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HomeMy WebLinkAbout2007-08 MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, August 22, 2007, at 5:30 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, August 22,2007 at 5:30 p.m., in the District's Administrative Office. (1) A quorum was declared present, as follows: STEERING COMMITTEE MEMBERS: DIRECTORS ABSENT Directors Present: Jim Ferryman, Chair STAFF PRESENT: Doug Davert, Vice Chair Jim Ruth, General Manager Mark Waldman,Administration Committee Bob Ghirelli, Assistant General Manager Chair Nick Arhontes, Director of Operations and Larry Crandall, Operations Committee Chair Maintenance Steve Anderson Lorenzo Tyner, Director of Finance and Cathy Green Administrative Services Phil Luebben Michael Gold, Legislative Affairs Liaison Jeff Reed, Human Resources Manager OTHERS PRESENT: Penny Kyle, Clerk of the Board Bradley R. Hogin, General Counsel Heather Dion Ryal Wheeler Juanita Skillman �� THELCLLER IN K OF THFICE gqOgqF�� (2) APPOINTMENT OF CHAIR PRO TEM ORANGE CSE SANITA7ElON OISTRICI No appointment was necessary. SEP��2//6 2007 (3) PUBLIC COMMENTS gy; •7�. There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Chair Jim Ferryman reported he requested Directors compensation be listed on the agenda for discussion, noting that it had been a few years since the issue was considered. He requested staff to conduct a survey of local agencies and submit an agenda report for discussion at the September meeting. Director Ferryman noted that Celeste Cantu, SAW PA General Manager, would be providing a Minutes of the Steering Committee August 22, 2007 Page 2 watershed presentation at the Board of Directors meeting that evening; and Directors Crandall and Green attended the CASA conference in San Diego and received the CASA 2007 Public Education and Outreach Award on behalf of the District for the Residential Fog Can Campaign. (5) REPORT OF GENERAL MANAGER Mr. Ruth reported briefly on the Workers Compensation Plan; Succession Plan, NWRI Panel Review; Safety study, and the success of the Contractors'Open House. (6) REPORT OF GENERAL COUNSEL General Counsel, Brad Hogin, reported that the U.S. District Court granted summary judgment in favor of OCSD and other plaintiffs on two claims in City of Los Angeles v. Kern County. The case involved a challenge to Kern County's Measure E. Adopted by the voters in 2006, Measure E banned the land application of biosolids in the unincorporated areas of Kem County. The Court ruled that Measure E violated the Commerce Clause of the U.S. Constitution. The Court also ruled that Measure E was preempted by the California Integrated Waste Management Act. The Court will presumably permanently enjoin the implementation of Measure E, allowing the Sanitation District to continue using Tule Ranch for biosolids application. This will save the Sanitation District as much as $1 million per year. Kern County will probably appeal the ruling. Legal costs for the defense amounted to about$75,000,which was$25,000 below estimated legal costs. (7) ACTION ITEMS a. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the July 18, 2007 Steering Committee meeting. (8) INFORMATIONAL ITEMS a. Legislative Affairs Report: Christopher Townsend and Heather Dion from Townsend Public Affairs provided an update on State Legislative items including the recently passed State Budget and the status of the Water Bond implementation Legislation. Michael Gold provided an update on Federal legislative matters and the District's design-build legislation, SB 645. b. The agenda items scheduled to be presented to the Board at the August 22, 2007 meeting were reviewed. C. The agenda Items scheduled to be presented at the Operations Committee meeting on August 29, 2007, and the Administration Committee meeting on September 12, 2007, were reviewed. Minutes of the Steering Committee August 22, 2007 Page 3 (9) CLOSED SESSION The Steering Committee convened at 6:09 p.m. in Closed Session, pursuant to Government Code Section 54957(b)(1) and 54957.6 to discuss two matters. Agenda Item No. 9(a)(3)was not discussed. 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 Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. At 6:25 p.m., the Committee reconvened in regular session. (10) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (12) CONSIDERATION OF UPCOMING MEETING The next Steering Committee meeting is scheduled for Wednesday, September 26, 2007 at 5:30 p.m. (13) ADJOURNMENT The Chair declared the meeting adjourned at 6:25 p.m. Submitted by: 7 Penny M, Cyle Clerk of the Board N Wequp)nWlLeamp CmuMnpnoT09JNlwn)fe1OliXl)9eerrp M�MlS eac STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and the Agenda for the Steering Committee meeting to be held on - 0 t? , was duly posted for public inspection in the main lobby of the District's offices on 4° d9 IN WITNESS WHEREOF, I have hereunto set my hand this f day of Penny M. Kyle, Clerk of the Board Board of Directors Orange County Sanitation District H:IDEPTGMO\150\i51\3S\FORMS\AGENDA CERTIFICATION-STEERING COMMITTEEAOC ORANGE COUNTY SANITATION DISTRICT 1714+83224 it NOTICE OF MEETING fat. 714i ede,xlsd STEERING COMMITTEE vrxw.ma.00m malting ea4mes CU. dux 81 fi1 fam:32 32/2t2a 8,212/ t ae e� 9e; ORANGE COUNTY SANITATION DISTRICT ,dd4n 01n Nee,,. Feuniain Valiay,C 32ma 13,d WEDNESDAY, AUGUST 22, 2007 - 5:30 P.M. Member Apantlee DISTRICT'S ADMINISTRATIVE OFFICES mtl.e 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708 a,aham fir ' www.00SD.COM liunun PeN proves faunwm U.aley 1 ullmnn, A regular meeting of the Steering Committee of the Orange Memoytnn aam:n 9 9 9 9 G ryna County Sanitation District will be held at the above location, date a HaMx and time. f ea AlanuGxi M:wince, Bsach [iranye vl:ice,ni' All. A a"el aea9, htea,an Trs[m rna aa,a ,1nrw tirade :egn:y of Orange ,nhary Oiecrivc l:e a Mass IA;:Twep f:.ry Water OLbrlgbe Inane {$HN:4 Tp mair.[ain world-class leadership M wastewater end ware,resource managemen[. V SNM1 fC M1x Ixf ENN STEERING COMMITTEE AND BOARD MEETING DATES September 26, 2007 October 24, 2007 November 28, 2007 'December 19, 2007 January 23, 2008 February 27, 2008 March 26, 2008 April 23, 2008 May 28, 2008 June 25, 2008 July 23, 2008 August 27, 2008 'September 17, 2008 -Meetings being held the third Wednesday of the month. STEERING COMMITTEE (1) Roll Call: Meeting Date: August 22, 2007 Meeting Time: 5:30 p.m. Committee Members Jim Ferryman, Board Chair................................................. ........... _ Doug Davert, Vice Chair..................................................... ...........— Mark Waldman,Administration Committee Chair................ ........... Larry Crandall, Operations Committee Chair....................... ...........— PhilLuebben....................................................................... ...........— CathyGreen....................................................................... ..........._ Steve Anderson.................................................................. ........... Others Brad Hogin, General Counsel............................................. ........... - Staff Present Jim Ruth, General Manager....................................................— Bob Ghirelli,Assistant General Manager.................................. . Nick Arhontes, Director of Operations&Maintenance................. .— Jim Herberg, Director of Engineering....................................... . Ed Torres, Director of Technical Services..................................— Lorenzo Tyner, Director of Finance&Administrative Services........ Michael Gold, Legislative Affairs Liaison.................................... Penny Kyle, Clerk of the Board........................................... ._ Other Staff Present AGENDA REGULAR MEETING OF THE STEERING COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, AUGUST 22, 2007 AT 5:30 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California 1. Declaration of Quorum 2. Appointment of Chair Pro Tem, if necessary 3. Public Comments 4. Report of Committee Chair a. Directors Compensation 5. Report of General Manager 6. Report of General Counsel 7. Action Items A. Approve minutes of the July 18, 2007 Steering Committee meeting. 8. Information Items A. Legislative Affairs Report—Gold (Book Page 7) B. Review and consideration of Agenda Items for Board of Directors Meeting of August 22, 2007. (Book Page 13) C. Review and consideration of Agenda Items for Operations Committee Meeting on August 29, and for Administration Committee Meeting on September 12, 2007. (Book Page 16) Book Page 1 August 22, 2007 9. Closed Session During the course of conducting the business set forth on this agenda as a regular meeting of the Steering Committee,the Chair may convene the Committee in dosed session to consider matters of pending real estate negotiations. pending or potential litigation,or personnel matters,pursuant to Government Code Sections 54956.8,54956.9,54957 or 54957.6,as noted. Reports relating to(a)purchase and sale of real property;(b)matters of pending or potential litigation;(c)employment actions or negotiations Wth 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. PUBLIC EMPLOYEE APPOINTMENT (Government Code Section 54957(b)(1)) Title: General Manager 2. Confer with General Manager re salaries, benefits, terms and conditions of employment for At-will Contracts with Executive Management Team (Government Code Section 54957.6). 3. Confer with Legal Counsel re existing litigation (Subdivision (a)of Section 54956.9) Case: County of Kern v. OCSD, Orange County Superior Court, Case No. 070004515. B. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session. 10. Other business and communications or supplemental agenda items, if any 11. Matters which a Director may wish to place on a future agenda for action and staff report. 12. Future Meeting Date: The next Steering Committee Meeting is scheduled for September 26, 2007, at 5:30 p.m. 13. Adjournment Book Page 2 August 22, 2007 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 Clerk of the Board. Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or because there is a need to take immediate action,which need came to the attention of the Committee subsequent to the posting of agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Public Comments: Any member of the public may address the Steering Committee on specific agenda items or matters of general interest. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). Consent Calendar: All matters placed on the consent calendar are considered as not requiring discussion or further explanation, and unless a particular item is requested to be removed from the consent calendar by a Director of staff member, there will be no separate discussion of these items. All items on the consent calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the consent calendar shall be considered in the regular order of business. The Committee Chair will determine if any items are to be deleted from the consent calendar. Items Continued: Items may be continued from this meeting without further notice to a Committee meeting held within five(5)days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adioumment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955(posted within 24 hours). Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at(714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Notice to Committee Members: For any questions on the agenda or to place any items on the agenda, Committee members should contact the Committee Chair or Clerk of the Board ten days in advance of the Committee meeting. Committee Chair: Jim Ferryman (714)283-5910 ext. 123 General Manager: James D. Ruth (714)593-7110 General Counsel: Brad Hogin (714)564-2606 Clerk of the Board: Penny Kyle (714)593-7130 E-mail: pkvle@ocsd corn Book Page 3 MINUTES OF STEERING COMMITIEE MEETING Orange County Sanitation District Wednesday, July 18, 2007, at 5:30 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, July 18, 2007 at 5:30 p.m., in the District's Administrative Office. (1) A quorum was declared present, as follows: STEERING COMMITTEE MEMBERS: DIRECTORS ABSENT Directors Present: Phil Luebben Jim Ferryman, Chair Doug Davert, Vice Chair STAFF PRESENT: Mark Waldman,Administration Committee Jim Ruth, General Manager Chair Bob Ghirelli,Assistant General Manager Larry Crandall, Operations Committee Chair Nick Arhontes, Director of Operations and Cathy Green Maintenance Steve Anderson Jim Herberg, Director of Engineering Lorenzo Tyner, Director of Finance and OTHERS PRESENT: Administrative Services Bradley R. Hogin, General Counsel Michael Gold, Legislative Affairs Liaison Jackie Nutting Penny Kyle, Clerk of the Board Juanita Skillman (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Chair Jim Fenyman reported that Bushard Street is now open to traffic throughout Fountain Valley and Huntington Beach. He also announced that Brent Ives, BHI Management Consulting, will be facilitating the Board workshops scheduled for August 1�and e; September le; and October e. (5) REPORT OF GENERAL MANAGER Mr. Ruth provided highlights of his activities for fiscal year 06107, and proposed work plan for fiscal year 07/08. Book Page 4 Minutes of the Steering Committee July 18, 2007 Page 2 (6) REPORT OF GENERAL COUNSEL General Counsel Brad Hogin did not give a report. (7) ACTION ITEMS a. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the June 27, 2007 Steering Committee meeting. b. Nick Arhontes, Director of Operations& Maintenance, provided a brief report on the waste discharge requirement compliance efforts and reported that the sanitation district is subsidizing the small diameter local sewers in parts of the City of Tustin and unincorporated areas north of the city. The Steering Committee concurred that this issue should move to the Operations Committee for further review, recommendation and subsequent approval by the Board of Directors. MOVED, SECONDED AND DULY CARRIED TO RECOMMEND TO THE OPERATIONS COMMITTEE TO: (1) Recommend to the Board of Directors to receive and file Staff Report re FY O6/07 Strategic Initiatives-Local Sewer Services, dated January 2007 and revised April 2007; and, (2) Refer said report to the Operations Committee for consideration of staff recommendations. (8) INFORMATIONAL ITEMS a. Legislative Affairs Report: Michael Gold provided a mid-year progress report on adopted goals for the state and federal legislative programs that were incorporated into the 2007 Legislative Platform, as well as an update on the District's design-build legislation, SB 645. b. The agenda items scheduled to be presented to the Board at the July 18, 2007 meeting were reviewed. (9) CLOSED SESSION The Steering Committee convened at 5:54 p.m. in Closed Session, pursuant to Government Code Section 54957(b)(1)) to discuss one matter. 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 Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. At 6:10 p.m., the Committee reconvened in regular session. Book Page 5 Minutes of the Steering Committee July 18, 2007 Page 3 (10) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS- IF ANY There were none. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (12) CONSIDERATION OF UPCOMING MEETING The next Steering Committee meeting is scheduled for Wednesday, August 22, 2007 at 5:30 p.m. (13) ADJOURNMENT The Chair declared the meeting adjourned at 6:10 p.m. Submitted by: A� - Penny M. yle tl Clerk of the Board HVBp'1pBMWWe CM IT4B01l WOM71W) RSle MWe& % Book Page 6 STEERING COMMITTEE meeunvoate To 9d.of Dir. 0a/W2007 AGENDA REPORT Item Number Item Numbe 8(a) Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Michael Gold, Government Affairs SUBJECT: Legislative, Policy and Political Update GENERAL MANAGER'S RECOMMENDATION Information Only SUMMARY This report is the monthly update from Washington, D.C. and Sacramento highlighting lobbyists' activities, OCSD legislative priorities and other information of interest to the Steering Committee. PRIOR COMMITTEE/BOARD ACTIONS None ADDITIONAL INFORMATION AB 1489 (Huffman)—Wastewater to be eligible under Proposition 84 One of the District's highest priorities this year is to pursue grant funds from the bond measures passed last November; however, we quickly realized that wastewater agencies are usually ineligible to receive these funds. The Board, lobbyists and staff have worked to include language in the bond implementation bills specifying that wastewater projects are eligible activities. The efforts included meetings with Lisa Kalustian from the Governor's office, legislators and their staff and working with CASA. I am pleased to report that AB 1489(Huffman), which is one of the trailer bills implementing Proposition 84, now specifies that wastewater agencies can compete for funds under the Integrated Regional Water Management Plans (IRWMP). While the bill still needs to make it through the legislature, this is a huge development and OCSD played a major role in making this happen. Navigating the Federal Maze—Authorizations,Appropriations, Budgets and the SARI What does it all mean? Staff has reported previously about two separate measures moving through Congress that will assist our efforts to fund the relocation of the SARI —the Water Resources Development Act (WRDA) containing an authorization for the SARI relocation and the Water and Energy Bill increasing the overall budget of the Mainstem project. F.N.M4102-1 npmae aepm-SC nan..a.o,maai Page 1 Book Page 7 The Federal process for spending money is a complicated one so it is important to sort out how it all works in the context of our request to fund the relocation of the SARI. As with all legislative processes there are always exceptions and ways to get around the formal process, but in general this is how Congress works: Spending money is a two-step process: authorization and appropriation of funds. These two things generally happen in separate pieces of legislation. Authorization means Congress is giving an agency permission to spend funds. This permission is needed prior to the dollars being set-aside. Authorizations can be years in advance of the funds actually being spent, but they are important because they create a framework. The SARI provides a good example. The four-mile stretch of the SARI below Prado Dam needs to be relocated prior to the Dam's expansion because the increased flows down the river could cause a break. The line lies within the Santa Ana River and is linked to the County of Orange's flood control responsibilities; however, when Congress approved the Santa Ana Mainstem project to raise Prado Dam and make improvements along the Santa Ana River for flood protection, the SARI was not considered nor included. The County or the Army Corps of Engineers did not have authorization from Congress to spend Federal dollars to relocate the SARI; thus, any dollars expended to relocate the line would have to be local or state and OCSD would absorb most of the costs. To define the SARI as part of the overall Mainstem Project means that relocation costs can be recovered from the Federal government and ensures that OCSD is repaid its loan to the County of Orange. This year, we have pursued an amendment to the Mainstem Project that would authorize the expenditure of Federal dollars to relocate the SARI line in the WRDA legislation. By inserting language in WRDA that bundles the SARI line with the overall Santa Ana Mainstem (flood control) project, we get the permission we need to use Federal dollars. The second step, after receiving permission, is to allocate, or budget funds, to spend on a project. First Congress gives permission (authorization) then they set-aside funds to do the work, which is called an appropriation. In the case of the SARI, the WRDA bill grants permission but then a vehicle is needed to appropriate the funds. The Energy and Water Bill is the vehicle to appropriate the funds. Our legislative staff has worked to insert language in the Energy and Water bill that increases the total amount budgeted to the Santa Ana Mainstem Project by $100 million so funds are set- aside to relocate the SARI. This action means the not only is the SARI now eligible to use Federal funds for relocation (the authorization through WRDA); but dollars are set aside in future years to be spent on the project. These two separate actions create the overall framework for Federal funds to be spent to relocate the SARI. In future years, staff will have to work with Congress and the Administration to spend the money. When Congress passes budgets for each of the Federal agencies, they spend money within the frameworks described above. Paying for the relocation of the SARI will take several years because spending the money is a function of what is available from year to year. Also, it is difficult to secure the funding before construction is ready to proceed on the project. In the final analysis though, the authorization permits the County to meet its obligations to repay OCSD without delays. Fq No IMA ftan .R.W-SC Page 2 Book Page 8 Federal Legislative Report Eric Sapirstein, ENS Resources John Freshman, Troutman Sanders Public Affairs Group During the month of July, consultants focused their efforts on the SARI Line relocation legislative priority. This involved working with the District's congressional delegation, particularly, Senator Barbara Boxer and Representative Gary Miller. Senator Boxer and her staff were provided information on the urgency to identify the SARI Line as an element of the Santa Ana Mainstem project. They were briefed on the threats to the SARI R R remained in its current location and the damage that would be done if there were a break. Subsequently, the Senator agreed to assist our efforts by inserting language into the Water Resource Development Act (WRDA) of 2007(H.R. 1495). The language in WRDA makes relocation of SARI eligible for federal cost-sharing as part of the overall Santa Ana Mainstem Project. In other words, the change to WRDA ensures that the SARI is part of the total Mainstem Project and Federal Funds could be used for its relocation. At the same time, we worked with Senator Dianne Feinstein and the Committee on Appropriations to guarantee the District's loan to the County (to relocate the SARI)with Federal funds. We have now inserted language into the Energy and Water Development Appropriations bill to increase the overall project cap and guarantee OCSD's loan to the County with Federal funds and ensure that the Federal Government will eventually pay for the SARI's relocation. Congress recessed for the summer on August 3 after the House of Representatives approved the WRDA conference report by a vote of 381-40. The Senate was unable to approve the same conference report prior to recessing because Senator Russ Feingold (D-WI)objected to an effort to limit floor debate. The Senate is expected to give final approval of the conference report on WRDA and send it to the President in early September. What Does the WRDA Outcome Mean for the District? The WRDA language means that relocating the SARI Line will be incorporated into the overall cost of the Santa Ana Mainstem Project and paid for by the Federal Government. Without this language, the relocation of the line would have been completely borne locally. For the District and other local agencies that are advancing the funding for relocation to the County of Orange, this fix allows the District to work with the County and pursue State and now Federal funding to repay the loans. State Legislative Report Heather Dion, Sean Fitzgerald and Chris Townsend, Townsend Public Affairs Political Highlights As the budget stalemate continues, the Assembly remains adjourned and the Senate finished up additional budget deliberation meetings last week without resolution or passage of a budget. The Governor has weighed in, asking Senate Republicans to pass the budget with the additional $700,000 in spending added by the Democrats and trust him to line Rem veto the extra spending. Even with this promise, Senate Republicans are maintaining their position that the additional funds need to be removed in the Senate with concurrence by the Assembly before the budget reaches the Governor's desk. It does not appear there will be any resolution before the Legislature reconvenes on August 20 to finish up the remainder of the session. Additionally, there are two bills up for a hearing in the Senate and Assembly Appropriation Committees on August 20 that allocate portions of Proposition 84: SB 1002 (Perata)and AB Fo,m ND IW1 IgnCe Pepal-X MvaQ 01N 7 Page 3 Book Page 9 1489 (Huffman)allocate Integrated Regional Water Management(IRWM)funding. The $1 billion in funding statewide is allocated by a per capita formula to each of the nine Regional Water Quality Control Board regions with $114 million going to the Santa Ana Region and a $100 million in unallocated funds being distributed through either legislation or at the Department of Water Resource's discretion. The importance of this funding and the manner in which it is distributed is significant because of the widespread elimination of categorical grants replaced by the IRWMP. A further analysis of these bills and TPA's engagement on behalf of OCSD is below. Finally, the Governor continues to work on the details of his 2008 Water Package that includes funding for a statewide storage facility, delta conveyance and ecosystem restoration, as well as monies for local grant programs. Running parallel to his efforts, is Senator Perata's 2008 Water proposal that does not include surface storage and instead puts more funding toward local ureter resource grant programs, including giving locals the ability to decide upon projects such as surface storage,water recycling, desal, and groundwater cleanup. Neither proposal has released details on the financial components of the proposed bonds, but both are targeted for the 2008 ballot. Although the Governor's plan does include a combination of revenue and general obligation bonds, with the revenue bonds being financed through the State Water Contractors based on the beneficial use theory of a delta conveyance system. The earliest we could see a proposal at this point would be the February Presidential Primary, which is expected to have the highest voter turnout of any of the three elections in 2008. TPA has been invited by the Governor's office to participate in a sub-committee, focused on the education and outreach, as well as political component of the bond (i.e. what is a feasible sell to the voters). This group has only met once to review the bond polling that was conducted in the spring and summer. These polls do indicate voters are more willing to pass a water bond if it includes a conveyance system. Priority Legislation AB 1489(Huffman)implements portions of Proposition 84 and now includes wastewater programs and projects as eligible for IRWMP funds. As amended, the legislation allows OCSD to work with SAWPA and other stakeholders to apply for funds related to the Districts priorities. While many regions throughout the state have faced difficulties to integrate a regional approach to this process, the Santa Ana Region has been very successful in doing so through the guidelines set forth in Proposition 50 and has often been referred to as the model of IRWWP. However, even the Santa Ana Region failed to take a completely inclusive approach to the IRWM planning with cities and member agencies not having a seat at the stakeholder table. The Santa Ana Watershed Project Authority is working to amend this process and take an all- encompassing look at how and what projects are submitted for funding. This means including everyone from water and wastewater agencies, to the County and Cities and local community groups to participate in the planning and visioning process. SB 1002 (Perata)allocates portions of Prop 84 and specifically distributes the IRWMP funding included in the bond measure. As of this writing, SB 1002 proposes a reallocation of$40 million away from the regional program to groundwater management and cleanup statewide. While the proposed reallocation of$40 million is less than the original proposal to redistribute$200 million, the move to specify funding allocations rather than allow local agencies to compete and decide how best to spend the bond funds is a troubling prospect and runs counter to the language adopted by the voters. Form No.O M-1 N.Ro-nn-SL RBN90E'.01R 7 Page 4 Book Page 10 State Legislative Report Scott Baugh and Holly Fraumeni, Platinum Advisors Past Month's Activities During the month of July we have continued our lobbying efforts by monitoring legislation of interests to OCSD and design- build related legislation that is currently moving through the legislature. In addition, we are continuously cultivating relationships with Members and staff. On July 20 the California State Assembly passed a version of the budget and went on summer recess until August 20, which is when the legislature is scheduled to reconvene. Please note, the California State Senate has not passed the Assembly's version of the budget; therefore a budget stalemate took place during the last two weeks of July. We will be providing budget updates as they occur to OCSD staff.Also, no committee actions have taken place on legislation of interest to OCSD, yet our office has been active in securing our positions as we approach the last few weeks of the legislative session. Legislation of Interest • AB 800 (Lieu)-This bill was referred to the Senate Committee on Environmental Quality and passed on July 11°1 (5 Ayes to 2 Noes). AB 800 is currently on the Assembly Floor Third Reading File. During the month of June this bill was amended by the author to satisfy the concerns of the OCSD. Soon after OCSD took a"neutral" position on the bill. • AB 642 (Wolk)-Design Build for Sanitation Districts -We are working with the Legislative Affairs Director at CASA in an effort to move this bill, which would authorize design build authority for all sanitation districts before the end of session. This bill was not heard before the committee deadline therefore it is a two-year bill. • AB 916 (Niello)-This bill is still moving through the legislative process and scheduled to be heard on August 20°1 in Senate Appropriations. Platinum has been closely monitoring this bill, specifically its fate in the legislature. For instance, we compared the labor language and the Assembly Floor votes from Niello's bill to OCSD's sponsored design-build legislation. • AB 1406 (Huffman)—This bill was heard in the Senate Committee on Natural Resources and Water and passed with a vote of 6 Ayes and 1 No. It was then referred to the Senate Appropriations Committee where it awaits a hearing date. • AB 1489 (Huffman)—This bill was referred the Senate Committee on Natural Resources and Water. We received a"support" letter from OCSD and delivered copies to members of the committee and the senate, as well as to republican consultants. • SB 966 (Simitian)—This bill was referred to the Assembly Health Committee and passed with a vote of 4 Ayes and 2 Noes. It was then referred to the Assembly Appropriations Committee. Platinum has been working collectively with the coalition in support of this bill. There is intense political opposition from the retailers. At this time, the Administration has not weighed in. We will continue to actively lobby for support of the measure. • Design-Build Issues: In June, the Republican and Democrat consultants made a deal with AFSCME to remove their opposition by including the following amendment"Except as provided in this section, nothing in this act shall be construed to affect the application of any other law.' This was a significant breakthrough as AFSCME has been an effective force in defeating several design-build proposals during the last two legislative sessions. The only "general opposition"that remains to the Design-Build proposals is the Association of Building Contractors on the grounds that in some parts of the state, members will be disadvantaged by design-build proposals. Forth No.orrice-+ nowpe Rwa,-u RrnwE OtM1�4'➢] Page 5 Book Page I I Other Design Build Legislation AB 916 N( iello) Public contracts: alternative procurement procedure: County of Sacramento. Status: 07/17/2007-Read second time, amended, and re-referred to Com. on APPR. Location:07/1 72 0 07-5 APPR. Summary: Would declare the intent of the Legislature to authorize an alternative method of procurement for airport-related construction projects in the County of Sacramento.This bill would authorize the County of Sacramento to use the airport-improvement construction method,as defined, for contracting on airport- related construction projects, as specified.This bill would establish a procedure for the submission and evaluation of bids, as specified.This bill would also require the County of Sacramento to submit a report, as specified,to the Legislative Analysts Office if it utilizes this alternative method of procurement.This bill contains other related provisions and other existing laws. AB 1510 Pama Design-build: counties. Status: 07/09/2007-In committee: Set, second hearing. Hearing canceled at the request of author. Location: 061192007-S L. GOV, Summary:Would authorize the County of Kern to use the design-build process.The bill also would make legislative findings and declarations as to the necessity of a special statute for the County of Kem.This bill contains other related provisions and other existing laws. SS 233(Cox)Public contracts: design-build contracting. Status: 07/02/2007-Read second time.To third reading. Location: 07/022007-A THIRD READING Summary:Would change the definition of project to mean the construction of a building and improvements directly related to the construction of a building, and county wastewater treatment facilities. This bill would also change the findings and declarations for this provision to state the intent of the Legislature to enable the specified counties to use the design-build method for buildings and county sanitation wastewater treatment infrastructure.This bill would also remove a portion of the legislative findings and declarations. SB 416(Ashburn)Design-build: counties. Status:07/19/2007-From committee: Do pass. (Ayes 11. Noes 0.) Location: 07/182007-A APPR. Summary: Would authorize any county, with the approval of the board of supervisors, to enter into design-build contracts, as defined, in accordance with specified provisions. This bill contains other related provisions and other existing laws. AB 614(Simitian)Public works: design-build contracts. Status: 07/192007-From committee: Do pass as amended. (Ayes 11. Noes 4.) Location: 07/18/2007-A APPR. Summary: Existing law authorizes, until January 1, 2010, a school district governing board to enter into a design-build contract, as defined, in which factors in addition to price and cost may be considered in awarding a contract for the design and construction of a school facility that exceeds$10,000,000.This bill instead would authorize a school district governing board to enter into those contracts that exceed $2,000,000.This bill contains other related provisions and other existing laws. JR:mg F0.N0.U0+102-1 n,-de Ray,l-sc Revned:0MM7 Page 6 Book Page 12 STEERING COMMITTEE Meeting Date TORE.of Dir. 08? )07 AGENDA REPORT Item Number Item Number Orenge County Sanitahon Dlstnct am I FROM: James D. Ruth, General Manager Originator: Penny Kyle, Clerk of the Board 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 August 22, 2007 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 make reassignments in the review or approval process. The following items are scheduled to be considered by the Board at the August 22, 2007 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 regular meeting held on July 18, 2007, to be filed and deemed approved, as mailed. END OF CONSENT CALENDAR b. 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 July 18, 2007, to be filed. Non-Consent Calendar b. Consideration of items deleted from Consent Calendar, if any. Book Page 13 10. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar a. Order Joint Groundwater Replenishment System Steering Committee Minutes for the meeting held on July 9, 2007, to be filed. GWRSSC Non-Consent Calendar b. Consideration of items deleted from GWRSSC Consent Calendar, if any. NON-CONSENT CALENDAR 11. Ratify use of General Manager's emergency purchasing authority, Resolution No. OCSD 07-04, authorizing the issuance of P.O. No. 61463-OS to Jamison Engineering for a total amount not to exceed $127,121.84, to include all services, delivery and taxes. 12. Adopt Resolution No. OCSD 07-18, Levying Assessment Installments in lieu of the Payment of Sewer System Annexation Fees and Capital Facilities Capacity Charges Incidental to the Connection of Assessor's Parcel No. 502-353-02 to the Sewer System. 13. Approve an agreement with the Santa Ana Watershed Project Authority (SAWPA) allowing the purchase of one (1) million gallons per day of Treatment and Disposal Capacity Rights for the total amount of$4,547,250, in a form approved by General Counsel. 14. (a) Adopt Resolution No. OCSD 07-19, Certifying the Program Environmental Impact Report for the Collection System Improvement Plan, Job No. 7-61, prepared by IPMC; (b) Make Certain Findings Relating to Environmental Effects identified in the Program Environmental Impact Report; (c) Adopt a Statement of Overriding Considerations; (d) Adopt a Mitigation Monitoring and Reporting Program; and, (a) Approve the Collection System Improvement Plan, Job No. 7-61. 15. (a) Approve Plans and Specifications for the Rehabilitation of District Siphons, Contract No. 2-68, on file at the office of the Clerk of the Board; (b) Approve Addendum No. 1 to the plans and specifications; (c) Receive and file bid tabulation and recommendation; H'.Weq�It wCwmreXee�W MOMw W.Lim dM WMouM Bo M,. a«ie.a.arzax Page 2 Book Page 14 (d) Approve a contract with Ken Thompson, Inc. for the construction of Rehabilitation of District Siphons, Contract No. 2-68, for a total amount not to exceed $4,537,600. and, (e) Approve a 5% contingency ($226,900). 16. (a) Receive and file 2006-2007 Orange County Grand Jury's report on Orange County's Beaches:An Environmental Scorecord, dated May 25, 2007; and, (b) Authorize the General Manager to respond to said report addressing three key points. X`GaJW^^EaVSlee^M Comm:Tee1]itl]N90N:mm 91D)LiG6Mf M RW+sl lon60¢ Page 3 Book Page 15 STEERING COMMITTEE Meeting Date To ad.of oil t 1MI07 AGENDA REPORT Item Number Item Number 8(c) Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Penny M. Kyle, Clerk of the Board SUBJECT: August and September 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 August and September 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 Operations Committee on August 29, and the Administration Committee on September 12: Operations Committee: 1. Approve PSCA with Dudek Engineering re study of potable water assessment at Plant No. 1 2. Authorize negotiations with Camp, Dresser& McGee for support services re 66kV Substation at Plant No. 1, Job No. P1-97 3. Authorize negotiations with Malcolm Pimie, Inc. for support services re Coast Trunk Sewer Rehabilitation, Contract No. 11-26 4. Award contract for Newport Avenue and IN Street Sewer Reconstruction, Job No. FE05-36 5. Approve budget increase, change order and closeout re Contract Nos. 5-51 and 5-52 6. Approve reimbursement agreement with City of Fountain Valley re 1-10 and 1-2-4 7. Approve amendments to Cooperative Projects Grant agreements with Garden Grove and Buena Park Book Page 16 8. FY06/07 Strategic Initiatives Local Sewer Services Report and recommendations Administration Committee: 1. Selection of new liquidity provider 2. Issuance of Certificates of Participation - $300 million 3. Selection of Bond Counsel 4. Succession Management Update PRIOR COMMITTEE ACTION N/A ADDITIONAL INFORMATION N/A x.wedq.imtL.w.q caeezoo�mon�ee gcyuu d ux�u cmmv...aoc n....a. +xmr Page 2 Book Page 17 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