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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& //K, (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 n vew+v.�e.�u..,.y cw,mrcnwvc MnNea rw,..s.me STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and the Agenda for the Steering Committee meeting held on Wednesday, 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 www.ocee.wm maumy a9tlwas: NOTICE OF MEETING P0.Sax 8127 OF THE Fpun Valle,CA 92T28 812] STEERING COMMITTEE 92 atraet ioldna : 10844 Ellis Avenue ORANGE COUNTY SANITATION DISTRICT Fountain veney.CA 92708-7016 Mani WEDNESDAY, December 21, 2005 -5 P.M. Agantlea `Itis` DISTRICT'S ADMINISTRATIVE OFFICE Anaheim 10844 ELLIS AVENUE Brea Suene Perk FOUNTAIN VALLEY, CALIFORNIA 92708 gpresa Fountain Valley Fullarcon Garden G ava Huntington Enii d'vina A regular meeting of the Steering Committee of the Board of Directors of La Hi e La Paima Orange County Sanitation District will be held at the above location, date and Loa Alamitos time. Newport Seem Orange Placande Sena An Seal Beach Stanton IDcnn ifile Perk lbrba Linda ,aunty of Orwge emtarr omplace Goan Me. Mldway City Wttar olatritta Irroine Ranch H9depragenda\Steering Committee@005\12\SC Meeting Notice Form.i.doc 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 RVIephagendal5teedng Commit1eeQ005Vtoll Call Sheet Fmm.3.doo 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 MWANpMlelSYse,bq CanmllaslMAG MYwIaf Fpm.AOo[ STEERING COMMITTEE Meeting Dare To ad.0 Dir. 1 12 1105 No 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 HeaPiucadm,Sl—a eco—II.Vdos"r+izio5sceIaInRI,n ndP.drc Reosed'. IVM005 Page 1 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 H:We,ggv ,g[eenng Cumigee�AtZI=05 SCM Leo Ape ea MOW 12 005 Page 2 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 z I 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 x,ewwmw,rr�cm.xuezmsrn,aios semny+x_ ro��n.aac •,: , Page 1 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- �, 1 Page 2 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 nmmv,ommuiem.•cm..i•.zaosnr,n,os vemyea_inwwunaoc ae„. a. ,varzoos Page 3 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 HAW Zt��IZMlas_S"vw R-� R—. +aea Page 4 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: M:WepMgeMMSleenng Commlflee%2005%IZ122105 S(B)ENS Resources Fed Advitles for 2005.doc M A Y E R BROWN R 0 W E & M A W 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 wwa.maymNvwnmaw.mm Fountain Valley,Ca 92728 Bs Baugh sdlau9h®malwbmmrowe.mm 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. Berlin Bnsdeas Charlotte Chicago Cologne Frenklurt Houston London Los Angeles Ni Pab Alto Pads Washington,D.C. Independent Medw City Correspondent Jauregui,Navarre@ y Nader S.C. Mayor,Broad,Rain a Maw LLP operates in combination with our associated English landed[ability paMership in the offices;fisted!above. Mayer, Brown, Rowe& Maw LLP 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. M Weg WQMrda9Lenng Cg tteeVWWZ1221055 S(M List Of Aft for RceMber B ro-art d« Fexeed. WMAA Page 2 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, H WGPMgendalll nng cmminilee 1W rzlws sc 9(a)u9 aA2fi Ceom '8W� .,1ma ae. o a M. Page 4 (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.) KbwdBamW%te �nee�t MIM W Nd)un dnns iww aeremrear.Te Fpd. =a Page 5 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 $2,698,000. 19. Closed Session PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION NA ALTERNATIVES NA CEQA FINDINGS Not a project. ATTACHMENTS NA 99 H W�pMEal51uAn9 Cgrt IN IZ1Y!105$ Nd)Ust u1PRs W CttBmEer Bm r.79oc p:Wo Page 7 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