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HomeMy WebLinkAbout2008-07 MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, July 23, 2008, at 5:30 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, July 23, 2008, at 5:30 p.m., in the District's Administrative Office. (1) A quorum was declared present, as follows: STEERING COMMITTEE MEMBERS: DIRECTORS PRESENT: STAFF PRESENT: Doug Davert, Board Chair Larry Crandall, Board Vice Chair Jim Ruth, General Manager Mark Waldman, Administration Committee Bob Ghirelli, Assistant General Manager Chair Nick Arhontes, Director of Operations and Ken Parker, Operations Committee Chair Maintenance Jim Ferryman, Chair Ed Torres, Director of Technical Services Don Bankhead Lorenzo Tyner, Director of Finance and Phil Luebben Administrative Services Michael Gold, Legislative Affairs Liaison DIRECTORS ABSENT Penny Kyle, Clerk of the Board Bill Dalton Bret Colson, PIO Manager OTHERS PRESENT: Bradley R. Hogin, General CounselJuanita ��IELEC4E�I(Hp pTpH RpF� CE Heather Dion an OFANaECO LK 9FfiEI NDISTRICT Christopher Townsend Kristine Thalman AUG 2 7 2000 (2) PUBLIC COMMENTS There were no public comments. (3) REPORT OF THE COMMITTEE CHAIR Chair Davert briefly reported on a meeting with IRWD to discuss the state budget and possible impacts on the districts. He also reported that Directors Norby and Ferryman would be attending the conference for CASA that will be held August 21 —23, 2008. Vice Chair Crandall reported on a plant tour he attended with Assemblyman Chuck DeVore. MAites of the Steering Committee July 23, 2008 Page 2 (4) REPORT OF GENERAL MANAGER Jim Ruth, General Manager, reported on the SARI Line; negotiation progress of operating contracts with IRWD and SAWPA; internal employee Informational meetings; and an EMT Retreat focusing on the Strategic Plan. Director of Technical Services, Ed Torres, presented a brief report on the SARI line reclamation study. (5) REPORT OF GENERAL COUNSEL There was no report. (6) ACTION ITEMS A. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the June 25, 2008 Steering Committee meeting. B. MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to adopt Resolution No. OCSD 08-12, authorizing a payment deferral option of Capital Facility Capacity Charges (connection fees) through July 31, 2009, to builders of large housing development projects. (7) INFORMATIONAL ITEMS A. Legislative Affairs Report: Christopher Townsend and Heather Dion of Townsend Public Affairs provided an update on the State Budget and other legislative matters. Ms. Dion explained that the State budget stalemate continued with no end in sight, mostly because both sides were so far apart. As a result of the impasse, legislators continue to consider a property tax shift from local government to fill the $17 billion deficit hole. Mr. Townsend reported on the status of a possible water bond and opportunities OCSD may utilize for future funding on key projects, including waste-to-energy. TPA also discussed the upcoming tour of GWRS with representatives from Los Angeles Department of Water and Power and Public Works. Finally, Michael Gold reported that OCSD would be sending a letter in opposition to HR 3121, a bill requiring flood insurance for all residents within a 500-year flood zone. Mirmtes of the Steering Committee July 23, 2008 Page 3 (8) CLOSED SESSION The Steering Committee convened at 6:22 p.m. in Closed Session, pursuant to Government Code Section 54957(b)(1) and Section 54956.9(b) to discuss two matters. 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 6:29 p.m., the Steering Committee reconvened in regular session. (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (10) ADJOURNMENT The next Steering Committee meeting is scheduled for Wednesday, August 27, 2008. The Chair declared the meeting adjourned at 6:30 p.m. Submitted by: Penny WKyle Clerk of the Board w Distributed at 0?/_Q/0- OCSD Public Information Office Steering Committee meeting. Board of Directors Update July 23, 2008 I. Internet a. Redesigned 18 months ago—averaging about 14,000 visits/month at that time b. In June 2008,we had almost 20,000 visits c. Pages most visited are—Document Center,Jobs, RFPs and Bid Opportunities d. We have almost 1,500 people signed up for our e-Notify email blasts e. We have 4 videos on YouTube—many other govt agencies are already there f. We are looking into Facebook—most OC Register reporters already have a page on Facebook 2. myOCSD—our agency Intranet a. 53,000+employee visits last month b. Migrating soon to SharePoint for enhanced interaction among employees 3. Tours and Events a. Tours are way up this year-115 tours and almost 1500 guests vs.71 tours and 900+ guests last year b. New service—OCSD will undertake tour guide training for GWRS and begin providing selective support for tours of that facility in early 2009. c. Participated in numerous large scale festival-type events—several Earth Day events, Westminster Safety Day, Pollution Prevention Week, Inner Coastal Clean Up. d. VIP employee volunteers—participation is way up 130 volunteers contributing 700 hours this FY vs. 87 volunteers contributing 475 hours last year. 4. Education a. Chat Room Lunches for Employees—30-60 employees each month participate in lunch time talks on industry related topics. More than 500 attendees this past year. b. Sewer Science—3 day in-classroom exercise,teaching high school students-3 sessions this year taught to 100 students at HB High School. c. Working on partnership with Discovery Science Center to teach the program for OCSD so we can reach many more high schools in our service area it. Working with Legislative Affairs to apply for grant funding($82,000 annually)for partnership to expand Sewer Science 5. Construction Outreach a. We are currently tracking 13 construction projects, providing a variety of community outreach efforts to keep impacted customers in the loop. b. 35 notices on traffic detours,construction scheduling and other neighborhood impacts have been sent, reaching 5,000 homes in the past 12 months. c. The projects are in every phase,planning,design,and construction. Many project managers are bringing PIO in earlier to do outreach during the planning and design phases.In addition,we are getting more requests to do notices for line cleanings...not part of the CIP but work that requires traffic control that ultimately impacts the public. .>f 6. GWRSGo Forward Strategy a. After successful commissioning,media interest remains fairly constant. OCWD is the primary contact for media,but they do a good job of keeping us in the loop and making sure our partnership is well documented. b. Formal Go Forward Outreach Strategy is in the works—roll out in September c. Tentatively—12 Point Plan—to include ongoing media relations,government relations, multi-cultural outreach, revamped collateral materials and website,award submissions, visitor center,historical piece and more. 7. Speaker's Bureau/Community Groups a. Launched in January 2008,pro-actively formalizing efforts to reach more community groups vs.just simply responding to inquiries b. To date—31 presentations to over 1,000 people c. Compared to last year—6 presentations and 500 people d. 6 more speaking engagements currently booked—200 more people e. In process of creating a Speakers Program brochure to assist in future marketing efforts B. Discussions with local Cable Television providers a. In discussions with Time Warner Cable to give us guaranteed placement of 5 minute interviews on Local Edition on CNN Headline News channel. Each interview would run at least 25 times at various times of the day and night b. Same interviews will also be available on Video on Demand throughout their system, reaching up to 2.2 million subscribers. c. In return,we agree to promote them as partners in some of our print materials and on our website. There is NO hard cost to us. d. We want to leverage this partnership in the future to help us place a series of public service announcements. 9. Upgraded Annual Reports and new Community Newsletter a. Last two annual reports better represent OCSD's stature as a world leader in the wastewater industry. b. Also another important tool for us to use in expanded outreach activities c. Community Newsletter—3r°issue in production. Delivered in late-August. d. Goes to 18,000 homes around Plant 1 and 2. Focuses on issues of local interest such as construction,odor control and ocean monitoring. 10. Creation of 7 new PSAs and a new overview video a. New Overview video is the first one we have done in 10 years b. Retained on camera talent services of Renee Sams, Emmy award winning news broadcaster from Los Angeles, raised in OC,heavy into environmental issues. Plan on making her the branded face for future OCSD videos and voiceover work. c. 7 new PSAs are in production that will be distributed for viewing on cable television,on our web site and on YouTube. Subjects are: Protecting the public's health(2), Protecting the environment,GWRS(2).Source Control programs(2). d. Next up—Wastewater 101—a more technical look at the step-by-step process of how we treat wastewater(November release) STATE OF CALIFORNIA } )SS. COUNTY OF ORANGE } Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and the Agenda for the Steering Committee meeting held on #'� 2 3 2008, was duly posted for public inspection in the main lobby of the District's offices on /' , 2008. IN WITNESS WHEREOF, I have hereunto set my hand this nth day of i-6 2008. Penny Kyle,Clerk of the Board Orange County Sanitation District Z' it 9 ORANGE COUNTY SANITATION DISTRICT Nr C P � pn N eve 108M1 Ellie Avenue F.unvanVell July 16, 2008 92 701a ez7ge 7016 Maging Address 110 8pv 8127 Fouawc VM1'GA 92728A1P1 Plwne (714)9622411 F. p141862433m NOTICE OF MEETING Berving STEERING COMMITTEE arerrerm aee Bile.peal '�PABi ORANGE COUNTY SANITATION DISTRICT Faunben Valley Pullermn rae'een a'. WE DN ESDAY, JULY 23, 2008 - 5:30 P.M. Nueprrgwlr Beech krvna DISTRICT'S ADMINISTRATIVE OFFICES Le Renr•e 10844 ELLIS AVENUE [e Pakne FOUNTAIN VALLEY, CALIFORNIA 92708 Las Alemlme WWw.00SD.COM Nw B.,1, g "a Face ue Sena Arre A regular meeting of the Steering Committee of the Orange Seeleeeeh County Sanitation District will be held at the above location, date 61.nap, and time. neon ✓Ire Perk Mean tilde Qsste Meer Santa,Dleula McWny[8y Senaaq Davila hu -Rents WAte,Dame caunry N Onerrge Na protect public hichan and Me environment by pm iding eHedbub waaea ear celleptim. oeetmeat,arts recycling. STEERING COMMITTEE AND BOARD MEETING DATES July 23, 2008 August 27, 2008 *September 17, 2008 October 22,2008 *November 19, 2008 *December 17, 2008 January 28, 2009 February 25, 2009 March 25, 2009 April 22, 2009 May 27, 2009 June 24, 2009 *Meetings being held the third Wednesday of the month. STEERING COMMITTEE (1) Roll Call: Meeting Date: July 23, 2008 Meeting Time: 5:30 p.m. Committee Members Doug Davert, Board Chair................................................... ........... _ Larry Crandall, Vice Chair................................................... ........... _ Mark Waldman,Administration Committee Chair........................... Ken Parker, Operations Committee Chair........................... ........... BillDalton ........................................................................... ........... JimFerryman................................................................................._ PhilLuebben....................................................................... ........... Others Brad Hogin, General Counsel............................................. ........... _ Staff 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, JULY 23, 2008 AT 5:30 P.M. ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California www.orsd.com 1. Declaration of Quorum and appointment of Chair Pro Tern, if necessary 2. Public Comments 3. Report of Committee Chair 4. Report of General Manager -.SARI Line Reclamation (Ed Torres) -.Public Outreach Update and Video (Bret Colson) 5. Report of General Counsel 6. Action Items A. Approve minutes of the June 25. 2008 Steering Committee meeting. B. Recommend to the Board of Directors to adopt Resolution No. OCSD 08-12, authorizing a payment deferral option of Capital Facility Capacity Charges (connection fees)throuqh July 31, 2009, to builders of large housing development projects. (Book Page 7) 7. Information Items A. Legislative Affairs Report— Gold (Book Page 9) Book Page I July 23, 2008 8. Closed Session During the course of conducting the business set forth on this agenda as a regular meeting of the Steenng Committee,the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations,pending or potential litigation,or personnel matters,pursuant to Government Code Sections 54956.8, 54956.9.54957 or 54957.6.as noted. Reports relating to(a)purchase and sale of real property; (b)matters of pending or potential litigation;(c)employment actions or negotiations with employee representatives;or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Directors during a permitted closed session and are not available for pudic 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. Confer re Public Employee Performance Evaluation and Appointment (Government Code Section 54957(b)(1)) Title: General Manager 2. Confer with General Counsel—Anticipated Litigation. Significant Exposure to Litigation (Government Code Section 54956.9(b)): One Case. B. Reconvene in regular session. C. Consideration of action, if any, on matters considered in closed session. 9. Other business and communications or supplemental agenda items, if any. 10. Adjournment to August 27, 2008, at 5:30 p.m. Book Page 2 July 23, 2008 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, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of all, of the members of District's Board,are available for public inspection in the office of the Clerk of the Board,located at 10844 Ellis Avenue, Fountain Valley, California. 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 Rem 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 speck 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. PJI 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. Requestsmust 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: Doug Davert (714)318-9550 General Manager: James D. Ruth (714)593-7110 General Counsel: Brad Hogin (714)415-1006 Clerk of the Board: Penny Kyle (E'�i59 -7130 ocsd corn Book Page 3 MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, June 25, 2008, at 5:30 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, June 25, 2008, at 5:30 p.m., in the District's Administrative Office. (1) A quorum was declared present, as follows: STEERING COMMITTEE MEMBERS: DIRECTORS PRESENT: STAFF PRESENT: Jim Ferryman, Chair 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 Don Bankhead Jim Herberg, Director of Engineering Phil Luebben Ed Torres, Director of Technical Services Lorenzo Tyner, Director of Finance and DIRECTORS ABSENT Administrative Services Ken Parker Michael Gold, Legislative Affairs Liaison Penny Kyle, Clerk of the Board OTHERS PRESENT: Bradley R. Hogin, General Counsel Juanita Skillman Ryal Wheeler (2) PUBLIC COMMENTS There were no public comments. (3) REPORT OF THE COMMITTEE CHAIR Chair Ferryman reported on the outcome of the meetings held with the Orange County legislative delegation earlier that month. Directors Davert and Crandall, as well as Bob Ghirelli and Michael Gold attended the meetings. As a result, a letter has been prepared for Directors' signatures to be mailed the following day to Sacramento requesting the State leave the District's property taxes alone during budget deliberations. Book Page 4 Minutes of the Steering Committee June 25, 2008 Page 2 (4) REPORT OF GENERAL MANAGER Jim Ruth, General Manager, reported that staff was continuing to evaluate and establish the criteria to defer connection fees for large building developments as requested by the Builders Industry Association at the May 21P meeting, and the recommendation should be ready for approval at the July meeting. It was also reported that the meeting with Orange County Water District and the County of Orange to collaborate strategies to protect local revenues was rescheduled to July 2n°. (5) REPORT OF GENERAL COUNSEL There was no report. (6) ACTION ITEMS A. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the May 28, 2008 Steering Committee meeting. B. MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve out-of-country travel for a maximum of two Directors to accept the Stockholm Industry Water Award in Stockholm, Sweden, in connection with the Groundwater Replenishment System project, and authorize travel, lodging and per diem costs to be paid by the Sanitation District. (7) INFORMATIONAL ITEMS A. Legislative Affairs Report: Michael Gold provided an update on State and Federal priorities. In Sacramento, he reported that there continues to be a stalemate over the State Budget and now the Governor is holding hostage funds from previous bonds (including Proposition 84) until a new surface water storage bond is placed on the November 2008 ballot. It is likely that the State budget stalemate will continue through the summer. In Washington, D.C., Gold reported that Congressman Ken Calvert released the list of projects he is requesting to be funded in FY09 and his list includes two of OCSD's priority projects: SARI relocation and secondary treatment upgrades. This is significant because Mr. Calvert is a member of the House Appropriations Committee. However, because some in Congress are working to increase oil drilling off coastal waters and tying these proposals to funding bills, it is unlikely anything will move through Congress before the election. Book Page 5 Minutes of the Steering Committee June 25, 2008 Page 3 (8) CLOSED SESSION The Steering Committee convened at 6:10 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 6:20 p.m., the Steering Committee reconvened in regular session. (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (10) ADJOURNMENT The next Steering Committee meeting is scheduled for Wednesday, July 23, 2008. The Chair declared the meeting adjourned at 6:20 p.m. Submitted by: A .,(il u i,: 14- Penny M. (yle Clerk of the Boar H:Wepitagenda\Steedng Commltteet20081070811tem 04.062508 SteeringMinutes.doox Book Page 6 STEERING COMMITTEE Meeting Daee To ad.of Dir. 07/23/0e m/za/gB AGENDA REPORT teem Numbe I Rem Number Orange Co 6(bl Erb) unty Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: DEFERRAL OF CAPITAL FACILITY CAPACITY CHARGES (CONNECTION FEES) FOR LARGE DEVELOPMENT PROJECTS GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 08-12,Authorizing a payment deferral option of Capital Facility Capacity Charges(connection fees)through July 31, 2009, to builders of large housing development projects. SUMMARY As a result of the recent downturn in the housing market, representatives of local home builders associations have requested relief related to the payment of their capital facility capacity charges(connection fees). At the direction of the Steering Committee, staff has reviewed the deferral options of the individual cities and sanitary districts within the Sanitation District's service area. At present, the Sanitation District has reviewed specific deferral plans from the County of Orange, the City of Anaheim, and the City of Orange. Based on those reviews, staff proposes that any deferral of OCSD connection fees be consistent with the deferral criteria used to defer the sewer connection/sewer development fees of those agencies. Deferrals for large developments, not individual applicants, would be made at the discretion of the local agency and not mandated by OCSD. Cities would be required to provide a list of any fee deferrals as part of its monthly reporting to the Sanitation District, along with a copy of the plan approved by their governing body. For cities and sanitary districts that do not have approved plans, the Sanitation District would allow the collection of OCSD connection fees to be deferred to coincide with the collection of city or sanitary district's local sewer connection/sewer development fees. This would allow each city to determine when a deferral is warranted. These cities would also be required to provide a list of any fee deferrals as part of its monthly reporting to the Sanitation District. Additionally, for cities and sanitary districts that do not have approved deferral plans, the report includes criteria recently presented by OCSD staff to the Steering committee. This deferral option would remain in effect until July 31, 2009 and would be reviewed by the Sanitation District prior to its July 2009 Board meeting. All OCSD connection fees deferred during this period due to the Sanitation District must be paid by the July 31, 2009, or as specked by the local agency approved plan, whichever comes first. PRIOR COMMITTEE/BOARD ACTIONS N/A Page 1 Book Page 7 ADDITIONAL INFORMATION Prior to developing the proposal listed above, staff developed an initial deferral option which would require that the staffs of OCSD and the individual cities maintain and monitor a list of deferral criteria. These criteria included: 1. Deferral of fees would be optional at the discretion of each individual city. 2. Cities can suspend participation in the program at any time at their discretion. 3. Participating cities would need to revise their current agreements with OCSD. 4. Deferrals would apply only to connection fees in excess of$50,000. 5. Cities would be required to defer collection of the entire connection fee. 6. Cities would notify OCSD monthly of the any fee deferrals. 7. Cities would remit connection fees, less the 5% administrative charge, to OCSD once collected from the developers. 8. Fees would be deferred until the earlier of the following: a) Issuance of the Certificate of Occupancy; b)July 31, 2009, Background Current Sanitation District policy requires that all connection fees be paid prior to the receipt of a new building permit. Payment is required at this time to reflect needed system capacity and impact on the system. 1. Base CFCCs are determined by type of development and are calculated per 1,000 square feet of building for non-residential development and per unit for residential development. 2. Three categories of Commercial connection fees have been developed: low demand, average demand, and high demand. 3. Significant Industrial Users(Class I Permit Users)are charged demand-based connection fees as a part of their ongoing annual use charges, in addition to the one-time, up-front charge. These fees will include an interest component. 4. Residential fees are tiered based upon number of bedrooms for single-family residential (SFR) and mufti-family residential (MFR)development, as number of bedrooms is the best available indicator of number of residents. 5. Connection fees are collected by local sewering agencies at the time the building permit is issued and they retain 5% of the fee. 6. Credit for demolished structures is granted as if fees for those structures were paid under the current Ordinance. 7. Connection fees are charged for local agency facilities such as schools and libraries, and for state and federal facilities. JDR:LT:MW:AB:lc Page 2 Book Page 8 STEERING COMMITTEE MmUng Dare I To ed.or .Dtr. 07/23/2008 AGENDA REPORT Rem Number Ilem Number 7(al 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 Mid-year report on 2008 goals At the beginning of this year, the Steering Committee and Board of Directors adopted goals for the state and federal legislative programs, which were incorporated into the 2008 Legislative Platform. Below is a status report on the progress made towards these goals mid-way through the year. 2008 Goals • Seek an appropriation through Congress to fund the relocation of the Santa Ana River Interceptor(SARI) line. Staff submitted requests through the offices of Senators Boxer and Feinstein and Congress members Calvert, Miller, Rohrabacher and Sanchez. While decisions about project funding will not be made until later this year or early next year, OCSD enjoys strong delegation support, including Congressman Calvert who sits on the Appropriations Committee. • Support the County of Orange to include Flood subvention funds in the State Budget, ensuring that these funds are released this year. Staff has been working with the federal delegation and our state lobbyists to ensure that SARI funding does not jeopardize the County's requests for Predo Dam. State subvention funds are currently being held°hostage"during budget discussions. Form No.o 10 1 ngmanepon-sc www:grroeror Page 1 Book Page 9 • Pursue an appropriation and general authorization from Congress for Secondary Treatment upgrades in advance of the 2012 deadline. As with the SARI funding, Members Calvert, Miller, Rohrabacher and Sanchez and Senators Boxer and Feinstein received OCSD's appropriation request and maintains bipartisan support by the delegation. Congressman Miller is carrying OCSD's request for a general authorization. • In partnership with the Discovery Science Center, pursue funding of the Sewer Science program to teach high school students about wastewater treatment and generate interest in water-related careers. OCSD worked with the Discovery Science Center and Congresswoman Loretta Sanchez to submit a request to fund Sewer Science education. Like the other requests, funding decisions in Congress will not be made until later this year or early 2009. • Pursue Homeland Security funding for security-related upgrades to OCSD(in partnership with Orange County Water District and others). Staff submitted a$150,000 application to fund security upgrades at plant 2 through the County of Orange. The County, along with Anaheim and Santa Ana PD make the decisions regarding project funding. • Continue pursuing legislative and regulatory changes ensuring that wastewater agencies can apply for water and infrastructure bond funds. While OCSD staff and lobbyists have continued to make the case for including wastewater agencies in the Integrated Regional Water Management Plan (IRMWP) and have been successful including this language in the implementing legislation and through the State Water Plan update, all bond funds for this program are being held hostage by the Governor in exchange for additional surface water storage bonds on the November 2008 ballot. • Develop demonstration programs related to energy recovery or reuse related to climate change mitigation as a way to attract additional State and Federal grants. Staff has been working with Air Products to find funding for a hydrogen demonstration project using digester gas. The pilot program needs additional funding and we have worked with Air Products to seek Federal Support. • Monitor climate change legislation at both the State and Federal levels. Working through state and national associations, OCSD staff has monitored the progress of climate change legislation in Washington, D.C. and worked with these associations to ensure our interests are protected. It is very unlikely that any legislation will move through Congress this year. • Work with cities, the County and other special districts to fight any proposed property tax shifts to balance the State's budget. Staff has taken an aggressive approach to fighting any proposed shin in property taxes to backfill the State's$17 billion deficit. In conjunction with OCWD, staff met with the entire Orange County legislative delegation staff in their district offices, coordinated a trip to Sacramento for the Steering Committee and drafted a letter that was signed by the entire Board of Directors. In addition, staff has worked through CASA to also aggressively defend property taxes and explain the repercussions of a property tax loss to Orange CounVs rate payers. The General Manager has also met with the County's CAO and Supervisors to discuss the property tax proposals and working together to fight off any taking. Fwm No.o iw-+ again -sc R-o.1m 1 Page 2 Book Page I0 Federal Legislative Report Eric Sapirstein, ENS Resources and John Freshman, Troutman Sanders During the month of July, consultants continued monitoring appropriations,Water Resources Development Act, waters of the U.S., sewage right to know and climate change policy issues related to water quality. Oil drilling's grip on the capitol The fiscal year 2009 budget process hit a partisan snag in the House as proponents of increased oil drilling sought to amend spending bills with provisions to lift the bans on coastal and public lands oil exploration. As a result, the Democratic leadership shutdown further consideration of spending bills. While action in the Senate is not quite as contentious, it is only because the Senate has not moved its bills to the floor; however, when this occurs, we expect similar attempts to overturn the oil drilling bans during floor debate. As a result, the FY09 budget will not be completed until late fall or winter. For OCSD and its appropriation requests, the ongoing rancor probably means Congress will continue to pass resolutions to fund programs but defer earmarks and major budget actions until after the election and a new administration. Whether this scenario unfolds will remain a question until late 2008. Congressional deadlock is also affecting efforts to pass a Water Resources Development Act (WRDA)2008 bill in the House Committee on Transportation and Infrastructure. Following hearings before the Subcommittee on Water and Power, staff is reviewing member requests but it is unlikely they will pass anything this year. The impacts to OCSD will be felt because WRDA 2008 is the bill we would like to use for an authorization to fund secondary treatment upgrades Some key bills slowed House Chairman Jim Oberstar has continued his quest to redefine what waters are regulated under the Clean Water Act. His legislation (and companion legislation in the Senate) referred to as the Clean Water Restoration Act (H.R. 2421/S. 1870) seek to delete the term "navigable waters" and rely on "waters of the U.S." as the term of art for regulating waters under the Clean Water Act. This initiative has stirred broad and deep opposition. Nonetheless, an effort to move the bill out of the committee without a formal markup was attempted and rebuffed by the leadership and it now appears that the bill will not see any action this year. The House approved legislation amending the Clean Water Act requiring publirally owned treatment works(POTW)to notify the public of potential health threats stemming from sewer overflows. After intense negotiations with the committee staff, the bill was amended to exempt California from the federal reporting/monitoring/public notification provisions, so long as California seeks this delegation from EPA. Despite the broad support in the House, the bill might be in trouble in the Senate because members expressed concern over the possibility of creating a new unfunded mandates on local governments. Currently the bill is stalled in the Senate. The Senate also spent much of the first half of June debating climate change legislation and after a weeklong debate, it was pulled from the floor because of a lack of adequate support to overcome a filibuster. Sponsored by Senator Boxer,the bill only garnered 48 votes to end debate (60 were needed). This legislation will return next year and will likely contain significant funding to POTWs. ggNtle R0.M� SC Form No.11w1ax-1 nwiw:aimev� Page 3 Book Page I 1 Finally, biosolids continue to be a likely topic of discussion later this year with hearings on whether pretreatment programs can control non-biodegradable constituents and the safety of land application. A summary of the District's federal legislation priorities • FY 09 Appropriations: Final funding decisions will not be determined for several months; however, the continuing economic challenges are providing increased interest in providing infrastructure funding through a second stimulus bill. An actual spending measure has not been developed, but the House and Senate appropriators have been in discussion with leadership over the kinds of activities that would be funded. Funding is likely to target water quality-related infrastructure needs. • Secondary Treatment: While the appropriations process is delayed, Congresswoman Sanchez and Congressman Calvert have both expressed support for our appropriations request as has Senators Boxer and Feinstein, who enjoy leadership positions. Yet, while the debate over oil drilling continues, all earmarks are frozen and EPA's budget will not be considered. • SARI Line Relocation: The District's request for funding assistance to relocate the SARI continues to enjoy strong bipartisan support; but like other appropriations measures, no decisions will be made until later this year or possibly 2009. • Support for Alternative Energy Project: The District requested support from Representative Rohrabacher for a collaborative alternative energy production project that would rely on digester gas. The ongoing project requires additional Department of Energy assistance. Rohrabacher's staff continues to examine the project and the request for support of the project State Legislative Report Chris Townsend and Heather Dion,Townsend Public Affairs Budget highlights (and lowlights) On July 10, the budget conference committee completed their work, which represents the Democratic proposal to balance the books and alleviate the multi-billion dollar deficit. While the Governor's proposal relies on securitizing the lottery and the Republicans are pushing for spending caps and cuts, the Democrats proposed a series of tax increases to generate an estimated $9.7 billion, including: • Increasing the income tax for the highest earners this will generate $5.6 billion; • Better enforcement of current tax laws to generate $1.5 billion; • Suspending (for three years) businesses' ability to carry a portion of their tax deductible losses to following fiscal years, producing about$1.1 billion; • Repealing the tax adjustment for middle and upper-income taxpayers to yield $815 million; • Restoration of a higher tax bracket for businesses (which existed prior to 1997),which will generate $470 million and • Repealing the dependent child credit for high-income earners, creating about $215 million. It is widely believed that neither the Governor nor the Republicans will be supportive of the conference committee's proposed solutions. Foam No.D im-i Ae•ba Noon- Page 4 Book Page 12 Now that the conference committee has concluded its work, the party leaders in the Assembly and Senate (the"big four") will continue to meet to find consensus and more importantly, two- thirds vote majority, to enact a state budget. While the constitutional deadline for a budget has passed, the pressure to enact something by August is mounting because recently, the State Controller stated California will run out money by that time. Running out of money means the State will be forced to take out costly loans to cover mandatory costs, while other services, vendors and State employees will not be paid at all. While proposals to take local government property taxes still do not appear anywhere in writing or bill form, the increased partisan tension and inability to reach a compromise means the matter is not yet off the table. Moreover, renewed talk of borrowing property tax via Proposition 1A's requirements, has resurfaced. Yet another water bond? The Governor and Senator Feinstein continue to work on their pledge to place a water bond on the November 2008 ballot. In mid-July, they released a proposal that includes money for local and regional water supply projects, Delta sustainability and surface and groundwater storage projects. Compared to the proposal by the Governor late last year, this one scales back a direct call for dam construction. There is, however, a specific funding source for reclamation and recycling projects that produce new water. The Governor is using this proposal as leverage through the budget process with both Republicans and Democrats. TPA's monthly activities: • TPA testified against AB 2986 (Leno) against the bill and discussed OCSD's opposition with the legislative delegation. • Lobbyists continue to press members to oppose a property tax • AB 983 (Ma) is moving steadily through the Senate and Townsend's staff express OCSD's opposition to this bill, although passage seems likely. • TPA has scheduled Commissioners from Los Angeles Department of Water and Power Public Works Department to tour GWRS later this month. JR:mg Fa No 1p i ppnm Re -sc Nwwa.01 a 7 Page 5 Book Page 13 OCSD Bill Tracking— Updated July 2008 (priority bills in bold) BIII No. Summary Position(1)/ Status AS 983 This bill provides that there is an implied warranty in the accuracy and completeness of the plans and Oppose (Ma) specifications. The bill shifts the burden to the agency if something wrong occurs after completion of the On Senate Floor ro ect and the contractor could claim error in the plan, rather than construction error. AB 1654 Implements the Safe Drinking Water,Water Quality and Supply, Flood Support (Huffman) Control, River and Coastal Protection Bond Act of 2006 to include wastewater treatment as eligible for Recently amended funding under the Integrated Regional Water Management Plans. and in Rules committee AS 1978 Sponsored by the County of Orange. Bill clarifies that GIS and mapping data will be subject to same Support (Solorio) public records act laws as computer software is not subject to public records rules; however it may be Died sold for non-commercial use. AB 2270(Laird) Promotes greater water recycling and allows wastewater treatment agencies to regular water softeners Support for the purpose of reducing salts in the wastewater supply. On Senate Floor w AS 2986(Leno) Requires the State Water Resources Control Board to review, grade and monitor sewage treatment Oppose $ plants, including collection systems. Allows the water boards to impose fees to finance the program. In Senate Appropriations w ao SB 642 Design-build authority for water and wastewater agencies and cities/counties that provide these services. Watch a (Wolk) Sets a threshold of$2.5 million for projects but limits total projects statewide to 20. In Senate Appropriations SB 1176 A redo of Persia's SB 1001 (vetoed by the Governor)from last year. The bill makes changes to the Watch Perate R Tonal Water QuaIN Control Boards inUWin lowerin number of members from nine to seven. (1)Position is derived from the 2008 Legislative Platform and Goals unless stated otherwise. Bills where there is no stated board policy are marked watch. Fqm N.,O 1N 1 nge�ae Repn-sc Rwiae00�1080) Page ORANGE COUNTY SANITATION DISTRICT (714) 962-2411 w\Nw.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018