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HomeMy WebLinkAbout2006-11 MINUTES OF STEERING COMMITTEE MEETING FILED IN THE OFFICE OF THE SECRETARY Orange County Sanitation District ORANGE nou1,,- r •-- MSTRICT Wednesday, November 15, 2006, at 5:00 p.m. DEC 2 0 2006 1 K. A meeting of the Steering Committee of the Orange County Sanitation DistnctVMS-- ---- -- held on Wednesday, October 25, 2006 at 5:00 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: STAFF PRESENT: Directors Present: Jim Ruth, Interim General Manager Jim Ferryman, Chair Bob Ghirelli, Acting Assistant General Manager Doug Davert, Vice Chair Nick Arhontes, Director of Regional Assets and Carolyn Cavecche, Chair, OMITS Committee Services Tod Ridgeway, Chairman, PDC Committee Jim Herberg, Director of Operations and Darryl Miller, Chairman, FAHR Committee Maintenance Steve Anderson, Past Board Chair Lorenzo Tyner, Director of Finance and Administrative Services Directors Absent: Norbert Gaia, Information Tech Analyst III Jim Silva, County Supervisor Michael Gold, Legislative Affairs Liaison Simon Watson, Maintenance Manager Rob Thompson, OTHERS PRESENT: Karen Jackson, IT Supervisor Bradley R. Hogin, General Counsel Gail Garrett, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were none. (4) REPORT OF THE COMMITTEE CHAIR The CASA Spring Conference will be held in Indian Wells, January 17-20, 2007. Seats are still available at the Chapman University's Economic Forecast at the Irvine Hyatt Regency December 7. Notify Gail Garrett if you wish to attend either event. Chair Ferryman, Director Anderson, and staff will travel to Washington DC at the end of the month to meet with congressional staff to discuss legislative and grant programs. He announced the upcoming committee meetings for December and advised that the Board and Steering Committee meetings for December are scheduled one week earlier due to the holiday season. A social will follow the Board meeting. Minutes of the Steering Committee Page 2 November 15, 2006 (5) REPORT OF GENERAL MANAGER a. Status Report General Manager Jim Ruth reviewed activities included in his November Status Report, which was included with the Board package. Director Miller, Chair of the FAHR Committee, informed that a white paper will be presented to the Board on the John Bartel benefits study. b. Legislative Affairs Michael Gold provided a legislative update giving a brief summary of the Federal and California State election results. (6) REPORT OF GENERAL COUNSEL General Counsel Brad Hogin provided a brief update on the Kern County biosolids lawsuit. US District Court Judge Gary Feess' preliminary ruling was to prohibit enforcement of the ban to ship biosolids to Kern County until a higher court has ruled on the legality of the ordinance. Feess plans to certify the case to the 9' US Circuit Court of Appeals, which may send it to the State Supreme Court. His final ruling is expected in a few days. (7) CONSENT CALENDAR ITEMS a. MOVED, SECONDED AND DULY CARRIED: The minutes of the October 25, 2006 Steering Committee meeting were approved as revised. END OF CONSENT CALENDAR (8) ACTION ITEMS a. MOVED, SECONDED AND DULY CARRIED: Recommend to the Board to adopt the 2007 Legislative Platform and Goals Michael Gold presented the 2007 Legislative Platform explaining that the policy statements from 2006 had not been modified but the new platform did include the goals developed at the October Legislative Strategic Planning session and the procedures adopted by the Steering Committee a few months back. The Platform was adopted without dissent. b. MOVED, SECONDED AND DULY CARRIED: Recommend to the Board to authorize a one-year renewal to the agreements for State and Federal Advocacy services from January 1, 2007 through December 31, 2007, in a form approved by General Counsel, as follows: Sacramento Representatives Scott Baugh (currently with Platinum Advisors) Townsend Public Affairs (TPA) $5,000 per month $5,000 per month Minutes of the Steering Committee Page 3 November 15, 2006 Federal Representatives Eric Sapirstein and John Freshman (ENS Resources $10,000 per month and Troutman Sanders Public Affairs) Michael Gold requested extending the contracts for all legislative advocates through the end of 2007. He explained that with the inclusion of goals and the new position of Legislative Affairs Liaison, staff recommends giving the current program one additional year to evolve and the Steering Committee would discuss various options for further legislative advocacy services in mid-2007. Director Ridgeway stressed the importance of hiring lobbyists and having a structured legislative program. The contracts were approved unanimously. C. MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to: 1. Adopt Resolution No. OCSD 06-25, Establishing Rules of Procedure for the Conduct of Business of the District;and, Repealing Resolution No. OCSD 04- 15; and, 2. Adopt Resolution No. OCSD 06-26, Establishing Policies and Procedures for the Award of Purchase Orders and Contracts; Award of Public Works Project Contracts; Professional Services Contracts; and Delegation of Authority to Implement said Policies and Procedures; and Repealing Resolution No. OCSD 04-08. Bob Ghirelli made one correction to Item L(1)(c), informing that the Engineering and Operations Committee will meet on Wednesdays, not on Thursdays. (9) INFORMATIONAL ITEMS a. The Agenda Items scheduled to be reviewed by the Board's working committees in November were reviewed- b. The agenda items scheduled to be presented to the Board at the October 25, 2006 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 Minutes of the Steering Committee Page 4 November 15, 2006 There were none. (13) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, December 20, 2006 at 5 p.m. The next Board Meeting is scheduled for Wednesday, December 20, 2006 at 7 p.m. (14) CLOSED SESSION The Committee convened at 5:55 p.m. in Closed Session, pursuant to Sections 54956.9(a)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 6:30 p.m., the Committee reconvened in regular session. (15) ADJOURNMENT The Chair declared the meeting adjourned at 6:30 p.m. Submitted by: Gail Garrett Steering Committee Secretary N.lbpbpenOWe �WeSM27MXMC $C T5h¢ " ORANGE COUNTY SANITATION DISTRICT f7141962-241124tt (714)9620 56 NOTICE OF MEETING www..otl.wm alh w.BB8127 P0. wflB1[A STEERING COMMITTEE Fw, 92 28-8.27 92728-8127 .teaae.tlE,a.a: 10844 BI15 Avenue Poncaln wll,C ORANGE COUNTY SANITATION DISTRICT 92708-7018 M anher "aeacim WEDNESDAY, NOVEMBER 15, 2006 - 5:00 P.M. • Mi.. Anehaam ere. DISTRICT'S ADMINISTRATIVE OFFICES a.. Perk 10844 ELLIS AVENUE F .'h Mal" FOUNTAIN VALLEY, CALIFORNIA 92708 Fullerton ca,aan s www.ocsd.com H hong[on Beech Irvine Le He&. La Palma Los Mamma Newpar[Beach A regular meeting of the Steering Committee of the aa„ge Pa h'c Board of Directors of the Orange County Sanitation Sanra AnanDe District, will be held at the above location, date and Seal Beech Brannan time. r.sun Va. Park ymina L,nd. .uney N Or.nya �kaM Ohs,icsa Los-ra Mesa "p y Gky �I.tae Oiatelcaa bvirm Bench HAdepllagendalSleedng COmmllleeVOWSC Meeting Nogce Fonn.t.doc STEERING COMMITTEE AND BOARD MEETING DATES FOR THE NEXT TWELVE MONTHS 'Wednesday, November 15, 2006 'Wednesday, December20, 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 "Wednesday, July 18, 2007 Wednesday, August 22, 2007 Wednesday, September 26, 2007 Wednesday, October 24, 2007 Wednesday, November21, 2007 Wednesday, December 19, 2007 'Tentatively rescheduled from regular fourth Wednesday. H.WepflagendaX teeft C=mlttW2006Weeting Dates Fon.2.doc STEERING COMMITTEE (1) Roll Call: Meeting Date: November 15, 2006 Meeting Time: 5:00 p.m. Meeting Adjourned: p.m. Committee Members Jim Ferryman, Board Chair.................................................— _ Doug Davert, Vice Chair.....................................................— — Darryl Miller, FAHR Committee Chair.................................— _ Carolyn Cavecche, OMTS Committee Chair.......................— _ Tod Ridgeway, PDC Committee Chair................................_ Jim Silva, Supervisor..........................................................— — Steve Anderson, Past Board Chair..................................... Others Brad Hogin, General Counsel Don Hughes Staff Present Jim Ruth, Interim General Manager Bob Ghirelli, Acting Assistant General Manager Nick Arhontes, Director of Regional Assets &Services Jim Herberg, Director of Operations & Maintenance John Linder, Acting Director of Engineering Patrick Miles, Director of Information Technology Ed Torres,Acting Director of Technical Services _ Lorenzo Tyner, Director of Finance &Administrative Services Gail Garrett, Committee Secretary Other Staff Present Michael Gold, Legislative Affairs Liaison c: Lenora Crane H:1depMagenda6Steering Commidee120g6 M3.Roll Call Sheet Fo m.3.doo AGENDA REGULAR MEETING OF THE STEERING COMMITTEE WEDNESDAY, NOVEMBER 15, 2006 - 5:00 P.M. ORANGE COUNTY SANITATION DISTRICT 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. Report on American Society of Civil Engineers' Peer Review of the Engineering Department C. Legislative Affairs Liaison 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 October 25, 2006 Steering Committee meeting. END OF CONSENT CALENDAR -2- November 15, 2006 Agenda Consideration of items deleted from Consent Calendar, if any. (8) ACTION ITEMS a. Recommend to the Board to adopt the 2007 Legislative Platform and Goals b. Recommend to the Board to authorize a one-year renewal to the agreements for State and Federal Advocacy services from January 1, 2007 through December 31, 2007, in a form approved by General Counsel, as follows: Sacramento Representatives Scott Baugh (currently with Platinum Advisors) $5,000 per month Townsend Public Affairs (TPA) $5.000 per month Federal Representatives Eric Sapirslein and John Freshman (ENS Resources $10,000 per month and Troutman Sanders Public Affairs) C. Recommend to the Board of Directors to: 1. Adopt Resolution No. OCSD 06-25, Establishing Rules of Procedure for the Conduct of Business of the District; and, Repealing Resolution No. OCSD 04- 15; and, 2. Adopt Resolution No. OCSD 06-26, Establishing Policies and Procedures for the Award of Purchase Orders and Contracts; Award of Public Works Project Contracts; Professional Services Contracts; and Delegation of Authority to Implement said Policies and Procedures; and Repealing Resolution No. OCSD 04-08. (9) INFORMATIONAL ITEMS a. Review Agenda Items scheduled to be presented to Committees in November (Information item only) b. Review and consideration of Agenda Items for Board of Directors Meeting of November 15, 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 -3- November 15, 2006 Agenda (13) FUTURE MEETING DATES The next Steering Committee Meeting is scheduled for 5 p.m.,Wednesday, December 20, 2006. The next Board Meeting is scheduled for 7 p.m., Wednesday, December 20, 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. A. Convene in closed session, if necessary 1. CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION (Subdivision (a)of Section 54956.9) Case: Nguyen& Pham v. OCSD, at al.,Orange County Superior Court, Case No. 06CC11453 2. PUBLIC EMPLOYEE APPOINTMENTS (Government Code Section 54957(b)(1)) Title: Assistant General Manager Title: Director of Engineering Title: Director of Operations & Maintenance Title: Director of Technical Services 3. PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE (Government Code Section 54957(b)(1)) B. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session. (15) ADJOURNMENT Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. -4- November 15, 2006 Agenda 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. Al 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 adjoumed 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. Notce 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. Committee Chair: Jim Ferryman (714)283-5910 ext. 123 Interim General Manager: James D. Ruth (714)593-7110 General Counsel: Brad Hogin (714)564-2606 Committee Secretary: Gail Garrett (714)593-7101 (714)9684389 (Fax) E-mail: gnartett�omd.com HMEPMGWDA4 ERING COWMEE13MlTAA 115W AGENDA FOWADOC MINUTES OF SPECIAL MEETING OF STEERING COMMITTEE RE LEGISLATIVE GOAL SETTING WORKSHOP & REGULAR STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, October 25, 2006, at 2:30 and 5:00 p.m. A special meeting of the Steering Committee for a Legislative Goal Setting Workshop and a regular Steering Committee meeting of the Orange County Sanitation District was held on Wednesday, October 25, 2006 at 2:30 p.m. and at 5:00 p.m., in the District's Administrative Office. I. 2:30 P.M.—LEGISLATIVE GOAL SETTING WORKSHOP STEERING COMMITTEE MEMBERS: STAFF PRESENT: Directors Present Jim Ruth, Interim General Manager Bob Ghirelli, Acting Assistant General Manager Jim Ferryman, Chair Michael Gold, Legislative Affairs Liaison Doug Davert, Vice Chair Tod Ridgeway, Chairman, PDC Committee Darryl Miller, Chairman, FAHR Committee OTHERS PRESENT: Eric Saperstein, ENS Resources Directors Absent: John Freshman, Freshman and Kest Steve Anderson, Past Board Chair Christopher Townsend, Townsend Public Affairs Carolyn Cavecche, Chair, OMTS Committee Heather Dion, Townsend Public Affairs Jim Silva, County Supervisor Scott Baugh, Platinum Advisors (via phone) Holly Shinstock, Platinum Advisors (1) Public Comments There were none. (2) Goal Setting Workshop Michael Gold began the session by providing a brief overview of the legislative affairs program followed by a presentation of the goals discussed earlier in the day by staff and the lobbyists. The group discussed and refined the goals, offering suggestions and additions. Goals were developed for both State and Federal levels. Mr. Gold explained that the goals and draft 2007 Legislative Platform would be presented to the Steering Committee in November. It. RECESS—4:30 P.m. Minutes of the Steering Committee Page 2 October 25, 2006 Ill. CONVENE AT 5:00 P.M.—STEERING COMMITTEE (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: STAFF PRESENT: Directors Present: Jim Ruth, Interim General Manager Jim Ferryman, Chair Bob Ghirelli, Acting Assistant General Manager Doug Davert, Vice Chair Nick Arhontes, Director of Regional Assets and Carolyn Cavecche, Chair, OMTS Committee Services Tod Ridgeway, Chairman, PDC Committee Jim Herberg, Director of Operations and Darryl Miller, Chairman, FAHR Committee Maintenance Jim Silva, County Supervisor Lorenzo Tyner, Director of Finance and Administrative Services Directors Absent: Norbert Gaia, Information Tech Analyst III Steve Anderson, Past Board Chair Michael Gold, Legislative Affairs Liaison Simon Watson, Maintenance Manager OTHERS PRESENT: Penny Kyle, Board Secretary Bradley R. Hogin, General Counsel Don Hughes (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were none. (4) REPORT OF THE COMMITTEE CHAIR Chair Ferryman announced the upcoming committee meetings for November and the special FAHR Committee Benefits workshop scheduled for Thursday, October 261" at 7:00 p.m. He also advised that the Board Meeting and Steering Committee Meeting for November and December would be scheduled one week earlier due to the holiday season. (5) REPORT OF GENERAL MANAGER a. Status Report Interim General Manager Jim Ruth reviewed activities included in his October Status Report. b. Legislative Affairs Michael Gold provided a legislative update giving a brief summary of the strategic planning session that took place earlier in the day. Minutes of the Steering Committee Page 3 October 25, 2006 (6) REPORT OF GENERAL COUNSEL General Counsel Brad Hogin reported he would be providing ethics training at the Sanitation District on November 70 and 81". He also provided a brief update on Assembly Bill 573, which would limit the Sanitation District's ability to require indemnification on design professionals. (7) CONSENT CALENDAR ITEMS a. MOVED, SECONDED AND DULY CARRIED:The minutes of the September 27,2006 Steering Committee meeting were approved as revised. END OF CONSENT CALENDAR (8) ACTION ITEMS a. MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve a Memorandum of Understanding between the County of Orange, Orange County Water District, Santa Ana Watershed Project Authority and Riverside County Flood Control District for the protection and relocation of the SARI line, in a form approved by General Counsel. b. MOVED, SECONDED AND DULY CARRIED:Authorize the General Manager to negotiate a Memorandum of Understanding with the city of Huntington Beach that will establish a forward plan to transfer the assets from the city of Huntington Beach to the Sanitation District on or about May 2008, in a form approved by General Counsel. C. MOVED, SECONDED AND DULY CARRIED:Authorize up to two Directors and one staff member to visit the Singapore Public Utilities Board facilities. Director Cavecche opposed. (9) INFORMATIONAL ITEMS a. Risk Registry Summary Jim Herberg, Director of Operations and Maintenance, reviewed the District's risk assessment process and those risks determined to be the highest b. The Agenda Items scheduled to be reviewed by the Board's working committees in November were reviewed. C. The agenda items scheduled to be presented to the Board at the October 25,2006 meeting were reviewed. (10) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY There were none. Minutes of the Steering Committee Page 4 October25,2006 (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, November 15, 2006 at 5 p.m. The next Board Meeting is scheduled for Wednesday, November 15, 2006 at 7 p.m. (14) CLOSED SESSION The Committee convened at 5:56 p.m. in Closed Session, pursuant to Government Code Sections 54956.9(b), 54956.9(c), 54956.9 and 54957(b)(1). 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. No reportable actions were taken. Agenda Item 14(a)(5) was not discussed. Director Cavecche left the meeting room during the discussion of Agenda Item No. 14(a)(1). Director Cavecche returned to the meeting room for the discussion of Agenda Item No. 14(a)(2) through 14(a)(4). (15) ADJOURNMENT The Chair declared the meeting adjourned at 6:29 p.m. Submitted by: MV, Penny Kyle Board Secretary Il1lKII,pbWl$RerYp CpmWceVttbWmNsM270 SC M es T5W[ STEERING COMMITTEE meeung Date To ad.or Dir. 11/15/2006 AGENDA REPORT Item Number Item Number 8(a) Orange County Sanitation District FROM: Robert P. Ghirelli, D.Env., Interim Assistant General Manager Originator: Michael Gold, Legislative Affairs Liaison SUBJECT: Adoption of 2007 Legislative Platform GENERAL MANAGER'S RECOMMENDATION Adopt the 2007 Legislative Platform and Goals. SUMMARY At the end of 2005, the Board adopted OCSD's first Legislative Platform to guide staff and the lobbying team in their efforts to promote the District's interests in Sacramento and Washington, D.C. The Board intended the Legislative Platform to be a dynamic document(updated annually)that guides staffs actions on a number of policy issues. For 2007, the Legislative Platform has been updated to include the goals recommended by members of the Steering Committee at the October 25 Legislative Strategic Planning session. These goals, in addition to the policy statements,will guide the legislative affairs team in 2007. The policy statements within the Platform have not been changed or updated. In August 2006, the Steering Committee adopted a set of procedures for taking positions on bills. These procedures are also included in the 2007 Platform. The updated Platform is a more comprehensive document encompassing the major focus areas of the legislative program. PRIOR COMMITTEEIBOARD ACTIONS The Board adopted the Legislative Platform in December 2005 with an update (adding procedures for taking positions on bills) adopted in August 2006. 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 N/A H WeONgmft IlWn LOm llea9 NlllV(a)LeovaiiM%allm AR.dW Page 1 ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 2007 Legislative Platform H:4kpWWda49 nY CV RH V"))�(a)Le9 Ou MaUp AR dm Page 2 Orange County Sanitation District 2007 Legislative Platform Legslat�e Updaks � ll � '� PkaseE�Ek�e6rkl�lavfortl�la(a�L i�a7veTraddagMahi, !� .'~ `�-""'-�i F� Leui&MBIGS.kf.:i�I94: Syr ::._ •-._ .. _.. __ Collaborate - • COS , : 9 C o�3• NC �qc 11��Q Orange County Sanitation District 2007 Legislative Plaffoan Legislative Affairs Team OCSD Staff Michael Gold (714) 593-7529 mgold@ocsd.com Legislative Affairs Liaison Robert Ghirelli (714) 593-7400 rghirelli@ocsd.com Interim Assistant General Manager James D. Ruth (714) 593-7110 jruth®ocsd.som Interim General Manager Federal Lobbying Team Eric Sapirstein (202) 466.3755 asap@ ENS Resources ensresources.com John Freshman (202)274-2850 john.freshman@ Troutman Sanders Public Affairs troutmansanders.com Sacramento Lobbying Team Platinum Advisors Scott Baugh (949) 794-7260 scoftbaugh@aol.com Holly Frumeni-Shinstock (916) 443-8891 hcf® latinumadvisors.com Townsend Public Affairs Christopher Townsend (949) 399.9050 cownsend® TownsencIPA.com Sean Fitzgerald (949) 399-9050 sfitzgeraldO TownsendPA.com Heather Dion (949) 399-9050 hdion* TownsendPA.com 2 Originally Adopted December,2005 Revised August,2006 Orange County Sanitation Distdo 2007 Legislative Plafform Introduction The Orange County Sanitation District(OCSD) recognizes the need for an active State and Federal legislative advocacy program to ensure the interests of the ratepayer and Board of Directors are protected. Towards that end, the legislative affairs team monitors activities in Sacrament and Washington, D.C. and takes appropriate action in support or opposition of legislative initiatives. Each year, the Board of Directors adopts a Legislative Platform, which is a summary of goals, key issues and OCSD's policy position. The following legislative policies have been developed by OCSD staff and legislative advocates in consideration of OCSD service area cities' and policy needs. These Board-approved policies serve as OCSD's official positions of support or opposition on issues of importance to the agency. The Legislative Platform is a dynamic document, adopted annually and changing to the needs of the Board. The legislative affairs team, in conjunction with the Board, may take appropriate action consistent with the Legislative Platform, including, but not limited to, drafting letters, lobbying legislators and staff and crafting bills. Procedure for Taking Positions on Bills 1. Staff will track bills of greatest interest to the District, particularly those that fall within the goals and objectives identified by the Board of Directors. Staff will monitor bills being watched by similar agencies in Orange County (OCWD, MWDOC, etc.) as well as State Agencies such as California Association of Sanitation Agencies (CASA), the California Special Districts Association (CSDA) and the Association of California Water Agencies (ACWA). 2. For those bills that are being tracked where there is clear policy direction stated in the Board-adopted Legislative Platform, staff can send letters and give direction to the lobbyists to advocate that position. 3. Where a particular issue is not urgent, all legislative letters will be hand-signed by the Chair or Vice-Chair. If a matter is urgent, staff may use the signature stamp, so long as a clear policy direction exists. 4. A summary of bills being tracked will be presented to the Steering Committee monthly. 5. When a bill does not fall within the scope of the Legislative Platform or is a politically controversial issue, staff will seek direction from the Steering Committee. 3 Originally Adopted December,2005 Revised August,2006 Orange County Sanitation District 2007 Legislative Pladonn State and Federal Legislative Goals for 2007 State Goals • Sponsor legislation enabling OCSD to utilize design-build specifications for projects over $10 million; • Work with Legislature to ensure maximum opportunities are available for funding through the November 2006 Bond Measures (Propositions 1 E and 84, as appropriate). These efforts will be coordinated with the California Association of Sanitary Agencies (CASA); • Develop an outreach and awareness campaign to ensure a greater understanding of wastewater, infrastructure and property tax protection issues at the State, regional and local levels; • Monitor the implementation of the Global Warming Initiative (AB 32) passed in 2006 and its impacts to OCSD; • Follow efforts related to preemption of the safe land application of biosolids at State and Federal levels; • Explore programs to encourage the use of waterless urinals; and • Plan one trip with Board members to Sacramento to educate legislators about OCSD and its programs. Federal Goals • Build"coastal coalition"to discuss and authorize funding for secondary treatment and pursue linkages to a possible 2008 State Water Bond; • Continue to pursue appropriations for secondary treatment in conjunction with coalition strategy; • In partnership with other SARI partners, pursue appropriations (as needed) for realignment of the Santa Ana River Interceptor Line (SARI); • Coordinate President's Day Weekend tour of OCSD's facilities for Congressional staff; • Follow efforts related to preemption of the safe land application of biosolids at State and Federal levels; • Pursue Homeland Security funding for security-related upgrades to OCSD (in - partnership with Orange County Water District); and • Plan trips with Board members to Washington, D.C. to lobby and educate legislators about OCSD and its programs. 4 Originally Adopted December,2005 Revised August,2006 Orange County Sanitation District 2007 Legislative Platform Federal and State Legislative Policies 1. Air Quality: OCSD is committed to complying with federal, state, and local air quality laws and rules. OCSD is further committed to establishing an odor policy to assure that the district is a good neighbor to the surrounding communities. Therefore, OCSD shall: a. Support air quality legislation that emphasizes the use of advance technologies and applicable market incentives, and incentives for the use of alternative fuels and the development of the infrastructure for alternative fuel vehicles. b. Support measures that maintain and enhance local decision-making authority, where appropriate, in the development and implementation of air quality attainment strategies. c. Support legislation to ensure greater consistency between the Califomia and Federal Clean Air Acts; including the need to demonstrate cost-effective public health or environmental benefit if California elects to exceed federal standards. d. Support strategies that clearly demonstrate and provide for the most cost- effective means for meeting air quality goals. e. Support, in concept, legislation that would utilize incentives and pricing strategies as a preferred alternative to traditional command and control regulations for meeting emission reduction objectives for all sources. f. Oppose actions that preclude implementation of the Air Quality Management Plan (AOMP) to the extent that such actions could subject the basin to sanction or conformity penalties. 2. Biosolfds: OCSD strives to beneficially use biosolids through multiple management options performed at reasonable costs that are protective of public health and the environment.Therefore, OCSD shall: a. Support legislation that supports the use of biosolids as on non-food production agricultural lands. b. Support policies that encourage biosolids product use by horticulture and retail consumers. c. Oppose legislation that bans the use of biosolids for land application in any region, county, or state. d. Support science-based legislation that establishes a state-wide regulatory system for biosolids management. 3. Grant Funding: OCSD is committed to offsetting its research, special projects and wastewater infrastructure project and construction costs by obtaining funding through grants and cooperative agreements.Therefore, OCSD shall: a. Support appropriations legislation, bonds, programs, and projects that provide funding for infrastructure construction and rehabilitation, special studies and research or projects relating to security, environmental education, water quality, wastewater processing, urban runoff, water conservation, and water recycling. 5 Originally Adopted December,2005 Revised August,2006 Orange County sanitation District 2007 Legislative Pladorm b. Support projects that provide for public benefit, over projects that are primarily intended for private benefit or gain. c. Support continued federal funding for protecting and realigning the Santa Ana River Interceptor project and for secondary treatment upgrades. d. Oppose proposals placing further requirements on grant recipients that return low value for high administrative costs. 4. Labor Relations: OCSD is committed to the exercise of and provision of orderly procedures for the administration of employer-employee relations, including, but not limited to, meeting and conferring in good faith with recognized employee organizations regarding the wages, hours of work, and other terms and conditions of employment. Therefore, OCSD shall: a. Support measures to reform current workers compensation formulas to rely on higher thresholds for compensation or a proportionate exposure formula. b. Support health insurance reform that does not create additional financial burdens on special districts. c. Support measures to ease applicability of the Fair Labor Standards Act(FLSA) on public agencies. d. Oppose any measure imposing compulsory and binding arbitration with respect to public employees. e. Oppose any measure that imposes upon local government mandated employee benefits that are more properly decided at the local bargaining table. I. Oppose efforts reducing local control over public employee disputes and imposing regulations on an outside agency. g. Oppose any measure granting public employees the right to strike. h. Oppose a new mandatory Social Security tax for public employers and public employees. S. Planning:OCSD ensures the long-range planning of capital improvement programs In order to deliver the highest quality facilities:Therefore, OCSD shall: a. Support reform of existing state, regional, and local planning processes only if directly linked to reforms in the current revenue and tax structure of state and local governments. b. Support measures that provide new revenues for growth management and the public facilities necessary to support expected growth. c. Support proposals encouraging regional, sub-regional or countywide cooperation in planning urban development strategies, especially those that provide funding for effective implementation of agreed upon goals. d. Oppose legislation consolidating special districts that fail to address the concerns of cities affected by the proposed consolidation. 6 Originally Adopted December,2005 Revised August,2006 Orange County Sanitation District 2007 Legislative Pledonn e. Oppose measures that prevent or restrict the ability of cities or special districts to participate in the Southern California Association of Governments' (SCAG) sub- regional process. 6. Public Health: Protection of public health is OCSD's core mission. OCSD will work cooperatively with county and state health officers to assure local health protection. Therefore, OCSD shall: a. Support hazard mitigation, emergency response, planning and recovery through direct legislation, policy directives and funding toward floodplain security within the Santa Ana River watershed. b. Support (generally) measures that provide for improved public health through regulation. c. Support the protection of public health through the construction and implementation of advanced wastewater treatment technology. 7. Public Works: OCSD is committed to the achievement of effective and efficient projects that provide wastewater treatment services that benefit its ratepayers. Therefore, OCSD shall: a. Support measures that provide funding and support to publicly owned treatment works and sewerage collection systems. b. Support legislation that allows public agencies to procure goods and services in manners similar to private industry, thereby reducing overall costs of delivery. c. Support legislation that improves the Utility Underground Service Alert Program in order to improve coordination, identification, minimize damage, minimize environmental risks and minimize cost exposure to publicly owned facilities when contractors are performing sub-surface work. d. Support a comprehensive response to the State's electricity and natural gas shortages that provide a stable energy supply, respects the ability of municipalities to provide power, recognizes that infrastructure (i.e. emergency and standby generators) exists that could be employed temporarily during weak periods with minimal air quality impact and protects ratepayers (including cities and special districts) against dramatic rate increases and statewide power outages. e. Support legislation that allows OCSD to utilize the Best Value Design/Build option for the construction of public works projects. 8. Revenue and Taxation: Track pending legislation to ensure OCSD remains in compliance with the government code as it pertains to wastewater system user fees and property tax revenues and the investment of public funds. Therefore, OCSD shall: a. Support measures leading to a greater financial independence from the state and would result in greater stability and predictability in local government budgeting. b. Oppose measures that impose mandated costs for which there is no guarantee of local reimbursement or offsetting benefits. 7 Originally Adopted December,2005 Revised August,2006 Orange County Sanitation District 2007 Legislative Platform c. Oppose legislation that shifts tax revenues away from local governments without the adequate provision of a constitutionally guaranteed backfill to offset the lost revenues of those local governments. d. Oppose measures that allow state retention of existing local revenue sources, including the special district share of property tax, sales tax, vehicle license fees and rate payer fees. e. Oppose the use of revenues traditionally used to fund the delivery of municipal services to fund programs for which the state is responsible, particularly the courts, health, and welfare programs. 9. Special Districts: OCSD supports the maintenance of special districts to provide specific services, in response citizen's demands, in a cost effective manner. Therefore, OCSD shall: a. Support outreach to local, regional, and state elected officials to foster a greater understanding regarding the critical relationship between adequate reserves and the successful short-and-long-term operation of water and wastewater agencies. b. Support the work of the Association of California Water Agencies (ACWA), California Association of Sanitation Agencies(CASA), and California Special Districts Association (CSDA) in any future discussions or negotiations pertaining to the legislative and budget issues relative to preserving control of members' reserves. c. Oppose further state regulations that adversely impact special district financing and operations. d. Oppose measures that create or grant powers to sub-regional or regional bodies that would result in an infringement on clearly local concerns. e. Oppose any administrative or legislative efforts to access or transfer any reserve funds held by water and wastewater districts. f. Oppose the imposition of unfunded, mandated programs on local governments. 10.Water Ouality and Supply: OCSD is committed to participating collaboratively in the protection of regional water resources for the benefit of the people we serve. Therefore, OCSD shall: a. Support continued federal and state funding for the Santa Ana River Interceptor Relocation project. b. Support (generally) measures to increase water supply and improve water quality in the region. c. Support measures that would increase funding for water reuse technologies, including support for the Groundwater Replenishment System project by the Orange County Water District and OCSD to create new water supplies through recycling. d. Support U.S. Army Corps of Engineers projects for Orange County regarding watershed and water quality protection and sand replenishment. 8 Originally Adopted December,2005 Revised August,2006 Orange County Sanitation District 2007 Legislative Pladonn e. Support measures that promote and provide for the use of reclaimed water. f. Support'watershed-based"solutions, including cost-shared studies with the US Army Corps of Engineers of water quality impairments that reflect state-of-the-art science. g. Support policy development, funding, and research for addressing urban runoff and beach closures, including funding for studies that identify the sources of bacterial,viral and other contaminants and human pathogens. h. Support measures to evaluate water quality standards, as needed, to ensure the objectives are appropriately protecting the designated use. L Support measures to develop a state-wide consistent policy for total maximum daily load (TMDL) listing and delisting. j. Support State General Fund subventions and Bond revenue to special districts for local and regional efforts that educate the public on urban runoff, which provide for long-term capital improvements (like storm drain diversions and filters), and encourage municipalities to implement Urban Runoff Best Management Practices at the local level. k. Support legislation that would retain any Regional Board fines levied against a permit violator within the Region of the fine. I. Support legislation that provides"amnesty"from administrative civil liability (ACL) fines from Regional Boards for agencies participating in comprehensive watershed studies that will, when complete, address the problem that resulted in the ACL fine. m. Support efforts, including legislation, clarifying Regional Water Quality Control Board requirements that necessitate expedition of funds are unfunded mandates. n. Support measures addressing non-point source pollution in order to protect our ocean water quality and provide funding to mitigate its effects. o. Support measures for alternative energy sources. p. Support efforts to reduce the toxic and non-reusable waste load. q. Support legislation and regulations that promote improved water use efficiency in construction of water efficient buildings and communities. r. Support legislation that promotes improved water use efficiency through state and federal assistance in evaluating and implementing new programs and technologies and increasing public awareness of water use efficiency. s. Support legislation that provides for groundwater management on a local level, with respect to coordination of programs, extraction and production rights, long- term protection and groundwater quality protection. It. Support legislation that provides for the development of the watershed approach, including watershed management plans and watershed based permitting. u. Oppose proposed environmental constraints on government agencies that would result in economic damage to the region while providing only minimal protections. v. Oppose efforts to make all NPDES permits the same. Requirements of other permits may be too onerous or not applicable. OCSD's permit should be tailored to the Orange County region and watershed. 9 Originally Adopted December,2005 Revised August,2006 Orange County Sanitation District 2007 Legislative Pladorm w. Oppose the imposition of statewide/nationwide fees for environmental cleanup that is privately caused or regional in nature (e.g.,when the nexus between those responsible for environmental abuse and those required to pay for cleanup or mitigation is absent). x. Support measures supporting urban runoff studies and urban runoff reduction. y. Support Coastal Water Quality efforts to ensure that clean beach projects remain a top priority for the state, whether through negotiations on upcoming resources bonds, in setting of legislative priorities, implementation of funding programs, and in any other relevant process. 10 Originally Adopted December,2005 Revised August,2006 STEERING COMMITTEE MeedngMe Tosd.aroo-. 1 1 /16/0 6 11/I6/a6 AGENDA REPORT Item Number Item Number _ eb Orange County Sanitation District FROM: Robert P. Ghirelli, D.Env., Acting Assistant General Manager Originator: Michael Gold, Legislative Affairs Liaison SUBJECT: Renewal of State and Federal Legislative Advocate's Contracts for 2007 GENERAL MANAGER'S RECOMMENDATION Authorize a one-year renewal to the agreements for State and Federal Advocacy services from January 1, 2007 through December 31, 2007, in a form approved by General Counsel, as follows: Sacramento Representatives Scott Baugh (currently with Platinum Advisors) $5,000 per month Townsend Public Affairs (TPA) $5,000 per month Federal Representatives Eric Sapirstein and John Freshman $10,000 per month (ENS Resources and Troutman Sanders Public Affairs) SUMMARY Last year, the Steering Committee and Board approved agreements for State and Federal Legislative Advocacy Services, granting the Steering Committee the option to renew all agreements for one additional year, at their discretion. Pending any further action from the Steering Committee, 2007 would be the last year of the "renewal option." Sometime next year, the Steering Committee will have to fully discuss all options for legislative advocacy services and give direction regarding the most appropriate course of action. In 2002, OCSD began a more aggressive approach to legislative advocacy by hiring lobbyists in both Sacramento and Washington, DC. During that time, OCSD's advocates have brought in grant funds, and lobbied on our behalf. Some of the notable accomplishments include over$4.6 million in Federal Grants, advocacy in support of District-sponsored legislation and up-to-date reporting on the changing political landscape. In the coming year, there will be significant, positive changes to the District's legislative program. In October, members of the Steering Committee participated in the first legislative strategic planning session to develop goals and objectives for 2007; and in 2006, the District created a Legislative Affairs Liaison position to have a dedicated,full-time staff person to manage the legislative and grant programs. 11weplV9endo\sleennB Cob-11beW06%1 962 B(b)Nm N Lob bpsl Cminds Renb" lbob Pagel In addition to the goals that were developed In October 2006, the Board has also implemented the following: • Monthly reports by all legislative advocates to staff and the Board of Directors describing activities for the past and future months. All lobbyists have completed the task regularly. • Regular Legislative Affairs Committee meetings with verbal reports from the lobbyists. • Monthly updates to the Steering Committee and Board of Directors. The chart below highlights the cost and benefits of the program to date.While no grants were received in 2006, the amount in benefits continues to exceed the total costs by a factor of four. OCSD Legislative Affairs Cost/Benefit Comparison (Nov. 2002 to Dec. 2006) $5,000.000 . ,54.6 million $4,000,000 .......................................................................................... $3.000.000 .................................................................................................. _. $2,000,000 ............................................................................................ $1.14 million $1,000,000 ............................................... $0 Costs Grants The legislative program, based on direction given by the Steering Committee and Board, continues to evolve. With the recent addition of a full-time Legislative Affairs Liaison, and the ongoing evolution of the program, staff recommends extending the contracts for the final option year allowing the program an additional year to evolve and giving Board members ample time to evaluate the latest changes. In mid-2007, staff will be returning to the Steering Committee and Board to discuss various legislative advocacy options and conduct a thorough discussion regarding the appropriate levels of State and Federal representation for the District. NA,Mgenda4teenng CommtleeTW11 I K28eb)Nov 06 LobbrSI Conl,ac,s Rnb ldcc Page 2 The goals developed in October can be used by the Board and Steering Committee as an evaluation tool in making a more informed decision about legislative advocacy services. PRIOR COMMITTEEIBOARD ACTIONS • OCSD has been contracting for legislative advocacy services with Eric Sapirstein (ENS Resources)since 1998. • In 2002, The Board of Directors authorized contracting with Scott Baugh followed by an authorization to contract with Townsend Public Affairs in 2003. • Also In 2003, the Board increased the retainer paid to a ENS Resources to include the services of John Freshman in seeking Federal appropriations and grants. In December 2005, the Board approved agreements with all legislative advocates for a one-year period (from January 1, 2006 through December 31, 2006) and granted the Steering Committee the option to renew for an additional one-year period. PROJECTICONTRACT COST SUMMARY N/A BUDGETIMPACT ® This item has been budgeted. ❑ This Item has been budgeted, but there are Insufficient funds. ❑ This Item has not been budgeted. ❑ Not applicable(information item) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS N bapNpenCa\Slamng CemmeooIC0811Ip z.elel xw W LOLenal cmireele amewi ax Page 3 STEERING COMMITTEE Meeting Date To So.of Dir. 11/15/06 11/15/06 AGENDA REPORT Item Number Item Humbe e2I gtm Orange County Sanitation District FROM: James D. Ruth, Interim General Manager SUBJECT: REVISING RULES OF PROCEDURES RESOLUTION AND DELEGATION OF AUTHORITY RESOLUTION GENERAL MANAGER'S RECOMMENDATION (1) Adopt Resolution No. OCSD 06-25, Establishing Rules of Procedure for the Conduct of Business of the District;and, Repealing Resolution No. OCSD 04-15; and, (2) Adopt Resolution No. OCSD 06-26, Establishing Policies and Procedures for the Award of Purchase Orders and Contracts; Award of Public Works Project Contracts; Professional Services Contracts; and Delegation of Authority to Implement said Policies and Procedures; and Repealing Resolution No. OCSD 04-08. SUMMARY The two resolutions are intended to implement the recommendations for streamlining Board and Committee functions and the Board's request for changes to election of the Board ChairNice Chair. Proposed changes to the resolutions are shown in underline/strikeout format in the attached documents. PRIOR COMMITTEE/BOARD ACTIONS Resolution No. OCSD 04-08, Delegation of Authority, was adopted in March, 2004. Resolution No. OCSD 04-15, Rules of Procedure,was adopted in May 2004. 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 The proposed changes to the resolutions are in three main areas: • Resolution No. OCSD 06-26 (Delegation of Authority)- Section 7.01 is changed to implement changes In the authority of the standing committees. Standing Committees will now have authority to approve agreements with a value up to $200,000 plus a specified contingency percentage to be managed by the General Manager. • Resolution No. OCSD 06-25 (Rules of Procedure)—Section 1(L) is changed to implement the new Standing Committee structure and membership requirements H WepNOenEa151eennp CommlleaVOC611119.3 B1q PUIm olPmceEure OOF Epc R•.wd MOM Pagel • Resolution No. OCSD 06-25 (Rules of Procedure)—Section 1(G) is changed to amend the procedure for electing the Chair and Vice Chair of the Board of Directors. This issue was not part of the original streamlining recommendations but was raised during the workshop discussion. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS Proposed Resolution No. OCSD 06-25 Proposed Resolution No. OCSD 06-26 nweo�we"days eiemca cac.dnee�wm++�.a ern awn d v edc, Wo ao< eaaee Page 2 RESOLUTION NO. OCSD 06-25 ESTABLISHING RULES OF PROCEDURE FOR THE CONDUCT OF BUSINESS OF THE DISTRICT A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT FIXING AND ESTABLISHING RULES OF PROCEDURE FOR THE CONDUCT OF BUSINESS OF THE DISTRICT AND REPEALING RESOLUTION NO. OCSD 04 2204=15 WHEREAS it is necessary to establish rules of procedure to facilitate the orderly handling of business to come before the Orange County Sanitation District Board of Directors and Standing, Steering, Special and Ad Hoc Committees. NOW THEREFORE, the Board of Directors of the Orange County Sanitation District ('District"), DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Rules of Procedure. That the following rules of procedure be adopted for the conduct of business of the District: A. Regular Meetings. There shall be a regular monthly meeting of the Board of Directors of the District on the fourth Wednesday of every month at 7:00 p.m., in the Administrative Offices of the District, located at 10844 Ellis Avenue, Fountain Valley, California; provided, however, if the fourth Wednesday of the month falls upon a legal holiday, said monthly meeting shall be held on the next day thereafter, at the same time and place, unless the Board adjourns to a different date and time certain. The Board of Directors may adjourn any regular, special or adjourned special meeting to a time and place certain, as specified in the order of adjournment. B. Special Meetings. A special meeting of the Board of Directors may be called in either one of the following ways: (1) By the Chairperson of the Board of Directors; or (2) By the written request of a majority of the Steering Committee delivered to the BaaFd Sesretafy lark of the Board. wsas-TLw:pl11ee6+6:0s10*4 1 The call or notice for special meeting shall be in writing and delivered personally or by mail at least twenty-four (24) hours before the time of such meeting, as specified in the notice. Any notice deposited in the regular mail addressed to a Director at the address he or she has on file with the BeardSesre"e Ierk of the Board postage prepaid, sixty (60) hours in advance of any such meeting as specified in the notice, shall be presumed to have been delivered. The call or notice shall specify the time and place of the special meeting, a description of the business to be transacted, and copies of all pertinent written materials. Such written notice may be dispensed with as to any Director or Alternate Director who, at or prior to the time the meeting convenes, files with the @earl SeeretapyClerk of the Board a written waiver of notice. Such waiver may be given by telegram. Such written notice may also be dispensed with as to any member who is actually present at the meeting at the time it convenes. The clerk of the Board shall diligently attempt to notify each Director personally of the time, place and purpose of said meeting, not less than twenty-four(24) hours before the time of said meeting. The call or notice shall be posted in the administrative offices' public lobby at least twenty-four (24) hours prior to the special meeting. C. Meetings Adioumed by Beard%esretawClerk of the Board. If at any regular, adjourned regular, special, or adjourned special meeting, there is not a quorum of Directors present, the Beard SeeretagClerk of the Board may declare the meeting adjourned to a stated time and place and shall cause written notice of the adjournment to be given in the same manner as for a special meeting, unless such notice is waived as provided for in special meetings. Within twenty-four (24) hours after the time of the adjournment, a copy of the order or notice of adjournment shall be conspicuously posted on or near the door of the place where the meeting was held. D. Notices to News Media. When any local newspaper of general circulation, radio or television station requests, in writing, notices of meetings of the Board of Directors, the Beard a^esre"a Ierk of the Board shall thereafter, until receipt of a notice terminating said request, deliver notices of regular, regular adjourned, and special adjourned meetings to such newspapers, radio or television stations. Delivery shall be made in the same manner as delivery is made to the Directors. E. Conduct of Meetings. (1) Procedural Rules. The procedural rules for debate and action shall be as set forth in Table 1, attached hereto and adopted herein by reference. wsas-TLw:gaiewi6:osriaa 2 Robert's Rules of Order shall not be applicable or govern the procedures for the conduct of District business. (2) Legal Officer. In any case of ambiguity or uncertainty in the interpretation or application of these Rules to any procedure, the presiding officer may direct such question for a ruling to the Board's General Counsel, who shall be the parliamentarian of the Board. (3) Obtaining the Floor and Making Motions. Any member of the Board wishing to speak, or any member of the public wishing to address the Board, must first be recognized by the Chairperson. The Chairperson must recognize any member of the Board who seeks the floor when appropriately entitled to address the Board. Any member of the Board, including the Chairperson, may bring a matter of business properly before the Board by making a motion. Any member, including the Chairperson, except the member making the motion, may second the motion. Once a motion is seconded, it may be opened for discussion and debate, in accordance with the procedures in Subsection (4) below. (4) Rules for Discussion. Debate. and Deliberation by the Board. The procedures for consideration and action on all matters to come before the Board shall be in compliance with the terms of this Section, as follows: (a) Each item on the Agenda will be introduced in a form of a report by either Staff or Counsel. (b) Upon completion of the report, the Chairperson will allow for direct questions regarding the item, by Directors, each in turn, and in the order as selected by the Chairperson. (c) Upon completion of the question period, the Chairperson will entertain a motion and second for consideration by the Board. (d) Discussion among the Directors will follow. Each Director will be recognized to address the Board in the order selected by the Chairperson, with a five (5) minute time limit for each Member wishing to speak on the Agenda item, unless the time limit is waived by the Chairperson. There will be no interruptions of the Director who has been recognized. Attempted interruptions will be declared out-of-order, and the Board Member attempting to interrupt will be asked to remain silent until recognized. wsas-Trw:Pi:#1W1eos/iaoa 3 i i 1 I (a) As an additional courtesy to everyone, repetition of comments will be discouraged in the interest of time, and at the discretion of the Chairperson, can be declared out-of-order. (f) After each Member who wishes to speak has been recognized and completed his/her remarks, a single three (3) minute period of rebuttal will be allowed any Director, unless the time limit is waived by the Chairperson. (g) If it appears to the Chairperson that any Director is pursuing a line of questioning or commentary due to lack of preparation or prior review with the District's Staff, the Director's time will be declared to have been used up, and no further inquiry will be allowed. (h) Upon adoption of a motion on an Agenda item, there will be no further discussion of that item. (5) Decorum in Debate. All Members shall address their remarks to the Chairperson and confine them to the business then pending and subject to discussion before the Board, avoiding personalities and reflections upon anyone's motives. (6) Closing or Limiting Debate. At all times the Board shall endeavor to allow free and open debate among Members of the Board. However, in the discretion of the Chairperson, it may become necessary to close or limit debate, so that action can be taken by the Board. An order by the Chairperson closing or limiting the debate can only be set aside by a majority vote of the Board. F. Quorum. A majority of the Directors shall constitute a quorum of the Board. G. Chairperson and Vice Chairperson of the Board. A Chairperson and Vice Chairperson of the Board shall be elected by a majority vote of Directors at the regular meeting in June of each year, and will assume office July 1 st. The nominations for Chairperson and Vice Chairperson shall be made at the regular Board meeting in May of each year. Any person nominated for Chairperson shall be deemed to be nominated for Vice Chairperson in the event the person is not elected as Chairperson. Thereafter, and-the nominees shall racy prepare a statement setting forth their qualifications for the office soughtef6hair$ersen. The statements shall be mailed to members of the Board of Directors with the Agenda and other meeting material for the June regular meeting. WSBS-TLW:p1*164616:05/10/04 4 The Chairperson and Vice Chairperson shall serve at the pleasure of a majority of the Directors. In the event the office of Chairperson becomes vacant due to resignation or retirement of the incumbent prior to the expiration of the regular term, the Vice Chairperson shall automatically succeed to the office of the Chairperson and shall continue to serve through the remainder of the regular term unless sooner removed by action of a majority of the Directors. In the event the office of Vice Chairperson becomes vacant prior to the expiration of the regular term, nominations and the election of a Director to serve in that capacity shall be conducted at the next regular Board meeting. The person so elected shall serve the balance of the regularly-scheduled term unless sooner removed as a result of action by a majority of the Directors. Bireste , the Chairperson shall not serve more than two consecutive one-year terms for which he/she has been elected to the office of Chairperson. The Vice Chairperson shall not serve more than two consecutive one-year terms for which he/she has been elected to the office of Vice Chairoerson. H. Presiding Officer. The Chairperson of the Board shall preside during meetings of the Directors. In the absence of the Chairperson, the Vice Chairperson shall preside. I. @eard-SesretwVClerk of the Board and Minutes. The Board of Directors shall have a person designated to serve as Eleard Sesreta4yClerk of the Board. The @Gard SesretaryClerk of the Board will be appointed to the position by the General Manager and shall report to the General Manager or a Department Head as designated by the General Manager. The Beard SesretaFyQ erk of the Board will be a regular full time employee, subject to all the rules and policies applicable to all regular full time employees. The Beard SWsliaryClerk of the Board shall attend all meetings of the Board of Directors, unless excused by the Chairperson, and shall prepare an accurate record of each meeting for submission to the Directors and subsequent approval at the following meeting; provided, however, that when an adjourned, special or special adjourned meeting of the Board of Directors immediately precedes a regular meeting, Minutes of said meeting shall be submitted for approval at the next meeting of the Board following said regular meeting. In the preparation of Official Minutes of a meeting of the Board of Directors, the Beard Sesre"glerk of the Board will not record the name of the Director who moves or who seconds the adoption of a motion or Resolution, except the vote of any individual Director shall be recorded upon that Director's request. The Minutes will reflect the votes by name of Director when required by provisions of state law. In the absence of the Beard Sesre"Clerk of the Board, a Secretary Pro Tern shall be appointed to exercise the duties of the BeardSesretapyClerk of the Board. WSBS-TLW:p1:8184616:0610104 5 I J. Regular Business to Come Before the Board of Directors. Insofar as practicable, all items of business to be taken up at a regular meeting of the Board shall be submitted to the Beard Sesretaq/Clerk of the Board, who shall include on the Agenda all such items submitted by Directors, the General Manager and General Counsel, and all formal communications. The Beard Sesreta� Ierk of the Board shall mail to each Director a notice of such regular meetings, together with a proposed Agenda, not later than the Friday immediately preceding such regular meetings. Said Agenda, insofar as possible, shall include copies of Resolutions, except as hereafter provided, and a description of all matters to be considered, together with any pertinent written materials. Agendas shall be posted in a location freely accessible to the public not less than seventy-two (72) hours in advance of the meeting. Resolutions designated as "standard" and adopted by the Board of Directors from time to time, and approved as to forth and content, need not be included with said Agenda; provided, however, that the information completing said standard Resolutions shall be set forth on the Agenda listing, and copies of said standard Resolutions shall be on file with the Beard Seere" lerk of the Board at the meeting time and place. Items of business not known at the time the regular Agenda is mailed as herein provided, may be considered as supplemental Agenda items; provided that all requirements of the Ralph M. Brown Act (California Government Code Sections 54950 et sec.) are satisfied. No business, except with consent of two-thirds of the Directors present (a majority of Directors present for emergency actions), and only if permitted by the Ralph M. Brown Act, not appearing on the regular or supplemental Agendas may be brought before the Board of Directors. The meeting Agenda shall provide for an opportunity for members of the public to address the Board on items on the Agenda and non-Agenda items of public interest. As determined by the Chairperson, speakers may be deferred until the specific Agenda item is taken for discussion, and remarks may be limited to three (3) minutes. Speakers on non-Agenda items may address only items that are within the subject matter jurisdiction of the Board of Directors. Time allotted for such presentations is limited to three (3) minutes or less. Total time allotted for all public input on each non-Agenda item is limited to thirty (30) minutes to one (1) hour, taking into consideration the number of persons filing a request to address the Board. However, time allotments may be waived by a majority vote of the Board. WS&S-TLW:p1:M4616:05/10N4 6 K. Handling of Business and Voting. During the course of a Board meeting, routine matters listed on the Agenda for consideration will be referred to by Agenda Item Number only. Voting on all Resolutions shall be by roll call, except if waived by unanimous voice vote, in which event, the Chairperson may order a unanimous ballot cast in favor of the motion or Resolution under discussion. The name of each Director shall be called only once. On matters of considerable interest or on which there appears to be a controversy, the motion or Resolution shall be read by title or repeated by the Chairperson. The Chairperson shall thereafter call for discussion of the motion or Resolution, at which time any member may discuss the pending matter. Any person other than a Director present at the meeting may speak on the motion if recognized by the Chairperson. Sole discretion as to the extent of discussion outside of the membership of the Board shall rest with the Chairperson. At the close of discussion, the Chairperson may, at the Chairperson's discretion, repeat the motion or Resolution pending, and thereafter, call for a vote. The Beard SesrefaryClerk of the Board shall determine and state whether or not a motion or Resolution is adopted by roll call vote. On all other matters, the Chairperson shall determine the outcome of the voting. L. Committees. (1) Standing Committees. (a) Steering Committee: There shall be a permanent Committee designated as the Steering Committee, comprised of the Chairperson of the Board, the Vice Chairperson of the Board, the immediate past ChaWpersen of the Reard, the Chairperson of each of the Standing Committees, and three at-lame members selected by the Chairperson of the Board. The Vice Chairperson of each of the Hxee-two Standing Committees shall serve as the designated Alternate, in the absence or inability to serve by any Chairperson. The Committee shall also conduct an annual performance evaluation of the General Manager and submit recommendations on his/her compensation to the-Board of Directors. The Committee shall also review the General Manager's evaluation and compensation of the executive management employees, based on established criteria, and executive management's goals and objectives for the following year. wsas-TLw:pi:#18461s:o51mioa 7 i I The Committee shall also be authorized to assign new subjects of significant importance to the District; to the appropriate respective-Standing Committee for study, evaluation and recommendation. The Steering Committee shall meet on the fourth Wednesday of each month at 5:00 p.m. preceding the Board's meeting, or at the call of the Chairperson of the Board of Directors. (b) Finance and Administration Committee. There shall be a permanent Human ReseurcesFinance and Administration Committee to advise the Staff and make recommendations on matters related to the financial, budgeting, administrative and personnel policies and programs of the District. The Committee shall review with the Staff the procedures for development, preparation and format of the annual budget and recommend appropriate change, and counsel the Staff during the budget process to assure the proper interpretation and implementation of the Board's policies and that the desired procedures have been followed. The responsibility for consideration and adoption of the District budget rests with the Board of Directors. The Committee is-�- shall periodically interview and recommend the selection of outside auditors. The Committee shall review the result of the annual audit of the District's accounts with representatives of the outside audit firth, including any comments received recommending improvements. The Committee shall review management's response to these comments and make appropriate recommendations for implementation. Periodically, the Committee shall recommend employment of an outside firm to audit internal control procedures to safeguard the assets of the District. The Committee shall interview and make recommendations on the employment of investment-banking firms, bond counsel, and if necessary or desired, financial advisors to be used in connection with the District's financing programs. The Committee shall periodically coordinate recommendations on personnel audits of the District's operations or segments of the operations on an as-needed basis. The Committee shall make recommendations on personnel policies and procedures, labor negotiations, insurers and coverage, procurement procedures, and such other related activities as may be needed or appropriate. wsss-TMvi:K+e46+6:05/1 o 8 The Chaimerson of the Board of Directors shall appoint a Committee Chairperson and a Committee Vice Chaimerson for the Finance and Administration Committe Human ReseursesFinance and Administration (;eFRFRO#ee shall be a The Committee Chairperson and Committee Vice Chairperson shall serve at the pleasure of the Chairperson of the Board of Directors. The Finance and Administration Committee shall consist of thirteen members, as follows: (1) The Chairperson of the Board of Directors: (2)The Vice Chairperson of the Board of Directors: (3)The Committee Chair of the Finance and Administration Committee: (4)The Committee Vice Chair of the Finance and Administration Committee: and (5) Nine additional Board members appointed by the Chairperson of the Board of Directors. Other than the Board Chairperson and the Board Vice Chairperson, no Director who serves on the Engineering and Operations Committee shall be eligible to serve on the Finance and Administration Committee. The Finance and Administration Committee shall meet on the second Wednesday of each month at 5:00 p.m., or at the call of its Chairperson. (c) Engineering and Operations Committee. There shall be a permanent Committee designated the Engineering and Operation , AFAAl RAPXOPAA Committee. With the goal of compliance with ail public health and environmental laws and regulations, the Engineering and Operations, Committee shall review and submit appropriate recommendations on the matters pertaining to the operation of the District Treatment Works, including such matters as current and projected service/flow needs, level and quality of treatment, conservation, recycling and reuse activities, and air quality issues. The Committee shall also review issues pertaining to the District's NPDES Ocean Outfall Discharge Permit, including annual review of the oontractor(s) performing the ocean monitoring and research programs required as a condition of said permit, and related issues regarding protection of the marine waters off metropolitan Orange WS&S-TLW:pj:#164616:05/10/04 9 County's coastline from impacts resulting from the District's operations and discharge of treated wastewater. The Committee shall also review matters pertaining to contractual arrangements by the District to provide sewerage services to areas outside the District's boundaries or approved spheres of influence. The Committee shall review plans for the future needs of the District, explore alternatives and make recommendations to the Board of Directors. OR selufieas to the RaRRing, Des gn and GGRRtR-1GtiQR Committee. in GaFFyiRg out its responsibilities, the Digesters The Engineering and Operations Committee shall also review and submit appropriate recommendations on matters pertaining to capital projects which address operational idenfified by the OpeFations, including the selection of professional consulting services to assist in studying, planning and designing needed District Treatment Works and support facilities, including computerized systems, in accordance with the Board's established policies and procedures for procuring such services; the Committee shall further review construction projects for said facilities in accordance with applicable public works laws and Board policies. Said oversight shall include the contracts for professional services and public works construction projects and addenda or change orders thereto. In carrying out its responsibilities, the Committee shall receive advance notice and regular status reports on the projects from Staff, and monitor, visit and observe the District Treatment Works' operational functions and major capital construction projects. The Chairperson of the Board of Directors shall appoint a Committee Chairperson and a Committee Vice Chairperson of the Planning, Pesigaaad 6enstwetien-Engineering and Operations Committee, she'! be appointed by-t4e Ghadrpefsen of the Board of DiFOGIOrS. The Committee Chaimerson and Committee Vice Chairperson shall serve at the pleasure of the Chairperson of the Board of Directors. WS&S—TLW:pl.#181G1 S:OW10Po6 10 The Engineering and Operations Committee shall consist of fourteen members, as follows: (1) The Chairperson of the Board of Directors: (2)The Vice Chairperson of the Board of Directors: (3)The Committee Chair of the Engineering & Operations Committee: (4)The Committee Vice Chair of the Engineering and Operations Committee: and (5)Ten (10)additional Board members appointed by the Chairperson of the Board of Directors. Other than the Board Chairperson and the Board Vice Chairoerson, no Director who serves on the Finance and Administration Committee shall be eligible to serve on the Engineering and Operations Committee. The Engineering and Operations Committee shall meet on the first Thursday of each month at 5:00 p.m., or at the call of its Chairperson. the immediate Past r-haiFp8F6GR tG one of the CeFRFRi#ees. (2) Special and Ad Hoc Committees. In addition to the Standing Committees, the Chairperson of the Board of Directors, or the Chairperson of a Standing Committee, or a majority of the Directors, may appoint, from time to time, Special or Ad Hoc Committees to study and report on specific matters. Such Committees shall be temporary in nature, and their assignments shall pertain to a current, specific issue. Upon completion of the assigned task, the Ad Hoc or Special Committee will be dissolved. The Chairperson and Vice Chairperson of Special and Ad Hoc Committees shall be appointed by the Chairperson of the appointing authority. Each Special ander Ad Hoc Committees shall meet at the call of its Chairperson. M. Motion to Refer to a Standing Committee. Any Director at a Board meeting may move to have a policy or any other activity affecting the District, or any one of the member Agencies, referred to a Standing Committee for study and report. This motion shall be a privileged motion, and when duly seconded, discussion thereof shall W S&S-TL W:p{AH W16.W1 OM4 11 be limited to Directors only. Said motion shall receive an affirmative vote of a majority of the Directors for adoption. Section 2: Procedure for Consideration of Demands for Corrective Action. A. Requirement of Written Demand. Prior to any person commencing a judicial action for injunction or mandamus to declare any action taken by the Board void because of failure to observe Brown Act requirements, such person must first serve upon the I3eard Seers" Jerk of the Board a written demand describing the alleged violation and demanding corrective action. Such demand must be served upon the @card SesretagClerk of the Board within thirty (30) days of the complained of action. Failure to serve any such demand within this thirty (30) day period shall result in the loss of any right to challenge any action to have been taken in violation of Sections 54953, 54954.2, or 54956 of the California Government Code. B. Consideration of Corrective Action. Upon receipt of such a demand, consideration of the demand shall immediately be placed on the Agenda for the next meeting of the Board of Directors. If the demand is received less than seventy- two (72) hours prior to the time set for the next meeting, the Board may determine that the notice constitutes the initiation of litigation, and that the need to take action on the threatened litigation arose subsequent to the posting of the Agenda, and may consider it at that meeting pursuant to Section 1(J) above. A description of any item so placed on the Agenda shall include both consideration of the demand, and the possibility of corrective action by the Board. In considering such demands, the Board shall first determine, by motion, whether corrective action should be taken. If no motion to take corrective action is carried, the Dowd SesretaryCle. k of the Board shall inform the demanding party in writing of the Board's decision not to cure or correct the challenged action. C. Imolementina Corrective Action. If a motion to take corrective action passes, the Chairperson may entertain a motion implementing corrective action. Any motion implementing corrective action shall address the concerns raised in the consideration of corrective action. The motion implementing corrective action may include a motion to rescind prior action taken, as appropriate. Passage of a motion to rescind invalidates prior action only as of the time of the passage of the motion, and not from the date of the initial action. A motion implementing corrective action resulting from a written demand is out-of-order if the action complained of(a)was in connection with the sale or issuance of notes, bonds, or other evidences of indebtedness, or any contract, agreement, or incident thereto; or (b) gave rise to a contractual obligation upon which a party has, in good faith, detrimentally relied. In any event, the Board shall notify the party making the demand in writing of its decision to take corrective action, and shall describe any corrective action taken. This notice shall be given to the demanding party WS&S-TLW:pj:9184616:05110/06 12 as soon as possible after the meeting, but in no event more than thirty (30) days after receipt of the demand. Section 3: Resolution No. OCSD 94-2304=15 is hereby repealed. Section 4: This Resolution shall become effective-wpen-adeptienJanuary 1. 2007. PASSED AND ADOPTED at a regular meeting held May 26, 209 November 15. 2006. Chair ATTEST: @ear9 Seere"Qerk of the Board WSSS-TLW:pj:M164616:05H0M4 13 TABLE 1 BOARD PROCEDURES AND ORGANIZATION SUMMARY OF MOTIONS A. PRIVILEGED MOTIONS Kind of Second Motion Require Debatabi Amendab Vote Purpose d e to Required Adjourn Yes No No Majority To end the meeting To Take a Yes No No Majority Recess To interrupt a meeting for a short time or to provide an Raise a No No No None intermission Question of Privilege To obtain action immediately in an emergency B. MAIN MOTION AND RELATED SUBSIDIARY MOTIONS Kind of Second Vote Motion Require Debatabi Amendab Required Purpose d e le Main Yes Yes Yes Majority To introduce Motion new business Yes Yes Yes Majority Amend To modify or Main alter Motion Yes Yes Yes Majority a motion Substitute To replace the Motion Yes No No Majority main motion entirely Previous Question To close debate on the main or Yes Yes Yes Majority amended wsas-TLw:pI:#184816:oa1pM4 14 motion Continue to immediately a Certain Yes No No Majority Time To defer action To Table To discontinue Yes No No Majority consideration until brought back by Take a vote of the Motion Board from the Yes No Yes Majority Table To bring before the group a motion Yes Yes Yes Majority previously Limit or tabled Extend Limits of Debate No No No None To limit or extend Refer to a limits of debate Committee Yes Yes No Majority. Must be by a To place Withdraw Director who business Motion voted for the in hands of a prevailing Committee side on the Reconsider original To withdraw a motion motion before it is voted on To secure a new vote on a motion previously voted u on W 685-TLW:pI:a164616:05/10104 15 C. INCIDENTAL RULES NON41ANKING Kind of Second vote Motion Required Debatable Amendabl Required Purpose e Request to Yes No No Two-Thirds To facilitate Suspend business the ordinarily Rules contrary to the rules of the organizatio n Yes No No Majority Override To have Order of Board the majority Chair rule No No No None on the order Point of Order To enforce the rules of the organizatio n wsss-TLw:q:aieasi6:osnaw 16 O�JNjV SAN17'q T/0 2 � � c 9 -9�r FpT/N� E RESOLUTION NO. OCSD 94-0806-26 ESTABLISHING POLICIES AND PROCEDURES FOR: THE AWARD OF PURCHASE ORDERS AND CONTRACTS; PUBLIC WORKS PROJECT CONTRACTS: PROFESSIONAL SERVICES CONTRACTS: AND DELEGATION OF AUTHORITY TO IMPLEMENT SAID POLICIES AND PROCEDURES A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT (DISTRICT OR OCSD) ESTABLISHING POLICIES AND PROCEDURES FOR THE AWARD OF PURCHASE ORDERS AND CONTRACTS; AWARD OF PUBLIC WORKS PROJECT CONTRACTS; AWARD OF PROFESSIONAL SERVICES CONTRACTS; AND DELEGATION OF AUTHORITY TO IMPLEMENT SAID POLICIES AND PROCEDURES; AND REPEALING RESOLUTION NO. OCSD 89 2304 08 TABLE OF CONTENTS ARTICLE I: RECITAL OF FINDINGS...................................................Page 1 Section 1.01: Findings: Declaration of Intent. ARTICLE If: TERMS AND DEFINITIONS..............................................Page 2 Section 2.01: Terms and Definitions ARTICLE III: DELEGATION OF AUTHORITY—GENERAL..................Page 5 Section 3.01: Purpose and Scope. Section 3.02: Authorizing General Manager to Establish Rules and Guidelines. Section 3.03: Procedure for Delegation of Authority ➢ Approval Levels a. Co-signatures b. Procedural Requirements c. Special Consideration for Extraordinary Projects I Events Section 3.04: Purchasing System Adoption Section 3.05: Purchasing Division Delegated Authority Section 3.06: Procurement Card Program Section 3.07: Requisitions Section 3.08: Cooperative Procurement Section 3.09: Purchases: Emergency Section 3.10: Purchases: Sole Sources; Standardized Prices, Specialized Services, and Sole Sources Section 3.11: Purchase Orders Section 3.12: Purchases: Encumbrances of Funds Section 3.13: Blanket Purchase Orders Section 3.14: Surplus Supplies, Materials, and Equipment. Section 3.15: Sale of Real Property. Section 3.16: Recordkeeping ARTICLE IV: OPERATIONAL SUPPLIES, MATERIALS.....................Page 12 EQUIPMENT& SERVICES, INCLUDING PROFESSIONAL SERVICE CONSULTANTS (EXCLUDING PUBLIC WORKS CONTRACTS OR PROFESSIONAL DESIGN SERVICE AGREEMENTS) Section 4.01: Purpose and Scope. Section 4.02: Purchases: Bidding Requirements. Section 4.03: Bidding Procedure: Purchases Greater than $50,000. Section 4.04: Purchases between $50,000 and $100,000. Section 4.05: Bidding Procedure: Purchases Less Than $50,000. Section 4.06: Bidding Procedure: Purchases Less Than $5,000. Section 4.07: Inspection and Testing. Section 4.08: Purchases: Negotiated Contracts. Section 4.09: Request for Proposal Procedure. ARTICLE V: PROFESSIONAL DESIGN SERVICE AGREEMENTS...Page 18 Section 5.01: Purpose and Scope. Section 5.02: Retention of Professional Design Consultants. Section 5.03: Facilities Engineering Project. Section 5.04: Facilities Engineering Project: Approval of Plans and Specifications. Section 5.05: Facilities Engineering Project: Annual Budget Approval. Section 5.06: Facilities Engineering Project: Selection of Consultants— Procedure. Section 5.07: Major Capital Project: Approval of Plans and Specifications. Section 5.08: Major Capital Project: Scope of Work a. Proposals—Notice Requesting b. Staff Screening Committee c. Proposal—Contents d. Review of Proposals by Staff Screening Committee a. Procurement& Negotiation of Agreement f. Continuation of Services g. Specialized Services h. Agreement for Services I. Conflict of Interest Section 5:09: Major Capital Project: Selection of Consultants— Procedure. ARTICLE VI : PUBLIC WORKS CONSTRUCTION CONTRACTS........Page 26 Section 6.01: Purpose and Scope. a. Notice Inviting Bids b. Bidder's Security c. Bid Opening Procedure d. Rejection of Bids e. Tie Bids I. No Bids g. One Bid h. Emergencies I. Surety Bonds j. Cost Records Section 6.02: Public Works: Bidding Required. Section 6.03: Bidding Procedure: Public Works Construction Greater than $35,000. Section 6.04 Public Works Projects a. Close-out Agreements iii b. Notice of Completion c. Time Extension to Construction Contract Agreement ARTICLE VII: AWARD AUTHORIZATION............................................Page 29 Section 7.01 GensWtantsA reements. Amendments & Change Orders: A. Asimaq,-Agreements&-Rurehases B. Amendments & Change Orders C. Change Orders to Existing Agreements Section 7.02 Facilities Engineering Projects: A. Task Orders B. Amendments Section 7.03 Sew ees A.AFn8Rdmer+ts Seetiea-704 Public Works Projects: A.P*nwy-AgreeFRea6> A.Ghangs QFdeFs GA. Close-Out Agreements 9-8. Notice of Completion €C. Time Extension to Rublte WeOisConstruction Contract Agreement ARTICLE Vlll: TRAINING, MEETINGS, AND RELATED TRAVEL EXPENDITURES ...........................................................Page 35 Section 7.01: Purpose and Scope. Section 7.02: General. Section 7.03: Policies and Procedures. ARTICLE IX: MISCELLANEOUS.........................................................Page 37 Section 8.01: Noncompliance. Section 8.02: Severability. Section 8.03: Effective Date. Section 8.04: Repeal of Prior Resolution. iv ARTICLE I RECITAL OF FINDINGS Section 1.01: Findings: Declaration of Intent. A. California Government Code Section 54202 requires that every local agency shall adopt policies and procedures, including bidding regulations governing purchases of supplies, services, materials and equipment, and that purchases of supplies, services, materials and equipment by the local agency shall be in accordance with said duly adopted policies. B. Califomia Govemment Code Section 54204 requires that if the local agency is other than a city, county, or city and county, policies provided for in Section 54202 of said Code shall be adopted by means of a written rule or regulation, copies of which shall be available for public distribution. C. In order to establish efficient procedures for the purchase of supplies, services, materials, and equipment, and the letting of public works contracts at the best possible cost commensurate with quality and delivery needs, together with other relevant factors, to exercise positive financial control over purchases, and to clearly define authority for the purchasing function, and to establish bidding procedures, a purchasing system for OCSD beyond what is required by said Sections of the Government Code is desirable and in the best public interest. D. An effective, comprehensive organization needs an administrative structure with support procedures that are logical, efficient,well documented, are understood by the organization's employees and members of the public, and that will enable timely and responsive administrative acquisition of supplies, services, materials, and equipment. The organization should also appropriately delegate authority to those persons and units having responsibility for these activities. E. The Board of Directors has determined that a delegation of authority structure provides for better training of employees which will result in improved efficiency and effectiveness of OCSD's operations. Resolution No.OCSD 0408 1 of 35 ARTICLE II TERMS AND DEFINITIONS Section 2.01: Terms and Definitions. A. 'Amendment or Change Order"shall mean written agreements entered into and between the Professional Service Provider or Contractor and OCSD, properly executed, covering alterations, changes, additions, or deletions to the Contract which are necessary for the proper completion of the work. B. "Capital Facilities"shall mean those public works owned by OCSD that are currently in existence. C. "Capital Facilities Operational Projects"shall mean the routine, recurring, and usual work for the preservation or protection of any public works, as well as any minor repainting, landscape, maintenance, or work performed to keep, operate, and maintain OCSD's water, power and wastewater disposal systems. This work shall include modification or repair, or the replacement of parts, equipment, and facilities. D. "Capital Improvements"shall mean those public works that are to be newly-erected or constructed by OCSD in the future. E. "Change Order"shall mean written agreements entered into and between the Contractor and OCSD, for Public Works Contracts, properly executed, covering alterations, changes, additions, or deletions to the Contract, which are necessary for the proper completion of the work. F. "Competitive Bidding"shall mean the process and procedure whereby OCSD, in accordance with California Public Contract Code Section 20783, prepares Plans and Specifications for the construction of public works; publishes a Notice Inviting Bids, and at a fixed time opens all bids received; and subsequently awards a Construction Contract to the lowest responsive and responsible bidder. G. Design Agreement"shall mean a contract between OCSD and a Professional Design Consultant who is licensed, certified, or registered by the State of California to perform professional services. For OCSD purposes, these individuals shall be known as "Professional Design Consultants". H. 'Facility Engineering Project"shall mean a miscellaneous capital improvement or facility modification, replacement, or repair project, related to plant safety, reliability and efficiency enhancements where professional consulting services are estimated to be in an amount not to exceed $100,000 (inclusive of amendments)for each project. I. "Force Account"shall mean work that is performed solely by OCSD employees which has a cost value, including labor, overhead, parts, and supplies, in an amount not to exceed $5,000 for each Project, except as allowed in Resolution No.OCSD 04-08 2 of 35 Subparagraphs (a)and (b) below. It does not mean work performed for OCSD by persons or an entity under contract to OCSD, even when said work may be ordered by OCSD as being outside or beyond the original contract scope of work. OCSD employees may perform work on contracts, without limitation on amount only,for one of the following reasons: (a) It is an emergency and performing the work with OCSD forces is more expedient; or (b)The Board of Directors has rejected all bids and by a four-fifths vote declared that the work can be performed more economically by day labor. A written cost effectiveness analysis must be placed in the contract file. This force account provision shall not apply to sewerage maintenance or repair work. KJ. "Major Capital Projects"shall mean the construction, repair, modification, or rehabilitation of OCSD's Capital Facilities, including treatment plants, trunk sewers, pump stations, ocean outfall, administrative and support facilities, and other facilities related to OCSD operations,where the cost of Professional Design and Consultant Services are estimated to be in an amount in excess of$100,000 for any project. These projects may require Selection Committee or Board approvals. K6. "Professional Design Consultant"shall mean an individual or firm providing engineering, architectural, environmental, land surveying, construction management, and other similar services which are those professional services associated with development and design for construction, alteration, or repair of public works, as well as incidental services that members of these professions, and those in their employ, may logically orjusfifiably perform, including studies, investigations, surveys, evaluations, consultations, planning, inspections, shop drawing reviews, sample recommendations, cost estimates, inspections, preparation of operation and maintenance manuals, and other related services, all of which must be incidental to OCSD awarding a contract for the construction of public works. MIL. "Professional Design Service Agreement"shall mean a Contract between OCSD and a Professional Design Consultant to provide services to OCSD for professional engineering, architecture,environmental, land surveying, and similar services as a non-employee of OCSD. ABM. "Professional Service Consultant" shall mean an individual or firm (other than a "Professional Design Consultant"), providing professional services to OCSD, such as, but not limited to, accounting and financial services, information technology,general research, evaluation of systems design related to wastewater treatment systems, legislative evaluation and advocacy, human resources consultation and advocacy, and miscellaneous scientific research and consultation. Resolution No.OCSD 00-08 3 of 35 QN. 'Professional Service Consultant Agreement'shall mean a contract between OCSD and a Professional Consultant to provide services to OCSD as a non-employee of the District. PO. Public Works"shall mean all buildings, structures,facilities, improvements, or works that are owned or operated by OCSD for the benefit of the public and which were or are being constructed, altered, demolished, or repaired under contract and paid for, in whole or in part, out of public funds. QP. Public Works Contract shall mean an Agreement between OCSD and another party for the erection, construction, alteration, repair, or improvement of any public works of any kind. Public Works projects estimated more than $35,000 must adhere to the provisions of the California Public Contract Code. Q. "Standing Committees" shall mean the Steering Committee. Engineering and Operations (E&O) Committee. and Finance and Administration Committee. R. "Task Orders" shall mean miscellaneous technical support authorized under a current contract. The speck task must have a defined budget and be completed within the total budget of the existing prime contract. Resolution No.OCSD 04-06 4 of 35 ARTICLE III DELEGATION OF AUTHORITY - GENERAL Section 3.01: Purpose and Scope. In an effort to remove barriers that prevent OCSD employees from performing their jobs at the highest level of efficiency, a delegation of authority structure will appropriately provide staff with information on its increased responsibility and ownership, hence, it will contribute to the improved efficiency and effectiveness of OCSD. Section 3.02: Authorizina General Manager to Establish Rules and Guidelines. The levels of authorization to award purchase orders and contracts to acquire services, including professional services, supplies, materials, and public works project contracts, are as more particularly specified in Article VII herein. The General Manager of OCSD is hereby authorized to establish rules and guidelines to implement Board policies and to delegate to Staff, signature authority to initiate the procurement process, as specified in Articles IV through VII herein. Section 3.03: A. Procedure for Delegation of Authority. These procedures establish the framework and boundaries within which a delegate can operate, and also provide Management with a mechanism to evaluate implementation and hold the delegate accountable for his/her actions. Upon delegation of authority by the General Manager, each Department shall be authorized to further delegate to respective employees within the Department. The delegation shall be effective upon the Department Head setting forth, in writing, the name of the delegated employee, the job position, and specific level of delegated authority as Staff Level A, B, or C, respectively(as set forth in Section 7.01A below), and filing it with the Contracts/Purchasing Manager. The General Manager shall establish further procedures to implement delegated authority into the organization. To commence the procurement process for acquisition of operational supplies, services, materials, and equipment, public works contracts governed by state law and professional and design service agreements, signature authority is hereby established asset forth in Section 7.01A below. The functional authority level listed describes the highest level of signature approval needed. Intermediate management approval between the initiator/requestor and listed approval level must also be obtained. The General Manager may delegate authority for all purposes under this Resolution to a Department Head to act in the General Manager's absence. Resoluton No.OOSD 04.08 5or35 B. Co-Signatures. In addition to the signature of the Delegated Authority: 1. To ensure that all policies and procedures governing purchase orders and contracts are followed, all contracts and purchase orders will be signed by the Contracts/Purchasing Manager, or his designee upon approval of the delegated authority speed in Section 7.01A. 2. All purchases for computer hardware, software, copiers, faxes, and communication equipment will be pre-approved by the Information Technology Director, or his designee. C. Procedural Requirements. All policies and procedures adopted by the Board of Directors or promulgated by the General Manager governing the procurement of supplies, materials, equipment or services, will apply, and shall be complied with. Budgeted funds must be available prior to the acquisition of goods or services. Upon the identification of goods or services needed that are not originally budgeted,either a budget transfer request forth must be completed demonstrating that adequate funds are available to cover the acquisition, or the Board of Directors must authorize a budget amendment, at which time, the item being acquired would fall into the budgeted category. D. Special Consideration for Extraordinary Protects/ Events. The Board of Directors, at its discretion, may temporarily increase the General Managers purchasing approval and amendment!change order authority due to circumstances it finds critical to the operation. In addition, the Board may also allow the replenishment of the General Manager's amendment/change order authority, once exhausted, back to its original level, if necessary. Section 3.04: Purchasing System Adoption. The procedures and authority set forth in this Resolution are intended to operate in concert with and supplemental to the delegation of authority granted by the goveming Board of Directors in the adoption of this Resolution. Full compliance with the provisions of all Articles in this Resolution is required. Section 3.05: Purchasing Division Delegated Authority. There is hereby vested in the Purchasing Division (hereinafter referred to as "Purchasing'), under the general supervision and direction of the Director of Finance,the authority for the purchase of supplies, services, materials, and equipment; letting of public works contracts; and the establishment of rules, procedures, and administrative policies relative thereto. The Director of Finance may delegate or assign any or all of the following duties to the Contracts/ Purchasing Manager: A. To purchase or contract for supplies, services, materials, and equipment required by any Department or Division, in accordance with purchasing procedures prescribed by this Resolution; such administrative regulations as Purchasing Re"ficin No.OCSD 0408 6 of 35 shall adopt for the internal management and operation of Purchasing; and such other rules and regulations as shall be adopted by the Board of Directors. B. To negotiate and recommend execution of contracts for the purchase of supplies, services, materials, and equipment;for construction of public works projects; and for the disposition of surplus property and by-products of the sewage treatment process. C. To submit to General Counsel for review or approval, as necessary, contracts, purchase orders, and other related documents. The Board Secretary shall be the designated Custodian of all original executed copies of contracts, purchase orders, and other related documents which are approved by the Board of Directors. The Purchasing Department shall be the designated Custodian of all other executed contracts. D. To discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases and sales. E. To prepare rules, regulations, procedures, and administrative policies, and revisions thereto, governing the purchase of supplies, services, materials, and equipment;for the letting of public works construction contracts in accordance with the provisions of state law; and disposition of surplus property and by-products of the sewage treatment process. F. To prepare rules, regulations, procedures, and administrative policies, and revisions thereto, governing the warehousing of inventories. G. To keep informed of current developments in the field of purchasing, including but not limited to prices, market conditions, and new products. H. To prescribe and maintain such forms as are reasonably necessary for the implementation of this Resolution and other rules and regulations of OCSD. L To review and recommend specifications to establish minimum standards for all purchases. J. To supervise the inspection of all supplies, services, materials, and equipment purchases to insure conformance with specifications. K. To provide for the transfer of surplus or unused supplies and equipment between Departments, as needed. L. To have custodianship and control of all inventories and surplus property. M. To maintain a bidders' list, vendors' catalog file, and records needed for the efficient operation of the Purchasing Division. N. To review, approve, and maintain active insurance documents for all OCSD procurements. Resolution No.OCSD 04-08 7 of 35 O. To revise all records to reflect the sale, transfer, or reorganization of a supplier's business, or a change in the supplier's name for doing business, so long as all other terns and conditions of the original agreement remain the same. In such event of an assignment of the purchase order or contract by the supplier, OCSD shall not be bound until it has given its consent in writing,which consent shall not be unreasonably withheld. An amendment to the original agreement shall be prepared authorizing and consenting to the assignment and shall be executed by the General Manager, or his designee on OCSD's behalf. P. To undertake such other and future duties as, in the Director of Finance's discretion, are incidental and necessary to the conduct of the Division. Section 3.06. Procurement Card Program. OCSD has established a Procurement Card ("Procard") Program allowing specifically authorized employees to purchase goods and services with a total dollar value less than $1,000, thereby eliminating the purchase requisition, purchase order, invoice, and check requirements for these purchases. Approval for use of a Procard must first be obtained from OCSD's Procard Administrator, with the concurrence of the Contracts/Purchasing Manager and appropriate Department Head. All employees authorized by the Finance Department to use a Procurement Card shall do so only in accordance with OCSD's Procurement Card Policies and Procedures. Section 3.07: Requisitions. All OCSD employees who need or require supplies, services, materials, or equipment to carry out the defined duties of their positions, shall submit requisitions, in advance,for purchases or warehouse requisitions to Purchasing, in accordance with the adopted rules, regulations, procedures, and policies of the Purchasing Division. Usage of OCSD's procurement cards shall be exempt from this requirement. Section 3.08: Cooperative Procurement. A. OCSD,through Purchasing, may participate in or sponsor, conduct,and/or administer a Cooperative Procurement Agreement for the acquisition of procured items or services with any other public agency purchasing unit,or public agency alliance, in accordance with an agreement between OCSD and the other public agency. B. OCSD, through Purchasing, may sell to, acquire from, or use any property (other than real property) belonging to another public agency, including the cooperative use of supplies or services. C. Purchasing may, at its discretion, procure from the County of Orange Cooperative Purchasing Program, the State of California Multiple Award Schedules Program and the Department of General Services Program, the California Association of Public Purchasing Officers Program, the Western States Contracting Alliance, the County of Los Angeles' Cooperative or Piggyback Programs, and U.S. Communities Alliance, without obtaining bids and following procedures set forth below, if Resolution No.OCSD 0408 8 of 35 the Contracts/ Purchasing Manager determines that goods or services procured through said Programs are cost-favorable to OCSD. Section 3.09: Purchases: Emergency. Whenever an emergency arises which is, or may be, a threat to the continued required operations of the wastewater treatment plants and facilities owned by OCSD, or when purchases are immediately necessary for the preservation of life or property, or to avoid a threat to the public health or safety, the Division may purchase supplies, services, materials, or equipment required for immediate use, in an amount greater than One Hundred Thousand ($100,000) Dollars without observing the procedures set forth in this Resolution. The General Manager or his designee, shall advise the OCSD Chair and /or Vice Chair, as appropriate, of the action taken, and such action shall be ratified by the Board of Directors at its next regular meeting. Section 3.10: Purchases: Standardized Prices, Specialized Services. and Sole Sources. A. The Purchasing Division may make purchases of supplies, materials, equipment or services without observing the bidding and Board approval procedures of Section 4.13 below when: 1. Items to be purchased have a demonstrated uniformity in price; or 2. An emergency arises which is, or may cause, a threat to the continued required operations of Reclamation Plant 1 or Treatment Plant 2; or 3. Purchases are immediately necessary for the preservation of life or property, or to avoid a threat to the public health or safety; or 4. The Provider of goods or services is determined to be uniquely qualified to provide specialized goods or perform specialized services. 5. It is determined that there is a sole source Provider that has goods and services available immediately that might not otherwise be available at such time purchasing procedures could be completed, and Staff determines such items are critical to OCSD's operations; a. For sole sources greater than$100,000, the General Manager, or his designee, shall advise the OCSD Chair and/or Vice Chair, as appropriate, of the action to be taken,and such action shall be ratified by the Board of Directors at its next regular meeting. b. Sole sources between $50,000 and $100,000 shall be approved by the General Manager and reported to the Board of Directors quarterly. c. All sole sources shall require pre-approval from the requesting Department Head, the Contracts/Purchasing Manager and the Director of Finance. Reeolo8on No.OCSO 04-08 9 of 35 Section 3.11: Purchase Orders. Purchases of all supplies, services, materials, or equipment shall be made by purchase order through use of a requisition, and may also require a formal written contract when determined necessary or appropriate by the Contracts/ Purchasing Manager. To ensure that all policies and procedures governing purchase orders and contracts are followed, all contracts or purchase orders will be executed by the Contracts / Purchasing Manager, or as delegated by the Contracts/Purchasing Manager. Employees requisitioning supplies and equipment shall be responsible that requisitions are in conformity with the spirit and intent of this Resolution and that no purchase has been broken into smaller units to evade any requirement of this Resolution. In accordance with OCSD's Records Retention Policy, Purchasing shall retain in its files one (1)copy of all purchase orders issued during the two(2) years preceding, on which copy of the purchase order there shall be a list of bidders and prices bid for the materials or equipment purchased, or if no bids or quotations were taken or received, a full statement as to the reason therefor. Section 3.12: Purchases: Encumbrances of Funds. Except in cases of emergency, no purchase order shall be issued for any supplies, services, materials, or equipment, unless there exists a sufficient budget item against which said purchase is to be charged, and which is not pledged towards any other specific purchase. Section 3.13: Blanket Purchase Orders. The Purchasing Division may issue annual blanket purchase orders for recurring purchases of miscellaneous supplies that: A. Are not carried in stock in OCSD's warehouse because of economic considerations; B. Are stock items that have been designated as appropriate sole source acquisitions; C. Have been competitively bid because Purchasing determines it is in the best interests of OCSD to issue a blanket order for inventory items; or D. Are for miscellaneous supplies, services, materials and equipment where such purchase may be procured from a single vendor during the budget year, without observing the procedures prescribed in Section 4.03 below when, in the Purchasing Division's discretion, it is determined that such blanket purchase orders are at a cost favorable to OCSD and will result in a more efficient procurement of such items. Blanket purchase orders shall be in conformity with the spirit and intent of this Resolution. The Purchasing Division shall, at the beginning of each budget year,file a list of such purchase orders and the estimated annual amount with the Director of Finance. Resolution No.OCSD OFOB 10 of 35 Section 3.14: Surplus Supplies, Materials, and Equipment. All Departments and/or Divisions shall submit to Purchasing, at such times and in such form as Purchasing shall prescribe, reports showing all supplies, materials, and/ or equipment which are no longer used or which have become obsolete or wom out. Purchasing shall have the authority, as deemed appropriate by the Contracts I Purchasing Manager, to sell, exchange for, or trade in on new supplies, materials, and equipment, or dispose, as deemed appropriate, of all supplies, materials, and equipment which cannot be used by any other Department or Division, or which have become unsuitable for OCSD use. Section 3.15: Sale of Real Property. No negotiations concerning the sale of real property of OCSD may be made without prior review from the Contracts/Purchasing Manager and the General Counsel. No real property of OCSD may be sold without prior approval of the Board of Directors Section 3.16: Recordkeeping. A record of all sales of surplus property and by-products shall also be maintained by Purchasing upon or in which is maintained,the record of the bids received for the property or by-products sold, or if bids were not taken or received, a full explanation thereof. Such records shall be maintained for two (2)years after the sale. ReaWuuon No.OOSD 00-0e 11 of 35 ARTICLE IV OPERATIONAL SUPPLIES, MATERIALS, EQUIPMENT & SERVICES, INCLUDING PROFESSIONAL SERVICE CONSULTANTS (EXCLUDING PUBLIC WORKS CONTRACTS OR PROFESSIONAL DESIGN SERVICE AGREEMENTS) Section 4.01: Purpose and Scope. In order to establish efficient procedures for the purchase of supplies, materials, equipment and services, including Professional Service Consultants, at the best possible cost, commensurate with quality and delivery needs and other relevant factors; to exercise positive financial control over purchases; to clearly define authority for the purchasing function; and to establish bidding procedures pursuant to Section 54202 of the Government Code of the State of California, a purchasing system is deemed necessary. This Article does not apply to Professional Design Service Agreements and Public Works Contracts,which are defined and governed by Articles V and VI below. Section 4.02: Purchases: Bidding Requirements. Except as hereinafter provided, purchasing of supplies, materials, equipment or services, including Professional Service Consultants, shall be by bid procedures as set forth in this Article IV, when the purchase is estimated to have a value greater than Five Thousand ($5,000) Dollars; the supplies or services may be obtained from more than one vendor; are not standardized as to price; and no emergency exists. Section 4.03: Bidding Procedure: Purchases Greater Than $50,000. A. Award to Lowest Bidder. Except as otherwise provided in this Article IV, purchases of supplies, materials, equipment or services, including Professional Service Consultants, of an estimated value greater than $50,000 shall be by written contract or purchase order with the lowest responsive and responsible bidder (unless a Request for Proposal solicitation instrument is utilized), pursuant to the procedures prescribed herein. B. Award Approval. Purchases of supplies, materials, equipment or services, including Professional Service Consultants,that are identified and have appropriate not to exceed contractual pre-approvals, as outlined in each Fiscal Year's annual budget, to include capital equipment, shall be bid and awarded directly by the Contracts/ Purchasing Manager, or as delegated by the Contracts/Purchasing Manager in accordance with the procedures in this Section 4.03. Supplies, materials, equipment or services, including Professional Service Consultants, not budgeted, or which exceed the Board or pre-approved amount, or subsequent increases to the contract above the original amount identified and approved in the budget year the contract was awarded (both pre-approved or Board approved), or Resolution No.OCSD D4-08 12 of 35 which affect policy recommendations or ratifications, or are sole source contracts exceeding $100,000. and all applicable public works contracts, shall require Board of Directors' approval prior to issuance or award of a purchase order or contract, except as provided in Section 7.01(B). C. Notice Inviting Bids. A Notice Inviting Bids shall be published and include a general description of the articles or services to be purchased or sold, shall state where bid forms and specifications may be secured, and the time and place for opening bids. 1. Published Notice. The Notice Inviting Bids shall set a date for the opening of bids. The publication or posting of the Notice shall be at least ten (10)days before the date of opening the bids. Notice may be published in a newspaper of general circulation, printed and published within OCSD's jurisdiction; or by electronic bulletin board procedures designed to reach the industry or market of supply; or through OCSD's Internet Web Site. 2. Bidders List. Purchasing may also solicit sealed bids, or receive bids electronically, from all qualified, responsible prospective suppliers whose names are on the Bidders List maintained by OCSD, or who have requested their names to be added thereto. 3. Bulletin Boards. Purchasing may also advertise pending purchases or sales by a notice posted on a public bulletin board in the Purchasing Division Office, and by electronic bulletin board, as deemed appropriate by the Contract's Purchasing Manager. D. Bidder's Security. When deemed necessary by Purchasing, a bidders security may be prescribed in the contract specifications or in the Notice Inviting Bids. Purchasing, or those assigned by Purchasing, shall maintain said bidders security. Bidders shall be entitled to the return of a bid security upon the full execution of an awarded contractor issuance of a purchase order by the successful bidder. A successful bidder shall forfeit its bid security upon refusal or failure to execute the contract within the prescribed time after the Notice of Award of Contract has been delivered to the bidder, unless OCSD is responsible for a delay in the prescribed time. The Contracts/Purchasing Manager may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsive, responsible bidder. If the Contracts/Purchasing Manager awards the contract to the next lowest bidder, an amount of the lowest bidders security equal to the difference between the low bid and the awarded bid shall be forfeited to OCSD, and the surplus, if any, shall be returned to the lowest bidder. E. Bid Opening Procedure. Sealed or electronically received bids shall be submitted to the Contracts/Purchasing Manager and /or Secretary of the Board of Directors, and shall be identified as a bid on the envelope or the electronic bulletin board. Bids shall be opened in pubic by the Contracts/Purchasing Manager, or his designated representative, at the time and place stated in the public notices. A tabulation of all bids received shall be available for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening. In cases wherein the Request for Proposal ("RFP") instrument is utilized, all Resolution No.ODSD 04-08 13 of 35 RFP's will be opened, and only the name of the Proposer shall be read aloud at the time and place set forth therein. F. Refection of Bids. At his discretion,the Contracts/Purchasing Manager may reject any and all bids presented and re-advertise for bids. If all bids are rejected, the Contracts/Purchasing Manager may declare that the materials or supplies may be acquired at a lower cost by negotiation in the open market and authorize the purchase in that manner. G. Tie Bids. If two or more bids received are for the same total amount or unit price (with quality and service being equal), and If the public interest will not be best served by a delay of re-advertising for bids, the Board of Directors or Contracts/ Purchasing Manager may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the award. H. Performance Bonds. Purchasing shall have the authority to require a Faithful Performance Bond, a Labor and Materials Bond, and/or a Warranty Bond, before entering into a contract in an amount as it shall find reasonably necessary to protect the best interests of OCSD. If the Purchasing Division requires any of these Bonds, the form and amount of the Bond shall be described in the Notice Inviting Bids and in the Contract Specifications. Section 4.04: Purchases between $50,000 and $100,000. Purchasing may award a contract to purchase supplies, materials, equipment or services, including Professional Service Consultants, in an amount greater than $50,000 and less than $100,000,without obtaining bids and following the procedures all as more particularly set forth in Section 4.03 above when the Contracts/Purchasing Manager determines that: A. By purchasing immediately, it can avoid an imminent price increase or realize a substantial price discount that is available on a short-term basis only; or B. It can obtain supplies, materials, equipment or services, including Professional Service Consultants, immediately that might not otherwise be available at such time as purchasing procedures could be completed; or C. Said contract for supplies, materials, equipment or services, including Professional Service Consultants, includes Board of Directors' approval for multiple one(1)year renewal periods at the Districts option. All such contracts shall not exceed the prescribed limit of renewal periods as defined by the Board of Directors and shall require the Contracts/ Purchasing Manager's approval; or D. The supplies, materials, equipment or services, including Professional Service Consultants, are only available from a sole source; or E. Whenever an emergency arises which is, or may cause, a threat to the continued required operations of Reclamation Plant 1 or Treatment Plant 2, or when purchases are immediately necessary for the preservation of life or property, or to avoid a threat to the public health or safety. Rewlution No.OCSD 04-08 14 of 35 Section 4.05: Bidding Procedure: Purchases Less Than $50,000. Purchases of supplies, materials, equipment or services, including Professional Service Consultants, of an estimated value in the amount of$50,000 or less on which bidding is not required by state law, may be made by Purchasing in the open market without observing the same procedures as prescribed by Section 4.03 above. The procedures to be used for these purchases are as follows: A. Minimum Number of Bids. Open market purchase shall, whenever possible, be based on at least three (3) bids and shall be awarded to the lowest responsive and responsible bidder, and shall be by written contract or purchase order. B. Solicitation of Bids. Bids shall be solicited by written requests to prospective vendors or purchasers and/or by telephone,facsimile transmission, electronic bulletin board, and /or by public notice posted on a public bulletin board in the Purchasing Division Offices. C. Receipt of Bids. Bids shall be submitted to Purchasing,which shall keep a public record of all open market orders and bids for a period of two (2)years after the submission of bids or the placing of orders. D. Exceptions. Purchasing may purchase supplies, materials, equipment or services, including Professional Service Consultants, without observing the procedures prescribed in Subparagraphs A, B, and C above, if supplies, materials, equipment or services, including Professional Consultant Services are only available from a sole source. All such purchases shall be approved by the Director of Finance, the requesting Department Head, and the Contracts/ Purchasing Manager. Section 4.06: Biddina Procedure: Purchases Less Than $5,000. Purchasing may purchase supplies, materials, equipment or services, inducting Professional Service Consultants of a value in the amount of$5,000 or less per purchase order, without observing the procedures prescribed in Section 4.05 when, in the Contracts/ Purchasing Manager's discretion, it is determined that observing such procedures would not result in a lower overall cost to OCSD. Record of such decision shall be fully stated in the purchase order file as to the reason therefor. Section 4.07: Inspection and Testina. The supplies, materials, equipment or services delivered, including performance or deliverables resulting from a Professional Service Contract, shall be inspected to determine their conformance with the specifications set forth in the purchase order or contract. Purchasing shall have the authority to request professional services, or to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. Rwolu0on No.OCSO 0" 15 of 35 Section 4.08: Purchases: Negotiated Contracts. Notwithstanding other provisions of this Resolution, the Board of Directors may, when it appears in the best interests of OCSD, authorize the Staff to negotiate and award a contract for the purchase of supplies, materials, equipment or services, including Professional Service Consultants,without observing the procedures prescribed in Sections 4.03, 4.04 and 4.05 above. A. When such authorization has been granted for the purchase of supplies, materials, equipment or services, including Professional Service Consultants, of an estimated value in the amount of$100,000 or greater, the Staff shall obtain the concurrence of OCSD Chair and/or Vice Chair, as appropriate, prior to awarding such purchase. B. Whenever any contract for supplies, materials,equipment or services, including Professional Service Consultants, has been entered into between OCSD and a person or entity, and Purchasing determines that it is in the best interest of OCSD to continue said contract with such person or entity, Purchasing may, in its discretion, negotiate an extension of such contract without observing the bidding procedures prescribed in Sections 4.03 and 4.05 above; provided, the original contract contains provisions for subsequent extension periods; has been approved and awarded by the Board of Directors; and/or has prior contractual pre-approval, as provided in Section 4.03. Section 4.09: Request for Proposal Procedure. As deemed appropriate by the Contracts/ Purchasing Manager, a Request for Proposal ("RFP") solicitation process may be employed in lieu of the competitive bidding process. The RFP process may be used for goods or services that prove difficult to quantify or describe. Therefore, Proposers are offered the opportunity to offer solutions. Award shall be based upon criteria which provide the "best value" received by OCSD, which is not solely determined by price. A. All Purchases—All Levels. Except as otherwise stated below, the RFP process shall follow bidding thresholds and procedures as outlined in Sections 4.03 and 4.05 above. B. Purchasing shall solely prescribe the Request for Proposal (RFP) procedure and award criteria. OCSD's RFP procedure shall be on file and available with the Contracts/Purchasing Manager or designee. C. The Contract/Purchasing Manager shall solely prescribe and approve all RFP Evaluations team members. D. In order to avoid actual or perceived conflicts of interest, members of the Board of Directors are prohibited from participating in the RFP Evaluation process, except in those instances where the potential provider shall directly serve and report to the Board or its respective Committee(s)or when approved to do so by the Board Chair. E. OCSD maintains a Conflict of Interest Code pursuant to California Government Code Sections 87100 et seq.,which governs the activities and performance Rwoluthn No.OCSD 04-08 16 of 35 of duties of its Directors, officers, employees, or agents in the conduct of project work for OCSD. F. No Director, officer, employee, or agent of a Professional Service Consultant under contract with OCSD, shall solicit or accept rebates, kickbacks, favors, or other unlawful consideration from any individual or firm on behalf of any firm that may be potentially selected as a qualified firm to provide professional consulting services to OCSD. Acceptance of food and refreshments of a nominal value on infrequent occasions, and acceptance of gratuities or gifts shall not be deemed a violation of this provision, provided that W said items exceed $340, or the amount as fixed by California Government Code Section 89503, or California Code of Regulations Title 2, Section 18940.1, in a calendar year, the Director, officer, employee, or agent may be disqualified from participating in the decision pursuant to Article III of OCSD's Conflict of Interest Code;and provided, further, that any Director, officer, employee, or agent, as a designated employee under OCSD's Conflict of Interest Code, shall report any amount of gifts on his/her annual Statement of Economic Interests, as required by said Code. G. Any fine seeking selection under these procedures that violates OCSD's Conflict of Interest Code shall be automatically disqualified. H. Any fine solicited to violate the Code must report said solicitation to the Board of Directors, or it will be automatically disqualified. Rwolullon No.OCSD 00-08 17 of 35 ARTICLE V PROFESSIONAL DESIGN SERVICE AGREEMENTS Section 5.01: Purpose and Scope. OCSD, in the interest of uniformity, fairness, and cost effectiveness desires to establish policies and procedures for the selection and procurement of professional engineering,architectural,environmental, land surveying, and construction management services. Section 5.02: Retention of Professional Design Service Consultants. This Resolution establishes a procedure to be followed in the selection and retention of Professional Design Consultants in the areas of engineering, architecture, environmental, land surveying, and construction management services. Professional Design Consultants are those individuals or firms providing engineering, architectural, environmental, or land surveying services which are those professional services associated with research, development, design and construction, alteration, or repair of real property, as well as incidental services that members of these professions and those in their employ may logically or justifiably perform, including studies, investigations, surveys, evaluations, consultations, planning, programming, conceptual designs, plans and specifications, cost estimates, inspections, shop drawing reviews, sample recommendations, preparation of operation and maintenance manuals, and other related services, all of which must be incidental to OCSD awarding a contract for Construction or Public Works. Services for product testing are excluded. It is recognized that no two individuals or forms have equal skills, training, or experience, and that the qualities of such firms vary. Accordingly, Professional Design Consultants shall be selected based upon OCSD's discretion and opinion as to which particular Consultant is best qualified to perform the work (hereinafter referred to as the "project") in question. For purposes of this Resolution, "firth" shall mean any individual, firth, partnership, corporation, association, or other legal entity permitted by law to practice the profession of architecture, engineering, environmental services, land surveying, or construction project management. Evaluation and selection of a consultant firm will include, but not be limited to, the following: A. The firm shall be of high ethical and professional standing, its members being of good moral character, and it shall be prepared to submit references from persons of known repute. B. The principal and other responsible members of the firm must be registered in the State of Califomia, as required by law. Re olutbn No.OCSD 04-08 18 of 35 C. A principal member of the firm's staff must have the minimum appropriate experience in responsible charge of work of the type involved in the project. The appropriate experience required will solely be determined by OCSD staff. D. At least two (2) additional members of the firm's staff must have appropriate experience in responsible charge in the field or fields required by the project. The appropriate experience required will solely be determined by OCSD staff. E. The firm shall be capable of performing the work within the prescribed time limitations considering the current and planned workloads of the firm. F. If all other factors are equal, preference shall be given to a locally based firm when more than one firm is being considered. G. If the project is funded, either in whole or in part, by state or federal funds that require, as a condition of establishing or maintaining eligibility for state or federal funds, that fines working on the project maintain an affirmative action employment program, then the fine selected for the project must certify to having such a program. OCSD also recognizes that the scope of services and the qualifications of consultants can differ significantly between major capital facilities projects and facilities engineering projects. The criteria set forth in Paragraphs C and D above may be waived by OCSD for Facilities Engineering Projects. The procedures set forth in this Resolution shall govern the retention of Professional Design Consultants. Section 5.03: Facilities Engineering Proiect: "Facilities Engineering Project" is defined as a miscellaneous capital improvement or facility modification, replacement, or repair project, related to plant safety, reliability or efficiency enhancements where professional design consulting services are estimated to be in an amount not to exceed $100,000 ($75,000 for original Task Order and $25,000 for any additional amendments)for each project. Section 5.04: Facilities Engineering Project: Annual Budget Approval. Upon approval by the Board of Directors of an annual budget, OCSD's Director of Engineering or OCSD's Contracts/ Purchasing Manager, or their designees, shall be authorized to solicit contract proposals from professional engineering, architectural, environmental, land surveying, and construction management firms to perform the required services for the approved Facilities Engineering Projects, as defined and prescribed herein. Section 5.05: Facilities Engineering Project: Selection of Consultants — Procedure. A. OCSD's Staff shall compile a master pre-approved list of not less than 5, nor more than 10 firms having the required expertise to perform the required Resolution No.OCSD 04-M 19 of 35 professional service for a Facilities Engineering Project. The master list of firms will be selected based upon a solicitation, review of qualifications, and Board approval of the agreements including up to two annual optional renewals. Upon selection and approval, the Professional Design Consultant shall execute the District's Professional Design Service Agreement. The original term of the agreement shall be for one(1)year. Thereafter, the Director of Engineering (DOE)shall be authorized to recommend to the General Manager, an extension of the qualified Professional Design Service Agreement for up to two (2) additional one (1)year renewal periods,for a total of three(3)years, with each of the Parties designated on the approved master list. The Professional Design Service Agreement for each Party on the master list shall be forwarded to the Purchasing Office. The Engineering Department Staff shall prepare the appropriate requisition documentation to insure future payment to the consultant. B. As a need for an individual specific Facilities Engineering Project arises, OCSD will implement the Agreement by issuing a Task Order Identifying the specific project by name and number, and include the approved scope of work required of the consultant for the project. There is a maximum annual fiscal year contract limitation of$200.000 for each Professional Design Service Agreement under the provisions of this Section 5.05. C. The DOE shall first obtain at least two (2) price proposals from consultants before the Task Order is awarded to a consultant. This requirement may be waived at the discretion of the DOE, where a determination is made that the subject work is unique such that only one (1) consultant is available to perform the work, or where significant time constraints or emergency conditions dictate that one (1) consultant be solicited for a price proposal. The DOE, or his designee, shall review the proposals specifically addressing cost and ability to meet OCSD schedule requirements. Based on the evaluations,the DOE is authorized to award the original Task Order. D. Once the Professional Design Consultant is selected for the award of a Facilities Engineering Project and the Task Order is executed by OCSD, the DOE shall issue the Notice to Proceed. Section 5.06: Facilities Engineering Project: Approval of Plans and Specifications. The Board of Directors delegates to the Director of Engineering (DOE), as a Professional Registered Engineer, the authority to approve the design, plans, and specifications for the construction of a new or modified OCSD facility that is deemed a Facilities Engineering Project, as defined in Section 5.03 above. Section 5.07: Malor Capital Protect: Scope of Work. A. For every project approved by the General Manager, the RBG CeramilteeE &O Committees, or the Board of Directors, and for which outside professional consulting services are required, OCSD Staff shall develop a comprehensive scope of work. B. The scope of work shall define the extent of the services and the time required. Resolution No.OCSD 04-05 20 of 35 Section 5.08: Major Capital Project: Selection of Professional Design Consultants— Procedure. For the employment of any Professional Design Consultant or Professional Service Consultant for major capital projects budgeted and approved by the Board of Directors, the following procedures shall apply: A. Proposals—Notice Reguesting. Staff shall prepare a Request for Proposal ("RFP") or a Request for Qualifications ("RFQ"), for the scope of work which shall include a request for the firm's qualifications, personnel capability, demonstration of firm's capabilities, identification of personnel assigned to the project, estimate of number of hours for each aspect of the project, fee proposals, and conflict of interest disclaimer. The Request for Qualifications' process may be used, at Staffs discretion, to narrow the field of fines submitting proposals on the project. OCSD shall maintain a comprehensive list of professional consultants' demonstrated competence. Optionally, notice may be given by publication in professional journals or publications of general circulation. B. Staff Screening Committee. A Screening Committee of at least two (2) Staff Members, as chosen by the Department Director, shall review all submitted proposals and prepare a recommendation for selection of the best qualified consultant to the PDC-E &O Committee as described in Paragraph D below. In order to avoid actual or perceived conflicts of interest, members of the Board of Directors are prohibited from participating in the RFQ Evaluation process except in those instances where the potential provider shall directly serve and report to the Board or its respective Committee(s)or when approved to do so by the Board Chair. C. Proposals—Contents. Proposals submitted shall: 1. Acknowledge the scope of the project and extent of the services required. 2. Include a description of the firm's qualifications for performing the proposed work. 3. In the case of a proposal for construction management services, each fine shall provide evidence that its personnel that will carry out on-site responsibilities have expertise and experience in construction project design review and evaluation, construction mobilization and supervision, bid evaluation, project scheduling, cost-benefit analysis, claims review and negotiation, and general management and administration of a construction project. 4. Include past performance records of the firm. 5. Demonstrate the firm's capabilities to complete the work within the time allotted. naeowuon N..oCSD W 08 21 a135 fi 6. Identify the specific key personnel to be assigned to the project. 7. Provide an estimate of the number of hours involved in each aspect of the scope of work for such personnel. 8. Be accompanied by a sealed fee proposal estimate which shall not be opened until the firm is selected as being qualified. Thereafter, it shall be the basis for procurement negotiations. The form of the fee proposal shall be as described in Subsections E2 and E3 below. 9. Contain a conflict of interest disclaimer. 10. Provide any other information required to properly evaluate the frm's qualifications and familiarity with the types of problems applicable to the project. D. Review of Proposals by Staff Screening Committee 1. The Staff Screening Committee shall review, and evaluate proposals, negotiate fees, and determine and make recommendations to the ADGE & O Committee as to which firm is deemed to be fully qualified to provide services sought by OCSD based on the firm's demonstrated competence and qualifications. 2. The Staff Screening Committee, upon making a determination of the fully qualified firms, shall rank the firms considered, based upon the qualifications and in order of preference. E. Procurement and Negotiation of Agreement. To determine the firm to be selected and the compensation for the services sought, the following procedures will be strictly adhered to: 1. The Staff Screening Committee will, at its discretion, invite the firth that is considered to be the best qualified to appear before the Staff Screening Committee. 2. The proposal for fees associated with the services, as submitted by the selected fine, shall be presented in sufficient detail to enable the Staff Screening Committee to adequately ascertain the level of effort associated with the scope of work and to determine whether the firm has thoroughly identified the efforts associated with the services and thoroughly understands the work required. 3. The basis of the fee shall be cost plus a fixed fee with a maximum amount; per diem rate(s)with a maximum amount; or a lump sum (fixed)fee. 4. If it is the decision of the Staff Screening Committee to use methods for compensation other than the lump sum or cost plus a fixed fee with a maximum, or the per diem rates with a maximum,justifications for this decision shall be made by the Staff Screening Committee in its recommendation to the RDGE &O Committee and the Board of Directors. Resolution No.OCSD 04-08 22 of 35 5. The Staff Screening Committee shall review the compensation requested by the fine which shall be compared with the maximum fee as previously established. 6. The final negotiated fee, as recommended to the PDGE & O Committee and Board of Directors, shall be certified by the Staff Screening Committee as reasonable for the services requested and not resulting in excessive profits for the firm. 7. If agreement is not reached, the negotiations should be terminated and similar interviews should then follow with the next ranked firm. 8. All such negotiations shall be on a strictly confidential basis, and in no case shall the compensation discussed with one firm be discussed with another. F. Continuation of Services. 1. In some instances when a qualified firm has satisfactorily completed one phase in the development of a project, Staff shall, based on an outline and recommendation of the scope of additional work, obtain Board approval to negotiate with the same firth for additional services related to other phases of the project. 2. Continuation of services may arise when a firm has completed a feasibility report or a preliminary engineering report, and the services for said work are satisfactory to the Board and the procedure of examining other firms for subsequent phases is not deemed necessary or cost effective. 3. In the event that satisfactory negotiations for price cannot be concluded under these circumstances, negotiations should be terminated and the provisions set forth hereinabove for selection of a firm would apply. G. Specialized Services. 1. In the event that specialized professional services are required, where it is determined that only one (1)qualified firth can best perform the services for a specific project for professional fees estimated to be in an amount greater than $50,000,the Staff Screening Committee will negotiate a Professional Design Service Agreement or Professional Consultant Service Agreement, make recommendations to the RBGE & O or other Standing Committee, and upon action by such Committee, present it to the Board of Directors for approval. 2. The basis of selection of the specialized firm or individual under Subparagraph G(1) above, along with the negotiated fee, shall be presented to the Board of Directors for consideration. H. Agreement for Services. 1. Upon approval by the Board of Directors of a negotiated agreement for professional services, a contract shall be executed in a form approved by the General Counsel. Radolbn No.OCSD 04-M 23 of 35 2. The contract shall include, but not be limited, to the following terms: (i) A statement on the scope of the project. (ii) The basis and individual elements of the fees. (iii) The basis for payment to the firm. (iv) The time limits in which the services must be performed. (v) Provisions for fee adjustments, should there be changes in the scope of work. (vi) If it is determined by the Standing Committee that OCSD may be caused to incur a penalty or liability, or suffer a loss because of the failure of the firm to perform the work within specified time limits, the contract shall include a clause setting forth penalties for such nonperformance or delayed performance, in amounts to be determined by the Standing Committee. (vii) For projects exceeding $50,000 in fees or in other cases, as determined by OCSD, errors and omissions insurance in an amount recommended by the General Counsel or OCSD's Risk Manager (based upon engineering data from the Department Director) shall be required, unless the Standing Committee or Board of Directors, as the case may be, waives said insurance. (viii) For projects that involve engineering studies where a consultant is asked to provide a report not related or leading directly to a design project, the General Manager(based upon engineering data from the Department Director), in his discretion, may waive the requirement for the consultant to provide errors and omissions/professional liability insurance. 1. Conflict of Interest. t. OCSD maintains a Conflict of Interest Code pursuant to California Government Code Sections 87100 at seq., which governs the activities and performance of duties of its Directors, officers, employees, or agents in the Conduct of project work for OCSD. Resolution No.OCSD 04-08 24of 35 2. No Director, officer, employee, or agent of a Professional Design Consultant under contract with OCSD shall solicit or accept rebates, kickbacks, favors, or other unlawful consideration from any individual or fine on behalf of any firm that may be potentially selected as a qualified firm to provide professional consulting services to OCSD. Acceptance of food and refreshments of a nominal value on infrequent occasions, and acceptance of gratuities or gifts shall not be deemed a violation of this provision, provided that if said items exceed $340, or the amount as fixed by California Government Code Section 89503, or California Code of Regulations Title 2, Section 18940.1, in a calendar year, the Director, officer, employee, or agent may be disqualified from participating in the decision pursuant to Article III of OCSD's Conflict of Interest Code; and provided further, that any Director, officer, employee, or agent, as a designated employee under OCSD's Conflict of Interest Code, shall report any amount of gifts on his/her annual Statement of Economic Interests, as required by said Code. 3. Any firm seeking selection under these procedures that violates OCSD's Conflict of Interest Cade shall be automatically disqualified. 4. Any firm solicited to violate the code must report said solicitation to the Board of Directors or it will be automatically disqualified. Section 5.09: Malor Capital Protect: Approval of Plans and Specifications. The procedure and authority for the approval of the design plans and specifications for construction of new or modified OCSD major capital projects are as follows: A. For any project, if the engineer's estimate for the construction contract, as provided by the Director of Engineering or OCSD's consulting design engineer, is greater than the approved construction budget for the project, the Director of Engineering shall submit the project to the PDO E& O Committee for recommendation, and based thereon, to the Board of Directors for approval of the Plans and Specifications. B. For any project, if the engineer's estimate for the construction contract, as provided by the Director of Engineering or OCSD's consulting design engineer is equal to or less than the approved construction budget for the project, the Director of Engineering shall submit the plans and specifications to the Board of Directors for approval, and thereafter may advertise for bids, and upon receipt, the lowest responsive bid of a responsible bidder will be submitted to the Board of Directors for approval, as provided for in Article VI. Resolution No.OCSD 04-DB 250135 ARTICLE A PUBLIC WORKS CONSTRUCTION CONTRACTS Section 6.01 : Purpose and Scope. Public works contracts are herein defined as contracts with duly licensed contractors in the State of California for the furnishing of labor, materials, equipment, and permits, as deemed necessary for the erection, construction, alteration, repair, or improvement of wastewater collection, treatment and disposal facilities, and any other public building, structure, or improvement necessary to the operation of OCSD, in an amount greater than $35,000, as per California Public Contract Code Sections 20783 at seq. Section 6.02: Public Works: Bidding Required. When the expenditure required for a public works construction project exceeds $35,000. it shall be contracted for and let to the lowest responsive and responsible bidder, in accordance with the provisions of California Public Contract Code Section 20783. Section 6.03 : Bidding Procedure: Public Works Construction Greater Than $35,000. Procedures for soliciting bids and awarding contracts for public works projects for more than $35,000 shall be in accordance with applicable provisions of California Public Contract Code Section 20783. A. Notice Inviting Bids. The Notice Inviting Bids shall specifically describe the work to be performed, shall state where Bid Forms, Specifications, General and Special Provisions may be secured, and the time and place for receiving and opening sealed bids. 1. Published Notice. Pursuant to California Public Contract Code Section 20783, the Notice Inviting Bids shall set a date for the opening of bids. The first publication or posting of the Notice shall be at least ten (10)calendar days before the date for the opening of bids. The Notice shall be published at least two (2) times, not less than five (5)days apart, in a newspaper of general circulation, printed and published within the jurisdictional boundaries of the District. 2. Bidders' List. The District may also solicit sealed bids from all qualified, responsible, prospective suppliers whose names are on a Bidders' List that may be maintained by OCSD. B. Bidder's Security. When deemed necessary by the Purchasing Division, a bidder's security may be prescribed in the Contract Specifications and in the public Notice Inviting Bids. Bidders shall be entitled to the return of the bid security upon full execution by the successful bidder of an awarded contract by OCSD. A successful bidder may forfeit its bid security upon refusal or failure to execute the Resolution No.OCSD 04-08 26 of 35 Contract within the prescribed time after the Notice of Award of Contract has been delivered to the bidder, unless OCSD is responsible for the delay in the prescribed time. The Board of Directors may, on the refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsive, responsible bidder. If the Board of Directors awards the Contract to the next lowest bidder, an amount of the lowest bidders security equal to the difference in an amount between the low bid and the awarded bid shall be forfeited to OCSD, and the surplus, If any, shall be returned to the lowest bidder. C. Bid Opening Procedure. Sealed bids shall be submitted to the Director of Engineering, or Contracts/Purchasing Manager, or their designee, or the Secretary of the Board of Directors, as identified in the bid document, and shall be identified as a bid on the envelope. Bids shall be opened in public, at the time and place stated in the public notice. A tabulation of all bids received shall be available for public inspection during regular business hours for a period of not less than thirty(30) calendar days after the bid opening. D. Bid Equal or Less Than Construction Budget. For any project, upon receipt of bids for construction, if the lowest responsive bid of a responsible bidder is equal to or less than the approved construction budget for the project, the bid will be submitted to the Board of Directors. The Board of Directors may award a contract. E. Bid Greater Than Construction Budget. For any project, upon receipt of bids for construction, if the lowest responsive bid of a responsible bidder is greater than the approved construction budget for the project, Staff shall present the bid and a recommendation to the RBGE 8 O Committee for review and recommendation to the Board of Directors. F. Reiection of Bids. In its discretion, the Board of Directors may reject any and all bids presented and re-advertise for bids. If, after the opening of bids, all bids are rejected, the Board of Directors, on a Resolution adopted by a four-fifths (4/5ths)vote, may declare that the work can be performed more economically by force account, if in accordance with applicable provisions of California Public Contract Code, or the materials or supplies furnished at a lower price in the open market and may have the work done in a manner stated in the Resolution in order to take advantage of this lower cost. G. Tie Bids. If two (2) or more bids received are for the same total amount or unit price (with quality and service being equal),and if the public interest will not be best served by a delay or re-advertising for bids, the Board of Directors may accept the one it chooses, or accept the lowest bid made by negotiation with the tie bidders at the time of the award. H. One Bid. When only one bid is received in response to a Notice Inviting Bids (NIB), the bid may be considered and accepted if a determination is made that(a)the specifications used in the NIB were not unduly restrictive, (b)the required competition was solicited and it could have been reasonably assumed that more than one bid would have been submitted, (c)the price is reasonable, (d)the bid is otherwise in accordance with the NIB, and (a)all processes and procedures have been followed in accordance with the Public Contract Code. ResoluUon No.OCSD 04-08 27 of 35 I. No Bids. If no bids are received, OCSD may have the work done by force account, may re-advertise for bids pursuant to the procedures herein, or may ` select a contractor by negotiation. J. Emergencies. Whenever an emergency arises which is, or may be, a threat to the continued operation of the wastewater facilities, support facilities,and I or administrative facilities operated by OCSD, a Contract for the repair or replacement of the public facility may be ordered by the General Manager without complying with the provisions of this Resolution or the California Public Contract Code. This authority is hereby delegated to the General Manager, or his designee, by the Board of Directors pursuant to the authority of California Public Contract Code Section 22050. In such event, the General Manager shall advise the OCSD Chair and/or Vice Chair, as appropriate, of the action taken, and such action shall be confirmed by a four-fifths (4/5ths)vote of the Board of Directors at its next regular meeting. K. Surety Bonds. The Purchasing Division shall require a Faithful Performance Bond and a Labor and Materials Bond. A Warranty Bond maybe required before entering into a Contract in an amount up to one hundred (100%) percent of the amount of the Contract, as it shall find reasonably necessary to protect the best interests of OCSD. The forth and amount of the Bond shall be described in the Notice Inviting Bids, or in the Contract Specifications. Original Bonds for public works construction contracts shall be kept in the official OCSD file which is maintained by the Board Secretary. L. Cost Records. Cost records shall be kept in the manner provided in Sections 4000 to 4007 inclusive, of the California Government Code. Section 6.03 : Bidding Procedure: Public Works Construction Greater Than $35,000. Section 6.04: Public Works Proiects A. Close-Out Agreement. The approval and execution of an original Close-Out Agreement shall be made by the General Manager. B. Notice of Completion. The approval and execution of an original Notice of Completion shall be made in accordance with the following delegations of authority: Authorized Authority Authorized Action Director of Engineering Authority to approve and execute all or Purchasino Notices of Completion. C. Time Extension to Public Works Contract. Resolution No.OCSD 04-08 28 of 35 The approval and execution of an original Time Extension to Construction Contract shall be made in accordance with the following delegations of authority Authorized Authority Authorized Action General Manager Authority to approve and execute construction contract fime extensions. Resolu8on No.OCSD 04-08 29 of 35 ARTICLE VII AWARD AUTHORIZATION 7.01 AGREEMENTS, ONTRACTS, AMENDMENTS & CHANGE ORDERS A. Agreements & Centsasts B. Amendments & Change Orders C. Amendments & Change Orders to Existing Agreements 7.02 FACILITIES ENGINEERING PROJECTS A. Task Orders B. Amendments 7.03PUBLIC WORKS PRO 'ECTS A. Close Out Agreements B. Natine of Completion C. Time €xtensien to Constrdstien Contrast AgreemPRt Pwoluuon No.OCSD 04-08 30 of 35 Section 7.01: ALL AGREEMENTS S, AMENDMENTS & CHANGE ORDERS This Section 7.01 applies to all Agreements. Amendments and Change Orders entered into by the District. A. Agreementsand-6enkasts The award and execution of an Agreement_, PurGhase QFdeF OF GGAtraGt, by the on behalf of OCSD, shall be made in accordance with the following delegations of authority: "Delegated Authorized Authori Authorized Action Staff Level C Authorization to approve budgeted purchases less than or equal to$2,000. Staff Level B Authorization to approve budgeted purchases from$2,001 through$5,000. Staff Level A Authorization to approve budgeted purchases from$5,001 through $10,000. Division Manager Authorization to approve budgeted purchases from $10,001 through $25,000. Department Director Authorization to approve budgeted purchases from $25,001 through $50,000. General Manager Authorization to review and approve budgeted purchases between $50,001 and an amount not to exceed $100,000. Items to be reported to the Board of Directors on a quarterly basis. Assistant General Manager Authorization to review and approve budgeted purchases between $50,001 and an amount not to exceed $100,000. Items to be reported to the Board of Directors on a quarterly basis. Standing Committees Authorization to approve purchases over $100,000 to $200.000, with the exception of pre-approved purchases pursuant to Section 4.03 and emergency items pursuant to Section 4.4 herein. In approving purchase agreements, each standing committee shall set a maximum aggregate contingency amount for all amendment and ResoWEon No.OCSD 0408 31 of 35 change orders. The maximum anaregale contingency amount shall be no higher than fifty percent(50%)of the Agreement amount. Board of Directors Authorization to approve purchases over $200,000,with the exception of pre- approved purchases pursuant to Section 4.03 and emergency Items pursuant to Section 4.4 herein. B. Amendments and Change Orders: The award and execution fer of amendments and change orders to aAgreements, on behalf of OCSD shall be made in accordance with the following: Authorized Authority Authorized Action Department Head Authorization to make recommendation to the General Manager. General Manager Review recommendation of Department Head and approve amendments provided that the total contract shall not exceed $100,000 (Includes original contract and all amendments). General Manager shall be authorized to approve all amendments for chemical contracts, unless contract unit price has been changed from original Board award. If the original chemical contract was approved in the budget pre-approval process, a unit price increase exceeding the unit price awarded in the budget pre- approval year would require Board approval. Contracts awarded in the pre-approval process based upon a not to exceed amount, not unit price, may be increased up to the amount pre-approved in the budget year the contract was awarded. The General Manager shall manage the expenditure of all approved continency funds in connection with all amendments and change orders approved by the Board, the standing committees, and the General Manager. Resolution No.OCSD 040E 32 of 35 Board of Directors Receive recommendations of General Manager, approve all amendments and change orders that exceed the maximum aggregate amounts established at the time that original Agreements are approved.fier Board approved GORtFaStS OF P61FGhaGGS UP at time of R;.vaFd, to be FRanaged by!he GpnpFnl C. Change Orders to Existing Public Works Agreements This subsection (C) shall apply to "existing public works agreements" from January 2007 to July 1. 2007. Thereafter, existing agreements should be governed by the other provisions of this resolution for purposes of this subsection (C). The term "existing public works agreements" shall mean public works agreements approved prior to the effective date of this resolution. The award and execution of a Public Works Agreement Change Order shall be made in accordance with the following delegations of authority: Authorized Authority Authorized Action General Manaaer Receive recommendation of the Department Head and approve contract changes in an amount up to $100,000 per Public Works agreement. When the total combined value of all Change Orders approved by the General Manager. the E&O Committee and /or Board of Directors equals or exceeds $100,000, the General Manager's authodzabon limit has been satisfied. Note that this is the total amount of Change Order additions (not net amount of change order). Total cumulative amount for all Change Order additions not to exceed 5% of the original contract amount or$100,000, whichever is less. E & O Committee Receive recommendation of the General Manager and approve Public Works agreement changes from$100,001 through $200,000 per Public Works agreement. When the total combined value of all Change Orders approved by the General Manager. the E&O Committee and/or Board of Directors equals or exceeds Rwo41ilon No.OCSD 04-08 33 of 35 $200,000, the E&O's authorization limit has been satisfied. Note that this is the total amount of Change Order additions(not net amount of Change Order). Total cumulative amount for all Change Order additions not to exceed 10% of the original contract amount or$200,000, whichever is less. Board of Directors Aoorove Change Order additions in amounts over 10% of the original contract amount, or greater than $200,000. Section 7.02: TASK ORDERS FOR FACILITIES ENGINEERING - PROJECTS: A. Task Orders The award and execution of a Task Order shall be made in accordance with the following Delegation of Authority: Authorized Authority Authorized Action Director of Engineering Authorization to evaluate proposals and execute a Task Order up to$50,000. B. Amendments The award and execution of an amendment to an issued Task Order shall be made in accordance with the following Delegation of Authority: Authorized Authority Authorized Action Director of Engineering Authorization to negotiate amendments and make recommendations to the General Manager. General Manager Receive recommendation of DOE and approve each amendment to the Task Order in an amount up to $50,000. When the total combined value of the Task Order and all amendments equals or exceeds $100,000. the General Manager's amendment authorization limit has been satisfied. section 702, P'--R---r WORKS PROJECTS- n Clew O .a n..............� Resoluilon No.OCSD 04-08 34 of 35 made by the GeneFal MaR8gB�. AAhenaed-A,AheritV Authgg7ed Astiea " •`,sazeA ^-., IthArity AutheEiaed-Astiea Resolution No.OCSO 04-08 35 of 35 ARTICLE VIII TRAINING, MEETINGS AND RELATED TRAVEL EXPENDITURES Section 8.01: Purpose and Scope. This Article sets forth the procedures and scope of delegated authority by which OCSD employees are authorized to incur expenses for budget-approved meetings and training in furtherance of OCSD business. Section 8.02: General. A. Training or meetings exceeding $500 will be itemized, as well as possible, in the approved budget. It is recognized that some meetings and training cannot be pre-planned during the budget process. B. All out-of-country travel (excluding Canada and Mexico) requires approval by the Board of Directors. C. Training or meetings requests exceeding $2,000 will be approved by the Department Director. D. Training or meetings requests less than $2,000 will be approved by the Division Manager. E. Established approvals must be received prior to arrangements for meetings or training being made. Section 8.03: Policies and Procedures. All policies and procedures governing training or meetings, such as the use of OCSD forms and justification, will be followed. Rosolub.n No.OCSD 04-08 36 of 35 ARTICLE IX MISCELLANEOUS Section 9.01: Noncompliance. Any transaction failing to comply with this Resolution in any respect is voidable in the discretion of the Board of Directors,and any employee willfully and knowingly violating any provision of this Resolution may be subject to disciplinary action. Section 9.02: Severabllifv. If any section, subsection, subdivision, sentence, clause,or phrase of this Resolution is for any reason held to be unconstitutional or otherwise invalid, such invalidity shall not affect the validity of the entire Resolution or any of the remaining portions thereof. The Board of Directors hereby declares that it would have passed this Resolution, and each section, subsection, subdivision, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional or otherwise invalid. Section 9.03: Effective Date. This Resolution No. OCSD 06-2(>—shall take effect January 1, 2007, upon adoption by the Board of Directors. Section 9.04: Repeal of Prior Resolution. Resolution No. OCSD 04-08 is hereby repealed in its entirety. PASSED AND ADOPTED at a regular meeting of the Board of Directors held November 15, 2006. CHAIR ATTEST: BOARD o .Rror_rnovrlerk of the Board Resole ti No.OCSD 04-05 37 of 35 STEERING COMMITTEE Meeting Date To ad.ofar. 11/1506 AGENDA REPORT em Number Item Number 9fa) Orange County Sanitation District FROM: James D. Ruth, Interim General Manager Originator: Gail Garrett, Committee Secretary SUBJECT: December Agenda Items for Consideration by Working Committees GENERAL MANAGER'S RECOMMENDATION Review with staff the agenda items tentatively scheduled for review by the Working Committees in December SUMMARY Staff routinely prepares for the Steering Committee a list of items scheduled for presentation to the Working Committees and the Board at their next monthly meetings. This allows the Steering Committee the opportunity to review these items early enough to make reassignments in the review or approval process. The following items are scheduled to be considered by the Committees in December: OMTS Committee: 1. Consider Odor Control Treatment System for P2 Truck Loading 2. Consider SynaGro Contract Amendment 3. Consider Bleach Contract 4. Consider Odor Control Policy 5. Consider IT Strategic Planning Services 6. Receive and File Asset Management Plan 7. Consider SP-53 Electronic O&M Manual Consultant Agreement 8. Consider Potable Water Assessment PDC Committee: 1. Ratify Change Order No. 21 for Job No. 1-2-4, Bushard Trunk Sewer Rehabilitation 2. Ratify Change Order No. 1 and Approve Closeout Agreement for Job No. P2-90A, Oil Well Excavation and Reabandonment at Plant No. 2 3. Ratify Change Order No. 11 and Approve Closeout Agreement for Job No. P2-47-3, Secondary Treatment Facilities Process Upgrades at Plant No. 2 4. Approve PSA for Job No. J-33-3, Power Monitoring and Control at Plant Nos. 1 and 2 5. Approve Amendment No. 2 to PSA for Job No. 1-2-4A, Bushard and Ellis Intersection 6. Approve Amendment No. 1 to PSA for Job No. P1-71, Headworks Rehabilitation/Refurbishment 7. Award Construction Contract for Job No. 1-10B, Ellis Avenue Pump Station Construction FAHR Committee: 1. Consider Joint Campus Security Program 2. Consider Security Policy 3. Report on Public Affairs Strategic Plan 4. Report on Delegation of Authority 5. Report on Owner Control Insurance Programs 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 CEOA FINDINGS Not a project. ATTACHMENTS NA 99 H Weq Cendal5feedn4 Com t[eo OM 1%7.%a)Us[of AR bDeeeftec8 d= FensM MOM Page 2 STEERING COMMITTEE Meeuneoat� Toed.ofob. t11 W AGENDA REPORT em Number Iem Number 9b 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 November 15, 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 monthly meetings. This allows the Steering Committee the opportunity to review these items and to make reassignments in the review or approval process. The following items are scheduled to be considered by the Board at the November 15, 2006 meeting: CONSENT CALENDAR 8. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. Order the minutes for the Streamlining Workshop held on October 18, 2006 and the regular meeting held on October 25, 2006, to be filed and deemed approved, as mailed. b. (1) Receive and file summons and complaint re Nguyen, at al. v. Orange County Sanitation District, et al., Orange County Superior Court Case No. 06CC11453; and, (2)Authorize General Counsel to appear and defend the interests of the District. END OF CONSENT CALENDAR C. Consideration of items deleted from Consent Calendar, if any. COMMITTEE REPORTS AND RECOMMENDED ACTIONS 9. STEERING COMMITTEE Consent Calendar a. Order draft Steering Committee Minutes for the meeting held on October 25, 2006, to be filed. b. Adopt the 2007 Legislative Platform and Goals. C. Authorize a one-year renewal to the agreements for State and Federal Advocacy services from January 1, 2007 through December 31, 2007, as follows: Sacramento Representatives Scott Baugh (currently with Platinum $5,000 per month Advisors) $5,000 per month , Townsend Public Affairs (TPA) Federal Representatives Eric Sapirstein and John Freshman $10,000 per month (ENS Resources and Troutman Sanders Public Affairs) Non-Consent Calendar d. (1)Adopt Resolution No. OCSD 06-25, Establishing Rules of Procedure for the Conduct of Business of the District, and Repealing Resolution No. OCSD 04-15; and (2)Adopt Resolution No. OCSD 06-26, Establishing Policies and Procedures for the Award of Purchase Orders and Contracts; Award of Public Works Project Contracts; Professional Services Contracts; and Delegation of Authority to Implement said Policies and Procedures;and Repealing Resolution No. OCSD 04-08. e. Consideration of items deleted from Consent Calendar, K any. 10. OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE (OMTS) OMTS Consent Calendar a. Order draft Operations, Maintenance and Technical Services Committee Minutes for the regular meeting held on November 1, 2006, to be filed. b. Approve Amendment No. 1 to the Agreement for the Management of Biosolids with EnerTech Environmental, Inc., in a form approved by General Counsel, to increase the quantity of biosoltds delivered from 200 tons to 225 tons, extending the contract period from 20 to 25 years, and to increase the cost from $69.40 to $72.40 per ton,for an annual amount not to exceed $5,950,000 plus existing cost escalators. C. (1)Authorize the General Manager to award up to four sole source contracts for an amount not to exceed $90,000 each,for testing alternative chemicals for advanced primary treatment to General Chemical, Summit Research Labs, Aluminum Chemical Specialties, and Kemira Water Solutions, Inc.; and, H�eepn.re,nvsieen,y cm..u..voaai rv.Nni w a ur a wmev eeve.r.i.eoc Page 2 (2)Authorize the General Manager to approve the sole source procurement of chemical tanks, containment equipment, and service and delivery fees from Baker Tank Rental for an amount not to exceed $45,800. OMTS Non-Consent Calendar d. Consideration of items deleted from OMTS Calendar, if any. 11. PLANNING, DESIGN AND CONSTRUCTION COMMITTEE (PDC) PDC Consent Calendar a. Order draft Planning, Design and Construction Committee Minutes for the regular meeting held on November 2, 2006, to be filed. b. Ratify Change Order No. 2 to Bushard Trunk Sewer Rehabilitation Pipe Procurement, Contract No. 1-2-4P, with Ameron International, authorizing an addition of$85,580 and 326 calendar days, increasing the total contract amount to$7,970,306. C. Ratify Change Order No. 3 to Ellis and Bushard Intersection, Contract No. 1-2-4A, with Mike Bubalo Construction, Inc., authorizing an addition of$552,984, increasing the total contract amount to$10,928,826. d. (1) Ratify Change Order No. 2 to Sunflower Interceptor Manhole Rehabilitation, Contract No. 7-21,with Sancon Engineering, Inc., authorizing a reduction of $24,675. reducing the total contract amount to $2,078,346; and, (2)Accept Sunflower Interceptor Manhole Rehabilitation, Contract No. 7-21, as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. e. Ratify Change Order No. 14 to Effluent Pump Station Annex, Job No. J-77, with J.F. Shea Construction, Inc.,authorizing an addition of$41,133, increasing the total contract amount to$44,638,467. f. Ratify Change Order No. 30 to Primary Clarifiers 16-31 and Related Facilities, Job No. P11-37, with Margate Construction, authorizing an addition of$52,594, increasing the total contract amount to$72,880,080. g. Approve a budget increase of$2,200,000 for Rehabilitation of District Siphons, Contract No. 2-68, for a total budget amount of$7,467,000. h. (1)Authorize staff to negotiate Amendment No. 1 to the Professional Services Agreement with Carollo Engineers for design services for the Headworks Rehabilitation/Refurbishment, Job No. P1-71; and, (2) Authorize the General Manager to bid and award an equipment pre-purchase contract, Variable Frequency Drive Equipment for Headworks No. 2, Specification No. E-2006-314BD, in connection with Headworks Rehabilitation/ Refurbishment, Job No. P1-71, in an amount not to exceed $600,000. N NeMbQ�Wemn9 CmmYeeeV 1 fn.NW W m Au fx No-m+mer e®W-7 dm Rrn,ed. Page 3 I. Approve a budget increase of$800,000 for a total project budget of$4,611,000 for the Realignment and Rehabilitation of Big Canyon Offsite Trunk Sewer, Contract No. 5-62. j. (1)Approve Amendment No. 4 to Cooperative Projects Program Contract No. 0126 with the City of La Habra, providing for a contract modification with no additional funding; and, (2)Approve grant funding for$380,000 for Closed Circuit Television inspection and sewer condition assessment from the City of Buena Park to be paid in Fiscal Year 2008/09. PDC Non-Consent Calendar k. Consideration of items deleted from PDC Consent Calendar, if any. 12. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (FAHR) FAHR Consent Calendar a. Order draft Finance, Administration and Human Resources Committee Minutes for the Special Meeting held on October 26, and regular meeting held on November 8, 2006,to be filed. (Minutes for 11/8/06 meeting will be distributed at 11/15/06 Board Meeting.) b. Receive and file the 2006-07 First Quarter Financial Report for the period ending September 30, 2006. C. Approve Amendment No. 1 to the Real Property Lease Agreement, Specification No. L-018, with Village Nurseries Wholesale, LLC, providing for a lease extension effective December 1, 2006 through November 30, 2011, with option to renew for three additional 5-year periods. d. Receive and file the Comprehensive Annual Financial Report for the year ending June 30, 2006, prepared by staff and audited by Mayer Hoffman McCann P.C., Certified Public Accountants. e. Approve the reclassification of four OCSD positions affecting incumbents predlcated on employees satisfying position qualifications and the indefinite and ongoing need to accomplish work at the higher level, providing for: (1) Reclassification of the Human Resources Manager position at PG 94 ($8,764 - $10,955)to Human Resources and Employee Relations Manager at PG 96 ($9,207-$11,509); (2) Reclassification of Source Control Inspector I position at PG 69 ($4,729- $5,911)to Source Control Inspector II at PG 73 ($5,217-$6.523); (3) Reclassification of Information Technology Analyst I position at PG 71 ($4,966-$6,207)to Information Technology Analyst 11 at PG 75 ($5,483- $6,854); and, H:We~ftebMnO 117.Kb)U.1 a nal Ibr HownEeremmar.l.es R, W: � Page 4 (4) Reclassification of Senior Information Technology Analyst position at PG 83 ($6,680-$8,349)to Principal Information Technology Analyst at PG 87 ($7,372- $9,216). FAHR Non-Consent Calendar f. Consideration of items deleted from FAHR Consent Calendar, W any. 13. LEGISLATIVE AFFAIRS COMMITTEE Legislative Affairs Consent Calendar a. Meeting scheduled for November 14, 2006 was cancelled. Legislative Affairs Non-Consent Calendar b. Consideration of items deleted from Legislative Affairs Consent Calendar, if any. 14. GWR SYSTEM STEERING COMMITTEE (GWRSSC) Verbal report re Joint Groundwater Replenishment System Steering Committee meeting held on November 13, 2006. GWRSSC Consent Calendar a. No action Items to consider. GWRSSC Non-Consent Calendar b. Consideration of items deleted from GWRSSC Consent Calendar, If any. NON-CONSENT CALENDAR 15. 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) NWep11a0OiYB491EPInBCamn,eeV'KBttlq.91e1 UM d AM I Na.BwNa�1.Ooc Page 5 ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CEQA FINDINGS Not a project. ATTACHMENTS N/A 99 H:wopoaWodaffemoq a onmiee=smi.BfUf usf of AR for foovem rBoard-ar.i.dm Reasce: MCM Page 6 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 '