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HomeMy WebLinkAbout2008-06 Ops MINUTES OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Technical Services Orange County Sanitation District June 12, 2008-5:00 p.m. A meeting of the Operations Committee of the Orange County Sanitation District was held on June 12, 2008, at 5:00 p.m. in the Sanitation District's Administrative Office. (2) ROLL CALL Following the Pledge of Allegiance, a quorum was declared present, as follows: Operations Directors Present: Staff Present: Larry Crandall, Chair Jim Ruth, General Manager Ken Parker, Vice Chair Bob Ghirelli, Assistant General Manager Charles Antos Nick Arhontes, Dir. of Operations& Maintenance Don Bankhead Jim Herberg, Director of Engineering James Gomez Ed Torres, Director of Technical Services Patsy Marshall Lorenzo Tyner, Director of Finance and Roy Moore Administrative Services David Shawver Lilia Kovac, Committee Secretary Harry Sidhu Tod Haynes, Engineering Manager Constance Underhill Matt Smith, Engineering Manager Don Webb Layne Baroldi James M. Ferryman, Board Chair Carla Dillon FILED IN THE FFICE of Doug Davert, Board Vice Chair Bob Gaggle �THEE CLERKHpE FI ggppAIF Randy Kleinman ONANGE COUNTY SANI7A7loNOISRD Operations Directors Absent: Gino Rampagna Jeff Reed JUN 2 5 2008 Juanita Skillman Simon Watson /� Mike White By ` -/� Chuck Winsor Others: Brad Hogin, General Counsel Debby Chemey, IRWD (3) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (4) PUBLIC COMMENTS There were no public comments. Minutes of the Operations Committee June 12, 2008 Page 2 (6) REPORT OF THE COMMITTEE CHAIR Committee Chair Crandall reported that Chair Jim Ferryman, Vice Chair Doug Davert, and he had traveled to Sacramento to meet with legislators and leaders of the Senate and State Assembly to discuss the state budget, and the possibility of an additional Prop 218 notice to taxpayers for additional service rate increases if property tax revenues are reduced by the State. (6) REPORT OF THE GENERAL MANAGER Jim Ruth, General Manager, reported that he had attended the celebration of the Orange County Water District's 75�Anniversary. (7) CONSENT CALENDAR ITEMS a. MOVED, SECONDED, AND DULY CARRIED: Approve minutes of the May 7, 2008 Operations Committee meeting. Director Gomez abstained. b. OP08-27 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: 1)Award a contract to Jones Chemicals Inc., for the Purchase of Sodium Hypochlonte -NaOCI (Bleach) Solution, Specification No. C-2008-374BD for a unit price of$0.5331 per gallon, plus freight of $0.0600 per gallon, plus applicable sales tax for an estimated amount of $7,295,600 for the contract period August 11, 2008 through August 10, 2009, with four one-year renewal options; and 2)Approve a 10% annual cost escalation contingency. C. OP08-28 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: 1)Award a contract to Jones Chemicals Inc,for the purchase of Sodium Bisulfite Solution (NaHSO3), Specification No. C-2008-379BD for contract period August 11, 2008 through August 31, 2009 for a unit price of$0.7539 per gallon plus freight of$0.0600 per gallon, plus applicable sales tax for an estimated amount of$523,380 with four one-year renewal options; and 2)Approve a 10% annual cost escalation contingency. END OF CONSENT CALENDAR 'Minutes of the Operations Committee June 12, 2008 Page 3 (8) ACTION ITEMS a. OP08-29 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: 1) Award a sole-source contract with US Peroxide, LLC, for the application of a proprietary chemical process which uses hydrogen peroxide regenerated iron for odor and corrosion control, for the period August 1, 2008 through June 30, 2009, for the unit prices of$1.25/gallon delivered, plus tax for ferrous chloride; $1.59/gallon delivered, plus tax for hydrogen peroxide (27%); and $2.85/gallon delivered, plus tax for hydrogen peroxide (50%), for an estimated annual amount of$2,128,000. 2) Authorize a 10% unit cost escalation contingency. b. OP08-30 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: 1) approve Plans and Specifications for the Temporary Primary Sludge Diversion from Plant 1 to Plant 2, Contract No. P1-101A, on file at the office of the Clerk of the Board; 2) Receive and file bid tabulation and recommendation; 3) Reject low bid from Caliagua, Inc. as "Non Responsive" due to its failure to provide the information required under Public Contract Code §4100 at seq. in its Bid; 4)Award a construction contract to Orion Construction Corporation for Temporary Primary Sludge Diversion from Plant 1 to Plant 2, Contract No. P1-101A, for a total amount not to exceed $567,000; and, 5)Approve a contingency of$56.700 (10%). c. OP08-31 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: 1)Approve a Budget increase of$700,000 for Rehabilitation of Westside Pump Station, Contract No. 3-52, for a total budget amount of$9,540,000; 2)Approve Plans and Specifications for the Rehabilitation of Westside Pump Station, Contract No. 3-52, on file at the office of the Clerk of the Board; 3)Approve Addendum No. 1 to the plans and specifications; 4) Receive and file bid tabulation and recommendation; 5) Award a contract to Norman A. Olsson Construction Inc. for the construction of the Rehabilitation of Westside Pump Station, Contract No. 3-52, for a total amount not to exceed $5,885,000; and, 6)Approve a contingency of$294,250 (5%). Minutes of the Operations Committee June 12, 2008 Page 4 (9) INFORMATIONAL ITEMS a. OP08-32 2008-09 and 2009-10 Proposed Budget—Lorenzo Tyner Director of Finance and Administrative Services, Lorenzo Tyner, briefly presented the highlights of the proposed budget, including staffing levels, CIP expenditures, operating expenses, income, and financing of the two- year budget. b. OP08-33 EnerTech Biosolids Management Option Update Layne Baroldi, Environmental Supervisor, presented a brief overview of construction status of the biosolids processing plant, scheduled to be completed late in 2008. C. OP08-34 WERF Report on Methods for Cost-Effective Rehabilitation of Private Lateral Sewers. Director of Operations and Maintenance, Nick Arhontes, reported on the special research project completed by the Water Environment Research Foundation for cost efficiencies to the maintenance, repair and replacement of sewer laterals. Copies of the study will be distributed to the member cities and agencies in CD format, as well as the Board members. (10) DEPARTMENT HEAD REPORTS Director of Technical Services, Ed Torres, reported that the Sanitation District received an Administrative Civil Liability Complaint from the Santa Ana Regional Water Quality Control Board for the release to the short outfall during a repair activity on April 29, 2006. This item will be submitted to the June Board meeting for approval of settlement agreement. (11) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY Committee Chair Larry Crandall, thanked the committee members for the support as committee chair, and vote to the position of Board Vice Chair. Mr. Crandall also announced the appointment of Director Ken Parker as Chair of Operations Committee, and Director Bill Dalton as Operations Committee Vice Chair effective July 1, 2008. (12) CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b).(e): The Committee convened in closed session at 5:55 p.m. pursuant to Government Code Section 54956.9(b),(c). RECONVENE IN REGULAR SESSION: The Board reconvened in regular session at 6:03 p.m. Minutes of the Operations Committee June 12, 2008 Page 5 (13) ADJOURNMENT AND FUTURE MEETING DATES The Chair declared the meeting adjourned at 6:04 p.m. The next Operations Committee meeting is scheduled for Wednesday, July 2, 2008, at 5:00 p.m. Submitted by: Li Na Kovac Committee Secretary H:tdepttagends\Operations CommitteelOperations 2008\0608\061208 Oper Minetes.doax Distributed at the Operations Proposed Budget FY 08-09 and FY 09-10 Committee It- t7F June 12, 2008 Meeting Proposed Budget for FY 08-09 and FY 09-10 o�JNtr SAW,, N M6 2 90 aV� O� TANQ M EN�� Orange County Sanitation District June 12, 2008 Highlights of the Proposed Budget ♦ Budget Outlays ♦ FY 07-08 Budget = $513 million ♦ FY 08-09 Budget = $601 million ♦ FY 09-10 Budget = $467 million ♦ Revised Capital Improvement Program (CIP) ♦ 23% increase in FY 08-09 ♦ 39% decrease in FY 09-10 ♦ Increased Staffing Levels — 1°% per year, 641 and 648 FTEs ♦ Strong Financial Positioning — AAA & Aa Bond Ratings ♦ Two-Year Budget —Annual Updates Proposed Budget FY 08-09 and FY 09-10 June 12, 2008 Additional Revenue and Debt Financing are Required to Support Needed Capital Improvements Inflows: FY 08-09 FY 09-10 Fees&Charges $201 M (45%) $262 M (549/6) General Income $103 M (19%) $102 M (21%) Debt Proceeds $200 M (36%) $120 M (25%) Total Revenues $556 M $484 M Outlays: FY 08-09 FY 09-10 CIP $378 M (63%) $227 M (49%) Debt Service $ 74 M (12%) $ 84 M (18%) Treatment&Disposal $149 M (25%) $156 M (33%) Total Outlays $601 M $467 M Sources of Funds General Income $93% Fees&Charges ),...e- om$266M55%Fees&Charges$263 M Debt Proceetls 47/ $200 M 36% Debt Proceeds ' $120 M 25% FY 08-09 FY 09-10 Total: $556 Million Total: S484 Million Proposed Budget FY 08-09 and FY 09-10 June 12, 2008 Most OCSD Revenue is Related to User Fees FY 08-09 FY 09-10 General User Fees $ 192 M $ 211 M Permit User Fees $ 9 M $ 10 M Interagency Sewer Charges $ 40 M $ 22 M Capital Facilities Capacity $ 22 M $ 23 M Charges Total Fees & Charges $ 263 M $ 266 M Most Non-Fee Related Revenues Come from Property Taxes FY 08-09 FY 09-10 Property Tax $ 65 M $ 68 M Interest $ 19 M $ 19 M Other $ 9 M $ 11 M Total Non-Fee Related Revenue $ 93 M $ 98 M Proposed Budget FY 08-09 and FY 09-10 June 12, 2008 Outlays Decrease of Over $100 Million in FY 09-10 Due to Reductions in CIP FY 08-09 FY 09-10 CIP $ 378 M (63%) $ 227 M (49%) Debt Service $ 75 M (i2%) $ 84 M (18%) Treatment and Disposal $ 148 M (25r) $ 156 M (33%) Total Outlays $601 M $ 467 M Proposed Budget FY 08-09 and FY 09-10 June 12, 2008 The Capital Improvement Program Can Be Divided into Four Distinct Areas FY 08-09 FY 09-10 1. Secondary Treatment $ 170 M $ 92 M 2. Replacement/ Rehabilitation $ 122 M $ 100 M 3. Additional Capacity $ 67 M $ 27 M 4. Support $ 15 M $ 10 M `Total $ 374 M $ 229 M Excludes Infra-District Joint Equity Purchase(Sale). More Than $148 Million is Allocated to Treatment and Disposal Expenses FY 08-09 FY 09-10 CIP $ 378 M (63%) $ 227 M (49%) Debt Service $ 75 M (12%) $ 84 M (in.) Treatment and Disposal $ 148 M ps%) $ 156 M (33 0) Total Expenditures $ 601 M $ 467 M Proposed Budget FY 08-09 and FY 09-10 June 12, 2008 Total Treatment and Disposal Expenses Increase $23 Million from FY07-08 to FY09-10 + 12eo + sea $149 M $156 M S133 M I FY 07-08 FY 08-09 FY 09-10 Projected Proposed Proposed Total Operating Costs Will Increase an Average of 8.8% from $131 to $154 Over 2 Years Revised Expenses by Category Budget PrOlecred Proposed Proposed (Operating Costs Only,$Millions) FY 01-00 FY 07-08 FY 00-09 FYO?1U Satan"and eenefds $ 79.9 $ 79.4 $ 83.8 $ 9D.0 Contractual Services 21.4 19.9 28.5 28.9 Operating Expenses 23.1 17.8 22.4 23.7 Repairs and Maintenance 10.3 10.7 11.3 10.1 Utilities 9.9 8.4 9.7 10.2 Professional Services 3.7 2.8 3.8 2.9 Other Materials,Supplies add Services 3.7 2.9 2.6 2.8 Trainings and Meetings 1.5 1.3 1.4 1.4 Research and Monitoring 1.6 1.1 1.4 1.4 Administrative Expenses 1.5 1.4 1.3 1.3 Printing and Publications OJ 0.6 0.7 0.7 Capital Grants to Member Agencies 2.5 2.4 0.3 2A Cost Allocation (19.8) (17.7) (20.5) (21.5) Total OperNng Expeneea f/40.0 $131.0 $146.7 $164.0 Proposed Budget FY 08-09 and FY 09-10 June 12, 2008 The Majority of the Expenditure Increase Will Occur in Three Categories Category FY 08-09 FY 09- 210 1. Salaries and Benefits $ 4.4 M $ 6.1 M 2. Contractual Services $ 8.6 M $ 0.4 M a. Operating Expenses $ 4.6 M $ 1.4 M Existing Collective Bargaining Agreements and a 1% Increase in Staffing Will Increase Salaries and Benefit Costs FY 08-09 FY 09-10 Wages + $ 2.4M + $ 4.0M Benefits + $ 2.0 M + $ 2.1 M Total Salaries + $ 4.4 M + $6.1 M & Benefits Proposed Budget FY 08-09 and FY 09-10 June 12, 2008 Biosolids Hauling Costs Continue to Rise Increasing Contractual Services Budget FY 08-09 FY 09-10 Solids Removal +$ 5.6 M + $ 1.9 M Other Waste Disposal +$ 2.7 M < $ 1.5 M > Other +$ 0.3 M — Total Contractual Services +$ 8.6 M + $ 0.4 M Costs of Chemicals Required to Treat Effluent to Current Levels Continue to Increase FY 08-09 FY 09-10 Chemicals + $ 3.3 M +$ 0.4 M (includes disinfection&odor control) Chemical Coagulants +$ 1.2 M + $ 0.9 M Other +$ 0.1 M + $ 0.1 M Total Operating + $ 4.6 M + $ 1.4 M Expenses STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2. 1 hereby certify that the Notice and Agenda for the Operations Committee Meeting of Orange County Sanitation District to be held on June 12, 2008, was duly posted for public inspection in the main lobby of the Districts' offices on June 5, 2008. IN WITNESS WHEREOF, I have hereunto set my hand this 51h day of June 2008. Life Kovac, Committee Secretary Orange County Sanitation District HADEPTIAGENMOPERATIONS COMMITTEE\AGENDA CERTIFICATION.DOC ORANGE COUNTY SANITATION DISTRICT NOTICE OF MEETING 1114;6�P411 OPERATIONS COMMITTEE lit<1!3Falx35r w.a,.atw.nn: Engineering, Operations & Maintenance, and Technical Services .1fim same: PO a.SW7 I zn s,z ORANGE COUNTY SANITATION DISTRICT street etlareve: unaaa 616nwnua THURSDAY, JUNE 12, 2008 — 5:00 P.M. Fv.Win Valfa' ( 827nB m,a Wa&ar DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE creme FOUNTAIN VALLEY, CALIFORNIA 92708 Anahe,m www.ocsd.com L11Hna IkM L}laeaa F.wnm:n Uilley fvlrarhal ea,a:n;n The regular meeting of the Operations Committee of the Orange County wta;n,nel "v.a Sanitation District will be held at the above location, date and time. 1 a Hd(pi3 I9 Pal:na Ida aan,iu:a lu,wµ n Haacn (11N1(iF saga a Fga A a ld S l Baann 9 arn:n." u tin ills Pa,a Ylr(ra (tNC3 Ctaety 0 Cdeage Idaltary Dietriate 1L .'M. Mnf:va'r lla, Water Diatom. L�nnn Harw;i To maintain aworlbaless leadership in wastewater and water resource management. OPERATIONS COMMITTEE MEETING DATES OPERATIONS COMMITTEE BOARD MEETING DATE MEETING DATE O6/12/08** 06/25/08 07/02/08 07/23/08 AUGUST DARK 08/27/08 09/03/08 09/17/08* 10/01/08 10/22/08 11/06/08 11/19/08* 12/03/08 12/17/08* JANUARY DARK 01/28/09 02/04/09 02/25/09 03/04/09 03/25/09 04/01/09 04/22/09 05/06/09 05/27/09 O6/03/09 06/24/09 *Meetings are being held on the third Wednesday of the month. *"Meeting scheduled to the second Thursday of the month due to conflict with League of Cities. ROLL CALL OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Technical Services Meeting Date: June 12, 2008 Time: 5:00 p.m. Adjourn: COMMITTEE MEMBERS 03) Larry Crandall Chair Ken Parker Vice Chair Charles Antos Don Bankhead Rose Espinoza Patsy Marshall Roy Moore David Shawver Harry Sidhu Constance Underhill Don Webb James M. Ferryman Board Chair Doug Davert Board Vice Chair OTHERS Brad Ho in, General Counsel STAFF Jim Ruth, General Manager Bob Ghirelli, Assistant General Manager Nick Arhontes, Dir. of Operations & Maintenance Jim Ha , Director of Engineering Ed Torres, Director of Technical Services Lorenzo Tyner, Director of Finance and Administrative Services Lilia Kovac, Committee Secretary Tod Haynes John Linder Matt Smith H]dephagendal0perations CommiffmQperations 2"W"T2.Roll CalLdw AGENDA REGULAR MEETING OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Technical Services ORANGE COUNTY SANITATION DISTRICT June 12, 2008 - 5:00 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California 92708 www.ocsd.com (1) PLEDGE OF ALLEGIANCE (2) DECLARATION OF QUORUM (3) APPOINTMENT OF CHAIR PRO TEM IF NECESSARY (4) PUBLIC COMMENTS (5) REPORT OF COMMITTEE CHAIR (6) REPORT OF GENERAL MANAGER (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 May 7, 2008 Operations Committee meeting. b. OP08-27 Recommend to the Board of Directors to: 1)Award a contract to Jones Chemicals Inc., for the Purchase of Sodium Hypochlorite-NaOCI (Bleach) Solution, Specification No. C-2008-374BD for a unit price of$0.5331 per gallon, plus freight of$0.0600 per gallon, plus applicable sales tax for an estimated amount of$7,295,600 for the contract period August 11, 2008 through August 10, 2009, with four one-year renewal options; and 2)Approve a 10% annual cost escalation contingency. (Book Page 12) Book Page I Operations Committee 06/12/08 Page 2 C. OP08-28 Recommend to the Board of Directors to: 1)Award a contract to Jones Chemicals Inc, for the purchase of Sodium Bisulfte Solution (NaHSO;), Specification No. C-2008-379BD for contract period August 11, 2008 through August 31, 2009 for a unit price of$0.7539 per gallon plus freight of$0.0600 per gallon, plus applicable sales tax for an estimated amount of$523,380 with four one-year renewal options; and 2) Approve a 10%annual cost escalation contingency. (Book Page 13) END OF CONSENT CALENDAR d. Consideration of items deleted from Consent Calendar, 0 any. (8) ACTION ITEMS a. OPOB-29 Recommend to the Board of Directors to: 1) Award a sole-source contract with US Peroxide, LLC, for the application of a proprietary chemical process which uses hydrogen peroxide regenerated iron for odor and corrosion control,for the period August 1, 2008 through June 30, 2009,for the unit prices of$1.25/gallon delivered, plus tax for ferrous chloride; $1.59/gallon delivered, plus tax for hydrogen peroxide(27%); and $2.85/gallon delivered, plus tax for hydrogen peroxide(50%), for an estimated annual amount of$2,128,000. 2)Authorize a 10% unit cost escalation contingency. (Book Page 14) b. OP08-30 Recommend to the Board of Directors to: 1) approve Plans and Specifications for the Temporary Primary Sludge Diversion from Plant 1 to Plant 2, Contract No. P1-101A, on file at the office of the Clerk of the Board; 2) Receive and file bid tabulation and recommendation; 3) Reject low bid from Caliagua, Inc. as"Non Responsive" due to its failure to provide the information required under Public Contract Code§4100 at seq. in its Bid; 4)Award a construction contract to Orion Construction Corporation for Temporary Primary Sludge Diversion from Plant 1 to Plant 2, Contract No. P1-101A, for a total amount not to exceed $567,000; and, 5)Approve a contingency of$56,700 (10%). (Book Page 16) Book Page 2 Operations Committee O6/12/08 Page 3 c. OPOB-31 Recommend to the Board of Directors to: 1)Approve a Budget increase of $700,000 for Rehabilitation of Westside Pump Station, Contract No. 3-52, for a total budget amount of$9,540,000; 2)Approve Plans and Specifications for the Rehabilitation of Westside Pump Station, Contract No. 3-52, on file at the office of the Clerk of the Board; 3)Approve Addendum No. 1 to the plans and specifications; 4) Receive and file bid tabulation and recommendation; 5)Award a contract to Norman A. Olsson Construction Inc.for the construction of the Rehabilitation of Westside Pump Station, Contract No. 3-52, for a total amount not to exceed $5,885,000; and, 6)Approve a contingency of$294,250 (5%). (Book Page 18) (9) INFORMATIONAL ITEMS a. OP08-32 2008-09 and 2009-10 Proposed Budget— Lorenzo Tyner (Book Page 20) b. OP08-33 EnerTech Biosolids Management Option Update (Book Page 21) C. OP08-34 WERF Report on Methods for Cost-Effective Rehabilitation of Private Lateral Sewers (Book Page 23) (10) DEPARTMENT HEAD REPORTS (11) OTHER BUSINESS, COMMUNICATIONS, SUPPLEMENTAL AGENDA ITEMS, OR ITEMS FOR FUTURE AGENDAS, IF ANY (12) CLOSED SESSION ...... .................................. .. ............................................. ............... .......... .ng. ... ............ .e., �During the course of contlucting the business set forth on this agenda as a regular meeting of the Committee,the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential lifigaton, 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) !employee actions or negotiations with employee representatives; or which are exempt from public disclosure (under the California Public Records Act, may be reviewed by the Committee during a permitted closed session land are not available for public inspection. At such time as the Committee takes final actions on any of these ;subjects,.the.minutes will reflect all required,dlsdosures,of irNormetlonc_.............................................................................................-....__......' Book Page 3 Operations Committee O6/12/08 Page 4 a. Convene in closed session. CONFERENCE WITH LEGAL COUNSEL RE. ANTICIPATED LITIGATION/ INITIATION OF LITIGATION (Government Code Section 54958.9(b),(c)) Significant Exposure to Litigation/Possible Initiation of Litigation by the District Number of Potential Cases: 1 — Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4 b. Reconvene in regular session. C. Consideration of action, if any, on matters considered in closed session. (13) ADJOURNMENT-The next Operations Committee meeting is scheduled for Wednesday, July 2, 2008, at 5:00 p.m. Book Page 4 Operations Committee 06/12/08 Page 5 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 Operations Committee on speck 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 Adiournment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955(posted within 24 hours). Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair-accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District 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 Secretary ten days in advance of the Committee meeting. ;Committee Chair Larry Crandall (714)593-4400 slcrandall(f),aol.com ;Committee Secretary: Lllia Kovac (714)593-7124 Ikovac(glocsd.com ;General Manager Jim Ruth (714)593-7110 irulhAocsd.com .Assistant General Manager Bob Ghirelli (714)593-7400 rohirelliAmad.com ;Director of Technical Services Ed Tortes (714)593-7080 etomes0ocsd.com .Director of Engineering Jim Herberg (714)593-7300 iherbergCC6- sd.com Dir.of Operations and Maintenance Nick Arhontes (714)593-7210 namontesOmsd.com Book Page 5 Operations Committee Rolling Agenda Report Calendar Action or Date Dept. Description of Report Information July Eng Approve PCSA with Black&Veatch re Newport Trunk Action Sewer and Force Mains, Job No. 5-58 July TS I Kings County Property Sale Action Kwepragendel0perauoes commaleeloperawns 200MOGNIN.Rolling Agenda.dw Book Page 6 MINUTES OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Technical Services Orange County Sanitation District May 7, 2008—5:00 p.m. A meeting of the Operations Committee of the Orange County Sanitation District was held on May 7, 2008, at 5:00 p.m. in the Sanitation District's Administrative Office. (2) ROLL CALL Following the Pledge of Allegiance, a quorum was declared present, as follows: Operations Directors Present: Staff Present: Larry Crandall, Chair Jim Ruth, General Manager Ken Parker, Vice Chair Bob Ghirelli,Assistant General Manager Charles Antos Nick Arhontes, Dir. of Operations &Maintenance Don Bankhead Jim Herberg, Director of Engineering Leslie Daigle Ed Torres, Director of Technical Services Rose Espinoza Lorenzo Tyner, Director of Finance and Patsy Marshall Administrative Services Roy Moore Life Kovac, Committee Secretary David Shawver Tod Haynes, Engineering Manager Harry Sidhu John Linder, Engineering Manager Constance Underhill Matt Smith, Engineering Manager James M. Ferryman, Board Chair Layne Baroldi Doug Davert, Board Vice Chair Carla Dillon Dave Heinz Operations Directors Absent: Vlad Kogan Simon Watson Chuck Winsor Others: (3) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (4) PUBLIC COMMENTS There were no public comments. Book Page 7 Minutes of the Operations Committee May 7, 2008 Page 2 (6) REPORT OF THE COMMITTEE CHAIR Chair Crandall reported that General Manager, Jim Ruth, had been awarded the Greater Los Angeles Federal Executive Board Leadership Award at the annual Public Service Recognition Week ceremony held May 7, 2008 in Long Beach. (6) REPORT OF THE GENERAL MANAGER Jim Ruth, General Manager, did not give a report. (7) CONSENT CALENDAR ITEMS a. MOVED, SECONDED,AND DULY CARRIED: Approve minutes of the April 2, 2008 Operations Committee meeting. b. Item pulled for discussion- C. OP08-18 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: 1)Approve Change order No. 5 to the contract issued to Hill Brothers Chemical Company for the Purchase of Magnesium Hydroxide, Specification No. C-2005-244, authorizing a unit rate increase of$0.20 per gallon, for a total unit price of$1.84 per gallon, plus applicable sales tax for a one-year period effective July 1, 2008 through June 30, 2009, and all other terms of the contract shall remain in effect (P.O. 102362 OB). 2)Authorize a 10% unit cost escalation contingency. d. Item pulled for discussion e. OP08-20 MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to: 1)Award a contract to Olin Chlor Alkali Products,for the Purchase of Sodium Hydroxide (Caustic Soda) 25% solution, Specification No. C-2008-371 BD, for delivery to the plants for the period July 1, 2008 through June 30, 2009, for a unit price of$459.90 per dry ton plus freight of$200.00 per dry ton, plus applicable sales tax for an estimated annual amount of$431,235.00, with four one-year renewal options; and, 2)Authorize a 10% annual cost escalation contingency. 3)Award a contract to Basic Chemical Solution, LLC, for the Purchase of Sodium Hydroxide(Caustic Soda) 50% solution, Specification No. C-2008-371 BD, for delivery in the collection system,for the period July 1, 2008 through June 30, 2009, for a unit price of$539.00 per dry ton, subject to the Harriman Chemsult Limited Index, plus freight of$39.48 per dry ton, plus applicable sales tax for an estimated annual amount of $235,075.00 with four one-year renewal; and, Book Page 8 Minutes of the Operations Committee May 7, 2008 Page 3 4)Authorize an 8%quarterly cost escalation contingency. f. OP08-21 MOVED, SECONDED,AND DULY CARRIED: Approve Amendment No. 1 to Cooperative Projects Grants Program Contract No. 0604 with Midway City Sanitary District, providing for an 11-month time extension. g. OP08-22 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: 1)Approve a budget increase of$128,100 for Rehabilitation of District Siphons, Contract No. 2-68, for a total budget of $7,854,100; and, 2)Approve a contingency increase of$136,108 (3%)to the construction contract with Ken Thompson, Inc., for Rehabilitation of District Siphons, Contract No. 2-68, for a total contingency of$363,008 (80k). END OF CONSENT CALENDA b. OP08-17 Director of Technical Services, Ed Torres, answered questions that arose from the report, and will be clarifying prior to sending to the Board of Directors for approval. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to authorize the General Manager to sell surplus emission reduction credits via negotiated contracts with ICAP United, Inc. and Cantor CO2e, LP, in a form approved by General Counsel. d. OPOB-19 Director of Operations and Maintenance, Nick Arhontes, announced clerical corrections to the report, which will reflect in the report going to the Board of Directors for approval. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: 1)Authorize the General Manager to approve renewal of a contract with Neutron Products, Inc., for Purchase of Anionic Polymer, Specification No. C-2006-273, authorizing a price increase of$.15/lb, for a total price of$3.00/lb, for a one-year period effective September 1, 2008 through August 31, 2009(P.O. 102634.OB). 2)Authorize a 10%cost escalation contingency. (8) ACTION ITEMS a. OP08-23 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to approve a contingency increase of$623,114 (17%)to the Professional Design Services Agreement with Earth Tech, Inc.,for Sludge Digester Rehabilitation at Plant No. 1, Job No. P11-100, for a total contingency of$989,652 (27%). Book Page 9 Minutes of the Operations Committee May 7, 2008 Page 4 b. OP08-24 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to approve a contingency increase of$2,003,323(18%)to the Professional Design Services Agreement with HDR, Inc.for Sludge Dewatering and Odor Control at Plant No. 1, Job No. P1-101, for a total contingency of$3,116,281 (28%). C. OP08-25 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to Approve Amendment No. 8 to the Professional Services Agreement with Integrated Program Management Consultants, a joint venture of Parsons Water and Infrastructure, Inc., and CH2M Hill, Inc., for Program Management Services for the Capital Improvement Program authorizing: 1) Establish an amount not to exceed $16,987,271 for year seven (Fiscal Year 2008/09)of the ten-year contract; and, 2) Increase the total amount of the ten-year contract to an amount not to exceed $93,077,246. (9) INFORMATIONAL ITEMS a. OP08-26 FY07/08 Budget Update Director of Finance and Administrative Services, Lorenzo Tyner, presented a brief overview of the two-year budget, highlighting the revised Capital Improvement Program, the planned staffing levels, and the Sanitation District's financial position. It was also noted that State budget proposals may include a loss of state funding to special districts. (10) DEPARTMENT HEAD REPORTS Assistant General Manager, Bob Ghirelli, reported that staff would be hosting Director Marshall, Buena Park city council members and city staff to a plant tour of the OCSD facilities, the Groundwater Replenishment System, and CIP projects in progress. Staff extended an invitation to all cities to join the tour. Director of Operations and Maintenance, Nick Arhontes, introduced Dave Heinz, Treatment Plant Operations Manager, who briefly presented an overview of two recent emergency repairs on pipeline issues and Its complexities. (11) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY Committee Chair Larry Crandall, announced there would be a construction progress tour of the Ellis Pump Station at 4:30 p.m. on Thursday, June 121°. Book Page 10 Minutes of the Operations Committee May 7, 2008 Page 5 (12) CLOSED SESSION There was no closed session. (13) ADJOURNMENT AND FUTURE MEETING DATES The Chair declared the meeting adjourned at 6:08 p.m. The next Operations Committee meeting is scheduled for Thursday, June 12, 2008, at 5:00 p.m. Submitted by: Lilia Kovac Committee Secretary H:1depMgendM0pemfions Committee\Opembons 200a105=050708 Oper Mlnules.dwx Book Page I I OPERATIONS COMMITTEE Mee ang one T.ea.groo-. ow ,08 wvzs/a8 AGENDA REPORT Rem Number item Number OP087 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director of Operations and Maintenance SUBJECT: CONTRACT FOR SODIUM HYPOCHLORITE (BLEACH), SPECIFICATION NO. C-2008-374BD GENERAL MANAGER'S RECOMMENDATION 1. Award a contract to Jones Chemicals Inc., for the Purchase of Sodium Hypochlorite- NaOCI (Bleach) Solution, Specification No. C-2008-374BD for a unit price of$0.5331 per gallon, plus freight of$0.0600 per gallon, plus applicable sales tax for an estimated amount of$7,295,600 for the contract period August 11, 2008 through August 10, 2009, with four one-year renewal options; and 2. Approve a 10% annual cost escalation contingency. SUMMARY • Bleach has historically been used in the treatment plants for odor control, plant water disinfection, and process control in secondary treatment. • The Regional Board concurred with the District to begin ocean outfall bacteria reduction/disinfection in August 2002, which required large increases in the volume of bleach chemical used. The outfall disinfection program is managed to comply with all applicable California Ocean Plan requirements for water quality protection. Bleach for bacteria reduction accounts for 98%of the current bleach usage. • Two bids were received with the lowest responsive and responsible bidder being Jones Chemicals Inc. PRIOR COMMITTEE/BOARD ACTIONS None ADDITIONAL INFORMATION This complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted in Division 830 and 840, line items 53, 57, and 58. Award Dale: June 2008 Contract Amount:$0.5331/gal+freight$0.08/gal+tax Contingency: 10%annual Hmepmoend,norerations Committee\Operatlom 20WW60BW8-27.C-2008-374BD(Bleach).doc Fa No.Gv-IMO 69Y Ce Page 1 Book Page 12 OPERATIONS COMMITTEE Meeting Dae TO BG.or Dir. 06/32/l18 06/25/OB AGENDA REPORT Item Number Item Number OP08-29 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director of Operations and Maintenance SUBJECT: CONTRACT FOR SODIUM BISULFITE, SPECIFICATION NO. C-2008-379BD GENERAL MANAGER'S RECOMMENDATION 1. Award a contract to Jones Chemicals Inc, for the purchase of Sodium Bisulfite Solution (NaHS03), Specification No. C-2008-379BD for contract period August 11, 2008 through August 31, 2009 for a unit price of$0.7539 per gallon plus freight of$0.0600 per gallon, plus applicable sales tax for an estimated amount of$523,380 with four one-year renewal options; and 2. Approve a 10% annual cost escalation contingency. SUMMARY • Following disinfection with bleach (sodium hypochlorite), sodium bisulfite is used to dechlorinate the final effluent to meet the effluent residual chlorine limitations specified in the District's National Pollutant Discharge Elimination System (NPDES) permit. • Two bids were received with the lowest responsive and responsible bidder being Jones Chemicals, Inc. PRIOR COMMITTEE/BOARD ACTIONS June 2002 Board Item 18(b) Specification No. C-2002-102BD ADDITIONAL INFORMATION This complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted for Div. 830 and 840 in Operating Budget line items 59. Award Date: June 2008 Contract Amount: $0 7539/gal +In.$0 06/gal +tax Contingency. 10% annual H:WeptWgenda%0 m eons Commitlee\Operations 2009M08W-28c-2000-37980.d. Page 1 Book Page 13 OPERATIONS COMMITTEE Meel"Date Toed.ofDir. 061,2108 061 SiOB AGENDA REPORT Item Number Item Number OPoB-29 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director of Operations and Maintenance SUBJECT: TRUNKLINE ODOR AND CORROSION CONTROL IN THE COLLECTION SYSTEM GENERAL MANAGER'S RECOMMENDATION 1. Award a sole-source contract with US Peroxide, LLC, for the application of a proprietary chemical process which uses hydrogen peroxide regenerated iron for odor and corrosion control, for the period August 1, 2008 through June 30, 2009, for the unit prices of$1.25/gallon delivered, plus tax for ferrous chloride; $1.59/gallon delivered, plus tax for hydrogen peroxide (27%); $2.85/gallon delivered, plus tax for hydrogen peroxide (50%); for an estimated annual amount of$2,128,000. 2. Authorize a 10% unit cost escalation contingency. SUMMARY • This contract provides for continuous treatment with peroxide regenerated iron for sulfide control (PRI-SC), which is composed of ferrous chloride and hydrogen peroxide, or each of the chemicals alone to control odor and corrosion control in the regional trunk sewer system. • In addition, the contractor provides leased equipment and on-going labor for services such as maintenance, remote monitoring of the chemical and feed rates, optimization, and field sampling. • The PRI-SC treatment has been utilized in the regional trunk system since 2002 with the hydrogen peroxide portion at 50% concentration- Most recently OCSD has been utilizing solely ferrous chloride. • In anticipation of the next contract period, staff will prepare a Request for Proposal (RFP) for early 2009. Results from the PRI-SC test on the Baker Main trunk will be considered in preparing the RFP. 5121108 Book Page 14 • The District continually evaluates the most cost effective treatment for odor control based on changing costs and conditions. OCSD staff in conjunction with the contractor plan to re-evaluate PRI-SC on the Baker-Main trunk in Costa Mesa to determine its feasibility and effectiveness with a new hydrogen peroxide dosing location. Due to changing regulations and security concerns, the concentration of the hydrogen peroxide will be reduced to 27%. The Baker-Main Trunk System is used to transport concentrated sludges produced at Irvine Ranch Water District's facilities which are then processed at OCSD. • Treatment in the regional trunks provides a secondary benefit of controlling hydrogen sulfide and odors entering the treatment plants. Newly designed capital projects at the treatment plants have been designed based on continuous chemical treatment for odor control in the regional trunks. PRIOR COMMITTEEIBOARD ACTIONS Approved sole-source contract with US Peroxide, LLC on June 25, 2003, item 14(e) ADDITIONAL INFORMATION This sole source must be approved by the Board of Directors as required by OCSD Delegation of Authority (DOA) and complies with DOA authority levels. This item has been budgeted in Divisions 420, 830, and 840, line item 55. Award Date: 6/25/03 Contract Amount: $1.15/gal. +tax(FeC12) Contingency: $1.85/gal. +tax(50% H2O2) Award Date: 6125108 Contract Amount: $1.25/gal. +tax(FeC12) Contingency: 10%annual $1.59/gal. +tax(27%H2O2) $2.85/gal. +tax(50%H2O2) H:\dept\agenda\Operations Committee\Operations 2008\0608\08-29.Trunkine 060T docx 5/21MB Book Page 15 OPERATIONS COMMITTEE Meeting Date To Bd.of De. 06113/DB 06/25/08 AGENDA REPORT ItemPOB Number30 Item Number O Orange County sanitation District Solids Digestion np a lids Needling FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Gino Rapagna SUBJECT: TEMPORARY PRIMARY SLUDGE DIVERSION FROM PLANT 1 TO PLANT 2, CONTRACT NO. P1-101A GENERAL MANAGER'S RECOMMENDATION 1. Approve Plans and Specifications for the Temporary Primary Sludge Diversion from Plant 1 to Plant 2, Contract No. P1-101A, on file at the office of the Clerk of the Board; 2. Receive and file bid tabulation and recommendation; 3. Reject low bid from Caliagua, Inc. as "Non Responsive" due to its failure to provide the information required under Public Contract Code §4100 at seq. in its Bid; 4. Award a construction contract to Orion Construction Corporation for Temporary Primary Sludge Diversion from Plant 1 to Plant 2, Contract No. P1-101A, for a total amount not to exceed $567,000; and, 5. Approve a contingency of$56,700 (10%). SUMMARY • This project will construct facilities at Plant No. 1 to enable diversion of primary sludge and belt press filtrate from Plant No. 1 to Plant No. 2 via the Interplant Pipeline. These temporary facilities are to enable better management of sludge and filtrate during the period between start-up of Ellis Avenue Pump Station and start-up of the proposed sludge thickening and dewatering facilities at Plant No. 1. • HDR Engineering, Inc./Black & Veatch Corporation completed the plans and specifications for Contract No. PI-101A in March 2008. Six sealed bids were received on April 16, 2008. Summary information on the bid opening for Contract No. PIA 01A is as follows: Page 1 Book Page 16 Project Budget $ 143,547,000 Construction Contract Budget (P1-101A) $ 500,000 Engineer's Estimate $ 450,000 Lowest Responsive, Responsible Bid: $ 567,000 High Bid: $ 926,553 HDR/Black &Veatch Corporation completed their Construction Cost Opinion in February 2008. The lowest Responsible Responsive bid was higher than the Engineer's Estimate by $117,000. The specific cause of the difference appears to be spread over several areas. PRIOR COMMITfEEIBOARD ACTIONS May 2005—Approval of Professional Design Services Agreement with HDR Engineering, Inc. for an amount not to exceed $11,129,575. ADDITIONAL INFORMATION The facilities constructed by this project are only necessary for operation until proposed Plant 1 sludge thickening and dewatering facilities are commissioned in 2012. The project will mitigate the short-term capacity deficiency of sludge treatment facilities at Plant No. 1, during the period between start-up of Ellis Avenue Pump Station and start-up of the new sludge thickening and dewatering facilities. The capacity deficiencies are due to increased loadings from wastewater diverted to Plant No. 1 through Ellis Avenue Pump Station. Contract No. P1-101A is part of Job No. P1-101, Sludge Dewatering and Odor Control at Plant 1; Job No. P1-101 contains sufficient budget for construction of Contract No. P1-101A; therefore, no additional budget is being requested. The contractor selection was conducted in accordance with the Sanitation District's adopted policies and procedures. The low bidder was declared nonresponsive due to not providing required information and documentation with their bid. Bidder Amount of Bid Caliagua, Inc. $ 497,000 Orion Construction Corp. $ 567,000 Marine Technical Service $ 686,070 Mike Bubalo Const. $ 847,550 MNR Construction $ 875,302 J.R. Filanc $ 926,553 This item has been budgeted (Page A-8, Item No. 52). Award Date: 06/12/08 Contract Amount: $567,000 Contingency: $56,700(10 b) JH:GR:ha:tic:gc H:klepMgenda\Operations Comminee\Operations 2008\0608T1-101A.doo Page 2 Book Page 17 OPERATIONS COMMITTEE meeting Date ro aA.or Ds. oli/wo9 osizslos AGENDA REPORT Item Number Item Number OPaa-31 Orange County Sanitation District collections = facilities FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Alberto Acevedo SUBJECT: REHABILITATION OF WESTSIDE PUMP STATION, CONTRACT NO. 3-52 GENERAL MANAGER'S RECOMMENDATION 1. Approve a Budget increase of$700,000 for Rehabilitation of Westside Pump Station, Contract No. 3-52, for a total budget amount of$9,540,000; 2. Approve Plans and Specifications for the Rehabilitation of Westside Pump Station, Contract No. 3-52, on file at the office of the Clerk of the Board; 3. Approve Addendum No. 1 to the plans and specifications; 4. Receive and file bid tabulation and recommendation; 5. Award a contract to Norman A. Olsson Construction Inc. for the construction of the Rehabilitation of Westside Pump Station, Contract No. 3-52, for a total amount not to exceed $5,885,000; and, 6. Approve a contingency of$294,250 (5%). SUMMARY • This project will rehabilitate Westside Pump Station. The rehabilitation includes the design and construction of mechanical, electrical, instrumentation and controls, structural, landscape, and architectural improvements to bring the facility into compliance with Orange County Sanitation District (Sanitation District) Standards. • PBS&J completed the plans and specifications for Rehabilitation of Westside Pump Station, Contract No. 3-52, on November 2007. Three sealed bids were received on April 15, 2008. After the evaluation of the three bids by Sanitation District Evaluation Team, all bids were determined to be "Responsible and Responsive." Summary information on the bid opening for Rehabilitation of Westside Pump Station, Contract No. 3-52, is as follows: Page 1 Book Page 18 Project Budget $ 8,840,000 Construction Contract Budget $ 5,200,000 Engineer's Estimate $ 5,164,791 Lowest Responsive, Responsible Bid: $ 5,885,000 High Bid: $ 7,067,422 PBSU completed their Construction Cost Opinion on November 2007. PBSU cost estimate was for $5,164,791 at the time. During the evaluation of the bids, staff found that the difference between the Engineers Estimate and the lowest Responsible Responsive bid was mostly concentrated on the following bid items: installation and operation of the by-pass pumping system; sheeting and shoring activities; installation of a steel mezzanine; dewatering activities; and the installation of new pumping equipment. PRIOR COMMITTEEIBOARD ACTIONS • February 2008 —Approval of Amendment No. 1 to the Professional Services Agreement with PBSW Inc. providing for construction support services for Rehabilitation of Westside Pump Station, Contract No. 3-52. • March 2007 —Authorization to staff to commence negotiations with PBSU Inc. for support services during the construction, commissioning, and close out phases of Contract No. 3-52. • February 2007—Approval of a Construction Contract Budget increase of$440,000 for Rehabilitation of Westside Pump Station, Contract No. 3-52, for a total budget amount of$8,731,000. • August 2004—Approval of Professional Design Services Agreement with PBSW Inc. for the Rehabilitation of Westside Pump Station, Contract No. 3-52, for an amount not to exceed $1,164,721. ADDITIONAL INFORMATION The contractor selection was conducted in accordance with the Sanitation District's adopted policies and procedures. This item has been budgeted (Page A-6, Item No. 11). Award Date: 06/25108 Contract Amount: $5,885,000 'Contingency: $294,250(5%) JH:AA:tic:gc H:WepMgendaQwrations Committee\Operations 2008W60813-52.dwx Page 2 Book Page 19 OPERATIONS COMMITTEE RZ7-9. DDate Tom.oroo-. 06/12/0a AGENDA REPORT I.I&DNDDE2 r� N yg Orange County Sanitation Mstnct oeoe sz FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PROPOSED FY 2008-09 and 2009-10 OPERATING, CAPITAL, DEBT/COP SERVICE, SELF-INSURANCE BUDGETS AND OTHER REQUIREMENTS BUDGET GENERAL MANAGER'S RECOMMENDATION Information item only. The following recommendation will be submitted through the Administration Committee: Approve proposed Operating, Capital, DebUCOP Service and Self-Insurance Budgets for FY 2008-09 and 2009-10 as follows: 2008-09 2009-10 Net Operations, Maintenance&Working Capital $146,771,180 $154,038,030 Worker's Compensation Self Insurance 490,000 535,000 General Liability and Property Self-Insurance 1,506,200 1,606,200 Net Capital Improvement Program 373,657,000 228,907,000 Debt/COP Service 74,623,000 84,297,030 Intra-District Joint Equity Purchase/Sale 3,961,700 (2,099,300) TOTAL $601.009.080 $467.283 960 SUMMARY The FY 2008-09 and 2009-10 Proposed Budget is enclosed for the Committee's consideration. The Budget has been presented to the Operations Committee at the regular June meeting in order to allow each Standing Committee an opportunity to review the proposal prior to the June Board meeting. Although each Committee has had an opportunity to review the proposal, it remains the responsibility of the Administration Committee to recommend approval. The Administration Committee is requested to recommend that the Board of Directors approve this budget PRIOR COMMITTEEIBOARD ACTIONS None. ADDITIONAL INFORMATION None. ATTACHMENTS 1. Proposed FY 2008-09 and 2009-10 Budget Fom No.DMI02@ R WOWOW Page 1 Book Page 20 OPERATIONS COMMITTEE Meebm;Date To Ed.ofDlr. 022/08 AGENDA REPORT Item Number Item Number OPOB-33 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Edward M. Torres, Director of Technical Services SUBJECT: EnerTech Biosolids Management Option Update GENERAL MANAGER'S RECOMMENDATION Information Item Only SUMMARY • Based on the recommendations found in OCSD's Long-Range Biosolids Management Plan (CH2MHill, December 2003), five Requests for Proposals (RFP) for various biosolids management technologies were released. • The EnerTech Environmental, Inc. (EnerTech) response to the RFP, to convert OCSD's biosolids to a renewable fuel at a Regional Biosolids Processing Facility in Rialto, California, received the highest score of the four viable proposals received. • In April 2005, the Board authorized the General Manager to enter into a long-term contract with EnerTech to manage 225 tons of OCSD's biosolids. All costs for the permitting, design and construction of the facility have been borne by EnerTech. • EnerTech's facility has been sited on land owned by the City of Rialto, adjacent to Rialto's wastewater treatment plant, and will have a capacity to process over 800 tons per day of the region's biosolids. • Construction was in full swing by Fall 2007 and they are anticipated to start taking biosolids in October 2008. • Staff will give a presentation highlighting EnerTech's construction progress. PRIOR COMMITTEE/BOARD ACTIONS • Long-Range Biosolids Management Plan received and filed in December 2003. • Contract awarded to EnerTech in April 2005. Form No.ow-mat R,1190 ovovo7 Page 1 Book Page 21 ADDITIONAL INFORMATION • In April 2006, the fuel that will be produced by EnerTech's process was certified by both the California Energy Commission and the Green Renewable Electricity Certification Program as a renewable fuel. • In September 2007, EnerTech was named runner up in the annual Wall Street Journal Technology Innovation Awards in the Environmental Category. Entries for over 800 innovations were submitted to the competition by individuals, companies, and organizations from around the world, with only 4% of entries receiving an award. Form No.ow-io R.W owtml Page 2 Book Page 22 OPERATIONS COMMITTEE Mee '8te To ad.ofDir. 08/11/08 Item AGENDA REPORT Nu mber umhe Item Number OPum Orange County Sanitation District FROM: James D. Ruth—General Manager Nick Arhontes, P.E. —Director of Operations & Maintenance SUBJECT: WERF Report on Methods for Cost-Effective Rehabilitation of Private lateral Sewers GENERAL MANAGER'S RECOMMENDATION Information only SUMMARY Until recently, there has been little guidance available to public works agencies for determining the most cost-effective inspection and rehabilitation options for sewer laterals in speck conditions. This much-needed guidance is now available as a new Water Environment Research Foundation (WERF) report on CD-ROM entitled, Methods for Cost-Effective Rehabilitation of Private Lateral Sewers(WERF stock no. 02CTS5). The report attempts to provide a clear understanding to public agencies and private property owners of the relevant financial and legal issues surrounding lateral rehabilitation. It further explains available options for inspection, evaluation, and repair, and provides a sound course of action on how to manage problems with sewer laterals in our communities. This information is especially helpful in assisting property owners and contractors in determining the best methods to analyze sewer lateral problems, and to determine the most cost-effective methods for maintenance, repair or replacement. Despite a growing awareness of the public and environmental problems related to aging laterals nationally, sewer laterals are still considered the property owner's responsibility, and inspection and rehabilitation are often delayed due to a variety of understandable reasons, mostly economic. Because most OCSD member cities and agencies do not own or maintain any portion of sewer laterals, Inflow and Infiltration (1/1) problems that cause increased flows to OCSD's treatment plants are often ignored, and property owners end up with expensive bills for lateral repairs. As a WERF member, OCSD was given permission to make copies of the CD-ROM for distribution to our member cities and agencies and will be distributed at the June 2008 Waste discharge Requirements meeting, which most cities and agencies attend. Contact Patrick McNally (pmcnelly(a)ocsd.com -714-593-7163) of the Operations and Maintenance department for assistance. For more information on this special research project, contact WERF Conveyance Systems Program Director Roy Ramani at mamani(rDwerf.ora. Form No IM2 M OIM07 Page 1 Book Page 23 PRIOR COMMITTEEIBOARD ACTIONS NIA ADDITIONAL INFORMATION The WERF lateral report summarizes offers guidance on several key topics related to private sewer laterals: • Locating, Inspecting, and Assessing Conditions of Private Sewer Laterals: There are several methods for leak-testing laterals and doing condition assessments. The data in this report are useful for providing guidance for maintenance and rehabilitation. • Quantifying Ill from Sewer Laterals: The results indicate that lateral rehabilitation can yield savings in peak flow and annual volume to the POTW in the range of 5%to more than 30%. • Inflow Removal and Rehabilitation Methods: Widespread and strong interest in Ill reduction (especially for decision makers at the POTW) has spurred the development of a variety of techniques for safe inflow source removal and lateral rehabilitation and replacement. They also indicated that costs for inflow removal were generally quite low and that the quantities of inflow removed from the sewer system were usually very significant. • Financing Issues: The responsibility for covering the cost of rehabilitation falls primarily on property owners, but the benefits that accrue to wastewater system operation, the environment, and the public provide a strong incentive for agencies and local and national governments to investigate private lateral rehabilitation programs both administratively and with public funds. This report describes possible approaches to garner financial support and encourage lateral repair programs, given the limits for the use of public funds on private property improvements (public purpose doctrine). Five OCSD satellite agencies now have lateral maintenance or rehabilitation programs. • Legal and Liability Issues: Testing and repair of private lateral sewers involves not only issues concerning access to private property, but also potential liability for personal injury or property damage resulting from such work on private property. The report explores such legal issues and provides examples of legal opinions and administrative arrangements adopted in some cities across North America. • This report can serve as a roadmap for assessing, analyzing, selecting methods, and developing such programs. This report assists by identifying legal and financial considerations up front which will make it easier for utilities to decide how to implement lateral rehabilitation within an overall wastewater system rehabilitation strategy. It is hoped that those who formulate policy recommendations (directors of public works agencies, city engineers, general managers, and so forth) will be able to present to politicians and to the public a sound course of action, including appropriate justification, for managing problems with sewer laterals in their communities. Form No.owaozx Re W 01Iaem7 Page 2 Book Page 24 ORANGE COUNT! SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: rt� P.O. Box 8127 Fountain Valley, California 92728-8127 ` Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018