Mr. Bob Ghirelli
December 2, 2005
Page 2
In addition to the Ted Liu special election, Congressman Chris Cox was nominated by the
President and confirmed by the Senate as Chairman of the Securities and Exchange Commission.
Thus, a vacancy was created in the 48' Congressional District requiring yet another special
election. Senator John Campbell was the big winner in the primary race in this safe Republican
seat and he is expected to easily win the General Election to be held on December 6, 2005.
The Special Election
In September the Governor officially announced his run for re-election in 2006. Linking his re-
election efforts to several initiatives on the November 8 special election ballot, the Governor
described his vision as a three-part process of"recovery, reform and rebuilding." Basically, the
Governor described the economic and policy changes achieved in the first two years of his
administration as a "recovery" effort. The "reform" he spoke of was in the form of supporting
four specific initiatives on the November ballot:
Prop. 74—Public school teachers would receive tenure after five years instead of
the current two years.
Prop. 75—Public employee union dues would not be able to be used for political
contributions without expressed consent of the member.
Prop. 76 — The "Live Within Our Means" Act set spending limits based upon past
revenues, gave the Governor power to reduce spending(including mandates)
mid-year to prevent budget deficits, and altered Proposition 98 education
funding formula.
Prop. 77—Required a panel of retired judges to draw legislative and congressional
district boundaries.
In addition to these four initiatives,four other measures appeared on the special election ballot as
well. In the final weeks of the campaign, the Governor formally announced his support for
Proposition 73, which required teens to notify their parents or a court before getting an abortion.
The Governor did not formally announce support or opposition for the other measures. All
measures finally lost November 8 at the ballot box.The Governor has signaled his intent to work
with the State Legislature in the coming session to craft compromise reform proposals, but some
Capitol insiders expect to see a much more aggressive push by Democrats on the legislative front
when the Legislature returns to Sacramento in January.
Mayer, Brown, Rowe& Maw LLP
Mr. Bob Ghirelli
December 2,2005
Page 3
State Budget
When California voters rejected the Govemm's budget reform measure in November it left the
fiscal status quo intact, which means the "budget gap" will continue to grow. California is still
obligated to spend roughly five to seven percent more than its revenue system can produce, even
during a prosperous economy. Over the last five years despite steadily increasing revenues and
borrowing tens of millions of dollars deficits have mounted. The Democrats refuse to entertain
spending cuts and the Republicans refuse to consider tax increases.
The Legislature's independent budget office has estimated the state would need to spend $94
billion in 2005-06 to cover the obligations of current law,but revenue is forecasted at about$88
billion. These numbers may change since the state appears to be experiencing an increase in
revenue growth in the current year. In fact, the Legislative Analyst last week released its long-
term forecast for the state's fiscal picture. The LAO projects that the state will end the current
fiscal year with a positive balance of about $5.2 billion. The LAO also projected that the
ongoing,structural shortfall will shrink to$4 billion in the 2006-07 budget year.
The controversy around education funding still exists. The Governor approved a $3 billion
increase in school financing for 2005-06, but refused to give the schools the other $3 billion the
education community believes he promised them in the prior budget deal. In the aftermath of the
November election, the Governor promised to restore as much of the disputed school money as
possible and to work with the Legislature to determine if the funds can be found to accomplish
that.
However, the local government deal that came together in 2004 effectively insulates the
Sanitation District from being raided in the future to solve this structural deficit. While the State
retains the right to borrow (with specific restrictions) from local government in the future, the
key is that kcal government will now get repaid.
Urban Runoff
Apart from the budget battles, limited progress was made on ACA 13 which would amend the
constitution to allow local governments to access fees for the purpose of treating urban runoff.
ACA 13 was supported by the Governor's office but it had limited support among Republicans.
Thus, ACA 13, like ACA 10 the year before is stalled.Again, the bottom line is that the Orange
County Taxpayers Association and the Howard Jarvis folks have two primary problems with the
constitutional amendment. First, the science behind the causes and effects of urban runoff are ill
defined. Second, unlike the narrow expectations in the constitution for services like water and
sewer,these taxpayer groups fear that local government will eventually yield to junk science and
run up massive tax increases to pursue questionable solutions that advance political agendas.
The challenge is still in local government's court to demonstrate why urban runoff is more akin
to water and sewer services where the scope of the service narrow the risk of runaway fees is
remote.
Mayer, Brown, Rowe & Maw LLP
Mr. Bob Ghirelli
December 2,2005
Page 4
Boundaries for Regional Boards
In order to develop a county-wide urban runoff policy, the Sanitation District continues to
explore the possibility of legislation that would place all of Orange County into the Santa Ana
Region. We drafted legislation and secured Mimi Walters to be the author. However,
considerable disagreement remains from South County cities as to whether this was good policy.
Thus, we have held off pursuing this legislation until South County cities can come to an
agreement on this issue.
Biosolids
Similar to 2004, we placed a great deal of emphasis on biosolids legislation. Last year we used
AB 1427 (Maddox) to place pressure on the State Water Board to adopt statewide standards on
biosolids through a General Order. While their efforts were successful, Senator Florez carried
legislation this year SB 926 to prevent the importation of biosolids into Kern County. This
legislation was not only detrimental to the Sanitation District because the Sanitation District
transfers biosolids to Kem County, this legislation would have the unfortunate effect of
encouraging other counties to adopt similar bans. In the end, we were able to kill SB 926.
However, Senator Florez went and qualified an initiative for the ballot that would have the same
affect as the legislation if it is passed by the voters of Kem County.
Senator Florez also authored SB 120 which ostensibly deals with statewide standards for
biosolids. It remains to be seen whether Senator Florez will pursue SB 120 if his local measure
passes. Nonetheless, we are currently working with Senator Florez on an overall statewide
strategy for biosolid application.
It has been a pleasure to serve the Orange County Sanitation District. Should you need any
further information, feel free to call.
Sincerely,
Scott Baugh
T
P�ownsenN�
MEMORANDUM
To: Board of Directors
Orange County Sanitation District
From: Christopher Townsend, President
Sean Fitzgerald, Director, Southern California
Bridget Hennessey, Client Service Associate
Date: November 23, 2005
Subject: Summary of 2005 Grant/Legislative Activities and Outlook for 2006
Grant Funding Su000rt
Townsend Public Affairs, Inc. serves OCSD in both grant support and legislative advocacy capacity,
working directly with staff to maximize the District's efforts to secure public funding for capital projects,
and advance key policy initiatives. Within this scope of work, we perform the following functions:
• Identification of funding opportunities appropriate to the District's capital projects.
• Direct engagement with legislative leadership, agency leadership and staff, and other
stakeholder in the establishment of criteria for new grant programs.
• Preparation of project summaries and other communications promoting the project to
legislators and policymakers, including coordination of support letters.
• Continuous proactive engagement with the staff of the State Water Resources Control Board
throughout the development of the Consolidated Grant Program.
• Proactive engagement with the Governor, legislative leadership, agency leadership and any
other officials relevant to the ultimate award decision.
• Participation in weekly conference calls with OCSD staff, board members and the lobbying
team to ensure close coordination on all legislative and policy initiatives.
• Development of communications and advocacy strategies designed to advance OCSD's policy
positions and gather support among sister agencies, statewide associations, key local leaders
and other relevant stakeholders.
• Direct engagement with the Governor's administration, legislative leadership and the Orange
County delegation on policy matters.
TPA maintains communication with OCSD staff and remains up to date on the breadth of the District's
capital project needs. This allows our team to quickly match these projects with potential funding
sources and work efficiently with staff to maximize resources. The following is a summary of the grant
support and legislative efforts pursued in conjunction with OCSD staff in the past year:
• SARI Line:
Status/2005 Accomplishments
✓ This project is ready to move forward and is an excellent candidate for state grant
funding. The State Water Resources Control Board Consolidated Grant Program will
begin accepting applications for its funding programs within the next month and is
being targeted as a likely funding source.
✓ TPA has been working in concert with OCSD staff, as well as Regional Water Quality
Control Board staff to re-establish the project's standing and priority within the region.
✓ Additionally, as recently as November 3&, TPA has participated in public workshops
conducted by the State Water Resources Control Board on the development of the
Consoidated Grant Program, including the establishment of evaluation criteria.
Strategy for 2006
1. Continue gathering political support within the Santa Ana Watershed for the project.
2. Support OCSD staff and grant consultant in the drafting and submittal of an application
for the inclusion of SARI realignment project among the projects invited to submit full
proposals in early spring of 2006.
3. Advocate for maximum funding level during the evaluation period for the Consolidated
Grant program, which is due to wrap up during the summer of 2006.
• Statewide Infrastructure Bond
Status/2005 Accomplishments
✓ TPA has been working throughout 2005 with authors of major statewide bond initiatives
that hold tremendous potential for funding of OCSD capital projects, including:
• SB 153 (Chesbro) — A $3.5 billion resources bond similar to Proposition 40,
though with considerably greater funding for water projects than its
predecessor.
• Senate President Pro Tern Don Perata introduced SB 1024 which is entitled
the Safe Facilities, Improved Mobility, and Clean Air Bond Act of 2005. The
current public version of this bond would provide $10.275 billion to
significantly improve transportation, housing, ports, and various related
infrastructure needs. There are already several more recent versions in draft
forth that include many additional funding streams and the Pro Tern and his
team have basically invited local agencies from around the state to submit
heir funding needs and ideas.
• Assembly Speaker Fabian Nufiez, who had already actively embraced SB
153 (Chesbro), a $3.5 billion parks/resources bond similar to the Proposition
40 2002 State Parks Bond, is now adapting his focus to a broader,
infrastructure-related bond. Speaker Nunez' effort is apparently more
focused on school facilities and housing. No estimates have been made
available about the possible size of the measure, but it is anticipated to be at
least as sizable as Sen. Perata's measure.
✓ With both Senate President Don Perata and Speaker Nunez embracing significant
investment in infrastructure, the recent announcement of Governor Schwarzenegger's
support for$50 billion or more in bonds to fund infrastructure investment creates a truly
exceptional opportunity for a bipartisan consensus that could make this significant
opportunity a reality.
Strategy for 2006
1. Given the deadlines that must be met for inclusion on the June 2006, the Legislature
and the Governor must act by late January to craft an infrastructure bond proposal.
2. TPA has been working closely with Senator Perata since the introduction of SB 1024,
and also with Speaker Nunez, and we have encouraged OCSD to prepare brief
summaries of priority capital projects that could be promoted for inclusion in the
eventual bond vehicle that is negotiated among the leadership in Sacramento.
3. TPA will actively disseminate and promote the OCSD Infrastructure White Paper to key
legislators and administration officials and advocate for the inclusion of OCSD projects
in the language of the bond legislation.
State Government Relations
OCSD has established itself as a key voice in policy matters affecting water and wastewater
operations on a statewide level, particularly in the areas of biosolids processing, special district
finance and governance and water recycling. The past year has been active in each of these areas.
The following are some of the significant policy issues we have worked on in the past year:
• AB 1234 (Salinas) and SB 393 (Ortiz) — Continuing her push for reform of special
district governance, Senator Ortiz again introduced a sweeping reform bill that was
widely opposed by special districts statewide. As an alternative, Assemblyman Salinas
introduced AS 1234, a measure that emphasizes policies adopted by special districts
and encourages enhanced communication with the public. Senator Ortiz' measure
failed once again in its first committee, but Assemblyman Salinas's bill was passed by
the Legislature and signed by the Governor, which should resolve the need for further
reform for the foreseeable future.
• State Budget—This past year saw the second year of the property tax shift that was
negotiated in 2004 with cities, counties and special districts. Though this arrangement
disproportionately impacted enterprise special districts, this is slated to be the last year
of the shift, with Proposition 1A protections kicking in thereafter to provide some
measure of protection for local revenues. There are, however, two areas of potential
vulnerability that we have monitored over the past year and will continue to work on
going forward:
1. Special District "Reserves" — Although few, if any, special districts have
actual cash reserves that are not dedicated to debt service or some other
purpose, the threat of an effort by the Legislature to access these funds
remains a possibility. It is not clear exactly how such a raid could be
conducted, but an ongoing budget deficit on the state level combined with a
dearth of options left to address it, provide an environment in which
"creative" revenue options could surface.
2. Proposition 1A Protections — While Prop. 1A protects the local revenue
amounts at the county level it does NOT speak to the distribution within
each county to provide spec protection to those allocations. As such,
legislators seeking funding for a specific local government-related initiative
could seek to re-allocate funding distribution among cities, counties and
special districts. This approach has already been attempted in two failed
bills this past year, and should be vehemently opposed if it should re-
surface.
1. SB 926 (Florez) —While this bill remained in the Legislature at the end of the session,
it is still eligible to be re-considered when the Legislature reconvenes. Perhaps more
important, the local voter initiative effort led by Sen. Florez in his home district
represents a significant obstacle to both existing biosolids operations in the Central
Valley as well as to the overall development of biosolids policy statewide. TPA has
worked in concert with the OCSD lobbying team throughout the year on both the
legislative effort, as well as local efforts with key policymakers in Kern County. This
issue will certainly be among the top priorities for the District in 2006.
Federal Government Relations
Through coordination on the weekly OCSD conference calls, TPA has capitalized on opportunities to
support the ongoing efforts of the OCSD federal lobbying team in specific, focused ways. Over the
past year, this has included:
• Direct interaction with Senators Dianne Feinstein and Barbra Boxer, and
Congresswoman Sanchez and their respective staffs in support of OCSD funding
requests.
• Engagement with State Senator John Campbell, the likely replacement for
Congressman Christopher Cox, and Senator Campbell's campaign team.
While the federal lobbying team would certainly be in a better position to forecast priorities for 2006,
TPA remains committed to leveraging our relationships with local elected officials and staff on
OCSD's behalf.
Local/Reoional Issues
Because of our location in Orange County and our relationships with local leaders, TPA has lent
support to OCSD initiatives within the County and the Santa Ana Watershed region since our work
began with the District. Over the past year, that has included work on an effort to promote
consideration of a change in the boundaries of the Santa Ana and San Diego Regional Water Quality
Control Boards that would put Orange County wholly into one region. As it stands, south Orange
County remains in the San Diego Region, while the remainder of Orange County is in the Santa Ana
Region. Placing Orange County entirely within one board's jurisdiction could lead to increased
efficiencies with regard to planning and regulatory compliance.
While there was general support and understanding for this concept among many of the stakeholders
to whom we addressed the issue, there remain some concerns about how to functionally effect such a
change, particularly with ongoing consideration of permits and other regulatory issues.
OCSD Grant Program - Cost/Benefit
Analysis
(Nov. 2002 to Oct. 2005)
$5,000,000 $4,629,364
.....................................-....-.-.-...._--------_...._._.___.____.......__. Ellis Pump Station Replacement
�-Agreement 1-$40,000
-Agreement 2-$12,000
Obtained by OCSD staff
$4,000.000 ________..__-_.............
_SARI Emergency Repairs Project
Phase 11-$1,612,000
Obtained by OCSD staff
S3,000000 __.. -._ _..__-_ ... ......... .
SARI Emergency Repairs Project-
-Phase/-$915,364
Obtained by OCSD staff
$2,000,000 - -------...._..._............_.-_-_...-___-_.-.__.................. FOG Control Study-$250,000
Obtained by OCSD staff and Townsend
$766 47� Secondary Treatment-2005
Grant Consultants- $800,000
$1,000,000 .........$84,225..................................... Obtained by ENS Resources
Legislative Advocates - -_- Secondary Treatment-2004
$505,000 -- - - $1,000,000
$G OCSD Laba-$177,245 _ Obtained by ENS Resources
Costs Grants
Rev.10124/05
Costs of Grant Program Benefits of Grant Program
OCSD Labor: Awarded Grants Cagreementnol yat5neft"d)
Labor Breakdown by Grant PNoct: Grant Project: (Awarded by) Amount:
Project Wages
•Grant Administration(general,program-vAtle admin.and Ellis) 97,817.92 1. Secondary Treatment(2004) •$1,000,000
•Secondary rreabnent 23,652.40 (EPA State& Tribal Assistance)
•FOG Control StudyProject
40.622.28
14 2. Secondary Treatment(2005) "$8001000
-SARI Repairs Project(FEMA) 616.42 (EPA State& Tribal Assistance)
-SARI Repairs Project(NRCS) 11,018.42
-Legislative Advocacy(staff only) 3,202.97 3. FOG Control Study $250,000
Total Labor Costs by Project $177.245.13 (SWRCB)
Labor Breakdown by Department:: 4. Ellis Pump Station Replacement(Phase 1) $40,000
Department Hours wages (U.S. Bureau of Reclamation)
•Finance 237.5 9.193.64 5. Ellis Pump Station Replacement(Phase 2) $12,000
•Technical Services 5155 147.842.60 (U.S. Bureau of Reclamation)
•Engineering 50 2.012.48
•Information Technology 36 1,362.12 6. SARI Emergency Repairs Project •$915,364
•Public AOalre 631 15,734.40 (FEMA)
•Human Resources 83 1,099.68 7. SARI 2005 Emergency Repairs Project $1,612.000
Total labor Costs by Hours and Wages $177,245.13 (Natural Resources Consewation Samoa)
Total Labor Costs: 6,192.5 $177,245.13
Total Benefits — Awarded to Date: $4,629,364
Legislative Advocates:
(Lobbyists,Jan, 2003-present prices have changed since 2003)
•Federal-ENS Resources $10,000/month
•State -Townsend Public A9alm $5,0001nonth
•State-Mayer,Brown,Rowe a Maw,LLP $5,000knonth
Total Grant Legisladve Advocates(35 months):$505,000
Grant Consultants:
•CH2M Hill(NEPA work) $29,100
•IPMC(Secondary efforts) $49.000
•DSB Engineering(Debbie Bums.Grant Consultant) $6,125
Total Grant Consultant Costs: $84,225
Total Costs of Grant Program to Date: $766,470
Rev. 10/24/05
STEERING COMMITTEE Meeting Date To Bd.of Dir.
wzvos
AGENDA REPORT Item Number Item Number
e(c)
Orange County Sanitation District
FROM: James D. Ruth, Interim General Manager
Originator: Gail Garrett, Committee Secretary
SUBJECT: January Agenda Items for Consideration by Working Committees
GENERAL MANAGER'S RECOMMENDATION
SUMMARY
The Working Committees will not be meeting in January.
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
STEERING COMMITTEE MeebngDate To ad.ofDir.
12/21/05
AGENDA REPORT Item Number Item Number
s(d)
Orange County Sanitation District
FROM: James D. Ruth, Interim 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 December 21, 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 December 21,
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. Authorize the General Manager to complete an air pollutant emission
reduction credit exchange with Natsource LLC for the exchange of up to
76 pounds per day of SOx with an equivalent amount of pounds per day of
NOx or CO according to the market price.
END OF CONSENT CALENDAR
10. Consideration of items deleted from Consent Calendar, if any.
COMMITTEE REPORTS AND RECOMMENDED ACTIONS
11. STEERING COMMITTEE
Consent Calendar
a. Order draft Steering Committee Minutes for the meeting held on
November 16, 2005, to be filed.
Non-Consent Calendar
b. Approve the 2006 Legislative Agenda and authorize staff to take action on
legislation consistent with the policy statements contained in the
Legislative Agenda.
C. Authorize renewal of contracts with ENS Resources at$10,000/month;
Mayer, Brown, Rowe & Maw at $5,000/month; and Townsend Public
Affairs 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.
d. Review and consideration of agenda items considered by the Steering
Committee re the December 21, 2005 meeting.
e. 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 December 15, 2005, to be filed. (Minutes to be distributed at 12/21/05
Board Meeting.)
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
OOMTS)
OMTS Consent Calendar
a. Order draft Operations, Maintenance and Technical Services Committee
Minutes for the meeting held on December 7, 2005 to be filed. (Minutes to
be distributed at 12/21/05 Board Meeting.)
b. Approve Amendment No. 3 to the Consulting Services Agreement with
Brown and Caldwell Consulting, providing for additional consulting
services in connection with the Santa Ana Regional Water Quality Control
Board Waste Discharge Requirements, extending the time period from
December 31, 2005 to June 30, 2006, at no additional cost for the total
amount not to exceed $1,430,000.
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C. (1) Establish a budget for Replacement of Linings in Digesters F and G,
Job No. SP-117, in the amount of$2,600,000 from District reserves; and,
(2)Authorize the General Manager to competitively bid and subsequently
award a contract in an amount not to exceed $2,180,000 for replacement
of liners to the lowest responsive and responsible bidder.
d. Ratify Change Order No. 1 to Purchase Order No. 101494 OA, issued to
Partners Consulting for JO Edwards Help Desk Support, Specification
No. S-2002-110BD, authorizing an addition of$25,434, increasing the
total contract amount to $205,434, for additional expenses incurred during
the contract period of April 1, 2004 to March 31, 2005.
e. Receive and file Source Control Annual Report.
f. Receive and file 2004-05 Operations and Maintenance Annual Report.
Non-Consent Calendar
g. 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 December 1, 2005 to be filed.
b. Ratify Change Order No. 6 to Trickling Filter Rehabilitation and New
Clarifiers, Job No. P1-76, with J.R. Filanc Construction Company, Inc.,
authorizing an addition of$489,920. increasing the total contract amount
to $34,709,778.
C. (1) Ratify Change Order No. 7 to Secondary Treatment Facilities Process
Upgrades at Plant No. 2, Job No. P2-47-3, with Morrow-Meadows
Corporation, authorizing an addition of$94,137, a time extension of 99
calendar days, increasing the total contract amount to $6,011,055, and
extending the contract completion to February 3, 2006; and,
(2)Approve a budget increase of$1,000,000 for a total budget of
$10,219,532 to cover the staff cost for construction support.
d. Ratify Change Order No. 10 to Effluent Pump Station Annex, Job No. J-
77, with J.F. Shea Construction, Inc., authorizing an addition of$33,053
and 23 calendar days, increasing the total contract amount to
$44,293,254.
e. Ratify Change Order No. 14 for Area Classification Study Implementation
Plan, Plant Nos. 1 and 2, Job No. J-35-2, with J. F. Shea Construction,
XWeplMpmda\Slenlrq�IZIVIM W Rd)usw AF oexmmrBeero-v.l eoc
aemm dram Page 3
Inc., authorizing an addition of $365,822, increasing the total cOntr"k
amount to $17,661,175.
f. Ratify Change Order No. 24 to Primary Clarifiers 16-31 and Related
Facilities, Job No. Pt-37, with Margate Construction, authorizing an
addition of$97,562, increasing the total contract amount to $71,972,028.
g. (1)Approve a budget amendment of$260,000 for Sunflower Pump Station
Drive Replacement, Job No. P1-62, for a total budget of$1 ,065.000;
(2) Ratify Change Order No. 2 for Sunflower Pump Station Drive
Replacement, Job No. P1-62, with Ark Construction Co., authorizing an
addition of$172,555 and a time extension of 1,127 calendar days,
increasing the total contract amount to $602,954; and,
(3) Accept Sunflower Pump Station Drive Replacement, Job No. P1-62, as j
complete, authorizing execution of the Notice of Completion and
approving the Final Closeout Agreement.
h. (1) Approve a budget amendment of$275,000 for Peak Flow
Management, Job No. J-67, for a total budget of$3,668,000:
(2) Ratify Change Order No. 1 to Peak Flow Management, Job No. J-67,
with Margate Construction, Inc., authorizing an addition of$128,298 and
325 calendar days, increasing the total contract amount to $1,379,198;
and,
(3) Ratify Change Order No. 2 for an Adjustment of Schedule Quantities
authorizing a decrease of$6,500, decreasing the total contract amount to
$1,372,698.
i. Approve Professional Services Agreement with EarthTech for engineering
services for Truck Wash and Dewatering Beds at Plant No. 1, Job No. P1-
106, for an amount not to exceed $237,676.
j. Approve Amendment No. 3 to the Professional Services Agreement with
AKM Consulting Engineers providing for additional engineering services
for Gisler-Redhill Trunk Improvements, Reach "A", Contract No. 7-36;
Orange Trunk Improvements, Contract No. 7-39; and Gisler-Redhill/North
Trunk Improvements, Contract No. 7-41, for an additional amount of
$41,527, increasing the total amount not to exceed $987,401.
k. (1)Approve Plans and Specifications, and Addendum No. 1 for Access
Improvements for Plant 1 Electrical Equipment, Job No. FE02-59, and
Access Improvements for Plant 2 Electrical Equipment, Job No. FE02-60,
on file at the office of the Board Secretary;
(2) Receive and file bid tabulation; and,
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(3) Award a construction contract to Morrow-Meadows Corporation for
Access Improvements for Plant 1 Electrical Equipment, Job No. FE02-59;
and Access Improvements for Plant 2 Electrical Equipment, Job No.
FE02-60, for an amount not to exceed $313,200.
I. Approve a budget increase of$700,000 for construction for a total project
budget of$1,860,000 for Gisler-Redhill Trunk Sewer Relocation— Phase
1, Contract No. 7-32-1.
M. (1)Approve a budget increase of$800,000 for a total budget of
$3,600,000; and,
(2)Authorize the General Manager to solicit bids and award a construction
contract for the mitigation resulting from the construction of the Santa Ana
River Interceptor 2005— Emergency Repairs from 10,000 cfs Release,
Contract No. 2-41-4, for an amount not to exceed $500,000.
n. (1)Approve a Memorandum of Understanding with Coast Community
College District in connection with the Replacement of the Rocky Point
Pump Station, Contract No. 5-50, in a form approved by General Counsel;
and,
(2)Authorize the General Manager to negotiate with Coast Community
College District concerning the sale, lease, or transfer and eventual use of
the unused portion of the Rocky Point Pump Station property at 1700-
2000 West Coast Highway, and to include approval of a short-term lease
with the College District with the first right of refusal with the option to
extend the lease term or purchase the land, as requested by the PDC
Committee.
o. (1) Approve a budget increase for an additional $10,000,000 for Bushard
Trunk Sewer Rehabilitation, Job No. 1-2-4, for a total of$63,580,000; and,
(2)Approve plans and specifications for Bushard Trunk Sewer
Rehabilitation, Job No. 1-24A, on file at the offices of the Board Secretary.
Non-Consent Calendar
P. 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 December 14, 2005 to be filed. (Minutes
to be distributed at 12121105 Board Meeting.)
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b. Receive and file report of General Manager approved purchases in
amounts exceeding $50,000 in accordance with Board purchasing
policies.
C. Approve a one-time only non-base building payment for the Director of
Technical Services in an amount not to exceed $2,679 for his service as
Acting General Manager.
d. Adopt Resolution No. OCSD 05-28, Declaration of Official Intent to
Reimburse Certain of the Sanitation District's Capital Reserve Funds for
Expenditures Made in Advance for FY 2005-06 Capital Improvement
Projects from Proceeds of a Future Long-Tenn Financing.
e. Adopt Resolution No. OCSD05-29, amending Resolution No. OCSD 98-
33, amending Human Resources Policies and Procedures Manual.
FAHR Non-Consent Calendar
f. Consideration of items deleted from FAHR Consent Calendar, if any.
16. GWR SYSTEM STEERING COMMITTEE (GWRSSC)
GWRSSC Consent Calendar
a. Order Joint Groundwater Replenishment System Steering Committee
Minutes for the meeting held on November 14, 2005 to be filed. (Minutes
to be distributed at 12/21/05 Board Meeting.)
GWRSSC Non-Consent Calendar
b. Consideration of items deleted from GWRSSC Consent Calendar, if any.
17. LEGAL SERVICES AD HOC COMMITTEE / STEERING COMMITTEE
a. Authorize Steve Anderson, OCSD Board Chair, to negotiate and enter into
an agreement with Woodruff, Spradlin & Smart for legal services, and
appointing Bradley R.Hogin as Principal General Counsel.
b. Convene in closed session if necessary to confer regarding appointment
of general counsel. (Government Code Section 54957(b)(1)
C. Reconvene in regular session
d. Consideration of action, if any, on matters considered in closed session
NON-CONSENT CALENDAR
18. (a)Approve Plans and Specifications for Electrical Equipment Refurbishment and
Protection, Job No. SP-81, on file at the office of the Board Secretary;
M WgHpaiWWMnV Cmninne2WS1lNY105 SC&a1�sN20.s lm 0..wnen Bmea.l.Cac
Page 6
(b) Receive and file bid tabulation and recommendation; and
(c)Award a construction contract to Helix Electric, Inc. for Electrical Equipment
Refurbishment and Protection, Job No. SP-81, for an amount not to exceed
$2,698,000.
19. Closed Session
PROJECT/CONTRACT COST SUMMARY
N/A
BUDGET IMPACT
❑ This item has been budgeted. (Line item: )
❑ This item has been budgeted, but there are insufficient funds.
❑ This item has not been budgeted.
® Not applicable (information item)
ADDITIONAL INFORMATION
NA
ALTERNATIVES
NA
CEQA FINDINGS
Not a project.
ATTACHMENTS
NA
99
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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