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 ��
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(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
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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
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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
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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
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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.
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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.
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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;
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(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.
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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
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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