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HomeMy WebLinkAbout2006-05 MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, May 24, 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: Kennard R. Smart, Jr., Counsel Jim Ferryman, Vice Chair Carolyn Cavecche, Chair, OMTS Committee STAFF PRESENT: Darryl Miller, Chairman, FAHR Committee Jim Ruth, Interim General Manager Tod Ridgeway, Chairman, PDC Committee Nick Arhontes, Director of Regional Assets and Services Directors Absent: Gail Garrett, Committee Secretary Steve Anderson, Chair Juanita Skillman Jim Silva, County Supervisor (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. FILED IN THE OFFICE OF THE ,,w DISTRICT GRANGE nn"MT' 'rL006 (3) PUBLIC COMMENTS ,1Uy 28 There were no comments by any member of the public. 4 !T (4) REPORT OF THE COMMITTEE CHAIR In the absence of Chair Steve Anderson, Vice Chair Ferryman introduced Kennard R. Smart, Jr. who is attending in Brad Hogin's absence. Mr. Ferryman reminded that nominations for Board Chair for 2006-2007 will be opened at tonight's meeting. A 2/3 vote of the full Board is needed to adopt the rate increase. Bob Ghirelli, Director of Technical Services, and Supervisor Silva attended the CASA Spring Conference in Lake Tahoe last month. Mr. Anderson and Dr. Ghirelli are currently in Washington DC to meet with legislative and congressional staff to promote support for District's legislative and grant programs. Mr. Ferryman announced the standing committee meeting dates for June. Director Carolyn Cavecche informed that the OMITS Committee meeting may be cancelled in June. The only planned Minutes of the Steering Committee Page 2 May 24, 2006 OMTS action item for June regarding the approval of the Fleet Management Software for Regional Assets and Services could be moved to the full Board for consideration if the meeting is cancelled. Board members are Invited to attend the PDC Committee meeting on June 1"at 5:00 p.m.,or the FAHR Committee meeting on June 10 at 5:00 p.m.,to hear the detailed briefing on the proposed budget. A Benefits workshop follow-up meeting for the FAHR Committee will be scheduled in mid-June. (5) REPORT OF THE GENERAL MANAGER Interim General Manager Jim Ruth reviewed activities included in his May Status Report which was placed in the Directors' meeting folders that evening. The two-year budget which is based on a proposed 9.8% rate increase for 2006-07 will be presented to the Board in June. He informed the two proposed rate increase options will be considered by the Board tonight Counsel Ken Smart clarified the 213 adoption process. Mr. Ruth explained that the Succession Plan process has been delayed due to key staff going on two-week reserve duty. A report will be provided at the next meeting. Nick Arhontes informed that the District has issued a letter of intent to purchase a 2.5 acre industrial site in Garden Grove for$6.2 million for the proposed North County Yard. A Purchase and Sale Agreement will now be negotiated for the Board's consideration in June. Mr. Ruth, Directors Anderson and Miller,and Dave Ludwin will discuss SARI line funding with the Orange County CEO on June 8. The new Performance Evaluation program is a simpler and more effective system. Barry Newton, Creative Management Solutions, Inc.will brief the Board on the performance evaluation prototype in June. Dr. Don Grayson, Management Consultant, has performed a comprehensive assessment of the IT department. Mr. Ruth has met with mid-management several times to discuss management leadership training needs. (6) REPORT OF GENERAL COUNSEL Mr. Smart informed the District was served with a lawsuit by Travelers Insurance re a contract issued in 2000. (7) CONSENT CALENDAR ITEMS a. The minutes of the April 26, 2006 Steering Committee meeting were approved as drafted. END OF CONSENT CALENDAR Minutes of the Steering Committee Page 3 May 24,2006 (8) ACTION ITEMS There were none. (9) INFORMATIONAL ITEMS a. Strategic Initiatives Lorenzo Tyner, Director of Finance, gave a brief report on the ten new strategic initiatives identified by Executive Management as highly strategic. Staff will not increase resources to implement these initiatives. Any costs associated with the initiatives are contained within the budget. In response to Directors'questions, Nick Arhontes, Director of Regional Assets and Services, briefed the Committee members on Initiative 1, Local Sewer Services as an example of one of the initiatives. Mr. Ruth assured the Committee that staff will provide the Board with a time frame and costs for those initiatives that do not overlap ongoing initiatives. b. The Agenda Items scheduled to be reviewed by the Board's working committees in March were reviewed. C. 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,June 28, 2006 at 5 p.m. The next Board Meeting is scheduled for Wednesday,June 28, 2006 at 7 p.m. Minutes of the Steering Committee Page 4 May 24, 2006 (14) CLOSED SESSION The Committee convened at 6:24 p.m. in Closed Session, pursuant to Sections 54956.9(b)and 54957(b)(1), to discuss three matters. Minutes of the Closed Session are on file with the Board Secretary. Confidential Minutes of the Closed Session held by the Steering Committee have been prepared in accordance with Government Code Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. A report of the recommended actions will be publicly reported at the time the approved actions become final. At 7:00 p.m., the Committee reconvened in regular session. (15) ADJOURNMENT The Chair declared the meeting adjourned at 7:00 p.m. Submitted by: Gail Garrett Steering Committee Secretary n w W wwm.n.c cm�+invmmonazcoe u awn awFr.s ec 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, May 24, 2006, was duly posted for public inspection in the main lobby of the Districts offices on Thursday, May 18, 2006. IN WITNESS WHEREOF, I have hereunto set my hand this 24th day of May, 2006. Penny Kyle, Secr6tary of th oard of Directors of Orange County Sanitation District Posted: May 18, 2006, 12:00 P.M. By. l Signature H Nept�Wg zl lB nng C MmdlQe�IFIMlips For do ORANGE COUNTY SANITATION DISTRICT • p NOTICE OF MEETING V 141 962 2411 t7+47962413156 STEERING COMMITTEE la.l.ma.tt�, .Him ad. Po 9 B127 ORANGE COUNTY SANITATION DISTRICT r hWh Whey lit 92720-812] U. taa.: t oe44tl5anwnae Fountain Valley.IA WEDNESDAY, MAY 24 2006 - 5:00 P.M. 927I)8-]01B [m es DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE Ewa FOUNTAIN VALLEY, CALIFORNIA 92708 Anaheim www-ocsd.com Brea Buane Perk 0". Pouh�vm Wlley Fullermn ben r,n'a A regular meeting of the Steering Committee of the Hhho,mn Beach erne Board of Directors of the Orange County Sanitation District, will be held at the above location, date and P°Ima Laa Mhh.na time. B /Vmqn^ aecM1 Uwnge Fecenue Santa Ane Swat Beach T. usun uua na:v Yarhe Linae Ctonry of Orange Mhltery Olebitct rl We mnlw y U[y wee. OlsMltte rvw Ranch H:\dept\agenda\Steering Committee\2006 WSC Meeting Notice Fonn.t.doc To mam[ain .,idgless Ieadersh,p in wastewater end water resource management. STEERING COMMITTEE AND BOARD MEETING DATES FOR THE NEXT TWELVE MONTHS 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:\dep0agenda\steering Committee\2006\Meebng Dates Form.2.d= STEERING COMMITTEE (1) Roll Call: Meeting Date: May 24 , 2006 Meeting Time: 5:00 p.m. Meeting Adjourned: P.M. Committee Members Steve Anderson, Board Chair............................................._ Jim Ferryman, Board Vice Chair......................................... Darryl Miller, FAHR Committee Chair................................. Carolyn Cavecche, OMTS Committee Chair.......................— Tod Ridgeway, PDC Committee Chair................................ JimSilva. 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 Finance/Treasurer Gail Garrett, Committee Secretary Other Staff Present Bret Colson, Public Information Manager c: Lenora Crane H WepnagendatSteenng Commltlee zoomoll Call Sheet Foan.Idoc AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, MAY 24, 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 (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 April 26, 2006 Steering Committee meeting. FND OF CONSENT CALENDAR Consideration of items deleted from Consent Calendar, if any. -2- May 24, 2006 Agenda (8) ACTION ITEMS (9) INFORMATIONAL ITEMS a. Strategic Initiatives b. Review Agenda Items scheduled to be presented to Committees in June (Information item only) C. Review and consideration of Agenda Items for Board of Directors Meeting of May 24. 2006 (10) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY (11) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT 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, June 28, 2006. The next Board Meeting is scheduled for 7 p.m., Wednesday. June 28. 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 dosed 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- May 24, 2006 Agenda A. Convene in closed session, if necessary 1. Confer with General Counsel -Anticipated Litigation. Significant Exposure to Litigation, Government Code Section 54956.9(b). One (1) potential case. 2. Confer re Employee Performance Evaluation—Director of Information Technology. [Government Code Section 54957(b)(1)]: one matter 3. Confer re appointment of Assistant General Manager. Government Code 54957(B)(1). B. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session. (15) ADJOURNMENT Aaenda Postina: 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 Ise 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). Meeting 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). 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: 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 meeting. -4- May 24, 2006 Agenda 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: GGanett@ocsd.com eWEFlNGE ISTEfRIxG CGMYniEEVaoBu WN4 nGEH {OW400C 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 Districts Administrative Office. (t) 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 No appointment was necessary. (3) PUBLIC COMMENTS 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 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. j Huntington Beach new Warner Avenue Lift Station and sewers—As a follow up to the Mc Ruth's letter 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 Steering Committee Page 3 Apri126, 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 SCCW RP 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 carried 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. i Minutes of the Steering Committee Page 4 April 26, 2006 (12) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR 1 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 by: Gail Garrett Steering Committee Secretary Hvequp,geWes,sp CamNnV W6�w�oalBW SC AYxnea OHAFi S.abc STEERING COMMITTEE Me /24bng Date 5 To[W.or Dir. AGENDA REPORT Item Number Item Number 9(a) Orange County Sanitation District FROM: James Ruth, General Manager Originator. Lorenzo Tyner, Director of Finance[Treasurer SUBJECT: STRATEGIC INITIATIVES GENERAL MANAGER'S RECOMMENDATION Informational item. SUMMARY Over the next two years, the District will begin and complete many activities central to the goals of the organization. As part of the strategic planning process, staff has reviewed all of these activities and has identified ten that it would consider highly strategic and worthy of particular focus: 1. Local Sewer Services 2. Secondary Treatment Interim Operations 3. Research Evaluation and Alignment 4. Odor Nuisance Policy 5. Engine Emission Compliance 6. Business Plan - No update available 7. Asset Management 8. Manage and Optimize a Sustainable Biosolids Program 9. Plan and Maintain a Sustainable Capital Improvement Program 10. Enterprise Information Technology Strategic Plan Resources have been reallocated from lower priority activities within the organization to support these strategic initiatives. This informational report provides a summary of these initiatives and additional detail for each item. Staff will report quarterly to the General Manager on the progress of each initiative. In parallel, the General Manager will begin the development of a comprehensive strategic plan and District goals for the Board review and adoption. PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECTICONTRACT COST SUMMARY N/A BUDGETIMPACT ® Not applicable (information item) HId.01M,ndelS.,C..(1m40W10M524N S(.)SC AR St ,t ,Im1.1,w,d. R. .d:ndrowe Pagel ADDITIONAL INFORMATION Strategic Initiatives—Summary 1) Local Sewer Services Determine the District's role in local sewer ownership, operations and maintenance issues, adjust the business plan and funding needs accordingly, and/or transfer the assets to another owner. 2) Secondary Treatment Interim Operations We are continuously operating secondary facilities to produce the best quality ef0uent practicable, consistent with the Board's 2002 Resolution, although it exceeds our interim effluent limits. This initiative revisited the intent of the Board to confirm that there is an understating regarding operations, the costs and risks and strategic alignment with District goals. 3) Research Evaluation and Alignment Research a range of activities carried out by various divisions for many reasons, including regulatory compliance, operational problem solving, design information generation, and environmental stewardship. This initiative seeks to identify program stricture and other changes that will improve the success of these efforts and are consistent with OCSD priorities and needs. 4) Development of an Odor Nuisance Policy Develop an odor policy that establishes a level of service that will be implemented through future capital investment. 5) Engine Emission Compliance Develop an engine (diesel and gas)emissions compliance strategy and an OCSD policy to meet AQMD requirements, which will be implemented through future capital investment. 6) Business Plan Develop a strategic business planning process and a long-term sustainable business plan that establishes program objectives and initiatives to fulfill OCSD's vision and mission. The purpose of the business plan is to document and coordinate all of the agency's strategic objectives, communicate these to all affected stakeholders, and provide a tool to instill accountability across the organization for meeting the strategic objectives. 7) Asset Management Program Continue to implement an agency-wide asset management program to minimize the total cost of asset ownership leading to better business decision-making across the agency. 8) Manage and Optimize a Sustainable Biosolids Program Manage biosolids in a long-term, cost-effective, environmentally-sensitive and socially acceptable manner that optimizes the increasing volume of biosolids produced from the wastewater system. 9) Plan and Manage a sustainable Capital Improvement Program Plan and manage the Capital Improvement Program to optimize investments in infrastructure, balancing level of service, risk, and user rates. 10) Enterprise Information Technology Strategic Plan Develop and implement an Enterprise Information Technology Strategic Plan which will support OCSD's business plan and guide the acquisition, management, and use of information technology within the agency for a three to five-year period. N Wapupmaa45ietnry CemnneeV006`9S053aW 91a15C M stntryc M494M5.0% aa,,,.a. o,ro.ros Page 2 1) LOCAL SEWER SERVICES Description Decide the agency's role in local sewer ownership, operations and maintenance issues, adjust the business plan and funding needs accordingly, and/or transfer the assets to another owner. Strategic Importance • Understanding the true costs of ownership and the local sewer fee revenue streams. • Understanding future rehabilitation and possible replacement needs on pipes and manholes. • Maintaining good service based on customer feedback. Outcome • An adequately resourced local sewer Operation and Maintenance program meeting our desired level of service needs. • Reduction in subsidies from the regional sewer program. • An increased understanding of the current program risks, and support for either securing an adequate revenue stream, or supporting locating local sewering cities or agencies to which to transfer assets. Opportunities • Ability to shift staffing to regional programs and minimize staff additions in the future, if we transfer ownership to others. • Minimize risks of sewer spills and their resulting fines that occur more frequently in the smaller diameter local sewers than in the medium and large diameter regional sewers. Timeline A sub-task of the current Asset Management Program is underway to attempt to understand the current revenue stream received from a portion of the County Property Tax. This sub-task activity could be held up depending on the fate of the Asset Management Program. Next Steps • Establish a clear staffing and budget work plan. • Determine the role of the Asset Management Program or the use of outside consultants. • Identify other local agencies that might be interested in a transfer of ownership. • Understand if there are any LAFCO implications. 2) SECONDARY TREATMENT INTERIM OPERATIONS We are continuously operating secondary facilities to produce the best quality effluent possible, consistent with the Board's 2002 Resolution, although it is more than we need to meet Our interim effluent limits. At the December 2005 Operations, Maintenance and Technology Committee Meeting and February 2006 Board Meeting, staff made informational presentations reviewing our current operation, costs and effluent quality. Projections of future effluent quality and costs were presented through 2012,when our secondary treatment expansion is completed. The Board of Directors did not direct staff to reduce the current level of secondary treatment. This initiative Is consider completed. N'CapNBmUntSlavine�w����a'�5'�<OB&e15C M SM4plt Irv4euvm.Uoc •..,�: o,� Page 3 3) RESEARCH EVALUATION AND ALIGNMENT Description Research includes a range of activities carried out by various divisions for many reasons, including regulatory compliance, operational problem solving, design information generation, and environmental stewardship. This initiative seeks to identify program structure and other changes that will improve the success of these efforts while ensuring they are consistent with OCSD's agencies priorities and needs. Strategic Importance Planned and well coordinated research will benefit the District in the following ways: a) Find ways to improve current operations. b) Evaluate alternatives to identify the best solution to a current problem. c) Apply the best technology for new capacity/rehabilitation of existing structures/equipment. d) Ensure that options to comply with current and future regulatory compliance requirements are evaluated and the best option selected. e) Short and long-range research plans will be developed focusing on District priorities. f) Consistent funding, tracking and reporting of research activities to Board, management, staff and public. g) Central point of coordination with external research organizations including pursuit of grant funding. Outcomes • Creation of a Research and Development Program whose mission is District research. • Adequately resource the program plan, administer, implement and report out on research efforts • Create R&D Program Steering Committee made up of key department representatives to guide research efforts and ensure that District priorities are being Implemented and communicated out. • Block fund research program from CIP based upon percentage of Operating budget(e.g. 2% -4%). • Pursue grant funds to assist in funding projects, and serve as central point of contact, both internal and external, to the District on all research issues. Opportunities Increase understanding of District research activities among Board members and District staff; ability to focus attention on grant funding opportunities. Next Steps Develop a scope of work to identify the problems with the District's current approach to undertaking research projects; and recommend changes to improve the program and obtain senior management/Board approval for implementing the recommendations: a) Form a Steering Committee made up of key stakeholders to guide process b) Identify issues with current research activities and obtain Board policy agreement c) Survey other wastewater Utilities that are leaders in conducting research to understand: • How they fund research. • How they are structured and staffed. • Type of research conducted and how results are transferred into the agency. d) Recommend an organization structure for the program. e) Brief management(MT and EMT) on proposed Research Program and obtain direction on how to proceed, including whether Board approval is needed. nwayrepanaxwesmp Wim+Ik9�xW&0.5tlsNOBB�e)SGM SMIeplc lnitla4ws.hc xen:ca. o,mane Page 4 4) ODOR NUISANCE POLICY Description Develop an odor policy that establishes a level of service that will be implemented through future capital investment. Strategic Importance Currently, the District does not have an Odor Nuisance Policy leading to a lack of clarity regarding odor control projects, level of service and the resources dedicated to them. With the development of an Odor Nuisance Policy, the Board will establish our Level of Service to the community which will clarify the following for departments: a) Whether odor control is needed when new processes and equipment are added and the type of odor control that should be designed and built to achieve our level of service. b) Whether existing odor control equipment meets our level of service, and if not what changes are necessary. c) How to operate odor control facilities and determine if they are sources of offsite odors. d) How to involve the community in determining whether our desired level of service is being achieved. Outcome Adoption of an Odor Nuisance Policy that will establish a Level of Service to the communities surrounding our treatment plants, collection systems and pumping stations. The policy will contain an implementation strategy that will include odor control design standards for new processes and equipment, a CIP plan for undertaking modifications to existing processes and equipment to bring them up to the design standard for odor control, standards for operation and maintenance of our facilities to achieve the established level of service, and a program for evaluating whether we are achieving our level of service through community involvement and improvements to our odor complaint process. Opportunities To provide the Board with input from the community, and the information necessary to make informed decisions regarding level of service. Next Steps Develop a scope of work to evaluate the current level of odor nuisance to the communities surrounding our two treatment plants. Reach agreement on level of odor in D/T at which odors would not be detected. Evaluate options and associated costs for achieving no odors to communities during normal operations, based upon financial, social and environmental considerations. Recommend the best alternatives for each plant. Discuss recommendations and proposed odor nuisance policy with management and obtain Board approval: a) Determine D/f value below which odors would not be detected by typical person. b) Model both treatment plants to determine level of service options for odor nuisance to the community and associated costs to achieve the various level of services. c) Conduct Triple Bottom Line analysis of options developed in task 2. d) Form odor summit team to review results from tasks 2 & 3 and make recommendations on option for each treatment plant. e) Develop odor nuisance policy based upon recommendations from task d. f) Brief management(MT and EMT) on recommended options and proposed policy. g) Board briefings and adoption of policy. N mepNpenUc�Slevine�^�htt' bds`Os}aos W.)sc ars sva,epm Luwuwa.arc w,,.�:u,m." Page 5 5) ENGINE EMISSION COMPLIANCE Description Develop an engine (diesel and gas)emissions compliance strategy and an OCSD policy to meet AQMD requirements, which will be implemented through future capital investment. Strategic Importance New regulations governing emissions from diesel engines and changes to how we measure air toxic emissions from Central Generation System gas engines has resulted in levels of air toxic emissions from our two treatment plants and the resulting health risk exceeding standards established by the South Coast Air Quality Management District(SCAQMD)and the California Air Resources Control Board (CARB). Currently, both treatment plants exceed one or both of the SCAQMD standards for carcinogenic risk, chronic hazard, or acute hazard. Outcome Determination as to: a) Whether to control emissions of air toxies to levels that do not require annual notification to affected residents and businesses. b) How to address on-site air toxic risks to employees that are not regulated by SCAQMD/CARE. c) Once direction is received from the Board, CIP projects can be developed to implement the selected approach. Opportunities To provide the Board necessary Information to make informed emission level of service decisions. Next Steps Develop a scope of work including Air Toxics Emission Reduction Strategic Plan for the two treatment plants that includes: modeled impacts to off-site residents and businesses and on- site workers through 2012, identification of emission sources contributing to health risks, required controls and associated costs to reduce health risks below regulatory standards, and a schedule to accomplish implementation of controls. In addition, pilot testing of two technologies to evaluate effectiveness and cost in controlling air toxic emissions. a) Determine emission sources and levels for baseline year 2006. b) Model both treatment plants to determine off-site and on-site health risks and compare to regulatory standards. c) Develop options to reduce off-site health risks to below regulatory standards. d) Conduct Pilot-testing on timed pre-combustion chamber technology for CGS engines. e) Determine emission sources and levels for 2012 future facilities. f) Model both treatment plants to determine off-site and on-site health risks and compare to regulatory standards. g) Develop options to reduce off-site and on-site health risks to below regulatory standards. h) Conduct pilot-testing on oxidative catalysts for CGS engines. i) Develop health risk impacts, conclusions, and recommendations for controls and costs. j) Brief management (MT and EMT)on recommended options. k) Board briefings and policy direction to staff. NJeap��apnalSrevingC.omnaee�xoosW5N5xaa 8�a1 u a+�+�w�c�re4eevn uoc %ww:01MM Page 6 6) BUSINESS PLAN Description—A Strategic Business Plan is essential to the sustainability of any enterprise, whether in private or in government. In addition to Vision and Mission Statements, an organization needs to articulate how it Intends to achieve its vision and mission now and in the future, and how it intends to evaluate as to whether the vision and mission are being accomplished (i.e., program results). Key components of strategic planning Is to establish program objectives and initiatives to fulfill its vision and mission,to instill accountability and control over its program objectives and initiatives, and to evaluate as to whether the programs objectives and initiatives are being completed efficiency and effectively. A three-year business plan has been identified for completion within the District's Business Plan in FY 2005-06 by the Business Principle Team. Strategic Importance A Strategic Business Plan will: • Address the sustainability of the District. • Identify the programs and initiatives required to accomplish the District's vision and mission. • Substantiate the resources required to support the District's mission now and in the future. • Address the resources required to support environmental goals, objectives, and initiatives. • Assess the District's competitiveness with other California wastewater utilities. Opportunities Provide the tools to assist in the evaluation of the overall efficiency and effectiveness of the agency in meeting Its vision and mission. Next Steps Development of a strategic goals work plan identifying proposed program objectives and initiatives: 1) Develop a comprehensive list of proposed program objectives and initiatives. 2) Identify program objective and initiative costs and FTE resource requirements. 3) Preliminary Manager and EMT Review. 4) Determine and evaluate: • Level of Service • Cost of Service • Risk Assessment • Customer Expectations • Work Plans 5) Obtain Board/Committee Review and Comments. 6) Incorporate Board proposed changes to work plan and roll work plan into the Strategic Business Plan through the Budget development process. HW"AN9M&ASReM g CO„tllRteeQ0451050524099(a)SCAR SOa•91c muaoves.Eo[ RpNs 01MAM Page 7 7) ASSET MANAGEMENT Description— Continue to implement an agency-wide asset management program to minimize the total cost of asset ownership leading to better business decision-making across the agency. Strategic Importance The District's costs and fees have risen and will continue to rise significantly, requiring 10-15 % annual user fee increases through 2014. Our 2005 Asset Management Plan estimated the present replacement value of the District's assets at$5.38 Billion, compared with our 1998 estimate of$2.03 Billion. By 2012,with our new CIP projects in place,the estimate increases to $6.5 Billion. The long-tens O&M and Capital cost implications of this asset valuation requires that we critically review the need to add new assets via our CIP, and that we have plans in place to manage these assets to minimize overall costs. The District has made major commitments to increase its level of service including: 1) Adoption of 100% Secondary Treatment Standards. 2) Increasing reclamation to 70 mgd. 3) Adoption of 100% class °A' biosolids options. 4) Reducing odor potential to reach a zero odor nuisance. 5) Compliance with latest fire and safety code requirements. These levels of service commitments require us to manage cost and risk of failure, while maintaining awareness of the community's willingness to pay. Asset Management is a proven strategy to simultaneously balance level of service, cost of service, risk, and willingness to pay. Outcome The main focus in the next couple of years will be to improve the information that we collect about our assets, and to develop a more rigorous understanding of where the risks are in our collection system and treatment plants so that we can make better decisions about where to spend capital and O&M funds. The outcome will be better decision making by staff and our Board. The Board will know the level of service, cost of service, and risk implications of spending or not spending money on a particular project or program. The triple bottom line of environmental, social, and economic implications will also be better understood, and the Board will feel less overwhelmed by the magnitude of our expenditures. Opportunities: With numerous rehabilitation and refurbishment projects coming up in our CIP, we have the opportunity to apply Asset Management principles in the decision making on these projects. Next Steps Continue implementation of the existing program. HWepNpeW'Sl � 9�a1 SC MSlra4gic uuua.rxs.aoc y,. Page 8 8) MANAGE AND OPTIMIZE A SUSTAINABLE BIOSOLIDS PROGRAM Description Manage blosolids in a long-term, cost-effective, environmentally-sensitive and socially acceptable manner that optimizes the increasing volume of biosolids produced from the wastewater system. Strategic Importance Biosolids management is becoming one of the cost drivers for the district as low—cost options disappear and we are forced to rely on more expensive options. "Host" communities no longer want biosolids in their communities and are becoming vocal in their opposition to the sitting of facilities in their communities. Affected communities are turning against biosolids, making it difficult to continue past practices. While the EPA and State Water Board argue that land application of biosolids is a safe alternative, science is losing out to perception. To remain sustainable, the District must begin to move into new technologies and markets and reduce its reliance on land application of Class B material to agricultural lands. Outcome Implement the recommendations of the biosolids long-range plan. Move into new biosolids technologies and markets that produce high-end consumer products and energy. Implement capital projects to reduce the volume of biosolids that must be hauled off site. Continue to press for in-watershed and in-county management options. Grow public awareness about benefits of biosolids-based compost. Expand the District's member agency compost program to increase the tonnage of biosolids-based compost used in Orange County. Maintain the District's certification under the National Biosolids Program. Update the biosolids chapter in the district's strategic plan. Opportunities Keep the Board of Directors and the public(e.g., BAC)fully informed of the challenges we are facing with biosolids. Make them advocates for long-term diversification, even as it comes with higher costs. Next Steps Development of the breakdown of tasks, schedule, budget to achieve the desired state. H..PNWda15Ie ., %.)sc AR sy,rm In.'d' sd. .M..OMM Page 9 9) PLAN AND MAINTAIN A SUSTAINABLE CAPITAL IMPROVEMENT PROGRAM Description Plan and manage the execution of the Engineering Department Capital Improvement Program to optimize investments in infrastructure while balancing level of service, risk, and user rates. Strategic Importance Engineering CIP projects often require years to design and construct. Long range planning and management of the CIP to meet current and future capacity and level of treatment requirements assures that the required facilities will be in place "just in time"to meet ratepayer's needs most cost-effectively. Ratepayers have an anticipated "level of service and they expect OCSD to meet these expectations by providing reliable service 100%of the time. Ratepayers are sensitive to increases in user fees. Our ability to respond to their current and anticipated level of service requires that facilities be designed and constructed just in time to meet service requirements. Ratepayers (represented by Board members) must trust and accept that staff is spending money very judiciously. Outcome Develop a long-range strategic plan which becomes the basis of developing a detailed CIP. Achieve the highest return on investment i.e. maximum benefit(meet all levels of service)for the lowest possible cost and lowest possible risk. Plan, implement, and manage the CIP to build and maintain infrastructure to meet rate payers' current and future expectations regarding level of service, risk, and user rates. Present and update multiple infrastructure scenarios which provide differing levels of balance between level of service, risk, and user rates to OCSD decision making bodies. Opportunities Use decision science and risk modeling to educate and communicate decisions. Next Steps The Capital Improvement Plan was evaluated for potential modifications and reductions. The result of the evaluation was $474 million in proposed reductions. Two workshops were held with the Board to review the proposed CIP modifications. The revised CIP budget was prepared and will be incorporated into the 2006-07 budget. Interaction with the CIP Oversight Committee will continue as a series of meetings will be scheduled. xbe�npc ftft2ooenm534a%a)SCM Sva c�rceae.ss.mc ne.,w. 01m= Page 10 10) ENTERPRISE INFORMATION TECHNOLOGY STRATEGIC PLAN Description Develop and implement an Enterprise Information Technology Strategic Plan which will support OCSD's business plan and guide the acquisition, management, and use of information technology within the agency for a three to five year period. Strategic Importance To be more efficient and effective, OCSD will leverage technology in support of its operations and business activities to the most appropriate level. Public agencies are expected to align their technology strategies and investments with their business plan. To remain competitive, OCSD will periodically revisit the IT Strategic Plan and align resources and planning in support of the strategic initiatives of the organization. Outcome Execute the action items of the Enterprise Information Technology Strategic Plan. Prioritize, schedule, and coordinate IT resources with the goal of achieving the District's business plan. Review the Enterprise Information Technology Strategic Plan on an annual basis to ensure that the strategy remains consistent with changes in technology and the needs of OCSD. Complete a formal update of the Enterprise Information Technology Strategic Plan every two years to coincide with development of the two year budget. Implement an ongoing process(most likely managed by an Information Technology Steering Committee)to govern the identification and prioritization of information technology opportunities and projects. Opportunities Enable transparent communication with the Executive Management Team, Management Team, Board of Directors, and the public on the status of IT investments. We must also partner with our stakeholders to advocate for information technology solutions that address strategic business requirements. Next Steps This effort will be staff led with assistance from a consulting firth that specializes in IT strategic planning in the public sector. An RFP will be awarded to the most qualified vendor. A Staffing Support request was submitted to the Manager Team for all Divisions as part of the 3-Year Staffing Plan process. The required FTE support is estimated at .02 for each Division for the development of the plan. Once the plan is completed, a yet to be determined level of effort will be required to implement and support the plan. The Enterprise Information Technology Strategic Plan team will develop a breakdown of: • Scope of Work: in progress • Work Breakdown Structure (Tasks): in progress • Schedule: Starting February 1, 2006, through December 2006 The core project team has been assembled. Initial needs research has been completed and the development of a Request for Proposal to consultants is in progress. The project Charter and Job Plan will be completed and submitted to the EMT next quarter. This will clear the way for finalization of the RFP. HMepNppNVSleaNq CammnaaM[61p5bROW A'e15C aR 34ategc lmaa4vda Uoc Page 11 ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS None. R0dep0epaga451ttHn9 oommn�08 NeI SC AR Sd ftc iritiatives.roe R.d: 01MMS Page 12 STEERING COMMITTEE Mmbrg Date To ad.of Dir. 524/e6 AGENDA REPORT Item Number Item Number xbt Orange County Sanitation District FROM: James D. Ruth, Interim General Manager Originator: Gail Garrett, Committee Secretary SUBJECT: June 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 June 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 June: OMTS Committee: 1. Consider Fleet Management Software Award 2. Consider Enterprise IT Strategic Plan 3. Consider J-99 OOBS Rehabilitation Assessment Study Consultant Agreement 4. Consider SP-53 Electronic O&M Manual Consultant Agreement 5. Consider Purchase of Oxygen PDC Committee: 1. Ratify Change Order No. 19 for Job No. 1-2-4, Bushard Trunk Sewer Rehabilitation 2. Ratify Change Order No. 27 for Job No. P1-37, Primary Clarifiers 16-31 and Related Facilities 3. Ratify Change Order No. 8 for Contract No. 7-36, 7-39, 741, Gisler- Redhill Trunk Improvements 4. Ratify Change Order No. 1 for Job No. I-24P, Bushard Trunk Sewer Rehabilitation 5. Ratify Change Order No. 13 for Job. No. J-77, Effluent Pump Station Annex 6. Ratify Change Order No. 7 for Job No. P1-76,Trickling Filter Rehabilitation and New Secondary Clarifiers 7. Ratify Change Order No. 1 for Contract No. 5-51 and 5-52, 140 and A Street Pump Stations at Newport Beach 8. Approve Funding of Two New Cooperative Projects for Job No. J- 73, Cooperative Projects Grant Program 9. Approve PSA Extensions for FE Program Design Consultants PSA Amendments 10. Report on Job N9. P1-97, 66kV Substation at Plant No. 1 FAHR Committee: 1. Consider Succession Management 2. Consider Recruitment Policy 3. Report on Labor Relations Program 4. Report on Meet and Confer Status 5. Consider Renewing Excess Workers Comp, General Liability Insurance, Boiler& Machinery, All-Risk Property Insurances 6. Consider FY 2006/07 and 2007/08 Proposed Material, Supplies & Services Operating and Maintenance Budget 7. Consider Safety Policy—Contractor Safety Program 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 H.mOagwftute ng Co t(eVOwmsi<oe she)Ust a AR raJun-6me ae„K,._.. Page 2 STEERING COMMITTEE MeeMg Dab osnaos 7o ea.of DU. AGENDA REPORT bm Number Ibm Number 9(c 1 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 May 24 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 May 24, 2006 meeting: CONSENT CALENDAR 10. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. (1) Receive and file summons and complaint re Joel Lorenz vs. Orange County Sanitation District, Orange County Superior Court Case No. 06CC05747, in connection with Standby Power and Reliability Improvements, Job No. J-33-1A; and, (2) Authorize General Counsel to appear and defend the interests of the Sanitation District. END OF CONSENT CALENDAR 11. Consideration of items deleted from Consent Calendar, if any. COMMITTEE REPORTS AND RECOMMENDED ACTIONS 12. STEERING COMMITTEE Consent Calendar a. Order draft Steering Committee Minutes for the meeting held on April 26, 2006, to be filed. Non-Consent Calendar b. Review and consideration of agenda items considered by the Steering Committee re the May 24, 2006 meeting. 13. OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE (OMTS) OMTS Consent Calendar a. Order draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on May 3, 2006 to be filed. b. Adopt Resolution No. OCSD 06-10, Support of Biosolids Recycling, and repealing Resolution No. OCSD 02-18. C. Receive and file the FOG Control Study, Phase II - Final Report, dated March 2006, prepared by Environmental Engineering and Contracting, Inc. Non-Consent Calendar d. 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 regular meeting held on May 4 2006, to be filed. b. Ratify Change Order No. 26 to Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37, with Margate Construction, authorizing an addition of$272,749 and 142 calendar days, increasing the total contract amount to $72,361,599. C. Ratify Change Order No. 2 to Headworks Improvements at Plant No. 2, Job No. P2-66, with J.F. Shea Construction, Inc., authorizing an addition of$356,647, increasing the total contract amount to $192,724,912. d. (1)Approve a budget increase of$1,251,353 for a total budget of$11,470,885 for Secondary Treatment Facilities Process Upgrades at Plant No. 2, Job No. P2-47-3; and, (2) Ratify Change Order No. 8 to Secondary Treatment Facilities Process Upgrades at Plant No. 2, Job No. P2-47-3, with Morrow-Meadows Corporation, authorizing an addition of$1,251,353 and a time extension of 17 calendar days, increasing the total contract amount to $7,262,408, and extending the contract completion to February 20, 2006. e. Approve a Professional Services Agreement with Malcolm Pirnie, Inc. providing for engineering services for the Rocky Point Pump Station Replacement, Contract No. 5-50, for an amount not to exceed $2,475,973. N WePLWWdaZ1mdny Cam,Y11e6 WBNTDMN qq Ust a Aft fW May Ba 7.dm ftnW WM Page 2 f. (1)Approve Amendment No. 1 to the Professional Design Services Agreement with Malcolm Pimie, Inc. for preparation of construction documents and to provide construction support services for the Coast Trunk Sewer Rehabilitation, Contract No. 11-26, providing for additional engineering and construction support services at no additional cost due to the savings realized during the preparation of the Preliminary Design Report; and, (2)Approve a reduction of$638,505 to the agreement reducing the total amount to not exceed $1,580,825. g. Approve Amendment No. 2 to the Professional Services Agreements with Geo-Matrix Consultants Inc., Kleinfelder Inc., and Smith-Emery Laboratories, and Amendment No. 3 to the Professional Services Agreements with Ninyo& Moore Geotechnical and Environmental Sciences Consultants to provide for materials testing, inspection, and geotechnical engineering services, Specification No. PSA-2003-175, for a one-year period for an amount not to exceed $150,000 for each agreement($600,000 total). h. Approve Amendment No. 2 to the Professional Services Agreements with Forked Engineering &Surveying, Inc., MDS Consulting, RBF Consulting, and Amendment No. 3 to the Professional Services Agreement with Bush& Associates Inc. to provide for surveying services for capital projects, Specification No. PSA-2003-176, for a one-year period for an amount not to exceed $150,000 for each agreement ($600,000 total). i. Approve Amendment No. 3 to the Professional Services Agreement with Electrical Reliability Services, Inc. and Amendment No. 2 to Professional Services Agreement with Hampton-Tedder Electric Inc. to provide for electrical acceptance testing services, Specification No. PSA-2003-177,for a one-year period for an amount not to exceed $150,000 for each agreement($300,000 total). j. Approve Amendment No. 7 to the Professional Service Agreement with Tran Consulting Engineers for additional construction support services for Sunflower Interceptor Manhole Rehabilitation, Contract No. 7-21,for an additional amount of$30,688, increasing the total amount not to exceed $644,983. k. Approve funding for four new Cooperative Projects with the Cities of Huntington Beach, Newport Beach, Placentia, and Santa Ana, for a total amount not to exceed $1,515,297, as recommended by the Cooperative Projects Grant Committee. I. Consider the following actions relating to the purchase of certain real property interests in connection with Replacement of Bitter Point Pump Station, Contract No. 5-49: (1)Approve a Purchase and Sale Agreement with Horizontal Development LLC regarding an approximate one-third acre parcel, in an unincorporated area that is located near the Banning Ranch Pacific Coast Highway entrance for an amount not to exceed $160,000, in a form approved by General Counsel; (2)Authorize the General Manager to execute all Deeds and other evidences of title to the parcels of property, subject to the Purchase and Sale Agreement; X WryIWJmaalSMNMLtl,P,vn1100AD5tl53K8 Mcl un a Aft May BaaNar.]aoc ft� a Page 3 (3)Authorize the General Manager to execute any and all other instruments I related to the transaction with Caltrans for an amount not to exceed $40,000, in a forth approved by General Counsel; (4)Approve an agreement with the City of Newport Beach to quitclaim the Bitter Point Pump Station property in connection with Replacement of Bitter Point Pump Staton, Contract No. 5-49, for an amount not to exceed $90,000, in a form approved by General Counsel; and, (5)Authorize the General Manager to execute any other agreements necessary to acquire said property for an amount not to exceed $20,000. M. Approve Amendment No. 6 to the Professional Services Agreement with Integrated Program Management Consultants, a joint venture of Parsons Infrastructure &Technology Group, Inc., and CH2M Hill, Inc., authorizing: (1) Establish an amount not to exceed $14,999,656 for year five (Fiscal Year 2006-07)of the five-year contract; and, (2) Increase the total amount of the five-year contract to an amount not to exceed $60,092,039. n. Approve Change Order No. 1 to Bushard Trunk Sewer Rehabilitation, Jab No. 1-2-4A, with Mike Bubalo Construction Company, Inc., authorizing a no cost value engineering change proposal clause addition to the contract. Non-Consent Calendar 0. Consideration of items deleted from PDC Consent Calendar, if any. 15. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR Consent Calendar a. Order draft Finance,Administration and Human Resources Committee Minutes for the meetings held on April 19. 2006, and May 10, 2006,to be filed. b. Receive and file report of General Manager approved purchases in amounts exceeding $50,000 in accordance with Board purchasing policies. C. Receive and file the FY 2005-06 Quarterly Financial Management Report for the period ended March 31, 2006. d. Approve extension of the commercial lease with Nautical Enterprises, Inc., dba H & S Yacht Sales from the original expiration date of May 31, 2006, to the extended expiration date of December 31, 2007. e. Adopt Resolution No. OCSD 06-11, Establishing a Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and Meeting Attendance and Compensation; and Repealing Resolution No. OCSD 06-09. I N:WepM1t0b4a451Benng CommlleeVOWN5W5]<W 9Ic)Its,ofF0.5 W A ,B Nrer>0x R.�..d:a OM Page 4 f. Approve the Second Amended and Restated Memorandum of Understanding Agreement re: Additional Retiree Benefit Account with the Orange County Employees Retirement System. g. Receive and file Independent Rate Study dated May 2006, prepared by Bartle Wells Associates. FAHR Non-Consent Calendar h. Consideration of Items deleted from FAHR Consent Calendar, if any. 16. LEGISLATIVE AFFAIRS COMMITTEE a. Order Legislative Affairs Committee Minutes for the meeting held on May 9, 2006 to be fled. 17. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar a. Order Joint Groundwater Replenishment System Steering Committee Minutes for the meeting held on April 10, 2006, to be filed. b. Approve Amendment No. 13 to the Professional Services Agreement with Camp Dresser& McKee, Inc., providing for the annual cost-of-living adjustment for 2006 and additional out of scope work items for the Groundwater Replenishment System, Job No. J-36, for an additional amount of$219,970, increasing the total amount not to exceed $34,335,753 to be equally shared with the Orange County Water District. GWRSSC Non-Consent Calendar C. Consideration of items deleted from GWRSSC Consent Calendar, if any. NON-CONSENT CALENDAR 18. Approve License for Access Purposes Agreement with SWEPI LP for gathering geotechnical data for the Carbon Canyon Sewer and Pump Station Abandonment, Contract No. 2-24-1, in a form approved by General Counsel, at no cost to the Sanitation District. 19. Approve a Three Party Out-of-Service Area Sewer Service Agreement for the Aare Master Planned Community with Aare Energy and Rowland Water District, in a form approved by General Counsel. 20. (a)Adopt Resolution No. 06-12, Certifying the Initial Study/Negative Declaration for the MacArthur Pump Station Rehabilitation Project, Contract No. 749, prepared by CH2MHill; and, (2)Approve the MacArthur Pump Station Rehabilitation Project, Contract No. 7-49. xWeONemWlR1eaIMCprtmdroV!008'AS`➢51dC8%C)LM&Aft Iw M,BVM.U.d. n,xx,:a2aoe Page 5 21. (a)Approve a progress payment to Ameron Intemational, Inc. for$75,169 in accordance with the contract terms for Bushard Trunk Sewer Rehabilitation Pipe Procurement,Job No. 1-2-4P; and, (b)Authorize the General Manager, or his designee, to approve all subsequent invoices submitted by Ameron International, Inc. for payment under Job No. 1-2-4P. 22. Adopt 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. Open meeting 1. Receive and file written comments, if any 2. Verbal reports of staff 3. Directors'questions 4. Public comments b. Close meeting C. Discussion by Board of Directors d. Recommended actions: 1. 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 majority vote of Directors present.) 2. Motion to adopt Ordinance No. OCSD-27, An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Speed Revenue Areas within the District, and Repealing Ordinance No. OCSD-02 23. Adopt Ordinance No, OCSD-29, An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Pees, Procedures, and Policies Concerning Annexations of Territory to the District, and Repealing Ordinance No. OCSD-21: a. Open meeting 1. Receive and file written comments, if any 2. Verbal reports of staff 3. Directors' questions 4. Public comments b. Close meeting C. Discussion by Board of Directors d. Recommended actions: 1. 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 majority vote of Directors present) x Nep Wft%9 CamwwC1a0fl0 Oft ekl uv aM WWe e® .T0 w.: Wme Page 6 2. Motion to adopt 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. 24. (a) Adopt 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: -----AND ----- (b) Adopt 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. Open meeting a. Receive and file written comments, If any b Verbal reports of staff C. Directors' questions d. Public comments 2. Close meeting 3. Discussion by Board of Directors 4. Recommended actions: a. 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 majority vote of Directors present.) b. Motion to adopt 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. (Must be approved by a 213 vote of the entire Board of Directors.) -----OR----- c. 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 majority vote of Directors present.) M:beple0crdB�leennB Cpmrt11eM2WBA'N520dB9�c)UM MAW W W,Bwid'01.1 da W�W mom Page 7 d. Motion to adopt 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 Pennittees and Wastehaulers, and Repealing Ordinance No. OCSD-26. (Must be approved by a 2/3 vote of the entire Board of Directors.) 25. a. Adopt Resolution No. OCSD 06-13A, directing the County Tax Collector-Treasurer to include sanitary sewer service charges on the 2006-07 property tax bill. -----OR--- -- b. Adopt Resolution No. OCSD 06-13B, directing the County Tax Collector-Treasurer to include sanitary sewer service charges on the 2006-07 property tax bill. 26. Closed Session PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION NA ALTERNATIVES NA CEQA FINDINGS Not a project. ATTACHMENTS NA 99 H WepNgwWa�g GmmIWM1008W5W54W WO WI a Nb 1w Wv ea.x JAM Page 8 ORANGE COUNTY SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley, Califomia 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018