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HomeMy WebLinkAbout2006-04 MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, April 26, 2006, at 5 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday,April 26, 2006 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 David Webb, Huntington Beach Carolyn Cavecche, Chair, OMTS Committee Steve Weisberg, SCCWRP Darryl Miller, Chairman, FAHR Committee Tod Ridgeway, Chairman, PDC Committee STAFF PRESENT: Jim Ruth, Interim General Manager Nick Arhontes, Director of Regional Assets and Services Bob Ghirelli, Director of Technical Services Directors Absent: Jim Herberg, Director of Operations and Jim Silva, County Supervisor Maintenance David Ludwin, Director of Engineering Lorenzo Tyner, Director of Finance/Treasurer Lisa Tomko, Director of Human Resources Gail Garrett, Committee Secretary Juanita Skillman Ryan Wheeler (2) APPOINTMENT OF CHAIR PRO TEM FILED IN THE OFFICE OF THE SECRETARY No appointment was necessary. ORANGE MUNT�- nISTRICT MA 2 4 2006 (3) PUBLIC COMMENTS BY There were no comments by any member of the public. (4) REPORT OF THE COMMITTEE CHAIR Committee Chair Steve Anderson announced that Supervisor Silva and Dr. Ghirelli will attend the CASA conference in Squaw Valley tomorrow. Chair Anderson provided highlights of his meeting with Director Miller and David Ludwin where they 2' Minutes of the Steering Committee Page 2 April 26, 2006 discussed the Irvine Company's SARI line relocation alternative. He will also meet with County CEO Tom Mauk early in June to further discuss the SARI alternatives and funding. Jim Ruth, Director Miller, Herb Nakasone, and Dan Cozad will also attend. A trip to Washington DC is planned for Chair Anderson,Vice Chair Ferryman and Bob Ghirelli in May to meet with elected officials and their staff as part of the effort to pursue federal funding for secondary treatment and the SARI line. Chair Anderson announced upcoming standing committee meetings for May. (5) REPORT OF THE GENERAL MANAGER Interim General Manager Jim Ruth provided highlights of his monthly status report which was included in the Board package. He informed that two proposed rate increase options will be presented in the CIP report to the full Board tonight. Staff is developing a scope of work for conducting Independent Reviews to evaluate the efficiency and effectiveness of the CIP program. Barry Newton, Creative Management Solutions, has completed his work on the proposed Performance Appraisal System for EMT and managers and the Item is on tonight's Board agenda for approval. He Is currently developing the General Manager's new performance evaluation criteria and will present his report to the EMT, FAHR and full Board in June. Succession planning is progressing and training will commence in July. Director Cavecche will meet with Supervisors Campbell and Silva to facilitate the resolution of issues relating to the Orange Park Acres annexation. H�atinaton Beach new Warner Avenue Lift Station and sewers—As a follow up to the Mr. Ruth's Is tter of April 20 to the city and the October 2005 Steering Committee action on this topic, Nick Arhontes, Director of Regional Assets & Services, introduced David Webb, Deputy Director of Public Works from the City of Huntington Beach. Mr.Webb provided historical background Information on the facilities now under construction and the city's standing request to transfer the Lift Station and related sewers to the Sanitation District as regional facilities about one year after completion. Mr. Webb distributed handouts and answered Directors' questions. He explained the City is willing to fund OCSD's cost of legal and technical due diligence at this time and was open to possible change orders during construction to achieve compliance. Concern was expressed that this proposed transfer could set a precedent for future infrastructure transfers, and bring added operating costs, regulatory compliance and capacity issues,and risks. After considerable discussion, staff was directed at this time to provide the City with OCSD's latest engineering guidelines and standards for the city's review and use in analyzing how compatible their current design is. Nick will obtain and forward the info to Mr.Webb for city staff use. (6) REPORT OF GENERAL COUNSEL General Counsel Brad Hogin provided a memorandum summarizing two pending bills that would grant OCSD the authority to utilize the design-build process for public works construction projects. Minutes of the Stewing Committee Page 3 April 26, 2006 He outlined the four-step process and explained that SB 1431 would expand authorization for design- build contracts for all counties, cities, and special districts to procure for projects that cost a minimum of$2.5 million. Rep. Mimi Walter's office is carrying Assembly Bill 2580, sponsored by the Sanitation District,which provides design-build authorization solely for sanitation districts for projects that exceed $10 million, and is limited to best value procurement. (7) CONSENT CALENDAR ITEMS a. The minutes of the March 22, 2006 Steering Committee meeting were approved as drafted. END OF CONSENT CALENDAR (8) ACTION ITEMS None. (9) INFORMATIONAL ITEMS a. The Agenda Items scheduled to be reviewed by the Board's working committees in March were reviewed. b. The agenda items scheduled to be presented to the Board at tonight's meeting were reviewed. (10) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY a. Recommend to the Board to authorize the General Manager to sign the Southern California Coastal Water Research Project Office Lease Guarantee, in a form approved by General Counsel. Bob Ghirelli, Director of Technical Services, introduced Steve Weisberg of SCCWRP and presented detailed information on the negotiations with the landlord for SCCWRP's new office space in Costa Mesa. He and Dr. Weisberg provided answers to the Directors' questions. MOTION: It was moved, seconded and duly carded to recommend approval to the Board of Directors. b. Recommend to the Board to authorize execution of agreement with the Irvine Community Development Company re relocation of SARI Line and Mountain Park Sewer Line, in a form approved by General Counsel. After considerable discussion, it was recommended to consider this item at the May PDC Committee. (11) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. Minutes of the Steering Committee Page 4 April 26, 2006 (12) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (13) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, May 24, 2006 at 5 p.m. The next Board Meeting is scheduled for Wednesday, May 24, 2006 at 7 p.m. (14) CLOSED SESSION The Committee convened at 6:24 p.m. in Closed Session, pursuant to Section 54956.9(b), to discuss one matter. Minutes of the Closed Session are on file with the Board Secretary. Confidential Minutes of the Closed Session held by the Steering Committee have been prepared in accordance with Government Code Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. A report of the recommended actions will be publicly reported at the time the approved actions become final. At 7:00 p.m., the Committee reconvened in regular session. (15) ADJOURNMENT The Chair declared the meeting adjourned at 7:00 p.m. Submitted ppby: Gail Garrett Steering Committee Secretary H sC.MWO Tseov LAW OFFICES OF WOODRUFF, SPRADLIN & SMART A P R OF ESS IONA L COX FORA.TION r' & Jn/ (� .I MEMORANDUM Distributed at Steering Committee TO: Board of Directors Orange County Sanitation District FROM: Bradley R. Hogin, Esq. DATE: April 26, 2006 RE: Pending Design-Build Legislation This memo briefly summarizes two pending bills that would each grant OCSD the express authority to utilize the"design-build"process for public works construction projects. OCSD currently utilizes the traditional"design-bid-build" process. This traditional process has three basic steps: (1)the agency hires a design professional to prepare detailed construction plans and specifications; (2)the agency solicits bids from construction firms based on the detailed plans and specifications; and (3)the agency awards the contract to the lowest responsible bidder. "Design-build" is an alternative process whereby an agency contracts with one pre-qualified entity to perform both design and construction for one lump sum. Depending on an agency's statutory authorization,the agency may award a design-build contract based on the lowest bid or the best overall value to the agency, taking into account price, features, functions, life-cycle costs,and other relevant criteria. 1. Background: Existing Design-Build Authorization. State law imposes different public works construction requirements on different agencies. Most counties, for example, including the County of Orange, must follow the traditional design- bid-build process. These counties must separate the design and construction functions in different entities, and bid the construction portion based on detailed plans and specifications. (PCC §§20124; 20127; 20128.) To take another example,county water districts are not subject to any form of competitive bidding requirement. (Associated Builders and Contractors.Golden Gate Chanter v. Contra Costa Water District, 37 Cal.App.4a'466(1995).) Thus,county water districts may package design and construction services together. Under Public Contracts Code ('PCC") Section 20133,thirty specified counties are authorized to utilize the design-build process for public works projects that cost at least$2.5 million. PCC Section 20175.2 provides similar design-build authorization to eleven specified cities,except there is no cost limit. State agencies may utilize the design-build process under Government Code § 14661. County sanitation districts such as OCSD must award construction contracts in excess of $35,000 to the lowest responsible bidder. (PCC § 20783.) Thus, OCSD cannot award a design- build contract based on best value. While there is nothing in state law that expressly prohibits county sanitation districts from awarding a design-build contract based on the lowest bid, at the same time there are no statutes that expressly authorize such an approach. t 7t u Board of Directors April 26,2006 Page 2 Under Sections 20133 and 20175.2, the specified counties and cities may award a design build contract through the following four-step process: • Prepare a preliminary design; • Prepare a detailed request for proposal; • Pre-qualify design build entities; and • Award the contract. Authorized counties and cities may award design-build contracts under these statutes based on either the lowest responsible bid or the best value. Sections 20133 and 20175.2 both require that the local agencies report to the Legislative Analyst's Office regarding their design build experiences by December 1,2009. The Legislative Analyst most report on design build experiences to the Legislature by January 1,2010. Both statutes sunset on January 1,2011. 11. Proposed Legislation. A. SB 1431. SB 1431 would amend Sections 20133 and 20175.2 in a variety of ways. Expansion of Design-Build Authorization. Most importantly, SB 1431 would greatly expand authorization for design-build contracts by allowing all counties, cities,and special districts to use design build procurement for projects that cost at least$2.5 million. "Special district"as used in SB 1431 is defined as follows: (d) "Special district" means any agency of the state for the local performance of governmental or proprietary functions within limited boundaries. "Special district" includes a county service area, a maintenance district or area,an improvement district or improvement zone,or any other zone or area formed for the purpose of designating an area within which a property tax rate will be levied to pay for a service or improvement benefiting that area. . . . "Special district"does not include any agency which is not authorized to levy a property tax rate,except the Bay Area Pollution Control District. (Government Code Section 16271.) OCSD is a special district within the meaning of this provision, and thus would receive design-build authorization if AB 1431 were to pass. $2.5 Million Minimum Cost. As explained above, current law allows counties to use the design build method on projects that cost more that$2.5 million. There is no minimum cost limit for cities. SB 1431 would apply the $2.5 million minimum cost limit to cities and special districts. �traaan Board of Directors April 26,2006 Page 3 Pre-qualification. The current law requires local agencies to develop a procedure to pre- qualify design build entities by using a standard questionnaire developed by the local agency. SB 1431 allows local agencies to use the State Department of Industrial Relations' (DIR) prequalification questionnaire. This would be a useful change because the DIR prequalification questionnaire is not easily adapted for use in construction projects. Termination Date. The current law automatically terminates on January 1, 2011. If adopted, SB 1431 would extend the automatic termination date from January 1,2011 to January 1, 2017. The bill would adjust the deadlines for reporting information to the Legislative Analyst's Office. The Senate's bill analysis lists the following entities as registering support for this bill: • California Association of Sanitation Agencies • California Special Districts Association • Consulting Engineers and Land Surveyors of California • Design Build Institute of America • League of California Cities • Counties of Kern and Nevada • Cities of Buena Park, Coronado, Fremont,Placentia, Yucca Valley • East Bay Municipal Utility District The following entities are opposed to the passage of this bill: • Associated Builders and Contractors of California • Coalition for Fair Employment in Construction • International Federation of Professional and Technical Engineers Local 21 B. AB 2580. AB 2580 was authored by OCSD staff. The bill provides design-build authorization solely for sanitation districts. AB 2580 sets forth a four-step process for awarding design-build contracts that is similar to the process set forth in Section 20133. There are two key differences, however. First,AB 2580 would require that the award be based on best value as opposed to lowest bid. Second,under AB 2580,design-build authorization would only be available for projects that exceed$10 million. The current limit under Section 20133 is only$2.5 million. There is no committee bill analysis available for AB 2580, so I am unaware of any official support or opposition. u2[7444%1 SC Yp6�o6 ORANGE COUNTY SANITATION DISTRICT Distributed at /zU'/mstaering committee April 20, 2006 a411 p14I 96Z24n 1. 171419620 56 Bob Beardsley, P.E. .a«d.. Director of Public Works .111,,,aee,Ne; City of Huntington Beach Po B..6127 2000 Main Street FCuncian Valley.G 92728.8,27 P.O. Box 190 steel aeer„s; Huntington Beach, CA 29648 M44 E:us A.enue Foun 92709 70 6 SUBJECT: Possible transfer of new Warner Avenue Lift Station and related gravity and pressure sewers to Orange County Sanitation Ms.", District (OCSD) lysecies e cities Dear Bob: Anal Bras I would like to express my appreciation to you and Dave Webb for meeting Burris Pa. c,A,a.. with Nick Arhontes and me on Tuesday, April 18 to discuss how we can '°°"m VB"Br proceed with the City of Huntington Beach Lift Station. We believe that your Barren co. project does meet the criteria as a regulatory facility and, as such, it serves multiple agencies and should ultimately be served by our system. ,rnne La HaMa °°erns 1.4s A,am:wa s we e meeting, the Sanitation District does not have the NanP4rc Bsech funding to perform legal or technical due diligence for a project of this nature. oven°° Placenta Based on our discussion, it is my understanding that the City of Huntington S°"`°A. Beach would be willing to fund the cost of the legal and technical due Seal Beach Surmn diligence process in order to move this most important project forward. You rcare have also indicated that your legal counsel would prepare a draft working rrrna Linda agreement that would allow us to cooperatively initiate a detailed caantr at Dante investigation phase. This draft agreement would be coordinated with our legal counsel, Brad Hogin. ,anitary Districts a M, Your Lift Station project does present several legal, financial, technical, M"11", G.} operating and regulatory issues that need to be examined and ultimately Water Districts resolved prior to entering into this cooperative agreement. Our Board has previously expressed concern about assuming operational responsibility for your new Lift Station and has sought more data regarding long term risk and financial liability to the Sanitation District. It is our understanding that the Lift Station would be completed by May 2007 and that you desire to transfer that asset to our system approximately one year thereafter. Bob Beardsley, P.E. Page 2 April 20, 2006 It is my intent to present your request to initiate this cooperative effort to our next Board Steering Committee meeting on Wednesday, April 26 at 5 p.m. Your request will be presented as a verbal update to last October's action by the Committee. Should we receive a favorable response from the Steering Committee, we would agendize this report in the immediate future. Ultimately our full Board will need to take action on this request. This letter does not bind Sanitation District staff or our Board of Directors as an offer of acceptance to a potential transfer, however it expresses a willingness to work with your City to address the issues outlined in this letter with the hope that we can come to an amicable resolution that will be acceptable to both parties. Should you have any additional questions, do not hesitate to contact me at (714) 593-7110. You and your staff are also welcome to attend our Steering Committee meeting to participate in the discussion on this matter or respond to any questions that might arise. Sincerely, Zzlt- James D. Ruth, Interim General Manager JDR:gg H tdopNCmin\1IDtRUTH JAMESConee 200 200!L✓to 6esMeiey m HB lift On doc cc: Steve Anderson, Board Chair Jim Ferryman, Board Vice Chair Carolyn Cavecche, Chair, OMTS Committee Darryl Miller, Chair, FAHR Committee Tod Ridgeway, Chair, PDC Committee Jim Silva, Board of Supervisors Nick Arhontes, Director of Regional Assets and Services Bradley R. Hogan, General Counsel, OCSD David A. Webb, City Engineer, City of Huntington Beach urMNi � R-H-WIF nm , u"mm' 1 , .,tom � ..' •� � �. of Rim'= pia .. Mo'f'i ' � Y .n, 1 rill '*" oroposed Malewe I ka: ' - SD Sewer Unincorporated Orange County STATE OF CALIFORNIA ) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and the Agenda and Supplemental Agenda for the Steering Committee meeting held on Wednesday, April 26, 2006, was duly posted for public inspection in the main lobby of the DistricCs offices on Friday, April 21, 2006. IN WITNESS WHEREOF, I have hereunto set my hand this 26th day of April, 2006. �� Xj Penny Kyle, Secretary of the Bard of Directors of Orange County Sanitation District Posted: April 21, 2006, 12:00 p.m. By: L--)(( (�q'tiV-Z .- Signature H%d aaVa ISMne C millee�WFpm.Uoc REVISED SUPPLEMENTAL AGENDA STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CA 92708 REGULAR MEETING APRIL 26, 2006—5:00 P.M. Aaenda Posting: In accordance with the requirements of California Government Code Section 54954.2.this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Board 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 Board 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 dale. 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 Dishict Board Secretary's office at(714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Items Continued: Items may be continued from this meeting without further notice to a Committee or Board meeting held within five(5)days of this meeting per Government Code Section 54954.2(b)(3). Meetina Adioumment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code section 54955(posted within 24 hours). (10) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY a. Recommend to the Board to authorize the General Manager to sign the Southern California Coastal Water Research Project Office Lease Guarantee, in a form approved by General Counsel. b. Recommend to the Board to authorize execution of agreement with the Irvine Community Development Company re relocation of SARI Line and Mountain Park Sewer Line, in a form approved by General Counsel. HAepragenda\Steering Committse=06\04\042606 Supplememal agenda 2.doc STEERING COMMITTEE Meetlng 06 TG Bd.of D r.i 426/2006 4/26/2006 AGENDA REPORT Item Number Item Number _ SOa 26a Orange County Sanitation District FROM: Robert P. Ghirelli, D.Env., Director of Technical Services Originator: George Robertson, Senior Scientist SUBJECT: AUTHORIZATION FOR GENERAL MANAGER TO SIGN THE SOUTHERN CALIFORNIA COASTAL WATER RESEARCH PROJECT OFFICE LEASE GUARANTEE. GENERAL MANAGER'S RECOMMENDATION Recommend to the Board to authorize the General Manager to sign the Southern California Coastal Water Research Project Office Lease Guarantee, in a form approved by General Counsel. SUMMARY The Southern California Coastal Water Research Project (SCCWRP)was established in 1969 under a joint powers agreement (JPA) by five southern California wastewater ocean dischargers to study the effects of discharging treated effluent to the marine environment. SCCWRP and its Commission (on which the District has a representative) have identified the need to move to a new facility to better carry out their mission. As a JPA, SCCWRP is funded in four year increments, with the most recent extending to June 30, 2009. The proposed lease is for 10 years and the landlord has requested a guarantee in the event that the JPA is not renewed. The District has offered to provide this guarantee, with the provision that in the event of the dissolution of SCCWRP JPA that the District receives priority in any disbursements of SCCWRP assets. PRIOR COMMITTEE/BOARD ACTIONS SCCWRP JPA approved by the Board on December 15, 2004 (Resolution No. OCSD 04-29). 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) GR. „VWIWnG\a WN t0u)SCMRPA Rewaa:Ww pni Page 1 ADDITIONAL INFORMATION Financial Liability The District's finance staff has evaluated the potential financial liability. Their findings are: • The total lease payments for 12 years equal $4.8 million. This results in a net present value liability of$3.7 million when applying the Sanitation District's budgeted earnings yield rate of 4%. That would be the maximum exposure if SCCWRP defaulted on day one of the lease and the building was left empty for 12 years. However, if for some reason the JPA was not renewed in three years, the facility could be sub-leased minimizing potential losses. • SCCWRP recently approved a resolution granting OCSD priority distribution of SCCWRP's net assets in case of lease default. As of June 30, 2005, SCCWRP had current assets consisting of cash and accounts receivables, of$3,612,000. SCCWRP's total liabilities at June 30, 2005, were $2,060,000, resulting in total unrestricted net assets of$1,552,000. • Staff has reviewed the SCCWRP Audited Financial Reports for the years ended June 30, 2005, 2004, and 2003. All three years received unqualified opinions from the independent auditors, the highest level of opinion possible. In addition, staff obtained a Dunn & Bradstreet report on SCCWRP as of June 30, 2004, and SCCWRP received Credit Class and Financial Stress Class Scores of 1, the best rating that is given. SCCWRP also received a "prompt rating" on the Dunn & Bradstreet payment index scale. ALTERNATIVES NA CEQA FINDINGS NA ATTACHMENTS NONE. GA w H be00agenda151emng COmmlteeQW Mlltem 10(a)SCCWFP.E"c aee,aO Maaroa(.n) Page 2 STEERING COMMITTEE MeebngDate Tosa.orwr. 4/26/2006 9/2W2006 AGENDA REPORT Item Number Item Number 10(b) 26(b) Orange County Sanitation District FROM: Jim Ruth, Interim General Manager SUBJECT: RELOCATION OF SARI LINE GENERAL MANAGER'S RECOMMENDATION Recommend to the Board to authorize execution of agreement with the Irvine Community Development Company re relocation of SARI line and Mountain Park Sewer Line, in a form approved by General Counsel. SUMMARY The Army Corps of Engineers is currently preparing an Environmental Impact Report/Environmental Impact Statement ("EIR/EIS") for the SARI line relocation project. Part of the project involves relocating the SARI line between the Green River Golf Course and the SAVI Ranch Control Gate. The EIR/EIS contains several alternative alignments. The preferred alignment in the EIR/EIS is known as the "Relocate to the South" alternative, and commonly referred to as the "South Bank Alternative." Under the South Bank Alternative, the pipeline would be placed at a depth of as much as 60 feet. OCSD would like to consider a variation on the South Bank Alternative where the pipeline would be placed at a much shallower level. This proposed variation can be called the Shallow Profile Alternative. The Shallow Profile Alternative might be less costly than the South Bank Alternative. To date, the Shallow Profile Alternative has not been studied in any detail by the various agencies involved in the SARI relocation project planning. The Irvine Community Development Company ("ICDC") is planning a 2,500 unit development project in the Anaheim Hills area. The ICDC would like to connect a 15 inch sewer line from the eastern portion of the Mountain Park development to the SARI line. In exchange for this connection, ICDC is willing to retain engineering and environmental consultants, at a cost of up to $200,000, to study the Shallow Profile Alternative. The engineering consultants would consider the feasibility of the Shallow Profile Alternative and develop information regarding required easements. The environmental consultants will prepare analysis for the EIR/EIS relating to potential environmental impacts of the Shallow Profile alternative. The SARI line relocation project may not be complete by the time that ICDC is ready to connect to the line. Thus, the draft agreement provides for a temporary connection to the existing SARI line in the event that ICDC seeks to connect to the SARI line before the relocation is complete. Once the SARI line relocation is complete, the Mountain Park line would be permanently connected to the new SARI line. GR v H W,Mlend.G.-,Gmnnslled@006W AW1 10ft,)SARI L.na.d. Revised:04/0106AM) Page 1 PRIOR COMMITTEE/BOARD ACTIONS The Board has approved feasibility studies for the SARI line relocation and various emergency repair projects. The Board has not yet considered the Mountain Park sewer connection. 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 ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. The Irvine Company Memorandum from dated March 31, 2006 GN N VkNNOmaavS W n,q Cgm,tleel2KSbUbm t 0(pl GRGi Um Mc a.rza:aaace c�� Page 2 0 y THE IRVINE COMPANY To: Steve Anderson cc: From: Sat Tamaribuchi Date: March 31, 2006 Subject: SARI Project Enclosed are the letter and exhibits previously discussed for your review and consideration. I will be available to discuss these with you on Monday if you'd like. Sat Tamaribuchi [Type on OCSD Letterhead] April.2006 Bryan Austin Vice President Irvine Community Development Company LLC 550 Newport Center Drive Newport Beach,CA 92658-8904 Re: Mountain Park: Letter Agreement Regarding Relocation of SARI Sewer Dear Mr.Austin: This letter memorializes the understandings and agreement of the Orange County Sanitation District ("OCSD') and Irvine Community Development Company LLC ("ICDC� regarding the connection of a 15-inch sewer line (the "Mountain Park Sever Line'l from the East Village portion of ICDC's 2500 unit Mountain Park project (the "Development) into the Santa Ana Regional Interceptor ("SA)tn Sewer. As we have discussed the Los Angeles District of the U.S. Army Corps of Engineers is currently preparing an Environmental Impact Report/Envirormenid Impact Statement ("EM) in connection with its Santa Ana River Mainstream Project, including the proposed relocation of a portion of the existing SARI Sewer located between the Green River Golf Course area and the SAVI Ranch Control Gate as depicted by the dashed white line shown on Exhibit A to this letter(the"Affected Segment"). Under the preferred relocation plan,the Affected Segment would be moved from its present location within the Santa Ana River to a location that parallels the SR-91 Riverside Freeway that is depicted in red on Exhibit A(the"South Bank Afternadve'). OCSD is willing to allow ICDC to connect the Mountain Park Sewer Line into the SARI Sewer subject to the temas of this letter agreement ("Agreement). The parties to this Agreement agree as follows: 1. Mountain Park Sewer Line Connection Into SARI Sewo. In consideration for ICDC's performance of the obligations described in Section 2 below, OCSD agrees that ICDC may connect the Mountain Park Sewer Line into the SARI Sewer. The location of the connection shall depend on the timing of completion of construction of the South Bank Alternative and the needs of the Development: a. SARI Sewer Relocation Completed First If the Affected Segment of the SARI Sewer has been relocated to the South Bank Alternative prior to the time that ICDC desires to connect the Mountain Park Sewer Line to the SARI Sewer,then the Mountain Park Sewer Line shall be connected into the relocated SARI Sewer at Connection Point 1 as shown on Exhibit B to this Agreement. b. Mountain Park Sewer Line Connection Prior to SARI Sewer Relocation. If the Affected Segment of the SARI Sewer has not been relocated to the South Bank Alternative at the time that ICDC desires to connect the Mountain Park Sewer Line to the SARI Sewer,then ICDC shall be allowed to connect to the SARI Sewer at Connection Point 2 as shown on Exhibit B to this Agreement After the relocation of the Affected Segment of the SARI Seaver to the South Bank Alternative is completed, the Mountain Park Sewer Line connection will thereafter be at Connection Point 1. 30161)-0171n57483.< 3/3M6 The connection of the Mountain Park Sewer Line under either of the above alternatives shall be ` completed at no expense to OCSD and shall be made pursuant to plans approved by OCSD and the City of Anaheim prior to commencement of construction. No plan check fee shall be charged by OCSD for its review of the proposed connection of the City of Anaheim-owned Mountain Park Sewer Line under either of the alternatives described above. 2. ICDC Obligations. In consideration for OCSD's agreement to allow the connection of the Mountain Park Sewer Line to the existing or South Bank Alternative SARI Sewer, ICDC agrees to perform the following: a. Administration of Preliminary Engineering and Environmental Analysis. ICDC shall retain and manage engineering and environmental services consultants (collectively, the "Consultants') approved by OCSD to prepare (i) the preliminary engineering feasibility report for the relocation of the Affected Segment of the SARI Sawa to the South Bank Alternative(the "Engineering Work'), and (ii) the portion of the EIS describing the biological resource impacts that will result from the relocation of the Affected Segment of the SARI Sewer to the South Bank Alternative (the "Environmental Work'). The purpose of the Engineering Work will be to provide sufficient information to demonstrate the feasibility of building a shallow-profile South Bank Alternative and to obtain approvals for easements for the new SARI Sewer alignment from all landowners within the South Bank Alternative alignment. The purpose of the Environmental Work will be to analyze and quantify the impacts of building the shallow-profile South Bank Alternative and determine mitigation measures that may be appropriate. All work performed by the Consultants shall be subject to the approval of the OCSD, and OCSD shall not charge any plan check fees in connection with its review of the Engineering Work and the Environmental Work. b. ICDC Financial Obligation. ICDC shall pay the Consultants for their services in performing the Engineering Work and the Environmental Work; provided, however, that in no event shall ICDC be responsible for the payment of any amounts for the cost of such consulting services(for both the Engineering Work and the Environmental Work)in excess of Two Hundred Thousand Dollars ($200,000.00). Subject to the foregoing limitation, ICDC shall pay the Consultants in a timely manner for their services, and shall provide copies of all contracts, invoices and payments to OCSD. In the event that the cost of the services provided by the Consultants exceeds the above amount, OCSD shall determine if they want ICDC to direct that the Engineering Work and the Environmental Work be completed at the cost of OCSD or another agency or organization. 3. Term of Consultant Contracts. The parties agree that the contracts entered for the performance of the Engineering Work and the Environmental Work shall each require that the services be completed on or before June 30,2006. 4. Protect Coordination. With respect to review of consulting services,plans for connection of the Mountain Park Sewer Line, and any other matters requiring coordination of efforts or the implementation of this Agreement, OCSD designates Hardat Khublall, telephone(714)593-7377 (fax 714-964-4775) to act as its project representative, and ICDC designates Terry Hareamn, telephone (949) 720-2707 (fax 949-720-2692) to act as its project representative. Either party may change its designated representative by providing written notice of same to the other party. 5. Attorneys' Fees. If any action or proceeding is brought to enforce or interpret any provision of this letter, the prevailing party or parties shall be entitled to recover reasonable attorneys' fees and court costs in addition to any other available remedy. 30M6 171/357483.4 3/30/06 6. Authorization. OCSD and ICDC represent and warrant that this Agreement has been duly authorized and executed and constitutes the legally binding obligation of their respective organization or entity,enforceable in accordance with its terms. 7. Entire Agreement. This letter,together with the attachments hereto,constitutes the entire agreement of the parties with respect to the subject matter contained herein, and supersedes all prior agreements and understandings,whether oral or written. If the above provisions accurately reflect our mutual understandings regarding the parties' respective obligations regarding the matters described above, please sign the enclosed copy of this letter and return it to me. Thank you for your cooperation. Sincerely, James D.Ruth Interim General Manager APPROVED AS TO FORM: [Firm Name] By: Legal Counsel, Orange County Sanitation District ICDC Concurrence The terms of this Agreement are accepted and agreed to by the undersigned. IRVINE COMMUNITY DEVELOPMENT COMPANY LLC By: Bryan Austin Vice President,Community Development By: Mary K.Westbrook Assistant Secretary 30160oi71a57483.4 3/3og6 Exhibit A Depiction of Existing Location of SARI Sewer and South Bank Alternative 30160-0171/357483.4 M0106 Exhibit B Depiction of Mountain Park Sewer Connection Points 1 and 2 301W-0171/357483.4 3/30ft J < eq ro o„ LI.EW 9 un,wwus,.rue" tl SOUTH BANK ALTERNATIVE EXHIBIT A `� � Y �: p.)..I' � • ,{III I pI'JJ••"C6 u� �y 'r � �7< �A _�QY•." � jar' 3 � I"\ J.\'Y t•f. tv J qq atl IL x •LL�1 t � v a{{! � J a f p . 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, April 26, 2006, was duly posted for public inspection in the main lobby of the District's offices on Thursday,April 20, 2006. IN WITNESS WHEREOF, I have hereunto set my hand this 26th day of April, 2006. Penny Kyle, S6dretary of a Board of Directors of Orange County Sanitatioll District Posted: April 20, 2006, 12:00 o.m.. By: Signature HwoPmgendMSSieedng CommltteeQ0MCertMu(1Dn Form dm T ORANGE COUNTY SANITATION DISTRICT 171419'o2-2 1° 1 t 4 NOTICE OF MEETING tn: 1114'962A bfii www.nceesam .111npa„rem STEERING COMMITTEE P.O. 8.8127 Po nteln valley,CA 92728-8127 �atedd.l ORANGE COUNTY SANITATION DISTRICT 1 W"Eliia Ayenua 'Fwntwn Valley.CA 92708-MlB WEDNESDAY, APRIL 26, 2006 —5:00 P.M. Meegwr Agenda. • cities DISTRICT'S ADMINISTRATIVE OFFICES An.Aeml 10844 ELLIS AVENUE eoen.Pant FOUNTAIN VALLEY, CALIFORNIA 92708 Cyaress www.ocsd.com Fnunto. Valley Fwle,t , (Srtlan Griae Hunwn do, Basch Irvine a He Are La Palm. A regular meeting of the Steering Committee of the Las Acoaaas Beach Beaaacs h Board of Directors of the Orange County Count Sanitation Ne La Grenee District, will be held at the above location, date and paean"' Santa Ann time. anal arch s.nwn Tustin Wild Part Yards Lrnd. 6senty at Orange renkery Gletdete Coats Mee. Midway City water nietHete c.re Panc" H:\dept\agenda\Steering Committee\2006\SC Meeting Notice Form.l.doc To maintain world class leadership in wastewater and water resource management. STEERING COMMITTEE AND BOARD MEETING DATES FOR THE NEXT TWELVE MONTHS 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 Wednesday, January 24, 2007 Wednesday, February 28, 2007 Wednesday, March 28, 2007 Wednesday, April 25, 2007 Wednesday, May 23, 2007 Wednesday, June 27, 2007 'Tentatively rescheduled from regular fourth Wednesday. H:Wept\agenda\Steenng CommitteeMOMMeeting Dates Fon.2.doc Y SUPPLEMENTAL AGENDA STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT DISTRICT'S ADMINISTRATIVE OFFICES 108" ELLIS AVENUE FOUNTAIN VALLEY, CA 92708 REGULAR MEETING APRIL 26, 2006—5:00 P.M. Agenda Postina: In accordance with the requirements of California Government Code Section 64954.2, this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Board 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 Board subsequent to the posting of agenda,or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Board Secretary's office at(714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Items Continued: Items may be continued from this meeting without further notice to a Committee or Board meeting held within five(5)days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adiournment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955(posted within 24 hours). (8) ACTION ITEMS a. Authorize the General Manager to sign the Southern California Coastal Water Research Project Office Lease Guarantee, in a form approved by General Counsel. (15) ADJOURNMENT H:dept\agenda\Steering Commltiee\2006\04\042606 Supplemental agenda.doc STEERING COMMITTEE Meeting Date To 9d.or Dir. 4/26/2, 4/26/2006 AGENDA REPORT Rem Number Item Number 8(a) 26 orange County Sanitation District FROM: Robert P. Ghirelli, D.Env., Director of Technical Services Originator: George Robertson, Senior Scientist SUBJECT: AUTHORIZATION FOR GENERAL MANAGER TO SIGN THE SOUTHERN CALIFORNIA COASTAL WATER RESEARCH PROJECT OFFICE LEASE GUARANTEE. GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to sign the Southern California Coastal Water Research Project Office Lease Guarantee, in a form approved by General Counsel. SUMMARY The Southern California Coastal Water Research Project(SCCWRP)was established in 1969 under a joint powers agreement (JPA) by five southern California wastewater ocean dischargers to study the effects of discharging treated effluent to the marine environment. SCCWRP and its Commission (on which the District has a representative) have identified the need to move to a new facility to better carry out their mission. As a JPA, SCCWRP is funded in four year increments, with the most recent extending to June 30, 2009. The proposed lease is for 10 years and the landlord has requested a guarantee in the event that the JPA is not renewed. The District has offered to provide this guarantee, with the provision that in the event of the dissolution of SCCWRP JPA that the District receives priority in any disbursements of SCCWRP assets. PRIOR COMMITTEE/BOARD ACTIONS SCCWRP JPA approved by the Board on December 15, 2004 (Resolution No. OCSD 04-29). 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) crt- c�Hon�m m semosy+ne6 l�%Tm „ice Frnwix2m 26 sccwrsv.aoc anise. Na (..m Page 1 ADDITIONAL INFORMATION f Financial Liability The District's finance staff has evaluated the potential financial liability. Their findings are: • The total lease payments for 12 years equal $4.8 million. This results in a net present value liability of$3.7 million when applying the Sanitation District's budgeted earnings yield rate of 4%. That would be the maximum exposure if SCCWRP defaulted on day one of the lease and the building was left empty for 12 years. However, if for some reason the JPA was not renewed in three years, the facility could be sub-leased minimizing potential losses. • SCCWRP recently approved a resolution granting OCSD priority distribution of SCCWRP's net assets in case of lease default. As of June 30, 2005, SCCWRP had current assets consisting of cash and accounts receivables, of$3,612,000. SCCWRP's total liabilities at June 30, 2005, were $2,060,000, resulting in total unrestricted net assets of$1,552,000. • Staff has reviewed the SCCWRP Audited Financial Reports for the years ended June 30, 2005, 2004, and 2003. All three years received unqualified opinions from the independent auditors, the highest level of opinion possible. In addition, staff obtained a Dunn & Bradstreet report on SCCWRP as of June 30, 2004, and SCCWRP received Credit Class and Financial Stress Class Scores of 1, the best rating that is given. SCCWRP also received a "prompt rating" on the Dunn & Bradstreet payment index scale. ALTERNATIVES NA CEQA FINDINGS NA ATTACHMENTS NONE. GR . C aM Semn05gartAlLLoal 5 tIn05�TenW r,In IFll s` LnTRnnM SCCWRP Ox Reraea. .."I.) Page 2 STEERING COMMITTEE (t) Roll Call: Meeting Date: April 26 . 2006 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 Caveoche, OMTS Committee Chair.......................— Tod Ridgeway, PDC Committee Chair................................ Jim Silva, Supervisor.......................................................... Others Brad Hogin, General Counsel Don Hughes Staff Present Jim Ruth, Interim General Manager Nick Arhontes, Director of Regional Assets& Services Bob Ghirelli, Director of Technical Services Jim Herberg, Director of Operations & Maintenance David Ludwin, Director of Engineering Patrick Miles, Director of Information Technology Lisa Tomko, Director of Human Resources Lorenzo Tyner, Director of Financelrreasurer Gail Garrett, Committee Secretary Other Staff Present Bret Colson, Public Information Manager c: Lenora Crane H9dep0agenda\Sleenng Commitlee\2006\04l042606 Roll Call Shea(Form.3.dm AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, APRIL 26, 2006 AT 5 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California www.ocsd.com (1) ROLL CALL (2) APPOINTMENT OF CHAIR PRO TEM, IF NECESSARY (3) PUBLIC COMMENTS (4) REPORT OF COMMITTEE CHAIR (5) REPORT OF GENERAL MANAGER a. Monthly Status Report b. Update on FY Fiscal Year 2006-2007 and 2007-2008 Budget Process (6) REPORT OF GENERAL COUNSEL (7) CONSENT CALENDAR ITEMS Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. Approve minutes of the March 22, 2006 Steering Committee meeting. END OF CONSENT CALENDAR -2- April 26, 2006 Agenda Consideration of items deleted from Consent Calendar, if any. (8) ACTION ITEMS (9) INFORMATIONAL ITEMS a. Review Agenda Items scheduled to be presented to Committees in May (Information item only) b. Review and consideration of Agenda Items for Board of Directors Meeting of April 26, 2006 (10) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY (11) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING (12) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (13) FUTURE MEETING DATES The next Steering Committee Meeting is scheduled for 5 p.m., Wednesday, May 24, 2006. The next Board Meeting is scheduled for 7 p.m.,Wednesday, May 24, 2006. (14) 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. -3- April 26, 2006 Agenda A. Convene in closed session, if necessary 1. Confer with General Counsel re anticipated litigation-Significant exposure to litigation, Government Code section 54956.9(b)—one potentlal case. B. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session. (15) ADJOURNMENT Aaenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in 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. Public Comments: Any member of the public may address the Steering Committee on specific agenda items or matters of general Interest. As determined by the Chair, 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). Consent Calendar: All matters placed on the consent calendar are considered as not requiring discussion or further explanation,and unless a particular item is requested to be removed from the consent calendar by a Director of staff member,there will be no separate discussion of these items. All items on the consent calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the consent calendar shall be considered in the regular order of business. The Committee Chair will determine if any items are to be deleted from the consent calendar. Items Continued: Items may be continued from this meeting without further notice to a Committee meeting held within five (5)days of this meeting per Government Code Section 54954.2(b)(3). Meetino Adiournment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955 (posted within 24 hours). 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. Notice to Committee Members: -4- April 26, 2006 Agenda For any questions on the agenda or to place any items on the agenda, Committee members should contact the Committee Chair or Secretary ten days in advance of the Committee meeBng. Committee Chair: Steve Anderson (562)905-9700(La Habra City Hall) Interim General Manager: 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-mail: ggarrett®orstl.cem N1gEPMGFagAVSI MGWWREBID0001 MAGEN FMW.IAGC MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, March 22, 2006, at 5 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, March 22, 2006 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 Greg Heiertz, IRWD Director of Engineering & Darryl Miller, Chairman, FAHR Committee Planning Tod Ridgeway, Chairman, PDC Committee STAFF PRESENT: Jim Ruth, Interim General Manager Nick Arhontes, Director of Regional Assets and Services Directors Absent: Bob Ghirelli, Director of Technical Services Carolyn Cavecche, Chair, OMITS Committee Jim Herberg, Director of Operations and Jim Silva, County Supervisor Maintenance David Ludwin, Director of Engineering Lorenzo Tyner, Director of Financerrreasurer Jim Buror, Engineering Supervisor Simon Watson, Maintenance Manager Layne Baroldi, Legal & Regulatory Affairs Liaison Gail Garrett, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no comments by any member of the public. (4) REPORT OF THE COMMITTEE CHAIR Minutes of the Steering Committee Page 2 March 22, 2006 Committee Chair Steve Anderson made several announcements: • On March 15, 2006, OCSD successfully completed the first of seven milestones, the new Trickling Filter Facility at Plant No. 1. The event was marked with a special celebration. Guests included representatives from the offices of Senator Barbara Boxer, Senator Tom Umberg, and Congressman Miller, and guest speakers from the Environmental Protection Agency, Santa Ana Regional Water Quality Control Board and Orange County Coastkeeper. • OCSD and OCWD are joint recipients of the third National Water Research Institute's (NWRI)Award of Excellence for the GWRS project. Director Eckenrode accepted the award on behalf of the District. • Chair Anderson attended the CIP workshop on March 15. Staff informed the committee up to $474 million In projects may be cancelled or deferred to future years. • The CASA Spring Conference will be held in Lake Tahoe, April 26-29. Notify Gail Garrett by March 29 if you will attend. Washington DC Legislative Affairs Update Chair Anderson attended both the ACWA and CASA conferences. Directors Anderson, Neugebauer, Ferryman and Miller, along with General Manager Jim Ruth, Dr. Ghirelli, and our DC lobbyists represented the District at a number of meetings in Washington DC with congressional and appropriations committee staff. They discussed the importance of federal funding for the secondary treatment and the SARI line. OCSD is asking for$7 million next year for the SARI line and $3 million for secondary treatment. Chair Anderson noted that appropriations will be hard to come by considering the flow of money to Iraq and the Gulf Coast but that every effort is being made to attract funding. SARI Alternate Alignment Dave Ludwin, Director of Engineering, provided a report on his meeting with Sat Tamaribuchi, Vice President, Environmental Affairs, The Irvine Company. Mr. Ludwin explained a new concept presented by Mr. Tamaribuchi and Fusco Engineering for an alternate alignment of the SARI line which could potentially be less costly. Engineering staff will look at the feasibility, costs and potential Issues Involved, and provide a recommendation at the April Steering Committee meeting. Directors requested that staff prepare a diagram of the proposed alternate alignment, showing how and where the pipe will run. Finally, Chair Anderson announced upcoming standing committee meetings. (5) REPORT OF THE GENERAL MANAGER Update on FY Fiscal Year 2006-2007 and 2007-2008 Budget Process Interim General Manager Jim Ruth reported that the budget reviews have been completed. Staffing increases are not anticipated. Lorenzo Tyner, Director of Finance, and his staff are analyzing operational and staffing needs and refining the budget,and will provide an update at next month's meeting. Public Information Manager Mr. Ruth announced that our new Public Information Manager, Bret Colson, has begun his evaluation of our PIO operations and its strategic plan. Minutes of the Steering Committee Page 3 March 22, 2006 SARI Update A meeting with County CEO, Tom Mauk, on the SARI line is scheduled for March 23. We may realize potential savings if the alternate alignment concept Mr. Ludwin outlined above is feasible. Performance Appraisal System Development of a performance appraisal system for management is progressing and will be presented to the April FAHR committee. Succession Plan Human Resources staff is working with management and executive management to implement a succession plan for the Sanitation District. The plan will be presented to the FAHR Committee and Board by the end of this fiscal year. Leadership Development Mr. Ruth will meet with a consultant on March 23 to discuss designing a leadership development program for executive and middle management Southern California Coastal Water Research Project(SCCWRP)lease agreement Bob Ghirelli, Director of Technical Services, briefed directors on the SCCWRP proposed lease agreement for a larger office and lab space in Costa Mesa. At the September Steering meeting, staff was directed to initiate procedures to negotiate a 7-year lease contract as ce-signee with SCCWRP. General Counsel is currently reviewing the proposed agreement for lease of 26,000 sq. ft. at $318,000/year. OCSD staff will be able to share meeting and lab space at the new facility as well as staff. Dr. Ghirelli expects to present the agreement for Steering and Board consideration in April. Director Darryl Miller suggested contacting Virginia Grebbian, General Manager, OCW D,whether SCCWRP can lease space at the Water District's new laboratory facility. (6) REPORT OF GENERAL COUNSEL General Counsel Brad Hogin did not make a report. (7) CONSENT CALENDAR ITEMS a. Approve minutes of the February 22, 2006 Steering Committee meeting. MOTION: It was moved, seconded and duly carried to approve the recommended actions for item specified as 7(a)under Consent Calendar. END OF CONSENT CALENDAR (8) ACTION ITEMS a. Direct staff to prepare an annexation application to add the East Orange Minutes of the Steering Committee Page 4 March 22, 2006 Development areas, within the soon to be dissolved Santiago County Water District, to the Orange County Sanitation Distrct within Revenue Area 14 (Irvine Ranch Water District). Engineering staff informed Directors that IRWD will be preparing the application and OCSD will prepare the resolution. The motion was therefore modified to read: Direct Staff to prepare a resolution authorizing initiation of proceedings to annex East Orange Development areas within the former Santiago County Water District to the Orange County Sanitation District. MOTION: It was moved, seconded and duly carried to recommend approval of the modified motion to the Board of Directors. (9) INFORMATIONAL ITEMS a. The Agenda Items scheduled to be reviewed by the Board's working committees in April were reviewed. b. The agenda items scheduled to be presented to the Board at tonight's meeting were reviewed. (10) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (11) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (12) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (13) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, April 26, 2006 at 5 p.m. The next Board Meeting is scheduled for Wednesday, April 26, 2006 at 7 p.m. (14) CLOSED SESSION Minutes of the Steering Committee Page 5 March 22, 2006 The Committee convened at 5:55 p.m. in Closed Session, pursuant to Section 54956.9, to discuss pending litigation. 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 6:10 p.m., the Committee reconvened in regular session. (15) ADJOURNMENT The Chair declared the meeting adjourned at 6:20 p.m. Submitted by: Gail Garrett Steering Committee Secretary µW9plpe,xplgM�lp GnnNfpBWJSNM]}]C6 SC MnNe[FINAL.@[ STEERING COMMITTEE Meenn9Data To ad.of Di . 4 2aa6 AGENDA REPORT Item Number I Item Number 9(a) Orange County Sanitation District FROM: James D. Ruth, Interim General Manager Originator: Gail Garrett, Committee Secretary SUBJECT: May Agenda Items for Consideration by Working Committees GENERAL MANAGER'S RECOMMENDATION Review with staff the agenda items tentatively scheduled for review by the Working Committees in May SUMMARY Staff routinely prepares for the Steering Committee a list of items scheduled for presentation to the Working Committees and the Board at their next monthly meetings. This allows the Steering Committee the opportunity to review these items early enough to make reassignments in the review or approval process. The following items are scheduled to be considered by the Committees in May: OMTS Committee: 1. Consider Updated Board Resolution on Biosolids Recycling 2. Receive and File FOG Phase II Study Report 3. Receive and File Beach Water Quality Report 2004-05 4. Report on Joint Chemical Purchase Agreements PDC Committee: 1. Ratify Change Order No. 8 for Job No. P2-47-3, Secondary Treatment Process Upgrades at Plant No. 2 2. Ratify Change Order No. 26 for Job No. P1-37, Primary Clarifiers 16-31 and Related Facilities 3. Ratify Change Order No. 1 to Job No. I-2-4A for Contract No. 1-2-4, Bushard Trunk Sewer Rehabilitation 4. Ratify Change Order No. 1 for Job No. FE05-34, P2 Underground Storage Tank Rehabilitation at Headworks Power Bldg. B 5. Ratify Change Order No. 2 for Job No. P2-66, Headworks Improvements at Plant No. 2 6. Approve PSA for Contract No. 5-50, Rocky Point Pump Station Replacement 7. Approve Amendment No. 6 to PSA for IPMC Amendment 8. Approve Amendment No. 7 to PSA for Contract No. 7-21, Sunflower Manhole Rehabilitation 9. Approve Amendment No. 1 to PSA for Contract No. 11-26, Coast Trunk Sewer Rehabilitation 10. Approve Amendment Nos. 2 and 3 for Spec No. PSA 2003- 175 11. Approve Amendment Nos. 2 and 3 for Spec No. PSA 2003- 176 12. Approve Amendment Nos. 2 and 3 for Spec No. PSA 2003- 177 13. Authorize GM to enter into Purchase and Sale Agreement for Contract No. 5-49, Bitter Point Pump Station Replacement 14. Approve Funding for Four New Cooperative Projects for Job No. J-73, Cooperative Projects Grant Program 15. Report on Contract No. 7-49, MacArthur Pump Station Rehabilitation Project (CEQA Documentation) FAHR Committee: 1. Report on Meet and Confer Status 2. Consider Recruitment Policy 3. Report on Contracts Insurance Indemnification 4. Report on Labor relations program update/benefits program overview 5. Consider GM approved purchases in amounts exceeding $50,000 6. Report on Health Benefits Costs 7. Consider Quarterly Financial Management Report 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 HW,,tWgw O eenn0 CommlteeQMS` S)420 qq Gel of AR*for Mayyr 6 Uoc A.S. MOM Page 2 STEERING COMMITTEE MeelingDal To ea.ofDir. oarzrvoe AGENDA REPORT en (bmber g Item Number t 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 April 26, 2006 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 April 26, 2006 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. Reorganize Annexation No. OCSD-50 - Sullivan Annexation, previously approved April 28, 2005, annexing 1.019 acres to the Orange County Sanitation District in the vicinity of Randall Street and Clark Lane, in an unincorporated area of Orange County; and (2) Adopt Resolution No. OCSD 06-04, authorizing initiation of proceedings to annex said territory to the Sanitation District (Reorganization of Annexation No. OCSD-50— Sullivan Annexation). b. (1) Receive and file petition requesting annexation of 71.24 acres to Orange County Sanitation District in the vicinity of Bolsa Chica Street and Los Patos Avenue, an unincorporated area in Orange County; and, (2)Adopt Resolution No. OCSD 06-05, making certain findings pursuant to the California Environmental Quality Act and authorizing initiation of proceedings to annex certain territory to OCSD (Proposed Annexation No. OCSD-55— Bolsa Chica Annexation). C. (1) Receive and file petition from Irvine Ranch Water District requesting annexation of 12,000 acres to the Orange County Sanitation District in the vicinity of Irvine Lake, Santiago Canyon Road, extending east to the Orange County/Riverside County boundary in an unincorporated area of Orange County; (2)Adopt Resolution No. OCSD 06-06, Considering Addendum No. 1 to the 1985 Addendum No. 1 to the Final Environmental Impact Report for the Formation of Sanitation District No. 14; and, (3)Authorize initiation of proceedings to annex certain territory to Orange County Sanitation District (Proposed Annexation No. OCSD-56— Irvine Ranch Water District ID-253 Annexation). 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 March 22, 2006, to be filed. Non-Consent Calendar b. Review and consideration of agenda items considered by the Steering Committee re the April 26, 2006 meeting. 12. OPERATIONS. MAINTENANCE AND TECHNICAL SERVICES COMMITTEE O( MTS) OUTS Consent Calendar a. Order draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on April 5, 2006 to be filed. b. Receive and file the 2005 Ocean Monitoring Annual Report. C. Receive and file the 2005 Biosolids Management Compliance Annual Report. H WePIW9eddalSlo0no0 Commllee@ 61 N42606 B(n0.,sl of PRs for AMI Bead or 7.dm .o., d. W.. Page 2 d. (1)Authorize the General Manager to issue a Request for Proposals for Biosolids Management for Energy Production, Specification No. 5-2003- 168BD, and Biosolids Management with Thermal Drying for the Production of Pellets or Granules, Off-Site, Specification No. S-2003-169A BD; and, (2) Approve Amendment No. 8 to the Agreement for Removal and Disposal/Reuse of District's Residual Solids with Synagro West, Inc., increasing the minimum tonnage to be tendered from 200 tons to 250 tons per day of Class B biosolids to be composted at the South Kern Industrial Center (SKIC) upon SKIC's commissioning, and increasing the cost from $53.11 to $60.11 per ton for an annual amount not to exceed $6,580,000 plus cost escalators. Non-Consent Calendar e. Consideration of items deleted from OMTS Consent Calendar, if any. 13. PLANNING, DESIGN AND CONSTRUCTION COMMITTEE (PDC1 PDC Consent Calendar a. Order draft Planning, Design and Construction Committee Minutes for the regular meeting held on April 6, 2006, to be filed. b. (1) Ratify Change Order No. 1 for Headworks Construction Trailers at Plant No. 2, Job No. P2-66-2, with Dalke & Sons Construction, Inc., authorizing an addition of$13,585 and six calendar days, increasing the total contract amount to $832,085; and, (2)Accept Headworks Construction Trailers at Plant No. 2, Job No. P2-66- 2, as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. C. (1) Ratify Change Order No. 1 to Santa Ana River Interceptor, 2005 Emergency Repairs from 10,000 CFS Release, Contract No. 241-4B, with Ken Thompson, Inc., authorizing an addition of$91,221 and six calendar days, increasing the total contract amount to $1,440,286; and, (2) Ratify Change Order No. 2 to Santa Ana River Interceptor, 2005 Emergency Repairs from 10,000 CFS Release, Contract No. 241413, with Ken Thompson, Inc., for an Adjustment of Engineering Quantities, authorizing a decrease of$9,713, decreasing the total contract amount to $1,430,573. d. (1) Ratify Change Order No. 7 to Gisler-Redhill Trunk Improvements, Reach "A", Contract No. 7-36; Orange Trunk Improvements, Contract No. 7-39; Gisler-Redhill/North Trunk Improvements, Contract No. 741; and City of Tustin Project Nos. 6106 and 6151, with ARB, Inc., authorizing an M:�asw�.oe"n•�s�eenre c"mnnreuaoawanszmeann+rta Arts 1wA m. rl Page 3 addition of$169,962 and 27 calendar days, increasing the total contract amount to $20,394,286; and, (2)Approve a reimbursement to the City of Tustin in the amount of $24,000 for deletion of the final asphalt overlay along Holt Avenue between Irvine Boulevard and Newport Avenue intersection. e. (1)Approve a budget amendment of$2,068,822 for Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, for a total project budget of$29,038,822; (2) Ratify Change Order No. 15 to Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, with J.F. Shea Construction, Inc. authorizing an addition of$1,056,372 and 256 calendar days, increasing the total contract amount to $18,717,547; (3) Ratify Change Order No. 16 for an Adjustment of Engineered Quantities authorizing an increase of$18,000, increasing the total contract amount to $18,735,547; and, (4)Accept Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement with J.F. Shea Construction, Inc. f. Approve Amendment No. 2 to the Joint Exercise of Powers Agreement for the Development, Operation, and Maintenance of the Groundwater Replenishment System and the Green Acres Project with the Orange County Water District, providing for a revised Change Omer Policy, in a form approved by General Counsel. g. (1)Approve specification documents for Tule Ranch Biosolids Water Management Needs, Kings County, Job No. SP-79, on file at the office of the Board Secretary; (2) Receive and file bid tabulation; and, (3) Reject all bids for Tule Ranch Biosolids Water Management Needs, Kings County, Job No. SP-79. Non-Consent Calendar h. Consideration of items deleted from PDC Consent Calendar, if any. 14. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR Consent Calendar H'be Wd0.SHMn6CmuntlNVWBMW3B00 ft"ON WR BnNa!lAtt He W+ v Page 4 a. Order draft Finance, Administration and Human Resources Committee Minutes for the meeting held on April 12, 2006, to be filed. (Minutes to be distributed at 04/26/06 Board Meeting.) b. Adopt Resolution No. 06-07, amending Resolution No. OCSD 98-33, amending Human Resources Policies and Procedures Manual. C. Adopt Resolution No. OCSD 06-08, Adopting the Updated Records Retention Schedule and Records Series Definitions, Authorizing Destruction of Obsolete Records, and Repealing Resolution No. OCSD 05-08. d. Approve the New Performance Appraisal System for EMT and Managers. e. Adopt Resolution No. OCSD 06-09, Establishing a Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and Meeting Attendance and Compensation; and Repealing Resolution No. OCSD 04-16. FAHR Nan-Consent Calendar f. Consideration of items deleted from FAHR Consent Calendar, if any. 15. CIP OVERSIGHT COMMITTEE Consent Calendar a. Order draft CIP Oversight Committee Minutes for the meetings held on March 15, 2006, March 29, 2006, and April 5, 2006, to be filed. b. (1)Approve reduction of approximately$474 million to the Capital Improvement Program through the year 2020 as presented by staff; (2) Direct staff to include the modified Capital Improvement Program in the Fiscal Year 2006-07 Budget; and, (3) Direct the General Manager to obtain services for an independent review of the Capital Improvement Program. Non-Consent Calendar C. Consideration of items deleted from CIP Oversight Committee Consent Calendar, if any. 16. LEGISLATIVE AFFAIRS COMMITTEE a. Order Legislative Affairs Committee Minutes for the meetings held on February 14, 2006 and April 11, 2006 to be filed. n WpllepmeeWeennO L fte� b)LIN.'Aft lar AM'aovaer.l.aoc %e .d:snores Page 5 17. GWR SYSTEM STEERING COMMITTEE (GWRSSCI GWRSSC Consent Calendar a. Order Joint Groundwater Replenishment System Steering Committee Minutes for the meeting held on March 13, 2006, to be filed. GWRSSC Non-Consent Calendar b. Consideration of items deleted from GWRSSC Consent Calendar, if any. NON-CONSENT CALENDAR 18. (1) Ratify proposed reimbursement per the Orange County Sanitation District letter to the City of Newport Beach dated March 31, 2006 authorizing the City to proceed with an contract with Clarke Contracting Corporation for an amount estimated not to exceed $30,000 in connection with the Realignment and Rehabilitation of the Big Canyon Offsite Trunk Sewer, Contract No. 5-62; and, (2)Approve Letter Agreement dated April 26, 2006 with the City of Newport Beach and the Big Canyon Country Club, in a form approved by General Counsel, providing for construction access, easements and transferring of easements, for an amount not to exceed $368,500. 19. Approve Change Order No. 4 to the Purchase Agreement 101320-OB issued to Pro Pipe Professional Pipe Services, Innerline Engineering, and National Plant Services for Sewer Line Video Inspection Services, Specification No. S-2002- 81 BD, for an additional amount of$200,000, for a total amount not to exceed $600,000 for the contract period July 1, 2005 to June 30, 2006, and all remaining contract renewal periods. 20. Ordinance No. OCSD-27, An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Specified Revenue Areas within the District, and Repealing Ordinance No. OCSD-02: a. Motion to read Ordinance No. OCSD-27 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) b. Motion to introduce Ordinance No. OCSD-27, and pass to second reading and public hearing on May 24, 2006. 21. Item removed. 22. Ordinance No. OCSD-29, An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Fees, Procedures, and Policies Concerning Annexations of Territory to the District, and Repealing Ordinance No. OCSD-21: H:NeptW ftWx 09 WW1 em,e ,Taw w„xe: Page 6 a. Motion to read Ordinance No. OCSD-29 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) b. Motion to introduce Ordinance No. OCSD-29, and pass to second reading and public hearing on May 24, 2006. 23. (a) Ordinance No. OCSD-30A, An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Sanitary Sewer Service Charges; Establishing Capital Facilities Capacity Charges; Adopting Miscellaneous Charges and Fees Relating to Industrial Charges, Source Control Permittees and Wastehaulers, and Repealing Ordinance No. OCSD-26: 1. Motion to read Ordinance No. OCSD-30A by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) 2. Motion to introduce Ordinance No. OCSD-30A, and pass to second reading and public hearing on May 24, 2006. (b) Ordinance No. OCSD-30B, An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Sanitary Sewer Service Charges; Establishing Capital Facilities Capacity Charges; Adopting Miscellaneous Charges and Fees Relating to Industrial Charges, Source Control Permittees and Wastehaulers, and Repealing Ordinance No. OCSD-26: 1. Motion to read Ordinance No. OCSD-30B by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) 2. Motion to introduce Ordinance No. OCSD-30B, and pass to second reading and public hearing on May 24, 2006. 24. Closed Session PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. N'N4NOmdl51lTn3 CCmnMe30W'M`Dt3lVb NCH190t N6Iw M' B®16if.]dF Page 7 ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION NA ALTERNATIVES NA CEQA FINDINGS Not a project. ATTACHMENTS NA 99 �wniwammvsicm,ewmmnee¢aosaoazws s�o��sauh ra nW emroar.�aoc Page 8 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